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CHICAGO PUBLIC SCHOOLS Chicago Board of Education Chicago, Illinois COMPREHENSIVE ANNUAL FINANCIAL REPORT For the year ended June 30, 2019 Prepared by the Department of Finance Lori Lightfoot, Mayor, City of Chicago Miguel del Valle, Board President Janice K. Jackson, EdD, Chief Executive Officer CHICAGO PUBLIC SCHOOLS Chicago Board of Education 2019 COMPREHENSIVE ANNUAL FINANCIAL REPORT CONTENTS Page I. INTRODUCTORY SECTION Board Officials ............................................................................................................................................. 2 GFOA Award. .............................................................................................................................................. 3 ASBO Award. .............................................................................................................................................. 4 Organizational Chart. .................................................................................................................................. 5 Board Member Profiles ............................................................................................................................... 6 Letter of Transmittal. ................................................................................................................................. 12 II. FINANCIAL SECTION Independent Auditors’ Report ............................................................................................................ 21 Management’s Discussion and Analysis ............................................................................................. 25 Basic Financial Statements Statement of Net Position ..................................................................................................................... 44 Statement of Activities ........................................................................................................................... 46 Balance Sheet — Governmental Funds ............................................................................................... 47 Reconciliation of the Balance Sheet — Governmental Funds to the Statement of Net Position ........................................................................................................................................... 48 Statement of Revenues, Expenditures and Net Changes in Fund Balances — Governmental Funds ................................................................................................................................................. 49 Reconciliation of the Statement of Revenues, Expenditures and Net Changes in Fund Balances — Governmental Funds to the Statement of Activities .................................................... 50 Notes to Basic Financial Statements .................................................................................................... 51 Required Supplementary Information Statement of Revenues, Expenditures by Object — Other Financing Sources and Net Changes in Fund Balance — Final Appropriations vs. Actual — General Operating Fund ……… 96 Schedule of CPS’ Proportionate Share of Net Pension Liability ...................................................... 97 Schedule of CPS’ Contributions to Defined Benefit Pension Plans………………………………….… 98 Schedule of CPS’ Proportionate Share of Total Other Postemployment Liability ............................ 99 Individual Fund Schedules General Operating Fund Schedule of Revenues, Expenditures and Net Changes in Fund Balance — Final Appropriations and Actual ............................................................................................................ 101 Capital Projects Fund Combining Schedule of Revenues, Expenditures, Other Financing Sources (uses) and Net Changes in Fund Balances ......................................................................................................... 104 Capital Asset Program Schedule of Revenues and Expenditures and Net Change in Fund Balance — Final Appropriations vs. Actual ......................................................................................................... 105 Comprehensive Annual Financial Report i Page Capital Improvement Program Schedule of Revenues, Expenditures by Object, Other Financing Sources (Uses) and Net Change in Fund Balance — Final Appropriations vs. Actual……………………………………..106 Debt Service Fund Schedule of Revenues, Expenditures, Other Financing Sources (Uses) and Net Changes in Fund Balances ............................................................................................................................. 108 Bond Redemption and Interest Program Schedule of Revenues, Expenditures by Object, Other Financing Sources (Uses) and Net Changes in Fund Balance — Final Appropriations vs. Actual ......................................... 109 Public Building Commission Leases Program Schedule of Revenues, Expenditures by Object, Other Financing Sources (Uses) and Net Changes in Fund Balance — Final Appropriations vs. Actual ......................................... 110 III. STATISTICAL SECTION (Unaudited) Financial Trends Components of Net Position — Last Ten Fiscal Years ..................................................................... 114 Changes in Net Position — Last Ten Fiscal Years ............................................................................ 116 Components of Fund Balance — Last Ten Fiscal Years ................................................................... 118 Changes in Fund Balances of Governmental Funds — Last Ten Fiscal Years ................................ 120 Revenues by Source — All Programs — Last Ten Fiscal Years ..................................................... 122 Expenditures by Function — All Programs — Last Ten Fiscal Years ............................................... 124 General Operating Fund — Detailed Schedule of Revenue and Expenditures ................................ 126 Other Financing Sources and (Uses) — Last Ten Fiscal Years ....................................................... 132 Ratio of Debt Service to Non-Capital Expenditures — Last Ten Fiscal Years ................................. 134 Revenue Capacity Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years ............................................. 136 Property Tax Levies and Collections — Last Ten Fiscal Years ....................................................... 138 Assessed Value and Estimated Value of Taxable Property — Last Ten Fiscal Years .................... 140 Principal Property Tax Payers, Based on Equalized Assessed Valuation — Last Ten Fiscal Years ................................................................................................................................................ 142 Schedule of Replacement Tax Data — Last Ten Fiscal Years ........................................................ 144 City of Chicago Tax Increment Financing (TIF) Districts ................................................................... 146 Schedule of New Property EAV as a Percentage of Overall EAV .................................................... 150 Tax Increment Financing (TIF) Agreements in Support of Chicago Public Schools ........................ 151 Debt Capacity Bond Issues Outstanding .................................................................................................................... 152 Total Authorized Bond Issuances ....................................................................................................... 154 Outstanding Debt Per Capita — Last Ten Fiscal Years .................................................................... 158 Legal Debt Margin Information — Last Ten Fiscal Years .................................................................. 160 Direct and Overlapping Governmental Activities Debt ..................................................................... 162 CPS’ Debt Rating History .................................................................................................................... 163 Demographic and Economic Information City of Chicago Principal Employers (Non-Government) — Last Ten Years .................................... 164 Demographic and Economic Statistics — Last Ten Calendar Years ............................................... 166 Metropolitan Chicago Top Public Companies Ranked By 2017 Net Revenues ................................ 168 ii Chicago Public Schools Page Operating Informaiton General Operating Fund — Schedule of Revenues, Expenditures and Net Changes in Fund Balance — Final Appropriations and Actual…………………………………………………………… 169 General Operating Fund — Schedule of Revenue — by Program ................................................ 170 General Operating Fund — Schedule of Expenditures — by Program .......................................... 172 Analysis of Compounded Growth of Revenues — All Funds — Last Ten Fiscal Years ................. 174 Analysis of Compounded Growth of Expenditures — All Funds — Last Ten Fiscal Years ............ 176 Revenues, Expenditures and Other Financing Sources (Uses) — All Funds — Last Ten Fiscal Years ........................................................................................................................................... 178 Analysis of Compounded Growth of General Operating Fund Revenues — Last Ten Fiscal Years ........................................................................................................................................... 180 Analysis