Office of the City Clerk - Record #: F2014-17

• Record #: F2014-17
• Type: Report
• Status: Placed on File
• Intro date: 3/5/2014
• Final action: 3/5/2014
• Title: City Comptroller's Comprehensive Annual Financial Report and Supplement (2012)
• Sponsors: Dept./Agency
• Topic: REPORTS - Annual

Date	Journal Page Number	Action By	Action	Result
3/5/2014	75227	City Council	Placed on File

Department of Finance

city of chicago

January 16, 2014

Honorable Susana A. Mendoza City Clerk

121 North LaSalle Street, Room 107 Chicago, Illinois 60602

Dear City Clerk Mendoza:

I am submitting to you the Comprehensive Annual Financial Report (CAFR) and the Supplement thereto for the year ended December 31, 2012. These reports are accurate in all material respects and are prepared in a manner designed to present fairly the financial position and results of operations of the various funds.

Sincerely,

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Erin Keane

Acting City Comptroller

Enclosure

 

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121 NORTH LASALLE STREET, ROOM 700, CHICAGO, ILLINOIS 60602

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CITY OF CHICAGO

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2012

 

Rahm Emanuel, Mayor

Lois A. Scott, Chief Financial Officer Amer Ahmad, City Comptroller

 

OFFICE OF THE MAYOR

CITY OF CHICAGO

RAHM EMANUEL MAYOR

June 29, 2013

Dear Chicagoans:

Thank you for your interest in the Comprehensive Annual Financial Report (CAFR) of the City of Chicago for the 2012 fiscal year.

In 2012, the City of Chicago took on the challenging task of improving the City's finances by working to bring expenditures in line with revenues, tightly managing department budgets and cutting Citywide costs. At the same time, the City engaged in dynamic and efficiency-promoting reforms that ensure Chicago residents receive high quality programming and exceptional City services at the lowest cost now, and in the future. Additionally, the City enhanced its long-term financial outlook by contributing $20 million to its long-term reserves.

While significant progress was made in 2012, we continue to seek additional ways to improve the City's financial health. At the same time, we strategically invest to promote the city's%rbwth which will undoubtedly foster an environment that makes Chicago an ideal place to do business, work, live and raise a family.

 

Mayor

By investing in the future, reforming city government, and reducing inefficiencies, we can ensure the City of Chicago and the programs and services it offers will continue to thrive and benefit all of our residents and taxpayers while attracting new companies, ventures and visitors for decades to come.

CITY OF CHICAGO

THE CITY COUNCIL As of December 31, 2012 RAHM EMANUEL, Mayor

1st      Ward      JOE MORENO

2nd      Ward      ROBERT FIORETTI

3rd      Ward      PAT DOWELL

4th      Ward      WILLIAM D. BURNS

5th      Ward      LESLIE A. HAIRSTON

6th      Ward      RODERICK T. SAWYER

7th      Ward      SANDI JACKSON

8th      Ward      MICHELLE A. HARRIS

9th      Ward      ANTHONY BEALE

10th      Ward      JOHN A. POPE

11th      Ward      JAMES A. BALCER

12th      Ward      GEORGE A. CARDENAS

13th      Ward      MARTY QUINN

14th      Ward      EDWARD M. BURKE

15th      Ward      TONI FOULKES

16th      Ward      JOANN THOMPSON

17th      Ward      LATASHA R. THOMAS

18th      Ward      LONA LANE

19th      Ward      MATTHEW J. O'SHEA

20th      Ward      WILLIE COCHRAN

21st      Ward      HOWARD BROOKINS, JR.

22nd      Ward      RICARDO MUNOZ

23rd      Ward      MICHAEL R. ZALEWSKI

24th      Ward      MICHAEL D. CHANDLER

25th      Ward      DANIEL S. SOLIS

26th      Ward      ROBERTO MALDONADO

27th      Ward      WALTER BURNETT, JR.

28th      Ward      JASON C. ERVIN

29th      Ward      DEBORAH L. GRAHAM

30th      Ward      ARIEL E. REBOYRAS

31st      Ward      REGNER "RAY" SUAREZ

32nd      Ward      SCOTT WAGUESPACK

33rd      Ward      RICHARD F. MELL

34th      Ward      CARRIE M. AUSTIN

35th      Ward      REY COLON

36th      Ward      NICHOLAS SPOSATO

37th      Ward      EMMA MITTS

38th      Ward      TIMOTHY M. CULLERTON

39th      Ward      MARGARET LAURINO

40th      Ward      PATRICK J. O'CONNOR

41st      Ward      MARY O'CONNOR

42nd      Ward      BRENDAN REILLY

43rd      Ward            MICHELE SMITH

44th      Ward      THOMAS M. TUNNEY

45th      Ward      JOHN ARENA

46th      Ward      JAMES CAPPLEMAN

47th      Ward      AMEYA PAWAR

48th      Ward      HARRY OSTERMAN

49th      Ward      JOSEPH A. MOORE

50th      Ward      DEBRA L SILVERSTEIN

4

2012 COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF CHICAGO

Table of Contents

PART I - INTRODUCTORY SECTION

Letter of Transmittal            8

Certificate of Achievement for Excellence in Financial Reporting            12

Organization Chart            13

PART II - FINANCIAL SECTION

Independent Auditors' Report       15

Management's Discussion and Analysis       17

Basic Financial Statements

Exhibit   1     Statement of Net Position             31

Exhibit   2     Statement of Activities             32

Exhibit  3     Balance Sheet, Governmental Funds             34

Exhibit  4     Statement of Revenues, Expenditures and Changes in Fund Balances,

Governmental Funds            36

Exhibit   5     Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund

Balances of Governmental Funds to the Statement of Activities            40

Exhibit  6     Statement of Revenues and Expenditures - Budget and

Actual, General Fund (Budgetary Basis)            41

Exhibit  7     Statement of Net Position, Proprietary Funds             42

Exhibit   8     Statement of Revenues, Expenses and Changes in Net Position, Proprietary Funds            44

Exhibit   9     Statement of Cash Flows, Proprietary Funds             45

Exhibit 10     Statement of Fiduciary Net Position, Fiduciary Funds            47

Exhibit 11     Statement of Changes in Plan Net Position, Pension Trust Funds            48

Notes to Basic Financial Statements        49

Schedule of Other Postemployment Benefits Funding Progress       94

Combining and Individual Fund Statements

General Fund

Schedule A-1 Schedule of Revenues-Budget and Actual (Budgetary Basis)       96

Nonmajor Governmental Funds

Schedule B-1 Combining Balance Sheet       100

Schedule B-2 Combining Statement of Revenues, Expenditures and Changes in Fund Balance       101

Nonmajor Special Revenue Funds

Schedule C-1 Combining Balance Sheet       104

Schedule C-2 Combining Statement of Revenues, Expenditures and

Changes in Fund Balance (Deficit)        106

Schedule C-3 Combining Schedule of Revenues - Budget and Actual (Budgetary Basis)       108

Schedule C-4 Combining Schedule of Expenditures and Encumbrances - Budget and Actual

(Budgetary Basis)       110

Nonmajor Capital Projects Funds

Schedule D-1 Combining Balance Sheet       113

Schedule D-2 Combining Statement of Revenues, Expenditures and Changes in Fund Balance       114

Fiduciary Funds

Schedule E-1 Agency Funds, Combining Statement of Changes in Assets and Liabilities       116

Schedule E-2 Pension Trust Funds, Combining Statement of Plan Net Position       118

Schedule E-3 Pension Trust Funds, Combining Statement of Changes in Plan Net Position       119

5

PART III - STATISTICAL SECTION (Unaudited)

Table 1       Net Assets by Component, Last Ten Years       122

Table 2       Changes in Net Assets - Accrual Basis of Accounting, Last Ten Years      124

Table 3       General Governmental Revenues by Source, Last Ten Years       130

Table 4       General Governmental Expenditures by Function, Last Ten Years       132

Table 4A       Changes in Fund Balances, Governmental Funds, Last Ten Years       134

Table 5       Fund Balances, Governmental Funds, Last Ten Years       136

Table 6       General Fund, Schedule of Revenues, Expenditures and Changes in Fund Balances,

Five Years Ended December 31, 2012       138

Table 7       Special Revenue Funds, Schedule of Revenues, Expenditures and

Changes in Fund Balances, Five Years Ended December 31, 2012       139

Table 8       Debt Service Funds, Schedule of Revenues, Expenditures and

Changes in Fund Balances, Five Years Ended December 31, 2012       140

Table 9       Capital Projects Funds, Schedule of Revenues, Expenditures and

Changes in Fund Balances, Five Years Ended December 31, 2012       141

TablelO       Property Tax Levies by Fund, Five Years Ended December 31, 2012      142

Table 11       Property Levies, Collections and Estimated

Allowance for Uncollectible Taxes, Last Ten Years      144

Table 12       Top Ten Estimated Equalized Assessed Valuation, Current Year and Nine Years Ago       145

Table 13       Assessed and Estimated Fair Market Value of All Taxable Property, Last Ten Years      146

Table 14       Property Tax Rates-Direct and Overlapping Governments, Per $100 of Equalized

Assessed Valuation, Last Ten Years       148

Table 15       Property Tax Rates-City of Chicago, Per $100 of Equalized

Assessed Valuation, Last Ten Years       148

Table 16       Ratio of General Net Bonded Debt to Equalized Assessed Value and

Net Bonded Debt per Capita, Last Ten Years       150

Table 17       Ratio of Annual Debt Service Expenditures for General Obligation Debt to Total

Governmental Expenditures, Last Ten Years       150

Table 18       Computation of Direct and Overlapping Bonded Debt       151

Table 19       Debt Statistics, Last Ten Years            152

Table 20       Revenue Bond Coverage, Last Ten Years       154

Table 21       Ratio of Outstanding Debt by Type, Last Ten Years            156

Table 22       Debt Service Requirements for General Long-term Debt       158

Table 23       Debt Service Requirements for General Obligation Debt       159

Table 24       Debt Service Requirements for Proprietary Funds       160

Table 25       Long-term Debt       162

Table 26       Population and Income Statistics, Last Ten Years       166

Table 27       Principal Employers (Non-government) Current Year and Nine Years Ago       167

Table 28       Full Time Equivalent City of Chicago Employees by Function, Last Seven Years       168

Table 29       Operating Indicators by Function/Department, Last Seven Years       169

Table 30       Capital Assets Statistics by Function, Last Seven Years       169

Table 31       Interest Rate SWAPS Counterparty Entities       170

6

PARTI INTRODUCTORY SECTION

 

Department of Finance city of chicago

June 29, 2013

To the Honorable Mayor Rahm Emanuel, Members of the City Council, and Citizens of the City of Chicago:

We are pleased to submit the Comprehensive Annual Financial Report (CAFR) of the City of Chicago for the fiscal year ended December 31, 2012. State law requires that all governmental units publish, within six months of the close of each fiscal year, financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited by a licensed public accountant.

Responsibility for both the accuracy of the data and completeness and fairness of the presentation, including all disclosures, rests with management. The purpose of the CAFR is to provide complete and accurate financial information which complies with the reporting requirements of the Municipal Code of Chicago (Code). The City's financial management is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the government are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with GAAP.

The internal control structure is designed to provide reasonable but not absolute assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of control should not exceed the benefits likely to be derived and that the valuation of costs and benefits requires estimates and judgments by management.

The Code also requires that the City's basic financial statements are audited by independent certified public accountants selected by the Committee on Finance of the City Council. This requirement has been met, and the unqualified audit opinion rendered by Deloitte & Touche LLP is included in the financial section of this report. The audit was conducted as a subcontractor arrangement between Deloitte & Touche LLP and a consortium of Chicago-based minority and women-owned certified public accounting firms.

In addition to meeting the requirements set forth in the Code, an additional audit designed to meet the requirements of the federal Single Audit Act Amendment of 1996 and related OMB Circular A-133, Audits of State and Local Governments is performed annually.

GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of a Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City's MD&A can be found immediately following the report of the independent auditors.

8

33 NORTH LASALLE STREET, SUITE 600, CHICAGO, ILLINOIS 60602

Profile of the Government. The City of Chicago, incorporated in 1837, currently occupies a land area of approximately 228 square miles and serves a population of approximately 2,696,000. The City is a "home rule" unit of local government under Illinois law and has a mayor-council form of government. The Mayor is the Chief Executive Officer of the City and is elected by general election. The City Council is the legislative body and consists of 50 members, each representing one of the city's 50 wards. The members of the City Council are elected through popular vote by ward for four-year terms.

The City provides public safety, street maintenance and sanitation, transportation infrastructure, water, sewer, health, cultural, aviation and human services. In addition to general government activities, the City has certain entities that are fiscally dependent on the City and perform services primarily for City employees, such as the Municipal Employees' Annuity and Benefit Fund, Laborers' and Retirement Board Employees' Annuity and Benefit Fund, Policemen's Annuity and Benefit Fund and Firemen's Annuity and Benefit Fund. These component units are included in the City's reporting entity. Additional services are provided to residents by the Chicago Public Schools, Chicago Park District, Chicago Transit Authority, City Colleges of Chicago and the Chicago Housing Authority. However, these component units are not included in the City's reporting entity.

Annual budgets are adopted for the City's general fund and certain special revenue funds. Prior to October 15, the Mayor submits to the City Council a proposed budget of expenditures and the means of financing them for the next year. The City Council is required to hold at least one public hearing regarding the proposed budget, and the budget document must be made available for public inspection at least ten days prior to the passage of the annual appropriation ordinance. Not later than December 31, the budget is legally enacted through passage of the appropriation ordinance. Additional information on the budgetary process can be found in Note 3 in the notes to financial statements.

Local Economy. Chicago continues to enjoy one of the most diverse economies in the nation, comprised of mature and emerging industries, including business and financial services, manufacturing, aviation, transportation and warehousing, biotech and life sciences, education and healthcare. Long-standing components of the local economy, such as derivatives trading, remain strong - Chicago futures and options exchanges collectively conduct 50% of the exchange-based derivatives trading in the U.S. - while new sectors continuously emerge - the City is now home to 20 wind energy companies.

Chicago's large and diverse economy contributes to a gross regional product of more than $500 billion. Total trade reached $188 billion in 2012, up from $154 billion in 2008. With 4.3 million employees and over 260,000 businesses, the Chicago metropolitan area is home to more than 400 major corporate headquarters, including 29 Fortune 500 headquarters. Chicago has long been a center for international business and is currently home to over 1,500 foreign-based companies and receives more than $40 billion in direct foreign investment. Chicago-based companies, in turn, have a strong presence abroad, with over 4,100 locations in 170 countries.

Business expansion and investment in Chicago continue to grow. Throughout 2012, Chicago placed in the top three cities across the country for monthly employment growth and unemployment declines, due in part to 33,667 new and retained jobs. Companies such as Motorola Mobility relocated headquarters to the city, bringing over $300 million and 2,000 jobs. Mayor Emanuel announced more than 12,000 new jobs in 2012 in fields such as consumer products, energy, professional and financial services, healthcare, manufacturing, technology, transportation and logistics. More than 600 new or expanding facilities were also announced, commenced, or completed in the Chicago metropolitan area in 2012, representing a total of 35 million square feet and $10.5 billion in economic development activity.

9

In addition, Chicago continues to be a destination for both business and leisure travelers, drawn by the City's numerous cultural and recreational attractions, professional sports teams, festivals, museums; parks and more. Tourism, business and convention travel to Chicago reached near-record levels in 2012, with 46.2 million visitors to the City, an increase of 6% over 2011. This activity continues to be a significant part of the local economy, helping to strengthen small businesses and provide jobs.

Financial Planning and Policies. Each year, the City completes an Annual Financial Analysis based on the critical understanding that to protect the health and safety of all Chicagoans, strengthen communities and neighborhoods, maintain infrastructure and public spaces, and foster a vibrant local economy, the City must take an informed and long-term approach to financial planning. The Annual Financial Analysis, which is available on the City's website, provides a review of the City's revenues and expenditures over the past 10 years, a forecast of the City's finances for the next three years, and analyses of the City's reserves, pension contributions, debt obligations, and capital improvement program.

The City bases its annual budget on an assessment of the available resources for that year and an understanding of the City's service priorities, adopting a balanced budget each year in accordance with the Illinois Municipal Code. As part of the annual budget process, the City evaluates each department's direct and indirect costs in order to accurately assess expenses across City government and strives to maintain a diversified revenue system that is responsive to the changing economy and designed to protect the City from short-term fluctuations in any individual revenue source. The City's financial policies are intended to secure the City's fiscal integrity and health, encourage equitable allocation of costs and resources, identify potential financial risks and options to mitigate them, maximize economic efficiency, and allow sufficient flexibility to consider new fiscal and budgetary strategies.

2012 Budget and Major Initiatives. In 2012, the City closed a $635.7 million budget shortfall through targeted cuts, strategic reforms, and select revenue increases. The 2012 budget made difficult decisions about cutting expenses and incorporated innovative initiatives that generated savings while improving the quality of City services:

• The City transitioned to a grid-based garbage collection system, shifting from a non-linear ward-based scheme to a system of routes bordered by main streets and natural boundaries, saving millions each year.
• Competitive bidding was introduced to City services such as recycling and tree trimming, reducing the cost of providing these services and generating savings for reinvestment in service expansion.
• The City worked closely with labor unions to implement a groundbreaking employee wellness program to promote a healthier workforce and counter rising health insurance costs.
• The police and fire departments consolidated into a single public safety headquarters, generating administrative and real estate savings and increasing opportunities for beneficial coordination.
• The City commenced an ambitious and much-needed rehabilitation program for its aging water and sewer systems, which will save millions spent each year to repair damage caused by outdated water and sewer infrastructure and help to secure a clean and safe water supply for future generations.

All of this and much more was done without increasing sales, utility, or property taxes, and while cutting taxes on employers in order to foster job growth. The 2012 budget also phased out the heavy reliance on nonrecurring revenue sources seen prior to 2012 and deposited $20 million into the City's long-term reserves.

10

Awards and Acknowledgments. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Chicago for its comprehensive annual financial report for the fiscal year ended December 31, 2011. This was the nineteenth consecutive year that the government has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual financial report continues to meet the Certificate of Achievement program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

This report could not have been prepared without the dedication and effective help of the staff of the Department of Finance. We wish to express our appreciation to those who contributed to the preparation of this report.

 

Amer Ahmad City Comptroller

Respectfully submitted,

 

Chief Financial Officer

11

Certificate of

Achievement for Excellence in Financial Reporting

Presented to

City of Chicago Illinois

For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 2011

 

A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting.

President Executive Director

CITY OF CHICAGO ORGANIZATION CHART AS OF 12/31/2012

Citizens

MAYOR

CITY CLERK

CITY COUNCIL

CITY TREASURER

COUNCIL COMMITTEES

Department of Administrative Heanngs

Department Of Business Affairs and Consumer Protection

Office of Emergency Management and Communications

Department

of Fleet Management

Office of Inspector General

Department of

Procurement Services

Commission on Animal Care and Control

Department of Housing and

Economic Development

Board

of Ethics

Department of Public Health

Department of

Law

Chicago Public Library

Department of Aviation

Office of

Compliance

Department of Family and

Support Services

Commission on

Human Relations

License Appeal Commission

Department of Streets and Sanitation

Office of Budget and Management

Department of Cultural Affairs and Special Events

Department of

Finance

Department of Human Resources

Mayor's Office

for People with Disabilities

Department of

Transportation

Department of

Buildings

Board of Election Commissioners

Fire Department

Department of Innovation and Technology

Department of Police

Department of

Water Management

13

PART II

FINANCIAL SECTION

INDEPENDENT AUDITORS' REPORT, MANAGEMENT'S DISCUSSION AND ANALYSIS

AND

THE BASIC FINANCIAL STATEMENTS

 

Deloitte 8 Touche LLP 1115. Wacker Drive Chicago. IL 60606-4301 USA

Tel: +1 312 486 1000 Fax:+1 312 486 I486 i\\vw.deloitte:com

Deloitte

INDEPENDENT AUDITOR'S REPORT

To the Honorable Rahm Emanuel, Mayor and Members of the City Council City of Chicago, Illinois

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chicago, Illinois (the "City"), as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the City'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 accounting principles generally accepted in the United States of America; this includes 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 did not audit the financial statements of the City's Pension Plans (the "Plans") which, in aggregate, represent substantially all the assets and revenues of the fiduciary funds, included in the aggregate remaining fund information. Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for the Plans, is based solely on the reports of the other auditors. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. 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 financial statement presentation of the financial statements.

We believe that the audit evidence we and other auditors have obtained is sufficient and appropriate to provide a basis for our audit opinions.

15

Member of

Deloitte louche Tohmotsu Limned

Opinions

In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chicago, Illinois, as of December 31, 2012, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information

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

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The Combining, Individual Fund Financial Statements, introductory section and statistical section are presented for the purposes of additional analysis and are not a required part of the basic financial statements.

The Combining and Individual Fund Financial Statements 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 by us and other auditors. In our opinion, based on our audit, the procedures performed as described above, and the report of the other auditors, the Combining and Individual Fund Financial Statements is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

 

Chicago, Illinois June 29, 2013

The introductory section and the statistical 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.

16

CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2012

Management's Discussion and Analysis

As management of the City of Chicago, Illinois (City) we offer readers of the City's Comprehensive Annual Financial Report (CAFR) this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2012. We encourage the readers to consider the information presented here in conjunction with information that we have furnished in our letter of transmittal, contained within this report.

2012 Financial Highlights

• Liabilities and Deferred Inflows of the City, in the government-wide financial statements, exceeded its assets and deferred outflows at the close of the most recent fiscal year by $3,828.3 million (net deficit). Of this amount, $8,891.6 million is an unrestricted deficit, while $2,172.3 million is net investment in capital assets and $2,891.0 million is restricted for specific purposes.
• The City's total assets increased by $631.7 million. The increase primarily relates to a $1,004.0 million increase in capital assets as a result of the City's capital improvement program, offset by a $319.7 million decrease in cash and cash equivalents and investments primarily as a result of the City's financing of its operations.
• Revenues and Other Financing Sources, in the fund financial statements, available for general governmental operations during 2012 were $6,751.5 million, a decrease of $889.7 million (11.6 percent) from 2011 due to a decrease in the amount of bonds issued.
• The General Fund, also in the fund financial statements, ended 2012 with a total Fund Balance of $231.3 million. Total Fund Balance decreased from 2011 primarily because Revenues and Other Financing Sources were less than Expenditures and Other Financing Uses by $101.1 million. Fund Balance at December 31, 2012 of $177.0 million was assigned. Unassigned Fund Balance was $33.4 million at December 31, 2012.
• The City's general obligation bonds and notes outstanding increased by $234.1 million during the current fiscal year. The proceeds from the increase in bonds were used to finance the City's capital plan and certain operating expenses.

Overview of the Basic Financial Statements

This discussion and analysis is intended to serve as an introduction to the City's basic financial statements, which include the following components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains required supplementary information and other supplementary information in addition to the basic financial statements. These components are described below:

Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, using accounting methods similar to those used by private-sector companies. The statements provide both short-term and long-term information about the City's financial position, which assists in assessing the City's economic condition at the end of the fiscal year. These financial statements are prepared using the flow of economic resources measurement focus and the accrual basis of accounting. This basically means such statements follow methods that are similar to those used by most businesses. They take into account all revenues and expenses connected with the fiscal year even if cash involved has not been received or paid.

The government-wide financial statements include two statements:

The statement of net position presents information on all of the City's assets, deferred outflows, liabilities, and deferred inflows with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating, respectively. To assess the overall health of the City, the reader should consider additional non-financial factors such as changes in the City's property tax base and the condition of the City's roads.

The statement of activities presents information showing how the government's net position changed during each fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future periods (for example, uncollected taxes, and earned but unused

17

CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2012

vacation). This statement also presents a comparison between direct expenses and program revenues for each function of the City.

Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues {governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, streets and sanitation, transportation, health, and cultural and recreation. The business-type activities of the City include water, sewer, tollway and airport services.

The government-wide financial statements present information about the City as a primary government, which includes the Chicago Public Library and the City related funds of the Public Building Commission. The government-wide financial statements can be found immediately following this management's discussion and analysis.

Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

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

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

The City maintains 19 individual governmental funds. Information for the six funds that qualify as major is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances. The six major governmental funds are as follows: the General Fund, the Federal, State and Local Grants Fund, the Special Taxing Areas Fund, Service Concession and Reserve Fund, the Bond, Note Redemption and Interest Fund, and the Community Development and Improvement Projects Fund. Data from the other governmental funds are combined into a single, aggregated presentation.

The City adopts an annual appropriation budget for its general and certain special revenue funds on a non-GAAP budgetary basis. A budgetary comparison statement has been provided for the General Fund, the only major fund with an appropriation budget, to demonstrate compliance with this budget. The basic governmental fund financial statements can be found immediately following the government-wide statements.

Proprietary funds. These funds are used to show activities that operate more like those of commercial enterprises. Because these funds charge user fees for services provided to outside customers including local governments, they are known as enterprise funds. Proprietary funds, like government-wide statements, use the accrual basis of accounting and provide both long- and short-term financial information. There is no reconciliation needed between the government-wide financial statements for business-type activities and the proprietary fund financial statements. The City uses five enterprise funds to account for its water, sewer, tollway, and two airports operations.

Proprietary funds provide the same type of information as the government-wide financial statements, but provide more detail. The proprietary fund financial statements provide separate information for the Water Fund, Sewer Fund, Chicago Skyway Fund, Chicago-O'Hare International Airport Fund and the Chicago Midway International Airport Fund. All the proprietary funds are considered to be major funds of the City. The basic proprietary fund financial statements can be found immediately following the governmental fund financial statements.

18

CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2012

Fiduciary funds. Fiduciary funds are used primarily to account for resources held for the benefit of parties outside the primary government. The City is the trustee, or fiduciary, for its employees' pension plans. It is also responsible for other assets that, because of a trust arrangement can be used only for the trust beneficiaries. The City also uses fiduciary funds to account for transactions for assets held by the City as agent for various entities. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City's own programs. All of the City's fiduciary activities are reported in a separate statement of fiduciary net position and a statement of changes in fiduciary net position. The accounting used for fiduciary funds is much like that used for proprietary funds. The fiduciary fund basic financial statements can be found immediately following the proprietary fund financial statements.

Notes to the basic financial statements. The notes provide additional information that is essential for a full understanding of data provided in the government-wide and fund financial statements. The notes to the basic financial statements can be found immediately following the fiduciary fund basic financial statements.

Additional Information. The combining statements, which include nonmajor funds, for governmental funds and trust and agency funds are presented immediately following the notes to the basic financial statements.

Financial Analysis of the City as a whole

Net Position. As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, liabilities and deferred inflows exceeded assets by $3,828.2 million at December 31, 2012.

A large portion of the City's net position, $2,172.3 million, reflects its investment in capital assets (land, buildings, roads, bridges, etc.) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities and deferred inflows.

19

CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2012

City of Chicago, Illinois Summary Statement of Net Position

(in millions      of dollars)

Governmental      Business-type

      Activities                  Activities      

2012               2011      2012      2011

Current and other assets                     $  5,789.0       $  6,125.2      $  4,444.1      $ 4,480.3

Capital assets                                     7,869.7           7,579.9      12,515.5      11,801.2

Total Assets                                   13,658.7          13,705.1      16,959.6      16,281.5

Deferred outflows                                   224 2             236.0      253.1      255.1

Total                                              13,882.9          13,941.1      17,212.7      16,536.6

Long-term liabilities outstanding               16,863.2          15,212.4      12,496.0      11,827.3

Other liabilities                                     1,245.8           1,484 0      1,018.4      1,223.6

Total Liabilities                                18,109.0          16,696.4      13,514.4      13,050.9

Deferred Inflows                                   1,618.4           1,639.4      1,682.1      1,700.6

Net Position:

Net investment in capital assets ..        (216.0)            (299.9)      2,388 3      2,451.8

Restricted                                          1,908.5           1,596.4      982.5      874.8

Unrestricted                                       (7,537.0)          (5,691.2)      (1,354.6)      (1,541.5)

Total net (deficit) position                 $ (5,844.5)"     $ (4,394.7)"      $   2,016.2~      $ 1,785.i~

Total

2012

$ 10,233.1 20,385.2

30,618.3 477.3

31,095.6

29,359.2 2,264.2

31,623.4 3,300.5

2,172.3 2,891.0 (8,891.6) $ (3,828.3~

2011

$ 10,605.5 19,381.1

29,986.6 491.1

30,477.7

27,039.7 2,707.6

29,747.3 3,340.0

2,151.9 2,471.3 (7,232.7) (2,609.5)

An additional portion of the City's net position ($2,891.0 million) represents resources that are subject to external restrictions on how they may be used.

Governmental Activities. Net position of the City's governmental activities decreased $1,449.8 million to a deficit of $5,844.5 million. However, a significant portion of net position is either restricted as to the purpose they can be used for or they are net investment in capital assets (buildings, roads, bridges, etc.) Consequently, unrestricted net position snowed a $7,537.0 million deficit at the end of this year. This deficit does not mean that the City does not have the resources available to pay its bills next year. Rather, it is the result of having long-term commitments that are greater than currently available resources. Specifically, the City did not include in past annual budgets the full amounts needed to finance future liabilities arising from personnel, property, pollution and casualty claims ($888.6 million) and Municipal employees, Policemen's and Firemen's net pension obligation and post-employment benefits ($6,364.9 million). The City will include these amounts in future years' budgets as they come due. In addition, the remaining deferred inflow of $1,618.4 million will be amortized into income over the life of the concession service agreements.

Revenues for all governmental activities in 2012 were $5,554.5 million, with over half of the City's revenue derived from taxes. Total tax receipts decreased slightly. Total tax revenue includes a decrease in property taxes received of $38.5 million (4.1 percent). Other taxes decreased by $115.8 million (5.3 percent) as a result of decreases in sales and transaction taxes. Federal/State grants vary from year to year depending primarily on the level of spending for programs, construction and other projects.

Expenses for governmental activities in 2012 were $7,004.3 million. This reflects an increase of $195.5 million (2.9 percent) over 2011. Public Safety accounted for approximately 41.5 percent of total expenses.

The cost of all governmental activities was $7,004.3 million The amount that taxpayers paid for these activities through City taxes was only $2,963.7 million. Some of the cost was paid by those who directly benefited from the programs ($750.2 million), or by other governments and organizations that subsidized certain programs with grants and contributions ($920.8 million).

The City paid $919.8 million for the "public benefit" portion with other revenues such as state aid, interest and miscellaneous income.

20

CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2012

Although total net position of business-types activities was $2,016.2 million, these resources cannot be used to make up for the deficit in net position in governmental activities. The City generally can only use this net position to finance the continuing operations of the water, sewer, tollway, and airports activities.

City of Chicago, Illinois Changes in Net Position Years Ended December 31, (in millions of dollars)

Governmental Business-type

      Activities             Activities      

2012      2011      2012      2011

Revenues: Program Revenues: Licenses, Permits, Fines and

Charges for Services            $     750.2    $     680.9       $   1,889.1     $ 1,494.3

Operating Grants and Contributions            748.3 788.8

Capital Grants and Contributions            172.5      282.0      83.2 257.4

General Revenues:

Property Taxes            896.3 934.8

Other Taxes            2,067.4 2,183.2

Grants and Contributions not

Restricted to Specific Programs            692.2 598.4

Other            227.6      240.3       64.0       83.2

Total Revenues            5,554.5        5,708.4      2,036.3 1,834.9

Expenses:

General Government             2,751.9      2,734.4

Public Safety            2,910.2      2,689.4

Streets and Sanitation            228.6      245.9

Transportation            383.5      410.8

Health            123.1      151.2

Cultural and Recreational            146.3      102.8

Interest on Long-term Debt            460.7      474.3

Water            -      -                  417.5 416.3

Sewer            -      -                  195.9 194.8

Midway International Airport            -      -                  225.9 218.1

Chicago-O'Hare International Airport            -      -                 955.3 879.3

Chicago Skyway            -      -                    10.6 10.9

Total Expenses            7,004.3      6,808.8      1,805.2      1,719.4

Change in Net Position Befor.e Transfers...      (1,449.8)      (1,100.4)      231.1      115.5

Special Item            (53.9)

Transfers                                                             -      1.0      -      (1.0)

Change in Net Position            (1,449.8)      (1,099.4)      231 1      60.6

Net (Deficit) Position, Beginning of Year            (4,394.7)      (3,295 3)      1,785.1      1,724.5

Net (Deficit) Position, End of Year            $ (5,844.5)   $ (4,394 7)      $   2,016.2     $ 1,785.1

2011

Total

2,175.2 788.8 539.4

934.8 2,183.2

598.4 323.5 7,543.3

2012

2,639.3 748.3 255.7

896.3 2,067.4

2,734.4 2,689.4 245.9 410.8 151.2 102.8 474.3 416.3 194.8 218.1 879.3 10.9

8,528 2 (984.9)

692.2 291.6 7,590.8

2,751.9 2,910.2 228.6 383.5 123.1 146.3 460.7 417.5 195.9 225.9 955.3 10.6

(1,038 8) (1,570.8)

8,809 5 (1,218.7)

(1,218.7) (2,609.6)

$ (3,828.3)    S (2,609.6)

21

CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2012

Expenses and Program Revenues - Governmental Activities (in millions of dollars)

200    400    600    800   1,000  1,200 1,400  1,600  1,800 2,000 2,200 2,400 2,600 2,800 3,000 3,200

I

General Government Public Safety Streets and Sanitation Transportation

□ Expenses    BProgram Revenues

Health -~p Cultural and Recreational ^—' Interest on Long-term Debt

Revenues by Source - Governmental Activities

Operating Grants and Capital Grants and Contributions Contributions 14% 3%

Licenses, Permits, Fines and Charges for Services 14%

 

Other 4%

Grants and Contributions not restricted to specific programs 12%

Property Tax 16%

22

Other Taxes 37%

CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2012

Business-type Activities. Revenues of the City's business-type activities increased by $231.1 million in 2012 mostly from an increase in the charges for services and rental income revenues. All Funds met debt service coverage ratios set forth in the applicable bond indentures.

• The Water Fund's operating revenue increased by $122.1 million (26.9%) from 2011 due to a 25% increase in water rates and increase in usage resulting from a drought summer in 2012. Operating expenses before depreciation and amortization for the year ended 2012 increased by $7.3 million (2.6%) from the year ended 2011 due to an increase in central services and General Fund reimbursements, increase in power and pumping and increase in administrative and general offset by a decrease in purification resulting from a decrease in costs of sediment disposals.
• The Sewer Fund's operating revenue increased in 2012 by $50.6 million (24.9%) primarily due to an increase in water and sewer rates. Operating expenses before depreciation and amortization for 2012 remained consistent with 2011. Depreciation and amortization increased slightly due to an increase in utility plant.
• Chicago Midway International Airport Fund's operating revenues for 2012 increased by $0,462 million (0.3%) from 2011 primarily due to increased other rentals and fueling fees, offset by decreased landings fees and terminal area use charges. Concessions increased by $1.8 million primarily due to an increase in auto parking, restaurants, and auto rental offset by a decrease in other concessions. Operating expenses before depreciation and amortization increased by $4.2 million (3.8%) million primarily due to an increase in salary and wages, adjustments to a capital lease and an increase in provision for doubtful accounts, offset by a decrease in repairs and maintenance expenses.
• Chicago O'Hare International Airport Fund's operating revenues for 2012 increased by $23.2 million (3.3%) compared to 2011 primarily due to an increased terminal rental and usage charges. Operating expenses before depreciation and amortization increased by $19.1 million (4.4%) primarily due to an increase in salaries and wages, employee benefits, professional and engineering services and capital asset impairment, offset by a decrease in repairs and maintenance expense.
• The Chicago Skyway was leased for 99 years to a private company. The agreement granted the company to operate the Skyway and to collect toll revenue during the term of the agreement. The City received an upfront payment of $1.83 billion of which $446.3 million was used to advance refund all of the outstanding Skyway bonds. The upfront payment is being amortized into non-operating revenue over the period of the lease ($18.5 million annually).

23

CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2012

Expenses and Program Revenues - Business-type Activities (in millions of dollars)

100     200     300     400     500     600     700     800     900    1,000   1,100 1,200

Water

 

Sewer

Chicago Midway International Airport

Chicago-O'Hare International Airport

Chicago Skyway

□ Expenses    ■Program Revenues

24

Revenues by Source - Business-type Activities

 

CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2012

Financial Analysis of the City's Funds

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

Governmental funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, 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.

At December 31, 2012, the City's governmental funds reported combined ending fund balances of $1,593.4 million, a decrease of $262.6 million in comparison with the prior year. Of this total amount $882.1 million was committed to specific expenditures, $177.0 million was assigned to anticipated uses, a deficit of $1,819.5 million was unassigned, $2,332.9 million was of restricted in use by legislation, and $20.9 million was nonspendable.

The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the unassigned fund balance of the General Fund was $33.4 million with a total fund balance of $231.3 million. As a measure of the General Fund's liquidity, it may be helpful to compare both unassigned fund balance and total fund balance to total fund expenditures. Total General Fund balance represents 7.5 percent of total General Fund expenditures. The fund balance of the City's General Fund decreased by approximately $104.2 million during the current fiscal year.

The Federal, State and Local Grants Fund has a total deficit fund balance of $206.1 million. This is $84.4 million lower than 2011 primarily due to slower reimbursement of expenditures.

The Special Taxing Areas Fund has a total fund balance of $1,499.4 million, which is all restricted to specific expenditures.

The Service Concession and Reserve Fund accounts for deferred inflows from non-business type long-term concession and lease transactions and has $624.9 million committed to specific expenditures. The unassigned amount of $1,618.4 million results from the deferred inflows from long-term asset leases.

The Bond, Note Redemption and Interest Fund has a total fund balance of $346.7 million. This is $65.6 million lower than 2011.

The Community Development and Improvement Projects Fund has a total fund balance of $400.4 million. This is $85.4 million lower than 2011 due to increase capital improvement efforts.

Changes in fund balance. The fund balance for the City's governmental funds decreased by $262.6 million in 2012. This includes an decrease in inventory of $3.2 million.

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

Unrestricted net position of the Water, Sewer, Chicago Skyway, Chicago-O'Hare International Airport, and Chicago Midway International Airport Funds at the end of the year amounted to a deficit of $1,354.6 million. The unrestricted net position deficit decreased by $186.9 million due to an increase in the unrestricted net position in Chicago O'Hare International Airport, Chicago Midway International Airport, Water, and Sewer Funds. Other factors concerning the finances of these five funds have already been addressed in the discussion of the City's business-type activities.

General Fund Budgetary Highlights

The City's 2012 Original General Fund Budget was $3,104.3 million. This budget reflects a decrease of $159.4 million (4 9 percent) over the 2011 Budget. The City's 2012 General Fund Budget was approved by the City Council on November 16, 2011. The General Fund revenues on a budgetary basis were $27.4 million less than the final budget as a result of lower transfers in and lower than expected use of budgeted prior years' surplus, offset by higher

25

CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2012

than expected taxes. Expenditures were $27.4 million more than budgeted as a result of unfavorable variances in public safety, primarily as a result of higher than expected personnel related expenses. Additional information on the City's budget can be found in Note 3 under Stewardship, Compliance and Accountability within this report.

The General Fund revenues and expenditures in 2012 ended the current fiscal year with an unassigned fund balance of $33.4 million.

Capital Asset and Debt Administration

Capital Assets. The City's capital assets for its governmental and business-type activities as of December 31, 2012 amount to $20,385.2 million (net of accumulated depreciation). These capital assets include land, buildings and system improvements, machinery and equipment, roads, highways and bridges, and property, plant and equipment.

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

• The City continues its commitment to sustainable design in new construction projects utilizing the Leadership in Energy & Environmental Design (LEED) strategy. Completed construction in 2012 included a new fire house for Engine Company 16 totaling $16.8 million, Police District 12 totaling $3.4 million and the Grand Crossing Reading Garden totaling $0.6 million
• During 2012 the City completed $116.4 million in bridge and viaduct reconstruction projects, $90.3 million street construction projects and $3.5 million in street lighting projects. At year end, Infrastructure projects still in process had expenses totaling nearly $606.8 million.
• At the end of 2012 the Water Fund had $2,861.3 million invested in utility plant, net of accumulated depreciation. During 2012, the Water Fund expended $318.9 million on capital activities. This included $2.2 million for structures and improvements, $133.9 million for distribution plant, $5.8 million for equipment, and $177.2 million for construction in progress.

During 2012, net completed projects totaling $63.7 million were transferred from construction in progress to applicable capital accounts. The major completed projects were related to installation and replacements of water mains ($63.4 million). The 2012 Water Main Replacement Program completed 79.7 miles of water mains of which approximately 31.0 miles were completed by in-house crews.

• At the end of 2012, the Sewer Fund totaled capital assets of $1,671.3 million. During 2012, the Sewer Fund had capital additions being depreciated of $246.6 million, and completed projects totaling $79.2 million were transferred from construction in progress to applicable facilities and structures capital accounts. The 2012 Sewer Main Replacement Program completed 17.4 miles of sewer mains and 51.4 miles of relining of existing sewer mains at a cost of $246.6 million.
• At the end of 2012, Chicago-Midway International Airport totaled $1,167.3 million, invested in net capital assets. During 2011, the Airport had additions of $64.8 million related to capital activities. This included $3.4 million for land acquisition and the balance of $61.4 million for construction projects relating to terminal improvements, parking and roadway enhancements, and runway improvements.
• At the end of 2012 Chicago-O'Hare International Airport totaled $6.5 billion, invested in net capital assets. During 2012, the Airport had additions of $476.5 million related to capital activities. This included $8.6 million for land acquisition and the balance of $467.9 million for terminal improvements, road and sidewalk enhancement, runway and taxiway improvements, along with general parking enhancements. During 2012, completed projects totaling $314.8 million were transferred from construction in progress to applicable buildings and other facilities capital accounts. These major completed projects were related to runway improvements, heating and refrigeration, road and sidewalk enhancements, electrical, water drainage, fuel system enhancements and terminal improvements.

26

CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2012

City of Chicago, Illinois Capital Assets (net of depreciation) (in millions of dollars)

Governmental Business-type

      Activities             Activities             Total      

2012      2011      2012      2011      2012 2011

$ 1,024.7

1,310.4 9,141.0 337.3

$ 11,801.3

Land            $ 1,404.5

Works of Art and

Historical Collections            13.2

Construction in Progress            644.3

Buildings and Other Improvements            1,677.7

Machinery and Equipment            255.6

Infrastructure            3 874.4

Total             $ 7,869.7

$ 1,401.0

1,548.3 9,618.2 324.3

13.1

466.3 1,699.0

313.6 3,686.9

$ 7,579.9       $ 12,515.5

$   1,012.6       $ 2,429.2

13.2

2,192.6 11,295.9 579.9 3,874.4 $ 20,385.2

$ 2,413.6

13.1 1,776.7 10,840.0 650.9 3,686.9 $ 19,381.2

Information on the City's capital assets can be found in Note 7 Capital Assets in this report.

Debt. At the end of the current fiscal year, the City had $7,315.4 million in General Obligation Bonds and $696.4 million in General Obligation Certificates and Other Obligations outstanding. Other outstanding long-term debt is as follows: $193.0 million in Motor Fuel Tax Revenue Bonds; $577.3 million of Sales Tax Revenue Bonds; $112.2 million in Tax Increment Financing Bonds; and $11,967.8 million in Enterprise Fund Bonds and long-term obligations. For more detail, refer to Note 10 Long-term Obligations in the Basic Financial Statements.

City of Chicago, Illinois General Obligation and Revenue Bonds (in millions of dollars)

Total

Governmental Activities

Business-type Activities

2011

2012

2011

2012

2011

2012

General Obligation            $ 8,011.8

Installment Purchase Agreement      

Tax Increment            112.2

Revenue Bonds            770.3

Total             $ 8,894.3

$ 7,777.7

131.6 776.0 $ 8,685.3

11,967.8 $ 11,967.8

11,715.0 $ 11,715.0

$ 8,011.8

112.2 12,738.1 $ 20,862.1

$ 7,777.7

131.6 12,491.0 $ 20,400.3

During 2012, the City issued the following: General Obligation Bonds:

• General Obligation Bonds, Project Series 2012A, Taxable Project Series 2012B, and Refunding Series 2012C ($594.9 million) .
• General Obligation Commercial Paper Notes ($133.8 million)

27

CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2012

Enterprise Fund Revenue Bonds and Notes:

• • Chicago-O'Hare International Airport Third Lien Revenue Refunding Bonds, Series 2012A (Alternative Minimum Tax - AMT), Series 2012B (AMT) and Series 2012C (Non-AMT) ($728.9 million)
  • Chicago-O'Hare International Airport Passenger Facility Charge Revenue Refunding Bonds, Series 2012A (Non-AMT) and 2012B (AMT) ($452.1 million)
• Chicago-O'Hare International Airport General Commercial Paper Notes ($50.6 million)
• Second Lien Water Revenue Bonds, Project Series 2012 ($399.4 million)
• Second Lien Wastewater Transmission Revenue Bonds, Project and Refunding Series 2012 ($276.5 million)

At December 31, 2012 the City had credit ratings with each of the three major rating agencies as follows:

Moody's

Fitch

Rating Agency

Standard & Poors

General Obligation: City

Revenue Bonds: O'Hare Airport:

First Lien General Airport Revenue Bonds

First Lien Passenger Facility Charge (PFC) Midway Airport:

First Lien

Second Lien Water:

First Lien

Second Lien Wastewater:

First Lien

Junior Lien

Aa3

A2 A2

A2 A3

Aa2 Aa3

Aa2 Aa3

A+

A-A-

A A-

AA AA-

AA-A+

AA-

A-A

A A-

AA+ AA

NR AA

Sales Tax Motor Fuel Tax

Aa3 Aa3

AAA AA+

AA-A-

ln 2012, the City closed and extinguished the First and Second General Airport Revenue (GAR) bonds. The third Lien bonds became the First Lien bonds.

Economic Factors and Next Year's Budgets and Rates

The City's finances are closely tied with the local, national, and global economies. Throughout 2012, the local and national economies experienced moderate growth, continuing the recovery from the economic downturn. The strong commercial real estate market seen throughout 2011 continued into 2012, and 2012 also saw the housing market join in this recovery. Home sales increased by 22 percent over 2011, and home prices, which had been slower to recover, ticked up 5.7 percent over 2011. Nationwide, retail sales grew 5 percent over 2011 in 2012, and consumer confidence surged during the holiday season. The average national unemployment rate decreased from 8.9 percent in 2011 to 8.1 percent in 2012, and Chicago's unemployment rate fell from 11.3 percent in 2011 to 10.1 percent in 2012. Tourism and business and convention travel to Chicago reached near-record levels in 2012, with 46.2 million visitors to the City, an increase of 6 percent over 2011. This growth was evident in local hotel occupancy, which was up 4 percent in 2012 from 2011, and revenue per available room, which was up 10 percent in 2012 from 2011.

28

CITY OF CHICAGO, ILLINOIS MANAGEMENT'S DISCUSSION AND ANALYSIS YEAR ENDED DECEMBER 31, 2012

The City's 2013 General Fund budget, totaling $3,159 million, was approved by a 46 to 3 vote of City Council on November 15, 2012. The 2013 budget balanced a preliminary budget shortfall of $369 million by cutting spending and increasing efficiencies without raising any taxes or introducing any new fees. The 2013 Corporate Fund shortfall was the smallest preliminary budget deficit since the recession, demonstrating the progress and reforms made in the 2012 budget and throughout the year. The 2013 budget built on that progress, investing in youth, public safety, and critical infrastructure while continuing to phase out the heavy reliance on nonrecurring revenue sources, including funds from the City's asset concession reserves, seen prior to 2012. In 2012, the City returned $20 million to its long-term reserves, and the 2013 budget commits an additional $15 million to those reserves.

Requests for Information

This financial report is designed to provide a general overview of the City's finances for all of those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Chicago Comptroller's Office.

29

 

Exhibit 1

CITY OF CHICAGO, ILLINOIS STATEMENT OF NET POSITION December 31, 2012

(Amounts are in Thousands of Dollars)

ASSETS AND DEFERRED OUTFLOWS

Cash and Cash Equivalents       

Investments       

Cash and Investments with Escrow Agent       

Receivables (Net of Allowances):

Property Tax       

Accounts       

Internal Balances       

Inventories       

Restricted Assets:

Cash and Cash Equivalents       

Investments       

Other Assets       

Capital Assets:

Land, Art, and Construction in Progress       

Other Capital Assets, Net of Accumulated Depreciation

Total Capital Assets       

Total Assets . Deferred Outflows

Governmental Activities

$ 729,095 1,626,647 499,754

1,258,648 929,230 (35,190) 20,885

4,495 622,628 132,814

2,062,009 5,807,660 7,869,669

13,658,675

224,236

Primary Government

Business-type Activities

152,999 170,373

336,613 35,190 18,819

997,524 2,218,063 514,477

2,572,971 9,942,547 12,515,518

16,959,576

253,120

Total

882,094 1,797,020 499,754

1,258,648 1,265,843

39,704

1,002,019 2,840,691 647,291

4,634,980 15,750,207 20,385,187

30,618,251

477,356

Total Assets and Deferred Outflows             $   13,882,911    $     17,212,696    $ 31,095,607

1,618,360

LIABILITIES AND DEFERRED INFLOWS

Voucher Warrants Payable                                                                  $      601,946

Short-term Debt             672

Accrued Interest             210,413

Accrued and Other Liabilities             335,930

Unearned Revenue             96,867

Long-term Liabilities:

Due Within One Year             280,720

Derivative Instrument Liability             255,376

Due in More Than One Year             16,327,129

Total Liabilities             18,109,053

Deferred Inflows

420,261 $

236,915 177,937 183,206

215,231

253,120 12,027,650 _ 13,514,320 _

1,682,121

1,022,207 672 447,328 513,867 280,073

495,951 508,496 28,354,779 31,623,373

3,300,481

NET POSITION

Net Investment in Capital Assets Restricted for:

Capital Projects       

Debt Service       

Special Taxing Areas       

Passenger Facility Charges

Contractual Use Agreement

Noise Mitigation Program ..

Airport Purposes       

Unrestricted (Deficit)       

Total Net Position       

(215,961)

2,172,349

173,130 420,726

1,499,414 140,142 141,566 245,200 270,855

(8,891,629)

2,388,310

409,102 1,499,414

173,130 11,624

140,142 141,566 245,200 270,855 (1,354,572)

(7,537,057)

$    (5,844,502)   $       2,016,255    $ (3,828,247)

31

See notes to basic financial statements.

Exhibit 2

CITY OF CHICAGO, ILLINOIS STATEMENT OF ACTIVITIES Year Ended December 31, 2012 (Amounts are in Thousands of Dollars)

Licenses, Permits, Fines and

Functions/Programs            Expenses      Charges for Services

Primary Government Governmental Activities:

General Government            $     2,751,944      $ 452,892

Public Safety             2,910,160      199,572

Streets and Sanitation             228,622      42,138

Transportation             383,510      39,343

Health             123,055      1,751

Cultural and Recreational             146,283      14,454

Interest on Long-term Debt              460,660       -_

Total Governmental Activities             7,004,234       750,150

Business-type Activities:

Water             417,499      576,287

Sewer             195,911      253,912

Chicago Midway International Airport             225,867      201,749

Chicago-O'Hare International Airport             955,276      857,114

Chicago Skyway              10,621            -_

Total Business-type Activities             1,805,174            1,889,062

Total Primary Government             $     8,809,408      $      2,639,212

See notes to basic financial statements.

32

Program Revenues            Net (Expense) Revenue and Changes in Net Assets

      Primary Government      

Operating Capital

Grants and      Grants and      Governmental Business-type

Contributions      Contributions      Activities      Activities Total

11,615

160,841

172,456

521,362 115,976

95,675 15,243

748,256

(1,766,075) (2,594,612) (186,484) (183,326) (25,629) (116,586) (460,660) (5,333,372)

(1,766,075) (2,594,612) (186,484) (183,326) (25,629) (116,586) (460,660) (5,333,372)

2,500 2,500 4,681 73,538

83,219

161,288 60,501 (19,437) (24,624) (10,621)

167,107

161,288 60,501 (19,437) (24,624) (10,621)

167,107

(5,333,372)

167,107

748,256

255,675

$

(5,166,265)

231,146 1,785,109

General Revenues Taxes:

Property Tax       

Utility Tax       

Sales Tax       

Transportation Tax       

Transaction Tax       

Special Area Tax       

Recreation Tax       

Other Taxes       

Grants and Contributions not Restricted to

Specific Programs       

Unrestricted Investment Earnings       

Miscellaneous       

Total General Revenues       

Change in Net Assets       

Net Position - Beginning       

Net Position - Ending       

896,246 548,682 294,417 373,544 281,957 274,617 163,194 131,086

25,197 38,842

64,039

692,232 92,050 135,511 3,883,536 (1,449,836) (4,394,666)

$    (5,844,502)       $ 2,016,255

896,246 548,682 294,417 373,544 281,957 274,617 163,194 131,086

692,232 117,247 174,353 3,947,575 (1,218,690) (2,609,557) $ (3,828,247)

33

Exhibit 3

CITY OF CHICAGO, ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2012

(Amounts are in Thousands of Dollars)

General

ASSETS

Cash and Cash Equivalents             $ 745

Investments             72,702

Cash and Investments with Escrow Agent       

Receivables (Net of Allowances):

Property Tax       

Accounts             219,300

Due From Other Funds             165,078

Due From Other Governments             222,604

Inventories             20,885

Restricted Cash and Cash Equivalents             389

Restricted Investments       

Other Assets                   -

Total Assets             $ 701,703

LIABILITIES, DEFERRED INFLOWS AND FUND BALANCE Liabilities:

Voucher Warrants Payable             $ 181,998

Bonds, Notes and Other Obligations Payable - Current       

Accrued Interest       

Due To Other Funds             139,397

Accrued and Other Liabilities             110,177

Claims Payable             37,685

Deferred Revenue             1,144

Total Liabilities             470,401"

Deferred Inflows                   -_

Fund Balance:

Nonspendable             20,885

Restricted       

Committed       

Assigned             177,000

Unassigned             33,417

Total Fund Balance             231,302

Total Liabilities, Deferred Inflows and Fund Balance             $ 701,703

Federal, State and Local Grants

$

20,931 52,705

10,809 29,694 362,651

3,220

5,362 $ 485,372

$ 157,322 271

281,434 9,467

242,966 691,460

27,821

(233,909) (206,088) $ 485,372

Special Taxing Areas

623,433 620,267

350,032 3,732 258,238

$ 1,855,703

49,612

11,534 3,872

291,271

356,289

1,499,414

1,499,414

$      1,855,703

34

See notes to basic financial statements.

Service      Community

Concession      Bond, Note      Development           Other      Total

and      Redemption      and Improvement      Governmental      Governmei

Reserve      and Interest      Projects             Funds      Funds

$              202    $          10,922    $              442    $        72,420      $ 729,095

40               128,886                528,111             223,936      1,626,647

399,260                  1,781              98,713      499,754

470,746                      -              437,870      1,258,648

1,305                37,658                  2,204              10,910      285,918

30,068                 67,799              93,854      644,731

3,017                     -               51,040      639,312

20,885

674                     -                       211                   -      4,495

622,628                    -                       -                    -      622,628

      _:      -      -      -             5,362

$        624,849    $      1,080,557    $         600,548    $       988,743      $ 6,337,475

$               -      $               -       $           99,249    $        76,771      $ 564,952

89,970                      -                  5,910      96,151

208,254                      -                  2,159      210,413

97,857            205,273      735,495

3,032              19,255      145,803

37,685

      -      435,614      -      364,254      1,335,249

      -      733,838      200,138      673,622      3,125,748

1,618,360      -      -      - 1,618,360

20,885

189,883      400,410      215,383 2,332,911

624,849      156,836      -      100,442 882,127

177,000

(1,618,360)       _:      -      (704) (1,819,556)

(993,511)       346,719       400,410      315,121 1,593,367

$        624,849    $      1,080,557    $      600,548    $      988,743      $ 6,337,475

Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds            7,869,669

Other long-term assets are not available to pay for current-period expenditures and therefore are deferred in the funds ..      1,259,145

Certain liabilities, including bonds payable, are not due and payable in the current

period and therefore are not reported in the funds            (16,566,683)

Net position of governmental activities                                                               $      (5,844,502)

35

Exhibit 4

CITY OF CHICAGO, ILLINOIS

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended December 31, 2012 (Amounts are in Thousands of Dollars)

General

Revenues:

Property Tax        $

Utility Tax             462,475

Sales Tax (Local and State)             572,185

Transportation Tax             177,890

State Income Tax             282,779

Transaction Tax             241,111

Special Area Tax       

Recreation Tax             163,194

Other Taxes             112,188

Federal/State Grants             1,074

Internal Service             302,924

Licenses and Permits             117,568

Fines             290,799

Investment Income             5,439

Charges for Services             133,021

Miscellaneous              58,009

Total Revenues              2,920,656

864,556 24,371 1,956,152 178,065 53,815 13

2,237

Expenditures: Current:

General Government       

Health       

Public Safety       

Streets and Sanitation       

Transportation       

Cultural and Recreational       

Employee Pensions       

Other       

Capital Outlay       

1,645 515

Debt Service:

Principal Retirement       

Interest and Other Fiscal Charges             

Total Expenditures              3,081,369

Revenues (Under) Over Expenditures       (160,713)

Federal, State and Local Grants

876,790

876,790

391,817 101,558 112,429

325,491 16,076

8,564 5,259

961,194

(84,404)

Special Taxing Areas

370,454

29,771 406 5,130

405,761

305,952 38 954 116 66,773 8,557

382,393

23,368

36

Continued on following pages.

$

Service Concession and Reserve

18,084 21,033

Bond, Note Redemption and Interest

487,714 22,324 22,105 18,635

82

29,153 23,160

Community Development

and Improvement Projects

4,812 4,422

Nonmajor Governmental Funds

$ 453,684 63,883

177,019 108,506 40,846

18,816

16,361

15,711 3,626 37,297 23,757

Total Governmental Funds

941,398 548,682 594,290 373,544 391,285 281,957 370,454 163,194 131,086 877,864 319,285 117,568 306,510 90,885 170,724 135,511

39,117

603,173

9,234

959,506

5,814,237

100                      -                       -                  244,116      1,806,541

1,600      127,567

6,424      2,075,959

49,919      228,100

68,224      514,303

77,738      102,384

458,951      458,951

924      11,725

339,912                  90,429      435,600

296,084                     -                    43,025      340,754

-             431,588       -       29,856       461,962

100       727,672  ,      339,912      1,071,206 6,563,846

39,017      (124,499)      (330,678)      (111,700)       (749,609)

37

Exhibit 4 - Concluded

CITY OF CHICAGO, ILLINOIS

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended December 31, 2012 (Amounts are in Thousands of Dollars)

Federal, State and Local

General Grants

Special Taxing Areas

Other Financing Sources (Uses):

Issuance of Debt             $          55,000      $      -      $

Premium       

Payment to Refunded Bond Escrow Agent       

Transfers In             31,617      - 68,675

Transfers Out              (26,965)            -_            (44,264)

Total Other Financing Sources (Uses)              59,652            -_            24,411

Net Changes in Fund Balance             (101,061)      (84,404) 47,779

Fund Balance, Beginning of Year             335,533      (121,684) 1,451,635

Change in Inventory              (3,170)      

Fund Balance, End of Year             $      231,302       $        (206,088)      $ 1,499,414

See notes to basic financial statements.

38

Service Concession Agreements and Reserve

Bond, Note Redemption and Interest

Community Development

and Improvement Projects

Nonmajor Governmental Funds

Total Governmental Funds

328 (12,358)

337,410 (268,397) (10,105)

207,566 36,166

3,843 (2,322)

122,415

74,287 (82,736)

722,391 36,166 (268,397)

178,750 (178,750)

113,966

490,160

58,908

245,253

(12,030)

26,987 (1,020,498)

(65,591) 412,310

(85,425) 485,835

2,266 312,855

(259,449) 1,855,986 (3,170)

400,410

1,593,367

$       315,121 $

$     (993,511)     $      346,719 $

39

Exhibit 5

CITY OF CHICAGO, ILLINOIS

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended December 31, 2012 (Amounts are in Thousands of Dollars)

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

Net change in fund balances - total governmental funds             $ (259,449)

Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current

period        278,635

Revenues in the statement of activities that do not provide current financial

resources are not reported as revenues in the funds        (63,855)

Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net

assets. This is the amount by which proceeds exceeded repayments        (150,751)

Certain expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as

expenditures in governmental funds        (1,254,416)

Change in the net position of governmental activities             $ (1,449,836)

40

Exhibit 6

CITY OF CHICAGO, ILLINOIS

STATEMENT OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND (BUDGETARY BASIS) Year Ended December 31, 2012 (Amounts are in Thousands of Dollars)

Original Budget

Revenues:

Utility Tax             $ 475,306

Sales Tax             250,748

Transportation Tax             174,271

Transaction Tax             192,167

Recreation Tax             160,956

Business Tax             94,146

State Income Tax             209,401

State Sales Tax             284,421

State Auto Rental             3,354

Federal/State Grants             1,568

Internal Service             362,398

Licenses and Permits *             135,110

Fines             290,131

Investment Income             4,200

Charges for Services             125,141

Municipal Utilities             8,667

Leases, Rentals and Sales             9,680

Miscellaneous             57,100

Issuance of Debt, Net of

Original Discount             50,000

Budgeted Prior Years' Surplus

and Reappropriations             143,549

Transfers In/Out              72,000

Total Revenues             3,104,314

Expenditures: Current:

General Government *             960,820

Health             25,407

Public Safety             1,881,453

Streets and Sanitation             178,644

Transportation            55,610

Debt Service:

Principal Retirement             1,645

Interest and Other Fiscal Charges              735

Total Expenditures             3,104,314

Final Budget

475,306 250,748 174,271 192,367 160,956 94,146 209,401 284,421 3,354 1,568 362,398 135,110 292,631 4,200 125,141 8,667 9,680 57,100

50,000

143,549 72,000

3,107,014

963,520 25,407 1,881,453

178,644 55,610

1,645 735

3,107,014

Actual Amounts

462,475 272,312 177,890 241,111 163,194 108,278 282,779 299,873

3,910

1,074 302,924 117,568 290,799

5,439 124,606

8,415 14,747 43,262

55,000

72,347 31,617

3,079,620

882,437 25,896 1,938,657 178,338 51,914

1,645 733

3,079,620

Variance Positive (Negative)

(12,831) 21,564 3,619 48,744 2,238 14,132 73,378 15,452 556 (494) (59,474) (17,542) (1,832) 1,239 (535) (252) 5,067 (13,838)

5,000

(71,202) (40,383)

(27,394)

81,083 (489) (57,204) 306 3,696

27,394

41

Revenues Over (Under) Expenditures ... $

See notes to basic financial statements. * Housing Revenue Fund is included.

Exhibit 7

CITY OF CHICAGO, ILLINOIS STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2012

(Amounts are in Thousands of Dollars)

Business-type Activities - Enterprise Funds

Major Funds

Chicago-O'Hare International Airport

12,609

490,818 (212,871)

Water

ASSETS AND DEFERRED OUTFLOWS CURRENT ASSETS:

Cash and Cash Equivalents      $      84,429

Investments            44,188

Accounts Receivable (Net of

Allowances)            128,805

Due from Other Funds            20,607

Due from Other Governments      

Inventories            17,356

Total Current Assets            295,385

RESTRICTED ASSETS:

Cash and Cash Equivalents            39,102

Investments            395,439

Total Restricted Assets            434,541

NONCURRENT ASSETS:

Other Assets            16,446

Property, plant, and equipment:

Land            5,083

Structures, Equipment and

Improvements            3,462,288

Accumulated Depreciation            (868,311)

Construction Work in Progress            262,280

Total Property, Plant and Equipment..      2,861,340

Total Noncurrent Assets            2,877,786

Total Assets            3,607,712

DEFERRED OUTFLOWS            126,371

Total Assets and Deferred Outflows      $ 3,734,083

Chicago Skyway

Sewer

837 396

58

11,785 36,079

13,663 14,437

17,722 16,952

74,328 18,840

1,463

Chicago Midway International Airport

38,226 72,758

1,291

129,305

75,964

91,589 28,482 28,170

71,216 270,573

122,523 197,960

259,225

341,789

320,483

764,683 1,354,091

10,187

11,694

134,927

2,118,774

560

2,072,542 (434,774) 33,011

112,840

1,415,216 (430,549) 69,847

1,167,354

1,302,281 1,698,728 36,794

341,223

893,588

290,556

1,671,339

7,014,287 (2,566,099) 1,183,153

1,683,033 2,154,127

6,524,929

300,743

6,866,152 9,244,151

302,034

89,955

$    2,244,082    $    1,735,522    S     9,244,151    S 302,034

Total

152,999 170,373

308,443 82,366 28,170 18,819

761,170

997,524 2,218,063

3,215,587

514,477

1,024,680

14,455,151 (4,512,604) 1,548,291

12,515,518

13,029,995 17,006,752 253,120 17,259,872

42

See notes to basic financial statements.

Business-type Activities - Enterprise Funds

Major Funds

Total

Water

Sewer

Chicago Midway International Airport

Chicago-O'Hare International Airport

Chicago Skyway

LIABILITIES

CURRENT LIABILITIES:

Voucher Warrants Payable             $ 31,875

Due to Other Funds             11,196

Accrued and Other Liabilities             82,296

Unearned Revenue              26,746

Total Current Liabilities        152,113

PAYABLE FROM RESTRICTED ASSETS: Current Liabilities Payable From

Restricted Assets        130,427

Total payable from restricted assets 130,427

NONCURRENT LIABILITIES:

Revenue Bonds Payable             2,061,696

Derivative Instrument Liability             126,371

Long-term Purchase Obligation              1,027

Total Noncurrent Liabilities        2,189,094

Total Liabilities        2,471,634

DEFERRED INFLOWS              -_

NET POSITION: Net Investement

in Capital Assets        1,073,309

Restricted Net Position:

Debt Service       

Capital Projects        1,308

Passenger Facility Charges       

Contractual Use Agreement       

Noise Mitigation Program       

Other       

Unrestricted Net Position        187,832

Total Net Position             $ 1,262,449

4,639 12,113 26,869 20,386

120,925 47,176 117,129 183,206

21,738 20,142 774 9,836

52,490

265 15

62,408 3,710 7,190

280

468,436

64,007

126,238

468,011 468,011

199,546

811,263

138,032

811,263

138,032

1,386,443 89,955

1,476,398 1,678,437

12,027,650 253,120 1,027

12,281,797 13,561,496

74,793 74,793

7,167,495

7,167,495 7,835,052

1,412,016 36,794

280

1,682,121

1,448,810 1,576,093

651,476

455,195

(82,226)

11,624 807 5,117 26,234 124,576 36,725 36,572

1,682,121

290,556

2,388,310

50,014

121,001 135,025 115,332 120,624 234,130 31,511

60,436

11,624 173,130 140,142 141,566 245,200 270,855 (1,354,572)

(1,670,923)

$     565,645    $     159,429    $    1,409,099    S    (1,380,367)   $ 2,016,255

43

See notes to basic financial statements.

Exhibit 8

CITY OF CHICAGO, ILLINOIS

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

PROPRIETARY FUNDS

Year Ended December 31, 2012

(Amounts are in Thousands of Dollars)      

Business-type Activities - Enterprise Funds

Major Funds

Chicago      Chicago-

Midway      O'Hare

International      International Chicago

Water           Sewer           Airport      Airport           Skyway Total

Operating Revenues:

Charges for Services                             $     562,572   $    252,943   $      70,912      $     436,909   $           -     $ 1,323,336

Rent                                                          -                -            86,921      265,655                - 352,576

Other             13,715      969      -      -      -      14,684

Total Operating Revenues             576,287      253,912      157,833      702,564      -      1,690,596

Operating Expenses:

Personal Services             109,525      21,254      44,463      163,542      -      338,784

Contractual Services             49,104      3,085      15,011      74,307      -      141,507

Repairs and Maintenance             1,671      57,527      37,990      88,784      -      185,972

Commodities and Materials             29,137      -                -      -      -      29,137

Depreciation and Amortization             48,887      27,735      55,119      216,762      10,621      359,124

Capital Asset Impairment             -      -                -      21,601      -      21,601

General Fund Reimbursements             68,183      31,709              -      -      -      99,892

Other             31,845      -      16,833      123,546      -      172,224

Total Operating Expenses             338,352      141,310      169,416      688,542      10,621 1,348,241

Operating Income (Loss)             237,935      112,602      (11,583)      14,022      (10,621) 342,355

Nonoperating Revenues (Expenses):

Investment Income (Loss)             270            1,021      2,292      21,612                  2 25,197

Interest Expense             (79,147)         (54,601)      (56,451)      (266,734)                - (456,933)

Passenger Facility Charges             -                -      43,916      154,550                - 198,466

Other             (1,341)            (154)      2,126      19,565      18,646      38,842

Total Nonoperating Revenues

(Expenses)             (80,218)      (53,734)      (8,117)      (71,007)       18,648      (194,428)

Capital Grants             2,500      1500      4JS81      73,538      -      83,219

Net Income (Loss)             160,217           61,368          (15,019)           16,553              8,027 231,146

Net Position (Deficit)-Beginning of Year ..      1,102,232         504,277         174,448        1,392,546        (1,388,394) 1,785,109

Net Position (Deficit)-End of Year             $   1,262,449   $     565,645   $     159,429   $   1,409,099   $    (1,380,367)  $ 2,016,255

See notes to basic financial statements

44

Exhibit 9

CITY OF CHICAGO, ILLINOIS STATEMENT OF CASH FLOWS PROPRIETARY FUNDS Year Ended December 31, 2012 (Amounts are in Thousands of Dollars)

Business-type Activities - Enterprise Funds

Major Funds

Chicago Midway International Airport

Chicago Skyway

Sewer

242,313 $ (28,740) (43,280) (26,720)

143,573

309,488

(149,442) 2,500 (1,973)

(28,429) (55,427)

76,755

(162,467) 1,512

(403) 2

(401)

(160,955)

(386)

59,373

1,223

29,565

Water

Cash Flows from Operating Activities:

Received from Customers       $      546,056

Payments to Vendors             (84,738)

Payments to Employees             (109,525)

Transactions with Other City Funds             (80,972)

Cash Flows Provided By

Operating Activities        270,821

Cash Flows from Capital and Related Financing Activities:

Proceeds from Issuance of Bonds        447,538

Proceeds from Federal Government       

Acquisition and Construction of

Capital Assets        (253,684)

Capital Grant Receipts       

Bond Issuance Costs        (2,604)

Payment to Refund Bonds        (35,595)

Principal Paid on Debt        (59,859)

Interest Paid        (91,514)

Passenger Facility Charges       

Noise Mitigation Program       

Termination of Swaption       

Deposit       

Other             ■_

Cash Flows (Used in) Provided By Capital

and Related Financing Activities             4,282

Cash Flows from Investing Activities:

Sale (Purchases) of Investments, Net             (212,113)

Investment Interest             2,457

Cash Flows (Used in) Provided By

Investing Activities        (209,656)

Net Increase (Decrease) in Cash and

Cash Equivalents        65,447

Cash and Cash Equivalents,

Beginning of Year              58,084

Cash and Cash Equivalents,

End of Year       S 123,531

147,683 (65,722) (36,136) (8,510)

Chicago-O'Hare International Airport

37,315

i 621,441 (224,786) (143,905) (58,987)

193,763

34,639

(65,684) 7,413

(31,876) (23,366) (65,227) 46,542 (23,591) (8,250)

2,126

1,327,899 28,500

38

(127,274)

(366,583) 71,074 (6,981) (1,372,342) (140,620) (381,764) 173,648 (32,385)

79,541 3,080

(699,554)

457,313 25,320

82,621

(7,338)

482,633 (23,158) 826,067

802,909

141,646

1,938    $     134,308 $

Total

1,557,493 (403,986) (332,846) (175,189)

645,472

2,119,564 28,500

15

15

(835,393) 80,987 (11,558) (1,439,813) (252,274) (593,932) 220,190 (55,976) (8,250) 15 2,164

(745,776)

161,871 32,371

194,242

93,938

1,056,585

837    $ 1,150,523

45

i

See notes to basic financial statements

Exhibit 9 - Concluded

CITY OF CHICAGO, ILLINOIS

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS

Year Ended December 31, 2012

(Amounts are in Thousands of Dollars)

Business-type Activities - Enterprise Funds

Major Funds

Water

Total

Chicago Midway International Sewer Airport

Chicago-O'Hare International Chicago Airport Skyway

Reconciliation of Operating Income to Cash Flows from Operating Activities:

Operating Income (Loss)             $   237,935    $   112,602    $    (11,583)   $     14,022    $   (10,621)   $ 342,355

380,725 39,907

(67,655) (14,860)

18,934

(56,008)

2,074

Adjustments to Reconcile:

Depreciation and Amortization             48,887      27,735      55,119      238,363 10,621

Provision for Uncollectible Accounts             15,714      8,842      371 14,980

Change in Assets and Liabilities-

increase) Decrease in Receivables             (42,570)        (22,658)      3,289 (5,716)

(Increase) Decrease in Due From Other Funds             (3,100)      4,305      (12,790) (3,275)

Increase (Decrease) in Voucher Warrants

Payable and Due to Other Funds             (8,549)      1,820      16,648 9,015

Increase (Decrease) in Deferred Revenue

and Other Liabilities             23,515      10,068      (14,182) (75,409)

(Increase) Decrease in Inventories and

Other Assets             (1,011)       859_       443_      1,783       -_       

Cash Flows from

Operating Activities             $   270,821    $   143,573    $    37,315    $    193,763    $       -      $ 645,472

Supplemental Disclosure of Noncash Items:

Capital asset additions in 2012 have outstanding accounts payable

and accrued and other liabilities             $    65,787    $    63,913    $    33,248    $    148,476    $      $ 311,424

See notes to basic financial statements.

46

Exhibit 10

CITY OF CHICAGO, ILLINOIS STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS December 31, 2012

(Amounts are in Thousands of Dollars)

Pension Trust Agency

ASSETS

Cash and Cash Equivalents                                                               $      185,408        $ 118,148

Investments             - 92,504

Investments, at Fair Value Bonds and U.S. Government

Obligations             2,336,591

Stocks             5,343,390

Mortgages and Real Estate             664,762

Other             1,906,928

Cash and Investments with

Escrow Agent             - 10,046

Property Tax Receivable             - 91,534

Accounts Receivable, Net             663,429 57,380

Due From City             55,574

Invested Securities Lending Collateral              1,126,065            -

Total Assets             $   12,282,147        $ 369,612

Deferred Outflows        301

Total Assets and Deferred Outflows        12,282,448

LIABILITIES

Voucher Warrants Payable             $       356,780        $ 35,481

Accrued and Other Liabilities             - 334,131

Deferred Revenue       

Securities Lending Collateral             1,126,065       -

Total Liabilities             1,482,845        $ 369,612

NET POSITION

Held in Trust for Employees        10,799,603

Total Net Position             $ 10,799,603

See notes to basic financial statements.

47

Exhibit 11

CITY OF CHICAGO, ILLINOIS

STATEMENT OF CHANGES IN PLAN NET POSITION FIDUCIARY FUNDS - PENSION TRUST FUNDS

Year Ended December 31, 2012 (Amounts are in Thousands of Dollars)

Total

ADDITIONS Contributions:

Employees             $ 295,990

City             464,168

Total Contributions              760,158

Investment Income: Net Appreciation in

Fair Value of Investments             1,057,568

Interest, Dividends and Other             241,995

Investment Expense              (49,831)

Net Investment Income             1,249,732

Securities Lending Transactions:

Securities Lending Income             3,741

Securities Lending Expense              1,440

Net Securities Lending Transactions              5,181

Total Additions             2,015,071

DEDUCTIONS

Benefits and Refunds of Deductions             1,731,545

Administrative and General              20,059

Total Deductions             1,751,604

Net Increase in Net Position             263,467

Net Position:

Beginning of Year             10,536,136

End of Year             $ 10,799,603

See notes to basic financial statements.

48

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

1) Summary of Significant Accounting Policies

The City of Chicago (City), incorporated in 1837, is a "home rule" unit under State of Illinois (State) law. The City has a mayor-council form of government. The Mayor is the Chief Executive Officer of the City and is elected by general election. The City Council is the legislative body and consists of 50 members, each representing one of the City's 50 wards. The members of the City Council are elected through popular vote by ward for four-year terms.

The accounting policies of the City are based upon accounting principles generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board (GASB). Effective January 1, 2012, the City adopted the following GASB Statements:

GASB Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements. The objective of this Statement is to improve financial reporting by addressing uses related to service concession and reserve fund (SCAs), which are a type of public-private or public-public partnership. There was no impact on the City's Financial Statements as a result of the implementation of Statement No. 60.

GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. This Statement incorporates into the GASB's authoritative literature certain accounting and financial reporting guidance that is included in the following pronouncements issued on or before November 30,1989, which do not conflict with or contradict GASB pronouncements:

• Financial Accounting Standards Board Statements and Interpretations
• Accounting Principles Board Opinions
• Accounting Research Bulletins of the American Institute of Certified Public Accountants' Committee on Accounting Procedure

The Statement also supersedes Statement No. 20, Accounting and Financial Reporting for Propriety Funds and Other Governmental Entities That Use Proprietary Fund Accounting. Those entities who chose to apply post-November 30, 1989 FASB Statements and Interpretations that do not conflict with or contradict GASB pronouncements can continue to apply those pronouncements as other accounting literature. The financial reporting impact resulting from the implementation of GASB Statement No. 62 was not material.

GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows or Resources, and Net Position. Statement No. 63 standardizes the presentation of deferred outflows of resources and deferred inflows of resources and their effect on a government's net position. It alleviates uncertainty about reporting those financial statement elements by providing guidance where none previously existed. The financial reporting impact resulting from the implementation of GASB Statement No. 63 is primarily the change in terminology from Net Assets to Net Position.

GASB Statement No. 64, Derivative Instruments: Application of Hedge Accounting Termination Provisions -An Amendment to GASB Statement No. 53. Statement No. 64 clarifies whether an effective hedge relationship continues after the replacement of a swap counterparty or a swap counterparty's credit support provider. This statement sets forth criteria that establish when the effective hedging relationship continues and hedge accounting should continue to be applied. There was no impact on the City's Financial Statements as a result of the implementation of Statement No. 64.

Other accounting standards that the City is currently reviewing for applicability and potential impact on the financial statements include:

GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, will be effective for the City beginning with its year ending December 31, 2013. The objective of this statement is to establish accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities.

49

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

GASB Statement No. 66, Technical Corrections -2012- an amendment of GASB Statements No. 10 and No. 62, will be effective for the City beginning with its year ending December 31, 2013. The objective of this statement is to improve accounting and financial reporting for a governmental financial reporting entity by resolving conflicting guidance that resulted from the issuance of two pronouncements, Statements No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, and No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB andAICPA Pronouncements.

GASB Statement No. 68, Accounting and Financial Reporting for Pensions, establishes new financial reporting requirements for most governments that provide their employees with pension benefits through these types of plans. Statement No. 68 will be effective for the City beginning with its year ending December 31, 2015. GASB Statement No. 68 replaces the requirements of GASB Statement No. 27, Accounting for Pensions by State and Local Governmental Employers and GASB Statement No. 50, Pension Disclosures, as they relate to governments that provide pensions through pension plans administered as trusts or similar arrangements that meet certain criteria. GASB Statement No. 68 requires governments providing defined benefit pensions to recognize their long-term obligation for pension benefits as a liability for the first time, and to more comprehensively and comparably measure the annual costs of pension benefits. The Statement also .enhances accountability and transparency through revised and new note disclosures and required supplementary information (RSI).

GASB Statement No. 69, Government Combinations and Disposals of Government Operations, establishes accounting and financial reporting standards related to government combinations and disposals of government operations. Statement No. 69 will be effective for the City beginning with its year ending December 31, 2014. GASB Statement No. 69 requires disclosures to be made about government combinations and disposals of government operations to enable financial statement users to evaluate the nature and financial effects of those transactions.

GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, establishes accounting and financial reporting standards for financial guarantees that are nonexchange transactions (nonexchange financial guarantees) extended or received by a state or local government. Statement No. 70 will be effective for the City beginning with its year ending December 31, 2014. GASB Statement No. 70 requires a government that has issued an obligation guaranteed in a nonexchange transaction to report the obligation until legally released as an obligor. This Statement also requires a government that is required to repay a guarantor for making a payment on a guaranteed obligation or legally assuming the guaranteed obligation to continue to recognize a liability until legally released as an obligor. When a government is released as an obligor, the government should recognize revenue as a result of being relieved of the obligation. This Statement also provides additional guidance for intra-entity nonexchange financial guarantees involving blended component units and requires disclosures to be made about government combinations and disposals of government operations to enable financial statement users to evaluate the nature and financial effects of those transactions.

a) Reporting Entity - The City includes the Chicago Public Library and the City-related funds of the Public Building Commission. The financial statements for the City have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), applicable to governmental units, as required by the Municipal Code of Chicago (Code).

The City's financial statements include the following legal entities as fiduciary trust funds:

The Municipal Employees' Annuity and Benefit Fund of Chicago is governed by a five-member board: three members are elected by plan participants and two are members ex-officio.

The Laborers' and Retirement Board Employees' Annuity and Benefit Fund of Chicago is governed by an eight-member board: two members are elected by plan participants, two are members ex-officio, two members are appointed by the City Department of Human Resources, one member is elected by retired plan participants and one member is elected by the local labor union.

50

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

The Policemen's Annuity and Benefit Fund of Chicago is governed by an eight-member board: four members are elected by plan participants and four are appointed by the Mayor.

The Firemen's Annuity and Benefit Fund of Chicago is governed by an eight-member board: four members are elected by plan participants and four are members ex-officio.

Financial statements for each of the pension plans may be obtained at the respective fund's office.

Related Organizations - City officials are responsible for appointing a voting majority of the members of the boards of other organizations, but the City's accountability for these organizations does not extend beyond making appointments and no fiscal dependency exists between the City and these organizations. Therefore, the Chicago Park District, Chicago Public Schools, Community College District No. 508, Chicago Housing Authority and the Chicago Transit Authority are deemed to be related organizations.

1. Government-wide and fund 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 government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on user fees and charges for services.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identified with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate fund financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

1. Measurement focus, basis of accounting, and financial statement presentation - The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectable within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 90 days of the end of the current fiscal period with the exception of property tax revenue, which is deferred unless taxes are received within 60 days subsequent to year-end. Licenses and permits, charges for services and miscellaneous revenues are not considered to be susceptible to accrual and are recorded as revenues when received in cash. All other revenue items are considered to be measurable and available only when cash is received by the City. Expenditures generally are recorded when a liability is incurred, as under accrual basis of accounting, except for interest and principal on long-term debt, the long-term portion of compensated absences, claims and judgments and pension obligations.

51

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

The City reports the following major governmental funds:

The General Fund is the City's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in in another fund.

Federal, State and Local Grants Fund accounts for the expenditures for programs, which include general government, health, public safety, transportation, aviation, cultural and recreational, and capital outlays. The majority of revenues are provided by several agencies of the Federal government, departments of the Illinois State government and City resources.

Special Taxing Areas Fund accounts for expenditures for special area operations and maintenance and for redevelopment project costs as provided by tax levies on special areas.

Service Concession and Reserve Fund accounts for monies committed for mid and long term uses. The Mid-term portion is subject to appropriation for neighborhood human infrastructure programs, health, and other initiatives. Whereas the Long-term portion is committed for future budgetary and credit rating stabilization. These reserves were created as a result of the Skyway Lease and Parking Meter System transactions. The deferred inflows result from long-term concession and lease transactions whose proceeds are recognized as revenue over the term of the leases.

Bond, Note Redemption and Interest Fund accounts for the expenditures for principal and interest as provided by property tax, utility tax, sales tax, transportation tax, and investment income.

Community Development and Improvement Projects Funds account for proceeds of debt used to acquire property, finance construction, and finance authorized expenditures and supporting services for various activities.

Within the governmental fund types, fund balances are reported in one of the following classifications:

Nonspendable - includes amounts that cannot be spent because they are either: a) not in a spendable form; or b) legally or contractually required to be maintained intact.

Restricted - includes amounts that are restricted to specific purposes, that is, when constraints placed on the use of resources are either: a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or b) imposed by law through constitutional provisions or enabling legislation.

Committed - includes amounts constrained to specific purposes by a government itself, using its highest level of decision-making authority (i.e, City Council); to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest-level action to remove or change the constraint.

Assigned - includes amounts that are constrained by the City's intent to be used for specific purposes, but that are neither restricted nor committed. Residual fund balances in these fund types that are not restricted or committed are reported as assigned.

Unassigned - includes the residual fund balance that has not been restricted, committed, or assigned within the general fund and deficit fund balances of other governmental funds.

The City reports the following major proprietary funds as business-type activities:

Water Fund accounts for the operations of the Chicago Water System (Water). The Water system purifies and provides Lake Michigan water for the City and 125 suburbs. The Water Fund operates two water treatment facilities and 12 pumping stations with a combined pumping capacity of 3,661 million gallons per day.

52

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

Sewer Fund accounts for the operations of the Wastewater Transmission System (Sewer). The Sewer system transports wastewater to the Metropolitan Water Reclamation District of Greater Chicago for processing and disposal. This service is provided for the residents and businesses of the City and certain suburban customers.

Chicago Midway International Airport Fund records operations of Chicago Midway International Airport (Midway) that provides regional travelers with access to airlines that generally specialize in low-cost, point-to-point, origin and destination passenger services. Midway Airport is conveniently located 10 miles from downtown Chicago.

Chicago-O'Hare International Airport Fund records operations of Chicago-O'Hare International Airport (O'Hare), the primary commercial airport for the City. The airlines servicing the airport operate out of four terminal buildings. Three domestic terminal buildings, having a total of 169 gates, serve domestic flights and certain international departures. The International Terminal, having a total of 20 gates and five remote aircraft parking positions, serves the remaining international departures and all international arrivals requiring customs clearance.

Chicago Skyway Fund records operations of the Chicago Skyway (Skyway) which provides vehicle passage across the Calumet River, between the State of Indiana and the State of Illinois (State) through the operation of a tollway which consists of a 7.8-mile span connecting the Dan Ryan Expressway to the Indiana Toll Road. Facilities include a single toll plaza consisting of a central office, maintenance garage and toll collection area. In January 2005, the City entered into a long-term Concession and Lease Agreement of the Skyway, granting a private company the ability to operate and to collect toll revenue during the 99-year term of the agreement. The City received a one-time upfront payment of $1.83 billion.

Additionally, the City reports the following fiduciary funds:

Pension Trust Funds report expenditures for employee pensions as provided by employee and employer contributions and investment earnings.

Agency Funds account for transactions for assets held by the City as agent for certain activities or for various entities. Payroll deductions and special deposits are the primary transactions accounted for in these funds.

As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payment-in-lieu of taxes and other charges between the City's water, sewer, airports and skyway funds. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

Amounts reported as program revenues include: 1) charges to customers or applicants for goods and services, or privileges provided, or fines, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Certain indirect costs have been included as part of the program expenses reported for the various functional activities.

In the fund financial statements, proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the water and sewer funds are charges to customers for sales and services. The airport funds principal operating revenues are derived from landing fees and terminal use charges as well as rents and concessions. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.

53

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

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

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates.

d) Assets, liabilities, deferred inflows, deferred outflows, and net position or equity

1. Cash, Cash Equivalents and Investments generally are held with the City Treasurer as required by the Code. Interest earned on pooled investments is allocated to participating funds based upon their average combined cash and investment balances. Due to contractual agreements or legal restrictions, the cash and investments of certain funds are segregated and earn and receive interest directly. The City uses separate escrow accounts in which certain tax revenues are deposited and held for payment of debt.

The Code permits deposits only to City Council-approved depositories, which must be regularly organized state or national banks and federal and state savings and loan associations, located within the City, whose deposits are federally insured.

Investments authorized by the Code include interest-bearing general obligations of the City, State and U.S. Government; U.S. Treasury bills and other noninterest-bearing general obligations of the U.S. Government purchased in the open market below face value; domestic money market funds regulated and in good standing with the Securities and Exchange Commission and tax anticipation warrants issued by the City. The City is prohibited by ordinance from investing in derivatives, as defined, without City Council approval. The City values its investments at fair value or amortized cost. U.S. Government securities purchased at a price other than par with a maturity of less than one year are reported at amortized cost.

The City's four retirement plans are authorized to invest in bonds, notes, and other obligations of the U.S. Government; corporate debentures and obligations; insured mortgage notes and loans; common and preferred stocks; stock options; real estate; and other investment vehicles as set forth in the Illinois Compiled Statutes. These investments are reported at fair value.

Repurchase agreements can be purchased only from banks and certain other institutions authorized to do business in the State. The City Treasurer requires that securities that are pledged to secure these agreements have a fair value equal to the cost of the repurchase agreements plus accrued interest.

Investments generally may not have a maturity date in excess of ten years from the date of purchase. Certain other investments are held in accordance with the specific provisions of applicable ordinances.

Cash equivalents include certificates of deposit and other investments with maturities of three months or less when purchased.

Deficit cash balances result in interfund borrowings from the aggregate of funds other than escrowed funds. Interest income and expense are generally not recognized on these interfund borrowings.

State statutes and the City's Pension Plans' policies permit lending Pension Plan securities to broker-dealers and other entities with a simultaneous agreement to return the collateral for the same securities in the future. Securities lent at year-end for cash collateral are presented as not categorized in the schedule of custodial credit risk; securities lent for securities collateral are classified according to the category for the collateral.

1. Receivables and Payables activity between funds are representative of services rendered, outstanding at the end of the fiscal year, and are referred to as either "due to/from other funds" (i.e., the current

54

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances."

All trade and property tax receivables are shown net of an allowance for uncollectibles. The allowance is based on historical trends. The estimated value of services provided but unbilled at year-end has been included in receivables.

1. Inventory includes government-wide inventories, which are stated at cost determined principally, using the average cost method. For proprietary funds, the costs of inventories are recorded as expenses when used (consumption method). Governmental fund inventories are accounted for using the purchases method and represent nonspendable resources because they do not represent expendable available financial resources.
2. Assets Held for Resale includes land and buildings of $5.4 million, recorded at lower of cost or market in the Federal, State and Local Grant Funds. These assets are purchased through the use of federal grants and City resources and are intended to be resold.
3. Restricted Assets include certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for their repayment. These assets are classified as restricted or committed in the basic financial statements because they are maintained in separate bank accounts and their use is limited by applicable bond covenants or specific City Council action.

The Water and Sewer funds maintain Rate Stabilization Accounts where any net revenues remaining after providing sufficient funds for all required deposits in the bond accounts may be transferred upon the direction of the City to be used for any lawful purpose of the specific fund.

The O'Hare and Midway funds maintain Passenger Facility Charge accounts as restricted as they are subject to Federal Aviation Administration regulation and approval, to finance specific eligible capital and debt related activities.

1. Capital Assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets, or a network of assets, with an initial cost of more than $5,000 (not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalization value of the assets constructed. The total interest expense (Governmental and Business Activities) incurred by the City during the current fiscal year was $918.9 million, of which $126.4 million was capitalized as part of the capital assets under construction projects in proprietary funds.

55

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

Property, plant, and equipment of the City are depreciated using the straight-line method, in the year subsequent to acquisition or when placed into service, over the following estimated useful lives:

Utility plant      

Utility structures and improvements      

Buildings and improvements      

Airport runways, aprons, tunnels, taxiways, and paved roads

Bridge infrastructure      

Lighting infrastructure      

Street infrastructure      

Transit infrastructure      

Equipment (vehicle, office, and computer)      

25- 100 years 50- 100 years 15 - 40 years 5 - 40 years 10 - 40 years

25 years 10- 25 years 40 years 5-20 years

The City has a collection of artwork and historical treasures presented for public exhibition and education that are being preserved for future generations. The proceeds from sales of any pieces of the collection are used to purchase other acquisitions. A portion of this collection is not capitalized or depreciated as part of capital assets.

1. Deferred Outflows represent the fair value of derivative instruments that are deemed to be effective hedges.
2. Employee Benefits are granted for vacation and sick leave, workers' compensation and health care. Unused vacation leave is accrued and may be partially carried over for one year. Sick leave is accumulated at the rate of one day for each month worked, up to a maximum of 200 days. Severance of employment terminates all rights to receive compensation for any unused sick leave. Sick leave pay is not accrued. Employee benefit claims outstanding, including claims incurred but not reported, are estimated and recorded in the government-wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements.

Employees are eligible to defer a portion of their salaries until future years under the City's deferred compensation plan created in accordance with Internal Revenue Code Section 457. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. Third-party administrators who maintain the investment portfolio administer the Plan. The plan's assets have been placed in trust accounts with the plan administrators for the exclusive benefit of participants and their beneficiaries and are not considered assets of the City.

The City is subject to the State of Illinois Unemployment Compensation Act and has elected the reimbursing employer option for providing unemployment insurance benefits for eligible former employees. Under this option, the City reimburses the State for claims paid by the State. Expenditures for workers' compensation are recorded when paid in the governmental funds. A liability for these amounts is recorded in the government-wide and proprietary fund financial statements.

1. Judgments and claims are included in the government-wide financial statements and proprietary fund types. Uninsured claim expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. In the fund financial statements, expenditures for judgments and claims are recorded on the basis of settlements reached or judgments entered within the current fiscal year. Amounts that related to deferred compensatory time and reserves for questioned costs are treated the same way.
2. Long-term obligations are included in the government-wide financial statements and proprietary fund types in the fund financial statements. Long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type

56

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

statement of net position. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the related debt, except in the case of refunding debt transactions where the amortization period is over the term of the refunding or refunded debt, whichever is shorter.

The City enters into interest rate swap agreements to modify interest rates and/or cash flows on outstanding debt. For existing swaps, the net interest expenditures resulting from these arrangements are recorded as interest expense. The fair value of derivative instruments that are deemed to be effective is accounted for as deferred outflows. Derivative instruments that are deemed not effective are adjusted to fair value with the change in fair value recorded to investment earnings. All interest rate swaps and swaptions are approved by City Council.

In the fund financial statements, governmental funds 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 and discounts given on debt issued are reported as other financing sources or uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures.

Certain debt obligations are to be paid from sales tax, motor fuel or special area taxes.

Long-term purchase obligation represents an agreement with DuPage Water Commission to construct electrical generation facilities not to exceed $15.0 million. The payment of the obligation will be in the form of credits against the charges for water supplied.

1. Deferred inflows represent amounts to be recognized as revenue on a straight line basis over the life of the related long-term lease and concession agreements.
2. Fund equity in the government-wide statements is classified as net position and displayed in three components:

1. Net investement in capital assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or any other borrowings that are attributable to the acquisition, construction, or improvement of those assets.
2. Restricted net position - Consists of net position with constraints placed on the use either by external groups such as creditors, grantors, contributors, or laws.or regulations of other governments, or are legally restricted through constitutional provisions or enabling legislation.

Restricted net position for business activities are provided in Exhibit #7, Statement of Net Position, Proprietary Funds.

1. Unrestricted - All other net position that do not meet the definition of "restricted" or "net investement in capital assets."

2)  Reconciliation of Government-wide and Fund Financial Statements

a)  Explanation of certain differences between the governmental funds balance sheet and the government-wide statement of net position.

i) The governmental funds balance sheet includes a reconciliation between fund balance - total governmental funds and net position - governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that "Other long-term assets are not available to pay for current-period expenditures and therefore are deferred in the funds." The details of this $1,259.1 million are as follows (dollars in thousands):

57

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

Deferred revenue - property tax and grants            $     1,238,382

Other assets - pension excess       57,757

Accounts payable - infrastructure retainage             (36,994)

Net adjustment to increase fund balance - total governmental funds - to arrive at net assets -

governmental activities            $ 1,259,145

ii) Another element of that reconciliation explains that "Certain liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds." The details of this $16,566.7 million are as follows (dollars in thousands):

Long-term liabilities:

Total bonds, notes and certificates payable            $ 9,182,943

Pension and other postemployment benefits            6,364,927

Lease obligation            163,013

Pollution remediation            8,373

Claims and judgments             888,593

Total Long-term liabilities            16,607,849

Bonds, notes and other obligations payable current            (95,479)

Other assets - issuance costs            (74,603)

Accrued interest            4,908

Derivative instruments            31,140

Accrued and other liabilities - compensated absences             92,868

Net adjustment to reduce fund balance - total governmental funds - to arrive at net assets -

governmental activities            $ 16,566,683

b) Explanation of certain differences between the governmental funds statement of revenues, expenditures, and changes in fund balances and the government-wide statement of activities.

i) The governmental funds statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances - total governmental funds and changes in net position - governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that "Governmental funds report capital outlays as expenditures. However, in the statements of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." The details of this $278.6 million are as follows (dollars in thousands):

Capitalized asset expenditures            $ 682,382

Depreciation expense             (403,747)

Net adjustment to increase net changes in fund balances - total governmental funds - to arrive at

changes in net assets - governmental activities            $      278,635

58

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

ii) Another element of that reconciliation states that "Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position." The details of this decrease of $150.8 million are as follows (dollars in thousands):

Proceeds of debt            $ (728,638)

Premium            (36,166)

Payment of refunded bond escrow agent            268,397

Principal retirement            340,754

Payment of cost of issuance            6,035

Interest expense             (1,133)

Net adjustment to reduce net changes in fund balances - total governmental funds - to arrive at

changes in net assets - governmental activities            $ (150,751)

iii) A third element of that reconciliation states that "Certain expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds." The details of this decrease of $1,254.4 million are as follows (dollars in thousands):

Claims and judgments            $ (220,943)

Pension and other post employment benefit liabilities            (1,049,315)

Pollution remediation            2,862

Vacation            12,376

Lease obligations            3,774

Inventory             (3,170)

Net adjustment to reduce net changes in fund balances - total governmental funds - to arrive at

changes in net assets - governmental activities            $ (1,254,416)

3) Stewardship, Compliance and Accountability

a) Annual Appropriation Budgets are established for the General Fund and the Vehicle Tax, Pension, Chicago Public Library and certain Miscellaneous, Special Events, Tourism and Festivals nonmajor Special Revenue Funds, on a non-GAAP budgetary basis:

1. Prior to November 15, the Mayor submits to the City Council a proposed budget of expenditures and the means of financing them for the next year.
2. The budget document is available for public inspection for at least ten days prior to passage of the annual appropriation ordinance by the City Council, which is also required to hold at least one public hearing.
3. Prior to January 1, the budget is legally enacted through passage of the appropriation ordinance.
4. Subsequent to the enactment of the appropriation ordinance, the City Council has the authority to make necessary adjustments to the budget, which results in a change in total or individual appropriations. The legal level of budgetary control is designated in the budget by object grouped by purpose except for the Motor Fuel Tax Fund, which is subsequently re-appropriated by project. A separate Motor Fuel Tax Fund Report demonstrates compliance with annual and project-length budgets required by the State. The separately issued Supplement to the Comprehensive Annual Financial Report provides budgetary information for all other budgeted funds. Copies of this report are available upon request.

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CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

v) All annual appropriations unused and unencumbered lapse at year-end. Encumbered appropriations are carried forward to the following year. Project-length financial plans are adopted for Capital Project Funds. Appropriations for Debt Service Funds are established by bond ordinance.

b) Reconciliation of GAAP Basis to Budgetary Basis - The City's budgetary basis of accounting used for budget vs. actual reporting differs from GAAP. For budgetary purposes, encumbrances are recorded as expenditures but are included in "Unassigned" fund balance for GAAP purposes. For budgetary purposes, proceeds of long-term debt and transfers in are classified as revenues. For budgetary purposes prior years' resources used to cover current year budgetary expenditures are recorded as revenues. For GAAP purposes, proceeds of long-term debt and transfers out are treated as other financing sources. Provision for doubtful account expenditures are not budgeted. A reconciliation of the different basis of revenue and expenditure recognition for the year ended December 31, 2012 is as follows (dollars in thousands):

General

      Fund

Revenues, GAAP Basis            $ 2,920,656

Add:

Proceeds of Debt       55,000

Transfers In       31,617

Prior Year's Surplus Utilized             72,347

Revenues, Budgetary Basis            $ 3,079,620

Expenditures, GAAP Basis            $ 3,081,369

Add:

Transfers Out            26,965

Encumbered in 2012            16,605

Deduct:

Payments on Prior Years' Encumbrances            (39,045)

Provision for Doubtful Accounts and Other             (6,274)

Expenditures, Budgetary Basis            $ 3,079,620

c) Individual Fund Deficits includes the Chicago Skyway Fund, an Enterprise Fund, has a fund deficit of $1,380.4 million which management anticipates will be funded through recognition of deferred inflows. Federal State and Local Grants, a governmental fund, has a deficit of $206.1 million and will be funded by the recognition of deferred grant revenues. Also, the Service Concession and Reserve Fund, a Special Revenue Fund, has a deficit fund balance of $993.5 million which will be funded through the recognition of deferred inflows.

60

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

4)  Restricted and Unrestricted Cash, Cash Equivalents and Investments

a) Investments As of December 31, 2012, the City had the following Investments (dollars in thousands):

Investment Type      Investment Maturities (in Years)

More Than

Less Than 1           1-5                6-10      10      Total

      City Funds      

U.S. Treasuries                                     $           -       $           -       $         2,490      $     42,232    $      44,722

U.S. Agencies*                                            345,580         2,621,259            857,328      145,684      3,969,851

Commercial Paper                                        284,644                 -                     -      -      284,644

Corporate Bonds                                           44,151            232,284              39,904      104,812      421,151

Corporate Equities                                           881                 26                 -      -      907

Municipal Bonds                                            24,465           245,260            183,334      20,715      473,774

Supra national Bonds                                    10,024                -                    -      -      10,024

Certificates of Deposit and

Other Short-term                                   1,464,492      4,590      -      -      1,469,082

Total City Funds            $   2,174,237    $   3,103,419    $    1,083,056    $    313,443    $ 6,674,155

*U.S. Agencies include investments in government-sponsored enterprises such as Federal National Mortgage Association, Federal Home Loan Banks, and Federal Home Loan Mortgage Corp.

Pension Trust Funds

U.S. and Foreign

Government Agencies            $     280,778    $      351,620    $      172,501     $    441,450    $ 1,246,349

Corporate Bonds            916,831      477,231      360,518      263,354      2,017,934

Corporate Equities            5,835,602      -                     -                  -      5,835,602

Pooled Funds            73,104      25,950                  -                  -      99,054

Real Estate            615,379      -                     -                  -      615,379

Securities Received from

Securities Lending            1,126,065      -                     -                  -      1,126,065

Venture Capital            455,757      -                    -                 -      455,757

Certificates of Deposit and

Other Short-term            125,245      -                     -                  -      125,245

Other            39,610      39,610

Total Pension Trust Funds            $   9,468,371    $     854,801    $      533,019    $    704,804    $ 11,560,995

Total            $ 11,642,608    $   3,958,220    $    1,616,075    S 1,018,247    $ 18,235,150

1. Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy limits all securities so purchased, except tax anticipation warrants, municipal bonds, notes, commercial paper or other instruments representing a debt obligation of the City, shall show on their face that they are fully payable as to principal and interest, where applicable, if any, within ten years from the date of purchase.
2. Credit Risk - The Code limits investments in commercial paper to banks whose senior obligations are rated in the top two rating categories by at least two national rating agencies and who are required to maintain such rating during the term of such investment. The Code also limits investments to domestic money market mutual funds regulated by, and in good standing with, the Securities and Exchange Commission. Certificates of Deposit are also limited by the Code to national banks which provide collateral of at least 105 percent by marketable U.S. government securities marked to market at least

61

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

monthly; or secured by a corporate surety bond issued by an insurance company licensed to do business in Illinois and having a claims-paying rating in the top rating category, as rated by a nationally recognized statistical rating organization maintaining such rating during the term of such investment. The following schedule summarizes the City's and Pension Trust Funds exposure to credit risk (in thousands):

Quality Rating City

Aaa/AAA            $ 163,532

Aa/AA       4,230,548

A/A       259,846

Baa/BBB       10,007

Ba/BB      

B/B      

Caa/CCC       30,666

Ca      

C/CC      

D/D      

P1/A1       445,518

Not Rated*       1,534,038

Total Funds            $ 6,674,155

Quality Rating      Pension Trust Funds

Aaa/AAA                             $      134,000

Aa/AA            173,641

A/A            300,095

Baa/BBB            308,998

Ba/BB            127,983

B/B            149,359

Caa/CCC            29,880

Ca            1,573

C/CC            999

D/D            3,471

Not Rated            313,968

$

Other            867,806

2,411,773

Hi)

iv)

* Not rated is primarily composed of money market mutual funds

Custodial Credit Risk - Cash and Certificates of Deposit This is the risk that in the event of a bank failure, the City's deposits may not be returned. The City's Investment Policy states that in order to protect the City's deposits, depository institutions are to maintain collateral pledges on City deposits during the term of the deposit of at least 102 percent of marketable U.S. government, or approved securities or surety bonds, issued by top-rated insurers. Collateral is required as security whenever deposits exceed the insured limits of the FDIC. The bank balance of cash and certificates of deposit with the City's various municipal depositories was $532.3 million. 100 percent of the bank balance was either insured or collateralized with securities held by City agents in the City's name.

Custodial Credit Risk - Investments For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in possession of an outside party. The City has no custodial credit risk exposure because investment securities are insured, registered and held by the City.

62

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

v) Foreign Currency Risk - In the case of the Pension Trust Funds, is the risk that changes in exchange rates will adversely affect the fair value of an investment or a deposit. The risk of loss is managed by limiting its exposure to fair value loss by requiring their international securities managers to maintain diversified portfolios. The following schedule summarizes the Pension Trust Funds exposure to foreign currency risk (in thousands):

      Foreign Currency Risk      

Australian dollar                                        $      89,116

Brazilian real            41,595

British pound            353,039

Canadian dollar            103,772

Chilean peso            5,333

Chinese yuan            (605)

Columbian peso            5,120

Czech Republic koruna            1,421

Danish krone            25,158

Egyptian pound            420

European euro            452,912

Hong Kong dollar            172,221

Hungarian forint            472

Indian rupee            32,856

Indonesian rupiah            19,054

Japanese yen            307,725

Malaysian ringgit            13,056

Mexican peso            25,976

Moroccan dirham            143

New Israeli shekel            8,696

New Taiwan dollar            23,085

New Zealand dollar            3,218

Nigeria Naira            1,555

Norwegian krone            21,313

Pakistan rupee            269

Peruvian Nuevo Sol            1

Philippines peso            3,503

Polish zloty            3,604

Qatari riyal            2,259

Singapore dollar            31,025

South African rand            37,723

South Korean won            51,593

Swedish krona            44,158

Swiss franc            106,680

Taiwan dollar            3,774

Thailand baht            21,703

Turkish lira            12,230

United Arab Emirates dirham            1,039

Total Pension Trust Funds            $ 2,026\2T2

63

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CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

vi) The following schedule summarizes the cash and investments reported in the basic financial statements(dollars in thousands):

Per Note 4:

Investments - City                                                          $      6,674,155

Investments - Pension Trust Funds            11,560,995

$      18,235,150

Per Financial Statements:

Restricted Investments            $ 2,840,691

Unrestricted Investments            1,797,020

Investments with Fiduciary Funds            10,344,175

Investments with Escrow Agent            509,800

Invested Securities Lending Collateral            1,126,065

Investments Included as Cash and Cash

Equivalents on the Statements of Net Position             1,617,399

$ 18,235,150

5) Property Tax

The City's property tax becomes lien on real property on January 1 of the year it is levied. The Cook County Assessor (Assessor) is responsible for the assessment of all taxable real property within Cook County (County), * except for certain railroad property assessed directly by the State. The County Board has established a triennial cycle of reassessment in which one-third of the County will be reassessed each year on a repeating schedule established by the Assessor.

Property in the County is separated into nine classifications for assessment purposes. After the Assessor establishes the fair market value of a parcel of land, that value is multiplied by one of the classification percentages to arrive at the assessed valuation (Assessed Valuation) for that parcel. These percentages range from 16.0 percent for certain residential, commercial, and industrial property to 38.0 percent for other commercial and industrial property.

The Illinois Department of Revenue has the statutory responsibility of ensuring uniformity of real property assessments throughout the State. Each year, the Department of Revenue furnishes the county clerks with an adjustment factor to equalize the level of assessment among counties. This factor (Equalization Factor) is then applied to the Assessed Valuation to compute the valuation of property to which a tax rate will be applied (Equalized Assessed Valuation). The County Clerk adds the Equalized Assessed Valuation of all real property in the County to the valuation of property assessed directly by the State (to which the Equalization Factor is not applied) to arrive at the base amount (Assessment Base) used in calculating the annual tax rates.

The County Clerk computes the annual tax rate by dividing the levy by the Assessment Base and then computes the rate for each parcel of real property by aggregating the tax rates of all governmental units having jurisdiction over that particular parcel. The County Treasurer then issues the tax bills. Property taxes are deposited with the County Treasurer, who remits to the City its respective share of the collections. Taxes levied in one year become due and payable in two installments during the following year on March 1 and August 1 or 30 days from mailing of tax bills if later than July 1. The first installment is estimated and is 55.0 percent of the prior year's tax bill. The second installment is based on the current levy, assessment and equalization and also reflects any changes from the prior year.

The City Council has adopted an ordinance beginning in 1994, limiting the City's aggregate property tax levy to an amount equal to the prior year's aggregate property tax levy plus the lesser of (a) five percent or (b) the percentage increase in the annualized Consumer Price Index, all as defined in the ordinance. The ordinance provides a safe harbor for that portion of any property tax debt service levy equal to the aggregate interest and principal payments on

64

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

the City's general obligation bonds and notes during the 12-month period ended January 1, 1994, subject to annual increase in the manner described above for the aggregate levy, all as provided by the ordinance. Increases in the debt service portion of each levy may, however, reduce amounts available within such levy to finance operations.

6) Interfund Balances and Transfers

a) The following balances at December 31, 2012 represent due from/to balances among all funds (dollars in thousands):

      Fund Type/Fund            Due From       Due To

Governmental Funds:

General            $        165,078     $ 139,397

Federal, State and Local Grants            29,694 281,434

Special Taxing Areas            258,238                11,534

Service Concession and Reserve      

Bond, Note Redemption and Interest            30,068

Community Development and Improvement Projects..      67,799 97,857

Nonmajor Governmental Funds             93,854 205,273

Total Governmental Funds                                                 644,731      735,495

Enterprise Funds:

Water                                                                               20,607      11,196

Sewer                                                                               18,840      12,113

Chicago Midway International Airport                                           14,437      20,142

Chicago-O'Hare International Airport                                         28,482      3,710

Chicago Skyway                  -       15

Total Enterprise Funds                                                         82,366      47,176

Fiduciary activities:

Pension Trust                  55,574

Total Fiduciary activities             55,574

Total            $        782,671      $ 782,671

The balances resulted from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system and (3) payments between funds are made.

65

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

b) The following balances at December 31, 2012 represent interfund transfers      among all funds (dollars in

thousands):

      Fund Type/Fund            Transfer In      Transfer Out

Governmental Funds:

General            $         31,617      $ 26,965

Federal, State and Local Grants      

Special Taxing Areas            68,675      44,264

Service Concession and Reserve            328      12,358

Reserve      

Bond, Note Redemption and Interest            -      10,105

Community Development and Improvement Projects..      3,843      2,322

Nonmajor Governmental Funds                  74,287       82,736

Total Governmental Funds            $        178,750      $ 178,750

Transfers are used to move revenues from the fund that the statute or budget requires to collect them to the fund that statute or budget requires to expend them and to move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due.

66

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

7) Capital Assets

Disposals

and Transfers

Balance January 1, 2012

a) Capital Assets activity for the year ended December 31, 2012 was as follows (dollars in thousands):

Balance December 31, 2012

Additions

Governmental activities:

1,400,977 13,132 466,267

$ 1,404,501 13,183 644,325

3,524 51

614,211 617,786

Capital assets, not being depreciated:

Land       $

(436,153) _ (436,153) 2,062,009

Works of Art and Historical Collections      

1,880,376

Construction in Progress             

Total capital assets, not being depreciated             

2,446,349 1,339,484 6,965,900

43,497 54,347 413,971

2,489,846 1,365,645 7,379,871

Capital assets, being depreciated:

(28,186)

Buildings and Other Improvements      

Machinery and Equipment      

(28,186) 11,235,362

10,751,733

511,815

Infrastructure             

Total capital assets, being depreciated      

747,256 1,025,874 3,279,011

64,955 112,317 226,475

812,211 1,110,005 3,505,486 5,427,702

5,807,660

Less accumulated depreciation for:

(28,186)

Buildings and Other Improvements      

Machinery and Equipment      

5,052,141

403,747

(28,186)

Infrastructure             

5,699,592

108,068

Total accumulated depreciation             

7,579,968    $     725,854    $    (436,153)   $ 7,869,669

Total capital assets, being depreciated, net             

Total governmental activities       _$_

Business-type activities:

1,012,637 1,310,364

12,043 739,488

1,024,680 1,548,291 2,572,971

Capital assets, not being depreciated:

(501,561)

Land       $

(501,561)

2,323,001

751,531

Construction in Progress             

Total capital assets, not being depreciated             

13,069,921 651,105

751,994 8,654

(20,564) (5,959) (26,523)

13,801,351 653,800 14,455,151

Capital assets, being depreciated:

Buildings and Other Improvements      

760,648

13,721,026

3,928,965 313,807 4,242,772

9,478,254

Machinery and Equipment             

Total capital assets, being depreciated      

250,195 20,459

3,943 (4,765) (822)

(25,701)

4,183,103 329,501 4,512,604

9,942,547

Less accumulated depreciation for:

Buildings and Other Improvements      

270,654

Machinery and Equipment             

489,994

Total accumulated depreciation             

11,801,255    $ 1,241,525

(527,262)   $ 12,515,518

Total capital assets, being depreciated, net             

19,381,223    $ 1,967,379

(963,415)   $ 20,385,187

Total business-type activities       $

Total Capital Assets       $

67

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

b) Depreciation expense was charged to functions/programs of the City as follows (dollars in thousands):

Governmental activities:

General Government            $ 86,528

Public Safety            21,776

Streets and Sanitation            13,981

Transportation            235,258

Health            1,694

Cultural and Recreational             44,510

Total Depreciation Expense - Governmental Activities              $      403,747

Business-type Activities:

Water            $ 48,275

Sewer            26,600

Chicago Midway International Airport            45,011

Chicago-O'Hare International Airport            140,258

Chicago Skyway             10,510

Total Depreciation Expense - Business-type Activities            _$_      270,654

8) Leases

a) Operating Leases

The City leases building and office facilities under noncancelable operating leases. Total costs for such leases were approximately $18.4 million for the year ended December 31, 2012.

The future minimum lease payments for these leases are as follows (dollars in thousands):

1.                                                         $      18,093
2.       12,231
3.       7,322
4.       2,950
5.       2,288

2018-2022            9,141

2023-2027            1,959

2028-2032            312

2033-2037            216

2038-2042            152

Total Future Rental Expense            $      54,664

b) Capital Leases

During 2003, the City entered into lease and lease back agreements with third parties pertaining to 911 Center Qualified Technological Equipment (QTE), with a book value of $143.3 million at December 31, 2003. Under the QTE lease agreement, which provides certain cash and tax benefits to the third party, the City entered into a long-term lease for applicable assets back to the City under a sublease. Under the sublease, the City is required to make future minimum lease payments.

68

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

During 2005, the City entered into sale and lease back agreements with third parties pertaining to the City owned portion of a rapid transit line with a book value of $430.8 million at December 31, 2005. Under the lease agreement, which provides certain cash and tax benefits to the third party, the City entered into a long-term lease for applicable assets back to the City under a sublease. Under the sublease, the City is required to make future minimum lease payments.

The future minimum payments for these leases are as follows (dollars in thousands):

Year Ending       Total

December 31,

1.       $ 104
2.       9,000
3.       9,000
4.       9,000
5.       9,000

2018-2022            35,631

2023 - 2027            76,370

2028 - 2032             167,164

Total Minimum Future Lease Payments       315,269

Less Interest             152,256

Present Value of Minimum

Future Lease Payments            $      163,013

c)  Lease Receivables

Most of the O'Hare land, buildings and terminal space are leased under operating lease agreements to airlines and other tenants. The following is a schedule of the minimum future rental income on noncancelable operating leases as of December 31, 2012 (dollars in thousands):

1. 1.       $ 84,203
2.       83,796
3.       66,513
4.       66,510
5.       66,789

2018-2022            133,707

2023 - 2027            8,867

2028 - 2032            9,656

2033 - 2036             5,738

Total Minimum Future Rental Income            $      525,779

Contingent rentals that may be received under certain leases based on the tenants' revenues or fuel flow are not included in minimum future rental income. Rental income for O'Hare, consisting of all rental and concession revenues except ramp rentals and automobile parking, amounted to $365.8 million, including contingent rentals of $86.0 million.

69

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

Most of the Midway land and terminal space is leased under operating lease agreements to airlines and other tenants. The following is a schedule of the minimum future rental income on noncancelable operating leases as of December 31, 2012 (dollars in thousands):

1.       $ 30,900
2.       29,803
3.       27,282
4.       26,529
5.       26,529

Total Minimum Future Rental Income            $      141,043

Contingent rentals that may be received under certain leases based on tenants' revenues are not included in minimum future rental income. Rental income for Midway, consisting of all rental and concession revenues except aircraft parking fees and certain departure fees (turns) and automobile parking, amounted to $101.0 million, including contingent rentals of $40.4 million.

9)  Short-term Debt

Matured bonds represent principal due on coupon bonds in which the coupons have not been presented for payment. For the year ended December 31, 2012, there was minor activity; the balance remained at $0.7 million.

i

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

8,011,830 112,151 770,312

8,894,293

170,180 175,820 283,010 9,182,943

10) Long-term Obligations

Balance January 1, 2012

a) Long-term Debt activity for the year ended December 31, 2012 was as follows (in thousands):

Additions

Balance December 31, 2012

Reductions

Governmental activities:

$   728,638 $

7,777,667 131,561 776,027

8,685,255

166,065 196,637 264,402 8,980,229

494,475 19,410 5,715 519,600

15,816 56,983 14,540 575,307

Bonds, notes and commercial paper payable:

General obligation debt and commercial paper

Tax increment      

728,638

19,931 36,166 33,148 778,021

Revenue       

Less unamortized debt refunding transactions .

Add unamortized premium      

Add accretion of capital appreciation bonds      

Total bonds, notes and certificates payable      

Amounts Due within One Year

97,228 23,200 17,150 137,578

22,042 159,620

Other liabilities:

Pension and other postemployment

benefits obligations      

Lease obligations      

Pollution Remediation      

Claims and judgments      

Total other liabilities      

5,386,668 166,787 11,235 667,650

6,232,340

1,017,243 8,957

363,348 1,389,548

38,984 12,731 2,862 142,405 196,982

6,364,927 163,013 8,373 888,593

7,424,906

9,104

111,996 121,100

16,607,849     $ 280,720

Total governmental activities            $ 15,212,569     $ 2,167,569     $ 772,289

Business-type activities:

Revenue bonds and notes payable:

Water      

Sewer      

Chicago-O'Hare International Airport. Chicago Midway International Airport.

Less unamortized debt refunding transactions .

Add unamortized premium      

Add accretion of capital appreciation bonds ... .

1,721,187 1,112,022 7,420,349 1,461,490 11,715,048

110,535 141,020 84,188

399,950 280,249

1,211,687 34,639

1,926,525

29,597 58,550 9,114

90,960 28,497

1,499,475 54,800

1,673,732

17,080 (109,714) 4,493

2,030,177 1,363,774 7,132,561 1,441,329

11,967,841

123,052 309,284 88,809

42,232 29,690 111,085 23,475

206,482

8,750

Total business-type activities            $ 11,829,721     $ 1,964,592     $ 1,551,431     $     12,242,882     $ 215,232

Total long-term obligations            $ 27,042,290     $ 4,132,161     $ 2,323,720     $    28,850,731     $ 495,952

The Pension obligation liability will be liquidated through a Special Revenue Fund (Pension Fund) as provided by tax levy and State Personal Property Replacement Tax revenues.

71

i

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

b) Issuance of New Debt

1. Commercial Paper Notes

During 2012, the City issued $133.8 million in commercial paper notes for certain capital and operating uses. The City has excluded commercial paper from current liabilities, as it intends and has the ability to refinance the obligation on a long-term basis.

1. General Obligation Bonds

General Obligation Bonds, Project Series 2012A ($179.9 million), Taxable Project and Refunding Series 2012B ($308.0 million),and Refunding Series 2012C ($107.0 million) were sold at a premium in May 2012. The bonds have interest rates ranging from 4.0 percent to 5.432 percent and maturity dates from January 1, 2020 to January 1, 2042. Net proceeds of $627.1 million will be used to finance infrastructure improvements; transportation improvements; grants or loans to assist not-for-profit organizations or educational or cultural institutions; or to assist other municipal corporations or units of local government, or school districts; cash flow needs of the City; acquisition of personal property; acquisition, demolition, remediation or improvement of real property for industrial, commercial or residential purposes; constructing, equipping, altering and repairing various municipal facilities including fire stations, police stations, libraries, senior and health centers and other municipal facilities; enhancement of economic development within the City by making grants or deposits to secure obligations of not-for-profit or for-profit organizations doing or seeking to do business in the City; litigation judgments or settlements agreements involving the City, including escrow accounts or other reserves needed for such purposes; payments of certain pension contributions; providing for facilities, services and equipment to protect and enhance public safety, and other uses permitted by the Ordinance ($292.4 million), to refund certain maturities of bonds outstanding ($268.2 million), and to fund capitalized interest ($66.5 million). The current refunding of the bonds increased the City's total debt service payments by $242.7 million, resulted in a net economic gain of approximately $.8 million and a book loss of approximately $19.9 million.

In February 2012, the City entered into a swap overlay agreement (i.e., basis trade) associated with the General Obligation Series 2005D variable rate bonds with PNC Bank, N.A. for a notional amount of $207.9 million. The agreement is effective January 1, 2031 through January 1, 2040, and the City will pay SIFMA and receive 72.5 percent of one month LIBOR. The City received an upfront payment of $4.0 million.

In February 2012, the City entered into a swap overlay agreement (i.e., Constant Maturity Swap (CMS) reversal) associated with the General Obligation Series 2003B variable rate bonds with PNC Bank, N.A. for a notional amount of $144.6 million. The agreement is effective March 1, 2014 through November 1, 2014 and the City will pay 66.91 percent of 10 year LIBOR and receive 75 percent of one month LIBOR. Together with the existing underlying swaps on the bonds, in which the City pays 4.052 percent and receives 66.91 percent of 10 year LIBOR, the net effect is that the City will pay a fixed rate of 4.052 percent and receive 75 percent of one month LIBOR through November 1, 2014, after which time the City will receive 66.91 percent of 10 year LIBOR through expiration (January 1, 2034). The City received an upfront payment of $1.3 million.

1. Enterprise Fund Revenue Bonds and Notes

Chicago O'Hare International Airport Senior Lien Revenue Bonds, Series 2012A-C ($728.9 million) were sold at a premium in August 2012. The bonds have interest rates ranging from 1.0 percent to 5.0 percent and maturity dates from January 1, 2013 to January 1, 2032. Net proceeds of $796.3 million and other monies $155.3 million will be used to refund certain General Airport Revenue Bonds maturities of bonds outstanding ($837.2 million), to fund debt service reserves ($114.2 million), and to fund capitalized interest ($.2 million). The current refunding of the bonds decreased the City's total debt service payments by $156.2 million, resulted in a net economic gain of approximately $118.2 million and a book loss of approximately $19.7 million.

72

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

Chicago O'Hare International Airport Passenger Facility Charge Revenue Refunding Bonds, Series 2012 ($452.1 million) were sold at a premium in September 2012. The bonds have interest rates ranging from 2.5 percent to 5.0 percent and maturity dates from January 1, 2014 to January 1, 2032. Net proceeds of $493.7 million and other monies $55.9 million will be used to refund certain PFC maturities of bonds outstanding ($511.1 million) and to fund debt service reserves ($38.5 million). The current refunding of the bonds decreased the City's total debt service payments by $100.3 million, resulted in a net economic gain of approximately $73.5 million and a book loss of approximately $9.0 million.

Second Lien Water Revenue Project Bonds, Series 2012 ($399.4 million) were sold at a premium in May 2012. The bonds have interest rates ranging from 4.0 percent to 5.0 percent and maturity dates from November 1, 2016 to November 1, 2042. Net proceeds of $444.4 million will be used to finance certain costs of improvements and extensions to the water system ($400.0 million), to retire water commercial paper notes outstanding ($35.9 million), and fund certain capitalized interest ($8.5 million).

In 2012, the Water Fund drew $0.5 million from the Illinois Environment Protection Agency loan agreement. The loan has no interest and has principal maturity dates from June 2, 2012 to December 2, 2031.

Second Lien Wastewater Revenue Project, Series 2012 ($276.5 million) were sold at a premium in September, 2012. The bonds have interest rates ranging from 3.0 percent to 5.0 percent and maturity dates from January 1, 2014 to January 1, 2042. Net proceeds of $303.8 million will be used to finance certain costs of improvements and extensions to the wastewater system ($300.0 million), and fund certain capitalized interest ($3.8 million).

In 2012, the Sewer Fund drew $3.7 million from the Illinois Environment Protection Agency loan agreement. The loan has an interest rate of 2.5% with maturity dates from June 21, 2013 to June 21, 2031.

In 2012, $30.6 million of Chicago O'Hare International Airport Commercial Paper Notes Series 2005 were issued. The proceeds were used to finance portions of the costs of authorized airport projects.

In 2012, $34.6 million of Chicago Midway International Airport Commercial Paper Notes Series A, B, C & D were issued. The proceeds were used to finance portions of the costs of authorized airport projects.

c) Annual requirements listed below for each year include amounts payable January 1 of the following year. Bonds maturing and interest payable January 1, 2013 have been excluded because funds for their payment have been provided for. Annual requirements to amortize debt outstanding as of December 31, 2012 are as follows (dollars in thousands):

General Obligation       Tax Increment

Year Ending           Principal      Interest      Principal Interest

December 31,

1.       $   112,132    $     408,456      $   26,114    $ 5,931
2.       214,375          409,006      14,602 11,819
3.       236,206          403,012      8,965 3,951
4.       251,617           392,344      11,160 3,400
5.       274,802           380,870      11,685 2,666

2018-2022            1,534,410        1,711,157      33,715 4,737

2023-2027            1,475,610 1,371,842

2028-2032            1,568,684 1,023,299

2033-2037            1,186,826 577,348

2038-2041            918,641      163,143       -

$ 7,773,303    $   6,840,477     $ 106,241     $ 32,504

73

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

      Revenue      Business-type Activities

Year Ending      Principal      Interest      Principal      Interest

December 31,

1.       $   18,040      $   36,140    $    263,342    $ 582,754
2.       18,980      35,200         378,095 571,111
3.       18,400      34,228         381,052 553,539
4.       18,135      33,289         370,679 536,765
5.       18,525      32,355          423,016 519,332

2018-2022            107,075      147,318       1,951,670 2,312,220

2023-2027            132,903      121,499       2,181,607 1,845,583

2028-2032            119,841      135,032       2,708,989 1,204,226

2033-2037            191,334      71,914       2,194,130 582,979

2038-2041            109,930      11,172      866,590      100,285

$ 753,163    $ 658,147    $11,719,170    $ 8,808,794

Debt service requirements above exclude commercial paper issues as the timing of payments is not certain. For the requirements calculated above, interest on variable rate debt was calculated at the rate in effect or the effective rate of a related swap agreement, if applicable, as of December 31, 2012. Standby bond purchase agreements or letters of credit were issued by third party financial institutions that are expected to be financially capable of honoring their agreements.

The City's variable rate bonds may bear interest from time to time at a flexible rate, a daily rate, a weekly rate, an adjustable long rate, or the fixed rate as determined by the remarketing agent, in consultation with the City. An irrevocable letter of credit provides for the timely payment of principal and interest. In the event the bonds are put back to the bank and not successfully remarketed, or if the letter of credit agreements expire without an extension or substitution, the bank bonds will convert to a term loan. There is no principal due on the potential term loans within the next fiscal year.

d) Derivatives

i)   Pay-Fixed, Receive-Variable Interest Rate Swaps

(1) Objective of the swaps. In order to protect against the potential of rising interest rates and/or changes in cash flows, the City has entered into various separate pay-fixed, receive-variable interest rate swaps at a cost less than what the City would have paid to issue fixed-rate debt. The notional amounts related to bonds maturing on January 1, 2013 have been excluded below because funds for their payment have been provided for.

74

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

Amount

Changes in Fair Value Classification Amount

Fair Value at December 31, 2012

Classification

Notional Amount

7,777

3,167

Governmental Activities

Hedges:

Pay-fixed Interest Rate SWAPS Investment Derivative Instruments: Pay-fixed Interest Rate SWAPS

Deferred Outflow of Resources $

Investment Income

Deferred Outflow of

Resources       $ (260,496)    $ 781,630

(36,313)

199,040

Investment Revenue

1,979

(253,120) 957,030

Business-type Activities

Hedges:

Pay-fixed Interest Rate SWAPS

Deferred Outflow of Resources

Deferred Outflow of Resources

Total

$ (549,929)

(2) Terms, fair values, and credit risk. The objective and terms, including the fair values and credit ratings, of the City's hedging derivative instruments outstanding as of December 31, 2012, are as follows. The notional amounts of the swaps match the principal amounts of the associated debt. The City's swap agreements contain scheduled reductions to outstanding notional amounts that are expected to approximately follow scheduled or anticipated reductions in the associated "bonds payable" category. The notional amounts related to bonds maturing on January 1, 2013 have been excluded below because funds for their payment have been provided for. Under the swaps, the City pays the counterparty a fixed payment and receives a variable payment computed according to the London Interbank Offered Rate (LIBOR) and/or The Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Index. The terms, including fair values of the swaptions as of December 31, 2012, are as follows (dollars in thousands):

75

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

Counter-Termi- party

Associated      Notional   Effective      Fair      nation Credit

      Bond Issue      Amounts     Date      Terms      Values      Date Rating

Hedging Instruments Governmental Activities:

A2/A+

11/8/2007 Pay 3.998%; receive SIFMA      $    (60,127)    1/1/2042 BaaVA-

GOVRDB (Series 2007EFG)            $   200,000     1/1/2014 Pay SIFMA; receive 72.5% of 1 Mo. LIBOR '       (19,839)    1/1/2042 Aa3/AA-

A3/A-

8/17/2005 Pay 4.104%; receive SIFMA      (69,632)    1/1/2040 A2/A+

Aa1/AA-A2/A+

1/1/2014 Pay SIFMA; receive 72.5% of 1 Mo. LIBOR *      (14,089)    1/1/2031 A2/A+

GO VRDB (Series 2005D)            222,790     1/1/2030 Pay SIFMA; receive 72.5% of 1 Mo. LIBOR *        (5,918)    1/1/2040 A2/A

GO VRDB (Neighborhoods Alive 21 Aa3/A+

Program, Series 2002B)            206,700    10/3/2002 Pay 3.575%; receive 70% of 1 Mo. LIBOR      (51,858)      1/1/2037 A3/A

Sales Tax Revenue Refunding Bonds

(VRDB Series 2002)            113,240    6/27/2002  Pay 4.23%; receive 75.25% of 3 Mo. LIBOR        (32,559)      1/1/2034 Aa3/A+

Tax Increment Allocation Bonds

(Near North TIF, Series 1999A)            38,900     9/1/1999 Pay 5.084%; receive 67% of I Mo. LIBOR      (6,474)      1/1/2019 A3/A

Business-type Activities:

Chicago Midway International Airport                     12/14/2004 Pay 4.174%; receive SIFMA Plus .05%      (21,552)  1/1/2035 A3/A-

Revenue Bonds (Series 2004C&D)            148,500    4/21/2011  Pay 4.247%; receive SIFMA Plus .05%      (15,242)  1/1/2035 Aa3/AA-

Pay 3.886%; receive 95% of 3 Mo. LIBOR (if LIBOR is < 3%) or

232,560     1/3/2011  67% of 3 Mo. LIBOR (if LIBOR is > 3%)      (62,760)    1/1/2039 A2/A+

Pay 3.886%; receive SIFMA

Wastewater Transmission Variable (if LIBOR is < 3%) Aa3/A+

Rate Revenue Bonds (Series 2008C)            99.670    7/29/2004 or 67% of 1 Mo. LIBOR (if LIBOR is > 3%)      (27.195)    1/1/2039 A3/A

Water Variable Rate Revenue

Refunding Bonds (Series 2004)            185,780    4/16/2008  Pay 3.8694%; receive SIFMA      (42,949)   11/1/2025 A2/A

Water Variable Rate Revenue

Refunding Bonds (Series 2004)            190,520     8/5/2004 Pay 3.8669%; receive SIFMA      (49,862)   11/1/2031 Aa3/AA-

Second Lien Water Revenue

Refunding Bonds (Series 2000)            100,000    4/16/2008 Pay 3.8694%; receive SIFMA      (33,560)   11/1/2030 A2/A

Investment Instruments

Governmental Activities:

8/7/2003 Pay 4.052%; receive 66.91% of 10 Yr LIBOR      (32,986)    1/1/2034 Aa3/AA-

Pay 66.91% of 10 Yr LIBOR;      Aa3/A+

3/1/2011  receive 75% of 1 Mo. LIBOR *      (2,070)    3/1/2014 Aa1/AA-

GO VRDB (Series 2003B)                           199,040     3/1/2014 receive 75% of 1 Mo. LIBOR *      (1,257)   11/1/2014 A2/A

Total            $ 1.937.700      $ (549.929)

See Table 31 in Statistical Section for Counterparty Entities and additional details for credit ratings. Type and objective for all the SWAPS is the same, as mentioned earlier. * Reflects SWAP Overlay agreement VRDB means variable rate demand bonds.

76

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

1. Fair Value. As of December 31, 2012, the swaps had a negative fair value of $549.9 million. As per industry convention, the fair values of the City's outstanding swaps were estimated using the zero-coupon method. This method calculates the future net settlement payments required by the swap, assuming that the forward rates implied by the yield curve correctly anticipate future spot rates. These payments are then discounted using the spot rates implied by the current yield curve for hypothetical zero-coupon bonds due on the date of each future net settlement on the swap. Because interest rates are below the Fixed Rate Paid, the City's swaps had negative values. Note that the combination of the negative fair value of $549.9 million and the unamortized interest rate swap premium balance of $5.1 million related to investment derivative instruments and $36.3 million related to governmental cash flow hedges represent the total fair value of the derivative liability in the statement of net position.
2. Credit Risk. The City is exposed to credit risk (counterparty risk) through the counterparties with which it enters into agreements. If minimum credit rating requirements are not maintained, the counterparty is required to post collateral to a third party. This protects the City by mitigating the credit risk, and therefore the ability to pay a termination payment, inherent in a swap. Collateral on all swaps is to be in the form of cash or Eligible Collateral held by a third-party custodian. Upon credit events, the swaps also allow transfers, credit support, and termination if the counterparty is unable to meet the said credit requirements.
3. Basis Risk. Basis risk refers to the mismatch between the variable rate payments received on a swap contract and the interest payment actually owed on the bonds. The two significant components driving this risk are credit and SIFMA/LIBOR ratios. Credit may create basis risk because the City's bonds may trade differently than the swap index as a result of a credit change in the City. SIFMA/LIBOR ratios (or spreads) may create basis risk. With percentage of LIBOR swaps, if the City's bonds trade at a higher percentage of LIBOR over the index received on the swap, basis risk is created. This can occur due to many factors including, without limitation, changes in marginal tax rates, tax-exempt status of bonds, and supply and demand for variable rate bonds. The City is exposed to basis risk on all swaps except those that are based on Cost of Funds, which provide cash flows that mirror those of the underlying bonds. For all other swaps, if the rate paid on the bonds is higher than the rate received, the City is liable for the difference. The difference would need to be available on the debt service payment date and it would add additional underlying cost to the transaction.
4. Tax Risk. The swap exposes the City to tax risk or a permanent mismatch (shortfall) between the floating rate received on the swap and the variable rate paid on the underlying variable-rate bonds due to tax law changes such that the federal or state tax exemption of municipal debt is eliminated or its value reduced. There have been no tax law changes since the execution of the City's swap transactions.
5. Termination Risk. The risk that the swap could be terminated as a result of certain events including a ratings downgrade for the issuer or swap counterparty, covenant violation, bankruptcy, payment default or other defined events of default. Termination of a swap may result in a payment made by the issuer or to the issuer depending upon the market at the time of termination.
6. Swap payments and associated debt. Bonds maturing and interest payable January 1, 2013 have been excluded because funds for their payment have been provided for. As of December 31, 2012, debt service requirements of the City's outstanding variable-rate debt and net swap payments, assuming current interest rates remain the same, for their term are as follows (dollars in thousands):

77

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

Interest

Variable-Rate Bonds      Rate

Year Ending                     Principal      Interest      Swaps, Net      Total

December 31,

1.       $     22,070    $      4,844      $     71,650    $ 98,564
2.       36,320            4,866      70,701      111,887
3.       37,865            4,818      69,379      112,062
4.       57,465            4,759      67,786      130,010
5.       60,150            4,563      65,663      130,376

2018-2022            390,265          19,706      291,232      701,203

2023-2027            383,250           13,566      213,664      610,480

2028-2032            445,040            9,035      144,946      599,021

2033-2037            360,745            3,754      60,522      425,021

2038 - 2042                                 133,855      441      10,943      145,239

$ 1,927,025    $     70,352    $ 1,066,486    $ 3,063,863

ii) Swaptions

During 2012, the City terminated all outstanding swaptions, as noted below.

In April 2012, the City terminated the swaption transaction with J.P. Morgan in relation to Chicago Midway International Airport bonds with an original notional amount of $397.7 million and a trade date of October 27, 1999. The City paid $8.2 million to terminate the swaption. Note that $8.3 million of Chicago Midway Airport Commercial Paper Notes Series 2003 were issued to fund the swaption termination payment.

In May 2012, the City terminated three swaption transactions with J.P. Morgan in relation to Chicago Sales Tax Revenue bonds with notional amounts of $69.3 million, $60.6 million and $23.3 million and a trade date of June 21, 2002. The City paid $0.54 million, $0,365 million and $0.02 million respectively to terminate the swaptions. Note that $1.0 million of General Obligation Commercial Paper Notes Series 2002 were issued to fund the Sales Tax Revenue Bonds swaptions termination payments.

In July 2012, the City terminated the swaption transaction with Goldman Sachs in relation to General Obligation bonds with a total notional amount of $318.7 million and a trade date of December 18, 2003. The City paid a total of $4.9 million to terminate the swaption. Note that $4.9 million of General Obligation Commercial Paper Notes Series 2003 were issued to fund the swaption termination payment.

e)  Debt Covenants

i) Water Fund - The ordinances authorizing the issuance of outstanding Water Revenue Bonds provide for the creation of separate accounts into which net revenues, as defined, or proceeds are to be credited, as appropriate. The ordinances require that net revenues available for bonds, as adjusted, equal 120 percent of the current annual debt service on the outstanding senior lien bonds and that City management maintains all covenant reserve account balances at specified amounts. The above requirements were met at December 31, 2012. The Water Rate Stabilization account had a balance in restricted assets of $74.9 million at December 31, 2012.

The ordinances authorizing the issuance of outstanding Second Lien Water Revenue Bonds provide for the creation of separate accounts into which monies will be deposited, as appropriate. The ordinances

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CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

require that net revenues are equal to the sum of the aggregate annual debt service requirements for the fiscal year of the outstanding senior lien bonds and 110 percent of the aggregate annual debt service requirements of the outstanding second lien bonds. This requirement was met at December 31, 2012.

II) Sewer Fund - The ordinances authorizing the issuance of outstanding Wastewater Transmission Revenue Bonds provide for the creation of separate accounts into which net revenues, as defined, or proceeds are to be credited, as appropriate. The ordinances require that net revenues available for bonds equal 115 percent of the current annual debt service requirements on the outstanding senior lien bonds. This requirement was met at December 31, 2012. The Sewer Rate Stabilization account had a balance in restricted assets of $29.6 million at December 31, 2012.

The ordinances authorizing the issuance of outstanding Second Lien Wastewater Transmission Revenue Bonds provide for the creation of separate accounts into which monies will be deposited, as appropriate. The ordinances require that net revenues equal 100 percent of the sum of the current maximum annual debt service requirements of the outstanding senior lien bonds and the maximum annual debt service requirements of the second lien bonds. This requirement was met at December 31, 2012.

1. Chicago Midway International Airport Fund - The master indenture securing the issuance of Chicago Midway International Airport Revenue Bonds requires that the City set rates and charges for the use and operation of Midway so that revenues, together with any other available monies and the cash balance held in the Revenue Fund on the first day of such year not required to be deposited in any fund or account, will be at least sufficient (a) to provide for the operation and maintenance expenses for the year and (b) to provide for the greater of (i) the amounts needed to be deposited into the First and Junior Lien Debt Service Fund, the Operations & Maintenance Reserve Account, the Working Capital Account, the First Lien Debt Service Reserve Fund, the Repair and Replacement Fund, and the Special Project Fund and (ii) an amount not less than 125 percent of the Aggregate First Lien Debt Service for such fiscal year reduced by an amount equal to the sum of any amount held in any capitalized interest account for disbursement during such fiscal year to pay interest on First Lien Bonds. These requirements were met at December 31, 2012.
2. Chicago-O'Hare International Airport Fund - In 1983, the City Council adopted the General Airport Revenue Bond ordinance authorizing the issuance and sale of Chicago-O'Hare International Airport General Airport Revenue Bonds in unlimited series for the purpose of financing the cost of improvements and expansion of O'Hare and to redeem its existing outstanding bond obligations. The ordinance further permits the issuance of second lien notes, bonds and other obligations which are payable from, and secured by, a pledge of amounts deposited in the junior lien obligation debt service account created under the ordinance. The ordinance requires that net revenues in each year equal not less than the sum of (i) the amount required to be deposited for such year in the debt service reserve fund, the maintenance reserve fund, the special capital projects fund and the junior lien debt service fund, and (ii) 110 percent of the aggregate first lien and second lien debt service for the bond year commencing during such fiscal year reduced by an amount equal to the sum of any amount held in any capitalized interest account for disbursement during such fiscal year to pay interest on bonds. This requirement was met at December 31, 2012. The ordinance provides for the creation of separate accounts that are to be credited with revenues in a specified priority. At the end of each year, any excess funds over amounts required in accounts other than Special Capital Projects, Emergency Reserve and Airport Development accounts are reallocated with the following year's revenues.

The Master Indenture of Trust securing Chicago-O'Hare International Airport Third Lien Obligations requires that Revenues in each Fiscal Year, together with Other Available Moneys deposited with the Trustee with respect to that Fiscal Year and any cash balance held in the Revenue Fund on the first day of that Fiscal Year not then required to be deposited in any Fund or Account, will be at least sufficient: (i) to provide for the payment of Operation and Maintenance Expenses for the Fiscal Year; and (ii) to provide for the greater of (a) the sum of the amounts needed to make the deposits required to be made pursuant to all resolutions, ordinances, indentures and trust agreements pursuant to which all outstanding First Lien Bonds, Second Lien Obligations, Third Lien Obligations or other Airport Obligations are issued and

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CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

secured, and (b) 110 percent the Aggregate First, Second and Third Lien Debt Service for the Bond Year commencing during that Fiscal Year, reduced by any proceeds of Airport Obligations held by the Trustee for disbursement during that Bond Year to pay principal of and interest on First Lien Bonds, Second Lien obligations or Third Lien obligations. This requirement was met at December 31, 2012.

The master indenture securing the Passenger Facility Charge (PFC) Revenue Bonds requires PFC revenues, as defined, to be deposited into the PFC Revenue Fund. The PFC Revenue Fund is required to transfer amounts no later than the twentieth day of each month to various funds, as defined, as appropriate to meet debt service and debt service reserve requirements.

f) No-Commitment Debt and Public Interest Loans include various special assessment, private activity bonds and loans. These types of financings are used to provide private entities with low-cost capital financing for construction and rehabilitation of facilities deemed to be in the public interest. Bonds payable on no-commitment debt are not included in the accompanying financial statements because the City has no obligation to provide for their repayment, which is the responsibility of the borrowing entities. In addition, federal programs/grants, including Community Development Block Grants and Community Service Block Grants, provide original funding for public interest loans. Loans receivable are not included as assets because payments received on loans are used to fund new loans or other program activities in the current year and are not available for general City operating purposes. Loans provided to third parties are recorded as current and prior year programs/grants expenditures. Funding for future loans will be from a combination of the repayment of existing loans and additional funds committed from future programs/grants expenditures.

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CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

g) Defeased Bonds have been removed from the Statement of Net Position because related assets have been placed in irrevocable trusts that, together with interest earned thereon, will provide amounts sufficient for payment of all principal and interest. Defeased bonds at December 31, 2012, not including principal payments due January 1, 2013, are as follows (dollars in thousands):

Amount

Defeased Outstanding

Emergency Telephone System - Series 1993            $   213,730    $ 123,115

General Obligation Refunding Bonds - Series 1993B            27,515      6,000

General Obligation Project and Refunding Bonds - Series 1998             345,770      14,005

General Obligation Bonds - Series 2001A            404,131      131,515

General Obligation Project and Refunding Bonds - Series 2003A            108,000      67,690

General Obligation Project Bonds - Series 2003C            126,960      116,710

General Obligation Project Bonds - Series 2004A            276,620      256,060

General Obligation Project and Refunding Bonds - Series 2005A            72,690      59,630

General Obligation Project and Refunding Bonds - Series 2005B            8,725      4,465

General Obligation Direct Access Bonds - Series 2005E            22,186      10,835

General Obligation Project and Refunding Bonds - Series 2006A            23,775      13,285

General Obligation Direct Access Bonds - Series 2006             4,755      2,635

General Obligation Project and Refunding Bonds - Series 2007A            10,505      9,710

General Obligation Project and Refunding Bonds - Series 2007C            23,805      11,530

General Obligation Project and Refunding Bonds - Series 2008             210      105

Neighborhoods Alive 21 Program - Series 2001A            213,825      60,170

Neighborhoods Alive 21 Program - Series 2003             90,600      83,440

Lake Millenium Project Parking Facilities Bonds - Series 1998             149,880      43,880

Near South Redevelopment Project Tax Increment - Series 1994A            23,000      3,825

Chatham Ridge Redevelopment Project Tax Increment - Series 2002            6,565      3,575

Special Transportation Revenue Bonds - Series 2001             118,715      97,290

Midway 2nd Lien Series 2010D-1            4,435      4,435

Midway 2nd Lien Series 2010D-2            16,460      16,460

Total            $ 2,292,857     $ 1,140,365

81

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

11) Pension Trust Funds

a) Retirement Benefit-Eligible City employees participate in one of four single-employer defined benefit pension plans (Plans). These Plans are: the Municipal Employees'; the Laborers' and Retirement Board Employees'; the Policemen's; and the Firemen's Annuity and Benefit Funds of Chicago. Plans are administered by individual retirement boards represented by elected and appointed officials. Certain employees of the Chicago Board of Education participate in the Municipal Employees' or the Laborers' and Retirement Board Employees' Annuity and Benefit Funds for which the City levies taxes to make the required employer contributions. Each Plan issues a publicly available financial report that includes financial statements and required supplementary information.

The financial statements of the Plans are prepared using the accrual basis of accounting. Employer and employee contributions are recognized in the period in which employee services are performed. Benefits and refunds are recognized when payable.

Plan investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on national or international exchanges are valued at the last reported sales price at current exchange rates. Fixed income securities are valued principally using quoted market prices provided by independent pricing services. For collective investments, the net asset value is determined and certified by the investment managers as of the reporting date. Real estate investments are generally valued by appraisals or other approved methods. Investments that do not have an established market are reported at estimated fair value.

The Plans have a securities lending program. At year-end, the Plans have no credit risk exposure to borrowers because the amounts the Plans owe the borrowers exceed the amounts the borrowers owe the Plans. The contract with the Plans' master custodian requires it to indemnify the Plans if the borrowers fail to return the securities (and if the collateral is inadequate to replace the securities lent) or fail to pay the fund for income distributions by the securities' issuers while the securities are on loan. All securities loans can be terminated on demand by either the Plans or the borrower, although the average term of the loans has not exceeded 131 days. The Plans' custodian lends securities for collateral in the form of cash, irrevocable letters of credit and/or U.S. government obligations equal to at least 102 percent of the fair value of securities or international securities for collateral of 105 percent. Cash collateral is invested in the lending agents' short-term investment pool, which at year-end has a weighted average maturity that did not exceed 81 days. The Plans cannot pledge to sell collateral securities received unless the borrower defaults. Loans outstanding as of December 31, 2012 are as follows: market value of securities loaned $1,122.8 million, market value of cash collateral from borrowers $1,126.1 million and market value of non-cash collateral from borrowers $17.3 million.

The Plans provide retirement, disability, and death benefits as established by State law. Benefits generally vest after 20 years of credited service. Employees who retire at or after age 55 (50 for policemen and firemen) with 20 years of credited service qualify to receive a money purchase annuity and those with more than 20 years of credited service qualify to receive a minimum formula annuity. The annuity is computed by multiplying the final average salary by a percentage ranging from 2.0 percent to 2.4 percent per year of credited service. The final average salary is the employee's highest average annual salary for any four consecutive years within the last 10 years of credited service.

State law requires City contributions at statutorily, not actuarially determined rates. The City's contribution is equal to the total amount of contributions by employees to the Plan made in the calendar year two years prior, multiplied by 1.25 for the Municipal Employees', 1.00 for the Laborers', 2.00 for the Policemen's, and 2.26 for the Firemen's. State law also requires covered employees to contribute a percentage of their salaries.

82

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

The City's annual pension cost for the current year      and related information for each Plan is as follows (dollars in

thousands):

Municipal

Employees'      Laborers'      Policemen's      Firemen's      Total

Contribution rates:

City (a)                                         (a)      (a)      (a)      (a)      n/a

Plan members                                  8.5%      8.5%      9%      9.125%      n/a

Annual required contribution                 $  690,823      $   77,566      $   431,010      $   271,506      $ 1,470,905

Interest on net pension obligation                117,591      (10,377)      165,221      120,807      393,242

Adjustment to annual required

contribution                                      (120,895)      10,668      (112,872)      (124,201)      (347,300)

Annual pension cost                              687,519      77,857      483,359      268,112      1,516,847

Contributions made                               148,859      11,853      197,886      81,522      440,120

Increase in net pension obligation.. 538,660      66,004      285,473      186,590      1,076,727

Net pension obligation (excess),

beginning of year                             1,469,886      (129,712)      2,065,266      1,510,089      4,915,529

Net pension obligation (excess),

end of year                                  $2,008,546      $ (63,708) *      $ 2,350,739      $ 1,696,679      $ 5,992,256

Laborers' net pension excess is recorded in other assets in the statement of net position.

Municipal

Employees'      Laborers'      Policemen's

Actuarial valuation date            12/31/2012      12/31/2012 12/31/2012

Actuarial cost method                        Entry age normal      Entry age normal      Entry age normal

Amortization method                         Level dollar, open      Level dollar, open      Level percent, open

Remaining amortization period                   30 years      30 years      30 years

Asset valuation method                       5-yr. Smoothed      5-yr. Smoothed      5-yr. Smoothed

Market      Market      Market

Actuarial assumptions:

Investment rate of return (a)                     7.5%      7.5%      7.75%

Projected salary increases (a):

Inflation                                            3.0      3.0      3.0

Seniority/Merit                                     (b)      (c)      (d)

Postretirement benefit increases                   (f)      (f)      (g)

1. Proceeds from a tax levy not more than the amount equal to the total amount of contributions by

the employees to the Fund made in the calendar year, two years prior to the year for which the annual

applicable tax is levied multiplied by 1.25 for Municipal, 1.00 for Laborers', 2 00 Policemen's and 2.26 for Firemen's

1. Service-based increases equivalent to a level annual rate increase of 1.4 percent over a full career.
2. Service-based increases equivalent to a level annual rate increase of 1.2 percent over a full career.
3. Service-based increases equivalent to a level annual rate increase of 2.8 percent over a full career
4. Service-based increases equivalent to a level annual rate increase of 3.0 percent over a full career.
5. 3.0 percent per year beginning at the earlier of:

1. 1. the later of the first of January of the year after retirement and age 60;
   2. the later of the first of January of the year after the second anniversary of retirement and age 53.
2. Uses 3.0 percent per year for annuitants age 55 or over, born before 1955 with at least 20 years of service and 1 5 percent per year for 20 years for annuitants age 60 or over, born in 1955 or later

Firemen's

12/31/2012

Entry age normal Level dollar, open

30 years 5-yr. Smoothed Market

8.0%

3.0 (e)

(g)

83

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

The following tables of information assist users in assessing each fund's progress in accumulating sufficient assets to pay benefits when due. The three-year historical information for each Plan is as follows (dollars in thousands):

Annual      % of Annual      Net Pension

Pension      Pension Cost      (Asset) /

      Year            Cost      Contributed      Obligation

Municipal Employees':

1.       $      482,420      32.08%      $ 1,007,406
2.       609,491      24.12      1,469,886
3.       687,519      21.65      2,008,546

Laborers':

1.       47,129      32.57      (174,585)
2.       57,651      22.17      (129,712)
3.       77,857      15.22      (63,707)

Policemen's:

1.       403,228      43.28      1,791,146
2.       448,153      38.83      2,065,266
3.       483,359      40.94      2,350,739

Firemen's:

1.       215,666      37.53      1,345,927
2.       247,031      33.55      1,510,089
3.       268,112      30.41      1,696,679

Unfunded (Surplus)

AAL

(b-a)

$ 11,828,666   $ 5,825,276 12,292,930 6,740,639

8,402,057

500,621 730,440 1,020,275

5,491,101 6,077,705 6,902,897

2,456,912 2,750,177 3,026,854

SCHEDULE OF FUNDING PROGRESS

Actuarial Accrued Liability (AAL) Entry Age (b)

(dollars in thousands)

Actuarial

Actuarial      Value of

Valuation      Assets

      Year      Date      (a)

Municipal Employees':

13,475,377

2,030,025 2,152,854 2,336,189

9,210,056 9,522,395 10,051,827

3,655,026 3,851,919 4,020,138

1.       12/31/10 $ 6,003,390
2.                      12/31/11      5,552,291
3.                      12/31/12      5,073,320

Laborers':

1.                      12/31/10      1,529,404
2.                      12/31/11      1,422,414
3.                      12/31/12      1,315,914

Policemen's:

1.                      12/31/10      3,718,955
2.                      12/31/11      3,444,690
3.                      12/31/12      3,148,930

Firemen's:

1.                      12/31/10      1,198,114
2.                      12/31/11      1,101,742
3.                      12/31/12      993,284

Funded Ratio (alb)

51 % $

45

38

75 66 56

40 36 31

33 29 25

Covered Payroll (c)

1,541,388 1,605,993 1,590,794

199,863 195,238 198,790

1,048,084 1,034,403 1,015,171

400,404 425,385 418,965

Unfunded (Surplus) AAL as a Percentage of Covered Payroll ((b-a)/c)

378 %

420

528

250 374 513

524 588 680

614 647 722

84

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

The unfunded liability to the Plans poses significant financial challenges. The unfunded liability has consistently increased in recent years, and actuaries for the Municipal Employees' Plan and the Laborers' Plan indicate that the unfunded liability of those plans will continue to increase for the foreseeable future. Although the actuaries for the Policemen's and the Firemen's Plans project that the unfunded liabilities of those Plans will decrease in the future, such a decrease will result from significantly increased contributions to those Plans as a result of State Law. Furthermore, the contributions made by the City to the Plans have been lower than the cash outlays of the Plans in recent years. As a result, the Plans have used investment earnings or assets of the Plans to satisfy these cash outlays. The use of investment earnings or assets of the Plans for these purposes reduces the amount of assets on hand to pay benefits in the future and prevents the Plans from recognizing the full benefits of compounding investment returns. Since 2001, the City has contributed to the Plans as required by State Law. However, this amount has not been sufficient to fully fund the Normal Cost plus an amortized portion of the UAAL in each year as a result of a contribution limitation which has had the effect, and may have the effect in the future, of limiting the Pension Levy to an amount insufficient to fully fund the Plans to the amount of the Actuarially Required Contribution. No assurance can be made that the State Law applicable to the Plans will not be amended in the future.

b) Other Post Employment Benefits (OPEB) - Under State law, certain health benefits are available to employees who retire from the City based upon their participation in the City's pension plans. The Pension Plans and the City agreed to share in the cost of the Settlement Health Care Plan (see Note 12). This single employee defined benefit plan is administered by the City. Substantially all employees who qualify as Municipal or Laborers' pension plan participants older than age 55 with at least 20 years of service and Police and pension plan participants older than age 50 with at least 10 years of service may become eligible for postemployment benefits if they eventually become an annuitant. Health benefits include basic benefits for annuitants and supplemental benefits for Medicare eligible annuitants. The amounts below represent the accrued liability of the City's pension plans related to their own employees and a subsidy paid to the City (see Note 12). The plan is financed on a pay as you go basis (dollars in thousands).

Annual OPEB Cost and Contributions Made For Fiscal Year Ending December 31, 2012

Municipal

Employees'   Laborers'  Policemen's Firemen's Total

Contribution Rates City:      A portion of the City's contribution from the tax levy is used to

finance the health insurance supplement benefit payments.

Annual Required Contribution      $     14,632    $     3,070    $     10,474    $    4,276    $ 32,452

Interest on Net OPEB Obligation      3,041 248 479 398 4,166

Adjustment to Annual -

Required Contribution      (3,970)      (324)       (380)      (520) (5,194)

Annual OPEB Cost      13,703           2,994           10,573           4,154 31,424

Contributions Made      9,522      2,562      9,766      2,622 24,472

Increase in

Net OPEB Obligation      4,181 432 807 1,532 6,952

Net OPEB Obligation,

Beginning of Year      67,575      5,519      10,654      8,850 92,598

Net OPEB Obligation,

End of Year      $     71,756    $     5,951    $     11,461    $   10,382    $ 99,550

85

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

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

Municipal Employees'

rate of increase of 1.4 percent over a full career rate of increase of 1.2 percent over a full career rate of increase of 1.8 percent over a full career rate of increase of 1.8 percent over a full career

12/31/2012

Entry Age Normal

Level Dollar, Open

30 years

No Assets (Pay-as-you-go)

Actuarial Valuation Date Actuarial Cost Method

Amortization Method

Remaining Amortization Method

Asset Valuation Method

4.5% 3.0%

(b) 0.0%

Actuarial assumptions: OPEB Investment Rate of Return (a)

Projected Salary Increases (a) Inflation

Seniority / Merit Healthcare Cost Trend Rate (f) ( a ) Compounded Annually

( b ) Service-based increases equivalent to a level annual ( c ) Service-based increases equivalent to a level annual ( d ) Service-based increases equivalent to a level annual ( e ) Service-based increases equivalent to a level annual (f) Trend not applicable - fixed dollar subsidy

Laborers'

12/31/2012

Entry Age Normal

Level Dollar, Open

30 years

No Assets (Pay-as-you-go)

4.5% 3.0%

(c) 0.0%

Policemen's

12/31/2012

Entry Age Normal

Level Percent, Open

30 years

No Assets (Pay-as-you-go)

4.5% 3.0%

(d) 0.0%

Firemen's

12/31/2012

Entry Age Normal

Level Dollar, Open

30 years

No Assets (Pay-as-you-go)

4.5% 3.0%

(e) 0.0%

OPEB COST SUMMARY

(dollars in thousands)

Annual    % of Annual Net

OPEB      OPEB OPEB

Year      Cost      Obligation Obligation

Municipal Employees'

Laborers'

Policemen's

Firemen's

2010      $ 22,375

1. 22,047
2. 13,703

1. 3,559
2. 3,479
3. 2,994

1. 10,736
2. 10,627
3. 10,573

1. 4,354
2. 4,372
3. 4,154

42.68 %   $ 55,045

43.16      67,575

69.49      71,756

72.68      4,619

74.15      5,519

85.56      5,951

87.13      9,619

90.25      10,654

92.37      11,461

60.74      7,107

1. 8,850
2. 10,382

86

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revisions as the results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presents, as required, supplementary information following the notes to the financial statements (dollars in thousands, unaudited).

Actuarial Valuation Date

Municipal

Employees'      12/31/2012 $

Laborers'      12/31/2012

Policemen's      12/31/2012

Firemen's      12/31/2012

Actuarial Value of Assets (a)

Actuarial Accrued Liability (AAL) Entry Age (b)

$   162,083 $ 38,653 168,811 46,206

Unfunded (Surplus) UAAL (b-a)

162,083 38,653

168,811 46,206

Funded Ratio (a/b)

Covered Payroll (c)

$ 1,590,794 198,790 1,015,171 418,965

Unfunded (Surplus) AAL as a Percentage of Covered

Payroll (( b-a)/c)

10.19 % 19.44 16.63 11.03

12) Other Post Employment Benefits - City Obligation

The annuitants who retired prior to July 1, 2005 received a 55 percent subsidy from the City and the annuitants who retired on or after July 1, 2005 received a 50, 45, 40 and zero percent subsidy from the City based on the annuitant's length of actual employment with the City for the gross cost of retiree health care under a court approved settlement agreement. The pension funds contributed $65 per month for each Medicare eligible annuitant and $95 per month for each Non-Medicare eligible annuitant to their gross cost. The annuitants contributed a total of $67.8 million in 2012 to the gross cost of their retiree health care pursuant to premium amounts set forth in the above-referenced settlement agreement.

The cost of health benefits is recognized as an expenditure in the accompanying financial statements as claims are reported and are funded on a pay-as-you-go basis. In 2012, the net expense to the City for providing these benefits to approximately 24,408 annuitants plus their dependents was approximately $97.5 million.

The City's net expense and the annuitants' contribution indicated above are preliminary and subject to the reconciliation per the court approved settlement agreement.

Plan Description Summary- The City of Chicago is party to a written legal settlement agreement outlining the provisions of the retiree health program, The Settlement Health Care Plans (the Plans), through June 30, 2013. The agreement does not require or extend continuation of the Plans after June 30, 2013. Pursuant to the Settlement, the City administers a single employer defined benefit healthcare plan (the Health Plan), for which the City pays a portion of the costs on a pay as you go method. Under the Settlement agreement, the City of Chicago sponsors health benefit plans for employees, former employees and retired former employees. The provisions of the program provide in general, that the City pay a percentage of the cost (based upon an employee's service) for hospital and medical coverage to eligible retired employees and their dependents for a specified period, until June 30, 2013 (see Note 17 for subsequent update).

In addition, Illinois Compiled Statutes authorize the four respective Pension Funds (Police, Fire, Municipal, and Laborers) to provide a fixed monthly dollar subsidy to each annuitant who has elected coverage under the Health Plan through June 30, 2013. After that date, no supplements are authorized.

87

i

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

The liabilities for the monthly dollar supplements paid to annuitants enrolled in the retiree medical plan by their respective Pension Funds are included in the NPO valuation reports of the respective four Pension Funds (see Note 11).

Special Benefits under the Collective Bargaining Agreements (CBA) - Under the terms of the latest collective bargaining agreements for the Fraternal Order of Police and the International Association of Fire Fighters, certain employees who retire after attaining age 55 with the required years of service are permitted to enroll themselves and their dependents in the healthcare benefit program offered to actively employed members. They may keep this coverage until they reach the age of Medicare eligibility. These retirees do not contribute towards the cost of coverage, but the Police pension fund contributes $95 per month towards coverage for police officers (which is assumed to continue); the Fire Pension Fund does not contribute. Once CBA early retirees reach Medicare eligibility age, their healthcare benefits are provided under the provisions of the Settlement Plan.

No extension of the CBA has been negotiated as of the end of the governing contract period (June 30, 2012), and therefore this valuation assumes the expiration of the early retirement special benefits as of December 31, 2012, but includes the liabilities for continuation of payments to those members already retired under the CBA as of December 31, 2012.

Funding Policy - The City's retiree health plan is a single employer plan which operates on a pay as you go funding basis. No assets are accumulated or dedicated to funding the retiree health plan benefits.

Annual OPEB Cost and Net OPEB Obligation - The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC). The ARC (Annual Required Contribution) represents a level of funding, that if paid on an ongoing basis, is projected to cover the normal cost each year and to amortize any unfunded actuarial liabilities over a period of one year (the remaining year of coverage under the Settlement agreement).

The following table shows the components of the City's annual OPEB costs for the year for the Health Plan and CBA Special Benefits, the amount actually contributed to the plan and changes in the City's net OPEB obligation. The Net OPEB Obligation is the amount entered upon the City's Statement of Net Position as of year end as the net liability for the other postemployment benefits - the retiree health plan. The amount of the annual cost that is recorded in the Statement of Changes in Net Position for 2012 is the Annual OPEB Cost (expense).

Annual OPEB Cost and Contributions Made

(dollars in thousands)

Retiree CBA

Settlement Special

Health Plan      Benefits      Total

Contribution Rates:

City      Pay As You Go      Pay As You Go      Pay As You Go

Plan Members      N/A      N/A N/A

Annual Required Contribution      $        194,291      58,456      $ 252,747

Interest on Net OPEB Obligation      2,353      1,463 3,816

Adjustment to Annual Required Contribution      (159,200)      (20,386) (179,586)

Annual OPEB Cost      37,444      39,533 76,977

Contributions Made      97,531      18,430 115,961

Decrease in Net OPEB Obligation      (60,087)      21,103 (38,984)

Net OPEB Obligation, Beginning of Year       156,847      97,498      254,345

Net OPEB Obligation, End of Year      $      96,760      118,601    $ 215,361

88

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year 2012 is as follows (dollars in thousands):

Schedule of Contributions,

      OPEB Costs and Net Obligations      

Fiscal Year      Annual     Percentage of Annual    Net OPEB

      Ended      OPEB Cost OPEB Cost Contributed Obligation

96,760 254,345 304,483

260.5%

202.4

129.6

Settlement Plan

12/31/2012      $ 37,444

12/31/2011      48,954

12/31/2010      82,874

46.6%

$ 118,601

CBA Special Benefits

12/31/2012      $ 39,533

150.6%

202.4

129.6

215,361 254,345 304,483

Total

12/31/2012      $ 76,977

12/31/2011      48,954

12/31/2010      82,874

Funded Status and Funding Progress - As of January 1, 2012, the most recent actuarial valuation date, the actuarial accrued liability for benefits was $471.0 million all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was approximately $2,518.7 million and the ratio of the unfunded actuarial accrued liability to the covered payroll was 18.7 percent.

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revisions as the results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presents, as required, supplementary information following the notes to the financial statements (dollars in thousands, unaudited).

Unfunded UAAL

Actuarial           Actuarial      Actuarial         Actuarial      as a

Valuation          Value of      Accrued     Accrued Liability Funded      Covered     Percentage of

      Date      Assets    Liability (AAL)       (UAAL)      Ratio      Payroll     Covered Payroll

Settlement Plan

12/31/2011      $      $   191,378    $      191,378      0%     $ 2,518,735      7.6 %

CBA Special Benefits

12/31/2011      $      $   279,574    $      279,574      0%     $ 1,471,692      19.0%

Total

12/31/2011      $      $   470,952    $      470,952      0%      $ 2,518,735      18 7%

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

89

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

For the Settlement Plan benefits (not provided by the Pension Funds) in the actuarial valuation for the fiscal year ended December 31, 2012, the projected unit credit actuarial cost method was used. The actuarial assumptions included an annual healthcare cost trend rate of 10.5 percent initially, reduced by decrements to an ultimate rate of 10.0 percent. Both rates included a 3.0 percent inflation assumption. The plan has not accumulated assets and does not hold assets in a segregated trust. However, the funds expected to be used to pay benefits are assumed to be invested for durations which will yield an annual return rate of 1.5 percent. The Unfunded Accrued Actuarial Liability is being amortized as a level dollar amount over one year.

For the Special Benefits under the CBA for Police and Fire, the contract expiration date of June 30, 2012 is reflected, such that liabilities are included only for payments beyond 2012 on behalf of early retirees already retired and in pay status as of December 31, 2012. Assumptions and methods were selected to reflect the expiring obligation. The projected unit credit method was selected. The actuarial assumptions included an annual healthcare cost trend rate of 10.5% in 2012, reduced by decrements to an ultimate rate of 5.0% in 2030. Rates included a 3% inflation assumption. The plan has not accumulated assets and does not hold assets in a segregated trust. The funds expected to be used to pay benefits are assumed to be invested for durations which will yield an annual return rate of 1.50%. The remaining Unfunded Accrued Actuarial Liability is being amortized as a level dollar amount over five years.

Summary of Assumptions and Methods

Actuarial Valuation Date

Actuarial Cost Method

Amortization Method

Remaining Amortization Period

Asset Valuation Method

Actuarial Assumptions: Investment Rate of Return Projected Salary Increases Healthcare Inflation Rate

Settlement Health Plan

December 31, 2011 Projected Unit Credit Level Dollar

1 year Market Value

1.50% 3.0%

10.5% in 2012 to 10.0% in 2013

CBA Special Benefits

December 31, 2011 Projected Unit Credit Level Dollar

5 years Market Value

1.50% 3.0%

10.5% initial to 5.0% in 2030

13) Risk Management

The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; certain benefits for and injuries to employees and natural disasters. The City provides worker's compensation benefits and employee health benefits under self-insurance programs except for insurance policies maintained for certain Enterprise Fund activities. The City uses various risk management techniques to finance these risks by retaining, transferring and controlling risks depending on the risk exposure.

Risks for O'Hare, Midway, and certain other major properties, along with various special events, losses from certain criminal acts committed by employees and public official bonds are transferred to commercial insurers. Claims have not exceeded the purchased insurance coverage in the past three years, accordingly, no liability is reported for these claims. All other risks are retained by the City and are self-insured. The City pays claim settlements and judgments from the self-insured programs. Uninsured claim expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. The General Fund is primarily used to record all non-Enterprise Fund claims. The estimated portion of non-Enterprise Fund claims not yet settled has been recorded in the Governmental Activities in the Statement of Net Position as claims payable along with amounts related to deferred compensatory time and estimated liabilities for questioned costs. As of December 31, 2012, the total amount of non-Enterprise Fund claims was $556.5 million and Enterprise Fund was $52.0 million. This liability is the City's best estimate based on available information. Changes in the reported liability for all funds are as follows (dollars in thousands):

90

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

2012      2011

Balance, January 1            $ 554,797      $555,285

Claims incurred and

change in estimates                                 755,278      585,980

Claims paid on current and

prior year events                                     (701,590)      (586,468)

Balance, December 31            $ 608,485      $554,797

14) Expenditure of Funds and Appropriation of Fund Balances

The City expends funds by classification as they become available, and "Restricted" funds are expended first. If/when City Council formally sets aside or designates funds for a specific purpose, they are considered "Committed'. The Mayor (or his/her designee) may in this capacity, also set aside or designate funds for specific purposes and all of these funds will be considered "Assigned'. Any remaining funds, which are not specifically allocated in one or more of the previous three categories, are considered "Unassigned' until such allocation is completed.

In addition to the categories above, any amounts which will be used to balance a subsequent year's budget will be considered "Assigned" as Budgetary Stabilization funds. The amounts may vary from fiscal year to fiscal year or depending on the City's budgetary condition, or may not be designated at all. The funds may be assigned by the Mayor or his designee, up to the amount of available "Unassigned" fund balance at the end of the previous fiscal year.

a)   Fund Balance Classifications

On the fund financial statements, the Fund Balance consists of the following (dollars in thousands):

Nonspendable for Inventory                                       $      20,885

Restricted for Grants and Donations            27,821

Restricted for Debt Service            313,623

Restricted for TIF & Special Service Area

Programs and Redevelopment            1,499,414

Restricted for Capital Projects            487,762

Committed for Debt Service            156,836

Committed for Budget and Credit Rating Stabilization            624,849

Committed for Repair, Maintenance and City Services            100,442

Assigned for Future Appropriated Fund Balance            160,395

Assigned for Encumbrances            16,605

Restricted for Special Events            4,291

Unassigned            (1,819,556)

Total Government Fund Balance            $ 1,593,367

At the end of the fiscal year, total encumbrances for the General Operating Fund amounted to $16.6 million, $19.1 million for the Special Taxing Areas Fund, $34.8 million for the Capital Projects Fund and $10.8 million for the Non Major Special Revenue Fund.

15) Commitments and Contingencies

The City is a defendant in various pending and threatened individual and class action litigation relating principally to claims arising from contracts, personal injury, property damage, police conduct, alleged discrimination, civil rights actions and other matters. City management believes that the ultimate resolution of these matters will not have a material adverse effect on the financial position of the City.

91

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

The City participates in a number of federal-and state-assisted grant programs. These grants are subject to audits by or on behalf of the grantors to assure compliance with grant provisions. Based upon past experience and management's judgment, the City has made provisions in the General Fund for questioned costs and other amounts estimated to be disallowed. City management expects such provision to be adequate to cover actual amounts disallowed, if any.

As of December 31, 2012, the Enterprise Funds have entered into contracts for approximately $565.5 million for construction projects.

The City's pollution remediation obligation of $8.4 million is primarily related to Brownfield redevelopment projects. These projects include removal of underground storage tanks, cleanup of contaminated soil, and removal of other environmental pollution identified at the individual sites. The estimated liability is calculated using the expected cash flow technique. The pollution remediation obligation is an estimate and subject to changes resulting from price increases or reductions, technology, or changes in applicable laws or regulations.

1. Concession Agreements

The major fund entitled Service Concession and Reserve Fund is used for the purpose of accounting for the deferred inflows associated with governmental fund long-term lease and concession transactions. Deferred inflows are amortized over the life of the related lease and concession agreements. Proceeds from these transactions may be transferred from this fund in accordance with ordinances approved by City Council that define the use of proceeds.

In February 2009, the City completed a $1.15 billion concession agreement to allow a private operator to manage and collect revenues from the City's metered parking system for 75 years. The City received an upfront payment of $1.15 billion which was recognized as a deferred inflow that will be amortized and recognized as revenue over the term of the agreement. The City recognizes $15.3 million of revenue for each year through 2083.

In December 2006, the City completed a long-term concession and lease of the City's downtown underground public parking system. The concession granted a private company the right to operate the garages and collect parking and related revenues for the 99-year term of the agreement. The City received an upfront payment of $563.0 million of which $347.8 million was simultaneously used to purchase three of the underground garages from the Chicago Park District. The City recognized a deferred inflow that will be amortized and recognized as revenue over the term of the lease. The City recognizes $5.7 million of revenue for each year through 2105.

In January 2005, the City completed a long-term concession and lease of the Skyway. The concession granted a private company the right to operate the Skyway and to collect toll revenue from the Skyway for the 99-year term of the agreement. The City received an upfront payment of $1.83 billion; a portion of the payment ($446.3 million) advance refunded all of the outstanding Skyway bonds. The City recognized a deferred inflow of $1.83 billion that will be amortized and recognized as revenue over the 99-year term of the agreement. The City recognizes $18.5 million of revenue related to this transaction for each year through 2103. Skyway land, bridges, other facilities and equipment continue to be reported on the Statement of Net Position and will be depreciated, as applicable, over their useful lives. The deferred inflow of the Skyway is reported in the Proprietary Funds Statement of Net Position.

1. Subsequent Events

As of December 31, 2012, the outstanding balance for Chicago General Obligation Commercial Paper Notes (G.O. CP) was $166.5 million. As of the date of this report, the City has paid $95.0 million of G.O. CP, issued $69.1 million to fund various authorized capital projects, and had an outstanding balance of $140.6 million.

Since January 2013, the City Motor Fuel Tax Revenue Bonds have been downgraded by Moody's Investors Service and Fitch Ratings. Moody's downgraded the rating from Aa3 to A3 in March and from A3 to Baal in June. Fitch downgraded the rating from A- to BBB+ in June. Moody's and Fitch currently have a negative outlook on the ratings. In January 2013, the City entered into two swap overlay agreements (i.e., Constant Maturity Swap (CMS) reversal) associated with the General Obligation Series 2003B variable rate bonds with PNC Bank, N.A. (PNC) for a notional amount of $48.2 million and The Bank of New York Mellon (BNYM) for a notional amount of $144.6 million. The

92

CITY OF CHICAGO, ILLINOIS

NOTES TO BASIC FINANCIAL STATEMENTS

YEAR ENDED DECEMBER 31, 2012

agreement with PNC is effective March 1, 2014 through January 1, 2019 and the agreement with BNYM is effective November 1, 2014 through January 1, 2019. Under both agreements the City will pay 66.91 percent of 10 year LIBOR and receive 75 percent of one month LIBOR. Together with the existing underlying swaps on the bonds, in which the City pays 4.052 percent and receives 66.91 percent of 10 year LIBOR, the net effect is that the City will pay a fixed rate of 4.052 percent and receive 75 percent of one month LIBOR through January 1, 2019, after which time the City will receive 66.91 percent of 10 year LIBOR through expiration (January 1, 2034). The City received a total upfront payment of $7.5 million.

In February 2013, the City increased the Letter of Credit (LOC) support for the Chicago Midway International Airport Commercial Paper Program from $85.0 million to $150.0 million. The $65.0 million LOC is provided by PNC Bank. While the City has City Council authorization to issue up to an aggregate principal of $250.0 million of Chicago Midway International Airport Commercial Paper Notes (Midway CP Notes), the LOC support provides only for the issuance of up to $150.0 million aggregate principal amount of Midway CP Notes. The Midway CP Notes are authorized to be issued by the City for the financing and refinancing of certain projects (which may include payments on certain related bonds and notes) at Chicago Midway International Airport.

In March 2013, the City entered into a Revolving Credit Agreement with Bank of America, N.A., which allows the City to draw on the line of credit in an aggregate amount not to exceed $200.0 million. The City's repayment obligation under the line of credit is a general obligation of the City. The line of credit expires March 1, 2016.

In May 2013, the City issued $23.0 million aggregate principal amount of Midway CP Notes. The proceeds will be used to finance a portion of the costs of authorized airport projects.

In May 2013, the City extended the OPEB benefits for retirees under the OPEB Settlement Health Care Plans from June 30, 2013 until December 31, 2013, with a commitment to provide reduced subsidies after 2013, with a complete phase out in five years. The liability associated with six additional months of payments for the remaining Settlement Plan retirees is approximately $45 million. The liability associated with the five year phase out is unknown since the level of subsidy and plan provisions are not yet determined.

In June 2013, the City entered into a loan agreement with the United States Department of Transportation under the Transportation Infrastructure Finance and Innovation Act (TIFIA) program to complete the Wacker Drive Reconstruction Project. The loan amount of $98.66 million will fund the Chicago Riverwalk along the main branch of the Chicago River. The interest rate is 3.33% and the final maturity of the loan is 1/1/2048.

The 1996 Reauthorization Act, Title 49 United States Code §47134, authorized the Federal Aviation Administration ("FAA") to establish the Airport Privatization Pilot Program (the "Pilot Program"), pursuant to which the FAA is authorized to permit public airport sponsors to sell or lease an airport. The 2012 Reauthorization Act increased the number of airports that could participate in the program from five to ten. Only one of the ten airports can be a "large hub" airport (having enplanements that equal or exceed one percent of the enplanements at all U.S. commercial airports). On September 2006, the City applied to the FAA under the Pilot Program with respect to Chicago Midway International Airport ("Midway") with extensions requested periodically and most recently in April 2012. The City is currently pursuing bids for a lease of Midway under the provisions of the Pilot Program. The City is not under any obligation to accept any bids, and it is not possible at this time to predict whether or not the City will enter into a lease of Midway pursuant to the Pilot Program or when such a transaction might occur.

93

REQUIRED SUPPLEMENTARY INFORMATION CITY OF CHICAGO, ILLINOIS

SCHEDULE OF OTHER POSTEMPLOYMENT BENEFITS FUNDING PROGRESS Last Three Years (dollars are in thousands)

Actuarial Valuation Date

Actuarial

Value of Assets (a)

Actuarial Accrued Liability (AAL) Entry Age (b)

Unfunded Actuarial Accrued Liability (UAAL) (b-a)

Funded Ratio (a/b)

Covered Payroll (c)

Unfunded (Surplus) AAL as a Percentage of Covered

Payroll ((b-a)/c)

Municipal Employees'

1.             12/31/2010 $
2.             12/31/2011
3.             12/31/2012

Laborers'

1.       12/31/2010
2.             12/31/2011
3.             12/31/2012

Policemen's

1.             12/31/2010
2.             12/31/2011
3.             12/31/2012

Firemen's

1.             12/31/2010
2.             12/31/2011
3.             12/31/2012

City of Chicago

1.             12/31/2009
2.             12/31/2010
3.             12/31/2011

$ 223,564 163,242 162,083

41,361 38,328 38,654

164,796 165,955 168,811

48,222 46,980 46,206

533,387 390,611 470,952

223,564 163,242 162,083

41,361 38,328 38,654

164,796 165,955 168,811

48,222 46,980 46,206

533,387 390,611 470,952

% $ 1,541,388 1,605,993 1,590,794

199,863 195,238 198,790

1,048,084 1,034,404 1,015,171

400,404 425,385 418,965

%

2,546,961 2,475,080 2,518,735

14.50 %

10.16

10.19

19.63 19.44

16.04 16.63

11.04 11.03

20.94 %

15.78

18.70

94

COMBINING AND INDIVIDUAL FUND STATEMENTS

GENERAL FUND

Schedule A-1

CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012 (Amounts are in Thousands of Dollars)

Original Budget

Final Budget

Actual Amounts

Variance Positive (Negative)

1,425,260

LOCAL TAX REVENUE UTILITY TAX:

Gas            $ 116,706

Electric            101,431

Telecommunication            140,198

Commonwealth Edison            93,232

Infrastructure Maintenance      

Cable Television             23,739

Total Utility Tax            475,306

SALES TAX:

Home Rule Retailers' Occupation            250,748

TRANSPORTATION TAX:

Parking            118,183

Vehicle Fuel            47,088

Ground Transportation             9,000

Total Transportation Tax            174,271

TRANSACTION TAX:

Real Property            73,429

Personal Property Lease            113,105

Motor Vehicle Lessor             5,633

Total Transaction Tax            192,167

RECREATION TAX:

Amusement            88,264

Automatic Amusement            1,014

Liquor            30,868

Boat Mooring            1,361

Cigarette            18,700

Off Track Betting            820

Soft Drink            19,929

Total Recreation Tax            160,956

BUSINESS TAX:

Hotel            74,603

Employers' Expense            14,700

Foreign Fire Insurance             4,843

Total Business Tax             94,146

TOTAL LOCAL TAX REVENUE            1,347,594~

116,706 101,431 140,198 93,232

23,739

475,306

250,748

118,183 47,088 9,000

174,271

73,629 113,105 5,633

192,367

88,264 1,014

30,868 1,361

18,700 820

19,929

160,956

74,603 14,700 4,843

94,146

1,347,794

(3,416) 9,138 (2,418) 7

1,773

98,791    $ (17,915)

98,015 149,336 90,814 7

(12,831)

25,512

21,564

462,475

986 2,730 (97)

272,312

3,619

119,169 49,818 8,903

28,942 19,398 404

177,890

48,744

102,571 132,503 6,037

(421) (145) 1,752

(685) (126) 1,863

241,111

87,843 869

32,620 1,361

18,015 694

2,238

21,792

85,634 17,853 4,791

163,194

108,278

11,031 3,153 (52)

14,132

77,466

96

Schedule A-1 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012 (Amounts are in Thousands of Dollars)

Original Budget

Final Budget

Actual Amounts

Variance Positive (Negative)

INTERGOVERNMENTAL REVENUE

STATE INCOME TAX:

Income            $ 197,806

Personal Property Replacement             11,595

Total State Income Tax            209,401

STATE SALES TAX:

State Retailers' Occupation            284,421

STATE AUTO RENTAL TAX:

Municipal Auto Rental             3,354

FEDERAL/STATE GRANTS:

Grants             1,568

TOTAL INTERGOVERNMENTAL REVENUE            498,744

LOCAL NON-TAX REVENUE

INTERNAL SERVICE:

Water Fund            68,162

Chicago-O'Hare International Airport Fund            34,866

Vehicle Tax Fund            19,733

Chicago Midway International Airport Fund            10,046

Federal Funds            32,240

Sewer Fund            30,674

Emergency Communication Fund            71,933

Federal Funds - Pensions            57,831

Department of Housing & Economic Development.      1,854

Transportation            10,838

Department of Fleet and Facility Management            16,833

Miscellaneous - Planning, Purchasing, etc            7,388

Other             -_

Total Internal Service            362,398

LICENSES AND PERMITS:

Alcoholic Liquor Dealers' License            11,904

Building License             21,014

Building Permits *            33,074

Fines and Penalties            21,737

Other            47,381

Total Licenses and Permits            135,110

$ 197,806 11,595

209,401

284,421

3,354

1,568

498,744

68,162 34,866 19,733 10,046 32,240 30,674 71,933 57,831

1,854 10,838 16,833

7,388

362,398

11,904 21,014 33,074 21,737 47,381

135,110

245,193 $ 37,586

282,779

299,873

3,910

1,074

587,636

68,162 34,714 20,395 9,865 21,539 30,674 65,048 17,153

16,911 10,640 6,505 1,318

302,924

11,279 19,245 36,608 6,176 44,260

117,568

47,387 25,991

73,378

15,452

556

(494)

88,892

(152) 662 (181) (10,701)

(6,885) (40,678) (1,854) 6,073 (6,193) (883) 1,318

(59,474)

(625) (1,769) 3,534 (15,561) (3,121)

(17,542)

* Note: Amount includes Density Bonus revenue from Housing Revenue Fund of Budget $8,661 and Actual $7,711.

97

Schedule A-1 - Concluded CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012 (Amounts are in Thousands of Dollars)

Variance

Original      Final      Actual Positive

Budget      Budget      Amounts (Negative)

LOCAL NON-TAX REVENUE - Concluded FINES:

Fines, Forfeitures and Penalties            $    290,131    $     292,631    $     290,799    $ (1,832)

INVESTMENT INCOME:

Interest on Investments             4,200       4,200       5,439       1,239

CHARGES FOR SERVICES:

Inspection            12,399            12,399      10,731 (1,668)

Information            918               918      894 (24)

Safety            83,500            83,500      78,691 (4,809)

Reimbursement of Current Expense            9,091             9,091      13,100 4,009

Other            19,233      19,233      21,190      1,957

Total Charges for Services            125,141      125,141      124,606      (535)

MUNICIPAL UTILITIES:

Parking            8,667      8,667      8,415      (252)

Total Municipal Utilities             8,667      8,667      8,415      (252)

LEASES, RENTALS AND SALES:

Sale of Land and Buildings            2,000             2,000      3,678 1,678

Vacation of Streets and Alleys            1,200             1,200      1,270 70

Sale of Impounded Autos            142               142      49 (93)

Sale of Materials            1,683             1,683      3,518 1,835

Rentals and Leases             4,655       4,655       6,232      1,577

Total Leases, Rentals and Sales             9,680       9,680       14,747       5,067

MISCELLANEOUS:

Property Damage            160               160      8 (152)

Other            56,940      56,940      43,254      (13,686)

Total Miscellaneous            57,100      57,100      43,262      (13,838)

TOTAL LOCAL NON-TAX REVENUE            992,427      994,927      907,760      (87,167)

Issuance of Debt, Net of Original

Discount            50,000      50,000      55,000      5,000

Budgeted Prior Years' Surplus

and Reappropriations            143,549      143,549      72,347      (71,202)

Transfers In            72,000      72,000      31,617      (40,383)

Total Revenues            $  3,104,314    $   3,107,014    $   3,079,620    $ (27,394)

98

NONMAJOR GOVERNMENTAL FUNDS

 

Schedule B-1

CITY OF CHICAGO, ILLINOIS NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET December 31, 2012

(Amounts are in Thousands of Dollars)

Debt

Total      Service      Total      Total

Special      Fund      Capital      Nonmajor

Revenue      Special      Project      Governmental

Funds      Taxing Areas      Funds      Funds

ASSETS

Cash and Cash Equivalents                                               $    27,264      $    10,624      $    34,532      $ 72,420

Investments                                                                    151,566      5,152      67,218      223,936

Cash and Investments with Escrow Agent                                         -      98,713      -      98,713

Receivables (Net of Allowances):

Property Tax                                                                   339,412      98,458      -      437,870

Accounts                                                                        10,753      41      116      10,910

Due from Other Funds                                                            77,274      -      16,580      93,854

Due from Other Governments             25,992      -      25,048      51,040

Total Assets                                                           $  632,261      $   212,988      $   143,494      $ 988,743

LIABILITIES AND FUND BALANCE Liabilities:

Voucher Warrants Payable                                              $    57,643   $      -      $    19,128   $ 76,771

Bonds, Notes and Other Obligations Payable - Current ...      -      5,910              -      5,910

Accrued Interest             -      2,159              -      2,159

Due to Other Funds             167,864      -      37,409      205,273

Accrued and Other Liabilities             18,182      764             309      19,255

Deferred Revenue             283,839      80,415              -      364,254

Total Liabilities                                                             527,528         89,248         56,846      673,622

Fund Balance:

Restricted                                                                             4,291         123,740          87,352      215,383

Committed                                                                      100,442              -                -      100,442

Unassigned                   -      -      (704)       (704)

Total Fund Balance                                                       104,733        123,740         86,648      315,121

Total Liabilities and Fund Balance             $  632,261    $   212,988   $   143,494   $ 988,743

100

Schedule B-2

CITY OF CHICAGO, ILLINOIS NONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2012 (Amounts are in Thousands of Dollars)

Total Special Revenue

Funds

REVENUES

Property Tax             $ 350,408

Utility Tax        63,883

Sales Tax       

Transportation Tax        177,019

State Income Tax        108,506

Transaction Tax        40,846

Special Area Tax       

Other Taxes        18,816

Federal/State Grants       

Internal Service        16,361

Fines        15,711

Investment Income        2,814

Charges for Services        37,297

Miscellaneous              21,433

Total Revenues        853,094

244,116 1,600 6,424 49,919 68,224 77,738 458,951 924

EXPENDITURES Current:

General Government       

Health       

Public Safety       

Streets and Sanitation       

Transportation       

Cultural and Recreational       

Employee Pensions       

Other       

Capital Outlay       

Debt Service:

720

Principal Retirement       

Interest and Other Fiscal Charges             

Total Expenditures        908,616

Revenues Over (Under) Expenditures        (55,522)

Debt Service

Fund Special Taxing Areas

$   103,276 $

36 991

104,303

43,025 29,136

72,161

32,142

Total Capital Project Funds

776

1,333

2,109

90,429

90,429

(88,320)

Total Nonmajor Governmental Funds

453,684 63,883

177,019 108,506 40,846

18,816

16,361 15,711 3,626 37,297 23,757 959,506

244,116 1,600 6,424 49,919 68,224 77,738 458,951 924 90,429

43,025 29,856 1,071,206

(111,700)

101

Continued on following page.

Schedule B-2 - Concluded CITY OF CHICAGO, ILLINOIS NONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2012 (Amounts are in Thousands of Dollars)

Total Special Revenue

Funds

OTHER FINANCING SOURCES (USES)

Issuance of Debt             $ 70,541

Payment to Refunded Bond Escrow Agent       

Transfers In        7,965

Transfers Out              -

Total Other Financing Sources (Uses)        78,506

Debt Service

Fund Special Taxing Areas

47,322 (73,254) (25,932)

Total Capital Project

Funds

Total Nonmajor Governmental Funds

19,000 (9,482)

$     51,874      $ 122,415

61,392

74,287 (82,736)

113,966

Net Change in Fund Balances             22,984      6,210      (26,928) 2,266

Fund Balance-Beginning of Year             81,749      117,530      113,576 312,855

Fund Balance - End of Year             $   104,733     $   123,740     $    86,648     $ 315,121

102

NONMAJOR SPECIAL REVENUE FUNDS

Vehicle Tax Fund - Expenditures made in accordance with the policy established by the City Council in connection with st reet repairs and maintenance, as provided by sale of vehicle licenses.

Motor Fuel Tax and Project Fund - Expenditures for repair and maintenance of streets and pavements as provided by the City's distri butive share of State Motor Fuel Tax and Motor Fuel Tax Revenue Bonds.

Pension Fund - For the City's contribution to Empl oyees' Annuity and Benefit Funds as provided by tax levy and State Personal Property Replacement Tax revenue.

Public Building Commission Fund - For rentals of space and long-term lease obligations by the City as provided by tax levy.

Miscellaneous Fund - Expenditures for environmental management purposes related to liquid waste, inspection, operation of    emergency communication system and other obligations, as provided by revenues from fees collected for disposal of liquid waste, by fees on telephone billings and transfers in.

Chicago Public Library Fund - Expenditures for acquisition, repairs, construction and equipment of library buildings; also library maintenance and operations as provided by proceeds of debt, fines and miscellaneous revenues.

Special Events, Tourism and Festivals Fund - Expenditures for promoting tourism, conventions and other special ev ents projects in Chicago as pr ovided by the State from Municipal Hotel-Motel Tax receipts and by     proceeds from Jazz, Blues and Gospel Festivals and Taste of Chicago.

Health and Welfare Fund - For general assistance to be expended and administered by the Illinois Department of Public Aid as pr ovided by patient fees , City and State grants and proceeds of debt, and for neighborhood human in frastructure projects designed to improve the quality of life for citizens.

i

Schedule C-1

CITY OF CHICAGO, ILLINOIS NONMAJOR SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 2012

(Amounts are in Thousands of Dollars)

Motor

Fuel Tax

Vehicle and

Tax      Project Pension

ASSETS

Cash and Cash Equivalents             $      252     $        6,973     $ 2,905

Investments             71,892      7,938 1,448

Receivables (Net of Allowances):

Property Tax             -      - 339,412

Accounts             1,293      2,050 228

Due from Other Funds        56,528

Due from Other Governments              -      7,978 6,632

Total Assets             $     129,965      $      24,939      $ 350,625

LIABILITIES AND FUND BALANCE Liabilities:

Voucher Warrants Payable             $      10,796      $       7,056      $ 4,580

Due to Other Funds             95,795      3,808      55,574

Accrued and Other Liabilities             3,228      87      6,632

Deferred Revenue             -      -      283,839

Total Liabilities             109,819      10,951 350,625

Fund Balance (Deficit):

Restricted       

Committed             20,146 13,988

Total Fund Balance (Deficit)             20,146 13,988

Total Liabilities and Fund Balance             $     129,965     $      24,939     $ 350,625

104

Public Chicago Building Public Commission    Miscellaneous Library

Special Events, Tourism

and Festivals

Health

and Welfare

Intrafund Activity Eliminations

Total Nonmajor Special Revenue

Funds

1

214

$

$

5,268 50,482

6,604 4,502

5,047 15,304

27,264 151,566

5,976

5,977

6,883 4,859

142 13,646

157 2,080 5,406

5,000

(4,839)

339,412 10,753 77,274 25,992

67,492      $     14,002      $     18,749      $     25,351      $     (4,839)     $ 632,261

31

(4,839)

31

(4,839)

26,048 8,225 48

34,321

3,797 2,959 1,343

8,099

3,720 2,454 6,230

12,404

1,646 3,857 614

6,117

57,643 167,864

18,182 283,839 527,528

5,903

6,345

19,234

5,903

6,345

19,234

5,946 5,946

4,291 28,880

33,171

4,291 100,442

104,733

5,977

67,492

$     14,002      $     18,749      $     25,351      $     (4,839)     $ 632,261

105

Schedule C-2

CITY OF CHICAGO, ILLINOIS NONMAJOR SPECIAL REVENUE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (DEFICIT) Year Ended December 31, 2012 (Amounts are in Thousands of Dollars)

Motor

Fuel Tax

Vehicle and

Tax      Project Pension

Revenues:

Property Tax             $      -       $      -       $ 350,408

Utility Tax       

Transportation Tax             110,337 65,093

State Income Tax             -      - 108,506

Transaction Tax       

Other Taxes       

Internal Service        16,359

Fines        13,651

Investment Income             91      40 36

Charges for Services        15,750

Miscellaneous              1,271       -       -

Total Revenues             157,459      65,133 458,950

Expenditures: Current:

General Government             68,647 16,150

Health       

Public Safety        349

Streets and Sanitation             37,358 12,561

Transportation             45,283 22,841

Cultural and Recreational       

Employee Pensions             -      - 458,951

Other       

Debt Service:

Principal Retirement       

Interest and Other Fiscal Charges              -       22       -

Total Expenditures             151,637      51,574 458,951

Revenues Over (Under) Expenditures                   5,822            13,559            (1)_

Other Financing Sources (Uses):

Issuance of Debt        ...

Transfers In       

Transfers Out                   -_            -_            -

Total Other Financing Sources (Uses)                   -            -            -

Net Change in Fund Balances             5,822      13,559 (1)

Fund Balance (Deficit) - Beginning of Year              14,324       429       1_

Fund Balance (Deficit) - End of Year             $      20,146     $      13,988     $      -

106

Public Building Commission

$

1,526 1,526

Miscellaneous

63,883

40,846

1,865 10,086 11,250 127,930

Chicago Public Library

2,060 18 1

750 2,829

Special Events, Tourism

and Festivals

1,589

18,816 2

253 11,460 6,636 38,756

Health and Welfare

511

511

Total Nonmajor Special Revenue

Funds

350,408 63,883

177,019

108,506 40,846 18,816 16,361 15,711 2,814 37,297 21,433

853,094

737

31,916

49,617

106,882 1,600 5,475

100

6,313 100

28,121 924

13,471 500

244,116 1,600 6,424 49,919 68,224 77,738 458,951 924

698

737

114,057

82,231

35,458

13,971

720

908,616

789

13,873

(79,402)

3,298

(55,522)

(13,460)

70,541 7,965

70,541 7,965

78,506

78,506

789 5,157

$      5,946 $

13,873 19,298

33,171

(896) 6,799

5,903

3,298 3,047

(13,460)

       32,694

6,345      $      19,234

22,984 81,749

$ 104,733

107

Schedule C-3

CITY OF CHICAGO, ILLINOIS NONMAJOR SPECIAL REVENUE FUNDS

COMBINING SCHEDULE OF REVENUES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012 (Amounts are in Thousands of Dollars)

Transaction and Property Tax

FUND

Original and Final Budgeted Revenues:

Vehicle Tax        $

Motor Fuel Tax and Project       

Pension        335,680

Miscellaneous        29,372

Chicago Public Library       

Special Events, Tourism and Festivals       

Health and Welfare       

Special Taxing Areas              -

Total Original and Final Budgeted Revenues .. 365,052

Actual Revenues:

Vehicle Tax       

Motor Fuel Tax and Project       

Pension       

Miscellaneous        40,846

Chicago Public Library       

Special Events, Tourism and Festivals       

Health and Welfare       

Special Taxing Areas              -

Total Actual Revenues        40,846

Variance Positive (Negative)             $ (324,206)

Transportation Tax

State Taxes

Special Area and Utility Taxes

126,638

$ 116,585 52,682

17,269

72,433

143,907

72,433

1,349

170,616

108,506

63,883

18,816

110,337 65,093

127,322

63,883

1,589

177,019

$    (8,550)     $     6,403      $ (16,585)

108

Budgeted

Leases,                                       Prior Years'      Total

Rentals,                                       Surplus and      Nonmajor

Sales and                                       Operating      Special

Internal                     Investment   Charges for     Miscel-       Proceeds    Transfers In/      Revenue

Service        Fines        Income       Services      laneous        of Debt          Other      Funds

$   19,822     $ 13,500     $        -      $     7,180    $    1,155     $          -      $     1,716      $ 159,958

6,000                -                -                  -             6,689      65,371

462,318

13,879                -             4,412      120,096

2,300              30             750          3,150          70,540          10,770      87,540

5          11,090          6,500                -             1,135      37,348

11,165      11,165

      -       -       -       -      7,504       -       -       7,504

19,822        15,800      6,035      19,020        32,188      70,540      35,887 951,300

16,359        13,651              91      15,750      1,271      -      -      157,459

40                -      -      -      -      65,133

36                -      -      -      -      108,542

16,359          1,865      10,086      -      -      -      133,039

2,060              18                 1      750          70,541            7,965      81,335

2              -              253      11,460      6,636      -      -      38,756

511                -      -      -      -      511

16,361         32,070      2,814      37,297      8,657      70,541      7,965 584,775

$   (3,461)    $ 16,270     $   (3,221)    $   18,277    $ (23,531)    $      1_   $   (27,922)     $ (366,525)

109

Schedule C-4

CITY OF CHICAGO, ILLINOIS NONMAJOR SPECIAL REVENUE FUNDS

COMBINING SCHEDULE OF EXPENDITURES AND ENCUMBRANCES -BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012 (Amounts are in Thousands of Dollars)

Streets

General      Public      and

Government      Health      Safety Sanitation

FUND

Original and Final Budget:

Vehicle Tax                                                         $     70,379      $         -      $         -       $ 41,680

Motor Fuel Tax and Project                                             12,135      -      - 20,351

Pension        462,318

Miscellaneous                                                           115,332      -      4,764

Chicago Public Library        86,924

Special Taxing Area        7,504

Special Events, Tourism and Festivals                                7,572      -      100

Health and Welfare                                                    11,165            -_       -_       -_

Total Original and Final Budget                                    773,329            -      4,864 62,031

Actual Expenditures and Encumbrances:

Vehicle Tax             68,977      -      - 37,200

Motor Fuel Tax and Project             13,150      -      - 18,688

Pension             458,951

Miscellaneous             107,256      -      1,658

Chicago Public Library             82,524

Special Taxing Area             28

Special Events, Tourism and Festivals             6,956      -      100

Health and Welfare             9,303       -       -            -

Total Actual Expenditures and Encumbrances...        747,145       -_      1,758 55,888

Variance Positive (Negative)             $    26,184     $      -       $    3,106     $ 6,143

110

Total

Interest Nonmajor

Cultural      Operating      and Other Special

Trans-      and      Employee      Transfers      Fiscal Revenue

portation        Recreational        Pensions      Out      Charges Funds

166

166

47,899 32,885

80,784

450 29,676

30,126

159,958 65,371 462,318 120,096 87,540 7,504 37,348 11,165

951,300

45,203      -      -      -      - 151,380

22,533      .. 54,371

458,951 108,914

311      -      -      42 82,877

28

28,652                    -                      -                      - 35,708

                   -                         9,303

67,736      28,963       -       -       42 901,532

$       13,048      $        1,163      $      -       $      -       $      124      $ 49,768

111

NONMAJOR CAPITAL PROJECT FUNDS

Highway and Transportation Projects - Proceeds of debt used to improve highways and transportation systems.

Building Projects - Proceeds of debt used to finance exterior and interior construction and mechanical work on buildings used by City departments and the public.

Equipment Projects - Proceeds of debt used to purchase capital assets and maintain equipment and machinery for various City departments.

Chicago Public Building Commission - Accounts for assets held by Public Building Commission as trustee or agent during the interim financing period of certain City projects.

Schedule D-1

CITY OF CHICAGO, ILLINOIS NONMAJOR CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 2012

(Amounts are in Thousands of Dollars)

Total

Highway      Chicago      Nonmajor

and      Public      Capital

Transportation      Building     Equipment      Building      Project

Projects      Projects      Projects      Commission      Funds

ASSETS

Cash and Cash Equivalents                              $           21      $      69      $    34,442      $          -      $ 34,532

Investments                                                             -      29 ₍        67,189      -      67,218

Accounts Receivable (Net of Allowances)                            -      -              116      -      116

Due from Other Funds                                                   -      -           16,580      .  -      16,580

Due from Other Governments              -_            -_            -_      25,048      25,048

Total Assets                                            $           21      $      98      $   118,327      $    25,048      $ 143,494

LIABILITIES AND FUND BALANCE Liabilities:

Voucher Warrants Payable             $         122      $       1    $    19,005      $          -      $ 19,128

Due to Other Funds                                                   -      700      11,661          25,048      37,409

Accrued and Other Liabilities                   -_       -_       309            -_       309

Total Liabilities                   122          701      30,975          25,048      56,846

Fund Balance:

Restricted             -      -      87,352      - 87,352

Unassigned                   (101)        (603)            -      -      (704)

Total Fund Balance                   (101)        (603)      87,352      -      86,648

Total Liabilities and Fund Balance             $      21      $      98      $   118,327    $    25,048    $ 143,494

113

(

Schedule D-2

CITY OF CHICAGO, ILLINOIS NONMAJOR CAPITAL PROJECT FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2012 (Amounts are in Thousands of Dollars)

Chicago Public Building Commission

$

8,527

8,527

(8,527)

(8,527) 8,527

Equipment Projects

777 1,333 2,110

Highway and

Transportation      Building

Projects      Projects

$

REVENUES

Investment Income                                     $           (1)      $ -

Miscellaneous              -            -

Total Revenues              (1]_            -

81,790 81,790

EXPENDITURES

Capital Outlay              -_      112

(79,680)

Total Expenditures              -_      112

Revenues Over (Under) Expenditures              (1).      (112)

51,874 19,000 (6,000)

64,874

(14,806) 102,158

OTHER FINANCING SOURCES (USES)

Issuance of Debt       

Transfers In       

Transfers Out        (3,482)

Total Other Financing                   

Sources (Uses)              (3,482)            -_

Net Change in Fund Balance                                      (3,483)      (112)

Fund Balance - Beginning of Year              3,382      (491)

Fund Balance - End of Year                              $        (101)      $   (603)   $    87,352" $

Total Nonmajor Capital Project Funds

$

776 1,333

2,109

90,429

90,429

(88,320)

51,874 19,000 (9,482)

61,392"

(26,928) 113,576 $ 86,648

114

FIDUCIARY FUNDS

AGENCY FUNDS - Account for transactions for assets held by the City as agent for various entities.

PENSION TRUST FUNDS - Expenditures for employee pensions as provided by employee and employer contributions and investment earnings.

Schedule E-1

CITY OF CHICAGO, ILLINOIS FIDUCIARY FUNDS - AGENCY FUNDS

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES December 31, 2012

(Amounts are in Thousands of Dollars)

License and

Payroll      Payroll      Other      Special Special

Clearing       Deduction      Clearing        Deposit Assessment

Fund      Fund      Fund      Fund      Fund Total

ASSETS: Cash,

January 1,2012            $      $        28    $      3,862    $   12,723    $    9,395    $ 26,008

Additions            3,393,507      17,372      555,733      73,849      12,980 4,053,441

Deductions            3,376,070      5,596        499,278      58,760      21,597 3,961,301

Cash,

December 31,2012            17,437      11,804      60,317      27,812      778 118,148

Investments,

January 1,2012            238      7,303      60,722      20,157      3,515      91,935

Additions            183      5,596      65,145      27,017      12,690      110,631

Deductions             238      7,303      60,722      28,931      12,868      110,062

Investments,

December 31,2012             183      5,596      65,145      18,243      3,337 92,504

Cash and Investments with Escrow Agent,

January 1,2012            -      -      13,796             122      - 13,918

Additions            -      -      89,988             -      - 89,988

Deductions             -       -      93,860       -       - 93,860

Cash and Investments with Escrow Agent,

December 31,2012             -__      -      9,924      122      - 10,046

Accounts Receivables,

January 1,2012            19,405      13,915      144,651      60,468          1,063      239,502

Additions            1,060              -      102,574      53,285              -      156,919

Deductions            19,934      10,069      154,191      63,294            19      247,507

Accounts Receivables,

December 31,2012             531      3,846      93,034      50,459      1,044 148,914

116

Schedule E-1 - Concluded CITY OF CHICAGO, ILLINOIS FIDUCIARY FUNDS - AGENCY FUNDS

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES December 31, 2012

(Amounts are in Thousands of Dollars)

License and

Payroll      Payroll      Other      Special Special

Clearing       Deduction      Clearing        Deposit Assessment

Fund      Fund      Fund      Fund      Fund Total

ASSETS - Concluded: Total Assets,

January 1,2012            $     19,643    $   21,246    $   223,031    $   93,470    $   13,973    $ 371,363

Additions            3,394,750      22,968      813,440        154,151      25,670 4,410,979

Deductions            3,396,242      22,968      808,051      150,985      34,484 4,412,730

Total Assets,

December 31,2012            $     18,151    $   21,246    $   228,420    $   96,636    $    5,159    $ 369,612

LIABILITIES:

Voucher Warrants Payable,

January 1,2012            $     (7,076)   $        34    $    22,499    $     3,103    $      4    $ 18,564

Additions            7,595,807      -      276,107      16,300      31 7,888,245

Deductions            7,586,826      -      268,739      15,732       31 7,871,328

Voucher Warrants Payable,

December 31, 2012            1,905       34      29,867      3,671       4 35,481

Accrued Liabilities,

January 1,2012                       26,719      21,212      200,532      90,367      13,969      352,799

Additions            1,217,067             -      235,745      39,579      67      1,492,458

Deductions            1,227,540             -      237,726      36,980      8,880      1,511,126

Accrued Liabilities,

December 31,2012            16,246      21,212      198,551      92,966      5,156 334,131

Total Liabilities,

January 1,2012            19,643      21,246      223,031      93,470      13,973      371,363

Additions            8,812,874              -      511,852      55,879      98      9,380,703

Deductions            8,814,366              -      506,465      52,712      8,911      9,382,454

Total Liabilities,

December 31,2012            $     18,151     $   21,246    $   228,418    $   96,637    $    5,160    $ 369,612

117

Schedule E-2

CITY OF CHICAGO, ILLINOIS FIDUCIARY FUNDS - PENSION TRUST FUNDS COMBINING STATEMENT OF PLAN NET POSITION December 31, 2012

(Amounts are in Thousands of Dollars)

      Pension Trust Funds      

Municipal

Employees'       Laborers'       Policemen's       Firemen's Total

ASSETS

Cash and Cash Equivalents             $      959    $      43,052    $       93,900    $      47,497    $ 185,408

Receivables

Employer and Other             191,426           13,732           350,511            76,109 631,778

Interest and Dividends             14,184      2,131      7,138      8,198      31,651

Total Receivables             205,610      15,863      357,649      84,307      663,429

Due from City             20,508      1,787      22,874      10,405      55,574

Investments, at Fair Value Bonds and U.S. Government

Obligations             1,303,764          270,592           598,490          163,745 2,336,591

Stocks             2,367,716          755,218          1,579,337          641,119 5,343,390

Mortgages and Real Estate             450,296           39,160           125,923           49,383 664,762

Other             936,084      260,626      669,188      41,030 1,906,928

Total Investments             5,057,860        1,325,596      2,972,938      895,277 10,251,671

Invested Securities Lending

Collateral             539,981      169,287      255,434      161,363 1,126,065

Total Assets             5,824,918        1,555,585         3,702,795        1,198,849 12,282,147

Deferred Outflows              -_       301       -_      301

Total Assets and

Deferred Outflows             5,824,918        1,555,886         3,702,795        1,198,849 12,282,448

LIABILITIES

Voucher Warrants Payable             102,267           15,521           233,928             5,064 356,780

Securities Lending Collateral             539,981      169,287      255,434      161,363 1,126,065

Total Liabilities             642,248      184,808      489,362      166,427 1,482,845

Net Position Held in Trust for

Pension Benefits             $   5,182,670    $ 1,371,078    $    3,213,433    $ 1,032,422    $ 10,799,603

118

Schedule E-3

CITY OF CHICAGO, ILLINOIS

FIDUCIARY FUNDS - PENSION TRUST FUNDS

COMBINING STATEMENT OF CHANGES IN PLAN NET POSITION

Year Ended December 31, 2012

(Amounts are in Thousands of Dollars)

Pension Trust Funds

Laborers'

Policemen's

Firemen's

Total

Municipal Employees'

5,053,249

ADDITIONS

Contributions

Employees        $

City        _

Total Contributions        _

Investment Income Net Appreciation in Fair

Value of Investments       

Interest, Dividends and Other ..

Investment Expense              

Net Investment Income              

Securities Lending Transactions

Securities Lending Income       

Securities Lending Expense              

Net Securities Lending

Transactions              

Total Additions        _

DEDUCTIONS Benefits and Refunds of

Deductions       

Administrative and General              

Total Deductions              

Net Increase in Net Position              

Net Position Held in Trust for

Pension Benefits:

Beginning of Year              

End of Year        $

130,266 $ 158,381

16,559 $ 14,415

53,273 $ 84,144

295,990 464,168

288,647

30,974

137,417

303,120

95,892 $ 207,228

119,904 24,348 (6,312)

483,083 129,050 (25,374)

154,083 27,435 (8,909)

300,498 61,162 (9,236)

760,158

586,759

172,609

352,424

137,940

1,057,568 241,995 (49,831)

1,382 1,057

416 435

954 (238)

989 186

1,249,732

2,439

851

1,175

716

3,741 1,440

877,845

204,433

656,719

276,073

5,181

741,583 6,841

142,215 4,746

613,907 4,888

233,840 3,584

237,424 38,649

2,015,071

748,424

146,961

618,795

1,731,545 20,059

129,421

57,472

37,924

1,313,604

3,175,509

993,774

1,751,604 263,467

10,536,136

5,182,670    $  1,371,076    $    3,213,433    $  1,032,423    $ 10,799,603

119

 

PART III

STATISTICAL SECTION

(UNAUDITED)

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

Contents

Financial Trends

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

Revenue Capacity

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

Debt Capacity

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

Demographic and Economic Information

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

Operating Information

These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The City implemented GASB Statement No. 34 in 2002; schedules presenting government-wide information include information beginning that year.

121

Table 1

CITY OF CHICAGO

NET POSITION BY COMPONENT

Last Ten Fiscal Years Ended December 31, 2012

(Amounts are in Thousands of Dollars)

$    2,371,331       $    1,162,065      $ 1,323,799

$    3,134,889      $    2,711,506      $ 2,346,024

2003

Governmental Activities: Invested in capital assets,

net of related debt            $ 1,091,893

Restricted       1,216,595

Unrestricted (deficit)       (1,202,113)

Total governmental activities,

net position            $ 1,106,375

Business-type activities: Invested in capital assets,

net of related debt            $    1,560,539

Restricted            897,313

Unrestricted             (16,955)

Total business type activities,

net position            $ 2,440,897

Primary Government: Invested in capital assets,

net of related debt            $ 2,652,432

Restricted       2,113,908

Unrestricted       (1,219,068)

Total primary government,

net position            $ 3,547,272

2004

813,964 1,346,754 (1,397,160)

763,558

1,610,788 877,781 (117,238)

2,424,752 2,224,535 (1,514,398)

2005

$ 514,271 2,632,804 (1,597,634)

$ 1,549,441

$ 1,879,343 886,488 (1,603,766)

$ 2,393,614 3,519,292 (3,201,400)

2006

$ 574,393 2,451,160 (2,003,328)

$ 1,022,225

$ 1,940,069 971,669 (1,587,939)

$ 2,514,462 3,422,829 (3,591,267)

Note: The City began to report accrual information when it implemented GASB Statement No. 34 in fiscal year ended 2002.

(1) As a result of the implementation of GASB Statement No. 53, the results of 2009 were restated, retroactively.

122

2007

2008

2010

2011

2012

2009 (1)

570,665 2,980,207 (3,435,506)

494,930 2,842,149 (4,092,388)

251,103 3,735,128 (5,840,026)

(324,284) 3,611,533 (6,582,562)

(299,859) 1,596,408 (5,691,215)

(215,961) 1,908,516 (7,537,057)

115,366      $      (755,309)     $    (1,853,795)     $    (3,295,313)     $   (4,394,666)     $ (5,844,502)

2,168,833 881,908 (1,561,634)

2,323,394 779,894 (1,517,891)

$ 2,286,658 821,909 (1,541,136)

2,365,522 790,881 (1,431,859)

2,451,787 874,837 (1,541,515)

2,388,310 982,517 (1,354,572)

$ 1,489,107

$ 1,585,397

$ 1,567,431

$     1,724,544      $    1,785,109      $ 2,016,255

2,739,498 3,862,115 (4,997,140)

2,818,324 3,622,043 (5,610,279)

2,537,761 4,557,037 (7,381,162)

2,041,238 4,402,414 (8,014,421)

2,151,928 2,471,245 (7,232,730)

2,172,349 2,891,033 (8,891,629)

$     1,604,473 $

830,088

$      (286,364)     $    (1,570,769)     $   (2,609,557)     $ (3,828,247)

123

Table 2

CITY OF CHICAGO

CHANGES IN NET POSITION - ACCRUAL BASIS OF ACCOUNTING Last Ten Fiscal Years Ended December 31, 2012 (Amounts are in Thousands of Dollars)

2003      2004      2005      2006

Expenses

Governmental Activities:

General Government            $      1,738,548    $      1,642,072    $      1,842,353    $ 2,088,299

Public Safety            1,646,760            1,853,887      1,834,008      2,300,048

Employee Pensions            354,819              299,810      388,053

Streets and Sanitation            335,727              334,878      353,976      337,103

Transportation            304,580              275,536      285,598      292,679

Health            174,780              164,830      147,376      170,769

Cultural and Recreational            100,725              95,924      114,504      119,193

Other            10,771               10,581      9,892

Interest on Long-term Debt             301,181      352,119       335,373      371,523

Total Governmental Activities                            4,967,891      5,029,637      5,311,133      5,679,614

Business-type Activities:

Water            318,925              297,902      326,444      324,075

Sewer            144,420              135,013      132,727      130,471

Chicago Midway

International Airport            128,550              138,404      170,959      188,092

Chicago-O'Hare

International Airport            636,653             645,437      692,575      697,497

Chicago Skyway             37,544      42,373       16,915       12,752

Total Business-type Activities                            1,266,092      1,259,129      1,339,620      1,352,887

Total Primary Government            $      6,233,983    $      6,288,766    $     6,650,753    $ 7,032,501

NOTES:

Employee Pensions and Other have been reclassified by function.

The City began to report accrual information when it implemented GASB Statement No. 34 in fiscal year ended 2002.

124

2007      2008      2009      2010      2011 2012

2,452,145 2,435,437

2,384,586 2,434,842

2,364,754 2,521,151

2,557,681 2,824,028

2,734,419 2,689,471

2,751,944 2,910,160

367,222 333,401 175,577 128,003

371,112 381,090 170,838 140,065

297,156 351,101 166,914 129,996

235,863 373,437 142,352 126,939

245,898 410,802 151,152 102,808

228,622 383,510 123,055 146,283

381,504

386,125

404,218

474,226

460,660

6,264,037

6,217,197

6,664,518

6,808,776

7,004,234

385,305

6,277,090

350,181 136,961

371,441 158,292

382,502 169,982

399,347 184,888

416,289 194,838

417,499 195,911

211,082

217,609

206,613

224,465

218,172

225,867

751,351 13,555

1,463,130

803,404 12,359

1,563,105

811,710 11,775

1,582,582

834,487 11,312

1,654,499

879,281 10,930

1,719,510

955,276 10,621

1,805,174

$    7,740,220     $     7,827,142     $    7,799,779     $     8,319,017     $     8,528,286    $ 8,809,408

125

Table 2 - Continued CITY OF CHICAGO

CHANGES IN NET POSITION - ACCRUAL BASIS OF ACCOUNTING Last Ten Fiscal Years Ended December 31, 2012 (Amounts are in Thousands of Dollars)

Program Revenues

Governmental Activities: Licenses, Permits, Fines and Charges for Services:

General Government       $

Public Safety      

Streets and Sanitation      

Transportation      

Health      

Cultural and Recreational      

Other      

Operating Grants and Contributions ..

Capital Grants and Contributions             

Total Governmental Activities      

2003

350,643 $ 99,907 24,420 21,697 6,083 20,217

680,939 236,676

1,440,582

2004

362,973 $ 112,721

31,494

23,589

12,333

21,423

649,066 173,529

1,387,128

2005

363,196 $ 120,853 36,980 23,260 4,165 24,288 1

637,654 133,673

1,344,070

2006

385,082 151,835 36,058 10,224 5,529 23,127

659,279 142,705

1,413,839

317,455 142,373

78,973

481,957 39,770 179,626

327,514 144,988

85,608

442,569 41,191 210,915

344,267 143,522

92,228

532,877 1,896 228,467

330,439 136,437

105,570

545,916

273,320

Business-type Activities: Licenses, Permits, Fines and Charges for Services:

Water      

Sewer      

Chicago Midway

International Airport      

Chicago-O'Hare

International Airport      

Chicago Skyway      

Capital Grants and Contributions       _

1,240,154

1,343,257

1,252,785

1,391,682

Total Business-type Activities and

Program Revenues       _

2,680,736    $      2,639,913    $      2,687,327     $ 2,805,521

Total Primary Government

Program Revenues       _$

(3,527,309)   $     (3,642,509)    $     (3,967,063)    $ (4,265,775)

Net (Expenses)/Revenues

(25,938)

(6,344)

3,637

38,795

Governmental Activities       $

Business-type Activities      

Total Primary Government _

Net Expense      

$     (3,553,247)   $     (3,648,853)    $     (3,963,426)    $ (4,226,980)

126

2010      2011 2012

2007      2008 2009

$       422,363     $      440,023     $      382,617

155,529      129,518      158,490

41,467      40,578      30,990

13,262      14,071      24,895

2,795      3,157      2,504

24,412      25,725      22,375

610,974      624,356      611,301

137,613      139,949      115,261

1,408,415      1,417,377      1,348,433

$       370,028     $      388,886    $      452,892

150,710      211,157      199,572

38,092      37,291      42,138

21,640      28,613      39,343

8,332      7,796      1,751

21,635      7,201      14,454

674,677      788,812      748,256

114,871      282,008      172,456

1,399,985      1,751,764      1,670,862

334,377 138,681

107,253

652,763

268,331

370,244 160,005

124,985

684,282

224,823

410,213 175,163

122,301

624,443

211,174

458,395 198,229

149,056

702,603

246,309

454,221 203,349

157,371

679,402

257,438

576,287 253,912

201,749

857,114

83,219

1,501,405

1,543,294

1,754,592

1,751,781

1,972,281

1,564,339

$    2,909,820     $    2,981,716     $     2,891,727     $    3,154,577     $      3,503,545    $ 3,643,143

38,275

1,234

100,093

32,271

167,107

$    (4,868,675)    $    (4,846,660)    $    (4,868,764)    $    (5,264,533)    $    (5,057,012)    $ (5,333,372)

(39,288)

$    (4,830,400)    $    (4,845,426)    $    (4,908,052)    $    (5,164,440)    $    (5,024,741)    $ (5,166,265)

127

Table 2 - Concluded CITY OF CHICAGO

CHANGES IN NET POSITION - ACCRUAL BASIS OF ACCOUNTING Last Ten Fiscal Years Ended December 31, 2012 (Amounts are in Thousands of Dollars)

2003

General Revenues and Other Changes in Net Position

Governmental Activities: Taxes

Property Tax            $ 706,666

Utility Tax            512,567

Sales Tax            187,152

Transportation Tax            330,926

Transaction Tax            242,212

Special Area Tax            277,401

Other Taxes            166,671

Grants and Contributions Not

Restricted to Specific Programs            498,205

Unrestricted Investment Earnings            24,414

Special Item      

Transfers      

Miscellaneous             98,474

Total Governmental Activities             3,044,688

2004      2005 2006

$        693,411      $        696,085      $ 700,636

504,800      539,325      522,089

203,251      248,807      288,052

322,018      337,993      337,780

278,584      325,227      339,020

350,293      386,537      460,940

165,607      205,811      233,620

522,951      606,509      654,017

27,377      80,728      148,631

96,000      1,236,099      . 2,000

      135,400       89,825       51,774

3,299,692      4,752,946      3,738,559

Business-type Activities:

Investment Earnings       28,093

Miscellaneous            1,248

Special Item      

Transfers             -

Total Business-type Activities             29,341

Total Primary Government            $ 3,074,029

27,109      57,916      97,556

5,669      (34,720)      27,383

      (96,000)      (1,236,099)       (2,000)

      (63,222)      (1,212,903)      122,939

$      3,236,470      $      3,540,043      $ 3,861,498

Change in Net Position

Governmental Activities            $ (482,621)

Business-type Activities                  3,403

Total Primary Government            $ (479,218)

$        (342,817)    $        785,883     $ (527,216)

      (69,566)      (1,209,266) 161,734

$       (412,383)    $       (423,383)    $ (365,482)

(1) As a result of the implementation of GASB Statement No. 53, the results of 2009 were restated, retroactively.

128

2010      2011 2012

2007      2008      2009 (1)

$       732,415      $       799,878     $ 797,026

552,179      629,497      579,101

293,078      273,951      252,282

332,459      321,362      333,199

304,715      275,434      205,026

533,260      531,314      501,042

245,408      262,734      250,982

714,661      712,360      601,198

182,700      90,176      12,296

1,000

      69,941       79,279      238,126

3,961,816      3,975,985      3,770,278

$       796,928      $       934,870    $      896,246

561,936      564,236      548,682

260,364      310,626      294,417

335,235      331,441      373,544

227,772      250,486      281,957

477,241      457,192      274,617

259,325      269,258      294,280

654,043      598,498      692,232

100,269      64,294      92,050

1,000

149,902      175,758      135,511

3,823,015      3,957,659      3,883,536

57,451 37,605

12,381 8,941

6,831 50,190

25,197 38,842

48,517 34,687 (53,910) (1,000)

100,720 27,313

95,056

21,322

57,021

28,294

64,039

(1,000)

127,033

$    4,088,849     $    4,071,041     $     3,791,600     $     3,880,036     $     3,985,953    $ 3,947,575

$ (906,859) 165,308 $ (741,551)

$ (870,675)

      96,290

$ (774,385)

$ (1,098,486) (17,966) $ (1,116,452)

$ (1,441,518) 157,114 $ (1,284,404)

$ (1,099,353)

      60,565

$ (1,038,788)

$ (1,449,836) 231,146 $ (1,218,690)

129

Table 3

CITY OF CHICAGO, ILLINOIS

GENERAL GOVERNMENTAL REVENUES BY SOURCE (1) Last Ten Years Ended December 31, 2012 (Amounts are in Thousands of Dollars)

2003

2004

2005

Percent of Total

Percent of Total

Percent of Total

Revenues:

Property Tax            $ 729,458

Utility Tax            512,567

Sales Tax            414,425

Transportation Tax            330,926

State Income Tax            266,512

Transaction Tax            242,212

Special Area Tax            222,263

Other Taxes            166,671

Total Taxes            2,885,034

Federal/State Grants            965,885

Internal Service            324,745

Licenses and Permits            96,678

Fines            192,746

Investment Income            24,414

Charges for Services            120,376

Miscellaneous            90,375

Total Revenues            $ 4,700,253

15.5 10.9 8.8 7.0 5.7 5.2 4.7 3.5

651,950 504,800 441,579 322,018 282,676 278,584 284,127 165,607

14.6 10.6 9.8 6.7 7.0 6.4 6.8 4.1

14.0 10.9 9.5 6.9 6.1 6.0 6.1 3.6

% $

% $

66.0 15.9 5.4 2.4 4.2 1.6 2.6 1.9

61.3 20.6 6.9 2.1 4.1 0.5 2.6 1.9

3,347,605 806,472 273,516 120,904 210,850

80,728 131,139

97,093

63.1 18.3 6.3 2.3 4.4 0.6 3.2 1.8

739,419 539,325 499,228 337,993 354,022 325,227 346,580 205,811

2,931,341 852,050 293,339 104,627 202,536

27,377 150,879

81,645

100.0 %  $   4,643,794     100.0 %  $   5,068,307     100.0 %

2011

2010

2012

Percent of Total

Percent of Total

Percent of Total

Revenues:

Property Tax            $ 754,081

Utility Tax            561,936

Sales Tax            527,004

Transportation Tax            335,235

State Income Tax            385,668

Transaction Tax            227,772

Special Area Tax            486,526

Other Taxes            259,325

Total Taxes            3,537,547

Federal/State Grants            815,879

Internal Service            295,765

Licenses and Permits            96,240

Fines            272,667

Investment Income            103,725

Charges for Services            113,565

Miscellaneous             149,902

Total Revenues            $ 5,385,290

% $

14.0 10.4 9.8 6.2 7.2 4.2 9.0 4.8

16.2 9.4

10.2 6.4 6.7 4.8 6.3 5.0

888,531 564,236 563,156 331,441 344,674 250,486 552,894 269,258

15.2 9.6 9.6 5.7 5.9 4.3 9.4 4.5

% $

%

65.6 15.2 5.5 1.8 5.1 1.9 2.1 2.8

65.2 15.1 5.5 2.1 5.3 1.6 2.9 2.3

3,764,676 976,051 321,138 102,702 283,822 73,921 160,649 173,768

64.2 16.7 5.5 1.8 4.8 1.3 2.7 3.0

941,398 548,682 594,290 373,544 391,285 281,957 370,454 294,280

3,795,890 877,864 319,285 117,568 306,510 90,885 170,724 135,511

100.0 %  $   5,856,727     100.0 %  $   5,814,237     100.0 %

NOTE:

(1) Includes General, Special Revenue, Permanent, Debt Service and Capital Project Funds.

130

Percent      Percent      Percent Percent

2006      of Total      2007      of Total      2008        of Total      2009      of Total

% $

% $

665,990 522,089 559,156 337,780 380,111 339,020 374,342 233,620

3,412,108 823,504 275,191 117,689 221,819 148,631 155,215 51,774

12.8 10.0 10.7 6.5 7.3 6.5 7.2 4.5

65.5 15.8 5.3 2.3 4.3 2.8 3.0 1.0

661,707 552,179 570,927 332,459 433,446 304,715 488,193 245,408

3,589,034 781,967 303,827 148,172 240,277 182,700 151,369 79,956

12.1 10.1 10.4 6.1 7.9 5.6 8.9 4.5

65.6 14.3 5.5 2.7 4.4 3.3 2.8 1.4

729,823 629,497 548,571 321,362 435,393 275,434 552,709 262,734

3,755,523 796,911 329,643 114,707 274,443

90,176 144,161

79,279

13.1 11.3 9.9 5.8 7.8 4.9 9.9 4.7

67.4 14.2 5.9 2.1 4.9 1.6 2.6 1.3

806,010 579,101 503,952 333,199 347,814 205,026 487,909 250,982

3,513,993 753,269 306,095 100,458 267,891 31,520 124,557 238,126

15.1 10.9 9.4 6.2 6.5 3.8 9.1 4.7

65.7 14.1 5.8 1.9 5.0 0.6 2.4 4.5

5,335,909    100.0 %

$   5,205,931      100.0 %  $   5,477,302     100.0 % $ 5,584,843

REVENUE SOURCES

BOther

• Internal Service Earnings ■ Federal/State Grants
• Taxes

 

2003   2004   2005   2006   2007   2008   2009   2010   2011 2012

131

Table 4

CITY OF CHICAGO, ILLINOIS

GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION (1) Last Ten Years Ended December 31, 2012 (Amounts are in Thousands of Dollars)

Percent      Percent      Percent

2003      of Total      2004        of Total      2005      of Total

Expenditures: Current:

Public Safety                            $ 1,594,333      28.0%      $ 1,579,014      29.5%      $ 1,611,923       28.0 %

General Government                     1,474,984      25.9      1,358,469      25.4      1,620,307 28.2

Employee Pensions                         354,819      6.2      299,810        5.6      388,053 6.7

Streets and Sanitation                      356,512      6.2      353,020        6.6      339,760 5.9

Transportation                               421,665      7.4      308,535        5.8      221,377 3.8

Health                                           174,412      3.1      179,531         3.4      166,580 2.9

Cultural and Recreational                   81,637      1.4      77,661        1.4      95,153 1.7

Other                                            10,684      0.2      10,191        0.2      9,382 0.1

Capital Outlay                                   564,519      9.9      563,975       10.5      452,284 7.9

Debt Service:

Principal Retirement                        396,748      7.0      303,755        5.7      543,413 9.5

Interest and Other Fiscal

Charges                                    267,734      4.7      315,916      5.9      301,662      5.3

Total Expenditures                       $ 5,698,047      100.0%      $ 5,349,877     100.0%      $ 5,749,894     100.0 %

Debt Service as a Percentage of

Non Capital Expenditures (2)..      12.8%      12.7%      15.8 %

Percent      Percent      Percent

2010      of Total      2011        of Total      2012      of Total

Expenditures: Current:

Public Safety                            $ 1,909,728      30.1 %      $ 1,984,312       30.0%      $2,075,959       31.6 %

General Government                     1,786,450      28.2      2,057,524       31.1      1,806,541 27.5

Employee Pensions                         435,432      6.9      481,407        7.3      458,951 7.0

Streets and Sanitation                      232,426      3.7      236,591        3.6      228,100 3.5

Transportation                               297,339      4.7      507,589        7.7      514,303 7.8

Health                                           153,877      2.4      148,449        2.2      127,567 1.9

Cultural and Recreational                  104,297      1.6      90,905        1.4      102,384 1.6

Other                                             30,000      0.5      26,211         0.3      11,725 0.1

Capital Outlay                                  628,910      9.9      470,213        7.1      435,600 6.6

Debt Service:

Principal Retirement                        389,928      6.2      188,608        2.8      340,754 5.2

Interest and Other Fiscal

Charges                                      366,035      5.8      429,822      6.5      461,962      7.0

Total Expenditures                       $ 6,334,422      100.0%      $ 6,621,631      100.0%      $ 6,563,846     100.0 %

Debt Service as a Percentage of

Non Capital Expenditures (2) ..      12.6%      10.3%      13.7 %

NOTES:

1. Includes General, Special Revenue, Debt Service and Capital Project Funds.
2. Non Capital Expenditures include all expenditures except Capital Expenditures included in Capital Outlay with Transportation.

132

Percent      Percent      Percent Percent

2006        of Total        2007        of Total        2008        of Total        2009        of Total

$ 1,851,356 1,523,482 396,923 353,828 244,381 173,594 99,841 9,112 915,311

29.5 % 24.3

6.3

5.6

3.9

2.8

1.6

0.1 14.6

$ 1,880,599 1,650,679 371,649 377,485 267,476 195,254 108,527 4,427 602,433

30.8 % 27.1

6.1

6.1

4.4

3.2

1.8

0.1

9.9

$ 1,892,152 1,804,925 413,690 382,628 334,684 184,597 117,664 14,483 661,464

27.7 % 26.4

6.0

5.6

4.9

2.7

1.7

0.2

9.7

$ 1,913,711 1,663,990 430,915 300,131 261,948 177,812 107,604 7,676 619,273

30.5% 26.5

6.9

4.8

4.2

2.8

1.7

0.2

9.9

656,805

9.6

434,905

6.0

297,503

4.9

376,297

5.5

351,430

5.3

342,489

5.6

375,028 331,507

6.9 5.6

$6,274,363      100.0%   $ 6,098,521      100.0%   $ 6,839,389     100.0%   $6,269,395 100.0%

13.6%

11.4%

16.7%

12.9 %

EXPENDITURES BY FUNCTION

 

2003   2004   2005   2006   2007   2008   2009   2010   2011 2012

in c o

0 Capital Outlay

• Streets and Sanitation ■ Debt Service
• Other
• General Government
• Public Safety

133

Table 4A

CITY OF CHICAGO, ILLINOIS

CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years Ended December 31, 2012 (Amounts are in Thousands of Dollars) Modified Accrual Basis of Accounting

2003      2004      2005 2006

Excess of revenues over

(under) expenditures            $    (997,794)    $    (706,083)    $    (681,587)    $ (1,068,432)

Other Financing

Sources (Uses):

Issuance of Debt,

including premium/discount            $   1,322,827      $     720,357      $   1,871,896      $ 762,833

Payment to Refunded Bond

Escrow Agent            (173,725)      (143,143)      (1,186,065)      (276,607)

Transfers in            166,798      200,780      1,469,857      670,035

Transfers out            (166,798)      (104,780)      (233,758)      (668,035)

Total other financing sources                                      

(uses)            1,149,102      673,214      1,921,930 488,226

Net change in fund balances            $     151,308     $     (32,869)    $   1,240,343     $ (580,206)

134

2007

2008

2009

2010

2011

2012

$    (621,219)     $ (1,254,546)     $    (933,486)     $    (949,132)     $    (764,110)     $ (749,609)

1,212,326      $ 758,557

$   1,653,881      $     795,432      $   1,001,302      $ 1,434,390

(951,419) 332,016 (331,016)

(186,421) 293,448 (293,448)

(213,435) 2,253,459 (2,253,459)

(412,184) 647,407 (647,407)

(476,787) 572,211 (571,210)

(268,397) 178,750 (178,750)

736,540

490,160

1,022,206

73,074      $      (27,570)     $ (259,449)

703,462

609,011

787,867

82,243      $    (645,535)     $ (145,619)

135

Table 5

CITY OF CHICAGO, ILLINOIS FUND BALANCES - GOVERNMENTAL FUNDS Last Ten Fiscal Years Ended December 31, 2012 (Amounts Are in Thousands of Dollars) (Modified Accrual Basis of Accounting)

2003

2004

2005

2006

General Fund:

Reserved            $ 40,897

Unreserved             19,458

Total General Fund            60,355

General Fund Balance: (2)

Nonspendable       $

Assigned      

Unassigned             -

Total Fund Balance      

Other Governmental Funds:

Reserved            481,563

Unreserved, Reported in:

Special Revenue Funds            200,175

Capital Projects Funds            1,149,095

Debt Service Funds      

Permanent Fund (1)             -

Total All Other Governmental Funds            1,830,833

Total Governmental Funds            $ 1,891,188

Other Governmental Fund Balance: (2)

Restricted       $

Committed      

Assigned      

Unassigned             -

Total Fund Balance      

Total Governmental Funds       $

53,171 57,648

35,557 26,834

110,819

62,391

30,981 42,246

1,350,927

488,985

294,690 999,816

73,227

525,769 832,129

274,272

800,546

723,353 696,630

1,783,491

2,983,097

231,017

2,451,546

$    1,856,718      $   3,093,916      $ 2,513,937

NOTE:

1. This balance represents the Reserve Fund, Unreserved, Designated for Future Appropriations balance.
2. Beginning with 2011, GASB Statement No. 54 was implemented which changed the way fund balance is presented. All periods after 2011 will be presented in the same format.

136

2007      2008      2009      2010      2011 2012

39,673 $ 48,217 $ 52,048 $ 54,390

4,634      226      2,658 81,151

44,307      48,443      54,706 135,541

24,055 $ 20,885 143,549 177,000 167,929 33,417

335,533 231,302

1,191,674      461,830      1,418,399      1,419,714

816,551      959,424      (409,796)      (349,517)

906,603      372,063      321,251      534,013

(556,819)      (551,137)

191,391      660,333      422,319      138,724

2,549,400      1,902,513      1,752,173 1,742,934

$    2,593,707      $     1,950,956      $     1,806,879      $ 1,878,475

137

i

$     2,317,734      $ 2,332,911

961,246      882,127

2,550

(1,761,077)      (1,852,973)

1,520,453      1,362,065

$    1,855,986      $ 1,593,367

Table 6

CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Five Years Ended December 31, 2012 (Amounts are in Thousands of Dollars)

2008 (3)        2009 (3)        2010 (3)        2011 (3)        2012 (3)

Revenues:

Utility Tax            $    524,842   $    481,275   $    467,411   $    467,630   $ 462,475

Sales Tax            518,131      476,557      495,842      536,281      572,185

State Income Tax            378,545      251,820      282,011      236,521      282,779

Other Taxes            637,923      572,472      590,575      618,385      694,383

Federal/State Grants            2,347      1,714      1,735      1,294      1,074

Other Revenues (1)            813,983      777,788      773,278      921,849      907,760

Total Revenues            2,875,771      2,561,626      2,610,852      2,781,960      2,920,656

Expenditures: Current:

Public Safety            1,856,634      1,862,914      1,828,984      1,895,404      1,956,152

General Government            889,266      857,626      903,890      863,622      864,556

Other (2)            356,066      288,559      296,063      278,561      258,501

Debt Service            5,318      4,978      5,004      2,849      2,160

Total Expenditures            3,107,284      3,014,077      3,033,941      3,040,436      3,081,369

Revenues Under Expenditures            (231,513)      (452,451)      (423,089)      (258,476)      (160,713)

Other Financing Sources (Uses): Issuance of Debt, Net of Original

Discount/Including Premium            164,000      58,500      16,500      95,000      55,000

Transfers In            94,058      416,135      502,502      372,744      31,617

Transfers Out            (25,193)      (17,463)      (13,600)      (14,357)      (26,965)

Total Other Financing Sources (Uses)      232,865      457,172      505,402      453,387      59,652

Revenues and Other Financing Sources

Over (Under) Expenditures and

Other Financing Uses       1,352

Fund Balance - Beginning of Year       44,307

Change in Inventory             2,784

Fund Balance - End of Year            $ 48,443

4,721          82,313      194,911 (101,061)

48,443           54,706      135,541 336,327

1,542      (1,478)      5,875      (3,170)

$     54,706   $    135,541      $    336,327   $ 232,096

NOTES:

1. Includes Internal Service, Licenses and Permits, Fines, Investment Income, Charges for Services and Miscellaneous Revenues.
2. Includes Health, Streets and Sanitation, Transportation, Cultural and Recreational and Other Expenditures.
3. Source: City of Chicago Basic Financial Statements for years ended December 31, 2008-2012.

138

Table 7

CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Five Years Ended December 31, 2012 (Amounts are in Thousands of Dollars)

2008 (3)

2009 (3)

2011 (3)

2012(3)

2010 (3)

Revenues:

Property Tax            $ 326,334

Utility Tax            82,373

State Income Tax            56,848

Other Taxes            554,096

Federal/State Grants            794,564

Other Revenues (1)            120,401

Total Revenues            1,934,616

Expenditures: Current:

Public Safety            35,518

General Government            915,659

Employee Pensions            413,690

Other (2)            677,990

Capital Outlay            4,360

Debt Service            5,628

Total Expenditures            2,052,845

Revenues Under Expenditures            (118,229)

Other Financing Sources (Uses): Issuance of Debt, Net of Original

Discount/Including Premium            163,628

Transfers In            155,637

Transfers Out            (48,604)

Total Other Financing Sources (Uses)...      270,661

334,792 75,688 95,994 572,651 751,555 131,295

316,618 72,201 103,657 588,717 814,144 121,017

350,408 63,883 108,506 607,135 876,790 149,956

373,163 83,317 108,153 217,188 974,757 105,705

50,797 799,236 430,915 566,612 3,357 3,632

80,744 882,553 435,432 521,876 4,903 3,898

119,807 941,885 458,951 725,578 5,259.00 723

1,961,975      2,016,354      1,862,283 2,156,678

88,908 1,193,781 481,407 522,377 2,964 2,533

(95,525)

107,426

1,854,549      1,929,406      2,291,970 2,252,203

70,541 76,640 (56,622) 90,559

72,925 149,574 (380,543) (158,044)

86,948 (429,687)

88,018 94,424 (65,807)

116,635

72,925 185,358 (1,746,126) (1,487,843)

Revenues and Other Financing Sources

Over (Under) Expenditures and

Other Financing Uses       152,432

Fund Balance - Beginning of Year            883,097 _

Fund Balance - End of Year            $ 1,035,529 $

203,583 (344,888)

(587,731) (141,305)

(4,966) (729,036)

(1,380,417) 1,035,529

(344,888) $   (141,305) $   (729,036) $ (734,002)

NOTES:

1. Includes Internal Service, Fines, Investment Income, Charges for Services and Miscellaneous Revenues.
2. Includes Health, Streets and Sanitation, Transportation, Cultural and Recreational and Other Expenditures.
3. Source: Major and Nonmajor Special Revenue Funds for years ended December 31, 2008-2012.

139

Table 8

CITY OF CHICAGO, ILLINOIS DEBT SERVICE FUNDS

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Five Years Ended December 31, 2012 (Amounts are in Thousands of Dollars)

2008 (2)      2009 (2)        2010(2)        2011 (2)        2012 (2)

Revenues:

Property Tax                                          $    403,489      $    471,218      $   437,463      $   515,368      $ 590,990

Utility Tax            22,282      22,138      22,324      13,289      22,324

Sales Tax            30,440      27,395      31,162      26,875      22,105

Other Taxes            220,220      131,993      129,566      146,126      18,717

Other Revenues (1)            6,562      38,720      61,004      44,101      53,340

Total Revenues            682,993      691,464      681,519      745,759      707,476

Expenditures:

Debt Service            1,022,156        777,725        747,061        613,048 799,833

Total Expenditures            1,022,156      777,725        747,061      613,048 799,833

Revenues Over (Under) Expenditures..      (339,163)        (86,261)       (65,542)       132,711 (92,357)

Other Financing Sources (Uses): Issuance of Debt, Net of Original

Discount/Including Premium            405,311

Payment to Refunded Bond Escrow Agent      (186,421)

Transfers In            33,186

Transfers Out            (141,498)

Total Other Financing Sources (Uses)...      110,578

340,324        560,524      580,015      337,410

(213,435)       (412,184)      (476,787)      (268,397)

684,277          44,185      47,134      47,322

(81,291)       (110,049)      (176,285)      (83,359)

729,875      82,476      (25,923)      32,976

Revenues and Other Financing Sources Over (Under) Expenditures and

Other Financing Uses            (228,585)        643,614      16,934        106,788 (59,381)

Fund Balance - Beginning of Year            (8,911)       (237,496)       406,118        423,052 529,840

Fund Balance - End of Year            $   (237,496) $    406,118   $   423,052   $   529,840   $ 470,459

NOTES:

1. Includes Investment Income and Miscellaneous Revenues.
2. Source: Major (Bond, Note Redemption and Interest) and Nonmajor (Special Taxing Areas) Debt Service Funds for years ended December 31, 2008-2012.

140

Table 9

CITY OF CHICAGO, ILLINOIS CAPITAL PROJECT FUNDS

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Five Years Ended December 31, 2012 (Amounts are in Thousands of Dollars)

2008 (2)

2009 (2)        2010 (2)        2011 (2)        2012 (2)

Revenues:

Other Revenues (1)            $ 44,464

Total Revenues       44,464

$      18,240   $     43,135   $     16,243   $     11,343

18,240      43,135      16,243      11,343

Expenditures:

Capital Outlay       657,104

Total Expenditures       657,104

615,916         624,007      467,249 430,341

615,916      624,007      467,249 430,341

Revenues Under Expenditures            (612,640)

Other Financing Sources (Uses): Issuance of Debt, Net of Original

Discount/Including Premium            62,493

Transfers In            10,567

Transfers Out            (96)

Total Other Financing Sources (Uses)      72,964

(597,676)       (580,872)       (451,006) (418,998)

529,553         769,348         464,386      295,606

16,334            6,296            2,759      22,843

(3,734)            (99)_       (25)_      (11,804)

542,153         775,545         467,120      306,645

Revenues and Other Financing Sources Over (Under) Expenditures and

Other Financing Uses       (539,676)

Fund Balance - Beginning of Year       983,823

(55,523)        194,673      16,114 (112,353)

444,147      388,624      583,297 599,411

Fund Balance - End of Year            $    444,147   $    388,624   $    583,297   $    599,411   $ 487,058

NOTES:

1. Includes Investment Income, Charges for Services and Miscellaneous Revenues.
2. Source: Major (Community Development and Improvement Projects) and Nonmajor (Capital Projects Funds) for years ended December 31, 2008-2012.

141

Table 10

CITY OF CHICAGO, ILLINOIS PROPERTY TAX LEVIES BY FUND (1) Five Years Ended December 31, 2012 (Amounts are in Thousands of Dollars)

Percent

2008      2009 Change

Note Redemption and Interest (2)      

Bond Redemption and Interest      

Policemen's Annuity and Benefit (3)      

Municipal Employees' Annuity and Benefit (3)

Firemen's Annuity and Benefit (3)      

Laborers' and Retirement Board Employees'

Annuity and Benefit (3)      

Total      

$    73,363      $    73,363      0.00 %

414,853      409,512 (1.29)

139,640      141,741 1.50

131,344      130,026 (1.00)

65,426      66,140 1.09

9,526      13,327            39.90

$   834,152      $   834,109 (0.01)

NOTES:

1. See Table 11 - PROPERTY LEVIES, COLLECTIONS AND ESTIMATED ALLOWANCE FOR UNCOLLECTIBLE TAXES 2003 - 2012. Does not include the levy for the School Building and Improvement Fund which is accounted for in an agency fund.
2. Includes Corporate, Chicago Public Library Maintenance and Operations, Chicago Public Library Building and Sites and City Relief Funds.
3. For information regarding the City's unfunded (assets in excess of) pension benefit obligations under its Pensions Plans, see the individual Pension Plans Financial Statements.
4. Estimated; actual was not available from the Cook County Clerk's Office at time of publication.
5. Source: Cook County Clerk's Office.

142

Percent      Percent Percent

2010      Change      2011      Change      2012 Change

$     73,377                   0.02 %      $      73,377                    -     %      $     73,481      0.14 %

409,979                  0.11      411,905                  0.47      411,457 (0.11)

140,165                 (1.11)      143,785                  2.58      143,865 0.06

132,531                 1.93      126,997                (4.18)      129,138 1.69

64,323                 (2.75)      66,125                  2.80      65,461 (1.00)

13,714            2.90      11,759      (14.26)      11,202            (4.74)

$   834,089      -      $    833,948      (0.02)      $   834,604 (4) 0.08

143

Table 11

CITY OF CHICAGO, ILLINOIS

PROPERTY LEVIES, COLLECTIONS AND

ESTIMATED ALLOWANCE FOR UNCOLLECTIBLE TAXES

Last Ten Years Ended December 31, 2012

(Amounts are in Thousands of Dollars)

Tax Year(l)

Total Tax Levy for Fiscal

Year (2)

Collected Within Fiscal Year

Percentage of

Levy

Amount

Collections in

Subsequent Years

Total Collections to Date

Percentage of

Levy

Amount

Estimated Allowance for

Uncollectible Taxes

Net Outstanding

Taxes Receivable

$

(3) (3) (3) (3)

1.              $ 719,695
2.             719,780
3.             718,071
4.             719,230
5.             749,351
6.             834,152 (3)
7.             834,109 (3)
8.             834,089 (3)
9.             833,948 (3)
10.             834,604 (3), (4)

7,383 6,224 61,214 15,321 36,695 114,709 32,016

701,597 700,817 691,880 727,329 813,217 815,288 822,157 800,582

97.47 97.60 96.20 97.06 97.49 97.74 98.57 96.00 N/A

96.45 96.73 87.69 95.02 93.09 83.99 94.73 96.00 N/A

$     674,325    9370%  $      23,678   $    698,003    96.99 % $

694,214 694,593 630,666 712,008 776,522 700,579 790,141 800,582

21,692 18,183 17,254 27,350 22,022 20,935 18,482 11,693 25,005 33,384

339 239 8,361 801,220

Total Net Outstanding Taxes Receivable            $ 810,159

NOTES:

1. Taxes for each year become due and payable in the following year. For example, taxes for the 2011 tax levy become due and payable in 2013.
2. Does not include levy for Special Service Areas and Tax Increment Projects.
3. Does not include the levy for the School Building and Improvement Fund which is accounted for in an agency fund.
4. Estimate; actual was not available from Cook County Clerk's Office at time of publication.

144

Table 12

CITY OF CHICAGO, ILLINOIS

TOP TEN ESTIMATED EQUALIZED ASSESSED VALUATION (EAV) Current Year and Nine Years Ago (2) (Amounts are in Thousands of Dollars)

Percent- Percent-tage tage of of

2011      Total      2002 Total

Property      EAV        Rank     EAV      EAV        Rank EAV

Willis Tower (4)            $   445,590      1      0.59 %   $   417,723      1 0.93%

AON Building (3)            302,125        2     0.40      283,924        2 0.63

Prudential Plaza            272,345        3     0.36      230,947        4 0.51

Northwestern Memorial Hospital            243,610        4 0.32

Water Tower Place            207,942        5 0.28

Health Care service Corporation Blue Cross ... 206,344 6 0.27

Chase Tower            204,229        7 0.27

AT81T Corporate Center 1             197,943        8     0.26      196,455        6 0.44

Three First National Plaza            197,182        9 0.26

300 N. LaSalle            190,006       10 0.25

Chicago Mercantile Exchange            260,304        3 0.58

Bank One Plaza            230,071      5 0.51

Lakeside Tech Center            160,564        7 0.36

Citicorp Plaza            155,795        8 0.35

Northwestern Atrium            150,438        9 0.33

Hyatt Regency Hotel            148,240       10 0.32

Totals            $ 2,467,316      3.26 %   $ 2,234,461      4.96 %

NOTES:

1. Source: Cook County Treasurer's Office, Cook County Assessor's Office.
2. 2012 information not available at time of publication.
3. AON Building formerly known as AMOCO Building.
4. Willis Tower formerly known as Sears Tower.

145

Table 13

CITY OF CHICAGO, ILLINOIS

ASSESSED AND ESTIMATED FAIR MARKET VALUE OF ALL TAXABLE PROPERTY Last Ten Years

(Amounts are in Thousands of Dollars)

Assessed Values (1)

Tax

Year      Class 2 (2)      Class 3 (3)      Class 5 (4)      Other (5) Total

2002      $     9,221,622     $     1,865,646     $     8,878,142     $       349,372     $ 20,314,782

1. 12,677,199      2,233,572      10,303,732      487,680      25,702,183
2. 12,988,216      1,883,048      10,401,429      465,462      25,738,155
3. 13,420,538      1,842,613      10,502,698      462,099      26,227,948
4. 18,521,873      2,006,898      12,157,149      688,868      33,374,788
5. 18,937,256      1,768,927      12,239,086      678,196      33,623,465
6. 19,339,574      1,602,768      12,359,537      693,239      33,995,117
7. 18,311,981      1,812,850      10,720,244      592,364      31,437,439
8. 18,074,177      1,416,863      10,467,682      606,941      30,565,663

2011      (9)      17,932,671      1,116,175      10,456,103      588,672 30,093,621

NOTES:

1. Source: Cook County Assessor's Office. Excludes portion of City in DuPage County.
2. Residential, 6 units and under.
3. Residential, 7 units and over and mixed use.
4. Industrial/Commercial.
5. Vacant, not-for-profit and industrial/commercial incentive classes. Includes railroad and farm property.
6. Source: Illinois Department of Revenue.
7. Source: Cook County Clerk's Office. Excludes portion of City in DuPage County and net of exemptions. Calculations also include assessment of pollution control facilities.
8. Source: The Civic Federation. Excludes railroad property and portion of City in DuPage County.

(9)      2012 information not available at time of publication.

(10) 2011 information not available at time of publication.

146

$

State Equalization Factor (6)

2.4689 2.4598 2.5757 2.7320 2.7080 2.8439 2.9786 3.3701 3.3000 2.9706

Total Equalized Assessed Value (7)

45,330,892 53,168,632 55,277,096 59,304,530 69,517,264 73,645,316 80,977,543 84,685,258 82,087,170 75,122,914

Total Direct Tax Rate

1.591 1.380 1.302 1.243 1.062 1.044 1.030 0.986 1.020 1.110

Total Estimated Fair Market Value (8)

201,938,231 223,572,427 262,080,627 286,354,518 329,770,733 320,503,503 310,888,609 280,288,730 231,986,397 N/A (10)

Ratio of Total Equalized

Assessed to Total Estimated Fair

Market Value (9)

22.45 % 23.78 21.09 20.71 21.08 22.98 26.05 30.21 35.38 N/A (10)

EQUALIZED ASSESSED VALUE

 

2002   2003   2004  2005   2006   2007   2008   2009   2010 2011

147

Table 14

CITY OF CHICAGO, ILLINOIS

PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS Per $100 OF EQUALIZED ASSESSED VALUATION Last Ten Years

City

Tax Year

Chicago

School Building and Improvement Fund

Chicago School Finance Authority

Board of

Education

Community College District No. 508

(1)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

1.591 1.380 1.302 1.243 1.062 1.044 1.030 0.986 1.016 1.110

0.117 0.112 1.116 0.119

0.177 0.151 0.177 0.127 0.118 0.091

3.562 3.142 3.104 3.026 2.697 2.583 2.472 2.366 2.581 2.875

0.280 0.246 0.242 0.234 0.205 0.159 0.156 0.150 0.151 0.165

NOTE:

(1) 2012 information not available from the Cook County Clerk's Office at time of publication.

Table 15

CITY OF CHICAGO, ILLINOIS PROPERTY TAX RATES - CITY OF CHICAGO Per $100 OF EQUALIZED ASSESSED VALUATION Last Ten Years

(Amounts for Tax Extension are in Thousands of Dollars)

$

Tax Year

2002 2003 2004 2005 2006 2007 2008 2009 2010

2011 (1)

Total City Tax Extension

(2) (2) (2) (2) (2) (2) (2) (2) (2)

707,181 719,695 719,780 718,071 719,230 749,351 834,152 834,109 834,089 833,948

Bond, Note Redemption and Interest

0.804928 0.713397 0.647396 0.606566 0.519706 0.550055 0.508488 0.478955 0.494109 0.542475

Chicago Public Library Bond, Note Redemption and Interest

0.138133 0.117772 0.113280 0.090041 0.049968 0.039514 0.094354 0.091851 0.094665 0.103443

Policemen's

Annuity and

Benefit      

0.271463 0.230466 0.216752 0.231467 0.194953 0.191548 0.172426 0.167552 0.170734 0.191381

NOTES:

1. 2012 information not available from the Cook County Clerk's Office at time of publication.
2. Does not include the levy for the School Building and Improvement Fund which is accounted for in an agency fund.

148

Metropolitan      Forest

Chicago                    Water      Preserve

Park                  Reclamation      District of Cook

District       District            Cook County               County Total

$      0.545 $

0.464 0.455 0.443 0.379 0.355 0.323 0.309 0.319 0.346

0.371 0.361 0.347 0.315 0.284 0.263 0.252 0.261 0.274 0.320

$ 0.061 0.059 0.060 0.060 0.057 0.053 0.051 0.049 0.051 0.058

$ 0.690 0.630 0.593 0.533 0.500 0.446 0.415 0.394 0.423 0.462

$ 7.277 6.433 6.280 5.981 5.302 4.994 4.816 4.627 5.931 5.455

Laborers' and

Municipal      Retirement Board

Employees'      Firemen's      Employees' Public

Annuity and      Annuity and      Annuity and Building

Benefit      Benefit      Benefit      Commission Total

$       0.259848       $      0.116628       $      -                 $      -             $      1.591

0.218316      0.100049      -      -      1.380

0.229048      0.095524      -      -      1.302

0.231683      0.083243      -      -      1.243

0.197399      0.099974      -      -      1.062

0.174302      0.088581      -      -      1.044

0.162182      0.080787      0.011763      -      1.030

0.153704      0.078184      0.015754      -      0.986

0.161435      0.078352      0.016705      -      1.016

0.169036      0.088014      0.015651      -      1.110

149

Table 16

CITY OF CHICAGO, ILLINOIS

RATIO OF GENERAL NET BONDED DEBT TO EQUALIZED ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Last Ten Years

(Amounts are in Thousands of Dollars Except Where Noted)

Tax Year

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

NOTES:

Population (1)

2,896,016 2,896,016 2,896,016 2,896,016 2,896,016 2,896,016 2,896,016 2,695,598 2,695,598 2,695,598

Equalized Assessed Value (2)

$

53,168,632 55,277,096 59,304,530 69,517,264 73,651,158 80,977,543 84,685,258 82,087,170 75,122,914 N/A (4)

G. O. Bonds

4,555,253 4,983,428 5,077,434 5,394,802 5,759,573 5,687,447 6,051,947 6,536,596 6,997,975 7,244,917

G. O. Notes & Commercial Paper

5 378,733 226,427 112,495 72,530 77,998 259,097 230,263 268,526 198,132 166,460

General Obligation Certificates and Other

$

367,027 362,592 344,426 322,145 458,654 362,140 439,670 574,755 554,015 528,305

2. Source: U.S. Census Bureau.
3. Source: Cook County Clerk's Office.
4. Gross Bonded Debt includes bonds, notes and capitalized lease obligations that are noncurrent.
5. N/A means not available at time of publication.

(5)      Amounts are in dollars.

Table 17

CITY OF CHICAGO, ILLINOIS

RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL OBLIGATION DEBT TO TOTAL GOVERNMENTAL EXPENDITURES

Last Ten Years (Amounts are in Thousands of Dollars)      

Year      General Obligation      Ratio of Debt Service

Ended      Debt Service      Governmental      Expenditures to

December 31,                       Principal           Interest      Expenditures      Expenditures      Governmental Expenditures

2003                                 $ 331,432       $   213,063      $        544,495      $   5,698,047      9.6 %

1.                                    240,327            247,197      487,524      5,349,877      9.1
2.                                    223,778            242,286      466,064      5,749,894      8.1
3.                                    201,865            273,190      475,055      6,274,363      7.6
4.                                    143,575            267,698      411,273      6,098,521      6.7
5.                                    429,066            302,105      731,171      6,839,389      10.7
6.                                    380,946            298,057      679,003      6,269,395      10.8
7.                                    336,378            319,423      655,801      6,334,422      10.4
8.                                     129,303            369,880      499,183      6,621,207      7.5
9.                                    305,879            475,906      781,785      6,563,846      11.9

150

$

Total Gross Bonded Debt (3)

5,301,013 5,572,447 5,534,355 5,789,477 6,296,225 6,308,684 6,721,880 7,379,877 7,750,122 7,939,682

Less Reserve for Debt Service

$ 183,347 135,795 133,011 102,951 70,543 10,080 50,431 58,822 249,355 105,582

Net Bonded Debt

5,117,666 5,436,652 5,401,344 5,686,526 6,225,682 6,298,604 6,671,449 7,321,055 7,500,767 7,834,100

Ratio of Net Bonded Debt to Equalized Assessed Value

9.63 % 9.84 9.11 8.18 8.45 7.78 7.88 8.92 9.98 N/A (4)

Net Bonded Debt Per Capita (5)

1,767.14 1,877.29 1,865.09 1,963.57 2,149.74 2,174.92 2,303.66 2,715.93 2,782.60 2,906.26

Table 18

CITY OF CHICAGO, ILLINOIS

COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT December 31, 2012

City of Chicago Direct Debt

Net Direct Long-term Debt(1)

(Amounts are in Thousands of Dollars)

Percentage of Net Overlapping Debt Bonded Debt (2) Applicable

City of Chicago G. O. Bonds and Notes

(Includes Commercial Paper)                                   $ 7,939,682     $   7,939,682      100.00 %      $ 7,939,682

Board of Education            6,365,573         100.00 6,365,573

Chicago School Finance Authority            - 100.00

Chicago Park District            874,710         100 00 874,710

City Colleges of Chicago            - 100.00

Cook County            3,709,530          48.08 1,783,542

Cook County Forest Preserve District            187,950          49.40 92,847

Metropolitan Water Reclamation

District of Greater Chicago            2,515,375          50.40 1,267,749

Total Overlapping Debt            13,653,138 10,384,421

Net Direct and Overlapping Long-term Debt            $ 21,592,820                            $ 18,324,103

NOTES:

1. Source. Amount of Net Direct Debt was obtained from each of the respective taxing bodies.
2. Cook County Clerk's Office

151

Table 19

CITY OF CHICAGO, ILLINOIS DEBT STATISTICS Last Ten Years

(Amounts are in Thousands of Dollars Except Where Noted)

2003      2004      2005 2006

Direct Debt      $     4,798,541       $     5,113,565      $     5,123,729      $ 5,422,232

Overlapping Debt      7,150,282      7,429,853      7,574,950 7,750,883

Total Debt      $   11,948,823      $   12,543,418      $    12,698,679      $ 13,173,115

Equalized

Assessed Valuation (1)      $   53,168,632      $   55,277,096      $    59,304,530      $ 69,517,264

Direct Debt Burden (2)      10.59%      9.62%      9.27%      9.14%

Total Debt Burden (2)      26.36%      23.59%      22.97%      22.21%

Estimated Fair Market

Value (FMV) (5)      $ 223,572,427      $ 262,080,627      $  286,354,518      $ 329,770,733

% of Direct Debt to FMV      2.15%      1.95%      1.79%      1.64%

% of Total Direct Debt to FMV      5.34%      4.79%      4.43%      3.99%

Population (3)      2,896,016      2,896,016      2,896,016 2,896,016

Direct Debt Per Capita (4)      $      1,656.95      $      1,765.72      $       1,769.23      $ 1,872.31

Total Debt Per Capita (4)      4,125.95      4,331.27      4,384.88 4,548.70

NOTES:

1. Source: Cook County Clerk's Office. Excludes portion of City in DuPage County and exemptions.
2. Due to the one-year lag in the Equalized Assessed Valuation, debt burden measures are computed utilizing the prior year's Assessed Valuation. The Assessed Valuation for 2002 is $45,330,892.
3. Source: U.S. Census Bureau.
4. Amounts are in dollars.
5. Source: The Civic Federation.
6. N/A means not available at time of publication.

152

2007      2008      2009      2010      2011 2012

$     5,805,921    $     6,126,295    $     6,866,270    $     7,328,452    $     7,628,222    $ 7,939,682

7,904,184      7,529,359      8,539,070      9,158,243      9,877,084 10,384,421

$    13,710,105    $   13,655,654    $    15,405,340    $    16,486,695    $    17,505,306    $ 18,324,103

73,645,316 8.35% 19.72%

80,977,543 8.32% 18.54%

84,685,258 8.48% 19.02%

82,087,170 8.65% 19.47%

75,122,914 9.29% 21.33%

N/A (6) 9.67% 22.32%

320,503,503 1.81% 4.28%

310,888,609 1.97% 4.39%

$ 280,288,730 2.45% 5.50%

231,986,397 3.16% 7.11%

N/A (6) N/A (6) N/A (6)

N/A (6) N/A (6) N/A (6)

2,896,016 2,004.80 4,734.13

2,896,016 2,115.42 4,715.32

2,896,016 2,370.94 5,319.49

2,695,598 2,718.67 6,116.15

2,695,598 2,829.88 6,494.03

2,695,598 2,945.43 6,797.79

153

Table 20

CITY OF CHICAGO, ILLINOIS

REVENUE BOND COVERAGE

Last Ten Years Ended December 31, 2012

(Amounts are in Thousands of Dollars Except Where Noted)

Proprietary Funds

Net Revenue Available for Debt Service

Total

375,298 421,292 859,045 608,232 585,522 658,035 586,220 599,309 473,741 688,575

Year

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Gross Revenues(1)

$

1,241,829 1,235,290 1,344,175 1,422,873 1,550,299 1,602,668 1,516,939 1,768,225 1,767,722 1,935,020

Operating Expense (2)

$

769,871 721,879 776,318 779,168 856,550 913,499 887,676 911,935 937,233 967,517

Interest

Debt Service Requirements

Principal

513,411 567,857 643,705 693,749 689,169 629,263 856,290 830,489 967,503

318,733 315,585 397,341 416,810 438,553 369,379 379,185 306,916 479,277

$    471,958    $     82,610     $    292,688 $

102,559

543,460

210,891 (3)

168,712

219,482

216,841

220,124

166,825

209,298

Percent Coverage

126 % 122 66 106 118 105 107 143 175 141

I

I

154

Table 20 - Concluded

CITY OF CHICAGO, ILLINOIS

REVENUE BOND COVERAGE

Last Seven Years Ended December 31, 2012

(Amounts are in Thousands of Dollars Except Where Noted)

Tax Increment Financing Funds

Net Revenue

Gross      Operating     Available for

Year      Revenues (1)    Expense (2)    Debt Service

Debt Service Requirements

Percent

Principal      Interest      Total Coverage

2006      (4)$      400,404    $    124,905    $ 275,499

1. 509,238      238,757      270,481
2. 557,596      296,469      261,127
3. 495,588      185,947      309,641
4. 474,390      229,266      245,124
5. 544,415      266,916      277,499
6. 487,495      361,783      125,712

$    75,248     $     31,553     $   106,801      258%

91,378      48,514      139,892      193%

176,221      58,292      234,513      111%

37,000      28,740      65,740      471%

36,535      28,431      64,966      377%

44,290      31,796      76,086      365%

43,025      29,136      72,161      174%

Sales Tax and Motor Fuel Tax Funds

Net Revenue       Debt Service Requirements      

Available for Percent

Year      Debt Service     Principal      Interest      Total Coverage

1. (4)            $     643,343    $      6,215     $    25,930     $     32,145      2001%
2.             652,883      13,030      25,595      38,625      1690%
3.             625,200      10,345      26,361      36,706      1703%
4.             578,119      5,425      24,245      29,670      1948%
5.             611,707      5,715      16,632      22,347      2737%
6.             618,871      16,295      25,970      42,265      1464%
7.             678,018      17,150      39,349      56,499      1200%

NOTES:

1. Total revenues include nonoperating revenues except for grants.
2. Total operating expenses excluding depreciation and amortization.
3. $446.3 million of Skyway principal was included even though that requirement was met through lease proceeds.
4. Beginning with fiscal year 2006, the City of Chicago will accumulate ten years of data for TIF and Sales Tax and Motor Fuel Tax Funds.

155

Table 21

CITY OF CHICAGO, ILLINOIS

RATIO OF OUTSTANDING DEBT BY TYPE

Last Ten Years Ended December 31, 2012

(Amounts are in Thousands of Dollars Except Where Noted)

Governmental Funds

Year

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Net General Obligation Debt

5,301,013 5,572,447 5,534,355 5,789,477 6,296,225 6,308,684 6,721,880 7,379,877 7,750,122 7,939,682

Tax Increment Allocation Bonds and Notes

$

471,846 470,688 407,709 351,776 285,363 204,811 179,871 156,881 125,201 106,241

Motor Fuel

and Sales Tax Revenue

$

543,380 533,530 518,800 512,585 499,555 552,345 559,417 553,702 770,312 753,162

Water Revenue Bonds

Installment

Purchase Capital Agreement Leases

Skyway.

32,263 309,813 278,861 245,685 207,065 169,282 177,011 166,787 163,012

$   13,800     $    31,332     $     974,014     $ 437,910

423,600

12,400 10,900 9,200 7,500 5,500 3,500 1,200

1,022,433 1,031,089 1,169,224 1,195,803 1,464,838 1,424,319 1,711,615 1,677,851 1,988,655

156

NOTES:

1. See Table 13 for Estimated Fair Market Value
2. Amounts in Dollars
3. 2011 information not available at time of publication.
4. 2012 information not available at time of publication.

Proprietary Fund Revenue Bonds

$

Chicago O'Hare International Airport

Chicago O'Hare International

Airport Passenger Facility Charge

880,326 854,533 1,215,416 796,715 766,255 725,675 709,200 816,110 797,769 750,706

Revenue Bonds   Revenue Bonds

3,218,040 3,195,155 4,387,805 4,353,685 4,562,956 4,912,635 5,092,010 5,647,115 6,481,960 6,270,770

Chicago Midway

Airport Revenue

Bonds

1,164,353 1,279,455 1,272,115 1,268,764 1,254,664 1,239,404 1,246,190 1,465,495 1,439,185 1,383,215

Wastewater Transmission Revenue Bonds

$

654,363 747,463 731,963 770,528 754,908 902,904 878,875 1,100,800 1,084,224 1,334,918

Total Primary Government

13,690,377 14,143,967 15,419,965 15,300,815 15,868,914 16,523,861 16,984,544 19,009,806 20,293,411 20,690,361

Ratio of Bonded Debt to

Estimated Fair Market

Value (1)

6.12 %

5.40

5.45

4.64

4.95

5.32

6.06

8.19 N/A (3) N/A (4)

Per Capita (2)

4,727.31 4,883.94 5,324.54 5,283.40 5,479.57 5,705.72 5,864.80 6,564.12 7,528.35 7,675.61

157

Table 22

CITY OF CHICAGO, ILLINOIS

DEBT SERVICE REQUIREMENTS FOR GENERAL LONG-TERM DEBT (1) December 31, 2012

Year                                        Sales Tax and Motor Fuel Tax    Tax Increment and Special

Ended       General Obligation Debt             Revenue Bonds      Service Area Bonds Totals

Dec. 31,     Principal      Interest      Principal        Interest        Principal        Interest      Principal Interest

2013 $   112,131,568 $   408,456,294 $  18,040,000 $  36,140,333 $ 26,113,905 $   5,931,000 $   156,285,473 $ 450,527,627

2014      214,374,425      409,006,102      18,980,000      35,199,715      14,601,762      11,818,797      247,956,187      456,024,614

2015      236,206,371      403,011,719      18,400,000      34,228,549      8,965,000      3,950,522      263,571,371      441,190,790

2016      251,616,761      392,344,156      18,135,000      33,288,259      11,160,000      3,400,094      280,911,761      429,032,509

2017      274,801,947      380,869,546      18,525,000      32,355,449      11,685,000      2,666,019      305,011,947      415,891,014

2018      287,336,972      368,168,883      19,450,000      31,433,920      14,940,000      1,970,857      321,726,972      401,573,660

2019      297,883,700      354,502,723      20,425,000      30,466,309      5,025,000      1,105,663      323,333,700      386,074,695

2020      313,053,918      342,408,943      21,405,000      29,485,165      3,165,000      821,307      337,623,918      372,715,415

2021      316,127,240      327,656,694      22,390,000      28,502,801      3,440,000      598,388      341,957,240      356,757,883

2022      320,008,400      318,419,575      23,405,000      27,429,525      7,145,000      241,144      350,558,400      346,090,244

2023      311,423,319      303,989,267      24,535,000      26,307,210      -      -      335,958,319      330,296,477

2024      305,502,012      289,694,098      25,720,000      25,130,181      -      -      331,222,012      314,824,279

2025      286,728,971      274,123,088      26,965,000      23,895,799      -      -      313,693,971      298,018,887

2026      288,271,163      261,606,450      28,270,000      22,601,359      -      -      316,541,163      284,207,809

2027      283,684,720      242,428,646      27,412,551      23,564,519      -      -      311,097,271      265,993,165

2028      283,884,806      236,214,888      31,000,000      19,951,255      -      -      314,884,806      256,166,143

2029      290,589,515      220,802,410      20,990,799      29,973,720      -      -      311,580,314      250,776,130

2030      327,232,520      210,526,136      23,080,429      27,894,498      -      -      350,312,949      238,420,634

2031       317,928,596      193,450,232      22,076,638      28,912,336      -      -      340,005,234      222,362,568

2032      349,048,762      162,305,401      22,692,868      28,300,155      -      -      371,741,630      190,605,556

2033      322,976,194      144,166,596      23,144,107      27,627,546      -      -      346,120,301      171,794,142

2034      251,437,377      127,168,523      38,945,000      14,174,055      -      -      290,382,377      141,342,578

2035      222,017,607      113,270,499      40,925,000      12,195,050      -      -      262,942,607      125,465,549

2036      204,386,559      101,770,465      43,045,000      10,074,025      -      -      247,431,559      111,844,490

2037      186,007,925      90,971,908      45,275,000      7,843,075      -      -      231,282,925      98,814,983

2038      192,161,380      80,977,910      34,870,000      5,496,500      -      -      227,031,380      86,474,410

2039      230,525,000      40,501,833      36,615,000      3,753,000      -      -      267,140,000      44,254,833

2040      241,285,000      27,525,320      38,445,000      1,922,250      -      -      279,730,000      29,447,570

2041       254,670,000      14,137,846             ..      254,670,000      14,137,846

$ 7,773,302,728 $ 6,840,476,151 $ 753,162,392 $ 658,146,558 $ 106,240,667 $ 32,503,791 $ 8,632,705,787 $ 7,531,126,500

NOTE:

(1) The amounts listed above for each year include amounts payable January 1 of the following year. Bonds maturing and interest payable January 1, 2013, have been excluded from this schedule because funds for their payment have been provided in the debt service funds. For variable rate debt, interest has been calculated at the rate in effect or effective rate of a Swap Agreement, if applicable, as of December 31, 2012. Amounts above exclude Commercial Paper issues as the timing of payments is not certain.

158

Table 23

CITY OF CHICAGO, ILLINOIS

DEBT SERVICE REQUIREMENTS FOR GENERAL OBLIGATION DEBT (1) December 31, 2012

Year      Other General Obligation

Ended      General Obligation Bonds      Debt      Totals      

Dec. 31,        Principal      Interest      Principal      Interest      Principal      Interest      Total

85,316,568 $    387,171,300 $   26,815,000 $   21,284,994 $    112,131,568 $    408,456,294 $ 520,587,862

186,174,425      384,733,913      28,200,000      24,272,189      214,374,425      409,006,102      623,380,527

197,441,371      373,990,834      38,765,000      29,020,885      236,206,371      403,011,719      639,218,090

1. 365,624,247      42,085,000      26,719,909      251,616,761      392,344,156      643,960,917
2. 227,001,947      356,592,455      47,800,000      24,277,091      274,801,947      380,869,546      655,671,493

237,021,972      346,567,691      50,315,000      21,601,192      287,336,972      368,168,883      655,505,855

247,513,700      335,769,448      50,370,000      18,733,275      297,883,700      354,502,723      652,386,423

256,543,918      326,577,110      56,510,000      15,831,833      313,053,918      342,408,943      655,462,861

268,162,240      314,971,991      47,965,000      12,684,703      316,127,240      327,656,694      643,783,934

274,633,400      308,503,658      45,375,000      9,915,917      320,008,400      318,419,575      638,427,975

264,028,319      296,710,034      47,395,000      7,279,236      311,423,319      303,989,270      615,412,589

275,642,012      285,169,576      29,860,000      4,524,522      305,502,012      289,694,098      595,196,110

279,783,971      273,258,901      6,945,000      864,187      286,728,971      274,123,088      560,852,059

280,606,163      261,094,538      7,665,000      511,912      288,271,163      261,606,450      549,877,613

283,009,720      242,308,492      675,000      120,154      283,684,720      242,428,646      526,113,366

283,169,806      236,130,941      715,000      83,947      283,884,806      236,214,888      520,099,694

289,739,515      220,756,816      850,000      45,594      290,589,515      220,802,410      511,391,925

327,232,520      210,526,136      -      -      327,232,520      210,526,136      537,758,656

317,928,596      193,450,232      -      -      317,928,596      193,450,232      511,378,828

1. 162,305,401      -      -      349,048,762      162,305,401      511,354,163

322,976,194      144,166,596      -      -      322,976,194      144,166,596      467,142,790

251,437,377      127,168,523      -      -      251,437,377      127,168,523      378,605,900

222,017,607      113,270,499      -      -      222,017,607      113,270,499      335,288,106

204,386,559      101,770,465      -      - .      204,386,559      101,770,465      306,157,024

186,007,925      90,971,908      -      -      186,007,925      90,971,908      276,979,833

192,161,380      80,977,910      -      -      192,161,380      80,977,910      273,139,290

230,525,000      40,501,833      -      -      230,525,000      40,501,833      271,026,833

241,285,000      27,525,320      -      -      241,285,000      27,525,320      268,810,320

254,670,000      14,137,846      -      -      254,670,000      14,137,846      268,807,846

$ 7,244,997,728 $ 6,622,704,614 S 528,305,000 $ 217,771,540 $   7,773,302,728 $   6,840,476,154 $ 14,613,778,882

NOTE:

(1) The amounts listed above for each year include amounts payable January 1 of the following year. Bonds maturing and interest payable January 1, 2013, have been excluded from this schedule because funds for their payment have been provided in the debt service funds. For variable rate debt, interest has been calculated at the rate in effect or effective rate of a Swap Agreement, if applicable, as of December 31, 2012. Amounts above exclude Commercial Paper issues as the timing of payments is not certain.

159

Table 24

CITY OF CHICAGO, ILLINOIS

DEBT SERVICE REQUIREMENTS FOR PROPRIETARY FUNDS (1) December 31, 2012

Interest

Interest

Year Ended December 31,

Water Revenue Bonds

Principal

Wastewater Transmission Revenue Bonds

Principal

2013       $

2014      

2015      

2016      

2017      

2018      

2019      

1.       
2.        
3.        

2023      

1.       
2.        
3.        
4.        
5.        
6.        
7.        
8.        
9.        
10.        
11.        
12.        
13.        
14.        
15.        
16.        
17.        
18.        
19.        

42,232,197 $

43,427,680

44,683,515

53,878,837

55,808,466

57,833,403

65,506,135

68,336,270

76,399,364

79,798,864

83,144,090

87,367,138

88,535,341

78,647,392

81,916,360

94,750,378

98,734,447

99,653,566

70,317,737

62,930,000

66,000,000

69,060,000

72,255,000

75,600,000

69,540,000

72,705,000

59,635,000

62,385,000

23,950,000

25,145,000

106,632,871 105,481,782 104,238,937 102,776,841 100,865,184 98,890,942 91,247,198 88,563,666 80,344,624 77,038,843 73,530,426 69,778,725 65,890,769 61,904,343 57,961,496 53,859,730 49,471,759 44,826,616 40,199,613 36,507,432 32,991,720 29,475,961 25,796,746 21,946,689 17,917,847 14,102,338 9,905,626 6,263,396 2,454,750 1,257,250

35,905,111 $

37,596,874

39,433,680

41,295,533

43,157,431

45,114,378

40,228,004

39,530,958

40,879,911

42,373,209

43,907,289

55,797,560

39,191,697

40,550,626

41,964,301

48,360,050

50,785,050

53,130,050

55,457,525

57,565,000

60,350,000

63,095,000

65,955,000

59,905,000

62,755,000

53,980,000

44,005,000

15,950,000

16,700,000

64,797,101 63,159,464 61,322,619 59,437,903 57,658,238 55,805,213 60,963,968 61,633,025 60,348,661 58,956,460 57,501,809 46,037,139 62,157,360 60,858,478 59,463,321 38,161,931 35,693,085 33,098,857 30,338,394 27,427,826 24,373,753 21,169,866 17,818,478 14,187,027 10,783,724 7,268,147 4,229,285 1,532,500 785,000

$   2,030,176,174  $    1,672,124,120       $    1,334,919,237  $ 1,156,968,632

NOTE:

(1) The amounts listed above for each year include amounts payable January 1 of the following year. Bonds maturing and interest payable January 1, 2013, have been excluded from this schedule because funds for their payment have been provided in the debt service funds. For variable rate debt, interest has been calculated at the rate in effect or effective rate of a Swap Agreement, if applicable, as of December 31, 2012. Amounts above exclude Commercial Paper issues as the timing of payments is not certain.

160

Chicago-O'Hare International

Airport and Chicago Midway      Year

International Airport Bonds      Totals            Ended

Principal      Interest      Principal      Interest      Total            December 31,

185,205,000 $    411,324,276 $     263,342,308 $     582,754,248 $      846,096,556             2013

297,070,000        402,469,486      378,094,554      571,110,732      949,205,286             2014

296,935,000        387,977,748      381,052,195      553,539,304      934,591,499             2015

275,505,000        374,550,400      370,679,370      536,765,144      907,444,514             2016

324,050,000        360,808,134      423,015,897      519,331,556      942,347,453             2017

318,470,000        344,811,299      421,417,781      499,507,454      920,925,235             2018

295,125,000       329,032,378      400,859,139      481,243,544      882,102,683             2019

269,010,000        314,296,397      376,877,228      464,493,088      841,370,316             2020

259,805,000        301,767,368      377,084,275      442,460,653      819,544,928             2021

253,260,000        288,519,781      375,432,073      424,515,084      799,947,157             2022

266,470,000        275,352,528      393,521,379      406,384,763      799,906,142             2023

338,200,000        261,499,838      481,364,698      377,315,702      858,680,400             2024

297,120,000        246,758,213      424,847,038      374,806,342      799,653,380             2025

311,375,000        231,308,789      430,573,018      354,071,610      784,644,628             2026

327,420,000        215,579,829      451,300,661      333,004,646      784,305,307             2027

475,865,000        199,332,162      618,975,428      291,353,823      910,329,251             2028

370,020,000        181,914,801      519,539,497      267,079,645      786,619,142             2029

381,000,000        163,538,816      533,783,616      241,464,289      775,247,905             2030

383,005,000        144,471,773      508,780,262      215,009,780      723,790,042             2031

407,415,000        125,382,758      527,910,000      189,318,016      717,228,016             2032

414,365,000        106,350,503      540,715,000      163,715,976      704,430,976             2033

441,885,000         87,709,265      574,040,000      138,355,092      712,395,092             2034

213,230,000         70,464,120      351,440,000      114,079,344      465,519,344             2035

224,535,000         57,714,094      360,040,000      93,847,810      453,887,810             2036

235,600,000         44,279,190      367,895,000      72,980,761      440,875,761             2037

246,350,000         30,481,392      373,035,000      51,851,877      424,886,877             2038

147,345,000          15,609,644      250,985,000      29,744,555      280,729,555             2039

98,440,000           6,395,308      176,775,000      14,191,204      190,966,204             2040

40,650,000      3,239,750      43,889,750             2041

1,257,250      1,257,250             2042

$ 8,354,075,000 $ 5,979,700,290 $ 11,694,025,411  $   8,808,793,042 $ 20,502,818,453

161

Table 25

CITY OF CHICAGO, ILLINOIS LONG-TERM DEBT December 31, 2012

Long-term debt is comprised of the following issues at December 31, 2012 (dollars in thousands):

Outstanding at

Original      December 31,

Principal      2012

General Long-term Debt: General Obligation Debt: General Obligation Bonds:

Refunding Series of 1993 B-4.25% to 5.125%            153,280      67,480

Project and Refunding Series 1995 A-2 - 5.0% to 6.25%            220,390      81,645

Tender Bonds 1996 B - Variable Rate (.08% at December 31, 2012)            1,500      200

Project and Refunding Series 1998-3.85% to 5.5%            426,600      42,645

Emergency Telephone System Refunding Series 1999 - 4.5% to 5.5%            213,110      124,385

City Colleges of Chicago Capital Improvement Project Series 1999 - 6.0%            308,964      188,028

Project Series 2000 A - 4.85% to 6.75%            254,293      7,403

Project and Refunding Series 2001 A - 4.0% to 5.65%            580,338      82,674

Project and Refunding Series 2002 A - 4.0% to 5.65%            169,765      3,240

Neighborhoods Alive 21 Program Series 2002 B - 3.575%            206,700      206,700

Neighborhoods Alive 21 Program Series 2003 - 2.0% to 5.25%            103,140      9,650

Project and Refunding Series 2003 A - 4.625% to 5.25%            157,990      48,700

Project and Refunding Series 2003 B - 4.052%            202,500      195,975

Project Series 2003 C and D - 2.0% to 5.25%            198,265      33,780

Emergency Telephone System Series 2004 - 3.0% to 6.9%            64,665      43,245

Project and Refunding Series 2004- 1.92% to 5.5%            489,455      131,490

Refunding Series 2005 A - 2.5% to 5.0%            441,090      304,045

Project and Refunding Series 2005 B and C - 3.5% to 5.0%            339,275      299,645

Variable Rate Demand Bonds Series 2005 D - 4.104%            222,790      222,790

Direct Access Bonds, Series 2005-2.876% to 4.5%            114,695      73,277

Direct Access Bonds, Series 2006-3.5% to 4.4%            35,753      30,708

Project and Refunding Series 2006 A and B - 3.5% to 5.375%            649,995      577,485

Project and Refunding Series 2007 A and B - 3.75% to 5.462%            589,590      546,145

City Colleges of Chicago Capital Improvement Project Series 2007 - 4.0% to 5.0%            39,110      35,925

Project and Refunding Series 2007 C and D - 4.0% to 5.44%            330,890      298,100

Project and Refunding Series 2007 E through G - 3.998%            200,000      200,000

Project and Refunding Series 2008 A and B - 3.0% to 5.765%            473,705      466,520

Project and Refunding Series 2008 C through E -1.0% to 6.05%            611,017      605,672

Project and Refunding Series 2009 A through D - 4.0% to 6.257%            793,275      793,275

Project Series 2010 B-7.517%            213,555      213,555

Project Series 2010 C-1 - 7.781%            299,340      299,340

Project Series 2011 A and B - 4.625% to 6.034%            416,345      416,345

Project Series 2012 A and C - 4.0% to 5.432%            594,850      594,850

Total General Obligation Bonds            $10,116,230        $ 7,244,917

162

Table 25 - Continued CITY OF CHICAGO, ILLINOIS LONG-TERM DEBT December 31, 2012

Outstanding at

Original      December 31,

Principal      2012

Commercial Paper Notes:

Commercial Paper Notes - Variable Rate (.23% to .43% at December 31, 2012)            $      166,460      $ 166,460

Total Commercial Paper Notes            166,460       166,460

Total General Obligation Bonds and Notes            10,282,690      7,411,377

General Obligation Certificates and Other Obligations:

Building Acquisition Certificates (Limited Tax) Series 1997 - 4.4% to 5.4%            28,800      11,925

Modern Schools Across Chicago Program - Series 2007 A through K - 3.6% to 5.0%            356,005      281,220

Modern Schools Across Chicago Program-Series 2010 A and B-3.0% to 5.364%            150,115      144,160

MRL Financing LLC Promissory Note - 5.0% to 7.5%             91,000       91,000

Total General Obligation Certificates and Other Obligations            625,920      528,305

Total General Obligation Debt            10,908,610      7,939,682

Tax Increment Allocation Bonds and Notes:

Read-Dunning Redevelopment Project Tax Increment - Series 1996 B - 7.25%            7,035      1,250

Sanitary Drainage Tax Increment - Series 1997 A - 7.375% to 7.75%            5,530      1,090

Lincoln/Belmont/Ashland Tax Increment - Series 1998 - 4.0% to 11.0%            12,375      5,695

Irving/Cicero Tax Increment - Series 1998 - 7.0%            4,470      875

Near South Tax Increment - Series 1999 A and B - 4.0% to 5.65%            50,000      8,120

Near North Tax Increment - Series 1999 A and B - 5.084% to 6.89%            55,000      35,600

Neighborhood Improvement Fund Tax Increment Notes - 7.0% to 9.5%            17,420      554

Goose Island Redevelopment Tax Increment - Series 2000 - 7.45%            16,800      12,195

Near South Tax Increment - Series 2001 A and B - 4.75% to 6.25%            46,242      11,982

Pilsen Redevelopment Project - Series 2004 - 4.35% to 6.75%              49,520       28,880

Total Tax Increment Allocation Bonds and Notes            264,392      106,241

Motor Fuel Tax and Sales Tax Revenue Bonds:

Motor Fuel Tax Revenue Bonds - Refunding Series 1993 - 4.05% to 6.125%            70,175      6,165

Motor Fuel Tax Revenue Bonds - Series 2003 - 2.25% to 5.25%            115,645      114,390

Motor Fuel Tax Revenue Bonds - Series 2008 A and B - 4.0% to 5.0%            66,635      66,635

Sales Tax Revenue Bonds-Series 1998-4.5% to 5.5%            125,000      16,870

Sales Tax Revenue Bonds - Series 2002 - 4.23%            116,595      112,755

Sales Tax Revenue Refunding Bonds - Series 2005 - 3.25% to 5.0%            142,825      112,550

Sales Tax Revenue Refunding Bonds - Series 2009 - 4.25% to 6.0%            90,892      90,892

Sales Tax Revenue Refunding Bonds - Series 2011 - 4.375% to 5.504%            232,905      232,905

Total Motor Fuel Tax and Sales Tax Revenue Bonds            960,672      753,162

Total General Long-term Debt            12,133,674      8,799,085

163

Table 25 - Continued CITY OF CHICAGO, ILLINOIS LONG-TERM DEBT December 31, 2012

Outstanding at

Original      December 31,

Principal      2012

Proprietary Fund Revenue Bonds: Water Revenue Bonds:

Refunding Series 1993-4.125% to 6.5%            49,880      15,810

Series 1997-3.9% to 5.25%            277,911      14,019

Series 2000 - 2nd Lien - 3.87%            100,000      100,000

Series 2000 - 4.375% to 5.875%            156,819      19,153

Series 2001 - 3.0% to 5.75%            353,905      80,900

Series 2004 - 2nd Lien - 3.867%            500,000      366,150

Series 2006A - 2nd Lien - 4.5% to 5.0%            215,400      188,985

Series 2008 - 2nd Lien - 4.0% to 5.25%            549,915      485,745

Series2010-2nd Lien-2.0%to6.742%            313,580      300,355

Series2012-2nd Lien-4.0%to5.0%            399,445      399,445

Illinois Environmental Protection Agency Loan - 2.905%            3,605      1,911

Illinois Environmental Protection Agency Loan - 2.57%            2,642      1,799

Illinois Environmental Protection Agency Loan -1.25%            6,000      5,734

Illinois Environmental Protection Agency Loan - 0.00%             9,077      8,649

Total Water Revenue Bonds            2,938,179"      1,988,655"

Chicago-O'Hare International Airport Bonds:

Chicago-O'Hare International Airport Revenue Bonds:

Refunding Series of 2003 A through C - 3rd Lien - 4.5% to 6.0%            986,310      970,410

Series of 2003 D through F-3rd Lien-2.125% to 5.5%            149,330      129,015

Series of 2004 A through H - 3rd Lien - 3.49% to 5.35%            385,045      214,930

Series of 2005 A and B - 3rd Lien - 5.0% to 5.25%            1,200,000      1,200,000

Series of 2005 C and D - 3rd Lien - Variable Rate (.13 to .14% at December 31, 2012)            300,000      240,600

Series of 2006 A through D - 3rd Lien - 4.55% to 5.5%            156,150      57,530

Series of 2008 A through D - 3rd Lien - 4.0% to 5.0%            779,915      776,235

Series of 2010 A through F - 3rd Lien -1.75% to 6.845%            1,039,985      973,730

Series of 2011 A through C - 3rd Lien - 3.0% to 6.5%            1,000,000      1,000,000

Refunding Series of 2012 A through C-3rd Lien-1.0% to 5.0%            728,895      708,320

Total Chicago-O'Hare International Airport Revenue Bonds            6,725,630      6,270,770

Chicago-O'Hare International Airport Passenger Facility Charge Revenue Bonds:

Refunding Series of 2008 A-4.0% to 5.0%            111,425      70,025

Refunding Series of 2010 A through D - 2.0% to 6.322%            137,665      135,810

Refunding Series of 2011 A and B - 5.0% to 6.0%            46,005      46,005

Refunding Series of 2012 A and B - 2.5% to 5.0%            452,095      448,250

Commercial Paper Notes - Variable Rate (.18% to .23% at December 31, 2012)             50,616       50,616

Total Chicago-O'Hare International Airport Passenger Facility Charge Revenue Bonds            797,806      750,706

164

Table 25 - Concluded CITY OF CHICAGO, ILLINOIS LONG-TERM DEBT December 31, 2012

Outstanding at

Original      December 31,

Principal      2012

Proprietary Fund Revenue Bonds - Concluded:

Chicago Midway International Airport Revenue Bonds:

Series 1996 A and B-4.8% to 6.5%                                                                 $      254,040    $      134,885

Series 1998A, BandC-4.3%to5.5%            397,715      369,700

Series 1998 - 2nd Lien A and B - Variable Rate (. 15% at December 31, 2012)            171,000      132,525

Series 2001 A and B - 5.0% to 5.5%            295,855      239,265

Refunding Series 2004 A and B - 2nd Lien - 3.2% to 5.5%            77,565      59,945

Series 2004 C and D-2nd Lien-4.174%            152,150      144,675

Series 2010 A - 2nd Lien - Variable Rate (.20% to .21% at December 31, 2012)            80,475      76,575

Series 2010 B through D-2nd Lien-3.532% to 7.168%            246,540      225,645

Total Chicago Midway International Airport Revenue Bonds            1,675,340      1,383,215

Wastewater Transmission Revenue Bonds:

Refunding Series 1998 A-4.55% to 5.0%            62,423      35,168

Series 2001 - 2nd Lien - 3.5% to 5.5%            187,685      65,420

Refunding Series 2004 B - 2nd Lien - 3.0% to 5.25%            61,925      41,940

Series 2006 A and B - 2nd Lien - 4.5% to 5.0%            155,030      139,240

Series 2008 A - 2nd Lien - 4.0% to 5.5%            167,635      157,025

Series 2008 C1 through C3 - 2nd Lien - 3.886%            332,230      332,230

Series2010-2nd Lien-2.0%to6.9%            275,865      272,030

Series2012-2nd Lien-3.0%to5.0%            276,470      276,470

Illinois Environmental Protection Agency Loan - 2.5%             1,546      1,242

Illinois Environmental Protection Agency Loan - 0.00%             15,000      14,153

Total Wastewater Transmission Revenue Bonds            1,535,809      1,334,918

NOTE:

The balance outstanding at December 31, 2012 listed above for each year excluded amounts payable January 1, 2013. In addition, the balance outstanding of water revenue bonds at December 31, 2012 excludes payments due on November 1, 2013.

165

Table 26

CITY OF CHICAGO, ILLINOIS POPULATION AND INCOME STATISTICS Last Ten Years

Year

2003

1. .
2. . 2006 2007

1. .
2. .
3. .
4. .
5. .

Population(l)

2,896,016 2,896,016 2,896,016 2,896,016 2,896,016 2,896,016 2,896,016 2,695,598 2,695,598 2,695,598

Median Age (2)

32.6 32.6 33.0 33.5 33.7 34.1 34.5 34.8 33.2 33.0

Number of Households (2)

1,067,823 1,051,018 1,045,282 1,040,000 1,033,328 1,032,746 1,037,069 1,045,666 1,048,222 1,030,746

Unemployment Rate (3)

8.2 %

7.2

7.0

5.2

5.7

6.4 10.0 10.1

9.3

8.9

Total Income

Per Capita Income (4)

$       35,464    $ 102,704,311,424

37,169      107,642,018,704

38,439      111,319,959,024

41,887      121,305,422,192

43,714      126,596,443,424

45,328      131,270,613,248

43,727      126,634,091,632

45,957      123,881,597,286

45,977      123,935,509,246

N/A (5)      N/A (5)

NOTES:

1. Source: U.S. Census Bureau.
2. Source: World Business Chicago Website, Claritas data estimates; Cook County's Website.
3. Source: Bureau of Labor Statistics 2012, Unemployment rate for Chicago-Naperville-lllinois Metropolitan Area.
4. Source: U.S. Department of Commerce, Bureau of Economic Analysis, Per Capita Personal Income for Chicago-Naperville-lllinois Metropolitan Area (in 2012 dollars).
5. N/A means not available at time of publication.

166

i

Table 27

CITY OF CHICAGO, ILLINOIS

PRINCIPAL EMPLOYERS (NON-GOVERNMENT)

Current Year and Nine Years Ago (See Note at the End of this Page)

Employer

J. P. Morgan Chase Bank, N. A. (2)      

United Airlines      

Accenture LLP      

Northern Trust Corporation      

Jewel Food Stores, Inc      

Ford Motor Company      

Bank of America NT & SA      

ABM Janitorial Services - North Central

American Airlines      

Walgreen's Co      

CVS Corporation      

SBC Ameritech (3)      

Target Corporation      

Harris Trust & Savings Bank      

LaSalle Bank      

United Parcel Service      

Number of

Employees

8,168 7,521 5,590 5,448 4,572 4,187 3,811 3,398 3,076 2,789

2012 (1)      

Percentage of

1 2 3 4 5 6 7 8 9

10

Total City Rank Employment

0.70 0.52 0.51 0.43 0.39 0.36 0.32 0.29 0.26

Number of

Employees

10,192 7,634 3,862 5,084

4,403

5,240 2,904 2,684 2,668 2,649

2003 (1)      

Percentage of

1 2 6 4

Total City Rank Employment

0.71 0.36 0.47

3 7 8 9

10

0.41

0.49 0.27 0.25 0.25 0.25

NOTES:

1. Source: City of Chicago, Department of Revenue, Employer's Expense Tax Returns.
2. J. P. Morgan Chase formerly known as Banc One.
3. Ameritech currently known as SBC/AT8<T.

167

Table 28

CITY OF CHICAGO, ILLINOIS

FULL TIME EQUIVALENT CITY OF CHICAGO EMPLOYEES BY FUNCTION Last Seven Years (See Note at the End of this Page)

Budgeted Full Time Equivalent

      Positions      

      Function      2012         2011      2010         2009         2008      2007      2006

General Government                        3,856        4,363        4,401        4,419        5,112        5,195      5,214

Public Safety                                 21,040       22,716       22,912       22,954       23,313      23,397      23,345

Streets and Sanitation                       2,303        2,576        2,605        3,087        3,648        3,609      3,578

Transportation                                   929          980        1,022          718           819          829      862

Health                                            904           991         1,117        1,257        1,535        1,554      1,570

Cultural and Recreational                    1,153        1,207        1,213        1,318        1,596        1,608      1,620

Business-type Activities                      3,523        3,615        3,619        3,666        3,898        4,015      4,108

Total                                        33,708       36,448       36,889       37,419       39,921      40,207      40,297

NOTES:

1. 1. Source: City of Chicago 2013 Budget Overview, 2012 figures. Includes full time equivalent positions in grant related programs.
2. Beginning with fiscal year 2006, the City of Chicago will accumulate ten years of data.

168

Table 29

CITY OF CHICAGO, ILLINOIS

OPERATING INDICATORS BY FUNCTION/DEPARTMENT Last Seven Years (See Note at the End of this Page)

Function/Program      2012      2011      2010      2009      2008      2007      2006

Police

Physical Arrests            145,390       152,740      167,355       181,254       196,621       221,915 227,576

Fire

Emergency Responses            472,752       343,749      343,214       363,519       377,808       402,403 300,971

Refuse Collection

Refuse Collected (Tons per Day)..      3,763      3,983        3,931      3,974      4,240      4,320 4,451

Cultural

Volumes in Library            5,691,321     5,790,289     5,769,587     5,743,002     5,721,334     5,891,306 5,700,000

Water

Average Daily Consumption

(Thousand of Gallons)            793,274       770,925      773,612       808,551       827,156       860,285 884,970

Table 30

CITY OF CHICAGO, ILLINOIS

CAPITAL ASSET STATISTICS BY FUNCTION

Last Seven Years (See Note at the End of this Page)

Function      2012      2011      2010      2009      2008      2007 2006

Police Stations            25      26      25      25      25      25      25

Fire Stations            104      104      103      103      101      102      102

Other Public Works

Streets (Miles)            4,116      4,091      3,775      3,775      3,775      3,775      3,775

Streetlights            279,668      278,788      261,019      259,699      285,989      192,511      190,000

Traffic Signals            3,035      2,960      2,960      2,960      2,960      2,727      2,795

Water Mains (Miles)            4,349      4,360      4,300      4,300      4,375      4,236      4,230

Sewers Mains (Miles)            4,450      4,400      4,400      4,400      4,500      4,500      4,500

NOTE:

(1) Beginning with fiscal year 2006, the City of Chicago will accumulate ten years of data.

169

Table 31

CITY OF CHICAGO, ILLINOIS

INTEREST RATE SWAP COUNTERPARTY ENTITIES December 31, 2012

(Amounts are in Thousands of Dollars)

Associated Bond Issue

GO VRDB (Series 2007EFG).

GO VRDB (Series 2005D)      

GO VRDB (Neighborhoods Alive 21

Program, Series 2002B)      

Sales Tax Revenue Refunding

Bonds (VRDB Series 2002)      

Tax Increment Allocation Bonds

(Near North TIF, Series 1999A)      

Chicago Midway International

Airport Revenue Bonds

(Series 2004C&D)      

Wastewater Transmission Variable Rate

Revenue Bonds (Series 2008C)      

Water Variable Rate Revenue

Refunding Bonds (Series 2004)      

Water Variable Rate Revenue

Refunding Bonds (Series 2004)      

Second Lien Water Revenue

Refunding Bonds (Series 2000)      

GO VRDB (Series 2003B)      

Total      

Current Notional Amounts

$ 150,000 50,000 200,000 **

155,953 66,837

100,000      **

61,395      **

61,395      **

207,880      **

155,025 51,675

113,240

38,900

89,100 59,400

232,560 49,835 49,835

185,780

190,520

100,000

149,280 49,760 49,760 ** 149,280 ** 144,750 **

$ 2,912,160

Counterparty Credit Rating Moody's/S&P

A2/A+* Baa1/A-Aa3/AA-

A3/A-A2/A+* Aa1/AA-* A2/A+* A2/A+* A2/A

Aa3/A+ A3/A

Aa3/A+

A3/A

A3/A Aa3/AA-

A2/A+* A3/A Aa3/A+

A2/A

Aa3/AA-

A2/A

Aa3/AA-

Aa3/A+

Aa3/A+ Aa1/AA-* A2/A

Counterparty Entity

Loop Financial Products III Morgan Stanley Wells Fargo

Goldman Sachs Loop Financial Products III

Rice Financial Loop Financial Products III Jefferies & Co PNC Bank

JP Morgan Bank of America

JP Morgan

Bank of America

Goldman Sachs Wells Fargo

Loop Financial Products I Bank of America JP Morgan

UBS

RBC

UBS

Wells Fargo JP Morgan JP Morgan Rice Financial PNC Bank

Source: Survey of Derivative Instruments - Notional amount as of 12/31/12. *   Reflects the rating of the credit support provider. ** Reflects Swap overlay agreement.

170

SUPPLEMENT TO

CITY OF CHICAGO

COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2012

 

Rahm Emanuel, Mayor

Lois A. Scott, Chief Financial Officer Amer Ahmad, City Comptroller

Department of Finance city of chicago

June 29, 2013

To the Honorable Mayor and Members of the City Council of the City of Chicago

Ladies and Gentlemen:

This report is a supplement to the Comprehensive Annual Financial Report of the City of Chicago for the year ended December 31, 2012.

The Comprehensive Annual Financial Report should be referenced for the following information:

1. Introductory Section.
2. Financial Section.
3. Statistical Section.

This supplemental report contains:

The City Treasurer's Annual Statements and Detail Expenditure Statements for the General and Special Revenue Funds for the year ended December 31, 2012.

Respectfully submitted,

 

Amer Ahmad City Comptroller

33 NORTH LASALLE STREET, SUITE 600, CHICAGO, ILLINOIS 60602

SUPPLEMENT TO CITY OF CHICAGO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2012

Table of Contents

Letter of Transmittal       1

SUMMARIZED STATEMENTS

Schedule   1     Treasurer's Annual Statement       4

Schedule   2    Treasurer's Annual Statement, City of Chicago Payroll Account       66

Schedule   3    General Fund - Schedule of Expenditures and Encumbrances -

Budget and Actual (Budgetary Basis)       67

Schedule   4    Special Revenue Funds - Schedule of Expenditures and Encumbrances -

Budget and Actual (Budgetary Basis)       82

Schedule   5     Special Revenue Funds - Motor Fuel Tax Fund Statement of

Cash Receipts and Expenditures       97

Schedule   6     Special Revenue Funds - Federal, State and Local Grants

Combining Balance Sheet       98

Schedule   7    Special Revenue Funds - Federal, State and Local Grants

Combining Statement of Revenues, Expenditures and

Changes in Fund Balance       100

SUMMARIZED STATEMENTS

Schedule 1

CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury

Jan. 1, 2012

      (Overdraft)      

GENERAL FUNDS

Unspecified            $ (3,529,124)

Corporate Purposes Fund       74,095,893

Graphics & Reproduction Center       (2,772,774)

Financial Operation Support Section       777,945

Environmental Control Fund            (1,024,458)

Parking Ticket Revenue Deposit            137,367,470

Revenue Collection Audit Fund            (137,322)

Judgment Tax Fund            23,740,218

Special City Programs       100

Traction Fund       15,540,452

PVPR Error File - Fund             (2,320)

Total General Funds 244,056,080

SPECIAL REVENUE FUNDS

Clark-Lawrence Special Service Area No. 31            3,723

47Th/State Redevelopment TIF Incremental Taxes Fund            6,037,962

Lakeside/Clarendon Redevelopment TIF Incremental Taxes Fund            534,845

Devon/Sheridan Redevelopment TIF Incremental Taxes Fund            2,304,303

69Th/Ashland Redevelopment TIF Incremental Taxes Fund            942,325

Auburn Gresham Special Service Area No. 32            334

Wicker Park/Bucktown Special Service Area No. 33            482

Uptown Special Service Area No. 34      

Lincoln Avenue Special Service Area No. 35            76

Ravenswood Corridor Special Service Area No.37            3,823

Northcenter Special Service Area No. 38            41,502

Ravenswood Corridor Redevelopment TIF Incremental Taxes Fund            3,758,084

Brighton Park/Archer Heights            343,476

Michigan Avenue-Roseland Special Service Area No. 40      

103Rd Street-Roseland Special Srvice Area No. 41      

Devon Avenue Special Service Area No. 43      

TouchyAA/estern Redevelopment TIF Incremental Taxes Fund            2,192,382

Harrison/Central Redevelopment TIF Incremental Taxes Fund            1,631,813

Lasalle Central Redevelopment TIF Incremental Taxes Fund            34,593,682

83Rd/Street Redevelopment TIF Incremental Fund            1,342,011

Pershing/King Redevelopment TIF Incremental Taxes Fund            722,320

73Rd/University Redevelopment TIF Incremental Taxes Fund            2,417,715

26Th And King Drive Redevelopment TIF Incremental Taxes Fund            883,546

Western Avenue/Rock Island Redevelopment TIF Incremental Taxes Fund            7,541,259

79Th/Cicero Redevelopment TIF Incremental Taxes Fund            592,247

Armitage/Pulaski Redevelopment TIF Incremental Taxes Fund            1,061,141

4

(3,522,181) $ 824,166,521

119,614

Receipts

Disbursements

Including Settlements   Including Settlements

Between Funds

Between Funds

2,021,860,353 (23,854) 19,228

123,544,191

820,763,954

186,735

2,145,586,653

Transfers

In

405,751,313 29,187 450,479

15,133

406,246,112

Out

1,665,277,780 920,950 148,258,960

1,814,457,690

Balance in Treasury Dec. 31, 2012 (Overdraft)

$

(6,943) 12,263,258 (2,767,441) 207,088 (1,024,458) 112,667,834 (137,322) 23,926,953 100

15,540,452 (2,320)

160,667,201

59,530 1,606,976 22,763 431,944 643,423 31,911 41

14,947

3,494 741,399

39,256 7,133 36,624 348,943 611,878 6,510,828 472,768 41,270 525,119 750,352 1,371,263 481,184 237,221

1,355,124 54,000

1,397,173 62,000

514,062

56,666 588,109 10,361,069

2,408,637 244,997 734,418 949,086 500,521 92,812

14,804 961 4,702 1,987

8,804

5,288 3,703 116,670 2,842 1,901,435 5,386 3,999 16,957 1,747 2,445

20,216 2,925

24,909 6,597

39,718

8,097 9,847 3,731,297 6,260 1,126 6,977 13,646 26,554 7,830 5,763

63,253 6,284,402 501,644 1,318,867 1,519,138 32,245 523 14,947 76 3,823 44,996 3,954,507 343,476 39,256 7,133 36,624 2,481,850 1,649,438 27,128,814 1,811,361 255,262 2,696,246 889,833 7,953,839 566,827 1,202,232

5

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT

Year Ended December 31, 2012      

Balance in Treasury Jan. 1, 2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

79ThA/incennes Redevelopment TIF Incremental Taxes Fund                                             $      1,802,754

Austin Commercial Redevelopment TIF Incremental Taxes Fund            4,260,251

Stevenson/Brighton Redevelopment TIF Incremental Taxes Fund            3,159,193

Little Village Redevelopment TIF Incremental Taxes Fund            1,946,463

Elston/Armstrong Redevelopment TIF Incremental Taxes Fund            1,602,401

Addison South Redevelopment TIF Incremental Taxes Fund            7,611,746

Harlem Industrial Park Redevelopment TIF Incremental Taxes Fund            727,983

Pratt/Ridge Indust. Park Conservation Area Redevelopt. TIF Incremental Taxes Fund            399,020

Hollywood/Sheridan Redevelopment TIF Incremental Taxes Fund            2,622,928

Kennedy/Kimball Redevelopment TIF Incremental Taxes Fund            748,146

134Th Street And Avenue K Redevelopment TIF Incremental Taxes Fund            22,408

Weed/Fremont Redevelopment TIF Incremental Taxes Fund            395,022

47Th Street And Cottage Grove Special Service Area No. 47            12

Little Village East Redevelopment TIF Incremental Taxes Fund            340,002

Ogden/Pulaski Redevelopment TIF Incremental Taxes Fund            5,046,128

Kostner Avenue Redevelopment TIF Incremental Taxes Fund            2,133

Special Service Area No.46            391,941

Avondale Redevelopment TIF Incremental Taxes Fund            1,355,436

Ewing Avenue Redevelopment TIF Incremental Taxes Fund            972,746

RandolphAA/ells Redevelopment TIF Incremental Taxes Fund            59,783

ArcherAA/estern Redevelopment TIF Incremental Taxes Fund            913,427

Irving Park/Elston Redevelopment TIF Incremental Taxes Fund            798,010

North Pullman Redevelopment TIF Incremental Taxes Fund            371,329

South Shore/Exchange Special Service Area No. 49            476,050

Calumet Heights/Avalon Special Service Area No. 50      

Chatham Special service Area No. 51      

Police Anti-Money Laundering Initiative            2,179,467

Small Business Development Loan Fund            317,625

Transaction Tax CTA            5,687,449

Human Infrastructure            36,374,422

Justice Federal Asset Forfeiture            4,631,940

Legal Reserve Fund            75,245

TiF Administration Fund            (5,443,394)

PM Salvage 2010            1,333,458

Allied Settlement Agreement      

Lakeview East Special Area No. 8 (Reconstituted In 2011)      

Central Lakeview Special Service Area No. 17 (Reconstituted In 2011)      

6

Receipts Including Settlements

Between Funds

$

327,378 946,405 389,125

247,131 2,869,078

67,326 283,133

28,567 207,453

355,957 10,259 101,502 1,543,696

148 110,824 119,494 31,843 230,677 160,533 116,826 296,452 95,977 67,760 48

27,054,363 280,169 2,258,659 8,792

11,000,000 496,028 395,879

Disbursements Including Settlements

Between Funds

$

676,812 200,786 221,343 134,159 763,536 57,000

916,459 28,124

797,075

238,193 119,661 107,843

246,043 749,669

31,825,503 8,433,568 3,773,601

229,320 455,595 243,408

Transfers

In

4,093 9,634 7,206 4,935 3,615 15,968 1,876 1,929 1,236 1,397 29 605

638 105,101 7

3,410

2,479 1,780 1,795 1,010

1,478 2,179,343 1,098,468 489,048 177 5,677,749 4,029

Out

6,038 20,491 18,145 17,283

6,930 37,022 10,064

4,222 12,260

7,212 250

4,431

2,053 33,916

2,990 2,098 651 9,707 4,465 3,888

2,179,343

745,582 2,196,937 5,374

3,251,752

1,672,015

Balance in Treasury Dec. 31, 2012

(Overdraft)

S 2,128,187 4,518,987 3,336,593 1,712,772 1,712,058 9,696,234 730,121 679,860 1,724,012 921,660 22,187 747,153 10,271 440,089 5,863,934 2,140 153,896 1,347,019 982,299 93,454 1,136,177 955,873 239,234 22,833 95,977 67,760 172 319,103 2,350,070 27,122,554 3,600,672 84,214 (3,246,717) 881,892 9,084,577 496,028 395,879

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT

Year Ended December 31, 2012      

Balance in Treasury Jan. 1, 2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

Lakeview (Lincoln/Belmont/Ashland) Special Service Area No. 27(Reconstituted In 2011).. $

63Rd/Ashland Redevelopment TIF Incremental Taxes Fund            1,319,873

West Woodlawn Redevelopment TIF Incremental Taxes Fund            88,530

2008 Motor Fuel Tax - 2008 Project Fund            394,408

Dept. of Health-HHS (CDC)            (22,905)

Health Enviroment State Programs      

Dept. of Health - Health Services Program Income            1,784,780

Dept of Health - HHS (CDC)            28,062

Chicago-Family Case Management            (787,562)

Zero To Five Assurance Network            (23,052)

Targeted Intensive Prenatal Case            211,671

Healthy Families Illinois            (25,567)

Healthy Child Care Illinois            753

Special Projects Generic-Prevention            100

Prevention Domestic Violence            1,000

Family Planning Serives            92,390

Family Case Management-Medicaid            1,401,811

Breastfeeding Peer Counseling            11,247

Misc. Other Funded Grants            7,294

Chaps HUD Grants            208,252

Upfront Grant - Douglas-Lawndale Proj            65,544

Rental HSG. Support Prog            5,956,000

Home 2006      

1. Home Investment Partnership Program            (175,212)
2. Home Investment Partnership Program            (423,928)
3. Home Investment Partnership Program            1,179,727
4. Home Investment Partnership Program            (113,957)
5. Home Investime Partnership Program      

CHA/Dearborn and Harold Ickes Home            49,214

Ravenswood Industrial Corridor            100,123

Cities For Leadership Grant            41,613

Former Amforge Site Remediation            5,000,000

IKE Property Buyout Program      

GX Chicago LLC            4,659,479

CMAP-Eecdbg      

CHAP-CDBG 2007            (2,921,695)

CHAP - CDBG 2008            (2,347,972)

8

Receipts Including Settlements

Between Funds

$

414,271 1,353,468 51,743 1,511,000 401,225 68,087 5,132,536 47,847 1,245,130 15,700 255,319 143,592

100

559,182 397,842

430,108 4,773,000 96,290

742,631 2,038,179 8,832,794 1,738,998

754,165

302,502 6

292,500 11,080

Disbursements Including Settlements

Between Funds

$

29,684

2,226,215 106,135

1,357,993 12,028 14,217 1,444 32,989 144,751

539,730 10,728,500 96,290 716,459 1,826,004 9,317,801 1,539,160 1,223,827

3,871,677 754,620

8,671

Transfers

In

607 41

25,739

74,240 201,997

10,000

219,549 5,362,237

253

Out

14,897 1,000 132,920 277,208 62,112 5,958,687

1,338,657 16,011 206,216 86,966 1,468

316,134

278,316

26,173

242,331 190,707 1,158,687

50,475

2,580

Balance in Treasury Dec. 31, 2012

(Overdraft)

$ 414,271 2,629,367 139,314 (427,988) (5,023) 80,215 (197,367) 63,881 (895,306) (24,807) 227,785 (113,692) (715) 200 1,000 335,438 1,799,653 11,247 7,294 (60,064) (44,078) 500

(175,213) (211,753) 452,389 114,723 3,733,888 49,214 100,376 (8,862) 5,000,000 302,502 787,808 (462,120) (2,910,615) (2,359,223)

9

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

1. Community Development Block Grant                                                                  $      959,680
2. Community Development Block Grant            (1,180,253)
3. Community Development Block Grant            (5,503,321)
4. Community Development Block Grant      

Office of Emergency Management            (101,474)

OEMC            2,021,122

DCEO Grant            718,361

OEMC            (2,836,989)

OEMC            (9,894,409)

OEMC            (6,810,505)

Federal/State Transportation Project            9,712,067

OEMC            4,801,699

Federal/State Transportation Project            5,646,472

Federal/State Transportation Project            2,575,351

OEMC      

Wacker Dr. Congress Parkway            (7,959,926)

OEMC            750,090

OEMC      

DCEO Grant            334

DCEO Grant            76,818

DCEO Grant      

DCEO Grant            50,776

DCEO Grant      

DCEO Grant            50,000

Holding Account For Cash Match            383,650

Led Conversion Program            1,631,975

Southwest Area High School Infrastructure Improvements            2,491,403

USDA            (197,980)

Electrical Wiring West Wilson Avenue Wolcott To Hermitage            200,000

Electrical Wiring & Design Engineering @ Cyrstal - Cicero To Lavergne            123,027

Irving Park Streetscape DCEO Grant            6,250

6Th Ward-Residental Lightening-DCEO            25,000

69Th Street Racine to Ashland      

Chicago Climate Action Plan      

WIA (Youth)            (1,199,635)

America's Promise - Alliance for Youth            67,457

CHA Summer Nutrition and Youth Development Program            395

Transfers

In

Out

Receipts Including Settlements

Between Funds

Disbursements Including Settlements

Between Funds

Balance in Treasury Dec. 31, 2012

(Overdraft)

$

$

60,963 2,253,601 17,111,892 31,681,658

1,422,256 5,510,430 5,455,868

11,450,840 8,008,089

103,321 33,005,087

591,288 472,219

441,408

7,968,493

91,948 905,838 12,564,339 16,683,011

600 1,896,342 9,584,486 20,744,325

12,966,456 8,576,157 2,701,063 25,000 74,229,203 175,200 314,767 452

49,837 121 48,070

39,750 878,170 298,662

95,105 25,000 3,600 39,704

5,534,275

511,769 1,846,649 1,038,220

1,819 274,684 77,250 124,042

187,000 500,000

338,492

2,344

119 150 220 267 121 35

45,483 1

30,000 3,171

1,184,272 20,828,023

274,684

626,899 3,306,577 2,410,000 8,236,330

162,152

441,813 37,940

2,088

40,803

318

33,805 1,142,680

928,695 679,279 (293,391) (4,791,156) (101,474) 1,746,438 719,580 (3,036,391) (14,518,114) (25,281,497) 7,302,067 (4,763,247) 5,416,252 (125,712) (25,000) (49,221,982) 577,234 (316,855) 1

36,165 220 1,206

1,965 974,938 2,064,444 1,658,398 (55,234) 200,001 27,922 (18,750) 21,400 (73,509) 30,000 95,074 67,457 395

11

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

CHA - Family Support Service Program                                                                       $      (976,050)

Domestic Violence Special Project            (47,742)

Illinois Early Hearing Detection Program      

Office of Justice Pag            1,604

Mayor's Office Prisoner Reentry Initiative Program            37,062

JAG Effective Oct. 2005            54,163

National Explosive Effective 2005            (543,699)

Aging Federal Public Health            (3,703)

Dept. of Environment - Federal Program            (8,479)

Fire Dept. - State Grants            (3,383)

Aging Department - Federal Grant U.S. Department of Transportation            (84,313)

Jag Effective Oct. 2007            21,402

Department of Environment - Federal Grant U.S. Department Of Transportation            (35,235)

Department of General Services - Federal            8

Department of Environment - Feereal Grant: U.S. Environmental Protection Agency            142,990

Department of Police - Federal Grant: Department Of Transportation            505,711

Department on Aging - Federal Administration On Aging            8,117

Department of Police - Federal Grant: U.S. Department Of Justice            919,430

Department of Consumer Services - State Grant: IDCEO            537,899

Animal Care And Control - Private Grants            169,783

MOWD - WIA Adult & Dislocated Worker Grant            617,959

Independent Police Review Auth - Private Grants            1,359

Federal Grant: Us Department of Justice-2008 Edward Byrne Memorial (Jag)            143,097

Department of Environment State Grants            (261,855)

Dept of Com Dev - Us DOL Grants            8,419

DCD - Federal - WIA Program            3,187,957

DFSS - Federal - DFI/Title XX Grants            132,433

DFSS - Federal - FGP/SCP            (230,880)

DFSS - Federal - Title VPG            69,900

DFSS - State Dept on Aging Grants            697,871

Department of Police - Federal Grant: U.S. Department Of Justice            1,834,703

DFSS - Federal - Area Aging Program            1,443,277

DFSS - Aging Private Grants            262,371

CPD - 2009 JAG Grant            184,994

Fire Department - Us FEMA            (2,520,097)

Department of Law - Private Grants            (19,474)

Department of Police - Federal Transit Security Grants            (6,673,964)

12

In

Receipts Including Settlements

Between Funds

$

1,257,271 120,116 10,950

1,862,969 104,292 109,725

35,500

219,523 391,312 10,746 694,150 275,000

351,354

224,240 91,004 1,070 1,110,955 645,742 397,432 1,861,492 61,620 16,343,069 221,278

9,791,047

Disbursements Including Settlements

Between Funds

$

127,175 129,137 10,950

54,239

50,376

20,000

234,804 48,315 21,492 1,014,539 8,530

351,354

5,000 228,718

38,376 1,303,101 10,578 230,366 1,645,221 283,792 8,221,104 193,432 50,894 380,109

4,673

Transfers

42,620 $

1,022

139

5,246

1,026 112,702

919 412 720 225,748 156,763 383,235 19,025

1,763 603,184

2,000 472 133,600

294,163

Out

400,203 3,469

241

398,086 890

203,180 543,400 1,026 372,356 163,425

25,204 74,240 124,573 2,937,376 95,351 771,997 372,434 876,490 288,772 6,124,411

60,816

4,898,083

Balance in Treasury Dec. 31, 2012

(Overdraft)

S (203,537) (60,232)

1,363 37,062 946 921,184 100,589 49,980 (3,383) (84,313) 1,541 265 8

(70,225) 305,308 (2,629) 339,387 640,944 169,783 617,959 1,359 113,812 (340,161) (24,430) 439,023 1,699 15,522 (116,443) 37,652 1,325,522 4,044,015 292,217 73,756 (2,766,606) (19,474) (1,491,510)

13

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

DFSS - Federal - Other WIA Programs                                                                           $      (3,870,163)

DFSS - Federal/HUD - Aging Programs            (162,074)

High Speed Internet F. Y. 09/10            (2,462)

DOIT - Health Information Technology Coordinator Grant            (352,761)

Chicago Public Library - Federal Grants            748,676

Chicago Police Department - 2007 Transit Security Grant            (535,367)

Police Department- F. Y. 2010 Edward Byrne Memorial Justice Assistance Grant            1,005,124

DFSS - Dept of Veterans Affairs - FED      

Department of Environment - National Endowment For The Humanities      

Department of Environment - U.S. Department Of Agriculture - Forest Service            10,339

Senior Programs - Private Contributions            257,813

Department of Cultural Affairs - National Endowment For The Arts            (145,230)

DFSS - Dept of Justice Grants      

Department of Environment - Us Dept. of Housing And Urban Development      

Department of Police - U.S. Department of Justice - 2011 Justice Assistance Grant.

Department of Police - U.S. Dept. of Justice Cops Hiring Program Fy 2011      

IGA Resident Svc Case Coordination BFY 11      

Mayor's Office Bloomberg Grant            1,318,023

Department of Cultural Affairs and Special Events - Private Grants      

Department of Cultural Affairs And Special Events - State Grants       (42,800)

Department of Police - F. Y. 11 Justice Assistance Grant      

Department of General Services - IDCEO Natural Gas Efficiency Projects Grant #12540004

Department of General Services - IDCEO Electric Efficiency Projects Grant #12420011      

Chicago Public Library - IDCEO Edgewater Branch Grant #11203168       37,500

ARRA/DOIT - ARRA Broadband      

ARRA-lmmunization Children/Adults      

ARRA-Emergency Contingency Fund (TANF)            (12,520)

NSP3      

Police Department - ARRA - Byrne/JAG Program            1,666,715

CPD - ARRA - Cops Hiring Recovery Project            101,324

OEMC      

Arra JAG ICJIA Police Equipment/Fed            (1,325,763)

Police - ARRA Rail and Transit Security Grant Program       (2,200,019)

Police - ARRA Campaign To Break The Code Of Silence            1,275,165

CFD - ARRA - Firefighters Fire Station Construction            (1,456,263)

ARRA - CPD - Arra Arc Community Partnership Youth Grant       5,854

Department of General Services - ARRA Thermal Efficiency For Public Facilities      

14

Transfers

In

Out

Receipts Disbursements Including Settlements   Including Settlements

Between Funds      Between Funds

Balance in Treasury Dec. 31, 2012

(Overdraft)

$

15,545,272 $

2,504,469

102,169 2,692 5,016 476 476 476 833 833 833 288,136 569,126 309,100

4,102,442

2,439,177

3,878,119 400,333 994

10,898 4,320,462

1,464,909 114,738

11,356,007 $

956,431 3,500 791,964 134,643 148,782

12,386 101,575

18,755 137,822

274,560

254,024 1,313,708

150,000 3,878,119

358,348

219,969 1,145,906

58,200

108,410

2,938,737 11,049 172,385

2,806,897 $ 176,293

393,453

536,362 2,937

16,752 145,230

202,381

42,800

1,325,763 1,341,906 2,445

2,255,718

3,699 315,335 996,840

9,717

2,830 43,050

311,658 776,337 72,228 50,000

39,283 294,716 4,567,693

1,111,003 1,407,303

14,792

870,281 14,219 (2,462) (919,438) 429,841 716,660 873,418 (56,330) 2,692 139 130,416 476 476 833 833 833 178,859 1,092,057 99,050 (50,000) 3,827,882 (254,024) 1,125,469 (112,500)

2,702 (11,526)

(514,685) 531,707

(145,907) (58,200)

(612,617) (14,955) (4,395,000) (19,987)

(172,385)

15

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan.1,2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

ARRA/Sheriff s Re-EntryAA/est Side                                                                               $      (40,000)

Arterial Street Resurfacing Project* 47, 48, 49, And 50 Stimulus Funding            (3,990,068)

Chicago Ave. Improvement From Grant To Laramie, Cdot Project #B4133            (826,772)

Environment - ARRA - Urban and Community Forestry Program            (364,148)

OBM - ARRA - U.S. Dept of Energy            (864,815)

DOE - ARRA - Chicago Area Alternative Fuels Deployment            (3,446,197)

ARRA - Environment - Local Energy Assurance Planning Initiative            (36,298)

DOIT - ARRA PCC Smart Chicago Public Computer Centers            726,254

Formula WIA Youth Stimulus Funding      

WIA Adult Dislocated Worker - ARRA Stimulus Funding            (380,270)

Neighborhood Stabilization Program (NSP), Stimulus Funding            (613,688)

FSS - ARRA - OAA Nutrition Program            3,892

ARRA-C.S.B.G            14,961

ARRA - Homeless Prevention & Rapid Re-Housing            (2,287,673)

CDBG - R Program            (523,593)

Neighborhood Stabilization Program 2            (1,345,184)

ARRA Headstart Expansion            (457,955)

ARRAAA7IA On Job Training            (1,902)

ARRA Headstart Cola & Quality Improvement            37,626

ARRA - Chronic Disease Nutrition Project (Go Slow Whoa)            108,782

ARRA - Chronic Disease Self-Management Program            (25,674)

ARRA Ed Byrne Jag Youth Outreach Program            (136,941)

ARRA Early Learning Mentor Coaches            (34,975)

Chicago Low Income Housing Trust Fund            282,678

Local Tourism & Convention Bureau            (643)

Congestion Mitigation & Air Quality Improvement            (4,184,918)

Trans Planning Program St F. Y. 1993            34,776

Improvement of 63Rd Street Between WentworthA/ernon            75,915

Intermodal Surface Transportation Program            (1,685,713)

Greenstreets Program            (120,926)

Home Investment Partnerships Program            (5,741)

Public Works - Transportation Capital Project            62,234

West Side Stadium            227,728

Traffic Signals Modern Project            297,297

Public Works - Bridge Maint Pr            (1,834,797)

Prelim Eng Demon Projects            (790,637)

1999 CDBG Year XXV Program            73,532

16

Receipts Including Settlements

Between Funds

$

18,640,906 2,218,847 246,899 1,013,590 5,383,911 7,572 2,003,194 5,369 6,657 6,366,416

486 6,106,828 6,511,007 43,310,415 590,764 78,396 1,835

256,017 79,312

10,646,277

Disbursements Including Settlements

Between Funds

$

22,536,050 2,354,312 2,000 2,823,545 5,979,864 108,806 2,245,281

66,719 9,500,157

4,004,845 5,627,762 41,796,195 124,914 245,650

108,782 76,426

100,872 40,076

3,536,230

115

39,658 92,198

Transfers

In

40,000 $

3,396,143

30,226 1,824

51,989 629

2,410,000

97,100

Out

2,641

746,745

445,701 241,624

551,068 1,136,597 7,609

3,051 18,204 4,262

71,420

30,226

168,092

Balance in Treasury Dec. 31, 2012

(Overdraft)

$

(7,887,853) (962,237) (119,249) (25,372) (4,042,150) (107,306) 40,290 5,369 (681,956) (3,695,440) 3,892 16,076 (185,690) (191,416) (967,561) 293 (169,156) 39,461

(105,151) (D

282,678 (643) 5,263,709 34,776 75,915 (1,716,054) (23,826) (5,741) 62,234 227,728 297,297 (2,042,547) (882,835) 73,532

17

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1,2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

Human Services - Aging Program                                                                              $      8,434,273

Transportation Housing For Homeless Families            (5,453)

Museum of Science 8c Industry Parking Project            360,170

Underground Storage Tank Program            690,276

S.B.A. Tree Planting Grant            10,771

Chap-CDBG 2006            (987,123)

1998 CDBG Year XXIV Program            94,092

Group "A" Preliminary Engineer            (240,487)

Home 93            (30,423)

Bicycle Rack: Phase II Pur Installment            (170,022)

Health - Miscellaneous Health            5,100

DHS - III Violence Prevent Authority            5,301

Audit Costs            (1,299,084)

Portage Park Incremental Tax/Gen. Fund            13,114,021

Read Dunning Incremental Tax            8,378,763

Roosevelt Homan Incremental Tax            7,836,033

Sanitary & Ship Canal Incre Tax            1,512,520

Michigan 8c Cermak Incrmtal Tax            3,763,630

95Th & Stony Island Incrtal Tax            2,879,292

Home 94            187,500

Archer/Central Incremental Tax Fund            2,794,740

Human Ser DHS State Other Program            6,625

Energy Conservation Program            60,731

Prelim Engineer FAUS (1984)            32,482

Dept of Health Holding Fund            (9,991,748)

Chicago Shoreline Protection Project            (15,414)

Recycling Educational Support            (63,590)

Rapid Transit Stations Reconst            (177,415)

Health - STD Control Program            (41,234)

Cicero/Archer Incremental Tax Fund            6,453,415

CPL Construction Grants - ISL            666,612

Eastman/North Branch Incremental Tax            1,675,902

Homan/Grand Trunk Incremental Tax Fund            2,787,228

72Nd And Cicero Incremental Tax Fund            2,661,897

73Rd And Kedzie Incremental Tax Fund            424,827

Urban Development - II Master Loan Agreement            2,945,783

95Th And Western Incremental Tax Fund            3,504,745

18

Disbursements Including Settlements

Between Funds

403,491 1,625,008 1,649,146 453,591 610,478 604,894 830,600

300,023

280,851 434,060

274,000 496,000 458,000 69,000

157,952

Receipts Including Settlements

Between Funds

565 $

137,500

160

2,434,581 1,536,197 910,855 6,606 1,063,648 1,035,589

691,037

1,994,201 787,702

160,883 259,592 257,614

859,688

Transfers

In

34,916 3,783 4,000,000

5,995

15,281

3,950 6,712 6,362 1,082

8,364

Out

148,766

94,155 37,122 17,700 14,036 17,066 11,678

12,189

1,504,911 10,512

3,020 2,964 3,613 290

11,883

Balance in Treasury Dec. 31, 2012

(Overdraft)

$ 8,434,838 (5,453) 360,170 679,010 10,771 (987,123) 94,252 (240,487) (30,423) (170,022) 5,100 5,301 (1,702,575) 13,864,355 8,228,692 8,279,380 894,612 8,205,318 3,072,603 187,500 3,179,560 6,625 60,731 32,482 (9,991,748) (15,414) (63,590) (177,415) 167,205 6,811,826 666,612 1,563,715 2,554,568 2,464,260 356,619 2,945,783 4,202,962

19

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

Home Investment Partnership 2002                                                                            $      (136,300)

Title IIC-Youth            (341,800)

City's New Green Infrastructure            1,084,046

DHS Emergency Shelter Program            (887,464)

CDBG-Year XXIX            231,365

Home Investment Partnership Program            175,422

Title IIB-Summer Youth            5,484,611

Dental Sealant Grant Program            255,997

126Th and Torrence Incremental Tax Fund            1,282,699

SW Industrial Corridor East TIF            2,600,132

Aging - Privately Funded Programs            327,767

Budget Office Grant Management            (1,084,022)

Human Services - Aging Department            805,868

Dept of General Services Prgms            853,759

Inactive Environmental Control            (32,069)

Inactive Human Services            712,341

HUD Section 108 Loan Guarantee Program            3,508,656

HUD Section 108 Loan Guarantee Program            915,171

DPD Restricted Deposits            235

Dept on Aging - State Programs            1,099,277

Domestic Violence-Private Program            379,953

41 St & King Drive Incr Tax Fund            848,790

Chicago International Conservation Code            120,448

1997 CDBG Year XXIII Program            (6,662)

Home 97            251,296

Joint Comm Development Project Grant            9,742

Belmont/Cicero Incremental Tax Fund            3,375,896

Near North Incremental Tax Fd            42,995,623

51 St/Archer Incremental Tax Fund            5,881,554

Chicago Homeowner Assistance Prgm            521,864

Addison Corridor No Incremental Tx Fd            8,663,398

Peterson/Cicero Incremental Taxes Fd            1,338,684

60Th And Western Incremental Tax Fund            3,578,075

Commonwealth Edison Settlement            2,649,225

North Branch-South Incremental Tax Fd            31,505,462

South Chicago Incremental Tax Fund            5,417,105

South Works Indust IncrementalTax Fd            1,070,626

20

Transfers

In

Out

Receipts Disbursements Including Settlements   Including Settlements

Between Funds      Between Funds

Balance in Treasury Dec. 31, 2012

(Overdraft)

$

$

5,952

2,175,443 8,938

72,143 730,409 709,546

1,166,271

14,544 6,774

30,600 174,453

1,009,899 218,261 501,680 16,417

1,525,427 375,918 384,322 653,264

5,478,890

1,920,791 78,964

2,479,675

16,186 576,182 502,001

103,951

26,326

61,175 130,000

458,917 6,440,820 32,417

1,069,840 179,497 429,000

7,845,047 637,297 185,000

5,700

2,224 5,556

1,214,598

1,967

8,508 86,110 13,268

1,283 22,322

3,070

8,812

75,922 11,606 2,563

1,773,618 16,284

1,817 11,304 14,956

958,086

12,600 2,294

35,064 211,107 18,099

19,725 5,595 2,197

624,920 18,189 1,653

(136,300) (330,148)

1,084,046 (2,965,314) 224,019 175,422

5,484,611 310,137

1,427,846

2,798,277 327,767 (931,461) 805,868

1,993,704 (32,069) 712,341

3,523,200 921,945 235

1,099,277 336,778 892,916 120,448 (6,662) 251,296 9,742

3,900,322 36,648,067

6,345,986 539,564

9,121,582

1,532,580

3,540,012

3,302,489 28,590,307

6,694,016 965,500

21

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

Chicago/Kingsbury Incremental Tax Fd                                                                        $      29,515,722

Central Loop Incremental Tax            19,580

Pilsen Arealncremental Tax Fund            22,944,466

Roosevelt-Canal Incremental Tax            2,181,540

Division-Hooker Incremental Tax            1,896,269

Irving-Cicero Incremental Tax            899,235

West Grand Incremental Tax            265,204

Bryn Mawr-Broadway Incremental Tax            8,742,774

Spec Serv Area 7 Project Fund            17

Central Lakeview SSA #17            (1,440)

North Halsted SSA #18            1,440

Goose Island Incremental Tax            6,026,231

Meigs Land Support            34,383

Lawrence-Kedzie TIF Incremental Tax Fund            17,068,576

Lincoln Square SSA #21      

Bronzeville Incremental Tax Fund            16,199,486

South Western Avenue SSA #20      

Woodlawn Incremental Tax Fund            12,161,465

Near South 99A8CB General Fund            144,485,466

Stockyards SE 96B General Fund            8,867,406

Western Ave North Incremental Tax Fund            19,013,605

49Th and St.Lawrence Incremental Tax            2,264,522

Special Revenue Adjustment Fund            (355,384)

Stockyards Annex Incremental Tax Fund            14,333,515

River South Incremental Tax Fund            41,891,187

Special Serv Area 11 Maint Fund            73,312

Kinzie Industrial Conservation TIF            47,442,882

35Th & Halsted Incremental Tax Fund            21,556,737

63Rd/Pulaski Incremental Tax Fund            6,195,214

Greektown/Halsted St. SSA #16            389,089

Ohio/Wabash TIF Incremental Taxes Fund            1,340,913

Joint Community Development Program            345,101

Brownfields Cleanup Revolving Loan Fund            136

Child Safety Seat Program            (106,636)

HOPWA/HUD Program            609

Cultural Affairs - State Programs            55,025

Central West Incremental Tax Fund            57,296,202

22

Receipts Including Settlements

Between Funds

$

Disbursements Including Settlements

7,841,806 13,680,000 3,384,165 1,221,163 287,000 401,070 38,000 1,323,435

Between Funds

14,989,797 $ 13,680,000

1,048,151 174,982

40,064 2,007,097

947,170

3,627,042

5,902,158

1,558,840 4,979,293 1,124,000 3,483,988 376,000 542,914 966,777 1,785,735

11,712,873 2,315,991 734,500 400 1,328,693

23,137

2,250,969

6,751,145 50,371 3,841,322 33,148 2,776,193 1,125 2,102,479 4,753,307 474,293

1,254,007 17,162,244

33,551,682

17,718,231 5,122,151 2,276,880 62,096 1,236,867

14,804,216

Transfers

In

67,392 $

70,535

4,418

4,535

2,808 581 19,281

14,955

12,843

2,500,000

189,128 213,624 16,589 44,483 5,285 570,422 146,256

131,757 17,814 6,235

13,611,006

Out

183,433

225,758 13,441 2,493

823 30,107

57,374

147,691

52,770

40,913 796,713 25,787 98,121 5,408

3,988,776 202,770

333,151 183,213 38,081

188,030 308,613

Balance in Treasury Dec. 31, 2012

(Overdraft)

$ 36,547,672 19,580 19,405,078 1,999,505 1,786,293 500,973 267,026 9,415,610 17 21,697 1,440 7,287,611 34,383 20,057,831 50,371 16,585,880 33,148 13,527,033 138,924,209 9,836,687 20,229,286 2,362,692 (327,876) 10,778,225 57,064,926 73,312 53,246,846 24,179,684 7,717,327 450,785 1,255,322 345,101 136 (106,636) 609 (133,005) 51,851,129

23

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

Senior Citizens Nutrition & Social Services Program                                                         $      284,214

Local Tourism & Convention Bureau            25

Various IDPH Programs            1,233,879

CSBG Revolving Loan Fund - 1996            1,499,103

Bank Part Loan Clearing Acct            60,418

Illinois Housing Partnership Program            2,016,247

Reallocated Metro-Discretionary Block Grant            327,423

Loan Reserve Account            467,179

DOH Private Support Grants Fundd            16,212

Chicago Public Library Program            453,584

DOH Mental Health Grants            1,685

Public Safety Program            (629)

Local Law Enforcement Block Grant Program            12,217

DOH Health Promotion Grants            33,580

Capital Outlays Rapid Transit Program            (184,523)

CDPH Non-Federal Miscellaneous Programs            (621,536)

General Govt Workmens Compensation Program            11,453,785

Emergency Management Agency Grant            (288,050)

Health - Mental Health Program            13,093

Health-Communicable Diseases            836,203

Great Chicago Places & Spaces            53,335

Local Law Enforce Block Grant Yr-6            30,306

Private Donations Program            (240,540)

HIV Child/Maltrtment Prevention Grants            1,473

Public Works Roadway/Highway Progrm            (241)

Public Works Transit Studies Program            17,935

Health - Public Health Program            (688,447)

Immunization And Vaccines For Children            (752,330)

CDPH Lead-Based Paint Hazard Control Program            (381,765)

Health - Public Health Program            540,186

Health - Substance Abuse Program            149,170

Enviromental Control Program            1,594,652

Culture & Recreation-LIB & MIS            105,139

Human Services DHS Food Program            200,400

JTPA Title MA Adult Training            14,982

JTPA IIIA-Econ Dislocated Workers            500

Human Services JTPA Program            34

Transfers

In

Out

Receipts Including Settlements

Between Funds

Disbursements Including Settlements

Between Funds

Balance in Treasury Dec. 31, 2012

(Overdraft)

$

$

565,955 448,324 314,273 9,000

319,308

6,464,134 3,890,872 438,808 129,681 34,000

10,310 400,898

78,392

113,144 1,151,359

1,145,634 454,928 233,698

473,966

5,445

118,063 1,482,923

235,127 94,478

503,811

100

296,938 313,597 60,418

137,756 196,018

4,625,955 2,426,802 6,952 146,822

95,468

278,876

284,114 25

1,424,504 1,639,275 314,273 2,025,247 327,423 467,179 16,212 453,584 1,685 (629) 12,217 33,580 (184,523) (435,065) 11,589,331 (288,050) 13,093 836,203 53,335 30,309 (240,540) 1,473 (241) 17,935 239,225 351,290 (183,607) 523,045 183,170 1,499,184 115,449 352,267 14,982 500 34

25

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

Human Serv Aging & Disability                                                                                  $      366,784

JTPA Title MIN            24,677

Title 11B JTPA Summer Youth Program            13,037

Human Services Program            4,694,404

Chicago Traffic Records System            (262,226)

Urban Development-City Program            487,186

Roosevelt/Racine Incremental Taxes Fund            3,783,831

Urban Development HODAG Program            356,321

Urban Development - Deposits Program            63,095

Dept Hous Surety Investment Account            266,021

Urban Development Action            72

Pavement Restoration & Inspection Fund            3,708,784

Dept. of Housing Rental Rehab Program            34,344

Dept. of Housing General Ledger Invstment Account            415,912

Dept Hous Surety Savings Account            1,352

Human Services Aging and Disability            796,642

City Blocks Program Housing Facade            37,118

Vehicle Tax Fund            (228,093,458)

Vehicle Tax License Collection            208,921,047

Construction Program Interstate TRF PJ            129,328

II 5 Yr Plan For Nonfed Aid PJ            998,324

Stockyards Ind Park Area SSA13            5,351

Homan-Arthington Incremental Tax Fund            4,829,107

Motor Fuel Adjustment Fund            14

Motor Fuel Tax Fund            (298,969)

FHWA Const Project FAUS Projects            (634,221)

State Grant Vector Program            (1,433,155)

Peterson/Pulaski Incremental Taxes Fund            5,659,889

Commun Dev Blk Gt Gp Yr XVIII            (116,367)

Belmont Central Spec Ser Area2      

Community Development Block Grant Program - Yr XVI            1,258

Spec Serv Area No. 1 Maintenance Management            (646,054)

West Ridge Peterson Tax Incremental            831

63Rd St Commu Spec Ser Area 3            170,748

Community Development Block Grant Yr XVII            11,021

So Chicago Development Community Spec Ser Ar 5            204,779

89Th/State Incremental Tax Fnd            468,288

26

Receipts Disbursements Including Settlements   Including Settlements

$

Between Funds      Between Funds

152,017

922,245

247,546 7,142

$

262,324

1,549,896 4,551,117

19

47,013,608

260,044

129,601,568

174,421

23,887,334

421,440 109,669

307,403 543,438

36,969,517

651,490 626,782

136,943

132,075 707 144,457

443,288

309,670 367,371

Transfers

In

7,692 1,744

1,026 18,212,594

16,022

150,211 13,524

791

Out

21,536 4,907,438 3,488

283,914

1,026 70,629,487

14,521

7,758,777

183,984 31,509

4,980

Balance in Treasury Dec. 31, 2012

(Overdraft)

$ 366,784 24,677 13,037 4,694,404 (151,919) 487,186 4,397,638

(186,195) 258,898 72

3,708,784 10,474 415,912 1,352 796,642 37,118 (197,922,391) 208,921,047 129,328 998,324 312,754 5,199,625 14

5,024,437 (634,221) (1,236,878) 6,159,017 (116,367) 136,943 1,258 (513,979) 1,538 315,205 11,021 514,449 388,182

27

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

Lakeview East Spec Ser Area 8       $

Edgewater Redevelopment Tax Incremental Fund            412,491

Andersonville SSA #22            20

Back of The Yards Business SSA No. 10            20,965

Lincoln-Belmont-Ashland Tax Incremental Fund 1998A            72,328

Human Services - US DHUD Programs            (275,164)

Pub Library Buildings & Sites            2,407,316

Chicago Public Library Maintenance and Operations            (11,387,166)

Chicago Chinatown Redevelopment Tax Incremental            53,662

Howard-Paulina Redevelopment Tax Incremental            4,745,799

Dept. of Cultural Affairs Activities            (275,837)

Local Health Protection Program            (338,761)

Emergency Communication Fund            19,160,913

Municipal Hotel Motel Operators' Tax            8,055,686

Mayor's Office of Special Events Festival 87            (2,520,620)

West Irving Park Incremental Tax Fund            5,781,129

Englewood Mall Redevelopment Tax Incremental            4,969,922

Division/North Branch Redevelopment Tax Incremental            490,715

Madison/Racine Area Red Tax Increment Fund            38,557,188

Public Works - Federal Highway Bridge Program            (1,086,253)

Stony Island/Burnside Incremental Tax            7,953,065

StateA/an Buren Elevated Transit Station            (29,214)

Public Library Service State per Capita Grant            (53)

SW Indust Corridor West TIF            9,638,065

Land Support Discretionary Fund            (5,581)

Motor Fuel Tax - 1990 Project            82,114

Health - TB Control Grants            (198,188)

Program Income Expenditures Mayor Office Employment 8iTraining            30,107

Preliminary Engineering Various Bridge Improvements            (512,912)

Build Illinois Public Works Projects            (2,671,206)

Archer Courts Incremental Tax Fund            1,607,244

71 st & Stony Island Incremental Tax Fund            9,613,977

Marquette Park SSA #14      

Stockyards 1996A General Fund            4,864,151

North/Cicero Incremental Tax Fund            2,097,816

Jefferson/Roosevelt Incremental Tax Fund            11,549,058

Preliminary Project Engineering Program Int. Tr            11,773

28

Receipts Including Settlements

Between Funds

$

10,188 282,384 54,004 19,872

11,048 1,787,334 8

1,303,538

3,107,059 42,156,450 21,877,948 1

865,226 405,335 247,501 13,856,722

2,545,319

639,918

1,307,812

164,579 298,946 3,185,053 1,894 2,001,488 1,085,874 4,773,076

Disbursements Including Settlements

Between Funds

$

48,681

2,957,115 12,861,535

871,441 48,477 171,100 14,481,248 17,909,542 11,423 682,366 568,850 30,000 3,000,217

2,945,800

1,217,035

2,000 29,670

4,636,242 227,756 164,402

175,567 549,943 1,100,786

Transfers

In

199 208

14,360,770

89,094 18,926,356 122,228 3,450 13,280

908

41,583

24,556

15,971

3,899 24,011

3,090 4,474 32,719

Out

42,113,483

17,848

1,451,054 29,993,180 4,831,054

15,366 4,865 3,935 13,621,270

38,335 118,094 1,064,320

4,140 51,726

28,572 13,424 59,850

Balance in Treasury Dec. 31, 2012

(Overdraft)

$ 10,188 694,875 54,024 40,837 23,846 (275,164) (538,543) (50,214,080) 53,670 5,160,048 (324,314) 1,235,238 35,769,291 7,315,266 (2,528,592) 5,961,903 4,801,542 705,189 35,792,423 (1,086,253) 7,555,832 (29,214) (53) 8,967,410 (5,581) 80,120 31,605 30,107 (512,912) (7,142,869) 1,678,193 12,606,913 1,894 6,664,590 2,624,797 15,194,217 11,773

I

29

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

Epidemiology & Lab. Capacity Grant                                                                           $      (157,629)

Clark/Montrose Incremental Tax Fund            8,797,642

Galewood/Armitage Industrial Incremental Tax            11,383,578

Devon & Western Incremental Tax Fund            7,956,132

NW Industrial Corridor Incremental Tax Fund            19,028,239

Special Service Area # 7            89

Roosevelt/Union Incremental Tax Fund            9,350,815

West Pullman Industrial Park Construction Incremental Tax Fund            72,478

Lincoln Avenue Incremental Tax Fund            6,668,707

Clark & Ridge Incremental Tax Fund            9,767,171

35th & Wallace Incremental Tax Fund            3,029,559

111 th & Kedzie Incremental Tax Fund            2,529,641

Madison & Austin Incremental Tax Fund            8,835,133

CDHS HUD Administration Support Fund            90,531

DOH Aids Grants            (287,642)

CDPH Federal Grants            79,961

Health - Public Health Program            365,884

DOH Refugee Programs            137,713

DOH WIC Grants            1,320,010

DOH Mch Block Grants            55,284

24th/Michigan Ave. Tax Incremental Fund            9,030,787

Local Law Enforce - Segregated            95,838

Asian Beetle Eradication Prgm            1,371,957

DOH Family Planning Grants            (141,644)

Chicago Montclare Incremental Tax Fund            819,770

Chicago Shoreline Protection Project            1,129,820

HOPWA Program            (2,215,673)

JTPA Title MB - Summer Youth            94,590

DHS-Child Care Services            (848,115)

IDCFS-Child Care Services            252,678

Illinois Housing Development Authority (IHDA) Trust Fund            (850,488)

Dept On Aging - Local Grants            296,925

Highway Railroad Improvement Projects            (1,560,957)

DOH other Misc Grants            433,416

DOH Mental Health Grants            (562,038)

DOH Intervention And Drugs            62,054

State Road Improvement Project            (9,944)

30

Receipts Disbursements Including Settlements   Including Settlements

80,518 1,417,953 1,725,753 1,344,124 829,818

8,684,030 33,490 447,013

2,753,599 307,911 309,542 462,912

18,613,255 5,477

1,522 808,263 358,240 4,863,285

Between Funds      Between Funds

$

$

791,272 2,518,558 2,713,531 2,632,924 5,966,813

4,185,021

2,535,676 1,939,189 725,088 639,047 1,831,726

21,422,433 244,299

423,243 2,646,485 2,900,729 1,019,613 9

367,138 3,494,490 22,615,220

1,181,367 1,985 125,192 489,933

291,325 5,105,438 24,899,810 60

609,709

1,487,862 551,691

Transfers

In

193,932 19,776 25,664 25,884 49,256

17,995 228

17,208

22,134 6,564 5,895

19,491

66,549

145,502 21,075 76,513

1,901

1,042,935

26,316

Out

780,042 35,793 49,156 61,683

152,839

52,233 11,036 40,868 46,648 10,201 8,567 31,620

2,010,546 135,981

301,669 2,794,331 2,797,984 16,744

4,070 188,374 2,651,411

106,482 1,246,619

Balance in Treasury Dec. 31, 2012

(Overdraft)

$ (32,985) 9,882,230 12,347,864 9,209,133 24,061,651 89

4,817,568 28,180 8,733,710 8,928,247 3,443,099 2,856,474 10,191,818 90,531 577,539 182,802 365,884 257,765 363,901 (54,709) 5,191,446 172,360 1,371,957 (141,644) 741,788 1,129,820 (793,099) 94,590 (172,001) 252,678 (850,428) 296,925 (2,239,097) 431,431 (419,671) 123,812 (9,944)

31

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan.1,2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

Illinois Bicycle Path Grants                                                                                       $      (3,886,819)

Donated Funds Initiative Pgm            24,309

Tobacco Enforcement Grant Program            308,869

US HUD Home Investment Partnership Program            96,351

J Lloyd Armstrong Income            56,548

Jonathan Burr Income            1,129

Clarence Buckingham Playground            162,435

Posters & Brochures Special Events            372

People with Disabilities Program            256

Cumberland P & R Levels 3 & 4            (134,674)

Samuolis - Greater Lawn Center            8,890

Midwest Redevelopment Incremental Tax Fund            27,630,760

Federal Airport Project - Meigs Field            44,187

Harrison And Tree Income            4,540

Community Development Block Grant Yr. XIX            43,203

Traffic Signal Modernization            (4,616,488)

Fullerton/Milwaukee Incremental Tax Fund            14,113,907

Local Law Enforcement Block Grant            140,575

Public Building Commission            (30,200)

Police Life Health Insurance            83,874

Chicago Street Resurfacing            (1,107)

Midway Industrial Corridor Incremental Tax Fund            4,217,050

Federal Asset Forfeiture Community Sharing            350

Treasury Federal Asset Forfeiture            713,684

Police Activities Miscelaneous            2,414,041

City Relief Fund            (443,330)

Chicago Street Resurfacing Project            (241,197)

MCPIER Departure Tax Fund            814,467

Mayor's Office of Special Events Program            179,211

Municipal Employees A & B Tax Levies            998

Laborers A 8c B Tax Levies            34

Policemens A 8c B Tax Levies            1,015

Firemens A 8c B Tax Levies            417

Comminity Development Block Grant 1994            115,860

Urban Corps Exp. Project Plan Grant            (4,764)

Illinois Dept. of Transportation: Operations            615,251

Violence Prevention Project            56,645

32

Receipts Disbursements Including Settlements   Including Settlements

806,798 $

$

Between Funds      Between Funds

1,298,865 $

17,054

217

10,000

1,379,916

8,945,982 3,821,499

13,671,244 2,105

166,000

558,876 652,918

5,170,463 6,845,161 11

1,242,878

872,234 1,355,327

1,759,550 371,756

1,859,949 843,726

1,187,169

114,570

679

111,614 48,581

143,419

Transfers

In

260,742 $

72,461

34,976

13,440

45,780 60,898

1,758,553 371,723

1,858,934 843,309

Out

217 10,000

628,984

110,512 140,363

18,749 305,566

1,328,427

114,570

111,614 48,581

82,791

Balance in Treasury Dec. 31, 2012

(Overdraft)

$ (4,118,144) 24,309 291,815 96,351 56,548 1,129 162,435 372 256 (134,674) 8,890 39,365,565 46,292 4,540 43,203 (8,467,543) 16,997,206 140,586 (30,200) 83,874 (1,107) 5,288,619 350 767,256 3,177,348 (443,330) (241,197) 673,209 179,211 1 1

115,860 (4,764)

675,200 56,645

33

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

Public Works-Roadways/Highways State Funding                                                           $      (517,610)

City Home Expo. & Affordable Housing            25,350

MOPD - Federal Grants            (26,044)

Chicago Public Library - Federal Pass            (8,105)

Brownfields HUD Section 108 Loan Guarantee            7

Mark To Market Restructure Program            434,847

Community Development Block Grant - 2004            (68,790)

Chicago Low Income Housing Trust Fund            9,734

Community Prosecution Grant            55,068

Illinois 1St Traffic Signal            (119,196)

HPD-Local Roads & Streets Project            3,968,335

Private Support Grant Program            26,938

Brownfields EDI HUD Section 108 Loan Guarantee            2,500,000

Community Development Block Grant 2000 Year XXVI            170,206

Neighborhood Initiative Grant            (132,122)

Community Development Block Grant Program - Year XXVII            438,680

HUD Youthbuild Implementation            1

Local Law Enforcement Block Grant            23,667

79th Street Corridor Incremental Tax Fund            5,697,638

Public Safety Program 1998            (269,499)

Streets and Sanitation Private Source Fund            82,818

Office of Emergency Management And Communication Program            529,087

Workforce Investment Act (WIA)            (241,722)

Prgm Income Expenditures-MOWD            77,828

Access Living Sub-Grant Agreement            8,601

Human Services Oslad Program            6,792

Canal-Congress Incremental Tax Fund-.            40,927,259

Transportation Planning Grants            (76,015)

Highway Vertical Clearance Improvement Project            (7,170,094)

Calumet-Cermak Incremental Tax Fund            8,744,585

Surface Transportation Program            (77,016)

Surface Transportation Program Engineering            1,888,434

Surface Transportation Program Enhancement-Highway Projects            (143,876)

Illinois Central Air Rights Development / Transfer            (125,964)

North Branch-North Incremental Tax Fund            31,374,097

Chicago Fire Department Programs            4,358,970

43rd & Cottage Grove Incremental Tax            8,870,888

34

Transfers

In

Out

Receipts Disbursements Including Settlements   Including Settlements

Between Funds      Between Funds

Balance in Treasury Dec. 31, 2012

(Overdraft)

$

$

307,415

379

4,398,127

9,378

3

850,369

19,018,797

12,442,668 8,631,464

30,629,016 40,670

4,070,767 2,242,150 2,669,031

9,346,040

1,035,059

4,665,484 1,043,938 8,022,670 10,000 509

52,670,305 6,193

20,176

790,722

13,192

102,443

61,605 18,234

4,246,745 5,510

73,677

19,849

256,995

3,053

3,475,838

12,631

13,057

103

213,756 357,939 117,197 4,099,054 61,605 3,571,067 5,510

102,880

32,409

(517,610) 25,350 24,376 (8,105) 7

434,847 (71,464) 9,734 55,068 (119,196) (4,455,416) 26,938 2,500,000 166,953 (132,122) 438,680 1

23,670 5,513,083 (269,499) 82,818 528,984 (241,722) 77,828 8,601 6,792 55,169,259 (1,477,892) (2,805,688) 13,285,229 (139,130) (19,477,177) (109,399) (125,964) 35,395,485 6,601,120 10,736,637

35

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan.1,2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

Illinois Eliminate Digital Divide Program                                                                        $      56,000

Urban Development UDAG            1,089,366

Human Services Program            373,876

Summer 2001 Youth Grant            21,231

DOH - Healthy Aging Program            4,019

Western-Ogden Incremental Tax Fund            23,689,071

Health - Public Health Program            (191,750)

Home 95      

Cable Communications Personnel            273,084

Roosevelt-Cicero Incremental Tax Fund            12,008,251

1994 Chicago World Cup Soccer Grant            (87)

HUD Section 108 1995 Loan Guarantee Program            315,722

Local Tourism & Convention Grant            109,188

Street Improvement Projects            1,644,819

River Stabilization Program            (51,583)

Futures Kids Summer Yth Employ      

JTPA: Workforce Investment Act            71,739

State Public Library Construction Grant            (1,638,615)

CMAQ - Planning & Development - FTA            (1,893,761)

Central Area Rapid Transit Improvement            1,677,021

Environmental Control Program            26,359

Human Services Private Program            (42,013)

Lead Abatement Grant            91,100

Chicago Public Library - State Grants            230,840

DHS- U.S. Dept of HUD Programs            81,351

Old Virginia & Wo. Transasctions            758,915

Public Safety Program            1,270,823

Group A Preliminary Engineering Projects            (429,451)

EDP Funds-126Th Pl/Torrence Ave            (766,451)

EDP Funds -126Th Pl/Torrence Ave            443,169

Community Development Block Grant Program-Yr XXI            11,370

Home Program Income Account            56,029

Human Services- U. S. Dept. of HUD            (137,934)

MOPD Private Funded Programs            170,626

IDOT Legislative Grant Projects            261,940

Home 98            30,380

JTPA - Title IV Grant            2,925

36

Transfers

In

Out

Receipts Disbursements Including Settlements   Including Settlements

Between Funds      Between Funds

Balance in Treasury Dec. 31, 2012

(Overdraft)

$

$

57,047

7,149,027 1,014,173

2,862,269 198,643

260,450 666,457

56,000 1,089,366 373,876 21,231 4,019 27,772,426 (42,677)

1,859,108

30,143

52,123

442,402

2,251,976 14,024

273,084 12,379,139 (87) 329,746 109,188 1,202,417 (51,583)

65,551

97,250

127,039

237,717

2,951

2,140,805 1,745,729

97,475 303

60,972 102,345 1,633,314

265,960

27,095 1,005,831

500,000 1,433,193 2,387,708

43,918

2,000

112,845 4,518,003

28,207 2,782,645

71,739 (2,138,615) (1,186,149) 969,491 26,359 11,544 91,403 228,840 81,351 758,915 1,331,795 (537,201) (3,524,101) 443,169 11,370 84,272 (137,934) 169,514 (1,511,923) 30,380 2,925

37

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan.1,2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

Community Development Block Grant 2005                                                                   $      (3,087,585)

EPA - Lead Abatement Program            10

Home 1999            98,399

HUD Supportive Housing Program            (129,176)

Streets & Sanitation - State Programs            114,774

Public Health-Federal Health Grant            178,768

Green Streets Program- Urban Forestry            5,707

Dept. of Enviroment - Federal Program            411,543

DOH Bioterrorism Grant Program            262,909

Chicago Dept. on Aging - Federal Program            810,221

State Street Mall Improvements            (215,377)

Community Development Block Grant Program - Year XXII            12,042

Illinois Emergency Management Program            (1,883)

Community Development Block Grant Program - Year XXVIII            137,263

Structural Bridge Inspections            949,609

Metra 92Nd/93Rd Street Station      

State Bridge And Viaduct Rehab            1,831,427

Home 96            30,828

Dept of Enviroment - State Prgms            1,695,237

Streets & Sanitation Federal Programs            687

Dept. of Cultural Affairs-Federal Grants            (42,831)

Human Svcs-DHS Support Housing            88,860

IDOT State Funded Railroad Program            (13,192)

Local Tourism & Convention Grant            1,297

Human Services - US HUD Programs            (1,064,281)

Illinois DHS MOWD State Other Programs            798

Empowerment Zone Grant - Federal            (357,791)

Lakefront Busway Project            (1,154,066)

General Services Redevelopment            (159,797)

Empowerment Zone Grant - State            347,969

WIA Rapid Response Grant            209,696

Human Services - Food Services            (1,868,854)

Human Services-DHS-State Program            9,715

Human Services-US Dept. HUD Program            1,106,733

Human Services-CDHS-State-Other Programs            (405,550)

Human Services-CDHS-State-Other Programs            291

Human Services - CDHS - IDCCA Program            2,308,869

38

Transfers

In

268,583

29,814

42,004

448,255

51,655

1,027,819

Receipts Disbursements Including Settlements   Including Settlements

$

$

Between Funds      Between Funds

33,110 $

8,687,309 141

24,678 34,646

1,313,471

46,191 4,163,786

58,842

65,790 2,684,480

152,019

6,736,501

7,868,661 2

1,540,200

2,059,151

8,002,035

60,750 2,115,031

3,690,704

Out

4,660,769 360,241

14,838

4,891

64,532

74,350

80,809 274,590

6,265,848

Balance in Treasury Dec. 31, 2012

(Overdraft)

$ (3,120,695) 10 98,399 (129,176) 114,774 178,768 5,707 365,352 394,246 450,121 (215,377) 12,042 (1,883) 147,103 918,465

455,527 30,828 1,695,237 687 (42,831) (39,035) (13,192) 1,297 (2,228,787) 798 (357,793) (2,246,011) (159,797) 347,969 209,696 (1,958,758) 9,715 776,263 (405,550) 291 1,382,171

39

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

SPECIAL REVENUE FUNDS - Continued

Child Care & Related Services                                                                                  $      1,018

Human Services - DHS - IDCCA Program            2,294

Human Services - DHS - IDCCA Program            335,244

Headstart            506,748

CDHS-Headstart/Early Headstart            (1,735,793)

CDHS - Misc - other Programs            (10)

Human Services - DHS HHS Program            (88,448)

Transportation Planning Program - State            49,383

Dept of Cultural Affairs - Local Grant            10,000

Tourism & Convention Bureau Grant            (72,461)

Illinois Library Development Grant            (1,436,511)

Urban Development Action Grant            (2,194,317)

Clark Street Special Service Area No. 24      

Police State Program            (256,478)

Lincoln Park/Clark Street SSA #23            5

53Rd Street Redevelopment TIF            2,463,077

Belmont/Central Redevelopment TIF            12,224,781

Division-Homan Redevelopment TIF            6,634,476

Englewood Neighborhood Redevelopment TIF            23,722,579

Humboldt Park Commercial Redevelopment TIF            10,711,712

Lake Calumet Redevelopment TIF            14,913,496

Lawrence/Broadway Redevelopment TIF            10,900,718

River West Redevelopment TIF            36,920,061

Western Avenue South Redevelopment TIF            21,585,126

Wilson Yard Redevelopment TIF            18,060,925

Motor Fuel Tax 2003 Project Fund            (3,191)

Library Services & Programs            1,232

Com Ed Settlement Fund II            7,941,392

Little Village Special Service Area No. 25            12,161

Edgewater Special Service Area No. 26      

Lakeview (Lincoln/Belmont/Ashland) Special Service Area No. 27      

Federal Financing Bank Loan            22,485

Six Corners Special Service Area No. 28            102,177

Skyway Neighborhood/Human Infrastructure Fund            74,820

Skyway Obligations Payment Fund            1,740

West Town Special Service Area No. 29            11,811

35th/State Redevelopment Incremental Taxes Fund            4,279,695

40

In

Receipts Including Settlements

Between Funds

87,535,924 13,993

5,389,764 57,720 6,884

562,961 2,783,655 1,358,037 4,220,551 2,948,976 2,154,355 2,977,931 12,053,724 6,128,049 6,604,674

6,121,186

30,473 11,999

29,657 1,356

2,360 938,100

Disbursements Including Settlements

Between Funds

$

78,787,058 6

167,433 1,881,619

775,094 1,423,735 4,024,383 2,061,628 1,018,859 4,170,119 3,020,156 7,604,247 7,000

758,501

72,360

944,498

Transfers

829,795

249,183

9,137 32,492 14,889 89,480 25,018 37,026 22,634 75,419 55,956 39,811

80

8,325

Out

11,855,780

4,893,047

26,739 75,521 18,619 66,629 39,569 55,283 50,732 193,097 115,942 119,919

708,771

24,414

Balance in Treasury Dec. 31, 2012

(Overdraft)

$ 1,018 2,294 335,244 506,748 (4,012,912) (10) (74,461) 49,383 10,000 (72,461) (690,611) (2,136,597) 6,884 (256,478) 5

2,841,003 13,083,788 7,213,689 26,542,246 9,621,754 14,987,966 12,831,692 44,685,988 24,633,033 16,981,244 (10,191) 1,232 12,595,306 12,161 30,473 11,999 22,485 131,834 3,896 1,740 14,171 4,257,208

41

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

SPECIAL REVENUE FUNDS - Concluded

Edgewater/Ashland Redevelopment Incremental Taxes Fund            $          1,680,015

87Th/Cottage Grove Redevelopment Incremental Taxes Fund            6,601,224

Diversey/Narragansett Redevelopment Incremental Taxes Fund            3,819,463

47Th/Halsted Redevelopment TIF            13,523,776

79Th Street/Southwest Highway Redevelopment TIF            5,193,751

47Th/Ashland Redevelopment TIF            13,771,111

47Th/King Drive Redevelopment TIF            33,598,189

119Th/l-57 Redevelopment TIF            4,888,282

67Th/Cicero Redevelopment TIF            503,305

Drexel Boulevard Redevelopment TIF            306,210

Lakefront Redevelopment TIF            664,071

Avalon Park/South Shore Redevelopment TIF            2,942,629

Lawrence/Pulaski Redevelopment TIF            9,283,430

Roseland/Michigan Redevelopment TIF            3,440,882

105ThA/incennes Redevelopment TIF            1,438,683

119Th and Halsted Redevelopment TIF            3,927,400

45ThAA/estern Industrial Park Conservation Area TIF            313,232

Chicago/Central Park Redevelopment TIF            25,012,171

Commercial Avenue Redevelopment TIF            10,279,512

Community Development Block Grant Year 9            295,789

Community Development Block Grant Year 9            6,486

Madden/Wells Redevelopment TIF            1,520,014

Should Be Another Fund                  -

Total Special Revenue Funds      1,527,801,949

PERMANENT FUNDS - Concluded

Parking Meter - Perpetual Reserve            97,884,997

Parking Meter - Budget Stabilization Fund            617,391

Parking Meter - Mid-Term Budget Relief      

Midway Privatization Reserve Fund            102,602

Skyway Mid-Term Reserve Fund            134,205

Skyway Long-Term Reserve Fund            500,051,507

Total Permanent Funds      598,790,702

DEBT SERVICE FUNDS

Build America Bond Subsidy Fund Series 2009            17,231,222

Debt Service Adjustment Fund       14,986

42

Receipts Including Settlements

Between Funds

$

241,167 2,066,511 1,930,715 2,898,863 1,521,105 2,392,407 6,949,239 2,262,959 285,487 344,138 244,246 621,756 1,358,554 558,542 379,341 446,113 59,721 5,716,067 1,458,695

881,877

1,257,374,768

Disbursements Including Settlements

Between Funds

$

321,062 790,792 2,649,343 5,493,171 391,569 249,929 5,868,428 508,619 320,651 564,296 402,141 249,964 1,499,919 382,000 1,418,000 1,093,308

2,215,256 1,438,814

495,736 3,548,525

1,034,653,987

Transfers

In

7,205 16,638 3,591 3,981,206 12,663 34,759 86,485 10,264 883 617 1,469 7,459 21,109 7,689 203,174 9,562 718 64,050 24,648

3,327

135,022,268

Out

3,006 33,364 33,959 45,538 63,240 37,461 4,496,196 224,087 5,964

2,260 11,704 28,550 11,654 4,369 35,578 976 272,202 22,384

13,192 327,878

361,946,437

Balance in Treasury Dec. 31, 2012

(Overdraft)

$ 1,604,319 7,860,217 3,070,467 14,865,136 6,272,710 15,910,887 30,269,289 6,428,799 463,060 86,669 505,385 3,310,176 9,134,624 3,613,459 598,829 3,254,189 372,695 28,304,830 10,301,657 295,789 6,486 1,896,290

      (3,876,403)

1,523,598,561

292,887

292,887

894,417 197 3,042 8 70

7,760,784

8,658,518

20,552,742 225,000

20,777,742

225,000 549,701 3,042

777,743

119,107,156

102,610 134,275 507,812,291 627,156,332

5,642,655

21,428 15,453

22,895,305 30,439

43

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

DEBT SERVICE FUNDS - Concluded

Millennium Parking Garage Operations                                                                        $      6,477

New Central Public Library Escrow Proceeds            5,050,000

Long Term Lease Obligations Debts Service Fund            115,938,138

Motor Fuel Tax Debt Service Series 1990            10,273

Bond Redemption & Interest Series 1985            152,440

G O Note Redemption & Interest Series 1980            138,576

City Sales Tax Capital Improvement Bonds 1997            (1,651,830)

G O Note Redemption & Interest Series 1980A            34,503

Note Redemption & Interest Series 1983            (305)

Daily Tender Notes Debt Service Series 1984C            90

Bond Redemption & Interest Fund            (32,888,227)

G O Bonds Project Series 1992A            (631,977)

Library Bond Redemption & Interest Fund            (28,739)

G O Bonds Series B of October 1992            16,028,783

G O Bonds-Emergncy Telephone 911            92

G O Tender Notes Series 1995D            (1)

Library Debt Service Series 1995            1,387,729

G O Bonds Refunding Series March 1992            11,438,002

Debt Service Adjustment Emergency Communication            4,555

City Colleges Debt Service Fund            156,254

Mmunicipal Bond Debt Service Fund            75,508,401

Chicago Matured General Obligation Bonds            5,313,620

Matured G O Interest Coupons            1,493,384

Note Redemption & Interest Series Oct. 1986            1

G O Library Project Bond Debt Service Fund            (39,760)

Division/Homan Redevelopment Project            3

119th/l-57 Redevelopment Project            365,187

119Th and Halsted Redevelpment Project            356,045

Harrison/Central Redevelopment Project, Taxable Series 2007 - Debt Service Fund            344,712

111th & Kedzie TIF - Debt Service            15

Chatham Ridge Tax Increment            385

Pulaski Corridor Redevelopment Project- Series 2000            10,958,198

Jefferson Park Business District TIF Debt Service Fund            3,187,080

Special Service Area No. 1 Bond Redemption & Interest            1,033

Stockyards 1996A TIF Debt Service Fund            142,694

95ThA/Vestern TIF Debt Service Reserve Fund             -

Total Debt Service Funds      230,022,039

44

Transfers

Out

Receipts Disbursements Including Settlements   Including Settlements

Between Funds      Between Funds

Balance in Treasury Dec. 31, 2012

(Overdraft)

$

$

5,470,358 3,507,677

11

335,469,082

4,038,399 1,347,378

113,806

34,089,379 8,547,183 38 5,102

11 11 11

2,761 2,853,201 879,672

401,966,735

95,240,000 9,000,000

22,685,942 422,015

31,965,224

2,116,784 4,967,289

4,530,000 105,649,131

214,875 205,733 194,400

277,191,393

26 351

22,104,917 1,672,015

5,175,117

80,098 48,308 4,967,200

1,192,776

11

760,321 100,171 80,000 105,544,104

29,950 16,474

180

141,808,900

1,250,000

102,678,514

1,423,160 6,731

144,683

904,625 731,127

516,891 499,517

108,155,248

$ 6,477 (84,719,642) 110,445,815 10,299 152,451 138,927 (2,232,855) 34,503 (305) 90

173,112,234 (631,977) 2,666,598 15,300,954 3

(D

2,580,505 11,407,125 4,566 34,101,329 83,424,628 863,658 1,393,459 1

(39,760) 3

150,323 150,323 150,323 15 3,146 13,324,458 3,583,709 1,033 142,694

      180

388,451,033

45

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT

Year Ended December 31, 2012      

Balance in Treasury Jan. 1, 2012

(Overdraft)

CAPITAL PROJECTS FUNDS

G.O. Bonds Taxable - Ser 2000B                                                                               $      314,833

G. O. Bonds 2002 Series C            2,839,944

Neighborhood Alive 21 - 2003 Series            4,126,771

Neighborhoods Alive-2001 B(Tax)      .'            1,168,713

Mc Cormick PI Offsite Improve            (564,939)

CSX Neighborhood Investment Fd            1,519,898

Near South Cost Of Issuance Fd            9

1. General Obligation Bds Fd            8,704,451

2004 General Obligation Bonds            912,150

G. O. Bonds-Series 2003 D            236,658

Neighborhoods Alive-2001 A(Ntx)            5,278,121

98 Lakefrt Millennium Bds-Oper            409,001

2000 G.O. Bonds-Operating            2,724,040

1985 General Obligation Fund            11,339,960

1987 General Obligation Fund            681,535

1997 City Sales Tax-Oper Fund            1,113,583

1. A And B G.O. Bonds Fund            2,175,963

1992 S B Go Bonds Operating Fd            326,645

Neighborhood Alive Capital Prgm            2,246,602

1996 G. O. Bonds - Operating            680,695

GO Bonds Oper Fund Ser Apr 81            7,332

1. G.O. Bonds-Operating Fund            59,162

G O Bonds Series March 1982            214,701

1. G.O. Bds-Operating Fund            107,334

Lakefront Millennium Donor Pjt            1,667,112

General Obligation Bonds - Series 2005            5,429,097

1995 G.O. Bonds Ser B Oper Fd            (442,128)

G O Bonds - Series A And B            7,446,895

Strategic Investment Fund            1,775,120

G O Bd An Operating S April 81            65,730

2003      G. O. Bonds - Series C            7,749,528

G O Refunding Oper Fd Ser 9/85            118,005

Financing Fund Proj Series 85            1,758,944

G O Bonds Refunding Series 86            (218,832)

1995 G. O. Bonds - Operating            110,607

Neighborhoods Alive 2002 A & B            (999,387)

46

Transfers

In

Out

Receipts Disbursements Including Settlements   Including Settlements

Between Funds      Between Funds

Balance in Treasury Dec. 31, 2012

(Overdraft)

$

$

300,000

220,000

17 1,726

3,155 3

22,586

6,232 134,899

54,126

509,741 129,466

230,248

3,230,235

4,393 168,549

156,347 434,831

375,253

5,510,578

62,457 12,531

901,775

826

5,510

5,625

100,065 76,008

25,956 46,190

121,468

107,746

314,833 2,828,087 3,991,872 1,168,713

(564,939) 1,728,164 9

8,131,233 782,684 236,658

5,047,873 409,001

2,724,040

9,231,500 681,535

1,113,583

2,171,570 327,471

2,078,053 680,695 7,332 59,162 214,718 107,334

1,512,491

4,968,310 (442,128)

7,025,452

1,775,120 65,730

2,126,147 118,008

1,781,530

(218,832) 2,861

179,181

12,281

(832,487)

47

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

CAPITAL PROJECTS FUNDS - Continued

General Obligation Bonds - Taxable Series 2005                                                            $      1,318,226

G O Bonds - Series 2003 B & C            4,584,549

1999 City Sales Tax Bonds            1,693,082

1. G.O. Tender Bds - Oper Fd            204,503

1999 G.O. Bonds - Operating Fd            2,290,939

1. City Sales Tax-Oper Fund            14,719

1. G.O. Bonds-Operating Fund            339,341
2. Skyway Trans Improv Bond            (1,063,338)

City Colleges 1999 G.O.Bonds            25,356

Go Pjt & Ref Bds 2000C -Pjt Fd            (32,583)

General Obligation Bonds - Series 2006            788,146

G.O. Bonds Series 2007            (263,676)

G.O. Bonds Tax Series 2007            (10,646)

G.O. Bonds Tax Series 2007            176

G.O. Bonds - Series 2008            (1,447,366)

G.O. Bonds - Taxable Series 2008            11,583

Library Capital Improvement Bonds - Series 2008            (2,094)

General Obligation Bonds - Taxable Series 2008E            (21,382)

General Obilagation Bonds - Series 2009            (2,991,731)

General Obligation Bonds - Taxable Series 2009            (1,178,651)

Project Recovery Zone Economic Development Bonds - Series 2009D            (2,139,254)

Michael Reese Site Work Fund            780,021

G.O. Bonds Tax Series 2010            (125,036)

G.O. Bonds Tax Series 2010            (37,569)

G.O. Bonds Tax Series 2011            (58,647)

G.O. Bonds - Non-Tax Sereis 2011            (5,268,346)

G.O. Bonds Tax Series 2012      

G.O. Bonds Non-Tax Series 2012      

Cp Public Safety Retro            5,185,493

Cdot Capital Projects      

Stony Island/Burnside Prjt Fd            663,229

Clark & Montrose Tif - Prjt Fd            791,554

111Th & Kedzie Tif- Prjt Fd            14,823

1998A Linc-Bel-Ash Project Fd            (27,308)

Bryn Mawr/Broadway Tif Proj Fd            95,239

Goose Island Prjt Fd Ser 2000            131,117

95Th & Western Tif Project Fd            1,206,013

48

Transfers

In

Out

Receipts Disbursements Including Settlements   Including Settlements

Between Funds      Between Funds

Balance in Treasury Dec. 31, 2012

(Overdraft)

290,000 6,304,746 4,300,495

3,263,115 313,000 2,120,000 66,000

837,000 3,200,000

17,344,754 1,320,000 50,300,000 62,372,000 4,000,000 2,600,000

26,343

27,308

40,830 227,843 176,150

5,045

607

321,233 6,057,489 4,179,880

2,923,362 401,787

4,182,171 84,535

2,130,937

1,426,926 642,245

16,988,004 1,490,483 16,419,555 39,756,853 4,509,424 2,675,255

162,103 202,335 5

2,831

193,558 2

645,278

743,248

173,760 13,182,000

187,544 1,567 2,063 38

241 337 3,145

50,746

12,531

190,682 141,633

170,418

624,873 179,501 302 578,742

2,351,695

46,532,943 19,353,371

1,188,539

2,637

1,277,396 4,305,960 1,516,932 204,503 2,285,894 14,719 326,203 (1,063,338) 25,356 (63,816) 1,038,279 (284,692) (10,646) 176 (632,753) (77,204) (2,064,265) (664,790) (4,558,921) (1,768,879) (160,241) 780,021 (1,946,221) (208,052) 470,855 (2,006,570) (509,424) (1,263,794) 5,185,493 213,887 502,693 591,282 14,856

95,480 125,986 1,209,158

49

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1,2012

(Overdraft)

CAPITAL PROJECTS FUNDS - Continued

Pulaski Corridor Redevelopment Project - Series 2000                                                      $      1,964,650

Near West Tif Ser 2000-Prjt Fd            (1,973,173)

Read-Dunning 1996 Project Fund            1,106,102

Read-Dunning 1996 Cost Of Issu            132

Near South 1999A Project Fund            1,890

Near South 1999B Project Fund            247,600

Near North Tif 99B Project Fnd            571,730

Sanitary/Ship Canal Project-Fd            5,058

South Chicago Tif - Project Fd            10,088

Near South 01A-Prjt Fd (Non-T)            (318,797)

Portage Park Tif Project Fund            392,727

Near South 01B-Prjt Fd (Tax)            137,612

Stockyards 1996A8.B Cost Of Iss      

Stockyards 1996A Project Fund            17,697

Stockyards 1996B Project Fund            211,484

Belmont/Central Tif Series 2003-Project            45,935

Midwest Tif-Project Fund            144,082

1998 Irving/Cicero Project Fd            5,797

Jefferson Park Tif-Project            1,408,693

Fullerton/Milwaukee Project Series 2002            4,618

Western North Series 2002 Project Fund            9,564

Humboldt Park Commercial Redevelopment Project-Taxable Series 2003            411,477

Madison/Austin Corridor Redevelopment Project Fund Taxable Series 2003            260,476

Western Avenue South Project            1,160,940

Pilsen Industrial Corridor Redevelopment Project, Taxable Series 2004 A            42,394

Pilsen Industrial Corridor Redevelopment Project, Series 2004 B - Project Fund            (169,306)

Central Area Circulator Ssa 12            2,303,655

Central Area Circulator Ssa12            1,178,178

Emerge Phone Systm 911-Oper Fd            50

Ravenswood Bldg Improvemnt Pgm            (424,798)

Kraft Building Renovation            (1,465)

Throop Street Build-Out            127,147

Goldblatts Building "Build-Out            (349,397)

Central Public Library Project            9,188

Admin Hearings Build-Out Prgm            62,917

Goldblatts Bldg Acquis - Oper            132,909

1997 Equip Note Fund-Operating      

50

In

Out

63,794

21,609

Receipts Disbursements Including Settlements   Including Settlements

Between Funds      Between Funds

$

$

2,285,008

1,926,429 $ 32

31,000

34,335 4,517

70,000

1,608 2,076

Transfers

522,690 $ 2,801

627 1,476 13 118

1,139

Balance in Treasury Dec. 31, 2012

(Overdraft)

E 497,117 311,803 1,108,903 132 (1,445) 248,227 568,689 5,071 10,206 (272,014) 391,790 137,612

2,310,000 850,000 22,012

8,771

1,064,811

5,694 1,861,436 978,315

126,642 332 46,705

45 535 169 365

15

502,361 12

1,247 746 3,120 1,885

13,756 15,810

58,517

448,255 7,760 2,303,655 1,178,178

17,742 212,019 37,333 144,447 5,812 787,726 4,630 9,564 412,724 261,222 1,158,366 44,588 (305,381) 22,012

50

(424,798) (1,465) 505 (349,397) 8,857 76,679 86,204 15,810

51

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

CAPITAL PROJECTS FUNDS - Concluded

1997      Library Equipment - Operating                                                                            $      105,689

1996 Library Equipment Note Fund            (1,760,434)

1996 Equipment Note Fund      

1. Equipment Note - Series B & C            20,240,729

Equipment Notes 2002            376,021

Equipment Notes 1986 Series C            3

Equipment Notes 1987 Series C            373

Capital Equipment Notes 2002            (95,212)

Capital Equipment Notes 1990            75,297

Capital Equipment Notes 1991            29,465

2001 Equipment Note            (898,169)

Capital Equipment Notes 1992            10,733

1. Capital Equipment Notes            2,253,737

Equipment Note            345,491

2000 Library Equipment Note            2,712,981

2000 Capital Equipment Notes            (2,576,345)

1995 Equip Nt Fd - Operating            649

1. Equipment Note            959,604

1998      Libr Equip Nts-Operating            48,082

1998 G O Tender Notes Trust Ac            1,690,291

1. Equipment Note Fund-Oper            (1,513,477)
2. Equipment Notes Fund-Oper            202,803

1999 Library Equip Note - Oper            18,720

1. Equipment Note            52,996
2. Equipment Note            (28,354)
3. Equipment Note Fund            227,513
4. Equipment Note            (138,401)
5. Capital Equipment Note            161,985
6. Equipment Note            (1,076,548)
7. Capital Equipment Notes Fund             -

Total Capital Projects Funds            106,718,411

ENTERPRISE FUNDS

2009 Water Commercial Paper Program       627,784

Water Revenue Bonds - Series 2010            (1,778,748)

Qualified Energy Conservation Bonds - Series 2010 C       (34,470)

lepa Loan L173769      

52

Transfers

In

91,936

2,187,827

19,464,573

Receipts Including Settlements

Between Funds

$

6 3

810,249

288,000

6,300,000 4,400,000 900,000 2,100,000 6,600,000 22,155,000 3,400,000

211,932,714

Disbursements Including Settlements

Between Funds

$

6,438

6,543

47,314 43,946

287,747

13,946

3,316,784 1,539,246 846,856 2,159,812 8,540,658 21,944,215 3,770,090 164,550,365

Out

3,000,000 3,000,000

1,622,375

83,565,814

Balance in Treasury Dec. 31, 2012

(Overdraft)

S 105,689 (1,760,434) 91,936 20,234,291 376,021 3

373 (95,212) 75,303 29,468 (904,712) 10,733 2,253,737 298,177 3,479,284 (2,576,345) 649 959,857 48,082 1,690,291 (1,527,423) 202,803 18,720 36,212 (167,600) 280,657 (198,213) 409,154 (2,488,138)

      (370,090)

      89,999,519

44,600,000

2,349,438

1,637,721

648,858 41,909,882 6,967,408 1,637,721

(21,074) (1,438,068) (7,001,878)

53

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT

Year Ended December 31, 2012      

Balance in Treasury Jan. 1, 2012

(Overdraft)

ENTERPRISE FUNDS - Continued

Illinois Epa Loan L174564                                                                                        $      (8,000,000)

Illinois Epa Loan L174686            (692,861)

Illinois Epa Loan Project Fund L 174687      

Second Lien Water Revenue Bond 2012      

Illinois Epa Loan Project Fund            (315,874)

Water Fund            67,155,084

Water Revenue Bds Ser 2000-Pjt            518,136

Water Commercial Paper Program - Series 2004 Project Fund            376,079

Water Revenue Bonds Series 89            125,662

1997 Water Revenue Bonds            (131,875)

Water Rev Bds Cost Of Issuance            256,141

Water            (251,369)

Water Collection Audit Fund            685,198

Water Revenue Bonds - Ser 2001            53,545

Water            (151,678)

Cap Imp Pjts Rate Stbl Fundedl            (142,197)

Water Rate Stabilization Fund            62,267,196

1999 Water Project Fund            48

Illinois Epa Loan Project Fund            (410)

Water Rehabilitation Reserve            43,900

Water            209

1995 Water Project Fund            (1,749,071)

Spl Deposits For Adv For Const            5,598,661

Water Adv Payments Non Refund            5,632,961

Mat Water Cert & Rev Bd Int Cp            31,149

Wastewater Revenue Bonds - Series 2008            (38,842,137)

Wastewater Revenue Bonds - Series 2010            (1,212,259)

IEPA Loan L174565      

DWM IEPA Loan L174682      

Waste Water 2012      

Illinois EPA Loan Project Fund            16,287,679

Sewer Project Fund 1994            (9,354)

Sewer Project Fund Series 1995            9,518

Sewer Project Fund 1998            1,179

Wastewater Transmission Revenue & Income Bonds Const            1,074,206

Sewer Project 1997            64,290

54

Receipts      Disbursements       Transfers            Balance in Treasury

Including Settlements   Including Settlements      Dec. 31, 2012

Between Funds      Between Funds       In             Out             (Overdraft)

8,000,000 $

48,700,000 591,215,335

53,000

350,000 690,308

1,017,393 2,299,451

39,200,000

26,000,000

5,018

1,307,139 8,000,000 53,910,372 49,499 203,463,607 7,320 139,270 218,449 87,150

269,562

50,265 555,598

1,853

140,461 26,716

1,029,539 56,207,866

4,918,445 31,924,311

7,724,200

6,468,300

11,710

20,000,000 19,716,743 19,716,743

3,712,321

4,146

304,131,955

205,377 1,814,298

37,353 1,445,467 19,716,743

4,589,887 20,000,000

(2,000,000) (275,800) (5,214,518) (365,373) 157,243,157 510,816 236,809 (39,787) (219,025) 256,141 (520,931) 685,198 3,280 (357,276) (142,197) 62,957,504 (1,805) (410) 43,903 209

(1,749,071) 6,270,216 6,103,108

31,149 (19,909,029)

51,151

(4,918,445) (10,514,198)

(9,354) 9,518 1,179 1,079,224 64,290

55

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

ENTERPRISE FUNDS - Continued

Capital Improvement Project Sewer Rate Fund                                                               $      3,228,418

Wastewater Transmission Revenue Bond & Coupon            (19,150)

Wastewater Transmission Revenue Bonds 1995            (208,706)

Wastewater Bonds Cost of Issuance            71,250

Wastewater Revenue Bonds Series 1998A & 1998B Cost of Issuance            26,199

Wastewater Transmission Revenue Bonds            2,244,378

Sewer Fund            4,957,344

Wastewater Escrow Restructing Proceeds 1993            18,226

Sewer Project 1992            72,485

Wastewater Revenue Bonds-Series 2001A            (2,846,982)

Wastewater Transmission Revenue Bonds Series 1992            259,760

Wastewater Transmission Revenue Bonds 1992 Cost of Issuance            41,791

Wastewater Transmission Revenue Bonds Series 1990            (418,707)

Wastewater Transmission Revenue Bonds Series 2000            86,120

O'Hare Environmental Settlement            10,013,740

O'Hare Customer Facility Charge Fund            43,296,559

O'Hare Self Insured Retention Fund      

O'Hare Commercial Paper Cost of Issuance Fund            38,696

Federal Airport O'hare Field Development            129,419

O'Hare PFC Revenue. Bond-Revenue. Fund            9,759,280

O'Hare Security for Payment Fund            2,137,166

O'Hare Operation & Maintenance            63,144,773

O'Hare Revenue Fund            103,298

O'Hare Operation & Maintenance Reserve            101,685,494

O'Hare Debt Service Reserve Fund            (31,103)

O'Hare Special Capital Projects            1,858,283

O'Hare Emergency Reserve Fund            27,660

O'Hare Airport Development Fund            69,771,627

O'Hare Construction Fund of 1983            (1,010)

0"Hare PFC Revenue Bonds-Capital Fund            130,956,193

O'Hare Maintenance Reserve            2,498,898

O'Hare Land Support Area Fund            44,934,496

O'Hare Airport Earnest Money            981,472

O'Hare Airport Parking Fund            8,503

International Terminal Construction            4,001,366

Property Tax-OMP Acquisition Fund            926,614

OMP-Administrative Fund            12

56

Receipts Disbursements Including Settlements   Including Settlements

$

Between Funds      Between Funds

$

53,590 24,357,717

76,262,467

92,281 24,581,908 385,754

68,950,045 87,409,899 18,098 338,254,147

10,101,475

726,412 3

7,647,345

8,011,627 2,163,748 12,298,648 5,941 18,893,029 14,041

63,179 100,855

1,056,105

14,777,469 49,234,055 175,242 212,353,766

1,337,577

1,228,242

5,596,554 42,070 59,727,269 1,745,224 363,680

18,893,020

Transfers

In

184,064,603

98 12,452 21 5,432 14,713,063

55,692,555 1,010 43,149,220

51,693

Out

70,702,824

50,895,115 42,429,092

144,045,675

3,401,081 10,556,087

Balance in Treasury Dec. 31, 2012

(Overdraft)

$ 3,228,418 (19,150) (208,706) 71,250 26,199 2,297,968 66,414,373 18,226 72,485 (2,846,982) 196,581 41,791 (519,562) 86,120 10,106,021 66,822,362 385,754 38,794 3,419,332 5,506,053 1,985,454 59,712,542 103,298 110,449,392 (31,103) 1,356,453 27,663 127,514,973 (42,070) 118,988,690 2,917,422 46,365,070 987,413 8,512 4,015,407 926,614 12

57

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1,2012

(Overdraft)

ENTERPRISE FUNDS - Concluded

Customer Facility Charge - Midway                                                                            $      20,984,631

Midway Airport Fixed Assets      

Midway 8c Meigs State Grant            28,335

Midway Construction Operations            (1,881,049)

Midway Operating 8c Maintanence            32,450,718

Midway Airport PFC Fund            2,204,388

Midway Operating 8c Maintenance Reserve Fund            18,583,261

Midway Security For Payment Fund            2,373,192

Federal Airport Midway Project Fund            (2,732,363)

Midway Capital Project- 1991            331,123

Midway Revenue Fund            15

Midway Repair 8c Replacement Fund            4,303,098

Midway Emergency Reserve Fund            381,320

Midway Special Project Fund            13

Midway Airport Development Fund            12,285,814

Midway Airport Parking Lot            2,457,192

Midway Commercial Paper            32,052

Skyway Operation - Maintenance            977,990

Skyway Capital Improvement Fund            244,621

Skyway Improvement Account Series 2000      

Skyway Revenue Fund             1_

Total Enterprise Funds      694,274,536

TRUST AND AGENCY FUNDS -EXPENDABLE TRUST

J Lloyd Armstrong Investment            14,661

Jonathan Burr Investment Fund            21,822

Harrison and Tree Investment Fund            3,612

Police Life and Health Investment Fund             10,936

Total Expendable Trust Funds       51,031

TRUST AND AGENCY FUNDS -AGENCY FUNDS

Peoples Energy Settlement Fund            6,532,236

Floor Area Bonus - CPS            806,201

Midway Privatization Reserve Fund            202,603

Treasurer's Adjustment Fund            2,341,463

58

Transfers

Balance in Treasury Dec. 31, 2012

(Overdraft) $ 19,606,372

In

Out

Receipts

Disbursements

251,184 $

$

Including Settlements   Including Settlements

Between Funds      Between Funds

1,629,443 $

48,383,176 98,591,618 28,033,540 2,157,512 24,016 7,487,210 1,768

540,370 12,167 9

135,432 25,588,449

501,302 22

43

1,569,804,034

49,573,801 59,123,563 29,933,621

23,478 460,197

101,473 27,835,442

498,338

1,025,607,421

66

7,497,232 437,525

248,760 147

392,861,615

36,169,307 21

7,487,163

32,052

244,638 147 3

720,257,869

28,401 4,425,558 36,186,991 304,286 20,740,773 2,397,208 (2,732,316) 309,413 15

4,383,271 393,487 22

12,319,773 210,199

1,229,714 5

41

911,074,895

14,661 21,825 3,612 10,936

51,034

3,056,104

8,184

202,609

(1,295,484)

17,957 2,041

3,485,905 808,242 d)

1,045,979

59

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

AGENCY FUNDS - Continued

Temporary Fund For 801                                                                                         $      1,129,878

City Service Tax Fund            1,135,987

Hertz & Avis Transportation Tax Escrow Fund            1,272,695

Ground Transportation Tax Protest Fund            (222)

Demolition of Building. Protest Fund            16,445

Controlled Substances Act Fund            778,628

Post - Tow Hearing/Storage Fee            (635)

Neighborhood Parks Program Fund       22,814,501

Low Income Tax Credit Program Fund            1,148,088

Senior Citizens ID Bracelet Fund            20,480

Municipal Cable Access Maintenance Fund            53,187

Fire Academy Training & Improvement Program Fund            3,651,056

Chicago Police CTA Detail Fund            1,251,382

Multi-Family/Housing Revenue Notes            39,702

Chicago River West Project Fund            185,793

Constrictopm Loan Revenue Housing Fund            8,038,956

McCormick Place Walkway Project Fund            28,402

Place Lasalle Project Fund            4,581

Contract Bid Deposits Fund            4,931,877

Winter Shelter For Homeless Fund            (267)

SRO Housing Trust Fund            889,658

Employees Benefits Fund       28,246,191

CHAMP Cost of Issuance Fund            114,685

Wacker Drive Fountain Fund            45,610

Controlled Substance Enforcement            3,729,574

Chicago Theaters Preservation            56,946

Chicago Historical &. Architectural Landmarks Fund            129,911

Leased Car Withholding Fund            568,127

Tax Reactivation Program Fund            4,460,011

Unimproved Streets Assessment Fund            282,180

INA E. Hall Investment Fund            29,159

Special Assessment New Law Fund            1,520,857

S A Penalties and Interest Fund            78,163

S A Tax Redemption Fund            36,141

S A City Collection Undistributed Fund            1,795,577

S A Foreclosures Undistributed Fund            567

S A County Collection Undistributed Fund            328,006

60

In

Receipts Disbursements Including Settlements   Including Settlements

Between Funds      Between Funds

$      1 $

18,839

615 10,000

36,095 972,290 67,005

13,210 5,659

140,533

557,388

15,955 70,951,828

1,750,477

961,033 40,482 216 50,000 1,665,600 5,949,480 3 14

1,000,286

1,871 56,411

118,119 115,217,309

2,517,256

104,636 7,976

5,635

2,489 14,755

9,261

Transfers

94,708 $ 15,999

1,767

235 223,672

12,334

118 9,714

329 1,438

74 15,700 56

511

Out

11,987

913,127

215,676 4,920,366

915,709

183,482

511

2,432 3,649

9,675

Balance in Treasury Dec. 31, 2012

(Overdraft)

5 1,224,587 1,153,209 1,278,354 (222) 16,445 902,089 (635) 22,861,792 1,178,570 20,696 67,327 4,128,690 2,437,163 39,705 185,807 7,566,145 28,402 6,452 4,988,288 (3,888) 1,007,777 72,511,672 114,685 45,728 4,322,585 56,946 130,240 569,565 4,564,647 290,156 29,233 1,541,681 78,219 36,198 1,806,683 567 328,103

61

Schedule 1 - Continued CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT Year Ended December 31, 2012

Balance in Treasury Jan. 1, 2012

(Overdraft)

AGENCY FUNDS - Concluded

S A Central Englewood Shopping Mall Fund            $ 99,683

S A 30 Yr Law Distribution Fund            34,888

S A Central Englewood Mall Maintenance & Operation Fund            180,983

Dependent Care Deduction Fund            34

Payroll Clearing Fund            (42,411,710)

Elections Clearing Fund            (1,200,152)

Matured Bond Anticipation Notes & Interest Fund            287,657

Sidewalk Repairs Fund            22,641

Chicago 1996 - Operating Acct            84,018

Parking Meter Park District Deposit Fund            758,802

License Deposit Fund            7,526,475

Special Deposit Fund            29,225,275

North Loop Default Fund            49,299

Undistributed Taxes Various Years      

City Employee U S Savings Bond Fund            17,400,062

City Employees Withholding Tax      

McCormick Place Departure Tax Escrow Fund            8,784

McCormick Place Departure Tax Deposit Fund            3,449,688

Percent for Art Program Fund            390,970

Income on Investments Fund            4,652,014

Illinois State Income Tax Withholding Fund            167

CPS School Building & Improvement Tax Fund            963,891

Affordable Housing Opportunity Fund            8,026,094

Miscellaneous Fund            (350)

Miscellaneous Fund            (30,722)

Cash Receipt Error Fund             (6,969)

Total Agency Funds            128,205,902

Total Trust and Agency Funds            128,256,933

CONTINGENCY FUNDS

Corporate Purpose Reserve for Tax Anticipation Warrants and Interest

1.       792
2.       1,506

1930      ;            4,066

1931             2,111

      8,475

62

Receipts

Disbursements

$

Including Settlements   Including Settlements

Between Funds      Between Funds

$

1,830,133,559

287,586 22

696,427

760,925 90

4,795,234

12,007,854 3

75

12,960,972 1,223

21,487,005 69

14,503,035 5,627,924

JZ1

337,984

1,926,024,079 1,926,024,079

(13)

181,599,240

181,599,243

Transfers

In

2,003,201,717

383,815

8,632

2,440 11,898

J2L

2,004,005,152 2,004,005,152

Out

7,361 9,340

3,511,396 11,283,866

684 5,853,022

2,972,491

      (§1

31,025,561 31,025,561

Balance in Treasury Dec. 31, 2012

(Overdraft)

$ 99,683 34,888 180,983 34

130,936,673 (1,200,152) 287,679 77,799 84,018 758,892 7,526,475 33,310,314 49,302 10,203,139 17,400,131 (75) 8,784 4,999,699 389,747 4,426,916 167 966,331 5,403,485 (350) (30,722)

      (6,972)

356,760,654 356,811,688

63

792 1,506 4,066 2,111 8,475

Schedule 1 - Concluded CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT

Year Ended December 31, 2012      

Balance in Treasury Jan. 1, 2012 (Overdraft)

CONTINGENCY FUNDS - Concluded

1.       $ 1
2.       1,314
3.       1,337

Chicago Public Library - Maintenance and Operation Reserve for Tax Anticipation

Warrants and Interests - 1932      195

Municipal Tuberculosis Sanitarium Reserve for Tax Anticipation Warrants and Interest:

1. 138
2. 237
3. 25
4. 140

Total Contingency Funds       11,862

Total All Funds      $ 3,529,057,688

64

Receipts      Disbursements       Transfers            Balance in Treasury

Including Settlements    Including Settlements      Dec. 31,2012

Between Funds      Between Funds       In             Out       (Overdraft)

$      -        $      -        $      -        $      -        $ 1

1,314 1,337

195

138 237 25 140

11,862

$     7,750,074,870      $     7,749,200,051      $   5,276,753,745     $  5,276,753,745     $ 3,529,932,507

65

Schedule 2

CITY OF CHICAGO, ILLINOIS TREASURER'S ANNUAL STATEMENT CITY OF CHICAGO PAYROLL ACCOUNT Year Ended December 31, 2012

Cash Balance (Overdraft) January 1,2012            $ (60,260,828)

Cash Receipts (Covering Payroll Warrants Issued)             2,936,849,996

Total            2,876,589,168

Cash Distributions During 2012 (Payroll Checks Cleared)             2,938,201,771

Cash Balance (Overdraft) December 31, 2012            _$_      (61,612,603)

NOTE:

() Indicates overdraft reconciled with covering payroll warrants in transit to City Treasurer.

66

Schedule 3

CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Original Final

Budget      Budget Actual

GENERAL GOVERNMENT

OFFICE OF THE MAYOR - 01 -

.0000-Personal Services            $       5,142,155   $       5,142,155   $ 5,507,194

.0100-Contractual Services            298,900      298,900 291,802

.0200-Travel            24,832      24,832 20,771

.0300-Commodities             48,500      48,500      40,642

Total            5,514,387      5,514,387      5,860,409

OFFICE OF THE INSPECTOR GENERAL - 03 -

.0000-Personal Services            2,356,548      2,356,548 2,198,592

.0100-Contractual Services            234,616      234,616 209,160

.0200-Travel            4,433      4,433 4,164

.0300-Commodities            22,967      22,967 6,066

.0700-Contingencies             12,784      12,784      12,784

Total            2,631,348      2,631,348      2,430,765

OFFICE OF BUDGET AND MANAGEMENT - 05 -

.0000-Personal Services            1,584,772      1,584,772 1,792,663

.0100-Contractual Services            68,000      68,000 61,173

.0200-Travel            1,500      1,500 403

.0300-Commodities             6,050      6,050      3,193

Total            1,660,322      1,660,322      1,857,432

DEPARTMENT OF INNOVATION

AND TECHNOLOGY-06-

.0000-Personal Services            6,579,948      6,579,948 6,569,536

.0100-Contractual Services            12,209,770      12,209,770 12,545,572

.0200-Travel            7,500      7,500 232

.0300-Commodities             33,800      33,800      25,346

Total            18,831,018      18,831,018      19,140,685

CITY COUNCIL COMMITTEES CITY COUNCIL -15-

2005.0000-Personal Services      

2005.0100-Contractual Services      

2005.0200-Travel      

2005.0700-Contingencies      

.0982-Order of The City Council      

.9001-Employment of Personnel      

.9008-Aldermanic Expense Allowance      

2005.9010-Legal, Technical, Medical and Professional

Services, Appraisals, Consultants, Printers,

Court Reporters and Contractual Services:

To Be Expended Under the Direction of the

Chairman of the Committee on Finance      

15,216,703      15,216,703      14,951,962

93,040      93,040      92,917

6,000      6,000

43,000      43,000      43,401

1,000      1,000

1,326,000      1,326,000      698,056

3,664,000      3,664,000      3,498,505

92,072 92,072

67

Schedule 3 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Original Final

Budget      Budget Actual

GENERAL GOVERNMENT - Continued CITY COUNCIL COMMITTEES - Continued CITY COUNCIL -15 - Concluded

2005.9071-Contingent and Other Expenses for

Corporate Purposes not Otherwise Provided

for: To Be Expended Under Direction of the

Vice Mayor of the City Council            $      4,000   $      4,000   $      775

Total            20,445,815      20,445,815      19,285,615

COMMITTEE ON FINANCE -15 -

2010.0000-Personal Services            1,698,740      1,698,740 1,738,848

2010.0100-Contractual Services            145,800      145,800 109,800

2010.0200-Travel            8,000 8,000

2010.0300-Commodities            51,500      51,500 39,999

2010.0700-Contingencies            100      100 (8,921)

1. The Payment of Legal Fees Pursuant to Sec. 2-152-170 of the Municipal Code:

To Be Expended at the Direction

of the Committee on Finance            50,000 50,000

1. Legal Assistance to The City Council: To Be Expended at the Direction of the

Chairman of the Committee on Finance            50,000      50,000 92

2010.9010-Legal, Technical, Medical and Professional Services, Appraisals, Consultants, Printers, Court Reporters and Professional Services: To Be Expended at the Direction of the

Chairman of the Committee on Finance             92,500       92,500       44,383

Total            2,096,640      2,096,640 1,924,200

LEGISLATIVE INSPECTOR GENERAL

2015.0100-Contractual Services             60,000       260,000       260,000

Total            60,000      260,000 260,000

COMMITTEE ON THE BUDGET AND GOVERNMENT OPERATIONS -15-

2214.0000-Personal Services      

2214.0100-Contractual Services      

2214.0300-Commodities      

2214.0400-Equipment      

2214.0700-Contingencies      

Total      

468,750 468,750 414,317

15,000 15,000 15,955

12,000 12,000 12,000

9,500 9,500 9,500

15,000      15,000      23,767

520,250      520,250      475,539

COMMITTEE ON AVIATION - 15 -

2220.0000-Personal Services            102,843      102,843 82,137

2220.0100-Contractual Services            200 200

2220.0300-Commodities            500 500

68

Schedule 3 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Original Final

Budget      Budget Actual

GENERAL GOVERNMENT - Continued CITY COUNCIL COMMITTEES - Continued COMMITTEE ON AVIATION -15 - Concluded

2220.0700-Contingencies            $      750   $      750   $      -_

Total             104,293      104,293      82,137

COMMITTEE ON LICENSE AND CONSUMER PROTECTION -15-

2225.0000-Personal Services            102,081      102,081 187,720

2225.0100-Contractual Services            17,500 17,500

2225.0300-Commodities             500      500      499

Total             120,081      120,081      188,219

COMMITTEE ON POLICE AND FIRE -15-

2235.0000-Personal Services      

2235.0100-Contractual Services      

2235.0300-Commodities      

2235.0700-Contingencies      

Total      

119,289      119,289 146,118

1,000 1,000

1,000 1,000

500      500      

121,789      121,789      146,118

COMMITTEE ON HEALTH -15 -

2240.0000-Personal Services            87,670      87,670 96,500

2240.0100-Contractual Services            200 200

2240.0300-Commodities            800 800

2240.0700-Contingencies             500      500      -_

Total            89,170      89,170 96,500

COMMITTEE ON COMMITTEES, RULES AND ETHICS -15-

2245.0000-Personal Services            157,960      157,960 132,360

2245.0100-Contractual Services            2,000 2,000

2245.0300-Commodities             500      500      -_

Total            160,460      160,460 132,360

COMMITTEE ON ECONOMIC AND CAPITAL DEVELOPMENT -15 -

2255.0000-Personal Services                                                  107,635      107,635      104,843

2255.0100-Contractual Services                                                    1,000      1,000

2255.0300-Commodities                                                                500      500      427

2255.0700-Contingencies             1,000      1,000      313

Total             110,135      110,135      105,582

COMMITTEE ON EDUCATION - 15 -

2260.0000-Personal Services            200,609      200,609 203,835

2260.0100-Contractual Services            3,000 3,000

2260.0700-Contingencies             2,000      2,000      -_

Total             205,609      205,609      203,835

69

Schedule 3 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Original Final

Budget      Budget Actual

GENERAL GOVERNMENT - Continued

CITY COUNCIL COMMITTEES - Concluded

COMMITTEE ON ZONING -15 -

2275.0000-Personal Services            $      305,134   $      305,134   $ 303,551

2275.0100-Contractual Services            5,300      5,300 5,299

2275.0300-Commodities             74,700      74,700      80,455

'   Total             385,134      385,134      389,305

COMMITTEE ON HOUSING AND REAL ESTATE -15 -

2280.0000-Personal Services      

2280.0100-Contractual Services      

2280.0300-Commodities      

2280.0700-Contingencies      

Total      

192,406 192,406 184,922

1,550 1,550 1,539

400 400 354

2,150      2,150      1,876

196,506      196,506      188,691

COMMITTEE ON HUMAN RELATIONS -15 -

2286.0000-Personal Services            88,098      88,098 86,004

2286.0300-Commodities             1,000      1,000      2,637

Total            89,098      89,098 88,641

COMMITTEE ON HUMAN RELATIONS -15 -2290.0000-Personal Services

2290.0100-Contractual Services      

2290.0300-Commodities      

Total      

CITY COUNCIL LEGISLATIVE REFERENCE BUREAU-15-

2295.0000-Personal Services      

2295.0100-Contractual Services      

2295.0300-Commodities      

Total      

TOTAL CITY COUNCIL COMMITTEES

479,312      479,312 492,198

30,000 30,000

5,000      5,000      9,503

514,312      514,312      501,701

356,209      356,209 386,886

24,000      24,000 24,161

4,000      4,000      3,952

384,209      384,209      414,998

25,603,501      25,803,501 24,483,442

CITY CLERK-25-

.0000-Personal Services            2,406,222      2,406,222 2,318,397

.0100-Contractual Services            371,199      371,199 341,170

.0300-Commodities             74,540      74,540      70,048

Total            2,851,961      2,851,961      2,729,615

DEPARTMENT OF FINANCE -CITY COMPTROLLER - 27 -

2011.0000-Personal Services            3,027,360      3,027,360      2,822,633

2011.0100-Contractual Services            361,909      361,909      337,024

2011.0200-Travel            1,800      1,800      533

2011.0300-Commodities             42,200      42,200      36,308

Total            3,433,269      3,433,269      3,196,497

70

Schedule 3 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)

Year Ended December 31, 2012      

Original Final

Budget      Budget Actual

GENERAL GOVERNMENT - Continued DEPARTMENT OF FINANCE - Concluded Accounting and Financial Reporting - 27 -

2012.0000-Personal Services                                         $      3,527,585   $       3,527,585   $ 3,333,101

2012.0100-Contractual Services            762,139              762,139 706,672

2012.0200-Travel            4,825                  4,825 1,364

2012.0300-Commodities             27,440       27,440      25,005

Total            4,321,989      4,321,989      4,066,141

DEPARTMENT OF FINANCE -Financial Strategy and Operations - 27 -

2015.0000-Personal Services            5,373,630           5,373,630 5,373,912

2015.0100-Contractual Services            248,218              248,218 248,737

2015.0200-Travel            8,388                 8,388 7,226

2015.0300-Commodities            14,200                14,200 12,143

Total            5,644,436      5,644,436      5,642,019

DEPARTMENT OF FINANCE -Revenue Services and Operations - 27 -

2020.0000-Personal Services            18,500,124          18,500,124 19,188,011

2020.0100-Contractual Services            21,953,345          21,953,345 21,339,714

2020.0200-Travel            41,801                41,801 4,724

2020.0300-Commodities             291,009      291,009      160,897

Total            40,786,279      40,786,279      40,693,346

TOTAL FINANCE            54,185,973           54,185,973 53,598,003

CITY TREASURER-28-

.0000-Personal Services            1,790,315            1,790,315 1,770,130

.0100-Contractual Services            421,959              421,959 383,037

.0200-Travel            975                    975 135

.0300-Commodities             10,000      10,000      9,975

Total            2,223,249      2,223,249      2,163,277

DEPARTMENT OF ADMINISTRATIVE HEARINGS - 30 -

.0000-Personal Services            2,813,469           2,813,469 2,694,288

.0100-Contractual Services            4,417,581            4,417,581 4,223,516

.0200-Travel            2,000                  2,000 907

.0300-Commodities             46,325      46,325      42,185

Total            7,279,375      7,279,375      6,960,896

DEPARTMENT OF LAW - 31 -

.0000-Personal Services            24,671,438           24,671,438 24,904,276

.0100-Contractual Services            3,117,317           3,117,317 2,878,575

.0200-Travel            135,923               135,923 102,604

71

Schedule 3 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Original Final

Budget      Budget Actual

GENERAL GOVERNMENT - Continued DEPARTMENT OF LAW - 31 - Concluded

.0300-Commodities            $      151,145   $      151,145   $      141,773

Total            28,075,823      28,075,823 28,027,228

DEPARTMENT OF HUMAN RESOURCES - 33 -

.0000-Personal Services      

.0100-Contractual Services      

.0200-Travel      

.0300-Commodities      

.0900-Specific Purpose-General      

Total      

DEPARTMENT OF PROCUREMENT SERVICES - 35 -

.0000-Personal Services      

.0100-Contractual Services      

.0200-Travel      

.0300-Commodities      

Total      

4,619,373      4,619,373 4,222,547

779,586      779,586 511,443

2,360      2,360 2,838

56,915      56,915 15,815

170,000      170,000      (497,753)

5,628,234      5,628,234      4,254,890

4,505,431      4,505,431 3,980,154

975,597      975,597 442,211

3,190      3,190 2,575

39,000      39,000      29,244

5,523,218      5,523,218      4,454,184

FLEET AND FACILITY MANAGEMENT COMMISSIONER'S OFFICE - 38 -

2005.0000-Personal Services             287,809      287,809      241,330

Total            287,809      287,809 241,330

BUREAU OF FINANCE AND ADMINISTRATION - 38 ■

2103.0000-Personal Services       

2103.0100-Contractual Services      

2103.0200-Travel      

2103.0300-Commodities      

Total      

BUREAU OF FACILITY MANAGEMENT - 38 -

2126.0000-Personal Services      

2126.0100-Contractual Services      

2126.0200-Travel      

2126.0300-Commodities      

Total      

BUREAU OF ENERGY AND UTILITY MANAGEMENT - 38 -

2131.0000-Personal Services      

2131.0100-Contractual Services      

2131.0200-Travel      

2131.0300-Commodities      

2131.9000-Specific Purpose-General      

3,004,398 1,111,937 13,000 40,000

4,169,335

22,913,803 21,316,445 40,000 1,107,900

45,378,148

2,636,214 18,736,499

1,164 36,430,577

1,785

3,004,398 1,111,937 13,000 40,000

4,169,335

22,913,803 21,316,445 40,000 1,107,900

45,378,148

2,636,214 18,736,499

1,164 36,430,577

1,785

3,014,807 989,463 6,940 37,588 4,048,798

22,006,666 20,383,298 24,793 1,038,718 43,453,475

2,303,975 18,305,121 60

36,017,209

72

Schedule 3 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)

Year Ended December 31, 2012      

Original Final

Budget      Budget Actual

GENERAL GOVERNMENT - Continued BUREAU OF ENERGY AND UTILITY MANAGEMENT - 38 - Concluded

2131.9100-Specific Purpose-As Specified            $       1,609,898   $       1,609,898   $ 1,339,249

Total            59,416,137      59,416,137      57,965,614

FLEET OPERATIONS - 38 -

2140.0000-Personal Services      

2140.0100-Contractual Services      

2140.0300-Commodities      

Total      

TOTAL GENERAL SERVICES

33,235,604      33,235,604 31,849,650

12,369,041      12,369,041 11,311,920

7,255,156      7,255,156      7,312,945

52,859,801      52,859,801      50,474,515

162,111,230      162,111,230 156,183,732

BOARD OF ELECTION COMMISSIONERS -ELECTION AND ADMINISTRATION DIVISION - 39 -

2005.0000-Personal Services            10,339,972           10,339,972 8,560,414

2005.0100-Contractual Services            3,666,893            3,666,893 3,543,933

2005.0200-Travel            21,319                21,319 12,741

2005.0300-Commodities             294,549      294,549      294,509

Total            14,322,733      14,322,733      12,411,596

TOTAL ELECTION COMMISSIONERS            14,322,733           14,322,733           12,411,596

COMMISSION ON HUMAN RELATIONS - 45 -

2005.0000-Personal Services      

2005.0100-Contractual Services      

2005.0200-Travel      

2005.0300-Commodities      

Total      

MAYOR'S OFFICE FOR PEOPLE WITH DISABILITIES - 48 -

2005.0000-Personal Services      

2005.0100-Contractual Services      

2005.0200-Travel      

2005.0300-Commodities      

Total      

DEPARTMENT OF FAMILY AND SUPPORT SERVICES - 50 -

2005.0000-Personal Services      

2005.0100-Contractual Services      

2005.0200-Travel      

2005.0300-Commodities      

.9025-For Payment of Emergency Shelter..

1,147,221      1,147,221 1,098,076

90,997      90,997 58,630

1,841      1,841 1,408

8,912      8,912      3,649

1,248,971      1,248,971      1,161,763

964,986      964,986 1,034,698

150,573      150,573 101,721

13,446      13,446 9,764

11,189      11,189      6,797

1,140,194      1,140,194      1,152,980

1,801,842      1,801,842      3,684,305

3,586,207      3,586,207      3,275,318

28,292      28,292      4,159

32,616      32,616      26,153

7,113,574      7,113,574      6,744,114

73

Schedule 3 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Actual

Original Budget

Final Budget

GENERAL GOVERNMENT - Continued DEPARTMENT OF FAMILY AND SUPPORT SERVICES - 50 - Concluded

.9065-Youth Training Programs            $ 500,000

.9132-Juvenile Intervention Service Center(JISC)       500,000

.9133-Transitional Housing-Supportive Services      

.9142-Ex-Offender/Re-Entry Initiatives            1,490,000

.9143-Projects for Target Populations             650,000

Total       15,702,531

DEPARTMENT OF HOUSING AND ECONOMIC DEVELOPMENT - 54 -

2005.0000-Personal Services            8,883,933

2005.0100-Contractual Services            1,883,095

2005.0200-Travel            5,964

2005.0300-Commodities            45,652

.0938-For the Funding of the City's Contribution to

the Low Income Housing Trust Fund            3,500,000

.9110-Property Management,

Maintenance and Security            917,348

.9141-Business Services Projects            110,000

.9183-Foreclosure Prevention Program            300,000

.9211-Single-Family Troubled Building Initiative            100,000

.9212-Multi-Family Troubled Building Initiative            100,000

.9213-Affordable Housing Density Program             4,361,228

Total            20,207,220

POLICE BOARD - 55 -

2005.0000-Personal Services            321,715

2005.0100-Contractual Services       73,624

2005.0200-Travel       500

2005.0300-Commodities             1,100

Total             396,939

LICENSE APPEAL COMMISSION - 77 -

2005.0000-Personal Services       63,276

2005.0100-Contractual Services            105,265

2005.0300-Commodities             800

Total             169,341

BOARD OF ETHICS - 78 -

2005.0000-Personal Services       665,739

2005.0100-Contractual Services            121,825

2005.0200-Travel       3,000

2005.0300-Commodities             600

Total             791,164

500,000 500,000

1,490,000 650,000

15,702,531

8,883,933 1,883,095 5,964 45,652

3,500,000

917,348 110,000 300,000 100,000 100,000 4,361,228

20,207,220

321,715 73,624 500 1,100

396,939

63,276 105,265 800

169,341

665,739 121,825 3,000 600

791,164

500,000 362,701 1,485,899 650,000

16,732,649

8,557,489 1,552,129 3,239 34,031

3,500,000

864,131

300,000

100,000 3,947,281

18,858,301

314,376 70,717 22 714

385,828

64,548 88,516 752

153,816

656,087 43,457 776 70

700,389

74

Schedule 3 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Original Final

Budget      Budget Actual

GENERAL GOVERNMENT - Concluded DEPARTMENT OF FINANCE - GENERAL - 99 -

2005.0000-Personal Services            $    433,662,657   $    433,662,657   $ 389,912,058

2005.0100-Contractual Services            39,571,837          39,571,837 37,789,176

.0931-For Payment of Non-Tort Judgements            7,118,042           7,118,042 14,709,251

.0934-Claims for Damages and Liabilities Against the

City when Ordered Paid by the City Council            100,000              100,000 83,417

.0939-Reimbursement of Condominium and

Cooperative Garbage Collection Fees            7,000,000           7,000,000 6,958,050

.0991-To Provide for Matching and Supplementary Grant Funds Currently in Effect as Well

as New Grants            4,176,274            4,176,274 4,058,636

.9011-Summer Jobs Program            2,700,000           2,700,000 5,461,227

.9027-For the City Contribution to Social

Security Tax            1,044,787            1,044,787 373,797

.9030-After School Programs            3,100,000           3,100,000 2,338,773

.9076-City's Contribution to Medicare Tax            38,055,840          38,055,840 27,235,786

.9121-For Payment of Costs Associated with Lobbyist

Activities on Behalf of the City of Chicago            480,000              480,000 360,504

.9165-For Expenses Related to the Outsourcing

of the Data Center            2,466,024           2,466,024 2,726,398

.9168-For Children's Advocacy Center            900,000              900,000 1,125,000

.9176-West Nile Virus Program            725,000              725,000 (355,912)

.9180-For World Business Chicago Program            1,000,000            1,000,000            1,000,000

.9214- Chicago Park District Program            -             2,500,000 2,500,000

.9232-lnnovation Loan Fund            20,000,000          20,000,000 19,200,000

.9635-To Reimburse Midway Fund for Fire

Department Salaries            3,919,792            3,919,792 970,230

.9636-To Reimburse Midway Fund for Fire

Department Benefits            1,076,104            1,076,104 1,076,104

.9638-For Corporate Subsidy of Chicago Public

Library            8,965,000      8,965,000      7,965,000

Total            576,061,357         578,561,357 525,487,496

TOTAL GENERAL GOVERNMENT            952,160,089      954,860,089 889,189,377

HEALTH

DEPARTMENT OF PUBLIC HEALTH - 41 -

.0000-Personal Services            13,920,105      13,920,105 15,589,286

.0100-Contractual Services            5,883,425      5,883,425 5,443,440

.0200-Travel            96,957      96,957 17,186

.0300-Commodities            848,293      848,293 646,775

.0445-Equipment            7,916      7,916 2,407

.0931-Refunds            -      - 438

.9067-For Physical Exams Required for

Candidates and Promotions            7,140      7,140

75

Schedule 3 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Original Final

Budget      Budget Actual

HEALTH - Concluded

DEPARTMENT OF PUBLIC HEALTH - 41 - Concluded Commissioner of the Health Department Under the Direction of the Budget Director. .9066-Hospital Reimbursement for At-risk Patients .9129-For Supplementary Funding for HIV/AIDS Related Programs Administered by the Department of Health at the Direction

of the Budget Director      

Total      

TOTAL HEALTH      

$      629,500   $      629,500   $ 627,500

338,500      338,500 11,712

3,675,000      3,675,000      3,557,379

25,406,836      25,406,836      25,896,122

25,406,836      25,406,836      25,896,122

PUBLIC SAFETY

INDEPENDENT POLICE REVIEW AUTHORITY - 56 -

2005.0000-Personal Services       7,564,586

2005.0100-Contractual Services       233,538

2005.0200-Travel       7,905

2005.0300-Commodities             63,062

Total       7,869,091

DEPARTMENT OF POLICE - 57 -

1005.0000-Personal Services            1,185,713,278

1005.0100-Contractual Services            6,791,802

1005.0200-Travel            21,900

1005.0300-Commodities       3,850,567

1005.0400-Equipment       50,399

1005.0931-For the Payment of Tort and Non-Tort

Judgements, Outside Counsel Expenses

and Expert Costs, as Approved by the

Corporation Counsel and Budget Director       14,844,350

1005.0937-For Cost and Administration of Hospital

and Medical Expenses for Employees

Injured on Duty Who Are Not Covered Under

Workers Compensation Act       19,444,049

1005.9067-For Physical Exams             1,096,113

Total       1,231,812,458

CAPS IMPLEMENTATION COMMUNICATION - 57 -

1007.0000-Personal Services            3,469,511

1007.0100-Contractual Services       1,089,308

4,558,819

CAPS IMPLEMENTATION OFFICE - 57 -

2605.0200-Travel       3,705

7,564,586 233,538 7,905 63,062

7,869,091

1,185,713,278 6,791,802

21,900 3,850,567

50,399

14,844,350

19,444,049 1,096,113 1,231,812,458

3,469,511 1,089,308 4,558,819

3,705

7,371,342 223,233 1,963 45,227

7,641,764

1,190,766,697 6,756,175

20,543 3,755,360

48,692

56,723,628

17,609,707 (7,392) 1,275,673,409

3,401,194 753,382 4,154,576

76

Schedule 3 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Original Final

Budget      Budget Actual

PUBLIC SAFETY - Continued

CAPS IMPLEMENTATION OFFICE - 57 - Concluded

2605.0300-Commodities            $      30,903   $      30,903 $      

Total             34,608      34,608      

TOTAL POLICE DEPARTMENT            1,236,405,885       1,236,405,885 1,279,827,985

OFFICE OF EMERGENCY MANAGEMENT AND COMMUNICATIONS-58-

.0000-Personal Services      

.0100-Contractual Services      

.0200-Travel      

.0300-Commodities      

.0401-Tools Less Than or Equal to $100/Unit      

Total      

FIRE DEPARTMENT - 59 -

.0000-Personal Services      

.0100-Contractual Services      

.0200-Travel      

.0300-Commodities      

.0400-Equipment      

.0931-Forthe Payment of Tort and Non-Tort

Judgements, Outside Counsel Expenses

and Expert Costs, as Approved by the

Corporation Counsel and Budget Director      

.0937-For Cost and Administration of Hospital

and Medical Expenses for Employees

Injured on Duty Who Are Not Covered Under

Workers Compensation Act      

.9067-For Physical Exams      

Total      

DEPARTMENT OF BUILDINGS - 67 -

.0000-Personal Services      

.0100-Contractual Services      

.0200-Travel      

.0300-Commodities      

.0931-For the Payment of Tort and Non-Tort

Judgements, Outside Counsel Expenses

and Expert Costs, as Approved by the

Corporation Counsel and Budget Director      

.0989-For Refunds for Cancelled Voucher Warrants

and Payroll Checks and for Refunding      

Duplicate Payments and Payments      

Made in Error      

Total      

54,996,097 21,547,420 110,050 1,716,222 45,000 78,414,789

498,646,895 6,275,839

113,080 2,485,525

113,840

2,702,000

10,350,000 310,000 520,997,179

15,640,322 3,323,973 157,500 53,402

300,000

150,000 19,625,197

54,996,097 21,547,420 110,050 1,716,222 45,000 78,414,789

498,646,895 6,275,839

113,080 2,485,525

113,840

2,702,000

10,350,000 310,000 520,997,179

15,640,322 3,323,973 157,500 53,402

300,000

150,000 19,625,197

60,559,117 20,953,905 121,244 1,652,966 45,000 83,332,232

519,872,364 5,853,727

21,846 2,261,569

86,783

(4,090,813)

6,852,450 289,808 531,147,732

15,227,183 2,840,214 133,169 30,089

43,811

160,824 18,435,291

77

Schedule 3 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Actual

Original Budget

Final Budget

PUBLIC SAFETY - Concluded DEPARTMENT OF BUSINESS AFFAIRS AND CONSUMER PROTECTION - 70 -

.0000-Personal Services            $ 12,370,083

.0100-Contractual Services            1,392,123

.0200-Travel            57,074

.0300-Commodities             171,496

Total            13,990,776

COMMISSION ON ANIMAL CARE AND CONTROL - 73 -

.0000-Personal Services            3,232,290

.0100-Contractual Services            504,061

.0200-Travel            479

.0300-Commodities             413,442

Total            4,150,272

TOTAL PUBLIC SAFETY            1,881,453,189

12,370,083 1,392,123 57,074 171,496

13,990,776

3,232,290 504,061 479 413,442

4,150,272

1,881,453,189

12,241,362 1,317,783 52,729 157,401

13,769,275

3,601,799 536,485

364,762 4,503,047

1,938,657,327

STREETS AND SANITATION COMMISSIONER'S OFFICE - 81 -

2005.0000-Personal Services      

2005.0100-Contractual Services      

2005.0200-Travel      

2005.0300-Commodities      

2005.0931-For the Payment of Tort and Non-Tort

Judgements, Outside Counsel Expenses

and Expert Costs, as Approved by the

Corporation Counsel and Budget Director

Total      

COMMISSIONER'S OFFICE -ADMINISTRATIVE SERVICES DIVISION - 81 -

2006.0000-Personal Services      

2006.0100-Contractual Services      

2006.0200-Travel      

2006.0300-Commodities      

2006.0440-Machinery and Equipment      

Total      

BUREAU OF SANITATION - 81 -

2020.0000-Personal Services      

2020.0100-Contractual Services      

2020.0200-Travel      

2020.0300-Commodities      

1,023,329      1,023,329      1,001,647

144,900      144,900      138,273

500      500      297

11,000      11,000      6,903

540,000      540,000      166,499

1,719,729      1,719,729      1,313,618

6,662,161      6,662,161 5,727,006

49,415      49,415 46,337

600 600

11,600      11,600 7,464

100      100      -_

6,723,876      6,723,876      5,780,806

88,637,271      88,637,271      90,819,653

46,489,330      46,489,330      44,697,259

1,500      1,500      905

165,752      165,752      129,601

78

BUDGET AND ACTUAL (BUDGETARY BASIS)

Schedule 3 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES Year Ended December 31, 2012

Actual

Original Budget

Final Budget

STREETS AND SANITATION - Concluded BUREAU OF SANITATION - 81 - Concluded

2020.0400-Equipment       _$_

Total       _

BUREAU OF RODENT CONTROL - 81 -

2025.0000-Personal Services      

2025.0100-Contractual Services      

2025.0300-Commodities      

2025.0400-Equipment             

Total       _

BUREAU OF STREET OPERATIONS - 81 -

2045.0000-Personal Services      

2045.0100-Contractual Services      

2045.0200-Travel      

2045.0300-Commodities      

2045.0400-Equipment             

Total             

BUREAU OF FORESTRY - 81 -

2060.0000-Personal Services      

2060.0100-Contractual Services      

2060.0200-Travel      

2060.0300-Commodities      

2060.0400-Equipment             

Total       _

TOTAL STREETS AND SANITATION      

70,137 $

135,363,990

5,289,262 72,798 94,336 3,000

5,459,396

14,993,590 1,847,432 500 373,325 17,100

17,231,947

11,243,704 782,331 32,250 81,854 5,189 12,145,328

178,644,266

70,137 $

135,363,990

5,289,262 72,798 94,336 3,000

5,459,396

14,993,590 1,847,432 500 373,325 17,100

17,231,947

11,243,704 782,331 32,250 81,854 5,189 12,145,328

178,644,266

53,824

135,701,242

5,259,868 70,191 66,404

5,396,463

16,765,410 1,669,182

298,755 3,091

18,736,438

10,636,284 656,351 45,864 70,620 393

11,409,512

178,338,080

TRANSPORTATION

OFFICE OF THE COMMISSIONER - 84 -

2105.0000-Personal Services      

2105.0100-Contractual Services      

2105.0200-Travel      

2105.0300-Commodities      

2105.0931-For the Payment of Tort and Non-Tort

Judgements, Outside Counsel Expenses

and Expert Costs, as Approved by the

Corporation Counsel and Budget Director

Total      

DIVISION OF ADMINISTRATION - 84 -

2115.0000-Personal Services      

2115.0100-Contractual Services      

2115.0200-Travel      

1,274,114      1,274,114      1,060,669

325,237      325,237      321,552

1,800      1,800      827

8,000      8,000      5,602

1,890,000      1,890,000      (79,411)

3,499,151      3,499,151      1,309,239

5,115,010      5,115,010 5,036,355

275,410      275,410 51,403

1,300      1,300 368

i

79

Schedule 3 - Continued CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Actual

Original Budget

Final Budget

TRANSPORTATION - Concluded

DIVISION OF ADMINISTRATION - 84 - Concluded

2115.0300-Commodities            $      57,000 $

Total            5,448,720 _

697,117 18,685,760 300 36,117 19,419,294

DIVISION OF INFRASTRUCTURE MANAGEMENT - 84 -

2135.0000-Personal Services      

2135.0100-Contractual Services      

2135.0200-Travel      

2135.0300-Commodities      

Total      

3,718,432 447,694 10,080 25,450 1,500 300,000

DIVISION OF PROJECT DEVELOPMENT - 84 -

2145.0000-Personal Services      

2145.0100-Contractual Services      

2145.0200-Travel      

2145.0300-Commodities      

1. lmprovements to Alleys      
2. Ex-Offender/Re-Entry Initiatives            

Total       4,503,156

10,897,726 445,734 74,700 574,449

11,992,609

DIVISION OF ELECTRICAL OPERATIONS - 84 -

2150.0000-Personal Services      

2150.0100-Contractual Services      

2150.0200-Travel      

2150.0300-Commodities             

10,122,253 318,312 11,400 279,400 15,325 10,746,690

DIVISION OF IN-HOUSE CONSTRUCTION - 84 -

2155.0000-Personal Services      

2155.0100-Contractual Services      

2155.0200-Travel      

2155.0300-Commodities      

2155.0400-Equipment             

Total             

TOTAL TRANSPORTATION       55,609,620

57,000 $

5,448,720

697,117 18,685,760 300 36,117

19,419,294

3,718,432 447,694 10,080 25,450 1,500 300,000 4,503,156

10,897,726 445,734 74,700 574,449

11,992,609

10,122,253 318,312 11,400 279,400 15,325 10,746,690

55,609,620

55,999

5,144,125

681,867 18,684,655

35,233

19,401,755

3,544,190 442,094 1,416 24,412 523 300,000

4,312,635

10,913,926 438,650 62,339 567,460

11,982,376

9,174,821 287,596 6,212 279,602 15,225 9,763,457

51,913,586

1,645,000

1,645,000

1,644,998

1,645,000

1,645,000

1,644,998

PRINCIPAL RETIREMENT

2005.0100-Certificates of Participation      

TOTAL PRINCIPAL RETIREMENT

80

Schedule 3 - Concluded CITY OF CHICAGO, ILLINOIS GENERAL FUND

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Original Final

Budget      Budget Actual

INTEREST AND OTHER FISCAL CHARGES

2005.9540-Certificates of Participation            $      735,000   $      735,000   $      732,780

TOTAL INTEREST AND OTHER

FISCAL CHARGES             735,000      735,000      732,780

TOTAL GENERAL FUND            3,095,654,000       3,098,354,000 3,086,372,270

HOUSING REVENUE

2005.0000-Personal Services            1,081,000      1,081,000      976,967

2005.0100-Contractual Services            6,270,000      6,270,000      4,690,354

2005.0200-Travel            890,000      890,000      890,263

2005.0300-Commodities            420,000      420,000      194,460

Total            8,661,000      8,661,000      6,752,044

TOTAL             $ 3,104,315,000   $ 3,107,015,000   $ 3,093,124,314

81

Schedule 4

CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Actual

Original Budget

Final Budget

VEHICLE TAX FUND

GENERAL GOVERNMENT

CITY COUNCIL COMMITTEES -15 -

COMMITTEE ON TRANSPORTATION AND PUBLIC WAY

2230.0000-Personal Services            $      403,054  $      403,054  $ 395,925

2230.9000-General Office Expenses             30,000      30,000      29,905

Total             433,054      433,054      425,830

COMMITTEE ON TRAFFIC CONTROL AND SAFETY

2265.0000-Personal Services            210,000             210,000 187,290

2265.0300-Commodities             5^000      5JJ00      1,610

Total             215,000      215,000      188,900

TOTAL CITY COUNCIL COMMITTEES             648,054      648,054      614,730

CITY CLERK-25-

.0000-Personal Services            4,082,369           4,082,369 3,773,910

.0100-Contractual Services            1,531,614            1,531,614 1,454,681

.0200-Travel            38,500               38,500 20,983

.0300-Commodities            492,370             492,370 436,870

.9400-Specific Purpose-General             24,816      24,816      24,816

Total            6,169,669      6,169,669      5,711,260

DEPARTMENT OF FINANCE - 27 -

.0000-Personal Services            417,644      417,644 365,378

.0100-Contractual Services            5,600 5,600

.0300-Commodities             1^000      ]^000      150_

Total             424,244      424,244      365,528

DEPARTMENT OF LAW-31 -

.0000-Personal Services            1,200,092      1,200,092      1,073,092

.0100-Contractual Services            167,999      167,999      148,204

.0200-Travel            6,823      6,823      4,824

.0300-Commodities            11,448      11,448      10,756

.9400-Specific Purpose-General             1,189      1,189      1,189

Total            1,387,551      1,387,551      1,238,065

82

Schedule 4 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Original               Final Actual

Budget      Budget      

VEHICLE TAX FUND - Continued

GENERAL GOVERNMENT - Concluded

DEPARTMENT OF FLEET AND FACILITY MANAGEMENT - 38 -

2126.0100-Contractual Services            $         716,819      $         716,819      $ 614,478

2131.0100-Contractual Services            1,799,985      1,799,985      1,642,745

2131.0300-Commodities            9,598,652      9,598,652      6,950,456

Total            12,115,456      12,115,456 9,207,679

DEPARTMENT OF BUILDINGS - 67 -

.0000-Personal Services            397,200             397,200 349,250

.0100-Contractual Services            80,000 80,000

.0200-Travel             -      -      58_

Total            477,200      477,200      349,308

DEPARTMENT OF FINANCE - GENERAL - 99 -

2005.0000-Personal Services            22,636,841           22,636,841 25,767,239

2005.0100-Contractual Services            3,260,589           3,260,589 3,577,290

2005.0931-Tort and Non-Tort Judgments, Outside

Counsel and Expert Costs            20,000               20,000 20,000

2005.0934-Claims for Damage and Liability            375,000             375,000 293,787

2005.0989-Payment of Claims and Refunds of

Vehicle License Fees            100,000             100,000 99,420

2005.0991-Provide for Matching and Supplementary Grants:

To Be Expended Under the Direction of the Budget Director            1,320,698            1,320,698 289,100

2005.9027-City's Contribution to Social Security Tax            24,162               24,162 24,162

2005.9076-City's Contribution to Medicare Tax            1,024,803            1,024,803      1,024,803

2005.9610-To Reimburse Corporate Fund for Provision for Pension            5,307,985           5,307,985 5,307,985

2005.9633-To Reimburse Corporate Fund for Expenses

for Municipal Services Chargeable to Vehicle Fund            15,087,000      15,087,000      15,087,000

Total            49,157,078      49,157,078      51,490,786

TOTAL GENERAL GOVERNMENT            70,379,252      70,379,252      68,977,356

STREETS AND SANITATION

BUREAU OF SANITATION - 81 -

2020.0000-Personal Services            6,097,606           6,097,606 6,024,684

2020.0100-Contractual Services            2,836,150           2,836,150 2,832,807

83

Schedule 4 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Original               Final Actual

Budget      Budget      

VEHICLE TAX FUND - Continued

STREETS AND SANITATION - Concluded

BUREAU OF SANITATION - 81 - Concluded

2020.0300-Commodities and Materials            $           17,590  $           17,590  $ 2,608

2020.0400-Equipment            48,060              48,060 46,755

2020.9400-Specific Purpose-General             27,600      27,600      48,600

Total            9,027,006            9,027,006 8,955,454

BUREAU OF STREET OPERATIONS - 81 -

2045.0000-Personal Services            6,101,193      6,101,193      5,040,687

2045.0100-Contractual Services            2,327,891      2,327,891      1,786,710

2045.0200-Travel            1,000      1,000

2045.0300-Commodities            318,845      318,845      287,145

2045.0400-Equipment            64,100      64,100      30,079

2045.9400-Specific Purpose-General             6,000      6,000      10,825

Total            8,819,029      8,819,029      7,155,446

BUREAU OF TRAFFIC SERVICES - 81 -

2070.0000-Personal Services            13,857,305      13,857,305      12,522,490

2070.0100-Contractual Services            8,894,073      8,894,073      7,546,310

2070.0200-Travel            4,200      4,200

2070.0300-Commodities            258,897      258,897      200,707

2070.0989-Payment of Claims and Refunds of

Vehicle License Fees            671,000      671,000      670,910

2070.0992-For Tow Storage Refund            97,000      97,000      96,905

2070.9400-Specific Purpose-General             51,350      51,350      51,350

Total            23,833,825      23,833,825      21,088,672

TOTAL STREETS AND SANITATION            41,679,860      41,679,860 37,199,572

TRANSPORTATION

DIVISION OF ENGINEERING - 84 -

2125.0000-Personal Services            6,022,129           6,022,129 5,537,526

2125.0100-Contractual Services            754,212             754,212 738,446

2125.0200-Travel            6,978                6,978 12,347

2125.0300-Commodities             50,314      50,314      (60,086)

Total            6,833,633           6,833,633 6,228,233

84

Schedule 4 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Original Final Actual

Budget      Budget      

VEHICLE TAX FUND - Continued

TRANSPORTATION - Concluded

DIVISION OF INFRASTRUCTURE MANAGEMENT - 84 -

2135.0000-Personal Services            $        6,348,680  $        6,348,680  $ 5,795,158

2135.0100-Contractual Services            877,759             877,759 873,095

2135.0200-Travel            135,634             135,634 78,401

2135.0300-Commodities            678,146              678,146 727,203

2135.9400-Specific Purpose-General             3,000      3,000      3,000

Total            8,043,219           8,043,219 7,476,857

DIVISION OF INFRASTRUCTURE MANAGEMENT - 84 -

2145.0000-Personal Services            655,547             655,547 523,984

2145.0100-Contractual Services            474,750             474,750 469,840

2145.0200-Travel            2,200                2,200 147

2145.0300-Commodities             9J300      $U00      7,261

Total            1,141,797            1,141,797 1,001,232

2150.0000-Personal Services            11,764,850      11,764,850 10,555,833

2150.0100-Contractual Services            1,210,929      1,210,929 1,204,726

2150.0200-Travel            107,560      107,560 75,253

2150.0300-Commodities            751,050      751,050 741,464

2150.0400-Equipment             4^450      4^450      3,643

Total            13,838,839      13,838,839 12,580,919

BUREAU OF STREETS - 84 -

2155.0000-Personal Services      

2155.0100-Contractual Services      

2155.0200-Travel      

2155.0300-Commodities      

2155.0400-Equipment      

2155.9064-Forthe Restoration of Curbs, Gutters,

Sidewalks and Pavement      

2155.9438-For Service Provided by

the Department of Fleet and Facility Management. 2155.9481-For Service Provided by

the Department of Streets and Sanitation      

Total      

16,098,410      16,098,410      16,135,133

903,680      903,680      794,097

14,925      14,925      13,891

878,570      878,570      865,978

2,815      2,815      2,365

75,000      75,000      73,793

33,000      33,000

35,000      35,000      30,375

18,041,400      18,041,400      17,915,632

TOTAL TRANSPORTATION            47,898,888      47,898,888 45,202,873

85

Schedule 4 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)

Year Ended December 31, 2012      

Original               Final Actual

Budget      Budget      

VEHICLE TAX FUND ■ Concluded

TOTAL VEHICLE TAX FUND            $      159,958,000  $      159,958,000  $ 151,379,801

MOTOR FUEL TAX AND PROJECT FUND FLEET AND FACILITY MANAGEMENT

2131.XXXX-Bureau of Asset Management            12,135,000      12,135,000      13,149,980

TOTAL FLEET AND FACILITY MANAGEMENT            12,135,000      12,135,000      13,149,980

STREETS AND SANITATION - 81 -

2047.XXXX-Bureau of Street Operations            20,350,550      20,350,550      18,687,735

TOTAL STREETS AND SANITATION            20,350,550      20,350,550      18,687,735

TRANSPORTATION - 84 -

2005.XXXX-C.T.A./Regional Transportation Authority Agreement            3,000,000           3,000,000 3,000,000

2150.XXXX-Bureau of Electricity            3,548,874           3,548,874 3,430,719

2155.XXXX-Bridge Maintenance            8,747,264           8,747,264 7,555,973

2070.XXXX-Bureau of Streets            8,300,312           8,300,312 8,487,238

1127.XXXX-Miscellaneous             9,289,000      9,289,000      58,861

TOTAL TRANSPORTATION            32,885,450      32,885,450      22,532,791

TOTAL MOTOR FUEL TAX AND PROJECT FUND            65,371,000      65,371,000 54,370,506

PENSION FUND

EMPLOYEE PENSIONS

MUNICIPAL EMPLOYEES' ANNUITY AND BENEFIT 2025.0976-City's Contribution to the Employees'

Annuity and Benefit Fund      

Total      

159,003,480 159,003,480

159,003,480 159,003,480

163,942,544 163,942,544

86

Schedule 4 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Original Final Actual

Budget      Budget      

PENSION FUND - Concluded

EMPLOYEE PENSIONS - Concluded

$     204,420,400  $     204,420,400  $ 189,774,184

204,420,400      204,420,400 189,774,184

POLICEMEN'S EMPLOYEES' ANNUITY AND BENEFIT 2025.0976-City's Contribution to the Employees'

Annuity and Benefit Fund      

Total      

FIREMEN'S EMPLOYEES' ANNUITY AND BENEFIT

2025.0916-Expenditures for Amendments to ILCS 40, Act 5

Section 6-211(G)      

2025.0976-City's Contribution to the Employees'

Annuity and Benefit Fund      

Total      

1,410,000 1,410,000

83,033,560      83,033,560      89,265,334

84,443,560      84,443,560 89,265,334

LABORERS' EMPLOYEES'ANNUITY AND BENEFIT 2025.0976-City's Contribution to the Employees'

Annuity and Benefit Fund            14,450,920      14,450,920      15,969,244

Total            14,450,920      14,450,920      15,969,244

TOTAL EMPLOYEE PENSIONS            462,318,360         462,318,360 458,951,306

TOTAL PENSION FUND            462,318,360         462,318,360 458,951,306

MISCELLANEOUS FUND

EMERGENCY COMMUNICATION

GENERAL GOVERNMENT

DEPARTMENT OF FINANCE - GENERAL - 99 -

2005.0100-Contractual Services            500,000             500,000 483,606

2005.9639-Department Salaries            71,933,000      71,933,000      65,048,312

Total            72,433,000           72,433,000 65,531,918

TOTAL EMERGENCY COMMUNICATION            72,433,000      72,433,000 65,531,918

87

Schedule 4 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Original Final Actual

Budget      Budget      

MISCELLANEOUS FUND ■ Continued

SPECIAL DEPOSIT ACTIVITIES GENERAL GOVERNMENT

DEPARTMENT OF HOUSING & ECONOMIC DEVELOPMENT - 54 -

2005.9999-Miscellaneous            $      522,000  $      522,000 $

PUBLIC SAFETY

DEPARTMENT OF POLICE - 57 -

2005.9999-Miscellaneous            4,764,000      4,764,000 1,657,681

TOTAL SPECIAL DEPOSIT ACTIVITIES            5,286,000      5,286,000      1,657,681

COMMONWEALTH EDISON SETTLEMENT

GENERAL GOVERNMENT

DEPARTMENT OF BUDGET & MANAGEMENT - 05 -

2005.9999-Miscellaneous            6,114,000      6,114,000      1,092,530

DEPARTMENT OF LAW - 31 -

2005.9999-Miscellaneous            3,890,000 3,890,000

TOTAL COMMONWEALTH SETTLEMENT            10,004,000      10,004,000      1,092,530

ALLIED SETTLEMENT FUND GENERAL GOVERNMENT DEPARTMENT OF LAW - 31 -

2005.9999-Miscellaneous             230,000      230,000      200,000

Total             230,000      230,000      200,000

DEPARTMENT OF PROCUREMENT SERVICES - 35 -

2005.0100-Contractual            1,222,500      1,222,500 867,856

2005.0400-Equipment            48,320      48,320 924

88

I

Schedule 4 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)

Year Ended December 31, 2012      

Original               Final Actual

Budget      Budget      

MISCELLANEOUS FUND ■ Concluded

ALLIED SETTLEMENT FUND - Concluded

DEPARTMENT OF PROCUREMENT SERVICES - 35 - Concluded

2005.9999-Miscellaneous            $        1,500,000  $        1,500,000  $ 280,000

Total            2,770,820      2,770,820      1,148,780

TOTAL ALLIED SETTLEMENT            3,000,820      3,000,820      1,348,780

CTA REAL PROPERTY TRANSFER TAX

FINANCE GENERAL - 99 -

2005.9205-For Distribution of the Net Proceeds of the Real Property

Transfer Tax-CTA Portion            29,078,000          29,078,000 39,283,056

2005.9640-To Reimburse Corporate Fund for Costs Incurred for

Collection of the Real Property Transfer Tax-CTA Portion             294,000      294,000      ^_

Total            29,372,000          29,372,000 39,283,056

TOTAL CTA REAL PROPERTY TRANSFER TAX            29,372,000      29,372,000 39,283,056

TOTAL MISCELLANEOUS FUND            120,095,820      120,095,820 108,913,965

CHICAGO PUBLIC LIBRARY FUND

LIBRARY BUILDINGS AND SITES GENERAL GOVERNMENT

DEPARTMENT OF FLEET AND FACILITY MANAGEMENT - 38 -

2126.0100-Contractual Services            2,285,434      2,285,434 1,933,523

2126.0300-Commodities            758,680      758,680 669,226

2131.0100-Contractual Services            1,623,886      1,623,886 1,598,713

Total            4,668,000      4,668,000      4,201,462

TOTAL GENERAL GOVERNMENT            4,668,000      4,668,000 4,201,462

89

Schedule 4 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31,2012

Original               Final Actual

Budget      Budget      

CHICAGO PUBLIC LIBRARY FUND ■ Continued

LIBRARY BUILDINGS AND SITES - Concluded

CULTURAL AND RECREATIONAL

CHICAGO PUBLIC LIBRARY - 91 -

2005.0100-Contractual Services            $      450,000  $      450,000  $ 310,503

TOTAL CULTURAL AND RECREATIONAL            450,000      450,000 310,503

INTEREST AND OTHER FISCAL CHARGES - 99

2005.0955-lnterest on Daily Tender Notes             166,000      166,000      41,709

TOTAL INTEREST AND OTHER FISCAL CHARGES            166,000      166,000 41,709

TOTAL LIBRARY BUILDINGS AND SITES            5,284,000      5,284,000 4,553,674

LIBRARY MAINTENANCE AND OPERATIONS

GENERAL GOVERNMENT

DEPARTMENT OF FLEET AND FACILITY MANAGEMENT - 38 -

BUREAU OF FACILITY MANAGEMENT

2126.0000-Personal Services            1,691,258      1,691,258 3,379,144

2126.0100-Contractual Services            4,017,260      4,017,260 2,355,977

2126.0200-Travel            10,750      10,750 4,570

Total            5,719,268      5,719,268 5,739,691

BUREAU OF ASSET MANAGEMENT -38-

2131.0100-Contractual Services            24,000               24,000 15,980

2131.0300-Commodities            3,429,423      3,429,423      3,048,430

Total             3,453,423      3,453,423      3,064,410

TOTAL DEPARTMENT OF FLEET AND FACILITY MANAGEMENT            9,172,691            9,172,691 8,804,101

DEPARTMENT OF FINANCE - GENERAL - 99 -

2005.0000-Personal Services      

2005.0100-Contractual Services      

2005.0955-lnterest on Daily Tender Notes      

2005.9027-City's Contribution to Social Security Tax

2005.9076-City's Contribution to Medicare Tax      

12,940,298      12,940,298      11,153,905

117,041      117,041      98,587

2,488,000      2,488,000      655,958

20,586      20,586      20,586

873,105      873,105      873,105

90

Schedule 4 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Original Final Actual

Budget      Budget      

CHICAGO PUBLIC LIBRARY FUND ■ Concluded LIBRARY MAINTENANCE AND OPERATIONS - Concluded

GENERAL GOVERNMENT - Concluded

DEPARTMENT OF FINANCE - GENERAL - 99 - Concluded 2005.9112-Property Maintenance Contract for the Harold Washington Library Center: To Be Expended

Under the Direction of the Budget Director            $        7,078,186  $        7,078,186  $ 7,078,186

2005.9165-For Expenses Related to the Data Center            218,304      218,304      234,915

Total            23,735,520      23,735,520      20,115,242

TOTAL GENERAL GOVERNMENT            32,908,211      32,908,211 28,919,343

CHICAGO PUBLIC LIBRARY - 91 -

2005.0000-Personal Services            45,689,501      45,689,501      46,126,130

2005.0100-Contractual Services            2,654,192      2,654,192      2,398,608

2005.0200-Travel            3,700      3,700

2005.0300-Commodities            838,814      838,814      716,022

2005.9438-Department of General Services            162,582      162,582      162,687

Total            49,348,789      49,348,789      49,403,447

TOTAL LIBRARY MAINTENANCE

AND OPERATIONS            82,257,000      82,257,000      78,322,790

TOTAL CHICAGO PUBLIC LIBRARY FUND            87,541,000      87,541,000 82,876,464

SPECIAL EVENTS. TOURISM AND FESTIVALS FUND

MUNICIPAL HOTEL OPERATORS' OCCUPATION TAX

GENERAL GOVERNMENT

CITY COUNCIL COMMITTEE ON SPECIAL EVENTS AND CULTURAL AFFAIRS-15-

2155.0000-Personal Services      

2155.0100-Contractual Services      

2155.0300-Commodities      

2155.0700-Contingencies      

Total      

140,326 140,326 101,855

10,394 10,394 10,327

2,000 2,000 1,948

2,000      2000      38,280

154,720      154,720 152,410

91

Schedule 4 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Actual

Final Budget

Original Budget

SPECIAL EVENTS. TOURISM AND FESTIVALS FUND - Continued

MUNICIPAL HOTEL OPERATORS' OCCUPATION TAX - Concluded

GENERAL GOVERNMENT - Concluded

DEPARTMENT OF FINANCE - GENERAL - 99 -

2005.0000-Personal Services                                                  $      1,010,039  $        1,010,039  $ 961,797

2005.0100-Contractual Services            2,659,904           2,659,904 2,655,934

2005.0991-To Provide for Matching and Supplementary

Grant Funds            1,880,000            1,880,000 1,318,072

2005.9027-City's Contribution to Social Security Tax            2,066                2,066 2,066

2005.9076-City's Contribution to Medicare Tax            87,648               87,648 87,648

2005.9124-For the Sisters City Program             528,643      528,643      528,643

Total            6,168,300      6,168,300      5,554,160

TOTAL GENERAL GOVERNMENT            6,323,020      6,323,020      5,706,570

446,124

446,124

278,054

CULTURAL AND RECREATIONAL OFFICE OF THE MAYOR - 01 -

446,124

446,124

278,054

2005.0000-For Personal Services             

Total            

DEPARTMENT OF CULTURAL AFFAIRS - 23 -

2015.0000-Personal Services            6,023,456           6,023,456 5,608,523

2015.0100-Contractual Services            3,869,400           3,869,400 3,439,328

2015.0200-Travel            4,500                4,500 736

2015.0300-Commodities            47,000              47,000 43,984

2015.0900-For Specific Purposes-Financial            60,000              60,000 60,000

2015.9188-For Expenses Related to the Millennium Park            6,195,000           6,195,000 6,146,290

2005.9188-For Expenses Related to the Millennium Park            1,250,000            1,250,000            1,426,900

2005.9438-For Services Provided by the            250,000             250,000 250,000

2015.9400-For Specific Purpose-General            927,500             927,500 907,500

2015.9800-For Special Events Projects            10,603,000      10,603,000      10,490,304

Total            29,229,856      29,229,856      28,373,565

TOTAL CULTURAL AND RECREATIONAL            29,675,980      29,675,980      28,651,619

TOTAL MUNICIPAL HOTEL

OPERATORS'OCCUPATION TAX            35,999,000          35,999,000 34,358,189

92

Schedule 4 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Original Final Actual

Budget      Budget      

SPECIAL EVENTS, TOURISM AND FESTIVALS FUND - Concluded

DEPARTURE TAX

GENERAL GOVERNMENT

DEPARTMENT OF FINANCE - 27 -

2003.0100-Contractual Services            $      325,000 _$      325,000  $      325,000

Total            325,000      325,000 325,000

DEPARTMENT OF AVIATION - 85 -

2005.0000-Personal Services             924,276      924,276      924,276

Total            924,276      924,276 924,276

TOTAL GENERAL GOVERNMENT            1,249,276      1,249,276 1,249,276

PUBLIC SAFETY

DEPARTMENT OF BUSINESS AFFAIRS AND CONSUMER PROTECTION - 70 -

2005.0000-Personal Services             100,000      100,000      100,000

Total            100,000      100,000 100,000

TOTAL PUBLIC SAFETY            100,000      100,000 100,000

TOTAL DEPARTURE TAX            1,349,276      1,349,276 1,349,276

TOTAL SPECIAL EVENTS, TOURISM

AND FESTIVALS FUND            37,348,276      37,348,276 35,707,465

HEALTH AND WELFARE FUND

SMALL BUSINESS DEVELOPMENT LOAN FUND

GENERAL GOVERNMENT

DEPARTMENT OF FINANCE - GENERAL - 99 -

2005.9999-Miscellaneous             318,000      318,000

TOTAL GENERAL GOVERNMENT             318,000      318,000

TOTAL SMALL BUSINESS DEVELOPMENT LOAN FUND            318,000 318,000

93

Schedule 4 - Continued CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)

Year Ended December 31, 2012      

Original      Final Actual

Budget Budget

HEALTH AND WELFARE FUND ■ Concluded

NEIGHBORHOOD HUMAN INFRASTRUCTURE FUND

GENERAL GOVERNMENT

DEPARTMENT OF BUDGET & MANAGEMENT - 05 -

2005.9999-Miscellaneous            $        1,100,000  $        1,100,000  $ 600,000

DEPARTMENT OF FLEET AND FACILITY MANAGEMENT - 38 -

2005.9999-Miscellaneous            650,000      650,000 650,000

OFFICE OF PEOPLE WITH DISABILITIES - 48 -

2005.9999-Miscellaneous            400,000      400,000 400,000

DEPARTMENT OF FAMILY AND SUPPORT SERVICES - 50 -

2005.0100-Contractual            840,000      840,000 802,075

2005.9999-Miscellaneous            5,110,000      5,110,000 4,415,096

Total            5,950,000      5,950,000 5,217,171

DEPARTMENT OF HOUSING AND ECONOMIC DEVELOPMENT- 54 -

2005.9999-Miscellaneous            2,746,786      2,746,786 2,436,138

TOTAL GENERAL GOVERNMENT            10,846,786      10,846,786 9,303,309

TOTAL NEIGHBORHOOD HUMAN INFRASTRUCTURE FUND            10,846,786      10,846,786 9,303,309

TOTAL HEALTH AND WELFARE FUND            11,164,786      11,164,786 9,303,309

SPECIAL TAXING AREA

GENERAL GOVERNMENT

DEPARTMENT OF BUDGET & MANAGEMENT - 05 -

.0000-Personal Services            147,133 147,133

DEPARTMENT OF FINANCE - 27 -

.0000-Personal Services            279,115      279,115

DEPARTMENT OF THE CITY TREASURER - 28 -

.0000-Personal Services            85,020 85,020

94

Schedule 4 - Concluded CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS

SCHEDULE OF EXPENDITURES AND ENCUMBRANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) Year Ended December 31, 2012

Actual

Original Budget

Final Budget

SPECIAL TAXING AREA - Concluded

DEPARTMENT OF LAW-31 -

.0000-Personal Services            $        1,091,030  $        1,091,030 $

DEPARTMENT OF HOUSING & ECONOMIC DEVELOPMENT - 54 -

.0000-Personal Services            2,351,585      2,351,585 27,926

.9000-General            1,193,117      1,193,117      -      

Total            3,544,702      3,544,702      27,926

FINANCE GENERAL-99-

.0000-Personal Services            430,000 430,000

.9010-General            394,000      394,000      " -

.9626-General            1,007,000 1,007,000

.9629-General                  526,000      526,000      -_

Total                  2,357,000      2,357,000      -

TOTAL SPECIAL TAXING AREA                  7,504,000      7,504,000      27,926

TOTAL SPECIAL REVENUE FUNDS            $     951,301,242  $     951,301,242  $ 901,530,742

95

This Page Intentionally Left Blank

Schedule 5

CITY OF CHICAGO, ILLINOIS SPECIAL REVENUE FUNDS -MOTOR FUEL TAX FUND

STATEMENT OF CASH RECEIPTS AND EXPENDITURES Year Ended December 31, 2012

Cash Balance Receipts Expenditures Cash Balance

Dec. 31,2011      2012      2012      Dec. 31,2012

Allocated to Specific Projects: Bureau of Streets -

Arterial Streets                                         $      7,261,164   $     6,429,224   $    6,731,790   $ 6,958,598

Bureau of Streets -

Non-Arterial Streets            8,381,823         2,143,160         1,739,549 8,785,434

Bureau of Streets -

New Street Construction-Inactive            72,324                -                   - 72,324

Bureau of Street Operations -

Street Maintenance and Cleaning            (18,230,990)       20,350,550       12,068,095 (9,948,535)

Bureau of Electricity -

Street and Highway Lighting            16,719,074         3,548,874         4,474,847 15,793,101

Street Light Energy Cost            -          12,135,000 12,135,000

Bureau of Street Traffic -

Traffic Signal Controls            (10,602,818)           852,000         1,113,149 (10,863,967)

Bureau of Bridges -

Bridges, Viaducts and Superhighways            (1,517,668)        7,623,191         7,263,522 (1,157,999)

Department of Transportation -

CTA/RTA Authority Agreement            (12,000,000)        3,000,000         3,000,000 (12,000,000)

New Street Construction-Active            3,503,150                -                   - 3,503,150

Contingency            1,000,000      ;__      -      1,000,000

Subtotal            (5,413,942)       56,081,999       48,525,952 2,142,105

Unallocated Receipts and Distributions:

Unobligated Funds            (19,673,821)                -                    - (19,673,821)

Interest on Investments            1,269,072             36,587                 - 1,305,659

Miscellaneous Income            12,576,474      9,011,326      _:      21,587,800

Total            $    (11,242,217) $    65,129,912   $   48,525,952   $ 5,361,743

A reconciliation of Cash Receipts shown above and Actual Revenue follows:

Actual Revenue      

Revenue Receivable -

Balance December 31, 2012      

Balance December 31, 2011      

Miscellaneous Adjustments -

Balance December 31, 2012      

Balance December 31, 2011      

Receipts      

$ 65,093,131

$ 9,469,687

5,644,748 (3,824,939)

(26,912,030)

(23,050,310) 3,861,720

$ 65,129,912

97

Schedule 6

CITY OF CHICAGO, ILLINOIS

SPECIAL REVENUE FUNDS - FEDERAL, STATE AND LOCAL GRANTS COMBINING BALANCE SHEET December 31, 2012

With Comparative Totals for December 31, 2011 (Amounts are in Thousands of Dollars)

Aviation

Health

General Government

Public Safety

Transportation

ASSETS:

Cash and Cash Equivalents            $    10,200      $      (503)      $     (647)      $     (1,998)   $ 67

Investments            5,997      2,326      4,339      6,705 11

Restricted Assets - Cash and Cash Equivalents            -      -      2 -

Receivables (Net of Allowances)            1,336      62      8,381 88

Due from Other Funds            19,844      338      3,096 3,401

Due from Other Governments            902      14,931      34,667 219,508

Other Assets                  -       -            -            - -

Total Assets            $    38,279      $   17,154      $  49,836      $  227,706    $ 78

LIABILITIES AND FUND BALANCE Liabilities:

Voucher Warrants Payable            $      1,154      $   11,878      $   15,790      $    64,371    $ 1

Bonds, Notes and Other Obligations Payable - Current      ... .

Due to Other Funds            30,170      15,290      34,369 187,235

Accrued and Other Liabilities            2,479      311      1,879      318 4

Deferred Revenue            4,773      10,058      21,889        162,048      72_

Total Liabilities            38,576      37,537      73,927        413,972      77_

Fund Balance (Deficit):

Restricted 1

Unassigned            (297)      (20,383)      (24,091) (186,266)       

Total Fund Balance (Deficit)                  (297)      (20,383)      (24,091)      (186,266)       1_

Total Liabilities and Fund Balance            $    38,279      $   17,154      $  49,836      $  227,706    $ 78

98

      Totals      

Environmental   Cultural and        Human      Urban Capital

Control       Recreational      Services      Development       Outlay      2012      2011

361 2,318

74 5,319

555 831

1

756 1,503

8,900 25,661

3,215 577

2,185 83,917

5,059

(D $ 1,219 3

364

663 303

3,997 $ 3,298

1,241

20,931 52,705

3,220 10,809 29,694 362,651

5,362

75,382 3,220 20,215 21,786 276,051 7,210

8,072 $

2,551 $

485,372

$ 403,864

8,536 $

3,646    $     129,514 $

501      $          681      $      61,846 $

198      849 13,307

11      7 4,386

10,233      1,670 28,587

229 271

72 1,302

871 16 2,334

157,322 271 281,434 9,467 242,966

$ 181,965

106,558 26,558 210,467

10,943

3,207

108,126

1,874

3,221

525,548

691,460

439

21,388

677

5,315

(2,871)

(121,684)

27,820 (233,908)

(2,871)

439

21,388

677

(121,684)

5,315

(206,088)

8,072 $

3,646    $ 129,514

2,551 $

8,536 $

485,372      $ 403,864

99

Schedule 7

CITY OF CHICAGO, ILLINOIS

SPECIAL REVENUE FUNDS - FEDERAL, STATE AND LOCAL GRANTS

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE Year Ended December 31, 2012 With Comparative Totals for 2011

(Amounts are in Thousands of Dollars)      

General      Public Trans-

Government       Health      Safety        portation Aviation

Revenues:

Federal/State Grants            $       9,150      $  101,606    $   115,987      $   178,595 $

Total Revenues            9,150        101,606        115,987 178,595

Expenditures:

Current            10,533        101,558        112,429 325,491

Total Expenditures            10,533        101,558        112,429 325,491

Revenues Over Expenditures            (1,383)            48      3,558 (146,896)

Other Financing (Uses):

Operating Transfers Out                                                      

Total Other Financing (Uses)                  -            -            -            -

Revenues and Other Financing Sources

Over (Under) Expenditures and      (1,383)             48          3,558      (146,896)

Other Financing Uses            ...      .

Fund Balance (Deficit) - Beginning of Year            1,086        (20,431)        (27,649)      (39,370)       1_

Fund Balance (Deficit) - End of Year            $         (297)   $   (20,383)   $   (24,091)      $  (186,266)   $      1_

100

Environmental     Cultural and      Human      Urban      Capital       Totals      

Control      Recreational        Services      Development       Outlay      2012 2011

12,892 $

15,243    $    431,911 $

12,892

15,243

431,911

(209) $ 11,615 $ 876,790 $ 974,757

(209)      11,615      876,790 974,757

7,856      16,076      381,284      708      5,259      961,194 1,099,617

7,856      16,076      381,284      708      5,259      961,194 1,099,617

5,036      (833)      50,627      (917)      6,356      (84,404) (124,860)

(9,875) (9,875)

5,036      (833)      50,627      (917)      6,356      (84,404) (124,860)

(9,875)

(7,907)       1,272      (29,239)       1,594      (1,041)        (121,684) 13,050

$       (2,871)   $      439    $      21,388    $      677    $       5,315    $   (206,088)   $ (121,685)

101