Mesirow Financial, Inc. as Underwriter

Transcription

1 New Issue Insured Investment Ratings: Underlying Investment Rating: Moody s Investors Service A2 (Stable Outlook) Moody s Investors Service A3 Standard & Poor s AA (Stable Outlook) (AGM Insured) Final Official Statement Dated December 16, 2014 Subject to compliance by the Village with certain covenants, in the opinion of Chapman and Cutler LLP, Bond Counsel, under present law, interest on the Bonds is excludable from gross income of the owners thereof for federal income tax purposes and is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations, but such interest is taken into account in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. 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. $7,615,000 VILLAGE OF LANSING Cook County, Illinois General Obligation Refunding Bonds, Series 2014 Dated Date of Delivery Book-Entry Non-Callable Bank-Qualified Due Serially March 1, The $7,615,000 General Obligation Refunding Bonds, Series 2014 (the Bonds ) are being issued by the Village of Lansing, Cook County, Illinois (the Village ). Interest is payable semiannually on each March 1 and September 1, commencing September 1, 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. The Bonds will mature on March 1, in the following years and amounts. Interest is calculated based on a 360-day year of twelve 30-day months. AMOUNTS, MATURITIES, INTEREST RATES, PRICES OR YIELDS AND CUSIP NUMBERS (1) Principal Due Interest Yield or CUSIP Principal Due Interest Yield or CUSIP Amount March 1 Rate Price Number(1) Amount March 1 Rate Price Number(1) $770, % 0.850% NQ1 $1,000, % 2.200% NU2 860, % 1.200% NR9 1,015, % 2.450% NV0 880, % 1.600% NS7 1,060, % 2.650% NW8 915, % 1.900% NT5 1,115, % 2.800% NX6 The Bonds are not subject to optional redemption prior to maturity. NO OPTIONAL REDEMPTION BOND INSURANCE The scheduled payment of principal of and interest on the Bonds when due will be guaranteed under an insurance policy to be issued concurrently with the delivery of the Bonds by ASSURED GUARANTY MUNICIPAL CORP. ( AGM ). See APPENDIX E herein. PURPOSE, LEGALITY AND SECURITY The Bonds will be used to currently refund a portion of the Village s outstanding General Obligation Bonds, Series 2008A, due March 1, , and to pay the costs of issuance of the Bonds. See PLAN OF FINANCING herein. In the opinion of Chapman and Cutler LLP, Chicago, Illinois, Bond Counsel, the Bonds are valid and legally binding upon the Village and are payable from any funds of the Village legally available for such purpose, and all taxable property in the Village is subject to the levy of taxes to pay the same without limitation as to rate or amount, except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. See AUTHORIZATION AND SECURITY FOR THE BONDS herein. The Bonds are offered when, as and if issued by the Village and received by the Underwriter subject to prior sale, to withdrawal or modification of the offer without notice, and to the approval of legality by Chapman and Cutler LLP, Chicago, Illinois, Bond Counsel, and certain other conditions. Certain legal matters will be passed upon for the Underwriter by Chapman and Cutler LLP, Chicago, Illinois. Hiskes, Dillner, O'Donnell, Marovich & Lapp, Ltd. will pass on certain matters for the Village. It is expected that the Bonds are to be made available for delivery on or about December 22, Mesirow Financial, Inc. as Underwriter (1) CUSIP numbers appearing in this Final Official Statement have been provided by the CUSIP Service Bureau, which is managed on behalf of the American Bankers Association by Standard & Poor's, a division of the McGraw- Hill Companies, Inc. The Village is not responsible for the selection of CUSIP numbers and makes no representation as to their correctness on the Bonds or as set forth on the cover of this Final Official Statement.

2 No dealer, broker, salesman or other person has been authorized by the Village 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 Village. Certain information contained in the Official Statement and the Final Official Statement may have been obtained from sources other than records of the Village 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 VILLAGE 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 Final 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. Assured Guaranty Municipal Corp. ( AGM ) makes no representation regarding the Bonds or the advisability of investing in the Bonds. In addition, AGM 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 AGM supplied by AGM and presented under the headings APPENDIX E - BOND INSURANCE AND SPECIMEN POLICY. (i)

3 TABLE OF CONTENTS BOND ISSUE SUMMARY... 1 VILLAGE OF LANSING... 2 AUTHORIZATION AND SECURITY FOR THE BONDS... 2 THE VILLAGE... 3 General Information... 3 Accessibility... 3 Government and Municipal Services... 3 Recreation... 3 Education... 4 Library... 4 SOCIOECONOMIC INFORMATION... 4 Population... 4 Unemployment Rates... 6 Housing... 6 Income... 7 Retail Activity... 8 PLAN OF FINANCING... 9 DEBT INFORMATION... 9 PROPERTY ASSESSMENT AND TAX INFORMATION REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES Real Property Assessment Equalization Exemptions Tax Levy Property Tax Extension Limitation Law Extensions Collections Truth in Taxation Law FINANCIAL INFORMATION Budgeting Investments Financial Reports No Consent or Updated Information Requested of the Auditor Summary Financial Information EMPLOYEE RETIREMENT AND OTHER POSTEMPLOYMENT BENEFITS OBLIGATIONS REGISTRATION, TRANSFER AND EXCHANGE TAX EXEMPTION QUALIFIED TAX EXEMPT OBLIGATIONS CONTINUING DISCLOSURE THE UNDERTAKING Annual Financial Information Disclosure Reportable Events Disclosure Consequences of Failure of the Village to Provide Information Amendment; Waiver Termination of Undertaking Additional Information Dissemination of Information; Dissemination Agent NO OPTIONAL REDEMPTION LITIGATION FINAL OFFICIAL STATEMENT AUTHORIZATION INSURED INVESTMENT RATINGS UNDERLYING INVESTMENT RATING CERTAIN LEGAL MATTERS UNDERWRITING MUNICIPAL ADVISOR CERTIFICATION APPENDIX A - EXCERPTS OF FISCAL YEAR 2014 AUDITED FINANCIAL STATEMENTS APPENDIX B - DESCRIBING BOOK-ENTRY-ONLY ISSUANCE APPENDIX C - PROPOSED FORM OF OPINION OF BOND COUNSEL APPENDIX D - EXCERPTS OF FISCAL YEAR 2014 AUDITED FINANCIAL STATEMENTS RELATING TO THE VILLAGE S PENSION PLANS AND OTHER POSTEMPLOYMENT BENEFITS APPENDIX E - BOND INSURANCE AND SPECIMEN BOND INSURANCE POLICY (ii)

4 Village of Lansing, Cook County, Illinois $7,615,000 General Obligation Refunding Bonds, Series 2014 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. Issuer: Village of Lansing, Cook County, Illinois. Issue: $7,615,000 General Obligation Refunding Bonds, Series Dated Date: Date of delivery (expected to be on or about December 22, 2014). Interest Due: Each March 1 and September 1 commencing September 1, Principal Due: No Optional Redemption: Authorization: Security: Ratings/Insurance: Purpose: Tax Exemption: Bank Qualification: Bond Registrar/Paying Agent/ Escrow Agent: Serially March 1, 2016, through March 1, 2023, as detailed on the front page of this Final Official Statement. The Bonds are not subject to optional redemption prior to maturity. Pursuant to the home rule powers of the Village and an Ordinance (the Bond Ordinance ) adopted by the President and Board of Trustees of the Village on the 2 nd day of December, 2014, as supplemented by a notification of sale. The Bonds are valid and legally binding upon the Village and are payable from any funds of the Village legally available for such purpose, and all taxable property in the Village is subject to the levy of taxes to pay the same without limitation as to rate or amount, except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. See AUTHORIZATION AND SECURITY FOR THE BONDS herein. Moody s Investors Service, New York, New York and Standard & Poor s, a Division of the McGraw- Hill Companies, New York, New York, have assigned ratings of A2 (Stable Outlook), and AA (Stable Outlook), respectively, to the Bonds with the understanding that upon delivery of the Bonds, a policy guaranteeing the payment when due of the principal of and interest on the Bonds will be issued by ASSURED GUARANTY MUNICIPAL CORP. ( AGM ). See APPENDIX E herein. Moody s Investors Service, New York, New York, has assigned the Bonds an underlying rating of A3. The Bonds will be used to currently refund a portion of the Village s outstanding General Obligation Bonds, Series 2008A, due March 1, and to pay the costs of issuance of the Bonds. See PLAN OF FINANCING herein. Chapman and Cutler LLP, Chicago, Illinois, will provide an opinion as to the tax exemption of the interest on the Bonds as discussed under TAX EXEMPTION in this Final Official Statement. See APPENDIX C - PROPOSED FORM OF OPINION OF BOND COUNSEL. 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. The Chicago Trust Company, N.A., Lansing, Illinois. Delivery: The Bonds are expected to be delivered on or about December 22, Book-Entry Form: Denomination: Municipal Advisor: Underwriter: Bond Counsel and Underwriter's Counsel: 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. $5,000 or integral multiples thereof. Speer Financial, Inc., Chicago, Illinois. Mesirow Financial, Inc., Chicago, Illinois. Chapman and Cutler LLP, Chicago, Illinois. 1

5 Village of Lansing, Cook County, Illinois $7,615,000 General Obligation Refunding Bonds, Series 2014 VILLAGE OF LANSING Cook County, Illinois Norman Abbott Village President Village Trustees Julie Butler Terrence Kapteyn Michael Skrbina Tony DeLaurentis Michael Manno Mikal Stole Officials Donna Kooyenga Village Clerk J. Wynsma Village Administrator Arlette Frye Treasurer Hiskes, Dillner, O'Donnell, Marovich & Lapp, Ltd. Village Attorney Chapman and Cutler LLP Bond Counsel and Underwriter's Counsel Speer Financial, Inc. Municipal Advisor AUTHORIZATION AND SECURITY FOR THE BONDS The Bonds are being issued by the Village pursuant to the home rule powers of the Village and pursuant to a bond ordinance adopted by the President and Board of Trustees of the Village on the 2 nd day of December, 2014, as supplemented by a notification of sale (together, the Ordinance or Bond Ordinance ). The Bonds, in the opinion of Chapman and Cutler LLP, Chicago, Illinois, Bond Counsel ( Bond Counsel ), are valid and legally binding upon the Village and are payable from any funds of the Village legally available for such purpose, and all taxable property in the Village is subject to the levy of taxes to pay the same without limitation as to rate or amount, except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. The Ordinance provides for the levy of ad valorem taxes, unlimited as to rate or amount, upon all taxable property within the Village in amounts sufficient to pay, as and when due, all principal of and interest on the Bonds (the Pledged Taxes ). The Ordinance will be filed with the Cook County Clerk, and will serve as authorization to said County Clerk to extend and collect the property taxes as set forth in the Ordinance. 2

6 Village of Lansing, Cook County, Illinois $7,615,000 General Obligation Refunding Bonds, Series 2014 THE VILLAGE General Information The Village of Lansing (the Village ) was incorporated in 1893 and is a home rule unit of government. The Village encompasses an area of approximately 6.8 square miles in southern Cook County, Illinois, and is located approximately 25 miles southeast of downtown Chicago. According to the 2010 U.S. Census, the Village s population is 28,331. Accessibility The Village is accessible via Interstates 80 and 94, U.S. Route 6 and State Route 83. The Village owns and operates the 290-acre Lansing Municipal Airport, which is classified as a reliever airport for Midway and O Hare International Airports by the Chicago Area Transportation System. O Hare International Airport is approximately 40 miles northwest of the Village, and Midway Airport is approximately 25 miles northwest. Commuter rail service to Chicago s Loop is available via the Electric Line of Metra with its station in neighboring Village of Homewood, and via South Shore Line at its station in nearby Hammond, Indiana. Government and Municipal Services As a home rule unit of government, the Village may exercise any powers and perform any functions pertaining to its government and the management of its affairs including, but not limited to, the power to tax and to incur debt without referendum and without limitation as to amount, except that debt payable from ad valorem taxes must mature within 40 years. The Village is governed by a Village President and a six-member Board of Trustees elected at large for overlapping four-year terms. Village administration includes a full-time Village President (Mayor) and an elected Village Clerk. Additionally, the governing body also includes a Village Administrator. The Village President appoints the Village Administrator, with the advice and consent of the Board of Trustees, to serve as the chief administrative officer, responsible for managing daily operations and providing leadership and direction to all Village departments. The Village Administrator reports directly to the Village President. A Village Treasurer is also appointed by the Village President with the approval of the Board of Trustees. Trustees chair committees which monitor specific Village activities and prepare the annual budgets for approval by the Village President and the Board of Trustees. Fire protection in the Village is provided by the Lansing Fire Department which currently has 27 full-time firefighters, and 17 paid-on-call personnel. Police protection is provided by the Lansing Police Department which presently has 52 sworn police officers, 7 part-time officers and 19 civilians. Of the 19 civilians, 16 are full-time and three are part-time. The Village purchases Lake Michigan water from the City of Hammond, Indiana, and distributes it to its customers via its own distribution system for Village residents and for sale to the neighboring Villages of South Holland and Lynwood. The Village owns and operates its own sewerage collection system. Sewage treatment is provided by the Metropolitan Water Reclamation District of Greater Chicago. The Village owns and operates its facilities as a combined waterworks and sewerage system. NICOR and Commonwealth Edison provide gas and electricity, respectively, and both AT&T and Comcast provide telephone and cable services to Village residents. Recreation Recreational facilities and activities are provided primarily by Lan-Oak Park District (the District ). The District maintains 161 acres of land (115 owned and 46 leased), including 21 park sites. Facilities include a health fitness center and sports complex where residents can enjoy a variety of types of exercise clubs, painting, square dancing, volleyball, and basketball. The District also has a swimming pool, ball diamonds, tennis courts, picnic areas, a fishing pond, and jogging and walking tracks. 3

7 Village of Lansing, Cook County, Illinois $7,615,000 General Obligation Refunding Bonds, Series 2014 Education The Village is served by three grade school districts and two high school districts. Grade School District 158 and Thornton Fractional High School District 215 are the primary school districts. South Suburban Community College District 510, offering two-year certificate and degree programs, is located in nearby South Holland and serves the Village s higher educational needs. Numerous colleges and universities are available throughout the Chicago metropolitan area. Library The Lansing Public Library owns over 100,000 books and subscribes to over 250 magazines and newspapers. The Library loans a variety of musical CDs, and, for a fee of just $1.00, provides 3-day loans of videos and DVDs. Free internet service is also provided, as well as access to online databases for research. The Library s trained reference staff is available to help with all research needs. Additionally, the Library provides a full range of programming and events for all ages, including speakers, book discussion groups, story times, and concerts. Population SOCIOECONOMIC INFORMATION The following table shows a trend of population for the Village for the past 40 years demonstrating the stability of the community. Village Population % Change Village of Lansing... 25,805 28,039 28,086 28,332 28, % Cook County... 5,429,369 5,256,535 5,105,067 5,376,741 5,194,675 (3.39%) State of Illinois... 11,110,285 11,426,285 11,430,602 12,419,293 12,830, % Note: (1) Source: U.S. Bureau of the Census. Following are lists of large employers located in the Village and in the surrounding area. Major Village Employers(1) Approximate Name Product/Service Employment Silver Line Building Products Corp.... Vinyl Windows and Patio Doors NB Coatings, Inc.... Paints and Coatings Land O'Frost, Inc.... Meat Packing Plant Orc Protel, LLC... Telemarketing Services Temperature Equipment Corp.... Air Conditioning, Refrigeration and Heating Equipment American School of Correspondence... Vocational School Tri-State Nursing & Rehabilitation Center... Nursing Home and Rehabilitation Center World-Wide Protection Group, Inc.... Detective and Armored Car Services Larc Industries... Plastic Products Phillips Chevrolet, Inc.... New and Used Car Dealer Note: (1) Source: 2014 Illinois Manufacturers Directory, 2014 Illinois Services Directory and a selective telephone survey. 4

8 Village of Lansing, Cook County, Illinois $7,615,000 General Obligation Refunding Bonds, Series 2014 Major Area Employers(1) Approximate Location Name Product/Service Employment Chicago Heights... YRC, Inc.... Local and Long Distance Trucking Services... 1,500 Chicago Heights... Franciscan Alliance, Inc.... General Hospital... 1,200 South Holland... Carl Buddig & Co.... Processed Luncheon Meats Chicago Heights... Ford Motor Company... Automobile Body Stamping Sauk Village... ABF Freight System, Inc.... Long-Distance Trucking Services Glenwood... Landauer, Inc.... Radon And Radiation Monitors Chicago Heights... Chicago Heights Steel... Steel Bars and Fenceposts South Holland... Rupari Food Services, Inc.... Meat Processing Chicago Heights... Behr Process Corp.... Paints and Coatings Chicago Heights... SouthStar Services... Plastic Products Chicago Heights... UGN, Inc.... Automotive Sound Deadening Equipment Lynwood... Kickert School Bus Line, Inc.... School Bus Service South Holland... Accurate Dispersions... Paints and Coatings Chicago Heights... Innophos, Inc.... Chemicals, Phosphates Chicago Heights... Minority Auto Handling... Trucking South Holland... Union Pacific Railroad Co.... Railroad Transportation Services Note: (1) Source: 2014 Illinois Manufacturers Directory, 2014 Illinois Services Directory and a selective telephone survey. The following tables show employment by industry and by occupation for the Village, the County and the State as reported by the U.S. Census Bureau American Community Survey 5-year estimated values (the ACS ). Employment By Industry(1) The Village Cook County State of Illinois Classification Number Percent Number Percent Number Percent Agriculture, Forestry, Fishing, Hunting, and Mining % 4, % 63, % Construction % 115, % 324, % Manufacturing... 1, % 262, % 767, % Wholesale Trade % 69, % 189, % Retail Trade... 1, % 240, % 658, % Transportation and Warehousing, and Utilities... 1, % 151, % 352, % Information % 59, % 130, % Finance and Insurance, and Real Estate and Rental and Leasing % 204, % 457, % Professional, Scientific, Management, Administrative, and Waste Management Services % 326, % 668, % Educational, Health and Social Services... 3, % 542, % 1,362, % Arts, Entertainment, Recreation, Accommodation and Food Services % 233, % 532, % Other Services (except public administration) % 123, % 292, % Public administration % 91, % 234, % Total... 13, % 2,424, % 6,035, % Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2008 to Employment By Occupation(1) The Village Cook County State of Illinois Classification Number Percent Number Percent Number Percent Management, Professional and Related Occupations... 3, % 908, % 2,181, % Service Occupations... 2, % 433, % 1,028, % Sales and Office Occupations... 4, % 606, % 1,526, % Natural Resources, Construction, Extraction, and Maintenance.. 1, % 156, % 462, % Production, Transportation, and Material Moving... 1, % 319, % 836, % Total... 13, % 2,424, % 6,035, % Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2008 to

9 Village of Lansing, Cook County, Illinois $7,615,000 General Obligation Refunding Bonds, Series 2014 Unemployment Rates The following shows the annual average unemployment rates for the Village, Cook County and the State of Illinois. Annual Average Unemployment Rates(1) Calendar The Cook State of Year Village County Illinois % 6.4% 5.8% % 4.8% 4.6% % 5.2% 5.1% % 6.4% 6.4% % 10.4% 10.0% % 10.8% 10.5% % 10.3% 9.7% % 9.3% 8.9% % 9.6% 9.2% 2014(2) % 6.5% 6.2% Notes: (1) Source: Illinois Department of Employment Security. (2) Preliminary rates for the month of October Housing The ACS reported that the median value of the Village s owner-occupied homes was $143,600. This compares to $244,900 for the County and $190,800 for the State. The following table represents the five year average market value of specified owner-occupied units for the Village, the County and the State at the time of the American Community Survey. Specified Owner-Occupied Units(1) The Village Cook County State of Illinois Value Number Percent Number Percent Number Percent Less than $50, % 36, % 224, % $50,000 to $99, , % 71, % 468, % $100,000 to $149, , % 128, % 482, % $150,000 to $199, , % 186, % 531, % $200,000 to $299, , % 300, % 712, % $300,000 to $499, % 272, % 563, % $500,000 to $999, % 114, % 214, % $1,000,000 or more % 28, % 50, % Total... 8, % 1,140, % 3,248, % Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2008 to Mortgage Status(1) The Village Cook County State of Illinois Number Percent Number Percent Number Percent Housing Units with a Mortgage... 5, % 810, % 2,238, % Housing Units without a Mortgage.. 2, % 329, % 1,010, % Total... 8, % 1,140, % 3,248, % Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2008 to

10 Village of Lansing, Cook County, Illinois $7,615,000 General Obligation Refunding Bonds, Series 2014 Income Per Capita Personal Income for the Ten Highest Income Counties in the State(1) Rank DuPage County... $38, Lake County... 38, McHenry County... 32, Monroe County... 32, Kendall County... 31, Will County... 30, Woodford County... 30, Cook County... 30, McLean County... 29, Kane County... 29,730 Note: (1) Source: U.S. Bureau of the Census 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) Ill. Family Ill. County Income Rank DuPage County...$95,204 1 Kendall County... 93,153 2 Lake County... 92,952 3 McHenry County... 88,370 4 Will County... 86,953 5 Kane County... 78,892 9 Cook County... 66, Note: (1) Source: U. S. Bureau of the Census, American Community Survey, estimates. The ACS reported that the Village had a median family income of $64,987. This compares to $66,124 for the County and $70,144 for the State. The following table represents the distribution of family incomes for the Village, the County and the State at the time of the American Community Survey. Median Family Income(1) The Village Cook County State of Illinois Value Number Percent Number Percent Number Percent Under $10, % 64, % 133, % $10,000 to $14, % 40, % 86, % $15,000 to $24, % 98, % 223, % $25,000 to $34, % 104, % 257, % $35,000 to $49, % 145, % 382, % $50,000 to $74, , % 209, % 593, % $75,000 to $99, , % 162, % 477, % $100,000 to $149, , % 191, % 553, % $150,000 to $199, % 81, % 218, % $200,000 or more % 91, % 214, % Total... 6, % 1,189, % 3,142, % Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2008 to

11 Village of Lansing, Cook County, Illinois $7,615,000 General Obligation Refunding Bonds, Series 2014 The ACS reported that the Village had a median household income of $51,637. This compares to $54,648 for the County and $56,853 for the State. The following table represents the distribution of household incomes for the Village, the County and the State at the time of the American Community Survey. Median Household Income(1) The Village Cook County State of Illinois Value Number Percent Number Percent Number Percent Under $10, % 160, % 329, % $10,000 to $14, % 95, % 223, % $15,000 to $24, , % 200, % 481, % $25,000 to $34, , % 186, % 460, % $35,000 to $49, , % 249, % 622, % $50,000 to $74, , % 339, % 870, % $75,000 to $99, , % 235, % 622, % $100,000 to $149, , % 253, % 665, % $150,000 to $199, % 101, % 250, % $200,000 or more % 111, % 246, % Total... 11, % 1,933, % 4,774, % Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2008 to Retail Activity Sales Tax Receipts shown below represent the Village s historical 1% local government share and the Village s 0.5% home rule share of the State of Illinois Sales Tax Receipts as collected and disbursed by the State of Illinois. Retailers' Occupation, Service Occupation and Use Tax(1) Total Fiscal Municipal Tax Municipal State Sales Annual Percentage Year Distribution(2) Home Rule Tax Tax Distribution(3) Change + (-) $5,102,347 $1,966,379 $7,068,726 (1.08%)(4) ,055,774 1,923,620 6,979,394 (1.26%) ,700,149 1,757,292 6,457,440 (7.48%) ,186,058 1,500,209 5,686,267 (11.94%) ,017,982 1,329,842 5,347,824 (5.95%) ,814,968 1,205,099 5,020,066 (6.13%) ,678,304 1,107,658 4,785,962 (4.66%) ,850,095 1,099,050 4,949, % Notes: (1) Source: Illinois Department of Revenue. (2) Tax distributions are based on records of the Illinois Department of Revenue relating to the 1% municipal portion of the Retailers' Occupation, Service Occupation and Use Tax, collected on behalf of the Village, less a State administration fee. The municipal 1% includes tax receipts from the sale of food and drugs which are not taxed by the State. (3) Includes the 0.5% municipal home rule sales tax. (4) The 2007 percentage change is based on 2006 sales tax of $5,161,212. 8

12 Village of Lansing, Cook County, Illinois $7,615,000 General Obligation Refunding Bonds, Series 2014 PLAN OF FINANCING The Bond proceeds will be used to currently refund the portion of the Village s outstanding General Obligation Bonds, Series 2008A, due March 1, , as listed below (the Refunded Bonds ), and pay the costs of issuance of the Bonds. Certain proceeds received from the sale of the Bonds will be deposited in an Escrow Account (the Escrow Account ) to be held by The Chicago Trust Company, N.A., Lansing, Illinois (the Escrow Agent ), under the terms of an Escrow Letter Agreement, dated as of the date of issuance of the Bonds, between the Village and the Escrow Agent. The moneys so deposited in the Escrow Account will be held in cash. The cash deposit will be sufficient to pay when due the principal of and interest on the Refunded Bonds up to and including the prior redemption date thereof. The Refunded Bonds General Obligation Bonds, Series 2008A Outstanding Refunded Redemption Redemption Maturities Amount Amount Price Date 3/1/ $ 850,000 $ 0 N/A N/A 3/1/ , , % 3/1/15 3/1/ , , % 3/1/15 3/1/ , , % 3/1/15 3/1/ ,010,000 1,010, % 3/1/15 3/1/ ,055,000 1,055, % 3/1/15 3/1/ ,110,000 1,110, % 3/1/15 3/1/ ,160,000 1,160, % 3/1/15 3/1/ ,220,000 1,220, % 3/1/15 Total... $9,180,000 $8,330,000 DEBT INFORMATION After issuance of the Bonds and the refunding of the Refunded Bonds, the Village will have outstanding $17,160,000 principal amount of general obligation bonds. The Village does not intend to issue additional debt within the next three months. General Obligation Bonds(1) (Principal Only) Series Series Series Series Series Total Calendar A 2009A 2009B 2011 The Less: The Outstanding Cumulative Retirement Year Bonds Bonds Bonds Bonds Bonds Bonds Refunded Bonds Debt Amount Percent $135,000 $ 850,000 $ 0 $ 0 $ 145,000 $ 0 $ 0 $ 1,130,000 $ 1,130, % , , , ,000 (885,000) 1,060,000 2,190, % , , , ,000 (925,000) 1,155,000 3,345, % , , , ,000 (965,000) 1,190,000 4,535, % ,010, , ,000 (1,010,000) 1,075,000 5,610, % ,055, ,000 1,000,000 (1,055,000) 1,170,000 6,780, % ,110, ,000 1,015,000 (1,110,000) 1,190,000 7,970, % ,160, , ,000 1,060,000 (1,160,000) 1,690,000 9,660, % ,220, , , ,115,000 (1,220,000) 1,665,000 11,325, % ,000, ,000,000 12,325, % ,000, ,000,000 13,325, % ,000, ,000,000 14,325, % , ,000 15,135, % ,000, ,000,000 16,135, % ,025, ,025,000 17,160, % Total... $575,000 $9,180,000 $4,060,000 $2,775,000 $1,285,000 $7,615,000 $(8,330,000) $17,160,000 Note: (1) Source: the Village. 9

13 Village of Lansing, Cook County, Illinois $7,615,000 General Obligation Refunding Bonds, Series 2014 Detailed Overlapping Bonded Debt(1) (As of December 2, 2014) Outstanding Applicable to City Debt(2) Percent(3) Amount Schools: School District Number $ 4,270, % $ 545,706 Thornton School District Number ,695, % 34,239 Lansing School District Number ,348, % 14,074,872 Brookwood School District Number ,290, % 169,416 Sunnybrook School District Number ,502, % 1,180,842 Thornton Township High School District Number ,952, % 962,534 Bloom Town High School District Number ,930, % 31,353 Thornton Fractional Twp High School District Number ,385, % 14,415,464 Community College District Number ,437, % 1,526,046 Community College District Number ,822, % 4,911 Total Schools... $32,945,383 Others: Cook County... $3,578,905, % $10,736,715 Cook County Forest Preserve District ,655, % 538,965 Metropolitan Water Reclamation District... 2,168,368, % 6,721,944 Calumet Memorial Park District... 2,880, % 5,760 Lan-Oak Park District... 3,540, % 3,522,654 Total Others... $21,526,038 Total Schools and Other Overlapping Bonded Debt... $54,471,421 Notes: (1) Source: Cook County Clerk's Office. (2) Overlapping debt percentages based on 2013 EAV, the most current available, Statement of Bonded Indebtedness(1) (As of December 2, 2014) Ratio To Per Capita Amount Equalized Estimated (2010 Pop. Applicable Assessed Actual Est. 28,331) Village EAV of Taxable Property, $ 381,638, % 33.33% $13, Estimated Actual Value, $1,144,915, % % $40, Total Direct Bonded Debt... $ 17,160, % 1.50% $ Overlapping Bonded Debt: Schools... $ 32,945, % 2.88% $ 1, All Others... 21,526, % 1.88% Total Overlapping Bonded Debt... $ 54,471, % 4.76% $ 1, Total Direct and Overlapping Bonded Debt... $ 71,631, % 6.26% $ 2, Note: (1) Source: Cook County Clerk s Office. PROPERTY ASSESSMENT AND TAX INFORMATION For the 2013 levy year, the most current available, the Village s EAV was comprised of 63.67% residential, 13.83% industrial, 22.28% commercial, 0.21% railroad and less than 0.01% farm property valuations. Equalized Assessed Valuation(1) Levy Years By Property Class: (3) Residential... $369,059,812 $373,815,990 $288,588,310 $258,680,065 $243,000,622 Farm... 11,719 9,027 9,027 9,027 9,027 Commercial ,138, ,789, ,054,975 92,212,713 85,037,159 Industrial... 73,323,967 69,316,549 59,443,471 56,313,373 52,789,863 Railroad , , , , ,969 Total EAV... $567,377,253 $559,790,853 $449,970,464 $408,111,322 $381,638,640 Percent Change %(2) (1.34%) (19.62%) (9.30%) (6.49%) Notes: (1) Source: Cook County Clerk s Office. (2) Percentage change based on 2008 EAV of $520,693,211. (3) Reassessment year. 10

14 Village of Lansing, Cook County, Illinois $7,615,000 General Obligation Refunding Bonds, Series 2014 Representative Tax Rates(1) (Per $100 EAV) Levy Years The Village: Corporate... $ $ $ $ $ IMRF/Social Security Garbage Police Pension Crossing Guards Fire Pension Library Debt Service Total Village Rates... $ $ $ $ $ Cook County... $ $ $ $ $ Cook County Forest Preserve District Metropolitan Water Reclamation District Consolidated Elections Thornton Township(2) South Cook County Mosquito Abatement District Lan-Oak Park District School District Number High School District Number Community College District Number Total Rates(3)... $ $ $ $ $ Notes: (1) Source: Cook County Clerk s Office. (2) Includes Road and Bridge and General Assistance. (3) Representative tax rates for other government units are from Thornton Township tax code 37022, which represents the largest portion of the Village's 2013 EAV, the most current available. Tax Extensions and Collections(1) Levy Coll. Taxes Total Collections(3) Year Year Extended(2) Amount Percent $ 6,330,866 $6,277, % ,497,904 6,417, % ,795,872 6,677, % ,334,777 8,258, % ,777,524 8,674, % ,449,383 9,354, % ,443,697 9,262, % (2)... 10,178,304 9,385, % Notes: (1) Source: Cook County Treasurer s Office. Includes Library, and Police and Fire Pensions. (2) Collections are as of October 31, Principal Taxpayers(1) Taxpayer Name Business/Service 2013 EAV(2) Funb 2000 C2 Torrence... Real Property... $ 8,182,601 Cobalt Industries... Industrial Property... 6,160,802 Temperature Equipment Corp.... Heating, Air Conditioning Distributor... 5,018,870 Inland Real Estate... Commercial Property... 4,362,708 Tilland Partnership... Real Property... 3,000,754 NB Coatings... Plastic Automotive Coatings... 2,931,249 RIIP 1... Real Property... 2,793,690 Waterton Associates... Apartments... 2,712,941 Kmart... Retail Department Store... 2,402,572 IBPH LLC... Real Property... 2,395,885 Total... $39,962,072 Ten largest as a percent of the Village's 2013 EAV ($381,638,640) % Notes: (1) Source: Cook County Clerk. (2) Every effort has been made to seek 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 2013 EAV is the most current available. 11

15 Village of Lansing, Cook County, Illinois $7,615,000 General Obligation Refunding Bonds, Series 2014 Real Property Assessment REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES The County Assessor (the Assessor ) is responsible for the assessment of all taxable real property within Cook County (the County ), including that in the Village, 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 Village 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. 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. 12

16 Village of Lansing, Cook County, Illinois $7,615,000 General Obligation Refunding Bonds, Series 2014 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. 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