Final Official Statement Dated March 3, 2016

Transcription

1 New Issue Investment Ratings: Standard & Poor s AA+/Stable Final Official Statement Dated March 3, 2016 Subject to compliance by the District with certain covenants, in the opinion of Chapman and Cutler LLP, Bond Counsel ( Bond Counsel ), under present law, interest on the Series 2016A 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 Series 2016A Bonds is not exempt from present State of Illinois income taxes. See TAX EXEMPTION - SERIES 2016A BONDS herein for a more complete discussion. Interest on the Taxable Series 2016B Bonds is includible in gross income of the owners thereof for federal income tax purposes. Interest on the Taxable Series 2016B Bonds is not exempt from present State of Illinois income taxes. See TAX TREATMENT - TAXABLE SERIES 2016B BONDS herein for a more complete discussion. FOREST PRESERVE DISTRICT OF KANE COUNTY Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B Dated Date of Delivery Book-Entry Not Bank Qualified Due Serially As Described Herein The $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A (the Series 2016A Bonds ), and the $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B (the Taxable Series 2016B Bonds, and together with the Series 2016A Bonds, the Bonds ), are being issued by the Forest Preserve District of Kane County, Kane County, Illinois (the District ). Interest on the Bonds is payable semiannually on June 15 and December 15 of each year, commencing June 15, The Bonds will be issued using a book-entry system. The Depository Trust Company ( DTC ), New York, New York, will act as securities depository for the Bonds. The ownership of one fully registered Bond for each maturity and series will be registered in the name of Cede & Co., as nominee for DTC and no physical delivery of Bonds will be made to purchasers. The Bonds will mature on December 15, in the years and amounts as detailed herein. Interest is calculated based on a 360-day year of twelve 30-day months. OPTIONAL REDEMPTION The Series 2016A Bonds are not subject to optional redemption prior to maturity. The Taxable Series 2016B Bonds due December 15, , inclusive, are non-callable. The Taxable Series 2016B Bonds due December 15, , are callable in whole or in part on any date on or after December 15, 2024, at a price of par plus accrued interest to the redemption date. If less than all the Taxable Series 2016B Bonds are called, they shall be redeemed in such principal amounts and from such maturities as determined by the District and within any maturity by lot. See OPTIONAL REDEMPTION - Taxable Series 2016B Bonds herein. PURPOSE, LEGALITY AND SECURITY The proceeds of the Series 2016A Bonds will be used to advance refund the District s outstanding General Obligation Limited Tax (Capital Appreciation) Bonds, Series 2006, and to pay the costs of issuance of the Series 2016A Bonds. The proceeds of the Taxable Series 2016B Bonds will be used to advance refund a portion of the District s outstanding Taxable General Obligation Bonds (Alternate Revenue Source), Series 2008 (the Series 2008 Bonds ), and to pay the costs of issuance of the Taxable Series 2016B Bonds. See PLAN OF FINANCING herein. In the opinion of Bond Counsel, the Series 2016A Bonds are valid and legally binding upon the District and are payable from any funds of the District legally available for such purpose, and all taxable property in the District is subject to the levy of taxes to pay the same without limitation as to rate, except that the rights of the owners of the Series 2016A Bonds and the enforceability of the Series 2016A Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. The amount of said taxes that may be extended to pay the Series 2016A Bonds is limited as provided by law. See DESCRIPTION OF THE SERIES 2016A BONDS herein. In the opinion of Bond Counsel, the Taxable Series 2016B Bonds are valid and legally binding upon of the District and are payable (a) on a parity with the outstanding Series 2008 Bonds, from moneys lawfully available in the District s general fund, and (b) from ad valorem taxes levied against all taxable property in the District without limitation as to rate or amount, except that the rights of the owners of the Taxable Series 2016B Bonds and the enforceability of the Taxable Series 2016B Bonds may be limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting creditors rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. See DESCRIPTION OF THE TAXABLE SERIES 2016B BONDS herein. This Final Official Statement is dated March 3, 2016, and has been prepared under the authority of the District. An electronic copy of this Final Official Statement is available from the web site under Debt Auction Center/Final Official Statements Sales Calendar/Competitive. Additional copies may be obtained from Mr. Kenneth Stanish, Director of Finance, Forest Preserve District of Kane County, 1996 South Kirk Road, Suite 320, Geneva, Illinois 60134, or from the Municipal Advisor to the District:

2 No dealer, broker, salesman or other person has been authorized by the District to give any information or to make any representations with respect to the Bonds other than as contained in the Official Statement or the Final Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized by the District. Certain information contained in the Official Statement and the Final Official Statement may have been obtained from sources other than records of the District and, while believed to be reliable, is not guaranteed as to completeness. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE DISTRICT SINCE THE RESPECTIVE DATES THEREOF. References herein to laws, rules, regulations, ordinances, resolutions, agreements, reports and other documents do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference to the particular document, the full text of which may contain qualifications of and exceptions to statements made herein. Where full texts have not been included as appendices to the Official Statement or the Final Official Statement they will be furnished on request. This Final Official Statement does not constitute an offer to sell, or solicitation of an offer to buy, any securities to any person in any jurisdiction where such offer or solicitation of such offer would be unlawful. (i)

3 TABLE OF CONTENTS BOND ISSUE SUMMARY... 1 SERIES 2016A BONDS... 2 TAXABLE SERIES 2016B BONDS... 3 FOREST PRESERVE DISTRICT OF KANE COUNTY... 4 DESCRIPTION OF THE SERIES 2016A BONDS... 4 DESCRIPTION OF THE TAXABLE SERIES 2016B BONDS... 5 Security: Alternate Revenue Source and Tax Levy... 5 Highlights of Alternate Bonds... 6 Refunding Alternate Bonds... 6 Taxable Series 2016B Bond Fund... 7 Abatement of Taxable Series 2016B Pledged Taxes... 7 Certain Risk Factors... 7 THE DISTRICT... 7 General Information... 7 Government... 9 Forest Preserve Facilities... 9 Education Transportation SOCIOECONOMIC INFORMATION Housing Income PLAN OF FINANCING DEBT INFORMATION PROPERTY ASSESSMENT AND TAX INFORMATION REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES Tax Levy and Collection Procedures Exemptions Property Tax Extension Limitation Law Truth in Taxation Law FINANCIAL INFORMATION Budgeting Investment Policy Financial Reports Summary Financial Information No Consent or Updated Information Requested of the Auditor EMPLOYEE RETIREMENT AND OTHER POSTEMPLOYMENT BENEFITS OBLIGATIONS REGISTRATION, TRANSFER AND EXCHANGE TAX EXEMPTION SERIES 2016A BONDS TAX TREATMENT - TAXABLE SERIES 2016B BONDS CONTINUING DISCLOSURE THE UNDERTAKING Annual Financial Information Disclosure Reportable Events Disclosure Consequences of Failure of the District to Provide Information Amendment; Waiver Termination of Undertaking Additional Information Dissemination of Information; Dissemination Agent OPTIONAL REDEMPTION Series 2016A Bonds Taxable Series 2016B Bonds LITIGATION FINAL OFFICIAL STATEMENT AUTHORIZATION INVESTMENT RATINGS CERTAIN LEGAL MATTERS UNDERWRITING Series 2016A Bonds Taxable Series 2016B Bonds MUNICIPAL ADVISOR CERTIFICATION APPENDIX A - FISCAL YEAR 2015 AUDITED FINANCIAL STATEMENTS APPENDIX B - DESCRIBING BOOK-ENTRY-ONLY ISSUANCE APPENDIX C - PROPOSED FORMS OF OPINIONS OF BOND COUNSEL SERIES 2016A BONDS TAXABLE SERIES 2016B BONDS APPENDIX D - EXCERPTS OF FISCAL YEAR 2015 AUDITED FINANCIAL STATEMENTS RELATING TO THE DISTRICT S PENSION PLANS AND OTHER POSTEMPLOYMENT BENEFITS (ii)

4 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B BOND ISSUE SUMMARY This Bond Issue Summary is expressly qualified by the entire Final Official Statement, which is provided for the convenience of potential investors and which should be reviewed in its entirety by potential investors. The following descriptions apply equally to the Series 2016A Bonds and the Taxable Series 2016B Bonds. Other terms specific to each series are provided separately herein. Issuer: Forest Preserve District of Kane County, Kane County, Illinois. Dated Date: Date of delivery, expected to be on or about March 23, Authorization: Investment Ratings: Not Bank Qualified: Bond Registrar/Paying Agent Escrow Agent: Verification Agent: By vote of the Board of Commissioners; and the Downstate Forest Preserve District Act of the State of Illinois, as amended, the Forest Preserve Refunding Bond Act of the State of Illinois, as amended, and the Local Government Debt Reform Act of the State of Illinois, as amended. Each series of the Bonds has been rated AA+/Stable by Standard & Poor s Ratings Services, a Division of The McGraw-Hill Companies, New York, New York. See INVESTMENT RATINGS herein. The Bonds are not qualified tax-exempt obligations under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. The Bank of New York Mellon Trust Company, National Association, Chicago, Illinois. Dunbar, Breitweiser & Company, LLP, Bloomington, Illinois. Delivery: The Bonds are expected to be delivered on or about March 23, Book-Entry Form: Denomination: Municipal Advisor: The Bonds will be registered in the name of Cede & Co. as nominee for The Depository Trust Company ( DTC ), New York, New York. DTC will act as securities depository of the Bonds. See APPENDIX B herein. $5,000 or integral multiples thereof. Speer Financial, Inc., Chicago, Illinois. 1

5 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B SERIES 2016A BONDS Issue: $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A. Interest Due: Each June 15 and December 15, commencing June 15, Principal Due: No Optional Redemption: Purpose: Security: Tax Exemption: Serially each December 15, commencing December 15, 2020 through 2025, as detailed below. The Series 2016A Bonds are not subject to optional redemption prior to maturity. The proceeds of the Series 2016A Bonds will be used to advance refund the District s outstanding General Obligation Limited Tax (Capital Appreciation) Bonds, Series 2006, and to pay the costs of issuance of the Series 2016A Bonds. See PLAN OF FINANCING herein. In the opinion of Bond Counsel, the Series 2016A Bonds are valid and legally binding upon the District and are payable from any funds of the District legally available for such purpose, and all taxable property in the District is subject to the levy of taxes to pay the same without limitation as to rate, except that the rights of the owners of the Series 2016A Bonds and the enforceability of the Series 2016A Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. The amount of said taxes that may be extended to pay the Series 2016A Bonds is limited as provided by law. See DESCRIPTION OF THE SERIES 2016A BONDS herein. Chapman and Cutler LLP, Chicago, Illinois, will provide an opinion as to the tax exemption of the interest on the Series 2016A Bonds as discussed under TAX EXEMPTION - SERIES 2016A BONDS in this Final Official Statement. AMOUNTS, MATURITIES, INTEREST RATES, PRICES OR YIELDS AND CUSIP NUMBERS (1) Principal Due Interest Yield or CUSIP Principal Due Interest Yield or CUSIP Amount Dec. 15 Rate Price Number(1) Amount Dec. 15 Rate Price Number(1) $1,900, % 1.350% LS5 $445, % 2.050% LV8 2,000, % 1.600% LT3 470, % 2.200% LW6 425, % 1.850% LU0 485, % 2.350% LX4 (1) CUSIP numbers appearing in this Final Official Statement have been provided by the CUSIP Service Bureau, which is managed on behalf of the American Bankers Association by S&P Capital IQ, a part of McGraw Hill Financial Inc. The District is not responsible for the selection of CUSIP numbers and makes no representation as to their correctness on the Bonds or as set forth on page 2 of this Final Official Statement. 2

6 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B TAXABLE SERIES 2016B BONDS Issue: $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B. Interest Due: Each June 15 and December 15, commencing June 15, Principal Due: Optional Redemption: Purpose: Security: No Tax Exemption: Serially each December 15, commencing December 15, 2016 through 2027, as detailed below. The Taxable Series 2016B Bonds maturing on or after December 15, 2025, are callable at the option of the District on any date on or after December 15, 2024, at a price of par plus accrued interest. See OPTIONAL REDEMPTION - Taxable Series 2016B Bonds herein. The proceeds of the Taxable Series 2016B Bonds will be used to advance refund a portion of the District s outstanding Taxable General Obligation Bonds (Alternate Revenue Source), Series 2008 (the Series 2008 Bonds ), and to pay the costs of issuance of the Taxable Series 2016B Bonds. See PLAN OF FINANCING herein. In the opinion of Bond Counsel, the Taxable Series 2016B Bonds are valid and legally binding upon of the District and are payable (a) on a parity with the outstanding Series 2008 Bonds, from moneys lawfully available in the District s general fund, and (b) from ad valorem taxes levied against all taxable property in the District without limitation as to rate or amount, except that the rights of the owners of the Taxable Series 2016B Bonds and the enforceability of the Taxable Series 2016B Bonds may be limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting creditors rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. See DESCRIPTION OF THE TAXABLE SERIES 2016B BONDS herein. Interest on the Taxable Series 2016B Bonds is includible in gross income of the owners thereof for federal income tax purposes. See TAX TREATMENT - TAXABLE SERIES 2016B BONDS herein. Interest on the Taxable Series 2016B Bonds is not exempt from present State of Illinois income taxes. AMOUNTS, MATURITIES, INTEREST RATES, PRICES OR YIELDS AND CUSIP NUMBERS (1) Principal Due Interest Yield or CUSIP Principal Due Interest Yield or CUSIP Amount Dec. 15 Rate Price Number(1) Amount Dec. 15 Rate Price Number(1) $120, % 0.700% LY2 $515, % 2.300% ME5 465, % 1.000% LZ9 530, % 2.500% MF2 475, % 1.200% MA3 545, % 2.700% MG0 485, % 1.500% MB1 560, * 3.000% 2.850% MH8 495, % 1.800% MC9 575, % 3.000% MJ4 505, % 2.050% MD7 590, % 3.150% MK1 *This maturity has been priced to the call date. (1) CUSIP numbers appearing in this Final Official Statement have been provided by the CUSIP Service Bureau, which is managed on behalf of the American Bankers Association by S&P Capital IQ, a part of McGraw Hill Financial Inc. The District is not responsible for the selection of CUSIP numbers and makes no representation as to their correctness on the Bonds or as set forth on page 3 of this Final Official Statement. 3

7 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B FOREST PRESERVE DISTRICT OF KANE COUNTY Kane County, Illinois Board of Commissioners Michael Kenyon President Philip Lewis Secretary Mark Davoust President Pro Tem/Treasurer Deborah Allan Joseph Haimann Brian Pollock Maggie Auger John J. Hoscheit Douglas Scheflow Theresa Barreiro Don Ishmael Monica Silva Cristina Castro Kurt Kojzarek Thomas (T.R.) Smith Brian W. Dahl Chris Lauzen Susan Starrett Drew Frasz Bill Lenert Maria Vazquez Rebecca Gillam John Martin Barbara Wojnicki Myrna Molina Officials Kenneth Stanish Director of Finance Monica A. Meyers Executive Director Patrick M. Kinnally, Esq. Counsel for the District DESCRIPTION OF THE SERIES 2016A BONDS Local governments, including the Forest Preserve District of Kane County, Kane County, Illinois (the District ), are authorized to issue limited tax bonds in lieu of general obligation bonds that have otherwise been authorized by applicable law. The Series 2016A Bonds are limited tax bonds and are issued pursuant to the Downstate Forest Preserve District Act of the State of Illinois, as supplemented and amended (the Act ), and the Forest Preserve Refunding Bond Act of the State of Illinois, as supplemented and amended (the Refunding Bond Act ), and particularly as supplemented by the Local Government Debt Reform Act of the State of Illinois, as amended (the Debt Reform Act ). Although the obligation of the District to pay the Series 2016A Bonds is a general obligation under the Act and the Refunding Bond Act and all taxable property in the District is subject to the levy of ad valorem taxes to pay the Series 2016A Bonds without limitation as to rate, the amount of said taxes that will be extended to pay the Series 2016A Bonds is limited by the Property Tax Extension Limitation Law of the State of Illinois, as amended (the Tax Extension Limitation Law ). The District has authorized the issuance of the Series 2016A Bonds pursuant to a Bond Ordinance adopted by the Board of Commissioners of the District on the 10 th day of November, 2015 (the Series 2016A Bond Ordinance ). 4

8 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B The Debt Reform Act provides that the Series 2016A Bonds are payable from the debt service extension base of the District (the Base ), which is an amount equal to that portion of the extension for the District for the 1994 levy year constituting an extension for payment of principal and interest on bonds issued by the District without referendum, but not including alternate bonds issued under Section 15 of the Debt Reform Act or refunding obligations issued to refund or to continue to refund obligations of the District initially issued pursuant to referendum, increased each year, commencing with the 2009 levy year, by the lesser of 5% or the percentage increase in the Consumer Price Index (as defined in the Tax Extension Limitation Law) during the 12-month calendar year preceding the levy year. The Tax Extension Limitation Law further provides that the annual amount of taxes to be extended to pay the Series 2016A Bonds and all other limited bonds heretofore and hereafter issued by the District shall not exceed the Base. After the refunding of the District s outstanding General Obligation Limited Tax (Capital Appreciation) Bonds, Series 2006 (the Series 2006 Bonds ), the Series 2016A Bonds will constitute one of three series of outstanding limited bonds of the District that are payable from the Base. Payments on the Series 2016A Bonds from the Base will be made on a parity with the payments on the District s outstanding General Obligation Limited Tax Refunding Bonds, Series 2011B, and General Obligation Limited Tax Refunding Bonds, Series 2015A. The District is authorized to issue from time to time additional limited bonds payable from the Base, as permitted by law, and to determine the lien priority of payments to be made from the Base to pay the District s limited bonds. See below for a calculation of the amount of the debt service extension base margin of the District. Non-Referendum Available Debt Service Extension Base Margin(1) Debt Service Debt Service Outstanding Less: Refunded for the Available Debt Calendar Levy Extension Debt Series 2006 Bonds Series 2016A Total Service Extension Year Year Base(2) Service(3) Debt Service Bonds Debt Service Base Margin(4) $3,762,709 $ 3,406,990 $ 0 $ 208,326 $ 3,615,316 $ 147, ,762,709 3,571, ,250 3,858,000 (95,291)(4) ,762,709 3,614, ,250 3,900,600 (137,891)(4) ,762,709 3,030,750 (935,000) 286,250 2,382,000 1,380, ,762,709 3,575,150 (3,365,000) 2,186,250 2,396,400 1,366, ,762,709 3,575,150 (3,365,000) 2,191,250 2,401,400 1,361, ,762,709 2,420,150 (535,000) 516,250 2,401,400 1,361, ,762,709 1,884, ,000 2,399,900 1,362, ,762,709 1,883, ,750 2,400,900 1,361, ,762,709 1,884, ,250 2,394,150 1,368,559 Total... $28,847,240 $(8,200,000) $7,502,826 $28,150,066 Notes: (1) Source: The District. (2) Under existing law, the DSEB will increase each year by the lesser of 5% or the percentage increase in the Consumer Price Index. Because no such increase is assured to be greater than 0%, no increase is included after levy year The District's DSEB for levy year 2016 is $3,789,048, and a supplemental levy ordinance can be adopted by the District to access this and future DSEB amounts above the $3,762,709 presented in the table. (3) Includes the District's outstanding General Obligation Limited Tax (Capital Appreciation) Bonds, Series 2006, General Obligation Limited Tax Refunding Bonds, Series 2011B, and General Obligation Limited Tax Refunding Bonds, Series 2015A. (4) Any debt service in excess of the DSEB will be funded by deposits of the District on the delivery date of the Bonds. Security: Alternate Revenue Source and Tax Levy DESCRIPTION OF THE TAXABLE SERIES 2016B BONDS The Taxable Series 2016B Bonds are payable (a) on a parity with the District s outstanding Taxable General Obligation Bonds (Alternate Revenue Source), Series 2008 (the Series 2008 Bonds ), from moneys lawfully available in the District s general fund (the Pledged Revenues ), and (b) ad valorem taxes levied against all of the taxable property in the District without limitation as to rate or amount (the Taxable Series 2016B Pledged Taxes ). Pursuant to the Debt Reform Act, the District will pledge such monies to the payment of Taxable Series 2016B Bonds and shall covenant to provide for and apply the Pledged Revenues to the payment of the Series 2008 Bonds and the Taxable Series 2016B Bonds and the provision of not less than an additional 0.25 times debt service, which pledge and covenant shall constitute a continuing obligation of the District and continuing appropriation of the amounts received. For the prompt payment of the Taxable Series 2016B Bonds, the full faith, credit and resources of the District are irrevocably pledged. 5

9 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B In the Bond Ordinance authorizing the issuance of the Taxable Series 2016B Bonds (the Taxable Series 2016B Bond Ordinance, and together with the Series 2016A Bond Ordinance, the Bond Ordinances ), the District covenants and agrees with the purchasers and the owners of the Taxable Series 2016B Bonds that so long as any of the Taxable Series 2016B Bonds remain outstanding, the District will take no action or fail to take any action which in any way would adversely affect the ability of the District to collect the Pledged Revenues or, except for abatement of tax levies as permitted in the Taxable Series 2016B Bond Ordinance, to levy and collect the Taxable Series 2016B Pledged Taxes. The District and its officers will comply with all present and future applicable laws in order to assure that the Pledged Revenues will be available and that the Taxable Series 2016B Pledged Taxes will be levied, extended and collected as provided in the Taxable Series 2016B Bond Ordinance and deposited in the Taxable Series 2016B Bond Fund. Highlights of Alternate Bonds Section 15 of the Debt Reform Act provides that whenever revenue bonds have been duly authorized, a local government unit may issue its general obligation bonds in lieu of such revenue bonds as authorized, and such general obligation bonds may be referred to as alternate bonds. The Debt Reform Act also provides that whenever there exists a revenue source, a local government unit may issue alternate bonds. Such bonds are general obligation debt payable from the pledged revenues with the general obligation of the issuer acting as back-up security. The Debt Reform Act prescribes several conditions that must be met before alternate bonds may be issued. First, alternate bonds must be issued for a lawful corporate purpose. If issued in lieu of revenue bonds, the revenue bonds must be authorized under applicable law. Alternate bonds may be issued payable from either enterprise revenues or revenue sources, or both. Second, the question of issuance must be submitted to referendum if, within thirty (30) days after publication of an authorizing ordinance and notice of intent to issue alternate bonds, a petition signed by the greater of (i) 7.5% of the registered voters in the governmental unit or (ii) 200 of those registered voters or 15%, whichever is less, is filed. Third, the issuer must determine that the pledged revenue source or sources are sufficient in each year to provide not less than 1.25 times debt service of the proposed alternate bonds and all other outstanding alternate bonds of the issuer payable from the same revenue source. To the extent payable from one or more revenue sources, such sources shall have been determined by the governing body to provide in each year an amount not less than 1.25 times debt service on all alternate bonds payable from such revenue sources previously issued and outstanding and the alternate bonds proposed to be issued. Fourth, the pledged revenue source or sources must be pledged to the payment of the alternate bonds. Last, the governmental unit must covenant to provide for, collect and apply the pledged revenues to the payment of the alternate bonds and to provide for an amount equal to not less than an additional.25 times debt service. Refunding Alternate Bonds Section 15 of the Debt Reform Act provides that alternate bonds may be issued to refund or advance refund alternate bonds without meeting any of the conditions set forth in such section that would otherwise apply (see Highlights of Alternate Bonds above), if the term of the refunding bonds is no longer than the term of the refunded bonds and the debt service payable on the refunding bonds in each year is no more than the debt service payable in such year on the refunded bonds. These conditions will be met in connection with the issuance of the Taxable Series 2016B Bonds. 6

10 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B Taxable Series 2016B Bond Fund The District will deposit the appropriate Pledged Revenues and the Taxable Series 2016B Pledged Taxes into a separate Taxable Series 2016B Bond Fund, which is a trust fund established for the purpose of carrying out the covenants, terms and conditions imposed upon the District by the Taxable Series 2016B Bond Ordinance. The Taxable Series 2016B Bonds are secured by a pledge of all of the monies on deposit in the Taxable Series 2016B Bond Fund, and such pledge is irrevocable until the Taxable Series 2016B Bonds have been paid in full or until the obligations of the District are discharged under the Taxable Series 2016B Bond Ordinance. Abatement of Taxable Series 2016B Pledged Taxes Each year, whenever the Board determines that the Pledged Revenues or other funds are available and have been irrevocably deposited in the Taxable Series 2016B Bond Fund sufficient to provide an amount not less than 1.00 times debt service on all Outstanding Bonds in the next Bond Year (June 15 and December 15), the Treasurer shall, prior to the time the Taxable Series 2016B Pledged Taxes are extended in such year, direct the abatement of the Taxable Series 2016B Pledged Taxes otherwise to be extended in such year, and proper notification of such abatement shall be filed with the County Clerk in a timely manner to effect such abatement. The District covenants and agrees that it will not direct the County Clerk to abate any other taxes levied for general corporate purposes in a calendar year until sufficient Pledged Revenues have been deposited in the Taxable Series 2016B Bond Fund for the succeeding Bond Year and the abatement of the Taxable Series 2016B Pledged Taxes for such calendar year has been filed with the County Clerk. Certain Risk Factors The ability of the District to pay the Taxable Series 2016B Bonds from the Pledged Revenues may be limited by circumstances beyond the control of the District. There is no guarantee that the Pledged Revenues will continue to be available at current levels. To the extent that the Pledged Revenues may be insufficient to pay the Series 2008 Bonds and the Taxable Series 2016B Bonds, the Taxable Series 2016B Bonds are to be paid from the Taxable Series 2016B Pledged Taxes. If the Taxable Series 2016B Pledged Taxes are ever extended for the payment of the Taxable Series 2016B Bonds, the amount of the Taxable Series 2016B Bonds then outstanding will be included in the computation of indebtedness of the District for purposes of all statutory provisions or limitations until such time as an audit of the District shows that the Taxable Series 2016B Bonds have been paid from the Pledged Revenues for a complete fiscal year. General Information THE DISTRICT Organized in 1925 by public referendum, the District owns and operates 98 properties consisting of more than 20,000 acres. The District is located approximately 40 miles due west of Chicago s Loop business district, shares the same legal boundaries and tax base with Kane County, Illinois (the County ), and encompasses an area of approximately 600 square miles. Neighboring counties include McHenry County to the north, Cook and DuPage Counties to the east, Kendall County to the south and DeKalb County to the west. According to the 2010 U.S. Census, the District s population is 515,269. This is a 27.50% increase over the 2000 Census of 404,119, and a 62.30% increase over the 1990 Census of 317,471. Aurora and Elgin are the two largest cities within the District with 2010 Census populations of 197,899 and 108,188, respectively. Both cities extend into neighboring counties. 7

11 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B 8

12 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B Government Kane County Board members act as Commissioners of the Board of Commissioners (the Board ) of the District. The President of the Board is elected every two years by the Board and the President in turn appoints members, with the Board s approval, to serve on the Executive Committee. The Board and the Executive Committee handle the District business of preparing policies and acquiring open space for the citizens of the District. The District employs 73 full-time, 28 year-round and 56 seasonal personnel. Forest Preserve Facilities Since its inception, the District has conducted an extensive land acquisition program designed to preserve existing natural areas, to restore areas to natural condition, to create continuous bands of open space along major waterways and flood-prone areas, and to provide open space buffers between communities. The District holds properties at 92 different sites throughout the County, which include more than 20,000 acres of forests, streams, bike trails, a minor league class A baseball stadium, and recreational areas. In the preserved areas, there are recreational opportunities for picnicking, boating, fishing, snowmobiling, skiing, horseback riding, camping and bicycling. Settlers Hill Golf Course is a unique 18-hole golf course built partially on a landfill; Hughes Creek Golf Course is an 18-hole course; and Deer Valley Golf Course has 9 holes. In addition, the District is the owner of the Fox Valley Ice Arena. The District recognizes the important responsibility to preserve and protect the natural heritage of the County. To that end, the Board adopted an ordinance that designates unique areas in the District as Natural Areas. These designated Natural Areas are places where the native plant community survived through farming use and represent the original nature of the County. The 1843 Durant-Peterson House is a brick farmstead built in a simple Greek Revival style. The house has been restored as a living history museum representing the lifestyle and furnishings of the 1840 s. As costumed guides, Preservation Partners of the Fox Valley, a volunteer organization, welcomes the public throughout the year. Pioneer Sholes School is an authentically restored and furnished one room country school, used regularly as a classroom by students and teachers who want to relive a school day as it was 100 years ago. A collection of 19 th and 20 th century school texts, early official County education records and oral histories of one room schools are a few of the school s features. Colonel George and Nelle Fabyan came to the Fox River Valley in the early 1900 s. They developed a small farmhouse into an estate of nearly 600 acres called Riverbank, which became a showplace in Illinois. The Fabyan Villa Museum, a 1907 Frank Lloyd Wright redesign, contains Fabyan memorabilia and historical photographs. The 68-foot Fabyan Dutch Windmill is listed on the National Register of Historic Places and is on the west side of Route 25 in Geneva. The Fabyan Japanese Garden was built by Colonel and Mrs. Fabyan in 1914 and designed by Taro Otuska, a Japanese landscape architect. The garden was restored in 1971 and

13 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B Education Unit School District Number 46 serves the City of Elgin, the Village of South Elgin and the Village of Wayne; Unit School District Number 101 serves the City of Batavia; Unit School District Numbers 129, 131, and 204 serve the City of Aurora, the Village of Montgomery and the Village of North Aurora; Unit School District Number 302 serves the Village of Sugar Grove; Unit School District Number 303 serves the City of St. Charles; and Unit School District Number 304 serves the City of Geneva. Their combined enrollment is approximately 82,600, providing education to grades K-12. Elgin Community College District Number 509 and Waubonsee Community College District Number 516 provide continuing education, college transfer courses and associate degrees to area residents. Their combined enrollment is approximately 28,000. Four-year colleges and universities include Aurora University, Judson College in Elgin, North Central College in Naperville and Wheaton College. In addition, there are many opportunities for higher education throughout the Chicago metropolitan area. Transportation The District is served by several transportation facilities. Interstate 90 (the Northwest Tollway) serves Elgin and the northern part of the County. Interstate 88 (the East-West Tollway) serves the City of Aurora and the southern part of the County. Other main highways include U.S. Routes 20 and 30 and Illinois Routes 25, 31, 38, 47, 56, 64 and 72. The Union Pacific, Burlington Northern and the Milwaukee Road Railroads provide commuter train service to Chicago and rail freight service. SOCIOECONOMIC INFORMATION The following statistics pertain to Kane County (the County ) with additional comparisons to the State of Illinois (the State ). Following is a list of major employers located in the County. Major County Employers(1) Approximate Location Name Product/Service Employment Elgin... School District U Public School District... 4,170 Elgin... Chase... Credit Card Processing... 2,500 Aurora... Caterpillar Inc.... Construction Machinery... 2,300 Elgin... Sherman Hospital... General Hospital... 2,200 Aurora... Rush Copley Medical Center... Hospital & Medical Center... 2,000 Batavia... Fermi Research Alliance... High Energy Physics Research Laboratory... 1,700 Aurora... School District Number School System... 1,650 Geneva... Delnor-Community Hospital... General Hospital... 1,650 Sugar Grove... Waubonsee Community College... Comprehensive Community College... 1,460 Aurora... Presence Mercy Medical Center... Medical & Psychiatric Hospital... 1,320 Aurora... School District Number School System... 1,320 Geneva... Kane County... County Government... 1,316 Elgin... Elgin Mental Health Center... State Hospital... 1,300 Elgin... Presence St. Joseph Hospital... General Hospital... 1,300 Aurora... City of Aurora... City Government... 1,280 Aurora... Dreyer Medical Clinic... Medical Services... 1,200 Elgin... Elgin Riverboat Resort... Gaming... 1,200 Elgin... Sanfilippo & Son... Snack Foods Corporate Headquarters... 1,200 Note: (1) Source: 2015 Illinois Manufacturers Directory, 2015 Illinois Services Directory and a selective telephone survey. 10

14 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B The following tables show employment by industry and by occupation for the County and the State as reported by the U.S. Bureau of the Census, American Community Survey, 2010 to 2014 Estimates ( ACS ). Employment By Industry(1) The County The State Classification Number Percent Number Percent Agriculture, Forestry, Fishing and Hunting, and Mining... 1, % 63, % Construction... 14, % 308, % Manufacturing... 41, % 756, % Wholesale Trade... 10, % 181, % Retail Trade... 29, % 663, % Transportation and Warehousing, and Utilities... 12, % 353, % Information... 5, % 124, % Finance and Insurance, and Real Estate and Rental and Leasing... 17, % 442, % Professional, Scientific, and Management and Administrative and Waste Management Services... 32, % 681, % Educational Services and Health Care and Social Assistance... 47, % 1,391, % Arts, Entertainment and Recreation and Accommodation and Food Services... 20, % 544, % Other Services, Except Public Administration... 9, % 288, % Public Administration... 7, % 232, % Total , % 6,032, % Note: (1) Source: American Community Survey 5-Year estimates from the U.S. Bureau of the Census. Employment By Occupation(1) The County The State Classification Number Percent Number Percent Management, Business, Science and Arts... 84, % 2,204, % Service... 40, % 1,048, % Sales and Office... 65, % 1,500, % Natural Resources, Construction, and Maintenance... 18, % 441, % Production, Transportation, and Material Moving... 41, % 837, % Total , % 6,032, % Note: (1) Source: American Community Survey 5-Year estimates from the U.S. Bureau of the Census. Annual Average Unemployment Rates(1) Calendar The The Year County State % 5.8% % 4.6% % 5.1% % 6.4% % 10.0% % 10.5% % 9.7% % 8.9% % 9.2% % 7.1% 2015(2) % 5.9% Notes: (1) Source: Illinois Department of Employment Security. (2) Preliminary rates for the month of December

15 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B Housing ACS estimates that the median home value of the County s owner-occupied homes was $216,000, which compares with $175,700 for the State. The ACS estimated market value of specified owner-occupied units for the County and the State was as follows: Home Values(1) The County The State Value Number Percent Number Percent Less than $50, , % 243, % $50,000 to $99, , % 508, % $100,000 to $149, , % 525, % $150,000 to $199, , % 533, % $200,000 to $299, , % 663, % $300,000 to $499, , % 486, % $500,000 to $999, , % 188, % $1,000,000 or more % 45, % Total , % 3,194, % Note: (1) Source: American Community Survey 5-Year estimates from the U.S. Bureau of the Census. Mortgage Status(1) The County The State Value Number Percent Number Percent Housing Units with a Mortgage... 96, % 2,146, % Housing Units without a Mortgage... 30, % 1,048, % Total , % 3,194, % Note: (1) Source: American Community Survey 5-Year estimates from the U.S. Bureau of the Census. Income Per Capita Personal Income for the Highest Income Counties in the State(1) Rank DuPage County... $38, Lake County... 38, McHenry County... 33, Monroe County... 33, Piatt County... 31, Kendall County... 31, Will County... 30, McLean County... 30, Kane County... 30, Sangamon County... 30, Cook County... 30,468 Note: (1) Source: U.S. Bureau of the Census American Community 5-Year Estimates. 12

16 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B The following shows the median family income for counties in the Chicago metropolitan area. Ranking of Median Family Income(1) Ill. Family Ill. County Income Rank DuPage County...$96,330 1 Lake County... 92,910 2 Kendall County... 92,794 3 McHenry County... 88,699 4 Will County... 87,503 5 Kane County... 81,273 8 Cook County... 66, Note: (1) Source: U. S. Bureau of the Census, American Community Survey, estimates. ACS estimates that the County s median family income was $81,273. This compares to $70,967 for the State. The following table represents the estimated distribution of family incomes for the County and the State by ACS. Family Income(1) The County The State Income Number Percent Number Percent Under $10, , % 138, % $10,000 to $14, , % 84, % $15,000 to $24, , % 222, % $25,000 to $34, , % 252, % $35,000 to $49, , % 376, % $50,000 to $74, , % 577, % $75,000 to $99, , % 465, % $100,000 to $149, , % 553, % $150,000 to $199, , % 230, % $200,000 or more... 11, % 231, % Total , % 3,131, % Note: (1) Source: American Community Survey 5-Year estimates from the U.S. Bureau of the Census. ACS estimates that the County s median household income was $70,514. This compares to $57,166 for the State. The following table represents the estimated distribution of household incomes for the County and the State by ACS. Household Income(1) The County The State Income Number Percent Number Percent Under $10, , % 341, % $10,000 to $14, , % 218, % $15,000 to $24, , % 479, % $25,000 to $34, , % 455, % $35,000 to $49, , % 614, % $50,000 to $74, , % 852, % $75,000 to $99, , % 612, % $100,000 to $149, , % 671, % $150,000 to $199, , % 265, % $200,000 or more... 12, % 267, % Total , % 4,778, % Note: (1) Source: American Community Survey 5-Year estimates from the U.S. Bureau of the Census. 13

17 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B PLAN OF FINANCING The proceeds of the Series 2016A Bonds will be used: (i) to advance refund the District s outstanding General Obligation Limited Tax (Capital Appreciation) Bonds, Series 2006, as listed below (the Refunded Series 2006 Bonds ), and (ii) to pay the costs of issuance of the Series 2016A Bonds. The Refunded Series 2006 Bonds Outstanding Amount Redemption Redemption Maturities Amount(1) Refunded(1) Price Date 12/15/ $ 792, $ 792, % 12/15/ /15/ ,720, ,720, % 12/15/ /15/ ,593, ,593, % 12/15/ /15/ , , % 12/15/2016 Total... $6,498, $6,498, Note: (1) Includes accreted interest to the redemption date of December 15, The proceeds of the Taxable Series 2016B Bonds will be used: (i) to advance refund a portion of the Series 2008 Bonds, as listed below (the Refunded Series 2008 Bonds, and together with the Refunded Series 2006 Bonds, the Refunded Bonds ), and (ii) to pay the costs of issuance of the Taxable Series 2016B Bonds. The Refunded Series 2008 Bonds Outstanding Amount Redemption Redemption Maturities Amount Refunded Price Date 12/15/ $ 360,000 $ 0 N/A N/A 12/15/ , , % 12/15/ /15/ , , % 12/15/ /15/ , , % 12/15/ /15/ , , % 12/15/ /15/ , , % 12/15/ /15/ , , % 12/15/ /15/ , , % 12/15/ /15/ , , % 12/15/ /15/ , , % 12/15/ /15/ , , % 12/15/ /15/ , , % 12/15/2016 Total... $5,870,000 $5,510,000 Bond proceeds will be used to purchase direct full faith and credit obligations of the United States of America (the Government Securities ), the principal of which together with interest to be earned thereon and an initial cash deposit will be sufficient to pay the compound accreted value of the Refunded Series 2006 Bonds, as stated above, on their redemption date and the principal of and interest on the Refunded Series 2008 Bonds, as stated above, when due and on their redemption date. The remaining Bond proceeds will be used to pay the costs of issuing the Bonds. 14

18 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B The Government Securities will be held in an escrow account created pursuant to an escrow agreement (the Escrow Agreement ), between the District and The Bank of New York Mellon Trust Company, National Association, Chicago, Illinois, as escrow agent (the Escrow Agent ). The mathematical calculations: (a) showing the adequacy of the principal of and interest on the Government Securities to provide for the payment of the compound accreted value of the Refunded Series 2006 Bonds and the principal of and interest on the Refunded Series 2008 Bonds, and (b) supporting the opinion of Bond Counsel that the interest on the Series 2016A Bonds is excludable from gross income of the owners thereof for federal income tax purposes will be verified by Dunbar, Breitweiser & Company, LLP, Bloomington, Illinois (the Verifier ), at the time of delivery of the Bonds. All moneys and Government Securities deposited for the payment of Refunded Bonds, including interest thereon, are required to be applied solely and irrevocably to the payment of the compound accreted value of the Refunded Series 2006 Bonds on their redemption date and the principal of and interest on the Refunded Series 2008 Bonds when due and on their redemption date, as stated above. DEBT INFORMATION After issuance of the Bonds and the refunding of the Refunded Bonds, the District will have outstanding $150,780,000 principal amount of general obligation debt. The District does not intend to issue additional new money general obligation debt in the foreseeable future. The District has a statutory debt limitation equal to 2.3% of its equalized assessed valuation. Based upon a 2014 EAV of $11,518,128,233, such limitation is equal to $264,916,949. The District has $144,560,000 applicable to such limitation, resulting in an unused legal debt capacity of $120,356,949. General Obligation Bonded Debt(1) (Principal Only) Outstanding Total General Less: General Cumulative Calendar Obligation The Refunded The Obligation Principal Retired Year Debt(2) Bonds Bonds Debt Amount Percent $ 22,815,000 $ 0 $ 120,000 $ 22,935,000 $ 22,935, % ,545,000 (380,000) 465,000 17,630,000 40,565, % ,435,000 (400,000) 475,000 9,510,000 50,075, % ,260,279 (935,279) 485,000 9,810,000 59,885, % ,216,308 (2,201,308) 2,395,000 9,410,000 69,295, % ,801,194 (2,136,194) 2,505,000 10,170,000 79,465, % ,791,867 (741,867) 940,000 10,990,000 90,455, % ,380,000 (520,000) 975,000 11,835, ,290, % ,280,000 (550,000) 1,015,000 12,745, ,035, % ,215,000 (580,000) 1,045,000 13,680, ,715, % ,320,000 (615,000) 575,000 11,280, ,995, % ,495,000 (650,000) 590,000 2,435, ,430, % ,935, ,935, ,365, % ,030, ,030, ,395, % ,135, ,135, ,530, % ,250, ,250, ,780, % Total... $148,904,648 $(9,709,648) $11,585,000 $150,780,000 Notes: (1) Source: the District. (2) Includes the District's General Obligation Bonds, Series 2007 and Series 2011A, General Obligation Refunding Bonds, Series 2012 and 2015B; General Obligation Limited Tax Refunding Bonds, Series 2011B and 2015A; General Obligation Limited Tax (Capital Appreciation) Bonds, Series 2006; and Taxable General Obligation Bonds (Alternate Revenue Source), Series

19 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B Detailed Overlapping and Underlying Bonded Debt(1) (As of August 15, 2015) Applicable Debt Kane County... $ 47,605,000 Townships... 44,645,000 Schools (Including Community Colleges)... 1,182,132,957 Cities & Villages ,639,507 Park Districts... 95,045,398 Library Districts... 25,254,534 Special Service Areas & TIF Districts ,994,531 Miscellaneous Districts... 21,630,000 Total Overlapping and Underlying Debt... $2,030,946,927 Note: (1) Source: Kane County Clerk. Statement of Bonded Indebtedness(1) Ratio To Per Capita Amount Equalized Estimated (2010 Census Applicable Assessed Actual 515,269) District EAV of Taxable Property, $11,518,128, % 33.33% $22, Estimated Actual Value, $34,554,384, % % $67, Direct Bonded Debt(2)... $ 150,780, % 0.44% $ Less: Self-Supporting Bonded Debt... (6,220,000) (0.05%) (0.02%) (12.07) Total Net Direct Bonded Debt(2)... $ 144,560, % 0.42% $ Total Overlapping Bonded Debt... $ 2,030,946, % 5.88% $ 3, Total Net Direct and Overlapping Bonded Debt(2)... $ 2,175,506, % 6.30% $ 4, Notes: (1) As of the date of issuance of the Bonds for Direct Bonded Debt and as of August 15, 2015 for Overlapping Bonded Debt. (2) Includes the Bonds and excludes the Refunded Bonds. PROPERTY ASSESSMENT AND TAX INFORMATION For the 2014 levy year, the District s EAV was comprised of approximately 75% residential, 8% industrial, 14% commercial, and 2% farm and railroad property valuations. Equalized Assessed Valuation(1) Levy Years Property Class Residential... $11,407,393,711 $10,459,729,792 $ 9,464,249,918 $ 8,793,098,779 $ 8,664,023,693 Farm ,182, ,228, ,669, ,820, ,050,429 Commercial... 1,915,477,530 1,815,726,872 1,762,262,090 1,668,596,480 1,635,006,235 Industrial ,446, ,240, ,225, ,303, ,961,763 Railroad... 12,429,644 13,808,973 16,021,810 17,468,815 30,086,113 Total... $14,566,929,781 $13,511,734,354 $12,433,428,424 $11,657,287,880 $11,518,128,233 Percent Change + (-)... (5.87%)(2) (7.24%) (7.98%) (6.24%) (1.19%) Notes: (1) Source: the County. (2) Percentage change based on 2009 EAV of $15,475,356,

20 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B Representative Tax Rates(1) (Per $100 EAV) Levy Years District Rates: Corporate... $ $ $ $ $ I.M.R.F Construction and Development Liability Insurance Social Security Bonds and Interest Total District Rate(2)... $ $ $ $ $ Kane County Fox River Water Reclamation District Elgin Township City of Elgin Gail Borden Library District Elgin Unit School District Number Elgin Community College District Number Total Rate(3)... $ $ $ $ $ Notes: (1) Source: Kane County Clerk. (2) Statutory tax rate limits for the District are as follows: Corporate ($0.0600) and Construction and Development ($0.0250). (3) Representative tax rates for other governmental units are from Elgin Township tax code 05, which represents approximately 7% of the 2014 EAV of the District. Tax Extensions and Collections(1) (Excludes Road and Bridge Levy) Levy Coll. Taxes Total Collections(2) Year Year Extended Amount Percent $30,103,627 $29,967, % ,062,395 31,961, % ,255,222 35,143, % ,498,122 33,471, % ,422,768 35,291, % ,853,222 35,811, % Notes: (1) Source: Kane County Treasurer. (2) Total collections include back taxes, taxpayer refunds, interest, etc. Principal County Taxpayers(1) Taxpayer Name Business/Service 2014 EAV(2) Simon/Chelsea Chicago Development LLC... Shopping Center... $ 47,144,869 Liberty Illinois LP... Real Estate... 36,321,977 LPF Geneva Commons, LP... Shopping Center... 34,392,190 Toyota Motor Sales USA Inc.... Real Estate... 27,476,461 In Retail Fund Algonquin Commons LLC... Real Estate... 18,275,955 Spring Hill Mall, LLC... Shopping Center... 17,976,795 John B. Sanfilippo & Son Inc.... Nut Processor... 15,833,054 Q Center LLC... Real Estate... 15,772,649 Amli at St. Charles LLC... Apartments... 12,765,390 Aldi Inc.... Retail... 12,656,305 Total... $238,615,645 Ten Largest Taxpayers as percent of 2014 EAV ($11,518,128,233) % Notes: (1) Source: Kane County Assessor. (2) Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers listed contain multiple parcels and it is possible that some parcels and their valuations have been overlooked. The 2014 EAV is the most current available for this purpose. 17

21 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES 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 Illinois Department of Revenue (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, 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 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 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 $35,000 for years prior to 1999, $40,000 for assessment years 1999 through 2003, $45,000 for assessment years 2004 and 2005, $50,000 from assessment years 2006 and 2007 and for assessments year 2008 and after, the maximum income limitation is $55,000. In general, the Senior Citizens Assessment Freeze Homestead 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 a population of less than 3,000,000, the Senior Citizens Assessment Freeze Homestead Exemption is as follows: through assessment year 2005 and for assessment year 2007 and later, the exempt amount is the difference between (i) the current EAV of their residence and (ii) 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). For assessment year 2006, the amount of the Senior Citizens Assessment Freeze Homestead Exemption phases out as the amount of household income increases. The amount of the Senior Citizens Assessment Freeze Homestead Exemption is calculated by using the same formula as above, and then multiplying the resulting value by a ratio that varies according to household income. 18

22 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B 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 $100,000 of the assessed valuation of property owned and used exclusively by such veterans or their spouses for residential purposes. 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. However, individuals claiming exemption under the Disabled Persons Homestead Exemption or the Disabled Veterans Standard Homestead Exemption cannot claim the aforementioned exemption. Furthermore, beginning with assessment year 2007, the Disabled Persons Homestead Exemption provides an annual homestead exemption in the amount of $2,000 for property that is owned and occupied by certain persons with a disability. However, individuals claiming exemption as a disabled veteran or claiming exemption under the Disabled Veterans Standard Homestead Exemption cannot claim the aforementioned exemption. In addition, the Disabled Veterans Standard Homestead Exemption provides disabled veterans an annual homestead exemption starting with assessment year 2015 and thereafter. Specifically, (i) those veterans with a serviceconnected disability of 30% or more but less than 50% are granted an exemption of $2,500, (ii) those veterans with a service-connected disability of 50% or more but less than 70% are granted an exemption of $5,000 and (iii) if the veteran has a service-connected disability of 70% or more then the property is exempt from taxation under the code. 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 Disabled Veterans Standard Homestead Exemption. Beginning with assessment year 2007, the 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 the Returning Veterans Homestead 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, or a leasehold interest of land on which a single family residence is located, which is occupied as a principle residence of a veteran returning from an armed conflict involving the armed forces of the United States who has an ownership interest therein, legal, equitable or as a lessee, and on which the veteran is liable for the payment of property taxes. Those individuals eligible for the Returning Veterans Homestead Exemption may claim the Returning Veterans Homestead Exemption, in addition to other homestead exemptions, unless otherwise noted. 19

23 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B 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 District. 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 or are for certain refunding purposes (such as the Bonds). The District has the authority to levy taxes for many different purposes. See the table entitled Representative Tax Rates under PROPERTY ASSESSMENT AND TAX INFORMATION herein. The ceiling at any particular time on the rate at which these taxes may be extended for the District is either (i) unlimited (as provided by statute), (ii) initially set by statute but permitted to be increased by referendum, (iii) capped by statute, or (iv) limited to the rate approved by referendum. Public Act , effective June 30, 2006, provides that the only ceiling on a particular tax rate is the ceiling set by statute above, at which the rate is not permitted to be further increased by referendum or otherwise. Therefore, taxing districts (such as the District) will have increased flexibility to levy taxes for the purposes for which they most need the money. The total aggregate tax rate for the various purposes subject to the Limitation Law, however, will not be allowed to exceed the District s limiting rate computed in accordance with the provisions of the Limitation Law. Local governments, including the District, can issue limited tax bonds in lieu of general obligation bonds that have otherwise been authorized by applicable law. Truth in Taxation Law Legislation known as the Truth in Taxation Law (the Law ) limits the aggregate amount of certain taxes which can be levied by, and extended for, a taxing district to 105% of the amount of taxes extended in the preceding year unless specified notice, hearing and certification requirements are met by the taxing body. The express purpose of the Law is to require published disclosure of, and hearing upon, an intention to adopt a levy in excess of the specified levels. Budgeting FINANCIAL INFORMATION The District s budget is prepared on the modified accrual basis of accounting. The District follows these procedures in establishing the budgetary data reflected in the financial statements: (1) The Director submits to the Board a proposed budget for the upcoming year. (2) Budget hearings are conducted. (3) The budget is legally enacted through the passage of an appropriations ordinance. The appropriations ordinance establishes the District s legal spending limit, and appropriations lapse at year end. The ordinance was not modified during the year. Encumbrance accounting is not in use. 20

24 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B Investment Policy Statutes authorize the District to invest funds in obligations of the United States Treasury or its agencies or instrumentalities, obligations of any bank or savings and loan association insured by the Federal Deposit Insurance Corporation, and obligations of any credit union chartered by the State of Illinois or the United States whose principal office is located within the State of Illinois. In addition, the District is authorized to invest funds in a Public Treasurers Investment Pool. Financial Reports The District s financial statements are audited annually by certified public accountants. The District s financial statements are completed on a modified accrual basis of accounting consistent with generally accepted accounting principles applicable to governmental entities. See APPENDIX A for more detail. Summary Financial Information The following tables are summaries and do not purport to be the complete audits, copies of which are available upon request. See APPENDIX A for the District s 2015 fiscal year audit. The District has historically operated under a balanced budget. The District has passed a balanced budget for its 2016 fiscal year. No Consent or Updated Information Requested of the Auditor The tables contained in this FINANCIAL INFORMATION section (the Excerpted Financial Information ) are from the audited financial statements of the District, including the audited financial statements for the fiscal year ended June 30, 2015 (the 2015 Audit ). The 2015 Audit was prepared by Lauterbach &, Amen, LLP, Warrenville, Illinois (the Auditor ), approved by formal action of the Board of Commissioners and is attached to this Final Official Statement as APPENDIX A. The District has not requested the Auditor to update information contained in the Excerpted Financial Information or the 2015 Audit; nor has the District requested that the Auditor consent to the use of the Excerpted Financial Information or the 2015 Audit in this Final Official Statement. Other than as expressly set forth in this Final Official Statement, the financial information contained in the Excerpted Financial Information and 2015 Audit has not been updated since the date of the 2015 Audit. The inclusion of the Excerpted Financial Information and 2015 Audit in this Final Official Statement in and of itself is not intended to demonstrate the fiscal condition of the District since the date of the 2015 Audit. Questions or inquiries relating to financial information of the District since the date of the 2015 Audit should be directed to the District. 21

25 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B Statement of Net Positon Governmental Activities Audited as of June ASSETS: Cash and Cash Equivalents... $ 59,169,983 $ 46,600,277 $ 44,126,005 $ 42,786,710 $ 40,407,431 Receivables Property Taxes... 16,359,289 17,786,152 16,922,708 17,634,737 17,876,659 Intergovernmental... 2,455, , , ,800 0 Service Concessions ,207, , ,476 Accounts ,327,102 Other , , , ,239 0 Due From Other Governments ,107,944 Prepaid Expenses... 6,500 6,500 6,500 6,500 6,500 Unamortized Bond Issuance Costs , , Capital Assets Not Being Depreciated ,565, ,139, ,128, ,863, ,716,155 Capital Assets Being Depreciated (Net of Accumulated Depreciation)... 28,877,257 28,477,006 23,933,916 27,723,961 26,795,526 Total Assets... $465,346,707 $466,580,052 $465,049,319 $468,876,676 $470,840,793 DEFERRED OUTFLOWS OF RESOURCES: Change of Assumptions... $ 0 $ 0 $ 0 $ 0 $ 329,652 Difference Between Projected and Actual Earnings ,434 Pension Contributions Made Subsequent to the Measurement Date ,075 Difference Between Expected and Actual Experience ,662 Total Deferred Inflows of Resources... $ 0 $ 0 $ 0 $ 0 $ 660,823 Total Assets and Deferred Outflows of Resources... $465,346,707 $466,580,052 $465,049,319 $468,876,676 $471,501,616 LIABILITIES: Accounts Payable... $ 787,351 $ 1,140,947 $ 837,225 $ 1,086,543 $ 131,314 Accrued Payroll , , , , ,732 Accrued Interest , , , , ,286 Deferred Revenue... 32,159,102 35,440, , Escrow Funds Payable ,000 1,473 1, Other Payables ,609 Other Liabilities ,718 0 Current Portion of Long-Term Liabilities ,964,060 Noncurrent Liabilities: Compensated Absences ,617 Net Pension Liability ,377 Net Other Post-Employment Benefits Obligation Payable ,762 Due Within One Year... 16,064,624 18,068,403 18,162,424 21,183,589 0 Due In More Than One Year ,621, ,626, ,965, ,154, ,968,451 Total Liabilities... $287,373,104 $274,873,479 $217,415,539 $198,278,745 $176,913,208 DEFERRED INFLOWS OF RESOURCES: Unavailable Property Taxes... $ 0 $ 0 $ 33,696,456 $ 35,422,768 $ 36,009,124 Unavailable Service Concessions Revenues ,207, , ,476 Unamortized Gain on Refunding ,600,457 2,880,366 2,160,274 Total Deferred Inflows of Resources... $ 0 $ 0 $ 38,504,865 $ 39,209,098 $ 38,772,874 Total Liabilities and Deferred Inflows of Resources... $287,373,104 $274,873,479 $255,920,404 $237,487,843 $215,686,082 NET POSITION: Invested in Capital Assets - Net of Related Debt... $159,341,526 $173,717,878 $193,658,072 $207,920,495 $238,279,636 Restricted For: Construction and Development... 2,998,435 4,754, Capital Projects ,000,000 Fox River Trust... 1,182, , ,915 2,520, ,806 Debt Service... 1,427, ,096 1,053,237 3,265,936 3,891,081 IMRF... 29,898 48,909 53,964 70, ,290 Liability Insurance , , , , ,107 Social Security... 51, , , , ,959 Unrestricted... 12,454,602 10,700,112 12,645,143 16,747,031 10,424,655 Total Net Position... $177,973,603 $191,706,573 $209,128,915 $231,388,833 $255,815,534 22

26 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B Statement of Activities Governmental Activities Audited Fiscal Year Ending June Governmental Activities: General Government... $ (6,268,342) $ (6,318,803) $ (4,820,188) $ (5,714,454) $ (6,053,530) Land Acquisition and Development... (693,085) (2,041,452) (867,037) 79,070 (1,029,470) Interest and Fiscal Charges... (10,010,257) (10,361,418) (10,838,579) (6,429,436) (5,700,119) Total Governmental Activities... $(16,971,684) $(18,721,673) $(16,525,804) $(12,064,820) $(12,783,119) General Revenues: Taxes: Property... $ 30,864,637 $ 31,960,723 $ 35,119,989 $ 33,472,270 $ 35,273,065 Replacement Taxes , , , , ,382 Investment Income ,132 49, , , ,305 Miscellaneous , ,682 92, ,101 1,486,441 Transfers In (Out) ,176, Total General Revenues... $ 31,439,425 $ 32,454,643 $ 37,803,119 $ 34,324,741 $ 37,180,193 CHANGE IN NET POSITION... $ 14,467,741 $ 13,732,970 $ 21,277,315 $ 22,259,921 $ 24,397,074 NET POSITION - JULY 1... $163,505,862(1) $177,973,603 $187,851,600 $209,128,912 $231,418,460 NET POSITION - JUNE $177,973,603 $191,706,573 $209,128,915 $231,388,833 $255,815,534 Note: (1) As restated. General Fund Balance Sheet Audited as of June ASSETS: Cash and Investments... $7,022,287 $ 7,698,954 $ 9,256,768 $10,617,170 $10,135,982 Receivables: Taxes... 2,542,147 2,547,961 2,632,865 2,674,680 2,667,232 Accounts ,974 Other Governmental Units , , , ,239 0 Prepaid Items... 6,500 6,500 6,500 6,500 6,500 Total Assets... $9,698,326 $10,378,645 $12,086,233 $13,416,589 $13,297,688 LIABILITIES: Accounts Payable... $ 212,582 $ 120,397 $ 265,561 $ 935,518 $ 100,614 Accrued Payroll , , , , ,732 Other Payables ,235 Deferred Revenue... 5,079,034 5,235, , ,718 0 Total Liabilities... $5,508,958 $ 5,596,193 $ 1,365,115 $ 1,461,757 $ 660,581 DEFERRED INFLOWS OF RESOURCES: Unavailable Property Taxes... $ 0 $ 0 $ 5,242,555 $ 5,372,611 $ 5,372,631 Total Deferred Inflows of Resources... $ 0 $ 0 $ 5,242,555 $ 5,372,611 $ 5,372,631 FUND BALANCES: Nonspendable For Prepaid Items... $ 6,500 $ 6,500 $ 6,500 $ 6,500 $ 6,500 Unassigned Fund Balance... 4,182,868 4,775,952 5,472,063 6,575,721 7,257,976 Total Fund Balances... $4,189,368 $ 4,782,452 $ 5,478,563 $ 6,582,221 $ 7,264,476 Total Liabilities, Deferred Inflows of Resources, and Fund Balances... $9,698,326 $10,378,645 $12,086,233 $13,416,589 $13,297,688 23

27 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B General Fund Revenues and Expenditures Audited Fiscal Year Ending June REVENUES: Property Taxes... $4,874,033 $5,021,615 $5,088,544 $5,390,724 $5,646,087 Intergovernmental... 5, , Investment Income... 9,886 7,145 16,848 29,559 30,910 Charges for Services... 1,253,552 1,457,352 1,811,660 1,937,671 2,146,354 Licenses and Permits... 20,868 19,727 15,243 19,146 14,360 Fines and Forfeitures ,579 11,741 Miscellaneous... 90, , , , ,381 Total Revenues... $6,254,235 $6,638,138 $7,061,499 $7,604,924 $7,979,299 EXPENDITURES: Personal Services... $3,593,115 $3,743,203 $3,768,688 $3,943,362 $4,095,111 Contractual Services... 1,194,173 1,208,287 1,206,348 1,297,369 1,545,669 Commodities , , ,735 1,047,772 1,049,066 Capital Outlay , , , , ,137 Other... 74,269 73,929 84,276 70, ,061 Total Expenditures... $5,803,987 $6,045,802 $6,367,693 $6,561,527 $7,197,044 Excess (Deficiency) of Revenues Over (Under) Expenditures... $ 450,248 $ 592,336 $ 693,806 $1,043,397 $ 782,255 OTHER FINANCING SOURCES (USES): Operating Transfers In... $ 0 $ 0 $ 0 $ 0 $ 0 Operating Transfers Out (100,000) Proceeds From Sale of Capital Assets... 21, ,305 60,263 0 Total Other Financing Sources (Uses)... $ 21,197 $ 748 $ 2,305 $ 60,263 $ (100,000) Excess (Deficiency) of Revenues and Other Financing Sources Over (Under) Expenditures and Other Uses... $ 471,445 $ 593,084 $ 696,111 $1,103,660 $ 682,255 Beginning Fund Balance... $3,717,923(1) $4,189,368 $4,782,452 $5,478,561 $6,582,221 Ending Fund Balance... $4,189,368 $4,782,452 $5,478,563 $6,582,221 $7,264,476 Note: (1) As restated. EMPLOYEE RETIREMENT AND OTHER POSTEMPLOYMENT BENEFITS OBLIGATIONS See APPENDIX D herein for a discussion of the District s employee retirement and other postemployment benefits obligations. REGISTRATION, TRANSFER AND EXCHANGE See also APPENDIX B for information on registration, transfer and exchange of book-entry bonds. The Bonds will be initially issued as book-entry bonds. The District shall cause books for the registration and for the transfer of the Bonds to be kept at the principal corporate trust office of the Bond Registrar in Chicago, Illinois. The District will authorize to be prepared, and the Bond Registrar shall keep custody of, multiple bond blanks executed by the District for use in the transfer and exchange of Bonds. 24

28 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B Any Bond may be transferred or exchanged, but only in the manner, subject to the limitations, and upon payment of the charges as set forth in the respective Bond Ordinance. Upon surrender for transfer or exchange of any Bond at the principal corporate trust office of the Bond Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Bond Registrar and duly executed by the registered owner or such owner s attorney duly authorized in writing, the District shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the registered owner, transferee or transferees (as the case may be) a new fully registered Bond or Bonds of the same series and maturity of authorized denominations, for a like aggregate principal amount. The execution by the District of any fully registered Bond shall constitute full and due authorization of such Bond, and the Bond Registrar shall thereby be authorized to authenticate, date and deliver such Bond, provided, however, the principal amount of outstanding Bonds of each series and maturity authenticated by the Bond Registrar shall not exceed the authorized principal amount of Bonds for such series and maturity less Bonds previously paid. The Bond Registrar shall not be required to transfer or exchange any Bond during the period beginning at the close of business on the 1 st day of the month of any interest payment date on such Bond and ending at the opening of business on such interest payment date, nor to transfer or exchange any Bond after notice calling such Bond for redemption has been mailed, nor during a period of fifteen (15) days next preceding mailing of a notice of redemption of any Bonds. The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of the principal of or interest on any Bonds shall be made only to or upon the order of the registered owner thereof or such owner s legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. No service charge shall be made for any transfer or exchange of Bonds, but the District or the Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds except in the case of the issuance of a Bond or Bonds for the unredeemed portion of a Bond surrendered for redemption. TAX EXEMPTION SERIES 2016A BONDS Federal tax law contains a number of requirements and restrictions which apply to the Series 2016A Bonds, including investment restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the proper use of bond proceeds and the facilities financed therewith, and certain other matters. The District has covenanted to comply with all requirements that must be satisfied in order for the interest on the Series 2016A 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 Series 2016A Bonds to become includable in gross income for federal income tax purposes retroactively to the date of issuance of the Series 2016A Bonds. Subject to the District s compliance with the above-referenced covenants, under present law, in the opinion of Bond Counsel, interest on the Series 2016A 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 Series 2016A Bonds is taken into account, however, in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. In rendering its opinion, Bond Counsel will rely upon certifications of the District with respect to certain material facts within the District s knowledge and upon the mathematical computation of the yield on the Series 2016A Bonds and the yield on certain investments by Dunbar, Breitweiser & Company, LLP, Bloomington, Illinois. 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. 25

29 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B 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 Series 2016A Bonds. Ownership of the Series 2016A 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 Series 2016A Bonds should consult their tax advisors as to applicability of any such collateral consequences. The issue price (the Issue Price ) for each maturity of the Series 2016A Bonds is the price at which a substantial amount of such maturity of the Series 2016A Bonds is first sold to the public. The Issue Price of a maturity of the Series 2016A Bonds may be different from the price set forth, or the price corresponding to the yield set forth, on page 2 of the Bond Issue Summary herein. If the Issue Price of a maturity of the Series 2016A Bonds is less than the principal amount payable at maturity, the difference between the Issue Price of each such maturity, if any, of the Series 2016A Bonds (the Series 2016A OID Bonds ) and the principal amount payable at maturity is original issue discount. For an investor who purchases a Series 2016A OID Bond in the initial public offering at the Issue Price for such maturity and who holds such Series 2016A OID Bond to its stated maturity, subject to the condition that the District complies with the covenants discussed above, (a) the full amount of original issue discount with respect to such Series 2016A 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 Series 2016A 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 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 Series 2016A 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 Series 2016A OID Bonds should consult their own tax advisors with respect to the state and local tax consequences of original issue discount on such Series 2016A OID Bonds. Owners of Series 2016A Bonds who dispose of Series 2016A Bonds prior to the stated maturity (whether by sale, redemption or otherwise), purchase Series 2016A Bonds in the initial public offering, but at a price different from the Issue Price or purchase Series 2016A Bonds subsequent to the initial public offering should consult their own tax advisors. If a Series 2016A Bond is purchased at any time for a price that is less than the Series 2016A Bond s stated redemption price at maturity or, in the case of a Series 2016A OID Bond, its Issue Price plus accreted original issue discount (the Revised Issue Price ), the purchaser will be treated as having purchased a Series 2016A 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 Series 2016A 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 a Series 2016A 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 Series 2016A Bond. Purchasers should consult their own tax advisors regarding the potential implications of market discount with respect to the Series 2016A Bonds. 26

30 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B An investor may purchase a Series 2016A 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 Series 2016A 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 Series 2016A Bond. Investors who purchase a Series 2016A Bond at a premium should consult their own tax advisors regarding the amortization of bond premium and its effect on the Series 2016A Bond s basis for purposes of computing gain or loss in connection with the sale, exchange, redemption or early retirement of the Series 2016A Bond. There are or may be pending in the Congress of the United States legislative proposals, including some that carry retroactive effective dates, that, if enacted, could alter or amend the federal tax matters referred to above or affect the market value of the Series 2016A 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 Series 2016A Bonds should consult their own tax advisors regarding any pending or proposed federal tax legislation. Bond Counsel expresses no opinion regarding any pending or proposed federal tax legislation. The Internal Revenue Service (the Service ) has an ongoing program of auditing tax-exempt obligations to determine whether, in the view of the Service, interest on such tax-exempt obligations is includable in the gross income of the owners thereof for federal income tax purposes. It cannot be predicted whether or not the Service will commence an audit of the Series 2016A Bonds. If an audit is commenced, under current procedures the Service may treat the District as a taxpayer and the Series 2016A 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 Series 2016A Bonds until the audit is concluded, regardless of the ultimate outcome. Payments of interest on, and proceeds of the sale, redemption or maturity of, tax-exempt obligations, including the Series 2016A Bonds, are in certain cases required to be reported to the Service. Additionally, backup withholding may apply to any such payments to any Series 2016A Bond owner who fails to provide an accurate Form W-9 Request for Taxpayer Identification Number and Certification, or a substantially identical form, or to any Series 2016A 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 Series 2016A Bonds is not exempt from present State of Illinois income taxes. Ownership of the Series 2016A 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 Series 2016A Bonds. Prospective purchasers of the Series 2016A Bonds should consult their tax advisors regarding the applicability of any such state and local taxes. See APPENDIX C for the proposed form of Bond Counsel opinion for the Series 2016A Bonds. TAX TREATMENT - TAXABLE SERIES 2016B BONDS Interest on the Taxable Series 2016B Bonds is includible in gross income of the owners thereof for federal income tax purposes. Ownership of the Taxable Series 2016B Bonds may result in other federal income tax consequences to certain taxpayers. Taxable Series 2016B Bondholders should consult their tax advisors with respect to the inclusion of interest on the Taxable Series 2016B Bonds in gross income for federal income tax purposes and any collateral tax consequences. Interest on the Taxable Series 2016B Bonds is not exempt from present State of Illinois income taxes. Ownership of the Taxable Series 2016B 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 Taxable Series 2016B Bonds. Prospective purchasers of the Taxable Series 2016B Bonds should consult their tax advisors regarding the applicability of any such state and local taxes. See APPENDIX C for the proposed form of Bond Counsel opinion for the Taxable Series 2016B Bonds. 27

31 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B CONTINUING DISCLOSURE The District 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 Section (b)(5) of Rule 15c2-12 (the Rule ) adopted by the Securities and Exchange Commission (the Commission ) under the Securities Exchange Act of No person, other than the District, 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 summary of other terms of the Undertaking, including termination, amendment and remedies, are set forth below under THE UNDERTAKING. While the District has timely filed its audited financial statements and annual disclosure information over the past five years in compliance, in all material respects, with its previous continuing disclosure agreements, the District filed late a material event notice in connection with an upgrade to its underlying S&P rating which occurred on June 8, A failure by the District 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. See THE UNDERTAKING - Consequences of Failure of the District to Provide Information. The District must report any failure to comply with the Undertaking in accordance with the Rule. Any broker, dealer or municipal securities dealer must consider such report before recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market price. Bond Counsel expresses no opinion as to whether the Undertaking complies with the requirements of Section (b)(5) of the Rule. THE UNDERTAKING The following is a brief summary of certain provisions of the Undertaking of the District and does not purport to be complete. The statements made under this caption are subject to the detailed provisions of the Undertaking, a copy of which is available upon request from the District. Annual Financial Information Disclosure The District 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 District is required to deliver such information within 210 days after the last day of the District s fiscal year (currently on June 30), beginning with the fiscal year ending June 30, If Audited Financial Statements are not available when the Annual Financial Information is filed, the District will file unaudited financial statements. The District will submit Audited Financial Statements to the MSRB s Electronic Municipal Market Access ( EMMA ) system within 30 days after availability to the District. MSRB Rule G-32 requires all EMMA filings to be in word-searchable PDF format. This requirement extends to all documents to be filed with EMMA, including financial statements and other externally prepared reports. Annual Financial Information means information of the type contained in the following headings, subheadings and exhibits of the Final Official Statement: All of the tables under the heading PROPERTY ASSESSMENT AND TAX INFORMATION within this Final Official Statement; All of the tables under the heading DEBT INFORMATION within this Final Official Statement; and All of the tables under the heading FINANCIAL INFORMATION within this Final Official Statement. 28

32 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B Audited Financial Statements means financial statements of the District as audited annually by independent certified public accountants. Audited Financial Statements are expected to continue to be prepared according to Generally Accepted Accounting Principles as applicable to governmental units (i.e., as subject to the pronouncements of the Governmental Accounting Standards Board and subject to any express requirements of State law). Reportable Events Disclosure The District covenants that it will disseminate in a timely manner (not in excess of ten business days after the occurrence of the Reportable Event) Reportable Events Disclosure to the MSRB in such manner and format and accompanied by identifying information as is prescribed by the MSRB or the Commission at the time of delivery of such information. MSRB Rule G-32 requires all EMMA filings to be in word-searchable PDF format. This requirement extends to all documents to be filed with EMMA, including financial statements and other externally prepared reports. The Reportable Events are: 1. Principal and interest payment delinquencies 2. Non-payment related defaults, if material 3. Unscheduled draws on debt service reserves reflecting financial difficulties 4. Unscheduled draws on credit enhancements reflecting financial difficulties 5. Substitution of credit or liquidity providers, or their failure to perform 6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security 7. Modifications to the rights of security holders, if material 8. Bond calls, if material, and tender offers 9. Defeasances 10. Release, substitution or sale of property securing repayment of the securities, if material 11. Rating changes 12. Bankruptcy, insolvency, receivership or similar event of the District* 13. The consummation of a merger, consolidation, or acquisition involving the District or the sale of all or substantially all of the assets of the District, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material 14. Appointment of a successor or additional trustee or the change of name of a trustee, if material. Consequences of Failure of the District to Provide Information The District 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 District to comply with any provision of the Undertaking, the beneficial owner of any Bond may seek mandamus or specific performance by court order, to cause the District to comply with its obligations under the Undertaking. A default under the Undertaking shall not be deemed a default under the Bond Ordinance, and the sole remedy under the Undertaking in the event of any failure of the District to comply with the Undertaking shall be an action to compel performance. * This event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the District in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the District, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the District. 29

33 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B Amendment; Waiver Notwithstanding any other provision of the Undertaking, the District by resolution or ordinance authorizing such amendment or waiver, may amend the Undertaking, and any provision of the Undertaking may be waived, if: (a) (i) The amendment or the waiver is made in connection with a change in circumstances that arises from a change in legal requirements, including, without limitation, pursuant to a no-action letter issued by the Commission, a change in law, or a change in the identity, nature, or status of the District, or type of business conducted; or (ii) The Undertaking, as amended, or the provision, as waived, would have complied with the requirements of the Rule at the time of the primary offering, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (b) The amendment or waiver does not materially impair the interests of the beneficial owners of the Bonds, as determined by parties unaffiliated with the District (such as Bond Counsel). In the event that the Commission or the MSRB or other regulatory authority approves or requires 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 District shall, if required, make such dissemination to such central post office, governmental agency or similar entity without the necessity of amending the Undertaking. Termination of Undertaking The Undertaking shall be terminated if the District shall no longer have any legal liability for any obligation on or relating to repayment of the Bonds under the respective Bond Ordinance. The District shall give notice to the MSRB in a timely manner if this paragraph is applicable. Additional Information Nothing in the Undertaking shall be deemed to prevent the District from disseminating any other information, using the means of dissemination set forth in the Undertaking or any other means of communication, or including any other information in any 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 District chooses to include any information from any document or notice of occurrence of a Reportable Event in addition to that which is specifically required by the Undertaking, the District shall have no obligation under the Undertaking to update such information or include it in any future disclosure or notice of occurrence of a Reportable Event. Dissemination of Information; Dissemination Agent When filings are required to be made with the MSRB in accordance with the Undertaking, such filings are required to be made through its EMMA system for municipal securities disclosure or through any other electronic format or system prescribed by the MSRB for purposes of the Rule. The District may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under the Undertaking, and may discharge any such Agent, with or without appointing a successor Dissemination Agent. 30

34 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B Series 2016A Bonds OPTIONAL REDEMPTION The Series 2016A Bonds are not subject to optional redemption prior to maturity. Taxable Series 2016B Bonds The Taxable Series 2016B Bonds due December 15, , inclusive, are non-callable. The Taxable Series 2016B Bonds due December 15, , are callable in whole or in part on any date on or after December 15, 2024, at a price of par plus accrued interest to the redemption date. If less than all the Taxable Series 2016B Bonds are called, they shall be redeemed in such principal amounts and from such maturities as determined by the District and within any maturity by lot. The Bond Registrar will give notice of redemption, identifying the Taxable Series 2016B Bonds (or portions thereof) to be redeemed, by mailing a copy of the redemption notice by first class mail not less than thirty (30) days nor more than sixty (60) days prior to the date fixed for redemption to the registered owner of each Taxable Series 2016B Bond (or portion thereof) to be redeemed at the address shown on the registration books maintained by the Bond Registrar. Unless moneys sufficient to pay the redemption price of the Taxable Series 2016B Bonds to be redeemed are received by the Bond Registrar prior to the giving of such notice of redemption, such notice may, at the option of the District, state that said redemption will be conditional upon the receipt of such moneys by the Bond Registrar on or prior to the date fixed for redemption. If such moneys are not received, such notice will be of no force and effect, the District will not redeem such Taxable Series 2016B Bonds, and the Bond Registrar will give notice, in the same manner in which the notice of redemption has been given, that such moneys were not so received and that such Taxable Series 2016B Bonds will not be redeemed. Otherwise, prior to any redemption date, the District will deposit with the Bond Registrar an amount of money sufficient to pay the redemption price of all the Taxable Series 2016B Bonds or portions of Taxable Series 2016B Bonds which are to be redeemed on the date. Subject to the provisions for a conditional redemption described above, notice of redemption having been given as described above and in the Taxable Series 2016B Bond Ordinance, the Taxable Series 2016B Bonds or portions of Taxable Series 2016B Bonds so to be redeemed will, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the District shall default in the payment of the redemption price) such Taxable Series 2016B Bonds or portions of Taxable Series 2016B Bonds shall cease to bear interest. Upon surrender of such Taxable Series 2016B Bonds for redemption in accordance with said notice, such Taxable Series 2016B Bonds will be paid by the Bond Registrar at the redemption price. LITIGATION There is no litigation of any nature now pending or threatened restraining or enjoining the issuance, sale, execution or delivery of the Bonds, or in any way contesting or affecting the validity of the Bonds or any proceedings of the District taken with respect to the issuance or sale thereof. FINAL OFFICIAL STATEMENT AUTHORIZATION This Final Official Statement has been authorized for distribution to prospective purchasers of the Bonds. All statements, information, and statistics herein are believed to be correct but are not guaranteed by the consultants or by the District, and all expressions of opinion, whether or not so stated, are intended only as such. 31

35 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B INVESTMENT RATINGS Each series of the Bonds has been rated AA+/Stable by Standard & Poor s Ratings Services, a Division of The McGraw-Hill Companies, New York, New York ( S&P ). The District has supplied certain information and material concerning the Bonds and the District to S&P as part of its application for investment ratings on the Bonds. A rating reflects only the views of the rating agency assigning such rating and an explanation of the significance of such rating may be obtained from such rating agency. Generally, such rating service bases its rating on such information and material, and also on such investigations, studies and assumptions that it may undertake independently. There is no assurance that such ratings will continue for any given period of time or that they may not be lowered or withdrawn entirely by such rating service if, in its judgment, circumstances so warrant. Any such downward change in or withdrawal of such ratings may have an adverse effect on the secondary market price of the Bonds. An explanation of the significance of the investment ratings may be obtained from the rating agency: Standard & Poor s Corporation, 55 Water Street, New York, New York 10041, telephone CERTAIN LEGAL MATTERS Certain legal matters incident to the authorization, issuance and sale of the Bonds are subject to the approving legal opinion of Chapman and Cutler LLP, Chicago, Illinois, as Bond Counsel (the Bond Counsel ), who has been retained by, and acts as, Bond Counsel to the District. Bond Counsel has not been retained or consulted on disclosure matters and has not undertaken to review or verify the accuracy, completeness or sufficiency of this Final Official Statement or other offering material relating to the Bonds and assumes no responsibility for the statements or information contained in or incorporated by reference in this Final Official Statement, except that in its capacity as Bond Counsel, Chapman and Cutler LLP has, at the request of the District, reviewed only those portions of this Final Official Statement involving the description of the Bonds, the security for the Bonds (excluding forecasts, projections, estimates or any other financial or economic information in connection therewith), the description of the federal tax treatment of the interest on the Bonds. This review was undertaken solely at the request and for the benefit of the District and did not include any obligation to establish or confirm factual matters set forth herein. Series 2016A Bonds UNDERWRITING The Series 2016A Bonds were offered for sale by the District at a public, competitive sale on March 3, The best bid submitted at the sale was submitted by Hutchinson, Shockey, Erley & Co., Chicago, Illinois (the Series 2016A Underwriter ). The District awarded the contract for sale of the Series 2016A Bonds to the Series 2016A Underwriter at a price of $6,763, (reflecting the par amount of $5,725,000, plus a reoffering premium of $1,080, and less an Underwriter s discount of $41,509.97). The Series 2016A Underwriter has represented to the District that the Series 2016A Bonds have been subsequently re-offered to the public initially at the yields or prices set forth on page 2 of this Final Official Statement. Taxable Series 2016B Bonds The Taxable Series 2016B Bonds were offered for sale by the District at a public, competitive sale on March 3, The best bid submitted at the sale was submitted by Fifth Third Securities, Inc., Cincinnati, Ohio (the Taxable Series 2016B Underwriter ). The District awarded the contract for sale of the Taxable Series 2016B Bonds to the Taxable Series 2016B Underwriter at a price of $5,854, (reflecting the par amount of $5,860,000, plus a reoffering premium of $51, and less an Underwriter s discount of $56,967.23). The Taxable Series 2016B Underwriter has represented to the District that the Taxable Series 2016B Bonds have been subsequently re-offered to the public initially at the yields or prices set forth on page 3 of this Final Official Statement. 32

36 Forest Preserve District of Kane County, Kane County, Illinois $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B MUNICIPAL ADVISOR The District has engaged Speer Financial, Inc. as municipal advisor (the Municipal Advisor ) in connection with the issuance and sale of the Bonds. The Municipal Advisor is a Registered Municipal Advisor in accordance with the rules of the MSRB. The Municipal Advisor will not participate in the underwriting of the Bonds. The financial information included in the Final 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. The Municipal Advisor is not obligated to undertake any independent verification of or to assume any responsibility for the accuracy, completeness or fairness of the information contained in this Final Official Statement, nor is the Municipal Advisor obligated by the District s continuing disclosure undertaking. CERTIFICATION We have examined this Final Official Statement dated March 3, 2016, for the $5,725,000 General Obligation Limited Tax Refunding Bonds, Series 2016A and the $5,860,000 Taxable General Obligation Refunding Bonds (Alternate Revenue Source), Series 2016B, believe it to be true and correct and will provide to the purchaser of the Bonds at the time of delivery a certificate confirming to the purchaser that to the best of our knowledge and belief information in the Official Statement was at the time of acceptance of the bid for the Bonds and, including any addenda thereto, was at the time of delivery of the Bonds true and correct in all material respects and does not include any untrue statement of a material fact, nor does it omit the statement of any material fact required to be stated therein, or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. /s/ MICHAEL KENYON /s/ KENNETH STANISH President, Board of Commissioners Director of Finance FOREST PRESERVE DISTRICT OF FOREST PRESERVE DISTRICT OF KANE COUNTY KANE COUNTY Kane County, Illinois Kane County, Illinois 33

37 APPENDIX A THE FOREST PRESERVE DISTRICT OF KANE COUNTY, KANE COUNTY, ILLINOIS FISCAL YEAR 2015 AUDITED FINANCIAL STATEMENTS

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