d.a. davidson & co. · bonds is payable on november 15, 2014. the bonds will be issued using a...

New Issue Insured Investment Rating (2013A Bonds Only): Standard & Poor's … AA (Stable Outlook) (BAM Insured)

Underlying Investment Rating: Standard & Poor's … A (Stable Outlook)

Final Official Statement Dated October 24, 2013

Subject to compliance by the District with certain covenants, in the opinion of Bond Counsel, under present law, interest on the Bonds is excludable from gross income of the owners thereof for federal income tax purposes and is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations, but such interest is taken into account in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. Interest on the Bonds is not exempt from present State of Illinois income taxes. See “TAX EXEMPTION” herein for a more complete discussion. The Bonds are “qualified tax-exempt obligations” under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. See “QUALIFIED TAX-EXEMPT OBLIGATIONS” herein.

COUNTRY CLUB HILLS PARK DISTRICT

Cook County, Illinois $4,390,000 General Obligation Park Bonds (Alternate Revenue Source), Series 2013A

$467,000 General Obligation Limited Tax Park Bonds, Series 2013B

Dated Date of Delivery Bank Qualified Book-Entry Due as Detailed Herein The $4,390,000 General Obligation Park Bonds (Alternate Revenue Source), Series 2013A (the “2013A Bonds”), and the $467,000 General Obligation Limited Tax Park Bonds, Series 2013B (the “2013B Bonds”, together with the 2013A Bonds, the “Bonds”) are being issued by the Country Club Hills Park District, Cook County, Illinois (the “District”). Interest on the 2013A Bonds is payable semiannually on June 1 and December 1 of each year, commencing June 1, 2014. Interest on the 2013B Bonds is payable on November 15, 2014. The Bonds will be issued using a book-entry system. The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the Bonds. The ownership of one fully registered Bond for each maturity will be registered in the name of Cede & Co., as nominee for DTC and no physical delivery of Bonds will be made to purchasers. Interest is calculated based on a 360-day year of twelve 30-day months.

OPTIONAL REDEMPTION

The 2013A Bonds due December 1, 2014-2022, inclusive, are non-callable. The 2013A Bonds due December 1, 2023-2028, inclusive, are callable in whole or in part on any date on or after December 1, 2022, at a price of par and accrued interest. If less than all the 2013A Bonds are called, they shall be redeemed in such principal amounts and from such maturities as determined by the District and within any maturity by lot. See “OPTIONAL REDEMPTION – The 2013A Bonds” herein.

The 2013B Bonds are not subject to optional redemption prior to maturity.

BOND INSURANCE – 2013A BONDS ONLY

The scheduled payment of principal of and interest on the 2013A Bonds when due will be guaranteed under a municipal bond insurance policy to be issued concurrently with the delivery of the 2013A Bonds by BUILD AMERICA MUTUAL ASSURANCE COMPANY.

PURPOSE, LEGALITY AND SECURITY

The proceeds of the 2013A Bonds will be used to (i) currently refund the District’s outstanding General Obligation Park Bonds (Alternate Revenue Source), Series 2003A (the “Series 2003A Bonds”), due December 1, 2014-2024, (ii) finance certain capital improvements in the District, and (iii) pay the costs of issuance of the 2013A Bonds. See “PLAN OF FINANCING – The 2013A Bonds” and “THE PROJECTS” herein.

The proceeds of the 2013B Bonds will be used to (i) fund the debt service due on December 1, 2013, on the District’s outstanding Series 2003A Bonds, (ii) finance

certain capital improvements in the District and (iii) pay the costs of issuance of the 2013B Bonds. See “THE PROJECTS” herein.

In the opinion of Bond Counsel, Chapman and Cutler LLP, Chicago, Illinois (“Bond Counsel”), the 2013A Bonds are valid and legally binding upon the District and are payable (i) from proceeds received by the District from the issuance of its general obligation bonds or notes to the fullest extent permitted by law, including Section 15.01 of the Local Government Debt Reform Act of the State of Illinois, as amended, and Section 6-4 of the Park District Code of the State of Illinois, as amended, (ii) from such other funds of the District as may be lawfully available and annually appropriated for such payment, and (iii) from ad valorem property taxes levied against all of the taxable property in the District without limitation as to rate or amount, except that the rights of the owners of the 2013A Bonds and the enforceability of the 2013A Bonds may be limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. See “DESCRIPTION OF THE 2013A BONDS” herein.

In the opinion of Bond Counsel, the 2013B Bonds are valid and legally binding upon the District and are payable from any funds of the District legally available for

such purpose, and all taxable property in the District is subject to the levy of ad valorem taxes to pay the same without limitation as to rate, except that the rights of the owners of the 2013B Bonds and the enforceability of the 2013B Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. The amount of said taxes that may be extended to pay the 2013B Bonds is, however, limited as provided by law. See “DESCRIPTION OF THE 2013B BONDS” herein.

The Bonds are offered when, as and if issued and received by the Underwriter, subject to the approving legal opinion of Chapman and Cutler LLP, Chicago,

Illinois, Bond Counsel, and certain other conditions. It is expected that the Bonds will be made available for delivery on or about November 5, 2013.

D.A. Davidson & Co.

The Underwriter has provided the following sentence for inclusion in the Official Statement. The Underwriter

has reviewed the information in this Official Statement in accordance with, and as part of, its respective responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

No dealer, broker, salesman or other person has been authorized by the District to give any information or to

make any representations with respect to the Bonds other than as contained in the Official Statement or the Final Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized by the District. Certain information contained in the Official Statement and the Final Official Statement may have been obtained from sources other than records of the District and, while believed to be reliable, is not guaranteed as to completeness. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE DISTRICT SINCE THE RESPECTIVE DATES THEREOF.

References herein to laws, rules, regulations, ordinances, resolutions, agreements, reports and other documents

do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference to the particular document, the full text of which may contain qualifications of and exceptions to statements made herein. Where full texts have not been included as appendices to the Official Statement or the Final Official Statement, they will be furnished on request. This Official Statement does not constitute an offer to sell, or solicitation of an offer to buy, any securities to any person in any jurisdiction where such offer or solicitation of such offer would be unlawful.

Build America Mutual Assurance Company (“BAM”) makes no representation regarding the Bonds or the

advisability of investing in the Bonds. In addition, BAM has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding BAM, supplied by BAM as set forth in “APPENDIX C – BOND INSURANCE AND SPECIMEN MUNICIPAL BOND INSURANCE POLICY”.

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TABLE OF CONTENTS

Page

BOND ISSUE SUMMARY .................................................................................................................................................................................................................................................. 1 THE 2013A BONDS ............................................................................................................................................................................................................................................................. 2 THE 2013B BONDS ............................................................................................................................................................................................................................................................. 3 COUNTRY CLUB HILLS PARK DISTRICT ..................................................................................................................................................................................................................... 4 DESCRIPTION OF THE 2013A BONDS ........................................................................................................................................................................................................................... 4

Security: Alternate Revenue Sources and Tax Levy ..................................................................................................................................................................................................... 4 Highlights of Alternate Bonds ......................................................................................................................................................................................................................................... 5 Abatement of Pledged Taxes ........................................................................................................................................................................................................................................... 6 Bond Fund ....................................................................................................................................................................................................................................................................... 6 Additional Bonds ............................................................................................................................................................................................................................................................. 7 Treatment of Bonds as Debt ............................................................................................................................................................................................................................................ 7 Certain Risk Factors ........................................................................................................................................................................................................................................................ 7

DESCRIPTION OF THE 2013B BONDS ........................................................................................................................................................................................................................... 7 THE DISTRICT .................................................................................................................................................................................................................................................................... 8

District Organization and Services .................................................................................................................................................................................................................................. 8 City of Country Club Hills .............................................................................................................................................................................................................................................. 9 Education ......................................................................................................................................................................................................................................................................... 9 Transportation.................................................................................................................................................................................................................................................................. 9

SOCIOECONOMIC INFORMATION .............................................................................................................................................................................................................................. 10 Employment .................................................................................................................................................................................................................................................................. 10 Housing .......................................................................................................................................................................................................................................................................... 11 Income ........................................................................................................................................................................................................................................................................... 12

PLAN OF FINANCING ..................................................................................................................................................................................................................................................... 14 THE PROJECTS ................................................................................................................................................................................................................................................................. 14

The 2013A Bonds .......................................................................................................................................................................................................................................................... 14 The 2013B Bonds .......................................................................................................................................................................................................................................................... 14

DEBT INFORMATION ..................................................................................................................................................................................................................................................... 15 PROPERTY ASSESSMENT AND TAX INFORMATION.............................................................................................................................................................................................. 17 REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES ............................................................................................................................................. 18

Real Property Assessment ............................................................................................................................................................................................................................................. 18 Equalization ................................................................................................................................................................................................................................................................... 20 Exemptions .................................................................................................................................................................................................................................................................... 20 Tax Levy ........................................................................................................................................................................................................................................................................ 23 Property Tax Extension Limitation Law ....................................................................................................................................................................................................................... 23 Extensions ...................................................................................................................................................................................................................................................................... 24 Collections ..................................................................................................................................................................................................................................................................... 24 Truth in Taxation Law ................................................................................................................................................................................................................................................... 25

FINANCIAL INFORMATION .......................................................................................................................................................................................................................................... 25 Budgeting ...................................................................................................................................................................................................................................................................... 25 Investment Policy .......................................................................................................................................................................................................................................................... 26 No Consent or Updated Information Requested of the Auditor ................................................................................................................................................................................... 26 Financial Reports ........................................................................................................................................................................................................................................................... 26 Summary Financial Information ................................................................................................................................................................................................................................... 26

PENSION AND RETIREMENT OBLIGATIONS ............................................................................................................................................................................................................ 29 REGISTRATION, TRANSFER AND EXCHANGE ........................................................................................................................................................................................................ 29 TAX EXEMPTION ............................................................................................................................................................................................................................................................. 30 QUALIFIED TAX-EXEMPT OBLIGATIONS ................................................................................................................................................................................................................. 32 LIMITED CONTINUING DISCLOSURE ........................................................................................................................................................................................................................ 33 THE UNDERTAKING ....................................................................................................................................................................................................................................................... 33

Financial Information Disclosure .................................................................................................................................................................................................................................. 33 Reportable Events Disclosure ....................................................................................................................................................................................................................................... 34 Consequences of Failure of the District to Provide Information .................................................................................................................................................................................. 34 Amendment; Waiver ..................................................................................................................................................................................................................................................... 35 Termination of Undertaking .......................................................................................................................................................................................................................................... 35 Additional Information .................................................................................................................................................................................................................................................. 35 Dissemination of Information; Dissemination Agent ................................................................................................................................................................................................... 35

OPTIONAL REDEMPTION .............................................................................................................................................................................................................................................. 36 The 2013A Bonds .......................................................................................................................................................................................................................................................... 36 The 2013B Bonds .......................................................................................................................................................................................................................................................... 36

MANDATORY REDEMPTION ........................................................................................................................................................................................................................................ 36 LITIGATION ...................................................................................................................................................................................................................................................................... 37 FINAL OFFICIAL STATEMENT AUTHORIZATION ................................................................................................................................................................................................... 37 INVESTMENT RATING ................................................................................................................................................................................................................................................... 37 DEFEASANCE ................................................................................................................................................................................................................................................................... 37 CERTAIN LEGAL MATTERS .......................................................................................................................................................................................................................................... 38 UNDERWRITING .............................................................................................................................................................................................................................................................. 38 FINANCIAL ADVISOR..................................................................................................................................................................................................................................................... 38 CERTIFICATION ............................................................................................................................................................................................................................................................... 39 APPENDIX A - EXCERPTS OF FISCAL YEAR 2012 AUDITED FINANCIAL STATEMENTS 2 APPENDIX B - DESCRIBING BOOK-ENTRY-ONLY ISSUANCE 3 APPENDIX C - BOND INSURANCE AND SPECIMEN MUNICIPAL BOND INSURANCE POLICY 5 APPENDIX D - PROPOSED FORMS OF OPINION OF BOND COUNSEL 7

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Country Club Hills Park District, Cook County, Illinois $4,390,000 General Obligation Park Bonds (Alternate Revenue Source), Series 2013A $467,000 General Obligation Limited Tax Park Bonds, Series 2013B

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BOND ISSUE SUMMARY

This Bond Issue Summary is expressly qualified by the entire Final Official Statement, which is provided for the convenience of potential investors and which should be reviewed in its entirety by potential investors. The following descriptions apply equally to the 2013A Bonds and 2013B Bonds. Other terms specific to each series are provided separately herein. Issuer: Country Club Hills Park District, Cook County, Illinois. Dated Date: Date of delivery (expected to be on or about November 5, 2013). Authorization: The Bonds are authorized under the Local Government Debt Reform Act of the

State of Illinois, as amended, the Park District Code of the State of Illinois, as supplemented and amended, and an ordinance to be adopted by the Board of Park Commissioners of the District on October 17, 2013.

Investment Rating: The Bonds have been rated “A” (Stable Outlook) from Standard & Poor’s, a

Division of the McGraw Hill Companies. See “INVESTMENT RATING” herein.

Bond Registrar/Paying Agent: Amalgamated Bank of Chicago, Chicago, Illinois. Delivery: The Bonds are expected to be delivered on or about November 5, 2013. Book-Entry Form: The Bonds will be registered in the name of Cede & Co. as nominee for The

Depository Trust Company (“DTC”), New York, New York. DTC will act as securities depository of the Bonds. See APPENDIX B herein.

Financial Advisor: Speer Financial, Inc., Chicago, Illinois. Underwriter: Ruan Securities, a Division of D.A. Davidson & Co., Des Moines, IA.


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THE 2013A BONDS

Issue: $4,390,000 General Obligation Park Bonds (Alternate Revenue Source), Series 2013A.

Interest Due: Each June 1 and December 1, commencing June 1, 2014. Principal Due: December 1, commencing December 1, 2014 through 2026 and 2028, as detailed below. Optional Redemption: The 2013A Bonds maturing on or after December 1, 2023, are callable at the option of the District on

any date on or after December 1, 2022, at a price of par plus accrued interest. See “OPTIONAL REDEMPTION – The 2013A Bonds” herein.

Security: The 2013A Bonds are valid and legally binding upon the District and are payable (i) from proceeds

received by the District from the issuance of its general obligation bonds or notes to the fullest extent permitted by law, including Section 15.01 of the Local Government Debt Reform Act of the State of Illinois, as amended, and Section 6-4 of the Park District Code of the State of Illinois, as amended, (ii) from such other funds of the District as may be lawfully available and annually appropriated for such payment, and (iii) from ad valorem property taxes levied against all of the taxable property in the District without limitation as to rate or amount, except that the rights of the owners of the 2013A Bonds and the enforceability of the 2013A Bonds may be limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. See “DESCRIPTION OF THE 2013A BONDS” herein.

Bond Insurance: The scheduled payment of principal of and interest on the 2013A Bonds when due will be guaranteed

under a municipal bond insurance policy to be issued concurrently with the delivery of the 2013A Bonds by BUILD AMERICA MUTUAL ASSURANCE COMPANY. See APPENDIX C herein.

Purpose: The proceeds of the 2013A Bonds will be used to (i) currently refund the District’s outstanding

General Obligation Park Bonds (Alternate Revenue Source), Series 2003A, due December 1, 2014-2024, (ii) finance certain capital improvements in the District, and (iii) pay the costs of issuance of the 2013A Bonds. See “PLAN OF FINANCING – The 2013A Bonds” and “THE PROJECTS” herein.

Tax Exemption: Chapman and Cutler LLP, Chicago, Illinois, will provide an opinion as to the tax exemption of the

2013A Bonds as discussed under “TAX EXEMPTION” in this Final Official Statement. Interest on the 2013A Bonds is not exempt from present State of Illinois income taxes.

Denomination: $5,000 or integral multiples thereof. Bank Qualification: The 2013A Bonds are “qualified tax-exempt obligations” under Section 265(b)(3) of the Internal

Revenue Code of 1986, as amended. See “QUALIFIED TAX-EXEMPT OBLIGATIONS” herein.

AMOUNTS, MATURITIES, INTEREST RATES, YIELDS AND CUSIP NUMBERS Principal Due Interest CUSIP Principal Due Interest CUSIP Amount Dec. 1 Rate Yield Number Amount Dec. 1 Rate Yield Number $235,000 ...... 2014 2.000% 0.800% 22234M CN1 $285,000 ...... 2021 3.000% 3.050% 22234M CV3 240,000 ...... 2015 2.000% 1.000% 22234M CP6 295,000 ...... 2022 3.500% 3.250% 22234M CW1 245,000 ...... 2016 3.000% 1.350% 22234M CQ4 305,000 ...... 2023 4.000% 3.400% 22234M CX9 250,000 ...... 2017 3.000% 1.650% 22234M CR2 315,000 ...... 2024 4.000% 3.550% 22234M CY7 260,000 ...... 2018 3.000% 2.100% 22234M CS0 330,000 ...... 2025 4.000% 3.700% 22234M CZ4 270,000 ...... 2019 3.000% 2.450% 22234M CT8 345,000 ...... 2026 4.000% 3.900% 22234M DA8 275,000 ...... 2020 3.000% 2.750% 22234M CU5

$740,000 ............. 5.000% Term Bonds due December 1, 2028 Yield ..........4.100% 22234M DC4

For further details see “MANDATORY REDEMPTION” herein.


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THE 2013B BONDS

Issue: $467,000 General Obligation Limited Tax Park Bonds, Series 2013B.

Interest Due: November 15, 2014. Principal Due: November 15, 2014, as detailed below. Optional Redemption: The 2013B Bonds are not subject to optional redemption prior to maturity. Security: In the opinion of Bond Counsel, the 2013B Bonds are valid and legally binding upon the District

and are payable from any funds of the District legally available for such purpose, and all taxable property in the District is subject to the levy of taxes to pay the same without limitation as to rate, except that the rights of the owners of the 2013B Bonds and the enforceability of the 2013B Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. The amount of said taxes that may be extended to pay the 2013B Bonds is, however, limited as provided by law. See “DESCRIPTION OF THE 2013B BONDS” herein.

Purpose: The proceeds of the 2013B Bonds will be used to (i) fund the debt service due on December 1,

2013 on the District’s Series 2003A Bonds, (ii) finance certain capital improvements within the District and (iii) pay the costs of issuance of the 2013B Bonds. See “THE PROJECTS” herein

Tax Exemption: Chapman and Cutler LLP, Chicago, Illinois, will provide an opinion as to the tax exemption of

the 2013B Bonds as discussed under “TAX EXEMPTION” in this Final Official Statement. Interest on the 2013B Bonds is not exempt from present State of Illinois income taxes.

Denomination: $1,000 or integral multiples thereof. Bank Qualification: The 2013B Bonds are “qualified tax-exempt obligations” under Section 265(b)(3) of the Internal

Revenue Code of 1986, as amended. See “QUALIFIED TAX-EXEMPT OBLIGATIONS” herein.

AMOUNT, MATURITY, INTEREST RATE, YIELD AND CUSIP NUMBER

Principal Due Interest CUSIP Amount Nov. 15 Rate Yield Number $467,000 ....... 2014 2.000% 0.900% 22234M DD2


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COUNTRY CLUB HILLS PARK DISTRICT Cook County, Illinois

Board of Park Commissioners

Apreal Williamson President

Aurthur Mooring Vice President

Jennifer Braun-Denton

Treasurer

Lilly Gibson (Vacant) Commissioner Commissioner

______________________________

Officials David Santori, Esq. JoEtta Smith Lee Howard District Attorney Secretary Governmental Accounting, Inc.

DESCRIPTION OF THE 2013A BONDS Security: Alternate Revenue Sources and Tax Levy

The General Obligation Park Bonds (Alternate Revenue Source), Series 2013A (the “2013A Bonds”) are valid and legally binding upon the County Club Hills Park District, Cook County, Illinois (the “District”) and are payable (i) from proceeds received by the District from the issuance of its general obligation bonds or notes to the fullest extent permitted by law, including Section 15.01 of the Local Government Debt Reform Act of the State of Illinois, as amended (the “Debt Reform Act”), and Section 6-4 of the Park District Code of the State of Illinois, as amended (the “Park Code”), (ii) from such other funds of the District as may be lawfully available and annually appropriated for such payment (together with (i), the “Pledged Revenues”), and (iii) from ad valorem property taxes levied against all of the taxable property in the District without limitation as to rate or amount (the “Pledged Taxes” and together with the Pledged Revenues, the “Pledged Moneys”).

In the ordinance authorizing the issuance of the 2013A Bonds (the “2013A Bond Ordinance”), the District covenants and agrees with the purchasers and the owners of the 2013A Bonds that so long as any of the 2013A Bonds remain outstanding, the District will take no action or fail to take any action which in any way would adversely affect the ability of the District to collect the Pledged Revenues or, except for abatement of tax levies as permitted in the 2013A Bond Ordinance, to levy and collect the Pledged Taxes. The District and its officers will comply with all present and future applicable laws in order to assure that the Pledged Revenues will be available and that the Pledged Taxes will be levied, extended and collected as provided in the 2013A Bond Ordinance and deposited in the hereinafter defined 2013A Bond Fund.


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The 2013A Bond Ordinance provides for the levy of ad valorem taxes, unlimited as to rate or amount, upon all taxable property within the District in amounts sufficient to pay, as and when due, all principal of and interest on the 2013A Bonds. Such 2013A Bond Ordinance will be filed with the County Clerk of Cook County, Illinois (the “County Clerk”), and will serve as authorization to the County Clerk to extend and collect the property taxes as set forth in such 2013A Bond Ordinance to pay the 2013A Bonds. For the purpose of providing funds required to pay the interest on the 2013A Bonds promptly when and as the same falls due, and to pay and discharge the principal thereof at maturity, the District covenants and agrees with the purchasers and the owners of the 2013A Bonds that the District will deposit the Pledged Revenues into the 2013A Bond Fund. The Pledged Revenues are pledged to the payment of the 2013A Bonds and the Board of Park Commissioners of the District (the “Board”) covenants and agrees to provide for, budget, collect and apply the Pledged Revenues to the payment of the 2013A Bonds and the provision of not less than an additional 0.25 times debt service on the 2013A Bonds. Highlights of Alternate Bonds Section 15 of the Debt Reform Act provides that whenever there exists for a governmental unit (such as the District) a revenue source, the District may issue its general obligation bonds payable from any revenue source, and such general obligation bonds may be referred to as “alternate bonds.” Such bonds are general obligation debt payable from the pledged revenues with the general obligation of the District as back-up security. The Debt Reform Act prescribes several conditions that must be met before alternate bonds payable from a revenue source may be issued: First, alternate bonds must be issued for a lawful corporate purpose. If issued payable from a revenue source, which revenue source is limited in its purposes or applications, then the alternate bonds can only be issued for such limited purposes or applications. Second, the question of issuance must be submitted to referendum if, within the time provided by law following publication of an authorizing resolution and notice of intent to issue alternate bonds, a petition signed by the requisite number of registered voters in the governmental unit is filed. Third, an issuer must demonstrate that the pledged revenues are sufficient in each year to provide an amount not less than 1.25 times debt service on the alternate bonds payable from such revenue source previously issued and outstanding and the alternate bonds proposed to be issued. The sufficiency of the revenue source must be supported by the most recent audit of the governmental unit. The audit must be for a fiscal year ending not earlier than 18 months prior to the issuance of the alternate bonds. If the audit does not adequately show such revenue source or if such source of revenue is shown to be insufficient, then the determination of sufficiency must be supported by the report of an independent accountant or feasibility analyst, the latter having a national reputation for expertise in such matters. Such report must demonstrate the sufficiency of the revenues and explain how the revenues will be greater than those shown in the audit. Whenever such sufficiency is demonstrated by reference to a schedule of higher rates or charges for enterprise revenues or a higher tax imposition for a revenue source, such higher rates, charges or taxes must be imposed by a resolution adopted prior to the delivery of the alternate bonds. Fourth, the revenue source must be pledged to the payment of the alternate bonds. Last, the governmental unit must covenant to provide for, collect and apply the revenue source to the payment of the alternate bonds and to provide for an amount equal to not less than an additional .25 times debt service.


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As provided in the Debt Reform Act, the District’s determination of the sufficiency of the Pledged Revenues will be based on a report by Speer Financial, Inc., Chicago, Illinois. The District will comply with all of the aforementioned conditions prior to the issuance of the 2013A Bonds.

General Obligation Park Bonds (Alternate Revenue Source), Series 2013A

Debt Service Coverage Table

Year Pledged Revenues Debt Service Ended: Tax-Exempt Taxable Series The June 1 Limited Bonds(1) Limited Bonds(1) Total 2003A(2) Bonds Total Coverage 2014 .... $458,603 $89,370 $547,973 $ 224,675 $ 89,367 $ 314,042 1.74 X 2015 .... 463,900 75,900 539,800 0 388,825 388,825 1.39 X 2016 .... 465,900 73,900 539,800 0 389,075 389,075 1.39 X 2017 .... 469,900 69,900 539,800 0 388,000 388,000 1.39 X 2018 .... 472,900 66,900 539,800 0 385,575 385,575 1.40 X 2019 .... 476,900 62,900 539,800 0 387,925 387,925 1.39 X 2020 .... 480,900 58,900 539,800 0 389,975 389,975 1.38 X 2021 .... 486,900 53,900 540,800 0 386,800 386,800 1.40 X 2022 .... 490,900 49,900 540,800 0 388,400 388,400 1.39 X 2023 .... 495,900 44,900 540,800 0 388,963 388,963 1.39 X 2024 .... 501,900 38,900 540,800 0 387,700 387,700 1.39 X 2025 .... 507,900 32,900 540,800 0 385,300 385,300 1.40 X 2026 .... 514,900 25,900 540,800 0 387,400 387,400 1.40 X 2027 .... 521,900 18,900 540,800 0 388,900 388,900 1.39 X 2028 .... 531,900 9,900 541,800 0 388,000 388,000 1.40 X 2029 .... 544,900 0 544,900 0 389,500 389,500 1.40 X Total ......................................................... $224,675 $5,909,704 $6,134,379

Notes: (1) Proceeds from the annual issuance of one year limited bonds. 2014 reflects the actual proceeds from the sale of the District's 2013B and 2013C Bonds. 2015 and thereafter assumes the limited tax bonds are issued annually at an interest rate of 2.50% for tax-exempt and 5.0% for taxable. Proceeds are net of estimated costs of issuance. It is anticipated that overall debt service will be less than the $569,306.85 debt service extension base.

(2) Excludes the Refunded Bonds.

Abatement of Pledged Taxes

Whenever the Pledged Revenues are available to pay the principal of and interest on the 2013A Bonds when due, so as to enable the abatement of the Pledged Taxes levied for the same, the Board or the officers of the District acting with proper authority, will direct the deposit of such Pledged Revenues into the “Alternate Bond and Interest Fund of 2013” (the “2013A Bond Fund”) or into an escrow account created solely for such purpose, and will direct the abatement of the Pledged Taxes by the amount of the Pledged Revenues so deposited, and proper notification of such abatement will be filed with the County Clerk of Cook County, Illinois, in a timely manner to effect such abatement. None of the Pledged Taxes will be abated unless Pledged Revenues in an amount at least equal to the amount to be abated shall have been deposited in the 2013A Bond Fund. Bond Fund The District will deposit the appropriate Pledged Revenues and the Pledged Taxes into a separate 2013A Bond Fund, which is a trust fund established for the purpose of carrying out the covenants, terms and conditions imposed upon the District by the 2013A Bond Ordinance. The 2013A Bonds are secured by a pledge of all of the monies on deposit in the 2013A Bond Fund, and such pledge is irrevocable until the 2013A Bonds have been paid in full or until the obligations of the District are discharged under the 2013A Bond Ordinance.


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Additional Bonds

The District is authorized to issue from time to time additional bonds payable from the Pledged Revenues as permitted by law and such additional bonds may share ratably and equally in the Pledged Revenues with the 2013A Bonds; provided, however, that no such additional bonds shall be issued except in accordance with the provisions of the Debt Reform Act. Treatment of Bonds as Debt

The 2013A Bonds will be payable from the Pledged Moneys and will not constitute an indebtedness of the District within the meaning of any constitutional or statutory limitation, unless the Pledged Taxes will have been extended pursuant to the general obligation, full faith and credit promise supporting the 2013A Bonds, in which case the amount of the outstanding 2013A Bonds will be included in the computation of indebtedness of the District for purposes of all statutory provisions or limitations until such time as an audit of the District shows that the 2013A Bonds have been paid from the Pledged Revenues for a complete fiscal year, in accordance with the Debt Reform Act. Certain Risk Factors

The ability of the District to pay the 2013A Bonds from the Pledged Revenues may be limited by circumstances beyond the control of the District. There is no guarantee that the Pledged Revenues will continue to be available at current levels. There is no guarantee that the District will continue to have authority under State law to issue bonds or notes, to levy taxes for general corporate purposes at existing rates or to appropriate the Pledged Revenues for the payment of the 2013A Bonds. In addition, market conditions may limit the feasibility of any future financings that the District may undertake to pay the 2013A Bonds. To the extent that Pledged Revenues may be insufficient to pay the 2013A Bonds, the 2013A Bonds are to be paid from the Pledged Taxes. If the Pledged Taxes are ever extended for the payment of the 2013A Bonds, the amount of the 2013A Bonds then outstanding will be included in the computation of indebtedness of the District for purposes of all statutory provisions or limitations until such time as an audit of the District shows that the 2013A Bonds have been paid from the Pledged Revenues for a complete fiscal year.

DESCRIPTION OF THE 2013B BONDS

The General Obligation Limited Tax Park Bonds, Series 2013B (the “2013B Bonds”), are limited bonds and are being issued pursuant to the provisions of the Park Code and the Debt Reform Act, and are further authorized by an ordinance expected to be adopted by the Board on the 17th day of October, 2013 (the “Limited Bond Ordinance”). Although the obligation of the District to pay the 2013B Bonds is a general obligation under the Park Code and all taxable property in the District is subject to the levy of taxes to pay the 2013B Bonds without limitation as to rate, the amount of said taxes that will be extended to pay the 2013B Bonds is limited by the Property Tax Extension Limitation Law of the State of Illinois, as amended (the “Limitation Law”).

The Debt Reform Act provides that the 2013B Bonds are payable from the debt service extension base of the

District (the "Base"), which is an amount equal to that portion of the extension for the District for the 1994 levy year constituting an extension for payment of principal and interest on bonds issued by the District without referendum, but not including alternate bonds issued under Section 15 of the Debt Reform Act or refunding obligations issued to refund or to continue to refund obligations of the District initially issued pursuant to referendum, increased each year, commencing with the 2009 levy year, by the lesser of 5% or the percentage increase in the Consumer Price Index (as defined in the Limitation Law) during the 12-month calendar year preceding the levy year. The Limitation Law further provides that the annual amount of taxes to be extended to pay the 2013B Bonds and all other limited bonds heretofore and hereafter issued by the District shall not exceed the Base.


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The 2013B Bonds constitute one of four series of limited bonds of the District that are payable from the Base.

Payments on the 2013B Bonds from the Base will be made on a parity with the payments on the District’s outstanding General Obligation Limited Tax Park Bonds, Series 2012A, Taxable General Obligation Limited Tax Park Bonds, Series 2012B, and the District’s Taxable General Obligation Limited Tax Park Bonds, Series 2013C (the “2013C Bonds”) which were issued simultaneously with the issuance of the 2013A Bonds and the 2013B Bonds (collectively, the “Bonds”). The District is authorized to issue from time to time additional limited bonds payable from the Base, as permitted by law, and to determine the lien priority of payments to be made from the Base to pay the District’s limited bonds. The following table provides a summary of the District’s Base.

Non-Referendum Debt Service

Extension Base Margin(1)

Debt Service Debt Service Levy Extension Series Series Series Series Year Base(DSEB)(2) 2012A 2012B 2013B 2013C(3) Total Margin 2012 ............. $559,790 $470,550 $89,240 $ 0 $ 0 $ 559.790 $ 0 2013 ............. 569,307 0 0 476,599 93,032 569,632 (325)(4) 2014 and Thereafter .... 569,307 0 0 0 0 0 569,307 $470,550 $89,240 $476,599 $93,032 $1,129,422

Notes: (1) Source: the District. (2) The original Debt Service Extension Base of $520,856 has increased due to CPI increases of 0.10% for

levy year 2009, 2.70% for levy year 2010, 1.50% for levy year 2011, 3.00% for levy year 2012 and 1.70% for levy year 2013.

(3) The District issued the 2013C Bonds simultaneously with the issuance of the Bonds. (4) The District expects to cover the overage with cash on hand.

THE DISTRICT

District Organization and Services The District, incorporated in 1969, is located in south suburban Cook County, approximately 25 miles south of

downtown Chicago, Illinois. The District primarily serves the City of Country Club Hills (the “City”), as well as nearby unincorporated areas. Neighboring communities include Oak Forest, Flossmoor, Tinley Park, Homewood and Matteson. The District currently serves a population of approximately 16,854.

A five member Board of Park Commissioners, elected at large for overlapping four-year terms, govern the District. A President is elected annually by the Board.

Prior to 2005, the District was unable to provide the range of services needed to meet the community’s needs based on its then current level of revenues. The District had attempted to increase its property tax levy through referendum in order to increase its revenues and service levels, but the referendum attempts had failed. As a result, in 2005 the District entered into an Intergovernmental Cooperation Agreement (the “Intergovernmental Agreement”) with the City. Under the Intergovernmental Agreement, the District transfers a portion of its annual property tax revenues to the City and the City, in turn, is responsible for the operation and maintenance of all parks, facilities and recreational programs. The District remains responsible for any debt service on outstanding obligations of the District. The agreement has an initial term through 2025 and is subject to an automatic renewal for 20 more years unless either party chooses not to renew.


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As a result of the Intergovernmental Agreement, the City and the District feel that park and recreational programs and facilities have been significantly upgraded through additional City support. A full-purpose youth football-soccer field has been constructed and playground equipment has been replaced. The consolidation of park and recreational services within the City government has allowed the City to provide for substantial programmatic and capital expansion of these community services. A significant amount of new equipment has been purchased and new recreational fields have been provided with programs now being offered to residents of all ages.

The City maintains 143 acres of park land (85 owned and 58 leased) 13 park sites and 8 buildings. City of Country Club Hills

The City, a home-rule community under the Illinois Constitution as voted by a referendum held on November 2, 1993, was incorporated in 1958 and had a population of 16,541 as of the 2010 Census, representing an increase of 2.3% over the 2000 Census population of 16,169.

The City provides a full range of municipal services with the following departments: finance, community development, fire, police, public works, water and public relations. The City owns and operates its own water distributions system which supplies Lake Michigan water purchased from the Village of Oak Lawn (which in turn purchases such water from the City of Chicago). The City owns and operates its wastewater distribution system with sanitary sewage treatment provided by the Metropolitan Water Reclamation District of Chicago. Natural gas is supplied by Nicor Gas and electricity is provided by Commonwealth Edison. Education Elementary education is provided by Cook County School District Number 144 (Prairie-Hills), Cook County School District Number 145 (Arbor Park), Cook County School District Number 160 (Country Club Hills) and Cook County School District Number 161 (Flossmoor). Rich Township High School District Number 227 and Bremen Community High School District Number 228 operate in the District. Vocational, continuing education and college transfer classes are available from the South Suburban College Community College District 510 as well as Prairie State College Community College District 515. District residents have access to public and private colleges and universities located throughout the Chicago metropolitan area. Transportation The Interstates 57 and 80 cross the City with a full interchange for Interstate 57 located on 167th Street at the northwest corner of the City. Interstate 57 provides nearby access to both Interstate 80 and the Interstate 294, the Tri-State Tollway. Metra, Chicago’s regional commuter rail authority, provides commuter service to Chicago’s “Loop” business district with a station at 159th Street and Cicero Avenue in the neighboring City of Oak Forest. O’Hare International Airport lies approximately 35 miles north of the City and Midway International Airport lies approximately 20 miles north of the City.


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SOCIOECONOMIC INFORMATION

The following statistics principally pertain to the City with additional comparisons with Cook County and the State of Illinois (the “State”).

Employment

Substantial employment is available throughout the Chicago metropolitan area. Numerous employers are located within the communities surrounding the City.

The District is primarily residential in character (approximately 76% of the 2012 EAV). The following

represents certain major employers located in nearby communities.

Major Area Employers(1) Approximate Location Name Product/Service Employment Hazel Crest ......... Advocate South Suburban Hospital .......... Hospital .................................................... 1,400 Olympia Fields ...... St. James Health ......................... Hospital .................................................... 900 Oak Forest .......... Oak Forest Health Center .................. Specialty Hospital .......................................... 525 Matteson ........... Manheim Chicago .......................... Wholesale Auto Auction ...................................... 425 Hazel Crest ......... Lanco International, Inc. ................. Construction and Mining Machinery ........................... 350 Hazel Crest ......... Mi-Jack Products, Inc..................... Construction Machinery ...................................... 350 Tinley Park ......... American Sale Corporation ................. Sporting and Recreational Goods ............................. 300 Tinley Park ......... Panduit Corporation ...................... Networking Accessories ...................................... 300 Tinley Park ......... St. Coletta's of Illinois ................. Contract Packaging and Assembly ............................. 300 Tinley Park ......... Southwest Community Services, Inc. ........ Plastic Products ............................................ 220 Matteson ............ Ace Hardware Corp., Paint Division ........ Paints and Coatings ......................................... 200 Markham ............. Pace ..................................... Local and Suburban Transit .................................. 200 Hazel Crest ......... Fitzsimmons Surgical Supply Co. ........... Medical and Hospital Equipment .............................. 175 Homewood ............ Benefit Administrative Systems, LLC ....... Medical Claims Processing ................................... 150 Tinley Park ......... Best-Tronics Manufacturing, Inc. .......... Communications Equipment .................................... 150 Matteson ............ Clarence Davids & Co...................... Landscaping Services ........................................ 150 Hazel Crest ......... Meany, Inc. .............................. Electrical Contractors ...................................... 150 Oak Forest .......... Shay Health Care Services, Inc. ........... Home Health Care Service .................................... 150 Oak Forest .......... Vicom Productions, Inc. ................... Commercial Bakeries ......................................... 150

Note: (1) Source: 2013 Illinois Manufacturers Directory, 2013 Illinois Services Directory and a selective telephone survey.

The following tables show employment by industry and by occupation for the City, Cook County (the “County”) and the State of Illinois (the “State”) as reported by the U.S. Census Bureau 2007-2011 American Community Survey 5-year estimated values.

Employment By Industry(1)

The City Cook County State of Illinois Classification Number Percent Number Percent Number Percent Agriculture, Forestry, Fishing, Hunting, and Mining ......... 9 0.12% 4,316 0.18% 63,960 1.06% Construction ............................................... 104 1.36% 123,469 5.08% 343,232 5.68% Manufacturing .............................................. 493 6.45% 267,783 11.02% 775,663 12.83% Wholesale Trade............................................. 209 2.73% 71,321 2.94% 196,738 3.26% Retail Trade ............................................... 748 9.79% 240,683 9.91% 659,708 10.92% Transportation and Warehousing, and Utilities ............... 1,112 14.55% 152,899 6.29% 355,486 5.88% Information ................................................ 275 3.60% 61,250 2.52% 135,688 2.25% Finance, Insurance, Real Estate, Rental and Leasing ......... 665 8.70% 210,438 8.66% 466,468 7.72% Professional, Scientific, Management, Administrative, and Waste Management Services .............................. 454 5.94% 322,649 13.28% 662,987 10.97% Educational, Health and Social Services ..................... 2,441 31.94% 530,526 21.84% 1,337,455 22.13% Arts, Entertainment, Recreation, Accommodation and Food Services.............................................. 311 4.07% 231,014 9.51% 524,925 8.69% Other Services (except public administration) ............... 313 4.10% 121,008 4.98% 288,538 4.77% Public administration ....................................... 508 6.65% 91,913 3.78% 232,923 3.85% Total .................................................... 7,642 100.00% 2,429,269 1000.0% 6,043,771 100.00%

Note: (1) Source: U.S. Bureau of the Census, American Community Survey, 2007 to 2011 estimates.


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Employment By Occupation(1)

The City Cook County State of Illinois Classification Number Percent Number Percent Number Percent Management, Professional and Related Occupations ............. 3,041 39.79% 900,655 37.08% 2,167,571 35.86% Service Occupations .......................................... 1,092 14.29% 424,830 17.49% 1,007,434 16.67% Sales and Office Occupations ................................. 2,135 27.94% 617,135 25.40% 1,550,202 25.65% Natural Resources, Construction, Extraction, and Maintenance . 491 6.43% 162,266 6.68% 474,566 7.85% Production, Transportation, and Material Moving .............. 883 11.55% 324,383 13.35% 843,998 13.96% Total ..................................................... 7,642 100.00% 2,429,269 100.00% 6,043,771 100.00%

Note: (1) Source: U.S. Bureau of the Census, American Community Survey, 2007 to 2011 estimates.

Unemployment rates for the City, Cook County and the State of Illinois are shown below.

Annual Average Unemployment Rates(1)

Calendar The Cook State of Year City County Illinois

2003 ................ 10.7% 7.4% 6.7% 2004 ................ 9.9% 6.7% 6.2% 2005 ................ 9.5% 6.4% 5.8% 2006 ................ 7.2% 4.8% 4.6% 2007 ................ 8.1% 5.2% 5.1% 2008 ................ 10.0% 6.4% 6.4% 2009 ................ 16.0% 10.4% 10.0% 2010 ................ 16.3% 10.8% 10.4% 2011 ................ 15.6% 10.3% 9.7% 2012 ................ 14.0% 9.3% 8.9% 2013(2) ............. NA 9.8% 9.0%

Notes: (1) Source: Illinois Department of Employment Security, updated

April 2013. (2) Preliminary rates for the month of August 2013.

Housing

The U.S. Census Bureau 5-year estimated values reported that the median value of the City’s owner-occupied

homes was $161,900. This compares to $256,900 for the County and $198,500 for the State. The following table represents the five year distribution of average market value of specified owner-occupied units for the City, the County and the State at the time of the 2007-2011 American Community Survey.

Specified Owner-Occupied Units(1) The City Cook County State of Illinois Value Number Percent Number Percent Number Percent Less than $50,000 .................. 173 3.4% 32,251 2.8% 218,208 6.6% $50,000 to $99,999 ................. 571 11.1% 58,161 5.0% 451,967 14.2% $100,000 to $149,999 .............. 1,385 26.9% 115,458 10.0% 464,158 14.1% $150,000 to $199,999 ............... 1,457 28.3% 181,081 15.7% 518,957 14.9% $200,000 to $299,999 ............... 1,205 23.4% 310,631 26.9% 725,004 21.3% $300,000 to $499,999 ............... 291 5.7% 303,331 26.2% 613,486 19.5% $500,000 to $999,999 ............... 46 0.9% 125,991 10.9% 234,600 7.7% $1,000,000 or more ................. 15 0.3% 29,748 2.6% 53,191 1.6% Total ............................ 5,143 100.0% 1,156,652 100.0% 3,279,571 100.0% Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2007 to 2011.


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Mortgage Status(1) The City Cook County State of Illinois Number Percent Number Percent Number Percent Housing Units with a Mortgage ...... 4,122 80.1% 825,981 71.4% 2,272,745 69.3% Housing Units without a Mortgage .. 1,021 19.9% 330,671 28.6% 1,006,826 30.7% Total ............................ 5,143 100.0% 1,156,652 100.0% 3,279,571 100.0% Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2007 to 2011.

Income

Per Capita Personal Income for the Ten Highest Income Counties in the State(1) Rank 2007-2011 1 ..................... Lake County ................. $38,120 2 ..................... DuPage County ............... 37,849 3 ..................... McHenry County .............. 31,838 4 ..................... Monroe County ............... 31,091 5 ..................... Kendall County .............. 30,565 6 ..................... Will County ................. 29,811 7 ..................... Kane County ................. 29,480 8 ..................... Woodford County ............. 29,475 9 ..................... Cook County ................. 29,335 10 ..................... Sangamon County ............. 28,394

Note: (1) Source: U.S. Bureau of the Census. 2007-2011

American Community 5-Year Estimates.

The following shows the median family income for counties in the Chicago metropolitan area.

Ranking of Median Family Income(1)

IL. Family IL. County Income Rank DuPage County .................... $92,423 1 Lake County ...................... 91,693 2 Kendall County ................... 87,309 3 McHenry County ................... 86,698 4 Will County ...................... 85,488 5 Kane County ...................... 77,998 7 Cook County ...................... 65,039 20 Note: (1) Source: U.S. Bureau of the Census. 2007-2011

American Community 5-Year Estimates.


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The U.S. Census Bureau 5-year estimated values reported that the City had a median family income of $66,500. This compares to $65,842 for the County and $69,658 for the State. The following table represents the distribution of family incomes for the City, the County and the State at the time of the 2007-2011 American Community Survey.

Family Income(1)

The City Cook County State of Illinois Value Number Percent Number Percent Number Percent Under $10,000 ...................... 131 3.1% 63,241 5.3% 131,841 4.2% $10,000 to $14,999 ................. 59 1.4% 39,634 3.3% 86,610 2.7% $15,000 to $24,999 ................. 242 5.7% 100,077 8.4% 224,421 7.1% $25,000 to $34,999 ................. 362 8.6% 105,831 8.8% 260,262 8.3% $35,000 to $49,999 ................. 615 14.5% 147,041 12.3% 389,862 12.4% $50,000 to $74,999 ................. 1,023 24.2% 213,790 17.9% 606,737 19.2% $75,000 to $99,999 ................. 797 18.9% 166,870 13.9% 486,151 15.4% $100,000 to $149,999 ............... 590 14.0% 192,184 16.1% 547,784 17.4% $150,000 to $199,999 ............... 331 7.8% 78,924 6.6% 212,016 6.7% $200,000 or more ................... 78 1.8% 89,204 7.5% 207,841 6.6% Total ............................ 4,228 100.0% 1,196,796 100.0% 3,153,525 100.0% Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2007 to 2011.

The U.S. Census Bureau 5-year estimated values reported that the City had a median household income of

$63,486. This compares to $54,598 for the County and $56,576 for the State. The following table represents the distribution of household incomes for the City, the County and the State at the time of the 2007-2011 American Community Survey.

Household Income(1)

The City Cook County State of Illinois Value Number Percent Number Percent Number Percent Under $10,000 ...................... 221 3.8% 155,944 8.1% 324,506 6.8% $10,000 to $14,999 ................. 208 3.6% 95,215 4.9% 225,927 4.7% $15,000 to $24,999 ................. 352 6.1% 201,175 10.4% 480,204 10.1% $25,000 to $34,999 ................. 492 8.6% 187,616 9.7% 462,115 9.7% $35,000 to $49,999 ................. 851 14.8% 251,609 13.0% 628,998 13.2% $50,000 to $74,999 ................. 1,450 25.3% 345,130 17.8% 884,623 18.5% $75,000 to $99,999 ................. 1,055 18.4% 238,954 12.4% 627,813 13.2% $100,000 to $149,999 ............... 693 12.1% 252,033 13.0% 656,199 13.7% $150,000 to $199,999 ............... 331 5.8% 98,215 5.1% 243,765 5.1% $200,000 or more ................... 88 1.5% 108,880 5.6% 238,852 5.0% Total ............................ 5,741 100.0% 1,934,771 100.0% 4,773,002 100.0% Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2007 to 2011.


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PLAN OF FINANCING

The 2013A Bond proceeds will be used to fund an escrow to currently refund a portion of the District’s outstanding General Obligation Park Bonds (Alternate Revenue Source), Series 2003A, as listed below (the “Refunded Bonds”):

The Refunded Bonds

General Obligation Park Bonds (Alternate Revenue Source), Series 2003A

Outstanding Outstanding Refunded Redemption Redemption Maturities Amount Amount Price Date 12/1/2013 $ 220,000 $ 0 N/A N/A 12/1/2014 230,000 230,000 100.00% 12/5/2013 12/1/2015 240,000 240,000 100.00% 12/5/2013 12/1/2016 250,000 250,000 100.00% 12/5/2013 12/1/2017 260,000 260,000 100.00% 12/5/2013 12/1/2018 275,000 275,000 100.00% 12/5/2013 12/1/2019 290,000 290,000 100.00% 12/5/2013 12/1/2020 305,000 305,000 100.00% 12/5/2013 12/1/2021 320,000 320,000 100.00% 12/5/2013 12/1/2022 335,000 335,000 100.00% 12/5/2013 12/1/2023 355,000 355,000 100.00% 12/5/2013 12/1/2024 370,000 370,000 100.00% 12/5/2013 Total $3,450,000 $3,230,000

The 2013A Bond proceeds will be used to purchase direct full faith and credit obligations of the United States

of America (the “Government Securities”), the principal of which together with interest to be earned thereon will be sufficient (i) to pay when due the interest on the Refunded Bonds as stated above, and (ii) to pay principal of and call premium, if any, on the Refunded Bonds on their respective redemption dates. The bond proceeds will be used to pay the costs of issuing the 2013A Bonds.

The Government Securities will be held in an escrow account created pursuant to an escrow agreement (the “Escrow Agreement”) dated as of November 5, 2013, between the District and Amalgamated Bank of Chicago, Chicago, Illinois, as Escrow Agent (the “Escrow Agent”).

THE PROJECTS The 2013A Bonds

Proceeds of the 2013A Bonds will also be used for financing capital improvements within the District including a parking lot and paving project as well as improvements to community parks and tennis courts. The capital improvements are being completed as a part of the construction of the Country Club Hills Sportsplex (the “SportsPlex”). Current plans for the SportsPlex include five lighted tournament ball fields, five micro football fields, a lighted football practice field, an NCAA sized soccer field, discus and shot-put track event capabilities, a 2.25 mile walking path, trail markers and first aid stations, a 2-story concession building, two retention ponds with lighted fountains and wayfinding signage. The SportsPlex plans also include a 140,000 square foot training and development center that will house additional ballfields, batting cages, basketball courts, a golf driving range, meeting rooms, a first aid station, concessions and locker rooms. The 2013B Bonds

Proceeds of the 2013B Bonds will be used to fund debt service on the District’s outstanding General Obligation Park Bonds (Alternate Revenue Source), Series 2003A, due December 1, 2013. Bond proceeds will also be used to finance certain capital improvements within the District and pay the costs of issuance of the 2013B Bonds.


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DEBT INFORMATION

After issuance of the Bonds, the District will have outstanding $5,711,780 principal amount of general

obligation debt. The District issued its 2013C Bonds simultaneously with the issuance of the Bonds. The 2013C Bonds will be purchased by the District. The District does not expect to issue any other debt in 2013.

General Obligation Bonded Debt(1) (Principal Only)

Less: Total CumulativeCalendar Series Series Series The 2013A The 2013B The 2013C Refunded Outstanding Principal Retired Year 2003A 2012A 2012B Bonds Bonds Bonds(2) Bonds Debt Amount Percent

2013 .... $ 220,000 $457,480 $85,680 $ 0 $ 0 $ 0 $ 0 $ 763,160 $ 763,160 13.36% 2014 .... 230,000 0 0 235,000 467,000 91,620 (230,000) 793,620 1,556,780 27.26% 2015 .... 240,000 0 0 240,000 0 0 (240,000) 240,000 1,796,780 31.46% 2016 .... 250,000 0 0 245,000 0 0 (250,000) 245,000 2,041,780 35.75% 2017 .... 260,000 0 0 250,000 0 0 (260,000) 250,000 2,291,780 40.12% 2018 .... 275,000 0 0 260,000 0 0 (275,000) 260,000 2,551,780 44.68% 2019 .... 290,000 0 0 270,000 0 0 (290,000) 270,000 2,821,780 49.40% 2020 .... 305,000 0 0 275,000 0 0 (305,000) 275,000 3,096,780 54.22% 2021 .... 320,000 0 0 285,000 0 0 (320,000) 285,000 3,381,780 59.21% 2022 .... 335,000 0 0 295,000 0 0 (335,000) 295,000 3,676,780 64.37% 2023 .... 355,000 0 0 305,000 0 0 (355,000) 305,000 3,981,780 69.71% 2024 .... 370,000 0 0 315,000 0 0 (370,000) 315,000 4,296,780 75.23% 2025 .... 0 0 0 330,000 0 0 0 330,000 4,626,780 81.00% 2026 .... 0 0 0 345,000 0 0 0 345,000 4,971,780 87.04% 2027 .... 0 0 0 360,000 0 0 0 360,000 5,331,780 93.35% 2028 .... 0 0 0 380,000 0 0 0 380,000 5,711,780 100.00% Total . $3,450,000 $457,480 $85,680 $4,390,000 $467,000 $91,620 $(3,230,000) $5,711,780

Notes: (1) Source: the District. (2) The District issued the 2013C Bonds simultaneously with the issuance of the Bonds.

Detailed Overlapping Bonded Debt(1)

(As of August 6, 2013) Outstanding Applicable to District Debt Percent(2) Amount Schools: School District Number 144 ............................................ $ 42,305,379 21.91% $ 9,269,109 School District Number 145 ............................................ 26,347,445 1.96% 516,410 School District Number 160 ............................................ 11,316,621 98.65% 11,163,847 School District Number 161 ............................................ 352,960 0.05% 176 High School District Number 227 ....................................... 43,730,000 8.89% 3,887,597 High School District Number 228 ....................................... 15,335,000 9.18% 1,407,753 Community College District Number 510 ................................. 26,124,288 3.77% 984,886 Community College District Number 515 ................................. 12,062,040 2.79% 336,531 Total Schools .................................................................................................... $27,566,308 Others: Cook County ........................................................... $3,616,435,000 0.16% $5,786,296 Cook County Forest Preserve District .................................. 187,950,000 0.16% 300,720 City of Country Club Hills ............................................ 52,333,814 99.68% 52,166,346 Metropolitan Water Rec District of Greater Chicago .................... 2,238,816,507 0.16% 3,582,106 Total Others ..................................................................................................... $61,835,468 Total Schools and Others Overlapping Bonded Debt ................................................................. $89,401,776 Notes: (1) Source: Cook County Clerk. (2) Excludes General Obligation Alternate Revenue Source Bonds which are expected to be repaid from sources other

than property taxes. Includes original principal amounts of capital appreciation bonds. (3) Overlapping percentages are based on 2012 EAV, the most recent available.


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Statement of Bonded Indebtedness(1)

Ratio To Per Capita Amount Equalized Estimated (2010 Pop. Est.

Applicable Assessed Actual 16,541) District EAV of Taxable Property, 2012 .......... $217,150,116 100.00% 33.33% $13,127.99 Estimated Actual Value, 2012 ................... $651,450,348 300.00% 100.00% $39,383.98 Total Direct Bonded Debt ....................... $ 5,711,780 2.63% 0.88% $ 345.31 Less: Self Supporting(2) ...................... (4,610,000) (2.12%) (0.71%) (278.70) Net Direct Bonded Debt ....................... $ 1,101,780 0.51% 0.17% $ 66.61 Overlapping Bonded Debt(3): Schools ....................................... $ 27,566,308 12.69% 4.23% $ 1,666.54 Other ......................................... 61,835,468 28.48% 9.49% 3,738.31 Total Overlapping Bonded Debt................. $ 89,401,776 41.17% 13.72% $ 5,404.86 Net Direct and Total Overlapping Bonded Debt .. $ 90,503,556 41.68% 13.89% $ 5,471.47 Notes: (1) Source: the District. (2) Includes the 2013A Bonds. (3) As of July 9, 2013.

Legal Debt Margin(1)

Non- Referendum Statutory Debt Limit Debt Limit 0.575% of EAV 2.875% of EAV 2012 Equalized Assessed Valuation ................... $217,150,116 Non-Referendum Debt Limitation (0.575% of EAV) ................................... $ 1,248,613 Statutory Debt Limitation (2.875%) ......................................................................... $ 6,243,066 General Obligation Bonded Debt(2): Series 2003A(2)(3) .................................. $ 220,000 Series 2012A ........................................ 457,480 Series 2012B ........................................ 85,680 The 2013A Bonds(3) .................................. 4,390,000 The 2013B Bonds ..................................... 467,000 The 2013C Bonds ..................................... 91,620 Less: Alternate Revenue Source Bonds(3) ............. (4,610,000) Total General Obligation Bonded Debt .............. $ 1,101,780 Total Applicable Debt(2)(4) ..................................................... . $ 1,101,780 $ 1,101,780 Legal Debt Margin(2)(4) ......................................................... . $ 146,833 $ 5,141,286 Notes; (1) Source: the District. (2) Excludes the Refunded Bonds. (3) As general obligation "alternate revenue source bonds" under Illinois statutes, the Series 2003A Bonds,

and the 2013A Bonds do not count against either the overall 2.875% of EAV debt limit or the non-referendum 0.575% of EAV limit for general obligation bonded debt so long as the tax levies to pay the debt service on such bonds is abated annually and not extended.


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PROPERTY ASSESSMENT AND TAX INFORMATION For the 2012 levy year, the District’s EAV was comprised of approximately 76% residential, 20% commercial,

4% industrial and less than one percent farm and railroad property valuations.

District Equalized Assessed Valuation(1) Levy Years 2008 2009 2010 2011 2012

Property Class Residential ................... $231,899,321 $241,764,534 $243,271,498 $185,771,703 $165,066,668 Farm .......................... 140,384 58,805 26,271 26,271 64,570 Commercial .................... 66,478,282 59,491,820 55,190,734 46,629,527 44,407,591 Industrial .................... 10,782,261 9,529,716 10,010,656 9,096,051 7,611,287 Railroad ...................... 0 0 0 0 0 Total ....................... $309,300,248 $310,844,875 $308,499,159 $241,523,552 $217,150,116 Percent Change +(-) ........... 8.14%(2) 0.50% (0.75%) (21.71%) (10.09%) Notes: (1) Source: Cook County Clerk. (2) Percent change based on 2007 EAV of $286,007,141.

Representative Tax Rates(1) (Per $100 EAV) Levy Years Maximum

2008 2009 2010 2011 2012 Allowable District Rates: Corporate .............................. $ 0.243 $ 0.244 $ 0.252 $ 0.327 $ 0.350 0.350 Bonds & Interest ....................... 0.000 0.000 0.020 0.000 0.000 No Limit I.M.R.F. ............................... 0.000 0.000 0.000 0.000 0.000 No Limit Police Protection ...................... 0.000 0.000 0.000 0.000 0.000 0.250 Auditing ............................... 0.000 0.000 0.000 0.000 0.000 0.005 Liability Insurance .................... 0.000 0.000 0.000 0.000 0.000 No Limit Recreation ............................. 0.000 0.000 0.000 0.000 0.000 0.370 Paving and Lighting .................... 0.000 0.000 0.000 0.000 0.000 0.005 Working Cash Funds ..................... 0.000 0.000 0.000 0.000 0.000 0.025 Handicapped Fund ....................... 0.030 0.040 0.040 0.040 0.040 0.040 Workmen's Compensation ................. 0.000 0.000 0.000 0.000 0.000 No Limit Limited Bonds .......................... 0.177 0.172 0.182 0.236 0.271 No Limit Total District Rates(2) .............. $ 0.450 $ 0.456 $ 0.495 $ 0.604 $ 0.661 Cook County ............................ $ 0.415 $ 0.394 $ 0.423 $ 0.462 $ 0.531 Cook County Forest Preserve District ... 0.051 0.049 0.051 0.058 0.063 Consolidated Elections ................. 0.000 0.021 0.000 0.025 0.000 Rich Township (3) ...................... 0.267 0.270 0.286 0.366 0.416 City of Country Club Hills ............. 5.164 5.246 5.810 6.927 8.060 School District 160 .................... 3.057 3.222 3.265 4.241 4.887 Rich Township HS 227 ................... 3.459 3.513 3.705 4.687 5.302 Prairie State Comm College Dist. 515 ... 0.280 0.277 0.293 0.357 0.410 Grande Prairie Public Library Dist. .... 0.265 0.262 0.271 0.357 0.409 Metro Water Reclamation District ....... 0.252 0.261 0.274 0.320 0.370 South Cook Co. Mosq. Abatement ......... 0.009 0.009 0.010 0.012 0.014 Total Tax Rates (2) .................. $13.669 $13.980 $14.883 $18.416 $21.123 Notes: (1) Source: Cook County Clerk. (2) Representative tax rates for other government units are from tax code 32043 which represents

approximately 39.0% of the District's 2012 tax base. (3) Includes General Assistance and Road and Bridge.


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Tax Extensions and Collections(1)

Levy Coll. Taxes Current Collections Year Year Extended Amount Percent 2007 ......... 2008 ............. $1,361,746 $1,318,688 96.84% 2008 ......... 2009 ............. 1,390,408 1,335,259 96.03% 2009 ......... 2010 ............. 1,417,022 1,300,447 91.77% 2010 ......... 2011 ............. 1,526,596 1,440,099 94.33% 2011 ......... 2012 ............. 1,457,775 1,245,071 85.41% 2012 ......... 2013 ............. 1,435,362 --- In Collection --- Note: (1) Source: the District.

Principal City Taxpayers(1)

Taxpayer Name Business/Service 2012 EAV(2) Walmart Prop Tax Department .............. National Retail ...................................... $ 3,124,998 Tucker Development ....................... Shopping Center ...................................... 2,119,887 Tucker Development & AMC Inc.............. Movie Theatres ...................................... 2,074,999 Boca International ....................... Property Development ................................. 1,389,591 Paul & Yang Speer ........................ Heritage Plaza Shopping Center ....................... 907,292 McAllister Property ...................... Real Property ........................................ 777,545 Shurgard 08484 ........................... Storage Facility ..................................... 714,439 IRC ...................................... Shopping Center ...................................... 537,365 Gafni LLC ................................ Gas Station .......................................... 512,498 OLL Education Serv. ...................... Non-Profit Organization .............................. 481,518 Total ........................................................................................ $12,640,132 Ten Largest Taxpayers as Percent of District's 2012 EAV ($217,150,116) ........................ 5.82% Notes: (1) Source: Cook County Clerk. (2) Every effort has been made to research and report the largest taxpayers. However, many of

the taxpayers listed contain multiple parcels, and it is possible that some parcels and their valuations have been overlooked. The 2012 EAV is the most current available.

REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES Real Property Assessment

The County Assessor (the “Assessor”) is responsible for the assessment of all taxable real property within Cook County (the “County”), including that in the District, except for certain railroad property and pollution control facilities, which are assessed directly by the Illinois Department of Revenue (the “Department of Revenue”). For triennial reassessment purposes, Cook County is divided into three districts: west and south suburbs (the “South Tri”), north and northwest suburbs (the “North Tri”), and the City of Chicago (the “City Tri”). The District is located in the South Tri and was reassessed for the 2011 tax levy year.

Real property in the County is separated into classes for assessment purposes. After the County Assessor establishes the fair market value of a parcel of property, that value is multiplied by the appropriate classification percentage to arrive at the assessed valuation (the “Assessed Valuation”) for the parcel. Prior to the 2009 tax levy year, the classification percentages ranged from 16% for certain residential, commercial and industrial property to 36% and 38%, respectively, for other industrial and commercial property. On September 17, 2008, the Cook County Board of Commissioners approved changes to the property classification ordinance. The changes reduced the percentages used to calculate the assessed value of real property in the County for real estate tax purposes. These reductions take effect in the 2009 tax levy year. Such new classification percentages range from 10% for certain residential, commercial and industrial property to 25% for other industrial and commercial property.


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Property is classified for assessment into six basic categories, each of which is assessed (beginning with the 2009 tax levy year) at various percentages of fair market value as follows: Class 1) unimproved real estate - 10%; Class 2) residential - 10%; Class 3) rental-residential - 16%, in tax year 2009, 13% in assessment year 2010, and 10% in assessment year 2011 and subsequent years; Class 4) not-for-profit - 25%; Class 5a) commercial - 25%; Class 5b) industrial - 25%. There are also seven additional categories. Newly constructed industrial properties or substantially rehabilitated sections of existing industrial properties within the County may qualify for a Class 6b assessment level, which assessment level is 10% for the first 10 years and for any subsequent 10-year renewal periods. However, if the incentive is not renewed, the 6b assessment level is 15% in year 11 and 20% in year 12, hereafter reverting to Class 5b. Real estate, which is to be used for industrial or commercial purposes where such real estate has undergone environmental testing and remediation, may be eligible for a Class C assessment level. The Class C assessment level for industrial properties is 10% for the first 10 years, 15% in year 11 and 20% in year 12, thereafter reverting to Class 5b. Class C commercial properties are assessed at 10% for the first 10 years, 15% in year 11 and 20% in year 12, thereafter reverting to Class 5a. Commercial properties that are newly constructed or substantially rehabilitated and are within an area determined to be an area in need of commercial development may be classified as Class 7a or 7b property, and will then be assessed at a level of 10% for the first 10 years, 15% in year 11 and 20% in year 12, thereafter reverting to Class 5a. Certain commercial and industrial properties located in zones determined to be in need of substantial revitalization or in an enterprise community could be eligible for Class 8 assessments. The Class 8 assessment level for industrial properties is 10% for the first 10 years and for any subsequent 10-year renewal periods. If the incentive is not renewed, the Class 8 assessment level for industrial properties is 15% in year 11 and 20% in year 12, thereafter reverting to Class 5b. The Class 8 assessment level for commercial properties is 10% for the first 10 years, 15% in year 11 and 20% in year 12, thereafter reverting to Class 5a. Substantially rehabilitated or new construction multi-family residential properties within certain target areas, empowerment or enterprise zones may be eligible for Class 9 categorization. The Class 9 assessment level is 10% for an initial 10-year period, renewable upon application for additional 10-year periods. When the Class 9 assessment level expires, the assessment level reverts to the applicable classification. Rental-residential (Class 3) properties subject to a Section 8 contract that has been renewed under the “Mark Up To Market” option may qualify for a Class S assessment level. The Class S assessment level is 10% for the term of the Section 8 contract renewal under the Mark Up To Market option, and for any additional terms of renewal of the Section 8 contract under the Mark Up To Market option. When the Class S assessment level expires, the assessment level reverts to Class 3. Substantially rehabilitated properties which are designated as Class 3, Class 4, Class 5a or Class 5b and which qualify as Landmark or Contributing buildings may qualify for a Class L assessment level. The Class L assessment level for Class 3, 4 or 5b properties is 10% for the first 10 years and for any subsequent 10-year renewal periods. If the incentive is not renewed, the Class L assessment level is 15% in year 11 and 20% in year 12, thereafter reverting to Class 3, 4 or 5b. Class L commercial properties are assessed at 10% for the first 10 years, 15% in year 11 and 20% in year 12, thereafter reverting to Class 5a.

The Assessor has established procedures enabling taxpayers to contest their proposed Assessed Valuations. Once the Assessor certifies its final Assessed Valuations, a taxpayer can seek review of its assessment by appealing to the Cook County Board of Review, which consists of three commissioners elected by the voters of the County. The Board of Review has the power to adjust the Assessed Valuations set by the Assessor.

Owners of both residential property having six or fewer units and owners of real estate other than residential property with six or fewer units are able to appeal decisions of the Board of Review to the Illinois Property Tax Appeal Board (the “PTAB”), a statewide administrative body. The PTAB has the power to determine the Assessed Valuation of real property based on equity and the weight of the evidence. Taxpayers may appeal the decision of PTAB to either the Circuit Court of Cook County or the Illinois Appellate Court under the Illinois Administrative Review Law.


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As an alternative to seeking review of Assessed Valuations by PTAB, taxpayers who have first exhausted their

remedies before the Board of Review may file an objection in the Circuit Court of Cook County similar to the previous judicial review procedure but with a different standard of proof than that previously required. In addition, in cases where the Assessor agrees that an assessment error has been made after tax bills have been issued, the Assessor can correct any factual error, and thus reduce the amount of taxes due, by issuing a Certificate of Error. Certificates of Error are not issued in cases where the only issue is the opinion of the valuation of the property. Equalization

After the County Assessor has established the Assessed Valuation for each parcel for a given year, and following any revisions by the Board of Review or PTAB, the Illinois Department of Revenue is required by statute to review the Assessed Valuations. The Illinois Department of Revenue establishes an equalization factor (the “Equalization Factor”), commonly called the “multiplier,” for each county to make all valuations uniform among the 102 counties in the State. Under State law, the aggregate of the assessments within each county is to be equalized at 33-1/3% of the estimated fair cash value of real property located within the county prior to any applicable exemptions. One multiplier is applied to all property in Cook County, regardless of its assessment category, except for some farmland property which is not subject to equalization.

Once the Equalization Factor is established, the Assessed Valuation, as revised by the Board of Review or PTAB, is multiplied by the Equalization Factor to determine the equalized assessed valuation (the “EAV”) of that parcel. The EAV for each parcel is the final property valuation used for determination of tax liability. The aggregate EAV for all parcels in any taxing body’s jurisdiction, plus the valuation of property assessed directly by the State, constitutes the total real estate tax base for the taxing body and is the figure used to calculate tax rates (the “Assessment Base”). The following table sets forth the Equalization Factor for Cook County for the last 10 tax levy years.

TAX LEVY YEAR EQUALIZATION FACTOR 2003 2.4598 2004 2.5757 2005 2.7320 2006 2.7076 2007 2.8439 2008 2.9786 2009 3.3701 2010 3.3000 2011 2.9706 2012 2.8056

Exemptions

Public Act 95-644, effective October 17, 2007, made changes to and added a number of property tax exemptions taken by residential property owners. These changes are discussed below.

An annual General Homestead Exemption provides that the EAV of certain property owned and used for residential purposes (“Residential Property”) may be reduced by $5,000 for assessment years 2004 through assessment year 2007. Additionally, the reduction may be $5,500 for assessment year 2008, and $6,000 for assessment years 2009 and forward (the “General Homestead Exemption”).


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The Alternative General Homestead Exemption (the “Alternative General Homestead Exemption”) caps EAV

increases for homeowners (who also reside on the property as their principal place of residence) at 7% a year, up to a certain maximum each year as defined by the statute. Any amount of increase that exceeds the maximum exemption as defined is added to the 7% increase and is part of that property’s taxable EAV. Homes that do not increase by at least 7% a year are entitled, in the alternative, to the General Homestead Exemption as discussed above.

The Base Year for purposes of calculation of the Alternative General Homestead Exemption is 2002 for properties located in the City Tri, 2003 for properties located in the North Tri and 2004 for properties located in the South Tri. The Base Homestead Value is the EAV of the homestead property minus the General Homestead Exemption for that year: $4,500 for years prior to 2004; $5,000 for 2004 through 2007; $5,500 for 2008 and $6,000 for the year 2009 and thereafter.

For properties in the City Tri, the Alternative General Homestead Exemption cannot exceed $33,000 for assessment year 2006 (except as noted below), $26,000 for assessment year 2007, $20,000 for assessment year 2008 and $6,000 thereafter. For properties in the North Tri, the Alternative General Homestead Exemption cannot exceed $20,000 for assessment year 2006, $33,000 for assessment year 2007, $26,000 for assessment year 2008, $20,000 for assessment year 2009 and $6,000 thereafter. For properties in the South Tri, the Alternative General Homestead Exemption cannot exceed $20,000 for assessment years 2006 and 2007, $33,000 for assessment year 2008, $26,000 for assessment year 2009, $20,000 for assessment year 2010 and $6,000 thereafter.

Furthermore, only in the City Tri and only for assessment year 2006, the maximum exemption amount may be increased to: (i) $40,000, provided that the EAV of the property for assessment year 2006 exceeds the EAV of that property for assessment year 2002 by an amount equal to or greater than 100%, or (ii) $35,000 provided that the EAV of the property for assessment year 2006 exceeds the EAV of that property for assessment year 2002 by an amount greater than 80% but not more than 100%.

Finally, the Long-Time Occupant Homestead Exemption applies to those counties subject to the Alternative General Homestead Exemption, including Cook County. Beginning with assessment year 2007 and thereafter, the EAV of homestead property of a taxpayer who has owned the property for at least 10 years (or 5 years if purchased with certain government assistance) and who has a household income of $100,000 or less (“Qualified Homestead Property”) may increase by no more than 10% per year. If the taxpayer’s annual income is $75,000 or less, the EAV of the Qualified Homestead Property may increase by no more than 7% per year. There is no exemption limit for Qualified Homestead Properties. Individuals applying for this exemption must comply with the following guidelines: (i) continuously occupy their property for 10 years, as of January 1st of the assessment year, and occupy such property as their principal residence or, (ii) continuously occupy their property as their principal place of residence for 5 years, as of January 1st of the assessment year, provided that the property was purchased with certain government assistance.

In addition, the Homestead Improvement Exemption (“Homestead Improvement Exemption”) applies to residential properties that have been improved and to properties that have been rebuilt in the two years following a catastrophic event. The exemption is limited to $45,000 through December 31, 2003, and $75,000 per year beginning January 1, 2004, and thereafter, to the extent the assessed value is attributable solely to such improvements or rebuilding.


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Additional exemptions exist for senior citizens. The Senior Citizens Homestead Exemption (“Senior Citizens

Homestead Exemption”) operates annually to reduce the EAV on a senior citizen’s home by $3,500 in all counties. In addition, for assessment year 2008 and thereafter, the maximum reduction is $4,000 for all counties. Furthermore, property that is first occupied as a residence after January 1 of any assessment year by a person who is eligible for the Senior Citizens Homestead Exemption must be granted a prorata exemption for the assessment year based on the number of days during the assessment year that the property is occupied as a residence by a person eligible for the exemption.

A Senior Citizens Assessment Freeze Homestead Exemption (“Senior Citizens Assessment Freeze Homestead Exemption”) freezes property tax assessments for homeowners who are 65 and older, reside in their property as their principal place of residence and receive a household income not in excess of the maximum income limitation. The maximum income limitation is $50,000 for assessment years 2006 and 2007; for assessment years 2008 and after, the maximum income limitation is $55,000. In general, the exemption grants qualifying senior citizens an exemption based upon a “freeze” of their home’s Assessed Valuation.

Another exemption, available to disabled veterans, may be applied annually to exempt up to $70,000 of the Assessed Valuation of property owned and used exclusively by such veterans or their spouses for residential purposes. However, individuals claiming exemption under the Disabled Persons’ Homestead Exemption (“Disabled Persons’ Homestead Exemption”) or the hereinafter defined Disabled Veterans Standard Homestead Exemption cannot claim the aforementioned exemption.

Also, certain property is exempt from taxation on the basis of ownership and/or use, such as public parks, not-for-profit schools and public schools, churches, and not-for-profit hospitals and public hospitals.

Furthermore, beginning with assessment year 2007, the Disabled Persons’ Homestead Exemption provides an annual homestead exemption in the amount of $2,000 for property that is owned and occupied by certain persons with a disability. However, individuals claiming exemption as a disabled veteran or claiming exemption under the Disabled Veterans Standard Homestead Exemption cannot claim the Disabled Persons’ Homestead Exemption.

In addition, the Disabled Veterans Standard Homestead Exemption (“Disabled Veterans Standard Homestead Exemption”) provides disabled veterans an annual homestead exemption starting with assessment year 2007 and thereafter. Specifically, (i) those veterans with a service-connected disability of 75% are granted an exemption of $5,000 and (ii) those veterans with a service-connected disability of less than 75%, but at least 50%, are granted an exemption of $2,500. Furthermore, the veteran’s surviving spouse is entitled to the benefit of the exemption, provided that the spouse has legal or beneficial title of the homestead, resides permanently on the homestead and does not remarry. Moreover, if the property is sold by the surviving spouse, then an exemption amount not to exceed the amount specified by the current property tax roll may be transferred to the spouse’s new residence, provided that it is the spouse’s primary residence and the spouse does not remarry. However, individuals claiming exemption as a disabled veteran or claiming an exemption under the Disabled Persons’ Homestead Exemption cannot claim the aforementioned exemption.

Also, beginning with assessment year 2007, the Returning Veterans’ Homestead Exemption (“Returning Veterans’ Homestead Exemption”) is available for property owned and occupied as the principal residence of a veteran in the assessment year the veteran returns from an armed conflict while on active duty in the United States armed forces. This provision grants a homestead exemption of $5,000, which is applicable in all counties. In order to apply for this exemption, the individual must pay real estate taxes on the property, own the property or have either a legal or an equitable interest in the property, subject to some limitations. Those individuals eligible for this exemption may claim the exemption in addition to other homestead exemptions, unless otherwise noted.


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Tax Levy

As part of the annual budgetary process of governmental units (the “Units”) with power to levy taxes in the County, proceedings are adopted by the designated body for each Unit each year in which it determines to levy real estate taxes. The administration and collection of real estate taxes is statutorily assigned to the County Clerk and the County Treasurer. After the Units file their annual tax levies, the County Clerk computes the annual tax rate for each Unit. The Cook County Clerk uses the prior year’s EAV to compute the taxing district’s maximum allowable levy. The maximum levy that can be raised for a Unit is the maximum tax rate for that Unit multiplied by the prior year, EAV for all property currently in the district. The prior year’s EAV includes the prior year’s EAV plus the EAV of any new property, the current year value of any annexed property, and any recovered tax increment value, minus any disconnected property for the current year under the Property Tax Extension Limitation Law (“Limitation Law”). The tax rate for a Unit is computed by dividing the lesser of the maximum allowable levy or the actual levy by the current year’s EAV. Property Tax Extension Limitation Law

The Limitation Law is applied after the prior year EAV limitation. The Limitation Law limits the annual growth in the amount of property taxes to be extended for certain Illinois non-home rule units, including the District. The effect of the Limitation Law is to limit the amount of property taxes that can be extended for a taxing body. In addition, general obligation bonds, notes and installment contracts payable from ad valorem taxes, unlimited as to rate and amount, cannot be issued by the affected taxing bodies unless they are approved by referendum, are alternate bonds or are for certain refunding purposes.

The use of prior year EAVs to limit the allowable tax levy may reduce tax rates for funds that are at or near their maximum rates in districts with rising EAVs. These reduced rates and all other rates for those funds subject to the Limitation Law are added together, which results in the aggregate preliminary rate. The aggregate preliminary rate is then compared to the limiting rate. If the limiting rate is more than the aggregate preliminary rate, there is no further reduction in rates due to the Limitation Law. If the limiting rate is less than the aggregate preliminary rate, the aggregate preliminary rate is further reduced to the limiting rate. In all cases, taxes are extended using current year EAV under Section 18-140 of the Property Tax Code.

The District has the authority to levy taxes for many different purposes. See the table entitled “Representative Tax Rates” under “PROPERTY ASSESSMENT AND TAX INFORMATION” herein. The ceiling at any particular time on the rate at which these taxes may be extended for the District is either (i) unlimited (as provided by statute), (ii) initially set by statute but permitted to be increased by referendum, (iii) capped by statute, or (iv) limited to the rate approved by referendum. Public Act 94-0976, effective June 30, 2006, provides that the only ceiling on a particular tax rate is the ceiling set by statute above, at which the rate is not permitted to be further increased by referendum or otherwise. Therefore, taxing districts (such as the District) will have increased flexibility to levy taxes for the purposes for which they most need the money. The total aggregate tax rate for the various purposes subject to the Limitation Law, however, will not be allowed to exceed the District’s limiting rate computed in accordance with the provisions of the Limitation Law.

In general, the annual growth permitted under the Limitation Law is the lesser of 5% or the percentage increase in the Consumer Price Index during the calendar year preceding the levy year. Taxes can also be increased due to new construction, referendum approval of tax rate increases, mergers and consolidations. Local governments, including the District, can issue limited tax bonds in lieu of general obligation bonds that have otherwise been authorized by applicable law. See “DESCRIPTION OF THE 2013B BONDS” herein.


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Extensions

The County Clerk then computes the total tax rate applicable to each parcel of real property by aggregating the tax rates of all of the Units having jurisdiction over the particular parcel. The County Clerk extends the tax by entering the tax (determined by multiplying the total tax rate by the EAV of that parcel for the current assessment year) in the books prepared for the County Collector (the “Warrant Books”) along with the tax rates, the Assessed Valuation and the EAV. The Warrant Books are the County Collector’s authority for the collection of taxes and are used by the County Collector as the basis for issuing tax bills to all property owners. Collections

Property taxes are collected by the County Collector, who is also the County Treasurer, who remits to each Unit its share of the collections. Taxes levied in one year become payable during the following year in two installments, the first due on March 1 and the second on the later of August 1 or 30 days after the mailing of the tax bills. A payment due is deemed to be paid on time if the payment is postmarked on the due date. The first installment is equal to one-half of the prior year’s tax bill; beginning in collection year 2010, this estimated amount was raised to 55% of the prior year’s tax bill. However, if a Certificate of Error is approved by a court or certified on or before November 30 of the preceding year and before the estimated tax bills are prepared, then the first installment is instead equal to one-half of the corrected prior year’s tax bill. The second installment is for the balance of the current year’s tax bill, and is based on the then current tax year levy, assessed value and Equalization Factor, and reflects any changes from the prior year in those factors. The following table sets forth the second installment penalty date for the last 10 tax levy years in Cook County; the first installment penalty date has been March 1 for all such years.

TAX LEVY YEAR SECOND INSTALLMENT

PENALTY DATE 2003 November 15, 2004 2004 November 2, 2005 2005 September 1, 2006 2006 December 3, 2007 2007 November 3, 2008 2008 December 1, 2009 2009 December 13, 2010 2010 November 1, 2011 2011 August 1, 2012 2012 August 1, 2013

It is possible that the changes to the assessment appeals process described above will cause delays similar to those experienced in past years in preparation and mailing of the second installment in future years. The County may provide for tax bills to be payable in four installments instead of two. However, the County has not required payment of tax bills in four installments. During the periods of peak collections, tax receipts are forwarded to each Unit on a weekly basis. Upon receipt of taxes from the County Collector, the District promptly credits the taxes received to the funds for which they were levied.


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At the end of each collection year, the County Collector presents the Warrant Books to the Circuit Court and applies for a judgment for all unpaid taxes. The court orders resulting from the application for judgment provides for an Annual Tax Sale (the “Annual Tax Sale”) of unpaid taxes shown on that year’s Warrant Books. A public sale is held, at which time successful tax buyers pay the unpaid taxes plus penalties. In each such public sale, the collector can use any “automated means.” Unpaid taxes accrue penalties at the rate of 1.5% per month from their due date until the date of sale. Taxpayers can redeem their property by paying the amount paid at the sale, plus a maximum of 12% for each six-month period after the sale. If no redemption is made within the applicable redemption period (ranging from six months to two and one-half years depending on the type and occupancy of the property) and the tax buyer files a petition in the Circuit Court, notifying the necessary parties in accordance with the applicable law, the tax buyer receives a deed to the property. In addition, there are miscellaneous statutory provisions for foreclosure of tax liens.

If there is no sale of the tax lien on a parcel of property at the Annual Tax Sale, the taxes are forfeited and the property becomes eligible to be purchased at any time thereafter at an amount equal to all delinquent taxes and interest accrued to the date of purchase. Redemption periods and procedures are the same as applicable to the Annual Tax Sale.

The Scavenger Sale (the “Scavenger Sale”), like the Annual Tax Sale, is a sale of unpaid taxes. The Scavenger Sale is held every two years on all property on which two or more years’ taxes are delinquent. The sale price of the unpaid taxes is the amount bid at such sale, which may be less than the amount of delinquent taxes. Redemption periods vary from six months to two and a half years depending upon the type and occupancy of the property. Truth in Taxation Law

Legislation known as the Truth in Taxation Law (the “Law”) limits the aggregate amount of certain taxes which can be levied by, and extended for, a taxing district to 105% of the amount of taxes extended in the preceding year unless specified notice, hearing and certification requirements are met by the taxing body. The express purpose of the Law is to require published disclosure of, and hearing upon, an intention to adopt a levy in excess of the specified levels.

FINANCIAL INFORMATION

Budgeting The District follows these procedures in establishing the budgetary data reflected in the financial statements:

1. Prior to July 15, the Treasurer and Director submit to the Board of Commissioners a proposed operating budget for the fiscal year commencing May 1. The operating budget includes proposed expenditures and the means of financing them.

2. Public hearings are conducted at a public meting to obtain taxpayer comments. 3. Prior to September 1, the budget is legally enacted through passage of an ordinance. 4. The Treasurer is authorized to transfer up to 10% of the total budget between budget items within any fund;

however, any revisions that alter the total expenditures of any fund must be approved by the Board of Commissioners.

5. Formal budgetary integration is employed as a management control device during the year. 6. Budgeted amounts are as adopted by the Board of Commissioners.


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Budgets for the General, Special Revenue, Debt Service and Capital Projects Funds are legally adopted on a basis consistent with GAAP. Expenditures may not legally exceed appropriations at the fund level. Any expenditures in excess of the legally adopted appropriation at the fund level must be approved by the Park District Board through a supplemental appropriation. By law, management can make transfers between individual expenditure line items within a fund, but approval by the Board of Commissioners is required in order for management to make transfers between individual funds. The Board may authorize transfers not to exceed 10% of budgeted expenditures for the year. An ordinance must be filed with the county in order for the budget to be amended.

Investment Policy State Statutes authorized the District to invest in obligations of the U.S. Treasury; federally insured bank accounts, credit union accounts or money markets; high-rated short-term corporate obligations; repurchase agreements; and the Illinois Park District Liquid Asset Fund Plus. No Consent or Updated Information Requested of the Auditor

The tables and excerpts (collectively, the “Excerpted Financial Information”) contained in this “FINANCIAL

INFORMATION” section and in APPENDIX A are from the audited financial statements of the District, including the audited financial statements for the fiscal year ended April 30, 2012 (the “2012 Audit”). The 2012 Audit has been prepared by Knutte & Associates, P.C., Certified Public Accountants, Darien, Illinois (the “Auditor”), and approved by formal action of the Board of Park Commissioners. The District has not requested the Auditor to update information contained in the Excerpted Financial Information; nor has the District requested that the Auditor consent to the use of the Excerpted Financial Information in this Final Official Statement. Other than as expressly set forth in this Final Official Statement, the financial information contained in the Excerpted Financial Information has not been updated since the date of the 2012 Audit. The inclusion of the Excerpted Financial Information in this Final Official Statement in and of itself is not intended to demonstrate the fiscal condition of the District since the date of the 2012 Audit. Questions or inquiries relating to financial information of the District since the date of the 2012 Audit should be directed to the District. Financial Reports

The District’s financial statements are audited annually by certified public accountants. The District’s financial

statements are completed on a modified accrual basis of accounting consistent with generally accepted accounting principles applicable to governmental entities. See APPENDIX A for more detail. Summary Financial Information

The following tables are summaries and do not purport to be the complete audits, copies of which are available upon request. See APPENDIX A for excerpts of the District’s 2012 fiscal year audit.


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Statement of Net Assets Government Activities(1)

As of April 30 2008 2009 2010 2011 2012 ASSETS: Current Assets: Cash .............................................. $ 1,092,146 $ 1,207,582 $ 1,473,188 $ 1,590,707 $ 1,882,547 Property Taxes Receivable ......................... 811,975 828,472 779,833 865,421 737,056 Replacement Taxes Receivable ...................... 3,832 4,571 265,875 3,685 6,408 Interfund Receivables/Payables .................... 265,875 265,875 0 0 0 Total Current Assets ............................. $ 2,173,828 $ 2,306,500 $ 2,518,896 $ 2,459,813 $ 2,626,011 Total Assets ..................................... $ 2,173,828 $ 2,306,500 $ 2,518,896 $ 2,459,813 $ 2,626,011 LIABILITIES: Current Liabilities: Accounts Payable .................................. $ 59,845 $ 9,750 $ 1,096 $ 1,616 $ 14,372 Bonds Payable ..................................... 680,900 691,045 701,140 723,235 734,890 Total Current Liabilities ........................ $ 740,745 $ 700,795 $ 702,236 $ 724,851 $ 749,262 Non Current Liabilities - Bonds Payable ............ 4,245,000 4,055,000 3,860,000 3,660,000 3,450,000 Total Non Current Liabilities .................... $ 4,245,000 $ 4,055,000 $ 3,860,000 $ 3,660,000 $ 3,450,000 Total Liabilities ................................ $ 4,985,745 $ 4,755,795 $ 4,562,236 $ 4,384,851 $ 4,199,262 NET ASSETS ......................................... $(2,811,917) $(2,449,295) $(2,043,340) $(1,925,038) $(1,573,251) Unrestricted ....................................... Total Net Assets ................................. $(2,811,917) $(2,449,295) $(2,043,340) $(1,925,038) $(1,573,251) Note: (1) Under the Intergovernmental Agreement the District no longer has ownership of any assets that may be considered capital

in nature, therefore resulting in a negative result for Net Assets.

Statement of Activities (1)

Year Ended April 30 2008 2009 2010 2011 2012

GOVERNMENTAL ACTIVITIES: Administrative ..................... $ (354,508) $ (795,548) $ (770,922) $ (825,961) $ (842,216) Interest on Long-term Debt ......... (232,542) (224,588) (218,210) (206,509) (195,571) Total Governmental Activities ... $ (587,050) $(1,020,136) $ (989,132) $(1,032,470) $(1,037,787) GENERAL REVENUES AND TRANSFERS: Taxes: Property Taxes Levied for General Purposes ................ $ 1,295,411 $ 1,347,350 $ 1,375,705 $ 1,396,189 $ 1,371,278 Replacement Taxes for General Purposes ......................... 17,969 19,756 17,487 19,438 17,535 Interest ........................... 25,681 12,805 1,895 1,021 760 Transfers .......................... 2,497 2,848 0 (265,875) 0 Total General Revenue and Transfers ...................... $ 1,341,558 $ 1,382,759 $ 1,395,087 $ 1,150,773 $ 1,389,573 Change in Net Assets ............... 754,508 362,623 405,955 118,303 351,786 Net Assets – Beginning Adjustment(s) (3,566,425) (2,811,918) (2,449,295) (2,043,341) (1,925,037)(2) Net Assets - End of Year ........... $(2,811,917) $(2,449,295) $(2,043,340) $(1,925,038) $(1,573,251) Notes: (1) Under the Intergovernmental Agreement the District no longer has ownership of any assets that may be considered capital

in nature, therefore resulting in a negative result for Net Assets. (2) As restated.


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Governmental Funds - General Fund Balance Sheet

Audited as of April 30 2008 2009 2010 2011 2012

ASSETS: Cash .................................... $1,045,623 $1,715,907 $ 884,497 $1,045,899 $1,237,928 Property Taxes Receivable ............... 423,475 448,023 415,562 441,064 399,682 Replacement Taxes Receivable ............ 3,832 4,571 0 3,685 6,408 Due from Other Funds .................... 265,875 265,875 265,875 0 0 Total Assets .......................... $1,738,805 $2,434,376 $1,565,934 $1,490,648 $1,644,018 LIABILITIES: Accounts Payable ........................ $ 31,185 $ 9,750 $ 1,096 $ 1,616 $ 14,372 Due to Other Funds ...................... 1,876,872 1,876,872 311,654 595,553 729,239 Deferred Property Taxes ................. 423,475 448,023 415,562 441,064 399,682 Total Liabilities ..................... $2,331,532 $2,334,645 $ 728,312 $1,038,233 $1,143,293 FUND BALANCES: Unreserved: Undesignated ........................... $ (592,727) $ 99,731 $ 837,622 $ 0 $ 0 Restricted .............................. 0 0 0 0 0 Committed ............................... 0 0 0 0 0 Unassigned .............................. 0 0 0 452,415 500,725 Total Fund Balances ................... $ (592,727) $ 99,731 $ 837,622 $ 452,415 $ 500,725 Total Liabilities and Fund Balance .... $1,738,805 $2,434,376 $1,565,934 $1,490,648 $1,644,018

Governmental Funds - General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance

Audited Fiscal Year Ending April 30 2008 2009 2010 2011 2012

REVENUES: Property Taxes .......................... $ 647,588 $ 704,904 $ 765,119 $ 684,147 $ 787,805 Replacement Taxes ....................... 17,969 19,756 17,487 19,438 17,535 Interest ................................ 18,654 9,918 1,895 1,021 760 Other ................................... 2,497 2,848 0 0 0 Total Revenues ....................... $ 686,708 $ 737,426 $ 784,501 $ 704,606 $ 806,100 EXPENDITURES: Current Operating: General ................................ $ 44,880 $ 44,966 $ 46,609 $ 52,074 $ 49,190 Special Recreation ..................... 0 0 0 0 0 Debt Service: Principal .............................. 0 0 0 0 0 Interest ............................... 0 0 0 0 0 Fees ................................... 0 0 0 0 0 City Consideration ...................... 0 0 0 425,069 708,600 Total Expenditures .................... $ 44,880 $ 44,966 $ 46,609 $ 477,143 $ 757,790 Excess (deficiency) of Revenues Over (Under) Expenditures .............. 641,828 692,460 737,892 227,463 48,310 Other Financing Sources ................. 0 0 0 (612,670) 0 Net Changes in Fund Balance ............. 641,828 692,460 737,892 (385,207) 48,310 Beginning Fund Balance Adjustment(s) .... (1,234,555) (592,729) 99,730 837,622 452,415 Ending Fund Balance ..................... $ (592,727) $ 99,731 $ 837,622 $ 452,415 $ 500,725 Note: (1) As restated. .


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General Fund

Budget Financial Information (Unaudited) Budget Fiscal Year Ending Fiscal Year Ending 4/30/2013 4/30/2014

REVENUES: Property Taxes ........................... $1,360,697 $819,047 Replacement Taxes ........................ 11,530 18,000 Interest ................................. 547 2,500 Other .................................... 0 0 Total Revenues ......................... $1,372,774 $839,547 EXPENDITURES: Current Operating: General ................................. $59,490 $ 77,350 Special Recreation ...................... 78,105 0 City Consideration ....................... 734,582 762,197 Debt Service ............................. 935,490 0 Total Expenditures...................... $1,807,667 $839,547 Excess (deficiency) of Revenues Over (Under) Expenditures ................ (434,893) 0 Other Financing Sources ................... 543,160 0 Net Changes in Fund Balance ............... 108,267 0

PENSION AND RETIREMENT OBLIGATIONS

The District does not currently have any employees and therefore does not have any pension or retirement obligations.

REGISTRATION, TRANSFER AND EXCHANGE

See also APPENDIX B for information on registration, transfer and exchange of book-entry bonds. The Bonds will be initially issued as book-entry bonds.

The District shall cause books (the “Bond Register”) for the registration and for the transfer of the Bonds to be kept at the principal corporate trust office of the Bond Registrar in Chicago, Illinois. The District will authorize to be prepared, and the Bond Registrar shall keep custody of, multiple bond blanks executed by the District for use in the transfer and exchange of Bonds.

Any Bond may be transferred or exchanged, but only in the manner, subject to the limitations, and upon

payment of the charges as set forth in the 2013A Bond Ordinance and Limited Bond Ordinance. Upon surrender for transfer or exchange of any Bond at the principal corporate trust office of the Bond Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Bond Registrar and duly executed by the registered owner or such owner’s attorney duly authorized in writing, the District shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the registered owner, transferee or transferees (as the case may be) a new fully registered Bond or Bonds of the same maturity and interest rate of authorized denominations, for a like aggregate principal amount.


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The execution by the District of any fully registered Bond shall constitute full and due authorization of such Bond, and the Bond Registrar shall thereby be authorized to authenticate, date and deliver such Bond, provided, however, the principal amount of outstanding Bonds of each maturity authenticated by the Bond Registrar shall not exceed the authorized principal amount of Bonds for such maturity less Bonds previously paid.

The Bond Registrar will not be required to transfer or exchange any Bond during the period beginning at the close of business on the 1st day of the month of any interest payment date on such Bond and ending at the opening of business on such interest payment date, nor to transfer or exchange any 2013A Bond after notice calling such 2013A Bond for redemption has been mailed, nor during a period of fifteen (15) days next preceding mailing of a notice of redemption of any 2013A Bonds. The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of the principal of or interest on any Bonds shall be made only to or upon the order of the registered owner thereof or such owner’s legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid.

No service charge shall be made for any transfer or exchange of Bonds, but the District or the Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds, except in the case of the issuance of a 2013A Bond or 2013A Bonds for the unredeemed portion of a 2013A Bond surrendered for redemption.

TAX EXEMPTION

Federal tax law contains a number of requirements and restrictions which apply to the Bonds, including investment restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the proper use of bond proceeds and the facilities financed therewith, and certain other matters. The District has covenanted to comply with all requirements that must be satisfied in order for the interest on the Bonds to be excludable from gross income for federal income tax purposes. Failure to comply with certain of such covenants could cause interest on the Bonds to become includible in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds.

Subject to the District’s compliance with the above-referenced covenants, under present law, in the opinion of Bond

Counsel, interest on the Bonds is excludable from the gross income of the owners thereof for federal income tax purposes, and is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations, but interest on the Bonds is taken into account, however, in computing an adjustment used in determining the federal alternative minimum tax for certain corporations.

In rendering its opinion, Bond Counsel will rely upon certifications of the District with respect to certain material

facts within the District’s knowledge. Bond Counsel’s opinion represents its legal judgment based upon its review of the law and the facts that it deems relevant to render such opinion and is not a guarantee of a result.

The Internal Revenue Code of 1986, as amended (the “Code”), includes provisions for an alternative minimum tax

(“AMT”) for corporations in addition to the corporate regular tax in certain cases. The AMT, if any, depends upon the corporation’s alternative minimum taxable income (“AMTI”), which is the corporation’s taxable income with certain adjustments. One of the adjustment items used in computing the AMTI of a corporation (with certain exceptions) is an amount equal to 75% of the excess of such corporation’s “adjusted current earnings” over an amount equal to its AMTI (before such adjustment item and the alternative tax net operating loss deduction). “Adjusted current earnings” would include certain tax-exempt interest, including interest on the Bonds.


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Ownership of the Bonds may result in collateral federal income tax consequences to certain taxpayers, including,

without limitation, corporations subject to the branch profits tax, financial institutions, certain insurance companies, certain S corporations, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or continued) indebtedness to purchase or carry tax-exempt obligations. Prospective purchasers of the Bonds should consult their tax advisors as to applicability of any such collateral consequences.

The issue price (the “Issue Price”) for each maturity of the Bonds is the price at which a substantial amount of such maturity of the Bonds is first sold to the public. The Issue Price of a maturity of the Bonds may be different from the price set forth, or the price corresponding to the yield set forth, on the inside cover page hereof.

If the Issue Price of a maturity of the 2013A Bonds is less than the principal amount payable at maturity, the

difference between the Issue Price of each such maturity, if any, of the 2013A Bonds (the “OID 2013A Bonds”) and the principal amount payable at maturity is original issue discount.

The 2013B Bonds do not pay interest until a date that is more than one year after the date of issue. The interest payments on the 2013B Bonds are not “qualified stated interest” for federal income tax purposes and will accordingly be included in the computation of original issue discount as described below. Regardless of whether the Issue Price of any maturity of the 2013B Bonds is below the par amount thereof, the difference between the Issue Price of each maturity of the 2013B Bonds and the sum of all interest payments thereon plus the amount payable at maturity is original issue discount. Because interest is not payable at intervals of one year or less, all of the 2013B Bonds are “OID 2013B Bonds, and together with the 2013A OID Bonds, the “OID Bonds”).

If a Bond is purchased at any time for a price that is less than the Bond’s stated redemption price at maturity or, in

the case of an OID Bond, its Issue Price plus accreted original issue discount (and, for the 2013B Bonds, reduced by payments of interest included in the computation of original issue discount and previously paid) (the “Revised Issue Price”), the purchaser will be treated as having purchased a Bond with market discount subject to the market discount rules of the Code (unless a statutory de minimis rule applies). Accrued market discount is treated as taxable ordinary income and is recognized when a Bond is disposed of (to the extent such accrued discount does not exceed gain realized) or, at the purchaser’s election, as it accrues. Such treatment would apply to any purchaser who purchases an OID Bond for a price that is less than its Revised Issue Price (and, for the 2013B Bonds, even if the purchase price exceeds par). The applicability of the market discount rules may adversely affect the liquidity or secondary market price of such Bond. Purchasers should consult their own tax advisors regarding the potential implications of market discount with respect to the Bonds.

Owners of Bonds who dispose of Bonds prior to the stated maturity (whether by sale, redemption or otherwise),

purchase Bonds in the initial public offering, but at a price different from the Issue Price or purchase Bonds subsequent to the initial public offering should consult their own tax advisors.

If a Bond is purchased at any time for a price that is less than the Bond’s stated redemption price at maturity or,

in the case of an OID Bond, its Issue Price plus accreted original issue discount (the “Revised Issue Price”), the purchaser will be treated as having purchased a Bond with market discount subject to the market discount rules of the Code (unless a statutory de minimis rule applies). Accrued market discount is treated as taxable ordinary income and is recognized when a Bond is disposed of (to the extent such accrued discount does not exceed gain realized) or, at the purchaser’s election, as it accrues. Such treatment would apply to any purchaser who purchases an OID Bond for a price that is less than its Revised Issue Price. The applicability of the market discount rules may adversely affect the liquidity or secondary market price of such Bond. Purchasers should consult their own tax advisors regarding the potential implications of market discount with respect to the Bonds.


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An investor may purchase a 2013A Bond at a price in excess of its stated principal amount. Such excess is

characterized for federal income tax purposes as “bond premium” and must be amortized by an investor on a constant yield basis over the remaining term of the 2013A Bond in a manner that takes into account potential call dates and call prices. An investor cannot deduct amortized bond premium relating to a tax-exempt bond. The amortized bond premium is treated as a reduction in the tax-exempt interest received. As bond premium is amortized, it reduces the investor’s basis in the 2013A Bond. Investors who purchase a 2013A Bond at a premium should consult their own tax advisors regarding the amortization of bond premium and its effect on the 2013A Bond’s basis for purposes of computing gain or loss in connection with the sale, exchange, redemption or early retirement of the 2013A Bond.

There are or may be pending in the Congress of the United States legislative proposals, including some that

carry retroactive effective dates, that, if enacted, could alter or amend the federal tax matters referred to above or affect the market value of the Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or whether, if enacted, it would apply to bonds issued prior to enactment. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal tax legislation. Bond Counsel expresses no opinion regarding any pending or proposed federal tax legislation.

The Internal Revenue Service (the “Service”) has an ongoing program of auditing tax-exempt obligations to

determine whether, in the view of the Service, interest on such tax-exempt obligations is includable in the gross income of the owners thereof for federal income tax purposes. It cannot be predicted whether or not the Service will commence an audit of the Bonds. If an audit is commenced, under current procedures the Service may treat the District as a taxpayer and the Bondholders may have no right to participate in such procedure. The commencement of an audit could adversely affect the market value and liquidity of the Bonds until the audit is concluded, regardless of the ultimate outcome.

Payments of interest on, and proceeds of the sale, redemption or maturity of, tax-exempt obligations, including

the Bonds, are in certain cases required to be reported to the Service. Additionally, backup withholding may apply to any such payments to any Bond owner who fails to provide an accurate Form W-9 Request for Taxpayer Identification Number and Certification, or a substantially identical form, or to any Bond owner who is notified by the Service of a failure to report any interest or dividends required to be shown on federal income tax returns. The reporting and backup withholding requirements do not affect the excludability of such interest from gross income for federal tax purposes.

Interest on Bonds is not exempt from present State of Illinois income taxes. Ownership of the Bonds may result

in other state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such collateral consequences arising with respect to the Bonds. Prospective purchasers of the Bonds should consult their tax advisors regarding the applicability of any such state and local taxes.

QUALIFIED TAX-EXEMPT OBLIGATIONS Subject to the District’s compliance with certain covenants, in the opinion of Bond Counsel, the Bonds are

“qualified tax-exempt obligations” under the small issuer exception provided under Section 265(b)(3) of the Code, which affords banks and certain other financial institutions more favorable treatment of their deduction for interest expense than would otherwise be allowed under Section 265(b)(2) of the Code.


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LIMITED CONTINUING DISCLOSURE Because at the time of the delivery of the Bonds the District will be an “obligated person” (as such term is

defined in Rule 15c2-12 (the “Rule”)) with respect to less than $10,000,000 in aggregate amount of outstanding municipal securities, including the Bonds, the District is required to provide to the Municipal Securities Rulemaking Board (the “MSRB”), as specified in the Rule, annual financial information or operating data regarding the District which annual financial information and operating data shall include, at a minimum, that annual financial information and operating data which is customarily prepared by the District and is publicly available. Consequently, pursuant to the Rule, the District will enter into a Continuing Disclosure Certificate and Agreement (the “Undertaking”) for the benefit of the registered owners and beneficial owners of the Bonds to send certain annual financial information and operating data to the MSRB for purposes of the Rule and to provide notice of certain reportable events to the MSRB pursuant to the requirements of Section (b)(5) of the Rule adopted by the Securities Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934 (the “1934 Act”). No person, other than the District, has undertaken, or is otherwise expected, to provide continuing disclosure with respect to the Bonds.

There have been no instances in the previous five years in which the District failed to comply, in all material respects, with any undertaking previously entered into by it pursuant to the Rule. A failure by the District to comply with the Undertaking will not constitute a default under the 2013A Bond Ordinance or the Limited Bond Ordinance and registered owners and beneficial owners of the Bonds are limited to the remedies described in the Undertaking. See “THE UNDERTAKING - Consequences of Failure of the District to Provide Information”. The District must report any failure to comply with the Undertaking in accordance with the Rule. Any broker, dealer or municipal securities dealer must consider such report before recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market price.

THE UNDERTAKING The following is a brief summary of certain provisions of the Undertaking of the District and does not purport

to be complete. The statements made under this caption are subject to the detailed provisions of the Undertaking, a copy of which is available upon request from the District.

Financial Information Disclosure

The District covenants that it will disseminate its Financial Information (as described below) annually to the

MSRB in such manner and format and accompanied by identifying information as is prescribed by the MSRB or the Commission at the time of delivery of such information. The District is required to deliver such information within 210 days after the last day of the District’s fiscal year (currently on April 30). If audited financial statements are not available when the Financial Information is filed, the District will file unaudited financial statements. The District will submit audited financial statements to the MSRB’s EMMA system within 30 days after availability to the District. MSRB Rule G-32 requires all EMMA filings to be in word-searchable PDF format. This requirement extends to all documents to be filed with EMMA, including financial statements and other externally prepared reports.

“Financial Information” means financial statements of the District as audited annually by independent certified

public accountants and annual financial information or operating data regarding the District which annual financial information and operating data shall include, at a minimum, that annual financial information and operating data as presented in the Final Official Statement and which is customarily prepared by the District and is publicly available. The District’s audited financial statements are prepared according to Generally Accepted Accounting Principles as applicable to governmental units (i.e., as subject to the pronouncements of the Governmental Accounting Standards Board and subject to any express requirements of State law).


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Reportable Events Disclosure

The District covenants that it will disseminate in a timely manner (not in excess of ten business days after the occurrence of the Reportable Event) Reportable Events Disclosure to the MSRB in such manner and format and accompanied by identifying information as is prescribed by the MSRB or the Commission at the time of delivery of such information. MSRB Rule G-32 requires all EMMA filings to be in word-searchable PDF format. This requirement extends to all documents to be filed with EMMA, including financial statements and other externally prepared reports. The “Reportable Events” are:

1. Principal and interest payment delinquencies 2. Non-payment related defaults, if material 3. Unscheduled draws on debt service reserves reflecting financial difficulties 4. Unscheduled draws on credit enhancements reflecting financial difficulties 5. Substitution of credit or liquidity providers, or their failure to perform 6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations

of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security

7. Modifications to the rights of security holders, if material 8. Bond calls, if material, and tender offers 9. Defeasances 10. Release, substitution or sale of property securing repayment of the securities, if material 11. Rating changes 12. Bankruptcy, insolvency, receivership or similar event of the District* 13. The consummation of a merger, consolidation, or acquisition involving the District or the sale of all or

substantially all of the assets of the District, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material

14. Appointment of a successor or additional trustee or the change of name of a trustee, if material.

Consequences of Failure of the District to Provide Information

In the event of a failure of the District to comply with any provision of the Undertaking, the beneficial owner of any Bond may seek mandamus or specific performance by court order, to cause the District to comply with its obligations under the Undertaking. A default under the Undertaking shall not be deemed a default under the 2013A Bond Ordinance or Limited Bond Ordinance, and the sole remedy under the Undertaking in the event of any failure of the District to comply with the Undertaking shall be an action to compel performance.

*This event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the District in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the District, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the District


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Amendment; Waiver

Notwithstanding any other provision of the Undertaking, the District by resolution or ordinance authorizing such amendment or waiver, may amend the Undertaking, and any provision of the Undertaking may be waived, if:

(a) (i) The amendment or the waiver is made in connection with a change in circumstances that arises from a change in legal requirements including, without limitation, pursuant to a “no-action” letter issued by the Commission, a change in law, or a change in the identity, nature, or status of the District, or type of business conducted; or (ii) The Undertaking, as amended, or the provision, as waived, would have complied with the requirements of the Rule at the time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and

(b) The amendment or waiver does not materially impair the interests of the owners of the Bonds, as determined by parties unaffiliated with the District (such as Bond Counsel).

In the event that the Commission or the MSRB or other regulatory authority approves or requires Financial Information or notices of a Reportable Event to be filed with a central post office, governmental agency or similar entity other than the MSRB or in lieu of the MSRB, the District shall, if required, make such dissemination to such central post office, governmental agency or similar entity without the necessity of amending the Undertaking. Termination of Undertaking

The Undertaking shall be terminated if the District shall no longer have any legal liability for any obligation on or relating to repayment of the Bonds under the 2013A Bond Ordinance or Limited Bond Ordinance. The District shall give notice to the MSRB in a timely manner if this paragraph is applicable. Additional Information

Nothing in the Undertaking shall be deemed to prevent the District from disseminating any other information, using the means of dissemination set forth in the Undertaking or any other means of communication, or including any other information in any Financial Information or notice of occurrence of a Reportable Event, in addition to that which is required by the Undertaking. If the District chooses to include any information from any document or notice of occurrence of a Reportable Event in addition to that which is specifically required by the Undertaking, the District shall have no obligation under the Undertaking to update such information or include it in any future disclosure or notice of occurrence of a Reportable Event. Dissemination of Information; Dissemination Agent

When filings are required to be made with the MSRB in accordance with the Undertaking, such filings are

required to be made through its EMMA system for municipal securities disclosure or through any other electronic format or system prescribed by the MSRB for purposes of the Rule.

The District may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its

obligations under the Undertaking, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent.


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OPTIONAL REDEMPTION The 2013A Bonds

The 2013A Bonds maturing on or after December 1, 2023, are subject to redemption prior to maturity at the option of the District as a whole, or in part in integral multiples of $5,000 in any order of their maturity as determined by the District (less than all of the 2013A Bonds of a single maturity to be selected by the Bond Registrar), on December 1, 2022, and on any date thereafter, at the redemption price of par plus accrued interest to the redemption date.

The Bond Registrar will give notice of redemption, identifying the 2013A Bonds (or portions thereof) to be

redeemed, by mailing a copy of the redemption notice by first class mail not less than thirty (30) days nor more than sixty (60) days prior to the date fixed for redemption to the registered owner of each 2013A Bond (or portion thereof) to be redeemed at the address shown on the registration books maintained by the Bond Registrar. Unless moneys sufficient to pay the redemption price of the 2013A Bonds to be redeemed are received by the Bond Registrar prior to the giving of such notice of redemption, such notice may, at the option of the District, state that said redemption will be conditional upon the receipt of such moneys by the Bond Registrar on or prior to the date fixed for redemption. If such moneys are not received, such notice will be of no force and effect, the District will not redeem such 2013A Bonds, and the Bond Registrar will give notice, in the same manner in which the notice of redemption has been given, that such moneys were not so received and that such 2013A Bonds will not be redeemed. Otherwise, prior to any redemption date, the District will deposit with the Bond Registrar an amount of money sufficient to pay the redemption price of all the 2013A Bonds or portions of 2013A Bonds which are to be redeemed on the date.

Subject to the provisions for a conditional redemption described above, notice of redemption having been given as described above and in the 2013A Bond Ordinance, the 2013A Bonds or portions of 2013A Bonds so to be redeemed will, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the District shall default in the payment of the redemption price) such 2013A Bonds or portions of 2013A Bonds shall cease to bear interest. Upon surrender of such 2013A Bonds for redemption in accordance with said notice, such 2013A Bonds will be paid by the Bond Registrar at the redemption price.

The 2013B Bonds

The 2013B Bonds are not subject to optional redemption prior to maturity.

MANDATORY REDEMPTION

The 2013A Bonds coming due on December 1, 2028 are term bonds (“Term Bonds”) and are subject to mandatory redemption prior to maturity on December 1 of the years and in the amounts as follows:

Year Amount ($) 2027 .................. 360,000 2028 ................... 380,000 (stated maturity)

If the District redeems or purchases Term Bonds of any maturity and cancels the same from Bond moneys as hereinafter described, then an amount equal to the principal amount of Term Bonds so redeemed or purchased shall be deducted from the mandatory redemption requirement as provided for Term Bonds of such maturity, first, in the current year of such requirement, until the requirement for the current year has been fully met, and then in any order of payment on the Term Bonds as due at maturity or subject to mandatory redemption in any year as the District shall at such time determine.

The District covenants that it will redeem Term Bonds pursuant to the mandatory redemption requirement for such Term Bonds. Proper provision for mandatory redemption having been made, the District covenants that the Term Bonds so selected for redemption shall be payable as at maturity.


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LITIGATION

There is no litigation of any nature now pending or threatened restraining or enjoining the issuance, sale, execution or delivery of the Bonds, or in any way contesting or affecting the validity of the Bonds or any proceedings of the District taken with respect to the issuance or sale thereof.

FINAL OFFICIAL STATEMENT AUTHORIZATION

This Final Official Statement has been authorized for distribution to prospective purchasers of the Bonds. All statements, information, and statistics herein are believed to be correct but are not guaranteed by the consultants or by the District, and all expressions of opinion, whether or not so stated, are intended only as such.

INVESTMENT RATING

Standard & Poor’s, a Division of the McGraw-Hill Companies, has assigned a rating of “AA” (Stable Outlook)

to the 2013A Bonds, with the understanding that, upon delivery of the 2013A Bonds, a bond insurance policy will be issued by BAM. Such rating reflects only the views of such organization and any desired explanation of the significance of such rating should be obtained from the rating agency furnishing the same, at the following address: Standard & Poor’s Corporation, 55 Water Street, New York, New York 10041.

The Bonds have been rated “A” (Stable Outlook) from Standard & Poor’s, a Division of the McGraw Hill

Companies. The District has supplied certain information and material concerning the Bonds and the District to the rating service shown on the cover page, including certain information and materials which may not have been included in this Final Official Statement, as part of its application for an investment rating on the Bonds. A rating reflects only the views of the rating agency assigning such rating and an explanation of the significance of such rating may be obtained from such rating agency. Generally, such rating service bases its rating on such information and material, and also on such investigations, studies and assumptions that it may undertake independently. There is no assurance that such rating will continue for any given period of time or that it may not be lowered or withdrawn entirely by such rating service if, in its judgment, circumstances so warrant. Any such downward change in or withdrawal of such rating may have an adverse effect on the secondary market price of the Bonds. An explanation of the significance of the investment rating may be obtained from the rating agency: Standard & Poor’s Corporation, 55 Water Street, New York, New York 10041, telephone 212-438-2000.

DEFEASANCE

The 2013A Bonds are subject to legal defeasance by the irrevocable deposit of full faith and credit obligations of the United States of America, obligations the timely payment of which are guaranteed by the United States Treasury, or certificates of participation in a trust comprised solely of full faith and credit obligations of the United States of America (collectively, the “Government Obligations”) with a bank or trust company acting as escrow agent. Any such deposit must be of sufficient amount that the receipts from the Government Obligations plus any cash on deposit will be sufficient to pay debt service on the 2013A Bonds when due or as called for redemption.


38

CERTAIN LEGAL MATTERS

Certain legal matters incident to the authorization, issuance and sale of the Bonds are subject to the approving legal opinion of Chapman and Cutler LLP, Chicago, Illinois, as Bond Counsel (the “Bond Counsel”) who has been retained by, and acts as, Bond Counsel to the District. Bond Counsel has not been retained or consulted on disclosure matters and has not undertaken to review or verify the accuracy, completeness or sufficiency of this Final Official Statement or other offering material relating to the Bonds and assumes no responsibility for the statements or information contained in or incorporated by reference in this Final Official Statement, except that in its capacity as Bond Counsel, Chapman and Cutler LLP has, at the request of the District, reviewed only those portions of this Final Official Statement involving the description of the Bonds, the security for the Bonds (excluding forecasts, projections, estimates or any other financial or economic information in connection therewith), the description of the federal tax exemption of interest on the Bonds and the “bank qualified” status of the Bonds. This review was undertaken solely at the request and for the benefit of the District and did not include any obligation to establish or confirm factual matters set forth herein.

UNDERWRITING

Ruan Securities, a Division of D.A. Davidson & Co., Des Moines, Iowa (the “Underwriter”) has agreed to purchase all but not less than all of the 2013A Bonds at a price of $4,495,462.75 (reflecting the par amount of $4,390,000, plus a reoffering premium of $147,167.75, less an Underwriter’s Discount of $41,705.00). It is anticipated that delivery of the 2013A Bonds will occur on the date shown on the cover page hereof. The 2013A Bonds may be offered and sold to certain dealers (including the Underwriter or other dealers depositing 2013A Bonds into investment trusts) at prices or yields other than such public offering prices or yields shown in this Final Official Statement, and such public offering prices or yields may be changed, from time to time, by the Underwriter.

The Underwriter has agreed to purchase all but not less than all of the 2013B Bonds at a price of $467,803.24 (reflecting the par amount of $467,000, plus a reoffering premium of $5,239.74, less an Underwriter’s Discount of $4,436.50). It is anticipated that delivery of the 2013B Bonds will occur on the date shown on the cover page hereof. The 2013B Bonds may be offered and sold to certain dealers (including the Underwriter or other dealers depositing 2013B Bonds into investment trusts) at prices or yields other than such public offering prices or yields shown in this Final Official Statement, and such public offering prices or yields may be changed, from time to time, by the Underwriter.

FINANCIAL ADVISOR

The District has engaged Speer Financial, Inc. as financial advisor (the “Financial Advisor”) in connection with the issuance and sale of the Bonds. The Financial Advisor is a Registered Municipal Advisor in accordance with the rules of the Municipal Securities Rulemaking Board (the “MSRB”). The Financial Advisor will not participate in the underwriting of the Bonds. The financial information included in the Final Official Statement has been compiled by the Financial Advisor. Such information does not purport to be a review, audit or certified forecast of future events and may not conform with accounting principles applicable to compilations of financial information. The Financial Advisor is not a firm of certified public accountants and does not serve in that capacity or provide accounting services in connection with the Bonds. The Financial Advisor is not obligated to undertake any independent verification of or to assume any responsibility for the accuracy, completeness or fairness of the information contained in this Final Official Statement, nor is the Financial Advisor obligated by the District’s continuing disclosure undertaking.


39

CERTIFICATION I have examined this Final Official Statement dated October 24, 2013, for the $4,390,000 General Obligation Park Bonds (Alternate Revenue Source), Series 2013A and $467,000 Limited Tax General Obligation Park Bonds, Series 2013B, believe it to be true and correct and will provide to the purchaser of the Bonds at the time of delivery a certificate confirming to the purchaser that to the best of my knowledge and belief information in the Official Statement was at the time of acceptance of the bid for the Bonds and, including any addenda thereto, was at the time of delivery of the Bonds true and correct in all material respects and does not include any untrue statement of a material fact, nor does it omit the statement of any material fact required to be stated therein, or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. /s/ APREAL WILLIAMSON President, Board of Park Commissioners COUNTRY CLUB HILLS PARK DISTRICT Cook County, Illinois

APPENDIX A

COUNTRY CLUB HILLS PARK DISTRICT Cook County, Illinois

EXCERPTS OF FISCAL YEAR 2012 AUDITED FINANCIAL STATEMENTS

Co

un

try C

lub

Hills

Park

Dis

tric

t

Sta

tem

en

t o

f N

et

Assets

Ap

ril

30,

2012

To

tal

Go

vern

men

tal

Acti

vit

ies

AS

SE

TS

Cu

rren

t A

ssets

Cash

1,8

82,5

47

$P

ropert

y T

axe

s R

ece

ivable

737,0

56

Repla

cem

ent

Taxe

s R

ece

ivable

6,4

08

To

tal

Cu

rren

t A

ssets

2,6

26,0

11

TO

TA

L A

SS

ET

S2,6

26,0

11

LIA

BIL

ITIE

S

Cu

rren

t L

iab

ilit

ies

Acc

ounts

P

aya

ble

14,3

72

Bonds

Paya

ble

734,8

90

To

tal

Cu

rren

t L

iab

ilit

ies

749,2

62

No

n C

urr

en

t L

iab

ilit

ies

Bonds

Paya

ble

3,4

50,0

00

To

tal

No

n C

urr

en

t L

iab

ilit

ies

3,4

50,0

00

TO

TA

L

LIA

BIL

ITIE

S4,1

99,2

62

NE

T A

SS

ET

S

Unre

strict

ed N

et

Ass

ets

(1,5

73,2

51)

TO

TA

L N

ET

AS

SE

TS

(1,5

73,2

51)

$

__

____

____

____

____

____

____

____

____

T

HIS

PA

GE

IN

TE

NT

ION

AL

LY

LE

FT

BL

AN

K

__

____

____

____

____

____

____

____

___

A-1

Net

(Ex

pens

es)

Rev

enue

s an

d C

hang

eC

harg

esO

pera

ting

in N

et A

sset

s -

for

Gra

nts

and

Gov

ernm

enta

lEx

pens

esSe

rvic

esC

ontri

butio

nsA

ctiv

ities

FUN

CTI

ON

S/PR

OG

RA

MS

Gov

ernm

enta

l A

ctiv

ities

Adm

inis

trativ

e84

2,21

6$

0$

0$

(842

,216

)$

In

tere

st o

n Lo

ng-T

erm

Deb

t19

5,57

10

0(1

95,5

71)

Tota

l G

over

nmen

tal

Act

iviti

es1,

037,

787

00

(1,0

37,7

87)

GEN

ERA

L R

EVEN

UES

AN

D T

RA

NSF

ERS

Taxe

sPr

oper

ty ta

xes

levi

ed fo

r ge

nera

l pur

pose

s1,

371,

278

$

Rep

lace

men

t ta

xes

for

gene

ral p

urpo

ses

17,5

35In

tere

st76

0TO

TAL

GEN

ERA

L R

EVEN

UES

AN

D T

RA

NSF

ERS

1,38

9,57

3

CH

AN

GE

IN N

ET A

SSET

S35

1,78

6

NET

ASS

ETS,

BEG

INN

ING

OF

YEA

R(1

,925

,037

)

END

OF

YEA

R(1

,573

,251

)$

Stat

emen

t of

Act

iviti

esC

ount

ry C

lub

Hill

s Pa

rk D

istri

ct

PRO

GR

AM

REV

ENU

ES

For

The

Year

End

ed A

pril

30, 2

012 Se

e Ac

com

pany

ing

Not

es T

o Th

e Fi

nanc

ial S

tate

men

ts.

- 4 -

A-2

Go

vern

men

tal

Fu

nd

s

Oth

er

Deb

tC

ap

ital

Go

vern

men

tal

Gen

era

lS

erv

ice

Pro

jects

Fu

nd

sT

ota

l

AS

SE

TS

Cash

1,2

37,9

28

$448,3

45

$0

$196,2

74

$1,8

82,5

47

$P

ropert

y T

axe

s R

ece

ivable

399,6

82

288,5

28

048,8

46

737,0

56

Repla

cem

ent

Taxe

s R

ece

ivable

6,4

08

00

06,4

08

Due f

rom

Oth

er

Funds

0402,4

08

326,8

31

0729,2

39

TO

TA

L A

SS

ET

S1,6

44,0

18

1,1

39,2

81

326,8

31

245,1

20

3,3

55,2

50

LIA

BIL

ITIE

S

Acc

ounts

P

aya

ble

14,3

72

00

014,3

72

Due t

o O

ther

Funds

729,2

39

00

0729,2

39

Defe

rred P

ropert

y T

axe

s399,6

82

288,5

28

048,8

46

737,0

56

TO

TA

L

LIA

BIL

ITIE

S1,1

43,2

93

288,5

28

048,8

46

1,4

80,6

67

FU

ND

B

AL

AN

CE

S

Rest

rict

ed

0850,7

53

0196,2

74

1,0

47,0

27

Com

mitt

ed

00

326,8

31

0326,8

31

Unass

igned

500,7

25

00

0500,7

25

TO

TA

L F

UN

D B

AL

AN

CE

S500,7

25

850,7

53

326,8

31

196,2

74

1,8

74,5

83

TO

TA

L L

IAB

ILIT

IES

AN

D F

UN

D

BA

LA

NC

ES

1,6

44,0

18

$1,1

39,2

81

$326,8

31

$245,1

20

$

Am

ounts

report

ed f

or

gove

rnm

enta

l act

ivite

s in

the s

tate

ment

of

net

ass

ets

are

diff

ere

nt

beca

use

:D

efe

rred P

ropert

y T

ax

Reve

nue i

s not

reco

rded o

n t

he S

tate

ment

of

Net

Ass

ets

.737,0

56

Bonds

Paya

ble

are

not

report

ed a

s a l

iabili

ty i

n t

he f

und f

inanci

al

state

ments

.(4

,184,8

90)

NE

T A

SS

ET

S O

F G

OV

ER

NM

EN

TA

L F

UN

DS

(1,5

73,2

51)

$

Co

un

try C

lub

Hills

Park

Dis

tric

t

Bala

nce S

heet

Ap

ril

30,

2012

Oth

er

Deb

tC

ap

ital

Go

vern

men

tal

Gen

era

lS

erv

ice

Pro

jects

Fu

nd

sT

ota

l

RE

VE

NU

ES

Pro

pert

y T

axe

s787,8

05

$601,1

13

$0

$110,7

26

$1,4

99,6

44

$R

epla

cem

ent

Taxe

s17,5

35

00

017,5

35

Inte

rest

760

00

0760

TO

TA

L R

EV

EN

UE

S806,1

00

601,1

13

0110,7

26

1,5

17,9

39

EX

PE

ND

ITU

RE

S

Curr

ent

Opera

ting:

Genera

l49,1

90

00

049,1

90

Speci

al

Recr

eatio

n0

00

77,7

11

77,7

11

Debt

Serv

ice

Princi

pal

0723,2

35

00

723,2

35

Inte

rest

0195,5

71

00

195,5

71

Fees

06,7

15

00

6,7

15

City

C

onsi

dera

tion

708,6

00

00

0708,6

00

TO

TA

L

EX

PE

ND

ITU

RE

S757,7

90

925,5

21

077,7

11

1,7

61,0

22

EX

CE

SS

(D

EF

ICIE

NC

Y)

OF

RE

VE

NU

ES

OV

ER

E

XP

EN

DIT

UR

ES

48,3

10

(324,4

08)

033,0

15

(243,0

83)

OT

HE

R F

INA

NC

ING

SO

UR

CE

S

(US

ES

)

Issu

ance

of

Debt

0391,2

04

133,6

86

0524,8

90

TO

TA

L O

TH

ER

FIN

AN

CIN

G

SO

UR

CE

S (U

SE

S)

0391,2

04

133,6

86

0524,8

90

NE

T C

HA

NG

E I

N

FU

ND

B

AL

AN

CE

S48,3

10

66,7

96

133,6

86

33,0

15

281,8

07

FU

ND

B

AL

AN

CE

S (D

EF

ICIT

S),

BE

GIN

NIN

G O

F Y

EA

R452,4

15

783,9

57

193,1

45

163,2

59

1,5

92,7

76

EN

D O

F Y

EA

R500,7

25

$850,7

53

$326,8

31

$196,2

74

$1,8

74,5

83

$

Fo

r T

he Y

ear

En

ded

Ap

ril

30,

2012

Sta

tem

en

t o

f R

even

ues,

Exp

en

dit

ure

s a

nd

Ch

an

ges i

n F

un

d B

ala

nces (

Defi

cit

s)

Go

verm

en

tal

Fu

nd

s

Co

un

try C

lub

Hills

Park

Dis

tric

t

A-3

Co

un

try C

lub

Hills

Park

Dis

tric

t

Reco

ncilia

tio

n o

f th

e S

tate

men

t o

f R

even

ues,

Exp

en

dit

ure

s a

nd

Ch

an

ges i

n F

un

d

Bala

nces (

Defi

cit

s)

of

Go

vern

men

tal

Fu

nd

s t

o t

he S

tate

men

t o

f A

cti

vit

ies

Fo

r T

he Y

ear

En

ded

Ap

ril

30,

2012

Net

Change i

n F

und B

ala

nce

s -

Tota

l G

ove

rnm

enta

l F

unds

[Sta

tem

ent

of

Reve

nues,

Exp

enditu

res

and C

hanges

in F

und B

ala

nce

s(D

efic

its)]

281,8

07

$

Am

ounts

report

ed f

or

gove

rnm

enta

l act

iviti

es

in t

he S

tate

ment

of

Act

iviti

es

are

diff

ere

nt

beca

use

:

Pro

pert

y ta

x re

venues

in t

he S

tate

ment

of

Act

iviti

es

that

do n

ot

pro

vide c

urr

ent

financi

al

reso

urc

es

are

report

ed a

s defe

rred p

ropert

y ta

x re

venue i

n t

he f

und f

inanci

al

state

ments

.(1

28,3

66)

Paym

ents

of

bond p

rinci

pal

are

tre

ate

d a

s an e

xpenditu

re i

n t

he f

und f

inanci

al

state

ments

.723,2

35

Pro

ceeds

from

the I

ssuance

of

Debt

are

consi

dere

d O

ther

Fin

anci

ng

Sourc

es

in t

he f

und f

inanci

al

state

ments

.(5

24,8

90)

Change i

n N

et

Ass

ets

of

Gove

rnm

enta

l A

ctiv

ities

(Sta

tem

ent

of

Act

iviti

es)

351,7

86

$

Co

un

try C

lub

Hills

Park

Dis

tric

tN

ote

s T

o T

he F

inan

cia

l S

tate

men

tsF

or

Th

e Y

ear

En

ded

Ap

ril

30,

2012

NO

TE

1 -

SU

MM

AR

Y O

F S

IGN

IFIC

AN

T A

CC

OU

NT

ING

PO

LIC

IES

Th

e C

ou

ntr

y C

lub

Hill

s P

ark

Dis

tric

t (P

ark

Dis

tric

t) o

pe

rate

s u

nd

er

a B

oa

rd-M

an

ag

er

form

of

gove

rnm

ent,

actin

g a

s a

pa

ss-t

hro

ug

h e

ntity

so

th

at

the

City o

f C

ou

ntr

y C

lub

Hill

s m

ay p

rovid

e

recr

eatio

n a

nd o

ther

serv

ices

to t

he r

esi

dents

of

Countr

y C

lub H

ills.

Th

e a

cco

un

tin

g a

nd

re

po

rtin

g p

olic

ies o

f th

e P

ark

Dis

tric

t re

latin

g t

o t

he

fu

nd

s i

nclu

de

d i

n t

he

a

cco

mp

an

yin

g b

asic

fin

an

cia

l sta

tem

en

ts c

on

form

to

ge

ne

rally

acce

pte

d a

cco

un

tin

g p

rin

cip

les

(GA

AP

) a

pp

lica

ble

to

sta

te a

nd

lo

ca

l g

ove

rnm

en

ts.

Th

e G

ove

rnm

en

tal

Acco

un

tin

g S

tan

da

rds

Board

(G

AS

B)

is t

he a

ccepte

d s

tandard

-settin

g b

ody

for

est

ablis

hin

g g

ove

rnm

enta

l acc

ountin

g a

nd

financi

al

report

ing princi

ple

s.T

he f

ollo

win

g i

s a s

um

mary

of

the m

ore

sig

nifi

cant

polic

ies.

A.

Report

ing E

ntit

y

Th

e P

ark

Dis

tric

t fo

llo

ws t

he

pro

vis

ion

s o

f G

ove

rnm

en

tal

Acco

un

tin

g S

tan

da

rds B

oa

rd

Sta

tem

en

t N

o.

39

, “D

ete

rmin

ing

Wh

eth

er

Ce

rta

in O

rga

niz

atio

ns A

re C

om

po

ne

nt

Un

its –

an

am

en

dm

en

t o

f G

AS

B S

tate

me

nt

No

. 1

4”.

As d

efi

ne

d b

y g

en

era

lly a

cce

pte

d a

cco

un

tin

g

pri

ncip

les e

sta

blish

ed

by G

AS

B,

the

fin

an

cia

l re

po

rtin

g e

nti

ty c

on

sis

ts o

f th

e p

rim

ary

gove

rnm

ent, a

s w

ell

as

its c

om

ponent

units

, w

hic

h a

re l

egally

separa

te,

tax-

exe

mpt

entit

ies

and

meet

all

of

the f

ollo

win

g c

rite

ria:

1.

Th

e e

co

no

mic

re

so

urc

es r

ece

ive

d o

r h

eld

by t

he

se

pa

rate

org

an

iza

tio

n a

re e

ntire

ly o

r alm

ost

entir

ely

for

the d

irect

benefit

of

the p

rim

ary

gove

rnm

ent, i

ts c

om

ponent

units

, or

its

const

ituents

.

2.

Th

e p

rim

ary

go

ve

rnm

en

t, o

r its c

om

po

ne

nt

un

its,

is e

ntitle

d t

o,

or

has t

he

ab

ility

to

oth

erw

ise a

ccess

, a m

ajo

rity

of

the e

conom

ic r

eso

urc

es

rece

ived o

r held

by

the s

epara

te

org

aniz

atio

n.

3.

The e

conom

ic r

eso

urc

es

rece

ived o

r held

by

an i

ndiv

idual

org

aniz

atio

n t

hat

the s

peci

fic

prim

ary

gove

rnm

ent, o

r its

com

ponent

units

, is

entit

led t

o,

or

has

the a

bili

ty t

o o

therw

ise

acc

ess

, are

sig

nifi

cant

to t

hat

prim

ary

gove

rnm

ent.

The P

ark

Dis

tric

t has c

onclu

ded t

hat

no e

ntit

ies m

eet

the c

rite

ria o

f S

tate

ment

39 f

or

incl

usi

on

as

a c

om

ponent

unit.

Lik

ew

ise,

the P

ark

Dis

tric

t is

not

required t

o b

e i

ncl

uded a

s a c

om

ponent

unit

of

any

oth

er

entit

y.

B.

Changes

in A

ccountin

g M

eth

ods

In J

une 1

999,

the G

ove

rnm

enta

l A

ccountin

g S

tandard

s B

oard

(G

AS

B)

issu

ed S

tate

ment

No.

34,

Ba

sic

Fin

an

cia

l S

tate

me

nts

an

d M

an

ag

em

en

t’s D

iscu

ssio

n a

nd

An

aly

sis

fo

r S

tate

an

d L

oca

l G

ove

rnm

en

ts (

GA

SB

34

).T

he

Co

un

try C

lub

Hill

s P

ark

Dis

tric

t h

as i

mp

lem

en

ted

GA

SB

34

effect

ive M

ay

1,

2004

.A

s a r

esu

lt, a

n e

ntir

ely

new

fin

anci

al

pre

senta

tion f

orm

at

is p

rovi

ded.

Th

e i

mp

lem

en

tatio

n o

f G

AS

B 3

4 a

dd

s t

wo

“G

ove

rnm

en

t-W

ide

” fina

ncia

l sta

tem

en

ts a

s b

asic

fin

anci

al

state

ments

required f

or

all

gove

rnm

enta

l units

.T

hey

are

the S

tate

ment

of

Net

Ass

ets

, w

hic

h p

rese

nts

the f

inanci

al

conditi

on o

f th

e g

ove

rnm

enta

l act

iviti

es

of

the P

ark

Dis

tric

t at

fisca

l ye

ar

en

d,

an

d t

he

Sta

tem

en

t o

f A

ctivitie

s,

wh

ich

pre

se

nts

a c

om

pa

riso

n b

etw

ee

n d

ire

ct

exp

en

se

s a

nd

pro

gra

m r

eve

nu

es

fo

r e

ac

h p

rog

ram

or

fun

cti

on

of

the

Pa

rk D

istr

ict’

s

gove

rnm

enta

l act

iviti

es.

A-4

Co

un

try C

lub

Hills

Park

Dis

tric

tN

ote

s T

o T

he F

inan

cia

l S

tate

men

ts

(Co

nti

nu

ed

)F

or

Th

e Y

ear

En

ded

Ap

ril

30,

2012

NO

TE

1 –

SU

MM

AR

Y O

F S

IGN

IFIC

AN

T A

CC

OU

NT

ING

PO

LIC

IES

(C

ON

TIN

UE

D)

B.

Changes

in A

ccountin

g M

eth

ods

(Contin

ued)

The r

eport

ing m

odel

for

GA

SB

34 c

lass

ifies

funds

as

gove

rnm

enta

l act

iviti

es.

Furt

her,

all

non-

fiduci

ary

funds

are

cla

ssifi

ed a

s m

ajo

r or

non-m

ajo

r fu

nds.

In r

eport

ing f

inanci

al

conditi

on a

nd

resu

lts o

f o

pe

ratio

ns f

or

go

ve

rnm

en

tal

un

its,

the

ne

w s

tan

da

rd c

on

ce

ntr

ate

s o

n m

ajo

r fu

nd

s

vers

us

non-m

ajo

r fu

nds.

Bo

th n

ew

sta

tem

en

ts a

re p

rep

are

d o

n t

he

fu

ll a

ccru

al

ba

sis

.P

revi

ou

sly

, in

accord

an

ce

with

acc

ountin

g s

tandard

s fo

r gove

rnm

enta

l units

, th

e P

ark

Dis

tric

t use

d t

he m

odifi

ed a

ccru

al

ba

sis

of

accountin

g f

or

cert

ain

funds.

The m

odifi

ed a

ccru

al

basis

of

accounting c

ontinues t

o b

e t

he

appro

priate

basi

s of

acc

ountin

g f

or

gove

rnm

enta

l act

ivity

fund f

inanci

al

state

ments

.

C.

Basi

s of

Pre

senta

tion

GO

VE

RN

ME

NT

-WID

E F

INA

NC

IAL S

TA

TE

ME

NT

S

Th

e S

tate

me

nt

of

Ne

t A

sse

ts a

nd

th

e S

tate

me

nt

of

Activitie

s d

isp

lay i

nfo

rma

tio

n a

bo

ut

the

re

port

ing g

ove

rnm

ent

as

a w

hole

.T

hey

incl

ude a

ll fu

nds

of

the r

eport

ing e

ntit

y.G

ove

rnm

enta

la

ctivitie

s g

en

era

lly a

re f

ina

nce

d t

hro

ug

h t

axe

s,

inte

rgo

ve

rnm

en

tal

reve

nu

es,

an

d o

the

r n

on-

exc

hange

reve

nues.

Th

e S

tate

me

nt

of

Activi

tie

s d

em

on

str

ate

s t

he

de

gre

e t

o w

hic

h t

he

dir

ect

exp

en

se

s o

f a

giv

en

fu

nct

ion o

r se

gm

ent

are

offse

t by

pro

gra

m r

eve

nues.

Direct

exp

ense

s are

those

that

are

cle

arly

identif

iable

with

a s

peci

fic f

unct

ion.

The P

ark

Dis

tric

t allo

cate

s in

direct

exp

ense

s to

funct

ions

in

the S

tate

ment

of

Act

iviti

es.

Taxe

s and o

ther

inco

me i

tem

s th

at

are

not

speci

fically

rela

ted t

o a

fu

nct

ion a

re r

eport

ed a

s genera

l re

venues.

FU

ND

FIN

AN

CIA

L S

TA

TE

ME

NT

S

Fu

nd

fin

ancia

l sta

tem

en

ts o

f th

e r

ep

ort

ing

en

tity

are

org

an

ize

d i

nto

in

div

idu

al

fun

ds,

ea

ch

of

whic

h i

s co

nsi

dere

d t

o b

e a

separa

te a

ccountin

g e

ntit

y.E

ach

fund i

s acc

ounte

d f

or

by

pro

vidin

g

a s

ep

ara

te s

et

of

se

lf-b

ala

ncin

g a

cco

un

ts,

wh

ich

co

nstitu

te i

ts a

ssets

, lia

bili

ties,

fund e

quity,

reve

nues,

and

exp

enditu

res/

exp

ense

s.F

un

d a

cco

un

tin

g s

eg

reg

ate

s f

un

ds a

cco

rdin

g t

o t

he

ir

inte

nd

ed

pu

rpo

se

an

d i

s u

se

d t

o a

id m

an

ag

em

en

t in

de

mo

nstr

atin

g c

om

plia

nce

with

fin

an

ce

-re

late

d l

egal

and c

ontr

act

ual

pro

visi

ons.

Funds

are

org

aniz

ed a

s m

ajo

r fu

nds

or

non-m

ajo

r fu

nds

with

in t

he g

ove

rnm

enta

l and p

roprieta

ry

state

ments

.A

fund i

s co

nsi

dere

d m

ajo

r if

it is

the p

rim

ary

opera

ting f

und o

f th

e e

ntit

y or

meets

th

e f

ollo

win

g c

rite

ria:

To

tal

as

se

ts,

lia

bil

itie

s,

rev

en

ue

s o

r e

xp

en

dit

ure

s/e

xp

en

se

s o

f th

e in

div

idu

al

gove

rnm

enta

l fu

nd o

r ente

rprise

fund a

re a

t le

ast

ten p

erc

ent

of

the c

orr

esp

ondin

g t

ota

l fo

r all

funds

of

that

cate

gory

or

type a

nd

To

tal

as

se

ts,

lia

bil

itie

s,

rev

en

ue

s o

r e

xp

en

dit

ure

s/e

xp

en

se

s o

f th

e in

div

idu

al

gove

rnm

enta

l or

en

terp

rise

fu

nd

are

at

lea

st

five

pe

rce

nt

of

the

co

rre

sp

on

din

g t

ota

l fo

r a

ll gove

rnm

enta

l and e

nte

rprise

funds

com

bin

ed.

Co

un

try C

lub

Hills

Park

Dis

tric

tN

ote

s T

o T

he F

inan

cia

l S

tate

men

ts

(Co

nti

nu

ed

)F

or

Th

e Y

ear

En

ded

Ap

ril

30,

2012

NO

TE

1 -

SU

MM

AR

Y O

F S

IGN

IFIC

AN

T A

CC

OU

NT

ING

PO

LIC

IES

(C

ON

TIN

UE

D)

C.

Basi

s of

Pre

senta

tion (

Contin

ued)

FU

ND

FIN

AN

CIA

L S

TA

TE

ME

NT

S (

CO

NT

INU

ED

)

Gove

rnm

enta

l F

unds

(Gove

rnm

enta

l A

ctiv

ities)

Go

ve

rnm

en

tal

fun

d t

yp

es a

re t

ho

se

th

rou

gh

wh

ich

mo

st

go

ve

rnm

en

tal

fun

ctio

ns o

f th

e P

ark

D

istr

ict

are

fin

an

ce

d.

Th

e P

ark

Dis

tric

t’s e

xp

en

da

ble

fin

an

cia

l re

so

urc

es (

exce

pt

tho

se

a

cco

un

ted

fo

r in

th

ep

rop

rie

tary

fu

nd

s)

are

acco

un

ted

fo

r th

rou

gh

go

vern

me

nta

l fu

nd

s.

The

me

asu

rem

en

t fo

cu

s i

s b

ase

d u

po

n d

ete

rmin

atio

n o

f ch

an

ge

s i

n f

ina

ncia

l p

ositio

n r

ath

er

tha

n

upon n

et

inco

me d

ete

rmin

atio

n.

A b

rief

exp

lanatio

n o

f th

e P

ark

Dis

tric

t’s g

ove

rnm

enta

l fu

nds

follo

ws:

Genera

l F

und

The G

enera

l F

und i

s th

e g

enera

l opera

ting f

und o

f th

e P

ark

Dis

tric

t.It is

use

d t

o a

ccount

for

all

fin

an

cia

l re

so

urc

es e

xce

pt

tho

se

re

qu

ire

d,

leg

ally

or

by s

ou

nd

fin

an

cia

l m

an

ag

em

en

t, t

o b

e

acc

ounte

d f

or

in a

noth

er

fund.

Speci

al

Reve

nue F

unds

Speci

al

Reve

nue F

unds

are

use

d t

o a

ccount

for

the p

roce

eds

of

speci

fic r

eve

nue s

ourc

es

(oth

er

than c

apita

l pro

ject

s) t

hat

are

legally

rest

rict

ed t

o e

xpenditu

res

for

speci

fic p

urp

ose

s.T

he o

nly

fu

nd o

f th

is t

ype r

eport

ed i

s th

e S

peci

al

Recr

eatio

n F

und.

Debt

Serv

ice F

und

The D

ebt

Serv

ice F

und i

s use

d t

o a

ccount

for

the a

ccum

ula

tion o

f re

sourc

es

for

the p

aym

ent

of

genera

l lo

ng

-term

debt

princi

pal,

inte

rest

and r

ela

ted c

ost

s.

Capita

l P

roje

cts

Fund

Th

e C

ap

ita

l P

roje

cts

Fu

nd

is u

se

d t

o a

cco

un

t fo

r th

e a

cq

uis

itio

n a

nd

co

nstr

uctio

n o

f m

ajo

r ca

pita

l fa

cilit

ies

oth

er

than t

hose

fin

ance

d b

y pro

prieta

ry f

unds.

MA

JOR

FU

ND

S

The P

ark

Dis

tric

t re

port

s th

e f

ollo

win

g m

ajo

r gove

rnm

enta

l fu

nds:

The G

enera

l F

und,

whic

h a

ccounts

for

the p

ark

dis

tric

t’sprim

ary

opera

ting act

iviti

es.

Th

e D

eb

t S

erv

ice

Fu

nd

, w

hic

h a

cco

un

ts f

or

the

pa

ym

en

t o

f lo

ng

-te

rm d

eb

t p

rin

cip

al,

inte

rest

and r

ela

ted c

ost

s.T

he

Ca

pita

l P

roje

cts

Fu

nd

, w

hic

h a

cco

un

ts f

or

fin

an

cia

l re

so

urc

es t

o b

e u

se

d f

or

the

a

cq

uis

itio

n o

r co

nstr

uctio

n o

f m

ajo

r ca

pita

l fa

cilitie

s,

eq

uip

me

nt,

an

d c

ap

ita

l a

sse

t re

pla

cem

ents

A-5

Co

un

try C

lub

Hills

Park

Dis

tric

tN

ote

s T

o T

he F

inan

cia

l S

tate

men

ts

(Co

nti

nu

ed

)F

or

Th

e Y

ear

En

ded

Ap

ril

30,

2012

NO

TE

1 -

SU

MM

AR

Y O

F S

IGN

IFIC

AN

T A

CC

OU

NT

ING

PO

LIC

IES

(C

ON

TIN

UE

D)

C.

Basi

s of

Pre

senta

tion (

Contin

ued)

NO

N-M

AJO

R F

UN

DS

The P

ark

Dis

tric

t re

port

s th

e f

ollo

win

g n

on-m

ajo

r gove

rnm

enta

l fu

nd:

Speci

al

Recr

eatio

n F

und

D.

Basi

s of

Acc

ountin

g

In t

he g

ove

rnm

ent-

wid

e S

tate

ment

of

Net

Ass

ets

and S

tate

ment

of

Act

iviti

es,

the

gove

rnm

enta

la

ctivitie

s a

re p

rese

nte

d u

sin

g t

he

eco

no

mic

re

so

urc

es m

ea

su

rem

en

t fo

cu

s a

nd

th

e a

ccru

al

basi

sof

acc

ountin

g.

Un

de

r th

e a

ccru

al

ba

sis

of

acco

un

tin

g,

reve

nu

es a

re r

eco

gn

ize

d w

he

n

earn

ed a

nd e

xpense

s are

reco

rded w

hen t

he l

iabili

ty i

s in

curr

ed o

r th

e e

conom

ic a

sset

is u

sed.

Re

ve

nu

es,

exp

en

se

s,

ga

ins,

losse

s,

asse

ts,

an

d l

iab

ilit

ies r

esu

ltin

g f

rom

exc

ha

ng

e a

nd

exc

hange

-lik

e t

ransa

ctio

ns

are

reco

gniz

ed w

hen t

he e

xchange t

ake

s pla

ce.

Pro

pert

y ta

xes

are

re

co

gn

ize

d a

s r

eve

nu

es i

n t

he

ye

ar

for

wh

ich

th

ey a

re l

evie

d.

Gra

nts

an

d s

imila

r ite

ms a

re

reco

gn

ize

d a

s r

eve

nu

e a

s s

oo

n a

s a

ll e

ligib

ility

re

qu

ire

me

nts

im

po

se

d b

y t

he

pro

vid

er

ha

ve

been m

et.

Th

e c

urr

en

t fi

na

ncia

l re

so

urc

es m

ea

su

rem

en

t fo

cu

s a

nd

th

e m

od

ifie

d a

ccru

al

ba

sis

of

acco

un

tin

g a

re f

ollo

we

d b

y t

he

go

ve

rnm

en

tal

fun

ds.

Un

de

r th

e m

od

ifie

d a

ccru

al

ba

sis

of

acco

un

tin

g,

reve

nu

es a

re r

eco

gn

ize

d w

he

n s

usce

ptib

le t

o a

ccru

al, i

.e.,

bo

th m

ea

su

rab

le a

nd

a

va

ilab

le t

o f

ina

nce

th

e P

ark

Dis

tric

t’s o

pe

ratio

ns.

“Me

asu

rab

le”

me

an

s t

he

am

ou

nt

of

the

tr

an

sa

ctio

n c

an

be

de

term

ine

d,

an

d “

ava

ilab

le”

me

an

s c

olle

ctib

le w

ith

in t

he

cu

rre

nt

pe

rio

d o

r so

on e

nough t

here

after

to b

e u

sed t

o p

ay

liabili

ties

of

the c

urr

ent

period.

Pro

pert

y ta

xes,

inve

stm

ent

earn

ings,

and c

harg

es

for

serv

ices

are

the p

rim

ary

reve

nue s

ourc

es

susc

eptib

le t

o a

ccru

al.

The P

ark

Dis

tric

t co

nsi

ders

pro

pert

y ta

xes

ava

ilable

if

they

are

due a

nd

colle

cted

by

year-

end.

All

oth

er

reve

nues

are

reco

gniz

ed w

hen c

ash

is

rece

ived.

Exp

enditu

res

are

reco

rded w

hen t

he r

ela

ted f

und l

iabili

ty i

s in

curr

ed.

Th

e P

ark

Dis

tric

t re

po

rts u

ne

arn

ed

/de

ferr

ed

re

ve

nu

es o

n i

ts S

tate

me

nt

of

Ne

t A

sse

ts a

nd

its

G

ove

rnm

enta

l F

unds

Bala

nce S

heet.

For

govern

me

nta

l fu

nd

fin

an

cia

l sta

tem

en

ts,

de

ferr

ed

re

ven

ue

s o

ccu

r w

he

n p

ote

ntia

l re

ven

ue

do

es n

ot

me

et

bo

th t

he

“m

ea

su

rab

le”

an

d “

ava

ilab

le”

crite

ria f

or

reco

gniti

on i

n t

he c

urr

ent

period o

r w

hen r

eso

urc

es

are

rece

ived b

y th

e P

ark

Dis

tric

tb

efo

re i

t h

as a

le

ga

l cla

im t

o t

he

m.

In s

ub

se

qu

en

t p

eri

od

s,

wh

en

bo

th r

eve

nu

e r

eco

gn

itio

n

cri

teri

a a

re m

et,

or

wh

en

th

e P

ark

Dis

tric

t h

as a

le

ga

l cla

im t

o t

he

re

so

urc

es,

the

lia

bili

ty f

or

de

ferr

ed

re

ve

nu

e i

s r

em

ove

d f

rom

th

e G

ove

rnm

en

tal

Fu

nd

s B

ala

nce

Sh

ee

t a

nd

re

ve

nu

e i

s

reco

gniz

ed

acc

ord

ingly

.

E.

Measu

rem

ent

Focu

s

On

th

e g

ove

rnm

en

t-w

ide

Sta

tem

en

t o

f N

et

As

se

ts a

nd

Sta

tem

en

t o

f A

cti

vit

ies

, b

oth

g

ove

rnm

en

tal

activitie

s a

re p

rese

nte

d u

sin

g t

he

flo

w o

f e

co

no

mic

re

so

urc

es m

ea

su

rem

en

t fo

cus,

whic

h m

eans

all

ass

ets

and l

iabili

ties

(wheth

er

curr

ent

or

non-c

urr

ent)

are

incl

uded o

n t

he

Sta

tem

ent

of

Net

Ass

ets

and t

he o

pera

ting s

tate

ments

pre

sent

incr

ease

s and d

ecr

ease

s in

net

tota

l ass

ets

.

Co

un

try C

lub

Hills

Park

Dis

tric

tN

ote

s T

o T

he F

inan

cia

l S

tate

men

ts

(Co

nti

nu

ed

)F

or

Th

e Y

ear

En

ded

Ap

ril

30,

2012

NO

TE

1 -

SU

MM

AR

Y O

F S

IGN

IFIC

AN

T A

CC

OU

NT

ING

PO

LIC

IES

(C

ON

TIN

UE

D)

E.

Measu

rem

ent

Focu

s(C

ontin

ued)

Th

e m

ea

su

rem

en

t fo

cu

s o

f a

ll g

ove

rnm

en

tal

fun

ds i

s t

he

flo

w o

f cu

rre

nt

fin

an

cia

l re

so

urc

es

conce

pt.

Under

this

conce

pt, s

ourc

es

and u

ses

of

financi

al

reso

urc

es,

incl

udin

g c

apita

l outla

ys,

de

bt

pro

ce

ed

s a

nd

de

bt

retire

me

nts

are

re

fle

cte

d i

n o

pe

ratio

ns.

Re

so

urc

es n

ot

ava

ilab

le t

o

fin

an

ce

exp

en

ditu

res a

nd

co

mm

itm

en

ts o

f th

e c

urr

en

t p

eri

od

are

re

co

gn

ize

d a

s d

efe

rre

d

reve

nu

e o

r a

re

se

rva

tio

n o

f fu

nd

eq

uit

y.

Lia

bili

tie

s fo

r cla

ims,

jud

gm

en

ts,

co

mp

en

sa

ted

a

bse

nce

s a

nd

pe

nsio

n c

on

trib

utio

ns,

wh

ich

will

no

t b

e c

urr

en

tly l

iqu

ida

ted

usin

g e

xp

en

da

ble

a

va

ila

ble

fin

an

cia

l re

so

urc

es a

re i

nclu

de

d a

s l

iab

ilit

ies i

n t

he

go

ve

rnm

en

t-w

ide

fin

an

cia

l sta

tem

en

ts,

bu

t a

re e

xclu

de

d f

rom

th

e g

ove

rnm

en

tal

fun

d f

ina

ncia

l sta

tem

en

ts.

Th

e r

ela

ted

exp

en

ditu

res

are

reco

gniz

ed i

n t

he g

ove

rnm

enta

l fu

nd f

inanci

al

state

ments

when t

he l

iabili

ties

are

liq

uid

ate

d.

F.

Use

of

Est

imate

s

Th

e p

rep

ara

tio

n o

f fin

an

cia

l sta

tem

en

ts i

n c

on

form

ity w

ith

ge

ne

rally

acce

pte

d a

cco

un

tin

g

pri

ncip

les r

eq

uir

es m

an

ag

em

en

t to

ma

ke

estim

ate

s a

nd

assu

mp

tio

ns t

ha

t a

ffe

ct

the

re

po

rte

d

am

ounts

of

ass

ets

and l

iabili

ties

and d

iscl

osu

re o

f co

ntin

gent

ass

ets

and l

iabili

ties

at

the d

ate

of

the

fin

an

cia

l sta

tem

en

ts a

nd

th

e r

ep

ort

ed

am

ou

nts

of

reve

nu

es a

nd

exp

en

ditu

res/e

xp

en

se

s

during t

he r

eport

ing p

eriod.

Act

ual

resu

lts c

ould

diff

er

from

those

est

imate

s.

G.

Budgeta

ry D

ata

The P

ark

Dis

tric

t opera

tes

under

the A

ppro

priatio

ns

Act

.A

ll fin

anci

al

state

ments

util

ize t

he t

erm

"b

udget"

to r

efle

ct e

stim

ate

d r

eve

nue a

nd a

ppro

priatio

ns.

The b

udgets

are

pre

pare

d u

sing t

he

sa

me

ba

sis

of

acco

un

tin

g t

o r

efle

ct

reve

nu

es a

nd

exp

en

ditu

res/e

xp

en

se

s a

s i

s u

se

d i

n t

he

p

rep

ara

tio

n o

f th

e b

asic

fin

an

cia

l sta

tem

en

ts.

Fo

r e

ach

fu

nd

, to

tal

fun

d e

xpe

nd

itu

res m

ay n

ot

legally

exc

eed t

he a

ppro

priate

d a

mounts

.A

ll appro

priatio

ns

lapse

at

fisca

l ye

ar-

end.

The D

istr

ict

follo

ws

these

pro

cedure

s in

est

ablis

hin

g t

he b

udgeta

ry d

ata

refle

cted i

n t

he f

inanci

al

state

ments

:

1.

Pri

or

to J

uly

15

, th

e T

rea

su

rer

an

d D

ire

cto

r su

bm

it t

o t

he

Bo

ard

of

Co

mm

issio

ne

rs a

pro

pose

d o

pera

ting b

udget

for

the

fis

ca

l ye

ar

co

mm

en

cin

g M

ay 1

.T

he o

pera

ting b

udget

incl

udes

pro

pose

d e

xpenditu

res

and t

he m

eans

of

financi

ng t

hem

.

2.

Public

hearings

are

conduct

ed a

t a p

ublic

meetin

g t

o o

bta

in t

axp

aye

r co

mm

ents

.

3.

Prior

to S

epte

mber

1,

the b

udget

is l

egally

enact

ed t

hro

ugh p

ass

age o

f an o

rdin

ance

.

4.

The T

reasu

rer

is a

uth

orize

d t

o t

ransf

er

up t

o 1

0%

of

the t

ota

l budget

betw

een b

udget

item

s w

ithin

any

fund;

how

eve

r, a

ny

revi

sions

that

alte

r th

e t

ota

l exp

enditu

res

of

any

fund m

ust

be

appro

ved b

y th

e B

oard

of

Com

mis

sioners

.

5.

Form

al

budgeta

ry i

nte

gra

tion i

s em

plo

yed a

s a m

anagem

ent

contr

ol

devi

ce d

uring t

he y

ear.

6.

Budgete

d a

mounts

are

as

adopte

d b

y th

e B

oard

of

Com

mis

sioners

.

A-6

Co

un

try C

lub

Hills

Park

Dis

tric

tN

ote

s T

o T

he F

inan

cia

l S

tate

men

ts

(Co

nti

nu

ed

)F

or

Th

e Y

ear

En

ded

Ap

ril

30,

2012

NO

TE

1 -

SU

MM

AR

Y O

F S

IGN

IFIC

AN

T A

CC

OU

NT

ING

PO

LIC

IES

(C

ON

TIN

UE

D)

G.

Budgeta

ry D

ata

(C

ontin

ued)

Budgets

for

the G

enera

l, S

peci

al

Reve

nue,

Debt

Serv

ice a

nd C

apita

l P

roje

cts

Funds

are

legally

adopte

d o

n a

basi

s co

nsi

stent

with

GA

AP

.E

xpenditu

res

may

not

legally

exc

eed a

ppro

priatio

ns

at

the f

und l

eve

l.A

ny e

xpenditure

s i

n e

xcess o

f th

e l

egally

adopte

d a

ppro

priation a

t th

e f

und

leve

l m

ust

be a

ppro

ved b

y t

he P

ark

Dis

tric

t B

oard

thro

ugh a

supple

menta

l appro

priation.

No

supple

menta

l appro

priatio

ns

were

made d

uring t

he y

ear

endin

g A

pril

30,

2012

.

By l

aw

, m

an

ag

em

en

t ca

n m

ake

tra

nsfe

rs b

etw

ee

n i

nd

ivid

ua

l e

xp

en

ditu

re l

ine

ite

ms w

ith

in a

fu

nd,

but

appro

val

by

the B

oard

of

Com

mis

sioners

is

required i

n o

rder

for

managem

ent

to m

ake

tr

ansf

ers

betw

een i

ndiv

idual

funds.

Th

e B

oa

rd m

ay a

uth

ori

ze

tra

nsfe

rs n

ot

to e

xce

ed

10

% o

f budgete

d e

xpenditu

res

for

the y

ear.

An o

rdin

ance

must

be f

iled w

ith t

he c

ounty

in o

rder

for

the

budget

to b

e a

mended.

H.

Cash

, C

ash

Equiv

ale

nts

, and I

nve

stm

ents

The P

ark

Dis

tric

t co

nsi

ders

all

hig

hly

liq

uid

inve

stm

ents

with

an i

niti

al

matu

rity

date

with

in t

hre

e

mo

nth

s of

the d

ate

acq

uired b

y th

e P

ark

Dis

tric

t and i

nve

stm

ent

pools

to b

e c

ash

equiv

ale

nts

.

Sta

te S

tatu

tes

auth

orize

d t

he P

ark

Dis

tric

t to

inve

st i

n o

blig

atio

ns

of

the U

.S.

Tre

asu

ry;

federa

lly

insu

red

ba

nk a

cco

un

ts,

cre

dit

un

ion

acco

un

ts o

r m

on

ey m

ark

ets

; h

igh-r

ate

d s

ho

rt-t

erm

corp

ora

te o

blig

atio

ns;

repurc

hase

agre

em

ents

; and t

he I

llinois

Park

Dis

tric

t Liq

uid

Ass

et

Fund

Plu

s.

I.In

terf

und

Rece

ivable

s/P

aya

ble

s

Am

ou

nts

du

e t

o a

nd

du

e f

rom

oth

er

fun

ds a

rise

du

rin

g t

he

co

urs

e o

f th

e P

ark

Dis

tric

t’s

opera

tions

be

ca

use

of

nu

me

rou

s t

ran

sa

ctio

ns b

etw

ee

n f

un

ds t

o f

ina

nce

op

era

tio

ns,

pro

vid

e

serv

ices,

const

ruct

ass

ets

and s

erv

ice d

ebt.

Fund

Due f

rom

Due t

o

Majo

r G

ove

rnm

enta

l F

unds

Corp

ora

te0

$729,2

39

$

Debt

Serv

ice

402,4

08

0

Capita

l P

roje

cts

326,8

31

0

729,2

39

$729,2

39

$

J.

Capita

l A

ssets

Th

e a

cco

un

tin

g t

rea

tme

nt

ove

r p

rop

ert

y,

pla

nt

an

d e

qu

ipm

en

t (c

ap

ita

l a

sse

ts)

de

pe

nd

s o

nw

he

the

r th

e a

sse

ts a

re u

se

d i

n g

ove

rnm

en

tal

fun

d o

pe

ratio

ns o

r p

rop

rie

tary

fu

nd

op

era

tio

ns,

and w

heth

er

they

are

report

ed i

n t

he g

ove

rnm

ent-

wid

e o

r fu

nd f

inanci

al

state

ments

.H

ow

eve

r,th

e D

istr

ict

no l

onger

has

ow

ners

hip

of

any

ass

ets

that

would

be c

onsid

ere

d c

apita

l in

natu

re.

Co

un

try C

lub

Hills

Park

Dis

tric

tN

ote

s T

o T

he F

inan

cia

l S

tate

men

ts

(Co

nti

nu

ed

)F

or

Th

e Y

ear

En

ded

Ap

ril

30,

2012

NO

TE

1 -

SU

MM

AR

Y O

F S

IGN

IFIC

AN

T A

CC

OU

NT

ING

PO

LIC

IES

(C

ON

TIN

UE

D)

K.

Long

-Term

Lia

bili

ties

In t

he g

ove

rnm

ent-

wid

e f

inanci

al

state

ments

, debt

princi

pal

paym

ents

of

both

gove

rnm

ent

and

busi

ness

-typ

e a

ctivitie

s (

wh

en

ap

plic

ab

le)

are

re

po

rte

d a

s d

ecre

ase

s i

n t

he

ba

lan

ce

of

the

lia

bili

ty o

n t

he

Sta

tem

en

t o

f N

et

Asse

ts.

In t

he

fu

nd

fin

an

cia

l sta

tem

en

ts,

ho

we

ve

r, d

eb

t princi

pal

paym

ents

of

gove

rnm

enta

l fu

nds

are

reco

gniz

ed w

hen p

aid

.

L.

Pro

pert

y T

axe

s

Th

e P

ark

Dis

tric

t's p

rop

ert

yta

xe

s a

re l

evie

d e

ach

ca

len

da

r ye

ar

on

all

taxa

ble

re

al

pro

pe

rty

locate

d i

n t

he P

ark

Dis

tric

t.T

he l

evy

becom

es a

n e

nfo

rce

ab

le l

ien

ag

ain

st t

he

pro

pe

rty a

s o

f Ja

nuary

1 o

f th

e l

evy

year.

For

gove

rnm

enta

l fu

nds,

pro

pert

y ta

xes

whic

h a

re l

evi

ed t

o f

und t

he

curr

ent

fisca

l ye

ar

and c

olle

cte

d b

yye

ar-

end a

re r

eco

rded a

s re

venue.

Th

e C

ou

nty

Asse

sso

r is

re

sp

on

sib

le f

or

asse

ssm

en

t o

f a

ll ta

xa

ble

re

al

pro

pe

rty w

ith

in C

oo

k

Co

un

ty (

Co

un

ty)

exce

pt

for

ce

rta

in r

ailr

oa

d p

rop

ert

y w

hic

h i

s a

sse

sse

d d

ire

ctly b

y t

he

sta

te.

Som

e p

ort

ion o

f th

e C

ounty

is

reass

ess

ed e

ach

year

on a

repeatin

g s

chedule

est

ablis

hed b

y th

e

County

A

ssess

or.

The C

ounty

Cle

rk c

om

pute

s t

he a

nnual

tax

for

each p

arc

el

of

real

pro

pert

y

an

d p

rep

are

s t

ax b

oo

ks u

se

d b

y t

he

Co

un

ty C

olle

cto

r a

s t

he

ba

sis

fo

r is

su

ing

ta

x b

ills t

o a

ll ta

xpaye

rs i

n t

he C

ounty

.

Pro

pert

y ta

xes

are

colle

cted b

y th

e C

ounty

Colle

ctor

and a

re s

ubm

itted t

o t

he C

ounty

Tre

asu

rer,

w

ho r

em

its t

o t

he u

nits

their r

esp

ect

ive s

hare

s of

the c

olle

ctio

ns.

Taxe

s le

vied i

n o

ne c

ale

ndar

ye

ar

be

co

me

du

e a

nd

pa

ya

ble

in

tw

o i

nsta

llme

nts

on

Ma

rch

1 a

nd

Se

pte

mb

er

1 d

uri

ng

th

e

follo

win

g c

ale

ndar

year.

The f

irst

inst

allm

ent

is a

n e

stim

ate

d b

ill,

and i

s one

-half

of

the p

rior

year's

tax

bill

.T

he s

eco

nd

insta

llment

is b

ased o

n t

he c

urr

ent

levy

, assessm

ent

and e

qualiz

atio

n,

and a

ny c

hanges f

rom

th

e p

rior

year

will

be r

efle

cte

d i

n t

he s

econd i

nsta

llment

bill

.T

axe

s m

ust

be

le

vie

d b

y t

he

la

st

Tuesd

ay

in D

ece

mber

for

the l

evy

year.

M.

Pers

onal

Pro

pert

y R

epla

cem

ent

Tax

All

ad v

alo

rem

pers

onal

pro

pert

y ta

xes

in I

llinois

were

abolis

hed,

effect

ive J

anuary

1,

1979.

AP

ers

onal

Pro

pert

y R

epla

cem

ent

Tax

was

enact

ed,

effect

ive J

uly

1,

1979.

The

const

itutio

nalit

y of

this

repla

cem

ent

tax

has

been u

pheld

by

the S

upre

me C

ourt

of

Illin

ois

.

The P

ers

onal

Pro

pert

y R

epla

cem

ent

Tax

repre

sents

an a

dditi

onal

inco

me t

ax

for

corp

ora

tions

(in

clu

din

g c

ert

ain

utilit

ies)

at

the

ra

te o

f 2

.5%

of

the

ne

t ta

xa

ble

in

co

me

; a

n i

nco

me

ta

x f

or

part

ners

hip

s and S

corp

ora

tions

at

the r

ate

of

1.5

% o

f net

taxa

ble

inco

me;

and a

tax

at

the r

ate

of

0.8

% o

f in

vest

ed c

apita

l fo

r public

util

ities

pro

vidin

g g

as,

com

munic

atio

ns,

ele

ctrica

l and w

ate

r se

rvic

es.

All

ad v

alo

rem

pers

onal

pro

pert

y ta

xes

in I

llinois

were

abolis

hed,

effect

ive J

anuary

1,

1979.

AP

ers

onal

Pro

pert

y R

epla

cem

ent

Tax

was

enact

ed,

effect

ive J

uly

1,

1979.

The

const

itutio

nalit

y of

this

repla

cem

ent

tax

has

been u

pheld

by

the S

upre

me C

ourt

of

Illin

ois

.

A-7

Co

un

try C

lub

Hills

Park

Dis

tric

tN

ote

s T

o T

he F

inan

cia

l S

tate

men

ts

(Co

nti

nu

ed

)F

or

Th

e Y

ear

En

ded

Ap

ril

30,

2012

NO

TE

1 -

SU

MM

AR

Y O

F S

IGN

IFIC

AN

T A

CC

OU

NT

ING

PO

LIC

IES

(C

ON

TIN

UE

D)

M.

Pers

onal

Pro

pert

y R

epla

cem

ent

Tax

The P

ers

onal

Pro

pert

y R

epla

cem

ent

Tax

repre

sents

an a

dditi

onal

inco

me t

ax

for

corp

ora

tions

(in

clu

din

g c

ert

ain

utilit

ies)

at

the

ra

te o

f 2

.5%

of

the

ne

t ta

xa

ble

in

co

me

; a

n i

nco

me

ta

x f

or

part

ners

hip

s and S

corp

ora

tions

at

the r

ate

of

1.5

% o

f net

taxa

ble

inco

me;

and a

tax

at

the r

ate

of

0.8

% o

f in

vest

ed c

apita

l fo

r public

util

ities

pro

vidin

g g

as,

com

munic

atio

ns,

ele

ctrica

l and w

ate

r se

rvic

es.

Reve

nues

colle

cted u

nder

the r

epla

cem

ent

tax

are

held

in a

speci

al

fund i

n t

he S

tate

Tre

asu

ry

ca

lled

th

e P

ers

on

al

Pro

pe

rty T

ax

Re

pla

ce

me

nt

Fu

nd

.M

on

ey f

rom

su

ch

Fu

nd

is a

lloca

ted

to

each

taxi

ng d

istr

ict

in J

anuary

, M

arc

h,

April,

May,

June,

July

, A

ugust

, O

ctober,

and D

ece

mber.

N.

GA

SB

P

ronounce

ments

In J

un

e 1

99

9,

the

GA

SB

issu

ed

Sta

tem

en

t N

o.

34

, “B

asic

Fin

an

cia

l S

tate

me

nts

an

d

Managem

ent’s

Dis

cu

ssio

n a

nd

An

aly

sis

fo

r S

tate

an

d L

oca

l G

ove

rnm

en

ts.”

This

S

tate

ment

est

ablis

hes

new

fin

anci

al

report

ing r

equirem

ents

for

state

and l

oca

l gove

rnm

ents

thro

ughout

the

Unite

d S

tate

s.T

he

re

qu

ire

me

nts

of

this

Sta

tem

en

t a

re e

ffe

ctive

in

th

ree

ph

ase

s b

ase

d o

n a

gove

rnm

ent’s

tota

l re

venues

in t

he f

irst

year

endin

g a

fter

June 1

5,

1999.

The P

ark

Dis

tric

t w

as

required t

o a

dopt

this

Sta

tem

ent

for

the p

eriod b

egin

nin

g M

ay

1,

2004

.

O.

Equity

C

lass

ifica

tions

GO

VE

RN

ME

NT

-WID

E F

INA

NC

IAL S

TA

TE

ME

NT

S

Equity

is

classi

fied a

s net

ass

ets

and d

ispla

yed i

n t

hre

e c

om

ponents

:

Inve

sted i

n c

apita

l ass

ets

–co

nsi

sts

of

capita

l ass

ets

, net

of

acc

um

ula

ted d

epre

ciatio

n

and n

et

of

rela

ted d

ebt.

Rest

rict

ed n

et

ass

ets

–co

nsi

sts

of

net

ass

ets

with

const

rain

ts p

lace

d o

n t

heir u

se e

ither

by e

xte

rna

l g

rou

ps s

uch

as c

red

ito

rs,

gra

nto

rs,

co

ntr

ibu

tors

, o

r la

ws o

r re

gu

latio

ns o

f oth

er

gove

rnm

ents

, or

law

thro

ugh c

onst

itutio

nal

pro

visi

ons

or

enablin

g l

egis

latio

n.

Unre

strict

ed n

et

ass

ets

–consis

ts o

f all

oth

er

net

assets

that

do n

ot

meet

the d

efin

ition

of

rest

rict

ed o

r in

vest

ed i

n c

apita

l ass

ets

.

FU

ND

FIN

AN

CIA

L S

TA

TE

ME

NT

S

Gove

rnm

enta

l fu

nd e

quity

is

class

ified a

s fu

nd b

ala

nce

.T

he c

om

ponents

of

fund b

ala

nce

are

:

Non

-spendable

–co

nsi

sts

of

reso

urc

es

that

cannot

be s

pent

beca

use

of

the

ir f

orm

.R

est

rict

ed

–co

nsi

sts

of

reso

urc

es

whic

h h

ave

lim

itatio

ns

impose

d b

y enablin

g l

egis

latio

n

and l

imita

tions

impose

d b

y cr

edito

rs,

gra

nto

rs,

or

contr

ibuto

rs.

Com

mitt

ed

–co

nsis

ts o

f re

so

urc

es w

hic

h h

ave

lim

ita

tio

ns i

mp

ose

d b

y t

he

go

ve

rnin

g

board

thro

ugh f

orm

al

act

ion.

Ass

igned

–co

nsi

sts

of

reso

urc

es

whic

h h

ave

lim

itatio

ns

resu

lting f

rom

inte

nded u

se.

Unass

igned

–co

nsi

sts

of

the r

esi

dual

net

reso

urc

es

of

a f

und.

Co

un

try C

lub

Hills

Park

Dis

tric

tN

ote

s T

o T

he F

inan

cia

l S

tate

men

ts

(Co

nti

nu

ed

)F

or

Th

e Y

ear

En

ded

Ap

ril

30,

2012

NO

TE

1 -

SU

MM

AR

Y O

F S

IGN

IFIC

AN

T A

CC

OU

NT

ING

PO

LIC

IES

(C

ON

TIN

UE

D)

The P

ark

Dis

tric

t’s f

low

of

funds

ass

um

ptio

n p

rescribes t

hat

the f

unds w

ith t

he h

ighest

leve

l of

const

rain

t are

exp

ended f

irst

.If r

est

rict

ed o

r unre

strict

ed f

unds

are

ava

ilable

for

spendin

g,

the

restr

icte

d f

un

ds a

re s

pe

nt

firs

t.If

diffe

ren

t le

ve

ls o

f u

nre

str

icte

d f

un

ds a

rea

va

ilab

le fo

r sp

endin

g,

the

Pa

rk D

istr

ict

co

nsid

ers

co

mm

itte

d f

un

ds t

o b

e e

xp

en

de

d f

irst

follo

we

d b

y

ass

igned a

nd,

last

ly,

unass

igned f

unds. Debt

Capita

lN

on-M

ajo

rF

und

Genera

lS

erv

ice

Pro

ject

sF

unds

Tota

l

Rest

ricte

dD

ebt

Serv

ice

0$

850,7

53

$0

$0

$850,7

53

$S

peci

al

Recr

eatio

n0

00

196,2

74

196,2

74

Com

mitt

ed

Capita

l O

utla

y0

0326,8

31

0326,8

31

Unass

igned

500,7

25

00

0500,7

25

500,7

25

$850,7

53

$326,8

31

$196,2

74

$1,8

74,5

83

$

NO

TE

2-

CA

SH

AN

D C

AS

H E

QU

IVA

LE

NT

S

At

Ap

ril

30

2012

, th

e c

arr

yin

g a

mo

un

t o

f th

e P

ark

Dis

tric

t's d

eposits

was $

1,8

82,5

47

and

the f

air

valu

ew

as $

1,8

82,5

47

.T

his

am

ou

nt

is h

eld

in

th

e I

llin

ois

Pa

rk D

istr

ict

Liq

uid

Asse

tP

lus M

oney

Mark

et

Acc

ount.

Th

is p

oo

led

in

ve

stm

en

t w

ith

oth

er

pa

rk d

istr

icts

is s

imila

r in

na

ture

to

a m

on

ey

ma

rke

t fu

nd

an

d c

on

sis

ts p

rim

ari

ly o

f ce

rtif

ica

tes o

f d

ep

osit

, U

.S.

Go

ve

rnm

en

t se

cu

riti

es,

com

merc

ial

paper,

and c

orp

ora

te b

onds.

Beca

use

indiv

idual

secu

ritie

s are

not

ow

ned b

y th

e P

ark

D

istr

ict, a

mounts

inve

sted i

n t

he I

llinois

Park

Dis

tric

t Liq

uid

Ass

et

Plu

s M

oney

Mark

et

Acc

ount

are

not

cate

gorize

d.

The f

und i

s audite

d a

nnually

and t

he f

und m

anager

is r

egis

tere

d w

ith t

he N

AS

D.

The f

air v

alu

e o

f th

e P

ark

Dis

tric

t’s p

osi

tion i

n t

he p

ool

is e

qual

to t

he v

alu

e o

f its

pool

share

s.T

he

inve

stm

ent

in t

he I

llinois

Park

Dis

tric

t Liq

uid

Ass

et

Plu

s M

oney

Mark

et

Acc

ount

has

been r

eco

rded

at

fair v

alu

e.

Carr

ying A

mount

Fair V

alu

e

Inve

stm

ent

in I

llinois

Park

Dis

tric

t

Liq

uid

Ass

et

Plu

s M

oney

Mark

et

Acc

ount

1,8

82,5

47

1,8

82,5

47

$1,8

82,5

47

$1,8

82,5

47

NO

TE

3-

DE

FIC

IT F

UN

D B

ALA

NC

ES

At

April 30,

2012,

none o

f th

e P

ark

Dis

tric

t’s f

unds

have

defic

it fu

nd b

ala

nce

s.

NO

TE

4 -

EX

CE

SS

OF

AC

TU

AL E

XP

EN

DIT

UR

ES

OV

ER

BU

DG

ET

IN

IN

DIV

IDU

AL F

UN

DS

The f

ollo

win

g f

und h

ad a

n e

xcess

of

act

ual

exp

enditu

res

ove

r le

gally

enact

ed b

udgete

d a

mounts

for

the y

ear

ended A

pril

30, 2012

:

Fund

Bu

dg

et

Actu

al

De

bt

Se

rvic

e925,2

80

$9

25

,52

1$

A-8

Co

un

try C

lub

Hills

Park

Dis

tric

tN

ote

s T

o T

he F

inan

cia

l S

tate

men

ts

(Co

nti

nu

ed

)F

or

Th

e Y

ear

En

ded

Ap

ril

30,

2012

NO

TE

5 -

DE

BT

T

RA

NS

AC

TIO

NS

A.

Gove

rnm

enta

l A

ctiv

ities

-D

ebt

Tra

nsa

ctio

ns

The f

ollo

win

g i

s a s

um

mary

of

debt

transa

ctio

ns

for

the y

ear

ended A

pril

30,

2012

:A

mount

Due

Bala

nce

New

Princi

pal

Bala

nce

With

in4/3

0/2

01

1D

ebt

Paid

4/3

0/2

01

2O

ne Y

ear

Genera

l O

blig

atio

n B

onds

Series

2003A

$3,8

60

,000

$0

$(2

00

,000)

$3,6

60,0

00

$2

10,0

00

Series

2010A

429,2

00

0(4

29,2

00

)0

0S

eries

2010B

94,0

35

0(9

4,0

35)

00

Series

2011A

0434,8

55

0434,8

55

434,8

55

Series

2010

B0

90,0

35

09

0,0

35

90,0

35

Tota

l$

4,3

83,2

35

$5

24,8

90

$(7

23,2

35

)$

4,1

84,8

90

$734,8

90

B.

Debt

Com

mitm

ents

Ge

ne

ral

Ob

liga

tio

n B

on

ds (

Alte

rna

te R

eve

nu

e S

ou

rce

), S

eri

es 2

00

3A

fo

r $

4,3

65

,00

0;

Issu

ed

F

eb

rua

ry 1

, 2

00

3.

Inte

rest

is p

aya

ble

se

mi-

an

nu

ally

at

rate

s v

ary

ing

fro

m 2

.60%

-5.1

5%

.P

aym

ent

is d

ue e

ach

Decem

ber

from

2007 t

hro

ugh 2

024.

Genera

l O

blig

atio

n B

onds,

Series 2

011A

fo

r $434,8

55

; Is

sued N

ove

mber

15,

2011.

Princi

pal

and inte

rest

at

a r

ate

of

2.9

5%

are

due o

n N

ove

mber

15,

2012.

Gene

ral

Oblig

atio

n B

onds,

Series

2011B

for

$9

0,0

35

; Is

sued N

ove

mber

15

,2011

.P

rinci

pal

and

inte

rest

at

a r

ate

of

5.9

7%

are

due o

n N

ove

mber

15,

2012.

C.

Annual

Debt

Serv

ice R

equirem

ents

Annual

debt

serv

ice r

equirem

ents

to m

atu

rity

for

genera

l oblig

atio

n d

ebt, i

ncl

udin

g i

nte

rest

, are

as

follo

ws:

Year

Endin

gP

rinci

pal

Inte

rest

Tota

l

201

3734,8

90

194,6

35

929,5

25

201

42

20,0

00

166,8

58

386,8

58

201

52

30,0

00

157,5

08

387,5

08

201

62

40,0

00

147,3

88

387,3

88

201

72

50,0

00

136,5

87

386,5

87

2018

-202

21

,450

,000

492,7

67

1,9

42,7

67

2023

-202

51,0

60

,000

110,2

93

1,1

70,2

93

Tota

l$

4,1

84,8

90

$1

,406,0

36

$5,5

90,9

26

Co

un

try C

lub

Hills

Park

Dis

tric

tN

ote

s T

o T

he F

inan

cia

l S

tate

men

ts

(Co

nti

nu

ed

)F

or

Th

e Y

ear

En

ded

Ap

ril

30,

2012

NO

TE

5 -

DE

BT

T

RA

NS

AC

TIO

NS

(CO

NT

INU

ED

)

C.

Annual

Debt

Serv

ice R

equirem

ents

(C

ontin

ued)

Th

e P

ark

Dis

tric

t is

su

bje

ct

to t

he

Illi

no

is P

ark

Dis

tric

t C

od

e w

hic

h l

imits t

he

am

ou

nt

of

bo

nd

ind

eb

ted

ne

ss t

o 2

.87

5%

of

the

mo

st

rece

ntly a

vaila

ble

eq

ua

lize

d a

sse

sse

d v

alu

atio

n.

As o

f A

pril

30,

201

2,

the P

ark

Dis

tric

t’s l

egal

debt

marg

in is

$6,4

18,9

12

.

D.

Defe

asa

nce

of

Debt

In p

rio

r ye

ars

, th

e P

ark

Dis

tric

t h

as d

efe

ase

d v

ari

ou

s b

on

d i

ssu

es b

y

cre

atin

g

se

pa

rate

ir

revo

ca

ble

tru

st

fun

ds.

Ne

w d

eb

t h

as b

ee

n i

ssu

ed

an

d t

he

pro

ce

ed

s h

ave

be

en

use

d t

o

purc

hase

U.S

. gove

rnm

ent

secu

ritie

s th

at

were

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A-9

APPENDIX B

DESCRIBING BOOK-ENTRY-ONLY ISSUANCE

1. The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the Bonds (the “Securities”). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of such issue, and will be deposited with DTC.

2. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has Standard & Poor’s rating: AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com.

3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each Security (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities, except in the event that use of the book-entry system for the Securities is discontinued.

4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

B-1

5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants

to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them.

6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.

7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Securities unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the District as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy).

8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the District or the Paying Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Paying Agent, or the District, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the District or the Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to any Tender/Remarketing Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the Participant’s interest in the Securities, on DTC’s records, to any Tender/Remarketing Agent. The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC’s records and followed by a book-entry credit of tendered Securities to any Tender/Remarketing Agent’s DTC account.

10. DTC may discontinue providing its services as depository with respect to the Securities at any time by giving reasonable notice to the District or the Paying Agent. Under such circumstances, in the event that a successor depository is not obtained, Security certificates are required to be printed and delivered.

11. The District may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and delivered to DTC.

12. The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that the District believes to be reliable, but the District takes no responsibility for the accuracy thereof.

B-2

APPENDIX C

BOND INSURANCE AND SPECIMEN MUNICIPAL BOND INSURANCE POLICY

BOND INSURANCE POLICY

Concurrently with the issuance of the 2013A Bonds, Build America Mutual Assurance Company (“BAM”) will issue its Municipal Bond Insurance Policy for the 2013A Bonds (the “Policy”). The Policy guarantees the scheduled payment of principal of and interest on the 2013A Bonds when due as set forth in the form of the Policy included as an exhibit to this Final Official Statement.

The Policy is not covered by any insurance security or guaranty fund established under New York, California, Connecticut or Florida insurance law.

BUILD AMERICA MUTUAL ASSURANCE COMPANY

BAM is a New York domiciled mutual insurance corporation. BAM provides credit enhancement products solely to issuers in the U.S. public finance markets. BAM will only insure obligations of states, political subdivisions, integral parts of states or political subdivisions or entities otherwise eligible for the exclusion of income under section 115 of the U.S. Internal Revenue Code of 1986, as amended. No member of BAM is liable for the obligations of BAM.

The address of the principal executive offices of BAM is: 1 World Financial Center, 27th Floor, 200 Liberty Street, New York, New York 10281, its telephone number is: 212-235-2500, and its website is located at: www.buildamerica.com.

BAM is licensed and subject to regulation as a financial guaranty insurance corporation under the laws of the State of New York and in particular Articles 41 and 69 of the New York Insurance Law.

BAM’s financial strength is rated “AA/Stable” by Standard and Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business (“S&P”). An explanation of the significance of the rating and current reports may be obtained from S&P at www.standardandpoors.com. The rating of BAM should be evaluated independently. The rating reflects the S&P’s current assessment of the creditworthiness of BAM and its ability to pay claims on its policies of insurance. The above rating is not a recommendation to buy, sell or hold the Bonds, and such rating is subject to revision or withdrawal at any time by S&P, including withdrawal initiated at the request of BAM in its sole discretion. Any downward revision or withdrawal of the above rating may have an adverse effect on the market price of the Bonds. BAM only guarantees scheduled principal and scheduled interest payments payable by the issuer of the Bonds on the date(s) when such amounts were initially scheduled to become due and payable (subject to and in accordance with the terms of the Policy), and BAM does not guarantee the market price or liquidity of the Bonds, nor does it guarantee that the rating on the Bonds will not be revised or withdrawn.

Capitalization of BAM

BAM’s total admitted assets, total liabilities, and total capital and surplus, as of June 30, 2013 and as prepared in accordance with statutory accounting practices prescribed or permitted by the New York State Department of Financial Services were $485.8 million, $9.2 million and $476.6 million, respectively.

BAM is party to a first loss reinsurance treaty that provides first loss protection up to a maximum of 15% of the par amount outstanding for each policy issued by BAM, subject to certain limitations and restrictions.

C-1

BAM’s most recent Statutory Annual Statement, which has been filed with the New York State Insurance Department and posted on BAM’s website at www.buildamerica.com, is incorporated herein by reference and may be obtained, without charge, upon request to BAM at its address provided above (Attention: Finance Department). Future financial statements will similarly be made available when published.

BAM makes no representation regarding the Bonds or the advisability of investing in the Bonds. In addition, BAM has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Final Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding BAM, supplied by BAM and presented under the heading “BOND INSURANCE”.

C-2

MUNICIPAL BOND INSURANCE POLICY

ISSUER: [NAME OF ISSUER]

MEMBER: [NAME OF MEMBER]

Policy No: _____

BONDS: $__________ in aggregate principal amount of [NAME OF TRANSACTION] [and maturing on]

Effective Date: _________

Risk Premium: $__________ Member Surplus Contribution: $ _________

Total Insurance Payment: $_________

BUILD AMERICA MUTUAL ASSURANCE COMPANY (“BAM”), for consideration received, hereby UNCONDITIONALLY

AND IRREVOCABLY agrees to pay to the trustee (the “Trustee”) or paying agent (the “Paying Agent”) for the Bonds named above (as set forth in the documentation providing for the issuance and securing of the Bonds), for the benefit of the Owners or, at the election of BAM, directly to each Owner, subject only to the terms of this Policy (which includes each endorsement hereto), that portion of the principal of and interest on the Bonds that shall become Due for Payment but shall be unpaid by reason of Nonpayment by the Issuer.

On the later of the day on which such principal and interest becomes Due for Payment or the first Business Day following the Business Day on which BAM shall have received Notice of Nonpayment, BAM will disburse (but without duplication in the case of duplicate claims for the same Nonpayment) to or for the benefit of each Owner of the Bonds, the face amount of principal of and interest on the Bonds that is then Due for Payment but is then unpaid by reason of Nonpayment by the Issuer, but only upon receipt by BAM, in a form reasonably satisfactory to it, of (a) evidence of the Owner’s right to receive payment of such principal or interest then Due for Payment and (b) evidence, including any appropriate instruments of assignment, that all of the Owner’s rights with respect to payment of such principal or interest that is Due for Payment shall thereupon vest in BAM. A Notice of Nonpayment will be deemed received on a given Business Day if it is received prior to 1:00 p.m. (New York time) on such Business Day; otherwise, it will be deemed received on the next Business Day. If any Notice of Nonpayment received by BAM is incomplete, it shall be deemed not to have been received by BAM for purposes of the preceding sentence, and BAM shall promptly so advise the Trustee, Paying Agent or Owner, as appropriate, any of whom may submit an amended Notice of Nonpayment. Upon disbursement under this Policy in respect of a Bond and to the extent of such payment, BAM shall become the owner of such Bond, any appurtenant coupon to such Bond and right to receipt of payment of principal of or interest on such Bond and shall be fully subrogated to the rights of the Owner, including the Owner’s right to receive payments under such Bond. Payment by BAM either to the Trustee or Paying Agent for the benefit of the Owners, or directly to the Owners, on account of any Nonpayment shall discharge the obligation of BAM under this Policy with respect to said Nonpayment.

Except to the extent expressly modified by an endorsement hereto, the following terms shall have the meanings specified for all purposes of this Policy. “Business Day” means any day other than (a) a Saturday or Sunday or (b) a day on which banking institutions in the State of New York or the Insurer’s Fiscal Agent (as defined herein) are authorized or required by law or executive order to remain closed. “Due for Payment” means (a) when referring to the principal of a Bond, payable on the stated maturity date thereof or the date on which the same shall have been duly called for mandatory sinking fund redemption and does not refer to any earlier date on which payment is due by reason of call for redemption (other than by mandatory sinking fund redemption), acceleration or other advancement of maturity (unless BAM shall elect, in its sole discretion, to pay such principal due upon such acceleration together with any accrued interest to the date of acceleration) and (b) when referring to interest on a Bond, payable on the stated date for payment of interest. “Nonpayment” means, in respect of a Bond, the failure of the Issuer to have provided sufficient funds to the Trustee or, if there is no Trustee, to the Paying Agent for payment in full of all principal and interest that is Due for Payment on such Bond. “Nonpayment” shall also include, in respect of a Bond, any payment made to an Owner by or on behalf of the Issuer of principal or interest that is Due for Payment, which payment has been recovered from such Owner pursuant to the United States Bankruptcy Code in accordance with a final, nonappealable order of a court having competent jurisdiction. “Notice” means delivery to BAM of a notice of claim and certificate, by certified mail, email or telecopy as set forth on the attached Schedule or other acceptable electronic delivery, in a form satisfactory to BAM, from and signed by an Owner, the Trustee or the Paying Agent, which notice shall specify (a) the person or entity making the claim, (b) the Policy Number, (c) the claimed amount, (d) payment instructions and (e) the date such claimed amount becomes or became Due for Payment. “Owner” means, in respect of a Bond, the person or entity who, at the time of Nonpayment, is entitled under the terms of such Bond to payment thereof, except that “Owner” shall not include the Issuer, the Member or any other person or entity whose direct or indirect obligation constitutes the underlying security for the Bonds.

2

BAM may appoint a fiscal agent (the “Insurer’s Fiscal Agent”) for purposes of this Policy by giving written notice to the Trustee, the Paying Agent, the Member and the Issuer specifying the name and notice address of the Insurer’s Fiscal Agent. From and after the date of receipt of such notice by the Trustee, the Paying Agent, the Member or the Issuer (a) copies of all notices required to be delivered to BAM pursuant to this Policy shall be simultaneously delivered to the Insurer’s Fiscal Agent and to BAM and shall not be deemed received until received by both and (b) all payments required to be made by BAM under this Policy may be made directly by BAM or by the Insurer’s Fiscal Agent on behalf of BAM. The Insurer’s Fiscal Agent is the agent of BAM only, and the Insurer’s Fiscal Agent shall in no event be liable to the Trustee, Paying Agent or any Owner for any act of the Insurer’s Fiscal Agent or any failure of BAM to deposit or cause to be deposited sufficient funds to make payments due under this Policy.

To the fullest extent permitted by applicable law, BAM agrees not to assert, and hereby waives, only for the benefit of each Owner, all rights (whether by counterclaim, setoff or otherwise) and defenses (including, without limitation, the defense of fraud), whether acquired by subrogation, assignment or otherwise, to the extent that such rights and defenses may be available to BAM to avoid payment of its obligations under this Policy in accordance with the express provisions of this Policy. This Policy may not be canceled or revoked.

This Policy sets forth in full the undertaking of BAM and shall not be modified, altered or affected by any other agreement or instrument, including any modification or amendment thereto. Except to the extent expressly modified by an endorsement hereto, any premium paid in respect of this Policy is nonrefundable for any reason whatsoever, including payment, or provision being made for payment, of the Bonds prior to maturity. THIS POLICY IS NOT COVERED BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND SPECIFIED IN ARTICLE 76 OF THE NEW YORK INSURANCE LAW. THIS POLICY IS ISSUED WITHOUT CONTINGENT MUTUAL LIABILITY FOR ASSESSMENT.

In witness whereof, BUILD AMERICA MUTUAL ASSURANCE COMPANY has caused this Policy to be executed on its behalf by its Authorized Officer.

BUILD AMERICA MUTUAL ASSURANCE COMPANY By: _______________________________________ Authorized Officer

3

Notices (Unless Otherwise Specified by BAM) Email: [email protected] Address: 1 World Financial Center, 27th floor 200 Liberty Street New York, New York 10281 Telecopy: 212-962-1524 (attention: Claims)

APPENDIX D

PROPOSED FORM OF OPINION OF BOND COUNSEL

[LETTERHEAD OF CHAPMAN AND CUTLER LLP]

[TO BE DATED CLOSING DATE]

We hereby certify that we have examined certified copy of the proceedings of the Board of Park Commissioners of the Country Club Hills Park District, Cook County, Illinois (the “District”), passed preliminary to the issue by the District of its fully registered General Obligation Park Bonds (Alternate Revenue Source), Series 2013A (the “Bonds”), to the amount of $4,390,000, dated November 5, 2013, due serially on December 1 of the years and in the amounts and bearing interest as follows:

2014 $235,000 2.00% 2015 240,000 2.00% 2016 245,000 3.00% 2017 250,000 3.00% 2018 260,000 3.00% 2019 270,000 3.00% 2020 275,000 3.00% 2021 285,000 3.00% 2022 295,000 3.50% 2023 305,000 4.00% 2024 315,000 4.00% 2025 330,000 4.00% 2026 345,000 4.00% 2028 740,000 5.00%

the Bonds due on December 1, 2028, being subject to mandatory redemption, in integral multiples of $5,000 selected by lot by the Bond Registrar, at a redemption price of par plus accrued interest to the redemption date, on December 1, 2027, in the principal amount of $360,000, and the Bonds due on and after December 1, 2023, being subject to redemption prior to maturity at the option of the District as a whole, or in part in integral multiples of $5,000 in any order of their maturity as determined by the District (less than all of the Bonds of a single maturity to be selected by the Bond Registrar), on December 1, 2022, and on any date thereafter, at a redemption price of par plus accrued interest to the redemption date, as provided in the Proceedings, and we are of the opinion that the Proceedings show lawful authority for said issue under the laws of the State of Illinois now in force.

D-1

We further certify that we have examined the form of bond prescribed for said issue and find the same in due form of law, and in our opinion said issue, to the amount named, is valid and legally binding upon the District, and is payable from (a) proceeds received by the District from the issuance of its general obligation bonds or notes to the fullest extent permitted by law, including Section 15.01 of the Local Government Debt Reform Act of the State of Illinois, as amended and Section 6-4 of the Park District Code of the State of Illinois, as amended, and such other funds of the District as may be lawfully available and annually appropriated for such payment, and (b) ad valorem property taxes upon all taxable property in the District without limitation as to rate or amount, except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion.

It is our opinion that, subject to the District’s compliance with certain covenants, under present law, interest on the Bonds is excludable from gross income of the owners thereof for federal income tax purposes and is not included as an item of tax preference in computing the alternative minimum tax for individuals and corporations under the Internal Revenue Code of 1986, as amended (the “Code”), but is taken into account in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. Failure to comply with certain of such District covenants could cause interest on the Bonds to be includible in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds. Ownership of the Bonds may result in other federal tax consequences to certain taxpayers, and we express no opinion regarding any such collateral consequences arising with respect to the Bonds.

It is also our opinion that the Bonds are “qualified tax-exempt obligations” pursuant to Section 265(b)(3) of the Code.

We express no opinion herein as to the accuracy, adequacy or completeness of any information furnished to any person in connection with any offer or sale of the Bonds.

In rendering this opinion, we have relied upon certifications of the District with respect to certain material facts solely within the District’s knowledge. Our opinion represents our legal judgment based upon our review of the law and the facts that we deem relevant to render such opinion and is not a guarantee of a result. This opinion is given as of the date hereof and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur.

D-2

PROPOSED FORM OF OPINION OF BOND COUNSEL

[LETTERHEAD OF CHAPMAN AND CUTLER LLP]

[TO BE DATED CLOSING DATE]

We hereby certify that we have examined certified copy of the proceedings (the “Proceedings”) of the

Board of Park Commissioners of the Country Club Hills Park District, Cook County, Illinois (the “District”), passed preliminary to the issue by the District of its fully registered 2.00% General Obligation Limited Tax Park Bonds, Series 2013B (the “Bonds”), to the amount of $467,000, dated November 5, 2013, and due on November 15, 2014, and we are of the opinion that the Proceedings show lawful authority for said issue under the laws of the State of Illinois now in force.

We further certify that we have examined the form of bond prescribed for said issue and find the same in due form of law, and in our opinion said issue, to the amount named, is valid and legally binding upon the District and is payable from any funds of the District legally available for such purpose, and all taxable property in the District is subject to the levy of taxes to pay the same without limitation as to rate, except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. The amount of said taxes that may be extended to pay the Bonds is, however, limited as provided by the Property Tax Extension Limitation Law of the State of Illinois, as amended (the “Law”). The Law provides that the annual amount of said taxes to be extended to pay the Bonds and all other limited bonds (as defined in the Local Government Debt Reform Act of the State of Illinois, as amended) heretofore and hereafter issued by the District shall not exceed the debt service extension base (as defined in the Law) of the District, as more fully described in the Proceedings.

It is our opinion that, subject to the District’s compliance with certain covenants, under present law, interest on the Bonds is excludable from gross income of the owners thereof for federal income tax purposes and is not included as an item of tax preference in computing the alternative minimum tax for individuals and corporations under the Internal Revenue Code of 1986, as amended (the “Code”), but is taken into account in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. Failure to comply with certain of such District covenants could cause interest on the Bonds to be includible in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds. Ownership of the Bonds may result in other federal tax consequences to certain taxpayers, and we express no opinion regarding any such collateral consequences arising with respect to the Bonds.

It is also our opinion that the Bonds are “qualified tax-exempt obligations” pursuant to Section 265(b)(3) of the Code.

We express no opinion herein as to the accuracy, adequacy or completeness of any information furnished to any person in connection with any offer or sale of the Bonds.

In rendering this opinion, we have relied upon certifications of the District with respect to certain material facts within the District’s knowledge. Our opinion represents our legal judgment based upon our review of the law and the facts that we deem relevant to render such opinion and is not a guarantee of a result. This opinion is given as of the date hereof and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur.

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d.a. davidson & co. · bonds is payable on november 15, 2014. the bonds will be issued using a...

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