public building commission of peoria

Transcription

New Issue
Not Bank Qualified
Book-Entry Only
Insured Investment Rating:
Standard & Poor’s … AAA (negative outlook)
(Assured Guaranty Insured)
Underlying Investment Rating:
Standard & Poor’s … A+
Final Official Statement Dated December 17, 2009
Interest on the Bonds is includible in gross income of the owners thereof for federal income tax purposes. Interest on the Bonds is not exempt from present State of Illinois
income taxes. See “TAX MATTERS” herein for a more complete discussion.
$30,200,000
PUBLIC BUILDING COMMISSION OF PEORIA
Peoria County, Illinois
(Board of Education of the City of Peoria, School District Number 150 Project)
Taxable School District Facilities Revenue Bonds, Series 2009C
(Lincoln Middle and Peoria High Schools Project)
(Build America Bonds – Direct Payment to Issuer)
Dated as of Date of Delivery
Book-Entry
Due December 1, 2024-2029
The $30,200,000 Taxable School District Facilities Revenue Bonds, Series 2009C (Lincoln Middle and Peoria High Schools Project) (Build America Bonds – Direct Payment
to Issuer) (the “Bonds”) are being issued by the Public Building Commission of Peoria, Peoria County, Illinois (the “Commission”). Interest is payable semiannually on June 1 and
December 1 of each year, commencing December 1, 2010. The Bonds will be issued using a book-entry system. The Depository Trust Company (“DTC”), New York, New York, will
act as securities depository for the Bonds. The ownership of one fully registered Bond for each maturity will be registered in the name of Cede & Co., as nominee for DTC and no
physical delivery of Bonds will be made to purchasers. The Bonds will mature on December 1, as described herein. Interest is calculated based on a 360-day year of twelve 30-day
months.
AMOUNTS, MATURITIES, INTEREST RATES, YIELDS AND CUSIP NUMBERS
Principal
Due
Dec. 1
Amount
$2,200,000* ............2024
2,000,000 .............2025
2,800,000 .............2026
Interest
Rate
6.040%
6.140%
6.240%
Yield
6.040%
6.140%
6.240%
CUSIP
Number
71323M DC3
71323M DD1
71323M DE9
Principal
Due
Amount
Dec. 1
$ 3,700,000 ...2027
4,500,000 ...2028
15,000,000 ...2029
Interest
Rate
6.340%
6.530%
6.580%
Yield
6.340%
6.530%
6.580%
CUSIP
Number
71323M DF6
71323M DG4
71323M DH2
*A portion of the December 1, 2024 maturity in the amount of $325,000 is not Build America Bonds.
OPTIONAL REDEMPTION
Bonds callable in whole or in part on any date on or after December 1, 2019, at a price of par and accrued interest. If less than all the Bonds are called, they shall be redeemed
in such principal amounts and from such maturities as determined by the Commission and within any maturity by lot. See “OPTIONAL REDEMPTION” herein.
BOND INSURANCE
The scheduled payment of principal of and interest on the Bonds when due will be guaranteed under a financial guaranty insurance policy to be issued concurrently with the
delivery of the Bonds by Assured Guaranty Corp. (“Assured Guaranty”). See APPENDIX C herein. The cost for the bond insurance premium and the related rating fee of Standard
& Poor’s will be paid by the Commission.
PURPOSE, LEGALITY AND SECURITY
Bond proceeds will be used by the Commission to acquire and improve school sites, build and equip school buildings and build and equip additions to and alter, repair and
equip the existing Lincoln Middle School and Peoria High School Buildings in and for the Board of Education of the City of Peoria, School District Number 150, Peoria County, Illinois
(the “District”). See “THE PROJECT” herein. The remaining bond proceeds will be used to pay a portion of the interest on the Bonds through December 1, 2011, to make a deposit to
the Debt Service Reserve Fund, and to pay the costs of issuance of the Bonds.
THE COMMISSION HAS NO POWER TO LEVY TAXES. THE PRINCIPAL AND INTEREST OF THE BONDS IS PAYABLE SOLELY FROM THE NET
REVENUES DERIVED FROM THE OPERATION, MANAGEMENT OR USE OF THE HEREINAFTER-DEFINED FACILITIES, INCLUDING LEASE RENTAL
PAYMENTS TO BE RECEIVED FROM THE DISTRICT. THE RENTALS DUE UNDER THE LEASE AGREEMENTS WITH RESPECT TO THE FACILITIES ARE A
GENERAL OBLIGATION OF THE DISTRICT FOR THE PAYMENT OF WHICH ITS FULL FAITH AND CREDIT ARE PLEDGED AND FOR WHICH A RESOLUTION
LEVYING CONTINUING AD VALOREM TAXES ON ALL TAXABLE PROPERTY IN THE DISTRICT WILL BE FILED WITH THE COUNTY CLERK OF THE COUNTY
PRIOR TO THE DELIVERY OF THE BONDS. THE BONDS ARE BEING ISSUED ON A PARITY WITH THE COMMISSION’S OUTSTANDING SCHOOL DISTRICT
FACILITIES CAPITAL APPRECIATION REVENUE BONDS, SERIES 2008A (RICHWOODS PROJECT) (THE “2008A BONDS”), SCHOOL DISTRICT FACILITIES
CAPITAL APPRECIATION REVENUE BONDS, SERIES 2009A (GLEN OAK PROJECT) (THE “2009A BONDS”) AND SCHOOL DISTRICT FACILITIES CAPITAL
APPRECIATION REVENUE BONDS, SERIES 2009B (HARRISON PROJECT) (THE “2009B BONDS” AND, TOGETHER WITH THE 2008A BONDS AND 2009A BONDS,
THE “PRIOR BONDS”), TO THE EXTENT THE PRIOR BONDS AND THE BONDS ARE PAYABLE FROM CERTAIN OF THE ANNUAL RENTALS DUE UNDER THE
LEASE AGREEMENTS. AS ADDITIONAL SECURITY FOR THE PAYMENT OF THE BONDS, THE COMMISSION HAS PLEDGED THE HEREINAFTER-DEFINED
BUILD AMERICA PAYMENTS TO THE PAYMENTS OF THE PRINCIPAL OF AND INTEREST ON THE BONDS.
The Bonds are offered when, as and if issued and received by the Underwriters, subject to the approving legal opinion of Chapman and Cutler LLP, Chicago, Illinois, Bond
Counsel, and certain other conditions. Certain legal matters will be passed upon for the Commission by Davis & Campbell LLC, Peoria, Illinois, for the District by Kavanagh, Scully,
Sudow, White & Frederick, P.C., Peoria, Illinois, and for the Underwriters by Barnes & Thornburg LLP, Indianapolis, Indiana. It is expected that the Bonds will be made available for
delivery on or about December 29, 2009.
Mesirow Financial, Inc.
Edward D. Jones & Co., L.P.
BMO Capital Markets GKST Inc.
Bank of America Merrill Lynch
Public Building Commission of Peoria, Peoria County, Illinois
$30,200,000 Taxable School District Facilities Revenue Bonds, Series 2009C (Lincoln Middle and Peoria High Schools Project) (Build America Bonds – Direct Payment to Issuer)
No dealer, broker, salesman or other person has been authorized by the Commission, the District or the Underwriters to
give any information or to make any representations with respect to the Bonds other than as contained in the Official Statement or
the Final Official Statement and, if given or made, such other information or representations must not be relied upon as having been
authorized by the Commission, the District or the Underwriters. Certain information contained in the Official Statement and the
Final Official Statement may have been obtained from sources other than records of the Commission or the District and, while
believed to be reliable, is not guaranteed as to completeness. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE
OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE
DELIVERY OF THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER
EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE
AFFAIRS OF THE COMMISSION OR THE DISTRICT SINCE THE RESPECTIVE DATES THEREOF.
References herein to laws, rules, regulations, ordinances, resolutions, agreements, reports and other documents do not
purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference to the
particular document, the full text of which may contain qualifications of and exceptions to statements made herein. Where full texts
have not been included as appendices to the Official Statement or the Final Official Statement they will be furnished on request.
This Final Official Statement does not constitute an offer to sell, or solicitation of an offer to buy, any securities to any person in
any jurisdiction where such offer or solicitation of such offer would be unlawful.
This Final Official Statement should be considered in its entirety and no one factor considered less important than any
other by reason of its position in this Final Official Statement. Where statutes, reports or other documents are referred to herein,
reference should be made to such statutes, reports or other documents for more complete information regarding the rights and
obligations of parties thereto, facts and opinions contained therein and the subject matter thereof.
Any statements made in this Final Official Statement, including the Exhibits and 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 Final Official Statement contains certain forward-looking statements and
information that are based on the Commission’s or the District’s beliefs as well as assumptions made by and information currently
available to the Commission or the District. Such statements are subject to certain risks, uncertainties and assumptions. Should
one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary
materially from those anticipated, estimated or expected.
The Underwriters have reviewed the information in this Final Official Statement in accordance with, and as part of, their
responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the
Underwriters do not guarantee the accuracy or completeness of such information.
IN CONNECTION WITH THE OFFERING, THE UNDERWRITERS MAY OVERALLOT OR EFFECT
TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SECURITIES OFFERED
HEREBY AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH
STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS FINAL OFFICIAL STATEMENT. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
The tax advice contained in this Final Official Statement is not intended or written by the Commission, 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 Final 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.
Assured Guaranty makes no representation regarding the Bonds or the advisability of investing in the Bonds. In addition,
Assured Guaranty has not independently verified, makes no representation regarding, and does not accept any responsibility for the
accuracy or completeness of this Final Official Statement or any information or disclosure contained herein, or omitted herefrom,
other than with respect to the accuracy of the information regarding Assured Guaranty supplied by Assured Guaranty and presented
under the heading “APPENDIX C - BOND INSURANCE AND SPECIMEN BOND INSURANCE POLICY”.
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BOND ISSUE SUMMARY
This Bond Issue Summary is expressly qualified by the entire Final Official Statement, which is provided for the convenience of potential investors and which
should be reviewed in its entirety by potential investors.
Issuer:
Public Building Commission of Peoria, Peoria County, Illinois.
Issue:
$30,200,000 Taxable School District Facilities Revenue Bonds, Series 2009C
(Lincoln Middle and Peoria High Schools Project) (Build America Bonds – Direct Payment to Issuer).
Dated Date:
Date of delivery.
Interest Due:
Each June 1 and December 1, commencing December 1, 2010.
Principal Due:
Serially each December 1, commencing December 1, 2024 through 2029, as detailed on the front page of this Final Official
Statement.
Optional Redemption:
The Bonds are callable at the option of the Commission on December 1, 2019, or any date thereafter, at a price of par plus
accrued interest. See “OPTIONAL REDEMPTION” herein.
Security:
THE COMMISSION HAS NO POWER TO LEVY TAXES. THE PRINCIPAL AND INTEREST OF THE BONDS IS
PAYABLE SOLELY FROM THE NET REVENUES DERIVED FROM THE OPERATION, MANAGEMENT OR USE
OF THE HEREINAFTER-DEFINED FACILITIES, INCLUDING LEASE RENTAL PAYMENTS TO BE RECEIVED
FROM THE DISTRICT. THE RENTALS DUE UNDER THE LEASE AGREEMENTS WITH RESPECT TO THE
FACILITIES ARE A GENERAL OBLIGATION OF THE DISTRICT FOR THE PAYMENT OF WHICH ITS FULL
FAITH AND CREDIT ARE PLEDGED AND FOR WHICH A RESOLUTION LEVYING CONTINUING AD
VALOREM TAXES ON ALL TAXABLE PROPERTY IN THE DISTRICT WILL BE FILED WITH THE COUNTY
CLERK OF THE COUNTY PRIOR TO THE DELIVERY OF THE BONDS. THE BONDS ARE BEING ISSUED ON A
PARITY WITH THE COMMISSION’S OUTSTANDING SCHOOL DISTRICT FACILITIES CAPITAL
APPRECIATION REVENUE BONDS, SERIES 2008A (RICHWOODS PROJECT) (THE “2008A BONDS”), SCHOOL
DISTRICT FACILITIES CAPITAL APPRECIATION REVENUE BONDS, SERIES 2009A (GLEN OAK PROJECT)
(THE “2009A BONDS”) AND SCHOOL DISTRICT FACILITIES CAPITAL APPRECIATION REVENUE BONDS,
SERIES 2009B (HARRISON PROJECT) (THE “2009B BONDS” AND, TOGETHER WITH THE 2008A BONDS AND
2009A BONDS, THE “PRIOR BONDS”), TO THE EXTENT THE PRIOR BONDS AND THE BONDS ARE PAYABLE
FROM CERTAIN OF THE ANNUAL RENTALS DUE UNDER THE LEASE AGREEMENTS. AS ADDITIONAL
SECURITY FOR THE PAYMENT OF THE BONDS, THE COMMISSION HAS PLEDGED THE HEREINAFTERDEFINED BUILD AMERICA PAYMENTS TO THE PAYMENTS OF THE PRINCIPAL OF AND INTEREST ON THE
BONDS.
Bond Resolution:
The Resolution authorizing the issuing of the Bonds by the Public Building Commission of Peoria, Peoria County, Illinois,
adopted December 17, 2009 (the “Bond Resolution” or the “Resolution”).
Rating/Insurance:
Standard & Poor’s, a Division of the McGraw-Hill Companies is expected to assign their municipal bond rating of “AAA”
(negative outlook) to this issue of Bonds with the understanding that upon delivery of the Bonds, a policy guaranteeing the
payment when due of the principal of and interest on the Bonds will be issued by Assured Guaranty. See APPENDIX C herein.
The cost for the bond insurance premium and the related rating fee of Standard & Poor’s will be paid by the
Commission. The District’s outstanding general obligation rating is “A+” from Standard & Poor’s, a Division of the McGrawHill Companies.
Purpose:
Bond proceeds will be used by the Commission to acquire and improve school sites, build and equip school buildings and build
and equip additions to and alter, repair and equip the existing Lincoln Middle School and Peoria High School Buildings in and
for the Board of Education of the City of Peoria, School District Number 150, Peoria County, Illinois (the “District”). See
“THE PROJECT” herein. The remaining bond proceeds will be used to pay a portion of the interest on the Bonds through
December 1, 2011, to make a deposit to the Debt Service Reserve Fund, and to pay the costs of issuance of the Bonds.
Tax Matters:
Interest on the Bonds is includible in gross income of the owners thereof for federal income tax purposes. Interest on the Bonds
is not exempt from present State of Illinois income taxes. See “TAX MATTERS” herein for a more complete discussion. See
also APPENDIX D for a proposed form of Bond Counsel opinion.
Not Bank Qualified:
The Bonds are not “qualified tax-exempt obligations” under Section 265(b)(3) of the Internal Revenue Code of 1986, as
amended.
Bond Registrar/Paying Agent:
U.S. Bank National Association, Indianapolis, Indiana.
Delivery:
The Bonds are expected to be delivered on or about December 29, 2009.
Book-Entry Form:
The Bonds will be registered in the name of Cede & Co. as nominee for The Depository Trust Company (“DTC”), New York,
New York. DTC will act as securities depository of the Bonds. See APPENDIX B herein.
Local Counsel To the Commission:
Davis & Campbell LLC, Peoria, Illinois.
Local Counsel To the District:
Kavanagh, Scully, Sudow, White & Frederick, P.C., Peoria, Illinois.
Financial Advisor:
Speer Financial, Inc., Chicago, Illinois.
Underwriters:
Mesirow Financial, Inc., Chicago, Illinois, Edward D. Jones & Co., L.P., St. Louis, Missouri, BMO Capital Markets GKST
Inc., Chicago, Illinois and Bank of America Merrill Lynch, Chicago, Illinois.
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TABLE OF CONTENTS
THE COMMISSION....................................................................................................................... 6
THE PROJECT ............................................................................................................................. 7
GENERAL DESCRIPTION .............................................................................................................. 7
THE DISTRICT ............................................................................................................................ 8
Higher Education ........................................................................................................................ 9
Economic Profile and Development .................................................................................................10
Recreational Facilities..................................................................................................................11
Medical Institutions.....................................................................................................................12
Peoria Enterprise Zone.................................................................................................................12
Riverfront Development ...............................................................................................................13
Tax Increment Financing Districts ...................................................................................................14
Southtown TIF ..........................................................................................................................14
Midtown TIF ............................................................................................................................15
Central Business District TIF .........................................................................................................15
Hospitality Improvement Zone Redevelopment Area TIF .......................................................................15
Stadium TIF .............................................................................................................................15
Northside Riverfront TIF ..............................................................................................................15
Campustown TIF........................................................................................................................16
Northside Business Park TIF .........................................................................................................16
Warehouse District TIF and Eagle View TIF ...................................................................................... 16
Warehouse District TIF .............................................................................................................16
Eagle View TIF ......................................................................................................................16
Renaissance Park........................................................................................................................17
Targeted Growth Area .................................................................................................................17
Other Development .....................................................................................................................17
Transportation ...........................................................................................................................17
Interstate 74 Upgrade ..................................................................................................................18
SOCIOECONOMIC INFORMATION ................................................................................................18
Employment .............................................................................................................................18
Unemployment Rates...................................................................................................................20
Commerce................................................................................................................................20
Housing...................................................................................................................................21
Growth in the Tax Base................................................................................................................21
Income ....................................................................................................................................22
DISTRICT DEBT INFORMATION ...................................................................................................23
PROPERTY ASSESSMENT AND TAX INFORMATION .......................................................................24
REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES ..................................26
Tax Levy and Collection Procedures ................................................................................................26
Exemptions...............................................................................................................................26
Truth in Taxation Law .................................................................................................................28
DISTRICT FINANCIAL INFORMATION...........................................................................................28
Budgets and Budgetary Accounting ..................................................................................................28
No Consent or Updated Information Requested of the Auditor .................................................................29
Financial Summaries ...................................................................................................................29
PENSION AND RETIREMENT OBLIGATIONS ..................................................................................32
REGISTRATION, TRANSFER AND EXCHANGE ...............................................................................32
THE LEASE AGREEMENT............................................................................................................ 32
Completion of Facilities and Rentals ................................................................................................33
Rental Amounts .........................................................................................................................33
Operation and Maintenance of the Facilities .......................................................................................33
Lease Noncancelable ...................................................................................................................34
Insurance .................................................................................................................................34
4
THE BOND RESOLUTION ............................................................................................................34
Flow of Funds..............................................................................................................................34
Revenue Fund ...........................................................................................................................34
Operating and Maintenance Account ................................................................................................35
Bond and Interest Account (Series 2008A Bonds (Richwoods Project)).......................................................35
Bond and Interest Account (Series 2009A Bonds (Glen Oak Project)).........................................................35
Bond and Interest Account (Series 2009B Bonds (Harrison Project))..........................................................35
Bond and Interest Account (Series 2009C Bonds (Lincoln Middle and Peoria High Schools Project)) ..................35
Bond Reserve Account .................................................................................................................35
Major Repairs and Replacement Account...........................................................................................36
Surplus Revenue Account .............................................................................................................36
Defeasance of Bonds ......................................................................................................................36
Depositary and Investments ..............................................................................................................36
Additional Bonds ..........................................................................................................................37
General Covenants.........................................................................................................................37
Covenant to Charge Sufficient Rates ................................................................................................37
Accounts and Audits....................................................................................................................37
Resolution to be a Contract ...........................................................................................................37
TAX MATTERS .......................................................................................................................... 39
Taxable Bonds ...........................................................................................................................39
Build America Bonds...................................................................................................................39
Circular 230 .............................................................................................................................40
CONTINUING DISCLOSURE – THE COMMISSION AND THE DISTRICT...............................................40
THE UNDERTAKING...................................................................................................................40
Annual Financial Information Disclosure ...........................................................................................41
Material Events Disclosure............................................................................................................41
Consequences of Failure of the Commission or the District to Provide Information ........................................41
Amendment; Waiver ...................................................................................................................42
Termination of Undertaking...........................................................................................................42
Additional Information .................................................................................................................42
Dissemination of Information; Dissemination Agent .............................................................................42
OPTIONAL REDEMPTION ............................................................................................................43
LITIGATION ..............................................................................................................................43
FINAL OFFICIAL STATEMENT AUTHORIZATION ...........................................................................43
BOND INSURANCE RISK FACTORS ...............................................................................................43
INSURED INVESTMENT RATING ..................................................................................................44
UNDERLYING INVESTMENT RATING ...........................................................................................45
CERTAIN LEGAL MATTERS.........................................................................................................45
UNDERWRITING ........................................................................................................................45
FINANCIAL ADVISOR .................................................................................................................46
CERTIFICATION.........................................................................................................................46
APPENDIX A—Excerpts of Fiscal Year 2009 Audited Financial Statements
APPENDIX B—Describing Book-Entry-Only Issuance
APPENDIX C—Bond Insurance and Specimen Bond Insurance Policy
APPENDIX D—Proposed Form of Opinion of Bond Counsel
5
Board of Commissioners
Jay Goldstein
Chairman
Richard V. Laukitis
Vice Chairman
Kenneth L. Casper
Treasurer
Jerome Kolb
David R. Leitch
Brian J. Meginnes
Cleveland Thomas, Sr.
__________________________________
James C. Thornton
Executive Secretary
THE COMMISSION
The Public Building Commission of Peoria, Peoria County, Illinois (the “Commission”), is a municipal
corporation of the State of Illinois, duly organized and existing pursuant to the “Public Building Commission Act” (the
“Act”), approved July 5, 1955, as amended. The Commission is specifically authorized to borrow money from time to
time and in evidence thereof, to issue and sell its revenue bonds, whether original issues or refunding, to provide funds
for its purposes, including interest during the period of construction and architectural, engineering, legal and financial
expenses. The Bonds are declared by the Act to be negotiable instruments and are payable solely from the revenues
derived from the operation, management, or use of the public buildings and other facilities acquired and constructed
with the proceeds of the Bonds, including payments received through leases or other contracts. The Bonds are not an
indebtedness of the Commission within the meaning of any constitutional or statutory debt limit, nor can they be a
claim against any property of the Commission.
The Commission has been duly created under the provisions of the Act and will issue the Bonds, which will be
secured by a lease agreement with the Board of Education of the City of Peoria, School District Number 150, Peoria
County, Illinois (the “District”). The Commission is required by the Act to establish and fix rentals sufficient at all
times to pay the principal and interest of the Bonds as the same become due and payable, and to make all payments to
accounts created by the Bond Resolution.
The Act authorizes public building commissions to enter into leases with municipal corporations. Upon or
prior to the execution of the lease, the governing body of the governmental unit tenant must provide by appropriate
proceedings for the levy and collection of a direct annual tax sufficient to pay the annual rent payable under such lease
as and when it becomes due and payable. A certified copy of the lease and a certified copy of the tax levying
proceedings are filed in the office of the county clerk which constitutes the continuing authority for such county clerk to
extend the taxes necessary to pay the annual rent when it becomes due. A public hearing on the lease must be held by
the governmental unit tenant before taxes will be extended by the county clerk. The county clerk must ascertain
annually the rate of tax to produce the taxes in the amount of the annual rent. Such taxes shall be extended annually
during the term of the lease without further action by the tenant or the commission, and shall be extended and collected
with all other taxes of the governmental unit tenant and in addition to all of its other taxes. The Act specifically
provides that such tax shall not be subject to any statutory limitation as to rate but shall be in addition to and in excess
of all other rates. Funds realized from the tax levy for the payment of such annual rents shall not be disbursed for any
other purpose until the annual rent is paid in full. The Act authorizes lessees to pay additional annual amounts for
maintenance and operation and to include the same in their annual budget proceedings.
6
THE COMMISSION HAS NO POWER TO LEVY TAXES. THE PRINCIPAL AND INTEREST OF
THE BONDS IS PAYABLE SOLELY FROM THE NET REVENUES DERIVED FROM THE OPERATION,
MANAGEMENT OR USE OF THE HEREINAFTER-DEFINED FACILITIES, INCLUDING LEASE RENTAL
PAYMENTS TO BE RECEIVED FROM THE DISTRICT. THE RENTALS DUE UNDER THE LEASE
AGREEMENTS WITH RESPECT TO THE FACILITIES ARE A GENERAL OBLIGATION OF THE
DISTRICT FOR THE PAYMENT OF WHICH ITS FULL FAITH AND CREDIT ARE PLEDGED AND FOR
WHICH A RESOLUTION LEVYING CONTINUING AD VALOREM TAXES ON ALL TAXABLE
PROPERTY IN THE DISTRICT WILL BE FILED WITH THE COUNTY CLERK OF THE COUNTY PRIOR
TO THE DELIVERY OF THE BONDS. THE BONDS ARE BEING ISSUED ON A PARITY WITH THE
COMMISSION’S OUTSTANDING SCHOOL DISTRICT FACILITIES CAPITAL APPRECIATION REVENUE
BONDS, SERIES 2008A (RICHWOODS PROJECT) (THE “2008A BONDS”), SCHOOL DISTRICT
FACILITIES CAPITAL APPRECIATION REVENUE BONDS, SERIES 2009A (GLEN OAK PROJECT) (THE
“2009A BONDS”) AND SCHOOL DISTRICT FACILITIES CAPITAL APPRECIATION REVENUE BONDS,
SERIES 2009B (HARRISON PROJECT) (THE “2009B BONDS” AND, TOGETHER WITH THE 2008A
BONDS AND 2009A BONDS, THE “PRIOR BONDS”), TO THE EXTENT THE PRIOR BONDS AND THE
BONDS ARE PAYABLE FROM CERTAIN OF THE ANNUAL RENTALS DUE UNDER THE LEASE
AGREEMENTS.
AS ADDITIONAL SECURITY FOR THE PAYMENT OF THE BONDS, THE
COMMISSION HAS PLEDGED THE HEREINAFTER-DEFINED BUILD AMERICA PAYMENTS TO THE
PAYMENTS OF THE PRINCIPAL OF AND INTEREST ON THE BONDS.
THE PROJECT
A portion of the Bond proceeds will be used by the Commission to acquire and improve school sites, build and
equip school buildings and build and equip additions to and alter, repair and equip the existing Lincoln Middle School
and Peoria High School Buildings in and for the Board of Education of the City of Peoria, School District Number 150,
Peoria County, Illinois (the “District”).The remaining bond proceeds will be used to pay a portion of the interest on the
Bonds through December 1, 2011, to make a deposit to the Debt Service Reserve Fund, and to pay the costs of issuance
of the Bonds.
GENERAL DESCRIPTION
The Bonds will be dated their date of delivery, will be in fully registered form and will be in denominations of
principal amounts as set forth on the cover page or any integral multiple thereof, at maturity of $5,000 or any integral
multiple thereof. The principal and interest of the Bonds at maturity will be payable in lawful money of the United
States of America upon presentation and surrender of the Bonds at the principal corporate trust office of the Bond
Registrar.
7
CITY OF PEORIA, SCHOOL DISTRICT NUMBER 150
Board of Education
Debbie Wolfmeyer
President
Dr. David Gorenz
Rachael A. Parker
Linda Butler
Vice President
Laura Petelle
Martha M. Ross
Jim Stowell
__________________________________
Officials
Pam Schau
Comptroller - Treasurer
Dr. Norm Durflinger
Interim Superintendent
Dr. Herschel Hannah Ed. D.
Associate Superintendent
THE DISTRICT
The District is a special charter district which serves most of the City of Peoria (the “City”) along with a small
adjoining section on the City's west side. Seven members serve on the Board of Education which governs the District.
These seven members are elected from three districts and serve five-year staggered terms. Approximately 96% of the
District's assessed valuation is within the City. The District estimates that it serves a population of 114,000.
The District has 15 primary schools, nine middle schools, four senior high schools, one alternative high school,
one magnet school (K-8), one early education center, one gifted school (5-8), one adult education center, one
developmental center for profoundly handicapped students and one school for special education. In addition, the
District has many special programs. The District is in the midst of building and rehabilitating schools, along with
closing schools, in order to best serve its students, given its economic resources.
On August 25, 1993, the Valeska Hinton Early Childhood Education Center was opened in Southtown for 270
children aged 3 years through the 1st grade of school. This center is one of the most innovative in the country,
providing a three-prong approach for developing childhood learning skills. The comprehensive program teaches good
parenting skills for the enrollees' parents and incorporates health issues for preschool children. The center is also a
professional development site where other teachers in the District are trained.
8
Historical District Enrollment
October 1
Total
School Year
2004 ..................... 15,001
2005 ..................... 14,701
2006 ..................... 14,469
2007 ..................... 13,961
2008 ..................... 13,642
Projected District Enrollment
October 1
Total
School Year
2009 ..................... 13,709
2010 ..................... 13,368
2011 ..................... 13,514
2012 ..................... 13,405
2013 ..................... 13,256
The District School Board approved a recommendation on September 21, 2009 to close Woodruff High School
at the end of the 2009-2010 academic year in order to consolidate the District’s high schools and increase efficiency.
Attendance boundaries for each of the three remaining high schools will be redrawn to incorporate the student
population of the former Woodruff High School.
The District employs 1,255 full-time equivalent certified teachers and other professional staff and 878 full-time
and part-time additional operations, clerical, and non-certified personnel. Of the certified staff, all hold degrees
including nearly 42% of which are advanced degrees. The ratio of regular division students per certified staff member
is approximately 12 to 1. The ratio of special education students per certified staff member is less than 4 to 1, while
low incident handicap programs have a student ratio of approximately 3 to 1.
Employees of the District are represented by various collective bargaining unions. The Illinois Federation of
Teachers represents the teachers and educators of the District. The Illinois Federation of Teachers contract expired on
June 30, 2009. Negotiations on a new contract are ongoing. The Local 6099 represents paraprofessional, clerical and
cafeteria employees of the District and has a contract that expires June 30, 2011. The American Federation of State,
County and Municipal Employees represent transportation employees of the District with a contract expiring on June
30, 2012. The Local 8 Coordinating Council represents maintenance and operations employees of District with a
contract expiring on June 30, 2010. The District considers its general labor relations to be good, and there have been
no strikes or work stoppages in recent years.
Higher Education
The City is the home of Bradley University, a private university with nationally recognized graduate and
undergraduate programs in fields such as engineering and business. Bradley's Fall of 2008 enrollment was 5,873
consisting of 5,057 undergraduate and 798 graduate students. In the U.S. News and World Report Bradley University
was ranked as 6th among Midwestern comprehensive universities in America’s Best Colleges.
On April 27, 2007, Bradley University broke ground for the 130,000 square foot Markin Family Student
Recreation Center (the “Center”), which opened in November 2008. The Center includes four basketball courts for
intramural and recreational games, a championship basketball court, a 1/8-mile running/walking track, a climbing wall,
juice bar, indoor pool, weight room, exercise rooms, and other amenities. The University's Health Services are located
in the lower level, along with two labs to support the Department of Nursing.
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Illinois Central College (“ICC”), a junior college located in East Peoria, has a satellite campus in downtown
Peoria. In addition to typical college courses, ICC's downtown campus provides a full professional development
curriculum and houses major teleconference facilities. ICC completed the renovation of a vacant building in downtown
Peoria at a cost of $4.9 million during the mid-1990’s. This additional satellite campus facilitates those enrolled in the
health occupations and police and fire science curriculums. Additionally, ICC converted the State of Illinois former
George A. Zeller Mental Health Center into their northern campus. ICC’s current enrollment is 11,804 full-time and
part-time students. ICC employs 1,251 full and part-time personnel. In 2007, the City began meetings to facilitate
implementation of a new initiative called Peoria Promise. Peoria Promise provides an opportunity for qualifying City
high school graduates to receive a scholarship covering full time tuition and books utilized in securing a degree or
certificate at ICC. Peoria Promise aims to develop quality young professionals and retain them in this area.
The University of Illinois College of Medicine, Nursing and Public Health (Peoria Campus) is also located in
the City and enrolls approximately 156 students.
Eureka College, located 20 miles away in Eureka, Illinois, enrolls approximately 680.
Economic Profile and Development
Built on a base of heavy manufacturing and best known as the “home” of Caterpillar, Inc., (“Caterpillar”) the
City’s primary economic activity has long been associated with the manufacturing of earthmoving equipment, such as
Caterpillar and Komatsu-America International Co. Other prominent manufacturing firms in other industrial
classifications include Keystone Steel & Wire Company and O’Brien Steel.
Prior to the early 1970’s, Caterpillar and other related manufacturing businesses were the primary employment
base for the City. However, manufacturing has given way to the services and trade sectors such as health services,
insurance, retail and telemarketing. The City’s greatest area of diversification has been the medical and technical
fields, which provide more than two out of every three jobs.
The City has The National Center for Agriculture Research, USDA’s finest agricultural research lab, and
Biotechnology Research and Development Corporation, the first company in the United States to provide a link between
the private sector and the federal labs and resources.
Additionally, the City’s growth includes technology-based firms involved in direct marketing, insurance,
electronics, computer graphics, telecommunications and retail advertising. Included are companies such as Affina,
AT&T, Afni, Customer Development Corporation, Multi-Ad Services, Inc., Dynamic Graphics, Inc., and RLI Corp.
Northwoods Mall and the Shoppes at Grand Prairie lead the regional center for commerce and distribution.
Other major shopping centers include Campustown, Evergreen Square, Glen Hollow, Knoxville Square, MidTown
Plaza, Metro Center, Northpoint, Sheridan Village, Westlake, Prairie Point Shopping Center and Willow Knolls Court.
The Shoppes at Grand Prairie (the “Shoppes”), a 500,000 square-foot retail center, opened in 2003 and is anchored by
a Bergner’s and Dick’s Sporting Goods. Numerous restaurants, shops and big box stores are in the area surrounding
the Shoppes. Rave Motion Pictures opened an eighteen-screen theatre at the Shoppes.
A Super Wal-Mart opened in the autumn of 2003 and a Super Menard’s opened March 20, 2008 adjacent to the
Super Wal-Mart in Growth Cell 2, which is a targeted planning area of development within the City. Numerous
restaurants and outlots have been completed in this area as well.
In fiscal year 2007, the City looked at ways to redevelop the Central and Southern areas of the City and
determined that these areas would best be served by creation of two Tax Increment Financing Districts (“TIF”), the
Eagleview and Warehouse District TIFs. These TIFs were approved by the City Council in June of 2007 and are set to
spur additional development in the oldest areas of the City.
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In June of 2007, the City Council approved the Heart of Peoria Plan, which was created by Duany PlaterZyberk & Company in 2002. This planning document will shape the growth of the City’s downtown, West Main Street
and adjoining area.
In 2004, the City established a Medical/Technical District later renamed Renaissance Park. A collaboration
between Caterpillar, the University of Illinois College of Medicine, Bradley University, the National Center for
Agricultural Utilization and Research, Methodist Medical Center and OSF Saint Francis Medical Center (“OSF”), the
City and Peoria NEXT, Renaissance Park seeks to capture and cultivate the medical and technology research companies
born from the areas’ institutional partners. Peoria NEXT purchased two blocks along West Main Street and in
collaboration with Caterpillar, constructed a $13.6 million, 48,000 sq. ft. business incubator, the Peoria NEXT
Innovation Center, which will provide a location for start up medical and technical businesses to receive assistance and
eventually to expand into the community, thereby enhancing the economic impact for the City. The grand opening for
the Peoria NEXT Innovation Center was held in August 2007.
The City, through its Economic Development Department (the “Department”), provides loans to small
businesses in the City and provides its Private Activity Volume Cap funds to a first-time homebuyer program.
The Peoria Civic Center, which opened in 1982, has served as a catalyst for growth in the hotel, restaurant, and
retail industries. The Civic Center is a three-building complex including an Arena, Exhibit Hall and Theater. In 2005
the Civic Center began construction for a major expansion and renovation of the Exhibit Hall and Arena. This $55
million expansion increased the square footage of the Civic Center from 700,000 to 900,000 square feet. New
concessions and restrooms were added and existing facilities were upgraded. Currently operated by a private
management company (SMG), the Civic Center hosts sporting events, conventions, exhibits and a variety of performing
arts. The Civic Center is the home of the Rivermen hockey team. Hotel, restaurant and amusement (“HRA”) taxes are
collected by the City to provide for adequate funding of capital improvements of the Civic Center.
In November 1991, the Par-A-Dice Riverboat started operations on the Illinois River. The Par-A-Dice draws
thousands of tourists weekly with annual visitor counts of approximately 1.3 million admissions (2006 through 2008).
Through an inter-governmental agreement with the City of East Peoria, the City is sharing the gaming proceeds from
the boat. This revenue sharing has not only resulted in a new revenue source, which the City has dedicated primarily to
debt service payments on the construction of a new police building and other capital projects, but it has also generated
increased revenues from hotels, restaurants, parking, and other services that riverboat visitors patronize.
Within the next 10 years, a substantial investment will be made in over 8,000 acres within the City’s older
areas, to bring the combined sewer outlets into compliance with Illinois Environmental Protection Agency (“IEPA”)
and USEPA requirements. In 2007 the City invested $2.2 million to hire a consulting firm to create a long term control
plan, which was submitted December 1, 2008 per IEPA permit requirement. Once the plan is completed and approved
by IEPA and USEPA, the City will begin implementation. A total dollar amount for the implementation has not yet
been established.
Recreational Facilities
Pleasure Driveway and Park District of Peoria (the “Park District”), organized in 1894, was the first park
system formed in Illinois. The Park District’s boundaries encompass approximately 60 square miles in Peoria County
with park and open space holdings in the City, Peoria Heights and outlying townships of approximately 8,600 acres.
The Park District leases an additional 698 acres. Much of the land was acquired through matching grants from the
federal Land-Water-Conservation Fund, the Illinois Open Space Lands Acquisition and Development program and
many generous gifts and donations. The numerous facilities are located on 66 park sites and include 133 buildings
owned by the Park District and one that is leased.
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The River Plex, which opened August 6, 2001, is a public/private partnership among the Park District, the
City, OSF with contributions by the Bielfeldt Foundation. (Also see “Riverfront Development” herein). The facility is
owned and maintained by the Park District on land leased from the City. The multi-purpose activity arena is managed
and operated solely by the Park District and can be used for basketball, volleyball or tennis courts, an indoor soccer
facility or in-line hockey rink, golf hitting nets for lessons, special events or sports classes. OSF and the Park District
manage the Family Fitness and Wellness Center including the Family Aquatic Center, an indoor/outdoor pool. The
OSF Managed/Clinical Space provides clinical outpatient rehabilitation programs, wellness programs and classes. The
City provided land, parking areas and utilities/infrastructure.
According to the Park District it ranks first in the State and is one of the top public park systems in the nation
based on its ratio of open-space holdings to population. The Park District has been awarded the National Recreation
and Park Association’s Gold Medal Award twice and is also one of only eight Illinois park districts to be accredited as a
Distinguished Park District.
Medical Institutions
The City is considered the regional medical center for Central Illinois with four major hospitals, a Veterans
Administration Clinic (the “V.A. Clinic”), the University of Illinois Medical School (the “Medical School”), and
opening in the near future the Cancer Research Center. Both the V.A. Clinic and Medical School were constructed as
a result of the City's redevelopment initiative.
In 2006, OSF, located adjacent to Renaissance Park, began a $234 million expansion which is the largest in the
City’s history, adding 440,000 sq. ft. to their existing facility. Additionally, OSF recently completed a $34 million
1,800 car parking deck, a $2.6 million LifeFlight hanger at the City’s airport and a $4.3 million helipad at the hospital.
Methodist Medical Center announced plans for a $350 million two-phase replacement campus for its 350 bed
hospital. The new campus will replace outdated buildings with an all digital facility and will include 100% private
facilities.
Cullinan Medical I purchased property in Southtown for construction of a 100 bed long term acute center in the
heart of the City with overall private investment of approximately $18.9 million. Construction of this medical facility
began on March 26, 2008 and was recently completed and operation is expected to begin shortly. In addition, the City
anticipates that the facility will bring approximately 100 new jobs to the area.
During 2006, The Peoria Surgical Group began construction of a physician’s complex with a private investment
of $15 million. This complex is located on the University of Illinois College of Medicine Peoria (“UICOMP”) Campus
in the Southtown TIF district. (Also see Southtown TIF herein).
In mid-2007, development of a $12 million state-or-the-art Cancer Research Center, was announced. The
Cancer Research Center is currently in the fundraising stage and will also be located at the UICOMP Campus. (Also
see “Southtown TIF” herein.)
The City’s medical facilities are among the top twenty-five non-manufacturing employers in the area.
Peoria Enterprise Zone
Peoria’s Enterprise Zone is a specially designated area in which tax incentives and direct financial assistance
can be provided to firms locating in commercial/industrial areas adjacent to the Illinois River, Pioneer Industrial Park,
Mt. Hawley Industrial Park, West Main Street Corridor, and several parcels in the Targeted Growth Area.
The West Main Street corridor is being utilized to create a Medical/Technology District linking Methodist
Medical Center, OSF, University of Illinois School of Medicine, Bradley University, Caterpillar and the U.S.
Agricultural Lab.
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As an incentive to attract major projects to the City, the City expanded its Enterprise Zone six times during
2007. Major projects that were incentivized were the $25 million expansion at Junction City; the $6 million relocation
of the new Firefly battery facility; the new $18 million long term acute care facility; and a $10 million
retail/commercial development on the City’s north side. As a result, eligible firms are able to participate in a variety of
financial incentives designed to encourage businesses to locate or expand in the Enterprise Zone. City reports show
that in 2007, there were 105 development projects within Peoria’s Enterprise Zone and the area was expanded to 7.5
square miles. Private investment in the Enterprise Zone for 2007 totaled $58 million. This resulted in the creation
and/or retention of 1,295 jobs.
In 2008, the City completed one strategic expansion of the Enterprise Zone. The first expansion, approved in
the fall of 2008, consisted of 132 acres located within the City’s third Council District and included Metro Center,
Sheridan Village, Evergreen Shopping Center and the area which includes Schnucks grocery store.
A second expansion of the Enterprise Zone was approved in 2009 and consisted of 250 acres located within the
second and fourth Council Districts of the City. Now that the expansion has been approved, staff will meet with
developers to encourage development throughout this area.
Effective utilization of the City’s Designated Zone Organization (“DZO”) resulted in maximum potential tax
savings to Riverfront Peoria, the Peoria NEXT Innovation Center and the Peoria Riverfront Museum corporate
contributors.
Riverfront Development
Beginning in 1992, the City's downtown redevelopment efforts have focused on the revitalization of the
riverfront culminating in a united effort on the part of private developers, the Park District, the Economic Development
Council, and the City. Other significant contributions include pledged grants from Caterpillar and The Bielfeldt
Foundation. A minimum of $150 million in new commercial development is being generated by the Riverfront, which
includes Festival Park, One Technology Plaza, PMP Fermentation, Inc., Riverfront Village and Riverfront Landing.
Major development projects include the following:
The City and Lakeview Museum approved a redevelopment agreement for the Peoria Riverfront Museum
(“PRM”) and Caterpillar Visitor’s Center to be developed on the site of the former Sears Building. The total project
cost is estimated at $136 million. The $77 million PRM building will be over 86,000 sq. ft. and plans include galleries
devoted to fine arts, folk art and Central Illinois history, the IHSA Peak Performance Center, the first interpretive
center for the Illinois River, a hands-on gallery for tots and kids, a state-of-the-art planetarium and an IMAX theater.
A 132 underground car parking garage will connect the PRM with the Caterpillar Visitor’s Center allowing access to
the facilities year round without being affected by inclement weather. Related infrastructure improvements, street
upgrades and additional private and complementary uses are also planned for this 7.2-acre site along the Illinois River.
The County placed a referendum question on the spring 2009 ballot for a 0.25% sales tax to fund the museum project.
The referendum passed on April 7, 2009. The redevelopment agreement was extended from December 31, 2008 to
June 30, 2009 and the County is currently working in collaboration with the City and Caterpillar on the project and
construction has yet to begin but could commence as early as spring of 2010.
One Technology Plaza was developed with the cooperation of Prudential Cullinan Properties, Ltd., Clark
Engineers, the Community Career & Technology Center Corporation, Caterpillar, Illinois Central College and the City.
The structure includes the Workforce Development Center, Community Career & Technology Center, the Regional
Superintendent of School’s Technology and Training Center, over 120,000 square feet of other leaseable space and a
1,146 space parking garage completed in 1999. The City provided funding for the parking deck.
The Park District in cooperation with OSF completed construction of the River Plex, which opened in 2001.
The 115,000 square foot project includes an indoor and outdoor aquatic center, a clinical rehabilitation area, indoor
soccer field, basketball courts and wet/dry playground. The Bielfeldt Foundation contributed $5,000,000 to this
project. The City provided funding for parking and adjacent accessways.
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In 2000, 401 Water Street, formerly an abandoned warehouse, was renovated to accommodate residential loft
condos and mixed commercial/office/retail development. 401 Water is the first mixed use development in the Central
Business District.
The Gateway Building provides meeting rooms and activity space for public and private use. Funding was
provided by the City and a donation, in the amount of $1,200,000, by Caterpillar.
Other completed projects include the renovation of the Spirit of Peoria riverboat and Landings Entertainment
Center, Riverfront Visitors Center, and the downtown segment of the bicycle and walking trail.
Two pleasure boat marinas are included in the Riverfront area for transient boaters.
The Transit Center, a cooperative effort with the Greater Peoria Mass Transit District, resulted in the
construction of a permanent facility and bus transfer site. Citylink’s transit center transit center opened in fall 2003.
Tax Increment Financing Districts
The City has developed nine Tax Increment Financing Districts (each, a “TIF”). The TIFs help these areas
redevelop, and the value of these areas has gone up each year since the TIFs began. The redeveloped areas create jobs
and vitality in the districts.
Southtown TIF
The Southtown TIF was created in November 1978, expires in 2013 and covers 303 acres. It is bounded by
Kumpf Boulevard, Main Street, Martin Luther King, Jr. Drive, MacArthur Highway and Jefferson Street. The main
objectives are elimination of blight, total clearance and development of residential, office, industrial, institutional and
public facilities.
In 2006, the City entered into a contract with Spring Grove Construction Ltd., for Phase III, the final phase, of
the Spring Grove residential subdivision. This Phase will consist of construction of 8 new homes with market values of
between $130,000 and $250,000. This subdivision was a part of the original plan and was started in 1995.
The UICOMP, Nursing and Public Health (Peoria Campus) is also located in the City’s Southtown TIF and
enrolls approximately 50 students. In December of 2005, a group of area doctors signed a 50-year lease with the
UICOMP to operate a physician's building on the medical school campus. Approximately 40 doctors will invest more
than $15 million for a four- or five-story medical office on more than five acres at the UICOMP. The City assisted the
development by allocating $4 million in TIF funds for construction of a parking deck. As part of the plan for continued
growth, the new Peoria Cancer Research Center will be constructed adjacent to the UICOMP main campus. The
building will have two stories and provide parking for doctors and patients. The new facility will have 20,000 square
feet of office and laboratory space with 10,000 square feet on each floor. There will be laboratory and office space for
one professor, four associate professors and four assistant professionals as well as space for other research. The new
addition to the medical campus will unite patient care, basic science and the research that bridges them. The center will
encourage stronger ties among staff in different fields and disciplines by maintaining the college's traditional balance
between research and clinical activities. The development of the $12 million Cancer Research Center continues the
City’s role as hosting one of Illinois’ major medical complexes.
The City entered into a Purchase Option with Cullinan Medical I for their purchase of a 6 acre City-owned site
in the Southtown TIF, which will be utilized for construction of a Long Term Acute Care Center with anticipated
private investment of approximately $20 million. This project will bring 100 diverse new jobs to Southtown.
Other businesses and services located in the TIF are Caterpillar, CBT, CityScape Apartments, Cranes &
Equipment, First Capital Bank, HCH Administration, IL Assn. of Neurosurgery, Renal Care Center, Spring Grove
Residential, Staybridge Suites, Superior Consolidated, Technicraft, University of Illinois College of Medicine, Valley
Park Shopping Center, Valeska Hinton School, WW Grainger, Orthopedic Institute, Plattner Orthopedic, Kirby Risk
and American Red Cross, Great Plains Sports Medicine and Institute of Physical and Medical Rehabilitation.
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Midtown TIF
The Midtown Plaza TIF was created in March 1999, expires in 2022 and covers 9.5 acres. It is located on
Knoxville Avenue between Nebraska Avenue and Richmond Avenue. The main objectives are elimination of blight and
providing commercial business and service facilities.
Utilizing proceeds from TIF bonds, the City and the David Joseph Companies partnered to develop MidTown
Plaza. This shopping center, anchored by a 65,000 square foot Cub Food Store, was completed in 2002. An
additional 8,000 square feet of adjoining retail is also part of the MidTown development. The City coordinated the
acquisition of 63 separate parcels to complete this $15 million project. It is now open and operational. A new
restaurant has opened on one of MidTown’s outlots. Future developments include additional commercial
development.
Central Business District TIF
The Central Business District TIF was created in December 1986, expires in 2021 and covers 92 acres. It is
located in the Central Business District and Downtown portions of the Riverfront. The main objectives are eliminating
blight, revitaling the Downtown/Riverfront and providing parking and public improvements.
Demolition was completed on the former Sears building which will be home to a $120 million PRM building
and Caterpillar Visitor’s Center. This private investment will be assisted with $3.7 million in public dollars, which
have been utilized for property acquisition and infrastructure improvements. An upscale restaurant called the
Riverstation opened in the Central Business District. This restaurant brought about $80,000 in private investment, with
$150,000 in public investment. The City entered into a contract with Randolph and Associates for design of Water
Street and infrastructure improvements in conjunction with the Museum block.
Hospitality Improvement Zone Redevelopment Area TIF
The Hospitality Improvement Zone Redevelopment Area TIF was created in 2008 and expires in 2031. This
TIF encompasses part of downtown and is to be the site of a new hotel and rehabilitated Pere Marquette Hotel attached
to the Civic Center. The Hospitality Improvement Zone Business District will aid in redevelopment of this area of the
City. The additional hotel rooms are expected to be available in 2012.
Stadium TIF
The Stadium TIF was created in December 2000, expires in 2023 and covers 7.5 acres. It is bounded by
Jefferson Street, Oak Street, Adams Street and rear property lines of properties on the southwest side of Oak Street.
The main objectives are elimination of blight and development of a stadium.
In the fall of 2000, the City Council approved a development agreement for the construction of a new minor
league baseball stadium, to be located in the downtown area of the City, adjacent to the Riverfront and Southtown
Redevelopment areas. This private/public project resulted in the construction of a professional minor league stadium
providing many of the amenities of a major league stadium. Features include approximately 6,500 permanent seats and
approximately 1,000 lawn berm seats, as well as sixteen luxury suites in the upper level, covered concourse with
concession stands and restrooms, video board, and a playground area in the left field area. Opening day at O’Brien
Field was May 24, 2002.
Northside Riverfront TIF
The Northside Riverfront TIF was created in March 1995, expires in 2018 and covers 105 acres. It is located
on I-74 to Spring Street, between Adams and the Illinois River. The main objectives are to improve the overall
environment and rehabilitate and expand the PMP Fermentation Plant.
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This TIF is anchored by PMP Fermentation. This project consists of two plant buildings. Toward the end of
2006, one of its plant buildings closed due to competition within the global market. PMP Fermentation is currently
reviewing options for use of the empty building.
Campustown TIF
The Campustown TIF was created in December 1986, expires in 2009 and covers 13 acres. It is generally
bounded by Main Street, University Street and Bourland Avenue. The main objectives are to eliminate blight and
provide commercial and support facilities in close proximity to Bradley University.
Businesses and services located in the TIF are Blockbuster Videos, Bard Optical, Campustown Liquors, Check
Into Cash, Supreme Nails, Panda House, Bellacinos, The Hair Gallery Inc., Subway Sandwich Shop, H&R Block,
Cookies by Design, Co-op Records, Velvet Freeze, LaBamba Restaurant, Starbucks Coffeehouse and Steak & Fries.
Northside Business Park TIF
The Northside Business Park TIF was created in December 2000, expires in 2023 and covers 214 acres. It is
generally bounded by Jefferson Street, Spring Street, the Illinois River and Park Avenue. The main objectives are
elimination of blight, expansion of O’Brien Steel, installation of an S-Curve, elimination of Adams Street Row through
the Project Area and establishing two-way traffic on Jefferson Street through the Project Area plus establishment of a
delineation between industrial and residential uses and provision of commercial/retail opportunities.
O’Brien Steel purchased $1.6 million in processing equipment to expand its processing capabilities. Its
shipping area was expanded to Wisconsin during 2006. O’Brien Steel currently employs 160. O’Brien Steel
completed all of their development obligations and the City made its final TIF payment in 2009. The developer is
currently in negotiations with the City of construct a new manufacturing facility and warehouse that is estimated to
cost $15,000,000.
Warehouse District TIF and Eagle View TIF
In June of 2007, the City looked at ways to redevelop the Central and Southern areas of the City and
determined that these areas would best be served by creation of two TIFs, the Eagleview and Warehouse District TIFs.
These TIFs were approved by the City Council in June of 2007 and have already resulted significant redevelopment
with the signing of six new development agreements in the oldest areas of the City.
Warehouse District TIF
The Warehouse District TIF is south of downtown and encompasses approximately 215 acres and is a mixed
area of old industrial lofts, one story industrial buildings, and vacant lots. The City would like this area to be
developed as a vibrant mixed-use residential and commercial neighborhood. The City would also like the old industrial
lofts to be developed as condominiums similar to the successful development of the buildings on Water Street. The
street level space can become viable commercial and retail space. Artists and artisans have already located in this area.
Eagle View TIF
The Eagle View TIF encompasses over 544 acres, is bounded by the Illinois River, I-474 and Adams Street and
is adjacent to a large number of residential units. The plan proposes the Eagle View Biotech Park creating a large high
tech industrial park near Darst Street and Clark Street north of I-474. The plan also calls for a large conservation area
along the Illinois River, which is known for viewing eagles as well as for fishing and hiking.
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Renaissance Park
The City continues its efforts in creating Renaissance Park, a vibrant urban community that offers an abundance
of medical, technological and educational resources. Over the past year, Renaissance Park has seen the start and
completion of some key capital projects. Included in the area on the borders of Renaissance Park are the OSF St.
Francis Hospital project, the Methodist Medical Center project and the Illinois Medical Center medical office complex
project.
In addition, bordering the Renaissance Park on Main Street is Bradley University’s $100 million expansion of
its campus, including a new athletic fieldhouse and new Markin Family Student Recreation Center. Bradley is
contemplating adding a new performing arts center to the West Bluff. The Peoria NEXT Innovation Center is located
in the Main Street area. Additionally, in 2007, the City financed a $1.5M streetscape improvement for Columbia
Terrace – a crucial arterial road that connects five neighborhoods. The project will include new sidewalks, curbs and
gutters, landscaping and ornamental lighting. The Renaissance Park Commission continues its work on establishing a
special primary school that will focus on math, science and technology.
At the end of 2007, a prosthesis manufacturing company, Comprehensive Prosthetics and Orthotics Services
(“CPO”), purchased a building in Renaissance Park where they plan to invest $1.6 million in improvements to the
building and to create thirteen jobs.
Targeted Growth Area
The City has entered into intergovernmental agreements with the Greater Peoria Sanitary and Sewage Disposal
District and Peoria County for City financed sewer extensions and cooperative efforts relative to the planning and
permitting process in the Targeted Growth Area.
Planning efforts envision 800 acres of light industrial development, complemented by 472 acres of residential
development, for an area generally bounded by Illinois Route 6 and Allen Road. Immediate planning efforts are also
focused on the extension of Pioneer Parkway to connect with a proposed intersection at Illinois Route 6.
Current development activity in the growth cell along Allen Road includes a Super Menards, SUDS, and
Prairie Point Shopping Center. Additional road extensions and new streets are also under construction to accommodate
warehouse and industrial development adjacent to the new Wal-Mart.
Other Development
WeaverRidge, a 378-acre residential golf community, began operations and was recognized as the second best
new upscale public access daily fee course in the United States for 1998 by Golf Digest. Through establishment of a
special service area, the City and Weaver/Cullinan Residential, L.L.C. have produced a successful public-private
partnership.
Transportation
Highway transportation is provided by Illinois Routes 6, 8, 9, 26, 29, 40, 74, 89, 90, 91, 98 and 116; U.S.
Routes 24 and 150; and Interstates 39, 74, 155 and 474. The Greater Peoria Regional Airport, operated by the Greater
Peoria Regional Airport Authority (“GPRA”) (the “Airport”), provides 28 departures daily serving over 55,000
passengers annually. Three air cargo and package express services are available. The Airport serves as the largest
regional air hub outside of O’Hare International Airport and Midway Airport in Chicago, in terms of passenger flights
per day and runway size. The airport’s two runways are 10,104 feet and 8,000 feet in length. In Spring of 2008, the
Greater Peoria Regional Airport began construction of a $4 million relocation of the rent-a-car facility, which was
completed in September of 2008. The Airport recently began construction of a $52 million, 130,000 sq. ft. commercial
terminal facility and its anticipated completion is expected for the fall of 2010.
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In addition to the new construction, GPRA will be making $10 million in air-side capacity enhancements (taxiway improvements).
Mt. Hawley airport is another general aviation airport operated by the GPRA. Additional air facilities are
located at the Pekin airport. There are approximately 11 rail carriers and 48 motor carriers serving the City.
Interstate 74 Upgrade
Major upgrades to Interstate 74 began in 2002 and were completed in November of 2006. These upgrades
extended from Sterling Avenue on the west, to the Pinecrest Interchange on the east side of the Illinois River. The
upgrade included new entrance and exit ramps for the downtown area, removal, replacement or rehabilitation of all
existing bridges and new highway lighting. The cost of these major improvements was $460 million and is the largest
road construction project in Illinois outside of the Chicago area.
SOCIOECONOMIC INFORMATION
Located on the Illinois River, the District and the City are approximately the midway point between Chicago
and St. Louis. This location provides the City with excellent rail, truck, air and water transportation. The Peoria
Metropolitan Statistical Area (MSA), composed of Peoria, Tazewell and Woodford Counties, is the third largest
metropolitan area within the State. Approximately 96% of the District is located within the City. Therefore the
following information for the City is representative of the District.
Employment
The following tables show employment by industry and by occupation for the City, Peoria County and the
State of Illinois.
Employment by Industry(1)
The City
Number
Percent
Classification
Agriculture, Forestry, Fishing, Hunting,
and Mining.....................................
105
0.21%
Construction.................................... 2,033
4.08%
Manufacturing................................... 7,734
15.51%
Wholesale Trade................................. 1,281
2.57%
Retail Trade.................................... 5,776
11.58%
Transportation and Warehousing, and Utilities ... 1,642
3.29%
Information..................................... 1,406
2.82%
Finance, Insurance, Real Estate,
Rental and Leasing............................. 2,821
5.66%
Professional, Scientific, Management,
Administrative, and Waste Management Services .. 5,238
10.50%
Educational, Health and Social Services ......... 12,432
24.92%
Arts, Entertainment, Recreation,
Accommodation and Food Services ................ 4,974
9.97%
Other Services (Except Public Administration) ... 2,542
5.10%
3.80%
Public Administration........................... 1,894
Total......................................... 49,878
100.00%
Note:
(1)
Source:
U.S. Bureau of the Census, 2000.
18
Peoria County
Number
Percent
State of Illinois
Number
Percent
623
4,407
15,198
2,649
9,580
3,457
2,167
0.73%
5.17%
17.83%
3.11%
11.24%
4.05%
2.54%
66,481
334,176
931,162
222,990
643,472
352,193
172,629
1.14%
5.73%
15.96%
3.82%
11.03%
6.04%
2.96%
4,911
5.76%
462,169
7.92%
8,012
19,553
9.40%
22.93%
590,913
1,131,987
10.13%
19.41%
7,377
4,298
3,026
85,258
8.65%
5.04%
3.55%
100.00%
417,406
275,901
231,706
5,833,185
7.16%
4.73%
3.97%
100.00%
Employment by Occupation(1)
The City
Number
Percent
Classification
Management, Professional and Related Occupations .. 19,104
38.30%
Service .......................................... 8,845
17.73%
Sales and Office ................................. 13,175
26.41%
Farming, Fishing and Forestry.....................
30
0.06%
Construction, Extraction, and Maintenance ......... 2,837
5.69%
11.80%
Production, Transportation, and Material Moving ... 5,887
Total........................................... 49,878
100.00%
Note:
(1)
Source:
Peoria County
Number
Percent
30,031
35.22%
13,833
16.22%
22,709
26.64%
127
0.15%
6,557
7.69%
12,001
14.08%
85,258
100.00%
State of Illinois
Number
Percent
1,993,671
34.18%
813,479
13.95%
1,609,939
27.60%
17,862
0.31%
480,418
8.24%
917,816
15.73%
5,833,185
100.00%
Caterpillar Inc., is the largest employer in the City and the region. In the Peoria area, Caterpillar has five
separate facilities: East Peoria (track type tractors); Mapleton (foundry); Mossville (diesel and natural gas engines);
Morton (parts warehouse); and Peoria (corporate headquarters).
Major Regional Employers(1)
More than 15,000 Employees
Peoria............................. Caterpillar, Inc.(2) ................................. Construction Machinery and Equipment
More than 1,500 Employees
Peoria.............................
Peoria.............................
Peoria.............................
Various............................
Methodist Medical Center ............................. Hospital
OSF St. Francis Medical Center ....................... Hospital
City of Peoria, School District Number 150 ........... Schools
Wal-Mart(3) .......................................... Retail Store
1,000 to 1,500 Employees
Peoria.............................
Peoria.............................
Various............................
Peoria.............................
Peoria.............................
Peoria.............................
Peoria.............................
Peoria.............................
Peoria.............................
Affina ............................................... Inbound Telemarketing
Bradley University ................................... Higher Education
Kroger Co.(3) ........................................ Grocery Stores
Peoria County ........................................ County Government
Peoria Park District(4) .............................. Recreation
Peoria Air Guard 182nd Airlift Wing .................. Military
Pekin Insurance and Farmers Automobile Insurance ..... Insurance
Proctor Community Hospital ........................... Hospital
U.S. Postal Service .................................. Mail Delivery, Retail Services
500 to 1,000 Employees
Peoria.............................
East Peoria........................
Pekin..............................
Peoria.............................
East Peoria........................
Various............................
Peoria.............................
Peoria.............................
Morton.............................
East Peoria........................
Pekin..............................
Peoria.............................
Pekin..............................
Citizens Equity Federal Credit Union (CEFCU) ......... Credit Union
G & D Transportation, Inc. ........................... Trucking Services
Health Maintenance Association, Inc. ................. Pharmaceuticals
Health Professionals Ltd.. ........................... Healthcare Provider
Illinois Central College ............................. Higher Education
Kmart Corporation(3) ................................. Retail Store
Keystone Steel and Wire Co. .......................... Steel
Komatsu America Corp. ................................ Trucks and Bus Bodies
Morton Metalcraft Company ............................ Sheet Metal Work
Par-A-Dice Casino .................................... Casino
City of Pekin ........................................ Government
City of Peoria ....................................... Government
Tazewell County ...................................... Government
Notes:
(1)
(2)
(3)
(4)
Source: Economic Development Commission for the Peoria Area and a selective telephone survey as of September 1,
2009.
Caterpillar, Inc. recently announced a series of worldwide layoffs. The City believes that approximately 1,500
Caterpillar employees would be affected in the Peoria area including 800 employees at a plant scheduled to close. At
the same time the City understands that Caterpillar employees from other Caterpillar-owned facilities might be
brought into the City. It is therefore unknown at this time what the net impact will be.
Various locations within Peoria, Tazewell and Woodford counties.
Includes seasonal employees. There are between 500 and 600 employees in the off-season.
19
Unemployment Rates
Annual Average Unemployment Rates(1)
Calendar
Year
2000 .............................
2001 .............................
2002 .............................
2003 .............................
2004 .............................
2005 .............................
2006 .............................
2007 .............................
2008 .............................
2009(2) ..........................
Notes:
(1)
(2)
The
City
4.8%
5.5%
6.3%
6.5%
6.7%
5.2%
4.4%
5.0%
6.2%
12.2%
Peoria
County
4.3%
5.1%
5.8%
6.0%
6.1%
5.0%
4.2%
4.8%
6.0%
11.6%
State of
Illinois
4.3%
5.4%
6.5%
6.7%
6.2%
5.7%
4.5%
5.0%
6.5%
10.2%
Source: Illinois Department of Employment Security.
Preliminary for September 2009.
Commerce
The City is the ninth largest wholesale center in Illinois and the largest outside the metropolitan area of
Chicago. Significant increases in retail trade and services are as indicated by the following census data.
U.S. Census of Business(1)
Year
1977 ...
1982 ...
1987 ...
1992 ...
1997 ...
2002(4)
Retail Trade
Sales
Sales in
in City
County(3)
$ 721,819,000
$ 875,186,000
752,488,000
980,027,000
921,705,000
1,243,242,000
1,257,654,000
1,569,707,000
1,501,043,000
1,847,369,000
1,654,038,000
2,018,864,000
Notes:
(1)
(2)
(3)
(4)
Wholesale Trade
Sales
Sales in
in City
County(3)
$3,329,037,000 $3,661,387,000
3,394,374,000
3,745,425,000
2,765,613,000
3,066,350,000
2,613,026,000
3,079,654,000
5,321,280,000
5,875,505,000
1,766,531,000
2,150,765,000
Selected Service
Industries(2)
Manufacturers
Receipts
Receipts
Value added by Value added by
in City
in County(3)
Mfg in City
Mfg in County(3)
$ 148,722,000 $ 163,214,000 $365,400,000
$ 735,400,000
328,765,000
378,677,000
249,000,000
1,106,000,000
467,998,000
541,189,000
427,100,000
1,204,200,000
779,468,000
897,942,000
444,700,000
1,188,900,000
1,223,538,000
1,338,643,000
541,527,000
2,038,732,000
2,328,613,000
2,540,648,000
519,548,000
1,549,477,000
Source: U.S. Bureau of the Census. The 1997 and 2002 Census of Business is not directly comparable to the previous
years. Unlike earlier censuses, industries are classified according to the North American Industry Classification System
(“NAICS”). Previously, industries were classified according to the Standard Industrial Codes (“SIC”).
Statistics are for establishments with payrolls.
Includes the City.
The 2002 Census is the latest available. Information has been withheld to protect the identity of individual companies.
Information listed under services includes the following censuses, not separately detailed before:
Information;
Professional, Scientific and Technical Services; Educational Services; Health Care and Social Assistance; Arts,
Entertainment and Recreation; Accommodation and Food Services; Other Services (except public administration).
20
Housing
The 2000 Census reported that the median value of the City's owner-occupied homes was $85,400, which
compares with $85,900 for Peoria County and $130,800 for the State. The 2000 market value of specified owneroccupied units for the City, Peoria County and the State was as follows:
Specified Owner-Occupied Units(1)
Value
Under $50,000..................
$50,000 to $99,999 .............
$100,000 to $149,999 ..........
$150,000 to $199,999 ...........
$200,000 to $299,999 ...........
$300,000 to $499,999 ...........
$500,000 to $999,999 ...........
$1,000,000 or more .............
Total........................
Note:
(1)
Source:
The City
Number
Percent
5,439
21.93%
9,810
39.56%
5,168
20.84%
2,360
9.52%
1,322
5.33%
588
2.37%
78
0.31%
0.13%
31
24,796
100.00%
Peoria County
Number
Percent
7,997
18.17%
19,374
44.03%
9,645
21.92%
3,793
8.62%
2,103
4.78%
860
1.95%
153
0.35%
78
0.18%
44,003
100.00%
State of Illinois
Number
Percent
230,049
9.31%
651,605
26.38%
583,409
23.62%
429,311
17.38%
344,651
13.95%
163,254
6.61%
55,673
2.25%
12,386
0.50%
2,470,338
100.00%
The Peoria Area Association of Realtors reports that in 2008 the average City home sales price was $127,815.
Growth in the Tax Base
Substantial building activity has been characteristic of the City. The table below shows the value of building
permits within the City.
City Building Permits(1)
(In thousands of dollars)
Residential(2)
Number
Value
Year
2000.... 408
$47,199
2001.... 249
36,449
2002.... 368
53,863
2003.... 343
51,242
2004.... 384
66,839
2005.... 357
66,138
2006.... 311
66,741
2007.... 309
82,893
2008.... 242
59,542
2009(4) . 100
23,932
Notes:
(1)
(2)
(3)
(4)
Commercial(3)
Number
Value
57
$ 77,003
58
67,412
51
68,125
71
48,397
58
57,332
73
98,654
63
56,145
56
224,642
40
131,906
16
13,390
All
Other
$ 83,930
75,476
79,354
96,088
80,157
97,898
121,796
167,934
135,889
76,715
Total
$208,132
179,337
201,342
195,727
204,328
262,690
244,682
475,469
327,337
114,037
Source: the City.
Residential includes new duplex and triplex, new single family
dwellings and new townhomes.
Commercial includes new multi-family and new commercial.
Through October 7, 2009.
21
Income
According to the 2000 Census, the City had a median family income of $46,882. This compares to $50,592
for Peoria County and $55,545 for the State. The following table represents the distribution of family incomes for the
City, Peoria County and the State at the time of the 2000 Census.
Median Family Income(1)
Income
Under $10,000..........
$10,000 to $14,999 .....
$15,000 to $24,999 .....
$25,000 to $34,999 .....
$35,000 to $49,999 .....
$50,000 to $74,999 .....
$75,000 to $99,999 .....
$100,000 to $149,999 ...
$150,000 to $199,999 ...
$200,000 or more .......
Total................
Note:
(1)
Source:
The City
Number Percent
2,505
9.16%
1,551
5.67%
3,186
11.65%
2,991
10.94%
4,220
15.43%
5,742
21.00%
3,248
11.88%
2,500
9.14%
624
2.28%
2.83%
775
27,342
100.00%
Peoria County
Number
Percent
3,042
6.44%
2,022
4.28%
4,871
10.31%
5,386
11.40%
7,891
16.70%
11,402
24.13%
6,265
13.26%
4,301
9.10%
1,014
2.15%
1,058
2.24%
47,252
100.00%
State of Illinois
Number
Percent
156,205
5.00%
105,747
3.38%
273,712
8.76%
331,907
10.62%
506,429
16.20%
736,897
23.58%
445,390
14.25%
356,068
11.39%
101,955
3.26%
111,008
3.55%
3,125,318
100.00%
According to the 2000 Census, the City had a median household income of $36,397. This compares with
$39,978 for Peoria County and $46,590 for the State. The following table represents the distribution of household
incomes in the City, Peoria County and the State at the time of the 2000 Census.
Median Household Income(1)
The City
Number
Percent
Income
Under $10,000.......... 5,804
12.87%
$10,000 to $14,999 ..... 3,565
7.91%
$15,000 to $24,999 ..... 6,567
14.56%
$25,000 to $34,999 ..... 5,814
12.89%
$35,000 to $49,999 ..... 6,947
15.41%
$50,000 to $74,999 ..... 8,038
17.82%
$75,000 to $99,999 ..... 3,937
8.73%
$100,000 to $149,999 ... 2,855
6.33%
$150,000 to $199,999 ...
677
1.50%
1.97%
$200,000 or more .......
890
Total................ 45,094
100.00%
Note:
(1)
Source:
Peoria County
Number
Percent
7,344
10.10%
4,939
6.79%
9,851
13.54%
9,768
13.43%
11,921
16.39%
14,563
20.02%
7,222
9.93%
4,774
6.56%
1,100
1.51%
1,257
1.73%
72,739
100.00%
22
State of Illinois
Number
Percent
383,299
8.35%
252,485
5.50%
517,812
11.27%
545,962
11.89%
745,180
16.23%
952,940
20.75%
531,760
11.58%
415,348
9.04%
119,056
2.59%
128,898
2.81%
4,592,740
100.00%
DISTRICT DEBT INFORMATION
After issuance of the Bonds, the District will have $188,337,035 principal amount of general obligation debt
and Public Building Commission debt.
Outstanding Debt(1)
(Principal Only)
Series 1993B
and 1993E
PBC Leases(3)
$
0
2,200,000
1,350,000
1,615,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
$5,165,000
Calendar
Series 1992
Year
PBC Lease(2)
2009 ........ $
0
2010 ........
918,840
2011 ........
400,495
2012 ........
0
2013 ........
0
2014 ........
0
2015 ........
0
2016 ........
0
2017 ........
0
2018 ........
0
2019 ........
0
2020 ........
0
2021 ........
0
2022 ........
0
2023 ........
0
2024 ........
0
2025 ........
0
2026 ........
0
2027 ........
0
2028 ........
0
2029 ........
0
Total ..... $1,319,335
Calendar
Series
Year
2009A(4)
2009 .......$
0
2010 .......
0
2011 ....... 1,210,000
2012 ....... 1,350,000
2013 ....... 1,500,000
2014 .......
0
2015 .......
0
2016 .......
0
2017 .......
0
2018 .......
0
2019 .......
0
2020 .......
0
2021 .......
0
2022 .......
0
2023 .......
0
2024 .......
0
2025 .......
0
2026 .......
0
2027 .......
0
2028 .......
0
2029 .......
0
Total ....$4,060,000
Notes:
(1)
(2)
(3)
(4)
(5)
(6)
Series
2009B(4)
$
0
0
0
0
0
1,665,000
1,800,000
1,975,000
2,200,000
2,425,000
2,650,000
2,900,000
3,175,000
3,450,000
3,700,000
4,000,000
4,000,000
0
0
0
0
$33,940,000
Series
2002
$
0
370,000
495,000
545,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
$1,410,000
Series
2009C(5)
$
0
145,000
160,000
780,000
0
1,485,000
770,000
925,000
0
0
0
270,000
675,000
160,000
0
0
0
0
0
0
0
$5,370,000
Series
2005A(4)
$3,845,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
$3,845,000
Series
2009D(5)
$
0
0
0
0
0
0
0
0
0
0
0
0
0
500,000
500,000
0
0
0
2,000,000
3,000,000
0
$6,000,000
Series
2005B(4)
$
0
1,638,122
1,599,888
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
$3,238,010
Series
2009E(5)
$
0
0
0
0
0
0
0
0
0
0
0
0
0
500,000
1,115,000
0
0
0
0
0
0
$1,615,000
Series
2005C(4)
$
0
0
0
822,638
1,329,646
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
$2,152,284
Additional
PBC Lease
Debt(6)
$
0
1,549,418
1,763,617
1,576,531
2,484,956
2,314,646
2,102,411
1,910,447
1,736,741
1,579,492
1,437,075
1,308,042
1,191,083
1,085,026
988,814
901,498
822,225
750,223
684,802
625,336
125,253
$26,937,636
Series
2008A PBC
Lease
$
0
0
0
0
0
1,148,925
1,622,372
1,630,008
1,843,878
1,956,669
1,817,640
509,680
475,780
443,270
206,090
192,760
180,115
168,135
156,805
146,090
0
$12,498,217
The Bonds
$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,200,000
2,000,000
2,800,000
3,700,000
4,500,000
15,000,000
$30,200,000
Series
2009A PBC
Lease
$
0
0
0
0
2,143,900
2,281,048
2,242,947
2,122,278
1,992,213
2,056,736
2,343,600
2,154,840
1,477,380
1,592,010
1,995,216
1,905,450
1,579,590
1,618,200
535,968
546,740
0
$28,588,116
Total
$ 3,845,000
6,821,380
6,979,000
6,689,169
8,630,064
9,681,909
9,503,578
9,539,723
9,208,178
9,235,577
9,314,576
9,209,402
9,376,143
9,699,056
9,911,980
10,480,288
10,281,760
6,478,958
8,478,675
9,847,366
15,125,253
$188,337,035
Series
2009B PBC
Lease(5)
$
0
0
0
0
1,171,562
787,290
965,848
976,990
1,435,346
1,217,680
1,066,261
2,066,840
2,381,900
1,968,750
1,406,860
1,280,580
1,699,830
1,142,400
1,401,100
1,029,200
0
$21,998,437
Cumulative Retirement
Amount
Percent
$ 3,845,000
2.04%
10,666,380
5.66%
17,645,380
9.37%
24,334,549
12.92%
32,964,613
17.50%
42,646,522
22.64%
52,150,100
27.69%
61,689,823
32.76%
70,898,001
37.64%
80,133,578
42.55%
89,448,154
47.49%
98,657,556
52.38%
108,033,699
57.36%
117,732,755
62.51%
127,644,735
67.77%
138,125,023
73.34%
148,406,783
78.80%
154,885,741
82.24%
163,364,416
86.74%
173,211,782
91.97%
188,337,035
100.00%
Source: The District and the Public Building Commission. Original Principal amounts are shown for capital appreciation bonds.
Although the Series 1992 Bonds were partially refunded by the Commission's Series 1997B Bonds, the 1992 lease payments still exist
and are used to pay debt service on the Series 1997B Bonds.
Although the Series 1993B and 1993E Bonds were refunded by the Commission's Series 2002 Bonds the 1993B and 1993E lease payments
still exist and are used to pay debt service on the Series 2002 Bonds.
Includes the January 1 payment of the subsequent calendar year with the December payments of the current calendar year.
The Series 2009C, 2009D and 2009E School District Number 150 Bonds are expected to close on the same day as the Series 2009C Public
Building Commission Bonds.
A portion of the lease payments not used to pay principal or interest may be considered debt of the District.
23
Detailed Statement of District Direct and Overlapping Bonded Debt(1)
(As of June 16, 2009)
Equalized Valuation, 2008........................................................................................... $1,393,221,535
(Excludes Tax Increment District Valuations)(13.8% Statutory Debt Limit Equals $201,357,664)
Estimated Full Value, 2008.......................................................................................... $4,179,664,605
Direct Debt:(2)
Direct Bonded Debt.................................................................................................. $
Public Building Commission of Peoria (Principal Only)(3) ............................................................
Public Building Commission of Peoria (Additional Debt) ..............................................................
Total Direct Debt................................................................................................. $
61,630,294
99,769,105
26,937,636
188,337,035
Percent
Share
Applicable
Overlapping Bonded Debt:
Peoria County(5)................................................................ $ 15,466,000
44.00%
$ 6,804,596
City of Peoria.................................................................. 181,330,000
68.83%
124,815,646
Weaver Ridge Special Service Areas ..............................................
3,685,000
100.00%
3,685,000
Pleasure Driveway & Park District of Peoria ..................................... 12,647,500
67.33%
8,516,109
Greater Peoria Airport Authority ................................................ 55,475,000
44.09%
24,458,050
Community College District No. 514 (Including Principal of PBC Bonds) ........... 41,440,000
21.86%
9,056,761
Total Overlapping Bonded Debt ..................................................................................... $177,336,162
Total Direct and Overlapping Bonded Debt(2) ....................................................................... $364,808,166
Net Debt
Amount
Applicable
Equalized Assessed Valuation of Taxable Property, 2008 .......... $1,393,221,535
Estimated Actual Value, 2008.................................... $4,179,664,605
Per Capita
Est. Pop.
114,000
$12,221.24
$36,663.72
Percent
Of
EAV
100.00%
300.00%
Percent of
Estimated
True Value
33.33%
100.00%
Direct Bonded Debt(2)........................................... $
188,337,035
$ 1,652.08
13.52%
4.51%
Overlapping Bonded Debt:
City of Peoria.................................................. $
All Others......................................................
Total Overlapping Bonded Debt ................................. $
Total Direct and Overlapping Bonded Debt(2) ................... $
124,815,646
52,520,516
177,336,162
365,673,197
$ 1,094.87
460.71
$ 1,555.58
$ 3,207.66
8.96%
3.77%
12.73%
26.25%
2.99%
1.26%
4.24%
8.75%
Notes:
(1)
(2)
(3)
Source: Peoria County.
Includes Public Building Commission Debt and the Bonds. Excludes certificate debt.
Includes the PBC Series 2008A Bonds, Series 2009A Bonds, Series 2009B Bonds and the Bonds.
PROPERTY ASSESSMENT AND TAX INFORMATION
For the 2008 levy year, the District’s Equalized Assessed Valuation (“EAV”) was comprised of approximately
69% residential, 28% commercial and 2% industrial and less than 1% mineral, farm and railroad property valuations.
District Equalized Assessed Valuation(1)
2004
Levy Years
2006
2005
Property Class
Residential............... $ 830,633,658
$ 857,223,646
Commercial................
339,550,304
348,765,956
Industrial................
28,414,535
28,363,018
Mineral...................
180
180
Farm......................
464,020
454,760
924,159
Railroads.................
973,813
Total................... $1,200,036,510
$1,235,731,719
Percent Change + (-)......
0.26%(2)
2.97%
Notes:
(1)
(2)
$
892,315,454
362,697,642
28,910,904
190
452,803
881,802
$1,285,258,795
4.01%
2007
$
940,940,211
383,325,287
29,889,552
200
494,157
939,002
$1,355,588,409
5.47%
Source: Peoria County. Excludes tax increment district valuations.
Percentage based on 2003 EAV of $1,196,900,911.
24
2008
$
963,445,031
397,858,107
30,325,926
210
477,418
1,114,843
$1,393,221,535
2.78%
District Representative Tax Rates(1)
(Per $100 EAV)
2004
2005
Levy Years
2006
2007
2008
The District:
Educational .........................................
Operations, Building & Maintenance ...................
Transportation.......................................
Working Cash ........................................
Special Education Building...........................
Fire Safety..........................................
Liability Insurance..................................
Retirement & Social Security.........................
Bonds................................................
Public Building Commission Rental ....................
Total District Rates...............................
$2.1800
0.5000
0.1995
0.0500
0.0400
0.0500
0.4154
0.2624
0.0743
0.5517
$4.3233
$2.1800
0.5000
0.2000
0.0000
0.0400
0.0500
0.3852
0.3358
0.1928
0.6078
$4.4915
$2.1800
0.5000
0.2000
0.0000
0.0400
0.0500
0.3853
0.1823
0.4095
0.5375
$4.4846
$2.1800
0.5000
0.2000
0.0000
0.0400
0.0500
0.3653
0.3459
0.2645
0.5148
$4.4605
$2.1800
0.5000
0.2000
0.0000
0.0400
0.0000
0.4396
0.3487
0.2941
0.5928
$4.5951
The District.........................................
Peoria County (inc. Greater Peoria Mass Transit) .....
Peoria Township......................................
City of Peoria.......................................
Peoria Airport Authority.............................
Pleasure Driveway and Park District of Peoria ........
Junior College District Number 514 ...................
Total(2)...........................................
$4.3233
1.0293
0.1373
1.2723
0.2021
0.6874
0.4898
$8.1415
$4.4915
1.0235
0.1390
1.2896
0.2039
0.7089
0.4801
$8.3365
$4.4846
1.0172
0.1366
1.2822
0.2409
0.7134
0.4841
$8.3589
$4.4605
0.9845
0.1318
1.2707
0.2324
0.6979
0.4490
$8.2270
$4.5951
0.9758
0.1312
1.3861
0.1747
0.7025
0.4411
$8.4065
Notes:
(1)
(2)
Source: Peoria County Clerk.
Representative tax rate is for Peoria Township Tax Code No. 1 which represents 81.7% of the District's 2008
Equalized Assessed Valuation.
Tax Extensions and Collections(1)
(School Purposes Only)
Levy
Coll.
Year
Year
2003........2004 .........
2004........2005 .........
2005........2006 .........
2006........2007 .........
2007........2008 .........
2008........2009 .........
Taxes
Extended
$50,025,426
51,881,178
55,503,014
57,638,202
60,466,563
64,019,923
Note:
the District.
(1)
Source:
Total Collections
Amount
Percent
$50,010,149
99.97%
51,589,999
99.44%
55,323,937
99.68%
57,351,387
99.50%
60,105,315
99.40%
------In Collection------
Principal Taxpayers(1)
Business/Service
2008 EAV(2)
Taxpayer Name
Caterpillar Inc...........................................Earthmoving Equipment .................................... $20,438,290
MCRIL LLC.................................................Shopping Center .......................................... 11,686,050
Wal-Mart Real Estate Business Trust .......................Retail Superstore ........................................ 10,343,480
Northwoods Dev. Co........................................Shopping Mall ............................................ 9,517,180
Edward Rose Bldg. Co......................................Real Estate .............................................. 9,353,850
Willow Knolls Ltd.........................................Real Estate .............................................. 7,767,110
IMI Grand Prairie North LLC...............................Real Estate .............................................. 6,366,420
Commercial Tax Service(3).................................Minor League Baseball Stadium ............................ 5,744,770
Gateway Taylor, Inc.......................................Real Property ............................................ 5,654,770
Lexington House Corporation...............................Fermentation Products .................................... 5,246,120
Total................................................... ......................................................... $92,118,040
Ten Largest Taxpayers as Percent of City's 2008 EAV ($1,945,751,863) ..............................................
4.73%
Notes:
(1)
(2)
(3)
Source: the County. Taxpayers listed are in or near the District and all are in the City.
Every effort has been made to research and report the largest taxpayers. However, many of the taxpayers
listed contain multiple parcels and it is possible that some parcels and their valuations have been
overlooked. The 2008 EAV is the most current available.
Previously 7150 Terra Vista LLC.
25
REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES
Tax Levy and Collection Procedures
Local assessment officers determine the assessed valuation of taxable real property and railroad property not
held or used for railroad operations. The Illinois Department of Revenue (the “Department”) assesses certain other
types of taxable property, including railroad property held or used for railroad operations. Local assessment officers’
valuation determinations are subject to review at the county level and then, in general, to equalization by the
Department. Such equalization is achieved by applying to each county’s assessments a multiplier determined by the
Department. The purpose of equalization is to provide a common basis of assessments among counties by adjusting
assessments toward the statutory standard of 33-1/3% of fair cash value. Farmland is assessed according to a statutory
formula which takes into account factors such as productivity and crop mix. Taxes are extended against the assessed
values after equalization.
Property tax levies of each taxing body are filed in the office of the county clerk of each county in which
territory of that taxing body is located. The county clerk computes the rates and amount of taxes applicable to taxable
property subject to the tax levies of each taxing body and determines the dollar amount of taxes attributable to each
respective parcel of taxable property. The county clerk then supplies to the appropriate collecting officials within the
county the information needed to bill the taxes attributable to the various parcels therein. After the taxes have been
collected, the collecting officials distribute to the various taxing bodies their respective shares of the taxes collected.
Taxes levied in one calendar year are due and payable in two installments during the next calendar year. Taxes that are
not paid when due, or that are not paid by mail and postmarked on or before the due date, are subject to a penalty of
1-1/2% per month until paid. Unpaid property taxes, together with penalties, interest and costs, constitute a lien
against the property subject to the tax.
Exemptions
An annual General Homestead Exemption (the “General Homestead Exemption”) provides that the Equalized
Assessed Valuation (“EAV”) of certain property owned and used for residential purposes (“Residential Property”) may
be reduced by the amount of any increase over the 1977 EAV, up to a maximum reduction of $3,500 for assessment
years prior to assessment year 2004 in counties with less than 3,000,000 inhabitants, and a maximum reduction of
$5,000 for assessment year 2004 through 2007 in all counties. Additionally, the maximum reduction is $5,500 for
assessment year 2008 and the maximum reduction is $6,000 for assessment year 2009 and thereafter in all counties.
The Homestead Improvement Exemption applies to Residential Properties that have been improved or rebuilt in
the 2 years following a catastrophic event. The exemption is limited to $45,000 through December 31, 2003, and
$75,000 per year beginning January 1, 2004 and thereafter, to the extent the assessed value is attributable solely to such
improvements or rebuilding.
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 for assessment years prior to
2004 by $2,000 in counties with less than 3,000,000 inhabitants. For assessment years 2004 and 2005, the maximum
reduction is $3,000 in all counties. For assessment years 2006 and 2007, the maximum reduction is $3,500 in all
counties. In addition, for assessment year 2008 and thereafter, the maximum reduction is $4,000 for all counties.
Furthermore, beginning with assessment year 2003, for taxes payable in 2004, 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 pro rata 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.
26
A Senior Citizens Assessment Freeze Homestead Exemption (“Senior Citizens Assessment Freeze Homestead
Exemption”) freezes property tax assessments for homeowners, who are 65 and older and receive a household income
not in excess of the maximum income limitation. The maximum income limitation is $35,000 for years prior to 1999,
$40,000 for assessment years 1999 through 2003, $45,000 for assessment years 2004 and 2005, $50,000 from
assessment years 2006 and 2007 and for assessments year 2008 and after, the maximum income limitation is $55,000.
In general, the Senior Citizens Assessment Freeze Homestead Exemption limits the annual real property tax bill of such
property by granting to qualifying senior citizens an exemption as to a portion of the valuation of their property. In
counties with a population of 3,000,000 or more, the exemption for all assessment years is equal to the EAV of the
residence in the assessment year for which application is made less the base amount. Furthermore, for those counties
with a population of less than 3,000,000, the Senior Citizens Assessment Freeze Homestead Exemption is as follows:
through assessment year 2005 and for assessment year 2007 and later, the exempt amount is the difference between (i)
the current EAV of their residence and (ii) the base amount, which is the EAV of a senior citizen’s residence for the
year prior to the year in which he or she first qualifies and applies for the Exemption (plus the EAV of improvements
since such year). For assessment year 2006, the amount of the Senior Citizens Assessment Freeze Homestead
Exemption phases out as the amount of household income increases. The amount of the Senior Citizens Assessment
Freeze Homestead Exemption is calculated by using the same formula as above, and then multiplying the resulting
value by a ratio that varies according to household income.
Another exemption available to disabled veterans operates 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. Also,
certain property is exempt from taxation on the basis of ownership and/or use, such as public parks, not-for-profit
schools and public schools, churches, and not-for-profit hospitals and public hospitals. However, individuals claiming
exemption under the Disabled Persons’ Homestead Exemption (“Disabled Persons’ Homestead Exemption”) or the
Disabled Veterans Standard Homestead Exemption (“Disabled Veterans Standard Homestead Exemption”) cannot claim
the aforementioned exemption.
Furthermore, beginning with assessment year 2007, the Disabled Persons’ Homestead Exemption provides an
annual homestead exemption in the amount of $2,000 for property that is owned and occupied by certain persons with a
disability. However, individuals claiming exemption as a disabled veteran or claiming exemption under the Disabled
Veterans Standard Homestead Exemption cannot claim the aforementioned exemption.
In addition, the Disabled Veterans Standard Homestead Exemption provides disabled veterans an annual
homestead exemption starting with assessment year 2007 and thereafter. Specifically, (i) those veterans with a serviceconnected disability of 75% are granted an exemption of $5,000 and (ii) those veterans with a service-connected
disability of less than 75%, but at least 50% are granted an exemption of $2,500. Furthermore, the veteran’s surviving
spouse is entitled to the benefit of the exemption, provided that the spouse has legal or beneficial title of the homestead,
resides permanently on the homestead and does not remarry. 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 exemption under the Disabled Persons’ Homestead
Exemption cannot claim the aforementioned exemption.
Beginning with assessment year 2007, the Returning Veterans’ Homestead Exemption (“Returning Veterans’
Homestead Exemption”) is available for property owned and occupied as the principal residence of a veteran in the
assessment year the veteran returns from an armed conflict while on active duty in the United States armed forces.
This provision grants a homestead exemption of $5,000, which is applicable in all counties. In order to apply for the
Returning Veterans’ Homestead Exemption, the individual must pay real estate taxes on the property, own the property
or have either a legal or an equitable interest in the property, “or a leasehold interest of land on which a single family
residence is located, which is occupied as a principle residence of a veteran returning from an armed conflict involving
the armed forces of the United States who has an ownership interest therein, legal, equitable or as a lessee, and on
which the veteran is liable for the payment of property taxes.” Those individuals eligible for the Returning Veterans’
Homestead Exemption may claim the Returning Veterans’ Homestead Exemption, in addition to other homestead
exemptions, unless otherwise noted.
27
Truth in Taxation Law
Legislation known as the Truth in Taxation Law (the “Law”) limits the aggregate amount of certain taxes which
can be levied by, and extended for, a taxing district to 105% of the amount of taxes extended in the preceding year
unless specified notice, hearing and certification requirements are met by the taxing body. The express purpose of the
Law is to require published disclosure of, and hearing upon, an intention to adopt a levy in excess of the specified
levels.
DISTRICT FINANCIAL INFORMATION
The accounts of the District are organized on the basis of funds and account groups, each of which is
considered a separate accounting entity. The operations of each fund are accounted for with a separate set of selfbalancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or its expenses, as
appropriate. District resources are allocated to and accounted for in individual funds based upon the purposes for
which they are to be spent and the means by which spending activities are controlled. The Educational and Operations,
Building and Maintenance Funds comprise the general operating fund. It is used to account for all financial resources
except those required to be accounted for in other funds.
Basis of accounting defines when revenue and expenditures or expenses are recognized in the accounts and
reported in the financial statements. Basis of accounting is related to the timing of their recognition. The final
statements of the Governmental, Expendable Trust and Agency Funds have been prepared in accordance with the
modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when
susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or
soon enough thereafter to be used to pay liabilities of the current period. Expenditures, other than interest on long-term
debt, are recorded when the liability is incurred. The funds and accounting records are also maintained in compliance
with the “Illinois Program Accounting Manual for Local Education Agencies”.
Property tax revenue is recognized in compliance with Section P70 of the Codification of the Governmental
Accounting and Financial Reporting Standards. This authority states that property tax revenue is recorded when it
becomes available. Available means then due, or past due and receivable within the current period and collected within
the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period.
Such time thereafter shall not exceed 60 days. Consequently, approximately 50% of each estimated collectible tax levy
is available as a resource to finance the current operations of the District and therefore susceptible to accrual as
revenue. The amounts of the estimated collectible tax levy which are deemed unavailable at June 30 are deferred in
that year (reported as deferred revenue in the balance sheet) and are not reflected as revenue.
Budgets and Budgetary Accounting
The District follows these procedures in establishing the budgetary data reflected in the financial statements:
1.
Approximately mid-May, annually, a tentative operating budget is submitted to the Board of
Education for the fiscal year commencing the following July 1. The tentative operating budget
includes proposed expenditures and the means of financing them.
2.
Public hearings are conducted at a public meeting to obtain taxpayer comments prior to final
action by the Board of Education.
3.
On approximately July 1, the budget is legally adopted through passage of a resolution.
28
4.
If budget alterations are required, an amended budget is prepared in September, October or
November of the fiscal year. Procedures, including public hearings, are followed with regard
to the amended budget just as they had been followed with the original budget. Final adoption
of the amended budget is taken, again by resolution, by the Board of Education in December.
All appropriations lapse at year-end.
The budget is prepared on the same basis as the financial reports. Budgets are prepared for the Educational,
Operations and Maintenance (General), Transportation, Municipal Retirement/Social Security (Special Revenue), Bond
and Interest, Rent (Debt Service), and Working Cash (nonexpendable Trust) Funds. The level of legal control is
considered to be at the fund level.
Budget Financial Information
Fiscal Year 2010 Budget
Educational Fund
Revenues .................. $133,831,082
Expenditures ..............
130,632,077
Net Surplus (Deficit) ... $ 1,199,005
Operations and
Maintenance Fund
$11,363,375
13,864,059
$(2,500,684)
No Consent or Updated Information Requested of the Auditor
The tables and excerpts (collectively, the “Excerpted Financial Information”) contained in this “DISTRICT
FINANCIAL INFORMATION” section and in APPENDIX A are from the audited financial statements of the
District, including the audited financial statements for the fiscal year ended June 30, 2009 (the “2009 Audit”). The
2009 Audit has been prepared by Clifton Gunderson LLP, Certified Public Accountants, Peoria, Illinois (the
“Auditor”), and the Board of Education received and accepted the 2009 Audit at its December 14, 2009 Board Meeting
g. The District has not requested the Auditor to update information contained in the Excerpted Financial Information;
nor has the District requested that the Auditor consent to the use of the Excerpted Financial Information in this Final
Official Statement. Other than as expressly set forth in this Final Official Statement, the financial information
contained in the Excerpted Financial Information has not been updated since the date of the 2009 Audit. The inclusion
of the Excerpted Financial Information in this Final Official Statement in and of itself is not intended to demonstrate the
fiscal condition of the District since the date of the 2009 Audit. The District continues to seek to manage its finances
to cope with the general worsening economy. Questions or inquiries relating to financial information of the District
since the date of the 2009 Audit should be directed to the District.
Financial Summaries
The following reports are summaries and do not purport to be the complete audits, copies of which are
available upon request. See APPENDIX A for excerpts from the 2009 fiscal year financial statements.
29
Educational Fund
Balance Sheet
Audited as of June 30
2007
2006
2005
2008
2009
ASSETS:
Cash........................................
Other Accrued Assets........................
Taxes Receivable............................
Accounts Receivable.........................
Inventory...................................
Investments.................................
Total Assets..............................
$ 8,628,912
19,614,067
20,897,398
936,528
906,507
31,200
$51,014,612
$
921,827
14,764,173
22,763,994
481,249
687,689
32,340
$39,651,272
$ 3,527,573
14,578,411
21,463,149
797,404
603,052
34,141
$41,003,730
$ 1,280,775
14,632,121
22,528,403
980,173
824,613
143,497
$40,389,582
$10,418,145
21,278,571
20,239,178
93,420
1,137,080
5,426,383
$58,592,777
LIABILITIES AND DISTRICT EQUITY:
Accrued Liabilities.........................
Tax Anticipation Warrants Payable ...........
Teachers'/Employees' Orders Payable .........
Payroll Deductions Payable..................
Deferred Revenue............................
Other Current Liabilities...................
Total Liabilities.........................
$19,102,962
0
15,052,542
1,103,340
16,081,785
4,208,198
$55,548,827
$13,084,130
8,000,000
0
1,111,231
16,655,330
1,031,341
$39,882,032
$12,194,811
6,000,000
0
990,138
16,738,157
1,320,545
$37,243,651
$10,454,827
6,000,000
0
788,543
19,192,192
1,049,871
$37,485,433
$12,848,811
30,000,000
0
2,303,711
16,312,494
735,772
$62,200,788
$
$
$
$
$ 1,137,080
(4,745,091)
$(3,608,011)
$58,592,777
Fund Balances:
Reserved....................................
Unreserved..................................
Total Fund Balances.......................
Total Liabilities and Fund Balances .......
0
(4,534,215)
$(4,534,215)
$51,014,612
687,689
(918,449)
$ (230,760)
$39,651,272
603,052
3,157,027
$ 3,760,079
$41,003,730
824,613
2,079,536
$ 2,904,149
$40,389,582
Operations and Maintenance Fund
Balance Sheet
ASSETS:
Cash........................................
Other Accrued Assets........................
Taxes Receivable............................
Accounts Receivable.........................
Investments.................................
Total Assets..............................
2005
2006
$1,591,573
3,122,642
3,819,813
11,902
1,166,366
$9,712,296
$3,902,963
0
4,286,688
12,459
1,213,292
$9,415,402
LIABILITIES AND DISTRICT EQUITY:
Accrued Liabilities......................... $1,067,533
Payroll Deductions Payable..................
0
Deferred Revenue............................ 2,840,830
Other Current Liabilities...................
703,875
Total Liabilities......................... $4,612,238
Fund Balances:
Reserved....................................
Unreserved..................................
Total Fund Balances.......................
Total Liabilities and Fund Balances .......
$
0
5,100,058
$5,100,058
$9,712,296
Audited as of June 30
2007
2008
2009
$
815,028
0
4,041,564
12,459
1,287,887
$6,156,938
$
174,688
1,000,000
4,957,371
12,459
339,546
$6,484,064
$4,498,359
0
4,458,000
12,459
47,884
$9,016,702
$
307,764
59,207
2,936,099
398,543
$3,701,613
$
500,670
0
3,053,775
457,064
$4,011,509
$
415,829
0
3,237,145
454,722
$4,107,696
$
$
$
$
$
0
5,713,789
$5,713,789
$9,415,402
30
0
2,145,429
$2,145,429
$6,156,938
0
2,376,368
$2,376,368
$6,484,064
526,921
0
3,310,294
413,796
$4,251,011
0
4,765,691
$4,765,691
$9,016,702
Educational Fund
Revenues and Expenditures
Audited Fiscal Year Ending June 30
2006
2007
2008
2005
2009
REVENUES:
Local Receipts.............................. $ 42,557,179
State Sources...............................
45,690,576
Federal Sources.............................
21,616,970
Total Revenues............................ $109,864,725
$ 46,357,660
49,903,428
22,171,765
$118,432,853
$ 47,162,223
52,779,555
22,353,944
$122,295,722
$ 50,790,792
64,970,285
20,119,597
$135,880,674
$ 46,063,535
60,328,173
31,522,990
$137,914,698
EXPENDITURES:
Instruction................................. $ 80,939,176
Support Services............................
38,336,065
Community Services..........................
1,786,747
Nonprogrammed Charges.......................
2,795,722
Debt Service................................
139,655
Total Expenditures........................ $123,997,365
$ 82,878,786
41,761,157
1,625,303
3,042,850
106,996
$129,415,092
$ 84,718,435
39,129,429
2,099,634
86,718
270,400
$126,304,616
$ 91,795,188
39,814,640
2,005,874
2,800,387
320,515
$136,736,604
$ 99,066,408
41,602,453
2,025,446
1,065,427
323,414
$144,083,148
Revenues Over (Under) Expenditures .......... $(14,132,640)
$(10,982,239)
$ (4,008,894)
$
$ (6,168,450)
$
0
13,033,149
2,248,942
3,603
$ 15,285,694
$
$
$
6,500,000
0
0
1,499,733
7,999,733
$
$
3,990,839
$
$
$
(230,760)
3,760,079
$
$
OTHER FINANCING SOURCES (USES):
Transfers (to) from Other Funds ............. $ 22,882,555
Principal on Bonds Sold.....................
0
Premium on Bonds Sold.......................
0
Revenues from Other Sources.................
17,090
Total Other Financing Sources (Uses) ...... $ 22,899,645
Revenues and Other Financing Sources
Over (Under) Expenditures
and Other Financing Sources................ $
8,767,005
Fund Balance at Beginning of Year ........... $(13,301,220)
Fund Balance at End of Year................. $ (4,534,215)
4,303,455
$ (4,534,215)
$
(230,760)
(855,930)
0
0
0
0
0
$
(855,930)
3,760,079
2,904,149
$
$
(343,710)
0
0
0
(343,710)
$ (6,512,160)
$ 2,904,149
$ (3,608,011)
Operations and Maintenance Fund
Revenues and Expenditures
Audited Fiscal Year Ending June 30
2006
2007
2008
2005
2009
REVENUES:
Local Receipts.............................. $ 9,572,951
State Sources............................... 2,575,000
Federal Sources.............................
0
Total Revenues............................ $12,147,951
$ 9,813,896
2,192,171
0
$12,006,067
$10,637,695
2,750,000
41,998
$13,429,693
$11,597,617
2,700,000
0
$14,297,617
$ 9,908,517
0
337,637
$10,246,154
EXPENDITURES:
Support Services............................ $11,191,754
Debt Service................................
373,966
Total Expenditures........................ $11,565,720
$11,392,336
0
$11,392,336
$13,998,053
0
$13,998,053
$14,066,678
0
$14,066,678
$13,606,831
0
$13,606,831
Revenues Over (Under) Expenditures .......... $
582,231
$
613,731
$
(568,360)
$
230,939
$(3,360,677)
OTHER FINANCING SOURCES (USES):
Transfers from (to) Other Funds ............. $
Revenues from Other Sources.................
Total Other Financing Sources (Uses) ...... $
0
0
0
$
$(3,000,000)(1)
0
$(3,000,000)
$
$
0
0
0
$
0
0
0
$ 5,000,000
750,000
$ 5,750,000
Revenues and Other Financing Sources
Over (Under) Expenditures
and Other Financing Sources................ $
582,231
$
613,731
$(3,568,360)
$
230,939
$ 2,389,323
$ 5,713,789
$ 2,145,429
$ 2,145,429
$ 2,376,368
$ 2,376,368
$ 4,765,691
Fund Balance at Beginning of Year ........... $ 4,517,827
Fund Balance at End of Year................. $ 5,100,058
Note:
(1)
$ 5,100,058
$ 5,713,789
There was a one time transfer of $3,000,000 of accumulated excess revenue from the Operations and Maintenance
Fund to the Education Fund.
31
PENSION AND RETIREMENT OBLIGATIONS
See APPENDIX A herein.
REGISTRATION, TRANSFER AND EXCHANGE
See also APPENDIX B for information on registration, transfer and exchange of book-entry bonds. The Bonds
will be initially issued as book-entry bonds.
The Commission shall cause books (the “Bond Register”) for the registration and for the transfer of the Bonds
to be kept at the principal office maintained for the purpose by the Bond Registrar in Indianapolis, Indiana. The
Commission will authorize to be prepared, and the Bond Registrar shall keep custody of, multiple bond blanks executed
by the Commission for use in the transfer and exchange of Bonds.
In the event the Book-Entry-Only System is discontinued, any Bond may be transferred or exchanged, but only
in the manner, subject to the limitations, and upon payment of the charges as set forth in the Bond Resolution. Upon
surrender for transfer or exchange of any Bond at the principal office maintained for the purpose by the Bond Registrar,
duly endorsed by, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Bond
Registrar and duly executed by the registered owner or such owner’s attorney duly authorized in writing, the
Commission shall execute and the Bond Registrar shall authenticate, date and deliver in the name of the registered
owner, transferee or transferees (as the case may be) a new fully registered Bond or Bonds of the same maturity and
interest rate of authorized denominations, for a like aggregate principal amount.
The execution by the Commission of any fully registered Bond shall constitute full and due authorization of
such Bond, and the Bond Registrar shall thereby be authorized to authenticate, date and deliver such Bond, provided,
however, the principal amount of outstanding Bonds of each maturity authenticated by the Bond Registrar shall not
exceed the authorized principal amount of Bonds for such maturity less Bonds previously paid.
The Bond Registrar shall not be required to transfer or exchange any Bond following the close of business on
the 15 day of the month next preceding the month in which an interest payment date occurs on such Bond (known as
the record date), nor to transfer or exchange any Bond after notice calling such Bond for redemption has been mailed,
nor during a period of fifteen days next preceding mailing of a notice of redemption of any Bonds.
th
The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner
thereof for all purposes, and payment of the principal of or interest on any Bonds shall be made only to or upon the
order of the registered owner thereof or such owner’s legal representative. All such payments shall be valid and
effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid.
No service charge shall be made for any transfer or exchange of Bonds, but the Commission or the Bond
Registrar may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any transfer or exchange of Bonds except in the case of the issuance of a Bond or Bonds for the
unredeemed portion of a bond surrendered for redemption.
THE LEASE AGREEMENT
The Commission has entered into a Lease Agreement with the District for the facilities to be constructed out of
the proceeds of the Bonds and related sites (the “Lease”). The term of the Lease is through October 31, 2030. The
following is a summary of the Lease. Reference should made to the lease for full details.
32
Completion of Facilities and Rentals
The Commission will use its best efforts to complete the facilities with reasonable promptness, but the District
does not have the right to cancel or terminate the Lease or to reduce the rental payment, including in the event of
failure to complete, or if the facilities become untenantable for any reason whatsoever at any time during the term of
the Lease, or if the construction of the facilities is modified due to lack of funds.
Rental Amounts
The following rental payments are due on or before November 1 of each calendar year as follows:
2010....................... $ 1,774,473
2011....................... 2,201,235
2012....................... 2,540,082
2013....................... 9,046,934
2014....................... 10,554,063
2015....................... 11,706,481
2016....................... 11,969,204
2017....................... 13,277,245
2018....................... 13,785,619
2019....................... 14,494,344
2020....................... 14,303,435
2021....................... 14,312,910
2022....................... 14,322,787
2023....................... 14,133,087
2024....................... 16,497,208
2025....................... 17,321,882
2026....................... 17,186,880
2027....................... 16,016,060
2028....................... 15,857,057
2029....................... 16,993,262
The rentals are a direct obligation of the District for which sufficient continuing unlimited ad valorem taxes will
be levied on all taxable property in the District. Such separate taxes, to be collected in the years of 2010 through 2029,
must be extended by the County Clerk in accordance with the continuing tax levy which has been filed with the Lease,
and without any additional action by the District or the Commission. The funds realized from such tax levy shall not be
disbursed for any purpose other than payment of rent.
The rentals are net of the amount of Build America Payments anticipated to be collected by the Commission in
each bond year (December 1 and June 1).
Operation and Maintenance of the Facilities
The Commission shall be responsible for the maintenance, operation, upkeep and safekeeping of the Facilities
(as hereinafter defined) and the District shall agree to pay the Commission therefor. The Commission shall hire the
District to undertake such maintenance, operation, upkeep and safekeeping pursuant to and in accordance with a
maintenance service agreement by and between the Commission and the District (the “Maintenance Service
Agreement”).
33
Lease Noncancelable
The Lease is noncancelable by the District, and the District is required to pay the rent to the Commission free
of any deductions and without abatement, deduction or setoff for any reason or cause whatsoever except for: (1) credits
at the discretion of the Commission from funds in the Surplus Revenue Account of the Commission at the end of the
prior year, and (2) when all the Bonds have been paid or provision made for full payment including interest.
Insurance
The Commission and District shall require and procure or cause to be procured from the contractor(s) builder's
risk insurance in an amount not less than one hundred percent (100%) of the contract less non-insurable items. The
Commission will insure and at all times keep the Facilities insured and carry or cause to be carried such worker's
compensation or employer's liability as may be deemed necessary or advisable under law. Unless otherwise provided
in the Maintenance Service Agreement, the Commission will not carry insurance of any kind on furniture or
furnishings, fixtures, equipment, etc. removable by the District, such insurance to be provided by the District. The
District shall save the Commission harmless and indemnified at all times against any loss, cost, damage or expense by
reason of any accident, loss, casualty or damage.
THE BOND RESOLUTION
The Board of Commissioners of the Commission has adopted a Bond Resolution authorizing the issuance of the
Bonds. The Resolution describes the Project and determines the period of usefulness of the Project to be not less than
20 years. The fiscal year of the Commission begins on the first day of November and ends on the last day of October
of the succeeding year. The revenues securing the Bonds also secure, in part, the 2008A Bonds, the 2009A Bonds and
2009B Bonds, as discussed below. The 2008A Bonds were issued to pay the cost of purchasing and installing
improvements to, improving the sites of, building and equipping additions to and altering, repairing and equipping four
school buildings (the “Richwoods Project”), the sites thereof leased to the District pursuant to a lease made as of
December 4, 2008 (the “2008A Lease”). The 2009A Bonds were issued to pay the cost of acquiring and improving
school sites surrounding the existing Glen Oak Primary School Building and building and equipping a new birth through
eight grade community learning center (the “Glen Oak Project”), the site thereof leased to the District pursuant to a
lease made as of February 4, 2009 (the “2009A Lease”). The 2009B Bonds were issued to finance the acquisition of
22 acres of property directly across the street from the current Harrison School and to replace the school currently
serving approximately 300 pre-k through fifth grade students with a new birth through eighth grade community learning
center with capacity for about 650 students (the “Harrison Project”), the site thereof leased to the District pursuant to a
lease made as of April 8, 2009 (the “2009B Lease”). Reference should made to the complete Bond Resolution for all
details. The following is a summary.
Flow of Funds
Revenue Fund
All revenues derived from the operation, management or use of the public buildings and other improvements
financed with proceeds of the 2008A Bonds, the 2009A Bonds, the 2009B Bonds, Richwoods Project Additional Bonds
(as hereinafter defined), Glen Oak Project Additional Bonds (as hereinafter defined), Harrison Project Additional Bonds
(as hereinafter defined), the Bonds and Additional Bonds (as hereinafter defined) (collectively, the “Facilities”),
including all payments under any leases of the Facilities and related sites (the “Revenues”), shall be kept separate and
apart from all other Commission funds and deposited in the Revenue Fund established under the Bond Resolution. As
monies are received, they are to be credited to the following respective accounts of the Revenue Fund and in the order
listed and for the purposes described.
34
Operating and Maintenance Account
There shall first be credited to this account an amount sufficient to pay the reasonable expenses required of the
Commission for the operation, maintenance, repair and replacement of the Facilities for the fiscal year in accordance
with the budget. The amount credited to this account in any fiscal year shall not exceed the amounts shown in the
exhibit attached to the Bond Resolution until all other accounts of the Bond Resolution have been credited with the
required amounts. If any obligations imposed on the Commission increase the expenses to the Commission, the
amounts to be deposited to this account may be increased by the amount of additional rentals received for the purpose
of meeting such obligations.
Bond and Interest Account (Series 2008A Bonds (Richwoods Project))
The Commission is to credit to this account an amount sufficient in each fiscal year to pay interest and principal
on all 2008A Bonds and all Richwoods Project Additional Bonds which become due during such fiscal year.
Bond and Interest Account (Series 2009A Bonds (Glen Oak Project))
on all 2009A Bonds and all Glen Oak Project Additional Bonds which become due during such fiscal year.
Bond and Interest Account (Series 2009B Bonds (Harrison Project))
on all 2009B Bonds and all Harrison Project Additional Bonds which become due during such fiscal year.
Bond and Interest Account (Series 2009C Bonds (Lincoln Middle and Peoria High Schools Project))
on all Bonds and all Additional Bonds which become due during such fiscal year. When received by the Commission,
the Build America Payments will be deposited into this account. The Commission may also loan funds to the credit of
the Project Fund (as defined in the Bond Resolution) to this account in order to prevent or make up deficiencies therein.
Bond Reserve Account
This account shall be credited with the sum of proceeds of the Bonds in the amount of $340,000 upon closing
on the Bonds and the sum of $150,000 in the fiscal year ending October 31, 2014, and $200,000 for each fiscal year
thereafter through fiscal 2029 and $50,000 in the fiscal year ending October 31, 2030, plus such sums, if any, as may
have been transferred from this account to any of the bond and interest accounts discussed above. Money in this
account is to be used to pay maturing principal or interest on the 2008A Bonds or Richwoods Project Additional Bonds,
the 2009A Bonds or Glen Oak Project Additional Bonds, the 2009B Bonds or Harrison Project Additional Bonds or the
Bonds or Additional Bonds whenever funds are not available in the applicable Bond and Interest Account. Monies in
this account in excess of the maximum annual debt service due on the 2008A Bonds or Richwoods Project Additional
Bonds, the 2009A Bonds or Glen Oak Project Additional Bonds, the 2009B Bonds or Harrison Project Additional
Bonds or the Bonds or Additional Bonds in any subsequent fiscal year shall be transferred to the Surplus Revenue
Account. In the event that any moneys shall be withdrawn from the Bond Reserve Account for payment to any bond
and interest accounts, the Commission shall replenish the Bond Reserve Account at the rate of one-twelfth of the
amount so withdrawn per month or in the amount of $50,000 per year, whichever is greater, until such withdrawn
amount is repaid in full.
35
Major Repairs and Replacement Account
There shall be credited annually to this account, after making the foregoing credits, an amount not to exceed
$150,000 each year beginning in the fiscal year ending October 31, 2014, and $200,000 for each fiscal year thereafter
and $50,000 in the fiscal year ending October 31, 2030. Funds in this account may be used to make major repairs and
replacements on the Facilities. Any such major repairs or replacements costing $250,000 or more shall be made only
upon an architect's certification that such repairs and replacements are necessary to maintain or restore the building to a
condition suitable to its intended use. The Commission's responsibility for repairs and replacements is limited to those
which may be made, in whole or in part, from funds available in this Account. Monies in this Account not committed
to a specific repair or replacement project shall be used to pay maturing principal and interest on the 2008A Bonds or
Richwoods Project Additional Bonds, the 2009A Bonds or Glen Oak Project Additional Bonds, the 2009B Bonds or
Harrison Project Additional Bonds or the Bonds or Additional Bonds as necessary to avoid a default and may be used,
at the discretion of the Commission, to pay expenses payable from the Operation and Maintenance Account at any time
when credits to the Operation and Maintenance Account are inadequate for such purpose.
Surplus Revenue Account
After crediting the required amount to the foregoing accounts, all money remaining in the Revenue Fund shall
be credited to the Surplus Revenue Account and, at the discretion of the Commission, such account shall first be used to
complete the Richwoods Project, Glen Oak Project, the Harrison Project or the Project if the respective bond proceeds
were insufficient therefor; make up or prevent any deficiency in any bond and interest account; and thereafter to
improve, repair or replace the Facilities; to be credited to the Operation and Maintenance Account; to be used for the
purchase in the open market of any of the 2008A Bonds or Richwoods Project Additional Bonds, the 2009A Bonds or
Glen Oak Project Additional Bonds, the 2009B Bonds or Harrison Project Additional Bonds or the Bonds or Additional
Bonds; or to credit the next rental payment due under the 2008A Lease, 2009A Lease, 2009B Lease or the Lease.
Whenever the funds in the Surplus Revenue Account and together with the funds in the bond and interest accounts are
sufficient to pay all interest to maturity plus the principal thereof on all 2008A Bonds or Richwoods Project Additional
Bonds, the 2009A Bonds or Glen Oak Project Additional Bonds, the 2009B Bonds or Harrison Project Additional
Bonds or the Bonds or Additional Bonds, then the remainder in the Surplus Revenue Account may be used for any legal
purpose.
Monies in any of the accounts, except the Operation and Maintenance Account, shall be used whenever needed
to pay principal and interest on the Bonds in order to avoid a default.
Defeasance of Bonds
Bonds which are no longer outstanding will cease to have any lien on the Revenues and will no longer have the
benefits of any covenant for the registered owners of outstanding Bonds as such relates to lien and security for the
Bonds in the Revenues. Bonds which are no longer outstanding are those bonds (i) which have matured and for which
moneys are on deposit with proper paying agents or are otherwise sufficiently available to pay all principal thereof and
interest thereon or (ii) the provision for payment of which has been made by the Commission by the deposit in an
irrevocable trust or escrow of funds or direct, full faith and credit obligations of the United States of America, the
principal of and interest on which will be sufficient to pay at maturity or as called for redemption the principal and
interest of such Bonds.
Depositary and Investments
Monies in any of the accounts shall be invested in direct or fully guaranteed obligations of the United States
Government or in certificates of deposit secured by such obligations, maturing not later than 15 days prior to when the
money will be needed but in no event later than three years from the date of investment. Uninvested money shall be
kept on demand deposit in a bank or banks selected as depositary by the Commission, but the Bond and Interest
Accounts shall be kept in a bank account separate and apart from all other bank accounts. Any investment earnings or
losses will be credited to the account from which such monies were invested.
36
Additional Bonds
No bonds having a prior lien or pledge on the revenues from the Facilities may be issued. Additional revenue
bonds secured by a supplemental lease of the Richwoods Project may be issued on a parity with the 2008A Bonds (the
“Richwoods Project Additional Bonds”). Additional revenue bonds secured by a supplement lease of the Glen Oak
Project may be issued on a parity with the 2009A Bonds (the “Glen Oak Project Additional Bonds”). Additional
revenue bonds secured by a supplement lease of the Harrison Project may be issued on a parity with the 2009B Bonds
(the “Harrison Project Additional Bonds”). Additional revenue bonds secured by a supplemental lease of the Project
may be issued on a parity with the Bonds (the “Additional Bonds”). Additional refunding bonds may also be issued to
refund maturing 2008A Bonds, 2009A Bonds, 2009B Bonds or Bonds provided the bonds to be refunded mature within
sixty days from the date of refunding and such refunding is necessary to prevent a default in the payment of such bond
at maturity. Any such refunding shall share ratably and equally with the unrefunded bonds. Any parity bonds shall
mature on December 1 of each year.
General Covenants
Covenant to Charge Sufficient Rates
The Commission covenants in the Bond Resolution to charge rates and rentals for use and service of the
Facilities sufficient at all times to pay certain costs of operation and maintenance including the expenses of the
Commission, interest and principal on all of the Bonds and any parity bonds, and to provide and maintain the accounts
created by the Bond Resolution. The Commission further covenants not to sell, loan, mortgage or in any manner
dispose of such facilities, including improvements until all bonds have been paid or provision made for payment. The
Commission further covenants with the holders of the Bonds that any holder may by mandamus or other civil action
enforce or compel performance by the Commission of all duties required by law and the Bond Resolution. In addition,
the Resolution provides that all payments under the Lease between the Commission and the District for the Facilities
shall inure to the benefit of the holder of any of the Bonds. The Commission agrees that it will not make or consent to
any change in the Lease which would reduce the rentals or extend the time for payment.
Accounts and Audits
The Commission covenants to keep books, records and accounts relating to the project and its operation
separate and apart from all other records of the Commission. The Commission will, not more than 90 days following
the close of each fiscal year, cause an audit of such books and accounts to be made by a certified public accountant and
will make such audit available for inspection to any bondholder.
Resolution to be a Contract
The Resolution provides that it is a contract between the Commission and the bondholders and that after the
issuance of the Bonds, no changes, additions or alterations may be made therein until all of the Bonds and the interest
on the Bonds has been paid, or provision made therefor, except that the Resolution may be modified by the
Commission but only with the consent in writing of the Insurer and the holders of not less than 66-2/3% of the Bonds at
any time outstanding and no such modification shall extend the maturity of or reduce the principal of or interest rate on
any Bonds without consent of the holders thereof or impair the obligation of the Commission to pay principal and
interest at the time provided nor reduce the percentage of holder of the Bonds required to consent to any modification of
the Resolution.
37
$30,200,000
City of Peoria, Illinois
Taxable School District Facilities Revenue Bonds, Series 2009C
(Lincoln Middle and Peoria High Schools Project)(1)
(Build America Bonds – Direct Payment to Issuer)
Fiscal
Year
Rental due
Ending
First Day of
31-Oct
Fiscal Year
2011 ......... $ 1,774,473
2012 .........
2,201,235
2013 .........
2,540,082
2014 .........
9,046,934
2015 ......... 10,554,063
2016 ......... 11,706,481
2017 ......... 11,969,204
2018 ......... 13,277,245
2019 ......... 13,785,619
2020 ......... 14,494,344
2021 ......... 14,303,435
2022 ......... 14,312,910
2023 ......... 14,322,787
2024 ......... 14,133,087
2025 ......... 16,497,208
2026 ......... 17,321,882
2027 ......... 17,186,880
2028 ......... 16,016,060
2029 ......... 15,857,057
2030 ......... 16,993,262
Total ...... $248,294,247
Notes:
(1)
(2)
Maximum PBC
Expenses
$ 1,255,500
1,201,991
1,268,422
3,575,274
3,582,403
3,589,821
3,597,544
3,605,585
3,613,959
3,622,684
3,631,775
3,641,250
3,651,127
3,661,427
3,672,169
3,683,375
3,695,067
3,707,269
3,720,005
1,572,487
$63,549,133
Available for
Debt Service
$
518,973
999,244
1,271,660
5,471,660
6,971,660
8,116,660
8,371,660
9,671,660
10,171,660
10,871,660
10,671,660
10,671,660
10,671,660
10,471,660
12,825,039
13,638,508
13,491,814
12,308,791
12,137,051
15,420,775
$184,745,114
Series 2008A
Debt Service
$
0
0
0
0
1,500,000
2,245,000
2,400,000
2,900,000
3,300,000
3,300,000
1,000,000
1,000,000
1,000,000
500,000
500,000
500,000
500,000
500,000
500,000
0
$21,645,000
Series 2009A
Debt Service
$
0
0
0
2,500,000
2,800,000
2,900,000
2,900,000
2,900,000
3,200,000
4,000,000
4,000,000
3,000,000
3,500,000
4,800,000
5,000,000
4,500,000
5,000,000
1,800,000
2,000,000
0
$54,800,000
Series 2009B
Debt Service
$
0
0
0
1,400,000
1,000,000
1,300,000
1,400,000
2,200,000
2,000,000
1,900,000
4,000,000
5,000,000
4,500,000
3,500,000
3,500,000
5,100,000
3,750,000
5,000,000
4,000,000
0
$49,550,000
Interest(2)
$ 518,973
999,244
1,271,660
1,271,660
1,271,660
1,271,660
1,271,660
1,271,660
1,271,660
1,271,660
1,271,660
1,271,660
1,271,660
1,271,660
1,225,039
1,138,508
1,041,814
908,791
737,051
320,775
$22,150,114
Series 2009C
Principal
$
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,200,000
2,000,000
2,800,000
3,700,000
4,500,000
15,000,000
$30,200,000
Source: The District and the Public Building Commission. Original Principal amounts are shown for capital appreciation bonds.
Net of capitalized interest and Build America Bond Payments anticipated to be collected by the Commission.
38
Total
518,973
999,244
1,271,660
1,271,660
1,271,660
1,271,660
1,271,660
1,271,660
1,271,660
1,271,660
1,271,660
1,271,660
1,271,660
1,271,660
3,425,039
3,138,508
3,841,814
4,608,791
5,237,051
15,320,775
$52,350,114
$
Coverage
1.00X
1.00X
1.00X
1.06X
1.06X
1.05X
1.05X
1.04X
1.04X
1.04X
1.04X
1.04X
1.04X
1.04X
1.03X
1.03X
1.03X
1.03X
1.03X
1.01X
Bond
Reserve
Account
$ 340,000
0
0
150,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
50,000
$3,540,000
Major
Repairs and
Replacement
Account
$
0
0
0
150,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
200,000
50,000
$3,200,000
TAX MATTERS
Taxable Bonds
Interest on the Bonds is includible in gross income for federal income purposes. Ownership of the Bonds may
result in other federal income tax consequences to certain taxpayers. Bondholders should consult their tax advisors with
respect to the inclusion of interest on the Bonds in gross income for federal income tax purposes and any collateral tax
consequences. 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, and Bond Counsel expresses no opinion
regarding any such consequences arising with respect to the Bonds.
See APPENDIX D for a proposed form of Bond Counsel opinion for the Bonds.
Build America Bonds
As part of the American Recovery and Reinvestment Act of 2009 (the “Recovery Act”), Congress added
provisions to the Internal Revenue Code of 1986, as amended (the “Code”) that permit state or local governments to
obtain certain tax advantages when issuing certain taxable obligations, referred to as “Build America Bonds.” A Build
America Bond must satisfy certain requirements, including that the interest on the Build America Bonds would be, but
for the issuer’s election to treat such bonds as Build America Bonds, excludable from gross income under Section 103
of the Code. The Commission and the District intend to make or have made an irrevocable election to treat the Bonds
(other than a portion of the Bonds maturing on December 1, 2024, in the amount of $325,000) as Build America
Bonds. The Commission and the District also intend to make or have made an irrevocable election to treat the Bonds
(other than a portion of the Bonds maturing on December 1, 2024, in the amount of $325,000) as Build America Bonds
that are “qualified bonds” as defined in the Code. As a result of these elections, interest on the Bonds will be
includible in gross income of the holders thereof for federal income tax purposes and the holders of the Bonds will not
be entitled to any tax credits as a result either of ownership of the Bonds or of receipt of any interest payments on the
Bonds. Bondholders should consult their tax advisors with respect to the inclusion of interest on the Bonds in gross
income for federal income tax purposes.
Federal tax law contains a number of requirements and restrictions that apply to Bonds in order for them to be
Build America Bonds and “qualified 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 Commission and the District have covenanted to comply with requirements that must be
satisfied in order for the Bonds to be qualified Build America Bonds. Failure to comply with certain of such covenants
could cause Bonds to not be qualified Build America Bonds (and consequently could prevent the allowance of Build
America Payments described below) retroactively to the date of issuance of the Bonds.
As a consequence of Bonds being Build America Bonds and “qualified bonds” under Section 54AA of the
Code, the Commission will be entitled to apply for certain tax credits under Section 6431 of the Code (the “Build
America Payments”). If for any reason Bonds cease to be Build America Bonds that are “qualified bonds” under
Section 54AA of the Code, the Commission will not be entitled to receive such Build America Payments.
Under Section 6431 of the Code, the Commission will apply to receive Build America Payments directly from
the Secretary of the U.S. Treasury. The amount of each Build America Payment is set in Section 6431 of the Code at
35 percent of the corresponding interest payable on the related qualified Build America Bond. If received by the
Commission, the Build America Payments will be revenues of the Commission and are pledged to the payment of the
Bonds.
To receive a Build America Payment, under currently existing procedures, the Commission is required to file a
tax return between 90 and 45 days prior to each interest payment date. The procedures provide that the Commission
should expect to receive the Build America Payment within 45 days of filing the return. Depending on the timing of
the filing, the Build America Payment may be received before or after the corresponding interest payment.
39
No assurances are provided that the Commission will receive Build America Payments. The amount of any
Build America Payment is subject to legislative changes by Congress. There are currently no procedures for requesting
a Build America Payment after the 45th day prior to an interest payment date; therefore, if the Commission fails to file
the necessary tax return in a timely fashion, it is possible that the Commission will never receive such Build America
Payment. Also, Build America Payments are subject to offset against certain amounts that may, for unrelated reasons,
be owed by the Commission to an agency of the United States of America.
Circular 230
This Final Official Statement contains tax advice written to market the Bonds. This subsection is informing
Bondholders of the following as required under Treas. Reg. §10.35 which is contained in the rules of practice before
the Internal Revenue Service, commonly known as Circular 230.
The tax advice contained in this Final Official Statement is not intended or written by the Commission or the
District, 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 Final 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.
The Commission, the District and its Bond Counsel impose no restrictions or limitations on disclosing the
content of this Final Official Statement or of any details of the structure of the Bonds or on the tax treatment or tax
structure of the Bonds and the use of proceeds thereof.
CONTINUING DISCLOSURE – THE COMMISSION AND THE DISTRICT
The Commission and the District will enter into a Continuing Disclosure Undertaking (the “Undertaking”) for
the benefit of the beneficial owners of the Bonds to send certain information annually and to provide notice of certain
events to the Municipal Securities Rulemaking Board (the “MSRB”) pursuant to the requirements of Section (b)(5) of
Rule 15c2-12 (the “Rule”) adopted by the Securities and Exchange Commission (the “Commission”) under the
Securities Exchange Act of 1934. The information to be provided on an annual basis, the events which will be noticed
on an occurrence basis and a summary of other terms of the Undertaking, including termination, amendment and
remedies, are set forth below under “THE UNDERTAKING.”
The Commission and the District represents that it is in compliance with each and every undertaking previously
entered into it pursuant to the Rule. A failure by the Commission or the District to comply with the Undertaking will
not constitute a default under the Ordinance and beneficial owners of the Bonds are limited to the remedies described
in the Undertaking. See “THE UNDERTAKING - Consequences of Failure of the Commission or the District to
Provide Information.” A failure by the Commission or the District to comply with the Undertaking must be reported
in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer before
recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may adversely
affect the transferability and liquidity of the Bonds and their market price.
Bond Counsel expresses no opinion as to whether the Undertaking complies with the requirements of Section
(b)(5) of the Rule.
THE UNDERTAKING
The following is a brief summary of certain provisions of the Undertaking of the Commission and the District
and does not purport to be complete. The statements made under this caption are subject to the detailed provisions of
the Undertaking, a copy of which is available upon request from the Commission.
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Annual Financial Information Disclosure
The Commission and the District covenants that it will disseminate its Annual Financial Information and its
Audited Financial Statements, if any (as described below) to the MSRB in such manner and format and accompanied by
identifying information as is prescribed by the MSRB or the Commission at the time of delivery of such information.
The Commission and the District are required to deliver such information so that such entities receive the information
by the dates specified in the Undertaking.
“Annual Financial Information” means
1.
2.
3.
All of the tables under the heading “PROPERTY ASSESSMENT AND TAX
INFORMATION” within this Final Official Statement;
All of the tables under the heading “DISTRICT DEBT INFORMATION” within this Final
Official Statement; and
All of the tables under the heading “DISTRICT FINANCIAL INFORMATION” within this
Final Official Statement.
Material Events Disclosure
The Commission and the District covenants that it will disseminate in a timely manner to the MSRB the
disclosure of the occurrence of an Event (as described below) with respect to the Bonds that is material, as materiality
is interpreted under the Securities Exchange Act of 1934, as amended, in such manner and format and accompanied by
identifying information as is prescribed by the MSRB or the Commission at the time of delivery of such information.
The “Events” are:
•
•
•
•
•
•
•
•
•
•
•
Principal and interest payment delinquencies
Non-payment related defaults
Unscheduled draws on debt service reserves reflecting financial difficulties
Unscheduled draws on credit enhancements reflecting financial difficulties
Substitution of credit or liquidity providers, or their failure to perform
Adverse tax opinions or events affecting the tax-exempt status of the security
Modifications to the rights of security holders
Bond calls
Defeasances
Release, substitution or sale of property securing repayment of the securities
Rating changes
Consequences of Failure of the Commission or the District to Provide Information
The Commission and the District shall give notice in a timely manner to the MSRB of any failure to provide
disclosure of Annual Financial Information and Audited Financial Statements when the same are due under the
Undertaking.
In the event of a failure of the Commission or the District to comply with any provision of the Undertaking, the
beneficial owner of any Bond may seek mandamus or specific performance by court order to cause the Commission or
the District to comply with its obligations under the Undertaking. A default under the Undertaking shall not be deemed
a default under the Ordinance, and the sole remedy under the Undertaking in the event of any failure of the
Commission or the District to comply with the Undertaking shall be an action to compel performance.
41
Amendment; Waiver
Notwithstanding any other provision of the Undertaking, the Commission and the District by resolution or
ordinance authorizing such amendment or waiver, may amend the Undertaking, and any provision of the Undertaking
may be waived, if:
(a)
(i)
The amendment or the waiver is made in connection with a change in circumstances that arises
from a change in legal requirements, including, without limitation, pursuant to a “no-action” letter issued by
the Commission, a change in law, or a change in the identity, nature, or status of the Commission or the
District, or type of business conducted; or
(ii)
The Undertaking, as amended, or the provision, as waived, would have complied with the
requirements of the Rule at the time of the primary offering, after taking into account any amendments or
interpretations of the Rule, as well as any change in circumstances; and
(b)
The amendment or waiver does not materially impair the interests of the beneficial owners of the
Bonds, as determined by parties unaffiliated with the Commission (such as Bond Counsel).
In the event that the Commission or the MSRB or other regulatory authority approves or requires Annual
Financial Information or notices of a material Event to be filed with a central post office, governmental agency or
similar entity other than the MSRB or in lieu of the MSRB, the Commission or the District shall, if required, make
such dissemination to such central post office, governmental agency or similar entity without the necessity of amending
the Undertaking.
Termination of Undertaking
The Undertaking shall be terminated if the Commission or the District shall no longer have any legal liability
for any obligation on or relating to repayment of the Bonds under the Bond Resolution. The Commission or the
District shall give notice to the MSRB in a timely manner if this paragraph is applicable.
Additional Information
Nothing in the Undertaking shall be deemed to prevent the Commission or the District from disseminating any
other information, using the means of dissemination set forth in the Undertaking or any other means of communication,
or including any other information in any Annual Financial Information or Audited Financial Statements or notice of
occurrence of a material Event, in addition to that which is required by the Undertaking. If the Commission or the
District chooses to include any information from any document or notice of occurrence of a material Event in addition
to that which is specifically required by the Undertaking, the Commission or the District shall have no obligation under
the Undertaking to update such information or include it in any future disclosure or notice of occurrence of a material
Event.
Dissemination of Information; Dissemination Agent
When filings are required to be made with the MSRB in accordance with the Undertaking, such filings are
required to be made through its Electronic Municipal Market Access (EMMA) system for municipal securities
disclosure or through any other electronic format or system prescribed by the MSRB for purposes of the Rule.
The Commission or the District may, from time to time, appoint or engage a Dissemination Agent to assist it in
carrying out its obligations under the Undertaking, and may discharge any such Agent, with or without appointing a
successor Dissemination Agent.
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OPTIONAL REDEMPTION
The Bonds are callable in whole or in part on any date on or after December 1, 2019, at a price of par and
accrued interest. If less than all the Bonds are called, they shall be redeemed in such principal amounts and from such
maturities as determined by the Commission and within any maturity by lot.
The Bond Registrar will give notice of redemption, identifying the Bonds (or portions thereof) to be redeemed,
by mailing a copy of the redemption notice by first class mail not less than thirty (30) days nor more than sixty (60)
days prior to the date fixed for redemption to the registered owner of each Bond (or portion thereof) to be redeemed at
the address shown on the registration books maintained by the Bond Registrar. Unless moneys sufficient to pay the
redemption price of the Bonds to be redeemed are received by the Bond Registrar prior to the giving of such notice of
redemption, such notice may, at the option of the Commission, state that said redemption will be conditional upon the
receipt of such moneys by the Bond Registrar on or prior to the date fixed for redemption. If such moneys are not
received, such notice will be of no force and effect, the Commission will not redeem such Bonds, and the Bond
Registrar will give notice, in the same manner in which the notice of redemption has been given, that such moneys
were not so received and that such Bonds will not be redeemed. Otherwise, prior to any redemption date, the
Commission will deposit with the Bond Registrar an amount of money sufficient to pay the redemption price of all the
Bonds or portions of Bonds which are to be redeemed on the date.
Subject to the provisions for a conditional redemption described above, notice of redemption having been given
as described above and in the Bond Resolution, the Bonds or portions of Bonds so to be redeemed will, on the
redemption date, become due and payable at the redemption price therein specified, and from and after such date
(unless the Commission shall default in the payment of the redemption price) such Bonds or portions of Bonds shall
cease to bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds will
be paid by the Bond Registrar at the redemption price.
LITIGATION
There is no litigation of any nature now pending or threatened restraining or enjoining the issuance, sale,
execution or delivery of the Bonds, or in any way contesting or affecting the validity of the Bonds or any proceedings
of the Commission and the District taken with respect to the issuance or sale thereof.
FINAL OFFICIAL STATEMENT AUTHORIZATION
This Final Official Statement has been authorized for distribution to prospective purchasers of the Bonds. All
statements, information, and statistics herein are believed to be correct but are not guaranteed by the consultants or by
of the Commission and the District, and all expressions of opinion, whether or not so stated, are intended only as such.
BOND INSURANCE RISK FACTORS
Assured Guaranty Corp. (“Assured Guaranty”) has made a commitment to issue a financial guaranty insurance
policy relating to the Bonds. Reference is made to APPENDIX C for the Bond Insurance and the Specimen Bond
Insurance Policy and certain information with respect to the Bond Insurer.
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In the event of default of the payment of principal or interest with respect to the Bonds when all or some
becomes due, any owner of the Bonds shall have a claim under the applicable Bond Insurance Policy (the Policy) for
such payments. However, in the event of any acceleration of the due date of such principal by reason of mandatory or
optional redemption or acceleration resulting from default or otherwise, other than any advancement of maturity
pursuant to a mandatory sinking fund payment, the payments are to be made in such amounts and at such times as such
payments would have been due had there not been any such acceleration. The Policy does not insure against
redemption premium, if any. The payment of principal and interest in connection with mandatory or optional
prepayment of the Bonds by the issuer which is recovered by the issuer from the bond owner as a voidable preference
under applicable bankruptcy law is covered by the insurance policy, however, such payments will be made by the
Insurer at such time and in such amounts as would have been due absent such prepayment by the Commission unless
the Bond Insurer chooses to pay such amounts at an earlier date.
Under most circumstances, default of payment of principal and interest does not obligate acceleration of the
obligations of the Bond Insurer without appropriate consent. The Bond Insurer may direct and must consent to any
remedies that the Bondholders exercise and the Bond Insurer’s consent may be required in connection with amendments
to the documents authorizing the issuance of the Bonds and providing the security for the repayment of such Bonds.
In the event the Bond Insurer is unable to make payment of principal and interest as such payments become due
under the Policy, the Bonds are payable solely from the moneys received by the Commission pursuant to the Lease. In
the event the Bond Insurer becomes obligated to make payments with respect to the Bonds, no assurance is given that
such event will not adversely affect the market price of the Bonds or the marketability (liquidity) for the Bonds.
The long-term ratings on the Bonds are dependent in part on the financial strength of the Bond Insurer and its
claim paying ability. The Bond Insurer’s financial strength and claims paying ability are predicated upon a number of
factors which could change over time. No assurance is given that the long-term ratings of the Bond Insurer and of the
ratings on the Bonds insured by the Bond Insurer will not be subject to downgrade and such event could adversely
affect the market price of the Bonds or the marketability (liquidity) for the Bonds. See “Insured Investment Rating”
herein.
The obligations of the Bond Insurer are general obligations of the Bond Insurer and in an event of default by the
Bond Insurer, the remedies available to the Bondholders may be limited by applicable bankruptcy law or other similar
laws related to insolvency.
Neither the Commission or Underwriters have made independent investigation into the claims paying ability of
the Bond Insurer and no assurance or representation regarding the financial strength or projected financial strength of
the Bond Insurer is given.
INSURED INVESTMENT RATING
Standard & Poor's Ratings Group, a division of McGraw Hill, is expected to assign the Bonds a rating of
"AAA" (negative outlook). This rating is conditioned upon the delivery by Assured Guaranty Corp. (“Assured
Guaranty”) of its standard form of Financial Guaranty Insurance Policy. No application was made to any other rating
agency for the purpose of obtaining an additional rating on the Bonds. Generally, rating agencies base their ratings on
such information and materials and investigations, studies and assumptions by the respective rating agency. There is no
assurance that such rating will continue for any given period of time or that it will not be revised downward or
withdrawn entirely by such rating agency if, in its judgment, circumstances so warrant. Any such downward revision
or withdrawal of such rating may have an adverse effect on the market price of the Bonds. The District and the
Underwriters have undertaken no responsibility either to bring to the attention of the registered owners of the Bonds
any proposed change in or withdrawal of such rating or to oppose any such revision or withdrawal (other than to
comply with any applicable continuing disclosure requirements). An explanation of the significance of investment
ratings may be obtained from the rating agency: Standard & Poor’s Investors Service, 55 Water Street, New York,
New York 10041.
44
UNDERLYING INVESTMENT RATING
The Bonds have been rated "A+" by Standard & Poor’s Corporation. The District has supplied certain
information and material concerning the Bonds and the District to the rating service shown on the cover page as part of
its application for an investment rating on the Bonds. Generally, such rating service bases its rating on such
information and material, and also on such investigations, studies and assumptions that it may undertake independently.
There is no assurance that such rating will continue for any given period of time or that it may not be lowered or
withdrawn entirely by such rating service if, in its judgment, circumstances so warrant. Any such downward change in
or withdrawal of such rating may have an adverse effect on the secondary market price of the Bonds. The District and
the Underwriters have undertaken no responsibility either to bring to the attention of the registered owners of the Bonds
any proposed change in or withdrawal of such rating or to oppose any such revision or withdrawal (other than to
comply with any applicable continuing disclosure requirements). An explanation of the significance of investment
ratings may be obtained from the rating agency: Standard & Poor’s Corporation, 55 Water Street, New York, New
York 10041, telephone 212-438-2000.
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 Commission. Bond Counsel has not been retained or consulted on
disclosure matters and has not undertaken to review or verify the accuracy, completeness or sufficiency of this Final
Official Statement or other offering material relating to the Bonds and assumes no responsibility for the statements or
information contained in or incorporated by reference in this Final Official Statement, except that in its capacity as
Bond Counsel, Chapman and Cutler LLP, Chicago, Illinois, has, at the request of the Commission and the District
supplied the information under the headings “TAX MATTERS” and “CERTAIN LEGAL MATTERS”. Certain
legal matters will be passed upon for the Commission by Davis & Campbell LLC, Peoria, Illinois, for the District by
Kavanagh, Scully, Sudow, White & Frederick, P.C., Peoria, Illinois, and for the Underwriters by their counsel, Barnes
& Thornburg LLP, Indianapolis, Indiana.
UNDERWRITING
Pursuant to the terms of a Bond Purchase Agreement, Mesirow Financial, Inc., Chicago, Illinois, Edward D.
Jones & Co., L.P., St. Louis, Missouri, BMO Capital Markets GKST Inc., Chicago, Illinois and Bank of America
Merrill Lynch, Chicago, Illinois (the “Underwriters”), have agreed to purchase the Bonds at a price of $29,928,200.00
(which represents the principal amount of the Bonds of $30,200,000, less the underwriter’s discount of $271,800.00).
The Bond Purchase Agreement provides that the obligation of the Underwriters are subject to certain conditions
precedent and that the Underwriters will be obligated to purchase all of the Bonds if any of the Bonds are purchased.
The Bonds may be offered and sold to certain dealers (including dealers depositing such Bonds into investment trusts,
accounts or funds) and others at prices lower than the initial public offering price. After the initial public offering, the
public offering price of the Bonds may be changed from time to time by the Underwriters.
45
FINANCIAL ADVISOR
The Commission has engaged Speer Financial, Inc. as financial advisor (the “Financial Advisor”) in connection
with the issuance and sale of the Bonds. The Financial Advisor will not participate in the underwriting of the Bonds.
The financial information included in the Final Official Statement has been compiled by the Financial Advisor. Such
information does not purport to be a review, audit or certified forecast of future events and may not conform with
accounting principles applicable to compilations of financial information. The Financial Advisor is not a firm of
certified public accountants and does not serve in that capacity or provide accounting services in connection with the
Bonds. The Financial Advisor is not obligated to undertake any independent verification of or to assume any
responsibility for the accuracy, completeness or fairness of the information contained in this Final Official Statement,
nor is the Financial Advisor obligated by the Commission’s or District’s continuing disclosure undertaking.
CERTIFICATION
We have examined this Final Official Statement dated December 17, 2009, for the and the $30,200,000
Taxable School District Facilities Revenue Bonds, Series 2009C (Lincoln Middle and Peoria High Schools Project)
(Build America Bonds – Direct Payment to Issuer), believe it to be true and correct and will provide to the purchaser of
the Bonds at the time of delivery a certificate confirming to the purchaser that to the best of our knowledge and belief
information in the Official Statement was at the time of acceptance of the bid for the Bonds and, including any addenda
thereto, was at the time of delivery of the Bonds true and correct in all material respects and does not include any
untrue statement of a material fact, nor does it omit the statement of any material fact required to be stated therein, or
necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading.
/s/ DR. NORM DURFLINGER
Interim Superintendent
CITY OF PEORIA,
SCHOOL DISTRICT NUMBER 150
/s/ JAMES C. THORNTON
Executive Secretary
46
APPENDIX A
CITY OF PEORIA, SCHOOL DISTRICT NUMBER 150
PEORIA COUNTY, ILLINOIS
EXCERPTS OF FISCAL YEAR 2009 AUDITED FINANCIAL STATEMENTS
APPENDIX B
DESCRIBING BOOK-ENTRY-ONLY ISSUANCE
1.
The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for
the Bonds (the “Securities”). The Securities 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 Security certificate will be issued for each issue of the Securities, each in the aggregate principal
amount of such issue, and will be deposited with DTC.
2.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the
New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of
the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code,
and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934.
DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and
municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct
Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and
other 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”). DTC has Standard &
Poor’s highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange
Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org.
3.
Purchases of Securities under the DTC system must be made by or through Direct Participants, which
will receive a credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each
Security (“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 Securities 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 Securities, except in the event that use of the book-entry system for the Securities is
discontinued.
4.
To facilitate subsequent transfers, all Securities 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 Securities 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 Securities; DTC’s records reflect only the identity of the Direct Participants to whose
accounts such Securities 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.
B-1
5.
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 Securities may wish to take certain steps to augment the transmission to them of notices of
significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to
the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding
the Securities 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.
6.
Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being
redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be
redeemed.
7.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to
Securities unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual
procedures, DTC mails an Omnibus Proxy to the Commission or the District as soon as possible after the record date.
The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts
Securities are credited on the record date (identified in a listing attached to the Omnibus Proxy).
8.
Redemption proceeds, distributions, and dividend payments on the Securities 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 Commission
or the District or the Paying Agent, on payable date in accordance with their respective holdings shown on DTC’s
records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary
practices, as is the case with 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, the Paying Agent, or the Commission or the District,
subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption
proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an
authorized representative of DTC) is the responsibility of the Commission or the District or the Paying Agent,
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.
9.
A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its
Participant, to any Tender/Remarketing Agent, and shall effect delivery of such Securities by causing the Direct
Participant to transfer the Participant’s interest in the Securities, on DTC’s records, to any Tender/Remarketing Agent.
The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will
be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC’s records
and followed by a book-entry credit of tendered Securities to any Tender/Remarketing Agent’s DTC account.
10.
DTC may discontinue providing its services as depository with respect to the Securities at any time by
giving reasonable notice to the Commission or the District or the Paying Agent. Under such circumstances, in the
event that a successor depository is not obtained, Security certificates are required to be printed and delivered.
The Commission or the District may decide to discontinue use of the system of book-entry-only
11.
transfers through DTC (or a successor securities depository). In that event, Security certificates will be printed and
delivered to DTC.
12.
The information in this section concerning DTC and DTC’s book-entry system has been obtained from
sources that the Commission or the District believes to be reliable, but the Commission or the District takes no
responsibility for the accuracy thereof.
B-2
APPENDIX C
BOND INSURANCE AND SPECIMEN BOND INSURANCE POLICY
The Insurance Policy
Concurrently with the issuance of the Bonds, Assured Guaranty Corp. (“Assured Guaranty” or the “Insurer”) will issue its
financial guaranty insurance policy (the “Policy”) for the Bonds. 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 an exhibit to this Final Official Statement.
The Policy is not covered by any insurance security or guaranty fund established under New York, California, Connecticut
or Florida insurance law.
The Insurer
AGC is a Maryland-domiciled insurance company regulated by the Maryland Insurance Administration and licensed to
conduct financial guaranty insurance business in all fifty states of the United States, the District of Columbia and Puerto Rico.
AGC commenced operations in 1988. AGC is a wholly owned, indirect subsidiary of AGC Ltd. (“AGL”), a Bermuda-based
holding company whose shares are publicly traded and are listed on the New York Stock Exchange under the symbol “AGO.”
AGL, through its operating subsidiaries, provides credit enhancement products to the U.S. and global public finance, structured
finance and mortgage markets. Neither AGL nor any of its shareholders is obligated to pay any debts of AGC or any claims under
any insurance policy issued by AGC.
AGC’s financial strength is rated “AAA” (negative outlook) by Standard & Poor’s, a division of The McGraw-Hill
Companies, Inc. (“S&P”), “Aa3” (under review for possible downgrade) by Moody’s Investors Service, Inc. (“Moody’s”) and
“AA-” (negative outlook) by Fitch, Inc. (“Fitch”). Each rating of AGC should be evaluated independently. An explanation of the
significance of the above ratings may be obtained from the applicable rating agency. The above ratings are not recommendations to
buy, sell or hold any security, and such ratings are subject to revision or withdrawal at any time by the rating agencies. Any
downward revision or withdrawal of any of the above ratings may have an adverse effect on the market price of any security
guaranteed by AGC. AGC does not guaranty the market price of the securities it guarantees, nor does it guaranty that the ratings
on such securities will not be revised or withdrawn.
Recent Developments
Ratings
In a press release dated November 12, 2009, Moody’s announced that it had downgraded the insurance financial strength
rating of AGC to “Aa3” from “Aa2” and that the status of AGC’s insurance financial strength rating would remain under review
for possible downgrade. Reference is made to the press release, a copy of which is available at www.moodys.com, for the
complete text of Moody’s comments.
In a press release dated October 12, 2009, Fitch announced that it had downgraded the insurer financial strength rating of
AGC to “AA-“ (negative outlook) from “AA” (ratings watch negative). Reference is made to the press release, a copy of which is
available at www.fitchratings.com, for the complete text of Fitch’s comments.
On July 1, 2009, S&P published a Research Update in which it affirmed its “AAA” counterparty credit and financial
strength ratings on AGC. At the same time, S&P revised its outlook on AGC to negative from stable. Reference is made to the
Research Update, a copy of which is available at www.standardandpoors.com, for the complete text of S&P’s comments.
There can be no assurance as to the outcome of Moody’s review, or as to the further action that Fitch or S&P may take
with respect to AGC.
For more information regarding AGC’s financial strength ratings and the risks relating thereto, see AGL’s Annual Report
on Form 10-K for the fiscal year ended December 31, 2008, which was filed by AGL with the Securities and Exchange
Commission (“SEC”) on February 26, 2009, AGL’s Quarterly Report on Form 10-Q for the quarterly period ended March 31,
2009, which was filed by AGL with the SEC on May 11, 2009, AGL’s Quarterly Report on Form 10-Q for the quarterly period
ended June 30, 2009, which was filed by AGL with the SEC on August 10, 2009, and AGL’s Quarterly Report on Form 10-Q for
the quarterly period ended September 30, 2009, which was filed by AGL with the SEC on November 16, 2009.
C-1
Capitalization of AGC Corp.
As of September 30, 2009, AGC had total admitted assets of $2,096,784,037 (unaudited), total liabilities of
$1,917,777,236 (unaudited), total surplus of $179,006,801 (unaudited) and total statutory capital (surplus plus contingency
reserves) of $951,037,548 (unaudited) determined in accordance with statutory accounting practices prescribed or permitted by
insurance regulatory authorities.
Incorporation of Certain Documents by Reference
The portions of the following documents relating to AGC are hereby incorporated by reference into this Final Official
Statement and shall be deemed to be a part hereof:

the Annual Report on Form 10-K of AGL for the fiscal year ended December 31, 2008 (which was filed by AGL
with the SEC on February 26, 2009);

the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009 (which was filed by AGL with
the SEC on May 11, 2009);

the Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009 (which was filed by AGL with
the SEC on August 10, 2009);

the Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2009 (which was filed by AGL
with the SEC on November 16, 2009); and

the Current Reports on Form 8-K filed by AGL with the SEC relating to the periods following the fiscal year
ended December 31, 2008.
All consolidated financial statements of AGC and all other information relating to AGC included in documents filed by
AGL with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as amended, subsequent to
the date of this Final Official Statement and prior to the termination of the offering of the Bonds shall be deemed to be incorporated
by reference into this Final Official Statement and to be a part hereof from the respective dates of filing such consolidated financial
statements.
Any statement contained in a document incorporated herein by reference or contained herein under the heading
“APPENDIX C - BOND INSURANCE AND SPECIMEN BOND INSURANCE POLICY – The Insurer” shall be modified or
superseded for purposes of this Final Official Statement to the extent that a statement contained herein or in any subsequently filed
document which is incorporated by reference herein also modifies or supersedes such statement. Any statement so modified or
superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Final Official Statement.
Copies of the consolidated financial statements of AGC incorporated by reference herein and of the statutory financial
statements filed by AGC with the Maryland Insurance Administration are available upon request by contacting AGC at 31 West
52nd Street, New York, New York 10019 or by calling AGC at (212) 974-0100. In addition, the information regarding AGC that is
incorporated by reference in this Final Official Statement that has been filed by AGL with the SEC is available to the public over
the Internet at the SEC’s web site at http://www.sec.gov and at AGL’s web site at http://www.assuredguaranty.com, from the
SEC’s Public Reference Room at 450 Fifth Street, N.W., Room 1024, Washington, D.C. 20549, and at the office of the New York
Stock Exchange at 20 Broad Street, New York, New York 10005.
AGC makes no representation regarding the Bonds or the advisability of investing in the Bonds. In addition, AGC has not
independently verified, makes no representation regarding, and does not accept any responsibility for the accuracy or completeness
of this Final Official Statement or any information or disclosure contained herein, or omitted herefrom, other than with respect to
the accuracy of the information regarding AGC supplied by AGC and presented under the heading “APPENDIX C - BOND
INSURANCE AND SPECIMEN BOND INSURANCE POLICY.”
C-2
Financial Guaranty Insurance Policy
Issuer:
Policy No.:
Obligations:
Premium:
Effective Date:
Assured Guaranty Corp., a Maryland corporation (“AGC”), in consideration of the payment of the Premium and on the
terms and subject to the conditions of this Policy (which includes each endorsement hereto), hereby unconditionally and irrevocably
agrees to pay to the trustee (the “Trustee”) or the paying agent (the “Paying Agent”) for the Obligations (as set forth in the
documentation providing for the issuance of and securing the Obligations) for the benefit of the Holders, that portion of the Insured
Payments which shall become Due for Payment but shall be unpaid by reason of Nonpayment.
AGC will make such Insured Payments to the Trustee or the Paying Agent on the later to occur of (i) the date applicable
principal or interest becomes Due for Payment, or (ii) the Business Day next following the day on which AGC shall have Received a
completed Notice of Nonpayment. If a Notice of Nonpayment by AGC is incomplete or does not in any instance conform to the
terms and conditions of this Policy, it shall be deemed not Received, and AGC shall promptly give notice to the Trustee or the
Paying Agent. Upon receipt of such notice, the Trustee or the Paying Agent may submit an amended Notice of Nonpayment. The
Trustee or the Paying Agent will disburse the Insured Payments to the Holders only upon receipt by the Trustee or the Paying Agent,
in form reasonably satisfactory to it of (i) evidence of the Holder's right to receive such payments, and (ii) evidence, including without
limitation any appropriate instruments of assignment, that all of the Holder's rights to payment of such principal or interest Due for
Payment shall thereupon vest in AGC. Upon and to the extent of such disbursement, AGC shall become the Holder of the
Obligations, any appurtenant coupon thereto and right to receipt of payment of principal thereof or interest thereon, and shall be fully
subrogated to all of the Holder's right, title and interest thereunder, including without limitation the right to receive payments in
respect of the Obligations. Payment by AGC to the Trustee or the Paying Agent for the benefit of the Holders shall discharge the
obligation of AGC under this Policy to the extent of such payment.
This Policy is non-cancelable by AGC for any reason. The Premium on this Policy is not refundable for any reason. This
Policy does not insure against loss of any prepayment premium or other acceleration payment which at any time may become due in
respect of any Obligation, other than at the sole option of AGC, nor against any risk other than Nonpayment.
Except to the extent expressly modified by any endorsement hereto, the following terms shall have the meanings specified
for all purposes of this Policy. “Avoided Payment” means any amount previously distributed to a Holder in respect of any Insured
Payment by or on behalf of the Issuer, which amount has been recovered from such Holder pursuant to the United States
Bankruptcy Code in accordance with a final, nonappealable order of a court having competent jurisdiction that such payment
constitutes an avoidable preference with respect to such Holder. “Business Day” means any day other than (i) a Saturday or
Sunday, (ii) any day on which the offices of the Trustee, the Paying Agent or AGC are closed, or (iii) any day on which banking
institutions are authorized or required by law, executive order or governmental decree to be closed in the City of New York or in the
State of Maryland. “Due for Payment” means (i) when referring to the principal of an Obligation, the stated maturity date thereof, or
the date on which such Obligation 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 a call for redemption (other than by mandatory sinking fund redemption),
acceleration or other advancement of maturity (unless AGC in its sole discretion elects to make any principal payment, in whole or in
part, on such earlier date) and (ii) when referring to interest on an Obligation, the stated date for payment of such interest. “Holder”
means, in respect of any Obligation, the person or entity who, at the time of Nonpayment, is entitled under the terms of such
Obligation to payment of principal or interest thereunder, except that Holder shall not include the Issuer or any person or entity
whose direct or indirect obligation constitutes the underlying security for the Obligations. “Insured Payments” means that portion of
the principal of and interest on the Obligations that shall become Due for Payment but shall be unpaid by reason of Nonpayment.
Insured Payments shall not include any additional amounts owing by the Issuer solely as a result of the failure by the Trustee or the
Paying Agent to pay such amount when due and payable, including without limitation any such additional amounts as may be
attributable to penalties or to interest accruing at a default rate, to amounts payable in respect of indemnification, or to any other
additional amounts payable by the Trustee or the Paying Agent by reason of such failure. “Nonpayment” means, in respect of an
Obligation, the failure of the Issuer to have provided sufficient funds to the Trustee or the Paying Agent for payment in full of all
principal and interest Due for Payment on such Obligation. It is further understood that the term "Nonpayment" in respect of an
Obligation includes any Avoided Payment. “Receipt” or “Received” means actual receipt or notice of or, if notice is given by
overnight or other delivery service, or by certified or registered United States mail, by a delivery receipt signed by a person
authorized to accept delivery on behalf of the person to whom the notice was given. Notices to AGC may be mailed by registered
mail or personally delivered or telecopied to it at 31 West 52nd Street, New York, New York 10019, Telephone Number: (212) 9740100, Facsimile Number: (212) 581-3268, Attention: Risk Management Department – Public Finance Surveillance, with a copy to the
General Counsel at the same address and at [email protected] or at the following Facsimile Number: (212)
445-8705, or to such other address as shall be specified by AGC to the Trustee or the Paying Agent in writing. A Notice of
Nonpayment will be deemed to be Received by AGC on a given Business Day if it is Received prior to 12:00 noon (New York City
Page 1 of 2
Form NY-FG (05/07)
C-3
time) on such Business Day; otherwise it will be deemed Received on the next Business Day. “Term” means the period from and
including the Effective Date until the earlier of (i) the maturity date for the Obligations, or (ii) the date on which the Issuer has made
all payments required to be made on the Obligations.
At any time during the Term of this Policy, AGC may appoint a fiscal agent (the “Fiscal Agent”) for purposes of this Policy
by written notice to the Trustee or the Paying Agent, specifying the name and notice address of such Fiscal Agent. From and after
the date of Receipt of such notice by the Trustee or the Paying Agent, copies of all notices and documents required to be delivered
to AGC pursuant to this Policy shall be delivered simultaneously to the Fiscal Agent and to AGC. All payments required to be made
by AGC under this Policy may be made directly by AGC or by the Fiscal Agent on behalf of AGC. The Fiscal Agent is the agent of
AGC only, and the Fiscal Agent shall in no event be liable to the Trustee or the Paying Agent for any acts of the Fiscal Agent or any
failure of AGC to deposit, or cause to be deposited, sufficient funds to make payments due under this Policy.
To the fullest extent permitted by applicable law, AGC hereby waives, in each case for the benefit of the Holders only, all
rights and defenses of any kind (including, without limitation, the defense of fraud in the inducement or in fact or any other
circumstance that would have the effect of discharging a surety, guarantor or any other person in law or in equity) that may be
available to AGC to deny or avoid payment of its obligations under this Policy in accordance with the express provisions hereof.
Nothing in this paragraph will be construed (i) to waive, limit or otherwise impair, and AGC expressly reserves, AGC’s rights and
remedies, including, without limitation: its right to assert any claim or to pursue recoveries (based on contractual rights, securities
law violations, fraud or other causes of action) against any person or entity, in each case, whether directly or acquired as a
subrogee, assignee or otherwise, subsequent to making any payment to the Trustee or the Paying Agent, in accordance with the
express provisions hereof, and/or (ii) to require payment by AGC of any amounts that have been previously paid or that are not
otherwise due in accordance with the express provisions of this Policy.
This Policy (which includes each endorsement hereto) sets forth in full the undertaking of AGC with respect to the subject
matter hereof, and may not be modified, altered or affected by any other agreement or instrument, including, without limitation, any
modification thereto or amendment thereof. THIS POLICY IS NOT COVERED BY THE PROPERTY/CASUALTY INSURANCE
SECURITY FUND SPECIFIED IN ARTICLE 76 OF THE NEW YORK INSURANCE LAW. This Policy will be governed by, and shall
be construed in accordance with, the laws of the State of New York.
IN WITNESS WHEREOF, AGC has caused this Policy to be affixed with its corporate seal, to be signed by its duly
authorized officer, and to become effective and binding upon AGC by virtue of such signature.
ASSURED GUARANTY CORP.
(SEAL)
By:__________________________________
[Insert Authorized Signatory Name]
[Insert Authorized Signatory Title]
Signature attested to by:
_______________________________
Counsel
Page 2 of 2
Form NY-FG (05/07)
C-4
APPENDIX D
PROPOSED FORM OF OPINION OF BOND COUNSEL
[LETTERHEAD OF CHAPMAN AND CUTLER LLP]
[TO BE DATED CLOSING DATE]
We hereby certify that we have examined certified copy of the proceedings of the Board of
Commissioners of the Public Building Commission of Peoria, Peoria County, Illinois (the “Commission”),
passed preliminary to the issue by the District of its fully registered Taxable School District Facilities Revenue
Bonds, Series 2009C (Lincoln Middle and Peoria High Schools Project) (the “Bonds”), to the amount of
$30,200,000, dated December 29, 2009, due serially on December 1 of the years and in the amounts and bearing
interest as follows:
2024
2025
2026
2027
2028
2029
$ 2,200,000
2,000,000
2,800,000
3,700,000
4,500,000
15,000,000
6.04%
6.14%
6.24%
6.34%
6.53%
6.58%
the Bonds being subject to redemption prior to maturity at the option of the District as a whole or in part in any
order of their maturity as determined by the District (less than all of the Bonds of a single maturity to be
selected by the Bond Registrar), on December 1, 2019, or on any date thereafter, at the redemption price of par
plus accrued interest to the redemption date, as provided in such proceedings, and we are of the opinion that
such proceedings show lawful authority for said issue under the laws of the State of Illinois now in force.
We further certify that we have examined the form of bond prescribed for said issue and find the same in
due form of law, and in our opinion the Bonds, to the amount named, are valid and legally binding special
obligations of the Commission, and are payable solely from the net revenues derived from the operation,
management or use of the school district facilities of the Commission set forth and described in such
proceedings, and which revenues shall include payments received under any leases or other contracts for the use
thereof, or space therein, including all revenues from lease agreements (collectively, the “Lease”) duly
authorized and entered into by the Commission with the Board of Education of the City of Peoria, School
District Number 150, Peoria County, Illinois (the “District”), except that the rights of the owners of the Bonds
and the enforceability of the Bonds may be limited by bankruptcy, insolvency, moratorium, reorganization and
other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in equity,
including the exercise of judicial discretion. The Board of Education of the District has adopted a resolution
providing for the levy and collection of a direct annual tax upon all taxable property in the District sufficient to
pay the annual rentals due under the Lease. In our opinion all taxable property in the District is subject to the
levy of taxes to pay the same without limitation as to rate or amount, except that the rights of the Commission
and the enforceability of the Lease may be limited by bankruptcy, insolvency, moratorium, reorganization and
other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in equity,
including the exercise of judicial discretion. The Bonds are issued on a parity with the Commission’s
outstanding School District Facilities Capital Appreciation Revenue Bonds, Series 2008A (Richwoods Project)
(the “2008A Bonds”), School District Facilities Capital Appreciation Revenue Bonds, Series 2009A (Glen Oak
Project) (the “2009A Bonds”), and School District Facilities Capital Appreciation Revenue Bonds,
Series 2009B (Harrison Project) (the “2009B Bonds”), to the extent the 2008A Bonds, the 2009A Bonds, the
2009B Bonds and the Bonds are payable from certain of the annual rentals due under the Lease. As additional
security for the payment of the Bonds, the Commission has pledged the Build America Payments (as defined in
the resolution authorizing the issuance of the Bonds) to the payment of the principal of and interest on the
Bonds.
D-1
It is our opinion that under present law, interest on the Bonds is not excludable from gross income of the
owners thereof for federal income tax purposes. Ownership of the Bonds may result in other federal income tax
consequences to certain taxpayers. Bondholders should consult their own tax advisors concerning tax
consequences of ownership of the Bonds.
We express no opinion herein as to the accuracy, adequacy or completeness of any information
furnished to any person in connection with any offer or sale of the Bonds.
In rendering this opinion, we have relied upon certifications of the District with respect to certain
material facts within the District’s knowledge. Our opinion represents our legal judgment based upon our
review of the law and the facts that we deem relevant to render such opinion and is not a guarantee of a result.
This opinion is given as of the date hereof and we assume no obligation to revise or supplement this opinion to
reflect any facts or circumstances that may hereafter come to our attention or any changes in law that may
hereafter occur.
D-2

public building commission of peoria

Transcription

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