CAFR Analysis Amanda Grieco December 2, 2013

 Incorporated in 1857  Located in the northeastern part of the state  Top growth area in the state  One of the top growth areas in the country.  Unemployment rate was 7.1%  6,000 building permits were issued.  Population: 143,289  Per capita personal income: $45,012  Median age: 39.2  Education level:  School enrollment : 46,790.

COMPOSITION OF NAPERVILLE, IL. DEBT SERVICE FUND (Q: EXPENSES) ELECTRIC UTILITY FUND (Q: ALL) WATER & WASTE FUND (Q: ALL) 10%ASSETS$8,598, % $98,826,000 $286,809, % $553,877,000 $254,028, % $553,877,000 10%LIABILITIES $58,760, % $94,086,000 $35,308, % $94,086,000 10%REVENUES$11,743, % $135,473,000 $134,580, % $184,289,000 $47,578, % $184,289,000 10%EXPENSES$15,333, % $138,767,000 $127,814, % $163,739,000 $34,147, % $163,739,000 5%ASSETS$8,598, % $652,703,000 $286,809, % $652,703,000 $254,028, % $652,703,000 5%LIABILITIES $58,760, % $113,806,000 $35,308, % $113,806,000 5%REVENUES$11,743, % $319,762,000 $134,580, % $319,762,000 $47,578, % $319,762,000 5%EXPENSES$15,333, % $302,506,000 $127,814, % $302,506,000 $34,147, % $302,506,000 Audited by Sikich Unqualified opinion Certificate of Achievement for Excellence in Financial Reporting The primary government uses 21 individual funds. One General Fund 20 Other funds Major funds Debt Service Fund Electric Utility Fund, Water and Wastewater Utility Fund Internal Service Fund Pension Trust Fund. MAJOR FUND QUALIFICATION COMPUTATIONS

Assets exceeded liabilities by $928 million (net position) $69 million unrestricted to use as needed. Total Net Position decreased by $4.8 million: Governmental -$6.1 million Business-type: +$1.3 million. Governmental fund balances totaled $47.5 million $31.5 million (69%) is unassigned $13 million above the 20% policy reserve level. Total debt decreased by $10.4 million (5.77%). Issued $30 million General Obligation bonds to refund the outstanding bonds.

COMPARISONS Revenues & Expenses Budgeted & Actual Activity Governmental Activities Business-type Activities Total Primary Government Revenues Expenses =/- Net position (6)(9)1-(5)(9)

NET DEBT PER CAPITA General Obligation Debt – Debt Service Fund Balance Population 164,580, ,717, ,289 $1, NET DEBT TO FAIR VALUE OF PROPERTY General Obligation Debt – Debt Service Fund Balance Market Value Of Property 164,580, ,717,628 6,072,976, % UNASSIGNED FUND BALANCE REVENUES General Fund Unassigned Fund Balance General Fund Total Balance 25,573, ,058, % GOVERNMENTAL REVENUES PER CAPITA Total Revenue: Governmental Funds Population 135,473, ,289 $ INTEREST COVERAGE – REVENUE BONDS Operating Income: Enterprise Funds Interest Expense (5,644,000) 2,251, OPERATING RATIO- ENTERPRISE FUNDS Operating Expense – Depreciation Expense Operating Revenues 163,739,000 – 184,289,000 (5,644,000) 553%

 All revenues showed improvement trends  higher than budget collection for FY2013, 5% increase ($5,000,000).  The Retail Sales Tax increased by 7%, or $32.3 million  40% increase in home sales  Reduced property tax levy by 4.31%  Property tax collection in 2011 was $48,317,459, 99.2% collected.  The City of Naperville is considered unstable due to the fact that it relies on the tax revenues as the sole source of income:  $109,884,000, or 81%, of revenues totaled  Also can be considered stable because it was able to collect a high percentage of its taxes.

 Reduced gross healthcare costs by 2%!  The decline in revenues ($1 million) is due to reduction in property taxes.  Offset the reduction: increase in home sales and sales taxes  The city invested $851 million in capital assets in FY2103.  Total expenditures of governmental activities ($331 million)  64.3% general revenues  34.2% program revenues.  20.3% increase of general government expenditures  Reduced by lowering charges  Now purchasing wholesale power from IMEA,  resulting in lower costs, which is more favorable than most markets.  Capital projects  Smart Grid Initiative  Library Roof Replacement.

 $ million outstanding debt  Un-funded public safety pension liability $99.6 million.  $6 million of increased revenues above budget was split to increase pension contribution to each of the two public safety pension funds.  The compound interest on the accelerated payment is expected to save the city at least $16 million over the next 20 years.

 STANDARD & POOR – AAA BOND RATING  DEBT ELIMINATION EFFORTS  IMPROVING ECONOMY, INCREASED REVENUES  CAPITAL IMPROVEMENTS  DOES NOT RELY ON INTERGOVERNMENTAL REVENUES  HIGH LIQUIDITY RATIO  ABLE TO SIGNIFICANTLY REDUCE EXPENDITURES  “BUY” CONCLUSION