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HomeMy Public PortalAbout2012B Final Official Statement 111912ADDENDUM DATED NOVEMBER 30, 2012 TO PRELIMINARY OFFICIAL STATEMENT DATED NOVEMBER 19, 2012 New Issue Rating: Moody's Investors Service, Inc. "Aaa" $14,575,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2012B VILLAGE OF GLENVIEW, COOK COUNTY, ILLINOIS Schedule of Maturity Dates, Principal Amounts, Interest Rates and Yields Serial Bonds Maturity (December 1)Amount Interest Rate Yield CUSIP Base 378892 Maturity (December 1)Amount Interest Rate Yield CUSIP Base 378892 2015 2016 2017 2018 2019 $1,200,000 $1,245,000 $1,295,000 $1,365,000 $1,410,000 4.000% 4.000% 4.000% 4.000% 4.000% 0.520% 0.620% 0.790% 0.910% 1.090% SG9 SH7 SJ3 SK0 SL8 2020 2021 2022 2023 2024 $1,475,000 $1,540,000 $1,605,000 $1,690,000 $1,750,000 4.000% 4.000% 4.000% 4.000% 3.000% 1.280% 1.480% 1.670% *1.840% *2.040% SM6 SN4 SP9 SQ7 SR5 *Priced to call Subsequent to bid opening the 2013 and 2014 maturities were eliminated. Bank of America Merrill Lynch has agreed to purchase the Bonds from the Village for an aggregate price of $16,931,748.56 plus accrued interest, if any, to the date of delivery. It is expected that the Bonds will be available for delivery on or about December 18, 2012. Book-Entry-Only: This offering will be issued as fully registered Bonds and will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York, to which principal and interest payments on the Bonds will be made. Paying/Escrow Agent: Wells Fargo Bank, National Association, Chicago, Illinois. THIS ADDENDUM TOGETHER WITH THE OFFICIAL STATEMENT DATED NOVEMBER 19, 2012, SHALL CONSTITUTE A "FINAL OFFICIAL STATEMENT" OF THE ISSUER WITH RESPECT TO THE BONDS AS THAT TERM IS DEFINED IN RULE 15c2-12 OF THE SECURITIES AND EXCHANGE COMMISSION. BANK OF AMERICA MERRILL LYNCH New York, New York Subject to compliance by the Village with certain covenants, in the opinion of Chapman and Cutler LLP, 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. SEE "TAX EXEMPTION" herein for a more complete discussion. New Issue Rating Application Made: Moody's Investors Service (Current Underlying Rating: Aaa) PRELIMINARY OFFICIAL STATEMENT DATED NOVEMBER 19, 2012 VILLAGE OF GLENVIEW COOK COUNTY, ILLINOIS $17,020,000* GENERAL OBLIGATION REFUNDING BONDS, SERIES 2012B BID OPENING: November 29, 2012, 10:00 A.M., C.T. PURPOSE/AUTHORITY/SECURITY: The $17,020,000* General Obligation Refunding Bonds, Series 2012B (the "Bonds" or “Obligations”) being issued by the Village of Glenview, Cook County, Illinois (the "Village") are authorized pursuant to the Illinois Municipal Code, as amended, and the Local Government Debt Reform Act of the State of Illinois, as amended, to provide funds to refund certain outstanding general obligation bonds of the Village and to pay the cost of issuing the Bonds. The Bonds are general obligations of the Village, for which its full faith and credit has been irrevocably pledged, and are payable from ad valorem taxes levied upon all the taxable property in the Village without limitation as to rate or amount, except that the rights of the owner of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditors' rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. Delivery is subject to receipt of an approving legal opinion of Chapman and Cutler LLP, Chicago, Illinois. * Preliminary, subject to change. DATE OF BONDS: December 18, 2012 MATURITY: December 1 as follows: Year Amount* Year Amount* Year Amount* 2013 $275,000 2017 $1,565,000 2021 $1,680,000 2014 265,000 2018 1,600,000 2022 1,715,000 2015 1,540,000 2019 1,610,000 2023 1,770,000 2016 1,555,000 2020 1,645,000 2024 1,800,000 MATURITY ADJUSTMENTS: * The Village reserves the right to increase or decrease the amount of any individual maturity of the Bonds in increments of $5,000 on the day of sale. If individual maturities are increased or decreased, the purchase price proposed will be adjusted to maintain the same gross spread per $1,000. TERM BONDS: See "Term Bond Option" herein. INTEREST: June 1, 2013 and semiannually thereafter. OPTIONAL REDEMPTION: Bonds maturing December 1, 2023 and thereafter are subject to call for prior redemption on December 1, 2022 and any date thereafter, at par. MINIMUM BID: $16,849,800. GOOD FAITH DEPOSIT: $340,400. PAYING AGENT: Wells Fargo Bank, National Association, Chicago, Illinois. BOOK-ENTRY-ONLY:See "Book-Entry-Only System" herein (unless otherwise specified by the purchaser). This Preliminary Official Statement will be further supplemented by an addendum specifying the offering prices, interest rates, aggregate principal amount, principal amount per maturity, anticipated delivery date, and Syndicate Manager and Syndicate Members, together with any other information required by law, and, as supplemented, shall constitute a "Final Official Statement" of the Village with respect to the Bonds, as defined in S.E.C. Rule 15c2-12. ii REPRESENTATIONS No dealer, broker, salesperson or other person has been authorized by the Village to give any information or to make any representation other than those contained in this Preliminary Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized by the Village. This Preliminary Official Statement does not constitute an offer to sell or a solicitation of an offer to buy any of these Obligations in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction. This Preliminary Official Statement is not to be construed as a contract with the Syndicate Manager or Syndicate Members. Statements contained herein which involve estimates or matters of opinion are intended solely as such and are not to be construed as representations of fact. Ehlers prepared this Preliminary Official Statement and any addenda thereto relying on information of the Village and other sources for which there is reasonable basis for believing the information is accurate and complete. Bond Counsel has not participated in the preparation of this Preliminary Official Statement except as described herein and is not expressing any opinion as to the completeness or accuracy of the information contained therein. Compensation of Ehlers, payable entirely by the Village, is contingent upon the sale of the issue. COMPLIANCE WITH S.E.C. RULE 15c2-12 Certain municipal obligations (issued in an aggregate amount over $1,000,000) are subject to General Rules and Regulations, Securities Exchange Act of 1934, Rule 15c2-12 Municipal Securities Disclosure (the "Rule"). Preliminary Official Statement: This Preliminary Official Statement was prepared for the Village for dissemination to potential customers. Its primary purpose is to disclose information regarding these Obligations to prospective underwriters in the interest of receiving competitive proposals in accordance with the sale notice contained herein. Unless an addendum is posted prior to the sale, this Preliminary Official Statement shall be deemed nearly final for purposes of the Rule subject to completion, revision and amendment in a Final Official Statement as defined below. Review Period: This Preliminary Official Statement has been distributed to members of the legislative body and other public officials of the Village as well as to prospective bidders for an objective review of its disclosure. Comments or requests for the correction of omissions or inaccuracies must be submitted to Ehlers at least two business days prior to the sale. Requests for additional information or corrections in the Preliminary Official Statement received on or before this date will not be considered a qualification of a proposal received from an underwriter. If there are any changes, corrections or additions to the Preliminary Official Statement, interested bidders will be informed by an addendum at least one business day prior to the sale. Final Official Statement: Upon award of sale of these Obligations, the Preliminary Official Statement together with any previous addendum of corrections or additions will be further supplemented by an addendum specifying the offering prices, interest rates, aggregate principal amount, principal amount per maturity, anticipated delivery date, and Syndicate Manager and Syndicate Members, together with any other information required by law, and, as supplemented, shall constitute a "Final Official Statement" of the Village with respect to the Obligations, as defined in S.E.C. Rule 15c2-12. Copies of the Final Official Statement will be delivered to the underwriter (Syndicate Manager) within seven business days following the proposal acceptance. Continuing Disclosure: Subject to certain exemptions, issues in an aggregate amount over $1,000,000 may be required to comply with provisions of the Rule which require that underwriters obtain from the issuers of municipal securities (or other obligated party) an agreement for the benefit of the owners of the securities to provide continuing disclosure with respect to those securities. This Preliminary Official Statement describes the conditions under which these Obligations are exempt or required to comply with the Rule. CLOSING CERTIFICATES Upon delivery of these Obligations, the purchaser (underwriter) will be furnished with the following items: (1) a certificate of the appropriate officials to the effect that at the time of the sale of these Obligations and all times subsequent thereto up to and including the time of the delivery of these Obligations, this Preliminary Official Statement did not and does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (2) a receipt signed by the appropriate officer evidencing payment for these Obligations; (3) a certificate evidencing the due execution of these Obligations, including statements that (a) no litigation of any nature is pending, or to the knowledge of signers, threatened, restraining or enjoining the issuance and delivery of these Obligations, (b) neither the corporate existence or boundaries of the Village nor the title of the signers to their respective offices is being contested, and (c) no authority or proceedings for the issuance of these Obligations have been repealed, revoked or rescinded; and (4) a certificate setting forth facts and expectations of the Village which indicates that the Village does not expect to use the proceeds of these Obligations in a manner that would cause them to be arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or within the meaning of applicable Treasury Regulations. iii TABLE OF CONTENTS INTRODUCTORY STATEMENT ................................................................................ 1 THE BONDS ................................................................................................. 1 GENERAL........................................................................................... 1 TERM BOND OPTION ................................................................................. 1 OPTIONAL REDEMPTION ............................................................................. 2 AUTHORITY; PURPOSE ............................................................................... 2 ESTIMATED SOURCES AND USES ..................................................................... 3 SECURITY .......................................................................................... 4 RATING............................................................................................. 4 CONTINUING DISCLOSURE ........................................................................... 4 LEGAL OPINION ..................................................................................... 5 TAX EXEMPTION .................................................................................... 5 BONDS ARE NOT “QUALIFIED TAX-EXEMPT OBLIGATIONS”............................................. 7 CERTAIN LEGAL MATTERS ........................................................................... 7 FINANCIAL ADVISOR ................................................................................ 7 RISK FACTORS ...................................................................................... 8 ILLINOIS PROPERTY VALUATIONS............................................................................ 9 CURRENT PROPERTY VALUATIONS .................................................................. 15 TREND OF VALUATIONS ............................................................................ 15 LARGER TAXPAYERS ............................................................................... 16 DEBT...................................................................................................... 17 STATEMENT OF INDEBTEDNESS ..................................................................... 17 DIRECT GENERAL OBLIGATION DEBT ................................................................ 17 OTHER OBLIGATIONS............................................................................... 17 GENERAL OBLIGATION DEBT LIMIT.................................................................. 17 SCHEDULE OF BONDED INDEBTEDNESS .............................................................. 18 OVERLAPPING DEBT................................................................................ 19 DEBT PAYMENT HISTORY........................................................................... 20 FUTURE FINANCING ................................................................................ 20 TAX LEVIES, COLLECTIONS, AND TAX RATES ................................................................. 21 TAX LEVIES AND COLLECTIONS ..................................................................... 21 REPRESENTATIVE TAX RATES....................................................................... 21 THE VILLAGE .............................................................................................. 22 VILLAGE INFORMATION ............................................................................ 22 EMPLOYEES AND UNIONS ........................................................................... 31 LIABILITIES FOR OTHER POST EMPLOYMENT BENEFITS ............................................... 31 LITIGATION........................................................................................ 31 SUMMARY FINANCIAL INFORMATION ................................................................ 32 GENERAL INFORMATION.................................................................................... 39 LARGER EMPLOYERS ............................................................................... 39 RETAIL ACTIVITY .................................................................................. 41 U.S. CENSUS DATA.................................................................................. 42 EMPLOYMENT/UNEMPLOYMENT DATA .............................................................. 43 BUILDING PERMITS................................................................................. 43 EXCERPTS FROM FINANCIAL STATEMENTS .................................................................. A-1 FORM OF LEGAL OPINION.................................................................................. B-1 BOOK-ENTRY-ONLY SYSTEM ............................................................................... C-1 FORM OF CONTINUING DISCLOSURE UNDERTAKING ......................................................... D-1 NOTICE OF SALE .......................................................................................... E-1 iv PRESIDENT AND BOARD OF TRUSTEES Term Expires Kerry D. Cummings President April 2013 Scott R. Britton Trustee April 2015 Pat Cuisinier Trustee April 2013 Paul Detlefs Trustee April 2013 Michael Jenny Trustee April 2015 Deborah Karton Trustee April 2013 Philip O’C. White Trustee April 2015 OFFICIALS Todd Hileman, Village Manager, Village Clerk and Village Treasurer Donald K. Owen, Deputy Village Manager Amy L. Ahner, Director of Administrative Services Ron Amen, Chief Financial Officer PROFESSIONAL SERVICES Eric G. Patt, Esq., Village Attorney, Glenview, Illinois Chapman and Cutler LLP, Bond Counsel, Chicago, Illinois Ehlers & Associates, Inc., Financial Advisors, Lisle, Illinois (Other offices located in Roseville, Minnesota and Brookfield, Wisconsin) 1 INTRODUCTORY STATEMENT This Preliminary Official Statement contains certain information regarding the Village of Glenview, Cook County, Illinois (the "Village" or "Issuer") and the issuance of its $17,020,000* General Obligation Refunding Bonds, Series 2012B (the "Bonds" or "Obligations"). Any descriptions or summaries of the Bonds, statutes, or documents included herein are not intended to be complete and are qualified in their entirety by reference to such statutes and documents and the form of the Bonds included in the ordinance authorizing the sale of the Bonds adopted by the Board of Trustees on November 13, 2012 (as supplemented by the 2012B Bond Order and Notification of Sale executed in connection with the Bonds, and as amended by the ordinance adopted on December 4, 2012, relating to the Bonds, together, the “Bond Ordinance”). Inquiries may be directed to Ehlers & Associates, Inc. ("Ehlers" or the "Financial Advisor"), Lisle, Illinois, (630) 271- 3330, the Village's Financial Advisor. A copy of this Preliminary Official Statement may be downloaded from Ehlers’ web site at www.ehlers-inc.com by connecting to the link to the Bond Sales and following the directions at the top of the site. * Preliminary, subject to change. THE BONDS GENERAL The Bonds will be issued in fully registered form as to both principal and interest in denominations of $5,000 each or any integral multiple thereof, and will be dated, as originally issued, as of December 18, 2012. The Bonds will mature on December 1 in the years and amounts set forth on the cover of this Preliminary Official Statement. Interest will be payable on June 1 and December 1 of each year, commencing June 1, 2013, to the registered owners of the Bonds appearing of record in the bond register as of the close of business on the 15th day (whether or not a business day) of the immediately preceding month. Interest will be computed upon the basis of a 360-day year of twelve 30- day months and will be rounded pursuant to rules of the MSRB. All Bonds of the same maturity will bear interest from date of issue until paid at a single, uniform rate. Unless otherwise specified by the purchaser the Bonds will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC"). (See "Book-Entry-Only System" herein.) As long as the Bonds are held under the book-entry system, beneficial ownership interests in the Bonds may be acquired in book-entry form only, and all payments of principal of, premium, if any, and interest on the Bonds shall be made through the facilities of DTC and its Participants. If the book-entry system is terminated, principal of, premium, if any, and interest on the Bonds shall be payable as provided in the ordinance awarding the sale of the Bonds. The Village has selected Wells Fargo Bank, National Association, Chicago, Illinois, to act as bond registrar and paying agent (the "Paying Agent"). The Village will pay the charges for Paying Agent services. The Village reserves the right to remove the Paying Agent and to appoint a successor. TERM BOND OPTION Bids for the Bonds may contain a maturity schedule providing for any combination of serial bonds and term bonds, subject to mandatory redemption, so long as the amount of principal maturing or subject to mandatory redemption in each year conforms to the maturity schedule set on the cover. 2 OPTIONAL REDEMPTION At the option of the Village, Bonds maturing on or after December 1, 2023 shall be subject to redemption prior to maturity on December 1, 2022 and on any date thereafter, at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to redemption. If redemption is in part, the selection of the amounts and maturities of the Bonds to be redeemed shall be at the discretion of the Village. If only part of the Bonds having a common maturity date are called for redemption, the Bond Registrar will notify DTC of the particular amount of such maturity to be redeemed. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interest in such maturity to be redeemed. Notice of such call shall be given by mailing a notice not more than 60 days and not less than 30 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the registration books. Unless moneys sufficient to pay the redemption price of the Bonds to be redeemed are received by the Paying Agent prior to the giving of a notice of redemption, such notice may, at the option of the Village, state that said redemption will be conditional upon the receipt of such moneys by the Paying Agent on or prior to the date fixed for redemption. If such moneys are not received, such notice will be of no force and effect, the Village will not redeem such Bonds, and the Bond Registrar will give notice, in the same manner in which the notice of redemption has been given, that such moneys were not so received and that such Bonds will not be redeemed. Otherwise, prior to any redemption date, the Village will deposit with the Paying Agent an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on the date. Subject to the provisions for a conditional redemption described above, notice of redemption having been given and described above and in the Bond Ordinance, the Bonds or portions of Bonds so to be redeemed will, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the Village shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds will be paid by the Paying Agent at the redemption price. AUTHORITY; PURPOSE The Bonds of the Village are authorized pursuant to the Illinois Municipal Code, as amended, and the Local Government Debt Reform Act of the State of Illinois, as amended, to provide funds to refund the 2015 through 2024 maturities of the outstanding amount of the Village’s General Obligation Bonds, Series 2004B, dated August 1, 2004 (the “2004B Bonds” or “Refunded Bonds”) and to pay the costs of issuing the Bonds. 1 Preliminary, subject to change. 3 Following are the maturities of the 2004B Bonds being refunded by the Bonds: Issue Being Refunded Date of Refunded Issue Call Date Call Price Maturities Being Refunded Interest Rates Principal to be Refunded CUSIP Base 378892 2004B Bonds 8/1/2004 12/1/2014 Par 2015 4.000% 1,275,000 NU34 2016 4.000% 1,325,000 NV17 2017 4.100% 1,375,000 NW99 2018 4.200% 1,450,000 NX72 2019 4.250% 1,500,000 NY55 2020 4.375% 1,575,000 NZ21 2021 4.400% 1,650,000 PA51 2022 4.500% 1,725,000 PB35 2023 4.625% 1,825,000 PC18 2024 4.700% 1,900,000 PD90 Total 2004B Bonds Being Refunded $15,600,000 The Bonds are being sold in advance of the call date of the 2004B Bonds and proceeds of the Bonds will be invested in accordance with the Internal Revenue Code of 1986, as amended. Acceptance of a bid is dependent upon a satisfactory escrow account being established in an amount sufficient to pay interest on the callable portion of the 2004B Bonds from December 18, 2012 through December 1, 2014 and to pay the principal being refunded on the 2004B Bonds on December 1, 2014. The Village will establish an escrow account with direct obligations of the U.S. Government. Actuarial services necessary to ensure adequacy of the escrow account to provide timely payment of the 2004B Bonds to be refunded on the call date will be performed by Barthe & Wahrman, Bloomington, Minnesota, certified public accountant. The Village will continue to pay the principal of and interest due on the non-callable 2004B Bonds through December 1, 2014. ESTIMATED SOURCES AND USES1 Sources Par Amount of Bonds $17,020,000 Total Sources $17,020,000 Uses Deposit to Escrow Fund $16,879,537 Est. Finance Related Expenses 140,100 Rounding Amount 363 Total Uses $17,020,000 4 SECURITY The Bonds are general obligations of the Village, for which its full faith and credit has been irrevocably pledged, and are payable from ad valorem taxes levied upon all the taxable property in the Village without limitation as to rate or amount, except that the rights of the owner of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditors' rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. In the Bond Ordinance, the Village has levied in each year while the Bonds are outstanding taxes sufficient to pay the principal of and interest on the Bonds. The Bond Ordinance will be filed with the County Clerk of The County of Cook, Illinois (the "County Clerk"), and will serve as authorization to the County Clerk to extend and collect the property taxes as set forth in the Bond Ordinance. In the event that funds from any other lawful source are made available or determined to become available for the purpose of paying any principal of or interest on the Bonds so as to enable the abatement of the taxes levied in the Bond Ordinance for the payment of same, the President and Board of Trustees will, by proper proceedings, direct the deposit of such moneys currently or when received into the Bond Fund (as defined in the Bond Ordinance) and further direct the abatement of such taxes by the amount so deposited. RATING General obligation debt of the Village, with the exception of any outstanding credit enhanced issues, is currently rated “Aaa” by Moody's Investors Service. The Village has requested a rating on this issue from Moody's Investors Service, and bidders will be notified as to the assigned rating prior to the sale. Such a rating, if and when received, will reflect only the view of the rating agency and any explanation of the significance of such rating may only be obtained from Moody's Investors Service. There is no assurance that such rating, if and when received, will continue for any period of time or that it will not be revised or withdrawn. Any revision or withdrawal of the rating may have an effect on the market price of the Bonds. CONTINUING DISCLOSURE The Village will enter into a Continuing Disclosure Undertaking (the "Undertaking") for the benefit of the beneficial owners of the Bonds to send certain information annually and to provide notice of certain events to certain information repositories pursuant to the requirements of Section (b)(5) of Rule 15c2-12 (the "Rule") adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. The information to be provided on an annual basis, the events which will be noticed on an occurrence basis and other terms of the Undertaking, including termination, amendment and remedies, are set forth in "THE UNDERTAKING" in Appendix D. The Village has previously been required to deliver an undertaking pursuant to the Rule. The Village is in compliance with each and every undertaking previously entered into by it pursuant to the Rule. A failure by the Village to comply with the Undertaking will not constitute a default under the Bond Ordinance and beneficial owners of the Bonds are limited to the remedies described in the Undertaking. A failure by the Village to comply with the Undertaking must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer 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. 5 LEGAL OPINION An opinion as to the validity of the Bonds and the exemption from federal taxation of the interest thereon will be furnished by Chapman and Cutler LLP, Chicago, Illinois, bond counsel to the Village, and will accompany the Bonds. The legal opinion will state that the Bonds, to the amount named, are valid and legally binding obligations of the Village, and all taxable property in the Village is subject to the levy of taxes to pay the same without limitation as to rate or amount, except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. 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 Village 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 issue of the Bonds. Subject to the Village'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 Village with respect to certain material facts within the Village's knowledge and upon the mathematical computation of the yield on the Bonds and the yield on certain investments by Barthe & Wahrman, Bloomington, Minnesota, Certified Public Accountants. 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. 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 Addendum of the Final Official Statement. 6 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 Village 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 stated redemption price at maturity 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. 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 adversely 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. 7 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 Village 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 state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such collateral consequences arising with respect to the Bonds. Prospective purchasers of the Bonds should consult their tax advisors regarding the applicability of any such state and local taxes. BONDS ARE NOT “QUALIFIED TAX-EXEMPT OBLIGATIONS” The Village will not designate the Bonds as "qualified tax-exempt obligations” for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt obligations. CERTAIN LEGAL MATTERS Certain legal matters incident to the authorization, issuance and sale of the Bonds are subject to the approving legal opinion of Chapman and Cutler LLP, Chicago, Illinois, as Bond Counsel (the “Bond Counsel”), who has been retained by, and acts as, Bond Counsel to the Village. 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, Chapman and Cutler LLP has, at the request of the Village, reviewed only those sections of this Official Statement involving the description of the Bonds, the security for the Bonds 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 Village and did not include any obligation to establish or confirm factual matters set forth herein. FINANCIAL ADVISOR Ehlers has served as Financial Advisor to the Village in connection with the issuance of the Bonds. The Financial Advisor will not participate in the underwriting of the Bonds. The financial information included in this Preliminary 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. Ehlers is not a firm of certified public accountants. Ehlers is registered with the Securities and Exchange Commission and the Municipal Securities Rulemaking Board as a Municipal Advisor. 8 RISK FACTORS Following is a description of possible risks to holders of these Bonds without weighting as to probability. This description of risks is not intended to be all-inclusive, and there may be other risks not now perceived or listed here. Taxes: The Bonds of this offering are general obligations of the Village, the ultimate payment of which rests in the Village's ability to levy and collect sufficient taxes to pay debt service should other revenue be insufficient. State Actions: Many elements of local government finance, including the issuance of debt and the levy of property taxes, are controlled by state government. Past and future actions of the State may affect the overall financial condition of the Village, the taxable value of property within the Village, and the ability of the Village to levy property taxes. Ratings; Interest Rates: In the future, the Village's credit rating may be reduced or withdrawn, or interest rates for this type of obligation may rise generally, either possibility resulting in a reduction in the value of the Obligations for resale prior to maturity. Tax Exemption: If the federal government taxes all or a portion of the interest on municipal bonds or notes or if the state government increases its tax on interest on bonds and notes, directly or indirectly, or if there is a change in federal or state tax policy, then the value of these Bonds may fall for purposes of resale. Noncompliance by the Issuer with the covenants in the Award Ordinance relating to certain continuing requirements of the Code may result in inclusion of interest to be paid on the Bonds in gross income of the recipient for United States income tax purposes, retroactive to the date of issuance. Continuing Disclosure: A failure by the Village to comply with the Undertaking for continuing disclosure (see "Continuing Disclosure") will not constitute an event of default on the Bonds. Any such failure must be reported in accordance with the Rule and must be considered by any broker, dealer, or municipal securities dealer before recommending the purchase or sale of the Bonds in the secondary market. Such a failure may adversely affect the transferability and liquidity of the Bonds and their market price. State Economy; Local Government Aids: State cash flow problems could affect local governments and possibly increase property taxes. Book-Entry-Only System: The timely credit of payments for principal and interest on the Bonds to the accounts of the Beneficial Owners of the Bonds may be delayed due to the customary practices, standing instructions or for other unknown reasons by DTC participants or indirect participants. Since the notice of redemption or other notices to holders of these obligations will be delivered by the Village to DTC only, there may be a delay or failure by DTC, DTC participants or indirect participants to notify the Beneficial Owners of the Bonds. Economy: A combination of economic, climatic, political or civil disruptions or terrorist actions could affect the local economy and result in reduced tax collections and/or increased demands upon local government. 9 ILLINOIS PROPERTY VALUATIONS REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES REAL PROPERTY ASSESSMENT The County Assessor (the "Assessor") is responsible for the assessment of all taxable real property within Cook County (the "County"), including such property located within the boundaries of the Issuer, except for certain railroad property, pollution control facilities and low sulfur dioxide emission coal-fueled devices, which are assessed directly by the Illinois Department of Revenue (the "Department of Revenue"). For triennial reassessment purposes, Cook County is divided into three districts: west and south suburbs (the "South Tri"), north and northwest suburbs (the "North Tri"), and the City of Chicago (the "City Tri"). The Village is located in the north Tri and was reassessed for the 2010 tax levy year. In response to the downturn of the real estate market, the Assessor reduced the 2009 assessed value on suburban residential properties (specifically, those properties located in the South Tri and the North Tri) not originally scheduled for reassessment in 2009. For tax year 2009, each suburban township received an adjustment percentage, lowering the existing assessed values of all residential properties in such township within a range of 4% to 15%, beginning with the second-installment tax bills payable in the fall of 2010. Real property in the County is separated into classes for assessment purposes. After the Assessor establishes the fair market value of a parcel of property, that value is multiplied by the appropriate classification percentage to arrive at the assessed valuation (the "Assessed Valuation") for the parcel. Such classification percentages range from 10% for certain residential, commercial and industrial property to 25% for other industrial and commercial property. Property is classified for assessment into six basic categories, each of which is assessed (beginning with the 2009 tax levy year) at various percentages of fair market value as follows: Class 1 - unimproved real estate (10%); Class 2 - residential (10%); Class 3 - rental-residential (16% in tax year 2009, 13% in tax year 2010, and 10% in tax year 2011 and subsequent years); Class 4 - not-for-profit (25%); Class 5a - commercial (25%); and Class 5b - industrial (25%). In addition, property may be temporarily classified into one of eight additional assessment classification categories. Upon expiration of such classification, property so classified will revert to one of the basic six assessment classifications described above. 10 Class Description of Qualifying Property Assessment Percentage Reverts to Class 6b Newly constructed industrial properties or substantially rehabilitated sections of existing industrial properties 10% for first 10 years and any 10 year renewal; If not renewed, 15% in year 11, 20% in year 12 5b C Industrial property that has undergone environmental testing and remediation 10% for first 10 years, 15% in year 11, 20% in year 12 5a Commercial property that has undergone environmental testing and remediation 10% for first 10 years, 15% in year 11, 20% in year 12 5b 7a/7b Newly constructed or substantially rehabilitated commercial properties in an area in need of commercial development 10% for first 10 years, 15% in year 11, 20% in year 12 5a 8 Industrial properties in enterprise communities or zones in need of substantial revitalization 10% for first 10 years and any 10- year renewal; If not renewed, 15% in year 11, 20% in year 12 5a Commercial properties in enterprise communities or zones in need of substantial revitalization 10% for first 10 years, 15% in year 11, 20% in year 12 5b 9 New or substantially rehabilitated multi-family residential properties in target areas, empowerment or enterprise zones 10% for first 10 years and any 10 year renewal As Applicable S Class 3 properties subject to Section 8 contracts renewed under the Mark to Market option 10% for term of Section 8 contract renewal and any subsequent renewal 3 L Substantially rehabilitated Class 3, 4 or 5b properties qualifying as “Landmark” or “Contributing” buildings 10% for first 10 years and any 10- year renewal; If not renewed, 15% in year 11, 20% in year 12 3, 4, or 5b Substantially rehabilitated Class 5a properties qualifying as “Landmark” or “Contributing” buildings 10% for first 10 years, 15% in year 11, 20% in year 12 5a The additional assessment classifications are as follows: The Assessor has established procedures enabling taxpayers to contest their proposed Assessed Valuations. Once the Assessor certifies its final Assessed Valuations, a taxpayer can seek review of its assessment by appealing to the Cook County Board of Review, which consists of three commissioners elected by the voters of the County. The Board of Review has the power to adjust the Assessed Valuations set by the Assessor. Owners of both residential property having six or fewer units and owners of real estate other than residential property with six or fewer units are able to appeal decisions of the Board of Review to the Illinois Property Tax Appeal Board (the "PTAB"), a statewide administrative body. The PTAB has the power to determine the Assessed Valuation of real property based on equity and the weight of the evidence. Taxpayers may appeal the decision of PTAB to either the Circuit Court of Cook County or the Illinois Appellate Court under the Illinois Administrative Review Law. 11 As an alternative to seeking review of Assessed Valuations by PTAB, taxpayers who have first exhausted their remedies before the Board of Review may file an objection in the Circuit Court of Cook County similar to the previous judicial review procedure but with a different standard of proof than previously required. In addition, in cases where the Assessor agrees that an assessment error has been made after tax bills have been issued, the Assessor can correct any factual error, and thus reduce the amount of taxes due, by issuing a Certificate of Error. Certificates of Error are not issued in cases where the only issue is the opinion of the valuation of the property. EQUALIZATION After the Assessor has established the Assessed Valuation for each parcel for a given year, and following any revisions by the Board of Review or PTAB, the Illinois Department of Revenue is required by statute to review the Assessed Valuations. The Illinois Department of Revenue establishes an equalization factor (the "Equalization Factor"), commonly called the "multiplier," for each county to make all valuations uniform among the 102 counties in the State. Under State law, the aggregate of the assessments within each county is equalized at 33-1/3% of the estimated fair cash value of real property located within the county prior to any applicable exemptions. One multiplier is applied to all property in the County, regardless of its assessment category, except for certain farmland property and wind energy assessable property, which are not subject to equalization. Once the Equalization Factor is established, the Assessed Valuation, as revised by the Board of Review or PTAB, is multiplied by the Equalization Factor to determine the equalized assessed valuation (the "EAV") of that parcel. The EAV for each parcel is the final property valuation used for determination of tax liability. The aggregate EAV for all parcels in any taxing body's jurisdiction, plus the valuation of property assessed directly by the State, constitutes the total real estate tax base for the taxing body and is the figure used to calculate tax rates (the "Assessment Base"). The following table sets forth the Equalization Factor for the County for the last 10 tax levy years. TAX LEVY YEAR EQUALIZATION FACTOR 2002 2.4689 2003 2.4598 2004 2.5757 2005 2.7320 2006 2.7076 2007 2.8439 2008 2.9786 2009 3.3701 2010 3.3000 2011 2.9706 EXEMPTIONS The Illinois Property Tax Code, as amended (the "Property Tax Code"), provides that certain property is exempt from taxation. Certain property is exempt from taxation on the basis of ownership and/or use, including, but not limited to, use as public parks, not-for-profit schools and public schools, churches, and not-for-profit hospitals and public hospitals. In addition, the Property Tax Code provides a variety of homestead exemptions, which are discussed in this below. An annual General Homestead Exemption provides that the EAV of certain property owned and used for residential purposes may be reduced by the amount of any increase over the 1977 EAV, up to a maximum reduction of $6,000 for assessment year 2009 and thereafter. 12 The Alternative General Homestead Exemption limits EAV increases for homeowners (who also reside on the property as their principal place of residence) to 7% a year, up to a certain maximum dollar amount each year as defined by the statute. Any amount of increase that exceeds the maximum exemption as defined is added to the 7% increase and is part of that property's taxable EAV. Homes that do not increase by at least 7% a year are entitled, in the alternative, to the General Homestead Exemption as discussed above. For properties in the City Tri, the Alternative General Homestead Exemption cannot exceed $20,000 for assessment year 2009, $16,000 for assessment year 2010 and $12,000 for assessment year 2011. For properties in the North Tri, the Alternative General Homestead Exemption cannot exceed $20,000 for assessment years 2009 and 2010, $16,000 for assessment year 2011 and $12,000 for assessment year 2012. For properties in the South Tri, the Alternative General Homestead Exemption cannot exceed $26,000 for assessment year 2009, $20,000 for assessment year 2010 and 2011 and $12,000 for assessment year 2012. The Long-Time Occupant Homestead Exemption limits the increase in EAV of a taxpayer's homestead property to 10% per year if such taxpayer has owned the property for at least 10 years as of January 1 of the assessment year (or 5 years if purchased with certain government assistance) and has a household income of $100,000 or less ("Qualified Homestead Property"). If the taxpayer's annual income is $75,000 or less, the EAV of the Qualified Homestead Property may increase by no more than 7% per year. There is no exemption limit for Qualified Homestead Properties. The Homestead Improvement Exemption applies to residential properties that have been improved and to properties that have been rebuilt in the two years following a catastrophic event, as defined in the Property Tax Code. The exemption is limited to $75,000 per year, 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 annually reduces the EAV on residences owned and occupied by senior citizens. The maximum reduction is $4,000. Furthermore, property that is first occupied as a residence after January 1 of any assessment year by a person who is eligible for the Senior Citizens Homestead Exemption may be granted a pro-rata exemption for such assessment year based on the number of days during the assessment year that the property is so occupied. A Senior Citizens Assessment Freeze Homestead Exemption freezes property tax assessments for homeowners who are 65 and older, reside in their property as their principal place of residence and receive a household income not in excess of $55,000. In general, this 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. The exempt amount is the difference between (i) the current EAV of the 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. Two exemptions are available to disabled veterans of the armed forces. Specifically, the Disabled Veterans' Exemption, may be applied annually to exempt up to $70,000 of the Assessed Valuation of property owned and used exclusively by veterans, their spouses or unmarried surviving spouses. Qualification for this exemption requires the veteran's disability to be of such a nature that the federal government has authorized payment for purchase of specially adapted housing under the U.S. Code as certified to annually by the Illinois Department of Veterans Affairs. In addition, the Disabled Veterans' Standard Homestead Exemption, provides an annual homestead exemption of (i) $5,000 to those veterans with a service-connected disability of 75% and (ii) $2,500 to those veterans with a service-connected disability of less than 75%, but at least 50%. Also, the Returning Veterans' Homestead Exemption is available for property owned and occupied as the principal residence of a veteran in the assessment year the veteran returns from an armed conflict while on active duty in the United States armed forces. This provision grants a one-time homestead exemption of $5,000. 13 Finally, 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 disabled persons who meet State-mandated guidelines. TAX LEVY As part of the annual budgetary process of governmental units (the "Units") with power to levy taxes in the County, proceedings are adopted by the designated body for each Unit each year in which it determines to levy real estate taxes. The administration and collection of real estate taxes is statutorily assigned to the County Clerk and the County Treasurer. After the Units file their annual tax levies, the County Clerk computes the annual tax rate for each Unit. The County Clerk computes the Unit's maximum allowable levy by multiplying the maximum tax rate for that Unit by the prior year's EAV for all property currently in the Village. The prior year's EAV includes the EAV of any new property, the current year value of any annexed property, and any recovered tax increment value, minus any disconnected property for the current year under the Property Tax Extension Limitation Law (the "Limitation Law"). The tax rate for a Unit is computed by dividing the lesser of the maximum allowable levy or the actual levy by the current year's EAV. EXTENSIONS The County Clerk then computes the total tax rate applicable to each parcel of real property by aggregating the tax rates of all of the Units having jurisdiction over the particular parcel. The County Clerk extends the tax by entering the tax (determined by multiplying the total tax rate by the EAV of that parcel for the current assessment year) in the books prepared for the County Collector (the "Warrant Books") along with the tax rates, the Assessed Valuation and the EAV. The Warrant Books are the County Collector's authority for the collection of taxes and are used by the County Collector as the basis for issuing tax bills to all property owners. COLLECTIONS Property taxes are collected by the County Collector, who is also the County Treasurer, who remits to each Unit its share of the collections. Taxes levied in one year become payable during the following year in two installments, the first due on March 1 and the second on the later of August 1 or 30 days after the mailing of the tax bills. A payment due is deemed to be paid on time if the payment is postmarked on the due date. Beginning with the first installment payable in 2010, the first installment is equal to 55% of the prior year's tax bill. However, if a Certificate of Error is approved by a court or certified on or before November 30 of the preceding year and before the estimated tax bills are prepared, then the first installment is instead based on the certain percentage of the corrected prior year's tax bill. The second installment covers the balance of the current year's tax bill, and is based on the then current tax year levy, assessed value and Equalization Factor, and reflects any changes from the prior year in those factors. The following table sets forth the second installment penalty date for the last 10 tax levy years in the County; the first installment penalty date has been the first business day in March for all such years. 14 SECOND INSTALLMENT TAX LEVY YEAR PENALTY DATE 2002 October 1, 2003 2003 November 15, 2004 2004 November 1, 2005 2005 September 1, 2006 2006 December 3, 2007 2007 November 3, 2008 2008 December 1, 2009 2009 December 13, 2010 2010 November 1, 2011 2011 August 1, 2012 It is possible that the changes to the assessment appeals process described above will cause delays similar to those experienced in past years in preparation and mailing of the second installment in future years. In the future, the County may provide for tax bills to be payable in four installments instead of two. During the periods of peak collections, tax receipts are forwarded to each Unit on a weekly basis. Upon receipt of taxes from the County Collector, the Issuer promptly credits the taxes received to the funds for which they were levied. Within 90 days of the second installment due date, the County Collector presents the Warrant Books to the Circuit Court and applies for a judgment for all unpaid taxes. The court orders resulting from the application for judgment provides for an Annual Tax Sale (the "Annual Tax Sale") of unpaid taxes shown on that year's Warrant Books. A public sale is held, at which time successful tax buyers pay the unpaid taxes plus penalties. In each such public sale, the collector can use any "automated means." Unpaid taxes accrue penalties at the rate of 1.5% per month from their due date until the date of sale. Taxpayers can redeem their property by paying the amount paid at the sale, plus a maximum of 12% for each six-month period after the sale. If no redemption is made within the applicable redemption period (ranging from six months to two and a half years depending on the type and occupancy of the property) and the tax buyer files a petition in the Circuit Court, notifying the necessary parties in accordance with the applicable law, the tax buyer receives a deed to the property. In addition, there are miscellaneous statutory provisions for foreclosure of tax liens. If there is no sale of the tax lien on a parcel of property at the Annual Tax Sale, the taxes are forfeited and the property becomes eligible to be purchased at any time thereafter at an amount equal to all delinquent taxes and interest accrued to the date of purchase. Redemption periods and procedures are the same as applicable to the Annual Tax Sale. The Scavenger Sale (the "Scavenger Sale"), like the Annual Tax Sale, is a sale of unpaid taxes. The Scavenger Sale is held every two years on all property on which two or more years' taxes are delinquent. The sale price of the unpaid taxes is the amount bid at such sale, which may be less than the amount of delinquent taxes. Redemption periods vary from six months to two and a half years depending upon the type and occupancy of the property. TRUTH IN TAXATION LAW Legislation known as the Truth in Taxation Law (the "Law") limits the aggregate amount of certain taxes which can be levied by, and extended for, a taxing district to 105% of the amount of taxes extended in the preceding year unless specified notice, hearing and certification requirements are met by the taxing body. The express purpose of the Law is to require published disclosure of, and hearing upon, an intention to adopt a levy in excess of the specified levels. 1 Includes $408,429,712 incremental valuation in the Village’s tax increment financing district. 2 Local assessors set the fair market value for all real property and railroad property not used for transportation purposes. Railroad property used for transportation purposes is assessed by the Illinois Department of Revenue. 15 2007 2008 2009 2010 2011 Property Class: Residential 1,878,422,371$ 2,026,139,779$ 2,198,443,085$ 2,298,836,300$ 1,763,765,871$ Commercial 572,300,107 638,159,198 595,701,792 388,096,316 499,476,841 Industrial 242,310,888 248,243,038 207,259,989 27,515,890 184,570,112 Railroad 202,163 221,084 266,417 333,270 354,177 Farm 589 589 368 368 - Net EAV for General Taxing Purposes 2,693,236,118$ 2,912,763,688$ 3,001,671,651$ 2,714,782,144$ 2,448,167,001$ Percent Change 24.08% 8.15% 3.05% -9.56% -9.82% TIF EAV 505,665,730$ 529,827,769$ 523,900,898$ 484,429,894$ 435,312,537$ Frozen Valuation 26,882,825 26,882,825 26,882,825 26,882,825 26,882,825 TIF Net EAV 478,782,905$ 502,944,944$ 497,018,073$ 457,547,069$ 408,429,712$ Total EAV for All Taxing Purposes 3,172,019,023$ 3,415,708,632$ 3,498,689,724$ 3,172,329,213$ 2,856,596,713$ Levy Years 2 CURRENT PROPERTY VALUATIONS Valuation 2011 Estimated Market Value $ 8,569,790,139 2011 Equalized Assessed Value1 $ 2,856,596,713 TREND OF VALUATIONS2 1 Some of the taxpayers listed above may own multiple parcels. The valuations stated above for some of the taxpayers may not include all parcels or all classifications of property. 16 LARGER TAXPAYERS 1 Taxpayer Description 2011 Equalized Assessed Value Percent of Village Kraft Foods Corporate Headquarters, Research Campus $37,078,034 1.30% Grubb & Ellis Aon Insurance 35,635,243 1.25% Oliver McMillan LLC Real Property 27,555,654 0.96% Mid America Asset Management Commercial Property 22,515,372 0.79% Cole Real Estate Investments Commercial Property 17,440,036 0.61% Abt Electronics Retailer/Consumer Electronics & Household Appliances 16,130,438 0.56% ITW/Signode Corporate Headquarters/Commercial Tools 14,912,370 0.52% Vi (Classic Residence Hyatt) Senior Residential 14,710,987 0.52% Anixter, Inc. Corporate Headquarters/Wire & Cable Distributor 14,542,335 0.51% AGF Sanders Office Commercial Property 14,198,366 0.50% $214,718,835 7.52% Note: Total Village 2011 valuation of $2,856,596,713 (includes incremental valuation in the Village’s tax increment financing districts). Source:Property Valuations and Larger Taxpaying Parcels provided by Cook County. 17 Per Capita Amount Applicable Assessed Estimated 2010 Census Pop. as of Oct. 2012 Value True Value 44,692 Assessed Valuation of Taxable Real Property, 2011 (1) 2,856,596,713$ 100.00% 33.33% 63,917.41$ Estimated True Value of Taxable Real Property, 2011 8,569,790,139 300.00% 100.00% 191,752.22 Direct General Obligation Bonded Debt (2): Payable from Property Taxes 43,195,000$ 1.51% 0.50% 966.50$ Self-Supporting Debt (3) 76,600,000 2.68% 0.89% 1,713.95 Total Direct Debt 119,795,000$ 4.19% 1.40% 2,680.46$ Overlapping Bonded Debt Payable from Property Taxes (4) Schools 63,608,492$ 2.23% 0.74% 1,423.26$ Other Than Schools 97,768,332 3.42% 1.14% 2,187.60 Total Overlapping Bonded Debt 161,376,824$ 5.65% 1.88% 3,610.87$ Total Direct and Overlapping Bonded Debt 281,171,824$ 9.84% 3.28% 6,291.32$ Total Direct and Overlapping Excluding Self-Supporting 204,571,824$ 7.16% 2.39% 4,577.37$ As Percent of DEBT STATEMENT OF INDEBTEDNESS (excludes Refunded Bonds, includes 2012B Bonds and 2012C Bonds being issued on the same date) Notes: 1. Includes $408,429,712 incremental valuation in the Village's tax increment finance district. 2. The Village is a home-rule unit under the Illinois Constitution and as such has no debt limit, nor is it required to seek referendum approval for the issuance of general obligation debt. 3. The Village has chosen to fund certain projects with general obligation bonds and abate the taxes thereon from non-property tax sources. 4. See "Detailed Overlapping Bonded Indebtedness Payable From Property Taxes". DIRECT GENERAL OBLIGATION DEBT (see schedules following) (includes the Bonds of this offering) Total General Obligation Debt $ 119,795,000 OTHER OBLIGATIONS $1,248,854 Corporate Purpose Notes, Series 1997 (final payment date: September 1, 2019) $453,996 principal amount of various Special Service Area Bonds GENERAL OBLIGATION DEBT LIMIT Pursuant to its population being in excess of 25,000, the Village became a home rule unit when the 1970 Illinois Constitution was adopted. As a home rule unit, the Village has no tax rate or debt limits, nor is it required to conduct a referendum to authorize the issuance of debt or to increase property taxes. 18 Due Series Series Series Series Series Series Dec. 1 2004B 2005 2006A 2007A 2007B 2009A Subtotal 2013 1,175,000 1,275,000 - 575,000 135,000 1,070,000 4,230,000 2014 1,225,000 -0- - 600,000 130,000 1,095,000 3,050,000 2015 -0- 2,350,000 615,000 130,000 1,125,000 4,220,000 2016 2,450,000 635,000 130,000 1,155,000 4,370,000 2017 2,550,000 -0- -0- 1,190,000 3,740,000 2018 2,650,000 1,225,000 3,875,000 2019 -0- 1,270,000 1,270,000 2020 1,310,000 1,310,000 2021 1,360,000 1,360,000 2022 1,410,000 1,410,000 2023 1,460,000 1,460,000 2024 1,520,000 1,520,000 2025 1,580,000 1,580,000 2026 1,645,000 1,645,000 2027 1,715,000 1,715,000 2028 1,785,000 1,785,000 2029 1,860,000 1,860,000 Total 2,400,000$ 1,275,000$ 10,000,000$ 2,425,000$ 525,000$ 23,775,000$ 40,400,000$ Due Series Series Series Series Series Cumulative Dec. 1 2009D 2009E 2012A 2012B 2012C Total 2 Percent 2013 385,000 28,125,000 - 275,000 - 33,015,000 27.56% 2014 1,380,000 -0- - 265,000 1,535,000 6,230,000 32.76% 2015 1,370,000 - 1,540,000 1,595,000 8,725,000 40.04% 2016 1,365,000 - 1,555,000 1,675,000 8,965,000 47.53% 2017 1,360,000 - 1,565,000 1,755,000 8,420,000 54.56% 2018 1,360,000 - 1,600,000 1,810,000 8,645,000 61.77% 2019 -0- 6,070,000 1,610,000 -0- 8,950,000 69.24% 2020 6,215,000 1,645,000 9,170,000 76.90% 2021 6,375,000 1,680,000 9,415,000 84.76% 2022 -0- 1,715,000 3,125,000 87.37% 2023 1,770,000 3,230,000 90.06% 2024 1,800,000 3,320,000 92.83% 2025 -0- 1,580,000 94.15% 2026 1,645,000 95.53% 2027 1,715,000 96.96% 2028 1,785,000 98.45% 2029 1,860,000 100.00% Total 7,220,000$ 28,125,000$ 18,660,000$ 17,020,000$ *8,370,000$ *119,795,000$ * Preliminary, subject to change. SCHEDULE OF BONDED INDEBTEDNESS 1 Notes: 1. Includes the Bonds of this offering, excludes $1,248,854 principal amount of the Corporate Purpose Note, Series 1997, payable to the sellers of the utility company that was acquired in September, 1997. Also excludes $453,996 SSA bonds. The Village has no revenue bonds outstanding. 2. Of the Village's outstanding general obligation bonds, $43,195,000 are payable from property taxes (2004B, 2009A and 2012B) and the remainder are self-supporting from water revenues, sewer revenues and tax increment revenues. 1 Only those taxing jurisdictions with general obligation debt outstanding are included in this section. Village's share based on 2011 real property valuations. Excludes "alternate bonds" considered to be self-supporting from pledged non-property tax revenue sources. 19 as of Oct. 2012 Gross SCHOOL DISTRICTS: Bonded Debt Percent Amount Elementary Districts: Northbrook SD No. 30 1,452,465$ 34.08% 495,000$ West Northfield SD No. 31 2,315,000 43.14% 998,691 Glenview SD No. 34 19,220,000 89.22% 17,148,084 Avoca SD No. 37 2,390,804 8.31% 198,676 Wilmette SD No. 39 15,145,000 5.07% 767,852 East Maine SD No. 63 16,800,000 4.27% 717,360 Golf SD No. 67 5,030,470 9.68% 486,949 High School Districts: New Trier Township No. 203 18,601,854 2.46% 457,606 Maine Township No. 207 11,945,000 1.03% 123,034 Niles Township No. 219 160,438,952 0.81% 1,299,556 Northfield Township No. 225 92,449,554 41.16% 38,052,236 Community College: Oakton No. 535 27,245,000 10.51% 2,863,450 Total Schools 63,608,492$ OTHER THAN SCHOOL DISTRICTS: Cook County 3,389,950,000$ 1.61% 54,578,195$ Cook County Forest Preserve District 94,885,000 1.61% 1,527,649 Metropolitan Water Reclamation District 1,804,668,000 1.64% 29,596,555 Park Districts: Glenview 13,630,000 84.90% 11,571,870 Northbrook 12,925,000 0.31% 40,068 Glenview Special Service Areas 453,996 100.00% 453,996 Total Other Than Schools 97,768,332$ Total All Overlapping District 161,376,825$ Paid From Property Taxes Village's Applicable Share of Gross Debt to be OVERLAPPING DEBT1 20 DEBT PAYMENT HISTORY The Village has never defaulted in the payment of principal and interest on its debt. FUTURE FINANCING The Village continuously reviews its debt service obligation and market conditions in conjunction with its financial advisor. At this time, however, the Village has no plans for additional financing in the next three months. 1 Includes Northfield Township, General Assistance, and Road and Bridge. 21 TAX LEVIES, COLLECTIONS, AND TAX RATES TAX LEVIES AND COLLECTIONS Tax Year Tax Extension Collections to Date and Back Taxes Percent of Current and Back Taxes Collected to Date 2007/08 $13,919,457 $13,589,795 97.63% 2008/09 15,858,539 15,573,739 98.20% 2009/10 17,136,858 16,957,589 98.95% 2010/11 17,919,376 17,835,807 99.53% 2011/12 18,561,309 18,018,066 97.07% In Process of Collection REPRESENTATIVE TAX RATES Following is a typical tax bill for a taxpayer living in Northfield Township tax code 25038 of the Village. Property tax rates are expressed in dollars per $100 of Equalized Assessed Value. Fund 2007 2008 2009 2010 2011 Corporate 0.1833 0.1736 0.1481 0.1620 0.1765 Bond and Interest 0.0723 0.0681 0.0680 0.0760 0.0844 Police Pension 0.0490 0.0395 0.0603 0.0650 0.0744 Fire Pension 0.0637 0.0682 0.0851 0.1050 0.1204 Total Village Rates $0.3683 $0.3494 $0.3615 $0.4080 $0.4557 Cook County $0.4460 $0.4150 $0.3940 $0.4230 $0.4620 Consolidated Elections 0.0120 0.0000 0.0210 0.0000 0.0250 Cook County Forest Preserve District 0.0530 0.0510 0.0490 0.0510 0.0580 Metropolitan Water Reclamation District 0.2630 0.2520 0.2610 0.2740 0.3200 North Shore Mosquito Abatement District 0.0080 0.0080 0.0080 0.0090 0.0100 Suburban TB Sanitarium 0.0000 0.0000 0.0000 0.0000 0.0000 Northfield Township1 0.0480 0.0480 0.0510 0.0600 0.0690 Glenview Public Library 0.1490 0.1950 0.2100 0.2530 0.3030 Glenview Park District 0.4290 0.4290 0.4220 0.4830 0.5380 School District Number 34 1.9530 1.9090 1.8760 2.1600 2.4290 High School District Number 225 1.4030 1.3830 1.3950 1.6090 1.8190 Community College District Number 535 0.1410 0.1400 0.1400 0.1600 0.1960 Total Tax Rate $5.2733 $5.1794 $5.1885 $5.8900 $6.6847 Source: Tax Collections and Tax Rates have been furnished by Cook County 22 THE VILLAGE VILLAGE INFORMATION The Village of Glenview (the "Village") is located in northern Cook County 20 miles from downtown Chicago in the second tier of communities west of Lake Michigan. Its immediate neighboring communities include Wilmette, Northfield, Northbrook, Golf, Morton Grove and Skokie. In 1872, the Milwaukee Railroad (the "Milwaukee Road") laid a single track through the area primarily to haul timber and supplies in connection with the reconstruction of Chicago after the Great Fire of 1872. A parallel track was constructed in 1892 in anticipation of increased travel to the 1893 Columbian Exposition in Chicago. Village residents adopted the name Glenview four years prior to the 1899 incorporation. Today, the Glenview railroad station offers METRA commuter service and serves the entire north and northwest suburban area as the only regular AMTRAK stop between Chicago and Wisconsin. A second commuter station opened in 2001 serving "The Glen" (former Glenview Naval Air Station) and other north suburban residents. Population growth occurred slowly up to 1950 when the Census recorded 6,142 residents. Spurred by the opening of the Edens Expressway (Chicagoland's first expressway to the northern suburbs) along the eastern boundary of the Village, the population increased to 18,132 at the 1960 Census and to 37,093 at the 1990 Census. The 2000 Census recorded a population of 41,847 up 12.8% from the 1990 Census within the Village's 13.5 square miles. A Special Census was conducted in 2005 to account for growth within The Glen resulting in a population of 44,443. The Village’s population at the 2010 Census was 44,692. The strength of the Village of Glenview's local economy is apparent in the median family income figures from the 2006-2010 American Community Survey (ACS) which reported that the average income of Glenview residents exceeded the county and state averages. According to ACS, Glenview's 2006-2010 median family income was $127,815, compared to $65,039 for Cook County and $68,236 for the State of Illinois. Economic Development The Village is primarily residential in character, though it has a significant commercial, corporate, and light industrial tax base, including the Corporate Headquarters of Illinois Tool Works (ITW), a Fortune 200 company; the U.S. Headquarters of Astellas; Signode Corporation, a division of ITW; Corporate Headquarters for Anixter Corporation, which began construction in September 2012 for a 61,898 s.f. addition to its corporate campus - a product of intergovernmental cooperation resulting a Cook County 7b incentive; Corporate Headquarters for Beltone; Corporate Headquarters for Mead Johnson; Corporate Headquarters for North American Paper; Corporate Headquarters for Scott Foresman/Pearson Education; a large corporate presence by Aon (700 employees); a large retail store and distribution facility for Abt Electronics; the Corporate Headquarters of Kraft USA, which Kraft has announced it will close by the end of 2013; and the Kraft General Foods Technology Center, which will remain in Glenview. In addition, the American College of Chest Physicians (ACCP) has recently purchased a 5.25 acre lot for construction of a new 48,000 s.f. Corporate Headquarters and educational facility; building permits are under review, and construction is anticipated to begin no later than Spring 2013. Adjacent lots of 4.02 acres and 3.62 acres, in the Prairie Glen Corporate Campus, adjacent to ACCP, are being marketed for similar developments. Of the Village's total 2011 equalized assessed valuation, 72.1% was classified as residential and 27.9% was commercial/industrial. Significant corporate and commercial areas in the Village include the North Shore Corporate Park, developed in 1996 to include 85 acres of light industrial buildings, which houses five owner occupied and four multi-tenant office/warehouse buildings. Adjacent to the Corporate Park is the Heatherfield Commercial development, which includes a 70,000 square foot Jewel-Osco in a 115,000 square foot building with supporting retail, and the Willow Creek Center with a 135,510 square foot Target store, a 92,800 square foot Kohl's Department Store and between these stores an Office Max, Michael's Arts & Crafts and several outlots including a Pier One, eight national chain restaurants and a bank. 23 The Village has encouraged and approved substantial development along the Sanders Road corridor adjacent to the Illinois Tri State Tollway. In 2004, the Village annexed the 14 acre SBC (now AT&T) building site which houses a regional switching facility. In 2007, the Village annexed a 15.75 acre site housing the Caremark/CVS Corporation in two office buildings totaling 312,417 square feet. In 2008, the Village annexed the 40 acre site of the former Culligan Corporation, and approved a redevelopment plan for the site. Construction of a headquarters office building (418,941 sq.ft.) on this site for anchor user, Astellas Pharma, US Inc., was completed in May 2012 and occupancy now exceeds 1000 employees. Other proposed uses (revised from the 2008 Plan) include a 90,000 square foot grocery, a 40,000 square foot health club, a 16,000 square foot daycare, and 16,000 square feet of general retail facilities, along with 290 multi-family rental residential units in a 483,359 complex; entitlement review will commence in December 2012. In May 2011, the Village annexed a 10-acre site and approved rezoning, preliminary subdivision and a variation for future use as a medical office development by owner Northwestern Memorial Hospital. The Village completed a corridor study of Milwaukee Avenue in 2006 and several significant commercial developments have proceeded as a result of that planning project, including a 14,000 square foot building at 611 Milwaukee which was completed in 2009; a 28,000 square foot commercial center at 1615 Milwaukee which was also completed in 2009; and a 25,000 square foot commercial center at 1701 Milwaukee, which is nearing completion and leasing is underway. In 2009, the Village conducted a similar planning project for the Waukegan Road corridor. While focusing primarily on roadway improvements and traffic study concerns, several commercial properties, which are available for redevelopment, including a vacant Avon distribution facility at Golf Road and Waukegan Road, a former Dominick's grocery store site, and other potential redevelopment sites were identified. The plan will improve the streetscape and traffic flow along the corridor and thereby increase the development value of these properties. The commercial intersection at Chestnut and Waukegan will be reconstructed in 2013, using local and federal funds, as well as revenue from a new Business District. Public and private cooperation has been key to this project which improves traffic flow and public safety as well as enhancing the redevelopment potential of adjacent properties which gain new access to a traffic signal. In 2011, plans were submitted by Regency Centers, a national shopping center developer, for the 20-acre site formerly occupied by a 300,000 square foot Avon Corporation distribution facility near the intersection of Waukegan and Golf Roads. After revisions to address traffic concerns, Regency plans to submit plans for a 75,245 square foot Mariano's grocery store, 25,400 square feet of additional retail, a 4,500 square foot Chase bank, as well as 238 units of multifamily rental residential. Between 2010 and 2012, several large construction projects were completed including a 162,600 square foot addition to the Glenbrook Hospital; complete teardown and rebuilds for 2 McDonald’s restaurants; a new 85,000 square foot Glenview Public Library; a 71,500 square foot expansion of Midwest Palliative Care's hospice pavilion designed to serve 1,000 patients per year, and a new 109,000 square foot office building for the General Board of Pension and Health Benefits of United Methodist Church. The Former Glenview Naval Air Station In 1993, the Department of Defense ("D.o.D.") announced the closure of the 1,121-acre Glenview Naval Air Station ("GNAS") which was entirely within the Village corporate limits. To ensure that the property was expeditiously redeveloped, D.o.D. designated the Village as the Local Redevelopment Authority. In anticipation of a possible base closure, the Village Board adopted a Comprehensive Plan in 1990 which included a conceptual development scenario for GNAS that served as the basis for initial discussions regarding the redevelopment of GNAS. All flight operations ceased on March 1, 1995 and GNAS officially was closed on September 30, 1995. 24 A 93-acre site was retained by the Navy to house military personnel and their families who were stationed at the Great Lakes Naval Training Center in North Chicago, Illinois. The 93-acre site originally contained 400 housing units (140 constructed since 1994). The Navy has studied and reduced its housing needs over the past several years and recently determined that the number of units will decrease to 112. These units are now privatized (turned the maintenance and leasing responsibility for the units over to a private-sector firm). As a result of the reduction in units, 41 of the 93 acres were declared surplus to the needs of the Navy and were sold to the Village in 2007 for mixed use development. Proceeds of the General Obligation Bonds, Taxable Series 2006B provided funds for the land purchase. The Village has received conceptual development interest on this 41 acres for various uses including senior, continuing care, and multi-family market rate housing, as well as educational, institutional, and office uses. The Village commenced a land sale process via a Request for Proposals in July 2012. There is very strong interest in this parcel and the Village is currently evaluating proposals with a plan to sell the property in 2013. Subsequent to the Village purchase of the 41 acres, another 25 acres was purchased by Pulte Homes which received Village approval to construct 40 duplexes, 109 rowhomes, and 2 single family homes, which are now largely constructed. Due in part to the strength of the housing market in Glenview and the particular success enjoyed at Regency at the Glen, Pulte has also committed to building 9 single family homes on a 2-acre site on Lake Avenue in Glenview (not part of the GNAS). Toll Brothers has completed the final phase of its development, Patriot Commons at the Glen, also part of the former GNAS - 9.7 acres developed with 70 condominium units, 30 townhomes, and 20 flats. GNAS Redevelopment Procedure As the Local Redevelopment Authority, the Village's GNAS Land Use Committee conducted a series of public hearings in November and December, 1997 to consider certain land use refinements and on February 3, 1998 the Comprehensive Plan amendment incorporating the final Master Plan for GNAS was adopted. The Village acted as the Master Developer of the entire site (hereinafter "The Glen") and was assisted by a real estate development/management firm (Mesirow Stein Real Estate, Inc., a division of Mesirow Financial), who served as development advisor. Additionally, the Village had the full cooperation of the elementary school districts, the high school district, the Glenview Park District and the Glenview Public Library (collectively the "core" governmental jurisdictions). A key step in the implementation phase was to establish a tax increment financing ("TIF") district for The Glen. Unlike the then existing general tax increment financing statutes in Illinois, the Economic Development Project Area Tax Increment Allocation Act of 1995 (effective January 1, 1996) automatically qualified closed military installations of 500 acres or more for establishing a TIF and allowed specific agreements for reimbursement of governmental costs from incremental revenues of the TIF. In Glenview's case, the incremental revenues include incremental property taxes and 80% of the proceeds of all land sales (20% has been retained by the Village as a developer fee). In April 1998, intergovernmental agreements were executed with the core jurisdictions to reimburse them for their operating costs attributable to the redevelopment. The 2011 core jurisdiction payments totaled $14,869,059 which represents approximately 51% of the total TIF property tax revenue received in 2011 in the amount of $29,281,652. Additionally, the Village has agreed to and is paying $225,000 per year to the Metropolitan Water Reclamation District of Greater Chicago (not a core jurisdiction) during the life of the TIF. The Redevelopment Plan - Infrastructure Improvements In January, 1998, the Village awarded construction contracts in the amount of $22.8 million for the purpose of constructing the on-site Phase I infrastructure improvements which included the removal of some 300 acres of concrete and/or asphalt runways/aprons, the construction of the east collector road (Chestnut Avenue) and half of the north south collector road (Patriot Boulevard) with attendant underground utilities and the excavation of the 45 acre lake site which, in addition to providing recreational amenities for the entire Village, also serves as a centralized storm water detention area for the development and offers long needed, overbank flooding protection for two downstream 25 residential areas in the Village. On-site Phase II through V improvements included the demolition of some 1,000,000 square feet of buildings and completion of roads and utilities to serve the entire site. The Village constructed off-site infrastructure improvements which will also serve The Glen. On April 21, 1998, the Village awarded a $7.3 million contract for the construction of a 6 million gallon off-site water reservoir which was completed in 2001. The total on-site and off-site improvement cost is projected at approximately $185.5 million and approximately $38 million is attributable to off-site improvements directly relating to the development. The Redevelopment Plan - Public Development The 1,121-acre site includes 472 acres of public lands including: the previously discussed 93 acres of Navy Housing; Gallery Park, a 141.8-acre great park which includes the 45-acre Lake Glenview and a 56.1-acre public use campus which includes the $25 million Attea Middle School (opened in August, 2003) and the Glenview Park District's $25 million community center (opened in January 2001); a $3.4 million Metra Commuter Station with 1,500 parking spaces; a 39.3-acre nine hole golf course for the Glenview Park District; 58.6 acres for road right of way and drainage; a 20-acre fire and police training academy; a 32-acre prairie preserve; a 12-acre Village services campus; 2 acres of homeless housing; a fire station; a police station; a U.S. Post Office and approximately 50 acres of miscellaneous public related development. The Redevelopment Plan - Private Development On April 15, 1998, the Village issued its Request for Proposals for development of 649 acres of non-public use lands which were divided into 23 separate parcels designated as single family residential (205.8 acres), multiple family residential (50.6 acres), retail (46.8 acres), mixed use retail (33.1 acres), office/warehouse/light industrial (85.7 acres), senior housing (38.1 acres), an 18-hole championship golf course (180.0 acres) and sports/leisure/entertainment (8.9 acres). Total contractual land sales to date are approximately $226.1 million. The Village's projections, assuming moderate growth of the TIF, call for build-out within the next three years and complete payment and/or provision for payment of all redevelopment costs (including debt service) in approximately ten years. A key project within The Glen is a 45-acre parcel called The Glen Town Center. It was developed by Oliver-McMillan, of San Diego, and is a $135 million mixed use retail center consisting of 470,000 square feet of upscale retail including a 160,000 square foot Von Maur Department store, an 80,000 square foot Dick's Sporting Goods, a 10 screen Regal cinema, 154 townhomes, 181 luxury apartments and several restaurants. The focal point of The Glen Town Center is a adaptive reuse of historic "Hangar One", which includes the retention of the control tower and portions of the north and south facades of the hangar. Adaptive uses include a Von Maur store on one end, Dick’s on another end and multiple retail in the middle. Hangar One fronts the new Main Street and backs up to The Glen Club, an18-hole "Fazio" golf course owned by Kemper Sports. The Village funded certain infrastructure improvements for The Glen Town Center including two parking decks (approximately 1,600 spaces) and public streets. The project opened in the third quarter of calendar year 2003. There are three other retail areas including a 388,000 sf power center anchored by Costco, Home Depot, and Harley Davidson, a 114,300 square foot neighborhood center anchored by a Dominick’s grocery store, and a 32,900 square foot convenience retail center anchored by Egg Harbor and D’Agostino’s restaurants. The sale of 85.7 acres of office and light industrial land to ProLogis/Catellus, now known as the Prairie Glen Corporate Campus, has resulted in the development of several large office buildings, including two multi-tenant buildings of 123,000 and 134,000 square feet respectively, the latter housing the 67,000 square foot corporate headquarters of Mead Johnson. Other key buildings within the Prairie Glen campus include the headquarters buildings of Anixter International Corporation (170,000 square feet) and Beltone (48,900 square feet), as well as a 120 unit Staybridge Suites extended stay hotel, two large daycare facilities and many smaller office buildings. In August 2012, Anixter broke ground on construction of a new 60,000 square foot office building to house 150 additional employees. 26 Additionally in 2012, the American College of Chest Physicians received approvals to construct their new 45,000 sq ft corporate headquarters and training facilities in the campus. There are nearly 2,000 residential units, including 658 single-family homes, 638 multi-family units, and three senior housing developments containing 676 units. The Redevelopment Financing In 1995, the Village sold $60,000,000 General Obligation Bond Anticipation Bonds. Maturities of the Bond Anticipation Bonds were scheduled for December 1, 1996-1999, based on the expectation that title to the land would be transferred to the Village from the U.S. Government within one year or by early in calendar year 1996. Land sales by the Village and tax revenues were expected to produce sufficient cash flow to pay the Bond Anticipation Bonds as they matured. Bond proceeds were used to capitalize interest on each maturity and to provide funds for the proposed infrastructure projects and/or the purchase of land from the U.S. Government. The December 1, 1996 Bond Anticipation Bond maturity was paid from the proceeds of the $8,435,000 General Obligation Bonds, Series 1996. The December 1, 1997 Bond Anticipation Bond maturity was paid from cash on hand. The December 1, 1998 Bond Anticipation Bond maturity was paid from cash on hand and bond proceeds [2009D refunding]. The December 1, 1999 Bond Anticipation Bond issue's final maturity was paid from land sale proceeds. These bonds are fully paid off. In addition to the net proceeds of the Series 1995 Bond Anticipation Bonds, the Village has received approximately $20 million in Federal/State/County grants. Proceeds of the $34,400,000 General Obligation Bonds, Series 1998 [2005 refunding] provided supplemental funds to complete the construction of Phase I infrastructure and to advance certain Phase II construction costs. The demolition of approximately one million square feet of buildings was funded from land sale proceeds. Bond proceeds included an amount equal to a one year's debt service reserve plus capitalized interest for approximately 36 months. The $41.8 million Series 2001 Bonds [2011 refunding] were issued for infrastructure projects at The Glen. The $25 million Series 2004A Bonds [2012A refunding] were issued for additional infrastructure projects at The Glen. The $10 million Series 2006A and $27,940,000 Series 2006B [2009E refunding] were issued for additional infrastructure improvements at The Glen and for the 41-acre land acquisition from the Navy, respectively. After the sale of the 2012C Bonds, principal retirements and refundings to date, the Village will have approximately $73.6 million of Glen related debt outstanding which is scheduled to be fully retired in 2021. The Tax Increment Financing District On May 5, 1998 the Village adopted: (1) an ordinance approving the Glenview Naval Air Station Economic Development Plan; (2) an ordinance establishing the Glenview Naval Air Station Economic Development Project Area; and (3) an ordinance authorizing tax increment financing for the Glenview Naval Air Station Economic Development Project Area of the Village. The TIF totals 1,360 acres and includes the 1,121 acres that previously encompassed GNAS plus 239 acres of largely underdeveloped/undeveloped industrial acreage adjacent to The Glen on the east side. The 1,360 acres had a certified initial equalized assessed valuation of $26,882,825. The TIF 2011 equalized assessed valuation was $435,312,537. The incremental property tax revenues are the product of the current tax rate times the incremental valuation, and are deposited into the Special Tax Allocation Fund (the "STAF"). The Village has determined that it will make available 80% of the land sale proceeds from The Glen (the Village has received title to all 1,121 acres except approximately 52-acres in the Navy Housing area and then resold approximately 650 acres) for purposes of the STAF. If the TIF District remained in place for the entire 23 year period permitted by the authorizing statute and the build-out occurs within the projected 15 years, approximately $600 million would be generated in incremental tax revenues. 27 Municipal Government and Services The Village is a home rule unit under the 1970 Illinois Constitution. The Village has operated under the Council-Manager form of government since 1931. The governing and legislative body consists of a President and a Board of six Trustees all elected on an at-large basis. The appointed Village Manager is responsible for the day-to-day operations of the Village. The Village has a modern complement of public buildings. The Police Administration Building constructed in 1972-1973 was replaced in June 2006 by a building constructed from the proceeds of the Series 2004B. The Fire Headquarters was constructed in 1974 and is scheduled to be replaced with new construction in 2013. Two additional stations (Fire Stations Nos. 13 and 14) were completed in 2004. Fire Station No. 7 was completed in mid-year 2009 ($2.9 million total cost paid from funds on hand). Lastly, Fire Station No. 8 was rehabilitated in 2012. The Village Hall was constructed in 1980-1982 and is planned for rehabilitation in 2013. The Public Library was constructed in 1955, doubled in size in 1967-1968 and again doubled in size in 1984-1986. The Village has entered into an intergovernmental agreement with the Library in which the Village agreed to issue general obligation debt to provide the Library with up to $26.3 million to fund a building program at its current location in downtown Glenview. This 85,000 s.f. project was funded with proceeds of the Series 2009A Bonds and was completed in 2011. The Public Works complex and the Police Headquarters building are adjacent to The Glen. In 1993, the Village annexed a site on its extreme southwestern edge upon which the Solid Waste Agency of Northern Cook County (a consortium of 23 member municipalities including the Village) constructed a $17.5 million transfer station for residential refuse disposal purposes. The transfer station serves the Village and 12 of the member municipalities. The solid waste transfer station is separated from Village residential areas by Cook County Forest Preserve lands and the Illinois Tollroad. As host community, the Village receives certain financial benefits. On September 1, 1992 the Village and the Glenbrook Fire Protection District completed an agreement to merge the District into the Village. As a result, the Village's fire department provides fire related protective services to residents both within the corporate boundaries and adjacent unincorporated areas including a combined service area of 22 square miles. The Village is compensated for serving the unincorporated areas by revenues generated from a real estate tax imposed specifically on that unincorporated area. The Fire department is also responsible for the Village's paramedic program which uses mobile intensive care units. On July 1, 2008, the Village started collecting Ambulance Fees. The excellence of the fire department and the Village's water system is evidenced by the Village's very favorable Class 3 "ISO" fire insurance rating, which was reaffirmed in 2012. The Village's "enhanced" 911 emergency dispatch system became operational on March 1, 1992. During 2006 and 2007, the Village undertook a complex consolidation of its separate Police and Fire dispatching operations to improve service and generate efficiencies. Additionally during this time period, the Village Board invested in and deployed technology upgrades to the Village's Computer Aided Dispatching (CAD) system, Police and Fire records management databases, and Police and Fire mobile computing with the objective of providing the departments with modern communications, improved data management capabilities, and measurement tools for performance accountability. After two-and-a-half years of significant work effort and investment, Glenview Public Safety Dispatch (GPSD) has become one of the leading independent dispatching centers in the Chicago metropolitan area. The center has become a model for what cooperation between Police and Fire Departments can accomplish by working together. This consolidation has made both departments stronger in service delivery and has been a significant step forward towards management of finite economic resources. GPSD is the first point of connection to Glenview citizens when help is needed. GPSD is now prepared better than ever to provide high level support to Police and Fire operations on a 24 hour, seven-day-a-week basis. 28 Since 2009, the Village has entered into several intergovernmental agreements to provide police dispatch services. The initial agreement occurred in February 2009 as the Village entered into a 7-year agreement with the Village of Grayslake ("Grayslake") beginning in October 2009. By expanding existing technology currently used by both municipalities and making one-time capital investments, this cross-county intergovernmental initiative will provide an improved service level to Grayslake residents and the Grayslake Police Department, while maximizing the capital investments already made by the Village. In July 2010, the agreement with Grayslake was enhanced by adding services to the Village of Hainesville, a residential community south of Grayslake. In 2012, the Village of Morton Grove and the Village of Niles entered into 5-year agreements with the Village. This intergovernmental solution is highly cost-effective. Technology innovations, such as radio equipment improvements and Next Generation 911 (which in the future will allow citizens to text message and e-mail 911 centers), reflect the rapidly-rising costs of delivering high-quality, state-of-the-art public safety dispatch services—making it increasingly difficult for single-agency public safety answering points (PSAPs) to shoulder the cost burden. By regionalizing 911 PSAPs, the Village and Grayslake will share the costs of providing 911 dispatch services, rather than burdening each agency's taxpayers. In an effort to improve on these cost savings, the Village will continue to seek additional agencies that would benefit from consolidation. The Northeastern Illinois Public Safety Training Academy was created in 1997 as a joint venture of municipalities and public agencies. It operates a multiregional public safety training facility located on a 20 acre site at The Glen which it has leased from the Village. The Agency has 25 member communities primarily from Chicagoland's north and northwest suburbs. Water System The Village has purchased Lake Michigan water from neighboring Wilmette since 1938 and the present contract for water, which was amended in 1999, extends through 2020. The amendment to the Wilmette contract provides that Wilmette will supply the water needs of The Glen and in consideration thereof the Village funded a $6.26 million improvement project at the Wilmette water plant. In addition to the 44,000 Village residents served by the system, the Village also sells water to approximately 83,000 persons outside the Village (including a population of 20,000 served by Illinois American Water Company previously known as Citizens Utilities of Illinois-see below). In the late 1970's, the Village purchased two private water companies serving parts of the Village that had been annexed and under development since the early 1970's and a significant unincorporated area, the latter of which, for all practical purposes, was fully developed. The Village's agreement with Wilmette was amended to enable the Village to substitute Lake Michigan water for the poor quality well water of the new service area. The funding of the acquisition and upgrading of the two private water companies and the construction of the transmission main to bring lake water from Wilmette came from General Obligation Bonds, the debt service of which was paid with revenues from the benefited areas. Upon the acquisition of the private water companies, the Village adopted a water policy that required a new customer to annex if contiguous to the Village and if not contiguous to sign an agreement to annex when contiguous. This policy has required the development of all properties that inevitably would be in the Village to be built to the Village's life-safety codes. Subdivision-type developments in this area are required to construct their infrastructure comparable to Village design standards. Other potential customers along Sanders Road also in unincorporated Northfield Township (now using well water) include the Allstate Insurance Company. It includes all of Allstate's Corporate offices, the Headquarters for its Life Insurance and Property and Casualty subsidiaries and data processing for all of Allstate. The campus consists of 1,878,000 square feet of office space along both sides of Sanders Road. In late 2000, Allstate expanded into an adjacent 361,071 square foot office building on a 65-acre site previously owned and operated by Accenture. The Allstate complex is contiguous to the Village. These unincorporated properties along with the former corporate headquarters of Household International are also included in the area which now receives fire protection services from the Village. 29 In the early 1980's Citizens Utilities Company of Illinois (now known as Illinois American Water Company) obtained an allocation of Lake Michigan water from the Illinois Department of Natural Resources and requested that the Village sell it Lake Michigan water for distribution to its service area west of Glenview. That area includes approximately 4,953 customers (population of approximately 20,000) in a 4 square mile service area including parts of Mount Prospect, Prospect Heights, and certain unincorporated areas. The Village and Illinois American Water Company entered into an agreement (the Water Supply Agreement) dated March 1, 1984 (subsequently amended) for Illinois American Water Company to purchase its total supply of Lake Michigan water from the Village through September 30, 2020. The Agreement provided for the Village to design and construct the water transmission line and appurtenances and to fund the cost thereof with a 20 year bond issue. In 1997, the Village purchased the assets of a private water company (proceeds came from $6,175,000 General Obligation Bonds, Series 1997 [2003A refunding] and $2,850,000 1997 Note) which serves a population of approximately 40,000 in a primarily unincorporated area of Maine Township adjacent to the Village. The Village has abated and intends to continue to abate taxes levied for the bonds and note issued for the acquisition with water and sewer revenues from the acquired service area. Home Rule and Village Finances Pursuant to its population being in excess of 25,000, the Village became a home rule unit when the 1970 Illinois Constitution was adopted. As a home rule unit, the Village has no tax rate or debt limits, nor is it required to conduct a referendum to increase property taxes or to authorize the issuance of debt. In 1979, the Village created its Capital Equipment Replacement Fund ("CERF") to serve as a funded depreciation account for all capital equipment having a useful life of more than one year and having a value of $5,000 or more at the time of purchase. Current replacement cost of each item is used in determining the charge to each department and a cash interfund transfer is made monthly. The creation of CERF has served to eliminate surges in expenditures funded from current revenues to cover major equipment purchases. As of December 31, 2011, CERF had a cash and investment balance of $5,717,154. The Village created a similar Facilities Replacement Fund in fiscal year 2006 (total cash and investments of $5,440,210 at December 31, 2011). On February 21, 1983 (revised March 1985, January 1990, March 1996, January 2000, February 2005 and May 2009), the Village adopted a Cash Control and Investment Policy that, among other things, provides that all cash and investments must have security in the form of either insurance or collateral (U.S. Governments, Federal Instrumentalities, Federal Agencies, obligations of the State of Illinois or the Village) with pledged collateral either held by the Village or in safekeeping and evidenced by safekeeping documentation. The Village has never resorted to tax anticipation financing and to ensure against same and at the same time protect against unforeseen expenditures, the Village maintains a Fund Balance in the General Fund between 30% and 40% of Total Expenditures including Transfers Out. The audited Fund Balance in the General Fund was $24,218,026 at December 31, 2011. Total Expenditures including Transfers Out for Fiscal Year 2011 were $53,608,954. The Fund Balance was therefore 45% of Total Expenditures including Transfers Out. Excellence of the Village's financial reporting has been recognized for twenty-nine consecutive years (1982 to 2010) by having received the Government Finance Officers' Association's (GFOA) Certificate of Achievement. The significance of the GFOA's award is emphasized by their statement . . . "The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting and its attainment represents a significant accomplishment by a governmental unit and its management." The Village also received the Distinguished Budget Presentation Award for its fiscal year 2008 - 2011 budget documents. 30 Pension Fund Obligations The Village is required by State law to annually provide funds sufficient to accumulate the actuarial requirements of its pension fund obligations. The amounts necessary to fund the Police and Fire obligations have been determined for the Village by a qualified actuary, as described in the Illinois Pension Code. As of December 31, 2010, the Firefighters' Pension Fund actuarial value of assets was $57,176,567 which was 75.67% of the actuarial accrued liability ("AAL"). The Police Pension Fund actuarial value of assets was $53,788,060 and was 90.50% of the "AAL". Per Illinois legislation signed into law in January 2011, by the year 2040, the Village's contributions for the Police and Fire Pension Systems must accumulate to the point where past service cost for the systems is 90% funded. Other full-time municipal employees are covered by the Illinois Municipal Retirement Fund (IMRF). As of December 31, 2011, the IMRF actuarial requirements were 61.45% funded (liabilities exceeded assets by $16,063,642). The IMRF annually determines the contribution rate necessary to provide full funding of the unfunded prior service costs, including interest, over a 30 year period. Pension tax rates are set out in the table of tax rates herein. Schools and Other Governmental Services Within the Village limits are seven elementary public schools, two middle schools, and a senior high school (Glenbrook South). The majority (70.3% by valuation) of the Village is served by Glenview Elementary (K-8) School District No. 34. The District operates three primary grade schools (K-2), three intermediate schools (3-5) and two middle schools (6-8). In 2003, the District completed construction of a $25.0 million new middle school on a 17.3 acre site at The Glen and located in the 142 acre great park. Northfield Township High School District Number 225 serves 91.1% of the Village's valuation. The District's two high schools are in Glenview and in neighboring Northbrook. Three parochial elementary schools are in the Village and the campus of Loyola Academy, a parochial coed high school, is within one-half mile of the Village with its athletic practice fields at a 60 acre site in the Village. Public recreational needs in the Village are provided by the Glenview Park District (separate Municipal Corporation established in 1927). The District's impressive array of facilities and programs has earned it two National Gold Medal Awards for Excellence in the Field of Parks and Recreation Management in the national competition approved by the National Recreation and Park Association and the Sports Foundation, Inc. These Awards cite the District's "continued pursuit of excellence" and the "professionalism which distinguishes its management". The District maintains close to 800 acres including more than 606 acres owned by the District and 165 acres of leased school grounds. The District's special facilities include: a 110-acre, 18-hole golf course with a restaurant offering daily food service and a banquet facility; a 39 acre, 9-hole golf course; an ice center with a full size 85 foot by 200 foot rink (plus an instructional rink) with a concession area and spectator seating for 800 persons; an 8-court indoor tennis facility and two outdoor swimming pools. The District also operates several historical, nature and interpretive centers including The Grove, a 123 acre nature preserve of woods, ponds and trails with four restored buildings including a replica of a school that served the area in 1853 all of which form this National Historic Landmark; Wagner Farm, an 18.8 acre farm dating from the 1840's and converted into a demonstration working farm for educational purposes; Evelyn Tyner Center and Air Station Prairie, a 3,000 square foot educational building which is a showcase for green technology situated on a 32.5 acre native prairie and Schram Memorial Museum, the former navy chapel of the Glenview Naval Air Station. In January 2001, the District's 165,000 square foot ($25.0 million) community building was opened at The Glen's 142 acre great park (Gallery Park). The community building includes a health club, an indoor aquatic complex, large and small gymnasiums, senior program space, banquet facilities, an early childhood wing, a cultural arts wing and a 10,000 square foot healthcare facility operated by North Shore University Healthcare. 31 The recreational efforts of the District are supplemented by a total of 1,131 acres of Cook County Forest Preserves in and adjacent to the Village with both bridle and bicycle paths, picnic areas, etc. along both the eastern and western edges of the Village. In addition to the Park District's two golf courses (an 18-hole and a 9-hole) and the 18-hole "Glen Club" course, within the Village there is one private 18-hole country club, and one private 18-hole executive golf course as a part of a sports club which also includes a clubhouse, tennis courts, paddle tennis courts, an indoor swimming pool and a beach at the 38-acre lake. EMPLOYEES AND UNIONS The Village employs a staff of 293.325 full-time equivalent employees. Other recognized and certified bargaining units include: Bargaining Unit (No. of Employees) Contract Status Firefighters (75) expires 12/31/2014 Police (51) expires 12/31/2015 Public Works (34) expires 12/31/2014 Public Safety Dispatch (15) expires 12/31/2014 LIABILITIES FOR OTHER POST EMPLOYMENT BENEFITS The Village provides post employment health care and life insurance 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 Village and can be amended by the Village through its personnel manual and union contracts. The plan is not accounted for as a trust fund, as an irrevocable trust has not been established to account for the plan. The plan does not issue a separate report. See Note J of the Village’s Annual Financial Report in Appendix A for full details. LITIGATION There is no litigation threatened or pending questioning the organization or boundaries of the Village or the right of any of its officers to their respective offices or in any manner questioning their rights and power to execute and deliver the Bonds or otherwise questioning the validity of the Bonds. The Village’s Attorney reports that any litigation and claims currently pending against the Village are being handled by the Village’s insurance carrier or outside counsel and will not affect the issuance or payments of the Bonds. 1 Not detailed in 2008-2011 as in 2007 and prior years. 32 SUMMARY FINANCIAL INFORMATION Following are summaries of revenues and expenditures for the Village's Governmental Activities for the past five fiscal years. These summaries are not purported to be the complete audited financial statements of the Village. The audits have been prepared in accordance with generally accepted accounting principles. Copies of the complete statements are available upon request. See Appendix A for excerpts from the Village's 2011 financial statements, including the Notes to Financial Statements for fiscal year 2011. Statement of Net Assets Governmental Activities FISCAL YEAR ENDING DECEMBER 31 2007 2008 2009 2010 2011 ASSETS: Current Assets: Cash and Investments $ 85,555,338 $ 84,247,024 $ 77,454,638 $ 71,296,420 $ 68,866,619 Receivables, net of allowances: Tax1 0 16,073,405 17,039,444 19,330,065 18,348,850 Account 970,572 10,443 50,775 37,857 65,213 Other 0 2,390,619 2,449,097 2,992,475 2,283,377 Property Taxes 10,323,824 0 0 0 0 Utility Customers 1,022,506 0 0 0 0 Income Taxes 225,683 0 0 0 0 Sales Taxes 4,995,889 0 0 0 0 Other Taxes 361,937 0 0 0 0 Notes 1,700,000 0 0 0 0 Miscellaneous 380,571 0 0 0 0 Interest 0 0 0 0 0 Deposits 2,398,613 1,397,791 0 0 0 Prepaid Expenses 568,130 211,512 282,739 210,517 172,910 Inventory 266,220 324,287 313,825 419,173 399,371 Land Held for Resale 30,391,262 30,530,693 30,391,262 30,391,262 30,391,262 Internal Balances 0 141,249 60,378 0 3,684,298 Due from Pension Trusts 0 1,377 0 0 0 Due from Other Governments 4,408,241 2,269,909 2,317,691 899,185 94,002 Due from Component Unit 14,480 0 0 0 0 Due from/(to) Other Funds 74,126 0 0 0 0 Due from Fiduciary Funds 0 0 0 0 0 Advance (to)/from Other Funds 0 0 7,710 0 0 Total Current Assets: $143,657,392 $137,598,309 $ 130,367,559 $125,576,954 $124,305,902 Non Current Assets: Deferred Charges $ 289,176 $ 241,195 $ 231,212 $ 197,099 $ 201,804 Advances to Other Funds 330,756 894,386 188,199 3,619,134 22,628 Net Pensions Asset 535,690 605,085 960,193 2,008,434 3,076,062 Capital Assets: Not Being Depreciated 67,001,511 67,941,223 68,006,271 62,802,555 62,081,489 Net of Accumulated Depreciation 141,329,579 138,896,699 139,219,904 140,865,855 139,486,826 Total Non Current Assets 209,486,712 208,578,588 208,605,779 209,493,077 204,868,809 Total Assets $353,144,104 $346,176,897 $ 338,973,338 $335,070,031 $329,174,711 33 2007 2008 2009 2010 2011 LIABILITIES: Current: Accounts Payable $ 4,336,783 $ 7,138,195 $ 6,341,204 $ 16,764,090 $ 17,092,583 Accrued Payroll 331,099 162,309 215,792 193,803 345,955 Accrued Interest Payable 476,925 446,098 363,420 314,402 277,602 Claims Payable 299,411 1,304,140 2,011,679 3,195,069 3,188,986 Other Payables 91,729 77,607 1,304,085 256,406 586,483 Unearned Revenues/Deferred Prop. Taxes 9,638,537 9,876,401 10,609,573 11,146,614 11,011,917 Other Unearned Revenues 376,163 0 0 0 0 Due to Other Governments 117,505 0 0 0 0 Due to Component Unit - Library 0 218,198 0 0 0 Refundable Deposits 4,201,941 154,443 0 0 0 Total Current Liabilities: $ 19,870,093 $19,377,391 $ 20,845,753 $ 31,870,384 $ 32,503,526 Non Current: Other Non Current Liabilities Due Within One Year $ 9,545,607 $ 37,793,076 $ 9,810,013 $ 10,871,305 $ 10,680,754 Due in More than One Year 130,564,187 92,894,672 111,820,537 101,714,284 91,133,698 Total Non Current Liabilities 140,109,794 130,687,748 121,630,550 112,585,589 101,814,452 Total Liabilities $159,979,887 $150,065,139 $ 142,476,303 $144,455,973 $134,317,978 NET ASSETS: Invested in Capital Assets, net of Related Debt $ 83,298,383 $ 78,477,141 $ 87,607,488 $ 93,936,562 $102,217,913 Restricted: Street Improvements 1,231,283 762,480 867,940 1,146,003 952,726 Debt Service 2,870,654 1,203,743 0 0 0 Employee Benefits 0 0 0 0 0 Public Safety 452,367 656,144 461,711 383,098 360,811 Capital Development 49,675,233 46,452,165 38,551,361 28,394,262 22,398,114 Unrestricted 55,636,297 68,560,085 69,018,535 66,754,133 68,927,169 Total Net Assets $193,164,217 $196,111,758 $ 196,507,035 $190,614,058 $194,856,733 Source: Audited Financial Statements of the Village. 34 Statement of Activities Governmental Activities FISCAL YEAR ENDING DECEMBER 31 2007 2008 2009 2010 2011 Functions/Programs (1): Primary Government: Governmental Activities: General Government $(16,411,493) $(23,965,424) $(27,455,891) $(28,404,284) $(30,135,082) Public Works (2) 0 (12,803,090) (11,575,243) (12,323,048) (6,768,555) Public Safety (21,044,319) (23,340,325) (21,175,439) (25,125,712) (20,553,161) Highway and Streets (3) (20,574,346) 0 0 0 0 Development 0 (5,285,484) (3,981,279) (5,841,641) (5,575,033) Interest (6,751,793) (6,068,865) (6,001,886) (4,085,152) (3,353,913) Total Governmental Activities $(64,781,951) $(71,463,188) $(70,189,738) $(75,779,837) $(66,385,744) General Revenues: Taxes: Property $ 29,533,794 $ 37,030,734 $ 33,863,907 $ 34,759,914 $ 40,146,639 Personal Property Replacement Taxes (3) 273,958 0 0 0 0 Home Rule Sales (2) 0 5,531,093 5,920,742 6,177,391 6,354,394 Telecommunication 2,653,127 2,562,607 2,583,457 2,547,946 2,763,469 Utility 3,254,670 3,541,338 3,313,218 3,373,568 3,300,850 Other 1,161,277 1,109,982 841,658 863,580 838,358 Intergov. Revenues - Unrestricted (3) 959,789 0 0 0 0 Taxes: Sales 18,238,196 13,118,090 11,943,633 12,336,353 12,792,723 Local Use Tax (3) 595,772 0 0 0 0 Income 3,933,680 4,207,152 3,612,282 3,497,759 3,823,315 Other Taxes 0 1,214,842 2,161,536 2,284,506 2,502,500 Other 0 271,803 357,770 488,069 0 Investment Income 7,202,556 2,234,453 975,360 731,839 397,478 Special Items - Glen Land Sales 0 0 0 0 0 Miscellaneous 2,473,480 3,301,455 611,793 470,187 464,084 Gain of Sale of Capital Assets 467,801 0 0 0 0 Contributions 0 0 0 0 0 Transfers - Internal Activity (989,499) 287,180 4,399,659 1,777,004 (2,755,391) Total General Revenues and Transfers $ 69,758,601 $ 74,410,729 $ 70,585,015 $ 69,308,116 $ 70,628,419 Change in Net Assets $ 4,976,650 $ 2,947,541 $ 395,277 $ (6,471,721) $ 4,242,675 Net Assets, Beginning 187,633,274 193,164,217 196,111,758 196,507,035 190,614,058 Prior Period Adjustments 554,293 0 0 578,744 0 Net Assets, Ending $193,164,217 $196,111,758 $ 196,507,035 $190,614,058 $ 194,856,733 Notes: (1) Expenses less program revenues of charges for services and operating and capital grants and contributions. (2) Not detailed separately in 2007 and prior years. (3) For 2007 and prior years, intergovernmental revenues were allocated differently than in fiscal year 2008 and after. Source: Audited Financial Statements of the Village. 35 Assets: 2007 2008 2009 2010 2011 Cash & Investments 9,869,442$ 9,076,054$ 14,458,627$ 13,671,121$ 18,010,545$ Taxes Receivable 14,931,868 14,317,523 17,039,444 19,330,065 18,348,850 Other Receivables 120,249 181,816 256,254 400,872 397,910 Due From Other Funds 1,093,151 1,976,836 290,570 61,331 80,975 Due From Other Governments 2,180,930 837,233 733,159 793,612 - All Other Assets 216,583 267,584 88,164 187,752 131,424 Total Assets 28,412,223$ 26,657,046$ 32,866,218$ 34,444,753$ 36,969,704$ Liabilities and Fund Balance: Accounts Payable 692,891$ 2,012,400$ 806,112$ 946,060$ 1,362,421$ Accrued Payroll 306,260 145,559 198,491 150,453 343,773 Due to Other Funds 450,798 170,832 155,686 613,577 127,750 Unearned Revenues 7,992,287 7,894,209 10,324,599 10,551,384 10,818,379 All Other Liabilities 142,353 232,050 1,253,965 105,795 99,355 Total Liabilities 9,584,589$ 10,455,050$ 12,738,853$ 12,367,269$ 12,751,678$ Fund Balance: Reserved 202,583$ 236,776$ 82,583$ 82,583$ 131,424$ Unreserved/Undesignated 18,625,051 15,965,220 20,044,782 21,994,901 24,086,602 Total Fund Balance 18,827,634$ 16,201,996$ 20,127,365$ 22,077,484$ 24,218,026$ Total Liabilities & Fund Balance 28,412,223$ 26,657,046$ 32,866,218$ 34,444,753$ 36,969,704$ FISCAL YEAR ENDING DECEMBER 31 General Fund Balance Sheet Source: Audited Financial Statements of the Village. 36 2007 2008 2009 2010 2011 Revenues: Taxes Property taxes 6,696,271$ 7,817,757$ 9,966,422$ 10,677,217$ 10,864,987$ Other taxes 11,648,623 12,745,020 12,659,075 12,962,075 13,257,071 Licenses and permits 1,317,359 1,491,256 2,437,355 3,190,826 1,859,161 Charges for services 1,092,393 1,945,626 3,889,279 5,174,848 5,868,744 Fines and forfeitures 242,596 174,506 189,433 134,783 181,361 Intergovernmental Sales taxes 13,600,730 13,118,090 11,943,633 12,336,353 12,792,723 Other 9,609,679 9,516,899 8,428,686 8,532,747 9,114,910 Other revenues 1,657,503 124,045 137,977 11,028 3,660 Investment income 747,452 248,005 130,383 265,705 67,220 Total revenues 46,612,606$ 47,181,204$ 49,782,243$ 53,285,582$ 54,009,837$ Expenditures: Current: General government 9,821,208$ 11,750,763$ 12,351,001$ 11,298,997$ 13,673,525$ Public works - 6,645,819 6,544,623 6,587,639 7,883,609 Public safety 23,094,599 24,814,972 23,685,387 25,451,021 25,605,994 Development - 3,618,555 2,734,243 2,607,595 2,448,822 Highways and streets 12,229,547 - - - - Capital outlay - 388,350 - - - Total expenditures 45,145,354$ 47,218,459$ 45,315,254$ 45,945,252$ 49,611,950$ Excess (deficiency) of revenues over expenditures 1,467,252$ (37,255)$ 4,466,989$ 7,340,330$ 4,397,887$ Other financing sources (uses), net (6,434,037)$ (2,588,383)$ (541,620)$ (5,390,211)$ (2,257,345)$ Net change in fund balance (4,966,785)$ (2,625,638)$ 3,925,369$ 1,950,119$ 2,140,542$ Fund balance - beginning 23,794,419$ 18,827,634$ 16,201,996$ 20,127,365$ 22,077,484$ Prior period adjustment - - - - - Fund balance - ending 18,827,634$ 16,201,996$ 20,127,365$ 22,077,484$ 24,218,026$ FISCAL YEAR ENDING DECEMBER 31 General Fund Revenues and Expenditures Source: Audited Financial Statements of the Village. 37 2012 Budget 2012 Projected Actuals REVENUES: Local taxes 24,591,084$ 24,567,977$ Licenses and permits 2,003,000 1,588,000 Fines and forfeitures 122,806 210,000 Charges for services 4,178,653 4,410,611 Intergovernmental 21,760,314 22,605,194 Investment income 34,000 57,000 Other/miscellaneous 597,009 685,562 Transfers in 759,030 722,848 Total Revenues 54,045,896$ 54,847,192$ EXPENSES: Personnel 30,074,662$ 29,959,678$ Contractual 8,835,341 8,667,519 Commodities 1,932,086 1,813,994 Other 5,050,091 5,082,839 Capital outlay 208,750 208,851 Interfund Charges 3,491,714 3,448,430 Transfers 4,468,426 5,107,028 Total Expenditure 54,061,070$ 54,288,339$ Revenues and other sources over (under) expenditures (15,174)$ 558,853$ General Fund 2012 Budget and Projected Actuals 38 Governmental Business Type Activities Activities Capital Assets Not Being Depreciated Capital Assets Not Being Depreciated Land and Land Right of Way 62,081,489$ Land 802,851$ Construction in Progress - Construction in Progress - Total Assets Not Being Depreciated 62,081,489$ Total Assets Not Being Depreciated 802,851$ Capital Assets Being Depreciated Capital Assets Being Depreciated Buildings and Improvements 75,688,788$ Buildings and Improvements 2,613,425$ Machinery and Equipment 10,396,904 Water System 56,431,684 Infrastructure 132,342,461 Sanitary Sewer System 22,256,690 Total Capital Assets Being Depreciated 218,428,153$ Equipment and Vehicles 4,324,597 Total Capital Assets Being Depreciated 85,626,396$ Less Accumulated Depreciation 78,941,327 Less Accumulated Depreciation 25,814,999 Total Capital Assets Being Depreciated, Net 139,486,826$ Total Capital Assets Being Depreciated, Net 59,811,397$ Net Assets 201,568,315$ Net Assets 60,614,248$ Village of Glenview Capital Assets (as of December 31, 2011) Note: Capital assets, which include property, buildings, vehicles, equipment and infrastructure assets (e.g. roads, bridges, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined as those having an estimated useful life greater than one year with an initial, individual cost of more than $25,000. Such assets are recorded at historical cost, or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Capital assets are depreciated using the straight line method over the estimated useful lives. Source: Audited Financial Statements of the Village. 39 GENERAL INFORMATION LARGER EMPLOYERS Larger employers within the Village include the following: Firm Type of Business/Product Estimated No. of Employees Kraft Foods, Inc. and Kraft Technology Center North American Headquarters / Food Products Research 1,440 Abt Electronics, Inc. Retail Consumer Electronics and Major Household Appliances 1,100 Astellas U.S. Headquarters/Pharmaceuticals 1,010 Glenbrook Hospital Health Care 1,000 Illinois Tool Works Corporate Headquarters / Commercial Tools 725 Aon Risk, Reinsurance, Human Resources 708 Glenview School District 34 Public Education - elementary 693 Anixter, Inc. Wire and Cable Distributor and Corp. HQ 668 Pearson Education (Scott Foresman) Corporate Headquarters / Commercial Tools 550 Glenview Terrace Nursing Home Health Care 441 Glenbrook South High School District 225 Public Education - high school 391 Source: Village of Glenview Planning and Economic Development Department The Village is located within the Chicago-Joliet-Naperville, IL-IN-WI Metropolitan Statistical Area (the "MSA"). Larger employers in the MSA include the following: Firm Type of Business/Product Estimated No. of Employees Allstate Insurance Co. Insurance 13,000 Abbott Laboratories Drug Millers (Mfrs), Headquarters 12,000 University of Illinois Chicago College 11,515 Allstate Corp. Insurance Headquarters 10,000 University of Chicago College 8,534 Johnston R Bowman Health Center Rehabilitation Services 8,000 Loyola University Hospital Hospital 7,000 Evanston Hospital Hospital 6,500 Walgreen Co. Pharmacies 6,100 Northwestern Memorial Hospital Hospital 6,000 Source:Infogroup (www.salesgenie.com), Oct 2012. 1 As of August 2012. 2 Non-farm wage and salary employment. 40 Employment by market sector in the MSA1: Employment Sector % of Market Sector within the MSA Mining & Logging 0.04% Construction 3.55% Manufacturing 9.76% Trade, Transportation & Utilities 19.79% Information 1.79% Financial Activities 6.58% Professional & Business Services 17.17% Education & Health Services 14.86% Leisure & Hospitality 9.89% Other Services 4.42% Government 12.16% Total2 100.00% Source: U.S. Bureau of Labor Statistics. 41 Annual Home Rule Annual Year Ended Municipal Percent Sales Percent Dec. 31 Tax (1) Change Tax (2) Change Total 2002 8,765,038$ 22.01% - - 8,765,038$ 2003 10,830,776 23.57% - - 10,830,776 2004 11,632,306 7.40% 1,955,257 - 13,587,563 2005 12,325,158 5.96% 4,078,664 108.60% 16,403,822 2006 13,291,472 7.84% 4,502,099 10.38% 17,793,571 2007 13,600,730 2.33% 4,622,609 2.68% 18,223,339 2008 13,118,090 -3.55% 5,513,663 19.28% 18,631,753 2009 11,943,633 -8.95% 5,915,817 7.29% 17,859,450 2010 12,336,353 3.29% 6,174,935 4.38% 18,511,288 2011 12,792,145 3.69% 6,350,277 2.84% 19,142,422 Percent change from 2002 to 2011 118.40% RETAIL ACTIVITY Following is a summary of the Village’s sales tax receipts as collected and disbursed by the State of Illinois. General Sales and Home Rule Sales Tax (1) Tax distributions are based on records of the Illinois Department of Revenue relating to the 1% municipal portion of the Retailers' Occupation and Service Occupation collected on behalf of the Village 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. (2) The home-rule sales tax rate is 0.75%. Source: Illinois Department of Revenue. 42 U.S. CENSUS DATA Estimated Population Trend: Village of Glenview 2000 Estimated Population 41,847 2010 Estimated Population 44,692 Percent of Change 2000 - 2010 6.80% Housing Statistics Village of Glenview 2000 2010 Percent of Change All Housing Units 15,810 17,746 12.25% Source:2000 and 2010 Census of Population and Housing. Income and Age Statistics Village of Glenview Cook County State of Illinois United States 2006-2010 per capita income $53,246 $29,335 $28,782 $27,334 2006-2010 median household income $107,037 $53,942 $55,735 $51,914 2006-2010 median family income $127,815 $65,039 $68,236 $62,982 2006-2010 median gross rent $1,444 $900 $834 $841 2006-2010 median value owner occupied housing $551,700 $265,800 $202,500 $188,400 2006-2010 median age 44.6 yrs. 35.1 yrs. 36.2 yrs. 36.9 yrs. State of Illinois United States Village % of 2006-2010 per capita income 185.00% 194.80% Village % of 2006-2010 median family income 187.31% 202.94% Source: 2006-2010 American Community Survey 43 EMPLOYMENT/UNEMPLOYMENT DATA Average Employment Average Unemployment Year Village of Glenview Cook County Village of Glenview Cook County State of Illinois 2007 23,587 2,486,631 3.2% 5.2% 5.1% 2008 23,229 2,445,106 4.2% 6.5% 6.4% 2009 22,090 2,324,754 6.9% 10.3% 10.0% 2010 22,158 2,331,864 6.8% 10.5% 10.3% 2011 21,528 2,307,751 6.8% 10.4% 9.8% Source:Employment/Unemployment data was furnished by the Illinois Department of Labor. BUILDING PERMITS 2007 2008 2009 2010 2011 Village of Glenview Permits Issued 2,739 2,837 2,376 2,535 2,552 Value of Construction (000's) $108,455 $106,000 $133,737 $110,191 $98,541 Source: Financial Statements of the Village. A-1 APPENDIX A EXCERPTS FROM FINANCIAL STATEMENTS Reproduced on the following pages are excerpts from the Village's audited Financial Statements for the fiscal year ending December 31, 2011. The Financial Statements have been prepared by the Village and audited by a certified public accountant. The Management’s Discussion and Analysis and the Notes to Financial Statements are an integral part of the audit and any judgment of the Financial Statements should be based on the Financial Statements as a whole. Copies of the complete audited financial statements for the past three years and the current budget are available upon request from Ehlers. No Consent or Updated Information Requested of the Auditor The tables and excerpts (collectively, the "Excerpted Financial Information") contained in the "SUMMARY FINANCIAL INFORMATION" section and in APPENDIX A are from the audited financial statements of the Village, including the audited financial statements for the fiscal year ended December 31, 2011 (the "2011 Audit"). The 2011 Audit has been prepared by Miller, Cooper & Co., Ltd., Certified Public Accountants, Deerfield, Illinois, (the "Auditor"), and accepted by the Village Board of Trustees after a formal presentation by the Auditor. The Village has not requested the Auditor to update information contained in the Excerpted Financial Information; nor has the Village 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 2011 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 Village since the date of the 2011 Audit. Questions or inquiries relating to financial information of the Village since the date of the 2011 Audit should be directed to the Village. MILLE,R C@PE,R &Co.,Ltd Àcco(ir.ft',ust s.\.l\'D CoNsuLr.s-t s INDEPENDENT AUDITORS' REPORT The Honorable Village President and Members of the Board of Trustees Village of Glenview, Illinois We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the Village of Glenview, Illinois, as of and for the year ended December 37, 2071, which collectively comprise the Village's basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the Village of Glenview, Illinois' management. Our responsibility is to express opinions on these financial statements based on our audit. The prior year summarized comparative information has been derived from the Village's December 31,2010 financial statements and, in our report dated June 2'7,2011, we expressed unqualifìed opinions on the respective financial statements of the governmental activities, each major fund and the aggregate remaining fund information. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the agregate remaining fund information of the Village of Glenview, Illinois, as of December 31, 20\I, and the respective changes in financial position and the cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. (Continued) 1 751 Lake Cook Road, Suite 4O0, Deerlield, lL 600 15 I Two North Riverside Plaza, Suite 900, Chicago, lL 60606 847.205,5000 a F ax a47.2O5,1 400 ¡ www.millercooper.com INTERNATIONAL A-2 VILLAGE OF GLENVIEW, ILLINOISManagenent's Discussion and AnalysisDecembcr 31,2011Our disrussion ud æalysis of the Village of Glenview's finmcial perfomæce provides æ overview of theVillage's finæcial acliyities for the fiscal yeu e¡ded Decembe¡ 31, 20ll Please ¡ead it in corjurction with tìetrosmitta'l lelter, which begins on page ix æd the Village's basic finarcial statenrents, whicÏ begin on page 2lFINANCIAL HIGHLIGHTSThe Village's net assets ircreased primæily as a resuh of receiving a major govemenlal revenuesoruce on a timely basis coupled wilh a significut reduction ir govemDlental expenses Net assets ofgovemnreDtal activities Ðd business-fpe activities increased by 84,242,6'15, ot 2 2o/" and 7,384,9 I 6,or 13 8%, respective.ly, resLr.lting in total eudiûg nel assts for t\eyeu of5255,796,949During the yeu, govement-wide revenues before ÎrÐsfers for f-lle govermental æd business-typeactivit.ies totaled Stll,65l,99l, while expenses totaled $100,024,400, ¡esulting in the hcrease ir netassels of$11,627.591The Village's net assets lotaled $255.796,949 or Decembe¡ 3 l, 201 1. which iDclùdes $l 57,784,2 I Iinvested in capjtal assets, net of related debt, $23,711,651 sùbject to exlemal reshictions, æd$74,301,087 westricted net asseis that mС be ùsed to neet the ongoing obligatiotrs to citizeus mdcredito¡s-The Gene¡al Fud ¡eported a surplus for tle yeil of 52,140,542 which is a combiralion of $ 1,045,660for operating results plus $1,094,882 for the tÐsfer of 201I begiming fund balæces from twospecial reveuue ftnds (Joint Dispatch Fud æd Reñ¡se æd Rerycüng Fud) These two fi¡nds we¡eclosed duing the yeã in conjuclion with the.iDplemeilation of GASB 54 ild their aclivity is nowbeirg recorded i¡ flre General Fund The opuating sruplus encompasses ¡igher lhÐ anticipafedi¡creases in sales lax, irìcome tü Ðd the timely collection of p¡operty tu combiDed with savirgsrealized tluoug.h the continued cosl conta.irment efforts by the Village These posilive results wereoffset by a 5700,000 increase 10 the transfer fo fhe Capilal Projecls Fùnd dùrilg the yearUSING THIS ANN TAL REPORTThis urual repofl coDsists of a series of finmcial slalemerls The Slalemenl of Net Assets Ðd the Statement ofActivilies (on pages 2l-24) ptovide infomration about the ac'tivities of the Village as a whole æd preseut alonger-terin view of the Village's finmces Fud fiuancial statenents begin on page 25. For govementalactivities, fhese slalemerts lell how these seryices we¡e financed ir t¡e short tem as well as whal remains forluture spending Fund finmcial slafemenls also rcport 'lhe Village's ope¡afions in mo¡e detail thdì llìegoverment-wide statements by providirg hformtion about úre Village's most significut fmds The renuinirgslatements provide finalcial infomation about fiduciary activities for which the Village acts solely as a truslee oragent for lhe beneû1 ofthose outside ofthe govement.GovernmcDt-Wide Finâncial StateDcnfsThe goverment-wìde ñnæcial statements provide reade¡s wi'th a b¡oad overyiew of the Village's finæces, in amauer simiìil to a privale-secfor business Tle govement wide finmcial slatemqrts cæ be forurd on pages 2l-24 oflhis reportVILLAGE OF GLENVIEIil, ILLINOISManagement's Discussion ând AnalysisDeccnbcr3l,20llUSING THrS ANNUAL REPORT - ConrinuedGoverment-lrVide Financial Statemenfs - CoDtiDuedThe Statemeut ofNet Assets reports info¡nution on a.ll ofthe Villago's assels atrd liabililies, with the differencebelween thc two reported as Det assets Over tinre, increases o¡ dçc¡eases in net assels Dray serve as a usefuljndicato¡ of whethe¡ the fi¡acial position of the Village is improving or deteriorating Co¡sìde¡ation of otherlorfinæcial làctors, such as chægcs i:r thc Villagc's propcly tax l¡asc ard tlc condiljon of thc Vilìagc'sinfrastructue, is reeded to assess the ovcrall lrealth oflhe VillageTÌìe Statemenl of Activjlies presents infomation slowing horv the govemrnerìt's ¡ct ass€ts chmged during thenost recent fiscal year. All changes.in nct assets are repofed as soon as the urdcrlying event giving rise 10 thechægc occrrs, regudless oflhe limirg ofrclalcd cash flows fius, ¡evenues ard cxpenses ac repofed ir thisstatenænt for sone itens that will ody ¡esult i¡ cash flows in futue fiscal periods (e g, uncollecled taxes andeilDcd but unused vacatior leaye)Bol¡ of tho govemerl-wìde finmcial íatemerts dìstinguish funclions of the Village that are princjpallysupported by taxes and intergovcrm)ental revenues (goveruental activities) Êon othe¡ furciions that areintended 10 recove¡ all or a significant portion of ùeir costs llìrouglì user fces and charges (busiDess-typeaclivities) The govenlDeilfal activities ofthe Village include general govenrmcrt, public works, pub)ic safety,ild deyelopment The busiless-type activities oflhe Village include wale¡ a¡d sanita¡y sewe¡ operaljons. NorthMaine waie¡ and sæiÎary sewer operalions, wholesale water operations, and coDruter pıki[g operationsThe ViÌlage inc.ludes one sepãate lega.l entity jn ils repof The Glenview Pul¡lic Library is presented as adiscrefely presented çomponent udt Although legally separate. this "componenl unit" is impotant because theVillage is finarcially accorDìtable fo¡ it Finarcial infomation for the compoDent rìDil is rcported separalcly fromthe firaDcial inlomalion presenled for the primary govemmenl ilself.Fund Financial StatementsA fund is a grouping ofrelated accounls that is r¡sed to mainlain control over resourccs that lìave been sagregatcdfor speciltc activities or objcctives- Thc Village,.lile other local goverments, uses fund accorìntirìg 10 cDsrìrc ÐddeDorlstrate compliance with filalcc-relaled legal requiremerrls All oflhc Âulds ofthc Villagc car be dividcdi¡to thfee categories: govermrenta.l ftnds, proprietary funds, and frduciary fundsGoverDmetrtal FuDdsCove¡ment¿l funds ue uscd to account for essenlially the same funclions ¡eporfcd as govermrc¡ìtal acljliljes rnthe govem)eDt-wide fila[cial staten]ents However, govemmcnlal fuDd filrarcial stalcnrcrts focus on near-lcmlinflows and oufflows ofspcndable resources, as well as ol bala:rces ofspcrdable ¡esourccs avaj!al¡le al fhe end ofilre fiscal yea. Such information my be useful in evaluating the Village's ned-tern finÐcing requireneutsBec¿use Îlìc focus ofgovenrmellal fiulds is nmower than lhal oflhe goyemmeDl-wide firarcial slalenlcDts. it jsuselùJ 1o compue the info¡mation presented for govermrerìtal funds wilh similu inlormation presented forgoverDedal activities in the gove¡mrent-wide luìucial statements By doing so. readers may beúer r¡nderslatdlhe long-fem impacl ofthe govemmcrt's near-tcm filarcilg decisions Both tlìe govcnrmeDlal funds balarcesheet and the govermenlai funds statenenl of¡evenues, expenditures, and chalges in fund balances provide areconciliatiorì to facilitatc thc compaison between govenmenlal ñurds md govermle ntal aclivitiesA-3 VILLAGE OF GLENVIEW, ILLINOISrylâ¡agenent's Discussion and AnalysisDecember 31, 2011USING THIS ANNUAL REPORT - ContinuedGoverMeDtal Fuods - ContimredThe Village ma.intains sixteen individual goverrunental funds IDfoEÉtion is presented sepilately itr fhegove¡D)ental firnds balance sheet aDd in the govemmental funds statenenl of ¡eYenues, expenditucs, aldchmges in fiud balæces fo¡ the Genqal Fund, Special Tu AJlocation Furd, Village Pemment Fud, The GlenLmd Sales Fud ard thc Ge¡c¡âl Obligation Tuable Bo¡d Serics of 2009E Fu¡rd, ¿ll of which uc colsjdqcd 1obe nnjor funds Data from the other €leven govemmental fiuds æe combined i¡lo a single, agg¡egatedpreseDtation Individral furd data for each of these nomajor govemrental ñnds is provided in the fom ofcombiningstatementselsewhe¡einthisreport During201l,ìnconjunctionwiththeimp¡ementationofGASB54,the Village closed seven of these sixteen Gove¡uental FLnds. Specifically, the Vi.llage closed the Re.ñ¡se andRecycling Fund and the Joint Dispatch Furd æd is now repofbg those activjties in the Cereral FúdAddiLionally, the Village closed the Glen Lmd Sales Fud, the Glen Redevelopment Fud, the Glen CdetakerFmd ad the Del¡t Service 2009E Fud æd is reporting those activities il the Special Ta Allocation FundLastly, the Vilìage closed thç 20064 Bond Projects Fund Ðd is now reporting those aclivities ia the Glen CapitalProjecls FuldThe Village adopts ð amual budgel for all ofthe govemD)ental ñmds Budgetary conrpuison schedules fo¡ allbùdgeted fuDds have been provided 10 demoDstrale compliæce wilh this budgetThe basic govenmental fuDd fnilcial staiements cil be foud o[ pages 25-30 of this repolProprietary FundsThe Village mairtai¡s two proprietary frnd types: onterprise ðld i¡lmal service. Enterprise fi¡¡ds ue used 1oreport the sÐe ñrnctions presenled as brniness-tpe aclivities in the govenìment-wide finmcial slatemenls. TheVillage utilizes eDte¡prise ñrnds 10 accorDt for ils water md sæita¡y sewer operations, Nolh Mahe water mdsaritary sewe¡ operations, vlolesale water op@tions, ard cormuter pilking operatioDs Inlemal service fi.uldsare Ð accouting device used lo accumùlate Ðd allocale costs intenìally mong the Vìllage's vuious fi¡nctioDsThe Village uses inlemal seryice funds to accoul for its capilal equipnìent replacement progrm¡ mun.icipaleqùipmeDt re¡rair progrm, facilities replæement progrm Ðd health insumce æd risk mmagement progrÐsThese senices predominætþ beuefit govermental rather thil business-fype fi[clions, æd thereforg have beenincluded with.ín goverDrental activities in the goyermenl-wide fnmcial statements-Proprielary fi¡¡d ñ¡arcial slalemells provide the sme bee of i¡fomation as the govenmenl-wide finæcialsοtenìents, only in more detail The proprietary fiDd fmancial stalements provide separale info¡nation fo¡ theGlenview Water Fund, the North Maine Water ild Sewer Fuud, md the Glenvicw Smilæy Sewer Fund, all ofwlrich ue co¡rsidc¡ed 1o be major funds ofthe Village Data from ihe other fwo proprjeiary funds ae combinedinto a single, aggregated presentation Conversely, lìe inte¡na.l service ñud is presented il the proprietary fi.rndfinmcial stalements in a shgle colLm Individua.l frmd dala for ùe itrtemal seryice firnds is provided eisewhe¡eirl tììjs reportTlìe basic propriotary fund lDæcial stalements cÐ be foùDd on pages 3 1-40 ofthis repolVILLAGE OF GLENVIEW, ILLINOISManagement's Discussion ând AnâlysisDecenlber 31, 201 IUSINC THIS ANNUAL REPORT - ContinuedFiduciary FudsFiduciaryfundsdeusedloaccourìlfo¡¡esorrcesheldfo¡lbebeDefitofpaniesoutsidclhcgovemDlent Fiduciaryfrl¡ìds ãe not feflected in the govenDrant-wide ñræcial stalemelìts because the resources of those fiurds ue no1availablclosuppof1heVillage'sownprograms Theaccountirrgusclbrfiduciaryl'undsismuchlikcthalusedf'orproprietary fiuds The basic fiduciary fund finæcial statements can be found on pages 41-42 oflhis repolNofes to the Finâncial StâteDentsThe notes provide addilional infornution that is essential to a full understanding ofthe data provided .in thegovemment-wide ald ñ¡rd fnæcial slalements The Doles to lhe fina:rcial latenrelts ca¡r be found on pages 43-100 oflhis ¡eportOtber l¡formationt[ addition to the basic financial sialen]ents and accompanyiûg Dotes, this report also preseDls cedajn ¡equiredsupplementary iDfomratioD concemiìg the Village's lllilois MLuricipal Retireruell Fund, police ard ñre pcnsiorfulds, and 01¡er post-enrploymenl benefit enrployee pension obligations T}c rcquircd suppleDeDlar-v;ìfomatioralso contaiDs budgel to actual compilisorì schedules fo¡ the GcDeral Fuld ald nrajor special revetrue fundsRequired supplenctrtary itrformat.ion can l¡e forud on pages l0l-108 of this repo¡t The combining stalenleDts¡efcred 1o earli€r iìr conrìcction with nolmajor govenìD)enial funds ard jnlenal seryicc funds arc prcscnlcdinmediarely following the required supplementary iufo¡nrafion on pensions Combining and indìridual fu¡dstalements and schedr¡lcs for the Village cm be found on pages 109-178 of this report Additionally. thecombinilg and individual fu¡d slatcme¡ls for thc coDponenl rnril car bc foùrd on pagcs ) 79-20 ICOVERNMENT-IilIDE FINANCIAL ANALYSISNel assets mav scne over lime as a useñrl indicalo¡ of a govcnìmenl's finarcial posilion 'l'he foJlowìng 1aìrlesshow that.in tlìe case ofthe Village ofGienview, assets exceeded lìabiJities by 5255,'796,949 at Decen)ber 31,20 -[ l, compded to $244,169,358 at Decembe¡ 3 l. 20 I 0A-4 Nel AsselsGovemrÐtal Businøs-type :201 I20t0 )20ll2010201 I2010CrúrentardOlherAssets $ 12?,606.396$ 131.401.621 $ 10.633,534 $ 8.221.389 $ 138.239.930$ 139.623.010Capilal Assets -Tolal Asses774a4Long-Temr DebtOthe¡ LiâbililiesTotal LiabilitisI 0t.?50,3021t2,000,E3232.455.t415,097,7365.209.8306,t043726. ì 16.49ì106,848.03E37.711.506I ) E.l 09.20434.s1 1.632t34.3t7.978 t44.4s5.973 10.307.566 t2.224.863 t44.625.544 156-ó80.836Nd Assúsl¡!ested in Capilal Assels,Net ofRelaled DeblRestrictedUnrstricled102,217.91323,'| 1,65 )6a,92',1.t6993.936,56229,923,36366;t54,13355.566,2985.373.9t 85),450,4022.104.898) 57,784,21I23,11),6sI74.301.087145.386.96429,923,36368.859.03 lIolal Ne1 Assets733A luge portior ofthe Village's net assefs, $157,784,21 I or 61.7Vo, reflecls ils i¡ìvestmenl in capilal assets (forexmple. i¡ìfrastructure. lmd, buildings ðìd improvemells. machinery, æd equipmcnt), less any related debt ùsed1o acquire dlose assets that is still oùlstading The Village uses these capital æsets 10 provide services to cilizens:conseqr¡ently, ûrese assels ue not available for fritüe spend.ing Althougl the Village's investmenl in its capitalassets is reporled Del ofrelaled debt, it should be loted tlìat tho resou¡ccs ¡eeded to repay this debt musf beprovided ûom other souces, sinca the capital assets tlremselves curol be used to liquidate these liabilitiesA¡ additional pofion, $23,711,651 o¡ 93Vo, oftbe Village's ret assels rep¡eseDls resoÌrces that ãe sùbject toextemal restrictions oD how fhey may be used. includirrg restriclions fo¡ ñrtu¡e street improvemeDts, debl scrviccpayorenls, pùblic safety, ad ñrtue capital development The remaining 290Yo, or $74,301,087, representsunrestriclcd Det assels md may be used to meel the Eol,ement's ongoiDA obligaliolìs to cilizens Ðd credilorsAt dìe end ofdre cruent ñscal yeu, the Village is able to report positive ba.lmces in all úuee calcgories ofnetasseis, both for the govemerf as a whole, as wel.l as for its sepæate govermenta.l md business-type activitiesThe sÐe situafion held 1rue for the previous fiscal yeu, as reflecfed i¡ the table aboveVILLAGE OF GLENVIE\Ù, ILLINOISìVIana gcmcnt's Discussion and Aoalys¡sDeccnrbcr3l,20llCOVERNNIENT-WIDE FTNANCIAL ANALYSIS - CoilinuedNormal ImpactsThe¡e de six basic (nornal) lrÐsactioDs ilrat w.ill affect 1lìe compilability of the S1a1en)eDt of Ne1 Assetssumìalv presentation:l) Net llesults ofActívities -vhicl\ will inpact (increase/decrease) cureDt assets æd unreslricled netassets2) Bototving for Capilal - which will inc¡easc cuncnt assels ild long-1em debl outslÐdi,ì-q3) Spcnding llorrnre.l Pr¡tceeds on Netv Capitul - which will redüce cufclÎ asscts ard :nc¡easecap.ilal assefs There is a s€cond impact, an increase in investcd in capital asscls and a¡ ircrease inrelated net dcbt, wlich will not change tle investnrcnt in capilal assels, nct ofrelated dcbl lotal.l) Spenùing Nottborroved Currcnt -Assets ut Ney'Cø7ilai - which will (a) reduce curretrt assets aldincrease capìlal assets and (b) will rcduce unreslricted net assets aDd inc¡ease inlestDetrt in capilalassels, ,et ofrelaled dcbt.5) Principal Pu7'me|t q1 .D(bt - which will (a) reduce currenl assels and ¡educe long-tern) dcbt and(b) reduce uDrestricled rcl assels and irrc¡ease i¡rvestment i¡ capital assets, nct ofrclated debt6) Rctluctiotl of Capital Assrts through Depreciatio¿ - which will ¡educe capital assÐts and ¡edr¡ceinvestmenl in capilal assets, net of¡elated debtVILLAGE OF GLENVEVr', LLINOISMânâgement's Discussion atrd AtralysisDecenber 31, 2011GO\aERNMENT-WIDE FINANCIAL ANALYSIS - ConfinuedA-5 VILLAGE OF GLENVIEW, ILLINOISManagenent's Discussion and AnalysisDecember 31, 2011VILLAGE OF GLENVìDW, ILLINOISlVlanagement's Discussion and AnalysisDecenrbcr3l,20llGOVERNMENT-\ilIDE FINANCIAL ANALYSìS - ContinuedNorrnal lnr¡actsThere ue eight basic (normal) i¡rpacts on revelues and expetrses as reflected below:R!venLtes:Erp(nser:)) Econornic Conditr¿n - which cal ¡eflect a declinilg, stable, or growilg economic envi¡onorent andbas a subslætial impact on sfate irconre, sales, and ùtility tax reveDue as well as pubJic spendinghabits for building pemìls, elective user fces, æd levels of co1ìsr¡mption2) Incrcotc/Dccrcasc in Vílloge-Approrcd Rqlcs - while certain 1ã rctes ãe set by statute, theVillage Boad has significant authority to impose and periodically inc¡ease/dec¡ease rales (propertytıes, water, sewer, impaø fees. building fees, home rule sales taL elc )3) Changing Patterw in InterE:orcrnmcntal and Grant Rct,cnue þoth Rccrrring ontl Nonreatt ring) -cefair recurring revenues (state-shared revenues, etc ) may experieace sigaificant changesperiodically, while norrccwirg (or one-tinre) !tr¿nls a¡e lcss prcdictable ard offeD dislofing due 10their in)pact oD yeù-to-year çompdisorìs-l) Morket lmpucts ot1 In)eslmetú Inconre - lhe Village's investment poJicy is naraged usìng a siniluavcraAe n)aturily to ¡Dost goveDìDc¡rts Milkct coDditioDs Dray caùse irvcstmcDl i¡rconlc 1o tìuctuafe5) Intro.lilcliott of Nev Prcgrams - wilhir the funclio:ral expç¡rsc calegories Gencral govenrment,public works, public safety, etc ), iadividual progrÐrs may be addcd o¡ deleled 1o meet ch¿ngingôommrulily rceds6) Change in A¡¡horize¿l Perronrul - changes in se¡vice delmd na.v cause $e Village Board 1oinc¡ease/dcc¡ease aufho¡ized staftrng Persoruel cosrs (salary ud ¡elated benefus) representapproximat€ly 622%o oî thc VilJage's Ge¡reral Furrd expendìlures ard approirnately 166To ofenterprise operating costs at December 3 l, 201 I7) Solaty lncrcaset (Annual Adiustntcnts and Mcrit) - the abilitv to attracl ard retaiD huntar ardinlcllectr¡al resourccs reqùires lhe Village to slrive to approach a compctitivc salary rangc posifion irrthe markeþlace8) lnflatiott - while overall inflalion appears 1o be rcasonably modest. the Villagc is a major consunrcrof cefain conuodilies such as supplies, fuels, ad parts Some functions may experience unusualcomod.ity-specifi c increasesltProgra¡¡ RevêDùesCharges for Seruices $Operating CrÐts/ConfitCapial Gants/Cont¡ibGener¿l RevenuesTdesP¡operty TdesHome Rule Sales TuTeleconmlmication TuesUlility TaxesOther TaxesInlergovemeDtalSales TaxSlate IDcore TaxLocal Use TaxRoad and Bridge TaxProperiy Replacement TåxOtherOlher Gene¡al Revenues|,065,323 $ 13,270.809 $22,8682955 2r.155.312 $ 33t33.6t85 34,426,1211,832,805 1,662479 27,854 - 1.860,659 t,662,4792,439.618 2,362.503 2,439.6)8 2,362,5086.998.066 (8248,72s) 4.629.525 2,212,877 11,627.591Tofal RevenEs706$ 194,856.?33 $Bêfore Trnsfe¡sD Net Assetsi¡ N€t Assefs3\33s,91113,e8127110,475,1 l312,I98,1204,085,t529_265.4076,267,8801,948'j571.03320633,9E9,2308.581,36025,169,09710,029.8903,353,9138,795.4666)97,7s21,801.4541,1 19.9949265.44'l6267,8801.948.3571,083,2068,195.4666,t97,1521,801,454I,119.99432,335,9'tl13,981 2n30,475,1 t3t2,198,ì204085,r5233,989,2i08,58t36025,769.097t0,029.8903,353,913CeneEl CoveffinlPublic WorksPublic SafetyDevelopnleniIDterest on LoDg-Tôm DebtWate¡ ServicesNorh Mâine Water ând SewerSuitary SewerageWholesâle lvaTerConDuter PdkingTotal Exp€Nes34,759,9146,177.3912,547,9463,373,568863,580t2,336,353588.758296,062244202I,t5518440,t46,6396.3s4.3942J63,4693,300.850838,3583,E23,315655.076391,336214.8981,241,19034,759,9146,t77.39t2.547,9463,373.568863,58012,336,3533,497,759588,758296,0622442021,155,48440,146,63963s4.3942,763,4693,300,850838,358t2,792,7233,823,3156ss-076391,3362t4.898124),t90Assels-B egjmjngAssets-EDdingA-6 VILLAGE OF GLENVIEV/, LLINOISManâ gem€nt's Discussion and AnalysisDecember 31, 2011GOVERNMENT-WIDE FìNANCIAL ANALYSIS - Co¡tiruedNet assets ofthe Village's govenmertal activities inc¡çased by 22Yo, or 54,242,675 ($194,856,733 in 20llcompared to S190,614,058, in 2010) ln 2010, tle nel assets decreased for govemenlal activities by $6,471,721Uroefficted net assets, the part ofnet assets that cu be used to fi¡ilce day-to-day operations withoul constraitrls,totaled $68,927,169 at Decembe¡ 31, 2011, m increase of $2,173,036 Êom 2010 Net assets ofbusiness-1)?eactivities inc¡eased by 13.8%, o¡ $7,384,916 ($60,940,216 in 2011 compued to S53,555,300 in 2010). ìr 2010,the net assets inc¡eased fo¡ business-type activities by $488,945 Uüestricted net assets totaled $5,373,918 atDecembe¡ 31,2011, m inc¡ease of$3,269,020Goverocntal ActiviticsRevenues:Revenues for govermrental actiyities totaled $88,721,556 al December 31, 20ll md $84,826,908 a1 Decenber3l,20l0,aninc¡easeof$3,894,648 Sonrekeychægesduingtheyeuforthegovemmentalactivit¡lrevenuesuedesc¡ibed below:Chuges for Seryices Revenues in Public Safety decreased S149,215, or 2 8% prinuily l¡ecause of areduction in the revenue received from the Glcnbrook Fire Protection Districl of$129,259. or 4 9%oClræges for Seryices ReverÙes irì Development activity decreased 51,978,732, o¡ 49 5% dueprimuily to a drop in licenses ild pemits revenre of approximtely $1,332,000 which i¡c.ludes adrop ir bu.ilding pemits of $1,100,000 The mjor reason fo¡ dris decline is the one tine buildingpemit revenue ofapproximately S1,500.000 received fo¡ the Aslellas developmenl project ir 2010Property Taxes increased 15 5Yo, o¡ $5,386,725, primuily as a resuh oft¡e Special Tar Allocat.ionFud receiving the ilcremental pfoperty tü distributiotrs from lhe Coünty in a more limely uramer inthan in 201 0Home Rr¡le Sales Ta increæed Êon $6,177,391 at Decembq 31, 2010 to $6,354,394 at December3 1, 20 I l, reflecling a 2 9olo increase due to the gereral increase in the retail sales during the yearInlergovemmenlal tues inc¡eæed $999,920, or 5 5%, which included ar i¡rc¡eæe il Sales Tax of$456,370mda¡inc¡easeinlncomeTaof$325,556 Theinc¡eæeinSalesTaxisduetothegeneralinc¡ease in ¡etail sales duing the yeu while llìe lnconre Tu inc¡ease is the ¡esuh of a onc-timeadjulment in tlìe accounting meilrod used fo¡ this ¡eveuue souceVILLAGE OF GLENVìEW, ILLINOISNlanagement's Discussion atrd AnalysisDecenrber 31, 201 1GO\/ERNMENT-\ülDE FINANCI¡\L ANALYSIS - ConrinucdGoverurental Activities - Continued.Ilcì,sru¿s - ConlitruedThe followirrg table graphically depicts the major reYenue sources of the Village lt depicfs vcry clearly thereliance of property ta\es and sales tdes to fund govermrental activitjes lt also clearly jdentifiss t.he lesssig:r'iñcæl perceltage the Village receives fronr i¡rcome taxes, teleconlD)unicatiol taxes, md ulilit-v tuesRcvtrrut s b¡,{iorl'rc - (..ioverrr¡nr'¡rld -\( I ivilirtlltrernlu"ll, l0llTr-l¡iily Ts):ris,llterger lcrSer¡i.:¿slcletntËriOl"\í Genir¡l?¿þ tìu ¿s11,v.Op È-r tì:ç:ar1óa"t ,..,'(ir !ili'iìi:tiil)/ 2t/¡l¡¡iún14 Tir-4s.4|åCrpl;¡13/tSrles22.12¡Tâ!¿aA-7 VILLAGE OF GLENVIEW, ILLINOISManagenent's Discussion ând AnâlysisDecember 31,2011COVERN'illENT-lillDE FìNANCIAL ANALYSIS - ContinuedGovemental Activities - ConliruedFor the yeu ended December 31, 2011, govermental actirities expenses toraled $81,723,490, a decrease of511,352,143, or l22o/o A portion oflhis dec¡easc was dre 10 lãge one-time expenses of approxiDralely56,000,000 incuned in 2010 th¿t were not incued ia 2011. Specifically, in 2010 the Village incunedapproxinately $5,000,000 fo¡ the trusfe¡ of land to the compoueut uuit in conjmction with the cotrstruction ofthe new lib¡a¡y br¡ilding coupled with dre Village inming app¡oximately S1,000,000 witlir comodities fo¡ thepuchase ofrerycling and refuse carts for residents Additionally, r}e Village ircured approximalely S1,500,000more ìn development expenses through coutributions to the component ùnit in 2010 tlæ it did in 201 I Thesecontributions in 2010 we¡e for the combination of contributions towa¡ds the new library building plus aco¡ûibution for a reliefin rhe library debt swice obligalion In 201 I the Village did no1 incü tbe new buildirgexpense ad had a ¡eduction in the uout for the debt service conlribulion Another conlribúing factor is thereduction in ïhe net expenses for the Inlemal Service fiuds ofnealy $3,000,000 Êom 20 l0 to 201 IThe 'Exporses Ðd Progrm Revenues' lable idenrjfies those govønmental flinctions whqe progran expensesexceed ¡evenues These deficits ae expected dùe 10 the fact thal the govemlenlal fuDøions ue primily supportby general revenues (for iDstance properry taxes aDd sales taxes) rather thm the progÉm reveDues.VILLAGE OF GLENVTEW, ILLINOISNIânâgemeot's Discussion ând AnalysisDecenrber 31, 201 IGOVERNMENT-WIDE FINANCIAL ANALYSìS - ConrinuedBusiness-Type activitiesBusiness-Type actìvities posted total ¡evenues of$22,930,435, while the cost ofall business-type aclivilies loralcdS18,300,910 Ïìis resÌ¡lts in a suplus of$4,629,525 prior lo net lra¡sfers in of$2,755,391 ln 2010, revcnues of$21.160,923 exceeded expenscs of$18,948,046, rcsulting in a sÙrplus ofS2,212,877 prior lo nct f¡Ðrslcrs out ofsl,723,932Re\enuesFo¡ the fiscal year ended December 31, 2011, ¡evenues for the business-type actjvjties lotaled 522,930.435, a[inc¡ease of $ 1,769.5 )2, ot I 4%o, due primarily 1o increased charges fo¡ services (S22,868,295 in 2 0 | I conrpruedro $21,155,312 in 20t0)EÍpensesExpenses for the yea¡ ended Decembe¡ 3 l, 20 I I lotaled $18,300,91 0, a decrease of $674,864, or 3 67o, primarilyas a ¡esult ofa combined dcc¡ease of5862,699 in opcrational expenses ir the Ertcrprisc Funds ofClenvjew'Wafe¡ Fund, Nofh Mai¡re Wate¡ ald Sewe¡ Furd ard Glenview Sanila¡y Sewer FuDd This decrease is ofhet bya mino¡ inc¡ease of 547,252 in operational expenses in the Wholesale Water Fund and the CoDrDuter PdkrDgFurd coupled with an inc¡ease in business-type nonoperating expeuses ofS140.583Esp errsrs ird P¡'0!f iln RerÉrltlès - fioverrrn rntîl "\rtiYitiÉsDecèrnùå'31. f0ll*{[.00r],l)fJ|]û3i.ûûfJ.0û!s30,¡¡¡,00!s?J.ü!¡,úÍtrì420,üüü,ûi_11$ì5.¡r¡û,00!$:0,ùútj,¡¡rlsJ,0ürJ.ûÌlir$lR àiñl¡ÈBÐ+ð:ei..ru'öáeral tublctJorks É\rbticí9aiety Ðeeeiùpm¿nrLor¡¡.Tm[r¡r el$es mrI rr oÐ"rrtr ItÈTprlu es - ßìrn*ineù^s-Tì) eÀ("tiÍti ÉsDece¡nbel iI.201lf I 2,4¡t,iì ú¡$ r c,ntt.í: t$6,00!,(ì!ìùtú.Dùrl,0ilrj 1,0 |J ù, !\ .r 11â¿,ùûû_ttilits"ffi¡a.r¡ÉLuë9¿+ñceitrm&-'"qåtaì5air;ùÈ9 ¡tôr¡:.'iia!:a Seúiry'{iii¡leâle Onfimnt.ri,¡r¡drr sd Se.ôgf33Ê ü'oler F:rhngS:'serA-8 VILLAGE OF GLENVIEW, ILLINOISManagement's Discussion and AnalysisDecember 31, 201 IÌ.INANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDSAs noted eulier, the Village uses ñ¡nd accounting to eDsue æd demoDstaÌe compliæce with finmce-¡elatedlegal requiremfltsGovermenfål FudsThe focus of the Village's govemenlal funds is to provide i¡fornËt.ion otr neil-terDr inflows, outflows, andbalmces of spendable resources ID particulil, weseryed fr¡nd balæce may serye as a usefl¡l nleasute of agoveD)Drent's ¡et resouces available for spendiDg at the eDd ofthe fiscal yeuThe Village's govermenlal fi¡nds reported combining endbg fund balæces of $76,475,826, whjch is $4,489,906,o¡ 5 5olo, lower thar læt yea¡'s total of $80,965,732 Ofthe 576,475,826 total, $24,086,602, or approximately3l 5%, of the fu¡rd balance constifutes massigned fuad balaceGenerol FtndTheGeneralFund¡eportedasuplusfo¡theyeaof$2,140,542,æinc¡easeof97% aportionofwhichwaslhepositive result ofoperalions ard a poliolì was due to the implementatio¡ ofGASB 54 and the resulting transfer inof 201I begimilg furd balæces ûom two special revenue frrnds (Joirrt Dispatch Fund od Refuse æd RccyclingFund). As previously discussed, the suplus as a resùlt ofope¡ations was prirmily the effect ofreceiling higherthu uticjpated sales lÐq i¡come tax ald property tı revenues combined with reduced expenditures as a resultof cost co¡rlainme¡l effols a¡d some expqditures that were not ilcmed or delayed Specifically, totalexpenditues were $2,11'7,121 lower tha budgelThe General Fùnd is the chiefoperating fiud ofthe Village. At Decembe¡ 31, 2011, unassigned fu¡d balæce ilthe General Frurd was 524,086,602, which represenis 99 5% ofthe lo1al fi.rnd bala¡ce oflhe Gene¡al Frutd As aneasrue of the Gene¡al Fud's liquidity, it is usefi¡.l 10 conlpile Lnassigued fi¡nd balmce to fofal fundexpenditures Unassigned ñud balarce in tle General Fund represents approúmafely 44 9% of total Gere¡alFrud expendifures (ilcluding transfers)0ther Mojor FmàtThe Special Tax Allocation Fund is used to accouDl fo¡ the inc¡emental property tax revenue that is generatedthrough the growth of rhe assessed valuation at T) e Glen, (formally referred to as Glenview Naval Air Slatior)and the 'Make-WÌìole' paynrents to core juisdictioDs within the bounda¡ies ofthe Tı lucremerl FinarcingDistricl The corejurisdictiors coDsist of lhe Village of Glenview, School District 34, School District 225, theGlenview Pa¡k Dist¡icl, and the Glenview PubJic Library. a discretely presented conponenl ùtri1 ofthe VillageTlús fund also accounts for d¡e seryice ad i¡cenlive fees wìthin the Tı Increrneni Finmcing District AtDecembe¡ 3 l. 20 I I the Special Tar Allocation Frud reporfed revenues in excess of expenditures by $ I 1,569.380.most of which represents dìe fimsfer .in of the begiming frrnd baluces of fou ñnds (G.len Lmd Sales Fund, theG.len Redevelopment Fùnè the Glen Cuetake¡ Fmd æd the Debt Service 2009E Fund). These firnds we¡eclosed in 20ll in conjuDclio¡r with the implementation of GASB 54 and l¡e activilies that were previouslyreco¡ded in those funds is now being repofed in tlre Special Tar Allocation FudVILLAGE OF GLENVIEW, ILLINOISìVlana gement's Discussion and AnalysisDccenber 31,201 IFìNANCÌAL À\ÄLYSIS OF TIIE GOVERNMENT'S FUNDS - ContinuedGoverlmetrfål ¡'unds - ContiruedOther Mujor Funds - Conti¡uedTbe Village Pcmuenf Fund, reported as a capilal projccts fund, was foncð from20lo of ¡he lad salcs procecdsofThe Glen Ongoing, the ¡esources ue used for Village-wide inproremetrls as well as shofl-tenD Ìiquidity forthe Villlage-s Tu Inc¡emcrt Finmcing (TlF) projects at Tl)e GleD For the year cldcd December:ì1, 201 I theVillage Pemanent Fu)d reported expendilues in excess of¡cvenucs by Si,452,963, primuiìy ilre rcsult of abudgeted 1¡aìsfer Ìo the Capital Projects Fund of54.ó29.035 for capital projects inc)udìng stonn water capitalprojecls and a developmeni expenditue tolali¡g 5983.557 for a conlrib¡tion 1o the Library The uujority ofthecort¡ibulio¡ to the Library uas to lower the required Jery for 1lìe secoDd ycu of debt senicc obligafions on thebonds issued fo¡ the new Library BlildingThe Glen Lard Sales Fund, also repofed as a capital p¡ojects frind. was closed iu 201 I ard the beginring fundbalæce ofS10,057,895 was transfeûed 10 the Special Tu Allocation Furd Thc aclivjtics thal wcre prcviously¡eco¡ded in this fuud, account.ing for the resouces and expcnditures relaled to the sa)e ol propcrties in the ClcrTIF District, will now be ¡eco¡ded i:r the Special Tax Allocarion Fund.The Geue¡al Obligation Taxable Bold Se¡ics of2009E Frurd was also closed in 20ll and the bcgiming fundbalance of $1,404 was fansfeted 10 the Special Tax Allocation Fund The acliyilics that were previous)y¡ecorded in lbis fund, accourtirg fo¡ llre mo¡ries colìecled ard paid for thc Scries 2009E tuable bo¡ds, will nowbe ¡eco¡ded in rhe Special Tax Allocalion FundProprietary FundsThe Vjllage's proprietary funds provide tle sÐìe type of itrfonulio[ fouDd in tlìc goveflrment-wjde fi[ancìaJstatemeDls, b¡ìt ir more delailThe Village ¡eports the Glenview Water, lhe Nofh lVlaine Waler and Sewer. a¡d the Cienview Sanilary SewcrFunds as ma.¡or proprielary funds The Village also rcports two norDÉjor proprietuy funds, llle Wholesalc WalerFund a:rd the Commuter Parking Fu¡d The Glcrview W?le¡ Frùd accou¡rls for the provisioD ofwalcr services tothe property owners itr the Village Thc No¡th Majue Waler Fund âccounls for lbe provision ofwaler and sewersewices 1o 1)re property owncrs in u unincorporaled ùea southwesl ofthe Villagc The Glcnview Sarilary SewerFuld accounts for fhe provision of sarilary sewer scryiccs to propcrtv owDcrs irì both incorporaled andrDrirìcorpo¡ated areas of the VillageThe Village pruchases Lalie Mìchigm watcr ûon neìgùboring Wilnctte The spread betwecû purchase aud saleÉtcs is intcndcd 1o fina¡ce the operaliors ofthe ùtility systcm, inclilding labo¡ cos1s. supplics, and infraslructurcminlenmceThe surplus i¡r lhe Glenview Wate¡ Fùnd during lhe cunent fiscal ¡,car rvæ $1,874.)79, rvhilc thc previous lìscalycu repofed a deûcit of$566,724 The surplus i¡ this fund is thc resuÌt ofma¡age)¡enl md íafl'conlinuing 10¡evicw all revenùe æd expense coûìponents of the Waler Fund Chages fo¡ sales æd scrvices of $9,5 13,470were $646,012, or 7 3%, higher thal last yeu while operalirg cxpcnses wcre $600.668, o¡ 6 57o, lowcr thar lastyeu There wcre no tÉnsfers oÌú lo olher ñurds whilc therc wæ a lotal of 5342.059 i¡r 1¡a¡rsfcrs out last vea¡Unreslricted tret assets in tlìe Gletrview Watcr Fund tolaled 52,491,705 at Deccmbcr 3 l. 201 IA-9 VILLAGE OF GLENVIEW, ILLINOISMânâgement's Discussion and AnalysisDecember 31, 2011FINANC¡AL ANALYSIS OF THE COVERNMENT'S FUNDS - Corti¡uedProprietary Funds - ContinuedThe North Maine Waler æd Sewù Frud ¡eported a suplus for the cuenl yeil of $1,929,840 ad also repoled asruplus in the prior yeu of $428,107. The majority oftle cuent yeu su¡plus is due 1o the lowq thæ anticipaledwate¡purchasecoslsduringtheyeu Operatingrevenuesof$8,120,035were5646,362higherthÐlastyeùÐdoperaling expenses of$5,986,834 were $35,210 lower thm lasl yeil Total net assets at December 31, 2011 we¡es4, I I 0,449The surplus in the cMent yeu in the Glenview Sæitary Sewe¡ Fmd vas S2,074,968, resulring in endìng nctassetsof$1ó,163,320 lntheprioryea¡theGlcnviewSanitarySewerFmdalso¡epotedasurplusof$136,977The cweDt yed surplus was due in luge pãrt to the træsfer in of $1,415,723 which represented a sarilary sewe¡capital asseì that was accouted fo¡ i¡ the Capital Projects FmdCENERAL F¡.IND BUDGETARY HIGHLIGHTSDuing 20ll the Village Boad approved three budget amendmenls'lo tlte GeDeral Fund The fust amendmentwas for æ inrease lola'ling S53 l,ó60 to persorurel seruices, coDûactual scryices, commodilies, olher chdges audintenlal service charges for the combined cosls of a Febnrary 2011 blizud experiøced irr tle Vil)age TbeVillage was declaed a disasler ilea ad due lo the magnitude ofthe stom, expenditDres increased unexpectedlydue 1o overtise, additional coDfractor assistæce æd equipmeDt and fuel costs The second budget mend¡1eD1totaling $950,000 in the T¡msfe¡ 1o the Capital Projects Fund was for dre additional expenditure of resufacirgGlenview Road This trusfe¡ was ¿ magenænl decision to use aoçw!¡lated Gene¡al Fund fund balanceavailable as a resrilt ofa surplus experienced in 2010 The third budget ameudruent tofaling $1,914,531 was acombinatior of a dec¡ease i¡r l¡ansfers out of S 1,370,000 and an irrcrease to opemtjrìg expelditLues of $3,284,53 IThis budget mendment was rìecessary as tlre Village implemented GASB 54 which requircd tle closirg of twospecia.l revenue ñnds (Joint Dispatch Fund ud Refiise æd Rerycling Fund) æd recorditrg the aclivilies of tlìosefi.urds in the Gere¡al Fud ou an ongoing basis As the original 20 I I budget did not include these special revenuefi.uds expenditures, a bùdget mendmenl was required This thi¡d budgel mødment also included mamendment to the Geue¡al Fund Revenues lolaling $2,043,666 to accout for the i¡c¡eased ¡evenue actiyity oftheJoint Dispatch Fud æd the Reñrse ad Recycling Frnd now reported in the General Fud.The Gene¡al Fud actua.l ¡evenues fo¡ the yed lotaled S54,009,837 compaed 10 budgeted ¡evenues of$52,636,611, æ overage of 51,373,226 The qcess of actua.l revem¡es over budgeted ¡evenues is due to æilc¡easeirseveralrevenrìesouces- Specificdly,saleslu¡evenuewæ$48l,000higherlharbudgetasthcsalestu reverues have begu 10 show a slow recovery from the 2008/2009 recession Additiolally, income turevenue was 5379,000 hjgher tlìan budget ofwhich $305,000 was due to a one-time adjustment in the accomtingmethod used fo¡ this revenùe sourçe Another coDrponeil ofdre overage was the 5149,000 FEMA ¡eimbusemetrtreceived during the yeù for tle cosls inc¡qed duing February 2011 blizztd. Lastly, use lax revenÌ¡e was$166,000 ove¡ budget due 10 a state mesty initialive to collect back use t4 These positive iDcreases wereslightly offset by a decrease in intergovermental revenue ¡eceived f¡om dre Glenb¡ook Fi¡e P¡otection District of$208,000. This decrease is due 1o the facl that theìr ¡ever¡e is based on thei¡ Equalized Assessed Valualio¡r(EAV) md their EAV has declined to a lowe¡ level thm the assumplioD used for the budgeted projectionFINANCIAL ÄNALYSìS OF THE GOVERNMENT'S I'UNDS - Conti¡ruedGENER-A.L FUND BUDGETARY IIIGIìLIGIìTS - ContinuedVILLAGD OF GLENVIEW, ìLLINOISN'Ianagement's Discussion and AnalysisDecember 31, 201 IThe Gere¡al Frud actual expendilrues for lbe yed of $49,611,950 we¡e $2,117,121 lower thil budgetedexpenditues of551,729,071 Pqsonrel costs wqe lowe¡ thæ budgel by 5433,000 due to reduced staffing levelscoupledwithbudgeledsalaryinc¡easestïatwe¡enolpaid CoDtractualexpeDdilureswereSl,050,2l0lowe¡thæbudget due 1o a combination ofbudgeled expenditLues either not i¡cLu¡ed or delayed Some ofthe expendituresnot incrwed, such as s¡ow æd ice maintenarce, vehicle mail)tcnæce Ðd strcct sweeping werc due to t¡e velymildweatherexperiencedinNovembe¡mdDecember20ll. Thecommodiliesexpendilureswe¡e$257.119lower thm budget mosily due to lower thu mlicipated gas Ðd eleclrjcity expendilurcs ircuned also due in part1o a very mild Novembe¡ ud Decembe¡ Otber chages we¡e $187,692 lowe¡ than budget due to r¡nspeDtcoDtingenry budgetCAPÌTÄL ASSETS ÂND DEBT ADMINìSTRATIONCapitâl AssetsThe Village's ¡ìvestoreût iD capilal assets for its govermeDtal and busincss type acliviljes as of Decembe¡ ill,20ll was 5262,182,563 (net ofaccumulated depreciation) This iDvestment in capilal assets i:rclr¡des lald,buildings æd improvements. machincry, equipmenl. æd vehicles. water and sÐi1âry sewer systemimDrovemenls, æd othe¡ infrasn¡cture impl ovements12011t.739.659659.t82$in Fud Bala¡ceGeneralFudOrigimìTotal Expendi¡¡es ad Net Trmfe¡ss 24,t22,05821.901.633s 2-3.9r8.75120.711.328$ 23,918.?5120.71'7 328Taxesl¡rtergovenlDeDlalOtberToÞl RevenuesInOutA-10 VILLAGE OF GLENVIEÌY, ILLINOISùIanâgement's D.iscussion and AnalysisDccember 31, 201 1CAPITAL ASSETS AND DEBT ADMINISTRATION - ContinuedCapital Assets - ContinuedThis yeu's major additìons inchrded:Addifional infomatioD on thc Village's capital assets car be fourd in Note D or pages 64-67 ofthis reportCAPITÄL ASSETS AND DEBT ÀDMINISTRATION - Co¡rinuedDebt AdilrinisfrationVìLLAGE OF GLENVIEW, ILLINOISl{anagcment's Discussion ard Anal¡'sisDeccnrber 31, 201 IAt yeu-end, the Village had total outstatrding debf of $104,370,273 as compared to $1.15,409,796 the prevrousyea, a decrease of$11,039,523, or 9 6% which ircluded a redemptioD ofSe¡ics 200i General Obligation Bondsdùring fhe yeu coupled with principal retiremenfs thaf reduced thc oùtslædin-q liabilify o¡ the bo¡ds The1'oìlowirrg is a comparalivc slalcmcnl ofoulslaìditg dcbl:TlìeVillagemainlainsanAaaratingfromMoody'sforgeneralobligationdebt Thisratinghasrolchangedinthepastsevenyeds AstheVillageisahonenrleconrnrunitv,thereislolegallimitforoutstrurdingdebrAdditional info¡mation on the Vil.lage's long-t€m dÈbt cæ be found iu Nole F on pages 10-71 of tlris reponECONOMTC FACTORS AND NEXT YEAR'S BUDGET Ar\D RATESThe Village's elecled ard appointed officials conside¡ed nrð)y facfors when settirg 1lìe fiscal-year 2012 budget,laxrates,andfceslhalwillbechargedforjtsgovermrcnlalandbusiness-typeactivilies Oneof'lhosefactorsisthe ecouomy While some economic indicalo¡s ae pointing to a slow recovery out of the 2008/2009 recessìon,ur er)pl oymcnl rales for thc Village coDliD ued to stay h igh al 6 8% for 20 I I and ificrest ¡a(es )rave remaìned verylow Also, as stated eùlier the Village reveDùes have showr sigrs of fabiìizing, l¡ul uc still lowc¡ thar 2008lerels All ofthese indjcators wcre lalieD inlo accor¡rìt when adopting the budgel for 2012 At the liD)e ofprepü.bg the 2012 budget, it was projeaed $at the Village would conlilue 1o experierce little o¡ no growú inreverues Expendilùes cortintred to be tlim)ed 10 thc fullcf cúcDt possible without impacTiDg co¡c scrvicesprorided Plans for beyond 2012 are also being aralyzed 10 ensùe the Village's Jong lerm econouricsusrainab.ilityREQUESTS FOR ]NFORI,IATIONThis financial ¡eport is dcsigncd to provide a general overview oflhe Villagc ofGlcnvicw's finarccs fo¡ all tlroscwilh u irle¡esl in the govemell's firìðìces Queslio¡rs concem.ing ary of the infomation provided il this rcportor rcquesls fo¡ additional info¡rmlion should be direcled to the Aduirilralive Scrvices Depafment, Village ofGlenview, l225 Waukegæ Road, Clenview, ìllinois 60025Cadtâl Asseß - Net ofDeprecialionGovemertalB6iness-typeAclivir;sAcrivlþsTolal201 I20t020ll2010201 I20t0Construclron ìn Progress $LandLaDd Right of WayBuildings ¿nd lñprovementsMachmery, Equpnrenl and Vehrcles6,935,69455,145,19158,954,0283.369.412'17,t63,386722939 S6,935,69855,143,86859,961,6553.696,2457't,207,9s5- $ ?20.498 $802,851 802,851 7,73E,54955.145,79160,889,0963_916,07211,t6338639.716,981t7 552.6881,443,4477,'t38,54955,t43,86860,894.8924,3'78,44817,201.95539.066,480l5 353 505t,935.06E606.660933231682.203lnfrastructüeWater SysteDSanhary Sewer Syslem39,7I6,98117,552,68839,066,480t5_353 505Totâl$ 20t.568315 $ 203.668.410 S 60.614.248 $ 57.558.774 S 2.t8as63 $ 261.227.tU99,115,000 $109,125,000 $ 3,86q000 $ 4750,cn0 $102,975,000 s113,875,000$lTotal$$Govem¡entalTotd196Bujness-tÐeTenl DeblObJ-lation Bonds $Pùpose NotesTotalsystems9werBuilding and improvementsincluding roa dways, etc$ l,7l9,l9l2,742,1862,716,s70A-11 Village of Glenview, Illinois Statement of Net Assets December 37.2071 Primary Government Component Unit ASSETS Cash and cash equivalents Investments Receivables, net of allowances Taxes Accounts Other Prepaid expenses Inventory Land held for resale Internal balances - advances Due from other governments Total current assets Noncurrent assets Defened charges Due from agency funds Net pension asset Capital assets Not being depreciated Net of accumulated depreciation Total noncurrent assets Total assets $ Governmental Activities Business-Type Activities Total Primary Government Glenview Library 3,743,502 1,335,207 7,010,375 79,797,790 $ 49,668,829 s 25,303,908 $ 54,257,897 6,106,119 4,593,069 18,348,850 65,213 2,283,377 172,910 399,371 30,397,262 3,694,298 94,002 3,502,937 34,074 18,348,850 3,569,744 2,317,457 172,910 458,784 30,391,262 59,413 (3,684,298) 4,167 98,169 724,305,902 10,605,473 134,911,375 11,489,084 28,061201,804 22,628 3,076,062 229,865 22,628 3,076,062 62,081,489 802,851 62,884,340 5,426,987 139,486,826 59,877,397 199,298,223 28,345,581 204,868,809 60,642,309 265,5 I I,l 18 33,772,568 329,174,171 77,247,782 400,422,493 45,261,652 The accompanying notes are an integralpart of this statement. (Continued) A-12 Village of Glenview, Illinois Statement of Net Assets (Continued) December 31.2011 Primary Government Component Unit Governmental Activities Business-Type Activities Total Primary Government Glenview Library LIABILITIES Accounts payable Accrued payroll Accrued interest payable Claims payable Other payables Unearned revenues Due to pension trusts Current portion of long-term liabilities Total current liabilities Noncurrent liabilities Long-term liabilities - due in more than one year Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets, net ofrelated debt Restricted Street improvements Debt service Public safety Capital development Gifts Culture and recreation Unrestricted Total net assets l'1.,092,583 S 345,955 277,602 3,188,986 586,483 ll,0ll,9ll 64,750 22,259,696 $ 353,444 312,830 3, I 88,986 586,483 17,011,917 64,750 $5,767,173 $ 7,489 35,228 392,842 54,226 659 6,976,315 70,616,604 1,066,376 17,682,980 1,095,469 43,184,280 6,276,206 86 9,459,511 91,133,698 4,037,360 95,165,058 23,976,878 91,133,698 4,03 1,360 95,165,058 23,976,878 134,317,978 10,307,566 144,625,544 32,436,389 102,277,973 55,566,298 157,784,271 8,952,568 952,726 952,726 48,053 360,811 22,398,174 360,811 22,398,114 68,927 ,769 5,373,978 74,301,087 253,580 612,979 2,958,083 $ 194,856,733 s 60,940,216 s 255,796,949 s 12,825,263 The accompanying notes are an integralpart of this statement. (Concluded) A-13 Village of Glenview, Illinois Statement of Activities For the Year Ended December 31, 201 I Primary Govemment Program Revenues Expenses Charges for Services Operating Grants and ContributionsFunctions/Proqrams Primary govemment Govemmental activities General govemment Public works Public safety Development Interest Total governmental activities Business-type activities Water services North Maine Water and Sewer Sanitary sewerage Wholesale water Commuter parking Total business-type activities Total primary govemment Component unit - Public Library 100,024,400 $33,933,618 $ $33,989,230 $ 8,581,360 25,769,097 10,029,890 3,353,913 3,854,148 $ 5,195,936 2,015,239 1,812,805 20,000 81,723,490 11,065,323 1,832,805 8,795,466 6,197,752 1,801,454 1,119,994 386,244 9,751,605 8,120,035 2,314,028 2,156,636 525,991 27,854 18,300,910 22,868,295 27,854 $r,860,659 $8,864,899 S 152,884 $1,025,871 General revenues Taxes Property Home rule sales Telecommunication Utility Other Intergovernmental revenues - unrestricted Taxes Sales Income Other taxes Investment income Miscellaneous Transfers - internal activity Total general revenues and transfers Change in net assets Net assets - beginning The accompanying notes are an integral part ofthis statement. Net assets - ending A-14 Primary Government Component Unit Net (Expense)Revenue and Changes in Net Assets Capital Grants and Contributions Govemmental Activities Business-type Activities Total Primary Government Glenview Li&ary $ 2,439,618 (30,135,082) $ (6,768,55s) (20,553,161) (5,575,033) (3,353,913) $$(30,135,082) $ (6,768,555) (20,553, l6l) (5,575,033) (3,353,9 r3) 2,439,618 (66,385,744)(66,385,744) 983,993 1,922,283 512,574 1,036,642 r39,747 983,993 1,922,283 512,574 1,036,642 139,747 4,595,239 4,595,239 2,439,618 (66,385,744)4,595,239 (61,790,50s)$ $(7,686,144) 40,146,639 6,354,394 2,763,469 3,300,850 838,358 12,792,723 3,823,31s 2,502,500 397,478 464,084 (2,75s,391) 26,807 7,479 2,755,391 2,789,677 40,146,639 6,354,394 2,763,469 3,300,850 838,358 12,792,723 3,823,315 2,502,500 424,285 471,563 6,7 57,370 29,000 72t,850 27,244 95,680 70,628,419 73,418,096 7,631,144 4,242,675 7,384,916 11,627,591 (55,000) 190,614,058 53,555,300 244,169,358 12,880,263 $194,856,733 $60,940,216 $ 255,796,949 $12,825,263 A-15 Village of Glenview, filinois Governmental Funds Balance Sheet December 3I,20Il General Fund Special Tax Allocation Fund Village Permanent Fund ASSETS Cash and cash equivalents Investments Receivables, net of allowances Taxes Other Prepaid items Inventory Land held for resale Due from other funds Due from other governments Advance to other funds Total assets LIABILITIES AND FLIND BALANCES Liabilities Accounts payable Accrued payroll Other payables Due to other funds Due to pension trusts Unearned revenues Advances from other funds Total liabilities Fund balances Nonspendable Restricted Unassigned 7,254,072 3,942,109 18,348,850 397,970 13,600 ttj,824 23,891,262 6,5oo,ooo 80,975 18,906,516 $ 36,969,704 $37,767,359 S 30,602,697 $1,362,421 343,773 99,355 63,600 64,150 10,818,379 s 12,991,944 $ 6,750 15,199,590 12,751,678 28,198,284 s$6,447,665 71,562,880 4,763,602 S 7,233,701 1,903,669 75,725 137,424 9,569,074 30,602,697 24,086,602 Total fund balances 24,21 8,026 9,569,074 30,602,697 Total liabilities and fund balances $ 36,969,704 $ The accompanying notes are an integral part of this statement. 37,767,358 $ 30,602,697 A-16 Glen Land Sales Fund General Obligation Taxable Bond Series of 2009E Fund Nonmajor Governmental Funds Total Governmental Funds $$$ 4,641,674 $ 9,944,937 32,723 63,600 94,002 449,021 80,975 186,788 77,706,953 32,683,027 18,348,850 2,234,301 89,325 ll7,824 30,391,262 744,575 94,002 18,906,516 $ $ $ $ $ 14,776,870 $ 120,116,629 s 1,974,057 S 16,328,422 343,773 548,376 744,575 64,150 17,011,917 15,199,590 2,690,841 43,640,803 72,086,029 137,424 52,257,800 24,086,602 12,086,029 76,475,826 $$$ 14,776,870 s 120,116,629 A-17 Village of Glenview, Illinois Reconciliation of the Balance Sheet - Governmental Funds to the Statement of Net Assets December 31. 201 I Total fund balances - governmental funds Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. The net pension asset resulting from contributions in excess of the annual required contribution is not a financial resource and, therefore, is not reported in the funds. Unamortized bond issuance costs are not considered to represent a financial resource and, therefore, are not reported in the funds An internal service fund is used by the Village to charge the costs of vehicle and equipment management and insurance to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Assets. Internal service fund net assets are: Some liabilities reported inthe Statement of Net Assets do not requirethe use of current financial resources and, therefore, are not reported as liabilities in governmental funds. These liabilities consist of: Compensated absences payable (7,483,022) Net other postemployment benefit obligation payable (916,878) General obligation bond payable, net of unamortized items (99,350,402) Accrued interest payable Q7',7,602) Total long-term liabilities not reported in governmental funds Net assets of governmental activities $ 76,475,826 201,568,315 3,076,062 201,804 75,562,630 (102,027,904) $ 194,856,733 The accompanying notes are an integralpar| of this statement. A-18 Yillage of Glenview, Illinois Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficit) For the Year Ended December 31. 201 I General Fund Special Tax Allocation Fund Village Permanent Fund Revenues Taxes Propefty taxes Other taxes Licenses and permits Charges for services Fines and forfeitures Intergovemmental Investment income Other revenues Total revenues Expenditures Current General government Public works Public safety Development Capital outlay Debt service Bond issuance costs Principal Interest and fiscal charges Total expenditures Excess (deflciency) of revenues over expenditures Other financing sources (uses) Payment to bond escrow agent Issuance ofbonds Transfers in Transfers (out) Total other financing sources (uses) Net change in fund balance Fund balances (deficit) - beginning Fund balances - ending $ 10,864,987 13,257,071 1,859,161 5,969,744 I 8l,361 21,907,633 67,220 3,660 S 29,281,652 $ 1 7,1 80 248,874 132,149 176,503 54,009,837 29,856,358 13,673,525 7,883,609 25,605,994 2,449,922 77,479,494 8,694 38,818 8,94s,000 2,903,359 49,611,950 29,375,365 4,397,997 480,993 156,000 150,969 306,969 983,557 983,557 (676,588 1,739,659 (3,997,004) (l 1,000,000) I 1 ,03 5,000 11,329,664 (276,277)(4,776,37 s',) (2,257,345) 11,088,387 (4,776,375) 2,740,542 22,077,484 I 1 ,569,3 80 (2,000,306) (5,452,963) 36,055,660 The accompanying notes are an integral parl ofthis statement. s 24,218,026 s 9,569,074 s 30,602,697 A-19 s Glen I¿nd Sales Fund General Obligation Taxable Bond Series of 2009E Fund Nonmajor Govemmental Funds Total Govemmental Funds s 40,146,639 13,257,071 1,859,161 6,lll,l75 l g l,36l 26,342,403 397,478 205,014 31,153,019 7,gg3,6og 25,710,435 4,293,220 8,336,649 38,818 10,051,617 3,762,159 (l1,000,000) I 1,035,000 31,368,232 (33,163,914) (1,760,682) (4,489,906) 80,965,732 $$ 69,257 4,lg5,g96 47,140 24,851 4,327,138 88,500,302 104,441 860,841 9,327,955 7,106,617 858,800 71,258,654 91,229,526 (6,931,516)(2,729,224) (l 0,057,895)(1,404) (l,404) 18,298,909 (14,054,959) 4,243,950(10,057.89s) (l 0,057,895) 10,057,895 (1,404) 1,404 (2,687,566) 14,773,595 $$$ 12,086,029 g 76,475,826 A-20 Village of Glenview, Illinois Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended December 3l, 201 I Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the lives ofthe assets. Capital outlays Depreciation expense Depreciation expense over capital outlays A net pension asset is considered to represent a financial resource and, therefore, is not reported in the funds. The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal on long-term debt consumes the current financial resources of the governmental funds. Reductions to compensated absences payable $ Retirement of debt Issuance ofbonds Amortiution of unamortized premium/discount Amortization of unamortized bond issuance costs Change in other postemployment benefits Net affect of long-term debt Changes to accrued interest on long-term debt in the Statement of Activities does not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Internal service funds are used by the Village to charge the cost ofvehicle and equipment management and insurance to individual funds. A portion of the net revenue of the internal service fund is reported with governmental activities. Change in net assets of governmental activities s 3,069,756 (5,169,85 1) 99,777 2r,045,000 (1 1,035,000) 371,446 4,705 (230,633) s (4,489,906) (2,100,095) 1,067,628 10,255,235 36,800 (526,987) s 4,242,675 The accompanying notes are an integralpart ofthis statement A-21 Village of Glenview, Illinois Proprietary Funds Statement of Net Assets December 31. 2011 Business-Type Activities Glenview Water Fund North Maine Water and Sewer Fund Glenview Sanitary Sewer Fund ASSETS Current assets Cash and cash equivalents Investments Receivables Accounts, net Other Interest Prepaid items Inventory Internal balances - advances Due from other governments Total current assets Noncurrent assets Deferred bond issuance costs Capital assets, not being depreciated Capital assets being depreciated - net Total noncurrent assets Total assets $498,779 $ 1,618,055 1,401,737 11,686 4,255,507 $ 1,452,274 7,167,704 1,900 409,682 833,132 678,712 20,488 59,413 (3,684,298) 3,5gg,o7o 3,193,081 1,882,014 10,417 533 88s 16,122,186 34,617,482 6,213,769 16,132,603 38,200,552 9,406,250 18,074,617 9,746 67,851 5,204 235,000 5,972,965 The accompanying notes are an integral part of this statement. A-22 Business-Activities Governmental Activities Nonmajor Enterprise Funds Total Enterprise Funds Internal Service Funds $942,756 $ 679,607 6,106,118 $ 4,593,068 3,502,931 34,074 2,090,837 16,985,808 65,213 40,000 9,076 83,585 281,547 314,778 674,1 59,413 (3,684,298) 4,167 7,947,308 1 73 79,556,066 28,061 802,851 59,8 11,397 3,685,055 60,642,309 5,626,363 71,247,782 79,556,066 2,694 500,000 3,792,361 (Continued) A-23 Village of Glenview, Illinois Proprietary Funds Statement of Net Assets (Continued) December 31,2071 Business-Activities Glenview rùy'ater Fund North Maine Water and Sewer Fund Glenview Sanitary Sewer Fund LIABILITIES Current liabilities Accounts payable Accrued payroll Accrued interest payable Claims payable Current portion of long-term liabilities Total current liabilities Noncurrent liabilities Long-term liabilities due in more than one year Total noncurrent liabilitres Total liabilities NET ASSETS Invested in capital assets, net ofrelated debt Unrestricted Total net assets 377,957 28t 79 242,000 3,747,072 717,260 7,406,796 7,554,729 1,074,037 7,406,786 7,554 729 1,074,037 2,792,068 5,295,807 1,851,297 32,926,779 14,806,149 7,357,1772,497 705 s 35,418,484 s 4,110,449 S 76,163,320 $7,047,852 $ 4,540 4,933 3,431,677 $ 2,279 25,697 530,863 521 3,876 4,371,817 (267,368) The accompanying notes are an integral part of this statement. A-24 Business-Type Activities Governmental Activities Nonmajor Enterprise Funds Total Enterprise Funds Internal Service Funds $156,721 $ 149 722 5,767,113 $ 7,489 35,228 764,167 2,182 38, I 07 3,1 gg,gg6 220,808 1,062,184 378,400 6,272,014 3,993,436 4,035,552 4,035,552 379,400 10,307,566 3,993,436 3,467,553 1,786,410 55,566,298 5,373,978 15,562,630 s 5,247,963 s 60,940,216 $ 75,562,630 (Concluded) A-25 Village of Glenview, Illinois Proprietary Funds Statement of Revenues, Expenses, and Changes in Net Assets December 31 201 Activities Glenview Vy'ater Fund North Maine Water and Sewer Fund Glenview Sanitary Sewer Fund Operating revenues Charges for sales and services Miscellaneous Total operating revenues Operating expenses Operations Insurance services Parking services Water services Sewerage services North Maine water and sewer distribution Capital asset repair and replacement Depreciation and amortization Total operating expenses Operating income (loss) Nonoperating revenues (expenses) Other income Investment income Loss on sale ofcapital assets Grant proceeds Interest and fiscal charges Total nonoperating revenues (expenses) Income (loss) before transfers Transfers in (out) Transfers in Transfers (out) Total transfers in (out) Change in net assets Net assets - beginning Net assets - ending $ 35,418,484 $ 4,110,449 $ 16,163,320 $9,513,470 $ 238,135 8,011,886 $ 108,149 2,307,006 7,022 q 75t,605 g,l2o,o35 2,314,028 7,462,168 1,123,335 5,788,267 198,567 1,258,106 401 186 1,659,2928,585,503 5,996,934 1,166,102 2,133,201 654,736 8,1 86 (140,872) 27,854 (69,091) 7,557 (210,918) (203,361)(129,s63) 7,479 5,120 (87,876) (54.286) 73,923 992 179 882,000 1,929,840 52s,173 l,5g2,7oo (32,90s) 882,000 1,549,795 1,874,179 33,544,305 l,g2g,g4o 2,lgo,609 2,074,968 14,088,3s2 The accompanying notes are an integral part of this statement. A-26 Activities Governmental Activities Nonmajor Enterprise Funds Total Enterprise Funds Internal Service Funds $$2,673,027 $ 9,600 22,505,389 362,906 10,524,135 241,241 2,682,627 22,868,295 10,765,376 3 18,659 1,035,360 135,495 318,659 8,497,528 1,258,106 5,788,267 1,959,583 7,587,243 3,282,501 1,489,514 17,721,143 5,147,152 10,869,744 I 004,368)193 ll3 5,944 (r6,724\ 7,479 26,807 (228,748) 27,854 (351,019) 62,808 396,573 (l0.780)(5t7,627)459,3 8l 1,182,333 1,072,876 3,537,576 (782,185) 355,013 (749,280)(882,000) 323,596 2,755,391 (882,000) 1,505,929 3,742,034 7,394,916 53,555,300 (s26,e87) 16,089,617 $ 5,247,963 $ 60,940,216 $ 15,562,630 A-27 Village of Glenview, Illinois Proprietary Funds Statement of Cash Flows For the Year Ended December 31. 201I Business-Activities Glenview Water Fund North Maine Water and Sewer Fund Glenview Sanitary Sewer Fund Cash flows in operating activities Cash received from customers and users Cash payments for goods and services Cash payments to employees Net cash provided by (used in) operating activities Cash flows in noncapital financing activities Interfirnd receipts (disbursements) Net cash provided by (used in) in noncapital financing activities Cash flows in capital and related financing activities Purchases and disposals ofcapital assets Principal payments Interest payments Net cash provided by (used in) capital and related financing activities Cash flows in investing activities Purchases of investments Interest received 1,846,846 5,179,399 1,145,202 909,854 99,640 1,549,795 909,854 99,640 1,549,795 $ 9,653,833 $ (6,118,162) (1,688,825) 8,057,213 $ (1,9tt,376) (966,438) 2,283,343 (760,455) (377,686) (1,534,584) (298,063) (69,965) (171,221) (241,459) (213,757) Q,359,030) (234,883) (54,972) (1,902,612)(626,437) (2,648,885) (1,302,840) 9,1 86 (1,002,226) 7,557 (501,481) 5,120 Net cash used in investing activities (1,294,654)(994,669) (496,361) Net increase (decrease) in cash and cash equivalents (440,566) 3,657,933 (450,249) Cash and cash equivalents, beginning ofyear 938 74s 597,568 859,93 I Cash and cash equivalents, end ofyear The accompanying notes are an integral part of this statement. s 498,179 $4,255,501 S 409,682 A-28 Business-Activities Governmental Activities Nonmajor Enterprise Fwrds Total Enterprise Funds Internal Service Frurd s 2,541,669 $ (1,280,683) (74,061) 22,536,058 $ (10,070,676) (3,107,010) 10,678,117 (9,874,223) (855,433) l,lg6,g25 9,358,372 (5 1,539) 323,596 2,gg2,gg5 323,596 2,gg2,gg5 (882,062) (1,072,876) Q20,000) (17,403) (5,137,711) (994,405)62,808 (1,3 10.219)(6,488,213)62,808 (500,976) 5,944 (3,307,523) 26,807 (8,431,809) 408,594 (495,032) (3,280,716) (8,023,215) (294,790) 1,237,546 g 942,756 $ 2,472,328 (8,894,008) 3,633,790 10,984,845 6,106,118 $,837 (Continued) A-29 Village of Glenview, Illinois Proprietary Funds Statement of Cash Flows (Continued) For the Year Ended December 3 I . 201 I Business-Type Activities Glenview 'Water Fr¡nd North Maine Water and Sewer Fund Glenview Sanitary Sewer Fund Reconciliation of operating income (loss) to net cash provided by operating activities Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by operating activities D epreciation and amortuation Nonoperating revenue Accounts receivable Other receivable Prepaid expense Inventory Accounts payable Accrued payroll Compensated absences Claims payable Unearned revenue Total changes in assets and liabilities Net cash provided by operating activities $ 1,166,102 $ 2,133,201 $ 654 736 1,123,335 198,567 401,186 7,479 (97,772)(62,822)(39,206) 1,042 15,525 (339,943) (6,675) (13,126) 2,917,582 (7,129) 120,286 (321) (442,591) 2,847,631 81,801 $ 1,846,846 $ 5,179,399 $ 1,145,202 The accompanying notes are an integral part of this statement. A-30 Business-Type Activities Governmental Activities Nonmajor Enterprise Funds Total Enterprise Funds Internal Service Fund $ 1,193,113 S 5,147,152 $ (104,368) 135,495 1,858,583 7,479 (140,958)(340,7s8) 1,042 (67,356) (2,542) (7,597) 165,056 (8,746) (6,083) (19,903) (141,683)2,345,158 52,829 $ 1,186,925 s 9,358,372 $ (51,539) Q62) (463) 15,525 2,697,663 (14,588) (13,726) (Concluded) A-31 Village of Glenview, Illinois Fiduciary Funds Statement of Fiduciary Net Assets December 31. 201I Pension Trust Funds Agency Funds ASSETS Cash and cash equivalents Investments U.S. government and agency obligations Municipal obligations Equity mutual funds Receivables Properly taxes Accrued interest receivable Due from primary government Prepaid expenses Total assets LIABILITIES Accounts payable Refundable deposits Accrued expenses Advances from other funds Due to bond holders Total liabilities NET ASSETS Held in trust for pension benefits $ 3,574,976 S 642,497 53,428,004 1,237,575 45,097,074 3,785,575 189,551 64,150 1,977 273,008 3,420 103,587,247 4,704,500 45,543 4,269,202 8,952 22,628 368,127 8,952 $ 4,704,500 $ 703,578,295 The accompanying notes are an integralpart ofthis statement. A-32 Village of Glenview, Illinois Pension Trust Funds Statement of Changes in Plan Net Assets For the Year Ended December 31. 2011 Additions Contributions Employer Participant s 4,574,947 34 710 5,909,657 1,355,109 1,515,348 (205,271) 2,665,186 8,574,843 5,452,922 492,604 509,203 29,677 6,484,406 2,090,437 101,487,858 $ 103,578,295 Total contributions Investment income Net appreciation in fair value of investments Interest income Less investment expeße Net investment income Total additions Deductions Retirement pensions Widow pensions Disability pensions Contribution refunds Total deductions Change in net assets Net assets held in trust for pension benefits Beginning Ending The accompanying notes are an integral part of this statement. A-33 Village of Glenvieq lllinoisNotes to Fimrcial StaterentsINDEXDecembe¡31.2011A Srrmry of Significant Accoutiag Policiesl ReportiryEutity2 Goverent-wide aud Fund Fimncial S tateætrß3 Fund Accoutiag4 Fund Balauce5. Measuemcnt Focu, Basis of Accoutiug and Fimrcial Stâtement PreseDtation6 CashEquivalent7 IDvestuFnß8 Ræeivable9 IowntoryI 0. Unbilled S e¡vices11. Capital Assets12 Urea¡red RevenueI3. Acc¡ued Vacation and Sick Leave (Compemated Absences)I 4. Long-Tem Obligatiom1 5 Capital Cont¡ibutioNI 6. Interfu¡d Tnmactioro17.Use of EstimtsI 8. Clais aud JudgmentsB. Deposib aDd Inreshentsl. Primry Govermut aDd Compoænt Unit2. PesioD Trut FudsC ReceiwblesI Property Tax Receiwbles2 Taxes Receiwble3 Othe¡ Receiwbles4. Due F¡om Othe¡ GovemntsD Capital Asse6I Gove¡rentalActivities2, Buims-t¡pe Activities3 Depreciation Expeme4, Comporent Unit - Glenview LibraryVillage of Glenviey lllinoisNotes to Fimmial StatemeDtsINDEX (Contiawd)Deccmb€r31.20I1PasePage464748-505t52-54545455555555-56565656-5757575858E Risk MamgemntI Self-Irouarce2 Intergovemnlal Persomel BeEfit Cooperatire (IPBC)3 HigÞLevel Exces Liability Pool (HELP)F LoDg-TerE DebtI Changes inLong-TemLiabilities2. Geæral Long-Tem Debt3. Debt Seryice Requiretrnts to Matuity4 Norcomitrrcnt Debt - Spccial Service ArÉ Bonds5 Compeuated Absemes and Other Postemployrent Beæhß6 Revolving LireofCreditG. Interfud Bal¿rcc and Tmrofe¡sl. Interfund Balarces2. DE tolfroE PeNion T¡ut3. Admrces to/from Othe¡ FmÀs4 Interfu¡d Tramfe¡sa Primry GovermeDtb Comporent UnitÌl ContractualCo¡mihentsI High-Level Erces Liability Pool (HELP)2 S olid Waste Agency of Northm Cook Couty (S WANCC)3 Ecommic Developmnt Agreeænt4. Comtruction CotmituentsI- Joint VenhresI High-Level Ercss Liability Pool2 Solid Wasæ Agercy of NorthernCook Couty68696970 -7374-7s76-777777176062626363OJ646566676L78787979-8080808l81818l8l(Continued)(Continued)A-34 Village of Glenview, IllinoisNotes to Fimrcial StatementsINDEX (Continæd)December 31. 20llEmployee Retirerent S )6tem1 Illi¡ois Muicipal Retirerent Funda PlanDescriptionb F,,nrting policyc Amul Peroion Costsd Fù¡ded Statu and Funding Progress2 Police Peuion Funda PlanDescriptionh Sumry of Sipifrcant Accouting Policiesc Amul Pemion Cost a¡d Net Peroion Berefitd T¡end Info¡mtion3 Fireûghteß' Peroion Funda. PlanDescriptionh Sumry of Significant Accouting Policiesc Amul Pemion Cost and Net Peroiou Berefitd T¡end Info¡mtion4 Employee Retirement S)Ætem - DefiÀed Berefrt Pemion PlamK Other Postemplo)rcnt Berefib (OPEB)1 Plau Description2 Fuding Policy3 Amul OPEB Cost and Net OPEB ObligatioD4 T¡end I¡fo¡mtion5 Funding Policy and Acturial Assmptiom6 FuudingSbtu andFmding ProgressL Peßiou TruÎ Funcls - Fimrci¿l DataI Schedule of Fiduciary Net Plan Assets as of December 3 l, 201 I2 ScheduleofChangesinFiduciaryNetPlanAssetsfo¡theYea¡EudedDecember3I,20llM Fud Balarce ReportingN Couti¡gerciesI GÉnts2 LitigationO Subseqænt EventPaeeVillage of Glenview, IllinoisNots to Fimrcial StatementsDecember3l.20llNOTE A - SIJMMARY OF SIGNIFICANT ACCOLTNTING POLICIESThe Village of Glenview, Illinois, ("Village") ms itrcorporcted ia 1899 The Village operates uder a Cowil-Mamgerfom of govemeDt and provides services which imlude: police aDd fue safety, water utility, sanitary sewer utility,stormwater mmgeæil, steet mintemrce, commity developmnt and gereral a¡lmìnistative servicesThe fmmial statemnts of the Village bave beeû prcparcd itr coDfomity with accomti4 primiples geærally accepted iDthe United Stats of AEerica (GAAP), as applied to govement uits The Govemntal Accouting Standards Board(GASB) is the accepted standârd setting body for stablishirg goverueutal accoutirg and fmmial reporting priruiplesThe followirg is ¿ srm*ary of tIæ Village's mre significant accoutirg policie:l. Reportins EntitvAs defred by accoutiag prircipla geærally accepted in the United States of Amrica established by GASB, thefmrcial reporting entity comiss of the primry goveruent as well as its component uit, which are legallyseparate organiztioro fo¡ which the elected officials of thc prirury govermnt are fimrcially accoulâble, Fimrcialaccoutability is defned as;(u) Appointrreil of a voting mþrity of the comporent uils board, and eitber (l ) tbe ability to impose will by theprimry govermen! or (2) tlre possibility that the comporeDt uit will provide a lmrcial benefrt to or imposea fmucial buden on tbe primry govermDt or(b) Fiscal dependercy on ttre primary govemntBased on tle above criteria, the Glenview Lib¡a¡y ("Library'') is a comporent uit to the Village of Glenview. Iu thegovemeDt-wide fiMrcial stateænß, tbe Library is p¡esented in a separate coltru to emphasiæ that it is legauyseparate from the VillageThe Library operates and mintair the public library withh tÌÉ Village The Library's seve+rcmber boa¡d isseparately elected by tbÊ voters of tle Village and amully deterDines its budget and resr:lting tax levy, which islevied by the Village The Library my mt issæ bo¡ded debt All debt of the Library is secued by the fi¡ll faith andcredit of the Village, which is wholly liable for thÊ debtSeparate fimúial statemDß are disclosed in the comporelt mit portion of this ¡eport The Library does rct issueseparate fi mrciâl s t¿lemeDß8282838384-8585-87888889-9090 -929393949495959696-97989899100100100100(Coucluded)A-35 Village of Glenview, IllinoisNotes to Fiürcial StatementsDecember 31. 201 INOTE A - SL\4MARY OF SIGNIFICANT ACCOIJNTING POLICIES (Continued)2 Goverment-wide and Fund Fimncial StatementThe govement-wide fmrcial statement (i e , the staterent of Det assets atrd the statemnt of activities) repofi¡fo¡mtion on all of the rcnfidwiary activities of the Village For the most par! the effect of interfund activþ hasbeen ¡eroved f¡om tlrese statemús Gove¡mental activities, which mrmlly are supported by taxes andiltergovelmntal reveDæs, a¡e reported separately from builess-type activities, which rely to a significant extent onfees and charges for servicesThe staterent of Det assets presents tbe Village's mnfrduciary asseß and liabilities with the differerce reported inthræ categories:Invested in ca¡ilal dssels, net ofrelaled d¿ól coroisß of capital assets, ret of accmulated depreciation andreduced by outtandilg b¿lances fo¡ bonds and other debt tbat are attributable to the acquisitio¡, coNtructioD, orinprorement of those assetsReslr¡cled nel øJJ¿/s resìit whetr coÆt¡ainß are placed on net asset we, eithe¡ extemUy inposed by crediton,g¡antors, contibutors, and the like, or inposed by Iaw tkough corotitutioml provisiou or embling legislationUnresl r¡cted nel assers co$ist of net assets that do mt met tlE criteria of the two precediag categoriesThe Village fust applies resticted ¡oouces when an experoe is imured for purposes for which both rcstrict€d andwestricted ret assets a¡e awilableResticted ret asseb repoled in the statement of æt assets by fwtion are also restricted by embliag legislationThe statemeût of activities demontats tle degree to which the direct expemes of a given furction o¡ segment areofßet by program revenæs Direct experoes a¡e tlose tbat are clearly identifnble with a specifrc frmtiou or segmentProgram revenus imlude: l) cha¡ges to cNtom€rs or applicants who pucbase, ue, or dirædy berefit ftom goods,services, or privileges provided by a given furction or segmetrt aDd 2) gnnts and contributioro that a¡e rcst¡icted toreetingtheoperatiomlreeclsoftbeVillageor3)capitalrequiremenbofaparticularfimtionorsegment Taxesaudother item properly not iacluded among prognm revenues are reported ifflead as general revenuesSeparate funcial statemeDts are provided for govermental funds, proprietary fuds, and frduciary fuads, eventhough the lafer are ercluded from tbe govermnt-wide fimrcial staterents Maþr individul govemenial andbusims-R?e fulds are reported as separ¿te colm i¡ the fi¡rd fmncial staterenß Nomjlr fmds detail a¡ereported in the supplementary infolmtiotrVillage of Glenview, IllinoisNotes to Fimrcial StateEentsDecember 31. 201 INOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contiaued)3 Fund AccoutiroThe Village wes fùnds 1o ¡eport on its lmrcial positior and the results of iß operatiom Fud accomtiag is desigædto demrutate legal compliarce and to aid fmrcial mmgement by segregatilg t¡amactioru rclated to ceÍai¡govemental fwtio$ or activities A fud is a separate accoundng entity with a selÊbalarcing set of accomtsFu¡ds are classified into three b¡oad categories: govemntal proprietary, and fiduciary. Each category, in tun' isdivided into separate "fud tnes "Govermental Fun&Govemeutal funds are Ned to acçout fo¡ all or mst of a govmmt's gereral activities, imludiag the collectiouaud disbmemDt of eamrked mouies (special revenue fuuds), the acquisition or corutruction of capital assets(capital proicts funds), aud serviciag of gereral loÂg-tern debt (debt service frmds) The Gene¡al Fu¡d is ued toaccout for all activities of the geneËl goyeroeDt qot accouted for in another fuò The following are the Village'sgovemeúal fu¡d types and funds:Gene¡al Fu¡d is tie gemral operating frurd of the VillÂge It is Eed to accout fo¡ all fimncial resouces exceptthose required to be ¿ccouted fo¡ in aDother fuDdSgecial Revenue Funds are ued to accout fo¡ tlte proceeds of specific revenue souces (other thau expendabletruts or mþr capital proict) that are legaUy resticted to expenditues for specified puposes. The Village hasthe followirg special rerenue funù:Special Tax Allocation Furd - a mþr fmdMoto¡ Fwl Tax FundRefixe and Recycliag FuadJoi¡t Dispatch FundForeign Fire Imuarce FudPolice DepartreDt Special Accout FuDdGlen Redevelopment FundGlen Caretaker FmdA-36 Village of Glenvieq IllinoisNots to Fimrcial StatementsDecepber 31. 201 1NOTE A - SLMMARY OF SIGNIFICANT ACCOL.INTING POLICIES (Continued)3 Fud Accomtim (Continued)Govemental Fu¡ds (Continued)DebtServiceFunisa¡euedfo¡ttresewicilgofgenenllong-temdebt TheVill¿gehasthefollowiugdebtseryicefi¡ds:CorpoÉte Pù¡pose Bond Se¡ies 2004 FundGerenl Obligation Tapble Bond Series 2009E Fmd - a mþr fundCapital Pro bct Funds a¡e ued to accout fo¡ fimrcial ¡esouces to be Ned for the acquisilion or co$trwtion ofruÞrcapitalassets(otherthanthosefimnc€dbyproprietaryfuuds) TheVillagehasthefollowingcapitalproictfu¡ds:Village Pemrent Fuad - a mjrr fundGlen La¡d Sales Fund - a mþr fundCapital ProþÈ FudGlen Capital Proicts Fu¡d20064 Bond P¡oicb FùndP¡op¡ieta¡v FundsP¡oprietary funds a¡e ued to aocout for activities in a similar mrer as those found in the priwle sætof, Themeasuemeut focu is oo the dete¡mi¡ntion of ret imom. Activities of these fimds iælude se¡vices provided to¡esidenß of the Village (such as water and saDitary sewer services) and service provided to other fùnds (srch as selfirouance and vehicle mhtemrce) The following are the Village's proprietary fud types and fucls:Enteprise [ggþ are ued to ¿ccout for opentioß (a) that are fmrced and opented i¡ a mrer similaÍ top¡iyate b$iress enterprises whe¡e tle i¡tent of the governing body is tlÉt the cosb (experoes, imludirgdepreciation) of providiag goods or services to tìe ¡esideuß of the Village on a continuing basis be fimrced orrecovered prinarily tluough uer charges; or (b) where the governing body has decided that periodic deærmimtionof revenues earred, experoes imu¡ed, and/o¡ ret iffom is appropriate for capital mintemrce, public policy,EegemeDt control, accoutabiliy, or ottrer puposesVillage of Glenview, IllinoisNotes to FiMrcial StatementsDecember3l.20llNOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contiaued)3 Fund Accouti¡g (Coutinued)P¡op¡iet¿¡y Funds (Conthued)Enterprise Funds (Continued)The Village has the followiag euterp¡ise funds:GlenYiew Water Fù¡d - a roþr fundNorth Maiæ Wale¡ and Sewer Fund - a mjrr fiurdGlenview Sanitary Sewer Fund - a mþr fundVy'holesale Water FutrdComuter Parkirg Lot FundInG¡ml Service Funds are ued to accout for tlrc frmrcing of goods or sewices provided by ore departænt toot¡€r departrents of the Village on a cost-¡eimbuserent basis. The Vill,age has tbe followirg govemutalactivity iaærml seruice frrnds:Capital Equiprent Replacement FudMuicipal Equipment Repair FundImuarce aud Risk FudFaciLity Replacemut FuDdFiduciarv FundsFiduciary fuads are ued to accomt fo¡ assets held on bebalf of outside parties, ircluding otler goverwnß, or oÂbehalf of otbe¡ fu¡ds withil ttÉ Village When these asse6 are held u¡de¡ the tem of a fo¡ml tut agreeænt, at¡Et fù¡d is ued The followirg are the Village's frduciary fud ¡pes and funds:f¡¡¡! !¡¡¡6þ are Ned to accout for and report peßioD pla$ sitre capital prese¡mtiou is critical The Village hasthe following peroion tmt fuds:Police Peroion FuodFirefi ghters' Peroion FudAsercv Elgb are Ned to accout fof and report asset held on behalf of other parties and chatrges itr the assetsThe Village bæ the followi4 agercy funcls:Special Sewice Area (SSA) Boud FudEscrow Deposit FurdA-37 Village of Glenvieq IllinoisNotes to Fimncial StatemntsDecember 31. 2011NOTE A - StIN4MARY OF SIGNIFICANT ACCOLTNTING POLICIES (Continued)4 Fu¡d BalanceTheGovementalAccouti¡EStandardsBoard(GASB)hroissuedStatemeilNo 54,FundBalanceReprtingandGovernmental Fund Typ DeJnit¡ons (GASB 54), which was adopted by the Village for the year ended December31, 201 I In the fund fmncial staterents, Boveruental fuds now report five comporents of fu¡d balance:nompendable, rest¡icted, cormitted, assigned, aud mssigredz Nonspndable - ircludes amouts that camt be spent becaue tley are eittrer not in spendable form or legally orcontractully required to be @intahed intact The nompendable in form c¡ite¡ia includes item that are notexpected to be convefed 10 cash such as prepaid iæm or inventoriesb Restricted-refeËtoamubthata¡esubicttooußiderestictiorosuchascreditors,granto$,contributo$, lasand regrfatiom of otler govemnts, or imposed by law through embling Iegislaton Special revenw, debtservice, and capital prolcts funcls are by defmition resticted for those specifred puposes,c Commitîed - ¡efe¡s to amouts tlEt can only be wed for specific pu¡poses pu$unt to cofft¡aints imposed byfo¡roI actiou of tlre Village's highest level of decision mkiry authority (the Board of Trutæs) The Board ofTrutæs comits fu¡d balames by passing a ¡esolutiotr Amounls comitted camt be Ned for any puposeunlas the Village remves or changes the specific ue by taking the same O?e of fo¡roI action it employrcd topreviouly comit those fundsè Assigned - refe$ to amuts t¡at are cout¡aired by the Village's intent to be ued for a specific pupose, but arereithe¡ restricted or comitted IDteDt My be expressed by the Boa¡d of T¡utees o¡ tbe individul the Boa¡d ofTrutees delegates the authodty to assigu amouts 1o be ued for specific purposes The Board of T¡uteesdelegated this autholity to the Village Mamgere Unassigned - ¡efe¡s to all spendable amomls rct contaired in the olher fou classiûcatoß described above Infuds othe¡ than tÏe gereral fund, the wssigred classification is Ned only to report a defrcit balarce resrftingfrom overspending for specific puposes fo¡ which amuts had been restricteè comitteè or assigned-Unlos specifically identifred, expenditues act to ¡€duce rest¡icted balauces firs( then comitted balarces, nextassigmd balances, and fimlly they act to redwe wssigred balarces Expenditrues for a specifically iden{rfiedpu¡poso will act to reduce ttre specific classification offud balance that is identjfred-See Noæ M fo¡ additioml detail on the comporenß of the Geæ¡al Fund's fund balarce at December 31, 2011Village of Glenview, IllinoisNots to FimDcial StatemeDtsDecembe¡ 31. 2011NOTE A - SIJMMARY OF SIGNIFICANT ACCOLTNTING POLICIES (Continued)5The goverent-wide fmrcial staterents are reported uing the ecommic resouces æasuement focu and tleacc¡ul basis of accomting, as are tlte proprietary fund stateænts Revenues are ¡eco¡ded wheu eared and experoesa¡e reco¡ded when a liability is imu¡e{ regardless of the timing of relÂted cash flom Property taxes are recogniædas revenùes in ttre year for which they are levied Propefy taxæ a¡e levied in Decembe¡ 201I to fmrce the Village's2012 calendar yezr, GÉnts and siniiar item are recogniæd as revenue as soon as all eligibility requirerenb impos€dby the provider bave bæn metGovermntal fu¡d fmrcial statemnb are repofed uing the curent fimmial ¡esouces meæuereDt foc$ and t¡Êmdified acc¡ul basis of accomting Revenues a¡e recognized as sooD as they are both measuable aud availableReyenus are couide¡ed to be available when they are collectible wit¡in the cu¡ent period or soon enough t¡ereafter1o pay liabilities of the cuent period A sixty clay awilabilily period is ued fo¡ revenue recogDition of property tax¡erenues and a ninety day period is ued fo¡ all ottre¡ goveffintal fund ¡evenues Expeuditures gererally are¡eco¡ded when a liability is imured, as ude¡ accul accouting However, debt sewice expenditures, as well asexpenditues related to comperoated abserces aud claim and ¡dgænts, are reco¡ded wben payænt is dua Gere¡alcapilal asset acquisitioro are reported æ expenditues iû gove¡ment fùldsFnnchise laxes, liceroes, and i¡terest associated with tlE curent fscal period are all comidered to be ssceptible toacçroI and so have been recoguized as ¡evenues of tle cu¡ent fucal period All ottrer reyenæ iteru are comide¡ed tobe measuable and available olly when cash ¡ received by the govercntThe Vi.llage repors the following mlr govemntal fuDds:The General Flzd is the gereral opentilg fund of the Village. It is ued to accout for all fmrcial ¡esourcesexcept tlose required to be accouted fo¡ in amther fundThe Spcial Tax Allocdl¡on Filnd, a special reveuue fund üed to accout for the ircremental p¡operty tax revenuethât is gererated tbrough the gror4h of the assessed wluation at The Gle& (formrþ referred 1o as Gleuview NavalAir Station) and the "Make-Whole" payænts to core þisdictioro within the boundaries of the Tax IrcrerentDistict The core þisdictioro coruist of the Village of Gleuview, School District 34, High School District 225,the Glenview Park Distric! a¡d tbe Glenview Public Library, a çomporeDt uit of tbe Village This fund alsoaccouts for tle seryice a¡d ircentive fees within tÀe Tax Inc¡emeDt Dist¡ictA-38 NOTE A - SIJMMARY OF SIGNIFICANT ACCOLINTING POLICIES (Continued)5 (Continæd)The Village's Djrr goremntal ñurds (continued):theVillage Permanenl Fund, zçapílzlproicts furd, is ued to accmulate 20% ofthe land sales proceeds ofTheGlel The rcsoucs are ued for Village-wide improvemeús as well as short-term liquidity for the Village's taximremnt fmrced (TIF) prcicts at The GlenThe Glen Lqnd Sales Fund, z capital proict fun{ accou8 fo¡ ¡esouces and expenditues related to the sale ofproperties in The GleD Tax Ircrement Fimrci¡g (TIF) DistrictThe General Oblígatíon Tanble Bond Seríes of2009E Frnd, a debt futr{ accouts for moûies collected and paidfo¡ the Se¡ies 2009E taþble bonds, issued to acquire land in the Glenview N¿wl Air Station EcouomicDevelopmeut Proict AreaThe Village reports the following mþr proprietary fu¡ds:The Glenv¡ev llater Fund (þrmerly called the Waleruorks Fund) accowls for the provisioD of ffiter se¡vices tothe proPerty ouers in the ViIIage. All actvities Hessdy to provide such services are accouted fo¡ in ùis fu¡diacluding, but ml limited to, admhìstration, operatiom, mintemrce, lmrci4 and related debt se¡vice, andbilling and collectiorothþ Norlh Maine Water qnd Sewer Fund accomß for the provision of wter and sewe¡ seryices to the propertyowni¡auuimorpoËtedareasouthwestoftheVillage Thisa¡eawsformrþservedbytheNo¡thsububanPublic Utilitie Company. AII activities recessary to provide such seryices a¡e accouted fo¡ in this fudimludiag, but not limited to, admin¡tratiol, opentiom, mintemucg fmrcing and rel¿ted debt seryice, andbilling aud collecûoro.The Glenviev San¡tary Sever Fund (þrmerl y called the Sewerage Fund) accowls for tbe provisiou of saniørysewe¡ seryices to propefy owrs i¡ both imorpomted and mimorporated a¡eas of the Village All activitiesrecssary to provide such se¡vices a¡e accouted fo¡ in this fud ircluding, but uot limited to, administatio4t¡aromissios, mintemnce, fimrcing and related debt sewicg and billing and collectioN Treatreût is perforredby anothr agency.The Village has chosen tle option to apply all applicable GASB pronowerenß and all Finarcial AccomtingStanda¡& Board (FASB) Stateænt and Interpretatios, Accoutirg Priruiples Board (APB) Opiuioro, andAccouting Resea¡ch Bulletiro (ARB) issred on or befo¡e Novembe¡ 30, I 989, u¡less they couflict with or contndictGASB pronowemnts, to the propdetary funcls activity.Village of Glenvieq IllinoisNotes to Fimrci¿l StatemeúsDecember 31. 201 INOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contiaued)5 (Contiared)As a gereral rule, the effect of i¡terfu¡d activity has been elimi¡ated ûom the govemnt-wide ferci¿l stalÊDentsHoweve¡ iuterfund senics provided aud ued a¡e mt elimimted in the process of couolidationAmomts repofed as program reveûus imlude: I ) charges to cutomers for goods, services, or privileges provided, 2)oPeEti¡g granß and cont¡ibutioro, and 3) capital grants and contibuûom, imludilg assessments. IilerEllydedicated ¡esoucs are reported as general ¡evenue ¡athe¡ tlan as program ¡evenue Likewise, gereral revenæsimlude all bxes,Proprietary fuads distingulsh operatiag revenues and expemes ûom mnoperatiag item Operating ¡evenues aldexperoes geæmlly result ûom providing services and producing and delivering goods il corection with a propdetafyfuad's priacipal ongoing operatioro The prircipal operating revenues of the enterprise fimd and of the Village'sinæ¡ml service furd are cbarges to cutoners fo¡ sales and se¡vics Opemtiag experoes for an enterprise fund and aninterml service frud irclude thÊ cost of sales a¡d services, administratire expemes, aud depreciatioD on capital assets.All ¡evenues and experues mt mæti¡g this defnition are reported as mnoperatiag revenues and expemes.The Village reports uearcd ¡eyenus on its furcial statements Urea¡æd reveuues a¡ise when a potential reveauedoes mt met both t¡Ê "reasuable" ¿¡d "available" crileria for recognition ia the curent pe¡iod Urearcd ¡evenuesalso arise when ¡esouces a¡e ¡eceived by the Village before it hâs a legal clain to tleng as wbeu mouies ¿¡e ¡eceivedpfiortotheincueDceofqualifyingexpenditrues. Insubsequentperiods,whenrevenuerecoguitionc¡iteriauemto¡when the Village has a legal claim to ttre tesouces, the liability for wa¡red revenues is ¡emved f¡om the fmucialst¿teDenb and ¡evenue is recognized6 Cash EquiwlenßFor puposes of tle statement of cash flom, the proprietary fiDd tnes coroide¡ all highly liquid investment withmtuities of t!¡ee mntls or less, at the date of puchasq to be cash equiwlents7 InvestmenßInvestrenb a¡e canied at fai¡ m¡ket valueVillage of Glenview, IllinoisNotes to Fimrcial StatemntsDecember 3l - 2011A-39 Village of Glenvieq IllinoisNots to Fimrcial SfatementsDecembe¡ 31. 201 INOTE A- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Contimed)8 ReceivablesThe recognition of receivables associated with mrexcbange traroactiom is as follow:* De¡ived tax rcceivables (such as sales, income, a¡d mtor fuel laxes) ate recogniæd when the underlyingexchange bas occured* Imposed uonexcbange ¡eceiwbles (such as property taxes and fms) are recoguiæd when an enforceable legalclaim has arisen+ Gove¡ment-mudated or volutary mmxchange taroaction ¡eceiubles (such as mndates or granß) arerecoguized when all eligibility requirerenß haw been rct9. InveptoryIDveDtory is accomted for at cos! üiDg tlE ftst-i¡, fNt-out method Inventory is accomted fo¡ unde¡ thecomuptiou method, whereby acquisitiom are ¡eco¡ded in inventory accouß iaitially and charged to expenditueswhen uedl0 Unbilled ServicesUnbilled ¡evenue i¡ the proprietary funds is recogniæd as earcd when tlp services are providedt 1. Capital AssetsCaPital asseb, which imlude property, buildings, vehicles, equipmeot, and ifi&astructu¡e ¿ssets (e.g roads, bridges,and sini.tar item), are reported in the applicable govemntal o¡ bui¡ess-R?e activitiæ colm in the goveruent-wide fmrcial statemenÈ and in the proprietary fùnds statemenß. Capital asseß are defred as those having anestimted ueful l-ife greate¡ than ore year with an i¡itial, i¡dividul cost of m¡e tlEû S25,000. Such assets a¡etecorded at h¡torical cos! or estimted histo¡ical cost if puchased o¡ co$truted Domted capital assets arerecorded at estimted fair mrket value at the date of domtionThe costs of m¡ml mintemrce and repairs t}at do uot add to the wlu€ of the asset or mterially exlend asset liwsarc mt capitalized- Improverenß are capitalized aud depreciated over the remiai4 xefrrl lirc of the ¡elated capitalassets, as applicableMaj:r outlap for capital assets and inprovemenß are capitalized as proicts are coßtruted Interest imured duingthe co$trution phase of capital ðseß of bNiffis-tne activities is ircluded as part of the capitaliæd cost of t¡eæsets coNtucte¿Village of Glenview, IllinoisNotes to Fiürcial StatemeDtsDecember 31. 201 INOTE A - SLMMARY OF SIGMFICANT ACCOTTNTING POLICIES (Contiaued)ll Capital Assets (Continred)Capital assets are depreciated uing täe straight-lire rethod over the following ueful liws:Buildings and improveæntsInfrastrutue+'Water s)4temSanitary sewer systemMachirery and equipmnt and vehicles25 - 80 years25 - 80 years50 yrars50 '€ars5 - 10 yearsr Infr¿structue ircludes ¡oads, çubs, gutteß, storn sewe$, ¡ecreatioml paths, st€et lighls, freld lights, bridges,and taffrc control sigMls12 Urearcd RevenreThe Village defen revenue ræoguition in corection with ¡esouces tbat bave been receiwd, but uot )€t earredGovemenbl fu¡ds report uearcd revenue in corection wittr ¡eceiwbles for revenws that are mt coruidered to beamilable to liquiclate liabi.lities of tbe cwent period13 Accrued Vacation and Sick Leave (Compemated AbsemeslIn tlrc event of termiutio4 an employee is paid for accmulated wcation dap Employees a¡e mt ¡eimbused fo¡uued sick leave aud all vacation tiæ mNt be Eed i¡ the cueut year or shortly ttre¡eafter Accrued vacation isreported in the goverrental fucls fo¡ the amout of yacatiotr for employees that retired o¡ were t€miEted bcforefscal year-end and that was not paid as of fxcal )q¡-end and t¡e amout of wcation fo¡ emplolres that retired orwerc temiEtcd afte¡ )ea¡-end or that are expected 1o ¡eti¡e o¡ be temimted though the end of flrc subsequent fscalyea[,l4 Lom-Tem OblieatioroIu ttre goverueut-wide fmncial statemeDts and proprietary fund tpa in the fu¡d fimrcial stateætrß, loDg-t€rmdebt and other long-tem obligatiom, imlurli.g çomperuated absercs, a¡e reported as liabilities i¡ the applicablegovemeutal activities or buiness-type activities statemeDt of ret asseß Bond prcmiw and discouts, æ well asissuDce cosß, a¡e defe¡¡ed and amortized ove¡ the life of the bonds ou a staight-Iiæ basis Bo¡d issurce costs arereported æ deferred charges and amortiæd ove¡ the tem of ûF rel¿ted debtA-40 Village of Glenvieq IllinoisNotes to Fimncial StatementsDecembe¡31.2011NOTE A - SLIMMARY OF SIGNIFICANT ACCOTINTING POLICIES (Continæd)l4 Lone-TemObiisatiom (Continued)In the fimd fmrci¿l stateents, goveffintal fu¡ds recoguize bond premim a¡d discou6, as well as boud issurcecosts, dui¡g tlÉ curent period. The face amout of clebt issued is reported as other fimrcing souces Premium¡eceived on debt issunces are reported as other fimming souces, while discount on debt issürces are reported asother fimrcing 66 Issürce cosß, whether or not withheld ftom the actul debt proceeds received, are reported asexpendituesDebt service funds a¡e specifically estabüshed to accout fo¡ and se¡vice the long-term obligatioro for thegovermeutal funds' debt Enterprise funcls individually accomt fo¡ and se¡vice the appLcable debt that berefrts thosefrnds. Long-term debt is recognized as a liability in a goremntal fund when dæ o¡ wheu ¡esouces bave beenaccuulated for payment early il the followiag yearI 5 Capital ContributiomCapital contibutioro, if any, reported ia the govermntal and proprietary funds represeDt capital assets domted fromoußide parties, prircipally developersI 6 Interfund T¡aroactioroThe Village has the following types of t¡aroactioro between fruds:Itans - zñúls provided with a requirement for repalment Interfund loaro are repofed as due f¡om otÌrc¡ fuùin lende¡ fu¡ds and due to other fu¡ds in bo¡¡owe¡ fi¡nds for short-term borrowings Adwrces to othe¡ fuDds arerepotted in lende¡ funds aDd advarces from othe¡ fu¡ds in borrowe¡ funds for long-term borrowings Amomls arerepoÍed ð inte¡ml balances in the govement-wide stateEent of ret assetsSen¡ces Fov¡ded and used - sales and pwcbases of goods and seruices between fùnds for a price approximtingtheir exterml exchange value Interfrud services provided and ued are repofted as revetrH in selle¡ fi¡rds a¡dexpenditues or expeNes in purchaser fuds Unpaid amouts a¡e teported as due to/f¡om otle¡ fuds (intermlbalame) in the fud balarce shees or fùnd staterenb of ret asseßReimbursemenls - repa)menß f¡om the funds resporoible for particular experditures or experues to the funds thatinitially paid for then Reimbuserents are reported as expenditues in the reimbushg fund a¡d as a ¡eduction ofexpenditues in the ¡eimbused fu¡dTransfrs - flom of assets (such as cash or goods) without equiwlent flow of assets in retm and without arequi¡ement for repayrcnL In govemntal funds, Earofen are reported as ottrer fimrcing ues in the fu¡dsmking trarofers and as other lmncing souces in the fu¡ds receiving tarofers ln proprieøry funds, t¡amfe¡s a¡erepofed as a separate catego¡y after nonopentiag revenues aud experoesVillage of Glenview, IllinoisNotes to Fimrcial StatereltsDec€mber 3l . 201 INOTE A - SUMMARY OF SIGNIFICANT ACCOIJNTING POLICIES (Coutiaued)17 Use of EstimtqIn preparing fMncial sbtemeDts, rougerent is required to mke estimats and assuptiore that affect the reportedamuts of asseß aDd liabilites, the disclosue of contingent assets and liabilities at the date of the fmrci¿lstatemnß, and the reported amuß of ¡evenuff, expenditues, aDd expemes duiry the reportbg period Actul¡esulß cor¡ld differ ftom those estir@tesl8 Claim and JudqmnÈLiabilties resulting from cl¿im and jdgments, ircludiag claim iDcured but rct reported, bave beeu reflected in thefErcial staæmDtsNOTE B - DEPOSITS AND INVESTMEMSThe Village üintairo a cash and invæt¡rent pool that is available fo¡ Ne by most fuÀs Eacb fund trye s portion of thispool is displayed on the stateænt of ret æseb as "cash and cash equivalenLs" ald "i¡vestrenß " In additio4 inwstuenfsareseparatelyheldbyserenloftheVillage'sfu¡ds, TheVillage'sinvestrentpolìcyandstatestatutesallowtheVilâgetoinvest in the following:- Inte¡est-bearing accouts of ba¡Is and savings aud loan ¿ssociatioro iroued up to 5250,000 by the FederalDeposit Imuance Corporation- Obligatiom of the US Treasuy aud US agercies.- INued accoub of an Illi¡ois c¡edit uiou charte¡ed ude¡ United States o¡ Illircis iaw.- Morey mrket mutul fuds with portfolios of secuities isswd or gu¡anteed by the United States or agreementsto repucbase tlese sare types ofobligatiom- Repuchase agreeretrb which met ist¡uent taroaction requiremeDts of Illimis l¿w.- S hort-tem obligatiom of U S corporatioro nted in the th¡ee highest classifrcatios by at least two standard ratingagercres.- The Illinois Fuds- Illinois Met¡opolitaD Invesbxent FudThe Village's i¡vestment policy limib the Village from investing in any fimrcial istitution in which the Village's fuds oudeposit are in excess of 75% of the i$titutious capital stock aDd surpluA-41 Village of Glenvieq IllinoisNotes to Fimrcial SlatemeúsDecembe¡ 31. 201 INOTE B - DEPOSITS AND INVESTMENTS (Contiaued)The deposits and investmenß of the Police Pemiou Furd aud the Fireûghters' Fund are held sepantely f¡om each otle¡and from ttrose of other Village fu¡ds Iu addition to the afo¡erentiored investnents, these peroion fiu¡ds a¡e alsopermitied to inyesl in the followi¡g istìÆnts:- Bonds issued by any aouty, city, tomhip, village, imoryo¡ated tow4 municipal corporation, or school district iaIllinois- Dùect obligatioro ofthe Søte oflsmel- Separate accomts of Illinois-licemed isuance companies- Comon and prefe[ed stockAs of December 31, 201 l, cash and i¡vestuients coEisted of the followingThe Village limiß its exposue to c¡edit risk tlre ¡isk that tbe issuer of a debt secuity will mt pay its par value uponmtuity, by i¡v6tiDg ir exteml i¡vesùrent pools The llliaoìs Funds Money Ma¡ket Fud and P¡ime Fuud a¡e ratedAAAmbyStandardandPoo¡'s Thellli¡oisMetropolitanlnvesùrentFu¡d(IMET)l-3Yea¡Seriesa¡dConveuienceFurÀ (542,223,443, $1,335,207, a¡d $1,718,929 for the Village, Library, ald Agemy Funds, respectively) aredepository vehicls that are I 00 percent collateralized with obligatiom of the Uqited States Treasuy and iß agemiesAll collate¡al secuities are held i¡ the mre of tbe Illi¡ois Metopolitan InvesfEent Fund at the Fede¡al Reserye Ba¡kofNew Yo¡kCwtodial C¡edit RiskIn ttre case of deposits, this is the rÈk that, in the event of a bank failuq tbe Village's deposib my Dot be ¡eturedFo¡ an investrrent, cutodial c¡edit risk is the risk that, in the event of the failue of the couterparty, tbe Village willnot be able to ¡ecover the wlæ ofits itryestænts or couatelal secuities tbat are in the poss$siotr ofan oußide party.To limit ili exposue, the Village's i¡vestneDt policy requires all inrestmuß to be Iimited to the safest O?es ofsecwities i¡vested with pr+qulifred irotitutiom, broke¡/dealen, intemediades, and adviso¡s, and soudly diversifred"The Illinois Funds and Illi¡ois Metopolilân Investmff Fùnd is not subict to cstodial credit ¡isk Tbe ba¡k balanceof the Village's deposit with firorcial irottutioro was not exposed to cutodial credit risk as it is fully imued o¡collate¡alized as of Decembe¡ 3 1 , 201 1Comentation of Credit RiskIt is the policy of the Village to diversify it invsturent portfolio Inyestrcnts shall be diwnified to elimiüte thÊ riskof loss resultilg ia an overconcent¡ation in a secuiry mtuity, issuer, or class of secuities2 Peroion Trut Fu¡dsAs of De cembe¡ 31 , 201I , the Police Peroion Fu¡d had the following investrents aud mtuities:Invesiment Mâtuities lln YearsìIDvestmDt TweFai¡ Value Less t¡aDlI -56-10Greater t¡an I 0Village of Glenview, IllinoisNots to Fimrcial StatemeDtsDecember 31. 2011NOTE B - DEPOSITS AND INVESTMENTS (Contiaued)Compoæût PemionVillage Unit T¡ut FundsAgercyFundsTotal$ 25,303,908 $ 3,143,503 $ 3,s74,976 S 642,497 S 32,664,884s4,251,89'7 r,33s,207 99,7s6,s93 3,78s,575 159,129,27245,625,7781,134,2064s,277,579Cash a¡d cashequivalentInvestrenßCasbandinvestuents $ 79,555,805$ 4,478,710 $ 103,331,5695 4,428,072 $t91,794,156For dÈclosue purposes, tle graDd total above is segregated i¡to thlee components: 1) deposits with fmrcialistitutioro, which include amomß held in demnd accomß, savings accout, and noregotiable certificates ofdeposiq 2) invesltrnts in The Illi¡ois Fuds and Illiaois Metopolitan Inyestnent Fu4 and 3) other itrrestrents,which coruist of all i¡vestments other than cefificates of deposi! as follows:TotalDeposiß with fercial i$titutioEThe Ilìi¡ois FundsIllinois MetropoliÞD Inystnent FudOther i¡restrents99,756,593$ r91,794,1s6Interest Rate RiskIu acco¡darce with its i¡vestnent policy, the Village lieits iß exposue to bterest Éte risk by st¡uctuing the porfolioto provide liquidity for short-and long-term cash flow reeds while providiag a ¡easomble Éte of retu based on tlpcùrent mrketUS Treasuyobligatioro $ 16,804,914 $ 1,499,970 $ 8,716,808 $US agency obligatioro 12,249,665 - 2,O66,L45Mutul fuds 21,2'l'1,390 21,277,3905,272,200 S2,541,358I,31 5,9367,642,t62s 50.331.969 $ 22.777.360 $ 10.782.953 $ 7.813.558 S 8.958.098A-42 Village of Glenview, IllinoisNotes to Fimrcial StatementsDecembe¡ 31. 2011NOTE B - DEPOSITS AND INVESTMENTS (Contiaued)2, Pemion Trut Fmds (Contiaued)As of Decembe¡ 31, 2011, the Fùefighte¡s' Pero.ion Fund had the followirg investænts aud mtuitið:Investrent Matuities (In Yea¡s)Investrent T.rÞeFai¡ Value Less thanl6-10 Greatert¡an102,163,6395,403,363 $8,111,209Mutul firnds23,819,624 23.8t9.624s 49,424,624 $ 25,983,263 S 13,514,s72 $ 9,926,789 $_____________:_Inte¡est R¿te RiskIu accordance with thei¡ investnent policies, tlrc pemion funcls limit their exposue to interest rate ùk by stuctuingthe pordolios to provide liquidity for short-and long-term cash flow ueeds while providiag a reasomble ÉÎe of retuDbased ou tle cureut ru¡ketC¡edit RiskThe fuds limit their exposue to credit rish the dsk that the issue¡ of a debt secuity will mt pay iß pu value uponmtuity, by iavesting i¡ exte¡ml i¡vatnpnt pools The Illinois Fuds Morey Market Fmd and Prime Fud are ÉtedAAAm by Stancla¡d and PoolsCutodial Credit RiskIn the case of deposiß, this is the risk tlnf in the event of a bank failue, the peroiou fruds' deposit my rct be¡etuned Fo¡ an investtrnt, cEtodial c¡edit dsk is the ¡isk tha( i¡ the event of the failue of the couterparty, thefuds will not be able to recover the wlue of their investnents or collateral secuities that are in the possession of anoußide party, To Iimit its exposue, tlre Police Peroion Fund's hvestDeil policy rcquires all secuity trauactiom thatare exposed to cutodial c¡edit ilsk to be held by a third-party agent The Funds collatenl is held i¡ the mre ofthethird party agent The Firefrghters' Peuion Fund invetrent policy requira all i¡vestænts to be limited to the safestt]?es of secuities invested with prequlified istitutioru, b¡oke¡/deale¡s, i¡terredia¡ies, and advison, and soundlydivenihed The IllimÈ Fuuds is mt subict to cutodial credit dskVillage of Glenvieq IllinoisNots to FiErcial StatemeDtsDecembe¡31.2011NOTE B - DEPOSITS AND INVESTMENTS (Contiaæd)2 Peroion T¡ut Funds (Continued)C oucentation of C¡edit Ris kCorceDtation of credit ¡isk is the risk lbat the fu¡ds have a high percentage of their deposit or itrvestments itr oreistitution or type of investrent The funds' invesünent policio require dive¡sificatiou of inveslænt to avoidweasomble risk At Decembe¡ 31, 201l, the Police Pemion Fund aud the Fireûghten' Peroion Fu¡d had rcuiroued o¡ ucol¿teralized deposisNOTE C - RECEIVABLESI PropertY Tax ReceiwblesThe Village's property taxes are levied i¡ December of each caleudar year on all taÉble real p¡operty located i¡ theVillage Property bxs attach as atr eDforceable lieD oD JaDury I of ttre sarc lely )€ar P¡operty tax ¡eveDues arerecoguized when ttrey becom æasuable and awilable Tax bills are prepared by the Couty a¡d issued on o¡ aboutFebrury I a¡d S epteEber I of the following calendar year, and are pa¡able iD two ißtallDenb ou o¡ about Ma¡ch Iand October I in tlnt following calendar year Th€ Couty collecb such taxes and r€mits them periodically. Aaallowarce fo¡ wollectible tares hæ been established based on historical e xperienceU S Treasuy obligatioro $US agency obligatioroMuicipal obligatioro8,63t,957t5,74r,468I,23t,575$3,228,s94 S5,466,6201,23t,s7sA-43 Village of Glenvie6 IllinoisNotes to Fimrcial StatementsDecembe¡ 31. 201 INOTE C - RECEIVABLES (Couthued)2. Taxes ReceiøbleThe following ¡æeiwbles a¡e i¡cluded in Receiwbles - Taxes on the Govemntal Fuxls Balarce Sheet a¡dGovercntal Staterent of Net Assets:Village of Glenview, IllinoisNotes to Fiercial StatementsDecember 31 - 201 INOTED-CAPITALASSETSI Gow¡mentalActivitiesA s rrmry of changes i¡ capital assets for govemntal activities of the Village is as follow:BeginningBalarceAdditioro DeletiomCapital asseß, mt beirg dep¡eciatedCorotructiou il progressLandLand right of my$s 722,989 g$ t0,574,5305,048,778I,001,941t,365,643I 57,851147,76342,tl2lo,z32'722,989 $6,935,698PropertyS alesUtilityIrcomUseFnrchiseHotelAEuemDtNotesCourt fwsTippiry fees9ll sucharge feesGËntsInterestLiceroesOtherTobl otlp¡ receiwblesIllinoÈ Departrent of Tnropofation - motor fiEl taxes5s,143,868 t,92362,802,555 1,923 722,989 62,081,489Total capital assets,mt beiDg depreciatedCapital asseß being depreciaædBuildings aDd improyemnßMachiæry and equipmntInf¡a structueTotal capital assets, being depreciatedLess acÇmulated depreciation forBuildings and improvemnbMachitrry and equipmntI¡frastDctureTotal accmulated deprecia tionTobl capital asseb,beiag depreciatd netGovemental activitiescapital assets, ret75,073,0541 I.l 05.379646,315402,32L30,581I,1 l 0,796Eod",gBalarce6,935,69875,688,788I 0,396,904s5,t4s,791Total tares ¡eceiwble$ I 8,348,8503, Othe¡ ReceiwblesThe followilg receiwbles a¡e ircluded in Ræeiwblc - Otlre¡ on the Govermentrâl Funds Balarce Sheet andGovemental StalÊrent of Net Asseß:129,695,74t 2,742,t86215,874,174 3,790,82295,466 132,342,461t,236,843 218,428,153$ I,8E8,66810,99544,791t27,t9331,4481 8,08546,355115,842s 2,283,3771 5,1 1 1,3997,409,t3452,487,78675,008,3191,653,942729,t542,786,7555,1 69,85130,58t 16,734,760r.l 1 0,796 7.027.49295,466 55,t79,075t,236,843 't8,94t,3274 Due F¡om Othe¡ GovementThe following amout dw from another goverrent js imluded in Due F¡om Otle¡ Gore¡rents on tlp Gore¡mntalFu¡ds Balarce Shæt a¡d the Gove¡æntal Statement of Net Assets:140,865,855 (1,379,029)139,486,826s 203,668,410 s (1,377,106) s 722,989 $ 201,s68,315s 94,002A-44 Village of Glenvieq IllinoisNotes to FimDial StatementsDecembe¡ 31. 201 1NOTE D - CAPITAL ASSETS (Couthred)2 Buiæss-tweActivitiesA s rrmry of changc il capital assets for buiress-type activitio of the Village is as follom:Village of Glenview, IllinoisNotes 1o Fimrcial StatementsDecember 31. 201 INOTE D - CAPITAL ASSETS (Continued)3 Dep¡eciationExoeroeDepreciation experue ws charged to fumtiom/program of the primry goremDt's govelmntal activities asfollom:Capital asseb, not being depreciatedLandCostuction in p¡ogressLess ¿ccuulated depreciation forBuildings and improverentWater s)ßteDSanitary sewer systemEquipment and vehiclesTotal accuulated depreciationTotal capilal asseß being depreciate4 rels 802,851 $ -1)^ lqgBegimingBalarceAdditioroL,540,549 t,072,87654,885,984 1,864,84119,695,301 2,7L6,5104,190,516 168,807- $ 802,851720,498720,498 802,851DeletioNEod-gBal¿rce$Gere¡al gov€mentPublic safetyP ublic wo¡lsCultue and rec¡eatonInte¡ml seryiceTotal govemilal activity depræiation expemeDepreciation experoe for the bui¡ss-tpe activites a¡e æ follow:Glenview 'ly'ate¡ FudNorth Maire Wate¡ a¡d Sewer FundGlenview S anitary S ew¡ Fu¡dWholesale Wate¡ FudComuter Parkirg Fud$ 2,868,9391,126,290697,751463,t60I 3,7t Is 5.169.851Total capital assets, not being depreciaæd 1,523,349Capital assets, being depreciatedBuildings and improvemnÈìVater s)ßtemSanitary sewer s1ætemEquipment and vehicles2,613,42s56,43t,68422,256,69034,726 4,324,597509,048 85,626,39631 9,1 4lI 55,t 81$Total capital assets, beiag depreciated 80,31 2,350 5,823,094I,tzt,798I 65,505400,66862,81667,585$ 1,818.372607,312I 5,81 9,5044,34t,7963,508,31 324,276,92556,035,4257r,0451,1 08,1 94429,509209,624212,99567,303678,35716,7t4,7034,704,0023,7t7,937I,8I8,372 280,298 25,814,999Buimss-type activitiescapital assets, ret4,004,722 228,750 59,811,397s, s7,ss8,774 S 4,004,722 $ 949,248 $, 60,614,248A-45 NOTE D - CAPITAL ASSETS (Contiaued)4. Compomnt Unit - Glenview Lib¡a¡],A swry of changes in capital assets for the Library is as follom:BegimingCapital asseb, not being depræiatedLandE¡dngBalarceAdditioro DeletioN Balarceg s,426,98't9 $ - $ 5,426,981Village of Glenvieq IllinoisNotes to Fimrcial StatereqtsDecember 31. 201 INOTEE-RISKMANAGEMENTThe Village È exposed to vario$ risks of loss related to tort: theft o4 da@ge to, aDd dst¡uction ofassets; enors ardomissioro; mtual disasters; and ill¡esses of a¡d iniuies to the Village's employoes. The Village is self-iroued (andparticip¿tes ia two public employee risk pools for health claim) for gereral liability, auto, prop€rty, a¡d wo¡kes'compemation risks Comrcial isuame is canied fo¡ amut in excqs of ttre self-iroued amouts Fo¡ all iruedp¡ogram, settlemDt aDouts bave not exceeded iswrce coverage for tbe cur€Dt or th¡æ priof )€aßI S elf-Iro uameThe Village stablished the Irouarce a¡d Risk Fund (an ilteml seruice fund) to report self-iuuarce acúvities TbeVillage's policy is to fi&rce cuendy ir this fud all claim pai4 cstiÐated futue payætrts with respect to cl¿i$mdq and estimted claim i¡cued but mt rcported The Irouarce and Risk Fu¡d proyides covetage up to amximu of $200,000 for each geænl liability clai4 $550,000 fo¡ each worken' compereatiou cl¿in, and $100,000fo¡ each property damge claim Such pa)ments are displayed on the fmrcial statemnß as claim expeme.Liabilities a¡e reported when it is p¡obable tbat a loss bas occued aud the amout of the loss can be reasomblyestimted Liabilities imlude aD amout for claim lbÂl haw been ircued but not rcpoled (IBNR) ThE total claimliability as of Decenber 31, 201 1 was $3,1 88,986.A ¡ecomi.liation of claim liability for the cuent )€ar and that of the precedi¡g year is reported belowUnpaid claim liability - Janury I , 201 0s 2,01r,679Village of Glenview, IllinoisNotes to Fiercial StatemnbDecember3l.20ll5,426,987s,426,987Totalcapitalassets,beilgdepreciated 30,936,606 3,125,386Less accmulated depreciation forBuildirgs and improverentsEquipmnt and rehiclesLibrary mterialsCapital assets, being depreciatedBuildings and improvemnßEquipment and vehiclesLibrary mterialsTotal acc @ìilated depreciationTotal capital asset being depreciate4 relTobl capilal assets, ret24,44'1,847 2,4s3,699105,361 8,0416,383,398 663,64626,901,546rr3,402412,254 6,634,790412,254 33,649,738488,956 538,031 - 1,026,98721,072 22,08r - 43,1533,286,189 1,006,72t 58,893 4,234,0t73,796,2t7 1,566,833 58,893 5,304,15727,140,389 1,558,553 28,345,581s 32,567,376 $ 1,558,553 $ 353,361 s 33,772,568Claim imued - calendar year 2010Claius paid - calendar year 201 0Unpaid claim liabiLity - December 3 I , 201 0Claim incu¡ed - calendar par 2011Claim paid - calendat y€ar 201 IUnpaid claim liabi.lity- December 3I, 20ll2,106,933(923,543)3,195,069800,326(806,409)$ 3,1 88,986A-46 Village of Glenview, IllinoisNots to Fimncial StatemenßDecemb€r 31. 201 INOTE E - RISK MANAGEMENT (Continæd)2 Inte¡eovermntal Peßomel Benefit Cooperative ûPBC)The Village participates in the Intergovemental Peßoml Berefrt Cooperative oPBC) IPBC is a public entity riskpool with a membenhip of thùteen local govermtrß ir Illiruis to a¡lminiqte¡ sore o¡ all of the persomel bene6tprogram (such as mdica! deutal aud life imuance coverage) offered by ils members to thei¡ oftcen and employeesand to the office¡s and employees of certain other govemental, quasi-govermental, and mûprofit public sewiceentities Risk of loss is reøiæd by the Village, except that IPBC puchases excess iruarce corerageMamgemut coroists of a boa¡d of directors, comprised of ore representative f¡om each rember In additio4 thereare three officen, a Berefit Admidstrator and a T¡easuer The Village dos not erercise any control over theactivities ofthe IPBC beyoud its representation on úe Board ofDirecto$.3 Hieh-Level Excess Liabilitv Pool (HELPIThe ViIIage participates in the HigÞLevel Excess Liability Pool (HELP) HELP is a pool with a membenhip ofthirteeu mmicipalities in Illi¡ois to provide excess liability coverage ($1 0,000,000 ofcoremge after a $2,000,000 self-ißuance retention) The Village's pa)ffiDß to HELP a¡e displayed on the fimncial sãtements as experoes in theINuarce Fu¡¿The High-Level Excess Liability Pool ms organÞed on April 1, I 987 The Te¡m II agreement expired on April 30,2008, and was extended for amthe¡ ten-year tem (Tem III), with an expiration date of April 30, 201 8, The puposeof HELP is to act as a þint self-iromnce pool for the purpose of seekiag the prevention or lesseuing of liabilityclaim fo¡ injuies to pereoru or property o¡ claim fo¡ e¡¡o¡s and omissioro aud emplo¡rrs' liability mde agaist thememben and other pa¡ties ircluded within the scope of iß corengeEach muicipality has ore member on the HELP Boa¡d of Di¡ecto¡s and all budgetiug and fimrce decisioro a¡eapproved by the Board Each dùecto¡ has an eqml vote The office¡s of HELP a¡e appoiated by the Boa¡d ofDirecto$ The Boa¡d of Directo¡s determi¡es tbe gereral policy of HELP, rokes all appropriatioro, approvescontacts, adopts ¡esolutioro providiry for tlrc issurce of any debt by HELP, adopts bylam, rules and regulatioro,and exercises such powers and perform such duties as my be prescribed in the Agercy Agrærent or the bylam-The Village does mt erercise any contol ove¡ ttre activities of HELP beyond its represenlatioÀ on tle Boa¡d ofDirectofs,Village of Glenview, IllinoisNotes 1o Fimrcial StatementsDecember 3l - 201 INOTEF-LONG.TERMDEBTI Chanees in Lom-Tem LiabilitiesThe following is a swry of changs in the Village's long-term liabilities in 201 1:Begiming Additioro/Issue Balarce Issmrces Reti¡emnßGovermental activitiesGemral obligation bondsVillageUmmortiædBond discoutBond premimCoEpe$ated ¿bsercsOther postemplolrneûtbemfißTotal govemntalactivitiesBalarce$ 109,125,000 $ 11,035,000 $ 21,045,000 $ 99,115,000 $ 10,320,000Eod"tC(200,551 )435,9531,483,0223,860,0001,39s,273(3,688)r5,99449,786Due Vy'ithinOre Yea¡Buiress-tvpe activitiesGeæral obligatiou bonds 4,750,000Notes palable 1,534,796UmmortiædBond discout (5,483)Bond premiu 18,445Compe$ated abserces 63,512Umnortiæd loss onretundiag (252,898)Total bEiness-t)?eactivitie 6,108,372Total Village long-ternliabilities S 118,109,204Comporent Unit - Glenview Lib¡arvGeneralobligatioubouds $ 25,840,000 $Comperoated absercesTotal Comporent Unitlong-term liabilitio(228,005) (27,4s4)176,495 34'7,39099,718 199,435890,000t39,s2313,7260,7e5)2,45r27,4527269,9s7(33,269) (219,629)1,024,362 5,097,736 I,066,376606,8481,582,739686,245 57I,999 341,366 9L6,878112,000,832 1r,655,207 2r,905,737 101,750,302 10,616,604296,6049t 0,000146,419$ 11,668,933 I 22,930,099 $ 106,848,038 $ 11,682,980$ 1,020,000 $ 24,820,000 $ 1,045,000272,63't 40,580 60,870 252,347 50,469s 26,112,637 $ 40,580 $ 1,080,870 S _ 25,012;47_s __J_,09:,469(Continued)A-47 Village of Glenview, IllinoisNotes to Fimrcial StatementsDecembe¡31.2011NOTE F - LONG-TERM DEBT (Contbued)l. Cha¡ees inLom-TemLiabilities (Coatinued)The following changes ia the Village's gerenl obligation bonded debt occued in 2011BeginningNOTE F - LONG-TERM DEBT (Continred)I Chanees in Lom-Tem Liabilities (Continæd)BegimingIssue BalarceGove¡rental activities (continued)Begi¡¡i¡gBalarceVillage of Glenvieq IllinoisNotes to Fimmial SfateDentsDecembe¡31- 2011IssúmesRetiremûtsIssurcs RetireænßE¡dug Dæ WithinBalameOre Yea¡EndingBalarce Issurces RetirerentsEodrCBalarceDæWithinOre Yea¡Iss ueGove¡mental activitiesS41,800,000 General ObligationBondSeries 2001 S 11,000,000 $$25,000,000 Geæral ObligatiouBond Series 2004A 20,100,000$22,31 5,000 Geueral ObligatiouBond Series 20048 20,250,000$l 0,000,000 Gerenl ObligationRefundiag BoudSeri6 2005 10,000,000$1 0,000,000 Gere¡aI ObligatiouBond Se¡ies 20064I 0,000,000$l 1,290,000 Gereral ObligationBoDd Series 2009D 9,650,000$28,1 25,000 Gereral ObligatiouBoud Series 2009E 28,1 25,000$ 11,000,000 $$1,800,000 18,300,000 2,125,000I,t00,000 19,150,000 1,150,00025,000 9,975,000 700,000$l 1,035,000 Gemnl ObligationRefunding BondSeries20ll $ - $ 1r,035,000$ 5,575,000 $ 5,460,000$ 5,460,000Tobl goveImutalgeDeral obligatioD boDdeddebt $ 109,125,000$ 1I,035,000$ 21,045,000$ 99,11s,000$ 10,320,000+ The $26,300,000 of Gere¡al Obligation Bo¡d Tapble Series 20094 shom i¡ the Comporeut Uuit - GlenviewLibrary and the 5400,000 of Geænl Obligation Bond Tanble Series 20094 in the Special Service Area Fùtrd we¡eissued ia the Village's mæ with the intÊnt that a portion of the property tax lely for the Library Fud will roke all ofthe required debt service payrenE,Due WithinOre Yea¡$1,995,000 General ObligationRefuudiag Bond Series20038 445,000$5,000,000 General ObligationBond Series 20074Debt retired b¡rNo¡th Maine Waæ¡and Sewe¡ FundGlenview Water Fù¡dBalarce220,000 225,000 225,000I 0,000,000r,545,0008,1 05,000 885,00028,L25,O00(Continued)1,5¿14,400I,965,6003,51 0,000235,400299,600535,0001,309,000 242,0001,666,000 308,0002,975,000 550.000(Contiræd)A-48 NOTE F - LONG-TERM DEBT (Continued)l. Chanees inLone-Te¡mLiabilities (Contiaued)Begi"¡ingIssre BalarceBuiress-twe activitie (continæd)ToÞl geueralobligation bonds 4,750,000$2,850,000 Corporate PuposeNote Series 1997 L,534,796Village of Glenvieq IllinoisNot6 to Fimmial StatemeDtsDecember3l.20lllssuarces Retirerenß$l,200,000 Gere¡alObligation Bond Seric20078 $ 795,000$ - $ 135,000 $ 660,000$ 135,000Village of Glenvieq IllinoisNot6 to Fiürcial StatementsDeceEb€r 31. 201 INOTE F - LONG-TERM DEBT (Continæd)2, Genenl Lou-Tem Debt (Continued)$25,000,000 Gereral Obligation Bond Seriç 20044Dated Augut 1, 2004.Due in amual imtallmnß of $125,000 to $8,250,000 pl6 inte¡est at 2 0-4 0% tlrough Decembe¡ 1, 2014 DebtÈ retired by govermental activity in tln Special Tax Allocatiou Fud$22,31 5,000 Gerenl Obligaton Bond Se¡ies 20048Dated AuguÎ1, 2004Due in amual istall¡oeDts of $1,015,000 to $1,900,000 plu interest at 3 5-470yo tbrough December l, 2024Debt is retired by proceeds from a property tax lery.$l 0,000,000 Gereral Obligaûon Refunding Bond Series 2005Dated Nowmbe¡ I, 2005Due in ¿mual inøllmeDß of $25,000 to $1,825,000 plu interest at 3 5-3 75% tbrough Decembe¡ Iis retired by govermeDtal activity in tlrc Special Tax Allocation Fud-2018 DebtEûdi¡gBalarceDue Withi¡Ore Yea¡890,000 3,860,000 910,000t39,523 1,395,213 r46,4L9Total buiness-typegeæml obligation bondeddebt 6,284,'7961,029,523 5,255,273 1,056,419Comporent Unit - Glenview Lib¡aw$26,300,000 Geæ¡alObligation BondTapble Se¡ies 20094 25,840,0001,020,000 24,820,000 1,045,000Total gereral obligationbonded debts 14t,249,796 $ n,035,000 I 23,094,s23 S 129,190,273 $ 12,421,4192 GeæralLong-TemDebtAt December 31, 201 l, general obligation bo¡ded debt is comprised ofthe following:$1,955,000 General Obligation Refurdiag Bond Series of 20038Dated April l, 2003Due in ¿mul irotalLrents of $160,000 to $225,000 plN inte¡est at I 3-3 85% tlrough Decembe¡ Iis retired by buiness-type activity ir the Wholesale rrly'ate¡ Fu¡d2012. Debt$1 0,000,000 Gemral Obligation Bond Series 2006Dated December l, 2006Due in amual istall[Enb of$2,350,000 to $2,650,000 pl6 intetest at 3.7502 through December Iis retired by govemntal activity ir the Special Tax Allocation Fuud2018 Debt$5,000,000 Gere¡al Obligation Bond Series 20074Dated Decembe¡ 1 5, 2007Dueinamulistallnentsof$475,000 1o$635,000p18i¡fercstat350-375%tl[oughDæember1,2016 Debtis retired by buiness-tne activity in the Glenview Wate¡ Fund a¡d the Glenview Sanitary Sewer Fun¿$l,200,000 Gereral Obligatiou Boud Series 20078Dated DeceDber I 5, 2007DueinamulintallmenbofSl30,000to$l35,000plui¡terstat4.80-5.00oáthroughDecembe¡1,2016 Debtis retired by buiæss-¡?e activity iD the North Maitr Vy'ater and Sewer Fund$26,300,000 Gereral Obligation Bond Tapble Se¡ies 20094Dated May 5, 2009Due in amual isbllrent of $460,000 to $1,860,000 plN i¡terest at 3 000-4l25yo through December 1, 2029Debt ìs retired by proceeds f¡om a lib¡a¡y property tax levy.A-49 Village of Glenview, IllinoisNotes to Fimrcial StatementsDecember 31. 201 INOTE F - LONG-TERM DEBT (Continwd)2. Gereral Lom-Tem Debt (Conthued)$11,290,000 Gereral Obligation Refuadiry Series 2009DDated October 21, 2009Due in amual irotallments of $385,000 10 $1,640,000 plu interest at 2 0-4 0% through Decembet 1, 201 8.Debt is retired by goverrental activity ia the Special Tax Allocation Fu¡d-$ 28,1 25,000 Gere¡al Obligation Boud Series 2009EDated Oclobe¡ 21, 2009.Due i¡ an amul iutallnent of $28,125,000 plu interot of 2 35olo tluough December l, 2013Debt is retùed by govemntal activity itr the S pecial Tax Allocatiou Fud-$ 1 1, 035,000 Geæ¡al Obligation Refinding S e¡ies 201 IDated September 27, 201 1Due in amul iroAllrents of $5,575,000 aDd $5,460,000 plu i¡terest at I 500 - 3 000%though DeceEber l, 201 2Debt is retired by govemntal activity i¡ the Special Tax Allocation FudAt December 3 1, 201 I, mtes palable is comprised of the followiug$2,850,000 Corpomte Pu¡pose Notes Sedes I 997Dated September 2, 1997Due i¡ amual istallments of $215,377 iacludirg interest of 4 942% through September l, 201 9 Debt is ¡eti¡edby buiress-t¡pe activity in the North Maine 'ly'ate¡ and Sewe¡ Fu¡da Cu¡ent RefudineThe Village issued $11,035,000 of Gereral Obligation Refudilg Bonds fo¡ a cuent refuading of $11,000,000GeæralObligationBondSe¡is2001. Therefudingwsunderbkentotakeadvantageoffavo¡ablehterestratesThe reacquisition p¡ice erceeded the carryi¡g amount of the old debt by $35,000. The tauactiou ¡aulted i¡ areduction of$469,463 iD futue debt service palmentsNOTE F - LONG-TERM DEBT (Continued)3 Debt Seryice RequireEents to MaturitvGovermental ActivityAmul gemral obligation bond debt se¡vice requiremenß to mtuity for the Village's govemental activities a¡e asfollom:Village of Glenview, IllinoisNots to Fimmial StatemDtsDecepber 31. 2011Fiscal Year EndingDecembe¡ 3l - P¡irci¡alIDteres t20122013201420t520t62017 - 20212022 - 2024Year Endi4Decembe¡ 31.20LL20t220L320t420L52016 - 2019Totals$ 10,320,000 s 3,33r,22638,885,000 3,000,28812,230,000 t,943,6126,470,000 1,478,5506,740,000 1,243,0t219,020,000 2,910,2465,450,000 5L4.337s 99,11s,000 I t4,42t,27tTotalsBuiress-type ActivityAmual gereral obligation boud ald corponte pu¡pose notes payable debt seruice requirereub to @tuity for tbeVillage's buiress-type activities a¡e as follom:Gerenl Obìipation BondsCorDorâle Pumse NolesP¡imipal Interst P¡imipal Irterests 910,000 $ 146,908 s 146,419 $ 68,958710,000 L12,446 153,655 6r,722730,000 8s,708 t61,249 54,128745,000 58,272 169,219 46,158765'000 30'312 \:i,]i? "l'iz;$___j,8!9,099_ s ____g:,6{_ $ ___!::93_ $ ____:z_l:g_A-50 Village of Glenvieq IllinoisNot6 to Fiürcial StatementsDecembe¡ 31. 201 INOTE F - LONG-TERM DEBT (Contined)3. Debt Se¡vice Reouirements to Matuitv (Continæd)Comporeú Unit - Glenview LibraryAuul gereral obligation bond debt service ¡equùeæns to mtuily for the Village's component mil a¡e as follows:Year EndiryDecembe¡ 31.Gereral Ob)igatiou BondsInterestVillage of Glenview, IllinoisNots to Fimrcial StateEeDtsDecember 31. 201 INOTE G. INTERFLJND BALANCES AND TRANSFERSl Interfrnd BalaucesThe oubtaDding balarces between funds result roinly from the time lâg betreen th€ dates that (1) i¡terfird goods andsevices are provided o¡ ¡eimbmable expenditua occu, (2) trasactioro a¡e reco¡ded in the accoutilg s)6tero, and(3) pa¡ments betweeu fuDds a¡e mde Interfrnd balames are irteDded to be repaid cuently from other resouce ofrespectivefuds lndividulinterfu¡dbalarces atDecember3l,20ll areshomas follow:P¡ircipal$ 1,045,000 s 910,181r,070,000 878,8311,095,000 846,73II,125,000 813,8811,155,000 780,1316,355,000 3,294,1s67,615,000 2,02t,3565,360,000 446,039Totals$ 24,820,000 $ 9,99t,3064 Noncoroitnept Debt - Soecial Service A¡ea BondsThe special service a¡ea bonds outst¿ndhg as of Decembe¡ 31, 2011 totaled $453,996 These boDds are Dot anobligation of the Village and ate secued by the levy of special debt se¡vice on tle ¡eal property withia each specialse¡vice uea The Village ìs in m my liable for repayrcnt, but is only acting as t¡e agent for thÊ property owrs i¡lelying aud collecting the ass$smDts and fomrding the collectioro to the boudholde¡s This activity is accoutedfor ia an agercy fund, The Special Service Area (SSA) Bold Fund5 Comperuated Abserc6 and Other PosteEplomnt BeæfitsThe Geæ¡al Fud is sed to liquidate any liability for compeßated abseuces o¡ other postemplo¡ørent beref,is ofgoremental activities6 RevolvineLireofC¡editThe Village has available a $15,000,000 li¡e of c¡edit with Glenview State Bank which expire on December 3l2012 The lire of c¡edit ms trot ued duiDg 201l, and the¡e ms m oußtanding balarce20r220t32014201520162017 - 20212022 - 20262027 - 2029FundGere¡alNomjrr GovermntalNomþr GovermntalGere¡al FmdLess amub elimimted ùnder GASB 34InterfrDd loam are mde ia anticipation of future receipß2 Due to/f¡om Peroion T¡utsFundGere¡alPolice PeroionFirefrghten' PeroionPolice PemiouGere¡alFirefightere' PeroionGeneralLoaru to p€Niou trN E are mde in anticipation of futue receipßI¡terfi¡ndPalabless 80,975 $ 63,60080,975 63,60063,600 80,97563,600 80,975144,575 t44,575(r44,s7s) (t44,s7s)$-$-InterfundReceivable24,60624,606DueDueToFrom$s 24,60639,54464,15039,s4439,544$ 64,1s0 $ 64150A-51 Village of Glenvieu IllinoisNot6 to Fiürciâl S tatemntsDecembe¡ 31. 201 ISpecial Tax AllocationWholesale Wate¡Glenview SaniørySewerGere¡alVillage PermrentWholesale Wate¡Village of Glenvieq lllinoisNot6 to FiBmial StatemeDtsDecember3l.20llNOTE G - INTERFIJ'I.ID BALANCES AND TRANSFERS (Continæd)3 Adwrces to/f¡om Othe¡ FundsFudViüage PemmntSpecial Tax AllocationNorth Maiæ Wate¡ and Sewe¡Adwnce AdvarceNOTE G - INTERFUND BALANCES AND TRANSFERS (Contirued)4 Inte¡fu¡d Trarofe¡s (Continæd)a Primry Govemnt (Continæd)Tmmfen InF¡om Tos 15,199,590 S -3,684,298I 8,883,888Glenview Wate¡Glenview S anitary SewerGlenview Sanitary SewerComuter ParkingGere¡alSpecial Tax AllocationSpecial Tax AllocationSpecial Tax AllocationNomþr GovermntalGerenlGlenview S anitary S ewerNomþrGovemrtalTraßfeß C)utFacilities ReplaceEeutNomþrGovemntalVillage PemrentNomjrrGowrcntalNomÞr GovermntâlNomþr GovermntalGlen Land SalesGcreral Obligation Tapble Bond Se¡ies of 2009ENomjrrGovemntalEscrow DepositSpecial Sewice AreasSpecial Sewice AreasT¡amfers OutAmout$ 882,000|,4r5,72314't,3401,072,8't6I,094,882r,270,365I 0,057,8951,4049,20t,l I 335,59519,63722,477$ 34,905,808Special Tax AllocatiouVillage Permænt- 15,199,590- 15,199,590- 3,684,298- 3,684,29818,883,888 r8,883,888(15,199,590) (15,199,s90)$ 3,684,298 $ 3,684,298North Maiæ Wate¡ a¡d Sewe¡Village PermrentLess amouts elimimted under GASB 344 Intedund TmNfersT¡arofen are Ned to (l) moye revenues ftom the fund with collectiou auttro¡iætion to the capital prolct frud orenterprise fund as debt seryice aud interct paymnts becoæ due, or (2) move restrictÊd geæral fund revenres tofmrce wriou prograru that the govemnt mut accout fo¡ in othe¡ funds i¡ acco¡darce with budgetaryautho¡ization Interfund t¡amfers a¡e ¡ecorded for perrurent lraNfen between fu¡ds wbich are mt expected to berepail Iudividul iaterfud taËfere duing the fncal yea¡ ended December 31, 2011 we¡e as follom:a Primry GovermentT¡arofen IuTnrofe¡s OutAmoutLibrary Gift Library Waveri4 Gift $ I 3 8LibnryNewBuilding Friends of thelibmry 235,129LibraryNew Buildiag Library Wavering Gift 80,719LibraryNewBuildiry LibraryGift 12,524Library New Buildiry Glenview Public Library Fourdation 157,323Library New Buildiry Library Wason GiÍt 54,207$ 1,140,040NOTE H. CONTRACTUAL COMMITMENTSI HigÞI-evel Excess Liabiliw Pool (HELPìThe Village is a mmber of a þiat ventuq t}e HigÞLevel Ercess Liâbility Pool (HELP) The contract with HELPprovides excess liability irouarce (see Note I)b. Comporent UuitTnmfere InAmoutGere¡alGereralGeæ¡alNomþr GoverrentalNomþr GovermDtalNomþr Govermntal$276,277300,00032,9053,997,O044,629,O35449,280A-52 Village of Glenview, IllinoisNotes to Fimncial SlaterentsDecember 3t. 201 1NOTE H - CONTRACTUAI COMMITMENTS (Contiaued)2 Solid Waste Agepcv of Nofhern Cook Comtv ISVy'ANCC)The Village is a membe¡ of a jrint ventue, the Solid Wastc Agercy of Northem Cook County (SWANCC) Thecontnct wit¡ SWANCC provids thai each membe¡ is liable fo¡ its proportiomæ share of any costs arising fromdefaults in pa)ænt obligatioN by otler members (see Not€ I)3 Economic Develooment Ag¡eeffntIn 2000, the Village ente¡ed into an economic developrent agreemnt with a local ¡etaile¡ who wished to relocate iboperatioro to the Villâge Under the tem of the agreemen! tbe Village will rebate a portion of local sales tax receipßgeærated by tÏe letailer oye¡ a base amomt The agrcement is coutingent on tlrc retailer mintaining their facilitywithin the Village for a pe¡iod of at l€ast fifteeu years tom the effective date of the agreemeDt In fucal year 201I ,the Village mde palments to the retailer totaliug $1,1 6ó,206 in acco¡darce with the tem of this agreemnt4 Coßtruction CoñmitrnentsThe Village bas certain contacß il w¡iou funds for coÉt¡uction p¡oicß which were ia progrss at Decenber 31,2011 RemiDing comitmnts under these cont¡acts approximted S522,000Village of Glenview, IllinoisNotes to Fi&rcial StatementsDecembe¡ 31. 201 INOTE I - JOINT VENTURES (Continued)2 Solid Waste Acercv of Northen Cook Comtv (Continæd)The æmben form a contiguou geographic sewice a¡ea, which is located mrthwest of domtou Chicago Uude¡ theS V/ANCC Agrcemnt additioml membe¡s my jrin S WANCC upon the approval of each memberSV/ANCC is goverred by a Board of Di¡ecÎos, which coroist of ore appointed Mayor or P¡esideut from eachmmber muicipality. Each Dir€ctor bas an equl vote Th€ seve+mmbe¡ Executive Comittee of S'ùr'ANCC iselected by the Boa¡d of Di¡ecto¡s. The Boa¡d of Directo¡s dete¡mires ttre general policy of SWANCC, rukes allappropriatioro, approves contact, adopts raolutiou providing for ttre issuarce of bouds or nots by Srùr'ANCC,adopß bylaws, rules and regulatioro, and exe¡cises such powers and perfom such duties as my be pracribed in theagreement or ttre by lamIn acco¡dauce with t¡e iiÂt veDtue agreetrnt, the Village ¡emitted $573,977 to S'r¡r'ANCC for the year endedDecember 31, 201I The pa)ments are ¡ecorded in the Refue and Recycling Fund, ore of the Village's notmlrspecialrevenuefunds TheVillagedo6mthâyeanequityi¡terestitrSWANCCatDffember3l,20ll.Complete fimæial statemeDts fo¡ S\ryANCC can be obtaiæd f¡om SWANCC's administative offrce at 2700 Pat¡iotBoulevard, Suite 110, Glenview, Illi¡ois 60026, o¡ ftomSWANCC's web sitg w.swarcc orgNOTE J. EMPLOYEE RETIREMENT SYSTEMSI Illinois Muicioal Reti¡erent Fuda Plan DscriptiotrThe Village's defned berefit pemion plan, for regular employees, provides retirement and disability benefrts,postetirement increases, and death beÉfits to plan mmbe$ a¡d benefrcia¡ies The employer plan is affrliatedwith the Illi¡ois Municipal Reti¡eænt FuDd (IMRF), an agent multipleemployer plan Berefrt provisios a¡eestablish€d by statute and my only be cbanged by the General Assembly of the Stat€ of Illimis IMRF issues apublicly awilable fimrcial report that ircluds fmmial statement and required suppleæntary informtior Thatre port my be obt¿itrd onlire at w. imrf orgb Fundim PolicvAs set by state statute, the Village's regular plau members are required to cont¡ibute 4 5 percent of thei¡ amulcovered salary The statute requùes the Village to coDtribute the amout recessary, i¡ addition to æmbe!cont¡ibutiom, to fmDce ttre retiremeut cove¡age of its om employees The Village amul required contributionrate for calendar yrar 201 I ws l3 44 percenL The Village also contributes for disability berefrß, death berefits,and supplereutal retirement berefrß, all of which a¡e pooled at the IMRF level Contibution ¡ates for disabilityand death bemfifs are set by the IMRF Board of Trutees, while thÊ supplemental relireænt berefiß rate is set bystate statuteThe Village has comitted to puchase ercess liability imuarce from the High-Level Excess Liability Pool (HELP)The amout owed has been calculated uing the Village's curent allocation perceutage of 9 51 7o In futue years, tltisallocat.ion percentage will be subict to cbange becaue the HELP agr€eneDt provides that eacb æmbe¡ will beassessed an amout based upou a formula that uo the following criteria for allocating premiw costs- Miles of streets - Nmbe¡ of moto¡ vehicles- Nmbe¡ of full-tire equivalent employees - Operating revenuesThe Village's agreerent with HELP also provides that each membe¡ is liable fo¡ its propoÍiomte share of any cosLsarising from defaults in pa1ænt obligatioN by othe¡ mmbeß, (Sæ Note E-3 for mre detail regarding HELP )2 Solid Vy'aste Asercy of Northen Cook CoutyThe Village is a membe¡ of Solid Waste Agercy of Northeru Cook Couty (SWANCC), which comists of twent¡ltluee muicipalities S'TVANCC is a muicipal corporatioD and public body politic eslablished pusuDt to theCofftitutioD of the State of Illinois and t¡e Intelgovemntal Cooperation Act of the Slate of IlliDois, as amnded,(the Act) SWANCC is empowered unde¡ the Act to plaA coNtuc! fence, opeÉte, and minøin a solid wastedisposal s]6tem to serye its membe¡sA-53 Village of Glenvieq IllinoisNotes to Fimrcial StaiemntsDecembe¡ 31. 20llNOTE J - EMPLOYEE RETIREMENT SYSTEMS (Continæd)I Illimis Mmicioal Reti¡ement Fu¡rd (Continued)c Anual Peroion CostsThe required contibution for calendar year 201 I was $2,073, 8l IVillage of Glenview, IllinoisNotes to FirEucial S btementsDecember 31. 201 INOTE J - EMPLOYEE RETIREMENT SYSTEMS (Contiaued)2 Police Pemion Funda. PlanDesc¡iptionPolice-swom persorel are covered by the Police Pemion Pla4 which is a defired bemfit siDgle-employer peroionplan Although this is a singleemployer peroion plaq the defned benefrts and employee aud employer contributionlevels are govemd by Illinois State Statuts and my be aænded only by the Illinois legislature Administativecosts a¡e frorced though i¡yestreDt eamings. The Village accomts for tbe plan as a pemiou ü.wt fud A¡actua¡ial valution ws performd as of December 3l , 2011, aud, accordingly, the most ¡ecent avail¿blei¡fomtion bas beeu preseutedAt Decembe¡ 31, 2011, tbe Police Pemion Plan membeship coru jsted ofMembe¡shipReti¡ees and beneficiaries cueutly receiving berefit and terminated employeesentitled to berefiß but not )€t ræeiviDg themCurent employees:VestedNonvestedTotal membershipThe required contibutiou fo¡ 201 I ws determi¡ed as part of the Decembet 31, 2009 acturial valution uing theeDty age norul actu¡ial cost mthod The actuadal assmptioro at Decembe¡ 31, 2009 ircluded (a) 7 5%itrvesttrnt rate of retm (ret of admi¡ist¡ative a¡d di¡ect investmnt experoes), (b) proicæd salary irc¡eases of4.0/o a yeu, ¿ttributable to inflatioq (c) additioml p¡oicted salary imreases ranging from 0 4%. to 10 0% peryear depending ou age and service, attributable to seDiodty/merit, and (d) postretiremnt bercfit inc¡eases of 30áamully. The actu¡ial value of the Village regùla¡ plan assets was dete¡mired uing techniqæs that spread theeffecß of shofi-te¡m volatility in tlre m¡ket relue of investænts over a five-yrar period with a 20o/o conidorbetween the actuadal and m¡ket mlue of assets The employer regular plarls u¡fünded acturial accrued liabiltyat Dæembe¡ 3 l, 2009 is being amortized as a level percentage of proicted payroll on an open 30 year basisd Fuded Statu and Fundipg P¡ogressAs of Decembe¡ 31, 2011, tìe mst recent actu¡ial valution dâte, the regìIar plan ms 61 45% fuaded Theactuari¿l acc¡ued liability fo! berefib was 54I,668,646 aud the actu¡ial value of asseb ws $25,605,004,resulting in an mde¡funded acturia.l accrued liability (UA!A,!) of$16,063,642 The covered payoll fo¡ cale¡da¡ltar 201 I (auul payroll of active employees covered by the plan) ws $l 5,430,179, and the ¡atio of tlp UAALto covered payIou was I 049/0The schedule of funding p¡ogress, presented as Required Supplementary Informtion following the Dotes to thefercial stat€rents, preenß multiyea¡ t¡e¡d bfo¡mtion about whettre¡ the actu¡ial value of plan assets isincreasing or decreasing over tÍme relative to the acturial accrued liability for berefrtsFiscalYea¡AmulPemiouPe¡ceDtageofAPCContibutedNetEndi¡g Cost(APC)2,073,81 8I,988,81 8t,822,378r2ß0lttI2ß0ÃOr2ß0109100100100PeroionObligation$%$4459l3LL6The following is a swry of the Pol-ice Peroion Plan as provided fo¡ in Illi¡ois StatÊ Statutes The PolicePemion Plan provides reti¡emnt berefiß as well as death and disabi.lity bereûts Covered employees attaiaing theage of 50 or mo¡e with 20 or mo¡e )æaß of c¡editable se¡yice a¡e eúided to ¡eceiye an amul ¡etirereût bereûtequl to ore half of the salary atøcbed to the ¡auk held on the last day of sewice, or fo¡ om year prior to the lastday, whichever is greater The amul beæfit shall be ircreased by 2 57o of such sal,ary for each additioml year ofseryice over 20 )€ars up to 30 yeaß, and I % of such salary for each additioml year of sewice over 30 yea$, to amximm of 75% of such salary. Emplo)€s with at least eight yean but less than 20 yean of credited sewice myretire at or aftet age 60 and ¡eceive a reduced berefrtThe mnthly beuefit of a police officer who ¡eti¡ed with 20 or mre Jrears of service afte¡ Janury 1, 1977 shall beircreased amually following the fñt amiveßary date of retiremu! aDd be paid ùpotr reaching the age of at least55 years, by 3% of the origiml pemion and 3% sinple iaterest amuUy thereafter Effectve Janury l, 1993, thesecond and subsequeDt peffion ircreases (other than disability pemion i¡creases) will be computed on the cureúpeNion ratler than the origiml pemiorA-54 Village of Glenview, IllinoisNotes to Fimrcial SbterentsDecember 31. 2011Village of Glenvieq IllinoisNotes to FimrciÂl StatemntsDeccmbcr 3I. 201 INOTE J - EMPLOì'EE RETIREMENT SYSTEMS (Coutiaued)2 Police Pemion Fud (Contiawd)a. PlanDescriotion(Continued)StatÈmndated police employees are required to contribute 9 9l % of their base salary to the plan If au employeeleaves cove¡ed emplolDeDt with less than 20 yea¡s of se¡vice, accuulated employee contributiom my berefunded without accmulated inte¡est The Village is required to contibute the remid4 amouß recessary tofume the plan as actuariaUy detemiued by an euolled açtEry. By the year 2033, the Village's cont¡ibutioromEt accmulate to the point where the past service cost for the plan is fully fmded Tbis calculatiou is basedupon a level percent amortiation fo¡ a closed periodb S trerv of Sienificant Accoutins PoliciesBqsis ofAccountíngThe fimrcial statetrnts are prepared Nitrg tlte acc¡ul basis of accoutilg Employre and employcr coutributiomare recoguiæd as revetrH in the period in which employee seryices a¡e perfomd Berefrb and ¡efu¡ds a¡erecognized when due and payable in accordarce with the tem ofthe plan No staDd-alone statenenß a¡e issuedfo¡ tbe delred berefit pemion planMethod Used to Value InvestmenlsInvestrenß are reported at fair value. Short-te¡m i¡vestreDts are reporEd at cost, which approxiüts fair wlueSecuities tsaded on a mtioml or inte¡utioml exchange are nlued at the last rcported sales price at cufeDterchange rates. IDvestrent that do mt bave an established m¡ket a¡e reported at estimated fair ulreNOTE J - EMPLOì'EE RETIREMENT SYSTEMS (Coutinued)2 Police Peroion Fmd (Continued)b S l¡¡rrm¡-v of S ienifrcant Accouti¡g Policie (Continued)lv{el hodtr and A;v m F ¡onsValuation DateActurial Cost MethodActuarial Value of AsseßAnortizaton MethodRemiailg Amortizatiou PeriodActuarial Assuptiom:lnvestreDt Rate of RetumProicted Salary Imreases(seuiority and mrit)Payroll GrowthIDflation RateCost of Living IrcreassAssued MortalityDecembe¡ 31. 201 IProicred Unir Credit (Effective I /l /201 I )Suoothed Ma¡ke t ValreLeyel Perce[tage ofPayroll Closed22 5 Yeas7-25Yo per yezrTCG Basic Salary Table providiq gradedirc¡eases from 1 l2.o/o to 4 86%o varybgby age, plu i¡flation rate shom below4 5%"per yeat2 5%o pet ¡eat3 00% per yearRP-2000 Combined Høltly Mortâlity Table(mle) with blue collar adjatnent and with a200% load for participants uder age 50 andI 25% for participant age 50 and overA-55 Village of Glenvieq lllinoisNotes to Fi¡arcial StatemntsDecember3l.20llNOTE J - EMPLOYEE RETIREMENT SYSTEMS (Continæd)2 Police Peroion Fund (Continæd)b Sl¡mry of Signifrcant Accoutiru Policies (Couti¡ued)Funding Slatus and Funding ProgressValution DatePerceDt FudedActuarial Accred Liability for BereñtsActuarial Valw ofAssebVillage of Glenvieq IllinoisNotes to Fi¡arci¿l StatemûbDecember3I- 2011NOTE J - EMPLOYEE RETIREMENT SYSTEMS (Contirued)2. Police Peruion Fud (Contiaued)c. Amul Pemiou Cost ard Net Pemion BercfitThe Village's rcst recent acturial wlution ms perforred æ of December 31, 20ll The Vi.Uage's amulpe$ion cost aDd ret pemion berefrt to the Police Pemion Fu¡d were æ follom:December3l,20ll90 s0%s59,435,239$s3,788,060Amual required contibutionIDterest on reÎ peNion berefitAdþtrent 1o amul required contibutionADUaI pesion costLess:Contributiom mde(Ircrease) in ret peroion bereltPrepaid peroion (berefit) at J¿trury l, 201IPrepaid peroion (beæfit) at December 3 I , 201 ITh¡eeYear Treud I¡fomtion - Police Peroion Trut Fu¡d$ 1,347,587(61,342)56,033t,342,278I,767,986(425,708)(r,01 1,683)$ (1,437,39r )Unfuded ActurialAccrcd Liability (UAAI)s s,647,t79Covered Payroll (Amul Paytoll ofActiw Employees Covered bythe Plan$ 6,603,509Ratio ofUAA! Covered Payoll85 52yoThe schedule of fuading progress prcented in the Required S uppleæDtary lDfomtion (RSI) following the notesthe fmrcial statereDts, presents multipar tend i¡fomtiou about whether the actudal value of plan assets arcimreasirg or decreasiag over tiæ relative to tlle acturial accrued liability for berefits.Si gn¡ Íc anl Inve st me nl sThe¡e a¡e no significaat investment (other than U.S Govemeut-guratrteed obligatioro) il any ore organiationthat represent 50¿ or mo¡e ofnet assets awilable fo¡ benefits.d T¡end InfomtionFiscalYea¡EDdi¡gAmul PerceDtagePeuion Actul of APCCost (APC) Coutibution Contibut€dI2ßI/ITr2ßr/r0L2ßt/09$t,342,278 S1,340,760|.147.600t,767,986t,802,629I,I68,933t3I 72yo st34 4585.27Net PemionObligation(Beæfit)(t,437,391)(1,011,683)(s73,tt2)A-56 Village of Glenview, IllinoisNots to Fimrcial StatementsDecembe¡ 31. 20I1NOTE J - EMPLOYEE RETIREMENT SYSTEMS (Continæd)3 Fi¡efrehters' PemionFunda PlanDesc¡iptionSwom frefighter persoml are covered by the Firefrghters' Peroion Plan, which is a defwd beneff siDgle-employer pemion plar Although this is a singl*emplo¡rr pemion pla4 the defned beæfrts a¡d employee andemployer contibution lerels a¡e goveræd by Illinois St¿te Statutes and my be amnded only by the Illircislegislatua Admi¡istrative costs are fmrced tlrough investment eami¡gs The Village accouts for the plan as aperuion trut fund The Village's most ¡ecent actu¡ial valution was perfomed as of Decembe¡ 31, 2011, an{accordingly, the mos I receDt available i¡fo¡mtiou has been p¡eseûtedAt December 31, 2011, the Firefrghte¡s' Peroion Plan rembenhip comisted ofReti¡ees and benefciaries curently receiving berefrts and temimted employeesentided to beEfiß but mt yet ræeiving themCurent employees:VestedNonvestedTotal membenhip152The following 15 ¿ 5rmmary of the Firefrghten' Pemion Plan as provided for i¡ Illimis State S tatutes Th€Firefigbters' Pemion Plan provides ¡eti¡eænt berefits as well as death and disability berefrß. Covered enployeesattaining the age of 50 o¡ more with 20 or rcre yean of creditable seryice are eutitled to receive an amulretirerent benefit e qul to ore half of the salary attached to the rank held on the last day of se wice, or for oæ yearPrior to ttre last day, whichever is greater The amul be¡efrt shall be irc¡eased by 2 5olo of such salary for eachadditioml year of seryice ove¡ 20 )€ars up to 30 years, and I oá of such salary for each additioml year of se¡viceover 30 years, to a roximm of 75% of such salary. Enplo¡res with at least eigbt yean but less than 20 years ofcredited service my retire at or after age 60 aDd receive a teduced berefitThe mntbly benefit of a Firefigbters' offrce¡ who reti¡ed with 20 or mre ]€aË of se¡vice afte¡ Janury l, 1917shall be ircreascd amully following the firet amiversary date of retùeren! aud be paid upon reaching the age ofat least 55 )€a$, by 3% of the origiml peroion and 3% simple interest ammlly the¡eafter Effætive Janury l,1993, the second and subsequent pemion imreases (other than disabi.lity pemion increases) will be computed oDthe curent pemion mther than the origiml peroionNOTE J - EMPLOYEE RETIREMENT SYSTEMS (Continæd)3 Fi¡efishten' Peroion Fud (Continued)a PlauDesc¡iotion(Continued)Village of Glenview IllinoisNotes to Fi¡arcial S tatemenßDeçember 3l . 201 IMemberehipCovered fuefrghter employees are rcquired to contribute 9 455%. ofther base salary to the plan If au employeeleaves cove¡ed emplolm€ut with less lban 20 yeare of seryice, accuulated employee contributioro my be¡efurded without accmùlated iDterest The Village is required to coDtribute the remining amuß reçessary tofmme the plan æ acturially determiæd by an euolled actmry By tbe year 2033, the Village's cont¡ibutioromut accuulate to the poi¡t where the past seryice cost for the plau is fully fuaded This calculatiou is basedupon a level percent amrtiz¿tion for a closed periodb SlJmr], of Sisnihcant AccomtiE PoliciesBas¡s ofAccoilnlingThe fimrcial statemnts are p¡epared uing the accrol basis of accouting Employee aud employrr contibutioroare recogniæd as reveuws in the period in which employee se¡vices are perforrecl Beæfrb and ¡efuds a¡erecogniæd when due and payable in accordame with the te¡ru ofthe plan No stand-alole stateænts are issuedfo¡ the defrued berefrt pemion plantr'futhod Used to Vqlue InvestmentsInvestreDts are reported at fair wlue Short-æ¡m investmnts are reportcd at cost, which approximtes fair valueSecuities t¡aded on a mtioml o¡ i¡te¡mtioml exchange are valued at the last reported sales price at curentexchaDge mtes. InvestrcDß tlEt do mt hÂve anestablished mrket are repofted at stiÐated fai¡ value725327A-57 Village of Glenvieq lllinoisVillage of Glenvieq IllinoisNotes to Fimrciâl StatemnßDecembe¡ 31. 201 INotes to Fi¡amial StatemntsDecember3l.20llNOTE J - EMPLOYEE RETIREMENT SYSTEMS (Contirwd)3 Firefrshteß' Pemion Fud (Contiaued)b S u¡mry of S ienificant Accoutiü Policies (Continred)lufuthods and AsnmpionsValution DateActuadal Cost MethodActu¡ial Value of AssetAmortiation MethodRemi¡ing Anortiutiou Pe¡iodActuarial Assmptioro:Investtrnt Rate of RetunProicæd S alary Iacreases(s eniority and meriQPalroll GrowthIn{latiou RateCost of Living IrcreasæAsswd MorhlityDecember 31, 201 IProþted Unit Crcdit (Effectire l/l /2011)Smothed Ma¡ket ValueLevel Percent¿ge ofPayroll Closed22 5 Years7.25Yo per W¿rTCG Basic Salary Table providirg gndedim¡æses f¡om I l2Yo to 4 86Y. wrytagby age, pls inflatiou rate shom below4 5vo pet ynar2 57o per Yeøt3 00Yo per yearRP-2000 Combired Healthy Mortality Table(mle) with blue collar adistænt aud with a200% load for participants urder age 50 andI 25% for participant age 50 and overNOTE J - EMPLOYEE RETIREMENT SYSTEMS (Contiaued)3 Firefrshte¡s' Pemion Fud (Contiaued)b Sumw of Sig¡ifrcant Accoutiu Policies (Continred)Fundíng Slatus and Funding ProgressValution DatePercent FudedActua¡ial Acc¡ued Liability for BerehbActua¡ial Value ofAsseßUnfu¡ded ActurialAccræd Liability (UAAI,)Covered Payroll (Amul Payroll ofActive Employees Covered bythe PlanRatio of UAAL Corered PayrollDecember 3l, 201 I7s 67%s75,563,246s57,176,567sI 8,386,679$ 7,19s,1622s5 s4%The schedule of funding p¡ogress prðented itr the Requûed Suppleænlary Infomtion (RSI) following tbe mtesthe fi&rcial statetrnb, presents multi)€a¡ teDd iDformtioD about wlÉthe¡ the acturial wlue of plaD assets areircreasiag or decreasing owr tirc relative to the actudal accrucd liability for beæfrts.Signilcanl [nv$tmenlsThere are m sigDificaut iDvestæDß (other tbaD U.S. Goyemut-gufaûteed obligatioro) ia any oæ orgauiztionthat represent 5olo or rcre of net assets available for beæftts.A-58 Village of Glenview, IllinoisNotes to Fiürcial StatemenßDecembe¡31.2011NOTE J - EMPLOYEE RETIREMENT SYSTEMS (Conti¡ued)3 Fi¡efrshteß' Peruion Fud (Contiaued)c Amul Peroion Cost aDd Net PeNion BeDefitThe ViÌlage's mst receÂt actu¡ial valution was perfomd as of December 31, 2011, The Village's amulpemion cost and ret peruion beæht 10 the FireÍghteß' Peruion Fund were as follows:Village of Glenvieq IllinoisNotes to Fimrciâl StateDentsDecember 31. 201 INOTE J - EMPLOYEE RETIREMENT SYSTEMS (Coutinued)4, Emplowe Reti¡emnt Svstem - Defired Berefrt Peroion PlaroThe Village contributes to two defrcd beæfrt pemion plam, the Police Pemion Pla4 whicb is a singleemployerpemion plaq and the Fir€fighteis Pemion Plan, which is also a singleemployer peroion plan The berefib, berefrtlevels, emplo)€e contributioro, and employer contibutiom are governed by Illinois Compiled Statutes and can only beamended by the Illimis Geæral .4ssembly.NOTE K - OTHER POSTEMPLOYMENT BENEFITS (OPEB)l. PlanDesc¡iptionThe Village provicles posteDploymil health ca¡e a¡d life iuuame berefits (OPEB) for retired eDployees tkough asi4le-employer defred berefrt plan The berefits, benefit levels, employee contibutiom, and employer contributiomare goverred by tle Village and can be aænded by tlrc Vill,age through is pereorel mnul aud uiou coDtacb Theplan is not accounted for as a lmt fu¡{ as au inevocable tut has mt b€etr estabüshed to accout for the plan Theplan does mt issre a separate reportTo be e ligible for berefiß uder the pla4 aû emplo)€e m6t qulify for retirement urde¡ ore of the Village's retiremilplam Elected offrcials are eligible for berefits if they qulify for retirereDt through the Illinois Muicipal RetirementFundAll health ca¡e beæflÎs are provided tlrough the Village's self-imued health plan The bereût levels are ttre same asthose affo¡ded to active emplolees Beæû6 irclude gereral inpatient aDd outpatient ædical sewices; rentalmryou, aDd substarce abce care; vision care; dental care; and prescriptioro Upoa a retiree reaching Medicareeligible age, Medica¡e becoms the primary irouer and tbe Village's plan becoæs secondaryAt DeceEber 3l, 2011, mmbenhip in the PlaD coEisted of the followirg:Reti¡es a¡d bereficiaries receiving berefrbTermiruted employees entided to but mt yet receiving berefrtsActive veted plan membenActive uonrested plan rembe¡sTotal membershipAmul required contributionInterest on ret peNion berefilAdÞtrent to amul required contibutionAmml peroion costLess:Cont¡ibutioro mde(Ircrease) in net peruion beæfitPrepaid peroion (bereíÐ at Janüry l, 201 IPrepaid peroion (berefit) at Decembe¡ 3t, 201 ITh¡ee-Yea¡ T¡end I¡fo¡mtion - Fi¡efishten' Peroion Trut Fud$ 2,168,r05(35,403)32,3392,!65,04I2,806,961(64r,920)(996,75r)$ (1,638,671 )d T¡end Info¡mtionFiscalYearEudineAmualPemionCost (APc)ActulContibutionPercentageofAPCContibutedNet PeroionObligation(Berefit)0,638,671)(996,751)(387,08r )t2ßI/11L2ßt/t0r2ß1/O92,165,041 $2,159,2451,652,O962,806,9612,54r,8701,985,871r29 65% S102.31102 3tA-59 NOTE K - OTHER POSTEMPLOYMENT BENEFITS IOPEB) (Conthued)2 Fundim PolicvThe Village mgotiates the contibution perceutågs between the Village and employees tluough the uion contactsand penomel policy. All retirees cont¡ibute 100% of the acturially determiæd premiu to the plan and the Villagecont¡ibutes the ¡eminde¡ to cove¡ the cost of providiag the berefits to the ¡eti¡ees via the self-irouame plan (pay-as-you-go) Sime the Village is self-iroued, this amout fluctutes on an amual basis Active emplo)€es do mtcontribute to the plan util retirement3 Amul OPEB Cost and Ne t OPEB OblieatíonThe Village's mst recent actua¡ial wlution was performd for the plan as of Decembe¡ 31, 2011 The Village'sauual otåer postemplo)æÃt beæfit (OPEB) cost is calculated based on tle amual required contibutiou (ARC) oftbe emploltr The coutribution rep¡esents a level of fu¡ding tba! if paid on an ongoing basis, is proicted to cover thenorml cost each ¡rc¿r and to amortize any unfuded actuarial liabilities or funding excess over a period mt to exceedthirty years The following table shows the compoueDts of the Village's amul OPEB cost fot the year, the ammtactually contributed to the plaq and charges in the Village's ret OPEB obligation to the Village's Health ImunmePlau for Retired Employæs as of December 31, 201 IAmoutVillage of Glenvieq lllinoisNot6 to Fimrcial StatemntsDecember 31. 201 INOTE K - OTHER POSTEMPLOYMENT BENEFITS IOPEB) (Contiaued)4 T¡end I¡fo¡mtionThe Vülage's auul OPEB Cost the percentage of am@l OPEB cost cont¡ibuted to the Pla4 and tlrc æt OPEBobligaúon for fscal year 2011 is as follow:Trepd Ipformtion- Other Postemplownt BeæfitsVillage of Glenview, IllinoisNots to FimDcial StateDentsDecepber 31. 201 1EndDSFiscalYea¡AmulOPEBCostNetOPEBObligation9l 6,878686,245459,392Pe¡centageofOPEBContibutedt2/3t /20tr $Lzßrl20t0t2ßU2009s9 70yo60 10yor44 40yos7t,999568,219583,029Amul Required Contribution (ARC)Interest on mt OPEB obligationAdjwtrent to amul required contibutionAmual OPEB costCont¡ibutiom mdeIncrease in OPEB obligationNet OPEB obligatioD at Janury l, 2011Net OPEB obligation at Decembe¡ 31, 20ll$ 560,56234,312(22,87s)s71,99934I,366230,633686,24s$ 916,8785 Fudine Policv and Acturial Ass uptioroActuarial valutioN of an ongoing plan involve estimtes of the value of reported amuLs and assuptiom about theprobability of occuerce of evenß far i¡io the futue Enmples iaclude assuptioro about futue eDploylrent,mrtality, and the beahhca¡e cost teDd Amouts detÊmiÆd regarding the fù¡ded statN of the Plan and the amulrequired contributioro of the employrr are subþt to continul ¡eyisiou as actul resùlts are compared witl pætexpectatioN and rew estirotes are mde about the futueProictiom of beæfrß fo¡ fmmial reportiag purposes a¡e based on the substantive plan (the plan as uderstood bythe employer and the plan mmbers) and imlude the types of benefrß provided at the tiæ of each valution and thehistorical pattem of sharing of berefrt costs betweeD ltre employer and the plau mmben to that poi¡t The actu¡ialæthods and assuptioro ued i¡clude tÊcbniques that are designed to reduce the effects of short-terE volatility ilactuarial accrued liabilities and the achn¡ial valùe of assets, coruistent with the long-ærm perspective of thecalcul¿tioroA-60 Village of Glenview, IllinoisNot6 to Fimrcial StatementsDecember 31. 201 INOTE K - OTHER POSTEMPLOYMENT BENEFITS IOPEBI (Conti¡ued)5 Fundim Policv aud Actua¡ial Assmptiom (Contirued)The following sinplifying assuptioro we¡e mde:Cont¡ibution rates:VillagePIan Membe¡sActuârial wlutioû dateActuarial cost methodAmortization periodRemining amortization periodAsset Elution methodActuarial assmptiom:Investment mte of retun*Proicted salary imreasesHealthca¡e inflation nteMorlatility, Tumver, Disability,Retirerent agesS are rates utilized fo¡ IMRF, Policq and FirefighterPemiou FurclsPercentage of active employeæAssmd to elect benefit75%Employer provided benefrtExplicit (eligible disabled peroioren): 100% ofpremim for lifeImplicit 40% ofpremiu to age 65 (50% of$620/m +50%of $1,235 /m)*lrcludes i¡flation at 3 007.o.oÙyoDeceEber 31, 201 IEntry AgeLevel percentage of pay, opeD3 0 )€aEMarket5.00y"5 00yio8.00% i¡itial6 00% ulrim¡teVillage of Glenview, IllinoisNotes to FiBrcial StatementsDecember3l- 2011NOTE K - OTHER POSTEMPLOYMENT BENEFITS (OPEB) (Continued)6. Fu¡diu Søtm and Funding Prog¡essThe fi¡nded stât6 of the plan as of December 31, 2011, thÊ date of the latest valutio4 ms as follow:ActuarialAccruedliability(AÁL) $ 9,556,094Actuari¿l Value of Pl¿n Asset $ -UDfuded Actudal Accrued Liability (UAAI) $ 9,556,094Fuded Ratio (acturial wlue of plaD asses / AAL) 0.00yoCovered Payroll (active plan members) 529,228,867UAAL as a pe¡centage of cowed payroll 3270yoThe schedule of fuding prog¡ss p¡6eÂt€d ia the Required SupplemeDta¡y Informtion (RSI) following tbe rctes tothe fmncial staterenß, preseDß multiyear trend info@tion about whefhÊ¡ the acturial valæ of plao assets isircreasiag or decreasing over time relative to tlÉ acturial accrued liability for bereítsNOTE L - PENSIONTRUST FTINDS - FINANCIAT DATAI Schedule of Fiducia¡v Net Plan Asseb as of Dæembe¡ 3t. 201 IFund$ 2,2s4,279 $29,054,5'79TotalPeroionTru1FudsPolicePeroionFirefighten'PeroionFudASSETSCash and cash equimlentsInvestrreutU.S goretmnt and agercy obligatioroMuicipal obLigatiomEquity mutul fundsAcc¡æd inte¡est ¡eceivableDue from primry govemntPrepaid experoesTotal assebLIABILITIESAccrued experoesNET ASSETSHeld in tut for peroion benefts1,320,697 $ 3,s74,9't62r,277,39087,66424,60624,37s,425t,231,57523,819,624I 01,88739,54453,428,004t,23r,57545,097,0r4I 89,55164,150- |,977 1,97752,698,51 8 50,888,729 103,587,247$ 6,903 S 2,049 $ 8,952$ 52.691.615 $ 50.886.680 $ 103.578.295A-61 Village of Glenviey IllinoisNotes to Fimrcial StatementsDecember 31. 2011Village of Glenview, IllinoisNotes to Fimrciâl StaterentsDecembe¡ 31. 201 1NOTE M - FIA{D BALANCE REPORTINGAs defwd in Note A-4, the Village had the followiag comporenh of fund balarce in the Geæml fud at December 3I,20tr:Gene¡al FundNOTE L . PENSION TRUST FLTNDS - FINANCIAL DATA (Continæd)zFirefighters'PemionFu¡ds r,767,986 $ 2,806,961 $ 4,s74,947654,408 680,302 1,334,7t02,422,394 3,487,263 s,909,657PolicePemionFu¡dTotalPemionTrstFundsNoropendable fud balarcePrepaid itemInYentory$ 13,600117,824AdditiomC oDtrib utioNEmployerParticipantTotal conributioroInvestrent ircomeNet appræiation iDfai¡ value of investnentsInterest incomLess iÃvesturcnt expeseNet hvestreDt ircomeTotal adötioNDedwtioroRetirement peroiomWidow pemioroDisability peroioroCont¡ibution ¡efudsToøl deductiomChaDge i¡ mt asseßNet asseß held iD t¡6t for peNion benefitsBegimingEndine|,349,699789,681(7 4,828)2,064,5524,486,9462,050,2t524t,60347,56s29,6773,402,707251,00146t,638s,4s2,922492,604509,20329,6775,41 0 1,355,1 09725,667 1,515,348o3o,443) (20s,27t)Total DoNpendable$ 131,424NOTE N. CONTINGENCIESI GrantsAmouts received o¡ receivable from grantor agercies are subict to audil and adjEttrnt by grantor ageûcies,prircipally the fede¡al goremnt Aay disallowed claim, ircluding amuß already collected, roy corottute aliabi.lity of the applicable fuds. The amom! if auy, of expenditues which my be disallowed by t¡e grantor camotbe detemired at this tim The Village believes srch amou6, if auy, to be imfÉrial2 LitieationThe Village bas seve¡al pending legal proceedings that, h the opiaion of mmgemeDt, are ordiEry routiE mtteEimideDtal to the m¡ml bwimss co¡drcted by tbe Village In the opinion of mmgeæn! the outcore is reitherprobable mr estimble, aud the ultimte dispositiom of such proceediags are not expected to have a mterial adveßeeffect on the Village's ret asseb o¡ activitiesNOTE O - SI,tsSEOIJENT EVENTMamgerent has ewluted subsequent evenß through Jue 14, 2012, the date these fmrcial stateænts were awilabl€ tobe issued MamgemDt bas detemircd m eveD8 or taßactios have occued subsequent to the balarce sheet date th¿trequire disclos ue il the fmrcial stat€ænß, otler than tlpse described fu¡Îhe¡ below.Qn May 22,2012, the Village board approved an ordimrce providing for the issurce of $18,090,000 Gereral ObligationRefuding Bonds, Se¡ies 2012.A. These bonds will be issued by the Village in lw 2012600,634 2,665,1864,087,897 8,574,8432,369,060 4,115,346 6,484,4062,It't,886 (27,449) 2.090,43750,573,729 50,914,129 101,487,858$ s2.691.615 $ 50.886.680 $ r03.s78.295A-62 Village of Glenview, IllinoisPostemployment Benefi t PlansSchedules of Fundiug ProgressRequired Supplemeutary Info¡mtion (UËudited)December 31. 201 1Village of Glenvieq IllinoisPostemployment Benefit PlansSchedr:les of Fuding Progress (Contiaued)Required Supplementary Infomtion (Umudited)December 31. 201 IActua¡ialValutionDateatDecembe¡ 31ActuriâlActuarial Accræd U¡fundedValue of Liability (AA!) AALAssets EntyAge (UAAL)0) Q) (2) - (t)Illinois Municip¡l Retirement Fund(r) t (2)(r) t (z)Fu¡dedRatioActiveMembers'Cove¡edPayoll13)I 5,430,1 97I 5,393,325t5,640,203I 6,344,000l 6,761,5801s,776,2376,603,5096,31 0,5206,584,9505,853,0465,591,8t 05,31 1,5507,195,1627,049,3746,s89,2'766,550,5956,1 84,5485,861,889UAALæ aPercentâgeofCove¡edPayoll((z-r\13)ActudâlValuationDateatDecembe¡ 3l20t1201 0+200920082007FuudedRatioActiveMembe¡s'Cove¡edPayroll(3)29,228,86726,967,O70NANA24,9tt,602UAAL as aPercentâgeofCove¡edPayoll((2-r)13)Actua¡ialActudal Accrued U¡fu¡dedValw of Liability (AAL) AALAssets EDt¡yAge (UAAL)(l) (2) (2) - (r )Other postemploymmt benefit plan201120102009200820072006$ 25,605,004 $25,0I6,54922,392,29911,094,53432,02t,O9535,302.566$ 53,788,060 S49.768,62546,437,5394r,723,97938,840,39736,5t5,44157,t76,567 $54,396,08252,055,I4448,536,29247,854,28746,420,3884r,ó68,646 $40,760,60337,I87,80733,81 4,1 8739,682,34939,555,25459.435.239 $58,424,45355,244,84847,51 0,34845,524,89r41,086,40175,563,246 $73,324,30268,781,88765,958,6746t,763,24358,999,1 0716,063,642r5,744,054r4,'795,50816,719,6s3'Ì,661,2544,252,688I 8,386,67918,928,220L6,8t6,743t7,422,3821 3,908,956r2,578,7r9$ 9.556.094 $8,695,6688,695,668NAI 2.391.0009,556,0948,695,6688,695,668NA1 2,391,0006t 4561.3760 2t50.5580.6989 2575 6774 1975 5873 5977 4878 68%s%$32.7ïyo3225%NANA49 74y.%st04tl y"1022894 60102 3045 7l26.968552 %L37 T1r33'7598 86I I 9.5486 06255 54 yo268 5t255 2r265.97224902I4 58$ODamrketwluebasis,theactu¡ialvalue of assetsasof December3l,20ll is$23,602,691 Onam¡ketbæis,thefu¡ded ¡atio wor¡ld be 56 64%Police Pension FundNAThe Village imFlerented GASB Stateænt No 45 fo¡ the flscal year ended Decembe¡ 31, 2007 lDfomtion for prioryeare is not awilable* Resulb from prior year-2010*200920082001200620055,647,1798,655,8288,807,3095,786.3696,684,4944,570,95490 5085.1884 0687.8285 3288 87Firefighters' Pension Fund201 0*20092008200720062005* Most receDt actu¡ial valution date(Conti¡ued)(Corcluded)A-63 Village of Glenvieu lllinoisPolice Pension FuudS chedrle of Employe¡ ContibutioroRequired S uppleæntary I¡fomtion (UMudited)Decembe¡ 3l . 20I IEnplo)€rAuulRequiredC ont¡ibutioreIARCIC ontributiomVillage of Glenview, IllinoisFirefighters' Pension FudS chedule of Employer ContibutiomRequired S upplerentary lDfomtion (Umudited)Dccember 31. 201 ICaleuda¡Yea¡Ptrce[tageContributedCalendarYearEmploprCon¡ibutioroAmulRequiredCo¡ÈibutiorofAR'ìPercentageContributcd201 I20t02009200820072006s|,767,9861,802,6291,168,933t,393,6281,1s7,437930,687r347,5871,370,885933,477I,081,786918,552940,502131.20 %t3t.49tzs 22128 83t26 0098.96$s201120102009200820072006$2,806,96t $2,54r,8701,985,8711,805,0261,416,463I,08I,7382.160.105 $I,941,0601,987,s48I,712,540,,556,654904808t29.95 %I03.9599.92105.4090.99I I 9.ssA-64 Village of Glenvieq lllinoistrlinois Municipal Retirement f,'undS cbsdule of Employer ContributiomRequired Supplementary Infomtion (Umudited)December 31. 201 ICale¡d¿¡YearEmployerC ontributiomAmulRequiredContibutiomIARCIPerceDtageContributed201120to2009200820072006$2,073,818 $1,988,8181,822,3781,619,690t,7t8,0621,6t8,6422,073,818 $1,988,8181,822,378I,619,6901,7t8,0621,6t8,642100 00 %I 00.00I 00.00100 00100.001 00_00A-65 B-1 APPENDIX B FORM OF LEGAL OPINION PROPOSED FORM OF OPINION OF BOND COUNSEL [LETTERHEAD OF CHAPMAN AND CUTLER LLP] [TO BE DATED CLOSING DATE] We hereby certify that we have examined certified copy of the proceedings (the “Proceedings”) of the President and Board of Trustees of the Village of Glenview, Cook County, Illinois (the “Village”), passed preliminary to the issue by the Village of its fully registered General Obligation Refunding Bonds, Series 2012B (the “Bonds”) to the amount of $__________, dated the date hereof, of the denomination of $5,000 or authorized integral multiples thereof, and due [serially] on December 1 of the years and in the amounts and bearing interest at the rates percent per annum as follows: YEAR AMOUNT ($) RATE (%) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Each Bond bears interest from the later of the dated date as stated above or from the most recent interest payment date to which interest has been paid or duly provided for, until the principal amount of each Bond, respectively, is paid or duly provided for, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being payable on June 1 and December 1 of each year, commencing on June 1, 2013. [The Bonds coming due on December 1 of the year 20__, are subject to mandatory redemption prior to maturity at a price of par, without premium, plus accrued interest to the date fixed for redemption, on December 1 of the years and in the amounts as follows: B-2 FOR THE 20__ TERM BOND: YEAR AMOUNT ($) 20__ 20__ (stated maturity)] The Bonds coming due on December 1, 2023, and thereafter are subject to redemption prior to maturity at the option of the Village, from any available moneys, on December 1, 2022, and any date thereafter, in whole or in part, and if in part in such principal amounts and from such maturities as determined by the Village and within any maturity by lot, at a redemption price of par plus accrued interest to the date fixed for redemption. The Bonds have been issued generally for the purpose of refunding certain outstanding General Obligation Bonds, Series 2004B, of the Village. From such examination, we are of the opinion that the Proceedings show lawful authority for the issuance of the Bonds under the laws of the State of Illinois now in force. We further certify that we have examined the form of Bond prescribed and find the same in due form of law, and in our opinion the Bonds, to the amount named, are valid and legally binding obligations of the Village, and all taxable property in the Village is subject to the levy of taxes to pay the same without limitation as to rate or amount, except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. It is our opinion that, subject to the Village’s compliance with certain covenants, 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 alternative minimum tax for individuals and corporations under the Internal Revenue Code of 1986, as amended, but is taken into account in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. Failure to comply with certain of such Village covenants could cause interest on the Bonds to be includible in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds. Ownership of the Bonds may result in other federal tax consequences to certain taxpayers, and we express no opinion regarding any such collateral consequences arising with respect to the Bonds. In rendering our opinion on tax exemption, we have relied on the mathematical computation of the yield on the Bonds and the yield on certain investments by Barthe & Wahrman, Bloomington, Minnesota, Certified Public Accountants. We express no opinion herein as to the accuracy, adequacy or completeness of the Official Statement relating to the Bonds. B-3 In rendering this opinion, we have relied upon certifications of the Village with respect to certain material facts within the Village’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. C-1 APPENDIX C BOOK-ENTRY-ONLY SYSTEM 1. The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for the securities (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. [If, however, the aggregate principal amount of [any] issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount, and an additional certificate will be issued with respect to any remaining principal amount of such issue.] 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 and www.dtc.org. 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. C-2 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 Village 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 Village or 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, Agent, or the Village, 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 Village or 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 [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 [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 [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 Village or 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 Village 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 Village believes to be reliable, but the Village takes no responsibility for the accuracy thereof. D-1 APPENDIX D FORM OF CONTINUING DISCLOSURE UNDERTAKING CONTINUING DISCLOSURE UNDERTAKING FOR THE PURPOSE OF PROVIDING CONTINUING DISCLOSURE INFORMATION UNDER SECTION (b)(5) OF RULE 15c2-12 This Continuing Disclosure Undertaking (the “Agreement”) is executed and delivered by Village of Glenview, Cook County, Illinois (the “Village”) in connection with the issuance of $__________ General Obligation Refunding Bonds, Series 2012B (the “Bonds”). The Bonds are being issued pursuant to an Ordinance, numbered _____, as adopted by the President and Board of Trustees of the Village on November 13, 2012, as supplemented by the 2012B Bond Order and Notification of Sale (the “Ordinance”). In consideration of the issuance of the Bonds by the Village and the purchase of such Bonds by the beneficial owners thereof, the Village covenants and agrees as follows: 1. PURPOSE OF THIS AGREEMENT. This Agreement is executed and delivered by the Village as of the date set forth below, for the benefit of the beneficial owners of the Bonds and in order to assist the Participating Underwriters in complying with the requirements of the Rule (as defined below). The Village represents that it will be the only obligated person with respect to the Bonds at the time the Bonds are delivered to the Participating Underwriters and that no other person is expected to become so committed at any time after issuance of the Bonds. 2. DEFINITIONS. The terms set forth below shall have the following meanings in this Agreement, unless the context clearly otherwise requires. Annual Financial Information means the financial information and operating data described in Exhibit I. Annual Financial Information Disclosure means the dissemination of disclosure concerning Annual Financial Information and the dissemination of the Audited Financial Statements as set forth in Section 4. Audited Financial Statements means the audited financial statements of the Village prepared pursuant to the standards and as described in Exhibit I. Commission means the Securities and Exchange Commission. Dissemination Agent means any agent designated as such in writing by the Village and which has filed with the Village a written acceptance of such designation, and such agent’s successors and assigns. D-2 EMMA means the MSRB through its Electronic Municipal Market Access system for municipal securities disclosure or through any other electronic format or system prescribed by the MSRB for purposes of the Rule. Exchange Act means the Securities Exchange Act of 1934, as amended. MSRB means the Municipal Securities Rulemaking Board. Participating Underwriter means each broker, dealer or municipal securities dealer acting as an underwriter in the primary offering of the Bonds. Reportable Event means the occurrence of any of the Events with respect to the Bonds set forth in Exhibit II. Reportable Events Disclosure means dissemination of a notice of a Reportable Event as set forth in Section 5. Rule means Rule 15c2-12 adopted by the Commission under the Exchange Act, as the same may be amended from time to time. State means the State of Illinois. Undertaking means the obligations of the Village pursuant to Sections 4 and 5. 3. CUSIP NUMBER/FINAL OFFICIAL STATEMENT. The CUSIP Numbers of the Bonds as set forth in Exhibit III. The Final Official Statement relating to the Bonds is dated November 29, 2012 (the “Final Official Statement”). The Village will include the CUSIP Number in all disclosure described in Sections 4 and 5 of this Agreement. 4. ANNUAL FINANCIAL INFORMATION DISCLOSURE. Subject to Section 8 of this Agreement, the Village hereby covenants that it will disseminate its Annual Financial Information and its Audited Financial Statements (in the form and by the dates set forth in Exhibit I) to EMMA 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 and by such time so that such entities receive the information by the dates specified. 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. If any part of the Annual Financial Information can no longer be generated because the operations to which it is related have been materially changed or discontinued, the Village will disseminate a statement to such effect as part of its Annual Financial Information for the year in which such event first occurs. If any amendment or waiver is made to this Agreement, the Annual Financial Information for the year in which such amendment or waiver is made (or in any notice or supplement D-3 provided to EMMA) shall contain a narrative description of the reasons for such amendment or waiver and its impact on the type of information being provided. 5. REPORTABLE EVENTS DISCLOSURE. Subject to Section 8 of this Agreement, the Village hereby 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 EMMA 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. Notwithstanding the foregoing, notice of optional or unscheduled redemption of any Bonds or defeasance of any Bonds need not be given under this Agreement any earlier than the notice (if any) of such redemption or defeasance is given to the Bondholders pursuant to the Ordinance. 6. CONSEQUENCES OF FAILURE OF THE VILLAGE TO PROVIDE INFORMATION. The Village shall give notice in a timely manner to EMMA of any failure to provide Annual Financial Information Disclosure when the same is due hereunder. In the event of a failure of the Village to comply with any provision of this Agreement, the beneficial owner of any Bond may seek mandamus or specific performance by court order, to cause the Village to comply with its obligations under this Agreement. The beneficial owners of 25% or more in principal amount of the Bonds outstanding may challenge the adequacy of the information provided under this Agreement and seek specific performance by court order to cause the Village to provide the information as required by this Agreement. A default under this Agreement shall not be deemed a default under the Ordinance, and the sole remedy under this Agreement in the event of any failure of the Village to comply with this Agreement shall be an action to compel performance. 7. AMENDMENTS; WAIVER. Notwithstanding any other provision of this Agreement, the Village by ordinance authorizing such amendment or waiver, may amend this Agreement, and any provision of this Agreement may be waived, if: (a) (i) The amendment or 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 Village, or type of business conducted; or (ii) This Agreement, 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 either by parties unaffiliated with the Village (such as the Bond Counsel). D-4 In the event that the Commission or the MSRB or other regulatory authority shall approve or require Annual Financial Information Disclosure or Reportable Events Disclosure to be made to a central post office, governmental agency or similar entity other than EMMA or in lieu of EMMA, the Village shall, if required, make such dissemination to such central post office, governmental agency or similar entity without the necessity of amending this Agreement. 8. TERMINATION OF UNDERTAKING. The Undertaking of the Village shall be terminated hereunder if the Village shall no longer have any legal liability for any obligation on or relating to repayment of the Bonds under the Ordinance. The Village shall give notice to EMMA in a timely manner if this Section is applicable. 9. DISSEMINATION AGENT. The Village may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. 10. ADDITIONAL INFORMATION. Nothing in this Agreement shall be deemed to prevent the Village from disseminating any other information, using the means of dissemination set forth in this Agreement or any other means of communication, or including any other information in any Annual Financial Information Disclosure or notice of occurrence of a Reportable Event, in addition to that which is required by this Agreement. If the Village 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 this Agreement, the Village shall have no obligation under this Agreement to update such information or include it in any future disclosure or notice of occurrence of a Reportable Event. If the Village is changed, the Village shall disseminate such information to EMMA. 11. BENEFICIARIES. This Agreement has been executed in order to assist the Participating Underwriters in complying with the Rule; however, this Agreement shall inure solely to the benefit of the Village, the Dissemination Agent, if any, and the beneficial owners of the Bonds, and shall create no rights in any other person or entity. 12. RECORDKEEPING. The Village shall maintain records of all Annual Financial Information Disclosure and Reportable Events Disclosure, including the content of such disclosure, the names of the entities with whom such disclosure was filed and the date of filing such disclosure. 13. ASSIGNMENT. The Village shall not transfer its obligations under the Ordinance unless the transferee agrees to assume all obligations of the Village under this Agreement or to execute an Undertaking under the Rule. D-5 14. GOVERNING LAW. This Agreement shall be governed by the laws of the State. VILLAGE OF GLENVIEW COOK COUNTY, ILLINOIS ______________________________________ By: Todd Hileman Its: Village Manager/Treasurer/Clerk Address: 1225 Waukegan Road Glenview, Illinois 60025 Date: December 18, 2012 EXHIBIT I D-6 EXHIBIT I ANNUAL FINANCIAL INFORMATION AND TIMING AND AUDITED FINANCIAL STATEMENTS “Annual Financial Information” means financial information and operating data of the type contained in the Official Statement under the following captions: TREND OF VALUATIONS LARGER TAXPAYERS STATEMENT OF INDEBTEDNESS SCHEDULE OF BONDED INDEBTEDNESS OVERLAPPING DEBT TAX LEVIES, COLLECTIONS AND TAX RATES SUMMARY FINANCIAL INFORMATION RETAIL ACTIVITY All or a portion of the Annual Financial Information and the Audited Financial Statements as set forth below may be included by reference to other documents which have been submitted to EMMA or filed with the Commission. If the information included by reference is contained in a Final Official Statement, the Final Official Statement must be available on EMMA; the Final Official Statement need not be available from the Commission. The Village shall clearly identify each such item of information included by reference. Annual Financial Information exclusive of Audited Financial Statements will be submitted to EMMA by 210 days after the last day of the Village’s fiscal year. Audited Financial Statements as described below should be filed at the same time as the Annual Financial Information. If Audited Financial Statements are not available when the Annual Financial Information is filed, unaudited financial statements shall be included. Audited Financial Statements will be prepared according to Generally Accepted Accounting Principles as applicable to governmental units (i.e., as subject to the pronouncements of the Governmental Standards Accounting Board and subject to any express requirements of State law). Audited Financial Statements will be submitted to EMMA within 30 days after availability to Village. If any change is made to the Annual Financial Information as permitted by Section 4 of the Agreement, the Village will disseminate a notice of such change as required by Section 4. EXHIBIT II D-7 EXHIBIT II EVENTS WITH RESPECT TO THE BONDS FOR WHICH REPORTABLE EVENTS DISCLOSURE IS REQUIRED 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 Village 13. The consummation of a merger, consolidation, or acquisition involving the Village or the sale of all or substantially all of the assets of the Village, 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 NOTE: DO NOT DELETE ANY EVENT, EVEN IF IT IS INAPPLICABLE TO YOUR TRANSACTION.  This event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the Issuer 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 Village, 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 Issuer. EXHIBIT III D-8 EXHIBIT III CUSIP NUMBERS BASE NUMBER IS 378892 YEAR SUFFIX 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 E-1 APPENDIX E NOTICE OF SALE $17,020,000* GENERAL OBLIGATION REFUNDING BONDS, SERIES 2012B VILLAGE OF GLENVIEW, COOK COUNTY, ILLINOIS Bids for the purchase of $17,020,000* General Obligation Refunding Bonds, Series 2012B (the "Bonds") of the Village of Glenview, Cook County, Illinois (the "Village") will be received at the offices of Ehlers & Associates, Inc. ("Ehlers"), 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, Financial Advisors to the Village, until 10:00 A.M., Central Time, and ELECTRONIC PROPOSALS will be received via PARITY, in the manner described below, until 10:00 A.M. Central Time, on November 29, 2012, at which time they will be opened, read and tabulated. The bids will be presented to the designated officials approved by the Board of Trustees for consideration for award on the same date. The bid offering to purchase the Bonds upon the terms specified herein and most favorable to the Village will be accepted unless all bids are rejected. * Preliminary, subject to change. PURPOSE Proceeds of the Bonds will be used to refund certain general obligation bonds of the Village and to pay the costs of issuing the Bonds. DATES AND MATURITIES The Bonds will be dated December 18, 2012, will be issued as fully registered Bonds in the denomination of $5,000 each, or any integral multiple thereof, and will mature on December 1 as follows: Year Amount* Year Amount* Year Amount* 2013 $275,000 2017 $1,565,000 2021 $1,680,000 2014 265,000 2018 1,600,000 2022 1,715,000 2015 1,540,000 2019 1,610,000 2023 1,770,000 2016 1,555,000 2020 1,645,000 2024 1,800,000 ADJUSTMENT OPTION * The Village reserves the right to increase or decrease the amount of any individual maturity of the Bonds in increments of $5,000 on the day of sale. If individual maturities are increased or decreased, the purchase price proposed will be adjusted to maintain the same gross spread per $1,000. TERM BOND OPTION Bids for the Bonds may contain a maturity schedule providing for any combination of serial bonds and term bonds, subject to mandatory redemption, so long as the amount of principal maturing or subject to mandatory redemption in each year conforms to the maturity schedule set forth above. All dates are inclusive. E-2 INTEREST PAYMENT DATES AND RATES Interest will be payable on June 1 and December 1 of each year, commencing June 1, 2013, to the registered owners of the Bonds appearing of record in the bond register as of the close of business on the 15th day (whether or not a business day) of the immediately preceding month. Interest will be computed upon the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. All Bonds of the same maturity must bear interest from date of issue until paid at a single, uniform rate, not exceeding the rate specified for Bonds of any subsequent maturity. Each rate must be expressed in an integral multiple of 5/100 or 1/8 of 1%. The rate for any maturity may not be more than 1.00% less than the rate for any preceding maturity. (For example, if a rate of 3.00% is proposed for the 2013 maturity, then the lowest rate that may be proposed for any later maturity is 2.00%). The rate or rates named shall not exceed 4.00%. BOOK-ENTRY-ONLY FORMAT Unless otherwise specified by the purchaser, the Bonds will be designated in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC"). DTC will act as securities depository for the Bonds, and will be responsible for maintaining a book-entry system for recording the interests of its participants and the transfers of interests between its participants. The participants will be responsible for maintaining records regarding the beneficial interests of the individual purchasers of the Bonds. So long as Cede & Co. is the registered owner of the Bonds, all payments of principal and interest will be made to the depository which, in turn, will be obligated to remit such payments to its participants for subsequent disbursement to the beneficial owners of the Bonds. PAYING AGENT The Village has selected Wells Fargo Bank, National Association, Chicago, Illinois, to act as bond registrar and paying agent (the "Paying Agent"). The Village will pay the charges for Paying Agent services. The Village reserves the right to remove the Paying Agent and to appoint a successor. OPTIONAL REDEMPTION At the option of the Village, Bonds maturing on or after December 1, 2023 shall be subject to redemption prior to maturity on December 1, 2022 and on any date thereafter, at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to redemption. If redemption is in part, the selection of the amounts and maturities of the Bonds to be redeemed shall be at the discretion of the Village. If only part of the Bonds having a common maturity date are called for redemption, the Bond Registrar will notify DTC of the particular amount of such maturity to be redeemed. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interest in such maturity to be redeemed. Notice of such call shall be given by mailing a notice not more than 60 days and not less than 30 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the registration books. Unless moneys sufficient to pay the redemption price of the Bonds to be redeemed are received by the Paying Agent prior to the giving of a notice of redemption, such notice may, at the option of the Village, state that said redemption will be conditional upon the receipt of such moneys by the Paying Agent on or prior to the date fixed for redemption. If such moneys are not received, such notice will be of no force and effect, the Village will not redeem such Bonds, and the Bond Registrar will give notice, in the same manner in which the notice of redemption has been given, that such moneys were not so received and that such Bonds will not be redeemed. Otherwise, prior to any redemption E-3 date, the Village will deposit with the Paying Agent an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on the date. Subject to the provisions for a conditional redemption described above, notice of redemption having been given and described above and in the Bond Ordinance, the Bonds or portions of Bonds so to be redeemed will, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the Village shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds will be paid by the Paying Agent at the redemption price. DELIVERY On or about December 18, 2012, the Bonds will be delivered without cost to the winning bidder at DTC. On the day of closing, the Village will furnish to the winning bidder the opinion of bond counsel hereinafter described, an arbitrage certification, and certificates verifying that no litigation in any manner questioning the validity of the Bonds is then pending or, to the best knowledge of officers of the Village, threatened. Payment for the Bonds must be received by the Village at its designated depository on the date of closing in immediately available funds. LEGAL OPINION An opinion as to the validity of the Bonds and the exemption from federal taxation of the interest thereon will be furnished by Chapman and Cutler LLP, Chicago, Illinois, bond counsel to the Village, and will accompany the Bonds. The legal opinion will state that the Bonds, to the amount named, are valid and legally binding obligations of the Village, and all taxable property in the Village is subject to the levy of taxes to pay the same without limitation as to rate or amount, except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. SUBMISSION OF BIDS Bids must not be for less than $16,849,800 plus accrued interest on the principal sum of $17,020,000 from date of original issue of the Bonds to date of delivery. A signed bid form must be submitted to Ehlers prior to the time established above for the opening of bids as follows: 1) In a sealed envelope as described herein; or 2) A facsimile submission to Ehlers, Facsimile Number (651) 697-8555; or 3) Electronically via PARITY in accordance with this Notice of Sale until 10:00 A.M. Central Time, but no bid will be received after the time for receiving bids specified above. To the extent any instructions or directions set forth in PARITY conflict with this Notice of Sale, the terms of this Notice of Sale shall control. For further information about PARITY, potential bidders may contact Ehlers or i-Deal LLC at 1359 Broadway, 2nd Floor, New York, New York 10018, Telephone (212) 849-5021. Bids must be submitted to Ehlers via one of the methods described above and must be received prior to the time established above for the opening of bids. Each bid must be unconditional except as to legality. Neither the Village nor Ehlers shall be responsible for any failure to receive a facsimile submission. A good faith deposit (the "Deposit") in the amount of $340,400, complying with the provisions below, must be submitted with each bid. The Deposit must be in the form of a certified or cashier's check, or a financial surety bond or a wire transfer of funds to KleinBank, 1550 Audubon Road, Chaska, Minnesota, ABA No. 091915654 for E-4 credit: Ehlers & Associates Good Faith Account No. 3208138. The Deposit will be retained by the Village as liquidated damages if the bid is accepted and the bidder fails to comply therewith. The Deposit will be returned to the winning bidder at the closing for the Bonds. The Deposit, payable to the Village, shall be retained in the offices of Ehlers with the same effect as if delivered to the Village. Alternatively, bidders may wire the Deposit to KleinBank, 1550 Audubon Road, Chaska, Minnesota, ABA No. 091915654 for credit: Ehlers & Associates Good Faith Account No. 3208138. The Village and any bidder who chooses to so wire the Deposit hereby agree irrevocably that Ehlers shall be the escrow holder of the Deposit wired to such account subject only to these conditions and duties: 1) All income earned thereon shall be retained by the escrow holder as payment for its expenses; 2) If the bid is not accepted, Ehlers shall, at its expense, promptly return the Deposit amount to the losing bidder; 3) If the bid is accepted, the Deposit shall be returned to the winning bidder at the closing; 4) Ehlers shall bear all costs of maintaining the escrow account and returning the funds to the bidder; 5) Ehlers shall not be an insurer of the Deposit amount and shall have no liability hereunder except if it willfully fails to perform, or recklessly disregards, its duties specified herein; and 6) FDIC insurance on deposits within the escrow account shall be limited to $250,000 per bidder. If a financial surety bond is used, it must be from an insurance company licensed to issue such a bond in the State of Illinois, and preapproved by the Village. Such bond must be submitted to Ehlers prior to the opening of the bids. Such 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 bidder is required to submit its Deposit to Ehlers in the form of a certified or cashier's check or wire transfer as instructed by Ehlers not later than 3:00 P.M., Central Time, 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 Village to satisfy the Deposit requirement. The amount securing the successful bid will be retained as liquidated damages if the bid is accepted and the bidder fails to comply therewith. No bid can be withdrawn after the time set for receiving bids unless the meeting of the Village scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. By submitting a bid, any bidder makes the representation that it understands Bond Counsel represents the Village in the Bond transaction and, if such bidder has retained Bond Counsel in an unrelated matter, such bidder consents to and waives any conflict of interest arising from any adverse position to the Village 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. AWARD The Bonds will be awarded to the bidder offering the lowest interest rate to be determined on a True Interest Cost (TIC) basis. The Village’s computation of the interest rate of each bid, in accordance with customary practice, will be controlling. In the event of a tie, the sale of the Bonds will be awarded by lot. The Village reserves the right to reject any and all bids and to waive any informality in any bid. BOND INSURANCE If the Bonds are qualified for any bond insurance policy, the purchase of such policy shall be at the sole option and expense of the winning bidder. Any cost for such insurance policy is to be paid by the winning bidder, except that, if the Village requested and received a rating on the Bonds from a rating agency, the Village will pay that rating fee. Any rating agency fees not requested by the Village are the responsibility of the winning bidder. Failure of the municipal bond insurer to issue the policy after the Bonds are awarded to the winning bidder shall not constitute cause for failure or refusal by the winning bidder to accept delivery of the Bonds. E-5 CUSIP NUMBERS The Village will assume no obligation for the assignment or printing of CUSIP numbers on the Bonds or for the correctness of any numbers printed thereon, but will permit such numbers to be printed at the expense of the winning bidder, if the winning bidder waives any delay in delivery occasioned thereby. NON-QUALIFIED TAX-EXEMPT OBLIGATIONS The Village will not designate the Bonds as qualified tax-exempt obligations for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. CONTINUING DISCLOSURE In order to assist the Underwriters in complying with the provisions of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 the Village will enter into an undertaking (the "Undertaking") for the benefit of the holders of the Bonds. A description of the details and terms of the Undertaking is set forth in the Preliminary Official Statement. There have been no instances in the previous five years in which the Village has failed to comply, in all material respects, with any undertaking previously entered into by it pursuant to the Rule. INFORMATION FROM WINNING BIDDER The successful purchaser will be required to provide, in a timely manner, certain information relating to the initial offering prices of the Bonds necessary to compute the yield on the Bonds pursuant to the provisions of the Internal Revenue Code of 1986, as amended. PRELIMINARY OFFICIAL STATEMENT Bidders may obtain a copy of the Preliminary Official Statement relating to the Bonds prior to the bid opening by request from Ehlers at www.ehlers-inc.com by connecting to the link to the Bond Sales. The Syndicate Manager will be provided with an electronic copy and up to 10 printed copies upon request of the Final Official Statement within seven business days of the bid acceptance. Additional copies of the Final Official Statement will be available at a cost of $10.00 per copy. Information for bidders and bid forms may be obtained from Ehlers at 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105, Telephone (651) 697-8500. By Order of the Board of Trustees Todd Hileman, Village Manager, Village Clerk and Village Treasurer Village of Glenview, Cook County, Illinois