DEBT SERVICE FUND OVERVIEW AND DETAIL

DEBT SERVICE FUND OVERVIEW AND DETAIL Debt financing is used to fund major capital expenditures that are part of the Capital Improvement Plan. In 2004, the restoration of the District s bonding authority to $1.04 million annually provided the District the ability to use long-term debt instruments and operating surpluses to finance large capital projects and repay outstanding debt rather than relying on funds that are needed to meet operating needs. The District prepares detailed analyses of existing obligations, current and projected reserves, and future liability levels before making a decision to issue new debt. The District s current and proposed debt portfolio for 2009 is illustrated in the chart below: Outstanding Debt Bond Issue Reason for Issuance Funding Source Total Principal and Interest Outstanding 1998 Alternate G.O. Bond 2002 G.O. Debt Certificates Amount of 2009 Principal Payment Amount of 2009 Interest Payment 4,725,000/ 196,275 (WCC) 152,637(WCC) 1,728,754 63,725 (Golf Course) 49,558 (Golf Course) Amount of 2009 Total Debt Payment Enterprise Services An addition to Courts Plus and for 220,000/ revenues/backed by 40,000 10,340 50,340 general park purposes 32,195 taxes (2) Expansion of Sugar Creek Golf Course and purchase/ redevelopment of Wagner Community Center Annual rollover G.O Bond and Golf Course Revenues 462,195 Redevelopment of East End Pool 2006 G.O. and Wilder Mansion/Library, Limited Tax Bond installation of two synthetic turf athletic fields Tax Levy and transfer from Early Bond Repayment Fund (75,715 annually for artificial turf fields) 6,215,0000/ 2,536,505 Proposed Debt for 2009 260,000 255,678 515,678 2009 G.O. Annual Rollover Bond Debt payment for 2002 Debt Certificates and fund capital improvements 500,000/ Tax Levy 500,000 20,000 520,000[1] 20,000 (1) Estimate (interest portion will be determined when the bond sale is negotiated) (2) These taxes are abated. 2009 Budgeted Revenue to Pay 2009 Debt Payments The 2009 bond payments detailed in the last column above (titled Total Amount of 2009 Debt Payments ) are budgeted in the Debt Service Fund along with bank and finance charges of $1,600 and legal fees of $3,500. Revenues in the Debt Service Fund to cover these payments include: Taxes levied totaling $1,035,678 to pay the portion of the 2006 G.O. Limited Tax Bond for East End Pool and the 2009 G.O. Annual Rollover Bond; A transfer from Enterprise Services Fund to Recreation Fund to the Debt Service Fund for the 1998 Alternate G.O. Bonds of $50,340; A transfer from the Sugar Creek Golf Course Fund to the Debt Service Fund for the Sugar Creek portion of the 2002 G.O. Debt Certificates of $113,283; 2009 Elmhurst Park District Budget 187

$75,715 transfer from the Early Bond Repayment Fund to the Debt Service Fund for the additional debt service portion of the 2006 G.O. Limited Tax Bond that was used to fund synthetic turf fields; Annual rollover bond proceeds of $500,000 for the Wagner Community Center portion of the 2002 G.O. Debt Certificates of $348,912 (the remainder of the Annual rollover bond proceeds of $151,088 and $70,773 from tax revenue for a total of $221,861 is budgeted to be transferred to the Capital Improvement Fund for various capital projects); The Sugar Creek Fund includes a transfer of $125,863 to the Village of Villa Park to pay the golf course s portion of the debt issued by the Village to purchase and develop the driving range. Bond Rating In 2006, the District s operations were reviewed by representatives from Moody s Investor Service through an on-site visit of parks and facilities and an analysis of financial information prior to the issuance of the 2006 $7.5 million G.O Limited Tax Bonds. Moody s upgraded the District s bond rating from a Aa3 to Aa2 rating reinforcing the District s healthy financial position. Moody s report cites the District s well-managed finances and healthy reserves, strong management and program flexibility and Elmhurst s location and economy, as reasons for the rating upgrade. This rating enables debt financing for infrastructure or major capital to be acquired at a significant savings of interest. Debt Limit The legal debt limits for the District are 2.875% of equalized assessed valuation for total debt issued including referendum and non-referendum bonds and.575% of assessed valuation for non-referendum bonds only. Bonds are not included in the computation of statutory indebtedness unless the taxes levied to pay for such obligations are in fact extended. The District s long-term debt outlook is healthy as the District s current percent of legal debt limit is 18% of the total limit or $11,945,000 (total available limit of $53,104,169) and for non-referendum General Obligation debt, the percent of legal debt limit is 54% of the total limit or $6,965,000. Moody s Investor s Services Aa2 bond rating of the District also illustrates that the District is within a fiscally responsible level of debt. The chart below illustrates the legal debt margin calculations. Estimated Legal Debt Margin Calculations (as of September 30, 2008) Tax Year 2007 E.A.V. (collectable calendar year 2008) 2,262,579,808 Non-Referendum General Obligation Debt Limit (0.575% of EAV) 13,009,834 Statutory Debt Limit (2.875% of EAV) 65,049,169 Less: Bonded Debt Alternate Revenue Bonds, Series 1998 (due 12/30/08-13) (1) 255,000 - - GO Debt Certificates Series 2002 (due 11/1/08-22) 4,980,000-4,980,000 Annual Rollover 500,000 500,000 500,000 GO Limited Tax Bonds, Series 2006 (due 12/15/08-25) 6,465,000 6,465,000 6,465,000 Total Outstanding Debt: 12,200,000 6,965,000 11,945,000 Total Available Legal Debt Margins: 6,044,834 53,104,169 54% 18% (1) Pursuant to Illinois State Statutes, alternate revenue bonds will not be applied to either the overall 2.875% of EAV Statutory Debt Limit or the Non-Referendum 0.575% of EAV Debt Limit, provided that no debt service levy for the Bonds has been extended. 2009 Elmhurst Park District Budget 188

This chart illustrates the District s debt service requirements to maturity of all outstanding debt: DEBT SERVICE REQUIREMENTS TO MATURITY General 2006 GO 2002 G.O. 1998 Alternate Fiscal Year Obligation Limited Tax Long Term Debt General Totals Bonds-Annual Bonds Certificates Obligation Bonds 2009 520,000 515,678 462,195 50,340 1,548,213 2010 515,928 458,095 48,460 1,022,483 2011 515,803 463,688 51,580 1,031,071 2012 515,303 458,328 49,465 1,023,096 2013 514,428 462,498 52,350 1,029,276 2014 514,428 465,648 980,076 2015 518,678 457,733 976,411 2016 511,928 459,293 971,221 2017 513,128 464,720 977,848 2018 513,728 458,923 972,651 2019 513,728 462,315 976,043 2020 513,128 459,220 972,348 2021 512,333 460,420 972,753 2022 515,533 460,680 976,213 2023 517,933 517,933 2024 514,533 514,533 2025 515,295 515,295 Principal & Interest 520,000 8,751,505 6,453,754 252,195 17,003,723 Interest Portion 20,000 2,536,505 1,728,754 32,195 2009 Elmhurst Park District Budget 189

SUMMARY OF DEBT CERTIFICATES, GENERAL OBLIGATION AND ALTERNATE GENERAL OBLIGATION BONDS Beginning Balance Debt Issue Balance Payments 12/31/2009 2006 GO Limited Tax Bonds 6,215,000 260,000 5,955,000 Total Issuance: $7,500,000 Installments: $240,000 - $795,000 Interest: 3.75%-4.10% 2002 G.O. Long Term Debt Certificates Total Issuance: $6,155,000 Installments: $220,000 - $440,000 Interest: 2.75% - 4.70% 4,725,000 260,000 4,465,000 1998 Alternate G.O. Bonds 220,000 40,000 180,000 Total Issuance: $1,500,000 Installments: $35,000 - $180,000 Interest: 4.20% - 6.25% TOTALS 11,160,000 560,000 10,600,000 2009 Elmhurst Park District Budget 190

Revenue - Debt Service Fund For Budget Year 2009 Account Number 2007 2008 2009 Proposed Account Title Actuals Budget Budget 60.00. 3001. 00 DuPage County Real Estate Property Tax 1,037,260 1,033,803 1,035,678 60.00. 3900. 00 Operating Interfund Transfers 160,954 238,489 241,038 60.00. 3920. 00 Bond Proceeds 500,000 500,000 500,000 60.00. 3960. 00 Interest Income 33,091 3,000 3,000 Total Revenues 1,731,305 1,775,292 1,779,716 2009 Elmhurst Park District Budget 191

Elmhurst Park District Transfers and Debt Service For Budget Year 2009 Account Number 2007 2008 2009 Proposed 2009 Proposed Account Title Actuals Budget Budget Appropriation 60.12. 5101. 00 Legal Fees 3,000 5,000 3,500 4,200 60.12. 5180. 00 Finance/Bank Charges 1,515 3,000 1,600 1,920 Total Contractual Services 4,515 8,000 5,100 6,120 10.00. 9910. 00 Operating Interfund Transfers 65,186 442,830 60,250 72,300 20.00. 9910. 00 Operating Interfund Transfers 131,033 545,442 117,140 140,568 41.00. 9910. 00 Operating Interfund Transfers 399,089 1,616,504 309,700 371,640 42.00. 9910. 00 Operating Interfund Transfers 1,430,937 255,715 75,715 90,858 60.00. 9910. 00 Operating Interfund Transfers 152,435 147,644 221,861 266,233 80.00. 9910. 00 Operating Interfund Transfers 53,501 114,089 113,283 135,940 60.00. 9920. 00 2002 LT Debt Certificates (P&I) 458,282 465,483 462,195 554,634 41.00. 9921. 00 Interest Expense 936 500 1,961 2,353 60.00. 9921. 00 2006 GO Limited Tax Bonds 514,053 515,053 515,678 618,814 80.00. 9921. 00 Debt Service 67,661 128,068 125,863 151,036 60.00. 9922. 00 Annual G.O. Bonds (P&I) 512,510 518,750 520,000 624,000 60.00. 9923. 00 1998 Alternate G.O. Bond (P&I) 48,630 46,985 50,340 60,408 41.00. 9930. 00 Income from Joint Venture 70,069 0 0 0 Total Transfers & Debt Service 3,904,322 4,797,062 2,573,986 3,088,783 Total Expenses 3,908,837 4,805,062 2,579,086 3,094,903 2009 Elmhurst Park District Budget 192