Department of Finance
city of chicago
September 12, 2017
Honorable Anna Valencia City Clerk
121 North LaSalle Street, Room 107 Chicago, Illinois 60602
Dear Ms. Valencia:
1 am submitting to you the Comprehensive Annual Financial Report (CAFR) thereto for the year ended December 31, 2016. This report is accurate in all material respects and is prepared in a manner designed to present fairly the financial position and results of operations of the various funds.
Sincerely,
Erin Keane City Comptroller
Enclosure
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121 NORTH LASALLE STREET, SUITE 700, CHICAGO, ILLINOIS 60602
G i t y of Chicago
Rahm Emanuel, Mayor
Carole L. Brown, Chief Financial Officer Erin Keane, City Comptroller
CITY OF CHICAGO
COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2016
Rahm Emanuel, Mayor
Carole L. Brown, Chief Financial Officer Erin Keane, City Comptroller
Prepared by the Department of Finance
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OFFICE OF THE MAYOR
CITY OF CHICAGO
RAHM EMANUEL MAYOR
June 30, 2017
Dear Chicagoans:
Thank you for your interest in the City of Chicago's Comprehensive Annual Financial Report (CAFR) for the 2016 fiscal year.
In 2016, Chicago continued to make progress on addressing the City's financial legacy liabilities, reducing our structural deficit through savings and sustainable revenue growth, and identifying stable funding sources for the Municipal and Laborers' pension funds. Additionally, the general fund balance shows growth again in 2016, which is a direct result of cost savings and reform measures instituted by the City over the prior six budgets. This progress will endure in 2017 as the City continues to pursue sustainable and responsible financial practices.
The 2016 CAFR also reflects the significant progress we have made over the years in improving our financial reporting. This year, the independent auditors found no material weakness, representing five straight years of no material weaknesses.
While we have made notable progress, we will continue to follow a deliberate reform and invest strategy to secure the Chicago's long-term financial future and to ensure ongoing economic growth in all neighborhoods across the City.
Mayor
Sincerely,
CITY OF CHICAGO THE CITY COUNCIL RAHM EMANUEL, Mayor
1st Ward JOE MORENO
2nd Ward BRIAN HOPKINS
3rd Ward PAT DOWELL
4th Ward SOPHIA KING
5th Ward LESLIE A. HAIRSTON
_ 6th Ward_. RODERICK T. SAWYER
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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. SOUS
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
41 st 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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2016 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF CHICAGO
Table of Contents
PART I - INTRODUCTORY SECTION
Letter of Transmittal |910|Certificate of Achievement for Excellence in Financial Reporting 12
Organization Chart 13
PART II - FINANCIAL SECTION
Independent Auditors'Report 15
Management's Discussion and Analysis 17
Basic Financial Statements
Exhibit 1 Statement of Net Position 31
Exhibit 2 Statement of Activities 32
Exhibit 3 Balance Sheet, Governmental Funds 34
Exhibit 4 Statement of Revenues, Expenditures and Changes in Fund Balances,
Governmental Funds 36
Exhibit 5 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balances of Governmental Funds to the Statement of Activities 40
Exhibit 6 Statement of Revenues and Expenditures - Budget and
Actual, General Fund (Budgetary Basis) 41
Exhibit 7 Statement of Net Position, Proprietary Funds 42
Exhibit 8 Statement of Revenues, Expenses and Changes in Net Position, Proprietary Funds 44
Exhibit 9 Statement of Cash Flows, Proprietary Funds 45
Exhibit 10 Statement of Fiduciary Net Position, Fiduciary Funds 47
Exhibit 11 Statement of Changes in Plan Net Position, Fiduciary Funds - Pension Trust Funds 48
Notes to Basic Financial Statements 49
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios, Last Two Years 98
Schedule of Contributions, Last Ten Years 102
Schedule of Other Postemployment Benefits Funding Progress, Last Three Years 105
Statement of Revenues and Expenditures - Budget and Actual, Pension Fund (Budgetary Basis) 106
Combining and Individual Fund Statements
General Fund
Schedule A-1 Schedule of Revenues - Budget and Actual (Budgetary Basis) 108
Schedule A-2 Schedule of Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) 111
Nonmajor Governmental Funds
Schedule B-1 Combining Balance Sheet 128
Schedule B-2 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 129
Nonmajor Special Revenue Funds
Schedule C-1 Combining Balance Sheet 132
Schedule C-2 Combining Statement of Revenues, Expenditures and
Changes in Fund Balance (Deficit) 134
Schedule C-3 Combining Schedule of Revenues - Budget and Actual (Budgetary Basis) 136
Schedule C-4 Combining Schedule of Expenditures and Encumbrances - Budget and Actual
(Budgetary Basis) 138
Schedule C-5 Schedule of Expenditures and Encumbrances - Budget and Actual (Budgetary Basis) 141
Special Revenue Funds - Federal, State and Local Grants
Schedule C-6 Special Revenue Funds - Federal, State and Local Grants - Combining Balance Sheet 152
Schedule C-7 Special Revenue Funds - Federal, State and Local Grants - Combining Statement of
Revenues, Expenditures and Changes in Fund Balance 154
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Combining and Individual Fund Statements - Concluded
Nonmajor Capital Projects Funds
Schedule D-1 Combining Balance Sheet 158
Schedule D-2 Combining Statement of Revenues, Expenditures and Changes in Fund Balance 159
Fiduciary Funds
Schedule E-1 Agency Funds, Combining Statement of Changes in Assets and Liabilities 162
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Schedule E-3 Pension Trust Funds, Combining Statement of Changes in Plan Net Position 165
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Table 1 Net Position by Component, Last Ten Years 168
Table 2 Changes in Net Position - Accrual Basis of Accounting, Last Ten Years 170
Table 3 General Governmental Revenues by Source, Last Ten Years 176
Table 4 General Governmental Expenditures by Function, Last Ten Years 178
Table 4A Changes in Fund Balances, Governmental Funds, Last Ten Years 180
Table 5 Fund Balances, Governmental Funds, Last Ten Years 182
Table 6 General Fund, Schedule of Revenues, Expenditures and Changes in Fund Balances,
Five Years Ended December 31, 2016 184
Table 7 Special Revenue Funds, Schedule of Revenues, Expenditures and
Changes in Fund Balances, Five Years Ended December 31, 2016 185
Table 8 Debt Service Funds, Schedule of Revenues, Expenditures and
Changes in Fund Balances, Five Years Ended December 31, 2016 186
Table 9 Capital Projects Funds, Schedule of Revenues, Expenditures and
Changes in Fund Balances, Five Years Ended December 31, 2016 187
Table 10 Property Tax Levies by Fund, Five Years Ended December 31, 2016 188
Table 11 Property Levies, Collections and Estimated
Allowance for Uncollectible Taxes, Last Ten Years 190
Table 12 Top Ten Estimated Equalized Assessed Valuation, Current Year and Nine Years Ago 191
Table 13 Assessed and Estimated Fair Market Value of All Taxable Property, Last Ten Years 192
Table 14 Property Tax Rates-Direct and Overlapping Governments, Per $100 of Equalized
Assessed Valuation, Last Ten Years 194
Table 15 Property Tax Rates-City of Chicago, Per $100 of Equalized
Assessed Valuation, Last Ten Years 194
Table 16 Ratio of General Net Bonded Debt to Equalized Assessed Value and
Net Bonded Debt per Capita, Last Ten Years 196
Table 17 Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total
Governmental Expenditures, Last Ten Years 198
Table 18 Computation of Direct and Overlapping Bonded Debt 199
Table 19 Debt Statistics, Last Ten Years 200
Table 20 Revenue Bond Coverage, Last Ten Years 202
Table 21 Ratio of Outstanding Debt by Type, Last Ten Years 204
Table 22 Debt Service Requirements for General Long-term Debt 207
Table 23 Debt Service Requirements for General Obligation Debt 208
Table 24 Debt Service Requirements for Proprietary Funds 210
Table 25 Long-term Debt 212
Table 26 Population and Income Statistics, Last Ten Years 216
Table 27 Principal Employers (Non-government) Current Year and Nine Years Ago 217
Table 28 Full Time Equivalent City of Chicago Employees by Function, Last Ten Years 218
Table 29 Operating Indicators by Function/Department, Last Ten Years 219
Table 30 Capital Assets Statistics by Function, Last Ten Years 219
Table 31 Interest Rate Swap Counterparty Entities 220
Table 32 Bank Facilities 221
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PARTI INTRODUCTORY SECTION
|1010|Department of Finance city of chicago
June 30, 2017
To the Honorable Mayor Rahm Emanuel, Members of the City Council, and Citizens of the City of Chicago:
We are pleased to submit the Comprehensive Annual Financial Report (CAFR) of the City of Chicago for the fiscal year that ended December 31, 2016. 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 interna! control structure is designed to provide reasonable but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of control should not exceed the benefits likely to be derived and that the valuation of costs and benefits requires estimates and judgments by management.
The Code also requires that the City's basic financial statements are audited by independent certified public accountants selected by the Committee on Finance of the City Council. This requirement has been met, and the unmodified audit opinion rendered by Deloitte & Touche LLP is included in the financial section of this report. The audit was conducted as a subcontractor arrangement between Deloitte & Touche LLP and a consortium of Chicago-based minority- and women-owned certified public accounting firms.
In addition to meeting the requirements set forth in the Code, an additional audit (Single Audit Act Amendments of 1996, Government Auditing Standards, and Office of Management and Budget's (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards) designed to meet the requirements of the OMB Uniform Guidance, a government-wide framework for grants management, is performed annually. GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of a Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors.
|1010|121 NORTH LASALLE STREET, SUITE 700, CHICAGO. ILLINOIS 60602
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 over 2.69 million residents. The City is a "home rule" unit of local government under Illinois law and is governed by an elected mayor and city council. The Mayor, the Chief Executive Officer of the City, is elected by general election for a four-year term. The City Council, the City's legislative body, consists of 50 members, each representing one of the City's 50 wards. The members of the City Council are elected through popular vote by ward for four-year terms. The City provides public safety, street maintenance and sanitation, transportation infrastructure, water, sewer, health, cultural, aviation and human services.
City employees are covered by one of four pension plans that are responsible for providing certain pension benefits and that receive funding from the City. These four plans include the Municipal Employees' Annuity and Benefit Fund, Laborers' and Retirement Board Employees' Annuity and Benefit Fund, Policemen's Annuity and Benefit Fund, and Firemen's Annuity and Benefit Fund. These component units are included in the City's reporting entity. Additional services are provided to residents by the Chicago Public Schools, Chicago Park District, Chicago Transit Authority, City Colleges of Chicago and the Chicago Housing Authority. However, these component units are not included in the City's reporting entity.
Annual budgets are adopted for all of the City's funds, including the general fund and certain special revenue and enterprise funds: On or before October 15, the Mayor submits a proposed budget of expenditures and the means of financing them to the City Council for the upcoming fiscal year, which runs the calendar year. The City Council is required to hold at least one public hearing regarding the proposed budget, and the budget recommendation must be made available for public inspection at least ten days prior to the passage of the annual appropriation ordinance, which must be enacted by 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 have one of the world's most diverse economies, with no single sector employing more than 14 percent of the City's workforce. This diversity provides financial 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. According to the Bureau of Labor and Statistics, the Chicago metropolitan area had an unemployment rate of 5.8 percent in 2016.
More than 400 major corporate headquarters (with at least 1,000 employees) are located in the Chicago metropolitan area, including 31 in the Fortune 500. In 2016, World Business Chicago tracked more than 350 business expansions in Chicago, leading to the city being named the "Top Metro" in the United States for corporate relocation by Site Selection magazine for the fourth year in a row.
Chicago remains a global financial and trading center and is also a hub for the development of new financial technologies. Chicago is home to nearly one quarter of the world's futures trading volume, which is two times more than New York and similar to all of the European exchanges combined. The Chicago Board Options Exchange is the largest options exchange in the United States, and Chicago-headquartered CME Group is the top derivatives exchange in the world, posting a volume of $3.9 billion in 2016, the largest annual volume of all global exchanges.
The growing innovation and technology industry has a strong presence in Chicago. There are nearly 100 innovation centers in Chicago, including 1871, one of the top five business incubators in the world. In 2016, Chicago startups and tech companies raised more than $1.7 billion in 2016 from 179 companies which is up from 143 companies in 2015. Fifty five Chicago companies were acquired, totaling $1.73 billion.
Chicago has long been a center for international business. In 2016, the Chicago metropolitan area led the nation in foreign direct investment (FDI) for the fourth year in a row, according to the 2016 IBM Global Location Trends report. Chicago was the only North American city ranked in the top 20, ranking seventh in total number of FDI projects. Chicago-based companies also have a strong international presence, with over 8,000 locations across more than 170 countries or territories.
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On a number of fronts, Chicago's real estate development market is growing at a level not seen since before the recession. The city's industrial occupancy rate is at a 15 year high. In 2016, the city also reached the highest number of building cranes (50) in ten years.
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 has grown substantially in recent years with a record 54.1 million visitors citywide in 2016, an ~ in"crease"of 2:9"p
visited sites in the US with 12.9 million guests just in the second half of 2016. Chicago's tourism industry has added an estimated 4,600 jobs in 2016 for a total of an estimated 145,100 jobs supported by the industry.
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 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 ten years, a forecast of the City's finances for the next three years, and analyses of its liquidity, pensions, debt obligations, tax increment financing, and capital improvement program.
The City bases its annual budget on an assessment of the available resources for that year and an understanding of the City's service priorities, adopting a balanced budget each year in accordance with the Illinois Municipal Code. As part of the annual budget process, the City evaluates each department's direct and indirect costs in order to accurately assess expenses across City government and strives to maintain a diversified revenue system that is responsive to the changing economy and designed to protect the City from short-term fluctuations in any individual revenue source. The City's financial policies are intended to secure the City's fiscal integrity and health, encourage equitable allocation of costs and resources, and identify potential financial risks and options to mitigate them, maximize economic efficiency, and allow sufficient flexibility to consider new fiscal and budgetary strategies.
2016 Budget and Major Initiatives. The 2016 budget included multiple reforms and efficiencies that further streamlined government operations and achieved taxpayer savings along with new sustainable revenue sources to provide dedicated revenue to fund the Police and Fire pensions and invest in city services. Building on the structural reforms and efficiencies put into place in previous budgets, the 2016 budget made significant investments in after-school and youth job programs, infrastructure improvements, expanded neighborhood services, and public safety. The 2016 budget also continued the City of Chicago's fiscal and budgetary strategy of ensuring the City's pension funds are on a path to solvency, eliminating unsustainable financial practices, and ending the use of financing structures and techniques that expose taxpayers to undue risk.
The 2016 budget included further refinements to grid garbage collection, removing over 20 garbage trucks from the City's daily deployment. This refinement freed up resources which were redirected to provide additional tree trimming and rodent abatement services in neighborhoods. On top of achieving savings by streamlining garbage collection, the 2016 budget included significant savings through the elimination of over 100 unneeded vacancies, consolidating technology functions across departments into one central IT department, healthcare reforms, and the final year of the phase-out of retiree healthcare.
In 2016, the City expanded the One Summer Chicago program to serve more than 25,000 youth through summer placement for youth, ages 14 to 24. The One Summer Chicago program has grown by 70 percent since it was launched in 2011. The City also provided an additional investment in after-school programs, increasing the number of available after-school programming opportunities to nearly 27,000 in 2016. The City provided funding to allow year-round pothole patching and street repairs, rather than seasonal repairs, and in 2016, the Department of Water Management continued to renew and upgrade the City's aging water and sewer system. Finally, the 2016 budget made key investments in public safety by funding the transition of over 300 police officers who were performing administrative functions back to critical policing functions in neighborhoods. These administrative positions were filled with non-sworn administrative personnel where necessary.
Since the 2012 budget, the City has worked to eliminate the unsustainable practices of the past, and the 2016 budget includes significant progress to reform the City's finances, fund pensions, and eliminate taxpayer risk.
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Beginning in 2015 and completed in 2016, the City converted all taxpayer-backed variable-rate debt and terminated the corresponding swaps in the City's portfolio. This financing technique has now been fully replaced with stable, fixed rate bonds payable over the next 20 to 40 years. In the 2016 budget, the City began a four-year phase out of the financial practice known as "scoop and toss" in which the City restructures its near term debt payments with long-term debt. The City reduced "scoop and toss" by approximately $100 million with the 2016 budget.
As part of the 2016 budget, the City passed a four-year property tax increase solely to fund the increasing Police and Fire pension contributions as required by Public Act 99-0506, which is discussed further in the Pension Funds and Other Postemployment Benefits section of this document. While the property tax increase was passed as part of the 2016 Budget, it included an increase beginning in 2015. The property tax increase began in 2015 with an additional $318 million added to the City's property tax levy and $109 million added to the 2016 property tax levy.
Lastly, the City also deposited $5 million into the operating liquidity fund, which is part of the City's budget stabilization funds.
Awards and Acknowledgments. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Chicago for its CAFR for fiscal year 2015. This was the twenty-third consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized CAFR. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year.
We believe our current CAFR continues to meet the GFOA Certificate of Achievement program's requirements, and it has been submitted for consideration for this year's award.
This report could not have been prepared without the dedication and effective help of the staff of the Department of Finance. We wish to express our appreciation to those who contributed to the preparation of this report.
Respectfully submitted,
Carole L. Brown Chief Financial Officer
Erin Keane City Comptroller
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<5b
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 31,2015
Executive Director/CEO
CITY OF CHICAGO ORGANIZATION CHART AS OF 12/31/2016
Citizens
MAYOR
CITY COUNCIL
CITY TREASURER
COUNCIL COMMITTEES
Department of Administrative Hearings
Department Of Business Affairs and Consumer Protection
Board
of Ethics
Department of Public Health
Office of Inspector General
Department of
Procurement Services
Commission on Animal Care and Control
Department of Planning
and Development
Department of Family and
Support Services
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
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT, MANAGEMENT'S DISCUSSION AND ANALYSIS
AND
THE BASIC FINANCIAL STATEMENTS
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Deloitte
Tel: +1 312 486 1000 Fax: +1 312 486 1486 www.deloitte.com
INDEPENDENT AUDITOR'S REPORT
To the Honorable Rahm Emanuel, Mayor and Members of the City Council City of Chicago, Illinois
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chicago, Illinois (the "City"), as of and for the year ended December 31, 2016, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contends.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the City's Pension Plans (the "Plans"), which, in aggregate, represent substantially all the assets and revenues of the fiduciary funds, included in the aggregate remaining fund information. Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for the Plans, is based solely on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chicago, Illinois, as of
December 31, 2016, 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.acceptedL in the,ynitedi;States,of America require that the Management's Discussion and Analysis, Schedule of Changes in the Net Pension Liability and Related Ratios, Schedule of Contributions, Schedule of Other Postemployment Benefits Funding Progress, and Schedule of Revenues and Expenditures - Budget and Actual, Pension Fund (Budgetary Basis) as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We and other auditors have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The Combining Fund Statements, Individual Fund Statements, introductory section and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The Combining and Individual Fund Statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the reports of the other auditors, the Combining and Individual Fund Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
June 30, 2017
The introductory section and the statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2016
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, 2016. 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.
2016 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 $27,429.9 million (nef deficit). The net deficit is composed of $3,307.6 million in net investment in capital assets and $3,149.5 million in net position restricted for specific purposes offset by an unrestricted deficit of $33,887.0 million. The net deficit increased in 2016 by $3,598.5 million primarily as a result of assumption and plan changes impacting the pension liability.
The City's total assets increased by $1,102.2 million. The increase primarily relates to a $958.2 million increase in capital assets as a result of the City's capital improvement program.
Total Revenues and Other Financing Sources (Uses), in the fund financial statements during 2016 were $7,342.2 million, a decrease of $207.5 million (2.7 percent) from 2015, primarily due to the reduction of proceeds from debt, offset by an increase in tax revenue.
The General Fund ended 2016 with a total Fund Balance of $269.6 million, of which $153.7 million was Unassigned. Total Fund Balance increased from 2015 primarily because Revenues and Other Financing Sources were greater than Expenditures and Other Financing Uses by $54.4 million.
The City's General Obligation Bonds and notes outstanding decreased by $191.4 million during the current fiscal year. The proceeds from the issuance of General Obligation Bonds were used to refund or pay interest on all or a portion of certain outstanding general obligation bonds.
The General Fund expenditures on a budgetary basis were $72.9 million less than budgeted as a result of variances in general government expenditures primarily due to lower than budgeted pension contributions.
Overview of the Basic Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements, which include the following components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the basic financial statements. This report also contains required supplementary information and other supplementary information in addition to the basic financial statements. These components are described below:
Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, using accounting methods similar to those used by private-sector companies. The statements provide both short-term and long-term information about the City's financial 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.
17
CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2016
The government-wide financial statements include two statements:
The statement of net position presents information on all of the City's assets, deferred outflows, liabilities, and deferred inflows with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating, respectively. To assess the overall health of the City, the reader should consider additional non-financial factors such as changes in the City's property tax base and the condition of the City's infrastructure.
The statement of activities presents information showing how the government's net position changed during each fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future periods (for example, uncollected taxes, and earned but unused vacation). This statement also presents a comparison between direct expenses and program revenues for each function of the City.
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges {business-type activities). The governmental activities of the City include general government, public safety, streets and sanitation, transportation, health, and cultural and recreation. The business-type activities of the City include water, sewer, tollway and airport services.
The government-wide financial statements present information about the City as a primary government, which includes the Chicago Public Library. The government-wide financial statements can be found immediately following this management's discussion and analysis.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of a fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities.
The City maintains 19 individual governmental funds. Information for the seven 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 seven 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, the Community Development and Improvement Projects Fund, and the Pension Fund. Data from the other governmental funds is 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 to demonstrate compliance with this budget. The basic governmental fund financial statements can be found immediately following the government-wide statements.
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2016
Proprietary funds. These funds are used to show activities that operate more like those of commercial enterprises. Because these funds charge user fees for services provided to outside customers including local governments, they are known as enterprise funds. Proprietary funds, like government-wide statements, use the accrual basis of accounting and provide both long- and short-term financial information. There is no reconciliation needed between the government-wide financial statements for business-type activities and the proprietary fund financial statements. The City uses five enterprise funds to account for its water, sewer, Skyway, and two airports operations.
Proprietary funds provide the same type of information as the government-wide financial statements, but provide more detail. The proprietary fund financial statements provide separate information for the Water Fund, Sewer Fund, Chicago Skyway Fund, Chicago-O'Hare International Airport Fund and the Chicago Midway International Airport Fund. All the proprietary funds are considered to be major funds of the City. The basic proprietary fund financial statements can be found immediately following the governmental fund financial statements.
Fiduciary funds. Fiduciary funds are used primarily to account for resources held for the benefit of parties outside the primary government. The City is the trustee, or fiduciary, for its employees' pension plans. It is also responsible for other assets that, because of a trust arrangement can be used only for the trust beneficiaries. The City also uses fiduciary funds to account for transactions for assets held by the City as agent for various entities. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City's own programs. All of the City's fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. The accounting used for fiduciary funds is much like that used for proprietary funds. The fiduciary fund basic financial statements can be found immediately following the proprietary fund financial statements.
Mores 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 $27,429.9 million at December 31, 2016. Of this amount, $3,307.6 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, $3,149.5 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, 2016
City of Chicago, Illinois Summary Statement of Net Position (in millions of dollars)
Governmental Business-type
Activities Activities
2016 2015 . 2016 2015
Current and other assets $ 5,451.0 $ 5,384.8 $ 4,816.2 $ 4,738.4
• Capital assets 8;676.3 • -8,508.2 - -15;397.6 14,607.5 ¦¦¦¦¦
Total Assets 14,127.3 13,893.0 20,213.8 19,345.9
Deferred outflows 5,667.9 7,187.7 1,285.4 1,701.5
Total 19,795.2 21,080.7 21,499.2 21,047.4
Long-term liabilities outstanding 43,065.4 41,404.0 18,351.4 17,914.4
Other liabilities 1,947.5 1,969.4 1,339.4 1,274.8
Total Liabilities 45,012.9 43,373.4 19,690.8 19,189.2
Deferred Inflows 2,254.5 1,743.1 1,766.1 1,653.8
Net Position:
Net investment in capital assets (65.5) (292.4) 3,373.1 2,892.5
Restricted 2,269.6 1,519.9 879.9 1,043.1
Unrestricted (29,676.3) (25,263.3) (4,210.7) (3,731.2)
Total net (deficit) position $ (27,472.2~ $ (24,035.8~ $ 42.3~ $ 204.4~
201S
Total
10,123.2 23,115.7
33,238.9 8,889.2
42,128.1
59,318.4 3,244.2
62,562.6
3,396.9
2,600.1 2,563.0 (28,994.5)
2016
10,267.2 24,073:9-
34,341.1 6,953.3
41,294.4
61,416.8 3,286.9
64,703.7 4,020.6
3,307.6 3,149.5 (33,887.0)
$ (27,429.9) $ (23,831.4)
Governmental Activities. Net position of the City's governmental activities decreased $3,436.4 million to a deficit of $27,472.2 million primarily as a result of an increase in the pension liability due to assumption and plan changes. 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 $29,676.3 million deficit at the end of this year. This deficit does not mean that the City does not have the resources available to pay its bills next year. Rather, it is the result of having long-term commitments that are greater than currently available resources. Specifically, the City did not include in past annual budgets the full amounts needed to finance future liabilities arising from personnel, property, pollution and casualty claims ($942.6 million) and Municipal employees, Laborers', Policemen's and Firemen's net pension liability and other post-employment benefits ($31,679.3 million). The City will include these amounts in future years' budgets as they come due. In addition, the deferred inflow balance of $1,534.2 million from concession service agreements will be amortized into income over the life of such agreements.
Revenues for all governmental activities in 2016 were $6,741.9 million, an increase of $347.9 million from 2015. Over half of the City's revenues were derived from taxes which increased by $341.0 million (9.1 percent). Total tax revenue included an increase in property taxes received of $85.1 million (7.2 percent).
Expenses for governmental activities in 2016 were $10,178.3 million, a decrease of $1,076.3 million (9.6 percent) over 2015. The amount that taxpayers paid for these governmental activities through City taxes was $4,095.2 million. Some of the cost was paid by those who directly benefited from the programs ($879.7 million), or by other governments and organizations that subsidized certain programs with grants and contributions ($738.2 million).
The City paid $1,026.3 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 $42.3 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, 2016
City of Chicago, Illinois Changes in Net Position Years Ended December 31, (in millions of dollars)
Governmental
Activities
2016 2015
Revenues and Other Transfers: Program Revenues: Licenses, Permits, Fines and
Charges for Services $ 879.7 $ 814.8
Operating Grants and Contributions 516.7 496.7
Capital Grants and Contributions 221.5 249.1
General Revenues:
Property Taxes 1,264.5 1,179.4
Other Taxes 2,830.7 2,574.8
Grants and Contributions not
Restricted to Specific Programs 782.0 815.2
Other 244.3 263.4
Total Revenues 6,739.4 6,393.4
Other Transfers:
Transfer In (Out) 23 06_
Total Revenues and Other Transfers 6,741.9 6,394.0
Expenses:
General Government 4,549.2 6,238.0
Public Safety 4,266.1 3,192.2
Streets and Sanitation 257.0 253.4
Transportation 378.8 471.7
Health 116.7 119.2
Cultural and Recreational 114.7 118.8
Interest on Long-term Debt 495.8 861.3
Water
Sewer
Midway International Airport
Chicago-O'Hare International Airport
Chicago Skyway - -
Total Expenses 10,178.3 11,254.6
Change in Net Position (3,436.4) (4,860.6)
Net (Deficit) Position, Beginning of Year (24,035.8) (19,175.2)
Net (Deficit) Position, End of Year $(27,472.2) $(24,035.8)
2015
Business-type Activities
2016
85.9
$ 2,502.1 $ 2,400.4
67.4
115.1
2,553.7
48.5
2,665.7
2,553.1
(2.5)
2,663.2
816.0 350.4 320.0 1,330.2 8.7
2,825.3 (162.1)
204.4
42.3 $ 204.4
2015
Total
3,215.2 496.7 335.0
1,179.4 2,574.8
815.2 330.8 8,947.1
2016
3,381.8 516.7 336.6
1,264.5 2,830.7
8,947.1
782.0 292.8 9,405.1
6,238.0 3,192.2 253.4 471.7 119.2 118.8 861.3 900.3 505.0 315.7 1,380.5 8.7
14,364.8 (5,417.7)
(18,413.7)
9,405.1
4,549.2 4,266.1 257.0 378.8 116.7 114.7 495.8 816.0 350.4 320.0 1,330.2 8.7
13,003.6 (3,598.5)
(23,831.4)
$(27,429.9) $(23,831.4)
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2016
Expenses and Program Revenues - Governmental Activities
(in millions of dollars)
400 800 1,200 1,600 2,000 2,400 2,800 3,200 3,600 4,000 4,400 4,800 5,200 5,600 6,000 6,400
? Expenses ¦Program Revenues
Revenues by Source - Governmental Activities
Capital Grants and Operating Grants and Contributions Contributions 3% 8%
Other 4%
Grants and Contributions not restricted to specific programs 11%
Property Tax 19%
Other Taxes 42%
CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2016
Business-type Activities. Total Revenues of the City's business-type activities increased by $110.2 million in 2016 mostly from an increase in charges for services and rental income, offset by a decrease in other general revenues.
The Water Fund's total operating revenues decreased by $8.0 million (1.0%) from 2015 due to a decrease in net water fees of $14.3 million due to the continued conversion from non-metered to metered accounts, offset by an increase in penalties and other revenues related to water fees of $6.3 million. Operating expenses before depreciation and amortization for the year ended 2016 decreased by $199.4 million (27.0%) from the year ended 2015 primarily due to decreases in pension expense of $196.1 million and workmen's compensation of $20.6 million offset by an increase in indirect costs of $19.2 million.
The Sewer Fund's total operating revenues decreased in 2016 by $6.8 million (1.7%) primarily due to the continued conversion of non-metered customers to metered customers. There was no rate increase during 2016. Operating expenses before depreciation and amortization for 2016 decreased $82.7 million (26.6%) from the year ended 2015 primarily due to the decrease of pension expense calculated under Governmental Accounting Standards Board Statement No. 68, "Accounting and Financial Reporting for Pensions, an amendment of GASB Statement 27" ("GASB 68").
Chicago Midway International Airport's total operating revenues for 2016 increased by $6.1 million (3.4%) from 2015 primarily due to increases in the landing fee and terminal rental rates, and increases in concession revenues. Operating expenses before depreciation and amortization decreased by $1.3 million compared to 2015, primarily due to a decrease in pension expense calculated under GASB 68, offset by increases in salaries and wages and repairs and maintenance.
Chicago O'Hare International Airport's total operating revenues for 2016 increased by $102.6 million (12.1%) compared to 2015 primarily due to increases in landing fee rates and activity, concession revenues, and increases in rents. Operating expenses before depreciation and amortization decreased by $54.5 million (6.8%) compared to 2015 primarily due to a decrease in pension expense calculated under GASB 68.
The Chicago Skyway was leased for 99 years to a private company. The agreement granted the company the right to operate the Skyway and to collect toll revenue during .the term of the agreement. The City received an upfront payment of $1.83 billion of which $446.3 million was used to advance refund all of the outstanding Skyway bonds. The upfront payment is being amortized into nonoperating revenue over the period of the lease ($18.5 million annually).
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2016
Expenses and Program Revenues - Business-type Activities (in millions of dollars)
100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300 1,400
Water
Sewer
Chicago Midway International Airport Chicago-O'Hare International Airport Chicago Skyway
]
?Expenses ¦ Program Revenues
Revenues by Source - Business-type Activities
Licenses, Permits, Fines and Charges for Services 94%
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2016
Financial Analysis of the City's Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
At December 31, 2016, the City's governmental funds reported combined ending fund balances of $908.2 million, a decrease of $74.5 million in comparison with the prior year. Of this total amount, $709.8 million was committed to specific expenditures, $92.1 million was assigned to anticipated uses, a deficit of $1,673.3 million was unassigned, $1,755.9 million was restricted in use by legislation, and $23.7 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 $153.7 million with a total fund balance of $269.6 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 7.8 percent of total General Fund expenditures. The fund balance of the City's General Fund increased by approximately $54.4 million during the current fiscal year due to higher revenues and lower expenses for certain categories.
The Federal, State and Local Grants Fund has a total deficit fund balance of $242.9 million. This is $26.8 million lower than 2015 primarily due to slower reimbursement of expenditures.
The Special Taxing Areas Fund has a total fund balance of $1,309.8 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 $640.2 million committed to specific expenditures. The unassigned deficit of $1,534.2 million results from the deferred inflows from long-term asset leases.
The Bond, Note Redemption and Interest Fund has a total fund balance of $267.8 million. This is $31.5 million higher than 2015.
The Community Development and Improvement Projects Fund has a total fund balance of $45.0 million. This is $153.4 million lower than 2015 due to increased capital improvement efforts.
Changes in fund balance. The fund balance for the City's governmental funds decreased by $74.5 million in 2016. This includes a decrease in inventory of $0.1 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 $4,210.7 million. The unrestricted net position deficit increased by $479.5 million due to an increase in the unrestricted deficit in all proprietary funds primarily due to increases in the net pension liability. 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, 2016
General Fund Budgetary Highlights
The City's 2016 Original General Fund Budget of $3,633.5 million was approved by City Council on October 28, 2015, and was $99.1 million (2.8%) larger than the 2015 Final General Fund Budget. Nearly two-thirds of the increase ($62.7 million) was from a new garbage collection fee charged to residences who receive city-provided garbage collection service. General Fund revenues ended the year $64.2 million over the 2016 Final General Fund Budget as a result of higher than expected revenue from transaction, recreation, and transportation taxes. Revenue in these areas helped to offset lower than expected revenue from state income tax, home rule sales tax, and utility taxes. "Txpe'nditufe^^
government expenditures. 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, 2016 amount to $24,073.8 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:
During 2016, the City completed $382.8 million in infrastructure projects including $242.1 million in street construction and resurfacing projects, $71.6 million in street lighting and transit projects, and $69.1 million in bridge and viaduct reconstruction. At year end, infrastructure projects still in process had expenses totaling nearly $712.2 million.
At the end of 2016, the Water Fund had $4,131.6 million invested in utility plant, net of accumulated depreciation. During 2016, the Water Fund expended $395.3 million on capita! activities. This included $1.8 million for structures and improvements, $209.5 million for distribution plant, $3.5 million for equipment, and $180.5 million for construction in progress. During 2016, net completed projects totaling $48.9 million were transferred from construction in progress to applicable capital accounts. The major completed projects were installation and replacements of water mains ($20.5 million), and meter save program ($25.1 million).
At the end of 2016, the Sewer Fund had $2,456.0 million invested in utility plant, net of accumulated depreciation. During 2016, the Sewer Fund had capital additions being depreciated of $323.1 million, and completed projects totaling $70.5 million were transferred from construction in progress to applicable facilities and structures capital accounts. The 2016 Sewer Main Replacement Program completed 25.6 miles of sewer mains and 61.0 miles of relining of existing sewer mains.
At the end of 2016, Chicago-Midway International Airport had $1,182.7 million invested in net capital assets. During 2016, the Airport had additions of $62.7 million related to capital activities. This included $0.5 million for land acquisition and the balance of $62.2 million for construction projects relating to runway rehabilitation and parking improvements. During 2016, completed projects totaling $69.3 million were transferred from construction in progress to applicable buildings and other facilities capital accounts. These major completed projects were related to runway and taxi improvements, and rental car parking garage.
At the end of 2016, Chicago-O'Hare International Airport totaled $7.4 billion, invested in net capital assets. During 2016, the Airport had additions of $544.7 million related to capital activities. This included $6.1 million for land acquisition and the balance of $538^5 million for terminal improvements, parking facilities enhancements, and runway and taxiway improvements. During 2016, completed projects totaling $287.8 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, electrical system upgrades and parking facilities and terminal improvements.
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2016
City of Chicago, Illinois Capital Assets (net of depreciation) (in millions of dollars)
Governmental Business-type
Activities Activities Total
2016 2015 2016 2015 2016 2015
Land $ 1,397.3 $ 1,393.4 $ 1,027.8 $ 1,021.2 $ 2,425.1 $ 2,414.6
Works of Art and
Historical Collections 46.0 45.6 - - 46.0 45.6
Construction in Progress 741.0 656.0 1,045.0 740.4 1,786:0 1,396.4
Buildings and Other Improvements 1,585.4 1,610.7 13,028.0 12,537.0 14,613.4 14,147.7
Machinery and Equipment 239.7 231.8 296.8 308.9 536.5 540.7
Infrastructure 4,666.8 4,570.7 - - 4,666.8 4,570.7
Total $ 8,676.2 $ 8,508.2 $ 15,397.6 $ 14,607.5 $ 24,073.8 $23,115.7
Information on the City's capital assets can be found in Note 7 Capital Assets in this report.
Debt. At the end of the current fiscal year, the City had $8,654.3 million in General Obligation Bonds and $518.7 million in General Obligation Certificates and Other Obligations outstanding. Other outstanding long-term debt is as follows: $238.1 million in Motor Fuel Tax Revenue Bonds; $528.5 million of Sales Tax Revenue Bonds; $33.5 million in Tax Increment Financing Bonds; and $13,203.3 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
2016 2015 2016 2015 2016 2015
General Obligation $ 9,173.0 $ 9,364.4 $ - $ - $ 9,173.0 $ 9,364.4
Tax Increment 33.5 65.4 - - 33.5 65.4
Revenue Bonds 766.6 754.0 13,203.3 13,050.4 13,969.9 13,804.4
Total $ 9,973.1 $ 10,183.8 $ 13,203.3 $ 13,050.4 $ 23,176.4 $ 23,234.2
During 2016, the City issued the following: General Obligation Bonds:
General Obligation Refunding Bonds, Series 2015C Tax-Exempt ($500.0 million). Enterprise Fund Revenue Bonds and Notes:
Chicago-O'Hare International Airport General Commercial Paper Notes ($0.1 million).
Chicago-O'Hare International General Airport Senior Lien Revenue Refunding Bonds, Series 2016A (AMT), Series 2016B (Non-AMT), and Series 2016C (Non-AMT) ($1,014.3 million).
Chicago-Midway International Airport Second Lien Revenue and Revenue Refunding Bonds Series 2016A (AMT) and Series 2016B (Non-AMT) ($342.4 million).
Second Lien Water Revenue Bonds, Series 2016 A-1 & A-2 ($81.7 million).
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2016
At December 31, 2016 the City had credit ratings with each of the four major rating agencies as follows:
cjianQarQ a Poors
General Obligation: City
Revenue Bonds:
O'Hare Airport: Senior Lien General Airport Revenue Bonds Senior Lien Passenger Facility Charge (PFC) Customer Facility Charge (CFC)
Midway Airport: First Lien Second Lien
Water: First Lien Second Lien
Wastewater: First Lien Second Lien
Sales Tax
Motor Fuel Tax
Ba1
A2 A2 Baal
A2 A3
Baal Baa2
Baa2 Baa3
Ba1
Ba1
BBB+
A A
BBB
A A
A+ A
A+ A
AA
BBB-
BBB-
A A
NR
A A
AA+ AA
NR AA
BBB-
BBB
BBB+
A+ NR NR
NR A
NR AA
NR AA-
AA+
NR
See Subsequent Events in the footnotes for ratings changes in 2017. Economic Factors and Next Year's Budgets and Rates
Regional, national, and global economies play a major role in the City's finances and economic growth. The economy both locally and nationally continued to grow at a modest pace in 2016. Nationally, unemployment continued to decline as wages grew at a faster pace. Across the country and in Chicago, home prices continued to rise amid tightening inventory. Locally, median home prices increased 4 percent over 2015 while the number of homes sold was 2 percent higher. Tourism and business travel to Chicago grew in 2016 as the City welcomed a record number 54.1 million tourists, which helped spur growth in tourist-related revenues like amusement and restaurant sales taxes.
The City's 2017 General Fund Budget, totaling $3,743.2 million, was approved unanimously by a 48 to 0 vote of City Council on November 16, 2016. The 2017 budget balanced an operating budget shortfall of $137.6 million by reforming and cutting spending, and revenue growth. The 2017 budget includes a $5 million deposit into the City's operating liquidity fund, which is part of the City's practice of adding to its budget stabilization funds.
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CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2016
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, 2016
(Amounts are in Thousands of Dollars)
Governmental Activities
ASSETS AND DEFERRED OUTFLOWS
Cash and Cash Equivalents $ 223,829
Investments 1,333,554
Cash and Investments with Escrow Agent 506,804
Receivables (Net of Allowances):
Property Tax 1,739,062
Accounts 1,025,162
Internal Balances r (54,659)
Inventories 23,730
Restricted Assets:
Cash and Cash Equivalents 20,124
Investments 618,204
Interest Receivable
Other Assets 15,234
Capital Assets:
Land, Art, and Construction in Progress 2,184,335
Other Capital Assets, Net of Accumulated Depreciation 6,491,918
Total Capital Assets 8.676.253
Total Assets 14,127,297
Deferred Outflows 5,667,882
Total Assets and Deferred Outflows $ 19,795,179
LIABILITIES AND DEFERRED INFLOWS
Voucher Warrants Payable $ 601,617
Short-term Debt 672
Accrued Interest 224,746
Accrued and Other Liabilities 1,020,768
Unearned Revenue 99,780
Derivative Instrument Liability
Long-term Liabilities:
Due Within One Year 302,409
Due in More Than One Year 42,762,995
Total Liabilities 45,012,987
Deferred Inflows 2,254,451
Total Liabilities and Deferred Inflows 47,267,438
NET POSITION
Net Investment in Capital Assets (65,466)
Restricted for:
Capital Projects 70,020
Debt Service 889,678
Special Taxing Areas 1,309,819
Passenger Facility Charges
Contractual Use Agreement
Airport Development Fund
Customer Facility Charges
Other Purposes
Unrestricted (Deficit) (29,676,310)
Total Net Position $ (27,472,259)
Primary Government
Total
531,494 1,911,611 506,804
1,739,062 1,403,273
46,958
1,619,194 2,431,785 11,053 66,022
4,257,043 19,816,765 24.073.808 34,341,064
Business-type Activities
f 307,665 578,057
378,111 54,659 23,228
1,599,070 1,813,581 11,053 50,788
1,285,451
2,072,708 13,324,847 15.397.555 20,213,767
6,953,333
1,134,688 672 484,409 1,321,068 320,123 26,034
744,911 60,671,800
$ 21,499,218 $ 41,294,397
533,071 $
259,663 300,300 220,343 26,034
64,703,705 4,020,611
68,724,316
442,502 17,908,805
19,690,718 1,766,160
3,307,597
264,287 909,493 1,309,819 181,472 176,967 238,021 37,110 32,282 (33,886,967)
21,456,878
3,373,063
194,267 19,815
181,472 176,967 238,021 37,110 32,282 (4,210,657)
42.340 $ (27.429.919)
See notes to basic financial statements.
Exhibit 2
CITY OF CHICAGO, ILLINOIS STATEMENT OF ACTIVITIES Year Ended December 31, 2016 (Amounts are in Thousands of Dollars)
Licenses, Permits, Fines and Charges for Services
Primary Government
Governmental Activities:
General Government $
Public Safety
Streets and Sanitation
Transportation
Health
Cultural and Recreational
Interest on Long-term Debt
Total Governmental Activities
4,549,261 4,266,146 256,985 378,779 116,692 114,676 495,856
10,178,395
501,468 202,379 100,996
52,524 7,232
15,122
879,721
Business-type Activities:
Water 816,012 761,411
Sewer 350,388 368,966
Chicago Midway International Airport 320,033 232,483
Chicago-O'Hare International Airport 1,330,240 1,139,380
Chicago Skyway 8,651 -
Total Business-type Activities 2,825,324 2,502,240
Total Primary Government $ 13,003,719 $ 3,381,961
See notes to basic financial statements.
32
Program Revenues Net (Expense) Revenue and Changes in Net Position
Primary Government
Operating Capital
Grants and Grants and Governmental Business-type
Contributions Contributions Activities Activities Total
369,857 51,174
85,851 9,846
516,728
(3,677,936) (4,012,593) (155,989) (104,723) (23,609) (89,708) (495,856) (8,560,414)
(3,677,936) (4,012,593) (155,989) (104,723) (23,609) (89,708) (495,856) (8,560,414)
16,639 27,903 70,664
115,206
(54,601) 35,217 (59,647) (120,196) (8,651)
(207,878)
(54,601) 35,217 (59,647) (120,196) (8,651)
(207,878)
(8,560,414)
General Revenues Taxes:
Property Tax 1,264,473
Utility Tax 557,992
Sales Tax 347,131
Transportation Tax 449,744
Transaction Tax 542,896
Special Area Tax 537,026
Recreation Tax 246,608
Other Taxes 149,281
Grants and Contributions not Restricted to
Specific Programs 781,968
Unrestricted Investment Earnings 30,400
Miscellaneous 213,903
Transfers 2,540
Total General Revenues and Transfers 5,123,962
Change in Net Position (3,436,452)
Net Position - Beginning (24,035,807)
Net Position - Ending $ (27,472,259)
13,196 35,201 (2,540)
45,857
(162,021) 204,361
42,340
1,264,473 557,992 347,131 449,744 542,896 537,026 246,608 149,281
781,968 43,596 249,104
5,169,819" (3,598,473) (23,831,446) $ (27,429,919)
33
Exhibit 3
CITY OF CHICAGO, ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2016
(Amounts are in Thousands of Dollars)
General
ASSETS
Cash and Cash Fquivalents : $ 2,856
Investments 94,730
Cash and Investments with Escrow Agent
Receivables (Net of Allowances):
Property Tax
Accounts 237,311
Due From Other Funds 119,312
Due From Other Governments 270,907
Inventories 23,730
Restricted Cash and Cash Equivalents
Restricted Investments
Other Assets -
Total Assets $ 748,846
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities:
Voucher Warrants Payable ". '. $ 191,990
lOo, nuiw Cii Ivj v-/ li I I wL/ii^uliJi iO i CiyCiksivs vui i Ci u
Accrued Interest
Due To Other Funds 129,311
Accrued and Other Liabilities 125,788
Claims Payable 19,176
Unearned Revenue 1,790
Total Liabilities .• 468,055
Deferred Inflows 11,209
Fund Balance:
Nonspendable 23,730
Restricted
Committed
Assigned 92,115
Unassigned 153,737
Total Fund Balance 269,582
Total Liabilities, Deferred Inflows and Fund Balance $ 748,846
Special Taxing Areas
111,335 847,042
Federal, State and Local Grants
473,173 21,491 286,527
108,351
4,630 25,908 425,126
3,218
4,075
$ 571,308 $ 1,739,568
$ 169,952 $ 43,854
281,017 12,143 12,203 2,596
58,593
97,990
253,053
561,162
371,156
1,309,819
11,054
(253,961) (242,907)
1,309,819
$ 571,308 $ 1,739,568
See notes to basic financial statements.
Service Community
Concession Bond, Note Development Nonmajor Total
and Redemption and Improvement Governmental Governmental
Reserve and Interest Projects Pension Funds Funds
$ - $ 63,032 $ - $ 21,310 $ 25,296 $ 223,829
21,708 110,532 43,011 108,180 1,333,554
423,217 - - 83,587 506,804
490,441 - 755,216 20,232 1,739,062
5,131 2,424 1,730 405 16,046 289,168
2,103 18,434 - 91,712 543,996
1,848 - - 38,113 735,994
23,730
16,906 - ... 20,124
618,204 - ... 618,204
: : - - - 4,075
$ 640,241 $ 1,004,773 $ 130,696 $ 819,942 $ 383,166 $ 6,038,540
$ - $ - $ 44,373 $ 64,937 $ 64,340 $ 579,446
123,384 - - - 123,384
223,688 - - 1,058 224,746
39,537 155,884 136,647 754,539
1,754 - 13,142 155,483
19,176
: - - - - 99,780
- 347,072 85,664 220,821 215,187 1,956,554
1,534,227 389,880 - 599,121 15,122 3,173,768
23,730
267,821 45,032 - 122,188 1,755,914
640,241 - - - 69,528 709,769
92,115
(1,534,227) - - - (38,859) (1,673,310)
(893,986) 267,821 45,032 - 152,857 908,218
$ 640,241 $ 1,004,773 $ 130,696 $ 819,942 $ 383,166 $ 6,038,540
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 8,676,253
Other long-term assets are not available to pay for current-period
expenditures and therefore are recorded as deferred inflows in the funds 1,639,541
Certain liabilities, including bonds payable, and deferred outflows are not due and payable
in the current period and therefore are not reported in the funds (38,696,271)
Net position of governmental activities $ (27,472,259)
35
Exhibit 4
CITY OF CHICAGO, ILLINOIS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended December 31, 2016 (Amounts are in Thousands of Dollars)
General
¦Revenues:- ¦ ¦ - • ¦¦¦¦=-:-:-- -
Property Tax $
Utility Tax 434,409
Sales Tax (Local) 308,089
Transportation Tax 247,100
State Income Tax 413,673
State Sales Tax 366,426
Transaction Tax 463,607
Special Area Tax
Recreation Tax 246,608
Other Taxes 123,108
Federal/State Grants 1,869
Internal Service 342,606
Licenses and Permits 130,399
Fines 318,388
investment Income 8,251
Charges for Services 192,672
Miscellaneous 85,407
Total Revenues 3,682,612
993,682 29,430 2,195,201 195,310 35,421 482
2,860
Expenditures: Current:
Genera! Government '.
Health
Public Safety
Streets and Sanitation
Transportation
Cultural and Recreational
Employee Pensions
Other
Capital Outlay
15,874 4,948
Debt Service:
Principal Retirement
Interest and Other Fiscal Charges
Total Expenditures 3,473,208
Revenues Over (Under) Expenditures 209,404
Federal, State and Locai Grants
743,734
743,734
374,758 86,905 62,568
214,819 9,815
620 47,760
797,245
(53,511)
Special Taxing Areas
494,782
832 318
495,932
335,740
15 63,393
2,164
401,312
94,620
Continued on following pages.
Service Concession and Reserve
18,980 21,033
40,013
Bond, Note Redemption and Interest
546,106 22,323 39,042 10,979
85
2,474 3,231 18,193
642,433
Community Development
and Improvement Projects
439 15,367
15,806
Pension
$ 747,957 $
16
50,937
798,910
Nonmajor Governmental Funds
101,260 191,665
79,289 22,104
26,088
34,289
19,381 (1,349) 29,293 22,610
524,630
Total Governmental Funds
1,294,063 557,992 347,131 449,744 413,673 366,426 542,896 516,886 246,608 149,281 745,603 376,895 132,873 337,769 30,400 221,965 213,865
6,944,070
21 342,195 2,046,396
81 116,416
7,444 2,265,213
52,704 248,029
88,844 402,477
83,733 94,030
810,497 - 810,497
606 4,086
169,360 - 68,898 286,018
578,891 - - 63,090 660,019
457,856 - - 20,664 483,468
21 1,036,747 169,360 810,497 728,259 7,416,649
39,992 (394,314) (153,554) (11,587) (203,629) (472,579)
37
Exhibit 4 - Concluded
CITY OF CHICAGO, ILLINOIS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended December 31, 2016 (Amounts are in Thousands of Dollars)
Federal, State and Local Grants
Special Taxing Areas
Other Financing Sources (Uses):
Issuance of Debt $
Issuance of Line of Credit
Premium/(Discount)
Payment to Refunded Bond Escrow Agent
Transfers In 14,998
Transfers Out (169,955)
Total Other Financing (Uses) Sources (154,957)
Net Changes in Fund Balance 54,447
Fund Balance, Beginning of Year 215,232
Change in Inventory (97)
Fund Balance, End of Year $ 269,582
30,746
(4,000)
26,746
(26,765) (216,142)
(242,907) $
14,623 (75,133)
(60,510)
34,110 1,275,709
1,309,819
See notes to basic financial statements.
Service Concession Agreements and Reserve
Bond, Note Redemption and Interest
Community Development
and Improvement Projects
Nonmajor Governmental Funds
Total Governmental Funds
500,000 337,140 23,892 (496,150) 150,104 (89,145)
13,700 (13,545)
170,778 (21,472)
530,746 337,140 23,892
(496,150) 375,790
(373,250)
398,168
39,992 (933,978)
31,527 236,294
(153,399) 198,431
(54,323) 207,180
(74,411) 982,726 (97)
$ (893,986) $ 267,821 $
39
Exhibit 5
CITY OF CHICAGO, ILLINOIS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended December 31, 2016 (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 $ (74,411)
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 165,127
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds 15,613
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 249,388
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 (3,792,169)
Change in the net position of governmental activities $ (3,436,452)
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, 2016 (Amounts are in Thousands of Dollars)
Revenues:
Utility Tax $
Sales Tax
Transportation Tax
Transaction Tax
Recreation Tax
Other Taxes
State Income Tax
State Sales Tax
Federal/State Grants
Internal Service
Licenses and Permits
Fines
Investment Income
Charges for Services
Miscellaneous
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
Revenues Over Expenditures $
Original Budget
441,000 315,883 240,445 344,700 218,016 118,300 435,700 361,900 1,800 358,542 125,223 350,500 4,400 184,968 106,078 26,000
3,633,455
1,213,785 30,426
2,114,336 201,167 56,460
11,135 6,146
3,633,455
Final Budget
441,000 315,883 240,445 344,700 218,016 '118,300 435,700 361,900 1,800 358,542 125,223 350,500 4,400 184,968 106,078 26,000
3,633,455
1,217,680 30,426
2,114,336 201,167 52,565
11,135 6,146
3,633,455
Variance
(6,591) (7,794) 6,655 118,907 28,592 4,808 (22,027) 4,526 69
(15,936) 5,176
(32,112) 3,851 7,704
(20,671)
(11,002)
1,076,837 28,913
2,191,829 195,342 51,589
11,135 4,948
3,560,593
64,155
140,843 1,513
(77,493) 5,825 976
1,198 72,862
$ 137,017 $ 137,017
See notes to basic financial statements.
Exhibit 7
CITY OF CHICAGO, ILLINOIS STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2016
(Amounts are in Thousands of Dollars)
Business-type Activities - Enterprise Funds
Major Funds
Water
ASSETS AND DEFERRED OUTFLOWS CURRENT ASSETS:
Cash and Cash Equivalents $ 141,931
Investments 361,553
Accounts Receivable (Net of
Allowances) 168,527
Interest Receivable 133
Due from Other Funds 35,906
Inventories 22,236
Cash and Cash Equivalents - Restricted 74,158
Investments - Restricted 102,254
Interest Receivable - Restricted 411
Other Assets - Restricted
TOTAL CURRENT ASSETS 907,109
NONCURRENT ASSETS:
Cash and Cash Equivalents - Restricted
Investments - Restricted 39,898
Interest Receivable - Restricted
Other Assets - Restricted
Due from Other Governments - Restricted
Other Assets 4,425
Property, Plant, and Equipment:
Land 6,858
Structures, Equipment and
Improvements 4,840,558
Accumulated Depreciation (1,082,290)
Construction Work in Progress 366,506
Total Property, Plant and Equipment 4,131,632
TOTAL NONCURRENT ASSETS: 4,175,955
TOTAL ASSETS 5,083,064
DEFERRED OUTFLOWS 473,223
TOTAL ASSETS AND
DEFERRED OUTFLOWS $ 5,556,287
Chicago- Chicago-Midway O'Hare
Total
International-... International. ^Chicago
122,340 $ 478 72,232 998
307,665 578,057
373,037 1,103 87,256 23,228 983,023 187,370 1,471 333
Sewer Airport Airport Skyway
28
82,020 970 31,851
681,463
15,588 2,026 100,918 324
162,635
114,505 481,629 1,999 4,533 1,298 652
115,637
$ 30,301 $ 12,615 112,110 31,164
106,874
17,473 992 126,484
333
1,504
991,209
501,542 1,065,040 7,583 22,776 2,673 4,998
892,088
85,116 736
480,086
2,542,543
39,644
3,331
9,740
560
12,609
616,047 1,626,211 9,582 27,309 3,971 23,146
2,989,979 1,671,782
(570,077) (616,281)
35,498 11,550 .
9,302,810 490,817 (3,451,749) (250,702) 631,402
1,027,752
2,455,960 1,182,688
7,374,551 252,724
19,295,946 (5,971,099) 1,044,956
2,498,935
1,787,304
8,979,163 262,464
15,397,555
2,979,021 1,949,939
9,970,372
263,968
17,703,821
114,005
513,494
20,246,364
1,285,451
184,729.
$ 3,163,750 $ 2,063,944 $ 10,483,866 $ 263,968 $ 21,531,815
See notes to basic financial statements.
Business-type Activities - Enterprise Funds
Major Funds
Water
LIABILITIES CURRENT LIABILITIES:
Voucher Warrants Payable $ 20,637
Due to Other Funds 9,106
Accrued and Other Liabilities 166,682
Unearned Revenue 18,158
Current Liabilities Payable From
Restricted Assets 176,412
TOTAL CURRENT LIABILITIES 390,995
NONCURRENT LIABILITIES:
Revenue Bonds Payable 2,566,374
Line of Credit Payable
Net Pension Liability 1,626,658
Derivative Instrument Liability
Other 1,577
TOTAL NONCURRENT LIABILITIES ... 4,194,609
TOTAL LIABILITIES 4,585,604
DEFERRED INFLOWS 74,957
Chicago Skyway
91,404 $ 3,679 14,459 187,771
681,463
3,197 11,581 38,304 14,414
211,600 279,096
1,780,155 664,925
Chicago-Midway International Sewer Airport
25,900 8,216 730
388
978,776
7,424,016 12,098 1,638,864
100,783 135,629
1,878,968
316,747 26,034
- 2,015
2,445,080 2,223,764
388
9,074,978
8,404
27,102
2,724,176 2,359,393 10,053,754
47,515 1,608,182
Total
141,275 32,597 220,411 220,343
1,170,258 1,784,884
13,649,513 12,098 4,247,194 26,034 3,592
17,938,431 19,723,315
1,766,160
NET POSITION: Net Investment
in Capital Assets 1,621,976 648,644 (152,026) 1,001,744 252,725 3,373,063
Restricted Net Position:
Debt Service - - - 19,815 - 19,815
Capital Projects 411 117,295 10,703 65,858 - 194,267
Passenger Facility Charges - - 6,867 174,605 - 181,472
Contractual Use Agreement - - 31,232 145,735 - 176,967
Air Development Fund - - - 238,021 - 238,021
Customer Facility Charge - - 25,850 11,260 - 37,110
Other - - 8,396 23,886 - 32,282
Unrestricted Net Position (726,661) (353,467) (234,875) (1,298,327) (1,597,327) (4,210,657)
TOTAL NET POSITION $ 895,726 $ 412,472 $ (303,853) $ 382,597 $ (1,344,602) $ 42,340
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, 2016
(Amounts are in Thousands of Dollars)
Business-type Activities - Enterprise Funds
Major Funds
Water
Operating Revenues:
Charges for Services - Net $ 735,881
Rent
Other 25,530
Total Operating Revenues 761,411
Operating Expenses:
Personnel Services 125,893
Contractual Services 53,109
Repairs and Maintenance 1,262
Commodities and Materials 23,908
Depreciation and Amort iz3iion 6/ ,98t
General Fund Reimbursements 88,407
Pension Expense 239,962
Other 5,839
Total Operating Expenses 606,364
Operating Income (Loss) 155,047
Nonoperating Revenues (Expenses):
Investment Income (Loss) 629
Interest Expense (107,897)
Passenger Facility Charges
Customer Facility Charges
Noise Mitigation Costs
Cost of Issuance
Swap Termination Fees (101,751)
Other 605_
Total Nonoperating Revenues
(Expenses) (208,414)
Transfers Out (2,420)
Capital Grants
Net Income (Loss) (55,787)
Net Position (Deficit) -
Beginning of Year 951,513
Net Position (Deficit)-End of Year $ 895,726
-Chicago' Skyway
Total
$ 1,826,350 407,360 26,676
2,260,386
Chicago- Chicago-
Midway O'Hare
- - International -International;r;
Sewer Airport Airport
367,820 $ 87,425 $ 635,224 94,768 312,592
368,966
1,146
182,193
11,801 2,158 58,349
40,734 50,760 104,864
390,378 171,726 212,424 23,908 421,176 139,167 638,196 124,328
48,548 20,851 48,277
49,118
47,879 17,050
231,723
947,816
8,651
204,136 95,608 104,536
254,689
268,666
8,651
2,121,303
245,491 101,439
100,300 (49,530)
(8,651)
139,083
1,005,899
(1,094) (58,220)
41,665 8,625 (27,089)
(3,001)
364
(58,083)
(4)
1,025 (81,722)
18,567
12,640 (316,119) 151,634 39,930 (2,310) (5,912)
15,553
18,563
(413,770)
(2,540) 115,206
(162,021)
112
(80,585) (38,750) (104,584)
27,903
70,664
36,234
(120) 16,639
(60,377)
(92,003)
376,238 (243,476)
474,600
204,361
9,912 (1,354,514)
$ 412,472 $ (303,853) $ 382,597 $ (1,344,602) $ 42,340
notes to basic finar ICiSi Statements.
Exhibit 9
CITY OF CHICAGO, ILLINOIS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Year Ended December 31, 2016 (Amounts are in Thousands of Dollars)
Business-type Activities - Enterprise Funds
Major Funds
Water
Cash Flows from Operating Activities:
Received from Customers $ 764,497
Payments to Vendors (84,493)
Payments to Employees (126,309)
Transactions with Other City Funds (115,919)
Cash Flows Provided By
Operating Activities 437,776
Cash Flows from Capital and Related Financing Activities:
Proceeds from Issuance of Bonds/IEPA Loans 219,254
Acquisition and Construction of
Capital Assets (384,178)
Capital Grant Receipts
Bond Issuance Costs (3,112)
Payment to Refund Bonds
Principal Paid on Debt (70,281)
Interest Paid (100,722)
Passenger and Customer Facility Charges
Swap Termination Fees (101,751)
Concessionaire Funds
Cash Flows (Used in) Provided By Capital
and Related Financing Activities (440,790)
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:
(Purchases) Sale of Investments, Net (107,225)
Investment Income (Loss) 3,843
Cash Flows (Used in) Provided By
Investing Activities (103,382)
Net (Decrease) Increase in Cash and
Cash Equivalents (106,396)
Cash and Cash Equivalents, Beginning of Year 322,485
Cash and Cash Equivalents, End of Year $ 216,089
Chicago Skyway
Sewer
Total
367,632 $ (29,871) (43,665) (46,671)
177,236 (76,572) (46,822) (11,882)
2,301,118 (478,300) (397,752) (242,427)
Chicago-O'Hare International Airport
226
247,425
41,960
226
i 991,753 (287,590) (180,956) (67,955)
455,252
54,170
(210,909) 16,639
394,848
(58,504) 30,314 (3,002) (41,713) (23,470) (59,681) 48,822
1,182,016
(423,778) 68,340 (5,912) (1,058,503) (221,220) (394,869) 193,743
1,182,639
1,850,288
(47,529) (79,525)
79
(267,154)
287,614
79
(1,077,369)
115,293
(12,026)
(1,100,216)
(362,500)
(634,797)
242,565
(101,751)
79_
(1,080,434)
(27,089) 364
(29,399) 1,071
(660,183)
(26,725)
(28,328)
(2,310) 707
(2,635) 1,941
(245,356) 1,793
(255,322) 4,421
(717) (25)
(1,603)
(694)
(243,563)
(742)
(250,901)
100,611 (3,131)
(20,423) 177,208
59,286 168,752
(437) 915
(177,024) 2,083,759
97,480
(109,054) 1,414,399
$ 156,785 $ 228,038 $ 1,305,345 $ 478 $ 1,906,735
See notes to basic financial statements.
Exhibit 9 - Concluded
CITY OF CHICAGO, ILLINOIS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Year Ended December 31, 2016
(Amounts are in Thousands of Dollars)
Business-type Activities - Enterprise Funds
Major Funds
Chicago- Chicago-
Midway O'Hare
International '' International'"''' "Chicago
Airport Airport Skyway
Reconciliation of Operating Income to Cash Flows from Operating Activities:
Operating Income (Loss)
Adjustments to Reconcile:
Depreciation and Amortization
Pension Expense Other than Contribution
Provision for Uncollectible Accounts
Change in Assets and Liabilities:
(Increase) Decrease in Receivables
(Increase) Decrease in Due From Other Funds (Decrease) Increase in Voucher Warrants
Payable and Due to Other Funds
Increase (Decrease) in Unearned Revenue
and Other Liabilities
Increase in Inventories and
Other Assets
Cash Flows from
Operating Activities
254,689 217,986
$ 139,083
421,176 587,260 40,687
(25,225) 6,816
(11,846)
27,752
(3,064)
40,734 100,447 16,320
(16,135) 8,719
663
(3,439)
(184)
49,118 41,188 (390)
1,255 650
5,164
(5,432)
(63)
$ 155,047 $ 100,300 $ (49,530) $ (58,083) $
9,628 (319)
(1,685)
34,308
(1,272)
67,984 227,639 24,757
(10) 236
(19,973) (2,234)
(15,978)
2,079
(1,545)
$ 437,776 $ 247,425 $ 41,960 $ 455,252 $ 226 $ 1,182,639
Supplemental Disclosure of Noncash Items:
Capital asset additions in 2016 have outstanding accounts payable
and accrued and other liabilities $ 69,532 $ 120,819 $ 33,335 $ 197,167 $ $ 420,853
See notes to basic financial statements.
46
Exhibit 10
CITY OF CHICAGO, ILLINOIS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS December 31, 2016
(Amounts are in Thousands of Dollars)
Pension Trust Agency
ASSETS
Cash and Cash Equivalents $ 188,696 $ 147,723
Investments 8,552,287 152,540
Cash and Investments with
Escrow Agent - 9,188
Property Tax Receivable - 91,113
Accounts Receivable, Net 884,688 80,667
Due From City 155,884
Property, Plant, Equipment and other 234
Invested Securities Lending Collateral 661,063 . -
Total Assets $ 10,442,852 $ 481,231
LIABILITIES
Voucher Warrants Payable $ 292,454 $ 42,437
Accrued and Other Liabilities - 438,794
Securities Lending Collateral 661,063 -
Total Liabilities $ 953,517 $ 481,231
Deferred Inflows $ 1,333 $
Total Liabilities and Deferred Inflows $ 954,850 $ 481,231
NET POSITION
Restricted for Pension Benefits 9,488,002
Total Net Position $ 9,488,002
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, 2016 (Amounts are in Thousands of Dollars)
Total
ADDITIONS Contributions:
Employees $ 298,073
—City- -.v.::::-•-:f::::-v::,-:--v.:—...-.>...r.v-:.:- • -607,57-2--
Total Contributions 905,645
Investment Income: Net Appreciation in
Fair Value of Investments 370,918
Interest, Dividends and Other 213,775
Investment Expense (43,697)
Net Investment Income 540,996
Securities Lending Transactions:
Securities Lending Income 3,819
Securities Lending Expense (399)
Net Securities Lending Transactions 3,420
Total Additions 1,450,061
2,027,029 19,164
2,046,193 (596,132)
DEDUCTIONS
Benefits and Refunds of Deductions
Administrative and General
Total Deductions
Net Increase in Net Position
10,084,134
Net Position:
Beginning of Year
End of Year $ 9,488,002
See notes to basic financial statements.
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
1) Summary of Significant Accounting Policies
The City of Chicago (City), incorporated in 1837, is a "home rule" unit under State of Illinois 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, 2016, the City adopted the following GASB Statements:
GASB Statement No. 72 Fair Value Measurement and Application ("GASB 72"), addressed accounting and financial reporting issues related to fair value measurements. The City adopted GASB 72 for the year ended December 31, 2016. This Statement provided guidance for determining a fair value measurement for financial reporting purposes and the related disclosures. This Statement required 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 established a hierarchy of inputs to valuation techniques used to measure fair value. This Statement also required disclosures to be made about fair value measurements, the level of fair value hierarchy, and valuation techniques (see Notes 4 and 10).
GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments ("GASB 76"), supersedes Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. The City adopted GASB 76 for the year ended December 31, 2016. There was no impact on the City's Financial Statements as a result of the implementation of GASB 76.
GASB Statement No. 77, Tax Abatement Disclosures ("GASB 77"), required governments that enter into tax abatement agreements to disclose: (1) Brief descriptive information concerning the agreement; (2) The gross dollar amount of taxes abated during the period; and 3) Commitments made by government, other than to abate taxes, that are part of the tax abatement agreement. The City adopted GASB 77 for the year ended December 31, 2016 (see Note 17).
Other accounting standards that the City is currently reviewing for applicability and potential impact on the financial statements include:
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions ("GASB 75"), replaces the requirements of Statements No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans, for OPEB. GASB 75 will be effective for the City beginning with its year ending December 31, 2018. This Statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. In addition, this Statement details the recognition and disclosure . requirements for employers with payables to defined benefit OPEB plans that are administered through trusts that meet the specified criteria and for employers whose employees are provided with defined contribution OPEB.
GASB Statement No. 80, Blending Requirements for Certain Component Units, ,an amendment of GASB Statement No. 14 ("GASB 80"), amends the blending requirements for the financial statement presentation of component units of all state and local governments. GASB 80 will be effective for the City beginning with its year'ending December 31, 2017
GASB Statement No. 82, Pension Issues, an amendment of GASB Statements No. 67, No. 68, and No. 73 ("GASB 82"), addresses issues regarding (1) the presentation of payroll-related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of
49
pitv /~\rr /¦»iji/¦» a/¦*r-v n i ikiAto
Oil I \Jt~ UlllV^nOU, IL.L.IIXUIO
NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2016
payments made by employers to satisfy employee (Plan member) contribution requirements. GASB 82 will be effective for the City beginning with its year ending December 31, 2017.
GASB Statement No. 83, Certain Asset Retirement Obligations - ("GASB 83"), addresses accounting and financial reporting for certain asset retirement obligations (AROs). A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets will have to recognize a liability based=on the guidance in this- statement. This* Statement-also-requiressdiselosure of information about the nature of a government's AROs, the methods and assumptions used for the estimates of the liabilities, and the estimated remaining useful life of the associated tangible capital assets. GASB 83 will be effective for the City beginning with its year ending December 31, 2019.
GASB Statement No. 84, Fiduciary Activities - ("GASB 84") will improve the guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. GASB 84 will be effective for the City beginning with its year ending December 31, 2019.
GASB Statement No. 85, Omnibus - ("GASB 85") the objective of this Statement is to address practice issues that have been identified during implementation and application of certain GASB Statements. The statement addresses various miscellaneous issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits (OPEB). GASB 85 will be effective for the City beginning with its year ending December 31, 2018.
GASB Statement No. 86, Certain Debt Extinguishment Issues - ("GASB 86") establishes accounting and financial reporting for in-substance defeasance of debt by providing guidance for transactions in which cash and other monetary assets acquired with only existing resources (resources other than the proceeds of refunding debt) are placed in an irrevocable trust for the sole purpose of extinguishing debt. GASB 86 will be effective for the City beginning with its year ending December 31, 2018.
a) Reporting Entity - The City includes the Chicago Public Library. The financial statements for the City have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), applicable to governmental units, as required by the Municipal Code of Chicago (Code).
The City's financial statements include the following legal entities as fiduciary trust funds:
The Municipal Employees' Annuity and Benefit Fund of Chicago is governed by a five-member board: three members are elected by plan participants and two are members ex-officio.
The Laborers' and Retirement Board Employees' Annuity and Benefit Fund of Chicago is governed by an eight-member board: two members are elected by plan participants, two are members ex-officio, two members are appointed by the City Department of Human Resources, one member is elected by retired plan participants and one member is elected by the local labor union.
The Policemen's Annuity and Benefit Fund of Chicago is governed by an eight-member board: four members are elected by plan participants and four are appointed by the Mayor.
The Firemen's Annuity and Benefit Fund of Chicago is governed by an eight-member board: four members are elected by plan participants and four are members ex-officio.
Financial statements for each of these four pension plans (collectively,"Pension Plans") may be obtained at the respective Pension Plans' office.
Related Organizations - City officials are responsible for appointing a voting majority of the members of the boards of other organizations, but the City's accountability for these organizations does not extend beyond making appointments and no financial accountability or fiscal dependency exists between the City and these
50
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
organizations. Therefore, the Chicago Park District, Chicago Public Building Commission, Chicago Public Schools, Community College District No. 508, Chicago Housing Authority and the Chicago Transit Authority are deemed to be related organizations.
Government-wide and fund financial statements - The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on user fees and charges for services.
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.
Measurement focus, basis of accounting, and financial statement presentation - The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement ' focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 90 days of the end of the current fiscal period with the exception of property tax revenue, which is recorded as deferred inflows unless taxes are received within 60 days subsequent to year-end. Licenses and permits, charges for services and miscellaneous revenues are not considered to be susceptible to accrual and are recorded as revenues when received in cash. All other revenue items are considered to be measurable and available only when cash is received by the City. Expenditures generally are recorded when a liability is incurred, as under the accrual basis of accounting, except for interest and principal on long-term debt, the long-term portion of compensated absences, claims and judgments, and pension obligations.
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund.
Federal, State and Local Grants Fund accounts for the expenditures for programs, which include general government, health, public safety, transportation, aviation, cultural and recreational, and capital outlays. The majority of revenues are provided by several agencies of the Federal government, departments of the Illinois State government and City resources.
Special Taxing Areas Fund accounts for expenditures for special area operations and maintenance and for redevelopment project costs as provided by tax levies on special areas.
51
NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2016
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.
~™ Bc^drNbte^Redemptib^
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.
Pension Fund accounts for the City's contribution to the City's four Employees' Annuity and Benefit Funds as provided by the tax levy and other sources of revenue, including the allocable share from Enterprise Funds and Special Revenue Funds.
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 has authority to assign amounts related to certain legal obligations outside of the appropriation process within the General Fund. Within the other governmental fund types (special revenue, debt service, and capital projects) resources are assigned in accordance with the established fund purpose and approved appropriation. Residual fund balances in these fund types that are not restricted or committed are reported as assigned.
Unassigned includes the residual fund balance that has not been restricted, committed, or assigned within the General Fund and deficit fund balances of other governmental funds.
The City reports the following major proprietary funds as business-type activities:
Water Fund accounts for the operations of the Chicago Water System (Water). The Water system purifies and provides Lake Michigan water for the City and 125 suburbs. The Water Fund operates two water purification facilities with a combined output pumping capacity of 2,160 million gallons per day and 12 pumping stations with a combined pumping capacity of 3,661 million gallons per day.
Sewer Fund accounts for the operations of the Wastewater Transmission System (Sewer). The Sewer system transports wastewater to the Metropolitan Water Reclamation District of Greater Chicago for processing and disposal. This service is provided for the residents and businesses of the City and certain
52
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
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 167 gates, serve domestic flights and certain international departures as of December 2016. The International Terminal, having a total of 21 gates and four 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 of the agreement. The City received a one-time upfront payment of $1.83 billion.
Additionally, the City reports the following fiduciary funds:
Pension Trust Funds report expenditures for employee pensions as provided by employee and employer contributions and investment earnings.
Agency Funds account for transactions for assets held by the City as agent for certain activities or for various entities. Payroll deductions and special deposits are the primary transactions accounted for in these funds.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payment-in-lieu of taxes and other charges between the City's water, sewer, airports and skyway funds. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include: (1) charges to customers or applicants for goods and services, or privileges provided, or fines; (2) operating grants and contributions; and (3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Certain indirect costs have been included as part of the program expenses reported for the various functional activities.
In the fund financial statements, proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the water and sewer funds are charges to customers for sales and services. The airport funds' principal operating revenues are derived from landing fees and terminal use charges as well as rents and concessions. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources, as they are needed.
The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and
53
ui i i ur oniuMuu, il.i_iini_;io
NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2016
liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates.
d) Assets, liabilities, deferred inflows, deferred outflows, and net position or equity
i) Cash, Cash Equivalents and Investments generally are held with the City Treasurer as required by the Code. Interest earned on pooled investments is allocated to participating funds based upon their average combined cash and investment balances. Due to contractual. agreements -or- legal restrictions, the cash and investments of certain funds are segregated and earn and receive interest directly. The City uses separate escrow accounts in which certain tax revenues are deposited and held for payment of debt.
The Code permits deposits only to City Council-approved depositories, which must be regularly organized state or national banks and federal and state savings and loan associations, located within the City, whose deposits are federally insured.
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 or equal to one year are reported at amortized cost.
The City's four retirement plans are authorized to invest in bonds, notes, and other obligations of the U.S. Government; corporate debentures and obligations; insured mortgage notes and loans; common and preferred stocks; stock options; real estate; and other investment vehicles as set forth in the Illinois Compiled Statutes. These investments are reported at fair value.
Repurchase agreements can be purchased only from banks and certain other institutions authorized to do business in the State. The City Treasurer requires that securities that are pledged to secure these agreements have a fair value equal to the cost of the repurchase agreements plus accrued interest.
Investments generally may not have a maturity date in excess of thirty years from the date of purchase. Certain other investments are held in accordance with the specific provisions of applicable ordinances.
Cash equivalents include certificates of deposit and other investments with maturities of three months or less when purchased.
Deficit cash balances result in interfund borrowings from the aggregate of funds other than escrowed funds. Interest income and expense are generally not recognized on these interfund borrowings.
State statutes, the City and the City's Pension Plans' policies permit lending 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.
Securities Lending by the Pension Plans - The State Statutes and the Board of Trustees permit the Pension Plans to lend its securities to broker-dealers and other entities with a simultaneous agreement to return collateral for the same securities in the future. The Plans' custodians, acting as the lending agent, lends securities for collateral in the form of cash, U.S. Government obligations and irrevocable letters of credit equal to 102% of the fair value of domestic securities plus accrued interest and 105% of the fair value of foreign securities plus accrued interest. The Plan does not have the right to sell or pledge securities received as collateral unless the borrower defaults. All securities loans can be terminated on
54
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
demand within a period specified in each agreement by either the Funds or the borrowers. The contracts with the Fund's custodian require the securities lending agent to indemnify the Funds.
Municipal Employees' - The average term of securities loaned was 54 days at December 31, 2016. The cash collateral is invested in tri-party repurchase agreements and bank deposits which had a weighted average maturity of 28 days at December 31, 2016.
Laborers' Employees' - The average term of securities loaned was 88 days at December 31, 2016. Cash collateral may be invested in a short-term investment pool, which had a weighted average maturity of 16 days at December 31, 2016.
Policemen's Employees' - The average term of the Fund's loan was approximately 1 day as of December 31, 2016. Cash collateral was reinvested in indemnified repurchase agreements which had a interest sensitivity of 83.55 days at December 31, 2016.
Firemen's Employees' - The average term of securities loaned was 48 days in 2016. Cash collateral may be invested in a short-term investment pool, which had a weighted average maturity of 28 days at December 31, 2016.
Receivables and Payables activity between funds are representative of services rendered, outstanding at the end of the fiscal year, and are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances."
All trade and property tax receivables are shown net of an allowance for uncollectibles. The allowance is based on historical trends. The estimated value of services provided but unbilled at year-end has been included in receivables.
Inventory includes government-wide inventories, which are stated at cost determined principally, using the average cost method. For proprietary funds, the costs of inventories are recorded as expenses when used (consumption method). Governmental fund inventories are accounted for using the purchases method and represent nonspendable resources because they do not represent expendable available financial resources.
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 aquisition value at the date of donation.
55
CITY OF CHICAGO ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' iives 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 $1,096.6 million, of which ~ $49'21 million
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 10 - 40 years
30 years 10- 40 years 25 years
10- 25 years 25 - 40 years 5-20 years
The City has a collection of artwork and historical treasures presented for public exhibition and education that are being preserved for future generations. The proceeds from sales of any pieces of the collection are used to purchase other acquisitions. A portion of this collection is not capitalized or depreciated as part of capital assets.
Deferred Outflows represent unamortized loss on bond refundings, the fair value of derivative instruments that are deemed to be effective hedges, differences between estimated and actual investment earnings related to pensions, changes in actuarial assumptions related to pensions and other pension related changes.
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.
56
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
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 relate to deferred compensatory time and reserves for questioned costs are treated the same way.
Long-term obligations are included in the government-wide financial statements and proprietary fund types in the fund financial statements. Long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the related debt, except in the case of refunding debt transactions where the amortization period is over the term of the refunding or refunded debt, whichever is shorter.
The City enters into interest rate swap agreements to modify interest rates and/or cash flows on outstanding debt. For existing swaps, the net interest expenditures resulting from these arrangements are recorded as interest expense. The fair value of derivative instruments that are deemed to be effective is accounted for as deferred outflows. Derivative instruments that are deemed not effective are adjusted to fair value with the change in fair value recorded to investment earnings. Under certain bond ordinances adopted by the City Council, interest rate swaps and swaptions are authorized to be entered into by designated City officials in connection with certain bonds issued by the City. For swaps related to O'Hare Bonds or Midway Bonds, airline approval is also required before entering into a swap agreement.
In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received and discounts given on debt issued are reported as other financing sources or uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures.
Certain debt obligations are to be paid from sales tax, motor fuel or special area taxes.
For purposes of measuring the.net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's four pension plans and additions to/deductions from the City's Pension Plans fiduciary net position have been determined on the same basis as they are reported by the Pension Plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The financial statements of the Plans are prepared using the accrual basis of accounting.
Deferred inflows represent amounts to be recognized as revenue on a straight line basis over the life of the related long-term lease and concession agreements and differences between projected and actual actuarial experience related to pensions, and other pension related changes. 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.
Net Position in the government-wide statements is classified in three components:
(1) Net investment in capital assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or any other borrowings that are attributable to the acquisition, construction, or improvement of those assets.
57
CITY OF CHICAGO ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
(2) 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.
.- or "net investment in-
capital assets." As of December 31, 2016, the unrestricted net position represents a deficit.
2) Reconciliation of Government-wide and Fund Financial Statements
a) Explanation of certain differences between the governmental funds balance sheet and the government-wide statement of net position.
i) The governmental funds balance sheet includes a reconciliation between fund balance - total governmental funds and net position - governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that "Other long-term assets are not available to pay for current-period expenditures and therefore are deferred in the funds." The details of this $1,639.5 million are as follows (dollars in thousands):
Deferred inflows - property tax $ 1,375,279
Deferred inflows - grants 253,053
Deferred inflows - charges for services 11,209
Net adjustment to increase fund balance - total governmental funds
- to arrive at net position - governmental activities $ 1,639,541
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 $38,696.3 million are as follows (dollars in thousands):
Long-term liabilities:
Total bonds, notes and certificates payable $ 10,410,301
Pension benefits 31,512,071
Other postemployment benefits 167,209
Pollution remediation 33,201
Claims and judgments 942,622
Total Long-term liabilities 43,065,404
Accounts payable - infrastructure retainage 22,171
Bonds, notes and other obligations payable current (122,712)
Other assets - issuance costs (bond insurance) (11,159)
Deferred outflows-unamortized loss on refunding (229,368)
Deferred outflows-pension costs (5,438,514)
Deferred inflows-pension 720;224
Accrued and other liabilities - compensated absences 88,364
Accrued and other liabilities - pension payable to pension funds .. 601,861
Net adjustment to reduce fund balance - total governmental funds - to arrive at net position -
governmental activities $ 38,696,271
58
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
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 $165.1 million are as follows (dollars in thousands):
Capitalized asset expenditures $ 570,840
Donated assets 39
Depreciation expense (405,292)
Loss - on disposal of land (460)
Net adjustment to increase net changes in fund balances - total governmental funds - to arrive at
changes in net position - governmental activities $ 165,127
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 increase of $249.4 million are as follows (dollars in thousands):
Proceeds of debt $ (530,746)
Proceeds from Line of Credit (337,140)
Premium (23,892)
Payment of refunded bond escrow agent 496,150
Principal retirement 659,281
Interest expense (14,265)
Net adjustment to reduce net changes in fund balances - total
governmental funds - to arrive at changes in net position - governmental activities $ 249,388
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 $3,792.2 million are as follows (dollars in thousands):
Claims and judgments $ (92,061)
Pension costs (3,747,531)
Other post employment benefit liabilities 47,326
Pollution remediation (351)
Vacation 545
Inventory (97)
Net adjustment to reduce net changes in fund balances - total governmental funds - to arrive at
changes in net position - governmental activities $ (3,792,169)
59
r^iTv nc ruir/ir.n u i iMrtic
NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2016
3) Stewardship, Compliance and Accountability
Annual Appropriation Budgets are established for the General Fund and the Vehicle Tax, Pension, Chicago Public Library and certain Miscellaneous, Special Events, Tourism and Festivals nonmajor Special Revenue Funds, on a non-GAAP budgetary basis:
Prior to October 15, the Mayor submits to the City Council a proposed budget of expenditures and the means 'of"financing"them for the hext'yearv
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.
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.
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, 2016 is as follows (dollars in thousands):
General
Fund
Revenues, GAAP Basis $ 3,682,612
Add:
Transfers In 14,998
Revenues, Budgetary Basis $ 3,697,610
Expenditures, GAAP Basis $ 3,473,208
Add:
Transfers Out 169,955
Encumbered in 2016 14,115
Deduct:
Payments on Prior Years' Encumbrances (25,045)
Payments on Prior Years' Assignments (68,780)
Provision for Doubtful Accounts and Other (2,860)
Expenditures, Budgetary Basis . $ .3,560,593
c) Individual Fund Deficits include the Chicago Skyway Fund, an Enterprise Fund, which has a fund deficit of $1,344.6 million which management anticipates will be funded through recognition of deferred inflows. Midway International Airport Fund has a fund deficit of $303.9 million which will be funded through future revenues. Federal State and Local Grants, a governmental fund, has a deficit of $242.9 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 $894.0 million which will be funded through the recognition of deferred inflows.
60
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
4) Restricted and Unrestricted Cash, Cash Equivalents and Investments
a) Investments As of December 31, 2016, the City had the following Investments (dollars in thousands):
Investment Type Investment Maturities (in Years)
Less Than 1 1-5 6-10 More Than 10 Total
City Funds
U.S. Treasuries $ 95,179 S 19,907 $ - $ - $ 115,086
U.S. Agencies* 886,488 728,984 9,187 - 1,624,659
Commercial Paper 358,723 - - - 358,723
Corporate Bonds 141,337 513,629 446,595 405,341 1,506,902
Corporate Equities 830 - - - 830
Certificates of Deposit and
Other Short-term 2,041,212 - - ¦ 2,041,212
Municipal Bonds 91,312 470,062 198,124 351,758 1,111,256
Supra national Bonds - - - -
Total City Funds S 3,615,081 $ 1,732,582 $ 653,906 $ 757,099 $ 6,758,668
"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 $ 50,433 $ 200,015 $ 134,253 $ 307,518 $ 692,219
Corporate Bonds 756,669 400,813 302,706 182,727 1,642,915
Corporate Equities 4,613,156 - - - 4,613,156
Pooled Funds 62,613 3,623 19,538 - 85,774
Real Estate 596,317 - - - 596,317
Securities Received from
Securities Lending 661,063 - - - 661,063
Venture Capital 526,846 - - - 526,846
Certificates of Deposit and
Other Short-term 323,206 - - - 323,206
Derivatives 20,635 - - - 20,635
Other 32,918 136,714 69,791 : 239,423
Total Pension Trust Funds $ 7,643,856 $ 741,165 $ 526,288 $ 490,245 $ 9,401,554
Total $ 11,258,937 $ 2,473,747 $ 1,180,194 $ 1,247,344 $16,160,222
City's Fair Value Measurements for Investments:
The City categorizes the fair value measurements of its investments based the hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation techniques used to measure fair value.
Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets Level 2 - Observable inputs other than quoted market prices, and Level 3 - Unobservable Inputs
Investments that are valued using net asset value per share (NAV) (or its equivalent) as a practical expedient are not classified in the fair value hierarchy
The recurring fair value measurements for investments as of December 31, 2016 are as follows (dollars in thousands):
61
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
Investments by Fair Value Level Level 1 Level 2 Level 3
U.S. Treasuries $ - $ 19,907
U.S. Agencies - 1,423,129
.Corporate Bonds_ ;.v..^,,,,.^,5i;,:„- .1,472,472^
Municipal Bonds - 1,076,581
Total Investments at Fair Value $ $ 3,992,089 $
Money market investments and participating interest-earning investment contracts that have a remaining maturity at the time of purchase of one year or less and are held by governments other than the external investment pools are measured at amortized cost and are not reflected in the table above. The total of these investments at amortized cost for the City are $2,766.6 million.
Pension Trust Funds' Investments (Dollars in thousands):
Summary Total Level 1 Level 2 Level 3
U.S.and Foreign
Government Agencies... $ 692,219 $ - $ 692,219 $
Corporate Bonds 974,246 - 974,144 102
Corporate Equities 4,053,636 4,018,646 34,673 317
Pooled Funds 62,613 5,514 57,099
Real Estate 14,020 14,020
Securities Received from
Securities Lending 661,063 - 661,063
Certificates of Deposit
and Other Short-term 266,415 . 7,487 249,143 9,785
Derivatives 20,635 1,333 19,302
Other 213,392 - 213,392 •_
Subtotal 6,958,239 4,047,000 2,901,035 10,204
Investments measured Unfunded Redemption Redemption
at net asset value: Commitments Frequency Notice
Corporate Bonds 668,669 23,473 as needed daily, monthly
Corporate Equities 559,521 43,086 as needed; quarterly, not eligible daily, up to 90 days, N/A
Pooled Funds 23,162
Reai Estate 582,297 43,205 as needed; quarterly, N/A 60/90 days, open end or N/A
Venture Capital 526,846 73,785 as needed or N/A 90 days or N/A
Certificates of Deposit
and Other Short-term 56,791-
Other* 26,031 20,290 as needed or N/A up to 90 days or N/A
Subtotal 2,443,317
Total $ 9,401,556
* Other includes Fixed Assets & Hedge Fund of Funds.
62
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
Corporate bonds - Include debt instruments created by companies for the purpose of raising capital and pay a specified amount of interest on a regular basis.
Corporate equities - Include investments in funds primarily holding publicly traded US and non-US equity securities.
Pooled funds - Include investments that are pooled to maximize the total return.
Real estate funds - Include investments in open and closed-end real estate funds. Investments in open-end funds have limited redemption availability as redemption opportunities are based on available liquidity. Closed-end funds do not offer redemptions. Distributions from closed-end funds will be received as the underlying investments are liquidated.
Venture capital - Includes investments where the objective is to achieve long-term capital appreciation, preserve capital, and achieve a consistent pattern of returns through investments in limited partnerships, privately issued securities, private equity funds, and other pooled investments with a focus on the venture sector and undervalued alternative investments. Closed-end limited partnership interests are generally illiquid and cannot be redeemed.
Short-term investments - Include short-term investments of high quality and low risk to protect capital while achieving investment returns.
Other - Includes Hedge Funds of long/short equity hedge fund-of-funds.
Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy limits all securities so purchased, except tax anticipation warrants, municipal bonds, notes, commercial paper or other instruments representing a debt obligation of the City, which shall show on their face that they are fully payable as to principal and interest, where applicable, if any, within thirty years from the date of purchase.
Credit Risk - With regard to credit risk, the Code limits the investments in securities to:
Interest-bearing general obligations of the United States and the State of Illinois;
United States treasury bills and other non-interest bearing general obligations of the United States or United States government agencies when offered for sale at a price below the face value of same, so as to afford the city a return on such investment in lieu of interest;
Tax anticipation warrants, municipal bonds, notes, commercial paper or other instruments representing a debt obligation issued by the City;
Commercial paper which: (1) at the time of purchase, is rated in the two highest classifications by at least two accredited ratings agencies; and (2) matures not more than 270 days after the date of purchase;
Reverse repurchase agreement if: (1) the term does not exceed 90 days; and (2) the maturity of the investment acquired with the proceeds of the reverse repurchase agreement does not exceed the expiration date of the reverse repurchase agreement; Reverse repurchase agreements may be transacted with primary dealers and financial institutions, provided that the City has on file a master repurchase agreement;
Certificates of deposit of banks or savings and loan associations designated as municipal depositories which are insured by federal deposit insurance; provided that any amount of the deposit in excess of the federal deposit insurance shall be collateralized as noted in Custodial Credit Risk -Cash and Certificates of Deposit below;
63
r*rrv nc rumAnri m i imhic
NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2016
Bankers acceptance of banks whose senior obligations, at the time of purchase, are rated in either the AAA or AA rating categories by at ieast two accredited ratings agencies;
Tax-exempt securities exempt from federal arbitrage provisions applicable to investments of proceeds of the City's tax-exempt debt obligations;
Domestic money market mutual funds regulated by and in good standing with the Securities and Exchange C.ommission;...providedthatsuch-moneyrrnarket-mutuaL^unds.',portfolios,are limited.to,,, investments authorized by this section;
Any other suitable investment instrument permitted by state laws governing municipal investments generally, subject to the reasonable exercise of prudence in making investments of public funds;
Except where otherwise restricted or prohibited, a non-interest-bearing savings account, non-interest-bearing checking account or other non-interest bearing demand account established in a national or state bank, or a federal or state savings and loan association, when, in the determination of the treasurer, the placement of such funds in the non-interest bearing account is used as compensating balances to offset fees associated with that account that will result in cost savings to the City;
Bonds of companies organized in the United States with assets exceeding $500.0 million that, at the time of purchase, are rated not less than A-, or equivalent rating, by at least two accredited ratings agencies;
Debt instruments of international financial institutions, including but not limited to the World Bank and the International Monetary Fund, that, at the time of purchase, are rated within four intermediate credit ratings of the United States sovereign credit rating by at least two accredited ratings agencies, but not less than an A-rating, or equivalent rating. The maturity of investments authorized in this subsection shall not exceed 10 years. For purposes of this subsection, an "international financial institution" means a financial institution that has been established or chartered by more than one country and the owners or shareholders are generally national governments or other international institutions such as the United Nations;
United States dollar denominated debt instruments of foreign sovereignties that, at the time of purchase, are rated within four intermediate credit ratings of the United States sovereign credit rating by at least two accredited ratings agencies, but not less than an A-rating or equivalent rating;
lnterest-bearing bonds of any county, township, city, village, incorporated town, municipal corporation, or school district, of the State of Illinois, of any other state, or of any political subdivision or agency of the State of Illinois or of any other state, whether the interest earned thereon is taxable or tax-exempt under federal iaw. The bonds shall be registered in the name of the city or held under a custodial agreement at a bank. The bonds shall be rated, at the time of purchase, not less than A-, or equivalent rating, by at least two accredited rating agencies with nationally recognized expertise in rating bonds of states and their political subdivisions;
Bonds registered and regulated by the Securities and Exchange Commission and for which the full faith and credit of the State of Israel is pledged for payment; provided that the bonds have an A-rating or above or equivalent rating by at least two accredited ratings agencies;
Bonds, notes, debentures, or other similar obligations of agencies of the United States rated, at the time of purchase, no less than AAA by at least two accredited rating agencies.
Total holdings across all funds held by the treasurer shall have no less than an overall average rating of Aa1 on a quarterly basis, as rated by two accredited rating agencies. The following schedule summarizes the City's and Pension Trust Funds' exposure to credit risk (in thousands):
64
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
993,452 2,389,780 1,090,151
Quality Rating City
Aaa/AAA $
Aa/AA
A/A
Baa/BBB
Ba/BB
B/B
Caa/CCC
Ca
C/CC
331,176 40,348 34,367 1,999 1,877,395
DID
P1/A1
P2/A2
MIG1/SP-1+
MIG2/SP-1+
Not Rated* ______
Total Funds $ 6,758,668
Pension Trust
Quality Rating Funds
Aaa/AAA $ 204,812
Aa/AA 106,996
A/A 184,177
Baa/BBB 301,300
Ba/BB 247,519
B/B 171,428
Caa/CCC 40,780
Ca 355
C/CC 488
DID 1,475
Not Rated 322,203
Other 451,942
$ 2,033,475
* Not rated is primarily composed of money market mutual funds.
iii) Custodial Credit Risk - Cash and Certificates of Deposit: This is the risk that in the event of a bank failure, the City's Deposits may not be returned. The City's Investment Policy states that in order to protect the City public fund deposits, depository institutions are to maintain collateral pledges on City deposits and certificates of deposit during the term of the deposit.
For certificates of deposit of banks or savings and loan associations designated as municipal depositories which are insured by federal deposit insurance, any amount of the deposit in excess of the federal deposit insurance shall be either: (1) fully collateralized at least 102 percent by: (i) marketable U.S. government securities marked to market at least monthly; (ii) bonds, notes, or other securities constituting the direct and general obligation of any agency or instrumentality of the United States; or (iii) bonds, notes or other securities constituting a direct and general obligation of any county, township, city, village, incorporated town, municipal corporation, or school district, of the State of Illinois or of any other state, or of any political subdivision or agency of the State of Illinois or any other state which are rated in either the AAA or AA rating categories by at least two accredited ratings agencies and maintaining such rating during the term of such investments; (2) secured by a corporate surety bond issued by an insurance company licensed to do business in the State of Illinois and having a claims-paying rating in the top rating category as rated by a nationally recognized statistical rating organization and maintaining such rating during the term of such investment; or (3) fully collateralized at least 102 percent by an irrevocable letter of credit issued in favor of the City by the Federal Home Loan Bank, provided that the Federal Home Loan Bank's short-term debt obligations are rated in the highest rating category by at least one accredited ratings agency throughout the term of the certificate of deposit.
The collateral required to secure City funds must be held in safekeeping and pursuant to collateral agreements which would prohibit release or substitution of pledged assets without proper written notification and authorization of the City Treasurer. The final maturity of acceptable collateral pledged shall not exceed 120 months.
The bank balance of cash and certificates of deposit with the City's various municipal depositories was $514.1 million. 84.7 percent of the bank balance was either insured or collateralized with securities held by City agents in the City's name. $78.7 million was uncollateralized at December 31, 2016, and thus was subject to custodial credit risk.
65
riTv r\c ruirAcn n i ikioic
\_/1 i i wi w¦ nvnv^w, ii_i_inv/iv;
NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2016
iv) Custodial Credit Risk - Investments: For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the vaiue 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.
Foreign Currency Risk - In the case of the Pension Trust Funds, this is the risk that changes in exchange rates will adversely affect the fair value of an investment or a deposit. The risk of loss is managed by limiting its "expds^^
diversified portfolios. The following schedule summarizes the Pension Trust Funds' exposure to foreign currency risk (in thousands):
Foreign Currency Risk
Australian dollar $ 61,507
Brazilian real 38,576
British pound 223,156
Canadian dollar 72,438
Chilean peso 1,772
Chinese yuan 712
Columbian peso 3,712
Czech Republic koruna 2,278
Danish krone 22,925
Egyptian pound 226
European euro 381,077
HK Chinese Yuan renminbi |910|Hong Kong dollar 131,579
Hungarian forint 3,812
Indian rupee 44,170
Indonesian rupiah 25,006
Japanese yen 328,527
Malaysian ringgit 6,821
Mexican peso 20,515
New Israeli shekel 6,695
New Romanian leu (5)
New Taiwan dollar 35,096
New Zealand dollar 2,225
Norwegian krone 15,169
Pakistan rupee 116
Philippines peso 8,596
Polish zloty 1,833
Qatari riyal 529
Russian ruble 1,462
Singapore dollar 9,600
South African rand 32,361
South Korean won 58,675
Swedish krona 50,126
Swiss franc.... 82,331
Taiwan dollar 4,376
Thailand bant 16,944
Turkish lira 7,510
United Arab Emirates dirham... 3,122
Total Pension Trust Funds $ 1,705,571
66
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
vi) The following schedule summarizes the cash and investments reported in the basic financial statements (dollars in thousands):
Per Note 4:
Investments - City $ 6,758,668
Investments - Pension Trust Funds 9,401,554
$ 16,160,222
Per Financial Statements:
Restricted Investments $ 2,431,785
Unrestricted Investments 1,911,611
Investments with Fiduciary Funds 8,704,827
Investments with Escrow Agent 515,992
Invested Securities Lending Collateral 661,063
Investments Included as Cash and Cash
Equivalents on the Statement of Net Position 1,934,944
$ 16,160,222
5) Property Tax
The City's property tax becomes a lien on real property on January 1 of the year it is levied. The Cook County Assessor (Assessor) is responsible for the assessment of all taxable real property within Cook County (County), except for certain railroad property assessed directly by the State. The County Board has established a triennial cycle of reassessment in which one-third of the County will be reassessed each year on a repeating schedule established by the Assessor.
Property in the County is separated into fifteen classifications for assessment purposes. After the Assessor establishes the fair market value of a parcel of land, that value is multiplied by one of the classification percentages to arrive at the assessed valuation (Assessed Valuation) for that parcel. These percentages range from 10.0 percent for certain residential, commercial, and industrial property to 25.0 percent for other commercial and industrial property.
The Illinois Department of Revenue has the statutory responsibility of ensuring uniformity of real property assessments throughout the State. Each year, the Illinois 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 of Illinois and subtracts total amounts of EAV in Tax Increment Financing Districts to arrive at the base amount (Tax Base) used in calculating the annual tax rates.
The County Clerk computes the annual tax rate by dividing the levy by the Tax Base and then computes the rate for each parcel of real property by aggregating the tax rates of all governmental units having jurisdiction over that particular parcel. The County Treasurer then issues the tax bills. Property taxes are deposited with the County Treasurer, who remits to the City its respective share of the collections. Taxes levied in one year become due and payable in two installments during the following year on March 1 and August 1 or 30 days from mailing of tax bills if later than July 1. The first installment is 55.0 percent of the prior year's tax bill. The second installment tax bill equals the total tax liability for the year minus the first installment tax bill amount.
The City Council adopted an ordinance effective in 1994 limiting the City's aggregate property tax levy to an amount equal to the prior year's aggregate property tax levy plus the lesser of (a) five percent or (b) the percentage increase in the annualized Consumer Price Index. - The ordinance provides an exception for that portion of any property tax debt service levy equal to the aggregate interest and principal payments on the City's general obligation bonds and notes during the 12-month period ended January 1, 1994, subject to annual increase in the manner described above for the aggregate levy, all as provided by the ordinance. Most general obligation bond levies approved after 2001 have also been excluded from this limit. In 2015 the City Council added an exception for portions of the property tax levy used to meet the City's pension obligations.
67
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
6) Interfund Balances and Transfers
a) The following balances at December 31, 2016 represent due from/to balances among all funds (dollars in thousands):
Fund Type/Fund . Due From Due To
Governmental Funds:
General „ .„... $ 119,312 $ 129,311
:'wFederal. State aricJ Local Grants Z'!l:. ' " "25,908' ' '281,017 ¦'¦•¦.-<¦-=¦:
Special Taxing Areas 286,527 12,143
Bond, Note Redemption and Interest 2,103
Community Development and Improvement Projects.. 18,434 39,537
Pension - 155,884
Nonmajor Governmental Funds 91,712 136,647
Total Governmental Funds 543,996 754,539
Enterprise Funds:
Water 35,906 9,106
Sewer '17,473 11,581
Chicago Midway International Airport 2,026 8,216
Chicago-O'Hare International Airport 31,851 3,679
Chicago Skyway - 15
Total Enterprise Funds 87,256 32,597
Fiduciary activities:
Pension Trust 155,884 -
Total Fiduciary activities 155,884 -
Total $ 787,136 $ 787,136
The balances result from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made.
b) The following balances at December 31, 2016 represent interfund transfers among all funds (dollars in thousands):
Fund Type/Fund Transfer In Transfer Out
Governmental Funds:
General $ 14,998 $ 169,955
Federal, State and Local Grants - 4,000
Special Taxing Areas..... 14,623 75,133
Bond, Note Redemption and Interest 150,104 89,145
Community Development and Improvement Projects.. 13,700 13,545
Pension 11,587
Nonmajor Governmental Funds 170,778 21,472
Total Governmental Funds $ 375,790 $ 373,250
Business-type activities:
Water - 2,420
Sewer - 120
Total Business-type activities _$_ - $ 2,540
Total $ 375,790 $ 375,790
Transfers are used to move revenues from the fund that the statute or budget requires to collect them to the fund that the statute or budget requires to expend them and to move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due.
68
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
7) Capital Assets
a) Capital Assets activity for the year ended December 31, 2016 was as follows (dollars in thousands):
Governmental activities: Capital assets, not being depreciated:
Land
Works of Art and Historical Collections
Construction in Progress
Total capital assets, not being depreciated..
Capital assets, being depreciated:
Buildings and Other Improvements
Machinery and Equipment
Infrastructure
Total capital assets, being depreciated
1,079,142 1,284,234 4,509,986 6,873,362 6,491,918
$ 8,508,200 $ 559,994 $ (391,941) $ 8,676,253
Less accumulated depreciation for:
Buildings and Other Improvements
Machinery and Equipment
Infrastructure
Total accumulated depreciation
Total capital assets, being depreciated, net...
Total governmental activities
Business-type activities:
Capital assets, not being depreciated:
Land $
Construction in Progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings and Other Improvements
Machinery and Equipment
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings and Other Improvements
Machinery and Equipment
Total accumulated depreciation
Total capital assets, being depreciated, net
Total business-type activities $
Total Capital Assets $
69
NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2016
b) Depreciation expense was charged to functions/programs of the City as follows (dollars in thousands):
Governmental activities:
General Government $ 36,126
Public Safety 39,874
Streets and Sanitation 15,606
Transportation..-.r.-..............r..----^- 292,151
Health 749
Cultural and Recreational 20,786
Total Depreciation Expense - Governmental activities $ 405,292
Business-type activities:
Water $ 64,333
Sewer 40,347
Chicago Midway International Airport 49,070
Chicago-O'Hare International Airport 254,688
Chicago Skyway 8,540
Total Depreciation Expense - Business-type activities .. $ 416,978
8) Leases
a) Operating Leases
The City leases building and office facilities under noncancelable operating leases. Total costs for such leases were approximately $15.8 million for the year ended December 31, 2016.
The future minimum lease payments for these leases are as follows (dollars in thousands):
$ 5,105
3,956
3,740
2,393
2,073
2022 - 2026 4,054
2027-2031 319
2032-2036 109
2037-2041 109
2042 - 2043 22
Total Future Rental Expense $ 21,880
70
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
b) 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, 2016 (dollars in thousands):
2017 $ 100,891
98,998
98,506
2020 1,597
2021 1,597
2022 - 2026 8,460
2027 - 2030 7,835
Total Minimum Future Rental Income $ 317,884
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 $459.5 million, including contingent rentals of $92.7 million.
Most of the Midway land and terminal space is leased under operating lease agreements to airlines and other tenants. The following is a schedule of the minimum future rental income on noncancelable operating leases as of December 31, 2016 (dollars in thousands):
2017 $ 40,734
40,734
40,513
40,513
40,505
2022 - 2026 202,564
2027 - 2030 162,051
Total Minimum Future Rental Income $ 567,614
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 $95.3 million, including contingent rentals of $41.5 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, 2016, the outstanding balance was at $0.7 million.
71
pitv nc r^uip Arin 11 i iKtnic
w¦ i i v>i ¦ iiOnOV) ii_uiiivi«j
NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2016
10) Long-term Obligations
a) Long-term Debt activity for the year ended December 31, 2016 was as follows (in thousands):
Balance January 1,
Governmental activities: Bonds and notes payable:
General obligation and other debt $ 9,364,398
Tax increment 65,360
Revenue 754,052
10,183,810
Add unamortized premiunV(discount) 117,199
Add accretion of capital appreciation bonds 307,305
Total bonds, notes and certificates payable 10,608,314
Other liabilities:
Net pension liability 29,697,694
Other postemployment benefits obligation 214,535
Pollution remediation 32,850
Claims and judgments 850,561
Total other liabilities 30,795,640
Total governmental activities $ 41,403,954
Business-type activities:
Revenue bonds and notes payable:
Water $ 2,391,395
Sewer 1,686,178
Chicago-O'Hare International Airport 7,466,485
Chicago Midway International Airport 1,506,325
13,050,383
Add unamortized premium/(discount) 628,167
Add accretion of capital appreciation bonds 87,447
Net pension liability 4,148,475
Total business-type activities $ 17,914,472
Total long-term obligations $ 59,318,426
^Reductions
Balance December 31, , . ,2016, = ,„-
$ 150,487 5,595 17,880 173,962
$ 1,028,529 31,840 18,170 1,078,539
22,791 19,949 1,121,279
9,173,009 33,520 766,628 9,973,157
118,300 318,844 10,410,301
P Additions^
5 837,140
30,746 867,886
20,772 194,734
1,814,377
351 193,792 2,008,520
23,892 31,488 923,266
47,326
101,731 149,057
107,675 107,675
31,512,071 167,209 33,201 942,622
32,655,103
137,330 54,170 1,026,533
342,39b 1,560,428
79,305 49,325
277,850 25,770
432,250
2,468,397 1,692,820 7,260,508 1,781,605 13,203,330
815,420 85,363 4,247,194
$ 2,931,786 $ 1,270,336 $ 43,065,404 $ 302,409
277,554 7,869 118,502
$ 60,328 47,528 1,232,510 67,115 1,407,481
10,252
18,351,307 $ 442,502
90,301 9,953 19,783
61,416,711 S . 744,911
$ 1,527,518
$ 2,797,854
The Pension obligation liability will be liquidated through a Special Revenue Fund (Pension Fund) as provided by tax levy and other operating revenues.
72
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
b) Issuance of New Debt
General Obligation Line of Credit
During 2016, the City drew $337.1 million from its Line of Credit to fund certain capital projects and operating uses. As of December 31, 2016 the outstanding balance is $124.3 million. The City has excluded .this line of credit amount from current liabilities, as it intends and has the ability to refinance the obligation on a long-term basis. The Line of Credit matures on September 24, 2019.
General Obligation Bonds
General Obligation Bonds, Tax Exempt Series 2015C ($500.0 million), were sold at a premium in January 2016. The bonds have an interest rate of 5.0 percent and maturity dates from January 1, 2020 to January 1, 2038. Net proceeds of $520.0 million will be used to refund certain maturities of bonds outstanding ($502.5 million), and to fund capitalized interest ($17.5 million). The current refunding of the bonds increased the City's total debt service payments by $124.1 million, resulting in a net economic gain of approximately $2.5 million and a book loss of approximately $110.7 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 $98.7 million will fund the Chicago Riverwalk along the main branch of the Chicago River. The interest rate is 3.33 percent and the final maturity of the loan is January 1, 2048. As of December 31, 2016, the total outstanding loan amount is $76.6 million. Total loan disbursements made to the City in 2016 were $30.8 million.
Enterprise Fund Revenue Bonds and Notes
In August 2013, the City entered into a loan agreement with the TIFIA program to fund a portion of Consolidated Rental Car Facility at O'Hare, additions, extensions and improvements to the airport transit - system (ATS) including the purchase of new ATS vehicles and certain public parking facilities. The loan amount of $288.1 million is subordinate to the O'Hare Customer Facility Charge Senior Lien Revenue Bonds, Series 2013. The interest rate is 3.86 percent and the final maturity of the loan is January 1, 2052. There were no loan disbursements made to the City as of December 31, 2016.
Chicago Midway International Airport Second Lien Revenue Bonds, Series 2016 A&B ($342.4 million) sold at a premium in June 2016. The bonds have interest rates ranging from 2.0 percent to 5.0 percent and maturity dates from January 1, 2017 to January 1, 2046. The net proceeds of $391.8 million will be used to fund certain capital projects ($305.7 million), to refund certain maturities of bonds outstanding ($36.9 million), to fund debt service reserves ($12.9 million), and to fund capitalized interest ($36.3 million). The current refunding of the bonds decreased the City's total debt service payment by $11.9 million, resulting in a net economic gain of approximately $4.3 million and a book gain of approximately $0.4 million.
Chicago O'Hare International Airport General Airport Senior Lien Revenue and Revenue Refunding Bonds, Series 2016A-C ($1,014.3 million) were sold at a premium in December 2016. The bonds have interest rates ranging from 3.0 percent to 5.0 percent and maturity dates from January 1, 2017 to January 1, 2041. The net proceeds of $1,151.6 million will be used to refund certain General Airport Revenue Bonds maturities of bonds outstanding ($1,110.4 million), and to fund debt service reserves ($41.2 million). The current and advance refunding of the bonds decreased the City's total debt service payments by $88.9 million, resulting in a net economic gain of approximately $109.3 million and a book loss of approximately $54.3 million.
73
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
The Chicago O'Hare International Airport issued $0.1 million of Series 2016 Commercial Paper Notes. The proceeds were used to finance portions of the costs of authorized airport projects. As of December 31, 2016, there were no outstanding commercial paper notes.
In December 2016, the City entered into a Revolving Line of Credit Agreement with J. P. Morgan Chase Bank, National Association that allows the City to draw on the line of credit in an aggregate amount not to exceed $180 million. In 2016, the City drew $12.1 million from its line of credit to finance certain capital ' ' projects at the Chicago'O'Hare
A loan agreement was signed on October 22, 2013, with the Illinois Environment Protection Agency to line approximately 28 miles of existing sewer line ranging in diameter from 8 inch to 72 inch located throughout the City. In 2016, the Sewer Fund drew $54.2 million from this loan agreement. The loan has an interest rate of 1.93 percent and maturity dates from January 21, 2016 to July 21, 2035.
A loan agreement was signed on May 18, 2016 with the Illinois Environment Protection Agency for the replacement of approximately 24 miles of damaged, undersized, leaking and antiquated watermains located throughout the City with new 8 inch water mains. In 2016, the Water Fund drew $55.3 million from this loan agreement. The loan agreement has an interest rate of 2.21 percent and maturity dates from July 31, 2016 to January 31, 2036.
Second Lien Water Revenue Bonds, Series 2016 A-1 and A-2 ($81.7 million) were sold at premium in May 2016. The bonds have interest rates ranging from 1.68 percent to 5.00 percent and maturity dates from November 1, 2016 to November 1, 2031. The net proceeds of $91.5 million were used to refund the Line of Credit Notes used for the swap termination.
v) Water Fund Line of Credit
During 2016, the City drew $91.5 million from its Water Line of'Credit to fund water swap termination payments. The line of credit was repaid in full from proceeds of the Second Lien Water Revenue Series 2016 A-1 and A-2 bonds. In July 2016, the City terminated the Water Line of Credit.
vi) Bond Conversions
In May 2016, the City converted $100.0 million outstanding of the Second Lien Water Revenue Bonds Series 2000 to fixed rate at premium. The bonds have an interest rate at 5.0 percent and maturity dates ranging from November 1, 2028 to November 1, 2030. The net proceeds of $17.3 million will be used to finance certain capital projects.
In May 2016, the City converted $344.6 million outstanding of the Second Lien Water Revenue Bonds Series 2004 to fixed rate at premium. The bonds have interest rates ranging from 2.0 percent to 5.0 percent and maturity date ranging from November 1, 2017 to November 1, 2027. The net proceeds of $51.8 million will be used to finance certain capital projects.
Annua! requirements listed below for each year include amounts payable January 1 of the following year.
Bonds maturing and interest payable January 1, 2017 have been excluded because funds for their payment
have been provided for. Annual requirements to amortize debt outstanding as of December 31, 2016 are as
follows (dollars in thousands):
74
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
General Obligation
Year Ending Principal Interest
December 31,
2017 $ 272,292 $ 512,361
294,922 499-915
313,379 485,973
329,704 473,192
333,877 457,640
2022-2026 1,647,999 2,085,487
2027-2031 1,972,780 1,677,054
2032-2036 2,117,587 995,201
2037-2041 1,451,459 388,720
2042-2046 209,915 20,084
$8,943,914 $7,595,627
Tax Increment
Interest
Principal
5,595 5,710 6,020 4,135 4,375 7,685
$ 33,520 $
Business-type Activities
Year Ending Principal
December 31,
$ 18,250
19,150
2019 20,335
2020 21,440
2021 22,568
2022-2026 132,383
2027-2031 133,278
2032-2036 188,261
2037-2041 177,903
2042-2046 15,180
35,298 34,409 33,469 32,468 31,448 139,287 142,282 101,019 23,809 968
Interest Principal
432,250 461,966 470,752 456,143 424,556 2,393,059 2,835,982 3,049,578 2,103,405 563,540
Interest
630,795 632,986 606,270 592,165 568,388 2,512,876 1,862,050 1,081,412 391,925 45,180
$ 748,748 $ 574,457 $13,191,231 $ 8,924,047
For the debt requirements calculated above, interest rates for fixed rate bonds debt range from 0.74 percent to 7.781 percent and interest on variable rate debt was calculated at the rate in effect or the effective rate of a related swap agreement, if applicable, as of December 31, 2016. 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 on the City's variable rate Bonds. In the event that variable rate bonds are tendered by the owners thereof for purchase by the City and not successfully remarketed, the City would be obligated to reimburse the letter of credit bank for amounts drawn under the letter of credit to fund the purchase of such tendered bonds. If the City fails to reimburse the bank , the City's obligation to reimburse the bank may be converted to a term loan. There are no term loans currently outstanding under any reimbursement agreement. Only Chicago O'Hare and Chicago Midway Funds have outstanding variable rate bonds.
75
NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2016
d) Derivatives
i) Interest Rate Swaps
(1) Objective of the swaps. In order to protect against the potential of rising interest rates and/or changes in cash flows, the City has entered into various separate interest rate swaps at a cost less than what the City would have paid to issue fixed-rate debt. (Dollars in thousands).
Fair Value at December 31, 2016
Classification
Notional Amount
Business-type Activities
Hedges'
Interest Rate Swaps..
Deferred Outflow of Resources
Deferred Outflow of Resources
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, 2016, are as follows. The notional amounts of the swaps approximate the principal amounts of the associated debt. The City's swap agreements contain scheduled reductions to outstanding notional amounts that are expected to approximately follow scheduled or anticipated reductions in the associated "bonds payable" category. Under the swaps on a net basis for each related series of bonds, the City pays the counterparty a fixed payment and receives a variable payment computed according to the London Interbank Offered Rate (LIBOR) and/or The Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index. The terms as of December 31, 2016, are as follows (dollars in thousands):
Counter-Termi- party
Associated Notional Effective Fair nation Credit
Bond Issue Amounts Date Terms Values Date Rating
Hedging Instruments Business-type Activities:
Chicago Midway International Airport 79,320 12/14/2004 Pay 4.174%; receive SIFMA Plus .05% $ (15,213) 1/1/2035 A1/A+
Revenue Bonds (Series 2004C&D) 52,280 4/21/2011 Pay 4.247%; receive SIFMA Plus .05% (10,821) 1/1/2035 Aa2/AA-
Total $ (26,034)
"See Table 31 in Statistical Section for Counterparty Entities and additional details for credit ratings. Type and objective for all the Swaps is the same, as mentioned earlier.
Fair Value. As of December 31, 2016, the swaps had a negative fair value of $26.0 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. During 2016, the City terminated the following swaps (dollars in thousands):
Termination
Associated Bond Issue: Amount
Series 2000 2nd Lien Water Revenue Refunding Bonds $ 32,298.0
Series 2004 Water Variable Rate Revenue Refunding Bonds 69,453.4
Swap termination payments were recorded as Swap Termination Fees.
76
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
Derivative instruments are valued in the market using regression analysis. Significant inputs to the derivative valuation for interest rate swaps are observable in active markets and are classified as Level 2 in the fair value hierarchy.
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. As of December 31, 2016, 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):
77
r*iTV nc ruin Arir\ n i imo'Q
NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2016
Interest
Variable-Rate Bonds Rate
Year Ending Principal Interest Swaps, Net Total
December 31,
2017 $ 4,575 $ 982 $ 4,399 $ 9,956
2018 4,775 945 4,235 9,955
2019.,, v:, 5,000., 907.... . 4,064 .......... ..9,971.. . . ...
2020 1... 5,225 " 867 3,885 9,977
2021 5,350 826 3,701 9,877
2022-2026 31,050 3,441 15,413 49,904
2027 - 2031 38,600 2,087 9,348 50,035
2032 - 2035 37,625 473 2,119 40,217
$ 132,200 $ 10,528 $ 47,164 $ 189,892
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, 2016. The Water Rate Stabilization account had a balance in restricted assets of $91.2 million at December 31, 2016.
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, 2016.
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, 2016. The Sewer Rate Stabilization account had a balance in restricted assets of $32.6 million at December 31, 2016.
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, 2016.
Chicago Midway International Airport Fund - The Master Indenture of Trust securing Chicago Midway Airport Revenue Bonds requires in each year that the City fix and establish and revise from time to time whenever necessary, such rates and other charges for the use and operation of Midway and for services rendered by the City in the operation of Midway in order that, in each Fiscal year, Revenues, together with any Other Available Monies deposited with the Trustee with respect to such Fiscal Year and any 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 amounts needed to make the Deposits required during such Fiscal Year into the Debt Service Funds, the Operations & Maintenance Reserve Account, the Working Capital Account, the Debt Service Reserve Fund, the Junior Lien Obligation Debt Service Fund, the Repair and Replacement Fund, and the Special Project Fund and (ii) an amount not less than 125 percent of the Aggregate Debt Service for the Bond Year commencing
78
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
during 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, 2016.
The Master Indenture of Trust Securing Chicago Midway Airport Second Lien Obligations requires that the City fix and establish and revise from time to time whenever necessary, such 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, 2016.
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 the City will fix and establish, and revise from time to time whenever necessary, the rentals, rates and other charges for the use and operation of O'Hare and for services rendered by the City in the operation of O'Hare in order 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 Obligations or other outstanding Airport Obligations are issued and secured, and (b) one and ten-hundredths 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, 2016.
The Master Trust Indenture securing Chicago O'Hare International Airport Passenger Facility Charge (PFC) Obligations requires PFC Revenues, as defined, received by the City 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
79
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
and interest on the Bonds due in such Fiscal Year, (2) to reimburse the Rolling Coverage Fund, the
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
' StaBiliza^iOn^Fund M determined" by
the City, and (5) to maintain the balance of the Operation and Maintenance Fund in an amount of no less than the Operation and Maintenance Fund Requirement and to reimburse any drawings below the Operation and Maintenance Fund Minimum Requirement over a period of not to exceed twelve months, as determined by the City.
No-Commitment Debt and Public Interest Loans include various special assessment, private activity bonds and loans. These types of financings are used to provide private entities with low-cost capital financing for construction and rehabilitation of facilities deemed to be in the public interest. Bonds payable on no-commitment debt are not included in the accompanying financial statements because the City has no obligation to provide for their repayment, which is the responsibility of the borrowing entities. In addition, federal programs/grants, including Community Development Block Grants and Community Service Block Grants, provide original funding for public interest loans. Loans receivable are not included as assets because payments received on loans are used to fund new loans or other program activities in the current year and are not available for general City operating purposes. Loans provided to third parties are recorded as current and prior year programs/grants expenditures. Funding for future loans will be from a combination of the repayment of existing loans and additional funds committed from future programs/grants expenditures.
Defeased Bonds have been removed from the Statement of Net Position because related assets have been placed in irrevocable trusts that, together with interest earned thereon, will provide amounts sufficient for payment of all principal and interest. Defeased bonds at December 31, 2016, hot including principal payments due January 1, 2017, are as follows (dollars in thousands):
Amount
Defeased Outstanding
General Obligation Emergency Telephone System-Series 1993 $ 213,730 $ 81,765
General Obligation Project and Refunding Bonds - Series 1998 7,255 7,255
General Obligation VRDB Project and Refunding Bonds - Series 2003B 4,955 4,955
General Obligation Project and Refunding Bonds - Series 2007A 5,615 5,615
Genera! Obligation Neighborhoods Alive 211 Program - Series 2002B 2,055 2,055
Lakefront Millennium Project Parking Facilities Bonds - Series 1998 149,880 43,880
Chicago-O'Hare International Airport Bonds Third Lien GARBS - Series 2006B .. 30,280 30,280
Chicago-O'Hare International Airport Bonds Third Lien GARBS - Series 2008A .. 530,170 530,170
Chicago-O'Hare International Airport Bonds Third Lien GARBS - Series 2008B .. 175,500 175,500
¦Chicago-O'Hare International Airport Bonds Third Lien GARBS - Series 2008C .. 36,255 36,255
Chicago-O'Hare International Airport Bonds Third Lien GARBS - Series 2011C .. 238,985 238,985
Special Transportation Revenue Bonds - Series 2001 118,715 82,730
Total $ 1,513,395 $ 1,239,445
80
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
11) Pension Funds and Other Postemployment Benefits a) Pension
General Information about the Pension Plan
Plan Description - Eligible City employees participate in one of four single-employer defined benefit pension plans (Plans). These Plans are: the Municipal Employees' Annuity and Benefit Fund of Chicago (Municipal Employees'); the Laborers' and Retirement Board Employees' Annuity and Benefit Fund of Chicago (Laborers'); the Policemen's Annuity and Benefit Fund of Chicago (Policemen's); and the Firemen's Annuity and Benefit Fund of Chicago (Firemen's). Plans are administered by individual retirement boards of trustees comprised of City officials or their designees and of trustees elected by plan members. Certain employees of the Chicago Board of Education participate in Municipal Employees' or Laborers'. Each Plan issues a publicly available financial report that includes financial statements and required supplementary information that can be obtained at www.meabf.org , www.labfchicago.org , www.chipabf.org , and www.fabf.org .
Benefits provided - The Plans provide retirement, disability, and death benefits as established by State law. Benefits generally vest after 10 years of credited service. Employees qualify for an unreduced retirement age minimum formula annuity based on a combination of years of service and age of retirement. Employees may also receive a reduced retirement age minimum formula annuity if they do not meet the age and service requirements for the unreduced retirement age annuity. The requirement of age and service are different for employees who became members before January 1, 2011, and those who became members on or after January 1, 2011. The annuity is computed by multiplying the final average salary by a percentage ranging from 2.2 percent to 2.5 percent per year of credited service. The final average salary is the employee's highest average annual salary for any four consecutive years within the last 10 years of credited service for participants who became members before January 1, 2011 and any eight consecutive years within the last 10 years of credited service for participants who became members on or after January 1, 2011.
Benefit terms provide for annual adjustments to each employee's retirement allowance subsequent to the employees' retirement date. For participants who became members before January 1, 2011, the annual adjustments for Municipal Employees' and Laborers' are 3.0 percent, compounded, and for Policemen's and the majority of participants in Firemen's 3.0 percent, simple, for annuitants born before January 1, 1966 and 1.5 percent, simple, born after January 1,1966 or later. For participants that first became members on or after January 1, 2011, the annual adjustments are equal to the lesser of 3.0 percent and 50 percent of CPI-U of the original benefit.
Employees covered by benefit terms - At December 31, 2016, the following employees were covered by the benefit terms:
Municipal
Employees' Laborers' Policemen's Firemen's Total
Inactive employees or beneficiaries
currently receiving benefits 25,236 3,769 13,394 4,777 47,176
Inactive employees entitled
to but not yet receiving benefits 16,876 1,476 606 88 19,046
Active employees 30,296 2,822 12,177 4,760 50,055
72,408 8,067 26,177 9,625 116,277
81
\si i i \_/1 vi itvnOv, luulnwiu
NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2016
Contributions - Historically State law required City contributions at statutorily, not actuarially, determined rates. State law also requires covered employees to contribute a percentage of their salaries. The City's contribution for Municipal Employees' and Laborers' was calculated based on the total amount of contributions by employees to the respective Plans made in the calendar year two years prior, multiplied by 1.25 for the Municipal Employees', 1.00 for the Laborers'.
For the Policemen's, and Firemen's Plans, Public Act 99-0506 (P.A. 99-0506) was enacted on May_31, 2016. "Th^'City^ircontn
in the aggregate amounts as follows: in payment year 2017, $672 million; in payment year 2018, $727 million; in payment year 2019, $792 million; and in payment year 2020, $824 million. Additionally, P.A. 99-0506 requires that the City's contributions are at actuarially determined rates beginning in payment year 2021 and future funding be sufficient to produce a funding level of 90% by the year ended December 31, 2055.
The City's contributions are budgeted in the same year as the applicable levy year for the property taxes funding the contributions. The City's contributions are then paid to the pension funds in the following year (which is when the levied property taxes are collected and paid to the City by the Cook County Treasurer).
Net Pension Liability
The City's net pension liability was measured as of December 31, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The actuarial reports were provided by each of the pension funds.
Actuarial assumptions. The total pension liability in the December 31, 2016 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Municipal
Employees' Laborers' Policemen's Firemen's
Inflation 3.0% 3.0% 2.8% 2.5%
Salary Increases 4.5% - 8.25% (a) 3.75% (b) 3.75% (c) 3.75% (d)
Investment Rate of Return 7.5% (e) 7.5% (f) 7.25% 7.5%
Varying by years of service
Plus a service - based increase in the first 15 years
Plus additional percentage related to service
Plus additional service based increases
Net of investment expense
Net of investment expense, including inflation
Mortality rates were based on the RP-2000 Health Annuitant Mortality Table for Males or Females, as appropriate for Municipal Employees', Laborers', and Firemen's and RP-2014 for Policemen's.
The mortality actuarial assumptions used in the December 31, 2016 valuation were adjusted based on the results of actuarial experience study for the period:
Municipal Employees' - January 1, 2005 - December 31, 2009. Laborers' - January 1, 2004 - December 31, 2011 Policemen's - January 1, 2009 - December 31, 2013 Firemen's - January 1, 2003 - December 31, 2010
The long-term expected rate of return on pension plan investments was determined using the building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of
82
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
return by the target asset allocation percentage and by adding
best estimates of arithmetic real rates of return for each major
table:
Target Allocation
Municipal
Asset Class: Employees' Laborers' Policemen's Firemen's
Domestic equity 26.0%
Domestic large cap equity - - - 24.0%
Domestic small cap equity. - 16.0%
U.S. equity - 12.0% 21.0%
Non U.S. equity ' - 18.0% 20.0%
Global equity - 20.0%
International equity 22.0% - - 25.0%
Domestic Fixed income - - - 21.0%
Fixed income 27.0% 16.0% 22.0%
Hedge funds 10.0% 8.0% 7.0%
Private equity 5.0% - - 3.0%
Private markets - 7.0% 11.0%
GAA - 7.0% 10.0%
Real estate 10.0% 8.0% 5.0% 2.0%
Alternative investments - - - 2.0%
Commodities - - - 3.0%
Cash deposits and
short-term investments - - - 4.0%
Real assets - - 4.0%
Private Real assets - 4.0% - -__
Total 100.0% 100.0% 100.0% 100.0%
expected inflation. The target allocation and asset class are summarized in the following
Municipal Employees' 4.80%
Long-Term Expected Real Rate of Return
Laborers' Policemen's Firemen's
6.10% 7.60%
7.50% 7.85%
5.00%
0.50% 2.80% 8.60%
6.40% 8.00% 6.80%
1.80% 3.70%
7.80% 5.00% 4.60%
7.50% 3.00%
2.60% 3.90%
1.50%
7.20% 4.30% 4.60%
5.20%
6.15% 5.25% 2.75%
4.80%
2.25%
Discount rate
Municipal Employees' - The discount rate used to measure the total pension liability was 3.91 percent. This Single Discount Rate was based on an expected rate of return on pension plan investments of 7.5 percent and a municipal bond rate of 3.78 percent. The projection of cash flows used to determine the discount rate assumed member contributions will be made at the current contribution rate and that employer contributions will be made at the 1.25 multiple of member contributions from two years prior. For this purpose, only employer contributions that are intended to fund benefits of current plan members and their beneficiaries are included. Projected employer contributions and contributions from future plan members that are intended to fund the service costs of future plan members and their beneficiaries are not included. Based on those assumptions, the pension plan's fiduciary net position was not projected to be available to make all projected future benefit payments of current plan members. The projected benefit payments through 2023 were discounted at the expected long-term rate of return. Starting in 2024, the projected benefit payments were discounted at the municipal bond rate. Therefore, a single equivalent blended discount rate of 3.91 percent was calculated using the long-term expected rate of return and the municipal bond index.
Laborers' - A Single Discount Rate of 4.17 percent was used to measure the total pension liability. This Single Discount Rate was based on an expected rate of return on pension plan investments of 7.5 percent and a municipal bond rate of 3.78 percent. The projection of cash flows used to determine this Single Discount Rate assumed that plan member contributions will be made at the current contribution rate and that employer contributions will be made under the statutory funding policy. Based on these assumptions, the pension plan's fiduciary net position and future contributions were sufficient to finance the benefit payments through the year 2027. As a result, the long-term expected rate of return on pension plan investments was applied to projected benefit payments through the year 2027, and the municipal bond rate was applied to all benefit payments after that date.
83
r*iTV nc ruir Ann n i mnic
NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2016
Policemen's - A Single Discount Rate of 7.07 percent was used to measure the total pension liability. This Single Discount Rate was based on an expected rate of return on pension plan investments of 7.25 percent and a municipal bond rate of 3.78 percent. The projection of cash flows used to determine this Single Discount Rate assumed that plan member contributions and employer contributions are made in accordance with the statutory requirements. Based on these assumptions, the pension plan's fiduciary net position and future contributions were sufficient to finance the benefit payments through the year 2068. As a result, the long-term expected rate of return on pension plan investments was applied to projected benefit payments -'-""thToug
Firemen's - A Single Discount Rate of 7.30 percent was used to measure the total pension liability. This Single Discount Rate was based on an expected rate of return on pension plan investments of 7.5 percent and a municipal bond rate of 3.78 percent. The projection of cash flows used to determine this Single Discount Rate assumed that member contributions and employer contributions are made in accordance with the statutory requirements. Based on these assumptions, the Plan's fiduciary net position and future contributions were sufficient to finance future benefit payments only through the year 2066. As a result, the long-term expected rate of return on pension plan investments was applied to projected benefit payments through the year 2066, and the municipal bond rate was applied to all benefit payments after that date.
Changes in the Net Pension Liability (dollars in thousands):
Municipal
Employees' Laborers' Policemen's Firemen's Total
Total pension liability
Service cost $ 619,743 $ 82,960 * $ 220,570 * $ 94,115 * $ 1,017,388
Interest 878,369 150,166 851,098 342,085 2,221,718
Benefit changes - - 606,250 227,213 833,463
Differences between
expected and actual experience (127,119) (30,428) 1,801 24,110 (131,636)
Assumption changes (578,920) (62,905) 112,585 (74,373) (603,613)
Benefit payments including refunds (859,672) (154,683) (707,196) (286,759) (2,008,310)
Pension plan administrative expense - (4,080) (4,750) (3,217) (12,047)
Net change in total pension liability (67,599) (18,970) 1,080,358 323,174 1,316,963
Total pension liability:
Total pension liability - Beginning 23,358,870 3,712,615 12,032,733 4,826,084 43,930,302
Total pension liability - Ending (a) $ 23,291,271 $ 3,693,645 $ 13,113,091 $ 5,149,258 $ 45,247,265
Plan fiduciary net position
Contributions-employer $ 149,718 $ 12,603 $ 272,428 $ 154,101 $ 588,850
Contributions-employee 130,391 17,246 101,476 48,960 298,073
Net investment income (loss) 281,419 57,997 142,699 60,881 542,996
Benefit payments including
refunds of employee contribution (859,672) (154,683) (707,196) (286,759) (2,008,310)
Administrative expenses (7,056) (4,080) (4,750) (3,217) (19,103)
Other - - 1^413 (53) 1,360
Net change in plan fiduciary net position (305,200) (70,917) (193,930) (26,087) (596.134)
" Plan fiduciary net position - beginning 4,741,427 1,238,657 " 3,058,949 1,045,101 10,084,134
Pian fiduciary net position - ending (b) $ 4,436,227 $ 1,167,740 $ 2,865,019 $ 1,019,014 $ 9,488,000
Net pension liability-ending (a)-(b) $ 18,855,044 $ 2,525,905 $ 10,248,072 $ 4,130,244 $ 35,759,265
* Includes pension plan administrative expense
84
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
Changes in benefits: Public Act 99-0905 and Public Act 99-0906 changed the benefit provisions of the Firemen's and Policemen's Plans. Public Act 99-0905 extended 3.0 percent annual COLA increases to participants born after December 31, 1954, but before January 1, 1966. Additionally, the minimum benefit for widows was increased to 125 percent of the Federal poverty level. Public Act 99-0906 increased the minimum benefit for certain annuitants to 125 percent of the Federal Poverty level. The change in benefits increased the net pension liability by $606.2 million for Policemen's and $227.2 million for Firemen's. This impact is recognized as a portion of pension expense for 2016 in its entirety.
Sensitivity of the net pension liability to changes in the discount rate
Municipal Employees' - The following presents the net pension liability as of December 31, 2016, calculated using the discount rate of 3.91 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (2.91 percent) or 1 percentage point higher (4.91 percent) than the current rate (dollars in thousands):
Current
Net pension liability December 31, 2016 1% Decrease Discount Rate 1% Increase
Municipal Employees'discount rate 2.91% 3.91% 4.91%
Municipal Employees'net pension liability ... $ 22,351,267 $ 18,855,044 $ 15,983,851
Laborers' - The following presents the net pension liability as of December 31, 2016, calculated using the discount rate of 4.17 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (3.17 percent) or 1 percentage point higher (5.17 percent) than the current rate (dollars in thousands):
Current
Net pension liability December 31, 2016 1% Decrease Discount Rate 1% Increase
Laborers'discount rate 3.17% 4.17% 5.17%
Laborers'Employees'net pension liability ... $ 3,054,407 $ 2,525,905 $ 2,091,390
Policemen's - The following presents the net pension liability as of December 31, 2016, calculated using the discount rate of 7.07 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.07 percent) or 1 percentage point higher (8.07 percent) than the current rate (dollars in thousands):
Current
Net pension liability December 31, 2016 1 % Decrease Discount Rate 1% Increase
Policemen's Employees' discount rate 6.07% 7.07% 8.07%
Policemen's Employees'net pension liability... $ 11,831,817 $ 10,248,072 $ 8,918,000
Firemen's - The following presents the net pension liability as of December 31, 2016, calculated using the discount rate of 7.30 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.30 percent) or 1 percentage point higher (8.30 percent) than the current rate (dollars in thousands):
Current
Net pension liability December 31, 2016 1% Decrease Discount Rate 1% Increase
Firemen's Employees' discount rate 6.30% 7.30% 8.30%
Firemen's Employees'net pension liability .. $ 4,700,968 $ 4,130,244 $ 3,644,823
Pension plan fiduciary net position Detailed information about the pension plan's fiduciary net position is available in the separately issued Pension Plans reports.
85
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions
For the year ended December 31, 2016, the City recognized pension expense of $5.1 billion. At December 31, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources (dollars in thousands):
""""""* '""""" '"''"" 'J" M jjifi icipaV Em ploy ees' laborers'"~ • : "Policemen's' 'Firemen's
Deferred Deferred Deferred Deferred Deferred Deferred Deferred Deferred
Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of Outflows of Inflows of
Resources Resources Resources Resources Resources Resources Resources Resources
Differences between expected
and actual experience $ - $ 167,597 $ - $ 41,001 $ 1,491 $ 69,590 $ 20,000 $ 5,316
Changes of assumptions 5,227,053 463,136 493,125 44,812 93,170 - 117,420 61,696
Net difference between
projected and actual earnings
on pension plan investments 186,142 - 97,171 - 200,502 - 56,646 -__
Total $ 5,413,195 $ 630,733 $ 590,296 $ 85,813 $ 295,163 $ 69,590 $ 194,066 $ 67,012
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows (dollars in thousands):
Municipal
Year ended December 31: Employees' Laborers' Policemen's Firemen's
$ 1,638,118 $ 331,560 $ 63,416 $ 37,459
1,638,118 149,309 63,416 37,459
1,638,118 17,583 63,416 37,460
(131,892) 6,031 19,568 22,101
2021 - - 15,757 (7,425)
Total $ 4,782,462 $ 504,483 $ 225,573 $ 127,054
Deferred outflows and deferred inflows related to changes in proportionate share of contributions
For the year ended December 31, 2016, the City reported pension expense of $1.8 million and deferred outflows of $7.3 million related to changes in its proportionate share of contributions. This deferred amount will be recognized as pension-expense over a period of four years.
Payable to the Pension Plan
At December 31, 2016, the City reported a payable of $601.9 million for the outstanding amount of contributions to the pension plan required for the year ended December 31, 2016.
b) Other Post Employment Benefits (OPEB) - Pension Funds
State law authorized the four respective Pension Funds (Policemen's, Firemen's, Municipal Employees', and Laborers') to provide a fixed monthly dollar subsidy to each annuitant who had 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 .
86
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
Pursuant to the provisions contained in PA. 98-0043, the City terminated health insurance supplement payments to eligible annuitants as of December 31, 2016, resulting in no OPEB liability at December 31, 2016.
c) Other Post Employment Benefits - City Obligation
Up to June 30, 2013, the annuitants who retired prior to July 1, 2005 received a 55 percent subsidy from the City and the annuitants who retired on or after July 1, 2005 received a 50, 45, 40 and zero percent subsidy from the City based on the annuitant's length of actual employment with the City for the gross cost of retiree health care under a court approved settlement agreement, known as the "Settlement Plan." The pension funds contributed their subsidies of $65 per month for each Medicare eligible annuitant and $95 per month for each Non-Medicare eligible annuitant to their gross cost. The annuitants contributed a total of $110.9 million in 2016 to the gross cost of their retiree health care pursuant to premium amounts set by the City.
As described above, 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) continue the then current plan for the remaining six months of 2013; then, as of January 1, 2014, (ii) provide a healthcare plan to, and for the lifetimes of, former employees who retired before August 23, 1989 with a contribution from the City of up to 55 percent of the cost of that plan to the annuitant; and (iii) 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 2016, the net expense to the City for providing these benefits to approximately 22,195 annuitants plus their dependents was approximately $45.7 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, but the City voluntarily continued those Settlement Plans until the end of 2013. As of January 1, 2014, the Health Plan provided for annual modifications to the City's level of subsidy during the three-year phase out. The Health Plan, along with any further City subsidy, expired as of 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, medical, and drug coverage to eligible retired employees and their dependents for the specified period, ending December 31, 2016. During the three-year phase out of the Health Plan, the percentage subsidies were revised to reduce by approximately 25 percent of 2013 subsidy levels in 2014, 50 percent of 2013 subsidy levels in 2015, and 75 percent of 2013 subsidy levels in 2016.
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, until December 31, 2016, the Policemen's Fund contributed $95 per month towards coverage for police officers; the Firemen's Fund did not contribute. After December 31, 2016, the Pension Funds no longer contribute toward retiree healthcare.
87
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
Both of these agreements which provide pre-65 coverage originally expired at June 30, 2012. These benefits have been renegotiated to continue through 2016 or June 30, 2017, depending on bargaining unit agreements. This valuation assumes that the CBA special benefits, except for those who will have already retired as of December 31, 2016, will cease on December 31, 2016 or June 30, 2017, depending on bargaining unit agreements.
Funding Policy - No assets are accumulated or dedicated to funding the retiree health plan benefits.
Annual OPEB Cost and Net OPEB Obligation - The City's annual other post-employment benefit (OPEB) cost (expense) is calculated based on the annual required contribution "ARC" of the employer. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and to amortize any unfunded actuarial liabilities over a period of ten years.
The following table shows the components of the City's annual OPEB costs for the year for the Health Plan and CBA Special Benefits, the amount actually contributed to the plan, and changes in the City's net OPEB obligation. The Net OPEB Obligation is the amount entered upon the City's Statement of Net Position as of year end as the net liability for the other post-employment benefits - the Health Plan. The amount of the annual cost that is recorded in the Statement of Changes in Net Position for 2016 is the annual OPEB cost (expense).
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 CBA
Settlement Special
Health Plan Benefits Total
Pay-As-You-Go Pay-As-You-Go Pay-As-You-Go
N/A N/A N/A
$ 39,666 $ 58,851 $ 98,517
428 4,757 5,185
(1,625) (18,048) (19,673)
38,469 45,560 84,029
50,051 39,620 89,671
(11,582) 5,940 (5,642)
14,280 158,571 172,851
$ 2,698 $ 164,511 $ 167,209
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year 2016 are as follows (dollars in thousands):
88
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
Schedule of Contributions, OPEB Costs and Net Obligations
Fiscal Year Ended
Settlement Plan
12/31/2016 12/31/2015 12/31/2014
CBA Special Benefits
12/31/2016 12/31/2015 12/31/2014
Total
12/31/2016 12/31/2015 12/31/2014
Annual OPEB Cost
$ 38,469 43,645 62,666
$ 45,560 48,195 49,766
$ 84,029 91,840 112,432
Percentage of Annual OPEB Cost Contributed
130.1%
133.5
149.9
87.0%
79.4
68.5
106.7%
105.1
113.9
Net OPEB Obligation
$ 2,698 14,280 28,914
164,511 158,571 148,648
167,209 172,851 177,562
Funded Status and Funding Progress - As of January 1, 2016, the most recent actuarial valuation date, the actuarial accrued liability for benefits was $715.5 million, all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was approximately $2,563.6 million and the ratio of the unfunded actuarial accrued liability to the covered payroll was 27.9 percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revisions as the results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presents, as required, (unaudited) supplementary information following the notes to the financial statements.
Schedule of Funding Progress (dollars in thousands)
Unfunded UAAL
Actuarial Actuarial Actuarial Actuarial as a
Valuation Value of Accrued Accrued Liability Funded Covered Percentage of
Date Assets Liability (AAL) (UAAL) Ratio Payroll Covered Payroll
Settlement Plan
12/31/2015 $ - $ 254,910 $ 254,910 0% $2,563,649 9.9 %
CBA Special Benefits
12/31/2015 $ - $ 460,612 $ 460,612 0% $ 1,499,552 30.7 %
Total
12/31/2015 $ - $ 715,522 $ 715,522 0% $2,563,649 27.9 %
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.
89
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
For the Health Plan benefits (not provided by the Pension Funds), the entry age normal actuarial cost method was used. The actuarial assumptions included an annual healthcare cost trend rate of 8.0 percent initially, reduced by decrements to an ultimate rate of 5.0 percent in 2027. The range of rates included a 3.0 percent inflation assumption. Rates included a 2.5 percent inflation assumption. The plan has not accumulated assets and does not hold assets in a segregated trust. However, the funds expected to be used to pay benefits are assumed to be invested for durations which will yield an annual return rate of 3.0 percent. The remaining Unfunded Accrued Actuarial Liability is being amortized as a level dollar amount over ten years. The benefits include the provisions under "the' now "Health PlarC which have been completely phased-cut by December 31, 2016, except for the Korshak category, which is entitled to lifetime benefits. Also included in the Non-CBA benefits are the duty disability benefits under the active health plan payable to age 63/65.
For the Special Benefits under the CBA for Police and Fire, the renewed contracts' expiration dates of June 30, 2016 (for Police Captains, Sergeants and Lieutenants) and June 30, 2017 for all other Police and Fire are reflected, such that liabilities are included only for payments beyond the end of the calendar year of contract expiration on behalf of early retirees already retired and in pay status as of December 31 of the expiration year of the contract. The entry age normal method was selected. The actuarial assumptions included an annual healthcare cost trend rate of 8.0 percent in 2015, reduced by decrements to an ultimate rate of 5.0 percent in 2027./ Rates included a 2.5 percent inflation assumption. The plan has not accumulated assets and does not hold assets in a segregated trust. The funds expected to be used to pay benefits are assumed to be invested for durations that will yield an annual return rate of 3.0 percent. The remaining Unfunded Accrued Actuarial Liability is being amortized as a level dollar amount over ten years.
Summary of Assumptions and Methods
Settlement Health Plan
CBA Special Benefits
Actuarial Valuation Date December 31, 2015
Actuarial Cost Method Entry Age Normal
Amortization Method Level Dollar, open
s
Remaining Amortization Period 10 years
Asset Valuation Method Market Value
Actuarial Assumptions:
Investment Rate of Return 3.0%
Projected Salary Increases 2.5%
Healthcare Inflation Rate 8.0% initial to 5.0% in 2027
December 31,2015 Entry Age Normal Level Dollar, open
10 years Market Value
3.0% 2.5%
8.0% initial to 5.0% in 2027
12) Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; certain benefits for and injuries to employees, and natural disasters. The City provides worker's compensation benefits and employee health benefits under self-insurance programs except for insurance policies maintained for certain Enterprise Fund activities. The City uses various risk management techniques to finance these risks by retaining, transferring and controlling risks depending on the risk exposure.
Risks for O'Hare, Midway, and-certain other major properties, along with various special events, losses from certain criminal acts committed by employees and public official bonds are transferred to commercial insurers. Claims have not exceeded the purchased insurance coverage in the past three years. Accordingly, no liability is reported for these claims. All other risks are retained by the City and are self-insured. The City pays claim settlements and judgments from the self-insured programs. Uninsured claim expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. The General Fund is primarily used to record all non-Enterprise Fund claims. The estimated portion of non-Enterprise Fund claims not yet settled has been recorded in the Governmental Activities in the Statement of Net Position as claims payable
90
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
along with amounts related to deferred compensatory time and estimated liabilities for questioned costs. As of December 31, 2016, the total amount of non-Enterprise Fund claims was $508.7 million and Enterprise Fund was $76.7 million. This liability is the City's best estimate based on available information. Changes in the reported liability for all funds are as follows (dollars in thousands):
2015
$540,272
2016
Balance, January 1 $ 572,360
688,800
(656,712) $572,360
Claims incurred and
change in estimates 666,444
Claims paid on current and
prior year events (653,432)
Balance, December 31 $ 585,372
13) Expenditure of Funds and Appropriation of Fund Balances
The City expends funds by classification as they become available, and "Restricted" funds are expended first. If/when City Council formally sets aside or designates funds for a specific purpose, they are considered "Committed." The Mayor (or his/her designee) may in this capacity, also set aside or designate funds for specific purposes and all of these funds will be considered "Assigned." Any remaining funds, which are not specifically allocated in one or more of the previous three categories, are considered "Unassigned" until such allocation is completed.
In addition to the categories above, any amounts that will be used to balance a subsequent year's budget will be considered "Assigned" as Budgetary Stabilization funds. The amounts may vary from fiscal year to fiscal year or depending on the City's budgetary condition, or may not be designated at all. The funds may be assigned by the Mayor or his designee, up to the amount of available "Unassigned" fund balance at the end of the previous fiscal year.
a) Fund Balance Classifications
On the fund financial statements, the Fund Balance consists of the following (dollars in thousands):
General
Nonspendable Purpose:
Inventory $ 23,730
Restricted Purpose:
Capital Projects
Grants
Debt Service
General Government
Committed Purpose:
Budget and Credit Rating Stabilization
Repair, Maintenance and City Services .. Assigned Purpose:
Future obligations 29,115
Special Projects 10,000
Assigned for Future
Appropriated Fund Balance 53,000
Unassigned 153,737
Total Government Fund Balance $ 269,582
Federal, State and Local Grants
11,054
(253,961)
Service Concession and Reserve
Community
Bond, Note Development Other
Redemption Improvement Governmental
and Interest Projects Funds
45,032
$
1,309,819
24,988
267,821
94,143 3,057
640,241
(38,859)
69,528
(1,534,227)
1,309,819 $ (893,986) $ 267,821 $ 45,032 $ 152,857
91
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
At the end of the fiscal year, total encumbrances amounted to $14.1 million for the General Operating Fund, $45.1 million for the Special Taxing Areas Fund, $30.1 million for the Capital Projects Fund and $24.3 million for the Non Major Special Revenue Fund.
14) Deferred Outflows and Inflows of Resources
In accordance with Government Accounting Standards Board Statement No. 63, Financial Reporting of Deferred
t-. - ' QnWnws' of Resources, DeferreWlMbws'of Resouh^esT^ reports deferred outflows' of
resources in the Statement of Net Position in a separate section following Assets. Similarly, the City reports deferred inflows of resources in the Statement of Net Position in a separate section following Liabilities.
The components of the deferred outflows of resources and deferred inflows of resources at December 31,2016 are as follows (dollars in thousands):
$ 5,438,514 229,368
$ 1,097,575
161,842 26,034
Deferred Outflows of Resources:
Deferred outflows from pension activities
Unamortized deferred
bond refunding costs
Derivatives
$ 157,978 1,608,182
Total Deferred Outflows of Resources $ 5,667,882 $ 1,285,451
Deferred Inflows of Resources:
Deferred inflows from pension activities $ 720,224
Total Deferred Inflows of Resources $ 2,254,451 $ 1,766,160
Long-Term lease and
Service concession arrangements 1,534,227
The components of the deferred inflows of resources related to the governmental funds at December 31, 2016 are as follows (dollars in thousands):
Federal, Service Bond, Note
State and Special Concession Redemption Other Total
Local Taxing and and Governmental Governmental
Governmental Funds: Deferred inflow of resources:
Property Taxes
Grants
Charges for Services 11,209
Long-term Lease and
Concession Agreements ¦
General Grants Areas Reserve Interest Pension Funds Funds
$
i - $ 371,156 $ - $ 389,880 $ 599,121 $ 15,122 $ 1,375,279
253,053 .. . 253,053
11,209
- 1,534,227 ; - 1,534,227
Total Governmental Funds $ 11,209 $ 253,053 $ 371,156 $1,534,227 $ 389,880 $ 599,121 $ 15,122 $ 3,173,768
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.
92
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
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, 2016, the Enterprise Funds have entered into contracts for approximately $1,249.3 million for construction projects.
The City's pollution remediation obligation of $33.2 million is primarily related to Brownfield redevelopment projects. 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.
16) 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.
In February 2016, the owners of the Skyway concessionaire sold their ownership interests in the concessionaire to a new entity. Pursuant to the concession and lease agreement for the Skyway, the City approved the transfer of ownership interests.
In May 2016, the concessionaire of the City's downtown underground public parking garages sold its concession interest in the garages to Millennium Parking Garages, LLC. Pursuant to the concession and lease agreement for the garages, the City approved the transfer of the concession interest.
93
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
17) Tax Abatements
GASB Statement No. 77, Tax Abatement Disclosures ("GASB 77"), requires governments that enter into tax abatement agreements to disclose: (1) Brief descriptive information concerning the agreement; (2) The gross dollar amount of taxes abated during the period; and 3) Commitments made by government, other than to abate taxes, that are part of the tax abatement agreement.
Tax Abatement^Aqreemehts Entered in^
The Boeing Company
The City entered into a Tax Reimbursement Payment Agreement with The Boeing Company ("Boeing") on November 1, 2001. A provision in the Illinois Property Tax Code allowed the City to enter into an agreement with Boeing, which qualified as an Eligible Business, as defined, under the Corporate Headquarters Relocation Act (the "Act"). The Act allows the City to make annual payments to Boeing in an amount not to exceed the property taxes paid, directly or indirectly, by Boeing to the City and other taxing districts for premises occupied as its Corporate Headquarters pursuant to a written lease. The relocation of Boeing constitutes a substantial public benefit from its creation of not less than 500 permanent FTE jobs and through payment of various taxes and governmental charges will foster further economic growth and development in the City.
Boeing must submit for each year of the agreement an Annual Reimbursement Form to the City for reimbursement of an amount equal to the portion of the Boeing General Real Estate Taxes paid during such calendar year to the City, the Chicago School Finance Authority, the Board of Education of the City of Chicago and the City Public Library Fund, in aggregate. Together with the form, Boeing must be in compliance with the terms of the agreement and must provide the City all documents stipulated on the agreement. This includes evidence that Boeing continues to qualify as an Eligible Business and has at least $25.0 million in annual worldwide revenues, satisfaction of the MBEA/VBE requirements, compliance with the resident hiring and prevailing wage requirements, employment of a minimum of 500 full time employees within Chicago, and leasing and occupying not less than 125,000 rentable square feet in Chicago, among other requirements.
The above listed property taxes are reduced by way of a reimbursement to Boeing in an amount equal to the allocable share of the real estate taxes. The City is entitled to terminate the agreement or recover certain payments if Boeing defaults on their commitments. For the 2016 reporting period, the tax reimbursement to Boeing totaled $1.4 million
Tax Increment Financing
The City adopted certain ordinances approving various redevelopment plans pursuant to provisions of the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11 -7 4.4-1 (the "Act"). The redevelopment plans designate a "redevelopment project area" under the Act, and adopt tax increment allocation financing for each redevelopment project area.
In an effort to promote redevelopment and finance construction projects in the redevelopment project areas to eradicate blighted conditions, the City uses tax increment financing to reimburse developers for the costs of the TIF-funded improvements pursuant to the terms and conditions of redevelopment agreements entered into by the City and a developer. Projects range from new construction to redevelopment and expansion initiatives throughout the city. The maximum reimbursable amount is set forth in each agreement. If the total project cost is lower than the project budget established in the agreement, the reimbursable amount will be prorated.
For the 2016 reporting period, the amount of property tax revenue forgone by the City due to the agreements under the Tax Increment Allocation Redevelopment Act amounts to $90.3 million on an accrual basis of accounting.
94
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
Tax Abatement Agreements Entered Into By Other Governments Cook County
Cook County provides tax reductions under numerous programs with individuals, local businesses, and developers. The objective of the agreements is to encourage the development and rehabilitation of new and existing industrial and commercial property, reutilization of abandoned property, and increase multi-family residential affordable rental housing throughout Cook County by offering a real estate tax incentive. An eligibility application must be filed prior to commencement of a project and include a resolution from the municipality where the real estate is located. Once the project has been completed, the applicant must file an Incentive Appeal Form with the County Assessor's Office. Upon approval by the County Assessor's Office and based on the property classification, the applicant is eligible to receive one of the following tax incentives:
Property will be assessed at 10% of market value for the first 10 years, 15% in the 11th year and 20% in the 12th year.
Property will be assessed at 10% of market value for the first 3 years, 15% in the 4th year and 20% in the 5th year.
Property will be assessed at 10% of the market value for ten years from the date of completion of major rehabilitation.
In the absence of the incentive, the property tax would be assessed at 25% of its market value. This incentive constitutes a substantial reduction in the level of assessment and results in significant tax savings for eligible applicants. For the 2016 reporting period, the amount of property tax revenue forgone by the City due to these incentives is estimated at $11.5 million.
18) Subsequent Events
Ratings
In February 2017, Fitch Ratings (Fitch) downgraded the rating of the Motor Fuel Tax revenue bonds from BBB to BBB-, with a negative outlook.
In May 2017, Fitch downgraded ratings of the Senior Lien Water revenue bonds from AA+ to AA, with a negative outlook.
In May 2017, Fitch downgraded ratings of the Second Lien Water revenue bonds from AA to AA-, with a negative outlook.
In May 2017, Fitch downgraded ratings of the Senior Lien Wastewater Transmission revenue bonds from AA to AA-, with a negative outlook.
In June 2017, S&P downgraded the rating of the Motor Fuel Tax revenue bonds from BBB- to BB+ with a negative outlook.
Bonds
In January 2017, the City sold O'Hare International Airport General Airport Senior Lien Revenue Bonds Series 2016DEFG ($1,117.3 million). The 2016D bonds were issued at interest rates between 5.00% and 5.25% and mandatory sinking fund or maturity dates between January 1, 2020 and January 1, 2052. The 2016E bonds were issued at interest rates between 5.00% and 5.25% and maturity dates between January 1, 2024 and January 1, 2028. The 2016F bonds were issued at interest rates between 2.00% and 5.25% and mandatory sinking fund or maturity dates between January 1, 2018 and January 1, 2052. The 2016G bonds were issued at interest rates between 5.00% and 5.25% and mandatory sinking fund or maturity dates between January 1, 2020 and January
95
CITY OF CHICAGO, ILLINOIS
NOTES TO BASIC FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2016
1, 2052. Proceeds will be used to pay the cost of certain airport projects, fund reserve requirements for the bonds, fund capitalized interest, and pay costs of issuance.
In January 2017, the City sold General Obligation Project and Refunding Series 2017A ($886.0 million) and Taxable Project Series 2017B ($274.3 million). The 2017A bonds were issued at interest rates between 5.625% and 6.0% and maturity dates between January 1, 2029 and January 1, 2038. The 2017B bonds were issued at an interest rate of 7.045% and mandatory sinking fund or maturity dates ranging from January 1, 2021 and
v'~"":"^anua^
settlements, to refund or pay interest on all or a portion of certain outstanding General Obligation bonds, fund capitalized.interest, and pay costs of issuance.
In February 2017, the City completed a refinancing of the outstanding Michael Reese Loan. The City secured a lower, fixed interest rate of 3.55%, with the same maturity date of June 30, 2024. Principal payments will be made semi-annually with the first semi-annual principal payment on the refinanced loan due on June 30, 2019.
In June 2017, the City sold Second Lien Wastewater Transmission Revenue Bonds, Project Series 2017A ($180.6 million) and Refunding Series 2017B ($215.5 million). The 2017A bonds were issued at interest rates between 4.0% and 5.25% and mandatory sinking fund or maturity dates between January 1, 2020 and January 1, 2052. The 2017B bonds were issued at an interest rate of 5.0 % and maturity dates between January 1, 2018 and January 1, 2038. Proceeds will be used to finance capital improvements of the Wastewater Transmission System, to refund a portion of certain outstanding wastewater transmission bonds, and pay costs of issuance.
In June 2017, the City sold Second Lien Water Revenue Refunding Bonds, Series 2017 ($199.4 million). The 2017 bonds were issued at interest rates between 5.0% and 5.25% and maturity dates between November 1, 2017 and November 1, 2036. Proceeds will be used to refund a portion of certain outstanding water bonds and pay costs of issuance.
In June 2017, the City sold O'Hare International Airport General Airport Senior Lien Revenue and Revenue Refunding Bonds Series 2017ABCD ($812.4 million). The 2017A bonds were issued at interest rates between 3.125% and 5.00% and mandatory sinking fund or maturity dates between January 1, 2021 and January 1, 2040. The 2017B bonds were issued at an interest rate of 5.00% with maturity dates between January 1, 2018 and January 1, 2039. The 2017C bonds were issued at interest rates between 4.00% and 5.00% and mandatory sinking fund or maturity dates between January 1, 2019 and January 1, 2041. The 2017D bonds were issued at an interest rate of 5.00% and mandatory sinking fund or maturity dates between January 1, 2022 and January 1, 2052. Proceeds will be used to refund a portion of certain outstanding airport bonds, pay the cost of certain airport projects, fund reserve requirements for the bonds, fund capitalized interest, and pay costs of issuance.
Commercial Paper and Lines of Credit
As of December 31, 2016, the outstanding balance for the City's General Obligation Line of Credit was $124.2 million. Since January 1, 2017, the City has not executed any additional draws and has paid down $81.7 million. The City's repayment obligation under the line of credit is a general obligation of the City. The line of credit expires September 24, 2019.
In May 2017, the City drew $30.0 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 are being used to finance
a portion of the cost of authorized airport projects
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97
REQUIRED SUPPLEMENTARY INFORMATION CITY OF CHICAGO, ILLINOIS
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Last Two Fiscal Years (dollars are in thousands)
Municipal Employees': 2016 2015
Total pension liability
Service cost $ 619,743 $ 226,816
^Tnte?eli^ 878,369 '" ' ' " " 909,067"
Benefit changes - 2,140,009
Differences between expected and actual experience (127,119) (109,835)
Assumption changes (578,920) ~ 8,711,755
Benefit payments including refunds (859,672) (826,036)
Pension plan administrative expense - -
Net change in total pension liability $ (67,599) $ 11,051,776
Total pension liability - beginning 23,358,870 12,307,094
Total pension liability - ending (a) $ 23,291,271 $ 23,358,870
Plan fiduciary net position
Contributions-employer $ 149,718 $ 149,225
Contributions-employee 130,391 131,428
Net investment income 281,419 114,025
Benefit payments including refunds of employee contribution (859,672) (826,036)
Administrative expenses (7,056) (6,701)
Other
Net change in plan fiduciary net position $ (305,200) $ (438,059)
Plan fiduciary net position - beginning 4,741,427 5,179,486
Plan fiduciary net position - ending (b) $ 4,436,227 $ 4,741,427
Net pension liability - ending (a)-(b) $ 18,855,044 $ 18,617,443
Plan fiduciary net position as a percentage of the total
pension liability 19.05% 20.30 %
Covered-employee payroll* $ 1,646,939 $ 1,643,481
Employer's net pension liability as a percentage of
covered-employee payroll 1,144.85 % 1,132.81 %
*Covered employee payroll is the amount in force as of the valuation date and likely differs from actual payroll paid during fiscal year.
Note:
Beginning with fiscal year 2015, the City will accumulate ten years of data.
98
REQUIRED SUPPLEMENTARY INFORMATION CITY OF CHICAGO, ILLINOIS
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - Continued Last Two Fiscal Years (dollars are in thousands)
Laborers': 2016 2015
*
Total pension liability
Service cost $ 82,960 * $ 38,389
Interest 150,166 153,812
Benefit changes - 384,033
Differences between expected and actual experience (30,428) (46,085)
Assumption changes (62,905) 1,175,935
Benefit payments including refunds (154,683) (152,530)
Pension plan administrative expense (4,080) (3,844)
Net change in total pension liability $ (18,970) $ 1,549,710
Total pension liability - beginning 3,712,615 2,162,905
Total pension liability - ending (a) $ 3,693,645 $ 3,712,615
Plan fiduciary net position
Contributions-employer $ 12,603 $ 12,412
Contributions-employee 17,246 16,844
Net investment income 57,997 (22,318)
Benefit payments including refunds of employee contribution (154,683) (152,530)
Administrative expenses (4,080) (3,844)
Other
Net change in plan fiduciary net position $ (70,917) $ (149,436)
Plan fiduciary net position - beginning 1,238,657 1,388,093
Plan fiduciary net position - ending (b) $ 1,167,740 $ 1,238,657
Net pension liability - ending (a)-(b) $ 2,525,905 $ 2,473,958
Plan fiduciary net position as a percentage of the total
pension liability 31.61 % 33.36 %
Covered-employee payroll ** $ 208,155 $ 204,773
Employer's net pension liability as a percentage of
covered-employee payroll 1,213.47% 1,208.15 %
* Includes pension plan administrative expense
" Covered employee payroll is the amount in force as of the valuation date and likely differs from actual payroll paid during fiscal year. Note:
Beginning with fiscal year 2015, the City will accumulate ten years of data.
99
REQUIRED SUPPLEMENTARY INFORMATION CITY OF CHICAGO, ILLINOIS
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - Continued Last Two Fiscal Years (dollars are in thousands)
Policemen's: 2016
Total pension liability
Service cost $ 220,570
interest .r-_^,7 ,,,--,851,098-
Benefit changes 606,250
Differences between expected and actual experience 1,801
Assumption changes 112,585
Benefit payments including refunds (707,196)
Pension plan administrative expense (4,750)
Net change in total pension liability $ 1,080,358
Total pension liability - beginning 12,032,733
Total pension liability - ending (a) $ 13,113,091
2015
213,585 *
. . 832,972
(105,969)
(676,777) (4,508)
259,303
11,773,430
12,032,733
Plan fiduciary net position
Contributions-employer $
Contributions-employee
Net investment income
Benefit payments including refunds of employee contribution
Administrative expenses
Other
Net change in plan fiduciary net position $
272,428 101,476 142,699 (707,196) (4,750) 1,413
(193,930) $
572,836 107,626 (5,334) (676,777) (4,508) 3,092
(3,065)
Plan fiduciary net position - beginning 3,058,949
Plan fiduciary net position - ending (b) $ 2,865,019
Net pension liability - ending (a)-(b) $ 10,248,072 $
Plan fiduciary net position as a percentage of the total
pension liability 21.85 %
Covered-employee payroll** $ 1,119,527 $ 1,086,608
Employer's net pension liability as a percentage of
covered-employee payroll
* Includes pension plan administrative expense
** Covered employee payroll is the amount in force as of the valuation date and likely differs from actual payroll paid during fiscal year.
Note:
Beginning with fiscal year 2015, the City will accumulate ten years of data.
100
REQUIRED SUPPLEMENTARY INFORMATION CITY OF CHICAGO, ILLINOIS
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - Concluded
Last Two Fiscal Years (dollars are in thousands)
Firemen's: 2016 2015
Total pension liability
Service cost $ 94,115 * $ 87,203
Interest 342,085 338,986
Benefit changes 227,213
Differences between expected and actual experience 24,110 (7,981)
Assumption changes (74,373) 176,282
Benefit payments including refunds (286,759) (278,017)
Pension plan administrative expense (3,217) (3,149)
Net change in total pension liability $ 323,174 $ 313,324
Total pension liability - beginning 4,826,084 4,512,760
Total pension liability - ending (a) $ 5,149,258 $ 4,826,084
Plan fiduciary net position
Contributions-employer $ 154,101 $ 236,104
Contributions-employee 48,960 46,552
Net investment income 60,881 7,596
Benefit payments including refunds of employee contribution (286,759) (278,017)
Administrative expenses (3,217) (3,149)
Other (53)|910|Net change in plan fiduciary net position $ (26,087) $ 9,093
Plan fiduciary net position - beginning 1,045,101 1,036,008
Plan fiduciary net position - ending (b) $ 1,019,014 $ 1,045,101
Net pension liability - ending (a)-(b) $ 4,130,244 $ 3,780,983
Plan fiduciary net position as a percentage of the total
pension liability 19.79% 21.66%
Covered-employee payroll" $ 478,471 $ 465,232
Employer's net pension liability as a percentage of
covered-employee payroll 863.22 % 812.71 %
* Includes pension plan administrative expense
** Covered employee payroll is the amount in force as of the valuation date and likely differs from actual payroll paid during fiscal year. Note:
Beginning with fiscal year 2015, the City will accumulate ten years of data.
101
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF CHICAGO, ILLINOIS
SCHEDULE OF CONTRIBUTIONS
Last Ten Years (cioiiars are in thousands)
Municipal Employees':
Years Ended December 31,
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
~'=^cfuarially"''' Determined Contributions*
$
343,123 360,387 413,509 483,948 611,756 690,823 820,023 839,039 677,200 961,770
Contributions in Relation to '""llTFActuarially Determined Contribution
$
139,606 146,803 148,047 154,752 147,009 148,859 148,197 149,747 149,225 149,718
Contribution Deficiency
203,517 $
213,584
265,462
329,196
464,747
541,964
671,826
689,292
527,975
812,052
Covered Employee Payroll**
1,564,459 1,543,977 1,551,973 1,541,388 1,605,993 1,590,794 1,580,289 1,602,978 1,643,481 1,646,939
Contributions as a percentage of ' Covered Employee Payroll
8.92 9.51 9.54 10.04 9.15 9.36 9.38 9.34 9.08 9.09
* The funding method mandated by the Illinois Pension Code is insufficient to avoid insolvency, and without a change, the Fund is projected to become insolvent within the next 10 years (during 2025). Therefore, the actuarially determined contribution is comprised of an employer normal cost payment and a 30-year, level dollar amortization payment on the unfunded actuarial accrued liability.
** Covered payroll is the amount in force as of the valuation date and likely differs from actual payroll paid during fiscal year.
Laborers':
Years Ended December 31,
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Actuarially Determined Contributions * 21,726 17,652 33,518 46,665 57,259 77,566 106,199 106,019 79,851 117,033
Contributions in Relation to the Actuarially Determined Contribution
13,256 $
15,233
14,627
15,352
12,779
11,853
11,583
12,161
12,412
12,603
Contribution Deficiency
8,470 $
2,419 18,891 31,313 44,480 65,713 94,616 93,858 67,439 104,430
Covered Employee Payroll **
192,847 216,744 208,626 199,863 195,238 198,790 200,352 202,673 204,773 208,155
Contributions as a percentage of Covered Employee Payroll
6.87 7.03 7.01 7.68 6.55 5.96 5.78 6.00 6.06 6.05
* The LABF Statutory Funding does not conform to Actuarial Standards of Practice, therefore, the actuarially determined contribution is equal to the normal cost plus an amount to amortize the unfunded liability using dollar payments and a 30 year open amortization period.
Covered payroll is the amount in force as of the valuation date and likely differs from actual payroll paid during fiscal year.
102
REQUIRED SUPPLEMENTARY INFORMATION CITY OF CHICAGO, ILLINOIS SCHEDULE OF CONTRIBUTIONS - Continued Last Ten Years (dollars are in thousands)
Policemen's:
Years Ended December 31.
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Actuarially Determined Contributions * 312,726 318,235 339,488 363,625 402,752 431,010 474,177 491,651 785,501 785,695
Contributions in Relation to the Actuarially Determined Contribution 170,598 172,836 172,044 174,501 174,035 197,885 179,521 178,158 575,928 273,840
Contribution Deficiency
142,128 $
145,399
167,444
189,124
228,717
233,125
294,656
313,493
209,573
511,855
Covered Employee Payroll **
1,038,957 1,023,581 1,011,205 1,048,084 1,034,404 1,015,171 1,015,426 1,074,333 1,086,608 1,119,527
Contributions as a percentage of Covered Employee Payroll
16.42 16.89 17.01 16.65 16.82 19.49 17.68 16.58 53.00 24.46
* The PABF Statutory Funding does not confrom to Actuarial Standards of Practice; therefore, the 2015 and 2016 actuarially determined contribution is equal to the normal cost plus a 30-year closed level dollar amortization of the unfunded actuarial liability. Prior to 2015 the actuarially determined contribution was equal to the "ARC" which was equal to normal cost plus a 30-year open level percent amortization of the unfunded actuarial liability.
" Covered payroll is the amount in force as of the valuation date and likely differs from actual payroll paid during fiscal year.
Firemen's:
Years Ended December 31,
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Actuarially Determined Contributions * 188,202 189,941 203,867 218,388 250,056 271,506 294,878 304,265 323,545 333,952
Contributions in Relation to the Actuarially Determined Contribution 72,023 81,258 89,212 80,947 82,870 81,522 103,669 107,334 236,104 154,101
Contribution Deficiency
116,179 $ 108,683 114,655 137,441 167,186 189,984 191,209 196,931 87,441 179,851
Covered Employee Payroll **
389,125 396,182 400,912 400,404 425,385 418,965 416,492 460,190 465,232 478,471
Contributions as a percentage of Covered Employee Payroll
18.51 20.51 22.25 20.22 19.48 19.46 24.89 23.32 50.75 32.21
* The FABF Statutory Funding does not conform to Actuarial Standards of Practice, therefore, the actuarially determined contribution is equal to the normal cost plus an amount to amortize the unfunded liability using dollar payments and a 30 year open amortization period. Amounts for fiscal years prior to 2015 were based on the "ARC" which was equal to normal cost plus an amount to amortize the unfunded liability using a 30-year open period level dollar amortization.
** Covered payroll is the amount in force as of the valuation date and likely differs from actual payroll paid during fiscal year.
103
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF CHICAGO, ILLINOIS
SCHEDULE OF CONTRIBUTIONS - Concluded
Actuarial Methods Municipal
and Assumptions: Employees' Laborers' Policemen's Firemen's
Actuarial valuation date 12/31/2016 (a) 12/31/2016 (b) 12/31/2016 12/31/2016
Actuarial cost method Entry age normal Entry age normal Entry age normal Entry age normal
Amortization method Level dollar, open Level dollar, open (c) Level percent, open Level dollar, open
Remaining amortization period 30 years 30 years 30 years 30 years
Asset valuation method 5-yr. Smoothed 5-yr. Smoothed 5-yr. Smoothed 5-yr. Smoothed
Market Market Market Market
Actuarial assumptions:
Inflation 3.0% 3.0% 2.8% 2.5%
Salary increases 4.5%-8.25% (d) 3.75% (e) 3.75% (f) 3.75% (f)
Investment rate of return 7.5% (g) 7.5% (h) 7.25% 7.5%
Retirement Age (i) (j) (k) (I)
Mortality (m) (n) (o) (p)
Other information (q) (r) (s) (s)
Actuarially determined contribution amount is determined as of December 31, with appropriate interest to the middle of the year.
Actuarially determined contribution rates are calculated as of December 31, which is 12 months prior to the end of the fiscal year in which contributions are reported.
(c) The statutory contributions are based on a multiple of member contributions from the second prior year. The statutory contribution multiple is 1.00
Varying by years of service.
Plus a service-based increase in the first 15 years.
Salary increase rates based on age-related productivity and merit rates plus inflation.
Net of investment expense.
Net of investment expense, including inflation.
(i) For employees first hired prior to January 1,2011, rates of retirement are based on the recent experience of the Fund (adopted December 31,2010).
For employees first hired on or after January 1,2011, rates of retirement for each age from 62 to 80 were used (adopted Decemebr 31,2011).
G) Experience-based table of rates that are specific to the type of eligibility condition. Last updated for the December 31,2012, valuation pursuant to an
experience study of the period January 1,2004, through December 31,2011. (k) Experience-based table of rates that are specific to the type of eligibility condition. Last updated for the December 31,2014, actuarial valuation
pursuant to an experience study of the period January 1,2009, through December 31,2013. (I) Experience-based table of rates that are specific to the type of eligibility condition. Last updated for the December 31,2011, valuation pursuant to an
experience study of the period January 1,2003, through December 31,2010. (m) Post-retirement mortality rates were based on the RP-2000 Healthy Mortality Tables with mortality improvements projected to 2010 using Scale AA.
Pre-retirement mortality rates were based on the post-retirement mortality assumption, multiplied by 85% for males and 70% for females, (n) RP2000 Combined Healthy mortality table, sex distinct, set forward one year for males and setback two years for females. No adjustment is made
for post-disabled mortality.
(o) Post-Retirement Healthy mortality rates: Sex distinct Retirement Plans 2014 Healthy Annuitant mortality table weighted 108% for males and 97% for females. Pre-Retirement mortality rates: Sex distinct Retirement Plans 2014 Total Employee mortality table weighted 85% for males and 115% for females. Disabled Mortality: Sex distinct Retirement Plans 2014 Healthy Annuitant mortality table weighted 115% for males and 115% for females.
(p) RP2000 Combined Healthy mortality table, sex distinct for post retirement mortality. RP2000 Combined Healthy mortality table, sex distinct, set forward six years for post retirement mortality post-disabled mortality. Pre-retirement mortality is 80 percent of the post-retirement rates.
(q) Other assumptions: Same as those used in the December 31,2016, actuarial funding valuations.
(r) There were no benefit changes during the year.
(s) The valuation is based on the statutes in effect as of December 31,2016. Benefit changes as aresult of PA 99-0506 were recognized in the Total Pension Liability as of December 31,2016.
104
REQUIRED SUPPLEMENTARY INFORMATION CITY OF CHICAGO, ILLINOIS
SCHEDULE OF OTHER POSTEMPLOYMENT BENEFITS FUNDING PROGRESS Last Three Years (dollars are in thousands)
Actuarial
Accrued
Actuarial Liability
Actuarial Value (AAL)
Valuation of Assets Entry Age
Date _aj ( b )
City of Chicago
Unfunded
Unfunded (Surplus)
Actuarial AAL as a
Accrued Percentage
Liability Funded Covered of Covered
(UAAL) Ratio Payroll Payroll
( b-a ) (a/b) (_cj (( b-a )/c)
Settlement Plan
12/31/2013 - $ 498,205
12/31/2014 - 311,748
12/31/2015 - 254,910
CBA Special Benefits
12/31/2013 - $ 466,421
12/31/2014 - 468,889
2016 12/31/2015 - 460,612
$ 498,205 - % $ 2,425,000 20.54 %
311,748 - 2,487,787 12.53
254,910 - 2,563,649 9.94
$ 466,421 - % $ 1,400,269 33.31 %
468,889 - 1,438,428 32.60
460,612 - 1,499,552 30.72
105
CITY OF CHICAGO, ILLINOIS
STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL PENSION FUND (BUDGETARY BASIS) Year Ended December 31, 2016 (Amounts are in Thousands of Dollars)
Original Final Actual
Budget Budget Amounts Variance
Revenues:
"_Property Taxes $ 785,956 $ 785,956 $ '747,957 $ (37,999)
Miscellaneous 192,294 192,294 50,953 (141,341)
Transfers In -__ -_ 11,587 11,587
Total Revenues 978,250 978,250 810,497 (167,753)
Expenditures: Current:
City Contribution to -Municipal Employees' Annuity
and Benefit Fund 277,714 277,714 170,195 107,519
City Contribution to -Laborers' Employees' Annuity
and Benefit Fund 28,536 28,536 15,807 12,729
City Contribution to -Policemen's Employees' Annuity
and Benefit Fund 464,000 464,000 415,500 48,500
City Contribution to -Firemen's Employees' Annuity
and Benefit Fund 208,000 208,000 208,995 (995)
Total Expenditures 978,250 978,250 ,810,497 . 167,753
Revenues Over Expenditures $ - $ - _> - _$ -
See notes to basic financial statements.
106
COMBINING AND INDIVIDUAL FUND STATEMENTS GENERAL FUND
107
Schedule A-1
CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016 (Amounts are in Thousands of Dollars)
Original Budget
Final Budget
Actual Amounts
Variance Positive (Negative)
LOCAL TAX REVENUE UTILITY TAX:
Gas $
Electric
Telecommunication
Commonwealth Edison
Cable Television
Total Utility Tax _
SALES TAX:
Home Rule Retailers' Occupation
TRANSPORTATION TAX:
Parking
Vehicle Fuel
Ground Transportation
Total Transportation Tax
TRANSACTION TAX:
Real Property
Personal Property Lease
Motor Vehicle Lessor
Total Transaction Tax
RECREATION TAX:
Amusement
Automatic Amusement
Liquor
Boat Mooring
Cigarette
Off Track Betting
Soft Drink
Total Recreation Tax
BUSINESS TAX:
Hotel
Foreign Fire Insurance
Total Business Tax
TOTAL LOCAL TAX REVENUE
123/100 98,200
100,200 90,300 29,200
441,000
315,883
130,500 49,120 60,825
.240,445
160,000 177,900 6,800
344,700
139,000 490 32,700 1,320 21,600 506 22,400
218,016
109,500 4,400
113,900
1,673,944
7237100' 98,200
100,200 90,300 29,200
441,000
315,883
130,500 49,120 60,825
240,445
160,000 177,900 6,800
344,700
139,000 490 32,700 1,320 21,600 506 22,400
218,016
109,500 4,400
113,900
1,673,944
494 3,377 1,136
415
S"": 111,037 $'" (12,013)
(6,591)
98,694 103,577 91,436 29,615
(7,794)
434,409
3,964 3,922 (1,231)
308,089
6,655
134,464 53,042 59,594
37,080 82,039 (212)
247,100
118,907
197,080 259,939 6,588
24,563 9
437 12 1,531 86 1,954
463,607
163,563 499 33,137 1,332 23,131
28,592
24,354
4,000 985
246,608
4,985
113,500 5,385
144,754
118,885
1,818,698
108
Schedule A-1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016 (Amounts are in Thousands of Dollars)
Original Budget
Final Budget
Actual Amounts
Variance Positive (Negative)
INTERGOVERNMENTAL REVENUE
STATE INCOME TAX:
Income $ 265,300
Personal Property Replacement 170,400
Total State Income Tax 435,700
STATE SALES TAX:
State Retailers' Occupation 361,900
STATE AUTO RENTAL TAX:
Municipal Auto Rental 4,400
FEDERAL/STATE GRANTS:
Grants 1,800
TOTAL INTERGOVERNMENTAL REVENUE 803,800
LOCAL NON-TAX REVENUE
INTERNAL SERVICE:
Water Fund 88,407
Chicago-O'Hare International Airport Fund 23,928
Vehicle Tax Fund 16,768
Chicago Midway International Airport Fund 7,670
Federal Funds 18,109
Sewer Fund 48,367
Emergency Communication Fund 96,405
Federal Funds - Pensions 28,232
Intergovernmental Vouchers (IV) 9,331
Transportation 3,921
Department of Fleet and Facility Management 6,960
Miscellaneous - Planning, Purchasing, etc 4,933
Public Safety - Police, Fire and OEMC 843
Other 4,668
Total Internal Service 358,542
LICENSES AND PERMITS:
Alcoholic Liquor Dealers' License 11,800
Business License 18,500
Building Permits 45,116
Fines and Penalties 6,500
Other 43,307
Total Licenses and Permits 125,223
265,300 170,400
435,700
361,900
4,400
1,800
803,800
88,407 23,928 16,768 7,670 18,109 48,367 96,405 28,232 9,331 3,921 6,960 4,933 843 4,668
358,542
11,800 18,500 45,116 6,500 43,307
125,223
253,968 $ 159,705
413,673
366,426
4,223
1,869
786,191
88,407 23,928 16,768 7,670 16,485 48,367 96,400 16,398 8,733 4,438 5,539 3,600 178 5,695
342,606
12,206 18,529 43,483 7,925 48,256
130,399
(11,332) (10,695)
(22,027)
4,526
(177)
69
(17,609)
(1,624) (5)
(11,834) (598) 517 (1,421) (1,333) (665) 1,027
(15,936)
406 29 (1,633) 1,425 4,949
5,176
109
Schedule A-1 - Concluded CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016 (Amounts are in Thousands of Dollars)
Original Budget
LOCAL NON-TAX REVENUE - Concluded
FINES: ___
Fines, Forfeitures and Penalties $ 350,500
INVESTMENT INCOME:
Interest on Investments 4,400
CHARGES FOR SERVICES:
Inspection 13,515
Information 605
Safety 67,500
Sanitation ;. 62,700
Reimbursement of Current Expense 6,100
Other 24,443
Total Charges for Services 174,863
MUNICIPAL UTILITIES:
Parking 10,105
Total Municipal Utilities 10,105
LEASES, RENTALS AND SALES:
Sale of Land and Buildings 19,225
Vacation of Streets and Alleys 2,000
Sale of Impounded Autos 42
Sale of Materials 1,200
Rentals and Leases 13,561
Total Leases, Rentals and Sales 36,028
MISCELLANEOUS:
Property Damage 150
Other 69,900
Total Miscellaneous 70,050
TOTAL LOCAL NON-TAX REVENUE 1,129,711
Transfers In 26,000
Total Revenues $ 3,633,455
Final Budget
Actual Amounts
Variance Positive (Negative)
8,251
3,851
350,500 $ 316,368 $ (32,112)
13,130 1,526
77,335
54,365 6,296
32,544
13,515 605 67,500 62,700 6,100 24,443
4,400
174,863
185,196
(385) 921 9,835 (8,335) 196 8,101
10,105
7,476
10,333
7,476
10,105
(2,629)
9,601 2,181 15 1,278 13,036
19,225 2,000 42 1,200
13,561
(2,629)
26,111
36,028
(9,624) 181 (27) 78 (525)
. 111 59,185
.150 69,900
(9,917)
70,050
59,296
(39) (10,715)
1,129,711
1,077,723
(10,754)
26,000
14,998
(51,988)
(11,002)
$ 3,633,455 $ 3,697,610 $ 64,155
110
Schedule A-2
CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
Original Budget
Final Budget
GENERAL GOVERNMENT
OFFICE OF THE MAYOR - 01 -
2005.0000-Personnel Services $ 5,965,114
2005.0100-Contractual Services 250,721
2005.0200-Travel 24,832
2005.0300-Commodities and Materials 36,000
Total 6,276,667
OFFICE OF THE INSPECTOR GENERAL - 03 -
2005.0000-Personnel Services 2,630,869
2005.0100-Contractual Services 318,520
2005.0200-Travel 4,433
2005.0300-Commodities and Materials 9,773
2005.0700-Contingencies 4,283
Total 2,967,878
OFFICE OF BUDGET AND MANAGEMENT - 05 -
2005.0000-Personnel Services 2,296,393
2005.0100-Contractual Services 49,295
2005.0200-Travel 1,000
2005.0300-Commodities and Materials 5,800
Total 2,352,488
DEPARTMENT OF INNOVATION AND TECHNOLOGY - 06 -
2005.0000-Personnel Services 8,615,408
2005.0100-Contractual Services 9,236,310
2005.0200-Travel 4,500
2005.0300-Commodities and Materials 26,743
Total 17,882,961
CITY COUNCIL COMMITTEES CITY COUNCIL -15-
2005.0000-Personnel Services 15,570,156
2005.0100-Contractual Services 70,150
2005.0200-Travel 1,000
2005.0700-Contingencies 43,000
2005.0982-Order of The City Council 1,000
2005.9008-Aldermanic Expense Allowance 4,850,000
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
5,965,114 250,721 24,832 36,000
6,276,667
2,960,737 342,652 4,433 9,773 4,283
3,321,878
2,296,393 49,295 1,000 5,800
2,352,488
8,615,408 9,236,310 4,500 26,743
17,882,961
15,570,156 70,150 1,000 43,000 1,000 4,850,000
92,072
6,307,504 213,962 22,662 29,759
6,573,887
2,534,070 342,426 4,433 8,774 4,283
2,893,986
2,271,148 21,080 354 4,217
2,296,799
7,505,137 8,598,695 3,321 6,342
16,113,495
15,232,308 66,585
43,000
4,545,224
78,469
111
Schedule A-2 Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
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 20,631,378 20,631,378 19,965,586
COMMITTEE ON FINANCE - 15 -
2010.0000-Personnel Services
2010.0100-Contractual Services
2010.0200-Travel
2010.0300-Commodities and Materials
2010.0700-Contingencies
The Payment of Legal Fees Pursuant to Sec. 2-152-170 of the Municipal Code:
To Be Expended at the Direction
of the Committee on Finance
Legal Assistance to The City Council:
To Be Expended at the Direction of the
Chairman of the Committee on Finance
2010.9010-Legal, Technical, Medical and Professional Services, Appraisals, Consultants, Printers, Court Reporters and Contractual Services: To Be Expended at the Direction of the
Chairman of the Committee on Finance
Total .'
1,809,864 1,809,864 1,519,797
138,400 138,400 126,552
8,000 ¦ 8,000 (23)
51,500 51,500 51,499
100 100
50,000 50,000 10,306
50,000 50,000
92,500 92,500 34,268
2,200,364 2,200,364 1,742,399
COUNCIL OFFICE OF FINANCIAL ANALYSIS - 15 -
2012.0000-Personnel Services 258,924 258,924 243,038
2012.0700-Contingencies 25,000 25,000 1,519
Total 283,924 283,924 244,557
LEGISLATIVE INSPECTOR GENERAL
2015.0100-Contractual Services 354,000
Total 354,000
COMMITTEE ON THE BUDGET AND GOVERNMENT OPERATIONS - 15-
2214.0000-Personnel Services 482,812 482,812 771,093
2214.0100-Contractual Services 15,000 15,000 14,613
2214.0300-Commodities and Materials 12,000 12,000 11,983
112
Schedule A-2 Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
Original Final
Budget Budget Actual
GENERAL GOVERNMENT - Continued
CITY COUNCIL COMMITTEES - Continued
COMMITTEE ON THE BUDGET AND GOVERNMENT OPERATIONS - 15 - Concluded
2214.0400-Equipment $ 9,500
2214.0700-Contingencies 15,000
Total 534,312
COMMITTEE ON AVIATION - 15 -
2220.0000-Personnel Services 105,928
2220.0100-Contractual Services 200
2220.0300-Commodities and Materials 500
2220.0700-Contingencies 750
Total 107,378
COMMITTEE ON LICENSE AND CONSUMER PROTECTION-15-
2225.0000-Personnel Services 105,143
2225.0100-Contractual Services 7,500
2225.0300-Commodities and Materials 10,500
Total 123,143
9,500 15,000
534,312
105,928 200 500 750
107,378
105,143 7,500 10,500
123,143
9,492 14,998 822,179
106,572
106,572
125,889 6,612 499 133,000
COMMITTEE ON PUBLIC SAFETY - 15 -
2235.0000-Personnel Services
2235.0100-Contractual Services
2235.0300-Commodities and Materials
2235.0700-Contingencies
Total
156,230 156,230 192,125
1,000 1,000 964
1,000 1,000 978
500 500 483
158,730 158,730 194,550
COMMITTEE ON HEALTH AND ENVIROMENTAL PROTECTION-15-
2240.0000-Personnel Services 90,300 90,300 88,379
2240.0100-Contractual Services 200 200
2240.0300-Commodities and Materials 800 800
2240.0700-Contingencies 500 500 -
Total 91,800 91,800 88,379
COMMITTEE ON COMMITTEES, RULES AND ETHICS-15-
2245.0000-Personnel Services 103,008 103,008 119,075
2245.0100-Contractual Services 40,000 40,000 39,999
2245.0300-Commodities and Materials 500 500 499
Total 143,508 143,508 159,573
113
Schedule A-2 Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
Original Final
Budget Budget Actual
GENERAL GOVERNMENT - Continued
,=-,- CITY^COUNCIL'COMMITTEES - Continued - - - - • -----^^^^
COMMITTEE ON ECONOMIC, CAPITAL AND TECHNOLOGY DEVELOPMENT - 15 -
2255.0000-Personnel Services
2255.0100-Contractual Services
2255.0300-Commodities and Materials
2255.0700-Contingencies
Total
$ 100,564 $ 101,964 $ 99,404
1,000
500 100 97
1,000. 1,000 564
103,064 103,064 100,065
COMMITTEE ON PARKS AND RECREATION - 15 -DEVELOPMENT- 15 -
2260.0000-Personnel Services 160,277 160,277 115,636
2260.0100-Contractual Services 3,000 3,000 120
2260.0700-Contingencies 2,000 2,000 -
Total 165,277 165,277 115,756
BUILDING STANDARDS -15-
2275.0000-Personnel Services 314,288 314,288 314,627
2275.0100-Contractual Services 5,300 5,300 1,296
2275.0300-Commodities and Materials 74,700 74,700 73,884
Total 394,288 394,288 389,807
COMMITTEE ON HOUSING AND REAL ESTATE -15-
2280.0000-Personnel Services 194,278 194,278 194,000
2280.0300-Commodities and Materials 8,000 8,000 7,970
Total 202,278 202,278 201,970
COMMITTEE ON HUMAN RELATIONS - 15 -
2286.0000-Personnel Services
2286.0300-Commodities and Materials
Total
COMMITTEE ON WORKFORCE DEVELOPMENT AND AUDIT -15-
2290.0000-Personnel Services
2290.0100-Contractual Services
2290.0300-Commodities and Materials
Total
CITY COUNCIL LEGISLATIVE REFERENCE BUREAU - 15-
2295.0000~PsrsonnG! Sgrvicgs
2295.0300-Commodities and Materials
90,741 1,000
91,741
493,691 30,000 5,000
528,691
357,543 4,000
90,741 1,000
91,741
493,691 25,000 10,000
528,691
346,543 15,000
69,326 386 69,712
485,156 2,501 9,677
497,334
313,071 14,532
114
Schedule A-2 Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
Original Final
Budget Budget Actual
GENERAL GOVERNMENT - Continued
CITY COUNCIL COMMITTEES - Concluded
CITY COUNCIL LEGISLATIVE REFERENCE
BUREAU-15-Concluded
Total $ 361,543 $ 361,543 $ 327,603
TOTAL CITY COUNCIL COMMITTEES .. 26,475,419 26,121,419 25,159,042
CITY CLERK - 25 -
2005.0000-Personnel Services 2,511,914 2,511,914 2,413,126
2005.0100-Contractual Services 555,913 555,913 383,298
2005.0300-Commodities and Materials 56,290 56,290 26,269
Total 3,124,117 3,124,117 2,822,693
DEPARTMENT OF FINANCE - 27 -City Comptroller
2011.0000-Personnel Services 2,883,721 2,883,721 2,538,683
2011.0100-Contractual Services 49,168 49,168 43,966
2011.0200-Travel 2,386 2,386 15
2011.0300-Commodities and Materials 17,920 17,920 4,570
Total 2,953,195 2,953,195 2,587,234
DEPARTMENT OF FINANCE - 27 -Accounting and Financial Reporting
2012.0000-Personnel Services 4,088,078 4,088,078 4,119,057
2012.0100-Contractual Services 739,582 739,582 573,705
2012.0200-Travel 3,000 3,000 2,659
2012.0300-Commodities and Materials 15,000 15,000 11,303
Total 4,845,660 4,845,660 4,706,724
DEPARTMENT OF FINANCE - 27 -Financial Strategy and Operations
2015.0000-Personnel Services 6,102,124 6,102,124 5,723,633
2015.0100-Contractual Services 779,243 779,243 454,770
2015.0200-Travel 4,200 4,200 2,740
2015.0300-Commodities and Materials 84,800 84,800 46,916
2015.0400-Equipment 90,000 90,000 90,000
Total 7,060,367 7,060,367 6,318,059
DEPARTMENT OF FINANCE -Revenue Services and Operations - 27 -
2020.0000-Personnel Services 23,669,206 23,669,206 20,762,832
2020.0100-Contractual Services 28,417,814 28,417,814 26,759,895
2020.0200-Travel 10,000 10,000 623
115
Schedule A-2 Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES Year Ended December 31, 2016
Original Budget
Final Budget
GENERAL GOVERNMENT - Continued
-DEPARTMENT-OB-FINANGE-—-
Revenue Services and Operations - 27 - Concluded
2020.0300-Commodities and Materials $
2020.0400-Machinery and Equipment
Total ~~
191,659 150,000
52,438,679
191,659 150,000
52,438,679
TOTAL FINANCE
CITY TREASURER - 28 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities and Materials
Total
849,693 800,158 500 6,500
1,656,851
849,693 800,158 500 6,500
1,656,851
756,431 604,704
3,779
1,364,914
DEPARTMENT OF ADMINISTRATIVE HEARINGS - 30 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities and Materials
Total
3,084,954 5,071,577 2,000 29,605
8,188,136
3,084,954 5,071,577 2,000 29,605
8,188,136
2,988,330. 4,827,890 673 23,929
7,840,822
DEPARTMENT OF LAW - 31 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities and Materials
Total
25,197,284 2,715,933 92,883 126,291 28,132,391
25,197,284 2,715,933 92,883 126,291 28,132,391
23,761,874 2,617,927 45,956 118,463
26,544,220
DEPARTMENT OF HUMAN RESOURCES - 33
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities and Materials
2005.0900-Purposes as Specified
total'".!.."..."
5,298,565 449,187 2,754 28,268 210,000
5,988,774
5,298,565 449,187 2,754 28,268 210,000
5,988,774
4,794,992 403,908 1,960 14,290 7,001
5,222,151
DEPARTMENT OF PROCUREMENT SERVICES
2005.0000-Personnel Services
2005.0100-Contractual Services
5,542,782 688,821
5,542,782 688,821
5,353,327 351,278
116
Schedule A-2 Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
Original Final
Budget Budget Actual
GENERAL GOVERNMENT - Continued
DEPARTMENT OF PROCUREMENT SERVICES -35- Concluded
2005.0200-Travel $ 11,490 $ 11,490 $ 3,043
2005.0300-Commodities and Materials 21,635 21,635 15,800
Total 6,264,728 6,264,728 5,723,448
DEPARTMENT OF FLEET AND FACILITIES MANAGEMENT - 38 -
BUREAU OF FINANCE AND ADMINISTRATION - 38 -
2103.0000-Personnel Services
2103.0100-Contractual Services
2103.0300-Commodities and Materials
Total
2,896,107 2,896,107 2,773,313
674,035 674,035 556,861
46,000 46,000 34,993
3,616,142 3,616,142 3,365,167
BUREAU OF FACILITY MANAGEMENT - 38 -
2126.0000-Personnel Services
2126.0100-Contractual Services
2126.0200-Travel
2126.0300-Commodities and Materials
Total
BUREAU OF ASSET MANAGEMENT - 38 -
2131.0000-Personnel Services
2131.0100-Contractual Services
2131.0200-Travel
2131.0300-Commodities and Materials
2131.9000-Purposes as Specified-Physcial Exams 2131.9100-Purposes as Specified- For Expenses
Related to Services Provided by PBC
Total
31,226,613 25,587,520 27,000 2,453,315 59,294,448
3,633,084 14,213,691 495 54,972,795 18,150
72,800 72,911,015
31,226,613 25,587,520 27,000 2,453,315 59,294,448
3,633,084 14,213,691 495 50,409,991 18,150
72,800 68,348,211
28,388,976 24,847,145 4,472 2,429,484 55,670,077
3,357,759 14,009,222
45,095,762 17,390
53,256 62,533,389
BUREAU OF FLEET OPERATIONS - 38 -
2140.0000-Personnel Services 32,094,398 36,009,899 33,941,103
2140.0100-Contractual Services 12,707,094 17,248,916 16,755,925
2140.0200-Travel 10,000 10,000 6,128
2140.0300-Commodities and Materials 12,576,624 12,576,624 12,286,662
Total 57,388,116 65,845,439 62,989,818
TOTAL DEPARTMENT OF FLEET AND
FACILITIES MANAGEMENT 193,209,721 197,104,240 184,558,451
117
Schedule A-2 Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
Original Budget
Final Budget
GENERAL GOVERNMENT - Continued
BOARD OF ELECTION COMMISSIONERS - -™ ELECTION AND ADMINISTRATION DIVISION - 39 -
2005.0000-Personnel Services $ 8,670,853
2005.0100-Contractual Services 5,747,875
2005.0200-Travel 13,536
2005.0300-Commodities and Materials 331,285
Total 14,763,549
COMMISSION ON HUMAN RELATIONS - 45 -
2005.0000-Personnel Services 1,081,149
2005.0100-Contractual Services 70,637
2005.0200-Travel 1,341
2005.0300-Commodities and Materials 2,750
Total 1,155\87T
MAYOR'S OFFICE FOR PEOPLE WITH DISABILITIES -48-
2005.0000-Personnel Services 1,049,578
2005.0100-Contractual Services 357,283
2005.0200-Travel 11,163
2005.0300-Commodities and Materials 8,586
2005.9400-lnternal Transfers and Reimbursements 23,259
Total 1,449,869
4,396,441 1,114,883 2,800 28,040 15,075,000 2,000,000 1,540,979 15,451,803 15,822,801 900,000 1,050,000 6,564,876 66,531
DEPARTMENT OF FAMILY AND SUPPORT SERVICES ADMINISTRATION - 50 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities and Materials
Early Childhood Education Program
Violence Reduction Program
Homeless Services for Youth
Summer Program
After School Program
2005,9261 -Children Advocacy Center
Earn Income Tax Credit
Homeless Services
2005.9400-lnternal Transfers and Reimbursements
Total ~~ 64,014,154
8,670,853 5,747,875 13,536 331,285
14,763,549
1,081,149 70,637 1,341 2,750
1,155,877
1,049,578 357,283 11,163 8,586 23,259
1,449,869
4,396,441 1,114,883 2,800 28,040 15,075,000 2,000,000 1,540,979 15,451,803 15,822,801 . 900,000 1,050,000 6,564,876 66,531
64,014,154
8,780,147 5,746,401 13,444 331,153
14,871,145
975,725 54,602 250 2,331
1,032,908
1,042,758 328,186 8,637 5,226 23,259
1,408,066
3,902,302 820,342 532 11,440 14,601,738 1,994,499 1,540,979 15,250,686 15,821,677 900,000 1,032,995 6,556,177 66,531
62,499,898
118
Schedule A-2 Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2016
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 and Materials
2005.0400-Equipment
2005.9110-Property Management,
Maintenance and Security
2005.9183-Foreclosure Prevention Program
Single-Family Troubled Building Initiative ...
Multi-Family Troubled Building Initiative
2005.9224-Micro Market Recovery Program
Total
$ 9,676,450 $ 9,676,450 $ 9,267,626
3,192,146 3,192,146 2,883,643
3,340 3,340 2,621
21,123 21,123 5,579
10,000 10,000 7,328
80,000 80,000 54,388
180,000 180,000 180,000
150,000 150,000 150,000
300,000 300,000 300,000
522,700 522,700 522,700
14,135,759 14,135,759 13,373,885
POLICE BOARD - 55 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities and Materials
Total
273,577 273,577 225,776
121,824 121,824 80,077
450 450 290
990 990 152
396,841 396,841 306,295
LICENSE APPEAL COMMISSION - 77 -
2005.0000-Personnel Services 74,045 74,045 78,427
2005.0100-Contractual Services 102,095 102,095 75,993
2005.0300-Commodities and Materials 500 500 346
Total 176,640 176,640 154,766
BOARD OF ETHICS - 78 -
2005.0000-Personnel Services 782,762 782,762 764,666
2005.0100-Contractual Services 66,730 66,730 25,776
2005.0200-Travel 5,125 5,125 3,220
2005.0300-Commodities and Materials 3,210 3,210 2,173
Total 857,827 857,827 795,835
DEPARTMENT OF FINANCE GENERAL - 99 -
2005.0000-Personnel Services 407,070,989 407,070,989 397,437,328
2005.0100-Contractual Services 68,519,284 68,519,284 63,490,424
2005.0300-Commodities and Materials 578,800 578,800 466,441
119
Schedule A-2 Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2016
Original Final
Budget Budget Actual
GENERAL GOVERNMENT - Concluded
DEPARTMENTS FINANCE GENERAL- 99 ^Concluded- - — - — - ,.„_.-„-,,.,
2005.0912-For Payment of Bonds $ 5,478,572 $ 5,478,572 $ 5,478,570
2005.0931-For Payment of Non-Tort Judgements 11,326,800 11,326,800 17,741,409
2005.0934-For Claims for Damages and Liabilities Against
the City when Ordered Paid by the City Council 200,000 200,000 84,010
2005.0991-To Provide Matching and Supplementary Grant
Funds Currently in Effect as well as New Grants 5,607,900 5,607,900 4,876,384
2005.9027-For the City Contribution to
Social Security Tax 877,917 877,917 359,964
2005.9076-City's Contribution to Medicare Tax 34,382,917 34,382,917 34,091,800
2005.9121-Lobbyist on Behalf of the City of Chicago .. 480,000 480,000 310,807
2005.9176-West Nile Virus Program 425,000 425,000 247,765
2005.9180-For World Business Chicago Program 1,200,000 1,200,000 970,000
2005.9257-Community Policing 1,500,000 1,500,000 1,466,543
2005.9286-Burge Reparations 5,500,000 5,500,000 5,467,500
2005.9377 For Transfer to Debt Serivce 67,324,235 67,324,235 67,324,235
To Reimburse Midway Fund for Fire
Department Salaries 2,852,109 2,852,109 2,852,109
To Reimburse Midway Fund for Fire
Department Benefits 1,467,410 1,467,410 1,467,410
2005.9638-For Corporate Subsidy of Chicago Public
Library 18,264,000 18,264,000 18,264,000
1 2005.9980 Municipal Fund Pension Allocation 106,161,273 106,161,273 11,586,926
2005.9981 Laborers Fund Pension Allocation 7,799,098 7,799,098
Total 747,016,304 747,016,304 633,983,625
TOTAL GENERAL GOVERNMENT 1,213,784,852 1,217,679,371 1,076,837,263
HEALTH
DEPARTMENT OF PUBLIC HEALTH - 41 -
1005.0000-Personnel Services 15,426,504 15,426,504 15,117,503
1005.0100-Contractual Services 14,383,935 14,383,935 13,603,902
1005.0200-Travel 19,150 19,150 27,263
1005.0300-Commodities and Materials 588,918 588,918 164,293
1005.0445-Eq.ujpment., 7,920 7,920
Total 30,426,427 30,426,427 28,912,961
TOTAL HEALTH 30,426,427 30,426,427 28,912,961
120
Schedule A-2 Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2016
Original Final
Budget Budget Actual
PUBLIC SAFETY
INDEPENDENT POLICE REVIEW AUTHORITY - 56 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities and Materials
Total
$ 8,217,168 $ 8,217,168 $ 7,266,428
206,065 206,065 172,593
2,790 2,790 1,971
34,460 34,460 29,388
8,460,483 8,460,483 7,470,380
1,329,544,272 11,053,618 307,070 3,564,998 36,250
1,345,966,039 10,768,774 187,737 3,074,775 36,250
DEPARTMENT OF POLICE - 57 -
1005.0000-Personnel Services 1,329,544,272
1005.0100-Contractual Services 11,053,618
1005.0200-Travel 307,070
1005.0300-Commodities and Materials 3,564,998
1005.0400-Equipment 36,250
1005.0931-For the Payment of Tort and Non-Tort
Judgements, Outside Counsel Expenses
19,844,350
81,287,651
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 19,000,000 19,493,136
1005.9067-For Physical Exams 1,159,748 1,159,748 875,193
Total 1,384,510,306 1,384,510,306 1,461,689,555
OFFICE OF EMERGENCY MANAGEMENT AND COMMUNICATIONS - 58 -
2705.0000-Personnel Services
2705.0100-Contractual Services
2705.0200-Travel
2705.0300-Commodities and Materials
2705.0401-Tools Less Than or Equal to $100/Unit
2705.0423-Communication Devices
Total
77,649,780 15,301,862 87,090 1,344,190 39,000 25,102 94,447,024
77,649,780 15,301,862 87,090 1,344,190 39,000 25,102 94,447,024
77,903,564 15,177,079 103,912 1,258,394 47,917 25,079 94,515,945
FIRE DEPARTMENT - 59 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities and Materials
2005.0400-Equipment
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
554,359,070 6,419,047 50,900 2,780,407 119,000
2,702,000
554,359,070 6,419,047 50,900 2,780,407 119,000
2,702,000
558,555,350 4,945,841 28,671 2,507,432 111,635
9,643,472
121
Schedule A-2 Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
Original Final
Budget Budget Actual
PUBLIC SAFETY - Concluded
FIRE-DEPARTMENT - 59 - Concluded™--— .-, -
2005.0937-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 $ 9,000,000 $ 6,481,501
2005.9067-For Physical Exams 1,080,000 1,080,000 434,779
Total 576,510,424 576,510,424 582,708,681
DEPARTMENT OF BUILDINGS - 67 -
2005.0000-Personnel Services 18,659,113 18,659,113 17,898,491
2005.0100-Contractual Services 4,274,828 4,274,828 4,185,879
2005.0200-Travel 155,000 155,000 121,075
2005.0300-Commodities and Materials 41,620 41,620 24,115
2005.0931-For the Payment of Tort and Non-Tort
Judgements, Outside Counsel Expenses
and Expert Costs, as Approved by the
Corporation Counsel 300,000 300,000 49,397
2005.0989-For Refunds for Cancelled Voucher Warrants and Payroll Checks and for Refunding Duplicate
Payments and Payments Made in Error 100,000 100,000 99,304
2005.9019-For Board Up and Demolition
of Abandoned Buildings 3,000,000 3,000,000 1,377,378
Total 26,530,561 26,530,561 23,755,639
DEPARTMENT OF BUSINESS AFFAIRS AND CONSUMER PROTECTION - 70 -
2005.0000-Personnel Services 13,441,388 13,441,388 11,891,725
2005.0100-Contractual Services 4,554,828 4,554,828 4,181,878
2005.0200-Travel 37,343 37,343 9,192
2005.0300-Commodities and Materials 140,234 140,234 91,434
Total 18,173,793 18,173,793 16,174,229
COMMISSION ON ANIMAL CARE AND CONTROL - 73 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities and Materials
Total
4,524,411 4,524,411 4,415,157
733,337 733,337 680,454
480 480 209
- 445,079445,079 418,364
5,703,307 5,703,307 5,514,184
TOTAL PUBLIC SAFETY 2,114,335,898 2,114,335,898 2,191,828,613
122
Schedule A-2 Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
Original Budget
Final Budget
STREETS AND SANITATION
COMMISSIONER'S OFFICE - 81 -
2005.0000-Personnel Services $
2005.0100-Contractual Services
2005.0200-Travel
2005.0300-Commodities and Materials
2005.0931-For the Payment of Tort and Non-Tort
Judgements, Outside Counsel Expenses
and Expert Costs, as Approved by the
Corporation Counsel and Budget'Director
Total _
COMMISSIONER'S OFFICE -ADMINISTRATIVE SERVICES DIVISION - 81 -
2006.0000-Personnel Services
2006.0100-Contractual Services
2006.0200-Travel
2006.0300-Commodities and Materials
Total _
BUREAU OF SANITATION - 81 -
2020.0000-Personnel Services
2020.0100-Contractual Services
2020.0300-Commodities and Materials
2020.0400-Equipment _
Total _
BUREAU OF STREET OPERATIONS - 81 -
2045.0000-Personnel Services
2045.0100-Contractual Services
2045.0300-Commodities and Materials
Total _
BUREAU OF FORESTRY - 81 -
2060.0000-Personnel Services
2060.0100-Contractual Services
2060.0200-Travel
2060.0300-Commodities and Materials
2060.0400-Equipment
Total _
TOTAL STREETS AND SANITATION
1,305,809 $ 215,375 200 6,150
540,000
2,067,534
4,476,526 31,850 250 5,250
4,513,876
103,506,665 50,963,420 188,434 27,332 154,685,851
19,675,354 2,377,420 440,125 22,492,899
15,570,209 1,723,963 5,200 95,645 11,575 17,406,592
201,166,752
1,305,809 $ 215,375 200 6,150
540,000
2,067,534
4,476,526 31,850 250 5,250
4,513,876
103,506,665 50,963,420 188,434 27,332 154,685,851
19,675,354 2,377,420 440,125 22,492,899
15,570,209 1,723,963 5,200 95,645 11,575 17,406,592
201,166,752
1,227,382 209,801
5,909
280,780
1,723,872
1,811,655 28,883
3,676
1,844,214
98,112,972 52,754,330 181,916 27,332
151,076,550
20,230,622 2,377,005 429,631
23,037,258
15,838,114 1,715,535 5,128 89,607 11,534
17,659,918
195,341,812
123
Schedule A-2 Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES Year Ended December 31, 2016
Original Budget
Final Budget
TRANSPORTATION
OFFICE OF THE COMMISSIONER - 84- —
2105.0000-Personne! Services $
2105.0100-Contractual Services
2105.0200-Travel
2105.0300-Commodities and Materials
2105.0931-For the Payment of Tort and Non-Tort
Judgements, Outside Counsel Expenses
and Expert Costs, as Approved by the
Corporation Counsel
Total _
DIVISION OF ADMINISTRATION - 84 -
2115.0000-Personnel Services
2115.0100-Contractual Services
2115.0200-Travel
2115.0300-Commodities and Materials
Total _
DIVISION OF TRAFFIC SAFETY - 84 -
2130.0000-Personnel Services
2130.0100-Contractual Services
2130.0200-Travel
2130.0300-Commodities and Materials
Total _
DIVISION OF SIGN MANAGEMENT- 84 -
2140.0000-Personnel Services
2140.0100-Contractual Services
2140.0300-Commodities and Materials
2140.0400-Equipment
Total _
DIVISION OF PROJECT DEVELOPMENT - 84 -
2145.0000-Personnel Services
2145.0100-Contractual Services
2145.0200-Travel
. 2145.0300TCommodities and-Materials
2145.9042-Ex-Offender/Re-Entry Initiatives
Total _
DIVISION OF ELECTRICAL OPERATIONS - 84 -
2150.0000-Personnel Services
2150.0100-Contractual Services
2,367,129 158,935 3,000 7,100
1,890,000
4,426,164
5,149,025 241,423 1,300 11,600
5,403,348
829,983 15,169,716 3,629 4,100
16,007,428
50
3,210,423 451,7.02
O.SOO
7,800
4,178,908
3,222,936 779,215 5,500
- 19,200 250,000
4,276,851
8,069,569 536,971
',367,129 158,935 3,000 7,100
1,890,000
4,426,164
5,149,025 241,423 1,300 11,600
5,403,348
829,983 15,169,716 3,629 4,100 16,007,428
3,210,423 451,702 ouo,9oo 7,800
4,178,908
3,222,936 779,215 5,500 19,200 250,000
4,276,851
4,175,050 536,971
2,261,022 147,211 505 6,519
1,429,061
3,844,318
4,694,362 222,218 265 10,247
4,927,092
782,143 14,240,868 2,424 2,638
15,028,073
2,814,422 424,650 477,759 3,172
3,720,003
3,048,340 736,388 5,920 14,076 250,000
4,054,724
7,234,676 515,962
124
Schedule A-2 - Concluded CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
Year Ended December 31, 2016
Original Final
Budget Budget Actual
TRANSPORTATION - Concluded
DIVISION OF ELECTRICAL OPERATIONS - 84 - Concluded
2150.0200-Travel $ 23,000 $ 23,000 $ 6,723
2150.0300-Commodities and Materials 488,605 488,605 482,367
2150.0400-Equipment 21,000 21,000 346
2150.0400-Equipment
Total 9,139,145 5,244,626 8,240,074
DIVISION OF IN-HOUSE CONSTRUCTION - 84 -
2155.0000-Personnel Services 12,436,277 12,436,277 11,335,443
2155.0100-Contractual Services 269,507 269,507 211,554
2155.0200-Travel 1,600 1,600
2155.0300-Commodities and Materials 305,161 305,161 214,585
2155.0400-Equipment 15,325 15,325 13,181
Total 13,027,870 13,027,870 11,774,763
TOTAL TRANSPORTATION 56,459,714 52,565,195 51,589,047
PRINCIPAL RETIREMENT
2005.9540 - Payment of General Obligation
Certificate 11,135,000 11,135,000 11,135,000
TOTAL PRINCIPAL RETIREMENT 11,135,000 11,135,000 11,135,000
INTEREST AND OTHER FISCAL CHARGES
2005.9540-lnterest on General Obligation Certificate ... 6,146,357 6,146,357 4,948,059
TOTAL INTEREST AND OTHER
FISCAL CHARGES 6,146,357 6,146,357 4,948,059
TOTAL GENERAL FUND $ 3,633,455,000 $ 3,633,455,000 $ 3,560,592,755
125
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126|1010|
NONMAJOR GOVERNMENTAL FUNDS
127
Schedule B-1
CITY OF CHICAGO, ILLINOIS NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET December 31, 2016
(Amounts are in Thousands of Dollars)
Total Debt Total
Nonmajor Service Nonmajor Total
Special Fund Capital Nonmajor
Revenue Special Project Governmental
.....„r::,;,.,.,,„;,.,-„:,-;,.;, ,:-.;.---.-,.--,„----;-.,.v-._-:T- _^Funds —.-Taxing,Areas.. Funds :,Funds ., ...
ASSETS
Cash and Cash Equivalents $ 25,289 $ - $|99|$ 25,296
Investments 33,619 41,903 32,658 108,180
Cash and Investments with Escrow Agent 115 83,472 - 83,587
Receivables (Net of Allowances):
Property Tax - 20,232 - 20,232
Accounts 15,198 161 687 16,046
Due from Other Funds 91,712 - - 91,712
Due from Other Governments 20,073 - 18,040 38,113
Total Assets $ 186,006 $ 145,768 $ 51,392 $ 383,166
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities:
Voucher Warrants Payable
Accrued Interest
Due to Other Funds
Accrued and Other Liabilities
Total Liabilities
$ 41,662 $ - ' $ 22,678 $ 64,340
1,058 - 1,058
58,967 35,336 42,344 136,647
12,792 109 241 13,142
113,421 36,503 65,263 215,187
Deferred Inflows - 15,122 - 15,122
Fund Balance:
Restricted 3,057 94,143 24,988 122,188
Committed 69,528 - - 69,528
Unassigned - - (38,859) (38,859)
Total Fund Balance 72,585 94,143 (13,871) 152,857
Total Liabilities, Deferred Inflows and Fund Balance ... $ 186,006 $ 145,768 $ 51,392 $ 383,166
128
Schedule B-2
CITY OF CHICAGO, ILLINOIS NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2016 (Amounts are in Thousands of Dollars)
Total Nonmajor Special Revenue
Funds
REVENUES
Utility Tax $ 101,260
Transportation Tax 191,665
Transaction Tax 79,289
Special Area Tax
Other Taxes 26,088
Internal Service 34,289
Fines 19,381
Investment Income (1,692)
Charges for Services 29,293
Miscellaneous 20,674
Total Revenues 500,247
342,195 81 7,444 52,704 88,844 83,733 606
EXPENDITURES Current:
General Government
Health
Public Safety
Streets and Sanitation
Transportation
Cultural and Recreational
Other
Capital Outlay
5,000 2,103
Debt Service:
Principal Retirement
Interest and Other Fiscal Charges
Total Expenditures 582,710
Revenues Over (Under) Expenditures (82,463)
Debt Service
Fund Special Taxing Areas
22,104
(902) 924
22,126
58,090 18,561
76,651
(54,525)
Total Nonmajor Capital Project Funds
1,245 1,012
2,257
68,898
68,898
(66,641)
Total Nonmajor Governmental Funds
101,260 191,665 79,289 22,104 26,088 34,289 19,381 (1,349) 29,293 22,610
524,630
342,195 81 7,444 52,704 88,844 83,733 606 68,898
63,090 20,664 728,259
(203,629)
Continued on following page.
Schedule B-2 - Concluded CITY OF CHICAGO, ILLINOIS NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2016 (Amounts are in Thousands of Dollars)
Total Nonmajor Special Revenue
Funds
Debt Service
Fund Special Taxing Areas
Total Nonmajor Capital Project
Total Nonmajor Governmental Funds
OTHER FINANCING SOURCES (USES)
Transfers In $ 97,731 $ 73,047 $ - $ 170,778
Transfers Out (2,279) (17,693) (1,500) (21,472)
Total Other Financing Sources (Uses) 95,452 55,354 (1,500) 149,306
Net Change in Fund.Balances 12,989 829 (68,141) (54,323)
Fund Balance - Beginning of Year 59,596 93,314 54,270 207,180
Fund Balance - End of Year $ 72,585 $ 94,143 $ (13,871) $ 152,857
130
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.
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 surcharges 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.
131
Schedule C-1
CITY OF CHICAGO, ILLINOIS NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 2016
(Amounts are in Thousands of Dollars)
Motor
Fuel Tax Public
Vehicle and Building
. t-v:*. ¦. Tax . Project ¦ . Commission^
ASSETS
Cash and Cash Equivalents $ - $ 12,481 $
Investments 18,368
Cash and Investments with Escrow Agent - 115
Receivables (Net of Allowances):
Accounts 1,033 1,662
Due from Other Funds 50,664 31
Due from Other Governments - 10,625 3,119
Total Assets $ 70,065 $ 24,914 $ 3,119
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities:
Voucher Warrants Payable $ 10,004 $ 7,903 $
Due to Other Funds 22,547 16 30
Accrued and Other Liabilities 7,902 534 -
Total Liabilities 40,453 8,453 30
Fund Balance (Deficit):
Restricted
Committed 29,612 16,461 3,089
Total Fund Balance (Deficit) 29,612 16,461 3,089
Total Liabilities and Fund Balance $ 70,065 $ 24,914 $ 3,119
132
Chicago Public
Miscellaneous Library
Special Events, Tourism
and Festivals
Health
and Welfare
Total Nonmajor
Special Revenue
Funds
5,679 $ 10,152
399 1,674
25,289 33,619 115
10,523 25,280
1,232 13,635
440 2,102 6,329
308
15,198 91,712 20,073
$ 51,634 $ 21,597 $ 12,296 $ 2,381 $ 186,006
13,231 30,721 37
43,989
6,876 1,334 3,972
12,182
3,648 4,319 347
8,314
41,662 58,967 12,792
113,421
3,057 4,588
7,645
3,057 69,528
72,585
$ 51,634 $ 21,597 $ 12,296 $ 2,381 $ 186,006
133
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, 2016 (Amounts are in Thousands of Dollars)
Revenues: - ••• - -1=^™--™ .
Utility Tax $
Transportation Tax
Transaction Tax
Other Taxes
Internal Service
Fines .-
Investment Income
Charges for Services
Miscellaneous
Total Revenues
Expenditures: Current:
General Government
Health
Public Safety
Streets and Sanitation
Transportation
Cultural and Recreational
Other
Debt Service:
Principal Retirement
. Interest and Other Fiscal Charges
Total Expenditures
Revenues Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balance (Deficit) - Beginning of Year
Fund Balance (Deficit) - End of Year $
Public Building Commission
132,490
$
34,313 17,991
(40) 16,156
290
57,856
(24)
15
593
593
429 58,276
1,107
201,200
18,515
72,532
14,750 12,455
45,720
1,107
366 37,827 76,341
12,556
(514)
187,066
14,134
(55)
709
742 (33)
14,843 14,769
(514) 3,603
(55)
12,501 3,960
29,612 $ 16,461 $ 3,089
134
Special Total
Events, Nonmajor
Chicago Tourism Health Special
Public and and Revenue
Miscellaneous Library Festivals Welfare Funds
$ 101,260 $ - $ - $ - $ 101,260
1,319 - 191,665
79,289 - - - 79,289
26,088 - 26,088
34,289
1,390 - - 19,381
(1,636) 2 (64) 31 (1,692)
68 1,175 11,894 - 29,293
12,691 165_ 6,506 -_ 20,674
191,672 2,732 45,743 31 500,247
195,303 40,869 11,649 2,220 342,195
81 81
6,879 - 199 - 7,444
127 - - - 52,704
48 88,844
54,862 28,871 - 83,733
606 - 606
i
5,000 - 5,000
- 2,103 2,103
202,438 97,834 46,325 2,220 582,710
(10,766) (95,102) (582) (2,189) (82,463)
80 96,909 - - 97,731
-_ -__ (2,191) (2,279)
80 96,909 (2,191) - 95,452
(10,686) 1,807 (2,773) (2,189) 12,989
18,331 7,608 6,755 4,570 59,596
$ 7,645 $ 9,415 $ 3,982 $ 2,381 $ 72,585
135
Schedule C-3
CITY OF CHICAGO, ILLINOIS NONMAJOR SPECIAL REVENUE FUNDS
COMBINING SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016 (Amounts are in Thousands of Dollars)
Transaction and
.r,i............. ,.~r-- :=t-.-;^ --.-.-v. —— —¦= Property
Tax
FUND
Final Budgeted Revenues:
Vehicle Tax $
Motor Fuel Tax and Project
Miscellaneous 63,280
Chicago Public Library
Special Events, Tourism and Festivals
Health and Welfare -
Total Final Budgeted Revenues 63,280
Actual Revenues:
Vehicle Tax
Motor Fuel Tax and Project
Public Building Commission
Miscellaneous 79,289
Chicago Public Library
Special Events, Tourism and Festivals
Health and Welfare -
Total Actual Revenues 79,289
Variance Positive (Negative) $ 16,009
Transportation; Tax
State Taxes
Special Area and Utility Taxes
$ 121,200 $ 10,000 56,684
96,077
34,650
96,077
24,650
177,884
101,260
26,088
132,490 57,856
26,088
101,260
1,319
191,665
$ 5,183 $ 13,781 $ (8,562)
136
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
$ 16,509 $ 2,400 $
165 12,274
24,215 1,600 6,500
$ 5,142 $
428 22,464 8,270 74
196,548 56,684 184,000 102,904 51,694 74
32,297 10,520
34,313 17,991 (40) 16,156 290 - 742 201,942
(24) - 15 - 429 - - 58,276
593 - - 593
(1,636) 68 12,691 - 80 191,752
1,390 2 1,175 165 - 96,909 99,641
(64) 11,894 6,506 - - 45,743
31 31
34,289 19,381 (1,692) 29,293 20,674 - 97,731 597,978
$ 1,992 $ 8,861 $ (1,702) $ 345 $ (14,041) $ (77,145) $ 61,353 $ 6,074
137
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, 2016 (Amounts are in Thousands of Dollars)
Streets
General Public and
Government - Health •- Safety Sanitation-
FUND
Final Budget:
Vehicle Tax $ 77,725 $ - $ $ 37,902
Motor Fuel Tax and Project 18,050 - - 17,161
Miscellaneous 180,728 - 3,272
Library 46,895
Special Events, Tourism and Festivals 21,590 - 199
Health and Welfare 74
Total Original and Final Budget 345,062 - 3,471 55,063
Actual Expenditures and Encumbrances:
Vehicle Tax 73,109 - - 37,918
Motor Fuel Tax and Project 15,864 - - 14,908
Miscellaneous 194,115 - 2,417
Library 42,608
Special Events, Tourism and Festivals 19,448 - 199
Health and Welfare ...
Total Actual Expenditures and Encumbrances ... 345,144 -_ 2,616 52,826
Variance Positive (Negative) $ (82) $ - $ 855 $ 2,237
138
Total
Interest Nonmajor
Cultural Operating and Other Special
Trans- and Employee Transfers Fiscal Revenue
portation Recreational Pensions , Out Charges Funds
$ 80,920 $ - $ $ $ - $ 196,547
21,473 .. 56,684
184,000
56,009 - - 102,904
29,905 - - - 51,694
-_ 74
102,393 85,914 - - - 591,903
77,094 .. 188,121
15,046 .. 45,818
196,532
54,943 - - - 97,551
29,049 - - - 48,696
92,140 83,992 - - - 576,718
$ 10,253 $ 1,922 $ - $ - $ - $ 15,185
139
This Page Intentionally Left Blank
140
Schedule C-5
CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
Original Final Actual
Budget Budget
VEHICLE TAX FUND
GENERAL GOVERNMENT
CITY COUNCIL COMMITTEES -15 -
COMMITTEE ON TRANSPORTATION AND PUBLIC WAY
2230.0000-Personnel Services $ 429,167 S 414,167 $ 478,697
2230.9000-Purposes as Specified 16,387 31,387 30,288
Total 445,554 445,554 508,985
COMMITTEE ON PEDESTRIAN AND TRAFFIC SAFETY
2265.0000-Personnel Services 239,587 239,587 244,468
2265.0300-Commodities and Materials 5,000 5,000 4,955
Total 244,587 244,587 249,423
TOTAL CITY COUNCIL COMMITTEES 690,141 690,141 758,408
CITY CLERK - 25 -
2005.0000-Personnel Services 4,185,817 4,185,817 3,787,973
2005.0100-Contractual Services 2,267,433 2,267,433 1,830,382
2005.0200-Travel 23,940 23,940 8,070
2005.0300-Commodities and Materials 416,045 416,045 337,039
2005.9400-lnternal Transfers and Reimbursements 30,000 30,000 26,305
Total 6,923,235 6,923,235 5,989,769
DEPARTMENT OF FINANCE - 27 -FINANCIAL STRATEGY AND OPERATIONS
2015.0000-Personnel Services 503,860 503,860 438,792
Total 503,860 503,860 438,792
REVENUE SERVICES AND OPERATIONS
2020.0000-Personnel Services 463,799 463,799 469,740
2020.0100-Contractual Services 4,500 4,500
2020.0300-Commodities and Materials 500 500
2020.0400-Equipment 600,000 600,000 593,494
Total 1,068,799 1,068,799 1,063,234
TOTAL DEPARTMENT OF FINANCE 1,572,659 1,572,659 ' 1,502,026
DEPARTMENT OF LAW-31 -
2005.0000-Personnel Services 1,182,322 1,182,322 1,159,548
2005.0100-Contractual Services 86,188 86,188 79,682
2005.0200-Travel 3,610 3,610 940
2005.0300-Commodities and Materials 5,280 5,280 4,960
141
Schedule C-5 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
Original Budget
Final Budget
VEHICLE TAX FUND - Continued
GENERAL GOVERNMENT; . Concluded -
DEPARTMENT OF LAW-31 -
2005.9400-lnternal Transfers and Reimbursements $
Total ~~
DEPARTMENT OF FLEET AND FACILITY MANAGEMENT ¦
2126.0100-Contractual Services
2126.0300-Commodities and Materials
2131.0100-Contractual Services
2131.0300-Commodities and Materials .'
2140.0100-Contractual Services
Total
845,577 26,000 1,685,610 10,249,434 56,000
12,862,621
845,577 26,000 1,685,610 10,249,434 56,000
12,862,621
767,191 24,339 1,671,043 8,646,350
11,108,923
DEPARTMENT OF BUILDINGS - 67 -
2005.0000-Personnel Services
2005.0100-Contractual Services
2005.0300-Commodities and Materials.
Total
468,007 34,500 3,008
505,515
468,007 34,500 3,008
505,515
360,879 32,390 2,077
395,346
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 Funds
Currently in Effect as well as New Grants
2005.9027-City's Contribution to Social Security Tax
2005.9076-City's Contribution to Medicare Tax
To Reimburse Corporate Fund for Pension Payments
To Reimburse the Corporate Fund for Indirect Costs
Chargeable to Fund
2005.9774- Transfer for Services provided by the Office of
Emergency Management and Communications
Total
26,179,284 7,115,485
3,500 1,375,000
765,000
707,700 20,186 926,090 15,229,638
1,538,000
33,000
53,892,883
26,179,284 7,115,485
3,500 1,375,000
765,000
707,700 20,186 926,090. 15,229,638
1,538,000
33,000
53,892,883
27,363,379 5,461,664
1,807 139,121
746,289
649,162 20,186 926,090 15,229,638
1,538,000
33,000
52,108,336
TOTAL GENERAL GOVERNMENT.
142
Schedule C-5 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
VEHICLE TAX FUND - Continued STREETS AND SANITATION
Original Budget
Final Budget
BUREAU OF SANITATION - 81 -
2020.0000-Personnel Services $ 5,357,842
2020.0100-Contractual Services 2,475,656
2020.0400-Equipment 500_
Total 7,833,998
BUREAU OF STREET OPERATIONS - 81 -
2045.0000-Personnel Services 4,136,213
2045.0100-Contractual Services 1,885,950
2045.0300-Commodities and Materials 241,219
2045.0400-Equipment 33,700
2045.9400-lnternal Transfers and Reimbursements 5,400
Total 6,302482"
BUREAU OF TRAFFIC SERVICES - 81 -
2070.0000-Personnel Services 13,816,613
2070.0100-Contractual Services 8,966,125
2070.0300-Commodities and Materials 150,150
2070.0992-For Tow Storage Refund 797,000
2070.9400-lnternal Transfers and Reimbursements 35,900
Total 23,765,788
TOTAL STREETS AND SANITATION 37,902,268
5,357,842 2,475,656 500
7,833,998
4,136,213 1,885,950 241,219 33,700 5,400
6,302,482
13,816,613 8,966,125 150,150 797,000 35,900
23,765,788
37,902,268
6,316,370 2,473,838 143
8,790,351
3,556,224 1,877,748 235,909 31,242 5,400
5,706,523
13,655,734 8,792,334 140,000 796,999 35,900
23,420,967
37,917,841
TRANSPORTATION
DIVISION OF ENGINEERING - 84 -
2125.0000-Personnel Services
2125.0100-Contractual Services
2125.0200-Travel
2125.0300-Commodities and Materials
Total
DIVISION OF INFRASTRUCTURE MANAGEMENT - 84 •
2135.0000-Personnel Services
2135.0100-Contractual Services
2135.0200-Travel
2135.0300-Commodities and Materials
2135.9400-lnternal Transfers and Reimbursements
Total
7,385,897 1,209,320 44,878 32,606
8,672,701
4,959,027 4,598,990 104,800 35,150 4,000
9,701,967
7,385,897 1,209,320 44,878 32,606
8,672,701
4,959,027 4,598,990 104,800 35,150 4,000
9,701,967
6,579,736 1,113,141 35,768 14,950
7,743,595
4,338,094 4,248,738 71,152 25,694 4,000
8,687,678
143
Schedule C-5 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
Original Final Actual
Budget Budget
VEHICLE TAX FUND - Concluded
TRANSPORTATION - Concluded
DIVISION OF ELECTRICAL OPERATIONS - 84 -
2150.0000-Personnel Services $ 17,245,514 $ 17,245,514 $ 16,608,724
2150.0100-Contractual Services 1,418,918 1,418,918 1,397,406
2150.0200-Travel 117,560 117,560 130,845
2150.0300-Commodities and Materials 896,975 896,975 892,089
2150.0400-Equipment 3,250 3,250 3,202
Total 19,682,217 19,682,217 19,032,266
DIVISON OF IN-HOUSE CONSTRUCTION - 84 -
2155.0000-Personnel Services 41,328,520 41,328,520 40,274,016
2155.0100-Contractual Services 630,621 630,621 534,278
2155.0200-Travel 18,500 18,500 24,750
2155.0300-Commodities and Materials 850,900 850,900 761,588
2155.9400-lnternal Tranters and Reimbursements 35,000 35,000 35,444
Total 42,863,541 42,863,541 41,630,076
TOTAL TRANSPORTATION 80,920,426 80,920,426 77,093,615
TOTAL VEHICLE TAX FUND 196,548,000 196,548,000 188,120,094
MOTOR FUEL TAX AND PROJECT FUND GENERAL GOVERNMENT
DEPARTMENT OF FLEET AND FACILITY MANAGEMENT - 38 -
2131.0300-Commodities and Materials 940,216 5,503,020 5,503,020
2140.0000-Personnel Services 3,915,501
2140.0100-Contractual Services 4,541,822 - 134,601
TOTAL FLEET AND FACILITY MANAGEMENT 9,397,539 5,503,020 5,637,621
DEPARTMENT OF FINANCE GENERAL - 99 -
2005.0100-Contractual Services 1,725,000 1,725,000 1,528,246
2005.9500-Reserved for Excess Expense Related to Snow Events 2,122,634 2,122,634
2005.9600-Reimbursements 8,698,511 8,698,511 8,698,511
TOTAL FINANCE GENERAL 12,546,145 12,546,145 10,226,757
TOTAL GENERAL GOVERNMENT
144
Schedule C-5 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
Actual
Final Budget
Original Budget
MOTOR FUEL TAX AND PROJECT FUND - Concluded
DEPARTMENT OF STREETS AND SANITATION - 81 -
2047.0000-Personnel Services $ 3,308,601 $ 3,308,601 $ 2,583,072
2047.0100-Contractual Services 467,588 467,588 427,614
2047.0300-Commodities and Materials 13,385,200 13,385,200 11,897,248
TOTAL STREETS AND SANITATION 17,161,389 17,161,389 14,907,934
3,000,000
3,000,000 690,542 3,894,519 2,026,911 6,360,682 825,000 4,675,334
3,000,000 8,849
2,012,513 4,881,328 825,000 4,318,475
DEPARTMENT OF TRANSPORTATION - 84 -
2005.9100-C.T.A./Regional Transportation Authority Agreement
2125.0300-Commodities and Materials
2,026,911 6,360,682 825,000 4,675,334
2150.0000-Personnel Services
2150.0300-Commodities and Materials
2155.0000-Personnel Services
2155.0100-Contractual Services
2155.0300-Commodities and Materials
TOTAL TRANSPORTATION 16,887,927 21,472,988 15,046,165
TOTAL MOTOR FUEL TAX AND PROJECT FUND 55,993,000 56,683,542 45,818,477
MISCELLANEOUS FUND
EMERGENCY COMMUNICATION
GENERAL GOVERNMENT
DEPARTMENT OF FINANCE GENERAL - 99 -
2005.0100-Contractual Services 100,000 100,000 23,410
2005.9639-For Oper. of the Emer Management and Comm 96,405,000 96,405,000 96,400,000
Total 96,505,000 96,505,000 96,423,410
TOTAL EMERGENCY COMMUNICATION 96,505,000 96,505,000 96,423,410
145
Schedule C-5 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
Original Final Actual
Budget Budget
MISCELLANEOUS FUND - Continued
SPECIAL DEPOSIT ACTIVITIES
CHICAGO PARKING METERS
GENERAL GOVERNMENT
DEPARTMENT OF FINANCE GENERAL - 99 -
2005.0100-Contractual Services $ 15,067,077 $ 15,067,077 $ 14,809,758
Total 15,067,077 15,067,077 14,809,758
TOTAL CHICAGO PARKING METERS 15,067,077 15,067,077 14,809,758
PUBLIC SAFETY
DEPARTMENT OF POLICE - 57 -
2005.9999-Miscellaneous 3,272,496 3,272,496 2,416,958
Total 3,272,496 3,272,496 2,416,958
TOTAL SPECIAL DEPOSIT ACTIVITIES 18,339,573 18,339,573 17,226,716
COMMONWEALTH EDISON SETTLEMENT GENERAL GOVERNMENT OFFICE OF THE MAYOR-01 -
2005.0000-Personnel Services 390,000 390,000 67,472
Total 390,000 390,000 67,472
DEPARTMENT OF STREETS & SANITATION - 81 -
2005.0100-Contractual Services 126,500 126,500 126,500
Total 126,500 126,500 126,500
DEPARTMENT OF TRANSPORTATION - 84 -
2150.0000-Personnel Services 25,000 25,000
2005.9999-Miscellaneous 50,000 50,000 50,000
Total 75,000 75,000 50,000
TOTAL COMMONWEALTH SETTLEMENT 591,500 591,500 243,972
146
Schedule C-5 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
MISCELLANEOUS FUND - Concluded ALLIED SETTLEMENT FUND
GENERAL GOVERNMENT
DEPARTMENT OF LAW-31 -
2005.9999-Miscellaneous $ 1,000,000 $ 1,000,000 $ 13,335
Total 1,000,000 1,000,000 13,335
754,533 1,939 5,084
1,391,000 7,500 10,000 75,000
1,391,000 7,500 10,000 75,000
DEPARTMENT OF PROCUREMENT SERVICES - 35 -
2005.0100-Contractual
2005.0200-Travel
2005.0300-Commodities and Materials
2005.0400-Equipment
Total 1,483,500 1,483,500 761,556
TOTAL ALLIED SETTLEMENT 2,483,500 2,483,500 774,891
CTA REAL PROPERTY TRANSFER TAX
DEPARTMENT OF FINANCE GENERAL - 99 -
2005.9205-For Distribution of the Net Proceeds of the Real Property
Transfer Tax-CTA Portion 62,647,000 62,647,000 79,063,378
2005.9640-To Reimburse Corporate Fund for Costs Incurred for
Collection of the Real Property Transfer Tax-CTA Portion 633,000 633,000 -_
Total 63,280,000 63,280,000 79,063,378
TOTAL CTA REAL PROPERTY TRANSFER TAX 63,280,000 63,280,000 79,063,378
LEGAL RESERVE FUND
DEPARTMENT OF FINANCE GENERAL - 99 -2005.0900-For Distribution of the Net Proceeds
of the Real Property 2,800,000 2,800,000 2,800,000
Total 2,800,000 2,800,000 2,800,000
TOTAL LEGAL RESERVE FUND 2,800,000 2,800,000 2,800,000
TOTAL MISCELLANEOUS FUND 183,999,573 183,999,573 196,532,367
147
Schedule C-5 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
Original Budget
Final Budget
LIBRARY FUND
GENERAL GOVERNMENT
DEPARTMENT OF INNOVATION AND TECHNOLOGY - 06 -
2005.0000-Personnel Services $ 1,157,867 $_
Total 1,157,867 _
DEPARTMENT OF FLEET AND FACILITY MANAGEMENT - 38 -
BUREAU OF FACILITY MANAGEMENT
2126.0000-Personnel Services 1,480,418
2126.0100-Contractual Services 6,681,901
2126.0300-Commodities and Materials 462,500 _
Total 8,624,819 _
BUREAU OF ASSET MANAGEMENT - 38 -
2131.0100-Contractual Services 1,253,976
2131.0300-Commodities and Materials 3,280,371 _
Total 4,534,347 _
BUREAU OF FLEET OPERATIONS - 38 -
2140.0100-Contractual Services 37,485
2140.0300-Commodities and Materials 15,000 _
Total 52,485 _
TOTAL DEPARTMENT OF FLEET AND
FACILITY MANAGEMENT 13,211,651
1,157,867 $
1,157,867
1,480,418 6,681,901 462,500
8,624,819
1,253,976 3,280,371
4,534,347
37,485 15,000
52,485
13,211,651
1,185,499
1,185,499
1,285,344 6,457,295 443,667
8,186,306
1,252,182 3,258,566
4,510,748
14,100
14,100
12,711,154
DEPARTMENT OF FINANCE GENERAL - 99 -
2005.0000-Personnel Services 10,089,347 10,089,347 9,648,490
2005.0100-Contractual Services 1,897,713 1,897,713 1,502,888
2005.0955-lnterest on Library Financing 1,500,000 1,500,000 2,102,598
2005.9027-City's Contribution to Social Security Tax 17,198 17,198 17,198
2005.9076-City's Contribution to Medicare Tax 789,004 789,004 789,004
2005.9112-Property Maintenance Contract for the
Harold Washington Library Center 7,174,166 7,174,166 7,147,323
2005.9199 -For Purchase of Chicago Public Library
Books and Materials 7,500,000 7,500,000 7,503,588
2005.9980-Municipal Fund Pension Allocation . 3,557,763 3,557,763 . -
Total 32,525,191 32,525,191 28,711,089
TOTAL GENERAL GOVERNMENT 46,894,709 46,894,709 42,607,742
148
Schedule C-5 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
Original Final Actual
Budget Budget
LIBRARY FUND - Concluded
CULTURAL AND RECREATIONAL
CHICAGO PUBLIC LIBRARY - 91 -
2005.0000-Personnel Services $ 51,918,465 $ 51,918,465 $ 51,093,281
2005.0100-Contractual Services 3,495,306 3,495,306 3,266,793
2005.0300-Commodities and Materials 540,520 540,520 528,214
2005.9400-lnternal Transfers and Reimbursements 55,000 55,000 55,000
Total 56,009,291 56,009,291 54,943,288
TOTAL CULTURAL AND RECREATIONAL 56,009,291 56,009,291 54,943,288
TOTAL LIBRARY FUND 102,904,000 102,904,000 97,551,030
SPECIAL EVENTS, TOURISM AND FESTIVALS FUND MUNICIPAL HOTEL OPERATORS' OCCUPATION TAX GENERAL GOVERNMENT OFFICE OF THE MAYOR - 01 -
2005.0000-For Personnel Services 550,686 550,686 452,632
Total 550,686 550,686 452,632
CITY COUNCIL COMMITTEE ON SPECIAL EVENTS AND CULTURAL AFFAIRS -15 -
2155.0000-Personnel Services 150,380 150,380 154,295
2155.0300-Commodities and Materials 8,720 8,720 3,432
Total 159,100 159,100 157,727
DEPARTMENT OF FINANCE GENERAL - 99 -
2005.0000-Personnel Services 1,105,221 1,105,221 986,401
2005.0100-Contractual Services 5,969,370 5,969,370 4,102,505
2005.0912-For Payment of Bonds 5,000,000 5,000,000 5,000,000
2005.0991-To Provide for Matching and Supplementary
Grant Funds 183,750 183,750 128,750
2005.9027-City's Contribution to Social Security Tax 1,726 1,726. 1,726
2005.9076-City's Contribution to Medicare Tax 79,206 79,206 79,206
2005.9124-For the Sisters City Program 528,643 528,643 528,643
To Reimburse Corporate Fund for Pension 1,107,041 1,107,041 1,107,041
To Reimburse Corporate Fund for Indirect Cost
Chargeable to Fund 3,561,000 3,561,000 3,561,000
2005.9700-Reimbursable Transfers Between Funds 2,193,355 2,193,355 2,190,855
Total 19,729,312 19,729,312 17,686,127
20,439,098 20,439,098 18,296,486
149
Schedule C-5 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
SPECIAL EVENTS. TOURISM AND FESTIVALS FUND - Continued MUNICIPAL HOTEL OPERATORS' OCCUPATION TAX - Concluded CULTURAL AND RECREATIONAL
DEPARTMENT OF CULTURAL AFFAIRS - 23 -
2015.0000-Personnel Services $
2015.0100-Contractual Services
2015.0200-Travel
2015.0300-Commodities and Materials
2015.9188-For Expenses Related to the Operations of
Millennium Park
2015.9219-lmplementation of Cultural Plan
2015.9288-For Expenses Related to the Programming for
Millennium Park
2015.9800-For Special Events Projects _
Total ~
TOTAL CULTURAL AND RECREATIONAL _
TOTAL MUNICIPAL HOTEL OPERATORS' OCCUPATION TAX _
DEPARTURE TAX
GENERAL GOVERNMENT
DEPARTMENT OF FINANCE - 27 -
2003.0100-Contractual Services _
Total : _
DEPARTMENT OF AVIATION - 85 -
2015.0100-Contractual Services _
Total _
TOTAL GENERAL GOVERNMENT
Original Budget
6,403,144 $ 3,002,562
10,500
95,000
6,680,000 1,250,000
165,000 12,298,696
29,904,902
29,904,902
50,344,000
545,155
545,155
606,051
606,051
a a r- a r\f\n
i,1oi,z0d
Final Budget
6,403,144 $ 3,002,562
10,500
95,000
6,680,000 1,250,000
165,000 12,298,696
29,904,902
29,904,902
50,344,000
545,155
545,155
606,051
606,051
1,151,206
Actual
5,989,340 2,789,818 5,640 51,637
6,680,000 1,250,000
165,000 12,117,841
29,049,276
29,049,276
47,345,762
545,155
545,155
606,051
606,051
1,151,206
150
Schedule C-5 - Concluded CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2016
Original Final Actual
Budget Budget
SPECIAL EVENTS. TOURISM AND FESTIVALS FUND - Concluded DEPARTURE TAX - Concluded PUBLIC SAFETY
DEPARTMENT OF BUSINESS AFFAIRS AND CONSUMER PROTECTION - 70 -
2005.0000-Personnel Services $ 199,149 $ 199,149 $ 199,149
Total 199,149 199,149 199,149
TOTAL PUBLIC SAFETY 199,149 199,149 199,149
TOTAL DEPARTURE TAX 1,350,355 1,350,355 1,350,355
TOTAL SPECIAL EVENTS, TOURISM
AND FESTIVALS FUND 51,694,355 51,694,355 48,696,117
HEALTH AND WELFARE FUND MISCELLANEOUS
2005.9999-Miscellaneous 74,000 74,000
Total 74,000 74,000
TOTAL MISCELLANEOUS 74,000 74,000
HEALTH AND WELFARE FUND 74,000 74,000
TOTAL SPECIAL REVENUE FUNDS $ 591,212,928 $ 591,903,470 $ 576,718,085
151
Schedule C-6
CITY OF CHICAGO, ILLINOIS
SPECIAL REVENUE FUNDS - FEDERAL, STATE AND LOCAL GRANTS COMBINING BALANCE SHEET December 31, 2016
With Comparative Totals for December 31, 2015
(AiTiOuiiia die in ! iiuusdiius ui uuiidiaj
General Public Trans-
Government Health Safety portation
ASS ETS: " " """"'"""" '"""'"
Cash and Cash Equivalents $-$-$-$
Investments 4,881 9,359 9,937 12,211
Restricted Assets - Cash and Cash Equivalents ...
Receivables (Net of Allowances) 1,350 62 2,746 66
Due from Other Funds 11,636 774 4,343 153
Due from Other Governments 84 28,617 28,302 258,675
Other Assets
Total Assets $ 17,951 $ 38,812 $ 45,328 $ 271,105
LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities:
Voucher Warrants Payable
Due to Other Funds
Accrued and Other Liabilities
Unearned Revenue
$ 257 $ 18,457 $ 7,579 $ 58,719
28,168 18,666 26,163 187,686
1,806 1,285 763 548
4,017 6,322 9,524 30,711
Total Liabilities $ 34,248 $ 44,730 $ 44,029 $ 277,664
Deferred Inflows:
Deferred Inflows 81 7,712 25,619 187,766
Fund Balance (Deficit):
Restricted ...
Unassigned (16,378) (13,630) (24,320) (194,325)
Total Fund Balance (Deficit) (16,376) (13,630) (24,320) (194,325)
Total Liabilities, Deferred Inflows and Fund Balance $ 17,951 $ 38,812 $ 45,328 $ 271,105
152
Cultural Urban Intrafund Totals
Environmental and Human Develop- Capital Activity
Aviation Control Recreational Services ment Outlay Elimination 2016 2015
4,702
1,176 54
$
4,071 55,630 3,215 11 302 3,009 3,173 256 100,387 3,772
2,541 3 93
306 303
4,963
1,622 8,445
108,351 3,218 4,630 25,908
425,126 4,075
36,793 3,218 3,796
50,724 421,526 4,075
$ 78 $ 5,932 $ 7,347 $ 166,479 $ 3,246 $ 15,030 $
$ 2 $ 15 $ 43 $ 75,658 $|109|110 18,903|1099|47 7,676
3,225 37,872
81 $ 9,141 $
906 409
72
576 5,743
$ 169,952 $ 156,058
281,017 261,316
12,203 7,408
97,990 72,293
23 $ 3,425 $ 140,109 $ 1,635 $ 15,293 $
253,053
72 5,862 3,816 - 1,304 - - 11,054 17,617
: - : (3,247) - (2,061) - (253,961) (233,759)
72 5,862 3,816 (3,247) 1,304 (2,061) - (242,907) (216,142)
$ 78 $ 5,932 $ 7,347 $ 166,479 $ 3,246 $ 15,030 $ $ 571,308 $ 520,132
153
Schedule C-7
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, 2016 With Comparative Totals for 2015 (Amounts are in Thousands of Dollars)
General Public Trans-
Government Health Safety portation
Revenues:
^Federal/State Grants ..:$ 5,897 $ 86,300 •$ 54.972 $ 172,946
Total Revenues 5,897 86,300 54,972 172,946
Expenditures:
Current 436 86,905 62,568 214,819
Total Expenditures 436 86,905 62,568 214,819
Revenues Over Expenditures 5,461 (605) (7,596) (41,873)
Other Financing Sources (Uses):
Proceeds of Debt, net ... 30,746
Operating Transfers Out (4,000) -
Total Other Financing Sources (Uses) (4,000) - - 30,746
Revenues and Other Financing Sources Over (Under) Expenditures and
Other Financing Sources (Uses) 1,461 (605) (7,596) (11,127)
Fund Balance (Deficit) - Beginning of Year (17,839) (13,025) (16,724) . (183,198)
Fund Balance (Deficit) - End of Year $ (16,378) $ (13,630) $ (24,320) $ (194,325)
154
Environmental Cultural and Human Urban Capital Totals
Aviation Control Recreational Services Development Outlay 2016 2015
$ (1) $ 498 $ 9,969 $ 364,650 $ (169) $ 48,672 $ 743,734 $ 763,001
(1) 498 9,969 364,650 (169) 48,672 743,734 763,001
620 9,815 374,322 - 47,760 797,245 772,755
620 9,815 374,322 - 47,760 797,245 772,755
(1) (122) 154 (9,672) (169) 912 (53,511) (9,754)
30,746 28,657 (4,000) (10,000) 26,746 18,657
(1) (122) 154 (9,672) (169) 912 (26,765) 8,903
73 5,984 3,662 6,425 1,473 (2,973) (216,142) (225,045)
72 $ 5,862 $ 3,816 $ (3,247) $ . 1,304 $ (2,061) $ (242,907) $ (216,142)
155
This Page Intentionally Left Blank
156
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.
157
Schedule D-1
CITY OF CHICAGO, ILLINOIS NONMAJOR CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 2016
(Amounts are in Thousands of Dollars)
Highway and
Transportation
„__,,., . . ,.,,^_.__J1„,.. ... ........ Projects-. ..
ASSETS
Cash and Cash Equivalents $ 7
Investments 15
Accounts Receivable (Net of Allowances)
Due from Other Governments -
Total Assets $ 22
Building Projects
Equipment - Projects
Chicago Public Building Commission
$
$
$
Total Nonmajor Capital Project Funds
32,528 687|1010|115
18,040
32,658 687
18,040
$ 115 $ 33,215 $ 18,040 $ 51,392
LIABILITIES AND FUND BALANCE Liabilities:
Voucher Warrants Payable $ 123 $ - $ 22,555 $ - $ 22,678
Due to Other Funds - 722 23,582 18,040 42,344
Accrued and Other Liabilities ^_ -_ 241 -_ 241
Total Liabilities 123 722 46,378 18,040 65,263
Fund Balance:
Restricted (101) (607) 25,696 - 24,988
Unassigned -_ - (38,859) -_ (38,859)
Total Fund Balance (101) (607) (13,163) - (13,871)
Total Liabilities and Fund Balance $ 22 $ 115 $ 33,215 $ 18,040 $ 51,392
158
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, 2016 (Amounts are in Thousands of Dollars)
Highway and
Transportation Building Projects Projects
$
REVENUES
Investment Income $
Miscellaneous
Total Revenues
EXPENDITURES
Capital Outlay
Total Expenditures
Revenues Over (Under) Expenditures
OTHER FINANCING SOURCES (USES)
Transfers Out
(4) (603)
Total Other Financing Sources (Uses) ...
(101)
Net Change in Fund Balance
Fund Balance - Beginning of Year
Fund Balance - End of Year $
Total Nonmajor Capital Project Funds
$
1,245 1,012 2,257
68,898 68,898
(66,641)
(1,500) (1,500)
(68,141) 54,270 $ (13,871)
159
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160
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.
161
Schedule E-1
CITY OF CHICAGO, ILLINOIS FIDUCIARY FUNDS - AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES December 31, 2016
(Amounts are in Thousands of Dollars)
License and
Payroll Payroll Other Special Special
Clearing Deduction Clearing Deposit Assessment
.^Eund^.,-r:7-^5.undrr,,—-^=V7r;Fund.-.,CT„—^
ASSETS: Cash,
January 1,2016 $ 6,354 $ 306 $ 201,580 $ 39,864 $ 761 $ 248,865
Additions 4,071,689 362 3,798,256 140,429 3,735 8,014,471
Deductions 4,071,502 543 3,875,239 167,717 612 8,115,613
Cash,
December 31,2016 6,541 125 124,597 12,576 3,884 147,723
Investments,
January 1,2016 - 94 50,073 12,266 3,389 65,822
Additions 27,629 529 14,304,265 53,118 10,580 14,396,121
Deductions 13,635 355 14,243,253 38,480 13,680 14,309,403
Investments,
December 31,2016 13,994 268 111,085 26,904 289 152,540
Cash and Investments with Escrow Agent,
January 1,2016 - - 5,090 122 - 5,212
Additions - - 99,871 - - 99,871
Deductions -_ -__ 95,895 -_ -__ 95,895
Cash and Investments with Escrow Agent,
December 31,2016 -_ - 9,066 122 - 9,188
Accounts Receivables,
January 1,2016 - 3,846 153,245 1,582 1,040 159,713
Additions 881 - 317,028 15,347 - 333,256
Deductions 236 - 304,950 15,988 15 321,189
Accounts Receivables,
December 31,2016 645 3,846 165,323 941 1,025 171,780
162
Schedule E-1 - Concluded CITY OF CHICAGO, ILLINOIS FIDUCIARY FUNDS - AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES December 31, 2016
(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 1,2016 $ 6,354 $ 4,246 $ 409,988 $ 53,834 $ 5,190 $ 479,612
Additions 4,100,199 . 891 18,519,420 208,894 14,315 22,843,719
Deductions 4,085,373 898 18,519,337 222,185 14,307 22,842,100
Total Assets,
December 31,2016 $ 21,180 $ 4,239 $ 410,071 $ 40,543 $ 5,198 $ 481,231
LIABILITIES:
Voucher Warrants Payable,
January 1,2016 $ - $ 34 $ 29,269 $ 2,377 $ 4 $ 31,684
Additions 8,986,606 - 800,699 25,652 6 9,812,963
Deductions 8,986,428 - 790,892 24,884 6 9,802,210
Voucher Warrants Payable,
December 31,2016 178 34 39,076 3,145 4 42,437
Accrued Liabilities,
January 1,2016 6,354 4,212 380,719 51,457 5,186 447,928
Additions 1,332,149 - 838,879 23,616 31 2,194,675
Deductions 1,317,501 7 848,603 37,675 23 2,203,809
Accrued Liabilities,
December 31,2016 21,002 4,205 370,995 37,398 5,194 438,794
Total Liabilities,
January 1,2016 6,354 4,246 409,988 53,834 5,190 479,612
Additions 10,318,755 - 1,639,578 49,268 37 12,007,638
Deductions 10,303,929 7 1,639,495 62,559 29 12,006,019
Total Liabilities
December 31,2016 $ 21,180 $ 4,239 $ ' 410,071 $ 40,543 $ 5,198 $ 481,231
163
Schedule E-2
CITY OF CHICAGO, ILLINOIS FIDUCIARY FUNDS - PENSION TRUST FUNDS COMBINING STATEMENT OF PLAN NET POSITION December 31, 2016
(Amounts are in Thousands of Dollars)
Pension Trust Funds
Municipal
Employees' Laborers' Policemen's Firemen's Total
ASSETS
Cash and Cash Equivalents $ 489 $ 27,042 $ 94,260 $ 66,905 $ 188,696
Receivables
Employer and Other 201,876 15,111 477,999 163,958 858,944
Interest and Dividends 11,847 2,004 5,990 5,903 25,744
Total Receivables 213,723 17,115 483,989 169,861 884,688
Due from City 24,353 2,162 90,537 38,832 155,884
Property, Plant,
Equipment and Other 15_ 5_ : 214 234
Investments, at Fair Value Bonds and U.S. Government
Obligations 1,007,436 223,889 535,458 176,628 1,943,411
Stocks 1,926,589 611,831 1,331,825 520,286 4,390,531
Mortgages and Real Estate 458,151 63,491 74,676 21,896 618,214
Other 893,571 228,917 448,967 28,676 1,600,131
Total Investments 4,285,747 1,128,128 2,390,926 747,486 8,552,287
Invested Securities Lending
Collateral 304,808 55,359 177,837 123,059 661,063
Total Assets 4,829,135 1,229,811 3,237,549 1,146,357 10,442,852
LIABILITIES
Voucher Warrants Payable 88,099 5,378 194,693 4,284 292,454
Securities Lending Collateral 304,808 55,359 177,837 123,059 661,063
Total Liabilities 392,907 60,737 372,530 127,343 953,517
Deferred Inflows - 1,333 - : 1,333
Net Position Restricted for
Pension Benefits $ 4,436,228 $ 1,167,741 $ 2,865,019 $ 1,019,014 $ 9,488,002
164
Schedule E-3
CITY OF CHICAGO, ILLINOIS
FIDUCIARY FUNDS - PENSION TRUST FUNDS
COMBINING STATEMENT OF CHANGES IN PLAN NET POSITION
Year Ended December 31, 2016
(Amounts are in Thousands of Dollars)
Pension Trust Funds
Municipal
Employees' Laborers' Policemen's Firemen's Total
ADDITIONS Contributions
Employees $ 130,391 $ 17,246 $ 101,476 $ 48,960 $ 298,073
City 157,445 14,443 281,583 154,101 607,572
Total Contributions 287,836 31,689 383,059 203,061 905,645
Investment Income Net Appreciation in Fair
Value of Investments 178,673 45,918 105,369 40,958 370,918
Interest, Dividends and Other .. 121,326 20,684 47,482 24,283 213,775
Investment Expense (20,477) (8,864) (9,349) (5,007) (43,697)
Net Investment Income 279,522 57,738 143,502 60,234 540,996
Securities Lending Transactions
Securities Lending Income 2,013 400 536 870 3,819
Securities Lending Expense (116) (140) 74 (217) (399)
Net Securities Lending
Transactions 1,897 260 610 653 3,420
Total Additions 569,255 89,687 527,171 263,948 1,450,061
DEDUCTIONS Benefits and Refunds of
Deductions 867,397 156,523 716,351 286,758 2,027,029
Administrative and General 7,057 4,080 4,750 3,277 19,164
Total Deductions 874,454 160,603 721,101 290,035 2,046,193
Net Decrease in Net Position (305,199) (70,916) (193,930) (26,087) (596,132)
Net Position Restricted for Pension Benefits:
Beginning of Year 4,741,427 1,238,657 3,058,949 1,045,101 10,084,134
End of Year $ 4,436,228 $ 1,167,741 $ 2,865,019 $ 1,019,014 $ 9,488,002
165
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166
PART III
STATISTICAL SECTION
(UNAUDITED)
This part of the City's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the City's overall financial health.,
Contents:
Financial Trends
These schedules contain trend information to help the reader understand how the City's financial performance and well being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the 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.
167
Table 1
CITY OF CHICAGO
NET POSITION BY COMPONENT
Last Ten Fiscal Years Ended December 31, 2016
(Amounts are in Thousands of Dollars)
2007
GjoveTrim
Net Investment in Capital Assets .. $ 570,665
Restricted 2,980,207
Unrestricted (deficit) (3,435,506)
Total governmental activities,
net position $ 115,366
Business-type activities:
Net Investment in Capital Assets .. $ 2,168,833
Restricted 881,908
Unrestricted (1,561,634)
Total business type activities,
net position $ 1,489,107
Primary Government:
Net Investment in Capital Assets .. $ 2,739,498
Restricted 3,862,115
Unrestricted (4,997,140)
Total primary government,
net position $ 1,604,473
2010
2008
(324,284) 3,611,533 (6,582,562)
494,930 2,842,149 (4,092,388)
2009 (1)
$ 251,103 3,735,128 (5,840,026)
2,365,522 790,881 (1,431,859)
$ 2,286,658 821,909 (1,541,136)
$ (755,309) $ (1,853,795) $ (3,295,313)
$ 2,323,394 779,894 (1,517,891)
$ 2,041,238 4,402,414 (8,014,421)
$ 2,537,761 4,557,037 (7,381,162)
$ 1,585,397 $ 1,567,431 $ 1,724,544
$ 2,818,324 3,622,043 (5,610,279)
$ 830,088 $ . (286,364) $ (1,570,769)
Note: The City began to report accrual information when it implemented GASB Statement No. 34 in fiscal year ended 2002.
As a result of the implementation of GASB Statement No. 53, the results of 2009 were restated, retroactively.
The City implemented GASB Statement No. 68 in 2015 and the net position was restated at January 1, 2015.
168
2015
$ (299,859) 1,596,408 (5,691,215)
$ (4,394,666)
$ (215,961) 1,908,516 (7,537,057)
$ (5,844,502)
$ (242,862) 1,940,911 (9,120,377)
$ (7,422,328)
$ 28,744 1,491,995 (10,564,064)
$ (9,043,325)
$ (292,432) 1,519,914 (25,263,289)
$ (24,035,807)
$ (65,466) 2,269,517 (29,676,310)
$ (27,472,259)
$ 2,451,787 874,837 (1,541,515)
$ 1,785,109
$ 2,388,310 982,517 (1,354,572)
$ 2,016,255
$ 2,446,242 883,758 (1,278,777)
$ 2,051,223
$ 2,713,825 978,972 (1,185,755)
$ 2,507,042
$ 2,892,548 1,042,980 (3,731,167)
$ 204,361
$ 3,373,063 879,934 (4,210,657)
$ 42,340
$ 2,151,928 2,471,245 (7,232,730)
$ (2,609,557)
$ 2,172,349 2,891,033 (8,891,629)
$ (3,828,247)
$ 2,203,380 2,824,669 (10,399,154)
$ (5,371,105)
$ 2,742,569 2,470,967 (11,749,819)
$ (6,536,283)
$ 2,600,116 2,562,894 (28,994,456)
$ (23,831,446)
$ 3,307,597 3,149,451 (33,886,967)
$ (27,429,919)
169
Table 2
CITY OF CHICAGO
CHANGES IN NET POSITION - ACCRUAL BASIS OF ACCOUNTING Last Ten Fiscal Years Ended December 31, 2016 (Amounts are in Thousands of Dollars)
Expenses
Governmental Activities:
...-J5fn.?raj: Government.......,..... ...J$_
Public Safety
Streets and Sanitation
Transportation
Health
Cultural and Recreational
Interest on Long-term Debt
Total Governmental Activities
Business-type Activities:
Water
Sewer
Chicago Midway
International Airport
Chicago-O'Hare
International Airport
Chicago Skyway
Total Business-type Activities
Total Primary Government $
2007
2008
2010
2,557,681 2,824,028 235,863 373,437 142,352 126,939 404,218 6,664,518
2009
.,2,384,586 2,434,842 371,112 381,090 170,838 140,065 381,504
6,264,037
350,181 136,961
211,082
751,351 13,555
371,441 158,292
217,609
803,404 12,359
382,502 169,982
206,613
811,710 11,775 1,582,582
,2,364,754, 2,521,151 297,156 351,101 166,914 129,996 386,125 6,217,197
399,347 184,888
224,465
834,487 11,312 1,654,499
1,563,105
7,740,220 $ 7,827,142 $ 7,799,779 $ 8,319,017
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.
170
2015
2,734,419 2,689,471 245,898 410,802 151,152 102,808 474,226 6,808,776
2,751,944 2,910,160 228,622 383,510 123,055 146,283 460,660 7,004,234
2,667,205 3,044,811 242,500 400,506 119,678 128,302 477,959 7,080,961
2,913,469 275,814 475,751 125,068 121,548 580,701
7,350,140
$ 2,857,789 $ 6,238,028 $
3,192,197 253,432 471,689 119,199 118,775 861,293 11,254,613
4,549,261 4,266,146 256,985 378,779 116,692 114,676 495,856 10,178,395
416,289 194,838
417,499 195,911
442,474 216,587
455,433 225,600
900,346 505,032
816,012 350,388
225,867
879,281 10,930
1,719,510
955,276 10,621
1,805,174
920,781 10,585
1,831,507
1,029,559 10,314 1,969,137
1,380,512 8,727 3,110,341
1,330,240 8,651 2,825,324
$ 8,528,286 $ 8,809,408 $ 8,912,468 $ 9,319,277 $ 14,364,954 $ 13,003,719
171
Table 2 - Continued CITY OF CHICAGO
CHANGES IN NET POSITION - ACCRUAL BASIS OF ACCOUNTING Last Ten Fiscal Years Ended December 31, 2016 (Amounts are in Thousands of Dollars)
Program Revenues
Governmental Activities: „ Licenses, Permits, Fines and Charges for Services:
General Government $
Public Safety
Streets and Sanitation
Transportation
Health
Cultural and Recreational
Operating Grants and Contributions
Capital Grants and Contributions
Total Governmental Activities
Business-type Activities: Licenses, Permits, Fines and Charges for Services:
Water
Sewer
Chicago Midway
International Airport
Chicago-O'Hare
International Airport
Chicago Skyway
Capital Grants and Contributions
Total Business-type Activities and
Program Revenues
Total Primary Government
Program Revenues $_
Net (Expenses)/Revenues
Governmental Activities $
Business-type Activities
Total Primary Government
Net Expense $
2008
2010
2007
370,028 150,710 38,092 21,640 8,332 21,635 674,677 114,871
440,023 $ 129,518
40,578
14,071 3,157
25,725 624,356 139,949
422,363 $ 155,529
41,467
13,262 2,795
24,412 610,974 137,613
2009
382,617 $ 158,490
30,990
24,895 2,504
1,417,377
1,399,985
1,408,415
22,375 611,301 115,261
370,244 160,005
124,985
684,282
224,823
458,395 198,229
149,056
702,603
246,309
334,377 138,681
107,253
652,763
268,331
1,348,433
410,213 175,163
122,301
624,443
1,564,339
1,543,294
1,501,405
211,174
1,754,592
2,909,820 $ 2,981,716 $ 2,891,727 $ 3,154,577
1,234
100,093
38,275
(4,868,675) $ (4,846,660) $ (4,868,764) $ (5,264,533)
(39,288)
(4,830,400) $ (4,845,426) $ (4,908,052) $ (5,164,440)
172
2014
388,886 $ 211,157 37,291 28,613 7,796 7,201 788,812 282,008
1,751,764
199,572 42,138 39,343 1,751 14,454 748,256 172,456
196,344 45,629 46,076 2,023 15,947 634,384 184,415
452,892 $ 467,423 $ 505,275 $
1,592,241
208,206 44,552 44,278 2,281 14,643 470,659 249,860
1,539,754
534,325 $ 182,670
39,602
37,522 5,839
14,850 496,679 249,064
1,560,551
501,468 202,379 100,996
52,524 7,232
15,122 516,728 221,532
1,617,981
454,221 203,349
157,371
679,402
257,438
1,751,781
576,287 253,912
201,749
857,114
83,219
1,972,281
637,114 292,290
221,205
870,654
213,067
2,234,330
692,634 322,228
216,662
1,012,529
95,624
2,339,677
769,408 375,877
225,383
1,029,788
85,968
2,486,424
761,411 368,966
232,483 1,139,380
115,206 2,617,446
$ 3,503,545 $ 3,643,143 $ 3,826,571 $ 3,879,431 $ 4,046,975 $ 4,235,427
32,271
(207,878)
167,107
402,823
370,540
$ (5,057,012) $ (5,333,372) $ (5,488,720) $ (5,810,386) $ (9,694,062) $ (8,560,414)
(623,917)
$ (57024,741) $ (5,166,265) $ (5,085,897) $ (5,439,846) $ (10,317,979) $ (8,768,292)
173
Table 2 - Concluded CITY OF CHICAGO
CHANGES IN NET POSITION - ACCRUAL BASIS OF ACCOUNTING Last Ten Fiscal Years Ended December 31, 2016 (Amounts are in Thousands of Dollars)
General Revenues and Other Changes in Net Position
Governmental Activities: Taxes
Property Tax $
Utility Tax
Sales Tax
Transportation Tax
Transaction Tax
Special Area Tax
Other Taxes
Grants and Contributions Not
Restricted to Specific Programs
Unrestricted Investment Earnings
Loss on Capital Assets
Transfers
Miscellaneous
Total Governmental Activities
Business-type Activities:
Investment Earnings
Miscellaneous
Special Item
Transfers
Total Business-type Activities
Total Primary Government $_
Change in Net Position
Governmental Activities $
Business-type Activities
Total Primary Government $
2009(1)
2010
2008
799,878 629,497 273,951 321,362 275,434 531,314 262,734,
712,360 90,176
797,026 579,101 252,282 333,199 205,026 501,042 250,982
601,198 12,296
796,928 561,936 260,364 335,235 227,772 477,241 259,325
654,043 100,269
2007
732,415 552,179 293,078 332,459 304,715 533,260 245,408
714,661 182,700
238,126
149,902
79.279
3,975,985
3,770,278
3,823,015
1,000 69,941
57,451 37,605
12,381 8,941
6,831 50,190
3,961,816
100,720 27,313
95,056
21,322
57,021
(1,000)
127,033
(870,675) 96,290
(1,441,518) 157,114
(906,859) 165,308
4,088,849 $ 4,071,041 $ 3,791,600 $ 3,880,036
(1,098,486) (17,966)
(741,551) $ (774,385) $ (1,116,452) $ (1,284,404)
As a result of the implementation of GASB Statement No. 53, the results of 2009 were restated, retroactively.
The City implemented GASB Statement No. 68 in 2015 and the net position was restated at January 1, 2015.
174
2012
$ 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
$ 1,179,395 562,697 346,319 384,978 466,432 444,972 369,405
815,157 (1,357)
625 264,806 4,833,429
$ 1,264,473 557,992 347,131 449,744 542,896 537,026 395,889
781,968 30,400
2,540 213,903 5,123,962
48,517 34,687 (53,910)
(1,000)
28,294
$ 3,985,953
25,197 38,842
64,039 $ 3,947,575
(13,243) 47,354
34,111
$ 3,998,201
35,849 49,430
85,279 $ 4,274,668
27,563 39,744
(625)
66,682 $ 4,900,111
13,196 35,201
(2,540)
45,857
$ 5,169,819
$ (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)
$ (4,860,633) (557,235) $ (5,417,868)
$ (3,436,452) (162,021) $ (3,598,473)
175
Table 3
CITY OF CHICAGO, ILLINOIS
GENERAL GOVERNMENTAL REVENUES BY SOURCE (1) Last Ten Years Ended December 31, 2016 (Amounts are in Thousands of Dollars)
Percent
2007 of Total 2008
Revenues:
Property Tax $ 661,707 12.1 %$ 729,823
Utility Tax 552,179 10.1 629,497
-• • Sales Tax 570,927 10:4 '548,571
Transportation Tax 332,459 6.1 321,362
State Income Tax 433,446 7.9 435,393
Transaction Tax 304,715 5.6 275,434
Special Area Tax 488,193 8.9 552,709
Other Taxes * 245,408 4.5 262,734
Total Taxes 3,589,034 65.6 3,755,523
Federal/State Grants 781,967 14.3 796,911
Internal Service 303,827 5.5 329,643
Licenses and Permits 148,172 2.7 114,707
Fines 240,277 4.4 274,443
Investment Income 182,700 3.3 90,176
Charges for Services 151,369 2.8 144,161
Miscellaneous 79,956 1.4 79,279
Total Revenues $ 5,477,302 100.0 %$ 5,584,843
%
15.1 10.9 9:4 6.2 6.5 3.8 9.1 4.7
13.1 11.3 9.9 5.8 7.8 4.9 9.9 4.7
2009
% $
806,010
579,101
503,952'
333,199
347,814
205,026
487,909
65.7
14.1 5.8 1.9 5.0 0.6 2.4 4.5
67.4
14.2 5.9 2.1 4.9 1.6 2.6 1.3
250,982
3,513,993
753,269 306,095 100,458 267,891 31,520 124,557 238,126
100.0 % $ 5,335,909 100.0 %
2014
Revenues:
Property Tax $ 929,841
Utility Tax 570,469
Sales Tax 658,799
Transportation Tax 406,624
State Income Tax 404,050
Transaction Tax 379,256
Special Area Tax 331,380
Other Taxes 323,946
Total Taxes 4,004,365
Federal/State Grants 812,175
Internal Service 335,762
Licenses and Permits 122,143
Fines 353,517
Investment Income 69,650
Charges for Services 172,928
Miscellaneous 179,939
Total Revenues $ 6,050,479
NOTE:
2015
18.6 8.0
10.3 6.5 6.0 7.8 7.4 5.7
15.4 9.4
10.9 6.7 6.7 6.3 5.5 5.4
869,841 562,697 703,234 384,978 456,397 466,432 353,413 369,405
14.0 9.0
11.3 6.2 7.3 7.5 5.7 5.9
2016
% $
% $
%
66.3
13.3 5.5 2.0 5.8 1.2 2.9 3.0
4,166,397
764,846
382,758
129,035
387,160
(26,895)
147,927
264,806
66.9
12.3 6.2 2.1 6.2
(0.4) 2.4 4.3
70.3
10.8 5.4 1.9 4.9
• 0.4 3.2 3.1
1,294,063 557,992 713,557 449,744 413,673 542,896 516,886 395,889
4,884,700
745,603 376,895 132,873 337.769 30,400 221,965 .213,865
100.0 % $ 6,216,034 100.0 % $ 6,944,070 100.0 %
(1) Includes General, Special Revenue, Debt Service and Capital Project Funds.
176
Percent of Total
Percent Percent Percent
of Total 2012 of Total 2013 of Total
14.0 10.4 9.8 6.2 7.2 4.2 9.0 4.8
754,081 561,936 527,004 335,235 385,668 227,772 486,526 259,325
15.2 5.5 1.8 5.1 1.9 2.1 2.8
3,537,547 65.6
815,879 295,765 96,240 272,667 103,725 113,565 149,902
888,531 564,236 563,156 331,441 344,674 250,486 552,894 269,258
3,764,676
976,051 321,138 102,702 283,822 73,921 160,649 173,768
15.2 9.6 9.6 5.7 5.9 4.3 9.4 4.5
64.2
16.7 5.5 1.8 4.8 1.3 2.7 3.0
941,398 548,682 594,290 373,544 391,285 281,957 370,454 294,280
3,795,890
877,864 319,285 117,568 306,510 90,885 170,724 135,511
16.2 %
9.4 10.2
6.5
6.7
4.9
6.3
5.0 65.2
15.1 5.5 2.1 5.3 1.6 2.9 2.3
866,149 547,651 623,942 381,080 436,740 344,493 332,040 298,951
3,831,046
708,702
324,601
,123,633
329,460
(19,111)
161,415
122,710
15.5 9.8
11.2 6.8 7.8 6.2 5.9 5.4
68.6
12.7 5.8 2.2 5.9
(0.3) 2.9 2.2
0/ /O
177
$ 5,385,290 100.0 % $ 5,856,727 100.0 % $ 5,814,237 100.0 % $ 5,582,456 100.0 %
Table 4
CITY OF CHICAGO, ILLINOIS
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) Last Ten Years Ended December 31, 2016 (Amounts are in Thousands of Dollars)
2007
Percent of Total
Percent of Total
Percent of Total
Expenditures: Current:
__P.ubJic^S.afety.......................,..,$.1,880,599 ^. . 30.8Jo_...$ 1,892,152 , 27,7,.V . $. 1,91.3,7,1.1 ..... ,305.:%.
General Government 1,650,679 27.1 1,804,925 26.4 1,663,990 26.5
Employee Pensions 371,649 6.1 413,690 6.0 430,915 6.9
Streets and Sanitation 377,485 6.1 382,628 5.6 300,131 4.8
Transportation 267,476 4.4 334,684 4.9 261,948 4.2
Health 195,254 .3.2 184,597 2.7 177,812 2.8
Cultural and Recreational 108,527 1.8 117,664 1.7 107,604 1.7
Other 4,427 0.1 14,483 0.2 7,676 0.2
Capital Outlay 602,433 9.9 661,464 9.7 619,273 9.9
Debt Service:
Principal Retirement 297,503 4.9 656,805 9.6 434,905 6.9
Interest and Other Fiscal
Charges 342,489 5.6 376,297 5.5 351,430 5.6
Total Expenditures $6,098,521 100.0% $6,839,389 100.0 % $6,269,395 100.0%
Debt Service as a Percentage of
Non Capital Expenditures (2) 11.4 % 16.7 % 13.6%
Percent Percent Percent
2014 of Total 2015 of Total 2016 of Total
Expenditures: Current:
PublicSafety $2,066,979 28.8% $2,111,709 28.6 % $2,265,213 30.5%
General Government 2,043,557 28.5 2,063,897 27.9 2,046,396 27.6
Employee Pensions 483,493 6.7 479,581 6.5 810,497 10.9
Streets and Sanitation 269,393 3.8 249,078 3.3 248,029 3.3
Transportation.,... 518,501 7.2 475,482 6.4 402,477 5.4
Health 128,769 1.8 119,048 1.6 116,416 1.6
Cultural and Recreational 93,525 1.4 95,049 1.3 94,030 1.3
Other 5,410 0.0 6,726 0.1 4,086 0.1
Capital Outlay 395,216 5.5 425,050 5.8 286,018 3.9
Debt Service:
Principal Retirement 599,395 8.4 513,806 7.0 660,019 8.9
Interest and Other Fiscal
Charges 568,156 7.9 850,243 11.5 483,468 6.5
Total Expenditures $7,172,394 100.0% $7,389,669 100.0 % $7,416,649 100.0%
Debt Service as a Percentage of
Non Capital Expenditures (2) 17.9% 20.1 % 16.7%
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.
178
Percent of Total
Percent of Total
Percent of Total
Percent . of Total
$1,909,728 1,786,450 435,432 232,426 297,339 153,877 104,297 30,000 628,910
389,928 366,035
30.1 % 28.2
6.9
3.7
4.7
2.4
1.6
0.5
9.9
6.2
5.8
$1,984,312 2,057,524 481,407 236,591 507,589 148,449 90,905 26,211 470,213
188,608
429,822
30.0 % 31.1
7.3
3.6
7.7
2.2
1.4
0.3
7.1 .
2.8
6.5
$2,075,959 1,806,541 458,951 228,100 514,303 127,567 102,384 11,725 435,600
340,754
461,962
31.7% 27.5
7.0
3.6
7.8
1.9
1.6
0.1
6.6
5.2
7.0
$2,034,896 1,834,558 444,748 241,787 443,199 126,599 97,487 7,681 340,481
297,152
464,587
32.1 % 29.0
7.0
3.8
7.0
2.0
1.6
0.1
5.4
4.7 7.3
$6,334,422 100.0% $6,621,631 100.0% $6,563,846 100.0% $6,333,175 100.0%
12.6 %
EXPENDITURES BY FUNCTION
w c o
¦ Public Safety
General Government
Other
¦ Debt Service
? Streets and Sanitation
B Capital Outlay
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
179
Table 4A
CITY OF CHICAGO, ILLINOIS
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years Ended December 31, 2016 (Amounts are in Thousands of Dollars) Modified Accrual Basis of Accounting
2007 2008 2009 2010
Excess of revenues over
(under) expenditures $ (621,219) $ (1,254,546) $ (933,486) $ (949,132)
Other Financing
Sources (Uses):
Issuance of Debt,
including premium/discount $ 1,653,881 $ 795,432 $ 1,001,302 $ 1,434,390
Payment to Refunded Bond
Escrow Agent (951,419) (186,421) (213,435) (412,184)
Issuance of line of credit
Transfers in 332,016 293,448 2,253,459 647,407
Transfers out (331,016) (293,448) (2,253,459) (647,407)
Total other financing sources
(uses) 703,462 609,011 787,867 1,022,206
Net change in fund balances $ 82,243 $ (645,535) $ (145,619) $ 73,074
180
2015
$ (764,110) $ (749,609) $ (750,719) $ (1,121,915) (1,173,635) $ (472,579)
$ 1,212,326
(476,787)
572,211 (571,210)
736,540
758,557
(268,397)
178,750 (178,750)
490,160
$ 235,367
144,673 160,322 (160,322)
380,040
$ 1,021,812
(302,862)
652,586 (652,586)
718,950
1,093,939 $ 554,638
239,131 229,609 (228,984)
1,333,695
181
Table 5
CITY OF CHICAGO, ILLINOIS FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years Ended December 31, 2016 (Amounts Are in Thousands of Dollars) (Modified Accrual Basis of Accounting)
2007 2008 2009 2010
General Fund:
Reserved $ 39,673 $ 48,217 $ 52,048 $ 54,390
Unreserved . , ,4,634, ,. , ,-,226. . ,2,658 . 81,151
Total General Fund 44,307 48,443 54,706 135,541
General Fund Balance: (2)
Nonspendable $ - $ $ - $
Assigned
Unassigned - - - _
Total Fund Balance
Other Governmental Funds:
Reserved $ 1,191,674 $ 461,830 $ 1,418,399 $ 1,419,714
Unreserved, Reported in:
Special Revenue Funds 816,551 959,424 (409,796) (349,517)
Capital Projects Funds 906,603 372,063 321,251 534,013
Debt Service Funds (556,819) (551,137)
Permanent Fund (1) 191,391 660,333 422,319 138,724
Total All Other Governmental Funds 2,549,400 1,902,513 1,752,173 1,742,934
Total Governmental Funds $ 2,593,707 $ 1,950,956 $ 1,806,879 $ 1,878,475
Other Governmental Fund Balance: (2)
Restricted $ - $ - $ - $
Committed
Assigned
Unassigned - - - _
Total Fund Balance - - -
Total Governmental Funds $ - $ - J - $
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.
182
2015
24,055 143,549 167,929
335,533
20,885 177,000 33,417
231,302
24,788 108,424 33,845
167,057
24,498 65,223 51,557
141,278
23,828 98,377 93,027
215,232
23,730 92,115 153,737 269,582
$ 2,317,734 961,246 2,550 (1,761,077) 1,520,453
$ 1,855,986
$ 2,332,911 882,127
(1,852,973) 1,362,065
$ 1,593,367
$ 2,262,028 699,073
(1,901,567) 1,059,534
$ 1,226,591
$ 1,829,431 696,067
(1,843,440) 682,058
$ 823,336
1,878,692 677,821
(1,789,019) 767,494
982,726
1,755,914 709,769
(1,827,047) 638,636
908,218
183
Table 6
CITY OF CHICAGO, ILLINOIS GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Five Years Ended December 31, 2016 (Amounts are in Thousands of Dollars)
2012 (3) 2013 (3) 2014 (3) 2015 (3) 2016 (3)
Revenues:
Utility Tax $ 462,475
•• ••Sales Tax :..........•.::. 572,185
State income Tax 282,779
Other Taxes 694,383
Federal/State Grants 1,074
Other Revenues (1) 907,760
Total Revenues 2,920,656
$ 456,869 $ 473,496 $ 437,780 $ 434,409
583,681 620,299 665,793 674,515
308,899 278,031 336,959 413,673
749,742 803,961 935,658 1,080,423
1,871 2,335 1,845 1,869
929,429 998,028 1,088,600 1,077,723
3,030,491 3,176,150 3,466,635 3,682,612
Expenditures: Current:
Public Safety 1,956,152
General Government 864,556
Other (2) 258,501
Debt Service 2,160
Total Expenditures 3,081,369
1,953,572 2,0.20,072 2,061,540 2,195,201
885,268 929,918 1,064,470 993,682
267,852 270,899 298,817 263,503
2,382 10,369 8,275 20,822
3,109,074 3,231,258 3,433,102 3,473,208
Revenues Under Expenditures (160,713) (78,583) (55,108) 33,533 209,404
Other Financing Sources (Uses): Issuance of Debt, Net of Original
Discount/Including Premium 55,000
Transfers In 31,617
Transfers Out (26,965)
Total Other Financing Sources (Uses). 59,652
19,300
21,018 39,700 34,551 14,998
(10,583) (10,081) (12,760) (169,955)
10,435 29,619 41,091 (154,957)
Revenues and Other Financing Sources Over (Under) Expenditures and
Other Financing Uses (101,061)
Fund Balance - Beginning of Year 335,533
Change in Inventory (3,170)
Fund Balance - End of Year $ 231,302
(68,148) (25,489) 74,624 54,447
231,302 167,057 141,278 215,232
3,903 (290) (670) (97)
$ 167,057 $ 141,278 $ 215,232 $ 269,582
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, 2012-2016.
184
Table 7
CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Five Years Ended December 31, 2016 (Amounts are in Thousands of Dollars)
2012 (3) 2013 (3) 2014 (3) 2015(3) 2016 (3)
Revenues:
Property Tax $ 350,408 $ 316,958 $ 357,457 $ 360,132 $ 747,957
Utility Tax 63,883 68,458 74,641 102,593 101,260
State Income Tax 108,506 127,841 126,019 119,438
Other Taxes 607,135 589,422 624,676 626,821 791,824
Federal/State Grants 876,790 706,831 809,840 763,001 743,734
Other Revenues (1) 168,040 96,263 162,996 143,029 194,061
Total Revenues 2,174,762 1,905,773 2,155,629 2,115,014 2,578,836
Expenditures: Current:
Public Safety 119,807
General Government 941,985
Employee Pensions 458,951
Other (2) / 725,578
Capital Outlay 5,259
Debt Service 723
Total Expenditures 2,252,303
81,324 46,907 50,169 70,012
949,290 1,113,639 999,427 1,052,714
444,748 483,493 479,581 810,497
648,901 744,699 646,566 601,535
7,187 9,863 45,445 47,760
115 4,332 71 9,267
2,131,565 2,402,933 2,221,259 2,591,785
Revenues Under Expenditures (77,541)
Other Financing Sources (Uses): Issuance of Debt, Net of Original
Discount/Including Premium 70,541 125,063 17,768 28,657 30,746
Line of Credit - - - 75,994
Transfers In 76,968 91,022 184,033 32,257 123,941
Transfers Out (56,622) (59,631) (64,863) (70,322) (81,412)
Total Other Financing Sources (Uses)... 90,887 156,454 136,938 66,586 73,275
Revenues and Other Financing Sources Over (Under) Expenditures and
Other Financing Uses 13,346 (69,338) (110,366) (39,659) 60,326
Fund Balance - Beginning of Year 391,202 404,548 335,210 224,844 185,185
Fund Balance - End of Year $ 404,548 $ 335,210 $ 224,844 $ 185,185 $ 245,511
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, 2012-2016.
185
Table 8
CITY OF CHICAGO, ILLINOIS DEBT SERVICE FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Five Years Ended December 31, 2016 (Amounts are in Thousands of Dollars)
2012 (2) 2013(2) 2014 (2) 2015 (2) 2016 (2)
Revenues:
Property Tax $ 590,990
Utility Tax v.: 22,324
Sales Tax 22,105
Other Taxes 18,717
Other Revenues (1) 53,340
Total Revenues 707,476
$ 549,191 $ 572,384 $ 509,709 $ 546,106
22,324 =¦¦ 22,332 -22,324 22,323
40,261 38,500 37,441 39,042
17,400 12,569 11,749 33,168
11,888 36,443 22,460 23,920
641,064 682,228 603,683 664,559
Expenditures:
Debt Service 799,833
Total Expenditures 799,833
759,242 1,152,850 1,355,703 1,113,398 759,242 1,152,850 1,355,703 1,113,398
Revenues Over (Under) Expenditures... (92,357) (118,178) (470,622) (752,020) (448,839)
Other Financing Sources (Uses): Issuance of Debt, Net of Original
Discount/Including Premium 337,410
Payment to Refunded Bond Escrow Agent. (268,397)
Transfers In 47,322
Transfers Out (83,359)
Total Other Financing Sources (Uses)... 32,976
4 371,207 1,096,759 861,032
(300,600) - (496,150)
46,352 411,413 57,351 223,151
(89,157) (268,872) (124,488) (106,838)
(42,801) 213,148 1,029,622 481,195
Revenues and Other
Financing Sources
Over (Under) Expenditures and
Other Financing Uses (59,381)
Fund Balance - Beginning of Year 529,840
(160,979) (257,474) 277,602 32,356
470,459 309,480 52,006 329,608
$ 309,480 $ 52,006 $ 329,608 $ 361,964
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, 2012-2016.
186
Table 9
CITY OF CHICAGO, ILLINOIS CAPITAL PROJECT FUNDS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Five Years Ended December 31, 2016 (Amounts are in Thousands of Dollars)
2013 (2) 2014 (2) 2015 (2) 2016(2)
Revenues:
Other Revenues (1) $ 11,343
Total Revenues 11,343
$ 5,128 $ 36,472 $ 30,702 $ 18,063
5,128 36,472 30,702 18,063
Expenditures:
Capital Outlay 430,341
Total Expenditures 430,341
333,294 385,353 379,605 238,258 333,294 385,353 379,605 238,258
Revenues Under Expenditures (418,998)
Other Financing Sources (Uses): Issuance of Debt, Net of Original
Discount/Including Premium 295,606
Issuance Line of Credit
Transfers In 22,843
Transfers Out (11,804)
Total Other Financing Sources (Uses). 306,645
(328,166) (348,881) (348,903) (220,195)
110,300 630,575 62,360
144,673 - 50,000
1,930 17,440 105,450 13,700
(951) (308,770) (21,414) (15,045)
255,952 339,245 196,396 (1,345)
Revenues and Other Financing Sources Over (Under) Expenditures and
Other Financing Uses (112,353)
Fund Balance - Beginning of Year 599,411
(72,214) (9,636) (152,507) (221,540)
487,058 414,844 405,208 252,701
$ 414,844 $ 405,208 $ 252,701 $ 31,161
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, 2012-2016.
187
Table 10
CITY OF CHICAGO, ILLINOIS PROPERTY TAX LEVIES BY FUND (1) Five Years Ended December 31, 2016 (Amounts are in Thousands of Dollars)
Percent
... .,,„...: ,,,,,,,,,,„ ; , , 2012 ,2013 . Change
Note Redemption and Interest (2) $ 73,481 $ 74,231 1.02 %
Bond Redemption and Interest 411,489 411,807 0.08
Policemen's Annuity and Benefit (3) 143,865 138,146 (3.98)
Municipal Employees'Annuity and Benefit (3) 129,138 122,066 (5.48)
Firemen's Annuity and Benefit (3) 65,461 81,518 24.53
Laborers' and Retirement Board Employees'
Annuity and Benefit (3) 11,202 10,486 (6.39)
Total $ 834,636 $ 838,254 0.43 ,
NOTES:
See Table 11 - PROPERTY LEVIES, COLLECTIONS AND ESTIMATED ALLOWANCE FOR UNCOLLECTIBLE TAXES 2007 - 2016. 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.
188
Percent Percent Percent
2014 Change 2015 Change 2016 Change
97,061 30.76 % $ 97,708 0.67 % $ 80,359 (17.76) %
412,139 0.08 411,730 (0.10) 429,846 4.40
136,680 (1.06) 361,987 164.84 455,355 25.79
123,239 0.96 124,706 1.19 124,706
81,363 (0.19) 179,424 120.52 194,825 8.58
10,934 4.27 11,070 1.24 11,070
$ 861,416 2.76 $ 1,186,625 37.75 $ 1,296,161 (4) 9.23
189
Table 11
CITY OF CHICAGO, ILLINOIS
PROPERTY LEVIES, COLLECTIONS AND
ESTIMATED ALLOWANCE FOR UNCOLLECTIBLE TAXES
Last Ten Years Ended December 31, 2016
(Amounts are in Thousands of Dollars)
Tax Year(1)
Total Tax
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
$
749,351 $ 712,008
834,152
834,109
834,089
833,948
834,636
838,254
861,416 1,186,625 1,296,161 (4)
95.02 % 93.09 83.99 94.73 96.00 96.36 96.39 96.59 97.46 N/A
12,978 32,243 100,189 16,216 5,867 13,907 17,557 19,023
724,986 808,765 800,768 806,357 806,449 818,152 825,542 851,065 1,156,428
96.75 % 96.96 96.00 96.68 96.70 98.03 98.48 98.80 97.46 N/A
24,365 25,387 33,341 27,732 27,499 16,484 12,483 10,144 29,291 51,847
229 207 906 1,244,314
Total Net Outstanding Taxes Receivable $ 1,245,656
NOTES:
Taxes for each year become due and payable in the following year. For example, taxes for the 2016 tax levy become due and payable in 2017.
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.
190
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)
2015 EAV
Percentage of Total Rank EAV
2006 EAV
Percentage of Total Rank EAV
Willis Tower (4) $ 386,933
AON Building (3) 239,092
Blue Cross Blue Shield Tower (5) 238,631
Water Tower Place 215,481
300 N. LaSalle 196,095
Franklin Center (6) 194,504
Chase Plaza 193,365
Citadel Center 187,291
Prudential Plaza 186,795
Three First National Plaza 182,523
UBS Tower
Leo Burnett Building
Citicorp Plaza
Totals $ 2,220,710
1 2 3 4 5 6 7 8 9
10
0.55 %
0.34
0.34
0.30
0.28
0.27
0.27
0.26
0.26
0.26
493,803 356,510
219,995
283,387 238,266
279,532 196,044 189,061 201,662 205,854
3.13 % $ 2,664,114|101010|
3 5
4 9 10 8 7
0.71 % 0.51
0.32
0.41 0.34
0.40 0.28 0.27 0.29 0.30
3.83 %
NOTES:
Source: Cook County Treasurer's Office, Cook County Assessor's Office.
2016 information not available at time of publication.
AON Building formerly known as AMOCO Building.
Willis Tower formerly known as Sears Tower.
Blue Cross Blue Shield formerly known as Health Care service Corporation Blue Cross.
Franklin Center formerly known as AT&T Corporate Center 1.
191
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)r, --..Other (5)^.^: Total
18,521,873 2,006,898 12,157,149 688,868 33,374,788
18,937,256 1,768,927 12,239,086 678,196 33,623,465
19,339,574 1,602,768 12,359,537 693,239 33,995,118
18,311,981 1,812,850 10,720,244 592,364 31,437,439
18,074,177 1,416,863 10,467,682 606,941 30,565,663
17,932,671 1,116,175 10,456,103 588,672 30,093,621
15,529,678 1,208,620 10,233,051 498,310 27,469,659
15,410,659 1,236,401 10,172,186 494,714 27,313,960
15,390,835 1,298,776 10,124,569 512,390 27,326,570
17,296,324 1,532,714 11,269,605 592,903 30,691,546
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.
2015 information not available at time of publication.
2016 information not available at time of publication.
192
State Equalization Factor (6)
2.7080 2.8439 2.9786 3.3701 3.3000 2.9706 2.8056 2.6621 2.7253 2.6685
Total Equalized Assessed Value (7)
69,517,264 73,645,316 80,977,543 84,685,258 82,087,170 75,122,914 65,250,387 62,363,876 64,908,057 70,963,289
Total Direct
Tax
Rate
1.062 1.044 1.030 0.986 1.020 1.110 1.279 1.344 1.327 1.672
Total Estimated Fair Market Value (8)
329,770,733 320,503,503 310,888,609 280,288,730 231,986,397 222,856,064 206,915,723 236,695,475 255,639,792 N/A (9)
Ratio of Total Equalized Assessed to Total Estimated Fair Market Value (9)
21.08 22.98 26.05 30.21 35.38 33.71 31.53 26.35 25.39 N/A (9)
EQUALIZED ASSESSED VALUE
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
193
Table 14
CITY OF CHICAGO, ILLINOIS
PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS Per $100 OF EQUALIZED ASSESSED VALUATION Last Ten Years
Tax .-year=-
Chicago
School Building and Improvement
—,-F-und—=-
Chicago School Finance ¦ Authority-
Board of
Education
Community College District
^;No-508=
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (1)
NOTE:
1.062 1.044 1.030 0.986 1.016 1.110 1.279 1.344 1.327 1.672
0.117 0.112 1.116 0.119 0.146 0.152 0.146 0.134
0.118 0.091
2.697 2.583 2.472 2.366 2.581 2.875 3.422 3.671 3.660 3.455
0.205 0.159 0.156 0.150 0.151 0.165 0.190 0.199 0.193 0.177
(1) 2016 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
Total City Tax Extension (2)
Bond, Note Redemption and Interest
Chicago Public Library Bond, Note Redemption and Interest
Policemen's Annuity and Benefit
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (1)
719,230 749,351 834,152 834,109 834,089 833,948 834,636 838,254 861,416 1,186,625
0.519706 0.550055 0.508488 0.478955 0.494109 0.542475 0.623916 0.653302 0.659187 0.602426
0.049968 0.039514 0.094354 0.091851 0.094665 0.103443 0.119254 0.125978 0.125228 0.115391
0.194953 0.191548 0.172426 0.167552 0.170734 0.191381 0.220459 0.221494 0.210554 0.510054
NOTES:
2016 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.
194
Metropolitan Forest
Chicago Water Preserve
Park Reclamation District of Cook
District District Cook County County Total
$ 0.379 $ 0.284 $ 0.057 $ 0.500 $ 5.302
0.355 0.263 0.053 0.446 4.994
0.323 ! 0.252 0.051 0.415 4.816
0.309 0.261 0.049 0.394 4.627
0.319 0.274 0.051 0.423 5.931
0.346 0.320 0.058 0.462 5.455
0.395 0.370 0.063 0.531 6.396
0.420 0.417 0.069 0.560 6.832
0.415 0.430 0.069 0.568 6.808
0.382 0.426 0.069 0.552 6.867
Laborers' and
Municipal Retirement Board
Employees' Firemen's Employees'
Annuity and Annuity and Annuity and
Benefit Benefit Benefit Total
$ 0.197399 $ 0.099974 $ - $ 1.062
0.174302 0.088581 - 1.044
0.162182 0.080787 0.011763 1.030
0.153704 0.078184 0.015754 0.986
0.161435 0.078352 0.016705 1.016
0.169036 0.088014 0.015651 1.110
0.197892 0.100313 0.017166 1.279
0.195713 0.130700 0.016813 1.344
0.189848 0.125339 0.016844 1.327
0.175716 0.252815 0.015598 1.672
195
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
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Population (1)
2,896,016 2,896,016 2,896,016 2,695,598 2,695,598 2,695,598 2,695,598 2,695,598 2,695,598 2,695,598
Equalized Assessed Value (2)
73,651,158 80,977,543 84,685,258 82,087,170 75,122,914 65,250,387 62,363,876 64,908,057 70,963,289 N/A (6)
G. O. Bonds
5,759,573 5,687,447 6,051,947 6,536,596 6,997,975 7,244,917 7,159,396 7,798,956 8,562,720 8,551,473
Other G. O. Debt
77,998 259,097 230,263 268,526 198,132 166,460 270,188
239,131 124,263
General Certificates Obligation and Other
458,654 362,140 439,670 574,755 554,015 528,305 501,490 473,290 434,525 392,440
Unamortized Premiums (3)
129,002 87,809 91,787
NOTES:
Source: U.S. Census Bureau.
Source: Cook County Clerk's Office.
Beginning in 2014, the City will present Unamortized Premiums and Capital Appreciation Bonds Accreted Interest amounts applicable to General Obligation Bonds, Commercial Paper and Other General Obligation Debt.
Gross Bonded Debt includes bonds, and notes obligations that are noncurrent.
Amounts are in dollars.
N/A means not available at time of publication.
196
Accreted Interest (3)
290,179 297,645 307,236
Total Gross -Net of Premiums
& Accretions-Bonded Debt (4)
6,296,225 6,308,684 6,721,880 7,379,877 7,750,122 7,939,682 7,931,074 8,691,427 9,621,830 9,467,199
Less Reserve for
Debt Service
70,543 10,080 50,431 58,822 249,355 105,582 16,298 99,725 232,442 285,375
Net Bonded Debt
6,225,682 6,298,604 6,671,449 7,321,055 7,500,767 7,834,100 7,914,776 8,591,702 9,389,388 9,181,824
Ratio of Net Bonded Debt to Equalized Assessed Value
8.45
7.78
7.88
8.92
9.98 12.01 12.69 13.24 13.23
N/A (6)
Net Bonded Debt Per Capita (5)
2,149.74 2,174.92 2,303.66 2,715.93 2,782.60 2,906.26 2,936.19 3,187.31 3,483.23 3,406.23
197
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,.
Interest and Other Financing Charges,(3)
General Obligation Debt Service Expenditures
Governmental .-Expenditures
Ratio of Debt Service Expenditures to Governmental ^Expenditures. (.1.)
$ 143,575 $ 267,698
429,066 302,105
2009 380,946 298,057
336,378 319,423
129,303 369,880
305,879 475,906
218,918 399,794
446,749 442,705
326,556 501,721
2016 574,949 424,489
$ 411,273 $ 6,098,521 6.7 %
731,171 6,839,389 10.7
679,003 6,269,395 10.8
655,801 6,334,422 10.4
499,183 6,621,207 7.5
781,785 6,563,846 11.9
618,712 6,333,175 9.8
889,454 7,172,394 12.4
828,277 7,389,669 11.2
999,438 7,416,649 13.5
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 was (in thousands) $6,891 in 2007 and approximately $35,170 since 2008.
This includes G. 0. Bonds, G. 0. Notes, G. 0. Certificates, G. 0. Commercial Paper (CP), G. 0. Line of Credit, (LOC), Other G. O. Debt, and City Colleges of Chicago Bonds. For FY 2016 the principal payments for LOC were $452.0 million.
For FY 2016, interest payments exclude Michael Reese Loan.
198
Table 18
CITY OF CHICAGO, ILLINOIS
COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT December 31, 2016
(Amounts are in Thousands of Dollars)
City of Chicago Direct Debt
Net Direct Long-term Debt(1)
Percentage of
Overlapping Bonded Debt (2)
Net Debt Applicable
City of Chicago G. O. Bonds $ 8,943,914
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
$ 8,943,914 6,778,084 863,580 241,830 3,213,142 159,440
2,926,998 14,183,074
$ 23,126,988
100.00% 100.00 100.00 100.00
51.98
53.47
54.46
$ 8,943,914 6,778,084 863,580. 241,830 1,670,215 85,253
1,594,027 11,232,989
$ 20,176,903
NOTES:
Source: Amount of Net Direct Debt was obtained from each of the respective taxing bodies.
Cook County Clerk's Office.
Table 18 includes the governmental entities that operate as separate, independent units of government and have the authority to issue bonds and levy taxes on real property within the City of Chicago. The net direct long-term debt amount provided by each entity is comprised solely of the tax-levy supported obligations. Table 18 does not include non-property tax levy backed debt issued by the listed entities.
199
Table 19
CITY OF CHICAGO, ILLINOIS DEBT STATISTICS Last Ten Years
(Amounts are in Thousands of Dollars Except Where Noted)
2007 2008 2009 2010
Direct Debt $ 5,805,921 $ 6,126,295 $ 6,866,270 $ 7,328,452
Overlapping Debt 7,904,184 7,529,359 8,539,070 9,158,243
Total Debt $ 13,710,105 $ 13,655,654 $ 15,405,340 $ 16,486,695
Equalized
Assessed Valuation (1) $ 73,645,316 $ 80,977,543 $ 84,685,258 $ 82,087,170
Direct Debt Burden (2) 8.35% 8.32% 8.48% 8.65%
Total Debt Burden (2) 19.72% 18.54% 19.02% 19.47%
Estimated Fair Market
Value (FMV) (5) $ 320,503,503 $ 310,888,609 $ 280,288,730 $ 231,986,397
% of Direct Debt to FMV 1.81% 1.97% 2.45% 3.16%
% of Total Direct Debt to FMV 4.28% 4.39% 5.50% 7.11%
Population (3) 2,896,016 2,896,016 2,896,016 2,695,598
Direct Debt Per Capita (4) $ 2,004.80 $ 2,115.42 $ 2,370.94 $ 2,718.67
Total Debt Per Capita (4) 4,734.13 4,715.32 5,319.49 6,116.15
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 2006 is $69,517,264.
Source: U.S. Census Bureau.
Amounts are in dollars.
Source: The Civic Federation.
N/A means not available at time of publication.
200
2015
9,877,084
10,384,421
10,338,490
10,397,181
11,232,989
$ 7,628,222 $ 7,939,682 $ 7,670,298 $ 8,339,626 $ 9,041,892 $ 8,943,914
10,113,429
$ 17,505,306 $ 18,324,103 $ 18,008,788 $ 18,453,055 $ 19,439,073 $ 20,176,903
75,122,914 9.29% 21.33%
65,250,387 10.57% 24.39%
62,363,876 11.76% 27.60%
64,908,057 13.37% 29.59%
70,963,289 13.93% 29.95%
N/A (6) 12.60% 28.43%
$ 222,856,064 3.42% 7.85%
206,915,723 3.84% 8.86%
236,695,475 3.24% 7.61%
255,639,792 3.26% 7.22%
N/A (6) N/A (6) N/A (6)
N/A (6) N/A (6) N/A (6)
2,695,598 2,829.88 6,494.03
2,695,598 2,945.43 6,797.79
2,695,598 2,845.49 6,680.81
2,695,598 3,093.79 6,845.63
2,695,598 3,354.32 7,211.41
2,695,598 3,317.97 7,485.13
201
Table 20
CITY OF CHICAGO, ILLINOIS
REVENUE BOND COVERAGE
Last Ten Years Ended December 31, 2016
(Amounts are in Thousands of Dollars Except Where Noted)
Proprietary Funds
Net Revenue
Other Available Debt Service Requirements
Gross Operating Available for Debt Year " : "Revenues (1) Expense'(2) Funds (3)' Service (4)" "' Principal Interest' Total Coverage
$ 1,550,299 $ 856,550 $ 31,554 $ 725,303 $168,712 $416,810 $ 585,522 1.24
1,602,668 913,499 47,067 736,236 219,482 438,553 658,035 1.12
1,516,939 887,676 41,021 670,284 216,841 369,379 586,220 1.14
1,768,225 911,935 10,370 866,660 220,124 379,185 599,309 1.45
1,767,722 937,233 61,202 891,691 166,825 306,916 473,741 1.88
1,935,020 967,517 83,050 1,050,553 209,298 479,277 688,575 1.53
2,020,371 969,551 211,531 1,262,351 277,225 494,226 771,451 1.64
* 2,306,308 1,042,605 280,251 1,543,954 290,340 569,475 859,815 1.80
* 2,391,485 1,054,949 344,579 1,681,115 336,960 570,523 907,483 1.85
* 2,531,472 1,112,868 555,170 1,973,774 417,727 579,779 997,506 1.98
* Beginning in 2014, revenues are net of provision for doubtful accounts.
Tax Increment Financing Funds
Net Revenue
Available Debt Service Requirements
Gross Operating for Debt
Year Revenues (1) Expense (2) Debt (4) Principal Interest Total Coverage
$ 509,238 $ 238,757 $ 270,481 $ 91,378 $ 48,514 $ 139,892 1.93
557,596 296,469 261,127 176,221 58,292 234,513 1.11
.2009 495,588 185,947 309,641 37,000 28,740 65,740 4.7.1.
474,390 229,266 245,124 36,535 28,431 64,966 3.77
544,415 266,916 277,499 44,290 31,796 76,086 3.65
487,495 361,783 125,712 43,025 29,136 72,161 1.74
427,287 334,414 92,873 51,194 27,721 78,915 1.18
410,018 567,079 (157,061) 69,912 30,963 100,875 (1.56)
366,264 349,066 17,198 37,070 24,089 61,159 0.28
493,399 376,482 116,917 58,090 18,561 76,651 1.53
202
Table 20 - Concluded
CITY OF CHICAGO, ILLINOIS
REVENUE BOND COVERAGE
Last Ten Years Ended December 31, 2016
(Amounts are in Thousands of Dollars Except Where Noted)
Sales Tax Funds
Net Revenue Available for Debt Service (4)
Year
$ 570,927
548,571
503,952
527,004
563,156
594,290
623,942
658,798
703,234
713,557
Debt Service Requirements
Principal
8,550 9,135 425 445 465 11,300 11,875 12,485 13,125 13,795
Interest
17,781 16,385 13,630 6,300 18,481 29,509 27,515 27,292 25,678 25,610
Coverage
21.68 21.50 35.86 78.13 29.72 14.56 15.84 16.56 18.12 18.11
Motor Fuel Tax Funds
Net Revenue Available for Debt Service (4)
Year
2007 $ 61,467
57,472
55,625
55,209
52,567
2012 53,421
52,405
53,772
49,048
51,626
Debt Service Requirements
Principal
4,480 1,210 5,000 5,270 5,550 5,850 6,165 5,915 5,045 4,085
Interest
7,835 9,976 10,618 10,332 9,996 9,840 9,453 6,642 9,356 10,207
Coverage
4.99
5.14
3.56
3.54
3.38
3.40
3.36
4.28
3.41.
3.61
NOTES:
Total revenues include nonoperating revenues except for grants.
Total operating expenses excluding depreciation and amortization.
Other Available Funds is calculated only for the Water and Sewer funds, and is calculated as net current unrestricted assets as of December 31 of the prior year.
Net Revenue Available for Debt Service will not tie to the revenues from Exhibit 4 since not all revenue is available for debt service.
203
Table 21
CITY OF CHICAGO, ILLINOIS
RATIO OF OUTSTANDING DEBT BY TYPE
Last Ten Years Ended December 31, 2016
(Amounts are in Thousands of Dollars Except Where Noted)
Governmental Funds
Net General Obligation Debt
Tax Increment Allocation Bonds and Notes
Motor Fuel
and Installment
Sales Tax Purchase
Revenue Agreement
Capital Leases
Water Revenue Bonds
.Chicago O'Hare International
Airport Customer Facility Charge Revenue Bonds
Chicago O'Hare International Airport Other Debt
2007 20.08 2009 2010 2011 2012 2013 2014 2015 2016
$ 6,296,225 6,308,684 6,721,880 7,379,877 7,750,122 7,939,682 7,931,074 8,272,246 9,236,376 9,068,176
285,363 204,811 179,871 156,881 125,201 106,241 80,127 69,995 60,660 33,520
$ 499,555 552,345 559,417 553,702 770,312 753,162 735,122 725,395 735,882 748,748
7,500 5,500 .3,500 1,200
245,685 207,065 169,282 177,011 166,787 163,012 171,673 116,858
1,195,803 1,464,838 1,424,319 1,711,615 1,677,851 1,988,655 1,954,020 2,381,770 2,391,395 2,468,397
248,750 248,750 248,750 248,750
NOTES:
See Table 13 for Estimated Fair Market Value
Amounts in Dollars
2016 information not available at time of publication.
Proprietary Fund Revenue Bonds
Chicago O'Hare International Airport Revenue Bonds
Chicago O'Hare International
Airport Passenger Facility Charge Revenue Bonds
Chicago Midway Airport
Revenue Bonds
Wastewater Transmission Revenue Bonds
Total Primary Government
Ratio of Bonded Debt to Estimated Fair Market Value (1)
Per Capita (2)
$ 4,562,956 $ 766,255 $ 1,254,664 $ 754,908 $ 15,868,914 4.81 $ 5,479.57
4,912,635 725,675 1,239,404 902,904 16,523,861 5.16 5,705.72
5,092,010 709,200 1,246,190 878,875 16,984,544 5.46 5,864.80
5,647,115 816,110 1,465,495 1,100,800 19,009,806 6.78 7,052.17
6,481,960 797,769 1,439,185 1,084,224 20,293,411 8.75 7,528.35
6,270,770 750,706 1,383,215 1,334,918 20,690,361 9.28 7,675.61
6,563,780 683,780 1,470,343 1,333,984 21,172,653 10.23 7,854.53
6,406,710 682,271 1,506,325 1,602,175 22,012,495 9.30 8,166.09
6,586,490 631,245 1,506,325 1,686,178 23,083,301 9.03 8,563.33
6,404,030 595,630 1,781,605 1,692,820 23,053,774 N/A (3) 8,552.38
205
This Page Intentionally Left Blank
206
Table 22
CITY OF CHICAGO, ILLINOIS
DEBT SERVICE REQUIREMENTS FOR GENERAL LONG-TERM DEBT (1) December 31, 2016
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
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044
272,291,947 294,921,972 313,378,700 329,703,918 333,877,240 338,903,400 331,703,319 327,287,012 317,748,971 332,356,163 346,659,720 356,554,806 376,054,515 391,392,520 502,118,596 458,108,762 483,916,194 512,382,377 357,812,607 305,366,559 285,042,925 278,021,380 290,235,000 290,555,000 307,605,000 101,745,000 108,170,000
512,360,661 499,915,272 485,973,423 473,191,811 457,640,076 447,500,095 432,072,096 416,549,104 401,837,691 387,527,887 365,813,325 356,005,907 336,431,047 320,443,003 298,360,362 253,722,968 227,922,494 199,452,122 166,876,415 147,226,958 129,750,667 112,997,953 66,214,977 48,415,307 31,341,080 13,254,033 6,829,854
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 24,327,530 25,253,712 26,759,422 42,955,951 45,359,513 47,932,886 50,648,085 38,598,555 40,726,747 42,967,303 4,962,113 5,433,199 5,615,766 4,131,483
35,298,281 34,408,706 33,468,881 32,467,744 31,447,860 30,330,775 29,157,835 27,922,600 26,622,348 25,253,509 26,149,984 22,462,317 32,383,180 30,194,677 31,091,840 30,346,760 29,528,434 15,879,401 13,766,832 11,498,137 9,104,421 6,578,922 4,711,261 2,743,590 670,747 505,509 324,583 137,578
5,595,000 5,710,000 6,020,000 4,135,000 4,375,000 7,685,000
1,467,376 $ 1,232,911
959,730
706,375
493,625
192,125
296,136,947 319,781,972 339,733,354 355,279,210 360,819,766 370,325,519 356,743,201 353,688,695 345,592,418 361,717,322 375,368,145 389,078,522 398,733,797 416,431,868 526,446,126 483,362,474 510,675,616 555,338,328 403,172,120 353,299,445 335,691,010 316,619,935 330,961,747 333,522,303 312,567,113 107,178,199 113,785,766 4,131,483
549,126,318 535,556,889 520,402,034 506,365,930 489,581,561 478,022,995 461,229,931 444,471,704 428,460,039 412,781,396 391,963,309 378,468,224 368,814,227 350,637,680 329,452,202 284,069,728 257,450,928 215,331,523 180,643,247 158,725,095 138,855,088 119,576,875 70,926,238 51,158,897 32,011,827 13,759,542 7,154,437 137,578
$ 8,943,913,603 $ 7,595,626,588 $ 748,748,798 $ 574,456,712 $ 33,520,000 $ 5,052,142 $ 9,726,182,401 $ 8,175,135,442
NOTE:
(1) The amounts listed above for each year include amounts payable January 1 of the following year. Bonds maturing and interest payable January 1,2017, have been excluded from this schedule because funds for their payment have been provided in the debt service funds.
207
Table 23
CITY OF CHICAGO, ILLINOIS
DEBT SERVICE REQUIREMENTS FOR GENERAL OBLIGATION DEBT (1) December 31, 2016
Year Ended Dec. 31,
General Obligation Bonds
Interest
.$ , 486,352,-596, 477,158,047 466,738,898 457,541,027 445,894,500 439,348,929 427,446,998 414,373,887 400,973,504 387,015,975 365,693,171 355,921,960 336,385,453 320,443,003 298,360,362 253,722,968 227,922,494 199,452,122 166,876,415 147,226,958 129,750,667 112,997,953 66,214,977 48,415,307 31,341,080 13,254,033 6,829,854
Alternative Revenue Bonds (2) Principal Interest
•»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
,$ 11,245,000 11,350,000 9,100,000 9,100,000 9,100,000 9,100,000 9,100,000 9,100,000
$ 8,440,363,603 $ 7,483,653,138 $ 426,355,000 $
NOTE:
The amounts listed above for each year include amounts payable January 1 of the following year. Bonds maturing and interest payable January 1,2017, have been excluded from this schedule because funds for their payment have been provided in the debt service funds.
Alternative Revenue Bonds include General Obligation Bonds (Emergency Telephone System), Series 1999 and Series 2004, and General Obligation Bonds (Modem Schools Across Chicago Program) Series 2007A-K and 201OA/B.
208
Totals
Principal Interest
$ 272,291,947 $ 294,921,972 313,378,700 329,703,918 333,877,240 338,903,400 331,703,319 327,287,012 317,748,971 332,356,163 346,659,720 356,554,806 376,054,515 391,392,520 502,118,596 458,108,762 483,916,194 512,382,377 357,812,607 305,366,559 285,042,925 278,021,380 290,235,000 290,555,000 307,605,000 101,745,000 108,170,000
512,360,661 $ 499,915,272 485,973,423 473,191,811 457,640,076 447,500,095 432,072,096 416,549,104 401,837,691 387,527,887 365,813,325 356,005,907 336,431,047 320,443,003 298,360,362 253,722,968 227,922,494 199,452,122 166,876,415 147,226,958 129,750,667 112,997,953 66,214,977 48,415,307 31,341,080 13,254,033 6,829,854
784,652,608 794,837,244 799,352,123 802,895,729 791,517,316 786,403,495 763,775,415 743,836,116 719,586,662 719,884,050 712,473,045 712,560,713 712,485,562 711,835,523 800,478,958 711,831,730 711,838,688 711,834,499 524,689,022 452,593,517 414,793,592 391,019,333 356,449,977 338,970,307 338,946,080 114,999,033 114,999,854
$ 8,943,913,603 $ 7,595,626,588 $ 16,539,540,191
209
Table 24
CITY OF CHICAGO, ILLINOIS
DEBT SERVICE REQUIREMENTS FOR PROPRIETARY FUNDS (1) December 31, 2016
Year Ended December 31,
2017
2018
2019
2025
2026
2027
2028
2032
2033
2034 ,
2035
2039
2040
2041
2042
2043
2044
2045
2046
Principal
79,305,350 84,017,576 87,835,117 91,783,424 93,703,128 97,942,745 101,811,664 106,877,059 111,781,339 116,468,271 122,196,002 115,797,746 120,593,587 122,358,607 93,907,892 86,479,571. 89,748,157 93,637,500 92,267,620 92,689,247 85,650,000 89,620,000 77,395,000 81,035,000 43,530,000 45,705,000 21,590,000 22,670,000
Interest
130,090,407 127,950,422 119,167,722 115,518,961 106,055,759 101,719,043 97,150,501 92,331,917 87,419,893 82,079,101 76,382,685 70,338,458 64,750,713 58,868,213 52,953,276 48,316,345 44,073,680 39,678,535 35,101,437 30,424,963 25,609,596 20,988,587 15,946,126 11,415,897 6,674,750 4,498,250 2,213,000 1,133,500
Principal
49,325,130 53,827,914 56,332,223 52,004,720 51,823,076 53,753,996 55,940,857 58,220,121 70,967,233 55,189,895 57,268,704 59,393,412 66,691,716 69,977,250 72,877,116 76,223,868 78,245,875 81,629,647 84,611,838 85,330,000 80,485,000 84,585,000 77,130,000 59,225,000 31,955,000 33,525,000 17,685,000 18,595,000
Interest
82,666,580 80,447,515 77,980,386 82,736,330 82,960,422 81,080,181 78,941,711 76,700,670 64,056,345 79,751,296 77,675,800 75,459,122 52,980,670 49,588,664 45,974,683 42,121,221 38,066,902 33,824,826 29,379,029 24,678,771 19,954,343 15,245,506 10,645,474 6,716,893 4,214,125 2,627,125 1,371,875 464,875
$ 1,692,819,591 $ 1,318,311,340
NOTE:
1) For variable rate debt, interest has been calculated at the rate in effect or effective rate of a Swap Agreement, if applicable, as of December 31, 2016. Amounts above exclude Commercial Paper issues as the timing of payments is not certain.
210
Interest
Chicago-O'Hare International Airport and Chicago Midway International Airport Bonds
Principal
Year Ended December 31,
424,587,936 409,121,475 393,909,940 379,372,084 364,997,387 350,140,199 334,985,349 319,087,817 302,434,467 285,099,710 267,152,486 248,412,381 228,634,109 207,779,137 186,144,327 164,206,084 142,503,967 120,692,646 102,199,449 85,279,387 67,512,845 48,851,007 32,294,974 20,575,233 13,716,853 9,511,624 5,607,159 3,014,750 1,021,125
$ 303,620,000 $ 418,037,929 $
324,120,000 326,585,000 312,355,000 279,030,000 296,620,000 295,585,000 307,970,000 326,465,000 337,465,000 354,195,000 370,770,000 383,380,000 403,685,000 422,890,000 439,115,000 465,020,000 480,280,000 520,125,000 284,175,000 303,200,000 318,725,000 334,770,000 240,155,000 195,945,000 108,575,000 114,015,000 101,435,000 38,900,000 40,845,000
432,250,480 $ 630,794,916 $ 1,063,045,396 2017
461,965,490 632,985,873 1,094,951,363 2018
470,752,340 606,269,583 1,077,021,923 2019
456,143,144 592,165,231 1,048,308,375 2020
424,556,204 568,388,265 992,944,469 2021
448,316,741 547,796,611 996,113,352 2022
453,337,521 526,232,411 979,569,932 2023
473,067,180 504,017,936 977,085,116 2024
509,213,572 470,564,055 979,777,627 2025
509,123,166 464,264,864 973,388,030 2026
533,659,706 439,158,195 972,817,901 2027
545,961,158 412,950,066 958,911,224 2028
570,665,303 366,143,764 936,809,067 2029
596,020,857 337,090,986 933,111,843 2030
589,675,008 306,707,096 896,382,104 2031
601,818,439 276,581,893 878,400,332 2032
633,014,032 246,346,666 879,360,698 2033
655,547,147 216,007,328 871,554,475 2034
697,004,458 185,173,112 882,177,570 2035
462,194,247 157,303,183 619,497,430 2036
469,335,000 130,843,326 600,178,326 2037
492,930,000 103,746,938 596,676,938 2038
489,295,000 75,442,607 564,737,607 2039
380,415,000 50,427,764 430,842,764 2040
271,430,000 31,464,108 302,894,108 2041
187,805,000 20,842,228 208,647,228 2042
153,290,000 13,096,499 166,386,499 2043
142,700,000 7,205,534 149,905,534 2044
38,900,000 3,014,750 41,914,750 2045
40,845,000 1,021,125 41,866,125 2046
$ 9,030,015,000 $ 5,936,883,836 $ 13,191,231,193 $ 8,924,046,913 $ 22,115,278,106
211
Table 25
CITY OF CHICAGO, ILLINOIS LONG-TERM DEBT December 31, 2016
Long-term debt is comprised of the following issues at December 31,2016 (dollars in thousands):
General'Long:term'Debt: " " i r~' ' '"-"—¦ «--K—^T^--«=^.™a^ General Obligation Debt:
General Obligation Bonds (1):
Refunding Series of 1993 B - 4.25% to 5.125% $
Project and Refunding Series 1995 A-2 - 5.0% to 6.25%
Emergency Telephone System Refunding Series 1999 - 4.5% to 5.5%
City Colleges of Chicago Capital Improvement Project Series 1999 - 6.0%
Project Series 2000 A - 4.85% to 6.75%
Project and Refunding Series 2001 A - 4.0% to 5.65%
Project and Refunding Series 2002 A - 4.0% to 5.65%
Neighborhoods Alive 21 Program Series 2002 B - 5.0% to 5.5%
Neighborhoods Alive 21 Program Series 2003 - 2.0% to 5.25%
Project and Refunding Series 2003 A - 4.625% to 5.25%
Project and Refunding Series 2003 B - 5.0% to 5.5%
Project Series 2003 C and D - 2.0% to 5.25%
Emergency Telephone System Series 2004 - 3.0% to 6.9%
Project and Refunding Series 2004 - 1.92% to 5.5%
Refunding Series 2005 A - 2.5% to 5.0%
Project and Refunding Series 2005 B and C - 3.5% to 5.0%
Project and Refunding Series 2005 D - 5.5%
Direct Access Bonds, Series 2005 - 2.876% to 4.5%
Direct Access Bonds, Series 2006 - 3.5% to 4.4%
Project and Refunding Series 2006 A and B - 3.5% to 5.375%
Project and Refunding Series 2007 A and B - 3.75% to 5.462%
City Colleges of Chicago Capital Improvement Project Series 2007 - 4.0% to 5.0%
Project and Refunding Series 2007 C and D - 4.0% to 5.44%
Project and Refunding Series 2007 E through G - 5.5%
Project and Refunding Series 2008 A and B - 3.0% to 5.765%
Project and Refunding Series 2008 C through E -1.0% to 6.05%
Project and Refunding Series 2009 A through D - 4.0% to 6.257%
Project Series 2010 B - 7.517%
Project Series 2010 C-1 - 7.781%
Project Series 2011 A and B - 4.625% to 6.034%
Project Series 2012 A and C - 4.0% to 5.432%
Project and Refunding Series 2014 A and B - 4.0% to 6.314%
_ -General Obligation. Series 2015 A and B - 5.0% to 7.75%
$ 12,159,940 $ 8,551,473
Refunding Series 2015C - 5.0% _
Total General Obligation Bonds
* Secured by alternate revenues.
Table 25 - Continued CITY OF CHICAGO, ILLINOIS LONG-TERM DEBT December 31, 2016
Outstanding at
Original December 31,
Principal 2016
Line of Credit:
Line of Credit-Variable Rate (5.625% at December 31, 2016) $ 124,263 $ 124,263
Total Line of Credit 124,263 124,263
Total General Obligation Bonds and Notes 12,284,203 8,675,736
General Obligation Certificates and Other Obligations (1):
" Building Acquisition Certificates (Limited Tax) Series 1997 - 4.4% to 5.4% $ 28,800 $ 4,395
Modern Schools Across Chicago Program - Series 2007 A through K - 3.6% to 5.0% 356,005 197,675
Modern Schools Across Chicago Program - Series 2010 A and B - 3.0% to 5.364% 150,115 117,570
" MRL Financing LLC Promissory Note - 5.0% to 7.5% 91,000 72,800
Total General Obligation Certificates and Other Obligations 625,920 392,440
Total General Obligation Debt 12,910,123 9,068,176
Tax Increment Allocation Bonds and Notes (1):
Goose Island Redevelopment Tax Increment - Series 2000 - 7.45% 16,800 6,455
Pilsen Redevelopment Project - Series 2014 A and B - 0.95% to 5.0% 33,410 27,065
Total Tax Increment Allocation Bonds and Notes 50,210 33,520
Motor Fuel Tax and Sales Tax Revenue Bonds (1):
Motor Fuel Tax Revenue Bonds - Series 2008 A and B - 4.0% to 5.0% 66,635 62,195
Motor Fuel Tax Revenue Bonds - Series 2013 - 2.0% to 5.0% 105,895 95,290
Motor Fuel Tax Revenue Bonds - Riverwalk TIFIA Loan - 3.33% 76,571 76,571
Sales Tax Revenue Bonds - Series 2002 - 4.23% 116,595 110,580
Sales Tax Revenue Refunding Bonds - Series 2005 - 3.25% to 5.0% 142,825 80,315
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 832,318 748,748
Total General Long-term Debt $ 13,792,651 $ 9,850,444
Secured by alternate revenues.
** General Obligation Certificates and other obligations without property tax levy.
NOTE: (1) The balance outstanding at December 31, 2016 listed above for each bond series excluded amounts payable
January 1,2017, if applicable.
Proprietary Fund Revenue Bonds: Water Revenue Bonds:
Series 1997-Sr Lien 3.9% to 5.25% $ 277,911 $ 5,089
Series 2000 - 2nd Lien - 5.0% 100,000 100,000
Series 2000 - Sr Lien 4.375% to 5.875% 156,819 9,871
Series 2001 - 2nd Lien 3.0% to 5.75% 353,905 80,745
Series 2004 - 2nd Lien - 2.0% to 5.0% 500,000 344,575
Series 2006A - 2nd Lien - 4.5% to 5.0% 215,400 174,605
Series 2008 - 2nd Lien - 4.0% to 5.25% 549,915 436,215
213
Table 25 - Continued CITY OF CHICAGO, ILLINOIS LONG-TERM DEBT December 31, 2016
Outstanding at Original December 31,
Principal 2016
'¦ ProprietaryFund Revenue'Bonds^'Continued - iT";T_" ••r-'"' ••• • Water Revenue Bonds - Concluded:
Series2010-2nd Lien-2.0%to6.742% 313,580 300,355
Series 2012 - 2nd Lien - 4.0% to 5.0% 399,445 391,745
Series2014-2nd Lien-3.0%to5.0% 367,925 357,610
Series2016-2nd Lien-1.05%to5.0% 81,715 75,990
Illinois Environmental Protection Agency Loan - 2.905% 3,605 1,328
Illinois Environmental Protection Agency Loan - 2.57% 2,642 1,400
Illinois Environmental Protection Agency Loan -1.25% 6,000 4,637
Illinois Environmental Protection Agency Loan - 0.00% 9,077 6,839
Illinois Environmental Protection Agency Loan -1.25% 1,528 1,280
Illinois Environmental Protection Agency Loan -1.25% 1,502 1,259
Illinois Environmental Protection Agency Loan -1.25% 6,092 5,105
Illinois Environmental Protection Agency Loan - 2.29% 6,542 5,878
Illinois Environmental Protection Agency Loan -1.93% 39,421 36,187
Illinois Environmental Protection Agency Loan -1.93% 15,000 13,796
Illinois Environmental Protection Agency Loan -1.93% 47,000 44,149
Illinois Environmental Protection Agency Loan - 1.995% 15,058 14,420
Illinois Environmental Protection Agency Loan - 2.21 % 55,615 55,319
Total Water Revenue Bonds 3,525,697 2,468,397
Chicago-O'Hare International Airport Bonds:
Chicago-O'Hare Im Chicago-O'Hare International Airport Revenue Bonds:
Series of 2004 A through H-3rd Lien-3.49% to 5.35% 385,045 29,360
Series of 2005 A and B-3rd Lien-5.0% to 5.25% 1,200,000 110,395
Series of 2005 C and D - 3rd Lien - Variable Rate (.71% and .74% at December 31,2016)... 300,000 240,600
Series of 2008 A through D-3rd Lien-4.0% to 5.0% 779,915 31,140
Series of 2010 A through F - 3rd Lien -1.75% to 6.845% 1,039,985 924,365
Series of 2011 A through C - 3rd Lien - 3.0% to 6.5% 1,000,000 728,830
Refunding Series of 2012 A through C - Senior Lien -1.0% to 5.0% 728,895 546,685
Refunding Series of 2013 A and B - Senior Lien - 2.0% to 5.25% 501,785 463,115
Series of 2013 C and D-.Senior Lien-3.0% to 5.5% 396,120 396,120
Refunding Series of 2015 A and B - Senior Lien - 2.0% to 5.0% 1,620,180 1,591,885
Series of 2015 C and D - Senior Lien - 3.625% to 5.0% 327,200 327,200
Refunding Series of 2016 A through C-Senior Lien-3.0% to 5.0% 1,014,335 1,014,335
Total Chicago-O'Hare International Airport Revenue Bonds 9,293,460 6,404,030
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
214
Table 25 - Concluded CITY OF CHICAGO, ILLINOIS LONG-TERM DEBT December 31, 2016
Outstanding at Original December 31,
Principal 2016
Proprietary Fund Revenue Bonds - Concluded:
Chicago-O'Hare International Airport Passenger Facility Charge Revenue Bonds:
Refunding Series of 2010 A through D - 2.0% to 6.322% 137,665 130,680
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% 452,095 418,945
Total Chicago-O'Hare International Airport Passenger Facility Charge Revenue Bonds 635,765 595,630
Chicago-O'Hare International Airport Revolving Line of Credit:
Revolving Line of Credit-AMT Variable Rate (1.53125% at December 31, 2016) 6,916 6,916
Revolving Line of Credit - Non- AMT Variable Rate (1.53125% at December 31,2016) 5,182 5,182
Total Chicago-O'Hare International Airport Revolving Line of Credit 12,098 12,098
Chicago Midway International Airport Revenue Bonds:
Series 1998 A, B and C-4.3% to 5.5% 397,715 28,730
Series 2004 C - 2nd Lien - Variable Rate (.77% at December 31,2016) 137,125 119,150
Series 2004 D - 2nd Lien - Variable Rate (.74% at December 31,2016) 15,025 13,050
Series 2010 B through D-2nd Lien-3.532% to 7.168% 246,540 62,385
Refunding Series 2013 A through C - 2nd Lien - .74% to 5.5% 333,960 319,375
Series 2014 A through B-2nd Lien-5.0% 771,810 771,810
Refunding Series 2014C - Variable Rate (.79% at December 31,2016) 124,710 124,710
Series 2016 A through B-2nd Lien-2.0% to 5.0% 342,395 342,395
Total Chicago Midway International Airport Revenue Bonds 2,369,280 1,781,605
Wastewater Transmission Revenue Bonds:
Refunding Series 1998 A Sr Lien-4.55% to 5.0% 62,423 35,168
Series 2001 - 2nd Lien - 3.5% to 5.5% 187,685 54,855
Series 2006 A and B-2nd Lien-4.5% to 5.0% 155,030 115,965
Series 2008 A-2nd Lien-4.0% to 5.5% 167,635 146,985
Series 2008 C1 through C3 - 2nd Lien - 3.886% 332,230 332,230
Series 2010 - 2nd Lien - 2.0% to 6.9% 275,865 262,350
Series 2012 - 2nd Lien - 3.0% to 5.0% 276,470 261,545
Series2014-2nd Lien-3.0%to5.0% 292,405 287,685
Series2015-2nd Lien-2.591%to6.042% 87,080 87,080
Illinois Environmental Protection Agency Loan - 2.5% 1,546 952
Illinois Environmental Protection Agency Loan - 0.00% 15,000 11,093
Illinois Environmental Protection Agency Loan -1.25% 17,564 14,925
Illinois Environmental Protection Agency Loan -1.25% 17,812 15,132
Illinois Environmental Protection Agency Loan -1.25% 15,000 13,787
Illinois Environmental Protection Agency Loan -1.93% 54,170 53,068
Total Wastewater Transmission Revenue Bonds 1,957,915 1,692,820
Total Proprietary Fund Revenue Bonds $ 18,042,965 $ 13,203,330
215
Table 26
CITY OF CHICAGO, ILLINOIS POPULATION AND INCOME STATISTICS Last Ten Years
Year Population(l)
-2007—--^2789650-16-
2008... 2,896,016
2009... 2,896,016
2010... 2,695,598
... 2,695,598
... 2,695,598
2013... 2,695,598
... 2,695,598
... 2,695,598
2016... 2,695,598 N/A (5)
Number of Households (2)
----- 1-033,-328 1,032,746 1,037,069 1,045,666 1,048,222 1,054,488 1,062,029 1,031,672 1,053,229 N/A (5)
City Employment
- -1;249;238- -1,237,856 1,171,841 1,116,830 1,120,402 1,144,896 1,153,725 1,264,234 1,273,727 1,282,117 *
Unemployment Rate (3)
— .5:7— ¦<
6.4 10.0 10.1
9.3
8.9
8.3
5.7
5.7
5.4
Per Capita Income (4)
^-43,-7^14=^ 45,328 43,727 45,957 45,977 48,305 49,071 50,690 53,886 N/A (5)
Total Income
r,-^126;596;44-3-,424 131,270,613,248 126,634,091,632 123,881,597,286 123,935,509,246 130,210,861,390 132,275,689,458 136,639,862,620 145,254,993,828 N/A (5)
NOTES:
Source: U.S. Census Bureau.
Source: American Fact Finder - United States Census Bureau data estimates. Data not available for 2016.
Source: Bureau of Labor Statistics 2016, Unemployment rate for Chicago-Naperville-lllinois Metropolitan Area.
Source: U.S. Department of Commerce, Bureau of Economic Analysis, Per Capita Personal Income for Chicago-Naperville-lllinois Metropolitan Area.
(5) N/A means not available at time of publication.
* December 2016 data.
216
Table 27
CITY OF CHICAGO, ILLINOIS
PRINCIPAL EMPLOYERS (NON-GOVERNMENT)
Current Year and Nine Years Ago (See Note at the End of this Page)
Number of
Employees
Employer
Advocate Health Care 18,930
University of Chicago 16,374
Northwestern Memorial Healthcare 15,747
JPMorgan Chase & Co. (2) 15,229
United Continental Holdings Inc. (3) 15,157
Walgreens Boots Alliance Inc 12,685
Northwestern University 10,241
Presence Health 10,183
Abbott Laboratories 9,800
Jewel Food Stores, Inc 9,660
Northern Trust Corporation
Accenture LLP
SBC/AT&T (4)
American Airlines
Ford Motor Company
CVS Corporation
Deloitte & Touche
2016 (1)
Percentage of
Rank
1 2 3 4 5 6 7 8 9 10
Total City Employment
1.48 %
1.28
1.23
1.19
1.18
0.99
0.80
0.79
0.76
0.75
Number of
Employees
9,114 6,102
5,424 4,787 4,283 4,002 3,645 3,367 3,120 2,988
2007 (5)
Percentage of
Total City Employment
1 2
Rank
3 4 5 6 7 8 9 10
0.73 % 0.49
0.43 0.38 0.34 0.32 0.29 0.27 0.25 0.24
NOTES:
Source: Reprinted with permission from the January 16, 2017 issue of Crain's Chicago Business. ©2017 Crain Communications Inc. All Rights Reserved.
J. P. Morgan Chase formerly known as Banc One.
United Continental Holdings Inc. formerly known as United Airlines.
AT&T Inc. formerly known as SBC Ameritech.
Source: City of Chicago, Department of Revenue, Employer's Expense Tax Returns.
Prior to 2014, the source for information was the City of Chicago, Bureau of Revenue-Tax Division report, which is no longer available.
217
Table 28
CITY OF CHICAGO, ILLINOIS
FULL TIME EQUIVALENT CITY OF CHICAGO EMPLOYEES BY FUNCTION Last Ten Years (See Note at the End of this Page)
Budgeted Full Time Equivalent Positions
-..^- Function 2016 • 2015 2014(2)- 2013,(2) 2012 (2) —20.1-1 2010 .- -2009 ,-- . 2008 2007^
General
Government 3,674 3,764 3,760 3,725 3,857 4,363 4,401 4,419 5,112 5,195
Public Safety 21,458 21,182 21,138 21,067 21,040 22,716 22,912 22,954 23,313 23,397
I
Streets and
Sanitation 2,328 2,341 2,341 2,351 2,302 2,576 2,605 3,087 3,648 3,609
Transportation 1,321 1,297 1,171 932 929 980 1,022 718 819 829
Health 613 656 713 738 904 991 1,117 1,257 1,535 1,554
Cultural and
Recreational 1,261 1,253 1,244 1,214 1,153 1,207 1,213 1,318 1,596 1,608
Business-type
Activities 3,672 3,636 3,679 3,528 3,559 3,615 3,619 3,666 3,898 4,015
Total 34,327 34,129 34,046 33,555 33,744 36,448 36,889 37,419 39,921 40,207
NOTES:
Source: City of Chicago 2016 Budget Overview.
Includes full time equivalent positions in grant related programs.
.PerOffice of Budget Management restated figures.
218
Table 29
CITY OF CHICAGO, ILLINOIS
OPERATING INDICATORS BY FUNCTION/DEPARTMENT Last Ten Years
Function/Program 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Police Physical
Arrests 85,493 112,996 129,166 143,618 145,390 152,740 167,355 181,254 196,621 221,915
Fire Emergency
Responses (1).. 713,492 685,525 685,588 675,570 472,752 343,749 343,214 363,519 377,808 402,403
Refuse Collection Refuse Collected
(Tons per Day)... 3,561 3,403 3,265 3,562 3,763 3,983 3,931 3,974 4,240 4,320 Cultural Volumes
in Library (2) 11,823 11,469 11,527 11,452 5,691 5,790 5,770 5,743 5,721 5,891
Water Average Daily Consumption (Thousands of
Gallons) 701,148 719,467 752,362 756,486 793,274 770,925 773,612 808,551 827,156 860,285
Notes: (1) In 2013, Office of Emergency Management and Communications implemented new system accounting for Administrative calls as well. (2) Beginning in 2013, Chicago Public Library utilizes new process to identify library holdings. Figures in thousands.
Table 30
CITY OF CHICAGO, ILLINOIS
CAPITAL ASSET STATISTICS BY FUNCTION
Last Ten Years
Function 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Police Stations 25 25 25 25 25 26 25 25 25 25
Fire Stations 104 104 104 104 104 104 103 103 101 102
Other Public Works:
Streets (Miles) 4,116 4,116 4,116 4,116 4,116 4,091 3,775 3,775 3,775 3,775
Streetlights 328,683 327,613 327,613 327,613 279,668 278,788 261,019 259,699 285,989 192,511
Traffic Signals 3,042 3,037 3,035 3,035 3,035 2,960 2,960 2,960 2,960 2,727
Water
Mains (Miles) 4,295 4,311 4,322 4,321 4,349 4,360 4,300 4,300 4,375 4,236
Sewers
Mains (Miles) 4,452 4,428 4,428 4,428 4,450 4,400 4,400 4,400 4,500 4,500
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Table 31
CITY OF CHICAGO, ILLINOIS
INTEREST RATE SWAP COUNTERPARTY ENTITIES December 31, 2016
(Amounts are in Thousands of Dollars)
Associated Bond Issue
Counterparty Current Notional Credit Rating Amounts Moody's/S&P
Counterparty Entity
City ATE Level (1)
^hjcago.Midway.Airpprt...
Revenue Bonds (Series 2U04C&D).
79,320. 52.280
_A1/A+_
Aa2/AA-
^oj.dmanj^aphs_ Weils Farao
Jaa1iB.BB+ ~Baa27BBB
Total $ . 131,600
Source: Survey of Derivative Instruments. (1) 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.
Certain swaps were terminated in 2016 and are no longer included in the chart above, see Note 10, for additional information.
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Table 32
CITY OF CHICAGO, ILLINOIS
BANK FACILITIES
As of December 31,2016
(Amounts are in Thousands of Dollars)
Bond Liquidity, Letters of Credit and Direct Purchase Facilities
Ratings Thresholds (1)
Issue
Midway 2nd Lien Midway 2nd Lien Midway 2nd Lien Midway 2nd Lien O'Hare 3rd Lien O'Hare 3rd Lien
Series 2004 C-1 2004 C-2
D 2014 C
C 2005 D
Principal Outstanding
1 54,725 64,425 13,050 124,710 140,600 100,000
Expiration or Termination
11/25/2019 11/25/2019 11/25/2019 11/25/2017 08/15/2017 08/15/2017
Bond Maturity Date
01/01/2035 01/01/2035 01/01/2035 01/01/2035 01/01/2035 01/01/2035
Bank
Bank of Montreal Bank of Montreal Bank of Montreal JPMorgan Citibank Barclays
Baa3 BBB-
Baa3 BBB-
Baa3 BBB-
Baa3 BBB-
Baa2 BBB
(2) (2)
Fitch Moody's S&P BBB-BBB-BBB-BBB-BBB (2)
Commercial Paper (CP) Letters of Credit and Lines of Credit Providers
Ratings Thresholds (1)
Issue
G. 0. Line of Credit G. 0. Line of Credit G. 0. Line of Credit Midway CP O'Hare CP O'Hare CP O'Hare CP O'Hare Line of Credit
Series 2015 2015 2015 2003A-D 2016 (4) 2016 (4) 2016 (4) 2016
Borrowing Authority
170,000 170,000 170,000 85,000 180,000 120,000 120,000 180,000
41,421 41,421 41,421
Amount Expiration Outstanding or (Dec. 31,2016) Termination
12,098
09/23/2017 09/23/2017 09/23/2017 07/12/2017 09/27/2019 09/27/2019 09/27/2019 12/12/2019
Bank
JPMorgan BMO Harris Bank of China
JPMorgan Bank of America Bank of Tokyo Barclays JPMorgan
Kroll
BBB- (3) BBB- (3) BBB- (3) BBB-BBB- (3) BBB- (3) BBB- (3) BBB-
N/A N/A N/A Baa3 Baa3 Baa3 Baa3 N/A
Fitch Moody's S&P
BBB-(3) BBB-(3)
BBB-(3) BBB-(3)
BBB-(3) BBB-(3)
BBB- N/A
BBB-(3) N/A
BBB-(3) N/A .
BBB-(3) N/A
BBB- BBB-
Notes:
An underlying rating by any rating agency for the related debt (or lowest rated lien of the related credit) below what is shown in the chart in the "Ratings Threshold" column would constitute an event of default under the agreements with the related banks.
The agreement with Barclays provides that it is an event of default if (A) any two Rating Agencies then rating the Debt of the City payable from or secured by Pledged Revenues which is senior to or on parity with the Bonds shall have downgraded their rating on such Debt to or below "Baa2" (or its equivalent) or "BBB" (or its equivalent), respectively, or (B) any Rating Agency shall have downgraded its rating of any Debt of the City payable from or secured by the Pledged Revenues which is senior to or on a parity with the Bonds to below "Baa3" (or its equivalent) or "BBB-" (or its equivalent), respectively, or suspended or withdrawn its rating of the same and such downgrade, suspension or withdrawal shall remain for a period of 180 days.
An underlying rating by two of the three rating agencies, S&P, Fitch or Kroll, would constitute an event of default under the agreements with the banks.
O'Hare 2009 Program. 2016 Issue series A1-A3, B1-B3 and C1-C3.
Certain series of bonds were converted to fixed rate and are no longer included in the chart above. See Note 10 for additional information.
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