Sd159 Bonds

NEW ISSUE Rating:
BOOK-ENTRY ONLY Moody’s: “Aa3”

TAXABLE See “BOND RATING” herein
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 TREATMENT” herein for a more complete
discussion.
School District Number 159
Cook County, Illinois
$19,865,000 Taxable General Obligation Refunding School Bonds, Series 2020
Dated: Date of Delivery Due: December 1, as further described on the inside cover page
The Taxable General Obligation Refunding School Bonds, Series 2020 (the “Bonds”), of School District Number
159, Cook County, Illinois (the “District”), will be issued in fully registered form and will be registered initially only in the
name of Cede & Co., as registered owner and nominee of The Depository Trust Company, New York, New York (“DTC”).
DTC will act as securities depository for the Bonds. Purchasers of the Bonds will not receive certificates representing their
interests in the Bonds purchased. Ownership by the beneficial owners of the Bonds will be evidenced by book-entry only.
Payments of principal of and interest on the Bonds will be made by Amalgamated Bank of Chicago, Chicago, Illinois, as bond
registrar and paying agent, to DTC, which in turn will remit such payments to its participants for subsequent disbursement to
the beneficial owners of the Bonds. As long as Cede & Co. is the registered owner as nominee of DTC, payments of principal
of and interest on the Bonds will be made to such registered owner, and disbursement of such payments will be the responsibility
of DTC and its participants. Individual purchases of the Bonds will be made in the principal amount of $5,000 or any integral
multiple thereof.
The Bonds will bear interest from their dated date at the rates per annum as shown on the inside cover page. Interest
on the Bonds (computed on the basis of a 360-day year consisting of twelve 30-day months) will be payable semi-annually on
each June 1 and December 1, commencing June 1, 2020.
Proceeds of the Bonds will be used to (a) refund certain of the District’s outstanding bonds and (b) pay costs associated
with the issuance of the Bonds.
The Bonds due on or after December 1, 2031 are subject to redemption prior to maturity at the option of the District,
as a whole or in part, on any date on or after December 1, 2030, at the redemption price of par plus accrued interest to the
redemption date. See “THE BONDS—Redemption” herein.
In the opinion of Chapman and Cutler LLP, Chicago, Illinois (“Bond Counsel”), the Bonds are valid and legally
binding upon the District and are payable from any funds of the District legally available for such purpose, and all taxable
property in the District is subject to the levy of taxes to pay the same without limitation as to rate or amount, except that the
rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, moratorium,
reorganization and other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in
equity, including the exercise of judicial discretion. See “THE BONDS—Security” herein.
The District’s audited financial statements for the fiscal year ended June 30, 2019 (the “2019 Audit”) became
available and were presented to the Board of Education on February 5, 2020. The 2019 Audit is attached as Appendix
A to this Official Statement in place of the District’s audited financial statements for fiscal year ended June 30, 2018.
No changes were made to the audited financial information referenced or displayed in the body of the Official Statement.
The Bonds are offered when, as and if issued by the District and received by Oppenheimer & Co. Inc., Chicago,
Illinois (the “Underwriter”), subject to prior sale, to withdrawal or modification of the offer without notice, and to the approval
of legality by Chapman and Cutler LLP, Chicago, Illinois, Bond Counsel, and certain other conditions. Chapman and Cutler
LLP, Chicago, Illinois, will also act as Disclosure Counsel to the District. Burke Burns & Pinelli, Ltd., Chicago, Illinois, will
pass on certain matters for the Underwriter. It is expected that beneficial interests in the Bonds will be available for delivery
through the facilities of DTC on or about March 4, 2020.
Oppenheimer & Co.

The date of this Official Statement is February 5, 2020.
$19,865,000 TAXABLE GENERAL OBLIGATION REFUNDING SCHOOL BONDS, SERIES 2020
MATURITIES, AMOUNTS, INTEREST RATES, YIELDS AND CUSIP NUMBERS
CUSIP
MATURITY INTEREST NUMBER*
(DECEMBER 1) AMOUNT RATE YIELD (215260)
2028 $1,420,000 2.387% 2.387% MH0

2029 1,450,000 2.487% 2.487% MJ6
2030 1,490,000 2.637% 2.637% MK3
2031 1,525,000 2.737% 2.737% ML1
2032 1,570,000 2.837% 2.837% MM9
2033 1,615,000 2.937% 2.937% MN7
2034 1,660,000 3.037% 3.037% MP2
2035 1,710,000 3.087% 3.087% MQ0
$7,425,000 3.372% Term Bond, due December 1, 2039; Yield 3.372%; CUSIP* 215260 MR8
* CUSIP data herein is provided by the CUSIP Global Services, managed on behalf of the American Bankers Association by S&P Capital IQ,
a part of McGraw-Hill Companies Financial. No representations are made as to the correctness of the CUSIP numbers. These CUSIP numbers
are subject to change after the issuance of the Bonds.
No dealer, broker, salesman or other person has been authorized by the District or the Underwriter to give
any information or to make any representations other than those contained in this Official Statement in connection
with the offering described herein and if given or made, such other information or representations must not be relied
upon as statements having been authorized by the District, the Underwriter or any other entity. This Official Statement
does not constitute an offer to sell or the solicitation of an offer to buy any securities other than the Bonds, nor shall
there be any offer to sell or solicitation of an offer to buy the Bonds by any person in any jurisdiction in which it is
unlawful for such person to make such offer, solicitation or sale. This Official Statement is submitted in connection
with the sale of the securities described in it and may not be reproduced or used, in whole or in part, for any other
purposes.
Unless otherwise indicated, the District is the source of all tables and statistical and financial information
contained in this Official Statement. The information contained in this Official Statement concerning DTC has been
obtained from DTC. The other information set forth herein has been furnished by the District or from other sources
believed to be reliable. The information and opinions expressed herein are subject to change without notice, and
neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any
implication that there has been no change in the affairs of the District since the date of this Official Statement.
This Official Statement should be considered in its entirety and no one factor considered more or less
important than any other by reason of its position in this 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 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 Official Statement contains certain
forward-looking statements and information that are based on the District’s beliefs as well as assumptions made by
and information currently available to 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 Underwriter has reviewed the information in this Official Statement in accordance with, and as part of,
its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this
transaction, but the Underwriter does not guarantee the accuracy or completeness of such information.
IN CONNECTION WITH THE OFFERING, THE UNDERWRITER 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 OFFICIAL
STATEMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
TABLE OF CONTENTS
PAGE
INTRODUCTION .................................................................................................................................2
THE BONDS .......................................................................................................................................2
Authority and Purpose ............................................................................................................2
General Description ................................................................................................................2
Registration and Transfer ........................................................................................................3
Redemption .............................................................................................................................3
Security ...................................................................................................................................5
PLAN OF FINANCE .............................................................................................................................5
Verification .............................................................................................................................6
SOURCES AND USES ..........................................................................................................................7
RISK FACTORS ..................................................................................................................................7
Finances of the State of Illinois ..............................................................................................7
Local Economy .......................................................................................................................8
Concentration of Taxpayers ....................................................................................................8
Low Tax Collections; Potential Delay and Limitations of Tax Sales; Remedies ...................9
High Unemployment...............................................................................................................9
Loss or Change of Bond Rating ..............................................................................................9
Secondary Market for the Bonds ..........................................................................................10
Continuing Disclosure ..........................................................................................................10
Suitability of Investment .......................................................................................................10
Future Changes in Laws........................................................................................................10
Cybersecurity ........................................................................................................................10
Bankruptcy ............................................................................................................................11
THE DISTRICT .................................................................................................................................11
General Description ..............................................................................................................11
District Administration .........................................................................................................12
Board of Education ...............................................................................................................12
Enrollment.............................................................................................................................12
Employee Union Membership and Relations .......................................................................13
Population Data.....................................................................................................................13
Educational Characteristics of Persons 25 Years and Older .................................................13
FINANCIAL INFORMATION AND ECONOMIC CHARACTERISTICS OF THE DISTRICT ...........................14
Direct General Obligation Bonds (Principal Only) ..............................................................14
Overlapping General Obligation Bonds................................................................................15
Selected Financial Information .............................................................................................16
Composition of EAV ............................................................................................................16
Tax Increment Financing Districts Located within the District............................................17
Trend of EAV .......................................................................................................................18
Taxes Extended and Collected ..............................................................................................18
District Tax Rates by Purpose 2014-2018 ............................................................................19
Representative Total Tax Rates 2014-2018 ..........................................................................19
Ten Largest Taxpayers ..........................................................................................................20
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Retailers’ Occupation, Service Occupation and Use Tax .....................................................20
New Property ........................................................................................................................21
Largest Employers ................................................................................................................22
Unemployment Rates ............................................................................................................23
Specified Owner-Occupied Units .........................................................................................23
Employment by Industry.......................................................................................................24
Employment by Occupation .................................................................................................25
Median Household Income ...................................................................................................26
Per Capita Income .................................................................................................................27
SHORT-TERM BORROWING .............................................................................................................27
FUTURE DEBT .................................................................................................................................27
DEFAULT RECORD ..........................................................................................................................27
WORKING CASH FUND ....................................................................................................................27
Working Cash Fund Summary..............................................................................................28
REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES ..................................28
Summary of Property Assessment, Tax Levy and Collection Procedures ...........................28
Real Property Assessment.....................................................................................................28
Equalization ..........................................................................................................................31
Exemptions ...........................................................................................................................32
Tax Levy ...............................................................................................................................34
Property Tax Extension Limitation Law...............................................................................34
Extensions .............................................................................................................................35
Collections ............................................................................................................................35
Truth in Taxation Law ..........................................................................................................37
SCHOOL DISTRICT FINANCIAL PROFILE ..........................................................................................37
STATE AID ......................................................................................................................................39
General ..................................................................................................................................39
General State Aid—Evidence–Based Funding Model .........................................................39
Property Tax Relief Pool Funds............................................................................................40
Mandated Categorical State Aid ...........................................................................................41
Competitive Grant State Aid .................................................................................................42
Payment for Mandated Categorical State Aid and Competitive Grant State Aid .................42
RETIREMENT PLANS........................................................................................................................43
Background Regarding Pension Plans ..................................................................................43
Teachers’ Retirement System of the State of Illinois ...........................................................44
Illinois Municipal Retirement Fund ......................................................................................46
TEACHER HEALTH INSURANCE SECURITY FUND.............................................................................47
BOND RATINGS ...............................................................................................................................48
TAX TREATMENT ............................................................................................................................48
CONTINUING DISCLOSURE ..............................................................................................................48
AUDITED FINANCIAL STATEMENTS .................................................................................................49
BOOK-ENTRY ONLY SYSTEM..........................................................................................................49
CERTAIN LEGAL MATTERS .............................................................................................................52
NO LITIGATION ...............................................................................................................................52
UNDERWRITING ..............................................................................................................................52
AUTHORIZATION .............................................................................................................................53
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EXHIBITS
Exhibit A — Combined Statement of Revenues, Expenditures and Changes in Fund
Balance, Fiscal Years Ended 2015-2019
Exhibit B — Budget, Fiscal Year Ending June 30, 2020
Exhibit C — General Fund Revenue Sources, Fiscal Years Ended June 30, 2015-2019
APPENDICES
Appendix A — Audited Financial Statements of the District for the
Fiscal Year Ended June 30, 2019
Appendix B — Proposed Form of Opinion of Bond Counsel
Appendix C — Proposed Form of Continuing Disclosure Undertaking
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SCHOOL DISTRICT NUMBER 159
COOK COUNTY, ILLINOIS
6202 Vollmer Road

Matteson, Illinois 60443
Board of Education
Dr. William McClinton

President
Regina Edgecombe Carolyn Palmer Sharee Morton

Vice President
Debra Ellis Bernice Brown Carolyn Owens

Secretary
Administration
Dr. Mable Alfred

Superintendent
Dr. Demetria Brown

Chief School Business Official
Professional Services
Underwriter
Oppenheimer & Co. Inc.
Chicago, Illinois
Underwriter’s Counsel
Burke Burns & Penelli, Ltd.
Chicago, Illinois
Bond Counsel and Disclosure Counsel

Chapman and Cutler LLP
Chicago, Illinois
Bond Registrar, Paying Agent and Escrow Agent

Amalgamated Bank of Chicago
Chicago, Illinois
Auditor
Mueller & Co., LLP
Orland Park, Illinois
OFFICIAL STATEMENT

$19,865,000 Taxable General Obligation Refunding School Bonds, Series 2020
INTRODUCTION
The purpose of this Official Statement is to set forth certain information concerning School
District Number 159, Cook County, Illinois (the “District”), in connection with the offering and
sale of its Taxable General Obligation Refunding School Bonds, Series 2020 (the “Bonds”).
This Official Statement contains “forward-looking statements” that are based upon the
District’s current expectations and its projections about future events. When used in this Official
Statement, the words “project,” “estimate,” “intend,” “expect,” “scheduled,” “pro-forma” and
similar words identify forward-looking statements. Forward-looking statements are subject to
known and unknown risks, uncertainties and factors that are outside of the control of the District.
Actual results could differ materially from those contemplated by the forward-looking statements.
Readers are cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. Neither the District nor any other party plans to issue any updates
or revisions to these forward-looking statements based on future events.
THE BONDS
AUTHORITY AND PURPOSE
The Bonds are being issued pursuant to the School Code of the State of Illinois (the “School
Code”), the Local Government Debt Reform Act of the State of Illinois (the “Debt Reform Act”),
and all laws amendatory thereof and supplementary thereto, and a bond resolution adopted by the
Board of Education of the District (the “Board”) on the 11th day of December, 2019 as
supplemented by a notification of sale (together, the “Bond Resolution”).
Proceeds of the Bonds will be used to (a) refund certain of the District’s outstanding
General Obligation School Bonds, Series 2007, dated July 24, 2007 ( the “Series 2007 Bonds”
and, those Series 2007 Bonds being refunded, the “Refunded Bonds”), and (b) pay costs associated
with the issuance of the Bonds. See “PLAN OF FINANCE” herein.
GENERAL DESCRIPTION
The Bonds will be dated the date of issuance thereof, will be in fully registered form,
without coupons, and will be in denominations of $5,000 or any integral multiple thereof under a
book-entry only system operated by The Depository Trust Company, New York, New York
(“DTC”). Principal of and interest on the Bonds will be payable by Amalgamated Bank of
Chicago, Chicago, Illinois (the “Registrar”).
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The Bonds will mature as shown on the inside cover page hereof. Interest on the Bonds
will be payable each June 1 and December 1, beginning June 1, 2020.
The Bonds will bear interest from their dated date, or from the most recent interest payment
date to which interest has been paid or provided for, computed on the basis of a 360-day year
consisting of twelve 30-day months. The principal of the Bonds will be payable in lawful money
of the United States of America upon presentation and surrender thereof at the principal corporate
trust office of the Registrar. Interest on each Bond will be paid by check or draft of the Registrar
payable upon presentation in lawful money of the United States of America to the person in whose
name such Bond is registered at the close of business on the 15th day of the month next preceding
the interest payment date.
REGISTRATION AND TRANSFER
The Registrar will maintain books (the “Register”) for the registration of ownership and
transfer of the Bonds. Subject to the provisions of the Bonds as they relate to book-entry form,
any Bond may be transferred upon the surrender thereof at the principal corporate trust office of
the Registrar, together with an assignment duly executed by the registered owner or his or her
attorney in such form as will be satisfactory to the Registrar. No service charge shall be made for
any transfer or exchange of Bonds, but the District or the 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 Registrar shall not be required to transfer or exchange any Bond during the period
beginning at the close of business on the 15th day of the month next preceding any interest
payment date on such Bond and ending at the opening of business on such interest payment date,
nor to transfer or exchange any Bond after notice calling such Bond for redemption has been
mailed, nor during a period of fifteen (15) days next preceding mailing of a notice of redemption
of any Bonds.
REDEMPTION
Optional Redemption. The Bonds due on or after December 1, 2031 are subject to
redemption prior to maturity at the option of the District as a whole or in part in integral multiples
of $5,000 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 Registrar), on December 1, 2030, and on any date thereafter,
at the redemption price of par plus accrued interest to the redemption date.
Mandatory Sinking Fund Redemption. The Bonds due on December 1, 2039 are subject to
mandatory redemption, in integral multiples of $5,000 selected by lot by the Registrar, at a
redemption price of par plus accrued interest to the redemption date, on December 1 of the years
and in the principal amounts as follows:
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FOR THE BONDS DUE DECEMBER 1, 2039
YEAR PRINCIPAL AMOUNT
2036 $1,765,000
2037 1,825,000
2038 1,885,000
2039 1,950,000(stated maturity)
The principal amounts of Bonds to be mandatorily redeemed in each year may be reduced
through the earlier optional redemption thereof, with any partial optional redemptions of such
Bonds credited against future mandatory redemption requirements in such order of the mandatory
redemption dates as the District may determine. In addition, on or prior to the 60th day preceding
any mandatory redemption date, the Registrar may, and if directed by the District shall, purchase
Bonds required to be retired on such mandatory redemption date. Any such Bonds so purchased
shall be cancelled and the principal amount thereof shall be credited against the mandatory
redemption required on such next mandatory redemption date.
General. The District will, at least 45 days prior to any optional redemption date (unless a
shorter time period shall be satisfactory to the Registrar), notify the Registrar of such redemption
date and of the principal amount and maturity or maturities of Bonds to be redeemed. For purposes
of any redemption of less than all of the outstanding Bonds of a single maturity, the particular
Bonds or portions of Bonds to be redeemed shall be selected by lot by the Registrar from the Bonds
of such maturity by such method of lottery as the Registrar shall deem fair and appropriate (except
when the Bonds are held in a book-entry system, in which case the selection of Bonds to be
redeemed will be made in accordance with procedures established by DTC or any other book-entry
depository); provided that such lottery shall provide for the selection for redemption of Bonds or
portions thereof in principal amounts of $5,000 and integral multiples thereof.
Unless waived by any holder of Bonds to be redeemed, notice of the call for any redemption
will be given by the Registrar on behalf of the District by mailing the redemption notice by
first-class mail at least 30 days and not more than 60 days prior to the date fixed for redemption to
each registered owner of the Bonds to be redeemed at the address shown on the Register or at such
other address as is furnished in writing by such registered owner to the Registrar.
Unless moneys sufficient to pay the redemption price of the Bonds to be redeemed at the
option of the District are received by the Registrar prior to the giving of such notice of redemption,
such notice may, at the option of the District, state that said redemption will be conditional upon
the receipt of such moneys by the Registrar on or prior to the date fixed for redemption. If such
moneys are not received, such notice will be of no force and effect, the District will not redeem
such Bonds, and the 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 District will deposit with the 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 that date.
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Subject to the provisions for a conditional redemption described above, notice of
redemption having been given as described above and in the Bond Resolution, and notwithstanding
failure to receive such notice, 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 District 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 Registrar at the redemption price.
SECURITY
The Bonds, in the opinion of Chapman and Cutler LLP, Chicago, Illinois, Bond Counsel
(“Bond Counsel”), are valid and legally binding upon the District and are payable from any funds
of the District legally available for such purpose, and all taxable property in the District is subject
to the levy of taxes to pay the same without limitation as to rate or amount, except that the rights
of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy,
insolvency, moratorium, reorganization and other similar laws affecting creditors’ rights and by
equitable principles, whether considered at law or in equity, including the exercise of judicial
discretion.
The Bond Resolution authorizing the issuance of the Bonds, provides for the levy of ad
valorem taxes, unlimited as to rate or amount, upon all taxable property within the District in
amounts sufficient to pay, as and when due, all principal of and interest on the Bonds. The Bond
Resolution will be filed with the County Clerk of Cook County, Illinois (the “County Clerk”), and
will serve as authorization to the County Clerk to extend and collect the property taxes as set forth
in the Bond Resolution to pay the Bonds.
Reference is made to Appendix B for the proposed form of opinion of Bond Counsel.
PLAN OF FINANCE
The Bonds are structured to mature serially from December 1, 2028 through December 1,
2039. The deferral of principal until December 1, 2028 will ensure compliance with certain federal
tax laws with respect to tax-exempt bonds, and will better match available District resources with
debt service coming due on the Bonds due to the scheduled expiration of both certain tax abatement
agreements with property owners and certain TIF districts (as defined herein).
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A portion of the proceeds of the Bonds will be used to refund the Refunded Bonds, further
described as follows:
SERIES 2007 BONDS
COMPOUND
COMPOUND ACCRETED
ACCRETED VALUE AT
VALUE AT MATURITY OF
ORIGINAL MATURITY PRINCIPAL PRINCIPAL
PRINCIPAL OF ORIGINAL AMOUNT AMOUNT OF
MATURITY AMOUNT PRINCIPAL REFUNDED BY REFUNDED
(DECEMBER 1) ISSUED AMOUNT THE BONDS BONDS CALL PRICE CALL DATE
2020 $1,528,654.50 $2,850,000 $1,528,654.50 $2,850,000 Non Callable Non Callable

2021 1,552,249.65 3,045,000 1,552,249.65 3,045,000 Non Callable Non Callable
TOTAL $11,638,632.65 $25,045,000 $9,608,266.45 $20,485,000
Certain proceeds received from the sale of the Bonds will be deposited in an Escrow
Account (the “Escrow Account”) to be held by Amalgamated Bank of Chicago, Chicago, Illinois
(the “Escrow Agent”), under the terms of an Escrow Agreement, dated as of the date of issuance
of the Bonds, between the District and the Escrow Agent. The moneys so deposited in the Escrow
Account will be applied by the Escrow Agent to purchase direct non-callable obligations of, or
obligations guaranteed by the full faith and credit of, the United States of America (the
“Government Securities”) and to provide an initial cash deposit. The Government Securities
together with interest earnings thereon and the beginning cash deposit will be sufficient to pay
when due the compound accreted value on the Refunded Bonds on the maturity dates thereof.
VERIFICATION
The accuracy of the mathematical computations regarding the sufficiency of the maturing
principal of and interest earnings on the Government Securities together with the initial cash
deposit in the Escrow Account to pay the debt service described above on the Refunded Bonds
will be verified by Dunbar, Breitweiser & Company, LLP, Bloomington, Illinois. Such
verification shall be based upon information supplied by Oppenheimer & Co. Inc., Chicago,
Illinois (the “Underwriter”).
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SOURCES AND USES
The sources and uses of funds resulting from the Bonds and the Available Funds are shown
below:
SOURCES: THE
BONDS
Principal Amount $19,865,000.00
Total Sources $19,865,000.00
USES:
Deposit to Escrow Account to pay the
Refunded Bonds $19,487,324.49
Costs of Issuance* 377,675.51
Total Uses $19,865,000.00

______________________________
* Includes underwriter’s discount and other issuance costs.
RISK FACTORS
The purchase of the Bonds involves certain investment risks. Accordingly, each
prospective purchaser of the Bonds should make an independent evaluation of the entirety of the
information presented in this Official Statement and its appendices and exhibits in order to make
an informed investment decision. Certain of the investment risks are described below. The
following statements, however, should not be considered a complete description of all risks to be
considered in the decision to purchase the Bonds, nor should the order of the presentation of such
risks be construed to reflect the relative importance of the various risks. There can be no assurance
that other risk factors are not material or will not become material in the future.
FINANCES OF THE STATE OF ILLINOIS
The State of Illinois (the “State”) continues to experience adverse fiscal conditions. The
severe underfunding of the State’s pension systems, which, based on the comprehensive annual
financial reports of the State’s five retirement systems, have a combined unfunded pension liability
in excess of $130 billion and a combined funded ratio less than 45%, and an ongoing bill backlog
of billions of dollars contribute to the State’s poor financial health. The State failed to enact a full
budget for the State fiscal years ending June 30, 2016, and June 30, 2017, which had a significant,
negative impact on the State’s finances, although certain spending occurred through statutory
transfers, statutory continuing appropriations, court orders and consent decrees, including
spending for elementary and secondary education.
The State enacted full budgets for the State fiscal year ending June 30, 2018 (the “Fiscal
Year 2018 Budget”), for the State fiscal year ending June 30, 2019 (the “Fiscal Year 2019
Budget”) and for the State fiscal year ending June 30, 2020 (the “Fiscal Year 2020 Budget”). The
-7-
Fiscal Year 2018 Budget contained appropriations for General State Aid (as hereinafter defined),
contingent upon General State Aid being allocated among school districts in accordance with an
“Evidence-Based Funding Model.” Public Act 100-0465, effective August 31, 2017 (“Public Act
100-465”), provides for an Evidence-Based Funding Model for allocating General State Aid to
school districts. See “STATE AID” herein for more information on the Evidence-Based Funding
Model. Both the Fiscal Year 2019 Budget and the Fiscal Year 2020 Budget also contained
appropriations for General State Aid and allocated the same among school districts in accordance
with the Evidence-Based Funding Model.
The Fiscal Year 2020 Budget was a $40 billion budget package, representing an increase
in State spending of $1 billion from the Fiscal Year 2019 Budget. The Fiscal Year 2020 Budget
increased General State Aid by $375 million over the Fiscal Year 2019 Budget. To cover the
increases in State spending, the General Assembly enacted, and the Governor approved, separate
legislation designed to increase State revenues (including the imposition of additional taxes and
fees and the expansion of revenue producing activities, including gaming).
State funding sources constituted 16.41% of the District’s General Fund revenue sources
for the fiscal year ended June 30, 2019. The District cannot predict the effect the State’s ongoing
financial problems may have on the District’s future finances.
LOCAL ECONOMY
The financial health of the District is in part dependent on the strength of the local
economy. Many factors affect the local economy, including rates of employment and economic
growth and the level of residential and commercial development. It is not possible to predict to
what extent any changes in economic conditions, demographic characteristics, population or
commercial and industrial activity will occur and what impact such changes would have on the
finances of the District.
CONCENTRATION OF TAXPAYERS
Based on the District’s 2018 EAV (which includes TIF values), the District’s ten largest
taxpayers own 21.18% of the total current EAV of taxable property in the District. If one or more
of these taxpayers were to relocate from the District or cease operations, would be unable to pay
its tax bills or was successful in challenging its assessed valuation, the timely receipt of tax dollars
by the District could be affected. The District has the authority to levy deficiency taxes if debt
service tax collections are inadequate. Notwithstanding, the value of the Bonds, the District’s
ability to repay the Bonds or the timing of repayment could be adversely affected.
Furthermore, if any of the largest taxpayers were to relocate or cease operations, the District
could experience a significant reduction in EAV.
-8-
LOW TAX COLLECTIONS; POTENTIAL DELAY AND LIMITATIONS OF TAX SALES; REMEDIES
Over the past 5 years, the District has collected approximately between 92% and 95% of
its taxes levied. Factors that may affect the rate of collection include, without limitation, amounts
added by the County Clerk to the targeted collections to take into account uncollectible taxes or
late payments by taxpayers (see paragraph immediately below), the general economic conditions
of the region, the administration of the assessment of real property within the County, and the
existences and administration of incentive abatement agreements between the District and
individual property taxpayers. Recent collection rates are set forth under the caption “FINANCIAL
INFORMATION AND ECONOMIC CHARACTERISTICS OF THE DISTRICT-TAXES EXTENDED AND
COLLECTED.”
While the District has the right to file a deficiency levy assessed against all the taxable
property in the District if tax collections ultimately remain low, the ability of the District to pay
principal and interest on the Bonds could be adversely affected by a low rate of collections. In
addition, delays in recovering delinquent taxes create risks for purchasers of the Bonds. Recovery
of taxes is subject to the procedures of Cook County, Illinois (the “County”) for providing notice
to record holders of the property of a pending tax sale. During any period of time in which property
offered for sale remains unsold or is later abandoned, delinquent taxes will likely continue to be
unpaid. A description of the remedies of the District in the event of nonpayment of taxes is
contained in the section entitled “REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION.”
In order to improve future collection percentages, the District has directed the County Clerk
to increase from 5% to 10% the allowance for uncollected taxes for its debt service levy. As a
result of such request, the County Clerk will extend for collection $1.10 for each $1.00 of debt
service. See “FINANCIAL INFORMATION AND ECONOMIC CHARACTERISTICS OF THE DISTRICT-Taxes
Extended and Collected.”
HIGH UNEMPLOYMENT
Unemployment rates are not specifically compiled for the District. However, the Village
of Matteson and the Village of Richton Park (collectively, the “Villages”), located within the
District, had unemployment rates of 5.2% and 5.1%, respectively, in 2018, which is higher than
the County rate of 4.0% and the State rate of 4.3%. Unemployed workers who reside within the
District may lack the financial resources to pay taxes owed to the District in a timely manner or at
all. The high number of unemployed workers residing within the District could increase the
likelihood that the District will not be able to collect the full amount of taxes levied, both to pay
the Bonds and to fund the District’s operations, which could adversely affect the District’s ability
to pay or the timing of payment of the Bonds.
LOSS OR CHANGE OF BOND RATING
The Bonds have received a credit rating from Moody’s Investors Service, New York, New
York (“Moody’s”). The rating can be changed or withdrawn at any time for reasons both under
and outside the District’s control. Any change, withdrawal or combination thereof could adversely
affect the ability of investors to sell the Bonds or may affect the price at which they can be sold.
-9-
SECONDARY MARKET FOR THE BONDS
No assurance can be given that a secondary market will develop for the purchase and sale
of the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price.
The Underwriter is not obligated to engage in secondary market trading or to repurchase any of
the Bonds at the request of the owners thereof.
Prices of the Bonds as traded in the secondary market are subject to adjustment upward
and downward in response to changes in the credit markets and other prevailing circumstances.
No guarantee exists as to the future market value of the Bonds. Such market value could be
substantially different from the original purchase price.
CONTINUING DISCLOSURE
A failure by the District to comply with the Undertaking for continuing disclosure (see
“CONTINUING DISCLOSURE” herein) will not constitute an event of default on the Bonds. Any such
failure must be reported in accordance with Rule 15c2-12 (the “Rule”) adopted by the Securities
and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), and may adversely affect the transferability and liquidity of the
Bonds and their market price.
SUITABILITY OF INVESTMENT
The interest rate borne by the Bonds is intended to compensate the investor for assuming
the risk of investing in the Bonds. Each prospective investor should carefully examine this Official
Statement and its own financial condition to make a judgment as to its ability to bear the economic
risk of such an investment, and whether or not the Bonds are an appropriate investment for such
investor.
FUTURE CHANGES IN LAWS
Various state and federal laws, regulations and constitutional provisions apply to the
District and to the Bonds. The District can give no assurance that there will not be a change in,
interpretation of, or addition to such applicable laws, provisions and regulations which would have
a material effect, either directly or indirectly, on the District, or the taxing authority of the District.
For example, many elements of local government finance, including the issuance of debt and the
levy of property taxes, are controlled by State government. Future actions of the State may affect
the overall financial conditions of the District, the taxable value of property within the District,
and the ability of the District to levy property taxes or collect revenues for its ongoing operations.
CYBERSECURITY
Computer networks and data transmission and collection are vital to the efficient operation
of the District. Despite the implementation of network security measures by the District, its
information technology and infrastructure may be vulnerable to deliberate attacks by hackers,
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malware, ransomware or computer virus, or may otherwise be breached due to employee error,
malfeasance or other disruptions. Any such breach could compromise networks and the
information stored thereon could be disrupted, accessed, publicly disclosed, lost or stolen.
Although the District does not believe that its information technology systems are at a materially
greater risk of cybersecurity attacks than other similarly-situated governmental entities, any such
disruption, access, disclosure or other loss of information could have an adverse effect on the
District’s operations and financial health. Further, as cybersecurity threats continue to evolve, the
District may be required to expend significant additional resources to continue to modify and
strengthen security measures, investigate and remediate any vulnerabilities, or invest in new
technology designed to mitigate security risks.
BANKRUPTCY
The rights and remedies of the Bondholders may be limited by and are subject to the
provisions of federal bankruptcy laws, to other laws or equitable principles that may affect the
enforcement of creditors’ rights, to the exercise of judicial discretion in appropriate cases and to
limitations on legal remedies against local governments. The various opinions of counsel to be
delivered with respect to the Bonds will be similarly qualified.
THE DISTRICT
GENERAL DESCRIPTION
The District was founded in 1869 and consists of four elementary schools, one middle
school, and an administration office. The District is located within Cook County, Illinois (the
“County”) and serves portions of the communities of Matteson, Richton Park, Tinley Park and
Frankfort. The District operates five school buildings to serve its enrollment of approximately
1,843 students: Woodgate, Neil Armstrong, Marya Yates and Sieden Prairie (each providing
educational services for grades pre-K through fifth grade) and Colin Powell (providing educational
services for grades sixth through eighth).
The District provides a wide range of education services to its students. Teachers,
psychologists, nurses, social workers and administrators work together to provide students with
the most current and effective techniques to design an individual educational program to fit their
needs.
The District is governed by an elected seven-member Board and a full-time administrative

staff.
-11-
DISTRICT ADMINISTRATION
The day-to-day affairs of the District are conducted by a full-time staff including the
following central administrative positions.
OFFICIAL TITLE
Dr. Mable Alfred Superintendent

Dr. Demetria Brown Chief School Business Official
The Board appoints the administration. The staff is chosen by the administration with the
approval of the Board. In general, policy decisions are made by the Board while specific program
decisions are made by the administration.
BOARD OF EDUCATION
OFFICIAL POSITION TERM EXPIRES
Dr. William McClinton President April 2021

Carolyn Palmer Vice President April 2023
Bernice Brown Secretary April 2023
Regina Edgecombe Member April 2023
Debra Ellis Member April 2021
Sharee Morton Member April 2023
Carolyn Owens Member April 2021
ENROLLMENT
HISTORICAL PROJECTED
2015/2016 1,849 2020/2021 1,870

2016/2017 1,889 2021/2022 1,900
2017/2018 1,926 2022/2023 1,920
2018/2019 1,910 2023/2024 1,950
2019/2020 1,843 2024/2025 1,970
______________________________
Source: Historical enrollment figures provided by ISBE Fall Enrollment Counts. Enrollment for fiscal year 2019/2020 and projected enrollments
are provided by the District.
-12-
EMPLOYEE UNION MEMBERSHIP AND RELATIONS
At the start of the 2019-2020 school year, the District had 323 full-time employees and 21
part-time employees. Of the total number of employees, approximately 266 are represented by a
union. Employee-union relations are considered to be good. District personnel are organized as
follows:
CONTRACT UNION NUMBER OF

EMPLOYEE GROUP EXPIRES AFFILIATION MEMBERS
Support Staff June 2020 IEA-NEA 98
Teachers June 2021 IEA-NEA 168
POPULATION DATA
The District estimates that its current population is approximately 20,779. The estimated
populations of the City, the County and the State at the times of the last three U.S. Census surveys
were as follows:
% CHANGE
NAME OF ENTITY 1990 2000 2010 2000/2010
Village of Matteson 11,378 12,928 19,009 47.04%

Village of Richton Park 10,523 12,533 13,646 8.88%
The County 5,105,067 5,376,741 5,194,675 -3.39%
The State 11,430,602 12,419,293 12,830,632 3.31%
______________________________
Source: U.S. Census Bureau.
EDUCATIONAL CHARACTERISTICS OF PERSONS 25 YEARS AND OLDER
HIGH SCHOOL 4 OR MORE YEARS

GRADUATES OF COLLEGE
Village of Matteson 96.0% 38.3%

Village of Richton Park 93.3% 28.7%
The County 86.2% 37.2%
The State 88.6% 33.4%
______________________________
Source: U.S. Census Bureau, 2013-2017 American Community Survey 5-Year Estimates.
-13-
FINANCIAL INFORMATION AND ECONOMIC CHARACTERISTICS OF THE DISTRICT
DIRECT GENERAL OBLIGATION BONDS (PRINCIPAL ONLY)(As of the issuance of the Bonds and
refunding of the Refunded Bonds)
SERIES 2004(1) SERIES 2007(2) TOTAL GENERAL

CALENDAR BONDS BONDS THE BONDS OUTSTANDING
YEAR (DECEMBER 1) (DECEMBER 1) (DECEMBER 1) BONDED DEBT
2020 $ 637,294 $637,294

2021 598,971 598,971
2022 194,645 $375,263 569,908
2023 581,470 581,470
2024 556,971 556,971
2025 516,663 516,663
2026 0
2027 0
2028 $1,420,000 1,420,000
2029 1,450,000 1,450,000
2030 1,490,000 1,490,000
2031 1,525,000 1,525,000
2032 1,570,000 1,570,000
2033 1,615,000 1,615,000
2034 1,660,000 1,660,000
2035 1,710,000 1,710,000
2036 1,765,000* 1,765,000
2037 1,825,000* 1,825,000
2038 1,885,000* 1,885,000
2039 1,950,000 1,950,000
TOTAL $1,430,910 $2,030,367 $19,865,000 $23,326,277

______________________________
(1) General Obligation Limited Tax Capital Appreciation School Bonds, Series 2004, dated March 16, 2004.
(2) Series 2007 Bonds.
* Mandatory sinking fund payments.
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OVERLAPPING GENERAL OBLIGATION BONDS
(As of December 16, 2019)
APPLICABLE TO DISTRICT(1)
OUTSTANDING
TAXING BODY BONDS(2) PERCENT AMOUNT
Cook County $2,677,315,000 0.271% $7,244,288

Cook County Forest Preserve District 86,265,000 0.271% 233,416
Metropolitan Water Reclamation District 2,658,492,000 0.269% 7,162,164
Village of Matteson 1,540,000 67.968% 1,046,713
Village of Richton Park 0 37.524% 0
Village of Tinley Park 12,570,000 6.134% 771,071
Richark Park Public Library District 4,120,000 37.414% 1,541,459
Frankfort Square Park District 2,102,947 100.000% 2,102,947
Tinley Park Park District 1,023,000 5.682% 58,123
Township High School District Number 227 17,805,000 44.304% 7,888,355
Community College District No. 515 8,490,000 13.252% 1,125,071
TOTAL OVERLAPPING BONDS $29,173,606
______________________________
Source: With respect to the applicable taxing bodies and the information used to calculate the percentage of overlapping Equalized Assessed
Valuation, the County Clerk’s Office. Information regarding the outstanding bonds of the overlapping taxing bodies was obtained from
publicly available sources.
(1) Percentages based on 2018 EAVs, the most recent available.
(2) Does not include alternate revenue bonds. Under the Debt Reform Act, alternate revenue bonds are not included in the computation of
indebtedness of the overlapping taxing bodies unless the taxes levied to pay the principal of and interest on the alternate revenue bonds are
extended for collection. The District provides no assurance that any of the taxes so levied have not been extended, nor can the District predict
whether any of such taxes will be extended in the future.
-15-
SELECTED FINANCIAL INFORMATION
2018 Estimated Full Value of Taxable Property: $ 1,396,833,168

2018 EAV of Taxable Property: $ 465,611,056(1)
Population Estimate: 20,779(2)
General Obligation Bonds (including this issue): $ 23,326,277

Other Direct General Obligation Debt: $ 0
Total Direct General Obligation Debt: $ 23,326,277
Percentage to Full Value of Taxable Property: 1.67%
Percentage to EAV: 5.01%
Debt Limit (6.9% of EAV): $ 32,127,163
Percentage of Debt Limit: 72.61%
Per Capita: $ 1,123
General Obligation Bonded Debt $ 23,326,277

Overlapping General Obligation Bonded Debt: $ 29,173,606
Total General Obligation Bonded Debt and Overlapping
General Obligation Bonded Debt: $ 52,499,883
Percentage to Full Value of Taxable Property: 3.76%
Percentage to EAV: 11.28%
Per Capita: $ 2,527
______________________________
(1) Includes TIF EAV in the amount of $35,748,944. See “Financial Information and Economic Characteristics of the District-Tax Increment
Financing Districts Located Within the District.”
(2) 2013-2017 American Community Survey 5-Year Estimate.
COMPOSITION OF EAV
2014 2015 2016 2017 2018
By Property Type
Residential $240,660,679 $232,771,938 $241,723,783 $265,277,362 $262,106,361
Farm 814,842 752,353 748,583 786,744 781,057
Commercial 113,933,019 116,609,321 117,551,908 119,483,067 131,338,120
Industrial 29,241,898 29,139,010 30,568,490 37,235,696 34,871,761
Railroad 660,135 796,107 879,465 726,410 764,813
Total EAV $385,310,573 $380,068,729 $391,472,229 $423,509,279 $429,862,112
______________________________
Source: County Clerk’s Office.
-16-
TAX INCREMENT FINANCING DISTRICTS LOCATED WITHIN THE DISTRICT
A portion of the District’s EAV is contained in tax increment financing (“TIF”) districts,
as detailed below. When a TIF district is created within the boundaries of a taxing body, such as
the District, the EAV of the portion of real property designated as a TIF district is frozen at the
level of the tax year in which it was designated as such (the “Base EAV”). Any incremental
increases in property tax revenue produced by the increase in EAV derived from the redevelopment
project area during the life of the TIF district are not provided to the District until the TIF district
expires. The District is not aware of any new TIF districts planned in the immediate future.
LOCATION/
NAME OF TIF BASE EAV 2018 EAV INCREMENTAL EAV
Matteson - Commons $356,125 $ 2,791,601 $ 2,435,476

Matteson - Lincoln Hwy/Cicero 27,008,877 31,608,446 4,610,378
Matteson - 5 7,217,452 6,081,611 1,349,022
Matteson - 6 Lincoln/Governors 22,502 27,767 5,265
Matteson - 7 North Cicero 2,499,792 15,202,035 12,702,243
Richton Park - Sauk Trail/I-57 33,680 614,440 580,760
Richton Park - Lakewood 5 419,871 14,485,671 14,065,800
Richton Park - Southwest Corridor 3,740,249 3,306,685 0
Total Incremental EAV $ 35,748,944
District’s Base 2018 EAV 429,862,112
Enterprise Zone EAV 0
Total EAV $465,611,056
______________________________
Source: County Clerk’s Office.
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TREND OF EAV
% CHANGE IN EAV FROM

LEVY YEAR EAV(1) PREVIOUS YEAR
2014 $385,310,573 -2.19%(2)

2015 380,068,729 -1.36%
2016 391,472,229 3.00%
2017 423,509,279 8.18%
2018 429,862,112 1.50%
______________________________
Source: Cook County Clerk’s Office.
(1) Excludes TIF increment.
(2) Based on 2013 EAV of $3,439,118,133.
TAXES EXTENDED AND COLLECTED
TAX LEVY YEAR/ TAXES TAXES COLLECTED PERCENT

COLLECTION YEAR EXTENDED* AND DISTRIBUTED(1) COLLECTED
2014/15 $29,067,855 $27,844,338 95.79%

2015/16 29,792,610 28,364,483 95.21%
2016/17 30,280,372 28,345,147 93.61%
2017/18 30,983,938 28,775,546 92.87%
2018/19 32,783,159 29,470,378 89.89%(2)
______________________________
Source: Cook County Treasurer’s Offices.
(1) Excludes interest.
(2) Collections are through November 30, 2019.
* In order to improve future collection percentages, the District has directed the County Clerk to increase from 5% to 10% the allowance for
uncollected taxes for its debt service levy. As a result of such request, the County Clerk will extend for collection $1.10 for each $1.00 of
debt service.
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DISTRICT TAX RATES BY PURPOSE 2014-2018
(Per $100 EAV)
MAXIMUM
PURPOSE 2014 2015 2016 2017 2018 RATE(1)
IMRF $0.4010 $0.4144 $0.4023 $0.0117 $0.0000 None(2)

Social Security 0.0668 0.0822 0.1073 0.3520 0.2886 None
Liability Insurance 0.4010 0.4144 0.4023 0.0000 0.0000 None
Transportation 1.3822 1.2560 1.2401 0.2346 0.2405 None
Education 3.2746 3.5000 3.3999 5.2272 5.6093 None
Building 0.5146 0.5500 0.5343 0.4822 0.5291 0.5500
Bonds and Interest 0.5629 0.6311 0.6416 0.6170 0.6559 None
Working Cash Fund 0.0468 0.0500 0.0486 0.0438 0.0481 0.0500
Life Safety 0.0936 0.1000 0.0971 0.0000 0.0000 0.1000
Special Education 0.3742 0.4000 0.3886 0.0000 0.0000 0.4000
Leasing Educational Facilities 0.0936 0.1000 0.0971 0.0000 0.0000 0.1000
Limited Bonds 0.3774 0.3863 0.3750 0.3467 0.3415 None
Total District Tax Rate $7.5887 $7.8844 $7.7342 $7.3152 $7.7130
______________________________
(1) See "Real Property Assessment, Tax Levy and Collection Procedures - Property Tax Extension Limitation Law" herein for information on
the operation of such maximum rates.
(2) Pursuant to Public Act 100-465, beginning with levy year 2017, the District no longer has a maximum tax rate for educational fund purposes,
provided that the aggregate tax rate for the various purposes subject to the Limitation Law does not exceed the District's limiting rate under
the Limitation Law.
REPRESENTATIVE TOTAL TAX RATES 2014-2018

(Per $100 EAV)
TAXING AUTHORITY 2014 2015 2016 2017 2018
The District $7.589 $7.884 $7.734 $7.315 $7.713

Cook County 0.568 0.552 0.533 0.496 0.489
Cook County Forest Preserve District 0.069 0.069 0.063 0.062 0.060
Metropolitan Water Reclamation District 0.430 0.426 0.406 0.402 0.396
Consolidated Elections 0.000 0.034 0.000 0.031 0.000
Rich Township 0.302 0.296 0.284 0.262 0.275
General Assistance Rich 0.048 0.052 0.050 0.046 0.050
Road & Bridge Rich 0.101 0.106 0.103 0.097 0.105
Village of Matteson 1.659 1.810 1.891 1.938 2.183
Matteson Area Public Library District 0.676 0.686 0.667 0.635 0.687
South Cook Mosquito Abatement Harvey 0.017 0.017 0.017 0.015 0.017
Township High School District Number 227 6.222 6.464 6.231 5.916 6.045
Community College District No. 515 0.458 0.487 0.481 0.454 0.477
Total Representative Tax Rate(1) $18.139 $18.883 $18.460 $17.669 $18.497
______________________________
(1) Based on the largest tax code in the District.
-19-
TEN LARGEST TAXPAYERS
PERCENT OF
DISTRICT’S
TAXPAYER NAME 2018 EAV TOTAL EAV
Wal Mart Real Estate $18,506,285 3.97%

Realty American L.P. 16,787,550 3.61%
GCAA Attn. Manheim Tax 14,197,260 3.05%
Tinley Park Convention 9,648,871 2.07%
Michael Robertson 8,611,303 1.85%
Ryan LLC Pts. 7,262,410 1.56%
Target Property Tax 6,646,708 1.43%
Carmax 5,715,167 1.23%
Engineered Polymer Sol 5,632,798 1.21%
Timber Ridge Mobile HQ 5,587,365 1.20%
$98,595,717 21.18%
______________________________
Source: Cook County Clerk's office. Values shown include TIF increments (if any).
The above taxpayers represent 21.18% of the District's 2018 EAV of $465,611,056 (includes TIF value). Reasonable efforts have been made to
seek out and report the largest taxpayers. However, many of the taxpayers listed may own multiple parcels, and it is possible that some smaller
parcels and their valuations may not be included.
RETAILERS’ OCCUPATION, SERVICE OCCUPATION AND USE TAX
The following table shows the distribution of the municipal portion of the Retailers’
Occupation, Service Occupation and Use Tax collected by the Illinois Department of Revenue (the
“Department”) from retailers within the Villages. The table indicates the level of retail activity
in the City.
STATE SALES TAX DISTRIBUTION(1)
CALENDAR YEAR VILLAGE OF VILLAGE OF

MATTESON RICHTON PARK
2014 $6,726,917 $ 386,085

2015 6,748,342 400,148
2016 6,828,790 729,347
2017 6,429,719 929,048
2018 5,801,519 1,029,319
2019(2) 4,463,022 776,982
______________________________
Source: Illinois Department of Revenue.
(1) Tax distributions are based on records of the Illinois Department of Revenue relating to the 1% municipal portion of the Retailers' Occupation,
Service Occupation and Use Tax, collected on behalf of the Villages, less a State administration fee. The municipal 1% sales tax includes tax
receipts from the sale of food and drugs, which are not taxed by the State.
(2) Through September 2019.
-20-
NEW PROPERTY
The following chart indicates the EAV of “new property” (as defined in the Limitation
Law) within the District for each of the last five levy years.
LEVY NEW
YEAR PROPERTY
2014 $ 73,626
2015 3,990,598
2016 209,360
2017 752,967
2018 25,278,864*
______________________________
* Increase in new property value due to TIF district expirations within the District.
-21-
LARGEST EMPLOYERS
Below is a listing of the largest employers within or near the District area:
APPROXIMATE
NUMBER OF
EMPLOYER PRODUCT OR SERVICE LOCATION EMPLOYEES
Midwest Publishers Newspaper publishing Tinley Park 550
Manheim Chicago Wholesale auto auction Matteson 500
Panduit Corp. Corporate headquarters & cable ties, accessories, Tinley Park 300
terminals, lugs, network wiring & plastic wiring ducts
St. Coletta’s of Illinois Contract packaging & assembly Tinley Park 300
Menards Hardware, home appliances Tinley Park 230
CTF Illinois Contract packaging & assembly Tinley Park 220
Conifer Health Solution, Inc. Healthcare consulting Tinley Park 200
Davids & Co., Clarence Company headquarters & landscape management & Matteson 150
construction contractors
Illinois Collection Service, Inc. Debt collection service Tinley Park 140
KVH Industries, Inc. Gyroscopes Tinley Park 125
ITW Deltar Machine works Richton Park 110
Best-Tronics Mfg., Inc. Professional audio, fiber-optic, coaxial & network cable & Tinley Park 110
wire harnesses, wire leads & ground wires for the
telecommunications, medical, broadcast, gaming/arcade,
bowling alley & marine industries & custom guitar peddle
board & audio racks & looms
Goodheart-Willcox Publisher Trade, technology, automotive, technical, family, Tinley Park 110
consumer sciences, business & career education,
agriculture education, health science & health education
textbook publishing for schools & industry & individual
training
UGN, Inc. Corporate headquarters; automotive interior trim Tinley Park 110
X-Cel Technologies, Inc. Precision CNC milling & machining job shop Tinley Park 109
Anvil International Distributor of grooved couplings, fittings & valves, pipe Tinley Park 100
hangers, supports, seamless pipe nipples & malleable, cast
iron & forged steel fittings
New & pre-owned motor vehicles sales & service, Tinley Park 100
Apple Chevrolet, Inc. including spare/replacement parts & accessories
Village of Tinley Park Economic development & planning, including business Tinley Park 100
information source, commercial, retail, industrial & small
business development, community marketing organization
& business financing assistance
______________________________
Source: 2019 Illinois Services and 2019 Illinois Manufacturers Directories, and the Illinois Department of Commerce and Economic Opportunity.
-22-
UNEMPLOYMENT RATES
The following table shows the trend in annual average unemployment rates for the City,
the County and the State.
VILLAGE OF VILLAGE OF
MATTESON RICHTON PARK THE COUNTY THE STATE
2014 - Average 9.2% 9.7% 7.5% 7.1%

2015 - Average 7.7% 7.7% 6.2% 6.0%
2016 - Average 7.0% 7.3% 6.1% 5.8%
2017 - Average 6.1% 6.1% 5.2% 4.9%
2018 - Average 5.2% 5.1% 4.0% 4.3%
2019 - Average (10 mos.) N/A N/A 3.9% 4.1%
______________________________
Source: State of Illinois Department of Employment Security.
SPECIFIED OWNER-OCCUPIED UNITS
VILLAGE OF MATTESON VILLAGE OF RICHTON PARK
VALUE NUMBER PERCENT NUMBER PERCENT
Under $50,000 323 5.87% 171 6.12%

$50,000 to $99,999 725 13.18% 355 12.71%
$100,000 to $149,999 1,407 25.57% 1,004 35.96%
$150,000 to $199,999 1,464 26.61% 600 21.49%
$200,000 to $299,999 988 17.96% 608 21.78%
$300,000 to $499,999 571 10.38% 38 1.36%
$500,000 to $999,999 0 0.00% 16 0.57%
$1,000,000 or more 24 0.44% 0 0.00%
Total 5,502 100.00% 2,792 100.00%
THE COUNTY THE STATE
VALUE NUMBER PERCENT NUMBER PERCENT
Under $50,000 47,678 4.29% 231,604 7.27%

$50,000 to $99,999 103,126 9.27% 501,389 15.74%
$100,000 to $149,999 149,729 13.46% 516,996 16.23%
$150,000 to $199,999 178,608 16.06% 514,629 16.16%
$200,000 to $299,999 258,702 23.26% 653,765 20.53%
$300,000 to $499,999 232,983 20.94% 505,831 15.88%
$500,000 to $999,999 111,183 10.00% 209,287 6.57%
$1,000,000 or more 30,374 2.73% 51,641 1.62%
Total 1,112,383 100.00% 3,185,142 100.00%
______________________________
Source: U U.S. Census Bureau, 2013-2017 American Community Survey 5-Year Estimates..
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EMPLOYMENT BY INDUSTRY
CLASSIFICATION NUMBER PERCENT NUMBER PERCENT

Agriculture, forestry, fishing, hunting and mining 33 0.35% 21 0.37%
Construction 362 3.80% 256 4.48%
Manufacturing 730 7.67% 645 11.29%
Wholesale Trade 115 1.21% 40 0.70%
Retail Trade 1,118 11.74% 624 10.92%
Transportation, warehousing and utilities 822 8.63% 766 13.40%
Information 284 2.98% 119 2.08%
Finance, insurance and real estate 735 7.72% 535 9.36%
Professional, scientific management
administrative & waste management 686 7.20% 406 7.10%
Educational, health and social services 3,221 33.82% 1,662 29.08%
Arts, entertainment, recreation, accommodations
and food services 561 5.89% 247 4.32%
Other Services 381 4.00% 123 2.15%
Public Administration 475 4.99% 271 4.74%
Total 9,523 100.00% 5,715 100.00%

Agriculture, forestry, fishing, hunting and mining 4,337 0.17% 65,813 1.06%
Construction 117,207 4.65% 323,578 5.23%
Manufacturing 250,458 9.93% 762,175 12.33%
Wholesale Trade 72,751 2.89% 190,916 3.09%
Retail Trade 248,657 9.86% 669,300 10.83%
Transportation, warehousing and utilities 172,388 6.84% 378,576 6.12%
Information 55,694 2.21% 120,295 1.95%
Finance, insurance and real estate 203,124 8.06% 451,556 7.30%
Professional, scientific management
administrative & waste management 362,791 14.39% 722,129 11.68%
Educational, health and social services 571,784 22.68% 1,416,064 22.91%
Arts, entertainment, recreation, accommodations
and food services 250,137 9.92% 561,894 9.09%
Other Services 124,005 4.92% 292,409 4.73%
Public Administration 88,104 3.49% 226,948 3.67%
Total 2,521,437 100.00% 6,181,653 100.00%
______________________________
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EMPLOYMENT BY OCCUPATION
Management, professional and related

occupations 4,191 44.01% 2,080 36.40%
Service occupations 1,696 17.81% 823 14.40%
Sales & office occupations 2,086 21.90% 1,392 24.36%
Natural resources, construction and
maintenance occupations 500 5.25% 468 8.19%
Production, transportation and material
moving occupations 1,050 11.03% 952 16.66%
Total 9,523 100.00% 5,715 100.00%
Management, professional and related

occupations 991,828 39.34% 2,321,710 37.56%
Service occupations 452,513 17.95% 1,067,320 17.27%
Sales & office occupations 595,172 23.60% 1,481,082 23.96%
Natural resources, construction and
maintenance occupations 150,561 5.97% 446,857 7.23%
Production, transportation and material
moving occupations 331,363 13.14% 864,684 13.99%
Total 2,521,437 100.00% 6,181,653 100.00%

______________________________
Source: U.S. Census Bureau (2013-2017 American Community Survey).
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MEDIAN HOUSEHOLD INCOME
According to the U.S. Census Bureau 2013-2017 American Community Survey, the
Village of Matteson has a median household income of $85,202 and the Village of Richton Park
had a median household income of $53,179. This compares to $59,426 for the County and $61,229
for the State. The following table represents the distribution of household incomes for the Villages,
the County and the State at the time of such survey.
NUMBER PERCENT NUMBER PERCENT
Under $10,000 438 6.49% 543 10.78%

$10,000 to $14,999 295 4.37% 283 5.62%
$15,000 to $24,999 633 9.37% 473 9.39%
$25,000 to $34,999 265 3.92% 640 12.71%
$35,000 to $49,999 601 8.90% 507 10.07%
$50,000 to $74,999 727 10.77% 849 16.86%
$75,000 to $99,999 1,244 18.42% 604 11.99%
$100,000 to $149,999 1,501 22.23% 838 16.64%
$150,000 to $199,999 733 10.85% 233 4.63%
$200,000 or more 316 4.68% 67 1.33%
Total 6,753 100.00% 5,037 100.00%
NUMBER PERCENT NUMBER PERCENT
Under $10,000 159,387 8.15% 331,315 6.88%

$10,000 to $14,999 89,384 4.57% 204,278 4.24%
$15,000 to $24,999 189,773 9.70% 446,453 9.27%
$25,000 to $34,999 173,798 8.88% 425,803 8.84%
$35,000 to $49,999 232,740 11.90% 593,198 12.31%
$50,000 to $74,999 321,931 16.45% 836,760 17.37%
$75,000 to $99,999 234,621 11.99% 613,614 12.73%
$100,000 to $149,999 278,593 14.24% 724,960 15.05%
$150,000 to $199,999 126,015 6.44% 311,141 6.46%
$200,000 or more 150,319 7.68% 330,930 6.87%
Total 1,956,561 100.00% 4,818,452 100.00%
_____________________________
Source: U.S. Census Bureau, 2013-2017 American Community Survey 5-Year Estimates..
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PER CAPITA INCOME
2017
Village of Matteson $34,136

Village of Richton Park 24,490
The County 32,722
The State 32,924
______________________________
SHORT-TERM BORROWING
The District has not issued tax anticipation warrants or revenue anticipation notes during
the last five years to meet its short-term current year cash flow requirements.
FUTURE DEBT
Except for the Bonds, the District does not currently anticipate issuing any other debt
within the next six months.
DEFAULT RECORD
The District has no record of default and has met its debt repayment obligations promptly.
WORKING CASH FUND
The District is authorized to issue (subject to the provisions of the Limitation Law) general
obligation bonds to create, re-create or increase a Working Cash Fund. Such fund can also be
created, re-created or increased by the levy of an annual tax not to exceed $.05 per hundred dollars
of EAV (the “Working Cash Fund Tax”). The purpose of the fund is to enable the District to have
sufficient cash to meet demands for expenditures for corporate purposes. Moneys in the Working
Cash Fund may be loaned, in whole or in part, as authorized and directed by the Board, to any fund
or funds of the District in anticipation of ad valorem property taxes levied by the District for such
fund or funds. The Working Cash Fund is reimbursed when the anticipated taxes or other moneys
are received by the District.
Any time moneys are available in the Working Cash Fund, they must be transferred to such
other funds of the District and used for any and all school purposes so as to avoid, whenever
possible, the issuance of tax anticipation warrants or notes. Interest earned from the investment of
the Working Cash Fund may be transferred from the Working Cash Fund to other funds of the
District that are most in need of the interest. Moneys in the Working Cash Fund may not be
appropriated by the Board in the annual budget.
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The District also has the authority to abate amounts in the Working Cash Fund to any other
fund of the District if the amount on deposit in such other fund after the abatement will not
constitute an excess accumulation of money in that fund and as long as the District maintains an
amount to the credit of the Working Cash Fund at least equal to 0.05% of the then current value,
as equalized or assessed by the Department, of the taxable property in the District.
Finally, the District may abolish the Working Cash Fund and direct the transfer of any
balance thereof to the educational fund at the close of the then current fiscal year. After such
abolishment, all outstanding Working Cash Fund Taxes levied will be paid into the educational
fund upon collection. Outstanding loans from the Working Cash Fund to other funds of the District
at the time of abolishment will be paid or become payable to the educational fund at the close of
the then current fiscal year. The outstanding balance in the Working Cash Fund at the time of
abolishment, including all outstanding loans from the Working Cash Fund to other funds of the
District and all outstanding Working Cash Fund Taxes levied, may be used and applied by the
District for the purpose of reducing, by the balance in the Working Cash Fund at the close of the
fiscal year, the amount of taxes that the Board otherwise would be authorized or required to levy
for educational purposes for the fiscal year immediately succeeding the fiscal year in which the
Working Cash Fund is abolished.
WORKING CASH FUND SUMMARY
FISCAL YEAR END OF YEAR FUND BALANCE
2015 $1,841,644
2016 2,013,573
2017 2,183,753
2018 2,384,031
2019 2,557,376
______________________________
Source: Compiled from the District's Annual Financial Reports for Fiscal Years ending June 30, 2015-2019. Numbers for fiscal year June 30,
2019 are unaudited.
REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES
SUMMARY OF PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES
A separate tax to pay certain principal of and interest on the Bonds will be levied on all
taxable real property within the District. The information under this caption describes the current
procedures for real property assessments, tax levies and collections in the County. There can be
no assurance that the procedures described herein will not change.
REAL PROPERTY ASSESSMENT
The County Assessor (the “Assessor”) is responsible for the assessment of all taxable real
property within the County, including such property located within the boundaries of the District,
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except for certain railroad property, pollution control facilities and low sulfur dioxide emission
coal-fueled devices, which are assessed directly by the Department. For triennial reassessment
purposes, the County is divided into three Districts: west and south suburbs (the “South Tri”),
north and northwest suburbs (the “North Tri”), and the City of Chicago (the “City Tri”). The
District is located in the South Tri and was last reassessed for the 2017 tax levy year. The District
will next be reassessed for the 2020 levy year.
Real property in the County is separated into classes for assessment purposes. After the
Assessor establishes the fair market value of a parcel of property, that value is multiplied by the
appropriate classification percentage to arrive at the assessed valuation (the “Assessed Valuation”)
for the parcel. Such classification percentages range from 10% for certain residential, commercial
and industrial property to 25% for other industrial and commercial property.
Property is classified for assessment into six basic categories, each of which is assessed at
various percentages of fair market value as follows: Class 1 - unimproved real estate (10%);
Class 2 - residential (10%); Class 3 - rental-residential (16% in tax year 2009, 13% in tax year
2010, and 10% in tax year 2011 and subsequent years); Class 4 - not-for-profit (25%);
Class 5a - commercial (25%); and Class 5b - industrial (25%).
In addition, property may be temporarily classified into one of eight additional assessment
classification categories. Upon expiration of such classification, property so classified will revert
to one of the basic six assessment classifications described above. The additional assessment
classifications are as follows:
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REVERTS TO
CLASS DESCRIPTION OF QUALIFYING PROPERTY ASSESSMENT PERCENTAGE CLASS
6b Newly constructed industrial properties or 10% for first 10 years and any 5b
substantially rehabilitated sections of existing 10 year renewal; if not renewed,
industrial properties 15% in year 11, 20% in year 12
C Industrial property that has undergone 10% for first 10 years, 15% in year 5b
environmental testing and remediation 11, 20% in year 12
Commercial property that has undergone 10% for first 10 years, 15% in year 5a
environmental testing and remediation 11, 20% in year 12
7a/7b Newly constructed or substantially rehabilitated 10% for first 10 years, 15% in year 5a
commercial properties in an area in need of 11, 20% in year 12
commercial development
7c Newly constructed or rehabilitated commercial 10% for first 3 years and any 3 year 5a
buildings and acquisition of abandoned property renewal; if not renewed, 15% in
and rehabilitation of buildings thereon including year 4, 20% in year 5
the land upon which the buildings are situated and
the land related to the rehabilitation
8 Industrial properties in enterprise communities or 10% for first 10 years and any 5b
zones in need of substantial revitalization 10-year renewal; if not renewed,
15% in year 11, 20% in year 12
Commercial properties in enterprise communities 10% for first 10 years, 15% in year 5a
or zones in need of substantial revitalization 11, 20% in year 12
9 New or substantially rehabilitated multi-family 10% for first 10 years and any As
residential properties in target areas, 10 year renewal Applicable
empowerment or enterprise zones
S Class 3 properties subject to Section 8 contracts 10% for term of Section 8 contract 3
renewed under the “Mark up to Market” option renewal and any subsequent
renewal
L Substantially rehabilitated Class 3, 4 or 5b 3, 4, or 5b
10% for first 10 years and any
properties qualifying as “Landmark” or
10-year renewal; if not renewed,
“Contributing” buildings
15% in year 11, 20% in year 12
Substantially rehabilitated Class 5a properties 5a
10% for first 10 years, 15% in year
qualifying as “Landmark” or “Contributing”
11, 20% in year 12
buildings
The Assessor has established procedures enabling taxpayers to contest their proposed
Assessed Valuations. Once the Assessor certifies its final Assessed Valuations, a taxpayer can
seek review of its assessment by appealing to the Cook County Board of Review (the “Board of
Review”), which consists of three commissioners elected by the voters of the County. The Board
of Review has the power to adjust the Assessed Valuations set by the Assessor.
Owners of residential property having six or fewer units are able to appeal decisions of the
Board of Review to the Illinois Property Tax Appeal Board (the “PTAB”), a statewide
administrative body. The PTAB has the power to determine the Assessed Valuation of real
property based on equity and the weight of the evidence. Taxpayers may appeal the decision of
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PTAB to either the Circuit Court of Cook County (the “Circuit Court”) or the Illinois Appellate
Court under the Illinois Administrative Review Law.
As an alternative to seeking review of Assessed Valuations by PTAB, taxpayers who have

first exhausted their remedies before the Board of Review may file an objection in the Circuit
Court. The procedure under this alternative is similar to the judicial review procedure described
in the immediately preceding paragraph, however, the standard of proof differs. In addition, in
cases where the Assessor agrees that an assessment error has been made after tax bills have been
issued, the Assessor can correct any factual error, and thus reduce the amount of taxes due, by
issuing a Certificate of Error. Certificates of Error are not issued in cases where the only issue is
the opinion of the valuation of the property.
EQUALIZATION
After the Assessor has established the Assessed Valuation for each parcel for a given year,
and following any revisions by the Board of Review or PTAB, the Department is required by
statute to review the Assessed Valuations. The Department establishes an equalization factor (the
“Equalization Factor”), commonly called the “multiplier,” for each county to make all valuations
uniform among the 102 counties in the State. Under State law, the aggregate of the assessments
within each county is equalized at 33-1/3% of the estimated fair cash value of real property located
within the county prior to any applicable exemptions. One multiplier is applied to all property in
the County, regardless of its assessment category, except for certain farmland property and wind
energy assessable property, which are not subject to equalization. The following table sets forth
the Equalization Factor for the County for the last ten tax levy years.
TAX LEVY YEAR EQUALIZATION FACTOR
2009 3.3701
2010 3.3000
2011 2.9706
2012 2.8056
2013 2.6621
2014 2.7253
2015 2.6685
2016 2.8032
2017 2.9627
2018 2.9109
Once the Equalization Factor is established, the Assessed Valuation, as revised by the
Board of Review or PTAB, is multiplied by the Equalization Factor to determine the EAV of that
parcel. The EAV for each parcel is the final property valuation used for determination of tax
liability. The aggregate EAV for all parcels in any taxing body’s jurisdiction, plus the valuation
of property assessed directly by the Department, constitute the total real estate tax base for the
taxing body, which is used to calculate tax rates (the “Assessment Base”).
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EXEMPTIONS
The Illinois Property Tax Code, as amended (the “Property Tax Code”), exempts certain
property from taxation. Certain property is exempt from taxation on the basis of ownership and/or
use, including, but not limited to, public parks, not-for-profit schools, public schools, churches,
not-for-profit hospitals and public hospitals. In addition, the Property Tax Code provides a variety
of homestead exemptions, which are discussed below.
An annual General Homestead Exemption provides that the EAV of certain property
owned and used for residential purposes (“Residential Property”) may be reduced by the amount
of any increase over the 1977 EAV, up to a maximum reduction of $7,000 for tax years 2012
through 2016, and $10,000 for tax years 2017 and thereafter.
The Long-Time Occupant Homestead Exemption limits the increase in EAV of a

taxpayer’s homestead property to 10% per year if such taxpayer has owned the property for at least
10 years as of January 1 of the assessment year (or 5 years if purchased with certain government
assistance) and has a household income of $100,000 or less (“Qualified Homestead Property”).
If the taxpayer’s annual income is $75,000 or less, the EAV of the Qualified Homestead Property
may increase by no more than 7% per year. There is no exemption limit for Qualified Homestead
Properties.
The Homestead Improvement Exemption applies to Residential Property that has been
improved and to properties that have been rebuilt in the two years following a catastrophic event,
as defined in the Property Tax Code. The exemption is limited to an annual maximum amount of
$75,000 for up to four years, to the extent the Assessed Valuation is attributable solely to such
improvements or rebuilding.
The Senior Citizens Homestead Exemption annually reduces the EAV on residences owned
and occupied by senior citizens. The maximum exemption is $5,000 for tax years 2013 through
2016 and $8,000 for tax years 2017 and thereafter.
The Senior Citizens Assessment Freeze Homestead Exemption freezes property tax
assessments for homeowners who are 65 and older, reside in their property as their principal place
of residence and receive a household income not in excess of (i) $55,000 through assessment year
2016 and (ii) $65,000 beginning in assessment year 2017. This exemption grants to qualifying
senior citizens an exemption equal to the difference between (a) the current EAV of the residence
and (b) 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.
Beginning in tax year 2017, the amount of the exemption is equal to the greater of the amount
calculated as described in the previous sentence (as more completely set forth in the Property Tax
Code) or $2,000.
Beginning January 1, 2015 purchasers of certain single family homes and residences of
one to six units located in certain targeted areas (as defined in the applicable section of the Property
Tax Code) can apply for the Community Stabilization Assessment Freeze Pilot Program. To be
eligible the purchaser must meet certain requirements for rehabilitating the property, including
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expenditures of at least $5 per square foot, adjusted by CPI. Upon meeting the requirements, the
assessed value of the improvements is reduced by (a) 90% in the first seven years, (b) 65% in the
eighth year and (c) 35% in the ninth year. The benefit ceases in the tenth year. The program will
be phased out by June 30, 2029.
The Natural Disaster Homestead Exemption (the “Natural Disaster Exemption”) applies
to homestead properties containing a residential structure that has been rebuilt following a natural
disaster occurring in taxable year 2012 or any taxable year thereafter. A natural disaster is an
occurrence of widespread or severe damage or loss of property resulting from any catastrophic
cause including but not limited to fire, flood, earthquake, wind, or storm. The Natural Disaster
Exemption is equal to the equalized assessed value of the residence in the first taxable year for
which the taxpayer applies for the exemption minus the base amount. To be eligible for the Natural
Disaster Exemption, the residential structure must be rebuilt within two years after the date of the
natural disaster, and the square footage of the rebuilt residential structure may not be more than
110% of the square footage of the original residential structure as it existed immediately prior to
the natural disaster. The Natural Disaster Exemption remains at a constant amount until the taxable
year in which the property is sold or transferred.
Three exemptions are available to veterans of the United States armed forces. The Veterans
with Disabilities Exemption for Specially-Adapted Housing exempts up to $100,000 of the
Assessed Valuation of property owned and used exclusively by veterans with a disability, their
spouses or unmarried surviving spouses. Qualification for this exemption requires the veteran’s
disability to be of such a nature that the federal government has authorized payment for purchase
of specially adapted housing under the U.S. Code as certified to annually by the Illinois
Department of Veterans Affairs or for housing or adaptations donated by a charitable organization
to such disabled veteran.
The Standard Homestead Exemption for Veterans with Disabilities provides an annual
homestead exemption to veterans with a service-connected disability based on the percentage of
such disability. If the veteran has a (a) service-connected disability of 30% or more but less than
50%, the annual exemption is $2,500, (b) service-connected disability of 50% or more but less
than 70%, the annual exemption is $5,000, and (c) service-connected disability of 70% or more,
the property is exempt from taxation.
The Returning Veterans’ Homestead Exemption is available for property owned and
occupied as the principal residence of a veteran in the assessment year, and the year following the
assessment year, in which the veteran returns from an armed conflict while on active duty in the
United States armed forces. This provision grants a one-time, two-year homestead exemption of
$5,000.
Finally, the Homestead Exemption for Persons with Disabilities provides an annual
homestead exemption in the amount of $2,000 for property that is owned and occupied by certain
disabled persons who meet State-mandated guidelines.
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TAX LEVY
As part of the annual budgetary process of governmental units (the “Units”) with power
to levy taxes in the County, the designated body for each Unit annually adopts proceedings to levy
real estate taxes. The administration and collection of real estate taxes is statutorily assigned to
the County Clerk and the County Treasurer. After the Units file their annual tax levies, the County
Clerk computes the annual tax rate for each Unit. The County Clerk computes the Unit’s maximum
allowable levy by multiplying the maximum tax rate for that Unit by the prior year’s EAV for all
property currently in the District. The prior year’s EAV includes the EAV of any new property,
the current year value of any annexed property and any recovered tax increment value, minus any
disconnected property for the current year under the Limitation Law. The tax rate for a Unit is
computed by dividing the lesser of the maximum allowable levy or the actual levy by the current
year’s EAV.
PROPERTY TAX EXTENSION LIMITATION LAW
The Limitation Law is applied after the prior year EAV limitation. The Limitation Law
limits the annual growth in the amount of property taxes to be extended for certain Illinois
non-home rule units, including the District. The effect of the Limitation Law is to limit the amount
of property taxes that can be extended for a taxing body. In addition, general obligation bonds,
notes and installment contracts payable from ad valorem taxes, unlimited as to rate and amount,
cannot be issued by the affected taxing bodies unless they are approved by referendum, are
alternate bonds or are for certain refunding purposes (such as the Bonds).
The use of prior year EAVs to limit the allowable tax levy may reduce tax rates for funds
that are at or near their maximum rates in taxing Districts with rising EAVs. These reduced rates
and all other rates for those funds subject to the Limitation Law are added together, which results
in the aggregate preliminary rate. The aggregate preliminary rate is then compared to the limiting
rate. If the limiting rate is more than the aggregate preliminary rate, there is no further reduction
in rates due to the Limitation Law. If the limiting rate is less than the aggregate preliminary rate,
the aggregate preliminary rate is further reduced to the limiting rate. In all cases, taxes are
extended using current year EAV under Section 18-140 of the Property Tax Code.
The District has the authority to levy taxes for many different purposes. See “FINANCIAL
INFORMATION AND ECONOMIC CHARACTERISTICS OF THE DISTRICT - School District Tax Rates by
Purpose.” The ceiling at any particular time on the rate at which these taxes may be extended for
the District is either (a) unlimited (as provided by statute), (b) initially set by statute but permitted
to be increased by referendum, (c) capped by statute, or (d) limited to the rate approved by
referendum. The only ceiling on a particular tax rate is the ceiling set by statute, at which the rate
is not permitted to be further increased by referendum or otherwise. Therefore, taxing Districts
(such as the District) have flexibility to levy taxes for the purposes for which they most need the
money. The total aggregate tax rate for the various purposes subject to the Limitation Law,
however, will not be allowed to exceed the District’s limiting rate computed in accordance with
the provisions of the Limitation Law.
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Public Act 100-465 provides that if the District’s Adequacy Target (as defined under
“STATE AID” herein) exceeds 110% for the school year that begins during the calendar year
immediately preceding the levy year for which a tax reduction is sought, a petition signed by at
least 10% of the registered voters in the District may be filed requiring a proposition to be
submitted to the District’s voters at the next consolidated election in April of odd-numbered years
asking the voters whether the District must reduce its extension for educational purposes for the
levy year in which the election is held to an amount that is less than the extension for educational
purposes for the immediately preceding levy year. The reduced extension, however, may not be
more than 10% lower than the amount extended for educational purposes in the previous levy year
and may not cause the District’s Adequacy Target to fall below 110% for the levy year for which
the reduction is sought. If the voters approve the proposition, the County Clerk will extend a rate
for educational purposes that is no greater than the limiting rate for educational purposes computed
in accordance with the Limitation Law. If such proposition is submitted to the voters, it may not
be submitted again at any of the next two consolidated elections.
In general, the annual growth permitted under the Limitation Law is the lesser of 5% or the
percentage increase in the Consumer Price Index during the calendar year preceding the levy year.
Taxes can also be increased due to new construction, referendum approval of tax rate increases,
mergers and consolidations.
Illinois legislators have introduced several proposals to modify the Limitation Law,
including freezing property taxes and extending tax caps to all taxing bodies in the State. The
District cannot predict whether, or in what form, any change to the Limitation Law may be enacted
into law, nor can the District predict the effect of any such change on the District’s finances.
EXTENSIONS
The County Clerk then computes the total tax rate applicable to each parcel of real property
by aggregating the tax rates of all of the Units having jurisdiction over the particular parcel. The
County Clerk extends the tax by entering the tax (determined by multiplying the total tax rate by
the EAV of that parcel for the current assessment year) in the books prepared for the County
Collector (the “Warrant Books”) along with the tax rates, the Assessed Valuation and the EAV.
The Warrant Books are the County Collector’s authority for the collection of taxes and are used
by the County Collector as the basis for issuing tax bills to all property owners.
COLLECTIONS
Property taxes are collected by the County Collector, who also serves as the County
Treasurer, who remits to each Unit its share of the collections. Taxes levied in one year become
payable during the following year in two installments, the first due on March 1 and the second on
the later of August 1 or 30 days after the mailing of the tax bills. A payment due is deemed to be
paid on time if the payment is postmarked on the due date. Beginning with the first installment
payable in 2010, the first installment is equal to 55% of the prior year’s tax bill. However, if a
Certificate of Error is approved by a court or certified on or before November 30 of the preceding
year and before the estimated tax bills are prepared, then the first installment is instead based on
the certain percentage of the corrected prior year’s tax bill. The second installment covers the
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balance of the current year’s tax bill, and is based on the then current tax year levy, Assessed
Valuation and Equalization Factor, and reflects any changes from the prior year in those factors.
The first installment penalty date has been the first business day in March for each of the last ten
years. However, for 2010, the first installment penalty date was established as April 1 by statute.
The following table sets forth the second installment penalty date for the last ten tax levy years in
the County.
SECOND INSTALLMENT
TAX LEVY YEAR PENALTY DATE
2009 December 13, 2010

2010 November 1, 2011
2011 August 1, 2012
2012 August 1, 2013
2013 August 1, 2014
2014 August 3, 2015
2015 August 1, 2016
2016 August 1, 2017
2017 August 1, 2018
2018 August 1, 2019
It is possible that the changes to the assessment appeals process described above will cause
delays similar to those experienced in past years in preparation and mailing of the second
installment in future years. In the future, the County may provide for tax bills to be payable in
four installments instead of two.
During the periods of peak collections, tax receipts are forwarded to each Unit on a weekly
basis. Upon receipt of taxes from the County Collector, the District promptly credits the taxes
received to the funds for which they were levied.
Within 90 days following the second installment due date, the County Collector presents
the Warrant Books to the Circuit Court and applies for a judgment for all unpaid taxes. The court
orders resulting from the application for judgment provides for an Annual Tax Sale (the “Annual
Tax Sale”) of unpaid taxes shown on that year’s Warrant Books. A public sale is held, at which
time successful tax buyers pay the unpaid taxes plus penalties. In each such public sale, the
collector can use any “automated means.” Unpaid taxes accrue penalties at the rate of 1.5% per
month from their due date until the date of sale. Taxpayers can redeem their property by paying
the amount paid at the sale, plus a maximum of 12% for each six-month period after the sale. If
no redemption is made within the applicable redemption period (ranging from six months to two
and a half years depending on the type and occupancy of the property) and the tax buyer files a
petition in the Circuit Court, notifying the necessary parties in accordance with the applicable law,
the tax buyer receives a deed to the property. In addition, there are miscellaneous statutory
provisions for foreclosure of tax liens.
If there is no sale of the tax lien on a parcel of property at the Annual Tax Sale, the taxes
are forfeited and the property becomes eligible to be purchased at any time thereafter at an amount
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equal to all delinquent taxes and interest accrued to the date of purchase. Redemption periods and
procedures are the same as applicable to the Annual Tax Sale.
The Scavenger Sale (the “Scavenger Sale”), like the Annual Tax Sale, is a sale of unpaid
taxes. The Scavenger Sale is held every two years on all property on which two or more years’
taxes are delinquent. The sale price of the unpaid taxes is the amount bid at such sale, which may
be less than the amount of delinquent taxes. Redemption periods vary from six months to two and
a half years depending upon the type and occupancy of the property.
TRUTH IN TAXATION LAW
Legislation known as the Truth in Taxation Law (the “Law”) limits the aggregate amount
of certain taxes which can be levied by, and extended for, a taxing district to 105% of the amount
of taxes extended in the preceding year unless specified notice, hearing and certification
requirements are met by the taxing body. The express purpose of the Law is to require published
disclosure of, and hearing upon, an intention to adopt a levy in excess of the specified levels. The
provisions of the Law do not apply to levies made to pay principal of and interest on the Bonds.
The District covenanted in the Bond Resolution that it will not take any action or fail to take any
action which would adversely affect the ability of the District to levy and collect the taxes levied
by the District for payment of principal of and interest on the Bonds. The District also covenanted
that it will comply with all present and future applicable laws to assure that such taxes will be
levied, extended, collected and deposited as provided in the Bond Resolution.
SCHOOL DISTRICT FINANCIAL PROFILE
The Illinois State Board of Education (“ISBE”) utilizes a system for assessing a school
district’s financial health referred to as the “School District Financial Profile” which replaced the
Financial Watch List and Financial Assurance and Accountability System (FAAS). This system
identifies those school districts which are moving into financial distress.
The system uses five indicators which are individually scored, placed into a category of a
four, three, two or one, with four being the best possible, and weighted in order to arrive at a
composite district financial profile. The indicators and the weights assigned to those indicators
are as follows: fund balance to revenue ratio (35%); expenditures to revenue ratio (35%); days
cash on hand (10%); percent of short-term borrowing ability remaining (10%); and percent of
long-term debt margin remaining (10%).
The scores of the weighted indicators are totaled to obtain a district’s overall score. The
highest score is 4.0 and the lowest score is 1.0. A district is then placed in one of four categories
as follows:
• Financial Recognition. A school district with a score of 3.54-4.00 is assigned to

this category, which is the best category of financial strength. These districts
require minimal or no active monitoring by ISBE unless requested by the district.
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• Financial Review. A school district with a score of 3.08-3.53 is assigned to this
category, the next highest financial strength category. These districts receive a
limited review by ISBE, but are monitored for potential downward trends. ISBE
staff also review the next year’s school budget for further negative trends.
• Financial Early Warning. A school district with a score of 2.62-3.07 is placed in

this category. ISBE monitors these districts closely and offers proactive technical
assistance, such as financial projections and cash flow analysis. These districts also
are reviewed to determine whether they meet the criteria set forth in Article 1A-8
of the School Code to be certified in financial difficulty and possibly qualify for a
Financial Oversight Panel.
• Financial Watch. A school district with a score of 1.00-2.61 is in this category, the
highest risk category. ISBE monitors these districts very closely and offers
technical assistance with, but not limited to, financial projections, cash flow
analysis, budgeting, personnel inventories and enrollment projections. These
districts are also assessed to determine if they qualify for a Financial Oversight
Panel.
For each school district, ISBE calculates an original financial profile score (the “Original
Score”) and an adjusted financial profile score (the “Adjusted Score”). The Original Score is
calculated based solely on such school district’s audited financial statements as of the close of the
most recent fiscal year. The Adjusted Score is calculated based initially on a school district’s
audited financial statements for the most recent fiscal year, with adjustments made to reflect the
impact on the Original Score of timing differences between such school district’s actual and
expected receipt of State Aid payments or evidence-based funding, as required by Section 1A-8 of
the School Code. ISBE has implemented this statutory requirement by adding in payments
expected to be received during the calculation year but not actually received until the following
fiscal year, as well as by subtracting certain State Aid payments or evidence-based funding
received during the current fiscal year but attributable to a prior fiscal year. Such adjustments may
have a varying effect on a school district’s Adjusted Score based on the amount of time by which
such State Aid payments or evidence-based funding are delayed and the accounting basis adopted
by such school district. Due to the manner in which such requirement has been implemented by
ISBE, a school district’s Adjusted Score may be different than it otherwise would have been in
certain years based on the scheduled receipt of State Aid payments or evidence-based funding.
The following table sets forth the District’s Original Scores and Adjusted Scores, as well
as the designation assigned to each score, for each of the last five fiscal years (as released by ISBE
in March of the year following the conclusion of each fiscal year):
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DESIGNATION DESIGNATION
FISCAL YEAR ORIGINAL BASED ON ADJUSTED BASED ON
(JUNE 30) SCORE ORIGINAL SCORE SCORE ADJUSTED SCORE
2018 3.70 Recognition 3.35 Review

2017 3.45 Review 3.45 Review
2016 3.35 Review 3.35 Review
2015 3.70 Recognition 3.70 Recognition
2014 3.70 Recognition 3.60 Recognition
STATE AID
GENERAL
The State provides aid to local school districts on an annual basis as part of the State’s
appropriation process. Many school districts throughout the State rely on such “State Aid” as a
significant part of their budgets. For the fiscal year ended June 30, 2019, 16.41% of the District’s
General Fund revenue came from sources at the State, including State Aid. See Exhibit C to this
Official Statement for more information concerning the breakdown of the District’s revenue
sources.
GENERAL STATE AID—EVIDENCE–BASED FUNDING MODEL
Through fiscal year 2017, general State financial aid (“General State Aid”) was allocated
to each Illinois school district based on the difference between available local resources per pupil
(which was calculated based on a number of factors, including the district’s EAV, the number of
students in attendance in the district and the district’s corporate personal property replacement tax
receipts) and a foundation level (the “Foundation Level”). The Foundation Level was an amount
established annually by the State’s budget representing the minimum level of per pupil financial
support that was to be available to provide for the basic education of each pupil.
The State appropriation for General State Aid in some fiscal years prior to fiscal year 2017
was reduced. As such, the State was not able to fully fund General State Aid and the amount each
district received was prorated in each of fiscal years 2010 through 2016. For fiscal year 2017, the
State appropriation was increased to fully fund General State Aid.
Both the Fiscal Year 2018 Budget and the Fiscal Year 2019 Budget appropriated General
State Aid in an amount $350 million greater than the appropriation for the preceding fiscal year
and require such additional funds to be distributed to school districts under an Evidence-Based
Funding Model. The Fiscal Year 2020 Budget appropriates General State Aid in the amount of
$375 million greater than the appropriation for Fiscal Year 2019 and requires such additional funds
to be distributed to school districts under the Evidence-Based Funding Model. The
Evidence-Based Funding Model provided for in Public Act 100-465 sets forth a new school
funding formula which ties individual district funding to 27 evidence-based best practices that
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certain research shows enhance student achievement in the classroom. Under the new funding
formula, ISBE will calculate an adequacy target (the “Adequacy Target”) each year for each
district based upon its unique student population, regional wage differences and best practices.
Each district will be placed in one of four tiers depending on how close the sum of its local
resources available to support education (based on certain State resources and its expected property
tax collections, its “Local Capacity Target”) and its Base Funding Minimum (as hereinafter
defined) are to its Adequacy Target; Tier One and Tier Two for those districts that are the furthest
away from their Adequacy Targets and Tier Three and Tier Four for those districts that are the
closest to (or above) their Adequacy Targets. For each school year, all State funds appropriated
for General State Aid in excess of the amount needed to fund the Base Funding Minimum for all
school districts (“New State Funds”) will be distributed to districts based on tier placement. Of
any New State Funds available, Tier One receives 50%, Tier Two receives 49%, Tier Three
receives 0.9%, and Tier Four receives 0.1%. Tier Two includes all Tier One districts for the
purpose of the allocation percentages for New State Funds.
For school year 2019-2020, ISBE notified the District that its Local Capacity Target, plus
its Base Funding Minimum, is 83.8% of its Adequacy Target and that the District has been placed
in Tier Two. For school year 2019-2020, the District will receive approximately $65,252 of New
State Funds.
Public Act 100-465 also provides that each school district will be allocated at least as much
in General State Aid in future years as it received in the most recently completed school year (such
amount being that district’s “Base Funding Minimum”). Mandated Categorical State Aid (as
hereinafter defined) received by the District in fiscal year 2017, other than Mandated Categorical
State Aid related to transportation and extraordinary special education, was included in the Base
Funding Minimum for the school year 2017-2018 (the “Initial Base Funding Minimum”). Any
New State Funds received by a district in a year become part of its Base Funding Minimum in the
following year. The Base Funding Minimum for the District for school year 2019-2020 was
$3,654,329.54. If the State appropriates insufficient funds to cover the cost of the Base Funding
Minimum, reductions will be made first to the Base Funding Minimum for all Tier 3 and Tier 4
school districts on a per pupil basis; provided, however, that such reductions may not reduce State
funding for such districts below the Initial Base Funding Minimum. If funds are still insufficient,
then further reductions are to be done on a per pupil basis for all school districts. Consequently,
reduced appropriations for General State Aid in future years could result in the District receiving
less in a future fiscal year than its Base Funding Minimum.
PROPERTY TAX RELIEF POOL FUNDS
For the purpose of encouraging high tax rate school districts to reduce property taxes,
Public Act 100-465 also established a property tax relief grant program (the “Property Tax Relief
Pool”). School districts must apply for the grant and indicate an amount of intended property tax
relief, which relief may not be greater than 1% of EAV for a unit district, 0.69% of EAV for an
elementary school district or 0.31% of EAV for a high school district, reduced, in each case, based
on the Local Capacity Target of the applicant. Property Tax Relief Pool grants will be allocated
to school districts based on each district’s percentage of the simple average operating tax rate of
all school districts of the same type (unit, elementary or high), in order of priority from highest
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percentage to lowest, until the Property Tax Relief Pool is exhausted. A school district which
receives a Property Tax Relief Pool grant is required to abate its property tax levy by the amount
of intended property tax relief for the levy year in which the grant is to be received, and the
succeeding levy year. The difference between the amount of the grant and the amount of the
abatement is based on a statutory calculation which takes into account relative Local Capacity
Targets. Pursuant to such calculation, a school district with a low Local Capacity Target will be
required to abate less than a school district with a high Local Capacity Target, assuming the amount
of Property Tax Relief Pool grants received by the school districts are the same. Property Tax
Relief Pool grants received by a school district are included in future calculations of that district’s
Base Funding Minimum, unless that district does not abate its property tax levy by the amount of
intended property tax relief as described above. Of the $375 million of New State Funds
appropriated in the Fiscal Year 2020 Budget, $50 million was allocated to the Property Tax Relief
Pool.
The District received a Property Tax Relief Pool grant for school fiscal year 2019 in the
amount of $242,794.24. As required by the terms of the grant, the District abated its property tax
levy for the tax levy year 2018 by $317,632.68. The District has again applied for a Property Tax
Relief Pool grant for school fiscal year 2020, and expects to hear the results of such application in
late January, 2020.
MANDATED CATEGORICAL STATE AID
Illinois school districts are entitled to reimbursement from the State for expenditures
incurred in providing programs and services legally required to be available to students under State
law. Such reimbursements, referred to as “Mandated Categorical State Aid,” are made to the
school district in the fiscal year following the expenditure, provided that the school district files
the paperwork necessary to inform the State of such an entitlement. From time to time, Mandated
Categorical State Aid payments from the State have been delayed and have been prorated as part
of the appropriation process, as described below.
Prior to fiscal year 2018, the School Code provided for Mandated Categorical State Aid
with respect to mandatory school programs relating to: (a) special education, (b) transportation,
(c) free and reduced breakfast and lunch, and (d) orphanage tuition. Beginning with fiscal year
2018, Mandated Categorical State Aid is no longer the source of funding for mandatory school
programs relating to special education, other than private facility tuition and transportation.
Mandated Categorical State Aid received by a district in fiscal year 2017 for special education
programming no longer available for Mandated Categorical State Aid in fiscal year 2018 is
included in the Base Funding Minimum for that district.
In addition, although school districts are entitled to reimbursement for expenditures made
under these programs, these reimbursements are subject to the State’s appropriation process. In
the event that the State does not appropriate an amount sufficient to fund fully the Mandated
Categorical State Aid owed to each school district, the total Mandated Categorical State Aid is
proportionally reduced such that each school district receives the same percentage of its Mandated
Categorical State Aid request with respect to a specific category of such aid as every other school
district.
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In past years, the State has not fully funded all Mandated Categorical State Aid payments.
Therefore, pursuant to the procedures discussed above, proportionate reductions in Mandated
Categorical State Aid payments to school districts have occurred. However, because these
programs are “mandatory” under the School Code, each school district must provide these
programs regardless of whether such school district is reimbursed by the State for the related
expenditures. No assurance can be given that the State will make appropriations in the future
sufficient to fund fully the Mandatory Categorical State Aid requirements. As such, the District’s
revenues may be impacted in the future by increases or decreases in the level of funding
appropriated by the State for Mandated Categorical State Aid.
COMPETITIVE GRANT STATE AID
The State also provides funds to school districts for expenditures incurred in providing
additional programs that are allowed, but not mandated by, the School Code. In contrast to
Mandated Categorical State Aid, such “Competitive Grant State Aid” is not guaranteed to a school
district that provides these programs. Instead, a school district applying for Competitive Grant
State Aid must compete with other school districts for the limited amount appropriated each year
by the State for such program.
Competitive Grant State Aid is allocated, after appropriation by the State, among certain
school districts selected by the State. The level of funding is annually determined separately for
each category of aid based on the State’s budget. This process does not guarantee that any funding
will be available for Competitive Grant State Aid programs, even if a school district received such
funding in a prior year. Therefore, school districts may incur expenditures with respect to certain
Competitive Grant State Aid programs without any guarantee that the State will appropriate the
money necessary to reimburse such expenditures.
PAYMENT FOR MANDATED CATEGORICAL STATE AID AND COMPETITIVE GRANT STATE AID
The State makes payments to school districts for Mandated Categorical State Aid and
Competitive Grant State Aid (together, “Categorical State Aid”) in accordance with a voucher
system involving ISBE. ISBE vouchers payments to the State on a periodic basis. The time
between vouchers varies depending on the type of Categorical State Aid in question. For example,
with respect to the categories of Mandated Categorical State Aid related to extraordinary special
education and transportation, ISBE vouchers the State for payments on a quarterly basis. With
respect to Competitive Grant State Aid, a payment schedule is established as part of the application
process, and ISBE vouchers the State for payment in accordance with this payment schedule.
Once ISBE has vouchered the State for payment, the State is required to make the
Categorical State Aid payments to the school districts. As a general matter, the State is required
to make such payments within 90 days after the end of the State’s fiscal year.
See Exhibit C for a summary of the District’s general fund revenue sources.
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RETIREMENT PLANS
The District participates in two defined benefit pension plans: (i) the Teachers’ Retirement
System of the State of Illinois (“TRS”), which provides retirement benefits to the District’s
teaching employees, and (ii) the Illinois Municipal Retirement Fund (the “IMRF” and, together
with TRS, the “Pension Plans”), which provides retirement benefits to the District’s non-teaching
employees. The District makes certain contributions to the Pension Plans on behalf of its
employees, as further described in this section. The operations of the Pension Plans, including the
contributions to be made to the Pension Plans, the benefits provided by the Pension Plans, and the
actuarial assumptions and methods employed in generating the liabilities and contributions of the
Pension Plans, are governed by the Illinois Pension Code, as amended (the “Pension Code”).
The following summarizes certain provisions of the Pension Plans and the funded status of
the Pension Plans, as more completely described in Note IV to the Audit, as hereinafter defined,
attached hereto as APPENDIX A.
BACKGROUND REGARDING PENSION PLANS
The Actuarial Valuation
The disclosures in the Audit related to the Pension Plans are based in part on the actuarial
valuations of the Pension Plans. In the actuarial valuations, the actuary for each of the Pension
Plans measures the financial position of the Pension Plan, determines the amount to be contributed
to a Pension Plan pursuant to statutory requirements, and produces information mandated by the
financial reporting standards (the “GASB Standards”) issued by the Governmental Accounting
Standards Board (“GASB”), as described below.
In producing an actuarial valuation, the actuary for the Pension Plan uses demographic data
(including employee age, salary and service credits), economic assumptions (including estimated
future salary and interest rates), and decrement assumptions (including employee turnover,
mortality and retirement rates) and employs various actuarial methods to generate the information
required to be included in such valuation.
GASB Standards
The GASB Standards provide standards for financial reporting and accounting related to
pension plans.
The GASB Standards require calculation and disclosure of a “Net Pension Liability” or
“Net Pension Asset,” which is the difference between the actuarial present value of projected
benefit payments that is attributed to past periods of employee service calculated pursuant to the
methods and assumptions set forth in the GASB Standards (referred to in such statements as the
“Total Pension Liability”) and the fair market value of the pension plan’s assets (referred to as the
“Fiduciary Net Position”).
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Furthermore, the GASB Standards employ a rate, referred to in such statements as the
“Discount Rate,” which is used to discount projected benefit payments to their actuarial present
values. The Discount Rate is a blended rate comprised of (1) a long-term expected rate of return
on a pension plan’s investments (to the extent that such assets are projected to be sufficient to pay
benefits), and (2) a tax-exempt municipal bond rate meeting certain specifications set forth in the
GASB Standards.
Finally, the GASB Standards require that the Net Pension Liability be disclosed in the notes
to the financial statements of the pension system and that a proportionate share of the Net Pension
Liability be recognized on the balance sheet of the employer, and that an expense be recognized
on the income statement of the employer.
Pension Plans Remain Governed by the Pension Code
As described above, the GASB Standards establish requirements for financial reporting
purposes. However, the Pension Plans are ultimately governed by the provisions of the Pension
Code in all respects, including, but not limited to, the amounts to be contributed by the District to
the Pension Plans in each year.
TEACHERS’ RETIREMENT SYSTEM OF THE STATE OF ILLINOIS
The District participates in TRS, which is a cost-sharing multiple-employer defined benefit

pension plan that was created by the Illinois General Assembly for the benefit of Illinois public
school teachers outside the City of Chicago. TRS members include all active non-annuitants who
are employed by a TRS-covered employer, which includes all school districts located outside of
the City of Chicago, to provide services for which teacher licensure is required.
The Illinois Pension Code sets the benefit provisions of TRS, which can only be amended
by the Illinois General Assembly. The State maintains primary responsibility for the funding of
the plan, but contributions from participating employers and members are also required. The TRS
Board of Trustees is responsible for the System’s administration.
TRS issues a publicly available comprehensive annual financial report that includes
financial statements and required supplementary information. The report may be viewed at TRS’s
website as follows: http://trs.illinois.gov/pubs/cafr.htm.
For information relating to the actuarial assumptions and methods used by TRS, including
the Discount Rate and the sensitivity of the Net Pension Liability to changes in the Discount Rate,
see Note IV to the Audit.
Employer Funding of Teachers’ Retirement System
Under the Pension Code, active members contribute 9.0% of creditable earnings to TRS.
The State makes the balance of employer contributions to the State on behalf of the District, except
for a small portion contributed by the teacher’s employer, such as the District. For the fiscal years
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ended June 30, 2017, through June 30, 2018, all statutorily required amounts contributed by the
District to TRS were as follows:
FISCAL YEAR
ENDED JUNE 30 TRS CONTRIBUTIONS
2017 $314,748
2018 161,746
______________________________
Source: The audited financial statements of the District for the years ending June 30, 2017, through June 30, 2018.
For information regarding additional contributions the District may be required to make to
TRS with respect to certain salary increases and other programs, see Note IV to the Audit.
Shift of Contributions from the State to Employers
Various proposals have been introduced into the General Assembly to shift the burden of
making certain contributions to TRS from the State to the school districts employing participants
in TRS, such as the District (each a “Cost Shifting Proposal”). Though these Cost Shifting
Proposals differ in certain respects, the most common formulation would require a school district,
such as the District, to contribute the full amount of the normal costs of its employees’ TRS
pensions, with such additional contributions being phased in over the course of several years.
Discussions and deliberations on the complex topic of pension reform remain fluid. The
District cannot predict whether, or in what form, the Cost Shifting Proposal may be introduced in
the General Assembly or ultimately be enacted into law. Furthermore, it is possible that any future
pension reform legislation that is passed by the General Assembly (including any legislation
containing the Cost Shifting Proposal) could face court challenges.
If the Cost Shifting Proposal were to become law, it may have a material adverse effect on
the finances of District. How local school districts, including the District, would pay for such shift
of contributions cannot be determined at the current time. Property taxes to pay pension costs are
capped by the Limitation Law. If such pension expenditures are not exempted from the Limitation
Law, school districts (such as the District) would have to pay such additional contributions from
revenues or reserves.
Although the Cost Shifting Proposal has not been adopted as of the date hereof, the General
Assembly approved legislation shifting a portion of the State’s contributions to TRS to individual
school districts. On July 6, 2017, the General Assembly enacted Public Act 100-0023
(“P.A. 100-23”) which, among other things, requires employers participating in TRS, such as the
District, to make certain contributions to TRS that were not required under prior law. P.A. 100-23
includes provisions for a separate set of benefits (the “New Tier Benefits”) applicable to employees
hired after the “Implementation Date,” the same being the date on which TRS authorizes new
hires to participate in the New Tier Benefits, which P.A. 100-23 directs should be “as soon as
possible” after the effective date of P.A. 100-23. Under P.A. 100-23, beginning in Fiscal Year
2018, the District will be responsible for paying the normal cost for those employees earning the
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New Tier Benefits (as well as the normal cost for certain employees hired after the Implementation
Date that elect to earn the benefits currently in place) and to amortize any unfunded liability related
thereto. Finally, P.A. 100-23 mandates that the District make an additional payment to TRS to the
extent that any employee’s salary exceeds the salary of the Governor of the State (currently
$177,412), as calculated therein.
The contributions required by P.A. 100-23 represent an increase in the District’s

contributions to TRS in comparison to prior law; however, the District is unable to predict the
timing or the degree of any such additional contributions, and as such, the District is not able to
predict whether the impact of such additional contributions on its finances will be material.
Recognition of Net Pension Liability
The GASB Standards divide the Net Pension Liability of a pension plan for which multiple
entities make a portion of the employer contribution among such contributing entities. With
respect to TRS, the District and the State each provide a portion of the employer contribution with
respect to the District’s TRS liability. As of June 30, 2018, the Net Pension Liability associated
with the District was $92,633,212, of which the District’s proportionate share was $1,332,772, and
the State’s proportionate share was $91,300,440.
ILLINOIS MUNICIPAL RETIREMENT FUND
The District also participates in the IMRF, which is a defined-benefit, agent multiple
employer pension plan that acts as a common investment and administrative agent for units of
local government and school districts in Illinois. The IMRF is established and administered under
statutes adopted by the Illinois General Assembly. The Pension Code sets the benefit provisions
of the IMRF, which can only be amended by the Illinois General Assembly.
Each employer participating in the IMRF, including the District, has an employer reserve
account with the IMRF separate and distinct from all other participating employers (the “IMRF
Account”) along with a unique employer contribution rate determined by the IMRF Board of
Trustees (the “IMRF Board”), as described below. The employees of a participating employer
receive benefits solely from such employer’s IMRF Account. Participating employers are not
responsible for funding the deficits of other participating employers.
The IMRF issues a publicly available financial report that includes financial statements
and required supplementary information which may be viewed at the IMRF’s website.
See Note IV to the Audit for additional information on the IMRF’s actuarial methods and
assumptions, including information regarding the Discount Rate and the sensitivity of the Net
Pension Liability to changes in the Discount Rate.
Contributions
Both employers and employees contribute to the IMRF. At present, employees contribute
4.50% of their salary to the IMRF, as established by statute. Employers are required to make all
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additional contributions necessary to fund the benefits provided by the IMRF to its employees.
The annual rate at which an employer must contribute to the IMRF is established by the IMRF
Board. The District’s contribution rate for calendar year 2018 was 9.15% of covered payroll.
For the fiscal years ended June 30, 2017, through June 30, 2018, the District contributed
the following amounts to IMRF:
FISCAL YEAR
ENDED JUNE 30 IMRF CONTRIBUTIONS
2017 $405,301
2018 380,106
______________________________
Source: The audited financial statements of the District for the years ending June 30, 2017, through June 30, 2018.
Measures of Financial Position
The following table presents the measures of the IMRF Account’s financial position as of
December 31, 2016, December 31, 2017, and December 31, 2018 which are presented pursuant to
the GASB Standards. The Total Pension Liability for calendar year 2018 was measured using a
discount rate of 7.25%.
FIDUCIARY NET
CALENDAR YEAR TOTAL POSITION AS A % OF
ENDED PENSION FIDUCIARY NET PENSION TOTAL PENSION
DECEMBER 31 LIABILITY NET POSITION (ASSET)/LIABILITY LIABILITY
2016 $10,671,726 $9,404,247 $1,267,479 88.12%

2017 11,021,774 10,994,309 27,465 99.75%
2018 12,447,056 10,700,145 1,746,911 85.97%
______________________________
Source: The audited financial statements of the District for the years ending June 30, 2017, through June 30, 2018 and IMRF GASB 68 Statements.
See Note IV to the Audit, and the related required supplementary information disclosures,
for a description of the IMRF, the IMRF Account, the District’s funding policy, information on
the assumptions and methods used by the Actuary, and the financial reporting information required
by the GASB Standards.
TEACHER HEALTH INSURANCE SECURITY FUND
The District participates in the Teacher Health Insurance Security Fund (the “THIS
Fund”), a cost-sharing, multiple-employer defined benefit post-employment healthcare plan that
was established by the Illinois legislature for the benefit of retired Illinois public school teachers
employed outside the city of Chicago. The THIS Fund provides medical, prescription, and
behavioral health benefits, but it does not provide vision, dental, or life insurance benefits to
annuitants of TRS.
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The State maintains primary responsibility for funding, but contributions from
participating employers and members are also required. For the fiscal year ended June 30, 2018,
the District paid $108,832 to the THIS Fund, which was 100% of the required contribution. For
more information regarding the District’s THIS Fund obligation, see Note IV to the Audit.
BOND RATINGS
Moody’s has assigned a credit rating of “Aa3.” The rating reflects only the view Moody’s
and any explanation of the significance of such rating may be obtained from Moody’s. Certain
information concerning the Bonds and the District not included in this Official Statement may
have been furnished to Moody’s by the District. There is no assurance that the rating will be
maintained for any given period of time or that such rating may not be changed by Moody’s if, in
such rating agency’s judgment, circumstances so warrant. Any downward change in or withdrawal
of the rating may have an adverse effect on the market price of the Bonds.
Except as may be required by the Undertaking described below under the heading
“CONTINUING DISCLOSURE,” neither the District nor the Underwriter undertakes responsibility to
bring to the attention of the owners of the Bonds any proposed change in or withdrawal of the
rating or to oppose any such revision or withdrawal.
TAX TREATMENT
Interest on the Bonds is includible in 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. Holders of the Bonds 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.
The issue price for original issue discount (as further discussed below) and market discount
purposes (the “OID Issue Price”) for each maturity of the Bonds is the price at which a substantial
amount of such maturity of the Bonds is first sold to the public (excluding bond houses and brokers
and similar persons or organizations acting in the capacity of underwriters, placement agents or
wholesalers). The OID Issue Price of a maturity of the Bonds may be different from the price set
forth, or the price corresponding to the yield set forth, on the inside cover page hereof.
Interest on the Bonds is not exempt from present State of Illinois income taxes. Ownership
of the Bonds may result in other state and local tax consequences to certain taxpayers. Bond
Counsel expresses no opinion regarding any such collateral consequences arising with respect to
the Bonds. Prospective purchasers of the Bonds should consult their tax advisors regarding the
applicability of any such state and local taxes.
CONTINUING DISCLOSURE
The 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
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provide notice of certain events to the Municipal Securities Rulemaking Board (the “MSRB”)
pursuant to the requirements of the Rule. No person, other than the District, has undertaken, or is
otherwise expected, to provide continuing disclosure with respect to the Bonds. The information
to be provided on an annual basis, the events which will be noticed on an occurrence basis and a
statement of other terms of the Undertaking, including termination, amendment and remedies, are
set forth in the form of the Undertaking, attached hereto as APPENDIX C.
The District failed to file its audited financial statements and annual financial information
within the time periods required pursuant to a previous continuing disclosure undertaking for fiscal
years ending June 30, 2015, June 30, 2016 and June 30, 2017. Such information has since been
filed on the Electronic Municipal Market Access (“EMMA”) system. A failure by the District to
comply with the Undertaking will not constitute a default under the Bond Resolution and beneficial
owners of the Bonds are limited to the remedies described in the Undertaking. The District must
report any failure to comply with the Undertaking in accordance with the Rule. Any broker, dealer
or municipal securities dealer must consider such report before recommending the purchase or sale
of the Bonds in the secondary market. Consequently, such a failure may adversely affect the
transferability and liquidity of the Bonds and their market price.
AUDITED FINANCIAL STATEMENTS
The audited financial statements of the District for the fiscal year ended June 30, 2019 (the
“Audit”), contained in Appendix A, including the independent auditor’s report accompanying the
Audit, have been prepared by Mueller & Co., LLP, Orland Park, Illinois (the “Auditor”), and
approved by formal action of the Board. The District has not requested the Auditor to update
information contained in the Audit nor has the District requested that the Auditor consent to the
use of the Audit in this Official Statement. Other than as expressly set forth in this Official
Statement, the financial information contained in the Audit has not been updated since the date of
the Audit. The inclusion of the Audit in this Official Statement in and of itself is not intended to
demonstrate the fiscal condition of the District since the date of the Audit. Specific questions or
inquiries relating to the financial information of the District since the date of the Audit should be
directed to the Chief School Business Official of the District.
BOOK-ENTRY ONLY SYSTEM
DTC will act as securities depository for the Bonds. The Bonds will be issued as
fully-registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or
such other name as may be requested by an authorized representative of DTC. One fully-registered
Bond certificate will be issued for each maturity of the Bonds, in the aggregate principal amount
of such maturity, and will be deposited with DTC.
DTC, the world’s largest securities depository, is a limited-purpose trust company

organized under the New York Banking Law, a “banking organization” within the meaning of the
New York Banking Law, a member of the Federal Reserve System, a “clearing corporation” within
the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered
pursuant to the provisions of Section 17A of the Exchange Act. DTC holds and provides asset
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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 a S&P rating of “AA+”. The DTC Rules applicable to its Participants
are on file with the Commission. More information about DTC can be found at www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants,
which will receive a credit for the Bonds on DTC’s records. The ownership interest of each actual
purchaser of each Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect
Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their
purchase. Beneficial Owners are, however, expected to receive written confirmations providing
details of the transaction, as well as periodic statements of their holdings, from the Direct or
Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of
ownership interests in the Bonds are to be accomplished by entries made on the books of Direct
and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not
receive certificates representing their ownership interests in Bonds, except in the event that use of
the book-entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are
registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be
requested by an authorized representative of DTC. The deposit of Bonds with DTC and their
registration in the name of Cede & Co. or such other DTC nominee do not effect any change in
beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds;
DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds
are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants
will remain responsible for keeping account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct

Participants to Indirect Participants, and by Direct Participants and Indirect Participants to
Beneficial Owners will be governed by arrangements among them, subject to any statutory or
regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may
wish to take certain steps to augment transmission to them of notices of significant events with
respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the
Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the
nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial
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Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to
the Registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are
being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct
Participant in such issue to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with
respect to the Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI
Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the District as soon as
possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting
rights to those Direct Participants to whose accounts the Bonds are credited on the record date
(identified in a listing attached to the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the Bonds will be made to
Cede & Co., or such other nominee as may be requested by an authorized representative of DTC.
DTC’s practice is to credit Direct Participants’ accounts upon DTC’s receipt of funds and
corresponding detailed information from the District or Registrar, on payable date in accordance
with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial
Owners will be governed by standing instructions and customary practices, as is the case with
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 Registrar, or the District, subject to
any statutory or regulatory requirements as may be in effect from time to time. Payment of
redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee
as may be requested by an authorized representative of DTC) is the responsibility of the District
or the Registrar, disbursement of such payments to Direct Participants will be the responsibility of
DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of
Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Bonds at any
time by giving reasonable notice to the District or the Registrar. Under such circumstances, in the
event that a successor depository is not obtained, Bond certificates are required to be printed and
delivered.
The District may decide to discontinue use of the system of book-entry transfers through
DTC (or a successor securities depository). In that event, Bond certificates will be printed and
delivered to DTC.
The information in this section concerning DTC and DTC’s book-entry system has been
obtained from DTC, and the District takes no responsibility for the accuracy thereof.
The District will have no responsibility or obligation to any Securities Depository, any
Participants in the Book-Entry System or the Beneficial Owners with respect to (a) the accuracy
of any records maintained by the Securities Depository or any Participant; (b) the payment by the
Securities Depository or by any Participant of any amount due to any Beneficial Owner in respect
of the principal amount or redemption price of, or interest on, any Bonds; (c) the delivery of any
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notice by the Securities Depository or any Participant; (d) the selection of the Beneficial Owners
to receive payment in the event of any partial redemption of the Bonds; or (e) any other action
taken by the Securities Depository or any Participant.
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 (“Chapman
and Cutler”), Bond Counsel, who has been retained by, and acts as, Bond Counsel to the District.
Chapman and Cutler has also been retained by the District to serve as Disclosure Counsel to the
District with respect to the Bonds. Although as Disclosure Counsel to the District, Chapman and
Cutler has assisted the District with certain disclosure matters, Chapman and Cutler has not
undertaken to independently verify the accuracy, completeness or fairness of any of the statements
contained in this Official Statement or other offering material related to the Bonds and does not
guarantee the accuracy, completeness or fairness of such information. Chapman and Cutler’s
engagement as Disclosure Counsel was undertaken solely at the request and for the benefit of the
District, to assist it in discharging its responsibility with respect to this Official Statement, and not
for the benefit of any other person (including any person purchasing Bonds from the Underwriter),
and did not include any obligation to establish or confirm factual matters, forecasts, projections,
estimates or any other financial or economic information in connection therewith. Further,
Chapman and Cutler makes no representation as to the suitability of the Bonds for investment by
any investor. Burke Burns & Pinelli, Ltd., Chicago, Illinois, will pass on certain matters for the
Underwriter.
NO LITIGATION
No litigation is now pending or threatened restraining the issuance, sale, execution or

delivery of the Bonds, or in any way contesting or affecting the validity or enforceability of the
Bonds or any proceedings of the District taken with respect to the issuance or sale thereof. A
certificate to this effect will be delivered by the District with the other customary closing papers
when the Bonds are delivered.
UNDERWRITING
Pursuant to the terms of a Bond Purchase Agreement (the “Agreement”) between the
District and the Underwriter, the Underwriter has agreed to purchase the Bonds at an aggregate
purchase price of $19,666,350.00. The purchase price will produce an underwriting spread of
1.00% of principal amount if all Bonds are sold at the initial offering prices. The Agreement
provides that the obligation of the Underwriter is subject to certain conditions precedent and that
the Underwriter 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 different 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 Underwriter.
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AUTHORIZATION
This Official Statement has been approved by the District for distribution to prospective
purchasers of the Bonds. The Board, acting through authorized officers, will provide to the
Underwriter at the time of delivery of the Bonds, a certificate confirming that, to the best of its
knowledge and belief, this Official Statement, together with any supplements thereto, as of the
date hereof, and at the time of delivery of the Bonds, was true and correct in all material respects
and did not at any time contain an untrue statement of a material fact or omit to state a material
fact required to be stated where necessary to make the statements therein in light of the
circumstances under which they were made, not misleading.
/s/ Dr. Demetria Brown

Chief School Business Official
School District Number 159,
February 5, 2020
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EXHIBITS
Exhibit A shows the District’s recent financial history. Exhibit B provides information on the District’s 2020 budget. Exhibit C
provides information on the general fund revenue sources of the District.
EXHIBIT A — COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE, FISCAL YEARS ENDED JUNE 30, 2015-2019
TRANSPORT- CAPITAL WORKING
EDUCATIONAL* O&M DEBT SERVICE ATION IMRF PROJECTS CASH TORT FIRE TOTAL
Beginning Balance $ 9,299,079 $ (105,767) $1,066,137 $ 4,078,801 $1,454,416 $(1,041,327) $1,669,991 $ 180,302 $1,160,826 $17,762,458
Revenues 24,144,869 11,268,660 3,235,757 4,417,737 1,594,857 0 171,653 1,662,973 369,482 46,865,988
Expenditures 26,226,846 3,430,151 3,261,919 1,807,312 893,513 0 0 397,839 0 36,017,580
Net Transfers 4,000,000 (1,100,000) 0 (4,000,000) 0 1,100,000 0 0 0 0
Other Sources (Uses) 0 0 0 0 0 0 0 0 0 0
Ending Balance, 6/30/15 $11,217,102 $ 6,632,742 $1,039,975 $ 2,689,226 $2,155,760 $ 58,673 $1,841,644 $1,445,436 $1,530,308 $28,610,866
Beginning Balance $11,217,102 $ 6,632,742 $1,039,975 $ 2,689,226 $2,155,760 $ 58,673 $1,841,644 $1,445,436 $1,530,308 $28,610,866
Revenues 29,248,557 1,940,224 3,557,525 5,479,605 1,769,294 6,242 171,929 1,461,209 367,860 44,002,445
Expenditures 31,788,475 3,158,990 3,448,350 2,425,387 889,871 3,213,571 0 252,505 0 45,177,149
Net Transfers 0 (3,200,000) 0 0 0 3,200,000 0 0 0 0
Ending Balance, 6/30/16 $ 8,677,184 $ 2,213,976 $1,149,150 $ 5,743,444 $3,035,183 $ 51,344 $2,013,573 $2,654,140 $1,898,168 $27,436,162
Beginning Balance $ 8,677,184 $ 2,213,976 $1,149,150 $ 5,743,444 $3,035,183 $ 51,344 $2,013,573 $2,654,140 $1,898,168 $27,436,162
Revenues 25,118,205 1,979,524 3,587,973 4,857,005 1,803,611 402,348 170,180 1,454,254 369,020 39,742,120
Expenditures 28,995,938 3,202,903 3,645,750 2,436,822 899,058 1,358,238 0 193,696 0 40,732,405
Net Transfers 0 0 0 0 0 0 0 0 0 0
Ending Balance, 6/30/17 $ 4,799,451 $ 990,597 $1,091,373 $ 8,163,627 $3,939,736 $ (904,546) $2,183,753 $3,914,698 $2,267,188 $26,445,877
Beginning Balance $ 4,799,451 $ 990,597 $1,091,373 $ 8,163,627 $3,939,736 $ (904,546) $2,183,753 $3,914,698 $2,267,188 $26,445,877
Revenues 30,353,441 1,878,618 3,580,701 3,538,509 1,695,291 7,358 200,278 719,104 193,856 42,167,156
Expenditures 30,080,915 3,215,096 3,754,541 2,561,715 856,274 0 0 178,777 0 40,647,318
Net Transfers 2,000,000 1,600,000 0 (5,000,000) 0 1,400,000 0 0 0 0
Ending Balance, 6/30/18 $ 7,071,977 $ 1,254,119 $ 917,533 $ 4,140,421 $4,778,753 $ 502,812 $2,384,031 $4,455,025 $2,461,044 $27,965,715
Beginning Balance $ 7,071,977 $ 1,254,119 $ 917,533 $ 4,140,421 $4,778,753 $ 502,812 $2,384,031 $4,455,025 $2,461,044 $27,965,715
Revenues 28,810,952 1,937,851 3,672,238 2,184,714 1,309,703 10,118 173,345 28,867 38,199 38,165,987
Expenditures 24,526,904 3,418,918 3,851,725 2,613,421 888,416 9,845 0 285,387 0 35,594,616
Net Transfers 440,000 0 0 0 0 0 0 (440,000) 0 0
Ending Balance, 6/30/19
$11,796,025 ($226,948) $738,046 $3,711,715 $5,279,030 $503,086 $2,557,376 $3,825,276 $2,536,693 $30,574,698
______________________________
Source: The annual financial reports of the District for the years ending June 30, 2015-2018 and unaudited financial statements for fiscal year ended June 30, 2019.
* Excludes “on- behalf” payments.
EXHIBIT B — BUDGET, FISCAL YEAR ENDING JUNE 30, 2020
CAPITAL WORKING
EDUCATIONAL* O&M DEBT SERVICE TRANSPORTATION IMRF PROJECTS CASH TORT FIRE TOTAL
Est. Beginning Balance 7/1/19 $11,650,424 $ 0 $ 738,045 $3,711,715 $5,279,030 $503,086 $2,330,429 $3,825,276 $2,536,693 $30,574,698
Revenues 27,613,949 4,108,332 3,880,369 1,973,595 1,227,727 0 187,121 50,000 45,000 39,086,093
Expenditures 25,613,231 3,389,000 4,047,500 2,795,000 903,450 10,000 0 100,000 1,873,000 38,731,181
Est. Ending Balance, 6/30/20 $13,651,142 $ 719,332 $ 570,914 $2,890,310 $5,603,307 $493,086 $2,517,550 $3,775,276 $ 708,693 $30,929,610
______________________________
Source: Official Budget for the District for the year ending June 30, 2020. Please note that the beginning fund balance represents an estimate by the District at the time the budget was produced. As
such, the beginning fund balance may not match the ending fund balances for the year ended June 30, 2019, due to timing.
* Excludes "On-Behalf" Payments.
EXHIBIT C — GENERAL FUND REVENUE SOURCES,
FISCAL YEARS ENDED JUNE 30, 2015-2019
YEAR YEAR YEAR YEAR YEAR

ENDED ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2015 2016 2017 2018 2019
Local Sources 53.52% 73.24% 74.41% 73.22% 78.27%

State Sources 41.30% 17.30% 17.56% 19.52% 16.41%
Federal Sources 5.18% 9.46% 8.03% 7.26% 5.32%
TOTAL 100.00% 100.00% 100.00% 100.00% 100.00%
______________________________
Source: The annual financial reports of the District for the years ending June 30, 2015-2019. Information for fiscal year June 30, 2019 is unaudited.
Includes the Educational Fund and the Operations and Maintenance Fund. Excludes "On-Behalf" Payments..
APPENDIX A
AUDITED FINANCIAL STATEMENTS OF THE

DISTRICT FOR THE FISCAL YEAR ENDED JUNE 30, 2019
MllELLER & Co, LLP
Certified Public Accountants – Business & Financial Advisors
ELEMENTARY SCHOOL DISTRICT 159

ASSURANCE
MATTESON, ILLINOIS
ANNUAL FINANCIAL REPORT
YEAR ENDED JUNE 30, 2019
MUELLER
Elgin/Orland Park/Chicago Report issued by:
www.muellercpa.com Dr. Mable Alfred
847.888.8600 Phone Superintendentr. Mable Alfred
847.888.0635 Fax Superintendent
CONTENTS
Page
- --
INTRODUCTORY SECTION:
Board of Education Members and Officers i
FINANCIAL SECTION:
Independent Auditor's Report ii - iv
Management's Discussion and Analysis v - xi
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position - Modified Cash Basis 1
Statement of Activities - Modified Cash Basis 2
Fund Financial Statements:
Balance Sheet - Modified Cash Basis - Governmental Funds 3-4
Reconciliation of Fund Balances - Total Governmental Funds to Net Position

of Governmental Activities 5
Statement of Revenues, Expenditures and Changes in Fund Balances -

Modified Cash Basis - Governmental Funds 6-7
Reconciliation of the Net Change in Fund Balances - Total Governmental

Funds to the Change in Net Position of Governmental Activities 8
Statement of Fiduciary Assets and Liabilities - Modified Cash Basis -

Student Activity Agency Fund 9
Notes to Basic Financial Statements 10 - 29

CONTENTS
Page
- --
Combining and Individual Fund Financial Statements and Schedules:
Major Governmental Funds:
General Fund:
Combining Schedule of Balance Sheet Accounts - Modified Cash Basis 30 - 31
Combining Schedule of Revenues, Expenditures and Changes in Fund

Balances - Modified Cash Basis 32 - 35
Educational Fund:
Balance Sheet - Modified Cash Basis 36
Schedule of Revenues, Expenditures and Changes in Fund Balances -

Modified Cash Basis - Budget and Actual 37 - 38
Operations and Maintenance Fund:

Modified Cash Basis - Budget and Actual 40
Tort Fund:

Working Cash Fund:
Schedule of Revenues and Changes in Fund Balances - Modified Cash

Basis - Budget and Actual 44
CONTENTS
Page
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Capital Projects Fund:
Schedule of Revenues, Expenditures and Changes in Fund Balances

(Deficit) - Modified Cash Basis - Budget and Actual 46
Special Revenue Funds:
Transportation Fund:

Municipal Retirement/Social Security Fund:

Nonmajor Governmental Funds:
Combining Balance Sheet - Modified Cash Basis - Nonmajor Governmental

Funds 51
Combining Statement of Revenues, Expenditures and Changes in Fund

Balances - Modified Cash Basis - Nonmajor Governmental Funds 52
Fire Prevention and Safety Fund:

CONTENTS
Page
- --
Debt Service Fund:
Debt Services Fund:

Fiduciary Fund:
Student Activity Agency Fund:
Schedule of Changes in Fiduciary Assets and Liabilities - Modified Cash

Basis 57
Supplementary Information:
Schedule of Expenditures - Modified Cash Basis - Actual and Budget 58 - 67
OTHER INFORMATION SECTION:
Employee Retirement Plan Information:
Teachers' Retirement System of the State of Illinois 68 - 69
Illinois Municipal Retirement Fund 70
Teacher Health Insurance Security Fund 71
SINGLE AUDIT SECTION:
Independent Auditor's Report on Internal Control over Financial Reporting and on

Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 72 - 73
CONTENTS
Page
- --
Schedule of Expenditures of Federal Awards:
Independent Auditor's Report on Compliance for Each Major Program and on

Internal Control over Compliance Required by the Uniform Guidance 74 - 76
Schedule of Expenditures of Federal Awards 77 - 78
Notes to Schedule of Expenditures of Federal Awards 79
Schedule of Findings and Questioned Costs 80 - 94
Corrective Action Plan 95 - 97

INTRODUCTORY SECTION
BOARD OF EDUCATION MEMBERS AND OFFICERS
JUNE 30, 2019
Dr. William Mc Clinton President
Carolyn Palmer Vice President
Bernice Brown Secretary
Regina Edgecombe Member
Debra Ellis Member
Sharee Morton Member
Carolyn Owens Member
Dr. Mable Alfred Superintendent
i
FINANCIAL SECTION
14300 Ravinia Avenue, Suite 200 ■ Orland Park, Illinois ■ 60462
Ph: 708.349.6999 ■ Fax: 708.349.6639 ■ www.muellercpa.com
INDEPENDENT AUDITOR'S REPORT
To the Superintendent of Schools and Board of Education

Elementary School District 159
Matteson, Illinois
Report on the Financial Statements
We have audited the accompanying modified cash basis financial statements of the governmental
activities, each major fund, and the aggregate remaining fund information of Elementary School District
159 as of and for the year ended June 30, 2019, and the related notes to the financial statements, which
collectively comprise the District's basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with the modified cash basis of accounting described in Note I; this includes determining that
the modified cash basis of accounting is an acceptable basis for the preparation of the financial statements
in the circumstances. Management is also responsible for the design, implementation, and maintenance of
internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
ii
Certified Public Accountants ■ Business & Financial Advisors
Offices in Elgin, Orland Park, & Chicago
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective modified cash basis financial position of the governmental activities, each major fund, and the
aggregate remaining fund information of Elementary School District 159 as of June 30, 2019, and the
respective changes in modified cash basis financial position thereof for the year then ended in accordance
with the modified cash basis of accounting described in Note I.
Basis of Accounting
We draw attention to Note I of the financial statements, which describes the basis of accounting. The
financial statements are prepared on the modified cash basis of accounting, which is a basis of accounting
other than accounting principles generally accepted in the United States of America. Our opinions are not
modified with respect to this matter.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise Elementary School District 159’s basic financial statements. The accompanying supplementary
information (combining and individual fund financial statements and schedules and schedule of
expenditures) and other information (introductory section, management's discussion and analysis, and
other information section) are presented for purposes of additional analysis and are not a required part of
the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of
additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not
a required part of the basic financial statements.
The combining and individual fund financial statements and schedules, schedule of expenditures, and
schedule of expenditures of federal awards are the responsibility of management and were derived from,
and relate directly to, the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the combining
and individual fund financial statements and schedules, schedule of expenditures, and schedule of
expenditures of federal awards are fairly stated in all material respects in relation to the basic financial
statements as a whole.
The introductory section, management's discussion and analysis, and other information section have not
been subjected to the auditing procedures applied in the audit of the basic financial statements, and
accordingly, we do not express an opinion or provide any assurance on them.
iii
We also have previously audited, in accordance with auditing standards generally accepted in the United
States of America, Elementary School District 159's basic financial statements for the year ended June 30,
2018, which are not presented with the accompanying financial statements and we expressed unmodified
opinions on the respective financial statements of the governmental activities, each major fund, and the
aggregate remaining fund information. That audit was conducted for the purpose of forming opinions on
the financial statements that collectively comprise Elementary School District 159's basic financial
statements as a whole. The individual fund financial statements and schedules for the year ended June 30,
2018 are presented for purposes of additional analysis and are not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the June 30, 2018 basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of those
basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the June 30,
2018 individual fund financial statements and schedules are fairly stated in all material respects in relation
to the basic financial statements from which they have been derived.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 30,
2020, on our consideration of Elementary School District 159’s internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is solely to describe the scope of our testing of
internal control over financial reporting and compliance and the results of that testing, and not to provide
an opinion on the effectiveness of Elementary School District 159's internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering Elementary School District 159’s internal control over
financial reporting and compliance.

January 30, 2020
iv
MANAGEMENT'S DISCUSSION AND ANALYSIS
MANAGEMENT'S DISCUSSION AND ANALYSIS
as of and for the fiscal year ended June 30, 2019
As management of Elementary School District 159 (the District), we offer readers of the District's
Annual Financial Report this narrative and analysis of the financial activities ofthe District for the fiscal
year ended June 30, 2019.
Financial Highlights
• The District's net position at the close of the fiscal year was $32,796,845.
• Governmental activities had an unrestricted net position of $4,822,510. The balance of net
position is invested in capital assets or restricted for various purposes, and therefore is not
available for funding general activities.
• The total net position of the District increased by $3,415,557 during fiscal year 2019. This was
primarily due to an increase in earnings on investments, increases in prope11y tax revenues due
to increases in EAV that were a result of reassessments across the area, and slight increases in
state grant assistance under the Evidence Based Funding formula.
• Fund balance of the District's governmental funds increased by $2,767,390, resulting in an

ending fund balance of $30,733,105. As previously mentioned, these increases are primarily
attributable to increased earnings on investments, increases in property tax revenues due to
increases in EA V that were a result of reassessments across the area, and increases in state grant
assistance.
• During the current fiscal year, the fund balance in the District's General Fund increased by
$2,717,513. This was due primarily to the receipt of greater than anticipated revenues in the
District's Educational Fund due to the enactment of Public Act 100-465, which removed the
specific rate limit for the Educational Fund levy for all school districts subject to the Property
Tax Extension Limitation Act (also known as PTELL or the "tax cap").
Overview of the Financial Statements
Management's discussion and analysis is intended to serve as an introduction to the District's basic
financial statements. The basic financial statements presented on pages 1 - 29 are comprised of three
components: 1) Government-wide financial statements, 2) Fund financial statements, and 3) Notes to
basic financial statements. This report also contains other supplementary information in addition to the
basic financial statements themselves.
Government-wide Financial Statements
The government-wide financial statements are designed to provide the reader of the District's Annual
Financial Report with a broad overview of the financial activities in a manner similar to a private sector
business. The government-wide financial statements include the statement of net position - modified
cash basis and the statement of activities - modified cash basis.
The statement of net position- modified cash basis presents information about all of the District's assets
and liabilities as reported using the modified cash basis of accounting. The difference between assets
V
and liabilities is reported as net position. Over time, changes in net position may serve as a useful
indicator of whether the financial position of the District is improving or deteriorating.
The statement of activities - modified cash basis presents info1mation showing how the net position of
the District changed during the current fiscal year. Changes in net position are recorded in the statement
of activities using the modified cash basis of accounting.
Both of the government-wide financial statements distinguish functions of the District that are supported
by taxes and intergovernmental revenues (governmental activities). Governmental activities consolidate
governmental funds, including general, special revenue, debt service and capital projects funds.
The government-wide financial statements can be found on pages 1 - 2 of this report.
Fund Financial Statements
Fund financial statements are designed to demonstrate compliance with finance-related requirements.
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific objectives. Fund financial statements for the District include governmental and
fiduciary funds.
Governmental Funds. Governmental funds account for essentially the same information reported in the
governmental activities of the government-wide financial statements. However, unlike the government-
wide statements, the governmental fund financial statements focus on near-term financial resources and
fund balances. Such information may be useful in evaluating the financing requirements in the near term.
Since the governmental funds and the governmental activities report information using the same
functions, it is useful to compare the information presented. Because the focus of each report differs,
reconciliation is provided in the fund financial statements to assist the reader in comparing the near-term
requirements with the long-term needs.
The District maintains six different governmental funds. The General, Capital Projects, Transportation,
and Municipal Retirement/Social Security Funds are considered to be major funds. They are presented
separately in the fund financial statements with the remaining nonmajor governmental funds labeled as
"Nonmajor Governmental Funds". Individual fund information for the nonmajor funds is presented in
the combining and individual fund financial statements and schedules section of this report.
The District adopts an annual appropriated budget for each of the governmental funds. Governmental
fund budgetary comparisons are reported in the combining and individual fund financial statements and
schedules section of this report.
The basic governmental fund financial statements can be found on pages 3 - 8 of this report.
Fiduciary Fund. Fiduciary funds are used to account for resources held for the benefit of parties outside
of the District. Fiduciary funds are not reflected in the government-wide financial statements because
the resources of those funds are not available to support the District's own programs.
The fiduciary fund utilized by the District is the Student Activity Fund.
The basic fiduciary fund financial statement can be found on page 9 of this report.
VI
Notes to Basic Financial Statements
The notes to basic financial statements provide additional infonnation that is essential to a full
understanding of the data provided in the basic financial statements. The notes can be found on pages
10 - 29 of this report.
Government-wide Financial Analysis
The assets of the District are classified as current assets and capital assets. Cash and investments are
current assets. These assets are available to provide resources for the near-term operations ofthe District.
Capital assets are used in the operations of the District. These are land, buildings and improvements,
and equipment. Capital assets are discussed in greater detail in the section titled "Capital Assets and
Debt Administration" elsewhere in this analysis.
The assets of the District exceed liabilities by $32,796,845 with an unrestricted balance of $4,822,510.
Total net position of the District does not include internal balances.
The District's investment in capital assets of $14,268,062 represents 44 percent of the District's net
position.

Net Position - Modified Cash Basis
as of June 30, 2019 and 2018
Assets:
Current and other assets $ 30,733,105 $ 27,965,715
Capital assets 27,434,248 28,590.311
Total assets 58,167,353 56,556,026
Deferred Ouiflows of Resources:

Unamortized loss on refunding 2,087,033 2,504,439
Liabilities:
Noncurrent liabilities:
3,922,852 3,734,293
Due within one year
Due in more than one year 23,534,689 25,944,884
Total liabilities 27,457,541 29,679,177
Net position:
Net investment in capital assets 14,268,062 13,650,884
Restricted 13,706,273 14,627,613
Unrestricted 4.822.510 1,102.791
Total net position $ 32,796,845 $ 29,381 ,288
VII
Government-wide Activities
Governmental activities increased the net position of the District by $3,415.557.

Changes in Net Position - Modified Cash Basis
for the fiscal years ended June 30, 2019 and 2018
Revenues:
Program revenues:
Charges for services $ 158,851 $ 194,386
Operating grants and contributions 13,377,393 10,315.642
General revenues:
Property taxes 28,322,377 27,007,712
Personal property replacement taxes 687,556 631,444
Evidence based funding/General State Aid 3,666,772 3,375,168
Investment earnings 704,015 447,281
Other income 174 726 193 231
Total revenues 47 091 690 42.164.864
Expenses;
Governmental activities:
Instructional 25,972,475 23,473,4 l 7
Pupil support 1,583,678 1,635,403
Other support 9,885,196 9,175,616
Transportation 2,613,419 2,561,715
Administration 1,575,595 1,405,737
Interest and fees 2.045.770 1,888,632
Total expenses 43,676,133 40,140,520
Increase in net position 3,415,557 2,024,344
Net position at beginning of year 29 381 288 27,356.944
Net position at end of year $ 32 796 845 $ 29 381 288
Key elements of the increase in net position for governmental activities are as follows:
• The increase in net position was $1,391,213 more than the increase seen in the prior year. This
was primarily due to an increase in earnings on investments, increases in property tax revenues
due to increases in EAV that were the result of reassessments across the area, as well as slight
increases in state grant assistance under the Evidenced Based Funding formula.
• Instructional expenditures increased by $2,499.058. This increase is due primarily to an increase

in the state on-behalf contributions to TRS of $3,165,950, which were slightly offset by
Vlll
reductions in salary and employee benefit costs as a result of the recent retirement of the
District's more senior teaching staff.
Financial Analysis of the District's Funds
As noted earlier, the District uses fund accounting to ensure and demonstrate compliance with finance-
related legal requirements.
The focus of the District's governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing the District's financing
requirements. In pa1ticular, unassigned fund balance may serve as a useful measure of a government's
net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the District's governmental funds reported a combined ending
fund balance of $30,733,105, an increase of $2,767,390 compared with the prior year. Most of these
increases are attributable to increases in property tax revenues due to increases in EA V that were a result
of reassessments across the area and increases in state grant assistance, as discussed earlier.
The fund balance for the District at the end of the fiscal year included unassigned fund balance in the
General Fund of $12,729,879. The remaining fund balance is reflected as assigned or restricted because
it has been allocated l) for transportation needs, 2) for construction projects, 3) for debt service costs,
and 4) for municipal retirement costs.
The General Fund is the primary operating fund of the District. As a measure of the General Fund's
liquidity, it may be useful to compare unassigned fund balance to total fund expenditures. Actual
expenditures of the General Fund amounted to $36,962,621. Unassigned fund balance represents 34.4
percent of expenditures.
General Fund Budgetary Highlights
Actual expenditures of the General Fund, excluding on behalf payments, were $1,067,702, or 3.6
percent, lower than the budgeted expenditures for the year ended June 30, 2019. This reduction was
mainly due to reductions in salaries and employee benefits costs for instructional staff.
Actual revenues of the General Fund, excluding on behalf amounts, were $402,231, or 1.3 percent,
higher than the budgeted revenues for the year ended June 30, 2019. This was mainly due to increases
in local property tax revenues as well as slight increases in state grant assistance under the Evidence
Based Funding formula; however, reductions in the Early Childhood Block Grant for FY 2019 resulted
in lower than anticipated grants-in-aid state revenues, which reduced overall state grant assistance.
Capital Assets and Debt Administration
Capital Assets. The District's investment in capital assets for its governmental activities as of June 30,
2019 amounts $27,434,248 (net of accumulated depreciation). This investment in capital assets included
land, buildings and improvements, and equipment. The District's investment in capital assets decreased
by $1,156,063 from the prior fiscal year. This is the amount by which depreciation exceeded capitalized
expenditures in the current period. Capital asset additions for the current fiscal year were $230,681 and
were comprised of recent facility improvements, including upgraded flooring and office furnishings at
the District's Administration Center.
ix
Capital Assets (net of accumulated depreciation)
as of June 30, 2019 and 2018
Government-wide
2019 2018
Land $ 2,074,653 $ 2,074,653
Depreciable buildings, property and equipment, net 25,359,595 26,515,658
Total capital assets $ 27,434.248 $ 28,590,3 11
Additional information on the District's capital assets can be found in the notes to basic financial
statements.
Long-lerm Liabilities. At June 30, 2019, the District had long-term liabilities of $27,457,541. This is
from Capital Appreciation Bonds issued in 2004 and 2007 to fund capital improvements to the District's
facilities.
Additional information on the District's long-term liabilities can be found in the notes to basic financial
statements.
Economic Factors and Next Year's Budget
At the time these financial statements were prepared and audited, the District was unaware of any
existing circumstances that could significantly affect its financial health in the future.
Overall, the District's financial condition remains relatively strong. The District anticipates several new
commercial property developments to be constructed within the District's taxing boundaries in the
upcoming year. Given the District's heavy reliance on local property tax revenues to fund its operations,
the new property growth should allow the District to realize an increase in overall local property tax
revenues in the near term as the new commercial developments are completed. However, the District
also remains cognizant of resident sensitivity to property taxes, and is continuing to look for strategic
opportunities to lessen the tax burden for all taxpayers over the next fiscal year.
The District continues to be dependent on local revenue sources. For fiscal year 2019, 78% of all
revenue, excluding on behalfrevenue, was from local sources; 74% was from property taxes alone. The
Property Tax Extension Limitation Law (PTELL) was added in for the 1994 levy year. The law was
designed to limit the increases in property tax extensions (total taxes billed) for non-home rule taxing
districts.
Although the law is commonly referred to as "tax caps," use of this phrase can be misleading. The
PTELL does not ''cap" either individual property tax bills or individual property assessments. Instead,
the PTELL allows a taxing district to receive a limited inflationary increase in tax extensions on existing
property, plus an additional amount for new construction.
The Consumer Price lndex (CPI) used to determine the 2019 tax levy came in at 1.9%, slightly lower
this year than last year's 2.1 %. The District is now a Tier 11 district under the new Evidence Based
X
Funding Model adopted by the state of Illinois. The Tier 11 designation means the District will see more
in the way of new state dollars for FY2021.
The District is currently in the process of refunding its 2007 bond issuance and based on conversation
with Moody's Investors Services, Inc., the District will likely continue to maintain its S&P bond rating
in the high "A" investment grade bond rating category. A higher rating means paying lower interest,
which in turn allows more dollars available for our classrooms.
The Illinois State Board of Education system for assessing a school district's financial health is called
the Financial Profile. The District has received a 3.7 score from the Illinois State Board of Education
for the District's Financial Profile. This score places the District in the highest category for financial
strength, labeled "Financial Recognition." It is expected that for fiscal year 2020, the District will
achieve the same recognition.
This financial report is designed to provide a general overview of the District's finances for all those
with an interest in the District. Questions concerning any of the information provided in this report or
requests for additional financial information should be addressed to:
Office of the Chief Schoo] Business Official/Director of Finance

6202 Vollmer Road
Matteson, IL 60443
XI
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION - MODIFIED CASH BASIS
JUNE 30, 2019
ASSETS
Equity in pooled cash and investments $ 29,991,108

Cash in escrow account 741,997
Capital assets not being depreciated:
Land 2,074,653
Capital assets net of accumulated depreciation:
Buildings and improvements 24,965,040
Equipment 394 555
Total assets 58,167,353
DEFERRED OUTFLOWS OF RESOURCES
Unamortized loss on refunding 2,087,033
LIABILITIES
Noncurrent liabilities:
Due within one year 3,922,852
Due in more than one year 23.534.689
Total liabilities 27.457,541
NET POSITION
Net investment in capital assets 14,268,062

Restricted for:
Debt service 796,135
Fire prevention and safety 2,542,517
Municipal retirement 5,214,835
Technology leasing 1,388,558
Tort immunity 3,764,228
Unrestricted 4.822.510
Total net position ~ 32,796,845
The accompanying notes are an integral part of the financial statements.

STATEMENT OF ACTIVITIES - MODTFIED CASH BASIS
Program Revenues Net (Expense)

Operating Revenue and
Charges for Grants and Change in
Expenses Services Contributions Net Position
Functions/programs:
Instructional $ 25,972,475 $ 5,500 $ 11,971,807 $ (13,995,168)
Pupil support 1,583,678 (1,583,678)
Other support 9,885,196 152,801 (9,732,395)
Transportation 2,613,419 550 1,405,586 (1,207,283)
Administration 1,575,595 (1,575,595)
Interest expense 2.045.770 {2,045.770)
Total governmental
activities $ 43,676,133 $ 158,851 $ 13,377,393 (30,139,889)
General revenues:
Taxes:
Property 28,322,377
Personal property replacement 687,556
Evidence based funding 3,666,772
Investment income 704,015
Other income 174 726
Total general revenues 33,555,446
Change in net position 3,415,557
Net position at beginning of year 29.381,288
Net position at end of year $ 32,796,845
2
FUND FINANCIAL STATEMENTS
BALANCE SHEET - MODIFIED CASH BASIS - GOVERNMENTAL FUNDS
JUNE 30, 2019
Capital
General Projects Transuortation
ASSETS
Equity in pooled cash and investments $ 17,882,665 $ 504,337 $ 3,792,616
Cash in escrow account
Total assets $ 17,882,665 $ 504.337 $ 3,792,6 16
FUND BALANCES
Restricted $ 5,152,786 $ - $
Assigned 504,337 3,792,616
Unassigned 12,729,879
Total fund balances $ 17,882,665 ~ 504,337 ~ 3,792,616
3
Total
Municipal Nonmajor Total
Retirement/ Governmental Governmental
Socia l Security Funds Funds
$ 5,214,835 $ 2,596,655 $ 29,991 ,108

741 997 741 997
$ 5.214.835 $ 3,338,652 $ 30.733,105
$ 5,214,835 $ 3,338,652 $ 13,706,273

4,296,953
12.729,879
$ 5,214,835 $ 3,338,652 $ 30,733,105
4
RECONCILIATION OF FUND BALANCES - TOTAL GOVERNMENTAL
FUNDS TO NET POSITION OF GOVERNMENTAL ACTIVITES
JUNE 30, 2019
Fund balances - total governmental funds $ 30,733,105
Amounts reported for governmental activities in the statement of net position -

modified cash basis are different because:
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds. 27,434,248
The unamortized loss on refunding is shown as a deferred outflow of resources

on the statement of net position - modified cash basis. 2,087,033
Long-term liabilities, including bonds payable, are not due and payable in the
current year and, therefore, are not reported as liabilities in the funds. Long-tenn
liabilities at year-end consist of:
Capital appreciation bonds payable $ (15,253,219)

Accreted interest on capital appreciation bonds payable (12,204,322)
Total (27,457.541)
Net position of governmental activities $ 32.796.845
5
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES - MODIFIBD CASH BASIS- GOVERNMENTAL FUNDS
Capital
General Projects Transportation
Revenues:
Local sources:
Property taxes $ 22,629,927 $ - $ 771,185
Investment income 398,770 11,369 83,843
Other 1-012.858 5 000
Total local sources 24.041.555 11 369 860.028
State sources:
Grants-in-aid 1 189.696 1,405,586
Total state sources 4 856.468 l 405 586
Federal sources:
Grants-in-aid 2.066,308
On behalf revenues 8 715.803
Total revenues 39,680, 134 11 369 2.265.614
Expenditures:
Current:
Instruction 23,191,896
Support services 11,634,046 2,613,419
Community services 182,081
Intergovernmental:
Payments to other districts and government units 1,628,445
Capital outlay 326,153 9,844
Debt service:
Interest
Principal
Service fees on bonds
Total expenditures 36,962,621 9 844 2.613.419
Excess (deficiency) ofrevenues over expenditures 2,717,513 1,525 (347,805)
Fund balances at beginning of year 15,165,152 502.812 4.140 421
Fund balances at end of year $ 17.882,665 $ 504 337 $ 3.792,6 16
6
Total
Municipal Nonmajor Total
Retirement/ Governmental Governmental
Social Security Funds Funds
$ 1,204,112 $ 3,717,153 $ 28,322,377

115,386 94,647 704,015
5.000 1,022,858
1,324,498 3 811.800 30,049,250
3,666,772
2,595,282
6,262,054
2,066,308
8 715 803
1,324,498 3 8 11 800 47,093,415
375,184 23,567,080
500,094 14,747,559
13,138 195,219
1,628,445
335,997
1,659,353 1,659,353
2,190,647 2,190,647
1.725 1 725
888 416 3,851,725 44,326,025
436,082 (39,925) 2,767,390
4 778.753 3 378 577 27,965,715
$ 5,214,835 i 3,338,652 $ 30,733. 105
7
RECONCILIATION OF THE NET CHANGE IN FUND BALANCES -
TOTAL GOVERNMENTAL FUNDS TO THE CHANGE IN NET
POSITION OF GOVERNMENTAL ACTMTIES
Net change in fund balances - total governmental funds $ 2,767,390
Amounts reported for governmental activities in the statement of activities -

modified cash basis are different because:
Governmental funds report capital outlays as expenditures. However, in the

statement of activities - modified cash basis, the cost of those assets is allocated
over their estimated useful lives and reported as depreciation expense. This is the
amount by which depreciation ($1,386,744) exceeded capitalized expenditures
($230,681) in the current period. (1,156,063)
Repayment of long-term debt principal is an expenditure in the governmental

funds, but the repayment reduces long-term liabilities in the governmental
activities. 2,190,647
Losses on refundings are amortized on the statement of activities - modified cash

basis, whereas these amounts were recognized in full in the governmental funds
when the refunding debt was first issued. This amount represents the current year
amortization. (417,406)
Interest on long-term debt in the statement of activities - modified cash basis

differs from the amount reported in the governmental funds because interest is
recognized as an expenditure in the funds when it is due, and thus requires the
use of current financial resources. In the statement of activities - modified cash
basis, however, interest expense on capital appreciation bonds is recognized as
the interest accrues, regardless of when it is due. The increase in interest
reported in the statement of activities - modified cash basis is the result of the net
change in accumulated accreted interest. 30 989
Change in net position of governmental activities $ 3.415.557
8
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES -
MODIFIED CASH BASIS - STUDENT ACTIVITY AGENCY FUND
JUNE 30, 2019
ASSETS
Cash $ 21.594
LIABILITIES
Due to student activity fund organizations $ 2L594
9
NOTES TO BASIC FINANCIAL STATEMENTS
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of Government-wide Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government. All fiduciary
activities are reported only in the fund financial statements. Governmental activities are generally
supported by taxes, intergovernmental revenues, and other nonexchange transactions.
B. Reporting Entity
Elementary School District 159 (the District) is governed by the Board of Education and provides primary
education, transportation, building maintenance and general administrative services.
These financial statements include the District and its component units, entities for which the District is
considered to be financially accountable. At June 30, 2019, no entities were considered component units of
the District. At June 30, 2019, the District was not considered a component unit of any other entity.
C. Basis of Presentation - Government-wide Financial Statements
While separate government-wide and fund financial statements are presented, they are interrelated. The
governmental activities financial statements incorporate data from the governmental funds. Separate
financial statements are provided for governmental funds and fiduciary funds, even though the latter are
excluded from the government-wide financial statements.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements.
D. Basis of Presentation - Fund Financial Statements
The fund financial statements provide information about the District's funds, including its fiduciary fund.
Separate statements for each fund category - governmental and fiduciary - are presented. The emphasis of
fund financial statements is on major governmental funds. Major individual governmental funds are
reported as separate columns in the fund financial statements. All remaining governmental funds are
aggregated and reported as nonmajor funds.
The District has the following major governmental funds:
The General Fund is the District's primary operating fund. It is comprised of four subfunds: the
Educational Fund, the Operations and Maintenance Fund, the Tort Fund, and the Working Cash
Fund. The General Fund accounts for all financial resources of the District, except those required to
be accounted in another fund.
10
The Capital Projects Fund, a capital projects fund, accounts for the receipt and disbursement of
monies used for the acquisition and/or construction of capital assets.
The Transportation Fund, a special revenue fund, accounts for transportation activities of the District.
The Municipal Retirement/Social Security Fund, a special revenue fund, accounts for retirement benefit
activities of the District.
The District has the following nonmajor governmental funds:
Capital projects fund type:

This fund type is used to account for financial resources that are earmarked or segregated for the
acquisition and/or construction of capital assets, except those financed and accounted for in other
funds. The District's nonmajor capital projects fund is the Fire Prevention and Safety Fund.
Debt service fund type:

This fund type is used to account for the accumulation of resources for and payment of principal,
interest, and related costs of the District's general long-term debt. The District's nonmajor debt
service fund is the Debt Services Fund.
Additionally, the District reports the following fiduciary fund type:
The Student Activity Agency Fund accounts for assets held by the District as an agent for the
students. The fund is custodial in nature and does not involve the measurement of results of
operations. The amounts due to the activity fund organizations are equal to the assets.
During the course of operations, the District has activity between funds for various purposes. In fund
financial statements any residual balances outstanding at year end are reported as due from/to other funds
and advances to/from other funds.
Further, certain activity occurs during the year involving transfers of resources between funds. In fund
financial statements these amounts are reported at gross amounts as transfers in/out.
E. Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe what transactions or events are recorded within the various
financial statements. Basis of accounting refers to when and how transactions or events are recorded,
regardless of the measurement focus applied.
11
1. Measurement Focus
In the government-wide statement of net position and statement of activities, governmental activities are
presented using the economic resources measurement focus, within the limitations of the modified cash
basis of accounting. The accounting objectives of this measurement focus are the determination of net
(expense) revenue, change in net position, and net financial position. All assets, deferred outflows of
resources, liabilities, and deferred inflows of resources (whether current or noncurrent or financial or
nonfinancial) associated with their activities are generally reported within the limitations of the modified
cash basis of accounting.
Governmental funds utilize a current financial resources measurement focus within the limitations of the
modified cash basis of accounting. Only current financial assets and liabilities are generally included on
their balance sheets. Their operating statements present sources and uses of available spendable financial
resources during a given period. These funds use fund balance as their measure of available spendable
financial resources at the end of the period.
The agency fund is custodial in nature and does not involve the measurement of results of operations;
therefore, it does not have a measurement focus.
2. Basis of Accounting
The financial statements are presented on the modified cash basis of accounting, which is a basis of
accounting other than accounting principles generally accepted in the United States of America (GAAP) as
established by the Governmental Accounting Standards Board. This basis of accounting involves
modifications to the cash basis of accounting to report in the statements of net position or balance sheets
cash transactions or events that provide a benefit or result in an obligation that covers a period greater than
the period in which the cash transaction or event occurred. Such reported balances include investments,
interfund receivables and payables, capital assets and related depreciation, and short-term and long-term
liabilities arising from cash transactions or events.
This modified cash basis of accounting differs from GAAP primarily because certain assets and their
related revenues (such as accounts receivable and revenue for billed or provided services not yet collected
and other accrued revenue and receivables) and certain liabilities and their related expenses or
expenditures (such as accounts payable and expenses for goods or services received but not yet paid and
other accrued expenses and liabilities) are not recorded in these financial statements. In addition, certain
other economic assets and liabilities that do not arise from a cash transaction or event are not reported, and
the measurement of reported assets and liabilities does not involve adjustment to fair value.
If the District utilized the basis of accounting recognized as generally accepted in the United States of
America, the fund financial statements for governmental funds would use the modified accrual basis of
accounting. The government-wide and fiduciary fund financial statements would be presented on the
accrual basis of accounting.
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F. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance
1. Cash and Investments
Cash and investments of the District are pooled into a common pooled account in order to maximize
investment opportunities. Each fund whose monies are deposited into the pooled account has equity
therein. Each fund's portion of the pool is displayed on its respective balance sheet as "equity in pooled
cash and investments."
2. Cash in Escrow Account
Cash in escrow account is comprised of the proceeds of the tax levy that will be used to make future debt
service payments on the Series 2004 General Obligation Bonds issue.
3. Capital Assets
The District’s modified cash basis of accounting reports capital assets (land, buildings and improvements,
and equipment) resulting from cash transactions or certain events and reports depreciation, when
appropriate. The accounting treatment over capital assets depends on whether they are reported in the
government-wide or fund financial statements.
Capital assets reported in the government-wide financial statements are defined by the District as assets
with an initial, individual cost of more than $2,000 and an estimated useful life in excess of one year. As
the District constructs or acquires additional capital assets each period, they are capitalized and reported at
historical cost. The reported value excludes normal maintenance and repairs which are essentially amounts
spent in relation to capital assets that do not increase the capacity or efficiency of the item or increase its
estimated useful life. Donated capital assets are recorded at their estimated fair value at the date of
donation.
Depreciation of all exhaustible capital assets is recorded as an allocated expense in the statement of
activities, with accumulated depreciation reflected in the statement of net position. Depreciation is
provided over the assets’ estimated useful lives using the straight-line method of depreciation. The range
of estimated useful lives by type of asset is as follows:
Assets Years
Buildings and improvements 10 - 40

Equipment 3-5
In the fund financial statements, capital assets acquired for use in governmental fund operations are
accounted for as capital outlay expenditures of the governmental fund upon acquisition.
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4. Deferred Outflows/Inflows of Resources
In addition to assets, the financial statements will sometimes report a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period and so will not be recognized as an
outflow of resources (expense/expenditure) until then. The District has only one type of item that qualifies
for reporting in this category. Accordingly, the item, unamortized loss on refunding, is reported in the
government-wide statement of net position - modified cash basis. An unamortized loss on refunding results
from the difference in the carrying value of refunded debt and its reacquisition price. This amount is
deferred and amortized over the shorter of the life of the refunded or refunding debt.
In addition to liabilities, the financial statements will sometimes report a separate section for deferred
inflows of resources. This separate financial statement element, deferred inflows of resources, represents
an acquisition of net position that applies to a future period and so will not be recognized as an inflow of
resources (revenues) until that time. The District currently does not have any items that qualify for
reporting in this category.
5. Long-term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported
as liabilities in the statement of net position. Bond premiums and discounts, as well as gains (losses) on
refundings, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the
applicable bond premium or discount. Gains (losses) on refundings are reported as deferred inflows
(outflows) of resources. Bond issuance costs, whether or not withheld from the actual debt proceeds
received, are reported as expenses.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well
as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
6. Net Position Flow Assumption
Sometimes the District will fund outlays for a particular purpose from both restricted (e.g., restricted bond
or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted net
position and unrestricted net position in the government-wide financial statements, a flow assumption must
be made about the order in which the resources are considered to be applied.
It is the District's policy to consider restricted net position to have been depleted before unrestricted net
position is applied.
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7. Fund Balance Flow Assumptions
Sometimes the District will fund outlays for a particular purpose from both restricted and unrestricted
resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the
amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental
fund financial statements a flow assumption must be made about the order in which the resources are
considered to be applied. It is the District's policy to consider restricted fund balance to have been depleted
before using any of the components of unrestricted fund balance. Further, when the components of
unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first,
followed by assigned fund balance. Unassigned fund balance is applied last.
8. Fund Balance Policies
Fund balance of governmental funds is reported in various categories based on the nature of any
limitations requiring the use of resources for specific purposes. The District itself can establish limitations
on the use of resources through either a commitment (committed fund balance) or an assignment (assigned
fund balance).
The committed fund balance classification includes amounts that can be used only for the specific
purposes determined by a formal action of the District's highest level of decision-making authority. The
Board of Education is the highest level of decision-making authority for the District that can, by adoption
of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation
imposed by the resolution remains in place until a similar action is taken (the adoption of another
resolution) to remove or revise the limitation.
Amounts in the assigned fund balance classification are intended to be used by the District for specific
purposes but do not meet the criteria to be classified as committed. The Board of Education may, by
resolution, authorize an individual to assign fund balance. The Board of Education has not adopted such a
resolution. The Board of Education may also assign fund balance as it does when appropriating fund
balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated
budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional
action does not normally have to be taken for the removal of an assignment. Conversely, as discussed
above, an additional action is essential to either remove or revise a commitment.
G. Revenues
1. Program Revenues
Amounts reported as program revenues include 1) charges to individuals or entities that purchase, use, or
directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants
and contributions that are restricted to meeting the operational or capital requirements of a particular
function or segment. All taxes, including those dedicated for specific purposes, and other internally
dedicated resources are reported as general revenues rather than as program revenues.
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2. Property Taxes
Property taxes are levied as of January 1 on property values assessed on the same date. The Board of
Education approved the 2018 tax levy on December 20, 2018. The tax levy is divided into two billings: the
first billing (mailed on or about February 1) is an estimate of the current year's levy based on the prior
year's taxes; the second billing (mailed on or about July 1) reflects adjustments to the current year's actual
levy. The billings are considered past due 30 days after the respective billing date at which time the
applicable property is subject to lien and penalties and interest are assessed. The District receives
significant distributions of tax receipts approximately one month after the due dates.
H. Estimates
Management uses estimates and assumptions in preparing financial statements. Those estimates and
assumptions affect the reported amounts of assets, liabilities, and deferred outflows/inflows of resources;
the disclosure of contingent assets and liabilities; and the reported revenues and expenses/expenditures.
Actual results could differ from those estimates.
I. Reclassifications
Certain accounts in the prior year financial statements and schedules have been reclassified for
comparative purposes to conform with the presentation in the current year financial statements and
schedules.
II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. Budgetary Information
The budget is prepared on the modified cash basis of accounting for all governmental funds, which is an
acceptable method as prescribed by the Illinois State Board of Education and is the same basis that is used
for financial reporting. This allows for comparability between budget and actual amounts. The level of
control (level at which expenditures may not exceed budget/appropriations) is the fund. The budget
appropriations lapse at the end of each fiscal year. The District does not utilize an encumbrance system.
The District follows these procedures in establishing the budgetary data reflected in the financial
statements.
1. The administration submits to the Board of Education a proposed operating budget for the fiscal
year commencing July 1. The operating budget includes proposed expenditures and the means of
financing them.
2. Public hearings are conducted and the proposed budget is available for inspection to obtain taxpayer
comments.
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3. Prior to September 30, the budget is legally adopted through passage of a resolution. Prior to the
last Tuesday in December, a tax levy resolution is filed with the County Clerk to obtain tax
revenues.
4. The Superintendent is authorized to transfer up to 10% of the total budget between departments
within any fund; however, any revisions that alter the total expenditures of any fund must be
approved by the Board of Education.
5. Formal budgetary integration is employed as a management control device during the year.
6. The Board of Education may amend the budget by the same procedures required of its original
adoption.
B. Excess of Expenditures over Budget
The following funds had an excess of actual expenditures over the budgeted amount for the year ended
June 30, 2019:
Budget Actual Variance

Major governmental funds:
General Fund subfunds:
Educational Fund $ 25,645,020 $ 32,819,418 $ (7,174,398)
Operations and Maintenance Fund 3,329,500 3,418,709 (89,209)
Tort Fund 340,000 724,494 (384,494)
Capital Projects Fund - 9,844 (9,844)
Municipal Retirement/Social Security Fund 883,345 888,416 (5,071)
The overexpenditure in the Educational Fund was primarily due to on-behalf expenditures that were
funded by the related on-behalf revenues. The overexpenditure in the Operations and Maintenance Fund
was funded by an advance received from the Educational Fund. The overexpenditure in the Tort Fund was
funded by available fund balance. The overexpenditures in the Capital Projects Fund and the Municipal
Retirement/Social Security Fund were funded by current revenues.
C. Deficit Fund Balance
The following fund had a deficit fund balance as of June 30, 2019. The deficit will be eliminated with
future revenues and transfers from other funds as necessary.
Major governmental fund:

General subfund:
Operations and Maintenance Fund $ (194,863)
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III. DETAILED NOTES ON ALL ACTIVITIES AND FUNDS
A. Deposits and Investments
In the Custody of the Bloom Township School Treasurer
The District participates in the Bloom Township School Treasurer cash and investment pool. The
Treasurer is appointed by the Bloom Township School Trustees, an independent elected body, to serve
districts in the township. While the District is not in the township, they have contracted with the Treasurer
to participate in the pool. The Treasurer is the direct recipient of property taxes, corporate personal
property replacement taxes and most state and federal aid and disburses school funds upon lawful order of
the school board. The Treasurer invests excess funds at his discretion, subject to the legal restrictions
discussed below. For these purposes, the Treasurer is permitted to combine monies of more than one fund
of a single district and combine monies of more than one district in the pool. Monies combined under these
circumstances, as well as investment income, are accounted for separately for each fund and/or district. No
district is permitted to borrow from another entity through deficit spending within the Treasurer’s cash and
investment pool.
Cash and investments, other than student activity and convenience accounts, petty cash and imprest funds,
are part of a common pool for all districts participating in the cash and investment pool. The Treasurer
maintains records that segregate the cash and investment balance by district.
All cash for all funds, including cash applicable to the Debt Services Fund and the Municipal
Retirement/Social Security Fund, is not deemed available for purposes other than those for which these
balances are intended.
The Treasurer's investment policies are established by the Bloom Township School Trustees as prescribed
by the Illinois School Code and the Illinois Compiled Statutes. The Treasurer is authorized to invest in
obligations of the U.S. Treasury, backed by the full faith and credit of the U.S. government, certificates of
deposit issued by commercial banks and savings and loan associations, and commercial paper rated within
the three highest classifications by at least two standard rating services (subject to certain limitations).
The Treasurer’s office operates as a non-rated, external investment pool. The reported amount of the
District’s investment in the Treasurer’s pool is determined by the District’s proportionate share of the
investments held by the Treasurer’s office.
Because all cash and investments are pooled by a separate legal government agency (Treasurer),
categorization by risk category is not determinable. Further information about whether investments are
insured, collateralized or uncollateralized, ratings (if applicable) and maturities is available from the
Treasurer’s financial statements. As of June 30, 2019, the District’s proportionate share of the Treasurer's
investment pool was $30,132,346.
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In the Custody of the District
Custodial credit risk for deposits is the risk that, in the event of a bank failure, the District's deposits might
not be recovered. The District does not have a deposit policy for custodial credit risk. As of June 30, 2019,
the District's bank balances were covered by federal depository insurance.
B. Capital Assets
Capital asset activity for the year ended June 30, 2019 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Capital assets not being depreciated:
Land $ 2,074,653 $ - $ - $ 2,074,653
Capital assets being depreciated:

Buildings and improvements 48,310,808 211,259 - 48,522,067
Equipment 7,108,643 19,422 - 7,128,065
Total capital assets being depreciated 55,419,451 230,681 - 55,650,132
Less accumulated depreciation for:

Buildings and improvements (22,346,616) (1,210,411) - (23,557,027)
Equipment (6,557,177) (176,333) - (6,733,510)
Total accumulated depreciation (28,903,793) (1,386,744) - (30,290,537)
Total capital assets being depreciated,

net 26,515,658 (1,156,063) - 25,359,595
Governmental activities capital assets,

net $ 28,590,311 $ (1,156,063) $ - $ 27,434,248
Depreciation expense was charged to functions/programs as follows:
Instructional $ 779,632
Other support 607,112
Total depreciation expense - governmental

activities $ 1,386,744
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C. Interfund Activity
Due from/to other funds
Receivable fund Payable fund Amount
Major governmental fund: Major governmental fund:

General Fund subfund: General Fund subfund:
Educational Fund Operations and Maintenance Fund $ 194,863
Less intrafund elimination (194,863)
Total $ -
The outstanding balance between funds results mainly from time lag between the dates that monies are
received by the fund and expended by the other fund. The repayment of the loan is expected to be made
with interfund transfers in the subsequent year.
D. Long-term Debt
Schedules of debt outstanding at June 30, 2019 are as follows:
Series 2004 Limited Capital Appreciation School Bonds

Issue March 16, 2004
Fiscal
Year Due Principal Interest Total
2020 $ 677,930 $ 707,070 $ 1,385,000

2021 637,294 747,706 1,385,000
2022 598,971 786,029 1,385,000
2023 194,645 290,355 485,000
Total $ 2,108,840 $ 2,531,160 $ 4,640,000
Denomination $5,000
Bonds and interest due each year December 1st
Interest rates 4.15% to 4.94%
Paying agent Bank of New York Mellon
Total original issue $5,224,079
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Series 2007 General Obligation Capital Appreciation School Bonds

Issue July 11, 2007
Fiscal
2020 $ 1,505,746 $ 1,154,254 $ 2,660,000

2021 1,528,655 1,321,345 2,850,000
2022 1,552,250 1,492,750 3,045,000
2023 2,002,208 2,132,792 4,135,000
2024 2,213,263 2,601,737 4,815,000
2025 2,186,384 2,818,616 5,005,000
2026 2,155,873 3,039,127 5,195,000
Total $ 13,144,379 $ 14,560,621 $ 27,705,000
Denomination $5,000
Bonds and interest due each year December 1st
Interest rates 3.98% to 4.85%
Paying agent Bank of New York Mellon
Total original issue $24,596,337
Total annual debt service requirements to maturity for all debt outstanding are as follows:
Fiscal
2020 $ 2,183,676 $ 1,861,324 $ 4,045,000

2021 2,165,949 2,069,051 4,235,000
2022 2,151,221 2,278,779 4,430,000
2023 2,196,853 2,423,147 4,620,000
2024 2,213,263 2,601,737 4,815,000
2025 2,186,384 2,818,616 5,005,000
2026 2,155,873 3,039,127 5,195,000
Total $ 15,253,219 $ 17,091,781 $ 32,345,000
At June 30, 2019, $796,135 was available in the Debt Services Fund to service the above obligations.
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Long-term liability activity for the year ended June 30, 2019 was as follows:
Beginning Ending Due Within

Balance Additions Reductions Balance One Year
Capital appreciation bonds $ 17,443,866 $ - $ 2,190,647 $ 15,253,219 $ 2,183,676

Accreted interest on capital
appreciation bonds 12,235,311 1,628,364 1,659,353 12,204,322 1,739,176
Total $ 29,679,177 $ 1,628,364 $ 3,850,000 $ 27,457,541 $ 3,922,852
Prior Year Defeasance of Debt
In prior years, the District defeased various bond issues by placing proceeds of new bonds in irrevocable
trust funds to provide for future debt service payments on the old bonds. Accordingly, the trust account
assets and the liability for the defeased bonds are not included in the District's financial statements. At
June 30, 2019, defeased bonds of $4,353,193 remain outstanding.
Legal Debt Margin
The District's legal debt margin as June 30, 2019 is calculated as follows:
Assessed valuation - 2018 tax year $ 429,862,112
Statutory debt limitation (6.9% of assessed valuation) $ 29,660,486
Debt:
Capital appreciation bonds payable 15,253,219
Legal debt margin $ 14,407,267
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E. Fund Balances
As of June 30, 2019, fund balances were comprised of the following:
Municipal
Retirement/ Total
Capital Social Nonmajor Total
General Projects Transportation Security Governmental Governmental
Fund Fund Fund Fund Funds Funds
Restricted:
Technology leasing $ 1,388,558 $ - $ - $ - $ - $ 1,388,558
Tort immunity 3,764,228 - - - - 3,764,228
Municipal retirement - - - 5,214,835 - 5,214,835
Fire prevention and
safety - - - - 2,542,517 2,542,517
Debt service - - - - 796,135 796,135
Total restricted 5,152,786 - - 5,214,835 3,338,652 13,706,273
Assigned:
Capital projects - 504,337 - - - 504,337
Transportation - - 3,792,616 - - 3,792,616
Total assigned - 504,337 3,792,616 - - 4,296,953
Unassigned 12,729,879 - - - - 12,729,879
Total fund balances $ 17,882,665 $ 504,337 $ 3,792,616 $ 5,214,835 $ 3,338,652 $ 30,733,105
IV. OTHER INFORMATION
A. Risk Management
The District is exposed to various risks of loss related to torts; thefts of, damage to and destruction of
assets; errors and omissions; workers' compensation; and employee medical coverage.
The District participates in the School Employees Loss Fund (SELF) for its workers' compensation
coverage and carries commercial insurance for its general liability and property coverage. Settled claims
have not exceeded commercial insurance coverage during any of the past three years. SELF is an
organization of school districts in Illinois which have formed associations under the Illinois
Intergovernmental Cooperation Act to pool risk management needs.
SELF's member premiums are used to purchase commercial insurance. The District, along with other
members of SELF, has a contractual obligation to fund any premium deficiency of the pool attributable to
a year during which it was a member. SELF can assess supplemental premiums to fund these premium
deficiencies. In the past three years, the District has not made any supplemental premium payments to
SELF.
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The members appoint one delegate to represent the District on the Board of Directors of the SELF pool.
The District does not exercise any control over the activities of the pool beyond its representation on the
Board of Directors.
The District purchases commercial insurance for its employee medical coverage.
B. Employee Retirement Systems and Plans
1. Teachers' Retirement System of the State of Illinois
Plan description. The District (employer) participates in the Teachers’ Retirement System of the State of
Illinois (TRS). TRS is a cost-sharing multiple-employer defined benefit pension plan that was created by
the Illinois legislature for the benefit of Illinois public school teachers employed outside the city of
Chicago. TRS members include all active nonannuitants who are employed by a TRS-covered employer to
provide services for which teacher licensure is required. The Illinois Pension Code outlines the benefit
provisions of TRS, and amendments to the plan can be made only by legislative action with the Governor’s
approval. The TRS Board of Trustees is responsible for the System’s administration.
TRS issues a publicly available financial report that can be obtained at https://www.
trsil.org/financial/cafrs/fy2018; by writing to TRS at 2815 W. Washington, PO Box 19253, Springfield, IL
62794; or by calling (888) 678-3675, option 2.
Benefits provided. TRS provides retirement, disability, and death benefits. Tier 1 members have TRS or
reciprocal system service prior to January 1, 2011. Tier 1 members qualify for retirement benefits at age 62
with five years of service, at age 60 with 10 years, or age 55 with 20 years. The benefit is determined by
the average of the four highest years of creditable earnings within the last 10 years of creditable service
and the percentage of average salary to which the member is entitled. Most members retire under a formula
that provides 2.2% of final average salary up to a maximum of 75% with 34 years of service. Disability
and death benefits are also provided.
Tier 2 members qualify for retirement benefits at age 67 with 10 years of service, or a discounted annuity
can be paid at age 62 with 10 years of service. Creditable earnings for retirement purposes are capped and
the final average salary is based on the highest consecutive eight years of creditable service rather than the
last four. Disability provisions for Tier 2 are identical to those of Tier 1. Death benefits are payable under
a formula that is different from Tier 1.
Essentially all Tier 1 retirees receive an annual 3% increase in the current retirement benefit beginning
January 1 following the attainment of age 61 or on January 1 following the member’s first anniversary in
retirement, whichever is later. Tier 2 annual increases will be the lesser of 3% of the original benefit or
one-half of the rate of inflation beginning January 1 following attainment of age 67 or on January 1
following the member’s first anniversary in retirement, whichever is later.
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Public Act 100-0023, enacted in 2017, creates an optional Tier 3 hybrid retirement plan, but it has not yet
gone into effect. The earliest possible implementation date is July 1, 2020. Public Act 100-0587, enacted in
2018, requires TRS to offer two temporary benefit buyout programs that expire on June 30, 2021. One
program allows retiring Tier 1 members to receive a partial lump-sum payment in exchange for accepting a
lower, delayed annual increase. The other allows inactive vested Tier 1 and 2 members to receive a partial
lump-sum payment in lieu of a retirement annuity. Both programs will begin in 2019 and will be funded by
bonds issued by the state of Illinois.
Contributions. The state of Illinois maintains the primary responsibility for funding TRS. The Illinois
Pension Code, as amended by Public Act 88-0593 and subsequent acts, provides that for years 2010
through 2045, the minimum contribution to the System for each fiscal year shall be an amount determined
to be sufficient to bring the total assets of the System up to 90% of the total actuarial liabilities of the
System by the end of fiscal year 2045.
Contributions from active members and TRS contributing employers are also required by the Illinois
Pension Code. The contribution rates are specified in the pension code. The active member contribution
rate for the year ended June 30, 2018 was 9% of creditable earnings. The member contribution, which may
be paid on behalf of employees by the employer, is submitted to TRS by the employer.
On behalf contributions to TRS. The state of Illinois makes employer pension contributions on behalf of
the employer. For the year ended June 30, 2019, state of Illinois contributions recognized by the District
were based on the state's proportionate share of the collective net pension liability associated with the
employer, and the District recognized revenue and expenditures of $8,574,616 in pension contributions
that the state of Illinois paid directly to TRS.
2.2 formula contributions. Employers contribute 0.58% of total creditable earnings for the 2.2 formula
change. The contribution rate is specified by statute. Contributions for the year ended June 30, 2019 were
$65,647.
Federal and special trust fund contributions. When TRS members are paid from federal and special trust
funds administered by the employer, there is a statutory requirement for the employer to pay an employer
pension contribution from those funds. Under Public Act 100-0340, the federal and special trust fund
contribution rate is the total employer normal cost beginning with the year ended June 30, 2018.
Previously, employer contributions for employees paid from federal and special trust funds were at the
same rate as the state contribution rate to TRS and were much higher.
For the year ended June 30, 2019, the employer pension contribution was 9.85% of salaries paid from
federal and special trust funds. For the year ended June 30, 2019, salaries totaling $391,746 were paid
from federal and special trust funds that required employer contributions of $38,587.
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Employer retirement cost contributions. The employer is required to make a one-time contribution to TRS
for members granted salary increases over 6% if those salaries are used to calculate a retiree’s final
average salary. Additionally, beginning with the year ended June 30, 2019, employers will make a similar
contribution for salary increases over 3% if members are not exempted by current collective bargaining
agreements or contracts.
A one-time contribution is also required for members granted sick leave days in excess of the normal
annual allotment if those days are used as TRS service credit. For the year ended June 30, 2019, the
employer paid $0 to TRS for employer contributions due on salary increases in excess of 6%, $0 for salary
increases in excess of 3% and $0 for sick leave days granted in excess of the normal annual allotment.
2. Illinois Municipal Retirement Fund
Plan description. The District's defined benefit pension plan for employees that are not in positions
covered by the Teachers' Retirement System of the State of Illinois provides retirement and disability
benefits, post-retirement increases, and death benefits to plan members and beneficiaries. The District's
plan is managed by the Illinois Municipal Retirement Fund (IMRF), the administrator of a multi-employer
public pension fund. A summary of IMRF's pension benefits is provided in the "Benefits Provided" section
of this document. Details of all benefits are available from IMRF. Benefit provisions are established by
statute and may only be changed by the General Assembly of the State of Illinois. IMRF issues a publicly
available Comprehensive Annual Financial Report that includes financial statements, detailed information
about the pension plan's fiduciary net position, and required supplementary information. The report is
available for download at www.imrf.org.
Benefits provided. IMRF has three benefit plans. The vast majority of IMRF members participate in the
Regular Plan. The Sheriff’s Law Enforcement Personnel (SLEP) plan is for sheriffs, deputy sheriffs, and
selected police chiefs. Counties could adopt the Elected County Official (ECO) plan for officials elected
prior to August 8, 2011 (the ECO plan was closed to new participants after that date). Employees of the
District who are eligible to participate in the plan participate in the Regular Plan.
All three IMRF benefit plans have two tiers. Employees hired before January 1, 2011, are eligible for Tier
1 benefits. Tier 1 employees are vested for pension benefits when they have at least eight years of
qualifying service credit. Tier 1 employees who retire at age 55 (at reduced benefits) or after age 60 (at full
benefits) with eight years of service are entitled to an annual retirement benefit, payable monthly for life,
in an amount equal to 1-2/3% of the final rate of earnings for the first 15 years of service credit, plus 2%
for each year of service credit after 15 years to a maximum of 75% of their final rate of earnings. Final rate
of earnings is the highest total earnings during any consecutive 48 months within the last 10 years of
service, divided by 48. Under Tier 1, the pension is increased by 3% of the original amount on January 1
every year after retirement.
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Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 employees,
pension benefits vest after 10 years of service. Participating employees who retire at age 62 (at reduced
benefits) or after age 67 (at full benefits) with 10 years of service are entitled to an annual retirement
benefit, payable monthly for life, in an amount equal to 1-2/3% of the final rate of earnings for the first 15
years of service credit, plus 2% for each year of service credit after 15 years to a maximum of 75% of their
final rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months
within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased on January 1 every
year after retirement, upon reaching age 67, by the lesser of:
 3% of the original pension amount, or

 One-half of the increase in the Consumer Price Index of the original pension amount.
Employees covered by benefit terms. As of December 31, 2018 the following employees were covered by
the benefit terms:
Retirees or beneficiaries currently receiving benefits 239

Inactive employees entitled to but not yet receiving benefits 126
Active employees 115
Total 480
Contributions. As set by statute, the District's Regular Plan members are required to contribute 4.5% of
their annual covered salary. The statute requires employers to contribute the amount necessary, in addition
to member contributions, to finance the retirement coverage of its own employees. The District's annual
contribution rates for calendar years 2019 and 2018 were 7.56% and 9.15%, respectively. For the fiscal
year ended June 30, 2019, the District contributed $386,511 to the plan. The District also contributes for
disability benefits, death benefits and supplemental retirement benefits, all of which are pooled at the
IMRF level. Contribution rates for disability and death benefits are set by the IMRF Board of Trustees,
while the supplemental retirement benefits rate is set by statute.
3. Social Security
Employees not qualifying for coverage under the Teachers' Retirement System of the State of Illinois or
the Illinois Municipal Retirement Fund are considered "nonparticipating employees." These employees and
those qualifying for coverage under the Illinois Municipal Retirement Fund are covered under Social
Security. The District paid $274,286, the total required contribution for the current year.
27
4. Teacher Health Insurance Security Fund
The District (employer) participates in the Teacher Health Insurance Security (THIS) Fund, a cost-sharing,
multiple-employer defined benefit postemployment healthcare plan that was established by the Illinois
legislature for the benefit of retired Illinois public school teachers employed outside the city of Chicago.
The THIS Fund provides medical, prescription, and behavioral health benefits, but it does not provide
vision, dental, or life insurance benefits to annuitants of the Teachers' Retirement System of the State of
Illinois (TRS). Annuitants not enrolled in Medicare may participate in the state-administered participating
provider option plan or choose from several managed care options. Annuitants who are enrolled in
Medicare Parts A and B may be eligible to enroll in a Medicare Advantage plan.
The State Employees Group Insurance Act of 1971 (5 ILCS 375) outlines the benefit provisions of the
THIS Fund and amendments to the plan can be made only by legislative action with the Governor's
approval. The plan is administered by the Illinois Department of Central Management Services (CMS)
with the cooperation of TRS. Section 6.6 of the State Employees Group Insurance Act of 1971 requires all
active contributors to TRS who are not employees of the state make a contribution to the THIS Fund.
The percentage of employer required contributions in the future will not exceed 105% of the percentage of
salary actually required to be paid in the previous fiscal year.
On behalf contributions to the THIS Fund. The state of Illinois makes employer retiree health insurance
contributions on behalf of the employer. State contributions are intended to match contributions to the
THIS Fund from active members which were 1.24% of pay during the year ended June 30, 2019. State of
Illinois contributions were $141,187, and the employer recognized revenue and expenditures of this
amount during the year.
Employer contributions to the THIS Fund. The employer also makes contributions to the THIS Fund. The
employer THIS Fund contribution was 0.92% during the year ended June 30, 2019. For the year ended
June 30, 2019, the employer paid $104,130 to the THIS Fund, which was 100% of the required
contribution.
Further information on the THIS Fund. The publicly available financial report of the THIS Fund may be
found on the website of the Illinois Auditor General (http://www.auditor.illinois.gov/Audit-Reports/ABC-
List.asp). The current reports are listed under "Central Management Services"
(http://www.auditor.illinois.gov/Audit-Reports/CMS-THISF.asp). Prior reports are available under
"Healthcare and Family Services" (http://www.auditor.illinois.gov/Audit-Reports/HEALTHCARE-
FAMILY-SERVICES-Teacher-Health-Ins-Sec-Fund.asp).
28
5. Postretirement Health Plan
Plan description. The Postretirement Health Plan (PHP) is a single-employer defined benefit healthcare
plan administered by the District. The District provides limited health care and life insurance coverage for
its eligible retired employees. Such coverage is provided for retired employees until they reach age 65.
The District does not issue a stand-alone report for PHP.
Funding policy. The contribution requirements are established by the District. The District's contribution is
based on projected pay-as-you-go financing requirements. The District does not provide any additional
amount to prefund benefits nor does the plan have an actuarial valuation. For fiscal year 2019, the District
contributed $69,471 to the plan. Plan members receiving benefits contributed $0.
C. Other Information
1. Jointly Governed Organization
The District, in conjunction with 10 other area school districts, has created the Southwest Cook County
Cooperative Association for Special Education (SWCASE). SWCASE's board of directors is composed of
one member from each of the 11 participating school districts. SWCASE charged the District $1,625,135
for special education tuition and other related expenditures during the year ended June 30, 2019. SWCASE
issues a publicly available financial report that includes financial statements and required supplementary
information. The report may be obtained by writing to SWCASE, 6020 W. 151st Street, Oak Forest,
Illinois.
2. Tort Immunity Expenditures
Tort immunity expenditures for the year ended June 30, 2019 included insurance premiums and
settlements of $724,494.
3. Concentrations
The District's agreement with the National Education Association expires at the end of the 2021 school
year. The District's agreement covering its support staff expires at the end of the 2020 school year.
4. Contingencies
The District is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently
determinable, in the opinion of management, the resolution of these matters will not have a material
adverse effect on the financial condition of the District.
5. Subsequent Events
Management has evaluated subsequent events through January 30, 2020, which is the date the financial
statements were available to be issued.
29
COMBINING AND INDIVIDUAL FUND FINANCIAL
STATEMENTS AND SCHEDULES
MAJOR GOVERNMENTAL FUNDS
GENERAL FUND
GENERAL FUND
COMBINING SCHEDULE OF BALANCE SHEET ACCOUNTS - MODIFIED CASH BASIS
JUNE 30, 2019
Operations
and
Educational Maintenance Tort
ASSETS
Equity in pooled cash and investments $ 11,503,869 $ - $ 3,764,228

Due from other funds 194 863
Total assets $ 11.698.732 $ - $ 3,764,228
LIABILITIES AND FUND BALANCES (DEFlCJT)
Liabilities:
Due to other funds $ - $ 194,863 $
Fund balances (deficit):
Restricted 1,388,558 3,764,228
Unassigned 10,310.174 (194,863)
Total fund balances (deficit) 11,698,732 (194,863) 3.764.228
Total liabilities and fund balances (deficit) $ 11,698,732 $ - $ 3.764.228
See independent auditor's report.
30
Working
Cash Eliminations Total
$ 2,614,568 $ - $ 17,882,665
(194,863)
$ 2,614,568 $ (194.863) i 1.7,882,665
$ - $ (194,863) $
5,152,786
2.614.568 12.729.879
2.614.568 17.882.665
$ 2,614,568 $ (194,863) $ 17,882,665
31
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - MODIFIED CASH BASIS
Operations
and
Revenues:
Local sources:
Property taxes (county adjustment) $ 20,603,875 $ 1,903,062 $ (49,739)
Investment income 257,526 83,436
Other 946 193 66 665
Total local sources 2 1,807,594 l 969 727 33 697
State sources:
Grants-in-aid 1,189,696
Total state sources 4 856 468
Federal sources:
Grants-in-aid 2,066,308
On behalf revenues 8,715,803
Total revenues 37,446.173 l 969 727 33 697
Expenditures:
Current:
Instruction 23.191.896
Support services:
Pupils 1,526,364
Instructional staff 495,937
General administration 900,741 724,494
School administration 1,816,060
Business 1,835,085 3,207,450
Central 1,067,424
Other 60491
Total support services 7.702,102 3.207.450 724 494
Community services 182.081
32
Working
Cash Total
$ 172,729 $ 22,629,927
57, 808 398,770
1,012,858
230.537 24.041.555
3,666,772
1,189,696
4.856,468
2,066,308
8,7 15,803
230.537 39,680, 134
23,191.896
1,526,364
495,937
l,625,235
1,-8 16,060
5,042,535
l ,067,424
6049 1
11,634.046
182.081
(continued)
33
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - MODIFIED CASH BASIS
Operations
and
Intergovernmental:
Payments to other districts and government units 1,628.445
Capital outlay 1·14894 211 259
Total expenditures 32,819,418 3 418 709 724 494
Excess (deficiency) of revenues over expenditures 4,626,755 (1,448,982) (690,797)
Fund balances at beginning of year 7 071 977 1 254.119 4.455.025
Fund balances (deficit) at end of year ~ 11,698,732 i (194.863) $ 3,764,228
34
Working
Cash Total
1,628.445
326.153
36.962.621
230,537 2,717,513
2.384.031 15.165.152
$ 2.614.568 $ 17.882.665
(concluded)
35
EDUCATIONAL FUND
EDUCATIONAL FUND
BALANCE SHEET - MODIFIED CASH BASIS
JUNE 30, 2019
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2018
2019 2018
ASSETS
Equity in pooled cash and investments $ 11,503,869 $ 7,071,977

Due from other funds 194 863
Total assets $ 11,698,732 $ 7.071,977
FUND BALANCES
Restricted $ 1,388,558 $ 1,388,558

Unassigned 10.310,174 5,683,419
Total fund balances $ 11,698,732 =$==7·=07=1=.9=7==7
36
EDUCATIONAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES - MODIFIED CASH BASIS - BUDGET AND ACTUAL
WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2018
2019 2018
Original
and Final Variance with
Budget Actual Final Budget Actual
Revenues:
Local sources:
Property taxes $ 20,685,000 $ 20,603,875 $ (81,125) $ 16,613,344
Investment income 275,000 257,526 (17,474) 79,280
Other 716 000 946.193 230.193 965.568
Total local sources 21.676.000 21.807.594 13 l.594 17,658.192
State sources:
Evidence based funding 3,412,000 3,666,772 254,772 3,375,168
Grants-in-aid 1.001.600 1.189.696 188 096 1,834.353
Total state sources 4.413 600 4,856.468 442 868 5,209,521
Federal sources:
Grants-in-aid 2,330,500 2,066,308 (264,192) 1 935.875
On behalf revenues 8,715,803 8 715 803 5,549,853
Total revenues 28.420, 100 37.446,173 9 026 073 30,353.441
Expenditures:
Current:
Instruction 16,016,090 23,191,896 (7,175,806) 21,184,272
Support services:
Pupils 1,624,800 1,526,364 98,436 1,574,248
Instructional staff 490,900 495,937 (5,037) 455,340
General administration 1,160,500 900,741 259,759 795,977
School administration 1,739,630 1,816,060 (76,430) 1,697,648
Business 1,824,500 1,835,085 ( I 0,585) 1,796,239
Central 1,158,000 1,067,424 90,576 1,103,781
Other 48 500 60 491 (11,991) 52,751
Total support services 8,046,830 7.702 102 344 728 7.475 984
Community services 148 100 182 08 L (33.981} 163 080
37
EDUCATIONAL FUND
2019 201~
Original
Intergovernmental:
Payments to other districts and government
units 1,300,000 1.628.445 (328,445) 1.125,325
Capital outlay 134 000 114 894 19 106 132.254
Total expenditures 25,645.020 32,819,418 (7,174.398) 30,080.915
Excess of revenues over expenditures 2,775,080 4,626,755 1,851,675 272,526
Other financing sources:

Transfers in 440 000 (440,000) 2.000.000
Net change in fund balances 3,215,080 4,626,755 1,411,675 2,272,526
Fund balances at beginning of year 7.071.977 7.071.977 4 799 451
Fund balances at end of year ~ 10.2 87,057 $ 11.698,732 ~ 1.411 ,675 $ 7 071 977
38
OPERATIONS AND MAINTENANCE FUND
JUNE 30, 2019
WITH COMPARATIVE ACTUAL AMOUNTS FOR JUNE 30, 2018
2019 2018
ASSETS
Equity in pooled cash and investments $ $ 1.254.119
LIABILITIES AND FUND BALANCE (DEFICIT)
Liabilities:
Due to other funds $ 194,863 $
Fund balance (deficit):

Unassigned (194,863) 1.254,119
Total liabilities and fund balance ( deficit) $ $ 1,254,119
39
BALANCES - MODIFIED CASH BASTS - BUDGET AND ACTUAL
WITH COMPARATTVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2018
2019 2018
Original
Revenues:
Local sources:
Property taxes $ 1,919,000 $ 1,903,062 $ (15,938) $ 1,818,242
Investment income 9,856
Other 50 000 66665 16 665 50.520
Total revenues 1 969 000 1,969,727 727 1,878,618
Expenditures:
Current:
Support services:
Business 3,329,500 3,207,450 122,050 3,215,096
Capital outlay 211.259 (211.259)
Total expenditures 3.329.500 3.418.709 (89.209) 3.215.096
Deficiency of revenues over expenditures (1.360.500) ( l.448.982) (88.482) (l.336.478)
Other financing sources (uses):

Transfers in 440,000 (440,000) 3,000,000
Transfers out (440,000) 440.000 (1.400.000)
Total other financing sources (uses) 1.600,000
Net change in fund balances (1,360,500) (1,448,982) (88,482) 263,522
Fund balances at beginning of year 1.254 119 1 254.119 990.597
Fund balance (deficits) at end of year $ (106,381) $ f 194.863l $ css,4&2l $ 1.254.119
40
TORTFUND
TORT FUND
JUNE 30, 2019
WITH COMPARATIVE AMOUNTS FOR JUNE 30, 2018
2019 2018
ASSETS
Equity in pooled cash and investments $ 3,764,228 $ 4.455,025
FUND BALANCES
Restricted $ 3,764,228 $ 4.455,025
41
TORT FUND
2019 2018
Original
Revenues:
Local sources:
Property taxes (county adjustment) $ $ (49,739) $ (49,739) $ 653,902
Investment income 83.436 83.436 65.202
Total revenues 33,697 33,697 719,104
Expenditures:
Current:
Support services:
General administration 340 000 724 494 (384.494) 178 777
Excess (deficiency) of revenues over expenditures (340,000) (690,797) (350,797) 540,327
Other financing uses:

Transfer out (440,000) 440 000
Net change in fund balances (780,000) (690,797) 89,203 540,327
Fund baJances at beginning of year 4.455.025 4.455.025 3.914.698
Fund balances at end of year $ 3.675.025 $ 3.764.228 $ 89,203 $ 4.455,025
42
WORKING CASH FUND
WORKING CASH FUND
JUNE 30, 2019
Wim COMPARATIVE AMOUNTS FOR JUNE 30, 2018
2019 2018
ASSETS
Equity in pooled cash and investments $ 2.614.568 $ 2,384,031
FUND BALANCES
Unassigned $ 2,614,568 $ 2,384,031
43
WORKING CASH FUND
SCHEDULE OF REVENUES AND CHANGES IN FUND BALANCES -
MODIFIED CASH BASIS - BUDGET AND ACTUAL
2019 2018
Original
Revenues:
Local sources:
Property taxes $ 173,000 $ 172,729 $ (271) $ 165,389
Investment income 57 808 57 808 34 889
Total revenues 173,000 230,537 57,537 200,278
FW1d balances at beginning of year 2,384,031 2,384.031 2,183,753
Fund balances at end of year $ 2,557,031 $ 2,614,568 $ 57,537 ~ 2,384,03 1
44
CAPITAL PROJECTS FUND
BALANCE SHEET- MODIFIED CASH BASIS
JUNE 30, 2019
2019 2018
ASSETS
Equity in pooled cash and investments $ 504,337 =$==50=2=.8.,a,12=
FUND BALANCES
Assigned $ 504,337 =$==50=2=,8=1=2
45
BALANCES (DEFICIT) - MODIFIED CASH BASIS - BUDGET AND ACTUAL
2019 2018
Variance with
Original Final Budget
and Final Positive
Budget Actual (Negative} Actual
Revenues:
Local sources:
lnvestment income $ $ 11,369 $ 11,369 $ 7,358
Expenditures:
Capital outlay 9.&44 (9.&44)
Excess of revenues over expenditures 1,525 1,525 7,35&
Other financing sources:

Transfers in 1 400.000
Net change in fund balances (deficit) 1,525 1,525 1,407,358
Fund balances (deficit) at beginning ofyaar 502,812 502,812 (904,546)
Fund balances at end of year $ 502,812 $ 504,337 $ 1,525 $ 502,812
46
SPECIAL REVENUE FUNDS
TRANSPORTATION FUND
TRANSPORTATION FUND
JUNE 30, 2019
2019 2018
ASSETS
Equity in pooled cash and investments $ 3,792.616 $ 4,140,421
FUND BALANCES
Assigned $ 3.792.616 $ 4,140.421
47
TRANSPORTATION FUND
2019 2018
Original
Revenues:
Local sources:
Property taxes $ 900,000 $ 771,185 $ (128,815) $ 2,473,850
Investment income 83,843 83,843 68,833
Other 5.000 5 000 265
Total local sources 900,000 860,028 (39,972) 2,542,948
State sources:
Grants-in-aid 838 000 1,405.586 567 586 995 561
Total revenues 1,738,000 2,265,614 527,614 3,538,509
Expenditures:
Current:
Support services:
Business 2.696,265 2613.419 82 846 2.561,715
Excess (deficiency) of revenues over expenditures (958,265) (347,805) 610,460 976,794
Other financing uses:

Transfers out (5.000.000)
Net change in fund balances (958,265) (347,805) 610,460 (4,023,206)
Fund balances at beginning of year 4.140.421 4,140,421 8,163.627
Fund balances at end of year $ 3, 182, 156 $ 3,792.616 ~ 610.460 $ 4.140.421
48
MUNICIPAL RETIREMENT/SOCIAL SECURITY FUND
JUNE 30, 2019
2019 2018
ASSETS
Equity in pooled cash and investments $ 5.214,835 $ 4.778,753
FUND BALANCES (DEFICIT)
Restricted $ 5,214,835 $ 5,405,453

Unassigned (626,700)
Total fund balances (deficit) $ 5,214,835 $ 4.778,753
49
2019 2018
Original
Revenues:
Local sources:
Property taxes $ 952,000 $ 1,204,112 $ 252,112 $ 1,547,145
Investment income 60,000 115,386 55,386 143,146
Other 5 000 5.000 5 000
Total revenues 1,017000 1,324,498 307 498 l 695 291
Expenditures:
Current:
Instruction 364 910 375 184 (10.274) 353 440
Support services:
Pupils 63,140 53,894 9,246 61,155
Instructional staff 15,500 12,021 3,479 15,086
General administration 15,500 16,601 (1,101) 14,722
School administration 48,700 55,535 (6,835) 47,188
Business 268,825 272,365 (3,540) 261,139
Central 84,215 81,798 2,417 81,668
Other 7 205 7,880 (675) 6.943
Total support services 503 085 500,094 2,991 487 901
Community services 15 350 13.138 2 212 14 933
Total expenditures 883 345 888.416 (5,071) 856 274
Excess of revenues over expenditures 133,655 436,082 302,427 839,017
Fund balances at beginning of year 4 778 753 4,778.753 3.939.736
Fund balances at end of year $ 4,912,408 $ 5.214.835 $ 302.427 $ 4.778.753
50
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET- MODIFIED CASH BASIS -
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2019
Capital Debt Service

Projects Fund Fund Total
Fire Nonmajor
Prevention Governmental
and Safetl'. Debt Services Funds
ASSETS
Equity in pooled cash and investments $ 2,542,5 l 7 $ 54,138 $ 2,596,655

Cash in escrow account 741 997 741 997
Total assets $ 2,542,517 $ 796, 135 $ 3,338,652
FUND BALANCES
Restricted $ 2,542,517 $ 796,135 $ 3,338,652
51
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - MODIFIED CASH BASIS -
NONMAJORGOVERNMENTALFUNDS
Capital Debt Service

Projects Fund Fund Total
Fire Nonmajor
Prevention Governmental
and Safetv Debt Services Funds
Revenues:
Local sources:
Property taxes (county adjustment) $ (12,003) $ 3,729,156 $ 3,717,153
Investment income 93 476 1 171 94 647
Total revenues 81,473 3 730 327 3.811,800
Expenditures:
Debt service:
Interest 1,659,353 1,659,353
Principal 2,190,647 2,190,647
Service fees on bonds 1,725 1,725
Total expenditures 3 851 725 3.851.725
Excess (deficiency) of revenues over expenditures 81,473 (121,398) (39,925)
Fund balances at beginning of year 2.461.044 917,533 3,378,577
Fund balances at end of year $ 2,542.517 $ 796.135 $ 3.338.652
52
FIRE PREVENTION AND SAFETY FUND
JUNE 30, 2019
2019 2018
ASSETS
Equity in pooled cash and investments $ 2,542,517 $ 2.461.044
FUND BALANCES
Restricted $ 2.542.517 $ 2.461.044
53
2019 2018
Original
Revenues:
Local sources:
Property taxes (county adjustment) $ $ (12,003) $ (12,003) $ 157,835
Investment income 25.000 93.476 68 476 36 021
Total revenues 25,000 81,473 56,473 193,856
Expenditures:
Capital outlay 100.000 100.000
Excess (deficiency) of revenues over expenditures (75,000) 81,473 156,473 193,856
Fund balances at beginning of year 2,461,044 2,461,044 2,267,188
Fund balances at end of year $ 2,386,044 ~ 2,542,517 ~ 156,473 l 2,461,044
54
DEBT SERVICES FUND
DEBT SERVICES FUND
JUNE 30, 2019
2012 2018
ASSETS
Equity in pooled cash and investments $ 54,138 $ 213,395

Cash in escrow account 741,997 704.138
Total assets $ 796,135 ~ 917,533
FUND BALANCES
Restricted $ 796, l3 5 =$=====91=7=,5=33=
55
DEBT SERVICES FUND
2019 2018
Original
Revenues:
Local sources:
Property taxes $ 3,689,000 $ 3,729,156 $ 40,156 3,578,005
Investment income 1 171 1.171 2 696
Total revenues 3,689,000 3,730.327 41 327 3.580.701
Expenditures:
Debt service:
Interest 1,659,354 1,659,353 1,467,767
Principal 2,190,647 2,190,647 2,284,482
Service fees on bonds 2 500 1 725 775 2 292
Total expenditures 3,852.501 3,851,725 776 3 754 541
Deficiency of revenues over expenditures (163,501) (121,398) 42,103 (173,840)
Fund balances at beginning of year 917 533 917 533 1,091.373
Fund balances at end of year $ 754.032 $ 796,135 ~ 42.l03 917 533
56
FIDUCIARY FUND
STUDENT ACTIVITY AGENCY FUND
STUDENT ACTIVITY AGENCY FUND
SCHEDULE OF CHANGES IN FIDUCIARY ASSETS AND
LIABILITIES - MODIFIED CASH BASIS
Balance at
Beginning Balance at
of Year Additions Deletions End of Year
ASSETS
Cash $ 13.911 i 45,316 $ (37.633) $ 21.594
LIABILITIES
Due to student activity fund

organizations $ 13.911 $ 45.316 $ (37,633) =$======2=1=.5=94=
57
SUPPLEMENTARY INFORMATION
SCHEDULE OF EXPENDITURES - MODIFIED CASH BASIS - ACTUAL AND BUDGET
Supplies
Employee Purchased and
Salaries Benefits Services Materials
Educational Fund:
Instruction:
Regular programs $ 8,661,304 $ 2,690,129 $ 132,507 $ 201,158
Special education programs 1,765,132 535,649 1,369 129,283
Interscholastic programs 5,675 41 8,725 11,147
Summer school programs 10,570 60
Gifted programs 4,788 3,937
Bilingual programs 2,087
Special education tuition - private
On behalf expenditures 8,715,803
Total instruction 10.442,681 11.941,682 147 389 347,612
Support services:
Pupils:
Attendance and social work services 200,394 29,714
Guidance services 2,088
Health services 176,731 84,120 76,789 6,652
Psychological services 192,167 72,942 775 ! ,921
Speech pathology and audiology
serv1ces 205,879 68,506 3,554 10,064
Other support services - pupils 113 367 64 907 214 758
Total pupils 888,538 320 189 295 876 20 725
Instructional staff:
Improvement of instruction services 131,990 17,896 101,031 11,801
Educational media services 867 22,796
Assessment and testing 130944 40,826 37 032 44
Total instructional staff 262.934 58.722 138,930 34.641
General administration:
Board of Education services 124,112 14,754
Executive administration services 332,242 56,736 11,143 7,791
Tort immunity services 314 234
Tota! general administration 332,242 56 736 449 489 22,545
58
Non-
Capital Other Capitalized Termination Totals
Outlay Objects Equipment Benefits Actual Budget Variance
$ 3,967 $ 77,235 $ - $ - $ 11,766,300 $ 13,527,490 $ 1,761,190

12,066 2,443,499 2,410,200 (33,299)
2,555 28,143 36,100 7,957
10,630 44,300 33,670
8,725 4,500 (4,225)
1,082 3,169 (3,169)
232,742 232,742 (232,742)
8.715,803 (8,715,803)
17 115 312,532 23,209,011 16,022,590 (7.186.421}
230,108 344,000 113,892

2,088 2,500 412
344,292 343,800 (492)
267,805 293,500 25,695
1,036 289,039 308,500 19,461

393,032 332,500 (60,532)
1.036 1,526,364 1,624,800 98.436
710 263,428 465,800 202,372

6,423 30,086 28,600 (1,486)
208 846 2 000 (206.846)
6.423 710 502.360 496.400 (5.960)
35,047 173,913 135,000 (38,913)

4,682 412,594 335,500 (77,094)
314.234 690 000 375 766
39.729 900 741 l, 160,500 259 759

( continued)
59
Supplies
School administration:
Office of the principal services 1,015,070 303,750 l,613 2,463
Other 404 689 81.135 5.165
Total school administration 1,419,759 384.885 6 778 2 463
Business:
Direction of business support services 291,762 47,713 4,954
Fiscal services 130,372 27,289 119,223 162
Pupil transportation services
Food services 389,834 60,122 618,173
Internal services 98.369 36 481
Total business 811,968 135 124 840 719 36.643
Central:
Direction of central support services 4,125 18
Data processing services 320, 140 64,951 34,763 338,174
Staff services 196 906 41 273 33.502 2 204
Total central 521,171 106.242 68.265 340 378
Other support services 47.167 13.324
Total support services 4 283 779 1,075.222 1,800,057 457 395
Community services 110 669 51.048 7.720 12 169
Payments to other districts and government

units:
Payments for special education
programs 3 310
Total Educational Fund $ 14.837,129 i 13,067,952. $ 1,958,476 ~ 817.1 76
60
Non-
Outlay Obiects Equipment Benefits Actual Budget Variance
2,17S 1,325,071 1,259,630 (65,441)

490,989 480.000 (10.989)
2 175 1,816,060 1.739.630 {76,430)
260 344,689 371,300 26,611

10,371 287,417 227,000 (60,417)
4,000 4,000
19,422 1,087,551 1,156,200 68,649
134 850 108,000 {26,850)
19 422 10 631 1,854,507 1,866,500 11.993
4,143 4,000 (143)

71,934 31,368 861,330 987,000 125,670
273 885 247 000 (26,885)
71 934 3L368 Ll39.358 1,238.000 98.642
60.491 48 500 0 1,991)
97 779 54,281 31.368 7,799,881 8 L74 330 374 449
475 182,081 148.100 (33.981)
1.625.135 1,628.445 1,300.000 (328,445)
$ 114.894 $ 1,992,423 $ 31,368 =$====- $ 32,819,418 $ 25,645,020 $ (7,174,398)

( continued)
61
YEAR ENDED JUNE 30,2019
Supplies
Operations and Maintenance Fund:

Support services:
Business:
Operation and maintenance of plant
senr1ces $ 1,006,066 $ 261,919 $ 1,169.867 =$==
76=9==
,5=9=
8
Tort Fund:
Support services:
Insurance payments $ - $ - $ 245,387 $
Educational, inspectional, supervisory
services related to loss prevention
or reduction
Total Tort Fund =$=== =- =-

$-======- $ 245,387 =la.$====

Support services:
Facilities acquisition and construction
services $ $ $ $
Transportation Fund:
Support services:
Business:
Pupil transportation services =$====- =$=====- $ 2,613,419 =$====
Municipal Retirement/Social Security Fund:
Instruction:
Regular programs $ $ 207,311 $ - $
Special education programs 166,678
Interscholastic programs 492
Summer school programs 703
Total instruction 375 184
62
Non-
Outlay Objects Equipment Benefits Actual Budget Variance
$ $ ====- =$====- $ 3,418,709 $

211,259 =$==--=- ~ 3,329,500 ~$====1:(~89=!:,2g0~9)
$ - $ - $ - $ - $ 245,387 $ 240,000 $ (5,387)
479 107 479 107 100.000 (379.107)
=$====- $ 479J 07 =-$--===- =$====- $ 724,494 $ 340.000 =$==(=3=84=,4=9~4)
=$======9===.8===44_ $ - -=$====- =$====- $ 9,844 $ - =$===(9=.8=44...,.)
=$====- =$==--===- $= ====- =$====- $ 2.613.419 $ 2,696.265 =$===82=,8=4==-6
$ - $ - $ - $ - $ 207,311 $ 194,600 $ (12,711)

166,678 164,700 (1,978)
492 1,805 1,313
703 3 805 3 102
375. I 84 364 910 (10,274)

(continued)
63
Supplies
Employee Purchased and .,
Support services:
Pupils:
Attendance and social work services 2,876
Health services 27,793
Psychological services 2,907
Speech pathology and audiology
services 2,914
Other support services - pupils 17 404
Total pupils 53 894
Instructional staff:
Improvement of instruction services 9,885
Assessment and testing 2J36
Total instructional staff 12.021
Executive administration services 16 601
School administration:
Office of the principal services 42,412
Other 13,123
Total school administration 55 535
Business:
Direction of business support services 34,719
Fiscal services 21,860
Operation and maintenance of plant
services 162,219
Food services 53 567
Total business 272,365
64
Non-
Outlay Objects Equipment Benefits Actual Variance
2,876 4,300 1,424

27,793 34,400 6,607
2,907 3,200 293
2,914 3,400 486

17.404 17.840 436
53 894 63 140 9 246
9,885 15,500 5,615

2 136 (2,136)
12 021 15.500 3 479
16 601 15.500 (1,101)
42,412 35,800 (6,612)

13 123 12 900 (223)
55.535 48.700 (6,835)
34,719 29,350 (5,369)

21,860 20,325 (1,535)
162,219 165,000 2,781

53 567 54.150 583
272,365 268.825 (3.540)

(continued)
65
Supplies
Employee Purchased and I
Central:
Direction of central support services 666
Data processing services 50,334
Staff services 30.798
Total central 81 798
Other support services 7.880
Total supp01t services 500 094
Community services 13 138
Total Municipal Retirement/

Social Security Fund $ - $ 888,416 $ $
Fire Prevention and Safety Fund:
Support services:
Facilities acquisition and construction
services $ $ - $ - $
Debt Services Fund:
Debt service:
Interest $ - $ - $ - $
Principal
Service fees on bonds
Total Debt Services Fund $ - $ - $ - $
Total expenditures $ 15,843,195 $ 14.218.287 $ 5.987.149 $ 1,586,774
Sec independent auditor's report.
66
Non-
Outlav Objects Equipment Benefits Actual Budget Variance
666 765 99
50,334 52,050 1,716
30.798 31 400 602
81 798 84 215 2.417
7.880 7.205 (675)
500 094 503,085 2 991
13_ 13 8 15350 2.212
$ - $ - $ - $ - $ 888.416 $ 883,345 $ (5 1011 l
=$====- ==$====- =$====- _$====- ==$=== =- $ 100,000 =$====1=00...,0=0==0
$ - $ 1,659,353 $ - $ - $ 1,659,353 $ 1,659,354 $ l

2,190,647 2,190,647 2,190,647
1.725 1.725 2.500 775
$ - $ 3,851.725 $ - $ - $ 3,851,725 $ 3.852.501 $ 776
$ 335,997 $ 6.323.255 $ 3 J .368 $ - $ 44.326.025 $ 36,846.63 1 $ (7,479.394)

( coneluded)
67
OTHER INFORMATION SECTION
EMPLOYEE RETIREMENT PLAN INFORMATION
TEACHERS' RETIREMENT SYSTEM OF THE STATE OF ILLINOIS
JUNE 30, 2019
SCHEDULE OF THE DISTRICT'S PROPORTIONATE

SHARE OF THE NET PENSION LIABILITY
June 30, 2018 June 30, 2017 June 30, 2016
District's proportion of the net pension liability 0.00171 % 0.00953 % 0.00868 %
District's proportionate share of the net pension liability $ l,332,772 $ 7,281,304 $ 6,851,873
State's proportionate share of the net pension liability

associated with the District 91.300.400 90,185,384 70,361,056
Total net pension liability $ 92.633.172 $ 97,466.688 $ 77,212,929

District's covered payroll $ 12,315,440 $ 12,171,806 $ 11,903,684
District's proportionate share of the net pension liability

as a percentage of its covered payroll 10.82 % 59.82 % 57.56 %
Plan fiduciary net position as a percentage of the total

pension liability 40.00 % 39.30 % 36.40 %
The above information is the most current information available.
68
June 30. 2015 June 30, 2014
0.00892 % 0.00832 %
$ 5,261,901 $ 5,431,569
96,070.538 72,845,058
$ 101,332.439 $ 78,276.627
$ 11,781,593 $ 11,885,084
44.66 % 45.70 %
4l.50 % 43.00 %
69
ILLINOIS MUNICIPAL RETIREMENT FUND
JUNE 30, 2019
SCHEDULE OF NET PENSION LIABILITY AND RELATED RATIOS
Total Plan
Calendar Pension Fiduciary Net Pension PFNP asa Covered NPL as a
Year Ended Liability Net Position Liability Percentage Payroll Percentage
December 31. (TPL) (PFNP) (NPL} ofTPL (CP) ofCP
2018 $ 12,447,056 $ 10,700,145 $ 1,746,911 85.97 % $ 4,204,519 41.55 %
2017 11,021,774 10,994,309 27,465 99.75 3,959,550 0.69
2016 10,671,726 9,404,247 1,267,479 88.12 4,077,346 3 J.09
2015 9,843,751 8,466,413 1,377,338 86.01 3,855,788 35.72
2014 9,221,062 8,410,908 810,154 91.21 3,775,475 21.46
SCHEDULE OF CONTRIBUTIONS
Actuarially Actual Contribution Covered AC as a

Fiscal Year Ended Determined Contribution Deficiency Payroll Percentage
June 30, Contribution (AC} <E~cess) (CP} ofCP
2019 $ 386,511 $ 386,511 $ - $ 4,419,848 8.74 %
2018 380,l06 380,106 3,900,233 9.75
2017 405,301 405,301 4,093,986 9.90
2016 406,813 406,813 3,948,816 10.30
2015 383,966 383,966 3,915,359 9.81
70
TEACHER HEALTH INSURANCE SECURITY FUND
SCHEDULE OF THE DISTRICT'S PROPORTIONATE

SHARE OF THE TOTAL OPEB LIABILITY
JuM30.2018 Junc30.2017
District's proportion of the total OPEB liability 0.052064 % 0.052999 %
District's proportionate share of the total OPEB liability $ 13,716,752 $ 13,752,900
State's proportionate share of the total OPEB liability associated

with the District 18.418.640 18.060,975
Total OPEB liability $ 32.135,392 $ 31.813,875
District's covered payroll $ 12,315,440 $ 12,171,806
District's proportionate share of the total OPEB liability as a

percentage of its covered payroll 111.38 % 112.99 %
Plan fiduciary net position as a percentage of the total OPEB liability 0.00 % 0.00 %
The above information is the most current infonnation available.
71
SINGLE AUDIT SECTION
~ MLIElLER & Co, LLP
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

Matteson, Illinois
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, each major fund, and the aggregate remaining fund information of Elementary School District
159 as of and for the year ended June 30, 2019, and the related notes to the financial statements, which
collectively comprise Elementary School District 159's basic financial statements and have issued our
report thereon dated January 30, 2020.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered Elementary School
District 159's internal control over financial reporting (internal control) to determine the audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of Elementary School
District 159's internal control. Accordingly, we do not express an opinion on the effectiveness of
Elementary School District 159's internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and
was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have
not been identified. However, as described in the accompanying schedule of findings and questioned costs,
we did identify certain deficiencies in internal control that we consider to be material weaknesses and
significant deficiencies.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of
the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. We
consider the deficiencies described in the accompanying schedule of findings and questioned costs (items
2019-002 through 2019-007) to be material weaknesses.
72
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance. We consider the deficiency described in the accompanying schedule of findings and
questioned costs (item 2019-001) to be a significant deficiency.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Elementary School District 159's financial
statements are free from material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a
direct and material effect on the determination of financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters
that are required to be reported under Government Auditing Standards.
Elementary School District 159's Responses to the Findings
Elementary School District 159's responses to the findings identified in our audit are described in the
accompanying schedule of findings and questioned costs. Elementary School District 159's responses were
not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly,
we express no opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.

January 30, 2020
73
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
~ MLIElLER & Co, LLP
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH

MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE

Matteson, Illinois
Report on Compliance for Each Major Federal Program
We have audited Elementary School District 159's compliance with the types of compliance requirements
described in the OMB Compliance Supplement that could have a direct and material effect on each of
Elementary School District 159's major federal programs for the year ended June 30, 2019. Elementary
School District 159's major federal programs are identified in the summary of auditor's results section of
the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions
of its federal awards applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of Elementary School District 159's
major federal programs based on our audit of the types of compliance requirements referred to above. We
conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements referred to above that could have a direct and material effect on
a major federal program occurred. An audit includes examining, on a test basis, evidence about Elementary
School District 159's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination of Elementary School District 159's
compliance.
74
Opinion on Each Major Federal Program
In our opinion, Elementary School District 159 complied, in all material respects, with the types of
compliance requirements referred to above that could have a direct and material effect on each of its major
federal programs for the year ended June 30, 2019.
Other Matters
The results of our auditing procedures disclosed an instance of noncompliance which is required to be
reported in accordance with the Uniform Guidance and which is described in the accompanying schedule
of findings and questioned costs as item 2019-014. Our opinion on each major federal program is not
modified with respect to this matter.
Elementary School District 159's response to the noncompliance finding identified in our audit is described
in the accompanying schedule of findings and questioned costs. Elementary School District 159's response
was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we
express no opinion on the response.
Report on Internal Control over Compliance
Management of Elementary School District 159 is responsible for establishing and maintaining effective
internal control over compliance with the types of compliance requirements referred to above. In planning
and performing our audit of compliance, we considered Elementary School District 159's internal control
over compliance with the types of requirements that could have a direct and material effect on each major
federal program to determine the auditing procedures that are appropriate in the circumstances for the
purpose of expressing an opinion on compliance for each major federal program and to test and report on
internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not
express an opinion on the effectiveness of Elementary School District 159's internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material
weakness in internal control over compliance, yet important enough to merit attention by those charged
with governance.
75
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies and therefore, material
weaknesses or significant deficiencies may exist that have not been identified. We did identify certain
deficiencies in internal control over compliance, described in the accompanying schedule of findings and
questioned costs as items 2019-009 through 2019-013, that we consider to be material weaknesses and
another deficiency in internal control over compliance, described in the accompanying schedule of
findings and questioned costs as item 2019-008, that we consider to be a significant deficiency.
Elementary School District 159's responses to the internal control over compliance findings identified in
our audit are described in the accompanying schedule of findings and questioned costs. Elementary School
District 159's responses were not subjected to the auditing procedures applied in the audit of compliance
and, accordingly, we express no opinion on them.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.

January 30, 2020
76
Pass-through
Federal Entity Passed Total
Federal Grantor/ Pass-through Grantor/ CFDA Identifying Through to Federal
Program or Cluster Title Number Number Subrecipients Expenditures
Special Education Cluster (IDEA):

Department of Education Programs:
Southwest Cook County Cooperative
Association for Special Education:
IDEA Flow-through 84.027 19-4620 $ - $ 499,410
Pre-School Flow-through 84.173 19-4600 12 843
Total Special Education Cluster

(IDEA) 512,253
Child Nutrition Cluster:

Department of Agriculture Programs:
Illinois State Board of Education:
National School Lunch (M) 10.555 18-4210 115,823
National School Lunch (M) l0.555 19-4210 449,359
Commodities (noncash) (M) l0.555 2019 37,143
DOD Commodities (noncash) (M) l0.555 2019 45 733
Total for program 648,058
School Breakfast (M) 10.553 18-4220 39,.803

School Breakfast (M) 10.553 19-4220 153,525
Total for program 193 328
Total Child Nutrition Cluster 841.386
Department of Education Programs:

Title I - Low Income 84.010 18-4300 12,212
Title I - Low Income 84.010 19-4300 536.355
Total Title T - Low Income 548.567
Title 11- Teacher Quality 84.367 19-4932 23.122
Title III - Language 84.365 19-4909 5.317
Title IVA - Support & Enrichment 84.365 18-4400 2,088

Title IV A • Support & Enrichment 84.424 19-4400 8.778
Total Title IVA 10.866
See independent auditor's report and notes to schedule of expendiru.res of federal awards.
77
Pass-through
Federal Entity Passed Total
Federal Grantor/ Pass-through Grantor/ CFDA Identifying Through to Federal
Program or Cluster Title Number Number Subrecipicnts Expenditures
Total Department of Education

Programs 587 872
Department of Agriculture
NSLP Equipment Assistance 10.579 19-4260 19.422
Total expenditures of federal awards .,.$====- ==l.=96=0=.9=33=

.!i:$
(M) - Major program
See independent auditor's report and notes to schedule of expenditures of federal awards.
78
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AW ARDS
NOTE 1. BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards includes the federal grant activity of
Elementary School District 159 (District) and is presented on the modified cash basis of accounting. The
infonnation in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of
Federal Regulations Pait 200, Unfform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the preparation of, the basic financial
statements.
NOTE 2. INDIRECT FACILITIES AND ADMINISTRATION COSTS
The District has elected not to use the IO-percent de minim is cost rate.
NOTE 3. NONCASH ASSISTANCE
Noncash assistance expended by the District amounted to $82,876 for commodities passed through the
Illinois State Board of Education.
NOTE 4. OTHER INFORMATION
Insurance coverage in effect paid with federal funds during the fiscal year amounted to zero.
Loans/loan guarantees outstanding at June 30, 2019 amounted to zero.
The District had no federal grants requiring matching expenditures during the year ended June 30, 2019.
79
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Section I - Summary of Auditor's Results
Financial Statements
Type of auditor's report issued: UNMODIFIED
Internal control over financial reporting:
• Material weaknesses identified? _x_ Yes _ _ Nonereported
• Significant deficiencies identified that are not

considered to be material weaknesses? ....x_ Yes None reported
• Noncompliance noted? Yes ..1L No
Federal Awards
Internal control over major programs:
• Material weaknesses identified? ..1L Yes _ _ None reported
• Significant deficiencies identified that are not

considered to be material weaknesses? _x_ Yes _ _ None reported
Type of auditor's report issued on compliance for

major programs: UNMODIFIED
Any audit findings disclosed that are required to be

reported in accordance with §200.516 (a)? _x_ Yes No
Identification of major programs:
CFDA N umber(s) Name of Federal Program or Cluster

Child Nutrition Cluster:
10.555 National School Lunch &
Commodities
1. 0.553 School Breakfast
Dollar threshold used to distinguish between Type A and

Type B programs: $750,000
Auditee qualified as low-risk auditee? Yes _x_ No
80
Page 43 Page 43

07-016-1590-02
Vear Ending June 30, 2019
SECTION II - FINANCIAL STATEMENT FINDINGS
1. FINDING NUMBER:
11
2019- 001 2. THIS FINDING IS: D New 0 Repeat from Prior Vear?
Vear originally reported? 2010
3. Criteria or specific requirement

Preparation of financial statements.
4. Condition
Management does not prepare government-wide financial statements in accordance with GASB Statement No. 34.
S. Contextu
Material year-end adjusting journal entries were made as part of the preparation of government-wide financial statements in
accordance with GASB Statement No. 34.
6. Effect
Users of unaudited financial statements are not viewing government-wide financial statements in accordance with GASB
Statement No. 34.
7.Cause
Closing procedures do not include the preparation of government-wide financial statements in accordance with GASB
Statement No. 34.
8. Recommendation
Management's closing procedures should include the preparation of government-wide financial statements in accordance
with GASB Statement No. 34.
9. Management's responseu
Management disagrees with the recommendation.
A suggested format for assigning reference numbers is to use the digits of the fiscal year being audited followed by a numeric
sequence of findings. For example, findings identified and reported in the audit of fiscal year 2018 would be assigned a reference
number of 2018-001, 2018-002, etc. The sheet is formatted so that only the number need be entered (1, 2, etc.).
12
Provide sufficient information for judging the prevalence and consequences of the finding, such as relation to universe of costs and/or
number of items examined and quantification of audit findings in dollars.
13
See §200.521 Monogement decision for additional guidance on reporting management's response.
81
Page 43 Page 43

07-016-1590-02
Year Ending June 30, 2019
1. FINDING NUMBER:11 2019- 002 2. THIS FINDING IS: D New 0 Repeatfrom Prior Vear?

Cash disbursement and credit card transactions require authorized written approval and supporting documentation.
Additionally, credit cards should be updated to remove terminated employees.
4. Condition
Certain cash disbursement and credit card transactions were paid without written approval or supporting documentation.
Additionally, active credit cards are still in the names of former employees.
12
5. ConteMt
Audit testing revealed cash disbursement and credit card transactions were paid without proper supporting documentation
or approval. Also, credit cards are still active for former employees.
6. Effect
Misstatement or misappropriations could go undetected.
7. Cause
District is not adhering to its policies and procedures for cash disbursement and credit card transactions.
8. Recommendation
All cash disbursement and credit card transactions should have appropriate supporting documentation, as well as written
approval and form of cancellation to prevent duplicate processing. Credit cards should only be active for current approved
employees and updated immediately to reflect any changes in District personnel.
9. Management's response"
Management agrees with the recommendation.
11
number of 2018-001, 2018-002., etc. The sheet is formatted so that only the number need be entered (1, 2, etc.).
12
13
See §200.521 Management decision for additional guidance on reporting management's response.
82
Page 43 Page43

07-016-1590-02
SECTION U - FINANCIAL STATEMENT FINDINGS
1. FINDING NUMBE'R:u 2019- 003 2. THIS FINDING IS: D New 0 Repeat from Prior Year?
Year originally reported? 2010

Personnel files should contain properly completed Form 1-9 Employee Eligibility Certifications. Additionally, approved wage
rate information and extraordinary pay or payroll adjustment information should be retained In personnel files.
4. Condition
Personnel files did not have properly completed Form 1-9 Employee Eligibility Certifications. Approved wage rate
information, extraordinary pay, and payroll adjustment for "retro" pay documentation could not be located.
5. Contextn
Audit t esting revealed several instances where personnel files had improper or missing Form 1-9 Employee Eligibility
Certifi cations along with approved wage rates. Addit ionally, there was no evidence to support hretro" pay made to non-
certified employees.
6 . Effect
The District is exposed to potential problems for employing illegal personnel in addition to issues regarding proper payroll
expenditures.
7. Cause
Forms 1-9 were not completed correctly, approved pay rates were not placed in personnel files and
authorization/documentation for "retro" pay was not retained.
8. Recommendation
Forms 1-9 should be completed correctly and all personnel files should include documentation of approved wage/salary rates
and payroll adjustments.
9. Manaeement's responsen
11
sequence of findings. For example, findings identified and reported in the audit of fiscal year 2018 would be .;ssigned a reference
number of 2018-001, 2018·002, etc. The sheet is formatted so that only the number need be entered (1, 2, etc.).
12
number of item~ examined and quantification of audit findings in dollars.
13
See §200.521 Management decision for additional guidance on reporting management's response.
83
Page 43 Page 43

07-016-1590-02
SCHEDULE OF FINDINGS ANO QUESTIONED COSTS
1. FINDING NUMSE'R:11 2019- 004 2. THIS FINDING IS; D New 0 Repeat from Prior Year?

Time cards supporting payroll activity are to be retained on file.
4. Condition
Time cards are not properly retained by the payroll department.
2
5. Context1
Certain time cards were not properly retained by the payroll department.
6. Effect
Misstatement or misappropriation could go undetected.
7. Cause
Time cards were not retained.
8. Recommendation
District should retain on file all documentation supporting payroll activities.
9. Management"s response11
12
Provide sufficient Information for judging the prevalence and consequences of the finding, such as relation to universe of costs and/or
" See §200.521 Management decision for additional guidance on reporting management's response.
84
Page 43 Page 43

07-016-1590-02
SCHEDULE OF FINDINGS ANO QUESTIONED COSTS

------------------------- --- ---
1. FINDING NUMBER:
11
2019· 005 2. THIS FINDING IS: D New 0 Repeat from Prior Year?
Year origlnally reported? 2018

General ledger cash balances should reflect current activity.
4. Condition
One of the District's cash accounts has several outstanding checks over one year old.
12
S. Context
In testing cash balances, one account had outstanding checks originating over a year ago.
6. Effect
District may not be current with its vendors or may have made duplicate payments.
7. Cause
District is not staying current on monitoring available funds.
8. Recommendation
District should investigate all old outstanding checks for proper handling.
13
9. Management's response
1
sequence of finding~. For example, findings identified and reported in the audit of fiscal year 2018 would be assigned a reference
12
Provide sufficient information for judging the prevalence and consequences of the finding, such as relation to universe of costs and/ or
number of items exami ned and quantification of audit findings in dollars.
13
See §200.521 Monagement decis ion for additional guida nee on reporting management's response.
85
Page 43 Page 43

07-016-1590-02
Year Endi ng June 30, 2019
SECTION II - FINANQAL STATEMENT FINDINGS
1. FINDING NUMBER:
11
2019· 006 2. THIS FINDING IS: 0 New D Repeat from Prior Year?
Year originally reported?

Review of payroll processing and recording.
4. Condition
The District became aware of many instances of employee benefits not being administered as intended and requested by
employees. Additionally, inconsistencies were noted in wage reporting t o the ret irement plan for certified staff.
Inconsistencies in recording of payroll transactions were noted between the books of account, payroll system reports and
quarterly payroll reports prepared and submitted.
12
5. Context
Accuracy of payroll paid, reported and recorded.
6. Effect
Employees who may have requested certain employee benefits may not actually have coverage in the event of an incident.
Certified individuals may not ultimately receive t he correct pension to which they are entitled at retirement . Payr oll
processing and recording may not be accurate by individual employee or district-wide.
7 . Cause
Payroll processing and recording is not monitored to discover errors as they occur.
8 . Recommendation
We recommend that the systems for payroll processing and recording be critically reviewed and corrected. Additionally, we
recommend t hat a reconcil iation bet ween t he books of account, payroll system reports and quarterly payroll reports be
prepared to identify any discrepancies in a timely manner.
9. Management's response"
Management agrees with this recommendation.
11
A suggested format for assigning reference numbers is to use t he digit s oft he fiscal year being audited followed by a numeric
sequence of findings. For example, findings ident ified and reported in the audit of fiscal year 2018 would be assigned a reference
num ber of 2018-001, 2018-002, etc. The sheet is formatted so that only the num ber need be entered (1, 2, etc.).
12
Provide sufficient information for judging the prevalence and consequences of t he finding, such as relation t o universe of costs and/ or
13
See §200.521 M anagemen t decision for addit ional guidance on reporting management's response.
86
Page 43 Page 43

07-016-1590-02
SECTION 11- FINANCIAL STATEMENT FINDINGS
1. FINDING NUMBER:
11
2019- 007 2. THIS FINDING IS: 0 New D Repeat from Prior Year?

Loans between funds.
4. Condition
The Operations and Maintenance fund had a negative cash balance on the books at year end.
12
5. Co ntext
An adjusting entry was required to record an unauthorized loan from the Educational Fund to the Operations and
Maintenance Fund to eliminate a negative cash balance.
6. Effect
The loan was made between funds without Board approval.
7.Cause
Management is not obtaining Board approval to loan funds to eliminate negative cash balances.
8. Recommendation
Management should obtain Board approval for loans between funds.
13
Management agrees with this recommendation .
12
13
See §200.521 Manogernent decision for additional guidance on reporting management's response.
87
Page 44 Page 44
07-016-1590-02
SECTION Ill • FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
1. FINDING NUMBER:
14
2019- 008 2. THIS FINDING IS: D New W Repeat from Prior year?
3. Fedl!ral Program Name and Yl!ar: All Federal Programs
4. Project No.: 5. CFDA No.:
6. Passed Through:
7. Federal Agency:
8. Criteria or specific requirement (intluding statutory, regulatory, or other citation)

Preparation of financial statements. See financial statement finding #2019-001.
15
9. Condition
16
10. Questioned Costs
NONE
17
11. Context
12. Effect
13. Cause
14. Recommendation
18
1S. Management's response
14
See footnote 11.
., Include facts that support the deficiency identified on the audit finding (§200.515 (b)(3)).
1
• Identify questioned costs as required by §200.516 (a)(3 - 4).
17
See footnote 12.
'" To the eKtent practical, indicate when management does not agree with the finding, questioned cost, or both.
88
Page44 Page 44
07-016-1590-02
Vear Ending June 30, 2019
SECTION Ill- FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
1. FINDING NUMBER:
14
2019- 009 2. THIS FINDING IS: D New ~ Repeat from Prior year?
3. Federal Program Name and Year: All Federal Programs
4. Project No.: 5.CFDA No.:
6. Passed Through:
7. Fede ra I Agency:
8. Criteria or specific requirement (including statutory, regulatory, or other citation)

Cash disbursement and credit card transactions require authorized written approval and supporting documentation.
Additionally, credit cards should be updated to remove terminated employees. See financial statement finding #2019-002.
9. Condition"
10
NONE
11
11. Context
12. Effect
13.Cause
14. Recommendation
18
14
See footnote 11.
,, Include facts that support the deficiency identified on the audit finding (§200.516 (b)(3)).
16
Identify questioned costs as requlred by §200.516 (al(3 - 4 ).
17
See footnote 12.
rn To the extent practical, indicate when management does not agree with the finding, questioned cost, or both.
89
Page 44 Page 44
07-016-1590-0Z
SECTION 111- FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
1. FINDING NUMBER: 14 2019- 010 2. Tl-US FINDING IS: D New W Repeat from Prior year?
4. Project No.: 5. CFDA No.:
6. Passed Thro ugh:

7. Federal Agency:

Personnel files should contain properly completed Form 1-9 Employee Eligibility Certifications. Additionally, approved wage
rate information and extraordinary pay or payroll adjustment information should be retained in personnel files. See financial
statement finding #2019-003.
15
9. Condftion
16
NONE
17
11. Context
12. Effect
13.Cause
14. Recommendation
18
14
See footnote 11.
'" Include facts that support the deficiency identified on the audit finding (§200.S 16 (b)(3)).
1
• Identify questioned costs as required by §200.516 (al(3- 4).
11
See footnote 12.
18
To the extent practical, indicate when management does not agree with the finding, questioned cost, or both.
90
Page 44 Page 44
07-016-1590-02
SECTION 111 - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
1. FINDING NUMBER:
14
2019- 011 2. THIS FINDING IS: D New 0 Repeat from Prior year7
3. Federal Program Name and Vear: All Federal Programs
4. Project No.: S.CFDA No.:
6. Passed Through:
7. Federal Agency:

Time cards supporting payroll activity are to be retained on file. See financial statement finding #2019-004.
9.Condltlon15
16
NONE
17
11. ConteKt
12. Effect
13. Cause
14. Recommendation
15. Management's response18
14
See footnote 11.
., Include facts that support the deficiency identified on the audit finding (§200.516 (bl(3)).
•• Identify questioned costs as required by §200.516 (a)(3 - 4).
17
See footnote 12.
'" To the extent practical, indicate when management does not agree with the finding, questioned cost, or both.
91
Page 44 Page 44
07-016-1590-0Z
SECTION Ill· FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
1. FINDING NUMBER:
14
2019- 012 2. THIS FINDING IS: D New W Repeat from Prior year?
6. Passed Through:
7. Federal Agency:

General ledger cash balances should reflect current activity. See financial statement finding #2019-005.
15
9. Condltion
16
NONE
17
11. Context
12. Effect
13. Cause
14- Recommendation
18
15- Management's response
14
See footnote 11.
,, Include facts that support the deficiency identified on the audit findjng (§200.516 (b)(3)).
1
• Identify questioned costs as required by §Z00.516 (al(3 - 4).
17
See footnote 12.
92
Page 44 Page 44
07•016·1590·02
SECTION Ill· FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
1. FINDING NUMBER:
14
2019- 013 2. THIS FINDING IS: W New D Repeat from Prioryear?
3. Federal Program Name and Vear: All Federal Programs
6. Passed Thro ugh:

7. Federal Agency:
8. Criteria or speclflc requirement (Including statutory, regulatory, or other citation)

Review of payroll processing and recording. See financial statement finding #2019---006.
9. condition"
------------------------------ --------
16
NONE
7
11. context1
12. Effect
13.cause
14. Recommendation
19
14
See footnote 11.
., Include facts that support the deficiency identified on the audit finding (§200.516 (b)(3J).
1
• Identify questioned costs as required by §200.516 {a)(3 - 4).
17
see footnote 12.
93
Page 44 Page 44
07•016·1S90-0Z
SECTION 111 • FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
1. FINDING NUMBER:
14
2019- 014 2. THIS FINDING IS: 0 New LJ Repeat from Prior year?
3. Federal Program Name and Year: Medicaid Ad min Outreach (2018 & 2019), 2018 Equipment Assistance
4. Project No.: 2018 & 2019, 2018-4260 5.CFDA No.; 93.778, 10.579
6. Passed Through: IL Dept of Healthcare and Family Services, Illinois State Board of Education
7. Federal Agency: Dept of Health and Human Services, Dept of Agriculture

Grant activity should be continuously monitored.
15
9. Condition
Quarterly claims for the Medicaid Ad min Outreach grant are not being filed on a timely basis. The 2018 Equipment
Assistance grant was not reported on the 2018 SEFA.
16
NONE
17
11. Context
Illinois Dept of Healthcare and Family Services has not received a Medicaid Admin Outreach claim from the District since the
third quarter of 2018. The 2018 SEFA did not include the 2018 Equipment Assistance Grant's $35,083 of expenditures.
12. Effect
Through the end of audit field work, the District has not collected potentially $70,000 for quarterly Medicaid Admin Outreach
claims (if available). Additionally, a claim can only be filed within 2 years from the end of a quarter. The 2018 and 2019
SEFA's may not have included all Medicaid Ad min Outreach expenditures. The 2018 SEFA did not include the 2018
Equipment Assistance grant expenditures.
13. Cause
The District has not filed Medicaid Admin Outreach since third quarter 2018. Management did not report the expenditures
for the 2018 Equipment Assistance Grant on the SEFA.
14. Recommendation
All grants should be monitored for activity and reporting requirements.
18
Management agrees with the recommendations.
14
See footnote 11.
" Include facts that support the deficiency identified on the audit finding (§200.516 (b)(3)).
'" Identify questioned costs as required by §200.516 (a)(3 -4).
17
See footnote 12.
18
To the extent practical, indicate when management does not agree with the finding, questioned cost, or both.
94
Excellence in Education Sincel869
"To Educate, Empower and Inspire the V\lhole-Child"
RCDT: 07-016-1590-02
CORRECTIVE ACTION PLAN FOR CURRENT YEAR AUDIT FINDINGS
FINDING NO.: 2019-001 & 2019-008
CONDITION: Management does not prepare government-wide financial statement in accordance

with GASG Statement No. 34.
PLAN: NONE. Management provides all necessary information to its auditor and retains decision
making control for yea rend adjusting journal entries made as part of the auditor's preparation of the
government-wide financial statements in accordance with GASR Statement 34 No. 34. Due to
cost/benefit considerations for staffing, management believes this approach to be adequate and that
any corrective action is unnecessary.
FINDING NO.: 2019-002 & 2019-009
CONDITION: Certain cash disbursement transactions and credit card transactions were paid without
written approval or supporting documentation. Additionally, active credit cards are still in the names of
former employees.
Plan: The District Administration will implement a policy to ensure that cash disbursement transactions
and credit card transactions are not paid without prior written approval or supporting documentation
from the appropriate District Administrator. Additionally, the District Administration has closed all cards
belonging to former employees and all active credit cards are currently held in the name of District
administrators and/or Boa rd members who are authorized to conduct business on beha If of the school
district.
Serving the Communities of Matteson, Richton Park and Tinley Park

Adminlstratiw Center Colin ~owell Middle School Marya Yates School Neil A. A,mstrong School Slad•n Prairie School WoodgatE School
6202 Vollmer Rd. 20600 Matteson Avenu~ 6131 Allemong Drive 5D30 Imperial Orlve 725 Notre Dame Drive 101 Central Avenue
Ma ttemn, IL. 6 0443. Ma tl@$Q n, IL. 60443 Matteson, IL. 60443 Ri~hton Park, IL. 6047l Matteson, IL. 60443 Matteson, IL 60443
(708) 720-1300 I708) 283-9600 {7081720-1800 {708) 481-7424 (708} 720-2626 (708) 720-1107
FaM (708) 720-3218 Fa>< (708) 283-0718 Fax (708) ?20.-0343 FaK (708) 481-7416 fa>< 1708) 720-4640 Fax 1708) 720-3%25
95
FINDING NO.: 2019-003 & 2019-010
CONDITION: Personnel files did not have properly completed Form 1-9 Employee Eligibillty
Certifications. Approved wage rate information, extraordinary pay, and payroll adjustment for "retro"
pay documentation could not be located.
Plan: The Office of the CSBO will work with the Human Resources department to ensure that all
personnel files employees have a properly completed Form 1-9 Employee Eligibility Certification
maintained in the personnel file. Additionally, the Office of the CSBO will oversee a complete review of
all payroll adjustments made for the retro payments that were made in conjunction with the Support
Staff Union retro payment distribution, and going forward all payments made to staff members will be
accompanied by documentation that reflects that the wage rate and/or extraordinary pay was approved
by the Board of Education prior to payroll processing and distribution to employees.
FINDING NO.: 2019-004 & 2019-011
CONDITION: Time cards are not properly retained by the payroll department.
Pian: The importance of maintaining proper records of employee time cards has been discussed with
the Payroll Department. Moving forward, the Office of the CSBO is rev_iewing the possibility of
implementing a digital time keeping system so that system generated reports can replace physical time
cards to alleviate this issue.
FINDING NO.: 2019-005 & 2019-012
CONDITION: One of the District's cash accounts has several outstanding checks over one-year-old.
Plan: The Office of the CSBO has reached out to the recipients of the outstanding checks to confirm
current mailing address information so that checks can be re~issued as appropriate. Additionally, the
Office of the CSBO will implement an escheatment policy for check recipients who cannot be located
and take appropriate steps to escheat any unclaimed property to the State of Illinois as required under
Illinois state law.
FINDING NO.: 2019-006 & 2019-013
CONDITION: The District became aware of many instances of employee benefits not being
administered as intended as requested by employees. Additionally, inconsistencies were noted in wage
reporting to the retirement plan for certified staff. Inconsistencies in recording of payroll transactions
were noted between the books of account, payroll system reports and quarterly payroll reports
prepared and submitted.
96
Plan: The Office of the CSBO has implemented a bi-weekly review process between the Payroll
Department and the Human Resources and Benefits Department so that benefit payment and
retirement reporting inconsistencies can be readily identified and corrected in a timely manner.
Additionally, the Office of the CSBO is looking to outsource specific areas of the payroll function to
ensure that the inconsistencies do not recur in the future.
FINDING NO.: 2019-007
CONDITION: The Operations and Maintenance fund has a negative cash balance on the books at year
end.
Plan: The Office of the CSBO, in concert with the Board of Education, will implement a fund balance and
fund transfer policy to ensure that all district operating funds have a positive cash balance on the books
at fiscal year-end.
FINDING NO.: 2019-014
CONDITION: Quarterly claims for the Medicaid Adm in Outreach grant are not being filed on a timely
basis. The 2018 Equipment Assistance grant was not reported on the 2018 SEFA.
Plan: The Office of Diversity and Accountability, which overseas this program reporting requirement,
has been notified of thls issue and has taken steps to file the past due quarterly claims for the Medicaid
Admin Outreach grant. Additionally, the Office of the CSBO will implement a quarterly reporting review
process to monitor monies from the program and will notify the Office of Diversity and Accountability to
ensure the reports are being submitted on a timely basis. The Office of the CSBO will also work with the
District's grant writer to ensure awareness of the grants that are being applied for and awarded so that
they can be included in the financial reporting requirements, including the SEFA, going forward.
ANTICIPATED DATE OF COMPLETION: June 30,2020
NAME OF CONTACT PERSON: Demetria M. Brown, CSBO/Directorof Finance
SIGNATURE:
97
APPENDIX B
PROPOSED FORMS OF OPINIONS OF BOND COUNSEL
[LETTERHEAD OF CHAPMAN AND CUTLER LLP]
[TO BE DATED CLOSING DATE]

We hereby certify that we have examined certified copy of the proceedings (the
“Proceedings”) of the Board of Education of School District Number 159, Cook County, Illinois
(the “District”), passed preliminary to the issue by the District of its fully registered Taxable
General Obligation Refunding School Bonds, Series 2020 (the “Bonds”), to the amount of
$19,865,000, dated March 4, 2020, due serially on December 1 of the years and in the amounts
and bearing interest as follows:
2028 $1,420,000 2.387%

2029 1,450,000 2.487%
2030 1,490,000 2.637%
2031 1,525,000 2.737%
2032 1,570,000 2.837%
2033 1,615,000 2.937%
2034 1,660,000 3.037%
2035 1,710,000 3.087%
2039 7,425,000 3.372%
the Bonds due on December 1, 2039 being subject to mandatory redemption, in integral multiples
of $5,000 selected by lot by the Bond Registrar, at a redemption price of par plus any accrued
interest to the redemption date, on December 1 of the year and in the principal amounts as follows:
2036 $1,765,000
2037 1,825,000
2038 1,885,000
2039 1,950,000 (final maturity)
and the Bonds due on December 1, 2031 and thereafter 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, 2030, or on any date thereafter, at the redemption price of par
plus accrued interest to the redemption date, as provided in the Proceedings, and we are of the
opinion that the Proceedings show lawful authority for said issue under the laws of the State of
Illinois now in force.
We further certify that we have examined the form of bond prescribed for said issue and
find the same in due form of law, and in our opinion said issue, to the amount named, is valid and
legally binding upon the District and is payable from any funds of the District legally available for
such purpose, and all taxable property in the District is subject to the levy of taxes to pay the same
without limitation as to rate or amount, except that the rights of the owners of the Bonds and the
enforceability of the Bonds may be limited by bankruptcy, insolvency, moratorium, reorganization
and other similar laws affecting creditors’ rights and by equitable principles, whether considered
at law or in equity, including the exercise of judicial discretion.
It is our opinion that under present law, interest on the Bonds is includible in 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.
C-2
APPENDIX C
PROPOSED FORM OF
CONTINUING DISCLOSURE UNDERTAKING
FOR THE PURPOSE OF PROVIDING
CONTINUING DISCLOSURE INFORMATION
UNDER SECTION (b)(5) OF RULE 15c2-12
This Continuing Disclosure Undertaking (this “Agreement”) is executed and delivered by

School District Number 159, Cook County, Illinois (the “District”), in connection with the
issuance of $19,865,000 Taxable General Obligation Refunding School Bonds, Series 2020 (the
“Bonds”). The Bonds are being issued pursuant to a resolution adopted by the Board of Education
of the District on December 11, 2019 (as supplemented by a notification of sale, the “Resolution”).
In consideration of the issuance of the Bonds by the District and the purchase of such Bonds
by the beneficial owners thereof, the District covenants and agrees as follows:
1. PURPOSE OF THIS AGREEMENT. This Agreement is executed and delivered by the

District as of the date set forth below, for the benefit of the beneficial owners of the Bonds and in
order to assist the Participating Underwriters in complying with the requirements of the Rule (as
defined below). The District represents that it will be the only obligated person with respect to the
Bonds at the time the Bonds are delivered to the Participating Underwriters and that no other
person is expected to become so committed at any time after issuance of the Bonds.
2. DEFINITIONS. The terms set forth below shall have the following meanings in this
Agreement, unless the context clearly otherwise requires.
Annual Financial Information means information of the type contained under the following
headings and subheadings of, and in the following appendices and exhibits to, the Official
Statement:
FINANCIAL INFORMATION AND ECONOMIC CHARACTERISTICS

—Direct General Obligation Bonds (Principal Only)
—Selected Financial Information (only as it relates to direct debt)
—Composition of Equalized Assessed Valuation
—Trend of Equalized Assessed Valuation
—Taxes Extended and Collected
—School District Tax Rates by Purpose
WORKING CASH FUND—Working Cash Fund Summary
Exhibit A—Combined Statement of Revenues, Expenditures and Changes in Fund Balance
Exhibit B—Official Budget
Exhibit C—General Fund Revenue Sources
Annual Financial Information Disclosure means the dissemination of disclosure
concerning Annual Financial Information and the dissemination of the Audited Financial
Statements as set forth in Section 4.
Audited Financial Statements means the audited financial statements of the District
prepared pursuant to the principles and as described in Exhibit I.
Commission means the Securities and Exchange Commission.
Dissemination Agent means any agent designated as such in writing by the District and
which has filed with the District a written acceptance of such designation, and such agent’s
successors and assigns.
EMMA means the MSRB through its Electronic Municipal Market Access system for
municipal securities disclosure or through any other electronic format or system prescribed by the
MSRB for purposes of the Rule.
Exchange Act means the Securities Exchange Act of 1934, as amended.
Financial Obligation of the District means a (a) debt obligation; (b) derivative instrument
entered into in connection with, or pledged as security or a source of payment for, an existing or
planned debt obligation; or (c) guarantee of a debt obligation or any such derivative instrument;
provided that “financial obligation” shall not include municipal securities as to which a final
official statement (as defined in the Rule) has been provided to the MSRB consistent with the Rule.
MSRB means the Municipal Securities Rulemaking Board.
Official Statement means the Final Official Statement, dated February 5, 2020, and relating
to the Bonds.
Participating Underwriter means each broker, dealer or municipal securities dealer acting
as an underwriter in the primary offering of the Bonds.
Reportable Event means the occurrence of any of the Events with respect to the Bonds set
forth in Exhibit II.
Reportable Events Disclosure means dissemination of a notice of a Reportable Event as set

forth in Section 5.
Rule means Rule 15c2-12 adopted by the Commission under the Exchange Act, as the same
may be amended from time to time.
State means the State of Illinois.
Undertaking means the obligations of the District pursuant to Sections 4 and 5.
C-2
3. CUSIP NUMBERS. The CUSIP Numbers of the Bonds are set forth in Exhibit III. All
filings required under this Agreement will be filed on EMMA under these CUSIP Numbers. If the
Bonds are refunded after the date hereof, the District will also make all filings required under this
Agreement under any new CUSIP Numbers assigned to the Bonds as a result of such refunding,
to the extent the District remains legally liable for the payment of such Bonds; provided, however,
that the District will not be required to make such filings under new CUSIP Numbers unless the
District has been notified in writing by the Participating Underwriter or the District’s financial
advisor that new CUSIP Numbers have been assigned to the Bonds. The District will not make
any filings pursuant to this Agreement under new CUSIP Numbers assigned to any of the Bonds
after the date hereof for any reason other than a refunding, as described in the previous sentence,
including, but not limited to, new CUSIP Numbers assigned to the Bonds as a result of a holder of
the Bonds obtaining a bond insurance policy or other credit enhancement with respect to some or
all of the outstanding Bonds in the secondary market.
4. ANNUAL FINANCIAL INFORMATION DISCLOSURE. Subject to Section 8 of this

Agreement, the District hereby covenants that it will disseminate its Annual Financial Information
and its Audited Financial Statements (in the form and by the dates set forth in Exhibit I) to EMMA
in such manner and format and accompanied by identifying information as is prescribed by the
MSRB or the Commission at the time of delivery of such information and by such time so that
such entities receive the information by the dates specified. MSRB Rule G-32 requires all EMMA
filings to be in word-searchable PDF format. This requirement extends to all documents to be
filed with EMMA, including financial statements and other externally prepared reports.
If any part of the Annual Financial Information can no longer be generated because the
operations to which it is related have been materially changed or discontinued, the District will
disseminate a statement to such effect as part of its Annual Financial Information for the year in
which such event first occurs.
If any amendment or waiver is made to this Agreement, the Annual Financial Information
for the year in which such amendment or waiver is made (or in any notice or supplement provided
to EMMA) shall contain a narrative description of the reasons for such amendment or waiver and
its impact on the type of information being provided.
5. REPORTABLE EVENTS DISCLOSURE. Subject to Section 8 of this Agreement, the

District hereby covenants that it will disseminate in a timely manner (not in excess of ten business
days after the occurrence of the Reportable Event) Reportable Events Disclosure to EMMA in
such manner and format and accompanied by identifying information as is prescribed by the
MSRB or the Commission at the time of delivery of such information. References to “material”
in Exhibit II refer to materiality as it is interpreted under the Exchange Act. MSRB Rule G-32
requires all EMMA filings to be in word-searchable PDF format. This requirement extends to all
documents to be filed with EMMA, including financial statements and other externally prepared
reports. Notwithstanding the foregoing, notice of optional or unscheduled redemption of any
Bonds or defeasance of any Bonds need not be given under this Agreement any earlier than the
notice (if any) of such redemption or defeasance is given to the Bondholders pursuant to the
Resolution.
C-3
6. CONSEQUENCES OF FAILURE OF THE DISTRICT TO PROVIDE INFORMATION. The
District shall give notice in a timely manner to EMMA of any failure to provide Annual Financial
Information Disclosure when the same is due hereunder.
In the event of a failure of the District to comply with any provision of this Agreement, the
beneficial owner of any Bond may seek mandamus or specific performance by court order, to
cause the District to comply with its obligations under this Agreement. A default under this
Agreement shall not be deemed a default under the Resolution, and the sole remedy under this
Agreement in the event of any failure of the District to comply with this Agreement shall be an
action to compel performance.
7. AMENDMENTS; WAIVER. Notwithstanding any other provision of this Agreement, the

District by resolution authorizing such amendment or waiver, may amend this Agreement, and any
provision of this Agreement may be waived, if:
(a) (i) The amendment or waiver is made in connection with a change in

circumstances that arises from a change in legal requirements, including without limitation,
pursuant to a “no-action” letter issued by the Commission, a change in law, or a change in
the identity, nature, or status of the District, or type of business conducted; or
(ii) This Agreement, as amended, or the provision, as waived, would

have complied with the requirements of the Rule at the time of the primary offering,
after taking into account any amendments or interpretations of the Rule, as well as
any change in circumstances; and
(b) The amendment or waiver does not materially impair the interests of the
beneficial owners of the Bonds, as determined by parties unaffiliated with the District (such
as Bond Counsel).
In the event that the Commission or the MSRB or other regulatory authority shall approve
or require Annual Financial Information Disclosure or Reportable Events Disclosure to be made
to a central post office, governmental agency or similar entity other than EMMA or in lieu of
EMMA, the District shall, if required, make such dissemination to such central post office,
governmental agency or similar entity without the necessity of amending this Agreement.
8. TERMINATION OF UNDERTAKING. The Undertaking of the District shall be terminated

hereunder if the District shall no longer have any legal liability for any obligation on or relating to
repayment of the Bonds under the Resolution.
9. FUTURE CHANGES TO THE RULE. As set forth in Section 1 of this Agreement, the
District has executed and delivered this Agreement solely and only to assist the Participating
Underwriters in complying with the requirements of the Rule. Therefore, notwithstanding
anything in this Agreement to the contrary, in the event the Commission, the MSRB or other
regulatory authority shall approve or require changes to the requirements of the Rule, the District
shall be permitted, but shall not be required, to unilaterally modify the covenants in this
Agreement, without complying with the requirements of Section 7 of this Agreement, in order to
C-4
comply with, or conform to, such changes. In the event of any such modification of this
Agreement, the District shall file a copy of this Agreement, as revised, on EMMA in a timely
manner.
10. DISSEMINATION AGENT. The District may, from time to time, appoint or engage a
Dissemination Agent to assist it in carrying out its obligations under this Agreement, and may
discharge any such Dissemination Agent, with or without appointing a successor Dissemination
Agent.
11. ADDITIONAL INFORMATION. Nothing in this Agreement shall be deemed to prevent

the District from disseminating any other information, using the means of dissemination set forth
in this Agreement or any other means of communication, or including any other information in
any Annual Financial Information Disclosure or notice of occurrence of a Reportable Event, in
addition to that which is required by this Agreement. If the District chooses to include any
information from any document or notice of occurrence of a Reportable Event in addition to that
which is specifically required by this Agreement, the District shall have no obligation under this
Agreement to update such information or include it in any future disclosure or notice of occurrence
of a Reportable Event.
12. BENEFICIARIES. This Agreement has been executed in order to assist the Participating
Underwriters in complying with the Rule; however, this Agreement shall inure solely to the benefit
of the District, the Dissemination Agent, if any, and the beneficial owners of the Bonds, and shall
create no rights in any other person or entity.
13. RECORDKEEPING. The District shall maintain records of all Annual Financial
Information Disclosure and Reportable Events Disclosure, including the content of such
disclosure, the names of the entities with whom such disclosure was filed and the date of filing
such disclosure.
14. ASSIGNMENT. The District shall not transfer its obligations under the Resolution
unless the transferee agrees to assume all obligations of the District under this Agreement or to
execute an Undertaking under the Rule.
15. GOVERNING LAW. This Agreement shall be governed by the laws of the State.
SCHOOL DISTRICT NUMBER 159, COOK COUNTY,

ILLINOIS
By ____________________________________
President, Board of Education
Date: March 4, 2020
C-5
EXHIBIT I
ANNUAL FINANCIAL INFORMATION AND TIMING AND AUDITED

FINANCIAL STATEMENTS
All or a portion of the Annual Financial Information and the Audited Financial Statements
as set forth below may be included by reference to other documents which have been submitted to
EMMA or filed with the Commission. If the information included by reference is contained in a
Final Official Statement, the Final Official Statement must be available on EMMA; the Final
Official Statement need not be available from the Commission. The District shall clearly identify
each such item of information included by reference.
Annual Financial Information exclusive of Audited Financial Statements will be submitted

to EMMA by 210 days after the last day of the District’s fiscal year (currently June 30), beginning
with the fiscal year ending June 30, 2020. Audited Financial Statements as described below should
be filed at the same time as the Annual Financial Information. If Audited Financial Statements
are not available when the Annual Financial Information is filed, Audited Financial Statements
will be submitted to EMMA within 30 days after availability to the District.
Audited Financial Statements will be prepared in accordance with accounting principles

mandated by the Illinois State Board of Education.
If any change is made to the Annual Financial Information as permitted by Section 4 of the
Agreement, the District will disseminate a notice of such change as required by Section 4.
EXHIBIT I
C-6
EXHIBIT II
EVENTS WITH RESPECT TO THE BONDS FOR WHICH
REPORTABLE EVENTS DISCLOSURE IS REQUIRED
1. Principal and interest payment delinquencies

2. Non-payment related defaults, if material
3. Unscheduled draws on debt service reserves reflecting financial difficulties
4. Unscheduled draws on credit enhancements reflecting financial difficulties
5. Substitution of credit or liquidity providers, or their failure to perform
6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other
material notices or determinations with respect to the tax status of the security, or other
material events affecting the tax status of the security
7. Modifications to the rights of security holders, if material
8. Bond calls, if material, and tender offers
9. Defeasances
10. Release, substitution or sale of property securing repayment of the securities, if material
11. Rating changes
12. Bankruptcy, insolvency, receivership or similar event of the District*
13. The consummation of a merger, consolidation, or acquisition involving the District or the
sale of all or substantially all of the assets of the District, other than in the ordinary course
of business, the entry into a definitive agreement to undertake such an action or the
termination of a definitive agreement relating to any such actions, other than pursuant to
its terms, if material
14. Appointment of a successor or additional trustee or the change of name of a trustee, if
material
15. Incurrence of a Financial Obligation, if material, or agreement to covenants, events of
default, remedies, priority rights, or other similar terms of a Financial Obligation of the
District, any of which affect security holders, if material
16. Default, event of acceleration, termination event, modification of terms, or other similar
events under the terms of a Financial Obligation, any of which reflect financial difficulties
* This event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or
similar officer for the District in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under
state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of
the assets or business of the District, or if such jurisdiction has been assumed by leaving the existing governing
body and officials or officers in possession but subject to the supervision and orders of a court or governmental
authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or
governmental authority having supervision or jurisdiction over substantially all of the assets or business of the
District.
EXHIBIT III
CUSIP NUMBERS
YEAR OF CUSIP
MATURITY NUMBER
(215260)
2028 MH0
2029 MJ6
2030 MK3
2031 ML1
2032 MM9
2033 MN7
2034 MP2
2035 MQ0
2039 MR8

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NEW ISSUE Rating:

BOOK-ENTRY ONLY Moody’s: “Aa3”

Oppenheimer & Co.

$19,865,000 TAXABLE GENERAL OBLIGATION REFUNDING SCHOOL BONDS, SERIES 2020

MATURITIES, AMOUNTS, INTEREST RATES, YIELDS AND CUSIP NUMBERS

2028 $1,420,000 2.387% 2.387% MH0

6202 Vollmer Road

Dr. William McClinton

Regina Edgecombe Carolyn Palmer Sharee Morton

Debra Ellis Bernice Brown Carolyn Owens

Dr. Mable Alfred

Dr. Demetria Brown

Bond Counsel and Disclosure Counsel

Bond Registrar, Paying Agent and Escrow Agent

School District Number 159

AUTHORITY AND PURPOSE

REGISTRATION AND TRANSFER

YEAR PRINCIPAL AMOUNT

SERIES 2007 BONDS

2020 $1,528,654.50 $2,850,000 $1,528,654.50 $2,850,000 Non Callable Non Callable

TOTAL $11,638,632.65 $25,045,000 $9,608,266.45 $20,485,000

Total Sources $19,865,000.00

Total Uses $19,865,000.00

FINANCES OF THE STATE OF ILLINOIS

LOSS OR CHANGE OF BOND RATING

FUTURE CHANGES IN LAWS

The District is governed by an elected seven-member Board and a full-time administrative

Dr. Mable Alfred Superintendent

OFFICIAL POSITION TERM EXPIRES

Dr. William McClinton President April 2021

2015/2016 1,849 2020/2021 1,870

CONTRACT UNION NUMBER OF

Support Staff June 2020 IEA-NEA 98

Teachers June 2021 IEA-NEA 168

Village of Matteson 11,378 12,928 19,009 47.04%

EDUCATIONAL CHARACTERISTICS OF PERSONS 25 YEARS AND OLDER

HIGH SCHOOL 4 OR MORE YEARS

Village of Matteson 96.0% 38.3%

SERIES 2004(1) SERIES 2007(2) TOTAL GENERAL

2020 $ 637,294 $637,294

TOTAL $1,430,910 $2,030,367 $19,865,000 $23,326,277

Cook County $2,677,315,000 0.271% $7,244,288

2018 Estimated Full Value of Taxable Property: $ 1,396,833,168

General Obligation Bonds (including this issue): $ 23,326,277

General Obligation Bonded Debt $ 23,326,277

2014 2015 2016 2017 2018

Matteson - Commons $356,125 $ 2,791,601 $ 2,435,476

% CHANGE IN EAV FROM

2014 $385,310,573 -2.19%(2)

TAXES EXTENDED AND COLLECTED

TAX LEVY YEAR/ TAXES TAXES COLLECTED PERCENT

2014/15 $29,067,855 $27,844,338 95.79%

IMRF $0.4010 $0.4144 $0.4023 $0.0117 $0.0000 None(2)

REPRESENTATIVE TOTAL TAX RATES 2014-2018

TAXING AUTHORITY 2014 2015 2016 2017 2018

The District $7.589 $7.884 $7.734 $7.315 $7.713

Wal Mart Real Estate $18,506,285 3.97%

RETAILERS’ OCCUPATION, SERVICE OCCUPATION AND USE TAX

CALENDAR YEAR VILLAGE OF VILLAGE OF

2014 $6,726,917 $ 386,085

2014 - Average 9.2% 9.7% 7.5% 7.1%

SPECIFIED OWNER-OCCUPIED UNITS

VILLAGE OF MATTESON VILLAGE OF RICHTON PARK

VALUE NUMBER PERCENT NUMBER PERCENT