FY2016 TIF Report - Naperville
Transcript of FY2016 TIF Report - Naperville
SECTION 2 [Sections 2 through 5 must be completed for each redevelopment project area listed in Section 1.]
FY 2016
Name of Redevelopment Project Area:
Primary Use of Redevelopment Project Area*:
If "Combination/Mixed" List Component Types:
No Yes
Were there any amendments to the redevelopment plan, the redevelopment project area, or the State
Sales Tax Boundary? [65 ILCS 5/11‐74.4‐5 (d) (1) and 5/11‐74.6‐22 (d) (1)]If yes, please enclose the amendment labeled Attachment A X
Certification of the Chief Executive Officer of the municipality that the municipality has complied with all
of the requirements of the Act during the preceding fiscal year. [65 ILCS 5/11‐74.4‐5 (d) (3) and 5/11‐74.6‐
22 (d) (3)]Please enclose the CEO Certification labeled Attachment B X
Opinion of legal counsel that municipality is in compliance with the Act. [65 ILCS 5/11‐74.4‐5 (d) (4) and
5/11‐74.6‐22 (d) (4)]Please enclose the Legal Counsel Opinion labeled Attachment C X
Were there any activities undertaken in furtherance of the objectives of the redevelopment plan,
including any project implemented in the preceding fiscal year and a description of the activities
undertaken? [65 ILCS 5/11‐74.4‐5 (d) (7) (A and B) and 5/11‐74.6‐22 (d) (7) (A and B)]If yes, please enclose the Activities Statement labeled Attachment D
X
Were any agreements entered into by the municipality with regard to the disposition or redevelopment
of any property within the redevelopment project area or the area within the State Sales Tax Boundary?
[65 ILCS 5/11‐74.4‐5 (d) (7) (C) and 5/11‐74.6‐22 (d) (7) (C)]If yes, please enclose the Agreement(s) labeled Attachment E X
Is there additional information on the use of all funds received under this Division and steps taken by the
municipality to achieve the objectives of the redevelopment plan? [65 ILCS 5/11‐74.4‐5 (d) (7) (D) and
5/11‐74.6‐22 (d) (7) (D)]If yes, please enclose the Additional Information labeled Attachment F X
Did the municipality's TIF advisors or consultants enter into contracts with entities or persons that have
received or are receiving payments financed by tax increment revenues produced by the same TIF? [65
ILCS 5/11‐74.4‐5 (d) (7) (E) and 5/11‐74.6‐22 (d) (7) (E)]If yes, please enclose the contract(s) or description of the contract(s) labeled Attachment G X
Were there any reports or meeting minutes submitted to the municipality by the joint review board? [65
ILCS 5/11‐74.4‐5 (d) (7) (F) and 5/11‐74.6‐22 (d) (7) (F)]If yes, please enclose the Joint Review Board Report labeled Attachment H X
Were any obligations issued by municipality? [65 ILCS 5/11‐74.4‐5 (d) (8) (A) and
5/11‐74.6‐22 (d) (8) (A)]If yes, please enclose the Official Statement labeled Attachment I X
Was analysis prepared by a financial advisor or underwriter setting forth the nature and term of
obligation and projected debt service including required reserves and debt coverage? [65 ILCS 5/11‐74.4‐
5 (d) (8) (B) and 5/11‐74.6‐22 (d) (8) (B)]If yes, please enclose the Analysis labeled Attachment J XCumulatively, have deposits from any source equal or greater than $100,000 been made into the specialtax allocation fund? 65 ILCS 5/11-74.4-5 (d) (2) and 5/11-74.6-22 (d) (2)If yes, please enclose Audited financial statements of the special tax allocation fundlabeled Attachment K XCumulatively, have deposits of incremental taxes revenue equal to or greater than $100,000 been madeinto the special tax allocation fund? [65 ILCS 5/11-74.4-5 (d) (9) and 5/11-74.6-22 (d) (9)]If yes, please enclose a certified letter statement reviewing compliance with the Act labeledAttachment L
XA list of all intergovernmental agreements in effect to which the municipality is a part, and an accounting of any money transferred or received by the municipality during that fiscal year pursuant to those intergovernmental agreements. [65 ILCS 5/11-74.4-5 (d) (10)]If yes, please enclose list only, not actual agreements labeled Attachment M X
* Types include: Central Business District, Retail, Other Commercial, Industrial, Residential, and Combination/Mixed.
Water Street TIF District
Combination/Mixed
Retail, Other Commercial
Under which section of the Illinois Municipal Code was Redevelopment Project Area designated? (check one):
Tax Increment Allocation Redevelopment Act __X__ Industrial Jobs Recovery Law _____
FY 2016
Fund Balance at Beginning of Reporting Period 4,136,907$
Revenue/Cash Receipts Deposited in Fund During Reporting FY: Reporting Year Cumulative* % of Total
Property Tax Increment 128,468$ 790,053$ 4%
State Sales Tax Increment 0%
Local Sales Tax Increment 0%
State Utility Tax Increment 0%
Local Utility Tax Increment 0%
Interest 44,694$ 95,608$ 1%
Land/Building Sale Proceeds 0%
Bond Proceeds 6,870,000$ 13,090,000$ 73%
Transfers from Municipal Sources 3,605,653$ 3,605,653$ 20%
Private Sources 0%
Other (Premium on sale of GO Bonds) 473,338$ 473,338$ 3%
Total Amount Deposited in Special Tax Allocation
Fund During Reporting Period 11,122,153$
Cumulative Total Revenues/Cash Receipts 18,054,652$ 100%
Total Expenditures/Cash Disbursements (Carried forward from Section 3.2) 10,097,272$
Distribution of Surplus
Total Expenditures/Disbursements 10,097,272$
NET INCOME/CASH RECEIPTS OVER/(UNDER) CASH DISBURSEMENTS 1,024,881$
FUND BALANCE, END OF REPORTING PERIOD* 5,161,788$
* if there is a positive fund balance at the end of the reporting period, you must complete Section 3.3
SURPLUS*/(DEFICIT)(Carried forward from Section 3.3) (6,163,865)$
SECTION 3.1 - (65 ILCS 5/11-74.4-5 (d) (5) and 65 ILCS 5/11-74.6-22 (d) (5))
Provide an analysis of the special tax allocation fund.
*must be completed where current or prior year(s) have reported funds
TIF NAME: WATER STREET TIF DISTRICT
FY 2016
Amounts Reporting Fiscal Year
1. Costs of studies, administration and professional services—Subsections (q)(1) and (o) (1)
Annual Audit Fee - Sikich 2015 3,410
Annual Audit Fee - Sikich 2016 3,577
6,987$
2. Cost of marketing sites—Subsections (q)(1.6) and (o)(1.6)
-$
Title Services - Chicago Title 2015 443,129
443,129$
-$
Engineering Cost - Carl Walker - 2015 50,711
Construction Costs - 2015 7,315,884
Engineering Cost - Carl Walker - 2016 14,625
Construction Costs - 2016 2,130,026
9,511,246$
-$
3.Property assembly: property acquisition, building demolition, site preparation andenvironmental site improvement costs. Subsections (q)(2), (o)(2) and (o)(3)
4.Costs of rehabilitation, reconstruction, repair or remodeling of existing public or privatebuildings. Subsection (q)(3) and (o)(4)
5. Costs of construction of public works and improvements. Subsection (q)(4) and (o)(5)
6.Costs of removing contaminants required by environmental laws or rules (o)(6) - IndustrialJobs Recovery TIFs ONLY
SECTION 3.2 A- (65 ILCS 5/11-74.4-5 (d) (5) and 65 ILCS 5/11-74.6-22 (d) (5))
Category of Permissible Redevelopment Cost [65 ILCS 5/11-74.4-3 (q) and 65 ILCS 5/11-74.6-10 (o)]
FOR AMOUNTS >$10,000 SECTION 3.2 B MUST BE COMPLETED
ITEMIZED LIST OF ALL EXPENDITURES FROM THE SPECIAL TAX ALLOCATION FUND
(by category of permissible redevelopment cost, amounts expended during reporting period)
TIF NAME: WATER STREET TIF DISTRICT
-$
Debt Service - 2016 94,572
Issuance Costs - 2016 41,338
135,910$
-$
-$
-$
-$
-$
8.Financing costs related to obligations issued by the municipality. Subsection (q) (6) and (o)(8)
7. Cost of job training and retraining, including "welfare to work" programs Subsection (q)(5),(o)(7) and (o)(12)
PAGE 2
SECTION 3.2 A
9. Approved taxing district's capital costs. Subsection (q)(7) and (o)(9)
10. Cost of Reimbursing school districts for their increased costs caused by TIF assistedhousing projects. Subsection (q)(7.5) - Tax Increment Allocation Redevelopment TIFs ONLY
11. Relocation costs. Subsection (q)(8) and (o)(10)
12.Payments in lieu of taxes as defined in Subsections 11-74.43(m) and 11-74.6-10(k).Subsection (q)(9) and (o)(11)
13. Costs of job training, retraining advanced vocational or career education provided by othertaxing bodies. Subsection (q)(10) and (o)(12)
-$
-$
-$
10,097,272$
15. Costs of construction of new housing units for low income and very low-income households.Subsection (q)(11)(F) - Tax Increment Allocation Redevelopment TIFs ONLY
16. Cost of day care services and operational costs of day care centers. Subsection (q) (11.5) -Tax Increment Allocation Redevelopment TIFs ONLY
TOTAL ITEMIZED EXPENDITURES
14. Costs of reimbursing private developers for interest expenses incurred on approvedredevelopment projects. Subsection (q)(11)(A-E) and (o)(13)(A-E)
SECTION 3.2 A
PAGE 3
FY 2016
______ There were no vendors, including other municipal funds, paid in excess of $10,000 during the current reporting period.
Name Service Amount
Chicago Title and Trust Construction Escrow 9,445,910.00$
Chicago Title and Trust Title Services 443,129.00$
Carl Walker Engineering Services 65,336.00$
City of Naperville ‐ Debt Service Fund Principle and Interest 94,571.88$
City of Naperville ‐ Debt Service Fund Bond Issuance Costs 41,337.80$
List all vendors, including other municipal funds, that were paid in excess of $10,000 during the current reporting year.
Section 3.2 B
TIF NAME: WATER STREET TIF DISTRICT
FY 2016
FUND BALANCE, END OF REPORTING PERIOD 5,161,788$
Amount of Original Issuance Amount Designated
1. Description of Debt Obligations
General Obligation 2014 Series 3,605,653$
General Obligation 2016 Series 6,870,000$
Total Amount Designated for Obligations ‐$ 10,475,653$
2. Description of Project Costs to be Paid
Riverwalk 200,000$
Stormwater Detention 550,000$
Water & Webster Street Reconstruction 100,000$
Total Amount Designated for Project Costs 850,000$
TOTAL AMOUNT DESIGNATED 11,325,653$
SURPLUS*/(DEFICIT) (6,163,865)$
* NOTE: If a surplus is calculated, the municipality may be required to repay the amount to overlapping taxing
SECTION 3.3 - (65 ILCS 5/11-74.4-5 (d) (5) 65 ILCS 11-74.6-22 (d) (5))
Breakdown of the Balance in the Special Tax Allocation Fund At the End of the Reporting Period
TIF NAME: WATER STREET TIF DISTRICT
FY 2016
_____ No property was acquired by the Municipality Within the Redevelopment Project Area
Property Acquired by the Municipality Within the Redevelopment Project Area
Property (1):
Street address:
Approximate size or description of property:
Purchase price:
Seller of property:
Property (2):
Street address:
Approximate size or description of property:
Purchase price:
Seller of property:
Property (3):
Street address:
Approximate size or description of property:
Purchase price:
Seller of property:
Property (4):
Street address:
Approximate size or description of property:
Purchase price:
Seller of property:
Provide a description of all property purchased by the municipality during the reporting fiscal year within theredevelopment project area.
SECTION 4 [65 ILCS 5/11-74.4-5 (d) (6) and 65 ILCS 5/11-74.6-22 (d) (6)]
TIF NAME: WATER STREET TIF DISTRICT
FY 2016
Box below must be filled in with either a check or number of projects, not both______
1
TOTAL: 11/1/99 to Date
Estimated Investment for Subsequent Fiscal
YearTotal Estimated to Complete Project
Private Investment Undertaken (See Instructions) 70,929,632$ 9,514,474$ 80,444,106$
Public Investment Undertaken 17,681,278$ 850,000$ 18,531,278$
Ratio of Private/Public Investment 4 1/86 4 15/44
Project 1: *IF PROJECTS ARE LISTED NUMBER MUST BE ENTERED ABOVE
Private Investment Undertaken (See Instructions) 70,929,632$ 9,514,474$ 80,444,106$
Public Investment Undertaken 17,681,278$ 850,000$ 18,531,278$
Ratio of Private/Public Investment 4 1/86 4 15/44
Project 2:
Private Investment Undertaken (See Instructions)
Public Investment Undertaken
Ratio of Private/Public Investment 0 0
Project 3:
Private Investment Undertaken (See Instructions)
Public Investment Undertaken
Ratio of Private/Public Investment 0 0
Project 4:
Private Investment Undertaken (See Instructions)
Public Investment Undertaken
Ratio of Private/Public Investment 0 0
Project 5:
Private Investment Undertaken (See Instructions)
Public Investment Undertaken
Ratio of Private/Public Investment 0 0
Project 6:
Private Investment Undertaken (See Instructions)
Public Investment Undertaken
Ratio of Private/Public Investment 0 0
SECTION 5 - 65 ILCS 5/11-74.4-5 (d) (7) (G) and 65 ILCS 5/11-74.6-22 (d) (7) (G)PAGE 1
*Page 1 is to be included with TIF Report. Pages 2-3 are to be included ONLY if projects are listed.
ENTER total number of projects undertaken by the Municipality Within the Redevelopment Project Area and list them in detail below*.
Check if NO projects were undertaken by the Municipality Within the Redevelopment Project Area:
TIF NAME: WATER STREET TIF DISTRICT
SECTION 6
FY 2016
Provide the base EAV (at the time of designation) and the EAV for the year reported for the redevelopment project areaYear redevelopment
project area was designated Base EAV
Reporting Fiscal Year EAV
2007 1,876,420$ 2,599,120$
SECTION 7
Provide information about job creation and retention
Number of Jobs Retained
Number of Jobs Created
Description and Type (Temporary or
Permanent) of Jobs Total Salaries Paid
156 41
156 Temp Construction;
41 Permanent Hotel &
Retail Jobs $47,595,093
‐$
‐$
‐$
‐$
‐$
‐$
SECTION 8
Provide a general description of the redevelopment project area using only major boundaries:
Optional Documents Enclosed
Legal description of redevelopment project area X
Map of District X
Optional: Information in the following sections is not required by law, but would be helpful in evaluating theperformance of TIF in Illinois. *even though optional MUST be included as part of complete TIF report
List all overlapping tax districts in the redevelopment project area. If overlapping taxing district received a surplus, list the surplus.
__X__ The overlapping taxing districts did not receive a surplus.
Overlapping Taxing DistrictSurplus Distributed from redevelopment
project area to overlapping districts
TIF NAME: WATER STREET TIF DISTRICT
‐$
‐$
‐$
‐$
‐$
‐$
‐$
‐$
‐$
‐$
‐$
‐$
‐$
‐$
‐$
City of Naperville Water Street TIF District Annual Report for Fiscal Year Beginning May 1, 2015 and Ending December 31, 2016
WATER STREET TIF DISTRICT LEGAL DESCRIPTION
LOTS 1, 2, 3, 4, 5, 6, 7 AND 8 IN BLOCK 1, AND LOTS 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 AND THE WEST HALF OF LOT 15 IN BLOCK 4, ALL IN MARTIN’S ADDITION TO NAPERVILLE, BEING A SUBDIVISION OF PART OF THE SOUTHEAST QUARTER OF SECTION 13, TOWNSHIP 38 NORTH, RANGE 9 EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED FEBRUARY 6, 1847 AS DOCUMENT 2584, IN DUPAGE COUNTY, ILLINOIS
TOGETHER WITH ALL OF WATER STREET LYING NORTH OF THE NORTH LINE OF BLOCK 4 AFORESAID, AND ALL OF WEBSTER STREET LYING NORTH OF THE SOUTH RIGHT-OF-WAY LINE OF AURORA AVENUE AND LYING WEST OF BLOCKS 1 AND 4 AFORESAID, AND ALL OF AURORA AVENUE LYING SOUTH OF THE SOUTH LINE OF BLOCK 4 AFORESAID AND LYING WEST OF THE SOUTHERLY EXTENSION OF THE WEST LINE OF THE EAST HALF OF LOT 15 IN BLOCK 4 AFORESAID, AND ALL OF THE PUBLIC ALLEY (FORMERLY PLATTED AS SQUAW LAIN) LYING WITHIN BLOCK 4 AFORESAID LYING WEST OF THE SOUTHERLY EXTENSION OF THE WEST LINE OF LOT 1 IN SAID BLOCK 4, AND ALL OF MAIN STREET LYING NORTH OF THE EASTERLY EXTENSION OF THE NORTH LINE OF BLOCK 4 AFORESAID, AND ALL OF THE DUPAGE RIVER LYING EAST OF THE NORTHERLY EXTENSION OF THE WEST RIGHT-OF-WAY LINE OF SAID WEBSTER STREET AND LYING WEST OF THE NORTHERLY EXTENSION OF THE EAST RIGHT-OF-WAY LINE OF SAID MAIN STREET AND LYING NORTH OF THE NORTH LINE OF BLOCK 1 AFORESAID, ALL IN DUPAGE COUNTY, ILLINOIS.
City of Naperville Water Street TIF District Annual Report for Fiscal Year Beginning May 1, 2015 and Ending December 21, 2016
Attachment B: CEO Certification NAPERVILLEWATER STREET TIF DISTRICTFY2016
Attachment C: Legal Opinion NAPERVILLE WATER STREET TIF DISTRICT FY2016
Attachment D: Activities Undertaken in Furtherance of the Objectives of the Redevelopment Plan NAPERVILLE WATER STREET TIF DISTRICT FY2016
Following site ground breaking as reported in the previous report on April 16, 2015, constructed activities were on-going throughout the reporting period.
Construction activities through the summer of 2015 were focused on demolition, site preparation and utility work.
In accordance with approved development plans, a 5-story parking deck, including 520 parking spaces, was constructed at 120 Water Street, Naperville IL. Construction activities were completed under City Building Permit 14-228. Occupancy of this building was approved on October 12, 2016.
A hotel facility with first floor retail/restaurant spaces was constructed at 120 Water Street, Naperville IL in accordance with City Building Permits 14-232, 14-233, 14-234, 14-235 and 14-236. An Occupancy Permit for the hotel and a first floor restaurant tenant were approved on November of 2016. Vacant first floor retail spaces continued to be occupied as tenants are secured and permits are approved.
Construction was initiated and progressing on a commercial building, known locally as the Loggia Building, including restaurant, banquet, hotel and retail space was constructed at 123 Water Street, Naperville IL in accordance with City Building Permit 14-216. Final occupancy was not approved during the reporting period.
Construction was initiated on a commercial building, known locally as the Theater Building, at 135 Water Street, Naperville IL in accordance with City Building Permit 13-4137.
Attachment F: Use of Funds Received NAPERVILLE WATER STREET TIF DISTRICT FY2016
The City of Naperville received $55,662 in tax increment and interest for the reporting Fiscal Year.
An expenditure of $6,987 was incurred for annual TIF audit fees; $443,129 was incurred to Chicago Title for title services; $65,336 was paid for engineering consulting Services; $9,445,910 was incurred for construction of the public improvements within the district.
The City deposited $6,870,000 in General Obligation Bond proceeds into the TIF Fund.
New Issue
Final Official Statement
Investment Ratings: Standard & Poor's ... AAA (Stable Outlook)
Moody's Investors Service ... Aaa
Subject to compliance by the City with certain covenants, in the opinion of Katten Muchin Rosenman 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. Interest on the Bonds is not exempt from present State of Illinois income taxes. See "TAX EXEMPTION" herein for a more complete discussion.
B Naperville
CITY OF NAPERVILLE
DuPage and Will Counties, Illinois
$61,605,000 General Obligation Bonds, Series 2016
Dated Date of Delivery Book-Entry Due on December 1, 2016-2035
The $61,605,000 General Obligation Bonds, Series 2016 (the "Bonds"), are being issued by the City of Naperville, DuPage and Will Counties, Illinois
(the "City"). Interest is payable semiannually on June 1 and December 1 of each year, commencing December 1, 2016. Interest is calculated based on a 360-day year of twelve 30-day months. The Bonds will be issued using a book-entry system. The Depository Trust Company ("DTC"), New York, New York, will act as
securities depository for the Bonds. The ownership of one fully registered Bond for each series and maturity will be registered in the name of Cede & Co., as
nominee for DTC and no physical delivery of Bonds will be made to purchasers. The Bonds will mature on December 1 in the following years and amounts.
AMOUNTS, MATURITIES, INTEREST RATES, YIELDS AND CUSIP NUMBERS
PrinGipal Due Interest
Amount Dec. 1 Rate Yield
$ 260.000 ........ 2016 2.000% 0.550%
515,000 ........ 2017 2.000% 0.820%
3,855,000 ........ 2018 2.000% 0.940%
7,025,000 ........ 2019 2.000% 1.070%
6,385,000 ........ 2020 2.000% 1.190%
5,220,000 ........ 2021 2.000% 1.320%
5,540,000 ........ 2022 2,000% 1.490%
5,550,000 ........ 2023 3.000% 1.600%
5,975,000 ........ 2024 3.000% 1.730%
4,785,000 ........ 2025 3.000% 1.870%
CUSIP(1) Principal Due Interest OUSIP(1)
Number Amount Dec. 1 Rate Yield Number
630412 WK6 $3,800,000 ........ 2026* 3.000% 2.000% 630412 WV2
630412 WL4 2, 925,000 ........ 2027* 3. 000% 2.120% 630412 WWO
630412 WM2 3,170,000 ........ 2028* 3.000% 2.220% 630412 WX8
630412 WNO 1,135,000 ........ 2029, 3.500% 2.560% 630412 WY6
630412 WP5 775,000 ........ 2030, 3.500% 2.590% 630412 WZ3
630412 W03 935,000 ........ 2031, 3.500% 2. 640% 630412 XA7
630412 WR1 970,000 ........ 2032, 3.500% 2.690% 630412 XB5
630412 WS9 995,000 ........ 2033* 3.500% 2.740% 630412 XC3
630412 WT7 1,030,000 ........ 2034* 3,500% 2.790% 630412 XD1
630412 WU4 760,000 ........ 2035* 3.500% 2.840% 630412 XE9
*These maturities have been priced to tail
OPTIONAL REDEMPTION
The Bonds due December 1, 2016-2025, inclusive, are non-callable. The Bonds due December 1, 2026-2035, are callable in whole or in part on any date
on or after December 1, 2025, at a price of par plus accrued interest to the redemption date. If less than all the Bonds are called, they shall be redeemed in such
principal amounts and from such maturities as determined by the District and within any maturity by lot. See "OPTIONAL REDEMPTION" herein.
PURPOSE, LEGALITY AND SECURITY
The Bond proceeds are expected to be used to (i) finance certain capital improvements in the City; (ii) advance refund a portion of the City's outstanding General Obligation Bonds, Series 2008 and General Obligation Bonds, Series 2009; and (iii) pay the costs of issuance of the Bonds. See "THE PROJECT" and
"PLAN OF FINANCING" herein.
The Bonds are valid and legally binding general obligations of the City and the City is obligated to levy ad valorem taxes upon all the taxable property within the City for the payment of the Bonds and the interest thereon without limitation as to rate or amount. However, the enforceability of rights or remedies with
respect to the Bonds may be limited by bankruptcy, insolvency or other laws affecting creditors' rights and remedies heretofore or hereafter enacted.
This Final Official Statement is dated June 8, 2016, and has been prepared under the authority of the City. An electronic copy of this Final Official
Statement is available from the www.speerfinancial.com web site under "Debt Auction Center/Competitive Official Statement Sales Calendar". Additional copies may be obtained from Ms. Rachel Mayer, Finance Director/City Treasurer, City of Naperville, 400 South Eagle Street, Naperville, Illinois 60540, or from the
Independent Public Finance Consultants to the City:
Speer Financial, Inc. INDEPENDENT MIJNICIPAL ADVI•QR S * E STABI.=ISIII!D ItJ54
ONE NORTI.I L.ASAI.LE STREE'I. SUITE ,tI00 i C'IIICAcGO. |LI,INOIS t•0ti02
T¢tephor!¢ 1312) •|6-]70•; Facsimile: (312) 3•46.1•833
CUSIP numbers appearing in this Final Official Statement have been provided by the CUSIP Service Bureau, which is managed on behalf of the American Bankers Association by S&P Capital IQ, a part of
McGraw Hill Financial Inc. The City is not responsible for the selection of CUSIP numbers and makes no representation as to their correctness on the Bonds or as set forth on the cover of this Final Official
Statement.
ATTACHMENT I: Obligations IssuedNAPERVILLE WATER STREET DISTRICTFY16
No dealer, broker, salesman or other person has been authorized by the City to give any information or to make
any representations with respect to the Bonds other than as contained in the Official Statement or the Final Official
Statement and, if given or made, such other information or representations must not be relied upon as having been
authorized by the City. Certain information contained in the Official Statement and the Final Official Statement may have been obtained from sources other than records of the City and, while believed to be reliable, is not guaranteed as
to completeness. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT
AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF
THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER
EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE
IN THE AFFAIRS OF THE CITY SINCE THE RESPECTIVE DATES THEREOF.
References herein to laws, rules, regulations, ordinances, resolutions, agreements, reports and other documents
do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference to the particular document, the full text of which may contain qualifications of and exceptions to statements
made herein. Where full texts have not been included as appendices to the Official Statement or the Final Official
Statement, they will be furnished on request. This Official Statement does not constitute an offer to sell, or solicitation
of an offer to buy, any securities to any person in any jurisdiction where such offer or solicitation of such offer would
be unlawful.
(i)
Table of Contents
BOND ISSUE SUMMARY ............................................................................................................................................................................................ 1
AUTHORIZATION, PURPOSE AND SECURITY .................................................................................................................................................... 2
THE CITY ....................................................................................................................................................................................................................... 2
City Government and Services .................................................................................................................................................................................... 3
Employee Relations ..................................................................................................................................................................................................... 3
Education ..................................................................................................................................................................................................................... 4
Recreation .................................................................................................................................................................................................................... 4
Transportation .............................................................................................................................................................................................................. 4
SOCIOECONOMIC INFORMATION ........................................................................................................................................................................ 5
Building Permits .......................................................................................................................................................................................................... 6
Housing ........................................................................................................................................................................................................................ 7
Income ......................................................................................................................................................................................................................... 7
Retail Activity .............................................................................................................................................................................................................. 9
THE PROJECT .............................................................................................................................................................................................................. 9
PLAN OF FINANCING ............................................................................................................................................................................................... 10
DEBT INFORMATION ............................................................................................................................................................................................... 12
PROPERTY ASSESSMENT AND TAX INFORMATION ...................................................................................................................................... 14
REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES ................................................................................... 15
Tax Levy and Collection Procedures ......................................................................................................................................................................... 15
Exemptions ................................................................................................................................................................................................................ 16
Property Tax Extension Limitation Law .................................................................................................................................................................... 17
Truth in Taxation Law ............................................................................................................................................................................................... 18
FINANCIAL INFORMATION ................................................................................................................................................................................... 18
Investment and Cash Management Policy ................................................................................................................................................................. 18
Financial Reports ....................................................................................................................................................................................................... 19
No Consent or Updated Information Requested of the Auditor ................................................................................................................................. 19
Summary Financial Information ................................................................................................................................................................................ 19
Transition to a Calendar Year .................................................................................................................................................................................... 24
EMPLOYEE RETIREMENT AND OTHER POSTEMPLOYMENT BENEFITS OBLIGATIONS .................................................................. 25
REGISTRATION, TRANSFER AND EXCHANGE ................................................................................................................................................ 25
Registration and Record Date .................................................................................................................................................................................... 25
Transfers and Exchanges ........................................................................................................................................................................................... 25
TAX EXEMPTION ...................................................................................................................................................................................................... 26
Summary of Bond Counsel Opinion .......................................................................................................................................................................... 26
Bonds Purchased at a Premium or a Discount ............................................................................................................................................................ 26
Exclusion From Gross Income Requirements ............................................................................................................................................................ 27
Risks of Non-Compliance .......................................................................................................................................................................................... 27
Federal Income Tax Consequences ............................................................................................................................................................................ 27
CONTINUING DISCLOSURE ................................................................................................................................................................................... 28
OPTIONAL REDEMPTION ...................................................................................................................................................................................... 29
LITIGATION ............................................................................................................................................................................................................... 29
LEGAL MATTERS ..................................................................................................................................................................................................... 29
OFFICIAL STATEMENT AUTHORIZATION ....................................................................................................................................................... 30
INVESTMENT RATINGS .......................................................................................................................................................................................... 30
DEFEASANCE AND PAYMENT OF BONDS ......................................................................................................................................................... 30
UNDERWRITING ....................................................................................................................................................................................................... 31
MUNICIPAL ADVISOR ............................................................................................................................................................................................. 31
CERTIFICATION ....................................................................................................................................................................................................... 31
APPENDIX A -
APPENDIX B -
APPENDIX C -
APPENDIX D -
FISCAL YEAR 2015 AUDITED FINANCIAL STATEMENTS
DESCRIBING BOOK-ENTRY-ONLY ISSUANCE
PROPOSED FORM OF OPINION OF BOND COUNSEL
EXCERPTS OF FISCAL YEAR 2015 AUDITED FINANCIAL STATEMENTS
RELATING TO THE CITY'S PENSION PLANS
(ii)
City of Naperville, DuPage and Will Counties, Rlinois
General Obligation Bonds, Series 2016
BOND ISSUE SUMMARY
This Bond Issue Summary is expressly qualified by the entire Final Official Statement, which is provided for the convenience of
potential investors and which should be reviewed in their entirety by potential investors.
Issuer: City of Naperville, DuPage and Will Counties, Illinois.
Issue: $61,605,000 General Obligation Bonds, Series 2016.
Dated Date: Date of delivery, expected to be on or about June 22, 2016.
Interest Due: Each June 1 and December 1, commencing December 1, 2016.
Principal Due: Each December 1, commencing December 1, 2016, through December 1, 2035, as detailed on
the cover page of this Final Official Statement.
Optional Redemption: The Bonds due December 1, 2016-2025, inclusive, are non-callable. The Bonds due December
1, 2026-2035, are callable in whole or in part on any date on or after December 1, 2025, at a
price of par plus accrued interest to the redemption date. If less than all the Bonds are called,
they shall be redeemed in such principal amounts and from such maturities as determined by the
District and within any maturity by lot. See "OPTIONAL REDEMPTION" herein.
Authorization: The City is a home rule unit under the 1970 Illinois Constitution, has no statutory debt limit, and
is not required to seek referendum approval to issue the Bonds.
Security: The Bonds are valid and legally binding general obligations of the City and the City is obligated to levy ad valorem taxes upon all the taxable property within the City for the payment of the
Bonds and the interest thereon without limitation as to rate or amount. However, the
enforceability of rights or remedies with respect to the Bonds may be limited by bankruptcy, insolvency or other laws affecting creditors' rights and remedies heretofore or hereatter enacted.
Investment Ratings: Standard & Poor's, a Division of the McGraw-Hill Companies, New York, New York ("S&P"), has assigned the Bonds an investment rating of "AAA (Stable Outlook)"; and Moody's Investors
Service, New York, New York ("Moody's') has assigned the Bonds an investment rating of
"Aaa". See "INVESTMENT RATINGS" herein.
Purpose: The Bond proceeds are expected to be used to (i) finance certain capital improvements in the
City; (ii) advance refund a portion of the City's outstanding General Obligation Bonds, Series
2008 and General Obligation Bonds, Series 2009; and (iii) pay the costs of issuance of the
Bonds. See "PLAN OF FINANCING" herein.
Tax Exemption: Katten Muchin Rosenman LLP, Chicago, Illinois, will provide an opinion as to the tax
exemption of the interest on the Bonds as discussed under "TAX EXEMPTION" in this Final
Official Statement. Interest on the Bonds is not exempt from present State of Illinois income
taxes.
Bond Registrar/Paying Agent/ Escrow Agent: UMB Bank, St. Louis, Missouri.
Verification Agent: Grant Thornton LLP, Minneapolis, Minnesota.
Delivery: The Bonds are expected to be delivered on or about June 22, 2016.
Book-Entry Form: The Bonds will be registered in the name of Cede & Co. as nominee for The Depository Trust
Company ("DTC"), New York, New York. DTC will act as securities depository of the Bonds.
See APPENDIX B herein.
Denomination: $5,000 or integral multiples thereof.
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
Becky Anderson
Rebecca Boyd-Obarski Judy Brodhead
CITY OF NAPERVILLE
DuPage and Will Counties, Illinois
Steve C. Chirico
Mayor
City Council Members
Kevin Coyne Kevin Gallaher
Patty Gustin
Paul Hinterlong John Krummen
OFFICIALS
Pam R. Gallahue
City Clerk
Douglas Krieger City Manager
Rachel Mayer Finance Director Treasurer
Speer Financial, Inc.
Municipal Advisor
Katten Muchin Rosenman LLP
Bond Counsel
AUTHORIZATION, PURPOSE AND SECURITY
The $61,605,000 General Obligation Bonds, Series 2016 (the "Bonds"), are being issued pursuant to the home
rule powers of the City of Naperville, DuPage and Will Counties, Illinois (the "City"), under Section 6 of Article VII
of the 1970 Constitution of the State of Illinois, and pursuant to a bond ordinance adopted by the City Council on the
17th day of May, 2016 (the "Bond Ordinance"). Bond proceeds will be used to (i) finance certain capital improvements of the City, (ii) advance refund a portion of the City's outstanding General Obligation Bonds, Series
2008 and General Obligation Bonds, Series 2009, and (iii) to pay the costs of issuing the Bonds. See "THE
PROJECT" and "PLAN OF FINANCE" herein. The Bonds constitute valid and legally binding full faith and credit
general obligations of the City, and are payable from any funds of the City legally available for such purpose, and all
taxable property in the City is subject to the levy of taxes to pay the same without limitation as to rate or amount. The
Bond Ordinance provides for the levy of ad valorem taxes, unlimited as to rate or amount, upon all taxable property within the City in amounts sufficient to pay, as and when due, all principal of and interest on the Bonds. The Bond
Ordinance will be filed with the County Clerks of DuPage and Will Counties, and will serve as authorization to said
County Clerks to extend and collect the property taxes as set forth in the Bond Ordinance.
THE CITY
The City, incorporated in 1857, is located in southwestern DuPage County with a portion in Will County and
covers an area of approximately 39.90 square miles. The City is a home-rule unit of government under the 1970 Illinois
Constitution and operates under the Council-Manager form of government. The City is located along the 1-88 State of
Illinois designated High Technology Corridor and is home to many corporate headquarters, research centers and
facilities for many well-known national and international companies. The City has been one of the fastest growing communities in the Chicago metropolitan area over the past decade and, based on U.S. Census Bureau estimates, is the
fourth largest city in the state with a population of 146,128, as of July 1, 2014.
City of NaperviUe, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
City Government and Services
Since October 1, 1969, the City has been operating under a Council-Manager form of government. The City Manager is appointed by the Council, which consists of a Mayor and eight Councilmen who are elected for overlapping four-year terms. The Council sets policy for the City, adopts ordinances and resolutions, approves the annual budget and approves all expenditures or disbursements. Total budgeted employment of the City is 968 full-time equivalent positions.
The City owns its own water, wastewater and electric distribution systems. The wastewater system has over
41,000 customers and the water system has over 42,000 customers with consumption of 5.8 billion gallons. The electric
system serves over 57,000 customers. Natural gas is provided by Northern Illinois Gas, cable television is provided by Comcast, AT&T Broadband, and Wide Open West, and telephone service is provided by Ameritech, AT&T, and
various other companies.
The City's Police Department, consisting of 168 sworn employees and 107 civilian employees, provide police protection. The City's Public Safety Answering Point (the "911 Center") became accredited in fiscal year 2002, making Naperville the first City in the country with an accredited dispatch center and police and fire department.
The Fire Department, consisting of 192 full time personnel and 10 civilian employees, provides fire protection as well as paramedic and special rescue services to the City's residents. The Department is staffed 24 hours per day and
operates a total of 23 front line engines, front line ambulances, and front line ladder trucks with 1 Shift Commander
and 1 Safety Officer. The Department maintains 10 advanced-life-support vehicles and 9 fire suppression vehicles, and
4 ladder truck vehicles, which operate out of 10 stations. The City currently maintains an ISO fire insurance rating of
2. The Fire Department is accredited by the Commission for Public Safety Excellence.
The City owns and appoints a board which operates the Naperville Public Libraries. The libraries contain over
792,000 volumes as well as periodicals, audiovisual equipment and software available for City residents. Nichols
Library was built in 1986 and is approximately 63,000 square feet in size. The Naper Boulevard Library, a 64,000
square foot branch library, was completed in December 1992. The 95th Street Library was completed in 2003 and is
the biggest library of the three in the City with 73,000 square feet in size.
Employee Relations(I)
Salaries, working conditions and benefits of certain employees in the following departments are governed through bargaining agreements:
Budgeted Full Time
Department Equivalent Water/Wastewater .................................................................... 46
Water -Local Union No. 150 ....................................................... 8
Police -Labor Council/F.O.P. Lodge No. 42 .................................... 134
Police -Labor Council/F.O.P. Lodge No. 42-1 ................................. 5
Police -Labor Council/F.O.P. Lodge No. 42-2 ................................. 25.5
Police -MAP Chapter 363 ........................................................... 24
Police -MAP Chapter 582 ........................................................... 10
Electric ................................................................................. 59
Public Works Operating Engineers -Local Union No. 150 .................... 45
DPW-Field Supervisors -Local Union No. 150 ................................. 6
DPW-Fleet -Local Union No. 150 ................................................. 16
Public Works Operating Engineers -Local Union No. 399 .................... 12
Fire-Firefighters ...................................................................... 185
Expiration Negotiating Negotiating December 31, 2019
Negotiating
Negotiating December 31,2019
Negotiating Negotiating
April 30, 2017
Negotiating
Negotiating
Negotiating
Negotiating
Note: (1) Source: City of Naperville.
All other employees are compensated based on a plan approved annually by the City Council.
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
Education
There are two public school districts that serve the City. Naperville Community Unit School Number 203 has a
total enrollment of over 16,900 students for the 2015-2016 school year. District 203 operates 14 elementary schools, five junior high schools and two high schools. Indian Prairie Community Unit School District Number 204 had a total
enrollment of over 28,500 for the 2015-2016 school year. District 204 operates twenty-one elementary schools, seven
middle schools, three high schools, one alternative school and one pre-school The area also has seven private schools in
the City.
In addition, there are many higher educational opportunities within the surrounding areas such as Northern
Illinois University, North Central College, DePaul University, Robert Morris College, and College of DuPage. Other
educational institutions in surrounding communities include Benedictine University, National-Lewis University, Illinois
Institute of Technology, Aurora University, and Wheaton College as well as the many other colleges and universities
within the Chicago-land area.
Recreation
The City is served by the Naperville Park District (the "District"). The District maintains and operates more
than 2,400 acres with 137 parks and facilities and provides more than 1,400 recreational, arts and environmental
programs and special events annually. Included within the District's operations are two championship golf courses, a
multitude of playgrounds, trails, athletic courts and sports fields, two inline skating and skateboarding facilities, the Millennium Carillon, a paddleboat quarry, and historic Centennial Beach. The City also has a fully developed Riverwalk system that traverses through the City's downtown. The City is also home to Naper Settlement, a historical
settlement which has replica businesses and working shops, primarily from the 19th Century. In addition, the DuPage County Forest Preserve has over 4,500 areas of open space within close proximity of the City.
Transportation
The City is located approximately 28 miles west of downtown Chicago along the Illinois Research and
Development Corridor, which was designated in April of 1986 by the State of Illinois as an area targeted for growth as
a high-technology corridor. Commuter travel to and from Chicago's downtown is available via the Burlington-Northern Santa Fe Railway at two train stations. Also accessible to the City are Interstate 290 (the Eisenhower Expressway), Interstate 88 (Reagan Memorial Tollway), Interstate 355 (Veterans Memorial Tollway) and Interstate 55 (Stevenson
Expressway). Air travel is also accessible to residents and corporations: O'Hare International Airport is located just 26
miles northeast of the City, Midway Airport is approximately 22 miles east, DuPage County Airport lies 15 miles
northwest and Aurora Municipal Airport 10 miles to the west.
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
SOCIOECONOMIC INFORMATION
Following are lists of large employers located in the City and in the surrounding area.
Major City Employers (1)
Nam____ee Product/Service Edward Hospital ...........................................
General Hospital .............................................. 4,700 AlcateI-Lucent ............................................
Telecommunications Research ................................... 3,400
School District Number 204 ................................ Public School District ........................................ 3,022
School District Number 203 ................................ Public School District ........................................ 2,350
Nicer Gas ................................................. Gas Distribution Headquarters ................................. 2,140
BP America ................................................ Testing Laboratory ............................................ 1,800
BMO Harris ................................................ National Bank ................................................. 1,200
Nalco ..................................................... Water Treatment ............................................... 1,000
City of Naperville ........................................ Municipality .................................................. 965
Coriant ................................................... Telecommunications Equipment .................................. 700
North Central College ..................................... Liberal Arts College .......................................... 625
Approximate
Employment
Note" (I) Source" 2016 Illinois Manufacturers Directory, 2016 Illinois Services Directory, the City's 2015 CAFR and a selective
telephone survey.
Major Area Employers (1)
Approximate Location Nam_.__ee Product/Service Employment Lisle ...................... Navistar, Inc ................................. Holding Company Headquarters ................ 3,000
Lisle ...................... IC Bus, LLC ................................... School Buses Company Headquarters ........... 2,800
Aurora ..................... Rush Copley Medical Center .................... General Hospital ............................ 2,000
Lisle ...................... Platinum Systems Specialists, In¢ ............. Computer Consulting ......................... 1,500
Aurora ..................... Presence Mercy Medical Center ................. General Hospital ............................ 1,300
Aurora ..................... Dreyer Medical Clinic ......................... Medical Center .............................. 1,200
Lisle ...................... Molex, LLC .................................... Electronic Components ....................... 1,000
Lisle ...................... Valid USA, Inc ................................ Marketing Services .......................... 1,000
Lisle ...................... CA Technologies ............................... Software Development ........................ 800
Warrenville ................ EN Engineering, LLC ........................... Engineering ................................. 800
Aurora ..................... Metlife, Inc .................................. Insurance ................................... 760
Warrenville ................ Liberty Mutual Insurance Co ................... Insurance ................................... 600
Bolingbrook ................ Ulta Salon Cosmetics and Fragrance, Inc ....... Cosmetics ................................... 600
Note" (1) Source" 2016 Illinois Manufacturers Directory, 2016 Illinois Services Directory, and a selective telephone survey.
The following tables show employment by industry and by occupation for the City, DuPage County, Will
County and the State of Illinois (the "State") as reported by the U.S. Census Bureau 2010-2014 American Community Survey 5-year estimated values.
Employment By Industry (1)
Classification
Agriculture, Forestry, Fishing and Hunting, and Mining .............
Construction ......................................................
Manufacturing ............ • ........................................
Wholesale Trade ....................................................
Retail Trade ......................................................
Transportation and Warehousing, and Utilities ......................
Information .......................................................
Finance and Insurance, and Real Estate and Rental and Leasing ......
Professional, Scientific, and Management, and Administrative
and Waste Management Services ....................................
Educational Services and Health Care and Social Assistance .........
Arts, Entertainment and Recreation and Accommodation and
Food Services ....................................................
Other Services, Except Public Administration .......................
Public Administration ..............................................
Total ...........................................................
The City DuPage County Will County The State
Number Percent Number Percent Number Percent Number Percent
116 0.2% 1,073 0.2% 1,330 0.4% 63,558 1.1%
1,879 2.6% 21,266 4.5% 19,030 5.8% 308,760 5.1%
7,399 10.3% 59,480 12.5% 38,475 11.8% 756,747 12.5%
2,303 3.2% 18,786 4.0% 10,573 3.2% 181,855 3.0%
7,782 10.8% 50,165 10.6% 39,827 12.2% 663,401 11.0%
2,584 3.6% 26,435 5.6% 25,040 7.7% 353,089 5.9%
2,421 3.4% 12,523 2.6% 6,740 2.1% 124,634 2.1%
8,047 11.2% 43,157 9.1% 21,722 6.6% 442,091 7.3%
12,686 17.6% 66,903 14.1% 36,102 11.0% 681,276 11.3%
16,184 22.4% 99,913 21.1% 73,100 22.3% 1,391,310 23.1%
5,713 7.9% 40,828 8.6% 27,754 8.5% 544,222 9.0%
3,334 4.6% 22,660 4.8% 15,108 4.6% 288,596 4.8%
1,656 2.3% 11,412 2.4% 12 469 3.8% 232,492 3.9%
72,104 100.0% 474,601 100.0% 327,270 100.0% 6,032,031 100.0%
Note: (1) Source" U.S. Bureau of the Census, American Community Survey 5-year estimates 2010 to 2014.
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
Employment By Occupation(I)
The City Classification Number Percent
Management, Business, Science and Arts ............................. 40,604 56.3% 210,394 44.3%
Service ........................................................... 7,536 10.5% 62,712 13.2%
Sales and Office ................................................... 18,672 25.9% 125,860 26.5%
Natural Resources, Construction, and Maintenance ................... 1,921 2.7% 26,103 5.5%
Production, Transportation, and Material Moving .................... 3,371 4.7% 49,532 10.4%
Total ........................................................... 72,104 100.0% 474,601 100.0%
DuPage County Number Percent
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2010 to 2014.
Will County Number Percent
118,255 36.1%
51,201 15.6%
84,609 25.9%
28,241 8.6%
44 964 13.7%
327,270 100.0%
The State
Number Percent
2,204,363 36.5%
1,048,478 17.4%
1,500,220 24,9%
441,705 7.3%
837,265 13.9%
6,032,031 100.0%
Annual Average Unemployment Rates (1)
Calendar The DuPage Will The
Year City Count• County State
2007 .............. 3.3% 3.8% 4.7% 5.1%
2008 .............. 3.6% 5.8% 6.1% 6.4%
2009 .............. 6.2% 8.6% 10.1% 10.0%
2010 .............. 8.0% 8.3% 10.7% 10.5%
2011 .............. 6.1% 7.3% 10.1% 9.7%
2012 .............. 6.7% 7.2% 9.1% 8.9%
2013 .............. 7.1% 7.5% 9.4% 9.2%
2014 .............. 5.5% 5.6% 7.4% 7.1%
2015 .............. 4.5% 4.7% 6.0% 5.1%
2016(2) ........... 4.6% 5.3% 7.0% 7.1%
Notes: (1) Source: Illinois Department of Employment Security. (2) Preliminary rates for January 2016.
Building Permits
Residential building permits have averaged $89,051,297 annually over the last five years in the City, excluding the value of land.
City Building Permits(I)
Commercial Construction Residential Construction
Calendar Number of Number of
Year Units Value Units Value Total
2011 ...... 27 $ 20,957,024 186 $50,878,360 $ 71,835,384
2012 ...... 13 28,975,537 195 80,054,208 109,029,745
2013 ...... 27 119,583,402 298 90,813,098 210,396,500
2014 ...... 20 95,129,800 357 117,571,523 212,701,323
2015 ...... 25 183,253,255 348 105,939,296 289,192,551
Note: (1) Source: The City.
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
Housing
The U.S. Census Bureau 5-year estimated values reported that the median value of the City's owner-occupied homes was $377,900. This compares to $279,700 for DuPage County, $212,700 for Will County and $175,700 for the
State. The following table represents the five year average market value of specified owner-occupied units for the City, DuPage and Will Counties and the State at the time of the 2010-2014 American Community Survey.
Value
Under $50,000 ...................................
$50,000 to $99,999 ..............................
$100,000 to $149,999 ............................
$150,000 to $199,999 ............................
$200,000 to $299,999 ............................
$300,000 to $499,999 ............................
$500,000 to $999,999 ............................
$1,000,000 or more ..............................
Total .........................................
Home Values(I)
Ihe City DuPage County Will County The State
Number Percent Number Percent Number Percent Number Percent
521 1.4% 5,586 2.2% 5,962 3.3% 243,163 7.6%
641 1.7% 9,400 3.8% 10,978 6.0% 508,867 15.9%
1,340 3.6% 19,191 7.7% 26,026 14.2% 525,634 16.5%
2,564 6.8% 32,891 13.2% 40,657 22.2% 533,202 16.7%
6,164 16.4% 71,497 28.7% 53,751 29.4% 663,672 20.8%
18,199 48.3% 74,628 30.0% 36,360 19.9% 486,000 15.2%
7,657 20.3% 28,824 11.6% 8,618 4.7% 188,718 5.9%
585 1.6% 6 819 2.7% 561 0.3% 45,451 1.4%
37,671 100.0% 248,836 100.0% 182,913 100.0% 3,194,707 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2010 to 2014.
Mortgage Status(I)
Value
Housing Units with a Mortgage .................
Housing Units without a Mortgage ..............
Total .......................................
The City DuPage County Will County The State
Number Percent Number Percent Number Percent Number Percent
28,970 76.9% 180,371 72.5% 140,090 76.6% 2,146,363 67.2%
8,701 23.1% 68,465 27.5% 42,823 23.4% 1,048,344 32.8%
37,671 100.0% 248,836 100.0% 182,913 100.0% 3,194,707 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2010 to 2014.
Income
Per Capita Personal Income
for the Highest Income Counties in the State(l)
Rank 2010-2014
1 ..................... DuPap County ............... $38,931
2 ...................... Lake County ................. 38,459
3 ...................... MoHenry County .............. 33,118
4 ...................... Monroe County ............... 33,059
5 ...................... Piatt County ................ 31,750 6
...................... Kendall County .............. 31,110
7 ..................... Will County ................. 30,791
8 ...................... McLean County ............... 30,728
9 ...................... Kane County ................. 30,645
10 ..................... Sangamon County ............. 30,594
11 ..................... Cook County ................. 30,468
Note: (1) Source: U.S. Bureau of the Census. 2010-2014
American Community 5-Year Estimates.
O'ty of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
The following shows a ranking of median family income for the Chicago metropolitan area from the 2010-2014
American Community Survey.
Ranking of Median Family Income (1)
Family County Income Rank
OuPage County ......... $96,330 1
Lake County ........... 92,910 2
Kendall County ........ 92,794 3
McHenry County ........ 88,699 4
Will County ........... 87,503 5
Kane County ........... 81,273 8
Cook County ........... 66,712 25
Note: (1) Source: U.S. Bureau of the Census 2010-2014
American Community Survey 5-Year Estimates.
The U.S. Census Bureau 5-year estimated values reported that the City had a median family income of
$127,554. This compares to $96,330 for DuPage County, $87,503 for Will County and $70,967 for the State. The
following table represents the distribution of family incomes for the City, DuPage and Will Counties and the State at
the time of the 2010-2014 American Community Survey.
Family Income(I)
The City Income Number Percent
Under $10,000 ................................. 554 1.5%
$10,000 to $14,999 ............................ 273 0.7%
$15,000 to $24,999 ............................ 938 2.5%
$25,000 to $34,999 ............................ 1,131 3.0%
$35,000 to $49,999 ............................ 2,370 6.2%
$50,000 to $74,999 ............................ 3,977 10.4%
$75,000 to $99,999 ............................ 4,330 11.4%
$100,000 to $149,999 .......................... 9,279 24.3%
$150,000 to $199,999 .......................... 6,430 16.9%
$200,000 or more .............................. 8,864 23.2%
Total ....................................... 38,146 100,0%
DuPage County Will County Number Percent Number Percent
4,595 1.9% 4,435 2.6%
2,785 1.2% 2,365 1.4%
9,215 3.9% 8,246 4.8%
12,707 5.3% 9,374 5.5%
22,417 9.4% 16,073 9.4%
36,905 15.4% 30,345 17.7%
36,293 15.2% 29,305 17.1%
53,766 22.5% 39,903 23.3%
27,457 11.5% 17,748 10.4%
33,087 13.8% 13,423 7.8%
239,227 100.0% 171,217 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2010 to 2014.
The State
Number
138 048
84 725
222 412
252 033
376 290
577 132
465095
553,083
230 525
231,782
Percent
4.4%
2. 7%
7.1%
8.0%
12.0%
18.4%
14. 9%
17.7%
7.4%
7.4%
3,131,125 100.0%
The U.S. Census Bureau 5-year estimated values reported that the City had a median household income of
$109,512. This compares to $79,016 for DuPage County, $76,142 for Will County and $57,166 for the State. The
following table represents the distribution of household incomes for the City, DuPage and Will Counties and the State
at the time of the 2010-2014 American Community Survey.
Household Income(I)
Income
Under $10,000 ................................. 1,518
$10,000 to $14,999 ............................ 683
$15,000 to $24,999 ............................ 2,176
$25,000 to $34,999 ............................ 2,445
$35,000 to $49,999 ............................ 3,960
$50,000 to $74,999 ............................ 6,053 $75,000 to $99,999 ............................ 5,947
$100,000 to $149,999 .......................... 10,599
$150,000 to $199,999 .......................... 6,962
$200,000 or more .............................. 9,398
Total ....................................... 49,741
The City DuPage County Will County The State
Number Percent Number Percent Number Percent Number Percent
3.1% 11,774 3.5% 8,129 3.6%
1.4% 8,045 2.4% 5,377 2.4%
4.4% 21,052 6.2% 15,759 7.1%
4.9% 24,800 7.4% 15,651 7.0%
8.0% 37,880 11.2% 24,324 10.9%
12.2% 56,776 16.8% 40,497 18.1%
12.0% 48,203 14.3% 35,127 15.7%
21.3% 62,317 18.5% 44,739 20.0%
14.0% 30,405 9.0% 19,213 8.6%
18.9% 35,751 10.6% 14 563 6.5%
100.0% 337,003 100.0% 223,379 100.0%
341,784 7.2%
218,422 4.6%
479,384 10.0%
455,890 9.5%
614,706 12.9%
852,342 17.8%
612,247 12.8%
671,103 14.0%
265,693 5.6%
267,062 5.6%
4,778,633 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2010 to 2014.
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
Retail Activity
Following is a summary of the City's sales tax receipts as collected and disbursed by the State of Illinois.
Retailers' Occupation, Service Occupation and Use Tax(l)(2)
State Fiscal Year Municipal Percent
Ending June 30 Tax Change +(-)
2006 .............. $26,243,702 (7.95%)
2007 .............. 27,190,176 3.61%
2008 .............. 27,131,897 (0.21%)
2009 .............. 25,573,987 (5.74%) 2010 .............. 24,854,740 (2.81%)
2011 .............. 26,861,455 8.07%
2012 .............. 28,055,015 4.44%
2013 .............. 30,030,630 7.04%
2014 .............. 32,014,712 6.61%
2015 .............. 33,336,313 4.13%
Growth from 2006 to 2015 ............. 27.03%
Notes: (1)
(2)
Source: Illinois Department of Revenue.
Tax distributions are based on records of the
Illinois Department of Revenue relating to the 1%
municipal portion of the Retailers' Occupation, Servioe Occupation and Use Tax, collected on
behalf of the City, less a State administration
fee. The municipal 1% includes tax receipts from
the sale of food and drugs which are not taxed by the State.
THE PROJECT
A portion of Bond proceeds will be used to finance certain capital improvements in the City. The capital improvements include: E-Government initiatives related to the upgrading and replacement of technology infrastructure
and expansion of the City's technology resources; building maintenance and upgrades; stormwater management
programs; urban forest initiatives related to the mitigation of the Emerald Ash Borer and planting of new City trees;
traffic improvement programs; and improvements within the Water Street TIF District including utility construction,
parking deck construction and right-of-way construction and upgrades.
City of NaperviUe, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
PLAN OF FINANCING
A portion of the Bond proceeds are expected to be used to advance refund a portion of the City's outstanding General Obligation Bonds, Series 2008 and General Obligation Bonds, Series 2009, as listed below (collectively, the
"Refunded Bonds").
The Refunded Bonds
General Obligation Bonds, Series 2008
Outstanding
Maturities Amount
12/1/2016 ................. $ 2,400,000
12/1/2017 .................
12/1/2018 .................
12/1/2019 ................. 12/1/2020 .................
12/1/2021 .................
12/1/2022 .................
12/1/2023 .................
12/1/2024 .................
12/1/2025 .................
12/1/2026 .................
12/1/2027 .................
12/1/2028 .................
12/1/2029 .................
12/1/2030 .................
12/I/2031 .................
12/1/2032 .................
12/1/2033 .................
12/1/2034 .................
12/1/2035 .................
12/1/2036 .................
12/1/2037 .................
12/1/2038(1) ..............
Total ................... $29,
3.095.000
2.890.000
2.885.000
2.880.000
2.875,000
2.870.000
2,870,000
2.665.000
1.860.000
260 000 (1)
125 000(I)
130 000 (1)
135 000
140 000(1)
150 000(1)
155,000(1)
165 000(I)
170 000(1)
180 000(1)
190 000(1)
200 000 (1)
205,000
495.000
Amount Redemption Redemption
Refunded Prioe Date
$ 0 N/A N/A
0 N/A N/A
2,890,000 100% 12/I/2017
2,885,000 100% 12/1/2017
2,880,000 100% 12/1/2017
2,875,000 100% 12/1/2017
2,870,000 100% 12/1/2017
2,870,000 100% 12/1/2017
2,665,000 100% 12/1/2017
1.860.000 100% 12/1/2017
260,000 100% 12/1/2017
125,000 100% 12/1/2017
130,000 100% 12/1/2017
135,000 100% 12/1/2017
140,000 100% 12/1/2017
150,000 100% 12/1/2017
155,000 100% 12/1/2017
165,000 100% 12/1/2017
170,000 100% 12/1/2017
180,000 100% 12/1/2017
190,000 100% 12/1/2017
200.000 100% 12/1/2017
205,000 100% 12/1/2017
$24,000,000
General Obligation Bonds, Series 2009
Outstanding Maturities Amount
12/1/2016 ............... $ 2,400,000
12/1/2017 ............... 2,500,000
12/1/2018 ............... 2.800,000
12/1/2019 ............... 2,930,000
12/1/2020 ............... 1,800,000
12/1/2021 ............... 1,900,000
12/1/2022 ............... 2,000,000
12/1/2023 ............... 2,100,000
12/1/2024 ............... 2,190,000
12/1/2025 ............... 2,250,000
12/1/2026 ............... 2,350,000
12/1/2027 ............... 2,450,000
12/1/2028 ............... 2,480,000 Total ................. $30,150,000
Note: (1) Mandatory sinking fund redemption.
Amount Redemption Redemption Refunded Price Date
0 N/A N/A 0 N/A N/A 0 N/A N/A
2,930,000 100% 12/1/2018
1,800,000 100% 12/1/2018
1,900,000 100% 12/1/2018
2.000.000 100% 12/1/2018
2,100,000 100% 12/1/2018
2,190,000 100% 12/1/2018
2,250.000 100% 12/1/2018
2,350,000 100% 12/1/2018
2.450,000 100% 12/1/2018
2,480,000 100% 12/1/2018
$22,450,000
10
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
A portion of the Bond proceeds will be used to purchase direct full faith and credit obligations of the United States of America (the "Government Securities"), the principal of which together with interest to be earned thereon will be sufficient to pay when due the principal of and interest on the Refunded Bonds up to and including the redemption date thereof.
The Government Securities will be held in an escrow account created pursuant to an escrow agreement (the "Escrow Agreement") dated as of June 22, 2016, between the City and UMB Bank, St. Louis, Missouri, as escrow agent.
The mathematical calculations: (a) of the adequacy of the deposit made pursuant to the Escrow Agreement to
provide for the payment of certain interest and principal on the Refunded Bonds, and (b) supporting the conclusion that the Bonds are not "arbitrage bonds" under Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"), will be verified by Grant Thornton LLP, Minneapolis, Minnesota (the "Verification Agent"), at the time of delivery of the Bonds. All moneys and Government Securities deposited for the payment of Refunded Bonds, including interest thereon, are required to be applied solely and irrevocably to the payment of the Refunded Bonds.
11
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
DEBT INFORMATION
After issuance of the Bonds, the City will have outstanding $165,255,000 principal amount of general obligation debt. The City does not expect to issue additional general obligation debt in 2016.
General Obligation Bonded Debt(l)
(Principal Only)
Total
Less: The Refunded Bonds Principal
Calendar Series Series Series Series Series Series Series Series Series The Series Series All GO Principal Retired
Year 2008 2009 2010A 2010B 20100 2011 2012 2013 2014 Bonds 2008 2009 Bonds Amount Percent
2016 ....... $ 2,400,000 $ 2,400, 000 $ 0 $ 1,500, 000 $ 685.000 $ 1,100. O00 $ 2,210,000 $ 200, 000 $ 0 $ 260, 000 $ 0 $ 0 $ 10, 7GS, 000 $ 10, 755,000 6. 51•
2017 ....... 3,095.000 2, GO0. 000 0 3,000, 000 715,000 1,100, 000 2, 260,000 200. 000 1. 840.000 515, 000 0 0 15, 225, 000 25, 980,000 15. 72•
2018 ....... 2, 890,000 2.800, 000 0 3,000, 000 745.000 1, I00. 000 3. 325.000 200, 000 400.000 3,855. OOO (2, 890,000) 0 15,425. 000 41. 405.000 25. OG•
2019 ....... 2,885,000 2.930, 000 0 2,500, 000 780.000 1,100. 000 3. 390.000 200. 000 0 7,025.000 (2, 885,000) (2,930, 000) 14, 995. 000 56.400,000 34,13•
2020 ....... 2,860.000 1,800. 000 0 2,500,000 815.000 1,100. 000 2. 565,000 500, 000 200,000 6.385, 000 (2, 880, 000) (1,800,000) 14,065. 000 70. 465,000 42. 64•
2021 ....... 2.875.000 1. 900. 000 0 2.500. 000 855,000 1,000. 000 2, 530.000 500, 000 1. 000.000 5,220, 000 (2, 875,000) (1. 900,000) 13, 605, 000 84,070, 000 50. 87•
2022 ....... 2.870.000 2,000,000 0 2,500.000 0 1,000.000 1.970.000 500,000 1,000,000 5,540.000 (2,870,000) (2.000,000) 12,510.000 96,580.000 58.44•
2023 ....... 2.870,000 2.100, 000 975.000 1,525,000 0 1,000, 000 1,830.000 500,000 2,000,000 5,550, 000 (2, 870, 000) (2,100,000) 13,380, 000 109. 960,000 66. 54•
2024 ....... 2,665,000 2,190, 000 2, GO0, O00 0 0 1,000, 000 1. 445,000 500,000 900, 000 G, 975,000 (2, 665,000) (2,190,000) 12, 320, 000 122, 280. 000 73. 99•
2025 ....... 1,860, 000 2,250, OOO 1,500, 000 0 0 1. 000, 000 1,175.000 500,000 1,400, 000 4, 785,000 (1,860, 000) (2,250, OOO) 10, 360, 000 132, 640,000 80.26%
2026 ....... 260.000 2.350,000 1,000,000 0 0 1,000, O00 0 200, 000 1,000.000 3,800. 000 (260,000) (2, 350, 000) 7,000,000 139,640.000 84. 50•
2027 ........ 125,000 2,450, 000 1,000,000 0 0 1. 000. 000 0 200.000 2. 200.000 2,925,000 (125, 000) (2, 450, 0003 7. 325,000 146,965,000 88.93•
2028 ........ 130,000 2,480, 000 1,000,000 0 0 1,000, 000 0 200, O00 1,100, 000 3,170, 000 (130. 000) (2, 480, 0003 6. 470, 000 153,435,000 92.85%
2029 ........ 135,000 0 0 0 0 1,200, 000 0 200. 000 GO0, O00 1.135,000 (135. 000) 0 3,135.000 156,570,000 84. 74%
2030 ........ 140. 000 0 0 0 0 0 0 200, 000 1,200,000 775. 000 (140, 000) 0 2,175, 000 158. 745. 000 86.06%
2031 ........ 150,000 0 0 0 0 0 0 420.000 800,000 935,000 (150,000) 0 2,155,000 160.900,000 97.36%
2032 ........ 155.000 0 0 0 0 0 0 0 600, 000 970. 000 (155,000) 0 1, 670, 000 152,470,000 88. 31%
2033 ........ 165. 000 0 0 0 0 0 0 0 0 995. 000 (165,000) 0 995, 000 163,465,000 88. 92%
2034 ........ 170.000 0 0 0 0 0 0 0 0 1. 030. OOO (170,000) 0 1,030.000 164. 495.000 89. 54%
2035 ........ 180. 000 0 0 0 0 0 0 0 0 760, 000 (180,000) 0 760, 000 185. 255,000 100. 00%
2036 ........ 190.000 0 0 0 0 0 0 0 0 0 (190,000) 0 0 165. 255,000 100. 00•
2037 ........ 200.000 0 0 0 O 0 0 0 0 0 (200, 000) 0 0 165. 255,000 100. 00%
2038 ........ 205 000 0 0 0 0 0 0 0 0 0 (205,000) 0 0 165. 255,000 100. 00•
Total ....... $29.405.000 $30,150,00• $7,975,000 $19,025,000 64.595,000 $14,700.000 $22,700,000 $5,220,000 $16,240.000 $61,605,000 $(24,000,000) $(22,450,0•) $165,255,000
12
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
Detailed Overlapping Bonded Debt(l)(2) (As of March 28, 2016)
Outstanding Debt
Applicable to City Percent(3) Amount
Schoo s:
Schoo District Number 200 ........................ $163,185,000 0.36%
Schoo District Number 202 ........................ 5,460,000 1.67%
Schoo District Number 203 ........................ 32,070,000 77.43%
Schoc District Number 204 ........................ 229,765,000 60.32%
Schoo District Number 365 ........................ 122,274,518 0.01%
Community College Number 502 ...................... 231,950, 000 16.31%
Community College Number 525 ...................... 188, 490,000 0.27%
Total Schools ............................................................................
$ 587,466
91,182
24,831,801
138,594,248 12,227
37,831,045
508,923
$202.456,892
Others:
DuPage County .....................................
DuPage County Forest Preserve .....................
Will County .......................................
Will County Forest Preserve District ..............
Lisle Park District ...............................
Naperville Park District ..........................
Wheaton Park District .............................
$166,395,000 12.41%
141,098,676 12.41%
122,235,000 11.23%
125,014,710 11.23%
12,207,000 0.43%
25,070,000 96.35%
34,985,000 0.26%
Total Others ............................................................................
Total Schools and Others Overlapping Bonded Debt ........................................
$ 20,649,620
17,510,346
13,726,991
14,039,152
52,490
24,154,945
90,961 $ 90,224,504
$292,681,396
Note: (1) Source: DuPage and Will County Clerk.
(2) Includes alternate revenue source bonds. Does not include debt certificates.
(3) Percentages are based on 2015 Equalized Assessed Valuations, the most recent available.
Statement of Bonded Indebtedness (1)
Assessed Valuation of Taxable Property, 2015 .....
Estimated Actual Value, 2015 .....................
Amount
Applicable $ 6,278,656,175
$18,835,968,525
Ratio To
Equalized Assessed
100.00%
300.00%
Estimated
Actual
33.33%
100.00%
City Direct Bonded Debt(2) ....................... $ 165,255,000 2. 63% 0.88%
Overlapping Debt:(3)
Schools ........................................
All Others .....................................
Total Overlapping Bonded Debt ....................
Total Net Direct & Overlapping Debt(2)(3) ........
$ 202,456.892
90,224,504 $ 292,681,396
$ 457,936,396
3.22%
1.44%
4.66%
7.29%
1.07%
0.48%
1.55%
2.43%
Notes: (1) Source: The City. (2) Includes the Bonds and excludes the Refunded Bonds.
(3) As of March 28, 2016.
Per Capita (2010 Special
Census 141,853) $ 44,261.71
$132,785.13
$ 1,164.97
$ 1,427.23
636.04
$ 2,063.27
$ 3,228.25
13
City of NaperviUe, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
PROPERTY ASSESSMENT AND TAX INFORMATION
For the 2015 levy year, the City's EAV was comprised of approximately 81% residential, 19% commercial and
industrial, and less than 1% of farm and railroad property valuations.
Equalized Assessed Valuation(I)
Levy Years
Property Class 2011 2012 2013 2014 2015
Residential ............. $5,256,081,268 $4,964,302,585 $4,866,627,723 $4,917,955,140 $5,056,340,567 Farm .................... 314,912 334,456 315,592 215,985 190,521
Commercial/Industrial... 1,170,708,392 1,105,830,624 1,056,949,654 1,071,651,247 1,219,286,607
Railroad ................ 2,364,303 2,509,329 2,706,677 2,731,565 2,838,480
Total ................... $6,429,468,875 $6,072,976,994 $5,926,599,646 $5,992,553,937 $6,278,656,175 Percent change +(-) (4.31%) (2) (5.54%) (2.41%) 1.11% 4.77%
Notes: (1) Source: DuPage and Will County Clerks' offices.
(2) Percentage change based on a levy year 2010 EAV of $6,718,739,726.
Representative Tax Rates (1)
(Per $100 EAV)
2011
City Rates:
Corporate Fund ........................... $0.1381 Bonds and Interest
......................
IMRF ....................................
Firefighter's Pension ...................
Police Pension ..........................
Aquarium/Museum ......................... Library .................................
Total City Rate ........................ $0.7515
Levy Years
2012 2013 2014 2015
$0.1457 $0.1009 $0.0803 $0.1060 0.1799 0.1403 0.1631 0.2153 0.1249
0.0409 0.0444 0.0461 0.0460 0.0441
0.0737 0.0820 0.0884 0.0846 0.0945
0.0679 0.0787 0.0879 0.0845 0.0938
0.0434 0.0471 0.0499 0.0494 0.0471
0.2076 0.2374 0.2465 0.2481 0,2288
$0.7756 $0.7828 $0.8082 $0.7392
DuPage County ............................
DuPage County Forest Preserve District...
DuPage Airport Authority .................
Naperville Township(2) ...................
Naperville Park District .................
Unit School District 204 .................
Community College District Number 502 ....
Total(3) ...............................
0.1773 0.1929 0.2040 0.2057 0.1971
0.1414 0.1542 0.1657 0.1691 0.1622
0.0169 0.0168 0.0178 0.0196 0.0188
0.0894 0.0812 0.0900 0.0660 0.0738
0.2969 0.3148 0.3358 0.3397 0.3317
5.2200 5.7047 5.9601 6.0210 5.8505
0.2495 0.2681 0.2956 0.2975 0.2786
$6.9429 $7.5083 $7.8518 $7.9268 $7.6519
Notes: (1) Source: DuPage County Clerk.
(2) Includes Road and Bridge. (3) Representative tax rate is for Tax Code No 7030 which represents the largest tax code of the
City's 2015 EAV; the latest data available.
14
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
Tax Extensions and Collections(I)
Levy Collection
Year Year
2010 .............. 2011 .....
2011 .............. 2012 .....
2012 .............. 2013 .....
2013 .............. 2014 .....
2014 .............. 2015 .....
2015 .............. 2016 .....
Note' (1) Source" the City.
Tax Total
Extensions Collected Percent
$49,651,487 $49,340,763 99.37%
48,317,459 47,951,662 99.24%
47,102,010 46,370,352 98.45%
46,393,422 46,183,534 99.55%
48,431,824 48,156,387 99.43%
46,260,521 ----IN COLLECTION----
Principal Taxpayers(I)
Taxpayer Name Type of Property NS-MPG Inc ............................... Alcatel Lucent Building .........................
Agellan Warrenville LP ................... Real Property ...................................
BP-hnoco Oil Company ..................... Oil Company Corporate Campus ....................
Tellabs Inc .............................. Optical Solutions ...............................
Ondeo Nalco Center ....................... Water Treatment Center ..........................
Amli Residential .........................
Real Property ...................................
ING Clarion .............................. Real Property ...................................
UBS Realty Investors LLC ................. Real Property ...................................
BMO Harris Bank Corp. Re ................. Real Property ...................................
TGM McDowell Place LLC ................... Apartment Complex ............................... Total ...................................................................................
10 Largest Taxpayers as Percent of Total ................................................
2015 EAV (2)
$ 29,394,820
16,644,500
16,541,090
15,189,280
14,392,340
14,225,244 14,119,240
12,860,110 12,519,660
11,838,820 $157,725,104
2.51%
Notes: (1)
(2)
Source: DuPage and Will County Clerks.
Every effort has been made to seek out and report the largest taxpayers. However, many of the
taxpayers listed contain multiple parcels and it is possible that some parcels and their
valuations have been overlooked. The 2015 EAM is the most current available.
REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES
Tax Levy and Collection Procedures
Local assessment officers determine the assessed valuation of taxable real property and railroad property not
held or used for railroad operations. The Illinois Department of Revenue (the "Department") assesses certain other
types of taxable property, including railroad property held or used for railroad operations. Local assessment officers'
valuation determinations are subject to review at the county level and then, in general, to equalization by the
Department. Such equalization is achieved by applying to each county's assessments a multiplier determined by the
Department. The purpose of equalization is to provide a common basis of assessments among counties by adjusting assessments toward the statutory standard of 33-1/3 % of fair cash value. Farmland is assessed according to a statutory formula which takes into account factors such as productivity and crop mix. Taxes are extended against the assessed
values after equalization.
15
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
Property tax levies of each taxing body are filed in the office of the county clerk of each county in which
territory of that taxing body is located. The county clerk computes the rates and amount of taxes applicable to taxable
property subject to the tax levies of each taxing body and determines the dollar amount of taxes attributable to each
respective parcel of taxable property. The county clerk then supplies to the appropriate collecting officials within the
county the information needed to bill the taxes attributable to the various parcels therein. After the taxes have been
collected, the collecting officials distribute to the various taxing bodies their respective shares of the taxes collected.
Taxes levied in one calendar year are due and payable in two installments during the next calendar year. Taxes that are
not paid when due, or that are not paid by mail and postmarked on or before the due date, are subject to a penalty of
1-1/2% per month until paid. Unpaid property taxes, together with penalties, interest and costs, constitute a lien
against the property subject to the tax.
Exemptions
An annual General Homestead Exemption provides that the EAV of certain property owned and used for
residential purposes ("Residential Property") may be reduced by the amount of any increase over the 1977 EAV, up to
a maximum reduction of $6,000 for tax year 2012 and thereafter.
The Homestead Improvement Exemption applies to Residential Properties that have been improved or rebuilt in
the 2 years following a catastrophic event. The exemption is limited to $45,000 through December 31, 2003, and
$75,000 per year beginning January 1, 2004 and thereafter, to the extent the assessed value is attributable solely to such
improvements or rebuilding.
The Senior Citizens Homestead Exemption annually reduces the EAV on residences owned and occupied by senior citizens. Beginning with tax year 2013, the maximum exemption is $5,000.
A Senior Citizens Assessment Freeze Homestead Exemption freezes property tax assessments for homeowners,
who are 65 and older and receive a household income not in excess of the maximum income limitation. The maximum
income limitation is $35,000 for years prior to 1999, $40,000 for assessment years 1999 through 2003, $45,000 for
assessment years 2004 and 2005, $50,000 from assessment years 2006 and 2007 and for assessments year 2008 and
after, the maximum income limitation is $55,000. In general, the Senior Citizens Assessment Freeze Homestead
Exemption limits the annual real property tax bill of such property by granting to qualifying senior citizens an
exemption as to a portion of the valuation of their property. For those counties with a population of less than
3,000,000, the Senior Citizens Assessment Freeze Homestead Exemption is as follows: through assessment year 2005
and for assessment year 2007 and later, the exempt amount is the difference between (i) the current EAV of their
residence and (ii) the base amount, which is the EAV of a senior citizen's residence for the year prior to the year in
which he or she first qualifies and applies for the Exemption (plus the EAV of improvements since such year). For
assessment year 2006, the amount of the Senior Citizens Assessment Freeze Homestead Exemption phases out as the
amount of household income increases. The amount of the Senior Citizens Assessment Freeze Homestead Exemption is
calculated by using the same formula as above, and then multiplying the resulting value by a ratio that varies according to household income.
The Natural Disaster Homestead Exemption (the "Natural Disaster Exemption") applies to homestead
properties containing a residential structure that has been rebuilt following a natural disaster occurring in taxable year
2012 or any taxable year thereafter. A natural disaster is an occurrence of widespread or severe damage or loss of
property resulting from any catastrophic cause including but not limited to fire, flood, earthquake, wind, or storm. The
Natural Disaster Exemption is equal to the equalized assessed value of the residence in the first taxable year for which
the taxpayer applies for the exemption minus the base amount. To be eligible for the Natural Disaster Exemption, the
residential structure must be rebuilt within two years after the date of the natural disaster, and the square footage of the
rebuilt residential structure may not be more than 110% of the square footage of the original residential structure as it
existed immediately prior to the natural disaster. The Natural Disaster Exemption remains at a constant amount until
the taxable year in which the property is sold or transferred.
16
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
Another exemption available to disabled veterans operates annually to exempt up to $100,000 of the assessed
valuation of property owned and used exclusively by such veterans or their spouses for residential purposes. Also, certain property is exempt from taxation on the basis of ownership and/or use, such as public parks, not-for-profit schools and public schools, churches, and not-for-profit hospitals and public hospitals. However, individuals claiming exemption under the Disabled Persons' Homestead Exemption or the Disabled Veterans Standard Homestead
Exemption cannot claim the aforementioned exemption.
Furthermore, beginning with assessment year 2007, the Disabled Persons' Homestead Exemption provides an
annual homestead exemption in the amount of $2,000 for property that is owned and occupied by certain persons with a
disability. However, individuals claiming exemption as a disabled veteran or claiming exemption under the Disabled
Veterans Standard Homestead Exemption cannot claim the aforementioned exemption.
In addition, the Disabled Veterans Standard Homestead Exemption provides disabled veterans an annual
homestead exemption starting with assessment year 2015 and thereafter. Specifically, (i) those veterans with a service-
connected disability of 30 % or more but less than 50% are granted an exemption of $2,500, (ii) those veterans with a
service-connected disability of 50% or more but less than 70% are granted an exemption of $5,000 and (iii) if the
veteran has a service-connected disability of 70% or more then the property is exempt from taxation under the code.
Furthermore, the veteran's surviving spouse is entitled to the benefit of the exemption, provided that the spouse has
legal or beneficial title of the homestead, resides permanently on the homestead and does not remarry. However, individuals claiming exemption as a disabled veteran or claiming exemption under the Disabled Persons' Homestead
Exemption cannot claim the Disabled Veterans Standard Homestead Exemption.
Beginning with assessment year 2007, the Returning Veterans' Homestead Exemption is available for property owned and occupied as the principal residence of a veteran in the assessment year the veteran returns from an armed
conflict while on active duty in the United States armed forces. This provision grants a homestead exemption of
$5,000, which is applicable in all counties. In order to apply for the Returning Veterans' Homestead Exemption, the
individual must pay real estate taxes on the property, own the property or have either a legal or an equitable interest in
the property, "or a leasehold interest of land on which a single family residence is located, which is occupied as a
principle residence of a veteran returning from an armed conflict involving the armed forces of the United States who
has an ownership interest therein, legal, equitable or as a lessee, and on which the veteran is liable for the payment of
property taxes." Those individuals eligible for the Returning Veterans' Homestead Exemption may claim the Returning Veterans' Homestead Exemption, in addition to other homestead exemptions, unless otherwise noted.
Property Tax Extension Limitation Law
The Property Tax Extension Limitation Law (the "Limitation Law") limits the amount of the annual increase in
property taxes to be extended for certain Illinois non-home rule units of government. In general, the Limitation Law
restricts the amount of such increases to the lesser of 5 % or the percentage increase in the Consumer Price Index during the calendar year preceding the levy year. Currently, the Limitation Law applies only to and is a limitation upon all
non-home rule taxing bodies in Cook County, the five collar counties (DuPage, Kane, Lake, McHenry and Will) and
several downstate counties.
Home rule units, including the City, are exempt from the limitations contained in the Limitation Law. If the
Limitation Law were to apply in the future to the City, the limitations set forth therein will not apply to any taxes levied
by the City to pay the principal of and interest on the Bonds. See "DESCRIPTION OF THE BONDS" herein.
17
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
Illinois legislators have introduced several proposals to modify the Limitation Law, including freezing property taxes and extending tax caps to all taxing bodies (including home rule units) in the State (the "Property Tax Freeze
Proposal"). Specifically, Senate Bill 318 passed the Illinois Senate on August 4, 2015. This legislation includes,
among other items, a State-wide property tax freeze for levy years 2016 and 2017 for taxing districts located in counties
other than Cook County and levy years 2017 and 2018 for taxing districts located in Cook County. If the Property Tax
Freeze Proposal or similar legislation were to become law, such reform may have a impact on the finances of the City and the ability of the City to issue non-referendum bonds. The City cannot predict whether, or in what form, any
change to the Limitation Law, including the Property Tax Freeze Proposal, may be enacted into law, nor can the City predict the effect of any such change on the City's finances.
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 tbr, a taxing district to 105 % of the amount of taxes extended in the preceding year
unless specified notice, hearing and certification requirements are met by the taxing body. The express purpose of the
Law is to require published disclosure of, and hearing upon, an intention to adopt a levy in excess of the specified levels.
FINANCIAL INFORMATION
Investment and Cash Management Policy
The City has adopted a comprehensive Investment and Cash Management Policy (the "Policy") addressing the
administration of all funds except those restricted by specific ordinances. Examples of funds not subject to the Policy are debt service and reserve funds which are subject to limitations set forth in the bond ordinances authorizing the
issuance of the related bonds.
The City Manager has delegated the responsibility of management of the Policy to the Director of Finance. In
addition the Financial Advisory Board (the "FAB") which is appoimed by the City Council will undertake specific tasks
such as reviewing the Policy as assigned by the Mayor and City Council. The Director of Finance provides an
investment report to FAB quarterly.
The City's investment objective as summarized in the Policy is to preserve capital, provide liquidity, and
maximize investment income. Further, the Policy establishes a standard of prudence which states the "Investments
shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and
intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the
probable safety of their capital as well as the probable income to be derived."
The city contracts with financial institutions to provide investments. In order to protect the City from the
failure of any financial institutions, the City requires full collateralization of all City investments in accordance with the
City's collateral agreement. The objective with all investments is to maximize returns. In order to maximize returns,
funds should be kept at the money managers and only a minimum amount of cash should be on hand. The minimum
amount of cash will be used to provide adequate short term funding for payroll and accounts payable. However, the
maximum that will be held is $22 million.
The Policy requires that liquidity in the portfolio be maintained to meet operating needs based on cash
forecasts. Repurchase agreements can be used to provide liquidity and maintain investment returns. The maximum
maturity for the City investments shall be twenty years, except for CMO's whose average life may not exceed ten years
at 100 PSA. The average maturity of the total portfolio shall not exceed five years, unless otherwise recommended by the professional investment advisors.
18
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
Financial Reports
The City's financial statements are audited annually by certified public accountants. The City's financial
statements are completed on a modified accrual basis of accounting consistent with generally accepted accounting principles applicable to governmental entities. See APPENDIX A for more detail.
No Consent or Updated Information Requested of the Auditor
The tables contained in this "FINANCIAL INFORMATION" section (the "Excerpted Financial Information") are from the audited financial statements of the City, including the audited financial statements for the fiscal year ended
April 30, 2015 (the "2015 Audit"), which was approved by formal action of the City Council and attached to this Final
Official Statement as APPENDIX A. The City has not requested the Auditor to update information contained in the
Excerpted Financial Information or the 2015 Audit; nor has the City requested that the Auditor consent to the use of the
Excerpted Financial Information or the 2015 Audit in this Final Official Statement. Other than as expressly set tbrth in
this Final Official Statement, the financial intbrmation contained in the Excerpted Financial Information and 2015 Audit
has not been updated since the date of the 2015 Audit. The inclusion of the Excerpted Financial Information and 2015
Audit in this Final Official Statement in and of itself is not intended to demonstrate the fiscal condition of the City since
the date of the 2015 Audit. Questions or inquiries relating to financial information of the City since the date of the
2015 Audit should be directed to the City.
Summary Financial Information
The following tables are summaries and do not purport to be the complete audits, copies of which are available
upon request. See APPENDIX A for the City's 2015 Audit.
19
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
Statement of Net Assets/Position
Governmental Activities
(Amounts Expressed in 000's)
ASSETS:
Cash and Investments .........................
Receivables, net .............................
Due from Other Governments ...................
Due from Other Funds .........................
Internal Balances ............................
Inventories ..................................
Prepaids .....................................
Net Pension Assets ...........................
Capital Assets Not Being Depreciated .........
Capital Assets Being Depreciated, Net of
Depreciation ................................
Total Assets ...............................
DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refunding ................
Total Deferred Outflows or Resources .......
Total Assets and Deferred Outflows of
Resources .................................
LIABILITIES:
Accounts Payable .............................
Accrued Interest Payable .....................
Due to Other Governments .....................
Unearned Revenue .............................
Long Term Liabilities:
Due Within One Year .........................
Due In More Than One Year ...................
Total Liabilities ............................
DEFERRED INFLOWS OF RESOURCES
Property Taxes ...............................
Total Deferred Inflows or Resources ........
Total Liabilities and Deferred Inflows of
Resources .................................
NET POSITION:
Invested in Capital Assets, Net of Related Debt
Restricted ...................................
Unrestricted .................................
Total Net Position .........................
Audited As of April 30
2011 2012 2013 2014 2015
$ 64,121 $ 61,820 $ 65,306 $ 65,754 $ 64,196
42,120 40,345 37,829 37,138 38,612
13,878 15,380 12,864 12,051 12,076
0 0 0 0 3,366
(698) (688) (44) 514 (5)
318 294 355 368 331
1,185 1,057 0 0 0
1.542 1,600 1,645 7.678 8,702
239.759 236,603 239,527 244.170 253.460
263,323
$630,996
$ 1.413
1,413
312,058 294,286 277,534 $674,283 $650,697 $635,016
$ 0 $ 0 $ 1,560
0 0 1,560
$674.283 $650,697 $636,576 $632,409
250,852 $631,590
$ 1,267
1,267
$632,857
$ 17,741 $ 16,328 $ 20,370 $ 25,726 $ 20,321
1,749 1,680 1,459 1,475 1,678
259 203 223 827 141
39,997 37,291 0 0 3,116
12.943 15,292 12,669 12,460 15,225
118,887 105,996 100,692 100,004 108,800 $191,576 $176.790 $135.413 $140,492 $149,281
$ 32,584 $ 0 $ 0 $ 33, 392
0 0 33,392
$191,576 $176,790 $168,805
32,584
$173,076
$ 34,397
34,397
$183,678
$446,569 $427. 459 $419,148 $412, 387 $409,027 5. 129 6,031 6, 787 8,042 9,623
31,009 40, 417 41,836 38, 904 30, 529
•482 r 707 $473 r
907 :•467,771 •;459.333 •449, 179
20
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
Statement of Activities
Net (Expenses) Revenues and Changes in Net Assets
Functions/Programs
Primary Government
(Amounts Expressed in 000's)
Governmental Activities(I) General Government
...........................
Physical Environment .........................
Public Safety ................................
Culture and Recreation .......................
Transportation ...............................
Interest on Long Term Debt ...................
Total Governmental Activities ..............
Audited for the Fiscal Year Ending April 30
2011 2012 2013 2014 2015
$ (2, 102) $ (5, 203) $ (6, 377) $ (7, 384)
(5,499) (6,528) (6,287) (5,998) (53, 967) (56,046) (55, 385) (57,982)
(9, 809) (7, 605) (7,484) (8, 776)
(31,422) (42,246) (40, 162) (40, 409)
(4, 156) (4, 308) (3, 952) (3, 590)
$(106,955) $(121,936) $ (119, 647) $(124,139)
$ (7, 680)
(5, 742)
(60, 050)
(7, 804)
(36, 837)
(3,991) $ (122, 104)
General Revenues
Taxes
Property .................................... $ 39,464 $ 38,479 $ 36,227 $ 33,639 Utility ..................................... 16,390 16,580 16,604 16,993 Sales and Use
............................... 28,600 30,610 32,263 34,498 State Income
................................ 11,271 11,581 12,784 13,823 Other
...................................... 10,592 10,677 12,006 13,391 Franchise Fees
............................... 2,020 2,141 2,437 2,455 Investment Income
............................ 2,766 3,130 1,190 (293) Transfers In (Out) ........................... (61) (62) 0 0
Total ...................................... $ 113,136 $ 113,511 $ 111,042 $ 114,506
$ 33,169
16,123
35,580 13,892
13,300 2, 538
1,925
(4, 577)
$ 111,950
Change in Net Position ....................... $ 4,087 $ (8,800) $ (6,136) $ (9,633) $ (10,154)
Net Position, May 1 ..........................
Net Position, April 30 .......................
$ 478, 620 :• 482, 707 $ 473, 907 $ 468, 966 (2) $ 459, 333
•; 482,707 •; 473r907 • 467,771 •, 459r333 :• 449T179
Notes:. (1) Expenses less program revenues of Charges for Services, Operating Grants and Capital Grants.
(2) As restated.
21
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
General Fund
Balance Sheet
(Amounts Expressed in O00's)
ASSETS:
Cash and Investments .........................
Receivables:
Property Taxes ..............................
Accrued Interest ............................
Accounts Receivable .........................
Customers:
Billed ......................................
Unbilled, estimated .........................
Less allowance for doubtful accounts .......
Inventory ....................................
Loans and Installments .......................
Due from Other Funds .........................
Due from Other Governments ...................
Total Assets ...............................
LIABILITIES:
Accounts Payable .............................
Acorued Wages and Benefits ...................
Due to Other Governmental Agencies ...........
Deposits .....................................
Other Payables ...............................
Total Liabilities ............................
DEFERRED INFLOWS OF RESOURCES
Property Taxes ...............................
Total deferred inflows of resources ........
Total liabilities and deferred inflows of
Resources .................................
Fund Balance:
Assigned ....................................
Nonspendable ................................
Unassigned ..................................
Total Fund Balance .........................
Total Liabilities, Deferred Inflows and
Fund Balance ..............................
2011 2012
Audited as of April 30
2013
$16,486 $20,420 $27,401
2014
$23,688
2015
$21,818
24,148 20,395 21,086 18,959 17,515
53 56 86 81 82
2,309 1,967 2,330 2,660 2,585
291 311 316 389 553
540 555 587 568 442
(1,803) (1,221) (682) (98) (54) 41 12 15 27 331
1,891 1,294 727 48 12
1,394 519 630 192 3,984
11,038 13,181 11,005 11,407 11,315
• • • $58,58___•3
$ 2,854 $ 2,678 $ 2,652 $ 3,584 $ 3,610
2,452 2,980 3,320 3,909 4,080
137 136 166 619 129
3,823 4,132 4,543 4,909 3,944
43 9 3 353 1
$ 9,309 $ 9,935 $10,684 $13,374 $11,764
$24,148 $20,395 $21,086 $18,959 $17,515 24,148 20,395 21,086 18,959 17,515
$33,457 $30,330 $31,770 $32,333 $29,279
$ 0 $ 0
75 343
25,513 28,961
}25,588 $29,304
$ 0 $ 0
149 122
22,782 27,037
•22, 931 •27, 159
$ 6,000
158
25,573
•31,731
22
C3"ty of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
General Fund
Revenues and Expenditures (Amounts Expressed in O00's)
REVENUES:
Property Taxes ...............................
Utility Tax ..................................
Sales and Use Tax ............................
State Income Tax .............................
Other Taxes ..................................
Licenses and Permits .........................
Fines and Forfeits ...........................
Investment Income ............................
Intergovernmental ............................
Charges for Services .........................
Fees .........................................
Miscellaneous ................................
Total Revenues .............................
EXPENDITURES:
General Government ...........................
Physical Environment .........................
Publi¢ Safety ................................
Culture and Recreation .......................
Transportation ...............................
Total Expenditures ...........................
Excess (Deficiency) of Revenues
Over Expenditures ..........................
Other Financing Sources (Uses):
Transfers In (Out), net ......................
Total Other Financing Sources (uses) .......
Net Change in Fund Balance ...................
Beginning Fund Balance .......................
Ending Fund Balance ..........................
2011
Audited for the Fiscal Year Ending April 30
2012 2013 2014 2015
$ 25,928 $ 24,242 $ 20,450 $ 20,964 $ 19,091
16,390 16,580 16,604 16,993 16,123
28,600 30,610 32,263 34,498 35,580
11,271 11,581 12,784 13,823 13,892
4,694 4,508 5,628 6,885 7,170
1,591 1,881 2,262 2,377 2,480
3,061 2,487 1,647 1,626 1,672 716 955 402 (155) 447
629 607 704 569 968
6,181 6,549 6,593 7,103 8,054
2,349 2,520 2,684 2,807 2,992
2,149 993 1,037 907 626
$103,559 $103,513 $103,058 $108,397 $109,095
$ 5,269 $ 5,118 $ 6,130 $ 6,929 $ 7,196
8,151 8,113 7,958 8,085 7,996
61,613 61,594 60,614 70,156 67,841
1,642 2,022 1,697 1,866 1,805
19,515 18,919 18,798 21,567 24,148 $ 96,190 $ 95,766 $ 95,197 $108,603 $108,986
$ 7, 747 $ 7, 861 $ (206) $ 7,369 $ 109
(5,376) (3,519) (3,289) (5,937) 3,607 $ (5,376) $ (3,519) $ (3.289) $ (5,937) $ 3,607
$ 1,993 $ 4,228 $ 4,572 $ (6,143) $ 3.716
20,938 ,,
22,931 27,159 31,731 25,588 $ 22,931 $ 27,159 $ 31,731 $ 25,588 $ 29.304
23
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
General Fund
Preliminary Budget and Unaudited Financial Information(/)
Budgeted Unaudited Budgeted
Eight Months Eight Months Twelve Months
Ending Ending Ending
12/31/2015 12/31/2015 12/31/2016
REVENUES:
Retail Sales Tax .............................. $21,964,701 $22.058.715
Property Taxes ................................ 17,514,800 17,512,064
Utility Taxes ................................. 9.843.700 10.108.050
State Income Tax .............................. 10.411.300 10.513.318
Charges for Service .......................... 6.501.601 7.010.502
Real Estate Transfer Tax ...................... 3.500.000 3.536.984
Other Taxes ................................... 1.754,318 2,079,537
Rental Income and Franchise Fees .............. 2.236.000 2.331.089
Internal Services and Transfers In ............ 2.918.302 1.924.496
Permits and Licenses .......................... 1,408,303 1.372.610
Fines and Fees ................................ 1,016,100 1.135.730
Food and Beverage Tax ......................... 630,000 627.511
Hotel/Motel Tax ............................... 771,701 852.737 Grants ........................................ 729.502 627,888
Other Revenues ................................ 208,002 291,433
Net Investment Income ......................... 281,200 (81,722) Total Revenues .............................. $81.689,530 $81.900,942
Operating Transfers In ........................ $ 11,802 $ 4,108 Total Revenues and lransfers In ............. $81,701,332 $81,905,050
EXPENDITURES:
Salaries and Wages ............................ $40. Benefits and Related .......................... 20,
Contracted Services ........................... 5,
Refuse Collection and Recycling ............... 4.
Supplies ...................................... 4,
Capital Outlay ................................ 1.
Internal Services .............................
Grants and Contributions to Others ............
Total Expenditures ............................ $78.
$ 33.874.500
20.712,569
16.370.000
14.500,000
12.455.950
4.600.000
3.166.000
3,079.400
2,984.133
2.478.086 1.664,800
1,470,000 1,270,000
714,325
441,500
235,500 $120,016,763
$ 75,000 $120.091.763
231,748 $40,738.822 $ 61,277,120
397,997 19.442,549 27,140,864
928,242 6,740.396 10,295,943
000,000 4.233.483 6.563,084
269.799 4,683,871 7.366.604
665,597 1,260,383 1,398,400
755,703 (532,956) (561,440)
970,499 885,639 1,584,909 219,585 $77,452,187 $115,065,484
Operating Transfer Out ........................ 5,343,943 5,343,943 Total Expenditures and Transfers Out
........ $83,563,528 $82.796,130
Revenues over (Under) Expenditures and Transfers ..............................
Note: (1) Source: The City.
5,018,617 $120,084,101
$(1,862. 196) $ (891,080) $ 7,662
Transition to a Calendar Year
The City has transitioned to a calendar year end, beginning with December 31, 2015. The budgeted figures
reported for the year ended December 31, 2015 represent the eight month period beginning after the City's previous fiscal year end date of April 30, 2015.
24
City of Naperville, DuPage and Will Counties, lllinois
General Obligation Bonds, Series 2016
EMPLOYEE RETIREMENT AND OTHER POSTEMPLOYMENT BENEFITS OBLIGATIONS
See APPENDIX D herein for a discussion of the City's employee retirement and other postemployment benefits obligations.
REGISTRATION, TRANSFER AND EXCHANGE
Registration and Record Date
The registered owner of a Bond will be deemed and regarded as the absolute owner thereof for the purpose of
receiving payment of, or on account of, the principal of, premium, if any, or interest theron and for all other purposes
whatsoever, and all such payments so made to such registered owner or upon his order shall be valid and effectual to
satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the City nor the
Bond Registrar will be affected by any notice to the contrary.
Interest on the Bonds will be paid to the registered owners of the Bonds appearing on the registration books of
the Bond Registrar as of the close of business on the 15 •h
day of the calendar month next preceding an interest payment date (the "Record Date").
Transfers and Exchanges
The transfer of Bonds will be registrable only upon the registration books maintained by the City for that
purpose at the principal corporate trust office of the Bond Registrar, by the registered owner thereof or by his attorney
duly authorized in writing, upon surrender thereof together with an instrument of transfer satisfactory to the Bond
Registrar and duly executed by the registered owner or his duly authorized agent. Upon such surrender for registration of transfer, the City will execute and the Bond Registrar will authenticate and deliver a new Bond or Bonds of any
authorized denominations, registered in the name of the transferee, and of the same aggregate principal amount,
maturity and interest rate as the surrendered Bond.
Bonds may be exchanged for an equal aggregate principal amount of Bonds of the same maturity and interest
rate and of any authorized denominations, upon surrender thereof as the principal corporate trust office of the Bond
Registrar with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner
or his duly authorized agent.
For every such exchange or registration of transfer of Bonds, the City or the Bond Registrar may make a
charge sufficient to reimburse it for any tax or other governmental charge required to be paid with respect to such
exchange or registration of transfer. No charge will be made in connection with such exchange or registration of
transfer to pay the cost of preparing each new Bond issued upon such exchange or registration of transfer.
25
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
TAX EXEMPTION
Summary of Bond Counsel Opinion
Katten Muchin Rosenman LLP, Bond Counsel, is of the opinion that under existing law, interest on the Bonds
is not includible in the gross income of the owners thereof for Federal income tax purposes. If there is continuing compliance with the applicable requirements of the Internal Revenue Code of 1986 (the "Code"), Bond Counsel is of
the opinion that interest on the Bonds will continue to be excluded from the gross income of the owners thereof for
Federal income tax purposes. Bond Counsel is further of the opinion that the Bonds are not "private activity bonds"
within the meaning of Section 141(a) of the Code. Accordingly, interest on the Bonds is not an item of tax preference for purposes of computing individual or corporate alternative minimum taxable income. However, interest on the Bonds
is includible in corporate earnings and profits and therefore must be taken into account when computing corporate alternative minimum taxable income for tax purposes of the corporate alternative minimum tax. Interest on the Bonds
is not exempt from State of Illinois income taxes.
The Code contains certain requirements that must be satisfied from and after the date of issuance of the Bonds.
These requirements relate to the use and investment of the proceeds of the Bonds, the payment of certain amounts to the
United States, the security and source of payment of the Bonds and the use of property financed with the proceeds of
the Bonds. The City has covenanted in the Bond Ordinance to comply with these requirements.
Bonds Purchased at a Premium or a Discount
The difference (if any) between the initial price at which a substantial amount of each maturity of the Bonds is
sold to the public (the "Offering Price") and the principal amount payable at maturity of such Bonds is given special treatment for Federal income tax purposes. If the Offering Price is higher than the maturity value of a Bond, the
difference between the two is known as "bond premium"; if the Offering Price is lower than the maturity value of a
Bond, the difference between the two is known as "original issue discount".
Bond premium and original issue discount are amortized over the term of a Bond on the basis of the owner's
yield from the date of purchase to the date of maturity, compounded at the end of each accrual period of one year or
less with straight line interpolation between compounding dates, as provided more specifically in the Income Tax
Regulations. The amount of bond premium accruing during each period is treated as a reduction in the amount of tax-
exempt interest earned during such period and is subtracted from the owner's tax basis in the Bonds The amount of
original issue discount accruing during each period is treated as interest that is excludable from the gross income of the
owner of such Bonds for Federal income tax purposes, to the same extent and with the same limitations as current
interest, and is added to the owner's tax basis in the Bonds. A Bond's adjusted tax basis is used to determine whether,
and to what extent, the owner realizes taxable gain or loss upon disposition of the Bonds (whether by reason of sale,
acceleration, redemption prior to maturity or payment at maturity of the Bonds).
Owners of Bonds should consult their own tax advisors with respect to the state and local tax consequences of
owning the Bonds. It is possible that under the applicable provisions governing the determination of state or local
income taxes, accrued interest on the Bonds may be deemed to be received in the year of accrual even though there will
not be a corresponding cash payment until a year later.
26
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
Exclusion From Gross Income Requirements
The Code sets forth certain requirements that must be satisfied on a continuing basis in order to preserve the
exclusion from gross income for Federal income tax purposes of interest on the Bonds. Among these requirements are
the following:
Limitations on Private Use. The Code includes limitations on the amount of Bonds proceeds that may be used
in the trade or business of, or used to make or finance loans to, persons other than governmental units.
Investment Restrictions. Except during certain "temporary periods," proceeds of the Bonds and investment
earnings thereon (other than amounts held in a reasonably required reserve or replacement fund, if any, or as
part of "minor portion") may generally not be invested in investments having a yield that is "materially higher" (1/8 of one percent) than the yield on the Bonds.
Rebate of Arbitrage Profit. Unless the City qualifies for one of several exemptions, earnings from the
investment of the "gross proceeds" of the Bonds in excess of the earnings that would have been realized if such
investments had been made at a yield equal to the yield on the Bonds are required to be paid to the United
States at periodic intervals. For this purpose, the term "gross proceeds" includes the original proceeds of the
Bonds, amounts received as a result of investing such proceeds, and amounts to be used to pay debt service on
the Bonds.
Covenants to Comply. The City has covenanted in the Bonds Ordinance to comply with the requirements of
the Code relating to the exclusion from gross income for Federal income tax purposes of interest on the Bonds.
Risks of Non-Compliance
In the event that the City fails to comply with the requirements of the Code, interest on the Bonds may become
includible in the gross income of the owners thereof for Federal income tax purposes retroactive to the date of issue. In
such event, the Bond Ordinance requires neither acceleration of payment of principal of, or interest on, the Bonds nor
payment of any additional interest or penalties to the owners of the Bonds.
Federal Income Tax Consequences
Pursuant to Section 103 of the Code, interest on the Bonds is not includible in the gross income of the owners
thereof for Federal income tax purposes. However, the Code contains a number of other provisions relating to the
treatment of interest on the Bonds which may affect the taxation of certain types of owners, depending on their
particular tax situations. Some of the potentially applicable Federal income tax provisions are described in general terms below. PROSPECTIVE PURCHASERS SHOULD CONSULT THEIR TAX ADVISORS CONCERNING THE
PARTICULAR FEDERAL INCOME TAX CONSEQUENCES OF THEIR OWNERSHIP OF THE BONDS.
27
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
CONTINUING DISCLOSURE
In the Bond Ordinance, the City has covenanted and agreed, for the benefit of the beneficial owners of the
Bonds, to provide certain financial information and operating data relating to the City within 210 days after the close of
the City's fiscal year (the "Annual Report"); and, in a timely manner not in excess of ten business days after the event,
to provide notices of the occurrence of certain enumerated events. The Annual Report will be filed by the City with the
Municipal Securities Rulemaking Board (the "MSRB") for disclosures on its Electronic Municipal Market Access
("EMMA") system. The information to be contained in the Annual Report will consist of the annual audited financial
statement of the City, and updated information with respect to the statements in the Final Official Statement contained
under the captions "Retailers' Occupation, Service Occupation and Use Tax", "DEBT INFORMATION", "PROPERTY ASSESSMENT AND TAX INFORMATION" and "FINANCIAL INFORMATION" (excluding Preliminary Budget and Unaudited Financial Information). Each annual audited financial statement will conform to
generally accepted accounting principles applicable to governmental units and will be prepared in accordance with
standards of the Governmental Accounting Standards Board. If the audited financial statement is not available, then an
unaudited financial statement will be included in the Annual Report and the audited financial statement will be filed
promptly after it becomes available. The notices of enumerated events and timely notice of any failure of the City to
file its Annual Report within the 210 day period will be filed by the City with the MSRB for disclosures on EMMA.
The City's undertaking with respect to enumerated events includes timely notice of the occurrence of any of the
following events with respect to the Bonds.
.
2.
3.
4.
5.
6.
,
8.
9.
10.
11.
12.
13.
14.
15.
Principal and interest payment delinquencies Non-payment related defaults, if material
Unscheduled draws on debt service reserves reflecting financial difficulties
Unscheduled draws on credit enhancements reflecting financial difficulties
Substitution of credit or liquidity providers, or their failure to perform 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 Modifications to the rights of security holders, if material
Debt calls, if material
Defeasances
Release, substitution or sale of property securing repayment of the securities, if material
Rating changes Tender offers
Bankruptcy, insolvency, receivership or similar event of the City* The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or
substantially all of the assets of the City, other than in the ordinary course of business, the entry into a
definitive agreement to undertake such an action or the termination of a definitive agreement relating to
any such actions, other than pursuant to its terms, if material
Appointment of a successor or additional trustee or the change of name of a trustee, if material.
*This event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the City in a proceeding under
the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over
substantially all of the assets or business of the Oty, 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 Oty.
28
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
The City has agreed to the foregoing undertakings in order to assist participating underwriters of the Bonds and
brokers, dealers and municipal securities dealers in complying with Securities and Exchange Commission Rule
15c2-12(b)(5) promulgated under the Securities Exchange Act of 1934. The City will provide the foregoing information for so long as Rule 15c2-12(b)(5) is applicable to the Bonds and the City remains an "obligated person" under the Rule with respect to the Bonds. No provision of the bond ordinance limits the remedies available to any
beneficial owner of the Bonds with respect to the enforcement of the continuing disclosure covenants of the City described above. Failure to comply with the continuing disclosure covenants will not constitute an event of default
under the Bond Ordinance.
The City may amend the continuing disclosure undertakings contained in the Bond Ordinance upon a change in
circumstances provided that (a) the change in circumstances arises from a change in legal requirements, law, or change in the identity, nature or status of the City or the type of business conducted by the City, (b) the undertakings, as
amended, would have complied with the requirements of Rule 15c2-12(b)(5) at the time of this offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances and (c) in the
opinion of nationally recognized bond counsel selected by the City, the amendment does not materially impair the
interests of the beneficial owners of the Bonds.
The City has failed to file certain financial information and operating data on a timely basis. While the audited
financial statements were prepared and completed in a timely manner, the City's comprehensive annual financial report ("CAFR") for fiscal years 2011 and 2012 were not filed on time with the MSRB for disclosure on EMMA. The fiscal
year 2011 filing was made on January 9, 2012, and the fiscal year 2012 filing was made on November 21, 2012.
OPTIONAL REDEMPTION
The Bonds due December 1, 2016-2025, inclusive, are non-callable. The Bonds due December 1, 2026-2035, are callable in whole or in part on any date on or after December 1, 2025, at a price of par plus accrued interest to the
redemption date. If less than all the Bonds are called, they shall be redeemed in such principal amounts and from such
maturities as determined by the District and within any maturity by lot.
LITIGATION
There is no litigation of any nature now pending or threatened restraining or enjoining the issuance, sale, execution or delivery of the Bonds, or in any way contesting or affecting the validity of the Bonds or any proceedings of the City taken with respect to the issuance or sale thereof. There is no litigation now pending, or to the knowledge of the City, threatened against the City that is expected to materially impact the financial condition of the City.
LEGAL MATTERS
Legal matters incident to the authorization, issuance and sale of the Bonds are subject to the unqualified approving opinion of Katten Muchin Rosenman LLP, Chicago, Illinois, Bond Counsel, whose approving opinion will
be delivered with the Bonds. Bond Counsel has reviewed the statements in this Final Official Statement appearing under the heading "TAX EXEMPTION" and is of the opinion that the statements contained under such heading are
accurate statements or summaries of the matters set forth therein and fairly present the information purported to be
shown. Except for the foregoing, however, Bond Counsel has not independently verified the accuracy or completeness of statements and information contained in the Final Official Statement and does not assume any responsibility of the
accuracy or completeness of such statements and information.
29
City of NaperviUe, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
The opinion of Bond Counsel and the descriptions of the tax law contained in this Final Official Statement are
based on statutes, judicial decisions, regulations, rulings and other official interpretations of law in existence on the date
the Bonds are issued. There can be no assurance that such law or the interpretation thereof will not be changed or that
new provisions of law will not be enacted or promulgated at any time while the Bonds are outstanding in a manner that
would adversely affect the value or the tax treatment of ownership of the Bonds.
FINAL OFFICIAL STATEMENT AUTHORIZATION
This Final Official Statement has been authorized for distribution to prospective purchasers of the Bonds. All
statements, information, and statistics herein are believed to be correct but are not guaranteed by the consultants or by the City, and all expressions of opinion, whether or not so stated, are intended only as such.
INVESTMENT RATINGS
Standard & Poor's, a Division of the McGraw-Hill Companies, New York, New York ("S&P"), has assigned the Bonds an investment rating of "AAA (Stable Outlook)"; and Moody's Investors Service, New York, New York
("Moody's', and together with S&P, the "Rating Agencies") has assigned the Bonds an investment rating of "Aaa".
The City has supplied certain information and material concerning the Bonds and the City to the Rating Agencies, including certain information and materials which may not have been included in this Final Official Statement, as part of its application for investment ratings on the Bonds. A rating reflects only the views of the rating agency assigning such rating and an explanation of the significance of such rating may be obtained from such rating agency. Generally, a rating service bases its rating on such information and material, and also on such investigations, studies and
assumptions that it may undertake independently. There is no assurance that such ratings will continue for any given period of time or that they may not be lowered or withdrawn entirely by such rating service if, in its judgment, circumstances so warrant. Any such downward change in or withdrawal of any such rating may have an adverse effect
on the secondary market price of the Bonds. An explanation of the significance of the investment ratings may be
obtained from the Rating Agency: Standard & Poor's Corporation, 55 Water Street, New York, New York 10041,
telephone 212-438-2000 and Moody's Investors Service, 7 World Trade Center at 250 Greenwich Street, New York,
New York 10007, telephone 212-553-1658.
DEFEASANCE AND PAYMENT OF BONDS
If the City shall pay or cause to be paid to the registered owners of the bonds, the principal, premium, if any,
and interest due or to become due thereon, at the times and in the manner stipulated therein and in this ordinance, then
the pledge of taxes, securities and funds hereby pledged and the covenants, agreements and other obligations of the City to the registered owners and the beneficial owners of the bonds shall be discharged and satisfied.
Any bonds or interest installments appertaining thereto, whether at or prior to the maturity or the redemption date of such bonds, shall be deemed to have been paid if (1) in case any such bonds are to be redeemed prior to the
maturity thereof, there shall have been taken all action necessary to call such bonds for redemption and notice of such
redemption shall have been duly given or provision shall have been made for the giving of such notice, and (2) there
shall have been deposited in trust with a bank, trust company or national banking association acting as fiduciary for
such purpose either (i) moneys in an amount which shall be sufficient, or (ii) "Federal Obligations" as defined below,
the principal of and the interest on which when due will provide moneys which, together with any moneys on deposit with such fiduciary at the same time for such purpose, shall be sufficient, to pay when due the principal of, redemption
premium, if any, and interest due and to become due on said bonds on and prior to the applicable redemption date or
maturity date thereof.
30
City of Naperville, DuPage and Will Counties, Illinois
General Obligation Bonds, Series 2016
The term "Federal Obligations" means (i) non-callable, direct obligations of the United States of America, (ii) non-callable and non-prepayable, direct obligations of any agency of the United States of America, which are
unconditionally guaranteed by the United States of America as to full and timely payment of principal and interest, (iii) non-callable, non-prepayable coupons or interest installments from the securities described in clause (i) or clause (ii) which are stripped pursuant to programs of the Department of the Treasury of the United States of America, or (iv)
coupons or interest installments stripped from bonds of the Resolution Funding Corporation.
UNDERWRITING
The Bonds were offered for sale by the City at a public, competitive sale on June 8, 2016. The best bid
submitted at the sale was submitted by Morgan Stanley, New York, New York (the "Underwriter"). The City awarded
the contract for sale of the Bonds to the Underwriter at a price of $65,126,911.70. The Underwriter has represented to
the City that the Bonds have been subsequently re-offered to the public initially at the yields or prices set forth in the
addendum to this Final Official Statement.
Morgan Stanley, parent company of Morgan Stanley & Co. LLC, an underwriter of the Bonds, has entered into
a retail distribution arrangement with Morgan Stanley Smith Barney LLC. As part of the distribution arrangement,
Morgan Stanley & Co. LLC may distribute municipal securities to retail investors through the financial advisor network
of Morgan Stanley Smith Barney LLC. As part of this arrangement, Morgan Stanley & Co. LLC may compensate
Morgan Stanley Smith Barney LLC for its selling efforts with respect to the Bonds.
MUNICIPAL ADVISOR
The City has engaged Speer Financial, Inc. as Municipal Advisor (the "Municipal Advisor") in connection with
the issuance and sale of the Bonds. The Municipal Advisor is an Independent Registered Municipal Advisor in
accordance with the rules of the Municipal Securities Rulemaking Board (the "MSRB"). The Municipal Advisor will
not participate in the underwriting of the Bonds. The financial information included in the Final Official Statement has
been compiled by the Municipal Advisor. Such information does not purport to be a review, audit or certified forecast
of future events and may not conform with accounting principles applicable to compilations of financial information.
The Municipal Advisor is not a firm of certified public accountants and does not serve in that capacity or provide accounting services in connection with the Bonds. The Municipal Advisor is not obligated to undertake any
independent verification of or to assume any responsibility for the accuracy, completeness or fairness of the information
contained in this Final Official Statement, nor is the Municipal Advisor obligated by the City's continuing disclosure
undertaking.
CERTIFICATION
We have examined this Final Official Statement dated June 8, 2016, for the $61,605,000 General Obligation Bonds, Series 2016, believe it to be true and correct and will provide to the purchaser of the Bonds at the time of
delivery a certificate confirming to the purchaser that to the best of our knowledge and belief information in the was at
the time of acceptance of the bid for the Bonds and, including any addenda thereto, was at the time of delivery of the
Bonds true and correct in all material respects and does not include any untrue statement of a material fact, nor does it
omit the statement of any material fact required to be stated therein, or necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading.
/s/ STEVE CHIRICO /s/
Mayor CITY OF NAPERVILLE
DuPage and Will Counties, Illinois
RACHEL MAYER
Finance Director Treasurer
CITY OF NAPERVILLE
DuPage and Will Counties, Illinois
31
APPENDIX A
CITY OF NAPERVILLE, DUPAGE AND WILL COUNTIES, ILLINOIS
FISCAL YEAR APRIL 30, 2015 AUDITED FINANCIAL STATEMENTS
0 Z
m• N
!mu
Z
m•
E•
Z
Z
Z Z
m•
Z
0
fT.
•8
r..
o
F.
.,• o :z:,
,,.,1
P_.
Introductory Section
,,IN
ell
Z o
,,,,,,
I=
z
il Z
[..
• oo [...,,,
•-8 z '"a =
,•.• z•
.•
ii •i !i!! ill iiii! i i : i : : : i : : : : : : : :
! :: ;i !i ii :ii !ilil : . . : : : : : � .
: : : : : :
i i i i : ! : i i : : : i ! i :
i i [ i : !• " " '
: : i ! i :
: i• . : : i : :
: e., • - . . .
'r,
S
•e .b•'
• • •"•
• •s • •• •.• •
• •'• "o •,.• • • • :• u•
,.., • r.• or•
•. •1 ,•.• r•
.• "o ¢40 i= .• • ,• •,,•
"•.•- • • o •.• •
z
_ o• z
g "•g.. .•-• ,,... "•
c.• 8 •o
� •.. • 8,,• <
•CC8• • f,.•., 0 0 • •
_•Swmo•
� •, .•,• •
ii!i•iiiiiiiii iill i i :::::::::::::: :::: ! ::::::::::::: iiii i
:
ii!iiiiiiii!ii !!!i • ::::,::::::::: ::::
. :
iiiiiiii•ii!!! :::: i
• ! i i • i i i i i i i ! ! ( ! i i • i!• i i ] i i i i i i i i i ! i i i i i
•:•
i!ii!! il !iii!! ..... i• ::::::::::::::
• ili ii• iiliii .....
•° r"
• 0
P•.=• �
-• =•
• • •.-• •
, �• •.-- •,.• .•-
,_•
•i5 8•._ •
e
E ""•
Z - ••
.- 9 o..•'- •
<'= £•.• •
. --_. • • -• _•
,... • .• •-• ,,-,
• o"• R.- • ,•
•Z•
o"•
.-8 •._• •.•
..•
:
©
_z
o
z •
� • o
0 •.
r-•.• .*-, •.. •,
�-. .• • ...• -•
• •..•
• m• m
•--•, "•
� •..•
.-• ,•.• o •
• • •'•.-•
% • • .
._,_
• • • •.=.,• ••
0 •,• .•. .,.., • •.• ;'•0• • '•
• •.•= •
• •= • •-•:• • '•
., • .• ..•
o_o •oo•.•
•-•
,... = ";,,.9, ° ,:,• .-
0 r•
- = ==.- =.=: o o.• •::•
r•
= •.•
i •.oZ
r• "• 2-•
0 • "•
•.•.•
._=• "o
'• 0
o•,• � - ,9.o •
• ...., •
•..,...• ••
eEE .=;
.• o•
•'•
�•,-,
•'• 0 • •
..+ • +.,.a
-. • -• .• .M
o ..= "• o,.,=
= o •.•
•• •._=
c•
0 z
<
©
O0
o
t.-..,
Z o
©
,>
C)
0
©
>
© >.,
Financial
Section
om.i
==,
Z .If(
�,=,
� pin .J.l
i,
o••
•'.- .
•
..% •
•.1• c•
.!i
.• 0
.
• ..•
.•1-.
•, eel
,,g•l •1 °'-
'.•,, •I
-, <:l•l � •1 •', •.; • • .•'..,
•,1 •1
• •1•
I
= "--'1 '" ,.1•1
� ,•,l
•2 NN
w c•-•
E
2
• •°
o
• ••
c
� • • .•
zo
z•
o "•. • • .o. •
..8 ° :•
=•
°.., #,,(
E
•.•,-• • • •
• .... •..• •.•
E"•O "'
•:•o• • • •
� •._• •,•
•# o..o o • ,- ,',=
�
=.. |
,t,
t,,,i •-.i
)-
•-•
•.•i •
-,,
.•
r•
&
CIT
Y O
F N
AP
ER
VIL
LE
, IL
LIN
OIS
Man
agem
ent’
s Dis
cuss
ion a
nd A
naly
sis
CIT
Y O
F N
AP
ER
VIL
LE
, IL
LIN
OIS
Man
agem
ent’
s Dis
cuss
ion
and A
naly
sis
The
foll
owin
g tab
le pr
esen
ts a
cond
ense
d sum
mar
y of C
hart
ges i
n Net
Posi
tion
as of
Apr
il 30
, 201
5 and
20
14:
Nor
ma!
Imp
acts
Rev
enue
sE
con
omic
Con
dit
ion -
whi
ch ca
n ref
lect
a de
clin
ing, st
able
or gr
owin
g eco
nom
ic en
viro
nmen
t and
ha
s a su
bsta
ntia
l im
pact on
prop
erty
, sal
es, i
ncom
e, ut
ilit
y tax
reve
nues
as w
ell a
s pub
lic s
pend
ing
habi
ts fo
r bui
ldin
g per
mit
s, el
ecti
ve us
er fe
es an
d vol
umes
of co
nsum
ptio
n.
Incr
ease
/Dec
reas
e in
the C
ity A
pp
rove
d R
ates
- w
hile
cert
ain t
ax ra
tes a
re se
t by s
tatu
te, th
e City
ha
s sig
nifi
cant
auth
orit
y to i
mpo
se an
d per
iodi
call
y inc
reas
e/de
crea
se ra
tes (
elec
tric
, wat
er/w
aste
wat
er,
impa
ct fe
es, b
uild
ing f
ees,
ambu
lanc
e fee
s, et
c.)
Ch
angi
ng P
atte
rns i
n In
terg
over
nm
enta
l an
d Gra
nt R
even
ue -
(bot
h rec
urri
ng an
d non
-rec
urri
ng)
- c
erta
in r
ecur
ring r
even
ue (
stat
e sh
ared r
even
ues, e
tc.) m
ay e
xper
ienc
e si
gnif
ican
t ch
ange
s pe
riod
ical
ly w
hile
non-
recu
rrin
g (or
one-
tim
e) gr
ants
are l
ess p
redi
ctab
le an
d oft
en di
stor
ting
in th
eir
impa
ct on
year
-to-
year
com
pari
son.
City
of N
apen
ille'
s Cha
nges
in Ne
t Pos
ition
E
nded
Apr
il 30
(in m
illio
ns)
For th
e Yi
Bus
ines
s-ty
peact
iviti
es
Tot
al pr
imar
y go
i'ern
men
tG
over
nmen
tal
act
iviti
es
2015
20
14
2015
20
1420
1520
14
Rev
enue
s;Pr
ogra
m rev
enue
s:C
harg
es fo
r serv
ices
Ope
ratin
g gra
nts a
nd
cont
ribul
ions
Cap
ital g
rant
s and
cont
ribut
ions
Gen
eral
reve
nues
:Pr
oper
ty tax
es
Otli
er tax
es
Oth
ers
184
201
198
$ 1.5
1418
6
78
7
1914
123
711
the
Cit
y’s
inve
stm
ent p
ortf
olio is
man
aged u
tili
zin
Mar
ket Im
pac
t on
Inve
stm
ent I
nco
me
inve
stm
ents o
f var
ious
mat
urit
ies. C
hang
es in
mar
ket c
ondi
tion
s wil
l cau
se in
vest
men
t inc
ome t
o fl
uctu
ate d
ue to
tlie r
elat
ed ap
prec
iati
on or
depr
ecia
tion
of th
ese a
sset
s.
3433
3334
7979
7979
52
52
195
345
334
152
139
193
Tot
al re
venu
esE
xpen
ses
Ch
ange
s in A
uth
oriz
ed P
erso
nn
el - c
hang
es i
n se
rvic
e de
man
d m
ay c
ause t
he C
ity
to
incr
ease
/dec
reas
e aut
hori
zed s
taff
ing.
Sal
ary
Incr
ease
(an
nu
al a
dju
stm
ents a
nd m
erit
) - th
e ab
ilit
y to a
ttra
ct a
nd re
tain h
uman a
nd
inte
llec
tual
reso
urce
s req
uire
s the
Cit
y to s
triv
e to a
ppro
ach a
com
peti
tive
sala
ry ra
nge p
osit
ion i
n the
m
arke
tpla
ce.
Infl
atio
n -
whi
le ov
eral
l inf
lati
on ap
pear
s to b
e rea
sona
bly m
odes
t, th
e Cit
y is a
maj
or co
nsum
er of
ce
rtai
n co
mm
odit
ies
such a
s su
ppli
es, f
uels a
nd p
arts
. Som
e fu
ncti
ons m
ay e
xper
ienc
e un
usua
l co
mm
odit
y-sp
ecif
ic in
crea
ses, (e
.g., f
uel p
rice
s)
Expe
nses
:G
ener
al go
vern
men
t Ph
ysic
al en
viro
nmen
t Pu
blic
safe
ty
Tran
spor
tatio
n C
ultu
re an
d rec
reat
ion
Inte
rest o
n lon
g-tt
Elec
tric
Wat
er an
d was
tew
ater
Bur
lingt
on co
mm
uter
park
ing
_
Tot
al ex
pens
es
_
Incr
ease
(Dec
reas
e) in
net po
sitio
n bef
ore tr
ansf
ers
99
99
99
967
7070
6756
5056
509
1010
94
debt
44
152
145
152
145
5151
5151
22
22
354
198
205
355
157
149
Cu
rren
t Yea
r Im
pac
ts(5
) (1
0)
(5)
(10)
(10)
(20)
Gov
ern
men
tal A
ctiv
itie
s. G
over
nmen
tal a
ctiv
itie
s dec
reas
ed th
e Cit
y’s n
et po
siti
on by
$10.
1 mil
lion
.(5
)5
Tran
sfer
s
(20)
(10)
(10)
Incr
ease
(Dec
reas
e) in
net po
sitio
n N
et po
sitio
n-be
ginn
ing
Net
posi
tion-
endi
ng
(10)
(10)
Rev
enue
460
909
929
459
469
450
Tot
al re
venu
es fr
om go
vern
men
tal a
ctiv
itie
s inc
reas
ed by
$13 m
illi
on (o
r 9.4
3%),
over
prio
r yea
r,
wit
h an i
ncre
ase o
f $7 m
illi
on co
min
g fro
m ad
diti
onal
capi
tal g
rant
s and
cont
ribu
tion
s; as
wel
l as a
$2
mil
lion
incr
ease
in in
vest
men
t inco
me.
909
450
450
899
$ 44
945
9
109
z
.• <
-
..• •
•.•, ..=
...., .-• •.
•.•
•.• •."• • •
_- •.•==
•- • •
r• ._.
-• o
,,,,1 F•
z•
o
• .'=-
•-•,
•2
sUOflllUJ Ul
$ ._• •
-g
•.• o
• • • •0;
.=,
-
•
•;• •' • •.•
r• • -•- • --• ...... o.•
•
< • •.,'o
.Q <
,.o
•:-7•! ii • •-•
_
� .o .•
,I} i•.
w-, ,.-, .,% r-• oc •
"• •'" (-..i
i°
ox
o• -!
,.• <
7
•o•
'•o•
E .• o •,•
-• o
.•
Ng-•N
•1• i • I •
..• • • • • •,-• z •
o •
• • ..• •,
,•
-• -• ..•
• • • o•;_ •• � =
•.
°1 °1
• •,
.•.
•-.'• • ..•
•• • •.
I•.I,: Jl
ir •I • ' • • ° '•I •I
!il •l
..b.
•ilt
• •°•-•:•J• •J •F'J'I • •l • •l•l 'l •l•l • •1 °
• •• •l •l •l•l i I i • ••lo•i•i I
J
•lllll•lllll I
I I I I• I i-- i
r r•,lr
•l '•'•l•l •
• .,a
•. .•
•1 •1•1 •
!°
-F
r•
< <
z
•/• • •
•/• ' t
•.•
•.•• •-• • • • .• • • ••
� .I ..•
e.•
z o
•
•. z
g
7
.3• ,_•
•--•
g._•
� =- 8
•
m
• -• ::0 • • •- • •- •
"
• z •-,
- •=_< • • Z Z r•
/
o
o
•, Z
o
• s<
• •.• •
• • •• g• • •.•°_
•.•
., • • • • •,•
•
• 8 >• •
• •.• •
••" •'• o>=:• • 9.
o m o
• • • •3
•o•
g.
o
z o
z
, o>= "3 ,.•
•-.• • • • -,.• .
•.• •:,• =• "• •
•. •'•
--• •=
o '-.• • • '.e •
•.• •1• • •-•' • o •
••#•
- 8.
•-• •
•.• • •-•
"• ._
.-• •
.• • .• •.•.• •"• • •-• •
o Z
� S
•- • o"
o
m ¢)
% e,,
• o •
z
H.
•J
o Z .a
• z
Z
o •8
._•,,•
•. E:•
•o •o---
• ••-• .• .• • •.-,:, •= •• • • •
•.• •. • o= .-
=•• •-•
g E R
•-• •-.• •
• • @ ._•§
• • .-
� - • -•
•-6 • • = �•
'- • '"'" • • ..gq •
•.-• •, L• • •
�
g • • • .• ••.•
.•-• .-•
e•g
"• .• • • � •.
b•
•.• •e
.. •
.•- 8 •
o z •
.-,.•
•. • o
•
•,, z
.• # :.>g •
•B.• •.-• .-- •, •
..•o• •o
'-•
F• •..'• • -• • o•
&,• •:• -5• •
o N
•e2
8 •"•.'R • .•-•
•• .----. •
• .-•
•.• • ,•,.-.
• "'a t::•
• • � •
-°
., •• = '•.•
o
.• o ..• "•
,,•
o• • .
-
.,• •-• •_•_ • • •:
_ -• •
• '.--- •
<
•. z
r,=
L•
8
r-'rz do"
� • • .•>• •
<
o
o
o
•'•
•,•_
•. z
c
•<
c
•. Z
©
E
•b
"-d
Z <
''• •'•i •,• i••o-o
•, •. • •. •. •,• •,• •, •, .
•i •i•.i r'l •',i • • • e• ,-
• •f-
/ "
.'Q.
"• ,'1
•,•
.•,
"" • • • -•
..•
•'. •'•.• Z, •"
,•_•°• •' •.,•.,. •.•.
,<<2 ,• <_
r,,.. • ,o • ,
,".
•.•
•,•-•
z
• • •r
Z *"
I V•
•- I• I•
I • • II•l Il•l
• • -•
•i I 'i •'• • • •
N
z
<._•
..• • N • E
o
I, 11
o .•
••
Z
• z
1 1!1
Z
o •
,- •
• .-
• • • • • .
• • • • • •
..
°.-•!•• • • .0
= o =
• '•
• .•
•• • • o•
• • •° •-•
•.•
<<m
o
•, • •
e
II
Z
z
e• •2
•= •
e•a• ! e
I
I I
N N "•
•o o • o o•o •
o Z
z
o
o
o
m
o
•a
s m
0 o"
o
o=
.5• .•.
g
o,-u, h
• • .•
• •" •a•, o.-• •. ,•-•aa•.•
i •--.•r•.•
•i••
r•
0
_ E
o <
Z
0
•. z
0
N
D. 8 o"
et t
• z
,• o
•
o <
Z
0 Z
0
..I • rJ
z
k.
la
Z
• • •,..• .
•g
-•• ;•.•
� -• o .•
I
o
o <
o
•,. z
t•
o
o
•. r+ o"
g m
z
o
5 o"
•o<
•, Z •,•
•,• • r-"
•g
o 7 •
G d
.• 6.•
- • ,,,-•
0 Z
Z o
o
'-o
•-• • • • • •'o •-•
•_•o•2• • • •.
•,o.• •-• e
o• • • '• • • •'• •
•J
.- •
Z
tl
z
L•
j•
J•
±
i
/ '!/!1
!11 '• "•"/•1•/• !• •1 ' •/•1 '
° i
' . ,=, o
•• • •. • •l! •
•i-• -• o -•
� •= -]
-
•I • ••
•.•.• •i...t.,.t•,;4
• •1 • •
• o •ir •••
•l • ..... o
•<
il ...... ox •, o•, u.• u-, r-q
"• r'•. z'--- v,• ,,o ',o ,,-•
u-• o o ,,o '• oo
= i
I r•, r-.- r-,.- • • oo
o •. u', o o o
m m e•,
}
• •'•
"N
i• •
•. .......
• •
•7 C•
] J• •o•o• ooooo•• il! I
• I
]
•-• •_ .-'• •:• !.•I
1 ........
•.•_•.il •. • ,•:
/
•t •°•-••l ' •-• ••[ •[• ••-•[•1 •°•°'°•l•l
�
j il ,! ,•i • <il •.• i
o
."
.• • •, •. •
i •-i,•. .._=
•o ._i.•.! ! •.:• •-. • _-.
.<&
..'• .•
•...i •• .,,•
o i i!• •
{I • • :• • •
•
-
t !• i I
w •
•1•11 • •l
{
,.•
g
,g
,w r-.. I",- • eQ
1 ,.¢
-
.... 2",
•,.• .
•. • .,•e-.r•,e•
.. '.
� •, a•, •- -• •1• la ,•. •-• ,• •.-
-
. ",.•.
,
• I •i •° •'•
i I+
J
J
•' • i
°°I
•. i i i I
i I Ii iii .•i ji!.
•iiJi � • lii
•..• • • '•
" '111
I I " i
o! •i •
i I ' ,• ii'
� •!•!
,•| • •
••
i •
oo
!h'
I ! ! i i i . i ! •.
=
•a8
'E
i•Z "
• •' !1
,•_ i I' o
.• • [-
(-4
ill
, , I
J
d
i °
• • -=
I
i ! i i
•JJ
•-' • •, •
! lii
i•i! I
i i!•-
r•
1 !I!I !il
-• °•
E
r•
i•J_ i l
;--=l
•• • i I
,.,•. •.•.
•I• • •. • •
•"
r•
on
-t 0
L•
o
,j,i
o •
...-.++
,++,
I
,,• = ,r;
<. •. i "•
t...• r',
tm
++ ++ • +
+ . ++++ +.,, '+ + m'•+'
+
+++'o•.-+" + _++++ +.++ o ° o+ ++r+, + '•' P-. + N+=---
•+.- P+ .... -
I
•.+•
m+mm
.-
:1 I l +1 ,.•++ ....
+-m
m +- .....
++ °+++l+P+ +
•"+'+ +=+ r-=+ ++'•' +
+
I
o
-- o
I il •
• •.• • .-
I I I I I !•. :
•NN,•NN•
•.•. ,
..
!1
<
u,l
°1 °t •,• •,•.•1 i •
•J
t
2
<
i
.=
< •
-I
......
I .....
!I �
�
=
Exh
ibit D
-14
Exh
ibit D-
13C
ITY
OF NA
PE
RV
ILL
E, IL
LIN
OIS
Dru
g For
feitu
re Fu
nd
Sch
edul
e of R
even
ues,
Expe
nditu
res,
and C
hang
es in
Fun
d Bal
ance
- Bud
get an
d Act
ual
Yea
r ende
d Apr
il 30.
2015
CIT
Y O
F NA
PE
RV
ILL
E, IL
LIN
OIS
W
ater
Stre
et TI
F Fu
nd
Sch
edul
e of R
even
ues,
Exp
end
itu
res,
and C
hang
es in
Fund
Bala
nce ~
Budg
et an
d Ac
tnal
Yea
r ende
d Apr
il 30
, 2015
Var
ianc
e wit
h F
inal
Budg
et
Pos
itiv
e (N
egat
ive)
Var
iance
wit
h
Fin
al Bu
dget
P
osi
tive
(Neg
ativ
e)
Fia
aiB
udge
tO
rigi
nal
Bud
get
Act
ual
Fin
alB
udget
Ori
gin
alB
ud
get
Act
ual
Rev
enue
s:N
et inv
estm
ent in
com
e (los
s)
Inie
rgov
cmin
enta
l
17,2
54(2
54.6
07)
17,2
5416
7,20
2$
Rev
enue
s:P
rope
rly t
axes
Net
inv
estm
ent in
com
e (lo
ss)
Tot
al re
venu
es
421,
809
421,
809
3,09
073
,090
10,0
2770
,000
9,00
070
,000
9.00
0(2
37,3
53)
1,02
718
4.45
642
1,80
942
1,80
9T
otal
reven
ues
Exp
endi
ture
s-pu
blic
safet
)':
Pro
fess
iona
l serv
ices
Ptu-
chas
e prop
errv
’ send
ees
Oth
er pu
rcha
sed s
ervi
ces
Sup
plie
s P
rope
rty
Iiue
nial
send
ees
Out
side
agen
cies
4,11
783
,117
79,0
0079
,000
7.69
727
.304
51.9
0110
0.67
4(2
0,64
2)
67,9
682,
451
9.20
63.
599
52.1
9985
.229
20,6
42
7,03
26,
549
16.9
0330
.903
104.
100
185,
903
16.9
0330
.903
104.
100
185,
903
Exp
endi
ture
s:
Gen
eral
gove
rnm
ent:
Pro
fess
iona
l serv
ices
Cap
ital
outl
ay
100,
000
(2,5
51,8
55)
3,34
33,
253,
455
103,
343
701,
600
103,
343
701,
600
(2.4
51,
85.5
)75
,000
9,00
0
75,0
009,
000
3,25
6,7
9880
4,94
380
4,94
3T
otal
expe
ndit
ures
Exc
ess (
def
icie
ncy
) of re
venu
es
over
expen
dit
ure
s23
7,35
318
4,45
642
1,80
9(2
,447,
738
)42
1,80
9,6
81)
{725
,943
)T
otal
expe
ndit
ures
Net
chan
ge in
fund
bala
nces
(725
.943
)$
Oth
er fin
anci
ng
New
bond
s issu
edF
und b
alan
ce, M
ay 1.
2014
Fund
bala
nce,
Apri
l 30, 20
156,
220,
000
403,
512
6,22
0,00
0
403,
512
$S
ale o
f capi
tal a
sset
s
See a
ccom
pany
ing in
depe
nden
t audi
tors
’ repo
rt.
4,17
5,77
43,
449,
831
687.
076
;,94
?)(7
25,9
4'3)
Net
chan
ge in
fund
bala
nces
£F
und b
alan
ce, M
ay I,
2014
F
und b
alan
ce, A
pril 30
, 2015
$ 4,
136,
907
See
acco
mpa
nyin
g ind
epen
dent
audit
ors
’ repo
rt.
(con
tinu
ed)
105
(con
tinu
ed)
104
t °l
L• r•
,<
P•
°C
-t
J I
i I I I
Exh
ibit D-
18E
xhib
it D
-17
CIT
Y O
F N
AP
ER
VIL
LE
, ILL
INO
IS
Spe
cial Sc
rvii
Sch
edul
e of R
even
ues,
Expe
ndit
ures
, and C
hang
es in
Fund
Bala
nce -
Budg
et an
d Act
ual
Yea
r end
ed Ap
ril 3
0, 20
15
CIT
Y O
F NA
PE
RV
ILL
E, IL
LIN
OIS
S
peci
al Se
rv ice
Area
K21 F
und
Sch
edul
e of R
even
ues,
Expe
ndit
ures
, and C
hang
es in
Fund
Bala
nce -
Budg
et an
d Act
ual
Yea
r end
ed A
pril 30
, 2015
Are
a #23
Fund
Var
iance
with
Fin
al Bu
dg
et
Pos
itiv
e (N
egat
ive)
Var
iance
wit
h F
inal
Budget
P
osi
tive
(Neg
ativ
e)
Fin
alB
udge
tO
rigin
al
Budget
Fin
alB
udget
Ori
gin
alB
ud
get
Act
ual
Act
ual
Rev
enue
s:N
et in
vest
men
t inco
me
Rev
enue
s:P
rope
rty ta
xes
Net
inve
stm
ent in
com
e (lo
ss)
Fee
s
(518
)(51
812,0
2613
,379
202,0
2623
,379
16,64
1
200,0
0010
,000
12,00
0
200,0
0010
,000
12,00
0(5
18)
(SIX
)T
otal
reve
nues
4,64
1E
xpen
ditu
res:
Deb
t serv
ice:
Pri
ncip
al
Inte
rest
20,0
4624
2,04
622
2,00
022
2,00
0T
otal
reve
nues
Exp
endi
ture
s - de
bt se
rvic
e:
Pri
ncip
al
Inte
rest
75,00
014
0,117
75,00
014
0,117
75,00
014
0,117
165,2
38 ■
61,95
416
5,238
62,94
816
5,238
62,94
899
42)
5,11
721
5,117
215,1
17T
otal
expe
ndit
ures
Exc
ess (
def
icie
ncy
) of re
venu
es
over
expe
ndit
ures
994
227,
192
228,
186
228,
186
Tot
al ex
pend
itur
es(5
18)
(215
.635)
(215
,117)
(215
.117)
21,04
014
,854
863,5
24(6
,186)
(6.1 S
O)N
et ch
ange
in fu
nd ba
lanc
es$
Oth
er fin
anci
ng us
e T
rans
fer in
215,1
1721
5,117
215,1
17F
und b
alan
ce. M
ay 1,
2014
F
und b
alan
ce, A
pril 30
, 201
587
8.37
8
(5 18
)(5
18,1
SN
et ch
ange
in fim
d bal
ance
sS
ee ac
com
pany
ing i
ndep
ende
nt au
dit
ors
’ repo
rt.
Fun
d bal
ance
. May
1, 20
14
Fun
d bal
ance
, Apr
il 30
, 2015
•S(5
18;
See
acco
mpa
nyin
g in
depe
nden
t audi
tors
’ repo
rt.
(con
tinu
ed)
109
(con
tinu
ed)
108
z •
m•
•i • •i • •
i
°
il I
i I
Exh
ibit D
-22
Exh
ibit D
-21
CIT
Y OF
NAP
ER
VIL
LE
, ILL
INO
IS
2013
0.0
Bond
Fund
CIT
Y OF
NAP
ER
VIL
LE
, ILL
INO
IS
2010
0.0
Bond
Fund
Sche
dule
of Re
venu
es, E
xpen
ditu
res,
and C
hang
es hi
Fund
Bala
nce -
Budg
et an
d Act
ual
ende
d Apn
l 30, 20
15
Sche
dule
of Re
venu
es, Ex
pend
iture
s, an
d Cha
nges
in Fu
nd Ba
lanc
e - Bu
dget
and A
ctua
l Y
ear en
ded A
pril 3
0, 20
1.5
Yi
Var
ian
ce wi
th
fin
al bu
dget
po
siti
ve
(neg
ativ
e)
Var
ianc
e wit
h fi
nal bu
dget
po
siti
ve
(neg
ativ
e)O
rigi
nal
budg
etF
inal
budg
etO
rigi
nal
budg
etF
inal
budg
etA
ctua
lA
ctua
l
Rev
enue
s:N
et inv
estm
ent in
com
eR
even
ues:
Net
inves
tmen
t inco
me
129,
698
129,
698
S10
0J15
100,
115
S
129,
698
129,
698
Tot
al rev
enue
s10
0,11
510
0,11
5T
otal
reven
ues
Exp
endi
ture
s:C
apita
l outla
yG
ener
al go
vern
men
t Pu
blic
safet
y C
ultu
re an
d i '
Trai
iS{)
orta
tk
Exp
endi
ture
s:C
apita
l outla
y T
rans
port
atio
n80
,419
429,
850
456,
303
2,01
6,29
0
iHO
AVh
(279
.c;47
'j(3
6G43
)19
9.394
163,0
5116
3,051
150,2
033%
.()00
1.83
9,543
150,
203
396,0
(X)
1.83
9.543
(30.
343)
199,3
9416
3,051
163,0
51'i'
olal
expe
nditu
res
'03;
reat
ion
299,
.509
1163
.051
)13
6,45
8N
et ch
ange
in fu
nd ba
hmee
s$
T)
2,98
2.86
22,
385,
746
2,38
5,74
6T
otal
expe
nditi
(136
.458
:Fu
nd ba
lanc
e. M
ay 1,
2014
Fu
nd ba
lanc
e, Ap
ril 30
, 2015
(467
.418
1i2
,385
,746
)(2
,853
,16^
:$
(.2.3
85,7
46)
Net
chan
ge in
fund
balan
ces
$2,
853,
164
Fund
bala
nce,
May
1, 20
14
Fund
bala
nce,
Apri
l 30, 20
15$
Sec ac
com
pany
ing in
depe
nden
t audi
tors
’ repo
rt.
See a
ccom
pany
ing in
depe
nden
t audi
tors
' repo
rt.
(con
tinue
d)11
3(c
ontin
ued)
112
i
0 ,•
•
. °• • � -•
•0•.•o • • .-
• ] • • •£ •-
! !L II lii1°l •i • • I• •
i
l!l l °! i
III
z
•i ..... ii!!
;•• •.•
"2
••
•.•.
i,i
i I 1 I
-• •.• i•.-• •-•.• .•-,• o•
,• • • •
•-•• • • •
g
E'- "2=
i'Jl
..........
•il •
I
.........
il •
'
,,D • r-.- �.,• o-, r'-- oo
o
=
,.= "•
;• o
� . =,•
•1• --
.|
!
l lil
•o.o,=• • "
•.•,
cl
N
e4 "• "
-- ,_
2.• •- • o•
I il i iI
i!! • • i •!
� •' •. • • •
] •
.• •,• •
.•.•
•, • •.•
•__• • • •.•
-•
•.••
<
N
• e•I• •.iI • • , ,
i•. o• • •I r -. ,
• • •
.
•
•_•o
•- • i•i °-i •E • -• •, •.•,
-•-• •
•,•
_•.• •.•. • •.
•,• • '•, •
m m •
Statistical
Section
m
Z
°•
°• "4•
7
o
<
<
I
.......
!l
o .-
E E
•.•o •-
= ••
,•o,.
.•.
• a
• •.•
.•'• •
011
•°•
'• • o .--'•
,•..• "• "•
I::a, •
•_,•_
o,.,.,
-"'2
•'•
8 •._
� -• •.• • ••
4
..• .• • •
• -• .•_ ._• • •
• •.•
•.-
•.• '•
•
� - !.•
• !•1•
•! •.1•
•1 !•1•
•.• •-I•
•-I •1•
° •i•i
il •]
i lii
z
""i
•' •1
• •1
•, •i•
•• • • ,• • -• ,•
, , ,•
....
,•-•
• ....
-..3 "S•'• •
-•i.•, • ,
= "•
• ••
••
• .•_•
• •,o• • • •;.•
• • •.,
o
× •
z • b•
�•
r•
U • A
i
z
•c
z
o
F.,
•• � ,- >•
>, o
•m
r,.o
'•. • .......... •. • • •••'•
•,• • •.
•• •
••• .o
....... • =
• •a
,••.•.•
•'•• • -
•
i• '
.•
i i
i ••i• • • •.•
;=
••
•,• • •..•
..•.
0
•elm•,• •.•
I
E
•_• •
g•
E
< z • •.
7 <
....... •--•,• o =
._= '.• .• .• • .�
,-..• •
g
.�
•.•.•• "• •. .•.•.s
- .•_ •
..• •-•'E •_.•< g
•" r-
.5, -'..
•r• •D
• a •
APPENDIX B
DESCRIBING BOOK-ENTRY-ONLY ISSUANCE
1. The Depository Trust Company ("DTC"), New York, New York, will act as securities depository for
the Bonds (the "Securities"). The Securities will be issued as fully-registered securities registered in the name of Cede
& Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC.
One fully-registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of such issue, and will be deposited with DTC.
2. DTC, the world's largest securities depository, is a limited-purpose trust company organized under the
New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of
the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934.
DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S, equity issues, corporate and
municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct
Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and
other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct
Participants include both U.S. and non-U.S, securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed
Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its
regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S, securities
brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard &
Poor's rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.
3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which
will receive a credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each
Security ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial
Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of
ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect
Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their
ownership interests in Securities, except in the event that use of the book-entry system for the Securities is
discontinued.
4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are
registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an
authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co.
or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual
Beneficial Owners of the Securities; DTC's records reflect only the identity of the Direct Participants to whose accounts
such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will
remain responsible for keeping account of their holdings on behalf of their customers.
B-1
5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of
significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to
the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative,
Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be
provided directly to them.
6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being
redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be
redeemed.
7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to
Securities unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual
procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy
assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Securities are credited
on the record date (identified in a listing attached to the Omnibus Proxy).
8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede &
Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit
Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or the
Paying Agent, on payable date in accordance with their respective holdings shown on DTC's records. Payments by
Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with
securities held for the accounts of customers in bearer form or registered in "street name," and will be the
responsibility of such Participant and not of DTC, the Paying Agent, or the City, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend
payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the
responsibility of the City or the Paying Agent, disbursement of such payments to Direct Participants will be the
responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct
and Indirect Participants.
9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its
Participant, to any Tender/Remarketing Agent, and shall effect delivery of such Securities by causing the Direct
Participant to transfer the Participant's interest in the Securities, on DTC's records, to any Tender/Remarketing Agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will
be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC's records
and followed by a book-entry credit of tendered Securities to any Tender/Remarketing Agent's DTC account.
10. DTC may discontinue providing its services as depository with respect to the Securities at any time by
giving reasonable notice to the City or the Paying Agent. Under such circumstances, in the event that a successor
depository is not obtained, Security certificates are required to be printed and delivered.
11. The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a
successor securities depository). In that event, Security certificates will be printed and delivered to DTC.
12. The information in this section concerning DTC and DTC's book-entry system has been obtained from
sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof.
B-2
APPENDIX C
PROPOSED FORM OF OPINION OF BOND COUNSEL
[TO BE DATED CLOSING DATE]
June 22, 2016
The City Council of the
City of Naperville, Illinois
Dear Members:
We have examined a record of proceedings relating to the issuance of $61,605,000 principal amount of General Obligation Bonds, Series 2016 (the "Bonds"), of the City of Naperville, a municipal corporation and a home rule unit of the State of Illinois. The Bonds are authorized and issued pursuant to the
provisions of Section 6 of Article VII of the Illinois Constitution of 1970 and the City of Naperville Municipal Code and by virtue of an ordinance adopted by the City Council of the City on May 17, 2016 and entitled:
"Ordinance Authorizing the Issuance of Not to Exceed $68,000,000 General Obligation Bonds of 2016 of the
City of Naperville, Illinois" (the "Bond Ordinance").
The Bonds are issuable in the form of fully registered bonds in the denominations of $5,000 or
any integral multiple thereof. Bonds delivered on original issuance are dated June 22, 2016. The Bonds mature
on December 1 in each of the following years in the respective principal amount set opposite each such year in
the following table, and the Bonds maturing in each such year bear interest from their date payable on
December 1, 2016 and semiannually thereafter on each June 1 and December 1 at the respective rate of interest
per annum set forth opposite such year:
Year Principal Amount Interest Rate
2016 $ 260,000 2.00%
2017 515,000 2.00
2018 3,855,000 2.00
2019 7,025,000 2.00
2020 6,385,000 2.00
2021 5,220,000 2.00
2022 5,540,000 2.00
2023 5,550,000 3.00
2024 5,975,000 3.00
2025 4,785,000 3.00
2026 3,800,000 3.00
2027 2,925,000 3.00
2028 3,170,000 3.00
2029 1,135,000 3.50
2030 775,000 3.50
2031 935,000 3.50
2032 970,000 3.50
2033 995,000 3.50
2034 1,030,000 3.50
2035 760,000 3.50
C-1
The Bonds maturing on or after December 1, 2026, are subject to redemption prior to maturity at
the option of the City, in such principal amounts and from such maturities as the City shall determine and by lot
within a single maturity, on December 1, 2025 and on any date thereafter, at a redemption price equal to the
principal amount thereof to be redeemed.
In our opinion, the Bonds are valid and legally binding general obligations of the City of
Naperville and the City is obligated to levy ad valorem taxes upon all the taxable property within the City for
the payment of the Bonds and the interest thereon without limitation as to rate or amount. However, the
enforceability of rights or remedies with respect to the Bonds may be limited by bankruptcy, insolvency or other
laws affecting creditors' rights and remedies heretofore or hereafter enacted.
We are of the opinion that under existing law, interest on the Bonds is not includable in the gross
income of the owners thereof for Federal income tax purposes. If there is continuing compliance with the
requirements of the Internal Revenue Code of 1986 (the "Code"), we are of the opinion that interest on the
Bonds will continue to be excluded from the gross income of the owners thereof for Federal income tax
purposes. We are further of the opinion that the Bonds are not "private activity bonds" within the meaning of
Section 141 (a) of the Code. Accordingly, interest on the Bonds is not an item of tax preference for purposes of
computing individual or corporate alternative minimum taxable income. However, interest on the Bonds is
includable in corporate earnings and profits and therefore must be taken into account when computing corporate alternative minimum taxable income for purposes of the corporate alternative minimum tax.
The Code contains certain requirements that must be satisfied from and after the date hereof in
order to preserve the exclusion from gross income for Federal income tax purposes of interest on the Bonds.
These requirements relate to the use and investment of the proceeds of the Bonds, the payment of certain
amounts to the United States, the security and source of payment of the Bonds and the use of the property financed with the proceeds of the Bonds. The City has covenanted in the Bond Ordinance to comply with these
requirements.
With respect to the exclusion from gross income for Federal income tax purposes of interest on
the Bonds, we have relied on the verification report of Grant Thornton LLP, certified public accountants,
regarding the computation of the arbitrage yield on the Bonds and of certain investments made with the
proceeds of the Bonds.
Interest on the Bonds is not exempt from Illinois income taxes.
Very truly yours,
C-2
APPENDIX D
EXCERPTS OF FISCAL YEAR 2015 AUDITED FINANCIAL STATEMENTS
RELATING TO THE CITY'S PENSION PLANS
.,q
o
- r,
Z -
Z
i-
N
o Z •
u•
e,l
• z
•.•.
°i
•g
E-,
D-1
i
Z
z e
;,, z
D-2
CIT
Y O
F N
AP
ER
VIL
LE
, IL
LL
NO
ISC
ITY
OF
NA
PE
RV
ILL
E, I
LL
INO
ISN
otes
to Fi
nanc
ial S
tate
men
tsN
otes
to Fi
nanc
ial S
tate
men
tsA
pril 30
, 201
5A
pril 30
,2015
(e)
Thre
e- Ye
ar Tr
end I
nfor
mat
ion
Fir
efig
hte
rs’
Pen
sion P
lan
Po
lice
Pens
ion
Pla
nN
etA
nn
ual
Per
cen
tag
e of A
PC
con
trib
ute
dY
ear
pen
sion
asse
tp
ensi
on
cost
(AP
C)
5,18
3,00
1(3
00,7
35)
271,
619
5,15
6,41
9(2
36,7
02)
213,
785
end
ing
Ann
ual r
equi
red c
ontr
ibut
ion
Inte
rest
on ne
t pen
sion
asse
t A
djus
tmen
t to an
nual
requ
ired
cont
ribu
tion
Ann
ual p
ensi
on co
st
3,88
9,12
810
9.9% $
164.
0%10
0.4%
5,13
3,50
24,
713,
303
4,31
3,30
6
4/30
/15
$P
olic
e Pen
sion
Pla
n3,
381,
450
362,
868
4/30
/14
4/30
/13
5,15
3,88
5
5,67
0,03
9
5,13
3,50
2
5,64
1,18
04,
812,
372
4,29
6,21
81,
282,
421
110.0
% $
16
1.3%
10
0.6%
5,15
3,88
54,
915
,974
4,67
3,41
1
4/30
/15
$4/
30/1
44/
30/1
3
Fire
fight
ers'
Pen
sion
Pla
nC
ontr
ibut
ions
mad
e
516,
154
507,
678
3,38
1,45
0
Incr
ease
in ne
t pen
sion
asse
t N
et pe
nsio
n ass
et. M
ay 1,
2014
N
et pe
asio
n ass
et, A
pril 30
, 201
5
4,29
6,21
8
4,81
2,37
23,
889,
128
(f)
Fun
ded s
tatu
s
The
fund
ed st
atus
of th
e thr
ee pl
ans a
s of D
ecem
ber 3
1, 20
14 fo
r IM
RF an
d as o
f Apr
il 30
, 201
5 for
the P
olic
e Pen
sion
Pla
n and
Fir
efig
hter
s’ P
ensi
on P
lan b
ased
on ac
tuar
ial v
alua
tion
s per
form
ed as
of
the s
ame d
ate, is
as fo
llow
s. T
he ac
tuar
ial a
ssum
ptio
ns u
sed
to d
eter
min
e the
fund
ed st
atus
of t
he
plan
s ar
e th
e sa
me
actu
aria
l ass
umpt
ions u
sed
to d
eter
min
e th
e em
ploy
er A
PC o
f the p
lans
di
sclo
sed i
n Not
e lO
-(d)
.
Em
ploy
er c
ontr
ibut
ions f
or F
Y 2
015
wer
e ba
sed
on t
he f
ollo
win
g ac
tuar
ial
valu
atio
n an
d as
sum
ptio
ns;
0 1as
Fir
efig
hte
rs’
Pen
sion
Pla
nP
olic
e Pen
sion
P
lan
U)
4/30
/201
4 E
ntry
age
Lev
el
perc
enta
ge
of p
ay, c
lose
d 19
year
s M
arke
t
4/30
/201
4 E
ntry
age
Lev
el
perc
enta
ge
of p
ay. c
lose
d 19
year
s M
arke
t
Act
uari
al va
luat
ion d
ate
Act
uari
al co
st m
etho
d A
mor
tiza
tion
met
hod
Illi
nois
Munic
ipal
Ret
irem
ent
Fir
efig
hte
rs'
Pen
sion
Pol
ice
Pen
sion
192,
796,
750
$ 18
5,33
8,04
8 14
0,79
4,60
5
Rem
aini
ng am
orti
zati
on pe
riod
A
sset
valu
atio
n met
hod
Act
uari
al as
sum
ptio
ns:
Inve
stm
ent r
ate o
f ret
urn
Pro
ject
ed sa
lary
incr
ease
s (in
clud
es in
flat
ion r
ate)
Infl
atio
n rat
e
Cos
t-of
-liv
ing a
djus
tmen
ts
Tie
r 1; C
ompo
unde
d T
ier 2
; Sim
ple
Mor
tali
ty R
ate A
ssum
ptio
n
$ 16
4,513
,934
$ 13
0,819
,215
Act
uari
al ac
crue
d lia
bili
ty
Act
uaii
al va
lue o
f pla
n ass
ets
Unf
unde
d act
uari
al ac
cnie
d lia
bili
ty
(UA
AL
)
Fun
ded r
atio
(act
uari
al
valu
e of p
lan a
sset
s/A
AL
)C
over
ed pa
yrol
l (ac
tive
plan
m
embe
rs)
UA
AL
as a
perc
enta
ge of
co
vere
d pay
roll
See th
e sc
hedu
les
of f
undi
ng p
rogr
ess
in tl
ie re
quir
ed s
uppl
emen
tary in
form
atio
n im
med
iate
ly
foll
owin
g the
note
s to f
inan
cial
stat
emen
ts fo
r add
itio
nal i
nfor
mat
ion r
elat
ed to
the f
unde
d sta
tus o
f th
e pla
ns.
141,
407,
899
43,9
30,1
4952
,002
,145
33,6
94,7
197.
0%7.
0%
5.0%
5.0%
76.3
%73
.0%
79.5
%3.
0%
17,1
65,8
6816
,365
,735
51,1
88,4
743.
0% pe
r yea
r 2.
0% pe
r yea
r3.
0% pe
r yea
r 2.
0% pe
r yea
r25
5.9%
317.
8%65
.8%
RP
2000
Mor
tali
tyT
able
RP
2000
Mor
tali
tyT
able
Con
trib
utio
n rat
es fo
r the
fisc
al ye
ar en
ded 4
/30/
2015
: C
ity
Pla
n mem
ber
33.0
3%
9.46
%34
.47%
9.91
%
o
z
a as
. • •"
•
� ;,-, "-• u•u4
Oo •
.•
,.,4 • •
•
o
•.• • •
,., .<
.•.• •_ •.• •
• o m • •
•- �
-
• i • • •-
o z
eq
o s
•.• =o• .-
• -•.- • • •-• •.•
• • .
.• o=
•.•
•-•'
i • •
w
•• o-•o
D-4
CIT
Y O
F N
AP
ER
VIL
LE
, ILL
INO
IS
Not
es to
Fina
ncia
l Sta
tem
ents
Apr
il 30
, 201
5
Exh
ibit p
,2C
ITV
OF NA
PE
RV
IU.F
,, UX
INO
IS
Illin
ois M
unic
ipal
Retir
emen
t Fund
Req
uire
d Sup
plem
enla
ry Inl
bnna
tion -
Sche
dule
of Fu
ndin
g Pro
gres
s A
pril 3
0. 20
15sh
ows w
heth
er th
e act
uari
al va
lue o
f pla
n ass
ets i
s inc
reas
ing o
r dec
reas
ing o
ver t
ime r
elat
ive t
o tlie
ac
tuar
ia] a
ccru
ed lia
bili
ties
for b
enef
its.
Unf
unde
dP
erce
ntag
e of
cove
red
payr
oll
{(V
a)/c
)
Act
uari
al ac
crue
d (A
sset
s In ex
cess
of)
liab
ility
(AA
L)
- Ent
ry Ag
e
Act
uari
al
valu
e of
asse
ts
Fun
ded
rati
oC
over
edpa
yrol
lA
AL
Act
uari
alva
luat
ion
date
(UA
.VL
)A
ctuar
ial M
ethods a
nd A
ssu
mp
tio
ns.
Pro
ject
ions
of be
nefi
ts fo
r fin
anci
al re
port
ing p
urpo
ses a
re ba
sed o
n the
subs
tant
ive p
lan (
the p
lan a
s un
ders
tood
by
the e
mpl
oyer an
d pl
an m
embe
rs) a
nd in
clud
e the
type
s of b
enef
its p
rovi
ded
at th
e ti
me o
f eac
h val
uati
on an
d the
hist
oric
al pa
tter
n of s
hari
ng of
bene
fit c
osts
betw
een t
he em
ploy
er an
d pl
an m
embe
rs to
that
poin
t. T
he ac
tuar
ial m
etho
ds an
d ass
umpt
ions
used
incl
ude t
echn
ique
s tha
t are
desi
gned to
redu
ce sh
ort-
term
vol
atil
ity
in a
ctua
rial a
ccru
ed li
abil
itie
s and
the
actu
aria
l val
ue o
f as
sets
, con
sist
ent w
ith t
he lo
ng-t
erm
pers
pect
ive o
f the c
alcu
lati
ons.
i£l
(m(b
-a)
(a)
65.8
2%59
.03%
71.2
5%74
.16%
66.3
7%65
.94%
$ 51
,188
,474
49,8
75,0
54
49,4
60,7
32
48,5
42.6
82
51,1
35,3
11
55,7
77,3
05
79.5
%80
.7%
75.9
%74
.6%
33,6
94.7
1929
,442
,622
35,2
41,5
3236
.001
,170
33,9
36.4
0736
,777
,190
164,
513,
934
152,
591,
142
146,
316,
122
141,
622,
166
141,
049.
233
139.
928.
523
12/3
1/20
14 S 1
30,8
19,2
15
12/3
1/20
13
12/3
1/20
12
12/3
1/20
11
12/3
1/20
10
12/3
1/20
09
123,
148,
520
111.
074,
590
105,
620.
996
107,
112,
826
103,
151,
333
73.7
%
See ac
com
pany
ing in
depe
nden
t audi
tors
’ repo
rt.
In th
e Apr
il 30
, 201
4 act
uari
a] va
luat
ion,
the e
ntry
age a
ctua
ria]
cost
met
hod w
as us
ed. T
he ac
tuar
ial
a,ss
umpt
ions in
clud
ed a 4
.00%
inve
stm
ent r
ate
of r
etur
n (n
et o
f adm
inis
trat
ive
expe
nses
) and
an
nual h
ealt
hcar
e co
st tr
end
rate o
f 7.5
0% in
itia
lly
and
5.50
% u
ltim
atel
y.
Bot
h ra
tes
mcl
ude
a 3,
00%
infl
atio
n as
sum
ptio
n. T
he a
ctua
rial v
alue
of a
sset
s was
not d
eter
min
ed a
s the
Cit
y has
not
adva
nce f
unde
d its ob
liga
tion
. The
pla
n’s
unfu
nded
actu
aria
l acc
rued
liab
ilit
y is b
eing
amor
tize
d as
open
basi
s. T
he re
mai
ning
amor
tiza
tion
peri
od at
Apr
ilan
0 1a l
evel
perc
enta
ge of
proj
ecte
d pay
roll on
an
30, 2
014,
was
30 ye
ars.
Dis
cret
ely P
rese
nte
d C
om
ponen
t Un
it-N
aper
vil
le Pu
bli
c Lib
rary
The
foll
owin
g is s
umm
ary
fund
fina
ncia
l inf
orm
atio
n fo
r the
Nap
ervi
lle P
ubli
c Lib
rary
(the
Lib
rary
) for
th
e fis
cal y
ear e
nded
Apr
il 30
, 201
5:
(12)
il +++°++
"o
N • o w •
• • L• I ®•'•°•�•
•= •
+l +
D-6
• •
•l o •
•
F•
I)-7
•" o• • °
='1"• .• •1•
•1..• •1• •1•
� ••
,j
MM•MMM
g.-
8
g
•J
D-8
z •
..=
LL •
L•
L•
i ,t• •
" �•
•
�•
= .•. .=.
•c.•
aO
• �'•
0
Z Z
•= .•
'.• ol
.|
.........
it i ,
.........
it,_
f•
[)-9
CITY OF NAPERVILLE, ILLINOIS
WATER STREET
TAX INCREMENT FINANCING DISTRICT FUND
REPORT ON COMPLIANCE
WITH PUBLIC ACT 85-1142
For the Year Ended
December 31, 2016
ATTACHMENTS K & LCITY OF NAPERVILLE WATER STREET TIF DISTRICTFY16 This report contains the acountant's reports on compliance for the fiscal year ended 12/31/16 and the prior eight month reporting ended 12/31/15.
CITY OF NAPERVILLE, ILLINOIS
WATER STREET
TAX INCREMENT FINANCING DISTRICT FUND
TABLE OF CONTENTS
Page(s)
INDEPENDENT ACCOUNTANT’S REPORT .............................................................. 1
INDEPENDENT AUDITOR’S REPORT ON SUPPLEMENTARY
INFORMATION .......................................................................................................... 2
SUPPLEMENTARY INFORMATION
Balance Sheet ............................................................................................................... 3
Statement of Revenues, Expenditures, and
Changes in Fund Balance ........................................................................................... 4
- 1 -
INDEPENDENT ACCOUNTANT’S REPORT
The Honorable Mayor
Members of the City Council
City of Naperville
400 South Eagle Street
Naperville, Illinois 60540
We have examined management’s assertion, included in its representation letter dated October 4,
2017 that the City of Naperville (the City) complied with the provisions of subsection (q) of
Section 11-74.4-3 of the Illinois Tax Increment Redevelopment Allocation Act (Illinois Public
Act 85-1142) during the year ended December 31, 2016. Management is responsible for the
City’s assertion and for compliance with those requirements. Our responsibility is to express an
opinion on management’s assertion about the City compliance based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether management’s assertion
about compliance with the specified requirements is fairly stated, in all material respects. An
examination involves performing procedures to obtain evidence about whether management’s
assertion is fairly stated, in all material respects. The nature, timing, and extent of the procedures
selected depend on our judgment, including an assessment of the risks of material misstatement
of management’s assertion, whether due to fraud or error. We believe that the evidence we
obtained is sufficient and appropriate to provide a reasonable basis for our opinion.
Our examination does not provide a legal determination on the City of Naperville's compliance
with the specified requirements.
In our opinion, management’s assertion that the City of Naperville complied with the
aforementioned requirements for the year ended December 31, 2016 is fairly stated, in all
material respects.
This report is intended solely for the information and use of the Mayor, the City Council,
management of the City, Illinois State Comptroller’s Office and the joint review boards and is
not intended to be and should not be used by anyone other than these specified parties.
Naperville, Illinois
October 4, 2017
- 1 -
- 2 -
INDEPENDENT AUDITOR’S REPORT
ON SUPPLEMENTARY INFORMATION
The Honorable Mayor
Members of the City Council
City of Naperville
400 South Eagle Street
Naperville, Illinois 60540
We have audited the 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 City of Naperville, Illinois (the City) as of and for the year ended
December 31, 2016, which collectively comprise the basic financial statements of the City, and
have issued our report thereon dated, October 4, 2017, which expressed an unmodified opinion
on those statements.
Our audit was conducted for the purpose of forming an opinion on the financial statements as a
whole. The supplementary information (balance sheet, schedule of revenues, expenditures, and
changes in fund balance for the Water Street Tax Increment Financing (TIF) District Fund) is
presented for purposes of additional analysis and is not a required part of the financial
statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the financial
statements.
The information has been subjected to the auditing procedures applied in the audit of the
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our
opinion, the information is fairly stated in all material respects in relation to the financial
statements as a whole.
Naperville, Illinois
October 4, 2017
- 2 -
CITY OF NAPERVILLE, ILLINOIS
BALANCE SHEET
WATER STREET
TAX INCREMENT FINANCING DISTRICT FUND
December 31, 2016
Cash and investments 5,208,587$
Receivables
Accrued interest 10,951
Property taxes 62,927
TOTAL ASSETS 5,282,465$
LIABILITIES
Accounts payable 192$
Deposits payable 57,558
Total liabilities 57,750
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 62,927
Total deferred inflows of resources 62,927
FUND BALANCE
Restricted for
Economic development 5,161,788
Total fund balance 5,161,788
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCE 5,282,465$
ASSETS
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCE
See accompany notes to financial statements.- 3 -
CITY OF NAPERVILLE, ILLINOIS
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE
WATER STREET
TAX INCREMENT FINANCING DISTRICT FUND
For the Year Ended December 31, 2016
REVENUES
Taxes
Property 55,662$
Investment income 70,574
Total revenues 126,236
EXPENDITURES
Current
Economic development
Capital outlay 2,130,026
Professional services 18,202
Interest & fiscal charges 135,910
Total expenditures 2,284,138
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (2,157,902)
OTHER FINANCING SOURCES (USES)
Transfers in -
Bond proceeds 6,870,000
Premium on bonds 473,338
Total other financing sources (uses) 7,343,338
NET CHANGE IN FUND BALANCE 5,185,436
FUND BALANCE, DECEMBER 31, 2015 (23,648)
FUND BALANCE, DECEMBER 31, 2016 5,161,788$
See accompany notes to financial statements.- 4 -
CITY OF NAPERVILLE, ILLINOIS
WATER STREET
TAX INCREMENT FINANCING DISTRICT FUND
FINANCIAL AND COMPLIANCE REPORT
For the Eight Months Ended
December 31, 2015
CITY OF NAPERVILLE, ILLINOIS
WATER STREET
TAX INCREMENT FINANCING DISTRICT FUND
TABLE OF CONTENTS
Page(s)
INDEPENDENT ACCOUNTANT’S REPORT .............................................................. 1
INDEPENDENT AUDITOR’S REPORT ON SUPPLEMENTARY
INFORMATION .......................................................................................................... 2
SUPPLEMENTARY INFORMATION
Balance Sheet ............................................................................................................... 3
Statement of Revenues, Expenditures, and
Changes in Fund Balance ........................................................................................... 4
- 1 -
INDEPENDENT ACCOUNTANT’S REPORT
The Honorable Mayor
Members of the City Council
City of Naperville
400 South Eagle Street
Naperville, Illinois 60540
We have examined management’s assertion, included in its representation letter dated
November 15, 2016 that the City of Naperville (the City) complied with the provisions of
subsection (q) of Section 11-74.4-3 of the Illinois Tax Increment Redevelopment Allocation Act
(Illinois Public Act 85-1142) during the eight months ended December 31, 2015. Management is
responsible for the City’s assertion and for compliance with those requirements. Our
responsibility is to express an opinion on management’s assertion about the City compliance
based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants and, accordingly, included examining, on a
test basis, evidence about the City’s compliance with those requirements and performing such
other procedures as we considered necessary in the circumstances. We believe that our
examination provides a reasonable basis for our opinion. Our examination does not provide a
legal determination on the City’s compliance with statutory requirements.
In our opinion, management’s assertion that the City of Naperville complied with the
aforementioned requirements for the eight months ended December 31, 2015 is fairly stated, in
all material respects.
This report is intended solely for the information and use of the Mayor, the City Council,
management of the City, Illinois State Comptroller’s Office and the joint review boards and is
not intended to be and should not be used by anyone other than these specified parties.
Naperville, Illinois
November 15, 2016
- 1 -
- 2 -
INDEPENDENT AUDITOR’S REPORT
ON SUPPLEMENTARY INFORMATION
The Honorable Mayor
Members of the City Council
City of Naperville
400 South Eagle Street
Naperville, Illinois 60540
We have audited the 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 City of Naperville, Illinois (the City) as of and for the eight months
ended December 31, 2015, which collectively comprise the basic financial statements of the
City, and have issued our report thereon dated, November 15, 2016, which expressed an
unmodified opinion on those statements.
Our audit was conducted for the purpose of forming an opinion on the financial statements as a
whole. The supplementary information (balance sheet, schedule of revenues, expenditures, and
changes in fund balance for the Water Street Tax Increment Financing (TIF) District Fund) is
presented for purposes of additional analysis and is not a required part of the financial
statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the financial
statements.
The information has been subjected to the auditing procedures applied in the audit of the
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the financial
statements or to the financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our
opinion, the information is fairly stated in all material respects in relation to the financial
statements as a whole.
Naperville, Illinois
November 15, 2016
- 2 -
CITY OF NAPERVILLE, ILLINOIS
BALANCE SHEET
WATER STREET
TAX INCREMENT FINANCING DISTRICT FUND
December 31, 2015
Cash and investments 116,778$
Receivables
Property taxes 72,806
TOTAL ASSETS 189,584$
LIABILITIES
Accounts payable 140,426$
Total liabilities 140,426
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 72,806
Total deferred inflows of resources 72,806
FUND BALANCE
Unrestricted
Unassigned (23,648)
Total fund balance (23,648)
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCE 189,584$
ASSETS
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES AND FUND BALANCE
See accompany notes to financial statements.- 3 -
CITY OF NAPERVILLE, ILLINOIS
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE
WATER STREET
TAX INCREMENT FINANCING DISTRICT FUND
For the Eight Months Ended December 31, 2015
REVENUES
Taxes
Property 72,806$
Investment income (25,880)
Total revenues 46,926
EXPENDITURES
Current
Economic development
Capital outlay 7,315,884
Professional services 497,250
Total expenditures 7,813,134
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (7,766,208)
OTHER FINANCING SOURCES (USES)
Transfers in 3,605,653
Total other financing sources (uses) 3,605,653
NET CHANGE IN FUND BALANCE (4,160,555)
FUND BALANCE, MAY 1 4,136,907
FUND BALANCE, DECEMBER 31 (23,648)$
See accompany notes to financial statements.- 4 -