comprehensive annual financial report for the …gfoa.net/cafr/coa2012/aurorail.pdfcity of aurora,...

COMPREHENSIVEANNUAL FINANCIAL REPORTFOR THE YEAR ENDEDDECEMBER 31, 2012

CITY OF AURORA, ILLINOIS

COMPREHENSIVE ANNUAL

FINANCIAL REPORT

For the Year Ended

December 31, 2012

Prepared by Finance Department

Brian W. Caputo

Chief Financial Officer/City Treasurer

Linda B. Read

Assistant Director of Finance

Krista L. Heinke

Acting Accounting Supervisor


TABLE OF CONTENTS

Page(s)

INTRODUCTORY SECTION

Principal Officials ......................................................................................................... i

Organizational Chart ..................................................................................................... ii

Certificate of Achievement for Excellence in Financial Reporting .............................. iii

Letter of Transmittal ..................................................................................................... iv-xiii

FINANCIAL SECTION

INDEPENDENT AUDITOR’S REPORT .................................................................... 1-3

GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS

Management’s Discussion and Analysis .................................................................. MD&A1-17

Basic Financial Statements

Government-Wide Financial Statements

Statement of Net Position ............................................................................... 4-5

Statement of Activities ................................................................................... 6-7

Fund Financial Statements

Governmental Funds

Balance Sheet ................................................................................................ 8-9

Reconciliation of Fund Balances of Governmental Funds to

the Governmental Activities in the Statement of Net Position .................. 10

Statement of Revenues, Expenditures and Changes in Fund Balances ....... 11

Reconciliation of the Governmental Funds Statement of Revenues,

Expenditures and Changes in Fund Balances to the Governmental

Activities in the Statement of Activities ..................................................... 12


TABLE OF CONTENTS (Continued)

Page(s)

FINANCIAL SECTION (Continued)

GENERAL PURPOSE EXTERNAL FINANCIAL STATEMENTS (Continued)

Basic Financial Statements (Continued)

Fund Financial Statements (Continued)

Proprietary Funds

Statement of Net Position .............................................................................. 13-14

Statement of Revenues, Expenses and Changes in

Fund Net Position ........................................................................................ 15

Statement of Cash Flows ............................................................................... 16-17

Fiduciary Funds

Statement of Fiduciary Net Position ............................................................. 18

Statement of Changes in Fiduciary Net Position .......................................... 19

Notes to Financial Statements ............................................................................. 20-68

Required Supplementary Information

Schedule of Revenues, Expenditures and Changes

in Fund Balance - Budget and Actual - General Fund ...................................... 69

Schedule of Funding Progress

Illinois Municipal Retirement Fund ............................................................... 70

Firefighters’ Pension Fund ............................................................................. 71

Police Pension Fund ....................................................................................... 72

Other Postemployment Benefit Plan .............................................................. 73

Schedule of Employer Contributions

Illinois Municipal Retirement Fund ............................................................... 74



Other Postemployment Benefit Plan .............................................................. 77

Notes to Required Supplementary Information ................................................... 78



Page(s)


COMBINING AND INDIVIDUAL FUND

FINANCIAL STATEMENTS AND SCHEDULES

MAJOR GOVERNMENTAL FUNDS

Schedule of Revenues, Expenditures and Changes in

Fund Balance - Budget and Actual - Debt Service Fund .................................. 79

NONMAJOR GOVERNMENTAL FUNDS

Combining Balance Sheet ................................................................................... 80-81

Combining Statement of Revenues, Expenditures and

Changes in Fund Balances................................................................................. 82

Nonmajor Special Revenue Funds

Combining Balance Sheet .............................................................................. 83-86


Changes in Fund Balances ............................................................................ 87-90


in Fund Balance - Budget and Actual

Motor Fuel Tax Fund ................................................................................. 91

SHAPE Fund ............................................................................................. 92

Sanitation Fund .......................................................................................... 93

Wireless 911 Surcharge Fund .................................................................... 94

Block Grant Fund....................................................................................... 95

Section 108 Loan Fund .............................................................................. 96

Foreign Fire Insurance Tax Fund ............................................................... 97

Asset Seizure Fund .................................................................................... 98

Federal Asset Forfeitures Fund .................................................................. 99

State Asset Forfeitures Fund ...................................................................... 100

Tax Increment Financing District #1 (Downtown) Fund .......................... 101

Tax Increment Financing District #2 (Farnsworth) Fund .......................... 102

Tax Increment Financing District #3 (River City) Fund ............................ 103

Tax Increment Financing District #4 (Bell Gale) Fund ............................. 104

Tax Increment Financing District #5 (West River Area) Fund ................. 105

Tax Increment Financing District #6 (East River Area) Fund ................... 106

Tax Increment Financing District #7 (West Farnsworth Area) Fund ........ 107

Tax Increment Financing District #8 (East Farnsworth Area) Fund ......... 108

Special Service Areas Fund ....................................................................... 109

Stormwater Management Fee Fund ........................................................... 110

Long-Term Control Plan Fee Fund ............................................................ 111



Page(s)



FINANCIAL STATEMENTS AND SCHEDULES (Continued)

NONMAJOR GOVERNMENTAL FUNDS (Continued)

Nonmajor Capital Projects Funds



Changes in Fund Balances ............................................................................ 114-115


in Fund Balance - Budget and Actual

Capital Improvements Fund A ................................................................... 116

2008A TIF Bond Project Fund .................................................................. 117

2008B TIF Bond Project Fund ................................................................... 118

Airport Fund .............................................................................................. 119

Gaming Tax Fund ...................................................................................... 120

Fire Impact Fees Fund ............................................................................... 121

Public Works Impact Fees Fund ................................................................ 122

Ward Projects Fund ................................................................................... 123

2006 General Obligation Bond Project Fund ............................................ 124



Ward Projects Fund


Combining Schedule of Revenues, Expenditures

and Changes in Fund Balance....................................................................... 129-130

NONMAJOR ENTERPRISE FUNDS

Combining Statement of Net Position ................................................................. 131

Combining Statement of Revenues, Expenses and Changes in

Net Position ....................................................................................................... 132

Combining Statement of Cash Flows .................................................................. 133-134

Schedule of Revenues and Expenditures - Budget and Actual

Motor Vehicle Parking System Fund ............................................................. 135

Transportation Center Fund ............................................................................ 136

Golf Operations Fund ..................................................................................... 137



Page(s)



FINANCIAL STATEMENTS AND SCHEDULES (Continued)

INTERNAL SERVICE FUNDS

Combining Statement of Net Position ................................................................. 138

Combining Statement of Revenues, Expenses and Changes in

Net Position ....................................................................................................... 139

Combining Statement of Cash Flows .................................................................. 140-141

Schedule of Revenues, Expenses and Changes in

Net Position - Budget and Actual

Property and Casualty Insurance Fund ........................................................... 142

Employee Health Insurance Fund ................................................................... 143

Employee Compensated Benefits Fund .......................................................... 144

FIDUCIARY FUNDS

Combining Statement of Plan Net Position - Pension and Other

Postemployment Benefit Trust Funds ............................................................... 145

Combining Statement of Changes in Plan Net Position -

Pension and Other Postemployment Benefit Trust Funds ................................. 146

Schedule of Changes in Plan Net Position - Budget and Actual



Retiree Health Insurance Trust Fund .............................................................. 149

Combining Statement of Changes in Assets and

Liabilities - Agency Funds ................................................................................ 150

SUPPLEMENTARY FINANCIAL INFORMATION

Schedule of Revenues - Budget and Actual - General Fund ............................... 151-152

Schedule of Detailed Expenditures - Budget and Actual -

General Fund (By Function) .............................................................................. 153-163

Schedule of Detailed Expenditures - Administrative Services -

Budget and Actual - General Fund .................................................................... 164-166

Schedule of Detailed Expenditures - Community Services -


Schedule of Detailed Expenditures - Development Services -

Budget and Actual - General Fund .................................................................... 169

Schedule of Detailed Expenditures - Operations -




Page(s)


COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES (Continued) SUPPLEMENTARY FINANCIAL INFORMATION (Continued) Schedule of Revenues and Expenditures - Budget and Actual - Water and Sewer Fund ...................................................................................... 172-173 Schedule of Insurance Coverage and Other Information .................................... 174 Schedule of Corporate Purpose Bonds - General Long-Term Debt .................... 175-179 Schedule of Installment Contracts and Debt Certificates - General Long-Term Debt .................................................................................. 180 Schedule of TIF Bonds/Notes - General Long-Term Debt ................................. 181-183 Schedule of Revenue Bonds - Proprietary Funds ................................................ 184

STATISTICAL SECTION Financial Trends Net Position by Component ......................................................................................... 185-186 Change in Net Position ................................................................................................. 187-190 Fund Balances of Governmental Funds ....................................................................... 191 Changes in Fund Balances of Governmental Funds .................................................... 192-193 Revenue Capacity Property Tax Assessed Valuations, Rates and Extensions .......................................... 194-195 Assessed Value and Actual Value of Taxable Property .............................................. 196 Property Tax Rates - Direct and Overlapping Governments ....................................... 197-198 Principal Property Taxpayers ....................................................................................... 199 Property Tax Levies and Collections ........................................................................... 200 Taxable Sales by Category ........................................................................................... 201 Direct and Overlapping Sales Tax Rates ..................................................................... 202 Debt Capacity Ratios of Outstanding Debt by Type ............................................................................ 203 Ratios of General Bonded Debt Outstanding .............................................................. 204 Direct and Overlapping Governmental Activities Debt .............................................. 205 Schedule of Legal Debt Margin ................................................................................... 206 Pledged-Revenue Coverage ......................................................................................... 207 Demographic and Economic Information Demographic and Economic Information .................................................................... 208 Principal Employers ..................................................................................................... 209 Operating Information Full-Time Equivalent Employees ................................................................................ 210 Operating Indicators ..................................................................................................... 211 Capital Asset Statistics ................................................................................................. 212 Additional Disclosures Required by SEC Rule 15c2-12 .............................................. 213-251

INTRODUCTORY SECTION

i


PRINCIPAL OFFICIALS

MAYOR

Thomas J. Weisner

CITY COUNCIL

Robert J. O’Connor, Alderman at Large

Richard C. Irvin, Alderman at Large

Abby D. Schuler, First Ward Alderman

Juany Garza, Second Ward Alderman

Stephanie A. Kifowit, Third Ward Alderman

Richard A. Lawrence, Fourth Ward Alderman

John S. “Whitey” Peters, Fifth Ward Alderman

Michael B. Saville, Sixth Ward Alderman

Scheketa Hart-Burns, Seventh Ward Alderman

Richard B. Mervine, Eighth Ward Alderman

Allan Lewandowski, Ninth Ward Alderman

Lynda D. Elmore, Tenth Ward Alderman

PRIMARY ADMINISTRATIVE OFFICIALS

Alex G. Alexandrou, Chief Administrative Services Officer

Daniel Barreiro, Chief Community Services Officer

Brian W. Caputo, Chief Financial Officer/City Treasurer

Hal A. Carlson, Fire Chief

Rosario DeLeon, Chief Operations Officer

Carie Anne Ergo, Chief Management Officer

Eva L. Luckinbill, Director of Libraries

Gregory S. Thomas, Police Chief

Alayne M. Weingartz, Corporation Counsel

William A. Wiet, Chief Development Services Officer

CITY OF AURORAOrganizational ChartOrganizational Chart

Citizens of Aurora

City CouncilMayor and

12 Aldermen

Boards

African AmericanHeritage Advisory

Board

AirportAdvisory

AuroraCivic Center

Aurora HousingAuthority

Mayor'sOffice

LawDepartment

AdministrativeServices

Department

CommunityServices

DevelopmentServices

Commissions

CivilService

EconomicDevelopment

Election ElectricalCivic CenterAuthority

Authority

AuroraNeighborhood

Council

Assault W eaponsAdvisory

Committee

Block GrantW orking

Committee

Building CodeBoard ofAppeals

EnvironmentalAd i

Fire CodeB d

ServicesDepartment

ServicesDepartment

FinanceDepartment

FireDepartment

PoliceDepartment

OperationsDepartment

Lib

Election Electrical

Grand Armyof the Republic

HistoricPreservation

HumanRelations

Planning

PublicRi lkAdvisory

CommitteeBoard

of Appeals

FirePension

Fourthof JulyParade

Foxwalk OverlayDistrict Design

ReviewCommittee

HispanicHeritage Advisory

Board

Permanent Building

LibraryPublic

ArtRiverwalk

Library and Fire CodeCommittee

PolicePension

PropertyMaintenanceCode Boardof Appeals

RetireeHealth

InsuranceTrust

VeteransAdvisoryCouncil

ZoninggBoard

of Appeals

ii

iii

barbs

Rectangle

barbs

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barbs

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barbs

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v

The Reporting Entity and its Services

The City of Aurora was incorporated in 1857. The city is located approximately 36 miles west of Chicago.

Aurora is a home-rule community as defined by the Illinois Constitution and operates under the mayor-

council form of government. The City Council is comprised of 12 aldermen, two elected at large and one

elected from each of the city’s ten wards.

Aurora is a diverse and growing community. The city currently has a land area of approximately 46 square

miles and extends into four Illinois counties: Kane, DuPage, Kendall, and Will. In the 2010 census, Aurora’s

population was found to be 197,899, making it the second most populous municipality in the state. The 1980

and 2000 census figures of 81,293 and 142,990, respectively, provide insight into the pace of Aurora’s

growth. The United States Census Bureau found that Aurora was the 18th fastest growing city in America

during the 1990s among cities with a population of more than 100,000.

The city provides the full range of municipal services contemplated by statute or charter. These services

include public safety, roadway maintenance, refuse disposal, public improvements, planning and zoning,

engineering and inspection, water and sewer utility service, youth and certain other social services, and

general administrative services. Supplementing the recreational services provided by local park districts, the

city operates several municipal parks, one zoo, and two golf courses. The city also owns and operates the

Aurora Municipal Airport. Library services are provided by the Aurora Public Library. The Aurora Public

Library is a component unit of the city whose financial information is “discretely presented” in accordance

with generally accepted accounting principles. Consequently, most of the detailed financial information

pertaining to the library is published in a separate financial report.

The Accounting System and Budgeting

The accounts of the city are organized on the basis of funds, each of which is considered a separate

accounting entity. The operations of each fund are accounted for with a separate set of self-balancing

accounts that comprise its assets, deferred outflows, liabilities, deferred inflows, fund balances, revenues, and

expenditures. Resources are allocated to and accounted for in individual funds based upon the purposes for

which they are to be spent and the means by which spending activities are controlled.

The city’s accounting records are generally maintained on the modified accrual basis of accounting. Under

the modified accrual basis of accounting, revenues are recorded when measurable and available to liquidate

obligations of the current period and expenditures are recorded when a liability is incurred that is expected to

draw upon current financial resources. The modified accrual accounting records are the basis for assessing

budgetary compliance. After the end of the fiscal year, the city’s management makes various adjustments to

the accounting records to permit the preparation of certain financial statements on the accrual basis of

accounting to comply with generally accepted accounting principles. Under the accrual basis of accounting,

revenues are recorded when earned and expenses are recorded when incurred.

The City of Aurora has operated under the budget system as permitted by Chapter 65 of Illinois Compiled

Statutes (as opposed to the appropriation system) since January 1, 2000. State law requires that a

municipality operating under the budget system adopt its annual budget prior to the start of its fiscal year.

Through the budget, spending authority is conveyed by expenditure object. Budgetary control is maintained

by the use of encumbrance accounting under which purchase orders, contracts, and other commitments are

effectively recorded as temporary expenditures in order to reserve the proper portion of the applicable

budgetary account. The legal level of budgetary control is the department level or, where no departmental

segregation of a fund exists, the fund level.

vi

The city’s budget development process starts in March of each year with the issuance of budgeting

instructions by the Finance Department. These instructions provide detailed guidance to the city staff on how

to prepare departmental/divisional budget requests. Applicable forms are also provided. Department heads

must submit their budget requests to the Finance Department in April. During the month of May, the Finance

Department compiles a draft city budget based upon the departmental requests and its projection of revenues

for the budget year. In June and July, the Mayor meets with department heads to review their budget

requests. He makes adjustments as appropriate to achieve budgetary balance and align the spending plan

with his priorities. During August and September, the Finance Department revises the draft budget as

directed by the Mayor. The Mayor submits his proposed city budget to the City Council for consideration in

October.

Upon receiving the Mayor’s proposed budget, the City Council refers the document to its Finance Committee

for review. The Finance Committee meets with selected department heads and other city staff members

during October and November to review the proportions of the proposed budget within their functional

responsibility. The Finance Committee may make changes to the proposed budget in consultation with the

Mayor. Upon completion of its review, the Finance Committee typically recommends approval of the

proposed budget to the City Council in November. The City Council approves the budget in late November

or early December.

The city prepares budgets for its numerous governmental, proprietary, and fiduciary funds. The General

Fund, Debt Service Fund, Gaming Tax Fund, and several other special revenue and capital projects funds

comprise the governmental funds section of the budget. The proprietary funds section includes the Water

and Sewer Fund, Motor Vehicle Parking System Fund, Transportation Center Fund, Golf Operations Fund,

and the three internal service funds. The Aurora Police Pension Fund, Aurora Firefighters’ Pension Fund,

and Retiree Health Insurance Trust Fund are included in the budget as fiduciary funds. The city does not

adopt a budget for its Working Cash Fund (a permanent governmental fund) or agency funds.

Factors Affecting Economic Condition

Local Economy. The City of Aurora was resilient during the recession of 2008 – 2009 and has shown strong

indications of substantial recovery. The city possesses several characteristics that give it the capacity to

endure through economic downturns. The city is a full participant in the metropolitan Chicagoland economy.

As residential and business development has moved west from Chicago, Aurora has been a beneficiary. As

described above, Aurora has experienced rapid population growth for more than 30 years. Geographic

growth has paralleled the population increases. Between 1980 and 2012 the land area of the city increased

from 28 to 46 square miles. The city has managed the growth with a “growth should pay for itself”

philosophy. This philosophy has manifested itself through policies that require new developments to pay for

their own infrastructure.

A major strength of Aurora’s economic base is its diversity. Of the city’s combined total of $3,598,534,505

in equalized assessed value (EAV) for the 2011 property tax levy (applicable to property taxes paid in 2012),

$582,824,054 or 16.2% was classified as commercial and $282,100,080 or 7.8% as industrial. Between 2010

and 2011, the city’s total EAV (excluding incremental/tax increment financing EAV) decreased by $347.0

million or 9.6% due to the reassessment of properties.

The city’s retail anchor continues to be the Westfield Shoppingtown Fox Valley, a 1.5 million square-foot

enclosed shopping mall constructed in the 1970s that contains over 160 stores. While the mall enjoys

vii

regional recognition as a prime shopping location, several smaller retail centers also exist throughout the

community.

Certainly the most significant addition to the city’s retail base in recent years has been Chicago Premium

Outlets. This facility, located just east of Farnsworth Avenue and north of Interstate Route 88, is a 435,000

square-foot upscale, fashion-oriented outlet center with more than 120 stores. The outlet center attracts

shoppers from throughout Illinois, Indiana, and Wisconsin.

Economic development successes during 2012 included:

Temple-Inland, Inc. The Austin, Texas-based manufacturer of corrugated packaging and

building products opened its 350,000 square-foot manufacturing and distribution plant at

2540 Prospect Court in Aurora’s Butterfield Business Park. The $20 million project created

about 125 jobs.

The Jel Sert Company. The producer of freezer bars, diet drinks, gelatins, puddings, and

frozen desserts, opened its main distribution center spanning 300,000 square feet at 2380

Diehl Road in the White Oak Business Park. The facility supplements the company’s

distribution center network in the area and brought about 50 jobs to the community.

Mazada North America. The automobile manufacturer opened its new 250,000 square-foot

parts distribution center in the Liberty Business Center. The center created 65 full-time jobs

as well as seasonal and part-time employment opportunities.

Chick-Fil-A. The fast-food chicken chain opened its first restaurant in the Chicago area in

Aurora. The restaurant is on Route 59 east of the Westfield Fox Valley Mall.

Central DuPage Hospital. The Winfield, Illinois-based provider of medical care broke

ground for its 27,000 square-foot urgent care facility on 15 acres on Bilter Road between

Farnsworth Avenue and Church Road. The $17 million facility will create about 300 jobs.

CQG, Inc. The industry-leading order execution, charting, and analytics provider for global,

electronically-traded securities located its exchange gateway servers at CME Group’s new,

state-of-the-art data center in Aurora. The center will provide low-latency order routing and

market data connectivity to the CME Globex platform.

Xpedx. This unit of International Paper that distributes packaging and printing supplies

opened a 316,000 square-foot facility in the Liberty Business Park.

V.ar.vit S.p.a. This branch of the Italian-based manufacturing company, the Vescovini

Group, opened a 55,161 square-foot distribution center at 1455 Sequoia Drive on Aurora’s

far west side. The facility is the company’s first distribution center in the United States.

Konen Insurance. This locally-based insurance agency opened its new corporate

headquarters at 2570 Beverly Drive in the Aurora Corporate Center.

Grundfos Pumps Corporation. Grundfos is a manufacturer of pumps, pumping systems, and

related technologies. During 2012, the company opened a new business development center

at 3905 Enterprise Court on the city’s far east side.

viii

As these business moves suggest, the vibrant economic climate in Aurora just keeps getting better.

Long-Term Financial Planning. The city uses a number of processes and resultant planning documents to

accomplish its financial planning. As discussed above, the city adopts an annual budget. There are two

major planning documents that are inputs to the annual budgeting process. The first is the city’s strategic

plan. The strategic plan establishes a comprehensive program of major goals for the city. The overall

organizational goals included in the current plan are to:

Attract and retain businesses and jobs.

Preserve high levels of public safety and quality of life.

Provide efficient, innovative, transparent, and accountable city government.

The city’s departments and divisions have established goals and programs of work to support the

accomplishment of the citywide goals listed above.

Tasks included in the strategic plan that require capital expenditures are inputs to the city’s capital planning

process. Those that do not require capital expenditures are direct inputs to the annual budget process.

The second major input to the annual budget process is the capital planning process. The Capital

Improvements Plan (CIP) is the product of the capital planning process. The CIP reflects a ten-year

projection for a variety of capital projects, to include infrastructure. For a project to be included in the CIP,

it must involve the creation or purchase of a tangible asset with an original cost of at least $100,000 and a

useful life of more than one year. (Motor vehicles and equipment are excluded from the CIP.) The major

categories of projects in the CIP are:

Downtown.

Economic Development.

Facilities.

Municipal Airport.

Neighborhood Redevelopment.

Recreation.

Stormwater.

Transportation.

Water and Sewer.

Those projects that are programmed for the first year of the CIP (i.e., the upcoming budget year) are most

closely scrutinized in the capital planning process because their funding must be addressed in the annual

budget.

ix

Financial Policies. The city has established several specific policies to guide its financial operations. Those

policies relate to accounting and financial reporting, budgeting and revenue management, debt management,

cash management and investments, and purchasing. Some of the most significant policies include:

Issue a comprehensive annual financial report within 180 days of the end of each fiscal year

that complies with generally accepted accounting principles. (Accounting and Financial

Reporting)

Capitalize building improvements, land improvements, and infrastructure with an acquisition

cost of $100,000 or more. Capitalize vehicles, machinery, furniture, and equipment with an

acquisition cost of $50,000 or more. (Accounting and Financial Reporting)

Maintain a diversified revenue structure. (Budgeting and Revenue Management)

Maintain a General Fund balance of the greater of a) $1 million plus 25% of the prior year’s

corporate property tax levy or b) 10% of expenditures as originally budgeted for the year.

(Budgeting and Revenue Management)

Maintain a balanced General Fund budget except for planned drawdowns of the fund balance

when the fund balance exceeds its target. (Budgeting and Revenue Management)

Restrict the use of gaming tax revenues to capital projects, general obligation debt service,

and non-essential services. Maximize the use of gaming tax revenues for downtown

redevelopment purposes. (Budgeting and Revenue Management)

Make annual employer contributions to the Retiree Health Insurance Trust Fund so as to

achieve an 80% funded ratio for the retiree healthcare plan after several years. (Budgeting

and Revenue Management)

Limit the period during which debt is outstanding to a time period not greater than the useful

life of the asset financed by the debt. (Debt Management)

Sell bonds through competitive, rather than negotiated, sales whenever possible. (Debt

Management)

Require that all bank deposits be collateralized with high-quality securities having a market

value of at least 110% of the underlying securities. (Cash Management and Investments)

Purchase investments on a delivery-versus-payment basis pursuant to competitive bidding.

(Cash Management and Investments)

Place all investment securities with a third-party custodian for safekeeping. (Cash

Management and Investments)

Conduct a formal competitive bidding process (newspaper publication) for purchases in

excess of $25,000. (Purchasing)

Obtain City Council approval of all purchases in excess of $10,000. (Purchasing)

x

2012 Accomplishments

Aurora is a great place to work, live, and raise a family. The City of Aurora is dedicated to constantly

improving the delivery of its services thereby enhancing the quality of life for its residents and the operating

environment for its businesses. Among the city’s more notable accomplishments in 2012 were:

175th Anniversary Celebration. In recognition of our founding in 1837, we celebrated 175

years of community. Our birthday was recognized in numerous community events and city

communications. We also produced a distinctive city logo to commemorate the occasion.

Clearly, pride runs deep in Aurora.

Crime declined again. Aurora completed 2012 without the occurrence of a single murder.

While crime has been declining in the city for several years, 2012 was first year since 1946

during which we achieved a zero murder rate. More generally, the rate of major crimes

declined by 6.8% from 2011. Violent crimes fell by 9.3% and property crimes tapered off by

6.4%. Intensified law enforcement efforts can be credited, in large part, for these reductions

in crime. With respect to property crimes, a Police Department task force specifically

focused on reducing burglaries.

Fire Prevention Education. In an effort to enhance public safety, the Aurora Fire

Department conducted a bilingual campaign to educate the public on the most significant

causes of home fires and the steps that can be taken to prevent those fires. During the course

of the campaign, approximately 12,000 residents received fire prevention information during

community meetings and other face-to-face contacts with firefighting personnel.

Public Safety Collaboration with Naperville. Supported by a $900,000 grant from the

federal government, the city installed a video conferencing system connecting the Aurora

Fire Department with the Naperville Fire Department. The system will permit joint and

expanded training opportunities. In addition, because the system will enable us to conduct

more training in-house, response times for fire and paramedic calls will be improved.

Electricity Aggregation. In May, the city awarded a contract to First Energy Solutions

to supply electricity to the city’s residents and small businesses at a rate of 4.71¢ per

kilowatt-hour for 24 months. This represents a savings of about 25% on the supply

portion of an electric bill. The total savings to the community will be approximately

$20 million over the two-year term of the contract.

Street Resurfacing Program. The city resurfaced 36.8 lane-miles of residential streets.

This annual program has had a direct, positive impact upon Aurora’s neighborhoods. Also,

with motor fuel tax revenues, 17.9 miles of arterial streets in the city were resurfaced.

Downer Place Bridges. Originally constructed in 1906, the two bridges over the Fox River

at Downer Place in the city’s downtown had badly deteriorated. We replaced both of these

bridges during the single construction season of 2012 so as to minimize the disruption to

downtown businesses. The total cost of the project was approximately $8.4 million with

$6.7 million contributed by the Illinois Department of Transportation and $1.7 million

coming from the city’s Motor Fuel Tax Fund.

xi

RiverEdge Park. In June 2011, the city contracted for the construction of the RiverEdge

Park Music Garden along the east bank of the Fox River just north of our downtown. The

park is nearing completion and the first public event is scheduled to be Blues on the Fox in

June of 2013. The construction of this central recreational and entertainment venue created

250 construction jobs. The park will also serve as a general economic development catalyst

for the city’s downtown core and is expected to bring 450 to 600 private-sector jobs to

Aurora over the next decade.

Farmers Market Commemorates 100 Years. For every year since 1912, the City of Aurora

has staged its Farmers Market. In 2012, the Aurora Farmers Market celebrated its 100th

anniversary. The market offers locally-grown fresh produce, artisan food, unique

handcrafted items, and other specialties. Aurora’s market, which runs on Saturdays from

June to mid-October each year, is Illinois’ longest running farmers market.

Replacing Damaged Trees. Over the past few years, the emerald ash borer has damaged

thousands of trees in Aurora. During 2012, the city removed approximately 2,500 dead or

dying trees from parkways. After planting 1,150 trees in 2011, 1,250 trees were planted in

2012 in areas affected by the emerald ash borer. The city is determined to counter the

damage inflicted by the menacing insect. Also, in the new plantings, the city has used a

variety of tree species so as to reduce the possibility of any single malady afflicting a large

portion of the tree population again.

New Lease Agreement for the Route 25 Mine. The city owns a mine at Route 25 and

Mettel Road. Under a lease executed in 2012, the city, with the assistance of LaFarge

Aggregates Illinois, will construct an innovative system to dispose of lime sludge generated

by the city’s water treatment plant in inactive portions of the mine with the approval of the

Illinois Environmental Protection Agency. The system will save an estimated $45 million on

the cost of lime sludge disposal during the 30 years following construction of the system in

2015. Additionally, under the lease, LaFarge will pay at least $3.5 million in royalties over

the next 20 years.

Energy Conservation. With a $1.6 million grant from the federal government, the city

completed a wide array of projects designed to conserve energy throughout all sectors of our

community between 2010 and 2012. For the city government, the projects included

retrofitting light fixtures and heating/cooling units with energy efficient mechanisms. Also,

traffic signals on a segment of New York Street were interconnected and fitted with light-

emitting diodes. With respect to residential and business structures, energy audits were

conducted, older toilets were replaced with high-efficiency toilets, wall and attic insulation

was replaced, and education on energy efficiency and conservation opportunities was

provided. Furthermore, the city installed traffic signal wind turbines at two locations.

New Collective Bargaining Agreement. The city came to terms on new collective

bargaining agreements with Firefighters Local 99 representing the city’s firefighters and fire

lieutenants and the Aurora Fire Officers Association representing fire captains, battalion

chiefs, and assistant chiefs. The agreements will be in force through December 31, 2013.

Funding for Construction of Library Improvements. In September of 2012, the City

Council approved the issuance of $19.2 million of general obligation bonds for the

xii

construction of a new main library facility and other library improvements. The city was

also awarded a library construction grant of $10.8 million from the State of Illinois.

Together, these funds will permit us to construct a state-of-the-art educational and cultural

center with greatly expanded service capacity in the city’s downtown to replace the currently

antiquated main library building. The city’s existing library branches will also be

modernized. Every corner of the city will benefit from the project.

Bond Refundings. In conjunction with the library bond issue, the city refunded two series of

general obligation bonds issued in 2004 and one series of debt certificates issued in 2002. In

total, the refundings will save taxpayers approximately $1.5 million over the next several

years.

The city’s record of achievement for 2012 was substantial. Given the professionalism and dedication of the

Mayor, City Council, and city staff, I believe that the accomplishments of the future will be no less weighty.

All are committed to seeing that Aurora residents and businesses receive first-rate municipal services.

Awards and Acknowledgements

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a

Certificate of Achievement for Excellence in Financial Reporting to the City of Aurora for its CAFR for the

fiscal year ended December 31, 2011. This was the 14th consecutive year that the government achieved this

prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily

readable and efficiently organized CAFR. The report must satisfy both generally accepted accounting

principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that this CAFR continues to

meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to

determine its eligibility for another certificate.

In addition, the City of Aurora received the GFOA’s Distinguished Budget Presentation Award for its annual

budget for the 2012 fiscal year. This was the 13th consecutive year that the government achieved this award.

In order to qualify for the Distinguished Budget Presentation Award, a governmental unit must publish a

budget document that meets program criteria as a policy document, as an operations guide, as a financial

plan, and as a communications device.

FINANCIAL SECTION

INDEPENDENT AUDITOR’S REPORT

- 2 -

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects,

the respective financial position of the governmental activities, the business-type activities, the

discretely presented component unit, each major fund and the aggregate remaining fund

information of the City, as of December 31, 2012, and the respective changes in financial

position and, where applicable, cash flows thereof for the year then ended in accordance with

accounting principles generally accepted in the United States of America.

Emphasis of Matter

The City adopted Governmental Accounting Standards Board (GASB) Statement No. 63,

Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net

Position and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities,

during the year ended December 31, 2012. Statement No. 63 added new classifications on the

statements of net position and changed net assets to net position. Statement No. 65 changed the

classifications of certain items on the statement of position to the new classifications contained in

GASB Statement No. 63.

Other Matters

Accounting principles generally accepted in the United States of America require that the

management’s discussion and analysis and the required supplementary information listed in the

table of contents be presented to supplement the basic financial statements. Such information,

although not a part of the basic financial statements, is required by the Governmental Accounting

Standards Board, who considers it to be an essential part of financial reporting for placing the

basic financial statements in an appropriate operational, economic or historical context. We have

applied certain limited procedures to the required supplementary information in accordance with

auditing standards generally accepted in the United States of America, which consisted of

inquiries of management about the methods of preparing the information and comparing the

information for consistency with management’s responses to our inquiries, the basic financial

statements and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited

procedures do not provide us with sufficient evidence to express an opinion or provide any

assurance.

Our audit was conducted for the purpose of forming opinions on the basic financial statements

that collectively comprise the City’s basic financial statements as a whole. The introductory

section, combining and individual fund financial statements and schedules and statistical section

are presented for purposes of additional analysis and are not a required part of the basic financial

statements. The combining and individual fund financial statements and schedules are the

responsibility of management and were derived from and relate directly to the underlying

accounting and other records used to prepare the basic financial statements. The information has

been subjected to the auditing procedures applied in the audit of the basic financial statements

and certain additional procedures, including comparing and reconciling such information directly

- 2 -

(See independent auditor’s report)

MD&A 1


MANAGEMENT’S DISCUSSION AND ANALYSIS

December 31, 2012

As the management of the City of Aurora (the “City”), we offer readers of the City’s financial

statements this narrative overview and analysis of the financial activities of the City for the fiscal

year ended December 31, 2012. We encourage readers to consider the information presented

here in conjunction with additional information that we have furnished in our letter of

transmittal, which may be found on pages iv through xiii of this report.

USING THE FINANCIAL SECTION OF THIS COMPREHENSIVE ANNUAL REPORT

In accordance with generally accepted accounting principles, the City presents its financial

statements so as to offer two perspectives of its financial position and results of operations. The

government-wide perspective presents financial information for the government as a whole. The

fund perspective involves the presentation of financial information for individual accounting

entities established by the City for specific purposes. The focus of the fund statements is on

major funds. Both perspectives (government-wide and major fund) address likely user questions,

provide a broad basis for comparison (year to year or government to government), and enhance

the City’s accountability.

Government-Wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad

overview of the City’s finances, in a manner similar to a private-sector business.

The Statement of Net Position presents information on all of the City’s assets, deferred outflows

of resources, liabilities, and deferred inflows of resources with the difference between the two

reported as net position. Over time, increases or decreases in net position may serve as a useful

indicator of whether the financial position of the City is improving or deteriorating.

The Statement of Activities presents information showing how the government’s net position

changed during the most recent fiscal year. All changes in net position are reported as soon as an

event giving rise to the change occurs, regardless of the timing of the cash flows. Thus, revenues

and expenses are reported in this statement for some items that will only result in cash flows in

future fiscal periods (e.g., earned but unused sick leave).

Both of the government-wide financial statements distinguish functions of the City that are

principally supported by taxes and intergovernmental revenues (governmental activities) from

other functions that are intended to recover all or a significant portion of their costs through user

fees and charges (business-type activities). The governmental activities of the City include


MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)


MD&A 2

general government, public safety, streets and transportation, health and welfare, culture and

recreation, and economic development. The business-type activities of the City include a water

and sewer system, downtown and commuter parking operations, and two golf courses.

The government-wide financial statements include not only the City itself (known as the primary

government), but also the Aurora Public Library (the “Library”). The City is financially

accountable for the Library, but the Library has a separate governing board. Because the Library

is a component unit, its financial information is reported separately from the financial

information of the City.

The government-wide financial statements can be found on pages 4 through 7 of this report.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have

been segregated for specific activities or objectives. The City, like other state and local

governments, uses fund accounting to ensure and demonstrate compliance with finance-related

legal requirements. All of the funds of the City can be divided into three categories:

governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds. Governmental funds are used to account for essentially the same

functions reported as governmental activities in the government-wide financial statements.

However, unlike the government-wide financial statements, governmental fund financial

statements focus on near-term inflows and outflows of spendable resources, as well as balances

of spendable resources available at the end of the fiscal year. Such information is useful in

evaluating a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial

statements, it is useful to compare the information presented for governmental funds with similar

information presented for governmental activities in the government-wide financial statements.

By doing so, readers may better understand the long-term impact of the government’s near-term

financing decisions. Both the governmental fund balance sheet and the governmental fund

statement of revenues, expenditures, and changes in fund balances provide a reconciliation to

facilitate this comparison between governmental funds and governmental activities.

The City maintains 35 individual governmental funds. Information is presented separately in the

governmental fund balance sheet and in the governmental fund statement of revenues,

expenditures, and changes in fund balances for the General Fund and Debt Services Fund, which

are considered to be “major” funds. Data from the other 33 governmental funds are combined

into a single, aggregate presentation. Individual fund data for each of these nonmajor

governmental funds is provided in the form of combining statements elsewhere in this report.

The City adopts an annual budget for its General Fund. A budgetary comparison statement has

been provided for the General Fund to demonstrate compliance with the budget.




MD&A 3

The basic governmental fund financial statements can be found on pages 8 through 12 of this

report.

Proprietary Funds. The City maintains two different types of proprietary funds: enterprise

funds and internal service funds. Enterprise funds are used to report the same functions

presented as business-type activities in the government-wide financial statements. The City uses

enterprise funds to account for its water and sewer system, downtown and commuter parking

operations, and two golf courses. Internal service funds are an accounting device used to

accumulate and allocate costs internally among the City’s various functions. The City uses

internal service funds to account for the costs of property and casualty insurance, employee

health insurance, and employee severance and sick leave. Because the City’s costs for these

items relate primarily to governmental rather than business-type functions, they have been

included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial

statements, only in more detail. The proprietary fund financial statements provide separate

information for the Water and Sewer Fund, which is considered to be a major fund of the City.

Conversely, the internal service funds are combined into a single, aggregated presentation in the

proprietary fund financial statements. Individual fund data for the internal service funds are

provided in the form of combining statements elsewhere in this report.

The basic proprietary fund financial statements can be found on pages 13 through 17 of this

report.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of

parties outside of the government. Fiduciary funds are not reflected in the government-wide

financial statements because the resources of those funds are not available to support the City’s

own programs. The accounting used for fiduciary funds is much like that used for proprietary

funds. The City maintains five fiduciary funds: the Police Pension Fund, Firefighters’ Pension

Fund, Retiree Health Insurance Trust Fund, Section 125 Medical Fund, and Section 125

Dependent Care Fund.

The basic fiduciary fund financial statements can be found on pages 18 and 19 of this report.

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data

provided in the government-wide and fund financial statements. The notes to the financial

statements can be found on pages 20 through 68 of this report.

Other Information

In addition to the basic financial statements and accompanying notes, this report also presents

certain required supplementary information concerning the City’s progress in funding its

obligation to provide benefits to its employees. Required supplementary information can be

found on pages 69 through 78 of this report.




MD&A 4

The combining statements referred to earlier in connection with nonmajor governmental funds,

nonmajor enterprise funds, and internal service funds are presented immediately following the

required supplementary information on pensions. Combining and individual fund statements and

schedules can be found on pages 79 through 184 of this report.

Financial Analysis of the City as a Whole

Beyond presenting current-year financial information in the government-wide and major

individual fund formats, the City also presents comparative information from the prior year in

this Management’s Discussion and Analysis. By doing so, the City believes that it is providing

the best means of analyzing its financial condition and position as of December 31, 2012.

GOVERNMENT-WIDE STATEMENTS

Net Assets

The following table reflects the condensed Statement of Net Position.




MD&A 5

Table 1

Statement of Net Position

As of December 31, 2012 and 2011

(in millions)

Total

Governmental Business-Type Primary

Activities Activities Government

2012 2011 2012 2011 2012 2011

Current and Other Assets 245.8$ 256.0$ 39.7$ 37.2$ 285.5$ 293.2$

Capital Assets 570.8 563.5 197.3 196.3 768.1 759.8

Deferred Outlflows of Resources 0.4 0.3 - - 0.4 0.3

Total Assets and Deferred Outflows 817.0 819.8 237.0 233.5 1,054.0 1,053.3

Long-Term Liabilities 278.0 284.8 44.5 46.3 322.5 331.1

Other Liabilities 37.2 43.6 3.6 3.5 40.8 47.1

Deferred Inflows of Resources 66.1 65.0 - - 66.1 65.0

Total Liabilities and Deferred Inflows 381.3 393.4 48.1 49.8 429.4 443.2

Net Position:

Invested in Capital Assets 418.9 400.8 160.9 159.2 579.8 560.0

Restricted 60.4 57.5 3.2 3.2 63.6 60.7

Unrestricted (43.6) (31.9) 24.8 21.3 (18.8) (10.6)

Total Net Position 435.7$ 426.4$ 188.9$ 183.7$ 624.6$ 610.1$

The City’s combined net position increased by $14.5 million – from $610.1 to $624.6 million --

during 2012. This change is the result of $9.3 million and $5.2 million increases in the net

position of governmental activities and business-type activities, respectively. Unrestricted net

position declined due to the City not funding the entire required contributions to the Police and

Firefighters’ Pension Funds and the Retiree Health Insurance Trust Fund. The rise in net

position of governmental activities was due primarily to a decline in unearned revenue in 2012 in

funds associated with governmental activities. The increase in the net position of business-type

activities was due mainly to favorable operating results and a decline in long-term liabilities in

the City’s Water and Sewer Fund.

For more detailed information, see the Statement of Net Position on pages 4 and 5.

Activities

The following table summarizes the revenue and expenses of the City’s activities.




MD&A 6

Table 2

Changes in Net Assets

For the Fiscal Year Ended December 31, 2012 and 2011

(in millions)

Total

Governmental Business-Type Primary

Activities Activities Government

2012 2011 2012 2011 2012 2011

REVENUES

Program Revenues:

Charges for Services 20.7$ 19.3$ 34.8$ 31.8$ 55.5$ 51.1$

Operating Grants and Contributions 11.4 11.4 - - 11.4 11.4

Capital Grants and Contributions 20.3 9.5 4.2 4.4 24.5 13.9

General Revenues:

Property Taxes 79.2 82.4 - - 79.2 82.4

Other Taxes 86.0 82.3 0.4 0.4 86.4 82.7

Other 1.5 1.4 0.3 0.4 1.8 1.8

Total Revenues 219.1 206.3 39.7 37.0 258.8 243.3

EXPENSES

General Government 20.6 20.5 - - 20.6 20.5

Public Safety 112.9 108.5 - - 112.9 108.5

Streets and Transportation 29.7 28.2 - - 29.7 28.2

Health and Welfare 12.8 12.7 - - 12.8 12.7

Culture and Recreation 5.6 5.8 - - 5.6 5.8

Economic Development 14.6 12.9 - - 14.6 12.9

Water and Sewer - - 27.9 25.7 27.9 25.7

Downtown Parking - - 1.4 1.4 1.4 1.4

Commuter Parking - - 1.9 2.2 1.9 2.2

Golf Operations - - 2.2 2.0 2.2 2.0

Interest on Long-Term Debt 8.2 8.9 - - 8.2 8.9

Total Expenses 204.4 197.5 33.4 31.3 237.8 228.8

Excess Before Transfers 14.7 8.8 6.3 5.7 21.0 14.5

Transfers 0.7 0.8 (0.7) (0.8) - -

Special Item (4.9) (7.0) - - (4.9) (7.0)

Change in Net Position 10.5$ 2.6$ 5.6$ 4.9$ 16.1$ 7.5$




MD&A 7

For the fiscal year ended December 31, 2012, revenues totaled $258.8 million. The City benefits

from a highly diversified revenue base. Revenues from the City’s largest single source, property

taxes, amounted to about $79 million. Property taxes support governmental activities, which

includes the City’s contribution to the Aurora Police Pension Fund and the Aurora Firefighters’

Pension Fund. Between 2011 and 2012, total property tax revenues declined by 3.9%. This

reflects a decision by the City’s mayor and the Aurora City Council to provide tax relief while

the national and regional economies continue to recover from the recession of 2008 - 2009.

The “other taxes” classification includes a number of different revenue sources. Among those

are sales taxes, income taxes, and gaming taxes. The two major types of sales taxes are the

retailer’s occupation tax (ROT) and the home-rule sales tax. Both of these sales taxes are

collected by the State of Illinois. A portion of the ROT is shared by the state with its

municipalities based upon the point of sale. While the ROT is a 7.0% tax, the equivalent of a 1%

tax is remitted to Aurora. The City’s home-rule sales tax rate is 1.25%. All of the proceeds from

the home-rule sales tax are remitted to Aurora.

The ROT is recorded only in the General Fund. During 2012, the City recorded home-rule sales

tax revenues in the General Fund; Sanitation Fund; SHAPE Fund; Capital Improvements Fund

A; Airport Fund; and the Motor Vehicle Parking Systems Fund.

In 2012, ROT revenues were $20.4 million compared to $19.8 million in 2011. Home-rule sales

tax revenues increased from $18.6 to $18.8 million between the two years. The improvement

indicates that consumers are beginning to spend again after the economic downturn of the past

few years.

21%

4%

10%

31%

33% 1%

2012 Revenues

Charges for Services Operating Grants Capital Grants Property Taxes Other Taxes Other




MD&A 8

Income taxes are also shared by the state, but on a per-capita basis. Between 2011 and 2012, the

City’s income tax revenues increased from $14.3 to $17.4 million or by 21.7%. Two factors

contributed to the rise in income tax revenues. First, an improving economy has led to a rise in

employment and incomes. Second, the City benefited from the impact of the 2010 census that

saw the community’s population rise from 164,681 to 197,899. A full year’s impact of the

higher population count was seen in the 2012 income tax results.

The City collects a $1 per person tax on admissions to Aurora’s riverboat casino, the Hollywood

Casino. Aurora also benefits from a 5% wagering tax on the casino’s revenues. Together, these

taxes amounted to $9.0 million in 2012, down from $10.2 million in 2011. This decline reflects

the effect of the opening of a competing casino in Des Plaines, Illinois, in mid-2011. In 1994,

the first full year when the Aurora casino was in operation, the City received $9.3 million in

gaming taxes. The revenue high point came in 2002 when $16.3 million was generated for the

City.

The major revenue component of the “charges for services” classification is fees from the City’s

water and sewer utility. Water and sewer fee revenue was approximately $30.1 million in 2012,

up from $27.1 million 2011. The higher revenue is attributable to greater water consumption in

response to a drought and a 4.8% rate increase applicable to residential accounts on July 1, 2012.

Particularly notable in Table 2 above is the change in capital grants and contributions. This

classification of revenues increased from $13.9 million in 2011 to $24.5 million in 2012 or

76.3%. The increase can be attributed to the receipt of grants totaling $10.2 million the City

received from the State of Illinois, the Fox Valley Park District, and the Dunham Fund (a private

foundation) for the construction of RiverEdge Park. RiverEdge Park will be a 30-acre

recreational and entertainment venue on the east bank of the Fox River just north of the City’s

downtown.

Table 2 includes special items in the governmental funds for the fiscal years ended on both

December 31, 2011 and 2012. The $7.0 special item recorded in 2011 related to the transfer of

land to the Illinois State Toll Highway Authority. The 2012 special item in the amount of $4.9

million was a loss on the disposal of property owned by the City.




MD&A 9

Aurora’s expenses amounted to a total of $237.8 million in 2012. This reflects an increase of

9.0% from the prior year.

Public safety costs comprise the greatest proportion of the City’s total expenses. Between 2011

and 2012, public safety costs rose by 5.1%, from $108.5 to $112.9 million. The increase is

attributable to higher personnel-related and other operating costs associated with the City’s fire

department and police department.

Higher costs were also incurred in the functions of streets and transportation, other governmental

activities, and water and sewer. Expenses related to streets and transportation rose from $28.2 in

2011 to $29.7 million in 2012 (5.3%). The change came from increased depreciation expense on

roadways and bridges. A 5.1% rise in expenses associated with other governmental activities –

from $31.4 to $33.0 million – was due to higher costs for economic development initiatives.

Specifically, the City undertook several projects to spur redevelopment in Aurora Tax Increment

Financing District #2 in the vicinity of Farnsworth Avenue and Interstate Route 88.

Additionally, costs associated with the water and sewer function increased from $25.7 to $27.9

million (8.6%). These higher costs were associated with operating and maintaining the City’s

water and sewer system.

Interest on long-term debt declined by 7.9% -- from $8.9 million in 2011 to $8.2 million in 2012.

The lower interest costs are attributed to the refunding of several series of general obligation

bonds and special service area debt certificates over the past few years.

9%

47%

13%

14%

3% 12%

2%

2012 Expenses

General Government Public Safety

Streets and Transportation Other Governmental Activities

Interest Water and Sewer

Other Business-Type Activities




MD&A 10

FINANCIAL ANALYSIS OF THE CITY’S FUNDS

At December 31, 2012, the governmental funds had combined fund balances of $116.5 million.

This reflects a $5.0 million decrease from the prior year. Summarized results for the General

Fund are provided below.

Table 3

General Fund Budgetary Highlights

For the Fiscal Year Ended December 31, 2012

(in millions)

Original Amended

Budget Budget Actual

REVENUES

Taxes 127.406$ 127.406$ 125.083$

Licenses, Fees, and Permits 5.874 5.874 6.975

Other 7.273 7.383 8.437

Total Revenues 140.553 140.663 140.495

EXPENDITURES 141.629 142.987 139.967

Change in Fund Balance (1.076)$ (2.324)$ 0.528$

In 2012, the General Fund saw modestly positive results. Tax revenues were $2.3 million or

1.8% under the budgeted amount. This was mainly due to the reallocation of home-rule sales

taxes from the General Fund to Capital Improvements Fund A. The City allocates home-rule

sales tax revenue to the General Fund only as necessary to balance the annual budget. It is

preferred to allocate home-rule sales tax revenue to Capital Improvement Fund A (to support

capital projects) and other special purpose funds. When it became apparent that actual

expenditures in the General Fund would be lower than the budgeted amount for 2012, the City

reallocated home-rule sales taxes not required in the General Fund back to Capital Improvements

Fund A.

State-shared sales tax revenues are a major component of the revenue structure of the General

Fund. Those revenues were $20.4 million or about $400,000 more than the budgeted amount.

Also, as discussed above, income tax revenues were $17.4 million in 2012. This was 20.4%

more than the projected amount for the year.




MD&A 11

Expenditures were $1.7 million less than the originally budgeted amount. The favorable

variance arose from several work units, especially those in the general government function,

spending less than expected. Also notable was that the Street Maintenance Division was more

than $500,000 under budget. This was because of a mild winter and the consequent reduced

snow removal costs.

In addition to the General Fund, the Debt Service Fund is a major governmental fund of the City.

Between December 31, 2011 and 2012, the fund balance of the Debt Service Fund rose modestly

– by about $300,000. The increase was due to real estate transfer tax revenues performing better

than expected during 2012.

There were some notable changes in the fund balances of special revenue funds (other

governmental funds). The fund balance of the SHAPE Fund was drawn down by $1.5 million

for transfers to the Debt Service Fund to cover the debt service on general obligation bonds that

were issued to finance the construction of a new police headquarters building for the City. The

fund balances of the Motor Fuel Tax Fund and the Wireless 911 Surcharge Fund rose by $1.7

million and $1.1 million, respectively. In both cases, resources were set aside for future capital

projects. Additionally, the fund balance of the TIF District #2 Fund declined by $17.3 million.

This was primarily attributable to transfers of $11.6 million to the TIF District #7 Fund and $4.0

million to the TIF District #8 Fund for future redevelopment projects. Thus, the fund balances of

the TIF District #7 Fund and the TIF District #8 Fund increased by the aforementioned amounts.

The fund balances of three capital projects funds changed significantly during 2012. The fund

balance of Capital Improvements Fund A rose by $1.8 million as a result of the reallocation of

home-rule sales tax revenue as discussed above. Also, mainly because of the sale of City

property, the fund balance of the Gaming Tax Fund rose by $2.3 million. Finally, the fund

balance of the 2008 General Obligation Bond Project Fund was drawn down by $4.3 million to

pay for planned capital projects.

With respect to the business-type activities, the Water and Sewer Fund recorded operating

income of $3.8 million and an increase of $5.7 million in net assets during 2012. These

increases were attributable to higher operating revenues and infrastructure contributions from

developers.

The Aurora City Council approved three budget amendments during the year. A summary of the

content of those amendments follows.

Budget Amendment No. 1 served mainly to a) adjust the budget of the Safety, Health, and

Public Enhancement Fund by offsetting grant revenues and equipment expenditures of $1.0

million for a firefighting video training system and b) provide a total of $1.1 million in

Capital Improvements Fund A for the accomplishment of improvements to Station Boulevard

and Church Road in the City.




MD&A 12

Budget Amendment No. 2 provided a) $258,000 in the General Fund for extraordinary

vehicle repair costs and b) $50,000 in the Transit Centers Fund for greater-than-expected

costs for the construction of certain improvements at the Route 25 Transit Center.

Budget Amendment No. 3 served primarily to adjust the budget for a) transfers from the TIF

District #2 Fund to the TIF District #7 and #8 Funds totaling $15.6 million, b) offsetting

revenues and expenditures of $3.2 million in the Special Service Areas Fund related to the

refunding of debt certificates, c) offsetting revenues and expenditures of $6.4 million in the

2008A TIF Bond Project Fund pertaining to the construction of RiverEdge Park, d) offsetting

revenues and expenditures of $10.3 million related to the refunding of general obligation

bonds, and e) $1.8 million of general liability claims in the Property and Casualty Insurance

Fund that were higher than expected.

Capital Assets

The following schedule reflects the City’s capital asset balances as of December 31, 2012.

Table 4

Capital Assets


(in millions)

Governmental Business-Type

Activities Activities Total

2012 2011 2012 2011 2012 2011

Land and Land Right of Way 142.5$ 138.8$ 12.4$ 12.4$ 154.9$ 151.2$

Buildings and Land Improvements 168.4 180.6 99.1 98.3 267.5 278.9

Machinery, Vehicles, and Equipment 34.1 21.1 7.0 6.7 41.1 27.8

Works of Art 1.0 1.0 - - 1.0 1.0

Infrastructure 364.9 355.3 162.8 158.9 527.7 514.2

Construction in Progress 35.2 34.7 3.4 2.6 38.6 37.3

Less:

Accumulated Depreciation (175.3) (168.0) (87.4) (82.6) (262.7) (250.6)

Total 570.8$ 563.5$ 197.3$ 196.3$ 768.1$ 759.8$

At year-end, the City’s investment in capital assets for both its governmental and business-type

activities was $768.1 million (net of accumulated depreciation). This represents an increase of

1.1% from December 31, 2011.




MD&A 13

Major capital asset events during 2012 included the following:

The sale of the Aurora Community Center and the demolition of the old police headquarters

building resulted in decreases of $8.6 million and $2.4 million in the buildings and land

improvements of governmental activities, respectively.

The installation of a new public safety radio system led to an increase in construction in

progress and an increase in machinery, vehicles, and equipment of governmental activities of

$11.5 million.

Completion of the construction of several bridges in the City, including the Downer Place

bridges and the Wood Street bridge, contributed to a rise of $6.9 million in the infrastructure

and a corresponding decline in the construction in progress of governmental activities.

Contributions from developers led to an increase in the land and infrastructure of

governmental activities totaling $7.7 million.

The ongoing construction of RiverEdge Park along the Fox River gave rise to a $10.6 million

increase in the construction in progress of governmental activities.

Contributions from developers caused the infrastructure of business-type activities to

increase by a combined total of $3.4 million.

For more information on the City’s capital assets, see Note 4 in the notes to the financial

statements.




MD&A 14

Long-Term Debt

The table below summarizes the City’s bonded and similar indebtedness.

Table 5

Long-Term Debt


(in millions)

Governmental Business-Type

Activities Activities Total

2012 2011 2012 2011 2012 2011

General Obligation Bonds 147.0$ 155.3$ -$ -$ 147.0$ 155.3$

Revenue Bonds/Notes 17.1 19.0 32.8 34.0 49.9 53.0

Debt Certificates 2.7 6.8 - - 2.7 6.8

Notes Payable 6.0 8.1 - - 6.0 8.1

Illinois EPA Loans 1.4 1.5 9.2 9.9 10.6 11.4

Compensated Absences 13.8 13.4 1.8 1.7 15.6 15.1

Insurance Claims Payable 8.3 7.8 - - 8.3 7.8

Termination Benefits 0.1 0.3 - 0.1 0.1 0.4

Net Pension Obligation 3.4 2.1 - - 3.4 2.1

Net Other Post-Employment

Benefit Obligation 76.3 68.9 0.6 0.6 76.9 69.5

Unamortized Bond Premium 1.9 1.6 - - 1.9 1.6

Total 278.0$ 284.8$ 44.4$ 46.3$ 322.4$ 331.1$

As of December 31, 2012, the City had a total of $322.4 million of long-term debt outstanding.

Of this amount, $147.0 million was in the form of general obligation bonds backed by the full

faith and credit of the City government. Normally, the debt service on the general obligation

bonds is paid with a dedicated component of a local government's property tax levy. However,

for the past several years, the City abated a large portion of its property tax levy for debt service

and used revenues from other sources, especially gaming taxes and real estate transfer taxes, to

pay general obligation debt service. During 2012, the City paid off $11.2 million of bonds.

Additionally, $6.9 million and $3.2 million of the principal of the Series 2004A and 2004B

General Obligation Bonds was refunded during the year resulting in a present value savings of

about $890,000 (12.9%) and $250,000 (7.7%), respectively.

Also outstanding at the end of 2012 were $49.9 million of revenue bonds and notes. This

classification of bonded indebtedness includes water and sewer, golf course, and tax increment

revenue bonds and notes. Water and sewer service fees charged to the City’s residents and

businesses are covering the debt service on the water and sewer bonds. The golf bonds are being

repaid from fees charged at the City’s two golf courses and transfers from the Gaming Tax Fund.

Incremental property taxes generated in the City's Tax Increment Financing (TIF) Districts #2,




MD&A 15

#3, and #6 are being used to pay the debt service on TIF bonds and notes issued in 2004, 2008,

and 2009.

As an Illinois home-rule community, the City is not subject to any debt limitation. In September

of 2012, Standard and Poor’s Ratings Services affirmed the AA+ credit rating of the City’s

general obligation bonds. The AA+ rating indicates “the obligor's capacity to meet its financial

commitment(s) on (its) obligation(s) is very strong.” In affirming the rating, Standard & Poor’s

cited Aurora’s:

Participation in the Chicago Metropolitan Statistical Area’s diverse regional economy;

Strong median household effective buying income;

Stable financial performance with very strong reserve levels;

Strong financial management policies and procedures; and

Moderate debt burden with limited capital needs.

Near the end of 2008, Standard and Poor’s upgraded the rating on the City’s outstanding water

and sewer revenue bonds from AA to AA+. As reasons for the upgrade, the rating firm cited:

The City’s use of excess cash generated in the previous two years to refund much of the

water utility’s debt;

Good financial liquidity.

Strong debt service coverage.

Low leverage.

As indicated in Table 5, as of December 31, 2012, the City had $6.0 million of notes payable

outstanding. These notes have provided financing for certain economic development projects in

and around the City’s downtown area.

The City has accepted several low- or no-interest loans from the Illinois Environmental

Protection Agency (IEPA) to finance water and sewer improvements. The most recent loan,

accepted in 2010 from the IEPA, was in the amount of $2.7 million. The proceeds of the loan

were used to separate combined sewers in the area surrounding the City’s downtown.

The Net Pension Obligation (NPO) in Table 5 reflects the amount of contributions that the City

was required to make to the Illinois Municipal Retirement Fund, Aurora Police Pension Fund,

and the Aurora Firefighters’ Pension Fund that the City did not actually make through December

31, 2012 pursuant to generally accepted accounting principles. The City has generally paid the

full amount of the actuarially required contributions (ARCs) to the public safety pension funds

since 1999 in accordance with state law. (ARCs are calculated using different actuarial cost

methods under state law and generally accepted accounting principles.)




MD&A 16

The City implemented Statement No. 45 of the Governmental Accounting Standards Board

(Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than

Pensions) effective January 1, 2004. In connection with that accounting standard, the Net Other

Post-Employment Benefit Obligation (NOPEBO) included in Table 5 represents the amount of

contributions that the City was required to make but did not make to the Retiree Health Insurance

Trust Fund pursuant to actuarial calculations for the accrued cost of retiree health insurance from

2004 through 2011. The NOPEBO at December 31, 2012, was $76.9 million. In 2005, the City

implemented a policy calling for gradual funding of the annual required contribution for retiree

healthcare over the course of several years. In 2007, the City established a trust fund for the

management of assets and accounting of financial transactions associated with the provision of

retiree health insurance.

For more detailed information on the City’s bonded and similar indebtedness, see Note 5 in the

notes to the financial statements.

Economic Factors

The City’s property tax base possesses significant commercial and industrial components. The

value of commercial and industrial properties comprised 16.2% and 7.8%, respectively, of the

City’s total 2011 EAV of $3.6 billion. The 2006 – 2010 American Community Survey

conducted by the United States Bureau of the Census found that 94.1% of residential properties

had a value of $100,000 or more. The median home value was $205,600. Property taxes

imposed on property within the City’s corporate limits provide a stable revenue source. The

property of the City’s ten largest taxpayers during 2010 accounted for only 5.6% of the City’s

total EAV.

The City receives revenue from a variety of other sources other than property taxes. Two major

sales tax generators exist within the community. Since the 1970s, Westfield Shoppingtown Fox

Valley (formerly named the Fox Valley Mall) has been the City’s retail anchor. The mall is a 1.5

million square foot structure comprised of 160 stores. In mid-2004, Chicago Premium Outlets

was added to the tax base. This is an upscale, fashion-oriented outlet center with about 435,000

square feet of retail space and 120 stores.

Aurora saw major economic development progress in 2012. For example, Temple-Inland, a

manufacturer of corrugated packaging and building products, opened its 350,000 square-foot

manufacturing and distribution plant in the City’s Butterfield Business Park. The project created

125 jobs. Also, with the opening of its 300,000 square-foot distribution center in the White Oak

Business Park, Jel Sert Company brought about 50 jobs to the community. Jel Sert is a producer

of freezer bars, diet drinks, gelatins, puddings and frozen desserts. Moreover, Mazada North

America opened its new 250,000 square-foot parts distribution center in the Liberty Business

Center, creating 65 full-time jobs.




MD&A 17

According to the American Community Survey, the estimated median annual income for Aurora

households between 2006 and 2010 was $60,689. This compares favorably with the statewide

figure of $55,735.

The 2010 census found that Aurora’s population was 197,899. This was a 38.4% increase over

the 2000 population of 142,990. The increased census count has entitled the City to larger

portions of state-shared revenue such as income taxes and motor fuel taxes.

CONTACTING THE CITY’S FINANCIAL MANAGEMENT

This financial report is designed to provide our citizens, customers, investors and creditors with a

general overview of the City’s finances and to demonstrate the City’s accountability for the

money it receives. Questions concerning this report or requests for additional financial

information should be directed to Brian W. Caputo, Chief Financial Officer/City Treasurer, City

of Aurora, 44 East Downer Place, Aurora, Illinois 60507.

BASIC FINANCIAL STATEMENTS

Component

Unit

Governmental Business-Type Aurora

Activities Activities Total Public Library

ASSETS

Cash and Investments 140,988,737$ 22,744,499$ 163,733,236$ 27,996,710$

Restricted Cash and Investments - 1,995,849 1,995,849 -

Receivables, Net of Allowance

Where Applicable

Property Taxes

General and Pension Levies 64,815,751 - 64,815,751 9,638,809

Special Service Areas Levies 1,427,567 - 1,427,567 -

Other Taxes 18,271,596 - 18,271,596 -

Utility Customers - 5,588,344 5,588,344 -

Loans Receivable 462,166 - 462,166 -

Rental Fees 825,278 - 825,278 -

Interest 2,232 109,734 111,966 205,704

Miscellaneous 11,625,045 - 11,625,045 90,828

Inventory - 146,448 146,448 -

Due from Other Governments 6,944,557 6,626,204 13,570,761 1,037,306

Property Held for Resale 337,695 - 337,695 -

Prepaid Items 111,402 - 111,402 -

Other Postemployment Benefits Asset - 2,419,038 2,419,038 -

Capital Assets

Nondepreciable 178,705,204 15,774,823 194,480,027 5,128,617

Depreciable (Net of Accumulated

Depreciation) 392,136,758 181,538,488 573,675,246 7,310,596

Total Assets 816,653,988 236,943,427 1,053,597,415 51,408,570

DEFERRED OUTFLOWS OF RESOURCES

Unamortized Loss on Refunding 421,130 32,165 453,295 278

Total Deferred Outflows of Resources 421,130 32,165 453,295 278

Total Assets and Deferred Outflows

of Resources 817,075,118 236,975,592 1,054,050,710 51,408,848

Primary Government


STATEMENT OF NET POSITION

December 31, 2012

(This statement is continued on the following page.)- 4 -

Component

Unit

Governmental Business-Type Aurora

Activities Activities Total Public Library

LIABILITIES

Accounts Payable 6,753,520$ 1,239,165$ 7,992,685$ 132,129$

Accrued Payroll 10,900,746 639,469 11,540,215 446,231

Retainage Payable 1,180,298 5,761 1,186,059 -

Accrued Interest Payable 71,841 154,567 226,408 157,415

Other Unearned Revenue 16,657,742 823,756 17,481,498 19,914

Due to Other Governments 507,297 138,611 645,908 -

Due to Fiduciary Funds 25,421 - 25,421 -

Deposits Payable 1,103,615 645,821 1,749,436 -

Noncurrent Liabilities

Due Within One Year 19,598,918 1,877,897 21,476,815 971,201

Due in More than One Year 258,438,318 42,603,174 301,041,492 22,048,755

Total Liabilities 315,237,716 48,128,221 363,365,937 23,775,645

DEFERRED INFLOWS OF RESOURCES

Unavailable Revenue - Property Taxes 66,143,673 - 66,143,673 9,624,689

Total Deferred Inflows of Resources 66,143,673 - 66,143,673 9,624,689

Total Liabilities and Deferred Inflows

of Resources 381,381,389 48,128,221 429,509,610 33,400,334

NET POSITION

Net Investment in Capital Assets 418,850,676 160,897,280 579,747,956 9,297,151

Restricted for

Debt Service 1,823,882 3,184,371 5,008,253 62,306

Working Cash 442,550 - 442,550 -

Public Safety 18,852,666 - 18,852,666 -

Streets and Transportation 10,650,562 - 10,650,562 -

Health and Welfare 5,817,166 - 5,817,166 -

Economic Development 22,829,022 - 22,829,022 -

Unrestricted (43,572,795) 24,765,720 (18,807,075) 8,649,057

TOTAL NET POSITION 435,693,729$ 188,847,371$ 624,541,100$ 18,008,514$

December 31, 2012

Primary Government


STATEMENT OF NET POSITION (Continued)

See accompanying notes to financial statements.- 5 -

Operating Capital

Charges Grants and Grants and

FUNCTIONS/PROGRAMS Expenses for Services Contributions Contributions

PRIMARY GOVERNMENT

Governmental Activities

General Government 20,588,032$ 4,510,988$ -$ 57,462$

Public Safety 112,902,507 6,352,306 386,259 926,216

Streets and Transportation 29,621,587 581,212 5,782,775 10,561,802

Health and Welfare 12,825,038 9,233,448 3,043,691 2,974

Culture and Recreation 5,589,522 70,773 1,987,649 8,759,572

Economic Development 14,673,809 - - -

Interest 8,250,302 - 244,678 -

Total Governmental Activities 204,450,797 20,748,727 11,445,052 20,308,026

Business-Type Activities

Water and Sewer 27,923,402 30,113,165 - 4,173,659

Downtown Parking 1,427,840 807,228 - -

Commuter Parking 1,934,761 2,024,724 - -

Golf Operations 2,222,436 1,820,546 - -

Total Business-Type Activities 33,508,439 34,765,663 - 4,173,659

TOTAL PRIMARY GOVERNMENT 237,959,236$ 55,514,390$ 11,445,052$ 24,481,685$

COMPONENT UNIT

Aurora Public Library 10,827,434$ 195,785$ 277,776$ 837,306$

Special Item - Disposal of Property

Transfers

CHANGE IN NET POSITION

NET POSITION, JANUARY 1

Prior Period Adjustment

NET POSITION, JANUARY 1, RESTATED

NET POSITION, DECEMBER 31

Program Revenues


STATEMENT OF ACTIVITIES

For the Year Ended December 31, 2012

- 6 -

Component

Unit

Aurora

Governmental Business-Type Public

Activities Activities Total Library

(16,019,582)$ -$ (16,019,582)$ -$

(105,237,726) - (105,237,726) -

(12,695,798) - (12,695,798) -

(544,925) - (544,925) -

5,228,472 - 5,228,472 -

(14,673,809) - (14,673,809) -

(8,005,624) - (8,005,624) -

(151,948,992) - (151,948,992) -

- 6,363,422 6,363,422 -

- (620,612) (620,612) -

- 89,963 89,963 -

- (401,890) (401,890) -

- 5,430,883 5,430,883 -

(151,948,992) 5,430,883 (146,518,109) -

- - - (9,516,567)

General Revenues

Taxes

Property and Replacement 79,226,198 - 79,226,198 9,487,168

Sales 41,957,531 444,665 42,402,196 -

Utility 10,163,505 - 10,163,505 -

Income 17,388,869 - 17,388,869 -

Real Estate Transfer 1,921,008 - 1,921,008 -

Food and Beverage Tax 4,002,735 - 4,002,735 -

Gaming Tax 9,044,541 - 9,044,541 -

Hotel/Motel 463,512 - 463,512 -

Other 1,019,382 - 1,019,382 -

Investment Income 197,271 316,187 513,458 4,097

Miscellaneous 1,306,832 9,629 1,316,461 165,080

Special Item - Disposal of Property (4,973,299) - (4,973,299) -

Transfers 725,000 (725,000) - -

Total 162,443,085 45,481 162,488,566 9,656,345

CHANGE IN NET POSITION 10,494,093 5,476,364 15,970,457 139,778

NET POSITION, JANUARY 1 426,390,798 183,741,528 610,132,326 17,906,119

Prior Period Adjustment (1,191,162) (370,521) (1,561,683) (37,383)

NET POSITION, JANUARY 1, RESTATED 425,199,636 183,371,007 608,570,643 17,868,736

NET POSITION, DECEMBER 31 435,693,729$ 188,847,371$ 624,541,100$ 18,008,514$

Primary Government

Net (Expense) Revenue and Change in Net Position


Other Total

Debt Governmental Governmental

General Service Funds Funds

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

ASSETS



Where Applicable

Property Taxes

General and Pension Levies 60,855,751 3,960,000 - 64,815,751

Special Service Areas Levies - - 1,427,567 1,427,567

Other Taxes 16,885,445 - 1,386,151 18,271,596

Loans Receivable - - 2,534,350 2,534,350

Interest - 6,208 646,651 652,859

Rental Fees - - 2,232 2,232

Miscellaneous 8,632,129 - 2,984,167 11,616,296

Due from Other Governments 324,947 1,129,750 5,489,860 6,944,557

Due from Other Funds - - 11,917,783 11,917,783

Prepaid Items - - 15,695 15,695

Property Held for Resale - - 337,695 337,695

Total Assets 112,342,239 6,916,347 114,454,011 233,712,597


None - - - -

Total Deferred Outflows of Resources - - - -

TOTAL ASSETS AND DEFERRED

OUTFLOWS OF RESOURCES 112,342,239$ 6,916,347$ 114,454,011$ 233,712,597$


ASSETS AND DEFERRED OUTFLOWS

December 31, 2012

GOVERNMENTAL FUNDS

BALANCE SHEET

OF RESOURCES

- 8 -

Other Total





LIABILITIES

Accounts Payable 2,228,324$ 2,715$ 4,395,510$ 6,626,549$

Accrued Payroll 10,872,872 - 6,055 10,878,927

Retainage Payable - - 1,180,298 1,180,298

Deposits Payable 1,094,415 - 9,200 1,103,615

Unearned Revenue 9,166,869 1,129,750 8,518,057 18,814,676

Due to Other Funds 6,500,000 - 5,417,783 11,917,783

Due to Fiduciary Funds 25,421 - - 25,421

Due to Other Governments 485,856 - 21,441 507,297



Unavailable Revenue - Property Taxes 60,756,201 3,960,000 1,427,472 66,143,673

Total Deferred Inflows of Resources 60,756,201 3,960,000 1,427,472 66,143,673

Total Liabilities and Deferred Inflows

of Resources 91,129,958 5,092,465 20,975,816 117,198,239

FUND BALANCES

Nonspendable

Prepaid Items - - 15,695 15,695

Restricted

Debt Service - 1,823,882 - 1,823,882

Working Cash - - 442,550 442,550

Public Safety - - 18,852,666 18,852,666

Streets and Transportation - - 10,650,562 10,650,562

Health and Welfare - - 5,817,166 5,817,166

Economic Development - - 22,829,022 22,829,022

Capital Projects - - 3,326,889 3,326,889

Unrestricted

Assigned

Public Safety - - 74,955 74,955

Health and Welfare - - 348,099 348,099

Capital Projects - - 34,334,642 34,334,642

Specific Purposes - - - -

Unassigned 21,212,281 - (3,214,051) 17,998,230

Total Fund Balances 21,212,281 1,823,882 93,478,195 116,514,358

TOTAL LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCES 112,342,239$ 6,916,347$ 114,454,011$ 233,712,597$


FUND BALANCES OF GOVERNMENTAL FUNDS 116,514,358$

Amounts reported for governmental activities in the

statement of net position are different because:

Capital assets used in governmental activities are

not financial resources and, therefore, are not

reported in the governmental funds 570,841,962

Other long-term receivables are not available to pay for

current period expenditures and, therefore, are

deferred in the governmental funds 84,750

Premiums or discounts on long-term liabilities

and gains and losses on debt refundings are capitalized

and amortized at the government-wide level (1,452,999)

Interest on long-term liabilities is not accrued in governmental

funds, but rather is recognized as an expenditure when due (71,841)

Long-term liabilities, including bonds payable, are

not due and payable in the current period and,

therefore, are not reported in the governmental funds

General obligation bonds (147,040,000)

Tax increment revenue bonds (17,190,000)

Installment contracts (2,720,000)

Notes payable (6,018,326)

Illinois EPA loan (1,360,175)

Compensated absences (13,808,964)

Insurance claims payable (8,261,814)

Termination benefits (60,524)

Net pension obligation (3,362,275)

Net other postemployment benefits obligation (76,341,029)

Less amounts included in internal service funds below 22,070,778

The net position of the internal service funds is

included in the governmental activities in the

statement of net position 3,869,828

NET POSITION OF GOVERNMENTAL ACTIVITIES 435,693,729$

December 31, 2012


RECONCILIATION OF FUND BALANCES OF GOVERNMENTAL FUNDS TO THE

GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION



STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS


Other Total



REVENUES

Property Taxes 60,148,522$ 4,000,885$ 12,956,814$ 77,106,221$

Other Taxes 64,934,190 1,921,008 21,636,823 88,492,021

Intergovernmental 1,175,006 444,678 21,346,092 22,965,776

Licenses, Fees and Permits 6,974,853 - 49,708 7,024,561

Impact Fees - - 30,600 30,600

Recovery of Costs - - 746,605 746,605

Charges for Services 4,434,260 - 7,637,981 12,072,241

Fines and Forfeits 2,535,273 - - 2,535,273

Development Participation - 95 - 95

Investment Income 20,583 639 176,049 197,271

Donations - - 37,000 37,000

Other 272,695 - 239,878 512,573

Total Revenues 140,495,382 6,367,305 64,857,550 211,720,237

EXPENDITURES

Current

General Government 16,837,826 - 679,814 17,517,640

Public Safety 100,267,856 - 3,251,520 103,519,376

Streets and Transportation 10,440,927 - 7,217,030 17,657,957

Health and Welfare 6,257,915 - 5,334,052 11,591,967

Culture and Recreation 4,060,108 - 1,629,073 5,689,181

Economic Development 2,102,717 - 12,539,907 14,642,624

Capital Outlay - - 24,522,214 24,522,214

Debt Service

Principal - 20,330,000 5,991,707 26,321,707

Interest and Other Charges - 7,039,449 1,569,114 8,608,563

Total Expenditures 139,967,349 27,369,449 62,734,431 230,071,229

EXCESS (DEFICIENCY) OF REVENUES

OVER EXPENDITURES 528,033 (21,002,144) 2,123,119 (18,350,992)

OTHER FINANCING SOURCES (USES)

Transfers In - 10,939,800 17,826,600 28,766,400

Transfers (Out) (300,000) - (27,741,400) (28,041,400)

Proceeds from the Sale of Capital Assets - - 2,978,132 2,978,132

Refunding Bonds Issued - 10,070,000 3,095,000 13,165,000

Premium on Refunding Bonds Issued - 285,676 181,179 466,855

Total Other Financing Sources (Uses) (300,000) 21,295,476 (3,660,489) 17,334,987

NET CHANGE IN FUND BALANCES 228,033 293,332 (1,537,370) (1,016,005)

FUND BALANCES, JANUARY 1 20,984,248 1,530,550 95,015,565 117,530,363

FUND BALANCES, DECEMBER 31 21,212,281$ 1,823,882$ 93,478,195$ 116,514,358$


NET CHANGE IN FUND BALANCES -

TOTAL GOVERNMENTAL FUNDS (1,016,005)$

Amounts reported for governmental activities in the statement of

activities are different because:

Governmental funds report capital outlay as expenditures; however, they are

capitalized and depreciated in the statement of activities 18,517,482

Contributions of capital assets are reported only in the statement of activities 9,218,731

The issuance of long-term debt and related costs are shown

on the fund financial statements as other financing sources (uses)

and current expenditures, but are recorded as long-term

liabilities and deferred outflows of resources on the

government-wide statements

Issuance of refunding bonds (13,165,000)

Payment of refunded bonds 10,160,000

Premium on issuance of bonds (466,855)

Loss on refunding 321,855

The repayment of long-term debt is reported as an expenditure when due

in governmental funds but as a reduction of principal outstanding in the

statement of activities 18,479,175

Changes in net pension assets/obligations are reported only in the statement

of activities (1,214,803)

The change in the accrual of interest is reported as a reduction of interest

expense on the statement of activities (56,778)

Changes in net other postemployment benefits obligations are reported only

in the statement of activities (7,448,974)

Revenues in the statement of activities that are not available in governmental

funds are not reported as revenue in governmental funds until received (1,745,779)

Some expenses in the statement of activities do not require the use of

current financial resources and, therefore, are not reported as

expenditures in governmental funds

Depreciation (12,482,247)

Amortization of bond premiums 248,141

Amortization of gain or loss on refunding (154,957)

Loss on disposal of capital assets (special item) (7,951,431)

The change in net position of internal service funds is reported with governmental

activities (748,462)

CHANGES IN NET POSITION OF GOVERNMENTAL ACTIVITIES 10,494,093$



RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,

GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES

EXPENDITURES AND CHANGES IN FUND BALANCES TO THE



STATEMENT OF NET POSITION

PROPRIETARY FUNDS

December 31, 2012

Governmental

Activities

Other Internal

Water and Enterprise Service

Sewer Fund Funds Total Funds

CURRENT ASSETS


Restricted Cash and Investments 1,573,940 421,909 1,995,849 -

Receivables

Accounts, Net of Allowance 5,236,624 351,720 5,588,344 -

Interest 106,368 3,366 109,734 172,419

Miscellaneous - - - 8,749

Due from Other Funds - - - 1,700,000

Due from Other Governments - 124,486 124,486 -

Prepaid Items - - - 95,707

Inventory 146,448 - 146,448 -

Total Current Assets 27,717,480 2,991,880 30,709,360 27,789,396

NONCURRENT ASSETS

Due from Other Governments 6,501,718 - 6,501,718 -

Other Postemployment Benefits Asset 1,976,175 442,863 2,419,038 -

Capital Assets

Nondepreciable 6,535,567 9,239,256 15,774,823 -

Depreciable (Net of

Accumulated Depreciation) 165,626,852 15,911,636 181,538,488 -

Total Capital Assets 172,162,419 25,150,892 197,313,311 -

Total Noncurrent Assets 180,640,312 25,593,755 206,234,067 -

Total Assets 208,357,792 28,585,635 236,943,427 27,789,396

DEFERRED OUTFLOW OF RESOURCES

Unamortized Loss on Refunding - 32,165 32,165 -

Total Deferred Outflows of Resources - 32,165 32,165 -

Total Assets and Deferred

Outflows of Resources 208,357,792 28,617,800 236,975,592 27,789,396




STATEMENT OF NET POSITION (Continued)

PROPRIETARY FUNDS

December 31, 2012

Governmental

Activities

Other Internal



CURRENT LIABILITIES

Accounts Payable 1,140,012$ 99,153$ 1,239,165$ 126,971$

Accrued Payroll 508,058 131,411 639,469 21,819

Retainage Payable 5,761 - 5,761 -

Accrued Interest Payable 154,567 - 154,567 -

Other Unearned Revenue 390,296 433,460 823,756 -

Due to Other Funds - - - 1,700,000

Due to Other Governments 138,611 - 138,611 -

Claims Payable - - - 735,216

Compensated Absences Payable 73,331 14,977 88,308 690,448

Termination Benefits 22,319 15,886 38,205 -

Illinois EPA Loan Payable,

Due Within One Year 701,384 - 701,384 -

Bonds Payable, Due Within One Year 695,000 355,000 1,050,000 -

Total Current Liabilities 3,829,339 1,049,887 4,879,226 3,274,454

NONCURRENT LIABILITIES

Deposits Payable 645,821 - 645,821 -

Compensated Absences Payable 1,393,281 284,572 1,677,853 13,118,516

Termination Benefits - - - -

Other Postemployment Benefits Obligation - 629,281 629,281 -

Claims Payable - - - 7,526,598

Illinois EPA Loan Payable (Less 8,544,207 - 8,544,207 -

Current Portion)

Bonds Payable (Less Current Portion) 29,395,000 2,356,833 31,751,833 -

Total Noncurrent Liabilities 39,978,309 3,270,686 43,248,995 20,645,114


NET POSITION

Net Investment in Capital Assets 138,458,221 22,439,059 160,897,280 -

Restricted for Debt Service 2,762,462 421,909 3,184,371 -

Unrestricted 23,329,461 1,436,259 24,765,720 3,869,828

TOTAL NET POSITION 164,550,144$ 24,297,227$ 188,847,371$ 3,869,828$




STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN FUND NET POSITION

PROPRIETARY FUNDS


Governmental

Activities

Other Internal



OPERATING REVENUES

Charges for Services 30,113,165$ 4,650,156$ 34,763,321$ 23,717,754$

Other - 2,342 2,342 -

Total Operating Revenues 30,113,165 4,652,498 34,765,663 23,717,754

OPERATING EXPENSES

EXCLUDING DEPRECIATION

Personnel Services 9,587,640 2,607,151 12,194,791 -

Materials and Supplies 3,970,865 714,693 4,685,558 -

Other Services and Charges 7,213,052 1,180,625 8,393,677 24,487,210

Miscellaneous 1,379,429 127,582 1,507,011 -

Total Operating Expenses Excluding Depreciation 22,150,986 4,630,051 26,781,037 24,487,210

OPERATING INCOME (LOSS)

BEFORE DEPRECIATION 7,962,179 22,447 7,984,626 (769,456)

DEPRECIATION 4,140,698 765,250 4,905,948 -

OPERATING INCOME (LOSS) 3,821,481 (742,803) 3,078,678 (769,456)

NONOPERATING REVENUES (EXPENSES)

Sales Tax - 444,665 444,665 -

Investment Income 312,578 3,609 316,187 20,994

Gain on Sale of Property 8,680 - 8,680 -

Recovery of Cost 9,629 - 9,629 -

Interest Expense (1,549,519) (189,736) (1,739,255) -

Intergovernmental Expense (90,879) - (90,879) -

Total Nonoperating Revenues (Expenses) (1,309,511) 258,538 (1,050,973) 20,994

INCOME (LOSS) BEFORE CONTRIBUTIONS

AND TRANSFERS 2,511,970 (484,265) 2,027,705 (748,462)

TRANSFERS

Transfers In - 275,000 275,000 1,700,000

Transfers (Out) (1,000,000) - (1,000,000) (1,700,000)

Total Transfers (1,000,000) 275,000 (725,000) -

CONTRIBUTIONS 4,173,659 - 4,173,659 -

CHANGE IN NET POSITION 5,685,629 (209,265) 5,476,364 (748,462)

NET POSITION, JANUARY 1 159,235,036 24,506,492 183,741,528 4,618,290

Prior Period Adjustment (370,521) - (370,521) -

NET POSITION, JANUARY 1, RESTATED 158,864,515 24,506,492 183,371,007 4,618,290

NET POSITION, DECEMBER 31 164,550,144$ 24,297,227$ 188,847,371$ 3,869,828$




STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS


Governmental

Activities

Other Internal



CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from Customers and Users 29,875,829$ 4,632,292$ 34,508,121$ 3,556,741$

Receipts from Interfund Services - - - 20,176,269

Payments to Suppliers (12,141,517) (2,152,153) (14,293,670) (22,920,056)

Payments to Employees/Retirees (9,457,122) (2,534,303) (11,991,425) (766,449)

Net Cash from Operating Activities 8,277,190 (54,164) 8,223,026 46,505

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES

Recovery of Costs 9,629 - 9,629 -

Intergovernmental Income 146,695 444,665 591,360 -

Due to/from Other Funds - - - -

Transfers In (Out) (1,000,000) 275,000 (725,000) -

Net Cash from Noncapital

Financing Activities (843,676) 719,665 (124,011) -

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES

Property, Plant and Equipment

Acquired or Constructed (1,639,819) (119,736) (1,759,555) -

Bond Proceeds - 2,714,281 2,714,281 -

Principal Paid on Bonds and Illinois EPA Loans (1,346,876) (3,245,000) (4,591,876) -

Intergovernmental Infrastructure Charges (90,879) - (90,879) -

Interest and Fiscal Agents' Fees (1,548,816) (291,090) (1,839,906) -

Net Cash from Capital and

Related Financing Activities (4,626,390) (941,545) (5,567,935) -

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from Sale and Maturities

on Investment Securities 14,679,611 - 14,679,611 11,625,000

Purchase of Investment Securities (18,560,195) (485,695) (19,045,890) (14,168,841)

Interest on Investments 312,578 4,396 316,974 627,685

Net Cash from Investing Activities (3,568,006) (481,299) (4,049,305) (1,916,156)

NET INCREASE (DECREASE) IN CASH AND

CASH EQUIVALENTS (760,882) (757,343) (1,518,225) (1,869,651)

CASH AND CASH EQUIVALENTS, JANUARY 1 4,959,825 1,875,829 6,835,654 6,091,405

CASH AND CASH EQUIVALENTS, DECEMBER 31 4,198,943$ 1,118,486$ 5,317,429$ 4,221,754$



Governmental

Activities

Other Internal



RECONCILIATION OF OPERATING INCOME

(LOSS) TO NET CASH FLOWS FROM

OPERATING ACTIVITIES

Operating Income (Loss) 3,821,481$ (742,803)$ 3,078,678$ (769,456)$

Adjustments to Reconcile Operating Income

(Loss) to Net Cash from Operating Activities

Depreciation 4,140,698 765,250 4,905,948 -

(Increase) Decrease in

Accounts Receivable (237,336) (13,049) (250,385) 15,256

Interfund Service Receivable - - - -

Prepaid Expenses - - - 31,902

Inventory 68,731 - 68,731 -

Increase (Decrease) in

Accounts Payable 170,758 (129,253) 41,505 (103,882)

Accrued Payroll 26,506 396 26,902 373

Claims Payable - - 445,409

Other Unearned Revenue 165,752 (7,158) 158,594 -

Deposits 16,588 - 16,588 -

Compensated Absences 42,307 6,359 48,666 426,903

Termination Benefits - (16,661) (16,661) -

Other Postemployment Benefits Obligation/Asset 61,705 82,755 144,460 -

NET CASH FROM OPERATING ACTIVITIES 8,277,190$ (54,164)$ 8,223,026$ 46,505$

CASH AND INVESTMENTS

Cash and Cash Equivalents 4,198,943$ 1,118,486$ 5,317,429$ 4,221,754$

Investments 18,029,097 1,393,822 19,422,919 21,590,767

TOTAL CASH AND INVESTMENTS 22,228,040$ 2,512,308$ 24,740,348$ 25,812,521$

NONCASH TRANSACTIONS

Contributions of Capital Assets 4,173,659$ -$ 4,173,659$ -$

Unrealized Gain/Loss on Investments - - (612,087)

TOTAL NONCASH TRANSACTIONS 4,173,659$ -$ 4,173,659$ (612,087)$



STATEMENT OF CASH FLOWS (Continued)

PROPRIETARY FUNDS




STATEMENT OF FIDUCIARY NET POSITION

December 31, 2012

Pension

and OPEB

Trust Agency

Funds Funds

ASSETS

Cash and Short-Term Investments 224,921$ 39,496$

Investments, at Fair Value

Money Market Mutual Funds 7,753,459 -

Illinois Funds 3,794,197 -

Negotiable Certificates of Deposit 10,049,965 -

U.S. Treasury Securities 54,111,105 -

U.S. Agency Securities 13,936,717 -

Corporate Bonds 41,295,583 -

Municipal Bonds 59,180 -

Foreign Bonds 235,761 -

Corporate Equity Securities 73,312,429 -

Equity Mutual Funds 82,924,027 -

Accrued Interest 1,763,686 -

Accounts Receivable 14,828 -

Due from General Fund 25,421 -

Prepaid Expenses 12,478 -

Total Assets 289,513,757 39,496$

LIABILITIES

Accounts Payable 175,528 -$

Benefits Payable 549,995 -

Due to Others - 39,496

Total Liabilities 725,523 39,496$

NET POSITION HELD IN TRUST FOR

PENSION/OPEB BENEFITS 288,788,234$



STATEMENT OF CHANGES IN FIDUCIARY NET POSITION


ADDITIONS

Contributions

Employer Contributions 21,031,359$

Employee Contributions 6,831,496

Total Contributions 27,862,855

Investment Income

Net Appreciation in Fair

Value of Investments 19,309,538

Interest 7,634,493

Total Investment Income 26,944,031

Less Investment Expense (985,617)

Net Investment Income 25,958,414

Total Additions 53,821,269

DEDUCTIONS

Benefits 27,677,466

Administrative Expenses 119,453

Total Deductions 27,796,919

NET INCREASE 26,024,350

NET POSITION HELD IN TRUST

FOR PENSION/OPEB BENEFITS

January 1 262,763,884

December 31 288,788,234$


NOTES TO FINANCIAL STATEMENTS

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INDEX TO NOTES TO FINANCIAL STATEMENTS

December 31, 2012

Footnote Page

Number Description Number(s)

1 Summary of Significant Accounting Policies 21-30

2 Property Taxes 30

3 Cash and Investments 31-37

4 Capital Assets 37-39

5 Long-Term Debt 39-45

6 Revenue Bonds 46

7 Deferred Compensation Plan 47

8 Industrial and Mortgage Revenue Bonds 47

9 Defined Benefit Pension Plans 47-53

10 Risk Management 54-55

11 Contingent Liabilities 56

12 Development Assistance 56

13 Interfund Accounts 56-57

14 Intergovernmental Agreement 58-59

15 Other Postemployment Benefits 59-62

16 Special Item 62

17 Prior Period Adjustment 62

18 Component Unit - Aurora Public Library 63-67

- 20 -

- 21 -


NOTES TO FINANCIAL STATEMENTS

December 31, 2012

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements of the City of Aurora, Illinois (the City) have been prepared in

conformity with accounting principles generally accepted in the United States of America,

as applied to government units (hereinafter referred to as generally accepted accounting

principles (GAAP)). The Governmental Accounting Standards Board (GASB) is the

accepted standard-setting body for establishing governmental accounting and financial

reporting principles. The more significant of the City’s accounting policies are described

below.

A. Reporting Entity

The City was incorporated in 1857 and is a municipal corporation governed by an

elected board under the mayor/council form of government. It is a “home rule” unit

under the Illinois Constitution. As required by GAAP, these financial statements

present the City (the primary government) and its component units. In evaluating

how to define the reporting entity, management has considered all potential

component units. The decision to include a potential component unit in the reporting

entity was based upon the significance of its operational or financial relationship with

the primary government.

Discretely Presented Component Unit

The component unit column in the basic financial statements includes the financial

data of the City’s component unit. It is reported in a separate column to emphasize

that it is legally separate from the City.

The Aurora Public Library

The Aurora Public Library (the Library) operates and maintains the City’s public

library facilities. The Library’s Board is appointed by the Mayor with the consent of

the City Council. The Library may not issue bonded debt without City Council’s

approval and its annual budget and property tax levy request are subject to the City

Council’s approval. Separate audited financial statements as of December 31, 2012

are available from the Library’s administrative offices located at 1 E. Benton Street,

Aurora, Illinois 60505.

- 21 -


NOTES TO FINANCIAL STATEMENTS (Continued)

- 22 -

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

B. Fund Accounting

The City uses funds to report on its financial position and changes in its financial

position. Fund accounting is designed to demonstrate legal compliance and to aid

financial management by segregating transactions related to certain government

functions or activities.

A fund is a separate accounting entity with a self-balancing set of accounts. The

minimum number of funds are maintained consistent with legal and managerial

requirements.

Funds are classified into the following categories: governmental, proprietary and

fiduciary.

Governmental funds are used to account for all or most of the City’s general

activities, including the collection and disbursement of restricted or committed

monies (special revenue funds), the funds committed, restricted or assigned for the

acquisition or construction of capital assets (capital projects funds), the funds

committed, restricted or assigned for the servicing of long-term debt (debt service

funds) and the management of funds held in trust where the interest earnings can be

used for governmental services (permanent fund). The general fund is used to

account for all activities of the general government not accounted for in some other

fund.

Proprietary funds are used to account for activities similar to those found in the

private sector, where the determination of net income is necessary or useful for sound

financial administration. Goods or services from such activities can be provided

either to outside parties (enterprise funds) or to other departments or agencies

primarily within the government (internal service funds).

Fiduciary funds are used to account for assets held on behalf of outside parties,

including other governments, or on behalf of other funds within the government.

The City utilizes pension trust funds and agency funds which are generally used to

account for assets that the City holds in a fiduciary capacity or on behalf of others as

their agent.

- 22 -



- 23 -


C. Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net position and the

statement of activities) report information on all of the nonfiduciary activities of the

City. The effect of material interfund activity has been eliminated from these

statements. Governmental activities, which normally are supported by taxes and

intergovernmental revenues, are reported separately from business-type activities,

which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a

given function, segment or program are offset by program revenues. Direct expenses

are those that are clearly identifiable with a specific function or segment. Program

revenues include (1) charges to customers or applicants who purchase, use or directly

benefit from goods, services or privileges provided by a given function or segment and

(2) grants and standard revenues that are restricted to meeting the operational or capital

requirements of a particular function or segment. Taxes and other items not properly

included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds, proprietary funds

and fiduciary funds, even though the latter are excluded from the government-wide

financial statements. Major individual governmental funds and major individual

enterprise funds are reported as separate columns in the fund financial statements.

The City reports the following major governmental funds:

The General Fund is the City’s primary operating fund. It accounts for all

financial resources of the general government, except those accounted for in

another fund.

The Debt Service Fund accounts for the City’s principal and interest payments

related to general government debt issued.

The City reports the following major proprietary funds:

The Water and Sewer Fund accounts for the activities of the water operations and

sewer collection system. The City operates the water treatment plant, sewerage

pumping stations and collection systems and the water distribution system.

- 23 -



- 24 -


C. Government-Wide and Fund Financial Statements (Continued)

Additionally, the City reports the following proprietary fund type:

Internal Service Funds account for the City’s self-insured property, casualty,

workers’ compensation and health insurance programs and the employee

benefits, including vacation, sick leave and severance provided to other

departments or agencies of the City on a cost reimbursement basis. These are

reported as part of the governmental activities on the government-wide financial

statements as they provide services to the City’s governmental funds/activities.

The City reports pension and other postemployment benefit (OPEB) trust funds as

fiduciary funds to account for the Police Pension Fund, Firefighters’ Pension Fund and

Retiree Health Insurance Trust Fund. Furthermore, the City reports the following

agency funds as fiduciary funds: Section 125 Medical Fund, Section 125 Dependent

Care Fund and the CN/EJE Coalition Fund.

D. Measurement Focus, Basis of Accounting and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources

measurement focus and the accrual basis of accounting, as are the proprietary fund and

fiduciary fund financial statements (except the agency funds which do not have a

measurement focus). Revenues and additions are recorded when earned and expenses

and deductions are recorded when a liability is incurred. Property taxes are recognized

as revenues in the year for which they are levied (i.e., intended to finance). Grants and

similar items are recognized as revenue as soon as all eligibility requirements imposed

by the provider have been met. Operating revenues/expenses include all

revenues/expenses directly related to providing enterprise fund services. Incidental

revenues/expenses are reported as nonoperating.

Governmental fund financial statements are reported using the current financial

resources measurement focus and the modified accrual basis of accounting. Revenues

are recognized as soon as they are both “measurable” and “available.” Revenues are

considered to be available when they are collectible within the current period or soon

enough thereafter to pay liabilities of the current period. The City considers revenues

to be available if they are collected within 60 days of the end of the current fiscal

period, except for sales taxes and telecommunication taxes which use a 90-day period

and income taxes which use a 120-day period (due to a temporary slowdown in

remittance from the state). Expenditures generally are recorded when a fund liability is

incurred. However, debt service expenditures are recorded only when payment is due,

unless due the first day of the following fiscal year.

- 24 -



- 25 -


D. Measurement Focus, Basis of Accounting and Financial Statement Presentation

(Continued)

Property taxes, sales taxes and telecommunication taxes owed to the state at year end,

utility taxes, franchise taxes, licenses, charges for services, food and beverage taxes and

interest associated with the current fiscal period are all considered to be susceptible to

accrual and are recognized as revenues of the current fiscal period. Fines and permit

revenue are considered to be measurable and available only when cash is received by

the City.

In applying the susceptible to accrual concept to intergovernmental revenues (i.e.,

federal and state grants), the legal and contractual requirements of the numerous

individual programs are used as guidance. There are, however, essentially two types

of these revenues. In one, monies must be expended on the specific purpose or

project before any amounts will be paid to the City; therefore, revenues are

recognized based upon the expenditures recorded. In the other, monies are virtually

unrestricted as to purpose of expenditure and are generally revocable only for failure

to comply with prescribed eligibility requirements, such as equal employment

opportunity. These resources are reflected as revenues at the time of receipt or

earlier if they meet the availability criterion.

The City reports unavailable/unearned revenue on its financial statements.

Unavailable/unearned revenues arise when a potential revenue does not meet both

the measurable and available or earned criteria for recognition in the current period.

Unavailable/unearned revenues also arise when resources are received by the City

before it has a legal claim to them or prior to the provision of services, as when grant

monies are received prior to the incurrence of qualifying expenditures. In subsequent

periods, when both revenue recognition criteria are met, or when the City has a legal

claim to the resources, the unavailable/unearned revenue is removed from the

financial statements and revenue is recognized.

E. Cash and Investments

Cash and Cash Equivalents

For purposes of the statement of cash flows, the City’s proprietary funds consider

their demand deposits and all highly liquid investments with an original maturity of

three months or less when purchased to be cash equivalents.

- 25 -



- 26 -


E. Cash and Investments (Continued)

Investments

City investments with a maturity of one year or less when purchased and

nonnegotiable certificates of deposit are stated at amortized cost. City investments

with a maturity greater than one year when purchased are reported at fair value. All

investments in the pension and other postemployment benefit (OPEB) trust funds are

stated at fair value. Fair value is based on quoted market prices at December 31 for

debt securities, equity securities and mutual funds and contract values for insurance

contracts. Illinois Funds, an investment pool created by the state legislature under

the control of the State Treasurer, is a money market mutual fund that maintains a $1

per share value.

F. Property Taxes

Property taxes are recognized as receivable in the year that they attach as an

enforceable lien and are levied. Funds utilizing the modified accrual basis of

accounting treat property taxes receivable as unavailable revenue until the

measurable and available criteria have been met (the year intended to finance and

collected within 60 days after year end). On the accrual basis, property taxes are

recognized as revenue in the year intended to finance, regardless of when collected.

Property taxes receivable more than one year old have been fully offset by an

allowance account.

G. Inventory

Inventory is valued at the lower of cost or market on a first-in/first-out (FIFO) basis.

H. Restricted Assets

Restricted assets in governmental activities/funds include cash with paying agent in

the debt service fund.

Enterprise funds, based on certain bond covenants, are required to establish and

maintain prescribed amounts of resources (consisting of cash and temporary

investments) that can be used only for specified purposes indicated in the bond

ordinances.

I. Prepaid Items/Expenses

Payments made to vendors for services that will benefit periods beyond the date of this

report are recorded as prepaid items/expenses.

- 26 -



- 27 -


J. Capital Assets

Capital assets, which include property, plant, equipment and infrastructure assets (e.g.,

roads, bridges, sidewalks and similar items), are reported in the applicable

governmental or business-type activities columns in the government-wide financial

statements. Capital assets are defined by the City as assets with an initial, individual

cost in excess of the following and an estimated useful life in excess of one year.

Asset Class

Capitalization

Threshold

Land $ -

Building Improvements, Land Improvements

and Infrastructure (All Systems)

100,000

Intangible Assets 100,000

Vehicles, Machinery, Furniture and Equipment 50,000

Works of Art, Historical Artifacts 50,000

Such assets are recorded at historical cost or estimated historical cost if purchased or

constructed. Donated capital assets are recorded at estimated fair market value at the

date of donation.

The costs of normal maintenance and repairs, including street overlays that do not add

to the value of the asset or materially extend asset lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are

constructed. Interest incurred during the construction phase of capital assets of

business-type activities is included as part of the capitalized value of the assets

constructed. Property, plant and equipment is depreciated using the straight-line

method over the following estimated useful lives:

Assets Years

Buildings, Land Improvements and Infrastructure 20-65

Vehicles 8

Machinery, Furniture and Equipment, Software 5-15

- 27 -



- 28 -


K. Vacation, Sick Pay and Other Employee Benefits

Accumulated unpaid vacation, sick pay and other employee benefit amounts for

governmental funds are accrued in these funds as a current liability to the extent that

employees have retired or terminated at year end but have not been paid. The

remaining liability is reported in the Employee Compensated Benefits Fund (an

internal service fund).

Accumulated unpaid vacation, sick pay and other employee benefit amounts for

proprietary funds are recorded as earned by employees in those funds.

L. Interfund Transactions

Interfund service transactions are accounted for as revenues, expenditures or

expenses. Transactions that constitute reimbursements to a fund for

expenditures/expenses initially made from it that are properly applicable to another

fund, are recorded as expenditures/expenses in the reimbursing fund and as

reductions of expenditures/expenses in the fund that is reimbursed.

All other interfund transactions, except interfund service transactions and

reimbursements, are reported as transfers.

M. Interfund Receivables/Payables

Activity between funds that are representative of lending/borrowing arrangements

outstanding at the end of the fiscal year are referred to as either “due to/from other

funds” (i.e., the current portion of interfund loans) or “advances to/from other funds”

(i.e., the noncurrent portion of interfund loans). All other outstanding balances

between funds are reported as “due to/from other funds.”

Advances between funds, as reported in the fund financial statements, are offset by a

fund balance nonspendable account in applicable governmental funds to indicate that

they are not available for appropriation and are not expendable available financial

resources.

N. Long-Term Obligations

In the government-wide financial statements and proprietary funds in the fund financial

statements, long-term debt and other long-term obligations are reported as liabilities in

the applicable governmental activities, business-type activities or proprietary fund

financial statements. Bond premiums and discounts and gains/losses on refunding are

deferred and amortized over the life of the bonds. Bonds payable are reported net of

the applicable bond premium or discount.

- 28 -



- 29 -


N. Long-Term Obligations (Continued)

In the fund financial statements, governmental funds recognize bond premiums and

discounts, as well as bond issuance costs, during the current period. The face amount

of debt issued is reported as other financing sources. Premiums received on debt

issuances are reported as other financing sources while discounts on debt issuances are

reported as other financing uses. Issuance costs, whether or not withheld from the

actual debt proceeds received, are reported as expenditures/expenses in the period

incurred.

O. Fund Balance/Net Position

In the fund financial statements, governmental funds report nonspendable fund

balance for amounts that are either not in spendable form or legally or contractually

required to be maintained intact. Restrictions of fund balance are reported for

amounts constrained by legal restrictions from outside parties for use for a specific

purpose, or externally imposed by outside entities or from enabling legislation

adopted by the City. Committed fund balance is constrained by formal actions of the

City Council, which is considered the City’s highest level of decision making

authority. Formal actions include resolutions and ordinances approved by the City

Council. Assigned fund balance represents amounts constrained by the City’s intent

to use them for a specific purpose. The authority to assign fund balance has been

delegated to the City’s Chief Financial Officer/City Treasurer or through the

approved budget of the City. Any residual fund balance in the General Fund,

including fund balance targets and any deficit fund balance of any other

governmental fund is reported as unassigned.

The City’s flow of funds assumption prescribes that the funds with the highest level

of constraint are expended first. If restricted or unrestricted funds are available for

spending, the restricted funds are spent first. Additionally, if different levels of

unrestricted funds are available for spending, the City considers committed funds to

be expended first followed by assigned funds and then unassigned funds.

The City has established a policy requiring that the General Fund balance be

maintained at the greater of either (a) 10% of expenditures and other financing

sources as originally budgeted for the fiscal year or (b) $1.0 million plus 25% of the

current fiscal year’s property tax levy. This is reported as part of unassigned fund

balance.

In the government-wide financial statements, restricted net positions are legally

restricted by outside parties for a specific purpose. Net investment in capital assets

represents the book value of capital assets less any long-term debt issued to acquire or

construct the capital assets.

- 29 -



- 30 -


O. Fund Balance/Net Position (Continued)

Restricted net position and restricted fund balance resulting from enabling legislation

adopted by the City consists of $5,970,778 restricted by the original ordinances to be

used for public safety and $5,530,855 restricted by the original ordinances to be used

for health and welfare at December 31, 2012.

P. Deferred Outflows/Inflows of Resources

In addition to assets, the statement of financial position will sometimes report a

separate section for deferred outflows of resources. This separate financial statement

element, deferred outflows of resources, represents a consumption of net position

that applies to a future period(s) and so will not be recognized as an outflow of

resources (expense/expenditure) until then. In addition to liabilities, the statement of

financial position will sometimes report a separate section for deferred inflows of

resources. This separate financial statement element, deferred inflows of resources,

represents an acquisition of net position that applies to a future period(s) and so will

not be recognized as an inflow of resources (revenue) until that time.

Q. Use of Estimates

The preparation of financial statements in conformity with generally accepted

accounting principles requires management to make estimates and assumptions that

affect the reported amounts of assets, deferred outflows, liabilities and deferred

inflows and disclosure of contingent assets and liabilities at the date of the financial

statements and the reported amounts of revenues and expenditures/expenses during

the reporting period. Actual results could differ from those estimates.

2. PROPERTY TAXES

The City’s property tax becomes a lien on real property on January 1 of the year it is levied.

The 2012 levy was adopted December 18, 2012 and attached as an enforceable lien as of

January 1, 2012. The City does not have a statutory tax rate limit. Property taxes are

deposited with the County Treasurers who remit to the City its respective share of the

collections. Taxes levied in one year become due and payable in two installments during

the following year, on or about June 1 and September 1. The 2012 levy is intended to

finance the 2013 fiscal year and, therefore, is reported as unavailable revenue at

December 31, 2012.

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- 31 -

3. CASH AND INVESTMENTS

The City maintains a cash and investment pool that is available for use by all funds except

the pension trust funds. Each fund’s portion of this pool is displayed on the financial

statements as “cash and investments.” In addition, investments are separately held by

several of the City’s funds. The deposits and investments of the pension trust funds are

held separately from those of other funds. The investments are governed by the following

four separate investment policies: one policy for the City and the Library adopted by the

City Council and one policy each for the Police and Firefighters’ Pension Funds and the

Retiree Health Insurance Trust Fund approved by their respective boards.

In accordance with the City’s investment policy, the City’s monetary assets may be placed

in all instruments permitted by the Illinois Public Funds Investment Act. This act permits

deposits and investments in commercial banks, savings and loan institutions, obligations of

the U.S. Treasury and U.S. agencies, obligations of states and their political subdivisions,

credit union shares, repurchase agreements, commercial paper rated within the three

highest classifications by at least two standard rating services and Illinois Funds.

The Police and Firefighters’ Pension Funds can invest in the same securities as the City,

plus the following: mutual funds, equity securities, investment grade corporate debt

securities and variable annuities.

It is the policy of the City to invest its funds in a manner which will provide the highest

investment return with the maximum security while meeting daily cash flow demands and

conforming to all state and local statutes governing the investment of public funds, using

the “prudent person” standard for managing the overall portfolio. The primary objectives

of the policy are safety (preservation of capital and protection of investment principal),

liquidity and yield.

City Deposits with Financial Institutions

Custodial credit risk for deposits with financial institutions is the risk that in the event of a

bank’s failure, the City’s deposits may not be returned to it. The City’s investment policy

requires pledging of collateral with a fair value of 110% of all bank balances in excess of

federal depository insurance with the collateral held by an agent of the City in the City’s

name.

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- 32 -

3. CASH AND INVESTMENTS (Continued)

City Investments

The following table presents the investments and maturities of the City’s debt securities as

of December 31, 2012:

Investment Maturities (in Years)

Investment Type Fair Value Less than 1 1-5 6-10 Greater than 10

U.S. Government Agency Notes $ 24,341,961 $ 19,278,116 $ 5,063,845 $ - $ -

State and Local Obligations 96,423,508 17,436,095 78,987,413 - -

TOTAL $ 120,765,469 $ 36,714,211 $ 84,051,258 $ - $ -

In accordance with its investment policy, the City limits its exposure to interest rate risk by

structuring the portfolio so that securities mature to meet cash requirements for ongoing

operations, thereby avoiding the need to sell securities on the open market prior to maturity

and investing operating funds primarily in shorter-term securities, money market mutual

funds or similar investment pools. Unless matched to a specific cash flow, the City does

not directly invest in securities maturing more than three years from the date of purchase.

The City limits its exposure to credit risk, the risk that the issuer of a debt security will not

pay its par value upon maturity, by primarily investing in U.S. Treasury obligations, U.S.

Government agency notes and state and local obligations rated in the highest two

categories by national rating agencies. The U.S. agency securities are rated Aaa. The state

and local obligations are rated A1 to Aaa by Moody’s. Certain U.S. agency securities and

state and local obligations are not rated.

Custodial credit risk for investments is the risk that, in the event of the failure of the

counterparty to the investment, the City will not be able to recover the value of its

investments that are in possession of an outside party. To limit its exposure, the City’s

investment policy requires all security transactions that are exposed to custodial credit risk

to be processed on a delivery versus payment (DVP) basis with the underlying investments

held by a third party acting as the City’s agent separate from where the investment was

purchased. Illinois Funds and the money market mutual funds are not subject to custodial

credit risk.

Concentration of credit risk - The investment portfolio of the City shall not exceed the

diversification standards below:

Diversification by Instrument Percent of Portfolio

Commercial Paper 10%

Illinois Funds 50%

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- 33 -

3. CASH AND INVESTMENTS (Continued) City Investments (Continued)

No financial institution shall hold more than 20% of the City’s total investment portfolio. Furthermore, the amount of monies deposited and/or invested in a financial institution shall not exceed 75% of the capital stock and surplus of such institution.

The City’s investment policy does not specifically prohibit the use of or the investment in

derivatives. Police and Firefighters’ Pension Funds Deposits with Financial Institutions Custodial credit risk for deposits with financial institutions is the risk that in the event of a

bank’s failure, the Police and Firefighters’ Pension Funds’ deposits may not be returned to them. The Police and Firefighters’ Pension Funds’ investment policies require all bank balances to be covered by federal depository insurance.

Police Pension Fund Investments The following table presents the investments and maturities of the Police Pension Fund’s

debt securities as of December 31, 2012:



U.S. Treasury Obligations $ 29,259,233 $ - $ 12,583,326 $ 15,236,825 $ 1,439,082 U.S. Agency Obligations 5,635,839 - 2,289,201 674,579 2,672,059 Corporate Bonds 20,025,553 - 12,465,828 6,207,459 1,352,266 Foreign Bonds 128,597 - 128,597 - - Negotiable Certificates of Deposit

5,000,000

-

5,000,000

-

-

TOTAL $ 60,049,222 $ - $ 32,466,952 $ 22,118,863 $ 5,463,407

In accordance with its investment policy, the Police Pension Fund limits its exposure to

interest rate risk by structuring the portfolio to provide liquidity for operating funds and maximizing yields for funds not needed for expected current cash flows. The investment policy does not limit the maximum maturity length of investments in the Police Pension Fund.

The Police Pension Fund limits its exposure to credit risk, the risk that the issuer of a debt

security will not pay its par value upon maturity, by primarily investing in obligations guaranteed by the United States Government, securities issued by agencies of the United States Government that are explicitly or implicitly guaranteed by the United States Government and investment grade bonds. The U.S. agency obligations are rated Aaa by Moody’s. The corporate bonds are rated Baa3 to Aaa by Moody’s. However, certain U.S. agency investments, the money market mutual funds and corporate bonds are not rated. The foreign bonds and negotiable certificates of deposit are rated Aa3 by Moody’s.

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- 34 -


Police Pension Fund Investments (Continued)


counterparty to the investment, the Police Pension Fund will not be able to recover the

value of its investments that are in possession of an outside party. To limit its exposure,

the Police Pension Fund’s investment policy requires all security transactions that are

exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis

with the underlying investments held by a third party acting as the Police Pension Fund’s

agent separate from where the investment was purchased in the Police Pension Fund’s

name. The money market mutual funds and mutual funds are not subject to custodial credit

risk.

Concentration of credit risk - The Police Pension Fund’s investment policy specifies the

following preferred asset allocations by investment type:


Equities 40%

Mutual Funds/Variable Annuities 10%

Fixed Income 47%

Cash and Cash Equivalents 3%

Securities in any one company should not exceed 5% of the total Police Pension Fund and

no more than 10% of the total Police Pension Fund should be invested in any one industry.

Individual treasury securities may represent 100% of the total Police Pension Fund, while

the total allocation to treasury bonds and notes may represent up to 100% of the Police

Pension Fund’s aggregate bond position.

Firefighters’ Pension Fund Investments

The following table presents the investments and maturities of the Firefighters’ Pension

Fund’s debt securities as of December 31, 2012:



U.S. Treasury Obligations $ 22,886,220 $ - $ 9,349,726 $ 11,639,848 $ 1,896,646

U.S. Agency Obligations 5,387,591 - 3,333,317 583,953 1,470,321

Corporate Bonds 16,294,880 - 10,301,030 4,997,073 996,777

Foreign Bonds 107,164 - 107,164 - -

Negotiable Certificates of

Deposit

5,000,000

-

5,000,000

-

-

TOTAL $ 49,675,855 $ - $ 28,091,237 $ 17,220,874 $ 4,363,744

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- 35 -


Firefighters’ Pension Fund Investments (Continued)

In accordance with its investment policy, the Firefighters’ Pension Fund limits its exposure

to interest rate risk by structuring the portfolio to provide liquidity for operating funds and

maximizing yields for funds not needed for expected current cash flows. The investment

policy does not limit the maximum maturity length of investments in the Firefighters’

Pension Fund.

The Firefighters’ Pension Fund limits its exposure to credit risk, the risk that the issuer of a

debt security will not pay its par value upon maturity, by primarily investing in obligations

guaranteed by the United States Government, securities issued by agencies of the United

States Government that are explicitly or implicitly guaranteed by the United States

Government and investment grade corporate bonds. The U.S. agency obligation are rated

Aaa by Moody’s. The corporate bonds are rated Baa3 to Aaa by Moody’s. Certain

corporate bond, U.S. agency obligation and the money market mutual fund investments are

not rated. The foreign bonds and negotiable certificates of deposit are rated Aa3 by

Moody’s.


counterparty to the investment, the Firefighters’ Pension Fund will not be able to recover

the value of its investments that are in possession of an outside party. To limit its

exposure, the Firefighters’ Pension Fund’s investment policy requires all security

transactions that are exposed to custodial credit risk to be processed on a delivery versus

payment (DVP) basis with the underlying investments held by a third party acting as the

Firefighters’ Pension Fund’s agent separate from where the investment was purchased in

the Firefighters’ Pension Fund’s name. The money market mutual funds and mutual funds

are not subject to custodial credit risk.

Concentration of credit risk - The Firefighters’ Pension Fund’s investment policy specifies

the following preferred asset allocations by investment type:


Equities 40%

Mutual Funds/Variable Annuities 10%

Fixed Income 47%

Cash and Cash Equivalents 3%

Securities in any one company should not exceed 5% of the total Firefighters’ Pension

Fund and no more than 10% of the total Firefighters’ Pension Fund should be invested in

any one industry. Individual treasury securities may represent 100% of the total

Firefighters’ Pension Fund, while the total allocation to treasury bonds and notes may

represent up to 100% of the Firefighters’ Pension Fund’s aggregate bond position.

- 35 -



- 36 -


Retiree Health Insurance Trust Fund Investments

The deposits and investments of the Retiree Health Insurance Trust Fund are held

separately from those of the City.

Permitted Deposits and Investments - The Retiree Health Insurance Trust Fund Statement

of Investment Policies and Objectives authorizes the Retiree Health Insurance Trust Fund

to invest in stocks traded on major U.S. and non-U.S. exchanges, securities listed on

NASDAQ, mutual funds and commingled funds. Investment grade fixed income

instruments are permitted subject to manager guidelines. Investments in options, futures,

commodities and nonmarketable illiquid investments are prohibited. Specific guidelines

for permitted investments for each manager will be maintained.

Retiree Health Insurance Trust Fund Deposits with Financial Institutions

Custodial credit risk for deposits with financial institutions is the risk that in the event of a

bank’s failure, the Retiree Health Insurance Trust Fund’s deposits may not be returned to

them. The Retiree Health Insurance Trust Fund requires pledging of collateral with a fair

value of 110% for all depository accounts, time deposit accounts, money market mutual

funds or investments in certificates of deposits of financial institutions in excess of FDIC.

The collateral is required to be held by an independent third party depository or the Federal

Reserve Bank in the Retiree Health Insurance Trust Fund’s name.

The following table presents the investments and maturities of the Retiree Health Insurance

Trust Fund’s investment in debt securities as of December 31, 2012:



U.S. Treasury Obligations $ 1,965,652 $ - $ 508,988 $ 824,633 $ 632,031

U.S. Agency Obligations 2,913,287 - 157,518 99,992 2,655,777

Corporate Bonds 4,975,150 - 1,379,861 1,990,553 1,604,736

Municipal Bonds 59,180 - - - 59,180

Negotiable Certificates of

Deposit

49,965

49,965

-

-

-

TOTAL $ 9,963,234 $ 49,965 $ 2,046,367 $ 2,915,178 $ 4,951,724

The Retiree Health Insurance Trust Fund limits its exposure to interest rate risk by

structuring the portfolio to provide liquidity for operating funds and maximizing yields for

funds not needed for expected current cash flows. The investment policy does not limit the

maximum maturity length of investments in the Retiree Health Insurance Trust Fund.

- 36 -



- 37 -


Retiree Health Insurance Trust Fund Deposits with Financial Institutions (Continued)

The Retiree Health Insurance Trust Fund limits its exposure to credit risk, the risk that the

issuer of a debt security will not pay its par value upon maturity, by primarily investing in

obligations guaranteed by the United States Government or securities issued by agencies of

the United States Government or money market mutual funds that are primarily invested in

U.S. Treasury and agency obligations that are explicitly or implicitly guaranteed by the

United States Government. However, the investment policy is silent regarding exposure to

credit risk. The U.S. agency obligation and the money market mutual funds are rated Aaa

by Moody’s. The corporate bonds are rated Baa3 to Aaa by Moody’s. The municipal

bonds are rated Aa3 by Moody’s. Certain corporate bond, negotiable certificates of deposit

and U.S. agency obligation investments are not rated.


counterparty to the investment, the Retiree Health Insurance Trust Fund will not be able to

recover the value of its investments that are in possession of an outside party. To limit its

exposure, the Retiree Health Insurance Trust Fund requires all security transactions that are

exposed to custodial credit risk to be processed on a delivery versus payment (DVP) basis

with the underlying investments held by a third party acting as the Retiree Health Insurance

Trust Fund’s agent separate from where the investment was purchased in the Retiree

Health Insurance Trust Fund’s name. The money market mutual funds are not subject to

custodial credit risk.

4. CAPITAL ASSETS

Capital asset activity for the year ended December 31, 2012 was as follows:

Beginning

Balance

Increases

Decreases

Ending

Balance

GOVERNMENTAL ACTIVITIES

Capital Assets not Being Depreciated

Land $ 39,187,462 $ 409,349 $ 326,800 $ 39,270,011

Land Right of Way 99,582,618 3,597,902 - 103,180,520

Works of Art 977,267 - - 977,267

Construction in Progress 34,707,818 17,268,405 16,698,817 35,277,406

Total Capital Assets not Being Depreciated 174,455,165 21,275,656 17,025,617 178,705,204

Capital Assets Being Depreciated

Buildings and Land Improvements 180,587,832 68,000 12,241,745 168,414,087

Machinery and Equipment 9,629,329 12,291,402 246,403 21,674,328

Vehicles 11,495,557 1,071,282 155,811 12,411,028

Infrastructure 355,336,694 9,691,044 78,719 364,949,019

Total Capital Assets Being Depreciated 557,049,412 23,121,728 12,722,678 567,448,462

- 37 -



- 38 -

4. CAPITAL ASSETS (Continued)

Beginning

Balance

Increases

Decreases

Ending

Balance

GOVERNMENTAL ACTIVITIES (Continued)

Less Accumulated Depreciation for

Buildings and Land Improvements $ 39,460,002 $ 4,153,562 $ 4,669,632 $ 38,943,932

Machinery and Equipment 6,774,005 1,021,970 246,403 7,549,572

Vehicles 9,573,549 509,969 155,811 9,927,707

Infrastructure 112,157,594 6,796,746 63,847 118,890,493

Total Accumulated Depreciation 167,965,150 12,482,247 5,135,693 175,311,704

Total Capital Assets Being Depreciated, Net 389,084,262 10,639,481 7,586,985 392,136,758


CAPITAL ASSETS, NET $ 563,539,427 $ 31,915,137 $ 24,612,602 $ 570,841,962

Beginning

Balance

Increases

Decreases

Ending

Balance

BUSINESS-TYPE ACTIVITIES


Land $ 12,353,213 $ 35,922 $ - $ 12,389,135

Construction in Progress 2,619,277 1,840,905 1,074,494 3,385,688

Total Capital Assets not Being Depreciated 14,972,490 1,876,827 1,074,494 15,774,823


Land Improvements 8,441,215 342,386 - 8,783,601

Building 89,920,567 514,389 85,000 90,349,956

Infrastructure 158,901,291 3,911,418 - 162,812,709

Machinery and Equipment 4,520,851 119,736 - 4,640,587

Vehicles 2,148,743 242,952 81,301 2,310,394

Total Capital Assets Being Depreciated 263,932,667 5,130,881 166,301 268,897,247


Land Improvements 4,552,635 346,756 - 4,899,391

Building 27,453,391 1,784,716 85,000 29,153,107

Infrastructure 45,562,183 2,474,723 - 48,036,906

Machinery and Equipment 3,242,684 210,486 - 3,453,170

Vehicles 1,808,219 89,267 81,301 1,816,185

Total Accumulated Depreciation 82,619,112 4,905,948 166,301 87,358,759

Total Capital Assets Being Depreciated, Net 181,313,555 224,933 - 181,538,488


CAPITAL ASSETS, NET $ 196,286,045 $ 2,101,760 $ 1,074,494 $ 197,313,311

- 38 -



- 39 -

4. CAPITAL ASSETS (Continued)

Depreciation expense was charged to functions of the primary government as follows:


General Government $ 2,143,650

Public Safety 2,911,459

Streets and Transportation 6,667,881

Culture and Recreation 470,387

Economic Development 288,870

TOTAL DEPRECIATION EXPENSE - GOVERNMENTAL ACTIVITIES $ 12,482,247

5. LONG-TERM DEBT

The following is a summary of changes in bonds, contracts payable and other long-term

liabilities during 2012 (in thousands of dollars):

January 1

Additions

Reductions

December 31

Current

Portion


General Obligation Bonds $ 155,250 $ 13,165 $ 21,375 $ 147,040 $ 10,180

Tax Increment Revenue Bonds/Notes 18,960 - 1,770 17,190 2,605

Debt Certificates 6,800 - 4,080 2,720 520

Notes Payable 8,140 - 2,122 6,018 4,662

Illinois EPA Loan-Heathercrest

Sanitary Sewer Rehabilitation

1,502

-

142

1,360

145

Compensated Absences* 13,382 1,096 669 13,809 690

Insurance Claims Payable 7,816 1,195 749 8,262 735

Termination Benefits* 256 - 195 61 61

Net Pension Obligation* 2,147 1,214 - 3,361 -

Net Other Postemployment Benefit

Obligation*

68,892

7,449

-

76,341

-

Unamortized Bond Premium 1,655 467 248 1,874 -

TOTAL GOVERNMENTAL

ACTIVITIES $ 284,800 $ 24,586 $ 31,350 $ 278,036 $ 19,598

* These liabilities are primarily retired by the General Fund (for compensated absences

through contributions to the Internal Service Fund).

- 39 -



- 40 -

5. LONG-TERM DEBT (Continued)

January 1

Additions

Reductions

December 31

Current

Portion


Revenue Bonds

Water and Sewer Revenue Bonds $ 30,750 $ - $ 660 $ 30,090 $ 695

Golf Course Revenue Bonds 3,245 2,680 3,245 2,680 355

Total Revenue Bonds 33,995 2,680 3,905 32,770 1,050

2000 Illinois EPA Loan 6,303 - 496 5,807 510

2009A Illinois EPA Loan 668 - 35 633 35

2009B Illinois EPA Loan 2,912 - 153 2,759 153

2010 Illinois EPA Loan 49 - 3 46 3

Termination Benefits 55 - 17 38 38

Compensated Absences 1,717 135 86 1,766 88

Net Other Postemployment Benefit

Obligation

563

66

-

629

-

Unamortized Bond Premium - 34 2 32 -

TOTAL BUSINESS-TYPE

ACTIVITIES

$ 46,262

$ 2,881

$ 1,700

$ 44,480

$ 1,877

Bonds payable at December 31, 2012 are comprised of the following, excluding the

refunded bonds that are defeased in-substance.

General Obligation Bonds

Current

Total Portion

$31,070,000 2006 Corporate Purpose serial bonds, due in annual

installments of $175,000 to $1,585,000 from December 30, 2007

to December 30, 2036, interest from 4.25% to 4.75% $ 26,925 $ 900

$22,075,000 2007 Corporate Purpose refunding serial bonds, due in

annual installments of $140,000 to $3,285,000 from December 30,

2008 to December 30, 2016, interest from 4.0% to 5.0% 8,190 2,680

$85,500,000 2008 Corporate Purpose serial bonds, due in annual

installments of $1,650,000 to $4,785,000 from December 30, 2009

to December 30, 2038, interest from 3.5% to 5.0%

74,860

2,860

$15,460,000 2009A Taxable Corporate Purpose serial bonds, due in


2010 to December 30, 2024, interest from 1.25% to 5.00%. Pursuant

to the American Recovery and Reinvestment Act, the City is eligible

to receive a rebate from the U.S. Treasury Department of 25% of the

interest paid each year. The net interest rate for the Series 2009A

Build America Bonds, after rebate, is 0.94% to 3.75%.

12,915

920

- 40 -



- 41 -


General Obligation Bonds (Continued)

Current

Total Portion

$5,590,000 2009B Corporate Purpose refunding serial bonds, due in

annual installments of $270,000 to $445,000 from December 30,

2010 to December 30, 2024, interest from 2.0% to 3.7%

$ 4,665

$ 335

$6,320,000 2011 Corporate Purpose refunding serial bonds, due in



6,320

945

$6,905,000 2012B Corporate Purpose refunding serial bonds, due in

annual installments $480,000 to $655,000 from December 30, 2013

to December 30, 2024, interest from 2.0% to 2.5%

6,905

480

$3,165,000 2012C Corporate Purpose refunding serial bonds, due in


2013 to December 30, 2017, interest at 2.0%

3,165

600

$3,095,000 2012D Corporate Purpose refunding serial bonds, due in



3,095

460

TOTAL $ 147,040 $ 10,180

Tax Increment Revenue Bonds and Notes

$7,140,000 2004B tax increment revenue bonds, due in

annual installments of $170,000 to $1,775,000, through

December 30, 2013, interest from 4.90% to 5.85% $ 1,775 $ 1,775

$6,660,000 2008A tax increment revenue bonds, due in annual

installments of $200,000 to $610,000, through December 30, 2027,

interest at 6.75%

6,015

245

$7,265,000 2008B tax increment revenue bonds, due in annual


interest at 6.50%

6,195

405

$3,700,000 2009 tax increment revenue notes, due in annual


interest at 7.00%

3,280

180

TOTAL $ 17,265 $ 2,605

- 41 -



- 42 -


Revenue and Alternate Revenue Source Bonds

Water and Sewer

Current

Total Portion

$33,485,000 2006 Waterworks and Sewerage serial revenue bonds,

due in annual installments of $385,000 to $2,090,000, through

December 1, 2036, interest from 4.00% to 4.75% $ 30,090 $ 695

TOTAL $ 30,090 $ 695

Golf

$2,680,000 2012 Golf Course Revenue Refunding Bonds,

due in annual installments of $355,000 to $410,000, through

January 1, 2020, interest at 2.5% $ 2,680 $ 355

TOTAL $ 2,680 $ 355

Debt Certificates

$4,760,000 Series 2006 Special Service Area No. 34 refunding debt

certificates, due in annual installments of $35,000 to $580,000,

through December 30, 2019, interest at 4.0% $ 2,720 $ 520

TOTAL $ 2,720 $ 520

Notes Payable

$290,000 Note Payable due in ten annual installments of

$18,000 to $42,000, through August 2013, interest at 4.2% $ 42 $ 42

$150,000 Note Payable due in 16 annual installments of

$5,000 to $14,000, through August 2021, interest at 5.2% 86 8


$2,500 to $8,041, through August 2021, interest at 5.2% 58 5


$39,000 to $54,000, through August 2021, interest variable

446

47



192

20

- 42 -



- 43 -


Notes Payable (Continued)

Current

Total Portion



$ 110

$ 12

$4,360,000 Series 2005 Promissory Note due in annual installments

of $183,146 to $281,457, through December 2014, interest at 5.07% 1,084 528

$2,500,000 Note Payable due on November 5, 2013, interest due in

semiannual installments at 7.5%

2,500

2,500

$4,500,000 Note Payable due in three annual installments of

$1,500,000, through June 2013, interest at 0%

1,500

1,500

TOTAL $ 6,018 $ 4,662

Illinois EPA Loans

$2,546,144 Illinois EPA low interest loan related to the Heathercrest

Sanitary Sewer Rehabilitation, due in semiannual installments of

$89,444, through June 2021, interest at 2.535% $ 1,360 $ 145

$10,000,000 Illinois EPA low interest loan related to the water plant

expansion project, due in semiannual installments of $337,665,

through September 2022, interest at 2.905% 5,807 510

$685,871 Illinois EPA loan related to certain watermain replacements,

due in semiannual installments to be determined, through January

2030, interest at 0%

633

35

$2,988,143 Illinois EPA loan related to the separation of certain

combined sewer lines, due in semiannual installments to be

determined, through June 2030, interest at 0%

2,759

153

$69,513 Illinois EPA loan related to a bio-infiltration system, due in

semiannual installments of $1,335, through June 2030, interest at 0%

46

3

TOTAL $ 10,605 $ 846

- 43 -



- 44 -

5. LONG-TERM DEBT (Continued) Termination Benefits The City offered health care termination benefits to certain personnel during the years

ended December 31, 2009, 2010 and 2011. Under the terms of the agreement, the City is required to pay 100% of an employee’s and their dependent’s health insurance premiums for 4 to 12 months, based on an employee’s years of service. As of December 31, 2012, six retirees were participating in the early retirement incentive with an estimated liability of $98,728. This liability was calculated assuming a health care cost trend rate of 7%. All benefits are expected to be paid in 2013.

Net Pension Obligation In fiscal year 1997, the City implemented GASB Statement No. 27, Employer’s Accounting

for Pension Costs. This pronouncement required the City to calculate and record a net pension obligation (NPO) at December 31, 1996. The NPO is, in general, the cumulative difference between the actuarial required contributions and the actual contributions since 1986.

Net Other Postemployment Benefit Obligation In fiscal year 2004, the City implemented GASB Statement No. 45, Accounting and

Financial Reporting by Employers for Postemployment Benefits Other than Pensions. This pronouncement required the City to calculate and record a net other postemployment benefit obligation (NOPEBO) at December 31, 2004. The NOPEBO is, in general, the cumulative difference between the actuarial required contribution and the actual contributions since January 1, 2004.

Debt Service to Maturity The annual requirements to amortize all debt outstanding (except compensated absences,

insurance claims, the NPO and the NOPEBO) as of December 31, 2012, are as follows (in thousands of dollars):


TIF Bonds/Notes Installment Contracts/

Debt Certificates December 31, Principal Interest Principal Interest Principal Interest

2013 $ 10,180 $ 6,422 $ 2,605 $ 1,142 $ 520 $ 109 2014 9,200 5,992 890 983 560 88 2015 9,370 5,658 960 923 555 66 2016 7,055 5,305 1,015 859 570 43 2017 6,860 5,060 1,090 791 305 21 2018-2022 28,965 21,852 6,755 2,750 210 13 2023-2027 24,360 15,835 3,950 660 - - 2028-2032 20,935 10,673 - - - - 2033-2037 25,330 4,966 - - - - 2038-2042 4,785 240 - - - - TOTAL $ 147,040 $ 82,003 $ 17,265 $ 8,108 $ 2,720 $ 340

- 44 -



- 45 -


Debt Service to Maturity (Continued)

Illinois EPA Loans

Notes Payable

Revenue and Alternate

Revenue Source Bonds

December 31, Principal Interest Principal Interest Principal Interest

2013 $ 846 $ 199 $ 4,662 $ 250 $ 1,050 $ 1,418

2014 865 180 648 32 1,090 1,379

2015 885 161 92 9 1,135 1,341

2016 904 141 98 8 1,175 1,301

2017 925 121 99 7 1,215 1,260

2018-2022 4,653 282 419 14 5,595 5,629

2023-2027 955 - - - 6,030 4,429

2028-2032 572 - - - 7,715 2,933

2033-2036 - - - - 7,765 946

TOTAL $ 10,605 $ 1,084 $ 6,018 $ 320 $ 32,770 $ 20,636

The bonds of several issues are subject to redemption and payment prior to their maturity,

at the option of the City.

Current Refunding

On October 2, 2012, the City issued $6,905,000 Corporate Purpose Refunding Serial

Bonds, Series 2012B to refund, through a current refunding, $6,915,000 of the Corporate

Purpose Serial Bonds, Series 2004A. As a result of the refunding, the City achieved cash

flow savings of $995,994 and an economic gain of $1,028,755.


Bonds, Series 2012C to refund, through a current refunding, $3,245,000 of the Corporate

Purpose Refunding Serial Bonds, Series 2004B. As a result of the refunding, the City

achieved cash flow savings of $249,558 and an economic gain of $304,599.


Bonds, Series 2012D to refund, through a current refunding, $3,150,000 of the Series 2002

Special Service Area No. 34 Debt Certificates. As a result of the refunding, the City


On December 20, 2012, the City issued $2,680,000 Golf Course Revenue Refunding Serial

Bonds, Series 2012 to refund, through a current refunding, $2,705,000 of the Series 2000

Golf Course Serial Alternate Revenue Source Bonds. As a result of the refunding, the City


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6. REVENUE BONDS

The revenue bond ordinances require that all revenues derived from the operation of the

Water and Sewer Fund be segregated in separate accounts, in the priority indicated by the

order of the following:

Account

Amount

Nature of

Authorized Expenditures

Operation and Sufficient amount to Expenses of operating,

Maintenance pay reasonable expenses maintaining and repairing

for one month’s operations the system

Bond and Amount sufficient to Paying principal and

Interest pay the current bond interest on bonds

and interest maturities

Bond Reserve $30,000 per month until Paying principal and

account aggregates an interest on bonds when

amount equal to bond and there are insufficient

interest requirements for funds in the bond and

any succeeding fiscal year interest account

Depreciation, $8,000 per month until Cost of extraordinary

Improvement the account aggregates maintenance, necessary

and Extension a minimum of $500,000 replacement and improvement

or extension of the system

Surplus Revenue The amount remaining Making up deficiencies in the

after payment into the aforementioned accounts, paying

above four accounts of junior lien bonds and for any

other lawful corporate purpose

The City has complied with all significant limitations, restrictions and bond covenants

during the year ended December 31, 2012. The restricted assets and restricted net position

for purposes other than bond proceeds and the expenses of operating, maintaining and

repairing the system, is as follows:

RESTRICTED BOND ORDINANCE ACCOUNTS

Bond and Interest Account $ 964

Bond Reserve Account 2,234,411

Depreciation, Improvement and Extension Account 527,087

TOTAL $ 2,762,462

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7. DEFERRED COMPENSATION PLAN

The City offers its employees a deferred compensation plan created in accordance with

Internal Revenue Code Section 457. The plan, available to all employees, permits them to

defer a portion of their salary until future years. The deferred compensation is not

available to employees until termination, retirement, death or unforeseeable emergency. At

December 31, 2012, the plan assets have been placed in trust for the benefit of employees.

Accordingly, the plan assets are not reported in the City’s financial statements.

8. INDUSTRIAL AND MORTGAGE REVENUE BONDS

On March 23, 1976, the City passed an ordinance enabling the City to provide financing

for economic development projects, pollution control projects and hospital facilities by the

issuance of industrial or mortgage revenue bonds. The bonds are secured solely by the

property financed and are payable solely from the payments received on the underlying

mortgage loans on the property. The City is not obligated in any manner for the repayment

of the bonds. Accordingly, the bonds outstanding are not reported as a liability in these

financial statements. As of December 31, 2012, there were 33 series of bonds outstanding.

The aggregate principal amount payable for the series which could be determined was

$233,432,356. The aggregate principal amount payable for the other series of bonds could

not be determined; however, the original issue amounts of the bonds totaled $549,555,000.

9. DEFINED BENEFIT PENSION PLANS

The City contributes to three defined benefit pension plans, the Illinois Municipal

Retirement Fund (IMRF), an agent multiple-employer public employee retirement system;

the Police Pension Plan, which is a single-employer pension plan; and the Firefighters’

Pension Plan, which is also a single-employer pension plan. The benefits, benefit levels,

employee contributions and employer contributions for all three plans are governed by

Illinois Compiled Statutes (ILCS) and can only be amended by the Illinois General

Assembly. The Police and Firefighters’ Pension Plans both issue separate reports on the

pension plans that include required supplementary information and trend information.

These statements can be obtained from the Treasurer of the pension plans at 44 E. Downer

Place, Aurora, Illinois 60507-2067. IMRF also issues a publicly available report that

includes financial statements and supplementary information for the plan as a whole, but

not for individual employers. That report can be obtained from IMRF, 2211 York Road,

Suite 500, Oak Brook, Illinois 60523.

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- 48 -

9. DEFINED BENEFIT PENSION PLANS (Continued)

A. Plan Descriptions

Illinois Municipal Retirement Fund

All employees (other than those covered by the Police or Firefighters’ Pension Plans)

hired in positions that meet or exceed the prescribed annual hourly standard must be

enrolled in IMRF as participating members. IMRF provides two tiers of pension

benefits. Employees hired prior to January 1, 2011 are eligible for Tier 1 benefits.

For Tier 1 employees, pension benefits vest after eight years of service. Participating

members who retire at age 55 (reduced benefits) or after age 60 (full benefits) with

eight years of credited service are entitled to an annual retirement benefit, payable

monthly for life, in an amount equal to 1 2/3% of their final rate of earnings, for each

year of credited service up to 15 years, and 2% for each year thereafter.

Employees hired on or after January 1, 2011 are eligible for Tier 2 benefits. For Tier

2 employees, pension benefits vest after ten years of service. Participating members

who retire at age 62 (reduced benefits) or after age 67 (full benefits) with ten years of

credited service are entitled to an annual retirement benefit, payable monthly for life,

in an amount equal to 1 2/3% of their final rate of earnings, for each year of credited

service up to 15 years, and 2% for each year thereafter.

IMRF also provides death and disability benefits. These benefit provisions and all

other requirements are established by state statute. Participating members are

required to contribute 4.5% of their annual salary to IMRF. The City is required to

contribute the remaining amounts necessary to fund IMRF as specified by statute.

The employer contribution and required employer contribution for 2012 was 13.60%

of covered payroll.

Police Pension Plan

Police sworn personnel are covered by the Police Pension Plan. Although this is a

single-employer pension plan, the defined benefits and employee and employer

contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/3-1) and

may be amended only by the Illinois legislature. The City accounts for the plan as a

pension trust fund.

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- 49 -


A. Plan Descriptions (Continued)

Police Pension Plan (Continued)

The Police Pension Plan provides retirement benefits through two tiers of benefits as

well as death and disability benefits. Tier 1 employees (those hired prior to

January 1, 2011) attaining the age of 50 or older with 20 or more years of creditable

service are entitled to receive an annual retirement benefit equal to one-half of the

salary attached to the rank held on the last day of service, or for one year prior to the

last day, whichever is greater. The annual benefit shall be increased by 2.50% of

such salary for each additional year of service over 20 years up to 30 years to a

maximum of 75.00% of such salary. Employees with at least eight years but less

than 20 years of credited service may retire at or after age 60 and receive a reduced

benefit. The monthly benefit of a police officer who retired with 20 or more years of

service after January 1, 1977 shall be increased annually, following the first

anniversary date of retirement and be paid upon reaching the age of at least 55 years,

by 3.00% of the original pension and 3.00% compounded annually thereafter.

Tier 2 employees (those hired on or after January 1, 2011) attaining the age of 55 or

older with ten or more years of creditable service are entitled to receive an annual

retirement benefit equal to the average monthly salary obtained by dividing the total

salary of the police officer during the 96 consecutive months of service within the

last 120 months of service in which the total salary was the highest by the number of

months of service in that period. Police officers’ salary for pension purposes is

capped at $106,800, plus the lesser of ½ of the annual change in the Consumer Price

Index or 3.00% compounded. The annual benefit shall be increased by 2.50% of

such salary for each additional year of service over 20 years up to 30 years to a

maximum of 75.00% of such salary. Employees with at least ten years may retire at

or after age 50 and receive a reduced benefit (i.e., ½% for each month under 55).

The monthly benefit of a Tier 2 police officer shall be increased annually at age 60

on the January 1st after the police officer retires, or the first anniversary of the

pension starting date, whichever is later. Noncompounding increases occur annually,

each January thereafter. The increase is the lesser of 3.00% or ½ of the change in the

Consumer Price Index for the proceeding calendar year.

Employees are required by ILCS to contribute 9.91% of their base salary to the

Police Pension Plan. If an employee leaves covered employment with less than 20

years of service, accumulated employee contributions may be refunded without

accumulated interest. The City is required to contribute the remaining amounts

necessary to finance the plan and the administrative costs as actuarially determined

by an enrolled actuary. Effective January 1, 2011, the City has until the year 2040 to

fund 90% of the past service cost for the Police Pension Plan. For the year ended

December 31, 2012, the City’s contribution was 39.98% of covered payroll.

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- 50 -



Firefighters’ Pension Plan

Fire sworn personnel are covered by the Firefighters’ Pension Plan. Although this is

a single-employer pension plan, the defined benefits and employee and employer

contribution levels are governed by Illinois Compiled Statutes (40 ILCS 5/4-1) and

may be amended only by the Illinois legislature. The City accounts for the plan as a

pension trust fund.

The Firefighters’ Pension Plan provides retirement benefits through two tiers of

benefits as well as death and disability benefits. Tier 1 employees (those hired prior

to January 1, 2011) attaining the age of 50 or older with 20 or more years of

creditable service are entitled to receive an annual retirement benefit equal to one-

half of the salary attached to the rank held at the date of retirement. The annual

benefit shall be increased by 2.50% of such salary for each additional year of service

over 20 years up to 30 years to a maximum of 75.00% of such salary. Employees

with at least ten years but less than 20 years of credited service may retire at or after

age 60 and receive a reduced benefit. The monthly benefit of a covered employee

who retired with 20 or more years of service after January 1, 1977 shall be increased

annually, following the first anniversary date of retirement and be paid upon reaching

the age of at least 55 years, by 3.00% of the original pension and 3.00% compounded

annually thereafter.

Tier 2 employees (those hired on or after January 1, 2011) attaining the age of 55 or

older with ten or more years of creditable service are entitled to receive an annual

retirement benefit equal to the average monthly salary obtained by dividing the total

salary of the firefighter during the 96 consecutive months of service within the last

120 months of service in which the total salary was the highest by the number of

months of service in that period. Firefighters’ salary for pension purposes is capped

at $106,800, plus the lesser of ½ of the annual change in the Consumer Price Index

or 3.00% compounded. The annual benefit shall be increased by 2.50% of such

salary for each additional year of service over 20 years up to 30 years to a maximum

of 75.00% of such salary. Employees with at least ten years may retire at or after age

50 and receive a reduced benefit (i.e., ½% for each month under 55). The monthly

benefit of a Tier 2 firefighter shall be increased annually at age 60 on the January 1st

after the firefighter retires, or the first anniversary of the pension starting date,

whichever is later. Noncompounding increases occur annually, each January

thereafter. The increase is the lesser of 3.00% or ½ of the change in the Consumer

Price Index for the proceeding calendar year.

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- 51 -



Firefighters’ Pension Plan (Continued)

Covered employees are required to contribute 9.455% of their base salary to the

Firefighters’ Pension Plan. If an employee leaves covered employment with less

than 20 years of service, accumulated employee contributions may be refunded

without accumulated interest. The City is required to finance the plan and the

administrative costs as actuarially determined by an enrolled actuary. Effective

January 1, 2011, the City has until the year 2040 to fund 90% of the past services

costs for the Firefighters’ Pension Plan. For the year ended December 31, 2012, the

City’s contribution was 38.33% of covered payroll.

B. Significant Investments

There are no significant investments (other than U.S. Government guaranteed

obligations) in any one organization that represent 5.0% or more of plan net assets

for either the Police or the Firefighters’ Pension Plans. Information for IMRF is not

available.

C. Annual Pension Costs

Employer contributions have been determined as follows:

Illinois

Municipal

Retirement

Police

Pension

Firefighters’

Pension

Actuarial Valuation Date December 31,

2010

December 31,

2011

December 31,

2011

Actuarial Cost Method Entry-age

Normal

Entry-age

Normal

Entry-age

Normal

Asset Valuation Method 5 Year Smoothed

Market

Market Market

Amortization Method Level Percentage

of Payroll

Level Percentage

of Payroll

Level Percentage

of Payroll

Amortization Period 30 Years, Open 30 Years, Closed 30 Years, Closed

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- 52 -


C. Annual Pension Costs (Continued)

Illinois

Municipal

Retirement

Police

Pension

Firefighters’

Pension

Significant Actuarial Assumptions

a) Rate of Return on 7.5% 7.0% 7.0%

Present and Future Assets Compounded Compounded Compounded

Annually Annually Annually

b) Projected Salary Increase - 4.0% 5.5% 5.5%

Attributable to Inflation Compounded Compounded Compounded

Annually Annually Annually

c) Additional Projected .4% to 10.0% Not Available Not Available

Salary Increases -

Seniority/Merit

Employer annual pension costs (APC), actual contributions and the net pension

obligation (NPO) are as follows. The NPO is the cumulative difference between the

APC and the contributions actually made.

Calendar

Year

Illinois

Municipal

Retirement

Police

Pension

Firefighters’

Pension

Annual Pension Cost 2010 $ 4,163,652 $ 9,926,672 $ 8,271,961

(APC) 2011 4,280,414 10,386,034 8,564,154

2012 4,617,527 9,066,508 7,784,818

Actual Contributions 2010 3,822,990 9,901,400 8,268,900

2011 3,961,882 10,364,821 8,574,474

2012 4,603,427 8,270,619 7,380,005

Percentage of APC Contributed 2010 91.82% 99.75% 99.96%

2011 92.56% 99.80% 100.12%

2012 99.69% 91.22% 94.80%

NPO 2010 $ 340,662 $ 1,284,308 $ 193,078

2011 659,194 1,305,521 182,758

2012 673,294 2,101,410 587,571

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- 53 -


C. Annual Pension Costs (Continued)

The NPO at December 31, 2012 has been calculated as follows:

Illinois

Municipal

Retirement

Police

Pension

Firefighters’

Pension

Annual Required Contribution $ 4,603,427 $ 9,030,372 $ 7,779,759

Interest on Net Pension Obligation 49,440 91,386 12,793

Adjustment to Annual Required Contribution (35,340) (55,250) (7,734)

Annual Pension Cost 4,617,527 9,066,508 7,784,818

Contributions Made 4,603,427 8,270,619 7,380,005

Increase in Net Pension Obligation 14,100 795,889 404,813

Net Pension Obligation, Beginning of Year 659,194 1,305,521 182,758

NET PENSION OBLIGATION, END OF YEAR $ 673,294 $ 2,101,410 $ 587,571

The NPO is reported as a liability in the City’s governmental activities column in the

government-wide financial statements at December 31, 2012.

D. Funded Status

The funded status of the plans as of December 31, 2012, based on actuarial

valuations performed as of the same date, is as follows. The actuarial assumptions

used to determine the funded status of the plans are the same actuarial assumptions

used to determine the employer APC of the plans as disclosed in Note 9-C:

Illinois

Municipal

Retirement

Police

Pension

Firefighters’

Pension

Actuarial Accrued Liability (AAL) $ 115,654,588 $ 297,095,318 $ 223,524,431

Actuarial Value of Plan Assets 75,752,092 144,783,442 117,268,887

Unfunded Actuarial Accrued Liability

(UAAL)

39,902,496

152,261,876

106,255,544

Funded Ratio (Actuarial Value of Plan

Assets/AAL)

65.50%

48.74%

52.46%

Covered Payroll (Active Plan Members) $ 38,825,698 $ 26,708,019 $ 19,252,373

UAAL as a Percentage of Covered Payroll 102.77% 570.10% 551.91%

See the schedules of funding progress in the required supplementary information

immediately following the notes to financial statements for additional information

related to the funded status of the plans.

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- 54 -

10. RISK MANAGEMENT

The City is exposed to various risks of loss, including but not limited to, property and

casualty, general and public officials’ liability, workers’ compensation and employee’s

health. The City uses a combination of purchased third party indemnity insurance and self-

insurance with specific and aggregate stop-loss coverage to limit its exposure to losses.

The coverage by area is as follows:

Property Insurance

The City has purchased third party indemnity coverage for property and casualty losses.

The City is covered up to 90% of the replacement cash value for property, with a self-

insured retention of $50,000 per occurrence, which is the same coverage as the prior year.

Liability Insurance

The City is self-insured for general liability insurance up to $2,000,000. The City has

purchased specific stop-loss coverage for claims from $2,000,000 to $20,000,000, which is

the same coverage as the prior year. The City has hired a third party administrator to

review, process and pay claims as directed by the City’s human resources director/risk

manager.

Workers’ Compensation

The City is self-insured for workers’ compensation. In order to limit its exposure to losses,

the City has purchased specific stop-loss coverage limiting its exposure to $600,000 per

occurrence, which is the same coverage as the prior year, with specific excess coverage

providing insurance above $600,000 per occurrence up to the statutory maximum. The

City has hired a third party administrator to review, process and pay claims, as directed by

the City’s human resources director/risk manager. Claims incurred are charged to the

City’s Property and Casualty Insurance Fund.

A reconciliation of the claims liability for workers’ compensation and general liability is as

follows:

Workers’ Compensation General Liability

2012 2011 2012 2011

CLAIMS PAYABLE, JANUARY 1 $ 3,451,264 $ 2,865,239 $ 3,616,527 $ 3,649,890

Add Claims Incurred and Claims

Adjustment 2,432,288 3,638,968 2,396,186 1,798,584

Less Claims Paid 2,944,633 3,052,943 1,425,034 1,831,947

CLAIMS PAYABLE, DECEMBER 31 $ 2,938,919 $ 3,451,264 $ 4,587,679 $ 3,616,527

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- 55 -

10. RISK MANAGEMENT (Continued)

Health Care and Insurance Benefits

The City is partially self-insured for health care benefits provided to its employees, retirees

and their dependents. Such employees may elect to receive benefits under a Health Care

Maintenance Organization (HMO) program or under the City’s self-insurance program.

The same coverage is offered to individuals who, upon termination, qualify for retirement.

Such individuals reimburse the City a stipulated monthly premium charge and receive

coverage. Under the HMO option, all covered health charges are the responsibility of the

HMO, the City pays the premiums for this coverage in excess of the employee/retiree

contribution.

For the self-insurance program the City has purchased stop-loss coverage to limit its

exposure to losses from self-insured health insurance. The specific stop-loss coverage, on

a policy year of January 1 - December 31, 2012, is $325,000 per individual, which is the

same coverage as the prior year, with an aggregate specific attachment of $40,000.

Therefore, claims in excess of $325,000 per individual are aggregated until the amount

reaches $40,000, with excess amounts above this reimbursed by the aggregate specific

carrier, up to $2,000,000 per policy year.

Health Insurance

2012 2011

CLAIMS PAYABLE, JANUARY 1 $ 1,177,649 $ 1,272,283

Add Claims Incurred 18,522,141 17,926,162

Less Claims Paid 18,414,579 18,020,796

CLAIMS PAYABLE, DECEMBER 31 $ 1,285,211 $ 1,177,649

Life insurance benefits for each city employee are provided through insurance.

The insurance programs are funded through monthly charges to the various city funds and

the terminated individuals and are accounted for in the Property and Casualty Insurance

Fund and the Employee Health Insurance Fund. The excess of such charges over health

care claims paid, premiums for insurance coverage in excess of self-insured amounts,

premiums for group life insurance and charges for administration of the program, if any, is

reported as an operating transfer.

Settled claims did not exceed the insurance coverage in the current year or the prior two

fiscal years.

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- 56 -

11. CONTINGENT LIABILITIES

A. Litigation

The City is a defendant in various lawsuits. Although the outcome of these lawsuits

is not presently determinable, in the opinion of the City’s attorney the resolution of

these matters will not have a material adverse effect on the financial condition of the

City. As disclosed in Note 10, a liability of $4,587,679 has been accrued for

probable losses on liability claims.

B. Grants

Amounts received and receivable from grantor agencies are subject to audit and

adjustment by grantor agencies, principally the federal government. Any disallowed

claims, including amounts already collected, may constitute a liability of the

applicable funds. The amount, if any, of expenditures which may be disallowed by

the grantor cannot be determined at this time although the City expects such

amounts, if any, to be immaterial.

12. DEVELOPMENT ASSISTANCE

The City has entered into various agreements with private organizations to encourage

economic development in the City. Some of these agreements provide for rebating a

portion of property taxes and/or sales taxes to the private organizations if certain

benchmarks of development are achieved. During the fiscal year ended December 31,

2012, approximately $3,931,463 in property taxes and $982,210 in sales taxes were rebated

under these agreements. Approximately $19,322,156 in property taxes and $2,358,907 in

sales taxes may be rebated if certain criteria are met in future years.

13. INTERFUND ACCOUNTS

Due from/to other funds at December 31, 2012 consist of the following:

Due From Due To

General $ - $ 6,525,421

Debt Service - -

Nonmajor Governmental 11,917,783 5,417,783

Fiduciary 25,421 -

TOTAL $ 11,943,204 $ 11,943,204

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- 57 -

13. INTERFUND ACCOUNTS (Continued)

The purpose of significant due from/to other funds is as follows:

$6,525,421 due to other funds from the General Fund. This balance relates

primarily to an unliquidated reallocation of home-rule sales taxes to Capital

Improvements Fund A from the General Fund. The city expects that the obligation

will be liquidated within one year.

$11,917,783 due from other funds to the nonmajor governmental funds. This

balance relates primarily to a) an unliquidated reallocation of $6.0 million of home-

rule sales taxes from the General Fund to Capital Improvements Fund A (a

nonmajor capital projects fund) and b) an unliquidated transfer of $4.9 million from

the TIF District #2 Fund to the TIF District #7 Fund (a nonmajor special revenue

fund). The city expects that the obligation will be liquidated within one year.

$5,517,783 due to nonmajor governmental funds from other funds. This balance

relates primarily to an unliquidated transfer to the TIF District #7 Fund (a nonmajor

special revenue fund) from the TIF District #2 Fund. The city expects that the

obligation will be liquidated within one year.

Interfund transfers during the year ended December 31, 2012 consisted of the following:

Transfer In Transfer Out

General $ - $ 300,000

Debt Service 10,939,800 -

Nonmajor Governmental 17,826,600 27,741,400

Water and Sewer - 1,000,000

Nonmajor Enterprise 275,000 -

TOTAL $ 29,041,400 $ 29,041,400

The purposes of significant interfund transfers are as follows:

$10,939,800 transferred to the Debt Service Fund from other funds. This amount

relates primarily to routine annual transfers of $4.1 million, $1.7 million, $3.6

million, and $1.0 million to the Debt Service Fund from the Gaming Tax Fund,

Stormwater Management Fee Fund, Safety, Health, and Public Enhancement Fee

Fund, and the Water and Sewer Fund, respectively, for the payment of general

obligation bond debt service. The transfers will not be repaid.

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- 58 -

13. INTERFUND ACCOUNTS (Continued)

Significant Interfund Transfers (Continued)

$17,826,600 transferred to other funds from nonmajor governmental funds. This

amount relates primarily to a) a transfer of $11.6 million to the TIF District #7 Fund

(a nonmajor special revenue fund) from the TIF District #2 Fund and a transfer of

$4.0 million to the TIF District #8 Fund (a nonmajor special revenue fund) from the

TIF District #2 Fund. Both of these transfers provided resources for future

redevelopment projects. The transfers will not be repaid.

$27,741,400 transferred from the nonmajor governmental funds to other funds. This

amount relates primarily to a) a routine transfer of $4.1 million from the Gaming Tax

Fund (a nonmajor special revenue fund) to the Debt Service Fund for the payment of

general obligation bond debt service, b) a routine transfer of $1.7 million from the

Stormwater Management Fee Fund (a nonmajor special revenue fund) to the Debt

Service Fund for the payment of general obligation bond debt service, c) a routine

transfer of $3.6 million from the Safety, Health, and Public Enhancement Fee Fund

(a nonmajor special revenue fund) to the Debt Service Fund for the payment of

general obligation bond debt service, d) a transfer of transfer of $11.6. million from

the TIF District #2 Fund (a nonmajor special revenue fund) to the TIF District #7

Fund for future redevelopment projects, and e) a transfer of $4.0 million from the

TIF District #2 Fund (a nonmajor special revenue fund) to the TIF District #8 Fund

for future redevelopment projects.

$1,000,000 transferred from the Water and Sewer Fund to other funds. This amount

relates to a routine annual transfer to the Debt Service Fund for the payment of debt

service on certain general obligation bonds. The transfer will not be repaid.

The TIF #2 Farnsworth Fund, a Nonmajor governmental fund, reports a deficit fund

balance of $3,214,051 at December 31, 2012.

14. INTERGOVERNMENTAL AGREEMENT

A. Fox Valley Park District

On September 30, 1989, the Fox Valley Park District (the Park District) entered into

an agreement with the City to jointly construct three family aquatic centers for the

joint use by the citizens of both governmental agencies. The agreement specifies that

the City will finance all construction costs of the centers. The Park District will

repay the City 50% of the construction costs on December 31 of each full year of

operations at a minimum of $200,000 per center per year exclusive of any accrued

interest on indebtedness incurred by the City and exclusive of any interest on

deferred payments from the Park District to the City.

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- 59 -

14. INTERGOVERNMENTAL AGREEMENT (Continued)

A. Fox Valley Park District (Continued)

All real estate and all other personal property at said centers shall be titled in the

names of the City and the Park District, each to own an individual 50% interest. The

Park District agreed to be fully responsible for all daily operations including

management and administration of the family aquatic centers. In addition, the

principal amount of the receivable to be paid by the Park District is recorded in the

Debt Service Fund offset by deferred revenue in the fund financial statements, but

recognized as revenue in the government-wide financial statements. The receivable

to be paid by the Park District each year is as follows:

Splash

Country

2013 $ 200,000

2014 200,000

2015 200,000

2016 200,000

2017 200,000

2018 129,750

TOTAL RECEIVABLE $ 1,129,750

B. Fox Metro Water Reclamation District

On April 19, 2006, the Fox Metro Water Reclamation District (the District) entered

into an agreement with the City to construct a new sanitary sewer system and other

improvements in the downtown area. The agreement specifies that the City will

finance all construction costs of the improvements. In return, the District will pay

the City 50% of the debt service payments related to the 2006 Waterworks and

Sewerage serial revenue bonds as well as additional amounts to be determined upon

completion of the improvements.

The District shall own, operate and maintain the sanitary sewer improvements. The

City shall own, operate and maintain the remaining improvements, which include

certain storm sewer, water main and duct improvements. The principal amount of

the receivable to be paid by the District is recorded in the Water and Sewer Fund.

The receivable to be paid by the District each year is as follows:

- 59 -



- 60 -

14. INTERGOVERNMENTAL AGREEMENT (Continued)

B. Fox Metro Water Reclamation District (Continued)

2013 $ 153,563

2014 160,505

2015 167,526

2016 174,627

2017 181,812

2018-2022 1,041,473

2023-2027 1,306,942

2028-2032 1,657,778

2033-2037 1,657,492

TOTAL RECEIVABLE $ 6,501,718

15. OTHER POSTEMPLOYMENT BENEFITS

Plan Description

In addition to providing the pension benefits described, the City provides postemployment

health care and life insurance benefits (OPEB) for retired employees through a single-

employer defined benefit plan. The benefits, benefit levels, employee contributions and

employer contributions are governed by the City and can be amended by the City through

its personnel manual and union contracts. The OPEB plan issues a separate report that

includes required supplementary information and trend information. This report can be

obtained from the Treasurer of the plan at 44 E. Downer Place, Aurora, IL 60507-2067.

The activity of the plan is reported in the City’s Retiree Health Insurance Trust Fund.

Benefits Provided

The City provides postemployment health care and life insurance benefits to its retirees.

To be eligible for benefits, an employee must qualify for retirement under one of the City’s

retirement plans. Elected officials are eligible for benefits if they qualify for retirement

through IMRF.

All health care benefits are provided through the City’s self-insured health plan. The

benefit levels are the same as those afforded to active employees. Benefits include general

inpatient and outpatient medical services; mental, nervous and substance abuse care; vision

care; dental care and prescriptions. Upon a retiree reaching age 65 years of age, Medicare

becomes the primary insurer and the City’s plan becomes secondary. Until a retiree

reaches age 65, $5,000 of life insurance coverage is provided at no cost.

- 60 -



- 61 -

15. OTHER POSTEMPLOYMENT BENEFITS (Continued)

Membership

At December 31, 2012, membership consisted of:

Retirees and Beneficiaries Currently Receiving

Benefits 453

Terminated Employees Entitled

to Benefits but not yet Receiving Them -

Active Employees 925

TOTAL 1,378

Participating Employers 1

Funding Policy

The City negotiates the contribution percentages between the City and employees through

the union contracts and personnel policy. All retirees contribute 20%-29% of the

actuarially determined premium to the plan and the City contributes the remainder to cover

the cost of providing the benefits to the retirees via the self-insured plan. Since the City is

self-insured, this amount fluctuates on an annual basis. For the fiscal year ended

December 31, 2012, retirees contributed $1,654,351 and the City contributed $5,380,735.

Active employees do not contribute to the plan until retirement.

Annual OPEB Costs and Net OPEB Obligation

The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan

and the net OPEB obligation for 2010, 2011 and 2012 were as follows:

Fiscal

Year

Ended

Annual

OPEB

Cost

Employer

Contributions

Percentage of

Annual OPEB Cost

Contributed

Net OPEB

Obligation

(Asset)

December 31, 2010 $ 13,674,943 $ 4,548,786 33.26% $ 58,206,798

December 31, 2011 13,331,086 4,580,046 34.36% 66,957,838

December 31, 2012 12,974,168 5,380,735 41.47% 74,551,271

- 61 -



- 62 -


Annual OPEB Costs and Net OPEB Obligation (Continued)

The net OPEB obligation (NOPEBO) as December 31, 2012 was calculated as follows:

Annual Required Contribution $ 11,182,621

Interest on Net OPEB Obligation 4,687,049

Adjustment to Annual Required Contribution (2,895,502)

Annual OPEB Cost 12,974,168

Contributions Made 5,380,735

Increase in Net OPEB Obligation 7,593,433

Net OPEB Obligation, Beginning of Year 66,957,838

NET OPEB OBLIGATION, END OF YEAR $ 74,551,271

Funded Status and Funding Progress. The funded status of the plan as of December 31,

2012 was as follows:

Actuarial Accrued Liability (AAL) $ 197,518,139

Actuarial Value of Plan Assets 26,735,905

Unfunded Actuarial Accrued Liability (UAAL) 170,782,234

Funded Ratio (Actuarial Value of Plan Assets/AAL) 13.54%

Covered Payroll (Active Plan Members) $ 72,083,003

UAAL as a Percentage of Covered Payroll 236.92%

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts

and assumptions about the probability of occurrence of events far into the future.

Examples include assumptions about future employment, mortality and the healthcare cost

trend. Amounts determined regarding the funded status of the plan and the ARCs of the

employer are subject to continual revision as actual results are compared with past

expectations and new estimates are made about the future. The schedule of funding

progress, presented as required supplementary information following the notes to financial

statements, presents multi-year trend information that shows whether the actuarial value of

plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities

for benefits.

- 62 -



- 63 -


Annual OPEB Costs and Net OPEB Obligation (Continued)

Actuarial Methods and Assumptions. Projections of benefits for financial reporting

purposes are based on the substantive plan (the plan as understood by the employer and

plan members) and include the types of benefits provided at the time of each valuation and

the historical pattern of sharing of benefit costs between the employer and plan members to

that point. The actuarial methods and assumptions used include techniques that are

designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial

value of assets, consistent with the long-term perspective of the calculations.

In the December 31, 2012 actuarial valuation, the entry-age actuarial cost method was

used. The actuarial assumptions included 7.0% investment rate of return (net of

administrative expenses) and an initial annual healthcare cost trend rate of 7.5% reduced by

0.25% each year to arrive at an ultimate healthcare cost trend rate of 5.0%. Both rates

include a 3.0% inflation assumption. The actuarial value of assets was based on fair value

at December 31, 2012. The plan’s unfunded actuarial accrued liability is being amortized

as a level percentage of projected payroll on an open 30-year basis.

16. SPECIAL ITEM

During the year ended December 31, 2012, the City disposed of property at a loss of

$4,973,299.

17. PRIOR PERIOD ADJUSTMENT

Net positions of governmental activities and business-type activities have been restated by

$(1,191,162) and $(370,521), respectively, due to the write off of previous bond issuance

costs which were being amortized over the life of the bonds. With the implementation of

GASB Statement No. 65, the City is required to expense these amounts as the bonds are

issued and to apply this change retroactively.

18. COMPONENT UNIT - AURORA PUBLIC LIBRARY

A. Financial Information

Financial statements for the Aurora Public Library (the Library), including

government-wide and fund financial statements, are available in the Library’s

separately audited financial statements as of December 31, 2012, which can be

obtained from the Library’s administrative offices located at 1 E. Benton Street,

Aurora, Illinois 60505.

- 63 -



- 64 -

18. COMPONENT UNIT - AURORA PUBLIC LIBRARY (Continued)

B. Deposits and Investments

Library Deposits with Financial Institutions

Custodial credit risk for deposits with financial institutions is the risk that in the

event of a bank’s failure, the Library’s deposits may not be returned to it. The City’s

investment policy requires pledging of collateral with a fair value of 110% of all

bank balances in excess of federal depository insurance with collateral held by the

City or its agent, in the City’s name.

Library Investments

The following table presents the investments and maturities of the Library’s debt

securities as of December 31, 2012:

Investment Maturities in Years


U.S. Agency Obligations $ 7,701,150 $ 7,701,150 $ - $ - $ -

State and Local Obligations 14,292,413 4,876,764 9,415,649 - -

TOTAL $ 21,993,563 $ 12,577,914 $ 9,415,649 $ - $ -

In accordance with the City’s investment policy, the Library limits its exposure to

interest rate risk by structuring the portfolio so that securities mature to meet cash

requirements for ongoing operations, thereby avoiding the need to sell securities on

the open market prior to maturity and investing operating funds primarily in shorter-

term securities, money market mutual funds or similar investment pools. Unless

matched to a specific cash flow, the Library does not directly invest in securities

maturing more than three years from the date of purchase.

The Library limits its exposure to credit risk, the risk that the issuer of a debt security

will not pay its par value upon maturity, by primarily investing in U.S. Treasury

obligations, U.S. Government agency notes and state and local obligations rated in

the highest two categories by national rating agencies. The state and local

obligations are rated Aa2 to Aaa by Moody’s, or are not rated. Certain U.S. agency

obligations are not rated.

- 64 -



- 65 -


B. Deposits and Investments (Continued)

Library Investments (Continued)


counterparty to the investment, the Library will not be able to recover the value of its

investments that are in possession of an outside party. To limit its exposure, the

City’s investment policy requires all security transactions that are exposed to

custodial credit risk to be processed on a delivery versus payment (DVP) basis with

the underlying investments held by a third party acting as the City’s agent separate

from where the investment was purchased or by the trust department of the bank

where purchased, in the City’s name. The money market mutual funds are not

subject to custodial credit risk.

Concentration of credit risk - The investment portfolio of the Library shall not

exceed the diversification standards below:


Commercial Paper 10%

Illinois Funds 50%

No financial institution shall hold more than 20% of the Library’s total investment

portfolio. Furthermore, the amount of monies deposited and/or invested in a

financial institution shall not exceed 75% of the capital stock and surplus of such

institution.

The City’s investment policy does not specifically prohibit the use of or the

investment in derivatives.

C. Receivables

Property taxes for the 2012 levy year attach as an enforceable lien on January 1,

2012, on property values assessed as of the same date. Taxes are levied by

December of the same year by passage of a tax levy ordinance. Tax bills are

prepared by the counties and issued on or about May 1, 2013 and August 1, 2013,

and are payable in two installments, on or about June 1, 2013 and September 1, 2013.

The counties collect such taxes and remits them periodically.

The Library recognizes property tax revenues when they become both measurable

and available in the fiscal year that the tax levy is intended to finance. Therefore, the

entire 2012 tax levy has been recorded as deferred revenue on the financial

statements.

- 65 -



- 66 -


D. Capital Assets

The following is a summary of the capital asset activity for the year ended

December 31, 2012:

Beginning

Balance

Increases

Decreases

Ending

Balance



Land and Land Improvements $ 3,381,186 $ - $ - $ 3,381,186

Construction in Progress 1,097,076 799,439 149,084 1,747,431

Total Capital Assets not Being Depreciated 4,478,262 799,439 149,084 5,128,617


Buildings 10,375,362 - - 10,375,362

Machinery and Equipment 233,898 149,084 99,413 283,569

Vehicles 210,059 - - 210,059

Total Capital Assets Being Depreciated 10,819,319 149,084 99,413 10,868,990


Buildings 3,001,230 205,168 - 3,206,398

Machinery and Equipment 199,103 12,425 69,589 141,939

Vehicles 210,057 - - 210,057

Total Accumulated Depreciation 3,410,390 217,593 69,589 3,558,394

Total Capital Assets Being Depreciated, Net 7,408,929 (68,509) 29,824 7,310,596


CAPITAL ASSETS, NET $ 11,887,191 $ 730,930 $ 178,908 $ 12,439,213

Depreciation expense was charged to functions/programs of the governmental activities

as follows:


Culture and Recreation $ 217,593

TOTAL DEPRECIATION EXPENSE - GOVERNMENTAL ACTIVITIES $ 217,593

- 66 -



- 67 -


E. Long-Term Debt

1. Bonds payable at December 31, 2012 are comprised of the following:


$2,740,000 2011 Corporate Purpose Refunding serial bonds, due in


2012 to December 30, 2022, interest from 2.00% to 3.00%.

While a general obligation of the City, the principal and interest is

to be repaid with the Library’s tax levy. $ 2,635,000

$19,200,000 2012A Corporate Purpose serial bonds, due in annual

installments of $145,000 to $1,095,000 from December 30, 2013 to

December 30, 2041, interest from 3.00% to 4.00%. While a general

obligation of the City, the principal and interest is to be repaid with

the Library’s tax levy.

19,200,000

TOTAL $ 21,835,000

2. Debt Service to Maturity

Annual debt service requirements to maturity are as follows:

Corporate Purpose

Serial Bonds

Year Principal Interest

2013 $ 425,000 $ 876,208

2014 555,000 708,844

2015 560,000 693,619

2016 570,000 676,819

2017 580,000 659,719

2018-2022 3,105,000 3,029,495

2023-2027 3,460,000 2,543,191

2028-2032 3,915,000 1,991,282

2033-2037 4,505,000 1,310,875

2038-2042 4,160,000 423,000

TOTAL $ 21,835,000 $ 12,913,052

- 67 -



- 68 -


E. Long-Term Debt (Continued)

3. Changes in Long-Term Debt

Changes in long-term debt during the year ended December 31, 2012 is as

follows:

Balance

January 1

Additions

Deletions

Balance

December 31

Current

Portion

General Obligation Bonds $ 2,900,000 $ 19,200,000 $ 265,000 $ 21,835,000 $ 425,000

Compensated Absences 522,327 546,201 522,327 546,201 546,201

Net Pension Obligation 94,400 2,018 - 96,418 -

Net Other Postemployment

Benefit Obligation 27,084 7,913 - 34,997 -

Unamortized Bond

Premium

147,463

380,481

20,604

507,340

-

TOTAL $ 3,691,274 $ 20,136,613 $ 807,931 $ 23,019,956 $ 971,201

- 68 -

REQUIRED SUPPLEMENTARY INFORMATION


SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

GENERAL FUND


Variance

Original Final Over

Budget Budget Actual (Under)

REVENUES

Property Taxes 60,376,800$ 60,376,800$ 60,148,522$ (228,278)$

Other Taxes 67,029,000 67,029,000 64,934,190 (2,094,810)

Intergovernmental 1,085,926 1,196,426 1,175,006 (21,420)

Licenses, Fees and Permits 5,874,300 5,874,300 6,974,853 1,100,553

Charges for Services 3,772,200 3,772,200 4,434,260 662,060

Fines 1,953,600 1,953,600 2,535,273 581,673

Interest 256,500 256,500 20,583 (235,917)

Other 204,201 204,201 272,695 68,494

Total Revenues 140,552,527 140,663,027 140,495,382 (167,645)

EXPENDITURES

Current

General Government 17,287,658 17,926,758 16,837,826 (1,088,932)

Public Safety 99,664,618 100,623,018 100,267,856 (355,162)

Streets and Transportation 11,653,696 11,627,496 10,440,927 (1,186,569)

Health and Welfare 6,372,414 6,382,014 6,257,915 (124,099)

Culture and Recreation 4,364,640 4,364,740 4,060,108 (304,632)

Economic Development 2,285,894 2,305,094 2,102,717 (202,377)

Total Expenditures 141,628,920 143,229,120 139,967,349 (3,261,771)


OVER EXPENDITURES (1,076,393) (2,566,093) 528,033 3,094,126


Transfers (Out) - - (300,000) (300,000)

Total Other Financing Sources (Uses) - - (300,000) (300,000)

NET CHANGE IN FUND BALANCE (1,076,393)$ (2,566,093)$ 228,033 2,794,126$

FUND BALANCE, JANUARY 1 20,984,248

FUND BALANCE, DECEMBER 31 21,212,281$

(See independent auditor's report.)- 69 -

(2) (4)

Actuarial Unfunded UAAL

Accrued Actuarial as a

Actuarial (1) Liability (3) Accrued Percentage

Valuation Actuarial (AAL) Funded Liability (5) of Covered

Date Value of Entry-Age Ratio (UAAL) Covered Payroll

December 31, Assets Normal (1) / (2) (2) - (1) Payroll (4) / (5)

2007 87,989,628$ 100,049,018$ 87.95% 12,059,390$ 40,348,241$ 29.89%

2008 74,354,004 103,624,121 71.75% 29,270,117 42,779,026 68.42%

2009 65,621,368 101,138,862 64.88% 35,517,494 44,263,265 80.24%

2010 68,785,978 106,584,635 64.54% 37,798,657 39,058,616 96.77%

2011 71,714,555 109,869,903 65.27% 38,155,348 37,357,819 102.13%

2012 75,752,092 115,654,588 65.50% 39,902,496 38,825,698 102.77%

December 31, 2012


SCHEDULE OF FUNDING PROGRESS

ILLINOIS MUNICIPAL RETIREMENT FUND




FIREFIGHTERS' PENSION FUND

December 31, 2012

(2) (4)







2007 92,697,208$ 160,350,904$ 57.81% 67,653,696$ 18,051,520$ 374.78%

2008 83,184,455 174,217,151 47.75% 91,032,696 18,943,346 480.55%

2009 93,631,059 186,297,859 50.26% 92,666,800 19,102,729 485.10%

2010 103,639,618 196,856,226 52.65% 93,216,608 18,711,049 498.19%

2011 106,721,205 203,497,114 52.44% 96,775,909 18,653,043 518.82%

2012 117,268,887 223,524,431 52.46% 106,255,544 19,252,373 551.91%




POLICE PENSION FUND

December 31, 2012

(2) (4)







2007 115,624,649$ 204,396,008$ 56.57% 88,771,359$ 23,362,736$ 379.97%

2008 102,471,498 223,697,402 45.81% 121,225,904 24,913,911 486.58%

2009 114,040,858 236,796,407 48.16% 122,755,549 26,158,149 469.28%

2010 126,755,289 247,567,688 51.20% 120,812,399 25,007,815 483.10%

2011 131,842,905 263,290,575 50.08% 131,447,670 25,922,346 507.08%

2012 144,783,442 297,045,318 48.74% 152,261,876 26,708,019 570.10%


(2) (4)







2007 15,608,508$ 155,475,378$ 10.04% 139,866,870$ 66,557,105$ 210.15%

2008 18,831,066 157,770,027 11.94% 138,938,961 72,246,059 192.31%

2009 22,378,004 173,681,516 12.88% 151,303,512 72,367,412 209.08%

2010 24,193,191 172,968,000 13.99% 148,774,809 64,712,359 229.90%

2011 24,199,774 165,242,261 14.65% 141,042,487 65,237,549 216.20%

2012 26,735,905 197,518,139 13.54% 170,782,234 72,083,003 236.92%

December 31, 2012



OTHER POSTEMPLOYMENT BENEFIT PLAN


Annual

Required

Year Ended Employer Contribution Percentage

December 31, Contributions (ARC) Contributed

2007 4,128,288$ 4,128,288$ 100.00%

2008 4,372,016 4,372,016 100.00%

2009 4,470,590 4,470,590 100.00%

2010 3,822,990 4,163,652 91.82%

2011 3,961,882 4,273,127 92.72%

2012 4,603,427 4,603,427 100.00%

December 31, 2012


SCHEDULE OF EMPLOYER CONTRIBUTIONS

ILLINOIS MUNICIPAL RETIREMENT FUND





December 31, 2012

Annual

Required

Year Ended Employer Contribution Percent


2007 5,511,901$ 5,510,761$ 100.02%

2008 6,570,934 6,544,272 100.41%

2009 6,729,000 6,728,930 100.00%

2010 8,268,900 8,268,060 100.01%

2011 8,574,474 8,558,590 100.19%

2012 7,380,005 7,779,759 94.86%




POLICE PENSION FUND

December 31, 2012

Annual

Required

Year Ended Employer Contribution Percent


2007 6,145,484$ 6,144,161$ 100.02%

2008 7,152,523 7,150,811 100.02%

2009 7,821,000 7,820,659 100.00%

2010 9,901,400 9,900,826 100.01%

2011 10,364,821 10,349,019 100.15%

2012 8,270,619 9,030,372 91.59%


Annual

Required

Year Ended Employer Contribution Percentage


2007 17,790,881$ 16,764,385$ 106.12%

2008 6,810,269 13,052,085 52.18%

2009 6,911,969 11,951,819 57.83%

2010 4,548,786 12,361,724 36.80%

2011 4,580,046 11,773,685 38.90%

2012 5,380,735 11,182,621 48.12%

December 31, 2012



OTHER POSTEMPLOYMENT BENEFIT PLAN


- 78 -


NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

December 31, 2012

BUDGETS AND BUDGETARY ACCOUNTING

The City budget represents departmental expenditures and estimated revenues authorized by the

budget. The budget is adopted on the modified accrual basis of accounting and the current

financial resources measurement focus, consistent with GAAP. The City follows these

procedures in establishing the budgetary data reflected in the required supplementary

information:

• The Mayor submits to the City Council a proposed budget for all funds except the

Permanent Fund and Agency Funds. The budget includes proposed expenditures and the

means of financing them.

• A public hearing is held to obtain citizen comments.

• Prior to December 31 the budget is legally enacted through passage of an ordinance.

• The Mayor may transfer budgeted amounts between departments within any fund.

Transfers between objects within a department or within a fund without departmental

segregation may be made by the Chief Financial Officer/City Treasurer. The legal level of

budgetary control is the department level or, where no departmental segregation of a fund

exists, the fund level. Three budget amendments were approved by the City Council.

• All budgets lapse at year end.

- 78 -

MAJOR GOVERNMENTAL FUNDS


SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE - BUDGET AND ACTUAL

DEBT SERVICE FUND


Variance

Original Final Over


REVENUES

Property Taxes 4,000,000$ 4,000,000$ 4,000,885$ 885$

Other Taxes

Real Estate Transfer Tax 1,300,000 1,300,000 1,921,008 621,008

Intergovernmental Revenue 444,700 444,700 444,678 (22)

Development Participation 1,103,600 - 95 95

Investment Income 50,000 50,000 639 (49,361)

Total Revenues 6,898,300 5,794,700 6,367,305 572,605

EXPENDITURES

Debt Service

Principal

Series 2001B 1,045,000 - - -

Series 2003B 980,000 980,000 980,000 -

Series 2004A 440,000 7,495,000 7,355,000 (140,000)

Series 2004B 590,000 3,835,000 3,835,000 -

Series 2006 855,000 855,000 855,000 -

Series 2007 3,285,000 3,285,000 3,285,000 -

Series 2008 2,780,000 2,780,000 2,780,000 -

Series 2009A 910,000 910,000 910,000 -

Series 2009B 330,000 330,000 330,000 -

Interest

Series 2001B 58,600 - - -

Series 2003B 327,200 327,200 39,200 (288,000)

Series 2004A 300,700 300,700 158,047 (142,653)

Series 2004B 141,800 141,800 81,194 (60,606)

Series 2006 1,290,200 1,290,200 1,290,150 (50)

Series 2007 540,900 540,900 540,900 -

Series 2008 3,610,000 3,610,000 3,609,925 (75)

Series 2009A 577,800 577,800 577,746 (54)

Series 2009B 160,300 160,300 160,279 (21)

Series 2011 - - 189,988 189,988

Other Charges 10,000 10,000 392,020 382,020

Total Expenditures 18,232,500 27,428,900 27,369,449 (59,451)


OVER EXPENDITURES (11,334,200) (21,634,200) (21,002,144) 632,056


Transfers In 10,939,800 10,939,800 10,939,800 -

Refunding Bonds Issued - 10,300,000 10,070,000 (230,000)

Premium on Refunding Bonds Issued - - 285,676 285,676

Total Other Financing Sources (Uses) 10,939,800 21,239,800 21,295,476 55,676

NET CHANGE IN FUND BALANCE (394,400)$ (394,400)$ 293,332 687,732$





Motor Fuel Tax Fund. To account for the activities related to street maintenance and construction. Financing is provided by the City’s share of state gasoline taxes. State law restricts the use of these gasoline taxes for street-related purposes. Safety, Health and Public Enhancement (SHAPE) Fund. To account for certain public safety initiatives.

Financing is provided by 20% of the City’s home rule sales tax revenues that are restricted for public

safety initiatives by the enabling ordinance for the tax. Sanitation Fund. To account for the expenditure of the City’s environmental refuse disposal fee. The fee

has been restricted to cover the cost of disposing of unbundled brush, leaves, natural Christmas trees and

recyclables in the community. Wireless 911 Surcharge Fund. To account for the expenditure of 911 surcharge fees restricted by the State of Illinois for the purpose of developing and maintaining the capacity to respond to calls for emergency assistance from wireless communication devices. Block Grant Fund. To account for the revenue and expenditures associated with the Community Development Block Grant (CDBG) program. Grant monies are provided by the U.S. Department of Housing and Urban Development and are restricted for the development of urban communities by expanding economic opportunities and providing decent housing and a suitable living environment. The beneficiaries of the CDBG program must be individuals with low or moderate incomes. Section 108 Loan Fund. To account for transactions associated with the City’s loan program pursuant to Section 108 of the Federal Housing and Community Development Act of 1974. Under this program, loans are made to businesses operating in a designated area of the City provided that the businesses commit to creating a minimally required number of jobs. Foreign Fire Insurance Tax Fund. To account for the expenditures of a 2% tax on premiums for fire insurance policies covering property in the City that are sold by insurance companies not incorporated in Illinois. Under state law, the City must annually appropriate foreign fire insurance tax monies to an administrative board comprised of members of its fire department to be used for the benefit of the department. Asset Seizure Fund. To account for monies confiscated by the Aurora Police Department as the lead agency in state, drug-related criminal cases. Monies deposited in this fund must be remitted to the State of Illinois. Investment income earned in this fund must be expended in local law enforcement efforts. Federal Asset Forfeitures Fund. To account for monies acquired through the outcome of federal, drug-related criminal cases. Federal law requires that these monies be expended in local law enforcement efforts. State Asset Forfeitures Fund. To account for monies acquired through the outcome of state, drug-related criminal cases. State law requires that these monies be expended in local, drug-related law enforcement efforts. TIF #1 Downtown Fund. To account for incremental revenues restricted for redevelopment costs associated with the City’s Tax Increment Financing District #1 located in the downtown area. TIF #2 Farnsworth Fund. To account for incremental revenues restricted for redevelopment costs associated with the City’s Tax Increment Financing District #2 located in the vicinity of Interstate Route 88 and Farnsworth Avenue. TIF #3 River City Fund. To account for incremental revenues restricted for redevelopment costs associated with the City’s Tax Increment Financing District #3 located in an area immediately south of the downtown.


TIF #4 Bell Gale Fund. To account for incremental revenues restricted for redevelopment costs associated with the City’s Tax Increment Financing District #4 encompassing an industrial park on the near west side. TIF #5 West River Area Fund. To account for incremental revenues restricted for redevelopment costs

associated with the City’s Tax Increment Financing District #5 located in the area northwest of the

downtown. TIF #6 East River Area Fund. To account for incremental revenues restricted for redevelopment costs

associated with the City’s Tax Increment Financing District #6 located in the area northeast of the

downtown.

TIF #7 East Farnsworth Area Fund. To account for incremental revenues restricted for redevelopment

costs associated with the City’s Tax Increment Financing District #7 located in the area northeast of the

downtown.

TIF #8 West Farnsworth Area Fund. To account for incremental revenues restricted for redevelopment

costs associated with the City’s Tax Increment Financing District #8 located in the area northeast of the

downtown. Special Service Areas Fund. To account for revenues and expenditures associated with special service areas within the City. Financing is provided by special tax levies on properties within the special service areas (SSA). Revenues are restricted for projects in the SSAs concerned.

Stormwater Management Fee Fund. To account for resources to accomplish stormwater management

projects. Financing is being provided by a bi-monthly $6.90 charge to each residential and business water

and sewer service account that is restricted for stormwater management projects by the enabling

ordinance for the fee.

Long-Term Control Plan Fee Fund. To account for resources for projects designed to manage overflows

from combined sewers in accordance with federal law and the policies of the United States Environmental

Protection Agency. Financing is being provided by a bi-monthly $2.05 charge to each residential and

business water and sewer service account that is restricted for combined sewer overflow projects by the

enabling ordinance for the fee.

Capital Improvements Fund A. To account for resources assigned to accomplish various capital projects

in the City, especially roadway and building projects. Financing is being provided primarily by a portion

of the City’s 1.25% home rule sales tax.

2008A Tax Increment Financing Bond Project Fund. To account for the proceeds of tax increment

revenue bonds issued in 2008 to provide resources for land acquisition, environmental remediation, open

space establishment, infrastructure and other redevelopment costs in TIF District #6.

2008B Tax Increment Financing Bond Project Fund. To account for the proceeds of tax increment

revenue bonds issued in 2008 to provide resources for environmental remediation, infrastructure and other

redevelopment costs associated with the Shodeen residential construction project in TIF District #3.

Airport Fund. To account for funds assigned for capital projects at the Aurora Municipal Airport. Financing is provided in large part by various fees charged to airport tenants and users.


Gaming Tax Fund. To account for the expenditure of a $1 admissions tax and 5% wagering tax collected

at the Hollywood Riverboat Casino in Aurora that has been assigned by the City Council primarily for

capital purposes.

Fire Impact Fees Fund. To account for the expenditure of fees paid by developers that have been

restricted for constructing and equipping new fire stations.

Public Works Impact Fees Fund. To account for the expenditure of fees paid by developers that have

been restricted for the purchase of additional street maintenance equipment to serve new developments.

Ward Projects Fund. To account for various capital projects in the City’s ten wards that are requested by

“ward committees” comprised of residents of those wards. Projects include street improvements and the

installation of sidewalks and streetlights, as well as other projects locally desired. A separate subfund

exists to account for the projects of each ward. Financing is provided by operating transfers from the

Capital Improvements Fund A and the Gaming Tax Fund that have been assigned for this purpose.

2006 General Obligation Bond Project Fund. To account for the proceeds of general obligation bonds

issued in 2006 to provide resources for stormwater management, a new police headquarters building (part

of the cost), a fire substation and optical fiber installation projects.


issued in 2008 to provide resources for the construction of a new police headquarters building and the

acquisition of a new E911 system.


issued in 2009 to provide resources for the acquisition of a new public safety radio system.


COMBINING BALANCE SHEET


December 31, 2012

Total

Nonmajor

Special Capital Governmental

Revenue Projects Permanent Funds


OF RESOURCES

ASSETS

Cash and Investments 53,321,002$ 33,948,308$ 442,550$ 87,711,860$


Where Applicable

Property Taxes

Special Service Areas Levies 1,347,094 80,473 - 1,427,567

Other Taxes - 1,386,151 - 1,386,151

Loans Receivable 2,411,574 122,776 - 2,534,350

Interest 396,309 250,342 - 646,651

Rental Fees - 2,232 - 2,232

Miscellaneous 1,345,233 1,638,934 - 2,984,167

Due from Other Funds 5,012,190 6,905,593 - 11,917,783

Due from Other Governments 3,565,164 1,924,696 - 5,489,860

Prepaid Items - 15,695 - 15,695

Property Held for Resale 337,695 - - 337,695

Total Assets 67,736,261 46,275,200 442,550 114,454,011


None - - - -



OUTFLOWS OF RESOURCES 67,736,261$ 46,275,200$ 442,550$ 114,454,011$

- 80 -

Total

Nonmajor



LIABILITIES

Accounts Payable 3,455,405$ 940,105$ -$ 4,395,510$

Accrued Payroll - 6,055 - 6,055

Retainage Payable 451,604 728,694 - 1,180,298

Unearned Revenue 6,445,414 2,072,643 - 8,518,057

Due to Other Funds 5,012,190 405,593 - 5,417,783

Due to Other Governments 21,441 - - 21,441

Deposits Payable - 9,200 - 9,200

Total Liabilities 15,386,054 4,162,290 - 19,548,344


Unavailable Revenue - Property Taxes 1,346,999 80,473 - 1,427,472

Total Deferred Inflows of Resources 1,346,999 80,473 - 1,427,472

Total Liabilities and Deferred

Inflows of Resources 16,733,053 4,242,763 - 20,975,816

FUND BALANCES

Nonspendable

Prepaid Items - 15,695 - 15,695

Restricted

Working Cash - - 442,550 442,550

Public Safety 16,309,838 2,542,828 - 18,852,666

Streets and Transportation 10,500,429 150,133 - 10,650,562

Health and Welfare 5,817,166 - - 5,817,166

Economic Development 21,166,772 1,662,250 - 22,829,022

Capital Projects - 3,326,889 - 3,326,889

Unrestricted

Assigned

Public Safety 74,955 - - 74,955

Health and Welfare 348,099 - - 348,099

Capital Projects - 34,334,642 - 34,334,642

Unassigned (3,214,051) - - (3,214,051)

Total Fund Balances 51,003,208 42,032,437 442,550 93,478,195

TOTAL LIABILITIES, DEFERRED INFLOWS

OF RESOURCES AND FUND BALANCES 67,736,261$ 46,275,200$ 442,550$ 114,454,011$





COMBINING STATEMENT OF REVENUES, EXPENDITURES



Total

Nonmajor



REVENUES

Property Taxes 12,930,994$ 25,820$ -$ 12,956,814$

Other Taxes 3,982,009 17,654,814 - 21,636,823

Intergovernmental 10,757,703 10,588,389 - 21,346,092

Licenses, Fees and Permits - 49,708 - 49,708

Impact Fees - 30,600 - 30,600

Recovery of Costs - 746,605 - 746,605

Charges for Services 6,834,380 803,601 - 7,637,981

Donations - 37,000 - 37,000

Investment Income 90,589 85,012 448 176,049

Other 223,409 16,469 - 239,878

Total Revenues 34,819,084 30,038,018 448 64,857,550

EXPENDITURES

Current

General Government - 679,814 - 679,814

Public Safety 2,736,319 515,201 - 3,251,520

Streets and Transportation 6,412,546 804,484 - 7,217,030

Health and Welfare 5,334,052 - - 5,334,052

Culture and Recreation - 1,629,073 - 1,629,073

Economic Development 12,129,955 409,952 - 12,539,907

Capital Outlay - 24,522,214 - 24,522,214

Debt Service

Principal 5,991,707 - - 5,991,707

Interest 1,569,114 - - 1,569,114

Total Expenditures 34,173,693 28,560,738 - 62,734,431


OVER EXPENDITURES 645,391 1,477,280 448 2,123,119


Transfers In 17,076,600 750,000 - 17,826,600

Transfers (Out) (21,160,400) (6,581,000) - (27,741,400)

Proceeds from the Sale of Capital Assets - 2,978,132 - 2,978,132

Refunding Bonds Issued 3,095,000 - - 3,095,000

Premium on Refunding Bonds Issued 181,179 - - 181,179

Total Other Financing Sources (Uses) (807,621) (2,852,868) - (3,660,489)

NET CHANGE IN FUND BALANCES (162,230) (1,375,588) 448 (1,537,370)

FUND BALANCES, JANUARY 1 51,165,438 43,408,025 442,102 95,015,565

FUND BALANCES, DECEMBER 31 51,003,208$ 42,032,437$ 442,550$ 93,478,195$



Motor Fuel Wireless

Tax SHAPE Sanitation 911 Surcharge Block Grant

ASSETS

Cash and Investments 9,971,621$ 4,928,442$ 210,214$ 7,313,633$ 122,480$

Receivables

Property Taxes, Net of Allowance

Special Service Areas Levy - - - - -

Loans Receivable - - - - 1,569,390

Interest 84,251 43,519 - 94,342 -

Other - - 407,072 - -

Due from Other Funds - - - - -

Due from Other Governments

Federal and State Grants 1,014,519 217,650 - - 276,412

Motor Fuel Tax Allotment 409,655 - - - -

Sales Tax - 1,054,966 13,715 - -

Other - - - 515,038 -

Property Held for Resale - - - - 337,695

Total Assets 11,480,046 6,244,577 631,001 7,923,013 2,305,977


None - - - - -

Total Deferred Outflows of Resources - - - - -

TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 11,480,046 $ 6,244,577 $ 631,001 $ 7,923,013 $ 2,305,977

LIABILITIES

Accounts Payable 1,218,380$ 197,953$ 158,407$ -$ 305,124$

Retainage Payable 10,000 891 - - 1,496

Unearned Revenue - - - - 1,913,308

Due to Other Funds - - - - -

Due to Other Governments - - - - -

Total Liabilities 1,228,380 198,844 158,407 - 2,219,928


Unavailable Revenue - Property Taxes - - - - -

Total Deferred Inflows of Resources - - - - -

Total Liabilities and Deferred Inflows of Resources 1,228,380 198,844 158,407 - 2,219,928

FUND BALANCES

Restricted

Public Safety - 5,970,778 - 7,923,013 -

Streets and Transportation 10,251,666 - - - -

Health and Welfare - - 348,539 - 86,049

Economic Development - - - - -

Unrestricted

Assigned

Public Safety - 74,955 - - -

Health and Welfare - - 124,055 - -

Unassigned - - - - -

Total Fund Balances 10,251,666 6,045,733 472,594 7,923,013 86,049

TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 11,480,046$ 6,244,577$ 631,001$ 7,923,013$ 2,305,977$


ASSETS AND DEFERRED OUTFLOWS OF RESOURCES




NONMAJOR SPECIAL REVENUE FUNDS

December 31, 2012

- 83 -

Foreign Fire Federal State

Section 108 Insurance Asset Asset Asset TIF #1 TIF #2 TIF #3 TIF #4

Loan Tax Seizure Forfeitures Forfeitures Downtown Farnsworth River City Bell Gale

199,590$ 407,879$ 47,502$ 3,227,969$ 857,107$ 3,226,422$ 2,605,188$ 1,015,697$ 28,189$

- - - - - - - - -

842,184 - - - - - - - -

- 2,864 - 16,878 12,720 31,848 - 9,750 -

- - - - 1,770 250,000 - - -

- - - - - - 118,202 - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

672 - - - - - - - -

- - - - - - - - -

1,042,446 410,743 47,502 3,244,847 871,597 3,508,270 2,723,390 1,025,447 28,189

- - - - - - - - -

- - - - - - - - -

$ 1,042,446 $ 410,743 $ 47,502 $ 3,244,847 $ 871,597 $ 3,508,270 $ 2,723,390 $ 1,025,447 $ 28,189

-$ 11,089$ -$ 35,111$ 2,200$ 443,052$ 881,240$ 15,035$ -$

- - - - - 62,522 162,213 - -

842,184 - - 2,087,031 1,770 - - - -

- - - - - - 4,893,988 - -

- - 21,441 - - - - - -

842,184 11,089 21,441 2,122,142 3,970 505,574 5,937,441 15,035 -

- - - - - - - - -

- - - - - - - - -

842,184 11,089 21,441 2,122,142 3,970 505,574 5,937,441 15,035 -

- 399,654 26,061 1,122,705 867,627 - - - -

- - - - - - - - -

200,262 - - - - - - - -

- - - - - 3,002,696 - 1,010,412 28,189

- - - - - - - - -

- - - - - - - - -

- - - - - - (3,214,051) - -

200,262 399,654 26,061 1,122,705 867,627 3,002,696 (3,214,051) 1,010,412 28,189

1,042,446$ 410,743$ 47,502$ 3,244,847$ 871,597$ 3,508,270$ 2,723,390$ 1,025,447$ 28,189$

(This statement is continued on the following pages.)- 84 -

TIF #5 TIF #6 TIF #7 TIF #8 Special

West River East River West Farnsworth East Farnsworth Service

Area Area Area Area Areas

ASSETS

Cash and Investments 860,648$ 791,874$ 6,674,257$ 4,060,480$ 287,183$

Receivables

Property Taxes, Net of Allowance

Special Service Areas Levy - - - - 1,347,094

Loans Receivable - - - - -

Interest 4,065 6,250 28,991 23,500 -

Other - - - - -

Due from Other Funds - - 4,893,988 - -

Due from Other Governments

Federal and State Grants - - - - -

Motor Fuel Tax Allotment - - - - -

Sales Tax - - - - -

Other - - - - -

Property Held for Resale - - - - -

Total Assets 864,713 798,124 11,597,236 4,083,980 1,634,277


None - - - - -

Total Deferred Outflows of Resources - - - - -

TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 864,713 $ 798,124 $ 11,597,236 $ 4,083,980 $ 1,634,277

LIABILITIES

Accounts Payable 39,966$ 60,410$ -$ -$ 38,515$

Retainage Payable - - - - -

Unearned Revenue - - - - -

Due to Other Funds - - - 118,202 -

Due to Other Governments - - - - -

Total Liabilities 39,966 60,410 - 118,202 38,515


Unavailable Revenue - Property Taxes - - - - 1,346,999

Total Deferred Inflows of Resources - - - - 1,346,999

Total Liabilities and Deferred Inflows of Resources 39,966 60,410 - 118,202 1,385,514

FUND BALANCES

Restricted

Public Safety - - - - -

Streets and Transportation - - - - 248,763

Health and Welfare - - - - -

Economic Development 824,747 737,714 11,597,236 3,965,778 -

Unrestricted

Assigned

Public Safety - - - - -


Unassigned - - - - -

Total Fund Balances 824,747 737,714 11,597,236 3,965,778 248,763

TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 864,713$ 798,124$ 11,597,236$ 4,083,980$ 1,634,277$





COMBINING BALANCE SHEET (Continued)


December 31, 2012

- 85 -

Stormwater Long-Term

Management Control

Fee Plan Fee Total

5,416,552$ 1,068,075$ 53,321,002$

- - 1,347,094

- - 2,411,574

33,998 3,333 396,309

532,954 153,437 1,345,233

- - 5,012,190

- - 1,508,581

- - 409,655

- - 1,068,681

62,537 - 578,247

- - 337,695

6,046,041 1,224,845 67,736,261

- - -

- - -

$ 6,046,041 $ 1,224,845 $ 67,736,261

9,899$ 39,024$ 3,455,405$

214,482 - 451,604

1,601,121 - 6,445,414

- - 5,012,190

- - 21,441

1,825,502 39,024 15,386,054

- - 1,346,999

- - 1,346,999

1,825,502 39,024 16,733,053

- - 16,309,838

- - 10,500,429

3,997,317 1,184,999 5,817,166

- - 21,166,772

- - 74,955

223,222 822 348,099

- - (3,214,051)

4,220,539 1,185,821 51,003,208

6,046,041$ 1,224,845$ 67,736,261$


Motor Fuel Wireless

Tax SHAPE Sanitation 911 Surcharge Block Grant

REVENUES

Property Taxes -$ -$ -$ -$ -$

Other Taxes

Sales Tax - 3,768,346 48,989 - -

Foreign Fire Insurance Tax - - - - -

Intergovernmental

Federal and State Grants 1,238,419 773,078 - - 2,650,894

Motor Fuel Tax Allotments 5,782,775 - - - -

Charges for Services - - 1,910,598 1,083,674 234,926

Stormwater Management Fees - - - - -

Long-Term Capital Planning Fee - - - - -

Investment Income 14,904 12,642 254 13,733 63

Other - 83,083 - - -

Total Revenues 7,036,098 4,637,149 1,959,841 1,097,407 2,885,883

EXPENDITURES

Current

Public Safety - 2,484,149 - 14,952 -

Streets and Transportation 5,370,578 - - - -

Health and Welfare - - 1,873,332 - 3,307,460

Economic Development - - - - -

Debt Service

Principal - - - - -

Interest - - - - -

Total Expenditures 5,370,578 2,484,149 1,873,332 14,952 3,307,460


OVER EXPENDITURES 1,665,520 2,153,000 86,509 1,082,455 (421,577)


Transfers In - - - - 300,000

Transfers (Out) - (3,620,500) - - -

Issuance of Refunding Bonds - - - - -

Premium on Refunding Bonds Issued - - - - -

Total Other Financing Sources (Uses) - (3,620,500) - - 300,000

NET CHANGE IN FUND BALANCES 1,665,520 (1,467,500) 86,509 1,082,455 (121,577)

FUND BALANCES, JANUARY 1 8,586,146 7,513,233 386,085 6,840,558 207,626

FUND BALANCES, DECEMBER 31 10,251,666$ 6,045,733$ 472,594$ 7,923,013$ 86,049$






- 87 -

Foreign Fire Federal State

Section 108 Insurance Asset Asset Asset TIF #1 TIF #2 TIF #3 TIF #4

Loan Tax Seizure Forfeitures Forfeitures Downtown Farnsworth River City Bell Gale

-$ -$ -$ -$ -$ 2,003,636$ 8,320,538$ 704,523$ 79,823$

- - - - - - - - -

- 164,674 - - - - - - -

- - - - - 250,000 - - -

- - - - - - - - -

146,017 - - - - - - - -

- - - - - - - - -

- - - - - - - - -

24 (28) 85 10,610 428 3,974 46,571 5,322 13

- - - 78,586 61,740 - - - -

146,041 164,646 85 89,196 62,168 2,257,610 8,367,109 709,845 79,836

- 98,832 - 78,586 59,800 - - - -

- - - - - - - - -

153,260 - - - - - - - -

- - - - - 2,414,410 8,970,952 386,483 51,649

- - - - - - 965,000 575,000 -

- - - - - - 160,290 665,375 -

153,260 98,832 - 78,586 59,800 2,414,410 10,096,242 1,626,858 51,649

(7,219) 65,814 85 10,610 2,368 (156,800) (1,729,133) (917,013) 28,187

- - - - - - - 300,000 -

- - - - - (225,000) (15,600,000) - -

- - - - - - - - -

- - - - - - - - -

- - - - - (225,000) (15,600,000) 300,000 -

(7,219) 65,814 85 10,610 2,368 (381,800) (17,329,133) (617,013) 28,187

207,481 333,840 25,976 1,112,095 865,259 3,384,496 14,115,082 1,627,425 2

200,262$ 399,654$ 26,061$ 1,122,705$ 867,627$ 3,002,696$ (3,214,051)$ 1,010,412$ 28,189$

(This statement is continued on the following pages.)- 88 -

TIF #5 TIF #6 TIF #7 TIF #8 Special

West River East River West FarnsworthEast Farnsworth Service

Area Area Area Area Areas

REVENUES

Property Taxes 199,829$ 254,730$ 4,144$ 1,734$ 1,362,037$

Other Taxes

Sales Tax - - - - -

Foreign Fire Insurance Tax - - - - -

Intergovernmental

Federal and State Grants - - - - -

Motor Fuel Tax Allotments - - - - -

Charges for Services - - - - -

Stormwater Management Fees - - - - -

Long-Term Capital Planning Fee - - - - -

Investment Income 1,090 1,956 (878) (26,606) 650

Other - - - - -

Total Revenues 200,919 256,686 3,266 (24,872) 1,362,687

EXPENDITURES

Current

Public Safety - - - -

Streets and Transportation - - - - 363,620


Economic Development 52,861 238,220 6,030 9,350 -

Debt Service

Principal - 230,000 - - 4,080,000

Interest - 421,538 - - 284,731

Total Expenditures 52,861 889,758 6,030 9,350 4,728,351


OVER EXPENDITURES 148,058 (633,072) (2,764) (34,222) (3,365,664)


Transfers In - 751,600 11,600,000 4,000,000 125,000

Transfers (Out) - - - - -

Issuance of Refunding Bonds - - - - 3,095,000

Premium on Refunding Bonds Issued - - - - 181,179

Total Other Financing Sources (Uses) - 751,600 11,600,000 4,000,000 3,401,179

NET CHANGE IN FUND BALANCES 148,058 118,528 11,597,236 3,965,778 35,515

FUND BALANCES, JANUARY 1 676,689 619,186 - - 213,248

FUND BALANCES, DECEMBER 31 824,747$ 737,714$ 11,597,236$ 3,965,778$ 248,763$



AND CHANGES IN FUND BALANCES (Continued)



- 89 -

Stormwater Long-Term

Management Control

Fee Plan Fee Total

-$ -$ 12,930,994$

- - 3,817,335

- - 164,674

62,537 - 4,974,928

- - 5,782,775

- - 3,375,215

2,666,309 - 2,666,309

- 792,856 792,856

4,990 792 90,589

- - 223,409

2,733,836 793,648 34,819,084

- - 2,736,319

595,106 83,242 6,412,546

- - 5,334,052

- - 12,129,955

141,707 - 5,991,707

37,180 - 1,569,114

773,993 83,242 34,173,693

1,959,843 710,406 645,391

- - 17,076,600

(1,714,900) - (21,160,400)

- - 3,095,000

- - 181,179

(1,714,900) - (807,621)

244,943 710,406 (162,230)

3,975,596 475,415 51,165,438

4,220,539$ 1,185,821$ 51,003,208$





MOTOR FUEL TAX FUND


Variance

Original Final Over


REVENUES

Intergovernmental

Federal and State Grants 2,380,800$ 2,380,800$ 1,238,419$ (1,142,381)$

Motor Fuel Tax Allotments 4,841,500 4,841,500 5,782,775 941,275

Investment Income 25,000 25,000 14,904 (10,096)

Total Revenues 7,247,300 7,247,300 7,036,098 (211,202)

EXPENDITURES

Current

Streets and Transportation

General Maintenance 4,050,000 4,050,000 3,497,298 (552,702)

Roadway/Bridge Projects 6,368,800 6,368,800 1,873,280 (4,495,520)


NET CHANGE IN FUND BALANCE (3,171,500)$ (3,171,500)$ 1,665,520 4,837,020$







SHAPE FUND


Variance

Original Final Over


REVENUES

Other Taxes

Sales 3,820,000$ 3,820,000$ 3,768,346$ (51,654)$

Intergovernmental - 800,000 773,078 (26,922)


Other - 100,000 83,083 (16,917)

Total Revenues 3,845,000 4,745,000 4,637,149 (107,851)

EXPENDITURES

Public Safety

Materials and Supplies 1,340,800 1,375,400 282,952 (1,092,448)

Other Services and Charges 660,100 657,300 633,114 (24,186)

Capital Outlay 3,462,500 4,430,700 1,568,083 (2,862,617)



OVER EXPENDITURES (1,618,400) (1,718,400) 2,153,000 3,871,400


Transfers (Out) (3,620,500) (3,620,500) (3,620,500) -

Total Other Financing Sources (Uses) (3,620,500) (3,620,500) (3,620,500) -

NET CHANGE IN FUND BALANCE (5,238,900)$ (5,338,900)$ (1,467,500) 3,871,400$







SANITATION FUND


Variance

Original Final Over


REVENUES

Other Taxes

Sales 50,000$ 50,000$ 48,989$ (1,011)$

Charges for Services 1,850,000 1,850,000 1,910,598 60,598

Investment Income - - 254 254

Total Revenues 1,900,000 1,900,000 1,959,841 59,841

EXPENDITURES

Health and Welfare

Other Services and Charges 1,900,000 1,900,000 1,873,332 (26,668)


NET CHANGE IN FUND BALANCE -$ -$ 86,509 86,509$

FUND BALANCE, JANUARY 1 386,085

FUND BALANCE, DECEMBER 31 472,594$





WIRELESS 911 SURCHARGE FUND


Variance

Original Final Over


REVENUES

Intergovernmental

Federal and State Grants -$ -$ -$ -$

Charges for Services 900,000 900,000 1,083,674 183,674


Total Revenues 920,000 920,000 1,097,407 177,407

EXPENDITURES

Public Safety

Materials and Supplies 900,000 900,000 14,952 (885,048)

Other Services and Charges 40,000 40,000 - (40,000)

Total Expenditures 940,000 940,000 14,952 (925,048)

NET CHANGE IN FUND BALANCE (20,000)$ (20,000)$ 1,082,455 1,102,455$




Variance

Original Final Over


REVENUES

Intergovernmental

Federal and State Grants 5,356,841$ 5,356,841$ 2,650,894$ (2,705,947)$

Charges for Services

Loan Payments - - 28,149 28,149

Sale of Investment Property - - 206,777 206,777


Total Revenues 5,356,841 5,356,841 2,885,883 (2,470,958)

EXPENDITURES

Current

Health and Welfare 5,525,793 5,525,793 3,307,460 (2,218,333)


OVER EXPENDITURES (168,952) (168,952) (421,577) (252,625)


Transfers In 168,952 168,952 300,000 131,048

Total Other Financing Sources (Uses) 168,952 168,952 300,000 131,048

NET CHANGE IN FUND BALANCE -$ -$ (121,577) (121,577)$






BLOCK GRANT FUND






SECTION 108 LOAN FUND


Variance

Original Final Over


REVENUES


Loan Payments 153,600$ 153,600$ 146,017$ (7,583)$


Total Revenues 153,600 153,600 146,041 (7,559)

EXPENDITURES

Current

Health and Welfare 156,600 156,600 153,260 (3,340)

NET CHANGE IN FUND BALANCE (3,000)$ (3,000)$ (7,219) (4,219)$







FOREIGN FIRE INSURANCE TAX FUND


Variance

Original Final Over


REVENUES

Other Taxes

Foreign Fire Insurance Tax 140,000$ 140,000$ 164,674$ 24,674$

Investment Income 1,000 1,000 (28) (1,028)

Total Revenues 141,000 141,000 164,646 23,646

EXPENDITURES

Current

Public Safety 140,000 140,000 98,832 (41,168)

NET CHANGE IN FUND BALANCE 1,000$ 1,000$ 65,814 64,814$







ASSET SEIZURE FUND


Variance

Original Final Over


REVENUES

Investment Income -$ -$ 85$ 85$

EXPENDITURES

None - - - -

NET CHANGE IN FUND BALANCE -$ -$ 85 85$







FEDERAL ASSET FORFEITURES FUND


Variance

Original Final Over


REVENUES

Investment Income -$ -$ 10,610$ 10,610$

Proceeds from Forfeited Assets - - 78,586 78,586

Total Revenues - - 89,196 89,196

EXPENDITURES

Current

Public Safety











STATE ASSET FORFEITURES FUND


Variance

Original Final Over


REVENUES

Investment Income -$ -$ 428$ 428$

Proceeds from Forfeited Assets - - 61,740 61,740


EXPENDITURES

Public Safety

Materials and Supplies 200,000 162,500 490 (162,010)










TAX INCREMENT FINANCING DISTRICT #1 (DOWNTOWN) FUND


Variance

Original Final Over


REVENUES

Property Taxes 2,066,250$ 2,066,250$ 2,003,636$ (62,614)$

Intergovernmental

Federal and State Grants 250,000 250,000 250,000 -


Total Revenues 2,326,250 2,326,250 2,257,610 (68,640)

EXPENDITURES

Economic Development

Redevelopment and Assistance 2,976,800 2,976,800 2,013,683 (963,117)

Surplus Distribution 413,250 413,250 400,727 (12,523)



OVER EXPENDITURES (1,063,800) (1,063,800) (156,800) 907,000


Transfers (Out) (225,000) (225,000) (225,000) -

Sale of Capital Assets - - - -

Total Other Financing Sources (Uses) (225,000) (225,000) (225,000) -

NET CHANGE IN FUND BALANCE (1,288,800)$ (1,288,800)$ (381,800) 907,000$







TAX INCREMENT FINANCING DISTRICT #2 (FARNSWORTH) FUND


Variance

Original Final Over


REVENUES

Property Taxes 8,000,000$ 8,000,000$ 8,320,538$ 320,538$


Total Revenues 8,050,000 8,050,000 8,367,109 317,109

EXPENDITURES


Redevelopment and Assistance 12,714,000 12,714,000 7,970,952 (4,743,048)

Surplus Distribution 1,000,000 1,000,000 1,000,000 -

Debt Service

Principal 965,000 965,000 965,000 -

Interest 160,300 160,300 160,290 (10)



OVER EXPENDITURES (6,789,300) (6,789,300) (1,729,133) 5,060,167


Transfers (out) - (15,600,000) (15,600,000) -

Total Other Financing Sources (Uses) - (15,600,000) (15,600,000) -

NET CHANGE IN FUND BALANCE (6,789,300)$ (22,389,300)$ (17,329,133) 5,060,167$


FUND BALANCE (DEFICIT), DECEMBER 31 (3,214,051)$





TAX INCREMENT FINANCING DISTRICT #3 (RIVER CITY) FUND


Variance

Original Final Over


REVENUES

Property Taxes 800,000$ 800,000$ 704,523$ (95,477)$

Investment Income 5,000 5,000 5,322 322

Total Revenues 805,000 805,000 709,845 (95,155)

EXPENDITURES


Redevelopment and Assistance 32,000 367,000 386,483 19,483

Debt Service

Principal 500,000 575,000 575,000 -

Interest 686,400 686,400 665,375 (21,025)





Transfers In 300,000 300,000 300,000 -

Total Other Financing Sources (Uses) 300,000 300,000 300,000 -








TAX INCREMENT FINANCING DISTRICT #4 (BELL GALE) FUND


Variance

Original Final Over


REVENUES

Property Taxes 60,000$ 60,000$ 79,823$ 19,823$


Total Revenues 60,000 60,000 79,836 19,836

EXPENDITURES


Redevelopment Assistance 60,000 60,000 51,649 (8,351)


NET CHANGE IN FUND BALANCE -$ -$ 28,187 28,187$

FUND BALANCE, JANUARY 1 2






TAX INCREMENT FINANCING DISTRICT #5 (WEST RIVER AREA) FUND


Variance

Original Final Over


REVENUES

Property Taxes 375,000$ 375,000$ 199,829$ (175,171)$


Total Revenues 376,000 376,000 200,919 (175,081)

EXPENDITURES


Redevelopment Assistance 404,300 404,300 12,895 (391,405)










TAX INCREMENT FINANCING DISTRICT #6 (EAST RIVER AREA) FUND


Variance

Original Final Over


REVENUES

Property Taxes 325,000$ 325,000$ 254,730$ (70,270)$


Total Revenues 326,000 326,000 256,686 (69,314)

EXPENDITURES


Redevelopment and Assistance 387,000 387,000 187,274 (199,726)


Debt Service

Principal 230,000 230,000 230,000 -

Interest 421,600 421,600 421,538 (62)

Total Expenditures 1,103,600 1,103,600 889,758 (213,842)


OVER EXPENDITURES (777,600) (777,600) (633,072) 144,528


Transfers In 651,600 651,600 751,600 100,000

Transfers (Out) - - - -









TAX INCREMENT FINANCING DISTRICT #7 (WEST FARNSWORTH AREA) FUND


Variance

Original Final Over


REVENUES

Property Taxes -$ -$ 4,144$ 4,144$

Investment Income - - (878) (878)


EXPENDITURES


Redevelopment and Assistance - 6,100 6,030 (70)

Total Expenditures - 6,100 6,030 (70)


OVER EXPENDITURES - (6,100) (2,764) 3,336


Transfers In - 11,600,000 11,600,000 -

Total Other Financing Sources (Uses) - 11,600,000 11,600,000 -

NET CHANGE IN FUND BALANCE -$ 11,593,900$ 11,597,236 3,336$

FUND BALANCE, JANUARY 1 -






TAX INCREMENT FINANCING DISTRICT #8 (EAST FARNSWORTH AREA) FUND


Variance

Original Final Over


REVENUES

Property Taxes -$ -$ 1,734$ 1,734$

Investment Income - - (26,606) (26,606)

Total Revenues - - (24,872) (24,872)

EXPENDITURES


Redevelopment and Assistance - 29,800 9,350 (20,450)

Total Expenditures - 29,800 9,350 (20,450)


OVER EXPENDITURES - (29,800) (34,222) (4,422)


Transfers In - 4,000,000 4,000,000 -

Total Other Financing Sources (Uses) - 4,000,000 4,000,000 -

NET CHANGE IN FUND BALANCE -$ 3,970,200$ 3,965,778 (4,422)$

FUND BALANCE, JANUARY 1 -






SPECIAL SERVICE AREAS FUND


Variance

Original Final Over


REVENUES

Property Taxes 1,402,800$ 1,402,800$ 1,362,037$ (40,763)$


Total Revenues 1,404,800 1,404,800 1,362,687 (42,113)

EXPENDITURES

Current


Other Services and Charges 334,600 339,600 363,620 24,020

Debt Service

Principal 930,000 4,130,000 4,080,000 (50,000)

Interest 305,200 305,200 284,731 (20,469)



OVER EXPENDITURES (165,000) (3,370,000) (3,365,664) 4,336


Transfers In 125,000 125,000 125,000 -

Issuance of Refunding Bonds - 3,200,000 3,095,000 (105,000)

Premium on Refunding Bonds Issued - - 181,179 181,179

Total Other Financing Sources (Uses) 125,000 3,325,000 3,401,179 76,179








STORMWATER MANAGEMENT FEE FUND


Variance

Original Final Over


REVENUES

Stormwater Management Fees 2,600,000$ 2,600,000$ 2,666,309$ 66,309$

Intergovernmental 69,500 69,500 62,537 (6,963)


Total Revenues 2,679,500 2,679,500 2,733,836 54,336

EXPENDITURES

Capital Projects

Drainage/Sewer Projects 1,216,300 1,216,300 595,106 (621,194)

Debt Service

Principal 141,700 141,700 141,707 7

Interest 37,200 37,200 37,180 (20)



OVER EXPENDITURES 1,284,300 1,284,300 1,959,843 675,543


Transfers (Out) (1,714,900) (1,714,900) (1,714,900) -









LONG-TERM CONTROL PLAN FEE FUND


Variance

Original Final Over


REVENUES

Long-Term Capital Planning Fee 770,000$ 770,000$ 792,856$ 22,856$


Total Revenues 770,000 770,000 793,648 23,648

EXPENDITURES

Capital Projects

Drainage/Sewer Projects 100,000 100,000 83,242 (16,758)






Capital 2008A 2008B

Improvements TIF Bond TIF Bond

Fund A Project Project Airport


ASSETS

Cash and Investments 9,216,304$ -$ 1,534,027$ 598,889$

Receivables

Property Tax 9,286 - - -

Other Taxes 425,151 - - -

Loan - - - -

Interest 106,909 - - 1,823

Rental Fees - - - 2,232

Other 906,546 500,000 - 6,447

Due from Other Funds 6,500,000 - - -

Due from Other Governments 459,066 1,300,000 - 165,630

Prepaid Items - - - -

Total Assets 17,623,262 1,800,000 1,534,027 775,021


None - - - -


TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 17,623,262$ 1,800,000$ 1,534,027$ 775,021$



LIABILITIES

Accounts Payable 285,759$ 458,200$ -$ 64,051$

Accrued Payroll - - - 6,055

Retainage Payable 21,208 640,339 - -

Deposits Payable - - - 9,200

Unearned Revenue 1,853,418 167,645 - 3,237

Due to Other Funds - 405,593 - -

Total Liabilities 2,160,385 1,671,777 - 82,543


Unavailable Revenue - Property Taxes 9,286 - - -

Total Deferred Inflows of Resources 9,286 - - -

Total Liablilities and Deferred Inflows of Resources 2,169,671 1,671,777 - 82,543

FUND BALANCES

Nonspendable


Restricted


Streets and Transportation - - - -

Economic Development - 128,223 1,534,027 -

Capital Projects - - - -

Unrestricted

Assigned 15,453,591 - - 692,478

Total Fund Balances 15,453,591 128,223 1,534,027 692,478

TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 17,623,262$ 1,800,000$ 1,534,027$ 775,021$



NONMAJOR CAPITAL PROJECTS FUNDS

December 31, 2012

- 112 -

2006 2008 2009

Gaming Fire Public Works Ward GO Bond GO Bond GO Bond

Tax Impact Fees Impact Fees Projects Project Project Project Total

7,706,449$ 2,526,883$ 150,133$ 2,739,972$ 459,356$ 5,168,391$ 3,847,904$ 33,948,308$

- - - 71,187 - - - 80,473

961,000 - - - - - - 1,386,151

101,024 - - 21,752 - - - 122,776

91,570 15,945 - 176 - 20,345 13,574 250,342

- - - - - - - 2,232

164,780 7,833 2,954 - - 50,374 - 1,638,934

405,593 - - - - - - 6,905,593

- - - - - - - 1,924,696

3,500 - - 12,195 - - - 15,695

9,433,916 2,550,661 153,087 2,845,282 459,356 5,239,110 3,861,478 46,275,200

- - - - - - - -

- - - - - - - -

9,433,916$ 2,550,661$ 153,087$ 2,845,282$ 459,356$ 5,239,110$ 3,861,478$ 46,275,200$

36,247$ -$ -$ 43,298$ 51,662$ 888$ -$ 940,105$

- - - - - - - 6,055

10,000 - - 4,144 53,003 - - 728,694

- - - - - - - 9,200

15,804 7,833 2,954 21,752 - - - 2,072,643

- - - - - - - 405,593

62,051 7,833 2,954 69,194 104,665 888 - 4,162,290

- - - 71,187 - - - 80,473

- - - 71,187 - - - 80,473

62,051 7,833 2,954 140,381 104,665 888 - 4,242,763

3,500 - - 12,195 - - - 15,695

- 2,542,828 - - - - - 2,542,828

- - 150,133 - - - - 150,133

- - - - - - - 1,662,250

- - - - - - 3,326,889 3,326,889

9,368,365 - - 2,692,706 354,691 5,238,222 534,589 34,334,642

9,371,865 2,542,828 150,133 2,704,901 354,691 5,238,222 3,861,478 42,032,437

9,433,916$ 2,550,661$ 153,087$ 2,845,282$ 459,356$ 5,239,110$ 3,861,478$ 46,275,200$


Capital 2008A 2008B

Improvements TIF Bond TIF Bond

Fund A Project Project Airport

REVENUES

Property Taxes 25,820$ -$ -$ -$

Other Taxes

Home Rule Sales 8,018,643 - - 591,630

Gaming Tax - - - -

Intergovernmental 72,574 10,233,737 - 32,078

Charges for Services - - - 753,227

Licenses, Fees and Permits 49,708 - - -

Impact Fees - - - -

Recovery of Costs 397,749 - - -

Donations - - - -


Other - - - -

Total Revenues 8,581,037 10,248,781 4,648 1,377,316

EXPENDITURES

Current

General Government - - - -


Streets and Transportation - - - 804,484

Culture and Recreation - - - -

Economic Development - - - -

Capital Outlay

Roadway 3,253,504 - - -

Building 558,043 - - -

Property Acquisitions 1,500,000 - - -

Park Improvements - 10,622,276 - -

Other 1,654,977 - - -

Total Expenditures 6,966,524 10,622,276 - 804,484


OVER EXPENDITURES 1,614,513 (373,495) 4,648 572,832


Transfers In - - - -

Transfers (Out) (840,300) - - -

Proceeds from the Sale of Capital Assets 978,132 - - -

Total Other Financing Sources (Uses) 137,832 - - -

NET CHANGE IN FUND BALANCES 1,752,345 (373,495) 4,648 572,832

FUND BALANCES, JANUARY 1 13,701,246 501,718 1,529,379 119,646

FUND BALANCES, DECEMBER 31 15,453,591$ 128,223$ 1,534,027$ 692,478$


COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

NONMAJOR CAPITAL PROJECTS FUNDS


- 114 -

2006 2008 2009

Gaming Fire Public Works Ward GO Bond GO Bond GO Bond

Tax Impact Fees Impact Fees Projects Project Project Project Total

-$ -$ -$ -$ -$ -$ -$ 25,820$

- - - - - - - 8,610,273

9,044,541 - - - - - - 9,044,541

- - - - - 250,000 - 10,588,389

- - - - - 50,374 - 803,601

- - - - - - - 49,708

- 30,600 - - - - - 30,600

150,000 - - 77,356 121,500 - - 746,605

- - - 37,000 - - - 37,000

14,447 630 153 2,775 2,411 12,582 15,398 85,012

16,469 - - - - - - 16,469

9,225,457 31,230 153 117,131 123,911 312,956 15,398 30,038,018

679,814 - - - - - - 679,814

515,201 - - - - - - 515,201

- - - - - - - 804,484

1,629,073 - - - - - - 1,629,073

409,952 - - - - - - 409,952

- - - 410,377 140,787 4,607,203 - 8,411,871

- - - - - - - 558,043

- - - 167,482 - - - 1,667,482

- - - - - - - 10,622,276

- - - 240,739 547,291 39,973 779,562 3,262,542

3,234,040 - - 818,598 688,078 4,647,176 779,562 28,560,738

5,991,417 31,230 153 (701,467) (564,167) (4,334,220) (764,164) 1,477,280

- - - 750,000 - - - 750,000

(5,740,700) - - - - - - (6,581,000)

2,000,000 - - - - - - 2,978,132

(3,740,700) - - 750,000 - - - (2,852,868)

2,250,717 31,230 153 48,533 (564,167) (4,334,220) (764,164) (1,375,588)

7,121,148 2,511,598 149,980 2,656,368 918,858 9,572,442 4,625,642 43,408,025

9,371,865$ 2,542,828$ 150,133$ 2,704,901$ 354,691$ 5,238,222$ 3,861,478$ 42,032,437$





CAPITAL IMPROVEMENTS FUND A


Variance

Original Final Over


REVENUES

Property Taxes 26,000$ 26,000$ 25,820$ (180)$

Other Taxes

Home Rule Sales 1,540,000 1,540,000 8,018,643 6,478,643

Intergovernmental 175,000 175,000 72,574 (102,426)

Licenses, Fees and Permits 37,000 37,000 49,708 12,708

Recovery of Costs 2,000,000 2,218,200 397,749 (1,820,451)


Other - - - -

Total Revenues 3,828,000 4,046,200 8,581,037 4,534,837

EXPENDITURES

Capital Outlay

Sewer - - - -

Roadway 3,659,000 4,995,900 3,253,504 (1,742,396)

Building 577,500 577,500 558,043 (19,457)

Property Acquisition 1,500,000 1,500,000 1,500,000 -

Other Projects 2,928,200 2,658,500 1,654,977 (1,003,523)



OVER EXPENDITURES (4,836,700) (5,685,700) 1,614,513 7,300,213


Transfer (Out) (840,300) (840,300) (840,300) -

Proceeds from the Sale of Capital Assets - - 978,132 978,132

Total Other Financing Sources (Uses) (840,300) (840,300) 137,832 978,132








2008A TIF BOND PROJECT FUND


Variance

Original Final Over


REVENUES

Intergovernmental 3,943,096$ 10,343,096$ 10,233,737$ (109,359)$

Investment Income - - 15,044 15,044

Total Revenues 3,943,096 10,343,096 10,248,781 (94,315)

EXPENDITURES

Capital Outlay

Park Improvements 4,248,206 10,648,206 10,622,276 (25,930)









2008B TIF BOND PROJECT FUND


Variance

Original Final Over


REVENUES



EXPENDITURES

Capital Outlay

Other Projects 652,300 652,300 - (652,300)

Total Expenditures 652,300 652,300 - (652,300)








AIRPORT FUND


Variance

Original Final Over


REVENUES

Other Taxes

Home Rule Sales 600,000$ 600,000$ 591,630$ (8,370)$

Intergovernmental

Federal and State Grants 1,892,500 1,892,500 32,078 (1,860,422)


Rental of Property 696,961 696,961 753,227 56,266

Investment Income 1,000 1,000 381 (619)

Total Revenues 3,190,461 3,190,461 1,377,316 (1,813,145)

EXPENDITURES

Current


Personnel Services 107,387 107,387 114,870 7,483



Capital Outlay 2,300,000 2,291,500 32,900 (2,258,600)

Total Expenditures 3,164,987 3,164,987 804,484 (2,360,503)








GAMING TAX FUND


Variance

Original Final Over


REVENUES

Other Taxes

Gaming Tax

Admissions 1,160,000$ 1,160,000$ 1,374,454$ 214,454$

Wagering 7,000,000 7,000,000 7,594,424 594,424

Off Track Betting 75,000 75,000 75,663 663

Intergovernmental - - - -



Other - - 16,469 16,469

Total Revenues 8,260,000 8,260,000 9,225,457 965,457

EXPENDITURES

Current

General Government 824,000 1,047,400 679,814 (367,586)

Public Safety 831,500 831,500 515,201 (316,299)

Streets and Transportation 212,000 212,000 - (212,000)

Culture and Recreation 1,304,000 1,424,200 1,629,073 204,873

Economic Development 1,439,000 1,201,600 409,952 (791,648)



OVER EXPENDITURES 3,649,500 3,543,300 5,991,417 2,448,117


Transfers (Out) (5,915,700) (5,915,700) (5,740,700) 175,000

Proceeds from the Sale of Capital Assets - - 2,000,000 2,000,000

Total Other Financing Sources (Uses) (5,915,700) (5,915,700) (3,740,700) 2,175,000





FIRE IMPACT FEES FUND


Variance

Original Final Over


REVENUES

Impact Fees 21,000$ 21,000$ 30,600$ 9,600$


Total Revenues 31,000 31,000 31,230 230

EXPENDITURES

Capital Outlay

Other 200,000 200,000 - (200,000)











PUBLIC WORKS IMPACT FEES FUND


Variance

Original Final Over


REVENUES

Impact Fees 2,500$ 2,500$ -$ (2,500)$


Total Revenues 2,500 2,500 153 (2,347)

EXPENDITURES

Capital Outlay

Other 50,000 50,000 - (50,000)

NET CHANGE IN FUND BALANCE (47,500)$ (47,500)$ 153 47,653$







WARD PROJECTS FUND


Variance

Original Final Over


REVENUES

Voluntary Assessments 73,075$ 73,075$ 77,356$ 4,281$

Donations - - 37,000 37,000


Total Revenues 73,075 73,075 117,131 44,056

EXPENDITURES

Capital Projects

Roadway 2,026,600 2,008,400 410,377 (1,598,023)

Property Acquisition 129,600 135,300 167,482 32,182

Special Service Areas - - - -

Other 961,000 973,500 240,739 (732,761)

Total Expenditures 3,117,200 3,117,200 818,598 (2,298,602)


OVER EXPENDITURES (3,044,125) (3,044,125) (701,467) 2,342,658


Transfers In 750,000 750,000 750,000 -

Total Other Financing Sources (Uses) 750,000 750,000 750,000 -

NET CHANGE IN FUND BALANCE (2,294,125)$ (2,294,125)$ 48,533 2,342,658$







2006 GENERAL OBLIGATION BOND PROJECT FUND


Variance

Original Final Over


REVENUES

Intergovernmental -$ -$ -$ -$



Total Revenues - - 123,911 123,911

EXPENDITURES

Capital Outlay

Roadway 405,000 203,000 140,787 (62,213)

Other Projects 345,000 547,000 547,291 291


NET CHANGE IN FUND BALANCE (750,000)$ (750,000)$ (564,167) 185,833$









Variance

Original Final Over


REVENUES

Intergovernmental -$ -$ 250,000$ 250,000$

Charges for Services - - 50,374 50,374


Total Revenues 25,000 25,000 312,956 287,956

EXPENDITURES

Capital Outlay

Building - - - -

Roadway 5,000,000 5,000,000 4,607,203 (392,797)

Other Projects 126,000 126,000 39,973 (86,027)


NET CHANGE IN FUND BALANCE (5,101,000)$ (5,101,000)$ (4,334,220) 766,780$









Variance

Original Final Over


REVENUES



EXPENDITURES

Capital Outlay

Other Projects 1,452,900 1,452,900 779,562 (673,338)


NET CHANGE IN FUND BALANCE (1,452,900)$ (1,452,900)$ (764,164) 688,736$




Ward 1 Ward 2 Ward 3 Ward 4


OF RESOURCES

ASSETS

Cash and Investments 264,887$ 151,059$ 225,944$ 111,568$

Receivable

Property Taxes 12,712 16,528 - 17,927

Loan - 15,551 - -

Interest - - - -

Prepaid items - - - -

Total Assets 277,599 183,138 225,944 129,495


None - - - -



OUTFLOWS OF RESOURCES $ 277,599 $ 183,138 $ 225,944 $ 129,495



LIABILITIES

Accounts Payable 306$ 2,100$ -$ 20,660$

Retainage Payable - - 4,144 -

Other Deferred Revenues - 15,551 - -

Total Liabilities 306 17,651 4,144 20,660


Unavailable Revenue - Property Taxes 12,712 16,528 - 17,927

Total Deferred Inflows of Resources 12,712 16,528 - 17,927

Total Liabilities and Deferred

Inflows of Resources 13,018 34,179 4,144 38,587

FUND BALANCE

Nonspendable


Unrestricted

Assigned for Capital Projects 264,581 148,959 221,800 90,908

Total Fund Balance 264,581 148,959 221,800 90,908

TOTAL LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES 277,599$ 183,138$ 225,944$ 129,495$



WARD PROJECTS FUND

December 31, 2012

- 127 -

Ward 5 Ward 6 Ward 7 Ward 8 Ward 9 Ward 10 Total

413,563$ 343,496$ 208,538$ 367,224$ 586,734$ 66,959$ 2,739,972$

- 22,906 1,114 - - - 71,187

- 6,201 - - - - 21,752

48 32 - 32 64 176

- - 12,195 - - - 12,195

413,611 372,635 221,847 367,256 586,798 66,959 2,845,282

- - - - - - -

- - - - - - -

$ 413,611 $ 372,635 $ 221,847 $ 367,256 $ 586,798 $ 66,959 $ 2,845,282

188$ 18,724$ -$ 320$ 1,000$ -$ 43,298$

- - - - - - 4,144

- 6,201 - - - - 21,752

188 24,925 - 320 1,000 - 69,194

- 22,906 1,114 - - - 71,187

- 22,906 1,114 - - - 71,187

188 47,831 1,114 320 1,000 - 140,381

- - 12,195 - - - 12,195

413,423 324,804 208,538 366,936 585,798 66,959 2,692,706

413,423 324,804 220,733 366,936 585,798 66,959 2,704,901

413,611$ 372,635$ 221,847$ 367,256$ 586,798$ 66,959$ 2,845,282$


Ward 1 Ward 2 Ward 3 Ward 4

REVENUES

Voluntary Assessments 12,762$ 19,538$ -$ 18,046$

Donations - - - -

Investment Income 268 137 228 68

Total Revenues 13,030 19,675 228 18,114

EXPENDITURES

Capital Outlay

Roadway 51,997 - 54,795 39,075

Property Acquisition - - 11,282 -

Other 9,169 62,024 18,072 1,000

Total Expenditures 61,166 62,024 84,149 40,075




Transfers In 75,000 75,000 75,000 75,000


NET CHANGE IN FUND BALANCE 26,864 32,651 (8,921) 53,039

FUND BALANCE, JANUARY 1 237,717 116,308 230,721 37,869

FUND BALANCE, DECEMBER 31 264,581$ 148,959$ 221,800$ 90,908$


COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE

WARD PROJECTS FUND


- 129 -

Ward 5 Ward 6 Ward 7 Ward 8 Ward 9 Ward 10 Total

-$ 22,715$ 1,125$ 3,170$ -$ -$ 77,356$

- 37,000 - - - - 37,000

395 386 221 352 632 88 2,775

395 60,101 1,346 3,522 632 88 117,131

13,265 - 15,391 28,961 108,916 97,977 410,377

- 156,200 - - - - 167,482

7,688 68,940 51,941 2,929 9,281 9,695 240,739

20,953 225,140 67,332 31,890 118,197 107,672 818,598

(20,558) (165,039) (65,986) (28,368) (117,565) (107,584) (701,467)

75,000 75,000 75,000 75,000 75,000 75,000 750,000

75,000 75,000 75,000 75,000 75,000 75,000 750,000

54,442 (90,039) 9,014 46,632 (42,565) (32,584) 48,533

358,981 414,843 211,719 320,304 628,363 99,543 2,656,368

413,423$ 324,804$ 220,733$ 366,936$ 585,798$ 66,959$ 2,704,901$



Motor Vehicle Parking System Fund. To account for the provision of public parking services for

a fee. All activities necessary to provide such services are accounted for in the fund including

administration, operations, maintenance, financing and related debt service and billing and

collection. Financial transactions related to the Stolp Island Parking Deck, 16 surface parking

lots and metered on-street parking are recorded in this fund.

Transportation Center Fund. To account for the provision of commuter parking services for a

fee. All activities necessary to provide such services are accounted for in the fund including

administration, operations, maintenance, financing and related debt service and billing and

collection. Financial transactions related to two surface commuter parking facilities, which are

operated by the City along the Metra railroad tracks at Illinois Routes 25 and 59, are recorded in

this fund.

Golf Operations Fund. To account for all aspects of the operations of two golf courses, the

Phillips Park Golf Course and the Fox Valley Golf Course, owned and operated by the City.


COMBINING STATEMENT OF NET POSITION


December 31, 2012

Motor Vehicle Transportation Golf

Parking System Center Operations

Fund Fund Fund Total

CURRENT ASSETS

Cash and Investments 719,059$ 1,260,896$ 110,444$ 2,090,399$

Restricted Cash and Investments - - 421,909 421,909

Receivables

Accounts, Net of Allowance 284,427 55,370 11,923 351,720

Interest 37 3,329 - 3,366

Due from Other Governments 124,486 - - 124,486

Total Current Assets 1,128,009 1,319,595 544,276 2,991,880

NONCURRENT ASSETS

Net Other Postemployment Benefits Asset 442,863 - - 442,863

Total Noncurrent Assets 442,863 - - 442,863

CAPITAL ASSETS

Nondepreciable 8,370,754 618,502 250,000 9,239,256

Depreciable (Net of Accumulated Depreciation) 10,400,684 2,398,088 3,112,864 15,911,636

Total Capital Assets 18,771,438 3,016,590 3,362,864 25,150,892

Total Assets 20,342,310 4,336,185 3,907,140 28,585,635

DEFERRED OUTFLOW OF RESOURCES

Unamortized Loss on Refunding - - 32,165 32,165

Total Deferred Outflows of Resources - - 32,165 32,165

Total Assets and Deferred Outflows of Resources 20,342,310 4,336,185 3,939,305 28,617,800

CURRENT LIABILITIES

Accounts Payable 23,969 50,419 24,765 99,153

Accrued Payroll 34,203 64,183 33,025 131,411

Accrued Interest Payable - - - -

Other Unearned Revenue 284,464 89,720 59,276 433,460


Termination Benefits 5,306 10,580 - 15,886

Bonds Payable, Due Within One Year - - 355,000 355,000

Total Current Liabilities 351,764 221,413 476,710 1,049,887



Net Other Postemployment Benefits Obligation - 71,989 557,292 629,281

Bonds Payable (Less Current Portion) - - 2,356,833 2,356,833

Total Noncurrent Liabilities 72,615 195,700 3,002,371 3,270,686

Total Liabilities 424,379 417,113 3,479,081 4,320,573

NET POSITION

Net Investment in Capital Assets 18,771,438 3,016,590 651,031 22,439,059

Restricted per Debt Ordinance - - 421,909 421,909

Unrestricted (Deficit) 1,146,493 902,482 (612,716) 1,436,259

TOTAL NET POSITION 19,917,931$ 3,919,072$ 460,224$ 24,297,227$



COMBINING STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION






OPERATING REVENUES

Charges for Services 805,289$ 2,024,724$ 1,820,143$ 4,650,156$

Other 1,939 - 403 2,342

Total Operating Revenues 807,228 2,024,724 1,820,546 4,652,498

OPERATING EXPENSES EXCLUDING

DEPRECIATION

Personnel Services 669,640 978,920 958,591 2,607,151

Materials and Supplies 84,361 178,508 451,824 714,693

Other Services and Charges 194,986 597,122 388,517 1,180,625

Miscellaneous 127,582 - - 127,582

Total Operating Expenses Excluding

Depreciation 1,076,569 1,754,550 1,798,932 4,630,051

OPERATING INCOME (LOSS)

BEFORE DEPRECIATION (269,341) 270,174 21,614 22,447

DEPRECIATION 351,271 180,211 233,768 765,250

OPERATING INCOME (LOSS) (620,612) 89,963 (212,154) (742,803)


Sales Tax 444,665 - - 444,665

Investment Income 890 2,061 658 3,609

Interest Expense - - (189,736) (189,736)

Total Nonoperating Revenues (Expenses) 445,555 2,061 (189,078) 258,538

INCOME (LOSS) BEFORE TRANSFERS

AND CONTRIBUTIONS (175,057) 92,024 (401,232) (484,265)

TRANSFERS

Transfers In - - 275,000 275,000

Total Transfers - - 275,000 275,000

CONTRIBUTIONS - - - -

CHANGE IN NET POSITION (175,057) 92,024 (126,232) (209,265)

NET POSITION, JANUARY 1 20,092,988 3,827,048 586,456 24,506,492

NET POSITION, DECEMBER 31 19,917,931$ 3,919,072$ 460,224$ 24,297,227$



COMBINING STATEMENT OF CASH FLOWS







Receipts from Customers and Users 786,609$ 2,024,224$ 1,821,459$ 4,632,292$

Payments to Suppliers (417,543) (914,556) (820,054) (2,152,153)

Payments to Employees (662,717) (974,719) (896,867) (2,534,303)

Net Cash from Operating Activities (293,651) 134,949 104,538 (54,164)



Sales Taxes 444,665 - - 444,665

Transfers In - - 275,000 275,000


Financing Activities 444,665 - 275,000 719,665

CASH FLOWS FROM CAPITAL AND RELATED


Property, Plant and Equipment

Acquired or Constructed - (119,736) - (119,736)

Bond Proceeds - - 2,714,281 2,714,281

Principal Paid on Bonds - - (3,245,000) (3,245,000)

Bond Interest and Fiscal Agents' Fees - - (291,090) (291,090)

Net Cash from Capital and Related

Financing Activities - (119,736) (821,809) (941,545)



on Investment Securities - - - -

Purchase of Investment Securities - (485,695) - (485,695)

Interest on Investments 1,677 2,061 658 4,396

Net Cash from Investing Activities 1,677 (483,634) 658 (481,299)

NET INCREASE (DECREASE) IN CASH

AND CASH EQUIVALENTS 152,691 (468,421) (441,613) (757,343)

CASH AND CASH EQUIVALENTS, JANUARY 1 261,165 640,698 973,966 1,875,829

CASH AND CASH EQUIVALENTS, DECEMBER 31 413,856$ 172,277$ 532,353$ 1,118,486$



COMBINING STATEMENT OF CASH FLOWS (Continued)









Operating Income (Loss) (620,612)$ 89,963$ (212,154)$ (742,803)$



Depreciation 351,271 180,211 233,768 765,250


Accounts Receivable (12,193) (778) (78) (13,049)


Accounts Payable (10,614) (138,926) 20,287 (129,253)

Accrued Payroll (1,683) 3,648 (1,569) 396

Unearned Revenue (8,426) 278 990 (7,158)

Compensated Absences (8,654) (4,998) 20,011 6,359

Termination Benefits - (16,661) - (16,661)

Net Other Postemployment Benefits

Obligation/Asset 17,260 22,212 43,283 82,755

NET CASH FROM OPERATING ACTIVITIES (293,651)$ 134,949$ 104,538$ (54,164)$


Cash and Cash Equivalents 413,856$ 172,277$ 532,353$ 1,118,486$

Investments 305,203 1,088,619 - 1,393,822

TOTAL CASH AND INVESTMENTS 719,059$ 1,260,896$ 532,353$ 2,512,308$



SCHEDULE OF REVENUES AND EXPENDITURES -

BUDGET AND ACTUAL

MOTOR VEHICLE PARKING SYSTEM FUND


Variance

Original Final Over


REVENUES

Other Taxes

Sales 450,000$ 450,000$ 444,665$ (5,335)$


Fines 421,000 421,000 424,732 3,732

Fees 328,200 328,200 333,913 5,713

Commercial Space Rents 46,400 46,400 46,644 244


Other - - 1,939 1,939

Total Revenues 1,250,600 1,250,600 1,252,783 2,183

EXPENDITURES

Enforcement Division

Personnel Services 187,456 187,456 170,005 (17,451)

Materials and Supplies 2,000 2,000 974 (1,026)

Other Services and Charges 26,900 26,900 26,378 (522)

Total Enforcement Division 216,356 216,356 197,357 (18,999)

Revenue and Collection Division

Personnel Services 197,386 197,386 197,899 513



Total Revenue and Collection Division 299,636 299,636 255,149 (44,487)

Maintenance Division




Capital Outlay 130,500 130,500 127,582 (2,918)

Total Maintenance Division 749,633 749,633 624,063 (125,570)


NET INCOME (LOSS) - BUDGET BASIS (15,025)$ (15,025)$ 176,214$ 191,239$




BUDGET AND ACTUAL

TRANSPORTATION CENTER FUND


Variance

Original Final Over


REVENUES


Parking Fees 1,649,600$ 1,649,600$ 1,861,737$ 212,137$

Fines 125,000 125,000 131,000 6,000

Commercial Space Rents 39,200 39,200 31,987 (7,213)


Total Revenues 1,818,800 1,818,800 2,026,785 207,985

EXPENDITURES

Transportation Center - Route 25




Total Transportation Center - Route 25 1,035,940 1,077,940 973,732 (104,208)

Transportation Center - Route 59




Capital Outlay 210,000 228,000 46,279 (181,721)

Total Transportation Center - Route 59 1,051,303 1,059,303 780,818 (278,485)


NET INCOME (LOSS) - BUDGET BASIS (268,443)$ (318,443)$ 272,235$ 590,678$




BUDGET AND ACTUAL

GOLF OPERATIONS FUND


Variance

Original Final Over


REVENUES


Fees 1,891,400$ 1,891,400$ 1,814,158$ (77,242)$

Rental Income 8,600 8,600 5,985 (2,615)


Other - - 403 403

Total Revenues 1,900,000 1,900,000 1,821,204 (78,796)

EXPENDITURES

Phillips Park




Total Phillips Park 1,081,018 1,093,618 1,044,057 (49,561)

Fox Valley




Total Fox Valley 721,380 708,780 754,875 46,095

Debt Service

Interest 187,800 187,800 187,786 (14)

Principal 290,000 290,000 540,000 250,000

Other Charges 1,000 1,000 1,950 950

Total Debt Service 478,800 478,800 729,736 250,936

Total Expenditures 2,281,198 2,281,198 2,528,668 247,470

INCOME (LOSS) BEFORE TRANSFERS (381,198) (381,198) (707,464) (326,266)

TRANSFERS

Transfers In 450,000 450,000 275,000 (175,000)

Total Transfers 450,000 450,000 275,000 (175,000)

NET INCOME (LOSS) - BUDGET BASIS 68,802$ 68,802$ (432,464)$ (501,266)$



Property and Casualty Insurance Fund. To account for the City’s property, general liability and

workers’ compensation insurance programs. The general liability and workers’ compensation

programs are essentially self-insured; however, commercial excess insurance is in place.

Financing is provided through charges to the City’s operating divisions and departments.

Employee Health Insurance Fund. To account for the City’s employee health insurance program.

The City offers two medical plans and a dental plan to its employees. Financing is provided

through charges to the City’s operating divisions and departments as well as employee

contributions.

Employee Compensated Benefits Fund. To account for the City’s accrued liabilities for

employee severance and sick leave. Financing is provided through charges to the City’s

operating divisions and departments.


COMBINING STATEMENT OF NET POSITION


December 31, 2012

Property and Employee Employee

Casualty Health Compensated

Insurance Insurance Benefits


CURRENT ASSETS


Receivables

Interest 57,910 - 114,509 172,419

Miscellaneous - 8,749 - 8,749

Due from Other Funds 1,700,000 - - 1,700,000

Prepaid Items 95,707 - - 95,707

Total Current Assets 9,201,577 4,485,455 14,102,364 27,789,396

Total Assets 9,201,577 4,485,455 14,102,364 27,789,396

CURRENT LIABILITIES

Accounts Payable 23,774 103,197 - 126,971

Accrued Payroll 13,526 - 8,293 21,819

Due to Other Funds - 1,600,000 100,000 1,700,000

Claims Payable - 735,216 - 735,216

Compensated Absences - - 690,448 690,448

Total Current Liabilities 37,300 2,438,413 798,741 3,274,454


Compensated Absences - - 13,118,516 13,118,516

Claims Payable 7,526,598 - - 7,526,598

Total Noncurrent Liabilities 7,526,598 - 13,118,516 20,645,114


NET POSITION

Unrestricted 1,637,679 2,047,042 185,107 3,869,828

TOTAL NET POSITION 1,637,679$ 2,047,042$ 185,107$ 3,869,828$



COMBINING STATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITION







OPERATING REVENUES

Charges for Services 3,576,269$ 18,941,485$ 1,200,000$ 23,717,754$

Total Operating Revenues 3,576,269 18,941,485 1,200,000 23,717,754

OPERATING EXPENSES

Other Services and Charges 5,873,896 17,412,096 1,201,218 24,487,210

Total Operating Expenses 5,873,896 17,412,096 1,201,218 24,487,210

OPERATING INCOME (LOSS) (2,297,627) 1,529,389 (1,218) (769,456)


Investment Income (3,926) 6,024 18,896 20,994

Total Nonoperating Revenues (Expenses) (3,926) 6,024 18,896 20,994

INCOME (LOSS) BEFORE TRANSFERS (2,301,553) 1,535,413 17,678 (748,462)

TRANSFERS

Transfers In 1,700,000 - - 1,700,000

Transfers (Out) - (1,600,000) (100,000) (1,700,000)

Total Transfers 1,700,000 (1,600,000) (100,000) -

CHANGE IN NET POSITION (601,553) (64,587) (82,322) (748,462)

NET POSITION, JANUARY 1 2,239,232 2,111,629 267,429 4,618,290

NET POSITION, DECEMBER 31 1,637,679$ 2,047,042$ 185,107$ 3,869,828$



COMBINING STATEMENT OF CASH FLOWS








Receipts from Customers and Users -$ 3,556,741$ -$ 3,556,741$

Receipts from Interfund Service Transactions 3,576,269 15,400,000 1,200,000 20,176,269

Payments to Suppliers (5,417,288) (17,502,768) - (22,920,056)

Payments to Employees/Retirees - - (766,449) (766,449)

Net Cash from Operating Activities (1,841,019) 1,453,973 433,551 46,505



None - - - -


Financing Activities - - - -

CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES

None - - - -

Net Cash from Capital and Related

Financing Activities - - - -



on Investment Securities 3,000,000 2,000,000 6,625,000 11,625,000

Purchase of Investment Securities (4,034,417) (1,999,487) (8,134,937) (14,168,841)

Interest on Investments 180,872 106,508 340,305 627,685

Net Cash from Investing Activities (853,545) 107,021 (1,169,632) (1,916,156)

NET INCREASE (DECREASE) IN

CASH AND CASH EQUIVALENTS (2,694,564) 1,560,994 (736,081) (1,869,651)

CASH AND CASH EQUIVALENTS, JANUARY 1 3,996,303 916,205 1,178,897 6,091,405

CASH AND CASH EQUIVALENTS, DECEMBER 31 1,301,739$ 2,477,199$ 442,816$ 4,221,754$









Operating Income (Loss) (2,297,627)$ 1,529,389$ (1,218)$ (769,456)$




Miscellaneous Receivables - 15,256 - 15,256

Prepaid Items 31,902 - - 31,902


Accounts Payable (26,608) (77,274) - (103,882)

Accrued Payroll (7,493) - 7,866 373

Compensated Absences - - 426,903 426,903

Claims Payable 458,807 (13,398) - 445,409

NET CASH FROM OPERATING ACTIVITIES (1,841,019)$ 1,453,973$ 433,551$ 46,505$


Cash and Cash Equivalents 1,301,739$ 2,477,199$ 442,816$ 4,221,754$

Investments 6,046,221 1,999,507 13,545,039 21,590,767

CASH AND INVESTMENTS 7,347,960$ 4,476,706$ 13,987,855$ 25,812,521$

NONCASH TRANSACTIONS

Unrealized Gain/Loss on Investments (199,786)$ (60,817)$ (351,484)$ (612,087)$

TOTAL NONCASH TRANSACTIONS (199,786)$ (60,817)$ (351,484)$ (612,087)$


COMBINING STATEMENT OF CASH FLOWS (Continued)





SCHEDULE OF REVENUES, EXPENSES AND

CHANGES IN NET POSITION - BUDGET AND ACTUAL

PROPERTY AND CASUALTY INSURANCE FUND


Variance

Original Final Over


REVENUES

Charges for Services 3,572,000$ 3,572,000$ 3,576,269$ 4,269$

Total Revenues 3,572,000 3,572,000 3,576,269 4,269

EXPENSES


Total Expenses 4,172,000 5,922,000 5,873,896 (48,104)

OPERATING INCOME (600,000) (2,350,000) (2,297,627) 52,373


Investment Income 50,000 50,000 (3,926) (53,926)

Total Nonoperating Revenues (Expenses) 50,000 50,000 (3,926) (53,926)

INCOME (LOSS) BEFORE TRANSFERS (550,000) (2,300,000) (2,301,553) (1,553)

TRANSFERS

Transfers In - - 1,700,000 1,700,000

Total Transfers - - 1,700,000 1,700,000

CHANGE IN NET POSITION (550,000)$ (2,300,000)$ (601,553) 1,698,447$

NET POSITION, JANUARY 1 2,239,232

NET POSITION, DECEMBER 31 1,637,679$





EMPLOYEE HEALTH INSURANCE FUND


Variance

Original Final Over


REVENUES

Charges for Services 19,159,526$ 19,159,526$ 18,941,485$ (218,041)$

Total Revenues 19,159,526 19,159,526 18,941,485 (218,041)

EXPENSES

Other Services and Charges 19,875,009 19,875,009 17,412,096 (2,462,913)

Total Expenses 19,875,009 19,875,009 17,412,096 (2,462,913)

OPERATING INCOME (LOSS) (715,483) (715,483) 1,529,389 2,244,872



Total Nonoperating Revenues (Expenses) 25,000 25,000 6,024 (18,976)

INCOME (LOSS) BEFORE TRANSFERS (690,483) (690,483) 1,535,413 2,225,896

TRANSFERS

Transfers (Out) - - (1,600,000) (1,600,000)

Total Transfers - - (1,600,000) (1,600,000)

CHANGE IN NET POSITION (690,483)$ (690,483)$ (64,587) 625,896$

NET POSITION, JANUARY 1 2,111,629

NET POSITION, DECEMBER 31 2,047,042$


Variance

Original Final Over


REVENUES

Charges for Services 1,200,000$ 1,200,000$ 1,200,000$ -$

Total Revenues 1,200,000 1,200,000 1,200,000 -

EXPENSES


Total Expenses 1,300,000 1,305,000 1,201,218 (103,782)

OPERATING INCOME (LOSS) (100,000) (105,000) (1,218) 103,782



Total Nonoperating Revenues (Expenses) 100,000 100,000 18,896 (81,104)

INCOME BEFORE TRANSFERS - (5,000) 17,678 22,678

TRANSFERS

Transfers (Out) - - (100,000) (100,000)

Total Transfers - - (100,000) (100,000)

CHANGE IN NET POSITION -$ (5,000)$ (82,322) (77,322)$

NET POSITION, JANUARY 1 267,429

NET POSITION, DECEMBER 31 185,107$




EMPLOYEE COMPENSATED BENEFITS FUND



FIDUCIARY FUNDS

FIDUCIARY FUNDS

Police Pension Fund. To account for the resources necessary to provide retirement and disability

benefits to sworn personnel of the Aurora Police Department. Revenues are provided by city

contributions (made possible primarily by a property tax levy), employee payroll withholdings

and investment income.

Firefighters’ Pension Fund. To account for the resources necessary to provide retirement and

disability benefits to sworn personnel of the Aurora Fire Department. Revenues are provided by

city contributions (made possible primarily by a property tax levy), employee payroll

withholdings and investment income.

Retiree Health Insurance Trust Fund. To account for the City’s retiree health insurance program.

The City offers a medical plan and a dental plan to its eligible retirees. Financing is provided

through charges to the City’s operating divisions and departments, retiree contributions and

investment income.

Section 125 Medical Fund. To account for employee payroll deductions pursuant to Section 125

of the Internal Revenue Code for the reimbursement of qualified medical expenses.

Section 125 Dependent Care Fund. To account for employee payroll deductions pursuant to

Section 125 of the Internal Revenue Code for the reimbursement of qualified dependent care

expenses.

CN/EJE Coalition Fund. To account for the assets of The Regional Answer to the Canadian

National (TRAC). TRAC is a coalition of communities who are cooperating to ensure that the

quality of life for their residents is not adversely affected by the Canadian National Railway’s

acquisition of the 198-mile stretch of the Elgin, Joliet and Eastern Railway that runs from

Waukegan, Illinois to Gary, Indiana.


COMBINING STATEMENT OF PLAN NET POSITION

PENSION AND OTHER POSTEMPLOYMENT BENEFIT TRUST FUNDS

December 31, 2012

Other

Postemployment

Benefit

Police Firefighters' Retiree Health

Pension Pension Insurance

Fund Fund Trust Fund Total

ASSETS

Cash and Short-Term Investments 25,768$ 24,921$ 174,232$ 224,921$

Investments, at Fair Value

Money Market Mutual Funds 3,855,471 3,054,323 843,665 7,753,459

Illinois Funds 1,511,712 1,579,638 702,847 3,794,197

Negotiable Certificates of Deposit 5,000,000 5,000,000 49,965 10,049,965

U.S. Treasury Securities 29,259,233 22,886,220 1,965,652 54,111,105

U.S. Agency Securities 5,635,839 5,387,591 2,913,287 13,936,717

Corporate Bonds 20,025,553 16,294,880 4,975,150 41,295,583

Municipal Bonds - - 59,180 59,180

Foreign Bonds 128,597 107,164 - 235,761

Corporate Equity Securities 34,741,258 27,497,835 11,073,336 73,312,429

Equity Mutual Funds 43,762,187 34,682,084 4,479,756 82,924,027

Receivables (Net, Where Applicable,

of Allowances for Uncollectibles)

Accounts Receivable - - 14,828 14,828

Due from General Fund 13,247 12,174 - 25,421

Accrued Interest 893,181 792,365 78,140 1,763,686

Prepaid Expenses 4,679 4,679 3,120 12,478

Total Assets 144,856,725 117,323,874 27,333,158 289,513,757

LIABILITIES

Accounts Payable 73,283 54,987 47,258 175,528

Benefits Payable - - 549,995 549,995

Total Liabilities 73,283 54,987 597,253 725,523

NET POSITION HELD IN TRUST FOR

PENSION/OPEB BENEFITS 144,783,442$ 117,268,887$ 26,735,905$ 288,788,234$

Pension Trust



COMBINING STATEMENT OF CHANGES IN PLAN NET POSITION

PENSION AND OTHER POSTEMPLOYMENT BENEFIT TRUST FUNDS


Other

Postemployment

Benefit

Police Firefighters' Retiree Health

Pension Pension Insurance Trust Total

ADDITIONS

Contributions

Employer Contributions 8,270,619$ 7,380,005$ 5,380,735$ 21,031,359$

Employee/Retiree Contributions 2,904,235 1,838,447 2,088,814 6,831,496

Total Contributions 11,174,854 9,218,452 7,469,549 27,862,855

Investment Income


Value of Investments 9,602,501 7,597,133 2,109,904 19,309,538

Interest 3,860,574 3,055,761 718,158 7,634,493

Total Investment Income 13,463,075 10,652,894 2,828,062 26,944,031

Less Investment Expense (454,079) (375,563) (155,975) (985,617)

Net Investment Income 13,008,996 10,277,331 2,672,087 25,958,414

Total Additions 24,183,850 19,495,783 10,141,636 53,821,269

DEDUCTIONS

Pension Benefits 11,182,448 8,901,828 - 20,084,276

Health Insurance Benefits - - 7,593,190 7,593,190

Administrative Expenses 60,865 46,273 12,315 119,453

Total Deductions 11,243,313 8,948,101 7,605,505 27,796,919

NET INCREASE 12,940,537 10,547,682 2,536,131 26,024,350


FOR PENSION/OPEB BENEFITS

January 1 131,842,905 106,721,205 24,199,774 262,763,884

December 31 144,783,442$ 117,268,887$ 26,735,905$ 288,788,234$

Pension Trust



SCHEDULE OF CHANGES IN PLAN NET POSITION -

BUDGET AND ACTUAL

POLICE PENSION FUND


Variance

Original Final Over


ADDITIONS

Contributions

Employer Contributions 8,254,300$ 8,254,300$ 8,270,619$ 16,319$

Employee Contributions 2,750,000 2,750,000 2,904,235 154,235

Total Contributions 11,004,300 11,004,300 11,174,854 170,554

Investment Income


Value of Investments - - 9,602,501 9,602,501

Interest 7,000,000 7,000,000 3,860,574 (3,139,426)


Less Investment Expense (600,000) (600,000) (454,079) 145,921


Total Additions 17,404,300 17,404,300 24,183,850 6,779,550

DEDUCTIONS

Pension Benefits 12,080,000 12,080,000 11,182,448 (897,552)

Administrative Expenses 86,300 86,300 60,865 (25,435)

Total Deductions 12,166,300 12,166,300 11,243,313 (922,987)

NET INCREASE 5,238,000$ 5,238,000$ 12,940,537 7,702,537$


FOR PENSION BENEFITS

January 1 131,842,905

December 31 144,783,442$




BUDGET AND ACTUAL



Variance

Original Final Over


ADDITIONS

Contributions

Employer Contributions 7,366,600$ 7,366,600$ 7,380,005$ 13,405$

Employee Contributions 1,850,000 1,850,000 1,838,447 (11,553)

Total Contributions 9,216,600 9,216,600 9,218,452 1,852

Investment Income



Interest 6,000,000 6,000,000 3,055,761 (2,944,239)


Less Investment Expense (450,000) (450,000) (375,563) 74,437


Total Additions 14,766,600 14,766,600 19,495,783 4,729,183

DEDUCTIONS

Pension Benefits 10,140,000 10,140,000 8,901,828 (1,238,172)


Total Deductions 10,220,100 10,220,100 8,948,101 (1,271,999)

NET INCREASE 4,546,500$ 4,546,500$ 10,547,682 6,001,182$


FOR PENSION BENEFITS

January 1 106,721,205

December 31 117,268,887$




BUDGET AND ACTUAL

RETIREE HEALTH INSURANCE TRUST FUND


Variance

Original Final Over


ADDITIONS

Contributions

Employer Contributions 5,380,735$ 5,380,735$ 5,380,735$ -$

Retiree Contributions 2,170,218 2,170,218 2,088,814 (81,404)

Total Contributions 7,550,953 7,550,953 7,469,549 (81,404)

Investment Income



Interest 2,000,000 2,000,000 718,158 (1,281,842)

Total Investment Income 2,000,000 2,000,000 2,828,062 828,062

Less Investment Expense (123,000) (123,000) (155,975) (32,975)

Net Investment Income 1,877,000 1,877,000 2,672,087 795,087

Total Additions 9,427,953 9,427,953 10,141,636 713,683

DEDUCTIONS

Health Insurance Benefits 8,623,183 8,623,183 7,593,190 (1,029,993)


Total Deductions 8,652,183 8,652,183 7,605,505 (1,046,678)

NET INCREASE 775,770$ 775,770$ 2,536,131 1,760,361$


FOR OPEB BENEFITS

January 1 24,199,774

December 31 26,735,905$



COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS


Balances Balances

January 1 Additions Deductions December 31

ASSETS


TOTAL ASSETS 29,242$ 263,574$ 253,320$ 39,496$

LIABILITIES

Due to Others 29,242$ 263,574$ 253,320$ 39,496$

TOTAL LIABILITIES 29,242$ 263,574$ 253,320$ 39,496$

SECTION 125 MEDICAL FUND

ASSETS


TOTAL ASSETS 25,367$ 236,139$ 228,384$ 33,122$

LIABILITIES

Due to Others 25,367$ 236,139$ 228,384$ 33,122$


ASSETS


TOTAL ASSETS 3,875$ 27,435$ 24,936$ 6,374$

LIABILITIES

Due to Others 3,875$ 27,435$ 24,936$ 6,374$


ALL FUNDS

SECTION 125 DEPENDENT CARE FUND


SUPPLEMENTARY FINANCIAL INFORMATION


GENERAL FUND


Variance

Original Final Over


PROPERTY TAXES 60,376,800$ 60,376,800$ 60,148,522$ (228,278)$

OTHER TAXES

Sales 35,421,000 35,421,000 29,529,923 (5,891,077)

State Income 14,447,000 14,447,000 17,388,869 2,941,869

Replacement 2,911,000 2,911,000 3,385,646 474,646

Utility 10,250,000 10,250,000 10,163,505 (86,495)

Food and Beverage 3,600,000 3,600,000 4,002,735 402,735

Hotel/Motel 400,000 400,000 463,512 63,512

Total Other Taxes 67,029,000 67,029,000 64,934,190 (2,094,810)

INTERGOVERNMENTAL

State and Federal Grants 640,926 751,426 556,651 (194,775)

Election Commission 445,000 445,000 418,433 (26,567)

TIF Surplus Distribution - - 199,922 199,922

Total Intergovernmental 1,085,926 1,196,426 1,175,006 (21,420)

LICENSES, FEES AND PERMITS

Building Permits and Fees 2,011,000 2,011,000 2,738,757 727,757

Liquor 1,220,000 1,220,000 1,256,227 36,227

Franchise 1,750,000 1,750,000 1,991,394 241,394

Apartment License Fees 182,000 182,000 380,309 198,309

Amusement 67,500 67,500 27,675 (39,825)

Contractor Licenses 164,300 164,300 158,801 (5,499)

Other 479,500 479,500 421,690 (57,810)

Total Licenses, Fees and Permits 5,874,300 5,874,300 6,974,853 1,100,553

CHARGES FOR SERVICES

Animal Control 70,500 70,500 72,543 2,043

Civic Activity Fees 7,500 7,500 20,737 13,237

Ambulance Service 2,146,000 2,146,000 2,156,169 10,169

Inspections 41,100 41,100 57,043 15,943

Police Services 906,800 906,800 1,312,123 405,323

Fire Services 106,000 106,000 134,199 28,199

Public Works Fees 110,100 110,100 208,236 98,136

Recovery of Costs 343,600 343,600 433,773 90,173

Other 40,600 40,600 39,437 (1,163)

Total Charges for Services 3,772,200 3,772,200 4,434,260 662,060

SCHEDULE OF REVENUES - BUDGET AND ACTUAL

(This schedule is continued on the following page.)- 151 -


SCHEDULE OF REVENUES - BUDGET AND ACTUAL (Continued)

GENERAL FUND


Variance

Original Final Over


FINES 1,953,600$ 1,953,600$ 2,535,273$ 581,673$

INVESTMENT INCOME 256,500 256,500 20,583 (235,917)

OTHER REVENUE

Rental of Property 163,801 163,801 177,389 13,588

Contributions and Donations 400 400 100 (300)

Sale of Assets 40,000 40,000 88,660 48,660

Miscellaneous - - 6,546 6,546

Total Other Revenue 204,201 204,201 272,695 68,494

TOTAL REVENUES 140,552,527$ 140,663,027$ 140,495,382$ (167,645)$


SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL

GENERAL FUND


Variance

Original Final Over


GENERAL GOVERNMENT

Mayor's Office

Personnel Services 769,324$ 815,424$ 803,929$ (11,495)$



Total Mayor's Office 941,024 987,124 962,361 (24,763)

Less Costs Charged to

Other Departments and Funds 34,198 34,198 34,198 -

Net Mayor's Office 906,826 952,926 928,163 (24,763)

City Clerk's Office




Total City Clerk's Office 415,280 415,280 407,514 (7,766)



Net City Clerk's Office 399,484 399,484 391,718 (7,766)

Aldermen's Office




Total Aldermen's Office 947,250 982,050 925,021 (57,029)

Law Department




Total Law Department 930,291 981,291 989,033 7,742



Net Law Department 894,369 945,369 953,111 7,742


(By Function)

(This schedule is continued on the following pages.)- 153 -


SCHEDULE OF DETAILED EXPENDITURES - BUDGET AND ACTUAL (Continued)

GENERAL FUND

(By Function)


Variance

Original Final Over


GENERAL GOVERNMENT (Continued)

Human Resources Department

Personnel Services 574,335$ 570,935$ 576,895$ 5,960$



Total Human Resources Department 1,029,735 1,004,635 964,277 (40,358)



Net Human Resources Department 989,607 964,507 924,149 (40,358)

Boards and Commissions



Total Boards and Commissions 88,981 88,981 55,326 (33,655)

Civil Service Commission


Materials and Supplies 1,100 1,100 430 (670)


Total Civil Service Commission 223,070 233,070 159,258 (73,812)



Net Civil Service Commission 214,374 224,374 150,562 (73,812)

Election Commission

Other Services and Charges 974,041 974,041 974,041 -

Total Election Commission 974,041 974,041 974,041 -

Community Services Administration




Total Community Services

Administration 311,833 324,633 333,050 8,417




GENERAL FUND

(By Function)


Variance

Original Final Over



Public Information




Total Public Information 674,044 680,544 562,410 (118,134)



Net Public Information 647,740 654,240 536,106 (118,134)

Customer Service




Total Customer Service 474,311 474,311 485,263 10,952



Net Customer Service 455,133 455,133 466,085 10,952

Development Services Administration


Materials and Supplies 1,300 800 90 (710)


Total Development Services

Administration 414,690 403,290 334,950 (68,340)

Planning and Zoning




Total Planning and Zoning 866,675 858,875 905,167 46,292



Net Planning and Zoning 832,405 824,605 870,897 46,292




GENERAL FUND

(By Function)


Variance

Original Final Over



Finance Administration




Total Finance Administration 503,494 611,494 650,087 38,593



Net Finance Administration 483,178 591,178 629,771 38,593

Accounting

Personnel Services 1,190,621 1,190,621 1,194,458 3,837

Materials and Supplies 12,250 18,850 18,116 (734)


Total Accounting 1,315,671 1,319,971 1,285,142 (34,829)



Net Accounting 1,269,197 1,273,497 1,238,668 (34,829)

Budgeting




Total Budgeting 286,424 282,124 263,226 (18,898)



Net Budgeting 275,672 271,372 252,474 (18,898)

Revenue and Collection




Total Revenue and Collection 741,077 741,077 792,126 51,049



Net Revenue and Collection 714,241 714,241 765,290 51,049




GENERAL FUND

(By Function)


Variance

Original Final Over



Purchasing




Total Purchasing 426,042 426,042 388,414 (37,628)



Net Purchasing 408,420 408,420 370,792 (37,628)

Administrative Services Administration



Total Administrative Services Administration 294,427 294,427 280,178 (14,249)



Net Administrative Services Administration 284,055 284,055 269,806 (14,249)

Central Services




Total Central Services 956,408 922,208 987,614 65,406



Net Central Services 917,510 883,310 948,716 65,406

Elmslie Building Maintenance




Total Elmslie Building Maintenance 156,182 147,082 150,325 3,243




GENERAL FUND

(By Function)


Variance

Original Final Over



Community Center Maintenance




Total Community Center Maintenance 289,724 258,424 209,138 (49,286)

Elks Building Maintenance


Total Elks Building Maintenance 20,700 21,300 18,267 (3,033)

Alschuler Building Maintenance

Materials and Supplies 4,200 - - -


Total Alschuler Building Maintenance 28,100 16,300 15,777 (523)

Information Technology Administration




Total Information Technology Administration 315,218 373,718 386,565 12,847



Net Information Technology Administration 303,498 361,998 374,845 12,847

Communications




Capital Outlay 246,800 184,200 13,777 (170,423)

Total Communications 725,426 666,926 473,604 (193,322)



Net Communications 698,210 639,710 446,388 (193,322)




GENERAL FUND

(By Function)


Variance

Original Final Over



Management Information Systems

Personnel Services 1,343,503$ 1,343,503$ 1,303,003$ (40,500)$


Other Services and Charges 1,131,000 1,000,000 980,123 (19,877)

Total Management Information Systems 2,736,003 2,736,003 2,610,369 (125,634)



Net Management Information Systems 2,630,069 2,630,069 2,504,435 (125,634)

Equipment Services


Materials and Supplies 2,089,200 2,500,600 2,488,709 (11,891)


Total Equipment Services 4,638,313 5,138,313 5,137,447 (866)


Other Departments and Funds 4,559,600 4,559,600 5,027,537 467,937

Net Equipment Services 78,713 578,713 109,910 (468,803)

Operations Administration


Materials and Supplies 600 600 751 151


Total Operations Administration 461,456 461,456 498,045 36,589

General Government Miscellaneous


Total General Government Miscellaneous 192,000 192,000 192,000 -

Total General Government 17,287,658 17,926,758 16,837,826 (1,088,932)

PUBLIC SAFETY

Fire Department




Total Fire Department 36,867,833 37,649,933 37,648,906 (1,027)




GENERAL FUND

(By Function)


Variance

Original Final Over


PUBLIC SAFETY (Continued)

Police Department

Personnel Services 52,034,325$ 52,044,425$ 52,617,372$ 572,947$

Materials and Supplies 1,513,950 1,422,950 955,259 (467,691)

Other Services and Charges 2,405,250 2,563,650 2,628,530 64,880

Total Police Department 55,953,525 56,031,025 56,201,161 170,136

Police 911 Center

Personnel Services 4,075,586 4,075,586 3,926,922 (148,664)



Total Police 911 Center 4,104,886 4,104,886 3,944,890 (159,996)

Emergency Management Services




Total Emergency Management Services 276,749 276,749 246,911 (29,838)

Police Headquarters Maintenance




Total Police Headquarters Maintenance 608,018 706,818 709,072 2,254

Police Technical Services




Total Police Technical Services 1,853,607 1,853,607 1,516,916 (336,691)

Total Public Safety 99,664,618 100,623,018 100,267,856 (355,162)

STREETS AND TRANSPORTATION

Maintenance Services




Total Maintenance Services 933,622 936,422 908,477 (27,945)




GENERAL FUND

(By Function)


Variance

Original Final Over


STREETS AND TRANSPORTATION (Continued)

Public Works




Total Public Works 3,463,346 3,463,346 3,252,755 (210,591)



Net Public Works 1,826,402 1,826,402 1,607,137 (219,265)

Electrical Maintenance




Total Electrical Maintenance 2,215,362 2,215,362 1,982,589 (232,773)

Street Maintenance




Total Street Maintenance 6,678,310 6,649,310 5,942,724 (706,586)

Total Streets and Transportation 11,653,696 11,627,496 10,440,927 (1,186,569)

HEALTH AND WELFARE

Building and Permits




Total Building and Permits 2,034,738 2,034,738 2,041,768 7,030

Property Standards




Total Property Standards 3,321,960 3,321,960 3,050,942 (271,018)




GENERAL FUND

(By Function)


Variance

Original Final Over


HEALTH AND WELFARE (Continued)

Neighborhood Redevelopment




Total Neighborhood Redevelopment 600,776 610,376 484,611 (125,765)


Other Departments and Funds 602,335 602,335 397,864 (204,471)

Net Neighborhood Redevelopment (1,559) 8,041 86,747 78,706

Animal Control




Total Animal Control 1,017,275 1,017,275 1,078,458 61,183

Total Health and Welfare 6,372,414 6,382,014 6,257,915 (124,099)

CULTURE AND RECREATION

Special Events Office


Materials and Supplies (1,900) (4,450) (2,261) 2,189


Total Special Events Office 239,025 245,325 246,070 745

Public Arts

Personnel Services 103,154 101,154 100,964 (190)



Total Public Arts 177,904 176,404 158,421 (17,983)

G.A.R. Museum

Materials and Supplies 3,500 3,500 - (3,500)


Total G.A.R. Museum 18,400 16,400 7,629 (8,771)




GENERAL FUND

(By Function)


Variance

Original Final Over


CULTURE AND RECREATION (Continued)

Parks and Recreation




Total Parks and Recreation 2,396,643 2,425,643 2,264,780 (160,863)

Phillips Park Zoo




Total Phillips Park Zoo 750,218 750,218 700,911 (49,307)

Youth and Senior Services




Total Youth and Senior Services 689,948 658,248 622,711 (35,537)

Youth Grant Programs




Total Youth Grant Programs 92,502 92,502 59,586 (32,916)

Total Culture and Recreation 4,364,640 4,364,740 4,060,108 (304,632)

ECONOMIC DEVELOPMENT

Economic Development Commission




Total Economic Development 2,285,894 2,305,094 2,102,717 (202,377)

TOTAL EXPENDITURES 141,628,920$ 143,229,120$ 139,967,349$ (3,261,771)$



SCHEDULE OF DETAILED EXPENDITURES - ADMINISTRATIVE SERVICES -

GENERAL FUND


Variance

Original Final Over


ADMINISTRATIVE SERVICES

Administration



Total Administration 294,427 294,427 280,178 (14,249)

Central Services




Total Central Services 956,408 922,208 987,614 65,406



Net Central Services 917,510 883,310 948,716 65,406

Elmslie Building Maintenance




Total Elmslie Building Maintenance 156,182 147,082 150,325 3,243

Community Center Maintenance




Total Community Center Maintenance 289,724 258,424 209,138 (49,286)

Elks Building Maintenance


Total Elks Building Maintenance 20,700 21,300 18,267 (3,033)

Alschuler Building Maintenance

Materials and Supplies 4,200 - - -


Total Alschuler Building Maintenance 28,100 16,300 15,777 (523)

BUDGET AND ACTUAL




GENERAL FUND


Variance

Original Final Over


ADMINISTRATIVE SERVICES (Continued)

Information Technology Administration




Total Information Technology Administration 315,218 373,718 386,565 12,847



Net Information Technology Administration 303,498 361,998 374,845 12,847

Communications




Capital Outlay 246,800 184,200 13,777 (170,423)

Total Communications 725,426 666,926 473,604 (193,322)

Management Information Systems



Other Services and Charges 1,131,000 1,000,000 980,123 (19,877)

Total Management Information Systems 2,736,003 2,736,003 2,610,369 (125,634)



Net Management Information Systems 2,630,069 2,630,069 2,504,435 (125,634)

Human Resources Department




Total Human Resources Department 1,029,735 1,004,635 964,277 (40,358)



Net Human Resources Department 989,607 964,507 924,149 (40,358)

BUDGET AND ACTUAL (Continued)




GENERAL FUND


Variance

Original Final Over



ADMINISTRATIVE SERVICES (Continued)

Civil Service Commission


Materials and Supplies 1,100 1,100 430 (670)


Total Civil Service Commission 223,070 233,070 159,258 (73,812)



Net Civil Service Commission 214,374 224,374 150,562 (73,812)

Police Headquarters Maintenance




Total Police Headquarters Maintenance 608,018 706,818 709,072 2,254

Police Technical Services




Total Police Technical Services 1,853,607 1,853,607 1,516,916 (336,691)

TOTAL ADMINISTRATIVE SERVICES 9,031,242$ 9,029,142$ 8,275,984$ (753,158)$



SCHEDULE OF DETAILED EXPENDITURES - COMMUNITY SERVICES -

GENERAL FUND


Variance

Original Final Over


COMMUNITY SERVICES

Administration




Total Administration 311,833 324,633 333,050 8,417

Customer Service




Total Customer Service 474,311 474,311 485,263 10,952



Net Customer Service 455,133 455,133 466,085 10,952

Special Events Office


Materials and Supplies (1,900) (4,450) (2,261) 2,189


Total Special Events Office 239,025 245,325 246,070 745

Neighborhood Redevelopment




Total Neighborhood Redevelopment 600,776 610,376 484,611 (125,765)


Other Departments and Funds 602,335 602,335 397,864 (204,471)

Net Neighborhood Redevelopment (1,559) 8,041 86,747 78,706

BUDGET AND ACTUAL



SCHEDULE OF DETAILED EXPENDITURES - COMMUNITY SERVICES -

GENERAL FUND


Variance

Original Final Over


COMMUNITY SERVICES (Continued)

Public Information




Total Public Information 674,044 680,544 562,410 (118,134)



Net Public Information 647,740 654,240 536,106 (118,134)

Public Arts

Personnel Services 103,154 101,154 100,964 (190)



Total Public Arts 177,904 176,404 158,421 (17,983)

G.A.R. Museum

Personnel Services - - - -

Materials and Supplies 3,500 3,500 - (3,500)


Total G.A.R. Museum 18,400 16,400 7,629 (8,771)

Youth and Senior Services




Total Youth and Senior Services 689,948 658,248 622,711 (35,537)

Youth Grant Programs




Total Youth Grant Programs 92,502 92,502 59,586 (32,916)

TOTAL COMMUNITY SERVICES 2,630,926$ 2,630,926$ 2,516,405$ (114,521)$




SCHEDULE OF DETAILED EXPENDITURES - DEVELOPMENT SERVICES -

GENERAL FUND


Variance

Original Final Over


DEVELOPMENT SERVICES

Administration


Materials and Supplies 1,300 800 90 (710)


Total Administration 414,690 403,290 334,950 (68,340)





Total Building and Permits 2,034,738 2,034,738 2,041,768 7,030

Economic Development Commission




Total Economic Development Commission 2,285,894 2,305,094 2,102,717 (202,377)

Planning and Zoning




Total Planning and Zoning 866,675 858,875 905,167 46,292



Net Planning and Zoning 832,405 824,605 870,897 46,292

Public Works




Total Public Works 3,463,346 3,463,346 3,252,755 (210,591)



Net Public Works 1,826,402 1,826,402 1,607,137 (219,265)

TOTAL DEVELOPMENT SERVICES 7,394,129$ 7,394,129$ 6,957,469$ (436,660)$

BUDGET AND ACTUAL



SCHEDULE OF DETAILED EXPENDITURES - OPERATIONS -

GENERAL FUND


Variance

Original Final Over


OPERATIONS

Administration


Materials and Supplies 600 600 751 151


Total Administration 461,456 461,456 498,045 36,589

Animal Control




Total Animal Control 1,017,275 1,017,275 1,078,458 61,183

Electrical Maintenance




Total Electrical Maintenance 2,215,362 2,215,362 1,982,589 (232,773)

Maintenance Services




Total Maintenance Services 933,622 936,422 908,477 (27,945)

Equipment Services




Total Equipment Services 4,638,313 5,138,313 5,137,447 (866)



Net Equipment Services 78,713 578,713 109,910 (468,803)

Parks and Recreation




Total Parks and Recreation 2,396,643 2,425,643 2,264,780 (160,863)

BUDGET AND ACTUAL



SCHEDULE OF DETAILED EXPENDITURES - OPERATIONS -

GENERAL FUND


Variance

Original Final Over


OPERATIONS (Continued)

Phillips Park Zoo




Total Phillips Park Zoo 750,218 750,218 700,911 (49,307)

Property Standards




Total Property Standards 3,321,960 3,321,960 3,050,942 (271,018)

Street Maintenance




Capital Outlay - - - -

Total Street Maintenance 6,678,310 6,649,310 5,942,724 (706,586)

TOTAL OPERATIONS 17,853,559$ 18,356,359$ 16,536,836$ (1,819,523)$



BUDGET AND ACTUAL

WATER AND SEWER FUND


Variance

Original Final Over


REVENUES


Water Billings 26,035,000$ 26,035,000$ 29,441,473$ 3,406,473$

Permits and Fees 423,000 423,000 351,390 (71,610)

Recovery of Cost 6,400 6,400 9,629 3,229

Other Sales and Services 245,200 245,200 320,302 75,102


Total Revenues 27,353,400 27,353,400 30,435,372 3,081,972

EXPENDITURES

Meter Reading and Billing




Total Meter Reading and Billing 1,825,446 1,877,946 1,626,030 (251,916)

Water and Sewer Production




Capital Outlay 2,287,700 2,028,900 237,203 (1,791,697)

Total Water and Sewer Production 14,343,018 14,361,218 10,991,374 (3,369,844)

Meter Service and Maintenance




Total Meter Service and Maintenance 645,974 777,974 821,540 43,566







WATER AND SEWER FUND


Variance

Original Final Over


EXPENDITURES (Continued)

Water and Sewer Maintenance




Capital Outlay 2,219,200 2,264,400 1,247,891 (1,016,509)

Total Water and Sewer Maintenance 10,404,612 10,312,612 8,817,707 (1,494,905)

2006 Revenue Bond Projects

Capital Outlay 5,860,000 5,860,000 1,534,154 (4,325,846)

Intergovernmental

Contributions of Capital Assets

to Sanitary District 100,000 100,000 90,879 (9,121)

Debt Service

Principal and Interest 2,915,300 2,915,300 2,896,391 (18,909)


INCOME (LOSS) BEFORE OTHER

FINANCING SOURCES (USES) (8,740,950) (8,851,650) 3,657,297 12,508,947


Transfers (Out) (1,000,000) (1,000,000) (1,000,000) -


NET INCOME (LOSS) - BUDGET BASIS (9,740,950)$ (9,851,650)$ 2,657,297$ 12,508,947$



SCHEDULE OF INSURANCE COVERAGE AND OTHER INFORMATION

December 31, 2012

Deductible/

Policy/Contract Expiration Self-Insured Liability

Company Number Date Coverage Retention Limits

Chubb Group of Insurance Companies 3527-61-84 12/31/2012 Property and Inland Marine $50,000 $268,108,023

Chubb Group of Insurance Companies 6804-7728 12/31/2012 Internet Liability $10,000 $1,000,000

Great American Insurance Company IMP 1-49-45-31-03 1/27/2013 Fine Arts/City Statutes $1,000 $955,000

Safety National Casualty Corporation SP 4045315 12/31/2012 Excess Worker's Compensation $600,000 Statutory

Starr Indemnity & Liability Company SISCPEL00013511 12/31/2012 Excess General Liability $2,000,000 $20,000,000

Old Republic Insurance Company PR00183413 11/1/2013 Airport Liability None $15,000,000

AIG Environmental 1957573 3/31/2016 Commercial Pollution Legal Liability $250,000 $10,000,000

RSUI Indemnity Company NBA00037600 2/14/2013 Golf Course Liquor Liability N/A $1,000,000

QBE Insurance Group LG500789-13 12/31/2012 Medical Stop-Loss $325,000 $2,000,000

per individual per individual

HMO Illinois B56441 12/31/2012 Health Maintenance Organization N/A None

Cincinnati Insurance Company 8868412 4/30/2013 City Treasurer's Bond None $2,000,000

Third-Party Administrators:

Broadspire 78138000 12/31/2014 Worker's Compensation Claims Administration N/A N/A

Broadspire 77333600 12/31/2014 General Liability Claims Administration N/A N/A

Allied Benefit Systems N/A 12/31/2013 Medical Claims Administration N/A N/A

N/A - Not Applicable


Purpose Stormwater Management, Public Safety Facility Refunding Portions of Series 1998B

Central Police Station, Optical Fiber Cable Installation

Principal Due December 30 December 30

Interest Due December 30 and June 30 December 30 and June 30

Interest Rates - % 4.25, 4.50, 4.75

Principal Interest Total Principal Interest Total

Initial Obligation 31,070,000$ 24,751,151$ 55,821,151$ 22,075,000$ 4,740,078$ 26,815,078$

Redemptions/Refunded 4,145,000 8,810,024 12,955,024 13,885,000 3,905,828 17,790,828

Remaining Obligation 26,925,000$ 15,941,127$ 42,866,127$ 8,190,000$ 834,250$ 9,024,250$

2013 900,000$ 1,251,676$ 2,151,676$ 2,680,000$ 409,500$ 3,089,500$

2014 935,000 1,211,175 2,146,175 2,665,000 275,500 2,940,500

2015 965,000 1,169,100 2,134,100 2,705,000 142,250 2,847,250

2016 1,015,000 1,125,675 2,140,675 140,000 7,000 147,000

2017 1,060,000 1,080,000 2,140,000 - - -

2018 1,105,000 1,032,300 2,137,300 - - -

2019 1,150,000 982,575 2,132,575 - - -

2020 1,205,000 930,825 2,135,825 - - -

2021 1,255,000 876,600 2,131,600 - - -

2022 1,315,000 820,125 2,135,125 - - -

2023 1,380,000 760,950 2,140,950 - - -

2024 1,445,000 695,400 2,140,400 - - -

2025 1,520,000 626,762 2,146,762 - - -

2026 1,585,000 554,562 2,139,562 - - -

2027 810,000 479,275 1,289,275 - - -

2028 850,000 440,800 1,290,800 - - -

2029 885,000 400,425 1,285,425 - - -

2030 930,000 358,388 1,288,388 - - -

2031 970,000 314,213 1,284,213 - - -

2032 1,025,000 268,138 1,293,138 - - -

2033 1,070,000 219,450 1,289,450 - - -

2034 1,125,000 168,625 1,293,625 - - -

2035 1,185,000 115,188 1,300,188 - - -

2036 1,240,000 58,900 1,298,900 - - -

2037 - - - - - -

2038 - - - - - -

TOTAL 26,925,000$ 15,941,127$ 42,866,127$ 8,190,000$ 834,250$ 9,024,250$

Ending December 31,

Maturities Year

Series 2006 Series 2007

Dated August 1, 2006 Dated December 1, 2007


SCHEDULE OF CORPORATE PURPOSE BONDS

GENERAL LONG-TERM DEBT

December 31, 2012


Purpose Public Safety Facility Central Police Station, Public Safety Radio System and Other Capital

Emergency Equipment, Other Capital Improvements Projects



Interest Rates - % 3.50, 4.00, 4.125, 4.25 ,4.75, 5.00 1.250, 1.625, 2.375, 2.750, 3.375, 3.650, 4.000, 4.250

4.500, 4.625, 4.750, 4.875, 5.000



Redemptions/Refunded 10,640,000 17,423,291 28,063,291 2,545,000 1,970,418 4,515,418

Remaining Obligation 74,860,000$ 57,724,987$ 132,584,987$ 12,915,000$ 4,093,758$ 17,008,758$

Ending December 31,

2013 2,860,000$ 3,512,625$ 6,372,625$ 920,000$ 556,134$ 1,476,134$

2014 1,650,000 3,412,525 5,062,525 940,000 530,834 1,470,834

2015 1,695,000 3,354,775 5,049,775 960,000 499,108 1,459,108

2016 1,765,000 3,295,450 5,060,450 985,000 464,068 1,449,068

2017 1,835,000 3,224,850 5,059,850 1,010,000 424,669 1,434,669

2018 1,910,000 3,151,450 5,061,450 1,040,000 381,744 1,421,744

2019 1,985,000 3,075,050 5,060,050 1,075,000 337,544 1,412,544

2020 2,065,000 2,995,650 5,060,650 1,110,000 289,169 1,399,169

2021 2,160,000 2,913,050 5,073,050 1,150,000 237,832 1,387,832

2022 2,255,000 2,823,950 5,078,950 1,195,000 183,206 1,378,206

2023 2,355,000 2,728,112 5,083,112 1,240,000 124,950 1,364,950

2024 2,460,000 2,616,250 5,076,250 1,290,000 64,500 1,354,500

2025 2,575,000 2,493,250 5,068,250 - - -

2026 2,695,000 2,364,500 5,059,500 - - -

2027 2,825,000 2,229,750 5,054,750 - - -

2028 2,960,000 2,088,500 5,048,500 - - -

2029 3,100,000 1,940,500 5,040,500 - - -

2030 3,245,000 1,785,500 5,030,500 - - -

2031 3,400,000 1,623,250 5,023,250 - - -

2032 3,570,000 1,453,250 5,023,250 - - -

2033 3,750,000 1,274,750 5,024,750 - - -

2034 3,935,000 1,087,250 5,022,250 - - -

2035 4,130,000 890,500 5,020,500 - - -

2036 4,340,000 684,000 5,024,000 - - -

2037 4,555,000 467,000 5,022,000 - - -

2038 4,785,000 239,250 5,024,250 - - -

TOTAL 74,860,000$ 57,724,987$ 132,584,987$ 12,915,000$ 4,093,758$ 17,008,758$

Dated August 18, 2009

Series 2008 Series 2009A

Maturities Year

Dated May 15, 2008


SCHEDULE OF CORPORATE PURPOSE BONDS (Continued)


December 31, 2012


Purpose Refinance Installment/Promissory Notes Issued Refunding Portions of Series 2003B

Previously for the Purchase of Land



Interest Rates - % 2.000, 2.500, 3.000, 3.125, 3.500, 3.700 2.000, 2.500, 3.000


Initial Obligation 5,590,000$ 1,647,992$ 7,237,992$ 6,320,000$ 843,888$ 7,163,888$

Redemptions/Refunded 925,000 556,149 1,481,149 - 189,988 189,988


Ending December 31,

2013 335,000$ 152,029$ 487,029$ 945,000$ 174,925$ 1,119,925$

2014 345,000 143,654 488,654 1,045,000 156,025 1,201,025

2015 350,000 133,304 483,304 1,070,000 129,900 1,199,900

2016 360,000 122,804 482,804 1,105,000 97,800 1,202,800

2017 370,000 112,004 482,004 1,135,000 64,650 1,199,650

2018 380,000 100,904 480,904 1,020,000 30,600 1,050,600

2019 395,000 89,504 484,504 - - -

2020 405,000 77,160 482,160 - - -

2021 420,000 62,985 482,985 - - -

2022 420,000 48,285 468,285 - - -

2023 440,000 32,745 472,745 - - -

2024 445,000 16,465 461,465 - - -

2025 - - - - - -

2026 - - - - - -

2027 - - - - - -

2028 - - - - - -

2029 - - - - - -

2030 - - - - - -

2031 - - - - - -

2032 - - - - - -

2033 - - - - - -

2034 - - - - - -

2035 - - - - - -

2036 - - - - - -

2037 - - - - - -

2038 - - - - - -

TOTAL 4,665,000$ 1,091,843$ 5,756,843$ 6,320,000$ 653,900$ 6,973,900$

Maturities Year

Dated August 18, 2009 Dated November 29, 2011




December 31, 2012

Series 2009B Series 2011


Purpose Refunding Portions of Series 2004A Refunding Portions of Series 2004B



Interest Rates - % 2.000, 2.125, 2.250, 2.375, 2.500 2.000



Redemptions/Refunded - - - - - -


Ending December 31,

2013 480,000$ 181,806$ 661,806$ 600,000$ 78,773$ 678,773$

2014 525,000 136,494 661,494 625,000 51,300 676,300

2015 535,000 125,994 660,994 635,000 38,800 673,800

2016 540,000 115,293 655,293 645,000 26,100 671,100

2017 555,000 104,493 659,493 660,000 13,200 673,200

2018 570,000 93,393 663,393 - - -

2019 580,000 81,994 661,994 - - -

2020 595,000 70,394 665,394 - - -

2021 605,000 58,494 663,494 - - -

2022 625,000 45,638 670,638 - - -

2023 640,000 31,575 671,575 - - -

2024 655,000 16,375 671,375 - - -

2025 - - - - - -

2026 - - - - - -

2027 - - - - - -

2028 - - - - - -

2029 - - - - - -

2030 - - - - - -

2031 - - - - - -

2032 - - - - - -

2033 - - - - - -

2034 - - - - - -

2035 - - - - - -

2036 - - - - - -

2037 - - - - - -

2038 - - - - - -

TOTAL 6,905,000$ 1,061,943$ 7,966,943$ 3,165,000$ 208,173$ 3,373,173$




Series 2012B Series 2012C

Dated October 2, 2012 Dated October 2, 2012

Maturities Year

December 31, 2012


Purpose Refunding Portions of Series 2002 Special Service

Area No. 34 Debt Certificates

Principal Due December 30

Interest Due December 30 and June 30

Interest Rates - % 2.000, 3.000


Initial Obligation 3,095,000$ 393,055$ 3,488,055$ 179,180,000$ 114,858,734$ 294,038,734$

Redemptions/Refunded - - - 32,140,000 32,855,698 64,995,698

Remaining Obligation 3,095,000$ 393,055$ 3,488,055$ 147,040,000$ 82,003,036$ 229,043,036$

Ending December 31,

2013 460,000$ 104,205$ 564,205$ 10,180,000$ 6,421,673$ 16,601,673$

2014 470,000 74,350 544,350 9,200,000 5,991,857 15,191,857

2015 455,000 64,950 519,950 9,370,000 5,658,181 15,028,181

2016 500,000 51,300 551,300 7,055,000 5,305,490 12,360,490

2017 235,000 36,300 271,300 6,860,000 5,060,166 11,920,166

2018 280,000 29,250 309,250 6,305,000 4,819,641 11,124,641

2019 300,000 20,850 320,850 5,485,000 4,587,517 10,072,517

2020 395,000 11,850 406,850 5,775,000 4,375,048 10,150,048

2021 - - - 5,590,000 4,148,961 9,738,961

2022 - - - 5,810,000 3,921,204 9,731,204

2023 - - - 6,055,000 3,678,332 9,733,332

2024 - - - 6,295,000 3,408,990 9,703,990

2025 - - - 4,095,000 3,120,012 7,215,012

2026 - - - 4,280,000 2,919,062 7,199,062

2027 - - - 3,635,000 2,709,025 6,344,025

2028 - - - 3,810,000 2,529,300 6,339,300

2029 - - - 3,985,000 2,340,925 6,325,925

2030 - - - 4,175,000 2,143,888 6,318,888

2031 - - - 4,370,000 1,937,463 6,307,463

2032 - - - 4,595,000 1,721,388 6,316,388

2033 - - - 4,820,000 1,494,200 6,314,200

2034 - - - 5,060,000 1,255,875 6,315,875

2035 - - - 5,315,000 1,005,688 6,320,688

2036 - - - 5,580,000 742,900 6,322,900

2037 - - - 4,555,000 467,000 5,022,000

2038 - - - 4,785,000 239,250 5,024,250

TOTAL 3,095,000$ 393,055$ 3,488,055$ 147,040,000$ 82,003,036$ 229,043,036$

Combined Totals

Maturities Year




December 31, 2012

Series 2012D

Dated December 20, 2012


Purpose Partial Refunding of Series 2000

Installment Contract Certificates

Principal Due December 30

Interest Due December 30 and June 30

Interest Rates - % 4.00

Principal Interest Total

Initial Obligation 4,760,000$ 1,365,418$ 6,125,418$

Redemptions/Refunded 2,040,000 1,026,418 3,066,418

Remaining Obligation 2,720,000$ 339,000$ 3,059,000$

Maturities Year

Ending December 31,

2013 520,000$ 108,800$ 628,800$

2014 560,000 88,000 648,000

2015 555,000 65,600 620,600

2016 570,000 43,400 613,400

2017 305,000 20,600 325,600

2018 105,000 8,400 113,400

2019 105,000 4,200 109,200

2020 - - -

TOTAL 2,720,000$ 339,000$ 3,059,000$

December 31, 2012

Series 2006

Dated December 19, 2006


SCHEDULE OF INSTALLMENT CONTRACTS AND DEBT CERTIFICATES



Purpose Various Redevelopment Projects, Including Roadway Land Acquisition, Environmental Remediation

Improvements, Intersection Improvements and and Public Improvements in the City's Tax

Traffic Signal Installations Increment District Number 6


Interest Due June 30 and December 30 June 30 and December 30

Interest Rates - % 4.9, 5.85 6.75



Redemptions 5,365,000 2,443,878 7,808,878 645,000 1,877,815 2,522,815

Remaining Obligation 1,775,000$ 103,838$ 1,878,838$ 6,015,000$ 3,735,789$ 9,750,789$

Ending December 31,

2013 1,775,000$ 103,838$ 1,878,838$ 245,000$ 406,012$ 651,012$

2014 - - - 260,000 389,475 649,475

2015 - - - 280,000 371,925 651,925

2016 - - - 295,000 353,025 648,025

2017 - - - 315,000 333,112 648,112

2018 - - - 340,000 311,850 651,850

2019 - - - 360,000 288,900 648,900

2020 - - - 385,000 264,600 649,600

2021 - - - 410,000 238,613 648,613

2022 - - - 440,000 210,938 650,938

2023 - - - 470,000 181,238 651,238

2024 - - - 500,000 149,513 649,513

2025 - - - 535,000 115,763 650,763

2026 - - - 570,000 79,650 649,650

2027 - - - 610,000 41,175 651,175

TOTAL 1,775,000$ 103,838$ 1,878,838$ 6,015,000$ 3,735,789$ 9,750,789$

Maturities Year

Series 2004B Series 2008A

Dated September 23, 2008Dated July 27, 2004


SCHEDULE OF TIF BONDS/NOTES


December 31, 2012


Purpose Land Acquisition, Environmental Remediation and Project costs Related to Tax Increment

Public Infrastructure Improvements in the City's District Number 3

Tax Increment District Number 3


Interest Due June 30 and December 30 June 30 and December 30

Interest Rates - % 6.50 7.00



Redemptions 1,070,000 1,949,513 3,019,513 420,000 799,167 1,219,167

Remaining Obligation 6,195,000$ 2,665,325$ 8,860,325$ 3,280,000$ 1,603,350$ 4,883,350$

Ending December 31,

2013 405,000$ 402,676$ 807,676$ 180,000$ 229,600$ 409,600$

2014 430,000 376,350 806,350 200,000 217,000 417,000

2015 460,000 348,400 808,400 220,000 203,000 423,000

2016 485,000 318,500 803,500 235,000 187,600 422,600

2017 520,000 286,975 806,975 255,000 171,150 426,150

2018 550,000 253,175 803,175 280,000 153,300 433,300

2019 590,000 217,425 807,425 305,000 133,700 438,700

2020 625,000 179,075 804,075 335,000 112,350 447,350

2021 665,000 138,450 803,450 365,000 88,900 453,900

2022 710,000 95,225 805,225 395,000 63,350 458,350

2023 755,000 49,074 804,074 400,000 35,700 435,700

2024 - - - 110,000 7,700 117,700

2025 - - - - - -

2026 - - - - - -

2027 - - - - - -

TOTAL 6,195,000$ 2,665,325$ 8,860,325$ 3,280,000$ 1,603,350$ 4,883,350$


SCHEDULE OF TIF BONDS/NOTES (Continued)


December 31, 2012

Maturities Year

Series 2008B

Dated October 30, 2009Dated September 23, 2008

Series 2009 Notes


Principal Interest Total

Initial Obligation 24,765,000$ 15,178,675$ 39,943,675$

Redemptions 7,500,000 7,070,373 14,570,373

Remaining Obligation 17,265,000$ 8,108,302$ 25,373,302$

Ending December 31,

2013 2,605,000$ 1,142,126$ 3,747,126$

2014 890,000 982,825 1,872,825

2015 960,000 923,325 1,883,325

2016 1,015,000 859,125 1,874,125

2017 1,090,000 791,237 1,881,237

2018 1,170,000 718,325 1,888,325

2019 1,255,000 640,025 1,895,025

2020 1,345,000 556,025 1,901,025

2021 1,440,000 465,963 1,905,963

2022 1,545,000 369,513 1,914,513

2023 1,625,000 266,012 1,891,012

2024 610,000 157,213 767,213

2025 535,000 115,763 650,763

2026 570,000 79,650 649,650

2027 610,000 41,175 651,175

TOTAL 17,265,000$ 8,108,302$ 25,373,302$


December 31, 2012


SCHEDULE OF TIF BONDS/NOTES (Continued)

Combined

Maturities Year


Series 2006 Series 2012

Dated November 1, 2006 Dated December 20, 2012

Purpose Water and Sewer Improvements


Interest Due June 1 and December 1 December 30 and June 30

Interest Rates - % 4.000, 4.125, 4.250, 4.500, 4.625, 4.750 2.500



Redemptions 2,735,000 7,348,712 10,083,712 - - -


Ending December 31,

2013 695,000$ 1,348,682$ 2,043,682$ 355,000$ 68,861$ 423,861$

2014 725,000 1,320,882 2,045,882 365,000 58,125 423,125

2015 760,000 1,291,882 2,051,882 375,000 49,000 424,000

2016 790,000 1,261,482 2,051,482 385,000 39,625 424,625

2017 825,000 1,229,882 2,054,882 390,000 30,000 420,000

2018 870,000 1,196,882 2,066,882 400,000 20,250 420,250

2019 915,000 1,160,994 2,075,994 410,000 10,250 420,250

2020 955,000 1,122,106 2,077,106 - - -

2021 1,000,000 1,081,518 2,081,518 - - -

2022 1,045,000 1,036,518 2,081,518 - - -

2023 1,100,000 989,494 2,089,494 - - -

2024 1,145,000 939,994 2,084,994 - - -

2025 1,200,000 888,468 2,088,468 - - -

2026 1,265,000 834,468 2,099,468 - - -

2027 1,320,000 777,544 2,097,544 - - -

2028 1,385,000 718,144 2,103,144 - - -

2029 1,465,000 655,818 2,120,818 - - -

2030 1,540,000 589,894 2,129,894 - - -

2031 1,620,000 520,594 2,140,594 - - -

2032 1,705,000 447,694 2,152,694 - - -

2033 1,795,000 368,838 2,163,838 - - -

2034 1,890,000 283,574 2,173,574 - - -

2035 1,990,000 193,800 2,183,800 - - -

2036 2,090,000 99,274 2,189,274 - - -

TOTAL 30,090,000$ 20,358,426$ 50,448,426$ 2,680,000$ 276,111$ 2,956,111$

Maturities Year


SCHEDULE OF REVENUE BONDS

PROPRIETARY FUNDS

December 31, 2012

Refunding Portions of 2000 Alternate Revenue

Source Bonds


STATISTICAL SECTION

STATISTICAL SECTION

This part of the City’s comprehensive annual financial report presents detailed information as a

context for understanding what the information in the financial statements, note disclosures and

required supplementary information displays about the City’s overall financial health.

Contents Page(s)

Financial Trends

These schedules contain trend information to help the reader understand

how the City’s financial performance and well-being have been changed

over time.

185-193

Revenue Capacity

These schedules contain information to help the reader assess the City’s

most significant local revenue source, the property tax.

194-202

Debt Capacity

The schedules present information to help the reader assess the

affordability of the City’s current levels of outstanding debt and the City’s

ability to issue additional debt in the future.

203-207

Demographic and Economic Information

These schedules offer demographic and economic indicators to help the

reader understand the environment within which the City’s financial

activities take place.

208-210

Operating Information

These schedules contain service and infrastructure data to help the reader

understand how the information in the City’s financial report relates to the

services the City provides and the activities it performs.

211-212

Sources: Unless otherwise noted, the information in these schedules is derived from the

comprehensive annual financial reports for the relevant year.

Fiscal Year 2003 2004 2005 2006


Net Investment in Capital Assets 215,770,441$ 249,257,112$ 274,467,955$ 306,291,071$

Restricted 41,798,417 45,664,466 53,278,756 52,169,183

Unrestricted 21,301,388 15,030,057 13,598,213 18,558,664

TOTAL GOVERNMENTAL ACTIVITIES 278,870,246$ 309,951,635$ 341,344,924$ 377,018,918$



Restricted 12,641,998 12,466,599 12,255,354 9,929,971

Unrestricted 7,813,226 4,097,806 8,750,311 6,656,781

TOTAL BUSINESS-TYPE ACTIVITIES 158,242,564$ 163,682,210$ 172,945,465$ 176,541,042$

PRIMARY GOVERNMENT


Restricted 54,440,415 58,131,065 65,534,110 62,099,154

Unrestricted 29,114,614 19,127,863 22,348,524 25,215,445

TOTAL PRIMARY GOVERNMENT 437,112,810$ 473,633,845$ 514,290,389$ 553,559,960$

Data Source

Audited Financial Statements


NET POSITION BY COMPONENT

Last Ten Fiscal Years

- 185 -

2007 2008 2009 2010 2011 2012

323,833,683$ 360,690,801$ 373,628,698$ 403,827,533$ 400,801,028$ 418,850,676$

55,562,945 54,123,598 38,849,472 44,627,526 57,475,378 60,415,848

5,334,273 (7,818,447) (20,413,554) (24,627,343) (31,885,608) (43,572,795)

384,730,901$ 406,995,952$ 392,064,616$ 423,827,716$ 426,390,798$ 435,693,729$

162,705,578$ 160,610,126$ 160,616,931$ 158,416,912$ 159,199,865$ 160,897,280$

13,146,128 11,212,593 10,697,755 3,493,569 3,220,687 3,184,371

3,623,789 5,740,245 2,423,720 16,923,646 21,320,976 24,765,720

179,475,495$ 177,562,964$ 173,738,406$ 178,834,127$ 183,741,528$ 188,847,371$

486,539,261$ 521,300,927$ 534,245,629$ 562,244,445$ 560,000,893$ 579,747,956$

68,709,073 65,336,191 49,547,227 48,121,095 60,696,065 63,600,219

8,958,062 (2,078,202) (17,989,834) (7,703,697) (10,564,632) (18,807,075)

564,206,396$ 584,558,916$ 565,803,022$ 602,661,843$ 610,132,326$ 624,541,100$

- 186 -

Fiscal Year 2003 2004 2005

EXPENSES


General Government 15,391,097$ 17,894,174$ 18,783,587$

Public Safety 68,939,057 81,187,783 86,122,747

Streets and Transportation 22,544,629 27,689,528 25,246,001

Health and Welfare 6,632,812 5,515,102 8,193,362

Culture and Recreation 9,090,210 9,386,727 9,476,161

Sanitation* 456,486 555,730 483,683

Economic Development 3,360,615 3,433,674 5,389,849

Interest 3,604,363 3,303,853 3,978,610

Total Governmental Activities Expenses 130,019,269 148,966,571 157,674,000


Water and Sewer 23,991,484 23,376,495 22,980,401

Downtown Parking 1,518,280 1,811,241 1,653,091

Commuter Parking 1,131,074 1,556,833 1,895,792

Golf Operations 2,206,362 2,312,304 2,621,591

Total Business-Type Activities Expenses 28,847,200 29,056,873 29,150,875

TOTAL PRIMARY GOVERNMENT EXPENSES 158,866,469$ 178,023,444$ 186,824,875$

PROGRAM REVENUES



General Government 4,256,218$ 4,481,055$ 4,474,379$

Public Safety 4,240,482 4,138,001 4,638,184

Streets and Transportation 2,582,926 1,269,585 486,212

Health and Welfare 2,259,611 2,500,743 3,085,744

Culture and Recreations 1,132,403 1,788,307 1,879,346

Sanitation* 12,822 10,302 21,279

Economic Development 66,221 119,281 132,389

Operating Grants and Contributions 6,440,054 6,964,979 8,246,989

Capital Grants and Contributions 702,240 2,555,223 2,105,032

Total Governmental Activities

Program Revenues 21,692,977 23,827,476 25,069,554



Water and Sewer 25,850,023 25,947,122 28,051,854

Downtown Parking 1,295,719 1,181,830 1,145,685

Commuter Parking 1,381,118 1,546,566 1,647,191

Golf Operations 1,860,195 1,844,406 1,994,998

Operating Grants and Contributions - - -

Capital Grants and Contributions - - 131,403

Total Business-Type Activities

Program Revenues 30,387,055 30,519,924 32,971,131

TOTAL PRIMARY GOVERNMENT

PROGRAM REVENUES 52,080,032$ 54,347,400$ 58,040,685$

NET (EXPENSE) REVENUE

Governmental Activities (108,326,292)$ (125,139,095)$ (132,604,446)$

Business-Type Activities 1,539,855 1,463,051 3,820,256


NET (EXPENSE) REVENUE (106,786,437)$ (123,676,044)$ (128,784,190)$




- 187 -

2006 2007 2008 2009 2010 2011 2012

20,024,451$ 19,504,963$ 17,480,753$ 21,683,280$ 21,123,216$ 20,510,561$ 20,588,032$

87,450,539 97,900,207 100,760,039 108,896,449 110,218,850 108,555,389 112,902,507

35,248,707 34,243,999 41,693,763 34,839,503 30,275,204 28,208,054 29,621,587

10,933,563 13,872,746 10,928,357 11,420,275 11,499,524 12,712,638 12,825,038

9,937,979 10,278,084 12,275,406 9,207,127 6,173,800 5,790,323 5,589,522

262,462 399,804 1,932,966 1,842,287 - - -

10,242,420 14,424,850 13,491,204 21,809,306 11,858,643 12,854,342 14,673,809

4,444,603 5,216,216 6,863,786 9,193,424 9,355,114 8,940,572 8,250,302

178,544,724 195,840,869 205,426,274 218,891,651 200,504,351 197,571,879 204,450,797

26,433,821 29,620,769 33,357,399 28,292,478 30,386,150 25,715,582 27,923,402

1,566,283 1,561,873 1,562,606 1,547,246 1,522,662 1,386,368 1,427,840

1,977,311 2,032,704 2,393,208 2,325,390 1,946,223 2,168,700 1,934,761

2,407,016 2,541,067 2,089,119 2,127,103 2,323,672 2,038,860 2,222,436

32,384,431 35,756,413 39,402,332 34,292,217 36,178,707 31,309,510 33,508,439

210,929,155$ 231,597,282$ 244,828,606$ 253,183,868$ 236,683,058$ 228,881,389$ 237,959,236$

1,942,286$ 2,037,171$ 2,158,763$ 2,244,848$ 4,450,187$ 4,151,453$ 4,510,988$

4,951,435 4,574,020 6,938,123 5,866,096 7,084,591 5,420,708 6,352,306

2,175,980 2,306,152 2,528,895 3,304,190 1,545,250 1,501,823 581,212

5,683,034 5,711,290 6,684,421 4,919,505 7,813,819 8,184,103 9,233,448

1,735,773 1,750,719 2,009,957 824,936 224,095 55,649 70,773

17,264 16,624 1,841,889 1,664,787 - - -

96,937 106,646 102,128 16,181 - 32,800 -

8,687,629 7,616,132 6,279,254 6,560,358 17,819,932 11,433,555 11,445,052

1,909,150 899,168 29,994,985 11,906,735 20,966,577 9,492,188 20,308,026

27,199,488 25,017,922 58,538,415 37,307,636 59,904,451 40,272,279 52,501,805

26,638,438 27,802,537 26,542,326 25,888,333 27,138,306 27,110,225 30,113,165

1,088,602 1,073,198 1,028,216 885,576 981,493 871,841 807,228

1,803,123 1,810,162 1,942,726 2,056,431 2,077,473 2,066,686 2,024,724

1,917,699 2,028,655 1,896,302 1,888,659 1,899,338 1,719,595 1,820,546

- - - - - - -

149,703 - 6,293,270 3,901,175 15,060,750 4,468,842 4,173,659

31,597,565 32,714,552 37,702,840 34,620,174 47,157,360 36,237,189 38,939,322

58,797,053$ 57,732,474$ 96,241,255$ 71,927,810$ 107,061,811$ 76,509,468$ 91,441,127$

(151,345,236)$ (170,822,947)$ (146,887,859)$ (181,584,015)$ (140,599,900)$ (157,299,600)$ (151,948,992)$

(786,866) (3,041,861) (1,699,492) 327,957 10,978,653 4,927,679 5,430,883

(152,132,102)$ (173,864,808)$ (148,587,351)$ (181,256,058)$ (129,621,247)$ (152,371,921)$ (146,518,109)$

- 188 -

Fiscal Year 2003 2004 2005

GENERAL REVENUES AND OTHER

CHANGES IN NET POSITION


Taxes

Property 45,583,314$ 50,304,346$ 57,708,745$

Sales 30,256,504 34,162,525 37,912,528

Utility 3,666,274 10,334,190 10,171,077

Income 8,861,010 9,824,925 11,735,935

Real Estate Transfer 3,858,185 4,197,985 4,736,179

Food and Beverage 3,847,998 4,033,186 4,135,344

Gaming 14,253,797 12,923,396 13,661,653

Hotel/Motel 223,949 257,976 314,629

Other 1,098,382 530,378 511,905

Investment Income 645,395 908,669 2,842,966

Miscellaneous 5,045,538 235,164 1,587,358

Gain (Loss) on Sale of Capital Assets (2,908,972) (4,469,869) -

Contributions 7,805,836 20,592,572 19,299,416

Special Item - - -

Transfers 775,000 725,000 (620,000)

Component Unit Transfers - - -

Total Governmental Activities 123,012,210 144,560,443 163,997,735


Sales 271,306 - -

Investment Income 217,178 151,963 429,018

Miscellaneous 127,785 38,536 2,349

Gain (Loss) on Sale of Capital Assets (429,573) 4,361 -

Contributions 2,890,443 4,506,735 4,391,632

Transfers (775,000) (725,000) 620,000

Total Business-Type Activities 2,302,139 3,976,595 5,442,999

TOTAL PRIMARY GOVERNMENT 125,314,349$ 148,537,038$ 169,440,734$


Governmental Activities 14,685,918$ 19,421,348$ 31,393,289$

Business-Type Activities 3,841,994 5,439,646 9,263,255


CHANGE IN NET POSITION 18,527,912$ 24,860,994$ 40,656,544$

*Sanitation is combined with health and welfare beginning in 2010.

Data Source



CHANGE IN NET POSITION (Continued)


- 189 -

2006 2007 2008 2009 2010 2011 2012

67,422,981$ 73,435,415$ 79,201,939$ 82,845,255$ 85,791,335$ 82,425,418$ 79,226,198$

42,473,377 40,471,565 39,760,622 36,434,096 38,657,829 40,911,661 41,957,531

10,153,603 10,952,041 10,756,816 10,362,550 10,125,801 10,231,247 10,163,505

12,876,536 14,357,727 15,589,361 13,385,104 12,960,748 14,334,299 17,388,869

4,943,655 3,432,176 1,805,490 1,260,381 1,352,542 1,396,683 1,921,008

3,430,022 3,526,036 3,616,354 3,419,497 3,554,765 3,728,894 4,002,735

15,235,222 15,579,995 12,729,676 11,809,475 10,624,299 10,241,111 9,044,541

370,806 409,067 417,698 373,696 393,253 436,624 463,512

617,621 1,026,959 830,184 855,881 913,533 905,063 1,019,382

5,149,143 6,003,812 4,114,618 1,375,305 294,340 405,583 197,271

1,003,758 763,900 1,593,393 1,008,521 1,160,863 1,003,328 1,306,832

- - - - - - -

22,539,843 7,976,237 - - - - -

- - - - - (6,957,229) (4,973,299)

650,000 600,000 1,000,000 865,000 550,000 800,000 725,000

- - - - - - -

186,866,567 178,534,930 171,416,151 163,994,761 166,379,308 159,862,682 162,443,085

- 322,783 - - 350,000 369,103 444,665

1,145,103 2,153,993 1,317,575 407,201 284,011 385,939 316,187

4,657 6,249 935 9,454 16,749 24,680 9,629

- - - - - - -

3,882,683 4,093,289 - - - - -

(650,000) (600,000) (1,000,000) (865,000) (550,000) (800,000) (725,000)

4,382,443 5,976,314 318,510 (448,345) 100,760 (20,278) 45,481

191,249,010$ 184,511,244$ 171,734,661$ 163,546,416$ 166,480,068$ 159,842,404$ 162,488,566$

35,521,331$ 7,711,983$ 24,528,292$ (17,589,254)$ 25,779,408$ 2,563,082$ 10,494,093$

3,595,577 2,934,453 (1,380,982) (120,388) 11,079,413 4,907,401 5,476,364

39,116,908$ 10,646,436$ 23,147,310$ (17,709,642)$ 36,858,821$ 7,470,483$ 15,970,457$

- 190 -


FUND BALANCES OF GOVERNMENTAL FUNDS


Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

GENERAL FUND

Reserved 500,000$ 400,000$ 300,000$ 200,000$ 100,000$ -$ -$ -$ -$ -$

Unreserved 12,318,629 13,387,091 13,806,101 14,655,750 15,262,371 19,412,483 19,947,232 19,913,245 - -

Nonspendable - - - - - - - - - -

Restricted - - - - - - - - - -

Committed - - - - - - - - - -

Assigned - - - - - - - - 1,260,361 -

Unassigned - - - - - - - - 19,723,887 21,212,281

TOTAL GENERAL FUND 12,818,629$ 13,787,091$ 14,106,101$ 14,855,750$ 15,362,371$ 19,412,483$ 19,947,232$ 19,913,245$ 20,984,248$ 21,212,281$

ALL OTHER GOVERNMENTAL FUNDS

Reserved 24,788,179$ 30,166,368$ 39,874,049$ 41,456,897$ 49,785,523$ 47,711,763$ 39,157,274$ 48,837,828$ -$ -$

Unreserved, Designated - - - - - 500,000 900,000 1,300,000 - -

Unreserved, Undesignated, Reported In

Special Revenue Funds 6,210,816 9,106,497 7,628,655 11,102,058 11,330,880 15,033,828 10,041,877 8,743,728 - -

Capital Project Funds 15,887,494 27,677,623 25,901,965 54,114,983 27,597,572 80,415,980 48,799,237 33,234,868 - -

Nonspendable - - - - - - - - 2,000,500 15,695

Restricted - - - - - - - - 60,770,045 63,742,737

Committed - - - - - - - - - -

Assigned - - - - - - - - 33,775,570 34,757,696

Unassigned - - - - - - - - - #REF!

TOTAL ALL OTHER GOVERNMENTAL FUNDS 46,886,489$ 66,950,488$ 73,404,669$ 106,673,938$ 88,713,975$ 143,661,571$ 98,898,388$ 92,116,424$ 96,546,115$ #REF!

Data Source


- 191 -


CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS


Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

REVENUES

Taxes 111,649,413$ 127,733,824$ 142,820,048$ 158,289,578$ 163,635,105$ 165,527,716$ 161,315,332$ 165,012,636$ 165,292,674$ 165,598,242$

Intergovernmental 8,031,791 10,380,514 12,065,924 12,922,325 8,987,990 7,512,307 8,782,615 14,148,838 19,565,678 22,965,776

Licenses and Permits 10,547,467 4,002,116 3,885,153 5,731,535 5,755,823 6,627,311 4,713,540 5,726,038 5,857,587 7,024,561

Charges for Services 5,537,946 5,592,334 6,900,269 7,466,714 8,090,464 11,834,405 10,166,406 10,279,022 10,249,588 12,072,241

Fines and Forfeitures 1,501,908 1,496,219 1,808,794 1,635,816 1,173,867 1,793,375 1,845,006 2,684,866 2,108,039 2,535,273

Donations - - - - - - - - - 37,000

Development Participation 1,515,752 1,609,227 1,574,852 1,508,985 1,197,806 1,136,920 1,166,870 1,081,870 1,103,520 95

Investment Income 645,397 908,669 2,842,966 5,149,143 6,003,812 4,114,618 1,375,305 294,340 405,583 197,271

Other 1,168,368 1,913,487 1,424,102 1,289,751 1,144,129 1,332,743 2,776,712 9,896,717 1,403,515 512,573

Total Revenues 140,598,042 153,636,390 173,322,108 193,993,847 195,988,996 199,879,395 192,141,786 209,124,327 205,986,184 210,943,032

EXPENDITURES

General Government 16,304,534 14,798,929 15,592,737 18,955,491 18,842,827 17,283,122 17,433,098 18,444,801 17,365,565 17,517,640

Public Safety 67,211,008 72,848,344 74,069,340 81,887,684 89,061,874 93,549,898 100,548,524 105,741,979 99,632,098 103,519,376

Streets and Transportation 18,941,468 17,711,313 19,495,795 26,899,738 25,685,901 27,070,426 22,878,788 21,522,421 18,716,990 17,657,957

Health and Welfare 6,004,273 5,442,757 7,663,765 8,866,212 10,388,649 8,927,903 9,247,109 12,721,781 11,964,561 11,591,967

Culture and Recreation 8,206,225 8,396,918 9,044,586 9,082,323 10,584,426 12,140,445 9,250,282 6,395,066 5,212,305 5,689,181

Sanitation* 454,614 495,425 441,252 282,075 303,980 1,921,667 1,836,671 - - -

Economic Development 2,894,986 3,461,504 4,645,445 6,769,469 7,930,411 11,512,332 18,611,206 7,578,841 10,473,647 14,642,624

Capital Outlay 9,352,842 12,893,176 20,645,087 26,293,448 39,223,139 56,314,148 61,118,211 25,573,227 15,560,385 24,522,214

Other - - - - - - - - - -

Debt Service

Principal 6,008,041 6,455,843 8,603,799 9,196,829 9,759,937 9,453,124 12,496,393 13,739,745 13,578,182 26,321,707

Interest 3,389,958 3,696,134 4,073,677 3,790,037 5,439,831 6,583,217 9,295,739 9,631,417 8,850,427 8,608,563

Other Charges 164,565 90,612 3,300 - - - - - - -

Total Expenditures 138,932,514 146,290,955 164,278,783 192,023,306 217,220,975 244,756,282 262,716,021 221,349,278 201,354,160 230,071,229


OVER EXPENDITURES 1,665,528 7,345,435 9,043,325 1,970,541 (21,231,979) (44,876,887) (70,574,235) (12,224,951) 4,632,024 (19,128,197)

- 192 -

Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012


Transfers In 9,692,480$ 9,824,069$ 10,612,903$ 16,378,500$ 11,737,330$ 9,233,876$ 14,555,207$ 16,312,309$ 13,479,000$ 28,766,400$

Transfers (Out) (10,167,480) (14,199,069) (23,182,903) (15,728,500) (8,037,330) (8,233,876) (13,690,207) (15,762,309) (12,679,000) (28,041,400)

Transfers (Out) - Component Unit (100,000) - - - - - - - - -

Promissory Note Issued - - 4,360,000 - - - - - - -

Refunding Bonds Issued 31,860,000 7,130,000 - - 22,075,000 - 5,590,000 - 6,320,000 13,165,000

Premium on Refunding Bonds 477,270 - - - 946,050 - 77,717 - 388,670 466,855

Payment to Escrow Agent (32,158,172) (7,043,673) - (4,751,291) (22,942,413) - - - - -

Notes Refunded - - - - - - (5,429,847) - - -

Bonds Issued - 17,140,000 5,705,000 35,830,000 - 99,425,000 15,460,000 - - -

Premium on Bonds Issued - - 84,866 64,505 - 1,056,278 - - - -

Discount on Bonds Issued - - - - - (106,683) (13,416) - - -

Proceeds from Installment Contracts - - - - - - - - - -

Proceeds from IEPA Loan - - - - - - - - - -

Proceeds from Section 108 Loans 290,000 1,150,000 150,000 102,500 - - - - - -

Proceeds from Debt Certificates - - - - - - - - - -

Premium on Debt Certificates - - - - - - - - - -

Notes Issued - - - - - 2,500,000 10,073,847 4,859,000 (6,640,000) -

Discount on Notes Issued - - - - - - (277,500) - - -

Sale of Capital Assets 1,206 258,165 - - - - - - - 2,978,132

Total Other Financing Sources (Uses) (104,696) 14,259,492 (2,270,134) 31,895,714 3,778,637 103,874,595 26,345,801 5,409,000 868,670 17,334,987

NET CHANGE IN FUND BALANCES 1,560,832$ 21,604,927$ 6,773,191$ 33,866,255$ (17,453,342)$ 58,997,708$ (44,228,434)$ (6,815,951)$ 5,500,694$ (1,793,210)$

DEBT SERVICE AS A PERCENTAGE OF

NONCAPITAL EXPENDITURES 7.25% 7.61% 8.83% 7.84% 8.54% 8.34% 10.57% 11.55% 11.60% 16.51%

*Sanitation is combined with health and welfare beginning in 2010.

Data Source


- 193 -

Tax Levy Year

ASSESSED VALUATION

Kane County Portion 1,225,644,092$ 1,378,349,395$ 1,484,844,812$ 1,616,710,507$ 1,763,672,574$

DuPage County Portion 1,192,038,381 1,302,293,958 1,389,629,043 1,475,969,735 1,557,389,872

Kendall County Portion 40,971,518 56,835,958 78,856,332 102,683,468 114,307,056

Will County Portion 147,164,161 188,042,016 232,476,240 256,348,225 274,629,509

TOTAL ASSESSED VALUATION 2,605,818,152$ 2,925,521,327$ 3,185,806,427$ 3,451,711,935$ 3,709,999,011$

Rate* Amount Rate* Amount Rate* Amount Rate* Amount Rate* Amount

TAX EXTENSIONS

General Fund 1.2584 32,790,600$ 1.2368 36,184,100$ 1.2595 40,124,700$ 1.2685 43,786,543$ 1.2677 47,030,811$

IMRF - - - - - - - - - -

Debt Service Fund - - - - - - 0.1170 4,037,337 0.1089 4,038,669

Police Pension Fund 0.1423 3,708,861 0.1540 4,506,300 0.1467 4,675,000 0.1529 5,278,283 0.1554 5,764,397

Firefighters' Pension Fund 0.1289 3,359,811 0.1342 3,925,600 0.1362 4,340,000 0.1337 4,614,748 0.1374 5,097,864

City Levy 1.5296 39,859,272 1.5250 44,616,000 1.5424 49,139,700 1.6721 57,716,911 1.6694 61,931,741

Library General Fund 0.2402 6,260,000 0.2395 7,007,000 0.2422 7,717,000 0.2442 8,428,083 0.2450 9,089,444

Library Debt Service Fund 0.0103 267,315 0.0129 376,630 0.0119 378,690 0.0110 378,828 0.0103 381,053

Library Levy 0.2505 6,527,315 0.2524 7,383,630 0.2541 8,095,690 0.2552 8,806,911 0.2553 9,470,497

TOTAL TAX EXTENSIONS 1.7801 46,386,587$ 1.7774 51,999,630$ 1.7965 57,235,390$ 1.9273 66,523,822$ 1.9247 71,402,238$

20032002


PROPERTY TAX ASSESSED VALUATIONS, RATES AND EXTENSIONS

Last Ten Tax Levy Years

20062004 2005

- 194 -

Tax Levy Year

ASSESSED VALUATION

Kane County Portion 1,907,177,864$ 2,001,714,381$ 1,959,260,286$ 1,809,362,652$ 1,625,951,658$

DuPage County Portion 1,679,678,537 1,790,478,973 1,808,716,577 1,728,074,480 1,606,824,629

Kendall County Portion 123,477,670 131,450,428 130,434,946 120,944,577 112,030,593

Will County Portion 303,237,198 297,202,743 288,656,587 280,760,031 253,727,625

TOTAL ASSESSED VALUATION 4,013,571,269$ 4,220,846,525$ 4,187,068,396$ 3,939,141,740$ 3,598,534,505$

Rate* Amount Rate* Amount Rate* Amount Rate* Amount Rate* Amount

TAX EXTENSIONS

General Fund 1.2395 49,746,723$ 1.2206 51,519,179$ 1.1430 47,856,152$ 1.0725 42,247,295$ 1.1612 41,786,226$

IMRF - - - - - - 0.0692 2,725,128 0.0760 2,733,834

Debt Service Fund 0.1009 4,047,728 0.0948 4,000,936 0.0964 4,036,167 0.1025 4,036,776 0.1122 4,036,582

Police Pension Fund 0.1684 6,759,198 0.1605 6,774,108 0.2282 9,553,275 0.2590 10,200,475 0.2240 8,062,193

Firefighters' Pension Fund 0.1521 6,103,299 0.1450 6,119,516 0.1889 7,908,878 0.2127 8,377,739 0.1984 7,139,746

City Levy 1.6609 66,656,948 1.6209 68,413,739 1.6565 69,354,472 1.7159 67,587,413 1.7718 63,758,581

Library General Fund 0.2450 9,833,422 0.2353 9,931,402 0.2450 10,258,239 0.2450 9,650,897 0.2446 8,800,678

Library Debt Service Fund 0.0096 387,226 0.0091 382,467 0.0092 386,973 0.0098 385,489 0.0053 190,525

Library Levy 0.2546 10,220,648 0.2444 10,313,869 0.2542 10,645,212 0.2548 10,036,386 0.2499 8,991,203

TOTAL TAX EXTENSIONS 1.9155 76,877,596$ 1.8653 78,727,608$ 1.9107 79,999,684$ 1.9707 77,623,799$ 2.0217 72,749,784$

* Property tax rates are per $100 of assessed valuation.

Note: 2012 information is not available.

Data Source

City Records

20102007 2008 2009 2011


PROPERTY TAX ASSESSED VALUATIONS, RATES AND EXTENSIONS (Continued)


- 195 -

Total Estimated Estimated

Total Taxable Direct Actual Actual

Levy Residential Commercial Industrial Rural Railroad Assessed Tax Taxable Taxable

Year Property Property Property Property Property Value Rate Value Value

2002 1,947,542,802$ 453,556,924$ 202,235,923$ 1,076,272$ 1,406,231$ 2,605,818,152$ 1.5296$ 7,817,454,456$ 33.333%

2003 2,219,531,582 480,269,823 223,488,866 1,039,188 1,191,868 2,925,521,327 1.5250 8,776,563,981 33.333%

2004 2,427,054,837 519,356,096 236,877,073 1,352,322 1,166,099 3,185,806,427 1.5424 9,557,419,281 33.333%

2005 2,649,404,846 548,909,149 250,855,968 1,079,867 1,462,105 3,451,711,935 1.6721 10,355,135,805 33.333%

2006 2,873,330,709 627,467,163 288,823,464 1,246,366 1,127,684 3,791,995,386 1.6694 11,375,986,158 33.333%

2007 3,119,661,075 610,906,155 281,084,086 1,170,473 749,480 4,013,571,269 1.6609 12,040,713,807 33.333%

2008 3,250,613,934 664,325,891 303,808,658 1,244,196 853,846 4,220,846,525 1.6209 12,662,539,575 33.333%

2009 3,215,060,697 652,132,768 317,484,799 1,367,617 1,022,515 4,187,068,396 1.6565 12,561,205,188 33.333%

2010 3,017,867,140 616,823,178 301,946,177 1,397,339 1,107,906 3,939,141,740 1.7159 11,817,425,220 33.333%

2011 2,730,761,797 582,824,054 282,100,080 1,514,150 1,334,424 3,598,534,505 1.7718 10,795,603,515 33.333%

Note: Property is assessed at 33% of actual value.

2012 information is not available.

Data Source

Office of the Clerks of Kane, DuPage, Kendall and Will Counties.


ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY

Last Ten Levy Years

- 196 -

Tax Levy Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

TAX RATES*

County

Kane 0.5687 0.4848 0.4899 0.5272 0.5199 0.5296 0.5268 0.5395 0.5931 0.6599

DuPage 0.3688 0.3418 0.3208 0.3068 0.3016 0.2838 0.2763 0.2771 0.2980 0.3187

Kendall 0.7139 0.6884 0.6563 0.6491 0.6224 0.6887 0.6690 0.6678 0.7438 0.8203

Will 0.7376 0.7080 0.6943 0.6861 0.6523 0.6367 0.6387 0.6543 0.6841 0.7244

Township

Aurora 0.2756 0.2509 0.2388 0.2302 0.2216 0.2139 0.2141 0.2190 0.2428 0.2742

Sugar Grove 0.3287 0.3186 0.2953 0.2841 0.2656 0.2617 0.2383 0.2403 0.2510 0.2615

Batavia 0.1388 0.1311 0.1261 0.1215 0.1189 0.1156 0.1160 0.1174 0.1245 0.1334

Naperville 0.0926 0.0887 0.0861 0.0842 0.0828 0.0802 0.0796 0.0789 0.0855 0.0894

Winfield 0.2263 0.2263 0.2127 0.2079 0.2012 0.1980 0.1957 0.1977 0.2139 0.2363

Oswego 0.2899 0.2717 0.2621 0.2534 0.2523 0.2421 0.2456 0.2405 0.2594 0.2671

Wheatland 0.0932 0.0825 0.0889 0.0821 0.0753 0.0715 0.0646 0.0752 0.0805 0.0831

Airport Authority - DuPage 0.0248 0.0230 0.0213 0.0198 0.0183 0.0170 0.0160 0.0148 0.0158 0.0169

Park District

Fox Valley 0.4086 0.3995 0.4068 0.3846 0.3746 0.4037 0.4014 0.4122 0.4803 0.5286

Batavia - - - 0.4227 0.4410 0.4389 0.4425 0.4521 0.4529 0.4875

Sugar Grove 0.0071 0.1291 0.1587 0.1569 0.1424 0.1398 0.1408 0.1463 0.1603 0.1756

Oswego 0.4974 0.4586 0.4586 0.4353 0.4122 0.3896 0.3880 0.3594 0.3830 0.4117

Junior College District:

#502 - DuPage 0.2179 0.2097 0.1972 0.1874 0.1929 0.1888 0.1858 0.2127 0.2349 0.2495

#516 - Waubonsee 0.4043 0.4134 0.4099 0.3933 0.3984 0.3950 0.3995 0.4043 0.4070 0.4710

School District:

#101 - Batavia 4.2412 4.0372 4.6508 4.7369 4.6989 4.6989 4.6986 4.6986 4.9034 5.7833

#129 - West Aurora 4.0625 3.9066 3.8155 3.6786 3.5635 4.1252 4.1225 4.1835 4.2740 5.1603

#131 - East Aurora 4.0496 3.8466 0.3817 3.6793 3.5631 3.4242 3.7528 3.8794 4.0041 4.9160

#204 - Indian Prairie 5.0037 5.0604 5.0036 4.8815 4.6678 4.4930 4.4858 4.4987 4.8927 5.2200

#302 - Kaneland - 4.6805 4.5024 4.8886 4.6796 4.8411 4.8854 5.0024 5.3897 5.9619

#308 - Oswego 5.3275 5.2318 5.4881 4.6480 5.0600 5.0600 5.0600 5.0600 5.8377 6.6573


PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS

Last Ten Levy Years

- 197 -

Tax Levy Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

City of Aurora

General 1.1924 1.1788 1.1966 1.2046 1.1987 1.1718 1.1519 1.0725 1.1417 1.2372

Debt Service - - - 0.1165 0.1089 0.1009 0.0948 0.0964 0.1025 0.1122

Police Pension 0.1423 0.1540 0.1467 0.1523 0.1554 0.1684 0.1605 0.2282 0.2590 0.2240

Firefighters' Pension 0.1289 0.1342 0.1362 0.1335 0.1374 0.1521 0.1450 0.1889 0.2127 0.1984

City of Aurora Public Library 0.2505 0.2524 0.2541 0.2548 0.2553 0.2546 0.2444 0.2542 0.2545 0.2503

Total Combined Tax Rates

Within School District #101 7.1611 7.1589 7.4485 7.7003 7.6610 7.6545 7.6415 7.6705 7.9961 9.0623




Within School District #302 - 8.1504 7.9024 8.4243 8.1862 8.3693 8.3755 8.5334 9.1158 9.9267


* Property tax rates are per $100 of assessed valuation. Tax rates for 2011 were not available at the time of printing.

Notes:

(a) Rates vary throughout the City because of overlapping boundaries for counties, townships, fire districts, sanitary districts, school districts, etc.

(b) Tax rates for the year listed are used for the extension and collection in the subsequent year.

(c) Special service area rates excluded.

Data Sources

Offices of the Clerks of Kane, DuPage, Kendall and Will Counties.

- 198 -


PRINCIPAL PROPERTY TAXPAYERS

Current Year and Nine Years Ago

Percentage Percentage

of Total of Total

City City

Taxable Taxable Taxable Taxable

Assessed Assessed Assessed Assessed

Taxpayer Value Rank Valuation Value Rank Valuation

Simon/Chelsea Chicago Development, LLC 38,928,626$ 1 1.08% -$ -

Westfield Shoppingtown 34,830,640 2 0.97% 28,600,010 1 0.98%

Liberty Illlinois LP 31,564,378 3 0.88% - -

Toyota Motor Sales, USA, Inc. 23,106,942 4 0.64% 13,099,248 2 0.45%

Aurora Industrial Holding Company, LLC 19,539,015 5 0.54% - -

AIMCO 14,260,790 6 0.40% 11,566,350 4 0.40%

Amli at Oakhurst LLC 12,322,520 7 0.34% 10,725,540 6 0.37%

Reliant Energy Aurora LP 9,540,310 8 0.27% 7,573,690 9 0.26%

Cabot Microelectronics 8,847,790 9 0.25% - -

Wal-Mart Real Estate Business Trust 8,033,196 10 0.22% - -

Katten Muchin Zavis+A7 - - - -

Meijer Stores Ltd. Property - - 9,833,809 7 0.34%

Duke Realty Investments - - 11,109,660 5 0.38%

Yorkshire Center LLC - - 8,305,570 8 0.28%

USAA Real Estate Company - - 11,954,135 3 0.41%

Bristol/Moran LLC - - - -

Arnold Lies Co - - 7,421,348 10 0.25%

200,974,207$ 5.58% 120,189,360$ 4.11%

Data Source

2012 2003

DuPage and Kane Counties. Kendall and Will Counties have been excluded since they consist of approximately 10% of the City's 2010 EAV.

Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers contain multiple parcels, and it is

possible that some parcels and their valuations have been overlooked.

- 199 -

Tax Levy Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

General Fund 36,500,673$ 39,702,824$ 43,266,699$ 46,679,355$ 49,590,770$ 50,972,054$ 47,556,427$ 42,182,005$ 41,505,979 (a)

IMRF Fund 2,718,541 2,716,740 (a)

Debt Service - - 3,976,022 4,016,836 4,000,000 4,000,000 4,000,113 4,026,985 3,999,237 (a)

Police Pension Fund 4,555,672 4,475,827 5,198,230 5,732,214 6,786,000 6,863,286 9,666,169 10,155,128 8,023,285 (a)

Firefighters' Pension Fund 4,350,590 4,123,258 4,558,644 5,071,169 6,131,000 6,201,607 8,003,348 8,341,708 7,106,024 (a)

City Collections 45,406,935 48,301,909 56,999,595 61,499,574 66,507,770 68,036,947 69,226,057 67,424,366 63,351,265 -

Library General Fund 7,022,286 7,645,194 8,324,803 9,026,026 9,815,584 9,877,416 10,243,781 9,627,454 8,780,838 (a)

Library Debt Service 410,116 376,314 371,867 378,388 379,221 380,373 381,470 384,552 188,476 (a)

Library Collections 7,432,402 8,021,508 8,696,670 9,404,414 10,194,805 10,257,789 10,625,251 10,012,007 8,969,314 -

Total Collections within the

Fiscal Year of the Levy 52,839,337 56,323,417 65,696,265 70,903,988 76,702,575 78,294,736 79,851,308 77,436,373 72,320,579 -

Collections in Subsequent Years 217,032 314,249 409,303 374,111 5,217 305,674 22,942 1,270 14,996 -

TOTAL COLLECTIONS TO DATE 53,056,369$ 56,637,666$ 66,105,568$ 71,278,099$ 76,707,792$ 78,600,410$ 79,874,250$ 77,437,643$ 72,335,575$ -$

LEVY AS EXTENDED 52,959,708$ 57,235,390$ 66,523,823$ 71,402,238$ 76,874,596$ 78,727,308$ 79,999,685$ 77,623,800$ 72,749,784$ -$

PERCENT COLLECTED 100.2% 99.0% 99.4% 99.8% 99.8% 99.8% 99.8% 99.8% 99.4% -

(a) 2012 property taxes will not be collected until 2013.

Data Source

City Records


PROPERTY TAX LEVIES AND COLLECTIONS


- 200 -


TAXABLE SALES BY CATEGORY


Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

General Merchandise 4,832,180$ 4,691,280$ 4,613,183$ 5,627,097$ 4,786,817$ 4,578,604$ 4,285,819$ 4,405,522$ 4,022,235$ 4,488,595$

Food 3,700,241 2,879,641 3,070,714 3,010,719 2,792,215 2,733,792 2,549,515 2,600,531 2,705,129 2,709,986

Drinking and Eating Places 2,917,569 3,203,140 3,610,227 3,863,971 3,971,390 4,010,502 3,768,676 3,876,977 4,203,064 4,416,494

Apparel 1,720,939 3,287,181 4,512,158 4,994,054 4,949,931 5,261,501 5,563,392 6,299,977 7,225,649 7,393,788

Furniture & H.H. & Radio 3,228,881 3,183,620 3,238,120 3,557,010 2,964,282 2,477,460 2,150,787 2,414,031 2,206,865 2,145,549

Lumber, Building Hardware 1,654,229 1,811,677 1,590,293 1,662,625 1,526,113 1,314,431 1,112,428 1,085,156 1,046,601 923,296

Automobile and Filling Stations 3,092,488 4,092,257 4,421,149 5,192,752 5,276,703 5,124,620 4,751,067 5,443,285 5,706,600 5,785,355

Drugs and Miscellaneous Retail 4,167,899 4,517,067 4,941,847 5,271,673 5,333,786 5,389,246 5,241,543 5,626,786 6,021,825 6,255,034

Agriculture and All Others 3,283,504 3,914,028 4,648,520 5,478,000 5,478,010 5,238,603 3,964,160 3,861,097 4,251,063 4,148,186

Manufacturers 506,024 827,691 1,163,118 1,440,956 1,225,058 1,116,480 997,547 1,022,239 1,008,757 969,660

TOTAL 29,103,953$ 32,407,581$ 35,809,328$ 40,098,857$ 38,304,305$ 37,245,239$ 34,384,934$ 36,635,601$ 38,397,788$ 39,235,943$

City's direct sales tax rate 1.00% 1.00% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25%

Data Source

City Records

Illinois Department of Revenue

- 201 -

City Regional

Fiscal Direct State Transportation

Year Rate Rate Authority Rate Total

2003 1.00% 6.25% 0.25% 7.50%

2004 1.00% 6.25% 0.25% 7.50%

2005 1.25% 6.25% 0.25% 7.75%

2006 1.25% 6.25% 0.25% 7.75%

2007 1.25% 6.25% 0.25% 7.75%

2008 1.25% 6.25% 0.75% 8.25%

2009 1.25% 6.25% 0.75% 8.25%

2010 1.25% 6.25% 0.75% 8.25%

2011 1.25% 6.25% 0.75% 8.25%

2012 1.25% 6.25% 0.75% 8.25%

Data Source

City and County Records


DIRECT AND OVERLAPPING SALES TAX RATES


- 202 -

RATIOS OF OUTSTANDING DEBT BY TYPE

(In Thousands of Dollars)


Governmental Activities Business-Type Activities Percentage

Fiscal General Total of

Year Obligation Tax Increment Installment Notes Illinois Developer Revenue Illinois Primary Personal Per

Ended Bonds Bonds/Notes Contracts Payable EPA Loans Agreements Bonds EPA Loans Government Income* Capita*

2003 84,245$ -$ 11,015$ 439$ 2,483$ 5,990$ 11,800$ 9,794$ 125,766$ 4.29% 0.80$

2004 85,325 7,140 10,915 1,541 2,400 5,635 11,600 9,401 133,957 4.57% 0.85

2005 78,210 11,710 10,715 4,535 2,281 300 11,400 8,996 128,147 3.47% 0.81

2006 101,350 10,325 10,545 4,212 2,159 200 38,635 8,579 176,005 4.77% 1.03

2007 92,370 8,820 10,125 3,779 2,034 100 37,100 8,149 162,477 4.41% 0.95

2008 167,920 21,135 9,485 5,825 1,906 - 36,400 7,708 250,379 6.79% 1.47

2009 178,420 23,110 8,405 6,290 1,775 - 35,630 8,251 261,881 5.72% 1.32

2010 167,180 20,715 7,640 10,598 1,640 - 34,825 10,681 253,279 4.33% 1.28

2011 155,250 18,960 6,800 8,140 1,502 - 33,995 9,932 234,579 4.01% 1.19

2012 147,040 17,265 2,720 6,018 1,360 - 32,770 9,245 216,418 3.70% 1.09

Note: Details of the City's outstanding debt can be found in the notes to financial statements.

* See the schedule of Demographic and Economic Information on page 207 for personal income and population data.


- 203 -


RATIOS OF GENERAL BONDED DEBT OUTSTANDING


Percentage of

Less: Amounts Estimated

General Available Actual Taxable

Fiscal Obligation In Debt Value of Per

Year Bonds Service Fund Total Property* Capita

2003 84,245$ 5,677$ 78,568$ 3.02% 0.50$

2004 85,325 6,866 78,459 2.68% 0.50

2005 78,210 7,175 71,035 2.23% 0.45

2006 101,350 7,446 93,904 2.67% 0.55

2007 92,370 7,359 85,011 2.24% 0.50

2008 167,920 5,150 162,770 4.06% 0.95

2009 178,420 771 177,649 4.21% 1.03

2010 167,180 2,135 165,045 3.94% 0.83

2011 155,250 1,531 153,719 3.90% 0.78

2012 147,040 1,824 145,216 4.04% 0.73


General obligation bonds represents only the primary government.

* See the schedule of Assessed Value and Actual Value of Taxable Property on page 195 for

property value data.


- 204 -


DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

December 31, 2012

Percentage City ofDebt Applicable Aurora

Gross to the City of ShareGovernmental Unit Debt Aurora (2) of Debt

City of Aurora -$ 100.00% -$

School District #101 99,400,000 9.41% 9,353,540School District #129 107,935,000 52.43% 56,590,321School District #131 98,162,519 84.94% 83,379,244School District #200 194,780,000 0.05% 97,390School District #204 315,300,000 33.04% 104,175,120School District #302 111,952,771 3.82% 4,276,596School District #308 403,961,021 1.12% 4,524,363Community College #502 260,980,000 3.75% 9,786,750Community College #516 39,191,775 17.87% 7,003,570Kane County 88,155,000 12.03% 10,605,047Kane County Forest Preserve District 233,685,866 12.03% 28,112,410DuPage County 256,370,000 4.26% 10,921,362DuPage County Forest Preserve District 235,078,071 4.26% 10,014,326Batavia Library District 4,305,000 2.24% 96,432Batavia Park District 5,575,000 6.60% 367,950Fox Valley Park District 67,654,265 71.81% 48,582,528Naperville Park District 20,480,000 2.21% 452,608

Total Overlapping Debt 2,542,966,288 388,339,557

TOTAL DIRECT AND OVERLAPPING DEBT 2,542,966,288$ 388,339,557$

Source: DuPage and Kane Counties. Kendall and Will Counties have been excluded since theyare approximately 10% of the City's 2011 EAV.(2) Percentages are based on 2011 EAVs, the latest available.

- 205 -


SCHEDULE OF LEGAL DEBT MARGIN

December 31, 2012

Chapter 65, Section 5/8-5-1 of the Illinois Compiled Statutes governs computation of the legal debt margin.

"The General Assembly may limit by law the amount and require referendum approval of debt to be incurred

by home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following

percentages of the assessed value of its taxable property....(2) if its population is more than 25,000 and less

than 500,000 an aggregate of one percent....indebtedness which is outstanding on the effective date (July 1,

1971) of this constitution or which is thereafter approved by referendum...shall not be included in the foregoing

percentage amounts."

To date, the General Assembly has set no limits for home rule municipalities.

The City is a home rule municipality.

- 206 -

Water Revenue Bonds Golf Revenue Bonds

Water Golf

Charges Less: Net Charges Less: Net

Fiscal and Operating Available Debt Service and Operating Available Debt Service

Year Other Expenses Revenue Principal Interest Coverage Other Expenses Revenue Principal Interest Coverage

2003 26,034$ 19,648$ 6,386$ 100$ 383$ 13$ 1,866$ 1,676$ 190$ 100$ 285$ -$

2004 26,052 19,537 6,515 100 378 13.63 1,846 1,852 (6) 100 278 (0.02)

2005 28,383 18,958 9,425 100 373 19.93 2,008 2,093 (85) 150 271 (0.20)

2006 27,618 21,934 5,684 6,100 (a) 566 0.85 1,946 1,887 59 150 261 0.14

2007 29,890 17,415 12,475 1,385 1,519 4.30 2,060 2,032 28 150 251 0.07

2008 27,774 23,491 4,283 550 1,467 2.12 1,917 1,611 306 200 240 0.70

2009 26,285 22,504 3,781 570 1,663 1.69 1,890 1,661 229 200 228 0.54

2010 27,418 24,372 3,046 605 1,627 1.36 1,901 1,870 31 205 215 0.07

2011 27,492 19,924 7,568 625 1,589 3.42 1,720 1,597 123 250 204 0.27

2012 30,426 22,151 8,275 660 1,550 3.74 1,821 1,799 22 540 190 0.03


Water Charges and Other includes investment earnings.

Golf Charges and Other includes investment earnings.

Operating Expenses do not include interest, depreciation or intergovernmental expense.

Golf Revenue Bonds were issued in 2000.

(a) $6,100 of the revenue bonds were called early and paid during 2006.


PLEDGED-REVENUE COVERAGE



- 207 -

(c) (a)

(b) Elementary & (a) Per

Effective (a) Secondary Personal Capita (d)

Fiscal (a) Buying Median School Income Personal Unemployment

Year Population Income Age Enrollment (in thousands) Income Rate

2003 157,267 ** N/A N/A 36,326 3,480,476$ 22,131$ 8.1%

2004 157,267 48,473 N/A 41,722 3,480,476 22,131 7.3%

2005 157,267 N/A N/A 46,875 3,688,305 23,453 6.3%

2006 170,490 * N/A 29 49,153 3,998,502 23,453 4.5%

2007 170,490 * N/A 30 54,103 3,998,502 23,453 5.0%

2008 170,490 * N/A 30 59,514 3,998,502 23,453 6.6%

2009 171,782 * N/A 30 51,034 4,582,113 26,674 10.8%

2010 197,899 N/A 30 47,432 5,848,114 29,551 10.9%

2011 197,899 N/A 31 50,183 5,848,114 29,551 9.5%

2012 197,899 N/A 31 44,809 5,848,114 29,551 8.6%

N/A not available

* Estimated

** Special Census

Note: Personal income is based on the census.

(a) U.S. Department of Commerce, Bureau of the Census.

(b) "Sales and Marketing Management" (private publication). "Effective buying income" (EBI) is defined

as money income less personal tax and certain nontax payments, such as Social Security contributions.

EBI is a measure of median household disposable/after-tax income.

(c) Private school and public school district administration offices.

(d) Bureau of Labor Statistics.


DEMOGRAPHIC AND ECONOMIC INFORMATION


- 208 -

Percent of Percent of

Total City Total City

Employer Employees Rank Population Employer Employees Rank Population

Caterpillar, Inc. 2,500 1 1.26% Caterpillar, Inc. 3,000 1 2.10%

Rush Copley Medical Center 2,000 2 1.01% Rush Copley Medical Center 925 9 0.65%

School District 129 1,500 (a) 3 0.76% School District 129 1,153 (a) 4 0.81%

School District 131 1,320 (a) 4 0.67% School District 131 950 (a) 7 0.66%

Provena Mercy Center 1,300 5 0.66% Provena Mercy Center 945 8 0.66%

City of Aurora 1,280 6 0.65% Dreyer Medical Clinic 1,000 (a) 5 0.70%

Dreyer Medical Clinic 1,200 (a) 7 0.61% School District 204 1,200 (a) 3 0.84%

School District 204 1,200 8 0.61% Hollywood Casino 1,600 2 1.12%

Hollywood Casino 1,009 9 0.51% Metropolitan Insurance Cos. 600 12 0.42%

MetLife, Inc 720 10 0.36% Farmers Insurance Group 598 13 0.42%

Hipp Temporary Skills 500 14 0.35%

U.S. Postal Service 1,000 6 0.70%

Westell, Inc 600 11 0.42%

L % D Group 716 10 0.50%

TOTAL 14,029 7.10% 14,787 10.35%

(a) Administrative office and majority of school sites located in the City. Limited number of school sites located in adjacent areas.

Data Source

2002 Illinois Manufacturers Directory 2002 Illinois Services Directory and telephone survey.

2011 Illinois Manufacturers Directory 2011 Illinois Services Directory and telephone survey.

2012 2003


PRINCIPAL EMPLOYERS

Current Year and Nine Years Ago

- 209 -

Function/Program 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

General Government

Executive 71 67 68 62 62 66 65 45 37 37

Law* - - - - - - - 5 5 5

Administrative Services* - - - - - - - 40 39 39

Community Services and Outreach 19 19 19 62 67 67 68 64 21 22

Development Services* - - - - - - - 51 50 52

Community Development 69 70 71 51 51 50 48 - - -

Neighborhood Standards - - - 40 43 44 45 - - -

Finance 52 51 53 37 37 39 39 27 26 26

Information Technology - - - 19 24 27 25 - - -

Public Safety

Police

Officers 277 282 288 296 299 301 302 301 289 289

Civilians 109 113 115 108 109 109 110 102 100 88

Fire

Firefighters and Officers 210 207 207 207 207 207 207 205 195 195

Civilians 4 7 7 6 6 6 6 5 5 5

Public Works

Administration 3 3 3 3 3 4 4 - - -

Public Property 63 63 63 65 65 65 64 - - -

Engineering 25 26 26 27 27 28 26 - - -

Parks and Recreation 31 32 32 22 23 26 26 - - -

Youth Services 43 42 41 - - - - - - -

Operations Department* - - - - - - - 124 117 116

Other City Funds 158 158 166 161 162 158 155 147 136 134

Library 98 98 108 108 115 116 118 118 120 119

TOTAL FULL-TIME EQUIVALENT

EMPLOYEES 1,229 1,236 1,265 1,273 1,300 1,313 1,308 1,234 1,140 1,127

Note: Blanks in certain function/program categories constitutes reclassification of departments.

*New department for 2010

Data Source

City budget office


FULL-TIME EQUIVALENT EMPLOYEES


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Public Safety

Police

Physical Arrests 10,928 11,139 12,258 12,388 10,987 11,730 12,073 9,668 8,463 9,515

Citations Issued 25,195 25,927 30,487 26,289 20,345 27,147 25,768 17,511 13,718 21,630

Fire

Ambulance Calls 9,022 9,778 10,307 10,951 11,835 11,849 11,596 11,504 11,768 12,307

Fires Calls 3,925 3,979 4,186 4,166 3,459 4,487 3,943 3,600 3,349 3,625

Public Works (a)

Quality Street Repairs (lane miles) - - - 15 17 5 7 8 6 -

Pothole Repairs - - - 22,000 10,841 30,000 27,600 24,000 23,000 7,840


Residential Construction (number of units) 1,513 1,195 990 741 352 156 54 86 67 74

Commercial Construction (number of units) 40 59 35 33 58 44 13 13 7 27

Library

Number of Books 470,893 504,687 514,634 476,179 433,067 449,820 537,245 565,000 546,174 464,569

Number of Registered Borrowers 46,523 57,805 61,196 62,908 62,541 64,086 67,854 65,296 66,964 65,535

Municipal Water Distribution System

Number of Consumer Accounts 45,097 46,131 46,876 47,563 47,951 48,161 48,235 48,406 48,375 48,483

Total Annual Billed (gallons) 4,549/MM 4,527/MM 4,959/MM 4,653/MM 4,674/MM 4,464/MM 4,464/MM 4,315/MM 4,390/MM 4,603/MM

Total Annual Pumpage (gallons) 6,053/MM 6,140/MM 6,500/MM 6,079/MM 6,261/MM 6,106/MM 5,927/MM 5,684/MM 6,024/MM 6,346/MM

Daily Average Pumpage (gallons) 16,601/M 16,821/M 18,809/M 16,655/M 17,153/M 16,728/M 16,239/M 15,573/M 16,504/M 17,386/M

Daily Average Per Capita

Pumpage (gallons) 134 134 138 128 104 102 102 79 83 88

Daily Pumpage Capacity (gallons) 39,520/M 40,500/M 40,500/M 40,500/M 40,500/M 40,500/M 40,500/M 40,500/M 40,500/M 40,500/M

(a) Public works data is not available for years before 2006.

Data Source

Various City departments


OPERATING INDICATORS


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Public Safety

Police

Stations 2 2 2 2 2 2 2 2 2 1

Area Patrols 3 3 3 3 3 3 3 3 3 3

Fire

Fire Stations 9 9 9 9 9 9 9 9 9 9

Fire Engines (a) 16 18 18 17 17 17 17 17 17 17

Public Works

Streets (center line miles) 525 560 566 573 575 578 578 578 578 574

Water

Watermain (miles) 671 671 671 692 - - - 755 757 661

Daily Storage Capacity (gallons) 23,760/M 23,760/M 23,760/M 23,760/M 23,760/M 23,760/M 23,760/M 23,760/M 23,760/M 23,760/M

Wastewater

Sanitary Sewers (miles) 396 480 480 480 480 489 499 493 496 488

Storm Sewers (miles) 297 509 509 509 601 613 655 682 702 706

(a) The fire engine total includes the following vehicle types: pumper truck, ladder truck and emergency one custom pumper truck.

Data Source

Various City departments


CAPITAL ASSET STATISTICS


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ADDITIONAL DISCLOSURES REQUIRED BY

SEC RULE 15c2-12

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2012 DISCLOSURE

Relating to

CITY OF AURORA

KANE, DUPAGE, KENDALL & WILL COUNTIES, ILLINOIS

$31,070,000 General Obligation Bonds, Series 2006

$4,760,000 Refunding Debt Certificates, Series 2006

$22,075,000 General Obligation Refunding Bonds, Series 2007

$85,500,000 General Obligation Bonds, Series 2008

$15,460,000 Taxable General Obligation Bonds, Series 2009A

$5,590,000 General Obligation Bonds, Series 2009B

$9,660,000 General Obligation Refunding Bonds, Series 2011

$19,200,000 General Obligation Library Bonds, Series 2012A

$6,905,000 General Obligation Refunding Bonds, Series 2012B

$3,165,000 General Obligation Refunding Bonds, Series 2012C

and

$3,095,000 Refunding Debt Certificates, Series 2012D

as described in the summaries of the Undertakings in the

OFFICIAL STATEMENTS DATED

July 12, 2006

December 19, 2006

November 16, 2007

May 15, 2008

August 5, 2009

October 21, 2011

and

August 30, 2012,

Respectively

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Retail Activity

1% Retailers’ Occupation, Service Occupation, and Use Taxes (1)

Fiscal Year Ending

December 31

State Sales Tax

Distribution (2)

Annual Percent

Change + ( - )

2003 18,078,519 2.20% (3)

2004 20,112,094 11.25%

2005 21,014,769 4.49%

2006 22,683,925 7.94%

2007 22,027,898 -2.89%

2008 21,667,726 -1.64%

2009 19,778,567 -8.72%

2010 21,111,296 6.74%

2011 22,585,797 6.98%

2012 23,515,202 4.11%

Growth from 2003 to 2012 30.07%

Notes: (1) Source: the City. (2) Tax distributions are based on records of the Illinois Department of Revenue relating to the 1% municipal

portion of the Retailers’ Occupation, Service Occupation and Use Tax, collected on behalf of the City. The

municipal 1% includes tax receipts from the sale of food and drugs which are not taxed by the State. (3) The 2003 percentage is based on a 2002 sales tax of $17,688,784.

PROPERTY ASSESSMENT AND TAX INFORMATION

City Equalized Assessed Valuation (1)

Property Class 2007 2008 2009 2010 2011

Residential 3,119,661,075$ 3,250,613,934$ 3,215,060,697$ 3,017,867,140$ 2,730,761,797$

Farm 1,170,473 1,244,196 1,367,617 1,397,339 1,514,150

Commercial 610,906,155 664,325,891 652,132,768 616,823,178 582,824,054

Industrial 281,084,086 303,808,658 317,484,799 301,946,177 282,100,080

Railroad 749,480 853,846 1,022,515 1,107,906 1,334,424

Total 4,013,571,269 4,220,846,525 4,187,068,396 3,939,141,740 3,598,534,505

Total by County

Kane County 1,907,177,864 2,001,714,381 1,959,260,286 1,809,362,652 1,625,951,658

DuPage County 1,679,678,537 1,790,478,973 1,808,716,577 1,728,074,480 1,606,824,629

Kendall County 123,477,670 131,450,428 130,434,946 120,944,577 112,030,593

Will County 303,237,198 297,202,743 288,656,587 280,760,031 253,727,625

Total 4,013,571,269 4,220,846,525 4,187,068,396 3,939,141,740 3,598,534,505

Percent Change 5.84% (2) 5.16% -0.80% -5.92% -8.65%

Notes: (1) Source: Offices of the Kane, DuPage, Kendall and Will County Clerks.

(2) Percentage change is based on 2006 EAV of $3,791,995,386. .

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Kane County Representative Tax Rates (1)

(Per $100 EAV)

2007 2008 2009 2010 2011

The City:

General 1.1925$ 1.1949$ 1.1333$ 1.0228$ 1.1560$

I.M.R.F. - - - 0.0688 0.1123

Police Pension 0.1692 0.1608 0.2309 0.2578 0.0756

Firefighters' Pension 0.1528 0.1453 0.1912 0.2117 0.2230

Bonds and Interest 0.1007 0.0957 0.0965 0.1026 0.1975

Library 0.2546 0.2448 0.2542 0.2548 0.2503

Prior Period Adjustment 0.0455 0.0635 0.0046 0.0497 -

Total City Rates (2) 1.9153$ 1.9050$ 1.9107$ 1.9682$ 2.0147$

Kane County 0.3322 0.3336 0.3398 0.3730 0.3990

Kane County Forest Preserve 0.1974 0.1932 0.1997 0.2201 0.2609

Aurora Township 0.1449 0.1450 0.1486 0.1664 0.1882

Aurora Township Road Funds 0.0690 0.0691 0.0703 0.0764 0.0860

Fox Valley Park District 0.4037 0.4014 0.4122 0.4803 0.5286

Unit School District 129 4.1252 4.1225 4.1835 4.2740 5.1603

Community College-District 516 0.3950 0.3995 0.4043 0.4070 0.4710

Total Tax Rates (3) 7.5827$ 7.5693$ 7.6691$ 7.9654$ 9.1087$

Notes: (1) Source: Kane County Clerk’s Office and the City.

(2) The City is a home-rule municipality and, based on the 1970 Illinois Constitution, has no statutory tax rate limits.

(3) Representative tax rates for other government units are from Aurora Township tax code 5, which represents 35%

of the City’s 2011 EAV in Kane County.

DuPage County Representative Tax Rates (1)

(Per $100 EAV)

2007 2008 2009 2010 2011

The City:

General 1.2425$ 1.2070$ 1.1488$ 1.0725$ 1.1676$

Bond & Interest 0.1010 0.0954 0.0965 0.1026 0.1123

I.M.R.F. - - - 0.0696 0.0764

Police Pension 0.1669 0.1624 0.2250 0.2604 0.2253

Firefighters' Pension 0.1507 0.1468 0.1862 0.2139 0.1995

Library 0.2546 0.2473 0.2543 0.2548 0.2503

Total City Rates (2) 1.9157$ 1.8589$ 1.9108$ 1.9738$ 2.0314$

DuPage County 0.1651 0.1557 0.1554 0.1659 0.1773

DuPage County Forest Preserve 0.1187 0.1206 0.1217 0.1321 0.1414

Naperville Township 0.0423 0.0420 0.0419 0.0454 0.0483

Naperville Township Road Funds 0.0379 0.0376 0.0370 0.0401 0.0411



Community College-District 502 0.1888 0.1858 0.2127 0.2349 0.2495

Total Tax Rates (3) 7.3672$ 7.2854$ 7.4001$ 7.9642$ 8.4430$

Notes: (1) Source: DuPage County Clerk and the City.

(2) The City is a home-rule municipality and based on the 1970 Illinois Constitution has no statutory tax rate limits.

(3) Representative tax rates for other government units are from Naperville Township tax code 7045, which represents 66% of the City’s 2011 EAV in DuPage County.

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Will County Representative Tax Rates (1)

(Per $100 EAV)

2007 2008 2009 2010 2011

The City:

Total City Rates (2) $1.9159 $1.8392 $1.9097 $1.9674 $1.9052

Will County 0.4826 0.4751 0.4833 0.5077 0.5351

Will County Building Commission 0.0117 0.0191 0.0191 0.0197 0.0200

Will County Forest Preserve 0.1424 0.1445 0.1519 0.1567 0.1693

Wheatland Township 0.0303 0.0314 0.0319 0.0331 0.0328

Wheatland Township Road & Bridge 0.0412 0.0427 0.0433 0.0474 0.0503

City of Aurora SSA 34-X 0.3200 0.3172 0.3216 0.3529 0.4066


School District 308-U 5.0600 5.0600 5.0600 5.8245 6.6317

Community College District 516 0.4158 0.3842 0.4052 0.4131 0.4309

Total Rates $8.8331 $8.7049 $8.8461 $9.7896 $10.6716

Notes: (1) Source: Will County Clerk’s Office and the City.

(2) The City is a home-rule municipality and, based on the 1970 Illinois Constitution, has no statutory tax rate limits. (3) Representative tax rates for other government units are from Wheatland Township tax code 0751, which represents

the largest portion of the City’s 2011 EAV in Will County.

City Tax Extensions and Collections

(Includes Road and Bridge Levy, Excludes Library)

Levy Coll. Taxes

Year Year Extended (1) Amount (2) Percent Amount (3) Percent

2004 2005 49,168,579 49,499,767 100.67% 49,774,378 101.23%

2005 2006 (4) 58,402,714 57,680,483 98.76% 58,037,291 99.37%

2006 2007 62,607,912 62,173,915 99.31% 62,501,611 99.83%

2007 2008 67,328,337 67,176,454 99.77% 67,179,966 99.78%

2008 2009 69,106,548 68,721,377 99.44% 69,183,939 100.11%

2009 2010 70,028,262 69,894,824 99.81% 69,917,907 99.84%

2010 2011 68,267,554 68,101,873 99.76% 68,125,812 99.79%

2011 2012 64,434,095 64,036,650 99.38% 64,036,650 99.38%

Current Collections Total Collections

Notes: (1) “Taxes Extended” have been adjusted for abatements and Township Road and Bridge.

(2) “Current Collections” in both Kane and DuPage Counties include taxes paid under protest.

(3) “Total Collections” include back taxes, penalties, etc.

(4) After the effect of a prior-year adjustment.

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Principal City Taxpayers (1)

County Taxpayer Name Business/Service 2011 EAV (2)

Kane Simon/Chelsea Chicago Development, LLC Shopping Center 38,928,626$

DuPage Westfield Shoppingtown Shopping Center 34,830,640

DuPage/Kane Liberty Illinois LP Real Estate 31,564,378

Kane Toyota Motor Sales, U.S.A., Inc. Automotive 23,106,942

Kane Aurora Industrial Holding Company, LLC Real Estate 19,539,015

DuPage AIMCO Apartments 14,260,790

DuPage Amli Residential Property Residential Property 12,322,520

DuPage Reliant Energy Aurora LP Industrial Property 9,540,310

DuPage Cabot Microelectronics Electronics 8,847,790

Kane Wal-Mart Real Estate Business Trust Retail 8,033,196

Total 200,974,207$

Ten Largest Taxpayers as Percent of City's 2011 EAV ($3,598,534,505) 5.58%

Notes: (1) Source: DuPage and Kane Counties. Kendall and Will Counties have been excluded since they consist of

approximately 10% of the City’s 2011 EAV.

(2) Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers listed contain multiple parcels, and it is possible that some parcels and their valuations have been overlooked. The 2011

EAV is the most current available.

House Building Permits Issued – Special Service Area 34

Year Permits

2006 128

2007 14

2008 1

2009 1

2010 0

2011 0

2012 0

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Special Service Area Number 34 Valuation (1)

2008 2009 2010 2011

Total Equalized Assessed Valuation $343,825,924 $335,527,779 $323,675,774 $294,265,892

Note: (1) Source: Kendall and Will Counties.

DEBT INFORMATION

General Obligation Debt Summary – By Issue (1,2)

(Principal Only)

Issue

Outstanding

Principal

Series 2006 (3) (4) 26,925,000$

Series 2007 (3) 8,190,000

Series 2008 (3) (4) 74,860,000

Series 2009A (3) 12,915,000

Series 2009B (3) 4,665,000

Series 2011 (3) (4) 8,955,000

Series 2012A 19,200,000

Series 2012B (3) 6,905,000

Series 2012C (3) 3,165,000

Subtotal 165,780,000

Less self-supporting debt (86,875,000)

Total property tax supported debt 78,905,000$

Notes: (1) Source: the City.

(2) As of December 31, 2012.

(3) Expected to be abated, in whole or in part, by the application of real estate transfer taxes, home-rule sales taxes, gaming taxes, stormwater management fees, water and sewer service fees, developer contributions, and other sources.

(4) A portion ($11,865,000) of Series 2006 is supported by property tax. A portion ($45,205,000) of Series 2008 is property tax

supported. A portion ($2,635,000) of Series 2011 is property tax supported.

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-191-

City General Obligation Bonds (1)

(Principal Only) Due

Dec. 30

Series

2006 (2)

Series

2007 (2)

Series

2008 (2)

Series

2009A (2)

Series

2009B (2)

Series

2011 (2)

2013 900,000$ 2,680,000$ 2,860,000$ 920,000$ 335,000$ 1,225,000$

2014 935,000 2,665,000 1,650,000 940,000 345,000 1,330,000

2015 965,000 2,705,000 1,695,000 960,000 350,000 1,360,000

2016 1,015,000 140,000 1,765,000 985,000 360,000 1,405,000

2017 1,060,000 - 1,835,000 1,010,000 370,000 1,445,000

2018 1,105,000 - 1,910,000 1,040,000 380,000 1,335,000

2019 1,150,000 - 1,985,000 1,075,000 395,000 330,000

2020 1,205,000 - 2,065,000 1,110,000 405,000 (3) 330,000

2021 1,255,000 - 2,160,000 1,150,000 420,000 (3) 95,000 (5)

2022 1,315,000 - 2,255,000 1,195,000 420,000 (4) 100,000 (5)

2023 1,380,000 - 2,355,000 1,240,000 440,000 (4) -

2024 1,445,000 - 2,460,000 1,290,000 445,000 (4) -

2025 1,520,000 - 2,575,000 - - -

2026 1,585,000 - 2,695,000 - - -

2027 810,000 - 2,825,000 - - -

2028 850,000 - 2,960,000 - - -

2029 885,000 - 3,100,000 - - -

2030 930,000 - 3,245,000 - - -

2031 970,000 - 3,400,000 - - -

2032 1,025,000 - 3,570,000 - - -

2033 1,070,000 - 3,750,000 - - -

2034 1,125,000 - 3,935,000 - - -

2035 1,185,000 - 4,130,000 - - -

2036 1,240,000 - 4,340,000 - - -

2037 4,555,000 - - -

2038 4,785,000 - -

26,925,000$ 8,190,000$ 74,860,000$ 12,915,000$ 4,665,000$ 8,955,000$

Due

Dec. 30

Series

2012A

Series

2012B(2)

Series

2012C(2)

Total

Debt Amount Percent

2013 145,000$ 480,000$ 600,000$ 10,145,000$ 10,145,000$ 6.12%

2014 270,000 525,000 625,000 9,285,000 19,430,000 11.72%

2015 270,000 535,000 635,000 9,475,000 28,905,000 17.44%

2016 270,000 540,000 645,000 7,125,000 36,030,000 21.73%

2017 270,000 555,000 660,000 7,205,000 43,235,000 26.08%

2018 280,000 570,000 - 6,620,000 49,855,000 30.07%

2019 275,000 580,000 - 5,790,000 55,645,000 33.57%

2020 290,000 595,000 - 6,000,000 61,645,000 37.18%

2021 540,000 605,000 - 6,225,000 67,870,000 40.94%

2022 550,000 625,000 - 6,460,000 74,330,000 44.84%

2023 660,000 640,000 - 6,715,000 81,045,000 48.89%

2024 675,000 655,000 - 6,970,000 88,015,000 53.09%

2025 690,000 - - 4,785,000 92,800,000 55.98%

2026 710,000 - - 4,990,000 97,790,000 58.99%

2027 725,000 - - 4,360,000 102,150,000 61.62%

2028 745,000 - - 4,555,000 106,705,000 64.37%

2029 760,000 - - 4,745,000 111,450,000 67.23%

2030 780,000 - - 4,955,000 116,405,000 70.22%

2031 805,000 - - 5,175,000 121,580,000 73.34%

2032 825,000 - - 5,420,000 127,000,000 76.61%

2033 850,000 - - 5,670,000 132,670,000 80.03%

2034 875,000 - - 5,935,000 138,605,000 83.61%

2035 900,000 - - 6,215,000 144,820,000 87.36%

2036 925,000 - - 6,505,000 151,325,000 91.28%

2037 955,000 - - 5,510,000 156,835,000 94.60%

2038 990,000 - - 5,775,000 162,610,000 98.09%

2039 1,020,000 - - 1,020,000 163,630,000 98.70%

2040 1,055,000 - - 1,055,000 164,685,000 99.34%

2041 1,095,000 - - 1,095,000 165,780,000 100.00%

19,200,000$ 6,905,000$ 3,165,000$ 165,780,000$


(2) Expected to be abated, in whole or in part, by the application of real estate transfer taxes, home-rule sales taxes, gaming taxes, stormwater

management fees, water and sewer fees, developer contribution, and other sources.

(3) Term due December 30, 2021.



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-192-

Detailed Overlapping Bonded Debt (1)

(As of December 31, 2012)

Outstanding

Schools: Debt Percent (2) Amount

School District Number 101 93,145,000$ 9.41% 8,764,945$

School District Number 129 107,935,000 52.43% 56,590,321


School District Number 200 194,780,000 0.05% 97,390




Community College Number 502 260,980,000 3.75% 9,786,750

Community College Number 516 113,332,893 17.87% 20,252,588

Total Schools: 283,415,599$

Other:

DuPage County 256,370,000$ 4.26% 10,921,362$

Kane County 78,550,000 12.03% 9,449,565

DuPage County Forest Preserve District 221,080,485 4.26% 9,418,029

Kane County Forest Preserve District 208,735,866 12.03% 25,110,925

Batavia Library District 3,750,000 2.24% 84,000

Batavia Park District 4,095,000 6.60% 270,270

Fox Valley Park District 61,727,265 71.81% 44,326,349

Naperville Park District 22,050,000 2.21% 487,305

Total Other 100,067,805$

Total Schools and Other Overlapping Bonded Debt: 383,483,404$

Applicable to City

Notes: (1) Source: DuPage and Kane Counties. Kendall and Will Counties have been excluded because they consist of

approximately 10% of the City’s 2011 EAV. (2) Percentages are based on 2011 EAV, the most recent available.

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Statement of Bonded Indebtedness (1)


Amount Applicable

Equalized

Assessed

Estimated

Actual

Per Capita

(2010 Pop.

197,899)

City EAV of Taxable Property, 2011 3,598,534,505$ 100.00% 33.33% 18,183.69$

Estimated Actual Value, 2011 10,795,603,515$ 300.00% 100.00% 54,551.08$

Direct Bonded Debt (2) 165,780,000$ 4.61% 1.54% 837.70$

Paid From Non-Property Tax Sources (86,875,000) -2.41% -0.80% (438.99)

Net Direct Debt (2) 78,905,000$ 2.20% 0.74% 398.71$

Overlapping Bonded Debt:

Schools 283,415,599$ 7.88% 2.63% 1,432.12$

Other 100,067,805 2.78% 0.93% 505.65

Total Overlapping Bonded Debt 383,483,404$ 10.66% 3.56% 1,937.77$

Total Direct and Overlapping Bonded Debt (2) 462,388,404$ 12.86% 4.30% 2,336.48$

Ratio To

Notes: (1) Source: Kane and DuPage County Clerks.

(2) Does not include water and sewer revenue bonds.

Special Service Area 34

Installment Contract and Debt Certificates (1)

(Principal Only)

Calendar Series 2006 Series 2012D

Year Due Dec. 30 Due Dec. 30 Total Debt Amount Percent

2013 520,000 460,000 980,000 980,000 16.85%

2014 560,000 470,000 1,030,000 2,010,000 34.57%

2015 555,000 455,000 1,010,000 3,020,000 51.93%

2016 570,000 500,000 1,070,000 4,090,000 70.34%

2017 305,000 235,000 540,000 4,630,000 79.62%

2018 105,000 280,000 385,000 5,015,000 86.24%

2019 105,000 300,000 405,000 5,420,000 93.21%

2020 - 395,000 395,000 5,815,000 100.00%

Total 2,720,000$ 3,095,000$ 5,815,000$

Cumulative Principal

to be Retired

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-194-

FINANCIAL INFORMATION

Statement of Net Assets

Government Activities

2008 2009 2010 2011 2012

Assets:

Cash and Investments 197,615,207$ 147,481,074$ 133,242,577$ 145,373,765$ 140,988,737$

Receivables, Net of Allowance:

Property Taxes:

General and Pension Levies 67,678,790 71,424,540 68,635,680 63,850,924 64,815,751

Special Service Area Levies 1,369,892 1,359,854 1,472,964 1,482,620 1,427,567

Other Taxes 14,493,977 15,986,157 19,285,335 18,770,481 18,271,596

Loans Receivable 3,060,404 3,137,926 2,971,808 2,825,291 462,166

Rental Fees 19,209 113,857 26,707 88,387 825,278

Development Participation 3,015,000 2,015,000 1,045,000 - -

Miscellaneous 11,697,136 12,447,814 16,821,683 14,152,344 11,627,277

Deferred Charges/Prepaid Expenses 1,563,353 1,437,188 1,285,260 1,319,271 -

Due From Other Governments 5,614,036 6,194,982 5,725,433 6,617,370 6,944,557

Due to/from Other Funds - (127,476) 84,316 - -

Property Held for Resale - - - 452,616 337,695

Prepaid Items - - - - 111,402

Restricted Assets:

Restricted Cash and Investments 1,018,460 1,083,435 1,025,935 1,074,260 -

Capital Assets:

Non-Depreciable 198,580,532 164,750,317 187,921,068 174,455,165 178,705,204

Depreciable (Net of Accumulated

Depreciation) 286,085,150 377,649,617 385,585,180 389,084,262 392,136,758

Deferred Outflows:

Unamortized Loss of Refunding 596,226 674,898 606,162 254,232 421,130

Total Assets 792,407,372 805,629,183 825,735,108 819,800,988 817,075,118

Liabilities:

Accounts Payable 12,099,892 16,206,955 8,596,198 7,357,863 6,753,520

Accrued Payroll 8,092,316 9,530,566 9,353,088 9,770,536 10,900,746

Retainage Payable 4,283,060 1,137,427 415,943 509,958 1,180,298

Accrued Interest Payable 366,277 377,562 55,935 44,323 71,841

Other Unearned Revenue 13,746,661 16,345,221 19,468,967 24,256,564 16,657,742

Due to Fudiciary Funds - 851,332 317,789 102,854 25,421

Due to Other Governments 309,942 259,291 240,026 375,633 507,297

Deposits Payable 1,220,131 1,097,258 1,302,175 1,231,179 1,103,615

Noncurrent Liabilities:

Due Within One Year 15,264,029 16,908,398 18,178,479 17,716,891 19,598,918

Due in More Than One Year 259,107,405 276,676,724 274,329,391 267,084,717 258,438,318

Unamortized Bond Premium 2,206,618 1,811,040 - - -

Deferred Inflows:

Deferred Property Taxes 68,715,089 72,362,793 69,649,401 64,959,672 66,143,673

Total Liabilities 385,411,420 413,564,567 401,907,392 393,410,190 381,381,389

Net Position:

Investment in Capital Assets, Net of

Related Debt 360,690,801 373,628,698 403,827,533 400,801,028 418,850,676

Restricted For:

Working Cash 440,186 441,213 441,844 442,102 442,550

Economic Development 14,468,971 12,413,210 17,956,030 22,453,977 22,829,022

Streets and Transportation 6,481,385 6,387,830 6,703,361 8,949,374 10,650,562

Public Safety 20,673,332 18,627,653 17,079,971 19,140,246 18,852,666

Health and Welfare - - - 4,959,129 5,817,166

Sanitation 180,230 208,778 311,273 - -

Debt Service 11,879,494 770,788 2,135,047 1,530,550 1,823,882

Unrestricted (7,818,447) (20,413,554) (24,627,343) (31,885,608) (43,572,795)

Total Net Position 406,995,952$ 392,064,616$ 423,827,716$ 426,390,798$ 435,693,729$

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Statement of Activities


2008 2009 2010 2011 2012

Governmental Activities:

Net Function (Expense) Revenue:

General Government (15,129,865)$ (19,389,876)$ (9,411,079)$ (14,019,525)$ (16,019,582)$

Public Safety (93,427,891) (100,681,753) (101,718,844) (101,049,465) (105,237,726)

Streets and Transportation (33,958,497) (16,756,827) (4,089,275) (17,005,264) (12,754,355)

Health and Welfare (5,279,746) (5,469,475) 964,097 (757,966) (544,925)

Culture and Recreation (8,109,716) (8,215,166) (5,475,559) (4,571,614) 5,228,472

Sanitation (91,077) (177,500) - - -

Economic Development (13,329,304) (21,699,994) (11,858,643) (11,204,962) (14,673,809)

Interest (6,863,786) (9,193,424) (9,010,597) (8,690,804) (7,947,068)

Total Governmental Activities (176,189,882) (181,584,015) (140,599,900) (157,299,600) (151,948,993)

General Revenues:

Taxes:

Property and Replacement 79,201,939 82,845,255 85,791,335 82,425,418 79,226,198

Sales 39,760,622 36,434,096 38,657,829 40,911,661 41,957,531

Utility 10,756,816 10,362,550 10,125,801 10,231,247 10,163,505

Income 15,589,361 13,385,104 12,960,748 14,334,299 17,388,869

Real Estate Transfer 1,805,490 1,260,381 1,352,542 1,396,683 1,921,008

Food and Beverage 3,616,354 3,419,497 3,554,765 3,728,894 4,002,735

Gaming 12,729,676 11,809,475 10,624,299 10,241,111 9,044,541

Hotel/Motel 417,698 373,696 393,253 436,624 463,512

Other 830,184 855,881 913,533 905,063 1,019,382

Investment Income 4,114,618 1,375,305 294,340 405,583 197,272

Miscellaneous 1,593,393 1,008,521 1,160,863 1,003,328 1,306,832

Special Item - - - (6,957,229) (4,973,299)

Contributions 29,302,023 - - - -

Transfers 1,000,000 865,000 550,000 800,000 725,000

Total General Revenues 200,718,174 163,994,761 166,379,308 159,862,682 162,443,086

Change in Net Assets 24,528,292 (17,589,254) 25,779,408 2,563,082 10,494,093

Net Assets, Beginning 384,730,901 406,995,952 392,064,616 423,827,716 426,390,798

Prior Period Adjustment (2,263,241) 2,657,918 5,983,692 - (1,191,162)

Net Assets, Ending 406,995,952$ 392,064,616$ 423,827,716$ 426,390,798$ 435,693,729$

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General Fund

Balance Sheet

2008 2009 2010 2011 2012

Assets:

Cash and Investments 22,869,363$ 20,318,906$ 24,865,994$ 18,380,550$ 25,643,967$

Receivables:

Property Taxes 63,718,790 67,464,540 64,675,680 59,874,349 60,855,751

Due From Other Governments 235,029 328,748 442,526 246,113 324,947

Other Taxes 13,335,405 14,377,133 18,074,413 15,774,883 16,885,445

Other Receivables 8,569,396 9,138,577 9,010,458 9,123,302 8,632,129

Due from Other Funds - 216,009 37,190 106,159 -

Total Assets 108,727,983$ 111,843,913$ 117,106,261$ 103,505,356$ 112,342,239$

Liabilities and Equity:

Liabilities:

Accounts Payable 5,803,573$ 4,567,383$ 3,882,801$ 3,467,510$ 2,228,324$

Accrued Payroll 8,088,213 9,508,949 9,287,606 9,743,991 10,872,872

Due to Other Governments 162,765 206,245 172,123 313,919 485,856

Other Deferred Revenue 8,989,714 9,719,477 9,592,135 9,375,222 10,261,284

Due to Other Funds 2,885,000 851,332 9,974,681 102,854 6,525,421

Deferred Inflows:

Unavailable Revenue - Property Taxes 63,386,235 67,043,295 64,283,670 59,517,612 60,756,201

Fund Balance:

Unrestricted 19,412,483 19,947,232 19,913,245 20,984,248 21,212,281

Total Liabilities, Deferred Inflows, and Fund Equity 108,727,983$ 111,843,913$ 117,106,261$ 103,505,356$ 112,342,239$

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General Fund

Revenues and Expenditures

Property Tax 63,185,395$ 65,150,394$ 65,992,477$ 64,387,553$ 60,148,522$

Replacement Tax 4,339,489 3,567,756 3,908,752 3,394,432 3,385,646

Sales Tax 33,235,235 32,545,538 34,591,849 27,595,814 29,529,923

State Income Tax 15,589,361 13,385,104 12,960,748 14,334,299 17,388,869

Utility Tax 10,756,816 10,362,550 10,125,801 10,231,247 10,163,505

Food and Beverage Tax 3,616,354 3,419,497 3,554,765 3,728,894 4,002,735

Other Taxes 417,698 373,696 393,253 436,624 463,512

Other Governmental Sources 1,271,476 1,189,488 1,309,478 1,326,045 1,175,006

Licenses, Permits, Fees and Fines 8,237,026 6,496,137 8,330,828 7,901,634 9,510,126

Charges and Services 5,889,360 4,971,108 4,081,237 3,616,937 4,434,260

Investment Income 321,801 91,731 25,293 14,896 20,583

All Other 305,036 259,052 216,615 295,875 272,695

Total Revenues 147,165,047 141,812,051 145,491,096 137,264,250 140,495,382

Expenditures:

General Government 16,343,126 15,621,175 17,579,883 16,777,012 16,837,826

Public Safety 91,406,304 93,151,648 102,573,670 97,430,776 100,267,856

Streets and Transportation 15,193,832 13,934,641 11,839,036 10,180,929 10,440,927

Culture and Recreation 7,858,681 7,182,201 5,391,620 3,948,222 4,060,108

Other 12,312,992 11,387,637 8,140,874 7,856,308 8,360,632

Total Expenditures 143,114,935 141,277,302 145,525,083 136,193,247 139,967,349

Excess of Revenues Over/(Under)

Expenditures 4,050,112 534,749 (33,987) 1,071,003 528,033

Other Financing Sources:

Transfers Out - - - - (300,000)

Total Other Financing Sources - - - - (300,000)

Net Change

in Fund Balance 4,050,112 534,749 (33,987) 1,071,003 228,033

Fund Balance-January 1 15,362,371 19,412,483 19,947,232 19,913,245 20,984,248

Fund Balance - December 31 19,412,483$ 19,947,232$ 19,913,245$ 20,984,248$ 21,212,281$

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General Fund

Budget Financial Information

Budget

Twelve Months

Ending

12/31/13

Revenues:

Property Tax 61,377,900$

Replacement Tax 3,532,000

Sales Tax 36,535,000

State Income Tax 17,650,000

Utility Tax 10,405,000

Food and Beverage Tax 4,870,000

Other Taxes 562,600

Other Governmental Sources 1,425,700

Licenses, Permits, Fees and Fines 5,480,700

Charges for Services 5,554,000

Investment Income 105,000

All Other 453,401

Total Revenues 147,951,301

Expenditures:

General Government 18,179,171

Public Safety 104,717,121

Streets and Transportation 11,812,255

Health and Welfare 6,962,191

Culture and Recreation 4,376,101

Economic Development 1,880,116

Total Expenditures 147,926,955

Excess of Revenues Over (Under)

Expenditures 24,346$

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OTHER TAXES

Year

Home Rule Sales

Tax

Real Estate

Transfer Tax

2005 16,825,862$ (a) 4,754,431$

2006 19,789,451 4,943,655

2007 18,766,448 3,432,176

2008 18,039,578 1,806,057

2009 16,615,628 1,263,351

2010 17,840,671 1,352,542

2011 18,641,583 1,396,683

2012 18,841,729 1,921,008

Year

Transfer into the

Debt Service Fund

2005 2,604,700$

2006 2,499,100

2007 3,364,000

2008 3,101,000

2009 7,067,731

2010 13,653,491

2011 11,490,500

2012 10,939,800

Year Amount Daily Average Amount Daily Average Total Amount Percent Change

2005 1,547,775$ 4,240$ 12,058,237$ 33,036$ 13,606,012$ X

2006 1,814,179 4,970 13,291,402 36,415 15,105,581 11.02%

2007 1,815,777 4,975 13,633,600 37,352 15,449,377 2.28%

2008 1,627,759 4,447 11,004,578 30,067 12,632,337 -18.23%

2009 1,599,896 4,383 10,121,078 27,729 11,720,974 -7.21%

2010 1,488,021 4,077 9,058,663 24,818 10,546,684 -10.02%

2011 1,498,609 4,106 8,670,975 23,756 10,169,584 -3.58%

2012 1,374,454 3,755 7,594,424 20,750 8,968,878 -11.81%

Admission Tax Wagering Tax

Year

Utility Tax

Telecommunications Utility Tax Gas

Utility Tax

Electric

2005 6,123,362$ 733,534$ 3,314,181$

2006 6,238,333 695,678 3,219,592

2007 6,827,379 735,561 3,389,101

2008 6,718,353 853,668 3,316,786

2009 6,554,209 818,532 3,135,886

2010 6,185,475 754,043 3,340,916

2011 6,202,311 800,618 3,380,119

2012 6,218,307 682,790 3,419,400

Note: (a) Home-rule sales tax rate increased from 1.00% to 1.25% effective July 1, 2005.

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2012 DISCLOSURE

Relating to

CITY OF AURORA


$33,485,000

Waterworks and Sewerage Revenue Bonds, Series 2006


OFFICIAL STATEMENT DATED

October 11, 2006

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WATERWORKS AND SEWERAGE SYSTEM FINANCIAL INFORMATION

Waterworks and Sewerage Fund


2008 2009 2010 2011 2012

ASSETS:

Current Assets:

Cash and Investments 3,763,312$ 202,881$ 7,073,371$ 16,744,888$ 20,654,100$

Accounts Receivable, Less Allowance 4,368,790 4,325,733 4,975,993 4,999,288 5,236,624

Inventory/Other 117,448 138,469 90,759 344,207 252,816

Total Current Assets 8,249,550 4,667,083 12,140,123 22,088,383 26,143,540

Restricted Assets:

Cash and Investments 16,579,074 13,604,283 8,450,977 2,338,612 1,573,940

Noncurrent Assets:

Deferred Charges 416,656 400,363 385,442 370,521 -

Due From Other Governments 4,902,500 6,147,797 8,243,936 6,648,413 6,501,718

Other Post-Employment Benefits Asset 2,114,594 2,195,010 2,161,821 2,037,880 1,976,175

Capital Assets Less

Accumulated Depreciation 172,328,010 173,332,311 169,481,165 170,489,639 172,162,419

Total Assets 204,590,384 200,346,847 200,863,464 203,973,448 208,357,792

LIABILITIES:

Current Liabilities:

Accounts Payable 2,093,057$ 1,315,151$ 1,362,285$ 1,049,775$ 1,140,012$

Accrued Payroll/Other 1,441,456 1,198,428 1,120,202 1,001,529 1,292,943

Illinois I.E.P.A. Loans Payable - 468,005 484,371 686,876 701,384

Revenue Bonds Payable, Due Within One Year 1,024,700 605,000 625,000 660,000 695,000

Total Current Liabilities 4,559,213 3,586,584 3,591,858 3,398,180 3,829,339

Noncurrent Liabilities:

Deposits 520,571 515,929 502,585 629,233 645,821

Compensated Absences 1,326,886 1,209,922 1,355,189 1,353,090 1,393,281

Termination Benefits - 16,983 - 22,319 -

Illinois EPA Loans Payable 7,252,956 7,782,673 10,196,730 9,245,590 8,544,207

Revenue Bonds Payable, Due After One Year 31,980,000 31,375,000 30,750,000 30,090,000 29,395,000


NET POSITION:

Net Investment in Capital Assets 144,125,552 153,853,985 135,807,931 136,648,459 138,458,221

Restricted 10,709,757 10,196,358 2,988,448 2,712,638 2,762,462

Unrestricted 4,115,449 (8,190,587) 15,670,723 19,873,939 23,329,461

Total Net Position 158,950,758$ 155,859,756$ 154,467,102$ 159,235,036$ 164,550,144$

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WATERWORKS AND SEWERAGE FUND

Revenue and Expenses

2008 2009 2010 2011 2012

OPERATING REVENUES:

Charges for Service 25,632,165$ 25,155,530$ 26,411,489$ 26,483,395$ 29,441,473$

Fees (1) 721,234 452,389 471,226 374,567 351,390

Other Sales and Services 188,927 280,414 255,591 252,263 320,302

Total Operating Revenues 26,542,326 25,888,333 27,138,306 27,110,225 30,113,165

OPERATING EXPENSES:

Personnel Services 9,498,204 9,487,171 8,854,696 8,907,866 9,587,640

Material & Supplies 4,358,577 4,349,289 4,262,695 3,605,573 3,970,865

Other Services and Charges 6,820,397 6,479,014 6,471,431 6,626,037 7,213,052

Intergovernmental - - - 102,093 -

Miscellaneous 2,814,736 2,188,645 4,783,313 784,432 1,379,429

Provision for Depreciation 3,728,379 3,868,076 3,975,116 4,083,910 4,140,698

Total Operating Expenses 27,220,293 26,372,195 28,347,251 24,109,911 26,291,684

Operating Income (677,967) (483,862) (1,208,945) 3,000,314 3,821,481

NON-OPERATING REVENUES (EXPENSES):

Recovery of Costs 935 9,454 16,749 24,419 9,629

Investment Income 1,230,390 396,366 279,262 381,889 312,578

Intergovernmental (4,407,785) 136,860 2,925,250 116,626 (90,879)

Debt Interest (1,698,295) (1,663,208) (1,626,890) (1,588,829) (1,549,519)

Other (31,026) (61,361) (310,229) (16,842) 8,680

Total Non-Operating Revenues (Expenses) (4,905,781) (1,181,889) 1,284,142 (1,082,737) (1,309,511)

Income Before Transfers and Contributions (5,583,748) (1,665,751) 75,197 1,917,577 2,511,970

Transfers Out (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000)

Contributions 6,132,181 3,278,919 5,515,841 3,850,357 4,173,659

Change in Net Position (451,567)$ 613,168$ 4,591,038$ 4,767,934$ 5,685,629$


Historical Coverage

2008 2009 2010 2011 2012

Operating Income (677,967)$ (483,862)$ (1,208,945)$ 3,000,314$ 3,821,481$

Investment Income 1,230,390 396,366 279,262 381,889 312,578

Depreciation 3,728,078 3,868,076 3,975,116 4,083,910 4,140,698

Net Revenue Available for Debt Service 4,280,501$ 3,780,580$ 3,045,433$ 7,466,113$ 8,274,757$

Actual Revenue Bonds Debt Service 2,019,081$ 2,017,081$ 2,704,611$ 2,022,998$ 2,035,081$

Coverage 2.12x 1.87x 1.13x 3.69x 4.07x

Notes: (1) Fees primarily represent connection and extension fees.

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Revenue and Expenditures

Budget

2013

OPERATING REVENUES:

Charges for Service 26,945,800$

Fees (1) 408,800

Other Sales and Services 278,550

Total Operating Revenues 27,633,150

OPERATING EXPENSES:

Personnel Services 9,919,600

Materials and Supplies 5,068,300

Other Services and Charges 8,199,310

Provision for Depreciation -

Total Operating Expenses 23,187,210

Operating Income 4,445,940

NON-OPERATING REVENUES (EXPENSES):

Contributions from Other Governments 444,800

Investment Income 300,000

Capital Outlay (11,835,600)

Debt Principal (1,382,000)

Debt Interest (1,529,300)

Total Non-Operating Revenues (Expenses) (14,002,100)

Net Income Before Transfers (9,556,160)

Transfers Out (1,000,000)

Net Income (10,556,160)$

Note: (1) Fees primarily represent connection and extension fees.

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Waterworks and Sewerage Bonds

and Illinois Environmental Protection Agency Loans

(Principal Only)

2000 IEPA Series 2006 Total Outstanding

Year Loan Bonds Debt Principal Percent

2013 510,302$ 695,000$ 1,205,302$ 8,792,846$ 20.22%

2014 525,234 725,000 1,250,234 10,043,080 23.10%

2015 540,603 760,000 1,300,603 11,343,683 26.09%

2016 556,422 790,000 1,346,422 12,690,105 29.18%

2017 572,703 825,000 1,397,703 14,087,808 32.40%

2018 589,461 870,000 1,459,461 15,547,269 35.75%

2019 606,709 915,000 1,521,709 17,068,978 39.25%

2020 624,462 955,000 1,579,462 18,648,440 42.88%

2021 642,734 1,000,000 1,642,734 20,291,174 46.66%

2022 638,826 1,045,000 1,683,826 21,975,000 50.53%

2023 - 1,100,000 1,100,000 23,075,000 53.06%

2024 - 1,145,000 1,145,000 24,220,000 55.70%

2025 - 1,200,000 1,200,000 25,420,000 58.46%

2026 - 1,265,000 1,265,000 26,685,000 61.37%

2027 - 1,320,000 1,320,000 28,005,000 64.40%

2028 - 1,385,000 1,385,000 29,390,000 67.59%

2029 - 1,465,000 1,465,000 30,855,000 70.96%

2030 - 1,540,000 1,540,000 32,395,000 74.50%

2031 - 1,620,000 1,620,000 34,015,000 78.22%

2032 - 1,705,000 1,705,000 35,720,000 82.14%

2033 - 1,795,000 1,795,000 37,515,000 86.27%

2034 - 1,890,000 1,890,000 39,405,000 90.62%

2035 - 1,990,000 1,990,000 41,395,000 95.19%

2036 - 2,090,000 2,090,000 43,485,000 100.00%

Total 5,807,456$ 30,090,000$

Cumulative Retirement

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Waterworks and Sewerage Revenue Bonds, Series 2006

Projected Debt Service Coverage

Net Revenue

Available Remaining

Year

for Debt

Service (1)

2000 IEPA

Loan Principal Interest

Debt

Service

Total Debt

Service Coverage

Mandatory

Coverage (2)

Revenue

Available

2013 6,000,000$ 675,329$ 695,000$ 1,348,681$ 2,043,681$ 2,719,010$ 2.21 x 3,398,763$ 2,601,238$

2014 6,000,000 675,329 725,000 1,320,881 2,045,881 2,721,210 2.20 x 3,401,513 2,598,488

2015 6,000,000 675,329 760,000 1,291,881 2,051,881 2,727,210 2.20 x 3,409,013 2,590,988

2016 6,000,000 675,329 790,000 1,261,481 2,051,481 2,726,810 2.20 x 3,408,513 2,591,488

2017 6,000,000 675,329 825,000 1,229,881 2,054,881 2,730,210 2.20 x 3,412,763 2,587,238

2018 6,000,000 675,329 870,000 1,196,881 2,066,881 2,742,210 2.19 x 3,427,763 2,572,238

2019 6,000,000 675,329 915,000 1,160,994 2,075,994 2,751,323 2.18 x 3,439,154 2,560,846

2020 6,000,000 675,329 955,000 1,122,106 2,077,106 2,752,435 2.18 x 3,440,544 2,559,456

2021 6,000,000 675,329 1,000,000 1,081,519 2,081,519 2,756,848 2.18 x 3,446,060 2,553,940

2022 6,000,000 652,614 1,045,000 1,036,519 2,081,519 2,734,133 2.19 x 3,417,666 2,582,334

2023 6,000,000 - 1,100,000 989,494 2,089,494 2,089,494 2.87 x 2,611,868 3,388,133

2024 6,000,000 - 1,145,000 939,994 2,084,994 2,084,994 2.88 x 2,606,243 3,393,758

2025 6,000,000 - 1,200,000 888,469 2,088,469 2,088,469 2.87 x 2,610,586 3,389,414

2026 6,000,000 - 1,265,000 834,469 2,099,469 2,099,469 2.86 x 2,624,336 3,375,664

2027 6,000,000 - 1,320,000 777,544 2,097,544 2,097,544 2.86 x 2,621,930 3,378,070

2028 6,000,000 - 1,385,000 718,144 2,103,144 2,103,144 2.85 x 2,628,930 3,371,070

2029 6,000,000 - 1,465,000 655,819 2,120,819 2,120,819 2.83 x 2,651,024 3,348,976

2030 6,000,000 - 1,540,000 589,894 2,129,894 2,129,894 2.82 x 2,662,368 3,337,633

2031 6,000,000 - 1,620,000 520,594 2,140,594 2,140,594 2.80 x 2,675,743 3,324,258

2032 6,000,000 - 1,705,000 447,694 2,152,694 2,152,694 2.79 x 2,690,868 3,309,133

2033 6,000,000 - 1,795,000 368,838 2,163,838 2,163,838 2.77 x 2,704,798 3,295,203

2034 6,000,000 - 1,890,000 283,575 2,173,575 2,173,575 2.76 x 2,716,969 3,283,031

2035 6,000,000 - 1,990,000 193,800 2,183,800 2,183,800 2.75 x 2,729,750 3,270,250

2036 6,000,000 - 2,090,000 99,275 2,189,275 2,189,275 2.74 x 2,736,594 3,263,406

Total: 6,730,575$ 30,090,000$ 20,358,427$ 50,448,427$ 57,179,002$

Series 2006


(2) Mandatory coverage based on bond ordinance rate covenant for 125% of debt service.

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2012 DISCLOSURE

Relating to

CITY OF AURORA


$4,600,000

Golf Course Revenue Bonds, Series 2000

and

$2,680,000

Golf Course Revenue Refunding Bonds, Series 2012


OFFICIAL STATEMENTS DATED

May 15, 2000

and

November 27, 2012,

Respectively

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GOLF COURSE REVENUE DEBT INFORMATION

Golf Course Revenue Bonded Debt

(Principal Only)

Total

Calendar Series Series Outstanding

Year 2000 2012 Bonds Amount Percent

2013 290,000$ 355,000$ 645,000$ 645,000$ 21.72%

2014 - 365,000 365,000 1,010,000 34.01%

2015 - 375,000 375,000 1,385,000 46.63%

2016 - 385,000 385,000 1,770,000 59.60%

2017 - 390,000 390,000 2,160,000 72.73%

2018 - 400,000 400,000 2,560,000 86.20%

2019 - 410,000 410,000 2,970,000 100.00%

290,000$ 2,680,000$ 2,970,000$

Cumulative Principal Retired

Total

Debt Service Coverage

Calendar

Year

Series

2012

Net Revenue

Available for

Debt Service(2)

2013 423,861$ 511,229$ 1.21 x

2014 423,125 628,536 1.49 x

2015 424,000 647,392 1.53 x

2016 424,625 647,392 1.52 x

2017 420,000 647,392 1.54 x

2018 420,250 647,392 1.54 x

2019 420,250 647,392 1.54 x

Total 2,956,111$

Debt Service

Coverage


(2) Based on projections from the City.

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FINANCIAL INFORMATION

Golf Course Fund


2008 2009 2010 2011 2012

ASSETS:

Current Assets:

Cash and Investments 430,063$ 319,802$ 551,023$ 465,917$ 110,444$

Accounts Receivable, Net of Allowance 2,400 400 322 11,845 11,923

Due from Other Funds - 135,000 - - -

Total Current Assets 432,463 455,202 551,345 477,762 122,367

Restricted Assets:

Cash and Investments 502,836 501,397 505,121 508,049 421,909

Noncurrent Assets:

Deferred Charges 46,963 42,855 38,747 34,639 -

Capital Assets

Net of Accumulated Depreciation 4,297,936 4,064,168 3,830,400 3,596,632 3,362,864

Deferred Outflows:

Unamortized Loss on Refunding 32,165

Total Assets and Deferred Outflows 5,280,198 5,063,622 4,925,613 4,617,082 3,939,305

LIABILITIES:

Current Liabilities:

Accounts Payable 11,500 26,897 15,688 4,478 24,765

Accrued Payroll 29,476 45,585 34,100 34,594 33,025

Accrued Interest Payable 119,880 113,430 107,530 101,380 -

Due to Other Funds - 7,524 - - -

Other Unearned Revenue 42,817 46,191 44,730 58,286 59,276

Compensated Absences Payable 4,146 3,508 4,213 3,644 4,644

Termination Benefits - - 8,785 - -

Revenue Bonds Payable, Due Within One Year 200,000 200,000 205,000 250,000 355,000

Total Current Liabilities 407,819 443,135 420,046 452,382 476,710

Non-Current Liabilities:

Compensated Absences Payable 78,781 66,655 80,056 69,235 88,246

Termination Benefits Payable - 8,785 - - -

Net Other Post-Employment Benefits Obligation 364,749 418,220 476,854 514,009 557,292

Revenue Bonds Payable, Due After One Year 3,650,000 3,450,000 3,245,000 2,995,000 2,356,833


Net Position:

Net Investment in Capital Assets 447,936 414,168 380,400 351,632 651,031

Restricted 502,836 501,397 505,121 508,049 421,909

Unrestricted (171,923) (238,738) (181,864) (273,225) (612,716)

Total Net Position 778,849$ 676,827$ 703,657$ 586,456$ 460,224$

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Golf Course Fund

Revenues, Expenses, and Change in Net Position

2008 2009 2010 2011 2012

OPERATING REVENUES:

Charges for Services 1,896,199$ 1,887,564$ 1,898,957$ 1,719,495$ 1,820,143$

Other 103 1,095 381 100 403

Total Operating Revenues 1,896,302 1,888,659 1,899,338 1,719,595 1,820,546

OPERATING EXPENSES:

Personnel Services 1,026,810 1,038,502 1,162,795 931,246 958,591

Material and Supplies 342,729 371,005 421,226 382,306 451,824

Other Services and Charges 241,569 251,735 286,340 283,922 388,517

Total Operating Expenses 1,611,108 1,661,242 1,870,361 1,597,474 1,798,932

Operating Income Before Depreciation 285,194 227,417 28,977 122,121 21,614

Depreciation (233,768) (233,768) (233,768) (233,768) (233,768)

Operating Income (Loss) 51,426 (6,351) (204,791) (111,647) (212,154)


Investment Income 20,616 1,422 1,164 2,064 658

Bond Interest (240,135) (227,985) (215,435) (203,510) (189,736)

Other (4,108) (4,108) (4,108) (4,108) -

Total Nonoperating Revenues (Expenses) (223,627) (230,671) (218,379) (205,554) (189,078)

Income Before Transfers (172,201) (237,022) (423,170) (317,201) (401,232)

TRANSFERS:

Transfers In - 135,000 450,000 200,000 275,000

Total Transfers - 135,000 450,000 200,000 - 275,000

Change in Net Position (172,201)$ (102,022)$ 26,830$ (117,201)$ (126,232)$

Golf Course Fund

Projected Revenues and Expenditures

2013 2014 2015 2016

Operating Revenues 2,359,100$ 3,005,158$ 3,097,429$ 3,185,110$

Operating Expenses 1,847,871 2,049,619 2,121,356 2,195,603

Operating Income 511,229 955,539 976,073 989,507

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2012 DISCLOSURE

Relating to

CITY OF AURORA


$7,140,000

Tax Increment Revenue Bonds, Series 2004B



July 13, 2004

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Equalized Assessed Value in the Project Area

Property 2002 2003 2004 2005 2006

Class:

Farm 21,898$ 9,125$ -$ 14,000$ 8,500$

Residential 34,155 29,242 - 13,651 13,651

Commercial 41,141 158,582 - 354,891 354,891

Industrial 300,055 18,398 - 31,141 36,641

Sub-Total 397,249 215,347 407,069 413,683 413,683

Increment 8,240,041 11,517,637 36,860,104 51,609,270 60,933,629

Total 8,637,290$ 11,732,984$ 37,267,173$ 52,022,953$ 61,347,312$

Total City EAV 2,605,818,152$ 2,925,521,327$ 3,185,806,427$ 3,451,771,935$ 3,709,999,011$

Project Area %** 0.33% 0.40% 1.17% 1.51% 1.65%

Property 2007 2008 2009 2010 2011

Class:

Farm 1,269$ 1,396$ 1,535$ 1,928$ 2,520$

Residential 12,569 11,865 11,865 11,865 11,865

Commercial 240,787 198,803 197,346 183,549 181,931

Industrial 31,401 31,076 31,226 31,226 30,461

Sub-Total 286,026 243,140 241,972 228,568 226,777

Increment 72,031,912 88,331,769 99,332,052 86,245,349 85,809,249

Total 72,317,938$ 88,574,909$ 99,574,024$ 86,473,917$ 86,036,026$

Total City EAV 4,110,963,474$ 4,345,627,949$ 4,333,218,090$ 4,063,919,608$ 3,717,477,186$

Project Area %* 1.76% 2.04% 2.30% 2.13% 2.31%

Source: Kane County Clerk and City.

* Project Area EAV as a percentage of City EAV.

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Property Tax Rates of Taxing Districts in the Project Area

(per $100 assessed valuation)


Taxing District 2002 2003 2004 2005 2006

Kane County 0.4292$ 0.3578$ 0.3467$ 0.3367$ 0.3452$

Kane County Forest Preserve District 0.1395 0.1270 0.1432 0.1905 0.1747

Aurora Township 0.1909 0.1718 0.1612 0.1559 0.1501

Aurora Township Road District 0.0847 0.0791 0.0776 0.0743 0.0715


City of Aurora 1.4069 1.4040 1.4030 1.5338 1.5309

City of Aurora Library 0.2518 0.2549 0.2537 0.2542 0.2553

Fox Metro Water Reclamation District - - - - -

City of Aurora Fire Pension 0.1494 0.1635 0.1151 0.1335 0.1389

Community College District Number 516 0.4043 0.4134 0.4099 0.3933 0.3984

Unit School District Number 101 4.2412 4.3072 4.6508 4.7369 4.6989

Total Rates 7.7065$ 7.6782$ 7.9680$ 8.1937$ 8.1385$

Taxing Districts 2007 2008 2009 2010 2011

Kane County 0.3322$ 0.3336$ 0.3398$ 0.3730$ 0.3990$

Kane County Forest Preserve District 0.1974 0.1932 0.1997 0.2201 0.2609

Aurora Township 0.1449 0.1450 0.1486 0.1664 0.1882



City of Aurora 1.5079 1.5105 1.4653 1.7134 1.7644


Fox Metro Water Reclamation District - - - - -

City of Aurora Fire Pension 0.1528 0.1453 0.1912 - -

Community College District Number 516 0.3950 0.3995 0.4043 0.4070 0.4710

Unit School District Number 101 4.6989 4.6986 4.6986 4.9034 5.7833

Total Rates 8.1564$ 8.1410$ 8.1842$ 8.5948$ 9.7317$

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Special Tax Allocation Fund Historic Revenues and Expenditures

Year

Incremental

Tax Revenues

Investment

Earnings

Other

Revenues

Total

Revenues Expenditures Transfers Balance

1990 2,438$ 5$ -$ 2,443$ -$ -$ 2,443$

1991 20,185 28 - 20,213 - - 22,656

1992 159,583 1,514 - 161,097 - - 183,753

1993 140,236 70 - 140,306 - - 324,059

1994 43,056 11,200 - 54,256 - - 378,315

1995 117,390 21,262 - 138,652 12,047 - 504,920

1996 149,950 23,215 - 173,165 105,580 - 572,505

1997 167,598 23,710 - 191,308 124,565 - 639,248

1998 181,237 31,170 - 212,407 161,973 - 689,682

1999 191,245 37,159 - 228,404 6,396 - 911,690

2000 254,016 57,761 - 311,777 445,775 - 777,692

2001 330,984 22,826 - 353,810 996,044 - 135,458

2001 Adj. * - - - - (263,839) - 399,297

2002 389,915 5,895 - 395,810 185,651 - 609,456

2003 624,197 8,370 - 632,567 33,438 - 1,208,585

2004 864,952 15,202 - 880,154 784,443 - 1,304,296

2005 2,892,248 74,065 - 2,966,313 696,272 - 3,574,337

2006 4,208,482 216,367 - 4,424,849 2,897,949 - 5,101,237

2007 4,952,271 278,783 - 5,231,054 3,603,840 - 6,728,451

2008 5,790,668 206,006 - 5,996,674 4,315,174 - 8,409,951

2009 7,165,422 84,813 - 7,250,235 9,792,071 - 5,868,115

2010 8,116,515 23,454 - 8,139,969 2,583,225 - 11,424,859

2011 7,391,500 56,206 27,637 7,475,343 4,785,120 - 14,115,082

2012 8,320,538 46,571 - 8,367,109 10,096,242 (15,600,000) (3,214,051)

Total 52,474,626$ 1,245,652$ 27,637$ 53,747,915$ 41,361,966$ (15,600,000)$

Source: City

* Adjustment to reflect the repayment by the City of moneys erroneously drawn from the fund.

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Largest Taxpayers in the Project Area

Taxpayer Name

Business/

Operations 2011 EAV

% of Project Area

Total EAV

Simon/Chelsea Development, LLC Commercial 39,482,504$ 45.89%

Liberty Property Limited Partnership Industrial 21,449,060 24.93%

IIT Aurora DC LLC Industrial 4,598,934 5.35%

YALL LLC Commercial/Industrial 2,331,157 2.71%

IFA III Raddant Road LLC Industrial 1,797,567 2.09%

Taft Property Group, LLC Commercial 1,421,558 1.65%

421 Butterfield LLC Commercial 1,208,078 1.40%

Harris N.A. Commercial 937,598 1.09%

Individual Commercial/Industrial 613,360 0.71%

Total 73,839,816$ 85.82%

Source: Kane County Clerk.

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Summary of Leases


TENANT

SQUARE

FOOTAGE TENANT

SQUARE

FOOTAGE TENANT

SQUARE

FOOTAGE

Nike 16,000 Wilson's Leather 3,615 Theory 2,315

Polo Ralph Lauren 13,071 DKNY 3,516 Guess Accessories 2,272

Adidas 10,000 Zumiez 3,500 Vera Bradley 2,200

Brooks Brothers 10,000 Justice 3,425 Aerosoles 2,192

Gap 8,500 Salvatore Ferragamo 3,400 Nine West 2,192

Calvin Klein 8,434 Bose 3,400 Zales 2,182

Dress Barn 8,276 Hanesbrands 3,394 Cosmethics Company Store 2,140

Tommy Hilfiger 8,004 Chico's 3,292 St. John 2,016

Ann Taylor 7,500 Ecko 3,252 Stride Rite 2,000

Reebok 7,353 Coach Men's 3,225 Company Outlet 2,000

Timberland 7,256 Elie Tahari 3,200 Johnston & Murphy 2,000

Eddie Bauer 7,200 Cole Haan 3,200 Motherhood Maternity 2,000

Bass 6,528 Juicy Couture 3,200 True Religion 2,000

Banana Republic 6,528 Perry Ellis 3,162 Things Remembered 2,000

Factory Brand Shoes 6,500 Skechers 3,000 Kate Spade 1,514

Gap Kids/BabyGap 6,000 Kitchen Collection 3,000 Claire's 1,415

The Children's Place 6,000 A/X Armani Exchange 3,000 Vitamin World 1,415

Talbots 6,000 Lacoste 3,000 Ultra 1,388

Lane Bryant 5,801 Benetton 3,000 Watch Station International 1,348

Kenneth Cole 5,650 Max Mara 3,000 Swarovski 1,218

Guess 5,501 Michael Kors 3,000 Crabtree & Evelyn 1,218

Sony 5,472 Clarks Bostonian 3,000 Designer Fragrances 1,200

J. Crew 5,248 Converse 2,800 Le Creuset 1,140

Osh Kosh B'Gosh 5,034 IZOD 2,800 Zwilling JA Henckels 1,140

Giorgio Armani 5,000 Samsonite Company Store 2,767 Godiva Chocolatier 1,119

Under Armour 5,000 Jones NY 2,767 Starbucks 1,118

Puma 4,994 Oakley Vault 2,766 Sunglass Club 1,101

Coach 4,989 Merrell 2,735 Lids 1,072

Levi's Outlet 4,728 Journey's 2,700 Mrs. Fields 1,014

Aldo Shoes 4,635 Crocs 2,681 Lindt Chocolate 1,000

Diesel 4,625 Liz Claiborne/Lucky Jeans 2,600 Skagen 956

Nautica 4,500 Sarar 2,576 Perfumania 902

Aeropostale 4,459 Gymboree 2,525 Tag Heuer 776

New York & Company 4,408 Dooney & Bourke 2,515 Sunglass Outlet 716

Hugo Boss 4,136 Maidenform 2,500 Auntie Anne's 705

Spyder Active Sport 4,091 ECCO 2,500 Rocky Mtn. Choc. 693

Van Heusen 4,064 Fossil 2,500 Maki of Japan 660

Carters 4,000 7 For All Mankind 2,500 Ranch 1 650

PacSun 4,000 BCBG Max Azria 2,500 Villa Pizza 650

Jockey 3,759 Naturalizer 2,500 Great Steak 650

Rue 21 3,716 Kasper 2,323 Asian Chao 650

Sunglass Shop 599

TOTAL 434,832

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Debt Coverage

Period

Ending Principal Interest

Total Debt

Service

Revenues

Available for

Debt Service

12/31/2004 -$ 159,753$ 159,753$ 880,154$ 5.51 x

12/31/2005 170,000 375,890 545,890 2,966,313 5.43 x

12/31/2006 525,000 367,560 892,560 4,424,849 4.96 x

12/31/2007 605,000 341,835 946,835 5,231,054 5.52 x

12/31/2008 670,000 312,190 982,190 5,996,674 6.11 x

12/31/2009 735,000 279,360 1,014,360 7,250,235 7.15 x

12/31/2010 810,000 243,345 1,053,345 8,139,969 7.73 x

12/31/2011 885,000 203,655 1,088,655 7,475,343 6.87 x

12/31/2012 965,000 160,290 1,125,290 8,367,109 7.44 x

Debt Coverage

Ratio

City’s Portion of State-Shared Sales Taxes

from the Project

Year Amount

2005 1,720,667$

2006 1,721,892

2007 1,556,703

2008 1,585,413

2009 1,662,770

2010 1,691,293

2011 1,863,111

2012 1,964,682

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2012 DISCLOSURE

Relating to

CITY OF AURORA


$6,660,000

Tax Increment Revenue Bonds, Series 2008A

and

$7,265,000

Tax Increment Revenue Bonds, Series 2008B



September 12, 2008

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EQUALIZED ASSESED VALUATION AND PROPERTY TAX RATES

Historic Redevelopment Project Area Equalized Assessed Valuation

TIF No. 3 (River City)

2005 2006 2007 2008 2009

Property Class:

Residential 234,755$ 167,028$ 181,220$ 192,321$ 192,987$

Commercial 2,304,076 2,040,187 1,875,389 1,558,499 1,576,609

Industrial 297,492 357,592 364,289 743,516 749,634

Railroad 29,777 31,173 35,099 2,953,833 2,953,833

Sub-Total 2,866,100 2,595,980 2,455,997 5,448,169 5,473,063

Increment 1,160,064 1,498,429 2,045,828 5,443,286 10,672,189

Total 4,026,164$ 4,094,409$ 4,501,825$ 10,891,455$ 16,145,252$

Total City EAV 3,523,396,362$ 3,791,995,386$ 4,110,963,474$ 4,345,627,949$ 4,333,218,090$

Project Area %** 0.11% 0.11% 0.11% 0.25% 0.37%

2010 2011

Property Class:

Residential 192,987$ 192,987$

Commercial 1,337,919 1,376,396

Industrial 613,521 557,816

Railroad 2,953,833 2,953,833

Sub-Total 5,098,260 5,081,032

Increment 10,423,342 7,712,110

Total 15,521,602$ 12,793,142$

Total City EAV 4,063,919,608$ 3,717,477,186$

Project Area %** 0.38% 0.34%

Levy Year

Levy Year

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Property Tax Rates of Taxing Districts in the Redevelopment Project Area


(Per $100 equalized assessed valuation)

Taxing Districts 2005 2006 2007 2008 2009 2010 2011

Kane County 0.3367$ 0.3452$ 0.3322$ 0.3336$ 0.3398$ 0.3730$ 0.3990$

Kane County Forest Preserve District 0.1905 0.1747 0.1974 0.1932 0.1997 0.2201 0.2609

Aurora Township 0.1559 0.1501 0.1449 0.1450 0.1486 0.1664 0.1882

Aurora Township Road District 0.0743 0.0715 0.0690 0.0691 0.0703 0.0764 0.0860

Fox Valley Park District 0.3846 0.3746 0.4037 0.4014 0.4122 0.4803 0.5286

City of Aurora 1.6672 1.6697 1.6607 1.6558 1.6565 1.7134 1.7644

City of Aurora Library 0.2542 0.2553 0.2546 0.2448 0.2542 0.2548 0.2503

Community College District Number 516 0.3933 0.3984 0.3950 0.3995 0.4043 0.4070 0.4710

Unit School District Number 129 3.6786 3.5635 4.1252 4.1225 4.1835 4.2740 5.1603

Special Service Area 1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000

Special Service Area 16 - - - - - - -

Total Rates 8.1353$ 8.0030$ 8.5827$ 8.5649$ 8.6691$ 8.9654$ 10.1087$

Unit School District 131 3.6793$ 3.5631$ 3.4242$ 3.7528$ 3.8794$ 4.3004$ 4.9160$

Levy Year


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Historic Redevelopment Project Area Equalized Assessed Valuation

TIF No. 6 (East River Area)

2007 2008 2009 2010 2011

Property Class:

Residential 373,985$ 373,985$ 332,776$ 300,738$ 295,254$

Commercial 7,492,209 6,187,805 6,062,447 5,930,607 4,464,975

Industrial 4,147,419 5,334,191 5,318,626 5,026,353 4,720,727

Railroad 514,339 12,013,613 12,013,613 12,013,613 12,013,613

Subtotal 12,527,952 23,909,594 23,727,462 23,271,311 21,494,569

Increment 798,452 3,256,245 4,701,850 4,080,803 2,879,346

Total 13,326,404$ 27,165,839$ 28,429,312$ 27,352,114$ 24,373,915$

Total City EAV 4,110,963,474$ 4,345,627,949$ 4,333,218,090$ 4,063,919,608$ 3,717,477,186$

Redevelopment Project Area % 0.32% 0.63% 0.66% 0.67% 0.66%

Levy Year

Property Tax Rates of Taxing Districts in the Redevelopment Project Area

TIF No. 6 (East River City)

(per $100 equalized assessed valuation)

2007 2008 2009 2010 2011

Taxing District:

Kane County 0.3322$ 0.3336$ 0.3398$ 0.3730$ 0.3990$

Kane County Forest Preserve 0.1974 0.1932 0.1997 0.2201 0.2609

Aurora Township 0.1449 0.1450 0.1486 0.1664 0.1882



City of Aurora 1.6607 1.6558 1.6565 1.7134 1.7644


Community College District 516 0.3950 0.3995 0.4043 0.4070 0.4710


Total 7.5827$ 7.5649 7.6691$ 7.9654$ 9.1087$

Unit School District 131 3.4242$ 3.7528$ 3.8794$ 4.3004$ 4.9160$

Levy Year

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TIF No. 3 Pledged Tax Collections

Levy

Year

Collection

Year

Amount

Collected

2001 2002 30,496$

2002 2003 44,165

2003 2004 62,925

2004 2005 81,118

2005 2006 102,229

2006 2007 115,195

2007 2008 150,977

2008 2009 202,061

2009 2010 196,253

2010 2011 161,375

2011 2012 164,709

Total 1,311,503$

Note: Per the bond ordinance, pledged taxes include incremental property taxes less payments to overlapping taxing districts and certain developers as required by previously executed

agreements.

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Taxpayer Name 2011 EAV (2) % of Total TIF

River & Benton LLC 2,073,126$ 16.20%

First of America Bank-Illinois 364,552 2.85%

I.A. Rana Enterprises Inc. 270,713 2.12%

Individual 266,704 2.08%

River Street Lofts LLC 247,658 1.94%

Aurora Redevelopment Co., LLC 232,440 1.82%




Shodeen Family Property Company LLC 141,803 1.11%

Total 4,229,646$ 33.06%

Notes: (1) Source: The City and Kane County Clerk.

(2) Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers

listed contain multiple parcels, and it is possible that some parcels and their valuations have been overlooked.


TIF No. 6 (East River Area)

Taxpayer Name 2011 EAV (2) % of Total TIF

Indian Trail Business Center Partners 1,318,335$ 5.41%

Indian Trail Plaza, LLC 996,955 4.09%

Browning Ferris of Illinois, Inc. 460,631 1.89%

Kane County Teachers Credit Union 444,343 1.82%

Private Trust 413,474 1.70%

Geneva Construction Company 367,737 1.51%

1275 Aurora LLC 351,026 1.44%

Berkheimer Properties LLC 340,487 1.40%

Square Peg Real Estate LLC 331,860 1.36%

MJW - Aurora Properties 320,336 1.31%

Total 5,345,184$ 21.93%

Notes: (1) Source: The City and Kane County Clerk.

(2) Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers listed contain multiple parcels, and it is possible that some parcels and their valuations have been overlooked.

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Historic Receipts from the Riverboat Casino

Admissions Tax and Gaming Taxes

Year Wagering Tax

Admissions

Tax Total

1993 (a) 1,539,843$ 494,331$ 2,034,174$

1994 6,978,479 2,292,129 9,270,608

PPA (b) 1,673,471 560,970 2,234,441

1995 7,289,108 2,723,083 10,012,191

1996 7,845,852 3,180,239 11,026,091

1997 7,691,908 3,608,393 11,300,301

1998 7,833,137 3,281,429 11,114,566

1999 9,557,323 3,074,115 12,631,438

2000 10,869,464 2,661,334 13,530,798

2001 11,611,763 2,307,698 13,919,461

2002 13,620,684 2,638,509 16,259,193

2003 12,336,493 1,917,304 14,253,797

2004 11,474,679 1,448,717 12,923,396

2005 12,058,237 1,547,775 13,606,012

2006 13,291,402 1,814,179 15,105,581

2007 13,633,600 1,815,777 15,449,377

2008 11,004,578 1,627,759 12,632,337

2009 10,121,078 1,599,896 11,720,974

2010 9,058,663 1,488,021 10,546,684

2011 8,670,025 1,498,609 10,168,634

2012 7,594,424 1,374,454 8,968,878

195,754,211$ 42,954,721$ 238,708,932$

Notes: (a) Partial year of casino operations.

(b) Prior-period adjustment recognized in 1995 due to GASB Statement No. 22.

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