VILLAGE OF BRADLEY, ILLINOIS (Kankakee County) $4,475,000 GENERAL OBLIGATION SEWERAGE REFUNDING BONDS (ALTERNATE REVENUE SOURCE), SERIES 2015A

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1 New Issue - Book Entry Only Bank Qualified FINAL OFFICIAL STATEMENT DATED AUGUST 26, 2015 Rating: Standard & Poor's AA- (See Rating Herein) Subject to compliance by the Village with certain covenants, in the opinion of Chapman and Cutler LLP, Chicago, Illinois, 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. Dated: Date of Delivery VILLAGE OF BRADLEY, ILLINOIS (Kankakee County) $4,475,000 GENERAL OBLIGATION SEWERAGE REFUNDING BONDS (ALTERNATE REVENUE SOURCE), SERIES 2015A Due: December 1, as shown below PURPOSE/AUTHORITY/SECURITY: The $4,475,000 General Obligation Sewerage Refunding Bonds (Alternate Revenue Source), Series 2015A (the "Bonds" or "Obligations") are being issued by the Village of Bradley, Kankakee County, Illinois (the "Village") for the purpose of refunding certain obligations of the Village. 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 (a) together with the Village's outstanding General Obligation Sewerage Bonds (Alternate Revenue Source), Series 2006, from (i) net revenues of the Sewerage System (the "System") of the Village (after the required monthly deposits and credits have been made to certain prior lien accounts, if any, established pursuant to future ordinances of the Village authorizing sewerage revenue bonds), and (ii) the Village's distributive revenue share of receipts from State of Illinois income taxes imposed by the State of Illinois pursuant to the Illinois Income Tax Act and distributed pursuant to the State Revenue Sharing Act, and (b) from ad valorem property taxes as levied against all of the taxable property in the Village 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, moratorium, reorganization and other similar laws affecting rights and remedies of creditors and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. Delivery is subject to receipt of an approving legal opinion of Chapman and Cutler LLP, Chicago, Illinois. SERIAL MATURITIES: OPTIONAL REDEMPTION: INTEREST: PAYING AGENT: BOOK-ENTRY-ONLY: MUNICIPAL ADVISOR: December 1 as follows: CUSIP* Base Year Amount CUSIP* Base Year Amount Interest Rate Yield Interest Rate Yield 2016 $215, % 1.00% AX $300, % 2.75% BF , % 1.20% AY , % 2.85% BG , % 1.50% AZ , % 2.95% BH , % 1.65% BA , % 3.05% BJ , % 1.90% BB , % 3.15% BK , % 2.20% BC , % 3.25% BL , % 2.40% BD , % 3.35% BM , % 2.60% BE4 Bonds maturing December 1, 2024 and thereafter are subject to call for prior redemption on December 1, 2023 and any date thereafter, at par. June 1, 2016 and semiannually thereafter. Amalgamated Bank of Chicago, Chicago, Illinois See "Book-Entry-Only System" herein. Ehlers & Associates, Inc. The Bonds are offered, subject to prior sale, when, as and if accepted by the Underwriter named below and subject to an opinion as to the validity and tax exemption by Chapman and Cutler LLP, Chicago, Illinois, Bond Counsel, and certain other conditions. Chapman and Cutler LLP, Chicago, Illinois, will also act as Disclosure Counsel to the Village. It is expected that delivery of the Bonds will be made on or about September 23, 2015 against payment therefor. Subject to applicable securities laws and prevailing market conditions, the Underwriter intends, but is not obligated, to effect secondary market trading in the Bonds. For information with respect to the Underwriter, see "Underwriting" herein. * CUSIP data herein is provided by the CUSIP Global Services, managed on behalf of the American Bankers Association by S&P Capital IQ, a part of McGraw-Hill Companies Financial. No representations are made as to the correctness of the CUSIP numbers. These CUSIP numbers may also be subject to change after the issuance of the Bonds. i

2 REPRESENTATIONS No dealer, broker, salesperson or other person has been authorized by the Village to give any information or to make any representation other than those contained in the Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized by the Village. This Official Statement does not constitute an offer to sell or solicitation of an offer to buy any of the Obligations in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction. This Official Statement is not to be construed as a contract with the Underwriter. Statements contained herein which involve estimates or matters of opinion are intended solely as such and are not to be construed as representations of fact. Ehlers & Associates, Inc. prepared this Official Statement and any addenda thereto relying on information of the Village and other sources for which there is reasonable basis for believing the information is accurate and complete. Compensation of Ehlers & Associates, Inc., payable entirely by the Village, is contingent upon the sale of the issue. The information set forth herein has been obtained from the Village and from other sources, which are believed to be reliable, but such information is not guaranteed as to accuracy or completeness and is not to be construed as a representation by the Underwriter. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Village since the date as of which information is given in this Official Statement. The information contained in this Official Statement is tentative and subject to completion, amendment, or other change without notice. Certain terms and conditions described herein are subject to further negotiation. The Village reserves the right to withdraw, amend or modify the terms and conditions of this proposed financing at any time without any notice. Any statements made in this Official Statement, including the Appendices, involving matters of opinion or estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of such estimates will be realized. This Official Statement contains certain forward-looking statements and information that was based on the Village s beliefs as well as assumptions make by and information currently available to the Village. Such statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 NOR HAS THE BOND ORDINANCE BEEN QUALIFIED UNDER THE TRUST INDENTURE ACT OF 1939 IN RELIANCE UPON EXEMPTIONS CONTAINED IN SUCH ACTS. THE REGISTRATION OR QUALIFICATION OF THE BONDS IN ACCORDANCE WITH THE APPLICABLE PROVISIONS OF SECURITIES LAWS OF THE STATES IN WHICH THE BONDS HAVE BEEN REGISTERED OR QUALIFIED AND THE EXEMPTION FROM REGISTRATION OR QUALIFICATION IN OTHER STATES CANNOT BE REGARDED AS A RECOMMENDATION THEREOF. NEITHER THESE STATES NOR ANY OF THEIR AGENCIES HAVE RECOMMENDATION THEREOF. NEITHER THESE STATES NOR ANY OF THEIR AGENCIES HAVE PASSED UPON THE MERITS OF THE BONDS OR THE ACCURACY OR COMPLETENESS OF THIS OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE. CERTAIN PERSONS PARTICIPATING IN THIS OFFERING MAY ENGAGE IN TRANSACTIONS THAT MAINTAIN OR OTHERWISE AFFECT THE PRICE OF THE BONDS, SPECIFICALLY, THE UNDERWRITER MAY OVERALLOT IN CONNECTION WITH THE OFFERING, AND MAY BID FOR, AND PURCHASE, THE BONDS IN THE OPEN MARKET. THE PRICES AND OTHER TERMS RESPECTING THE OFFERING AND SALE OF THE BONDS MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER AFTER THE BONDS ARE RELEASED FOR SALE, AND THE BONDS MAYBE OFFERED AND SOLD AT PRICES OTHER THAN THE INITIAL OFFERING PRICES, INCLUDING SALES TO DEALERS WHO MAY SELL THE BONDS INTO INVESTMENT ACCOUNTS. ii

3 TABLE OF CONTENTS INTRODUCTORY STATEMENT... 1 THE BONDS... 1 GENERAL... 1 OPTIONAL REDEMPTION... 2 AUTHORITY; PURPOSE... 3 SOURCES AND USES... 4 SECURITY... 4 RATING CONTINUING DISCLOSURE LEGAL OPINION TAX EXEMPTION QUALIFIED TAX-EXEMPT OBLIGATIONS CERTAIN LEGAL MATTERS MUNICIPAL ADVISOR MUNICIPAL ADVISOR AFFILIATED COMPANIES UNDERWRITING RISK FACTORS THE VILLAGE VILLAGE INFORMATION EMPLOYEES; PENSIONS AND UNIONS LIABILITIES FOR OTHER POST EMPLOYMENT BENEFITS LITIGATION SUMMARY GENERAL FUND INFORMATION 39 SUMMARY OF SEWER FUND INFORMATION 40 FISCAL YEAR UPDATE FUNDS ON HAND LARGER EMPLOYERS U.S. CENSUS DATA EMPLOYMENT AUDITED FINANCIAL STATEMENTS... A-1 FORM OF LEGAL OPINION... B-1 BOOK-ENTRY-ONLY SYSTEM... C-1 ILLINOIS PROPERTY VALUATIONS PROPERTY TAX ASSESSMENT CURRENT PROPERTY VALUATIONS EQUALIZED ASSESSED VALUE BY CLASSIFICATION TREND OF VALUATIONS LARGER TAXPAYERS DEBT DIRECT GENERAL OBLIGATION DEBT OTHER OBLIGATIONS GENERAL OBLIGATION DEBT LIMIT SCHEDULE OF BONDED INDEBTEDNESS OVERLAPPING DEBT DEBT RATIOS DEBT PAYMENT HISTORY FUTURE FINANCING SHORT TERM BORROWING TAX LEVIES, COLLECTIONS, AND TAX RATES TAX LEVIES AND COLLECTIONS VILLAGE TAX RATES TYPICAL TAX BILL iii

4 BOARD OF TRUSTEES Term Expires Bruce Adams Village President May 2017 Gerald Balthazor Trustee May 2019 Robert Redmond Trustee May 2017 Lori Gadbois Trustee May 2019 Eric Cyr Trustee May 2017 Melissa Carrico Trustee May 2017 Michael Watson Trustee May 2019 Michael J. LaGesse, Village Clerk ADMINISTRATION Mark Pries, Finance Director/Treasurer PROFESSIONAL SERVICES James Rowe, Village Attorney, Chicago, Illinois Chapman and Cutler LLP, Bond Counsel, Chicago, IL Chapman and Cutler LLP, Disclosure Counsel, Chicago, IL Ehlers & Associates, Inc., Municipal Advisors, Chicago, IL (Other offices located in Roseville, MN, Pewaukee, WI and Denver, CO) iv

5 INTRODUCTORY STATEMENT This Official Statement contains certain information regarding the Village of Bradley, Illinois (the "Village") and the issuance of its $4,475,000 General Obligation Sewerage Refunding Bonds (Alternate Revenue Source), 2015A (the "Bonds"). Any descriptions or summaries of the Bonds, statutes, or documents included herein are not intended to be complete and are qualified in their entirety by reference to such statutes and documents and the form of the Bonds to be included in the ordinance authorizing the sale of the Bonds, as supplemented by a notification of sale ("together, the Bond Ordinance") adopted by the President and Board of Trustees (the Village Board ) on August 10, This Official Statement also contains forward-looking statements that are based upon the Village s current expectations and its projections about future events. When used in this Official Statement, the words project, estimate, intend, expect, scheduled, pro-forma and similar words identify forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and factors that are outside of the control of the Village. Actual results could differ materially from those contemplated by the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Neither the Village nor any other party plans to issue any updates or revisions to these forwardlooking statements based on future events. Inquiries may be directed to Ehlers & Associates, Inc. ("Ehlers" or the "Municipal Advisor"), Chicago, IL, (312) , the Village's Municipal Advisor. A copy of this Official Statement may be downloaded from Ehlers web site at by connecting to the link to the Bond Sales and following the directions at the top of the site. GENERAL THE BONDS The Bonds will be issued in fully registered form as to both principal and interest in denominations of $5,000 each or any integral multiple thereof, and will be dated, as originally issued, on or about September 23, The Bonds will mature on December 1 in the years and amounts set forth on the cover of this Official Statement. Interest will be payable on June 1 and December 1 of each year, commencing June 1, 2016, to the registered owners of the Bonds appearing of record in the bond register as of the close of business on the 15th day (whether or not a business day) of the immediately preceding month. Interest will be computed upon the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. Unless otherwise specified by the purchaser the Bonds will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ("DTC"). (See "Book-Entry-Only System" herein.) As long as the Bonds are held under the book-entry system, beneficial ownership interests in the Bonds may be acquired in book-entry form only, and all payments of principal of, premium, if any, and interest on the Bonds shall be made through the facilities of DTC and its Participants. If the book-entry system is terminated, principal of, and interest on the Bonds shall be payable as provided in the Bond Ordinance. 1

6 The Village has selected Amalgamated Bank of Chicago, Chicago, IL, to act as bond register and paying agent (the Paying Agent ). The Village will pay the charges for Paying Agent services. The Village reserves the right to remove the Paying Agent and to appoint a successor. The Paying Agent will maintain books for the registration of ownership and transfer of the Bonds. Subject to the provisions of the Bonds as they relate to book-entry form, any Bond may be transferred upon the surrender thereof at the principal corporate trust office of the Paying Agent, together with an assignment duly executed by the registered owner or his or her attorney in such form as will be satisfactory to the Paying Agent. No service charge shall be made for any transfer or exchange of Bonds, but the Village or the Paying Agent may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds except in the case of the issuance of a Bond or Bonds for the unredeemed portion of a Bond surrendered for redemption. OPTIONAL REDEMPTION At the option of the Village, Bonds maturing on or after December 1, 2024 shall be subject to redemption prior to maturity on December 1, 2023 and on any date thereafter, at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to redemption. If redemption is in part, the selection of the amounts and maturities of the Bonds to be redeemed shall be at the discretion of the Village. If only part of the Bonds having a common maturity date are called for redemption, the Village or Bond Registrar will notify DTC of the particular amount of such maturity to be redeemed. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interest in such maturity to be redeemed. Notice of such call shall be given by mailing a notice not more than 60 days and not less than 30 days prior to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the registration books. Unless moneys sufficient to pay the redemption price of the Bonds to be redeemed are received by the Paying Agent prior to the giving of a notice of redemption, such notice may, at the option of the Village, state that said redemption will be conditional upon the receipt of such moneys by the Paying Agent on or prior to the date fixed for redemption. If such moneys are not received, such notice will be of no force and effect, the Village will not redeem such Bonds, and the Paying Agent will give notice, in the same manner in which the notice of redemption has been given, that such moneys were not so received and that such Bonds will not be redeemed. Otherwise, prior to any redemption date, the Village will deposit with the Paying Agent an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to be redeemed on the date. Subject to the provisions for a conditional redemption described above, notice of redemption having been given and described above and in the Bond Ordinance, the Bonds or portions of Bonds so to be redeemed will, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the Village shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds will be paid by the Paying Agent at the redemption price. 2

7 AUTHORITY; PURPOSE The Bonds are issued pursuant to the Local Government Debt Reform Act of the State of Illinois, as amended (the Debt Reform Act ), the Illinois Municipal Code, as supplemented and amended and the Bond Ordinance. A portion of the proceeds of the Bonds will be used to refund (the Refunding ) a portion of the Village's outstanding General Obligation Sewerage Bonds (Alternate Revenue Source), Series 2006, dated March 15, 2006 (the 2006 Bonds, and the 2006 Bonds being refunded, the Refunded Bonds ) as follows: Maturities Being Refunded Principal to be Refunded CUSIP Base Date of Refunded Call Date Call Price Interest Rates Issue Being Refunded Issue * 2006 Bonds 3/15/ /1/2015 Par % $230,000 AK % 240,000 AL % 250,000 AM % 260,000 AN % 270,000 AP % 280,000 AQ % 290,000 AR % 305,000 AS % 315,000 AT % 330,000 AU % 340,000 AV7 Term % 1,520,000 AW5 Total Refunded Bonds $4,630,000 Proceeds received from the sale of the Bonds will be deposited with the paying agent for the 2006 Bonds. The moneys so deposited will be held in cash and will be sufficient to pay when due the principal of and interest on the Refunded Bonds upon redemption prior to maturity. The purpose of the Refunding is to achieve debt service savings for the Village. *The December 2015 maturity is to be paid by the Village on December 1,

8 SOURCES AND USES Sources Uses Par Amount of Bonds $4,475,000 Reoffering Premium 250,401 Total Sources $4,725,401 Amount Needed for Refunding $4,630,000 Underwriter s Discount 36,919 Costs of Issuance 58,482 Total Uses $4,725,401 SECURITY DEFINITIONS The following words and terms used in this Official Statement shall have the following meanings unless the context or use clearly indicates another or different meaning is intended: Bond Fund means the 2015A Alternate Bond Fund of the Village established by the Bond Ordinance. Fund means the Sewerage Revenue Fund of the Village heretofore established and continued by the Bond Ordinance. General Account means the General Account of the Bond Fund. Junior Bonds means any bonds payable from the Junior Bond and Interest Account of the Fund, including the Bonds. Maximum Annual Debt Service, when used with reference to Senior Bonds or Junior Bonds, respectively, means an amount of money equal to the highest future principal and interest requirement of all outstanding Senior Bonds or outstanding Junior Bonds, as applicable, required to be deposited into the Senior Bond and Interest Account or the Junior Bond and Interest Account of the Fund, as applicable, or payable from Revenue Sharing Receipts, in any fiscal year, including and subsequent to the fiscal year in which the computation is made. Any outstanding bonds required to be redeemed pursuant to mandatory redemption shall be treated as falling due on the date required to be redeemed (except in the case of failure to make any such mandatory redemption) and not on the stated maturity date of such outstanding bonds. Operation and Maintenance Costs means all costs of operating, maintaining and routine repair of the System, including wages, salaries, costs of materials and supplies, power, fuel, insurance, taxes, including rebate of excess arbitrage profits to the U.S. government, and purchase of sewage treatment services (including all payments by the Village pursuant to long-term contracts for such services); but excluding debt service, depreciation, capital improvements or replacements (including meter replacements) or engineering expenses in anticipation thereof or in connection therewith, or any reserve requirements; and otherwise determined in accordance with generally accepted accounting principles for municipal enterprise funds. 4

9 Parity Bonds means any bonds or other obligations issued subsequent in time to the Bonds payable from, and sharing ratably and equally in, the Pledged Revenues with either Senior Bonds or Junior Bonds (with respect to the Revenues) and/or the Bonds (with respect to the Revenue Sharing Receipts), as set forth and provided for in such Parity Bonds. Revenue Sharing Receipts Account means the Revenue Sharing Receipts Account of the Bond Fund. Revenues means all income from whatever source derived from the System, including (a) investment income on all accounts of the Fund; (b) connection, permit and inspection fees and the like; penalties and delinquency charges; (d) capital development, reimbursement, or recovery charges and the like; and (e) annexation or pre-annexation charges insofar as designated by the Board as paid for System connection or service; but excluding expressly (I) non-recurring income from the sale of property of the System; (ii) governmental or other grants; (iii) advances or grants made from the Village; and as otherwise determined in accordance with generally accepted accounting principles for municipal enterprise funds. Senior Bonds means any bonds payable from the Senior Bond and Interest Account of the Fund. System means the Village s municipally-owned sewerage system. SECURITY 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 (a) together with the Village s outstanding General Obligation Sewerage Bonds (Alternate Revenue Source), Series 2006, from (i) the Revenues (after the payment of all Operation and Maintenance Costs and the making of any other required monthly deposits and credits to certain prior lien accounts of the Fund), and (ii) the Village s distributive revenue share of receipts from State of Illinois income taxes ( Revenue Sharing Receipts ) imposed by the Illinois Income Tax Act, as amended, and distributed pursuant to the State Revenue Sharing Act, as amended (collectively, the Pledged Revenues ) and (b) from ad valorem taxes levied against all of the taxable property in the Village without limitation as to rate or amount (the Pledged Taxes and, together with the Pledged Revenues, the Pledged Moneys ), except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting creditors rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. GENERAL COVENANTS REGARDING THE BONDS The Village has pledged the Revenues (after the payment of all Operation and Maintenance Costs and the making of any other required monthly deposits and credits to certain prior lien accounts of the Fund) to the payment of the Bonds, and the Board covenants and agrees to provide for, collect and apply Pledged Revenues to the payment of the Bonds and the provision of not less than an additional.25 times debt service. To the extent that the Revenues are not sufficient for such purpose, Revenue Sharing Receipts are also pledged to the payment of the Bonds, and the Board covenants and agrees to provide for, collect and apply the Revenue Sharing Receipts to the payment of the Bonds and the provision of not less than an additional.25 times debt service. There is no prior lien on or pledge of Revenue Sharing Receipts superior to that of the Bonds. The Village will punctually pay or cause to be paid from the Junior Bond and Interest Account and from the Bond Fund the principal of and interest on the Bonds in strict conformity with the terms of the Bonds and the Bond 5

10 Ordinance, and the Village will faithfully observe and perform all of the conditions, covenants and requirements thereof. The Village will pay and discharge, or cause to be paid and discharged, from the Junior Bond and Interest Account and the Bond Fund any and all lawful claims which, if unpaid, might become a lien or charge upon the Pledged Moneys, or any part thereof, or upon any funds in the hands of the Bond Registrar, or which might impair the security of the Bonds. The Village will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the Village, in which complete and correct entries shall be made of all transactions relating to the System, the Pledged Moneys, the Fund and the Bond Fund The Village will preserve and protect the security of the Bonds and the rights of the registered owners of the Bonds, and will warrant and defend their rights against all claims and demands of all persons. From and after the sale and delivery of any of the Bonds by the Village, the Bonds shall be incontestable by the Village. The Village will adopt, make, execute and deliver any and all such further ordinances, resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the intention of, or to facilitate the performance of, the Bond Ordinance, and for the better assuring and confirming unto the registered owners of the Bonds of the rights and benefits provided in the Bond Ordinance. As long as any Bonds are outstanding, the Village will continue to deposit and apply the Pledged Revenues and, if applicable, the Pledged Taxes, as provided in the Bond Ordinance. The Village covenants and agrees with the purchasers of the Bonds and with the registered owners thereof that, as long as any Bonds remain outstanding, the Village will take no action or fail to take any action which in any way would adversely affect the ability of the Village to levy the Pledged Taxes or collect and segregate the Pledged Moneys. The Village and its officers will comply with all present and future applicable laws in order to assure that the Pledged Taxes can be levied and extended and that the Revenues, the Revenue Sharing Receipts and the Pledged Taxes may be collected and deposited into the Fund and the Bond Fund (and to the credit of the respective accounts thereof), as provided in the Bond Ordinance. The outstanding Bonds shall be and forever remain until paid the general obligation of the Village, for the payment of which its full faith and credit are pledged, and shall be payable, from the Pledged Revenues, as provided in the Bond Ordinance, and from the levy of the Pledged Taxes as provided in the Debt Reform Act and the Bond Ordinance. The Village will maintain the System in good repair and working order, will operate the same efficiently and faithfully, and will punctually perform all duties with respect thereto required by state and federal law. The Village will establish and maintain at all times reasonable fees, charges, and rates for the use and service of the System and will provide for the collection, segregation and application of the Revenues in the manner provided by the Bond Ordinance, sufficient at all times to pay for the Operation and Maintenance Costs, to provide an adequate depreciation fund, to pay the principal of and interest on all bonds of the Village which by their terms are payable from the Revenues and to provide for the creation and maintenance and funding of the respective accounts of the Fund, as provided in the Bond Ordinance. The Village will charge all users of the System, including the Village, such rates and amounts for services as shall be adequate to meet the requirements of the Bond Ordinance. Charges for services rendered to the Village shall be 6

11 made against the Village, and payment for the same shall be made monthly from the corporate funds into the Fund, as Revenues; provided, however, that the Village need not charge itself for System services if in the previous fiscal year, Revenues, not including any payments made by the Village, met the requirements of the Bond Ordinance. Within six months following the close of each fiscal year, the Village will cause the books and accounts of the Fund to be audited by independent certified public accountants in accordance with appropriate audit standards. Such audit will be available for inspection by the registered owners of any of the Bonds. FILING WITH COUNTY CLERK The Bond Ordinance provides for the levy of the Pledged Taxes in amounts sufficient to pay, as and when due, all principal of and interest on the Bonds. The Bond Ordinance will be filed with the County Clerk of Kankakee County, Illinois (the County Clerk ), and will serve as authorization to the County Clerk to extend and collect the Pledged Taxes to pay the Bonds. When collected, the Pledged Taxes shall be deposited to the credit of the General Account. ABATEMENT OF PLEDGED TAXES Whenever Pledged Revenues or other lawfully available funds have been deposited into the Junior Bond and Interest Account and/or the Revenue Sharing Receipts Account to pay debt service on the Bonds in any year, the Board or the officers of the Village acting with proper authority, shall, prior to the time the Pledged Taxes levied to pay debt service on the Bonds in such year are extended, direct the abatement of such Pledged Taxes by the amount of such deposit or deposits, and proper notification of such abatement shall be filed with the County Clerk in a timely manner to effect such abatement. PARITY BONDS The Village may issue Parity Bonds payable solely from the Senior Bond and Interest Account, provided that the Revenues, as determined or as adjusted as herein below set out, shall be sufficient to provide for or pay all of the following: (a) Operation and Maintenance Costs (but not including depreciation), (b) debt service on all outstanding Bonds computed immediately after the issuance of the proposed Parity Bonds, (c) all amounts required to meet any fund or account requirements with respect to such outstanding Bonds, (d) other contractual or tort liability obligations then payable, if any, and (e) an additional amount not less than 0.25 times Maximum Annual Debt Service on such of the Bonds as shall remain outstanding Bonds after the issuance of the proposed Parity Bonds. Such sufficiency shall be demonstrated in each year to the final maturity of those Bonds which shall remain outstanding Bonds after the issuance of the proposed Parity Bonds. The determination of the sufficiency of Revenues shall be supported by reference to the most recent audit of the Fund from which the proposed Parity Bonds are to be payable, which audit shall be for a fiscal year ending not earlier than 18 months previous to the time of issuance of the proposed Parity Bonds. If such audit shows the Revenues to be insufficient, then the determination of sufficiency may be made in either of the following two ways: (A) The Revenues may be adjusted in the event there has been an increase in the rates of the System from the rates in effect for the fiscal year of such audit (if such rate increase is still in effect at the time of the issuance of such proposed Parity Bonds) to show such Revenues as they would have been if such increased rates had been in effect during all of said fiscal year. Any such adjusted statement of Revenues 7

12 shall be evidenced the certificate of an independent consulting engineer, an independent certified public accountant or an independent financial consultant employed for the purpose. (B) The determination of sufficiency of the Revenues may be supported by the report of an independent accountant or feasibility analyst having a national reputation for expertise in such matters, demonstrating the sufficiency of the Revenues and explaining by what means they will be greater than as shown in the audit. The reference to and acceptance of an audit, an adjusted statement of the Revenues or a report, as the case may be, and the determination of the Board of the sufficiency of Revenues shall be conclusive evidence that the conditions of the Bond Ordinance have been met and that the Parity Bonds are properly issued under the Bond Ordinance and the registered amount of the Bonds shall have no right to challenge such determination. The Village may also issue Parity Bonds payable from all or a portion of the Pledged Revenues on a parity with the Bonds; provided, however, that no such Parity Bonds shall be issued except in accordance with the provisions of the Debt Reform Act. Such Parity Bonds will share ratably and equally in such Pledged Revenues with the Bonds. TREATMENT OF BONDS AS DEBT The Bonds will be payable from the Pledged Moneys and will not constitute an indebtedness of the Village within the meaning of any constitutional or statutory limitation, unless the Pledged Taxes will have been extended pursuant to the general obligation, full faith and credit promise supporting the Bonds, in which case the amount of the outstanding Bonds will be included in the computation of indebtedness of the Village for purposes of all statutory provisions or limitations until such time as an audit of the Village shows that the Bonds have been paid from the Pledged Revenues for a complete fiscal year, in accordance with the Debt Reform Act. In each of the last several years, the pledged taxes supporting the 2006 Bonds have been extended for payment of the 2006 Bonds. As such, the 2006 Bonds not being refunded by the Bonds are included in the computation of indebtedness of the Village for purposes of all statutory provisions or limitations. See DEBT - General Obligations Debt Limit herein. DEBT SERVICE COVERAGE REVENUE SHARING RECEIPTS MAXIMUM ANNUAL DEBT SERVICE ON THE BONDS DEBT SERVICE COVERAGE FISCAL YEAR (1) NET REVENUES (2) 2014 $764,035 $1,515,292 $400, x (1) Source: Village audit for fiscal year ending April 30, 2014 (2) Includes property taxes in the amount of $284,744, tap-on-fees $70,900 and $476 interest income. SEWERAGE FUND AND ACCOUNTS; FLOW OF FUNDS The System shall continue to be operated on a fiscal year basis. All of the Revenues shall be set aside as collected and be deposited into the Fund, and which fund constitutes a trust fund for the sole purpose of carrying out the covenants, terms, and conditions of the Bond Ordinance and any ordinances providing for the issuance of Parity Bonds. The Bond Ordinance continues the separate accounts of the Fund known as the Operation and Maintenance 8

13 Account, the Senior Bond and Interest Account, the Senior Bond Reserve Account, the Junior Bond and Interest Account, the Junior Bond Reserve Account, the Depreciation, Repair and Replacement, and Improvement Account, and the Surplus Account, to which there shall be credited on a given day of each month as selected by the Village Treasurer of the Village, without any further official action or direction, in the order in which said accounts are hereinafter mentioned, all moneys held in each such fund, in accordance with the following provisions: Operation and Maintenance Account. There shall be credited to the Operation and Maintenance Account an amount sufficient, when added to the amount then on deposit in said account, to establish a balance to an amount not less than the amount necessary to pay Operation and Maintenance Costs for the then current month and up to the time of the next monthly accounting for moneys and crediting to accounts. Amounts in said account shall be used to pay such Operation and Maintenance Costs. Senior Bond and Interest Account. There shall next be credited to the Senior Bond and Interest Account and held, in cash and investments, a fractional amount of the interest becoming due on the next succeeding interest payment date on all outstanding Senior Bonds payable from such account and also a fractional amount of the principal becoming due or subject to mandatory redemption on the next succeeding principal maturity or mandatory redemption date of all of the outstanding Senior Bonds payable from such account until there shall have been accumulated and held, in cash and investments, in the Senior Bond and Interest Account in or before the month preceding such maturity date of interest or maturity or mandatory redemption date of principal, an amount sufficient to pay such principal or interest, or both. All moneys in said account shall be used only for the purpose of paying interest on and principal of such outstanding Senior Bonds. Currently, there are no Senior Bonds. Senior Bond Reserve Account. There shall next be credited to the Senior Bond Reserve Account and held, in cash and investments or as otherwise provided, such amount or amounts at such times as may be required in the applicable ordinance or ordinances by which outstanding Senior Bonds are authorized and issued. Amounts to the credit of the Senior Bond Reserve Account shall be used to pay principal of or interest on the such outstanding Senior Bonds at any time when there are insufficient funds available in the Senior Bond and Interest Account to pay the same as may be provided in the applicable ordinances and shall be transferred to said account for said purpose. Junior Bond and Interest Account. There next shall be credited to the Junior Bond and Interest Account and held, in cash and investments, a fractional amount of the interest becoming due on the next succeeding interest payment date on all outstanding Junior Bonds payable from such account and also a fractional amount of the principal becoming due or subject to mandatory redemption on the next succeeding principal maturity or mandatory redemption date of all of the outstanding Junior Bonds payable from such account until there shall have been accumulated and held, in cash and investments, in the Junior Bond and Interest Account in or before the month preceding such maturity date of interest or maturity or mandatory redemption date of principal, an amount sufficient to pay such principal or interest, or both. In computing the fractional amount to be set aside each month in the Junior Bond and Interest Account, the fraction shall be so computed that a sufficient amount will be set aside in said account and will be available for the prompt payment of such principal of and interest on all outstanding Junior Bonds payable from such account and shall be not less than 1/6 of the interest becoming due on the next succeeding interest payment date and not less than 1/12 of the principal becoming due or subject to mandatory redemption on the next succeeding principal payment or mandatory redemption date on all outstanding Junior Bonds payable from such account until there is sufficient money in said account to pay such principal or interest, or both. 9

14 All moneys in said account shall be used only for the purpose of paying interest on and principal of such outstanding Junior Bonds. The Bonds constitute the only outstanding Junior Bonds. Such moneys as are sufficient to make payments of principal of and interest on the Bonds when due, along with any fees then due, shall be transferred from this account to the Bond Registrar not less than five days prior to the pertinent principal or interest payment date. Junior Bond Reserve Account. There shall next be credited to the Junior Bond Reserve Account and held, in cash and investments or as otherwise provided, such amount or amounts at such times as may be required in the applicable ordinance or ordinances by which outstanding Junior Bonds are authorized and issued. Amounts to the credit of the Junior Bond Reserve Account shall be used to pay principal of or interest on the such outstanding Junior Bonds of the System at any time when there are insufficient funds available in the Junior Bond and Interest Account to pay the same as may be provided in the applicable ordinances and shall be transferred to said account for said purpose. Depreciation, Repair and Replacement, and Improvement Account. There shall be next credited to the Depreciation, Repair and Replacement, and Improvement Account and held, in cash and investments, an amount each month as shall be determined by the Board as sufficient and proper for the purposes of this account as herein below set forth. Amounts to the credit of said Depreciation, Repair and Replacement, and Improvement Account shall be used as follows: (I) for the payment of the cost of extraordinary maintenance, necessary repairs and replacements, or contingencies, or for improvements, repairs or replacements to the System required by any agency of the State of Illinois or the United States Government, the payment for which no other funds are available, in order that the System may at all times be able to render efficient service; (ii) as budgeted from time to time, and provided the Board has determined that the amount otherwise on deposit to the credit of this account is sufficient at such time for the purposes set forth in clause (I) immediately preceding, for the payment of the costs of constructing and acquiring improvements and extensions to the System; and (iii) for the payment of principal of or interest on any outstanding bonds payable from the Revenues at any time when there are no other funds available for that purpose in order to prevent a default and shall be transferred to the appropriate bond and interest account for such purpose. Whenever an amount is withdrawn from such account for the purpose stated in clause (iii) of the preceding paragraph, the amount so transferred shall be added to the amount to be next and thereafter credited to this account until full reimbursement to the account has been made. Surplus Account. All moneys remaining in the Fund, after crediting the required amounts to the respective accounts herein above provided for, and after making up any deficiency in the accounts described above shall be credited each month to the Surplus Account. The remainder of all surplus Revenues, at the discretion of the Board, shall be used for one or more of the following purposes without any priority among them: 1. For the purpose of constructing or acquiring repairs, replacements, improvements or extensions to the System; or 2. For making transfers to the Fund generally to be applied and treated as Revenues when transferred; or 3. For the purpose of calling and redeeming outstanding Bonds payable from the System which are callable at the time; or 10

15 4. For the purpose of purchasing outstanding Bonds payable from the System; or 5. For the purpose of paying principal of and interest on any subordinate bonds or obligations issued for the purpose of acquiring or constructing repairs, replacements, improvements or extensions to the System; or 6. For transfer to the corporate fund of the Village in an amount equal to 7-1/2% of Revenues (or other percentage as determined by the Board) as a deemed return on investment and as a reimbursement for administrative expenses and general overhead; or 7. For any other lawful corporate purpose. RATING General obligation debt of the Village, including the Bonds, is currently rated AA- by Standard & Poor's ( S&P ). The rating reflects only the view of the rating agency and any explanation of the significance of such rating may only be obtained from Standard & Poor's. There is no assurance that such rating, if and when received, will continue for any period of time or that it will not be revised or withdrawn. Any revision or withdrawal of the rating may have an effect on the market price of the Bonds. CONTINUING DISCLOSURE The Village will enter into a Continuing Disclosure Undertaking (the Undertaking ) for the benefit of the beneficial owners of the Bonds to send certain information annually and to provide notice of certain events to the Municipal Securities Rulemaking Board (the MSRB ) pursuant to the requirements of the Rule. No person, other than the Village, has undertaken, or is otherwise expected, to provide continuing disclosure with respect to the Bonds. The information to be provided on an annual basis, the events which will be noticed on an occurrence basis and a statement of other terms of the Undertaking, including termination, amendment and remedies, are set forth in this Section. The Village failed to timely file its audited financial statements for the fiscal years ending April 30, 2010, 2011 and 2012, as required by a previous continuing disclosure undertaking. A failure by the Village to comply with the Undertaking will not constitute a default under the Bond Ordinance and beneficial owners of the Bonds are limited to the remedies described in the Undertaking. The Village must report any failure to comply with the Undertaking in accordance with the Rule. Any broker, dealer or municipal securities dealer must consider such report before recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market price. The following is a brief summary of certain provisions of the Undertaking of the Village and does not purport to be complete. The statements made under this caption are subject to the detailed provisions of the Undertaking, a copy of which is available upon request from the Village. ANNUAL FINANCIAL INFORMATION DISCLOSURE The Village covenants that it will disseminate its Annual Financial Information and its Audited Financial Statements, if any (as described below), to the MSRB in such manner and format and accompanied by identifying information as is prescribed by the MSRB or the Commission at the time of delivery of such information. The Village is required 11

16 to deliver such information so that such entities receive the information by 210 days after the last day of the Village s fiscal year (currently April 30). If the Audited Financial Statements are not available when the Annual Financial Information is filed, the Village will file the unaudited financial statements. MSRB Rule G-32 requires all Electronic Municipal Market Access ("EMMA") filings to be in word-searchable PDF format. This requirement extends to all documents to be filed with EMMA, including financial statements and other externally prepared reports. Annual Financial Information means information of the type contained in the following headings and exhibits of the Final Official Statement: - Current Property Valuations - Equalized Assessed Value by Classification - Trend of Valuations - Larger Taxpayers - Direct General Obligation Bonded Debt - Other Obligations - General Obligation Debt Limit - Schedule of Bonded Indebtedness - Debt Ratios (related to Direct Debt only) - Tax Levies and Collections - Village Tax Rates - Typical Tax Bill - Summary General Fund Information - Summary Sewer Fund Information Audited Financial Statements means the combined financial statements of the Village prepared in accordance with accounting principles generally accepted in the United States of America. REPORTABLE EVENTS DISCLOSURE The Village covenants that it will disseminate in a timely manner (not in excess of ten business days after the occurrence of the Reportable Event) Reportable Events Disclosure to the MSRB in such manner and format and accompanied by identifying information as is prescribed by the MSRB or the Commission at the time of delivery of such information. MSRB Rule G-32 requires all EMMA filings to be in word-searchable PDF format. This requirement extends to all documents to be filed with EMMA, including financial statements and other externally prepared reports. The "Events" are: Principal and interest payment delinquencies Non-payment related defaults, if material Unscheduled draws on debt service reserves reflecting financial difficulties Unscheduled draws on credit enhancements reflecting financial difficulties Substitution of credit or liquidity providers, or their failure to perform Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security Modifications to the rights of security holders, if material Bond calls, if material, and tender offers Defeasances Release, substitution or sale of property securing repayment of the securities, if material 12

17 Rating changes Bankruptcy, insolvency, receivership or similar event of the Village* The consummation of a merger, consolidation, or acquisition involving the Village or the sale of all or substantially all of the assets of the Village, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material Appointment of a successor or additional trustee or the change of name of a trustee, if material * This event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the Village in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the Village, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the Village. CONSEQUENCES OF FAILURE OF THE VILLAGE TO PROVIDE INFORMATION The Village shall give notice in a timely manner to the MSRB of any failure to provide disclosure of Annual Financial Information and Audited Financial Statements when the same are due under the Undertaking. In the event of a failure of the Village to comply with any provision of the Undertaking, the beneficial owner of any Bond may seek mandamus or specific performance by court order, to cause the Village to comply with its obligations under the Undertaking. A default under the Undertaking shall not be deemed a default under the Bond Ordinance, and the sole remedy under the Undertaking in the event of any failure of the Village to comply with the Undertaking shall be an action to compel performance. AMENDMENT; WAIVER Notwithstanding any other provisions of the Undertaking, the Village by ordinance authorizing such amendment or waiver, may amend the Undertaking, and any provision of the Undertaking may be waived, if: (a) (i) The amendment or the waiver is made in connection with a change in circumstances that arises from a change in legal requirements including, without limitation, pursuant to a "no-action" letter issued by the Commission, a change in law, or a change in the identity, nature, or status of the Village, or type of business conducted; (ii) The Undertaking, as amended, or the provision, as waived, would have complied with the requirements of the Rule at the time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (b) The amendment or waiver does not materially impair the interest of the beneficial owners of the Bonds, as determined by parties unaffiliated with the Village (such as Bond Counsel). 13

18 In the event that the Commission or the MSRB or other regulatory authority approves or requires Annual Financial Information or notices of a Reportable Event to be filed with a central post office, governmental agency or similar entity other than the MSRB or in lieu of the MSRB, the Village shall, if required, make such dissemination to such central post office, governmental agency or similar entity without the necessity of amending the Undertaking. TERMINATION OF UNDERTAKING The Undertaking shall be terminated if the Village shall no longer have any legal liability for any obligation on or relating to repayment of the Bonds under the Bond Ordinance. The Village shall give notice the MSRB in a timely manner if this paragraph is applicable. ADDITIONAL INFORMATION Nothing in the Undertaking shall be deemed to prevent the Village from disseminating any other information, using the means of dissemination set forth in the Undertaking or any other means of communication, or including any other information in any Annual Financial Information or Audited Financial Statements or notice of occurrence of a Reportable Event, in addition to that which is required by the Undertaking. If the Village chooses to include any information from any document or notice of occurrence of a Reportable Event in addition to that which is specifically required by the Undertaking, the Village shall have no obligation under the Undertaking to update such information or include it in any future disclosure notice of occurrence of a Reportable Event. DISSEMINATION OF INFORMATION; DISSEMINATION AGENT When filings are required to be made with the MSRB in accordance with the Undertaking, such filings are required to be made through its EMMA system for municipal securities disclosure or through any other electronic format or system prescribed by the MSRB for purposes of the Rule. The Village may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under the Undertaking, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The Annual Financial Statements for fiscal years ending April 30, 2010 and April 30, 2011 were not filed until December 21, 2012 which is past the required deadline. A failure notice was filed on January 23, The Village has engaged Ehlers and Associates as dissemination agent. Except to the extent the preceding is deemed to be material by the Securities and Exchange Commission, in the past five years the Village believes it has complied in all material respects with its prior undertakings under the Rule. LEGAL OPINION An opinion as to the validity of the Bonds and the exemption from federal taxation of the interest thereon will be furnished by Chapman and Cutler LLP, Chicago, Illinois, bond counsel to the Village, and will accompany the Bonds. See Appendix B - FORM OF LEGAL OPINION. 14

19 TAX EXEMPTION Federal tax law contains a number of requirements and restrictions which apply to the Bonds, including investment restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the proper use of bond proceeds and the facilities financed therewith, and certain other matters. The Village has covenanted to comply with all requirements that must be satisfied in order for the interest on the Bonds to be excludable from gross income for federal income tax purposes. Failure to comply with certain of such covenants could cause interest on the Bonds to become includible in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds. Subject to the Village's compliance with the above referenced covenants, under present law, in the opinion of Bond Counsel, interest on the Bonds is excludable from the gross income of the owners thereof for federal income tax purposes, and is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations, but interest on the Bonds is taken into account, however, in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. In rendering its opinion, Bond Counsel will rely upon certifications of the Village with respect to certain material facts within the Village's knowledge. Bond Counsel s opinion represents its legal judgment based upon its review of the law and the facts that it deems relevant to render such opinion and is not a guarantee of a result. The Internal Revenue Code of 1986, as amended (the Code ) includes provisions for an alternative minimum tax ("AMT") for corporations in addition to the regular corporate tax in certain cases. The AMT, if any, depends upon the corporation's alternative minimum taxable income ("AMTI"), which is the corporation's taxable income with certain adjustments. One of the adjustment items used in computing the AMTI of a corporation (with certain exceptions) is an amount equal to 75% of the excess of such corporation's "adjusted current earnings" over an amount equal to its AMTI (before such adjustment item and the alternative tax net operating loss deduction). "Adjusted current earnings" would include certain tax exempt interest, including interest on the Bonds. Ownership of the Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, corporations subject to the branch profits tax, financial institutions, certain insurance companies, certain S corporations, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or continued) indebtedness to purchase or carry tax-exempt obligations. Prospective purchasers of the Bonds should consult their tax advisors as to the applicability of any such collateral consequences. The issue price (the "Issue Price") for each maturity of the Bonds is the price at which a substantial amount of such maturity of the Bonds is first sold to the public. The Issue Price of a maturity of the Bonds may be different from the price set forth, or the price corresponding to the yield set forth, on the cover page hereof. If the Issue Price of a maturity of the Bonds is less than the principal amount payable at maturity, the difference between the Issue Price of each such maturity, if any, of the Bonds (the "OID Bonds") and the principal amount payable at maturity is original issue discount. For an investor who purchases an OID Bond in the initial public offering at the Issue Price for such maturity and who holds such OID Bond to its stated maturity, subject to the condition that the Village complies with the covenants discussed above, (a) the full amount of original issue discount with respect to such OID Bond constitutes interest which is excludable from the gross income of the owner thereof for federal income tax purposes; (b) such owner will not realize taxable capital gain or market discount upon payment of such OID Bond at its stated maturity; (c) such original issue discount is not included as an item of tax preference in computing the alternative minimum tax for 15

20 individuals and corporations under the Code, but is taken into account in computing an adjustment used in determining the alternative minimum tax for certain corporations under the Code, as described above; and (d) the accretion of original issue discount in each year may result in an alternative minimum tax liability for corporations or certain other collateral federal income tax consequences in each year even though a corresponding cash payment may not be received until a later year. Based upon the stated position of the Illinois Department of Revenue under Illinois income tax law, accreted original issue discount on such OID Bonds is subject to taxation as it accretes, even though there may not be a corresponding cash payment until a later year. Owners of OID Bonds should consult their own tax advisors with respect to the state and local tax consequences of original issue discount on such OID Bonds. Owners of the Bonds who dispose of Bonds prior to the stated maturity (whether by sale, redemption or otherwise), purchase Bonds in the initial public offering, but at a price different from the Issue Price or purchase Bonds subsequent to the initial public offering should consult their own tax advisors. If a Bond is purchased at any time for a price that is less than the Bond s stated redemption price at maturity or, in the case of an OID Bond, its Issue Price plus accreted original issue discount (the "Revised Issue Price"), the purchaser will be treated as having purchased a Bond with market discount subject to the market discount rules of the Code (unless a statutory de minimis rule applies). Accrued market discount is treated as taxable ordinary income and is recognized when a Bond is disposed of (to the extent such accrued discount does not exceed gain realized) or, at the purchaser's election, as it accrues. Such treatment would apply to any purchaser who purchases an OID Bond for a price that is less than its Revised Issue Price. The applicability of the market discount rules may adversely affect the liquidity or secondary market price of such Bond. Purchasers should consult their own tax advisors regarding the potential implications of market discount with respect to the Bonds. An investor may purchase a Bond at a price in excess of its stated principal amount. Such excess is characterized for federal income tax purposes as "bond premium" and must be amortized by an investor on a constant yield basis over the remaining term of the Bond in a manner that takes into account potential call dates and call prices. An investor cannot deduct amortized bond premium relating to a tax-exempt bond. The amortized bond premium is treated as a reduction in the tax-exempt interest received. As bond premium is amortized, it reduces the investor s basis in the Bond. Investors who purchase a Bond at a premium should consult their own tax advisors regarding the amortization of bond premium and its effect on the Bond s basis for purposes of computing gain or loss in connection with the sale, exchange, redemption or early retirement of the Bonds. There are or may be pending in the Congress of the United States legislative proposals, including some that carry retroactive effective dates, that, if enacted, could alter or amend the federal tax matters referred to above or affect the market value of the Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or whether, if enacted, it would apply to bonds issued prior to enactment. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal tax legislation. Bond Counsel expresses no opinion regarding any pending or proposed federal tax legislation. The Internal Revenue Service (the Service ) has an ongoing program of auditing tax-exempt obligations to determine whether, in the view of the Service, interest on such tax-exempt obligations is includible in the gross income of the owners thereof for federal income tax purposes. It cannot be predicted whether or not the Service will commence an audit of the Bonds. If an audit is commenced, under current procedures the Service may treat the Village as a taxpayer and the Bondholders may have no right to participate in such procedure. The commencement of an audit could adversely affect the market value and liquidity of the Bonds until the audit is concluded, regardless of the ultimate outcome. 16

21 Payments of interest on, and proceeds of the sale, redemption or maturity of, tax-exempt obligations, including the Bonds, are in certain cases required to be reported to the Service. Additionally, backup withholding may apply to any such payments to any Bond owner who fails to provide an accurate Form W-9 Request for Taxpayer Identification and Certification, or a substantially identical form, or to any Bond owner who is notified by the Service of a failure to report any interest or dividends required to be shown on federal income tax returns. The reporting and backup withholding requirements do not affect the excludability of such interest from gross income for federal tax purposes. Interest on the Bonds is not exempt from present State of Illinois income taxes. Ownership of the Bonds may result in other state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such collateral consequences arising with respect to the Bonds. Prospective purchasers of the Bonds should consult their tax advisors regarding the applicability of any such state and local taxes. QUALIFIED TAX-EXEMPT OBLIGATIONS Subject to the Village s compliance with certain covenants, in the opinion of Bond Counsel, the Bonds are "qualified tax-exempt obligations under the small issuer exception provided under Section 265(b)(3) of the Code, which affords banks and certain other financial institutions more favorable treatment of their deduction for interest expense than would otherwise be allowed under Section 265(b)(2) of the Code. CERTAIN LEGAL MATTERS Certain legal matters incident to the authorization, issuance and sale of the Bonds are subject to the approving legal opinion of Chapman and Cutler LLP, Chicago, Illinois ( Chapman and Cutler ), Bond Counsel, who has been retained by, and acts as, Bond Counsel to the Village. Chapman and Cutler has also been retained by the Village to serve as Disclosure Counsel to the Village with respect to the Bonds. Although as Disclosure Counsel to the Village, Chapman and Cutler has assisted the Village with certain disclosure matters, Chapman and Cutler has not undertaken to independently verify the accuracy, completeness or fairness of this Official Statement or other offering material related to the Bonds and does not guarantee the accuracy, completeness or fairness of such information. Chapman and Cutler s engagement as Disclosure Counsel was undertaken solely at the request and for the benefit of the Village, to assist it in discharging its responsibility with respect to the Official Statement, and not for the benefit of any other person (including any person purchasing Bonds from the Underwriter), and did not include any obligation to establish or confirm factual matters, forecasts, projections, estimates or any other financial or economic information in connection therewith. Further, Chapman and Cutler makes no representation as to the suitability of the Bonds for investment by any investor. MUNICIPAL ADVISOR Ehlers has served as Municipal Advisor to the Village in connection with the issuance of the Bonds. The Municipal Advisor will not participate in the underwriting of the Bonds. The financial information included in this Official Statement has been compiled by the Municipal Advisor. Such information does not purport to be a review, audit or certified forecast of future events and may not conform with accounting principles applicable to compilations of financial information. Ehlers is not a firm of certified public accountants. Ehlers is registered with the Securities and Exchange Commission and the Municipal Securities Rulemaking Board as a Municipal Advisor. 17

22 MUNICIPAL ADVISOR AFFILIATED COMPANIES Bond Trust Services Corporation ( BTSC ) and Ehlers Investment Partners, LLC ( EIP ) are affiliate companies of Ehlers. BTSC is chartered by the State of Minnesota and authorized in Minnesota, Wisconsin and Illinois to transact the business of a limited purpose Trust Company. BTSC provides Paying Agent services to debt issuers. EIP is a Registered Investment Advisor with the Securities and Exchange Commission. EIP assists issuers with the investment of bond proceeds or investing other issuer funds. Issuers, such as this issuer, have or may retain BTSC and/or EIP to provide these services. If hired, BTSC and/or EIP would be retained by the issuer under an agreement separate from Ehlers. UNDERWRITING Pursuant to the terms of a Bond Purchase Agreement (the "Agreement") between the Village and the Underwriter, the Underwriter has agreed to purchase the Bonds at an aggregate purchase price of $4,688, The purchase price will produce an underwriting spread of 0.825% of the initial offering price if all Bonds are sold at the initial offering prices. The Agreement provides that the obligation of the Underwriter is subject to certain conditions precedent and that the Underwriter will be obligated to purchase all of the Bonds if any of the Bonds are purchased. The Bonds may be offered and sold to certain dealers (including dealers depositing such Bonds into investment trusts, accounts or funds) and others at prices lower than the initial public offering price. After the initial public offering, the public offering price of the Bonds may be changed from time to time by the Underwriter. RISK FACTORS The purchase of the Bonds involves certain investment risks. Accordingly, each prospective purchaser of the Bonds should make an independent evaluation of the entirety of the information presented in this Official Statement and its appendices and exhibits in order to make an informed investment decision. Certain of the investment risks are described below. The following statements, however, should not be considered a complete description of all risks to be considered in the decision to purchase the Bonds, nor should the order of the presentation of such risks be construed to reflect the relative importance of the various risks. There can be no assurance that other risk factors are not material or will not become material in the future. FINANCES OF THE STATE OF ILLINOIS Under current law, the State shares a portion of sales tax, income tax and motor fuel tax revenue with municipalities, including the Village. The Village can give no assurance that there will not be a change in applicable law modifying the manner in which such revenues are allocated by the State. In particular, in his February 18, 2015 budget address, Governor Rauner proposed reducing the amount of State income tax revenues shared with municipalities by as much as half. The Village cannot predict whether, or in what form, such proposal or similar legislation may be enacted into law, nor can the Village predict the effect of such change on the Village s finances. LOCAL ECONOMY The financial health of the Village is in part dependent on the strength of the local economy. Many factors affect the local economy, including rates of employment and economic growth and the level of residential and commercial development. It is not possible to predict to what extent any changes in economic conditions, demographic 18

23 characteristics, population or commercial and industrial activity will occur and what impact such changes would have on the finances of the Village. DECLINING EQUALIZED ASSESSED VALUATIONS The amount of property taxes extended for the Village is determined by applying the various operating tax rates and the bond and interest tax rate levied by the Village to the EAV. The Village s EAV could decrease for a number of reasons including, but not limited to, a decline in property values or large taxpayers moving out of the Village. As detailed below, the Village s EAV has declined over the past four years. Declining EAVs and increasing rates (certain of which may reach their rate ceilings) could reduce the amount of taxes the Village is able to receive. FUTURE PENSION PLAN FUNDING REQUIREMENTS The Village participates in the Police Pension Plan and the Firefighters Pension Plan, both as hereinafter defined. Under the Pension Code, the Village is required to contribute to each plan in order to achieve a Funded Ration of 90% by In order to achieve the 90% Funded Ratio for both plans by 2040, it is expected that the annual employer contributions required by the Village will increase over time. Increasing annual required employer contributions for the Village could have a material adverse effect on the finances of the Village. See THE VILLAGE - Employees; Pensions and Unions herein for a more complete discussion. LOSS OR CHANGE OF BOND RATING The Bonds have received a credit rating from S&P. The rating can be changed or withdrawn at any time for reasons both under and outside the Village s control. Any change, withdrawal or combination thereof could adversely affect the ability of investors to sell the Bonds or may affect the price at which they can be sold. SECONDARY MARKET FOR THE BONDS No assurance can be given that a secondary market will develop for the purchase and sale of the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price. The Underwriter is not obligated to engage in secondary market trading or to repurchase any of the Bonds at the request of the owners thereof. Prices of the Bonds as traded in the secondary market are subject to adjustment upward and downward in response to changes in the credit markets and other prevailing circumstances. No guarantee exists as to the future market value of the Bonds. Such market value could be substantially different from the original purchase price. CONTINUING DISCLOSURE A failure by the Village to comply with the Undertaking for continuing disclosure (see CONTINUING DISCLOSURE herein) will not constitute an event of default on the Bonds. Any such failure must be reported in accordance with Rule 15c2-12 (the Rule ) adopted by the Securities and Exchange Commission (the Commission ) under the 19

24 Securities Exchange Act of 1934, as amended (the Exchange Act ), and may adversely affect the transferability and liquidity of the Bonds and their market price. SUITABILITY OF INVESTMENT The interest rate borne by the Bonds is intended to compensate the investor for assuming the risk of investing in the Bonds. Furthermore, the tax-exempt feature of the Bonds is currently more valuable to high tax bracket investors than to investors that are in low tax brackets. As such, the value of the interest compensation to any particular investor will vary with individual tax rates and circumstances. Each prospective investor should carefully examine the Official Statement and its own financial condition to make a judgment as to its ability to bear the economic risk of such an investment, and whether or not the Bonds are an appropriate investment for such investor. FUTURE CHANGES IN LAWS Various state and federal laws, regulations and constitutional provisions apply to the Village and to the Bonds. The Village can give no assurance that there will not be a change in, interpretation of, or addition to such applicable laws, provisions and regulations which would have a material effect, either directly or indirectly, on the Village, or the taxing authority of the Village. For example, many elements of local government finance, including the issuance of debt and the levy of property taxes, are controlled by state government. Future actions of the State, including in particular laws that pre-empt the home rule powers of the Village, may affect the overall financial conditions of the Village, the taxable value of property within the Village, and the ability of the Village to levy property taxes or collect revenues for its ongoing operations. FACTORS RELATING TO TAX EXEMPTION As discussed under TAX EXEMPTION herein, interest on the Bonds could become includible in gross income for purposes of federal income taxation, retroactive to the date the Bonds were issued, as a result of future acts or omissions of the Village in violation of its covenants in the Bond Ordinance. Should such an event of taxability occur, the Bonds are not subject to any special redemption. There are or may be pending in the Congress of the United States legislative proposals relating to the federal tax treatment of interest on the Bonds, including some that carry retroactive effective dates, that, if enacted, could affect the market value of the Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or whether, if enacted, it would apply to Bonds issued prior to enactment. Finally, reduction or elimination of the tax-exempt status of obligations such as the Bonds could have an adverse effect on the Village s ability to access the capital markets to finance future capital or operational needs by reducing market demand for such obligations or materially increasing borrowing costs of the Village. The tax-exempt bond office of the Service is conducting audits of tax-exempt bonds, both compliance checks and full audits, with increasing frequency to determine whether, in the view of the Service, interest on such tax-exempt obligations is includible in the gross income of the owners thereof for Federal income tax purposes. It cannot be 20

25 predicted whether the Service will commence any such audit. If an audit is commenced, under current procedures the Service may treat the Village as a taxpayer and the Bondholders may have no right to participate in such proceeding. The commencement of an audit with respect to any tax-exempt obligations of the Village could adversely affect the market value and liquidity of the Bonds, regardless of the ultimate outcome. BANKRUPTCY The rights and remedies of the Bondholders may be limited by and are subject to the provisions of federal bankruptcy laws, to other laws or equitable principles that may affect the enforcement of creditors rights, to the exercise of judicial discretion in appropriate cases and to limitations on legal remedies against local governments. The various opinions of counsel to be delivered with respect to the Bond will be similarly qualified. ILLINOIS PROPERTY VALUATIONS PROPERTY TAX ASSESSMENT SUMMARY OF PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES A separate tax to pay the principal of and interest on the Bonds will be levied on all taxable real property within the Village. The information under this caption describes the current procedures for real property assessments, tax levies and collections in Kankakee County, Illinois. There can be no assurance that the procedures described herein will not change. TAX LEVY AND COLLECTION PROCEDURES Local Assessment Officers determine the assessed valuation of taxable real property and railroad property not held or used for railroad operations. The Department assesses certain other types of taxable property, including railroad property held or used for railroad operations. Local Assessment Officers valuation determinations are subject to review at the county level and then, in general, to equalization by the Department. Such equalization is achieved by applying to each county s assessments a multiplier determined by the Department. The purpose of equalization is to provide a common basis of assessments among counties by adjusting assessments toward the statutory standard of 33-1/3% of fair cash value. Farmland is assessed according to a statutory formula, which takes into account factors such as productivity and crop mix. Taxes are extended against the assessed values after equalization. Property tax levies of each taxing body are filed in the office of the county clerk of each county in which territory of that taxing body is located. The county clerk computes the rates and amount of taxes applicable to taxable property subject to the tax levies of each taxing body and determines the dollar amount of taxes attributable to each respective parcel of taxable property The county clerk then supplies to the appropriate collecting officials within the county the information needed to bill the taxes attributable to the various parcels therein. After the taxes have been collected, 21

26 the collecting officials distribute to the various taxing bodies their respective shares of the taxes collected. Taxes levied in one calendar year are due and payable in two installments during the next calendar year. Taxes that are not paid when due, or that are not paid by mail and postmarked on or before the due date, are subject to a penalty of 1-1/2% per month until paid. Unpaid property taxes, together with penalties, interest and costs, constitute a lien against the property subject to the tax. EXEMPTIONS An annual General Homestead Exemption provides that the Equalized Assessed Valuation ( EAV ) of certain property owned and used for residential purposes ( Residential Property ) may be reduced by the amount of any increase over the 1977 EAV, up to a maximum reduction of $6,000 for tax year 2012 and thereafter. The Homestead Improvement Exemption applies to Residential Properties that have been improved or rebuilt in the 2 years following a catastrophic event. The exemption is limited to $45,000 through December 31, 2003, and $75,000 per year beginning January 1, 2004, and thereafter, to the extent the assessed value is attributable solely to such improvements or rebuilding. The Senior Citizens Homestead Exemption annually reduces the EAV on residences owned and occupied by senior citizens. Beginning with tax year 2013, the maximum exemption is $5,000. A Senior Citizens Assessment Freeze Homestead Exemption ( Senior Citizens Assessment Freeze Homestead Exemption ) freezes property tax assessments for homeowners, who are 65 and older and receive a household income not in excess of the maximum income limitation. The maximum income limitation is $55,000 for assessment year 2008 and thereafter. In general, the Exemption limits the annual real property tax bill of such property by granting to qualifying senior citizens an exemption as to a portion of the valuation of their property. For those counties with less than 3,000,000 in population, the exempt amount is the difference between (a) the current EAV of the residence and (b) the base amount, which is the EAV of a senior citizen s residence for the year prior to the year in which he or she first qualifies and applies for the Exemption (plus the EAV of improvements since such year). The Natural Disaster Homestead Exemption (the Natural Disaster Exemption ) applies to homestead properties containing a residential structure that has been rebuilt following a natural disaster occurring in taxable year 2012 or any taxable year thereafter. A natural disaster is an occurrence of widespread or severe damage or loss of property resulting from any catastrophic cause including but not limited to fire, flood, earthquake, wind, or storm. The Natural Disaster Exemption is equal to the equalized assessed value of the residence in the first taxable year for which the taxpayer applies for the exemption minus the base amount. To be eligible for the Natural Disaster Exemption, the residential structure must be rebuilt within two years after the date of the natural disaster, and the square footage of the rebuilt residential structure may not be more than 110% of the square footage of the original residential structure as it existed immediately prior to the natural disaster. The Natural Disaster Exemption remains at a constant amount until the taxable year in which the property is sold or transferred. Another exemption available to disabled veterans operates annually to exempt up to $70,000 of the EAV of property owned and used exclusively by such veterans or their spouses for residential purposes. However, individuals claiming 22

27 exemption under the Disabled Persons Homestead Exemption ( Disabled Persons Homestead Exemption ) or the Disabled Veterans Standard Homestead Exemption ( Disabled Veterans Standard Homestead Exemption ) cannot claim the aforementioned exemption. Also, certain property is exempt from taxation on the basis of ownership and/or use, such as public parks, not-for-profit schools and public schools, churches, and not-for-profit hospitals and public hospitals. Furthermore, the Disabled Persons Homestead Exemption provides an annual homestead exemption in the amount of $2,000 for property that is owned and occupied by certain persons with a disability. However, individuals claiming exemption as a disabled veteran or claiming exemption under the Disabled Veterans Standard Homestead Exemption cannot claim the aforementioned exemption. In addition, the Disabled Veterans Standard Homestead Exemption provides disabled veterans an annual homestead exemption starting with assessment year 2007 and thereafter. Specifically, (a) those veterans with a service-connected disability of 70% are granted an exemption of $5,000 and (b) those veterans with a service-connected disability of less than 70%, but at least 50% are granted an exemption of $2,500. Furthermore, the veteran s surviving spouse is entitled to the benefit of the exemption, provided that the spouse has legal or beneficial title of the homestead, resides permanently on the homestead and does not remarry. However, individuals claiming exemption as a disabled veteran or claiming exemption under the Disabled Persons Homestead Exemption cannot claim the aforementioned exemption. Beginning with assessment year 2007, the Returning Veterans Homestead Exemption ( Returning Veterans Homestead Exemption ) is available for property owned and occupied as the principal residence of a veteran in the assessment year the veteran returns from an armed conflict while on active duty in the United States armed forces. This provision grants a homestead exemption of $5,000, which is applicable in all counties. In order to apply for this exemption, the individual must pay real estate taxes on the property, own the property or have either a legal or an equitable interest in the property, subject to some limitations. Those individuals eligible for this exemption may claim the exemption in addition to other homestead exemptions, unless otherwise noted. PROPERTY TAX EXTENSION LIMITATION LAW The Property Tax Extension Limitation Law, as amended (the Limitation Law ), limits the annual growth in the amount of property taxes to be extended for certain Illinois non-home-rule units, including the Village. In general, the annual growth permitted under the Limitation Law is the lesser of 5% or the percentage increase in the Consumer Price Index during the calendar year preceding the levy year. Taxes can also be increased due to new construction, referendum approval of tax rate increases, mergers and consolidations. The effect of the Limitation Law is to limit the amount of property taxes that can be extended for a taxing body. In addition, general obligation bonds, notes and installment contracts payable from ad valorem taxes unlimited as to rate and amount cannot be issued by the affected taxing bodies unless they are approved by referendum, are alternate bonds (such as the Bonds) or are for certain refunding purposes. The Village has the authority to levy taxes for many different purposes. See TAX LEVIES, COLLECTIONS, AND TAX RATES - Tax Rates by Purpose herein. The ceiling at any particular time on the rate at which these taxes may 23

28 be extended for the Village is either (a) unlimited (as provided by statute), (b) initially set by statute but permitted to be increased by referendum, capped by statute, or (d) limited to the rate approved by referendum. The only ceiling on a particular tax rate is the ceiling set by statute, at which the rate is not permitted to be further increased by referendum or otherwise. Therefore, taxing districts (such as the Village) have flexibility to levy taxes for the purposes for which they most need the money. The total aggregate tax rate for the various purposes subject to the Limitation Law, however, will not be allowed to exceed the Village s limiting rate computed in accordance with the provisions of the Limitation Law. Local governments, including the Village, can issue limited bonds in lieu of general obligation bonds that have otherwise been authorized by applicable law. Illinois legislators have introduced proposals to modify the Limitation Law, including freezing property taxes and extending tax caps to all taxing bodies in the State (the Property Tax Freeze Proposal ). If the Property Tax Freeze Proposal or similar legislation were to become law, such reform may have a material impact on the finances of the Village and the ability of the Village to issue limited tax bonds. The Village cannot predict whether, or in what form, any change to the Limitation Law, including the Property Tax Freeze Proposal, may be enacted into law, nor can the Village predict the effect of any such change on the Village s finances. CURRENT PROPERTY VALUATIONS Net Valuation Valuation including TIF Increment 2014 Estimated Market Value $764,783,712 $802,150, Equalized Assessed Value $254,927,904 $267,383,447 Source: Kankakee County Clerk 24

29 2014 EQUALIZED ASSESSED VALUE BY CLASSIFICATION Equalized Assessed Value Percent of Total Value Residential $ 172,569, % Commercial 78,906, % Industrial 2,851, % Agricultural 223, % Railroad 377, % Total $ 254,927, % Source: Kankakee County Clerk TREND OF VALUATIONS Year Estimated Market Value Equalized Assessed Value Percent Increase/Decrease In Equalize Assessed Value 2010 $888,065,340 $296,021, % ,355, ,785, % ,494, ,498, % ,524, ,174, % ,783, ,927, % Source: Kankakee County Clerk 1 Local assessors set the fair market value for all real property and railroad property not used for transportation purposes. Railroad property used for transportation purposes is assessed by the Illinois Department of Revenue. 25

30 LARGER TAXPAYERS 2 Taxpayer Type of Property 2014 Equalized Assessed Value Percent of Village* Route 50 Holdings LLC Commercial $ 5,888, % Walmart Department store 4,963, % Inland Bradley Commons LLC Commercial 4,093, % Ravenswood Industrial Building LLC Commercial 3,026, % Kmart Corporation Department store 2,288, % Menard Inc. Home center store 2,237, % Kohls Illinois Inc. Department store 1,934, % Dayton Hudson Corp #895 Department store 1,857, % Lowe s Companies of 118 Home center store 1,600, % JC Penney Co #23929 Department store 1,586, % Total $29,477, % Village's Total 2014 EAV $267,383,447 * Total Equalized Assessed Value of $267,383,447 includes incremental valuation of the Village of Bradley s tax increment financing districts Source: Property Valuations and Larger Taxpaying Parcels provided by the Kankakee County Clerk. 2 Some of the taxpayers listed above may own multiple parcels. The valuations stated above for some of the taxpayers may not include all parcels or all classifications of property. 26

31 DEBT DIRECT GENERAL OBLIGATION DEBT (see schedules following) (excludes Refunded Bonds, and includes the Bonds 3 ) The 2006 Bonds 1 $ 220,000 The Bonds 4,475,000 Total General Obligation Bonded Debt $ 4,695,000 OTHER OBLIGATIONS Issue Issue Date Final Maturity Amount Outstanding $8,000,000 Tax Increment Revenue Bonds, Series /3/07 1/1/27 $ 6,550,000 (the 2007 Bonds ) Miscellaneous Capital Leases 251,940 Total Other Obligations $6,801,940 GENERAL OBLIGATION DEBT LIMIT 2014 Equalized Assessed Value $267,383,447 Multiply by 8.625% Current Statutory General Obligation Debt Limit $23,061,822 Less: Direct General Obligation Debt Applied to Debt Limit 4 (471,940) Unused General Obligation Debt Limit $22,589, The December 1, 2015 maturity of the 2006 Bonds will be paid by the Village on December 1, Does not include the 2007 Bonds, which are payable solely from incremental property taxes derived from the State Route 50 Redevelopment Project Area of the Village, or alternate revenue bonds (such as the Bonds), which do no constitute debt of the Village unless the supporting property tax levy is extended for payment of such alternate bonds. Because the supporting property tax levy was extended for payment of the 2006 Bonds, the 2006 Bonds not being refunded by the Bonds are not excluded. 27

32 VILLAGE OF BRADLEY SCHEDULE OF GENERAL OBLIGATION BONDED INDEBTEDNESS (As of September 23, 2015) Series 2006 Series 2015A 1) Dated 3/15/2006 9/23/2015 Amount $6,300,000 $4,475,000 Maturity 12/1 12/1 Fiscal Year Total Total Total Principal Ending Principal Interest Principal Interest Principal Interest P & I Outstanding % Paid ,000 9, ,000 9, ,900 4,475, % , , , , ,099 4,260, % , , , , ,550 4,010, % , , , , ,550 3,755, % , , , , ,900 3,495, % , , , , ,100 3,225, % , , , , ,000 2,950, % , , , , ,750 2,670, % , , , , ,350 2,380, % ,000 95, ,000 95, ,200 2,080, % ,000 83, ,000 83, ,200 1,765, % ,000 70, ,000 70, ,600 1,440, % ,000 57, ,000 57, ,600 1,100, % ,000 44, ,000 44, , , % ,000 30, ,000 30, , , % ,000 15, ,000 15, , % 220,000 9,900 4,475,000 1,485,099 4,695,000 1,494,999 6,189,999 1) current refunds maturities of the 2006 Bonds Prepared by Ehlers Associates, Inc. 28

33 OVERLAPPING DEBT 5 Taxing Body % in Village Total G.O. Debt Village's Proportionate Share School District % $ 3,031,152 $94,875 School District % 2,930,000 2,640,516 School District % 3,386,000 2,869,296 High School District % 4,935,000 1,850,625 Community College % 11,950,000 1,406,515 Bourbonnais Township Park 37.38% 2,440, ,072 Village s Share of Total Overlapping Debt $9,773,899 Source: Kankakee County Clerk DEBT RATIOS G.O. Debt Debt/Estimated Market Value* $802,150,340 Debt/ Per Capita Pop. 15,793 Total General Obligation Bonded Debt $4,695, % $297 Village's Share of Total Overlapping Debt $9,773, % $619 Total $14,468, % $916 * includes TIF increment value DEBT PAYMENT HISTORY The Village has never defaulted in the payment of principal and interest on its debt. FUTURE FINANCING The Village reports no plans for additional financing in the next six months. SHORT TERM BORROWING The Village has not issued tax anticipation warrants or revenue anticipation notes during the last five years to meet its short-term current year cash flow requirements 5 Only those taxing jurisdictions with outstanding general obligation bonded debt are included in this chart. 29

34 TAX LEVIES, COLLECTIONS, AND TAX RATES TAX LEVIES AND COLLECTIONS Percent of Current Collections to Date and Back Taxes Tax Year Tax Extension and Back Taxes Collected to Date 2010/11 $1,859,017 $1,855, % 2011/12 1,972,496 1,964, % 2012/13 2,152,065 2,171, % 2013/14 2,327,263 2,353, % 2014/15 2,364,711 In Process In Process Source: Kankakee County Clerk VILLAGE TAX RATES Property tax rates are expressed in dollars per $100 of Equalized Assessed Value. Fund Rate (1) Corporate $ $ $ $ $ $ Garbage Disposal IMRF/FICA Civil Defense Public Benefit Parks Police Protection Police Pension None Audit None Liability Insurance None Social Security None Bond None Total $ $ $ $ $ Source: Kankakee County Clerk Max (1) See ILLINOIS PROPERTY VALUATIONS PROPERTY TAX ASSESSMENT Property Tax Extension Limitation Law herein for information on the operation of such maximum rates under the Limitation Law. 30

35 TYPICAL TAX BILL Property tax rates are expressed in dollars per $100 of Equalized Assessed Value. Taxing Authority The Village $ $ $ $ $ Bourbonnais Township Bradley Village Fire Bourbonnais Township Road Bourbonnais Township Park Bradley Library School District # Bradley-Bourbonnais HSD # Kankakee CCD # Kankakee County Kankakee Airport Total $ $ $ $ $ Source: Kankakee County Clerk THE VILLAGE VILLAGE INFORMATION The Village is located along Interstate 57, with Interstates 55 and 65 within a one-hour drive. Commuter rail service to Chicago is available in nearby communities and the Village is within one and a half hours of Chicago s Midway Airport. The Village s area is 6.93 square miles. The Village is bordered by the City of Kankakee to the south and the Village of Bourbonnais to the north and east. The Village was incorporated in Its population was estimated to be 15,895 at the 2010 U.S. Census, an increase from 12,784 at the 2000 Census. The Village is governed by a President and Board of Trustees. Elected officials include the Village President, Village Clerk and six Trustees who are elected to staggered four-year terms. The Board appoints a Village Administrator; this position is currently vacant. The Village is actively recruiting for this position. Utilities servicing the Village include NICOR (gas), Commonwealth Edison (electricity) and Aqua Illinois (water). The Village Utilities Department is responsible for both storm and sanitary sewers. Sewage is collected through Village mains and passed along to the Kankakee River Metropolitan Agency (KRMA). Storm sewer runoff is managed through a Village system and routed to the nearby Kankakee River. Fire protection service for the Village is provided by the Bradley Fire Department, with 6 full-time EMT s, 30 paid-on-call firefighters and a full-time Chief. The Village has its own full-time Police Department staffed by 34 sworn officers. Recreational opportunities are provided by the Bourbonnais Township Park District and the Kankakee River Valley Forest Preserve District. Library services are provided by the Bradley Public Library District. Residents of the Village are served by Kankakee School District #111, Bourbonnais School District #53, Bradley School District #61, St. George Community Consolidated School District #258, Bradley Bourbonnais Community High School #307 and Kankakee Community College #520. For additional information regarding the Village, please visit their website at 31

36 EMPLOYEES; PENSIONS AND UNIONS The Village employs a staff of 85. Recognized and certified bargaining units include: Bargaining Unit Current Contract Expires Fraternal Order of Police Lodge 196 April 30, 2016 Fire Local 4288 April 30, 2016 Operating Engineers Local 399 April 30, 2016 Laborer s Local Code Enforcement April 30, 2016 Laborer s Local Clerical April 30, 2016 Employee-Union relations are considered to be healthy. The Village contributes to four defined benefit pension plans: (I) the Illinois Municipal Retirement Fund ( IMRF ), (ii) the Sheriff s Law Enforcement Personnel Fund ( SLEP ), (iii) the Police Pension Plan, and (iv) the Firefighters Pension Plan. The benefits, benefit levels, employee contributions and employer contributions to these plans are governed by the Illinois Pension Code and can only be amended by the Illinois General Assembly. IMRF AND SLEP PLANS The Village participates in two defined benefit pension plans: the Illinois Municipal Retirement Fund (the IMRF Plan ) and the Sheriff s Law Enforcement Personnel Fund (the SLEP Plan and, together with the IMRF Plan, the IMRF Administered Plans ), which are administered by the Illinois Municipal Retirement Fund ( IMRF ). The IMRF Administered Pension Plans are agent multiple-employer public employee retirement systems, which means that the IMRF Administered Pension Plans are an aggregation of single-employer plans with pooled administrative and investment functions. Separate accounts are maintained for each employer such that the contributions of an employer (such as the Village) provide benefits only for the employees of that employer. A separate periodic contribution rate is determined for each employer based on the benefit formula applicable to that employer and the individual plan s proportionate share of the pooled assets. The Illinois Pension Code, as amended (the Pension Code ) governs the benefit levels, employee contributions and employer contributions of the IMRF Administered Pension Plans. The Pension Code may only be amended by the Illinois General Assembly. Both employers and employees contribute to the IMRF Administered Pension Plans. At present, IMRF Plan members contribute 4.50% of their salary to the IMRF Plan and SLEP Plan members contribute 7.50% of their salary to the SLEP Plan, as established by statute. Employers are required to make all additional contributions necessary to fund the benefits provided to employees by the IMRF Administered Pension Plans. The annual rate at which an employer must contribute to the IMRF for a pension plan, such as the IMRF Administered Pension Plans is established by the IMRF Board of Trustees (the IMRF Board ). The Village s contribution rate for calendar year 2014 for the IMRF Plan was 11.82% of covered payroll, and the Village s contribution rate for calendar year 2014 for the SLEP Plan was 13.75% of covered payroll. The IMRF issues a publicly available financial report that includes financial statements and required supplementary information which may be viewed at the IMRF s website. Actuarial Assumptions The IMRF Board makes contribution decisions on the basis of an actuarial valuation performed by the IMRF s actuary (the Actuary ). In the actuarial valuation, the Actuary employs certain actuarial methods and assumptions regarding future activity in specific risk areas, including investment return, payroll growth and retiree longevity, to make determinations regarding the future liability of the IMRF Administered Pension Plans to pay benefits and, as a result, to determine the amount that must be contributed in the current year to provide for payment of those benefits in the future. The assumptions and the methods used by the IMRF comply with the requirements of the Governmental Accounting Standards Board. The IMRF Board adopts its assumptions after considering the advice of the Actuary. At present, the Actuary uses the following assumptions, among others, in generating the actuarial valuation for the IMRF Administered Pension 32

37 Plans: (a) 7.50% investment rate of return (net of administrative expenses), (b) projected salary increases of 4.00% per year, attributable to inflation, (c) additional projected salary increases ranging from 0.4% to 10% per year depending on age and service, attributable to seniority/merit, and (d) post-retirement benefit increases of 3% annually. Actuarial assumptions that vary widely from pension plan experience may have the effect of causing over or under contributions by participating employers to their respective IMRF Administered Pension Plan accounts. To ensure accurate actuarial assumptions, the Actuary conducts an experience study, which is a comparison of the actual experience of the IMRF to the assumptions previously used by the Actuary, every three years and makes recommendations to the IMRF Board with respect to necessary changes to such assumptions. See Note 11 to the Audit, as hereinafter defined, for additional information on the IMRF Administered Pension Plans actuarial methods and assumptions. Funded Status As of December 31, 2014, the most recent actuarial valuation date, the Village s IMRF Plan had a funded ratio ( Funded Ratio ) of 70.70% on an actuarial basis, taking into account the Asset Smoothing Method, as described in the footnote to the table below, which corresponds to an unfunded actuarial accrued liability ( UAAL ) of $1,768,761. On a market value basis, the IMRF Plan s Funded Ratio was 87.96%, which corresponds to an UAAL of $727,036. As of December 31, 2014, the most recent actuarial valuation date, the Village s SLEP Plan had a Funded Ratio of 0.00% on an actuarial basis, taking into account the Asset Smoothing Method, as described in the footnote to the table below, which corresponds to an UAAL of (35,191. On a market value basis, the SLEP Plan s Funded Ratio was 0.00%, which corresponds to an UAAL of ($66,664). The Funded Ratios described herein with respect to the IMRF Administered Pension Plans represent the percentage of the Actuarial Accrued Liability ( AAL ) funded with respect to active and inactive members only. The Village has funded 100% of the AAL with respect to its retirees. The Funded Ratio and UAAL for the Village s IMRF Administered Pension Plans as of December 31, 2012, through December 31, 2014, were as follows: 33

38 THE IMRF PLAN THE SLEP PLAN ACTUARIAL VALUE (1) MARKET VALUE ACTUARIAL VALUE (1) MARKET VALUE CALENDAR YEAR FUNDED RATIO UAAL FUNDED RATIO UAAL FUNDED RATIO UAAL FUNDED RATIO UAAL % $1,768, % $727, % ($35,191) 0.00% ($66,664) % 1,249, % 207, % (30,789) 0.00% (63,621) % 1,428, % 1,238, % (10,240) 0.00% (10,448) Source: IMRF s GASB 50 Disclosures. (1) The Funded Ratio and UAAL for the Village s IMRF Administered Pension Plans are computed using the actuarial value of assets calculated pursuant to the asset smoothing method (the Asset Smoothing Method ). The Asset Smoothing Method lessens the immediate impact of market fluctuations on the actuarial value of assets, the UAAL and the Funded Ratio that may otherwise occur as a result of market volatility. However, asset smoothing delays recognition of gains and losses, thereby providing an actuarial value of assets that does not reflect the true value of pension plan assets at the time of measurement. As a result, presenting the actuarial value of assets as determined under the Asset Smoothing Method might provide a more or less favorable presentation of the current financial position of a pension plan than would a method that recognizes investment gains and losses annually. 34

39 The Village contributed all of its annual pension cost ( APC ), as determined by the IMRF Board, to the IMRF Administered Pension Plans in calendar years 2012 through The Village anticipates that it will continue to make full contributions to its IMRF Administered Pension Plans, which includes an amortization of the UAAL, in the coming years. The Village s contributions to its IMRF Administered Pension Plans for calendar years 2012 through 2014 were as follows: CALENDAR YEAR THE IMRF PLAN THE SLEP PLAN APC PERCENTAGE CONTRIBUTED APC PERCENTAGE CONTRIBUTED 2014 $310, % $0 100% , % 7, % , % % Source: IMRF s GASB 50 disclosures. Please see Note 11 to the Audit, and the related required supplementary information disclosures, for a description of the IMRF, the IMRF Administered Pension Plans, the Village s funding policy, the funded status and funding progress of the IMRF Administered Pension Plans, and information on the assumptions and methods used by the Actuary. POLICE PENSION PLAN The Village provides pension benefits to its sworn police personnel through a single-employer, defined benefit pension plan (the Police Pension Plan ). The defined benefit levels and the employee and employer contribution levels are governed by the Pension Code and may only be amended by the General Assembly. The Police Pension Plan s Funded Ratio as of April 30, 2014, was 62.45% on an actuarial basis, which corresponds to a UAAL of $6,950,057. The Funded Ratio and UAAL for the Police Pension Plan as of April 30, 2012, through April 30, 2014, are as follows: ACTUARIAL VALUATION DATE (APRIL 30) POLICE PENSION PLAN (1) FUNDED RATIO UAAL % $6,950, % 6,771, % 5,954,791 Source: The audited financial statements of the Village for fiscal years ending April 30, 2012 April 30, (1) The Funded Ratio and UAAL are computed using the actuarial value of assets calculated pursuant to the market method. 35

40 The Village s contributions to the Police Pension Plan for fiscal years 2012 through 2014 were as follows: FISCAL YEAR (ENDING APRIL 30) APC PERCENTAGE CONTRIBUTED 2014 $777, % , % , % Source: The audited financial statements of the Village for fiscal years ending April 30, 2012-April 30, Please see Note 11 to the Audit, and the related required supplementary information disclosures, for a description of the Police Pension Plan, the Village s funding policy, the funded status and funding progress of the Police Pension Plan, and information on the assumptions and methods used by the actuary. FIREFIGHTERS PENSION PLAN The Village provides pension benefits to its sworn fire personnel through a single-employer, defined benefit pension plan (the Firefighters Pension Plan ). The defined benefit levels and the employee and employer contribution levels are governed by the Pension Code and may only be amended by the General Assembly. The Firefighters Pension Plan s Funded Ratio as of April 30, 2014, was 52.5% on an actuarial basis, which corresponds to a UAAL of $470,604. The Funded Ratio and UAAL for the Firefighters Pension Plan as of April 30, 2012, through April 30, 2014, are as follows: ACTUARIAL VALUATION DATE (APRIL 30) FIREFIGHTERS PENSION PLAN (1) FUNDED RATIO UAAL % $470, % 455, % 354,477 Source: The audited financial statements of the Village for fiscal years ending April 30, 2012 April 30, (1) The Funded Ratio and UAAL are computed using the actuarial value of assets calculated pursuant to the market method. The Village s contributions to the Firefighters Pension Plan for fiscal years 2012 through 2014 were as follows: FISCAL YEAR (ENDING APRIL 30) APC PERCENTAGE CONTRIBUTED 2014 $77, % , % , % Source: The audited financial statements of the Village for fiscal years ending April 30, 2012-April 30,

41 Please see Note 11 to the Audit, and the related required supplementary information disclosures, for a description of the Firefighters Pension Plan, the Village s funding policy, the funded status and funding progress of the Firefighters Pension Plan, and information on the assumptions and methods used by the actuary. VILLAGE CONTRIBUTIONS TO POLICE AND FIREFIGHTERS PENSION PLANS The Pension Code requires the Village to contribute to the Police Pension Plan and the Firefighters Pension Plan annually the amount necessary to achieve a Funded Ratio of 90% in each plan by Such contributions are determined pursuant to an actuarial valuation employing the Projected Unit Credit Method (the PUC Method ) as the actuarial cost method. Such contributions include, in addition to the portion of the actuarial present value of pension plan benefits allocated to such contribution year, an amortization of the Police Pension Plan s and the Firefighters Pension Plan s UAAL, which were $6,950,057 and $470,604 respectively as of April 30, However, the Village s contributions to its Police Pension Plan and Firefighters Pension Plan are currently determined pursuant to an actuarial valuation using the Entry Age Normal cost funding method (the EAN Method ). The amount of the Village s contributions into its Police Pension Plan and Firefighters Pension Plan will vary depending on whether the PUC Method or EAN Method is used in the actuarial valuation. The PUC Method allocates the present value of future benefits based on the service credits of each member of the pension funds. In contrast, under the EAN Method, the normal cost rate for each member is developed as the level percent of payroll that, if applied to the member s pay each year and contributed over the member s expected career, would fully fund the member s present value of future benefits. The EAN Method is designed to produce a normal cost that is stable in amounts that increase at the same rate as the employer s payroll, whereas the PUC Method results in a normal cost that tends to increase at a greater rate than the employer s payroll. Considered independently of other factors, use of the EAN Method results in higher contribution rates associated with the earlier years of employment for active employees, when compared to the PUC Method. This allows a pension fund to accumulate greater investment returns throughout the careers of such employees and results in lower aggregate employer contributions in the long-term. In contrast, use of the PUC Method tends to result in lower contribution rates in the earlier years of employment for active employees and, therefore, a slower accumulation of assets and rising, rather than level, contribution rates when compared to the EAN Method. Such differences between the PUC Method and the EAN Method result from the fact that the PUC Method allocates a higher portion of retirement costs closer to retirement, while the EAN Method spreads those costs evenly as a percentage of pay over the member s period of employment. Therefore, the annual employer contributions required of the Village may increase over time as the amortization period to 2040 reduces, however such increases under the EAN Method will likely be less than the increases the Village would incur under the PUC Method. In addition, any future increases in the UAAL such as those caused, for example, by investment returns lower than projected, will also, when considered independently, cause increases in the Village s annual contribution to such pension funds. P.A allows the State Comptroller to divert State grant money intended for the Village to either the Police Pension Plan and Firefighters Pension Plan to satisfy contribution shortfalls by the Village (the Recapture Provision ). If the Village fails to contribute to the Police Pension Plan and Firefighters Pension Plan as required by the Pension Code, the Village will be subject to a reallocation of grants of State funds to the Village if (I) the Village fails to make the required payment for 90 days past the due date, (ii) the subject retirement fund gives notice of the failure to the Village, and (iii) such retirement fund certifies to the State Comptroller that such payment has not been made. Upon the occurrence of these events, the State Comptroller will withhold grants of State funds from the Village in an amount not in excess of the delinquent payment amount in the following proportions: (I) in fiscal year 2016, one-third of the Village s State grant money, (ii) in fiscal year 2017, two-thirds of the Village s State grant money, and (iii) in fiscal year 2018 and in each fiscal year thereafter, 100% of the Village s State grant money. Should the Recapture Provision in P.A be invoked as a result of the Village s failure to contribute all or a portion of its required contribution, a reduction in State grant money may have an adverse impact on the Village s finances. 37

42 LIABILITIES FOR OTHER POST EMPLOYMENT BENEFITS The Village provides postemployment health care benefits ( OPEB ) for retired employees through a singleemployer defined benefit plan. The Village provides post-employment health care benefits to its retirees as well as those employees separated from service from the Village but are not yet retired provided that either group has given at least 20 years of service. As of April 30, 2013, membership consisted of 24 retirees and beneficiaries currently receiving benefits, 39 active employees who are considered vested and 0 active employees who are considered nonvested. The Village is not required to and currently does not advance fund the cost of benefits that will become due and payable in the future. As a result the funded ratio for the OPEB plan as of April 30, 2013 was 0.0% with an UAAL of $9,084,263. LITIGATION There is no litigation threatened or pending questioning the organization or boundaries of the Village or the right of any of its officers to their respective offices or in any manner questioning their rights and power to execute and deliver the Bonds or otherwise questioning the validity of the Bonds. The Village s Attorney reports that any litigation and claims currently pending against the Village are being handled by the Village s insurance carrier or outside counsel and will not affect the issuance of the Bonds. 38

43 SUMMARY GENERAL FUND INFORMATION Following are summaries of revenues and expenditures for the Village's General Fund for the past five fiscal years. These summaries are not purported to be the complete audited financial statements of the Village. The audits have been prepared in accordance with the modified accrual basis of accounting in conformance with generally accepted accounting principles. Copies of the complete statements are available upon request. See Appendix A for the Village's audited financial statements, including the Notes, for fiscal year FISCAL YEAR ENDING APRIL 30 GENERAL FUND Revenues Property Taxes $1,900,344 $1,872,066 $1,914,674 $1,947,855 $2,017,954 State Shared Taxes 6,928,721 7,243,967 7,642,484 8,219,299 8,117,380 Licenses and Permits 156, , , , ,518 Intergovernmental 41, , , , ,937 Charges for Services 962,456 1,050, , , ,457 Fines and Forfeitures 388, , , , ,754 Investment Income 132,116 74,409 57,870 23,913 42,375 Miscellaneous 247, , , , ,242 Total Revenues $10,758,167 $11,870,441 $11,518,566 $11,717,060 $12,159,617 Expenditures General Government $4,493,697 $4,934,869 $4,709,353 $3,145,297 $3,197,300 Public Safety 4,631,691 4,194,526 4,732,702 5,876,379 6,650,650 Public Works 1,297,012 1,308,498 1,379,345 1,617,512 1,917,053 Public Property , ,582 Employee Benefits ,387 27,047 Community Development Building Standards 157, , , , ,926 Total Expenditures $10,579,994 $10,602,792 $11,116,485 $11,260,312 $12,557,558 Excess revenues over (under) expenditures $178,173 $1,267,649 $402,081 $456,748 $(397,941) Other Financing Sources (Uses) Proceeds from Capital Assets Sale 0 Proceeds from Capital Lease ,690 10, ,860 Operating transfers in (out) (173,000) (170,656) (786,874) (350,000) (214,885) Total Other financing sources (uses) $(173,000) $(170,656) $(786,874) $(199,310) $(44,915) Excess of Revenues and Other Financing Sources over (Under) Expenditures and Other Uses $5,173 $1,096,993 $(384,793) $257,438 $(442,856) General Fund Balance May 1 8,698,957 8,704,130 9,801,123 9,416,330 10,186,837* General Fund Balance April 30 $8,704,130 $9,801,123 $9,416,330 $9,673,768 $9,743,981 *as Restated Source: Audited Financial Statements of the Village. 39

44 SUMMARY OF SEWER FUND INFORMATION Following are summaries of receipts and disbursements combined for the Village's Sewer Fund for the past three fiscal years. These summaries do not purport to be the complete financial statements of the Village. The Village uses the cash basis of accounting in separately balanced fund groups. Copies of the complete statements are available upon request. See Appendix A for the Village's audited financial statements, including the Notes for fiscal year FISCAL YEAR ENDING APRIL 30 SEWER FUND Revenues User Charges $1,601,275 $ 1,690,502 $ 1,867,598 Total Revenues $ 1,601,275 $ 1,690,502 $ 1,867,598 Expenditures Salaries and Wages $ 292,146 $ 323,890 $ 246,397 Employee Benefits 130, , ,715 Professional Fees 111,307 74,341 60,330 Materials, Repairs and Maintenance 64, ,183 48,615 Utilities 15,377 13,669 12,516 Depreciation 361, , ,512 Sewer Fees 990, , ,182 Other Operating Expenses 61,204 73,886 70,928 Total Expenditures $ 2,026,848 $ 2,145,687 $ 1,835,195 Excess revenues over (under) expenditures $ (425,573) $ (455,185) $ 32,403 Nonoperating Revenues (Expenses): Interest and Investment Income 2,578 3, Tap-On Fees 25,862 70,400 70,900 Interest Expense (232,950) (225,632) (222,093) Property Taxes 0 143, ,744 State Grants Lien Shut-off Fee ,805 1, Other Income ,431 Total Nonoperating Revenues (204,510) 142, ,458 Net Loss before Transfers (630,083) (312,899) 203,861 Other Financing Sources (Uses) Transfers in - General Fund 568, ,000 0 Total Other financing sources (uses) $ 568,000 $ 200,000 $ 0 Change in Net Assets $ (62,083) $ (112,899) $ 203,861 Sewer Fund Balance May 1 2,029,497 1,967,414 1,854,515 Sewer Fund Balance April 30 $ 1,967,414 $ 1,854,515 $ 2,058,376 Source: Audited Financial Statements of the Village. 40

45 FISCAL YEAR UPDATE In the fiscal year ended April 30, 2015, the Village reduced the General Fund balance by $2 million due to a planned drawdown. The Village transferred $2 million from the General Fund to a new OPEB retirement fund to reduce the Village s OPEB obligation. In fiscal year 2015 the Village initiated a rate study for the Sewer Fund that is expected to be considered by the Village Board by the end of calendar year The rate study is being undertaken to help the Village achieve its objective of strengthening the financial operations in the Sewer Fund so that it can meet all its obligations going forward. In fiscal year 2016, the Village expects the General Fund to realize a surplus of approximately $100,000. The Sewer Fund operations are expected to be balanced on a cash basis. FUNDS ON HAND (As of July 30, 2015) Source: The Village Fund Amount General $4,406,741 Capital Projects 183,723 Agency 26,990 Scrap Recycling 18,449 Cell Tower Rent 7,988 Retirement Separation 306,552 Retirement Insurance 1,983,281 Economic Loan 1,926,989 Rt. 50 TIF Fund 2,104,771 TIF 20 Fund 13,588 Motor Fuel Tax 581,471 Police Pension 14,979,715 Fire Pension 690,395 Sewer 657,804 Debt Service 2,730 Total Cash and Investments $27,891,187 41

46 GENERAL INFORMATION LARGER EMPLOYERS Larger employers in the area include the following:* Firm Type of Business/Product Estimated No. of Employees CSL Behring, LLC Plasma derivatives 700 Bradley-Bourbonnais High School High School 250 Bunge Oils, Inc. Edible oils 240 Peddinghaus Corp. Corporate HQ, Hydraulic systems 200 Crown Cork & Seal Co., Inc. Beverage cans 147 Bradley School District No. 61 Elementary school district 108 Kindred Healthcare Health Services 107 Bradley Royale Health Care Center Nursing & Convalescent Homes 96 The Village Municipality 85 Oak Orthopedics Physicans & Surgeons 80 Source: 2015 Illinois Manufacturers Directory, 2015 Illinois Services Directory, telephone canvas. * This table excludes the following large retailers with stores in the Village: Walmart, Kohl s, Target, Dick s Sporting Goods, JC Penney, Carson Pirie Scott, Menards, Lowe s and KMart. 42

47 U.S. CENSUS DATA Estimated Population Trend The Village Kankakee State of Illinois County 2000 Estimated Population 12, ,833 12,419, Estimated Population 15, ,449 12,830, Estimated Population 15, ,193 12,890,552 Percent of Change % 9.26% 3.31% Housing Statistics Village of Bradley Percent of Change All Housing Units 5,272 6, % Source: 2000 and 2013 Census of Population and Housing. Income and Age Statistics Village of Bradley Kankakee County State of Illinois United States 2013 per capita income $26,900 $23,779 $29,666 $28, median household income $53,595 $50,102 $56,797 $53, median family income $61,319 $61,559 $70,344 $64, median gross rent $910 $795 $890 $ median value owner occupied units $134,300 $145,900 $182,300 $181, median age (in years) State of Illinois United States Village % of 2013 per capita income 90.68% 95.90% Village % of 2013 median family income 87.17% 94.94% Source: 2013 American Community Survey (Based on a five-year estimate) 43

48 EMPLOYMENT/UNEMPLOYMENT DATA Rates are not compiled for smaller communities in Illinois, including the Village. Average Employment Average Unemployment Year Kankakee County Kankakee County State of Illinois , % 9.7% , % 9.0% , % 9.1% , % 7.1% 2015, (June) 51, % 5.9% Source: Employment/Unemployment data was furnished by the Illinois Department of Labor. AUTHORIZATION This Official Statement has been approved by the Village for distribution to prospective purchasers of the Bonds. The Village Board, acting through authorized officers, will provide to the Underwriter at the time of delivery of the Bonds, a certificate confirming that, to the best of its knowledge and belief, the Official Statement with respect to the Bonds, together with any supplements thereto, at the time of the adoption of the Bond Ordinance, and at the time of delivery of the Bonds, was true and correct in all material respects and did not at any time contain an untrue statement of a material fact or omit to state a material fact required to be stated where necessary to make the statements therein in light of the circumstances under which they were made, not misleading. /s/bruce Adams Village President Village of Bradley, Kankakee County, Illinois August 26,

49 APPENDIX A AUDITED FINANCIAL STATEMENTS The audited financial statements of the Village for the fiscal year ended April 30, 2014 (the Audit ), including the independent auditor s report accompanying the Audit, have been prepared by Wolf & Company LLP, Oakbrook Terrace, Illinois (the Auditor ). The Village has not requested the Auditor to update information contained in the Audit nor has the Village requested that the Auditor consent to the use of the Audit in this Official Statement. Other than as expressly set forth in this Official Statement, the financial information contained in the Audit has not been updated since the date of the Audit. The inclusion of the Audit in this Official Statement in and of itself is not intended to demonstrate the fiscal condition of the Village since the date of the Audit. Specific questions or inquiries relating to the financial information of the Village since the date of the Audit should be directed to Mark Pries, Finance Director of the Village. A-1

50 Wolf >v Company LLP { "11/1/( () jjfi/,/t'( I Ii I (I((II/fllll,f Wolf{~l\' Company Oakbrook Terrace ' Chicago INDEPENDENT AUDITOR'S REPORT The Honorable President Members of the Board of Trustees Village of Bradley, Illinois We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the Village of Bradley, Illinois, as of and for the year ended April 30, 2014, and the related notes to the financial statements, which collectively comprise the Village's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of fmancial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these fmancial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fmancial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fmancial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective fmancial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of Bradley, Illinois, as of April 30, 2014, and the respective changes in fmancial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. PKF A PKF International Member Firm 1901 S. Meyers Road, Suite 500 I Oakbrook Terrace, Illinois A mail1' /tLY.

51 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information for the General Fund and major Special Revenue funds, and analysis of funding progress and employer contributions for the Village's defmed benefit pension plans and other post-employment benefit plan on pages 3-12 and be presented to supplement the basic financial statements. Such information, although not a part of the basic fmancial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of fmancial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's response to our inquiries, the basic fmancial statements, and other knowledge we obtained during our audit of the basic fmancial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Bradley, Illinois' basic financial statements. The combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic fmancial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic fmancial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic fmancial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund fmancial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Oakbrook Terrace, Illinois October 6, 2014 LLf 2 A-3

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57 VILLAGE OF BRADLEY, ILLINOIS Statement of Net Position AEril 30, 2014 Governmental Business-type Activities Activities Total Assets Current Assets Cash and Deposits $ 5,351, ,815 5,638,307 Investments 6,010,213 6,010,213 Receivables, Net Allowance Accounts Receivable 269, , ,574 Property Tax 2,037, ,800 2,464,737 Due from Other Governments 2,268,100 2,268,100 Loans 206, ,533 Accrued Interest Other 1,926 1,926 Prepaid Expense 130, ,372 Inventory (Fuel) 10,857 10,857 Due from Fiduciary Funds Total Current Assets 16,287, ,126 17,214,223 Noncurrent Assets Loans Receivable 353, ,585 Due from Joint Venture 221, ,145 Non-depreciable Capital Assets 6,494,488 6,494,488 Capital Assets, Depreciable 29,100,400 12,935,421 42,035,821 Accumulated Depreciation {12,704,508} {6,085,214} {18,789,722} Total Non-current Assets 23,243,965 7,071,352 30,315,317 Total Assets 39,531,062 7,998, Liabilities Current Liabilities Accounts Payable 424,001 12, ,227 Interest Payable 109,192 94, ,994 Other Payables 281,047 11, ,248 Current Portion of Long-Term Debt 759, ,676 1,041,270 Total Current Liabilities 1,573, ,905 1,973,739 Non-current Liabilities 9,784, 859 5,113,397 14, 898,256 Total Liabilities 11,358,693 5,513,302 16,871,995 Deferred Inflows of Resources Unavailable Property Taxes 2,037, ,800 2,464,737 Unavailable License Revenue 53,300 53,300 Total Deferred Inflows of Resources 2,091, ,800 2,518,037 Net Position Net Investment in Capital Assets 17,121,776 1,535,318 18,657,094 Restricted for Economic Development 1,422,756 1,422,756 Street Maintenance 521, ,989 Debt Service 2,730 2,730 Capital Projects 175, ,231 InfrastructurelDevelopment 133, ,363 Parks 363, ,391 Public Safety 62,273 62,273 Unrestricted 6,277, ,058 6,800,681 Total Net Position $ 26,081,132 2,058,376 28,139,508 See Independent Auditor's Report and accompanying Notes to the Financial Statements. 13 A-9

58 VILLAGE OF BRADLEY, ILLINOIS Statement of Activities For the Year Ended April 30, 2014 FunctionslPrograms Expenses Charges for Services Program Revenues Operating Grants and Contributions Capital Grants and Contributions Governmental Activities General Government Public Safety Public Works Public Property Building Standards Community Development Employee Benefits Interest on Long-Term Debt Total Governmental Activities $ 3,919,323 6,265,295 2,163, , , ,710 27, ,627 13,959, , ,227 1,025 11, ,598 1,474, , ,107 Business-type Activities Sewer 2,057,288 1,867,598 Total Primary Government $ 16,016,359 3,342, ,107 General Revenues Property Taxes State Shared Taxes Sales Income Other Investment Earnings Miscellaneous Gain on Sale of Capital Assets Total General Revenues Change in Net Position Net Position - Beginning (as Restated) Net Position - Ending See Independent Auditor's Report and accompanying Notes to the Financial Statements. A-10 14

59 Net (Expense) Revenue and Chan~es in Net Assets Governmental Business-type Activities Activities Total (3,528,583) (3,528,583) (4,375,961) (4,375,961) (2,162,536) (2,162,536) (251,681) (251,681) (329,328) (329,328) (490,710) (490,710) (27,047) (27,047) (327,627) (327,627) (11,493,473) (11,493,473) ~189,690} ~189,690} (11,493,473) (189,690) (11,683,163) 2,926, ,744 3,211,319 6,210,839 6,210,839 1,515,292 1,515, , ,438 63, , , , ,223 10,110 10,110 11,316, ,551 11,709,629 (177,395) 203,861 26,466 26,258,527 1,854,515 28,1l3,042 26,081,132 2,058,376 28,l39, A-11

60 VILLAGE OF BRADLEY, ILLINOIS Governmental Funds Balance Sheet A[!ril 30, 2014 Nonmajor Total Revolving Governmental Governmental General Loan Funds Funds Assets Cash and Deposits $ 3,141,443 1,355, ,730 5,351,492 Investments 4,776,677 1,233,536 6,010,213 Receivables Property Taxes 2,037,937 2,037,937 State Taxes 2,168,108 99,992 2,268,100 Loans 560, ,118 Accounts 269, ,063 Accrued Interest Other 1,926 1,926 Inventory (Fuel) 10,857 10,857 Prepaid Item 130, ,372 Due from Other Funds Due from Fiduciary Funds Total Assets $ 12,537,086 1,915,437 2,188,258 16,640,781 Liabilities Accounts Payable $ 420,821 3, ,001 Other Payables 281, ,047 Due to Other Funds Total Liabilities 701,868 3, ,147 Deferred Inflows of Resources Unavailable Property Taxes 2,037,937 2,037,937 Unavailable License Revenue 53,300 53,300 Total Deferred Inflows of Resources 2,091,237 2,091,237 Fund Balances Nonspendable Inventory (Fuel) 10,857 10,857 Prepaid Item 130, ,372 Loans 353, ,585 Restricted for Economic Development 1,422,756 1,422,756 Street Maintenance 521, ,989 Debt Service 2,730 2,730 Capital Projects 175, ,231 InfrastructurelDevelopment 133, ,363 Parks 363, ,391 Public Safety 62,273 62,273 Committed for Economic Development 1,561,852 1,561,852 Unassigned 9,105,998 9,105,998 Total Fund Balances 9,743,981 1,915,437 2,184,979 13,844,397 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 12,537,086 1,915,437 2,188,258 16,587,481 See Independent Auditor's Report and accompanying Notes to the Financial Statements. A-12 16

61 VILLAGE OF BRADLEY, ILLINOIS Reconciliation of Balance Sheet - Governmental Funds to Statement of Net Position April 30, 2014 Total Fund Balances - Governmental Funds $ 13,844,397 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Bonds Payable Capital Leases Payable Notes Payable Police and Fire Net Pension Obligation IMRF Net Pension Obligation OPEB Obligation Interest on long-term liabilities is shown as an expenditure when paid by the funds, but accrued in the Statement of Net Position. Accrued compensated absences are reported in the Statement of Net Position, but are not included in the fund financial statements. Net Position of Governmental Activities 22,890,380 (5,400,821) (317,431) (50,352) (674,705) (61,055) (2,574,761) (109,192) (1,465,328) $ 26,081,132 See Independent Auditor's Report and accompanying Notes to the Financial Statements. 17 A-13

62 VILLAGE OF BRADLEY, ILLINOIS Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended April 30, 2014 Nonmajor Total Revolving Governmental Governmental General Loan Funds Funds Revenues Taxes Property $ 2,017, ,621 2,926,575 State Shared 8,117, ,506 8,595,886 Licenses and Permits 282, ,518 Intergovernmental 438, , ,790 Charges for Services 503, ,457 Fines and Forfeitures 354,754 28, ,006 Investment Income 42,375 19,658 1,940 63,973 Recovery of Bad Debts 13,919 13,919 Miscellaneous 402,242 19, ,442 Total Revenues 12,159,617 33,577 1,578,372 13,771,566 Expenditures Current General Government 3,197,300 3,197,300 Public Safety 6,650,650 52,128 6,702,778 Public Works 1,917, ,797 2,333,850 Public Property 263, ,582 Building Standards 501, ,926 Community Development 490, ,710 Employee Benefits 27,047 27,047 Debt Service Principal 245, ,000 Interest 340, ,685 Capital Outlay 279, ,165 Total Expenditures 12,557,558 1,824,485 14,382,043 Excess (Deficiency) of Revenues over Expenditures (397,941) 33,577 (246,113) (610,477) Other Financing Sources (Uses) Transfers In 214, ,885 Transfers Out (214,885) (214,885) Capital Lease Proceeds 159, ,860 Proceeds from Sale of Capital Assets 10,110 10,110 Total Other Financing Sources (Uses) (44,9] 5) 214, ,970 Net Change in Fund Balances (442,856) 33,577 (31,228) (440,507) Fund Balances - Beginning (as Restated) 10,186,837 1,881,860 2,216,207 14,284,904 Fund Balances - Ending $ 9,743,981 1,915,437 2,184,979 13,844,397 See Independent Auditor's Report and accompanying Notes to the Financial Statements. A-14 18

63 VILLAGE OF BRADLEY, ILLINOIS Reconciliation ofthe Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended April 30, 2014 Net Change in Fund Balances - Total Governmental Funds $ (440,507) Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures; however, they are capitalized and depreciated in the Statement of Activities. Depreciation in the Statement of Activities does not require the use of current financial resources and, therefore, is not reported as an expenditure in governmental funds. The issuance of long-term debt is reported as an other financing source when issued in governmental funds but as a liability outstanding in the Statement of Net Position. Capital Lease Payable The repayment of long-term debt is reported as an expenditure when due in governmental funds but as a reduction of principal outstanding in the Statement of Activities. General Obligation Bonds Bond Premium Amortization Loans Payable Capital Lease Payable Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Increase in Police and Fire Net Pension Obligations Increase in IMRF Net Pension Obligation Increase in Compensated Absences Decrease in Accrued Interest Change in Net Position of Governmental Activities 1,018,456 (969,249) (159,860) 245,000 8,688 15, ,933 23,554 (1,758) (40,544) 4,370 $ (177,395) See Independent Auditor's Report and accompanying Notes to the Financial Statements. 19 A-15

64 VILLAGE OF BRADLEY, ILLINOIS Proprietary Fund - Sewer Fund Statement of Net Position April 30, 2014 ASSETS Current Assets Cash and Deposits $ 286,815 Receivables (Net of Allowance for Uncollectibles) Accounts 213,511 Property Taxes 426,800 Total Current Assets Capital Assets Buildings and Equipment 12,935,421 Less Accumulated Depreciation ~6! O85, 2142 Total Capital Assets, Net of Accumulated Depreciation 6,850,207 Noncurrent Assets Due from Joint Venture 221,145 LIABILITIES Total Assets 7,998,478 Current Liabilities Accounts Payable 12,226 Interest Payable 94,802 Lease Payable 51,630 Compensated Absences 20,046 Current Portion - Bonds Payable 210,000 Other Payables 11,201 Total Current Liabilities 399,905 Noncurrent Liabilities Lease Payable 163,614 Compensated Absences 60,138 Bonds Payable 4,889,645 5,113,397 Total Liabilities 5,513,302 DEFERRED INFLOWS OF RESOURCES Unavailable Property Taxes 426,800 NET POSITION Net Investment in Capital Assets 1,535,318 Unrestricted 523,058 Total Net Position $ 2,058,376 See Independent Auditor's Report and accompanying Notes to the Financial Statements. A-16 20

65 VILLAGE OF BRADLEY, ILLINOIS Proprietary Fund - Sewer Fund Statement of Revenues, Expenses, and Change in Net Position For the Year Ended Apri130, 2014 Operating Revenues User Charges Operating Expenses Salaries and Wages Employee Benefits Professional Fees Materials, Repairs and Maintenance Utilities Depreciation Sewer Fees Other Operating Expenses Total Operating Expenses Operating Income Nonoperating Revenues (Expenses): Investment Income Property Taxes Tap-On Fees Interest Expense Other Income Total Nonoperating Revenues (Expenses) Change in Net Position Net Position Beginning Ending $ 1,867, , ,715 60,330 48,615 12, , ,182 70,928 1,835,195 32, ,744 70,900 (222,093) 37, , ,861 1,854,515 $ 2,058,376 See Independent Auditor's Report and accompanying Notes to the Financial Statements. 21 A-17

66 VILLAGE OF BRADLEY, ILLINOIS Proprietary Fund - Sewer Fund Statement of Cash Flows For the Year Ended April 30, 2014 Cash Flows from Operating Activities Receipts from Customers $ 1,797,140 Other Receipts 37,431 Payments to Suppliers (I,229,363) Payments to Employees (257, ,011 Cash Flows from Noncapital Financing Activities Property Taxes 284,744 Cash Flows from Capital and Related Financing Activities Tap-On Fees 70,900 Payment of Bond Principal (204,426) Payment of Capital Leases (57,588) Interest Paid (221,374) Purchase of Capital Assets (95,180) (507,668) Cash Flows from Investing Activities Interest and Dividends 476 Net Increase in Cash and Deposits 125,563 Cash and Deposits, Beginning 161,252 Cash and Deposits, Ending $ 286,815 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating Income $ 32,403 Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities Depreciation Expense 375,512 Other Receipts 37,431 Change in Assets and Liabilities Increase in Receivables, Net (213,391) Decrease in Accounts and Other Payables (17,837) Increase in Deferred Revenue 142,933 Decrease in Compensated Absences {9,0402 Net Cash Provided by Operating Activities $ 348,011 Schedule of Non-Cash Capital and Related Financing Activities Assets Acquired Under Capital Lease $ 272,832 See Independent Auditor's Report and accompanying Notes to the Financial Statements. A-18 22

67 VILLAGE OF BRADLEY, ILLINOIS Pension Trust Fund Statement of Fiduciary Net Position April 30, 2014 Assets Cash and Deposits Investments, at Fair Value Money Market Mutual Fund Corporate Bonds U.S. Government and Agency Obligations Municipal Bonds Equity Securities Mutual Funds Receivables Accrued Interest Total Assets Liabilities Accounts Payable Payroll Withholding Due to Village Total Liabilities Net Position Held in Trust for Pension Benefits $ 487, ,629 1,508,325 3,468,930 55,329 6,277,723 1,436,276 4,208 13,859, ,445 $ 13,858,408 See Independent Auditor's Report and accompanying Notes to the Financial Statements. 23 A-19

68 VILLAGE OF BRADLEY, ILLINOIS Pension Trust Fund Statement of Change in Fiduciary Net Position For the Year Ended April 30, 2014 Additions Contributions Village Contributions Police and Fire Contributions Total Contributions Investment Income Interest Income Net Appreciation in Fair Value ofinvestments Total Investment Income Less Investment Expense Net Investment Income Total Additions Deductions Administration Benefits and Refunds Total Deductions Change in Net Position Net Position May 1 April 30 $ 878, ,743 1,125, ,873 1,068,554 1,242,427 ~135,328) 1,107,099 2,232,711 21, , ,809 1,452,902 12,405,506 $ 13,858,408 See Independent Auditor's Report and accompanying Notes to the Financial Statements. A-20 24

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