Village of Rosemont, Cook County, Illinois General Obligation Corporate Purpose Refunding Bonds, Series 2017

This Preliminary Official Statement and the information contained herein are subject to completion, amendment or other change without notice. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. the facilitiesofDTConorabout October__,2017. Chicago, Illinois,counselto theVillage.ItisexpectedthatdeliveryofBondsin definitive formwillbemadethrough Burke Burns&Pinelli,Ltd., Chicago,Illinois,counseltotheUnderwriter;andRosenthal, Murphey,Coblentz&Donahue, legality byChapmanandCutler LLP,Chicago,Illinois,BondCounsel.Certainlegal mattersaresubjecttotheapprovalof described herein.See“DESCRIPTIONOFTHEBONDS– Redemption.” “SEC equitable principles,whetherconsideredatlaworinequity,includingtheexerciseofjudicialdiscretion. See by bankruptcy, insolvency,moratorium, reorganization and other similarlaws affecting creditors’ rights and by amount, exceptthattherightsofownersBondsandenforceabilitymaybe limited are payablefromadvaloremtaxesleviedonalltaxablepropertyintheVillagewithoutlimitationastorateor Bonds aregeneralobligationsoftheVillageforwhichitsfullfaithandcredithavebeenirrevocablypledged and Local GovernmentDebtReformAct,asamended,andtheconstitutionalhomerulepowersofVillage. The See “PLANOFFINANCE.” Obligation CorporatePurposeBonds,Series2011A;and(ii)paycostsincurredinconnectionwiththeissuanceof Bonds. DTC anditsparticipants.SeeAppendixC–“DTCBOOK-ENTRYONLYSYSTEM.” payments ontheBondswillbemadetosuchregisteredowner,anddisbursalofresponsibility of disbursement tothebeneficialownersofBonds. AslongasCede &Co.isthe registeredowneras nomineeofDTC, “Bond Registrar”)toDTC,whichinturnwillremitsuchprincipalandinterestpaymentsitsparticipantsforsubsequent Bonds willbepaidbyZB,NationalAssociationdbaZionsBank,Chicago,Illinois,asbondregistrarandpayingagent (the payable semiannuallyonDecember1andJuneofeachyear,commencing1,2018.Principalinterest onthe Bonds willnotreceivephysicaldeliveryofbondcertificates. securities depository for the Bonds. Individualpurchases will be made in book-entry form only. Beneficial owners of the & Co.,asregisteredownerandnomineeofTheDepositoryTrustCompany,NewYork,York(“DTC”).DTCwillact Cook County, Illinois (the “Village”) will be issuable only in fully registered form and will be registered in the name of Cede * Preliminary; subjectto change. Dated: October __, 2017 insurance law.See“BONDINSURANCE.” is notcoveredbyanyinsurancesecurityorguarantyfund establishedunderNewYork,California,ConnecticutorFlorida on theBondswhendueassetforthinformofPolicy includedasAppendixEtothisOfficialStatement.ThePolicy Bond InsurancePolicyfortheBonds(the“Policy”).The guaranteesthescheduledpaymentofprincipalandinterest set forthontheinsidecoverpage. Dated: DateofDelivery is notexemptfrompresentStateofIllinoisincometax.See“TAXMATTERS”hereinforamorecompletediscussion. adjustment usedindeterminingthefederalalternativeminimumtaxforcertaincorporations. Interest ontheBonds alternative minimumtaxforindividualsandcorporations,butsuchinterestis taken intoaccountincomputingan owners thereofforfederalincometaxpurposesandisnotincludedasanitemofpreferenceincomputingthe Illinois, BondCounsel(“BondCounsel”),underpresentlaw,interestontheBondsisexcludablefromgrossincomeof New Issue–Book-EntryOnly The Bondsareofferedwhen, as andifissuedbytheVillageacceptedUnderwriter, subjecttotheapprovalof The Bondsaresubjecttooptionalredemptionprior theirmaturityandmandatorysinkingfundredemptionas Subject tocompliancebytheVillagewithcertaincovenants,inopinionofChapmanandCutlerLLP,Chicago, The BondsarebeingissuedpursuanttotheprovisionsofIllinoisMunicipalCode,asamended, the Proceeds oftheBondswillbeusedto:(i)provideforrefundingVillage’scurrentlyoutstandingGeneral The Bondswillbeissuedindenominationsof$5,000oranyintegralmultiplethereof.Interestontheshall The GeneralObligationCorporatePurposeRefundingBonds,Series2017(the“Bonds”),oftheVillageRosemont, Concurrently withtheissuanceofBonds,BuildAmericaMutualAssuranceCompany(“BAM”)willissueitsMunicipal A detailedscheduleofthematuritydates,principalamounts,interestrates,pricesandCUSIPnumbersonBonds is U RITY FORTHEBONDS.” General ObligationCorporatePurposeRefundingBonds,Series2017 PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER 6, 2017 V illage

of MESIROW FINANCIAL,INC. R osemont $20,000,000* , C oo k C Due: December1,asshownoninsidefrontcover o u nty , I llinois Ratings: See“RATINGS”herein

$20,000,000* Village of Rosemont, Cook County, Illinois General Obligation Corporate Purpose Refunding Bonds, Series 2017

MATURITY DATES, PRINCIPAL AMOUNTS, INTEREST RATES, PRICES AND CUSIP† NUMBERS

Maturity CUSIP (December 1) Principal Amount Interest Rate Price Number* 2022 777543 2023 777543 2024 777543 2025 777543 2026 777543 2027 777543 2028 777543 2029 777543 2030 777543 2031 777543 2032 777543 2033 777543 2034 777543 2035 777543 $______% Term Bonds due December 1, 20__; Price ______% CUSIP* 777543

* Preliminary; subject to change.

† CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by S&P Global Market Intelligence. Copyright 2017 CUSIP Global Services, All rights reserved. CUSIP® data used herein is provided by CUSIP Global Services. The CUSIP numbers listed are being provided solely for the convenience of the Bondholders only at the time of issuance of the Bonds and neither the Village nor the Underwriter makes any representation with respect to such numbers or undertakes any responsibility for their accuracy now or at any time in the future. The CUSIP number for a specific maturity is subject to being changed after the issuance of the Bonds as a result of various subsequent actions, including, but not limited to, a refunding in whole or in part of such maturity or as a result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that is applicable to all or a portion of certain maturities of the Bonds.

VILLAGE OF ROSEMONT, ILLINOIS

Bradley A. Stephens, Mayor Debbie Drehobl, Village Clerk

Trustees

John M. Dorgan Ralph DiMatteo Karen A. Fazio Jack Hasselberger Roger Minale Harry Pappas

CONSULTANTS AND ADVISORS

Financial Advisor Ring McAfee & Company, Inc. New York, New York

Bond Counsel Chapman and Cutler LLP Chicago, Illinois

Counsel to the Village Rosenthal, Murphey, Coblentz & Donahue Chicago, Illinois

Auditors Lauterbach & Amen, LLP Warrenville, Illinois

No person has been authorized by the Village or the Underwriter 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 with respect to the Village or the Bonds must not be relied upon as having been authorized by the Village or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of any offer to buy nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The information and expressions of opinion in this Official Statement are subject to change without notice and neither the delivery of this Official Statement nor any sale made under it shall, under any circumstances, create any implication that there has been no change in the affairs of the Village since the date as of which information is given in this Official Statement.

Build America Mutual Assurance Company (“BAM”) makes no representation regarding the Bonds or the advisability of investing in the Bonds. In addition, BAM has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding BAM, supplied by BAM and presented under the heading “BOND INSURANCE” and Appendix E – “Specimen Municipal Bond Insurance Policy.”

Any statements made in this Official Statement, including the Appendices, involving matters of opinion or estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of such estimates will be realized. This Official Statement contains certain forward-looking statements and information that are based on the Village’s beliefs as well as assumptions made by and information currently available to the Village. These statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected.

The 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.

IN CONNECTION WITH THE OFFERING OF THE BONDS, THE UNDERWRITER MAY OVER-ALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.

In making an investment decision, investors must rely on their own examination of the Village and the terms of the offering, including the merits and risks involved. These securities have not been recommended by any federal or state securities commission or regulatory authority. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of this document. Any representation to the contrary may be a criminal offense.

The tax advice contained in this Official Statement is not intended or written by the Village, its Bond Counsel, or any other tax practitioner to be used, and it cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax advice contained in this Official Statement was written to support the promotion or marketing of the Bonds. Each taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

TABLE OF CONTENTS

Page SUMMARY STATEMENT ...... iii INTRODUCTION ...... 1 PLAN OF FINANCE ...... 2 SOURCES AND USES OF FUNDS ...... 3 DESCRIPTION OF THE BONDS ...... 3 General ...... 3 Redemption ...... 4 Selection of Bonds for Redemption; Notice of Redemption ...... 4 Defeasance ...... 5 SECURITY FOR THE BONDS ...... 5 General Obligations ...... 5 Pledged Taxes ...... 6 Tax Abatement ...... 6 BOND INSURANCE ...... 6 Bond Insurance Policy ...... 6 Build America Mutual Assurance Company ...... 6 THE VILLAGE OF ROSEMONT ...... 8 Government and Services ...... 8 General Description ...... 10 Commercial Development ...... 10 TIF Areas ...... 11 Facilities Owned and Operated by the Village ...... 11 Other Commercial and Related Development ...... 14 FINANCIAL MATTERS ...... 17 Accounting Principles ...... 17 Pension Funds and Social Security ...... 17 Investment Policy...... 21 Financial Statements ...... 22 REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES ...... 22 Assessment ...... 22 Equalization ...... 24 Exemptions ...... 24 Tax Levy ...... 27 Collection ...... 27 Illinois Truth in Taxation Law ...... 29 STATISTICAL INFORMATION ...... 30 Statements of Revenues and Expenses of Proprietary Funds ...... 30 Taxation of Property ...... 31 Village Equalized Assessed Valuation and Tax Rates ...... 31 Village Tax Extensions and Collections ...... 31 TIF Initial Values, Current Values and Incremental Values ...... 32 Representative Tax Rates in Leyden Township ...... 33

i Representative Tax Rates in Maine Township ...... 33 Largest Taxpayers 2016 ...... 34 Major Employers ...... 34 Hotel Tax ...... 35 Sales Tax ...... 35 DEBT INFORMATION ...... 36 Legal Debt Margins ...... 36 Overlapping General Obligation Bonded Debt ...... 36 Selected Debt Information ...... 36 Future Financings...... 37 Summary of Village Outstanding Indebtedness ...... 37 SCHEDULE OF GENERAL OBLIGATION DEBT SERVICE ...... 38 TAX MATTERS ...... 39 General ...... 39 State Tax Treatment ...... 41 CONTINUING DISCLOSURE ...... 41 CERTAIN LEGAL MATTERS ...... 42 VERIFICATION OF MATHEMATICAL COMPUTATIONS ...... 43 LITIGATION ...... 43 General ...... 43 The Bonds ...... 43 UNDERWRITING ...... 43 RATINGS ...... 43 FINANCIAL ADVISOR ...... 44 FINANCIAL STATEMENTS ...... 44 AUTHORIZATION AND MISCELLANEOUS ...... 45

APPENDIX A--AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR 2016 ...... A-1 APPENDIX B-- FORM OF OPINION OF BOND COUNSEL ...... B-1 APPENDIX C-- DTC BOOK-ENTRY ONLY SYSTEM ...... C-1 APPENDIX D-- FORM OF CONTINUING DISCLOSURE UNDERTAKING ...... D-1 APPENDIX E-- SPECIMEN MUNICIPAL BOND INSURANCE POLICY ...... E-1

ii SUMMARY STATEMENT This Summary Statement is subject in all respects to the more complete presentation of material in this Official Statement. No person is authorized to detach this Summary Statement from the Official Statement or to otherwise use this Summary Statement without the entire Official Statement.

The Village The Village of Rosemont, Cook County, Illinois (the “Village”) is a municipal corporation and a home rule unit of government under Section 6 of Article VII of the Constitution of the State of Illinois. The Village, as an Illinois municipality, is empowered to issue its General Obligation Corporate Purpose Refunding Bonds, Series 2017 (the “Bonds”), pursuant to the provisions of the Illinois Municipal Code, as amended, the Local Government Debt Reform Act, as amended, and the Village’s constitutional home rule powers.

Authorization The Bonds are being issued pursuant to an ordinance adopted by the Mayor and Board of Trustees of the Village on September 13, 2017, as further supplemented by a Bond Order dated October __, 2017, executed by designated officials of the Village, providing for the sale of the Bonds (collectively, the “Bond Ordinance”).

Purpose of the Bonds Proceeds of the Bonds will be used to: (i) provide for the refunding of the Village’s currently outstanding General Obligation Corporate Purpose Bonds, Series 2011A; and (ii) pay costs incurred in connection with the issuance of the Bonds. See “PLAN OF FINANCE” in the Official Statement.

Security for the Bonds The Bonds are general obligations of the Village and the full faith and credit of the Village have been irrevocably pledged for the payment of the principal of and interest on the Bonds. In the Bond Ordinance, the Village has levied ad valorem taxes upon all of the taxable property in the Village, without limitation as to rate or amount, except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion, for the purpose of paying principal of and interest on the Bonds when due. The Village reserves the right to abate all or part of any such tax levies in any year by depositing into the Bond Account established for the Bonds, from any lawfully available funds, all or a portion of debt service payable during the next succeeding 12-month period. See “SECURITY FOR THE BONDS” in the Official Statement.

Bond Insurance Concurrently with the issuance of the Bonds, Build America Mutual Assurance Company (“BAM”) will issue its Municipal Bond Insurance Policy for the Bonds (the “Policy”). The Policy guarantees the scheduled payment of principal of and interest on the Bonds when due as set forth in the form of the Policy included as Appendix E to this Official Statement.

The Policy is not covered by any insurance security or guaranty fund established under New York, California, Connecticut or Florida insurance law. See “BOND INSURANCE” in the Official Statement.

iii Description of the Bonds The Bonds will mature and bear interest as shown on the inside front cover of the Official Statement.

Payment of Interest Interest on the Bonds will be payable semiannually on December 1 and June 1 of each year, with the first interest payment date being June 1, 2018. ZB, National Association dba Zions Bank, Chicago, Illinois, will act as bond registrar and paying agent under the Bond Ordinance for the Bonds. See “DESCRIPTION OF THE BONDS – General” in the Official Statement.

Redemption The Bonds maturing on or after December 1, 2028* are subject to redemption prior to maturity at the option of the Village from any available funds, in whole or in part, in such principal amounts and from such maturities as the Village shall determine, and within any maturity by lot, on any date on or after December 1, 2027*, at the redemption price of par plus accrued interest thereon to the date fixed for redemption.

The Bonds maturing on December 1, 20__ are also subject to mandatory sinking fund redemption.

For further information on redemption of the Bonds, see “DESCRIPTION OF THE BONDS – Redemption” in the Official Statement.

Ratings The Bonds have been assigned ratings of “__” (______outlook) by S&P Global Ratings (“S&P”), and “____” (______outlook) by Moody’s Investors Service, Inc. (“Moody’s”), based upon the creditworthiness of the Village without regard to bond insurance or other credit enhancement. See “RATINGS.”

S&P is expected to assign the insured rating of “AA” (stable outlook) to the Bonds based upon the issuance of the Policy by BAM at the time of delivery of the Bonds.

See “RATINGS” in the Official Statement.

Registration The Bonds will be issued in fully registered form and will be registered in the name of Cede & Co., as registered owner and nominee of The Depository Trust Company, New York, New York (“DTC”). DTC will act as securities depository for the Bonds. Individual purchases will be made in book-entry form only. Beneficial owners of the Bonds will not receive physical delivery of bond certificates.

* Preliminary; subject to change.

OFFICIAL STATEMENT

$20,000,000* Village of Rosemont, Cook County, Illinois General Obligation Corporate Purpose Refunding Bonds, Series 2017

INTRODUCTION

This Official Statement sets forth information concerning the Village of Rosemont, Cook County, Illinois (the “Village”) and its $20,000,000* aggregate principal amount of General Obligation Corporate Purpose Refunding Bonds, Series 2017 (the “Bonds”). This Official Statement includes the cover page, the Summary Statement and the Appendices.

The Village is authorized to issue the Bonds under and pursuant to an ordinance adopted by the Mayor and Board of Trustees (the “Corporate Authorities”) of the Village on September 13, 2017, as further supplemented by a Bond Order dated October __, 2017, executed by designated officials of the Village (the “Village Officials”), providing for the sale of the Bonds (collectively, the “Bond Ordinance”). The Bonds are general obligations of the Village for which its full faith and credit has been irrevocably pledged and are payable from ad valorem taxes levied upon all taxable property in the Village without limitation as to rate or amount, except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion. See “SECURITY FOR THE BONDS.”

Concurrently with the issuance of the Bonds, Build America Mutual Assurance Company (“BAM”) will issue its Municipal Bond Insurance Policy for the Bonds (the “Policy”). The Policy guarantees the scheduled payment of principal of and interest on the Bonds when due as set forth in the form of the Policy included as Exhibit E to this Official Statement.

The Policy is not covered by any insurance security or guaranty fund established under New York, California, Connecticut or Florida insurance law. See “BOND INSURANCE.”

Proceeds of the Bonds will be used to: (i) provide for the refunding of the Village’s currently outstanding General Obligation Corporate Purpose Bonds, Series 2011A (the “Refunded Bonds”); and (ii) pay costs incurred in connection with the issuance of the Bonds. See “PLAN OF FINANCE.”

This Official Statement contains disclosures which contain “forward-looking statements.” Forward-looking statements include all statements that do not relate solely to historical or current fact, and can be identified by use of words like “may,” “believe,” “will,” “expect,” “project,” “estimate,” “anticipate,” “plan,” or “continue.” These forward-looking statements are based on historical and current data and experience of the Village and are subject to a number of known and unknown uncertainties and risks, many of which are beyond its

* Preliminary; subject to change.

control, that could significantly affect future outcomes, including but not limited to changes in general economic conditions. As a consequence, current plans, anticipated actions and future financial positions may differ from those expressed in any forward-looking statements made by the Village herein. Investors are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in this Official Statement.

This Official Statement includes descriptions of the Village and the security for the Bonds. All references herein to agreements and documents are qualified in their entirety by references to the definitive forms thereof, and all references to the Bonds are further qualified by references to the information with respect thereto contained in the Bond Ordinance. Matters of opinion or estimates contained in any statements or information in this Official Statement are represented as opinions or estimates in good faith, but no assurance can be given that the facts will materialize as so opined or estimated. Terms used, but not defined herein, shall have the meanings set forth in the Bond Ordinance.

PLAN OF FINANCE

The net proceeds of the Bonds will be used by the Village to: (i) provide for the refunding of the Refunded Bonds; and (ii) pay costs incurred in connection with the issuance of the Bonds. To provide for the advance refunding of the Refunded Bonds, a portion of the proceeds of the Bonds will be used to purchase direct obligations of the United States of America (the “United States Government Securities”), the principal of which, together with interest to be earned thereon, shall be sufficient to pay the principal of and interest on the Refunded Bonds when due upon redemption prior to maturity on December 1, 2020. The United States Government Securities will be held in an escrow account established for the benefit of the holders of the Refunded Bonds (the “Escrow Account”) created pursuant to an Escrow Agreement dated as of the date of delivery of the Bonds by and between the Village and ZB, National Association dba Zions Bank, as escrow agent. The redemption price and interest on the Refunded Bonds will be payable from such Escrow Account. Neither the maturing principal of the United States Government Securities purchased to refund the Refunded Bonds and held in the Escrow Account nor the interest earned thereon will serve as security for or be available for the payment of the principal of or interest on the Bonds. The accuracy of the mathematical computation (a) of the adequacy of the maturing principal amounts of the United States Government Securities, together with the interest thereon and uninvested cash, if any, to pay when due the redemption price and interest on the Refunded Bonds, and (b) supporting the conclusion that the Bonds are not “arbitrage bonds” under Section 148 of the Internal Revenue Code of 1976, as amended (the “Code”) will be verified by Robert Thomas, CPA, LLC, independent certified public accountants (the “Verification Agent”), as a condition of delivery of the Bonds. See “VERIFICATION OF MATHEMATICAL COMPUTATIONS.” Such verification of arithmetical accuracy and mathematical computations shall be based upon information and assumptions supplied by the Village.

2 SOURCES AND USES OF FUNDS

The estimated sources and uses of funds are as follows:

Sources of Funds: Principal Amount ...... Funds on deposit in debt service funds for 2011A Refunded Bonds ...... [Net Original Issue Premium] ...... Total Sources of Funds ...... Uses of Funds: [Original Issue Discount] ...... Transfer to Escrow Account for Refunded Bonds ...... Costs of Issuance (including underwriter’s discount and the premium for the Policy) ...... Total Uses of Funds ......

DESCRIPTION OF THE BONDS

General

The Bonds will be initially dated as of the date of delivery and will mature and bear interest as shown on the inside front cover page of this Official Statement. ZB, National Association dba Zions Bank, Chicago, Illinois, will act as bond registrar and paying agent under the Bond Ordinance for the Bonds (the “Bond Registrar”). Interest on the Bonds will be payable semiannually on December 1 and June 1 of each year, with the first interest payment date being June 1, 2018. Interest on the Bonds will be payable to the bondholders of record as they appear on the registration books maintained for the Village by the Bond Registrar for the Bonds on the 15th day of the month preceding any interest payment date. Principal of or redemption due on the Bonds is payable at the office of the Bond Registrar maintained for the purpose.

The Bonds will be issued only as fully registered bonds and when issued will be registered in the name of Cede & Co., as registered owner and nominee of The Depository Trust Company (“DTC”), New York, New York. So long as DTC, or its nominee, Cede & Co., is the registered owner of all the Bonds, all payments on the Bonds will be made directly to DTC. Individual purchases of interests in the Bonds will be made in book-entry form only in the principal amount of $5,000 or any integral multiple thereof. Purchasers will not receive certificates representing their interests in the Bonds purchased. For additional information concerning the DTC book-entry only system. See Appendix C – “DTC BOOK-ENTRY ONLY SYSTEM.”

Redemption

Optional Redemption. The Bonds maturing on or after December 1, 2028* are subject to redemption prior to maturity at the option of the Village from any available funds, in whole or in part, in such principal amounts and from such maturities as the Village shall determine, and within any maturity by lot, on any date on or after December 1, 2027*, at the redemption price of par plus accrued interest thereon to the date fixed for redemption.

Mandatory Sinking Fund Redemption. The Bonds maturing on December 1, 20__, are Term Bonds pursuant to the Bond Ordinance and are subject to mandatory redemption on December 1 in the years and in the amounts shown below, at a redemption price equal to the principal amount of such Bonds so redeemed plus accrued interest to the date of redemption, without premium:

Redemption Date Sinking Fund Redemption Date Sinking Fund December 1 Requirement December 1 Requirement

______† Final maturity

Selection of Bonds for Redemption; Notice of Redemption

For purposes of any redemption of less than all of the Bonds of a single maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected by lot by the Bond Registrar by such method of lottery as the Bond Registrar shall deem fair and appropriate. Such lottery shall provide for the selection of Bonds or portions thereof for redemption so that any $5,000 Bond or $5,000 portion thereof shall be as likely to be called for redemption as any other such $5,000 Bond or $5,000 portion. The Bond Registrar shall make such selection upon the earlier of the irrevocable receipt of funds sufficient to pay the redemption price of the Bonds to be redeemed or the time of the giving of official notice of redemption.

Notice of redemption shall be given by the Bond Registrar on behalf of the Village by mailing the redemption notice by first class U.S. mail not less than 30 days and not more than 60 days prior to the date fixed for redemption to each registered owner of the Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other address as is furnished in writing by such registered owner to the Bond Registrar. All official notices of redemption shall include (i) the name of the Bonds, (ii) the redemption date, (iii) the redemption price, and (iv) if less than all of the outstanding Bonds of a particular maturity are to be redeemed, the identification (and, in the case of partial redemption of Bonds within such maturity, the respective principal amounts) of the Bonds to be redeemed. Unless moneys sufficient to pay the redemption price of the Bonds to be redeemed shall have been received by the Bond Registrar

* Preliminary; subject to change.

4 prior to the giving of such notice of redemption, such notice may, at the option of the Village, state that said redemption shall be conditional upon the receipt of such moneys by the Bond Registrar on or prior to the date fixed for redemption.

The Bonds or portions of Bonds to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date such Bonds or portions of Bonds shall cease to bear interest. Neither the failure to mail a redemption notice, nor any defect in any notice so mailed, to any particular registered owner of a Bond, shall affect the sufficiency of such notice with respect to other registered owners. Notice having been properly given, failure of a registered owner of a Bond to receive such notice shall not be deemed to invalidate, limit or delay the effect of the notice or redemption action described in the notice. Upon surrender for any partial redemption of any Bond, there shall be prepared for the registered owner a new Bond or Bonds of like tenor, of authorized denominations, of the same maturity, and bearing the same rate of interest in the amount of the unpaid principal.

Defeasance

Any Bond or Bonds which (a) are paid and canceled, (b) which have matured and for which sufficient sums have been deposited with the Bond Registrar to pay all principal and interest due thereon, or (c) (i) for which sufficient funds and Defeasance Obligations (as defined below) have been deposited with the Bond Registrar or similar institution to pay, taking into account investment earnings on such obligations, all principal of and interest on such Bond or Bonds when due at maturity or as called for redemption, pursuant to an irrevocable escrow or trust agreement, (ii) accompanied by an opinion of Bond Counsel as to compliance with the covenants with respect to such Bonds, and (iii) accompanied by an express declaration of defeasance by the Corporate Authorities, shall cease to have any lien on or right to receive or be paid from the Pledged Taxes (as defined herein) and shall no longer have the benefits of any covenant for the registered owners of outstanding Bonds as set forth in the Bond Ordinance as such relates to lien and security of the outstanding Bonds. “Defeasance Obligations” means (a) non-callable, non-redeemable, direct and general full faith and credit obligations of the United States Treasury (“Directs”), (b) certificates of participation or trust receipts in trusts comprised wholly of Directs or (c) other non-callable, non-redeemable obligations unconditionally guaranteed as to timely payment by the United States Treasury.

SECURITY FOR THE BONDS

General Obligations

The Bonds, together with the interest thereon, are general obligations of the Village for the payment of which its full faith and credit have been irrevocably pledged. The Bonds are payable from ad valorem taxes levied on all taxable property in the Village, without limitation as to rate or amount (the “Pledged Taxes”), 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. In the Bond Ordinance, as supplemented by Village Officials’ certificates, the Village has levied the Pledged Taxes for the Bonds for the purpose of paying principal of and interest on the Bonds when due.

Pledged Taxes

The Pledged Taxes shall either be deposited into the Bond Account created pursuant to the Bond Ordinance and used for paying the principal of and interest on the Bonds or to reimburse a fund or account from which advances to such Bond Account may have been made to pay principal of or interest on such Bonds prior to receipt of Pledged Taxes. Interest income or investment profit earned in the Bond Account shall be retained in such Account for payment of the principal of or interest on the Bonds on the interest payment date next after such interest or profit is received or, to the extent lawful, transferred to such other fund as determined by the Village. In the Bond Ordinance, the Village pledged, as equal and ratable security for the Bonds, all present and future proceeds of the Pledged Taxes on deposit in the Bond Account for the sole benefit of the registered owners of such Bonds, subject to the reserved right of the Village to reimburse a fund or account from which advances to the Bond Account may have been made to pay principal of or interest on the Bonds prior to the receipt of the Pledged Taxes, and transfer certain interest income or investment profit earned in the Bond Account to other funds of the Village, as described in the preceding sentence.

Tax Abatement The Village reserves the right to abate all or part of any tax levy in any year with respect to the Bonds by depositing into the Bond Account any lawfully available funds in an amount at least equal to the amount to be abated. Notwithstanding the foregoing, no funds other than as described above under “– General Obligations” and “– Pledged Taxes” are pledged as security for the payment of the Bonds.

BOND INSURANCE

Bond Insurance Policy

The Policy is not covered by any insurance security or guaranty fund established under New York, California, Connecticut or Florida insurance law.

Build America Mutual Assurance Company

BAM is a New York domiciled mutual insurance corporation and is licensed to conduct financial guaranty insurance business in all fifty states of the United States and the District of Columbia. BAM provides credit enhancement products solely to issuers in the U.S. public finance markets. BAM will only insure obligations of states, political subdivisions, integral parts of states or political subdivisions or entities otherwise eligible for the exclusion of income under section 115 of the U.S. Internal Revenue Code of 1986, as amended. No member of BAM is liable for the obligations of BAM.

6 The address of the principal executive offices of BAM is: 200 Liberty Street, 27th Floor, New York, New York 10281, its telephone number is: 212-235-2500, and its website is located at: www.buildamerica.com.

BAM is licensed and subject to regulation as a financial guaranty insurance corporation under the laws of the State of New York and in particular Articles 41 and 69 of the New York Insurance Law.

BAM’s financial strength is rated “AA/Stable” by S&P Global Ratings, a business unit of Standard & Poor's Financial Services LLC (“S&P”), which rating was affirmed on June 26, 2017. An explanation of the significance of the rating and current reports may be obtained from S&P at www.standardandpoors.com. The rating of BAM should be evaluated independently. The rating reflects the S&P’s current assessment of the creditworthiness of BAM and its ability to pay claims on its policies of insurance. The above rating is not a recommendation to buy, sell or hold the Bonds, and such rating is subject to revision or withdrawal at any time by S&P, including withdrawal initiated at the request of BAM in its sole discretion. Any downward revision or withdrawal of the above rating may have an adverse effect on the market price of the Bonds. BAM only guarantees scheduled principal and scheduled interest payments payable by the issuer of the Bonds on the date(s) when such amounts were initially scheduled to become due and payable (subject to and in accordance with the terms of the Policy), and BAM does not guarantee the market price or liquidity of the Bonds, nor does it guarantee that the rating on the Bonds will not be revised or withdrawn.

Capitalization of BAM

BAM’s total admitted assets, total liabilities, and total capital and surplus, as of June 30, 2017 and as prepared in accordance with statutory accounting practices prescribed or permitted by the New York State Department of Financial Services were $500.3 million, $68.8 million and $431.5 million, respectively.

BAM is party to a first loss reinsurance treaty that provides first loss protection up to a maximum of 15% of the par amount outstanding for each policy issued by BAM, subject to certain limitations and restrictions.

BAM’s most recent Statutory Annual Statement, which has been filed with the New York State Insurance Department and posted on BAM’s website at www.buildamerica.com, is incorporated herein by reference and may be obtained, without charge, upon request to BAM at its address provided above (Attention: Finance Department). Future financial statements will similarly be made available when published.

BAM makes no representation regarding the Bonds or the advisability of investing in the Bonds. In addition, BAM has not independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness of this Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding BAM, supplied by BAM and presented under the heading “BOND INSURANCE.”

7 Additional Information Available from BAM

Credit Insights Videos. For certain BAM-insured issues, BAM produces and posts a brief Credit Insights video that provides a discussion of the obligor and some of the key factors BAM’s analysts and credit committee considered when approving the credit for insurance. The Credit Insights videos are easily accessible on BAM's website at buildamerica.com/creditinsights/. (The preceding website address is provided for convenience of reference only. Information available at such address is not incorporated herein by reference.)

Credit Profiles. Prior to the pricing of bonds that BAM has been selected to insure, BAM may prepare a pre-sale Credit Profile for those bonds. These pre-sale Credit Profiles provide information about the sector designation (e.g. general obligation, sales tax); a preliminary summary of financial information and key ratios; and demographic and economic data relevant to the obligor, if available. Subsequent to closing, for any offering that includes bonds insured by BAM, any pre-sale Credit Profile will be updated and superseded by a final Credit Profile to include information about the gross par insured by CUSIP, maturity and coupon. BAM pre-sale and final Credit Profiles are easily accessible on BAM's website at buildamerica.com/obligor/. BAM will produce a Credit Profile for all bonds insured by BAM, whether or not a pre-sale Credit Profile has been prepared for such bonds. (The preceding website address is provided for convenience of reference only. Information available at such address is not incorporated herein by reference.)

Disclaimers. The Credit Profiles and the Credit Insights videos and the information contained therein are not recommendations to purchase, hold or sell securities or to make any investment decisions. Credit-related and other analyses and statements in the Credit Profiles and the Credit Insights videos are statements of opinion as of the date expressed, and BAM assumes no responsibility to update the content of such material. The Credit Profiles and Credit Insight videos are prepared by BAM; they have not been reviewed or approved by the issuer of or the underwriter for the Bonds, and the issuer and underwriter assume no responsibility for their content.

BAM receives compensation (an insurance premium) for the insurance that it is providing with respect to the Bonds. Neither BAM nor any affiliate of BAM has purchased, or committed to purchase, any of the Bonds, whether at the initial offering or otherwise.

THE VILLAGE OF ROSEMONT

Government and Services

The Village of Rosemont, incorporated January 20, 1956, is a home rule unit pursuant to Article VII, Section 6(a) of the 1970 Illinois Constitution. Except as limited by such Article, and any specific preemption legislation adopted thereunder, a home rule unit may exercise any power and perform any function relating to its government and affairs, including, but not limited to, the power to regulate for the protection of the public health, safety, morals and welfare, to license, to tax, and to incur debt.

8 The Village of Rosemont is a “home rule unit” by referendum and is governed by a Mayor and a six-member Board of Trustees, all of whom are elected at large for staggered four- year terms. Pursuant to authority granted by the Constitution of the State of Illinois, a home rule unit may incur indebtedness without limit as to rate or amount and without referendum. Budget preparation, administration and the hiring of personnel are the responsibility of the Mayor and Board of Trustees. The administration and supervision of the day-to-day functions of the Village are the responsibility of the Mayor. The Corporate Authorities of the Village are currently as follows: Bradley A. Stephens, Mayor

Trustees John M. Dorgan Ralph DiMatteo Karen A. Fazio Jack Hasselberger Roger Minale Harry Pappas

The Village has a total of approximately 247 full-time employees. It provides fire and police protection through a combined public safety department consisting of 79 full-time public safety officers. The Village has the largest auxiliary police force in the State of Illinois with over 277 part-time officers. The Village also makes use of a canine unit. The fire division has 12 vehicles it uses to respond to calls. The fire division responded to over 2,400 calls in 2016 and estimates it will have responded to over 2,500 calls in 2017. The fire division also has specially trained teams for technical rescue, underwater rescue, hazardous material handling, pyrotechnical inspections, and fire prevention. The Village also provides emergency medical treatment by paramedics.

The Village owns and operates a waterworks system, providing Lake Michigan water purchased from the City of Chicago, and a sewage collection system. Sewage treatment is provided by the Metropolitan Water Reclamation District of Greater Chicago. Other utilities include AT&T, Commonwealth Edison, NICOR, and Comcast Cable Company.

Education services are primarily provided by a grade school district, a high school district and a community college district. However, small portions of the Village are within the boundaries of other adjacent grade school, high school and community college districts.

The Village provides parks and recreational facilities for the benefit of its citizens and coordinates with the Rosemont Park District on the operation of many of such facilities. Recent improvements to Dunne Park include the expansion and renovation of the fieldhouse to create a recreation center with a new gymnasium. Other improvements include new playground equipment with a poured-in-place rubber surface, parking improvements, site work, landscaping, a new water main, sanitary sewer and stormwater improvements, all of which complement the existing walking paths and small lake. This updated facility is cooperatively operated with the Rosemont Park District to provide important recreational programming opportunities for the Village’s residents.

9 General Description

Rosemont is located immediately adjacent to Chicago’s O’Hare International Airport, approximately 14 miles northwest of the Chicago “Loop.” The Village is bounded on the north by the City of Des Plaines, on the south by the Village of Schiller Park, on the east by the Cities of Park Ridge and Chicago and on the west by O’Hare International Airport.

The John F. Kennedy Expressway (Interstates 90 & 190), the Tri-State Tollway (Interstate 294) and the Jane Addams Tollway, formerly the Northwest Tollway (Interstate 90), intersect within the Village. There are several entrance and exit ramps for easy access. Higgins Road (Illinois Route 72), Mannheim Road (U.S. Routes 12 and 45), and Des Plaines River Road also traverse the Village. The Village also has a Chicago Transit Authority station for the L - Train route from the “Loop” to the O’Hare International Airport and a Metra commuter rail station that connects to the northern suburbs and the Chicago downtown area.

Rosemont has an area of approximately 2,240 acres (approximately two and one-half square miles), of which approximately 740 acres are zoned for residential use and approximately 1,500 acres are zoned for commercial and industrial uses. The Village’s proximity to O’Hare International Airport, the Northwest Commercial Corridor, and the City of Chicago has contributed to the growth of convention-related and hotel-motel industries as well as general commercial and office development. The Village-owned Donald E. Stephens Convention Center, discussed below under “– Facilities Owned and Operated by the Village,” has been a significant factor in the growth of the Village economy. There is currently in excess of 5.4 million square feet of office space and 17 hotels with over 5,900 rooms in the Village. The Village also owns and provides for the operation of several facilities that support or enhance the commercial and convention-related development within the Village.

Commercial Development

Commercial Development has proceeded within the Village during the current decade as it has in the past. Private development has occurred in hospitality and business sectors in keeping with the Village’s character as a business, travel and entertainment destination. In addition to purely privately-financed development, the Village encourages continued commercial development, for instance through the sale of Village-owned land or forms of Village-financed local improvements, as part of its efforts to foster economic growth within the Village. The Village also directly owns convention, entertainment, leisure and other types of facilities that are owned by the Village, in part, in order to promote Village growth in the areas of commercial and convention-related development (the “Proprietary Facilities”). In some of the foregoing types of Village-supported development, the Village has used its powers as a home rule unit and the provisions of the Tax Increment Allocation Redevelopment Act of the State of Illinois, as supplemented and amended (the TIF Act”), to create several redevelopment project areas (each a “TIF Area”). Financial information related to Village direct and fee income and to tax revenues (e.g. property tax, TIF increment revenues and sales tax) generated as result of these types of commercial development is set forth under “STATISTICAL INFORMATION” and contained in the Village financial statements for the year ending December 31, 2016 (which are attached to this Official Statement as APPENDIX A).

10 TIF Areas

The Village has previously created several redevelopment project areas known as the “River Road Redevelopment Project Area” (“TIF Area 3”), the “South River Road Redevelopment Project Area” (“TIF Area 4”), the “Touhy-Mannheim Redevelopment Project Area” (“TIF Area 5”), the “Higgins River Road Redevelopment Project Area” (“TIF Area 6”), the “Higgins Mannheim Road Redevelopment Project Area” (“TIF Area 7”) and the “Balmoral/Pearl Redevelopment Project Area” (“TIF Area 8”). TIF Areas 1 and 2 have expired under the provisions of the TIF Act. TIF Area 8 was recently established and is being extended to a total term of 35 years pursuant to authorization granted by Public act 99-792. The Village may create additional TIF Areas under the provisions of the TIF Act in the future.

Under the TIF Act, tax increment revenue is derived from the increase in the current Equalized Assessed Valuation of real property within the TIF Area tax codes over and above the certified initial Equalized Assessed Valuation (the “initial value”) of such real property which was determined at the time of the establishment of the TIF Area. Any increase in Equalized Assessed Valuation is then multiplied by the current aggregate tax rate of all local government units empowered to tax such property which results in “tax increment revenue.” This tax increment revenue is then paid to the Village Treasurer for deposit in the appropriate tax increment fund of the Village.

With respect to each of the active TIF Areas, the Village has also created a related special tax increment fund (collectively, the “Special Funds”). It is the present intention of the Village to utilize available incremental taxes in the Special Funds to pay all or a portion of the debt service on the Bonds and to abate the Pledged Taxes accordingly, to the extent such incremental taxes in any such Special Fund are lawfully permitted to be used for such purpose. The Bond Ordinance provides that, if incremental taxes are available and may lawfully be used for such purpose, the Finance Officer of the Village shall, without further order or direction, in each year, allocate such incremental taxes to the Bond Account for the payment of debt service on the Bonds. To the extent such incremental taxes are so deposited, the Village shall effect a corresponding abatement of Pledged Taxes as described under “SECURITY FOR THE BONDS – Tax Abatement.” The initial values, current values and incremental values (the excess of current values over Initial Values) of the active TIF Areas in the Village and the total EAV’s of the Village for the past five Levy Years are shown under “STATISTICAL INFORMATION – TIF Initial Values, Current Values and Incremental Values.”

The Village has reserved the authority to issue future obligations without limit having such lien or pledge on the Special Funds as the Village may determine. The Bonds are not secured by and have no express lien or pledge on the incremental taxes or any monies on deposit in the Special Funds. The Bonds are secured solely as described under “SECURITY FOR THE BONDS.”

Facilities Owned and Operated by the Village

The facilities described under this subcaption are defined in this Official Statement as the “Proprietary Facilities.” The operations of the Proprietary Facilities are accounted for in the

11 proprietary funds of the Village that are set forth in the table under “STATISTICAL INFORMATION – Statements of Revenues and Expenses of Proprietary Funds.”

Donald E. Stephens Convention Center

The Village owns and operates the Donald E. Stephens Convention Center (formerly the Rosemont Convention Center). Since the Convention Center opened in 1975 it has expanded several times and currently encompasses 890,000 square feet. The Convention Center features six exhibit halls, with five on one level. These exhibit halls have the versatility of layouts for 100 to 2,700 10 x 10 exhibit booths. The main exhibit hall, Hall A, contains 250,000 square feet of exhibit space. The Convention Center’s 30,000 square foot lobby serves four exhibit halls. There are four permanent concession stands, numerous storage areas, and full kitchen facilities. The Convention Center and the Rosemont Visitor and Tourism Bureau offices are also located within the building.

The Convention Center includes a Conference Center Facility with fifty separate meeting rooms. These rooms can accommodate up to 4,000 people for a meeting and 3,000 people for a sit down function. The Conference Center Facility also provides exhibit space amenities for trade show managers and exhibitors and is utilized for several hundred corporate meetings throughout the year.

The Convention Center offers a full complement of services. It is one of the few major facilities in the country that has its own in-house service contractor. This high quality service program helps to better monitor labor as well as encourage repeat business at the Convention Center. It also provides an additional profit center, which most trade show and exhibition facilities do not enjoy. These profits come from equipment rental, freight handling, electrical charges, and labor.

One of the principal marketing arms in the Convention Center is the Rosemont Visitor and Tourism Bureau. Its primary responsibility is to promote the Village as a travel and entertainment destination. Among other things, the Bureau solicits trade show business for the Convention Center requiring hotel room bookings and increasing tourism for the Village.

In 2016 more than 1.2 million guests from around the world attended a variety of trade shows, consumer events and corporate meetings in the Village. The Convention Center currently provides approximately 8,500 parking spaces. The climate controlled walkway system between the Convention Center and the Hyatt Regency O’Hare; Embassy Suites and Hilton has been renovated at a cost of approximately $3.5 million. The Convention Center also renovated the lobby and G Hall at a cost of approximately $1 million. The East Garage serving the Convention Center was renovated in 2014. Recent renovations include the Exhibit Hall, East Ballroom, concessions and restrooms.

Allstate Arena

The Village owns and operates the Allstate Arena (an indoor sports/entertainment complex) which opened on May 17, 1980. In August, 2000, the Village completed a 13-month

12 $25,000,000 renovation of the Allstate Arena that widened interior concourses, increased the number of concession stands and restrooms and added new, wider, padded seats. The building also received a facelift with new exterior walls and decorative window treatment. In 2010, the Allstate Arena modernized the food and beverage stands and created more points of sale at an approximate cost of $1.5 million. This renovation resulted in a 25% to 30% increase in food and beverage revenue per event.

The Allstate Arena has 15,500 permanent seats with a capacity for up to 19,500 depending on event and configuration. Approximately 150 events are held in the Arena annually. Throughout the past three decades, yearly attendance has averaged well over one million spectators. In 2015, the Allstate Arena placed third in Pollstar Publication’s list of busiest arenas in the United States and tenth in the world.

The Allstate Arena is the current home of the American Hockey League Chicago Wolves. The Allstate Arena also presents approximately 30 concerts per year and has hosted the Ringling Brothers and Barnum & Bailey Circus, several different ice shows, professional motor sports events, professional boxing, World Wrestling Entertainment, various meetings of large corporations, diverse ethnic events, and the NCAA College Basketball Tournament.

In 2014, the Village and the Allstate Insurance Company entered into a new naming rights agreement which extended Allstate’s sponsorship of the Allstate Arena to July 31, 2024. The Village is scheduled to receive revenue totaling $15,000,000 during the term of this agreement.

Rosemont Theatre

The Village owns and operates the 4,300 seat Rosemont Theatre which opened in 1995 and features an elegant and spacious lobby. Since it opened, more than four million patrons have attended the variety of concerts, theatrical productions, family shows, and other events presented at the Theatre. These events have included the Radio City Christmas Spectacular, Sesame Street, Blue’s Clues, Barney, Spider-Man, The Tonight Show, Jeopardy and Broadway-type shows such as South Pacific. Headline performers have included Barry Manilow, Chicago, Lady Gaga, George Lopez, Jerry Seinfeld, Paul Simon, Martina McBride and David Copperfield. The Theatre has also hosted corporate events sponsored by a variety of businesses including Motorola, McDonald’s, and U.S. Cellular. In 2016, the Rosemont Theater hosted 90 events with attendance of more than 274,000.

Rosemont Health and Fitness Club

The Village owns and operates the Rosemont Health and Fitness Club which opened in 1992. The Rosemont Health and Fitness Club is a 93,000 square-foot health and fitness facility, which is open 110 hours per week. The club currently has approximately 2,350 members. Features of the club include a five lane one-fifth of a mile indoor track, a regulation basketball court, tennis court, two racquetball courts, indoor lap pool, whirlpool and a variety of strength and cardio equipment. A total of approximately 74 fitness classes are offered each week, which include: cardio, toning, spinning, aquatic and yoga classes. Other on-site services include child care, indoor tanning and a café. The facility also hosts health and fitness seminars, workshops,

13 and events throughout the year. The Village leases space in the club facility to a chiropractor, a day spa, a beauty salon and second floor office space.

Entertainment District – MB Financial Park at Rosemont

The Village has developed a parcel of vacant land into an entertainment destination with restaurants, recreational and live entertainment venues in a development known as The MB Financial Park at Rosemont. This development includes an outdoor plaza area that can serve as an ice skating rink in the winter and a live entertainment area used for concerts and other events. The tenants in the MB Financial Park include a Hofbrauhaus, Adobe Gilas, Sugar Factory, King’s Bowl, Five Roses, Park Tavern, Zanies Comedy Club and iFly, a simulated sky diving facility. Bub City and Joe’s Live opened in February 2016, taking the place of Toby Keith’s I Love this Bar and Grill. In 2013, The Big Ten Conference’s headquarters relocated to a new building at the southwest corner of the MB Financial Park. This new building includes an additional Village-owned restaurant space that has been leased to the operator of a Fogo de Chao Brazilian steakhouse. The area also includes an 18 screen Muvico Theater which opened in 2007 and a 250-room Aloft Hotel. The MB Financial Park is located east of I294 and across Balmoral Avenue from the Fashion Outlet Mall described below.

In 2018, Windy City Motorcycle Co. plans to construct a two-story, 20,000-square-foot Harley-Davidson motorcycle dealership and retail store at MB Financial Park. This location will offer Harley-Davidson merchandise and products and house the group’s centralized national and international Harley-Davidson rental and tour businesses for the Chicagoland area.

The MB Financial Park at Rosemont development was initially located in an existing redevelopment project area that was established pursuant to the Illinois Tax Increment Allocation Redevelopment Act known as the River Road Redevelopment Project Area (TIF Area 3). The Village has transferred the recently developed portions of The MB Financial Park at Rosemont property to the South River Road Redevelopment Project Area (TIF Area 4) in order to allow the Village to take financial advantage of the opportunity for longer-term use of tax increment funds that is provided because the South River Road Redevelopment Project Area (TIF Area 4) is scheduled to expire 15 years after the scheduled expiration date of the River Road Redevelopment Project Area (TIF Area 3).

Other Commercial and Related Development

Highway Access Improvements

In November 2011, work was completed on a new exit ramp from northbound Interstate 294 (“I294”) to Balmoral Avenue. Work was completed pursuant to an intergovernmental cost- sharing agreement between the Illinois State Toll Highway Authority and the Village and also included improvements to the Balmoral Avenue bridge over I294, improvements to an existing entrance to southbound I294 from Balmoral Avenue and other improvements to Balmoral Avenue. The new ramp provides access from northbound I294 to the Fashion Outlet Mall (described below), The MB Financial Park at Rosemont, the Rosemont Theatre, the Donald E. Stephens Convention Center, several nearby hotels as well as The Ballpark at Rosemont and The

14 Dome at Rosemont (described below). A portion of the costs of these improvements was financed with the proceeds of the Refunded Bonds.

In 2015, Balmoral Avenue was extended to the west to provide a second access point to O’Hare International Airport. This project was a joint venture between the Village, the Illinois Department of Transportation and the City of Chicago Department of Aviation. As a result, the travel times to and from O’Hare International Airport, the southern Chicago suburbs and all of the properties on the south side of the Village (Fashion Outlet Mall, Entertainment District, Convention Center, Rosemont Theater and numerous hotels) have been substantially reduced.

Fashion Outlet Mall

In 2013, a new 530,000 square foot indoor outlet mall opened to the public with 130 stores including Bloomingdale’s The Outlet Store, Nieman Marcus Last Call, Saks Fifth Avenue OFF 5th, Forever 21, Barney’s New York Warehouse, Calvin Klein, DKNY, Giorgio Armani, Gucci, Michael Kors, Prada, Tommy Hilfiger, Tory Burch Outlet, Nordstrom Rack and other luxury brands. This mall was recognized as the Best Factory Outlet in the World at the 2014 MAPIC Retail Property Convention held in Cannes, France. The mall has services to assist in the printing of airplane boarding passes and the checking of baggage along with luggage and shopping bag storage and same-day local delivery services. The development is located south of Balmoral Avenue and east of I294 and the new northbound I294 exit ramp to Balmoral Avenue and is across the street from The MB Financial Park at Rosemont. The Donald E. Stephens Convention Center, the Rosemont Theater and several hotels are also located close by. This development is located in TIF Area 4 on land purchased from the Village. In addition, the developer received the Village’s assistance in the construction of a parking facility adjacent to the mall on Village-owned property.

South Pearl Street Development and South Pearl Street Development Parking Structure Projects

The Village is in the process of developing vacant land located in a redevelopment project area established pursuant to the Illinois Tax Increment Allocation Redevelopment Act known as the Balmoral/Pearl Redevelopment Project Area (TIF Area 8). The establishment of TIF Area 8 was approved by the Village on February 10, 2016. While the standard term of a TIF is 23 years, on August 12, 2016 Public Act 99-0792 as enacted by the State legislature became law and authorized the extension of the term of TIF Area 8 to a 35-year term. This legislation was actively supported by affected property tax recipients in the TIF, including Rosemont School District 78, Schiller Park School District 91, Leyden High School District 212, Leyden Township, Triton College and the County.

A 165-room boutique hotel under the Hilton brand is currently under construction in TIF Area 8 by the Janko Group LLC. This approximately 99,400 square foot, five-story hotel will feature approximately 6,000 square feet of multiple high-technology meeting rooms/pre-function areas, approximately 2,500 square feet of bar and market/grab and go food and beverage outlet and a fitness center. The hotel is located in the southeast corner of TIF Area 8. Pursuant to a redevelopment agreement, the Village is providing for the cost of construction of certain infrastructure improvements. The hotel is expected to open in the late summer of 2018.

15 The Village has entered into a Lease and Redevelopment Agreement with Dave & Busters of Illinois for the development of an approximately 40,000 square foot Dave & Buster’s restaurant and entertainment complex which is currently under construction. Dave & Buster’s provides a full menu of American entrees and appetizers along with a full selection of non- alcoholic and alcoholic beverages and an extensive assortment of entertainment attractions centered on playing games and watching live sports. The Village is financing the construction of the building, along with tenant improvements, and will retain ownership. The lease term is 15 years with three 5 year renewal options. Dave and Buster’s is expected to open in the spring of 2018.

A developer has purchased two parcels of land located in the eastern portion of TIF Area 8 for use as a commercial development. This development is expected to include two restaurants. A Carmine’s Italian eatery operated by Rosebud Restaurants in a single-story, 10,000-square-foot building and Truluck’s Seafood Steak & Crab House in a separate, two-story, 14,000-square feet building. . Pursuant to a redevelopment agreement, the Village is providing for the cost of construction of certain infrastructure improvements. These restaurants are expected to open in the summer of 2018.

The Village is currently constructing a parking garage to provide parking for the developments in the South Pearl Street Development Project. A 760 space parking garage will be constructed immediately west of the Dave & Buster’s restaurant. This parking garage will be owned and operated by the Village.

Certain costs associated with the foregoing facilities have been financed with the proceeds of previously issued General Obligation Corporate Purpose Bonds.

Baseball Stadium and Baseball Stadium Parking Structure Projects

Also in TIF Area 8, the Village has undertaken the development of an approximately 6,300 seat baseball stadium facility, located north of Balmoral. The Village has entered into a license agreement with Rosemont Entertainment Group, LLC for use of the stadium for a new American Association of Independent Baseball minor league team to be named the “Chicago Dogs.” The Village is financing the construction of the stadium, along with tenant improvements, and retains ownership. The stadium will be named “Impact Field” as part of a 12-year naming rights sponsorship between the Chicago Dogs and Impact Networking. The Chicago Dogs are scheduled to begin play in May 2018 at Impact Field. Certain costs associated with these facilities have been financed with the proceeds of previously issued General Obligation Corporate Purpose Bonds.

The Village is currently constructing a 1,250 space parking garage just south of the Baseball Stadium. This parking garage will be owned and operated by the Village to provide parking for the general public. Certain costs associated with these facilities have been financed with the proceeds of previously issued General Obligation Corporate Purpose Bonds.

The Ballpark at Rosemont and The Dome at Rosemont

The Village has constructed a baseball field stadium-facility known as The Ballpark at Rosemont that serves as the home field for the Chicago Bandits professional softball team. The

16 facility opened in 2011. In 2017, the Village acquired the Chicago Bandits team franchise from the National Pro Fastpitch League. An additional two fields useable for baseball and other recreational purposes located in a heated inflated facility known as The Dome were completed in 2012 adjacent to the stadium. The Dome has also hosted professional boxing matches. Certain costs associated with these facilities have been financed with the proceeds of previously issued General Obligation Corporate Purpose Bonds.

Additional Commercial Development

In 2015, construction of the new development located in the Higgins Road/River Road TIF Area 6 Tax Increment Financing Redevelopment Project Area was completed. This development includes a 150-room Hampton Inn and Suites, an 180,000 square foot office building, owned and occupied by the American Academy of Orthopedic Surgeons and an additional parking deck located at the northwest corner of Higgins and River Roads. The Village had entered into a development agreement for this project to provide funding for eligible redevelopment project costs through a loan from the Village’s General Fund to TIF Area 6. Additional recent improvements in TIF 6 include the opening of a new Gene & Georgetti’s restaurant, a new Taco Bell and a Moretti’s restaurant.

In 2016, a new 200 room Hyatt Place Hotel opened near the Allstate Arena at the intersection of Manheim Road and the Jane Adams Tollway in TIF 7.

FINANCIAL MATTERS

Accounting Principles

The Village uses the modified accrual basis of accounting for governmental and agency funds and the accrual basis for enterprise and pension trust funds. Fiscal years end on December 31st.

Pension Funds and Social Security

New GASB Standards

Beginning with the Village’s fiscal year ended December 31, 2014, the Governmental Accounting Standard Board (“GASB”) Statement No. 67 (“GASB 67”) replaced GASB Statement No. 25 and was implemented in the calculation and reporting of the actuarial valuations of assets performed by the actuaries and independent auditors preparing financial reports respecting the pension funds in which Village employees are participants. Beginning with the Village’s fiscal year ended December 31, 2015, GASB Statement No. 68 (“GASB 68” and, together with GASB 67, the “New GASB Standards”) replaced GASB Statement No. 27 for financial reporting standards applicable to the Village’s audited financial statements.

The New GASB Standards require calculation and disclosure of a “Net Pension Liability,” which is the difference between the actuarial present value of projected benefit payments that is attributed to past periods of employee service calculated pursuant to the

17 methods and assumptions set forth in the New GASB Standards (referred to in such statements as the “Total Pension Liability”) and the fair market value of the pension plan’s assets (referred to as the “Fiduciary Net Position”). This concept is similar to the Unfunded Actuarial Accrued Liability (“UAAL”), which was calculated under the prior GASB standards, but most likely will differ from the UAAL on any calculation date because the Fiduciary Net Position is calculated at fair market value and because of the potential differences in the manner of calculating the Total Pension Liability as compared to the Actuarial Accrued Liability under the prior GASB standards.

Furthermore, the New GASB Standards employ a “Discount Rate,” which is used to discount projected benefit payments to their actuarial present values. The Discount Rate may be a blended rate comprised of (1) a long-term expected rate of return on pension plan investments (during the period in which the fiduciary net position is projected to be sufficient to pay benefits), and (2) the tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an average AA credit rating (which is published by the Federal Reserve) as of the measurement date (to the extent that the contributions for use with the long-term expected rate of return are not met). Therefore, in certain cases in which the assets are not expected to be sufficient to pay the projected benefits, the Discount Rate calculated pursuant to the New GASB Standards may differ from the assumed investment rate of return used in reporting pursuant to the prior GASB standards. As of December 31, 2016, the Total Pension Liability determined for the Illinois Municipal Retirement Fund (“IMRF”) and the Public Safety Officers’ Pension Fund (the “PSOPF”) under GASB 67 was based on a discount rate of 7.50% and 6.75%, respectively.

As a result of the changes in terminology, reporting requirements and calculation methodology required under the New GASB Standards, the financial reporting on the IMRF and the PSOPF as presented in the Village financial statements for the year ending December 31, 2016 differs from that as presented in fiscal years prior to the year ending December 31, 2015. The information on the pension funds to which the Village makes contributions in this Official Statement is based on the Village financial statements for the year ending December 31, 2016 (which are attached to this Official Statement as APPENDIX A) and, therefore, does not include comparative information related to prior fiscal years unless contained in said financial statements. Audited financial statements for prior fiscal years that contain financial reporting based on previous GASB standards may be reviewed at the website maintained by the Village (http://www.rosemont.com/government/finance-department/annual- report). None of the information on such website, or on the links appearing on the url disclosed in the previous sentence, is incorporated by reference into this Official Statement.

IMRF

Full-time employees of the Village, other than public safety officers, are participants in IMRF, which is in addition to their social security coverage. As of December 31, 2016, the ratio of the assets of the IMRF (calculated as the “Plan Fiduciary Net Position”) to the total pension liability of the IMRF was 91.56% (see APPENDIX A – “Audited Financial Statements for Fiscal Year 2016 – Required Supplementary Information – Schedule of Changes to the Employer’s Net Pension Liability”). IMRF prepares a publicly available annual financial report that may be obtained at www.imrf.org. None of the information on such website, or on the links appearing

18 on the url disclosed in the previous sentence, is incorporated by reference into this Official Statement and the Village takes no responsibility for, nor has it attempted to verify the accuracy of, the information contained therein. The Village has not independently verified the information derived from the IMRF financial report and makes no representations nor expresses any opinion as to the accuracy of such information.

The IMRF is established and governed by State statute. The relevant statute requires the Village to contribute the amount necessary that, when added to amounts representing member (employee) contributions, would be sufficient to finance the coverage of its own employees. The Village’s actuarially determined contribution for calendar year 2016 was $1,239,724.

Part-time employees have social security coverage with no IMRF benefits. (A part-time employee is one who normally works less than 1,000 hours per year.) For further detail on the Village’s participation in the IMRF, see APPENDIX A – “Audited Financial Statements for Fiscal Year 2016 – Notes to Financial Statements – Note 4” and “– Required Supplementary Information – Schedule of Changes to the Employer’s Net Pension Liability.”

PSOPF

Public Safety Officers (sworn police personnel) are participants in the Village’s PSOPF. The PSOPF was initially created in 1975 and clarified by a Pension Ordinance adopted by the Village on November 11, 1986 for the benefit of the Village’s full-time public safety officers who choose to participate. The PSOPF was established by the Village pursuant to its home rule powers. The PSOPF is not a pension plan created pursuant to the provisions of the Illinois Pension Code and is therefore not subject to the provisions of the Illinois Pension Code. In December 2011 the Village amended the provisions of the PSOPF to provide for a second tier of pension benefits that apply only to persons that first become a public safety officer on or after January 1, 2012. In August 2016 the Village again amended the provisions of the PSOPF to provide for a third tier of pension benefits that apply to persons that first become a public safety officer on or after August 10, 2016. The assets of the PSOPF consist of employee contributions funded through payroll deductions commencing April 1, 1975, employer contributions from the Village (which are not determined on an actuarial basis) and earnings from the investment of the assets of the PSOPF.

Pursuant to the Pension Ordinance, the Village is responsible for funding the PSOPF to the extent that the other assets of the PSOPF are not sufficient to meet the PSOPF’s obligations to annuitants and their beneficiaries. The Pension Ordinance authorizes the Village to make payments to the PSOPF. As of December 31, 2016 (the most recently audited fiscal year of the Village), the PSOPF had an aggregate membership of 78 active members, 72 inactive members, which includes 71 retired members and beneficiaries and 1 disabled retiree. As of December 31, 2016, based upon the most recent available actuarial valuation of the PSOPF, the total pension liability of the PSOPF was $111,944,867, the plan fiduciary net position was $94,162,344, and the net pension liability representing pension benefits earned in prior years, which pursuant to standard actuarial practices are not fully funded, was $17,782,523. The market value of the assets includes the value of the assets in the Village of Rosemont Post- Employment Benefits Trust (the “Benefits Trust”) as of January 1, 2016. The ratio of the plan

19 fiduciary net position to the total pension liability of the PSOPF based upon the most recent actuarial valuation was 84.11% as of December 31, 2016. See APPENDIX A – “Audited Financial Statements for Fiscal Year 2016 – Notes to Financial Statements – Note 4 – Public Safety Officers’ Pension Plan (PSOP) – Changes in the Net Pension Liability.”

During 2007, the Village issued $35,000,000 Taxable General Obligation Benefit Funding Bonds, Series 2007A (the “Series 2007A Bonds”). In 2015, the Village issued $37,595,000 Taxable General Obligation Bonds, Series 2015A (the “Series 2015A Bonds”). The proceeds of the Series 2007A Bonds and the Series 2015A Bonds were deposited in the Benefits Trust to be used to fund future benefits of the PSOPF and other post-employment benefits. The amounts held and invested in the Benefits Trust are accounted for in the Pension Trust Fund as “Restricted Retirement Trust” and may be transferred to the PSOPF as permitted by Village ordinance. The balance held in the Benefit Trust as of December 31, 2016 is $81,776,962. Amounts held and invested in the PSOPF are accounted for in the financial statements of the Village under Pension Trust. For further detail on the PSOPF, see APPENDIX A – “Audited Financial Statements for Fiscal Year 2016 – Statement of Fiduciary Net Position – Pension Trust Public Safety Officers’ Fund,” “– Notes to Financial Statements – Note 4” and “– Required Supplementary Information – Schedule of Funding Progress and Employer Contribution.”

OPEB

Effective for the fiscal year ended December 31, 2008, the Village implemented Government Accounting Standards Board Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions (the “Statement”), for certain postemployment health care benefits provided by the Village. The requirements of the Statement were implemented prospectively, with recognition of liability accumulated from years prior to 2008 being amortized over thirty years, commencing with the fiscal year 2008 liability. As of December 31, 2015, the most recent actuarial valuation date for the purpose of the implementation of the Statement requirements, the Village has a Net Other Postemployment Benefit (“OPEB”) obligation payable of $31,312,539, and an unfunded actuarial accrued liability of $113,320,170.

The Village does not advance-fund and has not established a funding methodology for the annual OPEB costs or the net OPEB obligation. The Village currently pays for OPEB benefits on a pay-as-you-go basis. It is expected that approach will continue. Consequently, no funded ratio is available for OPEB obligations. The following table shows, for the last three calendar years, the annual cost, percentage of cost contributed, and net obligation for the Other Postemployment Benefit obligations of the Village.

Annual Percentage OPEB of OPEB Net OPEB Year Cost Cost Contributed Obligation 2016 $9,283,826 28.8% $31,312,539 2015 $8,888,806 25.3% $24,701,279 2014 $5,807,737 19.3% $18,058,640

20 For further detail on the Village’s OPEB obligations, see APPENDIX A – “Audited Financial Statements for Fiscal Year 2016 – Notes to Financial Statements – Note 4” and “– Required Supplementary Information – Schedule of Funding Progress and Employer Contributions.”

Investment Policy

The Village, in compliance with Section 2.5 of the Public Funds Investment Act (30 ILCS 235/2.5), has adopted by ordinance an investment policy. The investment policy allows funds in the Benefit Funding Trust which are restricted to being used to fund Village employee pensions and other post-employment benefits to be invested differently than other Village funds which are being held to finance current and short-term financial obligations of the Village.

The stated purpose of the investment policy is to obtain a maximized return within the confines of the purposes for which the investment funds are intended to be used and that in this context, funds are to be managed in a prudent manner as it relates to rates of return, investment vehicles and diversification among individual investments.

The investment policy grants the authority to manage the Village’s investment program to the Village’s Finance Officer who is designated as the Village’s “chief investment officer” for purposes of the Public Funds Investment Act. The standard to be used by the Finance Officer in managing the investment program is the “prudent person” standard. The investment policy contains an ethics and conflict of interest provision which prohibits the Finance Officer and other Village employees involved in the investment process from engaging in personal business activity that could conflict with the proper management of the investment program or impair their ability to make impartial decisions. The policy requires disclosure of any potential conflicting interest by the Finance Officer and other Village employees involved in the investment process. The Finance Officer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Village are protected from loss, theft or misuse. The Finance Officer is also required to prepare an investment report for the Village’s Corporate Authorities on a quarterly basis. This report is required to include an analysis of the status of the current investment portfolio, a description of transactions made over the last quarter and a statement of the market value of the investment portfolio at the end of the quarter. This report is to be prepared in a manner that will allow the Village to determine if investment activities have conformed to the investment policy.

The Finance Officer has the authority, subject to the approval of the Village’s Corporate Authorities, to appoint one or more investment advisors. Investment advisors hold a fiduciary position with respect to the Village and are required to be registered under the federal Investment Advisors Act or the federal Investment Company Act of 1940 and the Illinois Securities Law of 1953 or to be a bank or trust company or life insurance company authorized to do business in Illinois.

The investment policy limits the types of investment that can be made with Village funds. The types of investments that can be made are also subject to the restrictions contained in the Public Funds Investment Act. Except as described in the following paragraph, the types of investments allowed generally are obligations of the United States and U.S. government

21 agencies; bonds of school districts, counties, townships and municipalities; savings accounts; certificates of deposit and similar types of deposits; money market mutual funds; repurchase agreements; and subject to certain limitations, highly rated debt obligations of U.S. corporations having assets exceeding $500,000,000. The policy explicitly prohibits investment on a margin basis and also explicitly prohibits the investment of Village funds in commodities or options, common or preferred stock, derivatives or in any investment which would violate Illinois law.

The investment policy allows Village funds that are restricted to being used to fund the Village’s pension obligations and post-employment benefits obligations to be invested in the same or similar type of investments as are allowed under Illinois law for the investment of assets held by public pension funds. These types of investments include mutual funds that have been in operation for at least one year, have net assets greater than $250 million dollars and are managed by an investment company that is registered under the federal Investment Company Act of 1940 and the Illinois Securities Law of 1953. They also include common and preferred stocks authorized for investments of trust funds under Illinois Law which are traded on a national securities exchange and are issued by a corporation existing under the laws of the United States or one of the states of the United States. The policy imposes restrictions on the percentage of funds that can be invested in the stock of any single corporation and the total percentage of funds that can be invested in mutual funds and common or preferred stock. The policy also prohibits the investment of funds that are restricted to being used to fund the Village’s pension obligations and post-employment benefits obligations on margin or the investment of funds in commodities, options, derivatives or any investment that would violate applicable Illinois law.

The investment policy provides that one or more investment advisors may be appointed by the Village’s Mayor subject to confirmation by the Village’s Corporate Authorities to manage and direct the investment of the Village funds that are restricted to being used to fund the Village’s pension obligations and post-employment benefit obligations. The investment advisor holds a fiduciary position with respect to the Village and is required either to be registered under the federal Investment Advisors Act or the federal Investment Company Act of 1940 and the Illinois Securities Law of 1953 or to be a bank or trust company or life insurance company authorized to do business in Illinois. Marquette Associates, Inc. is currently serving as the investment advisor.

Financial Statements

The Village’s audited financial statements for the year ended December 31, 2016 are presented in Appendix A of this Official Statement.

REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES

Assessment

The Assessor of Cook County (the “County”) is responsible for the assessment of all taxable real property within the County, including taxable real property in the Village, except for certain railroad property and pollution control facilities which are assessed directly by the Illinois

22 Department of Revenue (the “Department of Revenue”). For triennial reassessment purposes, the County is divided into three sections: west and south suburbs, north and northwest suburbs, and the City of Chicago. The property within the Village was most recently reassessed for Levy Year 2016, with taxes levied based on that reassessment payable in calendar year 2017.

Real property in the County is separated into classifications 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 current classification percentages range from 10 to 25 percent depending on the type of property (e.g., residential, industrial, commercial) and whether it qualified for certain incentives for reduced rates.

The County Board of Commissioners has adopted various amendments to the County’s Real Property Assessment Classification Ordinance (the “Classification Ordinance”), pursuant to which the Assessed Valuation of real property is established. Among other things, these amendments have reduced certain property classification percentages, lengthened certain renewal periods of classifications and created new property classifications.

The Assessor has established procedures enabling taxpayers to contest their tentative Assessed Valuations. Once the Assessor certifies final Assessed Valuations, a taxpayer can seek review of its assessment by filing a complaint with the County Board of Review (the “Board of Review”). The Board of Review consists of three commissioners, each elected by an election district in the County. The Board of Review is empowered to review and adjust Assessed Valuations set by the Assessor.

Owners of property are able to appeal decisions of the Board of Review to the Illinois Property Tax Appeal Board (the “PTAB”), a state-wide administrative body, or to the Circuit Court of Cook County (the “Circuit Court”). The PTAB has the power to determine the Assessed Valuation of real property based on equity and the weight of the evidence. Depending on the amount of the proposed change in Assessed Valuation, taxpayers may appeal decisions of the PTAB to either the Circuit Court or the Illinois Appellate Court under the Illinois Administrative Review Law.

In a series of recent PTAB decisions, the PTAB reduced the assessed valuations of certain commercial and industrial property in the County based upon the application of median levels of assessment derived from Illinois Department of Revenue sales-ratio studies instead of utilizing the assessment percentages provided in the Classification Ordinance. On appeal, the Illinois Appellate Court determined that it was improper for the PTAB, on its own initiative, to use the sales-ratio studies when such studies were not even raised as an issue by the taxpayer before the Board of Review or in its appeal to the PTAB.

The Appellate Court decisions do not preclude a taxpayer in a properly presented case from introducing into evidence sales-ratio studies for the purpose of obtaining an assessment below that which would result from application of the Classification Ordinance. No prediction can be made whether any currently pending or future case would be successful. The Village believes that the impact of any such case on the Village would be minimal, as the ability of the Village to levy or collect real property taxes would be unaffected.

23 As an alternative to seeking review of Assessed Valuations by the PTAB, taxpayers who have first exhausted their remedies before the Board of Review may file an objection in the Circuit Court of Cook County. 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 the Assessed Valuation, and thus reduce the amount of taxes due, by issuing a Certificate of Error.

All reviews of assessments, whether before the Board of Review, the PTAB or the courts are decided on a case-by-case basis.

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, the Illinois 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 Illinois. Under Illinois 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. Adjustments in Assessed Valuation made by the PTAB or the courts are not reflected in the Equalization Factor.

Once the Equalization Factor is established, the Assessed Valuation, as revised by the Board of Review, is multiplied by the Equalization Factor to determine the equalized assessed valuation (the “Equalized Assessed Valuation” or “EAV”) of that parcel. The Equalized Assessed Valuation for each parcel is the final property valuation used for determination of tax liability. The aggregate Equalized Assessed Valuation for all parcels in any taxing body’s jurisdiction, after reduction for all applicable exemptions, 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 Equalization Factor for a given year is used in computing the taxes extended for collection in the following year.

The following table sets forth the Equalization Factor for the County for the last ten tax Levy Years:

2007 2.8439 2012 2.8056 2008 2.9786 2013 2.6621 2009 3.3701 2014 2.7253 2010 3.3000 2015 2.6685 2011 2.9706 2016 2.8032 Source: Cook County Clerk’s Office.

Exemptions

The Illinois Property Tax Code currently provides for a number of different homestead exemptions. These exemptions are discussed below.

24 An annual General Homestead Exemption provides that the EAV of certain property owned and used for residential purposes (“Residential Property”) may be reduced by $6,000 for assessment years 2009 through 2011 (the “General Homestead Exemption”). For taxable years 2012 and thereafter, the maximum reduction is $7,000 in Cook County.

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 2003 for properties located in the City, 2004 for properties located in the northern and northwestern portions of the County and 2005 for properties located in the western and southern portions of the County. The Base Homestead Value is the EAV of the homestead property minus the General Homestead Exemption for that year: $6,000 for the year 2009 and thereafter.

For properties in the City, the Alternative General Homestead Exemption cannot exceed $20,000 for assessment year 2009 (with taxes payable in 2010), $16,000 for assessment year 2010 (with taxes payable in 2011) and $12,000 for the 2011 tax year (with taxes payable in 2012). For properties in the northern and northwestern portions of the County, the Alternative General Homestead Exemption cannot exceed $20,000 for assessment year 2009 and 2010 (with taxes payable in 2010 and 2011, respectively), and $16,000 for assessment year 2011 (with taxes payable in 2012) and $12,000 for assessment year 2012 (with taxes payable in 2013). For properties in the western and southern portions of the County, the Alternative General Homestead Exemption cannot exceed $26,000 for assessment year 2009 (with taxes payable in 2010), $20,000 for assessment year 2010 and 2011 (with taxes payable in 2011 and 2012, respectively), $16,000 for assessment year 2012 (with taxes payable in 2013) and $12,000 for assessment year 2013 (with taxes payable in 2014).

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

25 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 $75,000 per year 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. For taxable years 2012 and thereafter, the maximum reduction is $5,000 in Cook County. 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 $55,000 for assessment years 2008 and thereafter. 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

26 homestead and does not remarry. Moreover, if the property is sold by the surviving spouse, then an exemption amount not to exceed the amount specified by the current property tax roll may be transferred to the spouse’s new residence, provided that it is the spouse’s primary residence and the spouse does not remarry. 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 budgeting process of all of the taxing districts in the County (the “Taxing Districts”), proceedings can be adopted by the governing bodies of each Taxing District in each year authorizing the raising of revenue by direct taxes on all taxable real property. This is known as the tax levy, and must be certified to and filed in the County Clerk’s Office. The remaining administration and collection of the real estate taxes is statutorily assigned to the County Clerk and the County Treasurer, who is also the County Collector.

The tax levy is adopted by each Taxing District and filed with the County Clerk for each year (the “Levy Year”). During the year following the Levy Year (the “Extension Year”), the County Clerk computes the annual tax rate for the Levy Year for each Taxing District by dividing its levy by its Assessment Base. If the rate as calculated exceeds any statutory limits, the rate actually used will be the maximum allowed. By virtue of its constitutional “home rule” powers, the Village does not have a statutory tax rate limit. The County Clerk then computes the total tax rate applicable to each parcel of real property by aggregating the tax rates of all Taxing Districts levying taxes on that particular parcel. The County Clerk enters that tax in the books (the “Warrant Books”) which are prepared for the County Collector along with the Assessed Valuation and Equalized Valuation. 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 taxpayers in the County. Such tax bills relate to the Levy Year but are issued during the Extension Year.

Collection

Property taxes are collected by the County Collector who remits to each Taxing District 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. The first installment is equal to 55% of the prior year’s tax bill.

27 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. Taxes on railroad real property used for transportation purposes are payable in one lump sum on the same date as the second installment.

The following table sets forth the second installment penalty date during the last 10 years; the first installment penalty date has been March 2 for all years. Second Installment Tax Year Penalty Date 2016 August 1, 2017 2015 August 1, 2016 2014 August 1, 2015 2013 August 1, 2014 2012 August 1, 2013 2011 August 1, 2012 2010 November 1, 2011 2009 December 13, 2010 2008 December 1, 2009 2007 November 3, 2008

The County may provide for tax bills to be payable in four installments instead of two. However, the County has not required payment of tax bills in four installments. During the periods of peak collections, tax receipts are forwarded to each Taxing District on a weekly basis. Upon receipt of taxes from the County Collector, the Village 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 18% 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.

28 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.

Illinois Truth in Taxation Law

The Illinois Truth in Taxation Law, contained within the Property Tax Code, imposes procedural limitations on a Taxing District’s real estate taxing powers and requires that notice in prescribed form must be published if the aggregate annual levy is estimated to exceed 105 percent of the levy of the preceding year, exclusive of levies for debt service, levies made for the purpose of paying amounts due under public building commission leases and election costs. A public hearing must be held, which may not be in conjunction with the budget hearing of the Taxing District on the adoption of the annual levy. No amount in excess of 105 percent of the preceding year’s levy may be used as the basis for issuing tax bills to property owners unless the levy is accompanied by certification of compliance with the foregoing procedures. The Truth in Taxation law does not impose any limitations on the rate or the amount of the levy to pay principal of and interest on the Taxing District’s general obligation bonds and notes. As of the date of this Official Statement, the Village is in compliance with the Truth in Taxation Law. The provisions of the Truth in Taxation Law would not serve to limit or restrict in any way the collection of the Pledged Taxes for the payment of debt service on the Bonds.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

29 STATISTICAL INFORMATION

Statements of Revenues and Expenses of Proprietary Funds

The following table sets forth the accounting for the proprietary funds of the Village for the years 2012-2016. These funds are maintained with respect to the Proprietary Facilities. See “THE VILLAGE OF ROSEMONT – Facilities Owned and Operated by the Village.”

Statements of Revenues and Expenses of Proprietary Funds Village of Rosemont Proprietary Funds 2012-2016 Statements of Revenues and Expenses

2016 2015 2014 2013 2012 Donald E. Stephens Convention Center Operating Income $16,700,829 $19,067,451 $22,204,209 $17,174,152 $14,758,370 Operating Expenses 15,810,005 15,511,250 16,192,028 15,346,361 15,659,222 Operating Income (Loss) 890,824 3,556,201 6,012,181 1,827,791 (900,852) Other Revenue (Expense) 2,008,970 2,017,746 1,960,466 1,691,012 1,548,364 Income (Loss) 1 $2,899,794 $ 5,573,947 $ 7,972,647 $ 3,518,803 $ 647,512

Allstate Arena Operating Income $19,084,569 $20,995,309 $20,929,762 $16,367,419 $20,310,007 Operating Expenses 16,869,681 18,360,269 17,896,902 16,313,909 18,557,590 Operating Income (Loss) 2,214,888 2,635,040 3,032,860 53,510 1,752,417 Other Revenue (Expense) 3,192 2,725 2,851 (34,525) 5,278 Income (Loss) 1 $ 2,218,080 $ 2,637,765 $ 3,035,711 $ 18,985 $ 1,757,695

Rosemont Theatre Operating Income $ 5,939,725 $ 4,221532 $ 3,776,918 $ 4,390,726 $ 5,634,110 Operating Expenses 5,791,726 5,749,095 4,918,289 5,533,295 6,424,232 Operating Income (Loss) 147,999 (1,527,563) (1,141,371) (1,142,569) (790,122) Other Revenue (Expense) – (1,897) (5,655) (27,923) (44,334) Income (Loss) 1 $ 147,999 $ (1,529,460) $ (1,147,026) $ (1,170,492) $ (834,456)

Other Proprietary Funds Operating Income $14,113,495 $14,637,804 $13,585,333 $12,708,651 $ 9,303,635 Operating Expenses 17,737,392 16,828,651 15,806,425 12,915,534 10,118,936 Operating Income (Loss) (3,623,897) (2,190,847) 2,221,092 (206,883) (815,301) Other Revenue (Expense) (98,412) – 704,413 (257,911) (1,671,305) Income (Loss) 1 $ (3,722,309) $ (2,190,847) $ 1,516,679 $ (464,794) $ (2,486,606)

TOTAL Operating Income $55,838,618 $58,922,096 $60,496,222 $50,640,948 $50,006,124 Operating Expenses 56,208,804 56,449,265 54,813,644 50,109,099 50,759,982 Operating Income (Loss) (370,186) 2,472,831 5,682,578 531,849 (753,858) Other Revenue (Expense) 1,913,750 2,018,574 2,662,075 1,370,653 (161,997) Income (Loss) 1 $ 1,543,564 $ 4,491,405 $ 8,344,653 $ 1,902,502 $ (915,855) ______1 Before Transfers and Capital Contributions

30 Taxation of Property

The final installment of property taxes for the tax year 2016 collected in calendar year 2017 was due August 1, 2017 (see “REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES – Collection”). As a result, statistical information for the tax year 2016 may not be complete to the extent based on information derived from collections, as may be noted in the charts set forth under this caption. In such instances, only information related to tax year 2015 and prior years is included.

Village Equalized Assessed Valuation and Tax Rates

2016 2015 2014 2013 Type EAV Percent EAV Percent EAV Percent EAV Percent Residential $ 57,254,647 12.579 $ 46,841,226 11.477 $ 48,264,678 18.653 $ 48,091,564 18.480 Farm – – – – – – – – Commercial 394,799,011 86.740 358,482,024 87.837 207,291,732 80.115 166,421,482 63.949 Industrial 2,660,856 0.585 2,402,217 0.589 2,859,672 1.105 45,445,918 17.463 Railroad $ 436,267 0.096 397,375 0.097 328,140 0.127 280,402 0.108 Total (1) $455,150,781 100.000 $408,122,842 100.000 $258,744,222 100.000 $260,239,366 100.000 Tax Rates $2,432 $2.547 $2.380 $2.367 (per $100) Source: Office of the Cook County Clerk.

(1) Excludes the “incremental value” of the Village’s six tax increment financing project areas, i.e., the Equalized Assessed Valuation of each project area in excess of the “initial value” of such project area.

Village Tax Extensions and Collections

Tax Levy Year/Collection Taxes Extended Amount Percent Year Levy Amount Collected (1) Collected (2) 2016/2017 $42,791,733 $42,512,825 99.35% 2015/2016 37,927,905 37,420,071 98.66 2014/2015 44,622,772 45,013,484 100.88 2013/2014 39,643,737 38,788,687 97.84 2012/2013 38,514,020 38,118,878 98.97 Source: Office of the Cook County Clerk and Office of the Cook County Treasurer. (1) For all Taxing Districts within Village; excluding delinquent taxes collected in years subsequent to normal collection year, interest earned, scavenger sale and general forfeiture collections, and taxes allocated to tax increment financing project areas. (2) Cook County property taxes are collected primarily in March and August of each year. The system of distributing property tax collections used by Cook County makes special allocations (such as those associated with tax increment financing) only after distributions of general taxes; accordingly, distributions of general taxes to the Village were proportionately higher early in the collection year. Tax year 2016 collections are as of October 4, 2017.

31 TIF Initial Values, Current Values and Incremental Values

The initial values, current values and incremental values (the excess of current values over initial values) of the TIF Areas currently in the Village (and TIF Area 1 that expired at the end of calendar year 2015) and the total EAV’s of the Village for the Levy Years shown are as follows: TIF 2016 2015 2014 2013 2012 Area(1) Initial Values(2) 1 – – $ 12,345,940 $ 12,345,940 $ 14,137,398 3 $65,934,752 $ 65,934,752 65,934,752 65,934,752 65,934,752 4 16,792,103 24,807,644 24,807,644 24,807,644 24,807,644 5 2,427,325 2,427,325 2,427,325 2,427,325 2,427,325 6 27,888,067 22,490,537 8,248,168 8,248,168 – 7 32,772,218 32,772,218 32,772,218 – – 8 4,895 – – – –

Current Values 1 – – $169,348,156 $170,068,540 $207,073,947 3 $237,547,420 $214,353,263 200,006,200 185,210,089 202,638,693 4 121,321,022 94,443,521 95,536,483 66,228,445 34,703,198 5 13,171,758 11,081,557 12,881,033 12,643,549 13,689,220 6 46,305,189 36,165,134 7,774,288 7,887,505 – 7 31,505,338 26,662,343 27,597,906 – – 8 146,676 – – – –

Excess Current 1 – – $157,002,216 $157,722,600 $192,936,549 Over Initial Values 3 $173,403,791 $150,209,634 135,862,571 121,066,460 138,495,064 (Incremental Value) 4 106,020,282 79,384,300 80,433,842 48,345,577 26,361,489 5 10,744,433 8,654,232 10,453,708 10,216,224 11,261,895 6 24,517,837 15,724,032 – – – 7 2,854,104 – – – – 8 141,781 – – – –

Total Incremental Value $317,682,228 $253,972,198 $383,752,337 $337,350,861 $369,054,997

Total Incremental Value (Taxable) $455,150,781 $408,122,882 $258,744,222 $260,239,366 $265,374,416

Total Village EAV $772,833,009 $662,095,080 $642,496,559 $597,590,227 $634,429,413 Source: Office of the Cook County Clerk. (1) TIF Area 1 expired on 12/31/15. TIF Area 2 expired on 12/31/05. TIF Area 6 was created by the Village in calendar year 2013. TIF Area 7 was created by the Village in calendar year 2014. The Village created TIF Area 8 in calendar year 2016 and is currently being extended to a total term of 35 years. (2) Increases and decreases in Initial Values from year-to-year result from reassignments of specific properties within the applicable TIF.

32 Representative Tax Rates in Leyden Township (Per $100 equalized assessed valuation) Tax Year 2016 2015 2014 2013 2012 Village of Rosemont(1)(2) ...... $2.432 $2.547 $2.380 $2.367 $2.266

Cook County ...... 0.533 0.552 0.568 0.560 0.531 Cook County Forest Preserve ...... 0.063 0.069 0.069 0.069 0.063 Metropolitan Water Reclamation District ...... 0.406 0.426 0.430 0.417 0.370 Consolidated Elections ...... 0.000 0.034 0.000 0.031 0.000 Leyden Township(3) ...... 0.289 0.323 0.308 0.302 0.257 Rosemont Park District ...... 0.391 0.433 0.449 0.437 0.414 School District Number 78 ...... 1.571 1.718 1.847 1.746 1.698 High School District Number 212 ...... 3.115 3.471 3.319 3.264 2.830 Community College District Number 504 ...... 0.330 0.352 0.336 0.325 0.269 Total Typical Tax Rate ...... $9.130 $9.925 $9.706 $9.518 $8.698 Source: Office of the Cook County Clerk - tax rates by Levy Year. (1) The Village rates shown relate only to the unabated portions of debt service levies for a portion of its outstanding general obligation debt (other than bonds issued in connection with tax increment financing projects). (2) Of the Village’s total 2016 Equalized Assessed Valuation, $352,617,863 or 77.47% is located in Leyden Township. (3) Includes rates for township, road and bridge and general assistance. Representative Tax Rates in Maine Township (Per $100 equalized assessed valuation) Tax Year 2016 2015 2014 2013 2012 Village of Rosemont(1)(2) ...... $2.432 $2.547 $2.380 $2.367 $2.266

Cook County ...... 0.533 0.552 0.568 0.560 0.531 Cook County Forest Preserve ...... 0.063 0.069 0.069 0.069 0.063 Metropolitan Water Reclamation District ...... 0.406 0.426 0.430 0.417 0.370 Consolidated Elections ...... 0.000 0.034 0.000 0.031 0.000 Maine Township(3) ...... 0.191 0.220 0.210 0.210 0.168 Northwest Mosquito Abatement ...... 0.010 0.011 0.013 0.013 0.011 Rosemont Park District ...... 0.391 0.433 0.449 0.437 0.414 School District Number 62 ...... 3.921 4.487 4.293 4.255 3.490 High School District Number 207 ...... 2.507 2.901 2.739 2.722 2.215 Community College District Number 535 ...... 0.231 0.271 0.258 0.256 0.219 Total Typical Tax Rate ...... $10.685 $11.951 $11.409 $11.337 $9.747 Source: Office of the Cook County Clerk- tax rates by Levy Year. (1) The Village rates shown relate only to the unabated portions of debt service levies for a portion of its outstanding general obligation debt (other than bonds issued in connection with tax increment financing projects). (2) Of the Village’s total 2016 Equalized Assessed Valuation, $102,532,918 or 22.53% is located in Maine Township. (3) Includes rates for township, road and bridge and general assistance.

33 Largest Taxpayers 2016 Percentage of Total District Taxable Equalized Taxable Taxpayer Assessed Value(1) Rank Assessed Value(2) Property Tax Department $ 88,966,109 1 11.51% Thomson Reuters 74,864,589 2 9.69% Hyatt Corporation 52,222,158 3 6.76% AGWOA Columbia Center 34,766,144 4 4.50% SPUS6 One Ohare Ctr 28,618,110 5 3.70% Bletchley Hotel 28,276,786 6 3.66% Clarion Partners 24,023,324 7 3.11% PD Rosemont Assoc 2 21,170,655 8 2.74% Balmoral Business Camp 18,213,579 9 2.36% CPO Hospitality LLC 17,896,265 10 2.32% Total $ 389,017,719 50.34% Source: Offices of the Cook County Clerk. (1) Includes property parcels with 2016 Equalized Assessed Valuations over approximately $100,000. (2) Uses the Village’s total 2016 Equalized Assessed Valuation (including “incremental values”) of $772,833,009. The Village’s taxable 2016 Equalized Assessed Valuation is $455,150,781. Major Employers Approximate Number Name Product or Service of Employees MB Financial Bank Financial Co. Headquarters 1,200 US Foods, Inc Food Distributor 1,200 Swissport (1) Aviation Services 1,100 Village of Rosemont Municipality 720 Hyatt Regency O'Hare Hotel 565 Central States Funds Union Health and Welfare Fund 550 Cisco Systems, Inc. Telecommunications Equipment 519 Xerox Capital Services Photographic Equipment & Supplies 435 American Academy of Orthopedic Surgeons Medical Organization HQ 400 Life Source Non-Profit 400 Wintrust Financial Corp. Financial Corp HQ and Mortgage Co 400 Lowes Hotel Rosemont Hotel 340 Reyes Holdings, LLC Food and Beverage 300 Distribution Culligan Water Softener HQ 300 U.S. Customs and Border Protection Government 300 Life Fitness, Inc. Exercise Equipment 300 Sources: Rosemont Chamber of Commerce, April, 2017; 2016 Illinois Services Directory, 2016 Illinois Manufacturers Directory and 2016 Harris Illinois Industrial Directory. (1) Address is in Rosemont but most employees work at O’Hare International Airport.

34 Hotel Tax

Village of Rosemont Hotel Room Tax Receipts 2010-2016

2016 2015 2014 2013 2012 HOTEL TAX REVENUES $14,305,902 $13,549,725 $12,935,122 $11,595,864 $10,804,081 ROOMS AVAILABLE 5,920 5,720 5,562 5,562 5,562

______Source: The Village of Rosemont.

Sales Tax

Village of Rosemont Sales Tax Receipts 2012-2016

2016 2015 2014 2013 2012 SALES TAX REVENUES1 $15,137,419 $14,652,414 $13,600,300 $9,213,550 $6,453,081

______Source: The Village of Rosemont. 1 Effective July 1, 2017 (State fiscal year 2018, Village mid-fiscal year 2017), the State began imposing a 2% “collection fee” on sales taxes collected on behalf of local governments by the Illinois Department of Revenue. The “fee” is collected by withholding amounts constituting the fee from Local Government Distributive Fund distributions. The fee will not apply to the 1.25% local share of the State’s mandatory 6.25% sales tax; only to additional levies beyond that amount that are imposed by local governments. The Village does not expect the collection of this fee to have a material impact on its finances.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

35 DEBT INFORMATION

Legal Debt Margins The Village is not subject to any constitutional debt limit nor has the General Assembly of the State of Illinois imposed a statutory debt limit on home rule municipalities. Overlapping General Obligation Bonded Debt (As of September 29, 2017) 2016 Equalized Outstanding Applicable to Village

Assessed Valuation(1) Bonds(2) Percent(3) Amount Cook County ...... $143,483,256,019 $3,213,141,750 0.317 $ 10,192,576 Cook County Forest Preserve ...... 143,483,256,019 90,660,000 0.317 287,587 Metropolitan Water Reclamation District(4) ...... 140,752,201,171 2,670,528,000 0.323 8,635,694 Rosemont Park District ...... 461,794,730 1,203,000 98.663 1,186,921 School District #62 1,718,085,335 0 5.983 0 School District #81 ...... 333,967,365 28,386,333 1.239 351,585 High School District #207 ...... 4,629,887,673 15,600,000 2.217 345,814 High School District #212 ...... 2,158,354,928 31,845,000 16.521 5,261,211 Triton Comm. Coll. Dist. #504 8,109,255,966 0 4.375 0 Oakton Comm. Coll. Dist. #535 ...... 22,288,152,310 29,895,000 0.460 137,542 Total Overlapping Bonded Debt ...... $26,398,930

Selected Debt Information (As of September 29, 2017)

Equalized Assessed Valuation (2016) ...... $455,150,781 Estimated True Valuation (2016) (5) ...... $1,365,452,343 Direct General Obligation Bonded Debt (6) ...... $416,960,000 Percentage of Equalized Assessed Valuation ...... 91.61% Percentage of Estimated True Valuation ...... 30.54% Per Capita (2010 population 4,202) ...... $99,229 Direct and Overlapping General Obligation Bonded Debt ...... $443,358,930 Percentage of Equalized Assessed Valuation ...... 97.41% Percentage of Estimated True Valuation ...... 32.47% Per Capita (2010 population 4,202) ...... $105,511 ______Source: Cook County Clerk. (1) Excludes TIF increment, if any. (2) Excludes the following amounts of alternate revenue bonded debt: Cook County Forest Preserve District - $51,245,000; Metropolitan Water Reclamation District - $99,080,000; School District #62 - $84,120,000; and Triton Community College District #504 - $45,205,000. (3) Based on 2016 Equalized Assessed Valuations, the most recent available (percentages rounded). (4) Includes IEPA Revolving Loan Fund Bonds ($806,563,000). Source: audited financial statement of the Village for the year ended December 31, 2016. (5) In Cook County, Illinois, the estimated true valuation is assumed to be three times the Equalized Assessed Valuation. (6) Includes all outstanding bonds of the Village as of the date hereof. Excludes the refunded 2011A Bonds and assumes the issuance of the Bonds.

36 Future Financings Absent refunding opportunities, the Village has no current plan to issue any bonds in the remainder of this year or in calendar 2018.

Summary of Village Outstanding Indebtedness The table on the following page sets forth the general obligation indebtedness of the Village as of September 29, 2017 and assuming issuance of the Bonds. In the case of each particular series of bonds representing the general obligation indebtedness of the Village, such bonds are payable from ad valorem taxes separately levied on all taxable property in the Village, without limitation as to rate or amount. It has been the past practice of the Village to abate such property tax levies on an annual basis to the extent that the Village has made deposits for the payment of debt service on particular series of general obligation bonds pursuant to the respective ordinances related to such bonds from other sources of funds legally available for the purpose.

The sources of funds available to the Village for the payment of debt service on its general obligation bonds other than property taxes include, without limitation, tax increment revenues (see “THE VILLAGE OF ROSEMONT – TIF Areas”), sales taxes, amusement taxes, hotel taxes, food and beverage taxes and other venue revenues (collectively, “Non-Property Tax Levy Revenues”). In the table on the following page, the Village has projected the amount of Non-Property Tax Levy Revenues that will be generated in the years 2017 through 2046. This information constitutes a forward-looking statement as discussed under “INTRODUCTION.” The availability of a particular Non-Property Tax Levy Revenue for application to debt service on any particular series of outstanding bonds may be subject to legal restrictions. For example, tax increment revenues are only available for debt service on series of bonds the proceeds of which have financed redevelopment projects within the related TIF Area. On the other hand, other types of Non-Property Tax Levy Revenues, such as sales taxes, may be generally available for any lawful Village purpose. These factors have not been taken into account in the projection of the Non-Property Tax Levy Revenues shown in the table on the following page.

As shown on the table on the following page, assuming that the amounts of Non-Property Tax Levy Revenues projected are generated in the years shown and assuming that such revenues are all legally available to be applied to debt service on the Village’s outstanding general obligation indebtedness, the direct general obligation debt service of the Village net of the debt service projected to be paid from Non-Property Tax Levy Revenues, and therefore subject to be paid from property taxes levied by the Village, will amount to $159,636,358.

For financial information related to certain Non-Property Tax Levy Revenues, see “STATISTICAL INFORMATION” and information contained in the Village financial statements for the year ending December 31, 2016 which are attached to this Official Statement as APPENDIX A. The Village has reserved the authority to issue future obligations without limit having such lien or pledge on Non-Property Tax Levy Revenues as the Village may determine. The Bonds are not secured by and have no express lien or pledge on Non-Property Tax Levy Revenues. The Bonds are secured solely as described under “SECURITY FOR THE BONDS.”

VILLAGE OF ROSEMONT SCHEDULE OF GENERAL OBLIGATION DEBT SERVICE Debt Service* on Outstanding Debt Service* on Bonds and the Debt Service on Outstanding Non-Property Bonds Net of Non- Calendar Outstanding Debt Service Bonds and the Tax Levy Property Tax Levy Year Bonds(1) (2) on Bonds Bonds (2) Revenue (3) (4) Revenue (2) (3) (4) (5) 2017 $ 34,753,628 – $ 34,753,628 $ 25,516,712 $ 9,236,916 2018 43,260,582 $ 999,416 44,259,998 33,873,168 10,386,829 2019 43,370,439 922,538 44,292,977 33,900,647 10,392,330 2020 31,252,291 922,538 32,174,829 21,791,639 10,383,190 2021 29,562,803 922,538 30,485,341 20,285,743 10,199,598 2022 28,196,110 1,957,538 30,153,647 20,288,869 9,864,778 2023 28,510,721 1,965,788 30,476,508 20,608,419 9,868,089 2024 28,939,448 1,966,038 30,905,486 21,037,819 9,867,667 2025 28,932,264 1,958,538 30,890,802 21,025,584 9,865,218 2026 28,932,081 1,948,538 30,880,618 21,018,609 9,862,010 2027 28,934,113 1,936,038 30,870,151 21,008,263 9,861,888 2028 28,936,026 1,946,038 30,882,063 21,017,592 9,864,471 2029 22,695,594 1,952,288 24,647,881 21,024,858 3,623,023 2030 19,939,889 2,404,788 22,344,676 18,721,249 3,623,427 2031 16,527,431 2,408,069 18,935,500 16,890,689 2,044,811 2032 16,525,138 2,406,769 18,931,906 16,886,578 2,045,329 2033 16,531,775 2,408,356 18,940,131 16,894,461 2,045,670 2034 16,529,900 2,404,950 18,934,850 16,887,901 2,046,949 2035 16,528,863 2,406,375 18,935,238 16,889,020 2,046,218 2036 6,822,750 – 6,822,750 4,775,925 2,046,825 2037 6,818,250 – 6,818,250 4,772,775 2,045,475 2038 6,824,000 – 6,824,000 4,776,800 2,047,200 2039 6,819,000 – 6,819,000 4,773,300 2,045,700 2040 6,818,250 – 6,818,250 4,772,775 2,045,475 2041 6,821,000 – 6,821,000 4,774,700 2,046,300 2042 6,821,500 – 6,821,500 4,775,050 2,046,450 2043 6,819,250 – 6,819,250 4,773,475 2,045,775 2044 6,823,750 – 6,823,750 4,776,625 2,047,125 2045 6,819,000 – 6,819,000 4,773,300 2,045,700 2046 6,819,750 – 6,819,750 4,773,825 2,045,925 $583,885,595 $33,837,134 $617,722,729 $458,086,372 $159,636,358 (1) Includes all general obligation bonds, other than the Bonds, including those expected to be paid from Non-Property Tax Levy Revenues (i.e. Series 2007B, 2010A, 2010B, 2010C, 2011B, 2011C, 2011D, 2012A, 2012B, 2013B, 2014A, 2015A, 2016A and 2016B). Assumes refunding of Refunded Bonds. (2) Includes all general obligation bonds, including those expected to be paid from Non-Property Tax Levy Revenues. Excludes interest being paid from the Capitalized Interest Fund with respect to Series 2015A, 2016A and 2016B. (3) Non-Property Tax Levy Revenues include, without limitation, tax increment revenues, sales taxes, amusement taxes, hotel taxes, food and beverage taxes and other venue revenues. The availability of a particular Non-Property Tax Levy Revenue for application to debt service on any particular series of outstanding bonds may be subject to legal restrictions. This factor has not been taken into account in the projection of the Non-Property Tax Levy Revenues. Non-Property Tax Levy Revenues are not pledged as security for the payment of the Bonds and the Village has undertaken no obligation to apply such revenues to the payment of debt service on the Bonds. See “SECURITY FOR THE BONDS.” (4) Village projection. This information constitutes a forward-looking statement as discussed under “INTRODUCTION.” (5) Combined debt service on outstanding bonds and the Bonds if all projected Non-Property Tax Levy Revenues are applied to pay such debt service. * Preliminary; subject to change.

TAX MATTERS General

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

Subject to the Village’s compliance with the above-referenced covenants, under present law, in the opinion of Bond Counsel, interest on the is excludable from the gross income of the owners thereof for federal income tax purposes and is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations, but interest on the Bonds is taken into account, however, in computing an adjustment used in determining the federal alternative minimum tax for certain corporations.

In rendering its opinion, Bond Counsel will rely upon certifications of the Village with respect to certain material facts within the Village’s knowledge and upon the mathematical computation of the yield on the Bonds and the yield on certain investments by the Verification Agent. 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 Code includes provisions for an alternative minimum tax (“AMT”) for corporations in addition to the regular corporate tax in certain cases. The AMT, if any, depends upon the corporation’s alternative minimum taxable income (“AMTI”), which is the corporation’s taxable income with certain adjustments. One of the adjustment items used in computing the AMTI of a corporation (with certain exceptions) is an amount equal to 75% of the excess of such corporation’s “adjusted current earnings” over an amount equal to its AMTI (before such adjustment item and the alternative tax net operating loss deduction). “Adjusted current earnings” would include certain tax-exempt interest, including interest on the Bonds.

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

The issue price for original issue discount (as further discussed below) and for market discount purposes (the “OID 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 (excluding bond houses and brokers and similar persons or organizations acting in the capacity of underwriters, placement agents or wholesalers). The OID Issue Price of a maturity of the Bonds may be

39 different from the price set forth, or the price corresponding to the yield set forth, on the inside cover page hereof.

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

Owners of 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 OID 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 OID 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

40 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 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 Service has an ongoing program of auditing tax-exempt obligations to determine whether, in the view of the Service, interest on such tax-exempt obligations is includible in the gross income of the owners thereof for federal income tax purposes. It cannot be predicted whether or not the Service will commence an audit of the Bonds. If an audit is commenced, under current procedures the Service may treat the Village as a taxpayer and the Bondholders may have no right to participate in such procedure. The commencement of an audit could adversely affect the market value and liquidity of the Bonds until the audit is concluded, regardless of the ultimate outcome.

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.

State Tax Treatment

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.

CONTINUING DISCLOSURE

The Village will enter into a Continuing Disclosure Undertaking (an “Undertaking”) for the benefit of the beneficial owners of the Bonds to send certain information annually and to

41 provide notice of certain events to certain information repositories pursuant to the requirements of Section (b)(5) of Rule 15c2-12 (the “Rule”) adopted by the Securities and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934. A copy of the form of the Undertaking that will be entered into is attached as Appendix D.

A failure by the Village to comply with the Undertaking will not constitute a default under the Bond Ordinance and beneficial owners of the Bonds are limited to the remedies described in the Undertaking (See Appendix D). A failure by the Village 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 Bonds in the secondary market. Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market price.

During the last five years, the Village has failed to file event notices with respect to (i) a ratings downgrade of its general obligation bonds in 2012, (ii) a ratings downgrade of its general obligation bonds in 2013, (iii) ratings downgrades of insurers of Village general obligation bonds that occurred in 2009, 2010, 2011 and 2013, and (iv) a ratings upgrade of an insurer of Village general obligation bonds that occurred in 2014. In accordance with its continuing disclosure undertakings, the Village has filed a remedial notice with EMMA with respect to these events.

Other than the instances mentioned above, the Village has complied in all material respects with its continuing disclosure undertakings during the five years previous to the issuance of the Bonds.

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 Village. 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 Village, reviewed only those sections of this Official Statement involving the description of the Bonds and the security for the Bonds (excluding forecasts, projections, estimates or any other financial or economic information in connection therewith). This review was undertaken solely at the request and for the benefit of the Village and did not include any obligation to establish or confirm factual matters set forth herein. The proposed forms of opinions of Bond Counsel are included as Appendix B.

Certain legal matters are subject to the approval of Burke Burns & Pinelli, Ltd., Chicago, Illinois, counsel to the Underwriter, and Rosenthal, Murphey, Coblentz & Donahue, Chicago, Illinois, counsel to the Village.

42 VERIFICATION OF MATHEMATICAL COMPUTATIONS

Robert Thomas, CPA, LLC, independent certified public accountants, will verify the mathematical accuracy of certain computations regarding the adequacy of the maturing principal of and interest on United States Government Securities to pay the redemption prices and the interest when due on the Refunded Bonds. See “PLAN OF FINANCE.”

LITIGATION

General

There is no litigation pending against the Village which would adversely affect the Village’s ability to issue the Bonds.

The Village and/or its officers and employees are named in a number of suits relating to alleged personal injuries and property damage. The Village has insurance coverage with respect to the claims being made in these suits. It is anticipated that this insurance coverage is sufficient to cover any liability that the Village may have. In some instances, the Village’s insurance coverage is subject to a self-insured retention. This self-insured retention does not exceed $100,000 for any of the outstanding claims.

The Bonds

At the time of the issuance of the Bonds, Rosenthal, Murphey, Coblentz & Donahue, counsel to the Village will deliver an opinion that there is no litigation pending that seeks to restrain or enjoin the issuance, sale and delivery of the Bonds or that materially affects the validity of the Bonds or the validity of the security for the Bonds or any proceedings of the Village taken with respect to the issuance or sale of the Bonds.

UNDERWRITING

Mesirow Financial, Inc. (the “Underwriter”), has agreed to purchase the Bonds subject to certain conditions set forth in the Bond Purchase Agreement with the Village. The Bond Purchase Agreement provides that the obligations of the Underwriter to accept delivery of the Bonds are subject to various conditions of the Bond Purchase Agreement, but the Underwriter will be obligated to purchase all the Bonds if any Bonds are purchased. The Underwriter has agreed to purchase the Bonds at the aggregate purchase price of $______(which represents the aggregate principal amount of the Bonds, less an Underwriter’s discount of $______, plus net original issue premium of $______). The Underwriter reserves the right to join with dealers and other underwriters in offering the Bonds to the public.

RATINGS

The Bonds have been assigned ratings of “___” (______outlook) by S&P Global Ratings (“S&P”), and “______” (______outlook) by Moody’s Investors Service, Inc. (“Moody’s”), based upon the creditworthiness of the Village.

43 S&P is expected to assign the insured rating of “AA” (stable outlook) to the Bonds based upon the issuance of the Policy by the BAM at the time of delivery of the Bonds.

A rating reflects only the view of the rating agency giving such rating. Any explanation of the significance of such ratings may be obtained only from the respective rating agency. There is no assurance that any such rating will be maintained for any given period of time or that any such rating may not be raised, lowered or withdrawn entirely by the respective rating agency if in its judgment circumstances so warrant. Any change in or withdrawal of any such rating may have an effect on the price at which the Bonds may be resold.

FINANCIAL ADVISOR

Ring McAfee & Company, Inc. has served as financial advisor (the “Financial Advisor”) to the Village in connection with the issuance and sale of the Bonds. The Financial Advisor is not obligated to undertake any independent verification of, or assume any responsibility for, the accuracy, completeness, or fairness of the information contained in this Official Statement.

FINANCIAL STATEMENTS

The basic financial statements of the Village included in Appendix A to this Official Statement as of and for the year ended December 31, 2016 have been audited by Lauterbach & Amen, LLP, independent auditors, as stated in their report.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

44 AUTHORIZATION AND MISCELLANEOUS

The Village has furnished all information in this Official Statement relating to the Village. Any statements in this Official Statement involving matters of opinion or estimates, whether or not expressly so stated, are intended as such and not as representations of fact. There is no assurance that the facts will materialize as so opined or estimated.

The summaries of the provisions of the Bonds and the references to other materials not purporting to be quoted in full are only brief outlines of certain provisions thereof and do not constitute complete statements of such documents or provisions, and reference is hereby made to the complete documents relating to such matters for further information.

The Village has authorized the distribution of this Official Statement.

VILLAGE OF ROSEMONT, COOK COUNTY, ILLINOIS

By: Mayor

45 [THIS PAGE INTENTIONALLY LEFT BLANK]

APPENDIX A

AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR 2016

[THIS PAGE INTENTIONALLY LEFT BLANK]

VILLAGE OF ROSEMONT, ILLINOIS ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2016

VILLAGE OF ROSEMONT, ILLINOIS

ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2016

Prepared by: Finance Department

VILLAGE OF ROSEMONT, ILLINOIS

TABLE OF CONTENTS

PAGE

INTRODUCTORY SECTION

List of Elected Officials ...... i

FINANCIAL SECTION

INDEPENDENT AUDITORS' REPORT ...... 1 - 2

MANAGEMENT’S DISCUSSION AND ANALYSIS ...... MD&A 1 - 15

BASIC FINANCIAL STATEMENTS

Government-Wide Financial Statements Statement of Net Position ...... 3 - 4 Statement of Activities ...... 5 - 6

Fund Financial Statements Balance Sheet – Governmental Funds ...... 7 - 8 Reconciliation of Total Governmental Fund Balance to Net Position of Governmental Activities ...... 9 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds ...... 10 - 11 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities ...... 12 Statement of Net Position – Proprietary Funds...... 13 - 14 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds ...... 15 - 16 Statement of Cash Flows – Proprietary Funds ...... 17 - 18 Statement of Fiduciary Net Position ...... 19 Statement of Changes in Fiduciary Net Position ...... 20

Notes to the Financial Statements ...... 21 - 63

REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Funding Progress and Employer Contributions Other Post-Employment Benefit Plan ...... 64 Schedule of Employer Contributions Illinois Municipal Retirement Fund ...... 65 Public Safety Officers’ Pension Fund ...... 66 Schedule of Changes in the Employer’s Net Pension Liability Illinois Municipal Retirement Fund ...... 67 Public Safety Officers’ Pension Fund ...... 68 - 69

VILLAGE OF ROSEMONT, ILLINOIS

TABLE OF CONTENTS

PAGE

FINANCIAL SECTION – Continued

REQUIRED SUPPLEMENTARY INFORMATION – Continued

Schedule of Investment Returns Public Safety Officers’ Pension Fund ...... 70 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual General Fund ...... 71

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

Schedule of Revenues – Budget and Actual – General Fund ...... 72 - 73 Schedule of Expenditures – Budget and Actual – General Fund...... 74 - 78 Combining Balance Sheet – Nonmajor Governmental Funds ...... 79 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds ...... 80 Combining Balance Sheet – Nonmajor Governmental – Special Revenue Funds ...... 81 - 82 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental – Special Revenue Funds ...... 83 - 84 Combining Balance Sheet – Nonmajor Governmental – Debt Service Funds ...... 85 - 86 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental – Debt Service Funds ...... 87 - 88 Combining Balance Sheet – Nonmajor Governmental – Capital Projects Funds ...... 89 - 90 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental – Capital Projects Funds ...... 91 - 92 Combining Statement of Net Position – Nonmajor Enterprise Funds ...... 93 Combining Statement of Revenues, Expenses and Changes in Net Position Nonmajor Enterprise Funds ...... 94 Combining Statement of Cash Flows – Nonmajor Enterprise Funds ...... 95

SUPPLEMENTAL SCHEDULES

Long-Term Debt Requirements General Obligation Bonds of 2007B...... 96 General Obligation Refunding Bonds of 2010A ...... 97 General Obligation Refunding Bonds of 2010B ...... 98 General Obligation Refunding Bonds of 2010C ...... 99 General Obligation Bonds of 2011A ...... 100 General Obligation Bonds of 2011B...... 101 General Obligation Refunding Bonds of 2011C ...... 102

VILLAGE OF ROSEMONT, ILLINOIS

TABLE OF CONTENTS

PAGE

FINANCIAL SECTION – Continued

SUPPLEMENTAL SCHEDULES – Continued

Long-Term Debt Requirements – Continued General Obligation Bonds of 2011D ...... 103 General Obligation Bonds of 2012A ...... 104 General Obligation Bonds of 2012B...... 105 General Obligation Refunding Bonds of 2013B ...... 106 General Obligation Taxable Refunding Bonds of 2014A ...... 107 General Obligation Taxable Bonds of 2015A ...... 108

STATISTICAL SECTION (Unaudited)

Net Position by Component – Last Ten Fiscal Years ...... 109 - 110 Changes in Net Position – Last Ten Fiscal Years ...... 111 - 112 Fund Balances of Governmental Funds – Last Ten Fiscal Years ...... 113 - 114 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ...... 115 - 116 Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal Years ...... 117 - 118 TIF Frozen Values, Current Values and Incremental Values – Last Ten Fiscal Years ...... 119 - 120 Direct and Overlapping Property Tax Rates, Leyden Township – Last Ten Fiscal Years ...... 121 - 122 Direct and Overlapping Property Tax Rates, Maine Township – Last Ten Fiscal Years ...... 123 - 124 Principal Property Taxpayers – Current Tax Levy Year and Nine Tax Levy Years Ago ...... 125 Property Tax Levies and Collections – Last Ten Tax Levy Years ...... 126 - 127 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ...... 128 - 129 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years ...... 130 Schedule of Direct and Overlapping Governmental Activities Debt ...... 131 Legal Debt Margin Information ...... 132 Pledged-Revenue Coverage – Last Nine Fiscal Years ...... 133 Demographic and Economic Statistics – Last Ten Fiscal Years ...... 134 Principal Employers – Current Fiscal Year and Nine Fiscal Years Ago ...... 135 Full-Time Equivalent Village Government Employees by Function – Last Ten Fiscal Years ..... 136 - 137 Operating Indicators by Function/Program – Last Ten Fiscal Years ...... 138 - 139 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ...... 140 - 141

INTRODUCTORY SECTION

This section includes miscellaneous data regarding the Village including: the List of Elected Officials.

VILLAGE OF ROSEMONT, ILLINOIS

List of Elected Officials December 31, 2016

Bradley A. Stephens, President

BOARD OF TRUSTEES

Ralph DiMatteo, Trustee Jack Hasselberger, Trustee

John M. Dorgan, Trustee Harry Pappas, Trustee

Karen A. Fazio, Trustee Roger Minale, Trustee

ADMINISTRATION

Debbie Drehobl, Village Clerk

FINANCIAL SECTION

This section includes:

Independent Auditors’ Report

Management’s Discussion and Analysis

Basic Financial Statements

Required Supplementary Information

Combining and Individual Fund Statements and Schedules

INDEPENDENT AUDITORS’ REPORT

This section includes the opinion of the Village’s independent auditing firm.

Village of Rosemont, Illinois May 4, 2017 Page 2

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis as listed in the table of contents and budgetary information reported in the required supplementary information as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Rosemont, Illinois’ basic financial statements. The introductory section, combining and individual fund financial statements and budgetary comparison schedules, supplemental schedules, and statistical section are presented for purposes of additional analysis and are not a required part of the financial statements.

The combining and individual fund financial statements and budgetary comparison schedules and supplemental schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and budgetary comparison schedules and supplemental schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.

LAUTERBACH & AMEN, LLP

MANAGEMENT’S DISCUSSION AND ANALYSIS

VILLAGE OF ROSEMONT, ILLINOIS

Management’s Discussion and Analysis December 31, 2016

Our discussion and analysis of the Village of Rosemont’s financial performance provides an overview of the Village’s financial activities for the year ended December 31, 2016. Please read it in conjunction with the Village’s financial statements, which begin on page 3.

FINANCIAL HIGHLIGHTS

On January 20, 2016, the Village of Rosemont celebrated its 60th anniversary! The State of Illinois has honored the Village by declaring June 19th Village of Rosemont Day in the State of Illinois. Celebrations included the unveiling of the statue of Rosemont’s founder and first mayor, Donald E. Stephens, looking out over iconic Rosemont venues such as the Donald E. Stephens Convention Center, Allstate Arena, waterfall and more.

In 2015, the Village purchased a seven-story, 137,942 square-foot office building located on River Road. The Village anticipates selling this building in 2017.

Bub City and Joe’s Live opened in February of 2016 in the MB Financial Park at Rosemont, replacing Toby Keith’s I Love this Bar and Grill. Joe’s Live, a live music venue, has had a successful year of sold out shows featuring names such as Frankie Ballard and Montgomery Gentry. Bub City features Southern authentic barbecue with signature items such as an 18-hour beef brisket and Carolina style pulled pork.

Hotel Mannheim Chicago, LLC has begun its renovation of the 466-room Wyndham Hotel, which closed in 2012, into two separate hotels. The first hotel, a 200-room Hyatt Place, opened in the summer of 2016. Renovation of the second hotel, a 200 plus room La Quinta Suites, is scheduled to begin in the next 12 months. There are also plans for up to four restaurants to service both hotels. This project is within the Village’s TIF 7.

The Village of Rosemont designated the area south of Balmoral Avenue between the existing railroad right of way and I-294 “The Pearl District,” which consists of approximately 16 acres south of Balmoral Avenue. The Pearl District is a mixed-use development that will feature a Hilton-brand hotel, Carmine’s Italian eatery operated by Rosebud Restaurants, Truluck’s Seafood, Steak and Crab House, entertainment venue Dave & Buster’s, a multi-level parking structure and a 24,000 square foot office building. Construction in the Pearl District is underway and is expected to be completed in the Spring/Summer of 2018.

Additionally, approximately 10 acres north of Balmoral Avenue is being redeveloped with a 6,500 seat minor league baseball stadium and corresponding parking structure. The facility will be home to a team that will play in the American Association of Independent Baseball. Their first season of play will begin in May of 2018. This project and the Pearl District are located in the Village’s TIF 8.

In 2017, the Village acquired the Chicago Bandits women’s professional fastpitch softball team franchise from the National Pro Fastpitch League. The Bandits season opens on June 1st with a home game against the Akron Racers at The Ballpark at Rosemont.

MD&A 1 VILLAGE OF ROSEMONT, ILLINOIS

Management’s Discussion and Analysis December 31, 2016

FINANCIAL HIGHLIGHTS – Continued

The Village issued $80.375 million General Obligation Corporate Purpose Bonds, Series 2016A and $19.625 million General Obligation Corporate Purpose Bonds, Taxable Series 2016B to finance the construction of various commercial developments in the Pearl District including two parking structures and a minor league baseball stadium along with various capital improvement projects in and for the Village.

Construction of Rosemont’s Dunne Park Recreation Center was completed in 2016. The new center includes a full gym with games and an electronic scoreboard, an activity room with a fireplace and a renovated party room suitable for gatherings of all types including catered events, civic and club meetings

USING THIS ANNUAL REPORT

This annual report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities (on pages 3-6) provide information about the activities of the Village of Rosemont as a whole and present a longer-term view of the Village’s finances. Fund financial statements begin on page 7. For governmental activities, these statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the Village’s operation in more detail than the government-wide statements by providing information about the Village’s most significant funds. The remaining statements provide financial information about activities for which the Village acts solely as a trustee or agent for the benefit of those outside of the government.

Government-Wide Financial Statements

The government-wide financial statements provide readers with a broad overview of the Village’s finances, in a matter similar to a private-sector business.

The Statement of Net Position reports information on all of the Village’s assets/deferred outflows and liabilities/deferred inflows, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Village is improving or deteriorating. Consideration of other nonfinancial factors, such as changes in the Village’s property tax base and the condition of the Village’s roads, etc. is needed to assess the overall health of the Village.

The Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position 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 (e.g., uncollected taxes and earned but unused sick leave).

MD&A 2 VILLAGE OF ROSEMONT, ILLINOIS

Management’s Discussion and Analysis December 31, 2016

USING THIS ANNUAL REPORT – Continued

Government-Wide Financial Statements – Continued

Both of the government-wide financial statements distinguish functions of the Village that are principally supported by taxes and intergovernmental revenues (governmental activities) or from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Village include executive and legislative, general government, creative and design, public works and economic development, public safety, health and license, housing and social services, business development commission, culture and recreation, building department, ballpark, and interest on long-term debt. The business-type activities of the Village include the operations of the Allstate Arena, the Donald E. Stephens Convention Center, commercial properties, the Entertainment District, the waterworks and sewerage system, the Rosemont Theatre, the Rosemont Health and Fitness facility, and the Baseball Stadium.

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 Village, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Village can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, 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 the Village’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 Village’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 the comparison between governmental funds and governmental activities.

MD&A 3 VILLAGE OF ROSEMONT, ILLINOIS

Management’s Discussion and Analysis December 31, 2016

USING THIS ANNUAL REPORT - Continued

Fund Financial Statements – Continued

Governmental Funds – Continued

The Village maintains thirty-one 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 Fund, the Special Tax Allocation District #3 Special Revenue Fund, the Special Tax Allocation District #4 Special Revenue Fund, and the Redevelopment District #6 Capital Projects Fund, all of which are considered major funds. Data from the other twenty-seven governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found on pages 7-12 of this report.

Proprietary Funds

Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Village utilizes enterprise funds to account for the operations of the Allstate Arena, the Donald E. Stephens Convention Center, commercial properties, the Entertainment District, the waterworks and sewerage system, the Rosemont Theatre, the Rosemont Health and Fitness facility, and the Baseball Stadium.

Proprietary fund financial statements provide the same type of information as the government- wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Allstate Arena Fund, the Convention Center Facility Fund, the Commercial Properties Fund and the Entertainment District Fund, all of which are considered to be major funds of the Village. The Waterworks and Sewerage Fund, Rosemont Theatre Fund, Rosemont Health and Fitness Fund and Baseball Stadium Fund are reported as non-major funds.

The basic proprietary fund financial statements can be found on pages 13-18 of this report.

Fiduciary Funds

Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the Village’s own programs. The accounting use for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 19-20 of this report.

MD&A 4 VILLAGE OF ROSEMONT, ILLINOIS

Management’s Discussion and Analysis December 31, 2016

USING THIS ANNUAL REPORT - Continued

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 21-63 of this report.

Other Information

In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Village’s Illinois Municipal Retirement Fund obligation, the Village’s public safety officers’ obligation, the Village’s other postemployment benefit obligation, as well as the budgetary comparison schedule for the General Fund. Required supplementary information can be found on pages 64-71 of this report. The combining statements referred to earlier in connection with non-major governmental funds and non-major proprietary funds are presented immediately following the required supplementary information and can be found on pages 72-95 of this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS

Net position may serve over time as a useful indicator of a government’s financial position. The following tables show that in the case of the Village, assets/deferred outflows exceeded liabilities/deferred inflows by $95,317,478.

Net Position Governmental Business-type Activities Activities Total 12/31/16 12/31/15 12/31/16 12/31/15 12/31/16 12/31/15

Current/Other Assets $ 45,413,528 55,209,985 16,872,152 19,519,786 62,285,680 74,729,771 Capital Assets 156,295,766 150,906,197 276,562,648 279,787,147 432,858,414 430,693,344 Deferred Outflows 19,799,784 24,404,388 3,669,733 2,547,090 23,469,517 26,951,478 Total Assets/ Deferred Outflows 221,509,078 230,520,570 297,104,533 301,854,023 518,613,611 532,374,593

Long-Term Debt 301,846,795 332,204,211 44,897,019 43,738,010 346,743,814 375,942,221 Other Liabilities 41,687,032 41,097,314 21,118,007 19,501,507 62,805,039 60,598,821 Deferred Inflows 10,240,043 5,533,789 3,507,237 6,281,449 13,747,280 11,815,238 Total Liabilities/ Deferred Inflows 353,773,870 378,835,314 69,522,263 69,520,966 423,296,133 448,356,280

Net Position Net Investment in Capital Assets 130,142,491 121,799,341 249,852,498 252,216,637 379,994,989 374,015,978 Restricted 2,741,718 5,039,493 - - 2,741,718 5,039,493 Unrestricted (265,149,001) (275,153,578) (22,270,228) (19,883,580) (287,419,229) (295,037,158)

Total Net Position (132,264,792) (148,314,744) 227,582,270 232,333,057 95,317,478 84,018,313

MD&A 5 VILLAGE OF ROSEMONT, ILLINOIS

Management’s Discussion and Analysis December 31, 2016

GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued

By far the largest portion of the Village’s net position reflects its investment in capital assets (for example, land, buildings and improvements, furniture, fixtures and equipment, etc.), less any related debt used to acquire those assets that is still outstanding. The Village’s net investment in capital assets is $379,994,989. The Village uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Village’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

An additional portion, or $2,741,718, of the Village’s net position represents resources that are subject to external restrictions on how they may be used. The remaining deficit in unrestricted net position represents the significant balances of TIF bonds payable, the proceeds of which were used for redevelopment purposes, rather than for the acquisition or construction of capital assets. These bonds are issued with attached tax levies and respective incremental taxes as future debt service funding sources.

Total assets/deferred outflows for the governmental activities decreased $9.0 million due primarily to a reduction in cash and deferred outflows related to pensions, which was offset by an increase in capital assets.

MD&A 6 VILLAGE OF ROSEMONT, ILLINOIS

Management’s Discussion and Analysis December 31, 2016

GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued

Changes in Net Position Governmental Business-Type Activities Activities Total 12/31/16 12/31/15 12/31/16 12/31/15 12/31/16 12/31/15

Revenues Program Revenues Charges for Services $ 6,973,948 7,531,976 55,536,944 55,670,938 62,510,892 63,202,914 Operating Grants/Contrib. 2,081,523 1,841,323 205,787 3,165,078 2,287,310 5,006,401 Capital Grants/Contrib. - - 6,571,792 7,477,074 6,571,792 7,477,074 General Revenues Property Taxes 34,794,811 41,673,188 1,519,026 1,754,743 36,313,837 43,427,931 State Sales Taxes 15,278,475 14,875,127 - - 15,278,475 14,875,127 Hotel/Motel Taxes 14,305,902 13,594,725 - - 14,305,902 13,594,725 Telecommunication and Utility Taxes 2,195,991 2,257,492 - - 2,195,991 2,257,492 Restaurant Gross Receipts Taxes 2,538,861 2,489,786 - - 2,538,861 2,489,786 Other Taxes 4,052,491 3,967,106 2,229,711 2,556,739 6,282,202 6,523,845 Investment Earnings 3,453,203 99,189 3,192 2,967 3,456,395 102,156 Miscellaneous 863,099 2,454,459 95,887 86,080 958,986 2,540,539 Total Revenues 86,538,304 90,784,371 66,162,339 70,713,619 152,700,643 161,497,990

Expenses Executive and Legislative and General Government 18,368,340 26,539,984 - - 18,368,340 26,539,984 Creative and Design 2,360,132 1,923,553 - - 2,360,132 1,923,553 Public Works and Economic Development 21,941,011 19,053,853 - - 21,941,011 19,053,853 Public Safety 21,042,885 54,957,453 - - 21,042,885 54,957,453 Health and License 282,407 250,265 - - 282,407 250,265 Housing and Social Services 2,433,327 2,634,387 - - 2,433,327 2,634,387 Business Development Commission 290,413 272,343 - - 290,413 272,343 Culture and Recreation 795,491 1,088,386 - - 795,491 1,088,386 Building Department 288,951 294,564 - - 288,951 294,564 Ballpark 1,426,548 987,604 - - 1,426,548 987,604 Interest on Long-Term Debt 14,124,990 15,721,080 - - 14,124,990 15,721,080 Allstate Arena - - 16,869,681 18,360,269 16,869,681 18,360,269 Donald E. Stephens Convention Center - - 17,549,772 17,805,228 17,549,772 17,805,228 Commercial Properties - - 3,250,139 2,602,359 3,250,139 2,602,359 Entertainment District - - 8,339,713 8,064,504 8,339,713 8,064,504 Waterworks and Sewerage - - 4,099,780 4,032,708 4,099,780 4,032,708 Rosemont Theatre - - 5,791,726 5,750,992 5,791,726 5,750,992 Rosemont Health and Fitness - - 2,146,172 2,129,080 2,146,172 2,129,080 Total Expenses 83,354,495 123,723,472 58,046,983 58,745,140 141,401,478 182,468,612

Change in Net Position Before Transfers 3,183,809 (32,939,101) 8,115,356 11,968,479 11,299,165 (20,970,622)

Transfers 12,866,143 18,082,456 (12,866,143) (18,082,456) - -

Change in Net Position 16,049,952 (14,856,645) (4,750,787) (6,113,977) 11,299,165 (20,970,622)

Net Position-Beginning (148,314,744) (133,458,099) 232,333,057 238,447,034 84,018,313 104,988,935

Net Position-Ending (132,264,792) (148,314,744) 227,582,270 232,333,057 95,317,478 84,018,313

MD&A 7 VILLAGE OF ROSEMONT, ILLINOIS

Management’s Discussion and Analysis December 31, 2016

GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued

Net position of the Village’s governmental activities increased by $16,049,952 from 2015 to 2016, decreasing the overall governmental activities deficit to $132,264,792. Net position of business- type activities decreased $4,750,787 from the prior year.

Total revenues decreased by 5.4%, or $8,797,347 due primarily to decreases in grant related activities during the year and property taxes. These decreases were offset slightly by increases in state sales taxes, hotel/motel taxes and interest earnings. Total expenses of $141,401,478 were 22.5% lower than 2015, due primarily to a $32.8 million contribution to the Public Safety Officers’ Pension Fund in the prior year.

Governmental Activities

Revenues for governmental activities were $86,538,304, while total expenses were $83,354,495. The Village has used TIF districts to redevelop eight areas of the Village. The incremental property taxes received by each district are dedicated to first paying annual debt service requirements before using any remainder for capital improvements. The Village relies heavily on the related hospitality, convention, and travel industries as the host to 17 hotels with over 5,900 rooms and approximately 90 restaurants. Significant sources of governmental revenues include property, sales, hotel/motel, amusement, and food and beverage taxes.

The following table graphically depicts the major revenue sources of the Village. It depicts very clearly that while the Village does have diverse revenue streams, the Village does rely on property taxes and sales taxes to fund governmental activities.

MD&A 8 VILLAGE OF ROSEMONT, ILLINOIS

Management’s Discussion and Analysis December 31, 2016

GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued

Governmental Activities – Continued

Major expenses for the governmental activities include payroll and related employee benefit costs and TIF redevelopment and related debt service costs.

The ‘Expenses and Program Revenues’ Table above identifies those governmental functions where program expenses greatly exceed revenues, which signifies the Village’s reliance on general revenue sources such as property taxes, sales taxes, hotel/motel taxes, etc. to fund governmental activities.

Business-Type Activities

The five major business-type activities are the 17,000-seat Allstate Arena, the 890,000-square-foot Donald E. Stephens Convention Center, the 4,200-seat Rosemont Theatre, the Village’s commercial properties, and the MB Financial Park at Rosemont located in the Entertainment District.

Revenues for the business-type activities decreased by 6.4% and expenses decreased by 1.2%. Property taxes decreased from the prior year along with decreases in grant revenues. These are helped by a slight decrease in expenses.

MD&A 9 VILLAGE OF ROSEMONT, ILLINOIS

Management’s Discussion and Analysis December 31, 2016

GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued

Business-Type Activities – Continued

The Allstate Arena was host to 150 shows with attendance of more than 1 million and ticket sales of approximately $38.7 million for 2016. The 2016 shows included the final year of the Ringling Brothers and Barnum & Bailey Circus, Disney on Ice, Chicago Wolves Hockey, DePaul University basketball, WWE, WNBA Chicago Sky, Harlem Globetrotters and the very successful concerts of Justin Bieber, MANA, Carrie Underwood, 21 Pilots, Andrea Bocelli, Demi Lovato, Keith Urban, Marc Anthony, Kanye West and many more. Operating revenues from concession sales, parking fees, advertising fees and stadium rental fees were $19.1 million in 2016, compared with $21 million in 2015, while operating expenses were $16.9 million 2016, compared with $18.4 million in 2015.

The Donald E. Stephens Convention Center has the facilities to present corporate exhibit shows and consumer product shows in its exhibit halls as well as meetings, conferences and private functions in its conference center. The exhibit space was used for 72 events with a total attendance of approximately 1.2 million. These rentals produced operating revenues of $16.7 million in 2016, compared with $19.0 million in 2015. In 2016, operating expenses were $15.8 million compared with $15.5 million in 2015.

The Rosemont Theatre hosted 90 shows with attendance of more than 274,000 in 2016, including acts such as Shen Yun, Pepe Aguilar, Ana Gabriel, Il Divo, Shawn Mendes and ZZ Top. The Theatre was also host to Ron White, George Lopez, as well as the Moscow Ballet and Mannheim Steamroller. Operating revenues were $5.9 million in 2016 compared to $4.2 million in 2015. Operating expenses were $5.8 million in 2016 compared to $5.7 million in 2015.

The MB Financial Park at Rosemont, located in the Entertainment District, has restaurants, recreational and live entertainment venues, Muvico and an Aloft Hotel. The development includes an outdoor plaza area that can serve as an ice skating rink in the winter and a live entertainment area used for concerts and other events. The tenants include Kings Bowl, Five Roses, Zanies Comedy Club, Adobe Gila’s, Park Tavern, Hofbrauhaus, Sugar Factory, the Big Ten Conference’s headquarters, a Fogo de Chao restaurant and iFly, a simulated sky diving facility. Bub City and Joe’s Live opened in February 2016, taking the place of Toby Keith’s I Love this Bar and Grill. Rental income from tenants along with advertising fees and other fees resulted in operating revenues of $5.1 million in 2016 compared to $5.9 million in 2015. Operating expenses increased to $8.2 million in 2016 compared to $8.0 million in 2015.

MD&A 10 VILLAGE OF ROSEMONT, ILLINOIS

Management’s Discussion and Analysis December 31, 2016

GOVERNMENT-WIDE FINANCIAL ANALYSIS – Continued

Business-Type Activities – Continued

The Village has become a regional leader in providing entertainment, exhibit, and meeting facilities as well as providing its residents with exceptional services. The majority of the Village’s capital assets are invested in the business-type activity facilities, which produce revenues to provide for ongoing municipal services. Approximately 43% of the Village’s combined revenues are attributable to the business-type activities.

MD&A 11 VILLAGE OF ROSEMONT, ILLINOIS

Management’s Discussion and Analysis December 31, 2016

FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS

As noted earlier, the Village uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds

The focus of the Village’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

As of December 31, 2016, the governmental funds reported combined ending fund balances of $22,583,969, which is 36.81% lower than last year’s total of $35,741,866. This decrease is mostly attributable to the results of Special Tax Allocation Redevelopment District #6 Special Revenue Fund and the Redevelopment District #8 Capital Projects Fund.

The General Fund experienced an increase of $2,420,935. Actual revenues of $49,025,035 were approximately $5.8 million higher than expected. The Village saw strong performance of all Village taxes, including sales tax, hotel/motel tax, amusement tax, etc. Revenues for taxes in the General Fund exceeded budget by $1.8 million. Interest income also exceeded budget by $3.3 million.

Advances due from the Entertainment District at December 31, 2016 are $6.6 million and remained unchanged from the December 31, 2015 balance. Beginning in 2016, the outstanding balance accrues interest at 1.5%. The Village began to acquire land in the Entertainment District for the purpose of developing an area near the Donald E. Stephens Convention Center that would provide a variety of entertainment venues for visitors to the Village. In the fall of 1999, a casino company began construction of a gaming complex within the Entertainment District. Concurrently, the Village began construction of a 3,500-space parking garage. In March of 2000, the gaming regulatory board halted the construction of the casino. The Village elected to complete the partially constructed garage, which took an additional two years. The garage was built with funds advanced to the Entertainment District from the General Fund. In addition to an existing movie theatre complex and a hotel in the Entertainment District, the Village has developed the area to include restaurants, recreational and live entertainment venues which will provide a revenue stream to repay the General Fund for the advance. Additionally, funds may be transferred in to the Entertainment District, and then to the General Fund, from available TIF #3 funds to reimburse eligible costs.

Advances due from the Redevelopment District #6 Capital Projects Fund at December 31, 2016 are $21.9 million. Starting in 2013, the General Fund advanced funds to the Redevelopment District #6 to finance eligible redevelopment costs in TIF District #6, not to exceed $23 million. These funds have been used to purchase land for the development of an office building, parking facility and hotel and to reimburse the developer of this land for certain TIF eligible costs. These advances are to be repaid from future incremental taxes and bear interest at 6%.

MD&A 12 VILLAGE OF ROSEMONT, ILLINOIS

Management’s Discussion and Analysis December 31, 2016

FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS – Continued

Governmental Funds – Continued

The special revenue funds have the following restricted fund balances relating to Incremental Tax Revenues: TIF #3 - $212,042, TIF #5 - $6,562 and TIF #6 - $31,689. These funds are available, but restricted for future redevelopment projects, to pay the principal and interest on TIF eligible bonds and to reimburse the General Fund for expenditures from that fund for eligible TIF expenditures within the TIF are from which the funds were generated or in a contiguous TIF area.

Proprietary Funds

The Village’s proprietary funds provide the same type of information found in the government- wide financial statements, but in more detail.

In general, the Village’s enterprise funds are meeting the expectations of the Village – filling a need for entertainment and meeting facilities in the northwest suburbs of Chicago and utilizing the O’Hare International Airport, the CTA train station, and both the north/south and east/west interstate expressways to bring visitors from other states and other parts of Illinois to the community.

The Entertainment District’s large unrestricted deficit of $5.9 million is the result of years of externally imposed delays and related litigation that the Village had encountered in its attempts to recover reimbursement for the parking garage from the private gaming company which had entered into a lease and development agreement with the Village. The Village has since successfully proceeded with alternative development initiatives within the Entertainment District.

GENERAL FUND BUDGETARY HIGHLIGHTS

No budget amendments were made to the General Fund budget during the year. As previously stated, the General Fund experienced an increase of $2,420,935 in fund balance for the year. Actual revenues of $49,025,035 were approximately $5.8 million higher than expected. The Village saw strong performance of all Village taxes, including sales tax, hotel/motel tax, amusement tax, etc. Revenues for taxes in the General Fund exceeded budget by $1.8 million. Investment income also exceeded budget by $3.3 million. Actual expenditures of $48.0 million were under budget by $5.8 million. Almost all departments of the General Fund were under budget for the fiscal year.

MD&A 13 VILLAGE OF ROSEMONT, ILLINOIS

Management’s Discussion and Analysis December 31, 2016

CAPITAL ASSETS AND DEBT ADMINISTRATION

Capital Assets

The Village’s investment in capital assets for its governmental and business type activities as of December 31, 2016 was $432,858,414 (net of accumulated depreciation). This investment in capital assets includes land, construction in progress, land improvements, buildings and improvements, etc.

Capital Assets - Net of Depreciation Governmental Business-type Activities Activities Total 12/31/16 12/31/15 12/31/16 12/31/15 12/31/16 12/31/15

Land $ 59,796,705 59,445,798 52,800,289 52,800,289 112,596,994 112,246,087 Museum Collection 4,430,584 4,430,584 - - 4,430,584 4,430,584 Construction in Progress 8,336,722 8,361,638 6,226,932 1,103,173 14,563,654 9,464,811 Buildings and Improvements 49,431,680 43,710,304 209,210,938 216,698,647 258,642,618 260,408,951 Furniture, Fixtures and Equipment 3,188,891 3,794,252 7,668,633 8,997,179 10,857,524 12,791,431 Motor Vehicles, Heavy Equipment - and Trucks 1,448,111 1,634,251 143,495 187,859 1,591,606 1,822,110 Infrastructure 29,663,073 29,529,370 512,361 - 30,175,434 29,529,370

Total 156,295,766 150,906,197 276,562,648 279,787,147 432,858,414 430,693,344

Major capital asset events during the fiscal year included the following:

Continued improvements at Dunne Park Improvements to Bub City location Expansion of the parking garage adjacent to Village Hall Various construction projects in TIF #8 began in 2016 and will continue into 2017 and 2018 including infrastructure work, a minor league baseball stadium, parking structures and Dave & Buster’s

Additional information on the Village’s capital assets can be found in note 3 on pages 37-38 of this report.

MD&A 14 VILLAGE OF ROSEMONT, ILLINOIS

Management’s Discussion and Analysis December 31, 2016

CAPITAL ASSETS AND DEBT ADMINISTRATION – Continued

Debt Administration

At year-end, the Village had total outstanding bonded debt of $315.1 million as compared to $344.0 million the previous year. The following is a comparative statement of outstanding debt:

Long-Term Debt Outstanding Governmental Business-type Activities Activities Total 12/31/16 12/31/15 12/31/16 12/31/15 12/31/16 12/31/15

General Obligation Bonds $ 285,990,000 313,495,000 29,115,000 30,525,000 315,105,000 344,020,000

The Village retired over $28.9 million in existing debt during the current year. Additional information on the Village’s long-term debt can be found in Note 3 on pages 39-45 of this report.

REQUESTS FOR INFORMATION

This financial report is designed to provide a general overview of the Village of Rosemont’s finances for all those with an interest in the Village’s finances. Questions concerning any of the information provided in this report or requests for additional information should be directed to:

Don Calmeyn, Finance Officer Village of Rosemont 9501 West Devon Street Rosemont, Illinois 60018

MD&A 15 BASIC FINANCIAL STATEMENTS

The basic financial statements include integrated sets of financial statements as required by the GASB. The sets of statements include:

• Government-Wide Financial Statements

• Fund Financial Statements

• Governmental Funds

• Proprietary Funds

• Fiduciary Fund

In addition, the notes to the financial statements are included to provide information that is essential to a user’s understanding of the basic financial statements. [THIS PAGE INTENTIONALLY LEFT BLANK] VILLAGE OF ROSEMONT, ILLINOIS

Statement of Net Position December 31, 2016

Primary Government Governmental Business-Type Activities Activities Totals

ASSETS

Current Assets Cash and Investments $ 20,208,476 4,410,879 24,619,355 Restricted Cash - 10,212,533 10,212,533 Receivables - Net of Allowances 12,172,979 7,543,356 19,716,335 Internal Balances 7,208,653 (7,208,653) - Due from Other Governments 5,712,016 - 5,712,016 Prepaids/Inventories 111,404 1,914,037 2,025,441 Total Current Assets 45,413,528 16,872,152 62,285,680

Noncurrent Assets Capital Assets Nondepreciable Capital Assets 72,564,011 59,027,221 131,591,232 Depreciable Capital Assets 174,503,442 402,928,455 577,431,897 Accumulated Depreciation (90,771,687) (185,393,028) (276,164,715) Total Noncurrent Assets 156,295,766 276,562,648 432,858,414

Total Assets 201,709,294 293,434,800 495,144,094

DEFERRED OUTFLOWS OF RESOURCES

Deferred Items - IMRF 2,148,148 1,645,123 3,793,271 Deferred Items - Public Safety Officers' Pension 14,225,760 - 14,225,760 Loss on Refunding 3,425,876 2,024,610 5,450,486 Total Deferred Outflows of Resources 19,799,784 3,669,733 23,469,517

Total Assets and Deferred Outflows of Resources 221,509,078 297,104,533 518,613,611

The notes to the financial statements are an integral part of this statement. 3 Primary Government Governmental Business-Type Activities Activities Totals

LIABILITIES Current Liabilities Accounts Payable $ 6,090,255 5,209,218 11,299,473 Accrued Payroll 1,001,557 - 1,001,557 Accrued Interest Payable 4,269,893 140,791 4,410,684 Advance Deposits 130,355 11,889,941 12,020,296 Unearned Revenue 2,864,335 2,361,657 5,225,992 Compensated Absences 109,741 78,560 188,301 Current Portion of Long-Term Debt 27,220,896 1,437,840 28,658,736 Total Current Liabilities 41,687,032 21,118,007 62,805,039 Noncurrent Liabilities Unearned Revenue - 8,305,710 8,305,710 Compensated Absences 438,962 314,240 753,202 Net Pension Liability - IMRF 2,606,352 1,996,035 4,602,387 Net Pension Liability - Public Safety Officers' Pension 17,782,523 - 17,782,523 Net Other Post-Employment Benefit Payable 24,328,425 6,984,114 31,312,539 General Obligation Bonds Payable - Net 256,690,533 27,296,920 283,987,453 Total Noncurrent Liabilities 301,846,795 44,897,019 346,743,814 Total Liabilities 343,533,827 66,015,026 409,548,853 DEFERRED INFLOWS OF RESOURCES Deferred Items - IMRF 471,184 360,850 832,034 Deferred Items - Public Safety Officers' Pension 2,131,857 - 2,131,857 Property Taxes 7,637,002 3,146,387 10,783,389 Total Deferred Inflows of Resources 10,240,043 3,507,237 13,747,280 Total Liabilities and Deferred Inflows of Resources 353,773,870 69,522,263 423,296,133 NET POSITION Net Investment in Capital Assets 130,142,491 249,852,498 379,994,989 Restricted Maintenance of Roadways 269,795 - 269,795 Public Safety 113,902 - 113,902 Debt Service 1,677,980 - 1,677,980 TIF Eligible Costs 255,031 - 255,031 Grant Eligible Costs 425,010 - 425,010 Unrestricted (Deficit) (265,149,001) (22,270,228) (287,419,229)

Total Net Position (132,264,792) 227,582,270 95,317,478

The notes to the financial statements are an integral part of this statement. 4 VILLAGE OF ROSEMONT, ILLINOIS

Statement of Activities For the Year Ended December 31, 2016

Program Revenues Charges Operating Capital for Grants/ Grants/ Expenses Services Contributions Contributions Governmental Activities Executive and Legislative and General Government $ 18,368,340 390,133 48,390 - Creative and Design 2,360,132 - 1,064,792 - Public Works and Economic Development 21,941,011 - 968,341 - Public Safety 21,042,885 2,269,384 - - Health and License 282,407 411,678 - - Housing and Social Services 2,433,327 2,761,424 - - Business Development Commission 290,413 141,570 - - Culture and Recreation 795,491 - - - Building Department 288,951 390,626 - - Ballpark 1,426,548 609,133 - - Interest and Fiscal Charges 14,124,990 - - - Total Governmental Activities 83,354,495 6,973,948 2,081,523 - Business-Type Activities Allstate Arena 16,869,681 19,084,569 - 891 Donald E. Stephens Convention Center 17,549,772 16,495,042 205,787 775,365 Commercial Properties 3,250,139 3,627,239 - 283,843 Entertainment District 8,339,713 5,128,113 - 2,301,433 Waterworks and Sewerage 4,099,780 3,886,038 - - Rosemont Theatre 5,791,726 5,939,725 - - Rosemont Health and Fitness 2,146,172 1,376,218 - - Baseball Stadium - - - 3,210,260 Total Business-Type Activities 58,046,983 55,536,944 205,787 6,571,792 Total Primary Government 141,401,478 62,510,892 2,287,310 6,571,792 General Revenues Taxes Property Taxes State Sales Taxes Hotel/Motel Taxes Telecommunication and Utility Taxes Restaurant Gross Receipts Taxes Other Taxes Interest Income Miscellaneous Transfers - Internal Activity

Change in Net Position Net Position - Beginning Net Position - Ending

The notes to the financial statements are an integral part of this statement. 5 Net (Expense)/Revenue Primary Government Governmental Business-Type Activities Activities Totals

(17,929,817) - (17,929,817) (1,295,340) - (1,295,340) (20,972,670) - (20,972,670) (18,773,501) - (18,773,501) 129,271 - 129,271 328,097 - 328,097 (148,843) - (148,843) (795,491) - (795,491) 101,675 - 101,675 (817,415) - (817,415) (14,124,990) - (14,124,990) (74,299,024) - (74,299,024)

- 2,215,779 2,215,779 - (73,578) (73,578) - 660,943 660,943 - (910,167) (910,167) - (213,742) (213,742) - 147,999 147,999 - (769,954) (769,954) - 3,210,260 3,210,260 - 4,267,540 4,267,540 (74,299,024) 4,267,540 (70,031,484)

34,794,811 1,519,026 36,313,837 15,278,475 - 15,278,475 14,305,902 - 14,305,902 2,195,991 - 2,195,991 2,538,861 - 2,538,861 4,052,491 2,229,711 6,282,202 3,453,203 3,192 3,456,395 863,099 95,887 958,986 12,866,143 (12,866,143) - 90,348,976 (9,018,327) 81,330,649 16,049,952 (4,750,787) 11,299,165 (148,314,744) 232,333,057 84,018,313 (132,264,792) 227,582,270 95,317,478

The notes to the financial statements are an integral part of this statement. 6 VILLAGE OF ROSEMONT, ILLINOIS

Balance Sheet - Governmental Funds December 31, 2016

General

ASSETS Cash and Investments $ 14,916,990 Receivables - Net of Allowances Taxes 905,566 Accounts 365,004 Accrued Interest 3,214,066 Due from Other Governments 3,125,227 Due from Other Funds 1,184,789 Advances to Other Funds 48,948,576 Prepaids/Inventories 111,404

Total Assets 72,771,622

LIABILITIES Accounts Payable 1,238,195 Accrued Payroll 1,001,557 Accrued Interest Payable - Advance Deposits 130,355 Unearned Revenues 306,730 Due to Other Funds 258,300 Advances from Other Funds - Total Liabilities 2,935,137

DEFERRED INFLOWS OF RESOURCES Property Taxes - Total Liabilities and Deferred Inflows of Resources 2,935,137

FUND BALANCES Nonspendable 49,059,980 Restricted - Unassigned 20,776,505 Total Fund Balances 69,836,485

Total Liabilities, Deferred Inflows of Resources and Fund Balances 72,771,622

The notes to the financial statements are an integral part of this statement. 7 Special Revenue Special Tax Special Tax Capital Allocation Allocation Projects Redevelopment Redevelopment Redevelopment District #3 District #4 District #6 Nonmajor Totals

212,042 140,595 43,795 4,895,054 20,208,476

- - - 7,637,002 8,542,568 - - - 51,341 416,345 - - - - 3,214,066 - - - 694,801 3,820,028 - - - 350,327 1,535,116 - - - - 48,948,576 - - - - 111,404

212,042 140,595 43,795 13,628,525 86,796,579

- - 470,414 4,381,646 6,090,255 - - - - 1,001,557 - - 3,036,996 177,071 3,214,067 - - - - 130,355 - - - 2,557,605 2,864,335 - - - 628,773 887,073 - 6,000,000 21,868,665 14,519,301 42,387,966 - 6,000,000 25,376,075 22,264,396 56,575,608

- - - 7,637,002 7,637,002

- 6,000,000 25,376,075 29,901,398 64,212,610

- - - - 49,059,980 212,042 - - 2,529,676 2,741,718 - (5,859,405) (25,332,280) (18,802,549) (29,217,729) 212,042 (5,859,405) (25,332,280) (16,272,873) 22,583,969

212,042 140,595 43,795 13,628,525 86,796,579

The notes to the financial statements are an integral part of this statement. 8 [THIS PAGE INTENTIONALLY LEFT BLANK] VILLAGE OF ROSEMONT, ILLINOIS

Reconciliation of Total Governmental Fund Balance to Net Position of Governmental Activities

December 31, 2016

Total Governmental Fund Balances $ 22,583,969

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

Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds. 156,295,766

Other assets are not available to pay for current period expenses and therefore are not reported in the funds. 1,891,988

Deferred outflows of resources related to the pensions not reported in the funds. Deferred Items - IMRF 1,676,964 Deferred Items - Public Safety Officers' Pension 12,093,903

Unamortized losses are not considered to represent a financial resource and therefore, are not reported in the funds. 3,425,876

Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Accrued Interest Payable (1,055,826) Compensated Absences Payable (548,703) Net Pension Liability - IMRF (2,606,352) Net Pension Liability - Public Safety Officers' Pension (17,782,523) Net Other Post-Employment Benefit Obligation Payable (24,328,425) General Obligation Bonds Payable - Net (283,911,429)

Net Position of Governmental Activities (132,264,792)

The notes to the financial statements are an integral part of this statement. 9 VILLAGE OF ROSEMONT, ILLINOIS

Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Year Ended December 31, 2016

General

Revenues Taxes $ 38,250,062 Licenses and Fees 802,304 Intergovernmental Grants 11,644 Other Intergovernmental 36,746 Charges for Services 1,496,597 Fines and Forfeitures 1,311,140 Interest 3,397,764 Rent 2,761,424 Miscellaneous 957,354 Total Revenues 49,025,035

Expenditures Current Executive and Legislative 779,805 General Government 10,006,966 Creative and Design 514,690 Public Works and Economic Development 5,080,643 Public Safety 17,028,913 Health and License 282,407 Housing and Social Services 2,094,591 Business Development Commission 290,413 Culture and Recreation 485,385 Building Department 283,178 Ballpark 1,017,049 Capital Outlay 5,627,832 Debt Service Principal Retirement 4,500,000 Interest and Fiscal Charges 43,845 Total Expenditures 48,035,717

Excess (Deficiency) of Revenues Over Expenditures 989,318

Other Financing Sources (Uses) Disposal of Capital Assets 3,995 Transfers In 12,466,962 Transfers Out (11,039,340) Total Other Financing Sources (Uses) 1,431,617

Net Change in Fund Balances 2,420,935

Fund Balances - Beginning 67,415,550

Fund Balances - Ending 69,836,485

The notes to the financial statements are an integral part of this statement. 10 Special Revenue Special Tax Special Tax Capital Allocation Allocation Projects Redevelopment Redevelopment Redevelopment District #3 District #4 District #6 Nonmajor Totals

14,315,555 9,172,004 - 11,307,252 73,044,873 - - - 460,913 1,263,217

- - - 1,926,148 1,937,792 - - - 106,985 143,731 - - - - 1,496,597 - - - - 1,311,140 20,918 7,434 - 27,087 3,453,203 - - - - 2,761,424 - - - 47,315 1,004,669 14,336,473 9,179,438 - 13,875,700 86,416,646

- - - - 779,805 - - - - 10,006,966 - - - 1,845,442 2,360,132 - - 3,619,092 4,206,700 12,906,435 - - - 1,383,594 18,412,507 - - - - 282,407 - - - - 2,094,591 - - - - 290,413 - - - - 485,385 - - - - 283,178 - - - - 1,017,049 - - 2,566,003 9,909,126 18,102,961

- - - 27,505,000 32,005,000 - - - 13,374,007 13,417,852 - - 6,185,095 58,223,869 112,444,681

14,336,473 9,179,438 (6,185,095) (44,348,169) (26,028,035)

- - - - 3,995 3,760,000 5,450,000 1,530,000 38,404,185 61,611,147 (18,619,120) (15,375,038) - (3,711,506) (48,745,004) (14,859,120) (9,925,038) 1,530,000 34,692,679 12,870,138

(522,647) (745,600) (4,655,095) (9,655,490) (13,157,897)

734,689 (5,113,805) (20,677,185) (6,617,383) 35,741,866

212,042 (5,859,405) (25,332,280) (16,272,873) 22,583,969

The notes to the financial statements are an integral part of this statement. 11 VILLAGE OF ROSEMONT, ILLINOIS

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities

For the Year Ended December 31, 2016

Net Change in Fund Balances - Total Governmental Funds $ (13,157,897)

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

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital Outlays 10,646,405 Depreciation Expense (5,256,836) Disposals - Cost (133,559) Disposals - Accumulated Depreciation 133,559

Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the governmental funds. 121,658

The net effect of deferred outflows (inflows) of resources related to the pensions not reported in the funds. Change in Deferred Items - IMRF (2,818,532) Change in Deferred Items - Public Safety Officers' Pension (3,510,878)

The increase of long-term liabilities provides current financial resources to governmental funds, while the reduction of long-term liabilities consumes the current financial resources of the governmental funds. Additions to Compensated Absences Payable (41,750) Deductions to Net Pension Liability - IMRF 2,194,044 Deductions to Net Pension Liability - Public Safety Officers' Pension 1,407,873 Additions to Net Other Post-Employment Benefit Obligation Payable (4,831,997) Retirement of Debt - Net 31,850,896 Amortization of Loss on Refunding (632,522)

Changes to accrued interest on long-term debt in the Statement of Activities does not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. 79,488

Changes in Net Position of Governmental Activities 16,049,952

The notes to the financial statements are an integral part of this statement. 12 [THIS PAGE INTENTIONALLY LEFT BLANK] VILLAGE OF ROSEMONT, ILLINOIS

Statement of Net Position - Proprietary Funds December 31, 2016

Allstate Arena

ASSETS Current Assets Cash and Investments $ 2,562,791 Restricted Cash 8,467,418 Receivables - Net of Allowances Property Taxes - Accounts 1,475,250 Prepaids/Inventories 159,375 Total Current Assets 12,664,834 Noncurrent Assets Capital Assets Nondepreciable Capital Assets 8,551,815 Depreciable Capital Assets 67,029,246 Accumulated Depreciation (43,609,677) Total Noncurrent Assets 31,971,384 Total Assets 44,636,218 DEFERRED OUTFLOWS OF RESOURCES Loss on Refunding - Deferred Items - IMRF 426,675 Total Deferred Outflows of Resources 426,675 Total Assets and Deferred Outflows of Resources 45,062,893

LIABILITIES Current Liabilities Accounts Payable 2,669,253 Accrued Interest Payable - Advance Deposits 8,511,101 Due to Other Funds 514,171 Unearned Revenue 1,304,693 Compensated Absences 24,406 Current Portion of Long-Term Debt - Total Current Liabilities 13,023,624 Noncurrent Liabilities Advances from Other Funds - Unearned Revenue 368,750 Compensated Absences 97,624 Net Pension Liability - IMRF 517,687 Net Other Post-Employment Benefit Payable 2,382,541 General Obligation Bonds Payable - Net - Total Noncurrent Liabilities 3,366,602 Total Liabilities 16,390,226 DEFERRED INFLOWS OF RESOURCES Property Taxes - Deferred Items - IMRF 93,589 Total Deferred Inflows of Resources 93,589 Total Liabilities and Deferred Inflows of Resources 16,483,815 NET POSITION Net Investment in Capital Assets 31,971,384 Unrestricted (Deficit) (3,392,306)

Total Net Position 28,579,078 The notes to the financial statements are an integral part of this statement. 13 Convention Center Commercial Entertainment Facility Properties District Nonmajor Totals

720,059 103,960 339,615 684,454 4,410,879 - - - 1,745,115 10,212,533

3,146,387 - - - 3,146,387 2,208,382 4,476 4,038 704,823 4,396,969 553,770 13,307 1,177,985 9,600 1,914,037 6,628,598 121,743 1,521,638 3,143,992 24,080,805

14,511,668 3,905,448 17,229,528 14,828,762 59,027,221 147,223,991 23,377,853 106,698,392 58,598,973 402,928,455 (75,924,160) (10,999,222) (22,820,246) (32,039,723) (185,393,028) 85,811,499 16,284,079 101,107,674 41,388,012 276,562,648 92,440,097 16,405,822 102,629,312 44,532,004 300,643,453

2,024,610 - - - 2,024,610 536,788 136,035 162,761 382,864 1,645,123 2,561,398 136,035 162,761 382,864 3,669,733 95,001,495 16,541,857 102,792,073 44,914,868 304,313,186

1,196,349 307,536 337,818 698,262 5,209,218 140,791 - - - 140,791 940,125 67,006 200,131 2,171,578 11,889,941 23,564 - 3,110 107,198 648,043 156,250 706,250 12,500 181,964 2,361,657 20,829 7,498 9,790 16,037 78,560 1,437,840 - - - 1,437,840 3,915,748 1,088,290 563,349 3,175,039 21,766,050

- - 6,560,610 - 6,560,610 1,875,000 6,061,960 - - 8,305,710 83,316 29,991 39,160 64,149 314,240 651,287 165,052 197,479 464,530 1,996,035 1,363,694 677,343 190,957 2,369,579 6,984,114 27,296,920 - - - 27,296,920 31,270,217 6,934,346 6,988,206 2,898,258 51,457,629 35,185,965 8,022,636 7,551,555 6,073,297 73,223,679

3,146,387 - - - 3,146,387 117,742 29,839 35,701 83,979 360,850 3,264,129 29,839 35,701 83,979 3,507,237 38,450,094 8,052,475 7,587,256 6,157,276 76,730,916

59,101,349 16,284,079 101,107,674 41,388,012 249,852,498 (2,549,948) (7,794,697) (5,902,857) (2,630,420) (22,270,228)

56,551,401 8,489,382 95,204,817 38,757,592 227,582,270 The notes to the financial statements are an integral part of this statement. 14 VILLAGE OF ROSEMONT, ILLINOIS

Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds For the Year Ended December 31, 2016

Allstate Arena

Operating Revenues Charges for Services $ 19,084,569 Operating Grants - Miscellaneous - Total Operating Revenues 19,084,569

Operating Expenses Costs of Goods Sold - Operating Personnel, Payroll Taxes and Benefits 4,148,410 Other Direct Expenses 10,497,283 General and Administrative 68,166 Depreciation and Amortization 2,155,822 Total Operating Expenses 16,869,681

Operating Income (Loss) 2,214,888

Nonoperating Revenues (Expenses) Interest Income 3,192 Interest Expense - Property and Other Taxes - Total Nonoperating Revenues (Expenses) 3,192

Income (Loss) Before Transfers and Capital Contributions 2,218,080

Transfers In - Transfers Out (3,797,347) Capital Contributions 891 (3,796,456)

Change in Net Position (1,578,376)

Net Position - Beginning 30,157,454

Net Position - Ending 28,579,078

The notes to the financial statements are an integral part of this statement. 15 Convention Center Commercial Entertainment Facility Properties District Nonmajor Totals

16,495,042 3,627,239 5,128,113 11,201,981 55,536,944 205,787 - - - 205,787 - 48,930 - 46,957 95,887 16,700,829 3,676,169 5,128,113 11,248,938 55,838,618

- - - 2,697,116 2,697,116 3,640,064 936,230 1,577,856 3,256,956 13,559,516 7,077,264 1,120,327 1,735,656 3,940,736 24,371,266 305,885 285,513 545,311 595,854 1,800,729 4,786,792 908,069 4,382,478 1,547,016 13,780,177 15,810,005 3,250,139 8,241,301 12,037,678 56,208,804

890,824 426,030 (3,113,188) (788,740) (370,186)

- - - - 3,192 (1,739,767) - (98,412) - (1,838,179) 3,748,737 - - - 3,748,737 2,008,970 - (98,412) - 1,913,750

2,899,794 426,030 (3,211,600) (788,740) 1,543,564

- - - 203,550 203,550 (5,505,183) (945,837) (1,451,332) (1,369,994) (13,069,693) 775,365 283,843 2,301,433 3,210,260 6,571,792 (4,729,818) (661,994) 850,101 2,043,816 (6,294,351)

(1,830,024) (235,964) (2,361,499) 1,255,076 (4,750,787)

58,381,425 8,725,346 97,566,316 37,502,516 232,333,057

56,551,401 8,489,382 95,204,817 38,757,592 227,582,270

The notes to the financial statements are an integral part of this statement. 16 VILLAGE OF ROSEMONT, ILLINOIS

Statement of Cash Flows - Proprietary Funds For the Year Ended December 31, 2016

Convention Allstate Center Arena Facility

Cash Flows from Operating Activities Receipts from Customers and Users $ 20,055,302 16,494,237 Receipts from Interfund Services - - Payments to Employees (3,212,530) (2,786,397) Payments to Suppliers (11,285,877) (7,016,051) Payments for Interfund Services (117,770) (199,593) 5,439,125 6,492,196 Cash Flows from Noncapital Financing Activities Transfers In - - Transfers Out (3,797,347) (5,505,183) Property and Other Taxes - 3,748,737 Interfund Loans and Repayments, Net 345,497 (7,676) (3,451,850) (1,764,122) Cash Flows from Capital and Related Financing Activities Purchase of Capital Assets (808,954) (2,108,038) Debt Repayment - (1,410,000) Interest Payments - (1,744,335) (808,954) (5,262,373) Cash Flows from Investing Activities Interest Received 3,192 - Net Change in Cash 1,181,513 (534,299) Cash - Beginning 1,381,278 1,254,358 Cash - Ending 2,562,791 720,059 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) 2,214,888 890,824 Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by (Used in) Operating Activities: Depreciation and Amortization Expense 2,155,822 4,786,792 Changes in Assets and Liabilities Accounts Receivable 908,143 286,484 Restricted Cash 215,393 - Prepaids/Inventories - (57,419) Unearned Revenue (152,803) (362,037) Accounts Payable (653,597) 457,165 Compensated Absences 6,382 17,881 Advance Deposits - (131,039) Deferred Items - IMRF (333,086) (419,046) Net Pension Liability - IMRF 517,687 651,287 Net Other Post-Employment Benefit Payable 560,296 371,304

Net Cash Provided by Operating Activities 5,439,125 6,492,196 Noncash Activity Capital Contributions 891 775,365

The notes to the financial statement are an integral part of this statement. 17 Commercial Entertainment Properties District Nonmajor Totals

2,231,483 5,202,281 10,933,578 54,916,881 825,826 - 337,774 1,163,600 (612,496) (1,329,319) (2,404,038) (10,344,780) (1,447,663) (2,338,642) (7,651,280) (29,739,513) (13,589) (5,591) (42,532) (379,075) 983,561 1,528,729 1,173,502 15,617,113

- - 203,550 203,550 (945,837) (1,451,332) (1,369,994) (13,069,693) - - - 3,748,737 - (2,196) 207,066 542,691 (945,837) (1,453,528) (959,378) (8,574,715)

- - (73,924) (2,990,916) - - - (1,410,000) - (98,412) - (1,842,747) - (98,412) (73,924) (6,243,663)

- - - 3,192 37,724 (23,211) 140,200 801,927 66,236 362,826 544,254 3,608,952 103,960 339,615 684,454 4,410,879

426,030 (3,113,188) (788,740) (370,186)

908,069 4,382,478 1,547,016 13,780,177

68,391 61,885 88,146 1,413,049 - - 4,390 219,783 - - (3,857) (61,276) (706,249) 12,500 (68,720) (1,277,309) 3,443 7,153 (335,798) (521,634) 7,836 18,303 6,742 57,144 18,998 (217) (1,402) (113,660) (106,196) (127,060) (298,885) (1,284,273) 165,052 197,479 464,530 1,996,035 198,187 89,396 560,080 1,779,263

983,561 1,528,729 1,173,502 15,617,113

283,843 2,301,433 3,210,260 6,571,792

The notes to the financial statement are an integral part of this statement. 18 VILLAGE OF ROSEMONT, ILLINOIS

Statement of Fiduciary Net Position December 31, 2016

Pension Trust Public Safety Officers'

ASSETS

Cash and Cash Equivalents Public Safety Officers' Pension Fund $ 2,587,135 Restricted Retirement Trust 38,896

Investments U.S. Agency Securities GNMA Mortgage Pools Public Safety Officers' Pension Fund 494,620 FNMA Mortgage Pools Public Safety Officers' Pension Fund 719,976 Corporate Bonds Public Safety Officers' Pension Fund 1,161,851 Mutual Funds Public Safety Officers' Pension Fund 7,372,648 Restricted Retirement Trust 81,738,066

Receivables Accrued Interest 49,152

NET POSITION

Net Position Restricted for Pensions 94,162,344

The notes to the financial statement are an integral part of this statement. 19 VILLAGE OF ROSEMONT, ILLINOIS

Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2016

Pension Trust Public Safety Officers'

Additions Contributions - Employer $ 2,500,000 Contributions - Plan Members 710,040 Total Contributions 3,210,040

Investment Income Interest Earned Public Safety Officers' Pension Fund 321,184 Restricted Retirement Trust 1,969,898 Net Change in Fair Value Public Safety Officers' Pension Fund 491,428 Restricted Retirement Trust 4,892,205 7,674,715 Less Investment Expenses (40,426) Net Investment Income 7,634,289

Total Additions 10,844,329

Deductions Administration 9,646 Benefits and Refunds 5,055,137 Total Deductions 5,064,783

Change in Fiduciary Net Position 5,779,546

Net Position Restricted for Pensions Beginning 88,382,798

Ending 94,162,344

The notes to the financial statement are an integral part of this statement. 20 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The Village of Rosemont, Illinois (the Village), an Illinois home rule municipally incorporated in 1956, provides a broad range of municipal services, including general government, public works and economic development, public safety, and health and social services. The Village also owns and operates the Donald E. Stephens Convention Center (a conference and exhibition facility), the Allstate Arena (an approximately 17,000-seat indoor stadium), the Rosemont Theatre (a 4,200-seat theater), the Rosemont Health and Fitness Center (formerly known as Willow Creek Club), a waterworks and sewerage utility, certain commercial buildings in the Village, and the Entertainment District (a variety of entertainment facilities). The Village is governed by the President and members of the Board of Trustees (the Board).

The government-wide financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The more significant of the Village’s accounting policies established in GAAP and used by the Village are described below.

REPORTING ENTITY

The Village’s financial reporting entity comprises the following:

Primary Government: Village of Rosemont

In determining the financial reporting entity, the Village complies with the provisions of GASB Statement No. 61, “The Financial Reporting Omnibus – an Amendment of GASB Statements No. 14 and No. 34,” and includes all component units that have a significant operational or financial relationship with the Village. Based upon the criteria set forth in the GASB Statement No. 61, there are no component units included in the reporting entity.

Public Safety Officers’ Pension Fund

The Village’s Public Safety Officers’ Pension Fund (the PSOPF) is a single employer plan administered by the Village, covering all full-time members of the Village’s Public Safety Department who choose to participate. The PSOPF is included in these financial statements as pension trust fund.

21 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

BASIS OF PRESENTATION

Government-Wide Statements

The Village’s basic financial statements include both government-wide (reporting the Village as a whole) and fund financial statements (reporting the Village’s major funds). Both the government-wide and fund financial statements categorize primary activities as either governmental or business-type. The Village’s executive and legislative, general government, creative and design, public works and economic development, public safety, health and license, housing and social services, business development commission, culture and recreation, building department, and ballpark services are classified as governmental activities. The Village’s Allstate Arena, Donald E. Stephens Convention Center Facility, commercial property, Rosemont Theatre, entertainment district, waterworks and sewerage, Rosemont Health and Fitness, and baseball stadium are classified as business-type activities.

In the government-wide Statement of Net Position, both the governmental and business-type activities columns are: (a) presented on a consolidated basis by column, and (b) reported on a full accrual, economic resource basis, which recognizes all long-term assets/deferred outflows and receivables as well as long-term debt/deferred inflows and obligations.

The Village’s net position is reported in three parts: net investment in capital assets; restricted; and unrestricted. The Village first utilizes restricted resources to finance qualifying activities.

The government-wide Statement of Activities reports both the gross and net cost of each of the Village’s functions and business-type activities (general government, public safety, public works, etc.). The functions are supported by general government revenues (property, sales and use taxes, certain intergovernmental revenues, fines, permits and charges for services, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, which include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment.

The net costs (by function or business-type activity) are normally covered by general revenue (property, sales and use taxes, certain intergovernmental revenues, permits and charges for services, etc.).

This government-wide focus is more on the sustainability of the Village as an entity and the change in the Village’s net position resulting from the current year’s activities.

22 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

BASIS OF PRESENTATION – Continued

Fund Financial Statements

The financial transactions of the Village are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self-balancing accounts that comprise its assets/deferred outflows, liabilities/deferred inflows, fund equity, revenues and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary.

The emphasis in fund financial statements is on the major funds in either the governmental or business- type activities categories. GASB Statement No. 34 sets forth minimum criteria (percentage of the assets/deferred outflows, liabilities/deferred inflows, revenues or expenditures/expenses of either fund category or the governmental and enterprise combined) for the determination of major funds. The nonmajor funds are combined in a column in the fund financial statements. A fund is considered major if it is the primary operating fund of the Village or meets the following criteria:

Total assets/deferred outflows, liabilities/deferred inflows, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type; and

Total assets/deferred outflows, liabilities/deferred inflows, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined.

The various funds are reported by generic classification within the financial statements. The following fund types are used by the Village:

Governmental Funds

The focus of the governmental funds’ measurement (in the fund statements) is upon determination of financial position and changes in financial position (sources, uses, and balances of financial resources) rather than upon net income. The following is a description of the governmental funds of the Village:

General fund is the general operating fund of the Village. It is used to account for all financial resources except those required to be accounted for in another fund. The General Fund is a major fund.

23 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

BASIS OF PRESENTATION – Continued

Fund Financial Statements – Continued

Governmental Funds – Continued

Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. The Village maintains eight special revenue funds. The Special Tax Allocation Redevelopment District #3 Fund, a major fund, is used to account for specific incremental tax revenue that is legally restricted to expenditures within Tax Increment Financing Redevelopment District #3. The Special Tax Allocation Redevelopment District #4 Fund, also a major fund, is used to account for specific incremental tax revenue that is legally restricted to expenditures within Tax Increment Financing Redevelopment District #4.

Debt service funds are used to account for the accumulation of funds for the periodic payment of principal and interest on general long-term debt. The Village maintains thirteen debt service funds.

Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by business-type/proprietary funds). The Village maintains nine capital projects funds. The Redevelopment District #6 Fund, a major fund, is used to account for financial resources to be used for the acquisition or construction of major capital facilities and redevelopment within Tax Increment Financing Redevelopment District #6.

Proprietary Funds

The focus of proprietary fund measurement is upon determination of operating income, changes in net position, financial position, and cash flows. The generally accepted accounting principles applicable are those similar to businesses in the private sector. The following is a description of the proprietary funds of the Village:

Enterprise funds are required to account for operations for which a fee is charged to external users for goods or services and the activity is (a) financed with debt that is solely secured by a pledge of the net revenues, (b) has third party requirements that the cost of providing services, including capital costs, be recovered with fees and charges, or (c) establishes fees and charges based on a pricing policy designed to recover similar costs. The Village maintains eight enterprise funds. The Allstate Arena Fund, a major fund, is used to account for the financial activities associated with holding entertainment and sports events in the Allstate Arena. The Convention Center Facility Fund, also a major fund, is used to account for the financial activities associated with holding events in the Donald E. Stephens Convention Center. The Commercial Properties Fund, also a major fund, is used to account for the financial activities associated with owning and renting real estate to third-party users within the Village. The Entertainment District Fund, also a major fund, is used to account for the financial activities associated with the development and operations of an entertainment district within the Village.

24 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

BASIS OF PRESENTATION – Continued

Fund Financial Statements – Continued

Fiduciary Funds

Fiduciary funds are used to report assets held in a trustee or agency capacity by the Village for others and therefore are not available to support Village programs. The reporting focus is on net position and changes in net position and is reported using accounting principles similar to proprietary funds.

Pension trust funds are used to account for assets held in a trustee capacity by the Village for pension benefit payments. The Public Safety Officers’ Pension Fund is used to account for the accumulation of resources and the payment of pensions to officers of the Village’s public safety department.

The Village’s pension trust fund is presented in the fiduciary fund financial statements. Since by definition these assets are being held for the benefit of a third party (pension participants) and cannot be used to address activities or obligations of the Village, this fund is not incorporated into the government-wide statements.

MEASUREMENT FOCUS AND BASIS OF ACCOUNTING

Measurement focus is a term used to describe “which” transactions are recorded within the various financial statements. Basis of accounting refers to “when” transactions are recorded regardless of the measurement focus applied.

Measurement Focus

On the government-wide Statement of Net Position and the Statement of Activities, both governmental and business-type activities are presented using the economic resources measurement focus as defined below.

In the fund financial statements, the “current financial resources” measurement focus or the “economic resources” measurement focus is used as appropriate.

All governmental funds utilize a “current financial resources” measurement focus. Only current financial assets/deferred outflows and liabilities/deferred inflows are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period.

25 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

MEASUREMENT FOCUS AND BASIS OF ACCOUNTING – Continued

Measurement Focus – Continued

All proprietary and pension trust funds utilize an “economic resources” measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets/deferred outflows and liabilities/deferred inflows (whether current or noncurrent) associated with their activities are reported. Proprietary and pension trust fund equity is classified as net position.

Basis of Accounting

In the government-wide Statement of Net Position and Statement of Activities, both governmental and business-type activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability/deferred inflow is incurred or economic asset used. Revenues, expenses, gains, losses, assets/deferred outflows, and liabilities/deferred inflows resulting from exchange and exchange-like transactions are recognized when the exchange takes place.

In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when “measurable and available.” Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or within sixty days after year-end. The Village recognizes property taxes when they become both measurable and available in accordance with GASB Codification Section P70.

A sixty day availability period is used for revenue recognition for all other governmental fund revenues. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and interest which are recognized when due.

In applying the susceptible to accrual concept under the modified accrual basis, those revenues susceptible to accrual are property taxes, sales and use taxes, franchise taxes, licenses, interest revenue, and charges for services. All other revenues are not susceptible to accrual because generally they are not measurable until received in cash.

26 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

MEASUREMENT FOCUS AND BASIS OF ACCOUNTING – Continued

Basis of Accounting – Continued

All proprietary and pension trust funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Village’s enterprise funds are charges to customers for sales and services and rental income. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY

Cash and Investments

Cash and cash equivalents on the Statement of Net Position are considered to be cash on hand, demand deposits, and cash with fiscal agent. For the purpose of the proprietary funds “Statement of Cash Flows”, cash and cash equivalents are considered to be cash on hand, demand deposits, cash with fiscal agent, and all highly liquid investments with an original maturity of three months or less.

Investments are generally reported at fair value. Short-term investments are reported at cost, which approximates fair value. For investments, the Village categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.

Restricted Assets

The box office of the Allstate Arena and the Rosemont Theatre include escrow deposits held for future performances. This cash is considered restricted as it is held in escrow and is restricted for use until the future performance occurs.

27 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY – Continued

Interfund Receivables, Payables and Activity

Interfund activity is reported as loans, services provided, reimbursements or transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”

Receivables

In the government-wide financial statements, receivables consist of all revenues earned at year-end and not yet received. Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging of accounts receivable. Major receivables balances for governmental activities include property taxes, sales and use taxes, and accrued interest receivable. Business-type activities report charges for services as their major receivables.

Prepaids/Inventories

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaids in both the government-wide and fund financial statements. Prepaids/inventories are valued at cost, which approximates market, using the first-in/first-out (FIFO) method. The costs of governmental fund-type prepaids/inventories are recorded as expenditures when consumed rather than when purchased.

Capital Assets

Capital assets purchased or acquired with an original cost of $25,000 or more (depending on the type of asset) are reported at historical cost or estimated historical cost. Contributed assets are reported at fair market value as of the date received. Additions, improvements and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred.

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. General capital assets are long-lived assets of the Village as a whole. Infrastructure such as streets, traffic signals and signs are capitalized. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by the governmental activities) the government chose to include all such items regardless of their acquisition date. The valuation basis for general capital assets are historical cost, or where historical cost is not available, estimated historical cost based on replacement costs. 28 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY – Continued

Capital Assets – Continued

Capital assets in the proprietary funds are capitalized in the fund in which they are utilized. The valuation bases for proprietary fund capital assets are the same as those used for the general capital assets. Donated capital assets are capitalized at estimated fair market value on the date donated.

Depreciation on all assets is computed and recorded using the straight-line method of depreciation over the following estimated useful lives:

Land and Building Improvements 15 Years Buildings 40 Years Furniture, Fixtures and Equipment 7 Years Vehicles and Ambulances 5 - 10 Years Heavy Equipment and Trucks 10 Years Infrastructure 20 - 40 Years

Compensated Absences

The Village accrues accumulated unpaid sick and associated employee-related costs when earned (or estimated to be earned) by the employee. In accordance with GASB Statement No. 16, no liability is recorded for nonvesting accumulation rights to receive sick pay benefits. However, a liability is recognized for that portion of accumulated sick leave that is estimated to be taken as “terminal leave” prior to retirement. All sick pay is accrued when incurred in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements. The Village’s policy does not allow for vacation carryover.

Deferred Outflows/Inflows of Resources

Deferred outflow/inflow of resources represents an acquisition of net position that applies to a future period and therefore will not be recognized as an outflow of resources (expense)/inflow of resources (revenue) until that future time.

Use of Estimates

The preparation of the financial statements in conformity with U.S. 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 expenses/expenditures during the reporting period. Actual results could differ from those estimates.

29 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued

ASSETS/DEFERRED OUTFLOWS, LIABILITIES/DEFERRED INFLOWS, AND NET POSITION OR EQUITY – Continued

Unearned Revenue

The unearned revenue represents funds received during the current or previous years that has not been earned by, or is not available to, the Village as of the end of the year. These funds will be recognized as revenues in subsequent years, once the revenue has been earned or becomes available.

Long-Term Obligations

In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position. Bond premiums and discounts, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as expenses at the time of issuance.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. 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.

Net Position

In the government-wide financial statements, equity is classified as net position and displayed in three components:

Net Investment in Capital Assets – 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.

Restricted – Consists of net position with constraints placed on the 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 legislations.

Unrestricted – All other net position balances that do not meet the definition of “restricted” or “net investment in capital assets.”

30 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

APPROPRIATIONS

Appropriations are made using the same accounting basis and principles as the Village’s fund financial statements. Appropriations are prepared by fund, function and department. The Village may incur expenditures or obligations, which are authorized by the Village Board of Trustees, without making a previous appropriation. All appropriations lapse at year-end.

Although the appropriations do not represent legally adopted budgets, the Village’s General Fund appropriation has been determined to be representative of budgetary accounting and has been included as required supplementary information. The Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund presents a comparison of budgetary data to actual results of General Fund operations.

DEFICIT FUND BALANCES

The following funds had deficit fund balance as of December 31, 2016:

Fund Deficit

Special Tax Allocation Redevelopment District #4 $ 5,859,405 Capital Projects - Redevelopment District #6 25,332,280 Special Service Area #2 501,728 Capital Projects - Redevelopment District #3 1,324,113 Capital Projects - Redevelopment District #4 4,877,514 Capital Projects - Redevelopment District #7 6,007,484 Capital Projects - Redevelopment District #8 4,229,327 Capital Projects - 2016A and B Bond Project 1,862,383

These deficits are largely due to interfund loans and advances, outstanding accounts payable and other accruals at year-end.

NOTE 3 – DETAIL NOTES ON ALL FUNDS

DEPOSITS AND INVESTMENTS

Permitted Deposits and Investments – The Village’s investment policy authorizes the Village to make deposits/invest in commercial banks, savings and loan institutions, obligations of the U.S. Treasury and U.S. Agencies, obligations of the State of Illinois, obligations of political subdivisions, certain money market mutual funds, credit union shares, and repurchase agreements, and certain commercial paper rated within the three highest classifications by at least two standard rating services.

31 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued

DEPOSITS AND INVESTMENTS – Continued

The deposits and investments of the Public Safety Officers’ Pension Fund (PSOPF) are held separately from those of other Village funds and are reported in the Pension Trust. Investments of the PSOPF are restricted by Village Ordinance to mirror the investments permitted by the Illinois Pension Code.

The deposits and investments of the Village of Rosemont Postemployment Benefit Trust are reported in the Pension Trust as Restricted Retirement Trust and their use is limited by applicable bond covenants.

Village Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk

Deposits. At year-end, the carrying amount of the Village’s deposits for governmental and business- type activities totaled $33,411,948 and the bank balances totaled $34,215,752.

Investments. The Village has the following investment fair values and maturities:

Investment Maturities (in Years) Fair Less Than More Than Investment Type Value 1 1 to 5 6 to 10 10

U.S. Treasuries $ 1,419,940 1,419,940 - - -

The Village has the following recurring fair value measurements as of December 31, 2016:

U.S. Treasuries of $1,419,940 are valued using quoted market prices (Level 1 inputs)

Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Village’s investment policy limits its exposure to interest rate risk by structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity and by investing operating funds primarily in short-term securities, money market mutual funds, or similar investment pools.

Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. To guard against credit risk for deposits with financial institutions, the Village’s investment policy requires that the collateralization of assets insured by the FDIC should be in writing; executed by the depository and any person claiming an adverse interest, contemporaneously with the acquisition of the asset by a depository; approved by the board of directors of depository; and kept continuously from the time of execution as an official record of the depository. Funds invested in institutions insured by the FDIC including certificates of deposit must be fully collateralized.

32 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued

DEPOSITS AND INVESTMENTS – Continued

Village Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk – Continued

Custodial Credit Risk. In the case of deposits, this is the risk that in the event of a bank failure, the Village’s deposits may not be returned to it. At year-end, the entire amount of the bank balance of deposits was covered by collateral, federal depository or equivalent insurance.

For investments, this is the risk that in the event of the failure of the counterparty, the Village will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party.

Concentration Risk. This is the risk of loss attributed to the magnitude of the Village’s investment in a single issuer. The Village’s investment policy limits its investment to the safest types of securities/financial instruments; pre-qualifying the financial institutions, broker/dealers, intermediaries and advisors with which the Village will do business; and diversifying the investment portfolio so that potential losses on individual securities will be minimized.

Public Safety Officers’ Pension Fund Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk

Deposits. At year-end, the carrying amount of the Fund’s deposits totaled $2,626,031 and the bank balances totaled $2,185,854.

Investments. At year-end, the Fund has the following investments and maturities:

Investment Maturities (in Years) Fair Less Than More Than Investment Type Value 1 1 to 5 6 to 10 10

U.S. Agencies $ 1,214,596 719,976 - 6,605 488,015 Corporate Bonds 1,161,851 525,557 636,294 - -

2,376,447 1,245,533 636,294 6,605 488,015

The Fund has the following recurring fair value measurements as of December 31, 2016: U.S. Agencies of $1,214,596 are valued using a matric pricing model (Level 2 inputs) Corporate Bonds of $1,161,851 are valued using a matric pricing model (Level 2 inputs)

Interest Rate Risk. The Fund’s investment policy does not address interest rate risk.

Credit Risk. The Fund’s investment policy does not address credit risk.

33 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued

DEPOSITS AND INVESTMENTS – Continued

Public Safety Officers’ Pension Fund Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk – Continued

Custodial Credit Risk. The Fund’s investment policy does not address custodial credit risk. At year-end, the entire amount of the bank balance of deposits was covered by collateral, federal depository or equivalent insurance.

For an investment, the Fund’s investment policy does not address custodial credit risk. The money market mutual funds are not subject to custodial credit risk.

Concentration Risk. The Fund’s investment policy limits investments with or in any one institution shall be limited to the sum of 10% of the Fund’s portfolio. In addition to the securities and fair values listed above, the Fund also has $89,110,714 invested in mutual funds. At year-end, the Fund has no investment greater than 5% of its overall portfolio (other than U.S. Government guaranteed obligations and mutual funds).

The Fund’s investment policy establishes the following target allocation across asset classes:

Long-Term Expected Real Asset Class Target Rate of Return

Fixed Income 30.00% 3.70% Domestic Equities 35.00% 8.20% International Equities 20.00% 8.50% Real Estate 10.00% 8.10% Global Tactical 5.00% 6.30% Cash and Cash Equivalents 0.00% 0.00%

The long-term expected rate of return on the Fund’s investments was determined using an asset allocation study conducted by the Fund’s investment management consultant in January 2017 in which best-estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) were developed for each major asset class. These ranges were combined to produce the long- term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding the expected inflation. Best estimates or arithmetic real rates of return for each major asset class included in the Fund’s target asset allocation as of December 31, 2016 are listed in the table above.

34 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued

DEPOSITS AND INVESTMENTS – Continued

Public Safety Officers’ Pension Fund Interest Rate Risk, Credit Risk, Custodial Credit Risk and Concentration Risk – Continued

Rate of Return

For the year ended December 31, 2016, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 7.63%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.

PROPERTY TAXES

Property taxes become a lien on the taxable property as of January 1 of the levy year. The taxes are due in two installments during the following year: on March 1 and the later of (1) September 1 or (2) four weeks after the tax bills are actually mailed by the Cook County Collector. Taxes are distributed to the Village within several weeks of their receipt by the Collector. Property taxes for debt service are levied when the related general obligation bonds are authorized and may be subsequently abated in whole or in part by the Village Board based upon availability of other funds.

Property taxes receivable (net of allowance for uncollectible amounts based on prior history) and unearned revenues are recorded at the time of the enforceable lien. Property tax revenues are recognized in the government-wide financial statements in the year for which the taxes are levied and intended to finance, which is the year after the taxes are levied, and in the fund financial statements if collected within 60 days after year-end.

INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS

Interfund Advances

Interfund advances at December 31, 2016 are as follows:

Receivable Fund Payable Fund Amount

General Special Tax Allocation Redevelopment District #4 $ 6,000,000 General Capital Projects - Redevelopment District #6 21,868,665 General Nonmajor Governmental 14,519,301 General Entertainment District 6,560,610

48,948,576

Interfund advances represent funding of debt service payments and capital projects on behalf of these funds. These amounts will be repaid over several years.

35 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued

INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS

Interfund Balances

Interfund balances are advances in anticipation of receipts. The composition of interfund balances at December 31, 2016, are as follows:

Receivable Fund Payable Fund Amount

General Nonmajor Governmental $ 536,746 General Allstate Arena 514,171 General Convention Center Facility 23,564 General Entertainment District 3,110 General Nonmajor Business-Type 107,198 Nonmajor Governmental General 258,300 Nonmajor Governmental Nonmajor Governmental 92,027

1,535,116

Interfund Transfers

Interfund transfers for the year consisted of the following:

Transfers In Transfers Out Amount

General Nonmajor Governmental $ 92,269 General Allstate Arena 3,647,347 General Convention Center Facility 5,110,183 General Commercial Property 945,837 General Entertainment District 1,301,332 General Nonmajor Business-Type 1,369,994 Special Tax Allocation Redevelopment District #3 General 3,760,000 Special Tax Allocation Redevelopment District #4 General 5,450,000 Capital Projects - Redevelopment District #6 Nonmajor Governmental 1,530,000 Nonmajor Governmental General 1,625,790 Nonmajor Governmental Special Tax Allocation Redevelopment District #3 18,619,120 Nonmajor Governmental Special Tax Allocation Redevelopment District #4 15,375,038 Nonmajor Governmental Nonmajor Governmental 2,089,237 Nonmajor Governmental Allstate Arena 150,000 Nonmajor Governmental Convention Center Facility 395,000 Nonmajor Governmental Entertainment District 150,000 Nonmajor Business-Type General 203,550

61,814,697

Interfund transfers were made to fund debt service requirements and/or capital projects from specific resources provided for those purposes and to transfer proprietary fund income to the General Fund or proprietary fund losses from the General Fund.

36 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued

CAPITAL ASSETS

Governmental Activities

Governmental capital asset activity for the year was as follows:

Beginning Ending Balances Increases Decreases Balances Nondepreciable Capital Assets Land $ 59,445,798 350,907 - 59,796,705 Museum Collection 4,430,584 - - 4,430,584 Construction in Progress 8,361,638 4,547,819 4,572,735 8,336,722 72,238,020 4,898,726 4,572,735 72,564,011 Depreciable Capital Assets Buildings and Improvements 76,223,000 7,740,508 - 83,963,508 Furniture, Fixtures and Equipment 10,118,803 31,250 - 10,150,053 Motor Vehicles, Heavy Equipment and Trucks 6,473,019 277,826 133,559 6,617,286 Infrastructure 71,501,765 2,270,830 - 73,772,595 164,316,587 10,320,414 133,559 174,503,442 Less Accumulated Depreciation Buildings and Improvements 32,512,696 2,019,132 - 34,531,828 Furniture, Fixtures and Equipment 6,324,551 636,611 - 6,961,162 Motor Vehicles, Heavy Equipment and Trucks 4,838,768 463,966 133,559 5,169,175 Infrastructure 41,972,395 2,137,127 - 44,109,522 85,648,410 5,256,836 133,559 90,771,687 Total Net Depreciable Capital Assets 78,668,177 5,063,578 - 83,731,755 Total Net Capital Assets 150,906,197 9,962,304 4,572,735 156,295,766

Depreciation expense was charged to governmental activities as follows:

Executive and Legislative and General Government $ 1,345,448 Public Works and Economic Development 2,319,901 Public Safety 527,373 Housing and Social Services 338,736 Culture and Recreation 310,106 Building Department 5,773 Ballpark 409,499

5,256,836

37 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued

CAPITAL ASSETS – Continued

Business-Type Activities

Business-type capital asset activity for the year was as follows:

Beginning Ending Balances Increases Decreases Balances

Nondepreciable Capital Assets Land $ 52,800,289 - - 52,800,289 Construction in Progress 1,103,173 6,172,224 1,048,465 6,226,932 53,903,462 6,172,224 1,048,465 59,027,221

Depreciable Capital Assets Buildings and Improvements 373,937,591 3,784,391 - 377,721,982 Furniture, Fixtures and Equipment 23,918,172 441,880 - 24,360,052 Motor Vehicles, Heavy Equipment and Trucks 325,376 - - 325,376 Infrastructure - 521,045 - 521,045 398,181,139 4,747,316 - 402,928,455

Less Accumulated Depreciation Buildings and Improvements 157,238,944 11,272,100 - 168,511,044 Furniture, Fixtures and Equipment 14,920,993 1,770,426 - 16,691,419 Motor Vehicles, Heavy Equipment and Trucks 137,517 44,364 - 181,881 Infrastructure - 8,684 - 8,684 172,297,454 13,095,574 - 185,393,028

Total Net Depreciable Capital Assets 225,883,685 (8,348,258) - 217,535,427

Total Net Capital Assets 279,787,147 (2,176,034) 1,048,465 276,562,648

Depreciation expense was charged to business-type activities as follows:

Allstate Arena $ 2,155,822 Convention Center Facility 4,237,152 Commercial Properties 903,545 Entertainment District 4,252,039 Waterworks and Sewerage 323,138 Rosemont Theatre 811,440 Rosemont Health and Fitness 412,438

13,095,574 13,095,574

38 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued

LONG-TERM DEBT

General Obligation Bonds

The Village issues general obligation bonds to provide funds for the acquisition and redevelopment of real property, the acquisition or construction of capital facilities, pension and other post-employment benefits, and the refunding or repayment of existing long-term debt. General obligation bonds have been issued for both governmental and business-type activities. General obligation bonds issued for business-type activities are reported in the proprietary funds as they are expected to be repaid from proprietary revenues. General obligation bonds are direct obligations and pledge the full faith and credit of the Village and provide for tax levies or incremental taxes to fund the repayment of the bonds, subject to abatement as determined by the Village Board. Such abatements with respect to the 2015 tax levy aggregated $32,707,458. General obligation bonds currently outstanding are as follows:

Fund Debt Beginning Ending Issue Retired by Balances Issuances Retirements Balances

General Obligation Bonds of 2007B, due in annual installments of $665,000 to $1,000,000 plus interest at 4.84% to 5.43% through Debt December 1, 2018. Service $ 2,910,000 - 930,000 1,980,000 General Obligation Refunding Bonds of 2008C, due in annual installments of $885,000 to $1,080,000 plus interest at 3.00% to 4.00% through Debt December 1, 2016. Service 975,000 - 975,000 - General Obligation Refunding Bonds of 2010A, due in annual installments of $540,000 to $4,080,000 plus interest at 2.73% to 6.00% through Debt December 1, 2035. Service 30,840,000 - 3,460,000 27,380,000 General Obligation Refunding Bonds of 2010B, due in annual installments of $1,410,000 to $2,960,000 plus interest at Convention 3.89% to 6.60% through Center

December 1, 2030. Facility 30,525,000 - 1,410,000 29,115,000

39 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued

LONG-TERM DEBT – Continued

General Obligation Bonds – Continued

Fund Debt Beginning Ending Issue Retired by Balances Issuances Retirements Balances

General Obligation Refunding Bonds of 2010C, due in annual installments of $780,000 to $3,165,000 plus interest at 3.89% to 6.75% through Debt December 1, 2035. Service $ 32,635,000 - 2,665,000 29,970,000

General Obligation Bonds of 2011A, due in annual installments of $2,755,000 to $3,900,000 plus interest at 5.125% to 5.600% through Debt December 1, 2035. Service 20,325,000 - - 20,325,000

General Obligation Bonds of 2011B, due in annual installments of $245,000 to $2,820,000 plus interest at 2.375% to 6.125% through Debt December 1, 2030. Service 20,740,000 - - 20,740,000

General Obligation Refunding Bonds of 2011C, due in annual installments of $1,335,000 to $2,025,000 plus interest at 1.00% to 4.00% through Debt December 1, 2020. Service 8,860,000 - 1,550,000 7,310,000

General Obligation Bonds of 2011D, due in annual installments of $2,120,000 to $3,295,000 plus interest at 1.75% to 4.25% through Debt December 1, 2022. Service 17,460,000 - 2,270,000 15,190,000

40 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued

LONG-TERM DEBT – Continued

General Obligation Bonds – Continued

Fund Debt Beginning Ending Issue Retired by Balances Issuances Retirements Balances

General Obligation Bonds of 2012A, due in annual installments of $2,700,000 to $6,195,000 plus interest at 4.35% to 5.50% through Debt December 1, 2035. Service $ 59,390,000 - - 59,390,000

General Obligation Bonds of 2012B, due in annual installments of $800,000 to $11,860,000 plus interest at 1.454% to 3.021% through Debt December 1, 2019. Service 43,545,000 - 9,965,000 33,580,000

General Obligation Bonds of 2013B, due in annual installments of $275,000 to $515,000 plus interest at 2.00% to 4.00% through December 1, Debt 2023. Service 2,935,000 - 265,000 2,670,000

General Obligation Taxable Refunding Bonds of 2014A, due in annual installments of $1,045,000 to $6,980,000 plus interest at 0.50% to 3.50% Debt through December 1, 2021. Service 35,285,000 - 5,425,000 29,860,000

General Obligation Taxable Bonds of 2015A, due in annual installments of $4,815,000 to $5,995,000 plus interest at 3.364% to 4.114% through Debt December 1, 2028. Service 37,595,000 - - 37,595,000

344,020,000 - 28,915,000 315,105,000

41 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued

LONG-TERM DEBT – Continued

Promissory Notes Payable

The Village enters into promissory notes payable for the purpose of land acquisition. A promissory note payable has been issued for the governmental activities. Promissory notes payable are direct obligations and pledge the full faith and credit of the Village. Promissory notes payable currently outstanding are as follows:

Fund Debt Beginning Ending Issue Retired by Balances Issuances Retirements Balances

Promissory Note of 2015 due in annual installments of $100,000 to $4,400,000 plus interest at 1.85% through April 1, 2017. General $ 4,500,000 - 4,500,000 -

Legal Debt Margin

Article VII, Section 6(k) of the 1970 Illinois Constitution governs the computation of legal debt margin. “The General Assembly may limit by law the amount and require referendum approval of debt to be incurred by home rule municipalities, payable from ad valorem property tax receipts, only in excess of the following percentages of the assessed value of its taxable property…(3) if its population is 25,000 or less an aggregate of one-half percent. Indebtedness which is outstanding on the effective date (July 1, 1971) of this constitution or which is thereafter approved by referendum…shall not be included in the foregoing percentage amounts.” To date the Illinois General Assembly has set no limits for home rule municipalities. The Village is a home rule municipality.

Long-Term Liability Activity

For the governmental activities, the compensated absences, the net pension liability, and the net other post-employment benefit obligation are generally liquidated by the General Fund. The general obligation bonds are being liquidated by Debt Service funds. The promissory note payable is being liquidated by the General Fund.

For the business-type activities, the compensated absences, the net pension liability, and the net other post-employment benefit obligation are being liquidated by the Allstate Arena, the Convention Center Facility, the Commercial Properties, the Rosemont Theatre, the Entertainment District, the Waterworks and Sewerage, and the Rosemont Health and Fitness Funds. The Convention Center Facility Fund makes payments on the general obligation bonds.

42 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued

LONG-TERM DEBT – Continued

Long-Term Liability Activity – Continued

Changes in long-term liabilities during the fiscal year were as follows:

Amounts Beginning Ending Due within Type of Debt Balances Additions Deductions Balances One Year

Governmental Activities Compensated Absences $ 506,953 83,500 41,750 548,703 109,741 Net Pension Liability - IMRF 4,800,396 - 2,194,044 2,606,352 - Net Pension Liability Public Safety Officers' Pension 19,190,396 - 1,407,873 17,782,523 - Net Other Post-Employment Benefit Obligation 19,496,428 4,831,997 - 24,328,425 - General Obligation Bonds 313,495,000 - 27,505,000 285,990,000 27,375,000 Plus/Less Unamortized Items: Premium 91,426 - 11,428 79,998 11,428 Discount (2,324,101) - (165,532) (2,158,569) (165,532) Promissory Note 4,500,000 - 4,500,000 - -

359,756,498 4,915,497 35,494,563 329,177,432 27,330,637

Business-Type Activities Compensated Absences 335,656 114,288 57,144 392,800 78,560 Net Pension Liability - IMRF - 1,996,035 - 1,996,035 - Net Other Post-Employment Benefit Obligation 5,204,851 1,779,263 - 6,984,114 - General Obligation Bonds 30,525,000 - 1,410,000 29,115,000 1,465,000 Less Unamortized Items: Discount (407,400) - (27,160) (380,240) (27,160)

35,658,107 3,889,586 1,439,984 38,107,709 1,516,400

43 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued

LONG-TERM DEBT – Continued

Debt Service Requirements to Maturity

The annual debt service requirements to maturity, including principal and interest, are as follows:

Governmental Activities Business-Type Activities General Obligation General Obligation Fiscal Bonds Bonds Year Principal Interest Principal Interest

2017 $ 27,375,000 12,669,909 1,465,000 1,689,488 2018 29,330,000 11,878,919 1,530,000 1,626,640 2019 30,390,000 10,930,993 1,600,000 1,554,424 2020 19,325,000 9,880,767 1,675,000 1,476,504 2021 11,590,000 9,101,689 1,760,000 1,392,418 2022 10,695,000 8,633,644 1,850,000 1,304,418 2023 11,450,000 8,190,880 1,945,000 1,207,294 2024 12,370,000 7,701,326 2,050,000 1,102,750 2025 12,920,000 7,147,242 2,165,000 987,438 2026 13,515,000 6,550,234 2,290,000 862,950 2027 14,160,000 5,903,474 2,445,000 711,810 2028 14,865,000 5,203,506 2,605,000 550,440 2029 9,385,000 4,441,168 2,775,000 378,510 2030 9,930,000 3,895,350 2,960,000 195,360 2031 10,480,000 3,345,180 - - 2032 11,070,000 2,756,848 - - 2033 11,700,000 2,124,474 - - 2034 12,365,000 1,460,208 - - 2035 13,075,000 751,538 - -

Totals 285,990,000 122,567,349 29,115,000 15,040,444

44 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued

LONG-TERM DEBT – Continued

NET INVESTMENT IN CAPITAL ASSETS

Net investment in capital assets was comprised of the following as of December 31, 2016:

Governmental Activities Capital Assets - Net of Accumulated Depreciation $ 156,295,766

Plus: Unamortized Refunding Loss 57,948 Unamortized Discount 205,613

Less Capital Related Debt: General Obligation Bonds of 2007B (400,000) General Obligation Refunding Bonds of 2010A (5,604,686) General Obligation Refunding Bonds of 2010C (11,829,159) General Obligation Bonds of 2011D (6,221,824) General Obligation Bonds of 2012B (2,361,167)

Net Investment in Capital Assets 130,142,491

Business-Type Activities Capital Assets - Net of Accumulated Depreciation 276,562,648

Plus: Unamortized Refunding Loss 2,024,610 Unamortized Discount 380,240

Less Capital Related Debt: General Obligation Refunding Bonds of 2010B (29,115,000)

Net Investment in Capital Assets 249,852,498

45 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 3 – DETAIL NOTES ON ALL FUNDS – Continued

FUND BALANCE CLASSIFICATIONS

In the governmental funds financial statements, the Village considers restricted amounts to have been spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. The Village first utilizes committed, then assigned and then unassigned fund balance when an expenditure is incurred for purposes for which all three unrestricted fund balances are available.

Special Revenue Special Tax Special Tax Capital Allocation Allocation Projects Redevelopment Redevelopment Redevelopment General Disrict #3 Disrict #4 District #6 Nonmajor Totals

Nonspendable Advances $ 48,948,576 - - - - 48,948,576 Prepaids/Inventories 111,404 - - - - 111,404 49,059,980 - - - - 49,059,980

Restricted Maintenance of Roadways - - - - 269,795 269,795 Public Safety - - - - 113,902 113,902 Debt Service - - - - 1,677,980 1,677,980 TIF Eligible Costs - 212,042 - - 42,989 255,031 Grant Eligible Costs - - - - 425,010 425,010 - 212,042 - - 2,529,676 2,741,718

Unassigned 20,776,505 - (5,859,405) (25,332,280) (18,802,549) (29,217,729)

Total Fund Balances 69,836,485 212,042 (5,859,405) (25,332,280) (16,272,873) 22,583,969

NOTE 4 – OTHER INFORMATION

FUTURE PAYMENTS RECEIVABLE

The Village leases buildings, offices, restaurants, entertainment facilities, and billboards under noncancelable leases. The terms of these leases are generally for three to five years for buildings, offices and billboards and 10 to 30 years for restaurants and entertainment facilities (subject to renewal), with office rents based on square footage plus an expenses escalation computed annually. The Village also leases land under noncancelable land leases with varying terms from one to one hundred years. The Village has also entered into various sponsorship and advertising agreements which provide funding to the Allstate Arena, Rosemont Theatre and The MB Financial Park at Rosemont.

46 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 4 – OTHER INFORMATION – Continued

RISK MANAGEMENT

The Village is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the Village carries commercial insurance. Also, the Village’s health insurance plan is self-funded up to a maximum of $90,000 per employee or $6,051,528 per year, with the excess being covered by a commercial insurance policy. Interfund reimbursements are assessed by the General Fund to other funds benefiting directly from claims paid from the General Fund. These reimbursements are used to reduce the amount of claims expenditures reported in the General Fund.

Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount of claims that have been incurred but not reported (IBNR). Claims liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amount of payouts, and other economic and social factors. Changes in the balances of claims liabilities are as follows:

Fiscal Year 12/31/16

Claims Payable - Beginning $ 431,417 Incurred Claims 6,910,887 Claims Paid (6,904,791)

Claims Payable - Ending 437,513

CONTINGENT LIABILITIES

Litigation

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

Grants

Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the Village expects such amounts, if any, to be immaterial.

47 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 4 – OTHER INFORMATION – Continued

CONTINGENT LIABILITIES – Continued

Concession Agreements

The Village entered into an agreement in 2009 with the concessionaire of the Allstate Arena. A payment of $750,000 was received by the Allstate Arena to assist with an expansion of the facility and for improving and renovating certain areas of the facility. This amount is being amortized into income evenly over 15 years. In 2014, this agreement was extended to December 31, 2029. In the event the agreement is terminated by either party for any reason during the term of the agreement, prorated amounts must be repaid without interest to the concessionaire.

In 2014, the Village entered into an agreement with the concessionaire of the Donald E. Stephens Convention Center. A payment of $2,500,000 was received by the Donald E. Stephens Convention Center to assist with improving and renovating certain areas of the facility. This amount is being amortized into income evenly over the 16-year term of the agreement. In the event the agreements are terminated by either party for any reason during the term of the agreements, prorated amounts must be repaid without interest to the concessionaire.

EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS

The Village contributes to two defined benefit pension plans, the Illinois Municipal Retirement Fund (IMRF), a defined benefit agent multiple-employer public employee retirement system and the Public Safety Officers’ Pension (PSOP) Plan which is a single-employer pension plan. The PSOP Plan is governed by Village Ordinance. IMRF issues a publicly available financial report that includes financial statements and required supplementary information for the plan as a whole, but not by individual employer. That report may be obtained on-line at www.imrf.org. The benefits, benefit levels, employee contributions, and employer contributions are governed by Illinois Compiled Statutes (ILCS) and can only be amended by the Illinois General Assembly.

Illinois Municipal Retirement Fund (IMRF)

Plan Descriptions

Plan Administration. All employees (other than those covered by the PSOP Plan) hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF as participating members. The plan is accounted for on the economic resources measurement focus and the accrual basis of accounting. Employer and employee contributions are recognized when earned in the year that the contributions are required, benefits and refunds are recognized as an expense and liability when due and payable.

48 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 4 – OTHER INFORMATION – Continued

EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued

Illinois Municipal Retirement Fund (IMRF) – Continued

Plan Descriptions – Continued

Benefits Provided. IMRF has three benefit plans. The vast majority of IMRF members participate in the Regular Plan (RP). The Sheriff’s Law Enforcement Personnel (SLEP) plan is for sheriffs, deputy sheriffs, and selected police chiefs. Counties could adopt the Elected County Official (ECO) plan for officials elected prior to August 8, 2011 (the ECO plan was closed to new participants after that date).

IMRF provides two tiers of pension benefits. Employees hired before January 1, 2011, are eligible for Tier 1 benefits. Tier 1 employees are vested for pension benefits when they have at least eight years of qualifying service credit. Tier 1 employees who retire at age 55 (at reduced benefits) or after age 60 (at full benefits) with eight years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any consecutive 48 months within the last 10 years of service, divided by 48. Under Tier 1, the pension is increased by 3% of the original amount on January 1 every year after retirement.

Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 employees, pension benefits vest after ten years of service. Participating employees who retire at age 62 (at reduced benefits) or after age 67 (at full benefits) with ten years of service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased on January 1 every year after retirement, upon reaching age 67, by the lesser of:

3% of the original pension amount, or 1/2 of the increase in the Consumer Price Index of the original pension amount.

Plan Membership. As of December 31, 2016, the measurement date, the following employees were covered by the benefit terms:

Inactive Plan Members Currently Receiving Benefits 97 Inactive Plan Members Entitled to but not yet Receiving Benefits 29 Active Plan Members 193

Total 319

49 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 4 – OTHER INFORMATION – Continued

EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued

Illinois Municipal Retirement Fund (IMRF) – Continued

Plan Descriptions – Continued

Contributions. As set by statute, the Village’s Regular Plan Members are required to contribute 4.50% of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The Village’s annual contribution rate for calendar year 2016 was 10.36% of covered payroll.

Net Pension Liability. The Village’s net pension liability was measured as of December 31, 2016. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date.

Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed, as of December 31, 2016, using the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Normal

Asset Valuation Method Market

Actuarial Assumptions Interest Rate 7.50%

Salary Increases 3.75% to 14.50%

Cost of Living Adjustments 3.50%

Inflation 2.75%

For nondisabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2012). IMRF specific rates were developed from the RP-2014 Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For disabled retirees, an IMRF specific mortality tables was used with fully generational projection scale MP-2014 (base year 2012). IMRF specific rates were developed from the RP-2014 Disabled Retirees Mortality Table applying the same adjustment that were applied for nondisabled lives. For active members, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2012). IMRF specific rates were developed from the RP-2014 Employee Mortality Table with adjustments to match current IMRF experience.

50 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 4 – OTHER INFORMATION – Continued

EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued

Illinois Municipal Retirement Fund (IMRF) – Continued

Discount Rate

The discount rate used to measure the total pension liability was 7.50%, the same as the prior valuation. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability.

For the purpose of the most recent valuation, the expected rate of return on plan investments is 7.50%, the municipal bond rate is 3.78%, and the resulting single discount rate is 7.50%.

Discount Rate Sensitivity

The following presents the plan’s net pension liability/(asset), calculated using a Single Discount Rate of 7.50%, as well as what the plan’s net pension liability/(asset) would be if it were calculated using a Single Discount Rate that is 1% lower or 1% higher:

Current 1% Decrease Discount Rate 1% Increase (6.50%) (7.50%) (8.50%)

Net Pension Liability/(Asset) $ 12,190,622 4,602,387 (1,604,205)

51 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 4 – OTHER INFORMATION – Continued

EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued

Illinois Municipal Retirement Fund (IMRF) – Continued

Changes in the Net Pension Liability

Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (A) (B) (A) - (B)

Balances at December 31, 2015 $ 52,218,706 47,418,310 4,800,396

Changes for the Year: Service Cost 1,284,528 - 1,284,528 Interest on the Total Pension Liability 3,880,845 - 3,880,845 Changes of Benefit Terms - - - Difference Between Expected and Actual Experience of the Total Pension Liability (660,155) - (660,155) Changes of Assumptions (70,138) - (70,138) Contributions - Employer - 1,239,724 (1,239,724) Contributions - Employees - 545,913 (545,913) Net Investment Income - 3,291,062 (3,291,062) Benefit Payments, including Refunds of Employee Contributions (2,094,575) (2,094,575) - Other (Net Transfer) - (443,610) 443,610

Net Changes 2,340,505 2,538,514 (198,009)

Balances at December 31, 2016 54,559,211 49,956,824 4,602,387

52 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 4 – OTHER INFORMATION – Continued

EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued

Illinois Municipal Retirement Fund (IMRF) – Continued

Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions

For the year ended December 31, 2016, the Village recognized pension expense of $2,575,974. At December 31, 2016, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred Outflows of Inflows of Resources Resources Totals

Difference Between Expected and Actual Experience $ 505,287 (771,772) (266,485)

Change in Assumptions 888,464 (60,262) 828,202

Net Difference Between Projected and Actual Earnings on Pension Plan Investments 2,399,520 - 2,399,520

Total Deferred Amounts Related to IMRF 3,793,271 (832,034) 2,961,237

Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future periods as follows:

Net Deferred Fiscal Outflows Year of Resources

2017 $ 1,041,057 2018 1,041,057 2019 919,442 2020 206,316 2021 (133,340) Thereafter (113,295)

Total 2,961,237

53 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 4 – OTHER INFORMATION – Continued

EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued

Public Safety Officers’ Pension Plan (PSOP)

Plan Descriptions

Plan Description. The Village of Rosemont, Illinois, Public Safety Officers’ Pension Fund (PSOPF) is a single-employer plan administered by the Village, covering sworn police personnel. The PSOPF is included in these financial statements as a pension trust fund.

Plan Membership. At December 31, 2016, the measurement date, membership consisted of the following:

Inactive Plan Members Currently Receiving Benefits 72 Inactive Plan Members Entitled to but not yet Receiving Benefits - Active Plan Members 78 150

Benefits Provided. The following is a summary of the PSOPF as provided for by Village ordinance.

Benefits provisions and all other requirements are established by Village ordinance. All Public Safety Officers are eligible to participate in the PSOPF but must elect to do so. For officers employed prior to January 1, 2012, benefits vest after eight years of service. Officers who retire at or after age 50 with 20 or more years of service are entitled to a pension of one-half of either the salary attached to the rank held by the officer for one year immediately prior to retirement or the highest salary paid to the officer during one of the five calendar years immediately prior to retirement, whichever is higher. The pension increases by 2.5% of such salary for each additional year of service over 20 years, to a maximum of 75% of such salary. Commencing at age 60, officers retiring with more than eight, but less than 20, years of service receive a pension equal to 2.5% of the salary attached to the rank held for one year immediately prior to retirement for each year of service.

Officers employed on or after January 1, 2012, at age 55 with 10 or more years of service are entitled to a monthly pension computed by multiplying 2.5% for each year of service by the final average salary. The pension of officers who retire after age 50 with 10 or more years of service will be reduced by one-half of 1% for each month that the officer is under age 55. The maximum pension is 75% of the officer’s final average salary.

Officers employed on or after August 10, 2016; at age 55 with 10 or more years of creditable service are entitled to a monthly pension computed as 2.00% of final average salary for each year of service up to 10 years of creditable service, 2.25% of final average salary for each year of service greater than 10 years up to and including 30 years of credible service, and 2.50% of final average salary for each year of creditable service greater than 30 years. The pension of officers who retire after age 50 with 10 or more years of service will be reduced by one-half of 1% for each month that the officer is under age 55. The maximum pension is 75% of the officer’s final average salary.

The PSOPF also provides death and disability benefits. 54 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 4 – OTHER INFORMATION – Continued

EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued

Public Safety Officers’ Pension Plan (PSOP) – Continued

Plan Descriptions – Continued

Funding Policy. Participating members are required to contribute 9.2% of their annual regular salary to the PSOPF. The Village may, but is not required to, make annual contributions to the PSOPF. The ordinance establishing the PSOPF obliges the Village to make any required benefit payments if the PSOPF has insufficient funds to do so. During 2007, the Village issued $35,000,000 Taxable General Obligation Benefit Funding Bonds, Series 2007A. The proceeds of the bonds will be used to fund future benefits of the PSOPF and other postemployment benefits. Related to the funds available from this issuance, the Village created the Village of Rosemont Postemployment Benefit Trust to hold and invest the proceeds. This trust is reported in the Pension Trust Fund as “Restricted Retirement Trust.” The Series 2007A Bonds were refunded in 2014 with the $37,615,000 General Obligation Refunding Bonds, Taxable Series 2014A.

In 2015, the Village issued the $37,595,000 General Obligation Bonds, Taxable Series 2015A to fund future benefits of the PSOPF. The $32,854,313 proceeds from this bond issuance were deposited into the Village of Rosemont Post-Employment Benefit Trust. In 2016, the Village made a $2,500,000 contribution to the PSOPF.

Basis of Accounting. The financial statements are prepared using the accrual basis of accounting. Employee and employer contributions are recognized as revenues when due, pursuant to formal commitments, as well as statutory or contractual requirements. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan.

Method Used to Value Investments. Investments are reported at fair value. Short–term investments are reported at cost, which approximates fair value. Securities traded on national exchanges are valued at the last reported sales price. Investments that do not have any established market, if any, are reported at estimated fair value.

Significant Investments. At year-end, the PSOPF had no investments greater than 5% of its overall portfolio (other than U.S. Government guaranteed obligations and mutual funds).

Related Party Transactions. There are no securities of the employer or any other related parties included in plan assets.

55 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 4 – OTHER INFORMATION – Continued

EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued

Public Safety Officers’ Pension Plan (PSOP) – Continued

Actuarial Assumptions

The total pension liability was determined by an actuarial valuation performed, as of December 31, 2016, using the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Normal

Asset Valuation Method Market

Actuarial Assumptions Interest Rate 6.75%

Salary Increases 3.75% to 12.00%

Cost of Living Adjustments 2.50%

Inflation 2.50%

Mortality rates were based on a 50%/50% Blend of the independent actuary study for Firefighters and Police Officers.

Discount Rate

The discount rate used to measure the total pension liability was 6.75%, the same as the prior valuation. The projection of cash flows used to determine the discount rate assumed that member contributions will be made at the current contribution rate and that Village contributions will be made at rates equal to the difference between the actuarially determined contribution rates and the member rate. Based on those assumptions, the Fund’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability.

56 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 4 – OTHER INFORMATION – Continued

EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued

Public Safety Officers’ Pension Plan (PSOP) – Continued

Discount Rate Sensitivity

The following is a sensitivity analysis of the net pension liability to changes in the discount rate. The table below presents the pension liabilities calculated using the discount rate as well as what the net pension liabilities would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate:

Current 1% Decrease Discount Rate 1% Increase (5.75%) (6.75%) (7.75%)

Net Pension Liability $ 34,216,049 17,782,523 4,467,772

Changes in the Net Pension Liability

Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (A) (B) (A) - (B)

Balances at December 31, 2015 $ 107,573,194 88,382,798 19,190,396

Changes for the Year: Service Cost 1,840,057 - 1,840,057 Interest on the Total Pension Liability 7,090,580 - 7,090,580 Changes of Benefit Terms (61,536) - (61,536) Difference Between Expected and Actual Experience of the Total Pension Liability 1,368,728 - 1,368,728 Changes of Assumptions (811,019) - (811,019) Contributions - Employer - 2,500,000 (2,500,000) Contributions - Employees - 710,040 (710,040) Net Investment Income - 7,634,289 (7,634,289) Benefit Payments, including Refunds of Employee Contributions (5,055,137) (5,055,137) - Administrative Expense - (9,646) 9,646

Net Changes 4,371,673 5,779,546 (1,407,873)

Balances at December 31, 2016 111,944,867 94,162,344 17,782,523

57 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 4 – OTHER INFORMATION – Continued

EMPLOYEE RETIREMENT SYSTEM – DEFINED BENEFIT PENSION PLANS – Continued

Public Safety Officers’ Pension Plan (PSOP) – Continued

Pension Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to Pensions

For the year ended December 31, 2016, the Village recognized pension expense of $4,603,005. At December 31, 2016, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred Outflows of Inflows of Resources Resources Totals

Difference Between Expected and Actual Experience $ 5,615,719 - 5,615,719

Change in Assumptions 5,452,273 (712,832) 4,739,441

Net Difference Between Projected and Actual Earnings on Pension Plan Investments 3,157,768 (1,419,025) 1,738,743

Total Deferred Amounts Related to PSOP 14,225,760 (2,131,857) 12,093,903

Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense in future periods as follows:

Net Deferred Fiscal Outflows Year of Resources

2017 $ 2,294,806 2018 2,294,806 2019 2,294,804 2020 1,242,219 2021 1,596,973 Thereafter 2,370,295

Total 12,093,903

58 VILLAGE OF ROSEMONT, ILLINOIS

Notes to the Financial Statements December 31, 2016

NOTE 4 – OTHER INFORMATION – Continued

Other Post-Employment Benefit Plan

Required Supplementary Information Schedule of Funding Progress and Employer Contributions

December 31, 2016

Funding Progress (6) Unfunded (Overfunded) (4) Actuarial (2) Unfunded Accrued (1) Actuarial (Overfunded) Liability as a Actuarial Actuarial Accrued (3) Actuarial (5) Percentage Valuation Value Liability Funded Accrued Annual of Covered Date of Plan (AAL) Ratio Liability Covered Payroll Dec. 31, Assets - Entry Age (1) ÷ (2) (2) - (1) Payroll (4) ÷ (5)

2011 $ - $ 47,667,913 0.00% $ 47,667,913 $ 15,890,681 299.97% 2012 N/A N/A N/A N/A N/A N/A 2013 - 79,313,809 0.00% 79,313,809 16,921,401 468.72% 2014 N/A N/A N/A N/A N/A N/A 2015 - 113,320,170 0.00% 113,320,170 25,163,364 450.34% 2016 N/A N/A N/A N/A N/A N/A

Employer Contributions Annual Fiscal Employer Required Percent Year Contributions Contribution Contributed

2011 $ 1,076,406 $ 3,488,340 30.86% 2012 1,076,406 3,324,795 32.38% 2013 1,122,074 3,324,795 33.75% 2014 1,122,074 5,718,584 19.62% 2015 2,246,167 8,768,415 25.62% 2016 2,672,566 9,119,151 29.31%

The Village is required to have an actuarial valuation performed biennially.

N/A - Not Available

64 VILLAGE OF ROSEMONT, ILLINOIS

Illinois Municipal Retirement Fund

Required Supplementary Information Schedule of Employer Contributions December 31, 2016

Contributions in Relation to Contributions as Actuarially the Actuarially Contribution Covered- a Percentage of Calendar Determined Determined Excess/ Employee Covered-Employee Year Contribution Contribution (Deficiency) Payroll Payroll

2015 $ 1,385,414 $ 2,278,763 $ 893,349 $ 11,516,323 19.79% 2016 1,239,724 1,239,724 - 11,966,445 10.36%

Notes to the Required Supplementary Information:

Actuarial Cost Method Entry Age Normal Amortization Method Level % Pay (Closed) Remaining Amortization Period 27 Years Asset Valuation Method 5-Year Smoothed Market Inflation 2.75% Salary Increases 3.75% - 14.50% Investment Rate of Return 7.50% Retirement Age See the Notes to the Financial Statements Mortality MP-2014 Employee Mortality Table

Note: This schedule is intended to show information for ten years and additional year's information will be displayed as it becomes available.

65 VILLAGE OF ROSEMONT, ILLINOIS

Public Safety Officers' Pension Fund

Required Supplementary Information Schedule of Employer Contributions December 31, 2016

Contributions in Relation to Contributions as Actuarially the Actuarially Contribution Covered- a Percentage of Fiscal Determined Determined Excess/ Employee Covered-Employee Year Contribution Contribution (Deficiency) Payroll Payroll

2014 $ 4,206,547 $ 4,500,000 $ 293,453 $ 7,359,441 61.15% 2015 4,507,406 33,854,313 29,346,907 7,825,485 432.62% 2016 2,549,925 2,500,000 (49,925) 7,814,477 31.99%

Notes to the Required Supplementary Information:

Actuarial Cost Method Entry Age Normal Amortization Method Level % Pay (Closed) Remaining Amortization Period 24 Years Asset Valuation Method 5-Year Smoothed Market Inflation 2.50% Salary Increases 3.75% to 12.00% Investment Rate of Return 6.75% Retirement Age See the Notes to the Financial Statements Mortality 50%/50% Blend of the 2016 Independent Actuary's Assumption Study for Firefighters and Police

Note: This schedule is intended to show information for ten years and additional year's information will be displayed as it becomes available.

66 VILLAGE OF ROSEMONT, ILLINOIS

Illinois Municipal Retirement Fund

Required Supplementary Information Schedule of Changes in the Employer's Net Pension Liability December 31, 2016

2015 2016

Total Pension Liability Service Cost $ 1,237,661 1,284,528 Interest 3,684,853 3,880,845 Changes in Benefit Terms - - Differences Between Expected and Actual Experience (286,852) (660,155) Change of Assumptions 68,167 (70,138) Benefit Payments, Including Refunds of Member Contributions (1,995,337) (2,094,575)

Net Change in Total Pension Liability 2,708,492 2,340,505 Total Pension Liability - Beginning 49,510,214 52,218,706

Total Pension Liability - Ending 52,218,706 54,559,211

Plan Fiduciary Net Position Contributions - Employer $ 2,278,763 1,239,724 Contributions - Members 590,499 545,913 Contributions - Other - - Net Investment Income 234,569 3,291,062 Benefit Payments, Including Refunds of Member Contributions (1,995,337) (2,094,575) Other (Net Transfers) (166,936) (443,610)

Net Change in Plan Fiduciary Net Position 941,558 2,538,514 Plan Net Position - Beginning 46,476,752 47,418,310

Plan Net Position - Ending 47,418,310 49,956,824

Employer's Net Pension Liability $ 4,800,396 4,602,387

Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 90.81% 91.56%

Covered-Employee Payroll $ 11,516,323 11,966,445

Employer's Net Pension Liability as a Percentage of Covered-Employee Payroll 41.68% 38.46%

Note: This schedule is intended to show information for ten years and additional year's information will be displayed as it becomes available.

67 VILLAGE OF ROSEMONT, ILLINOIS

Public Safety Officers' Pension Fund

Required Supplementary Information Schedule of Changes in the Employer's Net Pension Liability December 31, 2016

2014

Total Pension Liability Service Cost $ 2,267,725 Interest 5,609,941 Change in Benefit Terms - Differences Between Expected and Actual Experience 1,339,145 Change of Assumptions 1,252,288 Benefit Payments, Including Refunds of Member Contributions (4,032,104)

Net Change in Total Pension Liability 6,436,995 Total Pension Liability - Beginning 84,958,284

Total Pension Liability - Ending 91,395,279

Plan Fiduciary Net Position Contributions - Employer $ 4,500,000 Contributions - Members 695,751 Net Investment Income 3,335,545 Benefit Payments, Including Refunds of Member Contributions (4,032,104) Administrative Expense (7,400)

Net Change in Plan Fiduciary Net Position 4,491,792 Plan Net Position - Beginning 54,269,652

Plan Net Position - Ending 58,761,444

Employer's Net Pension Liability $ 32,633,835

Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 64.29%

Covered-Employee Payroll $ 7,359,441

Employer's Net Pension Liability as a Percentage of Covered-Employee Payroll 443.43%

Note: This schedule is intended to show information for ten years and additional year's information will be displayed as it becomes available.

68 2015 2016

1,802,635 1,840,057 6,015,155 7,090,580 - (61,536) 5,780,976 1,368,728 7,142,901 (811,019) (4,563,752) (5,055,137)

16,177,915 4,371,673 91,395,279 107,573,194

107,573,194 111,944,867

33,854,313 2,500,000 655,181 710,040 (313,288) 7,634,289 (4,563,752) (5,055,137) (11,100) (9,646)

29,621,354 5,779,546 58,761,444 88,382,798

88,382,798 94,162,344

19,190,396 17,782,523

82.16% 84.11%

7,825,485 7,814,477

245.23% 227.56%

69 VILLAGE OF ROSEMONT, ILLINOIS

Public Safety Officers' Pension Fund

Required Supplementary Information Schedule of Investment Returns December 31, 2016

Annual Money- Weighted Rate of Return, Net Fiscal of Investment Year Expense

2014 4.80% 2015 0.64% 2016 7.63%

Note: This schedule is intended to show information for ten years and additional year's information will be displayed as it becomes available.

70 VILLAGE OF ROSEMONT, ILLINOIS

General Fund

Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended December 31, 2016

Budget Original Final Actual

Revenues Taxes $ 36,435,500 36,435,500 38,250,062 Licenses and Fees 812,500 812,500 802,304 Intergovernmental - - 48,390 Charges for Services 1,939,000 1,939,000 1,496,597 Fines and Forfeitures 1,265,000 1,265,000 1,311,140 Interest 53,000 53,000 3,397,764 Rent 2,570,000 2,570,000 2,761,424 Miscellaneous 110,000 110,000 957,354 Total Revenues 43,185,000 43,185,000 49,025,035

Expenditures Current Executive and Legislative 838,400 838,400 779,805 General Government 11,047,500 11,047,500 10,006,966 Creative and Design 511,450 511,450 514,690 Public Works and Economic Development 5,445,500 5,445,500 5,080,643 Public Safety 14,725,000 14,725,000 17,028,913 Health and License 315,500 315,500 282,407 Housing and Social Services 2,373,065 2,373,065 2,094,591 Business Development Commission 320,500 320,500 290,413 Culture and Recreation 439,200 439,200 485,385 Building Department 321,100 321,100 283,178 Ballpark 1,155,900 1,155,900 1,017,049 Capital Outlay 11,724,885 11,724,885 5,627,832 Debt Service Principal Payment 4,500,000 4,500,000 4,500,000 Interest and Fiscal Charges 83,250 83,250 43,845 Total Expenditures 53,801,250 53,801,250 48,035,717

Excess (Deficiency) of Revenues Over Expenditures (10,616,250) (10,616,250) 989,318

Other Financing Sources (Uses) Debt Issuance 10,000,000 10,000,000 - Disposal of Capital Assets 5,575,000 5,575,000 3,995 Transfers In - - 12,466,962 Transfers Out - - (11,039,340) Total Other Financing Sources (Uses) 15,575,000 15,575,000 1,431,617

Net Change in Fund Balance 4,958,750 4,958,750 2,420,935

Fund Balance - Beginning 67,415,550

Fund Balance - Ending 69,836,485

71 OTHER SUPPLEMENTARY INFORMATION

Other supplementary information includes financial statements and schedules not required by the GASB, nor a part of the basic financial statements, but are presented for purposes of additional analysis.

Such statements and schedules include:

• Budgetary Comparison Schedules – Major Governmental Fund

• Combining Statements – Nonmajor Governmental Funds

• Combining Statements – Nonmajor Enterprise Funds COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

GENERAL FUND

The General Fund accounts for all financial resources except those required to be accounted for in another fund.

SPECIAL REVENUE FUNDS

Special Revenue Funds are created to account for the proceeds of specific revenue sources (other than fiduciary funds or capital project funds) that are legally restricted to expenditure for specified purposes.

Special Tax Allocation Redevelopment District #3 Fund

The Special Tax Allocation Redevelopment District #3 Fund is used to account for specific incremental tax revenue that is legally restricted to expenditures within Tax Increment Financing Redevelopment District #3.

Special Tax Allocation Redevelopment District #4 Fund

The Special Tax Allocation Redevelopment District #4 Fund is used to account for specific incremental tax revenue that is legally restricted to expenditures within Tax Increment Financing Redevelopment District #4.

Emergency 911 Fund

The Emergency 911 Fund is used to account for surcharge revenue received for the E-911 system. Expenditures are used for the maintenance and upgrading of the E-911 system.

Motor Fuel Tax Fund

The Motor Fuel Tax Fund is used to account for funds received from the State of Illinois Motor Fuel Tax to be used for operating and maintaining local streets and roads.

Rosemont Visitor and Tourism Bureau Fund

The Rosemont Visitor and Tourism Bureau Fund is used to account for funds received from the State of Illinois Department of Commerce and Economic Opportunities to be used for the promotion of the Village as a travel and entertainment destination.

Special Service Area #2 Fund

The Special Service Area #2 Fund is used to account for the accumulation of resources for improvements to the Special Service Area #2. COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

SPECIAL REVENUE FUNDS – Continued

Special Tax Allocation Redevelopment District #5 Fund

The Special Tax Allocation Redevelopment District #5 Fund is used to account for specific incremental tax revenue that is legally restricted to expenditures within Tax Increment Financing Redevelopment District #5.

Special Tax Allocation Redevelopment District #6 Fund

The Special Tax Allocation Redevelopment District #6 Fund is used to account for specific incremental tax revenue that is legally restricted to expenditures within Tax Increment Financing Redevelopment District #6.

DEBT SERVICE FUNDS

Debt Service Funds are created to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest.

Series 2007B Fund

The Series 2007B Fund is used to account for the principal and interest payments made on the Series 2007B bonds.

Series 2008C Fund

The Series 2008C Fund is used to account for the principal and interest payments made on the Series 2008C bonds.

Series 2010A Fund

The Series 2010A Fund is used to account for the principal and interest payments made on the Series 2010A bonds.

Series 2010C Fund

The Series 2010C Fund is used to account for the principal and interest payments made on the Series 2010C bonds.

Series 2011A Fund

The Series 2011A Fund is used to account for the principal and interest payments made on the Series 2011A bonds. COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

DEBT SERVICE FUNDS – Continued

Series 2011B Fund

The Series 2011B Fund is used to account for the principal and interest payments made on the Series 2011B bonds.

Series 2011C Fund

The Series 2011C Fund is used to account for the principal and interest payments made on the Series 2011C bonds.

Series 2011D Fund

The Series 2011D Fund is used to account for the principal and interest payments made on the Series 2011D bonds.

Series 2012A Fund

The Series 2012A Fund is used to account for the principal and interest payments made on the Series 2012A bonds.

Series 2012B Fund

The Series 2012B Fund is used to account for the principal and interest payments made on the Series 2012B bonds.

Series 2013B Fund

The Series 2013B Fund is used to account for the principal and interest payments made on the Series 2013B bonds.

Series 2014A Fund

The Series 2014A Fund is used to account for the principal and interest payments made on the Series 2014A bonds.

Series 2015A Fund

The Series 2015A Fund is used to account for the principal and interest payments made on the Series 2015A bonds. COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

CAPITAL PROJECTS FUNDS

Capital Projects Funds are created to account for all resources used for the acquisition of capital facilities by a governmental unit except those financed by Proprietary Funds.

Redevelopment District #6 Fund

The Redevelopment District #6 Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities and redevelopment within Tax Increment Financing Redevelopment District #6.

Redevelopment District #3 Fund

The Redevelopment District #3 Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities and redevelopment within Tax Increment Financing Redevelopment District #3.

Redevelopment District #4 Fund

The Redevelopment District #4 Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities and redevelopment within Tax Increment Financing Redevelopment District #4.

Redevelopment District #5 Fund

The Redevelopment District #5 Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities and redevelopment within Tax Increment Financing Redevelopment District #5.

Redevelopment District #7 Fund

The Redevelopment District #7 Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities and redevelopment within Tax Increment Financing Redevelopment District #7.

Redevelopment District #8 Fund

The Redevelopment District #8 Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities and redevelopment within Tax Increment Financing Redevelopment District #8. COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

CAPITAL PROJECTS FUNDS – Continued

2012A Bond Project Fund

The 2012A Bond Project Fund is used to account for the 2012A bond proceeds to be used for site improvements, building construction costs, tenant improvement costs and costs of improvements to public ways for the Entertainment District and the construction of a new parking facility and infrastructure for the retail shopping outlet mall.

2016A and B Bond Project Fund

The 2016A and B Bond Project Fund is used to account for the 2016A and B bond proceeds to be used for the contraction of two parking structures and a minor league baseball stadium located in TIF #8, along with various capital improvement projects in and for the Village.

Capital Grant Fund

The Capital Grant Fund is used to account for grant proceeds to be used for specific capital projects.

ENTERPRISE FUNDS

Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent is that costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where it has been decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purpose.

Allstate Arena Fund

The Allstate Arena Fund is used to account for the financial activities associated with holding entertainment and sports events in the Allstate Arena.

Convention Center Facility Fund

The Convention Center Facility Fund is used to account for the financial activities associated with holding events in the Donald E. Stephens Convention Center.

Commercial Properties Fund

The Commercial Properties Fund is used to account for the financial activities associated with owning and renting real estate to third-party users within the Village. COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND SCHEDULES

ENTERPRISE FUNDS – Continued

Entertainment District Fund

The Entertainment District Fund is used to account for the financial activities associated with the development and operations of an entertainment district within the Village.

Waterworks and Sewerage Fund

The Waterworks and Sewerage Fund is used to account for the provision of water and sewer services to the residents and businesses of the Village. All activities necessary to provide such services are accounted for in this fund including, but not limited to, administration, operations, maintenance, financing and related debt service, and billing and collection.

Rosemont Theatre Fund

The Rosemont Theatre Fund is used to account for the financial activities associated with holding entertainment events in the Rosemont Theatre.

Rosemont Health and Fitness Fund

The Rosemont Health and Fitness Fund is used to account for the financial activities associated with owning and operating a full service health club.

Baseball Stadium Fund

The Baseball Stadium Fund is used to account for the financial activities associated with owning and operating a minor league baseball stadium.

TRUST FUND

PENSION TRUST FUND

Public Safety Officers’ Pension Fund

The Public Safety Officers’ Pension Fund is used to account for the accumulation of resources and the payment of pensions to officers of the Village’s Public Safety Department. VILLAGE OF ROSEMONT, ILLINOIS

General Fund

Schedule of Revenues - Budget and Actual For the Year Ended December 31, 2016

Budget Original Final Actual

Taxes State Sales Tax $ 14,475,000 14,475,000 15,137,419 Hotel/Motel 13,275,000 13,275,000 14,305,902 Telecommunication and Utilities 2,300,000 2,300,000 2,210,039 Amusement 1,900,000 1,900,000 1,930,297 Restaurant Gross Receipts 2,500,000 2,500,000 2,538,861 Parking 1,225,000 1,225,000 1,230,087 Other 760,500 760,500 897,457 36,435,500 36,435,500 38,250,062

Licenses and Fees Licenses Business 350,000 350,000 393,983 Vehicles 20,000 20,000 17,695 Fees Building 175,000 175,000 144,770 Sign and Rental 5,000 5,000 6,875 Other 262,500 262,500 238,981 812,500 812,500 802,304

Intergovernmental State Grants - Operating - - 11,644 State Reimbursement - - 36,746 - - 48,390

Charges for Services Police Security 953,500 953,500 294,606 Ambulance Fees 225,000 225,000 202,725 Ballpark 500,000 500,000 609,133 Other 260,500 260,500 390,133 1,939,000 1,939,000 1,496,597

Fines and Forfeitures Police 1,265,000 1,265,000 1,311,140

Interest Interest Income 53,000 53,000 3,397,764

72 VILLAGE OF ROSEMONT, ILLINOIS

General Fund

Schedule of Revenues - Budget and Actual - Continued For the Year Ended December 31, 2016

Budget Original Final Actual

Rent Apartments $ 1,450,000 1,450,000 1,527,155 Single Family 20,000 20,000 15,850 Industrial Buildings - - 68,641 Garage - - 30,600 Ground Rent 1,100,000 1,100,000 1,119,178 2,570,000 2,570,000 2,761,424

Miscellaneous Chamber of Commerce Dues 110,000 110,000 141,570 Miscellaneous - - 815,784 110,000 110,000 957,354

Total Revenues 43,185,000 43,185,000 49,025,035

73 VILLAGE OF ROSEMONT, ILLINOIS

General Fund

Schedule of Expenditures - Budget and Actual For the Year Ended December 31, 2016

Budget Original Final Actual

Executive and Legislative Salary - Village President $ 145,000 145,000 144,999 Salaries - Trustees 215,000 215,000 212,616 Salaries - Appointed Officials 135,000 135,000 128,693 IMRF and FICA 75,500 75,500 59,606 Miscellaneous 218,400 218,400 221,725 Expenditures of Village President 49,500 49,500 12,166 838,400 838,400 779,805

General Government Salaries and Wages 1,087,500 1,087,500 1,101,330 IMRF and FICA 196,500 196,500 200,864 Office Supplies and Equipment 57,000 57,000 28,463 Printing and Stationery 6,000 6,000 4,332 Rent - Commercial Properties Fund 830,000 830,000 825,826 Rent - Other 82,500 82,500 80,432 Expenditures of Officials and Department Heads 250 250 - Repairs and Maintenance 52,500 52,500 60,055 Communications 79,250 79,250 75,436 Auditing 25,000 25,000 28,139 Legal Fees - Village Attorney 650,000 650,000 658,042 Public Relations 40,000 40,000 40,158 General Insurance 405,000 405,000 262,138 Employee Medical 5,200,000 5,200,000 4,558,628 Schools, Seminars and Meetings 100,000 100,000 81,750 Professional Services 785,000 785,000 539,734 Travel and Entertainment 6,000 6,000 2,405 Residential Property Owner Grants 1,425,000 1,425,000 1,321,819 Miscellaneous 20,000 20,000 137,415 11,047,500 11,047,500 10,006,966

Creative and Design Salaries and Wages 313,500 313,500 320,813 IMRF and FICA 59,500 59,500 55,727 Office Supplies and Equipment 20,000 20,000 9,491 Printing and Stationery 2,000 2,000 4,592 Repairs and Maintenance 5,000 5,000 8,933

74 VILLAGE OF ROSEMONT, ILLINOIS

General Fund

Schedule of Expenditures - Budget and Actual - Continued For the Year Ended December 31, 2016

Budget Original Final Actual

Creative and Design - Continued Communications $ 1,250 1,250 944 Schools, Seminars and Meetings 2,000 2,000 - Professional Services 97,500 97,500 92,450 Travel and Entertainment 500 500 - Miscellaneous 10,200 10,200 21,740 511,450 511,450 514,690

Public Works and Economic Development Salaries and Wages 1,955,500 1,955,500 1,803,876 IMRF and FICA 335,000 335,000 318,987 Contractual Services 25,000 25,000 - Park Maintenance 300,000 300,000 517,738 Engineering and Professional Services 775,000 775,000 616,698 Maintenance - Buildings and Grounds 100,000 100,000 126,277 Maintenance - Equipment 26,000 26,000 28,161 Maintenance - Streets and Sidewalks 100,000 100,000 98,713 Maintenance - Traffic Signals 95,000 95,000 106,543 Utilities 385,000 385,000 415,009 Rent 36,000 36,000 32,172 Gas and Oil for Vehicles 300,000 300,000 217,921 Uniforms 25,000 25,000 28,183 Communications 68,000 68,000 49,907 Other Supplies 733,000 733,000 605,289 Other Repairs and Maintenance 75,000 75,000 60,720 Property Taxes 100,000 100,000 47,435 Miscellaneous 12,000 12,000 7,014 5,445,500 5,445,500 5,080,643

Public Safety Salaries and Wages 11,810,000 11,810,000 11,755,797 Pension and FICA 530,000 530,000 2,923,751 Contractual Services 1,009,500 1,009,500 1,118,663 Supplies 290,500 290,500 267,493 Printing 10,000 10,000 7,986 Ammunition 100,000 100,000 2,989

75 VILLAGE OF ROSEMONT, ILLINOIS

General Fund

Schedule of Expenditures - Budget and Actual - Continued For the Year Ended December 31, 2016

Budget Original Final Actual

Public Safety - Continued Uniforms and Uniform Cleaning $ 186,000 186,000 169,731 Repairs and Maintenance 181,000 181,000 240,813 Dues and Subscriptions 55,000 55,000 44,398 Equipment Rental 7,200 7,200 8,429 Training 95,000 95,000 66,332 Communications 219,300 219,300 211,658 Utilities 18,500 18,500 15,397 Professional Services 163,000 163,000 150,588 Travel 25,000 25,000 19,869 Miscellaneous 25,000 25,000 25,019 14,725,000 14,725,000 17,028,913

Health and License Salaries and Wages 243,000 243,000 223,197 IMRF and FICA 41,500 41,500 38,621 Professional Services 2,500 2,500 45 Office Supplies and Expenditures 10,500 10,500 8,857 Miscellaneous 18,000 18,000 11,687 315,500 315,500 282,407

Housing and Social Services Salaries and Wages 770,250 770,250 717,258 IMRF and FICA 136,815 136,815 120,315 Social Services 317,500 317,500 305,014 Contractual Services 3,500 3,500 - Utilities 470,000 470,000 426,551 Rent 2,000 2,000 1,500 Maintenance and Repair 360,000 360,000 260,471 Communications 14,500 14,500 17,111 Supplies 142,500 142,500 121,709 Property Taxes 100,000 100,000 90,993 Professional Services 25,000 25,000 5,602 Miscellaneous 31,000 31,000 28,067 2,373,065 2,373,065 2,094,591

76 VILLAGE OF ROSEMONT, ILLINOIS

General Fund

Schedule of Expenditures - Budget and Actual - Continued For the Year Ended December 31, 2016

Budget Original Final Actual

Business Development Commission Salaries and Wages $ 100,000 100,000 99,526 IMRF and FICA 18,250 18,250 17,911 Communications 17,000 17,000 14,243 Supplies 4,500 4,500 3,041 Printing and Stationery 55,000 55,000 48,326 Public Relations 25,000 25,000 16,526 Miscellaneous 100,750 100,750 90,840 320,500 320,500 290,413

Culture and Recreation Salaries and Wages 188,000 188,000 195,560 IMRF and FICA 35,000 35,000 33,454 Contractual Services 72,000 72,000 81,991 Communications 5,200 5,200 6,796 Supplies 24,000 24,000 26,170 Social Services 14,000 14,000 11,037 Repairs and Maintenance 45,000 45,000 97,661 Miscellaneous 56,000 56,000 32,716 439,200 439,200 485,385

Building Department Salaries and Wages 219,500 219,500 205,078 IMRF and FICA 39,500 39,500 36,921 Professional Services 40,000 40,000 36,762 Communications 2,600 2,600 1,541 Supplies 19,500 19,500 2,876 321,100 321,100 283,178

Ballpark Salaries and Wages 478,000 478,000 494,880 IMRF and FICA 86,400 86,400 76,736 Utilities 218,500 218,500 177,837 Professional Services 105,000 105,000 59,052

77 VILLAGE OF ROSEMONT, ILLINOIS

General Fund

Schedule of Expenditures - Budget and Actual - Continued For the Year Ended December 31, 2016

Budget Original Final Actual

Ballpark - Continued Communications $ 16,500 16,500 16,279 Repairs and Maintenance 110,000 110,000 109,624 Miscellaneous 141,500 141,500 82,641 1,155,900 1,155,900 1,017,049

Capital Outlay Land and Buildings 7,769,505 7,769,505 4,180,343 Vehicles Public Works and Economic Development 75,000 75,000 121,211 Public Safety 268,198 268,198 125,172 Housing and Social Services 25,000 25,000 31,443 Furniture and Equipment General Government 10,000 10,000 42,615 Public Works and Economic Development 500,000 500,000 - Public Safety 315,182 315,182 - Housing and Social Services 30,000 30,000 60,545 Ballpark 60,000 60,000 - Infrastructure 2,672,000 2,672,000 1,066,503 11,724,885 11,724,885 5,627,832

Debt Service Principal Payment 4,500,000 4,500,000 4,500,000 Interest and Fiscal Charges 83,250 83,250 43,845 4,583,250 4,583,250 4,543,845

Total Expenditures 53,801,250 53,801,250 48,035,717

78 VILLAGE OF ROSEMONT, ILLINOIS

Nonmajor Governmental Funds

Combining Balance Sheet December 31, 2016

Special Debt Capital Revenue Service Projects Totals

ASSETS

Cash and Investments $ 470,182 1,419,998 3,004,874 4,895,054 Receivables - Net of Allowances Taxes 270,903 7,366,099 - 7,637,002 Accounts 51,341 - - 51,341 Due from Other Governments 694,801 - - 694,801 Due from Other Funds - 258,300 92,027 350,327

Total Assets 1,487,227 9,044,397 3,096,901 13,628,525

LIABILITIES

Accounts Payable 340,866 - 4,040,780 4,381,646 Accrued Interest Payable - - 177,071 177,071 Unearned Revenues - - 2,557,605 2,557,605 Due to Other Funds 536,428 318 92,027 628,773 Advances from Other Funds - - 14,519,301 14,519,301 Total Liabilities 877,294 318 21,386,784 22,264,396

DEFERRED INFLOWS OF RESOURCES

Property Taxes 270,903 7,366,099 - 7,637,002 Total Liabilities and Deferred Inflows of Resources 1,148,197 7,366,417 21,386,784 29,901,398

FUND BALANCES

Restricted 840,758 1,677,980 10,938 2,529,676 Unassigned (501,728) - (18,300,821) (18,802,549) Total Fund Balances 339,030 1,677,980 (18,289,883) (16,272,873)

Total Liabilities, Deferred Inflows of Resources and Fund Balances 1,487,227 9,044,397 3,096,901 13,628,525

79 VILLAGE OF ROSEMONT, ILLINOIS

Nonmajor Governmental Funds

Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2016

Special Debt Capital Revenue Service Projects Totals

Revenues Taxes $ 2,799,706 8,507,546 - 11,307,252 Licenses and Fees 460,913 - - 460,913 Intergovernmental Grant 1,064,792 - 861,356 1,926,148 Other 106,985 - - 106,985 Interest 2,447 21,360 3,280 27,087 Miscellaneous - - 47,315 47,315 Total Revenues 4,434,843 8,528,906 911,951 13,875,700

Expenditures Creative and Design 1,845,442 - - 1,845,442 Public Works and Economic Development 105,660 - 4,101,040 4,206,700 Public Safety 1,383,594 - - 1,383,594 Capital Outlay - - 9,909,126 9,909,126 Debt Service Principal - 27,505,000 - 27,505,000 Interest and Fiscal Charges - 13,374,007 - 13,374,007 Total Expenditures 3,334,696 40,879,007 14,010,166 58,223,869

Excess (Deficiency) of Revenues Over Expenditures 1,100,147 (32,350,101) (13,098,215) (44,348,169)

Other Financing Sources (Uses) Transfers In 2,320,790 31,052,684 5,030,711 38,404,185 Transfers Out (3,383,525) (92,269) (235,712) (3,711,506) Total Other Financing Sources (Uses) (1,062,735) 30,960,415 4,794,999 34,692,679

Net Change in Fund Balances 37,412 (1,389,686) (8,303,216) (9,655,490)

Fund Balances - Beginning 301,618 3,067,666 (9,986,667) (6,617,383)

Fund Balances - Ending 339,030 1,677,980 (18,289,883) (16,272,873)

80 VILLAGE OF ROSEMONT, ILLINOIS

Nonmajor Governmental - Special Revenue Funds

Combining Balance Sheet December 31, 2016

Emergency Motor 911 Fuel Tax

ASSETS

Cash and Investments $ 79,050 259,827 Receivables - Net of Allowances Taxes - - Accounts 51,341 - Due from Other Governments - 9,968

Total Assets 130,391 269,795

LIABILITIES

Accounts Payable 16,489 - Due to Other Funds - - Total Liabilities 16,489 -

DEFERRED INFLOWS OF RESOURCES

Property Taxes - - Total Liabilities and Deferred Inflows of Resources 16,489 -

FUND BALANCES

Restricted 113,902 269,795 Unassigned - - Total Funds Balances 113,902 269,795

Total Liabilities, Deferred Inflows of Resources and Fund Balances 130,391 269,795

81 Rosemont Special Tax Special Tax Visitor and Allocation Allocation Tourism Special Service Redevelopment Redevelopment Bureau Area #2 District #5 District #6 Totals

41,269 51,785 6,562 31,689 470,182

- 270,903 - - 270,903 - - - - 51,341 684,833 - - - 694,801

726,102 322,688 6,562 31,689 1,487,227

307,292 17,085 - - 340,866 - 536,428 - - 536,428 307,292 553,513 - - 877,294

- 270,903 - - 270,903

307,292 824,416 - - 1,148,197

418,810 - 6,562 31,689 840,758 - (501,728) - - (501,728) 418,810 (501,728) 6,562 31,689 339,030

726,102 322,688 6,562 31,689 1,487,227

82 VILLAGE OF ROSEMONT, ILLINOIS

Nonmajor Governmental - Special Revenue Funds

Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2016

Emergency Motor 911 Fuel Tax

Revenues Taxes $ - - Licenses and Fees 460,913 - Intergovernmental Grant - - Other 106,985 Interest 8 - Total Revenues 460,921 106,985

Expenditures Creative and Design - - Public Works and Econmic Development - - Public Safety 1,383,594 - Total Expenditures 1,383,594 -

Excess (Deficiency) of Revenues Over Expenditures (922,673) 106,985

Other Financing Sources (Uses) Transfers In 799,795 - Transfers Out - - Total Other Financing Sources (Uses) 799,795 -

Net Change in Fund Balances (122,878) 106,985

Fund Balances - Beginning 236,780 162,810

Fund Balances - Ending 113,902 269,795

83 Rosemont Special Tax Special Tax Visitor and Allocation Allocation Tourism Special Service Redevelopment Redevelopment Bureau Area #2 District #5 District #6 Totals

- 272,046 967,050 1,560,610 2,799,706 - - - - 460,913

1,064,792 - - - 1,064,792 - - - - 106,985 - - 1,360 1,079 2,447 1,064,792 272,046 968,410 1,561,689 4,434,843

1,845,442 - - - 1,845,442 - 105,660 - - 105,660 - - - - 1,383,594 1,845,442 105,660 - - 3,334,696

(780,650) 166,386 968,410 1,561,689 1,100,147

730,995 - 790,000 - 2,320,790 - - (1,853,525) (1,530,000) (3,383,525) 730,995 - (1,063,525) (1,530,000) (1,062,735)

(49,655) 166,386 (95,115) 31,689 37,412

468,465 (668,114) 101,677 - 301,618

418,810 (501,728) 6,562 31,689 339,030

84 VILLAGE OF ROSEMONT, ILLINOIS

Nonmajor Governmental - Debt Service Funds

Combining Balance Sheet December 31, 2016

Series Series Series Series Series Series 2007B 2008C 2010A 2010C 2011A 2011B

ASSETS

Cash and Investments $ - - - - - 9 Receivables - Net of Allowances Taxes 1,084,889 - - - - - Due from Other Funds 75,164 - - - - -

Total Assets 1,160,053 - - - - 9

LIABILITIES

Due to Other Funds ------

DEFERRED INFLOWS OF RESOURCES

Property Taxes 1,084,889 - - - - - Total Liabilities and Deferred Inflows of Resources 1,084,889 - - - - -

FUND BALANCES

Restricted 75,164 - - - - 9

Total Liabilities, Deferred Inflows of Resource and Fund Balances 1,160,053 - - - - 9

85 Series Series Series Series Series Series Series 2011C 2011D 2012A 2012B 2013B 2014A 2015A Totals

- 24 24 - - - 1,419,941 1,419,998

- - - - - 6,281,210 - 7,366,099 - - - - - 183,136 - 258,300

- 24 24 - - 6,464,346 1,419,941 9,044,397

------318 318

- - - - - 6,281,210 - 7,366,099

- - - - - 6,281,210 318 7,366,417

- 24 24 - - 183,136 1,419,623 1,677,980

- 24 24 - - 6,464,346 1,419,941 9,044,397

86 VILLAGE OF ROSEMONT, ILLINOIS

Nonmajor Governmental - Debt Service Funds

Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2016

Series Series Series Series Series Series 2007B 2008C 2010A 2010C 2011A 2011B

Revenues Taxes $ 1,101,920 1,026,721 - - - - Interest - - - - - 9 Total Revenues 1,101,920 1,026,721 - - - 9

Expenditures Debt Service Principal 930,000 975,000 3,460,000 2,665,000 - - Interest and Fiscal Charges 157,445 39,000 1,510,879 1,822,061 1,104,979 1,184,431 Total Expenditures 1,087,445 1,014,000 4,970,879 4,487,061 1,104,979 1,184,431

Excess (Deficiency) of Revenues Over Expenditures 14,475 12,721 (4,970,879) (4,487,061) (1,104,979) (1,184,422)

Other Financing Sources (Uses) Transfers In - - 4,970,879 4,487,044 1,104,979 1,184,422 Transfers Out - (92,269) - - - - Total Other Financing Sources (Uses) - (92,269) 4,970,879 4,487,044 1,104,979 1,184,422

Net Change in Fund Balances 14,475 (79,548) - (17) - -

Fund Balances - Beginning 60,689 79,548 - 17 - 9

Fund Balances - Ending 75,164 - - - - 9

87 Series Series Series Series Series Series Series 2011C 2011D 2012A 2012B 2013B 2014A 2015A Totals

- - - - - 6,378,905 - 8,507,546 - 24 24 - - - 21,303 21,360 - 24 24 - - 6,378,905 21,303 8,528,906

1,550,000 2,270,000 - 9,965,000 265,000 5,425,000 - 27,505,000 296,525 625,694 3,096,929 1,134,436 101,800 872,668 1,427,160 13,374,007 1,846,525 2,895,694 3,096,929 11,099,436 366,800 6,297,668 1,427,160 40,879,007

(1,846,525) (2,895,670) (3,096,905) (11,099,436) (366,800) 81,237 (1,405,857) (32,350,101)

1,846,525 2,895,678 3,096,922 11,099,435 366,800 - - 31,052,684 ------(92,269)

1,846,525 2,895,678 3,096,922 11,099,435 366,800 - - 30,960,415

- 8 17 (1) - 81,237 (1,405,857) (1,389,686)

- 16 7 1 - 101,899 2,825,480 3,067,666

- 24 24 - - 183,136 1,419,623 1,677,980

88 VILLAGE OF ROSEMONT, ILLINOIS

Nonmajor Governmental - Capital Projects Funds

Combining Balance Sheet December 31, 2016

Redevelopment Redevelopment Redevelopment District #3 District #4 District #5

ASSETS

Cash and Investments $ 172,176 23,262 4,988 Due from Other Funds - - -

Total Assets 172,176 23,262 4,988

LIABILITIES

Accounts Payable 1,383,626 160,362 250 Accrued Interest Payable - - - Unearned Revenues 112,663 - - Due to Other Funds - 92,027 - Advances from Other Funds - 4,648,387 - Total Liabilities 1,496,289 4,900,776 250

FUND BALANCES

Restricted - - 4,738 Unassigned (1,324,113) (4,877,514) - Total Fund Balances (1,324,113) (4,877,514) 4,738

Total Liabilities and Fund Balances 172,176 23,262 4,988

89 2016A and Redevelopment Redevelopment 2012A Bond B Bond Capital District #7 District #8 Project Project Grant Totals

40,196 40,424 - - 2,723,828 3,004,874 - - - 92,027 - 92,027

40,196 40,424 - 92,027 2,723,828 3,096,901

60,653 184,293 - 1,954,410 297,186 4,040,780 161,613 15,458 - - - 177,071 24,500 - - - 2,420,442 2,557,605 - - - - - 92,027 5,800,914 4,070,000 - - - 14,519,301 6,047,680 4,269,751 - 1,954,410 2,717,628 21,386,784

- - - - 6,200 10,938 (6,007,484) (4,229,327) - (1,862,383) - (18,300,821) (6,007,484) (4,229,327) - (1,862,383) 6,200 (18,289,883)

40,196 40,424 - 92,027 2,723,828 3,096,901

90 VILLAGE OF ROSEMONT, ILLINOIS

Nonmajor Governmental - Capital Projects Funds

Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended December 31, 2016

Redevelopment Redevelopment Redevelopment District #3 District #4 District #5

Revenues Intergovernmental - Grant $ 12,728 - - Interest - - - Miscellaneous 47,315 - - Total Revenues 60,043 - -

Expenditures Public Works and Economic Development 1,935,216 1,046,051 31,036 Capital Outlay 988,537 2,315,634 - Total Expenditures 2,923,753 3,361,685 31,036

Excess (Deficiency) of Revenues Over Expenditures (2,863,710) (3,361,685) (31,036)

Other Financing Sources (Uses) Transfers In 2,630,000 2,393,711 7,000 Transfers Out - - - Total Other Financing Sources (Uses) 2,630,000 2,393,711 7,000

Net Change in Fund Balances (233,710) (967,974) (24,036)

Fund Balances - Beginning (1,090,403) (3,909,540) 28,774

Fund Balances - Ending (1,324,113) (4,877,514) 4,738

91 2016A and Redevelopment Redevelopment 2012A Bond B Bond Capital District #7 District #8 Project Project Grant Totals

- - - - 848,628 861,356 - - 54 - 3,226 3,280 - - - - - 47,315 - - 54 - 851,854 911,951

257,359 674,156 - 63,019 94,203 4,101,040 495,995 3,555,171 - 1,799,364 754,425 9,909,126 753,354 4,229,327 - 1,862,383 848,628 14,010,166

(753,354) (4,229,327) 54 (1,862,383) 3,226 (13,098,215)

- - - - - 5,030,711 - - (235,712) - - (235,712) - - (235,712) - - 4,794,999

(753,354) (4,229,327) (235,658) (1,862,383) 3,226 (8,303,216)

(5,254,130) - 235,658 - 2,974 (9,986,667)

(6,007,484) (4,229,327) - (1,862,383) 6,200 (18,289,883)

92 VILLAGE OF ROSEMONT, ILLINOIS

Nonmajor Enterprise Funds

Combining Statement of Net Position December 31, 2016

Rosemont Waterworks Rosemont Health and Baseball and Sewerage Theatre Fitness Stadium Totals

ASSETS Current Assets Cash and Investments $ 158,946 478,643 46,865 - 684,454 Restricted Cash - 1,745,115 - - 1,745,115 Receivables - Net of Allowances Accounts 260,397 435,042 9,384 - 704,823 Prepaids/Inventories - - 9,600 - 9,600 Total Current Assets 419,343 2,658,800 65,849 - 3,143,992 Noncurrent Assets Capital Assets Nondepreciable Capital Assets 55,551 11,427,951 135,000 3,210,260 14,828,762 Depreciable Capital Assets 13,482,123 32,470,166 12,646,684 - 58,598,973 Accumulated Depreciation (7,198,756) (17,406,092) (7,434,875) - (32,039,723) Total Noncurrent Assets 6,338,918 26,492,025 5,346,809 3,210,260 41,388,012 Total Assets 6,758,261 29,150,825 5,412,658 3,210,260 44,532,004 DEFERRED OUTFLOWS OF RESOURCES Deferred Items - IMRF 104,863 173,541 104,460 - 382,864 Total Assets and Deferred Outflows of Resources 6,863,124 29,324,366 5,517,118 3,210,260 44,914,868 LIABILITIES Current Liabilities Accounts Payable 428,667 199,870 69,725 - 698,262 Advance Deposits 15,741 2,155,837 - - 2,171,578 Due to Other Funds - 107,198 - - 107,198 Unearned Revenue - 60,000 121,964 - 181,964 Compensated Absences 3,188 7,759 5,090 - 16,037 Total Current Liabilities 447,596 2,530,664 196,779 - 3,175,039 Noncurrent Liabilities Compensated Absences 12,754 31,035 20,360 - 64,149 Net Pension Liability - IMRF 127,231 210,558 126,741 - 464,530 Net Other Post-Employment Benefit Payable 699,275 1,146,376 523,928 - 2,369,579 Total Noncurrent Liabilities 839,260 1,387,969 671,029 - 2,898,258 Total Liabilities 1,286,856 3,918,633 867,808 - 6,073,297 DEFERRED OUTFLOWS OF RESOURCES Deferred Items - IMRF 23,001 38,065 22,913 - 83,979 Total Liabilities and Deferred 1,309,857 3,956,698 890,721 - 6,157,276 Inflows of Resources NET POSITION Investment in Capital Assets 6,338,918 26,492,025 5,346,809 3,210,260 41,388,012 Unrestricted (Deficit) (785,651) (1,124,357) (720,412) - (2,630,420) Total Net Position 5,553,267 25,367,668 4,626,397 3,210,260 38,757,592

93 VILLAGE OF ROSEMONT, ILLINOIS

Nonmajor Enterprise Funds

Combining Statement of Revenues, Expenses and Changes in Net Position For the Year Ended December 31, 2016

Rosemont Waterworks Rosemont Health and Baseball and Sewerage Theatre Fitness Stadium Totals

Operating Revenues Charges for Services $ 3,886,038 5,939,725 1,376,218 - 11,201,981 Miscellaneous - - 46,957 - 46,957 Total Operating Revenues 3,886,038 5,939,725 1,423,175 - 11,248,938

Operating Expenses Cost of Goods Sold 2,650,898 - 46,218 - 2,697,116 Operating Personnel, Payroll Taxes and Benefits 663,309 1,561,402 1,032,245 - 3,256,956 Other Direct Expenses 349,244 3,005,352 586,140 - 3,940,736 General and Administrative 113,191 413,532 69,131 - 595,854 Depreciation 323,138 811,440 412,438 - 1,547,016 Total Operating Expenses 4,099,780 5,791,726 2,146,172 - 12,037,678

Income (Loss) Before Transfers and Capital Contributions (213,742) 147,999 (722,997) - (788,740)

Transfers In - - 203,550 - 203,550 Transfers Out (316,170) (1,053,824) - - (1,369,994) Capital Contributions - - - 3,210,260 3,210,260 (316,170) (1,053,824) 203,550 3,210,260 2,043,816

Change in Net Position (529,912) (905,825) (519,447) 3,210,260 1,255,076

Net Position - Beginning 6,083,179 26,273,493 5,145,844 - 37,502,516

Net Position - Ending 5,553,267 25,367,668 4,626,397 3,210,260 38,757,592

94 VILLAGE OF ROSEMONT, ILLINOIS

Nonmajor Enterprise Funds

Combining Statement of Cash Flows For the Year Ended December 31, 2016

Rosemont Waterworks Rosemont Health and Baseball and Sewerage Theatre Fitness Stadium Totals

Cash Flows from Operating Activities Receipts from Customers and Users $ 3,600,729 5,911,831 1,421,018 - 10,933,578 Receipts from Interfund Services 337,774 - - - 337,774 Payments to Employees (413,751) (1,128,677) (861,610) - (2,404,038) Payments to Suppliers (3,134,373) (3,822,273) (694,634) - (7,651,280) Payments for Interfund Services - (32,211) (10,321) (42,532) 390,379 928,670 (145,547) - 1,173,502 Cash Flows from Noncapital Financing Activities Transfers In - - 203,550 - 203,550 Transfers Out (316,170) (1,053,824) - - (1,369,994) Interfund Loans and Repayments, Net - 207,066 - - 207,066 (316,170) (846,758) 203,550 - (959,378) Cash Flows from Capital and Related Financing Activities Purchase of Capital Assets - - (73,924) - (73,924)

Net Change in Cash 74,209 81,912 (15,921) - 140,200

Cash - Beginning 84,737 396,731 62,786 - 544,254

Cash - Ending 158,946 478,643 46,865 - 684,454

Reconciliation of Operating Loss to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) (213,742) 147,999 (722,997) - (788,740) Adjustments to Reconcile Operating Loss to Net Cash Provided by (Used in) Operating Activities Depreciation and Amortization 323,138 811,440 412,438 - 1,547,016 Changes in Assets and Liabilities: Accounts Receivable 53,867 27,716 6,563 - 88,146 Restricted Cash - 4,390 - - 4,390 Prepaids/Inventories - - (3,857) - (3,857) Unearned Revenue - (60,000) (8,720) - (68,720) Accounts Payable 24,329 (360,518) 391 - (335,798) Compensated Absences 1,859 2,310 2,573 - 6,742 Advance Deposits (1,402) - - - (1,402) Deferred Items - IMRF (81,862) (135,476) (81,547) - (298,885) Net Pension Liability - IMRF 127,231 210,558 126,741 - 464,530 Net Other Post-Employment Benefit Payable 156,961 280,251 122,868 - 560,080

Net Cash Provided (used) by Operating Activities 390,379 928,670 (145,547) - 1,173,502

Noncash Activity Capital Contributions - - - 3,210,260 3,210,260

95 SUPPLEMENTAL SCHEDULES VILLAGE OF ROSEMONT, ILLINOIS

Long-Term Debt Requirements

General Obligation Bonds of 2007B December 31, 2016

Date of Issue December 1, 2007 Date of Maturity December 1, 2018 Authorized Issue $8,265,000 Denomination of Bonds $5,000 Interest Rates 4.84% to 5.43% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Amalgamated Bank of Chicago

CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS

Fiscal Requirements Interest Due on Year Principal Interest Totals Jun. 1 Amount Dec. 1 Amount

2017 $ 980,000 107,318 1,087,318 2017 53,659 2017 53,659 2018 1,000,000 54,300 1,054,300 2018 27,150 2018 27,150

1,980,000 161,618 2,141,618 80,809 80,809

96 VILLAGE OF ROSEMONT, ILLINOIS

Long-Term Debt Requirements

General Obligation Refunding Bonds of 2010A December 31, 2016

Date of Issue March 16, 2010 Date of Maturity December 1, 2035 Authorized Issue $37,450,000 Denomination of Bonds $5,000 Interest Rates 2.73% to 6.00% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Amalgamated Bank of Chicago

CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS

Fiscal Requirements Interest Due on Year Principal Interest Totals Jun. 1 Amount Dec. 1 Amount

2017 $ 3,590,000 1,381,820 4,971,820 2017 690,910 2017 690,910 2018 3,735,000 1,233,552 4,968,552 2018 616,776 2018 616,776 2019 3,900,000 1,068,840 4,968,840 2019 534,420 2019 534,420 2020 4,080,000 891,000 4,971,000 2020 445,500 2020 445,500 2021 540,000 698,832 1,238,832 2021 349,416 2021 349,416 2022 565,000 672,506 1,237,506 2022 336,253 2022 336,253 2023 590,000 644,256 1,234,256 2023 322,128 2023 322,128 2024 625,000 614,018 1,239,018 2024 307,009 2024 307,009 2025 655,000 581,206 1,236,206 2025 290,603 2025 290,603 2026 690,000 546,000 1,236,000 2026 273,000 2026 273,000 2027 730,000 504,600 1,234,600 2027 252,300 2027 252,300 2028 775,000 460,800 1,235,800 2028 230,400 2028 230,400 2029 825,000 414,300 1,239,300 2029 207,150 2029 207,150 2030 870,000 364,800 1,234,800 2030 182,400 2030 182,400 2031 925,000 312,600 1,237,600 2031 156,300 2031 156,300 2032 980,000 257,100 1,237,100 2032 128,550 2032 128,550 2033 1,040,000 198,300 1,238,300 2033 99,150 2033 99,150 2034 1,100,000 135,900 1,235,900 2034 67,950 2034 67,950 2035 1,165,000 69,900 1,234,900 2035 34,950 2035 34,950

27,380,000 11,050,330 38,430,330 5,525,165 5,525,165

97 VILLAGE OF ROSEMONT, ILLINOIS

Long-Term Debt Requirements

General Obligation Refunding Bonds of 2010B December 31, 2016

Date of Issue November 18, 2010 Date of Maturity December 1, 2030 Authorized Issue $30,525,000 Denomination of Bonds $5,000 Interest Rates 3.89% to 6.60% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Bank of New York Mellon, New York NY

CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS

Fiscal Requirements Interest Due on Year Principal Interest Totals Jun. 1 Amount Dec. 1 Amount

2017 $ 1,465,000 1,689,488 3,154,488 2017 844,744 2017 844,744 2018 1,530,000 1,626,640 3,156,640 2018 813,320 2018 813,320 2019 1,600,000 1,554,424 3,154,424 2019 777,212 2019 777,212 2020 1,675,000 1,476,504 3,151,504 2020 738,252 2020 738,252 2021 1,760,000 1,392,418 3,152,418 2021 696,209 2021 696,209 2022 1,850,000 1,304,418 3,154,418 2022 652,209 2022 652,209 2023 1,945,000 1,207,294 3,152,294 2023 603,647 2023 603,647 2024 2,050,000 1,102,750 3,152,750 2024 551,375 2024 551,375 2025 2,165,000 987,438 3,152,438 2025 493,719 2025 493,719 2026 2,290,000 862,950 3,152,950 2026 431,475 2026 431,475 2027 2,445,000 711,810 3,156,810 2027 355,905 2027 355,905 2028 2,605,000 550,440 3,155,440 2028 275,220 2028 275,220 2029 2,775,000 378,510 3,153,510 2029 189,255 2029 189,255 2030 2,960,000 195,360 3,155,360 2030 97,680 2030 97,680

29,115,000 15,040,444 44,155,444 7,520,222 7,520,222

98 VILLAGE OF ROSEMONT, ILLINOIS

Long-Term Debt Requirements

General Obligation Bonds of 2010C December 31, 2016

Date of Issue November 18, 2010 Date of Maturity December 1, 2035 Authorized Issue $32,635,000 Denomination of Bonds $5,000 Interest Rates 3.89% to 6.75% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Bank of New York Mellon, New York NY

CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS

Fiscal Requirements Interest Due on Year Principal Interest Totals Jun. 1 Amount Dec. 1 Amount

2017 $ 2,765,000 1,718,392 4,483,392 2017 859,196 2017 859,196 2018 2,885,000 1,599,774 4,484,774 2018 799,887 2018 799,887 2019 3,025,000 1,463,602 4,488,602 2019 731,801 2019 731,801 2020 3,165,000 1,316,284 4,481,284 2020 658,142 2020 658,142 2021 780,000 1,157,402 1,937,402 2021 578,701 2021 578,701 2022 820,000 1,118,402 1,938,402 2022 559,201 2022 559,201 2023 865,000 1,075,352 1,940,352 2023 537,676 2023 537,676 2024 910,000 1,028,858 1,938,858 2024 514,429 2024 514,429 2025 960,000 977,670 1,937,670 2025 488,835 2025 488,835 2026 1,015,000 922,470 1,937,470 2026 461,235 2026 461,235 2027 1,085,000 855,480 1,940,480 2027 427,740 2027 427,740 2028 1,155,000 783,870 1,938,870 2028 391,935 2028 391,935 2029 1,230,000 707,640 1,937,640 2029 353,820 2029 353,820 2030 1,310,000 626,460 1,936,460 2030 313,230 2030 313,230 2031 1,400,000 540,000 1,940,000 2031 270,000 2031 270,000 2032 1,490,000 445,500 1,935,500 2032 222,750 2032 222,750 2033 1,595,000 344,926 1,939,926 2033 172,463 2033 172,463 2034 1,700,000 237,262 1,937,262 2034 118,631 2034 118,631 2035 1,815,000 122,512 1,937,512 2035 61,256 2035 61,256

29,970,000 17,041,856 47,011,856 8,520,928 8,520,928

99 VILLAGE OF ROSEMONT, ILLINOIS

Long-Term Debt Requirements

General Obligation Bonds of 2011A December 31, 2016

Date of Issue May 26, 2011 Date of Maturity December 1, 2035 Authorized Issue $20,325,000 Denomination of Bonds $5,000 Interest Rates 5.125% to 5.600% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Bank of New York Mellon, New York NY

CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS

Fiscal Requirements Interest Due on Year Principal Interest Totals Jun. 1 Amount Dec. 1 Amount

2017 $- 1,104,978 1,104,978 2017 552,489 2017 552,489 2018 - 1,104,978 1,104,978 2018 552,489 2018 552,489 2019 - 1,104,978 1,104,978 2019 552,489 2019 552,489 2020 - 1,104,978 1,104,978 2020 552,489 2020 552,489 2021 - 1,104,978 1,104,978 2021 552,489 2021 552,489 2022 - 1,104,978 1,104,978 2022 552,489 2022 552,489 2023 - 1,104,978 1,104,978 2023 552,489 2023 552,489 2024 - 1,104,978 1,104,978 2024 552,489 2024 552,489 2025 - 1,104,978 1,104,978 2025 552,489 2025 552,489 2026 - 1,104,978 1,104,978 2026 552,489 2026 552,489 2027 - 1,104,978 1,104,978 2027 552,489 2027 552,489 2028 - 1,104,978 1,104,978 2028 552,489 2028 552,489 2029 - 1,104,978 1,104,978 2029 552,489 2029 552,489 2030 2,755,000 1,104,978 3,859,978 2030 552,489 2030 552,489 2031 3,150,000 963,786 4,113,786 2031 481,893 2031 481,893 2032 3,325,000 794,472 4,119,472 2032 397,236 2032 397,236 2033 3,500,000 611,598 4,111,598 2033 305,799 2033 305,799 2034 3,695,000 423,472 4,118,472 2034 211,736 2034 211,736 2035 3,900,000 218,400 4,118,400 2035 109,200 2035 109,200

20,325,000 18,481,420 38,806,420 9,240,710 9,240,710

100 VILLAGE OF ROSEMONT, ILLINOIS

Long-Term Debt Requirements

General Obligation Bonds of 2011B December 31, 2016

Date of Issue May 26, 2011 Date of Maturity December 1, 2030 Authorized Issue $24,795,000 Denomination of Bonds $5,000 Interest Rates 2.375% to 6.125% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Bank of New York Mellon, New York NY

CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS

Fiscal Requirements Interest Due on Year Principal Interest Totals Jun. 1 Amount Dec. 1 Amount

2017 $- 1,184,432 1,184,432 2017 592,216 2017 592,216 2018 - 1,184,432 1,184,432 2018 592,216 2018 592,216 2019 - 1,184,432 1,184,432 2019 592,216 2019 592,216 2020 - 1,184,432 1,184,432 2020 592,216 2020 592,216 2021 1,825,000 1,184,432 3,009,432 2021 592,216 2021 592,216 2022 1,920,000 1,093,182 3,013,182 2022 546,591 2022 546,591 2023 2,020,000 992,382 3,012,382 2023 496,191 2023 496,191 2024 2,125,000 883,806 3,008,806 2024 441,903 2024 441,903 2025 2,245,000 766,932 3,011,932 2025 383,466 2025 383,466 2026 2,375,000 640,650 3,015,650 2026 320,325 2026 320,325 2027 2,505,000 504,088 3,009,088 2027 252,044 2027 252,044 2028 2,660,000 350,656 3,010,656 2028 175,328 2028 175,328 2029 2,820,000 187,732 3,007,732 2029 93,866 2029 93,866 2030 245,000 15,006 260,006 2030 7,503 2030 7,503

20,740,000 11,356,594 32,096,594 5,678,297 5,678,297

101 VILLAGE OF ROSEMONT, ILLINOIS

Long-Term Debt Requirements

General Obligation Refunding Bonds of 2011C December 31, 2016

Date of Issue December 15, 2011 Date of Maturity December 1, 2020 Authorized Issue $14,530,000 Denomination of Bonds $5,000 Interest Rates 1.00% to 4.00% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Bank of New York Mellon, New York NY

CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS

Fiscal Requirements Interest Due on Year Principal Interest Totals Jun. 1 Amount Dec. 1 Amount

2017 $ 1,675,000 257,776 1,932,776 2017 128,888 2017 128,888 2018 1,770,000 207,524 1,977,524 2018 103,762 2018 103,762 2019 1,840,000 150,000 1,990,000 2019 75,000 2019 75,000 2020 2,025,000 81,000 2,106,000 2020 40,500 2020 40,500

7,310,000 696,300 8,006,300 348,150 348,150

102 VILLAGE OF ROSEMONT, ILLINOIS

Long-Term Debt Requirements

General Obligation Bonds of 2011D December 31, 2016

Date of Issue December 15, 2011 Date of Maturity December 1, 2022 Authorized Issue $22,875,000 Denomination of Bonds $5,000 Interest Rates 1.75% to 4.25% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Bank of New York Mellon, New York NY

CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS

Fiscal Requirements Interest Due on Year Principal Interest Totals Jun. 1 Amount Dec. 1 Amount

2017 $ 2,345,000 568,944 2,913,944 2017 284,472 2017 284,472 2018 2,435,000 498,594 2,933,594 2018 249,297 2018 249,297 2019 2,530,000 419,456 2,949,456 2019 209,728 2019 209,728 2020 2,650,000 324,582 2,974,582 2020 162,291 2020 162,291 2021 2,955,000 218,582 3,173,582 2021 109,291 2021 109,291 2022 2,275,000 96,688 2,371,688 2022 48,344 2022 48,344

15,190,000 2,126,846 17,316,846 1,063,423 1,063,423

103 VILLAGE OF ROSEMONT, ILLINOIS

Long-Term Debt Requirements

General Obligation Bonds of 2012A December 31, 2016

Date of Issue April 3, 2012 Date of Maturity December 1, 2035 Authorized Issue $59,390,000 Denomination of Bonds $5,000 Interest Rates 4.35% to 5.50% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Bank of New York Mellon, New York NY

CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS

Fiscal Requirements Interest Due on Year Principal Interest Totals Jun. 1 Amount Dec. 1 Amount

2017 $- 3,096,928 3,096,928 2017 1,548,464 2017 1,548,464 2018 - 3,096,928 3,096,928 2018 1,548,464 2018 1,548,464 2019 - 3,096,928 3,096,928 2019 1,548,464 2019 1,548,464 2020 - 3,096,928 3,096,928 2020 1,548,464 2020 1,548,464 2021 - 3,096,928 3,096,928 2021 1,548,464 2021 1,548,464 2022 - 3,096,928 3,096,928 2022 1,548,464 2022 1,548,464 2023 2,700,000 3,096,928 5,796,928 2023 1,548,464 2023 1,548,464 2024 3,555,000 2,979,478 6,534,478 2024 1,489,739 2024 1,489,739 2025 3,715,000 2,817,726 6,532,726 2025 1,408,863 2025 1,408,863 2026 3,890,000 2,641,264 6,531,264 2026 1,320,632 2026 1,320,632 2027 4,080,000 2,456,488 6,536,488 2027 1,228,244 2027 1,228,244 2028 4,280,000 2,256,568 6,536,568 2028 1,128,284 2028 1,128,284 2029 4,510,000 2,026,518 6,536,518 2029 1,013,259 2029 1,013,259 2030 4,750,000 1,784,106 6,534,106 2030 892,053 2030 892,053 2031 5,005,000 1,528,794 6,533,794 2031 764,397 2031 764,397 2032 5,275,000 1,259,776 6,534,776 2032 629,888 2032 629,888 2033 5,565,000 969,650 6,534,650 2033 484,825 2033 484,825 2034 5,870,000 663,574 6,533,574 2034 331,787 2034 331,787 2035 6,195,000 340,726 6,535,726 2035 170,363 2035 170,363

59,390,000 43,403,164 102,793,164 21,701,582 21,701,582

104 VILLAGE OF ROSEMONT, ILLINOIS

Long-Term Debt Requirements

General Obligation Bonds of 2012B December 31, 2016

Date of Issue October 2, 2012 Date of Maturity December 1, 2019 Authorized Issue $45,240,000 Denomination of Bonds $5,000 Interest Rates 1.454% to 3.021% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Bank of New York Mellon, New York NY

CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS

Fiscal Requirements Interest Due on Year Principal Interest Totals Jun. 1 Amount Dec. 1 Amount

2017 $ 10,175,000 921,284 11,096,284 2017 460,642 2017 460,642 2018 11,545,000 678,202 12,223,202 2018 339,101 2018 339,101 2019 11,860,000 358,290 12,218,290 2019 179,145 2019 179,145

33,580,000 1,957,776 35,537,776 978,888 978,888

105 VILLAGE OF ROSEMONT, ILLINOIS

Long-Term Debt Requirements

General Obligation Refunding Bonds of 2013B December 31, 2016

Date of Issue October 23, 2013 Date of Maturity December 1, 2023 Authorized Issue $3,485,000 Denomination of Bonds $5,000 Interest Rates 2.00% to 4.00% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Bank of New York Mellon, New York NY

CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS

Fiscal Requirements Interest Due on Year Principal Interest Totals Jun. 1 Amount Dec. 1 Amount

2017 $ 355,000 93,850 448,850 2017 46,925 2017 46,925 2018 345,000 81,426 426,426 2018 40,713 2018 40,713 2019 435,000 69,350 504,350 2019 34,675 2019 34,675 2020 425,000 54,124 479,124 2020 27,062 2020 27,062 2021 515,000 39,250 554,250 2021 19,625 2021 19,625 2022 300,000 23,800 323,800 2022 11,900 2022 11,900 2023 295,000 11,800 306,800 2023 5,900 2023 5,900

2,670,000 373,600 3,043,600 186,800 186,800

106 VILLAGE OF ROSEMONT, ILLINOIS

Long-Term Debt Requirements

General Obligation Taxable Refunding Bonds of 2014A December 31, 2016

Date of Issue March 11, 2014 Date of Maturity December 1, 2021 Authorized Issue $37,615,000 Denomination of Bonds $5,000 Interest Rates 0.50% to 3.50% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Bank of New York Mellon, New York NY

CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS

Fiscal Requirements Interest Due on Year Principal Interest Totals Jun. 1 Amount Dec. 1 Amount

2017 $ 5,490,000 807,026 6,297,026 2017 403,513 2017 403,513 2018 5,615,000 712,048 6,327,048 2018 356,024 2018 356,024 2019 6,800,000 587,956 7,387,956 2019 293,978 2019 293,978 2020 6,980,000 400,278 7,380,278 2020 200,139 2020 200,139 2021 4,975,000 174,124 5,149,124 2021 87,062 2021 87,062

29,860,000 2,681,432 32,541,432 1,340,716 1,340,716

107 VILLAGE OF ROSEMONT, ILLINOIS

Long-Term Debt Requirements

General Obligation Taxable Bonds of 2015A December 31, 2016

Date of Issue January 27, 2015 Date of Maturity December 1, 2028 Authorized Issue $37,595,000 Denomination of Bonds $5,000 Interest Rates 3.364% to 4.114% Interest Dates June 1 and December 1 Principal Maturity Date December 1 Payable at Amalgamated Bank of Chicago

CURRENT AND LONG-TERM PRINCIPAL AND INTEREST REQUIREMENTS

Fiscal Requirements Interest Due on Year Principal Interest Totals Jun. 1 Amount Dec. 1 Amount

2017 $- 1,427,161 1,427,161 2017 713,580 2017 713,581 2018 - 1,427,161 1,427,161 2018 713,580 2018 713,581 2019 - 1,427,161 1,427,161 2019 713,580 2019 713,581 2020 - 1,427,161 1,427,161 2020 713,580 2020 713,581 2021 - 1,427,161 1,427,161 2021 713,580 2021 713,581 2022 4,815,000 1,427,160 6,242,160 2022 713,580 2022 713,580 2023 4,980,000 1,265,184 6,245,184 2023 632,592 2023 632,592 2024 5,155,000 1,090,188 6,245,188 2024 545,094 2024 545,094 2025 5,345,000 898,730 6,243,730 2025 449,365 2025 449,365 2026 5,545,000 694,872 6,239,872 2026 347,436 2026 347,436 2027 5,760,000 477,840 6,237,840 2027 238,920 2027 238,920 2028 5,995,000 246,634 6,241,634 2028 123,317 2028 123,317

37,595,000 13,236,413 50,831,413 6,618,204 6,618,209

108 STATISTICAL SECTION (Unaudited)

This part of the 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 Village’s overall financial health.

Financial Trends

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

Revenue Capacity

These schedules contain information to help the reader assess the Village’s most significant local revenue sources.

Debt Capacity

These schedules present information to help the reader assess the affordability of the Village’s current levels of outstanding debt and the Village’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 which the Village’s financial activities take place.

Operating Information

These schedules contain service and infrastructure data to help the reader understand how the information in the Village’s financial report relates to the services the Village provides and the activities it performs. VILLAGE OF ROSEMONT, ILLINOIS

Net Position by Component - Last Ten Fiscal Years* December 31, 2016 (Unaudited)

2007 2008 2009 2010

Governmental Activities Net Investment in Capital Assets $ 96,749,571 94,913,122 102,223,984 100,682,802 Restricted 11,802,962 5,975,696 3,236,763 25,910,582 Unrestricted (Deficit) (135,965,473) (149,785,677) (156,699,735) (175,447,350)

Total Governmental Activities Net Position (27,412,940) (48,896,859) (51,238,988) (48,853,966)

Business-Type Activities Net Investment in Capital Assets 201,799,919 239,624,996 232,857,770 222,123,786 Unrestricted (Deficit) (26,488,918) (52,159,741) (39,008,534) (22,269,905)

Total Business-Type Activities Net Position 175,311,001 187,465,255 193,849,236 199,853,881

Primary Government Net Investment in Capital Assets 298,549,490 334,538,118 335,081,754 322,806,588 Restricted 11,802,962 5,975,696 3,236,763 25,910,582 Unrestricted (Deficit) (162,454,391) (201,945,418) (195,708,269) (197,717,255)

Total Primary Government Net Position 147,898,061 138,568,396 142,610,248 150,999,915

* Accrual Basis of Accounting

Data Source: Audited Financial Statements

109 2011 2012 2013 2014 2015 2016

99,560,340 96,801,194 107,547,196 107,148,043 121,799,341 130,142,491 70,611,491 39,939,439 13,349,975 1,736,599 5,039,493 2,741,718 (236,971,659) (268,379,022) (263,193,105) (282,034,464) (275,153,578) (265,149,001)

(66,799,828) (131,638,389) (142,295,934) (173,149,822) (148,314,744) (132,264,792)

237,413,844 255,894,871 255,983,670 255,746,055 252,216,637 249,852,498 (16,476,632) (13,295,963) (12,153,516) (17,299,021) (19,883,580) (22,270,228)

220,937,212 242,598,908 243,830,154 238,447,034 232,333,057 227,582,270

336,974,184 352,696,065 363,530,866 362,894,098 374,015,978 379,994,989 70,611,491 39,939,439 13,349,975 1,736,599 5,039,493 2,741,718 (253,448,291) (281,674,985) (275,346,621) (299,333,485) (295,037,158) (287,419,229)

154,137,384 110,960,519 101,534,220 65,297,212 84,018,313 95,317,478

110 VILLAGE OF ROSEMONT, ILLINOIS

Changes in Net Position - Last Ten Fiscal Years* December 31, 2016 (Unaudited)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Expenses Governmental Activities General Government, Executive and $ 16,510,503 16,393,418 16,565,306 16,976,778 14,090,456 15,010,510 14,139,126 19,226,996 26,539,984 18,368,340 Legislative Creative and Design ------2,645,444 1,923,553 2,360,132 Public Works and Economic Development 13,936,025 13,323,944 10,597,310 12,259,350 24,488,858 57,988,215 42,340,953 26,021,142 19,053,853 21,941,011 Public Safety 18,740,812 19,349,821 18,196,851 17,284,224 17,444,557 17,808,939 18,477,218 19,328,590 54,957,453 21,042,885 Health and License 215,409 243,901 294,682 333,959 227,127 190,425 181,744 268,483 250,265 282,407 Housing and Social Services 2,363,472 2,292,628 2,825,291 2,414,870 2,374,630 2,426,705 2,478,373 2,507,399 2,634,387 2,433,327 Business Development Commission 230,714 183,882 232,451 217,181 212,286 242,148 277,183 270,813 272,343 290,413 Culture and Recreation 240,040 284,874 374,273 472,613 546,101 779,320 949,818 1,076,389 1,088,386 795,491 Building Department - - - - 219,640 199,966 231,518 273,592 294,564 288,951 Ballpark - - - - 181,422 514,974 855,503 1,047,229 987,604 1,426,548 Interest on Long-Term Debt 12,404,882 12,226,844 11,504,597 11,710,504 15,069,822 19,000,703 18,977,174 15,721,696 15,721,080 14,124,990 Total Governmental Activities Expenses 64,641,857 64,299,312 60,590,761 61,669,479 74,854,899 114,161,905 98,908,610 88,387,773 123,723,472 83,354,495

Business-Type Activities Allstate Arena 18,062,008 17,835,845 18,086,355 18,911,296 18,710,917 18,518,291 16,345,468 17,896,902 18,360,269 16,869,681 Donald E. Stephens Convention Center 20,666,164 19,219,838 18,224,970 17,969,791 17,508,613 17,953,199 17,640,335 18,486,005 17,805,228 17,549,772 Commercial Properties 3,906,794 4,029,557 2,813,424 2,630,126 2,856,736 2,677,560 2,527,285 2,833,874 2,602,359 3,250,139 Rosemont Theatre 8,586,627 7,573,041 6,660,468 5,493,972 5,671,388 6,469,187 5,561,309 4,923,944 5,750,992 5,791,726 Entertainment District 294,777 1,265,314 1,316,223 1,450,956 1,486,313 4,612,412 5,920,048 7,289,227 8,064,504 8,339,713 Waterworks and Sewerage 1,538,886 1,701,492 1,725,097 1,852,161 1,972,931 2,431,568 2,803,243 3,632,740 4,032,708 4,099,780 Village Gift Shop 59,710 126,284 116,108 64,937 129,363 - - - - - Rosemont Health and Fitness Center 1,916,818 2,082,521 2,347,119 2,164,706 2,167,254 2,068,704 1,922,869 2,050,584 2,129,080 2,146,172 Total Business-Type Activities Expenses 55,031,784 53,833,892 51,289,764 50,537,945 50,503,515 54,730,921 52,720,557 57,113,276 58,745,140 58,046,983

Total Primary Government Expenses 119,673,641 118,133,204 111,880,525 112,207,424 125,358,414 168,892,826 151,629,167 145,501,049 182,468,612 141,401,478

Program Revenues Governmental Activities Charges for Services Executive and Legislative and General Gov't ------319,616 236,443 390,133 Public Works and Economic Development 599,731 168,470 230,563 224,251 206,935 405,754 765,868 - - - Creative and Design ------Public Safety 2,044,802 2,393,552 2,902,162 2,748,488 2,926,593 3,155,691 2,924,683 2,929,268 3,048,741 2,269,384 Health and License 347,905 324,258 176,099 308,982 410,869 374,004 401,640 387,456 396,832 411,678 Housing and Social Services 2,768,110 2,420,559 2,402,902 2,604,159 2,823,392 2,864,669 2,931,540 2,961,885 2,837,933 2,761,424 Business Development Commission 60,980 87,860 62,390 73,230 143,200 123,660 144,945 148,007 109,195 141,570 Building Department ------546,943 464,211 390,626 Ballpark - - - - 45,861 91,838 636,391 716,465 438,621 609,133 Operating Grants/Contributions 182,438 497,569 90,784 174,515 167,017 505,420 351,071 1,008,425 1,841,323 2,081,523 Capital Grants/Contributions - - - 500,000 27,159 3,072 - - - - Total Governmental Activities Program Revenues 6,003,966 5,892,268 5,864,900 6,633,625 6,751,026 7,524,108 8,156,138 9,018,065 9,373,299 9,055,471

111 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Business-Type Activities Charges for Services Allstate Arena $ 19,335,153 19,770,214 18,677,317 19,154,252 19,615,682 20,270,707 16,361,803 20,914,366 20,995,309 19,084,569 Donald E. Stephens Convention Center 18,271,386 17,521,731 12,310,923 14,980,622 12,512,231 14,053,999 14,115,396 18,220,388 15,902,373 16,495,042 Commercial Properties 5,010,679 5,206,849 3,650,627 3,241,664 3,283,796 3,298,396 3,278,955 3,297,575 3,440,327 3,627,239 Rosemont Theatre 4,206,736 3,530,902 4,748,635 4,030,537 4,070,365 5,634,110 4,353,303 3,776,918 4,221,532 5,939,725 Entertainment District 163,332 226,412 302,964 173,750 175,000 1,590,501 4,676,901 5,462,475 5,856,432 5,128,113 Waterworks and Sewerage 1,788,969 1,927,986 1,939,403 2,087,381 2,086,952 2,789,114 3,162,868 3,304,047 3,844,121 3,886,038 Village Gift Shop 15,405 9,491 4,670 294 7,098 - - - - - Rosemont Health and Fitness Center 1,136,551 1,234,782 1,273,127 1,298,848 1,269,307 1,350,917 1,402,368 1,450,654 1,410,844 1,376,218 Operating Grants and Contributions 643,338 685,532 669,347 553,107 588,893 704,371 3,096,179 3,999,217 3,165,078 205,787 Capital Grants and Contributions - - - 79,243 - - 7,564,349 3,526,146 7,477,074 6,571,792 Total Business-Type Activities Program Revenues 50,571,549 50,113,899 43,577,013 45,599,698 43,609,324 49,692,115 58,012,122 63,951,786 66,313,090 62,314,523

Total Primary Government Program Revenues 56,575,515 56,006,167 49,441,913 52,233,323 50,360,350 57,216,223 66,168,260 72,969,851 75,686,389 71,369,994

Net (Expense) Revenue Governmental Activities (58,637,891) (58,407,044) (54,725,861) (55,035,854) (68,103,873) (106,637,797) (90,752,472) (79,369,708) (114,350,173) (74,299,024) Business-Type Activities (4,460,235) (3,719,993) (7,712,751) (4,938,247) (6,894,191) (5,038,806) 5,291,565 6,838,510 7,567,950 4,267,540

Total Primary Government Net (Expense) Revenue (63,098,126) (62,127,037) (62,438,612) (59,974,101) (74,998,064) (111,676,603) (85,460,907) (72,531,198) (106,782,223) (70,031,484)

General Revenues and Other Changes in Net Position Governmental Activities Taxes Property 27,573,528 32,595,153 39,884,268 39,532,422 35,987,987 37,447,567 35,211,107 36,321,040 41,673,188 34,794,811 Hotel/Motel 11,902,611 11,129,598 8,095,433 9,191,077 10,152,239 10,804,073 13,295,864 12,935,122 13,594,725 14,305,902 Sales 6,767,445 6,804,936 5,951,641 6,111,360 6,732,173 7,270,566 10,146,377 13,733,621 14,875,127 15,278,475 Telecommunications and Utility 2,067,057 2,210,543 2,486,536 2,138,103 2,243,436 2,425,711 2,171,350 2,400,629 2,257,492 2,195,991 Amusement 1,521,026 1,519,388 1,528,604 1,254,174 1,267,192 1,655,937 1,286,320 1,917,696 1,951,881 1,930,297 Restaurant Gross Receipts 1,629,658 1,639,910 1,467,400 1,584,147 1,689,069 1,878,335 2,257,895 2,501,402 2,489,786 2,538,861 Parking 953,251 989,891 879,307 908,525 1,009,577 1,030,137 1,282,645 1,320,288 1,211,919 1,230,087 Other 729,203 727,173 595,436 655,654 650,206 703,817 772,361 760,776 803,306 892,107 Investment Earnings 878,154 (6,456,641) 5,632,326 4,595,083 (359,019) 4,884,628 5,231,051 132,476 99,189 3,453,203 Developer Contributions 468,836 ------Gain (Loss) on Sale of Capital Assets 100,269 (252,539) ------Miscellaneous 316,625 247,605 220,853 168,629 229,697 218,570 204,352 93,186 2,454,459 863,099 Transfers (2,800,656) (14,231,891) (14,358,072) (8,718,298) (24,095,817) (23,084,810) 8,235,605 16,784,214 18,082,456 12,866,143 Total Governmental Activities 52,107,007 36,923,126 52,383,732 57,420,876 35,506,740 45,234,531 80,094,927 88,900,450 99,493,528 90,348,976

Business-Type Activities Property Taxes 1,269,234 1,162,723 983,407 1,231,515 1,432,126 1,612,933 1,561,344 1,628,965 1,754,743 1,519,026 Other Taxes - - - 744,140 2,243,763 2,228,717 2,423,284 2,624,495 2,556,739 2,229,711 Investment Earnings 357,010 149,348 46,193 12,654 9,714 6,590 3,099 3,834 2,967 3,192 Gain (Loss) on Sale of Capital Assets 233,714 - (1,603,541) ------Miscellaneous 258,958 330,285 312,601 236,285 196,102 274,709 187,559 774,995 86,080 95,887 Transfers 2,800,656 14,231,891 14,358,072 8,718,298 24,095,817 23,084,810 (8,235,605) (16,784,214) (18,082,456) (12,866,143) Total Business-Type Activities 4,919,572 15,874,247 14,096,732 10,942,892 27,977,522 27,207,759 (4,060,319) (11,751,925) (13,681,927) (9,018,327)

Total Primary Government 57,026,579 52,797,373 66,480,464 68,363,768 63,484,262 72,442,290 76,034,608 77,148,525 85,811,601 81,330,649

Changes in Net Position Governmental Activities (6,530,884) (21,483,918) (2,342,129) 2,385,022 (32,597,133) (61,403,266) (10,657,545) 9,530,742 (14,856,645) 16,049,952 Business-Type Activities 459,337 12,154,254 6,383,981 6,004,645 21,083,331 22,168,953 1,231,246 (4,913,415) (6,113,977) (4,750,787)

Total Primary Government (6,071,547) (9,329,664) 4,041,852 8,389,667 (11,513,802) (39,234,313) (9,426,299) 4,617,327 (20,970,622) 11,299,165

* Accrual Basis of Accounting Data Source: Audited Financial Statements

112 VILLAGE OF ROSEMONT, ILLINOIS

Fund Balances of Governmental Funds - Last Ten Fiscal Years* December 31, 2016 (Unaudited)

2007 2008 2009

General Fund Reserved $ 68,623,166 60,961,203 51,585,908 Unreserved 13,743,590 7,700,951 7,895,705 Nonspendable - - - Restricted - - - Unassigned - - -

Total General Fund 82,366,756 68,662,154 59,481,613

All Other Governmental Funds Unreserved, Reported in, Special Revenue Funds 401,244 653,992 831,167 Debt Service Funds 3,913,459 2,209,215 1,802,370 Capital Projects Funds 7,110,463 2,322,992 (405,424) Nonspendable - - - Restricted - - - Unassigned (Deficit) - - -

Total All Other Governmental Funds 11,425,166 5,186,199 2,228,113

Total Fund Balances, Governmental Funds 93,791,922 73,848,353 61,709,726

* Modified Accrual Basis of Accounting

The Village implemented GASB Statement No. 54 for the fiscal year ended December 31, 2011.

Data Source: Audited Financial Statements

113 2010 2011 2012 2013 2014 2015 2016

48,233,113 ------7,840,765 ------11,360,610 9,560,610 16,638,110 19,153,704 38,065,649 49,059,980 - 33,093,422 35,736,507 39,922,838 - - - - 7,491,318 12,365,709 22,083,285 34,682,245 29,349,901 20,776,505

56,073,878 51,945,350 57,662,826 78,644,233 53,835,949 67,415,550 69,836,485

706,895 ------5,200,544 ------19,761,058 ------7,276,265 8,204,589 - - - - - 70,757,350 65,393,224 17,076,353 1,736,599 5,039,493 2,741,718 - (9,810,418) (10,020,262) (11,526,743) (25,081,766) (36,713,177) (49,994,234)

25,668,497 68,223,197 63,577,551 5,549,610 (23,345,167) (31,673,684) (47,252,516)

81,742,375 120,168,547 121,240,377 84,193,843 30,490,782 35,741,866 22,583,969

114 VILLAGE OF ROSEMONT, ILLINOIS

Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years* December 31, 2016 (Unaudited)

2007 2008 2009

Revenues Taxes $ 51,525,751 55,983,976 59,417,306 Licenses and Fees 1,084,529 860,498 725,680 Intergovernmental 1,703,756 2,112,518 1,660,520 Charges for Services 1,550,278 1,429,537 1,347,999 Fines and Forfeitures - - - State/City Reimbursements 178,874 - - Rent 2,871,606 2,423,022 2,402,902 Net Increase (Decrease) in Fair Value of Investments (2,529,946) (8,767,161) 4,495,515 Interest and Other 4,040,219 3,246,361 2,660,776 Miscellaneous - - - Total Revenues 60,425,067 57,288,751 72,710,698

Expenditures Executive and Legislative 515,923 588,758 786,051 General Government 14,959,093 13,243,664 12,778,876 Creative and Design - - - Public Works and Economic Development 12,341,674 11,865,532 8,482,856 Public Safety 15,373,223 14,676,352 15,082,594 Health and License 215,409 243,901 294,682 Housing and Social Services 2,118,749 2,050,819 2,569,508 Business Development Commission 230,714 183,882 232,451 Culture and Recreation 181,117 225,951 290,556 Building Department - - - Ballpark - - - Capital Outlay 7,899,272 12,027,586 16,673,170 Debt Service Principal Retirement 8,807,115 15,289,530 47,773,479 Interest and Fiscal Charges 9,822,694 14,112,603 13,383,495 Bond Issuance Costs 919,042 121,900 276,398 Payment to Advance Refunding Escrow - - - Total Expenditures 73,384,025 84,630,478 118,624,116

Deficiency of Revenues Over Expenditures (12,958,958) (27,341,727) (45,913,418)

Other Financing Sources (Uses) Proceeds of Long-Term Debt 50,737,500 8,705,000 41,429,000 Principal Payments - - - Premium (Discount) on Debt Issuance (661,680) (38,797) (445,500) Payment to Escrow Agent - - - Payment to Bond Holder - - - Proceeds from Sale of Land 3,020,384 3,470,035 1,485,373 Disposal of Capital Assets - - - Developer Contributions 468,836 - - Transfers In 35,072,093 35,075,858 59,319,727 Transfers Out (33,843,656) (39,813,939) (68,013,809) 54,793,477 7,398,157 33,774,791

Net Change in Fund Balances 41,834,519 (19,943,570) (12,138,627)

Debt Service as a Percentage of Noncapital Expenditures 28.40% 40.50% 60.00% * Modified Accrual Basis of Accounting Data Source: Audited Financial Statements

115 2010 2011 2012 2013 2014 2015 2016

59,827,152 58,981,803 62,426,073 65,476,630 71,744,824 78,618,509 73,044,873 834,084 1,034,957 1,137,788 1,552,617 1,389,681 1,353,737 1,263,217 2,196,456 903,518 1,238,771 655,180 1,011,098 1,841,323 2,081,523 1,312,899 1,369,960 1,459,027 1,912,059 2,167,644 1,849,079 1,496,597 - - - - 1,342,423 1,382,032 1,311,140 ------2,604,159 2,823,392 2,864,669 2,931,540 2,961,885 2,837,933 2,761,424 3,140,288 (2,227,014) 2,362,310 3,428,322 - - - 4,429,816 2,790,216 3,676,780 3,078,164 132,476 99,189 3,453,203 - - - - 238,520 2,563,654 1,004,669 74,344,854 65,676,832 75,165,418 79,034,512 80,988,551 90,545,456 86,416,646

731,158 727,299 758,276 770,794 779,005 886,336 779,805 13,214,311 10,050,575 10,329,574 10,365,929 10,910,633 11,240,384 10,006,966 - - - - 2,645,444 1,923,553 2,360,132 11,479,535 20,007,713 17,736,200 12,536,449 14,056,524 12,052,416 12,906,435 14,160,326 13,822,031 14,992,620 18,500,986 19,734,207 49,486,217 18,412,507 333,959 227,127 190,425 181,744 268,483 250,265 282,407 2,102,361 2,033,794 2,085,869 2,134,650 2,192,057 2,298,407 2,094,591 217,181 212,286 242,148 277,183 270,813 272,343 290,413 353,403 308,206 316,049 339,323 409,324 408,777 485,385 - 219,640 199,966 228,631 267,819 288,791 283,178 - 181,422 514,974 855,503 1,047,229 965,489 1,017,049 15,927,093 36,355,939 59,198,530 40,601,342 12,326,384 27,192,032 18,102,961

6,428,557 16,288,979 8,706,429 17,365,092 28,274,291 22,775,000 32,005,000 13,088,812 19,685,570 19,489,769 20,871,864 19,080,725 14,419,450 13,417,852 1,610,819 1,790,056 2,498,072 555,522 - - - 2,140,000 ------81,787,515 121,910,637 137,258,901 125,585,012 112,262,938 144,459,460 112,444,681

(7,442,661) (56,233,805) (62,093,483) (46,550,500) (31,274,387) (53,914,004) (26,028,035)

70,085,000 82,525,000 104,630,000 24,875,000 37,615,000 42,095,000 - - - - (23,876,206) - - - (546,864) (1,018,720) (930,759) 116,187 - - - (36,301,398) - (44,254,726) ------(36,805,222) - - 306,750 3,235 2,082 153,380 - - - - - 1,730 256,666 3,995 ------55,169,075 76,881,317 116,974,774 103,741,955 75,987,591 75,800,615 61,611,147 (61,237,253) (78,382,125) (113,256,058) (95,506,350) (59,203,377) (58,987,193) (48,745,004) 27,475,310 80,008,707 63,165,313 9,503,966 17,595,722 59,165,088 12,870,138

20,032,649 23,774,902 1,071,830 (37,046,534) (13,678,665) 5,251,084 (13,157,897)

29.60% 42.00% 36.10% 45.00% 43.63% 29.72% 44.62%

116 VILLAGE OF ROSEMONT, ILLINOIS

Assessed Value and Actual Value of Taxable Property - Last Ten Fiscal Years December 31, 2016 (Unaudited)

Fiscal Residential Farm Commercial Industrial Year Property Property Property Property

2007 $ 87,758,672 $ - $ 219,654,774 $ 67,291,182

2008 103,461,486 - 218,736,107 60,346,800

2009 82,839,363 - 202,470,694 57,748,376

2010 74,718,384 - 200,383,495 45,198,889

2011 63,534,233 - 177,314,251 37,198,250

2012 58,948,690 - 172,079,034 34,080,478

2013 48,091,564 - 166,421,482 45,445,918

2014 48,264,678 - 207,291,732 2,859,672

2015 46,841,266 - 358,482,024 2,402,217

2016 N/A N/A N/A N/A

Data Source: Office of the Cook County Clerk

(1) Assessed value is set by the County Assessor on an annual basis. The assessment level is then adjusted by the State with a County Multiplier based on the factor needed to bring the average prior years' level up to 33-13% of market value. All property is reassessed on a repeating triennial cycle.

N/A - Not Available

117 Total Total Assessed Value Taxable Total Estimated as a % of Real Estate Assessed Direct Tax Actual Estimated Total Railroad Value Rate Value (1) Actual Value

$ 374,704,628 $ 299,448 $ 375,004,076 $ 1.459 $ 1,125,012,228 33.33%

382,544,393 364,513 382,908,906 1.429 1,148,726,718 33.33%

343,058,433 352,470 343,410,903 1.654 1,030,232,709 33.33%

320,300,768 423,282 320,724,050 1.811 962,172,150 33.33%

278,046,734 396,751 278,443,485 2.159 835,330,455 33.33%

265,108,202 266,214 265,374,416 2.266 796,123,248 33.33%

265,108,202 280,402 265,388,604 2.367 780,718,098 33.33%

258,416,082 328,140 258,744,222 2.380 776,232,666 33.33%

407,725,507 397,375 408,122,882 2.547 1,224,368,646 33.33%

N/A N/A N/A N/A N/A N/A

118 VILLAGE OF ROSEMONT, ILLINOIS

TIF Frozen Values, Current Values and Incremental Values - Last Ten Fiscal Years December 31, 2016 (Unaudited)

The frozen values, current values, and incremental values (the excess of the current values over frozen values) of the six TIF areas in the Village and the total EAVs of the Village for the levy years shown are as follows:

TIF Area 2007 2008 2009 2010

Frozen Values 1 $ 14,137,398 14,137,398 14,137,398 14,137,398 3 74,011,999 74,011,999 66,047,952 66,047,952 4 12,776,993 12,776,993 24,347,944 24,347,944 5 2,427,325 2,427,325 2,427,325 2,427,325 6- - - - 7- - - - 8- - - -

Current Values 1 306,554,635 330,972,728 275,109,210 262,834,252 3 327,966,145 423,090,521 347,141,403 253,444,935 4 7,997,869 19,695,603 22,760,050 24,299,510 5 19,942,786 20,156,988 17,220,284 17,291,133 6- - - - 7- - - - 8- - - -

Incremental Values of TIF Areas 1 292,417,237 316,835,330 260,971,812 248,696,854 3 255,840,664 351,066,743 273,129,404 189,188,106 4- 8,211,552 9,983,057 4,233,707 5 17,515,461 17,729,663 14,792,959 14,863,808 6- - - - 7- - - - 8- - - -

Total Incremental Value 565,773,362 693,843,288 558,877,232 456,982,475

Village EAV Excluding Incremental Value (Taxable) 375,004,076 382,908,906 343,410,903 320,724,050

Total Village EAV 940,777,438 1,076,752,194 902,288,135 777,706,525

Data Source: Office of Cook County Clerk

(1) The 2016 assessed valuation does not become available until September 2017. 119 2011 2012 2013 2014 2015 2016

14,137,398 12,345,940 12,345,940 12,345,940 - - 65,934,752 65,934,752 65,934,752 65,934,752 65,934,752 65,934,752 24,807,644 24,807,644 24,807,644 24,807,644 24,807,644 24,807,644 2,427,325 2,427,325 2,427,325 2,427,325 2,427,325 2,427,325 - 8,248,168 8,248,168 8,248,168 22,490,537 22,490,537 - - 32,772,218 32,772,218 32,772,218 32,772,218 ------

232,951,019 207,073,947 170,068,540 169,348,156 - (1) 228,281,921 202,638,693 185,210,089 200,006,200 214,353,263 (1) 36,085,225 34,703,198 66,228,445 95,536,483 94,443,521 (1) 15,384,218 13,689,220 12,643,549 12,881,033 11,081,557 (1) - - 7,887,505 7,774,288 36,165,134 (1) - - - 27,597,906 26,662,343 (1) - - - - - (1)

218,813,621 192,936,549 157,722,600 157,002,216 - (1) 164,025,092 138,495,064 121,066,460 135,862,571 150,209,634 (1) 27,577,687 26,361,489 48,345,577 80,433,842 79,384,300 (1) 12,965,893 11,261,895 10,216,224 10,453,708 8,654,232 (1) - - - - 15,724,032 (1) - - - - - (1) - - - - - (1)

423,382,293 369,054,997 337,350,861 383,752,337 253,972,198 (1)

278,443,485 265,374,416 260,239,366 258,744,222 408,122,882 (1)

701,825,778 634,429,413 597,590,227 642,496,559 662,095,080 (1)

120 VILLAGE OF ROSEMONT, ILLINOIS

Direct and Overlapping Property Tax Rates, Leyden Township - Last Ten Fiscal Years December 31, 2016 (Unaudited)

2007 2008 2009

Direct Rates Village of Rosemont (1) 1.4590 1.4290 1.6540

Overlapping Rates Cook County 0.4460 0.4150 0.3940 Cook County Forest Preserve 0.0530 0.0510 0.0490 Metropolitan Water Reclamation District 0.2630 0.2520 0.2610 Consolidated Elections 0.0120 - 0.0210 Leyden Township (2) 0.1690 0.1670 0.1760 Rosemont Park District 0.2580 0.2630 0.2940 School District #78 1.2030 1.2030 1.2620 High School District #212 1.8680 1.8690 1.9890 Community College District #504 0.2240 0.2120 0.2140

Total Direct and Overlapping Rates 5.9550 5.8610 6.3140

Data Source: Office of the Cook County Clerk

(1) The Village rates shown relate only to the unabated portions of debt service levies for a portion of its outstanding general obligation debt (other than bonds issued in connection with tax increment financial projects).

(2) Includes rates for township, road and bridge, and general assistance.

N/A - Not Available

121 2010 2011 2012 2013 2014 2015 2016

1.8110 1.8110 2.1590 2.2660 2.3670 2.3800 2.5470 N/A

0.4230 0.4230 0.4620 0.5310 0.5600 0.5680 0.5520 N/A 0.0510 0.0510 0.0580 0.0630 0.0690 0.0690 0.0690 N/A 0.2740 0.2740 0.3200 0.3700 0.4170 0.4300 0.4260 N/A - 0.0250 - 0.0310 - 0.0340 N/A 0.2000 0.2000 0.2270 0.2570 0.3020 0.3080 0.3230 N/A 0.3230 0.3230 0.3830 0.4140 0.4370 0.4490 0.4330 N/A 1.3880 1.3880 1.5940 1.6980 1.7460 1.8470 1.7180 N/A 2.2230 2.2230 2.5090 2.8300 3.2640 3.3190 3.4710 N/A 0.2250 0.2250 0.2670 0.2690 0.3250 0.3360 0.3520 N/A

6.9180 6.9180 8.0040 8.6980 9.5180 9.7060 9.9250 N/A

122 VILLAGE OF ROSEMONT, ILLINOIS

Direct and Overlapping Property Tax Rates, Maine Township - Last Ten Fiscal Years December 31, 2016 (Unaudited)

2007 2008 2009

Direct Rates Village of Rosemont (1) 1.4590 1.4290 1.6540

Overlapping Rates Cook County 0.4460 0.4150 0.3940 Cook County Forest Preserve 0.0530 0.0510 0.0490 Metropolitan Water Reclamation District 0.2630 0.2520 0.2610 Consolidated Elections 0.0120 - 0.0210 Maine Township (2) 0.1140 0.1120 0.1170 Northwest Mosquito Abatement 0.0080 0.0080 0.0080 Rosemont Park District 0.2580 0.2630 0.2940 School District #62 2.3500 2.3290 2.4920 High School District #207 1.6020 1.5770 1.6170 Community College District #535 0.1410 0.1400 0.1400

Total Direct and Overlapping Rates 6.7060 6.5760 7.0470

Data Source: Office of the Cook County Clerk

(2) Includes rates for township, road and bridge, and general assistance.

N/A - Not Available

123 2010 2011 2012 2013 2014 2015 2016

1.8110 1.8110 2.1590 2.2660 2.3670 2.3800 2.5470 N/A

0.4230 0.4230 0.4620 0.5310 0.5600 0.5680 0.5520 N/A 0.0510 0.0510 0.0580 0.0630 0.0690 0.0690 0.0690 N/A 0.2740 0.2740 0.3200 0.3700 0.4170 0.4300 0.4260 N/A - 0.0250 - 0.0310 - 0.0340 N/A 0.1310 0.1310 0.1490 0.1680 0.2100 0.2100 0.2200 N/A 0.0090 0.0090 0.0100 0.0110 0.0130 0.0130 0.0110 N/A 0.3230 0.3230 0.3830 0.4140 0.4370 0.4490 0.4330 N/A 2.7410 2.7410 3.1070 3.4900 4.2550 4.2930 4.4870 N/A 1.7820 1.7820 1.9950 2.2150 2.7220 2.7390 2.9010 N/A 0.1600 0.1600 0.1960 0.2190 0.2560 0.2580 0.2710 N/A

7.7050 7.7050 8.8640 9.7470 11.3370 11.4090 11.9510 N/A

124 [THIS PAGE INTENTIONALLY LEFT BLANK] VILLAGE OF ROSEMONT, ILLINOIS

Principal Property Taxpayers - Current Tax Levy Year and Nine Tax Levy Years Ago December 31, 2016 (Unaudited)

2015 Tax Levy 2006 Tax Levy Percentage Percentage of Total of Total Taxable Village Taxable Village Equalized Taxable Equalized Taxable Assessed Assessed Assessed Assessed Taxpayer Value (1) Rank Value (2) Value (3) Rank Value (4)

Property Tax Department $ 73,132,874 1 11.05% Thomson Reuters 54,058,460 2 8.16% Hyatt Corporation 50,189,268 3 7.58% $ 96,410,548 2 11.71% AGWOA Columbia Center 38,835,533 4 5.87% SPUS6 One O'Hare Ctr 26,017,867 5 3.93% Bletchley Hotel 23,967,272 6 3.62% VRS Balmoral LLC 19,341,688 7 2.92% Clearview Hotel 17,110,793 8 2.58% PD Rosemont Assoc 2 16,937,164 9 2.56% BRE IL OFC Owner LLC 16,211,134 10 2.45% Duke Realty Corp 130,010,883 1 15.79% C & O PTS 54,038,617 3 6.56% Higgins Dev. Partners 41,629,333 4 5.05% Ashford Hospitality 37,541,527 5 4.56% GLL US Official LP 29,535,229 6 3.59% LNG RDGE OFC PRTFL LP 28,808,869 7 3.50% US Equities Asset MG 26,500,129 8 3.22% Holiday Inn O'Hare Intl 24,569,529 9 2.98% Destination Rosemont 21,506,437 10 2.61%

335,802,053 50.72% 490,551,101 59.57%

Data Sources: Office of the Cook County Clerk

(1) Includes property parcels with 2015 equalized assessed value over approximately $200,000.

(2) Uses the Village's 2015 Equalized Assessed Value (including incremental values) of $662,095,080. The Village's taxable 2015 Equalized Assessed Valuation is $408,122,882.

(3) The figures above are totals of numerous, occassionally small, parcel valuations as recorded in the County Assessor's offices. They were compiled from a meticulous page by page search listings of such records and are believed to be reflective of the total valuations of the taxpayer listed herein. It is possible, however, that certain parcels may have been overlooked.

(4) Uses the Village's 2006 Equalized Assessed Value (including incremental values).

125 VILLAGE OF ROSEMONT, ILLINOIS

Property Tax Levies and Collections - Last Ten Tax Levy Years December 31, 2016 (Unaudited)

Tax Levy Year/ Tax Collection Year Levied

2006/2007 $ 37,931,551

2007/2008 39,556,970

2008/2009 46,559,927

2009/2010 41,355,323

2010/2011 37,807,516

2011/2012 40,287,464

2012/2013 38,514,020

2013/2014 39,643,736

2014/2015 45,622,774

2015/2016 37,927,906

Data Sources: Office of the Cook County Clerk and Treasurer

(1) Excludes delinquent taxes collected in years subsequent to normal collection year, interest earned, scavenger sale and general forfeiture collections.

(2) Cook County property taxes are collected primarily in March and September of each year. The system of distributing property tax collections used by Cook County makes special allocations (such as those associated with tax increment financing) only after distributions of general taxes; accordingly, distributions of general taxes to the Village were proportionately higher early in the collection year.

(3) Subsequent and net collections, net of refunds, distributed as of December 31, 2016.

126 Collected within the Collections Fiscal Year of the Levy in Total Collections to Date Percentage Subsequent Percentage Amount (1) of Levy (2) Years (3) Amount of Levy

$ 31,890,112 84.07% $ 5,752,799 $ 37,642,911 99.24%

38,314,813 96.86% 339,697 38,654,510 97.72%

38,796,323 83.33% 2,641,844 41,438,167 89.00%

32,249,453 77.98% 4,043,928 36,293,381 87.76%

36,247,226 95.87% 1,950,181 38,197,407 101.03%

38,851,999 96.44% 2,467 38,854,466 96.44%

38,118,878 98.97% 14,297 38,133,175 99.01%

39,236,971 98.97% 659,172 39,896,143 100.64%

45,013,485 98.66% 5,509 45,018,994 98.68%

37,420,071 98.66% - 37,420,071 98.66%

127 VILLAGE OF ROSEMONT, ILLINOIS

Ratios of Outstanding Debt by Type - Last Ten Fiscal Years (in Thousands of Dollars) December 31, 2016 (Unaudited)

Governmental Activities Bank Loans, General Tax Increment Mortgages, Fiscal Obligation Promissory TIF Financing and Other Year Bonds Note Note Revenue Bonds Debt

2007 $ 144,280 $ - $ 1,945 $ 5,700 $ 51,770

2008 146,666 - 1,335 5,700 43,410

2009 182,366 - 690 5,700 2,009

2010 213,072 - - 5,600 1,145

2011 279,655 - - 5,400 997

2012 334,643 - - 5,200 858

2013 324,333 - - - -

2014 296,655 - - - -

2015 311,262 4,500 - - -

2016 283,912 - - - -

Data Source: Audited Financial Statements

Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements.

(1) See the Schedule of Demographic and Economic Statistics for personal income and population data.

N/A - Not Available

128 Business-Type Activities Percentage General Bank Total of Obligation Loans and Primary Personal Per Bonds Mortgages Government Income (1) Capita (1)

$ 34,230 $ 1,113 $ 239,038 286.08% $ 60,393.63

31,190 833 229,134 274.23% 58,318.66

27,905 682 219,352 278.45% 56,143.33

34,545 507 254,869 283.97% 60,654.21

33,715 318 320,085 303.96% 75,813.60

32,850 121 373,672 338.19% 88,338.53

31,950 - 356,283 323.95% 84,108.36

30,575 - 327,230 305.12% 77,432.56

30,118 - 345,880 311.46% 80,343.79

28,735 - 312,647 N/A N/A

129 VILLAGE OF ROSEMONT, ILLINOIS

Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years (in Thousands of Dollars) December 31, 2016 (Unaudited)

Percentage of Less: Amounts Total Taxable General Available in Assessed Fiscal Obligation Debt Value of Per Year Bonds Service Total Property (1) Capita (2)

2007 $ 76,690 $ (3,913) $ 72,777 6.47% $ 18,387

2008 82,225 (2,209) 80,016 6.97% 20,365

2009 210,271 (1,802) 208,469 20.24% 53,358

2010 247,617 (5,201) 242,416 25.19% 57,691

2011 313,370 (8,184) 305,186 36.53% 72,285

2012 367,493 (10,579) 356,914 44.83% 84,377

2013 356,283 (3,202) 353,081 45.23% 83,352

2014 181,285 (140) 181,145 23.34% 42,864

2015 341,380 (3,068) 338,312 27.63% 78,586

2016 312,647 (1,678) 310,969 N/A N/A

Data Source: Audited Financial Statements

Note: Details regarding the Village's outstanding debt can be found in the notes to the financial statements.

(1) See the Schedule of Assessed Value and Actual Value of Taxable Property for property value data. (2) See the Schedule of Demographics and Economic Statistics for population data.

N/A - Not Available

130 VILLAGE OF ROSEMONT, ILLINOIS

Schedule of Direct and Overlapping Governmental Activities Debt December 31, 2016 (Unaudited)

Estimated Estimated Share of Percentage Overlapping Governmental Unit Gross Debt (1) Applicable* Debt

Village of Rosemont $ 98,550,000 (1) 100.000% $ 98,550,000

Overlapping Debt Cook County 3,213,141,750 0.308% 9,896,477 Cook County Forest Preserve 159,440,240 0.308% 491,076 Metropolitan Water Reclamation District 2,583,922,748 (2) 0.314% 8,113,517 Rosemont Park District 453,000 98.520% 446,296 School District #62 - (3) 0.590% - School District #81 24,886,333 (4) 1.414% 351,893 High School District #207 15,600,000 2.213% 345,228 High School District #212 29,935,000 17.049% 5,103,618 Community College District #504 - (3) 4.301% - Community College District #535 30,895,000 (5) 0.468% 144,589

Total Overlapping Debt 6,058,274,071 24,892,693

Total Direct and Overlapping Debt 6,156,824,071 123,442,693

Data Source: Office of the Cook County Clerk and the Cook County Comptroller and the Treasurer of the Metropolitan Water Reclamation District

(1) Excludes self-supporting bonds which are abated annually.

(2) Includes IEPA Revolving Loan Funds Bonds.

(3) Excludes Alternate Revenue Source Bonds which are expected to be paid from sources other than general taxation

(4) Includes original principal amounts of outstanding General Obligation Capital Appreciation Bonds.

(5) Excludes outstanding Debt Certificates.

* Determined by ratio of assessed valuation of property subject to taxation in the Village to valuation of property subject to taxation in overlapping unit.

131 VILLAGE OF ROSEMONT, ILLINOIS

Legal Debt Margin Information December 31, 2016 (Unaudited)

Under the 1970 Illinois Constitution, there is no limit as to the amount of debt a home rule unit may incur, provided that any debt that is payable from ad valorem property tax receipts must mature no more than 40 years after the time the debt is incurred.

132 VILLAGE OF ROSEMONT, ILLINOIS

Pledged-Revenue Coverage - Last Nine Fiscal Years December 31, 2016 (Unaudited)

Tax Increment Revenue Bonds Fiscal Pledged TIF Debt Service Year Revenues Principal Interest Coverage

2008 $ - $ - $ 290,700 (1)

2009 - - 290,700 (1)

2010 - 100,000 290,700 (1)

2011 485,600 200,000 285,600 100%

2012 475,400 200,000 275,400 100%

2013 832,600 700,000 132,600 100%

2014 - - - -

2015 - - - -

2016 - - - -

Data Source: Audited Financial Statements

(1) Pledged revenues are not expected to be received until 2011. Debt service through fiscal year 2010 is scheduled to be paid from capitalized interest proceeds from bond issuance.

Note: During 2013, the Tax Increment Revenue Bonds were refunded with the Series 2013B Bonds.

133 VILLAGE OF ROSEMONT, ILLINOIS

Demographic and Economic Statistics - Last Ten Fiscal Years December 31, 2016 (Unaudited)

Per Capita Fiscal Personal Personal Unemployment Year Population Income Income Rate

2007 3,958 $ 83,554,944 $ 21,110 4.00%

2008 3,929 83,554,944 21,266 4.80%

2009 3,907 78,776,841 20,163 7.90%

2010 4,202 89,750,518 21,359 8.00%

2011 4,222 105,305,124 24,942 7.40%

2012 4,230 110,491,830 26,121 7.40%

2013 4,236 109,979,268 25,963 6.80%

2014 4,226 107,247,428 25,378 5.20%

2015 4,305 111,051,780 25,796 4.20%

2016 N/A N/A N/A 4.00%

Data Sources: U.S. Department of Commerce, Bureau of the Census and Illinois Department of Employment Security

N/A - Not Available

134 VILLAGE OF ROSEMONT, ILLINOIS

Principal Employers - Current Fiscal Year and Nine Fiscal Years Ago December 31, 2016 (Unaudited)

2016 2007 Percentage Percentage of Total of Total Village Village Employer Employees Rank Employment Employees Rank Employment

US Foodservice 1,200 1 6.30% MB Financial Bank 1,200 2 6.30% 550 5 3.60% Village of Rosemont 720 3 3.80% 600 3 3.93% Hyatt Regency O'Hare 565 4 3.00% 625 2 4.10% Central States Funds 550 5 2.90% 550 4 3.60% Cisco Systems, Inc 519 6 2.70% Xerox Capital Services 435 7 2.30% 750 1 4.91% American Academy of Orthopedic Surgeons 400 8 2.10% 242 15 1.59% Life Source 400 9 2.10% Wintrust Bank 400 10 2.10% Loews Hotel Rosemont 340 11 1.80% Reyes Holdings, LLC 300 12 1.60% Culligan 300 13 1.60% 300 12 1.97% U.S. Customs & Border Protection 300 14 1.60% 300 10 1.97% Life Fitness, Inc 300 15 1.60% Banco Popular N.A. 375 6 2.46% Westin Hotel 300 7 1.97% Advance Transformer 300 8 1.97% Sprint 300 9 1.97% Cole Taylor 300 11 1.97% Wyndham Hotel O'Hare 300 13 1.97% Life Watch 250 14 1.64% Crowne Plaza 200 16 1.31%

7,929 7,929 41.80% 6,242 40.93%

Data Sources: Rosemont Chamber of Commerce, April 2016, 2016 Illinois Services, Manufacturers and Harris Illinois Industrial Directories, Illinois Department of Employment Security

135 VILLAGE OF ROSEMONT, ILLINOIS

Full-Time Equivalent Village Government Employees by Function - Last Ten Fiscal Years December 31, 2016 (Unaudited)

2007 (1) 2008 2009

General Government, Executive and Legislative 16 16 19

Public Works and Economic Development 29 28 27

Public Safety 236 180 167

Health and License 3 4 4

Housing and Social Services 11 14 11

Business Development Commission 2 2 2

Culture and Recreation 3 3 3

Building Department - - -

Ballpark - - -

Creative Design - - -

Allstate Arena 29 27 20

Donald E. Stephens Convention Center 10 18 10

Commercial Properties 2 2 3

Rosemont Theatre 15 14 7

Entertainment District - - -

Waterworks and Sewerage 3 3 3

Village Gift Shop 1 1 1

Rosemont Health and Fitness Center 24 24 29

Totals 384 336 306

Data Source: Village Budget Records

(1) Certain employees were recategorized as of January 1, 2007, for purposes of this analysis.

136 2010 2011 2012 2013 2014 2015 2016

13 18 16 15 14 15 17

25 25 27 26 25 27 28

153 160 156 155 156 155 180

4 3 2 3 4 3 4

12 10 12 12 13 12 12

2 2 2 2 2 2 2

4 4 4 4 4 4 5

- 2 2 2 2 3 3

- 3 7 10 9 10 11

- - - - 4 4 4

21 17 20 23 21 26 26

25 18 25 28 35 37 33

4 5 5 7 7 7 8

7 8 9 10 8 12 14

- 1 10 16 16 20 25

2 2 2 3 3 3 3

1 ------

22 19 20 19 16 18 19

295 295 297 319 335 339 358 394

137 VILLAGE OF ROSEMONT, ILLINOIS

Operating Indicators by Function/Program - Last Ten Fiscal Years December 31, 2016 (Unaudited)

2007 2008 2009 2010

Public Works and Economic Development: Vehicles 25 25 26 25 Street Reconstruction (Miles) - - 0.16 0.75 Street Resurfacing (Miles) - - 0.66 0.75

Public Safety: Police: Physical Arrests 359 503 465 275 Traffic Violations 2,076 2,338 1,847 5,216 Fire: Emergency Responses 2,336 2,041 1,897 1,695 Inspections 1,422 1,455 1,726 1,755

Health and License: Permits Issued 102 95 89 175 Licenses Issued 869 826 844 793

Housing and Social Services: Units Rented 308 318 344 355

Business Development Commission: Members 252 242 235 235

Culture and Recreation: Programs 10 12 20 29

Allstate Arena: Events 149 160 130 166 Attendance 1,006,107 972,607 904,336 960,623 Dates Used 125 132 110 145

Donald E. Stephens Convention Center: Events 70 73 65 61 Attendance 739,343 528,095 1,000,862 1,108,851

Commercial Properties: Square Feet Rented 200,444 171,882 55,655 55,655

Rosemont Theatre: Events 132 115 78 71 Attendance 334,855 281,631 228,972 217,673 Dates Used 89 80 72 65

Waterworks and Sewerage: Gallons Used (in Thousands) 634,247 590,679 517,306 502,053 Water Main Breaks 16 16 11 10

Village Gift Shop (1) Items Sold 169 2,458 530 -

Rosemont Health and Fitness Center Memberships 2,567 2,231 2,240 2,633

Data Source: Various Village Departments

Note: Indicators are not available for the general government, executive and legislative and Entertainment District functions.

(1) The Village Gift Shop was closed in 2011. Items sold in 2009 include 501 items donated to charitable organizations. Items sold in 2008 include 2,395 items donated to charitable organizations.

138 2011 2012 2013 2014 2015 2016

31 31 30 31 32 32 32 - - 0.25 - - 0.25 0.25 1.21 1.21 0.25 0.25 3.86 0.75 0.50

269 269 518 639 863 1,159 667 3,994 3,994 3,626 3,913 3,314 6,202 2,943

1,895 1,895 2,260 2,437 853 850 2,413 1,521 1,521 1,623 1,327 2,021 2,226 1,835

150 150 182 468 99 633 588 905 905 1,003 1,576 747 1,143 791

361 361 373 378 366 365 365

235 235 236 260 258 264 267

31 31 44 38 55 51 53

157 157 165 139 159 159 167 1,013,190 1,013,190 957,542 789,917 1,061,946 1,034,531 1,075,845 131 131 138 116 136 131 131

58 58 55 57 66 68 71 593,978 593,978 1,040,160 967,178 1,079,371 1,241,400 1,172,430

124,724 124,724 93,737 85,561 111,368 114,215 107,925

77 77 109 77 64 74 90 202,767 202,767 279,272 206,981 189,521 192,137 274,522 45 45 61 62 52 68 68

584,570 584,570 614,295 594,640 716,140 640,989 647,710 7 7 8 5 16 8 7

------

2,328 2,328 2,469 2,189 2,040 2,160 2,392

139 VILLAGE OF ROSEMONT, ILLINOIS

Capital Asset Statistics by Function/Program - Last Ten Fiscal Years December 31, 2016 (Unaudited)

2007 2008 2009 2010

Public Works and Economic Development: Miles of Streets 16.8 16.8 17.5 17.5 Streetlights 444 444 444 444

Public Safety: Police: Vehicles 29 33 47 40 Stations 3 3 3 3 Fire: Vehicles 21 20 20 19 Stations 2 2 2 2

Housing and Social Services: Apartment Buildings 25 26 26 26

Culture and Recreation: Building and Other Structures 2 2 2 2

Allstate Arena: Buildings 1 1 1 1

Donald E. Stephens Convention Center: Square Feet Available 890,000 890,000 890,000 890,000

Commercial Properties: Square Feet Available 200,444 200,444 120,105 120,105

Rosemont Theatre: Buildings 1 1 1 1

Entertainment District Parking Spaces Available 3,369 3,369 3,369 3,369 Square Feet Available - - - -

Waterworks and Sewerage Water Mains (Miles) 21.5 21.5 21.5 21.5 Sanitary Sewers (Miles) 13.0 13.0 13.0 13.0

Village Gift Shop: Number of Figurines 6,651 4,183 3,653 3,653

Rosemont Health and Fitness Center: Pieces of Equipment 176 175 175 181

Data Source: Various Village Departments

Note: No capital asset indicators are available for the general government, executive and legislative, health and licenses, and business development commission functions.

(1) The Village Gift Shop was closed in 2011.

140 2011 2012 2013 2014 2015 2016

17.5 18.0 18.0 18.0 18.0 18.0 444 410 410 410 482 482

31 30 35 31 40 45 3 3 3 3 3 3

17 14 16 16 12 11 2 2 2 2 2 2

35 37 37 37 37 36

2 2 2 2 2 2

1 1 1 1 1 1

890,000 890,000 890,000 890,000 890,000 890,000

154,682 163,047 155,304 131,368 118,700 132,700

1 1 1 1 1 1

3,369 3,369 3,369 3,369 3,369 3,369 - 88,535 119,377 121,656 121,656 121,656

23.0 23.5 23.5 23.5 23.5 23.5 13.1 14.0 14.0 14.0 14.0 14.0

(1) (1) (1) (1) (1) (1)

209 240 230 234 238 239

141 [THIS PAGE INTENTIONALLY LEFT BLANK]

APPENDIX B

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 President and Board of Trustees of the Village of Rosemont, Cook County, Illinois (the “Village”), passed preliminary to the issue by the Village of its fully registered General Obligation Corporate Purpose Refunding Bonds, Series 2017 (the “Bonds”), to the amount of $______, dated the date hereof, and due and payable serially on December l of the years, in the amounts and bearing interest at the rates percent per annum as follows:

Year Amount ($) Rate (%)

Each of the Bonds bears interest from the later of its dated date as stated above or from the most recent interest payment date to which interest has been paid or duly provided for, until the principal amount of each such Bond, respectively, is paid or duly provided for, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being payable on June 1 and December 1 of each year, commencing on June 1, 2018.

B-1

The Bonds due on and after December 1, 20__, are subject to redemption prior to maturity at the option of the Village, from any available funds, in whole or in part, on any date on or after December 1, 20__, at a redemption price of par plus accrued interest to the date fixed for redemption, as further described in the Proceedings.

Based upon such examination, we are of the opinion that the Proceedings show lawful authority for the issuance of the Bonds under the laws of the State of Illinois now in force.

We further certify that we have examined the form prescribed for the Bonds and find the same in due form of law, and in our opinion the Bonds, to the amount named, are valid and legally binding upon the Village, and all taxable property in the Village is subject to the levy of taxes to pay the same without limitation as to rate or amount, except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, 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.

It is our opinion that, subject to the Village’s compliance with certain covenants, under present law, interest on the Bonds is excludable from gross income of the owners thereof for federal income tax purposes and is not included as an item of tax preference in computing the alternative minimum tax for individuals and corporations under the Internal Revenue Code of 1986, as amended, but is taken into account in computing an adjustment used in determining the federal alternative minimum tax for certain corporations. Failure to comply with certain of such Village covenants could cause interest on the Bonds to be includible 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. In rendering our opinion on tax exemption, we have relied on the mathematical computation of the yield on the Bonds and the yield on certain investments by ______.

We express no opinion herein as to the accuracy, adequacy or completeness of the Official Statement relating to the Bonds.

In rendering this opinion, we have relied upon certifications of the Village with respect to certain material facts within the Village’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.

B-2

APPENDIX C

DTC BOOK-ENTRY ONLY SYSTEM

The following information concerning The Depository Trust Company (“DTC”) of New York, New York has been furnished by DTC for use in this Official Statement. Neither the Village nor the Underwriter takes responsibility for its accuracy or completeness.

DTC will act as the initial securities depository for the Bonds. The Bonds will be issued as fully-registered securities 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 in the aggregate principal amount of such issue, and will be deposited with DTC.

THE FOLLOWING INFORMATION HAS BEEN FURNISHED BY DTC FOR USE IN THIS OFFICIAL STATEMENT.

Depository Trust Company. DTC, the world’s largest 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 “Exchange Act”). DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity, 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 securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities 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 and Fixed Income Clearing Corporation, all of which are registered clearing 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 corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). Direct Participants and Indirect Participants are collectively referred to as “Participants.” DTC has a Standard & Poor’s rating of AA+. 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.

C-1

Purchases of the 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 the Bonds, except in the event that use of the book-entry system for the Bonds is discontinued.

Registration in Name of Cede & Co. 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, 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 the Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the security documents. For example, Beneficial Owners of the 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 a maturity 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 the Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to issuers 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).

C-2

Payments. 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 detail information from the Village or its Agent, on the 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 securities 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 nor its nominee or the Village, 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 Village, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.

Replacement Bonds upon Termination of Global Book-Entry. DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonable notice to the Village. Under such circumstances, in the event that a successor depository is not obtained, Bonds are required to be printed and delivered.

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

The information in this section concerning DTC and DTC’s book-entry system has been obtained from sources that the Village believes to be reliable, but the Village takes no responsibility for the accuracy thereof.

NEITHER THE VILLAGE, ANY PURCHASER, NOR THE BOND REGISTRAR WILL HAVE ANY RESPONSIBILITY OR OBLIGATION WITH RESPECT TO (1) THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC, CEDE & CO., OR ANY DIRECT PARTICIPANT WITH RESPECT TO OWNERSHIP INTEREST IN THE BONDS; (2) THE DELIVERY TO ANY DIRECT PARTICIPANT OR INDIRECT PARTICIPANT OR ANY OTHER PERSON, OTHER THAN A REGISTERED OWNER OF A BOND AS SHOWN IN THE BOND REGISTER, OF ANY NOTICE WITH RESPECT TO SUCH BONDS, INCLUDING ANY NOTICE OF MANDATORY TENDER FOR PURCHASE OR OF REDEMPTION; (3) THE PAYMENT TO ANY DIRECT PARTICIPANT OR INDIRECT PARTICIPANT OR ANY OTHER PERSON, OTHER THAN A REGISTERED OWNER OF A BOND AS SHOWN IN THE BOND REGISTER, OF ANY AMOUNT WITH RESPECT OF THE PRINCIPAL OF OR INTEREST OR PREMIUM ON THE BONDS; (4) THE SELECTION OF THE BENEFICIAL OWNERS TO RECEIVE PAYMENT IN THE EVENT OF ANY PARTIAL REDEMPTION OF THE BONDS; OR (5) ANY CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC AS BONDHOLDER.

The Village Treasurer is authorized under the Bond Ordinance to execute and deliver on behalf of the Village a “Representation Letter,” which may contain, among other things,

C-3

provisions relating to (i) payment procedures, (ii) transfers of the Bonds or of beneficial interest therein, (iii) redemption notices or procedures unique to DTC, (iv) additional notices or communications, and (v) amendment from time to time to conform with changing customs and practices with respect to securities industry transfer and payment practices.

FOR SO LONG AS THE BONDS ARE REGISTERED IN THE NAME OF DTC OR ITS NOMINEE, CEDE & CO., THE VILLAGE AND THE BOND REGISTRAR WILL RECOGNIZE ONLY DTC OR ITS NOMINEE, CEDE & CO., AS THE REGISTERED OWNER OF THE BONDS FOR ALL PURPOSES, INCLUDING PAYMENTS, NOTICES AND VOTING.

Any references in this Official Statement to notices or other communication to be provided to owners by the Village or the Bond Registrar will be given to DTC, as the owner. Conveyance of notices and other communications by DTC and by Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory and regulatory requirements as may be in effect from time to time. The Village and the Bond Registrar shall have no responsibility or obligation to assure that any such notice is forwarded by DTC to the Participants or by any Participant to the Beneficial Owner.

Successor Securities Depository; Discontinuance of Book-Entry Only System

If (a) the Village determines that DTC is incapable of discharging its responsibilities described in the Bond Ordinance and in the Representation Letter, (b) the Representation Letter shall be terminated for any reason, or (c) the Village determines that it is in the best interests of the Beneficial Owners of the Bonds that they be able to obtained certificated Bonds, the Village shall notify DTC and Participants of the availability through DTC of Bond certificates, and the Bonds shall no longer be restricted to being registered in the Bond Register in the name of Cede & Co., as nominee of DTC. At that time, the Village may determine that the Bonds shall be registered in the name of and deposited with a successor depository operating a book-entry system, as may be acceptable to the Village, or such depository’s agent or designee, and if the Village does not select such alternate book-entry system, then the Bonds may be registered in whatever name or names registered owners of the Bonds transferring or exchanging Bond shall designate, in accordance with the Bond Ordinance.

Notwithstanding any other provision of the Bond Ordinance to the contrary, so long as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to principal of and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, in the manner provided in the Representation Letter.

C-4

APPENDIX D

FORM OF CONTINUING DISCLOSURE UNDERTAKING AGREEMENT

CONTINUING DISCLOSURE UNDERTAKING FOR THE PURPOSE OF PROVIDING CONTINUING DISCLOSURE INFORMATION UNDER SECTION (b)(5) OF RULE 15c2-12

This Continuing Disclosure Undertaking (this “Agreement”) is executed and delivered by the Village of Rosemont, Cook County, Illinois (the “Village”), in connection with the issuance of $20,000,000* aggregate principal amount of General Obligation Corporate Purpose Refunding Bonds, Series 2017 (the “Bonds”). The Bonds are being issued pursuant to an ordinance adopted by the Mayor and Board of Trustees of the Village on the 13th day of September, 2017, as supplemented by a Bond Order executed in connection with the sale of the Bonds (collectively, the “Ordinance”).

In consideration of the issuance of the Bonds by the Village and the purchase of the Bonds by the beneficial owners thereof, the Village covenants and agrees as follows:

1. PURPOSE OF THIS AGREEMENT. This Agreement is executed and delivered by the Village as of the date set forth below, for the benefit of the beneficial owners of the Bonds and in order to assist the Participating Underwriters in complying with the requirements of the Rule (as defined below). The Village represents that it will be the only obligated person with respect to the Bonds at the time the Bonds are delivered to the Participating Underwriters and that no other person is expected to become so committed at any time after issuance of the Bonds.

2. DEFINITIONS. The terms set forth below shall have the following meanings in this Agreement, unless the context clearly otherwise requires.

Annual Financial Information means the financial information and operating data described in Exhibit I.

Annual Financial Information Disclosure means the dissemination of disclosure concerning Annual Financial Information and the dissemination of the Audited Financial Statements as set forth in Section 4.

Audited Financial Statements means the audited financial statements of the Village prepared pursuant to the standards and as described in Exhibit I.

* Preliminary; subject to change.

D-1

Commission means the Securities and Exchange Commission.

Dissemination Agent means any agent designated as such in writing by the Village and which has filed with the Village a written acceptance of such designation, and such agent’s successors and assigns.

EMMA means the MSRB through its Electronic Municipal Market Access system for municipal securities disclosure or through any other electronic format or system prescribed by the MSRB for purposes of the Rule.

Exchange Act means the Securities Exchange Act of 1934, as amended.

MSRB means the Municipal Securities Rulemaking Board.

Official Statement means the Final Official Statement, dated October __, 2017, and relating to the Bonds.

Participating Underwriter means each broker, dealer or municipal securities dealer acting as an underwriter in the primary offering of the Bonds.

Reportable Event means the occurrence of any of the Events with respect to the Bonds set forth in Exhibit II.

Reportable Events Disclosure means dissemination of a notice of a Reportable Event as set forth in Section 5.

Rule means Rule 15c2-12 adopted by the Commission under the Exchange Act, as the same may be amended from time to time.

State means the State of Illinois.

Undertaking means the obligations of the Village pursuant to Sections 4 and 5.

3. CUSIP NUMBERS. The CUSIP Numbers of the Bonds are set forth in Exhibit III. The Village will include the CUSIP Numbers in all disclosure materials described in Sections 4 and 5 of this Agreement.

4. ANNUAL FINANCIAL INFORMATION DISCLOSURE. Subject to Section 8 of this Agreement, the Village hereby covenants that it will disseminate its Annual Financial Information and its Audited Financial Statements (in the form and by the dates set forth in Exhibit I) to EMMA 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 and by such time so that such entities receive the information by the dates specified. MSRB Rule G-32 requires all EMMA filings to be in word-searchable PDF format. This requirement extends to all documents to be filed with EMMA, including financial statements and other externally prepared reports.

D-2

If any part of the Annual Financial Information can no longer be generated because the operations to which it is related have been materially changed or discontinued, the Village will disseminate a statement to such effect as part of its Annual Financial Information for the year in which such event first occurs.

If any amendment or waiver is made to this Agreement, the Annual Financial Information for the year in which such amendment or waiver is made (or in any notice or supplement provided to EMMA) shall contain a narrative description of the reasons for such amendment or waiver and its impact on the type of information being provided.

5. REPORTABLE EVENTS DISCLOSURE. Subject to Section 8 of this Agreement, the Village hereby covenants that it will disseminate in a timely manner (not in excess of ten business days after the occurrence of the Reportable Event) Reportable Events Disclosure to EMMA in such manner and format and accompanied by identifying information as is prescribed by the MSRB or the Commission at the time of delivery of such information. MSRB Rule G-32 requires all EMMA filings to be in word-searchable PDF format. This requirement extends to all documents to be filed with EMMA, including financial statements and other externally prepared reports. Notwithstanding the foregoing, notice of optional or unscheduled redemption of any Bonds or defeasance of any Bonds need not be given under this Agreement any earlier than the notice (if any) of such redemption or defeasance is given to the Bondholders pursuant to the Ordinance.

6. CONSEQUENCES OF FAILURE OF THE VILLAGE TO PROVIDE INFORMATION. The Village shall give notice in a timely manner to EMMA of any failure to provide Annual Financial Information Disclosure when the same is due hereunder.

In the event of a failure of the Village to comply with any provision of this Agreement, the beneficial owner of any Bond may seek mandamus or specific performance by court order, to cause the Village to comply with its obligations under this Agreement. A default under this Agreement shall not be deemed a default under the Ordinance, and the sole remedy under this Agreement in the event of any failure of the Village to comply with this Agreement shall be an action to compel performance.

7. AMENDMENTS; WAIVER. Notwithstanding any other provision of this Agreement, the Village by resolution or ordinance authorizing such amendment or waiver, may amend this Agreement, and any provision of this Agreement may be waived, if:

(a) (i) The amendment or waiver is made in connection with a change in circumstances that arises from a change in legal requirements, including without limitation, pursuant to a “no-action” letter issued by the Commission, a change in law, or a change in the identity, nature, or status of the Village, or type of business conducted; or

(ii) This Agreement, 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

D-3

(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 Village (such as Bond Counsel).

In the event that the Commission or the MSRB or other regulatory authority shall approve or require Annual Financial Information Disclosure or Reportable Events Disclosure to be made to a central post office, governmental agency or similar entity other than EMMA or in lieu of EMMA, the Village shall, if required, make such dissemination to such central post office, governmental agency or similar entity without the necessity of amending this Agreement.

8. TERMINATION OF UNDERTAKING. The Undertaking of the Village shall be terminated hereunder if the Village shall no longer have any legal liability for any obligation on or relating to repayment of the Bonds under the Ordinance. The Village shall give notice to EMMA in a timely manner if this Section is applicable.

9. DISSEMINATION AGENT. The Village may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Agreement, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent.

10. ADDITIONAL INFORMATION. Nothing in this Agreement shall be deemed to prevent the Village from disseminating any other information, using the means of dissemination set forth in this Agreement or any other means of communication, or including any other information in any Annual Financial Information Disclosure or notice of occurrence of a Reportable Event, in addition to that which is required by this Agreement. If the Village chooses to include any information from any document or notice of occurrence of a Reportable Event in addition to that which is specifically required by this Agreement, the Village shall have no obligation under this Agreement to update such information or include it in any future disclosure or notice of occurrence of a Reportable Event.

11. BENEFICIARIES. This Agreement has been executed in order to assist the Participating Underwriters in complying with the Rule; however, this Agreement shall inure solely to the benefit of the Village, the Dissemination Agent, if any, and the beneficial owners of the Bonds, and shall create no rights in any other person or entity.

12. RECORDKEEPING. The Village shall maintain records of all Annual Financial Information Disclosure and Reportable Events Disclosure, including the content of such disclosure, the names of the entities with whom such disclosure was filed and the date of filing such disclosure.

13. ASSIGNMENT. The Village shall not transfer its obligations under the Ordinance unless the transferee agrees to assume all obligations of the Village under this Agreement or to execute an Undertaking under the Rule.

D-4

14. GOVERNING LAW. This Agreement shall be governed by the laws of the State.

VILLAGE OF ROSEMONT, COOK COUNTY, ILLINOIS

______Its: Mayor Date: November __, 2017

D-5

EXHIBIT I ANNUAL FINANCIAL INFORMATION AND TIMING AND AUDITED FINANCIAL STATEMENTS

Annual Financial Information means information of the type included in the Official Statement as follows:

•Statements of Revenues and Expenses of Proprietary Funds• •Village Equalized Assessed Valuation and Tax Rates• •Village Tax Extensions and Collections• •TIF Initial Values, Current Values and Incremental Values• •Representative Tax Rates in Leyden Township• •Representative Tax Rates in Maine Township• •Largest Taxpayers• •Hotel Tax • •Sales Tax • •Direct and Overlapping General Obligation Bonded Debt (but only with respect to direct general obligation debt of the Village)• •Other General Obligation Indebtedness• •Schedule of General Obligation Debt Service•

All or a portion of the Annual Financial Information and the Audited Financial Statements as set forth below may be included by reference to other documents which have been submitted to EMMA or filed with the Commission. If the information included by reference is contained in a Final Official Statement, the Final Official Statement must be available on EMMA; the Final Official Statement need not be available from the Commission. The Village shall clearly identify each such item of information included by reference.

Annual Financial Information exclusive of Audited Financial Statements will be submitted to EMMA by 210 days after the last day of the Village’s fiscal year (currently December 31). Audited Financial Statements as described below should be filed at the same time as the Annual Financial Information. If Audited Financial Statements are not available when the Annual Financial Information is filed, unaudited financial statements shall be included.

Audited Financial Statements will be prepared in accordance with the accounting principles described in the Official Statement. Audited Financial Statements will be submitted to EMMA within 30 days after availability to the Village.

If any change is made to the Annual Financial Information as permitted by Section 4 of the Agreement, the Village will disseminate a notice of such change as required by Section 4.

D-6

EXHIBIT II EVENTS WITH RESPECT TO THE BONDS FOR WHICH REPORTABLE EVENTS DISCLOSURE IS REQUIRED

1. Principal and interest payment delinquencies 2. Non-payment related defaults, if material 3. Unscheduled draws on debt service reserves reflecting financial difficulties 4. Unscheduled draws on credit enhancements reflecting financial difficulties 5. Substitution of credit or liquidity providers, or their failure to perform 6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security 7. Modifications to the rights of security holders, if material 8. Bond calls, if material, and tender offers 9. Defeasances 10. Release, substitution or sale of property securing repayment of the securities, if material 11. Rating changes 12. Bankruptcy, insolvency, receivership or similar event of the Village∗ 13. The consummation of a merger, consolidation, or acquisition involving the Village or the sale of all or substantially all of the assets of the Village, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material 14. Appointment of a successor or additional trustee or the change of name of a trustee, if material

∗ This event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the Village in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the Village, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the Village.

D-7

EXHIBIT III CUSIP NUMBERS

MATURITY DATE CUSIP NUMBER (DECEMBER 1) (BASE 777543)

D-8

APPENDIX E

SPECIMEN MUNICIPAL BOND INSURANCE POLICY

[THIS PAGE INTENTIONALLY LEFT BLANK] MUNICIPAL BOND INSURANCE POLICY

ISSUER: [NAME OF ISSUER] Policy No: _____

MEMBER: [NAME OF MEMBER]

BONDS: $______in aggregate principal Effective Date: ______amount of [NAME OF TRANSACTION] [and maturing on] Risk Premium: $______Member Surplus Contribution: $ ______Total Insurance Payment: $______

BUILD AMERICA MUTUAL ASSURANCE COMPANY (“BAM”), for consideration received, hereby UNCONDITIONALLY AND IRREVOCABLY agrees to pay to the trustee (the “Trustee”) or paying agent (the “Paying Agent”) for the Bonds named above (as set forth in the documentation providing for the issuance and securing of the Bonds), for the benefit of the Owners or, at the election of BAM, directly to each Owner, subject only to the terms of this Policy (which includes each endorsement hereto), that portion of the principal of and interest on the Bonds that shall become Due for Payment but shall be unpaid by reason of Nonpayment by the Issuer.

On the later of the day on which such principal and interest becomes Due for Payment or the first Business Day following the Business Day on which BAM shall have received Notice of Nonpayment, BAM will disburse (but without duplication in the case of duplicate claims for the same Nonpayment) to or for the benefit of each Owner of the Bonds, the face amount of principal of and interest on the Bonds that is then Due for Payment but is then unpaid by reason of Nonpayment by the Issuer, but only upon receipt by BAM, in a form reasonably satisfactory to it, of (a) evidence of the Owner’s right to receive payment of such principal or interest then Due for Payment and (b) evidence, including any appropriate instruments of assignment, that all of the Owner’s rights with respect to payment of such principal or interest that is Due for Payment shall thereupon vest in BAM. A Notice of Nonpayment will be deemed received on a given Business Day if it is received prior to 1:00 p.m. (New York time) on such Business Day; otherwise, it will be deemed received on the next Business Day. If any Notice of Nonpayment received by BAM is incomplete, it shall be deemed not to have been received by BAM for purposes of the preceding sentence, and BAM shall promptly so advise the Trustee, Paying Agent or Owner, as appropriate, any of whom may submit an amended Notice of Nonpayment. Upon disbursement under this Policy in respect of a Bond and to the extent of such payment, BAM shall become the owner of such Bond, any appurtenant coupon to such Bond and right to receipt of payment of principal of or interest on such Bond and shall be fully subrogated to the rights of the Owner, including the Owner’s right to receive payments under such Bond. Payment by BAM either to the Trustee or Paying Agent for the benefit of the Owners, or directly to the Owners, on account of any Nonpayment shall discharge the obligation of BAM under this Policy with respect to said Nonpayment.

Except to the extent expressly modified by an endorsement hereto, the following terms shall have the meanings specified for all purposes of this Policy. “Business Day” means any day other than (a) a Saturday or Sunday or (b) a day on which banking institutions in the State of New York or the Insurer’s Fiscal Agent (as defined herein) are authorized or required by law or executive order to remain closed. “Due for Payment” means (a) when referring to the principal of a Bond, payable on the stated maturity date thereof or the date on which the same shall have been duly called for mandatory sinking fund redemption and does not refer to any earlier date on which payment is due by reason of call for redemption (other than by mandatory sinking fund redemption), acceleration or other advancement of maturity (unless BAM shall elect, in its sole discretion, to pay such principal due upon such acceleration together with any accrued interest to the date of acceleration) and (b) when referring to interest on a Bond, payable on the stated date for payment of interest. “Nonpayment” means, in respect of a Bond, the failure of the Issuer to have provided sufficient funds to the Trustee or, if there is no Trustee, to the Paying Agent for payment in full of all principal and interest that is Due for Payment on such Bond. “Nonpayment” shall also include, in respect of a Bond, any payment made to an Owner by or on behalf of the Issuer of principal or interest that is Due for Payment, which payment has been recovered from such Owner pursuant to the United States Bankruptcy Code in accordance with a final, nonappealable order of a court having competent jurisdiction. “Notice” means delivery to BAM of a notice of claim and certificate, by certified mail, email or telecopy as set forth on the attached Schedule or other acceptable electronic delivery, in a form satisfactory to BAM, from and signed by an Owner, the Trustee or the Paying Agent, which notice shall specify (a) the person or entity making the claim, (b) the Policy Number, (c) the claimed amount, (d) payment instructions and (e) the date such claimed amount becomes or became Due for Payment. “Owner” means, in respect of a Bond, the person or entity who, at the time of Nonpayment, is entitled under the terms of such Bond to payment thereof, except that “Owner” shall not include the Issuer, the Member or any other person or entity whose direct or indirect obligation constitutes the underlying security for the Bonds.

E-1

BAM may appoint a fiscal agent (the “Insurer’s Fiscal Agent”) for purposes of this Policy by giving written notice to the Trustee, the Paying Agent, the Member and the Issuer specifying the name and notice address of the Insurer’s Fiscal Agent. From and after the date of receipt of such notice by the Trustee, the Paying Agent, the Member or the Issuer (a) copies of all notices required to be delivered to BAM pursuant to this Policy shall be simultaneously delivered to the Insurer’s Fiscal Agent and to BAM and shall not be deemed received until received by both and (b) all payments required to be made by BAM under this Policy may be made directly by BAM or by the Insurer’s Fiscal Agent on behalf of BAM. The Insurer’s Fiscal Agent is the agent of BAM only, and the Insurer’s Fiscal Agent shall in no event be liable to the Trustee, Paying Agent or any Owner for any act of the Insurer’s Fiscal Agent or any failure of BAM to deposit or cause to be deposited sufficient funds to make payments due under this Policy.

To the fullest extent permitted by applicable law, BAM agrees not to assert, and hereby waives, only for the benefit of each Owner, all rights (whether by counterclaim, setoff or otherwise) and defenses (including, without limitation, the defense of fraud), whether acquired by subrogation, assignment or otherwise, to the extent that such rights and defenses may be available to BAM to avoid payment of its obligations under this Policy in accordance with the express provisions of this Policy. This Policy may not be canceled or revoked.

This Policy sets forth in full the undertaking of BAM and shall not be modified, altered or affected by any other agreement or instrument, including any modification or amendment thereto. Except to the extent expressly modified by an endorsement hereto, any premium paid in respect of this Policy is nonrefundable for any reason whatsoever, including payment, or provision being made for payment, of the Bonds prior to maturity. THIS POLICY IS NOT COVERED BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND SPECIFIED IN ARTICLE 76 OF THE NEW YORK INSURANCE LAW. THIS POLICY IS ISSUED WITHOUT CONTINGENT MUTUAL LIABILITY FOR ASSESSMENT.

In witness whereof, BUILD AMERICA MUTUAL ASSURANCE COMPANY has caused this Policy to be executed on its behalf by its Authorized Officer.

BUILD AMERICA MUTUAL ASSURANCE COMPANY

By: ______Authorized Officer

E-2

Notices (Unless Otherwise Specified by BAM)

Email: [email protected] Address: 1 World Financial Center, 27th floor 200 Liberty Street New York, New York 10281 Telecopy: 212-962-1524 (attention: Claims)

E-3 [THIS PAGE INTENTIONALLY LEFT BLANK]

Village of Rosemont, Cook County, Illinois • General Obligation Corporate Purpose Refunding Bonds, Series 2017