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VILLAGE OF POPLAR GROVE “A GREAT PLACE TO CALL HOME”

FINANCE COMMITTEE AGENDA

March 3, 2014 – 6:30 PM

Members – Robert Fry (Chairman)

Owen Costanza (Trustee)

Judi Zangs (Trustee)

I. Roll Call Page

II. Approval of Agenda

III. Review and Approval of Minutes:

IV. Public Comments:

V. Guest Speakers

A. PMA Financial Network 1

VI. Treasurer’s Report: Maria Forrest

A. Projections / Cash Flow

VII. New Business A. Recommendation of Audit Proposal to the Village Board

B. Discussion of Achievement Sign Cost

C. Grant Resolution for Veterans Memorial Pavilion 24

D. Discussion: Bonus / Salary for Clerk

E. Review of Draft FY 2015 Budget 27

VIII. Unfinished Business

IX. Adjournment:

Next meeting March 3, 2014 at 6:30 PM

Integrity. Commitment. Performance.™

PMA Financial Network - Investment Services

Village of Poplar Grove Courtney Rios, Vice President PMA Financial Network, Inc. March 3, 2014

©2014 PMA Financial Network PMA Financial Network, Inc. | 2135 CityGate Lane, 7th Floor | Naperville, IL 60563 | 630.657.6400

1

Integrity. Commitment. Performance.™ 2

Investing Public Funds | Table of Contents

• Introduction to PMA 3

• Investment Platform 5

• Interest Rate Environment 8

• Cash Flow Management Program 9

2


Investing Public Funds | Introduction to PMA

• Serving the Public Sector for 30 Years – Founded as a bank credit rating agency in 1984 – Investment execution services since 1988

• Client Statistics: – Work exclusively with public funds – Over 1,450 clients in the Midwest – $12.4 billion of public assets under PMA administration

• Firm Locations – Naperville, Illinois – Main Headquarters – Milwaukee, Wisconsin – Minneapolis, Minnesota

3


Investing Public Funds | Introduction to PMA

• Investment Services – Fixed Income Investment Services – Investment Policy Review – Cash Flow Management Program – Bond Proceeds Management Program

• Bond Issuance Services

– Handled through PMA Public Finance Group – Investment Banking & Financial Advisory Services – For the 12-month period ending June 30, 2013 PMA was the number two

ranked financial advisor in Illinois* * Based on the number of issues advised upon during the time period. Source: Thomson Reuters.

Please note that past performance does not indicate future results

4


Investing Public Funds | Investment Platform

• Adherence to the “Prudent Man” Rule – Safety, Liquidity, Yield

• Quality Investment Options

– Strict compliance with Illinois State Statutes – Further restricted by client investment policy

– Has to meet PMA credit standards

• Credit & Risk Management Group – Quarterly bank credit review process – Monthly collateral monitoring (perfected collateral)

Conservative Approach to Investing

5



• Full Service Broker/Dealer Government Treasury, Government Agencies and Municipal Securities

• Variety of CD Product – 1,000+ Bank Relationships

$250k FDIC Insured Deposits (Direct & Brokered) CDARS Deposits (for over $250K)

Secured by FDIC Insurance Collateralized Deposits (for over $250K)

– Secured by Pledged Securities or Letters of Credit (LOC)

• Liquid Options Secured through a Letter of Credit (LOC) Issued by FHLB and/or Collateralized

by Pledged Securities

Fixed Term Investment Program

6



• Investment Flexibility/Convenience Invest directly to the dates you need funding Same day investment placement Can include your local institutions (consolidated reporting) PMA handles ALL investment paperwork

• PMA is compensated on a per transaction basis which includes: Collateral Monitoring Credit Monitoring Safekeeping Charges Wire Transfers Fees Administrative Costs Cash Flow Analysis Plan Investment Policy Review

• Fee is discounted from the investment at placement Net rate is always quoted (easy to compare returns)

Account Highlights

7


Current Rate Environment

• Very low interest rate environment has continued

• Banks reluctant to take deposits and collateral is difficult to obtain

• Federal Funds rate likely not to increase through calendar year 2015 – Investment rates may remain low until that time

• Focus on extending portfolio and executing fixed rate investments (when

higher than liquid option)

Investing Public Funds | Interest Rate Environment

8


Investing Public Funds | Cash Flow Management Program

• Formal organization and documentation of projected inflows/outflows

• Conservative analysis for funding liabilities

• Optimize your investment earnings – Investment strategy to extend duration of portfolio

• potentially increasing yield

• Determine excess reserves/short-term borrowing

• Administrative efficiency

Cash Flow Planning

9



Revenue Analysis

Expenditure Analysis

82%

7%

Budget by Source (Avg)

Taxes Lic, Permits, Fees Chgs for Services Other

0%

5%

10%

15%

20%

MAY JU

N

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR AP

R

Historical Average

73%

5%

Budget by Category (Avg)

Salaries & Benefits Commodities Other

5%

0%

2%

4%

6%

8%

10%

12%

MAY JU

N

JUL

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR AP

R

Historical Average

11%

11% 1%

10



Total Expenditures

Projections

Surplus/ (Deficit) Total Revenue

Cash & Investments

$5,481,802.61$5,304,034.78

$5,814,628.34$5,012,593.49

FY 2015 $7,458,996.84

$433,278.81

$519,571.09

$409,031.85

$616,063.73$5,037,400.84$874,596.76

$544,938.89

$4,878,341.93$4,428,004.29$4,411,730.92$5,392,426.51

$640,871.08

FY 2014

$427,716.55$849,274.16$511,270.97

$491,042.40$398,936.52Apr-14

Mar-14

$7,312,742.00

$421,334.85 $545,607.28

Nov-14

Jul-14Aug-14Sep-14Oct-14

$611,046.64$741,857.58

$1,346,973.74

$417,423.02

$484,603.05$5,259,086.82

$485,598.73May-14Jun-14

Dec-13

$714,613.49

$489,225.79

$474,769.04$1,466,294.32

$4,961,896.36

($491,967.00)($0.00)

$7,804,709.00$7,458,996.84

Jan-14Feb-14

Monthly Projections Cash Balance$5,383,359.25

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

Jan

-12

Ju

l-12

Jan

-13

Ju

l-13

Jan

-14

Ju

l-14

Jan

-15

Ju

l-15

Jan

-16

Millions

Actual Projection

11



Taxes Other Payables Payroll Other

$523,267-

$0 $0 $0 $0 $0 $0 $0 $0 $523,267-

$0 $0 $44,021 $71,238 $0 $0 $300,000 $0 $796,051-

$0 $0 $0 $0 $0 $0 $0 $0 $796,051-

$0 $0 $0 $0 $273,374 $0 $0 $0 $522,676-

$0 $0 $0 $0 $0 $0 $0 $0 $522,676-

$0 $0 $0 $0 $0 $0 $0 $0 $522,676-

$1,000,000 $0 $0 $0 $0 $0 $0 $1,000,000 $522,676-

$0 $0 $0 $0 $0 $0 $0 $0 $522,676-

$0 $0 $344,021 $71,238 $0 $0 $0 $0 $795,460-

$0 $0 $0 $0 $0 $0 $500,000 $350,000 $945,460-

$0 $0 $0 $0 $0 $0 $0 $0 $945,460-

$0 $0 $0 $0 $273,374 $0 $0 $0 $672,086-

$0 $0 $0 $0 $0 $0 $0 $0 $672,086-

$0 $0 $616,244 $0 $0 $0 $0 $500,000 $788,329-

$0 $0 $0 $0 $0 $0 $0 $0 $0-

$1,000,000 $1,004,286 $142,475 $546,749 $800,000 $1,850,000 $788,329- - -

30 Mon

10

11

12

24

25

17

18

19

13

16

4

Cash Flow Schedule - June 2014

Date DayRevenues

Wed

Money Mkt Funds

Opening Balance

InvestmentsMaturitiesExpenditures

Tue3

Tue

Wed

Fri

Tue

Wed

Thu

27

Fri

Mon

Tue

Wed

Thu

Total

12



13



ID Maturity # of Investment# Proposed Actual Date Days Proposed Actual Type8 03-Feb-14 21-May-14 107 $500,000

9 03-Feb-14 04-Jun-14 121 $300,000

10 03-Feb-14 07-Jul-14 154 $1,500,000

11 03-Feb-14 16-Jul-14 163 $250,000

12 03-Feb-14 23-Jul-14 170 $300,000

13 03-Feb-14 06-Aug-14 184 $200,000

14 03-Feb-14 03-Sep-14 212 $400,000

15 03-Feb-14 01-Oct-14 240 $250,000

16 03-Feb-14 08-Oct-14 247 $400,000

Proposed InvestmentsInvestment Date Amount

14


Disclaimer

The information contained herein is solely intended to suggest/discuss potentially applicable financing applications and is not intended to be a specific buy sell recommendation, nor is it an official confirmation of terms. Any terms discussed herein are preliminary until confirmed in a definitive written agreement.

The analysis or information presented herein is based upon hypothetical projections and/or past performance that have certain limitations. No representation is made that it is accurate or complete or that any results indicated will be achieved. In no way is past performance indicative of future results. Changes to any prices, levels, or assumptions contained herein may have a material impact on results. Any estimates or assumptions contained herein represent our best judgment as of the date indicated and are subject to change without notice. Examples are merely representative and are not meant to be all-inclusive.

The information set forth herein was gathered from sources which we believe, but do not guarantee, to be accurate. Neither the information, nor any options expressed, constitute a solicitation by us for purposes of sale or purchase of any securities or commodities. Investment/financing decisions by market participants should not be based on this information.

You should consider certain economic risks (and other legal, tax, and accounting consequences) prior to entering into any type of transaction with PMA Securities, Inc. or PMA Financial Network, Inc. It is imperative that any prospective client perform its own research and due diligence, independent of us or our affiliates, to determine suitability of the proposed transaction with respect to the aforementioned potential economic risks and legal, tax, and accounting consequences. Our analyses are not and do not purport to be appraisals of the assets, or business of the District or any other entity. PMA makes no representations as to the actual value which may be received in connection with a transaction nor the legal, tax, or accounting effects of consummating a transaction. PMA cannot be relied upon to provide legal, tax, or accounting advice. You should seek out independent and qualified legal, tax, and accounting advice from outside sources.

If posted on a webpage, this information has been prepared for informational and educational purposes and does not constitute a solicitation to purchase or sell securities, which may be done only after client suitability is reviewed and determined. Services offered by PMA Securities, Inc. and this registered representative presenter, in particular, are available only in the following state: IL. This information is not an advertisement of services available in any state other than those listed above.

Disclaimer

15

About PMA FinAnciAl network, inc. leading the public sector with sound investment solutions

Fundamental Approach to long-term SuccessFor a quarter-century, government entities have turned to PMA Financial Network, Inc. and PMA Securities, Inc. (collectively “PMA”) as a trusted partner and integral component of their long-term financial success. With billions of dollars invested annually, PMA provides over 1,300 clients with a diverse lineup of customized financial solutions through a team of experienced professionals and some of the most innovative technology available.

PMA has earned a reputation in the public sector for developing financial solutions that work. In fact, since 2009 PMA Securities, Inc. has been the number one ranked financial advisor for K-12 districts in Illinois.1

1 Based on the par amount advised upon for K-12 districts for the 12-month periods ending June 30, 2009 through 2012. Does not include debt issued by the Chicago Board of Education or State of Illinois. Source: Thomson Financial Services and emma.msrb.org. Note that past performance does not indicate future results.

the Power of the networkRelationships with experienced institutional trading partners and an extensive network of more than 1,800 local and national banks enable PMA to provide its clients statute-compliant fixed income opportunities, including FDIC CDs, Collateralized CDs, U.S. Government Agency Investments and U.S. T-Bills and Notes. This network inherently provides PMA clients a competitive advantage because it allows for an innovative bidding process that helps secure the best possible rates on our clients’ investments, saving a great deal of time and energy.

Fixed rate investmentsInstitutional relationships with some of Wall Street’s most experienced professionals and an extensive local and national bank network enable PMA to provide its clients world-class fixed income opportunities. PMA offers clients direct access to multiple durations of Certificates of Deposit and government securities.

PMA FinAnciAl network, inc.

PMA Financial Network, Inc. is a full service public finance company with over 25 years of experience providing clients long-term financial solutions that work.

• Competitive investment execution and statute and policy allowable investments

• Cash flow management

• Bond proceeds management

• Financial planning

• Bank credit analysis

• Online trading and reporting

• Investment banking and financial advisory services

PMA SecuritieS, inc.

PMA Securities, Inc. provides fixed income institutional brokerage, debt issuance services, registered money fund products, and is the distributor for several intergovernmental investment pools.

• Full service investment banking

• Competitive bond sales

• Negotiated bond sales

• Private placements

• Long-range financial analysis

• Project finance services

Fixed rAte inveStMentS

• FDIC CDs

• Collateralized CDs

• U.S. Government Agency Investments

• U.S. T-Bills and Notes 16

About PMA FinAnciAl network, inc.

Government securities are offered through PMA Securities Inc., a registered member of the SEC, FINRA and SIPC. All other products and services are provided by PMA Financial Network, Inc. Services offered through PMA Securities, Inc. are available in CA, IL, MI, MN, OK, SD and WI. Investment banking and institutional brokerage services are offered through PMA Securities, Inc.This brochure is not an advertisement of services available in any state other than those listed above, has been prepared for informational and educational purposes and does not constitute a solicitation to purchase or sell securities, which may be done only after client suitability is reviewed and determined. All investments mentioned herein contain varying levels of risk, and may not be suitable for every investor.Prudent Man Advisors, Inc. is a Registered Investment Advisor. Additional information on insurance products is available upon request. PMA Financial Network, Inc., PMA Securities, Inc., Prudent Man Advisors, Inc. and its employees do not offer tax or legal advice. Individuals and organizations should consult their personal tax and/or legal advisors before making any tax- or legal-related investment decisions.

© 2013 PMA Financial Network, Inc.

Integrity. Commitment. Performance.tm800.783.4273 | www.pmanetwork.com

Fixed rate opportunitiesFIxed Rate Investment BId PRoCessPMA’s investment bidding services are set in place to provide its clients the opportunity to secure the best possible rates on their investments. Additionally, PMA obtains these rates by contacting multiple banks, saving its clients time and energy. For added convenience, clients receive a single consolidated monthly report encompassing all of the client’s Fixed Rate Account investments and local government investment pool activity.

deBt IssuanCe PRoCessPMA’s professionals are experienced and knowledgeable in municipal finance, debt issuance, cash management and investing, sales and trading and underwriting. PMA Securities, Inc. is a debt advisor for school districts and municipalities, integrating debt issuance with its clients’ operating objectives. Our knowledgeable staff has experience in school management, municipal government, business and accounting. PMA’s Public Finance Team utilizes this experience to perform a number of services for our clients, ranging from financial analysis and capital planning to facilitating the debt issuance process.

Cash Flow analysIsThere is more to money management than simply shopping for investments. An accurate cash flow plan allows a client to intelligently build an investment schedule that capitalizes on the yield curve benefits of longer-term investing. PMA’s cash flow analysis helps a client ensure that all liabilities are met with a maturity, invest longer to take advantage of higher rates, plan for cash shortfalls, identify long-term investment potential and maximize interest income. PMA’s cash flow analysis is free of charge for its investment clients.

Bond PRoCeeds management PRogRamPMA’s Bond Proceeds Management Program provides the ability to reap significant benefits in the critical areas of investment, arbitrage and reporting. Specifically, this program helps a client establish a reliable and sufficient flow of funds, maximize earnings through an asset-liability matching investment schedule, adequately cover expenses, comply with all applicable IRS arbitrage regulations and save administrative time. Additionally, each client will have a single contact for all of its investment needs.

Fixed rAte inveStMent Bid ProceSS

• Prior to the investment date, PMA will contact government-identified local banks to solicit rates.

• PMA will solicit top State rates for a client’s investments.

• Client makes the final decision on placement of investments.

• PMA will handle all paperwork related to investments.

• PMA provides one monthly investment statement for all of a client’s investments.

deBt iSSuAnce ServiceS

• Financial analysis of proposed projects/needs.

• Traditional negotiated or competitive investment banking services.

• Debt structuring and issuance.

• Review of available debt capacity and long range debt management.

• Facilitation of debt issuance process.

• Insurance and rating agency presentation.

• Levy assistance.

• Ongoing client support.

cASh Flow AnAlySiS

• Ensure all liabilities are met with a maturity.

• Invest longer to take advantage of higher rates.

• Plan for cash shortfalls.

• Identify long-term investment potential.

• Maximize interest income.

Bond ProceedS MAnAgeMent

• Reap significant benefits in investment, arbitrage and reporting.

• Establish a reliable flow of funds.

• Maximize earnings through an asset-liability matching investment schedule.

• Help comply with all applicable IRS arbitrage regulations.

17

cASh Flow MAnAgeMentYour money working sooner and longer

gAin a complete and accurate cash

flow picture to put your money to work sooner

and longer.

overviewMoney management goes beyond picking investment products. We believe improving our clients’ overall investment plan is the smartest way to impact and improve returns. At PMA, this process begins with a thorough understanding of our clients’ cash flow and is carried out through PMA’s Cash Flow Management Program, which analyzes large fields of data, draws reliable conclusions and capitalizes on the newfound insight.

PMA’s Cash Flow Management Program gives public entities a complete and accurate picture of their cash flow so they can put their money to work sooner and longer.

the Power of a good PlanThe result of PMA’s comprehensive historical analysis of a client’s financial statements is a daily cash flow plan. This plan maps out such items as payroll and accounts payable dates and amounts, and debt schedules, to name a few. PMA then builds an optimized investment schedule that:

1. covers expenses

2. extends maturity lengths

3. captures the yield curve benefits of long-term investing

Added Value of competitive biddingNot only does PMA put a public entity’s money to work for the long-term, its competitive bid program seeks to secure the best rate possible. This is accomplished by competitively bidding investments across our expansive network of banks and securities dealers on behalf of each public entity. A single call to PMA gives investors efficient access to a robust institutional network of financial institutions.

BeneFitS

• Provides the potential for optimized interest income.

• Helps achieve optimal pricing on investments through PMA’s competitive bidding process.

• Increases efficiency of investment and cash flow process.

• Seeks to: - Keep assets invested 100% of the time.

- Provide greater accuracy and timeliness in funding expenses.

- Allow for increased precision in financial planning.

- Become a valuable tool for anticipation borrowing.

- Increase accuracy in cash balance projections, letting your invest confidently knowing your liquidity needs are covered.

• Provides continuity.

• Serves as a communication tool with your community.

18

cASh Flow MAnAgeMent




the ProcessPMA’s Cash Flow Management Program gives finance officers the ability to steer things from the top while leaving the analysis and time consuming details to a professional portfolio advisor. This analysis is based on proprietary methods that review historical data, determine trends and project future needs.

1. hIstoRICal data analysIs PMA’s detailed investigation of a municipality’s historic cash flow data ultimately provides a complete and reliable picture from which investment decisions are based. This historical analysis includes: •Reviewingthree-yearsofcash-basedhistoricalmonthlydatabyfund. •Determiningtrends. •Isolatinganomalies. •Incorporatingspecificinformation(e.g.,A/Pcycle,payrollcycle,summer payroll, debt schedules, calendar, etc. to ensure the plan is as accurate as possible.

2. daIly Cash Flow ConstRuCtIon Once the historical data analysis has been performed, monthly revenue and expenditure (r/e) percentages are applied to your current fiscal year budget to project monthly r/e figures for the current and future years. Finally, specific dates and amounts (e.g., accounts payable, debt schedules, property tax dates) are identified, placed on the calendar and included in the final daily cash flow plan.

3. Investment sChedule CReatIon Once the cash flow plan has been constructed, PMA builds an investment schedule (right) that optimizes your municipality’s returns beginning with the next fiscal year. This investment schedule allows for efficient execution of investments and helps extend maturity lengths in order to capitalize on the longer end of the yield curve.

4. ComPetItIve BIddIng PMA’s portfolio advisors work closely with a municipality to competitively bid investments across PMA’s extensive network of over 1,800 financial institutions. This ensures that you obtain the most competitive rates in the country without the hassle of shopping around.

cASh Flow illuStrAtionS

Constructing your daily cash flow planOnce historical data has been analyzed, monthly rev/exp percentages can be applied toyour current fiscal year (FY)budget to project monthly rev/expnumbers for the current year andbeyond. Within each month, payroll dates and amounts, A/P dates and amounts, debtschedules, state aid payment dates and amounts, property taxdates and amounts are identifiedto construct a DAILY CASHFLOW PLAN.

What are the benefits of the program?• Gives you the potential for

greater interest income

• Saves you time and helps you achieve optimal pricing oninvestments through PMA’s competitive bidding process

• Increases the efficiency of yourinvestment and cash flow process

• Keeps your assets invested 100% of the time

• Provides greater accuracy andtimeliness in funding expenses

• Allows for greater precision infinancial planning

• Becomes a valuable tool foranticipation borrowing

• Increases accuracy in cash balance projections – letting youinvest confidently knowing yourliquidity needs are covered

• Provides continuity even duringchanges in staffing

• Serves as a communication tool with your community, documenting your district’s proficient cash managementefforts

A closer look at the processAnalyzing historical dataStarting with a detailed investigation of your district’s historic cash flow data, PMA givesyou a complete and reliable picture on which to base futureinvestment decisions. At this phase we will: • Analyze three years of cash-based

historical data by fund, by month

• Determine monthly patterns and trends

• Isolate one-time anomalies notindicative of the year’s monthlynumber

• Incorporate district specificinformation such as A/P cycle,payroll cycle, summer payroll,debt schedules, school calendar,etc. to ensure the plan is as accurate as possible

f u n d p r o j e c t i o n s

Targeted Liquidity Level:

Long-Term Investment Potential: (1-2 Years)CurrentAdditionalTotal Proposed

$0.00$3,750,000.00

$3,750,000.00

$700,000 - $800,000

Total Dollar Balances For All Funds

($5)

$0

$5

$10

$15

$20

$25

$30

$35

Apr May Jul Aug Oct Dec Jan Mar May Jun Aug Sep Nov Jan Feb Apr Jun Jul Sep Oct Dec

Millions

$15.5mm - Oct

$8.2mm - Oct

($900k) - Oct

Yiel

d %

's

30 90 150 210 270 330 390 450 510

Government Security Insured Certificate of Deposit

The average life of our proposed investment schedule allows for a portfolio yield that benefits from higher long-term rates.

Money Market Funds

Optimized Investment Portfolio

0%

5%

10%

15%

20%

25%

JUL

SEP

NO

V

JAN

MA

R

MA

Y

Historical AverageRevenue by Sources

2 2

7%

89%

Local State Federal Other

Monthly Projections Fund Balance

Aug-05

Jul-05

May-05

Jun-05

Total Expenditures

($6,394,989.00)

($6,947,407.10)

Sep-05

Oct-05

Apr-05

Total Revenue

$4,621,061.72

Surplus/ (Deficit)

$2,440,807.62

$556,171.86

$5,362,189.08

$651,987.38

$3,760,767.63

$79,378.47

$5,436,697.72

FY 2005

Mar-06

Nov-05

Dec-05

Jan-06

Feb-06

$2,186,525.17

$653,242.10

$2,605,757.52

$2,563,075.43

$1,291,441.19

$3,415,047.82

$2,347,935.76$672,005.68

$939,672.56

($4,371,650.88)

($4,690,931.98)

($1,017,131.81)

($558,820.62)

($2,469,908.67)

($5,328,784.62)

($2,572,353.06)

($1,742,790.52)

($436,602.03)

$6,164,796.25

$2,706,092.74

$4,084,082.12

$2,490,996.08

$2,937,886.46

$2,461,601.97

$4,841,843.76

$2,618,605.36

$1,155,413.48

$1,455,221.75

FY 2006

$32,859,348.00

$34,338,018.66

$26,464,359.00

$27,390,611.57

0%2%4%6%8%

10%12%14%16%

JUL

SEP

NO

V

JAN

MA

R

MA

Y

Historical Average Expenditures by Category

64%

16%

5

52 8%

Salaries Benefits Purchased ServicesSupplies Capital Outlay Other

r e v e n u e a n a l y s i s e x p e n d i t u r e a n a l y s i s

Fiscal Year 2006July Beginning Balances Revenues Expenditures Ending Balances Educational Fund $8,016,704.70 $172,983.01 $120,054.98 $8,069,632.73Building Fund $1,433,434.10 $18,613.37 $38,075.75 $1,413,971.72Transportation Fund $634,126.34 $7,198.91 $40,576.27 $600,748.98IMRF Fund ($13,520.71) $3,316.04 $10,424.89 ($20,629.56)Working Cash Fund $0.00 $ 0.00 $0.00 $0.00Bond & Interest Fund $0.00 $ 0.00 $0.00 $0.00Life Safety Fund $0.00 $ 0.00 $0.00 $0.00Site & Construction Fund $0.00 $ 0.00 $0.00 $0.00

Total $202,111.33 $209,131.892.04% 2.34%

August Beginning Balances Revenues Expenditures Ending Balances Educational Fund $8,069,632.73 $101,324.43 $367,139.83 $7,803,817.33Building Fund $1,413,971.72 $9,832.02 $162,168.79 $1,261,634.95Transportation Fund $600,748.98 $3,089.87 $15,328.41 $588,510.44IMRF Fund ($20,629.56) $1,290.91 $10,152.66 ($29,491.31)Working Cash Fund $0.00 $ 0.00 $0.00 $0.00Bond & Interest Fund $0.00 $0.00 $0.00 $0.00Life Safety Fund $0.00 $0.00 $0.00 $0.00Site & Construction Fund $0.00 $0.00 $0.00 $0.00

Total $115,537.23 $554,789.691.17% 6.19%

h i s t o r i c a l a n a l y s i s

Fund Balance

($25)

($20)

($15)

($10)

($5)

$0

$5

$10

$15

$20

$25

Jul-

01

Nov

-01

Mar

-02

Jul-

02

Nov

-02

Mar

-03

Jul-

03

Nov

-03

Mar

-04

Jul-

04

Nov

-04

Mar

-05

Jul-

05

Nov

-05

Mar

-06

Jul-

06

Nov

-06

Mar

-07

Jul-

07

Nov

-07

Millions

Actual Projection

D e r i v i n g m o n t h l y r e v e n u e a n d e x p e n s e p r o j e c t i o n sC o m p l e t e u n d e r s t a n d i n g o f d a i l y c a s h b a l a n c e s a l l o w s f o r o p t i m a l i n v e s t m e n t r e t u r n s

PMA-CashFlow_v201db.qxd 9/25/06 3:13 PM Page 3





















$0.00$3,750,000.00

$3,750,000.00

$700,000 - $800,000


($5)

$0

$5

$10

$15

$20

$25

$30

$35


Millions

$15.5mm - Oct

$8.2mm - Oct

($900k) - Oct

Yiel

d %

's

30 90 150 210 270 330 390 450 510



Money Market Funds


0%

5%

10%

15%

20%

25%

JUL

SEP

NO

V

JAN

MA

R

MA

Y


2 2

7%

89%



Aug-05

Jul-05

May-05

Jun-05

Total Expenditures

($6,394,989.00)

($6,947,407.10)

Sep-05

Oct-05

Apr-05

Total Revenue

$4,621,061.72

Surplus/ (Deficit)

$2,440,807.62

$556,171.86

$5,362,189.08

$651,987.38

$3,760,767.63

$79,378.47

$5,436,697.72

FY 2005

Mar-06

Nov-05

Dec-05

Jan-06

Feb-06

$2,186,525.17

$653,242.10

$2,605,757.52

$2,563,075.43

$1,291,441.19

$3,415,047.82

$2,347,935.76$672,005.68

$939,672.56

($4,371,650.88)

($4,690,931.98)

($1,017,131.81)

($558,820.62)

($2,469,908.67)

($5,328,784.62)

($2,572,353.06)

($1,742,790.52)

($436,602.03)

$6,164,796.25

$2,706,092.74

$4,084,082.12

$2,490,996.08

$2,937,886.46

$2,461,601.97

$4,841,843.76

$2,618,605.36

$1,155,413.48

$1,455,221.75

FY 2006

$32,859,348.00

$34,338,018.66

$26,464,359.00

$27,390,611.57

0%2%4%6%8%

10%12%14%16%

JUL

SEP

NO

V

JAN

MA

R

MA

Y


64%

16%

5

52 8%




Total $202,111.33 $209,131.892.04% 2.34%


Total $115,537.23 $554,789.691.17% 6.19%


Fund Balance

($25)

($20)

($15)

($10)

($5)

$0

$5

$10

$15

$20

$25

Jul-

01

Nov

-01

Mar

-02

Jul-

02

Nov

-02

Mar

-03

Jul-

03

Nov

-03

Mar

-04

Jul-

04

Nov

-04

Mar

-05

Jul-

05

Nov

-05

Mar

-06

Jul-

06

Nov

-06

Mar

-07

Jul-

07

Nov

-07

Millions

Actual Projection























$0.00$3,750,000.00

$3,750,000.00

$700,000 - $800,000


($5)

$0

$5

$10

$15

$20

$25

$30

$35


Millions

$15.5mm - Oct

$8.2mm - Oct

($900k) - Oct

Yiel

d %

's

30 90 150 210 270 330 390 450 510



Money Market Funds


0%

5%

10%

15%

20%

25%

JUL

SEP

NO

V

JAN

MA

R

MA

Y


2 2

7%

89%



Aug-05

Jul-05

May-05

Jun-05

Total Expenditures

($6,394,989.00)

($6,947,407.10)

Sep-05

Oct-05

Apr-05

Total Revenue

$4,621,061.72

Surplus/ (Deficit)

$2,440,807.62

$556,171.86

$5,362,189.08

$651,987.38

$3,760,767.63

$79,378.47

$5,436,697.72

FY 2005

Mar-06

Nov-05

Dec-05

Jan-06

Feb-06

$2,186,525.17

$653,242.10

$2,605,757.52

$2,563,075.43

$1,291,441.19

$3,415,047.82

$2,347,935.76$672,005.68

$939,672.56

($4,371,650.88)

($4,690,931.98)

($1,017,131.81)

($558,820.62)

($2,469,908.67)

($5,328,784.62)

($2,572,353.06)

($1,742,790.52)

($436,602.03)

$6,164,796.25

$2,706,092.74

$4,084,082.12

$2,490,996.08

$2,937,886.46

$2,461,601.97

$4,841,843.76

$2,618,605.36

$1,155,413.48

$1,455,221.75

FY 2006

$32,859,348.00

$34,338,018.66

$26,464,359.00

$27,390,611.57

0%2%4%6%8%

10%12%14%16%

JUL

SEP

NO

V

JAN

MA

R

MA

Y


64%

16%

5

52 8%




Total $202,111.33 $209,131.892.04% 2.34%


Total $115,537.23 $554,789.691.17% 6.19%


Fund Balance

($25)

($20)

($15)

($10)

($5)

$0

$5

$10

$15

$20

$25

Jul-

01

Nov

-01

Mar

-02

Jul-

02

Nov

-02

Mar

-03

Jul-

03

Nov

-03

Mar

-04

Jul-

04

Nov

-04

Mar

-05

Jul-

05

Nov

-05

Mar

-06

Jul-

06

Nov

-06

Mar

-07

Jul-

07

Nov

-07

Millions

Actual Projection























$0.00$3,750,000.00

$3,750,000.00

$700,000 - $800,000


($5)

$0

$5

$10

$15

$20

$25

$30

$35


Millions

$15.5mm - Oct

$8.2mm - Oct

($900k) - Oct

Yiel

d %

's

30 90 150 210 270 330 390 450 510



Money Market Funds


0%

5%

10%

15%

20%

25%

JUL

SEP

NO

V

JAN

MA

R

MA

Y


2 2

7%

89%



Aug-05

Jul-05

May-05

Jun-05

Total Expenditures

($6,394,989.00)

($6,947,407.10)

Sep-05

Oct-05

Apr-05

Total Revenue

$4,621,061.72

Surplus/ (Deficit)

$2,440,807.62

$556,171.86

$5,362,189.08

$651,987.38

$3,760,767.63

$79,378.47

$5,436,697.72

FY 2005

Mar-06

Nov-05

Dec-05

Jan-06

Feb-06

$2,186,525.17

$653,242.10

$2,605,757.52

$2,563,075.43

$1,291,441.19

$3,415,047.82

$2,347,935.76$672,005.68

$939,672.56

($4,371,650.88)

($4,690,931.98)

($1,017,131.81)

($558,820.62)

($2,469,908.67)

($5,328,784.62)

($2,572,353.06)

($1,742,790.52)

($436,602.03)

$6,164,796.25

$2,706,092.74

$4,084,082.12

$2,490,996.08

$2,937,886.46

$2,461,601.97

$4,841,843.76

$2,618,605.36

$1,155,413.48

$1,455,221.75

FY 2006

$32,859,348.00

$34,338,018.66

$26,464,359.00

$27,390,611.57

0%2%4%6%8%

10%12%14%16%

JUL

SEP

NO

V

JAN

MA

R

MA

Y


64%

16%

5

52 8%




Total $202,111.33 $209,131.892.04% 2.34%


Total $115,537.23 $554,789.691.17% 6.19%


Fund Balance

($25)

($20)

($15)

($10)

($5)

$0

$5

$10

$15

$20

$25

Jul-

01

Nov

-01

Mar

-02

Jul-

02

Nov

-02

Mar

-03

Jul-

03

Nov

-03

Mar

-04

Jul-

04

Nov

-04

Mar

-05

Jul-

05

Nov

-05

Mar

-06

Jul-

06

Nov

-06

Mar

-07

Jul-

07

Nov

-07

Millions

Actual Projection



long-terM inveStMent PotentiAl

oPtiMizAtion

revenue AnAlySiS

exPenditure AnAlySiS

Giving you a complete andaccurate picture of your district’s cash flow so youcan put your money to worksooner…and longer.

There is more to money manage-ment than shopping for invest-ments. Improving your overallinvestment plan is the smartest way to impact your returns. Thisprocess begins with a thoroughunderstanding of your district’scash flow rhythms. Unfortunately,such understanding doesn’t comewithout a price. To draw usefuland reliable conclusions from sucha large field of data, it takes timeand a good deal of detail work. So does drafting an investmentplan that will capitalize on yournewfound insight.

Let the professionals at PMAdo the work for youAs a business manager, you wantto keep your focus on the big picture, not get bogged down in the details. That’s why we created our Cash FlowManagement Program. It allowsyou to steer things from the topwhile leaving the analysis and busywork to one of our professionalportfolio advisors. The time savings are invaluable. The financial benefits are lasting.

The power of a good planThe product of our comprehensivehistorical analysis is a DAILY CASHFLOW PLAN. For each month we map out for you things like payroll dates and amounts, debtschedules, state aid payments, andmore. Then, with plan in hand, we build an optimal investmentschedule for your district –

one that not only covers expenses,but also extends maturity lengthsand captures the yield curve benefits of longer-term investing.

The added value of competitive biddingNot only will PMA put your money to work for you longer, we also help you secure the bestrate possible. PMA staff will competitively bid investments onyour behalf across our expansivenetwork of banks and securitiesdealers. You get the power of thenetwork with a single call.

Making it easy to implementWe know that the best plan in theworld is useless if it doesn’t getimplemented. That’s why we makeit easy for you and your staff whenit comes time to execute. It’s justanother variation of our commontheme: we do the work, you reapthe benefits.

MaySun Mon Tues Wed Thurs Fri Sat

1 2 3

Balance: $754,470 Balance: $754,470 Balance: $754,470

4 5 6 7 8 9 10

Balance: $754,470 Balance: $754,470 Balance: $754,470 Balance: $754,470 Beg. Bal: $754,470Revenue: + $120,667Payroll: - $1,107,750A/P: - $520,667Inv. Mat.: + $1,500,000

End. Bal.: = $746,720

Balance: $746,720 Balance: $746,720

11 12 13 14 15 16 17

Balance: $746,720 Beg. Bal: $746,720State Aid: + $36,939

End. Bal.: = $783,659

Balance: $783,659 Balance: $783,659 Balance: $783,659 Balance: $783,659 Balance: $783,659

18 19 20 21 22 23 24

Balance: $783,659 Balance: $783,659 Balance: $783,659 Balance: $783,659 Beg. Bal: $783,659Revenue: + $120,667Payroll: - $1,107,750A/P: - $520,667Inv. Mat.: + $1,500,000

End. Bal.: = $775,909

Balance: $775,909 Balance: $775,909

25 26 - Memorial Day 27 28 29 30 31

Balance: $775,909 Balance: $775,909 Balance: $775,909 Balance: $775,909 Balance: $775,909 Beg. Bal: $775,909Revenue: + $543,671B&I

: - $108,061Inv. Mat.: + $100,000Inv. Purch: - $600,000

End. Bal.: = $711,519

Balance: $711,519

27545 Diehl RoadWarrenville, IL 60555Ph 630.393.9494Fx 630.393.9595 Cultivating the fruits of wisdom©2006 PMA Financial Network, Inc. All Rights Reserved.

Constructing your investment planHaving constructed an accurate cash flow plan we cannow build an investment schedulethat optimizes your district’sreturns over the next FY andbeyond. From the day revenuesare received, the plan allows for efficient execution of investments, with the goal ofextending maturity lengths andcapturing the yield curve benefitsof longer-term investing.

Here also is where PMA’s extensivebank and dealer network comesinto play. Your portfolio advisorwill competitively bid investmentson your behalf across our entirenetwork. You get the most competitive rates in the countrywithout the hassle of “shoppingaround.”

In our experience, a professional and easy to implement planis more likely to get executed, making your dollars work harderfor you while allowing your staff to focus on other business.That’s what we call a solid value.

d a i l y c a s h f l o w p l a n including revenues, expenses, and investments

Cash Flow Management Program


19

bond ProceedS MAnAgeMentestablish a reliable and sufficient flow of funds and optimize earnings

bringing your project to life with a

comprehensive arbitrage management program

for bond proceeds.

overviewPMA’s Bond Proceeds Management Program (PMA BPM) is a comprehensive service that helps you establish a reliable and sufficient flow of funds, optimize your investment earning and adequately cover projected expenses. Additionally, PMA BPM helps public entities reap significant benefits in the critical areas of investment, arbitrage and reporting.

Tax exempt debt issuers are subject to a long list of Internal Revenue Service (IRS) requirements that dictate how and when they can use their bond proceeds. Through PMA BPM these obligations are fulfilled with minimal hassle.

investment, Arbitrage and reportingWith PMA BPM, public entities can reap significant benefits in the critical areas of investment, arbitrage and reporting.

1. PMA competitively bids client investments across its expansive network of banks and dealers to obtain optimal pricing on client investments.

2. PMA’s local bank participation program allows local institutions to participate in the process if desired.

PMA helps bring a public entity’s construction project to life through a comprehensive investment and arbitrage management program that maximizes interest earnings while complying with arbitrage and IRS regulations, existing policies, as well as state and federal statutes.

PMA’s specialized monthly reports provides: •reliableinterestearningsprojections. •arbitragespenddownstatus. •spendingexceptiontests. •monthlyupdatesonpotentialarbitragepayments. •comprehensiveportfolioreporting.

BeneFitS

• Establish a scheduled flow of funds.

• Optimize investment opportunities.

• Cover projected expenses.

• Improve compliance.

• Create administrative efficiency.

• Competitively bid client investments.

• Offers local bank participation option.

• Provides specialized monthly reporting.

• Establishes reliable interest earnings projections.

• Calculates arbitrage spend down status.

• Provides monthly updates on potential arbitrage payments.

• Assists in complying with existing policies, federal and state statutes, district policy and arbitrage and IRS regulations.

• Coordinates formal arbitrage calculation for presentation to the IRS, if necessary.

20

bond ProceedS MAnAgeMent




the Process1. PRe-exeCutIon Before the bond closing date, PMA analyzes all relevant aspects of a municipality’s project and bond issue process to an optimal investment strategy. Understanding an entity’s cash flow and drafting an accurate draw schedule is critical, allowing the entity to extend the maturity of its investments in conjunction with projected expenditures. PMA also identifies potential arbitrage issues and concerns in an effort to determine a disbursement process that best meets the client’s needs. Some of the preliminary considerations include:

•Willthemunicipalityqualifyforaspend-downexceptionandthethree-year temporary period?

•Whenwilltheprojectbestartedandcompleted?

•Whenwillthebondsclose?

•Aremultiplefundingsourcesavailable?

•Whatistheentity’sinvestmentpolicy?

2. exeCutIon In this stage, PMA implements the approved plan. PMA’s extensive network of banks and dealers allows for highly competitive bidding of your investments. PMA has a network of:

•>1,800banks.

•>20securitiesdealers.

•>10municipalsecuritiesdealers.

3. ongoIng management Each month, PMA facilitates disbursement of proceeds to fund current expenses and furnishes reports on investments, arbitrage, and bookkeeping. PMA continually monitors an entity’s investments and project status to determine if we can enhance interest earnings along the way.

4. PRojeCt ComPletIon At the end of a project, PMA prepares final documentation and reporting. If necessary, PMA also provides a municipality with a final arbitrage calculation for presentation to the IRS.

Bond ProceedS illuStrAtionS

Here are a few of the preliminaryissues we consider:• Will the district qualify for a

spend-down exception and the 3-year temporary period?

• When will the project be startedand completed?

• When will the bonds close?

• Are multiple funding sourcesavailable?

• What is the district’s investmentpolicy?

Stage 2: ExecutionHere we implement your district-approved plan. Our extensive network of banks and dealersallows for highly competitive bidding of your investments.PMA has a network of:• more than 500 bank

relationships

• more than 20 securities dealer relationships

• more than 20 corporate securities dealer relationships

• numerous municipal securitiesdealer relationships

Stage 3: Ongoing managementEach month, we facilitate disbursement of proceeds to fund current expenses and furnishyou with reports on investments,arbitrage, and bookkeeping. We continually monitor yourinvestments and project status todetermine if we can enhance yourinterest earnings along the way.

Stage 4: Project completionAt the end of your project, PMAprepares final documentation and reporting. If necessary, we also provide you with a final arbitrage calculation for presentation to the IRS.

How else do you benefit?With PMA’s Bond ProceedsManagement Program, you reapsignificant benefits in the criticalareas of investment, arbitrage, andreporting.• We competitively bid investments

on your behalf across our expansive network of banks,dealers, and investment agreement providers, helpingyou obtain optimal pricing. Plus,local bank participation is always an option.

• Our specialized monthly reportsprovide you with reliable interestprojections, arbitrage spend-down status, potential arbitragepayments, and comprehensiveportfolio reporting.

• We make our extensive experience in working with public funds and bond proceedsmanagement available to youthroughout your entire project.

• We help ensure compliance withdistrict policy and state statutes.

• Our accounting summaryreports give you a single numberto book each month, greatly simplifying your bookkeepingefforts.

• We coordinate a formal arbitrage calculation for presentation to the IRS,if necessary.

• We keep a continual eye out forany investment opportunitiescreated by changes in your project or interest rate markets,enabling you to capitalize onthem quickly.

What does the process involve?Stage 1: Pre-executionBefore your bonds close, we analyze all relevant aspects of yourproject and bond issue process todetermine an optimal investmentstrategy. Understanding your cashflow and drafting an accurate drawschedule is critical, allowing you to extend the maturity of yourinvestments in conjunction withprojected expenditures. We alsoidentify potential arbitrage issuesand concerns and choose a disbursement process that bestmeets your needs. Yi

eld

%'s

30 90 150 210 270 330 390 450 510




Money Market Funds

Arbitrage Rebate: The proceeds are subject to arbitrage rebate; however, the district is currently investing below the arbitrage yield and currently does not expect to pay arbitrage.

Portfolio Arbitrage Status

Yield Restriction: The bond proceeds currently fall under the three year temporary period and are therefore not yield restricted.

Optimal

Date

Bond Proceeds /

Project Revenue

Estimated Monthly Project Expense

Actual Monthly Project Expense

Actual Monthly Project Expense Deviation

3/13/06 $11,200,000.00 $0.00 $0.003/13/06 $254,658.18 $254,658.18 $35,000.00 $219,658.183/22/06 $45,341.82 $45,341.82 $100,000.00 ($54,658.18)4/19/06 $159,953.98 $159,953.98 $100,000.00 $59,953.985/17/06 $371,491.68 $371,491.68 $300,000.00 $71,491.686/21/06 $471,169.03 $471,169.03 $335,000.00 $136,169.037/19/06 $574,870.14 $574,870.14 $450,000.00 $124,870.148/16/06 $705,869.95 $705,869.95 $578,000.00 $127,869.959/20/06 $930,814.53 $930,814.53 $725,000.00 $205,814.5310/18/06 $799,926.42 $799,926.42 $835,000.00 ($35,073.58)11/15/06 $691,405.84 $691,405.84 $875,000.00 ($183,594.16)12/20/06 $563,058.61 $563,058.61 $902,000.00 ($338,941.39)1/17/07 $601,082.14 $601,082.14 $650,000.00 ($48,917.86)2/21/07 $497,770.74 $497,770.74 $602,000.00 ($104,229.26)3/21/07 $491,375.57 $491,375.57 $895,000.00 ($403,624.43)4/18/07 $808,638.04 $808,638.04 $923,000.00 ($114,361.96)5/16/07 $948,052.04 $948,052.04 $1,032,000.00 ($83,947.96)6/20/07 $1,018,048.38 $1,018,048.38 $703,000.00 $315,048.387/18/07 $687,950.92 $687,950.92 $635,000.00 $52,950.928/22/07 $299,337.00 $299,337.00 $375,000.00 ($75,663.00)9/19/07 $279,186.00 $279,186.00 $150,000.00 $129,186.00

Poor

o p t i m i z a t i o n

Drafting an accurate draw schedule andcarefully monitoring cash flow is the keyto optimal investing.

d r a w s c h e d u l e

a r b i t r a g e c o m p l i a n c e

m o n t h l y r e p o r t s

Area School District - 2003 Referendum Proceeds SAMPLEMonth End Reconciliation for February, 2003

Actual Cash Balance 1/31/03 14,266,057.35$

Interest Received

Interest Paid - Certificate of Deposit 2,542.00$ Interest Paid - US government Agency, coupon pmt 8,500.00$

Total Interest Received for Period 11,042.00$

Less: Accrued Interest Paid 2,400.00$ Amortized Premium Paid 1,721.00$

6,921.00$

Wire Transfers / Expenses

Total Wire Transfers / Expenses 154,000.00$

14,118,978.35$

Reconciliation to Bank Balances

14,102,137.35$ Accrued Interest Purchased 15,120.00$ Amortized Premium 1,721.00$

14,118,978.35$

14,118,978.35$

Variance -$

ONE INTEREST NUMBER TO BOOKKEEP!

Accounting process and monthlyreports ensure that staff isn’t burdened by extra bookkeeping.

Current Portfolio Interest Income EstimateAnticipated Arbitrage Rebate LiabilityTotal Interest Income Net of Rebate

$0.00$365,479.51

$365,479.51

Projected Rebate /Liability

$19,328,698.73 Projected Expense Need to spend an additional $5,720,135.646/12/10 100% $19,328,698.73 100.00% $19,328,698.73 Projected Expense Need to spend an additional $5,720,135.646/12/08 100% $19,328,698.73 100.00%

$15,691,037.63 Projected Expense Need to spend an additional $887,960.966/12/07 95% $18,362,263.79 99.00% $19,135,411.74 Projected Expense Need to spend an additional $4,753,700.712/12/06 75% $14,496,524.05 81.18%

$2,416,087.34 Actual Expense You have met the 10% requirement.6/12/06 45% $8,697,914.43 51.23% $9,902,092.36 Actual Expense You have met the 45% requirement.12/12/05 10% $1,932,869.87 12.50%

Regulatory Requirement Actual/Projected Portfolio Status Regulatory Status as of 11/12/02

Estimated Spend-Down Requirements Cumulative Expenses $13,608,563.09 Expenses to Date - 70.41%

Monthly snapshot shows your spend-down status in relation to your targets.

Current Portfolio Interest Income EstimatePotential Interest Income on BalancesEstimated Interest Income (Not including Rebate)

Original Portfolio Interest Income Estimate

Total Return for Arbitrage PurposesWeighted Avg Life of Future Projected Expenses28

$315,886.62

3.625%

$66,502.89$431,982.40

Investment Earnings Detail$365,479.51

Investment Proceeds Received

+ Total Interest Income Net of Rebate= Total Funding Available

- Cumulative Expenses= Outstanding P & I Net of Rebate$5,720,135.64

$19,328,698.73

$13,608,563.09

$18,963,219.22$365,479.51

Investment Proceeds Information

m o n t h l y r e p o r t s

Monthly reporting allows you to monitorimportant elements as the project progresses.

PMA-BondPrcds_v201db.qxd 9/25/06 4:05 PM Page 3





















$0.00$3,750,000.00

$3,750,000.00

$700,000 - $800,000


($5)

$0

$5

$10

$15

$20

$25

$30

$35


Millions

$15.5mm - Oct

$8.2mm - Oct

($900k) - Oct

Yiel

d %

's

30 90 150 210 270 330 390 450 510



Money Market Funds


0%

5%

10%

15%

20%

25%

JUL

SEP

NO

V

JAN

MA

R

MA

Y


2 2

7%

89%



Aug-05

Jul-05

May-05

Jun-05

Total Expenditures

($6,394,989.00)

($6,947,407.10)

Sep-05

Oct-05

Apr-05

Total Revenue

$4,621,061.72

Surplus/ (Deficit)

$2,440,807.62

$556,171.86

$5,362,189.08

$651,987.38

$3,760,767.63

$79,378.47

$5,436,697.72

FY 2005

Mar-06

Nov-05

Dec-05

Jan-06

Feb-06

$2,186,525.17

$653,242.10

$2,605,757.52

$2,563,075.43

$1,291,441.19

$3,415,047.82

$2,347,935.76$672,005.68

$939,672.56

($4,371,650.88)

($4,690,931.98)

($1,017,131.81)

($558,820.62)

($2,469,908.67)

($5,328,784.62)

($2,572,353.06)

($1,742,790.52)

($436,602.03)

$6,164,796.25

$2,706,092.74

$4,084,082.12

$2,490,996.08

$2,937,886.46

$2,461,601.97

$4,841,843.76

$2,618,605.36

$1,155,413.48

$1,455,221.75

FY 2006

$32,859,348.00

$34,338,018.66

$26,464,359.00

$27,390,611.57

0%2%4%6%8%

10%12%14%16%

JUL

SEP

NO

V

JAN

MA

R

MA

Y


64%

16%

5

52 8%




Total $202,111.33 $209,131.892.04% 2.34%


Total $115,537.23 $554,789.691.17% 6.19%


Fund Balance

($25)

($20)

($15)

($10)

($5)

$0

$5

$10

$15

$20

$25

Jul-

01

Nov

-01

Mar

-02

Jul-

02

Nov

-02

Mar

-03

Jul-

03

Nov

-03

Mar

-04

Jul-

04

Nov

-04

Mar

-05

Jul-

05

Nov

-05

Mar

-06

Jul-

06

Nov

-06

Mar

-07

Jul-

07

Nov

-07

Millions

Actual Projection



drAw Schedule

oPtiMizAtion

Monthly rePorting

PMA provides each of its clients with a monthly report detailing interest earnings projections, arbitrage spend down status, potential payments and comprehensive portfolio information.

21

Public FinAncecomprehensive long-range capital planning

overviewWith a strong focus on school districts, municipalities and special taxing districts, PMA has earned a reputation in the public sector for developing financial solutions that work. To illustrate, PMA:

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wealth of experiencePMA’s professionals are experienced and knowledgeable in municipal finance, debt issuance, cash management and investing, sales and trading and underwriting. These professionals have experience working in school business management, municipal government, business and accounting and now employ their extensive knowledge base and skill sets to help PMA clients.

one Powerful networkWith a large and diverse client base that ranges from rural elementary school districts to thriving counties, PMA’s client relationships have been built on a foundation of trust and value-added solutions. PMA’s clients are a part of a special community of public entities. As such, it is not uncommon for PMA to bring together several clients to brainstorm solutions to a financial challenge.




PuBlic FinAnce teAM

PMA’s Public Finance Team performs a number of services for its clients, ranging from financial analysis and capital planning to facilitating the debt issuance process. Below are some of the services the PMA Public Finance Team provides its clients.

• Financial analysis of proposed projects and needs

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• Insurance and rating agency presentation preparation

• Final closing documentation and certifications

• Levy assistance

22

ALSIP-MERRIONETTE PARK PUBLIC LIBRARY URBANA & CHAMPAIGN SANITARY DISTRICT

ARLINGTON HEIGHTS PARK DISTRICT VERNON HILLS PARK DISTRICT

BARTLETT PARK DISTRICT VILLA PARK PUBLIC LIBRARY

BOLINGBROOK PARK DISTRICT VILLAGE OF ADDISON

CAMPTON TOWNSHIP VILLAGE OF BARRINGTON

CAROL STREAM PARK DISTRICT VILLAGE OF BARTLETT

CHICAGO ROCKFORD INTERNATIONAL AIRPORT VILLAGE OF BENSENVILLE

CITY OF BATAVIA VILLAGE OF BLOOMINGDALE

CITY OF CREST HILL VILLAGE OF BUFFALO GROVE

CITY OF CRYSTAL LAKE VILLAGE OF CARY

CITY OF DES PLAINES VILLAGE OF CLARENDON HILLS

CITY OF ELGIN VILLAGE OF DOWNERS GROVE

CITY OF ELMHURST VILLAGE OF FLOSSMOOR

CITY OF EVANSTON VILLAGE OF FOX LAKE

CITY OF GENEVA VILLAGE OF GLENDALE HEIGHTS

CITY OF MCHENRY VILLAGE OF GLENVIEW

CITY OF MOLINE VILLAGE OF HAMPSHIRE

CITY OF WOODSTOCK VILLAGE OF HANOVER PARK

CRYSTAL LAKE PUBLIC LIBRARY VILLAGE OF HAWTHORN WOODS

DEERFIELD PUBLIC LIBRARY VILLAGE OF HOFFMAN ESTATES

FOX RIVER WATER RECLAMATION DISTRICT VILLAGE OF ITASCA

FOUNTAINDALE PUBLIC LIBRARY DISTRICT VILLAGE OF LAGRANGE

GLENCOE PARK DISTRICT VILLAGE OF LAGRANGE PARK

GLENVIEW PUBLIC LIBRARY VILLAGE OF LAKEWOOD

GREATER PEORIA AREA SANITARY DISTRICT VILLAGE OF LAKE IN THE HILLS

HOMER TOWNSHIP PUBLIC LIBRARY VILLAGE OF LIBERTYVILLE

LA GRANGE PUBLIC LIBRARY VILLAGE OF MORTON GROVE

LAKE COUNTY FOREST PRESERVE DISTRICT VILLAGE OF MOUNT PROSPECT

LISLE WOODRIDGE FIRE PROTECTION DISTRICT VILLAGE OF NEW LENOX

LOCKPORT TOWNSHIP PARK DISTRICT VILLAGE OF NORTH AURORA

MCHENRY COUNTY CONSERVATION DISTRICT VILLAGE OF OAK PARK

MORTON GROVE PUBLIC LIBRARY VILLAGE OF ORLAND PARK

NAPERVILLE PARK DISTRICT VILLAGE OF OSWEGO

NORTHBROOK PARK DISTRICT VILLAGE OF PALATINE

OAK PARK PUBLIC LIBRARY VILLAGE OF PARK FOREST

ORLAND PARK PUBLIC LIBRARY VILLAGE OF PLAINFIELD

OSWEGO PUBLIC LIBRARY VILLAGE OF RIVERSIDE

PALATINE RURAL FIRE PROTECTION DISTRICT VILLAGE OF RIVER FOREST

PARK DISTRICT OF HIGHLAND PARK VILLAGE OF SOUTH ELGIN

PARK DISTRICT OF OAK PARK VILLAGE OF SUGAR GROVE

PARK RIDGE PARK DISTRICT VILLAGE OF VILLA PARK

RIVER FOREST PARK DISTRICT VILLAGE OF WESTCHESTER

ROCK RIVER WATER RECLAMATION DISTRICT VILLAGE OF WOODRIDGE

ROCKFORD PARK DISTRICT WARREN-NEWPORT PUBLIC LIBRARY DISTRICT

SOMONAUK PUBLIC LIBRARY WARREN-WAUKEGAN FIRE PROTECTION DISTRICT

THORN CREEK BASIN SANITARY DISTRICT WHEELING PARK DISTRICT

TINLEY PARK PARK DISTRICT WHEATON PARK DISTRICT

CITY OF ELGIN VILLAGE OF GLENVIEW

ATTN: COLLEEN LAVERY ATTN: MAGGIE BOSLEY

PHONE: 847-931-5636 PHONE: 847-904-4357

PARK DISTRICT OF HIGHLAND PARK VILLAGE OF SOUTH ELGIN

ATTN: ELLIOTT BECKER ATTN: ART SKIBLEY

PHONE: 847-579-3113 PHONE: 847-742-5780

MUNICIPAL CLIENTELE

MUNICIPAL REFERENCES

23

February 25, 2014

Memo to Finance Committee Re: ComEd OpenLands Grant Application A Draft Resolution is attached that must be passed by the Board no later than our March 10, 2014 meeting to accompany a grant application that I am preparing which must be submitted by March 15th. The Grant is for the Pavilion in the open area between the Long Prairie Trail and the Trailstop building. This project is also in our draft budget. The revenue is under Grants in the general fund revenue section 01-00-377 ($10,000), and the expenditure in under Park Improvements 01-52-492 ($31,000). Thank you, Mark Lynch

“A Great Place to Call Home”

Office of Village Administrator

Village of Poplar Grove 200 Hill Street P.O. Box 1 Poplar Grove, Illinois 61065 Phone: (815) 765-3201 Fax: (815) 765-3571 Email: [email protected] Web: www.villageofpoplargrove.com

24

mailto:[email protected]

http://www.villageofpoplargrove.com/

RESOLUTION NO. ___________

A RESOLUTION OF THE VILLAGE OF POPLAR GROVE, ILLINOIS AUTHORIZING APPLICATION TO THE 2014 ComEd GREEN REGION

PROGRAM FOR THE VETERANS MEMORIAL PARK PAVILION PROJECT

WHEREAS, the Village of Poplar Grove, Illinois (“Applicant”) desires to undertake the Veterans Memorial Park Pavilion project; and

WHEREAS, the Applicant desires to apply to the ComEd Green Region Program for a grant for the purpose of carrying out this project; and

WHEREAS, the Applicant has received and understands the 2014 ComEd Green Region Program Guidelines.

NOW THEREFORE, BE IT RESOLVED THAT the Village Board hereby approves this project and authorizes application to the ComEd Green Region Program in the amount of $10,000, and

BE IT FURTHER RESOLVED, THAT the Applicant commits to the expenditure of matching funds in the amount of $21,000 necessary for the project’s success. PASSED UPON MOTION BY SECONDED BY BY ROLL CALL VOTE THIS ____ DAY OF JANUARY, 2013 AS FOLLOWS: VOTING “AYE”:

VOTING “NAY”:

ABSENT, ABSTAIN, OTHER

APPROVED________________________, 2014

25

___________________________________ VILLAGE PRESIDENT ATTEST: VILLAGE CLERK

26

February 25, 2014

Memo to Finance Committee

Re: Budget Draft

I am attaching a draft budget for review. The budget as it stands is balanced with a surplus of slightly

more than $500. I am working on cost savings in several areas that may increase the surplus during the year, but

those are not yet certain, so I have budgeted conservatively for revenue and liberally for expenditures, while

retaining numbers close to actual historic levels. Rather than write explanations for each line item, I will plan on

brief explanations for a few of the significant changes at our Finance Committee meeting and more detailed

explanations at our Saturday March 8th

meeting.

I have spent a good deal of time examining historical revenues and expenditures, as well as detailing

specific line items in the budget which I feel are better represented with additional detail, and the result is the

attached budget with a number of line item additions (not necessarily new spending, just more detail) from prior

years. I have met with Maria and she agrees with the line item changes, and is working on creating the new

numbers to accommodate those. Where you see numbers missing in the account number column, those will be

filled in before we finalize the budget. An example is the Social Security lines (FICA and Medicare) that were

brought up during Audit Interviews. There are several others I will explain at the meetings.

Thank you,

Mark Lynch

“A Great Place to Call Home”

Office of Village Administrator

Village of Poplar Grove 200 Hill Street

P.O. Box 1

Poplar Grove, Illinois 61065

Phone: (815) 765-3201

Fax: (815) 765-3571

Email: [email protected]

Web: www.villageofpoplargrove.com

27

mailto:[email protected]

http://www.villageofpoplargrove.com/

FY 2014 FY 2015

Adopted Admin

Account Number Account Title Budget Budget

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

General Fund

Revenue

01-00-301 Property Tax 193,117.00 194,201.00

01-00-303 Road & Bridge 91,400.00 92,300.00

01-00-304 Sales Tax 375,000.00 380,000.00

01-00-305 Income Tax 400,000.00 485,000.00

01-00-306 Telecommunications Tax 126,000.00 110,000.00

01-00-307 Municipal Utility Tax 170,000.00 180,000.00

01-00-308 Video Gaming Revenue - 12,000.00

01-00-309 Replacement Tax 4,100.00 4,100.00

01-00-312 Franchise NICOR 8,675.00 8,675.00

01-00-313 Court Fees 500.00 500.00

01-00-320 Liquor Licenses 11,340.00 12,000.00

01-00-325 Knolls Homeowners Arboretum Donantion - 1,000.00

01-00-330 Building Permits 26,000.00 35,000.00

01-00-333 Contributions 150.00 150.00

01-00-360 Water Meters 500.00 -

01-00-372 Rent 24,000.00 24,000.00

01-00-373 Interest 100.00 100.00

01-00-377 Grants - 10,000.00

01-00-379 Property Interest 50.00 50.00

01-00-392 Miscellaneous 500.00 500.00

01-00-393 Liability Insurance Property Tax Levy 15,840.00 17,000.00

01-00-394 Audit Property Tax Levy 15,840.00 17,000.00

Social Security Tax Levy 16,830.00

01-00-396 Sale of Assets -

TOTAL REVENUE 1,471,112.00 1,600,406.00

========================================================================================================================================================

Expenditures

Administration

01-50-400 Salaries and Wages 186,623.00$ 181,425.75

FICA 11,248.40

Medicare 2,630.64

Workers Compensation Ins. 780.13

01-50-405 Unemployment 4,337.00 1,175.08

01-50-406 IMRF 12,375.00 14,976.22

28

01-50-422 Liability Insurance 37,200.00 60,000.00

Life Ins. 150.00

01-50-423 Telephone 14,000.00 14,540.00

01-50-424 Health Ins. 91,760.00 20,903.52

01-50-425 Website Maintenance 550.00 550.00

01-50-426 Utilities 5,000.00 3,000.00

01-50-427 Bond Agent Fees 2,000.00 400.00

01-50-429 Travel 1,000.00 4,350.00

01-50-430 Security System 462.00 470.16

01-50-431 Training 1,000.00 3,275.00

01-50-432 Postage 1,000.00 1,000.00

01-50-433 Publication Expense 4,000.00 3,000.00

01-50-435 Audit 17,500.00 17,500.00

01-50-436 Engineering Services 65,000.00 53,000.00

01-50-437 Legal Services 65,000.00 85,000.00

01-50-438 Codification Services 8,000.00 8,000.00

01-50-439 Office System Support 17,451.00 22,652.20

Planning Services 12,000.00

Inspection Services 7,500.00 15,000.00

Code Enforcement 22,000.00

01-50-443 Dues 4,075.00 4,185.00

01-50-464 Clerk Admin 3,400.00 3,955.00

01-50-465 Office Supplies 6,065.00 7,000.00

01-50-467 Maintenance Supplies 1,600.00 1,600.00

01-50-468 Operating Supplies 500.00 750.00

01-50-470 Village Hall 3,150.00 1,000.00

01-50-479.050 Transfer to Capital Replacement 100,000.00 100,000.00

01-50-479.030 Transfer to W/S 38,568.00 92,409.71

01-50-479-032 Transfer to Debt Service 225,601.00 224,526.26

01-50-480 Miscellaneous Expense 1,000.00 1,000.00

01-50-483 Home State Bank Expense -

01-50-497 Land Loan (PG State Bank) 24,000.00 19,853.28

01-50-502 Maintenance Cleaning 2,640.00 2,860.00

Total Administration Expense 989,257.00 1,018,166.35

Contractual

01-51-438 Other Contractual 7,500.00 7,500.00

Total Contractual Expense 7,500.00 7,500.00

Parks

29

-

01-52-411 Parks Maintenance Equipment 15,800.00 800.00

01-52-420 Refuse Collection 1,000.00 -

01-52-466 Fuel & Lube 2,500.00 1,000.00

01-52-467 Parks Maintenance Supplies 6,150.00 12,000.00

01-52-469 Park Landscaping, Mowing, Trees 15,000.00 11,800.00

Arboretum Improvements 7,500.00

01-52-490 Playground Construction 22,000.00 2,000.00

01-52-492 Park Improvements 10,500.00 91,000.00

Total Parks Expense 72,950.00 126,100.00

Park Committee Funds

Fund Carry Forward (268.34)

Pop Machine Revenue 750.00

Pop Machine Expense 500.00

Net Parks Committee Funds (18.34)

Streets

01-53-400 Salaries and Wages 78,435.00 74,925.34

Overtime 5,870.00

FICA 5,009.31

Medicare 1,171.53

Workers Compensation Ins. 5,290.92

01-53-405 Unemployment 2,205.00 587.41

01-53-407 IMRF 8,267.00 8,418.87

Life Insurance 184.48

01-53-411 Vehicle Maintenance 15,000.00 15,000.00

01-53-412 Equipment Maintenance 5,000.00 5,000.00

01-53-413 Streets Maintenance 35,000.00 50,000.00

01-53-414 Plow Maintenance 4,000.00 5,000.00

01-53-424 Health Insurance 19,141.68

01-53-426 Street Lighting 40,000.00 40,000.00

Shop Building Heat 2,500.00

01-53-466 Fuel & Lube 20,000.00 19,000.00

01-53-467 Street Maintenance Supplies 11,500.00 19,500.00

01-53-468 Street Operating Supplies 35,000.00 35,000.00

01-53-480 Street Miscellaneous 2,500.00 1,500.00

01-53-493 Vehicles & Equipment 50,000.00 100,000.00

01-53-496 Storm Sewer Construction 35,000.00 35,000.00

30

01-53-497 Road Construction (non MFT) 6,700.00 -

Total Streets Expense 349,607.00 448,099.55

Total Revenues 1,471,112.00 1,600,406.00

Total Expenditures 1,415,867.00 1,599,865.90

Net Total General Fund 55,245.00 540.10

========================================================================================================================================================

Street Repair Fund

Fund Carry Forward 8,150.00

Truck Permit Revenue 8,150.00

Street Repairs -

Net Street Repair Fund 16,300.00

Motor Fuel Tax

Fund Carry Forward 119,279.07

20-00-306 Motor Fuel tax (rev) 147,000.00 148,000.00

20-00-373 Interest (rev) 500.00 500.00

20-00-412 MFT Street Construction 269,380.00 177,962.00

Net FY (121,880.00) (29,462.00)

Net Total Motor Fuel Tax 89,817.07

========================================================================================================================================================

Water/Sewer Enterprise

Revenues

30-00-333 Donations 100.00 -

30-00-343 Penalties 76,000.00 30,000.00

Meters & MXUs 2,700.00

30-00-350 Water/Sewer Sales 1,304,000.00 1,343,000.00

30-00-354 Tap on Fees - -

30-00-360 Turn on-off fees 3,500.00 8,000.00

30-00-373 Interest 100.00 100.00

31

30-00-390 Bond Proceeds - -

30-00-392 Miscellaneous Income - -

30-00-399 Transfer From General Fund 38,568.00 92,409.71

Total Fund 30 Revenue 1,422,268.00 1,476,209.71

Expenditures

30-00-405 Poplar Grove Loan(s) 4930126 & 0134 63,642.00 63,641.88

30-00-406 Bond 2008 Principal 70,125.00

Bond 2008A Principal

30-00-407 Bond 2001 - -

30-00-409 Bond 2005A 302,959.00 180,000.00

30-00-412 Bond 2012 Principal 174,283.00 121,095.00

Bond Agent Fees 2,000.00

30-00-420 Bond Issue Costs 20,000.00 20,000.00

30-00-474 Transfer to O&M 789,259.00 741,121.86

30-00-475 Bond 2005A Interest - 122,958.76

Bond 2008 Interest 38,025.00

Bond 2008A Interest 32,100.00

Bond 2012 Interest 57,857.50

30-00-476 Home State Bank Expense Tap On - -

30-00-478 Credit Card Charge 2,000.00 5,000.00

30-00-481 Bad Debt Expense - -

30-00-500 Depreciation Expense - -

Total Fund 30 Expense 1,422,268.00 1,383,800.00

Net Fund 30 - 92,409.71

----------------------------------------------------------------------------------------------------------------------------------------------------------------

Water/Sewer Operation & Maintenance

Revenue

31-00-399 Transfer From Water/Sewer Admin 789,259.00 741,121.86

Total Revenue W/S O&M 789,259.00 741,121.86

Water Expenditures

31-70-400 Salaries 60,585.00 45,480.45

Overtime 4,060.00

Temp Employees

31-70-405 Unemployment Compensation 1,339.00 365.15

32

31-70-406 FICA 3,756.00 3,071.51

31-70-406.1 Medicare 878.00 718.34


31-70-407 IMRF 6,386.00 5,162.11


Health Insurance 11,845.82

31-70-416 Utility System Chemicals 25,000.00 28,000.00

31-70-426 Utilities 25,000.00 25,000.00

31-70-431 Training 750.00 750.00

31-70-432 Postage 2,200.00 2,200.00

31-70-434 Printing 500.00 -

31-70-452 Travel 750.00 750.00

Meters MXUs 15,500.00

31-70-466 Equipment 30,000.00 7,250.00

31-70-467 Maintenance/Operations Suppplies 29,000.00 26,500.00

31-70-468 Operating Supplies 6,000.00 6,000.00

31-70-469 Burled Woods Recapture Fee - -

31-70-480 Miscellaneous 500.00 1,000.00

31-70-493 Well Rehab 20,000.00 50,000.00

31-70-500 Depreciation - -

Total Water Expenditures 212,644.00 236,680.02

Sewer Expenditures

31-75-400 Salaries and Wages 86,460.00 82,400.45

Overtime 8,570.00

Temporary Employees

31-75-405 Unemployment Compensation 2,228.00 635.04

31-75-406 FICA 5,360.00 5,640.17

31-75-406.1 Medicare 1,254.00 1,319.07


31-75-407 IMRF 9,113.00 9,479.12


Health Insurance 20,351.14

31-75-411 Contracted Labor 24,000.00 30,000.00

31-75-416 Utility System Chemicals 35,000.00 35,000.00

31-75-426 Utilities 200,000.00 160,000.00

31-75-429 Travel 1,000.00 500.00

31-75-431 Training 1,000.00 500.00

31-75-432 Postage 2,200.00 2,200.00

31-75-464 Fuel & Lube 7,500.00 7,500.00

31-75-466 Equipment 92,000.00 93,000.00

31-75-467 Maintenance Supplies 32,000.00 73,500.00

33

31-75-468 Operating Supplies 27,500.00 29,500.00

31-75-480 Miscellaneous 1,500.00 2,500.00

31-75-493 Capital Outlay New Sewer Plant 11,500.00 12,000.00

31-75-498 NPDS Permit 37,000.00 17,500.00

Total Sewer Expenditures 576,615.00 596,851.56

Total W/S Revenue Fund 31 789,259.00 741,121.86

Total W/S Expense Fund 31 789,259.00 833,531.57

Net W/S Fund 31 - (92,409.71)

Net Funds 30 & 31 (0.00)

=================================================================================================================

Debt Service Fund

32-00-206 GO Bonds Payable Revenue -

32-00-373 Interest -

32-00-401 Transfer from General Fund 225,601.00 224,526.26

32-00-470 Principal on 2005B Bond 135,000.00 140,000.00

32-00-475 Interest on Bond 90,601.00 84,526.26

Debt Service Fund Revenue 225,601.00 224,526.26

Debt Service Fund Expense 225,601.00 224,526.26

Net Debt Service Fund - -

=================================================================================================================

Capital Replacement Fund

50-00-401 Transfer from General Fund 100,000.00 100,000.00

34

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