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NEW ISSUE Investment Rating: Standard & Poor’s Corporation … AA
ADDENDUM DATED JULY 17, 2013
OFFICIAL STATEMENT DATED JULY 9, 2013
$1,489,922.55 CITY OF LOCKPORT
Will County, Illinois General Obligation Capital Appreciation Limited Bonds, Series 2013
Dated Date: August 1, 2013
AMOUNTS, MATURITIES, INTEREST RATES AND YIELDS OR PRICES
Compound Accreted Original Value at Due Principal Stated Reoffering CUSIP Maturity* Jan. 1 Amount Yield Price Number $ 70,000 ........... 2015 $ 69,017.20 1.000% 98.596% 540016 EX6 725,000 ........... 2016 703,489.25 1.250% 97.033% 540016 EY4 755,000 ........... 2017 717,416.10 1.500% 95.022% 540016 EZ1
The Official Statement of the City dated July 9, 2013 (the "Official Statement") with respect to the Bonds is incorporated
by reference herein and made a part hereof. The "Final Official Statement" of the City with respect to the Bonds as that term is defined in Rule 15c2-12 of the Securities and Exchange Commission shall be comprised of the following:
1. Official Statement dated July 9, 2013; and 2. This Addendum dated July 17, 2013.
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 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 Final Official Statement may be obtained from sources other than records of the City and, while believed to be reliable, is not guaranteed as to completeness. NEITHER THE DELIVERY OF THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE THEREUNDER SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE CITY SINCE THE DATE THEREOF.
The City has authorized preparation of the Final Official Statement containing pertinent information relative to the Bonds and the City. Copies of that Final Official Statement can be obtained from the Underwriter, as defined herein. Additional information may also be obtained from the City 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 • CHICAGO, ILLINOIS 60602 312-346-3700
2
ADDITIONAL INFORMATION
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.
THE CITY Organization and Services The City has approximately 101.6 full-time equivalent employees. The City has current labor contracts with MAP Number 75 and the International Operating Engineers Number 150, which expire on June 30, 2015. Community Life City residents are served by the White Oaks Library District (the “Library District”) formerly the Des Plaines Valley Public Library District, which has over 159,000 books. The Library District is a member of the Heritage Trail Library System which provides City residents access to materials the Library District may not have in its collection. Economy
During the past two years, there has been renewed interest in vacant commercial space along Ninth Street/Illinois Route 7. A former K-Mart center was renovated to accommodate a Berkot’s Grocery Store, Big Lots retail store, and miscellaneous retail. An addition was constructed on the north end of the building to allow for the development of a Merlin Auto Repair facility. A former retail center west of the K-mart center and on the north side of the street was remodeled and expanded to allow for a Corwin Pharmacy and new retail users. A new façade was constructed on the center, new signage installed, and landscaping placed throughout the site.
Available Non-Referendum Debt Service Extension Base Margin(1) Available Debt Service Series Series Series Series Total Debt Debt Service Year(2) Extension Base 2005A 2008 2009 2013 Service Extension Base Margin 2014 ......... $860,728 $202,995 $175,150 $405,000 $ 0 $ 783,145 $ 77,583 2015 ......... 860,728 0 351,450 435,000 70,000 856,450 4,278 2016 ......... 860,728 0 0 135,000 725,000 860,000 728 2017 ......... 860,728 0 0 0 755,000 755,000 105,728 Total ...... $202,995 $526,600 $975,000 $1,550,000 $3,254,595 Notes: (1) Source: the District. (2) All debt service for 2013 has previously matured.
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DEBT INFORMATION
After issuance of the Bonds, the City will have outstanding $12,765,607 principal amount of general obligation debt and
$515,000 principal amount of debt certificates. As of June 30, 2012, the City had IEPA loans outstanding in the principal amount of $12,092,285 and a note in the principal amount of $1,250,000 with the Illinois State Toll Highway Authority.
The City does not intend to issue additional debt within the next three months.
General Obligation Bonded Debt(1) (Principal Only)
Limited Tax Bonds Cumulative Calendar Series Series Series Series Outstanding The Total Principal Retired Year 2005A 2008 2009 2012(2) Debt Bonds Debt Amount Percent 2014 ..... $195,000 $145,000 $365,541 $1,300,000 $ 2,005,541 $ 0 $ 2,005,541 $ 2,005,541 15.71% 2015 ..... 0 330,000 377,706 1,325,000 2,032,706 0 2,032,706 4,038,247 31.63% 2016 ..... 0 0 112,437 1,350,000 1,462,437 69,017 1,531,455 5,569,702 43.63% 2017 ..... 0 0 0 1,400,000 1,400,000 703,489 2,103,489 7,673,191 60.11% 2018 ..... 0 0 0 1,425,000 1,425,000 717,416 2,142,416 9,815,607 76.89% 2019 ..... 0 0 0 1,450,000 1,450,000 0 1,450,000 11,265,607 88.25% 2020 ..... 0 0 0 1,500,000 1,500,000 0 1,500,000 12,765,607 100.00% Total .. $195,000 $475,000 $855,684 $9,750,000 $11,275,684 $1,489,923 $12,765,607 Notes: (1) Source: the City. (2) Alternate revenue bonds payable from revenues from State Income Taxes and Public Infrastructure Sales Tax.
Statement of Bonded Indebtedness(1)
Ratio To Per Capita Amount Equalized Estimated (2010 Census Applicable Assessed Actual 24,839) City EAV of Taxable Property, 2012 ............... $ 603,967,080 100.00% 33.33% $24,315.27 Estimated Actual Value, 2012 ..................... $1,811,901,240 300.00% 100.00% $72,945.82 Direct Bonded and Certificated Debt(2) ........... $ 13,280,607 2.20% 0.73% $ 534.67 Less: Self-Supporting Debt ...................... (9,750,000) (1.61%) (0.54%) (392.53) Net Direct Bonded and Certificated Debt ....... $ 3,530,607 0.58% 0.19% $ 142.14 Overlapping Bonded Debt(3): Schools .......................................... $ 13,517,620 2.24% 0.75% $ 544.21 Others ........................................... 11,696,384 1.94% 0.65% 470.89 Total Overlapping Bonded Debt .................. $ 25,214,004 4.17% 1.39% $ 1,015.10 Total Direct and Overlapping Debt .............. $ 28,744,611 4.76% 1.59% $ 1,157.24 Notes: (1) Source: the City. (2) Includes $515,000 Series 2005B Debt Certificates and the Bonds. (3) Overlapping bonded debt as of May 14, 2013.
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Legal Debt Margin(1)
2012 City Equalized Assessed Valuation .......................... $603,967,080 Statutory Debt Limitation (8.625%) .............................. $52,092,161 Non-Referendum Debt Limitation (0.5%) ........................... $3,019,835 General Obligation Bonded Debt: Series 2005A(2) ................................................. $ 195,000 $ 195,000 $ 195,000 Series 2008(2) .................................................. 475,000 475,000 475,000 Series 2009(2) .................................................. 855,684 855,684 855,684 Series 2012(ARS)(3) ............................................. 9,750,000 9,750,000 0 The Bonds(2) .................................................... 1,489,923 1,489,923 1,489,923 Total General Obligation Bonded Debt(4) ....................... $ 12,765,607 $12,765,607 $3,015,607 Less: Alternate Revenue Bonds(3) ............................... (9,750,000) Net General Obligation Bonds .................................... $ 3,015,607 Series 2005B Debt Certificates(4) ............................... $ 515,000 $ 515,000 $ 0 Total Applicable Debt ........................................... $ 3,530,607 $3,015,607 Legal Debt Margin ............................................... $48,561,554 $ 4,229 Note: (1) Source: the City. (2) Limited Tax Bonds. (3) The Series 2012 Bonds are issued as general obligation alternate bonds under Illinois statutes and do not count against the 8.625% of EAV debt limit for general obligation debt so long as the debt service levy for such bonds is abated annually and not extended. (4) Payable from Waterworks and Sewerage Revenues.
INVESTMENT RATING
The Bonds have been rated "AA" by Standard & Poor’s Investors Service. The City has supplied certain information and material concerning the Bonds and the City to the rating service shown on the cover page as part of its application for an investment rating on the Bonds. 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 investment ratings may be obtained from the rating agency Standard & Poor’s Investors Service, 55 Water Street, New York, New York 10041, telephone 212-238-2000.
UNDERWRITING
The Bonds were offered for sale by the City at a public, competitive sale on July 17, 2013. The best bid submitted at the sale was submitted by Hutchinson, Shockey, Erley & Co., Chicago, Illinois, (the "Underwriter"). The City awarded the contract for sale of the Bonds to the Underwriter at a price of $1,480,936.66. The Underwriter has represented to the City that the Bonds have been subsequently re-offered to the public initially at the yields set forth in this Addendum.
QUALIFIED TAX-EXEMPT OBLIGATIONS
The City has designated the Bonds as "qualified tax-exempt obligations" pursuant to the small issuer exception provided by Section 265 (b) (3) of the Code.
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AUTHORIZATION
The Official Statement dated July 9, 2013, and this Addendum dated July 17, 2013, for the $1,489,922.55
General Obligation Capital Appreciation Limited Bonds, Series 2013, have been prepared under the authority of the City and have been authorized for distribution by the City. /s/ STEVEN STREIT /s/ FRANK KOEHLER Mayor Interim City Administrator and City Planner CITY OF LOCKPORT CITY OF LOCKPORT Will County, Illinois Will County, Illinois
APPENDIX A
__[Issuance Date]__, 2013
$1,489,922.55 GENERAL OBLIGATION APPRECIATION LIMITED BONDS, SERIES 2013, OF THE CITY OF LOCKPORT
WILL COUNTY, ILLINOIS
Opinion of Bond Counsel We have acted as bond counsel for, and have examined, among other things, certified copies of the proceedings of the City Council of, the City of Lockport, Will County, Illinois (the “Issuer”), in connection with the issuance of $1,489,922.55 ($1,550,000 Compound Accreted Value at Maturity) General Obligation Capital Appreciation Limited Bonds, Series 2013 (the “Bonds”), dated __[Issuance Date]__, 2013 and compounding accreted value at the compounding rates and maturing annually on January 1 of each of the years, as follows:
Year
InitialPrincipal
Amount($)Compound
Accreted Value
At Maturity($)*
Compounding
Rate (%)
2015 69,017.20 70,000.00 1.00 2016 703,489.25 725,000.00 1.25 2017 717,416.10 755,000.00 1.50
*$1,550,000 is the aggregate Compound Accreted Value at Maturity
The Bonds are not subject to call for optional redemption prior to maturity.
The Bonds are issuable in fully registered form in the denomination of $5,000 (based upon Compound Accreted Value at Maturity) each or any authorized integral multiple thereof. The Bank of New York Mellon Trust Company, N.A., Chicago, Illinois, is the registrar (including its successors, the “Bond Registrar”), and the paying agent (including its successors, the “Paying Agent”) in connection with the Bonds. Payment of the maturing principal of the Bonds shall be made to the registered owners upon presentation and surrender to the Paying Agent.
For the prompt payment of the Bonds, the Issuer’s full faith, credit and resources is irrevocably pledged, and the Issuer has levied an ad valorem tax without limit as to rate or amount on all taxable property within the City of Lockport, Illinois to be extended and collected in each year to timely pay the applicable Compound Accreted Value at Maturity on the Bonds as set forth above.
A-1
The Bonds are issued by the Issuer for the purpose of financing all or a part of the costs of the
construction, reconstruction, resurfacing and/or repair of various streets within the Municipality; for replacement, expansion, removal or enhancement of certain infrastructure and facilities; for financing the acquisition (and certain site improvement work, as applicable) of real estate and along South State Street, north and south of 7th Street, and on the east and west sides of South State Street, roads and infrastructure facilities and improvements, and related facilities, improvements and costs, pursuant to and in all respects in compliance with the provisions of the Illinois Municipal Code (Section 5/1-1-1 et seq. of Chapter 65 of the Illinois Compiled Statutes) and the Local Government Debt Reform Act (Section 3.50/1 et. seq. of Chapter 30 of the Illinois Compiled Statutes), and all acts amendatory thereof and supplementary thereto, and in compliance with an authorizing ordinance therefor duly adopted by the Issuer’s City Council on July 17, 2013.
We are of the opinion that the foregoing show lawful authority for the issuance and sale of the Bonds under and pursuant to the Constitution and laws of the State of Illinois, and that the Bonds constitute legal, valid and binding general obligations of the Issuer, in connection with which the Issuer’s full faith, credit and resources, including the power to levy taxes without limitation as to rate or amount, are irrevocably pledged to pay the applicable Compound Accreted Value at Maturity. We are also of the opinion that as of the date of delivery thereof, and assuming the Issuer’s continued compliance with the terms and provisions of the Bond Ordinance, the Bonds are not arbitrage bonds, private activity bonds or hedge bonds, and the interest on the Bonds (i.e., compounded accreted value of the initial principal amount at the applicable compounding rate) is not a specific item of tax preference for individuals and corporations and is excluded from gross income under Section 103 of the Internal Revenue Code of 1986, as amended. However, certain collateral federal income tax consequences include that the interest on the Bonds may be subject to an alternative minimum tax on adjusted current earning and a foreign branch profits tax, on certain corporations, and may be a factor in a computation in connection with which certain social security and railroad pension income recipients may be subject to federal income taxes.
The interest on the Bonds is not exempt from income taxation by the State of Illinois. We are also of the opinion that the Bonds constitute “qualified tax-exempt obligations” under
Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. We express no opinion herein as to the accuracy, adequacy or completeness of the
offering document or any other information furnished in connection with the offer or sale of the Bonds. In rendering this opinion, we have relied upon certifications of the Issuer with respect to
certain material facts within the Issuer’s knowledge. Our opinion represents our legal judgment based upon our review of the law and the facts that we deem relevant to render such opinion and is not a guarantee of a result. This opinion is given as of the date hereof and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur.
Respectfully yours,
A-2
New Issue Investment Rating: Date of Sale: July 17, 2013 Standard & Poor’s … Between 10:00 and 10:15 A.M., C.D.T. (Review Requested) (Closed Speer Auction)
Official Statement
Subject to compliance by the City with certain covenants, in the opinion of Evans, Froehlich, Beth & Chamley, Bond Counsel, under present law, interest on the Bonds is excludable from gross income of the owners thereof for federal income tax purposes and is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations, but such interest is taken into account in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. Interest on the Bonds is not exempt from present State of Illinois income taxes. See “TAX EXEMPTION” herein for a more complete discussion. 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” herein.
$1,492,900* CITY OF LOCKPORT
Will County, Illinois General Obligation Capital Appreciation Limited Bonds, Series 2013
Dated Date of Delivery Book-Entry Non-Callable Bank Qualified Due Serially January 1, 2015-2017
The $1,492,900* General Obligation Capital Appreciation Limited Bonds, Series 2013 (the “Bonds”), are being issued by the City of Lockport, Will County, Illinois (the “City”). The Bonds will be in fully registered form in the denominations of $5,000 compounded accreted value at maturity and authorized integral multiples thereof in the name of Cede & Company as nominee of The Depository Trust Company (“DTC”), New York, New York, to which principal and interest payments representing the compounded accreted value at maturity on the Bonds will be paid. Individual purchases will be in book-entry only form. Interest on the Bonds will begin to compound from the date of delivery. Interest on the Bonds will be compounded semiannually on January 1 and July 1 of each year on the basis of a 360-day year. Interest will be payable, together with principal, only at maturity. Principal and interest representing the compounded accreted value at maturity are payable by the City’s paying agent (the “Paying Agent” and, as applicable, “Registrar”). The compounded accreted value at maturity of the Bonds shall be payable in lawful money of the United States of America at the designated payment office maintained for the purpose by the Paying Agent.
AMOUNTS*, MATURITIES, YIELDS AND PRICES
Compound Accreted Original Value at Due Principal Stated Reoffering CUSIP Maturity* Jan. 1 Amount Yield Price Number $ 70,000 ...... 2015 $_________ ______% ______% __________ 725,000 ...... 2016 _________ ______% ______% __________ 785,000 ...... 2017 _________ ______% ______% __________
The City reserves the right to increase or decrease any or all maturity values, in multiples of $5,000, in order to result in an original aggregate principal amount of approximately $1,495,000*.
NO OPTIONAL REDEMPTION
The Bonds are not subject to optional redemption prior to maturity.
PURPOSE, LEGALITY AND SECURITY
Bond proceeds will be used to finance roads and infrastructure facilities and improvements, and related facilities, improvements and costs and to pay the costs of issuance. See “THE PROJECT” herein.
In the opinion of Bond Counsel, Evans, Froehlich, Beth & Chamley, Champaign, Illinois, the Bonds are valid and legally binding upon the City and all taxable property of the City is subject to the levy of ad valorem taxes to pay the same without limitation as to rate (the “Levied Taxes”). The amount of the Levied Taxes that may be extended to pay the Bonds is, however, limited as provided by law as applicable to “limited bonds”. The enforceability of the Bonds against the City 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. See “THE DESCRIPTION OF THE BONDS” herein.
This Official Statement is dated July 9, 2013, and has been prepared in connection with the issuance of the Bonds. An electronic copy of this 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 Mr. Erik Brown, Finance Director, City of Lockport, 222 East Ninth Street, Lockport, Illinois 60441, 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 • CHICAGO, ILLINOIS 60602 Telephone: (312) 346-3700; Facsimile: (312) 346-8833
www.speerfinancial.com *Subject to change.
City of Lockport, Will County, Illinois General Obligation Capital Appreciation Limited Bonds, Series 2013
2
TABLE OF CONTENTS
BOND ISSUE SUMMARY ............................................................................................................................................................................................ 4 CITY OF LOCKPORT .................................................................................................................................................................................................. 5 DESCRIPTION OF THE BONDS ................................................................................................................................................................................ 5
Security for the Bonds ................................................................................................................................................................................................. 5 THE CITY ....................................................................................................................................................................................................................... 7
Overview ..................................................................................................................................................................................................................... 7 Organization and Services ........................................................................................................................................................................................... 7 Community Life .......................................................................................................................................................................................................... 7 Education ..................................................................................................................................................................................................................... 7 Transportation ............................................................................................................................................................................................................. 8 Economy ...................................................................................................................................................................................................................... 8
SOCIOECONOMIC INFORMATION ........................................................................................................................................................................ 9 Employment ................................................................................................................................................................................................................. 9 Building Permits ........................................................................................................................................................................................................ 11 Housing...................................................................................................................................................................................................................... 12 Income ....................................................................................................................................................................................................................... 12 Retail Activity ............................................................................................................................................................................................................ 14
THE PROJECT ............................................................................................................................................................................................................ 15 DEBT INFORMATION ............................................................................................................................................................................................... 15 PROPERTY ASSESSMENT AND TAX INFORMATION ...................................................................................................................................... 17 REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES ................................................................................... 19
Tax Levy and Collection Procedures ......................................................................................................................................................................... 19 Exemptions ................................................................................................................................................................................................................ 19 Property Tax Extension Limitation Law .................................................................................................................................................................... 21 Truth in Taxation Law ............................................................................................................................................................................................... 22
FINANCIAL INFORMATION ................................................................................................................................................................................... 22 Budgeting .................................................................................................................................................................................................................. 22 Investment Policy ...................................................................................................................................................................................................... 22 Financial Reports ....................................................................................................................................................................................................... 22 Summary Financial Information ................................................................................................................................................................................ 23
PENSION AND RETIREMENT OBLIGATIONS .................................................................................................................................................... 28 REGISTRATION, TRANSFER AND EXCHANGE ................................................................................................................................................ 28 TAX EXEMPTION ...................................................................................................................................................................................................... 29 QUALIFIED TAX-EXEMPT OBLIGATIONS ......................................................................................................................................................... 31 CONTINUING DISCLOSURE ................................................................................................................................................................................... 31 THE UNDERTAKING ................................................................................................................................................................................................ 32
Annual Financial Information Disclosure .................................................................................................................................................................. 32 Reportable Events Disclosure .................................................................................................................................................................................... 33 Consequences of Failure of the City to Provide Information ..................................................................................................................................... 33 Amendment; Waiver .................................................................................................................................................................................................. 34 Termination of Undertaking ...................................................................................................................................................................................... 34 Additional Information .............................................................................................................................................................................................. 34 Dissemination of Information; Dissemination Agent ................................................................................................................................................ 34
LITIGATION ............................................................................................................................................................................................................... 35 CERTAIN LEGAL MATTERS .................................................................................................................................................................................. 35 OFFICIAL STATEMENT AUTHORIZATION ....................................................................................................................................................... 35 INVESTMENT RATING ............................................................................................................................................................................................ 35 DEFEASANCE ............................................................................................................................................................................................................. 36 UNDERWRITING ....................................................................................................................................................................................................... 36 FINANCIAL ADVISOR .............................................................................................................................................................................................. 36 CERTIFICATION ....................................................................................................................................................................................................... 36 APPENDIX A - EXCERPTS OF FISCAL YEAR 2012 AUDITED FINANCIAL STATEMENTS APPENDIX B - DESCRIBING BOOK-ENTRY-ONLY ISSUANCE APPENDIX C - PROPOSED FORM OF OPINION OF BOND COUNSEL OFFICIAL BID FORM OFFICIAL NOTICE OF SALE
City of Lockport, Will County, Illinois General Obligation Capital Appreciation Limited Bonds, Series 2013
3
For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission, this document, as the
same may be supplemented or corrected by the City from time to time (collectively, the “Official Statement”), may be treated as an Official Statement with respect to the Bonds described herein that is deemed near final as of the date hereof (or the date of any such supplement or correction) by the City.
This Official Statement presented in preliminary form, and certain of the information contained herein is in a form
deemed final for purposes of Rule 15c2-12 under the Securities Exchange Act of 1934, as amended (except for the omission of certain information permitted to be omitted under Rule 15c2-12(b)(1)). The information herein is subject to revision, completion or amendment as a final Official Statement. The Bonds may not be sold, nor may an offer to buy be accepted, prior to the time this Official Statement is completed and delivered in final form. Under no circumstances shall this Official Statement constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
This Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates,
principal amounts and interest rates of the Bonds, together with any other information required by law or deemed appropriate by the City, shall constitute a “Final Official Statement” of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. Any such addendum shall, on and after the date thereof, be fully incorporated herein and made a part hereof by reference.
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 this 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 this 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 THIS OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THIS 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 this 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.
The information contained in this Official Statement has been furnished by the City, DTC and other sources which
are believed to be reliable, but such information is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation of, either the Underwriter or the City. The information and expressions of opinion herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the parties referred to above since the date hereof.
Any statements made in this Official Statement, including the Appendices, involving matters of opinion or estimates,
whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of such estimates will be realized. This Official Statement contains certain forward-looking statements and information that are based on the City’s beliefs as well as assumptions made by and information currently available to the City. Such statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected.
City of Lockport, Will County, Illinois General Obligation Capital Appreciation Limited Bonds, Series 2013
4
BOND ISSUE SUMMARY
This Bond Issue Summary is expressly qualified by the entire Official Statement, including the Official Notice of Sale and the Official Bid Form, which are provided for the convenience of potential investors and which should be reviewed in their entirety by potential investors. Issuer: City of Lockport, Will County, Illinois. Issue: $1,492,900* General Obligation Capital Appreciation Limited Bonds, Series 2013. Dated Date: Date of delivery, expected to be on or about August 1, 2013. Interest Due: Compounded semiannually on January 1 and July 1. Interest on the Bonds will begin to compound
from the date of delivery. Principal Due: Serially each January 1, commencing January 1, 2015 through January 1, 2017, as detailed on the
front page of this Official Statement. No Optional Redemption: The Bonds are not subject to optional redemption prior to maturity. Authorization: By adoption of an authorizing ordinance (the “Bond Ordinance”) authorized by the Illinois Municipal
Code and the Local Government Debt Reform Act. Security: In the opinion of Bond Counsel, Evans, Froehlich, Beth & Chamley, Champaign, Illinois, the Bonds
are valid and legally binding upon the City and all taxable property of the City is subject to the levy of ad valorem taxes to pay the same without limitation as to rate. The amount of such taxes that may be extended to pay the Bonds is, however, limited as provided by law. The enforceability of the Bonds against the City 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. See “THE DESCRIPTION OF THE BONDS” herein.
Credit Rating: A rating for the Bonds has been requested from Standard & Poor’s, a Division of the McGraw-Hill
Companies. Purpose: Bond proceeds will be used to finance roads and infrastructure facilities and improvements, and
related facilities, improvements and costs and to pay the costs of issuance. See “THE PROJECT” herein.
Tax Exemption: Evans, Froehlich, Beth & Chamley, Champaign, Illinois, as Bond Counsel, will provide an opinion as
to the tax exemption of the interest on the Bonds as discussed under “TAX EXEMPTION” in this Official Statement. Interest on the Bonds is not exempt from present State of Illinois income taxes. See also APPENDIX C for a proposed form of Bond Counsel opinion.
Bank Qualification: 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” herein. Bond Registrar/Paying Agent: The Bank of New York Mellon Trust Company, N.A., Chicago, Illinois. Delivery: The Bonds are expected to be delivered on or about August 1, 2013. 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: Original denominations, or integral multiples thereof, which permit such amounts to accrue to a value
at maturity of $5,000 or an authorized integral multiple thereof. Financial Advisor: Speer Financial, Inc., Chicago, Illinois. *Subject to change.
City of Lockport, Will County, Illinois General Obligation Capital Appreciation Limited Bonds, Series 2013
5
CITY OF LOCKPORT
Will County, Illinois Steven Streit
Mayor Aldermen
Peter Colarelli Denise Marynowski Brian Smith Darren Deskin Robert Perretta Kelly Turner Kris Capadona Jason Vandermeer
__________________________________ Officials
Alice Matteucci City Clerk
Frank Koehler Interim City Administrator and
City Planner
David Palya City Treasurer
Erik Brown Finance Director
Ronald Caneva, Esq. Corporate Counsel
DESCRIPTION OF THE BONDS
Security for the Bonds In the opinion of Bond Counsel, the Bonds are valid and legally binding upon the City, and all taxable property
in the City is subject to the levy of ad valorem taxes (the “Levied Taxes”) to pay the same without limitation as to rate, 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 amount of Levied Taxes that may be extended to pay the Bonds is, however, limited as provided by applicable law related to “limited bonds”.
The Bonds are limited bonds and are issued pursuant to the Illinois Municipal Code, as supplemented and amended (the “Municipal Code”), and particularly as supplemented by the Local Government Debt Reform Act of the State of Illinois, as amended (the “Debt Reform Act”, and together with the Municipal Code, as supplemented and amended, the “Act”). Although the obligation of the City to pay the Bonds is a general obligation under the Act and all taxable property in the City is subject to the levy of taxes to pay the Bonds without limitation as to rate, the amount of Levied Taxes that will be extended to pay the Bonds is limited by the Property Tax Extension Limitation Law of the State of Illinois, as amended (the “Limitation Law”). The Debt Reform Act provides that the Bonds are payable from the debt service extension base of the City (the “Base”), which is an amount equal to that portion of the extension for the City for the 1994 levy year constituting an extension for payment of principal and interest on bonds issued by the City without referendum, but not including alternate bonds issued under Section 15 of the Debt Reform Act or refunding obligations issued to refund or to continue to refund obligations of the City initially issued pursuant to referendum, increased each year, commencing with the 2009 levy year, by the lesser of 5% or the percentage increase in the Consumer Price Index (as defined in the Limitation Law) during the 12-month calendar year preceding the levy year. The Limitation Law further provides that the annual amount of taxes to be extended to pay the Bonds and all other limited bonds heretofore and hereafter issued by the City shall not exceed the Base of the City.
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The City’s outstanding General Obligation Limited Tax Bonds, Series 2005A, General Obligation Limited Tax Bonds, Series 2008 and General Obligation Limited Tax Bonds, Series 2009 (together, the “Outstanding Limited Bonds”), and the Bonds constitute the only series of limited bonds of the City which are payable from the Base. The City is authorized to issue from time to time additional limited bonds payable from the Base, as permitted by law, and to determine the lien priority of payments to be made from the Base to pay the City’s limited bonds. The amount of the Base currently is $860,728. The following chart shows the Base of the City and outstanding non-referendum debt service, including the Bonds:
Available Non-Referendum Debt Service Extension Base Margin(1) Available Debt Service Series Series Series Series Total Debt Debt Service Year(2) Extension Base 2005A 2008 2009 2013(3)(4) Service(4) Extension Base Margin(4) 2014 ......... $860,728 $202,995 $175,150 $405,000 $ 0 $ 783,145 $77,583 2015 ......... 860,728 0 351,450 435,000 70,000 856,450 4,278 2016 ......... 860,728 0 0 135,000 725,000 860,000 728 2017 ......... 860,728 0 0 0 785,000 785,000 75,728 Total ...... $202,995 $526,600 $975,000 $1,580,000 $3,284,595 Notes: (1) Source: the District. (2) All debt service for 2013 has previously matured. (3) Estimated at an average coupon of 2.00%. (4) Subject to change.
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THE CITY Overview The City of Lockport (the “City”), is a non-home rule municipality incorporated in 1830. The City is located in east central Will County, approximately 35 miles southwest of Chicago’s “Loop” business district. Neighboring communities include Romeoville and Lemont to the north, Crest Hill, Joliet and New Lenox to the south, Homer Glen to the east, and unincorporated land to the west. The City’s population as of the 2000 U.S. Census was 15,191, a 61% increase over the 1990 Census of 9,401. A special Census conducted in 2007 put the City’s population at 24,059 and at the 2010 Census it was 24,839. Organization and Services The City is governed by a Mayor and an eight member City Council. The Mayor is elected at large for a four year term, and the City Council is elected from four wards for four year terms. The City Clerk and the City Treasurer are also elected at large for four year terms. The City Council appoints an Administrator, Attorney and Police Chief. The City Administrator is responsible for handling the day to day operations of the City. The City has 97.6 full-time equivalent employees. A labor contract expired on June 30, 2011, with the International Operating Engineers Number 150. In addition, the City employees 37 police officers, with a labor contract with the MAP Number 75, which expired June 30, 2011. The City is currently negotiating new agreements with both unions. City services include police protection, street maintenance and repair, and water and sewerage systems. The City has entered into an agreement with the Bonnie Brae-Forest Manor Sanitary District and the Lockport Heights Sanitary District, in which sanitary services are consolidated under the management of the City. Fire protection services are provided by the Lockport Fire District, Northwest Homer Fire Protection District and the Homer Township Fire Protection District. Community Life The Lockport Township Park District (the “Park District”) serves City residents. The Park District owns and maintains dozens of neighborhood parks with picnic areas, sporting fields, indoor/outdoor pools and water parks, racquet and health club, and tennis courts. The Park District’s 18-hole golf course and club house, Prairie Bluff Golf Club, is located at Route 53 and Renwick Road. The Park District offers hundreds of recreational programs for all ages, including sports, swimming, crafts and more. City residents are served by the Des Plaines Valley Public Library District (the “Library District”) which has over 159,000 books. The Library District is a member of the Heritage Trail Library System which provides City residents access to materials the Library District may not have in its collection. Education Elementary education is provided by school districts 33-C, 89, 90, 91 and 92. Secondary education is provided by Lockport Township High School District Number 205. The high school recently completed a $35 million addition and renovation to its east campus. Continuing education, college transfer courses and trade programs are available through Community College District Number 525 in nearby Joliet.
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City residents have access to many colleges and universities throughout the Chicago metropolitan area. Lewis University, located in nearby Romeoville, is a coeducational university with an enrollment of approximately 3,700 students. Lewis University offers more than 60 majors in the humanities, social sciences, and natural sciences, as well as aviation, business, computer science, communications, education, fine arts and nursing. The University of St. Francis, located in Joliet, serves more than 3,300 undergraduate and graduate students. The University of St. Francis offers programming in the areas of the arts and sciences, business and professional studies, nursing and allied health, and baccalaureate completion for health professionals. Transportation City residents can easily commute to both Joliet and Chicago. Archer Avenue (I-171), Joliet Road (I-53) and 159th Street (I-7) run through the City. The new I-355 extension, which runs along the City’s eastern border with six interchanges, provides a regional connection that improves north-south mobility between Interstate 55 and Interstate 80. The extension will reduce travel times by 20 percent and provide a more direct route between the City and the entire Chicagoland region. The “Loop” is a 50-minute drive, Midway Airport is a 40-minute drive and O’Hare International Airport is a 65-minute drive. The Metra/Heritage Corridor takes 53 minutes to reach the “Loop”. The Lewis-Lockport Airport is located just outside the City. Pace bus service is available. Economy
Currently underway is a 228 acres, 2.6 million square foot business park being developed by ML Realty Partners at the southeast corner of 143rd Street and I-355. Bridge Development is working on the extension of utilities to its 50 acre, 800,000 square foot business park, located at the southeast corner of 163rd Street and I-355. New business parks have been suggested at two other location – one at the southwest corner of 143rd Street and I-355, and the other at the southwest corner of 163rd and I-355.
Two major assisted living facilities have been proposed in recent weeks. The first project, located at Cedar and
Victoria Crossings, is in excess of 98,500 square feet and reflects an investment value in excess of $12,500,000. The second facility, located on Prime Blvd, just south of 167th Street and east of I-355, is in excess of 109,000 square foot and reflects an investment value in excess of $20,000,000.
On the site of the former Chevron/Texaco Refinery, the City is reviewing plans for the construction of two
above ground fuel storage tanks, with the prospect of a third storage tank. Oil product would be piped to the site via existing underground pipe lines. The product will then be piped, to barge containers, for shipment along the Sanitary-Ship Canal. Estimated value of this project is in excess of $15 million.
During the past two years, there has been renewed interest in vacant commercial space along Ninth Street/Illinois Route 7. A former K-Mart center was renovated to accommodate a Berkot’s Grocery Store, Big Lots retail store, and miscellaneous retail. An addition was constructed on the north end of the building to allow for the development of a Midas Auto Repair facility. A former retail center west of the K-mart center and on the north side of the street was remodeled and expanded to allow for a Corwin Pharmacy and new retail users. A new façade was constructed on the center, new signage installed, and landscaping placed throughout the site.
Single family home construction, while not at pre-recession levels, remains strong. Thirty new homes were
constructed in 2011, and 32 homes in 2012. The City is on pace for an additional 35-40 homes during 2013.
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SOCIOECONOMIC INFORMATION Employment The following employment data shows a consistently diverse and strong growth trend for employment in Will County. This data is NOT comparable to similar U.S. Census statistics, which would include government employment, and establishments not covered by the Illinois Unemployment Insurance Program, and could classify employment categories differently.
Will County Private, Non-Agricultural Employment Covered by the Illinois Unemployment Insurance Act(1)
(Data as of March for each Year) 2007 2008 2009 2010 2011 Farm and Forestry .................................... 302 269 261 243 233 Mining and Construction .............................. 14,593 14,401 10,997 9,743 9,500 Manufacturing ........................................ 14,295 20,391 19,307 18,185 19,544 Transportation, Communications, Utilities ............ 12,182 13,528 13,320 13,461 14,366 Wholesale Trade ...................................... 11,222 12,121 12,026 12,605 12,854 Retail Trade ......................................... 25,606 27,175 25,863 26,059 26,716 Finance, Insurance, Real Estate ...................... 6,644 6,828 6,754 7,875 7,638 Services(2) .......................................... 69,821 66,058 65,779 67,323 70,479 Total .............................................. 154,665 160,771 154,307 155,494 161,330 Percent Change ..................................... 6.50%(3) 3.95% (4.02%) 0.77% 3.75% Notes: (1) Source: Illinois Department of Employment Security. (2) Includes unclassified establishments. (3) Percent increase based on 145,222 employment in 2006.
Following are lists of large employers located in the City and in the surrounding area. Major City Employers(1)
Approximate
Name Product/Service Employment Grand Prairie Transit, Inc. ............................ School Buses ..................................................... 150 Toyal America, Inc. .................................... Aluminum Powders and Pigments .................................... 110 Paramount Plastics, Inc. ............................... Plastic Injection Molding ........................................ 90 Walco Tool & Engineering Corp. ......................... Precision Surface Grinding and CNC Machine Job Shop .............. 90 Concrete By Wagner, Inc ................................ Concrete Work .................................................... 80 Pyramid Custom Cabinets, Inc. .......................... Custom Kitchen Cabinets .......................................... 75 Bending Specialists LLC ................................ Metal Bending and Fabricating .................................... 73 Century 21/Pro-Team .................................... Real Estate Agents and Managers .................................. 60 Deerfield Construction Group, Inc. ..................... Cellular Communication Tower Construction ........................ 60 Atmi Dynacore .......................................... Precast Concrete Products ........................................ 50 Binzel Industries, Inc. ................................ Architectural Metal Work ......................................... 50 Greif, Inc. ............................................ Polyethylene Shipping Containers ................................. 50 Coldwell Banker Honig-Bell ............................. Real Estate Agency ............................................... 45 Note: (1) Source: 2013 Illinois Manufacturers Directory, 2013 Illinois Services Directory and a selective telephone survey.
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Major Area Employers(1)
Approximate Location Name Product/Service Employment Joliet ..................... Provena Saint Joseph Medical Center . Regional Medical Center ............................... 2,430 Joliet ..................... Caterpillar Inc. .................... Construction Machinery ................................ 2,000 Joliet ..................... Hollywood Casino Joliet ............. Casinos, Hotels, Resorts and Riverboats ............... 2,000 New Lenox .................. Silver Cross Hospital ............... General Hospital ...................................... 1,908 Jolliet .................... CommScope ........................... Communications Systems and Equipment .................. 700 Romeoville ................. Kehe Food Distributors, Inc. ........ Distributor of Frozen Foods ........................... 700 Joliet ..................... Central Grocers Co-Op, Inc. ......... Grocery Wholesaler .................................... 600 Romeoville ................. Lewis University .................... Co-educational University ............................. 600 Lemont ..................... CITGO Petroleum Corp. ............... Petroleum Refining .................................... 500 Joliet ..................... Ecolab, Inc. ........................ Cleaning Compounds .................................... 450 Joliet ..................... Chicago International Trucks, LLC ... Truck Rental and Leasing .............................. 400 Romeoville ................. Kennedy Transportation Co. .......... National Trucking Transportation and Logistics Services 348 Plainfield ................. Diageo North America ................ Gin and Vodka Distilling .............................. 300 Joliet ..................... T.J. Lambrecht Construction, Inc. ... Heavy Highway Construction ............................ 300 Romeoville ................. Great Kitchens, Inc. ................ Frozen Pizzas ......................................... 300 Plainfield ................. CB & I Constructors, Inc. ........... Storage Tank Insulation Equipment ..................... 300 Note: (1) Source: 2013 Illinois Manufacturers Directory, 2013 Illinois Services Directory and a selective telephone survey.
The following tables show employment by industry and by occupation for the City, Will County (the “County”) and the State of Illinois (the “State”) as reported by the U.S. Census Bureau 2007-2011 American Community Survey 5-year estimated values. Employment By Industry(1)
The City Will County State of Illinois Classification Number Percent Number Percent Number Percent Agriculture, Forestry, Fishing and Hunting, and Mining ..... 46 0.4% 1,582 0.5% 63,960 1.1% Construction ............................................... 963 7.7% 22,503 7.0% 343,232 5.7% Manufacturing .............................................. 1,512 12.1% 39,730 12.3% 775,663 12.8% Wholesale Trade ............................................ 434 3.5% 12,263 3.8% 196,738 3.3% Retail Trade ............................................... 1,173 9.4% 38,195 11.8% 659,708 10.9% Transportation and Warehousing, and Utilities .............. 1,253 10.0% 24,374 7.6% 355,486 5.9% Information ................................................ 292 2.3% 6,769 2.1% 135,688 2.2% Finance and Insurance, and Real Estate and Rental and Leasing 855 6.8% 23,402 7.3% 466,468 7.7% Professional, Scientific, and Management, Administrative, and Waste Management Services ............................. 1,346 10.8% 34,027 10.5% 662,987 11.0% Educational Services and Health Care and Social Assistance . 2,644 21.2% 68,300 21.2% 1,337,455 22.1% Arts, Entertainment and Recreation and Accommodation and Food Services ............................................. 993 8.0% 25,377 7.9% 524,925 8.7% Other Services, Except Public Administration ............... 471 3.8% 14,080 4.4% 288,538 4.8% Public Administration ...................................... 504 4.0% 11,991 3.7% 232,923 3.9% Total .................................................... 12,486 100.00% 322,593 100.00% 6,043,771 100.0% Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2007 to 2011.
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Employment By Occupation(1)
The City Will County State of Illinois Classification Number Percent Number Percent Number Percent Management, Business, Science and Arts ................... 4,689 37.6% 114,459 35.5% 2,167,571 35.9% Service .................................................. 1,624 13.0% 47,282 14.7% 1,007,434 16.7% Sales and Office ........................................ 3,348 26.8% 86,617 26.9% 1,550,202 25.6% Natural Resources, Construction, and Maintenance ......... 1,302 10.4% 30,078 9.3% 474,566 7.9% Production, Transportation, and Material Moving ........... 1,523 12.2% 44,157 13.7% 843,998 14.0% Total ................................................... 12,486 100.00% 322,593 100.00% 6,043,771 100.0% Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2007 to 2011.
Annual Average Unemployment Rates(1)
Calendar The Will State of Year City County Illinois
2004 ............... 4.0% 6.2% 6.2% 2005 ............... 3.8% 5.8% 5.8% 2006 ............... 2.8% 4.2% 4.6% 2007 ............... 3.0% 4.7% 5.0% 2008 ............... 4.0% 6.1% 6.4% 2009 ............... 6.7% 10.1% 10.0% 2010 ............... 10.6% 10.4% 10.3% 2011 ............... 10.3% 10.1% 9.7% 2012 ............... 9.1% 9.0% 8.9% 2013(2) ............ 9.4% 10.0% 9.4%
Notes: (1) Source: Illinois Department of Employment Security. (2) Preliminary rates for the month of March 2013.
Building Permits
City Building Permits(1) (Excludes the Value of Land)
Calendar Single-Family Multi-Family Miscellaneous Total Year Units Value Number Value Value Value
2003 ..... 512 $ 75,513,064 0 $ 0 $ 3,751,090 $ 79,264,154 2004 ..... 450 71,169,983 48 3,617,460 9,459,914 84,247,357 2005 ..... 580 119,565,538 0 0 6,045,416 125,610,954 2006 ..... 295 63,207,286 16 1,562,854 4,447,341 69,217,481 2007 ..... 150 39,669,229 0 0 6,126,056 45,795,285 2008 ..... 382 33,606,701 0 0 11,497,249 45,103,950 2009 ..... 24 6,491,227 2 858,455 1,803,396 9,153,078 2010 ..... 37 10,934,256 0 0 1,625,294 12,559,550 2011 ..... 26 8,885,520 0 0 2,137,900 11,023,420 2012 ..... 34 11,196,981 0 0 16,450,085 27,647,066 Note: (1) Source: the City.
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Housing
The U.S. Census Bureau 5-year estimated values reported that the median value of the City’s owner-occupied homes was $231,500. This compares to $236,300 for the County and $198,500 for the State. The following table represents the five year average market value of specified owner-occupied units for the City, the County and the State at the time of the 2007-2011 American Community Survey.
Specified Owner-Occupied Units(1)
The City Will County State of Illinois Value Number Percent Number Percent Number Percent Under $50,000 .............. 166 2.2% 4,125 2.2% 218,208 6.7% $50,000 to $99,999 ......... 123 1.6% 6,431 3.4% 451,967 13.8% $100,000 to $149,999 ...... 474 6.2% 19,461 10.4% 464,158 14.2% $150,000 to $199,999 ....... 1,982 25.7% 37,615 20.1% 518,957 15.8% $200,000 to $299,999 ....... 2,825 36.7% 61,761 33.0% 725,004 22.1% $300,000 to $499,999 ....... 2,079 27.0% 45,408 24.2% 613,486 18.7% $500,000 to $999,999 ....... 54 0.7% 11,584 6.2% 234,600 7.2% $1,000,000 or more ......... 0 0.0% 936 0.5% 53,191 1.6% Total .................... 7,703 100.00% 187,321 100.00% 3,279,571 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2007 to 2011.
Mortgage Status(1)
The City Will County State of Illinois
Value Number Percent Number Percent Number Percent Housing Units with a Mortgage ................... 6,292 81.7% 148,888 79.5% 2,272,745 69.3% Housing Units without a Mortgage ................ 1,411 18.3% 38,433 20.5% 1,006,826 30.7% Total ......................................... 7,703 100.00% 187,321 100.00% 3,279,571 100.0% Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2007 to 2011.
Income
Per Capita Personal Income for the Ten Highest Income Counties in the State(1) Rank 2007-2011 1 ..................... Lake County ................. $38,512 2 ..................... DuPage County ............... 38,405 3 ..................... McHenry County .............. 32,318 4 ..................... Monroe County ............... 31,570 5 ..................... Kendall County .............. 31,325 6 ..................... Will County ................. 30,199 7 ..................... Cook County ................. 29,920 8 ..................... Woodford County ............. 29,886 9 ..................... Kane County ................. 29,864 10 ..................... Sangamon County ............. 29,167
Note: (1) Source: U.S. Bureau of the Census. 2007-2011
American Community 5-Year Estimates.
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The following shows a ranking of median family income for the Chicago metropolitan area from the 2007-2011 American Community Survey.
Ranking of Median Family Income(1)
Ill. Family Ill. County Income Rank DuPage County ............. $94,049 1 Lake County ............... 93,260 2 Kendall County ............ 90,696 3 McHenry County ............ 87,133 4 Will County ............... 86,372 5 Kane County ............... 79,686 7 Cook County ............... 65,842 20 Note: (1) Source: U.S. Bureau of the Census.
2007-2011 American Community 5-Year Estimates.
The U.S. Census Bureau 5-year estimated values reported that the City had a median family income of
$91,274. This compares to $86,372 for the County and $69,658 for the State. The following table represents the distribution of family incomes for the City, the County and the State at the time of the 2007-2011 American Community Survey.
Family Income(1)
The City Will County State of Illinois Income Number Percent Number Percent Number Percent Under $10,000 .............. 96 1.5% 3,744 2.2% 131,841 4.2% $10,000 to $14,999 ......... 29 0.5% 2,610 1.5% 86,610 2.7% $15,000 to $24,999 ......... 178 2.8% 7,687 4.5% 224,421 7.1% $25,000 to $34,999 ......... 245 3.9% 9,338 5.4% 260,262 8.3% $35,000 to $49,999 ......... 624 9.9% 16,540 9.6% 389,862 12.4% $50,000 to $74,999 ......... 1,097 17.4% 31,353 18.2% 606,737 19.2% $75,000 to $99,999 ......... 1,320 20.9% 30,784 17.9% 486,151 15.4% $100,000 to $149,999 ....... 1,966 31.2% 41,071 23.9% 547,784 17.4% $150,000 to $199,999 ....... 450 7.1% 17,636 10.2% 212,016 6.7% $200,000 or more ........... 304 4.8% 11,401 6.6% 207,841 6.6% Total .................... 6,309 100.00% 172,164 100.00% 3,153,525 100.0% Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2007 to 2011.
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The U.S. Census Bureau 5-year estimated values reported that the City had a median household income of $79,750. This compares to $76,453 for the County and $56,576 for the State. The following table represents the distribution of household incomes for the City, the County and the State at the time of the 2007-2011 American Community Survey.
Household Income(1)
The City Will County State of Illinois
Income Number Percent Number Percent Number Percent Under $10,000 .............. 197 2.3% 6,843 3.1% 324,506 6.8% $10,000 to $14,999 ......... 165 1.9% 5,971 2.7% 225,927 4.7% $15,000 to $24,999 ......... 448 5.2% 14,933 6.7% 480,204 10.1% $25,000 to $34,999 ......... 501 5.8% 15,413 7.0% 462,115 9.7% $35,000 to $49,999 ......... 873 10.1% 23,687 10.7% 628,998 13.2% $50,000 to $74,999 ......... 1,800 20.9% 41,988 18.9% 884,623 18.5% $75,000 to $99,999 ......... 1,729 20.1% 36,053 16.3% 627,813 13.2% $100,000 to $149,999 ....... 2,097 24.3% 45,933 20.7% 656,199 13.7% $150,000 to $199,999 ....... 500 5.8% 18,757 8.5% 243,765 5.1% $200,000 or more ........... 304 3.5% 12,144 5.5% 238,852 5.0% Total .................... 8,614 100.00% 221,722 100.00% 4,773,002 100.0% Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2007 to 2011.
Retail Activity
Sales tax receipts exceeded 19% of Governmental Fund Type revenues in fiscal 2012. Following is a summary of the City’s sales tax receipts as collected and disbursed by the State of Illinois.
Retailers’ Occupation, Service Occupation and Use Tax(1) State Fiscal Year State Sales Tax Annual Percent Ending June 30 Distributions(2) Change + (-)
2004 ..................................... $1,320,808 5.31%(3) 2005 ..................................... 1,377,263 4.27% 2006 ..................................... 1,514,238 9.95% 2007 ..................................... 1,638,802 8.23% 2008 ..................................... 1,989,045 21.37% 2009 ..................................... 2,305,280 15.90% 2010 ..................................... 2,333,735 1.23% 2011 ..................................... 2,343,653 0.42% 2012 ..................................... 2,390,938 2.02% 2013 ..................................... 2,438,660 2.00% Growth from 2004 to 2013 ........................................................ 84.63%
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 Tax, 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 of $1,254,250.
In 2011, a voter-approved referendum was passed for a 1% non-home rule sales tax. Collection began August
2011.
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THE PROJECT
Bond proceeds will be used to finance roads and infrastructure facilities and improvements, and related facilities, improvements and costs and to pay the costs of issuance. The City has budgeted to address various infrastructure projects in Fiscal Year 2014. Work to be completed will include reconstruction of roads and infrastructure, resurfacing, ADA improvements/enhancements, sidewalk replacements, a pedestrian bridge and intersection improvements. These projects will be spread out throughout the City, with the goal being to maintain the best of the City’s infrastructure, while replacing old infrastructure and enhancing the City with other improvements.
DEBT INFORMATION
After issuance of the Bonds, the City will have outstanding $12,768,584 (subject to change) principal amount of general obligation debt and $515,000 principal amount of debt certificates. As of June 30, 2012, the City had IEPA loans outstanding in the principal amount of $12,092,285 and a note in the principal amount of $1,250,000 with the Illinois State Toll Highway Authority.
The City does not intend to issue additional debt within the next three months.
General Obligation Bonded Debt(1) (Principal Only)
Limited Tax Bonds Cumulative Calendar Series Series Series Series Outstanding The Total Principal Retired(3) Year 2005A 2008 2009 2012(2) Debt Bonds(3) Debt(3) Amount Percent 2014 ..... $195,000 $145,000 $365,541 $1,300,000 $ 2,005,541 $ 0 $ 2,005,541 $ 2,005,541 15.71% 2015 ..... 0 330,000 377,706 1,325,000 2,032,706 0 2,032,706 4,038,247 31.63% 2016 ..... 0 0 112,437 1,350,000 1,462,437 68,076 1,530,513 5,568,760 43.61% 2017 ..... 0 0 0 1,400,000 1,400,000 691,186 2,091,186 7,659,946 59.99% 2018 ..... 0 0 0 1,425,000 1,425,000 733,638 2,158,638 9,818,584 76.90% 2019 ..... 0 0 0 1,450,000 1,450,000 0 1,450,000 11,268,584 88.25% 2020 ..... 0 0 0 1,500,000 1,500,000 0 1,500,000 12,768,584 100.00% Total .. $195,000 $475,000 $855,684 $9,750,000 $11,275,684 $1,492,900 $12,768,584 Notes: (1) Source: the City. (2) Alternate revenue bonds payable from revenues from State Income Taxes and Public Infrastructure Sales Tax. (3) Subject to change.
Debt Certificates(1)
(Principal Only)
Cumulative Calendar Series Principal Retired Year 2005B Amount Percent
2014 .......... $165,000 $165,000 32.04% 2015 .......... 170,000 335,000 65.05% 2016 .......... 180,000 515,000 100.00% Total ....... $515,000
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Detailed Overlapping Bonded Debt(1) (As of May 14, 2013)
Outstanding Applicable to City Debt Percent(2) Amount
Schools: School District Number 89 ......................... $ 1,820,000 55.36% $ 1,007,552 School District Number 91 ......................... 4,495,000 85.56% 3,845,922 School District Number 92 ......................... 2,940,000 21.84% 642,096 High School District Number 205 ................... 11,376,508 26.06% 2,964,718 Community College District Number 525 ............. 157,060,000 3.22% 5,057,332 Total Schools ..................................................................... $13,517,620 Others: Will County Forest Preserve District .............. $153,802,604 3.19% $ 4,906,303 Homer Township .................................... 6,745,000 24.34% 1,641,733 Lockport Park District ............................ 4,001,000 39.67% 1,587,197 White Oak Library ................................. 22,990,000 15.49% 3,561,151 Total Others ...................................................................... $11,696,384 Total Schools and Others Overlapping Bonded Debt .................................. $25,214,004 Notes: (1) Source: Will County Clerk. (2) Overlapping debt percentages based on 2012 EAV, the most current available.
Statement of Bonded Indebtedness(1)
Ratio To Per Capita
Amount Equalized Estimated (2010 Census Applicable Assessed Actual 24,839) City EAV of Taxable Property, 2012 ............... $ 603,967,080 100.00% 33.33% $24,315.27 Estimated Actual Value, 2012 ..................... $1,811,901,240 300.00% 100.00% $72,945.82 Direct Bonded and Certificated Debt(2)(3) ........ $ 13,283,585 2.20% 0.73% $ 534.79 Less: Self-Supporting Debt ...................... (9,750,000) (1.61%) (0.54%) (392.53) Net Direct Bonded and Certificated Debt ....... $ 3,533,585 0.59% 0.20% $ 142.26 Overlapping Bonded Debt(4): Schools .......................................... $ 13,517,620 2.24% 0.75% $ 544.21 Others ........................................... 11,696,384 1.94% 0.65% 470.89 Total Overlapping Bonded Debt .................. $ 25,214,004 4.17% 1.39% $ 1,015.10 Total Direct and Overlapping Debt(3) ........... $ 28,747,589 4.76% 1.59% $ 1,157.36 Notes: (1) Source: the City. (2) Includes $515,000 Series 2005B Debt Certificates and the Bonds. (3) Subject to change. (4) Overlapping bonded debt as of May 14, 2013.
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Legal Debt Margin(1)
2012 City Equalized Assessed Valuation .......................... $603,967,080 Statutory Debt Limitation (8.625%) .............................. $52,092,161 Non-Referendum Debt Limitation (0.5%) ........................... $3,019,835 General Obligation Bonded Debt: Series 2005A(2) ................................................. $ 195,000 $ 195,000 $ 195,000 Series 2008(2) .................................................. 475,000 475,000 475,000 Series 2009(2) .................................................. 855,684 855,684 855,684 Series 2012(ARS)(3) ............................................. 9,750,000 9,750,000 0 The Bonds(2)(4) ................................................. 1,492,900 1,492,900 1,492,900 Total General Obligation Bonded Debt(4) ....................... $ 12,768,584 $12,768,585 $3,018,584 Less: Alternate Revenue Bonds(3) ............................... (9,750,000) Net General Obligation Bonds(4) ................................. $ 3,018,585 Series 2005B Debt Certificates(5) ............................... $ 515,000 $ 515,000 $ 0 Total Applicable Debt(4) ........................................ $ 3,533,585 $3,018,584 Legal Debt Margin(4) ............................................ $48,558,576 $ 1,251 Note: (1) Source: the City. (2) Limited Tax Bonds. (3) The Series 2012 Bonds are issued as general obligation alternate bonds under Illinois statutes and do not count against the 8.625% of EAV debt limit for general obligation debt so long as the debt service levy for such bonds is abated annually and not extended. (4) Subject to change. (5) Payable from Waterworks and Sewerage Revenues.
PROPERTY ASSESSMENT AND TAX INFORMATION
For the 2012 levy year, the City’s EAV was comprised of approximately 88% residential, 2% industrial, 10%
commercial, and less than 0.1% farm and railroad property valuations.
Equalized Assessed Valuation(1) Levy Years Property Class 2008 2009 2010 2011 2012 Residential ............. $635,161,645 $643,658,383 $615,396,946 $573,082,193 $530,561,733 Farm .................... 482,647 551,335 667,167 624,755 591,915 Commercial .............. 59,185,845 60,815,369 65,333,391 60,912,785 60,634,535 Industrial .............. 14,507,452 14,512,120 14,382,086 13,764,266 11,641,101 Railroad ................ 366,082 378,096 428,213 510,496 537,796 Total ................. $709,703,671 $719,915,303 $696,207,803 $648,894,495 $603,967,080 Percent Change +(-) .... 7.79%(2) 1.44% (3.29%) (6.80%) (6.92%) Notes: (1) Source: Will County Clerk. (2) Percentage change based on 2007 EAV of $658,428,842.
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Representative Tax Rates(1) (Per $100 EAV) Levy Years 2008 2009 2010 2011 2012
City Rates: Corporate ................................. $0.2705 $0.2790 $0.2935 $0.2860 $0.3082 Street - Bridge ........................... 0.0171 0.0165 0.0142 0.0086 0.0006 Police Protection ......................... 0.0758 0.0766 0.1449 0.1713 0.1841 Civil Defense ............................. 0.0055 0.0038 0.0008 0.0019 0.0020 I.M.R.F ................................... 0.0239 0.0241 0.0287 0.0309 0.0274 Social Security ........................... 0.0460 0.0453 0.0162 0.0309 0.0274 Tort/Liability Insurance .................. 0.0460 0.0460 0.0209 0.0247 0.0332 Police Pension ............................ 0.0635 0.0798 0.1005 0.1078 0.1206 Audit ..................................... 0.0037 0.0042 0.0033 0.0039 0.0042 School Crossing Guard ..................... 0.0032 0.0032 0.0034 0.0041 0.0044 Garbage Disposal .......................... 0.0001 0.0001 0.0002 0.0002 0.0002 Street Lighting ........................... 0.0306 0.0298 0.0327 0.0370 0.0398 Stormwater Management ..................... 0.0233 0.0024 0.0001 0.0001 0.0001 Bond and Interest ......................... 0.1106 0.1093 0.1125 0.1213 0.1297 Total City Rate(2) ...................... $0.7198 $0.7201 $0.7719 $0.8287 $0.8819 .......................................... Will County ............................... 0.4751 0.4833 0.5077 0.5351 0.5696 Will County Forest Preserve ............... 0.1445 0.1519 0.1567 0.1693 0.1859 Will County Building Commission ........... 0.0191 0.0191 0.0197 0.0200 0.0212 Lockport Township ......................... 0.1590 0.1581 0.1621 0.1788 0.2035 City of Lockport Road and Bridge .......... 0.0373 0.0378 0.0413 0.0466 0.0521 Lockport Fire District .................... 0.8029 0.8132 0.8640 0.9644 1.0832 Des Plaines Valley Public Library District 0.1283 0.1315 0.1966 0.2214 0.2422 Lockport Park District .................... 0.3330 0.3351 0.3497 0.3860 0.4328 School District Number 91 ................. 2.7707 2.8026 3.0395 3.3676 3.7469 High School District Number 205 ........... 1.6603 1.6801 1.7606 1.9138 2.1179 Community College District Number 525 ..... 0.1896 0.2144 0.2270 0.2463 0.2768 Total Rate(3) ........................... $7.4396 $7.5472 $8.0968 $8.8780 $9.8140 Notes: (1) Source: Will County Clerk. (2) Statutory tax rate limits for the City are as follows: Corporate $0.4375; Street - Bridge $0.1000; Police Protection $0.6000; Civil Defense $0.0500; School Crossing Guard $0.0200; Garbage Disposal $0.2000; Street Lighting $0.0500; and Stormwater Management $0.0600. All others have no limit. (3) Representative tax rates for other government units are from Lockport Township tax code 1112, which represents approximately 20% of the City’s 2012 EAV.
Tax Extensions and Collections(1) Levy Coll. Taxes Total Collections Year Year Extended(2) Amount(3) Percent 2007 ............. 2008 ............. 6,105,037 6,097,346 99.87% 2008 ............. 2009 ............. 5,678,787 5,662,770 99.72% 2009 ............. 2010 ............. 5,765,723 5,730,061 99.38% 2010 ............. 2011 ............. 5,961,275 5,952,313 99.85% 2011 ............. 2012 ............. 5,971,014 5,957,694 99.78% 2012 ............. 2013(4) .......... 5,927,098 1,980,197 33.41% Notes: (1) Source: Will County Clerk.
(2) Tax extensions have been adjusted for abatements. (3) Total collections include back taxes, taxpayer refunds,
interest, etc. (4) As of June 3, 2013.
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Principal Taxpayers(1)
Taxpayer Name Business/Service 2012 EAV(2) Wal-Mart Real Estate Business Tr .......... Retail Store ....................................... $ 5,457,855 Equilon Enterprises LLC .................. Environmental Liability Management Services ........ 3,945,861 LCMC Associates LLC ...................... Real Property ...................................... 3,136,895 Panduit Corp ............................. Electric Wiring Components ......................... 2,778,449 Jetco Properties Inc. .................... Real Property ...................................... 2,039,273 Paramount Plastics Inc ................... Plastic Injection Molding .......................... 1,785,316 Lockport Lad LLC ......................... Real Property ...................................... 1,648,039 Lockport Partners I LLC .................. Real Property ...................................... 1,491,811 Baric Retail LLC ......................... Real Property ...................................... 1,487,749 Gator Lockport LLC ....................... Real Property ...................................... 1,400,887 Total .................................. ................................................... $25,172,135 Ten Largest Taxpayers as a Percent of the City's 2012 EAV ($603,967,080) .................... 4.17% Notes: (1) Source: Will County Clerk. (2) Every effort has been made to seek out 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 2012 EAV is the most current available.
REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES Tax Levy and Collection Procedures
Local assessment officers determine the assessed valuation of taxable real property and railroad property not
held or used for railroad operations. The Illinois Department of Revenue (the “Department”) assesses certain other types of taxable property, including railroad property held or used for railroad operations. Local assessment officers’ valuation determinations are subject to review at the county level and then, in general, to equalization by the Department. Such equalization is achieved by applying to each county’s assessments a multiplier determined by the Department. The purpose of equalization is to provide a common basis of assessments among counties by adjusting assessments toward the statutory standard of 33-1/3% of fair cash value. Farmland is assessed according to a statutory formula which takes into account factors such as productivity and crop mix. Taxes are extended against the assessed values after equalization.
Property tax levies of each taxing body are filed in the office of the county clerk of each county in which
territory of that taxing body is located. The county clerk computes the rates and amount of taxes applicable to taxable property subject to the tax levies of each taxing body and determines the dollar amount of taxes attributable to each respective parcel of taxable property. The county clerk then supplies to the appropriate collecting officials within the county the information needed to bill the taxes attributable to the various parcels therein. After the taxes have been collected, the collecting officials distribute to the various taxing bodies their respective shares of the taxes collected. Taxes levied in one calendar year are due and payable in two installments during the next calendar year. Taxes that are not paid when due, or that are not paid by mail and postmarked on or before the due date, are subject to a penalty of 1-1/2% per month until paid. Unpaid property taxes, together with penalties, interest and costs, constitute a lien against the property subject to the tax. Exemptions
An annual General Homestead Exemption (the “General Homestead Exemption”) provides that the Equalized Assessed Valuation (“EAV”) of certain property owned and used for residential purposes (“Residential Property”) may be reduced by the amount of any increase over the 1977 EAV, up to a maximum reduction of $3,500 for assessment years prior to assessment year 2004 in counties with less than 3,000,000 inhabitants, and a maximum reduction of $5,000 for assessment year 2004 through 2007 in all counties. Additionally, the maximum reduction is $5,500 for assessment year 2008 and the maximum reduction is $6,000 for assessment year 2009 and thereafter in all counties.
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The Homestead Improvement Exemption applies to Residential Properties that have been improved or rebuilt in the 2 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 (“Senior Citizens Homestead Exemption”) operates annually to reduce the EAV on a senior citizen’s home for assessment years prior to 2004 by $2,000 in counties with less than 3,000,000 inhabitants. For assessment years 2004 and 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. In addition, for assessment year 2008 and thereafter, the maximum reduction is $4,000 for all counties. Furthermore, beginning with assessment year 2003, for taxes payable in 2004, 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 (“Senior Citizens Assessment Freeze Homestead Exemption”) freezes property tax assessments for homeowners, who are 65 and older and receive a household income not in excess of the maximum income limitation. The maximum income limitation is $35,000 for years prior to 1999, $40,000 for assessment years 1999 through 2003, $45,000 for assessment years 2004 and 2005, $50,000 from assessment years 2006 and 2007 and for assessments year 2008 and after, the maximum income limitation is $55,000. In general, the Senior Citizens Assessment Freeze Homestead Exemption limits the annual real property tax bill of such property by granting to qualifying senior citizens an exemption as to a portion of the valuation of their property. In counties with a population of 3,000,000 or more, the exemption for all assessment years is equal to the EAV of the residence in the assessment year for which application is made less the base amount. Furthermore, for those counties with a population of less than 3,000,000, the Senior Citizens Assessment Freeze Homestead Exemption is as follows: through assessment year 2005 and for assessment year 2007 and later, the exempt amount is the difference between (i) the current EAV of their residence and (ii) the base amount, which is the EAV of a senior citizen’s residence for the year prior to the year in which he or she first qualifies and applies for the Exemption (plus the EAV of improvements since such year). For assessment year 2006, the amount of the Senior Citizens Assessment Freeze Homestead Exemption phases out as the amount of household income increases. The amount of the Senior Citizens Assessment Freeze Homestead Exemption is calculated by using the same formula as above, and then multiplying the resulting value by a ratio that varies according to household income.
Another exemption available to disabled veterans operates 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. 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. However, individuals claiming exemption under the Disabled Persons’ Homestead Exemption (“Disabled Persons’ Homestead Exemption”) or the Disabled Veterans Standard Homestead Exemption (“Disabled Veterans Standard Homestead Exemption”) cannot claim the aforementioned exemption.
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 aforementioned exemption.
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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 exemption under the Disabled Persons’ Homestead Exemption cannot claim the aforementioned exemption.
Beginning with assessment year 2007, the Returning Veterans’ Homestead Exemption (“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 the Returning Veterans’ Homestead 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, “or a leasehold interest of land on which a single family residence is located, which is occupied as a principle residence of a veteran returning from an armed conflict involving the armed forces of the United States who has an ownership interest therein, legal, equitable or as a lessee, and on which the veteran is liable for the payment of property taxes.” Those individuals eligible for the Returning Veterans’ Homestead Exemption may claim the Returning Veterans’ Homestead Exemption, in addition to other homestead exemptions, unless otherwise noted. Property Tax Extension Limitation Law
The Property Tax Extension Limitation Law, as amended (the “Limitation Law”), limits the annual growth in
the amount of property taxes to be extended for certain Illinois non-home-rule units, including the City. In general, the annual growth permitted under the Limitation Law is the lesser of 5% or the percentage increase in the Consumer Price Index during the calendar year preceding the levy year. Taxes can also be increased due to new construction, referendum approval of tax rate increases, mergers and consolidations.
The effect of the Limitation Law is to limit the amount of property taxes that can be extended for a taxing body.
In addition, general obligation bonds, notes and installment contracts payable from ad valorem taxes unlimited as to rate and amount cannot be issued by the affected taxing bodies unless they are approved by referendum, are alternate bonds or are for certain refunding purposes.
The City has the authority to levy taxes for many different purposes. See the table entitled Representative Tax
Rates under “PROPERTY ASSESSMENT AND TAX INFORMATION” herein. The ceiling at any particular time on the rate at which these taxes may be extended for the City is either (i) unlimited (as provided by statute), (ii) initially set by statute but permitted to be increased by referendum, (iii) capped by statute, or (iv) limited to the rate approved by referendum. Public Act 94-0976, effective June 30, 2006, provides that the only ceiling on a particular tax rate is the ceiling set by statute above, at which the rate is not permitted to be further increased by referendum or otherwise. Therefore, taxing districts (such as the City) will have increased flexibility to levy taxes for the purposes for which they most need the money. The total aggregate tax rate for the various purposes subject to the Limitation Law, however, will not be allowed to exceed the City’s limiting rate computed in accordance with the provisions of the Limitation Law.
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Local governments, including the City, can issue limited tax bonds in lieu of general obligation bonds that have
otherwise been authorized by applicable law.
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 Budgeting
The City’s budget development process begins in February of each year with the issuance of budgeting instructions by the Finance Department. These instructions provide detailed guidance to the City Staff on how to prepare departmental/divisional budget requests. Applicable forms are also provided. Department heads must submit their budget requests to the Finance Department in March. During the month of March, the Finance Department compiles a draft City Budget based upon the departmental requests and its projection of revenues for the budget year. In March and April, the City Administrator and Finance Director meet with department heads to review their budget requests. Adjustments are made to achieve budgetary balance and align the spending plan with the City Council’s priorities. During April, the Finance Department revises the draft budget, as directed by the City Council and City Administrator. The City Administrator submits his proposed City budget to the City Council for consideration in early June. The City Council approves the budget in June. Investment Policy
The City's investment policy allows the following investment vehicles:
Instruments of the United States of America or its agencies, instruments which are guaranteed by the full faith and credit of the United States as to principal and interest, and instruments issued by Fannie Mae.
Certain deposits in approved banks secured 110% by securities listed above, held in safekeeping, for all balances in excess of federal deposit insurance limits.
Shares of certain banks, certain commercial paper, repurchase agreements, U.S. Treasury strips, bankers’
acceptances, money market mutual funds, funds sponsored by government associations, municipal securities and the Illinois Funds Investment Pool which is under the oversight of the State of Illinois.
The City is specifically prohibited from investing in Sally Maes, reverse repurchase agreements, guaranteed investment contracts of life insurance companies, financial forwards or futures and writing call or put options.
Financial Reports
The City’s financial statements are audited annually by certified public accountants. The City’s financial statements are completed on a modified accrual basis of accounting consistent with generally accepted accounting principles applicable to governmental entities. See APPENDIX A for more detail.
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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 June 30, 2012 (the “2012 Audit”). The 2012 Audit has been prepared by Sikich, LLP, Independent Certified Public Accountant, Naperville, Illinois, (the “Auditor”), and 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 Official Statement. Other than as expressly set forth in this Official Statement, the financial information contained in the Excerpted Financial Information has not been updated since the date of the 2012 Audit. The inclusion of the Excerpted Financial Information in this Official Statement in and of itself is not intended to demonstrate the fiscal condition of the City since the date of the 2012 Audit. Questions or inquiries relating to financial information of the City since the date of the 2012 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 2012 Audit.
Statement of Net Assets Governmental Activities
Audited As of June 30 2008 2009(1) 2010 2011 2012 ASSETS: Cash and Investments ..................................... $ 8,616,897 $ 9,996,377 $ 9,095,076 $ 12,447,544 $ 25,527,407 Receivables: Property Taxes .......................................... 3,087,107 2,857,672 2,886,312 2,969,649 3,177,348 State Sales Tax ......................................... 726,756 707,499 726,557 697,925 1,124,982 State Income Tax ........................................ 216,817 449,493 851,017 853,281 691,155 Other ................................................... 169,496 286,375 464,673 388,697 460,287 Motor Fuel Taxes ........................................ 47,604 34,908 47,722 84,964 59,760 Grants .................................................. 0 0 0 0 74,082 Interfund Balances ....................................... 0 2,432,143 2,574,283 2,636,775 2,575,549 Internal Balances ........................................ 4,583,371 0 0 0 0 Inventory ................................................ 17,683 6,889 9,837 3,622 2,975 Prepaid Expenses ......................................... 142,635 232,769 199,894 194,455 210,772 Deferred Charges ......................................... 0 26,663 22,219 17,775 140,004 Capital Assets, Not Depreciated .......................... 7,667,645 26,825,128 23,706,389 24,393,234 24,823,735 Other Capital Assets, Net of Accumulated Depreciation .... 20,284,748 57,832,030 70,192,670 72,189,695 72,462,279 Total Assets ........................................... $45,560,759 $101,687,946 $110,776,649 $116,877,616 $131,330,335 LIABILITIES: Accounts Payable ......................................... $ 3,151,582 $ 1,466,332 $ 1,030,902 $ 1,503,948 $ 961,170 Accrued Salaries ......................................... 478,559 293,734 261,988 202,361 302,992 Accrued Interest Payable ................................. 70,793 95,565 73,426 56,323 38,273 Unearned Revenue ......................................... 0 2,831,569 2,940,921 3,408,186 3,408,444 Other Liabilities ........................................ 1,057,277 903,066 808,734 803,037 736,216 Noncurrent Liabilities: Due Within One Year ..................................... 1,870,000 1,426,571 1,179,658 1,195,859 1,280,345 Due In More Than One Year ............................... 2,156,280 4,597,604 5,265,916 4,833,509 14,258,257 Unamortized Bond Premium ................................ 0 195,605 163,004 0 0 Total Liabilities ...................................... $ 8,784,491 $ 11,810,046 $ 11,724,549 $ 12,003,223 $ 20,985,697 NET ASSETS: Invested In Capital Assets, Net of Related Debt .......... $23,987,393 $ 81,786,336 $ 90,973,320 $ 93,546,841 $ 94,909,844 Restricted For Debt Service .............................. 1,887,234 54,508 238,939 245,191 262,154 Restricted For Other Purposes ............................ 1,213,027 1,933,652 2,474,161 2,522,831 2,627,359 Unrestricted ............................................. 9,688,614 6,103,404 5,365,680 8,559,530 12,545,281 Total Net Assets ....................................... $36,776,268 $ 89,877,900 $ 99,052,100 $104,874,393 $110,344,638 Note: (1) Capital assets increased due to the inclusion of GASB 34.
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Statement of Activities Governmental Activities
Net (Expense) Revenue and Changes in Net Assets
Audited for the Fiscal Year Ended June 30 2008 2009 2010 2011 2012 NET EXPENSES: General Administration .................... $ (602,798) $ (575,248) $ (535,563) $ (793,164) $ (479,858) Police and Animal Control ................. (4,958,385) (5,004,456) (5,110,317) (4,916,135) (5,342,490) Buildings, Planning and Development ....... (477,177) (894,124) (2,304,082) (472,797) (218,961) Civil Defense ............................. (13,426) (18,084) 0 0 0 Streets and Yard Waste .................... (3,152,818) (1,606,230) 7,632,963 337,122 (2,322,011) Public Works and Special Projects ......... 11,367 (111,556) 392,047 1,038,906 972,724 Interest .................................. (187,652) (151,180) (136,467) (125,556) (79,625) Total Net Expenses ...................... $(9,380,889) $(8,360,878) $ ( 61,419) $ (4,931,624) $ (7,470,221) GENERAL REVENUES: Taxes: Property ................................. $ 6,059,941 $ 5,886,774 $ 5,709,823 $ 5,860,673 $ 5,964,238 State Sales .............................. 2,566,496 2,710,233 2,716,998 2,760,197 2,846,672 Non-Home Rule Sales ...................... 0 0 0 0 1,533,465 State Income ............................. 2,279,778 2,079,374 1,825,913 1,883,347 2,120,329 Motor Fuel ............................... 698,998 0 0 0 0 State Replacement ........................ 88,782 77,649 64,631 79,179 69,834 Earnings on Investments ................... 495,616 114,167 36,691 37,739 39,312 Other Income .............................. 118,895 89,456 100,253 104,719 187,799 Transfers ................................. 200,000 0 183,466 185,976 178,817 Total General Revenues .................. $12,508,506 $10,957,653 $10,637,775 $ 10,911,830 $ 12,940,466 Change in Net Assets ...................... $ 3,127,617 $ 2,596,775 $10,576,356 $ 5,980,206 $ 5,470,245 Net Assets at Beginning of Year ........... $33,648,651(1) $87,281,125(1) $88,475,744(1) $ 98,894,187(1) $104,874,393(1) Net Assets at End of Year ................. $36,776,268 $89,877,900 $99,052,100 $104,874,393 $110,344,638 Note: (1) As restated.
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General Fund Balance Sheet
Audited As of June 30 2008 2009 2010 2011 2012 ASSETS: Cash and Investments ..................................... $ 4,527,021 $ 6,076,968 $ 5,748,523 $ 7,900,910 $ 9,291,367 Receivables: Property Taxes ......................................... 2,259,969 2,462,917 2,492,688 2,579,693 2,758,525 State Sales Tax ........................................ 726,756 707,499 726,557 697,925 721,324 State Income Tax ....................................... 216,817 449,493 851,017 853,281 691,155 Other .................................................. 169,496 286,375 414,673 250,912 284,142 Due From Other Funds ..................................... 4,163,186 2,616,775 2,579,066 2,650,156 2,612,138 Inventory ................................................ 17,683 6,889 9,837 3,622 2,975 Prepaid Items ............................................ 142,635 232,769 199,894 194,455 210,772 Total Assets ........................................... $12,223,563 $12,839,685 $13,022,255 $15,130,954 $16,572,398 LIABILITIES AND FUND BALANCE: Liabilities: Accounts Payable ........................................ $ 1,686,551 $ 930,929 $ 323,788 $ 387,461 $ 304,043 Accrued Salaries ........................................ 478,559 293,734 261,988 202,361 302,992 Deferred Revenues ....................................... 2,465,986 2,441,103 2,484,340 2,593,527 2,591,857 Due to Other Funds ...................................... 0 124,639 3,223 66,596 5,439 Other Liabilities ....................................... 1,057,277 882,631 787,875 664,118 451,999 Total Liabilities ...................................... $ 5,688,373 $ 4,673,036 $ 3,861,214 $ 3,914,063 $ 3,656,330 Fund Balance(1): Reserved for Prepaid Items .............................. $ 142,635 $ 232,769 $ 199,894 $ 0 $ 0 Reserved for Other Purposes ............................. 1,213,027 5,007,208 4,321,155 0 0 Unreserved .............................................. 5,179,528 2,926,672 4,639,992 0 0 Nonspendable ............................................. 0 0 0 2,746,539 2,765,831 Restricted ............................................... 0 0 0 1,266,117 1,184,328 Assigned ................................................. 0 0 0 556,647 2,515,148 Unassigned ............................................... 0 0 0 6,647,588 6,450,761 Total Fund Balance ..................................... $ 6,535,190 $ 8,166,649 $ 9,161,041 $11,216,891 $12,916,068 Total Liabilities and Fund Balance ..................... $12,223,563 $12,839,685 $13,022,255 $15,130,954 $16,572,398 Note: (1) Reporting format change.
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General Fund Revenues and Expenditures
Audited for the Fiscal Year Ended June 30
2008 2009 2010 2011 2012 REVENUES: Taxes: Property Levies ........................................ $ 4,286,802 $ 4,675,785 $ 4,922,339 $ 5,074,065 $ 5,156,535 State Sales ............................................ 2,524,896 2,710,233 2,716,998 2,760,197 2,846,672 State Income ........................................... 2,279,778 2,079,374 1,825,913 1,883,347 2,120,329 Replacement ............................................ 88,782 77,649 64,631 79,179 69,834 Licenses, Permits and Inspections ....................... 1,941,631 1,570,680 1,212,796 833,922 809,188 Fines, Forfeitures and Penalties ........................ 363,788 449,625 537,910 1,321,573 479,341 Interest Income ......................................... 294,069 81,215 28,515 28,361 22,928 Refunds and Reimbursements .............................. 311,688 165,406 256,297 204,901 225,629 Contributions and Donations ............................. 233,850 95,257 102,550 33,400 24,303 Grants .................................................. 281,154 225,919 466,158 198,332 228,421 Other Income ............................................ 118,895 145,966 161,403 188,833 235,315 Total Revenues ........................................ $12,725,333 $12,277,109 $12,295,510 $12,606,110 $12,218,495 EXPENDITURES: General Administration .................................. $ 1,368,361 $ 1,314,144 $ 1,292,234 $ 1,511,873 $ 1,348,174 Police and Animal Control ............................... 5,477,245 5,602,517 5,777,695 6,307,021 6,340,136 Civil Defense ........................................... 11,760 17,189 0 0 0 Buildings, Planning and Development ..................... 1,538,513 1,397,385 948,167 661,361 518,534 Streets and Yard Waste .................................. 1,496,386 1,792,761 1,813,748 1,574,886 1,595,549 Public Works and Special Projects ....................... 428,406 494,491 241,177 195,652 178,679 Capital Outlay .......................................... 1,854,342 1,895,774 1,997,911 248,705 0 Total Expenditures .................................... $12,175,013 $12,514,261 $12,070,932 $10,499,498 $ 9,981,072 Excess (Deficiency) of Revenues Over (Under) Expenditures $ 550,320 $ (237,152) $ 224,578 $ 2,106,612 $ 2,237,423 OTHER FINANCING SOURCES (USES): Proceeds From Bond Issuance ............................. $ 0 $ 2,500,605 $ 855,684 $ 0 $ 0 Proceeds From Capital Lease ............................. 0 222,660 0 0 0 Proceeds From Sale of Capital Assets .................... 0 0 40,496 0 0 Operating Transfers In .................................. 0 404,095 245,170 185,976 179,330 Operating Transfers Out ................................. 0 (1,285,041) (371,536) (236,738) (717,576) Total Other Financing Sources (Uses) .................. $ 0 $ 1,842,319 $ 769,814 $ (50,762) $ (538,246) Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses ................. $ 550,320 $ 1,605,167 $ 994,392 $ 2,055,850 $ 1,699,177 Fund Balance-Beginning of Year ......................... 6,246,019 6,535,190 8,166,649 9,161,041 11,216,891 Prior Period Adjustment ................................ (261,149) 26,292 0 0 0 Fund Balance-End of Year ............................... $ 6,535,190 $ 8,166,649 $ 9,161,041 $11,216,891 $12,916,068
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Budget Financial Information(1)
Budgeted Interim Twelve Months Eleven Months Ending Ending 6/30/2013 5/31/2013
GENERAL FUND: REVENUES: Property Taxes ............................. $ 5,116,149 $4,312,909 Replacement Taxes .......................... 65,000 70,230 Municipal Sales Tax ........................ 2,725,000 1,910,023 State Income Tax ........................... 1,892,400 1,532,859 Licenses, Permits, Fees and Fines .......... 658,800 771,077 Interest Income ............................ 20,000 26,325 Governmental Grants ........................ 41,000 50,040 Rents/Fees ................................. 519,000 513,710 Miscellaneous .............................. 615,367 808,547 Total Revenues ........................... $11,652,716 $9,995,721 EXPENDITURES: Administration ............................. $ 1,651,371 $1,120,674 Commuter Lot ............................... 161,541 167,854 Police Department .......................... 6,408,529 5,842,989 Animal Control ............................. 50,600 27,180 Yard Waste ................................. 83,363 123,415 Planning ................................... 182,012 151,478 Building ................................... 467,568 317,353 Engineering ................................ 120,000 71,935 City Maintenance ........................... 105,652 87,987 Prime Blvd - PW Building ................... 56,500 104,573 Heritage and Culture ....................... 530 20 Street Department .......................... 2,002,927 1,482,167 ESDA ....................................... 36,583 27,063 Special Projects ........................... 2,284,041 23,328 Total Expenditures ....................... $13,611,217 $9,548,015 Note: (1) The City’s General Fund maintains a healthy fund balance moving into the 2014
Fiscal Year. In 2013 there was a planned drawdown of $1,958,501. This drawdown was included in a $2,273,041 transfer to the City’s Capital Projects Fund to allow for the completion of additional infrastructure projects. Over $8 million in Infrastructure expenditures were budgeted in Fiscal Year 2013, including: Road Reconstruction, Road Resurfacing, Sidewalk Improvements, and various other improvements. The City’s Fund Balance Policy for the General Fund states “the unrestricted fund balance should be maintained at 120 days (4 months) of estimated operating expenditures.” Even with this drawdown, the City exceeds its fund balance policy of 120 days of estimated operating expenditures.
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PENSION AND RETIREMENT OBLIGATIONS
The latest audited pension information is contained in APPENDIX A herein. The City contributes to two defined benefit pension plans: the Illinois Municipal Retirement Fund (IMRF), an
agent multiple-employer public employee retirement system and the Police Pension Plan which is a single-employer pension plan. The benefits, benefit levels, employee contributions and employer contributions for all plans are governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. None of the pensions plans issue separate reports on the pension plans. However, IMRF does issue a publicly available report that includes financial statements and supplementary information for the plan as a whole, but not for individuals.
In addition to providing the pension benefits above, the City provides postemployment health benefits (OPEB)
for retired employees through a single-employer defined benefit plan. The benefits, benefit levels, employee contributions and employer contributions are governed by the City and can be amended by the City through its personnel manual and union contracts. The plan does not issue a separate report.
REGISTRATION, TRANSFER AND EXCHANGE
See also APPENDIX B for information on registration, transfer and exchange of book-entry bonds. The Bonds will be initially issued as book-entry bonds.
The City shall cause books (the “Bond Register”) for the registration and for the transfer of the Bonds to be kept at the designated corporate trust office maintained for the purpose by the Bond Registrar in Chicago, Illinois. The City will authorize to be prepared, and the Bond Registrar shall keep custody of, multiple bond blanks executed by the City for use in the transfer and exchange of Bonds.
Any Bond may be transferred or exchanged, but only in the manner, subject to the limitations, and upon payment of the charges as set forth in the Bond Ordinance. Upon surrender for transfer or exchange of any Bond at the designated corporate trust office maintained for the purpose by the Bond Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Bond Registrar and duly executed by the registered owner or such owner’s attorney duly authorized in writing, the City shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the registered owner, transferee or transferees (as the case may be) a new fully registered Bond or Bonds of the same maturity and interest rate of authorized denominations, for a like aggregate principal amount.
The execution by the City of any fully registered Bond shall constitute full and due authorization of such Bond, and the Bond Registrar shall thereby be authorized to authenticate, date and deliver such Bond, provided, however, the principal amount of outstanding Bonds of each maturity authenticated by the Bond Registrar shall not exceed the authorized principal amount of Bonds for such maturity less Bonds previously paid. The Bond Registrar shall not be required to transfer or exchange any Bond from the fifteenth (15th) day (whether or not a business day) of the calendar month next preceding an interest payment date on such Bond (known as the record date) and ending on such interest payment date.
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The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of the principal of or interest on any Bonds shall be made only to or upon the order of the registered owner thereof or such owner’s legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid.
No service charge shall be made for any transfer or exchange of Bonds, but the City or the Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds except in the case of the issuance of a Bond or Bonds for the unredeemed portion of a bond surrendered for redemption.
TAX EXEMPTION
Federal tax law contains a number of requirements and restrictions which apply to the Bonds, including investment restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the proper use of bond proceeds and the facilities financed therewith, and certain other matters. The City has covenanted to comply with all requirements that must be satisfied in order for the interest on the Bonds to be excludable from gross income for federal income tax purposes. Failure to comply with certain of such covenants could cause interest on the Bonds to become includible in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds.
Subject to the City’s compliance with the above-referenced covenants, under present law, in the opinion of Bond Counsel, interest on the Bonds is excludable from the gross income of the owners thereof for federal income tax purposes, and is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations, but interest on the Bonds is taken into account, however, in computing an adjustment used in determining the federal alternative minimum tax for certain corporations.
In rendering its opinion, Bond Counsel will rely upon certifications of the City with respect to certain material facts within the City’s knowledge. Bond Counsel’s opinion represents its legal judgment based upon its review of the law and the facts that it deems relevant to render such opinion and is not a guarantee of a result.
The Internal Revenue Code of 1986, as amended (the “Code”), includes provisions for an alternative minimum tax (“AMT”) for corporations in addition to the corporate regular tax in certain cases. The AMT, if any, depends upon the corporation’s alternative minimum taxable income (“AMTI”), which is the corporation’s taxable income with certain adjustments. One of the adjustment items used in computing the AMTI of a corporation (with certain exceptions) is an amount equal to 75% of the excess of such corporation’s “adjusted current earnings” over an amount equal to its AMTI (before such adjustment item and the alternative tax net operating loss deduction). “Adjusted current earnings” would include certain tax-exempt interest, including interest on the Bonds.
Ownership of the Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, corporations subject to the branch profits tax, financial institutions, certain insurance companies, certain S corporations, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or continued) indebtedness to purchase or carry tax-exempt obligations. Prospective purchasers of the Bonds should consult their tax advisors as to applicability of any such collateral consequences.
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The issue price (the “Issue Price”) for each maturity of the Bonds is the price at which a substantial amount of such maturity of the Bonds is first sold to the public. The Issue Price of a maturity of the Bonds may be different from the price set forth, or the price corresponding to the yield set forth, on the cover page hereof.
If the Issue Price of a maturity of the Bonds is less than the principal amount payable at maturity, the difference between the Issue Price of each such maturity, if any, of the Bonds (the “OID Bonds”) and the principal amount payable at maturity is original issue discount.
For an investor who purchases an OID Bond in the initial public offering at the Issue Price for such maturity and who holds such OID Bond to its stated maturity, subject to the condition that the City complies with the covenants discussed above, (a) the full amount of original issue discount with respect to such OID Bond constitutes interest which is excludable from the gross income of the owner thereof for federal income tax purposes; (b) such owner will not realize taxable capital gain or market discount upon payment of such OID Bond at its stated maturity; (c) such original issue discount is not included as an item of tax preference in computing the alternative minimum tax for individuals and corporations under the Code, but is taken into account in computing an adjustment used in determining the alternative minimum tax for certain corporations under the Code, as described above; and (d) the accretion of original issue discount in each year may result in an alternative minimum tax liability for corporations or certain other collateral federal income tax consequences in each year even though a corresponding cash payment may not be received until a later year. Based upon the stated position of the Illinois Department of Revenue under Illinois income tax law, accreted original issue discount on such OID Bonds is subject to taxation as it accretes, even though there may not be a corresponding cash payment until a later year. Owners of OID Bonds should consult their own tax advisors with respect to the state and local tax consequences of original issue discount on such OID Bonds.
Owners of Bonds who dispose of Bonds prior to the stated maturity (whether by sale, redemption or otherwise), purchase Bonds in the initial public offering, but at a price different from the Issue Price or purchase Bonds subsequent to the initial public offering should consult their own tax advisors.
If a Bond is purchased at any time for a price that is less than the Bond’s issue price or, in the case of an OID Bond, its Issue Price plus accreted original issue discount (the “Revised Issue Price”), the purchaser will be treated as having purchased a Bond with market discount subject to the market discount rules of the Code (unless a statutory de minimis rule applies). Accrued market discount is treated as taxable ordinary income and is recognized when a Bond is disposed of (to the extent such accrued discount does not exceed gain realized) or, at the purchaser’s election, as it accrues. Such treatment would apply to any purchaser who purchases an OID Bond for a price that is less than its Revised Issue Price. The applicability of the market discount rules may adversely affect the liquidity or secondary market price of such Bond. Purchasers should consult their own tax advisors regarding the potential implications of market discount with respect to the Bonds.
An investor may purchase a Bond at a price in excess of its stated principal amount. Such excess is
characterized for federal income tax purposes as “bond premium” and must be amortized by an investor on a constant yield basis over the remaining term of the Bond in a manner that takes into account potential call dates and call prices. An investor cannot deduct amortized bond premium relating to a tax-exempt bond. The amortized bond premium is treated as a reduction in the tax-exempt interest received. As bond premium is amortized, it reduces the investor’s basis in the Bond. Investors who purchase a Bond at a premium should consult their own tax advisors regarding the amortization of bond premium and its effect on the Bond’s basis for purposes of computing gain or loss in connection with the sale, exchange, redemption or early retirement of the Bond.
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There are or may be pending in the Congress of the United States legislative proposals, including some that
carry retroactive effective dates, that, if enacted, could alter or amend the federal tax matters referred to above or affect the market value of the Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or whether, if enacted, it would apply to bonds issued prior to enactment. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal tax legislation. Bond Counsel expresses no opinion regarding any pending or proposed federal tax legislation.
The Internal Revenue Service (the “Service”) has an ongoing program of auditing tax-exempt obligations to determine whether, in the view of the Service, interest on such tax-exempt obligations is includible in the gross income of the owners thereof for federal income tax purposes. It cannot be predicted whether or not the Service will commence an audit of the Bonds. If an audit is commenced, under current procedures the Service may treat the City as a taxpayer and the Bondholders may have no right to participate in such procedure. The commencement of an audit could adversely affect the market value and liquidity of the Bonds until the audit is concluded, regardless of the ultimate outcome.
Payments of interest on, and proceeds of the sale, redemption or maturity of, tax-exempt obligations, including the Bonds, are in certain cases required to be reported to the Service. Additionally, backup withholding may apply to any such payments to any Bond owner who fails to provide an accurate Form W-9 Request for Taxpayer Identification Number and Certification, or a substantially identical form, or to any Bond owner who is notified by the Service of a failure to report any interest or dividends required to be shown on federal income tax returns. The reporting and backup withholding requirements do not affect the excludability of such interest from gross income for federal tax purposes.
Ownership of the Bonds may result in other federal, state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such collateral tax consequences arising with respect to the Bonds. Prospective purchasers of the Bonds should consult their tax advisors regarding the applicability of any such federal, state and local tax consequences.
Interest on the Bonds is not exempt from present State of Illinois income taxes.
QUALIFIED TAX-EXEMPT OBLIGATIONS Subject to the City’s compliance with certain covenants, in the opinion of Bond Counsel, the Bonds are
“qualified tax-exempt obligations” under the small issuer exception provided under Section 265(b)(3) of the Code, which affords banks and certain other financial institutions more favorable treatment of their deduction for interest expense than would otherwise be allowed under Section 265(b)(2) of the Code.
CONTINUING DISCLOSURE
The City will enter into a Continuing Disclosure Certificate and Agreement (the “Undertaking”) for the benefit of the registered owners and beneficial owners of the Bonds to send certain information annually and to provide notice of certain events to the Municipal Securities Rulemaking Board (the “MSRB”) pursuant to the requirements of Section (b)(5) of Rule 15c2-12 (the “Rule”) adopted by the Securities and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934. No person, other than the City, has undertaken, or is otherwise expected, to provide continuing disclosure with respect to the Bonds. The information to be provided on an annual basis, the events which will be noticed on an occurrence basis and a summary of other terms of the Undertaking, including termination, amendment and remedies, are set forth below under “THE UNDERTAKING.”
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The City has represented that it has not failed to comply in all material respects with each and every
undertaking previously entered into by it pursuant to the Rule. A failure by the City to comply with the Undertaking will not constitute a default under the Bond Ordinance and registered owners and beneficial owners of the Bonds are limited to the remedies described in the Undertaking. See “THE UNDERTAKING - Consequences of Failure of the City to Provide Information.” The City must report any failure to comply with the Undertaking in accordance with the Rule. Any broker, dealer or municipal securities dealer must consider such report before recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market price.
Bond Counsel expresses no opinion as to whether the Undertaking complies with the requirements of Section
(b)(5) of the Rule.
THE UNDERTAKING
The following is a brief summary of certain provisions of the Undertaking of the City and does not purport to be complete. The statements made under this caption are subject to the detailed provisions of the Undertaking, a copy of which is available upon request from the City.
Annual Financial Information Disclosure
The City covenants that it will disseminate its Annual Financial Information and its Audited Financial Statements, if any (as described below) to the MSRB in such manner and format and accompanied by identifying information as is prescribed by the MSRB or the Commission at the time of delivery of such information within 210 days after the last day of the City’s fiscal year (currently June 30). If Audited Financial Statements are not available when the Annual Financial Information is filed, the City will file unaudited financial statements. The City will submit Audited Financial Statements to the MSRB’s Electronic Municipal Market Access (“EMMA”) system within 30 days after availability to the City. MSRB Rule G-32 requires all EMMA filings to be in word-searchable PDF format. This requirement extends to all documents to be filed with EMMA, including financial statements and other externally prepared reports.
“Annual Financial Information” means:
1. The table under the heading of “Retailers’ Occupation, Service Occupation and Use Tax” within this Official Statement;
2. The table under the heading of “Historical State Income Tax Receipts” within this Official Statement;
3. The table under the heading of “Public Infrastructure Sales Tax” within this Official Statement;
4. All of the tables under the heading “PROPERTY ASSESSMENT AND TAX INFORMATION” within this Official Statement;
5. All of the tables under the heading “DEBT INFORMATION” within this Official Statement; and
6. All of the tables under the heading “FINANCIAL INFORMATION” within this Official Statement.
“Audited Financial Statements” means financial statements of the City as audited annually by independent
certified public accountants. Audited Financial Statements are expected to continue to be prepared according to Generally Accepted Accounting Principles as applicable to governmental units (i.e., as subject to the pronouncements of the Governmental Accounting Standards Board and subject to any express requirements of State law).
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Reportable Events Disclosure
The City covenants that it will disseminate in a timely manner (not in excess of ten business days after the occurrence of the Reportable Event) Reportable Events Disclosure to the MSRB in such manner and format and accompanied by identifying information as is prescribed by the MSRB or the Commission at the time of delivery of such information. MSRB Rule G-32 requires all EMMA filings to be in word-searchable PDF format. This requirement extends to all documents to be filed with EMMA, including financial statements and other externally prepared reports. The “Reportable Events” are:
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. Bond calls, if material, and tender offers 9. Defeasances 10. Release, substitution or sale of property securing repayment of the securities, if material 11. Rating changes 12. Bankruptcy, insolvency, receivership or similar event of the City * 13. 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
14. Appointment of a successor or additional trustee or the change of name of a trustee, if material. Consequences of Failure of the City to Provide Information
The City shall give notice in a timely manner to the MSRB of any failure to provide disclosure of Annual Financial Information and Audited Financial Statements when the same are due under the Undertaking.
In the event of a failure of the City to comply with any provision of the Undertaking, the registered owners and beneficial owner of any Bond may seek mandamus or specific performance by court order, to cause the City to comply with its obligations under the Undertaking. A default under the Undertaking shall not be deemed a default under the Bond Ordinance, and the sole remedy under the Undertaking in the event of any failure of the City to comply with the Undertaking shall be an action to compel performance. 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.
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Amendment; Waiver
Notwithstanding any other provision of the Undertaking, the City by resolution or ordinance authorizing such amendment or waiver, may amend the Undertaking, and any provision of the Undertaking may be waived, if:
(a) (i) The amendment or the waiver is made in connection with a change in circumstances that arises from a change in legal requirements, including, without limitation, pursuant to a “no-action” letter issued by the Commission, a change in law, or a change in the identity, nature, or status of the City, or type of business conducted; or
(ii) The Undertaking, as amended, or the provision, as waived, would have complied with the requirements of the Rule at the time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (b) The amendment or waiver does not materially impair the interests of the beneficial owners of the Bonds, as determined by parties unaffiliated with the City (such as Bond Counsel).
In the event that the Commission or the MSRB or other regulatory authority approves or requires Annual
Financial Information or notices of a Reportable Event to be filed with a central post office, governmental agency or similar entity other than the MSRB or in lieu of the MSRB, the City shall, if required, make such dissemination to such central post office, governmental agency or similar entity without the necessity of amending the Undertaking. Termination of Undertaking
The Undertaking shall be terminated if the City shall no longer have any legal liability for any obligation on or relating to repayment of the Bonds under the Bond Ordinance. The City shall give notice to the MSRB in a timely manner if this paragraph is applicable. Additional Information
Nothing in the Undertaking shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in the Undertaking or any other means of communication, or including any other information in any Annual Financial Information or Audited Financial Statements or notice of occurrence of a Reportable Event, in addition to that which is required by the Undertaking. If the City chooses to include any information from any document or notice of occurrence of a Reportable Event in addition to that which is specifically required by the Undertaking, the City shall have no obligation under the Undertaking to update such information or include it in any future disclosure or notice of occurrence of a Reportable Event. Dissemination of Information; Dissemination Agent
When filings are required to be made with the MSRB in accordance with the Undertaking, such filings are required to be made through its EMMA system for municipal securities disclosure or through any other electronic format or system prescribed by the MSRB for purposes of the Rule.
The City may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under the Undertaking, and may discharge any such Agent, with or without appointing a successor Dissemination Agent. The present Dissemination Agent is Mr. Erik Brown, Finance Director, City of Lockport, 222 East Ninth Street, Lockport, Illinois 60441; telephone (815) 838-0549.
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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.
CERTAIN LEGAL MATTERS
Certain legal matters incident to the authorization, issuance and sale of the Bonds are subject to the approving legal opinion of Evans, Froehlich, Beth & Chamley, Champaign, Illinois, as Bond Counsel (the “Bond Counsel”), who has been retained by, and acts as, Bond Counsel to the City. Bond Counsel has not been retained or consulted on disclosure matters and has not undertaken to review or verify the accuracy, completeness or sufficiency of this Official Statement or other offering material relating to the Bonds and assumes no responsibility for the statements or information contained in or incorporated by reference in this Official Statement, except that in its capacity as Bond Counsel, Evans, Froehlich, Beth & Chamley has, at the request of the City, reviewed only those sections of the Official Statement involving the description of the Bonds, the security for the Bonds (excluding forecasts, projections, estimates or any other financial or economic information in connection therewith) and the description of the federal tax exemption of interest on the Bonds. This review was undertaken solely at the request and for the benefit of the City and did not include any obligation to establish or confirm factual matters set forth herein.
OFFICIAL STATEMENT AUTHORIZATION
This Official Statement has been prepared 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 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: Standard & Poor’s Corporation, 55 Water Street, New York, New York 10041, telephone 212-438-2000.
City of Lockport, Will County, Illinois General Obligation Capital Appreciation Limited Bonds, Series 2013
36
DEFEASANCE
The Bonds are subject to legal defeasance by the irrevocable deposit of full faith and credit obligations of the United States of America, obligations the timely payment of which are guaranteed by the United States Treasury, or certificates of participation in a trust comprised solely of full faith and credit obligations of the United States of America (collectively, the “Government Obligations”) with a bank or trust company acting as escrow agent. Any such deposit must be of sufficient amount that the receipts from the Government Obligations plus any cash on deposit will be sufficient to pay debt service on the Bonds when due or as called for redemption.
UNDERWRITING
The Bonds were offered for sale by the City at a public, competitive sale on July 17, 2013. The best bid submitted at the sale was submitted by ____________________ (the “Underwriter”). The City awarded the contract for sale of the Bonds to the Underwriter at a price of $___________. The Underwriter has represented to the City that the Bonds have been subsequently re-offered to the public initially at the yields or prices set forth in the addendum to this 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 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 Official Statement, nor is the Financial Advisor obligated by the City’s continuing disclosure undertaking.
CERTIFICATION We have examined this Official Statement dated July 9, 2013, for the $1,492,900* General Obligation Capital Appreciation Limited Bonds, Series 2013, believe it to be true and correct and will provide to the purchaser of the Bonds at the time of delivery a certificate confirming to the purchaser 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/ STEVEN STREIT /s/ FRANK KOEHLER Mayor Interim City Administrator and City Planner CITY OF LOCKPORT CITY OF LOCKPORT Will County, Illinois Will County, Illinois *Subject to change.
APPENDIX A
CITY OF LOCKPORT, WILL COUNTY, ILLINOIS
EXCERPTS OF FISCAL YEAR 2012 AUDITED FINANCIAL STATEMENTS
Gover
nm
enta
l
Bu
sin
ess-
Typ
e
Act
ivit
ies
Act
ivit
ies
Tota
l
AS
SE
TS
Cas
h a
nd
cas
h e
qu
ival
ents
25
,52
7,4
07
$
8,9
67
,38
8$
34
,49
4,7
95
$
Rec
eivab
les
(net
, w
her
e ap
pli
cab
le,
of
al
low
ance
s fo
r u
nco
llec
tib
les)
Pro
per
ty t
axes
3,1
77
,34
8
-
3
,17
7,3
48
Sal
es t
ax1,1
24
,98
2
-
1
,12
4,9
82
Inco
me
tax
69
1,1
55
-
6
91
,15
5
Moto
r fu
el t
ax5
9,7
60
-
59
,76
0
Due
from
cu
stom
ers
-
1
,76
2,9
80
1
,76
2,9
80
Gra
nts
74
,08
2
-
7
4,0
82
Oth
er4
60
,28
7
7
3,4
54
5
33
,74
1
Due
from
oth
er g
over
nm
ents
23,4
65
1
27
,68
9
1
51
,15
4
Ad
van
ces
to/f
rom
oth
er f
un
ds
2,5
52
,08
4
(2,5
52
,08
4)
-
Inven
tory
2,9
75
41
,91
8
44
,89
3
Dep
osi
ts-
11
,92
5
11
,92
5
Pre
pai
d e
xp
ense
s2
10
,77
2
8
0,0
62
2
90
,83
4
Def
erre
d c
har
ges
14
0,0
04
-
1
40
,00
4
Cap
ital
ass
ets
not
bei
ng d
epre
ciat
ed2
4,8
23
,73
5
1
,14
3,2
76
2
5,9
67
,01
1
Cap
ital
ass
ets,
net
of
accu
mu
late
d d
epre
ciat
ion
72
,46
2,2
79
53
,87
5,6
44
12
6,3
37
,92
3
Tota
l as
sets
13
1,3
30
,33
5
63
,53
2,2
52
19
4,8
62
,58
7
LIA
BIL
ITIE
S
Acc
ou
nts
pay
able
96
1,1
70
84
5,5
88
1,8
06
,75
8
Ret
ain
age
pay
able
21
5,8
81
56
,22
9
27
2,1
10
Acc
rued
pay
roll
30
2,9
92
98
,43
6
40
1,4
28
Acc
rued
in
tere
st p
ayab
le3
8,2
73
1
04
,43
1
1
42
,70
4
Un
earn
ed r
even
ue
3,4
08
,44
4
27
7,0
92
3,6
85
,53
6
Du
e to
fid
uci
ary
fun
d5
,43
9
-
5,4
39
Due
to o
ther
gover
nm
ents
2,8
97
6,0
00
8,8
97
Oth
er l
iab
ilit
ies
51
1,9
99
51
,83
3
56
3,8
32
Non
curr
ent
liab
ilit
ies
Du
e w
ith
in o
ne
year
1,2
80
,34
5
92
1,4
92
2,2
01
,83
7
Du
e in
more
th
an o
ne
year
14
,25
8,2
57
12
,15
5,8
83
26
,41
4,1
40
Tota
l li
abil
itie
s2
0,9
85
,69
7
1
4,5
16
,98
4
3
5,5
02
,68
1
NE
T A
SS
ET
S
Inves
tmen
t in
cap
ital
ass
ets,
net
of
rela
ted
deb
t9
4,9
09
,84
4
4
2,2
51
,63
6
1
37
,16
1,4
80
Res
tric
ted
for
Deb
t se
rvic
e2
62
,15
4
-
26
2,1
54
Str
eets
an
d y
ard
was
te1,1
53
,73
7
-
1
,15
3,7
37
Oth
er p
urp
ose
s1,4
73
,62
2
-
1
,47
3,6
22
Un
rest
rict
ed1
2,5
45
,28
1
6
,76
3,6
32
1
9,3
08
,91
3
TO
TA
L N
ET
AS
SE
TS
110,3
44,6
38
$
4
9,0
15
,26
8$
1
59
,35
9,9
06
$
Pri
mar
y G
over
nm
ent
CIT
Y O
F L
OC
KP
OR
T,
ILL
INO
IS
ST
AT
EM
EN
T O
F N
ET
AS
SE
TS
Jun
e 3
0,
20
12
__
____
____
____
____
____
____
____
____
T
HIS
PA
GE
IN
TE
NT
ION
AL
LY
LE
FT
BL
AN
K
__
____
____
____
____
____
____
____
___
A-1
Op
erat
ing
Cap
ital
Ch
arges
Gra
nts
an
dG
ran
ts a
nd
FU
NC
TIO
NS
/PR
OG
RA
MS
Ex
pen
ses
for
Ser
vic
esC
ontr
ibuti
ons
Contr
ibuti
ons
PR
IMA
RY
GO
VE
RN
ME
NT
Gover
nm
enta
l A
ctiv
itie
s
Gen
eral
ad
min
istr
atio
n1
,37
7,1
22
$
8
82
,26
4$
15,0
00
$
-$
Poli
ce a
nd
an
imal
con
trol
6,6
29
,04
4
1,2
53
,75
0
32,8
04
-
Buil
din
gs,
pla
nnin
g a
nd d
evel
opm
ent
515,5
37
29
6,5
76
-
-
Str
eets
and y
ard w
aste
4,6
52,7
87
-
31,5
65
2,2
99,2
11
Pu
bli
c w
ork
s3
51
,70
0
3
37
,52
9
763,2
06
223,6
89
Inte
rest
79
,62
5
-
-
-
Tota
l gover
nm
enta
l ac
tivit
ies
13,6
05,8
15
2,7
70,1
19
842,5
75
2,5
22,9
00
Bu
sin
ess-
Typ
e A
ctiv
itie
s
Wat
erw
ork
s an
d s
ewer
age
5,8
30
,00
2
8,4
38
,78
4
92,0
51
864,0
00
Gar
bag
e1
,92
6,0
47
1
,93
1,6
22
-
-
Tota
l b
usi
nes
s-ty
pe
acti
vit
ies
7,7
56
,04
9
10
,37
0,4
06
92,0
51
864,0
00
TO
TA
L P
RIM
AR
Y G
OV
ER
NM
EN
T2
1,3
61
,86
4$
13,1
40,5
25
$
934,6
26
$
3,3
86,9
00
$
Pro
gra
m R
even
ues
CIT
Y O
F L
OC
KP
OR
T,
ILL
INO
IS
ST
AT
EM
EN
T O
F A
CT
IVIT
IES
For
the
Yea
r E
nd
ed J
un
e 3
0,
20
12
Gover
nm
enta
lB
usi
nes
s-T
yp
e
Act
ivit
ies
Act
ivit
ies
Tota
l
(47
9,8
58
)$
-$
(47
9,8
58
)$
(5,3
42
,49
0)
-
(5,3
42
,49
0)
(21
8,9
61
)
-
(21
8,9
61
)
(2,3
22
,01
1)
-
(2,3
22
,01
1)
972,7
24
-
972,7
24
(79
,62
5)
-
(79
,62
5)
(7,4
70
,22
1)
-
(7,4
70
,22
1)
-
3,5
64,8
33
3,5
64,8
33
-
5,5
75
5,5
75
-
3,5
70,4
08
3,5
70,4
08
(7,4
70
,22
1)
3,5
70,4
08
(3,8
99
,81
3)
Gen
eral
Rev
enu
es
Tax
es
Pro
per
ty
5,9
64
,23
8
-
5,9
64,2
38
Sal
es2
,84
6,6
72
-
2,8
46,6
72
Non
-hom
e ru
le s
ales
1,5
33
,46
5
-
1,5
33,4
65
Inco
me
2,1
20
,32
9
-
2,1
20,3
29
Per
son
al p
rop
erty
rep
lace
men
t6
9,8
34
-
69,8
34
Inves
tmen
t in
com
e39,3
12
26,8
61
66,1
73
Mis
cell
aneo
us
18
7,7
99
25,3
18
213,1
17
Tra
nsf
ers
17
8,8
17
(17
8,8
17
)
-
T
ota
l1
2,9
40
,46
6
(12
6,6
38
)
12,8
13,8
28
CH
AN
GE
IN
NE
T A
SS
ET
S5
,47
0,2
45
3,4
43,7
70
8,9
14,0
15
NE
T A
SS
ET
S, JU
LY
1104,8
74,3
93
45,5
71,4
98
150,4
45,8
91
NE
T A
SS
ET
S,
JUN
E 3
01
10
,34
4,6
38
$
49,0
15,2
68
$
159,3
59,9
06
$
Pri
mar
y G
over
nm
ent
Net
(E
xp
ense
) R
even
ue
and
Ch
ange
in N
et A
sset
s
A-2
Non
maj
or
Tota
l
Cap
ital
Gover
nm
enta
lG
over
nm
enta
l
Gen
eral
Pro
ject
sF
un
ds
Fu
nd
s
Cas
h a
nd
cas
h e
qu
ival
ents
9,2
91
,36
7$
12
,88
2,9
09
$
2,8
35
,05
1$
25
,00
9,3
27
$
Rec
eivab
les
(net
, w
her
e ap
pli
cable
,
of
allo
wan
ces
for
un
coll
ecti
ble
s)
Pro
per
ty t
axes
2,7
58
,52
5
-
41
8,8
23
3,1
77
,34
8
Sal
es t
ax7
21
,32
4
40
3,6
58
-
1,1
24
,98
2
Inco
me
tax
69
1,1
55
-
-
69
1,1
55
Moto
r fu
el t
ax-
-
59
,76
0
59
,76
0
Gra
nts
-
74
,08
2
-
74
,08
2
Oth
er2
84
,14
2
17
6,1
45
-
46
0,2
87
Du
e fr
om
oth
er f
un
ds
36
,58
9
-
-
36
,58
9
Du
e fr
om
oth
er g
over
nm
ents
23
,46
5
-
-
23
,46
5
Ad
van
ces
to o
ther
fu
nd
s2
,55
2,0
84
-
-
2,5
52
,08
4
Inven
tory
2,9
75
-
-
2,9
75
Pre
pai
d i
tem
s2
10
,77
2
-
-
21
0,7
72
TO
TA
L A
SS
ET
S1
6,5
72
,39
8$
13
,53
6,7
94
$
3,3
13
,63
4$
33
,42
2,8
26
$
LIA
BIL
ITIE
S
Acc
ou
nts
pay
able
30
4,0
43
$
51
0,5
02
$
14
6,6
25
$
96
1,1
70
$
Ret
ain
age
pay
able
-
9,0
77
20
6,8
04
21
5,8
81
Acc
rued
pay
roll
30
2,9
92
-
-
30
2,9
92
Acc
rued
in
tere
st p
ayab
le-
-
38
,27
3
38
,27
3
Def
erre
d r
even
ue
2,5
91
,85
7
42
5,0
00
39
1,5
87
3,4
08
,44
4
Du
e to
oth
er f
un
ds
-
-
36
,58
9
36
,58
9
Du
e to
fid
uci
ary
fun
ds
5,4
39
-
-
5,4
39
Du
e to
oth
er g
over
nm
ents
-
-
2,8
97
2,8
97
Oth
er l
iabil
itie
s4
51
,99
9
-
60
,00
0
51
1,9
99
Tota
l li
abil
itie
s3
,65
6,3
30
94
4,5
79
88
2,7
75
5,4
83
,68
4
FU
ND
BA
LA
NC
ES
Non
spen
dab
le
Pre
pai
d i
tem
s2
10
,77
2
-
-
21
0,7
72
Inven
tory
2,9
75
-
-
2,9
75
Ad
van
ces
2,5
52
,08
4
-
-
2,5
52
,08
4
Res
tric
ted
Forf
eitu
res
37
,02
9
-
-
37
,02
9
DU
I fu
nd
14
,24
0
-
-
14
,24
0
Fed
eral
ass
et s
eizu
res
31
1,2
10
-
-
31
1,2
10
Com
mu
ter
lot
29
2,6
94
-
-
29
2,6
94
Sto
rmw
ater
man
agem
ent
13
4,1
02
-
-
13
4,1
02
Str
eets
an
d y
ard
was
te-
-
1,1
53
,73
7
1,1
53
,73
7
Deb
t se
rvic
e-
-
26
2,1
54
26
2,1
54
Road
rep
airs
an
d i
mpro
vem
ents
39
5,0
53
10
,32
8,7
01
-
10
,72
3,7
54
Ass
ign
ed
Su
bse
qu
ent
bu
dget
1,9
58
,50
1
-
-
1,9
58
,50
1
Eco
nom
ic d
evel
opm
ent
55
6,6
47
-
-
55
6,6
47
Cap
ital
pro
ject
s-
-
1,0
66
,69
9
1,0
66
,69
9
Un
assi
gn
ed (
def
icit
)6
,45
0,7
61
2,2
63
,51
4
(51
,73
1)
8,6
62
,54
4
Tota
l fu
nd
bal
ance
s1
2,9
16
,06
8
12
,59
2,2
15
2,4
30
,85
9
27
,93
9,1
42
TO
TA
L L
IAB
ILIT
IES
AN
D F
UN
D B
AL
AN
CE
S1
6,5
72
,39
8$
13
,53
6,7
94
$
3,3
13
,63
4$
33
,42
2,8
26
$
AS
SE
TS
LIA
BIL
ITIE
S A
ND
FU
ND
BA
LA
NC
ES
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
BA
LA
NC
E S
HE
ET
GO
VE
RN
ME
NT
AL
FU
ND
S
Jun
e 3
0, 2
01
2
FU
ND
BA
LA
NC
ES
OF
GO
VE
RN
ME
NT
AL
FU
ND
S27,9
39,1
42
$
Am
ounts
rep
ort
ed f
or
gover
nm
enta
l ac
tivit
ies
in t
he
st
atem
ent
of
net
ass
ets
are
dif
fere
nt
bec
ause
:
Cap
ital
ass
ets
use
d i
n g
over
nm
enta
l ac
tivit
ies
are
not
finan
cial
res
ourc
es a
nd, th
eref
ore
, ar
e not
re
port
ed i
n t
he
gover
nm
enta
l fu
nds
97,2
86,0
14
Long-t
erm
lia
bil
itie
s, i
ncl
udin
g b
onds
pay
able
, ar
e
not
due
and p
ayab
le i
n t
he
curr
ent
yea
r an
d,
th
eref
ore
, ar
e not
report
ed i
n t
he
gover
nm
enta
l fu
nds
(13,2
84,7
87)
Def
erre
d c
har
ges
such
as
bond p
rem
ium
s an
d d
isco
unts
,
is
sue
cost
s an
d l
oss
es o
n r
efundin
gs
are
expen
dit
ure
s in
th
e gover
nm
enta
l fu
nds
but
show
n a
s an
ass
ets
on t
he
st
atem
ent
of
net
ass
ets
(289,8
89)
Net
pen
sion o
bli
gat
ion f
or
the
poli
ce p
ensi
on f
und
is
sh
ow
n a
s a
liab
ilit
y o
n t
he
stat
emen
t of
net
ass
ets
(636,0
01)
The
net
oth
er p
ost
emplo
ym
ent
ben
efit
obli
gat
ion i
s sh
ow
n
as
a l
iabil
ity o
n t
he
stat
emen
t of
net
ass
ets
(669,8
41)
NE
T A
SS
ET
S O
F G
OV
ER
NM
EN
TA
L A
CT
IVIT
IES
110,3
44,6
38
$
June
30, 2012
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
RE
CO
NC
ILIA
TIO
N O
F F
UN
D B
AL
AN
CE
S O
F G
OV
ER
NM
EN
TA
L F
UN
DS
TO
TH
E
GO
VE
RN
ME
NT
AL
AC
TIV
ITIE
S I
N T
HE
ST
AT
EM
EN
T O
F N
ET
AS
SE
TS
A-3
Nonm
ajor
Tota
l
Cap
ital
Gover
nm
enta
lG
over
nm
enta
l
Gen
eral
Pro
ject
sF
unds
Funds
RE
VE
NU
ES
Tax
es
Pro
per
ty l
evie
s, n
et5,1
56,5
35
$
347
$
8
07
,35
6$
5,9
64,2
38
$
Non-h
om
e ru
le-
1,5
33,4
65
-
1,5
33,4
65
Sal
es2,8
46,6
72
-
-
2,8
46,6
72
Inco
me
2,1
20,3
29
-
-
2,1
20,3
29
Moto
r fu
el-
-
7
58
,36
9
758,3
69
Per
sonal
pro
per
ty r
epla
cem
ent
69,8
34
-
-
69,8
34
Tel
ecom
munic
atio
ns
-
308,7
00
-
308,7
00
Lic
ense
s, p
erm
its
and i
nsp
ecti
ons
809,1
88
332,7
94
-
1,1
41,9
82
Fin
es, fo
rfei
ture
s an
d p
enal
ties
479,3
41
370,5
06
-
849,8
47
Ref
unds
and r
eim
burs
emen
ts225,6
29
-
-
225,6
29
Contr
ibuti
ons
and d
onat
ions
24,3
03
21,7
50
-
46,0
53
Gra
nts
22
8,4
21
103,6
89
124,8
37
456,9
47
Inves
tmen
t in
com
e22,9
28
8,4
96
7,8
88
39,3
12
Mis
cell
aneo
us
235,3
15
1,0
00
34
0
236,6
55
Tota
l re
ven
ues
12,2
18,4
95
2,6
80,7
47
1,6
98,7
90
16,5
98,0
32
EX
PE
ND
ITU
RE
S
Curr
ent
Gen
eral
adm
inis
trat
ion
1,3
48,1
74
-
-
1,3
48,1
74
Poli
ce a
nd a
nim
al c
ontr
ol
6,3
40,1
36
-
-
6,3
40,1
36
Buil
din
g, pla
nnin
g a
nd d
evel
opm
ent
518,5
34
-
-
518,5
34
Str
eets
and y
ard w
aste
1,5
95,5
49
-
1
97
,50
7
1,7
93,0
56
Publi
c w
ork
s178,6
79
-
5
6,5
85
235,2
64
Cap
ital
outl
ay-
1,3
45,7
49
183,8
90
1,5
29,6
39
Deb
t se
rvic
e
Pri
nci
pal
ret
irem
ent
-
100,0
00
670,0
00
770,0
00
Inte
rest
and f
isca
l ch
arges
-
122,3
35
95,0
23
217,3
58
Tota
l ex
pen
dit
ure
s9,9
81,0
72
1,5
68,0
84
1,2
03,0
05
12,7
52,1
61
EX
CE
SS
(D
EF
ICIE
NC
Y)
OF
RE
VE
NU
ES
O
VE
R E
XP
EN
DIT
UR
ES
2,2
37,4
23
1,1
12,6
63
495,7
85
3,8
45,8
71
OT
HE
R F
INA
NC
ING
SO
UR
CE
S (
US
ES
)
Tra
nsf
ers
in179,3
30
1,1
06,2
68
-
1,2
85,5
98
Tra
nsf
ers
(ou
t)(7
17
,57
6)
-
(3
89
,20
5)
(1,1
06
,78
1)
Issu
ance
of
bonds
-
9,7
50,0
00
-
9,7
50,0
00
Pre
miu
m o
n i
ssuan
ce o
f bonds
-
339,1
56
-
339,1
56
Tota
l oth
er f
inan
cin
g s
ou
rces
(u
ses)
(53
8,2
46
)
11,1
95,4
24
(38
9,2
05
)
10,2
67,9
73
NE
T C
HA
NG
E I
N F
UN
D B
AL
AN
CE
S1,6
99,1
77
12,3
08,0
87
106,5
80
14,1
13,8
44
FU
ND
BA
LA
NC
ES
, JU
LY
111,2
16,8
91
284,1
28
2,3
24,2
79
13,8
25,2
98
FU
ND
BA
LA
NC
ES
, JU
NE
30
12,9
16,0
68
$
12,5
92,2
15
$
2,4
30,8
59
$
27,9
39,1
42
$
For
the
Yea
r E
nded
June
30, 2012
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
ST
AT
EM
EN
T O
F R
EV
EN
UE
S, E
XP
EN
DIT
UR
ES
AN
D
CH
AN
GE
S I
N F
UN
D B
AL
AN
CE
S
GO
VE
RN
ME
NT
AL
FU
ND
S
NE
T C
HA
NG
E I
N F
UN
D B
AL
AN
CE
S -
T
OT
AL
GO
VE
RN
ME
NT
AL
FU
ND
S1
4,1
13
,84
4$
Am
ou
nts
rep
ort
ed f
or
go
ver
nm
enta
l ac
tivit
ies
in t
he
stat
emen
t o
f
ac
tivit
ies
are
dif
fere
nt
bec
ause
:
Go
ver
nm
enta
l fu
nd
s re
po
rt c
apit
al o
utl
ay a
s ex
pen
dit
ure
s; h
ow
ever
, th
ey a
re
ca
pit
aliz
ed a
nd
dep
reci
ated
in
th
e st
atem
ent
of
acti
vit
ies
88
5,4
14
Co
ntr
ibu
tio
ns
of
cap
ital
ass
ets
are
rep
ort
ed o
nly
in
th
e st
atem
ent
of
acti
vit
ies
2,2
99
,21
1
The
repay
men
t of
the
pri
nci
pal
port
ion o
f lo
ng-t
erm
deb
t is
rep
ort
ed a
s an
ex
pen
dit
ure
wh
en d
ue
in g
over
nm
enta
l fu
nd
s b
ut
as a
red
uct
ion
of
pri
nci
pal
o
uts
tan
din
g i
n t
he
stat
emen
t o
f ac
tivit
ies
77
0,0
00
Acc
reti
on
of
inte
rest
on
cap
ital
ap
pre
ciat
ion
bo
nd
s is
rep
ort
ed o
nly
in
th
e
st
atem
ent
of
acti
vit
ies
(24
,16
3)
Th
e is
suan
ce o
f lo
ng-t
erm
deb
t is
rep
ort
ed a
s an
oth
er f
inan
cin
g s
ou
rce
in
gover
nm
enta
l fu
nd
s, b
ut
as a
n i
ncr
ease
of
pri
nci
pal
ou
tsta
nd
ing i
n t
he
st
atem
ent
of
acti
vit
ies
(9,7
50
,00
0)
Go
ver
nm
enta
l fu
nd
s re
po
rt t
he
effe
ct o
f is
suan
ce c
ost
s, p
rem
ium
s, d
isco
un
ts
an
d s
imil
ar i
tem
s w
hen
deb
t is
fir
st i
ssu
ed,
wh
erea
s th
ese
amo
un
ts a
re
d
efer
red
an
d a
mo
rtiz
ed i
n t
he
stat
emen
t o
f ac
tivit
ies
(17
7,2
60
)
Ch
anges
in
th
e n
et p
ensi
on
ass
ets/
ob
ligat
ion
s ar
e re
po
rted
on
ly
in
th
e st
atem
ent
of
acti
vit
ies
(11
,85
0)
Th
e in
crea
se i
n n
et o
ther
po
stem
plo
ym
ent
ben
efit
s o
bli
gat
ion
is
rep
ort
ed a
s
an
ex
pen
se o
n t
he
stat
emen
t o
f ac
tivit
ies
(15
3,4
11
)
So
me
exp
ense
s in
th
e st
atem
ent
of
acti
vit
ies
do
no
t re
qu
ire
the
use
of
cu
rren
t fi
nan
cial
res
ou
rces
an
d,
ther
efo
re,
are
no
t re
po
rted
as
ex
pen
dit
ure
s in
gover
nm
enta
l fu
nd
s:
Dep
reci
atio
n(2
,48
1,5
40
)
CH
AN
GE
IN
NE
T A
SS
ET
S O
F G
OV
ER
NM
EN
TA
L A
CT
IVIT
IES
5,4
70,2
45
$
Fo
r th
e Y
ear
En
ded
Ju
ne
30
, 2
01
2
CIT
Y O
F L
OC
KP
OR
T,
ILL
INO
IS
RE
CO
NC
ILIA
TIO
N O
F T
HE
GO
VE
RN
ME
NT
AL
FU
ND
S S
TA
TE
ME
NT
OF
RE
VE
NU
ES
,
GO
VE
RN
ME
NT
AL
AC
TIV
ITIE
S I
N T
HE
ST
AT
EM
EN
T O
F A
CT
IVIT
IES
EX
PE
ND
ITU
RE
S A
ND
CH
AN
GE
S I
N F
UN
D B
AL
AN
CE
S T
O T
HE
A-4
Gover
nm
enta
l
Act
ivit
ies
Inte
rnal
Wat
erw
ork
sS
ervic
e
and S
ewer
age
Gar
bag
eT
ota
lF
und
CU
RR
EN
T A
SS
ET
S
Cas
h a
nd
cas
h e
qu
ival
ents
8,6
35
,40
2$
331,9
86
$
8,9
67
,38
8$
518,0
80
$
Rec
eivab
les
(net
wher
e ap
pli
cable
,
of
allo
wan
ces
for
unco
llec
tible
s)
Acc
ou
nts
1,5
60
,31
1
202,6
69
1,7
62
,98
0
-
Oth
er73,4
54
-
73
,45
4
-
Due
from
oth
er g
over
nm
ents
127,6
89
-
12
7,6
89
-
Inven
tory
41,9
18
-
41
,91
8
-
Dep
osi
ts11,9
25
-
11
,92
5
-
Pre
pai
d i
nsu
rance
80,0
62
-
80
,06
2
-
Tota
l cu
rren
t as
sets
10,5
30,7
61
534,6
55
11
,06
5,4
16
518,0
80
NO
NC
UR
RE
NT
AS
SE
TS
Cap
ital
ass
ets
Lan
d301,1
15
-
30
1,1
15
-
Const
ruct
ion i
n p
rogre
ss842,1
61
-
84
2,1
61
-
Infr
astr
uct
ure
55,6
20,8
38
-
55
,62
0,8
38
-
Bu
ild
ing
s an
d i
mp
rovem
ents
11
,98
0,5
49
-
11
,98
0,5
49
-
Veh
icle
s an
d e
quip
men
t811,5
22
-
81
1,5
22
-
Tota
l ca
pit
al a
sset
s6
9,5
56
,18
5
-
69
,55
6,1
85
-
Les
s ac
cum
ula
ted d
epre
ciat
ion
(14,5
37,2
65)
-
(14,5
37,2
65)
-
Net
cap
ital
ass
ets
55
,01
8,9
20
-
55
,01
8,9
20
-
Tota
l as
sets
65
,54
9,6
81
534,6
55
66
,08
4,3
36
518,0
80
CU
RR
EN
T L
IAB
ILIT
IES
Acc
ounts
pay
able
681,4
45
164,1
43
84
5,5
88
-
Ret
ain
age
pay
able
56
,22
9
-
56
,22
9
-
Acc
rued
pay
roll
98,4
36
-
98
,43
6
-
Com
pen
sate
d a
bse
nce
s108,6
65
-
10
8,6
65
-
Acc
rued
inte
rest
pay
able
104,4
31
-
10
4,4
31
-
Def
erre
d r
even
ue
113,7
47
163,3
45
27
7,0
92
-
Due
to o
ther
gover
nm
ents
6,0
00
-
6,0
00
-
Oth
er l
iabil
itie
s5
1,8
33
-
51
,83
3
-
Curr
ent
port
ion o
f lo
ng-t
erm
deb
t812,8
27
-
81
2,8
27
470,3
45
Tota
l cu
rren
t li
abil
itie
s2
,03
3,6
13
327,4
88
2,3
61
,10
1
470,3
45
NO
NC
UR
RE
NT
LIA
BIL
ITIE
S
Com
pen
sate
d a
bse
nce
s28,8
91
-
28
,89
1
-
Ad
van
ces
from
oth
er f
unds
2,5
52,0
84
-
2,5
52
,08
4
-
Net
oth
er p
ost
emp
loym
ent
ben
efit
ob
lig
atio
n1
72
,53
5
-
17
2,5
35
-
Long-t
erm
deb
t, l
ess
curr
ent
port
ion
11,9
54,4
57
-
11
,95
4,4
57
47,7
35
Tota
l n
on
curr
ent
liab
ilit
ies
14
,70
7,9
67
-
14
,70
7,9
67
47,7
35
Tota
l li
abil
itie
s1
6,7
41
,58
0
327,4
88
17
,06
9,0
68
518,0
80
NE
T A
SS
ET
S
Inves
ted
in
cap
ital
ass
ets,
net
of
rela
ted
deb
t4
2,2
51
,63
6
-
42
,25
1,6
36
-
Unre
stri
cted
6,5
56,4
65
207,1
67
6,7
63
,63
2
-
TO
TA
L N
ET
AS
SE
TS
48,8
08,1
01
$
207,1
67
$
49
,01
5,2
68
$
-$
Bu
sin
ess-
Typ
e A
ctiv
itie
s
CIT
Y O
F L
OC
KP
OR
T,
ILL
INO
IS
June
30, 2012
ST
AT
EM
EN
T O
F N
ET
AS
SE
TS
PR
OP
RIE
TA
RY
FU
ND
S
CIT
Y O
F L
OC
KP
OR
T,
ILL
INO
IS
ST
AT
EM
EN
T O
F R
EV
EN
UE
S,
EX
PE
NS
ES
AN
D
CH
AN
GE
S I
N F
UN
D N
ET
AS
SE
TS
PR
OP
RIE
TA
RY
FU
ND
S
Fo
r th
e Y
ear
En
ded
Ju
ne
30
, 2
01
2
Go
ver
nm
enta
l
Act
ivit
ies
Inte
rnal
Wat
erw
ork
sS
ervic
e
and
Sew
erag
eG
arb
age
To
tal
Fu
nd
OP
ER
AT
ING
RE
VE
NU
ES
Ch
arges
fo
r se
rvic
es8
,37
3,9
57
$
1
,93
1,6
22
$
1
0,3
05
,57
9$
4
0,3
21
$
Pen
alti
es a
nd
met
ers
64
,82
7
-
6
4,8
27
-
To
tal
op
erat
ing r
even
ues
8,4
38
,78
4
1,9
31
,62
2
10
,37
0,4
06
40
,32
1
OP
ER
AT
ING
EX
PE
NS
ES
Wat
er a
dm
inis
trat
ion
29
5,6
02
-
2
95
,60
2
-
Wat
er o
per
atio
ns
1,6
54
,83
6
-
1
,65
4,8
36
-
Sew
er o
per
atio
ns
2,4
55
,48
7
-
2
,45
5,4
87
-
Cap
ital
ou
tlay
85
,66
8
-
8
5,6
68
-
Gar
bag
e o
per
atio
ns
-
1
,92
6,0
47
1
,92
6,0
47
-
Per
son
nel
ser
vic
es-
-
-
40
,32
1
Dep
reci
atio
n
1,2
37
,00
5
-
1
,23
7,0
05
-
To
tal
op
erat
ing e
xp
ense
s5
,72
8,5
98
1
,92
6,0
47
7
,65
4,6
45
4
0,3
21
OP
ER
AT
ING
IN
CO
ME
2
,71
0,1
86
5
,57
5
2
,71
5,7
61
-
NO
NO
PE
RA
TIN
G R
EV
EN
UE
S (
EX
PE
NS
ES
)
Inte
rest
exp
ense
(34
0,4
04
)
-
(34
0,4
04
)
-
Inves
tmen
t in
com
e2
5,7
34
1
,12
7
2
6,8
61
-
Inte
rgo
ver
nm
enta
l in
com
e9
2,0
51
-
92
,05
1
-
Mis
cell
aneo
us
inco
me
25
,31
8
-
2
5,3
18
-
Tap
-on
fee
s2
39
,00
0
-
23
9,0
00
-
To
tal
no
no
per
atin
g r
even
ues
(ex
pen
ses)
41
,69
9
1,1
27
42
,82
6
-
INC
OM
E B
EF
OR
E T
RA
NS
FE
RS
A
ND
CO
NT
RIB
UT
ION
S2
,75
1,8
85
6
,70
2
2
,75
8,5
87
-
TR
AN
SF
ER
S (
OU
T)
(17
8,8
17
)
-
(17
8,8
17
)
-
CO
NT
RIB
UT
ION
S8
64
,00
0
-
86
4,0
00
-
CH
AN
GE
IN
NE
T A
SS
ET
S3
,43
7,0
68
6
,70
2
3
,44
3,7
70
-
NE
T A
SS
ET
S,
JUL
Y 1
45
,37
1,0
33
20
0,4
65
45
,57
1,4
98
-
NE
T A
SS
ET
S,
JUN
E 3
04
8,8
08
,10
1$
2
07
,16
7$
4
9,0
15
,26
8$
-
$
Bu
sin
ess-
Typ
e A
ctiv
itie
s
A-5
CIT
Y O
F L
OC
KP
OR
T,
ILL
INO
IS
ST
AT
EM
EN
T O
F C
AS
H F
LO
WS
PR
OP
RIE
TA
RY
FU
ND
S
Fo
r th
e Y
ear
En
ded
Ju
ne
30
, 2
01
2
Go
ver
nm
enta
l
Act
ivit
ies
Inte
rnal
Wat
erw
ork
sS
ervic
e
and
Sew
erag
eG
arb
age
To
tal
Fu
nd
CA
SH
FL
OW
S F
RO
M O
PE
RA
TIN
G A
CT
IVIT
IES
Rec
eip
ts f
rom
cu
sto
mer
an
d u
sers
8,0
81
,46
8$
1
,91
6,8
28
$
9,9
98
,29
6$
-
$
Rec
eip
ts f
rom
in
terf
un
d u
sers
-
-
-
4
0,3
21
Rec
eip
ts f
rom
mis
cell
aneo
us
reven
ues
25
,31
8
-
2
5,3
18
-
Pay
men
ts t
o e
mp
loyee
s(2
,10
3,6
14
)
-
(2,1
03
,61
4)
-
Pay
men
ts t
o s
up
pli
ers
(1,9
00
,11
6)
(2,0
59
,13
1)
(3,9
59
,24
7)
-
Net
cas
h f
rom
op
erat
ing a
ctiv
itie
s4
,10
3,0
56
(14
2,3
03
)
3,9
60
,75
3
4
0,3
21
CA
SH
FL
OW
S F
RO
M N
ON
CA
PIT
AL
F
INA
NC
ING
AC
TIV
ITIE
S
Inte
rgo
ver
nm
enta
l in
com
e3
3,8
72
-
33
,87
2
-
Tap
-on
fee
s2
39
,00
0
-
23
9,0
00
-
Tra
nsf
ers
to/f
rom
oth
er f
un
ds
(17
8,8
17
)
-
(1
78
,81
7)
-
Net
cas
h f
rom
no
nca
pit
al f
inan
cin
g a
ctiv
itie
s9
4,0
55
-
94
,05
5
-
CA
SH
FL
OW
S F
RO
M C
AP
ITA
L A
ND
RE
LA
TE
D
F
INA
NC
ING
AC
TIV
ITIE
S
Pu
rch
ases
an
d c
on
stru
ctio
n o
f ca
pit
al a
sset
s(9
26
,78
9)
-
(92
6,7
89
)
-
Pri
nci
pal
pai
d o
n l
on
g-t
erm
deb
t(7
86
,80
7)
-
(78
6,8
07
)
-
Inte
rest
pai
d o
n l
on
g-t
erm
deb
t(3
47
,97
8)
-
(34
7,9
78
)
-
Net
cas
h f
rom
cap
ital
an
d r
elat
ed
fin
anci
ng a
ctiv
itie
s(2
,06
1,5
74
)
-
(2,0
61
,57
4)
-
CA
SH
FL
OW
S F
RO
M I
NV
ES
TIN
G A
CT
IVIT
IES
Inves
tmen
t in
com
e re
ceiv
ed2
4,0
42
1
,12
7
2
5,1
69
-
Net
cas
h f
rom
in
ves
tin
g a
ctiv
itie
s2
4,0
42
1
,12
7
2
5,1
69
-
NE
T I
NC
RE
AS
E (
DE
CR
EA
SE
) IN
CA
SH
AN
D
C
AS
H E
QU
IVA
LE
NT
S2
,15
9,5
79
(14
1,1
76
)
2,0
18
,40
3
4
0,3
21
CA
SH
AN
D C
AS
H E
QU
IVA
LE
NT
S,
JUL
Y 1
6,4
75
,82
3
4
73
,16
2
6
,94
8,9
85
47
7,7
59
CA
SH
AN
D C
AS
H E
QU
IVA
LE
NT
S,
JUN
E 3
08
,63
5,4
02
$
33
1,9
86
$
8,9
67
,38
8$
5
18
,08
0$
Bu
sin
ess-
Typ
e A
ctiv
itie
s
CIT
Y O
F L
OC
KP
OR
T,
ILL
INO
IS
ST
AT
EM
EN
T O
F C
AS
H F
LO
WS
(C
on
tin
ued
)
PR
OP
RIE
TA
RY
FU
ND
S
Fo
r th
e Y
ear
En
ded
Ju
ne
30
, 2
01
2
Go
ver
nm
enta
l
Act
ivit
ies
Inte
rnal
Wat
erw
ork
sS
ervic
e
and
Sew
erag
eG
arb
age
To
tal
Fu
nd
RE
CO
NC
ILIA
TIO
N O
F O
PE
RA
TIN
G I
NC
OM
E
T
O N
ET
CA
SH
FL
OW
S F
RO
M
O
PE
RA
TIN
G A
CT
IVIT
IES
Op
erat
ing i
nco
me
2,7
10
,18
6$
5
,57
5$
2
,71
5,7
61
$
-$
Ad
just
men
ts t
o r
eco
nci
le o
per
atin
g i
nco
me
to
n
et c
ash
fro
m o
per
atin
g a
ctiv
itie
s
Dep
reci
atio
n1
,23
7,0
05
-
1
,23
7,0
05
-
Mis
cell
aneo
us
inco
me
25
,31
8
-
2
5,3
18
-
Chan
ges
in
ass
ets
and
lia
bil
itie
s
Acc
ounts
rec
eivab
le(4
19
,05
0)
(1
4,7
94
)
(4
33
,84
4)
-
Oth
er r
ecei
vab
les
61
,73
4
-
6
1,7
34
-
Dep
osi
ts2
,47
5
-
2,4
75
-
Inven
tory
13
,61
7
-
1
3,6
17
-
Pre
pai
d i
nsu
ran
ce(2
,91
6)
-
(2,9
16
)
-
Acc
ou
nts
pay
able
39
1,6
14
(14
4,0
49
)
24
7,5
65
-
Acc
rued
pay
roll
34
,01
3
-
3
4,0
13
-
Def
erre
d r
even
ue
-
1
0,9
65
1
0,9
65
-
Co
mp
ensa
ted
ab
sen
ces
(9,5
57
)
-
(9
,55
7)
4
0,3
21
Net
oth
er p
ost
emp
loym
ent
ben
efit
ob
ligat
ion
58
,61
7
-
5
8,6
17
-
NE
T C
AS
H F
RO
M O
PE
RA
TIN
G A
CT
IVIT
IES
4,1
03
,05
6$
(1
42
,30
3)
$
3
,96
0,7
53
$
40
,32
1$
NO
NC
AS
H C
AP
ITA
L A
ND
RE
LA
TE
D
F
INA
NC
ING
AC
TIV
ITIE
S
Dev
elo
per
co
ntr
ibu
tio
ns
86
4,0
00
$
-$
8
64
,00
0$
-
$
Bu
sin
ess-
Typ
e A
ctiv
itie
s
A-6
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
ST
AT
EM
EN
T O
F F
IDU
CIA
RY
NE
T A
SS
ET
S
FID
UC
IAR
Y F
UN
DS
June
30, 2012
Pen
sion T
rust
Poli
ce
Pen
sion
AS
SE
TS
Cas
h a
nd c
ash e
quiv
alen
ts9,4
60
$
Inves
tmen
ts, at
fai
r val
ue
Money
mar
ket
mutu
al f
unds
698,1
47
Mutu
al f
unds
5,9
37,3
07
U.S
. G
over
nm
ent
and a
gen
cy o
bli
gat
ions
6,3
54,2
99
Sta
te a
nd l
oca
l obli
gat
ions
306,7
76
Acc
rued
inte
rest
rec
eivab
le44,0
15
Due
from
pri
mar
y g
over
nm
ent
5,4
39
Tota
l as
sets
13,3
55,4
43
LIA
BIL
ITIE
S
Acc
ounts
pay
able
13,3
41
Tota
l li
abil
itie
s13,3
41
NE
T A
SS
ET
S H
EL
D I
N T
RU
ST
F
OR
PE
NS
ION
BE
NE
FIT
S13,3
42,1
02
$
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
ST
AT
EM
EN
T O
F C
HA
NG
ES
IN
FID
UC
IAR
Y N
ET
AS
SE
TS
PE
NS
ION
TR
US
T F
UN
D
Fo
r th
e Y
ear
En
ded
Ju
ne
30
, 2
01
2
Pen
sio
n T
rust
Po
lice
Pen
sio
n
AD
DIT
ION
S
Co
ntr
ibu
tio
ns
Em
plo
yer
7
47
,94
3$
Em
plo
yee
2
99
,21
1
To
tal
con
trib
uti
on
s1
,04
7,1
54
Inv
estm
ent
inco
me
Net
ap
pre
ciat
ion
in
fai
r
v
alu
e o
f in
ves
tmen
ts4
12
,87
1
Inte
rest
12
9,1
29
To
tal
inv
estm
ent
inco
me
54
2,0
00
Les
s in
ves
tmen
t ex
pen
se(5
4,1
95
)
Net
in
ves
tmen
t in
com
e 4
87
,80
5
To
tal
add
itio
ns
1,5
34
,95
9
DE
DU
CT
ION
S
Ret
irem
ent
and
dis
abil
ity b
enef
its
59
1,9
15
Ad
min
istr
ativ
e ex
pen
ses
22
,90
3
To
tal
ded
uct
ion
s6
14
,81
8
NE
T I
NC
RE
AS
E
92
0,1
41
NE
T A
SS
ET
S H
EL
D I
N T
RU
ST
F
OR
PE
NS
ION
BE
NE
FIT
S
July
11
2,4
21
,96
1
Jun
e 3
01
3,3
42
,10
2$
A-7
CIT
Y O
F L
OC
KP
OR
T,
ILL
INO
IS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
June
30, 2012
1.
SU
MM
AR
Y O
F S
IGN
IFIC
AN
T A
CC
OU
NT
ING
PO
LIC
IES
T
he
finan
cial
sta
tem
ents
of
the
Cit
y o
f L
ock
port
, Il
linois
(th
e C
ity)
hav
e bee
n p
repar
ed i
n
confo
rmit
y w
ith a
ccounti
ng p
rinci
ple
s gen
eral
ly a
ccep
ted i
n t
he
Unit
ed S
tate
s of
Am
eric
a
as a
ppli
ed t
o g
over
nm
ent
unit
s (h
erei
naf
ter
refe
rred
to a
s gen
eral
ly a
ccep
ted a
ccounti
ng
pri
nci
ple
s (G
AA
P))
. T
he
Gover
nm
enta
l A
ccounti
ng S
tandar
ds
Boar
d (
GA
SB
) is
the
acce
pte
d s
tandar
d-s
etti
ng b
ody f
or
esta
bli
shin
g g
over
nm
enta
l ac
counti
ng a
nd f
inan
cial
repo
rting
prin
cipl
es.
The
mor
e si
gnifi
cant
of t
he C
ity’s
acc
ount
ing
polic
ies a
re d
escr
ibed
bel
ow
.
a.
R
eport
ing E
nti
ty
The
Cit
y, a
non-h
om
e ru
le c
ity, w
as f
ounded
in 1
830.
The
Cit
y i
s gover
ned
by a
may
or-
counci
l fo
rm o
f gover
nm
ent.
A
s re
quir
ed b
y g
ener
ally
acc
epte
d a
ccounti
ng
pri
nci
ple
s, t
hes
e fi
nan
cial
sta
tem
ents
pre
sent
the
Cit
y (
the
pri
mar
y gover
nm
ent)
and
its
com
ponen
t unit
s.
In e
val
uat
ing h
ow
to d
efin
e th
e re
port
ing e
nti
ty, m
anag
emen
t
has
consi
der
ed a
ll p
ote
nti
al c
om
ponen
t unit
s. T
he
dec
isio
n t
o i
ncl
ude
a pote
nti
al
com
ponen
t unit
in t
he
report
ing e
nti
ty w
as b
ased
upon t
he
signif
ican
ce o
f it
s
oper
atio
nal
or
finan
cial
rel
atio
nsh
ip w
ith t
he
pri
mar
y gover
nm
ent.
A
ble
nded
com
ponen
t unit
, al
though l
egal
ly se
para
te, i
s in
subs
tanc
e, p
art o
f the
City
’s
oper
atio
ns
and s
o d
ata
from
this
unit
is
com
bin
ed w
ith t
he
dat
a of
the
pri
mar
y
gover
nm
ent.
A
dis
cret
ely p
rese
nte
d c
om
ponen
t unit
, on t
he
oth
er h
and, is
rep
ort
ed i
n
a se
par
ate
colu
mn o
n t
he
gover
nm
ent-
wid
e fi
nan
cial
sta
tem
ents
to e
mphas
ize
it i
s
legal
ly s
epar
ate
fro
m t
he
Cit
y.
Ble
nd
ed C
om
po
nen
t U
nit
The
City
’s fi
nanc
ial s
tate
men
ts in
clud
e th
e Po
lice
Pens
ion
Syst
em (P
PS) a
s a
Pens
ion
Trus
t Fun
d. T
he C
ity’s
swor
n po
lice
empl
oyee
s par
ticip
ate
in P
PS.
PPS
funct
ions
for
the
ben
efit
of
those
em
plo
yee
s an
d i
s gover
ned
by a
fiv
e-m
ember
Pen
sion B
oar
d. T
wo m
ember
s ap
poin
ted b
y t
he
May
or,
one
elec
ted p
ensi
on
ben
efic
iary
and t
wo e
lect
ed p
oli
ce o
ffic
ers
const
itute
the
Pen
sion B
oar
d.
The
Cit
y
and
PP
S p
arti
cip
ants
are
ob
ligat
ed t
o f
un
d a
ll P
PS
co
sts
bas
ed u
po
n a
ctu
aria
l
val
uat
ion
s.
Th
e S
tate
of
Illi
no
is i
s au
thori
zed t
o e
stab
lish
ben
efit
lev
els
and t
he
Cit
y
is a
uth
ori
zed t
o a
ppro
ve
the
actu
aria
l as
sum
pti
ons
use
d i
n t
he
det
erm
inat
ion o
f th
e
con
trib
uti
on
lev
els.
P
PS
is r
epor
ted
as a
pen
sion
trus
t fun
d be
caus
e of
the
City
’s
fiduci
ary r
esponsi
bil
ity. S
epar
ate
finan
cial
sta
tem
ents
are
not
avai
lable
for
PP
S.
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
1.
SU
MM
AR
Y O
F S
IGN
IFIC
AN
T A
CC
OU
NT
ING
PO
LIC
IES
(C
onti
nued
)
a.
R
epo
rtin
g E
nti
ty (
Co
nti
nu
ed)
Po
ten
tial
Co
mp
on
ent
Un
its
The
Cit
y h
as e
xcl
uded
the
Bonnie
Bra
e F
ore
st M
anor
San
itar
y D
istr
ict
and t
he
Lock
port
Hei
ghts
San
itar
y D
istr
ict
from
the
City
’s re
porti
ng e
ntity
as t
he D
istri
cts a
re
not
fisc
ally
dep
enden
t on t
he
Cit
y a
nd d
o n
ot
pro
vid
e a
finan
cial
ben
efit
or
bu
rden
on
the
Cit
y. T
he
Cit
y a
nd t
he
two s
anit
ary
dis
tric
ts e
nte
red i
nto
an i
nte
rgover
nm
enta
l
agre
emen
t on A
ugust
16, 2000, under
whic
h t
he
Cit
y a
ssum
ed d
ay-t
o-d
ay o
per
atio
n
of
the
two s
anit
ary
dis
tric
ts;
how
ever
, th
e D
istr
icts
are
gover
ned
by t
hei
r ow
n
separ
ate
Bo
ards.
b.
Fund A
ccounti
ng
Th
e C
ity u
ses
fun
ds
to r
epo
rt o
n i
ts f
inan
cial
posi
tion a
nd t
he
chan
ges
in i
ts f
inan
cial
posi
tion. F
und a
ccounti
ng i
s des
igned
to d
emonst
rate
leg
al c
om
pli
ance
and t
o a
id
finan
cial
man
agem
ent
by s
egre
gat
ing t
ransa
ctio
ns
rela
ted t
o c
erta
in c
ity f
unct
ions
or
acti
vit
ies.
A
fund i
s a
separ
ate
acco
unti
ng e
nti
ty w
ith a
sel
f-bal
anci
ng s
et o
f
acco
unts
.
Funds
are
clas
sifi
ed i
nto
the
foll
ow
ing c
ateg
ori
es:
gover
nm
enta
l, p
ropri
etar
y a
nd
fiduci
ary.
Gover
nm
enta
l fu
nds
are
use
d t
o a
ccount
for
all
or
most
of
a C
ity’s
gen
eral
act
iviti
es,
incl
udin
g t
he
coll
ecti
on a
nd d
isburs
emen
t of
rest
rict
ed o
r co
mm
itte
d m
onie
s (s
pec
ial
reven
ue
funds)
, th
e fu
nds
com
mit
ted, re
stri
cted
or
assi
gned
for
the
acquis
itio
n o
r
const
ruct
ion o
f ca
pit
al a
sset
s (c
apit
al p
roje
cts
funds)
, th
e fu
nds
com
mit
ted,
rest
rict
ed
or
assi
gned
for
the
serv
icin
g o
f lo
ng-t
erm
deb
t (d
ebt
serv
ice
funds)
and t
he
man
agem
ent
of
funds
hel
d i
n t
rust
wher
e th
e in
tere
st e
arnin
gs
can b
e use
d f
or
gover
nm
enta
l se
rvic
es (
per
man
ent
fund).
T
he
gen
eral
fund i
s use
d t
o a
ccount
for
all
acti
vit
ies
of
the
gen
eral
gover
nm
ent
not
acco
unte
d f
or
in s
om
e oth
er f
und.
Pro
pri
etar
y fu
nds
are
use
d t
o a
ccount
for
acti
vit
ies
sim
ilar
to t
hose
found i
n t
he
pri
vat
e se
ctor,
wher
e th
e det
erm
inat
ion o
f net
inco
me
is n
eces
sary
or
use
ful
to s
ound
finan
cial
adm
inis
trat
ion. G
oods
or
serv
ices
fro
m s
uch
act
ivit
ies
can b
e pro
vid
ed
eith
er t
o o
uts
ide
par
ties
(en
terp
rise
funds)
or
to o
ther
dep
artm
ents
or
agen
cies
pri
mar
ily w
ith
in t
he
Cit
y (
inte
rnal
ser
vic
e fu
nd
s).
Pu
rsu
ant
to G
AS
B S
tate
men
t
No. 20, Ac
coun
ting
and
Fina
ncia
l Rep
ortin
g fo
r Pro
prie
tary
Fun
ds, th
e C
ity h
as
chose
n t
o a
pply
all
GA
SB
pro
nounce
men
ts a
s w
ell
as t
hose
FA
SB
pro
nounce
men
ts
issu
ed o
n o
r bef
ore
Novem
ber
30, 1989 t
o a
ccount
for
its
ente
rpri
se f
unds.
A-8
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
1.
SU
MM
AR
Y O
F S
IGN
IFIC
AN
T A
CC
OU
NT
ING
PO
LIC
IES
(C
onti
nued
)
b
. F
un
d A
cco
un
tin
g (
Co
nti
nu
ed)
Fid
uci
ary
funds
are
use
d t
o a
ccount
for
asse
ts h
eld o
n b
ehal
f of
outs
ide
par
ties
,
incl
udin
g o
ther
gover
nm
ents
, or
on b
ehal
f of
oth
er f
unds
wit
hin
th
e C
ity.
Th
e C
ity
uti
lize
s pen
sion t
rust
funds
and a
gen
cy f
unds
whic
h a
re g
ener
ally
use
d t
o a
ccount
for
asse
ts t
hat
the
Cit
y h
old
s in
a f
iduci
ary
capac
ity.
c.
G
over
nm
ent-
Wid
e an
d F
und F
inan
cial
Sta
tem
ents
The
gover
nm
ent-
wid
e fi
nan
cial
sta
tem
ents
(i.
e., th
e st
atem
ent
of
net
ass
ets
and t
he
stat
emen
t of
acti
vit
ies)
rep
ort
info
rmat
ion o
n a
ll o
f th
e nonfi
duci
ary
acti
vit
ies
of
the
Cit
y. T
he
effe
ct o
f m
ater
ial
inte
rfund a
ctiv
ity
has
bee
n e
lim
inat
ed f
rom
thes
e
stat
emen
ts. T
he
cost
s fo
r in
terf
und s
ervic
es p
rovid
ed/u
sed b
etw
een f
unds
are
not
elim
inat
ed i
n t
he
pro
cess
of
the
conso
lidat
ion. G
over
nm
enta
l ac
tivit
ies,
whic
h
norm
ally
are
support
ed b
y ta
xes
and i
nte
rgover
nm
enta
l re
ven
ues
, ar
e re
port
ed
separ
atel
y fr
om
busi
nes
s-ty
pe
acti
vit
ies,
whic
h r
ely
to a
sig
nif
ican
t ex
tent
on f
ees
and
char
ges
for
support
.
The
stat
emen
t of
acti
vit
ies
dem
onst
rate
s th
e deg
ree
to w
hic
h t
he
dir
ect
expen
ses
of
a
giv
en f
unct
ion, se
gm
ent
or
pro
gra
m a
re o
ffse
t by
pro
gra
m r
even
ues
. D
irec
t ex
pen
ses
are
those
that
are
cle
arly
iden
tifi
able
wit
h a
spec
ific
funct
ion o
r se
gm
ent.
P
rogra
m
reven
ues
incl
ude
(1)
char
ges
to c
ust
om
ers
or
appli
cants
who p
urc
has
e, u
se o
r dir
ectl
y
ben
efit
fro
m g
oods,
ser
vic
es o
r pri
vil
eges
pro
vid
ed b
y a
giv
en f
unct
ion o
r se
gm
ent
and
(2)
gra
nts
and s
har
ed r
even
ues
that
are
res
tric
ted t
o m
eeti
ng t
he
oper
atio
nal
or
capit
al
requir
emen
ts o
f a
par
ticu
lar
funct
ion o
r se
gm
ent.
T
axes
and o
ther
ite
ms
not
pro
per
ly
incl
uded
am
ong p
rogra
m r
even
ues
are
rep
ort
ed i
nst
ead a
s gen
eral
rev
enues
.
Sep
arat
e fi
nan
cial
sta
tem
ents
are
pro
vid
ed f
or
gover
nm
enta
l fu
nds,
pro
pri
etar
y fu
nds
and f
iduci
ary
funds,
even
though t
he
latt
er a
re e
xcl
uded
fro
m t
he
gover
nm
ent-
wid
e
finan
cial
sta
tem
ents
. M
ajor
indiv
idual
gover
nm
enta
l fu
nds
and m
ajor
indiv
idual
ente
rpri
se f
unds
are
report
ed a
s se
par
ate
colu
mns
in t
he
fund f
inan
cial
sta
tem
ents
.
The
Cit
y re
port
s th
e fo
llow
ing m
ajor
gover
nm
enta
l fu
nd:
Th
e G
ener
al F
und
is th
e Ci
ty’s
prim
ary
oper
atin
g fu
nd.
It ac
coun
ts fo
r all
finan
cial
res
ourc
es o
f th
e gen
eral
gover
nm
ent
exce
pt
those
acc
ounte
d f
or
in
anoth
er f
und.
The
Cap
ital
Pro
ject
s F
und a
ccounts
for
var
ious
capit
al p
roje
cts
that
the
Cit
y
funds
wit
h v
ario
us
rest
rict
ed, co
mm
itte
d a
nd a
ssig
ned
rev
enues
.
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
1.
SU
MM
AR
Y O
F S
IGN
IFIC
AN
T A
CC
OU
NT
ING
PO
LIC
IES
(C
onti
nued
)
c.
G
over
nm
ent-
Wid
e an
d F
und F
inan
cial
Sta
tem
ents
(C
onti
nued
)
The
Cit
y re
port
s th
e fo
llow
ing m
ajor
pro
pri
etar
y fu
nd:
T
he
Wat
erw
ork
s an
d S
ewer
age
Fund, an
ente
rpri
se f
und, is
com
pri
sed o
f th
ree
subfu
nds.
T
he
subfu
nds
acco
unt
for
the
pro
vis
ion o
f w
ater
and s
ewer
ser
vic
es t
o
the
resi
den
ts o
f th
e C
ity.
A
ll a
ctiv
itie
s nec
essa
ry t
o p
rovid
e su
ch s
ervic
es a
re
acco
unte
d f
or
in t
hes
e su
bfu
nds
incl
udin
g, but
not
lim
ited
to, ad
min
istr
atio
n,
oper
atio
n, m
ainte
nan
ce, fi
nan
cing a
nd r
elat
ed d
ebt
serv
ice
and b
illi
ng a
nd
coll
ecti
on.
T
he
Gar
bag
e F
und, an
ente
rpri
se f
und, ac
counts
for
the
pro
vis
ion o
f so
lid w
aste
dis
posa
l se
rvic
es t
o t
he
resi
den
ts o
f th
e C
ity.
Addit
ional
ly, th
e C
ity
report
s th
e fo
llow
ing p
ropri
etar
y fu
nd:
T
he
Inte
rnal
Ser
vic
e F
und
acco
unts
for t
he C
ity’s
em
ploy
ee b
enef
its, i
nclu
ding
vac
atio
n a
nd s
ick l
eave
pro
vid
ed t
o o
ther
dep
artm
ents
of
the
Cit
y on a
cost
reim
burs
emen
t bas
is. T
hes
e ar
e re
port
ed a
s par
t of
the
gover
nm
enta
l ac
tivit
ies
on t
he
gover
nm
ent-
wid
e fi
nan
cial
sta
tem
ents
as
the
fund p
rovid
es t
hes
e se
rvic
es
to th
e C
ity’s
gov
ernm
enta
l fun
ds/
acti
vit
ies.
The
Cit
y re
port
s th
e fo
llow
ing f
iduci
ary
fund:
The
Poli
ce P
ensi
on F
und, a
Pen
sion T
rust
Fund, is
use
d t
o a
ccum
ula
te r
esourc
es
for
pen
sion b
enef
it p
aym
ents
to q
ual
ifie
d p
oli
ce p
erso
nnel
.
d.
Mea
sure
men
t F
ocu
s, B
asis
of
Acc
ounti
ng a
nd F
inan
cial
Sta
tem
ent
Pre
senta
tion
The
gover
nm
ent-
wid
e fi
nan
cial
sta
tem
ents
are
rep
ort
ed u
sing t
he
econom
ic r
esourc
es
mea
sure
men
t fo
cus
and t
he
accr
ual
bas
is o
f ac
counti
ng, as
are
the
pro
pri
etar
y fu
nd a
nd
fiduci
ary
fund f
inan
cial
sta
tem
ents
. R
even
ues
and a
ddit
ions
are
reco
rded
when
ear
ned
and e
xpen
ses
and d
educt
ions
are
reco
rded
when
a l
iabil
ity
is i
ncu
rred
. P
roper
ty t
axes
are
reco
gniz
ed a
s re
ven
ues
in t
he
year
for
whic
h t
hey
are
lev
ied (
i.e.
, in
tended
to
finan
ce).
G
rants
and s
imil
ar i
tem
s ar
e re
cogniz
ed a
s re
ven
ue
as s
oon a
s al
l el
igib
ilit
y
requir
emen
ts i
mpose
d b
y th
e pro
vid
er h
ave
bee
n m
et. O
per
atin
g r
even
ues
/expen
ses
incl
ude
all
reven
ues
/ex
pen
ses
dir
ectl
y re
late
d t
o p
rovid
ing e
nte
rpri
se f
und s
ervic
es.
Inci
den
tal
reven
ues
/ex
pen
ses
are
report
ed a
s nonoper
atin
g.
A-9
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
1.
SU
MM
AR
Y O
F S
IGN
IFIC
AN
T A
CC
OU
NT
ING
PO
LIC
IES
(C
onti
nued
)
d.
Mea
sure
men
t F
ocu
s, B
asis
of
Acc
ounti
ng a
nd F
inan
cial
Sta
tem
ent
Pre
senta
tion
(C
onti
nued
)
Gover
nm
enta
l fu
nd f
inan
cial
sta
tem
ents
are
rep
ort
ed u
sing t
he
curr
ent
finan
cial
reso
urc
es m
easu
rem
ent
focu
s an
d t
he
modif
ied a
ccru
al b
asis
of
acco
unti
ng. R
even
ues
are
reco
gniz
ed a
s so
on a
s th
ey a
re b
oth
“m
easu
rable
” an
d “
avai
lable
.” R
even
ues
are
consi
der
ed t
o b
e av
aila
ble
when
they
are
coll
ecti
ble
wit
hin
the
curr
ent
per
iod o
r so
on
enough t
her
eaft
er t
o p
ay l
iabil
itie
s of
the
curr
ent
per
iod. T
he
Cit
y co
nsi
der
s re
ven
ues
to b
e av
aila
ble
if
they
are
coll
ecte
d w
ithin
60 d
ays
of
the
end o
f th
e cu
rren
t fi
scal
per
iod, ex
cept
for
sale
s ta
xes
, te
leco
mm
unic
atio
n t
axes
, an
d i
nco
me
tax
es w
hic
h u
se a
90 t
o 1
20 d
ay p
erio
d. E
xpen
dit
ure
s gen
eral
ly a
re r
ecord
ed w
hen
a f
und l
iabil
ity
is
incu
rred
. H
ow
ever
, deb
t se
rvic
e ex
pen
dit
ure
s ar
e re
cord
ed o
nly
when
pay
men
t is
due,
unle
ss d
ue
the
firs
t day
of
the
foll
ow
ing f
isca
l ye
ar.
Pro
per
ty t
axes
, sa
les
taxes
and t
elec
om
munic
atio
n t
axes
ow
ed t
o t
he
stat
e at
yea
r en
d,
uti
lity
tax
es, fr
anch
ise
tax
es, li
cense
s, c
har
ges
for
serv
ices
and i
nte
rest
ass
oci
ated
wit
h
the
curr
ent
fisc
al p
erio
d a
re a
ll c
onsi
der
ed t
o b
e su
scep
tible
to a
ccru
al a
nd a
re
reco
gniz
ed a
s re
ven
ues
of
the
curr
ent
fisc
al p
erio
d. F
ines
and p
erm
it r
even
ue
are
consi
der
ed t
o b
e m
easu
rable
and a
vai
lable
only
when
cas
h i
s re
ceiv
ed b
y th
e C
ity.
In a
pply
ing t
he
susc
epti
ble
to a
ccru
al c
once
pt
to i
nte
rgover
nm
enta
l re
ven
ues
(i.
e.,
feder
al a
nd s
tate
gra
nts
), t
he
legal
and c
ontr
actu
al r
equir
emen
ts o
f th
e num
erous
indiv
idual
pro
gra
ms
are
use
d a
s guid
ance
. T
her
e ar
e, h
ow
ever
, es
senti
ally
tw
o t
ypes
of
thes
e re
ven
ues
. I
n o
ne,
monie
s m
ust
be
expen
ded
on t
he
spec
ific
purp
ose
or
pro
ject
bef
ore
any a
mounts
wil
l be
pai
d t
o t
he
Cit
y;
ther
efore
, re
ven
ues
are
reco
gniz
ed b
ased
upon t
he
expen
dit
ure
s re
cord
ed. I
n t
he
oth
er, m
onie
s ar
e vir
tual
ly
unre
stri
cted
as
to p
urp
ose
of
expen
dit
ure
and a
re g
ener
ally
rev
oca
ble
only
for
fail
ure
to c
om
ply
wit
h p
resc
ribed
eli
gib
ilit
y r
equir
emen
ts, su
ch a
s eq
ual
em
plo
ym
ent
opport
unit
y. T
hes
e re
sourc
es a
re r
efle
cted
as
reven
ues
at
the
tim
e of
rece
ipt
or
earl
ier
if t
hey
mee
t th
e av
aila
bil
ity c
rite
rion.
The
Cit
y r
eport
s def
erre
d/u
nea
rned
rev
enue
on i
ts f
inan
cial
sta
tem
ents
.
Def
erre
d/u
nea
rned
rev
enues
ari
se w
hen
a p
ote
nti
al r
even
ue
does
not
mee
t both
the
mea
sura
ble
and a
vai
lable
or
earn
ed c
rite
ria
for
reco
gnit
ion i
n t
he
curr
ent
per
iod.
Def
erre
d/u
nea
rned
rev
enues
als
o a
rise
when
res
ourc
es a
re r
ecei
ved
by t
he
Cit
y b
efore
it h
as a
leg
al c
laim
to t
hem
or
pri
or
to t
he
pro
vis
ion o
f se
rvic
es, as
when
gra
nt
monie
s ar
e re
ceiv
ed p
rior
to t
he
incu
rren
ce o
f qual
ifyi
ng e
xpen
dit
ure
s.
In s
ubse
quen
t
per
iods,
when
both
rev
enue
reco
gnit
ion c
rite
ria
are
met
, or
when
the
Cit
y h
as a
leg
al
clai
m t
o t
he
reso
urc
es, th
e li
abil
ity f
or
def
erre
d/u
nea
rned
rev
enue
is r
emoved
fro
m
the
finan
cial
sta
tem
ents
and r
even
ue
is r
ecogniz
ed.
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
1.
SU
MM
AR
Y O
F S
IGN
IFIC
AN
T A
CC
OU
NT
ING
PO
LIC
IES
(C
onti
nued
)
e.
D
eposi
ts a
nd I
nves
tmen
ts
The
City
’s c
ash
and
cash
equ
ival
ents
are
con
side
red
cash
on h
and, dem
and d
eposi
ts
and s
hort
-ter
m i
nves
tmen
ts w
ith a
n o
rigin
al m
aturi
ty o
f th
ree
month
s or
less
fro
m t
he
dat
e of
acquis
itio
n.
Cas
h a
nd i
nves
tmen
ts o
f th
e C
ity
are
poole
d i
nto
a c
om
mon p
oole
d a
ccount
in o
rder
to
max
imiz
e in
ves
tmen
t opport
unit
ies.
E
ach f
und w
hose
monie
s ar
e dep
osi
ted i
nto
the
poole
d a
ccount
has
equit
y her
ein, an
d i
nte
rest
ear
ned
on t
he
inves
tmen
t of
thes
e m
onie
s
is al
loca
ted
base
d up
on re
lativ
e eq
uity
at m
onth
end
. A
n in
divi
dual
fund
’s e
quity
in th
e poole
d a
ccount
is a
vai
lable
upon d
eman
d a
nd i
s co
nsi
der
ed t
o b
e a
cash
equiv
alen
t
whe
n pr
epar
ing
thes
e fin
anci
al st
atem
ents.
Eac
h fu
nd’s
por
tion
of th
e po
ol is
disp
laye
d on i
ts r
espec
tive
bal
ance
shee
t/st
atem
ent
of
net
ass
ets
as c
ash a
nd c
ash e
quiv
alen
ts.
Inves
tmen
ts w
ith a
mat
uri
ty o
f one
year
or
less
when
purc
has
ed a
nd n
onneg
oti
able
cert
ific
ates
of
dep
osi
t ar
e st
ated
at
amort
ized
cost
. I
nves
tmen
ts w
ith a
mat
uri
ty g
reat
er
than
one
year
when
purc
has
ed a
re r
eport
ed a
t fa
ir v
alue.
In
ves
tmen
ts i
n t
he
pen
sion
trust
funds
are
stat
ed a
t fa
ir v
alue.
F
air
val
ue
is b
ased
on q
uote
d m
arket
pri
ces
at
June
30 f
or
deb
t se
curi
ties
, eq
uit
y se
curi
ties
and m
utu
al f
unds
and c
ontr
act
val
ues
for
insu
rance
contr
acts
.
f.
In
terf
und R
ecei
vab
les/
Pay
able
s
Duri
ng t
he
cours
e of
oper
atio
ns,
num
erous
tran
sact
ions
occ
ur
bet
wee
n i
ndiv
idual
funds
for
goods
pro
vid
ed o
r se
rvic
es r
ender
ed. T
hes
e sh
ort
-ter
m r
ecei
vab
les
and
paya
bles
are
cla
ssifi
ed a
s “du
e fr
om o
ther
fund
s” o
r “du
e to
oth
er fu
nds”
on
the
finan
cial
sta
tem
ents
. L
ong-t
erm
port
ions,
if
any, ar
e cl
assi
fied
as “
adva
nces
to o
ther
fu
nds”
or “
adva
nces
from
oth
er fu
nds.”
g.
Inven
tori
es
Inven
tori
es a
re v
alued
at
cost
usi
ng t
he
firs
t-in
, fi
rst-
out
(FIF
O)
met
hod a
nd a
re
acco
unte
d f
or
on t
he
consu
mpti
on m
ethod
.
h.
Pre
pai
d I
tem
s/E
xpen
ses
Pay
men
ts m
ade
to v
endors
for
serv
ices
that
wil
l ben
efit
per
iods
bey
ond t
he
dat
e of
this
rep
ort
are
rec
ord
ed a
s pre
pai
d i
tem
s/ex
pen
ses.
A-10
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
1.
SU
MM
AR
Y O
F S
IGN
IFIC
AN
T A
CC
OU
NT
ING
PO
LIC
IES
(C
onti
nued
)
i.
C
apit
al A
sset
s
Cap
ital
ass
ets,
whic
h i
ncl
ude
pro
per
ty, pla
nt,
equ
ipm
ent
and i
nfr
astr
uct
ure
ass
ets
(e.g
., r
oad
s, b
ridges
, si
dew
alks
and s
imil
ar i
tem
s) a
re r
eport
ed i
n t
he
appli
cable
gover
nm
enta
l or
busi
nes
s-ty
pe
acti
vit
ies
colu
mn
s in
th
e go
ver
nm
ent-
wid
e fi
nan
cial
stat
emen
ts. C
apit
al a
sset
s ar
e def
ined
by t
he
Cit
y a
s as
sets
wit
h a
n i
nit
ial,
in
div
idu
al
cost
in e
xce
ss $
20,0
00 a
nd a
n e
stim
ated
use
ful
life
in e
xce
ss o
f one
yea
r.
Such
ass
ets
are
reco
rded
at
his
tori
cal
cost
or
esti
mat
ed h
isto
rica
l co
st i
f purc
has
ed o
r co
nst
ruct
ed.
Donat
ed c
apit
al a
sset
s ar
e re
cord
ed a
t es
tim
ated
fai
r m
arket
val
ue
at t
he
dat
e of
do
nat
ion
.
The
cost
s of
norm
al m
ainte
nan
ce a
nd r
epai
rs, in
cludin
g s
tree
t over
lays
that
do n
ot
add t
o t
he
val
ue
of
the
asse
t or
mat
eria
lly e
xte
nd a
sset
liv
es a
re n
ot
capit
aliz
ed.
Maj
or
outl
ays
for
capit
al a
sset
s an
d i
mpro
vem
ents
are
cap
ital
ized
as
pro
ject
s ar
e
const
ruct
ed. I
nte
rest
incu
rred
duri
ng t
he
const
ruct
ion p
has
e of
capit
al a
sset
s of
busi
nes
s-ty
pe
acti
vit
ies
is i
ncl
uded
as
par
t of
the
capit
aliz
ed v
alue
of
the
asse
ts
const
ruct
ed. D
onat
ed c
apit
al a
sset
s ar
e re
cord
ed a
t es
tim
ated
fai
r m
arket
val
ue
at t
he
dat
e of
donat
ion. P
roper
ty, pla
nt
and e
quip
men
t is
dep
reci
ated
usi
ng t
he
stra
ight-
line
met
hod o
ver
the
foll
ow
ing e
stim
ated
use
ful
lives
:
Buil
din
g a
nd i
mpro
vem
ents
10-5
0 y
ears
Mac
hin
ery a
nd e
quip
men
t 5-2
0 y
ears
Tra
nsp
ort
atio
n e
quip
men
t 5-1
0 y
ears
Infr
astr
uct
ure
30-5
0 y
ears
j.
C
om
pen
sate
d A
bse
nce
s
Acc
um
ula
ted u
npai
d v
acat
ion, si
ck p
ay a
nd o
ther
em
plo
yee
ben
efit
am
ounts
for
gover
nm
enta
l fu
nd t
ypes
are
acc
rued
in t
hes
e fu
nds
as a
curr
ent
liab
ilit
y t
o t
he
exte
nt
that
em
plo
yee
s hav
e re
tire
d o
r te
rmin
ated
at
yea
r en
d b
ut
hav
e not
bee
n p
aid.
In t
he
gover
nm
ent-
wid
e fi
nan
cial
sta
tem
ents
and t
he
pro
pri
etar
y f
unds
finan
cial
stat
emen
ts a
ccum
ula
ted u
npai
d v
acat
ion, si
ck p
ay a
nd o
ther
em
plo
yee
ben
efit
amounts
are
rec
ord
ed a
s ea
rned
by e
mplo
yee
s.
k.
Long-T
erm
Obli
gat
ions
In t
he
gover
nm
ent-
wid
e fi
nan
cial
sta
tem
ents
, an
d p
ropri
etar
y fu
nds
in t
he
fund
finan
cial
sta
tem
ents
, lo
ng-t
erm
deb
t an
d o
ther
long-t
erm
obli
gat
ions
are
report
ed a
s
liab
ilit
ies
in t
he
appli
cable
gover
nm
enta
l ac
tivit
ies,
busi
nes
s-ty
pe
acti
vit
ies
or
pro
pri
etar
y fu
nd f
inan
cial
sta
tem
ents
. B
ond p
rem
ium
s an
d d
isco
unts
, as
wel
l as
issu
ance
cost
s, a
re d
efer
red a
nd a
mort
ized
over
the
life
of
the
bonds.
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
1.
SU
MM
AR
Y O
F S
IGN
IFIC
AN
T A
CC
OU
NT
ING
PO
LIC
IES
(C
onti
nued
)
k.
Long-T
erm
Obli
gat
ions
(Conti
nued
)
In t
he
fund f
inan
cial
sta
tem
ents
, gover
nm
enta
l fu
nds
reco
gniz
e bond p
rem
ium
s an
d
dis
counts
, as
wel
l as
bond i
ssuan
ce c
ost
s, d
uri
ng t
he
curr
ent
per
iod. T
he
face
am
ount
of
deb
t is
sued
is
report
ed a
s oth
er f
inan
cing s
ourc
es. P
rem
ium
s re
ceiv
ed o
n d
ebt
issu
ance
s ar
e re
port
ed a
s oth
er f
inan
cing s
ourc
es w
hil
e dis
counts
on d
ebt
issu
ance
s ar
e
report
ed a
s oth
er f
inan
cing u
ses.
Is
suan
ce c
ost
s, w
het
her
or
not
wit
hhel
d f
rom
the
actu
al d
ebt
pro
ceed
s re
ceiv
ed, ar
e re
port
ed a
s ex
pen
dit
ure
s.
l.
F
und B
alan
ces/
Net
Ass
ets
In t
he
fund f
inan
cial
sta
tem
ents
, gover
nm
enta
l fu
nds
report
nonsp
endab
le f
und
bal
ance
for
amounts
that
are
eit
her
not
in s
pen
dab
le f
orm
or
legal
ly o
r co
ntr
actu
ally
requir
ed t
o b
e m
ainta
ined
inta
ct. R
estr
icti
ons
of
fund b
alan
ce a
re r
eport
ed f
or
amounts
const
rain
ed b
y l
egal
res
tric
tions
from
outs
ide
par
ties
for
use
fo
r a
spec
ific
purp
ose
, or
exte
rnal
ly i
mpose
d b
y o
uts
ide
enti
ties
or
from
enab
ling l
egis
lati
on
ado
pte
d b
y t
he
Cit
y.
Co
mm
itte
d f
un
d b
alan
ce i
s co
nst
rain
ed b
y f
orm
al a
ctio
ns
of
the
Cit
y C
ou
nci
l, w
hic
h i
s co
nsi
der
ed t
he
Cit
y’s
hig
hest
leve
l of d
ecis
ion
mak
ing
auth
ori
ty.
Fo
rmal
act
ions
incl
ude
reso
luti
ons
and o
rdin
ance
s ap
pro
ved
by t
he
Boar
d.
Ass
igned
fund b
alan
ce r
epre
sen
ts a
mo
un
ts c
on
stra
ined
by t
he
Cit
y’s
inte
nt
to u
se
them
for
a sp
ecif
ic p
urp
ose
. T
he
auth
ori
ty t
o a
ssig
n f
und b
alan
ce h
as b
een d
eleg
ated
to t
he
Cit
y A
dm
inis
trat
or
and F
inan
ce D
irec
tor.
Any r
esid
ual
fund b
alan
ce i
n t
he
Gen
eral
Fund, in
cludin
g f
und b
alan
ce t
arget
s an
d a
ny d
efic
it f
und b
alan
ce o
f an
y
oth
er g
over
nm
enta
l fu
nd i
s re
port
ed a
s unas
signed
.
The
Cit
y h
as e
stab
lish
ed a
fund b
alan
ce p
oli
cy f
or
its
gen
eral
fund t
hat
tar
get
s
unre
stri
cted
fund b
alan
ce a
t 120 d
ays
(4 m
onth
s) o
f es
tim
ated
oper
atin
g
expen
dit
ure
s.
The
Cit
y’s
flow
of
funds
assu
mpti
on p
resc
ribes
that
the
funds
wit
h t
he
hig
hes
t le
vel
of
const
rain
t ar
e ex
pen
ded
fir
st. I
f re
stri
cted
or
unre
stri
cted
funds
are
avai
lable
for
spen
din
g, th
e re
stri
cted
funds
are
spen
t fi
rst.
A
ddit
ional
ly, if
dif
fere
nt
level
s of
unre
stri
cted
funds
are
avai
lable
for
spen
din
g t
he
Cit
y c
on
sid
ers
com
mit
ted
funds
to b
e ex
pen
ded
fir
st f
oll
ow
ed b
y a
ssig
ned
funds
and t
hen
unas
signed
funds.
In t
he
gover
nm
ent-
wid
e fi
nan
cial
sta
tem
ents
, re
stri
cted
net
ass
ets
are
legal
ly r
estr
icte
d
by
outs
ide
par
ties
for
a sp
ecif
ic p
urp
ose
. I
nves
ted i
n c
apit
al a
sset
s, n
et o
f re
late
d d
ebt
is t
he
book v
alue
of
capit
al a
sset
s le
ss a
ny
long-t
erm
deb
t outs
tandin
g t
hat
was
iss
ued
to c
onst
ruct
or
acquir
e th
e ca
pit
al a
sset
s.
Non
e of
the
City
’s n
et a
sset
s or
fund b
alan
ces
resu
lts
from
enab
ling l
egis
lati
on a
dopte
d
by
the
Cit
y.
A-11
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
1.
SU
MM
AR
Y O
F S
IGN
IFIC
AN
T A
CC
OU
NT
ING
PO
LIC
IES
(C
onti
nued
)
m.
Inte
rfund T
ransa
ctio
ns
Inte
rfund s
ervic
e tr
ansa
ctio
ns
are
acco
unte
d f
or
as r
even
ues
, ex
pen
dit
ure
s or
expen
ses.
T
ransa
ctio
ns
that
const
itute
rei
mburs
emen
ts t
o a
fund f
or
expen
dit
ure
s/ex
pen
ses
init
iall
y m
ade
from
it
that
are
pro
per
ly a
ppli
cable
to a
noth
er
fund, ar
e re
cord
ed a
s ex
pen
dit
ure
s/ex
pen
ses
in t
he
reim
burs
ing f
und a
nd a
s re
duct
ions
of
expen
dit
ure
s/ex
pen
ses
in t
he
fun
d t
hat
is
reim
bu
rsed
.
A
ll o
ther
inte
rfund t
ransa
ctio
ns,
ex
cept
inte
rfund s
ervic
e tr
ansa
ctio
ns
and
reim
burs
emen
ts, ar
e re
port
ed a
s tr
ansf
ers.
n.
Use
of
Est
imat
es
The
pre
par
atio
n o
f fi
nan
cial
sta
tem
ents
in
confo
rmit
y w
ith g
ener
ally
acc
epte
d
acco
unti
ng p
rinci
ple
s re
quir
es m
anag
emen
t to
mak
e es
tim
ates
and a
ssum
pti
ons
that
af
fect
the
report
ed a
mounts
of
asse
ts a
nd l
iabil
itie
s an
d d
iscl
osu
re o
f co
nti
ngen
t as
sets
and l
iabil
itie
s at
the
dat
e of
the
finan
cial
sta
tem
ents
and t
he
report
ed a
mounts
of
reven
ues
and e
xpen
dit
ure
s/ex
pen
ses
duri
ng t
he
report
ing p
erio
d. A
ctual
res
ult
s co
uld
dif
fer
from
those
est
imat
es.
2.
DE
PO
SIT
S A
ND
IN
VE
ST
ME
NT
S
T
he
Cit
y m
ainta
ins
a ca
sh a
nd i
nves
tmen
t pool
that
is
avai
lable
for
use
by a
ll f
unds,
ex
clud
ing
the
pens
ion
trust
fund
. Ea
ch fu
nd’s
po
rtio
n o
f th
is p
oo
l is
dis
pla
yed
on
th
e fin
anci
al st
atem
ents
as “
cash
and
inve
stm
ents
.” I
n ad
ditio
n, d
epos
its a
nd in
vest
men
ts a
re
sepa
rate
ly h
eld
by se
vera
l of t
he C
ity’s
fund
s.
Th
e C
ity’s
inve
stm
ent p
olic
y au
thor
izes
the
City
to m
ake
depo
sits
/inve
st i
n i
nsu
red
fi
nan
cial
in
stit
uti
on
s, o
bli
gat
ion
s o
f th
e U
.S.
Tre
asury
and U
.S. ag
enci
es, m
oney
mar
ket
m
utu
al f
unds
wit
h p
ort
foli
os
of
secu
riti
es i
ssued
or
guar
ante
ed b
y t
he
Unit
ed S
tate
s or
agre
emen
ts t
o r
epurc
has
e th
ese
sam
e o
bli
gat
ion
s an
d I
llin
ois
Fu
nd
s.
The
Poli
ce P
ensi
on F
und c
an i
nves
t in
the
sam
e se
curi
ties
as
the
Cit
y, plu
s th
e fo
llow
ing:
cert
ain n
on-U
.S. obli
gat
ions
(corp
ora
te d
ebt
secu
riti
es),
Ill
inois
munic
ipal
cor
pora
tions
’ tax
an
ticip
atio
n w
arra
nts,
vete
ran’
s loa
ns, o
blig
atio
ns o
f the
Sta
te o
f Il
lin
ois
an
d i
ts p
oli
tica
l d
ivis
ion
s (r
ated
Aa
or
bet
ter)
, Il
lin
ois
in
sura
nce
com
pan
y g
ener
al a
nd s
epar
ate
acco
unts
, eq
uit
y m
utu
al f
unds
and e
quit
y s
ecuri
ties
.
It i
s th
e poli
cy o
f th
e C
ity t
o i
nves
t it
s fu
nds
in a
man
ner
whic
h w
ill
pro
vid
e th
e hig
hes
t in
ves
tmen
t re
turn
wit
h t
he
max
imum
sec
uri
ty w
hil
e m
eeti
ng t
he
dai
ly c
ash f
low
dem
ands
of
the
Cit
y a
nd c
onfo
rmin
g t
o a
ll s
tate
and l
oca
l st
atute
s gover
nin
g t
he
inves
tmen
t of
publi
c fu
nds,
usin
g th
e “p
rude
nt p
erso
n” st
anda
rd fo
r man
agin
g th
e ov
eral
l por
tfoli
o. T
he
pri
mar
y obje
ctiv
e of
the
poli
cy i
s sa
fety
(pre
serv
atio
n o
f ca
pit
al a
nd p
rote
ctio
n o
f in
ves
tmen
t pri
nci
pal
), l
iquid
ity a
nd y
ield
.
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
2.
DE
PO
SIT
S A
ND
IN
VE
ST
ME
NT
S (
Conti
nued
)
a.
C
ity D
epo
sits
wit
h F
inan
cial
In
stit
uti
on
s
Cu
sto
dia
l cr
edit
ris
k f
or
dep
osi
ts w
ith
fin
anci
al i
nst
itu
tio
ns
is t
he
risk
th
at i
n t
he
even
t of
a ban
k’s
failu
re, t
he C
ity’s
dep
osits
may
not
be
retu
rned
to it
. Th
e C
ity’s
in
ves
tmen
t poli
cy r
equir
es p
ledgin
g o
f co
llat
eral
wit
h a
fai
r val
ue
of
105%
of
all
ban
k b
alan
ces
in e
xce
ss o
f fe
der
al d
eposi
tory
insu
rance
wit
h t
he
coll
ater
al h
eld b
y
the
City
or t
he C
ity’s
age
nt in
the
City
’s n
ame.
b.
Cit
y I
nv
estm
ents
The
foll
ow
ing t
able
pre
sents
the
inves
tmen
ts a
nd m
aturi
ties
of
the
Cit
y’s
deb
t se
curi
ties
and m
oney
mar
ket
funds
as o
f Ju
ne
30, 2012:
In
ves
tmen
t M
atu
riti
es (
in Y
ears
)
Inves
tmen
t T
yp
e F
air
Val
ue
Les
s th
an 1
1
-5
6-1
0
Gre
ater
th
an 1
0
Illi
no
is M
etro
po
lita
n
In
ves
tmen
t F
un
d
$
1,1
00
,15
4
$
-
$
1,1
00
,15
4
$
-
$
-
TO
TA
L
$
1,1
00
,15
4
$
- $
1
,10
0,1
54
$
-
$
-
In a
ccord
ance
wit
h i
ts i
nves
tmen
t poli
cy, th
e C
ity l
imit
s it
s ex
posu
re t
o i
nte
rest
rat
e
risk
by s
truct
uri
ng t
he
port
foli
o t
o p
rovid
e li
quid
ity f
or
oper
atin
g f
unds
and
max
imiz
ing y
ield
s fo
r fu
nds
not
nee
ded
wit
hin
a t
wo
-yea
r per
iod. T
he
inves
tmen
t
po
licy
lim
its
the
max
imu
m m
atu
rity
len
gth
of
inves
tmen
ts t
wo y
ears
fro
m d
ate
of
purc
has
e, e
xce
pt
for
rese
rve
fun
ds.
In
ves
tmen
ts i
n r
eser
ve
funds
may
be
purc
has
ed
wit
h m
aturi
ties
to m
atch
futu
re p
roje
cts
or
liab
ilit
y r
equir
emen
ts.
Th
e C
ity l
imit
s it
s ex
po
sure
to
cre
dit
ris
k, th
e ri
sk t
hat
the
issu
er o
f a
deb
t se
curi
ty
wil
l not
pay
its
par
val
ue
upon m
aturi
ty, by p
rim
aril
y i
nves
ting i
n c
erti
fica
tes
of
dep
osi
t at
$100,0
00 o
r le
ss e
ach a
nd m
oney
mar
ket
mu
tual
fu
nd
s.
Th
e Il
lin
ois
Met
ropoli
tan I
nves
tmen
t 1-3
Yea
r F
und i
s ra
ted
AA
f b
y S
tan
dar
d a
nd
Po
or’
s.
Cu
sto
dia
l cr
edit
ris
k f
or
inv
estm
ents
is
the
risk
that
, in
the
even
t of
the
fail
ure
of
the
counte
rpar
ty t
o t
he
inves
tmen
t, t
he
Cit
y w
ill
not
be
able
to r
ecover
the
val
ue
of
its
inv
estm
ents
th
at a
re i
n p
oss
essi
on
of
an o
uts
ide
par
ty.
To
lim
it i
ts e
xp
osu
re,
the
City
’s in
vest
men
t pol
icy
requ
ires a
ll se
curit
y tra
nsac
tions
that
are
exp
osed
to
cust
odia
l cr
edit
ris
k t
o b
e pro
cess
ed o
n a
del
iver
y ver
sus
pay
men
t (D
VP
) bas
is w
ith
the
under
lyin
g i
nves
tmen
ts h
eld b
y a
thi
rd p
arty
act
ing
as th
e C
ity’s
age
nt se
para
te
from
wher
e th
e in
ves
tmen
t w
as p
urc
has
ed o
r by t
he
trust
dep
artm
ent
of
the
ban
k
whe
re p
urch
ased
, in
the
City
’s n
ame.
Th
e Il
lin
ois
Met
rop
oli
tan
Inves
tmen
t F
und i
s
no
t su
bje
ct t
o c
ust
od
ial
cred
it r
isk
.
A-12
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
2.
DE
PO
SIT
S A
ND
IN
VE
ST
ME
NT
S (
Conti
nued
)
b
. C
ity I
nv
estm
ents
(C
on
tin
ued
)
Conce
ntr
atio
n o
f C
redit
Ris
k -
The
City
’s in
vest
men
t pol
icy
limits
the
amou
nt o
f the
port
foli
o t
hat
can
be
inves
ted i
n a
ny o
ne
inves
tmen
t veh
icle
to 5
0%
of
the
port
foli
o,
excl
udin
g U
.S.
Tre
asury
obli
gat
ions.
The
City
’s in
vest
men
t pol
icy
does
not
spec
ifica
lly p
rohi
bit t
he u
se o
f or t
he
inves
tmen
t in
der
ivat
ives
.
c.
Po
lice
Pens
ion
Fund
’s D
epos
its w
ith F
inan
cial
Inst
itutio
ns
Cust
odia
l cr
edit
ris
k f
or
dep
osi
ts w
ith f
inan
cial
in
stit
uti
on
s is
th
e ri
sk t
hat
in
th
e
even
t of
a ban
k’s
failu
re, t
he P
olic
e Pe
nsio
n Fu
nd’s
dep
osits
may
not
be
retu
rned
to
them
. Th
e Po
lice
Pens
ion
Fund
’s in
vest
men
t pol
icie
s do
not r
equi
re p
ledg
ing
of
coll
ater
al f
or
all
ban
k b
alan
ces
in e
xce
ss o
f fe
der
al d
eposi
tory
insu
rance
, si
nce
flo
w-
thro
ugh
FDIC
insu
ranc
e is
ava
ilabl
e fo
r the
Pol
ice
Pens
ion
Fund
’s d
epos
its w
ith
fin
anci
al i
nst
itu
tio
ns.
d.
Poli
ce P
ensi
on F
und I
nves
tmen
ts
The
foll
ow
ing t
able
pre
sents
the
inves
tmen
ts a
nd m
aturi
ties
of
the
Poli
ce P
ensi
on
Fu
nd’
s deb
t sec
uriti
es a
nd m
oney
mar
ket m
utua
l fun
ds a
s of J
un
e 3
0,
20
12
:
In
ves
tmen
t M
atu
riti
es (
in Y
ears
)
Inves
tmen
t T
yp
e F
air
Val
ue
Les
s th
an 1
1
-5
6-1
0
Gre
ater
th
an 1
0
U.S
. T
reas
ury
ob
ligat
ion
s $
2
,08
7,0
87
$
2
20
,24
5
$
1,0
84
,84
0
$
78
2,0
02
$
-
U.S
. A
gen
cy o
bli
gat
ion
s
4,2
67
,21
2
5
70
,67
5
1
,98
3,6
25
1,6
95
,00
8
1
7,9
04
Sta
te a
nd
lo
cal
ob
ligat
ion
s
30
6,7
76
-
-
10
4,5
22
20
2,2
54
TO
TA
L
$
6,6
61
,07
5
$
79
0,9
20
$
3
,06
8,4
65
$
2
,58
1,5
32
$
2
20
,15
8
In a
ccord
ance
wit
h i
ts i
nves
tmen
t p
oli
cy, th
e P
oli
ce P
ensi
on F
un
d l
imit
s it
s ex
po
sure
to i
nte
rest
rat
e ri
sk b
y s
truct
uri
ng t
he
port
foli
o t
o p
rovid
e li
quid
ity f
or
oper
atin
g
funds
and m
axim
izin
g y
ield
s fo
r fu
nds
not
nee
ded
wit
hin
a o
ne-
yea
r per
iod. T
he
inv
estm
ent
po
licy
do
es n
ot
lim
it t
he
max
imu
m m
atu
rity
len
gth
of
inv
estm
ents
in
th
e
Poli
ce P
ensi
on F
und.
Th
e P
oli
ce P
ensi
on
Fu
nd
lim
its
its
exp
osu
re t
o c
redit
ris
k, th
e ri
sk t
hat
the
issu
er o
f a
deb
t se
curi
ty w
ill
not
pay
its
par
val
ue
upon m
aturi
ty, by p
rim
aril
y i
nves
ting i
n
ob
ligat
ion
s gu
aran
teed
by t
he
Un
ited
Sta
tes
Gover
nm
ent
or
secu
riti
es i
ssued
by
agen
cies
of
the
Unit
ed S
tate
s G
over
nm
ent
that
are
ex
pli
citl
y o
r im
pli
citl
y g
uar
ante
ed
by t
he
Unit
ed S
tate
s G
over
nm
ent.
T
he
U.S
. ag
ency
obli
gat
ions
are
rate
d f
rom
A t
o
AA
A, th
e st
ate
and l
oca
l obli
gat
ions
are
rate
d f
rom
Aa2
to A
2.
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
2.
DE
PO
SIT
S A
ND
IN
VE
ST
ME
NT
S (
Conti
nued
)
d.
Poli
ce P
ensi
on F
und I
nves
tmen
ts (
Conti
nued
)
Cust
odia
l cr
edit
ris
k f
or
inves
tmen
ts i
s th
e ri
sk t
hat
, in
the
even
t of
the
fail
ure
of
the
counte
rpar
ty t
o t
he
inves
tmen
t, t
he
Poli
ce P
ensi
on F
und w
ill
not
be
able
to r
ecover
the
val
ue
of
its
inves
tmen
ts t
hat
are
in p
oss
essi
on
of
an o
uts
ide
par
ty.
To
lim
it i
ts
expo
sure
, the
Pol
ice
Pens
ion
Fund
’s in
vest
men
t pol
icy
requ
ires a
ll se
curit
y tr
ansa
ctio
ns
that
are
ex
pose
d t
o c
ust
odia
l cr
edit
ris
k t
o b
e pro
cess
ed o
n a
del
iver
y
ver
sus
pay
men
t (D
VP
) bas
is w
ith t
he
under
lyin
g i
nves
tmen
ts h
eld b
y a
thir
d p
arty
actin
g as
the
Polic
e Pe
nsio
n Fu
nd’s
age
nt se
para
te fr
om w
here
the
inve
stm
ent w
as
purc
hase
d in
the
Polic
e Pe
nsio
n Fu
nd’s
nam
e. T
he m
oney
mar
ket
mutu
al f
unds
are
no
t su
bje
ct t
o c
ust
od
ial
cred
it r
isk
.
3.
RE
CE
IVA
BL
ES
- P
RO
PE
RT
Y T
AX
ES
Pro
per
ty t
axes
for
the
2011 l
evy y
ear
atta
ch a
s an
enfo
rcea
ble
lie
n o
n J
anuar
y 1
, 2011
, on
pro
per
ty v
alues
ass
esse
d a
s of
the
sam
e dat
e.
Tax
es a
re l
evie
d b
y D
ecem
ber
of
the
sam
e
yea
r by
pas
sage
of
a T
ax L
evy O
rdin
ance
. T
ax b
ills
are
pre
par
ed b
y t
he
County
and i
ssued
on o
r ab
out
May
1, 2012 a
nd A
ugust
1, 2012, an
d a
re p
ayab
le i
n t
wo i
nst
allm
ents
, on o
r
about
June
1, 2012 a
nd S
epte
mber
1,
2012.
The
County
coll
ects
such
tax
es a
nd r
emit
s
them
per
iodic
ally
.
Fo
r gover
nm
enta
l fu
nds,
pro
per
ty t
axes
coll
ecte
d, w
hic
h a
re u
sed t
o f
inan
ce t
he
curr
ent
year
’s o
pera
tions
, are
reco
gniz
ed a
s rev
enue
. Pr
oper
ty ta
xes u
ncol
lect
ed, w
hich
are
to b
e use
d t
o f
inan
ce t
he
subse
quen
t yea
r’s o
pera
tions
, are
repo
rted
as n
et ta
xes
rec
eivab
le a
nd
def
erre
d r
even
ue.
T
he
2012 t
ax l
evy, w
hic
h a
ttac
hed
as
an e
nfo
rcea
ble
lie
n o
n p
roper
ty a
s
of
Januar
y 1
, 2012, has
not
bee
n r
ecord
ed a
s a
rece
ivab
le a
s of
June
30, 2012 a
s th
e ta
x h
as
no
t yet
bee
n l
evie
d b
y t
he
Cit
y a
nd
wil
l n
ot
be
levie
d u
nti
l D
ecem
ber
2012 a
nd, th
eref
ore
,
the
levy i
s not
mea
sura
ble
at
June
30, 2012.
4.
CA
PIT
AL
AS
SE
TS
C
apit
al a
sset
act
ivit
y f
or
the
yea
r en
ded
June
30, 2012 i
s as
foll
ow
s:
Bal
ance
s
July
1
Ad
dit
ion
s
Ret
irem
ents
Bal
ance
s
Jun
e 3
0
GO
VE
RN
ME
NT
AL
AC
TIV
ITIE
S
C
apit
al a
sset
s n
ot
bei
ng d
epre
ciat
ed
Lan
d
$
1,5
21
,32
2
$
- $
-
$
1,5
21
,32
2
Lan
d r
igh
t o
f w
ay
2
0,4
93
,84
4
-
-
2
0,4
93
,84
4
Co
nst
ruct
ion
in
pro
gre
ss
2
,12
8,5
43
42
9,9
49
-
2,5
58
,49
2
Per
man
ent
ease
men
ts
2
49
,52
5
5
52
-
25
0,0
77
T
ota
l ca
pit
al a
sset
s n
ot
bei
ng
d
epre
ciat
ed
2
4,3
93
,23
4
4
30
,50
1
-
2
4,8
23
,73
5
A-13
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
4.
CA
PIT
AL
AS
SE
TS
(C
on
tin
ued
)
Bal
ance
s
July
1
Ad
dit
ion
s
Ret
irem
ents
Bal
ance
s
Jun
e 3
0
GO
VE
RN
ME
NT
AL
AC
TIV
ITIE
S
(C
on
tin
ued
)
C
apit
al a
sset
s b
ein
g d
epre
ciat
ed
Bu
ild
ing a
nd
im
pro
vem
ents
$
1
7,7
68
,03
7
$
- $
-
$
17
,76
8,0
37
Tra
nsp
ort
atio
n e
qu
ipm
ent
1
,84
7,9
22
27
1,4
86
-
2,1
19
,40
8
Infr
astr
uct
ure
78
,93
0,0
31
2,4
82
,63
8
-
8
1,4
12
,66
9
T
ota
l ca
pit
al a
sset
s b
ein
g
dep
reci
ated
9
8,5
45
,99
0
2
,75
4,1
24
-
1
01
,30
0,1
14
L
ess
accu
mu
late
d d
epre
ciat
ion
fo
r
Bu
ild
ing a
nd
im
pro
vem
ents
2,2
57
,91
8
3
75
,22
8
-
2
,63
3,1
46
Tra
nsp
ort
atio
n e
qu
ipm
ent
8
46
,25
2
1
73
,10
7
-
1
,01
9,3
59
Infr
astr
uct
ure
23
,25
2,1
25
1,9
33
,20
5
-
2
5,1
85
,33
0
T
ota
l ac
cum
ula
ted
dep
reci
atio
n
2
6,3
56
,29
5
2
,48
1,5
40
-
28
,83
7,8
35
T
ota
l ca
pit
al a
sset
s b
ein
g
dep
reci
ated
, n
et
7
2,1
89
,69
5
2
72
,58
4
-
7
2,4
62
,27
9
TO
TA
L G
OV
ER
NM
EN
TA
L
A
CT
IVIT
IES
, N
ET
$
96
,58
2,9
29
$
70
3,0
85
$
-
$
97
,28
6,0
14
B
US
INE
SS
-TY
PE
AC
TIV
ITIE
S
C
apit
al a
sset
s n
ot
bei
ng d
epre
ciat
ed
Lan
d
$
30
1,1
15
$
-
$
- $
3
01
,11
5
Co
nst
ruct
ion
in
pro
gre
ss
3
6,2
53
84
2,1
61
36
,25
3
8
42
,16
1
T
ota
l ca
pit
al a
sset
s n
ot
bei
ng
dep
reci
ated
3
37
,36
8
8
42
,16
1
3
6,2
53
1
,14
3,2
76
C
apit
al a
sset
s b
ein
g d
epre
ciat
ed
Bu
ild
ing a
nd
im
pro
vem
ents
11
,98
0,5
49
-
-
11
,98
0,5
49
Tra
nsp
ort
atio
n e
qu
ipm
ent
7
26
,89
5
8
4,6
27
-
81
1,5
22
Wat
er d
istr
ibu
tio
n,
sto
rm a
nd
san
itar
y
sy
stem
in
fras
tru
ctu
re
5
4,7
20
,58
5
9
00
,25
3
-
5
5,6
20
,83
8
T
ota
l ca
pit
al a
sset
s b
ein
g
dep
reci
ated
6
7,4
28
,02
9
9
84
,88
0
-
6
8,4
12
,90
9
L
ess
accu
mu
late
d d
epre
ciat
ion
fo
r
Bu
ild
ing a
nd
im
pro
vem
ents
1,2
60
,42
5
8
,77
0
-
1
,26
9,1
95
Tra
nsp
ort
atio
n e
qu
ipm
ent
3
43
,71
4
5
4,2
62
-
39
7,9
76
Wat
er d
istr
ibu
tio
n,
sto
rm a
nd
san
itar
y
sy
stem
in
fras
tru
ctu
re
1
1,6
96
,12
1
1
,17
3,9
73
-
12
,87
0,0
94
T
ota
l ac
cum
ula
ted
dep
reci
atio
n
1
3,3
00
,26
0
1
,23
7,0
05
-
14
,53
7,2
65
T
ota
l ca
pit
al a
sset
s b
ein
g
dep
reci
ated
, n
et
5
4,1
27
,76
9
(2
52
,12
5)
-
5
3,8
75
,64
4
TO
TA
L B
US
INE
SS
-TY
PE
A
CT
IVIT
IES
, N
ET
$
54
,46
5,1
37
$
59
0,0
36
$
36
,25
3
$
55
,01
8,9
20
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
4.
CA
PIT
AL
AS
SE
TS
(C
on
tin
ued
)
D
epre
ciat
ion e
xpen
se w
as c
har
ged
to f
unct
ions
of
the
pri
mar
y gover
nm
ent
as f
oll
ow
s:
GO
VE
RN
ME
NT
AL
AC
TIV
ITIE
S
G
ener
al a
dm
inis
trat
ion
$
1
3,6
21
P
oli
ce a
nd a
nim
al c
ontr
ol
1
46
,91
4
B
uil
din
gs,
pla
nnin
g a
nd d
evel
opm
ent
2
,04
3
S
tree
ts a
nd y
ard w
aste
2,0
53
,27
1
P
ubli
c w
ork
s
26
5,6
91
TO
TA
L D
EP
RE
CIA
TIO
N E
XP
EN
SE
-
G
OV
ER
NM
EN
TA
L A
CT
IVIT
IES
$
2
,48
1,5
40
BU
SIN
ES
S-T
YP
E A
CT
IVIT
IES
W
ater
work
s an
d s
ewer
age
$
1,2
37
,00
5
5.
RIS
K M
AN
AG
EM
EN
T
The
Cit
y i
s ex
pose
d t
o v
ario
us
risk
s of
loss
rel
ated
to t
ort
s; t
hef
t of,
dam
age
to a
nd
des
truct
ion o
f as
sets
; er
rors
and o
mis
sions;
inju
ries
to e
mplo
yee
s; a
nd n
atura
l dis
aste
rs.
In
resp
on
se t
o t
his
ex
po
sure
, th
e C
ity h
as p
urc
has
ed i
nsu
rance
thro
ugh t
radit
ional
poli
cies
.
Set
tled
ris
ks
hav
e not
exce
eded
com
mer
cial
insu
rance
cover
age
in a
ny o
f th
e pas
t th
ree
fisc
al y
ears
.
T
he
Cit
y i
s a
mem
ber
of
the
South
wes
t A
gen
cy f
or
Hea
lth M
anag
emen
t (S
WA
HM
), a
n
agen
cy c
om
pri
sed o
f ei
gh
t co
mm
unit
ies
form
ed t
o b
e a
single
mem
ber
in t
he
Inte
rgover
nm
enta
l P
erso
nnel
Ben
efit
s C
oo
per
ativ
e (I
PB
C)
wh
ich
ad
min
iste
rs p
erso
nn
el
ben
efit
s (p
rim
aril
y m
edic
al, den
tal
and l
ife
insu
rance
cover
age)
on b
ehal
f of
its
mem
ber
s.
Pre
miu
ms
are
pai
d m
onth
ly t
o a
noth
er m
ember
of
SW
AH
M,
whic
h i
s re
sponsi
ble
for
coll
ecti
ng a
ll m
onie
s an
d r
emit
ting t
hem
to I
PB
C.
IP
BC
is
a publi
c en
tity
ris
k p
ool
esta
bli
shed
by c
erta
in u
nit
s of
loca
l gover
nm
ent
in I
llin
ois
to a
dm
inis
ter
som
e or
all
of
the
per
sonnel
ben
efit
pro
gra
ms
off
ered
by t
hes
e m
ember
s to
thei
r off
icer
s an
d e
mplo
yee
s an
d t
o t
he
off
icer
s an
d e
mplo
yee
s of
cert
ain g
over
nm
enta
l,
quas
i-gover
nm
enta
l an
d n
onpro
fit
publi
c se
rvic
e en
titi
es.
IP
BC
rec
eives
, pro
cess
es a
nd
pay
s su
ch c
laim
s as
may
com
e w
ithin
the
ben
efit
pro
gra
m o
f ea
ch m
ember
. M
anag
emen
t
consi
sts
of
a B
oar
d o
f D
irec
tors
com
pri
sed o
f one
appoin
ted r
epre
senta
tive
from
eac
h
mem
ber
. I
n a
ddit
ion, th
ere
are
two o
ffic
ers;
a B
enef
it A
dm
inis
trat
or
and a
Tre
asure
r.
The
Cit
y,
thro
ugh i
ts m
ember
ship
in S
WA
HM
, does
not
exer
cise
any c
ontr
ol
over
the
acti
vit
ies
of IP
BC
bey
ond
SWA
HM
’s r
epre
senta
tion o
n t
he
Boar
d o
f D
irec
tors
.
A-14
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
6.
LO
NG
-TE
RM
DE
BT
a.
G
ener
al O
bli
gat
ion B
onds
Th
e C
ity i
ssu
es g
ener
al o
bli
gat
ion b
onds
to p
rovid
e fu
nds
for
the
acquis
itio
n a
nd
const
ruct
ion o
f m
ajor
capit
al f
acil
itie
s.
Gen
eral
obli
gat
ion b
onds
are
dir
ect
obli
gat
ions
and p
ledges
the
full
fai
th a
nd c
redit
of
the
Cit
y a
nd a
re p
ayab
le f
rom
gover
nm
enta
l ac
tivit
ies/
funds
and b
usi
nes
s-ty
pe
acti
vit
ies/
ente
rpri
se f
unds.
G
ener
al
ob
ligat
ion
bo
nd
s cu
rren
tly o
uts
tan
din
g a
re a
s fo
llo
ws:
Issu
e
Fu
nd
Deb
t
Ret
ired
by
Bal
ance
s
July
1
Issu
ance
s
Ret
irem
ents
Bal
ance
s
Jun
e 3
0
Cu
rren
t
Po
rtio
n
$1
,50
0,0
00
Gen
eral
Ob
ligat
ion
Lim
ited
Tax
Bo
nd
s o
f 2
00
5A
, an
nu
al
inst
allm
ents
of
$1
65
,00
0
to $
19
5,0
00
th
rou
gh
Jan
uar
y 1
, 2
01
4,
inte
rest
at 3
.55
% t
o 4
.10
%
pay
able
eac
h J
anu
ary 1
and
Ju
ly 1
.
Bo
nd
Sin
kin
g
$
60
5,0
00
$
-
$
20
0,0
00
$
40
5,0
00
$
21
0,0
00
$2
,30
5,0
00
Gen
eral
Ob
ligat
ion
Lim
ited
Tax
Bo
nd
s o
f 2
00
8,
du
e in
ann
ual
in
stal
lmen
ts o
f
$4
15
,00
0 t
o $
33
0,0
00
thro
ugh
Jan
uar
y 1
, 2
01
5,
inte
rest
at
6.0
0%
to
6.5
0%
pay
able
eac
h J
anu
ary 1
and
Ju
ly 1
.
Bo
nd
Sin
kin
g
1
,44
5,0
00
-
4
70
,00
0
9
75
,00
0
5
00
,00
0
TO
TA
L
$
2
,05
0,0
00
$
-
$
67
0,0
00
$
1
,38
0,0
00
$
7
10
,00
0
b
. G
ener
al O
bli
gat
ion
Bo
nd
s (A
lter
nat
e R
even
ue
Sourc
e)
Th
e C
ity i
ssu
es g
ener
al o
bli
gat
ion
bonds
(alt
ernat
e re
ven
ue
sourc
e) t
o p
rovid
e fu
nds
for
the
acquis
itio
n a
nd c
onst
ruct
ion o
f m
ajor
capit
al f
acil
itie
s.
The
alte
rnat
e re
ven
ue
sourc
e bonds
are
issu
ed f
or
whic
h t
he
Cit
y h
ave
ple
dged
futu
re r
even
ue
stre
ams.
T
he
Serie
s 201
2 al
tern
ate
reve
nue
sour
ce b
onds
are
pay
able
for a
ple
dge
of th
e C
ity’s
publi
c in
fras
truct
ure
sal
es t
axes
and r
even
ue
shar
ing r
ecei
pts
. T
he
bonds
hav
e a
tota
l
rem
ainin
g p
ledge
of
$10,8
28,3
23, w
ith t
he
bonds
mat
uri
ng J
anuar
y 1, 20
20. N
o
pay
men
ts w
ere
due
or
mad
e duri
ng t
he
curr
ent
fisc
al y
ear.
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
6.
LO
NG
-TE
RM
DE
BT
(C
onti
nued
)
b.
Gen
eral
Obli
gat
ion B
onds
(Alt
ernat
e R
even
ue
Sourc
e) (
Conti
nued
)
Issu
e
Fu
nd
Deb
t
Ret
ired
by
Bal
ance
s
July
1
Issu
ance
s
Ret
irem
ents
Bal
ance
s
Jun
e 3
0
Cu
rren
t
Po
rtio
n
$9
,75
0,0
00
Gen
eral
Ob
ligat
ion
Bo
nd
s
(Alt
ern
ate
Rev
enu
e
So
urc
e) o
f 2
01
2,
ann
ual
inst
allm
ents
of
$1
,30
0,0
00
to $
1,5
00
,00
0 t
hro
ugh
Jan
uar
y 1
, 2
02
0,
inte
rest
at 2
.00
% t
o 2
.50
%
pay
able
eac
h J
anu
ary 1
and
Ju
ly 1
.
Cap
ital
Pro
ject
s
$
-
$
9,7
50
,00
0
$
-
$
9,7
50
,00
0
$
-
c.
D
ebt
Cer
tifi
cate
s
The
Cit
y i
ssued
deb
t ce
rtif
icat
es t
o p
rovid
e fu
nds
for
the
const
ruct
ion o
f a
publi
c
work
s fa
cili
ty (
Wat
erw
ork
s an
d S
ewer
age
Fund p
ort
ion o
f pro
ject
).
Issu
e
Fu
nd
Deb
t
Ret
ired
by
Bal
ance
s
July
1
Issu
ance
s
Ret
irem
ents
Bal
ance
s
Jun
e 3
0
Cu
rren
t
Po
rtio
n
$1
,50
0,0
00
Deb
t
Cer
tifi
cate
s o
f 2
00
5B
,
ann
ual
in
stal
lmen
ts o
f
$1
25
,00
0 t
o $
18
0,0
00
thro
ugh
Jan
uar
y 1
, 2
01
6,
inte
rest
at
3.5
5%
to
4.2
0%
pay
able
eac
h J
anu
ary 1
and
Ju
ly 1
.
Wat
erw
ork
s
and
Sew
erag
e
$
82
5,0
00
$
-
$
15
0,0
00
$
67
5,0
00
$
16
0,0
00
d.
Gen
eral
Obli
gat
ion C
apit
al A
ppre
ciat
ion B
onds
Th
e C
ity i
ssu
es g
ener
al o
bli
gat
ion c
apit
al a
ppre
ciat
ion b
onds
to p
rovid
e fu
nds
for
var
ious
stre
et p
roje
cts.
A-15
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
6.
LO
NG
-TE
RM
DE
BT
(C
onti
nued
)
d.
Gen
eral
Obli
gat
ion C
apit
al A
ppre
ciat
ion B
onds
(Conti
nued
)
Gen
eral
obli
gat
ion c
apit
al a
ppre
ciat
ion b
onds
are
dir
ect
obli
gat
ions
and p
ledge
the
full
fai
th a
nd
cre
dit
of
the
Cit
y.
Gen
eral
obli
gat
ion c
apit
al a
ppre
ciat
ion b
onds
curr
entl
y o
uts
tandin
g a
re a
s fo
llow
s:
Issu
e
Fu
nd
Deb
t
Ret
ired
by
Bal
ance
s
Jan
uar
y 1
Issu
ance
s*
Ret
irem
ents
Bal
ance
s
Dec
emb
er 3
1
Cu
rren
t
Po
rtio
n
$9
75
,00
0 2
00
9 G
ener
al
Ob
ligat
ion
Cap
ita l
Ap
pre
ciat
ion
Bon
ds
dat
ed D
ecem
ber
9,
20
09
, d
ue
in a
nn
ual
inst
allm
ents
of
$1
35
,00
0 t
o $
43
5,0
00
thro
ugh
20
16
wit
h
inte
rest
ran
gin
g f
rom
2.5
4%
to
3.0
4%
.
Bo
nd
Sin
kin
g
$
88
0,6
24
$
24
,16
3
$
-
$
90
4,7
87
$
-
*Is
suan
ces
incl
ude
$24,1
63 f
or
curr
ent
yea
r ac
cret
ion.
e.
IE
PA
Lo
ans
The
Cit
y, th
rough t
he
Illi
nois
Envir
onm
enta
l P
rote
ctio
n A
gen
cy (
IEP
A),
rec
eived
low
in
tere
st l
oan
s fo
r th
e co
nst
ruct
ion
of
wat
er s
yst
em i
mpro
vem
ents
and w
aste
wat
er
trea
tmen
t fa
cili
ties
pay
able
fro
m w
ater
and s
ewer
fee
s.
IEP
A l
oan
s cu
rren
tly
outs
tandin
g a
re a
s fo
llow
s:
Fu
nd
Deb
t
Ret
ired
by
Bal
ance
s
July
1
Ad
dit
ion
s
Ret
irem
ents
Bal
ance
s
Jun
e 3
0
Cu
rren
t
Po
rtio
n
EP
A L
oan
I
Wat
erw
ork
s
and
Sew
erag
e
$
3,5
63
,64
8
$
-
$
22
4,9
57
$
3,3
38
,69
1
$
23
0,6
17
EP
A L
oan
II
Wat
erw
ork
s
and
Sew
erag
e
9
,16
5,4
44
-
4
11
,85
0
8
,75
3,5
94
4
22
,21
1
TO
TA
L
$
1
2,7
29
,09
2
$
- $
6
36
,80
7
$
12
,09
2,2
85
$
6
52
,82
8
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
6.
LO
NG
-TE
RM
DE
BT
(C
onti
nued
)
f.
In
terg
over
nm
enta
l N
ote
Pay
able
T
he
Cit
y h
as e
nte
red i
nto
a n
ote
pay
able
wit
h t
he
Illi
no
is S
tate
To
ll H
igh
way
Auth
ori
ty f
or
the
const
ruct
ion o
f ce
rtai
n e
ntr
ance
and e
xit
ram
ps.
T
he
note
pay
able
curr
entl
y o
uts
tandin
g i
s as
foll
ow
s:
Issu
e
Fu
nd
Deb
t
Ret
ired
by
Bal
ance
s
July
1,
Res
tate
d
Issu
ance
s
Ret
irem
ents
Bal
ance
s
Jun
e 3
0
Cu
rren
t
Po
rtio
n
$2
,30
0,0
00
no
te p
ayab
le
dat
ed J
uly
5,
20
06
, d
ue
in
var
iou
s an
nu
al i
nst
allm
ents
thro
ugh
Dec
emb
er 3
1,
20
14
.
Deb
t
Ser
vic
e
$
1,3
50
,00
0
$
-
$
10
0,0
00
$
1,2
50
,00
0
$
10
0,0
00
TO
TA
L N
OT
E P
AY
AB
LE
$
1,3
50
,00
0
$
- $
1
00
,00
0
$
1,2
50
,00
0
$
10
0,0
00
g.
Deb
t S
ervic
e R
equir
emen
ts t
o M
aturi
ty
Deb
t se
rvic
e re
quir
emen
ts t
o m
aturi
ty a
re a
s fo
llow
s:
Gover
nm
enta
l A
ctiv
itie
s
F
isca
l Y
ear
Endin
g
No
te P
ayab
le
June
30,
P
rinci
pal
In
tere
st
Tota
l
2013
$
100,0
00
$
- $
100,0
00
2014
100,0
00
-
100,0
00
2015
1,0
50,0
00
-
1,0
50,0
00
TO
TA
L
$
1,2
50,0
00
$
- $
1,2
50,0
00
F
isca
l Y
ear
Endin
g
Gen
eral
Obli
gat
ion L
imit
ed
Tax
Bonds,
Ser
ies
2005A
Gen
eral
Obli
gat
ion L
imit
ed
Tax
Bonds,
Ser
ies
2008
June
30,
Pri
nci
pal
In
tere
st
Tota
l P
rinci
pal
In
tere
st
Tota
l
2013
$
210,0
00
$
16,3
95
$
22
6,3
95
$
500,0
00
$
60
,15
0
$
560,1
50
2014
195,0
00
7,9
95
2
02
,99
5
145,0
00
3
0,1
50
175,1
50
2015
-
-
-
330,0
00
2
1,4
50
351,4
50
TO
TA
L
$
405,0
00
$
24,3
90
$
42
9,3
90
$
975,0
00
$
11
1,7
50
$
1,0
86,7
50
A-16
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
6.
LO
NG
-TE
RM
DE
BT
(C
onti
nued
)
g.
Deb
t S
ervic
e R
equir
emen
ts t
o M
aturi
ty (
Conti
nued
)
Gover
nm
enta
l A
ctiv
itie
s (C
onti
nued
)
Fis
cal
Yea
r
$9,7
50,0
00 D
ebt
Cer
tifi
cate
s of
2012
Gen
eral
Obli
gat
ion C
apit
al
Appre
ciat
ion B
onds,
Ser
ies
2009
Endin
g
June
30,
Pri
nci
pal
Inte
rest
Tota
l
Acc
reti
on
Pri
nci
pal
Rep
aym
ent
2013
$
- $
1
48
,19
8
$
148,1
98
$
24
,82
9
$
-
2014
1,3
00,0
00
2
16
,87
5
1,5
16,8
75
2
5,5
12
405,0
00
2015
1,3
25,0
00
1
90
,87
5
1,5
15,8
75
1
5,8
60
435,0
00
2016
1,3
50,0
00
1
64
,37
5
1,5
14,3
75
4
,01
2
135,0
00
2017
1,4
00,0
00
1
37
,37
5
1,5
37,3
75
-
-
2018
1,4
25,0
00
1
09
,37
5
1,5
34,3
75
-
-
2019
1,4
50,0
00
7
3,7
50
1,5
23,7
50
-
-
2020
1,5
00,0
00
3
7,5
00
1,5
37,5
00
-
-
TO
TA
L
$
9,7
50,0
00
$
1,0
78
,32
3
$ 1
0,8
28,3
23
$
70
,21
3
$
975,0
00
Bu
sin
ess-
Typ
e A
ctiv
itie
s
F
isca
l Y
ear
Endin
g
Deb
t C
erti
fica
tes,
Ser
ies
2005B
IEP
A L
oan
s
June
30,
Pri
nci
pal
In
tere
st
Tota
l P
rinci
pal
In
tere
st
Tota
l
2013
$
160,0
00
$
27,7
80
$
18
7,7
80
$
652,8
28
$
29
8,2
52
$
951,0
80
2014
165,0
00
21,3
80
1
86
,38
0
669,2
50
2
81
,83
0
951,0
80
2015
170,0
00
14,6
15
1
84
,61
5
686,0
85
2
64
,99
5
951,0
80
2016
180,0
00
7,5
60
1
87
,56
0
703,3
45
2
47
,73
5
951,0
80
2017
-
-
-
721,0
39
2
30
,04
1
951,0
80
2018
-
-
-
739,1
77
2
11
,90
3
951,0
80
2019
-
-
-
757,7
72
1
93
,30
8
951,0
80
2020
-
-
-
776,8
35
1
74
,24
5
951,0
80
2021
-
-
-
796,3
78
1
54
,70
2
951,0
80
2022
-
-
-
816,4
11
1
34
,66
9
951,0
80
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
6.
LO
NG
-TE
RM
DE
BT
(C
onti
nued
)
g.
Deb
t S
ervic
e R
equir
emen
ts t
o M
aturi
ty (
Conti
nued
)
Busi
nes
s-T
ype
Act
ivit
ies
(Conti
nued
)
F
isca
l Y
ear
Endin
g
Deb
t C
erti
fica
tes,
Ser
ies
2005B
IEP
A L
oan
s
June
30,
Pri
nci
pal
In
tere
st
Tota
l P
rinci
pal
In
tere
st
Tota
l
2023
$
- $
- $
- $
836,9
49
$
11
4,1
31
$
951,0
80
2024
-
-
-
858,0
04
9
3,0
76
951,0
80
2025
-
-
-
723,2
63
7
1,4
92
794,7
55
2026
-
-
-
583,1
77
5
5,2
51
638,4
28
2027
-
-
-
597,8
47
4
0,5
81
638,4
28
2028
-
-
-
612,8
87
2
5,5
41
638,4
28
2029
-
-
-
561,0
38
1
0,1
27
571,1
65
TO
TA
L
$
675,0
00
$
71,3
35
$
74
6,3
35
$ 1
2,0
92,2
85
$
2,6
01
,87
9
$ 1
4,6
94,1
64
h.
Chan
ges
in L
ong-T
erm
Lia
bil
itie
s
Duri
ng t
he
fisc
al y
ear
the
foll
ow
ing c
han
ges
occ
urr
ed i
n l
iabil
itie
s re
port
ed i
n t
he
gover
nm
enta
l ac
tivit
ies:
Bal
ance
July
1
Issu
ance
s**
Ret
ired
Bal
ance
June
30
Curr
ent
Po
rtio
n
Gen
eral
ob
ligat
ion b
ond
s
p
ayab
le
$
2,0
50
,00
0
$
-
$
67
0,0
00
$
1,3
80
,00
0
$
71
0,0
00
Gen
eral
ob
ligat
ion
alt
ernat
e
re
ven
ue
sourc
e b
ond
s
-
9
,75
0,0
00
-
9
,75
0,0
00
-
Gen
eral
ob
ligat
ion c
apit
al
ap
pre
ciat
ion b
ond
s
88
0,6
24
24
,16
3
-
9
04
,78
7
-
No
te p
ayab
le
1
,35
0,0
00
-
10
0,0
00
1,2
50
,00
0
1
00
,00
0
Un
amo
rtiz
ed p
rem
ium
13
0,4
04
33
9,1
56
39
,66
7
4
29
,89
3
-
*N
et o
ther
po
stem
plo
ym
ent
b
enef
it o
bli
gat
ion
5
16
,43
0
1
53
,41
1
-
6
69
,84
1
-
*N
et p
ensi
on o
bli
gat
ion
62
4,1
51
11
,85
0
-
6
36
,00
1
-
*C
om
pen
sate
d a
bse
nce
s
47
7,7
59
46
6,1
80
42
5,8
59
51
8,0
80
47
0,3
45
TO
TA
L G
OV
ER
NM
EN
TA
L
A
CT
IVIT
IES
$
6,0
29
,36
8
$ 1
0,7
44
,76
0
$
1,2
35
,52
6
$ 1
5,5
38
,60
2
$
1,2
80
,34
5
*T
hes
e li
abil
itie
s ar
e gen
eral
ly l
iquid
ated
by t
he
gen
eral
fund
and t
he
inte
rnal
ser
vic
e
fund.
**Is
suan
ces
incl
ude
$24,1
63 f
or
curr
ent
yea
r ac
cret
ion.
A-17
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
6.
LO
NG
-TE
RM
DE
BT
(C
onti
nued
)
h.
Chan
ges
in L
ong-T
erm
Lia
bil
itie
s (C
onti
nued
)
Duri
ng t
he
fisc
al y
ear
the
foll
ow
ing c
han
ges
occ
urr
ed i
n l
iabil
itie
s re
port
ed i
n t
he
busi
nes
s-ty
pe
acti
vit
ies:
Bal
ance
July
1
Issu
ance
s
Ret
ired
Bal
ance
June
30
Curr
ent
Po
rtio
n
Deb
t ce
rtif
icat
es p
ayab
le
$
82
5,0
00
$
-
$
15
0,0
00
$
6
75
,00
0
$
16
0,0
00
IEP
A l
oan
s
12
,72
9,0
92
-
63
6,8
08
12
,09
2,2
84
65
2,8
27
Net
oth
er p
ost
emp
loym
ent
b
enef
it o
bli
gat
ion
1
13
,91
8
5
8,6
17
-
1
72
,53
5
-
Com
pen
sate
d a
bse
nce
s
14
7,1
13
10
7,9
60
11
7,5
17
13
7,5
56
10
8,6
65
TO
TA
L B
US
INE
SS
-TY
PE
A
CT
IVIT
IES
$ 1
3,8
15
,12
3
$
16
6,5
77
$
90
4,3
25
$ 1
3,0
77
,37
5
$
92
1,4
92
i.
L
egal
Deb
t M
argin
The
sched
ule
of
the
City
’s le
gal
deb
t m
argin
as
of
June
30, 2012 i
s as
foll
ow
s:
A
SS
ES
SE
D V
AL
UA
TIO
N -
2011
(L
ates
t In
form
atio
n A
vai
lab
le)
$
64
8,8
94
,49
5
Sta
tuto
ry D
ebt
Lim
itat
ion
(8
.62
5%
of
Ass
esse
d V
alu
atio
n)
$
55
,96
7,1
50
Les
s G
ener
al O
bli
gat
ion
Bo
nd
s
(1,3
80
,00
0)
Les
s G
ener
al O
bli
gat
ion
Cap
ital
Ap
pre
ciat
ion
Bo
nd
s
(90
4,7
87
)
LE
GA
L D
EB
T M
AR
GIN
$
5
3,6
82
,36
3
j.
C
on
du
it D
ebt
The
Cit
y,
thro
ugh p
arti
cipat
ion i
n a
n i
nte
rgover
nm
enta
l ag
reem
ent
wit
h s
ever
al o
ther
Illi
no
is m
un
icip
alit
ies,
has
iss
ued
$2
50
,00
0,0
00
in
Co
llat
eral
ized
Sin
gle
Fam
ily
Mort
gag
e R
even
ue
Bonds
to p
rovid
e fi
nan
cial
ass
ista
nce
to l
ow
and m
oder
ate
inco
me
resi
den
ts f
or
the
purc
has
e of
single
fam
ily h
om
es. T
he
bonds
are
secu
red b
y
the
pro
per
ty f
inan
ced a
nd a
re p
ayab
le s
ole
ly f
rom
the
pay
men
ts r
ecei
ved
on t
he
under
lyin
g m
ort
gag
e lo
ans.
U
pon r
epay
men
t of
the
bonds,
ow
ner
ship
of
the
subje
ct
pro
per
ty i
s tr
ansf
erre
d t
o t
he
purc
has
er.
None
of
the
par
tici
pat
ing m
unic
ipal
itie
s ar
e
obli
gat
ed i
n a
ny m
anner
for
the
repay
men
t of
the
bonds
and, ac
cord
ingly
, no l
iabil
ity
is r
ecord
ed i
n t
he
acco
mpan
yin
g f
inan
cial
sta
tem
ents
.
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
7.
INT
ER
FU
ND
AC
CO
UN
TS
Due
from
/to o
ther
funds
at J
une
30
, 2
01
2 c
on
sist
of
the
foll
ow
ing:
D
ue
Fro
m
Due
To
Gen
eral
N
on
maj
or
Go
ver
nm
enta
l $
3
6,5
89
$
-
N
on
maj
or
Go
ver
nm
enta
l
G
ener
al
-
3
6,5
89
T
OT
AL
$
3
6,5
89
$
3
6,5
89
T
he
purp
ose
s of
signif
ican
t due
from
/to o
ther
funds
are
as f
oll
ow
s:
•
$36,5
89 d
ue
to t
he
Gen
eral
Fund f
rom
a N
onm
ajor
Gover
nm
enta
l F
und t
o c
over
TIF
ex
pen
dit
ure
s pai
d f
rom
the
Gen
eral
Fund.
A
dvan
ces
to/f
rom
oth
er f
unds
at J
une
30, 20
12 c
onsi
sted
of
the
foll
ow
ing:
Advan
ce
Fro
m
Ad
van
ce
To
Gen
eral
W
ater
wo
rks
and
Sew
erag
e
$
- $
2
,55
2,0
84
Wat
erw
ork
s an
d S
ewer
age
Gen
eral
2
,55
2,0
84
-
T
OT
AL
$
2
,55
2,0
84
$
2
,55
2,0
84
The
purp
ose
of
the
advan
ce t
o/f
rom
oth
er f
un
ds
is a
s fo
llo
ws:
•
$2,5
52,0
84 a
dvan
ce b
etw
een t
he
Gen
eral
Fund a
nd t
he
Wat
erw
ork
s an
d S
ewer
age
Fund. T
his
advan
ce r
epre
sents
a l
oan
giv
en b
y t
he
Gen
eral
Fund t
o s
upple
men
t th
e W
ater
work
s an
d S
ewer
age
Fund d
ue
to e
xpen
ses
exce
edin
g r
even
ues
.
Inte
rfund t
ransf
ers
duri
ng t
he
yea
r en
ded
June
30, 2012 c
onsi
sted
of
the
foll
ow
ing:
Tra
nsf
er I
n
Tra
nsf
er O
ut
G
ener
al
$
179,3
30
$
717,5
76
Cap
ital
Pro
ject
s F
un
d
1,1
06,2
68
-
No
nm
ajo
r G
over
nm
enta
l F
un
ds
-
389,2
05
Wat
erw
ork
s an
d S
ewer
age
-
178,8
17
T
OT
AL
$
1,2
85,5
98
$
1,2
85,5
98
A-18
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
7.
INT
ER
FU
ND
AC
CO
UN
TS
(C
onti
nued
)
T
he
purp
ose
s of
signif
ican
t in
terf
und t
ransf
ers
are
as f
oll
ow
s:
•
$388,6
92 t
ransf
erre
d t
o t
he
Cap
ital
Pro
ject
s F
und f
rom
a N
onm
ajor
Gover
nm
enta
l
Fund t
o c
lose
out
the
fund.
•
$100,0
00 t
ransf
erre
d t
o t
he
Cap
ital
Pro
ject
s F
und f
rom
the
Gen
eral
Fund f
or
a
pay
men
t on a
note
pay
able
.
•
$617,5
76 t
ransf
erre
d t
o t
he
Cap
ital
Pro
ject
s F
und f
rom
the
Gen
eral
Fund f
or
upco
min
g c
apit
al p
roje
cts.
•
$178,8
17 t
ransf
erre
d t
o t
he
Gen
eral
Fund f
rom
the
Wat
erw
ork
s an
d S
ewer
age
Fund.
This
tra
nsf
er w
as m
ade
to c
over
adm
inis
trat
ive
expen
dit
ure
s th
at p
rovid
ed b
enef
its
to
all
city
dep
artm
ents
.
8.
DE
FIN
ED
BE
NE
FIT
PE
NS
ION
PL
AN
S
T
he
Cit
y c
ontr
ibute
s to
tw
o d
efin
ed b
enef
it p
ensi
on p
lans:
the
Illi
nois
Munic
ipal
Ret
irem
ent
Fund (
IMR
F),
an a
gen
t m
ult
iple
-em
plo
yer
publi
c em
plo
yee
ret
irem
ent
syst
em
and t
he
Poli
ce P
ensi
on
Pla
n w
hic
h i
s a
single
-em
plo
yer
pen
sion p
lan. T
he
ben
efit
s, b
enef
it
level
s, e
mplo
yee
contr
ibuti
ons
and e
mplo
yer
contr
ibuti
ons
for
all
pla
ns
are
gover
ned
by
Illi
no
is C
om
pil
ed S
tatu
tes
and
can
on
ly b
e am
ended
by t
he
Illi
nois
Gen
eral
Ass
embly
.
None
of
the
pen
sion p
lans
issu
e se
par
ate
rep
ort
s o
n t
he
pen
sio
n p
lan
s.
Ho
wev
er,
IMR
F
does
iss
ue
a publi
cly a
vai
lable
rep
ort
that
incl
udes
fin
anci
al s
tate
men
ts a
nd s
upple
men
tary
info
rmat
ion f
or
the
pla
n a
s a
whole
, but
not
for
indiv
idual
em
plo
yer
s.
That
rep
ort
can
be
ob
tain
ed f
rom
IM
RF
, 2
21
1 Y
ork
Ro
ad,
Su
ite
50
0,
Oak
Bro
ok
, Il
lin
ois
60
52
3.
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
8.
DE
FIN
ED
BE
NE
FIT
PE
NS
ION
PL
AN
S (
Conti
nued
)
a.
P
lan D
escr
ipti
ons
Illi
no
is M
un
icip
al R
etir
emen
t F
un
d
All
em
plo
yee
s (o
ther
than
those
cover
ed b
y t
he
Po
lice
Pen
sio
n P
lan
) h
ired
in
posi
tions
that
mee
t or
exce
ed t
he
pre
scri
bed
annual
hourl
y s
tandar
d m
ust
be
enro
lled
in I
MR
F a
s p
arti
cip
atin
g m
emb
ers.
IM
RF
pro
vid
es t
wo t
iers
of
pen
sion b
enef
its.
Em
plo
yee
s hir
ed p
rior
to J
anuar
y 1, 2011, ar
e el
igib
le f
or
Tie
r 1 b
enef
its.
F
or
Tie
r 1
emplo
yee
s, p
ensi
on b
enef
its
ves
t af
ter
eight
yea
rs o
f se
rvic
e.
Par
tici
pat
ing m
ember
s
who r
etir
e at
age
55 (
reduce
d b
enef
its)
or
afte
r ag
e 60 (
full
ben
efit
s) w
ith e
ight
yea
rs
of
cred
ited
ser
vic
e ar
e en
titl
ed t
o a
n a
nnual
ret
irem
ent
ben
efit
, pay
able
month
ly f
or
life
, in
an a
mount
equal
to 1
2/3
% o
f th
eir
final
rat
e of
earn
ings,
for
each
yea
r of
cred
ited
ser
vic
e up t
o 1
5 y
ears
, an
d 2
% f
or
each
yea
r th
erea
fter
. E
mplo
yee
s hir
ed o
n
or
afte
r Ja
nuar
y 1
, 2011, ar
e el
igib
le f
or
Tie
r 2 b
enef
its.
F
or
Tie
r 2 e
mplo
yee
s,
pen
sion b
enef
its
ves
t af
ter
ten y
ears
of
serv
ice.
P
arti
cipat
ing m
ember
s w
ho r
etir
e at
age
62 (
reduce
d b
enef
its)
or
afte
r ag
e 67 (
full
ben
efit
s) w
ith t
en y
ears
of
cred
ited
serv
ice
are
enti
tled
to a
n a
nnual
ret
irem
ent
ben
efit
, pay
able
month
ly f
or
life
, in
an
amount
equal
to 1
2/3
% o
f th
eir
final
rat
e of
earn
ings,
for
each
yea
r of
cred
ited
serv
ice
up t
o 1
5 y
ears
, an
d 2
% f
or
each
yea
r th
erea
fter
. I
MR
F a
lso p
rovid
es d
eath
and d
isab
ilit
y b
enef
its.
T
hes
e ben
efit
pro
vis
ions
and a
ll o
ther
req
uir
emen
ts a
re
esta
bli
shed
by s
tate
sta
tute
. P
arti
cipat
ing m
ember
s ar
e re
quir
ed t
o c
ontr
ibute
4.5
% o
f
thei
r an
nual
sal
ary
to I
MR
F. T
he
Cit
y i
s re
quir
ed t
o c
ontr
ibute
the
rem
ainin
g
amounts
nec
essa
ry t
o f
und I
MR
F a
s sp
ecif
ied b
y s
tatu
te.
The
emplo
yer
contr
ibuti
on
rate
for
the
cale
ndar
yea
r en
ded
2011 w
as 1
1.6
4%
of
cover
ed p
ayro
ll.
Poli
ce P
ensi
on P
lan
Poli
ce s
worn
per
sonnel
are
cover
ed b
y t
he
Po
lice
Pen
sio
n P
lan
. A
lth
ou
gh
th
is i
s a
single
-em
plo
yer
pen
sion p
lan, th
e def
ined
ben
efit
s an
d e
mplo
yee
and e
mplo
yer
contr
ibuti
on l
evel
s ar
e gover
ned
by I
llin
ois
Com
pil
ed S
tatu
tes
(40 I
LC
S 5
/3-1
) an
d
may
be
amen
ded
only
by t
he
Illi
nois
leg
isla
ture
. T
he
Cit
y a
ccounts
for
the
Poli
ce
Pen
sio
n P
lan
as
a p
ensi
on
tru
st f
un
d.
A-19
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
8.
DE
FIN
ED
BE
NE
FIT
PE
NS
ION
PL
AN
S (
Conti
nued
)
a.
P
lan
Des
crip
tio
ns
(Co
nti
nu
ed)
Poli
ce P
ensi
on P
lan
(C
onti
nued
)
At
Jun
e 3
0,
20
11
, th
e P
oli
ce P
ensi
on P
lan m
ember
ship
consi
sted
of:
R
etir
ees
and
ben
efic
iari
es c
urr
entl
y r
ecei
vin
g b
enef
its
an
d t
erm
inat
ed e
mp
loyee
s en
titl
ed t
o b
enef
its
bu
t n
ot
yet
rec
eivin
g t
hem
12
Cu
rren
t em
plo
yee
s
V
este
d
2
4
N
on
ves
ted
13
TO
TA
L
4
9
N
um
ber
of
par
tici
pat
ing e
mp
loyer
s
1
The
Poli
ce P
ensi
on P
lan p
rovid
es r
etir
emen
t ben
efit
s as
wel
l as
dea
th a
nd d
isab
ilit
y
ben
efit
s.
Tie
r 1 e
mplo
yee
s (t
hose
hir
ed a
s a
poli
ce o
ffic
er p
rior
to J
anuar
y 1, 2011)
atta
inin
g t
he
age
of
50 o
r old
er w
ith 2
0 o
r m
ore
yea
rs o
f cr
edit
able
ser
vic
e ar
e
enti
tled
to r
ecei
ve
an a
nnual
ret
irem
ent
ben
efit
equal
to o
ne-
hal
f of
the
sala
ry
atta
ched
to t
he
rank h
eld o
n t
he
last
day
of
serv
ice,
or
for
one
yea
r pri
or
to t
he
last
day
, w
hic
hev
er i
s gre
ater
. T
he
annual
ben
efit
shal
l be
incr
ease
d b
y 2
.50%
of
such
sala
ry f
or
each
addit
ional
yea
r of
serv
ice
over
20 y
ears
up t
o 3
0 y
ears
to a
max
imum
of
75.0
0%
of
such
sal
ary.
E
mplo
yee
s w
ith a
t le
ast
eight
yea
rs b
ut
less
than
20 y
ears
of
cred
ited
ser
vic
e m
ay r
etir
e at
or
afte
r ag
e 60 a
nd r
ecei
ve
a re
duce
d b
enef
it. T
he
month
ly b
enef
it o
f a
poli
ce o
ffic
er w
ho r
etir
ed w
ith 2
0 o
r m
ore
yea
rs o
f se
rvic
e af
ter
Januar
y 1
, 1977 s
hal
l be
incr
ease
d a
nnual
ly, fo
llow
ing t
he
firs
t an
niv
ersa
ry d
ate
of
reti
rem
ent
and b
e pai
d u
pon r
each
ing t
he
age
of
at l
east
55 y
ears
, by 3
.00%
of
the
ori
gin
al p
ensi
on a
nd 3
.00%
com
pounded
annual
ly t
her
eaft
er.
Tie
r 2 e
mplo
yee
s (t
hose
hir
ed o
n o
r af
ter
Januar
y 1
, 2011)
atta
inin
g t
he
age
of
55 o
r
old
er w
ith t
en o
r m
ore
yea
rs o
f cr
edit
able
ser
vic
e ar
e en
titl
ed t
o r
ecei
ve
an a
nnual
reti
rem
ent
ben
efit
equal
to t
he
aver
age
month
ly s
alar
y obta
ined
by d
ivid
ing t
he
tota
l
sala
ry o
f th
e poli
ce o
ffic
er d
uri
ng t
he
96 c
on
secu
tiv
e m
on
ths
of
serv
ice
wit
hin
th
e
last
120 m
onth
s of
serv
ice
in w
hic
h t
he
tota
l sa
lary
was
the
hig
hes
t by t
he
num
ber
of
mon
ths o
f ser
vice
in th
at p
erio
d. P
olic
e of
ficer
s’ sa
lary
for p
ensi
on p
urpo
ses i
s ca
pped
at
$106,8
00, plu
s th
e le
sser
of
½ o
f th
e an
nual
chan
ge
in t
he
Con
sum
er P
rice
Index
or
3.0
0%
com
pounded
. T
he
annual
ben
efit
shal
l be
incr
ease
d b
y 2
.50%
of
such
sal
ary f
or
each
addit
ional
yea
r of
serv
ice
over
20 y
ears
up t
o 3
0 y
ears
to a
max
imum
of
75.0
0%
of
such
sal
ary.
E
mplo
yee
s w
ith a
t le
ast
ten y
ears
may
ret
ire
at
or
afte
r ag
e 50 a
nd r
ecei
ve
a re
duce
d b
enef
it (
i.e.
, ½
% f
or
each
month
under
55).
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
8.
DE
FIN
ED
BE
NE
FIT
PE
NS
ION
PL
AN
S (
Conti
nued
)
a.
P
lan D
escr
ipti
ons
(Conti
nued
)
Poli
ce P
ensi
on P
lan
(C
onti
nued
)
The
month
ly b
enef
it o
f a
Tie
r 2 p
oli
ce o
ffic
er s
hal
l b
e in
crea
sed a
nnual
ly a
t ag
e 60
on t
he
Januar
y 1
st a
fter
the
poli
ce o
ffic
er r
etir
es, or
the
firs
t an
niv
ersa
ry o
f th
e
pen
sion s
tart
ing d
ate,
whic
hev
er i
s la
ter.
N
onco
mpoundin
g i
ncr
ease
s occ
ur
annual
ly,
each
Jan
uar
y t
her
eaft
er. T
he
incr
ease
is
the
less
er o
f 3.0
0%
or
½ o
f th
e ch
ange
in t
he
Consu
mer
Pri
ce I
ndex
for
the
pro
ceed
ing c
alen
dar
yea
r.
Em
plo
yee
s ar
e re
quir
ed b
y I
LC
S t
o c
ontr
ibute
9.9
1%
of
thei
r bas
e sa
lary
to t
he
Poli
ce P
ensi
on P
lan. I
f an
em
plo
yee
lea
ves
cover
ed e
mplo
ym
ent
wit
h l
ess
than
20
yea
rs o
f se
rvic
e, a
ccum
ula
ted e
mplo
yee
contr
ibuti
ons
may
be
refu
nded
wit
hout
accu
mula
ted i
nte
rest
. T
he
Cit
y i
s re
quir
ed t
o c
ontr
ibute
the
rem
ainin
g a
mounts
nec
essa
ry t
o f
inan
ce t
he
Poli
ce P
ensi
on P
lan
, in
clu
din
g t
he
cost
s o
f ad
min
iste
rin
g t
he
pla
n, as
act
uar
iall
y d
eter
min
ed b
y a
n e
nro
lled
act
uar
y.
Eff
ecti
ve
Januar
y 1
, 2011, th
e
Cit
y h
as u
nti
l th
e yea
r 2
04
0 t
o f
un
d 9
0%
the
pas
t se
rvic
e co
st f
or
the
Po
lice
Pen
sio
n
Pla
n. F
or
the
yea
r en
ded
June
30, 2012, th
e C
ity’s
con
tribu
tion
was
25.2
9%
of
cover
ed p
ayro
ll.
The
pla
n i
s ac
counte
d f
or
on t
he
econom
ic r
esourc
es m
easu
rem
ent
focu
s an
d t
he
accr
ual
bas
is o
f ac
counti
ng. E
mplo
yer
and e
mplo
yee
contr
ibuti
ons
are
reco
gniz
ed
when
ear
ned
in t
he
yea
r th
at t
he
contr
ibuti
ons
are
requir
ed, ben
efit
s an
d r
efunds
are
reco
gniz
ed a
s an
ex
pen
se a
nd l
iabil
ity w
hen
due
and p
ayab
le.
b.
Sig
nif
ican
t In
ves
tmen
ts
Ther
e w
ere
no i
nves
tmen
ts (
oth
er t
han
U.S
. G
over
nm
ent
guar
ante
ed o
bli
gat
ions
and
mutu
al f
unds)
in a
ny o
ne
org
aniz
atio
n t
hat
rep
rese
nt
5.0
0%
or
more
of
pla
n n
et a
sset
s
for
the
Po
lice
Pen
sio
n P
lan
. I
nfo
rmat
ion
fo
r IM
RF
is
no
t av
aila
ble
.
A-20
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
8.
DE
FIN
ED
BE
NE
FIT
PE
NS
ION
PL
AN
S (
Conti
nued
)
c.
A
nn
ual
Pen
sio
n C
ost
s
Em
plo
yer
contr
ibuti
ons
hav
e bee
n d
eter
min
ed a
s fo
llow
s:
Illi
no
is
Mu
nic
ipal
Ret
irem
ent
Po
lice
Pen
sio
n
Act
uar
ial
val
uat
ion
dat
e D
ecem
ber
31
,
20
09
Jun
e 3
0,
20
11
Act
uar
ial
cost
met
ho
d
En
try-a
ge
No
rmal
En
try-a
ge
No
rmal
Ass
et v
alu
atio
n m
eth
od
5
Yea
r
Sm
oo
thed
Mar
ket
Mar
ket
Am
ort
izat
ion
met
ho
d
Lev
el
Per
cen
tage
of
Pay
roll
Lev
el
Per
cen
tage
of
Pay
roll
Am
ort
izat
ion
per
iod
3
0 Y
ears
,
Open
22
Yea
rs,
Clo
sed
Sig
nif
ican
t ac
tuar
ial
assu
mp
tio
ns
a)
R
ate
of
retu
rn o
n p
rese
nt
7
.50
%
7.5
0%
an
d f
utu
re a
sset
s C
om
pounded
An
nu
ally
Com
pounded
An
nu
ally
b
) P
roje
cted
sal
ary i
ncr
ease
4
.00
%
5.5
0%
at
trib
uta
ble
to
in
flat
ion
C
om
pounded
C
om
pounded
A
nn
ual
ly
An
nu
ally
c)
A
dd
itio
nal
pro
ject
ed
.4
0%
to
10
.00
%
No
t A
vai
lab
le
sa
lary
in
crea
ses
for
sen
iori
ty/m
erit
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
8.
DE
FIN
ED
BE
NE
FIT
PE
NS
ION
PL
AN
S (
Conti
nued
)
c.
A
nnual
Pen
sion C
ost
s (C
onti
nued
)
Em
plo
yer
annual
pen
sion c
ost
s (A
PC
), a
ctual
contr
ibuti
ons
and t
he
net
pen
sion
obli
gat
ion (
NP
O)
are
as f
oll
ow
s.
The
NP
O i
s th
e cu
mula
tive
dif
fere
nce
bet
wee
n t
he
AP
C a
nd
th
e co
ntr
ibu
tio
ns
actu
ally
mad
e.
Fis
cal
Yea
r
Illi
no
is
Mu
nic
ipal
Ret
irem
ent
Po
lice
Pen
sion
An
nu
al p
ensi
on
co
sts
2012
$
35
7,3
19
$
759,7
93
(A
PC
) 2011
3
74
,10
4
712,0
53
2010
3
53
,90
2
586,9
54
Act
ual
co
ntr
ibu
tio
n
2012
$
35
7,3
19
$
747,9
43
2011
3
74
,10
4
703,4
15
2010
3
53
,90
2
531,5
59
Per
cen
tage
of
AP
C
2012
10
0.0
%
98
.4%
co
ntr
ibu
ted
2011
10
0.0
%
98
.8%
2010
10
0.0
%
90
.6%
NP
O (
asse
t)
2012
$
- $
636,0
01
2011
-
624,1
51
2010
-
615,5
13
T
he
NP
O a
t Ju
ne
30,
2012 f
or
the
Poli
ce P
ensi
on
Pla
n h
as b
een c
alcu
late
d a
s
foll
ow
s:
Po
lice
Pen
sion
An
nu
al r
equ
ired
co
ntr
ibu
tio
n
$
747,9
43
Inte
rest
on
net
pen
sio
n o
bli
gat
ion
46,8
11
Ad
just
men
t to
an
nu
al r
equ
ired
co
ntr
ibu
tio
n
(3
4,9
61
)
An
nu
al p
ensi
on
co
st
759,7
93
Co
ntr
ibu
tio
ns
mad
e
747,9
43
Incr
ease
in
net
pen
sio
n o
bli
gat
ion
(as
set)
11,8
50
Net
pen
sio
n o
bli
gat
ion
(as
set)
, b
egin
nin
g o
f yea
r
624,1
51
NE
T P
EN
SIO
N O
BL
IGA
TIO
N (
AS
SE
T),
EN
D O
F Y
EA
R
$
636,0
01
A-21
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
8.
DE
FIN
ED
BE
NE
FIT
PE
NS
ION
PL
AN
S (
Conti
nued
)
d.
Funded
Sta
tus
T
he
funded
sta
tus
of
the
pla
ns
as o
f Ju
ne
30, 2012, bas
ed o
n a
ctuar
ial
val
uat
ions
per
form
ed a
s of
Dec
ember
31, 2011 a
nd J
une
30, 2012, is
as
foll
ow
s.
The
actu
aria
l as
sum
pti
ons
use
d t
o d
eter
min
e th
e fu
nded
sta
tus
of
the
pla
ns
are
the
sam
e ac
tuar
ial
assu
mpti
ons
use
d t
o d
eter
min
e th
e em
plo
yer
AP
C o
f th
e pla
ns
as d
iscl
ose
d i
n N
ote
9-c
:
Il
lin
ois
M
un
icip
al
Ret
irem
ent
P
oli
ce
Pen
sio
n
A
ctu
aria
l ac
cru
ed l
iab
ilit
y (
AA
L)
$
6,9
94
,10
2
$
20
,58
0,9
31
A
ctu
aria
l val
ue
of
pla
n a
sset
s
4,9
98
,54
1
1
3,3
41
,34
0
Un
fun
ded
act
uar
ial
accr
ued
lia
bil
ity (
UA
AL
)
1,9
95
,56
1
7
,23
9,5
91
F
un
ded
rat
io (
actu
aria
l val
ue
of
pla
n a
sset
s/A
AL
)
71
.47
%
6
4.8
2%
C
over
ed p
ayro
ll (
acti
ve
pla
n m
emb
ers)
$
3
,12
5,2
26
$
2
,95
7,3
17
U
AA
L a
s a
per
centa
ge
of
cover
ed p
ayro
ll
6
3.8
5%
24
4.8
0%
See
the
sched
ule
s of
fundin
g p
rogre
ss i
n t
he
requir
ed s
upple
men
tary
info
rmat
ion
imm
edia
tely
foll
ow
ing t
he
note
s to
fin
anci
al s
tate
men
ts f
or
addit
ional
info
rmat
ion
rela
ted t
o t
he
funded
sta
tus
of
the
pla
ns.
9.
OT
HE
R P
OS
TE
MP
LO
YM
EN
T B
EN
EF
ITS
Pla
n D
escr
ipti
on
In
ad
dit
ion
to
pro
vid
ing t
he
pen
sio
n b
enef
its
des
crib
ed, th
e C
ity p
rovid
es p
ost
emplo
ym
ent
hea
lth b
enef
its
(OP
EB
) fo
r re
tire
d e
mplo
yee
s th
rough a
sin
gle
-em
plo
yer
def
ined
ben
efit
pla
n. T
he
ben
efit
s, b
enef
it l
evel
s, e
mplo
yee
contr
ibuti
ons
and e
mplo
yer
contr
ibuti
ons
are
gover
ned
by t
he
Cit
y a
nd c
an b
e am
ended
by t
he
Cit
y t
hro
ugh i
ts p
erso
nnel
man
ual
and
unio
n c
ontr
acts
. T
he
pla
n d
oes
not
issu
e a
separ
ate
report
.
B
enef
its
Pro
vid
ed
T
he
Cit
y p
rovid
es p
ost
emplo
ym
ent
hea
lth c
are
ben
efit
s to
its
ret
iree
s.
To b
e el
igib
le f
or
ben
efit
s, a
n e
mplo
yee
must
qual
ify fo
r ret
irem
ent u
nder
one
of t
he C
ity’s
retir
emen
t pla
ns
or
mee
t C
OB
RA
req
uir
emen
ts.
A
ll h
ealt
h c
are
ben
efit
s ar
e pro
vid
ed th
roug
h th
e C
ity’s
hea
lth i
nsu
rance
pla
n. T
he
ben
efit
le
vel
s ar
e th
e sa
me
as t
hose
aff
ord
ed t
o a
ctiv
e em
plo
yee
s.
Ben
efit
s in
clude
gen
eral
in
pat
ient
and o
utp
atie
nt
med
ical
ser
vic
es;
men
tal,
ner
vous
and s
ubst
ance
abuse
car
e; v
isio
n
care
; den
tal
care
and p
resc
ripti
ons.
U
pon a
ret
iree
rea
chin
g a
ge
65 y
ears
of
age,
Med
icar
e be
com
es th
e pr
imar
y in
sure
r and
the
City
’s p
lan
beco
mes
seco
ndar
y.
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
9.
OT
HE
R P
OS
TE
MP
LO
YM
EN
T B
EN
EF
ITS
(C
onti
nued
)
M
ember
ship
A
t Ju
ne
30, 2012, m
ember
ship
consi
sted
of:
Ret
iree
s an
d b
enef
icia
ries
curr
entl
y r
ecei
vin
g
ben
efit
s
8
Ter
min
ated
em
plo
yee
s en
titl
ed
to
ben
efit
s but
not
yet
rec
eivin
g t
hem
-
Act
ive
emplo
yee
s
13
3
TO
TA
L
1
41
Par
tici
pat
ing e
mp
loyer
s
1
F
undin
g P
oli
cy
T
he
Cit
y n
egoti
ates
the
contr
ibuti
on p
erce
nta
ges
bet
wee
n t
he
Cit
y a
nd e
mplo
yee
s th
rough
the
unio
n c
ontr
acts
and p
erso
nnel
poli
cy. R
etir
ees
contr
ibute
0%
-100%
of
the
pre
miu
m
and t
he
Cit
y c
ontr
ibute
s an
y r
emai
nder
to c
over
the
cost
of
pro
vid
ing t
he
ben
efit
s to
the
reti
rees
via
the
insu
red p
lan.
Ret
iree
s ar
e re
sponsi
ble
for
any p
rem
ium
incr
ease
s af
ter
reti
rem
ent.
O
nce
eli
gib
le f
or
Med
icar
e, r
etir
ees
pay
the
full
am
ount
of
the
Med
icar
e
supple
men
t pre
miu
m. F
or
the
fisc
al y
ear
ended
June
30, 2012, re
tire
es c
ontr
ibute
d
$3
4,8
93
an
d t
he
Cit
y c
on
trib
ute
d $
11
1,4
83
. A
ctiv
e em
plo
yee
s do n
ot
contr
ibute
to t
he
pla
n u
nti
l re
tire
men
t.
A
nn
ual
OP
EB
Co
sts
and
Net
OP
EB
Ob
ligat
ion
Th
e C
ity’s
ann
ual O
PEB
cos
t, th
e pe
rcen
tage
of a
nnua
l OPE
B c
ost c
ontri
bute
d to
the
plan
an
d t
he
net
OP
EB
obli
gat
ion w
as a
s fo
llow
s:
F
isca
l
Yea
r
Ended
Annual
OP
EB
Cost
Em
plo
yer
Co
ntr
ibu
tio
ns
Per
cen
tage
of
Annual
OP
EB
Cost
Co
ntr
ibu
ted
Net
OP
EB
Obli
gat
ion
Jun
e 3
0,
20
10
$
3
20
,68
5
$
11
1,4
83
34
.76
%
$
41
5,5
95
Jun
e 3
0,
20
11
32
6,2
36
11
1,4
83
34
.17
%
6
30
,34
8
Jun
e 3
0,
20
12
32
3,5
11
11
1,4
83
34
.46
%
8
42
,37
6
A-22
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
9.
OT
HE
R P
OS
TE
MP
LO
YM
EN
T B
EN
EF
ITS
(C
onti
nued
)
An
nu
al O
PE
B C
ost
s an
d N
et O
PE
B O
bli
gat
ion
(C
on
tin
ued
)
The
net
OP
EB
obli
gat
ion (
NO
PE
BO
) as
June
30, 20
12 w
as c
alcu
late
d a
s fo
llow
s:
A
nnual
req
uir
ed c
ontr
ibuti
on
$
3
19
,30
9
Inte
rest
on n
et O
PE
B o
bli
gat
ion
25
,21
4
Adju
stm
ent
to a
nnual
req
uir
ed c
ontr
ibuti
on
(21,0
12)
An
nu
al O
PE
B c
ost
32
3,5
11
C
on
trib
uti
on
s m
ade
1
11
,48
3
Incr
ease
in
net
OP
EB
ob
ligat
ion
21
2,0
28
N
et O
PE
B o
bli
gat
ion
, beg
innin
g o
f ye
ar
6
30
,34
8
NE
T O
PE
B O
BL
IGA
TIO
N, E
ND
OF
YE
AR
$
8
42
,37
6
F
unded
Sta
tus
and F
undin
g P
rogre
ss. T
he
funded
sta
tus
of
the
pla
n a
s of
June
30, 2012,
was
as
foll
ow
s:
A
ctuar
ial
accr
ued
lia
bil
ity (
AA
L)
$
7,3
91
,15
6
Act
uar
ial
val
ue
of
pla
n a
sset
s
- U
nfu
nded
act
uar
ial
accr
ued
lia
bil
ity (
UA
AL
)
7,3
91
,15
6
Funded
rat
io (
actu
aria
l val
ue
of
pla
n a
sset
s/A
AL
)
0.0
0%
C
over
ed p
ayro
ll (
acti
ve
pla
n m
ember
s)
$
5,8
84
,32
7
UA
AL
as
a per
centa
ge
of
cover
ed p
ayro
ll
125.6
1%
Act
uar
ial
val
uat
ions
of
an o
ngoin
g p
lan i
nvolv
e es
tim
ates
of
the
val
ue
of
report
ed a
mounts
an
d a
ssum
pti
ons
about
the
pro
bab
ilit
y o
f occ
urr
ence
of
even
ts f
ar i
nto
the
futu
re.
Ex
ample
s in
clude
assu
mpti
ons
about
futu
re e
mplo
ym
ent,
mort
alit
y a
nd t
he
hea
lthca
re c
ost
tr
end. A
mounts
det
erm
ined
reg
ardin
g t
he
funded
sta
tus
of
the
pla
n a
nd t
he
annual
req
uir
ed
contr
ibuti
ons
of
the
emplo
yer
are
subje
ct t
o c
onti
nual
rev
isio
n a
s ac
tual
res
ult
s ar
e co
mpar
ed w
ith p
ast
expec
tati
ons
and n
ew e
stim
ates
are
mad
e ab
out
the
futu
re. T
he
sched
ule
of
fundin
g p
rogre
ss, pre
sente
d a
s re
quir
ed s
upple
men
tary
info
rmat
ion f
oll
ow
ing
the
note
s to
fin
anci
al s
tate
men
ts, pre
sents
mult
i-yea
r tr
end i
nfo
rmat
ion t
hat
show
s w
het
her
th
e ac
tuar
ial
val
ue
of
pla
n a
sset
s is
incr
easi
ng o
r dec
reas
ing o
ver
tim
e re
lati
ve
to t
he
actu
aria
l ac
crued
lia
bil
itie
s fo
r ben
efit
s.
A
ctuar
ial
Met
hods
and A
ssum
pti
ons.
P
roje
ctio
ns
of
ben
efit
s fo
r fi
nan
cial
rep
ort
ing
purp
ose
s ar
e bas
ed o
n t
he
subst
anti
ve
pla
n (
the
pla
n a
s under
stood b
y t
he
emplo
yer
and
pla
n m
ember
s) a
nd i
ncl
ude
the
types
of
ben
efit
s pro
vid
ed a
t th
e ti
me
of
each
val
uat
ion a
nd
the
his
tori
cal
pat
tern
of
shar
ing o
f ben
efit
cost
s bet
wee
n t
he
emplo
yer
and p
lan m
ember
s to
th
at p
oin
t.
The
actu
aria
l m
ethods
and a
ssum
pti
ons
use
d i
ncl
ude
tech
niq
ues
that
are
des
igned
to r
educe
short
-ter
m v
ola
tili
ty i
n a
ctuar
ial
accr
ued
lia
bil
itie
s an
d t
he
actu
aria
l val
ue
of
asse
ts, co
nsi
sten
t w
ith t
he
long-t
erm
per
spec
tive
of
the
calc
ula
tions.
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
NO
TE
S T
O F
INA
NC
IAL
ST
AT
EM
EN
TS
(C
onti
nued
)
9.
OT
HE
R P
OS
TE
MP
LO
YM
EN
T B
EN
EF
ITS
(C
onti
nued
)
A
nn
ual
OP
EB
Co
sts
and
Net
OP
EB
Ob
ligat
ion
(C
on
tin
ued
)
In
the
June
30, 2012 a
ctuar
ial
val
uat
ion, th
e en
try-a
ge
actu
aria
l co
st m
ethod w
as u
sed. T
he
actu
aria
l as
sum
pti
ons
incl
uded
a 4
.0%
inves
tmen
t ra
te o
f re
turn
(n
et o
f ad
min
istr
ativ
e
expen
ses)
and a
n a
nnual
hea
lthca
re c
ost
tre
nd r
ate
of
8.0
0%
init
iall
y, re
duce
d b
y
dec
rem
ents
to a
n u
ltim
ate
rate
of
6.0
0%
. B
oth
rat
es i
ncl
ude
a 3.0
% i
nfl
atio
n a
ssum
pti
on.
The
actu
aria
l val
ue
of
asse
ts w
as $
0. T
he p
lan’
s unf
unde
d ac
tuar
ial
accr
ued
lia
bil
ity i
s
bei
ng a
mort
ized
as
a le
vel
per
centa
ge
of
pro
ject
ed p
ayro
ll o
n a
n o
pen
30 y
ear
bas
is.
10
. R
ES
TR
ICT
ED
NE
T A
SS
ET
S/F
UN
D B
AL
AN
CE
A
t Ju
ne
30, 2012, fu
nd b
alan
ce/n
et a
sset
s re
stri
cted
for
oth
er p
urp
ose
s w
as c
om
pri
sed o
f
the
foll
ow
ing:
Forf
eitu
res
$
37
,02
9
DU
I fu
nd
1
4,2
40
Fed
eral
ass
et s
eizu
res
3
11
,21
0
Co
mm
ute
r lo
t
29
2,6
94
Sto
rmw
ater
man
agem
ent
1
34
,10
2
Road
rep
airs
and i
mpro
vem
ents
68
4,3
47
TO
TA
L
$
1,4
73
,62
2
A-23
U
AA
L/
(2)
(4)
(OA
AL
)
Act
uar
ial
Unfu
nded
as a
Act
uar
ial
(1)
Acc
rued
(3)
(Over
funded
)P
erce
nta
ge
Val
uat
ion
Act
uar
ial
Lia
bil
ity
Funded
UA
AL
/(5
)o
f C
over
ed
Dat
eV
alue
of
(AA
L)
Rat
io(O
AA
L)
Cover
edP
ayro
ll
Dec
ember
31,
Ass
ets
Entr
y-A
ge
(1)
/ (2
) (2
) -
(1)
Pay
roll
(4)
/ (5
)
20
06
5,0
51
,95
5$
5,5
33
,46
9$
91
.30
%4
81
,51
4$
2,7
44
,31
1$
17
.55
%
20
07
5,9
38
,20
2
6,6
19
,07
5
89
.71
%6
80
,87
3
3,1
65
,09
5
21
.51
%
20
08
4,5
06
,68
2
6,1
72
,24
9
73
.02
%1
,66
5,5
67
3,3
37
,74
8
49
.90
%
20
09
5,0
42
,74
8
7,3
06
,88
1
69
.01
%2
,26
4,1
33
3,6
38
,19
3
62
.23
%
20
10
4,3
79
,58
6
6,6
25
,82
1
66
.10
%2
,24
6,2
35
3,2
55
,50
5
69
.00
%
20
11
4,9
98
,54
1
6,9
94
,10
2
71
.47
%1
,99
5,5
61
3,1
25
,22
6
63
.85
%
Jun
e 3
0,
20
12
CIT
Y O
F L
OC
KP
OR
T,
ILL
INO
IS
SC
HE
DU
LE
OF
FU
ND
ING
PR
OG
RE
SS
ILL
INO
IS M
UN
ICIP
AL
RE
TIR
EM
EN
T F
UN
D
(2)
UA
AL
Act
uar
ial
(4)
as a
Act
uar
ial
(1)
Acc
rued
(3)
Un
fund
edP
erce
nta
ge
Val
uat
ion
Act
uar
ial
Lia
bil
ity
Fund
edA
AL
(5)
of
Co
ver
ed
Dat
eV
alu
e o
f(A
AL
)R
atio
(UA
AL
)C
over
edP
ayro
ll
June
30
, A
sset
sE
ntr
y-A
ge
(1)
/ (2
) (2
) -
(1)
Pay
roll
(4)
/ (5
)
20
07
9,7
28
,66
9$
1
3,0
91
,90
8$
74
.31
%3
,36
3,2
39
$
2,2
44
,74
4$
1
49
.83
%
20
08
9,7
12
,74
3
1
4,7
19
,07
9
65
.99
%5
,00
6,3
36
2,4
22
,82
3
2
06
.63
%
20
09
9,2
09
,42
2
1
6,2
11
,92
2
56
.81
%7
,00
2,5
00
2,5
38
,25
9
2
75
.88
%
20
10
10
,47
2,0
47
1
7,7
78
,79
9
58
.90
%7
,30
6,7
52
2,6
71
,01
2
2
73
.56
%
20
11
12
,42
1,9
62
1
9,0
53
,35
1
65
.20
%6
,63
1,3
89
2,7
59
,10
1
2
40
.35
%
20
12
13
,34
1,3
40
2
0,5
80
,93
1
64
.82
%7
,23
9,5
91
2,9
57
,31
7
2
44
.80
%
June
30
, 2
01
2
CIT
Y O
F L
OC
KP
OR
T,
ILL
INO
IS
SC
HE
DU
LE
OF
FU
ND
ING
PR
OG
RE
SS
PO
LIC
E P
EN
SIO
N F
UN
D
A-24
(2)
UA
AL
Act
uar
ial
(4)
as a
Act
uar
ial
(1)
Acc
rued
(3)
Unfu
nded
Per
centa
ge
Val
uat
ion
Act
uar
ial
Lia
bil
ity
Funded
AA
L(5
)of
Cover
ed
Dat
eV
alue
of
(AA
L)
Rat
io(U
AA
L)
Cover
edP
ayro
ll
Jun
e 3
0,
Ass
ets
Entr
y-A
ge
(1)
/ (2
) (2
) -
(1)
Pay
roll
(4)
/ (5
)
20
08
-$
3,1
35
,86
3$
0
.00
%3
,13
5,8
63
$
5,7
31
,42
4$
5
4.7
1%
20
09
-
3,3
73
,69
8
0
.00
%3
,37
3,6
98
5,9
60
,68
1
5
6.6
0%
2010
N/A
N/A
N/A
N/A
N/A
N/A
2011
N/A
N/A
N/A
N/A
N/A
N/A
20
12
-
7,3
91
,15
6
0
.00
%7
,39
1,1
56
5,8
84
,32
7
1
25
.61
%
N/A
- a
ctuar
ial
val
uat
ion n
ot
per
form
ed.C
ITY
OF
LO
CK
PO
RT
, IL
LIN
OIS
SC
HE
DU
LE
OF
FU
ND
ING
PR
OG
RE
SS
OT
HE
R P
OS
TE
MP
LO
YM
EN
T B
EN
EF
IT P
LA
N
June
30, 2012
Fis
cal
An
nu
al
Yea
rR
equ
ired
En
ded
Em
plo
yer
Co
ntr
ibu
tio
ns
Per
cen
tage
Jun
e 3
0,
Co
ntr
ibu
tio
ns
(AR
C)
Co
ntr
ibu
ted
20
07
27
6,3
52
$
27
6,3
52
$
10
0.0
0%
20
08
30
6,0
65
30
6,0
65
10
0.0
0%
20
09
31
2,0
79
31
2,0
79
10
0.0
0%
20
10
35
3,9
02
35
3,9
02
10
0.0
0%
20
11
37
4,1
04
37
4,1
04
10
0.0
0%
20
12
35
7,3
19
35
7,3
19
10
0.0
0%
Jun
e 3
0,
20
12
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
SC
HE
DU
LE
OF
EM
PL
OY
ER
CO
NT
RIB
UT
ION
S
ILL
INO
IS M
UN
ICIP
AL
RE
TIR
EM
EN
T F
UN
D
A-25
Fis
cal
An
nu
al
Yea
rR
equ
ired
En
ded
Em
plo
yer
Co
ntr
ibu
tio
ns
Per
cen
tage
Jun
e 3
0,
Co
ntr
ibu
tio
ns
(AR
C)
Co
ntr
ibu
ted
20
07
33
5,1
64
$
48
9,3
79
$
68
.49
%
20
08
41
4,6
14
33
5,1
64
12
3.7
0%
20
09
45
1,0
05
44
1,9
59
10
2.0
5%
20
10
53
1,5
59
57
4,2
10
92
.57
%
20
11
70
3,4
15
69
9,1
57
10
0.6
1%
20
12
74
7,9
43
74
7,9
43
10
0.0
0%
Jun
e 3
0,
20
12
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
SC
HE
DU
LE
OF
EM
PL
OY
ER
CO
NT
RIB
UT
ION
S
PO
LIC
E P
EN
SIO
N F
UN
D
Fis
cal
An
nu
al
Yea
rR
equ
ired
En
ded
Em
plo
yer
Co
ntr
ibu
tio
ns
Per
cen
tage
Jun
e 3
0,
Co
ntr
ibu
tio
ns
(AR
C)
Co
ntr
ibu
ted
20
09
97
,03
3$
30
3,4
26
$
31
.98
%
20
10
11
1,4
83
31
9,3
09
34
.91
%
20
11
11
1,4
83
31
9,3
09
34
.91
%
20
12
11
1,4
83
31
9,3
09
34
.91
%
CIT
Y O
F L
OC
KP
OR
T, IL
LIN
OIS
SC
HE
DU
LE
OF
EM
PL
OY
ER
CO
NT
RIB
UT
ION
S
OT
HE
R P
OS
TE
MP
LO
YM
EN
T B
EN
EF
IT P
LA
N
Jun
e 3
0,
20
12
A-26
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 __[Issuance Date]__, 2013
$__________ GENERAL OBLIGATION APPRECIATION LIMITED BONDS, SERIES 2013,
OF THE CITY OF LOCKPORT WILL COUNTY, ILLINOIS
Opinion of Bond Counsel
We have acted as bond counsel for, and have examined, among other things, certified copies of the proceedings of the City Council of, the City of Lockport, Will County, Illinois (the “Issuer”), in connection with the issuance of $__________ ($__________ Compound Accreted Value at Maturity) General Obligation Capital Appreciation Limited Bonds, Series 2013 (the “Bonds”), dated __[Issuance date]__, 2013 and compounding accreted value at the compounding rates and maturing annually on January 1 of each of the years, as follows: Year
Initial Principal
Amount($)
Compound Accreted Value
At Maturity($)
Compounding
Rate (%)
2016 2017 2018
*$__________ is the aggregate Compound Accreted Value at Maturity
The Bonds are not subject to call for optional redemption prior to maturity.
The Bonds are issuable in fully registered form in the denomination of $5,000 (Compound Accreted Value at Maturity) each or any authorized integral multiple thereof. The Bank of New York Mellon Trust Company, N.A., Chicago, Illinois, is the registrar (including its successors, the “Bond Registrar”), and the paying agent (including its successors, the “Paying Agent”) in connection with the Bonds. Payment of the maturing principal of the Bonds shall be made to the registered owners upon presentation and surrender to the Paying Agent.
For the prompt payment of the Bonds, the Issuer’s full faith, credit and resources is irrevocably pledged, and the Issuer has levied an ad valorem tax without limit as to rate or amount on all taxable property within the City of Lockport, Illinois to be extended and collected in each year to timely pay the applicable Compound Accreted Value at Maturity on the Bonds as set forth above.
The Bonds are issued by the Issuer for the purpose of financing all or a part of the costs of the construction, reconstruction, resurfacing and/or repair of various streets within the Municipality; for replacement, expansion, removal or enhancement of certain infrastructure and facilities; for financing the acquisition (and certain site improvement work, as applicable) of real estate and along South State Street, north and south of 7th Street, and on the east and west sides of South State Street, for resale or other disposition for construction retail, office or medium density residential uses, roads and infrastructure facilities and improvements, and related facilities, improvements and costs, pursuant to and in all respects in compliance with the provisions of the Illinois Municipal Code (Section 5/1-1-1 et seq. of Chapter 65 of the Illinois Compiled Statutes) and the Local Government Debt Reform Act (Section 3.50/1 et. seq. of Chapter 30 of the Illinois Compiled Statutes), and all acts amendatory thereof and supplementary thereto, and in compliance with an authorizing ordinance therefor duly adopted by the Issuer’s City Council on ___________, 2013 (the “Bond Ordinance”).
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We are of the opinion that the foregoing show lawful authority for the issuance and sale of the Bonds under and pursuant to the Constitution and laws of the State of Illinois, and that the Bonds constitute legal, valid and binding general obligations of the Issuer, in connection with which the Issuer’s full faith, credit and resources, including the power to levy taxes without limitation as to rate or amount, are irrevocably pledged to pay the applicable Compound Accreted Value at Maturity. We are also of the opinion that as of the date of delivery thereof, and assuming the Issuer’s continued compliance with the terms and provisions of the Bond Ordinance, the Bonds are not arbitrage bonds, private activity bonds or hedge bonds, and the interest on the Bonds (i.e., compounded accreted value of the initial principal amount at the applicable compounding rate) is not a specific item of tax preference for individuals and corporations and is excluded from gross income under Section 103 of the Internal Revenue Code of 1986, as amended. However, certain collateral federal income tax consequences include that the interest on the Bonds may be subject to an alternative minimum tax on adjusted current earning and a foreign branch profits tax, on certain corporations, and may be a factor in a computation in connection with which certain social security and railroad pension income recipients may be subject to federal income taxes.
The interest on the Bonds is not exempt from income taxation by the State of Illinois. We are also of the opinion that the Bonds constitute “qualified tax-exempt obligations” under
Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. We express no opinion herein as to the accuracy, adequacy or completeness of the
offering document or any other information furnished in connection with the offer or sale of the Bonds. In rendering this opinion, we have relied upon certifications of the Issuer with respect to
certain material facts within the Issuer’s knowledge. Our opinion represents our legal judgment based upon our review of the law and the facts that we deem relevant to render such opinion and is not a guarantee of a result. This opinion is given as of the date hereof and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur.
Respectfully yours,
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OFFICIAL BID FORM City of Lockport July 17, 2013 222 East Ninth Street (CLOSED SPEER AUCTION) Speer Financial, Inc. Lockport, Illinois 60441
Council Members:
For the $1,492,900* General Obligation Capital Appreciation Limited Bonds, Series 2013 of the City of Lockport, Will County, Illinois, as described in the annexed Official Notice of Sale, which is expressly made a part of this bid, we will pay you $_______________________ for Bonds bearing interest as follows (each rate a multiple of 1/8 or 1/100 of 1%).
COMPUTATION OF PRICE BID FOR CAPITAL APPRECIATION BONDS Compound Compound Due Accreted Value Reoffering Due Accreted Value Reoffering Jan. 1 At Maturity*(1) Yield(2) Jan. 1 At Maturity*(1) Yield(2) 2015 ......... $ 70,000 ________% 2017 ......... $785,000 ________% 2016 ......... $725,000 ________% Discount............................................ $_______________ Price Bid for the Series 2013A Bonds................ $_______________ True Interest Rate(3)............................... _______________% Notes: (1) The District reserves the right to increase or decrease any or all maturity values, in multiples of $5,000, in order to result in an original
principal amount of approximately $1,495,000*. (2) State interest rate for Compounded Amount At Maturity. (3) True interest rate assuming a August 1, 2013 delivery date.
The Bonds are to be executed and delivered to us in accordance with the terms of this bid accompanied by the approving legal opinion of
Evans, Froehlich, Beth & Chamley, Champaign, Illinois. The City will pay for the legal opinion. The underwriter agrees to apply for CUSIP numbers within 24 hours and pay the fee charged by the CUSIP Service Bureau and will accept the Bonds with the CUSIP numbers as entered on the Bonds.
As evidence of our good faith, we have wire transferred or enclosed herewith a check or Surety Bond payable to the order of the
Treasurer of the City in the amount of TWO PERCENT OF PAR (the “Deposit”) under the terms provided in your Official Notice of Sale. Attached hereto is a list of members of our account on whose behalf this bid is made.
Form of Deposit Account Manager Information Bidders Option Insurance Check One: Name Certified/Cashier’s Check [ ] Financial Surety Bond [ ] Address Wire Transfer [ ] By Amount: $29,858 City State/Zip
Direct Phone ( ) FAX Number ( ) E-Mail Address
The foregoing bid was accepted and the Bonds sold by ordinance of the City on July 17, 2013, and receipt is hereby acknowledged of the good faith Deposit which is being held in accordance with the terms of the annexed Official Notice of Sale.
CITY OF LOCKPORT, WILL COUNTY, ILLINOIS
Mayor *Subject to change.
----------------------- NOT PART OF THE BID ----------------------- (Calculation of true interest cost)
Gross Interest $
Plus Discount $
True Interest Cost $
True Interest Rate %
TOTAL BOND YEARS 4,248.52
AVERAGE LIFE 2.846 Years
We have purchased insurance from:
Name of Insurer
(Please fill in)
_____________________ Premium: _____________ Maturities: (Check One) [__] ______________Years [__] All
OFFICIAL NOTICE OF SALE
$1,492,900*
CITY OF LOCKPORT Will County, Illinois
General Obligation Capital Appreciation Limited Bonds, Series 2013
(Closed Speer Auction) The City of Lockport, Will County, Illinois (the “City”), will receive electronic bids on the SpeerAuction (“SpeerAuction”) website address “www.SpeerAuction.com” for its $1,492,900* General Obligation Capital Appreciation Limited Bonds, Series 2013 (the “Bonds”), on an all or none basis between 10:00 A.M. and 10:15 A.M., C.D.T., July 17, 2013. To bid, bidders must have: (1) completed the registration form on the SpeerAuction website, and (2) requested and received admission to the City’s sale (as described below). Award will be made or all bids rejected at a meeting of the City on that date. The City reserves the right to change the date or time for receipt of bids. Any such change shall be made not less than twenty-four (24) hours prior to the revised date and time for receipt of the bids for the Bonds and shall be communicated by publishing the changes in the Amendments Page of the SpeerAuction webpage and through Thompson Municipal News.
The Bonds are valid and legally binding upon the City and all taxable property of the City is subject to the levy of ad valorem taxes to pay the same (the “Levied Taxes”) without limitation as to rate. The amount of Levied Taxes that may be extended to pay the Bonds is, however, limited as provided by applicable law as to “limited bonds”. The enforceability of the Bonds against the City 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.
Method of bidding: All-or-none bids must be submitted via internet address www.SpeerAuction.com. No telephone, telefax or personal delivery bids will be accepted. The use of SpeerAuction shall be at the bidder’s risk and expense and the City shall have no liability with respect thereto, including (without limitation) liability with respect to incomplete, late arriving and non-arriving bids. To bid via the SpeerAuction webpage, bidders must first visit the SpeerAuction webpage where, if they have not previously registered with either SpeerAuction, Grant Street Group (the “Auction Administrator”) or any other website administered by the Auction Administrator, they may register and then request admission to bid on the Bonds. Bidders will be notified prior to the scheduled bidding time of their eligibility to bid. Only FINRA registered broker-dealers and dealer banks with DTC clearing arrangements will be eligible to bid. The “Rules” of the SpeerAuction bidding process may be viewed on the SpeerAuction webpage and are incorporated herein by reference. Bidders must comply with the Rules of SpeerAuction in addition to the requirements of the City’s Official Notice of Sale. In the event the Rules of SpeerAuction and this Official Notice of Sale conflict, this Official Notice of Sale shall be controlling. All bids must be submitted on the SpeerAuction webpage. Bidders may change and submit bids as many times as they choose during the sale period but may not delete a submitted bid. The last bid submitted by a bidder before the deadline for receipt of bids will be compared to all other final bids to determine the winning bidder. During the bidding, no bidder will see any other bidder’s bid nor the status of their bid relative to other bids (e.g., whether their bid is a leading bid). The bidder bears all risk of transmission failure. Any questions regarding bidding on the SpeerAuction website should be directed to Grant Street Group at (412) 391-5555 x370. The City reserves the right to reject all bids, to reject any bid not conforming to this Official Notice of Sale, and to waive any irregularity or informality with respect to any bid. Additionally, the City reserves the right to modify or amend this Official Notice of Sale; however, any such modification or amendment shall not be made less than twenty-four (24) hours prior to the date and time for receipt of bids on the Bonds and any such modification or amendment will be announced on the Amendments Page of the SpeerAuction webpage and through Thompson Municipal News.
The Bonds will be in fully registered form in the denominations of $5,000 compound accreted value at maturity and integral multiples thereof registered in the name of Cede & Co. as nominee of The Depository Trust Company (“DTC”), New York, New York, to which principal and interest payments representing the compound accreted value at maturity on the Bonds will be paid. Individual purchases will be in book-entry form only. Interest on the Bonds will be compounded on January 1 and July 1 of each year on the basis of a 360-day year of twelve 30-day months. Interest will be payable, together with principal, only at maturity. Principal and interest representing the compound accreted value at maturity are payable by the City’s registration and paying agent The Bank of New York Mellon Trust Company, N.A., Chicago, Illinois (the “Paying Agent”). The compound accreted value at maturity of the Bonds shall be payable in lawful money of the United States of America at the designated corporate trust office of the Paying Agent.
*Subject to change.
City of Lockport, Will County, Illinois General Obligation Capital Appreciation Limited Bonds, Series 2013 Notice of Sale Page 2 of 4
COMPOUNDED AMOUNT AT MATURITY – JANUARY 1
Amount at Due Amount at Due Maturity* Jan. 1 Maturity* Jan. 1 $ 70,000 ........ 2015 $785,000 ....... 2017 $725,000 ........ 2016
The City reserves the right to increase or decrease any or all maturity values, in multiples of $5,000, in order to result in an original principal amount of approximately $1,495,000*.
The Bonds are not subject to optional redemption prior to maturity. The bids must state a reoffering price or yield (stated interest rate for each compound accreted value at maturity). The Bonds will be awarded on the basis of true interest cost, determined in the following manner. The lowest true interest cost will be the annual interest rate (compounded on January 1 and July 1) necessary to discount the debt service payments on the Bonds from the payment dates thereof to the dated date (assumed to be August 1, 2013) and to the bid price. For the purpose of calculating true interest cost, the Bonds shall be deemed to become due in the compound accreted values at maturity and at the times set forth in the table of maturities set forth above. In the event two or more qualifying bids produce the identical lowest true interest cost, the winning bid shall be the bid that was submitted first in time on the SpeerAuction webpage. The Bonds will be awarded to the bidder complying with the terms of this Official Notice of Sale whose bid produces the lowest true interest cost rate to the City as determined by the City’s Financial Advisor, which determination shall be conclusive and binding on all bidders; provided, that the City reserves the right to reject all bids or any non-conforming bid and reserves the right to waive any informality in any bid. Bidders should verify the accuracy of their final bids and compare them to the winning bids reported on the SpeerAuction Observation Page immediately after the bidding. The true interest cost of each bid will be computed by SpeerAuction and reported on the Observation Page of the SpeerAuction webpage immediately following the date and time for receipt of bids. These true interest costs are subject to verification by the City’s Financial Advisor, will be posted for information purposes only and will not signify an actual award of any bid or an official declaration of the winning bid. The City or its Financial Advisor will notify the bidder to whom the Bonds will be awarded, if and when such award is made. The winning bidder will be required to make the standard filings and maintain the appropriate records routinely required pursuant to MSRB Rules G-8, G-11 and G-32. The winning bidder will be required to pay the standard MSRB charge for Bonds purchased. In addition, the winning bidder who is a member of the Securities Industry and Financial Markets Association (“SIFMA”) will be required to pay SIFMA’s standard charge per bond.
Each bid shall be accompanied by a certified or cashier’s check on, or a wire transfer from, a solvent bank or trust company or a Financial Surety Bond for TWO PERCENT OF PAR payable to the Treasurer of the City as evidence of good faith of the bidder (the “Deposit”). The Deposit of the successful bidder will be retained by the City pending delivery of the Bonds and all others will be promptly returned. Should the successful bidder fail to take up and pay for the Bonds when tendered in accordance with this Notice of Sale and said bid, said Deposit shall be retained as full and liquidated damages to the City caused by failure of the bidder to carry out the offer of purchase. Such Deposit will otherwise be applied on the purchase price upon delivery of the Bonds. No interest on the Deposit will accrue to the purchaser.
If a wire transfer is used for the Deposit, it must be sent according to the following wire instructions:
Amalgamated Bank of Chicago Corporate Trust
One West Monroe Chicago, IL 60603 ABA # 071003405
Credit To: 3281 Speer Bidding Escrow RE: City of Lockport, Will County, Illinois
bid for $1,492,900* General Obligation Capital Appreciation Limited Bonds, Series 2013
*Subject to change.
City of Lockport, Will County, Illinois General Obligation Capital Appreciation Limited Bonds, Series 2013 Notice of Sale Page 3 of 4
The wire shall arrive in such account no later than 30 minutes prior to the date and time of the sale of the Bonds. Contemporaneously with such wire transfer, the bidder shall send an email to [email protected] with the following information: (1) indication that a wire transfer has been made, (2) the amount of the wire transfer, (3) the issue to which it applies, and (4) the return wire instructions if such bidder is not awarded the Bonds. The City and any bidder who chooses to wire the Deposit hereby agree irrevocably that Speer Financial, Inc. (“Speer”) shall be the escrow holder of the Deposit wired to such account subject only to these conditions and duties: (i) if the bid is not accepted, Speer shall, at its expense, promptly return the Deposit amount to the unsuccessful bidder; (ii) if the bid is accepted, the Deposit shall be forwarded to the City; (iii) Speer shall bear all costs of maintaining the escrow account and returning the funds to the bidder; (iv) Speer shall not be an insurer of the Deposit amount and shall have no liability except if it willfully fails to perform, or recklessly disregards, its duties specified herein; and (v) income earned on the Deposit, if any, shall be retained by Speer.
If a Financial Surety Bond is used for the Deposit, it must be from an insurance company licensed to issue such a bond in the State of
Illinois and such bond must be submitted to Speer prior to the opening of the bids. The Financial Surety Bond must identify each bidder whose deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to a bidder using a Financial Surety Bond, then that purchaser is required to submit its Deposit to the City in the form of a certified or cashier’s check or wire transfer as instructed by Speer, or the City not later than 3:00 P.M. on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The City covenants and agrees to enter into a written agreement or contract, constituting an undertaking (the “Undertaking”) to provide ongoing disclosure about the City for the benefit of the beneficial owners of the Bonds on or before the date of delivery of the Bonds as required under Section (b)(5) of Rule 15c2-12 (the “Rule”) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. The Undertaking shall be as described in the Official Statement, with such changes as may be agreed in writing by the Underwriter. The City represents that it is in compliance with each and every undertaking previously entered into it pursuant to the Rule. The Underwriter’s obligation to purchase the Bonds shall be conditioned upon the City delivering the Undertaking on or before the date of delivery of the Bonds.
By submitting a bid, any bidder makes the representation that it understands Bond Counsel represents the City in the Bond transaction and, if such bidder has retained Bond Counsel in an unrelated matter, such bidder represents that the signatory to the bid is duly authorized to, and does consent to and waive of and on behalf of such bidder any conflict of interest of Bond Counsel arising from any adverse position to the City in this matter; such consent and waiver shall supersede any formalities otherwise required in any separate understandings, guidelines or contractual arrangements between the bidder and Bond Counsel. Bonds will be delivered to the successful purchaser against full payment in immediately available funds as soon as they can be prepared and executed, which is expected to be on or about August 1, 2013. Should delivery be delayed beyond sixty (60) days from the date of sale for any reason beyond the control of the City except failure of performance by the purchaser, the City may cancel the award or the purchaser may withdraw the good faith deposit and thereafter the purchaser’s interest in and liability for the Bonds will cease. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts, and interest rates of the Bonds, and any other information required by law or deemed appropriate by the City, shall constitute a “Final Official Statement” of the City with respect to the Bonds, as that term is defined in the Rule. By awarding the Bonds to any underwriter or underwriting syndicate, the City agrees that, no more than seven (7) business days after the date of such award, it shall provide, without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded, up to 100 copies of the Final Official Statement to permit each “Participating Underwriter” (as that term is defined in the Rule) to comply with the provisions of such Rule. The City shall treat the senior managing underwriter of the syndicate to which the Bonds are awarded as its designated agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter executing and delivering an Official Bid Form with respect to the Bonds agrees thereby that if its bid is accepted by the City it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. By submission of its bid, the senior managing underwriter of the successful bidder agrees to supply all necessary pricing information and any Participating Underwriter identification necessary to complete the Official Statement within 24 hours after award of the Bonds. Additional copies of the Final Official Statement may be obtained by Participating Underwriters from the printer at cost. The City will, at its expense, deliver the Bonds to the purchaser in New York, New York, through the facilities of DTC and will pay for the bond attorney’s opinion. At the time of closing, the City will also furnish to the purchaser the following documents, each dated as of the date of delivery of the Bonds: (1) the unqualified opinion of Evans, Froehlich, Beth & Chamley, Champaign, Illinois, that the Bonds are lawful and enforceable lawful and enforceable obligations of the City in accordance with their terms (2) the opinion of said attorneys that the interest on the Bonds is exempt from federal income taxes as and to the extent set forth in the Official Statement for the Bonds; and (3) a no litigation certificate by the City.
City of Lockport, Will County, Illinois General Obligation Capital Appreciation Limited Bonds, Series 2013 Notice of Sale Page 4 of 4 The City intends to designate the Bonds as “qualified tax-exempt obligations” pursuant to the small issuer exception provided by Section 265(b) (3) of the Internal Revenue Code of 1986, as amended.
The City has authorized the printing and distribution of an Official Statement containing pertinent information relative to the City and the Bonds. Copies of such Official Statement or additional information may be obtained from Mr. Erik Brown, Finance Director, City of Lockport, 222 East Ninth Street, Lockport, Illinois 60441 or an electronic copy of this Official Statement is available from the www.speerfinancial.com web site under “Debt Auction Center/Competitive Sales Calendar” from the Independent Public Finance Consultants to the City, Speer Financial, Inc., One North LaSalle Street, Suite 4100, Chicago, Illinois 60602, telephone (312) 346-3700. /s/ STEVEN STREIT /s/ FRANK KOEHLER Mayor Interim City Administrator and City Planner CITY OF LOCKPORT CITY OF LOCKPORT Will County, Illinois Will County, Illinois