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CITY OF CHICAGO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2007 Richard M. Daley, Mayor Paul A. Volpe, Chief Financial Officer Steven J. Lux, City Comptroller CITY OF CHICAGO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2007 Richard M. Daley, Mayor Paul A. Volpe, Chief Financial Officer Steven J. Lux, City Comptroller C CITY OF CHICAGO THE CITY COUNCIL As of December 31, 2007 RICHARD M. DALEY, Mayor 1st Ward .................................................................... MANUEL FLORES 2nd Ward ................................................................... ROBERT FIORETTI 3rd Ward ........................................................................PAT DOWELL 4th Ward ................................................................. TONI PRECKWINKLE 5th Ward ................................................................. LESLIE A. HAIRSTON 6th Ward ............................................................... FREDDRENNA M. LYLE 7th Ward .....................................................................SANDI JACKSON 8th Ward .................................................................MICHELLE A. HARRIS 9th Ward .................................................................... ANTHONY BEALE 10th Ward .......................................................................JOHN A. POPE 11th Ward ................................................................... JAMES A. BALCER 12th Ward ...............................................................GEORGE A. CARDENAS 13th Ward ..................................................................... FRANK J. OLIVO 14th Ward .................................................................. EDWARD M. BURKE 15th Ward ...................................................................... TONI FOULKES 16th Ward .................................................................. JOANN THOMPSON 17th Ward ................................................................ LATASHA R. THOMAS 18th Ward ......................................................................... LONA LANE 19th Ward ................................................................... VIRGINIA A. RUGAI 20th Ward ....................................................................WILLIE COCHRAN 21st Ward ............................................................. HOWARD BROOKINS, JR. 22nd Ward ....................................................................RICARDO MUÑOZ 23rd Ward ............................................................... MICHAEL R. ZALEWSKI 24th Ward .............................................................. SHARON DENISE DIXON 25th Ward .....................................................................DANIEL S. SOLIS 26th Ward ....................................................................... BILLY OCASIO 27th Ward ............................................................... WALTER BURNETT, JR. 28th Ward ........................................................................ ED H. SMITH 29th Ward ................................................................ISAAC S. CAROTHERS 30th Ward ................................................................. ARIEL E. REBOYRAS 31st Ward .............................................................. REGNER “RAY” SUAREZ 32nd Ward ................................................................SCOTT WAGUESPACK 33rd Ward ....................................................................RICHARD F. MELL 34th Ward ................................................................... CARRIE M. AUSTIN 35th Ward .........................................................................REY COLON 36th Ward ..................................................................WILLIAM J.P. BANKS 37th Ward ........................................................................ EMMA MITTS 38th Ward ................................................................... THOMAS R. ALLEN 39th Ward ................................................................ MARGARET LAURINO 40th Ward ............................................................... PATRICK J. O’CONNOR 41st Ward .................................................................. BRIAN G. DOHERTY 42nd Ward ....................................................................BRENDAN REILLY 43rd Ward ........................................................................... VI DALEY 44th Ward ................................................................. THOMAS M. TUNNEY 45th Ward ................................................................... PATRICK J. LEVAR 46th Ward ..................................................................... HELEN SHILLER 47th Ward ............................................................... EUGENE C. SCHULTER 48th Ward ....................................................................MARY ANN SMITH 49th Ward .................................................................. JOSEPH A. MOORE 50th Ward ..................................................................BERNARD L. STONE 2007 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF CHICAGO Table of Contents PART I - INTRODUCTORY SECTION PART III - STATISTICAL SECTION (Unaudited) Letter of Transmittal....................................... 7 Table 1 Net Assets by Component, Certificate of Achievement for Excellence in Last Six Years.............................. 120 Financial Reporting ...................................... 11 Table 2 Changes in Net Assets - Accrual Basis of Accounting, Organization Chart ........................................ 12 Last Six Years.............................. 121 Table 3 General Governmental Revenues by Source, Schedule PART II - FINANCIAL SECTION Last Ten Years ............................. 124 Table 4 General Governmental Expenditures by Function, Independent Auditors’ Report, Management’s Discussion and Last Ten Years ............................. 126 Analysis and the Financial Statements Table 4A Changes in Fund Balances, Governmental Funds, Last Ten Years ............................. 128 Independent Auditors’ Report ................................ 14 Table 5 Fund Balances, Governmental Funds, Management’s Discussion and Analysis ....................... 16 Last Ten Years ............................. 130 Table 6 General Fund, Schedule of Revenues, Basic Financial Statements Expenditures and Changes in Fund Balances, Five Years Ended December 31, 2007 ........... 132 Exhibit 1 Statement of Net Assets....................... 29 Table 7 Special Revenue Funds, Schedule of Revenues, Exhibit 2 Statement of Activities ........................ 30 Expenditures and Changes in Fund Balances, Exhibit 3 Balance Sheet, Governmental Funds ............ 32 Five Years Ended December 31, 2007 ........... 133 Exhibit 4 Statement of Revenues, Expenditures and Table 8 Debt Service Funds, Schedule of Revenues, Changes in Fund Balances, Governmental Funds 34 Expenditures and Changes in Fund Balances, Exhibit 5 Reconciliation of the Statement of Revenues, Five Years Ended December 31, 2007 ........... 134 Expenditures and Changes in Fund Balances of Table 9 Capital Projects Funds, Schedule of Revenues, Governmental Funds to the Statement of Activities 38 Expenditures and Changes in Fund Balances, Exhibit 6 Statement of Revenues and Expenditures - Five Years Ended December 31, 2007 ........... 135 Budget and Actual, General Fund Table 10 Property Tax Levies by Fund, (Budgetary Basis) .......................... 39 Five Years Ended December 31, 2007 ........... 136 Exhibit 7 Statement of Net Assets, Proprietary Funds ....... 40 Table 11 Property Levies, Collections and Estimated Exhibit 8 Statement of Revenues, Expenses and Changes Allowance for Uncollectible Taxes, in Net Assets, Proprietary Funds ............... 42 Last Ten Years ............................. 138 Exhibit 9 Statement of Cash Flows, Proprietary Funds ....... 43 Table 12 Top Ten Estimated Equalized Assessed Valuation, Exhibit 10 Statement of Fiduciary Net Assets, Fiduciary Funds 45 Current Year and Nine Years Ago ............... 139 Exhibit 11 Statement of Changes in Plan Net Assets, Pension Table 13 Assessed and Estimated Fair Market Value of All Trust Funds ............................... 46 Taxable Property, Last Ten Years ............... 140 Notes to Basic Financial Statements .......................... 47 Table 14 Property Tax Rates-Direct and Overlapping Required Supplementary Information .......................... 91 Governments, Per $100 of Equalized Assessed Valuation, Last Ten Years ............ 142 Combining and Individual Fund Statements Table 15 Property Tax Rates-City of Chicago, Per $100 of Equalized Assessed Valuation, Last Ten Years.... 142 General Fund Table 16 Ratio of General Net Bonded Debt to Equalized Schedule A-1 Schedule of Revenues-Budget and Actual Assessed Value and Net Bonded Debt Per Capita, (Budgetary Basis) ........................... 94 Last Ten Years............................. 144 Nonmajor Governmental Funds Table 17 Ratio of Annual Debt Service Expenditures for Schedule B-1 Combining Balance Sheet ..................... 98 General Obligation Debt to Total Schedule B-2 Combining Statement of Revenues, Expenditures Governmental Expenditures, Last Ten Years . ... 144 and Changes in Fund Balance ................ 99 Table 18 Computation of Direct and Overlapping Nonmajor Special Revenue Funds Bonded Debt............................... 145 Schedule C-1 Combining Balance Sheet .....................102 Table