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Des Plaines TIF No. 6 ATR FY 2014CITY OF DES PLAINES TAX INCREMENT FINANCING DISTRICT NO. 6 MANNHEIM RD / HIGGINS RD TIF DISTRICT ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 City of Des Plaines Tax Increment Financing District No. 6 Mannheim Rd / Higgins Rd TIF District Table of Contents SECTION TITLE PAGE 1.0 Name of Redevelopment Project Area and Contact Information 1 2.0 Redevelopment Project Information 3 Attachment A Amendments to the Redevelopment Plan, the Redevelopment Project and/or Area Boundary 4 Attachment B Certification of the Chief Executive Officer of the municipality that the municipality has complied with all of the requirements of the TIF Statute (the "Act") during the reporting Fiscal Year. 5 Attachment C Opinion of legal counsel that the municipality is in compliance with the Act 6 Attachment D Statement setting forth all activities undertaken in furtherance of the objectives of the Redevelopment Plan 8 Attachment E Description of Agreements Regarding Property Disposition or Redevelopment 9 Attachment F Additional Information on Uses of Funds Related to Achieving Objectives of the Redevelopment Plan 10 Attachment G Information Regarding Contracts with TIF Consultants 11 Attachment H Reports Submitted by Joint Review Board 12 Attachment I Summary of any obligations issued by the municipality and official statements 13 Attachment J Financial Analysis: TIF Obligations 14 Attachments For special tax allocation funds that have experienced cumulative K and L deposits of incremental tax revenues of $100,000 or more, a certified audit report reviewing compliance with the Act . 15 CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 SECTION TITLE PAGE Attachment M Intergovernmental Agreements 16 3.1 Analysis of Special Tax Allocation Fund 17 3.2 Itemized List of Expenditures from Special Tax Allocation Fund 19 3.3 Special Tax Allocation Fund Balance (end of reporting period) 24 4.0 Property purchased by the municipality within the Redevelopment Project Area 26 5.0 Review of Public and Private Investment 28 6.0 Optional Sections 30 Exhibit A Exhibit B Exhibit C Exhibit D TIF 6 Amendment Ordinances Joint Review Board Minutes Official Statement Audit and Compliance Letter CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 Section 1. Name of Redevelopment Project Area and Contact Information Refer to chart attached. CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 FY 2014 ANNUAL TAX INCREMENT FINANCE REPORT Name of Municipality: Des Plaines County: Cook Unit Code: 016/140/30 Reporting Fiscal Year: Fiscal Year End: TIF Administrator Contact Information 2014 12/31/2014 First Name: Michael Address: 1420 Miner Street Telephone: 847/391-5488 Mobile Mobile Provider Last Name: Bartholomew Title: City Manager City: Des Plaines Zip: E-mail mbartholomew@desolaines.org Best way to x Email x Phone contact Mobile Mail 80018 I attest to the best of my knowledge, this report of the redevelopment project areas in: CityNiilage of Des Plaines is complete and accurate at the end of this reporting Fiscal year under the Tax Increment Allocation Redevelopment Act 165 ILCS 5111-74.4-3 =t. =e Or the Industrial Jobs Recovery Law f65 ILCS 5111-74.6-10 et. sea.1 Date Written signature of TIF Adminlstator Section 1 (65 ILCS 5/11-74.4-5 (d) (1.5) and 65 ILCS 5/11-74.6-22 (d} (1.51" FILL OUT ONE FOR EACH TIF DISTICT Name of Redevelopment Project Area Date Designated Date Terminated TIF No. 1 Downtown 7/15/1985 TIF No. 3 Willie Road Mt. Prospect Road 8/7/2000 TIF No. 4 Five Corners Rand Road 10/2006 11/19/2014 TIF No. 5 Lee Street Perry Street 4/21/2001 TIF No. 6 Mannheim - Higgins Road* 10/15/2001 TIF No. 7 Higgins Road and Pratt Avenue 10/20/2014 n„ aiawwr y c�rar,ons rerer ro one or vivo sections or the niinois Municipal Code: the Tax Increment Allocation Redevelopment Act [65 ILCS 5/11-74.4-3 et. seq.] or the Industrial Jobs Recovery Law [65 ILCS 5/11-74.6-10 et. seq.] 2 SECTION 2 [Sections 2 through 5 must be completed for each redevelopment project area listed in Section 1.] FY 2014 Name of Redevelopment Project Area: TIF 6 Mannheim Higgins Primary Use of Redevelopment Project Area*: Commercial If "Combination/Mixed" List Component Types: Under which section of the Illinois Municipal Code was Redevelopment Project Area designated? (check one): Tax Increment Allocation Redevelopment Act _x_ Industrial Jobs Recovery Law * Types include: Central Business District, Retail, Other Commercial, Industrial, Residential, and Combination/Mixed. 3 No Yes Were there any amendments to the redevelopment plan, the redevelopment project area, or the State Sales Tax Boundary? [65 ILCS 5/11-74.4-5 (d) (1) and 5/11-74.6-22 (d) (1)] If yes, please enclose the amendment labeled Attachment A X Certification of the Chief Executive Officer of the municipality that the municipality has complied with all of the requirements of the Act during the preceding fiscal year. [65 ILCS 5/11-74.4-5 (d) (3) and 5/11-74.6 22 (d) (3)] Please enclose the CEO Certification labeled Attachment B X Opinion of legal counsel that municipality is in compliance with the Act. [65 ILCS 5/11-74.4-5 (d) (4) and 5/11-74.6-22 (d) (4)] Please enclose the Legal Counsel Opinion labeled Attachment C X Were there any activities undertaken in furtherance of the objectives of the redevelopment plan, including any project implemented in the preceding fiscal year and a description of the activities undertaken? [65 ILCS 5/11-74.4-5 (d) (7) (A and B) and 5/11-74.6-22 (d) (7) (A and B)] If yes, please enclose the Activities Statement labeled Attachment D X Were any agreements entered into by the municipality with regard to the disposition or redevelopment of any property within the redevelopment project area or the area within the State Sales Tax Boundary? [65 ILCS 5/11-74.4-5 (d) (7) (C) and 5/11-74.6-22 (d) (7) (C)] If yes, please enclose the Agreement(s) labeled Attachment E X Is there additional information on the use of all funds received under this Division and steps taken by the municipality to achieve the objectives of the redevelopment plan? [65 ILCS 5/11-74.4-5 (d) (7) (D) and 5/11-74.6-22 (d) (7) (D)] If yes, please enclose the Additional Information labeled Attachment F X Did the municipality's TIF advisors or consultants enter into contracts with entities or persons that have received or are receiving payments financed by tax increment revenues produced by the same TIF? [65 ILCS 5/11-74.4-5 (d) (7) (E) and 5/11-74.6-22 (d) (7) (E)] If yes, please enclose the contract(s) or description of the contract(s) labeled Attachment G X Were there any reports or meeting minutes submitted to the municipality by the joint review board? [65 ILCS 5/11-74.4-5 (d) (7) (F) and 5/11-74.6-22 (d) (7) (F)] If yes, please enclose the Joint Review Board Report labeled Attachment H X Were any obligations issued by municipality? [65 ILCS 5/11-74.4-5 (d) (8) (A) and 5/11-74.6-22 (d) (8) (A)] If yes, please enclose the Official Statement labeled Attachment I X Was analysis prepared by a financial advisor or underwriter setting forth the nature and term of obligation and projected debt service including required reserves and debt coverage? [65 ILCS 5/11-74.4- 5 (d) (8) (B) and 5/11-74.6-22 (d) (8) (B)] If yes, please enclose the Analysis labeled Attachment J X Cumulatively, have deposits equal or greater than $100,000 been made into the special tax allocation fund? 65 ILCS 5/11-74.4-5 (d) (2) and 5/11-74.6-22 (d) (2) If yes, please enclose Audited financial statements of the special tax allocation fund labeled Attachment K X Cumulatively, have deposits of incremental revenue equal to or greater than $100,000 been made into the special tax allocation fund? [65 ILCS 5/11-74.4-5 (d) (9) and 5/11-74.6-22 (d) (9)] If yes, please enclose a certified letter statement reviewing compliance with the Act labeled Attachment L X A list of all intergovernmental agreements in effect in FY 2010, to which the municipality is a part, and an accounting of any money transferred or received by the municipality during that fiscal year pursuant to those intergovernmental agreements. [65 ILCS 5/11-74.4-5 (d) (10)] If yes, please enclose list only of the intergovernmental agreements labeled Attachment M X * Types include: Central Business District, Retail, Other Commercial, Industrial, Residential, and Combination/Mixed. 3 Attachment A Amendments to the Redevelopment Plan, the Redevelopment Project and/or the Area Boundary The City amended the Redevelopment Plan and the Redevelopment Project Area in order to remove property within the reporting Fiscal Year. The amendment ordinances are attached as Exhibit A. CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 4 Attachment B Certification of the Chief Executive Officer of the municipality that the municipality has complied with all of the requirements of the Act during the reporting Fiscal Year. Re: City of Des Plaines Certificate of Compliance Tax Increment Financing District #6 — Mannheim Rd / Higgins Rd Redevelopment Project Area For Fiscal Year Ending December 31, 2014 I, Matthew J. Bogusz, the duly elected Chief Executive Officer of the City of Des Plaines, County of Cook, State of Illinois, do hereby certify that to the best of my knowledge, the City of Des Plaines complied with the requirements pertaining to the Illinois Tax Increment Redevelopment All r, ation Act during the fiscal year beginning January 1, 2014 and ending December 31, 201- . —411Vd.r.#01)2r 1D tgb MAYOR GATE CITY OF DESPLAIJVES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 5 Attachment C Opinion of legal counsel that the municipality has complied with the Act. CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 6 RE: Attorney Review City of Des Plaines Mannheim Rd / Higgins Rd TIF District #6 To Whom It May Concern: This will confirm that I am the General Counsel for the City of Des Plaines, Illinois. I have reviewed all information provided to me by the City staff and consultants, and I find that the City of Des Plaines has conformed to all applicable requirements of the Illinois Tax Increment Redevelopment Allocation Act set forth thereunder for the fiscal year beginning January 1, 2014 and ending December 31, 2014, to the best of my knowledge and belief. Sincerely, Geral Counsel (341A1A.. CITY OF DES PLAINES TIF DISTRICT 06 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER SI, 2014 7 Attachment D Statement setting forth all activities undertaken in furtherance of the objectives of the Redevelopment Plan, including any project implemented in the preceding fiscal year and a description of the activities undertaken [65 ILCS 5/11-74.4- 5(d)(7)(A & B) and 5/11-74.6-22(d)(7)(A & B)] TIF #6 The City of Des Plaines' sixth TIF District was established in October, 2001. The creation of this approximately 40.5 acre TIF District was in response to the City's desire to respond to the problem conditions within an important commercial intersection within the City of Des Plaines and to revitalize the area. The Plan was established to promote the development of potentially four (4) new hotels, and separate redevelopment agreements were approved in 2007 and 2008 (each agreement included two hotel projects). A commercial strip center was completed in 2007 including Starbuck's and Potbelly's as tenants. Bonds were previously issued in 2004 on behalf of this project in order to address land acquisition needs within the area, which the City completed in 2007. The City refunded a portion of debt in the reporting Fiscal Year. However, due to current economic conditions, and restrictions in the capital markets, the hotel projects have not been initiated, and the City undertook an amendment to TIF 6 in order to remove certain properties south of Pratt Avenue into an adjacent, newly created TIF 7. This will allow the City to evaluate new projects utilizing a lower Base EAV and additional time to amortize project costs. The City enlisted the participation of the taxing districts as part of an intergovernmental agreement as part of the TIF #7 designation. CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 8 Attachment E Description of any agreements entered into by the municipality with regard to the disposition or redevelopment of any property within the redevelopment project area or the area within the State Sales Tax Boundary [65 ILCS 5/11-74.4-5(d)(7)(C) and 5/11-74.6- 22(d)(7)(C)] TIF #6 Currently, the City has several outstanding financial obligations which have been issued for public purposes or on behalf of private investors, all of which are payable with the current TIF District's existing and future revenues (and are summarized in Section 3.3). CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 9 Attachment F Additional Information on use of all funds received under this Division and steps taken by the municipality to achieve the objectives of the redevelopment plan [65 ILCS 5/11-74.4-5 (d)(7)(D) and 5/11-74.6-22 (d)(7)(D)] The City of Des Plaines continued to implement the primary objectives of the TIF #6 Redevelopment Plan and Project by assisting in "outlining a framework for future land use and development that will enhance economic activity and strengthen the economic well-being of the Area and the City by increasing the value of the property". CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 10 Attachment G Information regarding contracts that TIF advisors or consultants have entered into with entities or persons receiving payments financed by tax increment revenues produced by the same TIF [65 ILCS 5/11-74.4-5 (d)(7)(E) and 5/11-74.6-22 (d)(7)(E)] The City utilized the services of Kane, McKenna and Associates, Inc. during the previous fiscal year in order to assist in monitoring the TIF Districts regarding their financial condition, with respect to the annual JRB meeting and with respect to development project negotiations. Fees were based upon hourly rates for services rendered and did not include contingent payments. CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 11 Attachment H Reports Submitted by Joint Review Board. The Board met on November 5, 2014 to review the annual report and on August 20, 2014 in order to consider the TIF #6 amendments. Minutes of the meetings are attached as Exhibit B. CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2019 12 Attachment I Summary of any obligations issued by the municipality and official statements The City issued $2,020,000 and $ 5,600,000 of General Obligation Refunding Bonds, Series 2014A and Series 2014B, respectively, to refund portions of obligations related to TIF No. 3 and TIF No. 6. ($1,940,000 was allocated to TIF 6) .The Official Statement is attached as Exhibit C. CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 13 Attachment J Financial Analysis: TIF Obligations The City continued to monitor debt existing obligations. Outstanding principal amounts, as well as future interest payments, associated with existing debt are summarized in Section 3.3 below. CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 14 Attachments K and L For special tax allocation funds that have experienced cumulative deposits of incremental tax revenues of $100,000 or more, a certified audit report reviewing compliance with the Act performed by an independent public accountant certified and licensed by the authority of the State of Illinois. The audit report shall contain a letter from the independent certified public accountant indicating compliance or noncompliance with the requirements of subsection (q) of Section 11-74.4-3. Relevant portions of the City's audit and the compliance letter are attached as Exhibit D. CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 15 Attachment M Intergovernmental Agreements Not applicable. CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 Section 3.1 Analysis of Special Tax Allocation Fund Refer to table attached. CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 SECTION 3.1 - (65 ILCS 5/11-74.4-5 (d) (5) and 65 ILCS 5/11-74.6-22 (d) (5)) Provide an analysis of the special tax allocation fund. FY 2014 TIF NAME: TIF No. 6 Mannheim Higgins Fund Balance at Beginning of Reporting Period $ (2,384,245) Revenue/Cash Receipts Deposited in Fund During Reporting FY: Reporting Year Cumulative* % of Total Property Tax Increment $ 9,550 $ 918,501 5% State Sales Tax Increment 0% Local Sales Tax Increment 0% State Utility Tax Increment 0% Local Utility Tax Increment 0% Interest $ 149 $ 546,083 3% Land/Building Sale Proceeds $ 26,029 0% Bond Proceeds $ 2,021,707 $ 16,650,249 88% Transfers from Municipal Sources 0% Private Sources 0% Other (identify source ; if multiple other sources, attach - $ 768,729 4% schedule) Total Amount Deposited in Special Tax Allocation Fund During Reporting Period Cumulative Total Revenues/Cash Receipts Total Expenditures/Cash Disbursements (Carried forward from Section 3.2) Distribution of Surplus Total Expenditures/Disbursements NET INCOME/CASH RECEIPTS OVER/(UNDER) CASH DISBURSEMENTS FUND BALANCE, END OF REPORTING PERIOD* *must be completed where 'Reporting Year' is populated $ 2,031,406 $ 18,909,591 100% $ 7,728,131 $ 7,728,131 $ (5,696,725) $ (8,080,970) * if there is a positive fund balance at the end of the reporting period, you must complete Section 3.3 SURPLUS*/(DEFICIT)(Carried forward from Section 3.3) 18 $ (18,188,418) Section 3.2 Itemized List of Expenditures from Special Tax Allocation Fund Refer to tables attached. CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 SECTION 3.2 A- (65 ILCS 5/11-74.4-5 (d) (5) and 65 ILCS 5/11-74.6-22 (d) (5)) FY 2014 TIF NAME: TIF No. 6 Mannheim Higgins ITEMIZED LIST OF ALL EXPENDITURES FROM THE SPECIAL TAX ALLOCATION FUND (by category of permissible redevelopment cost, amounts expended during reporting period) FOR AMOUNTS >$10,000 SECTION 3.2 B MUST BE COMPLETED Category of Permissible Redevelopment Cost (65 ILCS 5/11-74.4-3 (q) and 65 ILCS 5/11-74.6- 10 (o)] Amounts Reporting Fiscal Year 1. Costs of studies, administration and professional services—Subsections (q)(1) and (o) (1) Professional costs/services 48,418 TIF Transfers reimbursements 49,527 97,945 2. Cost of marketing sites—Subsections (q)(1.6) and (o)(1.6) 3. Property assembly, demolition, site preparation and environmental site improvement costs. Subsection (q)(2), (o)(2) and (o)(3) 4. Costs of rehabilitation, reconstruction, repair or remodeling of existing public or private buildings. Subsection (q)(3) and (o)(4) 5. Costs of construction of public works and improvements. Subsection (q)(4) and (o)(5) 6. Costs of removing contaminants required by environmental laws or rules (o)(6) - Industrial Jobs Recovery TIFs ONLY 20 SECTION 3.2 A PAGE 2 7. Cost of job training and retraining, including "welfare to work" programs Subsection (q)(5), (o)(7) and (o)(12) 8. Financing costs. Subsection (q) (6) and (o)(8) Transfers out Refunding Bond Escrow 6,440,489 Debt Service 1,189,697 7,630,186 9. Approved capital costs. Subsection (q)(7) and (o)(9) 10. Cost of Reimbursing school districts for their increased costs caused by TIF assisted housing projects. Subsection (q)(7.5) - Tax Increment Allocation Redevelopment TIFs ONLY 11. Relocation costs. Subsection (q)(8) and (o)(10) 12. Payments in lieu of taxes. Subsection (q)(9) and (o)(11) 13. Costs of job training, retraining advanced vocational or career education provided by other taxing bodies. Subsection (q)(10) and (o)(12) 21 SECTION 3.2 A PAGE 3 14. Costs of reimbursing private developers for interest expenses incurred on approved redevelopment projects. Subsection (q)(11)(A-E) and (o)(13)(A-E) 15. Costs of construction of new housing units for low income and very low-income households. Subsection (q)(11)(F) - Tax Increment Allocation Redevelopment TIFs ONLY 16. Cost of day care services and operational costs of day care centers. Subsection (q) (11.5) - Tax Increment Allocation Redevelopment TIFs ONLY TOTAL ITEMIZED EXPENDITURES 7,728,131 Section 3.2 B FY 2014 TIF NAME: TIF No. 6 Mannheim Higgins List all vendors, including other municipal funds, that were paid in excess of $10,000 during the current reporting year. There were no vendors, including other municipal funds, paid in excess of $10,000 during the current reporting period. Name Service Amount Des Plaines, City of Auction Deposit -Land Acquisition 110,000.00 Holland & Knight LLP Legal Services 31,857.50 Kane McKenna & Associates Inc TIF Research, Analysis, Reporting 12,128.50 Bond Fund Debt Service 1,189,697.00 Section 3.3 Special Tax Allocation Fund Balance (end of reporting period). Refer to table attached. CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 SECTION 3.3 - (65 ILCS 5/11-74.4-5 (d) (5) 65 ILCS 11-74.6-22 (d) (5)) Breakdown of the Balance in the Special Tax Allocation Fund At the End of the Reporting Period FY 2014 TIF NAME: TIF No. 6 Mannheim Higgins FUND BALANCE, END OF REPORTING PERIOD 1. Description of Debt Obligations $ (8,080,970) Amount of Original Issuance Amount Designated Bonds Series 2003 C $ 2,250,000 Bonds Series 2004 B $ 7,500,000 Bonds Series 2009 A $ 5,430,000 $ 3,418,391 Bonds Series 2011 A $ 250,000 $ 191,499 Bonds Series 2013 $ 4,390,000 $ 4,390,172 Bonds Series 2014 $ 2,020,000 $ 2,057,386 Total Amount Designated for Obligations 2. Description of Project Costs to be Paid $ 21,840,000 $ 10,057,448 Contractual Services $ 50,000 Total Amount Designated for Project Costs TOTAL AMOUNT DESIGNATED SURPLUS*/(DEFICIT) $ 50,000 $ 10,107,448 $ (18,188,418) * NOTE: If a surplus is calculated, the municipality may be required to repay the amount to overlapping taxing Section 4.0 A description of all property purchased by the municipality within the Redevelopment Project Area including: A. Street Address B. Approximate size or description of property C. Purchase Price D. Seller of property Refer to table attached. CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 26 SECTION 4 [65 ILCS 5/11-74.4-5 (d) (6) and 65 ILCS 5/11-74.6-22 (d) (6)] FY 2014 TIF NAME: TIF No. 6 Mannheim Higgins Provide a description of all property purchased by the municipality during the reporting fiscal year within the redevelopment project area. _X_ No property was acquired by the Municipality Within the Redevelopment Project Area Property Acquired by the Municipality Within the Redevelopment Project Area Property (1): Street address: Approximate size or description of property: Purchase price: Seller of property: Property (2): Street address: Approximate size or description of property: Purchase price: Seller of property: Property (3): Street address: Approximate size or description of property: Purchase price: Seller of property: Property (4): Street address: Approximate size or description of property: Purchase price: Seller of property: 27 Section 5.0 Review of Public and Private Investment. Refer to table attached. CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2019 SECTION 5 - 65 ILCS 5111-74.4-5 (d) (7) (G) and 65 ILCS 5/11-74.6-22 (d) (7) (G) PAGE 1 FY 2014 TIF NAME: TIF No. 6 Mannheim Higgins SECTION 5 PROVIDES PAGES 1-3 TO ACCOMMODATE UP TO 25 PROJECTS. PAGE 1 MUST BE INCLUDED WITH TIF REPORT. PAGES 2-3 SHOULD BE INCLUDED ONLY IF PROJECTS ARE LISTED ON THESE PAGES Check here if NO projects were undertaken by the Municipality Within the Redevelopment Project Area: None ENTER total number of projects undertaken by the Municipality Within the Redevelopment Project Area and list them in detail below*. TOTAL: 11/1/99 to Date Estimated Investment for Subsequent Fiscal Year Total Estimated to Complete Project Private Investment Undertaken (See Instructions) $ - 0 Public Investment Undertaken 0 $ - $ - Ratio of Private/Public Investment 0 Project 1: *IF PROJECTS ARE LISTED NUMBER MUST BE ENTERED ABOVE Project 2: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 2: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 3: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 4: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 5: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 6: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 29 Optional: Information in the following sections is not required by law, but would be helpful in evaluating the performance of TIF in Illinois. *even though optional MUST be included as part of complete TIF report SECTION 6 FY 2014 TIF NAME: TIF No. 6 Mannheim Higgins Provide the base EAV (at the time of designation) and the EAV for the year reported for the redevelopment project area Year redevelopment project area was designated Base EAV Reporting Fiscal Year EAV 2001 $ 6,802,764 $ 3,996,057 List all overlapping tax districts in the redevelopment project area. If overlapping taxing district received a surplus, list the surplus. _X_ The overlapping taxing districts did not receive a surplus. Overlapping Taxing District Surplus Distributed from redevelopment project area to overlapping districts Description and Type (Temporary or Permanent) of Jobs $ - $ - $ - $ - $ - $ - $ $ - $ - $ - $ - $ - $ - $ - $ - SECTION 7 Provide information about job creation and retention Number of Jobs Retained Number of Jobs Created Description and Type (Temporary or Permanent) of Jobs Total Salaries Paid $ - $ - $ - $ - $ - $ - $ - SECTION 8 Provide a general description of the redevelopment project area using only major boundaries: Optional Documents Enclosed Legal description of redevelopment project area Map of District 30 EXHIBIT A CITY OF DES PLAINES STATE OF ILLINOIS COUNTY OF COOK CLERK'S CERTIFICATE ify that I am the qualified and I, GLORIA J. LUDWIG, do hereby c CITY CLERK* of the City of Des Plaines, Cook County, Illinois, AND THAT AS SUCH, I am the officer duly designated by law to keep of the City Council of the City of Des Plai ng copy of ORDINANCE M-38-14; I further certify that the attached and forego AN ORDINANCE APPROVING AN AMENDED TAX INCREMENT REDEVELOPMENT O rx ROAD / MANNHEIM FOR THE HIGGINS REDEVELOPMNET PROJECT AREA is a true and correct copy of the records of the City of IN WITNESS WHEREOF, I hereunto affix my signature and impress hereon corporate seal of the said City of Des Plaines, Cook County, Illinois, this 21st day of October, R1 o a ) U t ca V 13438 0 08e4 8q o n ° goE? 2d agSgoo � v8ga 3 • 0 •4gge , 40i a�°A �1v oTm¢g d o g4U°�� N J a yoc g a- N.0 e449, o 0 8 aN4 o o'w " g" o F 33 a �i n 4� d y 0 °� ti 000 "e mi E g JO 8 o • �7 m mro•o o aroi °„o°, `g� 9e, 0 n0 0 0 >0 vAino a�aaocs c 3a 8� RE!, v o' „b .0 B n o ,1 2 s d U w 5 o o 40 o o <b $v v • d� 40 q.� y N 8 0.'•[ "�M~.0 '0 wb N ..81L1.0. ° O 'O .5 O Ulei g 7q a ear � 9 a1 aE <y 4� 3 a c p ro O 1 8 's ". �f ' -1 0 g ''' N O v°i U cC 0 a 4444° C ty Q °o _. o E 0 4 v a� ti 4>i Fs A'.g t3 , '8a N ,8 a'4 E N•o,0 w • �n b'o N $ `°a o p, � o O ^ ' 5p3, odp' a 9-6 to ai a_ ap c o 43i o " ^o= Y' by p '� F.) 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N4, OUH,r p"Q�zxQ��W zx�N2 8QY.E7.1Et0.4° z� zg wa w,W.zQgw!, _,:4oRo o0.0 „, UzE-�OUZ MacggLNOU 0a0 vCg 44-QaOFA / }/ • A /7 cer z A� .2 >,4 d 4,1llH 1181- a o s d "v d 809 aa04:d-Q 0 8't.0 a,Mw 8 a,2;13 t 0 b 8 A' d c d� O 1-4 o 0E d▪ am° b@a§ y4 p •0)•ala .� • d cc3 E' o W E" y 5 o a m 5 8 d tO vOi ibit i provides a boundary map and u 0u b o ▪ ' ++ r~ 8 2 00 O d 'b > o 0 r24 r0 ral v� .2 0 a U a ad §d.� A-8 ' rzl E•. ii b� G• 42 pp O d m q ° `.5 $4 g o (1> o • 6. ct a) Y •d• aa) 88A 11,51-(9 �o 8 m4 gaai g. §scc •1:4.11 a w '. 'i1 "d cr, 3 2, afP4, obih � G 0 b _,..,0 °l,go . Hg`dd579`�°° d o vo .� p a, a,41 v, 03 414 ori.4..)WU)oq°Al 15 'ip,; t q ,a.)b.a .!!!›,,,,224:14 w 8ssial v 3 ',,i N.M,av• 0,wmaa 48 A SB ' 8o vg City of Des Plaines - Mannheim/Higgins TIF City of Des Plaines - Mannheim/Higgins TIF Page 21, paragraph 1 — Delete first sentence. Page 22, paragraph 2 — Delete second sentence. N O 8 a 44:0— ngo q 1-40 1 z Ca10 LO nCO't M rc W V MN Q\N 'O CO CO CO It") ‘O vO L M O N `C a} N � •C 0 M M ,CcOHO � �y N 06 06 N CO CO COV t0 sO I CO CA O N M a• O NCO 0 0 O 0 0 0 O .w .i . rt .+ N N N 000o0Q000000000 0 Co Co Co Co w 0o Co 0 g Co Co 00 0p Co 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N M M M M M M M M M M M M M M M 0CM), M M M M M M M M M M rnM M 0 0 0 000 0' 0 75 1 F 0) m 0 ei 2) 'M O 444,5 0 N Cn tl v [2° Jr.: rQ� hko- 0) tl ag Qi A A A RN .g2 d O a N;,w °a ovig ala 0,8 `� _ 8 O Ao• oo.04 t.0 Qi dJu- 0)'^ a�Bo pi 4 2480 10 WA r+,1¢O a >>o 11 1,1 ,it .e ox, m b r0421ME qO d4 abo42i A ''NFwGtl .S� .O. 0 }}+}8 M., — 1. .d q1' h 1 01 1 tlgogo.ai m ra a 11 0.0 . m City of Des Plaines— Mannheim/Higgins TIF m a 0 A 6,3� Y ° 1 3 ° u E R 9 C a O $ p O rns 8 i • 2 ; A 5 a E ;a 0 'R a 3 g . I$ s $ .GrE . bl to • T • 3 R L F. O O W v c3 .5 t a 2 • jyy a •g 11. � u a i3 c'� .§ 4 5' " a -o V ? 8 $ C 13 g g 2 2 5 j & # 8 t 5 0 5 3E3 9 O q u 8 A 5 8 5 5 e • 2 a • .8 q • s c $$ ^ 3 5 _8 3l $ 8 ,s e ff a tc 1 B a 5 d a 1. ; 1 El e 'a 2 8. $ ig o a -0_ 1, a o 5 8 1 r2 y ,5 G q p, 8 Ss .2U 2 • dat.y •1 .3 8. ''.5 ..1'' t SnI 1 n 3' ''g t o 4 • 8a a 5 1 .8 5 8 .3 11 0 8 5 .5 i 3 . •5 SD 0 E 8 .5 .1 8 t to Section 11-74.4-6 9 8 s e v s 1 8 v of 1heMunicipaliry as a whole. aRR m1•£ 1 a '4 g 4.. l sop 4 .,, ,5 s 1 i , 2i t o 3 -p ° 0 9 ,,� 2 1 s � � Z. 1 ; . 4 `_ O & t Z 1 .5 w a. 6 7 ,„. yu 1 o Gy .4 'S 5 s, .8E C �° ;� a g Q w B O i 6 = O 5 ,, i 8 i 1 .5 .5 5 " t W a 3 Q B . .0 o A tot 8 b 2 p',. E E P u kl C `d 'o e O 4 .8' g v H ��o{{ 1 ai pop '8 5 ,9 i k 8 1 s l 'Q J o n ii -Y o € : 5 O ;f 8 ' d •oc ' o v fl W g $ 3 s..gv u : 1 A g 4 > C 6 2 a U o/� 1-8,8 5 .4 p 9 5 5 .9 0i iT $ k S. o y $ °q C e I. • ' 1-° .8 g : .5 F` ti 1 1 .2 I 1 o e a 1 ¶ N 0 in in x 0 a 0 LEGAL DESCRIPTION • pp�]� P9 O H 0 0 O co In N 0 co O 0 Al mum• y�� m ' �lil�ll{a�(Il � M11911.iu ;► r7 1Ri;ll1 nIone il/�5�'. •� '1: MinCinar• WI man "‘"n idollni O n111 X 0 tsl M 4 vi !` oo T P. A t, rn O c.1 v to co et a t7 Q 4 (14 U U d O .1 0 4 F ai 2 4 PO 4 fV 4 gcg O-13' 154 =` tg 0 bb s ao 1g. '.�r 1S1,c 8 g'5.g E 0 LI H M � w pa .v8'55 44H: u o1T yy E+: '8 o " R V O'O 8 'iv,' O •O v ") •a .q 3TioSI' �a a. 02505 A5g:0> ao agi 4 o u > a. q ash §.4 0•u° 5 tf. 0110. P.qu > a _ ° a[°ga�a5 V 6 O$ a q . 0• 5 q °a>a° • 5 04'4'5! at, O Qs 54) .4 a .5 W 00 0 V v""g 2 vo , .0 0 •q A 08 148100 g. W U q4 1-g 10.. N G O .',:i Eq a 21 0w t 0 ilMA es E U W N 0,0 > b 0. 0 0O 1ay Uq .1 ° 9„''1 "4ma•^^°oa�1 go b'S itl�ual'•o6a �ll ' so 1�oa'0r88 a1-15:)-+;‘411:3-0:°0810QS 48 0. o '. • . U u.91, US, a eO•U ;PQto q5U °tg4'gg p..aO7. g,Et OO.. 4 1 U: F p n el 0 ig v. Sv° tlp° a:f'07F all,d _ y1'•�vge�vAyioo$?agm�$h .74' .0p8'o d $o o 74 1 d ;qs J 0�"4S°qaIiT4g13R3r�1 S ao �,I'�V+stEl9 °ao909�aAa2mci-,a8.8 .'-roagC°9a i5S a '�' ti v. '-‘91°°2-4,2 •J �. w F�. A a G•S a 0. W '�O a A l �Hy vl py/ 4I 0 p w' .0 UP g 041 64.10 U U .3,089 A”'-2 '2 a U O cEu 4.9 oma4g N1715. .• 0q AFL?: .e5 U W U U g w Redevelopment Project Area Overview N o 3 7.21 0 ,43 o 0 o. gar?: • W C •O 1.81 81A � gcl tit N U -r10 11.20 5 3.5 0 go 'P.."2 .Qr N o . •1 § o I't 3 2°> a u 'u Q 'S I m yo o.•� a 09 8 .• 2A' u a Eg `d o TS. oo 0 ° H. A m a> g 13 g 1 g� g. p d E W g q .g8 0 go :°.:4‘ a E a'c 51 • 'd u yaog e r : iS •d duiih • t41 °o:3 0oc'N.8 8 v• 41 1111 g4;, rt "RA .88v8° H ' • a�aa t. Y1 a a .81-... a,ex e§'y,� oau 724“g 21 Ce) g aso W e � 1 g•at «'.4 l 1. d 0 a. y� a� 8 xa 2 - 11"...g: Ev 3w° -Ru u 'a.3a ooa., �.:fi 0l8 g u ossa o 8 o, g o 'SLB a ....0 igl '��gjj."c a. o°. a80 `ds'o.g O N u.a.41'1 W A la .gE u. "�'$°oi.8 A0 8 8 y��°. u u b88 7,,,0 fa„0 ° > 4'$vs ° 8 •« a u e g 0 .o0E 3 °o 'gsvacna •o5go.9 „i 8 o 0 p 8 . 1 04 1 >ooa wg •g•�gl a$.u3 hoXiu ¢o.0 oom� 4qH 4$141 Access and Circulation A tz 1 i A g ato 1 g 0 o o. 8 '+ O p C. o v 0 ti o g a w°.•1d 'a'�pg w pp 1 a. u, .11 A EI Io 133 °6ao;,uu 'g a� . 4 § o 8•G ° >^'2 o oIn 3YT'oa�raw caa oFaw" 4-3 a h m 0 rz, L. b •tl V u G 3. ° .c T°t g x°'4.3 itl O ° ° o u a w[ la .. 1101112I. - i.° a .1:° a'aa a n1.812 . C q m u u 'O v q>p� c'�i u !Haile o �. bQ Ua�°° Is a flflHh No�Y, 1. g7 ` a1.o414 •Il A,.4 u :o^ ° k 8 o d0o F i o e . .zlo ails u o w I uuj yN auU" a,•o o •w $'0 WO O., 7'.t. `� C T ell., N O O F 'UJ3 9r . I i1wb Fti uz Vi A •E7 g p nu V .x,q., u §1., .7 . p� y g a t o El .«^! p G..t Y C. 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U 0 0 U LTa r-, U a P. P zO W bar A O 0 O 0 STATE OF ILL CERTIFICATE EPER OF RECORDS AND FILES CERTIFICATE AS ..... o 00 U o > 2-20 C x O 0 O O 0 0 O c 0 r. N A 0 0 .,.-1,....... � .. 00 o ,. a 00 0 0 0 O 0 44 F F O 0 0 0 '8 x0 o o E' 3 c� .n' > w o x .aa04 pap., U Q o U o. 1wwp .5 ..ZAa 0 o 4 d z ao :ow9gw 8 ° 0 a+ O ffi Z a a 73 73 o 0 A a U Eia -a .0 .>A y y,' w0.o -5 o Mi W g4 a N ° U y N F" w p '° •' U * O W U •3 0 '046 i _ 0 Nw c4 .c 13 0 ac w U • v b 0 • 0 � 0 0 Z a 0. 0 a tib; a o o U v o 4.6 V .a R m y s. 79 0 N P, g.0 a o 'a E 0 m .0 q • 0, 8 .o z o a p>, p U w M 0 N 0 g 4-4 4 O ri O N 174 cg wo a.0 • a O " a3.52 o H a 8 O U DATED at Des Plaines, Illi all of which appears from the records and files of my office. OF I have hereunto set my hand and IN WITNESS W1 -IE co EXHIBIT B CITY OF DES PLAINES TAX INCREMENT FINANCING DISTRICT JOINT REVIEW BOARD MEETING MINUTES PROPOSED FIRST AMENDMENT TO TIF DISTRICT NO. 6 AUGUST 20, 2014 I. Call to Order George Sakas opened the meeting at 9:59 a.m., introduced himself, & welcomed everyone to today's meeting. II. Introduction of Representatives (in attendance) Michael Bartholomew Mary Kalou Walter Kazmierczak Karen Stephens Nelson Gray Barry Collins Bob Rychlicki George Sakas Dorothy Wisniewski Linda Krania Chan Yu Lauren Griffin Karl Camillucci City Manager, City of Des Plaines Assistant Superintendent, District 207/Maine Township Trustee, Maine Township Director of Parks & Recreation, Rosemont Park District Assistant Superintendent, District 62/City of Des Plaines Public Member TIF Consultant, Kane McKenna & Associates, Inc. Director, City of Des Plaines Finance Director, City of Des Plaines Media Director, City of Des Plaines Associate Planner, City of Des Plaines Administrative Assistant, City of Des Plaines City Attorney, Holland & Knight III. Selection of Public Member George Sakas noted Public Member, Barry Collins. IV. Selection of Chairperson George Sakas volunteered to be today's Chairperson. A motion was made by Barry Collins, seconded by Nelson Gray, to elect and confirm Director, George Sakas, as Chairperson for the meeting. AYES: All NAYS: None Motion: CARRIES V. Review of Joint Review Board Procedures & Duties George Sakas turned this portion over to Bob Rychlicki who stated the JRB is advisory, & the decision/approval of this amendment will be by City Council. The JRB has 30 days to make recommendations of today's amendment: 1. JRB may agree with the City of Des Plaines' findings 2. JRB may disagree with the City of Des Plaines' findings (& must be specific in writing; may extend longer than a 30 -day period; after second 30 days, a 3/5's majority vote is required) 3. No decision (defers to #1 above) VI. Amended TIF Plan — Review (refer to handout) Bob Rychlicki noted Proposed TIF District No. 6 which includes vacant & underutilized industrial properties as well as commercial properties currently developed north of Pratt Avenue. He stated for the redevelopment south of Pratt, due to the economic downtown, equalized assessed evaluation/EAV has been below the base & did not come to fruition. Boundaries were referenced & a map was illustrated. Bob Rychlicki stated that the amendment would remove properties south of Pratt to become TIF District No. 7 (with the exclusion of McDonald's). The date for TIF termination would not change (23 years). Final payment would be in 2025. Existing budget & land uses are not amended. Proposed contiguous TIF District No. 7 with a longer term is structured to assist in redevelopment of underutilized property & assist TIF District No. 6's existing obligations. The City staff has reviewed this carefully. TIF District No. 6 won't be as dense. TIF District No. 7 makes more of a difference; increases cash flow. The budget is not being amended. This is a 23 -year budget. Overall budget cannot be exceeded. Line items are flexible; City staff may adjust cost between line items Next steps include a Public Hearing on September 15, 2014. Notices have been submitted. Barry Collins inquired if any new developments are expected. Bob Rychlicki responded there are none at this time. Walter Kazmierczak asked if McDonald's would be included. It was stated that McDonald's would go back to the regular tax base. The interest is single -story retail or commercial. Michael Bartholomew stated there would not be enough development. Bob Rychlicki concurred stating that the base was set on the previous levels; market value has changed. By reducing the base, the bar is being lowered (less density); another 10-12 years of cash flow. VII. Review of Draft TIF Amendment Ordinances City Attorney, Karl Camillucci, reviewed the above & stated there are typically 3 ordinances. Since TIF District No. 6 is being amended, this approves the plan, & financing is available. Thus this will bring only 1 ordinance. Exhibits were referenced (of properties being removed & those remaining). Bob Rychlicki noted that all the materials are in everyone's folder. George Sakas advised this ordinance would be passed by City Council on October 6, 2014. VIII. Questions/Comments George Sakas asked if there are any questions or comments. Karen Stephens stated due to the widening of 90/toll way, a section is being purchased by the state from Rosemont. George Sakas advised this is a boundary & public right-of-way. Mary Kalou inquired if the current EAV pulls out parcels. Bob Rychlicki replied yes. Barry Collins inquired if the base EAV being $2.1 million & projected EAV being $4.5 million are for 2024? Bob Rychlicki responded in the affirmative. Nelson Gray asked if this date will be extended. George Sakas advised TIF District No. 6 will expire & TIF District No. 7 will be 23 years. Walter Kazmierczak stated recent TIF (Rand & Golf) concessions were made prior to 23 years, & asked if this is based similarly. George Sakas advised yes, & stated there is an agreement which will be discussed in the TIF District No. 7 meeting. Bob Rychlicki added that TIF District No. 6 will run its course without any distribution. Nelson Gray asked if there's a budget change. Bob Rychlicki advised the budget could be smaller. There are $10+ million in bond obligations. Bob Rychlicki stated the plan amendments refer to the altered geography. IX. Consideration of Resolution Recommending Approval of the First Amendment to the Redevelopment Plan and Project for the Des Plaines TIF District No. 6 George noted the handouts/ordinance & resolution entitled: • An Ordinance Approving An Amended Tax Increment Redevelopment Plan and Project for the Higgins Road/Mannheim Road Redevelopment Project Area • A Resolution Recommending Approval of Proposed Amendments to the Redevelopment Project Area and the Redevelopment Plan and Project for the Higgins Road/Mannheim Road Redevelopment Project Area. George Sakas referenced Option 1 on the Resolution document and read Section 2: Recommendation: A. The Redevelopment Project Area, as amended pursuant to the Proposed Amendments, satisfied the requirements of the proposed amended Redevelopment Plan and Project for the Redevelopment Project Area, and fulfills the objectives of the Act, and, accordingly, the Joint Review Board recommends that the City Council approve the Proposed Amendments. X. Review of Timetable and Next Steps George Sakas noted TIF's 6 and 7 Schedule (multi -colored chart) highlighting October 6, 2014 as the date to pass the ordinance & December 17, 2014 as the last date for City Council to adopt the TIF Ordinances. George Sakas advised the next Annual JRB meeting is slated for October 14, 2014. XI. Adjournment A motion was made by Walter Kazmierczak, seconded by Barry Collins, to adjourn the meeting at 10:28 a.m. AYES: All NAYS: None Motion: CARRIES Respectfully submitted, Gale Cerabona Recording Secretary I. CITY OF DES PLAINES TAX INCREMENT FINANCING DISTRICT ANNUAL JOINT REVIEW BOARD MEETING MINUTES NOVEWMBER 5, 2014 Welcome by City Representative George Sakas introduced himself & welcomed everyone to today's meeting. II. Call to Order George Sakas opened the meeting at 10 a.m. at City Hall, 1420 Miner Street, Room 101, Des Plaines, IL III. Roll Call (in attendance) Michael Bartholomew Mary Kalou Walter Kazmierczak Karen Stephens Nelson Gray Bill Dussling Sherry Koerner Ruth Gloede George Giese John Bellows Don Miletic Katie Skibbe Barry Collins Also Attended: George Sakas Dorothy Wisniewski Linda Krania Jon Duddles Dick Sayad Chan Yu Lauren Griffin Bob Rychlicki Gale Cerabona City of Des Plaines, City Manager Assistant Superintendent, School District 207 Trustee, Maine Township Rosemont Park District, Director of Parks & Recreation Assistant Superintendent; School District 62 School Board President, School District 214 Director of Business Services, School District 214 Assistant Superintendent, School District 59 FOIA Officer, Mt. Prospect Park District Human Resources, Mt. Prospect Executive Director, Des Plaines Park District Superintendent of Business, Des Plaines Park District Public Member Director of Community & Econ. Dev., City of Des Plaines Director of Finance, City of Des Plaines Director of Media, City of Des Plaines Asst. Dir. of Publ. Works&Engineering, City of Des Plaines Alderman / City Council, City of Des Plaines Associate Planner, City of Des Plaines Administrative Assistant, City of Des Plaines Kane McKenna & Associates, Inc. / TIF Consultant Recording Secretary IV. Election/Confirmation of Public Member A motion was made by Michael Bartholomew, seconded by Don Miletic, to elect & confirm Barry Collins as Public Member for the meeting. On a voice vote: AYES: All NAYS: None Motion: CARRIES V. Election/Confirmation of Chair A motion was made by Michael Bartholomew, seconded by Barry Collins, to elect and confirm Director, George Sakas, as Chair for the meeting. On a voice vote: AYES: All NAYS: None Motion: CARRIES VI. Approval of Minutes of Previous Joint Review Board Meetings George Sakas advised today's agenda includes the TIF 6&7 minutes (2013 & 2014). A motion was made by Nelson Gray, seconded by Barry Collins, to approve the August 27, 2013, minutes with correction of typo on page 3, under TIF District No. 1, 3d paragraph, to be spelled as "main". On a voice vote: AYES: All NAYS: None Motion: CARRIES A motion was made by Mary Kalou, seconded by Michael Bartholomew, to approve the August 20, 2014, minutes for TIF District Nos. 6 & 7. On a voice vote: AYES: All NAYS: None ABSTAIN: Dussling Motion: CARRIES VII. Review of Activities in District George Sakas stated he wishes to rearrange the agenda to begin with TIF District No. 3. There were no objections. TIF District No. 3 Overview Bob Rychlicki stated the format is the same regarding content (State Comptroller's Office provides report to City of Des Plaines). Certifications were noted (Section 1). Certifications were identified from the Mayor (page 7) & the City Attorney (page 9). Exhibit C (or D) was referenced along with the City's audit; dollars are spent in compliance. Activities were noted (Section 2). There were no amendments. Debt, refunding issue were noted. In the last component of the report (page 18), the City identified fiscal activity. $489,000 TIF revenue was received, bonds are at $579,937 for an approximate total of $1,069.000. 95% is utilized for debt services. Revenues were noted. Equalized Assessed Value/EAV is noted (page 30); a 35 -year TIF assessed valuation is just over $10 million. Ruth Gloede stated/asked: • in 2011, it was 12.4, in 2012 it was 11.1, and in 2014 it's 10.0 which is not unusual; Bob Rychlicki concurred. • asked if there are new incentives for industrial properties. Michael Bartholomew stated — not at this time; 2 incentives are already in place. • asked about the following, & Dorothy Wisniewski responded: Bond Type AA2 Interest Rate 5.85% originally, now 2.25% Bill Dussling asked: • if redevelopment of the TIF is complete. Bob Rychlicki responded — yes • if the original TIF was for 14 years, and it's now 35 years. Bob Rychlicki advised — yes • if this TIF is contiguous with others. Bob Rychlicki responded — no George Sakas asked if there were any questions; there were none. TIF District No. 1 Overview Bob Rychlicki noted certifications are the same. From 1/31/2013-12/31/2013, there were no amendments, no redevelopments, & no bond issues. TIF District No. 3 was included. The City took on various projects (pages 18-19). This is the City's oldest & largest TIF (land mass & tax parcels) -- $4,797.68. Amounts for utilization were contractual. Public improvements, new construction total $6,796,374. The City's obligations were noted (page 26); outstanding bonds & new projects (page 41). Base EAV is over $20 million; last tax year was over $75 million. Mary Kalou asked what we billed. Michael Bartholomew advised — it goes from building storefront to sidewalks to water main work. Barry Collins asked if this streetscape project will continue in 2014. Jon Duddles replied -- this is in 7 phases. Nelson Gray asked if the TIF will end early. Michael Bartholomew responded — this has not been discussed. Don Miletic asked if more properties will be purchased. Michael Bartholomew stated — nothing is on the table. TIF District No. 4 Overview Bob Rychlicki stated there was no activity, amendments, refunding, redevelopments, or acquisitions. This TIF impacts the downturn (page 18); very minimal earnings of $1,900 + $1 interest. Dollars were based on last year's installment. There is a positive fund balance. Base EAV (page 30) was $42 million. Now EAV is below that. No increment is noted for next year. George Sakas referred to the October notice indicating the dissolving of the TIF. Barry Collins asked if there's been any qualifying interest in development. Michael Bartholomew stated — yes, there was interest early on but no commitment. Bob Rychlicki noted that financing & interest has dried up. TIF District No.5 Overview Bob Rychlicki noted this is the City's smallest district. Has the same series of certifications. Status quo on the plan. No property acquired. There has been a downturn (page 18) -- $94,000 last year. City's obligations, bonds were noted (page 25). EAV (page 30) is over the base — in excess of $3 million. Property is still occupied; does cover debt service. George Sakas asked if there were any questions; there were none. TIF District No. 6 Overview George Sakas noted this is a 2013 report. Bob Rychlicki noted the City amended TIF District No. 6 & added TIF District No. 7 (based on financial downward trend). Same series of certifications. No activities, redevelopment agreements. Lack of development (page 18); over $7,000 received. Fiscal activity was noted with debt service payments. The districts & review prompted the changing of boundaries & development. Amendments were noted (page 30). George Sakas asked if there were any questions. Nelson Gray asked about the interest rate & Dorothy Wisniewski responded — 2.3%. VIII. Review of 2013 State Comptroller's Report There was none. IX. Questions from Board, Audience Members There were none. George Sakas requested the next meeting to be in August, 2015. These TIFs along with TIF District Nos. 4 & 7 will be included. X. Adjournment A motion was made by Michael Bartholomew, seconded by Barry Collins, to adjourn the meeting at 10:35 a.m. On a voice vote: AYES: All NAYS: None Motion: CARRIES Respectfully submitted, Gale Cerabona Recording Secretary EXHIBIT C New Issue Investment Rating: Moody's Investors Service ... Aa2 Final Official Statement Dated August 18, 2014 In the opinion of Katten Muchin Rosenman LLP, Chicago, Illinois, Bond Counsel, interest on the Series 2014A Bonds IS subject to federal taxation. See "CERTAIN FEDERAL INCOME TAX CONSIDERATIONS - THE SERIES 2014A BONDS" herein for a more complete discussion. The delivery of the Series 2014B Bonds is subject to the opinion of Katten Muchin Rosenman LLP, Bond Counsel, to the effect that under existing law, interest on the Series 2014B Bonds is not includable in the gross income of the owners thereof for federal income tax purposes and that, assuming continuing compliance with the applicable requirements of the Internal Revenue Code of 1986, interest on the Series 2014B Bonds will continue to be excluded from the gross income of the owners thereof for federal income tax purposes. Interest on the Series 2014E Bonds is not an item of tax preference for purposes of computing individual or corporate alternative minimum taxable income, but must be taken into account as earnings and profits of a corporation when computing, for example, corporate minimum taxable income for purposes of the corporate alternative minimum tax. See "TAX EXEMPTION - THE SERIES 2014B BONDS" herein. Interest on the Series 2014B Bonds is not exempt from present Illinois income taxes. CITY OF DES PLAINES Cook County, Illinois $2,020,000 Taxable General Obligation Refunding Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B Dated Date of Delivery Book -Entry Non -Callable Due Serially as Detailed Herein The $2,020,000 Taxable General Obligation Refunding Bonds, Series 2014A (the "Series 2014A Bonds") and the $5,600,000 General Obligation Refunding Bonds, Series 2014B (the "Series 2014B Bonds", and together with the Series 2014A Bonds, the "Bonds") are being issued by the City of Des Plaines, Cook County, Illinois (the "City"). Interest is payable semiannually on June 1 and December 1 of each year, commencing December 1, 2014. Interest is calculated based on a 360 -day year of twelve 30 -day months. The Bonds will be issued using a book -entry system. The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Bonds. The ownership of one fully registered Bond for each maturity will be registered in the name of Cede & Co., as nominee for DTC and no physical delivery of Bonds will be made to purchasers. The Bonds will mature on December 1 as detailed herein. OPTIONAL REDEMPTION The Bonds are not subject to optional redemption prior to maturity. PURPOSE, LEGALITY AND SECURITY The Series 2014A Bond proceeds will be used to currently refund the City's outstanding Taxable General Obligation Bonds, Series 2003C due December 1, 2014-2021 and to pay the costs of issuing the Series 2014A Bonds. See "PLAN OF FINANCING - The Series 2014A Bonds" herein. The Series 2014B Bond proceeds will be used to currently refund the City's outstanding General Obligation Bonds, Series 2005A due December 1, 2017- 2022, a portion of the City's outstanding General Obligation Bonds, Series 2005D due December 1, 2015-2018 and to pay the costs of issuing the Series 2014B Bonds. See "PLAN OF FINANCING - The Series 2014B Bonds" herein. In the opinion of Katten Muchin Rosenman LLP, Chicago, Illinois, Bond Counsel, the Bonds will constitute valid and legally binding obligations of the City payable both as to principal and interest from ad valorem taxes levied against all taxable property therein without limitation as to rate or amount, except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting creditors' rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. The Series 2014B Bonds are "qualified tax-exempt obligations" under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. See "QUALIFIED TAX-EXEMPT OBLIGATIONS - THE SERIES 2014B BONDS" herein. This Final Official Statement is dated August 18, 2014, and has been prepared under the authority of the City. An electronic copy of this Final Official Statement is available from the www.speerfinancial.com web site under "Debt Auction Center/Competitive Official Statement Sales Calendar". Additional copies may be obtained from Ms. Dorothy Wisniewski, Director of Finance/Treasurer, City of Des Plaines, 1420 Miner Street, Des Plaines, Illinois 60016, or from the Independent Public Finance Consultants to the City: Established 1954 Speer Financial, Inc. INDEPENDENT PUBLIC FINANCE CONSULTANTS ONE NORTH LASALLE STREET, SUITE 4100 o CHICAGO, ILLINOIS 60602 Telephone: (312) 346-3700; Facsimile: (312) 346-8833 www. speerfinancial. corn J No dealer, broker, salesman or other person has been authorized by the City to give any information or to make any representations with respect to the Bonds other than as contained in the Official Statement or the Final Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized by the City. Certain information contained in the Official Statement and the Final Official Statement may have been obtained from sources other than records of the City and, while believed to be reliable, is not guaranteed as to completeness. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE CITY SINCE THE RESPECTIVE DATES THEREOF. References herein to laws, rules, regulations, ordinances, resolutions, agreements, reports and other documents do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference to the particular document, the full text of which may contain qualifications of and exceptions to statements made herein. Where full texts have not been included as appendices to the Official Statement or the Final Official Statement, they will be furnished on request. This Official Statement does not constitute an offer to sell, or solicitation of an offer to buy, any securities to any person in any jurisdiction where such offer or solicitation of such offer would be unlawful. (i) TABLE OF CONTENTS Page BOND ISSUE SUMMARY 1 THE SERIES 2014A BONDS 2 THE SERIES 2014B BONDS 3 CITY OF DES PLAINES 4 THE CITY 4 City Government and Services 4 Transportation 5 Community Life 5 Education 5 SOCIOECONOMIC INFORMATION 6 Population 6 Employment 6 Building Permits 8 Housing 8 Income 9 Retail and Commercial Activity 10 Industrial Activity 11 Entertainment 11 Sales Taxes 12 PLAN OF FINANCING 13 The Series 2014A Bonds 13 The Series 2014B Bonds 13 DEBT INFORMATION 15 PROPERTY ASSESSMENT AND TAX INFORMATION 18 REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES 19 Real Property Assessment 19 Equalization 21 Exemptions 22 Tax Levy 24 Property Tax Extension Limitation Law 24 Extensions 24 Collections 25 Truth in Taxation Law 26 FINANCIAL INFORMATION 26 Financial Reports 26 Investment Policy 27 No Consent or Updated Information Requested of the Auditor 27 Summary Financial Information 27 EMPLOYEES' RETIREMENT SYSTEM 32 OTHER POST EMPLOYMENT BENEFITS 32 REGISTRATION, TRANSFER AND EXCHANGE 32 Registration 32 Transfers and Exchanges 32 CERTAIN FEDERAL INCOME TAX CONSIDERATIONS - THE SERIES 2014A BONDS 33 TAX EXEMPTION - THE SERIES 2014B BONDS 33 Summary of Bond Counsel Opinion 33 Series 2014B Bonds Purchased at a Premium or a Discount 34 Exclusion From Gross Income Requirements 34 Risks of Non -Compliance 35 Federal Income Tax Consequences 35 QUALIFIED TAX EXEMPT OBLIGATIONS - THE SERIES 2014B BONDS 35 TABLE OF CONTENTS (Continued) Page CONTINUING DISCLOSURE 35 OPTIONAL REDEMPTION 37 LITIGATION 37 LEGAL MATTERS 37 FINAL OFFICIAL STATEMENT AUTHORIZATION 38 INVESTMENT RATING 38 DEFEASANCE AND PAYMENT OF BONDS 38 UNDERWRITING 39 FINANCIAL ADVISOR 39 CERTIFICATION 39 APPENDIX A - EXCERPTS OF FISCAL YEAR 2013 AUDITED FINANCIAL APPENDIX B - DESCRIBING BOOK -ENTRY -ONLY ISSUANCE APPENDIX C - PROPOSED FORM OF OPINION OF BOND COUNSEL APPENDIX D - EXCERPTS OF FISCAL YEAR 2013 AUDITED FINANCIAL RELATING TO THE CITY'S PENSION PLANS STATEMENTS STATEMENTS City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bands, Series 2019A $5,600,000 General Obligation Refunding Bonds, Series 201913 BOND ISSUE SUMMARY This Bond Issue Summary is expressly qualified by the entire Final Official Statement which is provided for the convenience of potential investors and which should be reviewed in its entirety by potential investors. The following descriptions apply equally to the Series 2014A Bonds and the Series 2014B Bonds. Other terms specific to each series are provided separately herein. Issuer: City of Des Plaines, Cook County, Illinois. Dated Date: Date of delivery, expected to be on or about September 4, 2014. Interest Due: Each June 1 and December 1, commencing December 1, 2014. No Optional Redemption: The Bonds are not subject to optional redemption prior to maturity. Authorization: The City is a home rule unit under the Illinois Constitution and as such has no debt limitation and is not required to seek referendum approval to issue the Bonds. Security: The Bonds are valid and legally binding general obligations of the City and the City is obligated to levy ad valorem taxes upon all the taxable property within the City for the payment of the Bonds and the interest thereon without limitation as to rate or amount. However, the enforceability of rights or remedies with respect to the Bonds may be limited by bankruptcy, insolvency or other laws affecting creditors' rights and remedies heretofore or hereafter enacted. Credit Rating: The Bonds has been rated "Aa2" from Moody's Investors Service, New York, New York. Bond Registrar/Paying Agent/ Escrow Agent: Amalgamated Bank of Chicago, Chicago, Illinois. Verification Agent: Dunbar, Breitweiser & Company, LLP, Bloomington, Illinois. Delivery: The Bonds are expected to be delivered on or about September 4, 2014. Book -Entry Form: The Bonds will be registered in the name of Cede & Co. as nominee for The Depository Trust Company ("DTC"), New York, New York. DTC will act as securities depository of the Bonds. See APPENDIX B herein. Denomination: $5,000 or integral multiples thereof. Financial Advisor: Speer Financial, Inc., Chicago, Illinois. 1 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014,4 $5,600,000 General Obligation Refunding Bonds, Series 20I4B THE SERIES 2014A BONDS Issue: $2,020,000 Taxable General Obligation Refunding Bonds, Series 2014A. Principal Due: Serially each December 1, commencing December 1, 2014 through 2021, as detailed below. Purpose: No Tax Exemption: The Series 2014A Bond proceeds will be used to currently refund the City's outstanding Taxable General Obligation Bonds, Series 2003C due December 1, 2014-2021 and to pay the costs of issuing the Series 2014A Bonds. See "PLAN OF FINANCING - The Series 2014A Bonds" herein. None. Interest on the Series 2014A Bonds is includible in gross income for federal income tax purposes. See "CERTAIN FEDERAL INCOME TAX CONSIDERATIONS - THE SERIES 2014A BONDS" herein. Interest on the Series 2014A Bonds is not exempt from present State of Illinois income taxes. AMOUNTS, MATURITIES, INTEREST RATES, YIELDS AND CUSIP NUMBERS Principal Due Interest Principal Due Interest Amount Dec. 1 Rate Yield CUSIP(1) Amount Dec. 1 Rate Yield CUSIP(1) $140,000 2014 1.000% 0.300% 250217 H82 $260,000 2018 1.900% 1.900% 250217 J49 200,000 2015 1.000% 0.600% 250217 H90 290,000 2019 2.150% 2.150% 250217 J56 220,000 2016 1.000% 0.900% 250217 J23 315,000 2020 2.400% 2.400% 250217 J64 240,000 2017 1.400% 1.400% 250217 J31 355,000 2021 2.600% 2.600% 250217 J72 (1) CUSIP numbers appearing in this Final Official Statement have been provided by the CUSIP Service Bureau, which is managed on behalf of the American Bankers Association by Standard & Poor's, a division of the McGraw-Hill Companies, Inc. The District is not responsible for the selection of CUSIP numbers and makes no representation as to their correctness on the Bonds or as set forth in this Final Official Statement. 2 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B THE SERIES 2014B BONDS Issue: $5,600,000 General Obligation Refunding Bonds, Series 2014B. Principal Due: Serially each December 1, commencing December 1, 2014 through 2022, as detailed below. Purpose: Tax Exemption: Bank Qualification: The Series 2014B Bond proceeds will be used to currently refund the City's outstanding General Obligation Bonds, Series 2005A due December 1, 2017- 2022, a portion of the City's outstanding General Obligation Bonds, Series 2005D due December 1, 2015-2018 and to pay the costs of issuing the Series 2014B Bonds. See "PLAN OF FINANCING - The Series 2014B Bonds" herein. Katten Muchin Rosenman LLP, Chicago, Illinois, will provide an opinion as to the tax exemption of the interest on the Bonds as discussed under "TAX EXEMPTION - THE SERIES 2014B BONDS" in this Final Official Statement. Interest on the Bonds is not exempt from present State of Illinois income taxes. The Bonds are "qualified tax-exempt obligations" under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. See "QUALIFIED TAX-EXEMPT OBLIGATIONS - THE SERIES 2014B BONDS" herein. AMOUNTS, MATURITIES, INTEREST RATES, YIELDS AND CUSIP NUMBERS Principal Due Interest CUSIP Principal Due Interest CUSIP Amount Dec. 1 Rate Yield Number(1) Amount Dec. 1 Rate Yield Number(1) $ 10,000 2014 2.000% 0.150% 250217 J80 $440,000 2019 2.000% 1.400% 250217 K54 725,000 2015 2.000% 0.390% 250217 J98 445,000 2020 2.000% 1.650% 250217 K62 750,000 2016 2.000% 0.580% 250217 K21 455,000 2021 2.000% 1.900% 250217 K70 1,145,000 2017 2.000% 0.800% 250217 K39 465,000 2022 2.250% 2.100% 250217 K88 1,165,000 2018 2.000% 1.050% 250217 K47 (1) CUSIP numbers appearing in this Final Official Statement have been provided by the CUSIP Service Bureau, which is managed on behalf of the American Bankers Association by Standard & Poor's, a division of the McGraw-Hill Companies, Inc. The District is not responsible for the selection of CUSIP numbers and makes no representation as to their correctness on the Bonds or as set forth in this Final Official Statement. 3 City of Des Plaines, Cook County, Illinois $2,020,000Tarable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 20148 CITY OF DES PLAINES Cook County, Illinois Matthew Bogusz Mayor Aldermen James Brookman John Robinson Dick Sayad Michael Charewicz Denise Rodd Vacancy Patricia Haugeberg Mark Walsten Officials Dorothy Wisniewski Michael G. Bartholomew Director of Finance City Manager Gloria J. Ludwig City Clerk THE CITY Holland & Knight Issuer's Counsel The City of Des Plaines (the "City") is located in northwestern Cook County and covers an area of approximately 14.3 square miles. The 2010 Census reported a population of 58,364, an increase of approximately 2.5 % from the 2000 Census population of 56,945. The Chicago Metropolitan Agency for Planning (CMAP) population projection for 2040 is 79,389. Bordering the City to the north and west is the Village of Mount Prospect, to the south is the Village of Rosemont and O'Hare International Airport, and to the east is the City of Park Ridge, the Des Plaines River and surrounding forest preserve area. The City has an above average residential property tax base which is supplemented by substantial commercial and industrial real estate development. Close proximity to O'Hare International Airport has supported the growth in high-rise office buildings in the City. Approximately 40 % of the City's property values are composed of diversified commercial and light industrial properties. City Government and Services The City operates under a City Manager form of government approved by voter referendum on November 16, 2004. The City Manager is appointed by the Mayor upon the advice and consent of the City Council. The Mayor and the City Clerk are elected at large for four-year terms. The City Council consists of eight aldermen elected from eight wards for staggered four-year terms. The City employs a total of 355 full-time personnel and 14 part-time employees, for a total of 369 full-time equivalents. Police protection is provided by the Des Plaines Police Department which consists of 95 (authorized 96) sworn police officers and operates out of one central police station. The Fire Department, consisting of 92 sworn firefighters, provides fire protection to the City's residents. The Department operates out of three stations. The City has a Class 2 fire insurance rating, which ranks it among the top 2.58 percent of fire departments in the State and the top 1.65 percent of fire departments in the nation. 4 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B The City has six (6) recognized collective bargaining units. Agreements are typically negotiated for multi-year terms. The City has been and is currently in negotiations with the police officers (Metropolitan Alliance of Police Des Plaines Chapter No. 240), that continue to work under the agreement that expired on December 31, 2011. The police sergeants/lieutenants (Metropolitan Alliance of Police Des Plaines Police Command Chapter 241) agreement expires on December 31, 2014, the public works employees (Municipal Employees City Coordinating Association) agreement expires on December 31, 2015, the city-wide clerical and technical employees (American Federation of State, County and Municipal Employees) agreement expires on December 31, 2015, the emergency dispatchers (Metropolitan Alliance of Police Civilian Chapter No. 282) agreement expires on December 31, 2015, and the firefighters/lieutenants (International Association of Fire Fighters Local 4211) agreement expires on December 31, 2016. The City operates its own water system providing Lake Michigan water purchased from the City of Chicago, with sewage treatment provided by the Metropolitan Water Reclamation District. Natural gas is provided by Nicor, electricity is provided by Commonwealth Edison, and telephone service is provided by Call One. Transportation The City is located approximately 20 miles northwest of downtown Chicago. Commuter travel to and from Chicago's downtown is available via the Regional Transportation Authority's METRA Northwest line, with commuter stations located in downtown Des Plaines and at the Cumberland depot; as well as the Wisconsin Central freight line, combined into a commuter/freight rail line in 1996, connecting with O'Hare Airport and Chicago. Also easily accessible to the City are the Northwest Tollway (I-90) and the Tri-State Tollway (I-294). In addition, the close proximity of O'Hare International Airport to the City makes air travel convenient. Community Life Recreational opportunities are primarily provided by the Des Plaines Park District, a separate governmental entity. The Park District owns 281 acres and leases an additional 100 acres of park land and offers 53 parks and facilities, 3 outdoor swimming pools, an aquatic center, fishing, boating, picnic areas, golf and miniature golf facilities. Over 300 recreational programs and special events are available to residents through the Park District. A small portion of the City is served by the Mt. Prospect Park District. In addition, the nearby facilities of the Cook County Forest Preserve District is available for use by area residents and offers, among other activities, picnicking, hiking, bicycling, golf, and several nature centers. The Des Plaines Public Library, funded by a City tax levy, collection consists of approximately 316,000 items in an 82,000 -square foot building in centrally located downtown. The Library opened in August 2000. Circulation was approximately 1,182,000 items in 2013 with 34,347 active resident library cards. The attendance in 2013 exceeded 564,000. Education There are four elementary school districts and two high school districts providing public education for the children of City residents. The combined enrollment of Elementary School Districts 26, 57, 59 and 62 is approximately 15,000 students. High School Districts 207 and 214 reported a combined enrollment of approximately 19,000. High School District 207 serves the majority of the City residents. Higher education is provided by two community colleges. Harper Community College District Number 512 is located nearby in the Village of Palatine and has an enrollment of approximately 26,400 students. Oakton Community College District Number 535 is located in the City and has an enrollment of approximately 46,000 students. DePaul University's O'Hare campus is located in the City and offers a variety of graduate and certificate programs, as well as nontraditional programs for working adults. City residents also have access to public and private colleges and universities throughout the Chicago metropolitan area. 5 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B SOCIOECONOMIC INFORMATION Population The City experienced its greatest growth during the period of 1950 to 1980 when population more than tripled from 14,994 in 1950 to 53,568 in 1980. Since that time, population growth has been modest, with a 2000 U.S. Census population of 56,945 and a 2010 U.S. Census Population of 58,364. Potential for future growth is modest due to the generally developed character of the land within the City and the general lack of unincorporated territory contiguous to the City. Employment Following are large employers located in the City and in immediately surrounding areas. have access to employment throughout the Chicago metropolitan area. Major City Employers(1) City residents also Name Product/Service Universal Oil Products, Inc Chemical Engineering Services Rivers Casino Casino Holy Family Medical Center General Hospital Swissport USA, Inc. International Airline Cargo Service Oakton Community College Public Community College Sysco Food Services -Chicago, Inc Food Wholesalers Wheels Inc. Passenger Car and Truck Leasing W -Diamond Group Men's Apparel Abbott Laboratories, Molecular Diagnosis Division Medical Laboratories Juno Lighting, Inc. Lighting Fixtures Nu -Way Industries, Inc Sheet Metal Work Deluxe Check Printers, Inc Check and Checkbook Printing DHL Global Mail International Mailing Service Lorig Construction Co. Highway and Heavy Construction Contractor Note: (1) Source: 2014 Illinois Manufacturers Directory, 2014 Illinois Services Directory and selected telephone survey. Major Area Employers(1) Location Name Northbrook All -State Insurance Company Hoffman Estates Sears Roebuck & Co. Schaumburg Woodfield Mall (2)(3) Arlington Heights Northwest Community Hospital Arlington Heights Arlington International Race Track (4) Elk Grove Village Alexian Brothers Medical Center Hoffman Estates AT&T Midwest Approximate Employment 1,500 1,462 1,036 1,000 990 650 650 550 500 400 350 276 275 275 Approximate Business or Product Employment Insurance Corporate Office 8,000 Retail Chain Corporate Headquarters 6,200 Shopping Center 4,000 Hospital 4,000 Horse Racing, Sports 3,100 Medical Center 3,100 Communications Systems 2,500 2,500 2,045 2,000 2,000 1,953 1,800 Data Processing and Payroll Services 1,500 Integrated Health Care Services 1,400 Management Consulting Services 1,200 Plastic Products 1,200 Pediatricians Association 1,150 1,000 Schaumburg Zurich Insurance Co. Insurance Corporate Headquarters Hoffman Estates St. Alexius Medical Center Full Service Hospital Northbrook Northbrook Court Shopping Center Shopping Center Northbrook Underwriters Laboratories, Inc Industrial Not -For -Profit Research Palatine Township High School District 211 Education Buffalo Grove Siemens Building Technologies, Inc Environmental Controls Elk Grove Village Automatic Data Processing, Employer Services Schaumburg CVS Caremark Buffalo Grove I.S.I Buffalo Grove Remax Mold Manufacturing Northbrook Astellas Pharmacy US, Inc Arlington Heights Clearbrook Specialty Outpatient Clinics Schaumburg Motorola, Inc Corporate Headquarters and Wireless and Broadband Communications Notes: (1) Source: 2014 Illinois Manufacturers Directory, 2014 Illinois Services Directory and selective telephone survey. (2) Includes all of the businesses in the Mall. The three largest are Macy's (450 employees); J.C. Penney Co. (400 Sears Roebuck and Co. (300 employees). Employment is seasonal and increases to approximately 7,000 during holiday periods. Includes seasonal employees. (3) (4) 6 970 employees); and City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B Following is industry and occupation employment information for the City, Cook County and the State as reported by the 2008-2012 American Community Survey 5 -Year Estimates. Employment By Industry (1) The Citv Classification Number Percent Agriculture, Forestry, Fishing and Hunting, and Mining 49 0.2% Construction 1,780 Manufacturing 4,208 13.9% Wholesale Trade 991 3.3% Retail Trade 3,591 11.9% Transportation and Warehousing, and Utilities 2,161 7.1% Information 692 2.3% Finance and Insurance, and Real Estate and Rental and Leasing 2,434 8.1% Professional, Scientific, and Management, and Administrative and Waste Management Services 3,467 11.5% Educational Services and Health Care and Social Assistance 5,996 19.8% Arts, Entertainment and Recreation and Accommodation and Food Services 2,887 Other Services, Except Public Administration 1,251 Public Administration 724 2.4% Total 30,231 100.0% 5.9% 9.5% 4.1% Cook County State of Illinois Number Percent Number Percent 4,338 0.2% 115,364 262,106 69,217 240,271 151,762 59,488 204,563 4.8% 10.8% 2.9% 9.9% 6.3% 2.5% 8.4% 63,512 1.1% 324,722 5.4% 767,822 12.7% 189,003 3.1% 658,236 10.9% 352,325 5.8% 130,769 2.2% 457,654 7.6% 326,261 13.5% 668,506 11.1% 542,361 22.4% 1,362,901 22.6% 233,937 123,518 91.731 2,424,917 Note: (1) Source: U.S. Bureau of the Census, 2008-2012 American Community Survey 5 -Year Estimates. Employment By Occupation(1) Classification Management, Business, Science and Arts Service Sales and Office Natural Resources, Construction, and Maintenance Production, Transportation, and Material Moving Total The City Number Percent 11,336 37.5% 4,614 15.3% 8,116 26.8% 2,460 8.1% 3.705 12.3% 30,231 100.0% 9.6% 5.1% 3.8% 100.0% Cook County Number Percent 908,106 37.4% 433,308 17.9% 606,960 25.0% 156,856 6.5% 319.687 13.2% 2,424,917 100.0% Note: (1) Source: U.S. Bureau of the Census, 2008-2012 American Community Survey 5 -Year Estimates. Annual Average Unemployment Rates (1) Calendar State of Year The City Cook County Illinois 2005 5.9% 6.4% 5.8% 2006 4.2% 4.8% 4.6% 2007 4.5% 5.2% 5.1% 2008 5.8% 6.4% 6.4% 2009 10.1% 10.4% 10.0% 2010 10.3% 10.8% 10.4% 2011 9.2% 10.3% 2012 8.4% 9.3% 8.9% 2013 8.5% 9.6% 9.2% 2014 6.6% 7.6% 7.2% 9.7% Notes: (1) Source: Illinois Department of Employment Security. (2) Preliminary for May 2014. 7 532,147 8.8% 292,913 4.9% 234.916 6,035,426 100.0% 3.9% State of Illinois Number Percent 2,181,574 36.1% 1,028,655 17.0% 1,526,612 25.3% 462,090 7.7% 836.495 13.9% 6,035,426 100.0% City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 20I4A $5,600,000 General Obligation Refunding Bonds, Series 201 4B Building Permits The average construction cost for single-family homes, based upon building permit fees for 2013 exceeded $203,400, which amount excludes the value of land, according to latest City statistics. City Building Permits (1) (Excludes the Value of Land) Calendar Single -Family Multi -Family Miscellaneous Total Year Units Value Number Value Value Value 2004 47 $17,010,034 29 $63,454,601 $ 93,697,068 $174,161,703 2005 47 18,994,100 153 64,714,192 55,363,011 139,071,303 2006 36 14,536,330 10 20,080,720 84,829,879 119,447,329 2007 19 7,158,615 5 26,616,685 80,469,290 114,244,590 2008 3 1,077,050 7 4,873,920 63,160,534 69,111,504 2009 4 1,839,515 8 7,042,560 30,792,437 39,674,512 2010 4 1,342,000 5 5,234,000 182,559,000 189,135,000(2) 2011 2 1,002,180 9 6,022,405 43,268,293 50,292,878 2012 2 1,153,690 4 2,860,160 25,980,060 29,993,910 2013(3) 3 1,424,000 7 5,459,000 33,081,000 39,964,000 2014(3)(4) 0 0 0 0 34,541,000 34,541,000 Notes: (1) Source: the City. (2) Includes construction of the Rivers Casino. (3) Values rounded to the nearest thousand. (4) For 6 months ended June 30, 2014. Housing The 2008-2012 American Community Survey 5 -Year Estimates reported that the median value of the City's owner -occupied homes was $258,100, which compares with $244,900 for the County and $190,8000 for the State. The 2008-2012 5 -year average value of specified owner -occupied units for the City, Cook County and the State was as follows: Specified Owner -Occupied Units (1) The City Cook County State of Illinois Value Number Percent Number Percent Number Percent Under $50,000 760 4.2% 36,548 3.2% 224,361 6.9% $50,000 to $99,999 569 3.2% 71,355 6.3% 468,659 14.4% $100,000 to $149,999 1,270 7.1% 128,827 11.3% 482,500 14.9% $150,000 to $199,999 2,189 12.2% 186,900 16.4% 531,538 16.4% $200,000 to $299,999 6,959 38.8% 300,856 26.4% 712,975 21.9% $300,000 to $499,999 5,432 30.3% 272,528 23.9% 563,122 17.3% $500,000 to $999,999 718 4.0% 114,947 10.1% 214,681 6.6% $1,000,000 or more 37 0.2% 28,174 2.5% 50.685 1.6% Total 17,934 100.0% 1,140,135 100.0% 3,248,521 100.0% Note: (1) Source: U.S. Bureau of the Census, 2008-2012 American Community Survey 5 -Year Estimates. Mortgage Status The City Cook County State of Illinois Value Number Percent Number Percent Number Percent Housing Units with a Mortgage 11,928 66.5% 810,192 71.1% 2,238,082 68.9% Housing Units without a Mortgage 6,006 33.5% 329,943 28.9% 1,010,439 31.1% Total 17,934 100.0% 1,140,135 100.0% 3,248,521 100.0% Note: (1) Source: U.S. Bureau of the Census, 2008-2012 American Community Survey 5 -Year Estimates. 8 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B Income Per Capita Personal Income for the Ten Highest Income Counties in the State(1) Rank 2008-2012 1 DuPage County $38,398 2 Lake County 38,248 3 McHenry County 32,408 4 Monroe County 32,334 5 Kendall County 31,856 6 Will County 30,407 7 Woodford County 30,401 8 Cook County 30,048 9 McLean County 29,960 10 Kane County 29,730 Note: (1) Source: U.S. Bureau of the Census. 2008-2012 American Community 5 -Year Estimates. The following shows a ranking of median family income for the Chicago metropolitan area from the 2008-2012 American Community Survey. Ranking of Median Family Income(1) Family County Income Rank DuPage County $95,204 1 Kendall County 93,153 2 Lake County 92,952 3 McHenry County 88,370 4 Will County 86,953 5 Kane County 78,892 9 Cook County 66,124 22 Note: (1) Source: U.S. Bureau of the Census. 2008- 2012 American Community 5 -Year Estimates. According to the 2008-2012 American Community Survey 5 -Year Estimates, the City had a median family income of $78,690. This compares to $66,124 for Cook County and $70,144 for the State. The following table represents the distribution of family incomes for the City, Cook County and the State. Median Family Income(1) The City Cook County State of Illinois Income Number Percent Number Percent Number Percent Under $10,000 227 1.6% 64,046 5.4% 133,818 4.3% $10,000 to $14,999 228 1.6% 40,067 3.4% 86,974 2.8% $15,000 to $24,999 380 2.6% 98,689 8.3% 223,395 7.1% $25,000 to $34,999 969 6.7% 104,896 8.8% 257,777 8.2% $35,000 to $49,999 1,715 11.9% 145,383 12.2% 382,988 12.2% $50,000 to $74,999 3,073 21.3% 209,624 17.6% 593,133 18.9% $75,000 to $99,999 2,790 19.4% 162,429 13.7% 477,963 15.2% $100,000to$149,999 3,000 20.8% 191,314 16.1% 553,559 17.6% $150,000 to $199,999 1,209 8.4% 81,238 6.8% 218,124 6.9% $200,000 or more 824 5.7% 91.635 7.7% 214.616 6.8% Total 14,415 100.0% 1,189,321 100.0% 3,142,347 100.0% Note: (1) Source: U.S. Bureau of the Census, 2008-2012 American Community Survey 5 -Year Estimates. 9 City of Des Plaines, Cook County, Illinois $2,020,000 ramble General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 20148 According to the 2008-2012 American Community Survey 5 -Year Estimates, the City had a median household income of $65,195. This compares to $54,648 for Cook County and $56,853 for the State. The following table represents the distribution of household incomes for the City, Cook County and the State. Median Household Income(1) The City Cook County State of Illinois Income Number Percent Number Percent Number Percent Under$10,000 682 3.1% 160,478 8.3% 329,319 6.9% $10,000 to $14,999 821 3.7% 95,450 4.9% 223,692 4.7% $15,000 to $24,999 1,794 8.0% 200,336 10.4% 481,833 10.1% $25,000 to $34,999 2,213 9.9% 186,866 9.7% 460,909 9.7% $35,000 to $49,999 2,771 12.4% 249,606 12.9% 622,840 13.0% $50,000 to $74,999 4,622 20.7% 339,402 17.6% 870,399 18.2% $75,000 to $99,999 3,520 15.8% 235,745 12.2% 622,617 13.0% $100,000 to $149,999 3,575 16.0% 253,222 13.1% 665,711 13.9% $150,000 to $199,999 1,446 6.5% 101,113 5.2% 250,681 5.3% $200,000 or more 904 4.0% 111,452 5.8% 246,274 5.2% Total 22,348 100.0% 1,933,670 100.0% 4,774,275 100.0% Note: (1) Source: U.S. Bureau of the Census, 2008-2012 American Community Survey 5 -Year Estimates. Retail and Commercial Activity The City's major downtown redevelopment project, Metropolitan Square, was fully built and reached full tax valuation in 2008. This mixed-use redevelopment features 142 condominium/loft residences; 114,000 square feet of retail space; another 27,000 square feet of office space; a 471 -car public parking garage and civic streetscape improvements. This multifaceted development has served as the anchor for subsequent smaller commercial redevelopment activities that have occurred within the downtown on an ongoing basis. The property was recently acquired by World Class Capital Group, LLC (WCCG) in May 2012. During this short period, WCCG has successfully completed eight (8) long term lease renewals (10 years) with tenants such as Potbelly Sandwich Shop, Panera Bread and Chiro One Wellness Center, in addition to two (2) new tenants including a 12,000 square foot fitness gym, Elite Fitness, and 7,000 square foot upscale neighborhood bar and grill, Tap House Grill. Metropolitan Square now features a 77 % occupancy rate. It is expected that Forever Yogurt and a pizza restaurant will be moving into Metropolitan Square in the next few months. The City is continuing its commitment to enhance economic activity in the downtown TIF District No. 1 area through various brick and mortar projects and professional services. For example, the Des Plaines comprehensive streetscape plan will significantly improve pedestrian connectivity, safety and shopping experience through new way finding signage, traffic calming techniques and improved sidewalk and crosswalks. This project also includes the rehabilitation of its Downtown Metra train station. The City is also continuing its three Downtown Business Assistance Programs to attract commercial investment in the neighborhood; in 2013, three (3) new businesses utilized the program which included two (2) restaurants. In 2013, the City partnered with an economic development firm to create an action plan exclusively for business attraction, retention, strategy recommendations and also includes an up-to-date overview of the Des Plaines market conditions. The consultant, together with the City also created a new visual identity specifically for marketing. This professional economic development focused approach will work in concert with the City's recently simplified business registration policy. 10 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B There is the potential for significant commercial development within the 70 -acre Five Corners TIF District, situated at the juncture of three of the heavily traveled arterial corridors in the metropolitan area, Rand Road, Des Plaines River Road and Golf Road. The district is envisioned as a retail/mixed-use commercial center, generating both sales and property tax revenues far in excess of the current property taxes generated by that district, which is currently used primarily for industrial uses. Industrial Activity The ongoing expansion of O'Hare International Airport and its siting of the new air cargo terminal adjacent to the City have fostered a major air freight industry cluster within the industrial quadrant of the City. Integrated freight forwarding companies Forward Air, DB Schenker, and Nippon Express have completed terminals within the City, and the City's TIF District No. 3 is 100% built out with the development of facilities for Hellman, Coasters, Caterpillar Logistics and Bombardier companies. An additional site for air freight development has been acquired and cleared by International Airport Centers. The City Council supported the issuance of three (3) Cook County 6B property tax classifications to attract new investments in its manufacturing sector. Two (2) of the three (3) businesses will substantially rehabilitate its' newly acquired buildings and provide approximately 45 new jobs. Of note, Charles Equipment Energy Systems anticipates generating approximately $10,000 to $50,000 in sales tax annually. The third 6B applicant will construct a brand new $6.83 million state -of -the art LEED certified structure in the center of 21 neighboring manufacturing buildings. Its location was heavily influenced based on its proximity to the forthcoming $200 million Chicago O'Hare International Airport Northeast Cargo Center project. Entertainment On December 23, 2008, the City was selected by the State of Illinois as the recipient of the 10th and final Illinois gaming license, based upon the City's agreement with Midwest Gaming and Entertainment for that company to construct a 1,200 -seat casino, parking structure, hotel and restaurant complex through a phased development on a 20 - plus acre site in the far southeast corner of the community. The Rivers Casino opened in July 2011 and has had the highest adjusted gross receipts of any casino in the State for each of the full months (averaging over $30,000,000 per month) since opening. The City has a tax revenue sharing agreement in place with Midwest Gaming in which $10,000,000 of the gaming tax revenues generated from the Casino are sent to the State of Illinois and 40% of the remaining revenues are shared with 10 distressed communities named in the original agreement. Further redevelopment of adjacent commercial properties is anticipated as well. The Casino is one of the City's newest principal employers with nearly 1,400 positions. Additional community benefits include the recent (October, 2013) donation of $150,000 to the Des Plaines Oakton Community College campus for scholarships. Oakton is also in the process of constructing a new 93,000 square -foot Science and Health Careers Center (set to open in January, 2015). 11 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 20145 Sales Taxes activity. The table below shows sales tax receipts in the City over the past ten years, as an indicator of commercial Retailers' Occupation, Service Occupation and Use Tax(]) State Fiscal Year State Sales Tax Home Rule Sales Tax Total Percentage Ending June 30 Distributions(2) Distributions Distributions Change + (-) 2004 $7,869,504 $3,881,000 $11,750,504 2.12%(3) 2005 7,819,815 3,970,243 11, 790,058 0.34% 2006 8,377,712 4,223,008 12,600,721 6.88% 2007 8,333,032 5,517,995 13, 851,027 9.92% 2008 8,590,038 5,739,317 14,329,355 3.45% 2009 7,940,514 5,200,163 13,140,676 (8.30%) 2010 7,654, 977 4,850,113 12,505,090 (4.84%) 2011 7,846,363 4,882,813 12,729,177 1.79% 2012 8,040,265 5,191,286 13,231,552 3.95% 2013 8,881,733 5,550,747 14,432,481 9.08% Growth from 2004 to 2013 22.82% Notes: (1) Source: Illinois Department of Revenue. (2) Tax distributions are based on records of the Illinois Department of Revenue relating to the 1% municipal portion of the Retailers' Occupation, Service Occupation and Use Taxes, collected on behalf of the City, less a State administration fee. The municipal 1% includes tax receipts from the sale of food and drugs which are not taxed by the State. (3) The 2004 percentage is based on a 2003 sales tax receipts of $11,506,141. Effective January 1, 1994, the City enacted and began to collect an additional 1/2 % home rule option sales tax on most goods sold at retail and on most goods sold in conjunction with services. Revenues from this tax are specifically earmarked for capital improvements and not for use in general operations. Effective January 1, 1999, the City enacted and began to collect an additional '/4 % home rule option sales tax on most goods and services. In 1999, revenues from this tax were specifically earmarked for debt service on the Series 1998 and Series 1999 Bonds related to the new library and not for use in general operations. The Series 1998 and 1999 Bonds were subsequently refunded in 2005 and 2009, respectively. The revenues from this tax are earmarked for capital improvements. Effective July 1, 2006, the City enacted and began to collect an additional 1/4 % home rule option sales tax on most goods and services. Revenues from this tax are specifically earmarked for general fund operations. 12 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Rehmding Bonds, Series 2014E PLAN OF FINANCING The Series 2014A Bonds The Series 2014A Bond proceeds will be used to currently refund the City's outstanding Taxable General Obligation Bonds, Series 2003C, due December 1, 2014-2021 (the "Series 2003C Refunded Bonds"), and to pay the costs of issuing the Series 2014A Bonds. The 2003C Refunded Bonds Taxable General Obligation Bonds, Series 2003C (As of August 1, 2014) Outstanding Amount Issue Redemption Redemption Amount Refunded Name Maturities Price Date $ 125,000 $ 125,000 Series 2003C 12/1/2014 100.00% 10/7/2014 165,000 165,000 Series 2003C 12/1/2015 100.00% 10/7/2014 190,000 190,000 Series 2003C 12/1/2016 100.00% 10/7/2014 220,000 220,000 Series 2003C 12/1/2017 100.00% 10/7/2014 250,000 250,000 Series 2003C 12/1/2018 100.00% 10/7/2014 290,000 290,000 Series 2003C 12/1/2019 100.00% 10/7/2014 325,000 325,000 Series 2003C 12/1/2020 100.00% 10/7/2014 375.000 375.000 Series 2003C 12/1/2021 100.00% 10/7/2014 $1,940,000 $1,940,000 The Series 2014B Bonds The Series 2014B Bond proceeds will be used to currently refund the City's outstanding General Obligation Bonds, Series 2005A, due December 1, 2017-2022 (the "Series 2005A Refunded Bonds"), to currently refund a portion of the City's outstanding General Obligation Bonds, Series 2005D, due December 1, 2015-2018, the City will also redeem a portion of the Series 2005D Bonds with cash on hand (the "Series 2005D Refunded Bonds", and together with the Series 2003C Refunded Bonds and the Series 2005A Refunded Bonds, the "Refunded Bonds"), and to pay the costs of issuing the Series 2014B Bonds. The 2005A Refunded Bonds General Obligation Bonds, Series 2005A (As of August 1, 2014) Outstanding Amount Issue Redemption Redemption Amount Refunded Name Maturities Price Date $ 390,000 $ 390,000 Series 2005A 12/1/2017 100.00% 12/1/2014 410,000 410,000 Series 2005A 12/1/2018 100.00% 12/1/2014 435,000 435,000 Series 2005A 12/1/2019 100.00% 12/1/2014 455,000 455,000 Series 2005A 12/1/2020 100.00% 12/1/2014 480,000 480,000 Series 2005A 12/1/2021 100.00% 12/1/2014 500,000 500.000 Series 2005A 12/1/2022 100.00% 12/1/2014 $2,670,000 $2,670,000 13 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014.4 $5,600,000 General Obligation Refunding Bonds, Series 20148 The 2005D Refunded Bonds General Obligation Bonds, Series 2005D (As of August 1, 2014) Outstanding Amount Refunded Issue Redemption Redemption Amount With Bonds Wth Cash(1) Name Maturities Price Date $1,360,000 $ 0 $ 0 Series 2005D 12/1/2014 Serial Maturity Serial Maturity 1,405,000 665,000 740,000 Series 2005D 12/1/2015 100.00% 12/1/2014 1,460,000 700,000 760,000 Series 2005D 12/1/2016 100.00% 12/1/2014 1,530,000 730,000 800,000 Series 2005D 12/1/2017 100.00% 12/1/2014 1.610,000 760,000 850,000 Series 2005D 12/1/2018 100.00% 12/1/2014 $7,365,000 $2,855,000 $3,150,000 Note: (1) A portion of the Series 2005D Bonds will be redeemed with available cash on hand. Bond proceeds will be used to purchase direct full faith and credit obligations of the United States of America (the "Government Securities"), the principal of which together with interest to be earned thereon will be sufficient (i) to pay when due the interest on the Refunded Bonds as stated above, and (ii) to pay principal of and call premium, if any, on the Refunded Bonds on their respective redemption dates. The remaining bond proceeds will be used to pay the costs of issuing the Bonds. The Government Securities will be held in an escrow account created pursuant to an escrow agreement (the "Escrow Agreement") dated as of August 1, 2014, between the City and Amalgamated Bank of Chicago, Chicago, Illinois, as Escrow Agent (the "Escrow Agent"). The mathematical calculations: (a) of the adequacy of the deposit made pursuant to the Escrow Agreement to provide for the payment of certain interest, principal and call premiums on the Refunded Bonds, and (b) supporting the opinion of Bond Counsel that the interest of the Bonds is excludable from gross income of the owners thereof for federal income tax purposes will be verified by Dunbar, Breitweiser & Company, LLP, Bloomington, Illinois, at the time of delivery of the Bonds. All moneys and Government Securities deposited for the payment of Refunded Bonds, including interest thereon, are required to be applied solely and irrevocably to the payment of the Refunded Bonds. 14 City of Des Plaines, Cook County, Illinois $2,020,000 Tarable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B DEBT INFORMATION After issuance of the Bonds and the refunding of the Refunded Bonds, the City will have outstanding $43,091,444 principal amount of general obligation bonds, of which $42,366,444 or over 98.3 % is fully self-supporting from water system revenues, TIF revenues, sales and utility taxes, sewer fees and other fees. In addition, the City has Illinois Finance Authority loans in the amount of $200,000, as of December 31, 2013, and TIF revenue notes (which are not general obligations of the City) payable in the amount of $482,387. The City has no tax anticipation notes or revenue bonds outstanding. As a home rule municipality under 1970 Illinois Constitution, the City has no statutory debt limitation or property tax levy limitation, and is not required to seek referendum approval to issue general obligation bonds, including the Bonds. General Obligation Debt — By Issue(1) Principal Issue Date Issue Name Outstanding 9/3/2003 Taxable General Obligation Bonds, Series 2003C $ 1,940,000 1/3/2005 General Obligation Bonds, Series 2005A 2,670,000 2/1/2005 General Obligation Refunding Bonds, Series 2005D 7,365,000 6/1/2005 General Obligation Bonds, Series 2005G 325,000 10/23/2007 General Obligation Refunding Bonds, Series 2007A 3,370,000 10/23/2007 General Obligation Refunding Bonds, Series 2007B 915,000 4/1/2008 Taxable General Obligation Corporate Purpose Refunding Bonds, Series 2008A 1,335,000 11/3/2009 Taxable General Obligation Refunding Bonds, Series 2009A 2,860,685 11/3/2009 General Obligation Refunding Bonds, Series 2009B 1,010,000 1/6/2010 General Obligation Refunding Bonds, Series 2010A 3,945,000 1/6/2010 General Obligation Refunding Bonds, Series 2010B 6,110,760 12/22/2011 General Obligation Refunding Bonds, Series 2011 2,985,000 12/18/2012 General Obligation Refunding Bonds, Series 2012 3,310,000 12/17/2013 Taxable General Obligation Refunding Bonds, Series 2013 7.945.000 Total $46,086,444 Supported By TIF Revenues TIF Revenues Sales & Utility Taxes/Fees TIF Revenues Property Taxes/ Sales & Utility Taxes/Fees Property Taxes/TIF Revenues TIF Revenues TIF Revenues Sales & Utility Taxes/Fees TIF Revenues TIF Revenues TIF Revenues TIF Revenues TIF Revenues/Special Revenues Less: The Refunded Bonds: Taxable General Obligation Bonds, Series 2003C $ (1,940,000) TIF Revenues General Obligation Bonds, Series 2005A (2,670,000) TIF Revenues General Obligation Refunding Bonds, Series 2005D (6,005,000)(2) Sales & Utility Taxes/Fees Plus: The Bonds Taxable General Obligation Corporate Purposed Bonds, Series 2014A 2,020,000 General Obligation Refunding Bonds, Series 2014B 5,600,000 Total $43,091,444 Less Self Supporting (42,366,444) Tax Supported Debt $ 725,000 TIF Revenues TIF Revenues, Sales and Utility Taxes Fees Notes: (1) Source: The City. (2) The City is planning to redeem $3,150,000 of Series 2005D Bonds with cash on hand and $2,855,000 with bond proceeds. 15 CO. of Des Plaines, Cook County, Illinois 00020009 Taxable General Obligation Corporate Purpose Bonds, Series 20144 $5,600,000 General Obligation Refunding Bods, Series 20140 General Obligation Debt(1) Principal Only Total Cumulative Property Total Less: Total Property Tax Tax Supported Calendar Outstanding Less: The Refunded Bonds The Bonds Self- Supporting Principal Retired Year Debt Series 2003C Series 2005A Series 2005D)2( Series 2014A Series 2014B Total Debt Supporting Principal Amount Percent 2014 $ 4,854,281 $ (125,000) $ 0 $ 0 $ 140,000 $ 10,000 $ 4,879,281 $ 4,799,281 $ 80,000 § 80,000 11.03% 2015 4,971,357 (165,000) 0 (1,405,000) 200,000 725,000 4,326,357 4,241,357 85,000 165,000 22.76% 2016 4,520,154 (190,000) 0 (1,460,000) 220,000 750,000 3840,154 3755,154 85,000 250,000 34.48% 2017 5,298,556 (220,000) (390,000) (1,530,000) 246000 1,145,000 4,543,556 4,458,556 85,000 335,000 4621% 2018 6,049,198 (250,000) (410,000) (1,610,000) 260,000 1,165,000 5204,198 5,114,198 90,000 425,000 58.62% 2019 4,326,162 (290,000) (435,000) 0 290,000 440,000 4,331,162 4,236,162 95,000 520,000 71.72% 2020 4,475,637 (325,000) (455,000) 0 315,000 445,000 4,455,637 4,355,637 106000 620,000 85.52% 2021 3,397,360 (375,000) (480,000) 0 356000 455,000 3,352,360 3,247,360 105,000 725,000 100.00% 2022 2,164,790 0 (500,000) 0 0 465,000 2,129,790 2,129,790 0 2023 1,579,584 0 0 0 0 0 1,579,584 1,579,584 0 2024 1,213,041 0 0 0 0 0 1,213,041 1,213,041 0 2025 1,179,295 0 0 0 0 0 1,179,295 1,179,295 0 2026 1,207,030 0 0 0 0 0 1,207,030 1207,030 0 2027 415,000 0 0 0 0 0 415,000 415,000 0 2028 435,000 0 0 0 0 0 435,000 435,000 0 2029 0 0 0 0 0 0 0 0 0 2030 0 0 0 0 0 0 0 0 0 Total$46,086,444 $(1,940,000) $(2,670,000) $(6,005,000) $2,020,000 55,600,000 543,091,444 542,366,444 $725,000 Notes: (1) Source: the City. (2) The City is planning to redeem 93,150,000 of, Series 2005D Bonds with and $2,855,000 with Bond proceeds. 16 City of Des Plaines, Cook County, Illinois $2,020,000Taroble General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B Detailed Overlapping Bonded Debt(1) Total Debt(2) Schools: Applicable to the City Percent(3) Amount School District 26 $ 12,530,000 7.77% $ 973,581 School District No. 57 8,565,000 1.38% 118,197 School District No. 59 7,615,000 11.22% 854,403 School District No. 62 98,635,000 90.73% 89,491,536 School District No. 64 16,495,000 0.00%(4) 214 High School District No. 207 4,725,000 35.13% 1,659,893 High School District No. 214 67,105,000 3.79% 2,543,280 Harper Community College District No. 512 175,310,000 1.69% 2,962,739 Total Schools $ 98,603,842 Other: Cook County 3,578,905,000 1.35% $ 48,315,218 Cook County Forest Preserve District 179,655,000 1.35% 2,425,343 Metropolitan Water Reclamation District 2,168,368,889 1.37% 29,706,654 Elk Grove Park District 12,815,000 0.73% 93,550 Des Plaines Park District 6,761,420 93.20% 6,301,643 Mt. Prospect Park District 22,080,000 18.96% 4,186,368 Total Others $ 91,028,775 Total Overlapping Debt $189,632,617 Notes: (1) (2) (3) (4) Source: Cook County Clerk. As of July 7, 2014. Percentage based on 2013 EAV's, the most current available. Percentage equals 0.0006%. Statement of Bonded Indebtedness(1) Amount Applicable City EAV of Taxable Property, 2013 $1,697,287,344 Estimated Actual Value, 2013 $5,091,862,032 Total Direct Bonded Debt(2) $ 43,091,444 Less: Self Supporting (43,366,444) Net Direct Debt $ 725,000 Overlapping Bonded Debt:(3) Schools $ 98,603,842 Other 91,028,775 Total Overlapping Bonded Debt $ 189,632,617 Total Direct and Overlapping Bonded Debt $ 190,357,617 Note: (1) (2) (3) Source: Cook County Clerk. Includes the Bonds and excludes the Refunded Bonds. As of July 7, 2014. 17 Ratio To Equalized Assessed 100.00% 300.00% 2.54% (2.50%) 0.04% 5.81% 5.36% 11.17% 11.22% Per Capita Estimated (2010 Census Actual 58,364) 33.33% $29,081.07 100.00% $87,243.20 0.85% $ 738.32 (0.83%) (725.90) 0.01% $ 12.42 1.94% $ 1,689.46 1.79% 1,559.67 3.72% $ 3,249.14 3.74% $ 3,261.56 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B PROPERTY ASSESSMENT AND TAX INFORMATION For the 2012 levy year, the most recent for which a detail is available, the City's EAV was comprised of 59.80% residential, 23.03 % industrial, 17.04 % commercial, 0% farm and 0.12% railroad property valuations. Property Class Residential Farm Commercial Industrial Railroad Total Percent Change +(-) Notes: City Equalized Assessed Valuation(1) Lew Years 2009 $1,511,280,909 0 474,846,756 540,260,183 2,037,298 $2,528,425,146 (3.81 %)(3) 2010(2) $1,414,639,043 0 451,436,196 526,094,614 2,507,411 $2,394,677,264 (5.29%) (1) Source: Cook County Clerk. (2) Levy year was a triennial reassessment year. (3) Percentage change based on 2008 EAV of $2,628,588,594. 2011 $1,320,637,690 0 378,063,481 483,073,522 2,558,611 $2,184,333,304 (8.78%) 2012 $1,219,894,729 0 347,645,864 469,850,112 2,548,662 $2,039,939,367 (6.61%) Equalized Assessed Valuation by Township(1) 2013 2013(2) Detail Not Available $1,697,287,344 (16.80%) Elk Grove Real Estate Property $280,479,925 Pollution Control District 0 Railroad Property 0 Total $280,479,925 Note: (1) Source: Cook County Clerk. Maine $1,377,429,847 799 3,052,320 $1,380,482,966 Representative Tax Rates (1) (Per $100 EAV) Wheeling $36,324,453 0 0 $36,324,453 Lew Years Total $1,694,234,225 799 3,052,320 $1,697,287,344 City Rates: 2009 General Corporate(2) $0.8661 Public Library 0.2570 Bonds and Interest 0.0507 Total City Rates(3) $1.1740 2010 2011 $0.9466 $1.0833 0.2800 0.3000 0.0515 0.0052 $1.2790 $1.3890 Cook County 0.4150 0.4230 0.4620 Cook County Forest Preserve 0.0490 0.0510 0.0580 Metropolitan Water Reclamation District 0.2610 0.2740 0.3200 Maine Township 0.1170 0.1310 0.1490 School District Number 62 2.4920 2.7410 3.1070 High School District Number 207 1.6170 1.7820 1.9950 Community College Number 535 0.1400 0.1600 0.1960 Des Plaines Park District 0.3170 0.3380 0.3790 Other Districts 0.0080 0.0090 0.0350 Total Tax Rates(4) $6.5900 $7.1880 $8.0900 Notes: (1) (2) (3) (4) 2012 $1.1603 0.3170 0.0054 $1.4830 0.5310 0.0630 0.3700 0.1680 3.4900 2.2150 0.2190 0.4250 0.0110 $8.9747 2013 $ 1.3942 0.3750 0.0067 $ 1.7760 0.5600 0.0690 0.4170 0.2100 4.2550 2.7220 0.2560 0.5310 0.0440 $10.8400 Source: Cook County Clerk. Includes Police and Firemen's Pension. As a home rule municipality, the City has no statutory tax rate limits. Representative tax rates for other government units are from Maine Township tax code 22028, which represents 63.4% of the City's 2013 EAV, the most recent available. 18 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 20145 City Tax Levies and Collections(1) Levy Coll. Taxes Total Collections(2) Year Year Levied(3)(4) Amount Percent 2009 2010 $22,482,862 $22,774,391 101.30% 2010 2011 23,181,760 23,750,110 102.45% 2011 2012 23,181,760 23,423,462 101.04% 2012 2013(5) 23,083,150 23,539,535 101.98% 2013 2014(6) 23,083,150 12,511,651 54.20% Notes: (1) Source: Cook County Clerk and the City. (2) Total Collections reflect all monies attributable to the specific tax but distributed to the taxing body over a period of time. This is updated annually by the County Treasurer and therefore is subject to revision as the treasurer makes allocations in the future. Excludes refunds and includes taxes held in reserve and interest earnings. (3) Total tax levy does not include the "loss levy" of 3% for corporate purposes and 5% for debt service which is extended by the County to cover the County's operating costs. The City may receive a portion of this "loss levy", and therefore the percentage of levy collected may exceed 100%. (4) Levy amount and collections refer only to City, and not the Library Component Unit. (5) As of July 24, 2014. (6) In collection. Large City Taxpayers (1) Taxpayer Name Product/Business 2013 EAV(2) Midwest Gaming Real Property $ 58,849,006 Universal Oil Products Chemicals Manufacturer, Catalysts Research and Development 24,458,595 Ohare Lake Office Park LLC Office Complex 21,240,944 Crane and Norcross Attorneys at Law 15,952,871 MLRP Messenger LLC Real Property 15,300,513 Juno Lighting Lighting Products 13,530,006 Abbott Labs Medical Laboratories 10,886,115 Individual Real Property 10,653,232 Apple Reit Ten Real Property 9,682,289 Michael Alesia & Associates, P.C. Real Property 8,331,069 Total $188,884,640 Ten largest as a percent of the City's 2013 EAV ($1,697,287,344) 11.13% Notes: (1) Source: Cook County Clerk. (2) Every effort has been made to reach and report the largest taxpayers. However, many of the taxpayers listed contain multiple parcels and it is possible that some parcels and their valuations have been overlooked. The 2013 EAV is the most current available. REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES Real Property Assessment The County Assessor (the "Assessor") is responsible for the assessment of all taxable real property within Cook County (the "County"), including that in the City, except for certain railroad property and pollution control facilities, which are assessed directly by the Illinois Department of Revenue (the "Department of Revenue"). For triennial reassessment purposes, Cook County is divided into three districts: west and south suburbs (the "South Tri"), north and northwest suburbs (the "North Tri"), and the City of Chicago (the "City Tri"). The City is located in the North Tri and was reassessed for the 2013 tax levy year. 19 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B Real property in the County is separated into classes for assessment purposes. After the County Assessor establishes the fair market value of a parcel of property, that value is multiplied by the appropriate classification percentage to arrive at the assessed valuation (the "Assessed Valuation ") for the parcel. Prior to the 2009 tax levy year, the classification percentages ranged from 16% for certain residential, commercial and industrial property to 36% and 38%, respectively, for other industrial and commercial property. On September 17, 2008, the Cook County Board of Commissioners approved changes to the property classification ordinance. The changes reduced the percentages used to calculate the assessed value of real property in the County for real estate tax purposes. These reductions take effect in the 2009 tax levy year. Such new classification percentages range from 10 % for certain residential, commercial and industrial property to 25 % for other industrial and commercial property. Property is classified for assessment into six basic categories, each of which is assessed (beginning with the 2009 tax levy year) at various percentages of fair market value as follows: Class 1) unimproved real estate - 10%; Class 2) residential - 10%; Class 3) rental -residential - 16%, in tax year 2009, 13% in assessment year 2010, and 10% in assessment year 2011 and subsequent years; Class 4) not-for-profit - 25%; Class 5a) commercial - 25%; Class 5b) industrial - 25 %. There are also seven additional categories. Newly constructed industrial properties or substantially rehabilitated sections of existing industrial properties within the County may qualify for a Class 6b assessment level, which assessment level is 10% for the first 10 years and for any subsequent 10 -year renewal periods. However, if the incentive is not renewed, the 6b assessment level is 15% in year 11 and 20% in year 12, hereafter reverting to Class 5b. Real estate, which is to be used for industrial or commercial purposes where such real estate has undergone environmental testing and remediation, may be eligible for a Class C assessment level. The Class C assessment level for industrial properties is 10% for the first 10 years, 15% in year 11 and 20% in year 12, thereafter reverting to Class 5b. Class C commercial properties are assessed at 10% for the first 10 years, 15% in year 11 and 20% in year 12, thereafter reverting to Class 5a. Commercial properties that are newly constructed or substantially rehabilitated and are within an area determined to be an area in need of commercial development may be classified as Class 7a or 7b property, and will then be assessed at a level of 10% for the first 10 years, 15% in year 11 and 20% in year 12, thereafter reverting to Class 5a. Certain commercial and industrial properties located in zones determined to be in need of substantial revitalization or in an enterprise community could be eligible for Class 8 assessments. The Class 8 assessment level for industrial properties is 10% for the first 10 years and for any subsequent 10 -year renewal periods. If the incentive is not renewed, the Class 8 assessment level for industrial properties is 15 % in year 11 and 20% in year 12, thereafter reverting to Class 5b. The Class 8 assessment level for commercial properties is 10% for the first 10 years, 15 % in year 11 and 20 % in year 12, thereafter reverting to Class 5a. Substantially rehabilitated or new construction multi -family residential properties within certain target areas, empowerment or enterprise zones may be eligible for Class 9 categorization. The Class 9 assessment level is 10% for an initial 10 -year period, renewable upon application for additional 10 -year periods. When the Class 9 assessment level expires, the assessment level reverts to the applicable classification. Rental -residential (Class 3) properties subject to a Section 8 contract that has been renewed under the "Mark Up To Market" option may qualify for a Class S assessment level. The Class S assessment level is 10% for the term of the Section 8 contract renewal under the Mark Up To Market option, and for any additional terms of renewal of the Section 8 contract under the Mark Up To Market option. When the Class S assessment level expires, the assessment level reverts to Class 3. Substantially rehabilitated properties which are designated as Class 3, Class 4, Class 5a or Class 5b and which qualify as Landmark or Contributing buildings may qualify for a Class L assessment level. The Class L assessment level for Class 3, 4 or 5b properties is 10% for the first 10 years and for any subsequent 10 -year renewal periods. If the incentive is not renewed, the Class L assessment level is 15% in year 11 and 20% in year 12, thereafter reverting to Class 3, 4 or 5b. Class L commercial properties are assessed at 10% for the first 10 years, 15% in year 11 and 20% in year 12, thereafter reverting to Class 5a. The Assessor has established procedures enabling taxpayers to contest their proposed Assessed Valuations. Once the Assessor certifies its final Assessed Valuations, a taxpayer can seek review of its assessment by appealing to the Cook County Board of Review, which consists of three commissioners elected by the voters of the County. The Board of Review has the power to adjust the Assessed Valuations set by the Assessor. 20 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014E Owners of both residential property having six or fewer units and owners of real estate other than residential property with six or fewer units are able to appeal decisions of the Board of Review to the Illinois Property Tax Appeal Board (the "PTAB"), a statewide administrative body. The PTAB has the power to determine the Assessed Valuation of real property based on equity and the weight of the evidence. Taxpayers may appeal the decision of PTAB to either the Circuit Court of Cook County or the Illinois Appellate Court under the Illinois Administrative Review Law. As an alternative to seeking review of Assessed Valuations by PTAB, taxpayers who have first exhausted their remedies before the Board of Review may file an objection in the Circuit Court of Cook County similar to the previous judicial review procedure but with a different standard of proof than that previously required. In addition, in cases where the Assessor agrees that an assessment error has been made after tax bills have been issued, the Assessor can correct any factual error, and thus reduce the amount of taxes due, by issuing a Certificate of Error. Certificates of Error are not issued in cases where the only issue is the opinion of the valuation of the property. Equalization After the County Assessor has established the Assessed Valuation for each parcel for a given year, and following any revisions by the Board of Review or PTAB, the Illinois Department of Revenue is required by statute to review the Assessed Valuations. The Illinois Department of Revenue establishes an equalization factor (the "Equalization Factor"), commonly called the "multiplier," for each county to make all valuations uniform among the 102 counties in the State. Under State law, the aggregate of the assessments within each county is to be equalized at 33-1/3 % of the estimated fair cash value of real property located within the county prior to any applicable exemptions. One multiplier is applied to all property in Cook County, regardless of its assessment category, except for some farmland property which is not subject to equalization. Once the Equalization Factor is established, the Assessed Valuation, as revised by the Board of Review or PTAB, is multiplied by the Equalization Factor to determine the equalized assessed valuation (the "EAV") of that parcel. The EAV for each parcel is the final property valuation used for determination of tax liability. The aggregate EAV for all parcels in any taxing body's jurisdiction, plus the valuation of property assessed directly by the State, constitutes the total real estate tax base for the taxing body and is the figure used to calculate tax rates (the "Assessment Base"). The following table sets forth the Equalization Factor for Cook County for the last 10 tax levy years. TAX LEVY YEAR EQUALIZATION FACTOR 2004 2.5757 2005 2.7320 2006 2.7076 2007 2.8439 2008 2.9786 2009 3.3701 2010 3.3000 2011 2.9706 2012 2.8056 2013 2.6621 21 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B Exemptions Public Act 95-644, effective October 17, 2007, made changes to and added a number of property tax exemptions taken by residential property owners. Public Act 98-0007, effective April 23, 2013, (together with Public Act 95-644, (the "Acts")) increased certain exemptions. The changes made by the Acts are discussed below. An annual General Homestead Exemption provides that the EAV of certain property owned and used for residential purposes ("Residential Property") may be reduced up to a maximum reduction of $5,000 for assessment years 2004 through assessment year 2007. The maximum reduction is $5,500 for assessment year 2008, and $6,000 for assessment years 2009 through 2011. For assessment years 2012 and thereafter, the maximum reduction is $7,000. The Alternative General Homestead Exemption caps EAV increases for homeowners (who also reside on the property as their principal place of residence) at 7% a year, up to a certain maximum each year as defined by the statute. Any amount of increase that exceeds the maximum exemption as defined is added to the 7% increase and is part of that property's taxable EAV. Homes that do not increase by at least 7% a year are entitled, in the alternative, to the General Homestead Exemption as discussed above. The Base Year for purposes of calculation of the Alternative General Homestead Exemption is 2002 for properties located in the City Tri, 2003 for properties located in the North Tri and 2004 for properties located in the South Tri. The Base Homestead Value is the EAV of the homestead property minus the General Homestead Exemption for that year: $4,500 for years prior to 2004; $5,000 for 2004 through 2007; $5,500 for 2008 and $6,000 for the year 2009 and thereafter. For properties in the City Tri, the Alternative General Homestead Exemption cannot exceed $33,000 for assessment year 2006 (except as noted below), $26,000 for assessment year 2007, $20,000 for assessment year 2008 and $6,000 thereafter. For properties in the North Tri, the Alternative General Homestead Exemption cannot exceed $20,000 for assessment year 2006, $33,000 for assessment year 2007, $26,000 for assessment year 2008, $20,000 for assessment year 2009 and $6,000 thereafter. For properties in the South Tri, the Alternative General Homestead Exemption cannot exceed $20,000 for assessment years 2006 and 2007, $33,000 for assessment year 2008, $26,000 for assessment year 2009, $20,000 for assessment year 2010 and $6,000 thereafter. Furthermore, only in the City Tri and only for assessment year 2006, the maximum exemption amount may be increased to: (i) $40,000, provided that the EAV of the property for assessment year 2006 exceeds the EAV of that property for assessment year 2002 by an amount equal to or greater than 100%, or (ii) $35,000 provided that the EAV of the property for assessment year 2006 exceeds the EAV of that property for assessment year 2002 by an amount greater than 80% but not more than 100%. Finally, the Long -Time Occupant Homestead Exemption applies to those counties subject to the Alternative General Homestead Exemption, including Cook County. Beginning with assessment year 2007 and thereafter, the EAV of homestead property of a taxpayer who has owned the property for at least 10 years (or 5 years if purchased with certain government assistance) and who has a household income of $100,000 or less ("Qualified Homestead Property") may increase by no more than 10% per year. If the taxpayer's annual income is $75,000 or less, the EAV of the Qualified Homestead Property may increase by no more than 7% per year. There is no exemption limit for Qualified Homestead Properties. Individuals applying for this exemption must comply with the following guidelines: (i) continuously occupy their property for 10 years, as of January 1S1 of the assessment year, and occupy such property as their principal residence or, (ii) continuously occupy their property as their principal place of residence for 5 years, as of January 1" of the assessment year, provided that the property was purchased with certain government assistance. 22 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B In addition, the Homestead Improvement Exemption applies to residential properties that have been improved and to properties that have been rebuilt in the two years following a catastrophic event. The exemption is limited to $45,000 through December 31, 2003, and $75,000 per year beginning January 1, 2004, and thereafter, to the extent the assessed value is attributable solely to such improvements or rebuilding. Additional exemptions exist for senior citizens. The Senior Citizens Homestead Exemption operates annually to reduce the EAV on a senior citizen's home for assessment years prior to 2004 by $2,500 in counties with 3,000,000 inhabitants or more. For assessment years 2004 through 2005, the maximum reduction is $3,000 in all counties. For assessment years 2006 and 2007, the maximum reduction is $3,500 in all counties. For assessment years 2008 through 2011, the maximum reduction is $4,000 for all counties. For assessment year 2012, the maximum reduction is $5,000 in counties with 3,000,000 or more inhabitants. For the assessment years 2013 and thereafter, the maximum reduction is $5,000 in all counties. Furthermore, property that is first occupied as a residence after January 1 of any assessment year by a person who is eligible for the Senior Citizens Homestead Exemption must be granted a pro rata exemption for the assessment year based on the number of days during the assessment year that the property is occupied as a residence by a person eligible for the exemption. A Senior Citizens Assessment Freeze Homestead Exemption freezes property tax assessments for homeowners who are 65 and older, reside in their property as their principal place of residence and receive a household income not in excess of the maximum income limitation. The maximum income limitation is $50,000 for assessment years 2006 and 2007; for assessment years 2008 and after, the maximum income limitation is $55,000. In general, the exemption grants qualifying senior citizens an exemption based upon a "freeze" of their home's assessed valuation. Another exemption, available to disabled veterans, may be applied annually to exempt up to $70,000 of the Assessed Valuation of property owned and used exclusively by such veterans or their spouses for residential purposes. However, individuals claiming exemption under the Disabled Persons' Homestead Exemption or the hereinafter defined Disabled Veterans Standard Homestead Exemption cannot claim the aforementioned exemption. Also, certain property is exempt from taxation on the basis of ownership and/or use, such as public parks, not- for-profit schools and public schools, churches, and not-for-profit hospitals and public hospitals. Furthermore, beginning with assessment year 2007, the Disabled Persons' Homestead Exemption provides an annual homestead exemption in the amount of $2,000 for property that is owned and occupied by certain persons with a disability. However, individuals claiming exemption as a disabled veteran or claiming exemption under the Disabled Veterans Standard Homestead Exemption cannot claim the Disabled Persons' Homestead Exemption. In addition, the Disabled Veterans Standard Homestead Exemption provides disabled veterans an annual homestead exemption starting with assessment year 2007 and thereafter. Specifically, (i) those veterans with a service - connected disability of 75 % are granted an exemption of $5,000 and (ii) those veterans with a service -connected disability of less than 75 %, but at least 50 %, are granted an exemption of $2,500. Furthermore, the veteran's surviving spouse is entitled to the benefit of the exemption, provided that the spouse has legal or beneficial title of the homestead, resides permanently on the homestead and does not remarry. Moreover, if the property is sold by the surviving spouse, then an exemption amount not to exceed the amount specified by the current property tax roll may be transferred to the spouse's new residence, provided that it is the spouse's primary residence and the spouse does not remarry. However, individuals claiming exemption as a disabled veteran or claiming an exemption under the Disabled Persons' Homestead Exemption cannot claim the aforementioned exemption. 23 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B Also, beginning with assessment year 2007, the Returning Veterans' Homestead Exemption is available for property owned and occupied as the principal residence of a veteran in the assessment year the veteran returns from an armed conflict while on active duty in the United States armed forces. This provision grants a homestead exemption of $5,000, which is applicable in all counties. In order to apply for this exemption, the individual must pay real estate taxes on the property, own the property or have either a legal or an equitable interest in the property, subject to some limitations. Those individuals eligible for this exemption may claim the exemption in addition to other homestead exemptions, unless otherwise noted. Tax Levy As part of the annual budgetary process of governmental units (the "Units") with power to levy taxes in the County, proceedings are adopted by the designated body for each Unit each year in which it determines to levy real estate taxes. The administration and collection of real estate taxes is statutorily assigned to the County Clerk and the County Treasurer. After the Units file their annual tax levies, the County Clerk computes the annual tax rate for each Unit. The Cook County Clerk uses the prior year's EAV to compute the taxing district's maximum allowable levy. The maximum levy that can be raised for a Unit is the maximum tax rate for that Unit multiplied by the prior year, EAV for all property currently in the district. The prior year's EAV includes the prior year's EAV plus the EAV of any new property, the current year value of any annexed property, and any recovered tax increment value, minus any disconnected property for the current year under the Property Tax Extension Limitation Law ("Limitation Law"). The tax rate for a Unit is computed by dividing the lesser of the maximum allowable levy or the actual levy by the current year's EAV. Property Tax Extension Limitation Law The Property Tax Extension Limitation Law (the "Limitation Law") limits the amount of the annual increase in property taxes to be extended for certain Illinois non -home rule units of government. In general, the Limitation Law restricts the amount of such increases to the lesser of 5% or the percentage increase in the Consumer Price Index during the calendar year preceding the levy year. Currently, the Limitation Law applies only to and is a limitation upon all non -home rule taxing bodies in Cook County, the five collar counties (DuPage, Kane, Lake, McHenry and Will) and several downstate counties. Home rule units, including the City, are exempt from the limitations contained in the Limitation Law. If the Limitation Law were to apply in the future to the City, the limitations set forth therein will not apply to any taxes levied by the City to pay the principal of and interest on the Bonds. Extensions The County Clerk then computes the total tax rate applicable to each parcel of real property by aggregating the tax rates of all of the Units having jurisdiction over the particular parcel. The County Clerk extends the tax by entering the tax (determined by multiplying the total tax rate by the EAV of that parcel for the current assessment year) in the books prepared for the County Collector (the "Warrant Books") along with the tax rates, the Assessed Valuation and the EAV. The Warrant Books are the County Collector's authority for the collection of taxes and are used by the County Collector as the basis for issuing tax bills to all property owners. 24 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B Collections Property taxes are collected by the County Collector, who is also the County Treasurer, who remits to each Unit its share of the collections. Taxes levied in one year become payable during the following year in two installments, the first due on March 1 and the second on the later of August 1 or 30 days after the mailing of the tax bills. A payment due is deemed to be paid on time if the payment is postmarked on the due date. The first installment is equal to one-half of the prior year's tax bill; beginning in collection year 2010, this estimated amount was raised to 55 % of the prior year's tax bill. However, if a Certificate of Error is approved by a court or certified on or before November 30 of the preceding year and before the estimated tax bills are prepared, then the first installment is instead equal to one-half of the corrected prior year's tax bill. The second installment is for the balance of the current year's tax bill, and is based on the then current tax year levy, assessed value and Equalization Factor, and reflects any changes from the prior year in those factors. The following table sets forth the second installment penalty date for the last 10 tax levy years in Cook County; the first installment penalty date has been March 1 for all such years. SECOND INSTALLMENT TAX LEVY YEAR PENALTY DATE 2004 November 2, 2005 2005 September 1, 2006 2006 December 3, 2007 2007 November 3, 2008 2008 December 1, 2009 2009 December 13, 201.0 2010 November 1, 2011 2011 August 1, 2012 2012 August 1, 2013 2013 August 1, 2014 It is possible that the changes to the assessment appeals process described above will cause delays similar to those experienced in past years in preparation and mailing of the second installment in future years. The County may provide for tax bills to be payable in four installments instead of two. However, the County has not required payment of tax bills in four installments. During the periods of peak collections, tax receipts are forwarded to each Unit on a weekly basis. Upon receipt of taxes from the County Collector, the City promptly credits the taxes received to the funds for which they were levied. At the end of each collection year, the County Collector presents the Warrant Books to the Circuit Court and applies for a judgment for all unpaid taxes. The court orders resulting from the application for judgment provides for an Annual Tax Sale (the "Annual Tax Sale") of unpaid taxes shown on that year's Warrant Books. A public sale is held, at which time successful tax buyers pay the unpaid taxes plus penalties. In each such public sale, the collector can use any "automated means." Unpaid taxes accrue penalties at the rate of 1.5% per month from their due date until the date of sale. Taxpayers can redeem their property by paying the amount paid at the sale, plus a maximum of 12% for each six-month period after the sale. If no redemption is made within the applicable redemption period (ranging from six months to two and one-half years depending on the type and occupancy of the property) and the tax buyer files a petition in the Circuit Court, notifying the necessary parties in accordance with the applicable law, the tax buyer receives a deed to the property. In addition, there are miscellaneous statutory provisions for foreclosure of tax liens. If there is no sale of the tax lien on a parcel of property at the Annual Tax Sale, the taxes are forfeited and the property becomes eligible to be purchased at any time thereafter at an amount equal to all delinquent taxes and interest accrued to the date of purchase. Redemption periods and procedures are the same as applicable to the Annual Tax Sale. 25 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B The Scavenger Sale (the "Scavenger Sale"), like the Annual Tax Sale, is a sale of unpaid taxes. The Scavenger Sale is held every two years on all property on which two or more years' taxes are delinquent. The sale price of the unpaid taxes is the amount bid at such sale, which may be less than the amount of delinquent taxes. Redemption periods vary from six months to two and a half years depending upon the type and occupancy of the property. Truth in Taxation Law Legislation known as the Truth in Taxation Law (the "Law") limits the aggregate amount of certain taxes which can be levied by, and extended for, a taxing district to 105 % of the amount of taxes extended in the preceding year unless specified notice, hearing and certification requirements are met by the taxing body. The express purpose of the Law is to require published disclosure of, and hearing upon, an intention to adopt a levy in excess of the specified levels. FINANCIAL INFORMATION Financial Reports The City's accounting records for Governmental Funds, Expendable Trust Funds and Agency Funds are maintained on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures, other than interest on long-term debt, are recorded when the liability is incurred, if measurable. The accrual basis of accounting is used by Proprietary Funds and Pension Trust Funds. See APPENDIX A for more detail. The financial statements are audited annually by certified public accountants. For the fiscal years from 1980 through 2012, a period of 33 consecutive years, the City has received the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting. In 1998, the City Council enacted an electricity tax on use or consumption of electricity at rates associated with the number of kilowatt hours used. In addition the City also has a Municipal Utility Tax and Gas Use Tax. In 1998, the City started charging a municipal utility tax on natural gas of 3.09 % of total gross receipts. In 2002, the City Council imposed a tax on the privilege of using or consuming gas in the City that is purchased in a sale at retail at the rate of 2.5 cents per therm. Additionally, the City started charging non-residents for using City ambulance services in 1995. Effective January 1, 2003 the simplified municipal telecommunication tax act took effect. Under this act, land based and wireless service providers remit up to 6% of their gross sales to the Illinois Department of Revenue. During the 2008 Budget process the City passed an Ordinance establishing an increase to the rate in the amount of 3%, for a total of 6%. Based on State Statute, the rate became effective on July 1, 2008. 26 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014E Investment Policy The City has adopted an investment policy. That policy follows the state statute for allowable investments. Illinois Statutes authorize the City to make deposits/investments in insured commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, insured credit union shares, money market mutual funds with portfolios of securities issued or guaranteed by the United States or agreement to repurchase these same obligations, repurchase agreements, short-term commercial paper rated within the three highest classifications by at least two standard rating services, and the Illinois Funds Investment Pool. Pension funds may also invest in certain non -U.S. obligations, Illinois municipal corporations tax anticipation warrants, veteran's loans, obligations of the State of Illinois and its political subdivisions, and the Illinois insurance company general and separate accounts, mutual funds and equity securities. The police pension trust fund's investment policy allows investments in all of the above listed accounts, but does exclude any repurchase agreements. The firefighters' pension trust fund allows funds to be invested in any type of security authorized by the Illinois Pension Code. Additional restrictions may arise from local charters, ordinances, resolutions and grant resolutions. The Police and Firefighter's Pension Trust Funds' policies are to maintain long-term focus on their investment decision-making processes. Specifically, the Funds' benefit liabilities extend many years into the future. As such, the investment focus should be on long-term results. No Consent or Updated Information Requested of the Auditor The tables and excerpts (collectively, the "Excerpted Financial Information") contained in this "FINANCIAL INFORMATION" section and in APPENDIX A are from the audited financial statements of the City, including the audited financial statements for the fiscal year ended December 31, 2013 (the "2013 Audit"), which was approved by formal action of the City Council. The City has not requested the Auditor to update information contained in the Excerpted Financial Information; nor has the City requested that the Auditor consent to the use of the Excerpted Financial Information in this Final Official Statement. Other than as expressly set forth in this Final Official Statement, the financial information contained in the Excerpted Financial Information has not been updated since the date of the 2013 Audit. The inclusion of the Excerpted Financial Information in this Final Official Statement in and of itself is not intended to demonstrate the fiscal condition of the City since the date of the 2013 Audit. Questions or inquiries relating to financial information of the City since the date of the 2013 Audit should be directed to the City. Summary Financial Information The following tables are summaries and do not purport to be the complete audits, copies of which are available upon request. See APPENDIX A for excerpts of the City's 2013 fiscal year audit. 27 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B Statement of Net Assets Primary Government Governmental Activities Audited As of December 31 2009 2010 2011 2012 2013 ASSETS: Cash and Investments $ 21,048,313 $ 28,509,566 $ 39,425,620 $ 65,799,739 $ 75,050,932 Restricted Cash and Investments 0 0 0 0 8,087,311 Receivables, Net of Allowances for Uncollectibles 0 0 0 0 0 Property Taxes 29,476,448 33,290,779 29,847,630 27,673,960 28,563,366 Accounts 1,394,480 1,691,423 4,596,737 4,736,908 4,612,787 Accrued Interest 4,348 666 1,057 7,530 3,156 Other Taxes 1,202,916 1,314,919 1,402,193 1,336,337 1,382,230 Other 753,507 982,477 956,093 561,986 313,809 Prepaid Expenses 697,787 3,372,295 3,261,796 3,183,227 3,116,909 Due from Other Governments 6,441,978 6,595,058 6,817,175 6,884,906 6,940,345 Pension Refund Receivables 0 0 0 0 0 Internal Balances (428,758) (464,648) (477,562) (484,170) 321,812 Deferred Charges 546,690 765,713 695,100 0 0 Net Pension Asset 727,227 937,828 1,244,308 1,442,870 1,510,687 Capital Assets Not Being Depreciated 73,373,128 78,625,349 72,860,664 72,860,664 73,029,456 Capital Assets, Being Depreciated 100,171,379 98,457,758 111,326,234 112,291,363 117,773,463 Total Assets $235,409,443 $254,079,183 $271,957 045 $296,295,320 $320,706,263 DEFERRED OUTFLOWS OF RESOURCES: Deferred Amounts from Refunding of Debt 0 0 0 693,335 523,867 LIABILITIES: Accounts Payable $ 4,118,591 $ 3,781,440 $ 10,757,252 $ 18,982,994 $ 21,202,698 Accrued Liabilities 884,324 1,117,785 135,308 99,888 122,264 Accrued Payroll 204,987 208,333 1,236,079 1,277,237 1,583,289 Other Payables 269,137 0 0 0 0 Accrued Interest Payable 313,575 210,205 180,585 175,095 183,205 Unearned Revenue 29,144,543 30,054,362 29,845,858 264,466 430,032 Deposits Payable 286,308 69,042 47,754 46,382 51,687 Short Term Notes Payable 7,112,000 0 0 0 0 Accrued Pension Contributions 0 0 0 0 0 Long -Term Obligations: Due Within One Year 8,705,663 8,491,794 6,416,581 7,435,057 14,436,802 Due in More Than One Year 70,020,175 66,064 563 61,482,515 55,779,769 46,962,691 Total Liabilities $121,059,303 $109,997,524 $110,101,932 $ 84,060,888 $ 84,972,668 DEFERRED INFLOWS OF RESOURCES: Deferred Property Tax Revenue 0 0 0 27,493,679 28,359,634 NET ASSETS: Investment in Capital Assets, Net of Related Debt $106,143,382 $120,440,844 $116,287,802 $127,408,625 $141,973,412 Restricted For: Streets and Highways 152,202 624,128 1,768,708 1,596,392 454,201 Public Safety 2,362,852 2,951,948 2,266,416 2,347,517 2,104,739 Economic Development 1,095,556 3,419,235 4,756,587 6,034,197 3,941,385 Debt Service 0 0 240,116 288,188 8,369,381 Unrestricted 4,596,148 16,645,504 36,535,484 47,759,170 51,054,710 Total Net Assets $114,350,140 1144,081,659 $161,855,113 $185,434,089 $207,897,828 28 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B Statement of Activities Governmental Activities Net (Expense) Revenue and Changes in Net Assets Audited Year Ended December 31 2009 2010 2011 2012 2013 FUNCTIONS/PROGRAMS PRIMARY GOVERNMENT: General Government $ (289,549) $ 515,329 $(10,479,088) $(20,102,402) $(20,085,342) Public Safety (34,007,194) (32,071,707) (33,959,029) (33,760,877) (35,284,095) Public Works (6,070,734) (3,856,346) (4,465,290) (3,644,680) (3,551,642) Streets and Highways (7,309,291) 6,585,361 (2,012,893) (3,459,609) (6,902,428) Economic Development (2,184,724) (1,487,301) (1,161,997) (1,553,448) (1,906,584) Interest (3,984,468) (3,631,361) (3,274,304) (3,046,102) (2,709,144) Total Governmental Activities(1) $ (53,845,960) $ (33,946,025) $ (55,352,601) $ (65,567,118) $ (70,439,235) GENERAL REVENUES: Taxes: Property $ 27,934,060 Replacement 1,229,867 Sales 8,271,828 Utility 2,184,785 Income 4,686,475 Home Rule Sales 4,775,264 Food and Beverage Tax 897,541 Hotel/Motel 1,243,395 Real Estate Transfer 341,949 Local Option Motor Fuel 0 Gaming Taxes 0 Other Taxes 5,628,019 Intergovernmental 128,581 Investment Income 98,711 Miscellaneous 1,329,137 Gain (Loss) on Sale of Capital Assets 0 Contributions 0 Transfers (94,340) Component Unit Transfers 0 Total General Revenues $ 58,655,272 Change in Net Assets 4,809,312 Prior Period Adjustments 0 Net Assets, January 1 109,540,828 Net Assets, December 31 $114.350,140 $ 29,117,255 $ 29,671,822 $ 28,841,683 $ 28,575,125 1,296,063 1,207,737 1,143,050 1,341,936 8,589,981 8,690,828 9,695,640 13,486,496 3,353,950 3,401,735 3,239,299 3,264,076 4,580,927 4,515,411 5,376,774 5,643,512 4,834,624 5,034,311 5,544,261 5,640,304 911,865 1,059,647 1,236,942 1,177,511 1,387,872 1,440,269 1,675,772 1,752,342 399,853 393,417 407,884 436,309 1,683,503 1,719,941 1,685,069 1,707,152 0 10,819,591 24,802,456 24,662,123 4,364,047 4,541,664 4,735,420 4,277,423 574,467 0 0 0 74,589 82,369 160,289 89,626 479,138 783,626 1,280,897 899,031 0 0 0 0 0 0 0 0 262,432 (236,313) 15,758 (49,992) 0 0 0 0 $ 61,910,566 $ 73,126,055 $ 89 841 194 $ 92,902,974 27,964,541 0 116,117,118(2) $144.081.659 Notes: (1) Expenses less Charges for Services, Operating Grants and Capital Grants. (2) As restated. 29 17,773,454 0 144,081,659 $161.855.113 24,274,076 22,463,739 0 0 161,160,013(2) $185,434,089 $185.434.089 $207.897.828 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B General Fund Balance Sheet Audited as of December 31 ASSETS: 2009 2010 2011 2012 2013 Cash and Equivalents $ 9,957,253 $10,607,174 $17,109,909 $23,740,541 $30,801,407 Receivables: Accounts 982,339 1,060,691 1,404,139 1,405,087 1,383,991 Property Taxes 22,179,165 25,086,119 23,006,473 22,800,930 22,830,537 Other Taxes 1,125,325 1,183,355 1,256,378 1,196,399 1,233,717 Other Receivables 708,758 472,269 439,754 561,804 310,559 Accrued Pension Contributions 0 0 0 0 0 Accrued Interest 190 0 451 7,051 1,990 Due From Other Governments 4,822,972 5,471,825 5,055,974 5,342,762 5,165,574 Due From Other Funds 8,813,767 8,189,209 421,135 2,481 777,873 Advances From/To Other Funds 0 0 8,162,664 8,606,709 9,897,031 Prepaid Items 4.536 3,000 0 0 3,265 Total Assets $48,594,305 $52,073,642 $56,856,877 $63,663,764 $72,405,944 LIABILITIES AND FUND EQUITY: Liabilities: Accounts Payable $ 1,617,404 $ 1,333,639 $ 1,649,263 $ 1,774,441 $ 2,337,847 Accrued Payroll 0 0 1,220,715 1,268,564 1,567,700 Accrued Liabilities 1,057,244 1,191,531 111,498 85,731 99,074 Other Payables 0 0 0 0 0 Due to other government units 269,137 0 0 0 0 Deferred Revenue 23,729,102 24,288,549 24,632,188 264,466 430,032 Due to Other Funds 2,435,193 1,865,857 0 0 0 Short-term Notes Payable 6,500,000 0 0 0 0 Accrued Pension Contributions 0 0 0 0 0 Total Liabilities $35,608,080 $28,679,576 $27,613,664 $ 3,393,202 $ 4,434,653 Deferred Inflows of Resources: Deferred Property Tax Revenue $ 0 $ 0 $ 0 $22,747,973 $22,745,844 Unavailable Other Revenue 0 0 0 1,787,820 1,584,834 Total Deferred Inflows of Resources $ 0 $ 0 $ 0 $24,535,793 $24,330,678 Non Spendable: Long-term Interfund Advances 0 0 8,162,664 8,606,709 $ 9,897,031 Prepaid Items 0 0 0 0 3,265 Reserved 0 0 0 0 0 Reserved for Long -Term Receivable 8,807,458 7,977,992 0 0 0 Reserved for Prepaid Items 4,536 3,000 0 0 0 Assigned: Infrastructure 0 0 0 500,000 4,100,000 Capital Acquisitions 0 0 0 152,500 3,970,000 Streets and Highways 0 0 0 0 250,000 Pension Funding 0 0 0 1,009,318 1,313,108 Public Safety 0 0 0 2,500,000 0 Debt Service 0 0 0 0 4,000,000 Unreserved 4,174,231 15,413,074 0 0 0 Unassigned 0 0 21 080 549 22,966,242 20,107,209 Total Fund Equity $12,986,225 $23,394,066 $29,243,213 $35,734,769 $43,640,613 Total Liabilities, Deferred Inflows of Resources and Fund Equity $48.594.305 $52,0Z16.42 $56 856.877 $63,663.764 $72.405.944 Note: (1) Includes cash and equivalents. 30 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B General Fund Revenues and Expenditures Audited Years Ending December 31 REVENUES: 2009 2010 2011 2012 2013 Taxes $19,888,602 $21,461,924 $22,356,628 $23,141,075 $23,043,431 Other Taxes 10,298,486 11,556,651 11,743,198 12,195,929 12,030,631 Licenses and Permits 3,011,551 4,054,683 3,086,311 2,781,329 2,924,191 Intergovernmental 14,430,178 14,680,433 15,010,880 16,245,216 20,992,728 Charges for Services 6,377,634 6,246,285 6,344,524 6,689,530 6,245,773 Fines and Forfeits 1,118,464 921,328 1,370,186 1,158,716 1,312,001 Investment Income 15,497 23,469 41,617 85,646 25,188 Miscellaneous 1,111,874 363 613 559.964 543.494 550,055 Total Revenues $56,252,286 $59,308,386 $60,513,308 $62,840,935 $67,123,998 EXPENDITURES: Current: General Government $ 7,093,003 $ 6,742,596 $ 6,821,598 $ 7,304,439 $ 7,272,417 Public Safety 35,460,313 34,078,950 36,561,253 37,230,479 38,138,909 Public Works 5,855,521 4,872,193 5,943,764 5,697,710 6,225,488 Streets and Highways 5,069,135 4,236,133 4,412,015 4,539,771 5,210,461 Economic Development 329,564 374,321 371,346 410,325 500,690 Interest and Fiscal Charges 0 36,026 0 0 0 Capital Outlay 16,836 28,403 0 0 0 Total Expenditures $53,824,372 $50,368,622 $54,109,976 $55,182,724 $57,347,965 Excess (Deficiency) of Revenues Over Expenditures $ 2,427,914 $ 8,939,764 $ 6,403,332 $ 7,658,211 $ 9,776,033 Other Financing Sources (Uses), Net 1,190,000 1 468 077 (2,420,042) (1,166,655) (1,870,189) Special Items 0 0 1,865,857 0 0 Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Financing Uses $ 3,617,914 $10,407,841 $ 5,849,147 $ 6,491,556 $ 7,905,844 Balance, January 1 $ 9,370,311 $12,986,225 $23,394,066 $29,243,213 $35,734,769 Balance, December 31 $12,988,225 $23,394,066 $29,243,213 $35,734,769 $43,640,613 General Fund Unaudited Budget and Interim Information (1) Budget Year -to -Date Fiscal Year Six Months Ended 2014 June 30, 2014 REVENUES: Taxes $34,027,100 $ 18,779,880 Licenses & Permits 2,177,100 2,207,517 Intergovernmental 15,035,000 8,896,027 Charges for Services 5,574,000 2,883,414 Fines and Forfeits 1,057,500 723,489 Investment Income 50,000 16,079 Other 502,257 274.394 Total Revenue $58,422,957 $33,780,800 EXPENDITURES: General Government $13,137,215 $ 4,913,657 Public Safety 39,021,257 18,299,767 Economic Development 641,714 105,116 Public Works 5,921,466 2,114,962 Streets & Highways 6,288,473 2,314,073 Total Expenditures $65,010,125 $27,747,575 Note: (1) Source: the City. 31 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable Genera( Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 20148 EMPLOYEES' RETIREMENT SYSTEM The City contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), an agent multiple employer public employee retirement system; the Police Pension Plan which is a single employer pension plan; and the Firefighters' Pension Plan which is a single employer pension plan. The benefits, benefits levels, employee contributions and employer contributions for the plans are governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. The Police Pension Plan and the Firefighters' Pension Plan do not issue separate reports on the pension plans. IMRF does issue a publicly available report that includes financial statements and supplementary information for the plan as a whole, but not for individual employers. That report can be obtained on-line at www,imrf.org. See APPENDIX D herein for a discussion of the City's employee retirement obligations. OTHER POST EMPLOYMENT BENEFITS The City administers a single employer defined benefit healthcare plan "the Retiree Health Plan". The plan provides health insurance contributions for eligible retirees and their spouses through the City's group health insurance plan which covers both active and retired members. A retiree is eligible to receive benefits if they fall into any one of four categories. IMRF participants are eligible at age 55 with at least 8 years of service, or if they are totally and permanently disabled. Police officers and firefighters are eligible at age 50 with 20 years of service, or if they medically disabled and unable to perform the duties as a police officer or firefighter. Police officers are eligible for a reduced benefit at age 60 with at least 10 years of service, but less than 20 years. Police officers and firefighters that terminate with a vested benefit are eligible for post-retirement healthcare benefits commencing at the time of separation. Spouses and dependents of retirees are eligible to continue healthcare coverage while the retiree is alive if they were enrolled at the time of retirement. Surviving spouses of employees are eligible for COBRA coverage. Surviving spouses and dependent children of police officers and firefighters that were injured in the line of duty, during an emergency, and surviving spouses of all retirees are eligible to continue healthcare coverage. Retirees, spouses, and dependents opting out of the retiree health program cannot re-enter into the program. See APPENDIX A herein for a discussion of the City's employee retirement and other postemployment benefits obligations. REGISTRATION, TRANSFER AND EXCHANGE Registration The registered owner of a Bond will be deemed and regarded as the absolute owner thereof for the purpose of receiving payment of, or on account of, the principal of, premium, if any, or interest theron and for all other purposes whatsoever, and all such payments so made to such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. Transfers and Exchanges The transfer of Bonds will be registrable only upon the registration books maintained by the City for that purpose at the principal corporate trust office of the Bond Registrar, by the registered owner thereof or by his attorney duly authorizied in writing, upon surrender thereof together with an instrument of transfer satisfactory to the Bond Registrar and duly executed by the registered owner or his duly authorized agent. Upon such surrender for registration of transfer, the City will execute and the Bond Registrar will authenticate and deliver a new Bond or Bonds of any authorized denominations, registered in the name of the transferee, and of the same aggregate principal amount, maturity and interest rate as the surrendered Bond. 32 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B Bonds may be exchanged for an equal aggregate principal amount of Bonds of the same maturity and interest rate and of any authorized denominations, upon surrender thereof as the principal corporate trust office of the Bond Registrar with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or his duly authorized agent. For every such exchange or registration of transfer of Bonds, the City or the Bond Registrar may make a charge sufficient to reimburse it for any tax or other governmental charge required to be paid with respect to such exchange or registration of transfer. No charge will be made in connection with such exchange or registration of transfer to pay the cost of preparing each new Bond issued upon such exchange or registration of transfer. CERTAIN FEDERAL INCOME TAX CONSIDERATIONS - THE SERIES 2014A BONDS THE SERIES 2014A BONDS WILL BE TREATED AS OBLIGATIONS NOT DESCRIBED IN SECTION 103(A) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, EXCLUDING FROM FEDERAL GROSS INCOME THE INTEREST ON AN OBLIGATION OF A POLITICAL SUBDIVISION OF A STATE. THE HOLDERS OF THE SERIES 2014A BONDS SHOULD TREAT THE INTEREST ON THE SERIES 2014A BONDS AS SUBJECT TO FEDERAL INCOME TAXATION. THE INTEREST ON THE SERIES 2014A BONDS IS NOT EXEMPT FROM STATE OF ILLINOIS INCOME TAXES. TAX EXEMPTION - THE SERIES 2014B BONDS Summary of Bond Counsel Opinion Katten Muchin Rosenman LLP, Bond Counsel, is of the opinion that under existing law, interest on the Series 2014B Bonds is not includible in the gross income of the owners thereof for Federal income tax purposes. If there is continuing compliance with the applicable requirements of the Internal Revenue Code of 1986 (the "Code"), Bond Counsel is of the opinion that interest on the Series 2014B Bonds will continue to be excluded from the gross income of the owners thereof for Federal income tax purposes. Bond Counsel is further of the opinion that the Series 2014B Bonds are not "private activity bonds" within the meaning of Section 141(a) of the Code. Accordingly, interest on the Series 2014B Bonds is not an item of tax preference for purposes of computing individual or corporate alternative minimum taxable income. However, interest on the Series 2014B Bonds is includible in corporate earnings and profits and therefore must be taken into account when computing corporate alternative minimum taxable income for tax purposes of the corporate alternative minimum tax. Interest on the Series 2014B Bonds is not exempt from State of Illinois income taxes. The Code contains certain requirements that must be satisfied from and after the date of issuance of the Series 2014B Bonds. These requirements relate to the use and investment of the proceeds of the Series 2014B Bonds, the payment of certain amounts to the United States, the security and source of payment of the Series 2014B Bonds and the use of property financed with the proceeds of the Series 2014B Bonds. The City has covenanted in the Series 2014B Bond Ordinance to comply with these requirements. 33 CO, of Des Plaines, Cook County, Illinois $2,020,000 Tarable General Obligation Corporate Purpose Bonds, Series 201421 $5,600,000 General Obligation Refunding Bonds, Series 2014B Series 2014B Bonds Purchased at a Premium or a Discount The difference (if any) between the initial price at which a substantial amount of each maturity of the Series 2014B Bonds is sold to the public (the "Offering Price") and the principal amount payable at maturity of such Series 2014B Bonds is given special treatment for Federal income tax purposes. If the Offering Price is higher than the maturity value of a Series 2014B Bond, the difference between the two is known as "bond premium"; if the Offering Price is lower than the maturity value of a Series 2014B Bond, the difference between the two is known as "original issue discount". Bond premium and original issue discount are amortized over the term of a Series 2014B Bond on the basis of the owner's yield from the date of purchase to the date of maturity, compounded at the end of each accrual period of one year or less with straight line interpolation between compounding dates, as provided more specifically in the Income Tax Regulations. The amount of bond premium accruing during each period is treated as a reduction in the amount of tax-exempt interest earned during such period and is subtracted from the owner's tax basis in the Series 2014B Bond. The amount of original issue discount accruing during each period is treated as interest that is excludable from the gross income of the owner of such Series 2014B Bond for Federal income tax purposes, to the same extent and with the same limitations as current interest, and is added to the owner's tax basis in the Series 2014B Bond. A Series 2014B Bond's adjusted tax basis is used to determine whether, and to what extent, the owner realizes taxable gain or loss upon disposition of the Series 2014B Bond (whether by reason of sale, acceleration, redemption prior to maturity or payment at maturity of the Series 2014B Bond). Owners of Series 2014B Bonds should consult their own tax advisors with respect to the state and local tax consequences of owning the Series 2014B Bonds. It is possible that under the applicable provisions governing the determination of state or local income taxes, accrued interest on the Series 2014B Bonds may be deemed to be received in the year of accrual even though there will not be a corresponding cash payment until a year later. Exclusion From Gross Income Requirements The Code sets forth certain requirements that must be satisfied on a continuing basis in order to preserve the exclusion from gross income for Federal income tax purposes of interest on the Series 2014B Bonds. Among these requirements are the following: Limitations on Private Use. The Code includes limitations on the amount of Series 2014B Bonds proceeds that may be used in the trade or business of, or used to make or finance loans to, persons other than governmental units. Investment Restrictions. Except during certain "temporary periods," proceeds of the Series 2014B Bonds and investment earnings thereon (other than amounts held in a reasonably required reserve or replacement fund, if any, or as part of "minor portion") may generally not be invested in investments having a yield that is "materially higher" (1/8 of one percent) than the yield on the Series 2014B Bonds. Rebate of Arbitrage Profit. Unless the City qualifies for one of several exemptions, earnings from the investment of the "gross proceeds" of the Series 2014B Bonds in excess of the earnings that would have been realized if such investments had been made at a yield equal to the yield on the Series 2014B Bonds are required to be paid to the United States at periodic intervals. For this purpose, the term "gross proceeds" includes the original proceeds of the Series 2014B Bonds, amounts received as a result of investing such proceeds, and amounts to be used to pay debt service on the Series 2014B Bonds. Covenants to Comply. The City has covenanted in the Series 2014B Bond Ordinance to comply with the requirements of the Code relating to the exclusion from gross income for Federal income tax purposes of interest on the Series 2014B Bonds. 34 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B Risks of Non -Compliance In the event that the City fails to comply with the requirements of the Code, interest on the Series 2014B Bonds may become includible in the gross income of the owners thereof for Federal income tax purposes retroactive to the date of issue. In such event, the Series 2014B Bond Ordinance requires neither acceleration of payment of principal of, or interest on, the Series 2014B Bonds nor payment of any additional interest or penalties to the owners of the Series 2014B Bonds. Federal Income Tax Consequences Pursuant to Section 103 of the Code, interest on the Series 2014B Bonds is not includible in the gross income of the owners thereof for Federal income tax purposes. However, the Code contains a number of other provisions relating to the treatment of interest on the Series 2014B Bonds which may affect the taxation of certain types of owners, depending on their particular tax situations. Some of the potentially applicable Federal income tax provisions are described in general terms below. PROSPECTIVE PURCHASERS SHOULD CONSULT THEIR TAX ADVISORS CONCERNING THE PARTICULAR FEDERAL INCOME TAX CONSEQUENCES OF THEIR OWNERSHIP OF THE SERIES 2014B BONDS. QUALIFIED TAX EXEMPT OBLIGATIONS - THE SERIES 2014B BONDS Section 265(b)(3)(B) of the Code provides that certain issues designated or deemed as "qualified tax-exempt obligations" and purchased by financial institutions (either from the issuer or in a secondary market transaction) may be disregarded in computing the proportional disallowance of interest expense provided in such Section. In the Series 2014B Bond Ordinance, the City has designated the Series 2014B Bonds as "qualified tax-exempt obligations". In addition, as required by Section 265 of the Code, the City has represented that the reasonably anticipated amount of "tax-exempt obligations" that are required to be taken into account under Section 265 of the Code and will be issued by the City and all subordinate entities of the City during 2014 does not exceed $10,000,000 except to the extent that refunding bonds may be deemed as "qualified tax-exempt obligations" in excess of $10,000,000, and has covenanted that it will not designate and issue more than $10,000,000 aggregate principal amount of "tax-exempt obligations" during 2014. For purposes of the foregoing sentence, the term "tax-exempt obligations" includes "qualified 501(c)(3) bonds" (as defined in Section 145 of the Code) but does not include other "private activity bonds" (as defined in Section 141(a) of the Code). CONTINUING DISCLOSURE The City has entered into undertakings with different filing periods of 180 and 210 days after the end of the fiscal year. Over the past five years certain filings have been late. The City filed the 2011 Comprehensive Annual Financial Statements (CAFR) on July 2, 2012, the 2010 CAFR on June 26, 2012, the 2009 CAFR on March 2, 2011 and the 2008 CAFR on July 22, 2009. The 2010 annual operating statement was filed on July 20, 2010. Since 2007, there have been in excess of 50 rating actions reported by Moody's Investors Service, Standard & Poor's Rating Corporation and Fitch Ratings affecting the municipal bond insurance companies, some of which had insured bonds previously issued by the City. Due to widespread knowledge of these rating actions, material event notices were not filed by the City in each instance. 35 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B As of the date of this Final Official Statement all outstanding CAFRs and annual operating statements have been filed. The City established procedures in December 2012 to ensure that CAFRs and annual operating statements will be filed in a timely manner in the future. In the Bond Ordinance, the City has covenanted and agreed, for the benefit of the beneficial owners of the Bonds, to provide certain financial information and operating data relating to the City within 210 days after the close of the City's fiscal year (the "Annual Report"); and, in a timely manner not in excess of ten business days after the event, to provide notices of the occurrence of certain enumerated events. The Annual Report will be filed by the City with the Municipal Securities Rulemaking Board (the "MSRB") for disclosures on its Electronic Municipal Market Access ("EMMA") system. The filing of the annual operating statement, with respect to statements in the Final Official Statement, may be incorporated into the City's CAFR or as a separate filing. The information to be contained in the Annual Report will consist of the annual audited financial statement of the City, and updated information with respect to the statements in the Final Official Statement contained under the captions "Retailers' Occupation, Service Occupation and Use Tax", "DEBT INFORMATION", "PROPERTY ASSESSMENT AND TAX INFORMATION" and "FINANCIAL INFORMATION (Excluding Budget and Interim Information Totals)". Each annual audited financial statement will conform to generally accepted accounting principles applicable to governmental units and will be prepared in accordance with standards of the Governmental Accounting Standards Board. If the audited financial statement is not available, then an unaudited financial statement will be included in the Annual Report and the audited financial statement will be filed promptly after it becomes available. The notices of enumerated events and timely notice of any failure of the City to file its Annual Report within the 210 day period will be filed by the City with the MSRB for disclosures on EMMA. The City's undertaking with respect to enumerated events includes timely notice of the occurrence of any of the following events with respect to the Bonds. 1. Principal and interest payment delinquencies 2. Non-payment related defaults, if material 3. Unscheduled draws on debt service reserves reflecting financial difficulties 4. Unscheduled draws on credit enhancements reflecting financial difficulties 5. Substitution of credit or liquidity providers, or their failure to perform 6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security 7. Modifications to the rights of security holders, if material 8. Debt calls, if material 9. Defeasances 10. Release, substitution or sale of property securing repayment of the securities, if material 11. Rating changes 12. Tender offers 13. Bankruptcy, insolvency, receivership or similar event of the City* 14. The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material 15. Appointment of a successor or additional trustee or the change of name of a trustee, if material. *This event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the City in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. 36 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B The City has agreed to the foregoing undertaking in order to assist participating underwriters of the Bonds and brokers, dealers and municipal securities dealers in complying with Securities and Exchange Commission Rule 15c2 -12(b)(5) promulgated under the Securities Exchange Act of 1934. The City will provide the foregoing information for so long as Rule 15c2 -12(b)(5) is applicable to the Bonds and the City remains an "obligated person" under the Rule with respect to the Bonds. No provision of the bond ordinance limits the remedies available to any beneficial owner of the Bonds with respect to the enforcement of the continuing disclosure covenants of the City described above. Failure to comply with the continuing disclosure covenants will not constitute an event of default under the Bond Ordinance. The City may amend the continuing disclosure undertaking contained in the Ordinance upon a change in circumstances provided that (a) the undertakings, as amended, would have complied with the requirements of Rule 15(c)2 -12(b)(5) at the time of this offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances and (b) in the opinion of nationally recognized bond counsel selected by the City, the amendment does not materially impair the interests of the beneficial owners of the Bonds. OPTIONAL REDEMPTION The Bonds are not subject to optional redemption prior to maturity. LITIGATION There is no litigation of any nature now pending or threatened restraining or enjoining the issuance, sale, execution or delivery of the Bonds, or in any way contesting or affecting the validity of the Bonds or any proceedings of the City taken with respect to the issuance or sale thereof. There is no litigation now pending, or to the knowledge of the City, threatened against the City that is expected to materially impact the financial condition of the City. LEGAL MATTERS Legal matters incident to the authorization, issuance and sale of the Bonds are subject to the unqualified approving opinion of Katten Muchin Rosenman LLP, Chicago, Illinois, Bond Counsel, whose approving opinion will be delivered with the Bonds. Bond Counsel has reviewed the statements in this Final Official Statement appearing under the headings "PURPOSE, LEGALITY AND SECURITY" and "TAX EXEMPTION," and is of the opinion that the statements contained under such headings are accurate statements or summaries of the matters set forth therein and fairly present the information purported to be shown. Except for the foregoing, however, Bond Counsel has not independently verified the accuracy or completeness of statements and information contained in the Final Official Statement and does not assume any responsibility of the accuracy or completeness of such statements and information. The opinion of Bond Counsel and the descriptions of the tax law contained in this Final Official Statement are based on statutes, judicial decisions, regulations, rulings and other official interpretations of law in existence on the date the Bonds are issued. There can be no assurance that such law or the interpretation thereof will not be changed or that new provisions of law will not be enacted or promulgated at any time while the Bonds are outstanding in a manner that would adversely affect the value or the tax treatment of ownership of the Bonds. 37 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 2014B FINAL OFFICIAL STATEMENT AUTHORIZATION This Final Official Statement has been authorized for distribution to prospective purchasers of the Bonds. All statements, information, and statistics herein are believed to be correct but are not guaranteed by the consultants or by the City, and all expressions of opinion, whether or not so stated, are intended only as such. INVESTMENT RATING The City has supplied certain information and material concerning the Bonds and the City to the rating service shown on the cover page, including certain information and materials which may not have been included in this Final Official Statement, as part of its application for an investment rating on the Bonds. A rating reflects only the views of the rating agency assigning such rating and an explanation of the significance of such rating may be obtained from such rating agency. Generally, such rating service bases its rating on such information and material, and also on such investigations, studies and assumptions that it may undertake independently. There is no assurance that such rating will continue for any given period of time or that it may not be lowered or withdrawn entirely by such rating service if, in its judgment, circumstances so warrant. Any such downward change in or withdrawal of such rating may have an adverse effect on the secondary market price of the Bonds. An explanation of the significance of the investment rating may be obtained from the rating agency: Moody's Investors Service, 7 World Trade Center at 250 Greenwich Street, New York, New York 10007, telephone 212-553-1658. The City will provide appropriate periodic credit information to the rating service to maintain a rating on the Bonds. Moody's Investors Service has assigned the Bonds a rating of "Aa2". DEFEASANCE AND PAYMENT OF BONDS If the City shall pay or cause to be paid to the registered owners of the bonds, the principal, premium, if any, and interest due or to become due thereon, at the times and in the manner stipulated therein and in this ordinance, then the pledge of taxes, securities and funds hereby pledged and the covenants, agreements and other obligations of the City to the registered owners and the beneficial owners of the bonds shall be discharged and satisfied. Any bonds or interest installments appertaining thereto, whether at or prior to the maturity or the redemption date of such bonds, shall be deemed to have been paid if (1) in case any such bonds are to be redeemed prior to the maturity thereof, there shall have been taken all action necessary to call such bonds for redemption and notice of such redemption shall have been duly given or provision shall have been made for the giving of such notice, and (2) there shall have been deposited in trust with a bank, trust company or national banking association acting as fiduciary for such purpose either (i) moneys in an amount which shall be sufficient, or (ii) "Federal Obligations" as defined below, the principal of and the interest on which when due will provide moneys which, together with any moneys on deposit with such fiduciary at the same time for such purpose, shall be sufficient, to pay when due the principal of, redemption premium, if any, and interest due and to become due on said bonds on and prior to the applicable redemption date or maturity date thereof. The term "Federal Obligations" means (i) non -callable, direct obligations of the United States of America, (ii) non -callable and non -prepayable, direct obligations of any agency of the United States of America, which are unconditionally guaranteed by the United States of America as to full and timely payment of principal and interest, (iii) non -callable, non -prepayable coupons or interest installments from the securities described in clause (i) or clause (ii) which are stripped pursuant to programs of the Department of the Treasury of the United States of America, or (iv) coupons or interest installments stripped from bonds of the Resolution Funding Corporation. 38 City of Des Plaines, Cook County, Illinois $2,020,000 Taxable General Obligation Corporate Purpose Bonds, Series 2014A $5,600,000 General Obligation Refunding Bonds, Series 20148 UNDERWRITING The Series 2014A Bonds were offered for sale by the City at a public, competitive sale on August 18, 2014. The best bid submitted at the sale was submitted by Raymond James & Associates, Inc., Memphis, Tennessee (the "Series 2014A Underwriter"). The City awarded the contract for sale of the Series 2014A Bonds to the Series 2014A Underwriter at a price of $2,009,850.00. The Series 2014A Underwriter has represented to the City that the Series 2014A Bonds have been subsequently re -offered to the public initially at the yields or prices set forth in this Final Official Statement. The Series 2014B Bonds were offered for sale by the City at a public, competitive sale on August 18, 2014. The best bid submitted at the sale was submitted by Hutchinson, Shockey, Erley & Co., Chicago, Illinois (the "Series 2014B Underwriter"). The City awarded the contract for sale of the Series 2014B Bonds to the Series 2014B Underwriter at a price of $5,721,986.13. The Series 2014B Underwriter has represented to the City that the Series 2014B Bonds have been subsequently re -offered to the public initially at the yields or prices set forth in this Final Official Statement. FINANCIAL ADVISOR The City has engaged Speer Financial, Inc. as financial advisor (the "Financial Advisor") in connection with the issuance and sale of the Bonds. The Financial Advisor is a Registered Municipal Advisor in accordance with the rules of the Municipal Securities Rulemaking Board (the "MSRB"). The Financial Advisor will not participate in the underwriting of the Bonds. The financial information included in the Final Official Statement has been compiled by the Financial Advisor. Such information does not purport to be a review, audit or certified forecast of future events and may not conform with accounting principles applicable to compilations of financial information. The Financial Advisor is not a firm of certified public accountants and does not serve in that capacity or provide accounting services in connection with the Bonds. The Financial Advisor is not obligated to undertake any independent verification of or to assume any responsibility for the accuracy, completeness or fairness of the information contained in this Final Official Statement, nor is the Financial Advisor obligated by the City's continuing disclosure undertaking. CERTIFICATION We have examined this Final Official Statement dated August 18, 2014, for the $2,020,000 Taxable General Obligation Refunding Bonds, Series 2014A and the $5,600,000 General Obligation Refunding Bonds, Series 2014B, believe it to be true and correct and will provide to the purchasers of the Bonds at the time of delivery a certificate confirming to the purchasers that to the best of our knowledge and belief information in the Official Statement was at the time of acceptance of the bid for the Bonds and, including any addenda thereto, was at the time of delivery of the Bonds true and correct in all material respects and does not include any untrue statement of a material fact, nor does it omit the statement of any material fact required to be stated therein, or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. /s/ MATTHEW BOGUSZ Mayor CITY OF DES PLAINES Cook County, Illinois 39 /s/ DOROTHY WISNIEWSKI Director of Finance CITY OF DES PLAINES Cook County, Illinois APPENDIX A CITY OF DES PLAINES COOK COUNTY, ILLINOIS EXCERPTS OF FISCAL YEAR 2013 AUDITED FINANCIAL STATEMENTS N Z 00 Z F F- aW r a Z M 0 LL . O a a N F E W 00 0 U N Primary Govemment e a E o (0 0 E E a E O V( t ttl d N > Q 0) a ) M ' 00 co CO 05'5.;... (0 0) CO 0- 0000 CD � NNaa[) h0M O C+) M.M-.N-NM 23. '0'4 (000400), N co N. M N t0 r M (O ' r a kft )MON 1 N ' 0- r 6 0 0 « r a O 0 N Q 0 N N 0 W 0) N.- (00-000)0) u) N 0- OM 0O0- (0 W 00 M 0 0 aa of (0 (O 0 M CO I N co 0) M 0 co a a- 06 CV- MN M (O O O W M 00 110 CO MMo COM000r- �06 Na 0- M (0 0 -0 -1 - CA G O N N 0) 06 m M yA N m A-1 c0LO0ornm m N O o o, 03 0 a CO CO .- 0 N CO C00 O M 0 0- N CN') 8 00 a � V N r to m 00 'CO CO 0 ' 0 (00 (('2� o V N N ~ N 0V 0 .- CV CO 0) d' t0 N t` C00 0 0 MCO (0(0(00400 0 ON N MM M N N 0 0 CO ((0 a 0 V 0) cn Com), co O1 N N 40 N 0M W ( COM (0 N O) N-.. : M C) N Naod 04 (0 a0) CO 0) r N M 05co N ) ) ) 10 N b co co N N ( m O M I - CO 0 W (0 8 W N $ 240207.293 S $ 32.309.465 $ 207.897.828 {{ \k {! \) /(((\$ °!®§;r! F.N 12= ( 49 \}\ | 69 4 4V P. 69 \k\ (\\ 49 49 ,.,.,,,, N .,,,.,,,,.r!» \\rN8;:po57;#( %i, \\ tti \6 wE 500 �oo z(2 \�L\ m/)§ 00(* [z/ 00 0 00 5 70,528,324 in the statement of ne Total Fund Balances - Governmental Funds nancial resources and therefore \} 22 \( §!, �$ \)} 01 ;> ?3.2 uSLE ;< Internal service funds are reported in the Statement of Net Position as Governmental Activities. 5 207,897,828 Net Position of Governmental Act $ 4,842,800 1..2_242 72 1134,170,563 ( FF \) ! A3 $ 4,509,844 $ 72,405,944 712 4 Ln Rt j / :rey�� 2lin \\ 8,88°82 ~ §k EHE rREWE \ &$R¥f 44K `©~7\ /«9 • \�< ( \ \ \ \ ! o E Change in Net Position Net Position at Beginning of Year (as Restated) 21,017,269 12,591,051 S 4,416.628 226,346 $ 31,853,404 $ 12,147,925 Net Position at End of Year ) i ) $ 1.487,110 2k\\$\` @ >,%, § co )41 \ \\ddd\( N N ei 0) NI 69 69 0. PaN g3 2.28 tgg 69 , \ k 2 !! § ;)#! thy -3U2 ;§§((k kj<<0t \(� 129.391.381 ] ;\ gZ ! $ 129,473,178 TOTAL LIABILITIES AND NET POSITION Emma k ! { a ff'§ La F,V \ )/ NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES }k �\$ o ,r eft LO o o \ co ( Total Additions CO \( oi Total Deductions CO A-7 Plan Net Position at Beginning of Year $ 129,391,381 Plan Net Position at End of Year wz w z W J Q 0 W - N JUo (<5 w Z 0 0E8 LL O O }O I- I W U0 z NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) .5.5 m N ON.5r 2 g"L',m T n m N O O'�0 C N N w c 0A2= m 8 ° qU c C m0 m C •° U « m C m m 5 m L m .0Emo� E a n ;LP E (0n c NEE w m•c N 22.02 N Lm U b a p N o O m m m L m .- N Q r C m 3 o m a (°2 d a�a 0 YO m N g a.5U a `mWw E2+a 88 cc E . w a T a '90. W malp, �LLa otter c m 010 0 m 4- m E F N 5 ;t1,5.2 0 'F'24 N C On C .0c a v w .0 m Ey U - O m N (73?, 0 N a G i N N m m•3 ov10E� N 0(009 o •52 m W occ°.!3 °«o EUc a« N .558,59 .Le a stE •5 E(0 ° «co Nm««°i S 00 .0 E >O L t° a.>5 - ° vg22 Sas 5ONa° ..'-a 020 . c.o rmnr `p • .F N d0° C o-11 ««m 2Em o io Z. 3cv52 NN N E m 0 °I C a m E' 5.g11 o l °1 C '0 > m 0 O N .L-. 1 0 8.0 C .14 N a N « m . y N E N °) C$ o m L f0 000)0. p •2 a=p ' m 8 m N mw N E E « O E N N O 'cEa Nya°1..00« OIC 2 N 8 0 E 1° c 09 0< 0 C N N d a YO .�-N «> N m N E m a Amo F�mFL-«$cE V y; m d U 0(00 The City reports the following major govemmental funds: £ cm m 22 0 ' W O N _ ca 8_m ` E 5a00'. xv,O «L 0 `274.2 8 >. c 0 , x 0 ',01: I o. ° ill es0 c� Dc 'C N N a N atE2 .61! �(aICiNN«0kmO. av(00 24228 a .mcm�m o. (0o or c0 m - MI U N 4l N N 8 Ea'm cco m= m 2.0§E N .'vQ 2 !!E, U £myi .Lm.. g" O Ah 1701 .8N Y5 O ¢m2 0 s5 E maa 2# aN� CyvHOw0U5n d N N. w C.L. N N z 1i-8741 ,L O a m O .r E L p m m aadc UOo.l.°-..1-o c°-a/acLN. 0) A C L 1° 10 m T N c 4= m (r G ,,s..., -.5E_,. Cm N' C« mNy U d E r p 0 1mi1 O C ,t9 E N 2 mJ n Lm-•E$-oo0.o Uwc E.c.�«2P E >` N@ m 0 `y 0 a) _ E Esm 111 -2 -0 --..gm 0.8.00 (0 O n; N a O U10'O0 N 2 O m N«« N N N 0. N Z' ?. - (° N N U N = C m •c C° i° �° m •o a1 d N 8 OO O a y ~ C U a ,O d 2aaimmo�raal.co 1C`n'Ummm �EP1ENQo�y L°o°12•_i N 0 O U ff >O II o N °,0-6"' N N ....1.>„0c4 0-.=0.0 L mU N 'v-1 •E 1n.i,,,11-2 a m v.0 O cO N L c a m W a C C« E@c a.-°wva0 2'50E9 N 2 n N M c .p LL m W •G J a E N .91 5oovii.,_ 9"gem k° •.,,i m > m c E E O N .r E 1C •V w o N d m E!- o p m o 1))D2°,037., p 7 E«« O N v c C o O) N o aa�°°l '2015! 0 m ac�°° o c 2.'.. dO0c.m-NO_N j o'9 0E m oct�SSwa=sr 555 ,$ tv Tym«as°1 l°a GO.d«U« W=.0 .O 2 m . N c mE g o >. m m .0 '. C2 0 0 0s2•cm 'U C a L C .8o a 0aC0am'acCmN3EaENaCmya pNOaFm ad LmNyCOm CmNaa Ntz 8«c EUmmU' «E° oC a Lp(.=aEanom mm • • A-8 Govemment-Wide and Fund Financial Statements: The City reports the following major enterprise funds: gig C N a L c m O N S C C c a n 0 QO N o 5.0'3 U .m C N C Ol m > 8 oU8 •,U 512A Um 8 U N = N 0<2 'm0 E 0 c m Him aov U y 8a m L •- « w ~ y N O U E L d 8 C N 0 C 8 C C UJ m m 4=2,S2)322 C o w o m a m l° C C „° N « • Q mwc _ f E N m �/ .L.• C a O N N m a C N C 0 v «- C O N N C L O d r C d qOq C � 25 v °Ni a O 0 O 0 CO 3 N U Z O N N.' QUa :rat; a_ o c v m N cc C , o °'5'5 av N n3Eao.28 • mz. „ a`1« E N N VO N O` J. D1 N C m C m« ;1211i7); 0) Oa- WEU 22-220:-.ZEc o.m m � w.'1°E C m C d° N N cvEo1,ln N C> C C 173.r2- 11 r101E1 yys w m 0 r N 0 0 m C a t N L 0) N8>m3 509 .9 c mom° a m> E@ D u 5 N 0 « N N . Ol N 5 8 N C a C E O N 0 O U ie°>5rnE �U N N acic�°ciEal E •m ° E 5 m c m@�4 C N Ur C N 8 The City reports the following nonmajor govemmental funds: • o0o�`c55E =5= 0 .0 0 L° m c y °Ei 'o cw 0a .��tY°1.°NN C !C N m m C N (`) V y C E m0 .L.. m W O 5 m• 5 2 m m a T N c5 m (0 m m N N O 0 N 1'. n m p 3 N 0>> O vo01o. c -E wraym•2--1102 .L.. d U 0 2 m p L m m N>° 6 O U --2E(0.7,21: N N a 0 N 3 c m K ~ O a i° 1050 mw=Ev0.00)i m ` = N > O a '0 O m O m? m m0 crnnw c(0 - N 2 L 2 O).. N 123.401'. 1 j8 .. y C U a> 3 ' E E 8 o E d a o mmW°ai °`12 3gtN L m a E 5 E N a ,U d N N y N N a N Z C U O 01 1 +L' F- ) 0 E r c a E c 0 N m !C 41."6.!4t2013 y' d C E U> w.- N m m mad•'cc >> X58, .18`555 z zW W J - - (61-aur, (• .004 z J — QM 0-Z.0 W Z E pLL(0 Ooo U0 Z NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) a `o O rn ln •OGc LLN �a mC o 3 c22 fN N E l S .o a. Emn. Sa fN ✓ « m o w 6.:$ odm2 m asm m cl• O , � e- 8 8 rGCy+ L . O o c a ti o L my N a w N N N '_> . NO a o v g of.N' o 2.G'co,.. af f31-14 • o §NE o0 0fOO« 8 < o .S C U 09 O_ON1U oN 00 EaG o ocot0o_ t.°- 23 -.9ON Ok. ` N« gill VN 4.3 •' U C a G N d c -E o E a l ccc o c U a 5 E R. Lm 8,0 c.--.2E co a $c w c E.o00 .2 ov =Na a) Tc;' oa m E.OE m .oma 2-E o m c III y.c �° d Uolg 00 oE�' N a N N o U a N 4 N O . N a U G N•C L 15 .. N c C_ 0 C OI N G C « 'NO c N N p -17 >> m G ° y c o E e 0 2 € 8. TLLyo E'&'E c8 E�'rn ° w�0 'c o -ti m Z a �m ` 'Fa e GP m p N o 'K a iif;',,,,, 8 '@'C O mcvo aNp N W ,DELI y S N t c O co U 8 g8o =va if 2§ • • U • a • • The In a A-9 d c a o c ma 0,8 Ea_ NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) nd Net Positi A-1 0 h � Ow z2 W J Q aM- W (n N ,am go;, aZaa W Z 0 00-5 000 l- W UD Z mZ W ZW J Q � w W N • M 5U� az<N W Z N 0LLd 0.00 }O}F l_W U8 z NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) a a N N 88=8,s. C Y QW ° a y C d a C C G ° . (0 y N N p 5 - a�c`N 0) .2 0 . 0) C C U1 = N °' a j N w O U 5 N s t O. N me c EO m o �to6 62902,=u; O L C 0 S cN O1 O: a O N m O ° • N •- 10 m 8170).0 00(1052 > a (0.�'0c N _ cN . L_ C G 50.2o n m y c E aci N o o c > , a N O !'02--51 N Na� N U C LE .N2,"°) N N > N S NN (pT(a.OS•3 U N C C y .0$ o c G E ¢02000001 49.:.811 0)3 a O :p 8:5.V3 N N > at 2001/42 N t°15:1 m Eoo U � N az 0 a O u .Ec .5 y N > U N X E C 1, N -049 C N G E U c x t N_.� O N O O c" -A0 a O_o C C N N a wNow>@ z•m ° y c 111 o N N N Naa )( Y N 5 2 e2..„1,u o abg y v (A11.2 OI O C U7,1 • N � .0 wN N L C O CLL82 5 N N N .O J : c0 N O A'S O 85'N m Ev o 5N 'C« N O. -N Na O C C N 2 `O m a 2» m m 3 w>• V oi5 `o F N N N .S. Q> N O U 5) U ' T d N C i a T C N L a) N .L..' N O 'oN 0Of.C N N N N.0 O C N:_ Y N 8 N al 'O U C N C m N N c N O 73 U -50500 C S N `I N . a m o LLE N 0 2 m E c a U LL a 0 0 0 0 ;ti NC N o= w y o 5 Nam=ma.' S • 'G U a U C a u 2,7,20-2"53" V -7.41;,!O N • NN== a O 0 0 35 N N 'NO E S N w5 .50'0'0 4 c ja a) N o '� N .N O. lV N F h E C C d a O'C O N C N NL•Na O.0 as 0.- N N N d N N O C N O F 'pa -'048 N y N N y C YP .N,.. C O 'O Om O1L A N >,(0 E°1 "a0E N E N 0 da N 0 N O r L C a= U O G O C 0aci.'`i EO N m 8 °a m g t 2,20.0 N a m N mov 0)� i C C E � U d N �% Tt tt� 0a0= 40 0 0 m o 5 lira" C No=« C N S v,03N��E O EO�N o O C N 0 O,t OSa N a a tN 0.- c ON mEEa E ' c ol,� L' (0 o 5.9,2 00Nm0.022.9 C Z 0 0 0 10E`>�1 N N U m Cw > a1 m a..5 c5 U.. al Oa ai(Y`paci3 9 E E c a 00 = a m C a 0 O p N > N d= U G E O U � O' � N O a E 0 N m y C U > c m Z m c> N L y m .5 Cl U_ N m N O) C 3 N 0 a 0 0 N j 0 a c C a G 0- N N O > E N U N N J d O. NN 0 - a o 'U 5ya c•=a 3�,555 a= C m N c N O N N N « C_ a �> a � N N S O° 01 N C N `t 5 3 0 1 c La c.5 co~ w Emc E 0 r a dm o0) A-11 N O N S G L N a N ° N -5'p% • y .0 6 N C N S mc F lL c0 030-m. c .0 C N — O = c O N N kE % 0 Cma1 N — c c o€ PLL NO2. i W Z Ow Z 2 W W w N Z Q M azo WQzE °lid woo 01- -68 I - U8 Z � Z ow w W co(p6) Z Q M azw (2<E w?o 0Wg woo 01- 7_58 1- U8 Z NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) O 0 N 0 O-0 Ycl c>5 c0 §0214q: J ° N O x N N.U d N 5 'S33UN O 0 2 y o5 m « pNp N O a O N U 3 m 0 g c c m c Eo«0 O Q C N 2 o ° c �:. 2 N. y o oN m O m °30° E« a h m o l.g 5 'p 2 V . �' m-0 c 0) a > - « m c a8.2§.02 O 0 rmt5 ▪ m o . E N 0 0 0) N 2-4873i18- a .{ Cy N 2 C y0y O y L E Y ~ 0 . J 0 O N 0 > 0 E m m p 5 T.5 V.5 N N w o 3 O O L O 0 5 E H1 E m 0 0 E95.0555 > 0 0 L U E 0-0 3)F O- B 6) r c `6).t `oEyt oi5 LLm y_a3 N y «yL(t5.0 a > c .",...8 a(yp 0, � p N E°'•c- Emo 084=P0'5.c 10 E 0-3 m a c II, 2P15 y m o 2 m c 3 c a0) 0),932 0)L a a s �_ c a a o O O 41.2 1. O ST N .2“-8 -5D_ -222 N w a455 m 22 Y r N .222 A rn aE_0 m E. U C i C J C N d 0 01 0] 0) i 0) 0) -p N t`0 L O N c ... LJ od•N ▪ 0Oad6)'g 11-g2 9.1 N2yp.3ad 02.2mEOa m3A .2--. Q a .5 yyC-N 3)88 YO 2 J N �i.79-''i� °E 'Salam '8.2 �'OS Wmm° y 'Op U E 0) O 0, 0 E a E 5 .o.L a 0Nm 5.-0) a -m-' _ O' N O tm 0 0) T 3 Jm. a 1,5-2 y 0 .n L J« N c)52 52`W o T, M; J m 6)° 26:8E O L.-` J da!�0 LLE m-0 F 2 a C OO Y N N m a E.22 a)_ 3 m No. -2(01'S � `o2 SON°°`o ggt% >'422 W N N M W W ,«_ t ° N 5 `o m 8.006) f3 c Patm c o m m 072,E 1 m 0 > «c E 0 mo a 9 N D E O a t a C m o 4111 0cc0.5 o 2 c 1(47- • A-12 at do not meet the definitions of "restricted" or T G > N 3 (51:62 -447, ESSA N d� o N ▪ " N E E > U !�1 N'0 p O d .9555 3EE°a • O "2'00E O O O O =0L O C N N O N U >)0 ad c3 a r E - 0, 01 c90) 0) 03.3-0 °'omEm lo:E°m)« N m > L U 50a3L 2.0" woL2a -0 L c 5 a •� .5N C N L 3.O 0I OO 5212,42--g >0 2' a 6)0 a 53 LL0g m3 w Z Oa Z 2 _11-m 200.1 Z Q M aza W z a ) OLL2 w o OF - 1 -w 55 Z NOTE 2 — STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued) NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) N Q (t° v LL t12+2 � M�{Oao,7NMa0I` N.- ...t OOI,-WM,MMMh � •C = O •fMcr (V Ea NM0aN� M OONN 8 m 6.> C A O T m w M V < ^N N a X.Z' m U 7,fO N0(Vj a0 0 . L 4 � cO tOO GO -(C -(0000 C S„ W r V —`-M M oO m co ('i m 5 000csio��`OrMo �a O O N CO f: I O M (O p. x()0)0)0)(0) uirn ON(01�01'.00)OOM '0 5 E m N N E°1 Wm> - 2'8 0a 00 rag U g a o c m a y 30mo .20.0� (-0 E .L-. OA .� D s;-0. a o 5.0= mmm E1-5°. O '5 _o m m 4g2,2155 o) m= N C @ U rn@ym.. =O W N a« y w ° mO, a 000 8—o—=, -s. .)-01, $):914.1.5 :=,2 3=c mDF-D'°—cm warn m m D� o y m« m C c m @ 'm0 C Vmi �' ,� C D> Vmi C m c OO ' B_U m D"OI 2:56C 00052c2 :y° p(lm. m C .0 ;2! 0) O tO a c = m .0 2. c /'7O w 2 ' ' N 5 '�F 268(.:22-02g E m m `m � yL O:av'E c « 0 0 2>,;0-4111: 2 m m 5 ▪ D E,-.P2yy3 •2' Er'(i5 wy= =via @ Lm N c C '°04..a.02. D .1O oyyam!D yNTCm•y N -6.--.80-2“, = 0 .N=8°2E yoai^§ _ _ . y.� E 2.2A ammwcg m -(p ‘,j.1.°2 11) C .m.. N O m 'y U N (r E.,2-22 N m NCNg'Li cD= ,Za p @ m c .° ¢«2Orn�Emg E 'oc U � m C c E m A Proprietary fund equity is classified the same as in the govemment-wide statements. A-13 NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY As of December 31, 2013, the following individual funds held a deficit bal LL .57H11 � �oom 2.20 -.NE p° Er E m N d G U m m 0 E N �a@_D C m X m Uc clic 6▪ 2,220) mocO1 0132.024, .0 o m m p Q U y N V m N m ▪ m m L L 2,27M12.2 ii Z� rnD 14.2? ) t rna D D O ▪ w E c UEw �'c L 080,0 = N E 52 y Q T( @ ., m .p mom d UV=•O E E�Eam m y .2x)9(0 O o E oD O m M T O'p U m 0 E = 4.amMma N 2 Ow 2 W W - N Z ¢ M d Z.0 w?v u00 F -W U N O Z NOTE 3 — DEPOSITS AND INVESTMENTS NOTE 3— DEPOSITS AND INVESTMENTS (Continued) The City's deposits and investments at year end were comprised of the followi Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its O 0 0 (A O M N V O o �O M O mm m �nmo (oM N 1, N O r lM (O of mm (e(�' co <- o o q M_ C N M fA 0 0 A-14 Total deposits and in d O© 8 V 8 V O t2 O )0,0), Ih (V (c(+ppi N O O W V �j (N�fij (^O m h N V M N fA C E m 0 c y 0 m o 0 N O z J d � c E C N C 0 N O Ea c E L> my :Ea 0 0 w 0 c = m m 0 N U' 3 � d O m E r , mo to' a� o Cly N N O m m 8 430")O.1 ON E�m m m"0 aJ c m � w w 468 N (0 m N 10 N C o N G8 0 2.ac c 0 u<0 > C .2A Cm 0'8 r m N cY > m w u8 m °g m a .0 d.04 N C C > *§". @ �Vo li .sm. N � � n C m O L_ N C C C> O N U m Total deposits and investments The City does not have any investments exposed to custodial credit NOTE 4 - RECEIVABLES NOTE 3— DEPOSITS AND INVESTMENTS (Con All of the receivables on the balance sheet are expected to be collected within one year. terest rate risk is the risk that changes in interest rates will adversely affect the As of December 31, 2013, the City's investments and pen ,§ k} k) 7 0 \ LO 0 CO 69 ( „ 0) LO 69, ($ 430.032 $ 30.924.595 2,134,929 $ 28,359,634 \\($croiLONCOOD056 \\\/MNMW co Lo La ( (§ oicsi \ $\COCO .D ON 7\ ((& (q ®/\ k(([ \ } $J #§\ 7 to f) I\\}\f\ :,j±°e ®E .0 '.0 .._,,,m,. o_ 0 a ow !C£m(& a ,it.3 )3!£637 0 0 a. A-1 5 §\ 7 (\ (N- \,(,\oo \/ ± S (N MN 0 7em $ \(5// f (\\(E ( \ ) d Q co W U) N ZQ c� <E W z N pLL� u. O p Or U0 Z d J Q � '617). Z ¢ m o Z Q W Z N W W0 0 W U5 z NOTE 5 — CAPITAL ASSETS (Continued) NOTE 5 — CAPITAL ASSETS Capital asset activity for the year ended December 31, 2013, was as follows: co E a 69 69 0) Total capital assets not being depreciated n m m co N co CD N Cri • N 69 6, 1 69 N 8• N ai 69 � c� nnN 6J N O n O N Ir0 O V °r m 0 N 1� ; "N n a o fOm4 CO M mJ r o NNOyI (� 00D W Is CO N.. M •- C O N 0 M N N 4 N V,v`-^ N co $ .30,457,180 $ (603,940) $ - $ 29,853,240 Capital assets being depreciated Buildings Improvements Equipment Vehicles Total capital assets being depreciated Total capital assets Less accumulated depreciation for Buildings Improvements Equipment Vehicles Total accumulated depreciation Net capital assets being depreciated Total business -type activities capital assets, net of accumulated depreciation 0) N CO N 4 co co co N N 0) ti r A-16 293.097.237 cocn 281.494.789 Total capital assets O Om{0 N V A M 8 m 2 000 srn m (r` u1 � V N N M rr N 8 nyy r m N N M *The beginning balance was restated, see note 12. 112,291,363 5,482,100 Depreciation expense was charged to functions as follows: $ 185,152,027 $ 5,650,892 $ - $ 190,802,919 Less accumulated depreciation for Buildings Improvements Equipment Vehicles Infrastructure Total accumulated depreciation Net capital assets being depreciated Total governmental activities capital assets, net of accumulated depreci cif ag 6, Depreciation expense was charged to functions as folio Governmental activities co H9 F9 H N O 001 N N- CD nm co • 10 M N M a- M (0+) O N r a CO $ 6,123,417 NOTE 6— INTERFUND RECEIVABLES/PAYABLES, ADVANCES AND TRANSFERS (Continued) NOTE 6— INTERFUND RECEIVABLES/PAYABLES, ADVANCES AND TRANSFERS The following is a schedule of interfund transfers: Q0 Transferred To Fund financial statements o O . E C 2 V O ¢ h y ON d O E O0 'O d N ' 6 N N Ig d N Vyi a a N 1/� •per' N 8`a0,a `2,080)0 a • r 12 1- q LO CO 0 rO O oN P1... N O O M r O r iii �NOO “:, N n N o N ( m tri N P. . 8 E E o mO E 4N y n o E m m 1 m pE ' - m 3 a Qct n �@ tt @@E qq�� 2 F k U' U C Z U U d O p C_ Z € m j 0 N ¢ Payable Fund Receivable Fund ro CO 03 0 0 (0 ri fA CO 03 c9 0 CI CO M1 f9 0 CO 05. 60 Total - fund financial statements C Q�Q1 C C C O O O a p) al O E .O O Parking system A-17 N c N Z' a m O N U LL d L 0 c E c ~ LL c 3 v S o d M L (62 Non -major governmental Parking system c m v 0 a 8 0 C LL 0 O a LL E E N 0 O 465C LL c � E y E E o NU O O •N oE c ei c $777,873 due from Water Fund to the General Fund is for cash overdrafts in Water Fund. m F. N o 17rn 6i co N ..4. V O O Total - fund financial statements Less: Fund eliminations f» §\ -j\ )k\ m\f Mme ot- [8 2 NOTE 7 — DEBT ACTIVITY (Continued) NOTE 7 — DEBT ACTIVITY )o { k}\5 8 8 }E eEg 82 ee 8 0 0) :ogt :12CO E 2k§) iotE 0V),2 \\\/ 0 /( /) j a \ ij _/ ',°i,Ti ; ; \ \ \ \ \ )) 04,g , ƒ) }- h kE \� t, k, j~ )� , 7` r )) »! {4 2; iM (,)J, /° , , $57,316,878 $ 8,482,437 $ 9,725,000 $56,074,315 $12,935,000 Log \� 57, 0 0 j\ k\j"6j )® Na I \0 j CO 0 \\ I \02CO A-18 g\ /\ j ] H wZ oww W - Q 0 W 0N Q M gEiw o_z.5 w? NOTE 7 — DEBT ACTIVITY (Continued) NOTE 7 — DEBT ACTIVITY (Continued) Debt service requirements to maturity are as follows: Tax Increment Financing Notes at December 31, 2013, consists of the followin 00 0 0 00o 0 0 p0o 00o V cN- <NO cN0 l COta CO O O N N to co r co N O� 0 0 0 0 0 0 0 N N N N N N N0 N ments to maturity are as follows: Debt service r A-20 m } N CO00) 0^ n CO NNN O o o 7 co - N N fA C9 C9 N CO CD CO a- a- CO 91§. .0 CO CO (0 n 69 69 o o .0 N •Icncot—md( F° N N N N N N Loans Payable: Loans Payable at December 31, 2013 consist of the following: mrfrEAcra0 O Z Z 2 J Q � (0 <N1 c7, Z Q M co<coa ON N O 0 O0 F W 38 Z Z Ow z2 J W W m- 0 Uv n. << E WZv OLLv -0O {- W U8 Z NOTE 8 — COMPONENT UNIT (Continued) NOTE 7 — DEBT ACTIVITY (Continued) N (0 O N C O_ a N N a N c « N ;EVE; c N G O Ol.. a E v c N iO 0 ` E d m 'O E O x n V N E▪ � N T o Na 0-0.E.5.70 EEEo E O oa a 21'131m •0 v�Q 0 C EE E� N Ow yL mwoa,, : N 0 2.0 • 10.c c N N › O L o a m d 3 N d OI ° ✓. E=ydc•- N y OI ° j >.••2 o O j O E U N c o E E'c«cwm c E o O 0) E° y w E N N «O.� E ¢E.(.00 a of (gyp ^ Cl En o.�0)•0 00§2.2 L 8 ° -°0 — 0 . N v w To date the General Assembly has set no limits for home rule municipalities. NOTE 8 — COMPONENT UNIT Component Unit: A-21 co Deposits and Investments: 0 N N N a N C E4: m m N m § 0 0 Z eo (O N 0) LO 03 r WW (O M M co Total deposits and investments $ 5,918,494 $ 5 8 `1 N � Z OWW J Q W M 1-0 ? Q M 3U;, aza w?10 X00 W U8 z NOTE 9 — EMPLOYEES' RETIREMENT SYSTEM W 7 N M ^W N• M N O VJ ▪ On w N M r 0 m E 0.a c fi NC y E ac N N n Q `- n3 c E w > 0 Total capital assets being depreciated M n M... M tef a m fA $ 802,700 $ A-22 . (h N n O E 9 O N rjaU U p • N C o'30 62 11 -g T m n N N N N Z5,7„ � N U • M a(n a, a y� • Eo0) O 8 O N N (O N nto'` a,Ec • c a m .c N 8Ew 'v w N > 5 c a d E W • ' o c a > N O m m z o t 'O Ta ~ N U jt At E m1- O > N O N II rn33 ¢ ov 0 m d o 0= N 3 0) N m E E N .2 y O d m U.9M At December 31, 2013, the Police Pension Plan membership consisted of: (NO N OZ OW Z2 _0-01 W N _ Q M aza v 0 LO. U0 Z NOTE 9 — EMPLOYEES' RETIREMENT SYSTEM (Continued) NOTE 9 — EMPLOYEES' RETIREMENT SYSTEM (Continued) At December 31, 2013, the Firefighters' Pension Plan membership consisted of: e Pension Plan as provided for in Illinois Compiled Statutes. The following is a summary of the Po o (od. o u)ch rn ` • N Z m « 0 ,>,.24z2 0t.. U p Old L a p 1,?.217;8 .002276'210 �•N4�Tno`°m zt: td0 C. O O m> 0 m o 0• o. 4, m ▪ (0 N a W o .0'822.1g 0 m 010 0 « N N m m U y N OC p O N O z.0 O o W N B 6 8 N• 'T:02,15>, m c m a oc000EE E` ->mm=" Of -g- MUi �Eyw -81• 1,°m32 « N O N O N N y T $9=0V(0mUt c$�yc>.o ami .5 N 0 t .00 M o= m m 1 0 Z` N m d� W 't" 0� N N p g m m 3 .cE v m , 1— N U N O) O.0 N The following is a summary of the Firefighters' Pension Plan as provided for in Illinois Compiled Statutes. A-23 oz Ow w w J Q 0 Wl/JN Z Q M a Z .o W z 0 0 a 2 }000 I- W UQ z NOTE 9 — EMPLOYEES' RETIREMENT SYSTEM (Continued) NOTE 9 — EMPLOYEES' RETIREMENT SYSTEM (Continued) Net Pension (Asset): The following is the net pension (asset) calculation: 0 O O 0)•0 4= C as U � C 0 V � N •A •C (0 Net Pension Obli fA m, N (0 (0 mm LOM 00 mm M 2 NN M 0 (a O n cost for the current year and related information for each a 0 0 a. 493,783 $ (674,255) $ (836,432) 00 0. m C 0) (» O N M N a 0 (fl 2 00 N •U N CO 0 w N 0) 20. li E 8 p as 0 E 55 0 .ac) m .E ME O N N O Ca' 2 N rn E a) w a C C a y 3 O 55 O c m To N 0 C O 0 0 p .,,, .� _ O (0 o N C O1 Cy — U 00"'00 0 0 0 0 0 (0'- 0) -g 0) ( 0 0 0 0 0 001 V' I� OIm 0p 0'0000 w0 0 02 aay I� (OMM g �MC y r<` -1 T a W J N Eo U } (0-(0 ... 0 0 0 (0000) M' ' MN.- �t00•� V OOT NOW' 0 O(D (000(0 WqM (p(00r 00,-vM00 MMM (007(0 C0.... 69 60 a0 N N (0(04) V M (0000) NOM v m 0 M M M (-4(4(0 .4:NM N0) ((ONr (( (0 00 005050 (00.0(00 N 0 rn (00 m 0 (0 0) 01 61 WOW 0-1-0) MO<O MNOff) (V N� g6 -,•e 0)400) MMW W.4 -010 N MMN (0(0 N MW M (A (A 60 N N N Annual pension cost (APC) T m 0 C 50(0505050 0'0000 0 0 0 0 0 0 E 0 T T 0) co co. 0 0ve ))d 000 V) I) o00 1,.:§;4M 0.0 E U A-24 M N - N N N Contributions made Percentage of APC contributed (004,- 0000 (4(4(4 Net pension obligation (asset) zz zw w J Q c w !O N z J r Q M 5v;, aza Wz8 O LL 000 OH F -w z N NOTE 9 — EMPLOYEES' RETIREMENT SYSTEM (Co NOTE 9 — EMPLOYEES' RETIREMENT SYSTEM (Continued) 0 m v c U 0) 0 00) m a 0 0 0 0) z 0 CL 2 0 C O a z 0 P V' Ea LL as n_ U N 2 �� N t O 0) C v 0 - Lr. 0 M r $ 4,032,598 $ O N a0 (O 0) N O O M lO 0 O r M n N (( 0) (+pp) {�{ h M V 4 M N t` O(0O N N 8 0) W M C G0 0 N) CO 0 CO 0CO N N N V 000 r N p V 0 M l(j O c0 N GGGG N M o N ar N 0 4 0 M_ (00 r W (0 (0 M 2 0 EN 0 M E0 EN 0) 0 E0E 00 y N 0 Actuarial Valuation Date m 0 (0) $ 11,694,243 Unfunded AAL (UAAL) (b -a) Funded Ratio (a/b) 6 Covered Payroll (c) UAAL as a percentage of Covered Payroll ((b-a)/c) A-25 ZmZ z W J Q 0 W (nN ZQro az .0 w?d pLL0 00p OI - 3 8 U8 z NOTE 10 — RISK MANAGEMENT (Continued) NOTE 9 — EMPLOYEES' RETIREMENT SYSTEM (Continued) es in Plan Net Positi N 'C U Current Year U 0 a L .- 0 a CD ( 0) (0 m r r (A N 0 V Nr- m 09 LO O T M 49 CO N v 0) csi 09 Unpaid claims - end of year LO 0 0,1 0 V. N o � M(� V N a h (V O N ai 0 csi 0 0- co m 0) m Oco N N CO 03 0 N 0 N 03cri COLO LO 0 0) 0 N N cJ N U N 0 0 C A O E C $$ C�i2 uu'' a N V ...2To.c p 0 W a.0 9 m E E a_ --0U ci Z A 0Qm F � M� A-26 2 co 03 V rn Ncri co N u M r.W 05 W N 0 o Change in plan net position Plan net position, beginning of year $ 67,305,198 $ 62,086,183 $ 129,391,381 (n Z W O2 -W Q s - W M N -“,(M ¢M c-56 (<5 W?8 OLL0 LL00 01- 36 I - U6 Z d �- W (0 N Zam aZa W Z N OLLd 0_000 W U Z NOTE 12 —JOINT VENTURES NOTE 10 — RISK MANAGEMENT (Continued) The City does not have an equity interest in the Joint Emergency Telephone System. v T 0 T T Y U C U M U c r c ON o c 0 0)� 0) Q)O WNOW vN 0.›,80-2 Nt c 2' m Ql -(05000c 0 .9900.5E �a O 0 L .L. O N > Z m ave oa N m 2-4;V,2,-2 « ; s O 0 N (a u.. 0) 0 al C v o e -(%? E.o9>aEE N'«. � ° N aI Q) O L O N > _ O N _ N O U��i3m m U•v•o N5°? v N v° v c oo_ t.. « 0 c v y_ 0 OO N E 0 0 0 5 0 0 09 n5 E m 0 N a1, -'N N :� Ut3-E-E v. `-a p;0,>U C 9 S O .E.O L O v'8.8.2 , «0 12 3 i''22 -1)2.E N N T v 0 •O gi(pp' )(i 5' 0 0 `2 OCI Vv 0cU ccU.- oifl�oto ,0 E yga-ca a O-WiU0H (0 215211'2 3 w c r (7q)2m,'42, M O U ('45 o 2 > (Od 0 O'm 9 0«05'N U v« 0aw O0o n 09.04 N 0 mmm0.0 = m N O a d U o4 N U 9 Q 0 0 wHa�0.0 v 00) 0 E m« m a� U G'9 O v Nw o m E 0 0 2 W 0 c 0 0 9091-. vt E c E ~ ° O 0 v 9 w N U oa 000� v o0) M'c v v m O N 4l'5 E vZ Ea 0 20t2, -s9 E C 0) L i z E o 0 c N E a) 9 N N a o v v Nor (0 C C e 8 v m 0 O p. U E 0 5 'm h H9oi,ac WWN 9 0) 7 O (000) yN N O N (4) C« d 11p! L» N C (aoo N•- .-M1-1- 0 �'" a N.O'.0 'o O 'C m•c a 0 0)c o 11 4")-E, N tom_� �, E m 'C C N O v_ Tl L '� TOL>.� v O N 01 a) C a) Et.-. > n a.0 U 0.2.$2 '0 'C bC b=9Ec 1"��n99' -.s.-T, E v 9N. -N CCNOa L«> > N W a -2r,• -4, . E a V E 'E u 3 2[ 00) 9( a= E 8 y° T N ° y 0 a) C a d TN aL v a m gYI- LEy Y a d c N O° a v E 3 c . N g N N N N.% N'(p N Tom- 0 m^ avi LLLLLLJJJ OCHNO OUO yOy QOM X « (A °-06-8 `p °- C 9 U O N O L nrn o f 42„ o E g@) U E..-90 c A E � E n N ` N 8"'G' r°.€8, ''.?-42 N .. M U1 2 1.1 -P-02.2 `� N a 0 d W Q N L N m N N O> Q C 8 C) C a 3 U C c N«= 9~ W C MU, o vo U °5 ma'i'l oma?oo g°E� ZZUQN v5x4v vi wY yOUSaUCod0) �oma° Ld7Twm go `m « C 7aON>o.5.._,92p0 80 Oy=E0 O90NNT E vw`o aai 'm `° mcLio .° o?. N€ F- m• c > I Eo >(Et) m ammqa« o"vrno� c0 0c 00.1tm°e 5-' .rno.oLO3m 2o228 mE 'IA Si ay a'- >E t n5Ij$m`o3 mEg ` ccs'- C« > oaC aEOa9o a5Ny d0N 0 o MEommrn i-<00 mo, O o 20 NO ,- O N M Oal '- 1- o N 2 N (O OM O M w N O O. - r of r e f-.7 e cz o • � N 8- NC CO (p 8(N7 7VwWNNo81rn9)i0)'Q C • N N M r g M N i N 1OT CO 9) u> M CO CO0) 69 m m G 0 c Sf9� c°49 A N 43.9 o C .4 8 E o E (�j '9 E 5q�. o. t m)t a E fua 4 $ c, U( YCOmgC,avQE E E •o d! 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NOTE 16 - NEW ACCOUNTING PRONOUNCEMENTS (Continued) NOTE 14—TERMINATION BENEFITS NOTE 15 — TAX INCREMENT FINANCING DISTRICT A-29 NOTE 16 - NEW ACCOUNTING PRONOUNCEMENTS Z Z F Q — O w o N OZ -J Z p M W K K N Z Y M w UJ O a (gwgE L W 0 thnon0co N W J UKn 0w wv mo 2.5 011.- a U -00 C T € a Q w 0 0 t ae W 0 0 t o e o o 0��000 100MMOV 00(00 ti.7 010 0 th aMO N V N M a}} M M m r (V N (V N r r 0 o a. 0 0 O M 7 N M O O y 0 mann.. m f0 O m (AN M V N (0000(0+)1) 0 a M N N M M M M M N N o 0 0 0 o N N M O 000 N Oro coNo) O N M N V N NNMN O M � 0 (00)100) (0 .- o a 0}M M (NO N 0) 0 O n M 0)0) 0)) 0 M M O M M l0 M N M W N N NV 0 0 0 0 c V N 69 H3 00000 MM 000) 0 rl� M 000 M O N N a (V 0)00- 10 ) N (V N v- 0 M 00 0 0 0 V:NMNNm I-.MNNFN (O 0)0-0)017 MM(`)NNN N M 0 0 1 N M N m W N N.-l'0}-C)MM M (�O N0 M I� o (0(0(0(0(0(0 100)0) a 0 M O N O N N O 0? 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WaEn QOT ( �i cyi �cmv avvvvv _ lc)rnmm oo� g ' mM g O Cl' m 0) 0- 0 Z U r 70 M t� M�{yy�Sn OI � � V NN ro([J a0 �-I� W tMl)lM() (C ro(�D 0ti000 t00 HUH N V 0 M M M M M 0)h N V V N (OVOi VNA Vi V N O m H RFA. M N- N a t c o r N f o r a (00(0 N N N N N N y N N N N N N a 0) N 0�V N N N N N � Nas r r r as OHM tMaNaMa rj-a A-30 APPENDIX B DESCRIBING BOOK -ENTRY -ONLY ISSUANCE 1. The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the Bonds (the "Securities"). The Securities will be issued as fully -registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully -registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of such issue, and will be deposited with DTC. 2. DTC, the world's largest securities depository, is a limited -purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non -U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non -U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. 3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book -entry system for the Securities is discontinued. 4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC's records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. B-1 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. 6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. 7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or the Paying Agent, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Paying Agent, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to any Tender/Remarketing Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant's interest in the Securities, on DTC's records, to any Tender/Remarketing Agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC's records and followed by a book -entry credit of tendered Securities to any Tender/Remarketing Agent's DTC account. 10. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to the City or the Paying Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered. 11. The City may decide to discontinue use of the system of book -entry -only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC. 12. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. B-2 APPENDIX C September 4, 2014 The City Council of the City of Des Plaines, Illinois Dear Members: We have examined a record of proceedings relating to the issuance of $2,020,000 principal amount of Taxable General Obligation Refunding Bonds, Series 2014A (the "Bonds") of the City of Des Plaines, a municipal corporation and a home rule unit of the State of Illinois. The Bonds are authorized and issued pursuant to the provisions of Section 6 of Article VII of the Illinois Constitution of 1970, and by virtue of an ordinance adopted by the City Council of the City on August 18, 2014 and entitled: "Ordinance Authorizing the Issuance of General Obligation Refunding Bonds of 2014 of the City of Des Plaines, Illinois and Providing For the Redemption of Outstanding Bonds of the City" (the "Bond Ordinance"). The Bonds are issuable in the form of fully registered bonds in the denominations of $5,000 or any integral multiple thereof. Bonds delivered on original issuance are dated September 4, 2014. The Bonds mature (without option of prior redemption) on December 1 in each of the following years in the respective principal amount set opposite each such year in the following table, and the Bonds maturing in each such year bear interest from their date payable on December 1, 2014 and semiannually thereafter on each June 1 and December 1 at the respective rate of interest per annum set forth opposite such year: Year Principal Amount Interest Rate 2014 $140,000 1.00% 2015 200,000 1.00 2016 220,000 1.00 2017 240,000 1.40 2018 260,000 1.90 2019 290,000 2.15 2020 315,000 2.40 2021 355,000 2.60 In our opinion, the Bonds are valid and legally binding general obligations of the City of Des Plaines and the City is obligated to levy ad valorem taxes upon all the taxable property within the City for the payment of the Bonds and the interest thereon without limitation as to rate or amount. However, the enforceability of rights or remedies with respect to the Bonds may be limited by bankruptcy, insolvency or other laws affecting creditors' rights and remedies heretofore or hereafter enacted. Interest on the Bonds is not exempt from Federal or Illinois income taxes. Very truly yours, C4 September 4, 2014 The City Council of the City of Des Plaines, Illinois Dear Members: We have examined a record of proceedings relating to the issuance of $5,600,000 principal amount of General Obligation Refunding Bonds, Series 2014B (the "Bonds") of the City of Des Plaines, a municipal corporation and a home rule unit of the State of Illinois. The Bonds are authorized and issued pursuant to the provisions of Section 6 of Article VII of the Illinois Constitution of 1970, and by virtue of an ordinance adopted by the City Council of the City on August 18, 2014 and entitled: "Ordinance Authorizing the Issuance of General Obligation Refunding Bonds of 2014 of the City of Des Plaines, Illinois and Providing For the Redemption of Outstanding Bonds of the City" (the "Bond Ordinance"). The Bonds are issuable in the form of fully registered bonds in the denominations of $5,000 or any integral multiple thereof. Bonds delivered on original issuance are dated September 4, 2014. The Bonds mature (without option of prior redemption) on December 1 in each of the following years in the respective principal amount set opposite each such year in the following table, and the Bonds maturing in each such year bear interest from their date payable on December 1, 2014 and semiannually thereafter on each June 1 and December 1 at the respective rate of interest per annum set forth opposite such year: Year Principal Amount Interest Rate 2014 $ 10,000 2.00% 2015 725,000 2.00 2016 750,000 2.00 2017 1,145,000 2.00 2018 1,165,000 2.00 2019 440,000 2.00 2020 445,000 2.00 2021 455,000 2.00 2022 465,000 2.25 In our opinion, the Bonds are valid and legally binding general obligations of the City of Des Plaines and the City is obligated to levy ad valorem taxes upon all the taxable property within the City for the payment of the Bonds and the interest thereon without limitation as to rate or amount. However, the enforceability of rights or remedies with respect to the Bonds may be limited by bankruptcy, insolvency or other laws affecting creditors' rights and remedies heretofore or hereafter enacted. C-2 We are of the opinion that under existing law, interest on the Bonds is not includable in the gross income of the owners thereof for Federal income tax purposes. If there is continuing compliance with the requirements of the Internal Revenue Code of 1986 (the "Code"), we are of the opinion that interest on the Bonds will continue to be excluded from the gross income of the owners thereof for Federal income tax purposes. We are further of the opinion that the Bonds are not "private activity bonds" within the meaning of Section 141(a) of the Code. Accordingly, interest on the Bonds is not an item of tax preference for purposes of computing individual or corporate alternative minimum taxable income. However, interest on the Bonds is includable in corporate earnings and profits and therefore must be taken into account when computing corporate alternative minimum taxable income for purposes of the corporate alternative minimum tax. The Code contains certain requirements that must be satisfied from and after the date hereof in order to preserve the exclusion from gross income for Federal income tax purposes of interest on the Bonds. These requirements relate to the use and investment of the proceeds of the Bonds, the payment of certain amounts to the United States, the security and source of payment of the Bonds and the use of the property financed with the proceeds of the Bonds. The City has covenanted in the Bond Ordinance to comply with these requirements. Pursuant to the Code, the Bonds are designated as "qualified tax-exempt obligations" as defined in Section 265(b)(3)(B) of the Code. Interest on the Bonds is not exempt from Illinois income taxes. Very truly yours, C-3 APPENDIX D CITY OF DES PLAINES COOK COUNTY, ILLINOIS EXCERPTS OF FISCAL YEAR 2013 AUDITED FINANCIAL STATEMENTS RELATING TO THE CITY'S PENSION PLANS z Ow oW - .M- w�N - <c az <E w z w Q LL N 0OO I - w z NOTE 9 — EMPLOYEES' RETIREMENT SYSTEM (Continued) NOTE 9 — EMPLOYEES' RETIREMENT SYSTEM The following is a summary of the Police Pension Plan as provided for in Illinois Compiled Statutes. m3mms2mm O_ N Tw N O L cO - * T y c r C Q. L ad m m„, -2t Y F d ry C N ry N 2 O 3. .2uw— EcUE y N m O C m m N p O O a N N r C N t O« D ca_ y m m .0 C N C> 51(1.=.058.2 E m T C« N O "IMAM tE m m LL = m m w U c _0 m_ m n v202 2� a a c -o Qac0m m maces a m E o4 C O L os N a c m m N dam Tm" O 9 mE°v E 0,8 76- �, n.mc E •o 3 333 cps 1-oaa°3 O m m. OIL C m g PaE my am ��aYN�ac a Nc : Q ° y g9 -:,c) y ca Eo 52.2 ac m o m o m fam8=RgE D-1 At December 31, 2013, the Police Pension Plan membership consisted of: F � Z Ow _LIJ 11-m WoN z Q M z a azo w z E 00. v u_00 01w Ul6 z F MZ Z M W J Q 0 wMN 201,7 3�v azo w?0 00. 8 0.00 F W 55 z NOTE 9 — EMPLOYEES' RETIREMENT SYSTEM (Continued) At December 31, 2013, the Firefighters' Pension Plan membership consisted of: f9 0 0 0 9 0 N 0 « m O N M E C 0) m T da A- The following is a summary of the Firefighters' Pension Plan as provided for in Illinois Compiled Statutes. a 0 December 31, 2011 0 0 O C F 0) O M m Cyy Q 1 Nm 0m)'� U 4 40;00_(o m 2.0-2 T 0 0 c 0 c e o 0-00.0 0(0000 ��voa Eai2 00 W N E 0 m rtr.--F45 ▪ m.u.) r_ y T 0 N O O 2-v) 0 O w n d 0(200 N 0 O 9 O N m E T a N c _c E E N i 0 0 N U a 3 o.0 E2 76:74;t4 L m '00 N N 0 T N m.5 C Q C U d rn. lEo0) 20050 a m Y+rn•-zmN V,"411!! ▪ � 9 2 5 5N m•- m m 0 m 2-E) c o . °1 N m O V ,O d > N O N 9 2 2 0a1 > C m 22 0 0.0 �..LO•> y.0 d O2 O O U °� cc ami m 0D -0,z0 11401;,n 5 mL m a 0) m N3 m 0) m 0• O T 8 :-'S aZi«dad '0 =▪ 02,20a 0.2.0.0 N 9( 0)0.0 55.9 F 0 U m N fm/) m D-2 00 c 0,000 0.000 O ,! 5vi rim 0a 0 E m 0) 0 0 0 0 0 0 N 800 I, j V Q M ao E 0 ZZ Z� Jal Q 0 w (nN 2QM O Z a W 0 ❑ LLz LLO❑ 0 I- U� Z 0 0 0 ress: The City's actuarial value of plan assets for the current year and a N NOTE 9 — EMPLOYEES' RETIREMENT SYSTEM (Continued) Net Pension (Asset): The following is the net pension (asset) calc o 'a da o � as (0 'U E 2 0 'O 0) L0 8).g' e U O o as -2)1 (( •= StL cV M d 0' Eo y N d M 0 EN U 0 69 $ 38,187,978 Actuarial Valuation of Assets (a) O CO m 0) (OA O (D M to co N$ co M co 2 N CD 1,-N M co N CO CO CO V N N (» Actuarial Accrued Liability (AAL) Entry Age (b) $ 11,694,243 Unfunded AAL (UAAL) (b -a) 0 a> O M VO Lrt Funded Ratio (a/b) $ (674,255) $ (836,432) Net Pension Obli Covered Payroll (c) 0 Nn Q UAAL as a percentage of Covered Payroll ((b-a)fc) N 0 CO N tO O D-3 $ (674,255) $ (836,432) r 7 of } c0 (0 M(0 CO V) e o o Mo (00 c714.. CD 04..- ,r., 55 <{a0 O) NO(0 'O(() W(OM GS (CO.NM (MO(OO.N. �� CO O MMM MMM C fA fA f9 O N N (nom MM0 (co VM MMM O M V N M N V) ((00 VV)) n MMM 0 0 0 O) O O (0 O CO r0 - E 0) Lo V) V N o M r V y0 (v(O (9 0) 49 0) 01 (0m M M M N N N o oo rM cci <6 M N rn N(V e e e hr V) a)coOMD � Ns{{ N IO CO V) COCO CO. Or CO CO CO A A 65 M NiS 0- NNN Annual pension cost (APC) CO N NNN Contributions made M N NNN Percentage of APC contributed M N 0- C7:, O o N N N Net pension obligation (asset) N Z ow zm W J a W f0 z a M (<9 W 0 0 LL N }0. 0 O V- W U8 Z NOTE 9 — EMPLOYEES' RETIREMENT SYSTEM (Continued) NOTE 9 — EMPLOYEES' RETIREMENT SYSTEM (Con es in Plan Net Position: c 0 Fiduciary Net Position: F 0 0 a v01 C r N O Tr."'" W n fA 00 (0 r M O 4 O) N 0 2 V) 0.7) 0 7 4- ' ) csi O N 4 oa 0 c g� N N «0 M° '0 0 �a 8 O N: $ 3,029,266 $ 4,032,598 $ m M N CO C 0 C NW N g� MCO NN O) M (V 40 r co V' O (0 4) MW O I M,- (yN (V (M y V N M N h (O (O (0 (010 N (0 (MO 0) N O0 M V MN 000 c6'° Nr M r0 W 1� 00 (0 (O M .. oNv(�� d riu (^O N O N Or N N 4- .4) N O triO co csi a, 2 0) 117.402.816 M N W O 000 Change in plan net position n W N 00 rn m 0 (0 Plan net position, beginning of year 47- 0.4 M $ 67,305,198 $ 62,086,183 $ 129,391,381 Plan net position, end of year $ 67,305,198 $ 62,086,183 $ 129,391,381 0 a Z NOTE 10 — RISK MANAGEMENT dvmU'28 > E m m m mo' mm EmoaiE.-y 'mO p N 5 C C O O 40 0 O V e�pp'C C C L G) E mo E E o L mU m o k y u k t N D « m -0.9_040° « m D O o Ma d_ E i m o o m 0 2 m c o `O o = o m 3 0 o g 4 N 2 2 C a =) m D C OY E2o0 D ._ N O m (0 m 2c OE°2 x O D NE 0 8 L y LL L A N U 0 N C H L w C y ;;;:::: m 2 °« o m�amcv SOD m y20 N N O N C >p d'DF- =) 2 8 d J Q 0 W -J N 506 o <E m O LL 8 }w0)- oo F- W UD Z NOTE 13— OTHER POSTEMPLOYMENT BENEFITS (Continued) NOTE 13 — OTHER POSTEMPLOYMENT BENEFITS M N M W8c000RA 0) Om 88,- Z U r r (V 69 0 0 0 Oo)a c ,M -m. S O N a co U 0 5 0 m m 0 m76191 Vg., f9 >)m04 N C7.N C 0¢ m N •0 D N 0) 0) 0 '0 y 0) a s N 0 g 0« 0 0 N 0 0j N c a N a a o N 0> a` N p m E .p c$ dm s w aoiEffBwOU m V 5 8 °oo 8.8 ' N E 0) ° .8. �E'me8585om y '0 C o o w L a•- a•.. .0000'500 •O 5 L N C O O (4 8 O 0 .+ N a m 0 m O a'O U �-9,A N 2:13-82›:,--0 C0N'00 N o>` 2 a N .00)E000 .0 N O- c N 0 0 g 0 0 w ' C m m i:. 'mp p) o 0l U L m 0I O o L E 6 N 0) C C U 0 T 6 0) -, y m 8 0 0 y N ry 4) o m 0 a 0 y N 2 8 o 8 C N C 10 m'C N OO5 N« = m 2 N « °-YO O .p a 0 0 N -0)p L e w >L O .G22" -8'§g9'.9 -4,41E Z m m N 5 >, N (p U 5 )01.00 0> g 0) 0) . C« O 0) O O 0 N O_ 2 `a .20(06'606.5o co« )60 -9 -240a2 -g° 69. 0 o Ta m 0 C 0 N n (0 C s 0) O �• T� U y L Oa W N t N a y L> g y'- N> N N§ ri g N N C m e LSU l0 mt N N n 0Q4 0 IZ 0 r« Y0 3 c •C 3 L C N_ co N C C o m rn 0)04.0m- --- )0 0 5 ° U 3 g g 2opO1rn'' oom8s'22c25 m W« 0 0 c U m C N N m �' ) 0) 8— y y N 0 N N'- 0L OI0.0 2 0 a 8 o a 0 c (8 p 0 s =L s2 a 8'5 5 6 8° 2 8 2 8 O Y 0 °) a0 oma 5 a 3 `m )c m .c p0 m 0 te $ 10.380.866 Unfunded Actuarial Accrued Liability (URAL) 0 Funded ratio (actuarial value of plan assets/AAL) $ 32,389,697 Covered payroll (active plan members) UAAL as a percentage of covered payroll a 0.000( n C D 0-•O o 0 0) (0 0) C U (0 « 2 Y g 5 o E 8 5 6 c'-o�Eo5(0 8 N N 0 m C y E' d N 0 m E w m ? N 9 N<5 O >. E y (0 N 0 E -O°. ayi E « L 11 -`in m Q E 3 0 0 C w o Cm m a 0) O)wc3 N >2 ) C C 0)9 2'9E « 1 m p 0 w <0 ° '0 m o «y{ N � m d 'T. r N L a y N 0 m ?!;1-1:9a 0« 5 a o E m O O t a C N 0° C `I - 8 o 0 m 0- 3 N 0) U m d c ZtOi p 8 TD -282s2) 0cy m 0 E 5 8 0 E m a"O N N 043.9 c 2 i.or omN c m a 6 y c y o o E° C 0 C a 0 y N o m m m 2 8 0 C O4ims..°, 5 0 o c c~ 8 1 m '8 a O v p- C m m 1 •y C> o m _ a > C 8« d « N p m aaC (0L C C 5 •m E 5 o c.T.•'3 m= 0 N N m C 0 p a5528gwr4° «aY a a C cm3m �aa m @ 0 0 dL Cd a $2 C C r 0 vcrna ac cv- 8 .2° N O g N N r m m 5o E 00)0 ` m o N N @ T o c 0Wa U T«.0r W X Q 0 m m= OF-000� O O « o y ¢ € c kU- m m m o Q o .O O O N u0 y C O O .- C . 'C O C m °mom o T E 8 0 0. a m 200,0= O cEa L"�>,LN nod�m0 .0 r.Y V 0 0 O N E> (NO oC O C `1 a >.0 22, y 0I U C 5 0 4MIMS 18#24 m«fla0p,?,t_ 5.Dwom c`°O O .0 L sa°«aou-.m o o mE'c 'E'423; Z o o y '6 8.55'558(0 32'2°5) O L 0) 2 E 0 m m m L C C m O n N U ..a apa2a F-mm-UU D-5 '10882.€ 0Eac3 2t -mg; ' c°.>",°,), 8 0'>Em(0 O 0 L N r N 4343.9 NO t a m c pv N y N c a U > f.132.4 Oal>> p N N 8 O 0 C p ° N d N " m .5 N OR O w F22'c a a 01 N O N N =.„22 ah8 -mL P2'1"2 -P) am2 1a-430 °0« mLs p p 0 ~ ,�_• N K E " c m o mcap>a y t m .. C Fr 8. r 000 C N 'a 0 � O C O 0 y L 0. O O m N � U _p O v 8 N a o 0SOE'« mmo O NN m 0) ,m ALi o$ 2 w w a d _ m 0= C C C p 0 O 00EN(h '412"E :"E" 0 C m 0 ▪ a N ( Oa j m 00 ° C y a O m w C m 0 Tc- 0 N y a 5 E m m 8 c 8. cF ELL 8 N (4« 0 0 W D N C N 5.8 w N oEEyyi2C .6 0 « m N - N `) U C.. g L 0 0 0 o m 5->a.mC a..,CO 0 yCy m .20 ° ` N« C m J > a0 U ‚6026 �v>o��d)d ▪ 0L—a0) 0°. m 0E M p CC N a C D N 0- m m a O U o v 0 N M5 aS 0N> ((0 `mo -0508-5 °mtC)p)oa 8. U ° o m ° OQj m a -0.>.10 moa Net OPEB obligation, beginning of year* 00 Net OPEB obligation, end of year 'The beginning balance was restated, see note 12. Z M OZO Pp ` Z- Z E5 m">- W < K Z Z M _Jw0 agora w g aw° crau.v 0n00 m U O 5L9 W = w N � o 0 0 0 0 0 0 O m l 0 0 0 O M M V m (MO h d 0 (0 0) W mMdMadON) mmms-calr- 69 (O O O (0 N MM W O 0) (�I�M cOM w O W ro d N W (O0 N M N a) � r NN N.-.- 0 0 0 0 0 0 W oca M O O O O N )Oa (O 0 0)0 00 r0 0d_MN10M (0 (00)01 NN 60 O M W m O O d N M 1 N M (o(0rn(o d M f+0)J Ni (V (V (V 0'000 N N M O o O T O E - (D W (O (0 d O D onn to i+})(nv (ONMO-O Mn)0)M Nr (O (O W W 1.-- N MMEOM 0) 0 0 r o MMMN(V (V 00000.0 weqMv10000 0)0) O0• M M 0) 0) O) M M O 0)0)00) E -46,-66N r r r 0)0)0) V 0 M O N O N N O N N N (O O (n 0 a) m (V M N in-Z1V6 69 (» (H 69 M N ' - O O O MN, -0(5,00 MN E-OOO MN., -.00,W 000000 000000 = 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N N N N N 0 N N N N N N a2N N NM NM NMaN M MM M M M M M M M MM G MM M .rMM M ?�??N? , ?,.a?,.- Naaa -.)- -ca.,--,..,,-,-.-r 0 V = a w 8 , 2 (g)mrovVo fn � r � NO)oJNl� o e ��yy N mMd V M Id+mnb (0 0 (00 N 100 0 0 0 (0 O N (0 (-(--0(000: 000)0:0)0) f (o m o Nry §. 4 orn p N roM (m t0 M1 0)N 0000- hNN�QI� NN�mNO 0)(M (0 a0� M1mM1mnM1 W m W M1roM1 NO •' M N M M to F9 d) 0) o (0 NWNdOD p 2 00 i m) W 2 2;. O O r 6: f=5 4d8Ud8 3838M10 666 (avNEAss yo N yyd Q i l 0 N (A y0)y Edi OD Fa!' m iMry mOi fN,) (G N h (010 t0 i0 Nr� i� �N M r r ^06)N((�� (RC1 1() N y O d M V O O M M N 0) MN 1- N� mOJF N N N N N N y N VN N A N ��aa�a aaaaaa� OQr (0 NA M ma0Rk 100 O N N h V 100 mm M N Q 1N omo �- N C(m()0 O ' t N N 0$V aL aaa�a - aa D-6 EXHIBIT D Crowe Horwath} Crowe Horwath LLP Independent Member Crowe Horwath International INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE To the Honorable Mayor And Members of the City Council City of Des Plaines, Illinois Des Plaines, Illinois 60016 We have examined the City of Des Plaines, Illinois', (City's) compliance with the requirements of subsection (q) of Section 11-74.4-3 of the Illinois Tax Increment Redevelopment Allocation Act during the year ended December 31, 2014. Management is responsible for the City's compliance with those requirements. Our responsibility is to express an opinion on the City's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and accordingly, included examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination of the City's compliance with specified requirements. In our opinion, the City complied in all material respects, with the aforementioned requirements for the year ended December 31, 2014. eAnue LLP Crowe Horwath LLP Oak Brook, Illinois June 8, 2015 217. CITY OF DES PLAINES, ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2014 ASSETS Cash and Investments Receivables (net) Property Tax Receivable Other Taxes Accounts Receivable Accrued Interest Other Due from Other Governments Advances to Other Funds TOTAL ASSETS LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts Payable Accrued Payroll Accrued Liabilities Deposits Payable Advances from Other Funds Unearned Revenue Total Liabilities Deferred Inflows of Resources Deferred Property Tax Revenue Unavailable Other Revenue Total Deferred Inflows of Resources Fund Balances Nonspendable Long-term Interfund Advances Restricted Economic Development Debt Retirement/Infrastructure Streets & Highways Public Safety Debt Service Assigned Infrastructure Capital Acquisitions Streets & Highways Pension Funding Unassigned Total Fund Balances Major Governmental Funds General TIF#6 (Mannheim/ Higgins) $ 23,982,499 $ Nonmajor Total Capital Governmental Governmental Gaming Tax Projects Funds Funds $ 34,732,920 $ 3,259,857 $ 14,094,379 $ 76,069,655 22,789,813 18,461 33,874 5,213,021 28,055,169 1,179,672 - 141,448 - 1,321,120 1,174,419 - 620,646 - 1,795,065 265,331 4,541 1,531 271,403 204,076 2,611,508 5,138 2,820,722 6,267,850 1,147,255 1,382,804 8,797,909 13,885,051 - - 13,885,051 $ 69,748,711 $ 18,461 $ 37,348,969 $ 5,203,080 $ 20,696,873 $ 133,016,094 $ 1,412,518 $ 1,580,295 110,671 229,379 3,332,863 22,743,904 1,589,539 24,333,443 13,885,051 5,950,000 2,300,000 200,000 700,000 19, 047, 354 1,956 $ 15,917,018 $ 1,602,341 13,318 8,081,489 8,083,445 15,917,018 15,986 15,986 21,431,951 $ 1,067,630 $ 20,001,463 2,718 1,596,331 110,671 4,075 138,999 143,074 3,158,547 11,240, 036 229,379 1,619,734 4,367,894 33,320,954 32,995 5,080,477 27,873,362 1,601 501 3,191,040 32,995 6,681,978 31,064,402 13,885,051 4,247,317 4,247,317 21,431,951 554,995 554,995 2,024,830 2,024,830 457,477 457,477 3,550,351 - 9,500,351 5,593,226 7,893,226 200,000 700,000 (8,080,970) (3,230,844) 7,735,540 42,082,405 (8,080,970) 21,431,951 3,550,351 9,647,001 68,630,738 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 69,748,711 $ 18,461 $ 37,348,969 $ 5,203,080 $ 20,696,873 $ 133,016,094 See accompanying notes to financial statements. 21. CITY OF DES PLAINES, ILLINOIS RECONCILIATION OF GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION December 31, 2014 Total Fund Balances - Governmental Funds $ 68,630,738 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: Capital Assets Accumulated Depreciation $ 305,059,302 (107,812,854) Net Capital Assets 197,246,448 Some receivables that are not currently available are reported as deferred inflows of resources in the fund financial statements but are recognized as revenue when earned in the government -wide statements. Gains/Losses related to the refunding of long-term debt are deferred and amortized over the life of the debt issue in the statement of net position. Generally, interest on long-term debt is not accrued in governmental funds, but rather is recognized when due. The net pension assets of the police and firefighters pension funds are included in the governmental activities in the statement of net position. Some liabilities reported in the statement of net position do not require the use of current financial resources and therefore are not reported as liabilities in governmental funds. These liabilities consist of: 3,191, 040 541,551 (83,013) 2,017,516 Compensated Absences Payable (2,364,367) General Obligation Bonds Payable (7,020,000) TIF General Obligation Bonds Payable (33,658,625) TIF Revenue Bonds Payable (423,590) Unamortized Bond Premiums & Discounts (386,636) Installment Notes Payable (187,500) Other Post Employment Benefits (OPEB) (2,084,329) Net Pension Obligation - IMRF (250,205) Total Long-term Liabilities (46,375,252) Internal service funds are reported in the Statement of Net Position as Governmental Activities. 5,003,107 Net Position of Governmental Activities $ 230,172,135 See accompanying notes to financial statements. 22. CITY OF DES PLAINES, ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2014 Major Governmental Funds TIF #6 Nonmajor Total (Mannheim/ Capital Governmental Governmental General Higgins) Gaming Tax Projects Funds Funds ASSETS Cash and Investments $ 23,982,499 $ $ 34,732,920 $ 3,259,857 $ 14,094,379 $ 76,069,655 Receivables (net) Property Tax Receivable 22,789,813 18,461 33,874 5,213,021 28,055,169 Other Taxes 1,179,672 - 141,448 - 1,321,120 Accounts Receivable 1,174,419 620,646 - 1,795,065 Accrued Interest 265,331 4,541 1,531 271,403 Other 204,076 2,611,508 5,138 2,820,722 Due from Other Governments 6,267,850 1,147,255 1,382,804 8,797,909 Advances to Other Funds 13,885,051 - - 13,885,051 TOTAL ASSETS $ 69,748,711 $ 18,461 $ 37,348,969 $ 5,203,080 $ 20,696,873 $ 133,016,094 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts Payable $ 1,412,518 $ 1,956 $ 15,917,018 $ 1,602,341 $ 1,067,630 $ 20,001,463 Accrued Payroll 1,580,295 - 13,318 2,718 1,596,331 Accrued Liabilities 110,671 - - 110,671 Deposits Payable - - 4,075 138,999 143,074 Advances from Other Funds - 8,081,489 3,158,547 11,240,036 Unearned Revenue 229,379 - - 229,379 Total Liabilities 3,332,863 8,083,445 15,917,018 1,619,734 4,367,894 33,320,954 Deferred Inflows of Resources Deferred Property Tax Revenue 22,743,904 15,986 32,995 5,080,477 27,873,362 Unavailable Other Revenue 1,589,539 - - - 1,601,501 3,191,040 Total Deferred Inflows of Resources 24,333,443 15,986 32,995 6,681,978 31,064,402 Fund Balances Nonspendable Long-term Interfund Advances Restricted Economic Development Debt Retirement/Infrastructure Streets & Highways Public Safety Debt Service Assigned Infrastructure Capital Acquisitions Streets & Highways Pension Funding Unassigned Total Fund Balances 13, 885, 051 13,885,051 i I - 4,247,317 4,247,317 I 21,431,951 21,431,951 - 554,995 554,995 2,024,830 2,024,830 457,477 457,477 5,950,000 3,550,351 9,500,351 2,300,000 - 5,593,226 7,893,226 200,000 - 200,000 700,000 - 700,000 19,047,354 (8,080,970) - (3,230,844) 7,735,540 42,082,405 (8,080,970) 21,431,951 3,550,351 9,647,001 68,630,738 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 69,748,711 $ 18,461 $ 37,348,969 $ 5,203,080 $ 20,696,873 $ 133,016,094 See accompanying notes to financial statements. 21. CITY OF DES PLAINES, ILLINOIS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended December 31, 2014 Revenues Property Taxes Other Taxes Licenses and Permits Intergovernmental Public Charges for Services Fines, Forfeitures and Penalties Investment Income Miscellaneous Total Revenues Expenditures Current General Government Public Safety Public Works Streets and Highways Economic Development Debt Service Principal Interest and Fiscal Charges Capital Outlay Total Expenditures Excess (Deficiency) of Revenues over (under) Expenditures Other Financing Sources (Uses) Transfer In Transfer Out Issuance of Debt Payment to Refunding Bond Escrow Premium on Bond Issuance Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances at Beginning of Year Fund Balances at End of Year Major Governmental Funds General TIF #6 (Mannheim/ Higgins) Gaming Tax $ 22,900,148 $ 9,550 $ 12,248,695 - 24,792,544 3,331,833 19, 559,114 5,065,526 1,306,106 - 11,112 149 432,138 - 64,854,672 7,531,642 38,649,791 5,232,228 5,497,717 642,461 57, 553, 839 7,300,833 342,257 (9,201,298) Nonmajor Total Capital Governmental Governmental Projects Funds Funds $ 32,151 $ 5,551,655 $ 28,493,504 6,075,436 108,505 43,225,180 3,331,833 25,701 5,124,794 24,709,609 2,221,419 7,286,945 32,963 1,339,069 26,795 2,182 33,558 73,796 85,215 3,757 521,110 9,699 24, 819, 339 8,442,104 10, 855,232 108, 981, 046 48,418 955,000 234,697 15,917,018 973,518 283,036 23,731,696 189,337 38,839,128 6,205,746 1,475,748 6,973,465 1,547,972 2,238,851 5,395,000 1,801,298 8,151,298 441,522 648,920 1,325,139 8,469,063 6,749,514 15,218,577 1,238,115 15, 917, 018 15, 279,103 12, 695, 825 102, 683, 900 (1,228,416) (49,527) 2,020,000 (6,440,489) 1,707 (8,859,041) (4,468,309) 8,902,321 (6,836,999) (1,840,593) 6,297,146 - 6,895,000 3,833,250 11,070,507 (1,745,000) (74,152) (251,972) (11,321,949) 2,880,000 2,720,000 7,620,000 (2,924,139) (6,358,971) (15,723,599) 81,567 77,035 160,309 (1,745,000) 6,858,276 19,342 (8,194,732) 21,277 (1,821,251) (1,897,586) (1,558,208) (5,696,725) 7,157,321 43,640,613 (2,384,245) 14,274,630 3,529,074 11,468,252 70,528,324 $ 42,082,405 $ (8,080,970) $ 21,431,951 $ 3,550,351 $ 9,647,001 $ 68,630,738 See accompanying notes to financial statements. 23. NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds are governmental funds used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for particular purposes. • Motor Fuel Tax Fund — to account for the City's share of restricted state gasoline taxes. All projects require the advance approval of the Illinois Department of Transportation. • Community Development Block Grant Fund - to account for the disbursement of the restricted Federal Community Block Grant. Financing is provided by the Federal Government. • Asset Seizure Fund — to account for the restricted monies received from the federal, state, and county related to the seizure of assets by the Des Plaines Police Department. • Foreign Fire Insurance Tax Fund — to account for restricted monies received from the foreign fire insurance tax, and disbursements by the Foreign Fire Insurance Tax Board. • TIF Tax Allocation #1 Fund — to account for restricted revenues and expenditures related to the tax increment finance district located downtown. • TIF Tax Allocation #3 Fund — to account for restricted revenues and expenditures related to the tax increment finance district located near Wille Road. • TIF Tax Allocation #4 Fund — to account for restricted revenues and expenditures related to the tax increment finance district located near Five Corners. • TIF Tax Allocation #5 Fund — to account for restricted revenues and expenditures related to the tax increment finance district located near Lee and Perry Streets in downtown Des Plaines. • TIF Tax Allocation # 7 Fund — to account for restricted revenues and expenditures related to the tax increment finance district located near Higgins Road and Pratt Avenue. There was no activity or budget for this fund in 2014. • Grant Funded Projects Fund — to account for restricted revenues and expenditures related to the Public Safety, Capital and other miscellaneous grants. Debt Service Funds are governmental funds used to account for the accumulation of resources and the payment of general long-term debt principal, interest, and related costs. • Debt Service Fund — to accumulate monies for payment of principal and interest on long-term general obligation debt of governmental funds. Capital Project Funds are used to account for the acquisition and construction of major capital facilities other that those financed by proprietary funds and trust funds. • Equipment Replacement Fund — to account for the acquisition of major capital equipment (rolling stock). • IT Replacement Fund — to account for the replacement of the City's computer and copier equipment. CITY OF DES PLAINES, ILLINOIS REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL TIF #6 (MANNHEIM/HIGGINS) FUND Year Ended December 31, 2014 With Comparative Actual Amounts for the Year Ended December 31, 2013 Revenues Property Taxes Investment Income Miscellaneous Total Revenues Expenditures Economic Development Contractual Services Commodities Capital Outlay Total Economic Development Debt Service Principal Interest and Fiscal Charges Total Debt Service Total Expenditures Excess (Deficiency) of Revenues over (under) Expenditures Other Financing Sources (Uses) Transfer Out Issuance of Debt Payment to Refunding Bond Escrow Premium on Bond Issuance Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances at Beginning of Year Fund Balances at End of Year 2014 Original and Final Budget Actual $ 50,139 $ 9,550 - 149 50,139 9,699 153,270 52 2,000,000 2,153,322 895,000 368,292 1,263,292 3,416,614 48,418 48,418 955,000 234,697 1,189,697 1,238,115 (3,366,475) (1,228,416) (49,527) (49,527) 2,020,000 (6,440,489) 1,707 (49,527) (4,468,309) $ (3,416,002) (5,696,725) (2,384,245) $ (8,080,970) Variance from Final Budget Positive (Negative) $ (40,589) 149 (40,440) 104,852 52 2,000,000 2,104, 904 (60, 000) 133,595 73,595 2,178,499 2013 Actual $ 7,104 148 3,147 10,399 27,554 138 27,692 725,000 436,782 1,161,782 1,189,474 2,138,059 (1,179,075) 2,020,000 (6,440,489) 1,707 (62, 515) 4,390,000 110,395 (4,418,782) 4,437,880 $ (2,280,723) 3,258,805 (5,643,050) $ (2,384,245) 83. CITY OF DES PLAINES, ILLINOIS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2014 Special Revenue Funds Community Motor Fuel Development Asset Foreign Fire TIF #1 Tax Block Grant Seizure Insurance Tax (Downtown) ASSETS Cash and Investments $ 809,164 $ 111,194 $ 1,538,776 $ 608,507 $ 4,211,780 Receivables (Net) Property Taxes 4,439,915 Accrued Interest 1,531 Other 5,138 Due from Other Governments 146,974 20,026 5,722 TOTAL ASSETS $ 956,138 $ 131,220 $ 1,551,167 $ 608,507 $ 8,651,695 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts Payable $ 401,143 $ 20,444 $ 14,582 $ Accrued Liabilities - 2,718 Deposits Payable 120,262 Advances from Other Funds - Total Liabilities 401,143 23,162 134,844 $ 280,933 18,737 299,670 Deferred Inflows of Resources Deferred Property Tax Revenue 4,307,721 Unavailable Other Revenue - 275 - Total Deferred Inflows of Resources - 275 4,307,721 Fund Balances Restricted Economic Development 107,783 4,044,304 Streets & Highways 554,995 Public Safety - 1,416,323 608,507 Debt Service - Assigned Capital Acquisitions Unassigned Total Fund Balances 554,995 107,783 1,416,323 608,507 4,044,304 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 956,138 $ 131,220 $ 1,551,167 $ 608,507 $ 8,651,695 98. Special Revenue Funds Debt Service Fund Capital Projects Funds Total Nonmajor TIF #3 TIF #4 TIF #5 Grant Funded Debt Equipment I.T. Governmental (Wille Road) (Five Corners) (Perry/Lee) Projects Service Replacement Replacement Funds $ $ $ 95,354 $ 547,263 $ 457,127 $ 5,157,049 $ 558,165 $ 14,094,379 544,569 119,772 108,765 5,213,021 1,531 5,138 1,210,082 1,382,804 $ 544,569 $ $ 215,126 $ 1,757,345 $ 565,892 $ 5,157,049 $ 558,165 $ 20,696,873 $ 726 $ - $ 124 $ 227,690 $ $ 28,110 $ 93,878 $ 1,067,630 - - 2,718 - 138,999 3,158, 547 3,158,547 3,159,273 124 227,690 - 28,110 93,878 4,367,894 544,569 119,772 108,415 5,080,477 544,569 (3,159,273) 1,601,226 - 1,601,501 119,772 1,601,226 108,415 6,681,978 95,230 4,247,317 554,995 2,024,830 457,477 457,477 (3,159,273) 95,230 5,128,939 464,287 5,593,226 (71,571) - - (3,230,844) (71,571) 457,477 5,128,939 464,287 9,647,001 $ 544,569 $ $ 215,126 $ 1,757,345 $ 565,892 $ 5,157,049 $ 558,165 $ 20,696,873 99. CITY OF DES PLAINES, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2014 Special Revenue Funds Community Motor Fuel Development Asset Foreign Fire TIF #1 Tax Block Grant Seizure Insurance Tax (Downtown) Revenues Taxes $ - $ $ - $ 108,505 $ 4,779,373 Intergovernmental 1,955,759 153,317 42,901 Fines, Forfeitures and Penalties 32,963 - Investment Income 89 2,700 3,372 564 Miscellaneous 2,757 1,000 Total Revenues 1,955,848 153,317 81,321 112,877 4,779,937 Expenditures Current: General Government Public Safety Streets and Highways Economic Development Debt Service Principal Interest and Fiscal Charges Capital Outlay Total Expenditures 1,475,748 367,115 1,842,863 Excess (Deficiency) of Revenues over (under) Expenditures 112,985 Other Financing Sources (Uses) Transfers In Transfers Out Issuance of Debt Payment to Refunding Bond Escrow Premium on Bond Issuance Total Other Financing Sources (Uses) 107,172 82,165 145,566 1,386,485 1,667 84,770 147,233 191,942 1,289,798 216,704 909,643 82,165 3,802,630 6,084 (110,621) 30,712 977,307 (205,210) (3,048,390) (3,253,600) Net Change in Fund Balances 112,985 6,084 (110,621) 30,712 (2,276,293) Fund Balances at Beginning of Year 442,010 101,699 1,526,944 577,795 6,320,597 Fund Balances at End of Year $ 554,995 $ 107,783 $ 1,416,323 $ 608,507 $ 4,044,304 100. Special Revenue Funds Debt Service Fund Capital Projects Funds Total Nonmajor TIF #3 TIF #4 TIF #5 Grant Funded Debt Equipment I.T. Governmental (Wille Road) (Five Corners) (Perry/Lee) Projects Service Replacement Replacement Funds $ 551,258 $ $ 120,982 $ $ 100,042 $ $ $ 5,660,160 2,972,817 - 5,124,794 - 32,963 34 1 17 26,769 12 33,558 3,757 551,292 120,983 2,972,834 100,042 26,769 12 10,855,232 512 15,364 45 324,000 386,439 643,951 710,951 659,315 (159,659) (659,315) 215,196 (6,275) (40,487) 2,720,000 (3,310,581) 77,035 95,000 17,937 229,792 9,626 43,618 283,036 189,337 1,475,748 1,547,972 2,875,956 112,982 3,105,748 8,001 (132,914) 49,152 80,000 12,500 1,801,298 27,840 648,920 - 892,960 973,452 6,749,514 107,840 915,086 (7,798) (888,317) 1,017,070 12,695,825 (1,017,058) (1,840,593) 2,532,800 1,036,102 3,833,250 (251,972) 2,720,000 (6,358,971) 77,035 (519,821) 174,709 49,152 2,532,800 1,036,102 19,342 (679,480) (484,606) 8,001 (83,762) (7,798) 1,644,483 19,044 (1,821,251) (2,479,793) 484,606 87,229 12,191 465,275 3,484,456 445,243 11,468,252 $ (3,159,273) $ $ 95,230 $ (71,571) $ 457,477 $ 5,128,939 $ 464,287 $ 9,647,001 101. CITY OF DES PLAINES, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL TIF #1 (DOWNTOWN) FUND Year Ended December 31, 2014 With Comparative Actual Amounts for the Year Ended December 31, 2013 2014 Variance from Final Budget Original and Positive Final Budget Actual (Negative) 2013 Actual Revenues Property Taxes $ 4,733,399 $ 4,779,373 $ 45,974 $ 4,797,868 Investment Income 600 564 (36) 1,071 Miscellaneous - - - 2,144 Total Revenues 4,733,999 4,779,937 45,938 4,801,083 Expenditures Economic Development Salaries 6,000 2,530 3,470 6,469 Benefits 809 532 277 992 Contractual Services 1,201,202 700,472 500,730 535,673 Commodities 451,650 682,951 (231,301) 550,477 Capital Outlay 2,550,000 909,643 1,640,357 3,014,901 Total Economic Development 4,209,661 2,296,128 1,913,533 4,108,512 Debt Service Principal 1,459,797 1,289,798 169,999 1,930,865 Interest and Fiscal Charges 300,076 216,704 83,372 362,765 Total Debt Service 1,759,873 1,506,502 253,371 2,293,630 Total Expenditures 5,969,534 3,802,630 2,166,904 6,402,142 Excess (Deficiency) of Revenues over (under) Expenditures (1,235,535) 977,307 2,212,842 (1,601,059) Other Financing Sources (Uses) Transfer Out (205,210) (205,210) (394,232) Issuance of Debt 2,990,000 Payment to Refunding Bond Escrow (3,048,390) (3,048,390) Premium on Bond Issuance - - 90,118 Total Other Financing Sources (Uses) (205,210) (3,253,600) (3,048,390) 2,685,886 Net Change in Fund Balance $ (1,440,745) (2,276,293) $ (835,548) 1,084,827 Fund Balance at Beginning of Year 6,320,597 5,235,770 Fund Balance at End of Year $ 4,044,304 $ 6,320,597 104. CITY OF DES PLAINES, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL TIF #3 (WILLE ROAD) FUND Year Ended December 31, 2014 With Comparative Actual Amounts for the Year Ended December 31, 2013 Revenues Taxes Investment Income Miscellaneous Total Revenues 2014 Original and Final Budget Actual $ 630,943 10 630,953 Variance from Final Budget Positive (Negative) $ 551,258 $ 34 2013 Actual (79,685) $ 24 551,292 (79,661) Expend itures Economic Development Contractual Services 10,039 512 Total Economic Development 10,039 512 Debt Service Principal 314,000 324,000 Interest and Fiscal Charges 397,013 386,439 Total Debt Service 711,013 710,439 Total Expenditures 721,052 710,951 Excess (Deficiency) of Revenues over (under) Expenditures (90,099) (159,659) Other Financing Sources (Uses) Transfers Out (6,275) (6,275) Issuance of Debt 2,720,000 Payment to Refunding Bond Escrow (3,310,581) Premium on Bond Issuance 77,035 Total Other Financing Sources (Uses) (6,275) (519,821) Net Change in Fund Balance $ (96,374) (679,480) Fund Balance at Beginning of Year (2,479,793) Fund Balance at End of Year $ (3,159,273) 9,527 9,527 (10,000) 10,574 574 10,101 (69,560) 2,720,000 (3,310,581) 77,035 (513,546) $ (583,106) 489,100 30 405 489,535 6,683 6,683 165,000 409,744 574,744 581,427 (91,892) (6,260) 565,000 14,532 573,272 481,380 (2,961,173) $ (2,479,793) 105. CITY OF DES PLAINES, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL TIF #4 (FIVE CORNERS) FUND Year Ended December 31, 2014 With Comparative Actual Amounts for the Year Ended December 31, 2013 2014 Original and Final Budget Actual Revenues Taxes $ 24,797 Investment Income Total Revenues 24,797 Expenditures Economic Development Contractual Services 173,671 Commodities 5,000 Capital Outlay 200,000 Total Expenditures 378,671 Excess (Deficiency) of Revenues over (under) Expenditures (353,874) Other Financing Sources (Uses) Transfers In Transfers Out (40,487) Total Other Financing Sources (Uses) (40,487) Net Change in Fund Balance $ (394,361) Fund Balance at Beginning of Year Fund Balance at End of Year $ 13,624 1,740 643,951 Variance from Final Budget Positive (Negative) 2013 Actual $ (24,797) $ 1,901 - 1 (24,797) 1,902 160,047 3,260 (443,951) 659,315 (280,644) (659,315) (305,441) 215,196 215,196 (40,487) 174,709 215,196 (484,606) $ (90,245) 484,606 $ 18,135 45,482 63,617 (61,715) (45,380) (45,380) (107,095) 591,701 $ 484,606 106. CITY OF DES PLAINES, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL TIF #5 (PERRY/LEE) FUND Year Ended December 31, 2014 With Comparative Actual Amounts for the Year Ended December 31, 2013 2014 Variance from Final Budget Original and Positive Final Budget Actual (Negative) 2013 Actual Revenues Taxes $ 115,438 $ 120,982 $ 5,544 $ 94,586 Investment Income - 1 1 36 Total Revenues 115,438 120,983 5,545 94,622 Expenditures Economic Development Contractual Services 10 45 (35) 1,418 Total Economic Development 10 45 (35) 1,418 Debt Service Principal 95,000 95,000 90,000 Interest and Fiscal Charges 17,913 17,937 (24) 19,736 Total Debt Service 112,913 112,937 (24) 109,736 Total Expenditures 112,923 112,982 (59) 111,154 Net Change in Fund Balance $ 2,515 8,001 $ 5,486 (16,532) Fund Balance at Beginning of Year 87,229 103,761 Fund Balance at End of Year $ 95,230 $ 87,229 107.