PRELIMINARY OFFICIAL STATEMENT DATED APRIL 13, 2010

SALE DATE AND TIME: April 19, 2010 10:00 A.M. CDT

NEW ISSUE - BOOK-ENTRY ONLY RATING+: MOODY’S “Aaa” - BANK QUALIFIED te an offer to sell or the or sell te an offer to Subject to compliance by the District with certain covenants, in the opinion of Bond Counsel, under present law, interest on the Bonds (i) is excludable from gross income of the owners thereof for federal income tax purposes, (ii) is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations and (iii) is not taken into account in computing adjusted current earnings, which is used as an adjustment in determining the federal alternative minimum tax for certain corporations. See “TAX EXEMPTION” herein for a more complete discussion. under the securities laws of any such The Bonds are “qualified tax-exempt obligations” under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. See “QUALIFIED TAX-EXEMPT OBLIGATIONS” herein. Interest on the Bonds is not exempt from present State of Illinois income taxes.

$8,430,000* TOWNSHIP HIGH SCHOOL DISTRICT NUMBER 203 ary Official Statement constitu (NEW TRIER) COOK COUNTY, ILLINOIS GENERAL OBLIGATION LIMITED TAX SCHOOL BONDS, SERIES 2010

l prior to registration or qualification Dated: As of Date of Issuance Due: December 1, As Shown on the Inside Cover Page

The General Obligation Limited Tax School Bonds, Series 2010 (the “Bonds”), of Township High School District Number 203, Cook County, Illinois (the “District”), are issuable as fully registered Bonds under the global book-entry cumstances shall this Prelimin system operated by The Depository Trust Company, New York, New York (“DTC”). Individual purchases will be made in book-entry system form only. Beneficial owners of the Bonds will not receive physical delivery of Bonds. The Bonds are issued in fully registered form in denominations of $5,000 and integral multiples thereof, and will bear interest payable on June 1 and December 1 of each year, with December 1, 2010 as the first interest payment date. The Bank of New York n or sale would be unlawfu Mellon Trust Company, National Association, Chicago, Illinois, will act as bond registrar and paying agent for the Bonds. Details of payment of the Bonds are described herein. Interest is calculated based on a 360-day year consisting of twelve 30- day months.

Proceeds of the Bonds will be used to (i) fund school fire prevention and safety improvement projects at school buildings in the District and (ii) pay certain costs associated with the issuance of the Bonds.

The Bonds, in the opinion of Bond Counsel, are valid and legally binding obligations of the District, payable both as to principal and interest from ad valorem taxes levied against all taxable property in the District without limitation as to rate, to completion and amendment. Under no cir Under and amendment. to completion except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. The amount of said taxes that may be extended to pay the Bonds is limited as provided by law. See “THE BONDS – Limited Bonds” herein.

The Bonds are not subject to redemption prior to maturity.

The Bonds are offered at public sale, subject to the approval of legality by Chapman and Cutler LLP, Chicago, the Bonds, in any jurisdiction in which such offer, solicitatio in which such offer, in any jurisdiction the Bonds, Illinois, Bond Counsel. Chapman and Cutler LLP is also acting as Disclosure Counsel to the District. Delivery of the Bonds through the facilities of DTC will be on or about May 11, 2010.

e information contained herein are subject are contained herein e information

AS FINANCIAL ADVISOR

The date of this Official Statement is April _, 2010.

+See “BOND RATING” herein. *Preliminary, subject to change. This Preliminary Official Statement and th jurisdiction. solicitation of an offer to buy, nor shall there be any sale of shall there nor to buy, an offer solicitation of

MATURITY SCHEDULE, AMOUNTS, INTEREST RATES, PRICES OR YIELDS AND CUSIPS

$8,430,000* General Obligation Limited Tax School Bonds, Series 2010

Maturity Price or CUSIP** (December 1) Amount ($)* Rate (%) Yield (%) (215489) 2014 500,000 2015 1,905,000 2016 1,955,000 2017 2,005,000 2018 2,065,000

*Preliminary, subject to change. The District reserves the right to increase or decrease the principal amount of each maturity of the Bonds on the day of sale in an amount not to exceed $100,000. The aggregate par amount of the Bonds may decrease in an amount not to exceed $250,000. If any principal amounts are adjusted, the purchase price proposed will be adjusted to maintain the same gross spread per $1,000 bond.

**CUSIP data herein is provided by Standard & Poor’s, CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc.

For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission, this document, as the same may be supplemented or amended by Township High School District Number 203, Cook County, Illinois (the “District”), from time to time (collectively, the “Official Statement”), may be treated as an Official Statement with respect to the Bonds described herein that is deemed final by the District as of the date hereof (or of any such supplement or amendment).

No dealer, broker, salesman or other person has been authorized to give any information or to make any representations other than those contained in this Official Statement, and, if given or made, such other information or representations must not be relied upon as statements of the District or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person, in any jurisdiction in which it is unlawful to make such offer, solicitation or sale. Unless otherwise indicated, the District is the source of all tables and statistical and financial information contained in this Official Statement. The information set forth herein relating to governmental bodies other than the District has been obtained from such governmental bodies or from other sources believed to be reliable. The information and opinions expressed herein are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the District since the date of this Official Statement.

The Underwriter has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as part of its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.

This Official Statement should be considered in its entirety and no one factor considered less important than any other by reason of its position in this Official Statement. Where statutes, resolutions, reports or other documents are referred to herein, reference should be made to such statutes, resolutions, reports or other documents for more complete information regarding the rights and obligations of parties thereto, facts and opinions contained therein and the subject matter thereof.

Upon issuance, the Bonds will not be registered under the Securities Act of 1933, as amended, and will not be listed on any stock or other securities exchange and neither the Securities and Exchange Commission nor any other Federal, State, Municipal or other governmental entity, other than the District, shall have passed upon the accuracy or adequacy of this Official Statement.

Certain persons participating in this offering may engage in transactions that maintain or otherwise affect the price of the Bonds. Specifically, the Underwriter may overallot in connection with the offering, may bid for, and purchase, the Bonds in the open market. The prices and other terms respecting the offering and sale of the Bonds may be changed from time to time by the Underwriter after the Bonds are released for sale, and the Bonds may be offered and sold at prices other than the initial offering prices, including sales to dealers who may sell the Bonds into investment accounts.

Township High School District Number 203 (New Trier) 7 Happ Road Northfield, Illinois 60093 (847) 446-7000

* * * * * * * * * * * * * * * * * * Board of Education James B. Koch, President Wendy M. Serrino, Vice President Lou Anne Kelly, Secretary (Appointed) Alan R. Dolinko Carol F. Ducommun Malcolm “Mac” Harris Robert A. Merrick John Myefski

Treasurer Donald R. Goers

Superintendent Linda L. Yonke

Associate Superintendent Donald R. Goers

* * * * * * * * * * * * * * * * * * Paying Agent/Bond Registrar The Bank of New York Mellon Trust Company, National Association 2 North LaSalle Street, Suite 1020 Chicago, Illinois 60602

Independent Auditors Baker Tilly Virchow Krause, LLP 1301 West 22nd Street, Suite 400 Oak Brook, Illinois 60523

Bond and Disclosure Counsel Chapman and Cutler LLP 111 West Monroe Street Chicago, Illinois 60603

Financial Advisor PMA Securities, Inc. 2135 CityGate Lane, 7th Floor Naperville, Illinois 60563

TABLE OF CONTENTS PAGE

INTRODUCTION...... 1 THE BONDS ...... 1 General Description...... 1 Registration and Exchange...... 1 Authority and Purpose...... 2 Security and Payment...... 2 Limited Bonds...... 3 THE PROJECT ...... 4 SOURCES AND USES ...... 4 BOOK-ENTRY SYSTEM ...... 5 REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES ...... 7 Summary of Property Assessment, Tax Levy and Collection Procedures ...... 7 Real Property Assessment...... 7 Equalization...... 9 Exemptions...... 10 Tax Levy ...... 12 Property Tax Extension Limitation Law ...... 12 Extensions ...... 13 Collections...... 13 Truth in Taxation Law...... 15 THE DISTRICT...... 15 General Description...... 15 Educational Facilities ...... 15 Enrollments ...... 15 The Board of Education ...... 16 Administration...... 16 Employees ...... 16 SOCIO-ECONOMIC CHARACTERISTICS...... 17 Population Trend...... 17 Education...... 17 Income...... 18 Housing ...... 19 Residential Housing Building Permits ...... 20 Retail Sales...... 21 Employment ...... 21 Largest Area Employers...... 22 Unemployment...... 22 Historical Unemployment Statistics ...... 22 FINANCIAL INFORMATION ...... 23 Trend of Equalized Assessed Valuation...... 23 Tax Rates...... 23 Representative Tax Rates for Property within the District...... 23 Tax Extensions and Collections ...... 24 Largest Taxpayers ...... 24 Summary of Outstanding Debt...... 24 Debt Repayment Schedule ...... 25 Overlapping Bonded Debt...... 26 Debt Statement ...... 26 Debt Ratios...... 27 SUMMARY OF OPERATING RESULTS ...... 27 General Fund Revenue Sources ...... 27 General Fund...... 27 Working Cash Fund ...... 28 Budget Summary...... 29

SHORT-TERM FINANCING RECORD ...... 29 FUTURE FINANCING ...... 29 DEFAULT RECORD ...... 29 SCHOOL DISTRICT FINANCIAL PROFILE ...... 29 TAX EXEMPTION ...... 30 QUALIFIED TAX-EXEMPT OBLIGATIONS ...... 33 LITIGATION...... 33 RETIREMENT PLANS...... 33 Teacher’s Retirement System of the State of Illinois ...... 33 Illinois Municipal Retirement Fund ...... 34 BOND RATING ...... 34 CONTINUING DISCLOSURE ...... 34 THE UNDERTAKING...... 35 Annual Financial Information Disclosure ...... 35 Material Events Disclosure ...... 35 Consequences of Failure of the District to Provide Information...... 36 Amendment; Waiver ...... 36 Termination of Undertaking...... 37 Additional Information...... 37 Dissemination of Information; Dissemination Agent...... 37 CERTAIN LEGAL MATTERS...... 37 UNDERWRITING...... 38 FINANCIAL ADVISOR ...... 38 THE OFFICIAL STATEMENT ...... 38 Accuracy and Completeness of the Official Statement...... 38

Appendices: A. Form of Legal Opinion of Bond Counsel B. Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2009 C. Official Notice of Sale and Bid Form

$8,430,000* Township High School District Number 203 Cook County, Illinois (New Trier) General Obligation Limited Tax School Bonds, Series 2010

INTRODUCTION

The purpose of this Official Statement is to set forth certain information concerning Township High School District Number 203, Cook County, Illinois (the “District”), in connection with the offering and sale of its $8,430,000* General Obligation Limited Tax School Bonds, Series 2010 (the “Bonds”). This Official Statement includes the cover page, the reverse thereof and the Appendices. Certain factors that may affect an investment decision concerning the Bonds are described throughout this Official Statement. Persons considering a purchase of the Bonds should read this Official Statement in its entirety.

THE BONDS General Description

The Bonds will be issued in fully registered form, without coupons, in denominations of $5,000 each or authorized integral multiples thereof under a book-entry only system operated by The Depository Trust Company, New York, New York (“DTC”). Principal of and interest on the Bonds will be payable as described under the caption “BOOK-ENTRY SYSTEM” by The Bank of New York Mellon Trust Company, National Association, Chicago, Illinois, as paying agent and registrar (the “Registrar”).

The Bonds will be dated as of the date of delivery and will mature as shown on the inside cover page of this Official Statement. Interest on the Bonds will be payable on each June 1 and December 1, beginning December 1, 2010. The Bonds will bear interest from their dated date, or from the most recent interest payment date to which interest has been paid or provided for, computed on the basis of a 360-day year consisting of twelve 30-day months. The principal of the Bonds will be payable in lawful money of the United States of America upon presentation and surrender thereof at the principal corporate trust office of the Registrar in Chicago, Illinois. Interest on each Bond will be paid by check or draft of the Registrar payable upon presentation in lawful money of the United States of America to the person in whose name such Bond is registered at the close of business on the 15th day of the month next preceding the interest payment date.

The Bonds are not subject to redemption prior to maturity.

Registration and Exchange

The Bonds may be transferred, registered and assigned only on the registration books of the Registrar, and such registration shall be at the expense of the District; provided, however, that the District 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.

*Preliminary, subject to change.

1 Upon surrender for transfer of any Bond at the principal corporate trust office of the Registrar, duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Registrar and duly executed by, the registered owner or his attorney duly authorized in writing, the District shall execute and the Registrar shall authenticate, date and deliver in the name of the transferee or transferees a new fully registered Bond or Bonds of the same maturity of authorized denominations for a like aggregate principal amount. Any fully registered Bond or Bonds may be exchanged at said office of the Registrar for a like aggregate principal amount of Bond or Bonds of the same maturity and interest rate. The execution by the District of any fully registered Bond shall constitute full and due authorization of such Bond and the Registrar shall thereby be authorized to authenticate, date and deliver such Bond, provided, however, the principal amount of outstanding Bonds of each maturity authenticated by the Registrar shall not exceed the authorized principal amount of Bonds for such maturity less previous retirements.

The Registrar shall not be required to transfer or exchange any Bond during the period beginning at the close of business on the 15th day of the month next preceding any interest payment date on such Bond and ending at the opening of business on such interest payment date.

Authority and Purpose

The Bonds are issued pursuant to the School Code of the State of Illinois (the “Act”), the Local Government Debt Reform Act of the State of Illinois (the “Debt Reform Act”), and all laws amendatory thereof and supplementary thereto and a bond resolution adopted by the Board of Education (the “Board”) of the District on April 19, 2010 (the “Bond Resolution”). Proceeds of the Bonds will be used to (i) fund school fire prevention and life safety improvement projects at school buildings in the District (see “THE PROJECT” herein) and (ii) pay costs associated with the issuance of the Bonds.

Security and Payment

The Bonds, in the opinion of Bond Counsel, are payable from ad valorem taxes levied against all of the taxable property in the District without limitation as to rate, except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting creditors' rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. The amount of said taxes that may be extended to pay the Bonds is limited as provided by law. See “Limited Bonds” herein.

The Bond Resolution will be filed with the County Clerk of Cook County, Illinois (the “County Clerk”) and will serve as authorization to the County Clerk to extend and collect the property taxes as set forth in the Bond Resolution.

The form of the opinion of Bond Counsel is set forth in Appendix A.

2 Limited Bonds

The Bonds are limited bonds and are issued pursuant to the Act, as supplemented and amended, and particularly as supplemented by the Debt Reform Act. Although the obligation of the District to pay the Bonds is a general obligation under the Act and all taxable property in the District is subject to the levy of taxes to pay the Bonds without limitation as to rate, the amount of said taxes that will be extended to pay the Bonds is limited by the Property Tax Extension Limitation Law of the State of Illinois, as amended (the “Limitation Law”).

The Debt Reform Act provides that the 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 pursuant to Public Act 96-501, commencing with the 2009 levy year, by the lesser of 5% or the percentage increase in the Consumer Price Index (as defined in the Limitation Law) during the 12-month calendar year preceding the levy year. The Limitation Law further provides that the annual amount of taxes to be extended to pay the Bonds and all other limited bonds heretofore and hereafter issued by the District shall not exceed the Base.

At closing, the Bonds will constitute one of four series of limited bonds of the District that are payable from the Base. Payments on the Bonds from the Base will be made on a parity with the payments on the District’s outstanding General Obligation Limited Tax Capital Appreciation School Bonds, Series 2004, General Obligation Limited Tax School Bonds, Series 2006, and General Obligation Limited Tax School Bonds, Series 2008A. 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. The amount of the Base for the 2010 levy year has been determined to be $2,500,786, which is calculated as follows:

Original Debt Service Extension Base ...... $2,432,608 Levy Year 2009 0.1% CPI Increase ...... 2,432 Debt Service Extension Base Levy Year 2009...... $2,435,040 Levy Year 2010 2.7% CPI Increase ...... 65,746 Debt Service Extension Base Levy Year 2010...... $2,500,786

The following chart shows the Base of the District, the debt service on the District’s outstanding limited tax bonds and the debt service on the Bonds.

3

Outstanding Debt Total Limited

Levy Limited Tax Service on the Tax Debt Available Year Debt Service Bonds* Service* Base Base (1)*

2009$ 2,428,053 $ 134,601 $ 2,562,653 $ 2,435,040 $ (127,613) 2010 2,429,303 242,281 2,671,584 2,500,786 (170,798) 2011 2,430,390 242,281 2,672,671 2,500,786 (171,885) 2012 2,429,540 242,281 2,671,821 2,500,786 (171,035)

2013 1,394,550 742,281 2,136,831 2,500,786 363,955 2014 - 2,136,031 2,136,031 2,500,786 364,755 2015 - 2,136,025 2,136,025 2,500,786 364,761 2016 - 2,132,263 2,132,263 2,500,786 368,524

2017 - 2,132,113 2,132,113 2,500,786 368,674 Totals $ 11,111,835 $ 10,140,157 $ 21,251,992

*Preliminary, subject to change. (1) The District intends to pay debt service due on the Bonds in excess of the Base from funds on hand. The District also anticipates paying a portion of the debt service shown in excess of the Base from annual increases in the Base as authorized by Public Act 96-501.

THE PROJECT

Proceeds of the Bonds will be used for various health, life and safety projects at the Northfield and Winnetka campuses. The District expects to complete the improvements by 2012.

SOURCES AND USES

Estimated Source of Funds Par Amount of the Bonds...... Original Issue Premium ...... Total Sources......

Estimated Uses of Funds Deposit into the Project Fund ...... Costs of Issuance* ...... Total Uses......

*Includes Underwriter’s discount, Bond Counsel fee, Financial Advisor fee, Registrar’s fee and other costs of issuance.

4 BOOK-ENTRY SYSTEM

DTC will act as securities depository for the Bonds. The Bonds will be issued as fully registered bonds registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully registered Bond will be issued for each maturity of the Bonds, in the aggregate principal amount of such maturity, and will be deposited with DTC.

DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934 (the “1934 Act”). DTC holds and provides asset servicing for over 3,500,000 million U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other bond transactions in deposited bonds, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of bond certificates. Direct Participants include both U.S. and non- U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation (“DTCC”). DTCC, is the holding company for DTC, National Securities Clearing Corporation, Fixed Income Clearing Corporation, all of which are registered cleaning agencies DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non U.S. securities brokers and dealers, banks trust companies, and clearing corporation that clear through or maintain a custodial relationships with a Direct Participant, either directly or indirectly (“Indirect Participations”). DTC has Standard & Poor’s Rating Services, a Division of the McGraw–Hill Companies, Inc. highest rating: AAA. The DTC Rules applicable to its participants are on file with the Securities and Exchange Commission (the “Commission”). More information about DTC can be found at www.dtcc.com and www.dtc.org.

Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book-entry system for the Bonds is discontinued.

To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited,

5 which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers.

Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the Registrar and request that copies of notices be provided directly to them.

Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed.

Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the District as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).

Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detailed information from the District or Registrar, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with bonds held for the accounts of customers in bearer form or registered in “street name,” and will be the responsibility of such Participant and not of DTC, the Registrar, or the District, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the District or the Registrar, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to Beneficial Owners will be the responsibility of Direct and Indirect Participants.

DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonable notice to the District or the Registrar. Under such circumstances, in the event that a successor securities depository is not obtained, Bond certificates are required to be printed and delivered.

The District may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered.

The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that the District believes to be reliable, but the District takes no responsibility for the accuracy thereof. 6 The District will have no responsibility or obligation to any Securities Depository, any Participants in the Book-Entry System or the Beneficial Owners with respect to (i) the accuracy of any records maintained by the Securities Depository or any Participant; (ii) the payment by the Securities Depository or by any Participant of any amount due to any Beneficial Owner in respect of the principal amount or redemption price of, or interest on, any Bonds; (iii) the delivery of any notice by the Securities Depository or any Participant; (iv) the selection of the Beneficial Owners to receive payment in the event of any partial redemption of the Bonds; or (v) any other action taken by the Securities Depository or any Participant.

REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES

Summary of Property Assessment, Tax Levy and Collection Procedures

A separate tax to pay the principal of and interest on the Bonds will be levied on all taxable real property within the District. The information under this caption describes the current procedures for real property assessments, tax levies and collections in Cook County, Illinois (the “County”). There can be no assurance that the procedures described herein will not change.

Real Property Assessment

The County Assessor (the “Assessor”) is responsible for the assessment of all taxable real property within the County, including that in the District, except for certain railroad property and pollution control facilities, which are assessed directly by the Illinois Department of Revenue (the “Department of Revenue”). For triennial reassessment purposes, the County is divided into three districts: west and south suburbs (the “South Tri”), north and northwest suburbs (the “North Tri”), and the City of Chicago (the “City Tri”). The District is located in the North Tri and will be reassessed for the 2010 tax levy year.

In response to the downturn of the real estate market, on May 11, 2009, the Cook County Assessor announced a proposal to reduce the 2009 assessed value on suburban residential properties (specifically, those properties located in the South Tri and the North Tri) not originally scheduled for reassessment this year. If enacted, each suburban township would receive an adjustment percentage for tax year 2009, lowering the existing assessed values of all residential properties in that township within a range of 4% to 15%. The reductions are expected to take effect in the second-installment tax bills payable in the fall of 2010. Any market adjustments to the North Tri and the South Tri will be coordinated with the 2009 triennial reassessment of the City Tri.

Real property in the County is separated into classes for assessment purposes. After the County Assessor establishes the fair market value of a parcel of property, that value is multiplied by the appropriate classification percentage to arrive at the assessed valuation (the “Assessed Valuation”) for the parcel. The classification percentages range from 16% for certain residential, commercial and industrial property to 36% and 38%, respectively, for other industrial and commercial property. On September 17, 2008, the Cook County Board of Commissioners approved changes to the property classification ordinance. The changes reduce the percentages used to calculate the assessed value of real property in the County for real estate tax purposes. These reductions will take effect in the 2009 tax levy year. Such new classification percentages range from 10% for certain residential, commercial and industrial property to 25% for other industrial and commercial property.

Property is classified for assessment into six basic categories, each of which beginning in the 2009 tax year is assessed at various percentages of fair market value as follows: Class 1) unimproved 7 real estate - 10%; Class 2) residential - 10%; Class 3) rental-residential - 16%, in tax year 2009, 13% in assessment year 2010, and 10% in assessment year 2011 and subsequent years; Class 4) not-for- profit - 25%; Class 5a) commercial - 25%; Class 5b) industrial - 25%. There are also seven additional categories. Newly constructed industrial properties or substantially rehabilitated sections of existing industrial properties within the County may qualify for a Class 6b assessment level, which assessment level is 10% for the first 10 years and for any subsequent 10-year renewal periods. However, if the incentive is not renewed, the 6b assessment level is 15% in year 11 and 20% in year 12, hereafter reverting to Class 5b. Real estate, which is to be used for industrial or commercial purposes where such real estate has undergone environmental testing and remediation, may be eligible for a Class C assessment level. The Class C assessment level for industrial properties is 10% for the first 10 years, 15% in year 11 and 20% in year 12, thereafter reverting to Class 5b. Class C commercial properties are assessed at 10% for the first 10 years, 15% in year 11 and 20% in year 12, thereafter reverting to Class 5a. Commercial properties that are newly constructed or substantially rehabilitated and are within an area determined to be an area in need of commercial development may be classified as Class 7a or 7b property, and will then be assessed at a level of 10% for the first 10 years, 15% in year 11 and 20% in year 12, thereafter reverting to Class 5a. Certain commercial and industrial properties located in zones determined to be in need of substantial revitalization or in an enterprise community could be eligible for Class 8 assessments. The Class 8 assessment level for industrial properties is 10% for the first 10 years and for any subsequent 10-year renewal periods. If the incentive is not renewed, the Class 8 assessment level for industrial properties is 15% in year 11 and 20% in year 12, thereafter reverting to Class 5b. The Class 8 assessment level for commercial properties is 10% for the first 10 years, 15% in year 11 and 20% in year 12, thereafter reverting to Class 5a. Substantially rehabilitated or new construction multi-family residential properties within certain target areas, empowerment or enterprise zones may be eligible for Class 9 categorization. The Class 9 assessment level is 10% for an initial 10-year period, renewable upon application for additional 10-year periods. When the Class 9 assessment level expires, the assessment level reverts to the applicable classification. Rental- residential (Class 3) properties subject to a Section 8 contract that has been renewed under the “Mark Up To Market” option may qualify for a Class S assessment level. The Class S assessment level is 10% for the term of the Section 8 contract renewal under the Mark Up To Market option, and for any additional terms of renewal of the Section 8 contract under the Mark Up To Market option. When the Class S assessment level expires, the assessment level reverts to Class 3. Substantially rehabilitated properties which are designated as Class 3, Class 4, Class 5a or Class 5b and which qualify as Landmark or Contributing buildings may qualify for a Class L assessment level. The Class L assessment level for Class 3, 4 or 5b properties is 10% for the first 10 years and for any subsequent 10- year renewal periods. If the incentive is not renewed, the Class L assessment level is 15% in year 11 and 20% in year 12, thereafter reverting to Class 3, 4 or 5b. Class L commercial properties are assessed at 10% for the first 10 years, 15% in year 11 and 20% in year 12, thereafter reverting to Class 5a.

The Assessor has established procedures enabling taxpayers to contest their proposed Assessed Valuations. Once the Assessor certifies its final Assessed Valuations, a taxpayer can seek review of its assessment by appealing to the Cook County Board of Review, which consists of three commissioners elected by the voters of the County. The Board of Review has the power to adjust the Assessed Valuations set by the Assessor.

Owners of both residential property having six or fewer units and owners of real estate other than residential property with six or fewer units are able to appeal decisions of the Board of Review to the Illinois Property Tax Appeal Board (the “PTAB”), a statewide administrative body. The PTAB has the power to determine the Assessed Valuation of real property based on equity and the weight of the

8 evidence. Taxpayers may appeal the decision of PTAB to either the Circuit Court of Cook County or the Illinois Appellate Court under the Illinois Administrative Review Law.

As an alternative to seeking review of Assessed Valuations by PTAB, taxpayers who have first exhausted their remedies before the Board of Review may file an objection in the Circuit Court of Cook County similar to the previous judicial review procedure but with a different standard of proof than that previously required. In addition, in cases where the Assessor agrees that an assessment error has been made after tax bills have been issued, the Assessor can correct any factual error, and thus reduce the amount of taxes due, by issuing a Certificate of Error. Certificates of Error are not issued in cases where the only issue is the opinion of the valuation of the property.

Equalization

After the County Assessor has established the Assessed Valuation for each parcel for a given year, and following any revisions by the Board of Review or PTAB, the Department of Revenue is required by statute to review the Assessed Valuations. The Department of Revenue establishes an equalization factor (the “Equalization Factor”), commonly called the “multiplier,” for each county to make all valuations uniform among the 102 counties in the State. Under State law, the aggregate of the assessments within each county is to be equalized at 33-1/3% of the estimated fair cash value of real property located within the county prior to any applicable exemptions. One multiplier is applied to all property in the County, regardless of its assessment category, except for some farmland property which is not subject to equalization.

Once the Equalization Factor is established, the Assessed Valuation, as revised by the Board of Review or PTAB, is multiplied by the Equalization Factor to determine the equalized assessed valuation (the “EAV”) of that parcel. The EAV for each parcel is the final property valuation used for determination of tax liability. The aggregate EAV for all parcels in any taxing body’s jurisdiction, plus the valuation of property assessed directly by the State, constitutes the total real estate tax base for the taxing body and is the figure used to calculate tax rates (the “Assessment Base”). The following table sets forth the Equalization Factor for the County for the last 10 tax levy years.

TAX LEVY YEAR EQUALIZATION FACTOR 1999 2.2505 2000 2.2235 2001 2.3098 2002 2.4689 2003 2.4598 2004 2.5757 2005 2.7320 2006 2.7076 2007 2.8439 2008 2.9786

9 Exemptions

Public Act 95-644, effective October 17, 2007, made changes to and added a number of property tax exemptions taken by residential property owners. These changes are discussed below.

An annual General Homestead Exemption provides that the EAV of certain property owned and used for residential purposes (“Residential Property”) may be reduced by $5,000 for assessment years 2004 through assessment year 2007. Additionally, the reduction may be $5,500 for assessment year 2008, and $6,000 for assessment years 2009 and forward (the “General Homestead Exemption”).

The Alternative General Homestead Exemption (the “Alternative General Homestead Exemption”) caps EAV increases for homeowners (who also reside on the property as their principal place of residence) at 7% a year, up to a certain maximum each year as defined by the statute. Any amount of increase that exceeds the maximum exemption as defined is added to the 7% increase and is part of that property’s taxable EAV. Homes that do not increase by at least 7% a year are entitled, in the alternative, to the General Homestead Exemption as discussed above.

The Base Year for purposes of calculation of the Alternative General Homestead Exemption is 2002 for properties located in the City Tri, 2003 for properties located in the North Tri and 2004 for properties located in the South Tri. The Base Homestead Value is the EAV of the homestead property minus the General Homestead Exemption for that year: $4,500 for years prior to 2004; $5,000 for 2004 through 2007; $5,500 for 2008 and $6,000 for the year 2009 and thereafter.

For properties in the City Tri, the Alternative General Homestead Exemption cannot exceed $33,000 for assessment year 2006 (except as noted below), $26,000 for assessment year 2007, $20,000 for assessment year 2008 and $6,000 thereafter. For properties in the North Tri, the Alternative General Homestead Exemption cannot exceed $20,000 for assessment year 2006, $33,000 for assessment year 2007, $26,000 for assessment year 2008, $20,000 for assessment year 2009 and $6,000 thereafter. For properties in the South Tri, the Alternative General Homestead Exemption cannot exceed $20,000 for assessment years 2006 and 2007, $33,000 for assessment year 2008, $26,000 for assessment year 2009, $20,000 for assessment year 2010 and $6,000 thereafter.

Furthermore, only in the City Tri and only for assessment year 2006, the maximum exemption amount may be increased to: (i) $40,000, provided that the EAV of the property for assessment year 2006 exceeds the EAV of that property for assessment year 2002 by an amount equal to or greater than 100%, or (ii) $35,000 provided that the EAV of the property for assessment year 2006 exceeds the EAV of that property for assessment year 2002 by an amount greater than 80% but not more than 100%.

Finally, the Long-Time Occupant Homestead Exemption applies to those counties subject to the Alternative General Homestead Exemption, including the County. Beginning with assessment year 2007 and thereafter, the EAV of homestead property of a taxpayer who has owned the property for at least 10 years (or 5 years if purchased with certain government assistance) and who has a household income of $100,000 or less (“Qualified Homestead Property”) may increase by no more than 10% per year. If the taxpayer’s annual income is $75,000 or less, the EAV of the Qualified Homestead Property may increase by no more than 7% per year. There is no exemption limit for Qualified Homestead Properties. Individuals applying for this exemption must comply with the following guidelines: (i) continuously occupy their property for 10 years, as of January 1st of the assessment year, and occupy such property as their principal residence or, (ii) continuously occupy their property

10 as their principal place of residence for 5 years, as of January 1st of the assessment year, provided that the property was purchased with certain government assistance.

In addition, the Homestead Improvement Exemption (“Homestead Improvement Exemption”) applies to residential properties that have been improved and to properties that have been rebuilt in the two 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.

Additional exemptions exist for senior citizens. The Senior Citizens Homestead Exemption (“Senior Citizens Homestead Exemption”) operates annually to reduce the EAV on a senior citizen’s home by $3,500 in all counties. In addition, for assessment year 2008 and thereafter, the maximum reduction is $4,000 for all counties. Furthermore, property that is first occupied as a residence after January 1 of any assessment year by a person who is eligible for the Senior Citizens Homestead Exemption must be granted a prorata exemption for the assessment year based on the number of days during the assessment year that the property is occupied as a residence by a person eligible for the exemption.

A Senior Citizens Assessment Freeze Homestead Exemption (“Senior Citizens Assessment Freeze Homestead Exemption”) freezes property tax assessments for homeowners who are 65 and older, reside in their property as their principal place of residence and receive a household income not in excess of the maximum income limitation. The maximum income limitation is $50,000 for assessment years 2006 and 2007; for assessment years 2008 and after, the maximum income limitation is $55,000. In general, the exemption grants qualifying senior citizens an exemption based upon a “freeze” of their home’s Assessed Valuation.

Another exemption, available to disabled veterans, may be applied annually to exempt up to $70,000 of the Assessed Valuation of property owned and used exclusively by such veterans or their spouses for residential purposes. However, individuals claiming exemption under the Disabled Persons’ Homestead Exemption (“Disabled Persons’ Homestead Exemption”) or the hereinafter defined Disabled Veterans Standard Homestead Exemption cannot claim the aforementioned exemption.

Also, certain property is exempt from taxation on the basis of ownership and/or use, such as public parks, not-for-profit schools and public schools, churches, and not-for-profit hospitals and public hospitals.

Furthermore, 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 Disabled Persons’ Homestead Exemption.

In addition, the Disabled Veterans Standard Homestead Exemption (“Disabled Veterans Standard Homestead Exemption”) provides disabled veterans an annual homestead exemption starting with assessment year 2007 and thereafter. Specifically, (i) those veterans with a service-connected disability of 75% are granted an exemption of $5,000 and (ii) those veterans with a service-connected disability of less than 75%, but at least 50%, are granted an exemption of $2,500. Furthermore, the veteran’s surviving spouse is entitled to the benefit of the exemption, provided that the spouse has legal or beneficial title of the homestead, resides permanently on the homestead and does not remarry. 11 However, individuals claiming exemption as a disabled veteran or claiming an exemption under the Disabled Persons’ Homestead Exemption cannot claim the aforementioned exemption.

Also, beginning with assessment year 2007, the Returning Veterans’ Homestead Exemption (“Returning Veterans’ Homestead Exemption”) is available for property owned and occupied as the principal residence of a veteran in the assessment year the veteran returns from an armed conflict while on active duty in the United States armed forces. This provision grants a homestead exemption of $5,000, which is applicable in all counties. In order to apply for this exemption, the individual must pay real estate taxes on the property, own the property or have either a legal or an equitable interest in the property, subject to some limitations. Those individuals eligible for this exemption may claim the exemption in addition to other homestead exemptions, unless otherwise noted.

Tax Levy

As part of the annual budgetary process of governmental units (the “Units”) with power to levy taxes in the County, proceedings are adopted by the designated body for each Unit each year in which they determine to levy real estate taxes. The administration and collection of real estate taxes is statutorily assigned to the County Clerk and the County Treasurer. After the Units file their annual tax levies, the County Clerk computes the annual tax rate for each Unit. The Cook County Clerk uses the prior year’s EAV to compute the taxing district’s maximum allowable levy. The maximum that can be raised for a Unit is the maximum tax rate for that Unit multiplied by the prior year EAV for all property currently in the district. The prior year EAV includes the prior year EAV plus the EAV of any new property, the current year value of any annexed property, and any recovered tax increment value, minus any disconnected property for the current year under the Limitation Law. The tax rate for a Unit is computed by dividing the lesser of the maximum allowable levy or the actual levy by the current year EAV.

Property Tax Extension Limitation Law

The Limitation Law is applied after the prior year EAV limitation. 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. 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.

The use of prior year EAV to limit the allowable tax levy may reduce tax rates for funds that are at or near their maximum rates in districts with rising EAVs. These reduced rates and all other rates for those funds subject to the Limitation Law are added together, which results in the aggregate preliminary rate. The aggregate preliminary rate is then compared to the limiting rate. If the limiting rate is more than the aggregate preliminary rate, there is no further reduction in rates due to the Limitation Law. If the limiting rate is less than the aggregate preliminary rate, the aggregate preliminary rate is further reduced to the limiting rate. In all cases, taxes are extended using current year EAV under Section 18-140 of the Property Tax Code.

The District has the authority to levy taxes for many different purposes. See “CERTAIN FINANCIAL INFORMATION-Tax Rates” 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 12 (iv) limited to the rate approved by referendum. Public Act 94-0976, 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) 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.

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. Local governments, including the District, can issue limited tax bonds (such as the Bonds) in lieu of general obligation bonds that have otherwise been authorized by applicable law. See “THE BONDS – Limited Bonds” herein.

Extensions

The County Clerk then computes the total tax rate applicable to each parcel of real property by aggregating the tax rates of all of the Units having jurisdiction over the particular parcel. The County Clerk extends the tax by entering the tax (determined by multiplying the total tax rate by the EAV of that parcel for the current tax year) in the books prepared for the County Collector (the “Warrant Books”) along with the tax rates, the Assessed Valuation and the EAV. The Warrant Books are the County Collector’s authority for the collection of taxes and are used by the County Collector as the basis for issuing tax bills to all property owners.

Collections

Property taxes are collected by the County Collector, who is also the County Treasurer, who remits to each Unit its share of the collections. Taxes levied in one year become payable during the following year in two installments, the first due on March 1 and the second on the later of August 1 or 30 days after the mailing of the tax bills. A payment due is deemed to be paid on time if the payment is postmarked on the due date. Pursuant to Public Act 96-0490, effective August 14, 2009, the first installment is equal to 55% of the prior years’ tax bill. However, if a certificate of error is approved by a court or certified on or before November 30 of the preceding year and before the estimated tax bills are prepared, then the first installment is instead equal to one-half of the corrected prior year’s tax bill. The second installment is for the balance of the current year’s tax bill, and is based on the then current tax year levy, assessed value and Equalization Factor, and reflects any changes from the prior year in those factors. The following table sets forth the second installment penalty date for the last ten tax levy years in Cook County; the first installment penalty date has been March 1 for all such years.

13

SECOND INSTALLMENT TAX LEVY YEAR PENALTY DATE

1999 October 2, 2000 2000 November 1, 2001 2001 November 1, 2002 2002 October 1, 2003 2003 November 15, 2004 2004 November 1, 2005 2005 September 1, 2006 2006 December 3, 2007 2007 November 3, 2008 2008 December 1, 2009

It is possible that the changes to the assessment appeals process described above will cause delays similar to those experienced in past years in preparation and mailing of second installment in future years. The County may provide for tax bills to be payable in four installments instead of two. The County has not determined to require payment of tax bills in four installments. During the periods of peak collections, tax receipts are forwarded to each Unit on a weekly basis. Upon receipt of taxes from the County Collector, the District promptly credits the taxes received to the funds for which they were levied.

At the end of each collection year, the County Collector presents the Warrant Books to the Circuit Court and applies for a judgment for all unpaid taxes. The court orders resulting from the application for judgment provides for an annual tax sale (the “Annual Tax Sale”) of unpaid taxes shown on that year’s Warrant Books. A public sale is held, at which time successful tax buyers pay the unpaid taxes plus penalties. Unpaid taxes accrue penalties at the rate of 1.5% per month from their due date until the date of sale. Taxpayers can redeem their property by paying the amount paid at the sale, plus a maximum of 12% for each six month period after the sale. If no redemption is made within the applicable redemption period (ranging from six months to two and one-half years depending on the type and occupancy of the property) and the tax buyer files a petition in the Circuit Court, notifying the necessary parties in accordance with the applicable law, the tax buyer receives a deed to the property. In addition, there are miscellaneous statutory provisions for foreclosure of tax liens.

If there is no sale of the tax lien on a parcel of property at the Annual Tax Sale, the taxes are forfeited and the property becomes eligible to be purchased at any time thereafter at an amount equal to all delinquent taxes and interest accrued to the date of purchase. Redemption periods and procedures are the same as applicable to the Annual Tax Sale.

The scavenger sale (the “Scavenger Sale”), like the Annual Tax Sale, is a sale of unpaid taxes. The Scavenger Sale is scheduled to be held every two years on all property on which two or more years’ taxes are delinquent. The sale price of the unpaid taxes is the amount bid at such sale, which may be less than the amount of delinquent taxes. Redemption periods vary from six months to two and one-half years depending upon the type and occupancy of the property.

14 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.

The provisions of the Law do not apply to levies made to pay principal of and interest on the Bonds. The District covenanted in the Bond Resolution that it will not take any action which would adversely affect the levy, extension, collection, and application of the taxes levied by the District for payment of principal of and interest on the Bonds. The District also covenanted that it will comply with all present and future laws concerning the levy, extension, and collection of such taxes levied by the District.

THE DISTRICT

General Description

The District is located along the western shore of Lake Michigan approximately 16 miles north of Chicago. Organized in 1901, the District currently encompasses over 19 square miles. The District serves the Villages of Glencoe, Kenilworth, Northfield, Wilmette and Winnetka as well as small portions of the Villages of Northbrook and Glenview and unincorporated Niles Township. Transportation needs of District residents are primarily accommodated by Interstate 94 (Edens Expressway). Commuter rail transportation to the City of Chicago is available via the Northwestern/North and Chicago lines. O’Hare International Airport is approximately 18 miles southwest of the District. The District is governed by a seven member Board, and day-to-day operations are administered by the Superintendent and administrative staff.

Educational Facilities

The District currently operates two school facilities:

Facility Current Enrollment Capacity Enrollment New Trier High School – Northfield Campus ...... 1,017 1,471 New Trier High School – Winnetka Campus...... 3,127 3,064

Enrollments

2005/06 4,094 2010/11* 4,170 2006/07 4,150 2011/12* 4,235 2007/08 4,178 2012/13* 4,211 2008/09 4,151 2013/14* 4,266 2009/10 4,144 2014/15* 4,180

*Projected enrollment Source: The District

15 The Board of Education

The District is governed by a Board whose members are elected for staggered terms of office. The Board is a policy making body whose primary function is to establish policies for the District, provide for the general operation and personnel of the District, and to oversee the property and facilities of the District. The Board elects a President and Vice President from its membership. The present members are as follows:

Title Name Current Term Expires

President James B. Koch April 2011 Vice President Wendy M. Serrino April 2011 Member Alan R. Dolinko April 2013 Member Carol F. Ducommun April 2013 Member Malcolm “Mac” Harris April 2013 Member Robert A. Merrick April 2011 Member John Myefski April 2013 Secretary Lou Anne Kelly Appointed Treasurer Donald R. Goers Appointed

Administration

The Superintendent is Linda L. Yonke, who has been with the District since 2004. Donald R. Goers serves as Associate Superintendent. Mr. Goers has been with the District since 1998 and also serves as the School Treasurer.

Employees

The District currently has 753 employees, of whom 423 are certified and 330 are non-certified. Of the total number, 408 are represented by the New Trier High School Education Association, 206 by the New Trier Educational Support Association and 65 by the New Trier Physical Plant Services Association. The contracts with the unions expire in August 2011, June 2012 and December 2011, respectively. The District considers its relationship with its employees to be excellent.

16 SOCIO-ECONOMIC CHARACTERISTICS

Population Trend

The District’s population is estimated at 56,715. Below are the population statistics for the Villages of Glencoe, Kenilworth, Northfield, Wilmette and Winnetka as well as the County and the State of Illinois (the “State”).

% Change 1990 2000 2009* 1990-2009 Village of Glencoe ...... 8,499 8,762 9,038 6.34% Village of Kenilworth ...... 2,402 2,494 2,397 -0.21% Village of Northfield...... 4,635 5,389 5,429 17.13% Village of Wilmette...... 26,690 27,651 26,418 -1.02% Village of Winnetka...... 12,174 12,419 12,371 1.62% The County...... 5,105,067 5,376,741 5,294,664 3.71% The State ...... 11,430,602 12,419,293 12,910,409 12.95%

*2009 figures reflect the estimated 2009 population for the State and the estimated 2008 population for the County and the Villages of Glencoe, Kenilworth, Northfield, Wilmette and Winnetka (most current figures available). Source: U.S. Census Bureau, 1990 and 2000 Census, 2008 and 2009 Population Estimates

Education

The educational background of District area residents living in the Villages of Glencoe, Kenilworth, Northfield, Wilmette and Winnetka as compared to the County and the State is illustrated in the following table.

Educational Levels for Persons 25 years of Age and Older

Village of Village of Village of Village of Education Level Glencoe Kenilworth Northfield Wilmette Less than 9th Grade...... 1.2% 0.0% 1.2% 1.5% 9th to 12th grade, no diploma...... 1.0 0.2 2.3 1.7 High school graduate...... 4.5 3.8 8.6 7.8 Some college, no degree...... 11.1 5.0 16.2 13.5 Associate degree...... 2.5 1.6 3.6 2.9 Bachelor’s degree...... 39.6 40.1 40.1 34.1 Graduate or professional degree...... 40.2 49.3 28.0 38.5 Total ...... 100.0% 100.0% 100.0% 100.0%

Village of Education Level Winnetka The County The State Less than 9th Grade...... 0.4% 9.6% 7.5% 9th to 12th grade, no diploma...... 0.6 12.7 11.1 High school graduate...... 2.8 24.2 27.7 Some college, no degree...... 9.3 20.3 21.6 Associate degree...... 2.4 5.2 6.1 Bachelor’s degree...... 40.3 17.2 16.5 Graduate or professional degree...... 44.1 10.8 9.5 Total ...... 100.0% 100.0% 100.0%

Please note that totals may not equal 100.0% due to rounding. Source: 2000 Census, U.S. Department of Commerce, Census Bureau

17 Income

The following table sets forth the distribution of household income derived from the 2000 Census for the Villages of Glencoe, Kenilworth, Northfield, Wilmette and Winnetka as compared with the County and the State.

Village of Village of Village of Village of Household Income Glencoe Kenilworth Northfield Wilmette Under $10,000...... 0.7% 0.6% 1.8% 2.6% $10,000 to $14,999...... 2.5 0.0 1.7 1.8 $15,000 to $24,999...... 2.4 2.8 4.4 3.3 $25,000 to $34,999...... 2.5 2.9 6.5 4.9 $35,000 to $49,999...... 3.5 1.4 11.8 8.7 $50,000 to $74,999...... 12.5 4.2 14.0 13.1 $75,000 to $99,999...... 8.5 6.1 13.1 11.6 $100,000 to $149,999...... 14.5 17.4 18.1 20.8 $150,000 to $199,999...... 9.0 12.2 11.2 11.2 $200,000 or more ...... 44.0 52.3 17.5 22.0 100.0% 100.0% 100.0% 100.0%

Median household income ...... $164,432 $200,000+ $91,313 $106,773

Village of Household Income Winnetka The County The State Under $10,000...... 1.8% 9.8% 8.3% $10,000 to $14,999...... 1.0 5.4 5.5 $15,000 to $24,999...... 3.0 10.9 11.3 $25,000 to $34,999...... 2.9 11.7 11.9 $35,000 to $49,999...... 5.6 16.0 16.2 $50,000 to $74,999...... 6.5 19.8 20.7 $75,000 to $99,999...... 8.4 11.3 11.6 $100,000 to $149,999...... 16.5 9.2 9.0 $150,000 to $199,999...... 10.7 2.7 2.6 $200,000 or more ...... 43.7 3.2 2.8 100.0% 100.0% 100.0%

Median household income ...... $167,458 $45,922 $46,590

Please note that totals may not equal 100.0% due to rounding Source: 2000 Census, U.S. Department of Commerce, Census Bureau

18 Housing

The following table sets forth the distribution of home values for owner-occupied units derived from the 2000 U.S. Census as well as the median home value and percent of residences that were owner-occupied for the Villages of Glencoe, Kenilworth, Northfield, Wilmette and Winnetka as well as the County and the State.

Value of Specified Village of Village of Village of Village of Owner-Occupied Units Glencoe Kenilworth Northfield Wilmette Less than $50,000 ...... 0.0% 0.0% 0.0% 0.7% $50,000 to $99,999...... 0.7 0.0 1.4 1.0 $100,000 to $149,999...... 0.3 0.0 4.3 1.6 $150,000 to $199,999...... 2.4 0.0 3.8 2.5 $200,000 to $299,999...... 5.3 2.7 15.8 17.5 $300,000 to $499,999 ...... 23.1 13.2 33.4 36.4 $500,000 to $999,999...... 47.3 35.8 29.1 35.3 $1,000,000 or more ...... 20.9 48.4 12.2 5.0 100.0% 100.0% 100.0% 100.0%

Median value...... $667,000 $972,000 $411,200 $441,600 Owner-occupied ...... 92.8% 96.1% 91.8% 86.8%

Value of Specified Village of Owner-Occupied Units Winnetka The County The State Less than $50,000 ...... 0.2% 1.9% 9.3% $50,000 to $99,999...... 0.3 17.3 26.4 $100,000 to $149,999...... 0.7 26.8 23.6 $150,000 to $199,999...... 1.7 22.5 17.4 $200,000 to $299,999...... 2.3 18.1 14.0 $300,000 to $499,999 ...... 17.5 9.1 6.6 $500,000 to $999,999...... 47.5 3.5 2.3 $1,000,000 or more ...... 29.8 0.8 0.5 100.0% 100.0% 100.0%

Median value...... $756,500 $157,700 $130,800 Owner-occupied ...... 89.6% 57.9% 67.3%

Please note that totals may not equal 100.0% due to rounding Source: 2000 Census, U.S. Department of Commerce, Census Bureau

19 Residential Housing Building Permits

The following table sets forth the reported number of residential building permits issued and relative construction costs in the Villages of Glencoe, Kenilworth, Northfield, Wilmette and Winnetka for each of the years listed.

Village of Glencoe Village of Kenilworth

Reported Reported Number of Number of Year Building Permits Construction Cost Building Permits Construction Cost 2005...... 55 $43,109,782 3 $3,701,264 2006...... 43 32,071,850 1 850,000 2007...... 34 34,751,950 7 6,558,513 2008...... 20 24,830,134 1 1,100,348 2009...... 7 8,928,000 1 5,128,500 2010*...... 0 0 0 0

Village of Northfield Village of Wilmette(1)

Reported Reported Number of Number of Year Building Permits Construction Cost Building Permits Construction Cost 2005...... 15 $13,899,500 55 $24,360,254 2006...... 15 15,679,000 41 18,240,928 2007...... 1 1,600,000 30 13,333,110 2008...... 10 12,660,000 15 6,667,947 2009...... 4 4,052,290 11 4,889,644 2010*...... 0 0 1 444,530

Village of Winnetka

Reported Number of Year Building Permits Construction Cost 2005...... 50 $38,264,900 2006...... 43 30,125,000 2007...... 24 28,605,000 2008...... 14 18,070,000 2009...... 18 25,354,000 2010*...... 3 2,057,000

*Through January 2010 (1) Figures for the Village of Wilmette are as estimated by U.S. Census Bureau

Source: U.S. Census Bureau

20 Retail Sales

The following table demonstrates the estimated 1% sales tax receipts reported by retailers in the Villages of Glencoe, Kenilworth, Northfield, Wilmette and Winnetka for the last five calendar years.

Calendar Village of Village of Village of Village of Village of Year Glencoe Kenilworth Northfield Wilmette Winnetka 2005 $135,901,752 $5,002,642 $184,358,878 $305,857,686 $126,768,456 2006 180,945,707 4,705,731 183,320,323 315,493,901 137,855,101 2007 182,611,724 4,661,122 182,570,554 321,455,845 136,230,594 2008 161,121,643 3,583,239 154,913,794 312,336,196 118,754,104 2009 144,984,335 3,957,031 149,326,865 287,078,374 102,412,976

Source: Illinois Department of Revenue

Employment

The District has an employment base provided by a range of manufacturing, commercial and public enterprises. The following table categorizes occupations for District residents 16 years of age and older living in the Villages of Glencoe, Kenilworth, Northfield, Wilmette and Winnetka compared with the County and the State.

Village of Village of Village of Village of Occupational Category Glencoe Kenilworth Northfield Wilmette Management, professional, and related occupations...... 68.6% 71.1% 51.8% 66.8% Service occupations...... 4.4 4.5 8.5 4.5 Sales and office occupations ...... 23.5 23.4 31.3 24.6 Farming, fishing and forestry occupations...... 0.0 0.0 0.0 0.0 Construction, extraction, and maintenance ...... 2.2 0.7 3.6 1.8 Production, transportation, and material moving ...... 1.3 0.3 4.9 2.1 Totals...... 100.0% 100.0% 100.0% 100.0%

Village of Occupational Category Winnetka The County The State Management, professional, and related occupations...... 69.1% 35.2% 34.2% Service occupations...... 4.4 14.0 13.9 Sales and office occupations ...... 24.1 28.5 27.6 Farming, fishing and forestry occupations...... 0.0 0.1 0.3 Construction, extraction, and maintenance ...... 1.5 7.1 8.2 Production, transportation, and material moving ...... 0.8 15.1 15.8 Totals...... 100.0% 100.0% 100.0%

Please note that totals may not equal 100.0% due to rounding Source: 2000 Census, U.S. Department of Commerce, Census Bureau

21

Largest Area Employers

The following table reflects the major private employers in the area surrounding the District by the products manufactured or services performed and approximate number of employees.

Approximate Number of Name Product or Service Location Employees Allstate Insurance Co...... Insurance (company headquarters).... Northbrook ...... 5,750 Northwestern University ...... Private university and educational services...... Evanston ...... 5,200 NorthShore University HealthSystem...... General hospital...... Evanston ...... 3,061 Underwriters Laboratories, Inc...... Independent nonprofit testing and certification...... Northbrook ...... 1,600 Skokie Hospital ...... General hospital...... Skokie...... 1,200 St. Francis Hospital of Evanston...... Hospital ...... Evanston ...... 1,100 Caremark, Inc...... Integrated healthcare services ...... Northbrook ...... 1,000 John Crane, Inc...... Mechanical and lubrication seals (company headquarters) ...... Morton Grove ...... 900 ITT Residential & Commercial Water ...... Centrifugal pumps, valves, controls and package systems for HVAC, plumbing and fire Morton Grove ...... 825 sprinklers...... Avon Products, Inc...... Cosmetics ...... Morton Grove ...... 750

Source: 2009 Manufacturers’ News, Inc. Illinois Manufacturers and Services Directories

Unemployment

Preliminary unemployment statistics for the month of February 2010 as reported by the Illinois Department of Employment Security demonstrate there is 6.6% unemployment in the Village of Wilmette, 11.4% in the County and 12.0% in the State.

Source: Illinois Department of Employment Security

Historical Unemployment Statistics

2005 2006 2007 2008 2009 Village of Glencoe...... 3.4% 2.5% 2.8% 3.7% 6.1% Village of Kenilworth...... 3.2 2.6 2.9 3.6 5.8 Village of Northfield...... 3.7 2.7 3.1 3.7 6.2 Village of Wilmette ...... 3.6 2.8 3.0 3.8 6.2 Village of Winnetka...... 3.3 2.4 2.7 3.5 5.9 The County...... 6.4 4.8 5.2 6.5 10.3 The State...... 5.8 4.6 5.1 6.4 10.1

Source: Illinois Department of Employment Security

22 FINANCIAL INFORMATION

Trend of Equalized Assessed Valuation (Estimated 33 1/3% of Fair Market Value)

By Type 2004 2005 2006 2007 2008*

Residential...... $3,920,081,507 $4,207,525,912 $4,237,189,487 $5,663,371,641 $ Farm ...... 19,349 19,349 19,349 19,329 Commercial ...... 389,917,626 411,659,137 405,140,066 487,572,673 Industrial ...... 68,178,920 91,882,728 75,717,802 88,797,596 Railroad...... 835,675 787,909 784,180 856,021 TOTAL...... $4,379,033,077 $4,711,875,035 $4,718,850,884 $6,240,617,260 $6,599,808,519

*Breakdown of EAV not available at this time. Source: Cook County Clerk’s Office

Tax Rates (Per $100 Equalized Assessed Valuation)

2004 2005 2006 2007 2008 Educational ...... $1.3032 $1.2739 $1.3820 $1.0919 $1.0952 Building ...... 0.1537 0.1507 0.1252 0.0956 0.0856 Tort Immunity...... 0.0138 0.0151 0.0139 0.0088 0.0000 Transportation...... 0.0212 0.0204 0.0193 0.0150 0.0223 IMRF...... 0.0152 0.0159 0.0176 0.0123 0.0128 Social Security...... 0.0284 0.0294 0.0327 0.0229 0.0238 Bond and Interest ...... 0.0853 0.0714 0.0720 0.0525 0.0503 Life Safety ...... 0.0000 0.0000 0.0000 0.0000 0.0000 Total...... $1.6208 $1.5768 $1.6627 $1.2990 $1.2900

Source: Cook County Clerk’s Office

Representative Tax Rates for Property within the District

Taxing Body(1) 2004 2005 2006 2007 2008 The District...... $1.621 $1.577 $1.663 $1.299 $1.290 The County...... 0.593 0.533 0.500 0.446 0.415 Cook County Forest Preserve...... 0.060 0.060 0.057 0.053 0.051 Suburban TB Sanitarium...... 0.001 0.005 0.005 0.000 0.000 Consolidated Elections...... 0.000 0.014 0.000 0.012 0.000 New Trier Township(2) ...... 0.039 0.039 0.042 0.034 0.034 Metropolitan Water Reclamation Dist...... 0.347 0.315 0.284 0.263 0.252 North Shore Mosquito Abatement Dist..... 0.008 0.008 0.009 0.008 0.008 Village of Wilmette...... 0.689 0.671 0.728 0.597 0.593 Wilmette Public Library 0.315 0.283 0.298 0.245 0.241 Wilmette Park District...... 0.440 0.413 0.441 0.360 0.348 School District Number 39...... 2.238 2.151 2.261 1.848 1.812 Community College District No. 535 ...... 0.161 0.158 0.166 0.141 0.140 Total ...... $6.512 $6.227 $6.454 $5.306 $5.184

(1) For a taxpayer residing in the Village of Wilmette. (2) Includes general assistance and road and bridge. Source: Cook County Clerk’s Office

23 Tax Extensions and Collections

2004 2005 2006 2007 2008 Extensions ... $70,975,063 $74,306,629 $78,427,302 $81,065,618 $85,137,530 Collections... 70,114,941 73,475,110 78,131,994 79,756,732 (In Process) % Collected . 98.79% 98.88% 99.62% 98.39%

Source: District Audits

Largest Taxpayers

Taxpayer 2008 EAV Kraft General Foods...... $ 60,984,094 Edens Plaza Freed ...... 28,737,237 1630 Sheridan Corp...... 16,779,001 Bonstores Realty Two...... 13,181,576 Northfield Plaza Property...... 11,594,791 College of America Pathologists...... 10,760,163 Imperial Realty Company ...... 9,865,262 Plaza Del Lago ...... 8,360,767 LJ Thalmann Co...... 7,356,549 191 Waukegan Road LLC...... 6,147,059 Total $173,766,499

The above taxpayers represent 2.63% of the District’s $6,599,808,519 2008 EAV. Every reasonable effort has been made to determine and report the largest taxpayers and to include all taxable property of those taxpayers listed. Many of the taxpayers listed, however, may own multiple parcels, and it is possible that some parcels and their valuations may not be included. The 2008 EAV is the most current available.

Source: Cook County Clerk’s Office

Summary of Outstanding Debt (As of the closing of this issue)

Original Current Amount Amount Final Type Dated Date of Issue Outstanding Maturity Date G. O. Limited Tax Capital Appreciation School Bonds, Series 2004...... 9/15/2004 $7,998,637 $ 4,676,902 12/1/2013 G. O. Refunding School Bonds, Series 2005A...... 4/15/2005 7,030,000 6,205,000 12/1/2018 G. O. Refunding Bonds (Alternate Revenue Source), Series 2005B ...... 4/15/2005 2,125,000 705,000 6/1/2010 G. O. Limited Tax School Bonds, Series 2006...... 12/1/2006 3,735,000 835,000 12/1/2013 G. O. Limited Tax School Bonds, Series 2008A...... 12/29/2008 3,840,000 3,645,000 12/1/2014 G. O. Bonds (Alternate Revenue Source), Series 2008B...... 12/29/2008 2,245,000 2,130,000 12/1/2023 The Bonds*...... 8,430,000 8,430,000 12/1/2018 $26,626,902*

*Preliminary, subject to change.

24

Debt Repayment Schedule

Shown below is the maturity schedule for the outstanding general obligation debt (including alternate bonds) of the District as of the closing of the Bonds.

Principal The Total Cumulative Retirement Fiscal Year Outstanding Bonds* Principal* Amount* Percent* 2010$ 705,000 $ - $ 705,000 $ 705,000 2.65% 2011 2,662,428 - 2,662,428 3,367,428 12.65 2012 2,637,620 - 2,637,620 6,005,048 22.55 2013 2,670,398 - 2,670,398 8,675,446 32.58 2014 2,816,456 - 2,816,456 11,491,902 43.16 2015 2,170,000 500,000 2,670,000 14,161,902 53.19 2016 850,000 1,905,000 2,755,000 16,916,902 63.53 2017 880,000 1,955,000 2,835,000 19,751,902 74.18 2018 920,000 2,005,000 2,925,000 22,676,902 85.17 2019 960,000 2,065,000 3,025,000 25,701,902 96.53 2020 170,000 - 170,000 25,871,902 97.16 2021 175,000 - 175,000 26,046,902 97.82 2022 185,000 - 185,000 26,231,902 98.52 2023 195,000 - 195,000 26,426,902 99.25 2024 200,000 - 200,000 26,626,902 100.00 $ 18,196,902 $ 8,430,000 $ 26,626,902

*Preliminary, subject to change.

25 Overlapping Bonded Debt (As of January 15, 2010)

Taxing Body (1) Outstanding Bonds Percent Amount Applicable The County...... $ 2,897,975,000 3.80%$ 110,123,050 Cook County Forest Preserve...... 117,720,000 3.80% 4,473,360 Metropolitan Water Reclamation District...... 1,392,699,076 3.88% 54,036,724 Village of Glencoe...... 15,395,000 100.00% 15,395,000 Village of Glenview...... 166,170,000 5.34% 8,873,478 Village of Kenilworth...... 7,120,000 100.00% 7,120,000 Village of Northbrook...... 73,600,000 2.75% 2,024,000 Village of Wilmette...... 72,740,000 100.00% 72,740,000 Village of Winnetka...... 2,170,000 100.00% 2,170,000 Glencoe Park District...... 12,810,000 100.00% 12,810,000 Glenview Park District...... 37,790,000 4.84% 1,829,036 Wilmette Park District...... 25,365,000 100.00% 25,365,000 Winnetka Park District...... 2,385,000 100.00% 2,385,000 Glenview Special Service Area No. 22...... 5,059 100.00% 5,059 School District Number 29...... 1,477,946 100.00% 1,477,946 School District Number 35...... 20,035,000 100.00% 20,035,000 School District Number 36...... 57,357,565 100.00% 57,357,565 School District Number 37...... 3,497,192 100.00% 3,497,192 School District Number 38...... 12,345,000 100.00% 12,345,000 School District Number 39...... 12,105,000 100.00% 12,105,000 Total Overlapping General Obligation Bonded Debt……………………………… $ 426,167,410

Source: Cook County Clerk’s Office (1) Does not include Alternate Revenue Bonds.

Debt Statement

Direct Bonded Debt ...... $18,196,902 The Bonds ...... $8,430,000 * Total ...... $26,626,902 * Leases...... $265,961 Net Direct Debt...... $26,892,863 * Overlapping Debt...... $426,167,410 Net Direct and Overlapping Debt ...... $453,060,273 * Equalized Assessed Valuation (2008) ...... $6,599,808,519 Statutory Debt Limit (6.9% of Equalized Assessed Valuation) ...... $455,386,788 Net Direct Debt Applicable to Statutory Debt Margin (1)...... 24,057,863 * Statutory Debt Margin ...... $431,328,925 *

*Preliminary, subject to change. (1) Pursuant to the Debt Reform Act, bonds issued as alternate revenue bonds (such as the District’s General Obligation Refunding Bonds (Alternate Revenue Source), Series 2005B, and General Obligation Bonds (Alternate Revenue Source), Series 2008B), do not count against the debt limit, so long as the debt service levy for the alternate bonds is abated annually.

26 Debt Ratios

Estimated Market Valuation, 2008 ...... $19,799,425,557 Equalized Assessed Valuation, 2008...... $6,599,808,519 Estimated Population ...... 56,715 Net Direct Debt to Equalized Assessed Valuation ...... 0.41% * Net Direct Debt to Estimated Market Valuation ...... 0.14% * Net Direct and Overlapping Debt to Equalized Assessed Valuation...... 6.86% * Net Direct and Overlapping Debt to Estimated Market Valuation...... 2.29% * Net Direct Debt Per Capita ...... $474.18 * Net Direct and Overlapping Debt Per Capita ...... $7,988.37 *

*Preliminary, subject to change.

SUMMARY OF OPERATING RESULTS

General Fund Revenue Sources (Years Ended June 30)

2005 2006 2007 2008 2009 Local Source ...... 95.27% 93.25% 91.87% 89.68% 87.82% State Source ...... 3.07 5.47 6.84 8.94 10.69 Federal Source ...... 1.66 1.28 1.29 1.38 1.49 Total ...... 100.00% 100.00% 100.00% 100.00% 100.00%

Please note that totals may not equal 100.00% due to rounding Source: Compiled from the District’s Comprehensive Annual Financial Reports for Fiscal Years ending June 30, 2005-2009.

General Fund (Years Ended June 30)

2005 2006 2007 2008 2009 Beginning Fund Balance…………… $ 28,464,345 $ 25,236,608 $ 33,227,308 $ 39,753,242 $ 46,415,727 Receipts…………………………… 61,258,016 79,766,403 82,538,278 88,393,811 91,119,095 Disbursements……………………… 64,595,041 74,631,703 76,229,836 82,070,794 85,815,028 Net Surplus (Deficit)……………… (3,337,025) 5,134,700 6,308,442 6,323,017 5,304,067 Transfers…………………………… - - - - - Other Finance Sources……………… 109,288 2,856,000 217,492 339,468 11,025 Ending Fund Balance……………… $ 25,236,608 $ 33,227,308 $ 39,753,242 $ 46,415,727 $ 51,730,819

Source: Compiled from the District’s Comprehensive Annual Financial Reports for Fiscal Years ending June 30, 2005-2009.

27 Working Cash Fund (Years Ended June 30)

The District is authorized to issue (subject to the provisions of the Limitation Law) general obligation bonds to create or increase a Working Cash Fund. Such fund can also be created or increased by the levy of an annual tax not to exceed $0.05 per hundred dollars of EAV. The purpose of the fund is to enable the District to have sufficient cash to meet demands for ordinary and necessary expenditures for school operating purposes. In order to achieve this purpose, the balance in the Working Cash Fund may be loaned, in whole or in part, as authorized and directed by the Board, to any fund of the District in anticipation of ad valorem property taxes levied by the District. The Working Cash Fund is reimbursed when the anticipated taxes or other moneys are received by the District. When a balance is available in the Working Cash Fund, such amounts must be used to the extent possible to avoid the issuance of tax anticipation warrants. The balance in the Working Cash Fund may not be appropriated by the Board in the annual budget. The District also has the authority to abate amounts in the Working Cash Fund to the Educational Fund if the amount on deposit in the Educational Fund after the abatement will not constitute an excess accumulation of money in that fund. Under current law, the Board may transfer money from the Educational Fund to the Operations and Maintenance Fund or to the Capital Projects Fund from which costs of capital projects may be paid.

2005 2006 2007 2008 2009 Beginning Fund Balance……… $ 4,482,611 $ 4,602,705 $ 4,820,861 $ 5,098,812 $ 5,380,214 Receipts……………………… 120,094 218,156 277,951 281,402 161,009 Disbursements………………… - - - - - Net Surplus (Deficit)………… 120,094 218,156 277,951 281,402 161,009 Transfers……………………… - - - - - Other Finance Sources………… - - - - - Ending Fund Balance………… $ 4,602,705 $ 4,820,861 $ 5,098,812 $ 5,380,214 $ 5,541,223

Source: Compiled from the District’s Comprehensive Annual Financial Reports for Fiscal Years ending June 30, 2005-2009.

28 Budget Summary

Below is the District’s budget summary as filed with the Illinois State Board of Education (“ISBE”).

Projected Fund Balances (1) FY10 FY10 FY10 Fund Balances Fund July 1, 2009 Revenue Expenditures Transfers/Other June 30, 2010

Education...... $ 43,896,341 $ 78,956,730 $ 76,264,301 $ 15,000 $ 46,603,770 Operations & Maintenance... 7,834,478 8,609,310 10,972,500 (728,800) 4,742,488

Transportation...... 669,471 2,226,870 2,147,000 - 749,341 IMRF/Social Security...... 1,315,132 2,509,630 2,720,000 - 1,104,762 Working Cash...... 5,541,223 125,000 - - 5,666,223

Total Operating Funds ...... $ 59,256,645 $ 92,427,540 $ 92,103,801 $ (713,800) $ 58,866,584

Debt Service...... 2,025,520 3,314,290 3,252,700 - 2,087,110 Capital Projects...... 2,241,311 28,000 1,771,100 - 498,211 Fire Prevention & Safety...... 2,351,718 55,000 2,900,000 - (493,282) Tort...... - - - - - Total All Funds ...... $ 65,875,194 $ 95,824,830 $ 100,027,601 $ (713,800) $ 60,958,623

(1) The beginning fund balances were revised from the adopted budget to reflect the actual ending fund balances for the prior fiscal year. The budget is adopted before the audit for the prior fiscal year is available. Source: Compiled from the District’s Budget for the Fiscal Year Ending June 30, 2010.

SHORT-TERM FINANCING RECORD

The District has not issued any tax anticipation warrants or tax anticipation notes that are currently outstanding and has no plans to issue tax anticipation warrants or tax anticipation notes in the next six months.

FUTURE FINANCING

The District has no plans to issue any additional debt within the next six months.

DEFAULT RECORD

The District has no record of default and has met its debt repayment obligations promptly.

SCHOOL DISTRICT FINANCIAL PROFILE

Since the spring of 2003, ISBE has utilized a new system for assessing a school district’s financial health. The new financial assessment system is referred to as the “School District Financial Profile” which replaces the Financial Watch List and Financial Assurance and Accountability System (FAAS). The new system identifies those school districts, which are moving into financial distress.

The new system uses five indicators which are individually scored and weighted in order to arrive at a composite district financial profile. The indicators are as follows: fund balance to revenue

29 ratio; expenditures to revenue ratio; days cash on hand; percent of short-term borrowing ability remaining; and percent of long-term debt margin remaining.

Each indicator is calculated and the result is placed into a category of a four, three, two or one, with four being the highest and best category possible. Each indicator is weighted as follows:

Fund balance to revenue ratio 35% Expenditures to revenue ratio 35% Days cash on hand 10% Percent of short–term borrowing ability remaining 10% Percent of long-term debt margin remaining 10%

The scores of the weighted indicators are totaled to obtain a district’s overall score. The highest score is 4.0 and the lowest score is 1.0. A district is then placed in one of four categories as follows:

• Financial Recognition. A school district with a score of 3.54-4.00 is assigned to this category, which is the best category of financial strength. These districts require minimal or no active monitoring by ISBE unless requested by the district.

• Financial Review. A school district with a score of 3.08-3.53 is assigned to this category, the next highest financial strength category. These districts receive a limited review by ISBE, but are monitored for potential downward trends. ISBE staff also review the next year’s school budget for further negative trends.

• Financial Early Warning. A school district with a score of 2.62-3.07 is placed in this category. ISBE monitors these districts closely and offers proactive technical assistance, such as financial projections and cash flow analysis. These districts also are reviewed to determine whether they meet the criteria set forth in Article 1A-8 of the School Code to be certified in financial difficulty and possibly qualify for a Financial Oversight Panel.

• Financial Watch. A school district with a score of 1.00-2.61 is in this category, the highest risk category. ISBE monitors these districts very closely and offers technical assistance with, but not limited to, financial projections, cash flow analysis, budgeting, personnel inventories and enrollment projections. These districts are also assessed to determine if they qualify for a Financial Oversight Panel.

The District’s overall score for Fiscal Year 2009 as reported by ISBE in March 2010 is 4.00, thus placing the District in the Financial Recognition category. The District’s overall score for Fiscal Years 2008 and 2007 was 4.00.

TAX EXEMPTION

Federal tax law contains a number of requirements and restrictions which apply to the Bonds, including investment restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the proper use of bond proceeds and the facilities financed therewith, and certain other matters. The District has covenanted to comply with all requirements that must be satisfied in order for the interest on the Bonds to be excludable from gross income for federal income tax purposes. Failure to comply with certain of such covenants could cause interest on the Bonds to

30 become includable in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds.

Subject to the District’s compliance with the above-referenced covenants, under present law, in the opinion of Bond Counsel, interest on the Bonds (i) is excludable from the gross income of the owners thereof for federal income tax purposes, (ii) is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations and (iii) is not taken into account in computing “adjusted current earnings” as described below.

In rendering its opinion, Bond Counsel will rely upon certifications of the District with respect to certain material facts within the District’s knowledge. Bond Counsel’s opinion represents its legal judgment based upon its review of the law and the facts that it deems relevant to render such opinion and is not a guarantee of a result.

The Internal Revenue Code of 1986, as amended (the “Code”), includes provisions for an alternative minimum tax (“AMT”) for corporations in addition to the corporate regular tax in certain cases. The AMT for a corporation, 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 generally include certain tax-exempt interest, but not interest on the Bonds.

Ownership of the Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, corporations subject to the branch profits tax, financial institutions, certain insurance companies, certain S corporations, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or continued) indebtedness to purchase or carry tax-exempt obligations. Prospective purchasers of the Bonds should consult their tax advisors as to applicability of any such collateral consequences.

The issue price (the “Issue Price”) for each maturity of the Bonds is the price at which a substantial amount of such maturity of the Bonds is first sold to the public. The Issue Price of a maturity of the Bonds may be different from the price set forth, or the price corresponding to the yield set forth, on the inside cover page hereof.

If the Issue Price of a maturity of the Bonds is less than the principal amount payable at maturity, the difference between the Issue Price of each such maturity, if any, of the Bonds (the “OID Bonds”) and the principal amount payable at maturity is original issue discount.

For an investor who purchases an OID Bond in the initial public offering at the Issue Price for such maturity and who holds such OID Bond to its stated maturity, subject to the condition that the District complies with the covenants discussed above, (a) the full amount of original issue discount with respect to such OID Bond constitutes interest which is excludable from the gross income of the owner thereof for federal income tax purposes; (b) such owner will not realize taxable capital gain or market discount upon payment of such OID Bond at its stated maturity; (c) such original issue discount is not included as an item of tax preference in computing the alternative minimum tax for individuals and corporations under the Code; (d) such original issue discount is not taken into account in computing an adjustment used in determining the alternative minimum tax for certain corporations under the Code, as described above; and (e) the accretion of original issue discount in each year may result in certain other collateral federal income tax consequences in each year even though a 31 corresponding cash payment may not be received until a later year. Based upon the stated position of the Illinois Department of Revenue under Illinois income tax law, accreted original issue discount on such OID Bonds is subject to taxation as it accretes, even though there may not be a corresponding cash payment until a later year. Owners of OID Bonds should consult their own tax advisors with respect to the state and local tax consequences of original issue discount on such OID Bonds.

Owners of Bonds who dispose of Bonds prior to the stated maturity (whether by sale, redemption or otherwise), purchase Bonds in the initial public offering, but at a price different from the Issue Price or purchase Bonds subsequent to the initial public offering should consult their own tax advisors.

If a Bond is purchased at any time for a price that is less than the Bond’s stated redemption price at maturity or, in the case of an OID Bond, its Issue Price plus accreted original issue discount (the “Revised Issue Price”), the purchaser will be treated as having purchased a Bond with market discount subject to the market discount rules of the Code (unless a statutory de minimis rule applies). Accrued market discount is treated as taxable ordinary income and is recognized when a Bond is disposed of (to the extent such accrued discount does not exceed gain realized) or, at the purchaser’s election, as it accrues. Such treatment would apply to any purchaser who purchases an OID Bond for a price that is less than its Revised Issue Price. The applicability of the market discount rules may adversely affect the liquidity or secondary market price of such Bond. Purchasers should consult their own tax advisors regarding the potential implications of market discount with respect to the Bonds.

An investor may purchase a Bond at a price in excess of its stated principal amount. Such excess is characterized for federal income tax purposes as “bond premium” and must be amortized by an investor on a constant yield basis over the remaining term of the Bond in a manner that takes into account potential call dates and call prices. An investor cannot deduct amortized bond premium relating to a tax-exempt bond. The amortized bond premium is treated as a reduction in the tax- exempt interest received. As bond premium is amortized, it reduces the investor’s basis in the Bond. Investors who purchase a Bond at a premium should consult their own tax advisors regarding the amortization of bond premium and its effect on the Bond’s basis for purposes of computing gain or loss in connection with the sale, exchange, redemption or early retirement of the 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 adversely affect the market value of the Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or whether, if enacted, it would apply to bonds issued prior to enactment. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal tax legislation. Bond Counsel expresses no opinion regarding any pending or proposed federal tax legislation.

The Internal Revenue Service (the “Service”) has an ongoing program of auditing tax-exempt obligations to determine whether, in the view of the Service, interest on such tax-exempt obligations is 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 Bonds. If an audit is commenced, under current procedures the Service may treat the District as a taxpayer and the Bondholders may have no right to participate in such procedure. The commencement of an audit could adversely affect the market value and liquidity of the Bonds until the audit is concluded, regardless of the ultimate outcome.

32 Payments of interest on, and proceeds of the sale, redemption or maturity of, tax-exempt obligations, including the Bonds, are in certain cases required to be reported to the Service. Additionally, backup withholding may apply to any such payments to any Bond owner who fails to provide an accurate Form W-9 Request for Taxpayer Identification Number and Certification, or a substantially identical form, or to any Bond owner who is notified by the Service of a failure to report any interest or dividends required to be shown on federal income tax returns. The reporting and backup withholding requirements do not affect the excludability of such interest from gross income for federal tax purposes.

Interest on the Bonds is not exempt from present State of Illinois income taxes. Ownership of the Bonds may result in other state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such collateral consequences arising with respect to the Bonds. Prospective purchasers of the Bonds should consult their tax advisors regarding the applicability of any such state and local taxes.

QUALIFIED TAX-EXEMPT OBLIGATIONS

Subject to the District’s compliance with certain covenants, in the opinion of Bond Counsel, the Bonds are “qualified tax-exempt obligations” under the small issuer exception provided under Section 265(b)(3) of the Code, which affords banks and certain other financial institutions more favorable treatment of their deduction for interest expense than would otherwise be allowed under Section 265(b)(2) of the Code.

LITIGATION

There is no controversy or 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.

RETIREMENT PLANS

Teacher’s Retirement System of the State of Illinois

The District participates in the Teacher’s Retirement System of the State of Illinois (“TRS”). TRS is a cost-sharing multiple-employer defined benefit pension plan that was created by the Illinois legislature for the benefit of Illinois public school teachers outside the City of Chicago.

The Illinois Pension Code sets the benefit provisions of TRS, which can only be amended by the Illinois General Assembly. The State of Illinois maintains primary responsibility for the funding of the plan, but contributions from participating employers and members are also required. The TRS Board of Trustees is responsible for the System’s administration.

TRS issues a publicly available comprehensive annual financial report that includes financial statements and required supplementary information. The report may be viewed at TRS’s website as follows: http://trs.illinois.gov/subsections/pubs/publications.htm.

See Note 9 to the District’s Comprehensive Annual Financial Report for the fiscal year ended June 30, 2009, attached hereto as Appendix A, for a more complete discussion.

33 Illinois Municipal Retirement Fund

The District also participates in another defined benefit pension plan, the Illinois Municipal Retirement Fund (“IMRF”). IMRF is an agent multiple employer pension plan that acts as a common investment and administrative agent for local governments and school districts in Illinois. The Illinois Pension Code sets the benefit provisions of IMRF, which can only be amended by the Illinois General Assembly.

IMRF issues a publicly available financial report that includes financial statements and required supplementary information. That report may be viewed at IMRF’s website as follows: http://www.imrf.org/pubs/annual_reports/annual_rpts.htm.

See Note 9 to the District’s Comprehensive Annual Financial Report for the fiscal year ended June 30, 2009, attached hereto as Appendix A, for a more complete discussion.

BOND RATING

Moody’s Investors Service, Inc. (“Moody’s”) has assigned its municipal bond rating of “Aaa” to the Bonds. This rating reflects only the view of Moody’s and any explanation of the significance of such rating may only be obtained from Moody’s. Certain information concerning the Bonds and the District not included in this Official Statement was furnished to Moody’s by the District. There is no assurance that the rating will be maintained for any given period of time or that it may not be changed by Moody’s, if, in its judgment, circumstances so warrant. Any downward change in or withdrawal of the rating may have an adverse effect on the market price of the Bonds. Except as may be required by the Undertaking described below under the heading “CONTINUING DISCLOSURE,” neither the District nor the Underwriter undertakes responsibility to bring to the attention of the owners of the Bonds any proposed change in or withdrawal of such rating or to oppose any such revision or withdrawal.

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 Commission under the 1934 Act. The information to be provided on an annual basis, the events that 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.”

The District has not failed to comply in all material respects with each and every undertaking previously entered into by it pursuant to the Rule. A failure by the District to comply with the Undertaking will not constitute a default under the Bond Resolution 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.” A failure by the District to comply with the Undertaking must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer 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. 34

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 so that such entities receive the information by the dates specified in the Undertaking.

“Annual Financial Information” means information of the type contained in the following tables, headings and exhibits of the Final Official Statement:

THE BONDS – Limited Bonds (tables only) FINANCIAL INFORMATION Trend of Equalized Assessed Valuation Tax Rates Tax Extensions and Collections Summary of Outstanding Debt Debt Repayment Schedule Debt Statement (with respect to the District’s debt only) Debt Ratios (with respect to the District’s debt only) SUMMARY OF OPERATING RESULTS SHORT-TERM FINANCING RECORD FUTURE FINANCING SCHOOL DISTRICT FINANCIAL PROFILE (last paragraph only)

“Audited Financial Statements” means the combined financial statements of the District prepared in accordance with generally accepted accounting principles and Government Auditing Standards, issued by the Comptroller General of the United States.

Material Events Disclosure

The District covenants that it will disseminate in a timely manner to the MSRB the disclosure of the occurrence of an Event (as described below) with respect to the Bonds that is material, as materiality is interpreted under the 1934 Act 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 “Events” are:

35

• Principal and interest payment delinquencies • Non-payment related defaults • Unscheduled draws on debt service reserves reflecting financial difficulties • Unscheduled draws on credit enhancements reflecting financial difficulties • Substitution of credit or liquidity providers, or their failure to perform • Adverse tax opinions or events affecting the tax-exempt status of the security • Modifications to the rights of security holders • Bond calls • Defeasances • Release, substitution or sale of property securing repayment of the securities • Rating changes

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 Resolution, 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.

Amendment; Waiver

Notwithstanding any other provision of the Undertaking, the District by resolution 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 material 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

36 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 Bond Resolution. 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 material 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 material 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 material 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 Electronic Municipal Market Access (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.

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 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 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 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 exemption of interest on the Bonds and the “bank-qualified” status of 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. Chapman and Cutler LLP is also acting as Disclosure Counsel to the District.

37 UNDERWRITING

The Bonds were offered for sale by the District at a public, competitive sale on April 19, 2010. The best bid submitted at the sale for the Bonds was submitted by ______(the “Underwriter”). The District awarded the contract for sale of the Bonds to the Underwriter at a price of $______. The Underwriter has represented to the District that the Bonds have been subsequently re-offered to the public initially at the yields or prices set forth on the inside cover to this Official Statement.

FINANCIAL ADVISOR

PMA Securities, Inc. of Naperville, Illinois has been retained as financial advisor (the “Financial Advisor”) in connection with the issuance of the Bonds. In preparing this Official Statement, the Financial Advisor has relied upon the District, and other sources, having access to relevant data to provide accurate information for this Official Statement. To the best of the Financial Advisor’s knowledge, the information contained in this Official Statement is true and accurate. However, the Financial Advisor has not been engaged, nor has it undertaken, to independently verify the accuracy of such information.

The Financial Advisor’s duties, responsibilities, and fees arise solely from that as financial advisor to the District.

THE OFFICIAL STATEMENT

This Official Statement includes the cover page, reverse thereof and the Appendices hereto.

All references to material not purporting to be quoted in full are only summaries of certain provisions thereof and do not purport to summarize or describe all the provisions thereof. Reference is hereby made to such instruments, documents and other materials for the complete provision thereof, copies of which will be furnished upon request to the District.

Accuracy and Completeness of the Official Statement

This Official Statement has been approved for distribution to the Underwriter of the Bonds.

The District’s officials will provide to the original purchaser of the Bonds at the time of delivery of the Bonds, a certificate confirming to the purchaser that, to the best of their knowledge and belief, the Official Statement, with respect to the Bonds, at the time of the sale and delivery of the Bonds, was true and correct in all material respects and did not at any time contain an untrue statement of a material fact or omit to state a material fact required to be stated, where necessary to make the statements, in light of the circumstances under which they were made, not misleading.

/s/ . President, Board of Education Township High School District Number 203 Cook County, Illinois

38 Appendix A

Form of Legal Opinion of Bond Counsel

(THIS PAGE IS INTENTIONALLY LEFT BLANK) PROPOSED FORM OF OPINION OF BOND COUNSEL

[LETTERHEAD OF CHAPMAN AND CUTLER LLP]

[TO BE DATED CLOSING DATE]

We hereby certify that we have examined certified copy of the proceedings (the “Proceedings”) of the Board of Education of Township High School District Number 203, Cook County, Illinois (the “District”), passed preliminary to the issue by the District of its fully registered General Obligation Limited Tax School Bonds, Series 2010 (the “Bonds”), to the amount of $8,430,000, dated May 11, 2010, due serially on December 1 of the years and in the amounts and bearing interest as follows:

2014 $ % 2015 % 2016 % 2017 % 2018 % and we are of the opinion that the Proceedings show lawful authority for said issue under the laws of the State of Illinois now in force.

We further certify that we have examined the form of bond prescribed for said issue and find the same in due form of law, and in our opinion said issue, to the amount named, is valid and legally binding upon the District and is payable from any funds of the District legally available and annually budgeted 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 Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. The amount of said taxes that may be extended to pay the Bonds is, however, limited as provided by the Property Tax Extension Limitation Law of the State of Illinois, as amended (the “Law”). The Law provides that the annual amount of said taxes to be extended to pay the Bonds and all other limited bonds (as defined in the Local Government Debt Reform Act of the State of Illinois, as amended) heretofore and hereafter issued by the District shall not exceed the debt service extension base (as defined in the Law) of the District.

It is our opinion that, subject to the District’s compliance with certain covenants, under present law, interest on the Bonds (i) is excludable from gross income of the owners thereof for federal income tax purposes, (ii) is not included as an item of tax preference in computing the alternative minimum tax for individuals and corporations under the Internal Revenue Code of 1986, as amended (the “Code”), and (iii) is not taken into account in computing adjusted current earnings, which is used as an adjustment in determining the federal alternative minimum tax for certain corporations. Failure to comply with certain of such District covenants could cause interest on the Bonds to be includable in gross income for federal income tax purposes

retroactively to the date of issuance of the Bonds. Ownership of the Bonds may result in other federal tax consequences to certain taxpayers, and we express no opinion regarding any such collateral consequences arising with respect to the Bonds.

It is also our opinion that the Bonds are “qualified tax-exempt obligations” pursuant to Section 265(b)(3) of the Code.

We express no opinion herein as to the accuracy, adequacy or completeness of any information furnished to any person in connection with any offer or sale of the Bonds.

In rendering this opinion, we have relied upon certifications of the District with respect to certain material facts within the District’s knowledge. Our opinion represents our legal judgment based upon our review of the law and the facts that we deem relevant to render such opinion and is not a guarantee of a result. This opinion is given as of the date hereof and we assume no obligation to revise or supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may hereafter occur.

-2-

Appendix B

Comprehensive Annual Financial Report for Fiscal Year Ended June 30, 2009

The comprehensive annual financial report contained in this Appendix B (the “Audit”), including the independent auditor’s report accompanying the Audit, has been prepared by Baker Tilly Virchow Krause, LLP, Oak Brook, Illinois (the “Auditor”), and approved by formal action of the Board of Education of the District. The District has not requested the Auditor to update information contained in the Audit; nor has the District requested that the Auditor consent to the use of the Audit in this Official Statement. Other than as expressly set forth in this Official Statement, the financial information contained in the Audit has not been updated since the date of the Audit. The inclusion of the Audit in this Official Statement in and of itself is not intended to demonstrate the fiscal condition of the District since the date of the Audit. If you have a specific question or inquiry relating to the financial information of the District since the date of the Audit, you should contact Donald R. Goers, Associate Superintendent of the District.

(THIS PAGE IS INTENTIONALLY LEFT BLANK) COMPREHENSIVE ANNUAL FINANCIAL REPORT

OF

NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203

NORTHFIELD, IL

FOR THE FISCAL YEAR ENDED JUNE 30,2009

Official Issuing Report Donald R. Goers, Associate Superintendent

Devartment Issuing Report Business Office This page has been intentionally left blank. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 TABLE OF CONTENTS FOR THE FISCAL YEAR ENDED JUNE 30,2009

Pane($ Introductory Section Transmittal Letter i - xi ASBO Certificate xii.. . GFOA Certificate Xlll Organizational Chart xiv List of Principal Officials xv Financial Section Independent Auditor's Report Required Supplementary Information Management's Discussion and Analysis (MD&A) - Unaudited Basic Financial Statements Government-Wide Financial Statements Statement of Net Assets Statement of Activities Fund Financial Statements Balance Sheet - Governmental Funds Reconciliation of the Governmental Funds - Balance Sheet to the Statement of Net Assets Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Reconciliation of the Governmental Funds - Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities Statement of Fiduciary Assets and Liabilities - Agency Fund Notes to Basic Financial Statements Required Supplementary Information Illinois Municipal Retirement Fund - Schedule of Employer's Contributions and Analysis of Funding Progress Statement of Funding Progress for Retiree's Health Plan This page has been intentionally left blank. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 TABLE OF CONTENTS FOR THE FISCAL YEAR ENDED JUNE 30,2009

Paaefs) Required Supplementary Information - (Continued) General and Maior Special Revenue Funds - Schedule of Revenues. Expenditures and Changes- in Fund Balances - Budget to Actual General (Educational) Fund Operations and Maintenance Fund Transportation Fund Municipal Retirement/Social Security Fund Working Cash Fund Notes to Required Supplementary Information Supplementary Information Major Debt Service and Maior Capital Proiects Funds - Schedule of Revenues, Expenditures and Changes- in Fund Balances - Budget to Actual Debt Service Fund Capital Projects Fund Fire Prevention and Life Safety Fund Statement of Changes in Assets and Liabilities - Agency Funds Statistical Section Net Assets by Component Changes in Net Assets Fund Balances of Governmental Funds Governmental Funds Revenues Governmental Funds Expenditures and Debt Service Ratio Other Financing Sources and Uses and Net Change in Fund Balances Assessed Valuation and Estimated Actual Value of Taxable Property Property Tax Rates - All Direct and Overlapping Governments Principal Property Taxpayers in the District Property Tax Levies and Collections Ratio of Outstanding Debt by Type Ratios of General Bonded Debt Outstanding Computation of Direct and Overlapping Debt Legal Debt Margin Information Demographic and Economic Statistics Principal Employers This page has been intentionally leff blank. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 TABLE OF CONTENTS FOR THE FISCAL YEAR ENDED JUNE 30,2009

Page&) Number of Employees by Type 99 - 100 Operating Indicators by Function 101 - 102 School Building Information 103 - 104 Miscellaneous Statistics 105 This page has been infentionally left blank. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203

December 8, 2009

President and Members of the Board of Education New Trier Township High School District 203 Northfield, Illinois 60093

The Comprehensive Annual Financial Report of New Trier Township High School District 203, Cook County, Illinois, as of and for the year ended June 30, 2009, is submitted herewith. The annual audit was completed on November 6, 2009, and a report was subsequently issued. Responsibility for the accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures, rests with the District. We believe the data as presented are accurate in all material aspects, and are reported in a manner designed to fairly set forth the financial position and results of operations of the District as shown by the disclosure of all financial activity of its various funds. All disclosures necessary for the reader to gain an understanding of the District's financial status have been incorporated in the report. Additional discussion and analysis of the financial performance of New Trier Township High School are included in the Management's Discussion and Analysis. This section begins on page 3.

The Comprehensive Annual Financial Report is presented in three sections: Introductory, Financial, and Statistical. The introductory section includes this transmittal letter, the District's organizational chart, and a list of principal officials. The financial section includes the Independent Auditor's Report, Management's Discussion and Analysis, Basic Financial Statements, Notes to the Financial Statements and the General and Major Special Revenue Funds, as well as the auditor's report on these items. The statistical section includes selected financial and demographic information, generally presented on a multi-year basis.

History On April 4,1899, the voters of New Trier Township approved the establishment of a high school district by a vote of 651 to 369. The total township population at that time was approximately 5.000 persons. The Board held its first meeting on May 19,1899, in the Winnetka home of Merritt Star.

For the next 20 months, the Board focused on building a school and hiring a staff. New Trier High School opened its doors on February 1,1901, to 76 students under the direction of Frank L. Smart, the school's first principal. The first two graduates of New Trier received their diplomas in June 1901, having begun their instruction at Evanston Township High School. The school grew quickly over the next decade. In September 1911,the school enrolled over 450 students. The physical plant grew as well with additions to the original building in 1907 and 1912. The 1912 addition included what was the first full-sized indoor swimming pool in an American high school. Further additions or major renovations to the Winnetka facility were completed in 1923, 1928, 1931, 1934, 1950, 1957 and 1973. Additional land was purchased in 1912 and 1921 to increase the Winnetka Campus acreage to its present 27 acres. Duke Childs Field was purchased in 1978 after completion of a long-term lease to provide additional athletic fields. In 2001, in a joint effort with the Northfield Park District, nearly 10 acres of land were purchased in Northfield at the corner of Waukegan and Willow Roads for the development of additional athletic fields.

-- - -

7 I-fupp Road Northfield,IIA(i00Y3-3411 * pllone 847.784.3408 Fa.. 847.784.31 15 a gocrsd@nc~vtric1~Iil2.il.us The New Trier High School student advisement system was instituted in 1917 and obtained its present nationally recognized form in 1923. This unique guidance program provides a small school atmosphere within a large school by dividing the student population into single-gender adviser rooms of approximately 25 students each. For the first 25 minutes of every school day, students meet in their "adviser rooms" with their faculty adviser, who serves as academic and guidance counselor as well as a vital link to each advisee's parents and teachers.

In the 1930~~New Trier, along with Evanston Township High School, participated in the landmark Eight-year Study by the Carnegie Foundation and the General Education Board, to determine the best methods of preparing students for college. New Trier also continued to grow, reaching an enrollment of 2,188 in 1933. World War 11 caused New Trier's enrollment to dip as its boys went off to war. A total of 126 of those young men never returned, just as 20 New Trier students had perished in World War 1. The students remaining at New Trier conducted war bond drives to purchase a military ambulance, a &I7 and a B-29 bomber. Years later, as a memorial to those who served in the armed forces, New Trier Township paid for the renovation of the school's library as part of a larger renovation project at the Winnetka Campus in 1957.

The baby boom and suburban migration of the late 1940s and 1950s caused New Trier's enrollment to skyrocket. Eventually, this growth caused New Trier to build a second school, New Trier West High School, located in Northfield. West opened in the fall of 1965, although construction had not yet been completed. Enrollment peaked at 6,554 during the 1972-73 school year. A precipitous decline in enrollment caused New Trier West to be closed as a four-year school in the spring of 1981. West remained a freshman center until 1985. New Trier's enrollment dipped to a low of 2,710 in 1990-91 but increased again by over 54% by 2007- 08. To accommodate the growing student population, the district returned to a two-campus organization in the 2001-02 school year, with the former New Trier West re-opening as the Northfield Campus for freshmen and the Winnetka Campus housing sophomores, juniors and seniors.

Demonstrating alumni loyalty, numerous New Trier graduates returned for the school's Centennial birthday celebration in 2000-01, including U.S. Secretary of Defense Donald Rumsfeld, U.S. Representative Mark Kirk, attorneylauthor Scott Turow, financial analyst Terry Savage, business leader Arthur C. Nielsen Jr., PBS affiliate CEO Sharon Percy Rockefeller, ABC News correspondent Ann Compton, and national genetics researcher Dr. Dennis J. Selkoe. Other notable alumni who have returned to their alma mater in recent years include actors Charlton Heston, Hugh OIBrian, and Ann-Margaret, former US. Senator Charles Percy, and 1988 Nobel Prize Winner in Physics Jack Steinberger.

New Trier continues to welcome back alumni for special events including reunions, tours, classroom visits and special programs for students and staff members. Since 2004, New Trier has hosted an annual Literary Festival, organized by the English Deparhnent and underwritten by the Educational Foundation. The Festival has featured numerous alumni authors, playwrights, directors and performance artists including Greg Allen, Burt Levy, Jennifer Schuessler, Sheldon Siegel, Sarah Ruhl and Scott Turow. Also, alumni Charlton Heston, Steven Katz, Ben Peller, Nancy Pick and Oscar nominee Virginia Madsen have, in past years, visited the campus to participate in programs with students.

Alumnus Alan Rottman made a $25,000 cash gift to the Educational Foundation in November 2004, the largest cash gift the Foundation has received. Mr. Rottman also donated a dinosaur fossil to New Trier, which has been displayed at the Northfield Campus and used in numerous science classrooms. To improve communications with alumni and to help them reconnect with their alma mater and each other, in 2005, New Trier premiered its online community, www.newtrieralumni.org. Since then, more than 4,000 alumni have registered to use the site to reconnect with other alumni, post photos, and request information about former teachers and classmates. This fall, eight graduating classes returned to the area for their class reunions, with many alumni attending football games and taking advantage of campus tours sponsored by the Alumni Office. The motto, "To commit minds to inquiry, hearts to compassion and lives to the service of humanity," embodies the philosophy of New Trier Township High School.

In the 2008-09 school year, student enrollment reached 4,151 students. Current students matriculate from six elementary districts serving the North Shore suburban communities of Glencoe, Kenilworth, Northfield, Wilmette, Winnetka and portions of Glenview and Northbrook - communities tliat reflect a tradition of support for academic achievement. Approximately 98% of graduates continue on to college. The average ACT score for the class of 2009 was 27.4, among the highest average score for any public high school in the country and the highest of non-magnet schools in the state. The class of 2009 included 14 National Merit Scholars, 3 National Hispanic Scholars, 29 National Merit Finalists, 32 National Merit Semi-finalists, and 75 students who received National Merit Letters of Commendation.

The Prairie State Achievement Exam (PSAE) is the state-required test that all juniors must take in order to fill state and national requirements for the No Child Left Behind (NCLB) legislation. The PSAE is comprised of the ACT, ACT Work Keys, and a state-developed test in Science; all test scores in Math and Reading (ACT and Work Keys) are combined to create a scale score for each student in those two subject areas, and then student achievement is measured against state standards. Student scores are placed in one of four categories: Exceeds Standards, Meets Standards, Below Standards, or Academic Warning. Schools must test a minimum of 95% of juniors overall and 95% of students in each subgroup of over 40 students (such as AsianIPacific islander and Students with IEPs).

For 2008-09, New Trier High School met the requirements of the federal and state NCLB legislation in all categories, making Adequate Yearly Progress (AYP) in the number of students tested and in the percentage of students who met or exceeded standards in each subject area and in each subgroup. In fact, New Trier students far exceeded the minimum requirements in all areas. For instance, 91.2% of students met or exceeded standards in reading, and 92.9% of students met or exceeded standards in math. Over 99.7% of eligible juniors were tested.

Current initiatives The New Trier learning community is constantly seeking to grow and develop. Current major initiatives in academics, facilities, and technology are being implemented.

Academically, the New Trier staff continues to focus on literacy development, curriculum development, strategic planning efforts, effective integration of technology into the curriculum, and promotion of a safe and supportive learning environment. Strategic planning goals and action plans focus on the social, emotional, physical, and intellectual development of every student.

Our approach to implementing programs for improving teaching and learning continues to follow the principles of effective staff development created by the National Staff Development Council. Our programs are sustained, collaborative, data-driven, research-based, and student-focused. We offer over 50 courses for staff on topics that include "Understanding AdolescentsJJ, "Developing Critical Thinking through Writing", "Enhancing a Culture of lnquiry in Your Classroom", and "lncreasing Reading Skills in Special Education Classrooms". Additionally, the lntegrated Global Studies School (IGSS) is in its first year of implementation. This program is a school-within-a-school developed for self-directed students who are eager to pursue an interdisciplinary and experiential curriculum. Even though lGSS is in its early stages, it has already received great reviews from both students and parents for providing a learning environment that allows students to flourish who might not have done so in our standard program.

Curriculum development is the focus of course-level teams that meet during common planning time, late start days, after school, on half-days, and in the summer. These course-level teams focus on development of essential questions and themes that guide curriculum development and align curricular goals with the selection of texts and supplemental materials. While the teachers on these course-level teams do not create a scripted curriculum, they do design common goals and common experiences for students.

A school-wide focus on creating a safe and respectful learning environment has led to the growth .of programs such as Names Can Really Hurt Us, Building Allies, Ethical Conduct and Global Citizenship, Service Learning, and Diversity. A survey of students conducted in 2004, 2005, 2006, and 2007 helped student and staff organizations to develop goals and establish priorities. A follow-up student survey is planned for spring . 2010. A staff climate survey was administered in spring 2006 and 2007. Survey results have helped refine the school's approach to establishing a safe and respectfirl learning environment for all students. In 2008, the Equity Team was established to promote work related to diversity and cultural competencies among staff and students. The efforts of the Ethical Conduct and Global Citizenship Committee have focused on three groups: students, staff and parents. For parents, the committee has worked extensively with the Parents Association and Family ~wareness~etwoik to bring nationally known speakers to the- school to address topics related to ethical conduct. A student steering committee has been formed and is working to establish a se; of student programs in this area. One focus-for the staff portion of the program will be on teaching social and emotional skills related to resiliency. Finally, service-learning programs have been incorporated into the curriculum of many courses and as important experiences in the adviser program.

Several areas of the Strategic Plan related to the social and emotional health of students have been integrated within the day-to-day operation of the school. One Strategic Planning recommendation called for the establishment of a Transition Coordinator. The purpose of this position is to facilitate the transition from gth grade to high school by serving as a resource for junior high students and parents. This position is now entering its fourth year and has received very positive feedback from the community. Another recommendation was to establish a Bridges Program to facilitate the transition of students who have been severely ill or hospitalized back to full days of school attendance. This program serves as a valuable resource for students.

Five years ago, the Physical Plant Services Department completed a total Life Safety review of the District's buildings in accordance with state code. As a result, the State Board of Education approved nearly $12 million of HealthlLife Safety modifications and improvements to be implemented over a four-year period. These projects were funded through the sale of Life Safety Bonds in 2004 and 2006, and have all been completed.

In conjunction with the sale of these bonds, Moody's lnvestors Service reaffirmed the Aaa rating to New Trier Township High School District 203. According to the news release, the Aaa, Moody's highest quality rating, incorporates the District's mature and affluent residential tax base with a favorable location near the Chicago metro area; strong financial position characterized by ample reserves and timely approval of a new operating levy; and average debt burden with limited future borrowing plans. The District has a history of very strong financial operations, a reflection of its prudent financial management and foresight. Moody's believes that the District's finances will remain strong for the foreseeable future due to the $13 million in additional revenues generated from its increased levy and conservative budgeting. The Aaa rating from Moody's has resulted in lower debt service cost to the District's taxpayers and contributed in part to the $430,000 savings in interest the District achieved by issuing Refunding Bonds in 2005. In addition, the District's Facilities Committee was reinstituted during 2006-07 to complete a survey of the facilities at both campuses to update the Capital Facilities Plan and to develop a process to investigate proposed and envisioned projects. In the summer of 2007, the Board of Education hired the architectural firm of Perkins + Will to assist in the development of a long-range facilities plan. That work continued during the next two years, with a long-range facilities plan being approved by the Board of Education in April 2009. A plan for significant renovations and new construction at the Winnetka Campus is being presented. to the Board in the fall of 2009, which, if approved and funded, is scheduled to begin in summer 2010 and to be completed in Au+st 2012.

Technology continues to move at a fast pace at New Trier. Over the past three years, all major legacy systems have been upgraded, including the school's network, e-mail system, phone system, student information system, document management system, and this year, the financial management system. New Trier is in a unique position compared to most institutions; these upgraded systems that use current technology are more reliable, less expensive to operate, and provide the functionality needed to efficiently manage the district and provide instruction.

The use of tablet laptops by faculty has increased, with the entire faculty now using tablets as their primary computer. The tablet computers combine the portability of a typical laptop with the ability to annotate content, and are used daily by many teachers as a way to enhance instruction. Classrooms throughout both campuses are using wireless projectors, allowing teachers to project directly from their tablet without connecting via a wire to the projectors. This allows teachers to move freely about the classroom as they instruct with their tablets. Students continue to use tablets in a number of classrooms, and a student laptop program is encouraging students to bring laptop computers from home and connect to the network.

Future lnitiatives New Trier staff identified several key initiatives for current and future focus: a facilities project, strategic planning initiatives, increased opportunities for student leadership and participation, staff development that focuses on student academic and personal growth, and new technologies for teaching and learning.

The facilities initiative, noted above, will be implemented in the summer of 2010 if funding is secured through a capital referendum. The project includes demolition of some of the oldest and most deficient buildings on campus: the 1912 Cafeteria, 1925 Boiler Plant, 1928 Gates Gym complex, 1931 Tech Arts Building, and 1950 Music Building. These buildings would be replaced with a 315,000 square foot addition on the west side of the campus, replacing the demolished curricular spaces with classrooms suited to contemporary teaching and with integrated technology capacity. The efficient use of land on the west side would also allow replacement of many outdated and insufficiently sized classrooms, the library, student activities rooms, and multimedia space. On the east side, the Gates Gym would be replaced with a new gym and locker rooms, field house, fitness areas, and fifteen new classrooms for math, English, social studies and health. The central part of the campus would remain, including the iconic Tower Building, North Building (with the pool), Gafhey Auditorium, and 1974 gym addition; renovations in the Tower and North Buildings would allow the addition of three new science labs and two science classrooms and the re-purposing of the smallest, least usable classrooms to meet other needs.

During 2009-2010, the B Building of the Northfield Campus will be renovated and returned to school use. Leased by Stepan Chemical for over 20 years, the B Building will be returned to classroom use, and will incorporate campus offices, a student commons, Physical Plant Services space, the New Trier Extension program, and possibly a daycare facility for use by staff children. Moving classrooms to the B Building allows renovation of spaces in the D and F Buildings to add a new science lab, dance studio, and expansion of art spaces. In June 2007, the State Board of Education approved new HealthlLife Safety Amendments for each campus totaling $7.8 million, some of which are still being implemented. Projects under these amendments are security enhancements, masonry repairs, roof replacements, and window replacements. These projects are being evaluated in conjunction with the larger facilities plans and are scheduled for completion by 2011.

In addition to the major facilities initiatives at the Northfield and Winnetka campuses, various programs are currently under development, including a Personal Exploration Plan (PEP) for students; an evaluation of the Strategic Plan in this last year of its implementation; the use of time and the implications for staff collaboration and the number of days in the school year; and a school within the larger school called Integrated Global Studies. The Board approved a proposal to eliminate use of class rank or deciles in student records and to continue examining how we can best present our students to colleges and un?versities. Homework loads and policies are the subject of ongoing discussions.

In the spirit of Strategic Planning, several new initiatives will be explored in 2009-10. To promote the health and safety of students with severe food allergies, a committee of students, parents and staff members will review our current health policies and procedures and make recommendations for any changes that seem warranted. A committee of students, parents and staff members will also be formed to discuss the effectiveness of communication between students, parents and teachers regarding student performance. Finally, staff and administrators will conduct a review of our current practices and procedures to ensure that they meet the requirements of Response to Intervention. This review will lead to a more systematic approach to addressing the needs of struggling students.

Staff development during 2009-10 will focus on the four major elements from "Characteristics of Professional Practice," a document developed several years ago to provide a framework for discussion about teaching and leaning at New Trier. Staff development programs offered throughout the year will be organized around those four themes, and will complement teacher goal-setting and individual growth plans. Additionally, the Professional Development Committee will create a comprehensive plan that will develop various employee groups over the various stages of their professional lives at New Trier.

Staff lnstitute Days for 2009-2010 will provide opportunities for us to look carefully at how to define success for our students and our school. The wide-ranging areas under discussion include diversity, critical thinking, reading, writing, service, resilience, global awareness, ethics, and ability grouping. Work in each of these areas will develop as part of a two-year plan in which we are considering what measures of success we would like to use for our students in addition to test scores.

The Technology Planning Committee, composed of students, teachers, administrators and Board members continues to focus on the integration of technology into the classroom. This year, the plan is to expand the -technology professional development program. lnteractive whiteboards have been installed in a number of classrooms, allowing students and teachers to directly interact with material that is presented from the teacher's computer. The Technology Department is also installing a data warehouse, allowing instructional leaders to have a longitudinal view of student data in order to make informed decisions about curriculum and instruction. Later this year, the Technology Planning Committee will make recommendations about the use of instructional technology to be implemented district-wide during the next school year.

New Trier is now approaching the end of an upward enrollment trend that will continue, albeit at a slower pace, for several additional years before leveling out at around 4,200 students. This growth will require New Trier to continue to assess its programs to ensure that the needs of students and the community are being met in a most effective and efficient manner. Economic Condition & Outlook New Trier Township High School is located within Cook County, Illinois, along the north shore of Lake Michigan. Appreciation of the value of homes has been significant. As a result, the total equalized assessed valuation, in excess of $1 million per student, ranks the District in the upper 5% of school districts in the State of lllinois in terms of taxable wealth per pupil.

The lllinois Legislature continues to consider ways to reform school funding in the state. The lllinois system for distributing general state aid has not kept pace with cost increases and demographic changes, which has resulted in inequities and inadequate state support for many school districts. New Trier supports a position that will help preserve access to funding and provide opportunities for the students within the District.

The Property Tax Extension Limitation Act (more commonly known as "Tax Cap") was part of Public Act 89- I, effective February 12, 1995 with the 1994 Levy. This Act imposes a mandatory property tax limitation on taxing districts located in Cook County. (The tax cap was initially enacted in the counties contiguous to Cook County effective October 1, 1991 with the 1991 Levy). More specifically, the act limits the increase in property tax extensions to 5% or the percent increase in the previous calendar year's national Consumer Price index (CPI), whichever is less. The voters in a referendum must approve increases above 5 percent or the CPl. Excluded from this legislation are general obligation bonds sold prior to February 12, 1995 (October 1,1991 in the collar counties) or approved by a referendum. The act also permits adjustments over the limitation proportional to new property added to the tax base. The tax cap does not make adjustments for growth in enrollment, mandated life safety repairs, or extensive capital projects, such as reopening the Northfield Campus or renovations to the Winnetka Campus buildings.

As New Trier has developed long-range financial projections, it has considered enrollment projections, staffing plans, program evaluation and needs, special education services, technology and building maintenance on both a short and long-term basis. These factors have been evaluated with an overall goal to maintain the existing quality of educational programs, continue with the current initiatives, and make program enhancements where educationally sound. The growth in enrollment, the re-opening of the Northfield Campus and the limitations created by the tax cap had a significant impact on the District's finances and resulted in a structural deficit in excess of $6 million in each of the two fiscal years prior to 2003-04. Through the District's long range financial forecasting, the Board and administration had planned for this structural deficit. These long-range financial plans also indicated that the structural deficit would have grown (exceeding $10 million in 2003-04) and the District's fund balances would have been depleted during the 2004-2005 school year, unless significant measures were taken. The Board and staff evaluated programs closely and adopted a number of additional cost containment measures. Further program cuts were also identified.

It became clear that given the size of the structural deficit and the desire to maintain the existing quality of educational programs, a referendum would be required. The amount requested in the April 2003 referendum was 41 cents, which would generate approximately $13.25 million in additional tax revenues annually. Through the support of the New Trier community, the referendum was approved 61 percent to 39 percent, and the District obtained the financial security and stability that has allowed the professional staff to continue to provide outstanding curricular and co-curricular programs. Because of the success of the referendum, New Trier is able to maintain its present programs for our growing student enrollment, programs in which students are achieving at levels among the most outstanding in the nation. Future students will benefit from the same exceptional quality of education that their older brothers and sisters and previous generations received at New Trier.

As the District looks forward through the balance of this decade, the District's financial position remains strong and on target with the Board of Education's commitment made in concert with the successful referendum in April 2003. The graph, provided below, illustrates the District's actual and projected revenues, expenditures and fund balances from FY 2006-07 through FY 2014-15.

- vii - Beginning in FY 2009-10, projected revenues and expenditures track closely through M 2014-15. During this time period, revenues are projected to grow at an annual rate of 2.5 percent, while growth in expenditures are projected at 3.8 percent per annum based on the District's current assumptions.

The bottom two lines in the graph illustrate the District's Fund Balance (actual and projected) and a dollar amount representing 4.5 months of expenditures. The 4.5 months of expenditures is significant because it represents the Board's referendum commitment to maintain a minimum of 4.5 months in reserve for at least five years as recommended by the District's auditors. As illustrated in the graph, the District has been successful in not only meeting this five-year commitment, but also extending these minimum required reserve levels several years hrther into the future. To stay on this financial course requires that continuous efforts are made to implement cost containment measures, to explore opportunities to improve cost efficiencies and to control expenses within the financial resources that are available to the District. The Board and Administration are dedicated to excellence in education, seeking to balance educational needs with sound fiscal practices.

Historical and Projected Revenues, Expenditures and Fund Balances Operating Funds and Working Cash FYO2 - FYI 5

2006-07 2007-08 2008-09 2008-10 2010-1 1 201 1-12 2012.13 2013-14 2014-13 Fiscal Years Remrtina Entitv The District includes all funds and account groups that are controlled by or dependent on the Board of Education of the District, as determined on a basis of financial accountability. The District does not have such financial accountability over any other entity and thus does not include any other entity as a component unit in this report. Additionally, the District is an independent entity, not includable as a component unit of any other reporting entity.

Accounting Systems and Budgetary Control The financial statements have been prepared in accordance with Generally Accepted Accounting Principles, which are appropriate to local government units of this type. The presentation allows the reader to obtain an overview of the District's financial operations by viewing the combined statements in the front section of this report. Detailed representations of the combiied statekents are available throughout the remainder of the report. All figures used in the following information were obtained or derived from these financial statements, attached herewith.

The District administration is responsible for establishing and maintaining internal controls designed to ensure that the assets of the District are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with Generally Accepted Accounting Principles. The internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and the valuation of costs and benefits requires estimates and judgments by management.

As part of the audit of the District, the District's independent auditor considered the District's internal controls to determine auditing procedures for the purpose of expressing an opinion on the financial statements. The auditor also performed tests of the District's compliance with certain provisions of laws, regulations, contracts and grants. The results of the audit for the fiscal year ended June 30, 2009, disclosed no instances of material noncompliance of certain provisions of laws, regulations, contracts, and grants.

The District maintains sound budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Dist rict's Board of Education. Activities of the General (Educational) Fund, Operation and Maintenance Fund, Transportation Fund, Municipal Retirement/Social Security Fund, Working Cash Fund, Debt Service Fund, Capital Projects Fund, and Fire Prevention 8 Life Safety Fund are included in the annual appropriate budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriate amount) is established by function within an individual fund. The District also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts lapse at year-end. As demonstrated by the statements and schedules included in the financial section of this report, the District continues to meet its responsibility for sound financial management.

Cash Management The District invests up to 100 percent of available cash, timing investment maturities to actual cash needs. In addition, all checking accounts are of interest bearing types. Investments are maintained in deposits with financial institutions, which include amounts held in demand accounts, savings accounts and non-negotiable certificates of deposit, repurchase agreements and U.S. Treasury obligations. Certificates of deposit beyond FDlC insurance limits are privately insured or are collateralized with U.S. Treasury Securities only. The District maintains investment relationships with several major local and Chicago area banks and statewide investment pools. As of June 30. 2009, the bank balance of the District's deposits with financial institutions totaled $75,781,870; of this amount $1,110,343 was uncollateralized and uninsured. This was a temporary situation and the total bank balance deposits in excess of FDlC insurable limits are now either collateralized or insured. Effective July I, 2003, the School Treasurer assumed all responsibilities held by the Township School Treasurer as the voters overwhelmingly supported the proposition to abolish the Offices of the Township School Trustees and the Township School Treasurer. The School Treasurer, or his designee appointed by the Board of Education, authorizes all investments and cash transactions. lnvestment strategies are structured to obtain the best yield for all invested funds while meeting the District's goals of safety and .liquidity. The District does not bid out its banking needs on an annual basis, but secures investment bids prior to investing funds. Request for Proposals for banking services were obtained in December 2001 resulting in a significant reduction in the fees assessed and an increase in the interest earnings paid on the demand accounts. Banking Services are evaluated on a less formal basis annually. The District earned interest revenue totaling $1,807,1m on all investments for the year ended June 30, 2009.

Risk Management The District is a member of the Collective Liability lnsurance Cooperative (CLlC). CLlC is a school insurance cooperative that provides a very comprehensive insurance contract combined with service and competitive pricing. Coverage includes property, casualty, general liability, excess liability, vehicle and professional liability insurance. Arthur J. Gallagher, Cambridge Integrated Services Group and Gallagher Bassett provide individually tailored service to the cooperative.

The District also is a member of the CLlC workers compensation insurance pool. Both CLlC pools are controlled by a Board of Directors, which is composed of representatives designated by the member school districts.

The District is self-insured for the employees1 medical and dental insurance. An independent company administers benefit claims for the District's self-insurance plans. The District reviews its insurance programs annually.

Capital Assets The capital assets of the District are those assets used in the performance of general governmental functions. As of June 30, 2009, the capital assets of the District amounted to $118,311,232. This amount represents the actual and historical original cost of the assets and is considerably less than their present replacement value. The District utilizes the services of an outside appraisal service for the appraisal, control, and inventory of capital assets. Industrial Appraisal Company completed a complete appraisal of all the District's capital assets in October 2001. Annual appraisals are used for updating of replacement values for insurance purposes with the District providing historical cost information. The District maintains outside third-party insurance coverage to protect the District from fire, theft and severe financial losses.

Independent Audit The School Code of lllinois and the District's adopted policy require an annual audit of the books of accounts, financial records, and transactions of all funds of the District. Independent certified public accountants that are selected by the District's Board of Education perform the audit. This requirement has been complied with and the accountants' report has been included in this report. Awards The Association of School Business Officials International (ASBO) awarded a Certificate of Excellence in Financial Reporting and the Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2008. Both the Certificate of Excellence and the Certificate of Achievement are prestigious national awards recognizing conformance with the highest standards for preparation of state and local government reports.

In order to be awarded the AS60 Certificate of Excellence or the GFOA Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report, whose contents conform to program standards. The CAR must satisfy both Generally Accepted Accounting Principles and applicable legal requirements.

The District has received the ASBO Certificate of Excellence for the last seven consecutive years and the GFOA Certificate of Achievement For the last six consecutive years. We believe the current report continues to conform to both the ASBO Certificate of Excellence and the GFOA Certificate of Achievement program requirements, and are submitting it to both ASBO and GFOA.

Closin~Statement It is our belief that this Comprehensive Annual Financial Report will provide the District's management, local citizens and outside investors with a most meaningful financial presentation. We hope that all readers of this Report will obtain a clear and concise understanding of the District's financial condition as of June 30, 2009.

Acknowled yent We wish to thank the members of the Board of Education for their interest and support in planning and conducting the financial operations of the District.

The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated services of all the members of the Busirtess ORce who assisted in the closing of the District's financial records and the preparation of this report.

Respectfully submitted,

,- Linda L. Yonke \I Donald R ~oers/ Superintendent Associate Superintendent This page has been intentionally left blank. SCHOOL BUSIN Ess INTERNATIONAL

This Cemficate of Bxcellence in Financial Reporting is to

NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203

For its Comprehensive Annual Financial Report (CAFR) For the Fiscal Year Ended June 30,2008

Upon recommendation of the Association's Panel of Review which has judged that the Report substantially conforms to principles and standards of ASBO's Certificate of Excellence Program'

President Executive Director This page has been infenfionally leff blank. Certificate of Achievement for Excellence

Reporting Presented to New Trier Township High School District 203 Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30,2008

A Certificate of Achievement for Excellence in Financial Reportjng is presented by the Government Finance Officers Association ofthe United SWes and Canada to govemmcnt units and public employee rehment systems whose comprehensive annual fi~l~tncid reports (CAFRs) achieve the highest: standards in goycment accounting and financial reporting.

Executive Director This page has been in fen fionally leff blank. Board of Education Administrative Assignments and Staff Reporting Relationships 2008-2009

Student Performing Activities Coordinators Coordinators

NC = Northfield Campus WC = Winnetka Campus July 1,2008 Communications/rm This page has been infentionally leff blank. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 Cook County 7 Happ Road Northfield, 1L 60093

Comprehensive Annual Financial Report Year Ended June 30, 2009

List of Principal Officials Term Board of Education Expires

James B. Koch President Wendy M. Serrino Vice-President Carol F. Ducommun Member Alan R. Dolinko Member F. Malcolm "Mac" Harris Member Robert A. Merrick Member John Myefski Member

District Administration

Linda L. Yonke, Ed.D...... Superintendent Donald R. Goers ...... Associate Superintendent Jan M. Borja ...... Principal Northfield Campus Laurel L. Burman ...... Director of Special Education Nicole ~izon...... Director of Communications Timothy A. Dohrer, Ph.D...... Principal Winnetka Campus Timothy Hayes ...... Ass Superintendent for Student Services Christopher T. Johnson ...... Die of Technology John J. Neiweem ...... Dieo of Physical Plant Services Paul J. Sally ...... AssSuperintendent for Curriculum and instruction George H. Sanders ...... Director of Human Resources

Official lssuing Report

Donald R. Goers Associate Superintendent

Department lssuing Report

Business Office This page has been in fentionally left biank. 9BAKER TILLY

Baker Tilly Virchow Krause, LLP 1301 W 22nd St, Ste 400 Oak Brook, IL 60523-3389 te1630 990 3131 fax 630 990 0039 bakertii1y.com INDEPENDENT AUDITOR'S REPORT

To the Board of Education New Trier Township High School District 203 7 Happ Road Northfield, IL 60093

We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of New Trier Township High School District 203, as of and for the year ended June 30, 2009, which collectively comprise New Trier Township High School District 203's basic financial statements as listed in the table of contents. These financial statements are the responsibility of New Trier Township High School District 203's management. Our responsibility is to express opinions on these financial statements based on our audit. The prior year summarized comparative information included in the Governmental Funds Balance Sheet and the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances has been derived from New Trier Township High School District 203's 2008 financial statements. In our report dated December 2, 2008, we expressed unqualified opinions on the respective financial statements of the governmental activities, each major fund, and the aggregate remaining fund information.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditinq Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of New Trier Township High School District 203 as of June 30, 2009, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditinq Standards, we have also issued a report dated December 8, 2009 on our consideration of New Trier Township High School District 203's internal control aver financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting and compliance. That report is an integral part of an audit performed in accordance with Government Auditins Standards and should be considered in assessing the results of our audit.

INTERNATIONAL Board of Education New Trier Township High School District 203

The required supplementary information, as listed in the table of contents, is not a required part of the basic financial statements, but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise New Trier Township High School District 203's basic financial statements. The financial information listed as supplementary information in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. The 2009 supplementary information has been subjected to the auditing procedures applied to the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements for the year ended June 30, 2009, taken as a whole. We also have previously audited, in accordance with auditing standards generally accepted in the United States, New Trier Township High School District 203's basic financial statements for the year ended June 30, 2008, which are not presented with the accompanying financial statements. In our report dated December 2, 2008, we expressed unqualified opinions on the respective financial statements of the governmental activities, each major fund, and the aggregate remaining fund information. In our opinion, the 2008 supplementary information is fairly stated in all material respects in relation to the basic financial statements for the year ended June 30, 2008, taken as a whole.

The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them.

Oak Brook, Illinois December 8,2009 New Trier Township High School District 203 Management's Discussion and Analysis - Unaudited For the Year Ended June 30,2009

The discussion and analysis of New Trier School District 203's (the District) financial performance provides an overall review of the District's financial activities for the year ended June 30, 2009. The management of the District encourages readers to consider the information presented herein in conjunction with the basic financial statements to enhance their understanding of the District's financial performance. Certain comparative information between the current year and the prior is required to be presented in the Management's Discussion and Analysis (the "MD&AW).

Financial Highlights

The General (Educational) Fund had $83.7 million in revenues and other financing sources and $78.4 million in expenditures. This excess of revenues over expenditures and other financing sources of $5.3 million increased the fund balance from $38.6 million to $43.9 million in FY 2009. The $5.3 million increase in fund balance exceeded the $2.2 million projected in the budget due to a $0.7 million positive variance of actual revenues to budget and a $2.4 million positive variance of actual expenditures to budget. The sources of additional revenue are state and federal grants. The budget was under expended primarily in salaries, benefits and special education tuition. In addition, the contingency of $0.4 million was not used.

In the Operations and Maintenance Fund, the District had $7.4 million in revenue and other financing sources and $7.4 million in expenditures, creating a small increase in fund balance of $46,500. Actual results improved compared with budget in which a reduction in fund balance of nearly $2.4 million was projected. In FY 2009, actual revenues were under budget by nearly $1.2 million due to a reclassification of Corporate Personal Property Replacement Taxes pursuant to changes to the Illinois Program Accounting Manual. The budget was under-expended by $2.8 million primarily due to capital projects not implemented.

0 In the Transportation Fund, expenditures exceeded revenues by $2,000, decreasing the fund balance from $671,000 to $669,000 in FY 2009. The decrease in fund balance was less than the $372,000 decrease that was projected in the budget, due in large part to the additional revenue from property taxes ($224,000) as a result of modifying the allocation. Expenditures were below budget primarily due to not using the $125,000 contingency.

In FY 2009, the District established the Capital Projects Fund. This Fund will be used to pay the District's share of the NSSED facilities project. To meet these future expenses, the District sold $2.2 million in Alternate Revenue Bonds.

In the Fire Prevention and Life Safety Fund, the District sold nearly $3.9 million in Health Life Safety Bonds. The budget was under-expended by $1.4 million, primarily due to capital projects that were deferred.

Total net assets of governmental activities increased by nearly $7.2 million primarily because of operations in 2009. New Trier Township High School District 203 Management's ~iscus&onkd Analysis - Unaudited For the Year Ended June 30,2009

Overview of the Financial Statements

This discussion and analysis are intended to serve as an introduction to the District's basic financial statements. The basic financial statements are comprised of three components:

Government-wide financial statements, Fund financial statements, and Notes to the financial statements.

This report also contains other supplementary information in addition to the basic financial statements.

Government-widefinancial statements

The government-wide financial statements are designed to provide readers with a broad overview of the District's finances, in a manner similar to a private-sector business.

The statement of net assets presents information on all of the District's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the District is improving or deteriorating.

The statement of activities presents information showing how the District's net assets changed during the fiscal year being reported. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.

The government-wide financial statements present the functions of the District that are principally supported by taxes and intergovernmental revenues (governmental activities). The District has no business-type activities; that is, functions that are intended to recover all or a significant portion of their costs through user fees and charges. The District's governmental activities include instructional services (regular education, special education and other), supporting services, operation and maintenance of facilities and transportation services.

Fund financial statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District can be divided into two categories: governmental funds and fiduciary funds (the District maintains no proprietary funds). New Trier Township High School District 203 Management's Discussion and Analysis - Unaudited For the Year Ended June 30,2009

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a school district's near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The District maintains eight individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the General (Educational) Fund, Operations and Maintenance Fund, Transportation Fund, Municipal Retirement/Social Security Fund, Working Cash Fund, Debt Service Fund, Capital Projects Fund, and Fire Prevention and Life Safety Fund. The District considers all of its funds to be major funds.

The District adopts an annual budget for each of the funds listed above. A budgetary comparison statement has been provided for each fund to demonstrate compliance with this budget.

Fiduciary funds are used to account for resources held for the benefit of parties outside the school district. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the District's own programs. The accounting used for fiduciary funds is much like that for the government-wide financial statements. Notes to the financial statements

The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

Other information

In addition to the basic financial statement and accompanying notes, this report also presents certain required supplementary information concerning the District's progress in funding its obligation to provide pension benefits to its non-certified employees and to provide for the District's retiree's health plan. New Trier Township High School District 203 Management's Discussion and Analysis - Unaudited For the Year Ended June 30,2009

District-Wide Financial Analysis

As indicated in Table 1 below, capital assets total $64.3 million, representing approximately 35.1 percent of total assets. Compared to FY 08, capital assets remained basically unchanged. There was an increase in current and other assets in FY 2009 of $13.2 million or 12.5 percent primarily due to an increase in cash and investments and property tax receivable. Long-term debt outstanding is $23.4 million or 31.0 percent of total liabilities. This represents a 15.27 percent increase from FY 2008 due to the issuance of new debt. Other liabilities increased by $2.9 million compared to FY 2008 primarily due to deferred revenues.

As a result of the change in assets and liabilities noted above, net assets increased 7.18 percent or $7.2 million. The total net assets, as of June 30, 2009, are $107.5 million. Of this total, $52.9 million is unrestricted (49.11 percent) and $48.9 million or 45.57 percent is invested in capital assets net of related debt. In FY 2008, $49.2 million of total net assets were unrestricted. Additional information is available in the Statement of Net Assets on page 17.

Percentage 2009 2008 Chanae Current and other assets $118.7 $105.5 12.51 Capital assets 64.a 64.3 0.00 Total assets 182.0 169.8 7.77

Other liabilities 52.1 49.2 5.89 Long-term debt outstanding 2.1.4 20..1 1.5.27 Total liabilities 75.5 @Ui

Net assets: Invested in capital assets, net of related debt 48.9 47.1 3.82 Restricted 5.7 3-4 67.65 Unrestricted tig.c) 49.22 6.01 Total net asset $QQz55 &uGi z.i& New Trier Township High Schoo1,District203 Management's Discussion and Analysis - Unaudited For the Year Ended June ~0,2009

Table 2, Changes in Net Assets, illustrates in summary form revenues and expenses from FY 2009 and the increase in net assets of $7.2 million. Comparative data from FY 2008 is also illustrated.

The increase in net assets in FY 2009 exceeded the increase the Board of Education had anticipated due to positive variances in comparing budget to actual in both revenues and expenditures. State and federal grants exceeded budget while actual salaries, benefits, capital, and tuition were below budget and the contingency was not used.

The major variances in revenues from FY 2008 to FY 2009 occurred in operating grants & contributions, which increased by $2.2 million or 25.0 percent, primarily related to a significant increase in the state's retirement contribution. Property tax revenues increased $2.2 million. Overall, revenues increased $3.9 million or 4.1 percent.

Percentage Chanae 1 Revenues: Program revenues: Charges for services Operating grants & contributions Capital grants & contributions General revenues: Property taxes General state aid Other Total revenues

Expenses: Instruction Pupil & instructional services Administration &business Transportation Operations and maintenance Other Total expenses

Increase (decrease) in net assets New Trier Township High School District 203 Management's Discussion and Analysis - Unaudited For the Year Ended June 30,2009

Total expenses increased $3.2 million or 3.56 percent from FY 2008 to FY 2009. Instruction expense and pupil and instructional services in FY 2009 increased 7.75 percent and 8.5 percent respectively, as a result of rising insurance costs and increased regular and special education staffing needed to meet growing enrollment, to implement strategic planning initiatives and to create new student opportunities. Also included in the increase were charges for transportation services related to expanded services. Offsetting these increases were reduced costs in administrative and business services and in operations and maintenance services. Additional information is available in the Statement of Activities on page 17.

District-Wide Revenues by Source

0.1%

Charges for services 6 Operating grants & contributions Capital grants & contributions Property taxes General state aid tBIg Other

The District is extremely dependent upon property tax revenues, which account for more than 82.1 percent of total revenues. This percentage is slightly lower than the 83.2 percent in FY 2008. Operating grants and contributions account for nearly 11 percent of total revenues compared to 9 percent in EY 2008 due to increases in the state's retirement contribution. However, the future is uncertain with respect to state and federal sources of revenues. The state is in a difficult financial position and future increases in state funds are unlikely. The federal Medicare reimbursement program has also decreased significantly over the last several years. The successful tax rate referendum in April 2003 reduced the financial stress and the District's dependency on these other sources of revenue. New Trier Township High School District 203 Management's Discussion and Analysis - Unaudited For the Year Ended June 30,2009

With respect to the District's expenses by function, instruction and pupil & instructional services account for 78 percent of total expenses or $71.1 million. This is an 8.2 percent increase, compared to last year when expenses in these functions totaled $65.7 million, representing 73.1 percent of total expenses. This increase continues a trend to shift resources directly to instruction and instructional support services. The FY 2009 increase is slightly skewed due to the rather significant increase in state retirement contributions, which increased $1.9 million. Administrative and business services now represents 6.3 percent of total expenses compared to 8.1 percent in FY 2008 and operations and maintenance services are 12.5 percent compared to 14.5 percent in FY 2008. Additional information is available in the Statement of Activities on page 17.

District-Wide Expenses by Function

61.2%

Instruction Pupil & instructional services CI Administration & business Maintenance & operations Transportation Other

Financial Analysis of the District's Funds As more fully discussed in the next section, the General (Educational) Fund had excess revenues over expenditures and other financing sources of $5.3 million, which increased the fund balance from $38.6 million to $43.9 million in FY 2009. In the Operations and Maintenance Fund, revenues and expenditures were both approximately $7.4 million, maintaining the fund balance at $7.8 million. This result was a significant improvement over the budget projections, in which a $2.4 million deficit was projected. However, capital projects were not implemented, avoiding the deficit. New Trier Township High School District 203 Management's Discussion and Analysis - Unaudited For the Year Ended June 30,2009

In the Transportation and Municipal Retirement/Social Security Funds, revenues and expenditures were roughly the same resulting in minimal changes in the Fund Balances. In the Transportation Fund, revenues and expenditures were $1.9 million and the Fund Balance remained around $0.7 million. The revenues and expenditures in the Municipal Retirement / Social Security Fund were approximately $2.4 million as the Fund Balance ended the year where it started at $1.3 million. The fund balance in the Working Cash Fund grew as anticipated by $0.16 million to $5.5 million in FY 2009. In the Debt Service Fund, expenditures exceeded budget by $981,463. This variance is related to the Illinois Program Accounting Manual adjustment to pay the Principal and Interest on Alternate Revenue Bonds from the Debt Service Fund rather than the Operations and Maintenance Fund. Pledged Corporate Personal Property Replacement Tax revenues to cover this Principal and Interest obligation were also adjusted from the Operations and Maintenance Fund to the Debt Service Fund.

In FY 2009, the District established the Capital Projects Fund. This Fund will be used to pay the District's share of the NSSED facilities project. To meet these future expenses, the District sold $2.2 million in Alternate Revenue Bonds. The District expects to expend these funds in FY 2010. This transaction resulted in bond issuance expense and interest earnings on the proceedings. The 2008-09 Budget did not include the bond sale and as a result expenditures exceeded budget by $9,473 and the bond proceeds and related investment income also exceeded budget.

In the Fire Prevention and Life Safety Fund, the District sold approximately half of the $7.8 million authorized to address health, life safety building deficiencies. Expenditures in this fund were below budget by $1.4 million due to capital projects that were deferred. Capital projects charged to this Fund are scheduled for completion by June 2012. General Fund Budgetary Highlights

For the fiscal year ending June 30,2009, there were several budget variances. With respect to revenues, property taxes received totaled $68.8 million, which represented an increase of $2.8 million compared to FY 2008 tax receipts of $66.0 million, but receipts were below budget by nearly $0.3 million. A portion of this shortage is related to lower tax collections than projected. The increase compared to FY 2008 tax receipts was somewhat skewed due to a redistribution of taxes in the Levy, which was adopted after the Final Budget was approved.

Offsetting the negative budget variance in tax revenues were several positive budget variances in the other local revenue categories. Investment income had a positive variance of $76,000 and actual food sales exceeded budget by $135,000 due to greater participation in the program than projected. Other positive variances occurred in other local sources. In total, a negative variance of $44,000 occurred in local sources of revenues in the General (Educational) Fund. New Trier Township High School District 203 Management's Discussion ,and Analysis - Unaudited For the Year Ended June 30,2009

State sources of revenue exceeded budget by $577,000 as state funding levels improved over earlier projections. The major causes of this positive variance were special education categorical grants. A positive variance of $128,000 was also realized in Federal sources primarily due to Special Education 1.D.E.A Flow Through and Room & Board receipts. Overall, revenues and other sources exceeded the Budget by $661,000.

Budget variances also existed in expenditures. Overall, in the General (Educational) Fund, there was a positive variance of $2.4 million as actual expenditures of $71.1 million were 3.2 percent under the Budget of $73.5 million. This favorable variance was because of under expending the budget primarily in salaries, benefits, and special education tuition. In addition, the contingency of $0.4 million was not used. The significant budget variance, as noted above, reflects early efforts to control and reduce costs in anticipation of the historically low 2008 CPI of 0.1 percent which will have a significant impact on the district's future revenues compared to projections beginning in FY 2011. This is coupled with the State of Illinois' poor financial picture and the uncertainty of future state revenues. Therefore, efforts were also made to begin reducing costs where possible in the areas of supplies, services, and capital expenditures.

A positive variance of $1.3 million occurred in Instructional Services with a major portion of this variance related to actual salaries and benefits expenses coming in below budget in the regular and interscholastic programs, as well as several other smaller programs. This was partially due to several unfilled vacancies, reduced employee benefit premiums, and unexpended retirement payments to the Teachers Retirement System. Pupil support services expenses were $364,000 over budget while instructional staff support services had a negative variance of $i06,ooo. These variances are due to budget reclassifications required from the instruction programs. General administrative services and central support services had large budget variances as a result of reclassifications due to changes in the Illinois Program Accounting Manual. A positive budget variance of $359,000 occurred in business services related to lower energy cost compared to budget. Non-programmed charges for special education tuition had a positive variance of $455,000.

Overall, the Fund Balance in the General (Educational) Fund increased $5.3 million in FY 2009, from $38.6 million to $43.9 million. This was created by a positive variance of $3.1 million compared to a projected increase of $2.2 million. As indicated above, this positive variance is attributable to both the additional revenues received over budget and expending less than budget.

Additional information on the General (Educational) Fund activity in FY 2009 is available in the Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget to Actual on pages 47 - 55. New Trier Township High School District 203 Management's Discussion and Analysis - Unaudited For the Year Ended June 30,2009

Capital Asset and Debt Administration

Capital assets

Percentage 2009 2008 Chanae Land $5.2 $5.2 0.00 Construction in progress . 0.8 0.8 0.00 Buildings 1.2 1.4 -14.29

Building improvements 48.8 ' 48.3 1.04 Equipment & furniture h -8.6 SiL.49 Total ilkL3 QU

Table 3 above illustrates capital assets, net of depreciation. Capital assets include nearly $57.1 million in building improvements, equipment and furniture and represents nearly 89 percent of total capital assets. In FY 2009, capital assets reflect no change from FY 2008. Additional information is available in Note 4 - Capital Assets.

Long-term debt

Table 4 below illustrates the District's outstanding long-term debt. The District in IT 2009 issued $6.085 million in bonds consisting of $4.1 million in health life safety bonds and $2.2 million in alternate revenue bonds to fund the NSSED facilities project. This additional debt was partially offset by the repayment of existing debt of $3.5 million for a net increase of $2.8 million to $21.8 million. The District's other debt also increased by nearly $0.3 million related to other post-employment benefits. Additional information is available in Note 5 - Long-Term Liabilities.

The District is subject to the Illinois School Code, which limits the amount of bond indebtedness to 6.9% of the most recent available equalized assessed valuation of the District. As of June 30, 2009, the statutory debt limit for the District was $455,386,787 providing a debt margin of $434,215,470.

The ratio of general bonded debt to assessed valuation and the amount of bonded debt per capita are useful indicators of the District's debt position to District management, citizens, and investors. These indicators for the District at the end of fiscal year 2009 were 0.08 percent and $262, respectively. This represents an increase compared to fiscal year 2008 in which the ratio of general bonded debt to assessed valuation was 0.07 percent and the bonded debt per capita was $218. This decrease is due to the addition in total debt. New Trier Township High School District 203 Management's Discussion and Analysis - Unaudited For the Year Ended June 30,2009

General obligation bonds & notes

Factors Impacting the District's Future

Now that the District has successfully passed a significant tax rate referendum, factors bearing on the District's future, from a revenue perspective, are generally outside the control of the Board and the Administration. One major concern is the possibility of modifications to the system of financing Illinois Public School Districts. The current system is antiquated and overly dependent on property taxes, making it inequitable on a statewide basis; however, it does serve New Trier better than many alternatives being considered. The current funding system is a known quantity and allows greater control of the budget by local government. Legislation has again been introduced to modify the school funding system. A lesser concern does exist with the uncertainties of future state and federal revenues. However, the fact is that these sources represent a small percentage of the District's total revenue picture.

More immediate are the financial challenges faced as a result of the worldwide recession. This has had a significant impact on the State of Illinois, which is already behind in sending money to the school districts for special education, transportation and other grants. But even more critical to our District is the Consumer Price Index, which for 2008 was an unprecedented 0.1 percent. This means that the increase in local tax revenues, which represent nearly 90 percent of the District's total operational revenue source, will be capped at 0.1 percent for the 2009 tax bills that are paid in 2010. While the full effects of this extraordinarily low inflationary factor will not impact the District until FY 2011, action was taken immediately to begin to minimize the detrimental financial impact. Alternative sources of revenue must be explored and operating expenses across the District must be reduced in the coming years in order to provide the funds to maintain our outstanding programs.

On the expense side, the District continues to project enrollment growth through FY 2014, when enrollment is expected to peak at 4,266 students. This represents an increase of 115 students or 2.8 percent, compared to the FY 2009 enrollment of 4,151. However, based on current projections, enrollment remains relatively flat at around 4,200 students plus or minus loo students between the period of 2008-09 and 2016-17. The District will receive an updated demographic report in December 2010. New Trier Township High School District 203 Management's Discussion and Analysis - Unaudited For the Year Ended June 30,2009

During FY 2007, the Board of Education and the New Trier Education Association, representing the District's faculty, agreed to a new four-year contract, increasing base salaries 4.0 percent in year one (FY 2008) and 3.0 percent in year two. In year three, the base salary increase is tied to the National CPI for the 12-month period ending December 31, 2007, resulting in a 4.0 percent base increase. In year four, the base salary increase is tied to the National CPI for the 12-month period ending December 31, 2008, not to be lower than 2 percent, plus 1.5 percent resulting in a 3.5 percent base increase. These annual increases are in addition to a step increase for a year of experience, which equals an average of 2.2 percent. In addition, retirement benefits were modified because of recent pension reforms. These modifications were designed to reduce the District's liability to the Teachers' Retirement system by limiting annual increases and avoiding early retirement penalties.

During FY 2007, the Board of Education and the Physical Plant Association, representing the District's physical plant staff, agreed to a new four-year contract effective January I, 2008, increasing base salaries 2.6 percent in year one, 2.5 percent in year two, 2.4 percent in year three, and 2.9 percent in year four. These increases are in addition to a step increase for a year of experience, which equals an average of 2.0 percent.

During FY 2008, the Board of Education and the Educational Support Association, representing the District's educational support staff, ratified an agreement in October 2008. This new four-year agreement was retroactive to July I, 2008 and includes base salary increases that average 3.35 percent plus an average step increase of 1.70 percent each year.

Employee benefits continue to be a major concern for the Board of Education. However, for FY 2009, the benefit of switching to the Blue Cross Blue Shield PPO network (effective January 1, 2005) through our NIHIP cooperative has been significant. The current claim experience for all of NIHIP has significantly improved, particularly with respect to large claims. As a result, the 2009-10 NIHIP PPO premiums actually decreased by 1.1 perc ent, which was preceded by moderate increases of 3.8 percent in FY 2009, 4.8 percent increase in EY 2008, and a 0.2 percent increase for EY 2007. The District's HMO program, however, increased 6.8 percent for FY 2010, though the HMO premiums are nearly 40% below the District's primary PPO plan. With medical inflation still trending at around 10-12 percent, the administration continues to look for ways to control or at least minimize the spiraling growth in premiums. Another positive decision was to change dental cooperatives, allowing the District to maintain the same level of benefits while reducing premiums in 2006-07 by 10.7 percent. For FY 2008, EY 2009, and FY 2oi0,'premiums increased 6.0, 7.3, and 0.9 percent respectively, which is still below the inflation trend.

The District's Facilities Committee was reinstituted during 2006-07 to complete a survey of the facilities at both campuses to update the Capital Facilities Plan and to develop a process to investigate proposed and envisioned projects. In the summer of 2007, the Board of Education hired the architectural firm of Perkins + Will to assist in the development of a long-range facilities plan. That work continued during the next two years, with a long range facilities plan being approved by the Board of Education in April 2009. A plan for significant renovations and new construction at the Winnetka Campus will be presented to the Board in the fall of 2009. New Trier Township High School District a03 Management's ~iscusHion&d Analysis - Unaudited For the Year Ended June .?o,aooq

The facilities initiative, noted above, will be implemented in the summer of 2010 if approved and funding is secured through a capital referendum. The project includes demolition of some of the oldest and most deficient buildings on campus: the 1912 Cafeteria, 1925 Boiler Plant, 1928 Gates Gym complex, 1931 Tech Arts Building, and 1950 Music Building. These buildings would be replaced with a 315,000 square foot addition on the west side of the campus, replacing the demolished curricular spaces with classrooms suited to contemporary teaching and with integrated technology capacity. The efficient use of land on the west side would also allow replacement of many outdated and insufficiently sized classrooms, library, student activities rooms, and multimedia space. On the east side, the Gates Gym would be replaced with a new gym and locker rooms, field house, fitness areas, and fifteen new classrooms for math, English, social studies and health. The central part of the campus including the iconic Tower Building, North Building (with the pool), Gaffney Auditorium, and 1974 gym addition, would remain; renovations in the Tower and North Buildings would allow the addition of three new science labs and two science classrooms and the re-purposing of the smallest, least usable classrooms to meet other needs.

During the 2009-2010, the B Building of the Northfield Campus will be renovated and returned to school use. Leased by Stepan Chemical for over twenty years, the B Building will be returned to classroom use, and will incorporate campus offices, a student commons, Physical Plant Services space, the New Trier Extension program, and possibly a daycare facility for use by staff children. Moving classrooms to the B Building allows renovation of spaces in the D and F Buildings to add a new science lab, dance studio, and expansion of art spaces.

Finally, in June 2007, the State Board of Education approved new Health Life Safety Amendments for each campus totaling $7.8 million. Projects included under these amendments include security enhancements, masonry repairs, roof replacements, and window replacements. These projects are being evaluated in conjunction with the larger facilities plans and are scheduled for completion by June 2012.

In the fall of 2003, the Strategic Planning Committee of 30 community members, staff, school board members and students created six ambitious strategies designed to help realize the promise of New Trier's mission "to commit minds to inquiry, hearts to compassion, and lives to the service of humanity by working in partnership with the community to provide innovative programs for all students, nurture their unique abilities, and encourage them to pursue excellence in their endeavors." (Mission Statement as contained in the Strategic Plan)

By the end of 2004, the six Action Teams - - one for each strategy - - had developed 41 action plans. These action plans comprise the balance of the 2005-2010 District Strategic Plan that the Board of Education approved on March 21, 2005. The 2005-2010 Strategic Plan affirms the excellent work of the six action teams--constructed to address the six strategies from the December 2003 session--by including all 41 of the recommended action plans. For four initiatives (i.e., intersession, a mandated lunch period, the daily and weekly class schedule, and school-within-a-school), an action plan has been combined with a similar and/or complementary action plan from another action team. New Trier Township High School District 203 Management's Discussion and Analysis - Unaudited For the Year Ended June 30,2009 b Since that time, committees have worked to implement various initiatives recommended by action teams. Opportunities for students, parents, staff, and community members to participate in planning and implementation will continue in the fall of 2009. A committee has been formed to begin assessment of the Strategic Plan as the final year of implementation begins. The financial impact of the Strategic Plan is included in the District's Long Range Financial projections.

Requests for Information

This financial report is designed to provide the District's citizens, taxpayers, and creditors with a general overview of the District's finances and to demonstrate the District's accountability for the money it receives. If you have questions about this report, or need additional financial information, contact the Business Office, 7 Happ Road, Northfield, Illinois 60093. NEW TRIER TOWNSHfP HtGH SCHOOL DISTRICT 203 STATEMENT OF NET ASSETS JUNE 30,2009

GOVERNMENTAL ACTIVITIES

Assets

Cash Investments Receivables (net of allowance for uncollectibles): Interest Property taxes Replacement taxes Intergovernmental Capital assets: Land Construction in progress Depreciable buildings, property and equipment, net Total assets

Liabilities

Accounts payable Salaries and wages payable Payroll deductions payable Other current liabilities Unearned revenue Long-term liabilities: Other long-term liabilities - due within one year Other long-term liabilities - due after one year Total liabilities

Net assets

Invested in capital assets, net of related debt Restricted for: Retirement benefits Debt service NSSED facilities project Unrestricted Total net assets

See Notes to Basic Financial Statements

- 17- This page has been intentionally left blank. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30,2009

NET (EXPENSES) REVENUE AND CHANGES IN NET PROGRAM REVENUE ASSETS OPERATING CAPITAL GRANTS CHARGES FOR GRANTS AND AND GOVERNMENTAL FUNCTIONSIPROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS ACTIVITIES

Governmental activities Instruction: Regular programs $ 31,308,724 $ 227,851 $ 310,782 $ 33,444 $ (30,736,647) Special programs 9,459,902 - 2,445,154 - (7,014,748) Other instructional programs 7,496,607 1,404,067 158,055 38,945 (5,895,540) State retirement contributions 7,316,911 - 7,316,911 - - Support Services: Pupils 9,383,606 - 10,296 - (9,373,310) lnstructional staff 5,952,OI 3 - 80,235 48,974 (5,822,804) General administration 1,291,270 - - - (1,291,270) School administration 1,449,672 - - - (I,449,672) Business 2,931,879 1,794,598 146,132 - (991,149) Transportation 1,967,347 242,976 51 8,422 .. (1,205,949) Operations and maintenance 11,473,204 405,000 - .. (11,068,204) Central 2,156,615 - - .. (2,156,615) Other supporting services 43,739 - (43,739) Community services 32,079 - - - (32,079) Interest and fees 745.620 - - - (745.620) Total governmental activities $ 93,009,188 $ 4.074.492 $ 10,985.987 General revenues: Taxes: Real estate taxes, levied for general purposes Real estate taxes, levied for specific purposes Real estate taxes, levied for debt service Personal property replacement taxes State aid-formula grants - unrestricted Investment income Total general revenues Change in net assets 7,190,413 Net assets, beginning of year Net assets, end of year

See Notes to Basic Financial Statements NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30,2009 WTH COMPARATIVE TOTALS FOR JUNE 30,2008 GENERAL OPERATIONS AND MUNICIPAL (EDUCATIONAL) MAINTENANCE TRANSPORTATION RETIREMENTISOCIAL FUND FUND FUND SECURITY FUND Assets Cash $ 4,959,133 $ 2,077,171 $ - $ 290,304 Investments 43,605,405 6,226,000 800,000 1,000,000 Receivables (net allowance for uncollectibles): Interest 568,009 109,559 6,818 17,518 Property taxes 38,766,535 3,029,687 789,275 1,295,403 Replacement taxes - 180,180 - - Intergovernmental 601,126 - 257,844 - Total assets $ 88,500,208 $ 11.622.597 $ 1.853.937 $ 2.603.225 Liabilities and fund balance Cash deficit $ - $ - $ 385,707 $ - Accounts payable 1,137,740 698,922 16,191 - Salaries and wages payable 3,662,561 21,422 850 - Payroll deductions payable 51 3,991 - - Other current liabilities 195,080 - - - Unearned revenue 39.094.495 3.067.775 781 -718 1.288.093 Total liabilities 44,603.867 3.788.1 19 1,184.466 1,288.093 Fund balance Unreserved fund balance: Designated for future expenditures 686,424 2,745,919 - - Undesignated 43,209.91 7 5,088.559 669,471 1,315,132 Total fund balance 43.896.341 7.834.478 669.471 1,315.132 Total liabilities and fund balance $ 88,500,208 $ 11,622,597 $ 1,853,937 $ 2,603.225

See Notes to Basic Financial statements

- 19- FIRE PREVENTION WORKING CASH DEBT SERVICE CAPITAL AND LIFE SAFETY TOTAL FUND FUND PROJECTS FUND FUND 2009 2008 This page has been infenfionally left blank. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS JUNE 30,2009

Total fund balances - governmental funds

Amounts reported for governmental activities in the Statement of Net Assets are different because:

Net capital assets used in governmental activities and included in the Statement of Net Assets do not require the expenditure of financial resources and, therefore, are not reported in the governmental funds balance sheet.

Certain revenues receivable by the District and recognized in the Statement of Net Assets do not provide current financial resources and are deferred in the. governmental funds balance sheet, as follows: Interest revenue $ 672,861 Grant revenue 75,272

Long-term liabilities applicable to the District's governmental activities are not due and payable in the current period and, accordingly, are not reported as fund liabilities. All liabilities - both current and long-term - are reported in the Statement of Net Assets. Balances at June 30,2009 are: Bonds payable Post-employment benefit obligations Capital leases Compensated absences

Net assets of governmental activities

See Notes to Basic Financial Statements

- 21 - NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30,2009 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30,2008 GENERAL OPERATIONS AND MUNICIPAL (EDUCATIONAL) MAINTENANCE TRANSPORTATION RET~REMENTISOCIAL FUND FUND FUND SECURIN FUND Revenues Property taxes Corporate personal property replacement taxes State aid Federal aid Investment income Other Total revenues Expenditures Current: Instruction: Regular programs Special programs Other instructional programs State retirement contributions Support Services: Pupils Instructional staff General administration School administration Business Transportation Operations and maintenance Central Other supporting services Community services Payments to other districts and gov't units Debt Service: Principal Interest and other Capital outlay Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Principal on bonds sold Premium on bonds sold Sale or compensation for fixed assets Other financing sources - capital lease Total other financing sources (uses) Net change in fund balance Fund balance, beginning of year Fund balance, end of year

See Notes to Basic Financial Statements FIRE PREVENTION WORKING CASH DEBT SERVICE CAPITAL AND LIFE SAFETY TOTAL FUND FUND PROJECTS FUND FUND 2009 2008 NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2009

Net change in fund balances - total governmental funds Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlay as expenditures. However, in the Statement of Activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay exceeds depreciation expense in the current period. See Note 4 for additional information;

Certain revenues included in the Statement of Activities do not provide current financial resources and, therefore, are deferred in the fund statements: Interest revenue $ 235,514 Grant revenue

The issuance of long-term debt (bonds, capital leases, etc.) provides current financial resources to the governmental funds, while its principal repayment consumes current financial resources of the governmental funds. Neither transaction, however, has any effect on net assets. This is the amount by which proceeds from current year long-term financing arrangements exceeded current year principal repayments.

Some of the bonds issued in prior years are capital appreciation bonds. Accretion of the bonds during the year increases the carrying value of the bonds and will be repaid using future year resources. The current year's accretion is charged to interest expense in the entity-wide statements.

In the Statement of Activities, operating expenses are measured by the amounts incurred during the year. However, certain of these items are included in the governmental funds only to the extent that they require the expenditure of current financial resources: Post-employment benefit obligations $ (452,598) Interest payable 34,527 Compensated absences (44.939) (463,010)

Change in net assets of governmental activities

See Notes to Basic Financial Statements

-24- NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 AGENCY FUND STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES

AGENCY STUDENT ACTIVITY FUND

Assets

Cash and investments Accounts receivable Total assets

Liabilities

Due to student groups Due to scholarship fund Total liabilities

See Notes to Basic Financial Statements

-25- This page has been intentionally left blank. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30,2009

New Trier Township High School District 203 (the "District") operates as a public school system governed by a seven-member board. The District is organized under the School Code of the State of Illinois, as amended. The accounting policies of the District conform to accounting principles generally accepted in the United States of America, as applicable to local governmental units of this type. The following is a summary of the more significant accounting policies of the District:

Reporting Entity Accounting principles generally accepted in the United States of America require that the financial statements of the reporting entity include: (1) the primary government, (2) organizations for which the primary government is financially accountable, and (3) other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. The criteria provided in Government Accounting Standards Board Statements has been considered, and there are no agencies or entities which should be presented with the District. Using the same criteria, the District is not included as a component unit of any other governmental entity.

A legally separate, tax exempt organization should be reported as a component unit of a reporting entity if all of the following criteria are met: (1) the economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the primary government, its component units, or its constituents; (2) the primary government is entitled to, or has the ability to otherwise access, a majority of the economic resources received or held by the separate organization; (3) the economic resources received or held by an individual organization that the specific primary government, or its component units, is entitled to, or has the ability to otherwise access, are significant to that primary government. Blended component units, although legally separate entities, are, in substance, part of the government's operations and are reported with similar funds of the primary government. Each discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the primary government. This report does not contain any component units.

Basis of Presentation Government-wide Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the District. The effect of all interfund activity has been removed from these statements. The District's operating activities are all considered "governmental activities", that is, activities normally supported by taxes and intergovernmental revenues. The District has no operating activities that would be considered "business activities".

The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include: (1) amounts paid by the recipient of goods or services offered by the program and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30,2009

Governmental Funds Financial Statements Governmental funds financial statements are organized and operated on the basis of funds and are used to account for the District's general governmental activities. Fund accounting segregates funds according to their intended purpose, and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts that comprise its assets, liabilities, reserves, fund balance, revenues and expenditures. The minimum number of funds is maintained consistent with legal and managerial requirements.

Separate financial statements are provided for all governmental funds and fiduciary funds; the fiduciary funds are excluded from the government-wide financial statements.

Measurement Focus and Basis of Accounting The government-wide financial statements are reported using the economic resources measurement focus, while the fiduciary fund statements do not have a measurement focus. The government-wide financial statements and the fiduciary fund financial statements are reported using the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue when all eligibility requirements have been met.

Governmental fund financial statements are reported using the flow of current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when they are both "measurable and available". "Measurable" means that the amount of the transaction can be determined, and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers all revenues available if they are collected within 60 days after year-end. Expenditures are recorded when the related fund liability is incurred. However, expenditures for unmatured principal and interest on general long-term debt are recognized when due; and certain compensated absences, claims and judgments are recognized when the obligations are expected to be liquidated with expendable available fmancial resources.

Major Governmental Funds General Fund - (Educational Fund) the general operating fund of the District. It accounts for all financial resources except those required to be accounted for in another fund. This fund is primarily used for most of the instructional and administrative aspects of the District's operations. Revenues consist largely of local property taxes and state government aid.

Special Revenue Funds - account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes, other than those accounted for in the Debt Service Fund, Capital Projects Funds or Fiduciary Funds. Operations and Maintenance Fund - accounts for expenditures made for repair and maintenance of the District's buildings and land. Revenue consists primarily of local property taxes. Transportation Fund - accounts for all revenue and expenditures made for student transportation. Revenue is derived primarily from local property taxes and state reimbursement grants. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30,2009

Municipal Retirement/Social Security Fund - accounts for the District's portion of pension contributions to the Illinois Municipal Retirement Fund, payments to Medicare, and payments to the Social Security System for non-certified employees. Revenue to finance the contributions is derived primarily from local property taxes and personal property replacement taxes. Working Cash Fund - accounts for financial resources held by the District to be used as temporary interfund loans for working capital requirements to the General (Educational) Fund and the Special Revenue Fund's Operation and Maintenance and Transportation Funds. Money loaned by the Working Cash Fund to other funds must be repaid within one year. As allowed by the School Code of Illinois, this fund may be permanently abolished and become a part of the General (Educational) Fund or it may be partially abated to the General (Educational) Fund. Debt Service Fund - accounts for the accumulation of resources for, and the payment of, long-term debt principal, interest and related costs. The primary revenue source is local property taxes levied specifically for debt service.]

Capital Proiect Funds - accounts for the financial resources to be used for the acquisition or construction of, andlor additions to, major capital facilities. Capital Projects Fund - accounts for construction projects and renovations financed through serial bond issuaces. Fire Prevention and Life Safety Fund - accounts for State-approved life safety projects financed through serial bond issues or local property taxes levied specifically for such purposes.

Other Fund Types Fiduciary Funds - account for assets held by the District in a trustee capacity or as an agent for individuals, private organizations, other governments or other funds. Agency Funds - include Student Activity Funds, Convenience Accounts and Other Agency Funds. These funds are custodial in nature and do not present results of operations or have a measurement focus. Although the Board of Education has the ultimate responsibility for Activity Funds, they are not local education agency funds. Student Activity Funds account for assets held by the District which are owned, operated and managed generally by the student body, under the guidance and direction of adults or a staff member, for educational, recreational or cultural purposes. Convenience Accounts account for assets that are normally maintained by a local education agency as a convenience for its faculty, staff, etc.

In accordance with GASB No. 24, on-behalf payments (payments made by a third party for the benefit of the district, such as payments made by the state to the Teachers' Retirement System) have been recognized in the financial statements.

Property taxes, replacement taxes, certain state and federal aid, and interest on investments are susceptible to accrual. Other receipts become measurable and available when cash is received by the District and recognized as revenue at that time.

Grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant. Accordingly, when such funds are received, they are recorded as deferred revenues until earned. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30,2009

All Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.

Assets, Liabilities and Net Assets or Equity Deposits and Investments State statutes authorize the District to invest in obligations of the U.S. Treasury, certain highly-rated commercial paper, corporate bonds, repurchase agreements, and the State Treasurer's Investment Pool. Investments are stated at fair value. Changes in fair value of investments are included as investment income.

Receivables and Payables Transactions between funds that are representative of lendinglborrowing arrangements outstanding at the end of the fiscal year are referred to as "due tolfrom other funds". These amounts are eliminated in the governmental activities column in the statement of net assets. Receivables are expected to be collected within one year.

Deferred Re venue Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. Property taxes levied for the subsequent year are not earned and cannot be used to liquidate liabilities of the current period. Governmental funds also defer revenue recognition in connection with resources that have been received, but not yet earned. At the end of the current fiscal year, the various components of deferred revenue and unearned revenue reported in the governmental funds were as follows: Unavailable Unearned Totals

Property taxes receivable for subsequent year $ - $ 44,903,919 $ 44,903,919 Interest income receivable 672,861 - 672,861 State and federal aid receivable 75,272 - 75,272 Local receipts receivable - 436.273 436,273 Total $ 748,133 $ 45.340.192 $ 46,088.325

Property Tax Revenues t The District must file its tax levy resolution by the last Tuesday in December of each year. The District's 2008 I levy resolution was approved during the December 15,2008 board meeting. The District's property tax is levied I each year on all taxable real property located in the District and it becomes a lien on the property on January 1 of that year. The owner of real property on January 1 in any year is liable for taxes of that year. i F I The tax rate ceilings are applied at the fund level. These ceilings are established by state law subject to change 1 t only by the approval of the voters of the District. NOTES TO BASIC FINANCIAL STATEMENTS

The PTELA limitation is applied in the aggregate to the total levy (excluding certain levies for the repayment of debt). PTELA limits the increase in total taxes billed to the lessor of 5% or the percentage increase in the Consumer Price Index (CPI) for the preceding year. The amount can be exceeded to the extent there is "new growth" in th'e District's tax base. The new growth consists of new construction, annexations and tax increment finance district property becoming eligible for taxation. The CPI rates applicable to the 2008 and 2007 tax levies were 4.1% and 2.5%, respectively.

Property taxes are 6ollected by the Cook County Collector/Treasurer, who remits to the District its share of collections. Taxes levied in one year become due and payable in two installments: the first due on March 1 and the second due on the later of August 1 or 30 days after the second installment tax bill is mailed (typically, this is due in late August or early September). The first installment is an estimated bill, and is one-half of the prior year's tax bill. The second installment is based on the current levy, assessment and equalization, and any changes from the prior year will be reflected in the second installment bill. Property taxes are normally collected by the District within 60 days of the due date.

The 2008 property tax levy is recognized as a receivable in fiscal 2009, net of estimated uncollectible amounts approximating 0.5%. The District considers that the fust installment of the 2008 levy is to be used to finance operations in fiscal 2009. The District has determined that the second installment of the 2008 levy is to be used to finance operations in fiscal 2010 and has deferred the corresponding receivable.

Personal Property Replacement Taxes Personal property replacement taxes are first allocated to the Municipal Retirement / Social Security Fund, and the balance is allocated to the remaining funds at the discretion of the District.

Capital Assets Capital assets, which include land, land improvements, buildings, building improvements, vehicles, equipment, and construction in progress are reported in the government-wide financial statements. Capital assets are defined by the District as assets with an initial individual cost of more than $5,000 and an estimated useful life of more than 1 year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation. In 2002, the District engaged an appraisal company to estimate historical cost of its capital assets acquired prior to that date.

Depreciation of capital assets is provided using the straight-line method over the following estimated useful lives: Assets Years Buildinns 50 - 100 ~uildingimprovements Equipment

In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition.

Compensated Absences Under terms of employment, employees are granted sick leave and vacations in varying amounts. Only'benefits considered to be vested are disclosed in these statements. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30,2009

All vested vacation and sick leave pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements, or are payable with expendable available resources.

Payments for vacation and sick leave will be made at rates in effect when the benefits are used. Accumulated vacation and sick leave liabilities at June 30,2009 are determined on the basis of current salary rates and include salary related payments.

Long- Term Obligations In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the applicable bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.

In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the period incurred. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Equity Classifications Equity is classified as net assets and displayed in three components:

Invested in capital assets, net of related debt - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets less than any unspent debt proceeds.

Restricted net assets - Consists of net assets with constraints placed on their use either by 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments or, 2) law through constitutional provisions or enabling legislation.

Unrestricted net assets - All other net assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt."

When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted resources first, and then unrestricted resources as they are needed.

Resenfed and Designated Fund Balances In the governmental funds financial statements, the District reserves those portions of fund balances which are legally segregated for a specific purpose or do not represent amounts available for other appropriations.

Designations of fund balance represent tentative management plans that are subject to change. A portion ($686,424) of the General (Educational) Fund's balance and a portion ($2,745,919) of the Operations and Maintenance Fund's balance has been designated to fund future year's expenditures. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30,2009

Comparative Data The financial statements include summarized prior-year comparative information. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the District's financial statements for the year ended June 30,2008, from which such summarized information was derived.

Eliminations and Reclassifications In the process of aggregating data for the government-wide financial statements, some amounts reported as interfund activity and balances were eliminated or reclassified.

NOTE2 - STEWARDSHIP,COMPLIANCE AND ACCOUNTABILITY

Excess of Expenditures over Budget For the year ended June 30,2009, expenditures exceeded budget in the Debt Service and Capital Projects Fund by $98 1,463, and $9,473, respectively. These excesses were funded by available fund balances.

NOTE3 - DEPOSITSAND ~NVESTMENTS

At year end, the District's cash and investments was comprised of the following:

Government- wide Fiduciary Total

Cash $ 7,405,412 $ 487,640 $ 7,893,052 Investments 63,762.405 2.31 5,632 66,078,037 Total $ 71,167.817 $ 2,803,272 $ 73.971.089

For disclosure purposes, this amount is segregated into the following components: I) cash on hand 2) deposits with financial institutions, which include amounts held in demand accounts, savings accounts and non-negotiable certificates of deposit; and 3) other investments, which consist of all investments other than certificates of deposit, as follows:

Cash Investments Total

Cash on hand Deposits with financial institutions Other investments Total $ 7,893,052 $ 66.078.037 $ 73.971.089 NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS

At year end, the District had the following investments: Investment Maturity (In Years) Fair Value Less than one 1-5 5-10 More than 10

U.S. Agencies $ 1,502,005 $ - $ 1,502,005 $ - $ - Mutual Bond Fund 446,955 - - - 446,955 Equitable Securities 768,677 768,677 - - - ISDLAF 9,607 9,607 - - - Illinois Funds 2,779 2,779 - - - Money Markets 97.216 97,216 - - - Total $ 2.827,239 $ 878.279 $ 1,502,005 $ - $ 446.955

Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversly affect the value of an invesment. The District's investment policy limits investment maturities to four years as a means of managing its exposure to fair value losses arising from increasing interest rates. The policy also requires the District's investment portfolio to be sufficiently liquid to enable the District to meet all operating requirements as they come due. Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State Statues limits the investments in commercial paper and corporate bonds to the top three ratings of two nationally recognized statistical rating organizations (NRSROYs).As of June 30,2009, the District's investments in U.S. Agencies were rated AAA by Standard & Poor's and Aaa by Moody's Investors Service, and the Mutual Bond Fund had an average rating of A with both Standard & Poor's and Moody's Investors Service. The District's investment in money markets invests in the top two ratings of the NRSROs. The Illinois School District Liquid Asset Fund Plus (ISDLAF+) is a not-for-profit investment trust formed pursuant to the Illinois Municipal Code and managed by a Board of Trustees elected from participating members. ISDLAF + is not registered with the SEC as an investment company. Investments are rated AAAm and valued at share price, which is the price for which the investment could be sold. Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in Illinois Funds are rated AAAm and are valued at Illinois Funds' share price, which is the price for which the investment could be sold. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS

NOTE3 - DEPOSITSAND INVESTMENTS- (CONTINUED) Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The investment policy requires diversification of the investment portfolio to eliminate risk of loss resulting in over concentration in a specific maturity, issuer, or class of securities. Diversification strategies are as follows: Up to 100% of investments can be in bonds, notes, certificates of indebtedness, treasury bills or other securities issued by the United States of America, its agencies and allowable instrumentalities. Up to 90% of investments can be interest bearing savings accounts, interest bearing certificates of deposit or interest bearing time deposits, any other investments constituting direct obligations of any bank as defined by the Illinois Banking Act, or certificates of deposit with federally insured institutions that are

, collateralized or insured at levels acceptable to the District in excess of the $100,000 provided by the FDIC coverage limit. Up to 50% in collateralized repurchase agreements, certain commercial paper, Illinois Public Treasurer's Investment Pool or the Illinois School District Liquid Asset Fund. At June 30,2009, more than 5% of the District's other investments were invested in the Federal National Mortgage Association (33.0%) and the Federal Home Loan Mortgage Corporation (67.0%). Custodial Credit Risk - Deposits. With respect to deposits, custodial credit risk refers to the risk that, in the event of a bank failure, the District's deposits may not be returned to it. The District's investment policy limits the exposure to deposit custodial credit risk by requiring all deposits in excess of FDIC insurable limits to be secured by collateral or private party insurance in the event of default or failure of the financial institution holding the funds. As of June 30,2009, the bank balance of the District's deposit with financial institutions totaled $75,78 1,870; of this amount, $ 1,110,343 was uncollateralized and insured. Custodial Credit Risk - Investments. With respect to investments, custodial credit risk is the risk that, in the even of the failure of the counterparty, the government will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The District's investment policy limits the exposure to investment custodial credit risk by requiring third party safekeeping for all investments. Separate cash and investment accounts are not maintained for all District funds; instead, the individual funds maintain their invested and uninvested balances in the common checking and investment accounts, with accounting records being maintained to show the portion of the common account balance attributable to each participating fund. Occasionally certain funds participating in the common bank accounts will incur overdrafts (deficits) in the account. The overdrafts result from expenditures that have been approved by the Board of Education. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30,2009

Capital asset activity for the District for the year ended June 30,2009, was as follows:

Beginning Ending Balance Increases Decreases Balance

Capital assets not beina depreciated: Land $ 5,170,483 $ - $ - $ 5,170,483 Construction in progress 771,126 43.851 - 814.977 Total capital assets not being depreciated 5.941.609 43.851 - 5.985.460 Capital assets beins depreciated: Buildings Building improvements Equipment Total capital assets being depreciated Less Accumulated Depreciation for: Buildings Building improvements Equipment Total accumulated depreciation 57.278.181 5.474.1 39 8.785.302 53.967.018 Net capital assets being depreciated 58,356,398 2,356 - 58,358.754 Net governmental activities capital assets $ 64.298.007 $ 46,207 $ - $ 64,344.214

Depreciation expense was recognized in the operating activities of the District as follows:

Governmental Activities Depreciation

Regular programs Special programs Other instructional programs Pupils Instructional staff General administration School administration Business Operations and maintenance Other supporting services Community services Total depreciation expense - governmental activities NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS

Changes in General Long-term Liabilities. The following is the long-term liability activity for the District for the year ended June 30,2009:

Beginning Ending Due Within Balance Issuances Accretion Retirements Balance One Year

General obligation bonds $ 17,800,726 $ 3,840,000 $ 253,624 $ 2,875,000 $ 19,019,350 $ 2,845,000 Alternate revenue bonds 1,395,000 2,245,000 690,000 2,950,000 820,000 Unamortized discount (208.1571 (35.534) (1 72,623) Total bonds payable 18,987.569 6,085,000 253.624 3,529.466 21.796.727 3.665.000 Other post- employment benefits 630,635 943,254 490,656 1,083,233 Capital leases 404,874 138,913 265,961 143,672 Compensated absences 256,722 686.151 641,212 301.661 301,661 Total long-term liabilities - governmental activities $ 20,279,800 $ 7.714.405 $ 253.624 $ 4,800,247 $ 23,447.582 $ 4.110.333

The obligations for the compensated absences and other post employment benefits will be repaid from the General (Educational) Fund and the Operations and Maintenance Fund. General Obligation Bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the District. General obligation bonds currently outstanding are as follows:

Original Face Carrying Purpose Interest Rates Indebtedness Amount Amount

Series 1999 General Obligation School Bonds dated February 8, 1999 are due in annual installments through December 1,2009 3.80% $ 8,025,000 $ 350,000 $ 350,000 Series 2004 General Obligation Capital Appreciation Bonds dated are due in annual installments through 2.27% - 3.88% 7,998,637 7,845,000 7,239,350 Series 2005 General Obligation School Bonds dated September 15,2004 are due in annual installments through December 1,2013 3.00% - 3.90% 7,030,000 6,430,000 6,430,000 Series 2006 General Obligation School Bonds dated April 15,2005 are due in annual installments through December 1,2018 4.00% 3,735,000 1,160,000 1,160,000 Series 2008 General Obligation School Bonds dated December I,2006 are due in annual installments through December I,201 3 2.00% - 3.30% 3,840.000 3.840.000 3.840.000 Total $' 30,628.637 $ 19.625.000 $ 19.019.350 NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30,2009

Annual debt service requirements to maturity for general obligation bonds are as follows for governmental type activities:

Principal Interest Total

Total $ 19,625.000 $ 2,004,039 $ 21,629,039

The District is subject to the Illinois School Code, which limits the amount of certain indebtedness to 6.9% of the most recent available equalized assessed valuation of the District. As of June 30,2009, the statutory debt limit for the District was $455,386,787, providing a debt margin of $434,215,470. There are numerous covenants with which the District must comply in regard to these bond issues. As of June 30,2009, the District was in compliance with all significant bond covenants, including federal arbitrage regulations. Alternate Revenue Bonds. The obligations for the alternative revenue bonds will be repaid from the Debt Service Fund. Alternate Revenue bonds currently outstanding are as follows:

Interest Original Carrying Purpose Rates Indebtedness Amount

Series 2005 Building Bonds dated April 15, 2005 are due in annual installments through June 1,2010 3.00% - 3.38% $ 2,125,000 $ 705,000 Series 2008 Alternative Revenue Bonds dated December 29, 2008 are due in annual installments through December 1,2023 3.00% - 4.375% 2.245.000 2,245.000 Total $ 4,370,000 $ 2,950.000

Annual debt service requirements to maturity for alternative revenue bonds are as follows for governmental type activities:

Principal Interest Total

Total $ 2,950,000 $ 784,278 $ 3.734.278 NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS

Actuarial valuations of an ongoing plan involve estimates for the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information that shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan is understood by the employer and plan members) and include the type of benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employer and plan members to that point. The methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations.

In the July 1,2008 actuarial valuation, the entry age actuarial cost method was used. The actuarial assumptions include a 4.5 percent investment rate of return and an annual healthcare cost trend rate of 10 percent initially, reduced by decrements to an ultimate rate of 4 percent after 9 years. Both rates include a 4 percent inflation assumption. The actuarial value of the Retiree's Health Plan assets was determined using techniques that spread the effects of short-term volatility in the market value of investments over a three-year period. The Retiree's Health Plan's unfunded actuarial accrued liability is being amortized as a level of percentage of projected payroll on an open basis. The remaining amortization period at June 30,2009 is 28 years for the Non-Certified retirees and 8 years for the Certified and Administrative retirees.

The retirement plans of the District include the Teachers' Retirement System of the State of Illinois (TRS) and the Illinois Municipal Retirement Fund (IMRF). Most funaing for TRS is provided through payroll withholdings of certified employees and contributions made by the State of Illinois on-behalf of the District. IMRF is funded through property taxes and a perpetual lien of the District's corporate personal property replacement tax. Each retirement system is discussed below.

Teachers' Retirement System The District participates in the Teachers' Retirement System of the State of Illinois (TRS). TRS is a cost-sharing, multiple-employer defined benefit pension plan that was created by the Illinois legislature for the benefit of Illinois public school teachers employed outside the city of Chicago.

The IlIinois Pension Code outlines the benefit provisions of TRS, and amendments to the plan can be made only by legislative action with the governor's approval. The State of Illinois maintains primary responsibility for the funding of the plan, but contributions from participating employers and members are also required. The TRS Board of Trustees is responsible for the System's administration. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30,2009

The District's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the District's annual OPEB cost for the year, the amount actually contributed to the Retiree's Health Plan, and changes in the District's net OPEB obligation to the Retiree's Health Plan:

Arinual required contribution Interest on nef'OPEB obligation Adjustment to annual required contribution

Annual OPEB cost Contributions made Increase in net OPEB obligation (asset)

Net OPEB Obligation (Asset) - Beginning of Year 630.635

Net OPEB Obligation (Asset) - End of Year

The District's annual OPEB cost, the percentage of annual OPEB cost contributed to the Retiree's Health Plan, and the net OPEB obligation for June 30,2009 and the preceding year are as follows:

Percentage of Annual OPEB Net OPEB Annual OPE6 Cost Obligation Fiscal Year Ended Cost Contributed (Asset)

June 30,2009 June 30,2008

The funded status of the Retiree's Health Plan as of June 30,2009, the most recent actuarial valuation date, is as follows:

Actuarial accrued liability (AAL) Actuarial value of plan assets

Unfunded Actuarial Accrued Liability (UAAL)

Funded ratio (actuarial value of plan assetsIAAL) -%

Covered payroll (active plan members) $ 42,303,222

UAAL as a percentage of covered payroll 16.05% NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30,2009

The State Employees Group Insurance Act of 1971 (5 ILCS 375) outlines the benefit provisions of THIS Fund and amendments to the plan can be made only by legislative action with the Governor's approval. The Illinois Department of Healthcare and Family Services (HFS) and the Illinois Department of Central Management Services (CMS) administer the plan with the cooperation of TRS. The director of HFS determines the rates and premiums for annuitants and dependent beneficiaries and establishes the cost-sharing parameters. Section 6.6 of the State Employees Group Insurance Act of 1971 requires all active contributors to the TRS who are not employees of the state make a contribution to THIS.

The percentage of employer required contributions in the future will be determined by the director of Healthcare and Family Services and will not exceed 105 percent of the percentage of salary actually required to be paid in the previous fiscal year.

On BehaEfContributions to THIS Fund. The State of Illinois makes employer retiree health insurance contributions on behalf of the District. State contributions are intended to match contributions to THIS Fund from active members which were 0.84 percent of pay during the year ended June 30,2009. State of Illinois contributions were $342,980, and the District recognized revenues and expenditures of this amount during the year. State contributions intended to match active member contributions during the year ended June 30,2008 were also 0.84 percent of pay. They were 0.80 percent for the year ended June 30,2007. State contributions on behalf of District employees were $324,387 and $293,988, respectively.

Employer Contributions to THIS Fund. The District also makes contributions to THIS Fund. The employer THIS Fund contribution was 0.63 percent during the years ended June 30,2009 and June 30,2008. For the year ended, June 30,2007, the rate was 0.60 percent. For the year ended June 30,2009, the District paid $257,235 to the THIS Fund. For the years ended June 30,2008 and 2007, the District paid $243,920 and $220,491 to the THIS Fund, respectively, which was 100 percent of the required contribution.

The publicly available financial report of the THIS Fund may be obtained by writing to the Department of Healthcare and Family Services, 201 S. Grand Ave., Springfield, IL 62763-3838.

Retiree's Health Plan The District administers a single-employer defined benefit healthcare plan ("the Retiree's Health Plan"). The plan provides health insurance contributions for eligible retirees and their spouses through the District's group health insurance plan, which covers both active and retired members. Benefit provisions are established through personnel policy guidelines and state that eligible retirees and their spouses receive lifetime healthcare insurance at established contribution rates. The Retiree's Health Plan does not issue a publicly available financial report.

Contribution requirements are established through personnel policy guidelines and may be amended by the action of the governing body. The District makes the same monthly health insurance contribution on behalf of the retiree as it makes on behalf of all other active employees during that year. Retiree healthcare benefits are funded on a pay as you go basis. For fiscal year 2009, total member contributions are $490,656. Administrative costs of the Retiree's Health Plan are paid by the District. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30,2009

Capital Leases. The District has entered into lease agreements as lessee for financing the acquisition of copiers. These lease agreements qualify as capital leases for accounting purposes and, therefore, the assets and obligations have been recorded at the present value of the future minimum lease payments as of the inception date. At June 30,2009, $586,544 of amounts included in capital assets were acquired via capital leases. The obligations for the capital leases will be repaid from the Debt Service Fund. The future minimum lease obligations and the net present value of these minimum lease payments as of June 30,2009, are as follows:

Amount

2010 $ 155,344 201 1 82,492 2012 48.832 Total minimum lease payments 286,668 Less: amount representing interest (20.707) Present value of minimum lease payments

The District is exposed to various risks of loss related to employee health benefits; workers' compensation claims; theft of, damage to, and destruction of assets; and natural disasters. The District has purchased insurance from private insurance companies for general liability, workers' compensation and other coverages not included below. Premiums have been recorded as expenditures in the appropriate funds. There have been no significant i reductions in insurance coverage from coverage in the prior years. Settled claims resulting from these risks have not exceeded insurance coverage in any of the past three years.

The District is a member of various joint agreements that provide certain special education services to residents of many school districts. The District believes that because it does not control the selection of the governing authority, and because of the control over employment of management personnel, operations, scope of public service, and special financing relationships exercised by the joint agreement governing boards, these are not included as component units of the District.

Teachers' Health Insurance Security The District participates in the Teacher Health Insurance Security (THIS) Fund, a cost-sharing, multiple- employer defined benefit postemployment healthcare plan that was established by the Illinois legislature for the benefit of Illinois public school teachers employed outside the city of Chicago. The THIS Fund provides medical, prescription, and behavioral health benefits, but does not provide vision, dental, or life insurance benefits to annuitants of the Teachers' Retirement System (TRS). Annuitants may participate in the state administered participating provider option plan or choose from several managed care options. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30,2009

TRS members include all active nonannuitants that are employed by a TRS-covered employer to provide services for which teacher certification is required. The active member contribution rate for the year ended June 30,2009 was 9.4 percent of creditable earnings. These contributions, which may be paid on behalf of the employees by the employer, are submitted to TRS by the District. The District's payroll for the year ended June 30,2009, included $40,830,976 reported as creditable earnings to TRS. The active member contribution rate was also 9.4 percent for the years ended June 30,2008 and 2007.

On BehalfContributions. The State of Illinois also makes contributions directly to TRS on behalf of the District's TRS-covered employees. For the year ended June 30,2009, State of Illinois contributions were based on 17.08 percent of creditable earnings not paid from federal funds, and the District recognized revenue and expenditures of $6,973,93 1 in pension contributions that the State of Illinois paid directly to TRS. For the years ended June 30,2008 and 2007, the State of Illinois contributions rates as percentages of:creditable earnings not paid from federal funds were 13.1 1 percent ($5,062,759) and 9.78 percent ($3,594,006), respectively. The state contributions to TRS for the years ended June 30,2009 and June 30,2008 were based on an actuarial formula. The state contribution for the years ended June 30,2007 was based on dollar amounts specified by the statute and were not actuarially determined.

The District also makes other additional types of employer contributions directly to TRS:

2.2 Formula Contributions. For the years ended June 30,2009,2008 and 2007, the District contributed 0.58 percent of creditable earnings for the 2.2 formula change. This rate is specified by statute. Contributions for those years were $236,820, $223,982 and $213,141, respectively. These contributions were 100 percent of the required contributions.

Federal and Trust Fund Contributions. When TRS members are paid from federal and special trust funds administered by the District, there is a statutory requirement for the District to pay an additional TRS contribution from those funds. Under a policy adopted by the TRS Board of Trustees that was first effective in the fiscal year ended June 30,2006, employer contributions for employees paid from federal and special trust funds will be the same as the state contribution rate to TRS.

For the year ended June 30,2009, the employer pension contribution was 17.08 percent of salaries paid from federal and special trust funds. For the years ended June 30,2008 and 2007, the employer pension contribution was 13.11 and 9.78 percent, respectively, of salaries paid from those funds. For the year ended June 30,2009, there were no salaries paid from federal and special trust funds. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30,2009

Early Retirement Option. The District is also required to make one-time employer contributions to TRS for members retiring under the Early Retirement Option (ERO). The payments vary depending on the age and salary of the member and under which ERO program the member retirees. Under Public Act 94-0004, a "Pipeline ERO" program is provided for members to retire under the same terms as the ERO program that expired June 30,2005, provided they meet certain conditions and retire on or before July 1,2007. If members do not meet these conditions, they can retire under the "Modified ERO" program which requires higher member and employer contributions to TRS. Also, under Modified ERO, Public Act 94-0004 eliminates the waiver of member and employer ERO contributions that had been in effect for members with 34 years of service (unless the member qualifies for the Pipeline ERO). Under the Pipeline ERO, the maximum District contribution was 100 percent of the member's highest salary used in the final average salary calculation. Under the Modified ERO, the maximum District contribution is 117.5 percent. Both the 100 percent and the 117.5 percent maximums apply when the member is age 55 at retirement. For the year ending June 30, 2009, the District paid $30,504 to TRS for District contributions under the ERO programs, which was 100 percent of the required contributions. For the years ended June 30,2008 and 2007, the District paid $9,411 and $194,050, respectively, in ERO contributions. These contributions were 100 percent of the required contributions.

TRS financial information, an explanation of TRS's benefits; and descriptions of member, employer and state funding requirements, can be found in the TRS Comprehensive Annual Financial Report for the year ended June 30,2008. The report for the year ended June 30,2009, is expected to be available in late 2009. The reports may be obtained by writing to the Teachers' Retirement System of the State of Illinois, P.O. Box 19253,2815 West Washington Street, Springfield, IL 62794-9253. The most current report is also available on the TRS Web site at www.trs.illinois.gov.

Illinois Municipal Retirement Fund The District's defined benefit pension plan, Illinois Municipal Retirement (IMRF), provides retirement, disability, annual cost of living adjustments and death benefits to plan members and beneficiaries. IMRF is an agent multiple employer pension plan that acts as a common investment and administrative agent for local governments and school districts in Illinois. The Illinois Pension Code establishes the benefit provisions of the plan that can only be amended by the Illinois General Assembly. IMRF issues a financial report that includes financial statements and required supplementary information. The report may be obtained at www.imrf.org/pubs/pubs~homepage.htmor by writing to the Illinois Municipal Retirement Fund, 221 1 York Road, Suite 500, Oak Brook, Illinois 60523.

Employees participating in IMRF are required to contribute 4.50 percent of their annual covered salary. The member rate is established by state statute. The District is required to contribute at an actuarially determined rate. The employer rate for calendar year 2008, based on the 2006 valuation, was 6.76 percent of payroll. The employer contribution requirements are established and may be amended by the IMRF Board of Trustees. IMRFYsunfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on a closed basis (overfunded liability amortized on open basis). The amortization period at December 3 1,2008 was 24 years. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO BASIC FINANCIAL STATEMENTS

For December 3 1,2008, December 3 1,2007 and December 3 1,2006 the District's annual pension cost of $794,964, $741,277 and $679,003, respectively, was equal to the District's required and actual contributions. The required contribution was determined as part of the December 3 1,2006, actuarial valuation using the entry age actuarial cost method. The actuarial assumptions included (a) 7.50% investment rate of return (net of administrative expenses), (b) projected salary increases of 4.00% a year, attributable to inflation, (c) additional projected salary increases ranging from 0.4% to 11.6% per year depending on age and service, attributable to senioritylmerit, and (d) post-retirement benefit increases of 3% annually. The actuarial value of IMRF assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a five-year period with a 20% corridor. The assumptions used for the 2008 actuarial valuation were based on the 2002-2004 experience study. However, the 2008 actuarial valuation information, shown as RSI following the notes to the financial statements, is based on the 2005-2007 experience study.

As of December 3 1,2008, the most recent actuarial valuation date, the Regular plan was 93.88 percent funded. The actuarial accrued liability for benefits was $24,112,175 and the actuarial value of assets was $22,637,390 resulting in an underfunded actuarial accrued liability (UAAL) of $1,474,785. The covered payroll (annual payroll of active employees covered by the plan) was $1 1,759,827 and the ratio of the UAAL to the covered payroll was 12.54 percent.

The schedule of funding progress, presented as RSI following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets in increasing or decreasing over time relative to the actuarial accrued liability for benefits.

As of June 30,2009, the District is committed to approximately $1,542,728 in expenditures in the upcoming years for various construction projects. These expenditures will be paid through the available fund balances and building bonds already issued.

The District is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the District's attorneys, the resolution of these matters will not have a material adverse effect on the financial condition of the District.

The District has received federal and state grants for specific purposes that are subject to review and audit by the grantor agencies. Such audits could lead to requests for reimbursements to the grantor agency for expenditures disallowed under terms of the grants. Management believes such disallowances, if any, would be immaterial. This page has been intenfionally leff blank. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 ILLINOIS MUNICIPAL RETIREMENT FUND SCHEDULE OF EMPLOYER'S CONTRIBUTIONS AND ANALYSIS OF FUNDING PROGRESS JUNE 30,2009

Actuarial Valuation Annual Pension Percentage of Net Pension Date Cost (APC) APC Contributed Obligation

Actuarial UAAL as a Actuarial Actuarial Value Accrued Liability Unfunded AAL Percentage of Valuation of Assets (AAL) Entry Age (UAAL) Funded Ratio Covered Payroll Covered Payroll Date (a) (b) . 4b-a) (alb) (c) ((b-a)/c)

Digest of Changes Assumptions The actuarial assumptions used to determine the actuarial accrued liability for 2008 are based on the 2005-2007 Experience Study.

See Auditor's Report and Notes to Required Supplementary Information

-45- NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 SCHEDULE OF FUNDING PROGRESS FOR RETIREE'S HEALTH PLAN JUNE 30,2009

Actuarial UAAL as a Actuarial Actuarial Value Accrued Liability Unfunded AAL Percentage of Valuation of Assets (AAL) Entry Age (UAAL) Funded Ratio Covered Payroll Covered Payroll Date (a) (b) (b-a) (alb) (c) ((b-a)/c)

The year ended June 30, 2008 was the first year of implementation of GASB 45. As such, information for the fiscal year ended June 30, 2007 is not applicable.

See Auditor's Report and Notes to Required Supplementary Information

-46- NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 GENERAL (EDUCATIONAL) FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30,2009 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL Revenues

Local sources General levy Tort immunity levy Summer school - tuition from pupils or parents (in state) Adult - tuition from pupils or parents (in state) Investment income Sales to pupils - lunch Fees Rentals - regular textbook Refund of prior years' expenditures Other Total local sources State sources Special education - private facility tuition Special education - extraordinary Special education - personnel Special education - summer school CTE - Technical education - tech prep CTE - Secondary program improvement Bilingual education - downstate - TPI Driver education School safety & educational improvement block grant Technology - learning technology centers IDOT Safety Other restricted revenue from state sources Total state sources

See Auditor's Report and Notes to Required Supplementary Information (Continued) -47- NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 GENERAL (EDUCATIONAL) FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30,2009 WTH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL Federal sources Title V - Innovation and flexibility formula $ 10,000 $ 1,778 $ (8,222) $ 3,478 Title IV - Safe & drug free schools - formula 12,000 10,296 (1,704) 8,401 Federal - special education - IDEA - flow- throughllow incident 500,000 581,869 81,869 547,810 Federal - special education - IDEA - room & board 320,000 352,131 32,131 487,316 CTE - Perkins -Title IIIE - tech. prep. 60,000 - (60,000) - CTE - Other - 66,352 66,352 56,779 Emergency immigrant assistance - 20,295 20,295 - Title Ill - English language acquisition 5,000 10,266 5,266 21,624 Learn & serve america 15,000 20,226 5,226 6,367 Title II - Teacher quality 80,000 80,235 235 70,259 Medicaid matching funds - administrative outreach 15,000 718 (14,282) 16,051 Other restricted revenue from federal sources 5,000 5,699 699 5.163 Total federal sources 1,022,000 1,149,865 127.865 1.223.248 Total revenues 75.724.900 76.385.91 1 661,011 74,028,734 Expenditures

Instruction

Regular programs Salaries Employee benefits Purchased services Supplies and materials Capital outlay Other objects Total Special education programs Salaries Employee benefits Purchased services Supplies and materials Capital outlay Other objects Tuition Total Remedial and supplemental programs K - 12 Salaries Employee benefits Total See Auditor's Report and Notes to Required Supplementary Information (Continued) -48- NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 GENERAL (EDUCATIONAL) FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30,2009 NTHCOMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 -- 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL Adultlcontinuing education programs Salaries $ 486,000 $ 427,719 $ 58,281 $ 418,258 Employee benefits 39,120 39,386 (266) 33,520 Purchased services 96,403 79,005 17,398 78,334 Supplies and materials 21,702 16,770 4,932 17,134 Other objects 2,000 1,008 992 1.510 Total 645.225 563,888 81,337 548,756 CTE programs Purchased services Total Interscholastic programs Salaries Employee benefits Purchased services Supplies and materials Capital outlay Other objects Total Summer school programs Salaries Employee benefits Purchased services Supplies and materials Other objects Total Driver's education programs Salaries Employee beneifts Purchased services Supplies and materials Capital outlay Total Bilingual programs Salaries Employee benefits Purchased services Supplies and materials Other objects Total

See Auditor's Report and Notes to Required Supplementary Information (Continued) NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 GENERAL (EDUCATIONAL) FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30,2009 WTH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL Special education programs K -12 - private tuition Other objects $ - $ 993,863 $ (993,863) $ - Total - 993.863 (993.863) - Total instruction 45,283,967 43,964,024 1.319.943 41,455.950 Support services

Pupils

Attendance and social work services Salaries Employee benefits Purchased services Supplies and materials Other objects Total Guidance services Salaries Employee benefits Purchased services Supplies and materials Capital outlay Other objects Total Health services Salaries Employee benefits Purchased services Supplies and materials Capital outlay Other objects Total Psychological services Salaries Employee benefits Purchased services Supplies and materials Other objects Total

See Auditor's Report and Notes to Required Supplementary Information (Continued) - 50 - NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 GENERAL (EDUCATIONAL) FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30,2009 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL Speech pathology and audiology services Salaries $ 120,200 $ 136,407 $ (16,207) $ I15,695 Employee benefits 4,400 7,054 (2,654) 6,314 Purchased services 5,000 - 5,000 - Supplies and materials - 73 (73) - Total 129.600 143.534 (13.934) 122,009 Other support services - pupils Salaries 97,000 109,583 (12,583) 106,582 Employee benefits 23,516 19,365 4,151 20,838 Purchased services 7,000 4,383 2,617 .977 Supplies and materials 10,200 8,420 1,780 11,019 Capital outlay - - - 7.401

Total 137.716 . 141,751 (4.035) 146.817 Total pupils Instructional staff

Improvement of instructional services Salaries Employee benefits Purchased services Supplies and materials Capital outlay Other objects Total Educational media services Salaries Employee benefits Purchased services Supplies and materials Capital outlay Other objects Non-capitalized equipment Total Assessment and testing Salaries Employee benefits Purchased services Supplies and materials Other objects Total Total instructional staff

See Auditor's Report and Notes to Required Supplementary Information (Continued) - 51 - NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 GENERAL (EDUCATIONAL) FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30,2009 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL General administration

Board of education services Salaries Purchased services Supplies and materials Other objects Total Executive administration services Salaries Employee benefits Purchased services -Supplies and materials Other objects Total Special area administration services Salaries Employee benefits Purchased services Supplies and materials Other objects Total Total general administration School administration

Office of the principal services Salaries Employee benefits Purchased services Supplies and materials Other objects Total Other support services - school administration Salaries Employee benefits Supplies and materials Total Total school administration

See Auditor's Report and Notes to Required Supplementary Information (Continued) - 52 - NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 GENERAL (EDUCATIONAL) FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30,2009 WTH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL Business

Direction of business support services Salaries Employee benefits Purchased services Supplies and materials Other objects Total Fiscal services Salaries Employee benefits Purchased services Supplies and materials Capital outlay Other objects Total Operation and maintenance of plant services Salaries Employee benefits Purchased services Supplies and materials Other objects Total Food services Salaries Employee benefits Purchased services Supplies and materials Capital outlay Total Internal services Salaries Employee benefits Purchased services Supplies and materials Total Total business

See Auditor's Report and Notes to Required Supplementary Information (Continued) NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 GENERAL (EDUCATIONAL) FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30,2009 WTH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL Central

Planning, research, development and evaluation services Salaries $ - $ 153,509 $ (153,509) $ - Employee benefits - 14,776 (14,776) - Purchased services - 553 (553) - Other objects - 144 (144) - Total - 168.982 (168.982) - lnformation services Salaries Employee benefits Purchased services Supplies and materials Other objects Total Staff services Salaries Employee benefits Purchased services Supplies and materials Capital outlay Other objects Total Data processing services Salaries Employee benefits Purchased services Supplies and materials Capital outlay Total Total central Other supporting services Salaries Employee benefits Total Total support services

See Auditor's Report and Notes to Required Supplementary Information (Continued) - 54 - NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 GENERAL (EDUCATIONAL) FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL - NON- GAAP BUDGETARY BASIS FOR THE YEAR ENDED JUNE 30,2009 WlTH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL Community services Salaries Purchased services Supplies and materials Total community services 34.000 31,267 2,733 26,955 Payments to other districts and governmental units

Payments for special education programs Other objects 1,946.000 1,490.508 455,492 1.639.060 Total 1.946.000 1,490.508 455.492 1.639.060 Other payments to in~tategovernmental units Purchased services - - - 13,197 Total - - - 13,197 Total payments to other districts and governmental units 1,946.000 1.490.508 455.492 1,652.257 Debt services

Payments on long term debt Interest on long term debt - - - 11,327 Principal payments on long term debt - - - 150,796 Total - - - 162.123

. Total debt services - - - 162,123 Provision for contingencies 400.000 - 400.000 - Total expenditures 73,507,572 71,128.328 2.379.244 68.930.594 Excess (deficiency) of revenues over expenditures 2,217,328 5.257.583 3,040,255 5,098.140 Other financing sources (uses) Sale or compensation for fixed assets 30,000 11,025 (18,975) 27,646 Other financing sources - capital lease - - -a 31 1,777 Total other financing sources (uses) 30,000 11.025 (18.975) 339.423 Net change in fund balance $ 2.247.328 5,268,608 $ 3.021.280 5,437,563 Fund balance, beginning of year 38,627,733 33.190.170 Fund balance, end of year $ 43.896.341 $ 38,627,733

See Auditor's Report and Notes to Required Supplementary Information (Concluded) - 55 - NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 OPERATIONS AND MAINTENANCE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30,2009 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL Revenues

Local sources General levy $ 5,921,900 $ 5,673,512 $ (248,388) $ 6,192,821 Corporate personal property replacement taxes 1,150,000 165,309 (984,691) 1,257,849 Investment income 220,000 257,662 37,662 324,411 Rentals 375.000 405,000 30.000 306.244 Total local sources 7,966,900 6,501.483 (1,165,417) 8.081.325 State sources General state aid Total state sources Federal sources General state aid - education stabilization - 208.732 208,732 - Total federal sources - 208.732 208,732 - Total revenues 8.566.900 7.416.273 (I.I 50.627) 8.977.931 Expenditures

Support services

Business

Operation and maintenance of plant services Saiaries Employee benefits Purchased services Supplies and materials Capital outlay Other objects Total Total business Total support services Debt services

Payments on long term debt Interest on long term debt - - - 64,594 Principal payments on long term debt - - - 670.000 Total - - - 734,594 Total debt services - - - 734.594

See Auditor's Report and Notes to Required Supplementary Information NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 OPERATIONS AND MAINTENANCE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30,2009 WlTH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL Provision for contingencies $ 51,000 $ - $ 51.000 $ - Total expenditures 10,191,732 7.369.789 Excess (deficiency) of revenues over expenditures (1.624.832) 46.484 Other financing sources (uses) Sale or compensation for fixed assets - - Transfer to debt service fund to pay principal on revenue bonds (690,000) - Transfer to debt service fund to pay interest on revenue bonds (45.000) - Total other financing sources (uses) (735.000) - Net change in fund balance $ (2,359,832) 46,484 Fund balance, beginning of year Fund balance, end of year

See Auditor's Report and Notes to Required Supplementary Information NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 TRANSPORTATION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30,2009 WlTH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL Revenues

Local sources General levy $ 938,300 $ 1,162,773 $ 224,473 $ 91 1,796 Regular transportation fees from pupils or parents (in state) 235,000 242,976 7,976 226,858 Investment income 25,000 20.602 (4,398) 42.238 Total local sources 1.198.300 1.426.351 228,051 1,180,892 State sources Transportation - special education 520.000 518,422 (1,578) 596,234 Total state sources 520,000 518,422 (1.578) 596.234 Total revenues 1.718.300 1,944,773 226,473 1,777,126 Expenditures

Support Services

Business

Pupil transportation services Salaries Employee benefits Purchased services Supplies and materials Capital outlay Total Total business Total support services Debt services

Interest on short term debt Other interest Total Payments on long term debt Principal payments on long term debt Total Total debt services

See Auditor's Report and Notes to Required Supplementary Information

- 58 - NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 TRANSPORTATION FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30,2009 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL Provision for contingencies $ 125.000 $ - $ 125.000 $ - Total expenditures 2,090,200 1,946,643 143,557 1.798.866 Net change in fund balance $ (371,900) (1,870)$ 370.030 (21,740) Fund balance, beginning of year 671,341 693,081 Fund balance, end of year $ 669.471 $ 671.341

See Auditor's Report and Notes to Required Supplementary Information - 59 - NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 MUNICIPAL RETIREMENTISOCIAL SECURITY FUND SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30,2009 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL Revenues

Local sources General levy $ 797,600 $ 787,072 $ (10,528) $ 793,790 Social securitylmedicare only levy 1,481,000 1,463,414 (17,586) 1,479,423 Corporate personal property replacement taxes 63,000 63,000 - 62,000 Investment income 37,000 39,349 2,349 58,573 Total local sources Total revenues Expenditures

Instruction Regular programs Special education programs Adultlcontinuing education programs Interscholastic programs Summer school programs Driver's education programs Bilingual programs Total instruction Support services

Pupils Attendance and social work services Guidance services Health services Psychological services Speech pathology and audiology services Other support services - pupils Total pupils Instructional staff Improvement of instructional staff Educational media services Assessment and testing Total instructional staff General administration Executive administration services Special area administration services Total general administration

See Auditor's Report and Notes to Required Supplementary Information NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 MUNICIPAL RETIREMENTISOCIAL SECURITY FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30,2009 WlTH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND ' VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL School administration Office of the principal services Other support services - school administration Total school administration Business Direction of business support services Fiscal services Operations and maintenance of plant services Pupil transportation services Food services Internal services Total business Central Planning, research, development and evaluation services lnformation services Staff services Data processing services Total central 46,993 101.827 (54.834) 46.782 Other supporting services 5.314 4,419 895 4.249 Total support services 1.443.175 1.312.878 130.297 1,246,645 Total expenditures 2.464.500 2.342.753 121.747 2.21 0.266 Net change in fund balance $ (85.900) 10,082 $ 95,982 183,520 Fund balance, beginning of year 1,305,050 1,121.530 Fund balance, end of year $ 1,315,132 1.305.050

See Auditor's Report and Notes to Required Supplementary Information

- 61 - NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 WORKING CASH FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30,2009 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL Revenues

Local sources Investment income Total local sources Total revenues Expenditures

Total expenditures Net change in fund balance Fund balance, beginning of year Fund balance, end of year

See Auditor's Report and Notes to Required Supplementary Information NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

STEWARDSHIP,COMPLIANCE AND ACCOUNTABILITY Budgetary Data Except for the exclusion of on-behalf payments from other governments, discussed below, the budgeted amounts for the Governmental Funds are adopted on the modified accrual basis, which is consistent with accounting principles generally accepted in the United States of America. The Board of Education follows these procedures in establishing the budgetary data reflected in the general purpose financial statements: 1. The Administration submits to the Board of Education a proposed operating budget for the fiscal year commencing July 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted and the proposed budget is available for inspection to obtain taxpayer comments. 3. Prior to September 30, the budget is legally adopted through passage of a resolution. By the last Tuesday in December, a tax levy resolution is filed with the county clerk to obtain tax revenues. 4. Management is authorized to transfer budget amounts, provided funds are transferred between the same function and object codes. The Board of Education is authorized to transfer up to a legal level of 10% of the total budget between functions within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the Board of Education, after following the public hearing process mandated by law. 5. Formal budgetary integration is employed as a management control device during the year for all governmental funds. 6. All budget appropriations lapse at the end of the fiscal year. The budget amounts shown in the financial statements are as originally adopted because there were no amendments during the past fiscal year. Budget Reconciliations The Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds (GAAP basis) includes "on-behalf' payments received and made for the amounts contributed by the State of Illinois for the employer's share of the Teachers Retirement System pension and Teacher Health Insurance Security Fund retiree health insurance. The District does not budget for these amounts. The differences between the budget and GAAP basis are as follows: Revenues Expenditures

General (Educational) Fund Budgetary Basis To adjust for on-behalf payments received To adjust for on-behalf payments made General (Educational) Fund GAAP Basis

See Auditor's Report

-63- This page has been intentionally left blank. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30,2009 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL Revenues

Local sources General levy $ 3,077,600 $ 3,185,585 $ 107,985 $ 3,407,326 Corporate personal property replacement taxes - 926,257 926,257 - Investment income 63.000 57.242 (5,758) 89,678 Total local sources 3.140.600 4.169.084 1,028.484 3,497.004 Total revenues 3,140,600 4.169.084 1,028.484 3,497.004 Expenditures

Debt services

lnterest on short term debt Other interest on short term debt - 12,683 (12.683) Total - 12,683 (12,683) - Payments on long term debt Interest on long term debt 438,800 587,667 (148,867) 581,751 Principal payments on long term debt 2.768,200 3,597,113 (828.91 3) 3.060.080 Total Other debt service Other objects Total 10,000 1,000 9,000 3,287 Total debt services Total expenditures Net change in fund balance Fund balance, beginning of year Fund balance, end of year NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30,2009 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL Revenues

Local sources Investment income $ - $ 2.973 $ 2,973 $ - Total local sources Total revenues Expenditures

Support services

Business

Facilities acquisition and construction service Purchased services 9.473 (9,473) - Total - 9.473 (9.473) - Total business Total support services Total expenditures - 9,473 (9,473) - Excess (deficiency) of revenues over expenditures - (6,500) (6,500) - Other financing sources (uses) Principal on bonds sold Premium on bonds sold Total other financing sources (uses) - 2,247.811 2,247.81 1 - Net change in fund balance $ - 2,241,311 $ 2.241 -311 Fund balance, beginning of year Fund balance, end of year NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 FIRE PREVENTION AND LIFE SAFETY FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET TO ACTUAL FOR THE YEAR ENDED JUNE 30,2009 WlTH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30,2008 2009 ORIGINAL AND VARIANCE WITH 2008 FINAL BUDGET ACTUAL FINAL BUDGET ACTUAL Revenues

Local sources Investment income $ 150,000 $ 17.683 $ (132.317) $ 125,031 Total local sources 150,000 17.683 (132.317) 125,031 Total revenues 150.000 17,683 (132.317) 125.031 Expenditures support services

Business

Operation and maintenance of plant services Purchased services Capital outlay Total Total business Total support services Debt services

Interest on short term debt Other interest on short term debt Total Total debt services Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses) Principal on bonds sold Premium on bonds sold Total other financing sources (uses) Net change in fund balance Fund balance, beginning of year Fund balance, end of year This page has been intentionally left blank. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30,2009 BALANCE BALANCE JUNE 30, JUNE 30, 2008 INCREASES DECREASES TRANSFERS 2009 Assets

Cash and investments $ 3,517,398 $ 8,782,402 $ 9,496,528 $ - $ 2,803,272 Accounts receivable 238,511 155,383 393,894

Total assets

Liabilities

Due to student groups ACLU ADVISERY - M COBB ADVISERY - NIELSEN ADVISERY - T KOULENTES ADVISERY -WOODRUFF ADVISOR HELPERS ADVISORY FEES AFRICAN-AMERICAN CLUB AGE GROUP SWIM CLUB AID IN AFRICA AIDS COALITION ALUMNI SPECIAL OLYMPICS AMESTY INTERNATIONAL ANIMALS PROTECTION CLUB ANlME CLUB AP TESTS ARCHERY ARMENIAN CLUB ART DEPARTMENT ART FEES ASST PRINCIPAL ASTRONOMY ATHLETICS AUTOMOTIVE DESIGN BIOLOGY CLUB BOATHOUSE PROJECT BOOKSTORE CREDITS BOOSTER CLUB BRIDGE CLUB BRUCE JAMES SCHOLARSHIP BUSINESS ED DEPARTMENT BUSINESS OFFICE CASE CALLIOPE CAREER CAMP CELTIC CLUB CENTRAL SUBURBAN LEAGUE CEP TEST CEREAL CLUB CHEERLEADERS CHESS CLUB CHICAGO MATH TEAM CHINA TRIP CHINESE CALLIGRAPHY CHINESE CLUB CHINESE YO-YO CLUB CHOIRIOPERA CHORALIERS CLASS DUES CLASS OF 2007 CLASS OF 2008 NEW TRIER TOWNSHIP HlGH SCHOOL DISTRICT 203 AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30,2009 BALANCE BALANCE JUNE 30, JUNE 30, 2008 INCREASES DECREASES TRANSFERS 2009 CLASS OF 2009 $ 16,382 $ 106,728 $ 2,764 $ (120,346) $ CLASS OF 2010 23,226 - (1 6,024) 7,202 CLASS OF 201 1 12,408 775 10,865 22,498 CLASS OF 2012 2,974 9,873 12,847 CLASS OF 2014 200 4,862 5,062 CLIMB HIGH 464 (35) 429 CLUB ISRAEL 1,962 1,309 855 (293) 2,123 COLLEGE COUNSELING FEES 45,236 31,146 24,293 (1 7,168) 34,921 COMMERCE P-CARD PROGRAM 5,427 5,427 COMMITTED TO ACTION 2,374 3,686 5,788 2,098 2,370 COMMUNITY RESPONSE 4,643 1,230 358 7,308 12,823 COMMUNITY SWIM 20,487 22,089 1,602 COMPUTER CLUB 50 (50) COMPUTER SALES 67,108 66,343 (765) COSTA RlCA TRIP 33,340 1,950 34,995 (295) COUNTRY WESTERN CLUB 199 199 CYCLING CLUB 200 250 450 DANCE TEAM 11,079 32,655 13,985 (1 9,038) 10,711 DDR CLUB 76 36 124 236 DEBATE 28,562 42,429 26,893 (42,147) 1,951 DECA 662 8,153 5,805 (1,096) 1,914 DIRECTOR'S CLUB 274 274 DJ CLUB 51 299 299 51 DRIVERS ED DEPARTMENT 1,229 295 (345) 1,179 DRIVERS ED FEES 67,043 74,904 7,861 DUNGEONS & DRAGONS 150 500 362 12 ELS SUMMER PROGRAM 33,486 26,560 7,431 (22,737) 29,878 ELYSSA'S MISSION 1,629 (633) 996 ENGLISH DEPARTMENT 7,646 2,993 2,052 (3,076) 5,511 ENGLISH FEES 2,834 11,328 8,668 174 ENGLISH SUNSHINE FUND ENVIRONMENTAL CLUB 274 2,062 750 (1 9) 1,567 EVERYWHERE BUT HERE 77 888 81 1 EXCURSIONS 23,607 33,590 9,983 FESTIVAL DE LA FRANCE 510 770 1,200 450 FILIPINOIAMERICAN CLUB 420 153 234 FINANCIAL AID TEXT 7,121 13,114 FOCUS 969 FOLLETT 54,790 176,176 121,386 FOREIGN AFAIRS 75 75 FRANCOFOUS 283 (98) FREE TIBET 100 FRENCH CLUB 285 285 FRENCH TRIP 16,414 52,570 67,674 14,629 FRESHMAN SENATE 26,769 16,552 5,610 (28,941) FRESHMAN SENATE REPS 2,175 69 69 FRISBEE CLUB 1,500 1,500 FROSHADVENTUREPROGRAM 10,600 9,171 6,333 FUTURE LEADERS 1,610 1,610 GARDEN DEPARTMENT NEWS 2,551 (157) GERMAN CLUB 14 306 GI NETWORK 74 8,147 718 (6,673) GIRLS CLUB 69,518 56,348 54,469 (1 9,087) GLASS GUILD 899 1,064 GLOBAL EXCHANGE 49,452 26,837 25,031 9,960 GLOBAL RESPONSIBILTY 11,490 51,420 40,413 GOLF LEAGUE 260 GRADUATION PARTY 6,409 85,510 79,101 GREENS ACTION 254 HARVARD MODEL 50 HEALTH 659 HEART TO HAND 659

- 68 - (Continued) NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30,2009 BALANCE BALANCE JUNE 30, JUNE 30, 2008 INCREASES DECREASES TRANSFERS 2009 HELLENIC CLUB $ HELPING HAND HOME EC DEPARTMENT HOME EC FEES ID EQUIPMENT lGSS IN THE MOOD FOR FOOD INNDO-PAK CLUB lNTERACT INTEREST INTERNATIONAL CLUB lNTRAMU RALS INTRO TO BUSINESS INTRO TO BUSINESS IT DEPARTMENT ITALY TRIP JAPAN TRIP JAPANESE CLUB JAZZ ENSEMBLE JETS JR THOMSON MEMORIAL KENWOOD-NTHS KIGGINS FUND KIWE DEPARTMENT KlWE FEE KlWE LOCKER ROOM KOREAN CLUB LAGNIAPPE LANGUAGE TESTS LATIN CLUB LATIN SCHOLARSHIP LIBRARY LIBRARY COPIER LINER NOTES LOAN BOOKS LOGOS MARKETING 1 MATH CLUB MATH DEPARTMENT MEDICAL PAYMENTS METROPOLITAN CLUB MILlTARY HISTORY MlNOW FUND MODEL UN MODERN LANGUAGE FEES MU ALPHA THETA MUDSLINGERS MUSlC DEPARTMENT MUSIC FEES MUSIC INSTRUMENTS MUSIC SCHOLARSHIP NATIONAL SPANISH CLUB NC DANCE ENSEMBLE NC FRENCH WEEK NC GIRLS CLUB NC PEP CLUB NC SCIENCE OLYMPIAD BLUE NC SOCIAL SERVICE NC TRI SHIP NC VENDING NEW TRIER ART CLUB NEW TRIER NEWS

-69- (Continued) NEW TRIER TOWNSHIP HlGH SCHOOL DISTRICT 203 AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30,2009 BALANCE BALANCE JUNE 30, JUNE 30, 2008 INCREASES DECREASES TRANSFERS 2009 NEW TRIER RELIEF FUND $ 3,070 $ - $ 1,800 $ (360) $ 910 NO REASON 77 77 NOW HABITAT FOR HUMANITY 70,952 154 14,724 (56,382) NOLA TRIP 35,402 35,402 NT AT OXFORD 45,988 100 48,462 2,374 NT LEARNING CENTER 6,071 420 6,000 5,629 6,120 NTSA SERVICE PROJECT 240 (90) 150 NTTC 286,090 287,518 75,809 74,381 NTX CLASS FEES 2,052 17,398 16,600 1,254 NTX CREDIT TUITION 544,637 501,240 (43,397) OFF THE WALL 2,434 1,990 2,568 (918) 938 OPERATING FUND 1,168 (1,168) (0) ORCHESTRA 7,050 1,967 4,150 (2,613) 2,254 ORIGAMI 50 50 OUT OF THE BOX 1,472 680 1,315 2,107 PARENTS ASSOCIATION 2,532 2,532 PARKING 44,278 132,155 164,623 (5,823) 5,987 P-CARD PROGRAM 1,736,658 1,645,142 (91,516) PEER HELPING 7,750 418 3,322 2,624 7,470 PEER MEDIATION 2,447 74 445 2,818 PEP BAND 2,038 2,038 PEP CLUB 5,634 19,325 18,781 15,244 21,422 PEP CLUB STORE 315 315 PERFORMING ARTS DEPT 31,172 29,281 40,672 330 20,111 PERSIAN-IRANIAN 39 370 33 1 PERSONAL UPS 526 322 (204) PHOTOGRAPHY CLUB 541 23 23 541 PHYSICS DAY 6,059 6,059 PING PONG CLUB 368 119 48 138 577 PINTO GALL0 192 (66) 126 PLAN TEST 17,944 (137) 175 (9,056) 8,577 POETRY CLUB 1,387 562 16,287 16,627 2,289 POLISH CLUB 1,931 236 228 165 2,104 POST HIGH SCHOOL COUNSEL 270 10,560 10,290 POWER PROGRAM 7,404 18,783 22,990 (1,304) 1,893 PROM 78,064 109,510 3 1,446 PSAT TEST 6,517 17,032 10,860 3,026 15,715 PUP CLUB 286 286 QUE PASLA 1,500 1,500 READING ASSESSMENT 13,286 12,030 11,178 2,914 17,052 REGISTRAR 16,741 3,258 5 (6) 19,988 REIMBURSABLE GRANTS 11,781 59,540 41,779 (11,090) 18,452 RETIREMENT DINNER 7,770 15,225 7,455 RETURNEDCHECK 6,806 2,784 (4,022) (0) ROBOTICS CLUB 308 192 24 140 ROWING CLUB 1,058 83,291 86,227 1,878 RUN TO REMEMBER 8,937 6,786 1,891 (3,895) 9,937 RUSSIAN CLUB 72 72 STOP 98 98 SAILING CLUB 3,750 (3,750) SALSA 662 280 (177) 765 SAT PREP 45,232 49,195 62,494 14,311 46,244 SCHOLASTIC BOWL 1,184 6,665 5,241 (1,121) 1,487 SCIENCE DEPARTMENT 640 3,227 3,644 (203) 20 SCIENCE FEES 19,446 171,662 72,590 (97,847) 20,671 SCIENCE OLYMPIAD BLUE 2,881 11,492 3,149 (3,195) 8,029 SECOND LOOK 4,050 (4,050) SENIOR PROJECT 3,400 1,563 (1,837) SIGN LANGUAGE 63 37 100 SIMPSONS 667 667 SISTER CITIES 250 250 SNOWBOARD & SKI CLUB 7 345 345 7

- 70 - (Continued) NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30,2009 BALANCE BALANCE JUNE 30, JUNE 30, 2008 INCREASES DECREASES TRANSFERS 2009 SNOWBOUND CLUB SOCIAL SERVICE SOCIAL SERVICE ALBANY SOCIAL SERVICE NEW LIFE SOCIAL STUDIES DEPARTMENT SOCIAL STUDIES FEES SOLAR CAR SOUNDTRACKS SPANISH CLUB SPEAKING OUT SPECIAL ED DEPARTMENT SPECIAL OLYMPICS SPRINGFEST RESERVE SSO SCHOLARSHIP STATE TOURNAMENT STONE GAMES STRATEGIC GAMING STUDENT ACTIVITIES STUDENT ALLIANCE STUDENT ALLIANCE REPS STUDENT ALLIANCE RESERVE STUDENT DIRECTORY FEES STUDENT INSURANCE FEE STUDENT TUTORS SUMMER SCHOOL SUPPLIES FOR DREAMS SWING & SOCIAL DANCE SWING CHOIR SYNCH SWIM TABLE TOP TACTICS TARP TECH CORP TECH ED DEPARTMENT TECH ED FEES THE JOURNAL THOMSON COMMISSION TREVIA TREVIAN REPUBLICS TREVIAN WRESTLING TRI SHIP USHER CORPS VENDING VIDEO YEARBOOK VIP WASHINGTON DC WCA FEES WEB FEES WEB FOOD SERVICE WEB SUMMER SCHOOL WEB TRANSPORTATION WELLNESS PROGRAM WILDERNESS TRIP WIND ENSEMBLE WNTH WNTH CITRUS SALE XlBUS CONCERT YOUNG DEMOCRATS ZOMBI SURVIVAL CLUB 385 385 Total Due to Student Groups $ 2,006,727 $ 8,627,144 $ 8,825,523 $ - $ 1,808,348 Due to scholarship fund SCHOLARSHIP FUND 1,749,182 310,626 670,990 1,388,818 Total Liabilities - 71 - (Concluded) This page has been intentionally left blank. Statistical Section

This part of the District's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the District's overall financial health.

Contents

Financial Trends

These schedules contain trend information to help the reader understand how the District's financial performance and well-being have changed over time.

Revenue Capacity

These schedules contain information to help the reader assess the District's most significant local revenue source, the property tax.

Debt Capacity These schedules present information to help the reader assess the affordability of the District's current levels of outstanding debt and the District's ability to issue additional debt in the future.

Demographic and Economic Information

These schedules offer demographic and economic indicators to help the reader understand the environment within the District's financial activities take place.

Operating Information

These schedules contain information about the District's service and resources to help the reader understand how the District's financial information relates to the services the District provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The District implemented Statement 34 in 2003; schedules presenting government-wide information include information beginning in that year. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NET ASSETS BY COMPONENT LAST SEVEN FISCAL YEARS

Governmental activities Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activities net assets

NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 CHANGES IN NET ASSETS LAST SEVEN FISCAL YEARS

Expenses Instruction: Regular programs Special programs Other instructional programs State retirement contributions Support services: Pupils Instructional staff General administration School administration Business Transportation Operations and maintenance Central Other supporting services Community services Nonprogrammed charges - excluding special education Interest and fees Total expenses

Program Revenues Charges for services Instruction: Regular programs Other instructional programs Support services: Business Transportation Operations and maintenance Operating grants and contributions Capital grants and contributions Total program revenues

Net (expense)lrevenue

General revenues Taxes: Real estate taxes, levied for general purposes Real estate taxes, levied for specific purposes Real estate taxes, levied for debt service Personal property replacement taxes State aid-formula grants Investment earnings Miscellaneous Total general revenues Extraordinary items Total general revenues and special items Change in net assets

NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 FUNDBALANCESOFGOVERNMENTALFUNDS LAST TEN FISCAL YEARS

General Fund Reserved Unreserved Total general fund

All other governmental funds Reserved $ - $ - $ - $ - $ - Unreserved, reported in: Special revenue funds 15,360,304 15,144,599 13,476,495 10,952,902 7,486,943 Debt service fund 2,025,520 2,054,899 2,203,013 1,936,952 1,966,970 Capital projects fund 4,593,029 81,288 1,965,020 1,I 26,537 5,737,843

Total all other governmental funds $ 21,978,853 $ 17,280,786 $ 17,644,528 $ 14,016,391 $ 15,191,756

NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 GOVERNMENTAL FUNDS REVENUES LAST TEN FISCAL YEARS

Local Sources Property taxes $ 81,114,434 $ 78,872,018 $ 74,796,279 $ 75,036,895 $ 59,176,308 Replacement taxes 1,154,566 1,319,849 1,234,228 1,131,268 892,547 Tuition 1,404,067 1,296,229 1,330,926 1,404,831 1,259,956 Earnings on investments 1,807,187 2,700,738 3,070,669 1,951,924 995,738 Other local sources 2,670,425 2,561,087 2,823,326 2,428,569 2,271,625 Total local sources 88,150,679 86,749,921 83,255,428 81,953,487 64,596,174

State sources General state aid 706,058 896,606 887,240 862,125 884,585 Other state aid 9,552,118 7,598,385 5,247,873 4,049,605 5,339,961 Total state sources 10,258,176 8,494,991 6,135,113 4,911,730 6,224,546

Federal sources 1,358,597 1,223,248 1,063,506 1,020,073 1,015,148

Total

NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 GOVERNMENTAL FUNDS EXPENDITURES AND DEBT SERVICE RATIO LAST TEN FISCAL YEARS

Current: Instruction Regular programs $ 29,727,276 $ 28,757,394 $ 27,494,692 $ 26,002,784 $ 23,878,662 Special programs 7,796,129 . 7,033,056 6,283,006 6,143,258 5,633,968 Other instructional programs 7,172,935 6,508,139 6,297,766 5,816,482 5,396,727 State retirement contributions 7,316,911 5,387,146 3,594,006 2,456,198 3,916,627 Total instruction 52,013,251 47,685,735 43,669,470 40,418,722 38,825,984

Supporting Services Pupils Instructional staff General administration School administration Business Transportation Operations and maintenance Central Other supporting services Total supporting services 33,212,676 31,686,805 30,083,739 28,917,249 27,292,494

Community services

Nonprogrammed charges

Total current

Other: Debt service: Principal Interest Capital outlay Total Other

Total

Debt service as a percentage of noncapital expenditures

NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 GOVERNMENTAL FUNDS OTHER FINANCING SOURCES AND USES AND NET CHANGE IN FUND BALANCES LAST TEN FISCAL YEARS

Excess of revenues over (under) expenditures $ 3,840,959 $ 4,734,353 $ 4,104,473 $ 1,272,820 $ (5,576,962)

Other financing sources (uses) Principal on.bonds sold 6,085,000 - 3,735,000 17,153,637 Premium on bonds sold 29,691 - 65,093 46,021 Accrued interest on bonds sold - - 5,471 - - Payments to escrow agent - - - - (9,095,294) Sale of capital assets 11,025 27,691 15,833 - 2,646 Capital lease proceeds - 311,777 201,659 - 77,963 Total 6,125,716 339,468 4,023,056 - 8,184,973

Extraordinary items - - - 2,856,000 -

Net change in fund balances $ 9,966,675 $ 5,073,821 $ 8,127,529 $ 4,128,820 -$ 2,608,011

NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 ASSESSED VALUATION AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN LEVY YEARS

LEVY ASSESSED VALUATION YEAR RESIDENTIAL FARMS COMMERCIAL INDUSTRIAL RAILROAD

Source: Cook County Clerk Note: The county assesses property at approximately 33.3% of actual value for all types of real property. Estimated actual value is calculated by dividing assessed value by that percentage. Tax rates are per $1 00 of assessed value. Note: 2006 is the most recent information available. TOTAL TOTAL ESTIMATED LESS: ASSESSED DIRECT ACTUAL EXEMPTIONS VALUE RATE VALUE NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 PROPERTY TAX RATES - ALL DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN TAX LEVY YEARS

District direct rates Educational Tort immunity Operations and maintenance Bond and interest Transportation Illinois municipal retirement Social security Life Safety Total direct

Overlapping rates Cook County Cook County Forest Preserve Metropolitan Water Reclamation North Shore Mosquito Abatement New Trier Township Road and Bridge Village of Wilmette Wilmette Public Library Wilmette Park District School District 39 Suburban TB Sanitaium Oakton Community College 535

Total direct and overlapping rate

Source: Cook County Clerk Note: Tax rates are per $100 of assessed value. Note: 2007 is the most recent information available.

NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 PRINCIPAL PROPERTY TAXPAYERS IN THE DISTRICT CURRENT YEAR AND TEN YEARS AGO

PERCENTAGE OF 2007 TOTAL 2007 EQUALIZED EQUALIZED ASSESSED ASSESSED TAXPAYER VALUATION VALUATION

Kraft General Foods Edens Plaza Freed 1630 Sheridan Corp Willow Hill Executive Center . Plaza Del Lago Bonstores Realty Two College of America Pathologists Northfield Plaza Property L J Thalmann Co Albertsons Property Tax

Total

PERCENTAGE OF 1997 TOTAL 1997 EQUALIZED EQUALIZED ASSESSED ASSESSED Taxpayer VALUATION VALUATION

Kraft General Foods Edens Plaza Joseph Freed Associates Plaza Del Lago Inc A Goldner & Associates CPS Department Store 1630 Sheridan Corp. First Chicago College of America Pathologists L J Thalmann Co. School District 203

Total $ 103,359,203 - 4.64%

Source: Cook County Clerk, 2007 is the most current information available and 1997 is the most relevant information to nine years ago as 1998 information is not available. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN LEVY YEARS

COLLECTED WITHIN THE TAXES LEVIED FISCAL YEAR OF THE LEVY COLLECTIONS IN TOTAL COLLECTIONS TO DATE LEVY FOR THE PERCENTAGE SUBSEQUENT PERCENTAGE

YEAR , LEVY YEAR AMOUNT OF LEVY YEARS AMOUNT OF LEVY

Source: Cook County Clerk NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 RATIO OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS

GENERAL ALTERNATE OBLIGATION REVENUE CAPITAL YEAR BONDS BONDS LEASES TOTAL

Note: See Demographic and Economic Statistics table for personal and population data. PERCENTAGE OUTSTANDING OF PERSONAL DEBT PER INCOME CAPITA NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST TEN FISCAL YEARS

LESS: LESS: AMOUNTS AMOUNTS NET GENERAL AVAILABLE ALTERNATIVE AVAILABLE GENERAL FISCAL BONDED TOREPAY REVENUE TO REPAY BONDED YEAR DEBT PRINCIPAL DEBT PRINCIPAL DEBT PERCENTAGE OF NET GENERAL BONDED DEBT NET GENERAL / TO ESTIMATED BONDED DEBT ( ACTUAL VALUATION PER CAPITA This page has been intentionally left blank. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 COMPUTATION OF DIRECT AND OVERLAPPING DEBT JUNE 30,2009

NET DIRECT AND DEBT OVERLAPPING OVERLAPPING GOVERNMENTAL JURISDICTION OUTSTANDING PERCENT DEBT

Overlapping debt: County Cook County Cook County Forest Preserve Metropolitian Water Reclamation District

School Districts School District 29 School District 35 School District 36 School District 37 School District 38 School District 39

Park Districts Glencoe Park District 14,295,000 100.00% 14,295,000 Glenview Park District 50,800,000 4.88% 2,479,040 Wlmette Park District 24,560,000 100.00% 24,560,000 Wnnetka Park District 2,770,000 100.00% 2,770,000

Municipalities Village of Glencoe Village of Glenview Village of Kenilworth Village of Northbrook Village of Wilmette Village of Winnetka

Miscellaneous Glencoe Special Service Area - Hogarth Lane Glenview Special Service Area 22

Total overlapping debt

Direct debt: School District 203

Total Direct and Overlapping Debt

NOTE: Percent applicable to School District calculated using assessed valuation of the School District area value contained within the noted governmental unit divided by assessed valuation of the governmental unit.

Overlapping governments with no outstanding debt are not reflected.

Source: Cook County Clerk - 94 - NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS

Legal Debt Margin Calculation for Fiscal Year 2008

Assessed Valuation

Debt Limit - 6.90% of Assessed Valuation

Total Debt Outstanding

Less: Exempted Debt

Net Subject to 6.9% Limit

Total Debt Margin

Debt Limit $ 455,374,218 $ 430,602,591 $ 325,.600,711 $ 325,119,377 $ 302,153,282 Total Net Debt Applicable to Limit 21,171,318 18,683,431 22,285,789 22,053,165 26,119,259

Legal Debt Margin $ 434,202,900 $ 41 1,919,160 -$ 303,314,922 $ 303,066,212 $ 276,034,023

Total Net Debt Applicable to the Limit as a Percentage of Debt Limit 5% 4% 7% 7% 9%

NOTE: The District is subject to the Illinois School Code, which limits the amount of certain indebtedness to 6.9% of the most recent available equalized assesed valuation of the District. Fiscal Year 2004 2003 2002 2001 2000 NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN YEARS

PERSONAL PER CAPITA UNEMPLOYMENT YEAR POPULATION INCOME INCOME RATE

SOURCE OF INFORMATION: 2000 US Census and 1990 US Census, Illinois Department of Employment Security Note: 2007 is the most current information available. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO

2008 PERCENTAGE OF EMPLOYER EMPLOYEES TOTAL EMPLOYMENT

Allstate Insurance Company Northbrook 5,750 24%

Northwestern ~nhersity Evanston 5,600 23%

Evanston Northwestern Healthcare Evanston

St Francis Hospital of Evanston Evanston

Underwriter Laboratories, Inc Northbrook 1,600 7%

Federal-Mogul Sealing Systems Skokie 1,500 6%

Kraft General Food Northfield 1,300 5%

Avon Products Morton Grove 1,200 5%

Rush North Shore Medical Skokie 1,200 5%

MPC Products Skokie

1999 PERCENTAGE OF EMPLOYER EMPLOYEES TOTAL EMPLOYMENT

Allstate Insurance Company Northbrook 5,000 22%

Northwestern University Evanston 3,900 17%

Evanston Northwestern Healthcare Evanston 3,000 13%

Fel-Pro Skokie 2,100 9%

St Francis Hospital of Evanston Evanston 1,870 8%

Rank Video Service Northbrook

Underwriter Laboratories, Inc Northbrook

Kraft General Food Northfield

North Shore Medical Skokie 1,200

Zenith Electronics Glenview 1,000 22,570

SOURCE OF INFORMATION: 2008 Illinois Manufacturers Directory. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 NUMBER OF EMPLOYEES BY TYPE LAST TEN FISCAL YEARS

Administration: Superintendent 1 1 1 1 1 Assistant Superintendent 2 2 2 2 2 District Administrators 8 8 7 6 7 Principals and assistants 5 5 5 5 5 Total administration 16 16 15 14 15

Teachers: Regular Education 34 1 352 320 314 310 Special education 50 45 45 46 40 Psychologists 4 4 3 2 2 Social workers and counselors 13 13 10 11 12 Total teachers 408 414 378 373 364

Other supporting staff: Instructional Aides 53 50 35 29 25 Clerical 10112 Month 175 185 180 179 177 Health assistants 2 2 3 2 2 Maintenance, custodians and warehouse 73 73 74 73 72 Nurses 3 3 3 2 2 Total support staff 306 313 295 285 278

Total staff

Source: District Administrative Records This page has been intentionally left blank. NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 MISCELLANEOUS STATISTICS JUNE 30,2009

Location: Chicagoland

Date of Organization: 1901

Number of Schools:

Area Served: Glencoe, Glenview, Northbrook, Northfield, Kenilworth, Wilmette, and Winnetka

Median Home Value:

Student Enrollment:

Certified Teaching Staff:

Student Population:

Average Class Size:

Pupilrreacher Ratio:

Note: Median home value based on 2000 census for Wilmette This page has been infenfionally left blank.

NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 SCHOOL BUILDING INFORMATION LAST TEN FISCAL YEARS

Northfield Campus Square Feet 409,000 409,000 409,000 409,000 409,000 Capacity (Students) 2,200 2,200 2,200 2,200 2,200 Enrollment 1,041 .I,043 1,045 1,024 1,061

Winnetka Campus Square Feet 722,000 722,000 722,000 722,000 722,000 Capacity (Students) 3,032 3,032 3,032 3,032 3,032 Enrollment 3,110 3,108 3,105 3,070 2,964

Total Enrollment 4,151 4,151 4,150 4,094 4,025

NOTE: The Northfield Campus was re-opened for the 2002 school year.

Source: District Administrative Records PERCENTAGE OF STUDENTS RECEIVING PUPIL - FREE OR PERCENTAGE TEACHING TEACHER REDUCED PRICE- CHANGE STAFF RATIO MEALS NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 OPERATING INDICATORS BY FUNCTION LAST TEN FISCAL YEARS

COST COST FISCAL OPERATING PER PERCENTAGE PER YEAR ENROLLMENT* EXPENDITURES PUPIL CHANGE EXPENSES PUPIL

SOURCE OF INFORMATION: * ~verageDaily Attendance per General State Aid Claim Illinois District Report Card

Appendix C

Official Notice of Sale and Bid Form

(THIS PAGE IS INTENTIONALLY LEFT BLANK)

OFFICIAL NOTICE OF SALE

AND

BID FORM

FOR

$8,430,000*

TOWNSHIP HIGH SCHOOL DISTRICT NUMBER 203

COOK COUNTY, ILLINOIS

GENERAL OBLIGATION LIMITED TAX SCHOOL BONDS, SERIES 2010

DATE AND TIME: April 19, 2010 10:00 a.m. Central Daylight Saving Time

PLACE: PMA Securities, Inc. 2135 CityGate Lane, 7th Floor Naperville, Illinois 60563 Attention: Jennifer Hejna Phone: (630) 657-6443 Fax: (630) 718-8701

FORM OF BIDDING: Electronic, as described herein

*Preliminary, subject to change.

(THIS PAGE IS INTENTIONALLY LEFT BLANK) OFFICIAL NOTICE OF SALE

TOWNSHIP HIGH SCHOOL DISTRICT NUMBER 203

COOK COUNTY, ILLINOIS

$8,430,000* GENERAL OBLIGATION LIMITED TAX SCHOOL BONDS, SERIES 2010

NOTICE IS HEREBY GIVEN that the Board of Education (the “Board”) of Township High School District Number 203, Cook County, Illinois (the “District”), will receive bids, via MuniAuction hosted by Grant Street Group (as more fully described below), for the purchase of its $8,430,000* General Obligation Limited Tax School Bonds, Series 2010 (the “Bonds”), on an all or none basis at the following time and place:

TIME: Beginning at 9:45 a.m. until 10:00 a.m. Central Daylight Saving Time April 19, 2010

PLACE: Offices of the District’s Financial Advisor: PMA Securities, Inc. (the “Financial Advisor”) 2135 CityGate Lane, 7th Floor Naperville, Illinois 60563

AWARD OF BONDS: Bids will be publicly announced at the above time and place. Unless all bids are rejected, award will be made by the Board to the bidder offering the lowest true interest cost (“TIC”) to the District.

Proceeds of the Bonds will be used to (i) fund school fire prevention and safety improvement projects at school buildings in the District and (ii) pay certain costs associated with the issuance of the Bonds. The Bonds are being issued pursuant to the School Code of the State of Illinois, the Local Government Debt Reform Act of the State of Illinois and all laws amendatory thereof and supplementary thereto, and a resolution expected to be adopted by the Board on the 19th day of April, 2010 (the “Bond Resolution”).

The Bonds, in the opinion of Bond Counsel, are payable from ad valorem taxes levied against all of the taxable property in the District without limitation as to rate, except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting creditors' rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. The amount of said taxes that may be extended to pay the Bonds is limited as provided by law. See “THE BONDS - Limited Bonds” in the Preliminary Official Statement.

*Preliminary, subject to change.

1 The Bond Resolution will be filed with the County Clerk of Cook County, Illinois (the “County Clerk”) and will serve as authorization to said County Clerk to extend and collect the property taxes as set forth in the Bond Resolution.

The proposed form of opinion of Bond Counsel regarding the Bonds is set forth in Appendix A of the Preliminary Official Statement.

All bids must be submitted on the MuniAuction website at www.grantstreet.com beginning at 9:45 a.m. until 10:00 a.m. Central Daylight Saving Time on April 19, 2010. No telephone, telefax or personal delivery bids will be accepted. The use of MuniAuction shall be at the bidder’s risk and expense and the District shall have no liability with respect thereto, including (without limitation) liability with respect to incomplete, late arriving and non-arriving bids. Any questions regarding bidding on the MuniAuction website should be directed to Grant Street Group (the “Auction Administrator”) at (412) 391-5555 x 370.

Each bidder (“Bidder”) may change and submit bids as many times as it likes during the bidding time period; provided, however, each and any bid submitted subsequent to a Bidder’s initial bid must result in a lower TIC with respect to a bid, when compared to the immediately preceding bid of such Bidder. In the event that the revised bid does not produce a lower TIC with respect to a bid, the prior bid will remain valid.

If any bid in the auction becomes a leading bid two (2) minutes prior to the end of the auction, then the auction will be automatically extended by two (2) minutes from the time such bid was received by MuniAuction. The auction end time will continue to be extended, indefinitely, until a single leading bid remains the leading bid for at least two minutes.

The last valid bid submitted by a Bidder before the end of the bidding time period will be compared to all other final bids submitted by others to determine the winning Bidder or Bidders.

During the bidding, no Bidder will see any other Bidder’s bid, but Bidders will be able to see the ranking of their bid relative to other bids (i.e., “Leader”, “Cover”, “3rd” etc.).

On the Auction Page, Bidders will be able to see whether a bid has been submitted.

Bidders must comply with the Rules of MuniAuction in addition to the requirements of this Official Notice of Sale. To the extent there is a conflict between the Rules of MuniAuction and this Official Notice of Sale, this Official Notice of Sale shall control.

A Bidder submitting a winning bid (“Winning Bid”) is irrevocably obligated to purchase the Bonds at the rates and prices of the Winning Bid, if acceptable to the District, as set forth in this Official Notice of Sale. Winning Bids are not officially awarded to winning Bidders until formally accepted by the District by an officer authorized by the Bond Resolution.

Neither the District, the Financial Advisor, nor the Auction Administrator is responsible for technical difficulties that result in loss of Bidder’s internet connection with MuniAuction, slowness in transmission of bids, any other technical problems resulting in bid submission failure, or any computational or data entry errors associated with using MuniAuction.

2 If for any reason a Bidder is disconnected from the Auction Page during the auction after having submitted a Winning Bid, such bid is valid and binding upon such Bidder, unless the District exercises its right to reject bids, as set forth herein.

Bids which generate error messages are not accepted until the error is corrected and the bid is received prior to the deadline.

Bidders accept and agree to abide by all terms and conditions specified in this Official Notice of Sale (including amendments, if any) related to the auction.

Neither the District, the Financial Advisor, nor the Auction Administrator is responsible to any Bidder for any defect or inaccuracy in this Official Notice of Sale, amendments, or Preliminary Official Statement as they appear on MuniAuction resulting in bid submission failure, or any computational or data entry errors associated with using MuniAuction.

Only Bidders who request and receive admission to the auction may submit bids. MuniAuction and the Auction Administrator reserve the right to deny access to the MuniAuction website to any Bidder, whether registered or not, at any time and for any reason whatsoever, in their sole and absolute discretion.

Neither the District, the Financial Advisor, nor the Auction Administrator is responsible for protecting the confidentiality of a Bidder’s MuniAuction password.

If two bids submitted in the same auction by the same or two or more different Bidders result in the same TIC, the first confirmed bid received by MuniAuction prevails. Any change to a submitted bid constitutes a new bid, regardless of whether there is a corresponding change in the TIC.

Bidders must compare their final bids to those shown on the Observation Page immediately after the bidding time period ends, and if they disagree with the final results shown on the Observation Page they must report them to MuniAuction within 15 minutes after the bidding time period ends.

Regardless of the final results reported by MuniAuction, the Bonds are definitively awarded to the winning Bidder (the “Underwriter”) only upon official award by the District. If, for any reason, the District fails to: (i) award the Bonds to the winner reported by MuniAuction, or (ii) deliver the Bonds to the Underwriter at settlement, neither the District, the Financial Advisor, nor the Auction Administrator will be liable for damages.

Bidders who submit a bid on the Auction Page by clicking the “Submit Bid” button must confirm that bid by clicking the “Yes, Submit Bid” button on the Confirmation Page.

3 The Bonds will be dated the date of issuance thereof, will mature on December 1 of each of the years as follows:

Maturity December 1 Amount ($)* 2014 500,000 2015 1,905,000 2016 1,955,000 2017 2,005,000 2018 2,065,000

*Preliminary, subject to change. The District reserves the right to increase or decrease the principal amount of each maturity of the Bonds on the day of sale in an amount not to exceed $100,000. The aggregate par amount of the Bonds may decrease in an amount not to exceed $250,000. If any principal amounts are adjusted, the purchase price proposed will be adjusted to maintain the same gross spread per $1,000 bond.

Any Bidder electing to designate any maturities as term bonds shall so specify on the affirmed bid form. The term bonds shall be subject to mandatory sinking fund redemption by lot in the amounts currently specified for the serial bonds, at a redemption price of 100% of the principal amount thereof.

The Bonds will be awarded to the single and best Bidder whose bid will be determined upon the basis of the lowest TIC at the rate or rates designated in said bid from the dated date to the respective maturity dates after deducting any premium. The TIC will be calculated as the rate which, when used in computing the present value of all payments of principal and interest to be paid on the Bonds (commencing on December 1, 2010 and semiannually on each June 1 and December 1 thereafter), produces an amount on the expected dated date of the Bonds (May 11, 2010) equal to the purchase price set forth in the bid. In the event of more than one proposal specifying the lowest TIC, the Bonds will be awarded to the Bidder whose bid was submitted first in time on the MuniAuction webpage.

The TIC of each bid will be computed by MuniAuction and reported on the Observation Page of the MuniAuction webpage immediately following the date and time for receipt of bids.

These TICs are subject to verification by the Financial Advisor and will be posted for information purposes only and will not signify an actual award of any bid or an official declaration of the Winning Bid. The District or the Financial Advisor will notify the Bidder to whom the Bonds will be awarded, if and when such award is made.

All interest rates must be in multiples of one-eighth or one-twentieth of one percent (1/8 or 1/20 of 1%), and not more than one rate for a single maturity shall be specified. The rate bid for each maturity shall not exceed 4.00%. The rates shall be in non- descending order. The differential between the highest rate bid and the lowest rate bid shall not exceed three percent (3.00%). All bids must be for all of the Bonds and must be for not less than 100.9% and not more than 103.0% of the par amount thereof.

4 A good faith deposit will not be required prior to bid opening. The Underwriter is required to submit a certified or cashier’s check on a solvent bank or trust company or a wire transfer for TWO PERCENT OF PAR payable to the School Treasurer as evidence of good faith of the Underwriter (the “Deposit”) not later than 3:30 P.M. Central Daylight Saving Time by the next business day following the award. The Deposit of the Underwriter will be retained by the District pending delivery of the Bonds. The District may hold the proceeds of any Deposit or invest the same (at the District’s risk) in obligations that mature at or before the delivery of the Bonds, until disposed of, as follows: (a) at the delivery of the Bonds and upon compliance with the Underwriter’s obligation to take up and pay for the Bonds, the full amount of the Deposit held by the District, without adjustment for interest, shall be applied toward the purchase price of the Bonds at that time, and the full amount of any interest earnings thereon shall be retained by the District; and (b) if the Underwriter fails to take up and pay for the Bonds when tendered, the full amount of the Deposit plus any interest earnings thereon will be forfeited to the District as liquidated damages.

The Underwriter shall provide Bond Counsel, within 48 hours of the award, the required issue statistics to complete parts II-V of Department of Treasury Form 8038-G.

At the time of delivery, the District will furnish to the Underwriter the approving legal opinion of Bond Counsel, together with a complete certified transcript of all proceedings in connection with the issuance of the Bonds which shall include a non-litigation certificate showing that there is no litigation pending or threatened as to the validity or security of the Bonds. Subject to compliance by the District with certain covenants, in the opinion of Bond Counsel, under present law, interest on the Bonds (i) is excludable from the gross income of the owners thereof for federal income tax purposes, (ii) is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations and (iii) is not taken into account in computing adjusted current earnings, which is used as an adjustment in determining the federal alternative minimum tax for certain corporations as described under the heading “TAX EXEMPTION” in the Preliminary Official Statement. Interest on the Bonds is not exempt from present Illinois income taxes.

Subject to the District’s compliance with certain covenants, in the opinion of Bond Counsel, the Bonds are “qualified tax-exempt obligations” under the small issuer exception provided under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), which affords banks and certain other financial institutions more favorable treatment of their deduction for interest expense than would otherwise be allowed under Section 265(b)(2) of the Code.

The Bonds will be issued as fully-registered Bonds without coupons and, when issued, will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the Bonds. A single Bond certificate will be issued to DTC and immobilized in its custody. Individual purchases may be made in book-entry-only form only through DTC participants, in the principal amount of $5,000 and integral multiples thereof. Individual purchasers will not receive certificates evidencing their ownership of the Bonds purchased. The Underwriter shall be required to deposit the Bond certificates with DTC as a condition to delivery of the Bonds. The District will make payments of principal and interest on the Bonds to DTC or its nominee as registered owner of the Bonds in same-day funds. Transfer of those payments to participants of DTC will be the responsibility of DTC; transfer of the payments to beneficial owners by DTC participants will be 5 the responsibility of such participants and other nominees of beneficial owners all as required by DTC rules and procedures. No assurance can be given by the District that DTC, its participants and other nominees of beneficial owners will make prompt transfer of the payments as required by DTC rules and procedures. The District assumes no liability for failures of DTC, its participants or other nominees to promptly transfer payments to beneficial owners of the Bonds.

In the event that the securities depository relationship with DTC for the Bonds is terminated and the District does not appoint a successor depository, the District will prepare, authenticate and deliver, at its expense, fully-registered Bond certificates in the denominations of $5,000 or an integral multiple thereof in the aggregate principal amount of the Bonds of the same maturities and with the same interest rate then outstanding to the beneficial owners of the Bonds.

The Bonds are not subject to optional redemption prior to maturity.

It is intended that CUSIP numbers will be printed on the Bonds, but neither the failure to print or type such number on any Bonds nor any error with respect thereto shall constitute cause for a failure or refusal by the Underwriter to accept delivery of and make payment for the Bonds. All expenses in relation to the printing of CUSIP numbers, including CUSIP Service Bureau charges for the assignment of said numbers, shall be the responsibility of and shall be paid by the Underwriter.

The District covenants and agrees to enter into a written agreement or contract, constituting an undertaking (the “Undertaking”) to provide ongoing disclosure about the District for the benefit of the beneficial owners of the Bonds on or before the date of delivery of the Bonds as required under Section (b)(5) of Rule 15c2-12 (the “Rule”) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. The Undertaking shall be as described in the Preliminary Official Statement, with such changes as may be agreed in writing by the Underwriter. Except as set forth in the Preliminary Official Statement, the District has not failed to comply in all material respects with each and every undertaking previously entered into by it pursuant to the Rule.

The Underwriter’s obligation to purchase the Bonds shall be conditional upon the District delivering the Undertaking on or before the date of delivery of the Bonds.

The District declares the Preliminary Official Statement provided in connection with the sale of the Bonds to be final as of its date for purposes of the Rule, except for the omission of the offering prices or yields, the interest rates, any other terms or provisions required by the District specified in the bid, ratings, other terms of the Bonds depending on such matters, and the identity of the Underwriter. Upon the sale of the Bonds, the District will publish an Official Statement in substantially the same form as the Preliminary Official Statement, subject to minor additions, deletions and revisions as required to complete the Preliminary Official Statement. By submission of its bid, the Underwriter will be deemed to have certified that it has obtained and reviewed the Preliminary Official Statement. Promptly after the sale date, but in no event later than seven business days after the sale date, the District will provide the Underwriter with a reasonable number (not to exceed 50) of final Official Statements. The Underwriter agrees to supply to the District all information necessary to complete the Official Statement within 24 hours after the award of the Bonds.

6 The District reserves the right to reject any or all bids and to determine the best bid in its sole discretion, and to waive any informality in any bid. Additionally, the District reserves the right to modify or amend this Official Notice of Sale; however, any such modification or amendment shall not be made less than twenty-four (24) hours prior to the date and time for receipt of bids on the Bonds and any such modification or amendment will be announced on the Amendments Page of the MuniAuction webpage and through Thompson Municipal News.

By submitting a bid, any Bidder makes the representation that it understands Bond Counsel represents the District in the Bond transaction and, if such Bidder has retained Bond Counsel in an unrelated matter, such Bidder represents that the signatory to the bid is duly authorized to, and does hereby consent to and waive for and on behalf of such Bidder any conflict of interest of Bond Counsel arising from any adverse position to the District in this matter; such consent and waiver shall supersede any formalities otherwise required in any separate understandings, guidelines or contractual arrangements between the Bidder and Bond Counsel.

The Bonds will be delivered to the Underwriter against full payment in immediately available funds as soon as they can be prepared and executed, which is expected to be May 11, 2010. Should delivery, however, be delayed beyond forty-five (45) days from the date of sale for any reason beyond the control of the District except failure of performance by the Underwriter, the District may cancel the award or the Underwriter may withdraw the Deposit and thereafter the Underwriter’s interest in and liability for the Bonds will cease.

The Preliminary Official Statement and the Official Bid Form, together with other pertinent information, may be obtained from the District, Attention Donald R. Goers, Associate Superintendent, 7 Happ Road, Northfield, Illinois 60093, Telephone: (847) 784-3408, or from the Financial Advisor, Attention: Jennifer Hejna, 2135 CityGate Lane, 7th Floor, Naperville, Illinois 60563, Telephone: (630) 657-6443.

By order of the Board of Education of the District, dated this 13th day of April 2010.

/s/ James B. Koch President, Board of Education Township High School District Number 203 Cook County, Illinois

7 (THIS PAGE IS INTENTIONALLY LEFT BLANK) OFFICIAL BID FORM (OPEN AUCTION INTERNET SALE)

Board of Education April 19, 2010 Township High School District Number 203 Cook County, Illinois

Ladies and Gentlemen:

Subject to all the provisions of your Official Notice of Sale, which is expressly made a part of this bid, we offer to purchase $8,430,000* General Obligation Limited Tax School Bonds, Series 2010, dated the date of issuance thereof, as described in said Notice, by paying a price of $______(which is not less than 100.9% and not more than 103.0% of the par amount of the Bonds). The Bonds shall bear interest in non-descending order as follows (each rate (i) a multiple of 1/8 or 1/20 of 1% and (ii) not exceeding 4.00%):

Maturity December 1 Amount* Rate 2014 $ 500,000 _____% 2015 1,905,000 _____% 2016 1,955,000 _____% 2017 2,005,000 _____% 2018 2,065,000 _____%

*The District reserves the right to increase or decrease the principal amount of each maturity of the Bonds on the day of sale in an amount not to exceed $100,000. The aggregate par amount of the Bonds may decrease in an amount not to exceed $250,000. If any principal amounts are adjusted, the purchase price proposed will be adjusted to maintain the same gross spread per $1,000 bond.

The differential between the highest and lowest rates listed above does not exceed three percent (3.00%).

The maturities indicated below constitute term bonds. Each term bond is subject to mandatory sinking fund redemption by lot in the amounts currently specified for the serial bonds, at a redemption price of 100% of the principal amount thereof.

Maturity: ______Term Maturity: ______Maturity: ______Term Maturity: ______

The Bonds are not subject to optional redemption prior to maturity.

If total interest cost, true interest cost or the net interest cost stated below is incorrectly computed, the undersigned agrees that the above interest rates and premium below shall prevail.

Total Interest cost on the Bonds calculated to maturity at the rates specified above $______(Less Premium) $______Net Interest Cost $______True Interest Cost ______%

The Bonds are to be accompanied by the unqualified approving legal opinion of Chapman and Cutler LLP, Chicago, Illinois, Bond Counsel, and a certificate evidencing that no litigation is pending against the District which will affect the validity or security of the Bonds.

Attorneys’ fees, Rating Agency fees, Auction Administrator fees, Financial Advisor fees, the cost of preparing and printing the Bonds, the fees of the bond registrar and paying agent for the Bonds, the cost of printing and mailing the Official Notice of Sale, the Preliminary Official Statement and the Official Statement and miscellaneous expenses of the District incurred in connection with the offering and delivery of the Bonds shall all be the obligation of the District.

We understand that if we are the winning Bidder, we will deposit with the School Treasurer not later than 3:30 P.M. (CDT) the next business day after the sale a certified or cashier’s check or a wire in the amount of $168,600 payable to the District as a guarantee of good faith, to be applied in accordance with the Official Notice of Sale.

______Managing Underwriter

Direct Contact: ______

By: ______Address: ______Phone Number: ______Fax Number: ______E-Mail Address: ______

—PLEASE ATTACH A LIST OF ACCOUNT MEMBERS—

TOTAL BOND YEARS $58,493.33 AVERAGE LIFE 6.939 Years

The foregoing offer is hereby accepted this 19th day of April, 2010, by the Board of Education of Township High School District Number 203, Cook County, Illinois, and in recognition therefore is signed by the official of the District empowered and authorized to make such acceptance.

______President, Board of Education Township High School District Number 203 Cook County, Illinois