Discussion for the Board to create standards.

7/26/09

Standards:

1.The State of Illinois Unemployment Statistic.2.The Unemployment Statistics for Cook, Lake, Kane and McHenry Counties

Relevance: These extraordinary unemployment statistics reinforce that taxpayers are financially stressed and can/will not vote to pay more. The optics of public sector wage or benefit increases, which do not reflect the economy, against the backdrop of people losing their income, and even their homes, would be viewed by the public as a disconnect from the realities they face.

Unemployment statistics also underline the difficulty that would face unemployed teachers if a district has to lay off teachers at a higher rate due to above-market compensation packages squeezing FTE layoffs.

3.a. Daily Herald Op/Ed and b. New Trier Contract

Relevance: The media and the public are carefully watching the leadership of School Districts for their actions in this environment. Future trust and support of the public is effected by our actions. New Trier’s (all hail the venerable New Trier, of course!) contract shows that other school districts had been suspending step at the same time Barrington was in the early ‘90s and characterize that as an indication of financial responsibility.

4. CPI Assumptions – CPI statistics (annual historical and last 12 months as well as an article regarding CPI in recessionary times.

Relevance: We must start with the facts. They speak for themself. This article provides historical data showing that inflation has been depressed after a recession, especially one with high unemployment. It also provides a prediction based on this historical data done prior to further bad news. This supports that the district’s CPI assumptions are based on current economic climate and supported by history. Further supporting the use of a conservative assumption is Standard & Poors write-up of District 220 and the key to receiving a AAA rating.

Standards:

5.“What it takes for school districts to make the AAA grade” by Standard & Poors

Relevance: Here is what Standard & Poors says about the best of the best’s financial management. When the BEA and others suggest we stray, this provides some expert observations about what good managers do.

6. “District 220” AAA Rating by Standard & Poors April 2008 for our “ Lake, Cook, Kane, & McHenry Counties Community Unit School District No. 220 (Barrington), Illinois; General Obligation” bonds

Relevance: S&P is a credit rating agency and assesses a district just like an individual in theory. Financialsituation that effects your ability to pay debt – income ( in our case that we’re a high income area dependent on property taxes – good, but economy and unemployment bad), behavior in spending (we HAD balanced budgets and developed surpluses), behavior in savings (we have policies to build and maintain our fund balance), and behavior in regards to debt (policies on the type of debt that we’ll issue and the presumption we’ll get permission from our community to extend debt, etc.).

The district is already moving from the path that achieved the AAA rating. Some examples not anticipated at the time S&P looked at us: Income will be depressed due to inflation, referenda to increase income is at best unlikely, especially given our recent spending actions; potential for increasing need for expenditures due to expansion of our program and wage pressure; issuing non-referenda debt; extending our policy of the length of our non-referenda debt; spending down our fund balance and an apparent reluctance to change our behavior given our new realities (my editorial).

7.State Financial Ratings Criteria and History

Relevance: The ratings criteria and history may be helpful to board members in understanding district in evaluating the potential effect on our ratings of options we may look to implement.

Standards:

8. Career Earnings Data (2008-2009)

Relevance: District 220 teachers are paid attractively measured against our reference districts.- Career earnings vs Reference Districts exceeded average by 3.8%- Only 1 other district is higher than District 220

9. Inflation versus District 220 Wages Data (Last 3 Contracts - 1998-2009)

Relevance: District 220 teachers compensation has exceeded Cost of Living- Cell inflation has met or exceeded CPI 1998 through 2009 by as much as 6%- Step plus cell plus lane increase has exceeded CPI 1998 through 2009 by approx. 300 to almost

400% based on sampling.

10 . Freezing step, while obviously not a popular practice with teachers, is not an unheard-of practice, nor something that was unique to District 220 in the periods referred to by “he who will not be named”.

Relevance: - District 220 cell freeze in earlier years and proposal today is in response to economic climate, and has precedence in other district at roughly the same time.- New Trier in 1993…refers to this as evidence of financial responsibility in conjunction with a stated goal to have well-paid teachers. These two items are not exclusionary and New Trier correctly judged that the community will recognize that.

Standards:

11.Data from the IRS regarding the wages of US Taxpayers

Relevance: There was some specific concern that the Board and Administration do not value District teachers. If compensation is a measure, District 220 compensation reflects status of teaching profession as:

- Single top teacher wage $100,000+ would retire in top x% of US wage earners- Two top teacher wages $200,000+ would retire in top x% of US Wage earners.

12.Data regarding the Health Insurance packages of our reference districts prepared by Tom Beerheide.

Relevance: District 220 health insurance benefits are a very large and unpredictable expense. This data shows that District 220’s health insurance benefits are above market.

13.Data regarding the District 220 Early Retirement Incentive (Johans info)

Relevance: District 220 retirement incentive uniquely subjects D220 to penalties, and reforming to our reference group would mitigate the negatives.

11.Data regarding the fund balances (averaged over the last 3 years to try to get rid of any single year events)

Relevance: District 220 fund balance lower than average of Reference District (Not Excessive)District 220 fund balance actually lower than stated due to ELC and BMS Station expenditures.

-

Standard:

1.The State of Illinois Unemployment Statistic.2. Unemployment by County

Relevance: Unemployment statistics illustrate that taxpayers are financially stressed and can not pay more. The optics of public sector increases not reflecting the economy against the backdrop of people losing their income, and even their homes would be viewed by the public as a disconnect from the realities they face.

Unemployment statistics also underline the difficulty that would face unemployed teachers if a district has to lay off teachers at a higher rate due to above market compensation packages.

Data Summary: Unemployment is at 10.3% in Illinois…

.

Unemployment rates by County (June 2009):

Source: Illinois Department of Employment Security, Economic

http://lmi.ides.state.il.us/rank.htm

Cook: 11.6% Lake: 8.7% Kane: 11.5% McHenry: 10.9%

Standards:

3. Daily Herald Op/EdRelevance: The media and the public are carefully watching the leadership of School Districts for their actions in this environment. Future trust and support of the public is effected by our actions.

Excerpts from the Daily Herald 7/24/09:

…We previously praised teachers, administrators and school board members in Northwest Suburban High School District 214 and Palatine-Schaumburg High School District 211 for taking the right approach with contracts that go without base raises next year, in light of the economy. Both provided raises for education and logevity.

However, consider other deals sealed around the suburbs this year:

-Geneva District 204 boosted pay .58 percent in a 3-year contract that also offers raises of about 3 percent a year for added education.

- Indian Prairie Unit District 204 OK’d annual base pay raises of 2 percent.

- Palatine District 15 approved a three-year deal with base salary raises of 1.9 percent.

- In Woodland District 50, administrators pay is frozen, but teachers get a base raise and bonuses for education and longevity.

We fear school districts still don’t get it. When taxpayers are taking pay cuts or losing jobs, even a 2% raise sounds out of line….

Other Districts have suspended step in the past as a financial responsibility when faced with economic need.

Per New Trier’s contract:

Standards:

4.CPI – a. Table with CPI actuals b. Article regarding CPI in

recessionary times.Relevance: Our work requires we project income based on inflation in the future. We must look at what inflation currently is. Inflation has run at a -1.4% rate over the last 12 months. We must also guess what it will be. This article provides historical data showing that inflation has been depressed after a recession, especially one with high unemployment. It also provides a prediction based on this historical data. I believe this supports that the district’s CPI assumptions are based on current economic climate and supported by history. Further supporting the use of a conservative assumption is Standard & Poors write-up of District 220 supporting the idea that AAA rated districts use longer term planning and projections with conservative assumptions.

  InflationYear Rate

1998 2.00%1999 2.70%2000 3.40%2001 1.60%2002 2.40%2003 1.90%2004 3.30%2005 3.40%2006 2.50%2007 4.10%2008 0.10%

CPI - Inflation

Source: US Bureau of Labor Statistics

Month Year Rate Cumulative 12 Month %July 2009 0.0% 98.09 -1.91June 2009 0.7% 98.09  May 2009 0.1% 97.41  April  2009 0.0% 97.31  Mar. 2009 -0.1% 97.31  Feb 2009 0.4% 97.41  Jan 2009 0.3% 97.02  Dec 2008 -0.8% 96.73  Nov 2008 -1.7% 97.51  Oct 2008 -0.8% 99.20  Sep. 2008 0.0% 100.00  Aug 2008 0.0% 100.00        100  

Besides current statistics,there is historical support for a moderate predictionunderlying the District’s Inflation assumptions.

Standards:

5.“What it takes for school districts to make the AAA grade” by Standard & PoorsRelevance: There are best practices in financial management. These sound philosophical principles and are enumerated and supported by Standard & Poors in this Article.

Strong management practices with a focus on multiyear planningWhile managements naturally focus on current-year operations, the 'AAA' districts typically plan over a three- to five-year horizon. Conservative budgeting is a common trait. Many districts have strong fiscal policies, providing guidelines for spending, debt, and finances. Reserve levels tend to be high, especially when compared to all school districts. Some school districts, such as the 10 Illinois 'AAA's, have successfully managed within a property tax cap levy. Other schools have coped with state limitations, as in New Jersey, on the amount of unreserved fund balances that they can hold.

From “What It Takes For School Districts To Make The 'AAA' Grade” Standard & Poors January 17, 2008

Manageable debt burden

The 'AAA' school districts tend to have manageable debt burdens and strong capital planning profiles. This is to be expected given their high wealth levels and generally large tax bases. Most of these school districts have well-developed multiyear capital plans that focus on future capital needs, measuring the effect of borrowing on future budgets. Funding sources, whether through pay-as-you-go financing, intergovernmental aid, or long-term borrowing, are also articulated. The multiyear capital plans are reviewed and modified annually. Funding usually consists of a combination of bond proceeds and pay-as-you-go financing. A comprehensive plan encompassing these characteristics is yet another characteristic of sophisticated management and is a sign of credit strength.

From “What It Takes For School Districts To Make The 'AAA' Grade” Standard & Poors January 17, 2008

Here’s an interesting fact:

Barrington net direct debt per capita is $5,204 and characterized as high (Barrington’s April 2008 S&P report).

“Overall debt per capita for the 26 'AAA' school districts ranges from $37 to $10,367. The districts with the highest debt per capita have populations much smaller than the median of 45,144. Average overall net debt per capita is $3,728 and the median is $3,302.” (January 2008 S&P report) Our population is less than the median (isn’t it around 37,000 to 40,000?)S&P tempers our high debt per capita with a high property value (they apparently assume we can raise taxes through referendum)…bad assumption.

Financial position is keyThe degree of financial control a district exerts correlates to a sound financial position. This quality is intrinsic The general fund balance provides one measure of financial flexibility. A strong and liquid fund, built up with surpluses during periods of growth and through careful budgeting, provides an ample cushion against the unanticipated. A sizable fund balance is also a resource the district can tap between payments of state aid or property taxes. We give credit when management's financial strategy includes a formal fund-balance policy or an internal, targeted level, and adheres to it. Highly rated school districts establish fund balances with the expectation that certain circumstances will prompt use of reserves while also containing a mechanism to replenish if drawn on.Almost every school district relies on a combination of property taxes and state aid. Districts reliant mostly on property taxes control their destinies to the extent that they have solid tax-base growth and thus an expanding, highly predictable revenue source. In highly rated school districts, property taxes account for the largest revenue source, with state aid playing a minor role. As a result, a reliance on stable tax revenues shields districts from fluctuations in state revenue, which tends to get cut during economic slowdowns. No district, however, is immune from fiscal pressures such as rising health care and other personnel-related costs, which in some cases outpace or have the potential to outpace revenue growth. Dealing with these costs requires good management, which 'AAA‘ school districts have demonstrated.

From “What It Takes For School Districts To Make The 'AAA' Grade” Standard & Poors January 17, 2008

This is why managing to conservative and being wrong on theplus side is important. When we get a string of negative news out of our controland we were counting on good news, we lose the ability to exert financial controland we’re in a bad place with no choice. Our hard fought fund balance policyand our debt policy are good practices per S&P.

A Review Of Key Ratios And Rankings

Standard & Poor's uses several ratios as part of the credit review process. Among them are a school district's overallnet debt per capita, per capita market value, and unreserved general fund balance as a percentage of expenditures(see glossary in table 3).

A high overall net debt ratio is an indication of a heavy debt burden, which each resident theoretically bears in equalmeasure. In some cases, we make distinctions between direct debt, for which the issuer itself is responsible, andoverlapping and underlying debt, which is not the issuer's direct obligation. If the issuer's direct debt is low, we maygive less weight to overlapping and underlying debt than if the issuer's own debt burden is high.

Overall debt per capita for the 26 'AAA' school districts ranges from $37 to $10,367. The districts with the highestdebt per capita have populations much smaller than the median of 45,144. Average overall net debt per capita is$3,728 and the median is $3,302.

Per capita market value measures property wealth. The average is $212,028, the median is $204,152, and thehighest is $474,639.

When examining a school district's financial position, we also review reserve levels, both in terms of policies andtrends. We look at the unreserved general fund balance as a percentage of operating expenditures to determine thesize of reserves in relation to the total budget. While we do not advocate an ideal reserve level, our report, “U.S. GORating Distributions And Summary Ratios: Year-End 2007,” published Jan. 2, 2008, sets ranges for cities, school districts, and counties based on population segments with descriptors that range from high to low. However, we consider each situation on its own merits. The 'AAA' school districts' ratio for unreserved general fund balance as a percentage of general fund operating expenditures varies. The average is 26.9%, and the median is 14.5%.

From “What It Takes For School Districts To Make The 'AAA' Grade” Standard & Poors January 17, 2008

Standards:

6.“District 220” AAA Rating by Standard & Poors April 2008.Relevance: Contains the things S&P saw when they rated us highly. Some of these things are changing...partly within our control, partly not.

S&P says in April of 2008:“Although the district is subject to a property tax levy cap equal to 5% or the rate of inflation (except with regard to new construction), financial performance has remained strong.

The district has reported general fund (combined education and operations and maintenance funds) surpluses at least since fiscal 2001. On fiscal year-end June 30, 2007, the general fund had a $6.0 million surplus resulting in an unreserved balance of $31.3 million (or, a very strong 32.7% of expenditures.

Financial projections indicate that the general fund balance should stay above a level representing 25% of expenditures through fiscal 2013. While the district does have a moderate to high debt burden, debt service represents a reasonable percentage of expenditures and all debt is retired by 2027. Overall net debt represents a high $5,204 per capita, but a low 2.6% of estimated market value. Debt service has typically represented less than 15% of operating expenditures. The district anticipates that it will issue additional debt for a middle school and early childhood project, but the extent of it will depend on passage of a referendum by voters.

Financial Reality: (Spending) Surpluses may be a thing of the past without action on expenditures if revenues (Income) continue to be depressed. (Savings) Fund balance is being depleted by our action and may be stressed by operation. (Borrowing) The district did NOT receive referendum approval for ELC and Station, and depleted our non-referendum debt capabilities as well as spent down our surplus to buy these items with the strong lobbying of BEA and parent interest groups.

“Financial Management Assessment: 'Strong‘

The district's management practices are considered "strong" under Standard & Poor's Financial Management Assessment (FMA). An FMA of strong indicates that the district's financial management practices are strong,well-embedded, and likely sustainable. Formal documents relating to capital and financial planning, debt management, and liquidity all help to support the district's strong FMA. In addition, consistent communication between the administration and elected officials regarding these items and budgetary and investment performance support the FMA.”

Strong, yes. Well-embedded, yes. Communication? Sustainable? Depends.

Financial Reality - Debt management practices and situation are changing: -Extended/depleted all non-referenda borrowing to pay for ELC and Station renovations and extended debt to 5 years.-Liquidity: Spent down fund balance by $7,208,367 million to pay for ELC and Station(not reflected in current numbers) and facing a possible surprise deficit in 2008-2009. Fund balance equivalent for 08-09 expenditures is not what we think it is when considering the fund balance already spent.

Lake, Cook, Kane, & McHenry Counties Community Unit School District No. 220 (Barrington), Illinois; General ObligationStandard & Poors April 4 2008

Standards:

7.State Financial Ratings Criteria and History

Relevance: The State Rating is a measure of our financial management. If we jeopardize our state ratings, we lose a key optics to our Community’s confidence in us (and aren’t following best practices). Here’s the test, and I’ve attached the full explanation and our last 5 years results.

Fund Balance to Revenue Ratio (has a weighting of 35%) Category 4 Greater or equal to 25% [lowest risk] Category 3 Less than 25% but greater or equal to 10% Category 2 Less than 10% but greater or equal to 0% Category 1 Less than 0% [highest risk] Expenditures to Revenue Ratio (EXRV) (has a weighting of 35%) Category 4 District is spending $1.00 or less for every dollar they are receiving [lowest risk] Category 3 District is spending more than $1.00 to $1.10 for every dollar they receive Category 2 District is spending more than $1.10 to $1.20 for every dollar they receive Category 1 District is spending more than $1.20 for every dollar they receive [highest risk] If the resulting calculation places a district in category 1 or 2, and the Fund Balance to Revenue Ratio (FBRR) is a category 4 then the following calculation is completed: • (FBRR - .1) divided by (EXRV – 1.0) • If the result is greater than 2, then the Expenditures Revenue score is assigned a 3 • If the result is greater than 1 but less than 2, then the Expenditure Revenue score is assigned a 2 Days Cash on Hand (has a weighting of 10%) Category 4 At least 180 days cash on hand [lowest risk] Category 3 Less than 180 days cash on hand to at least 90 days cash on hand Category 2 Less than 90 days cash on hand to at least 30 days cash on hand Category 1 Less than 30 days cash on hand [highest risk] Percentage of Short-Term Borrowing and Long-Term Borrowing Remaining (Short-term and Long-term borrowing each has a weighting of 10%) Category 4 Greater than or equal to 75% debt margin remaining [lowest risk] Category 3 Less than 75% but at least 50% debt margin remaining Category 2 Less than 50% but at least 25% debt margin remainingCategory 1 Less than 25% debt margin remaining [highest risk]

Standards:

8. Career Earnings Data (2008-2009)

Relevance: District 220 teachers are paid attractively measured against our reference districts.- Career earnings vs Reference Districts exceeded average by 3.8%- Only 1 other district is higher than District 220

Summary:

District 220 teacher’s salaries are above market.

- Career earnings vs Reference Districts exceeded average by 3.82%- Only one comparable district is higher, taking into consideration equalization for unit/high school/elementary school differences

Career Earnings Methodology:

1.Gathered all contracts of reference districts2.Assume 35 year career with the following progression

3.Placed salary on spreadsheet and totaled to get lifetime earnings.4.Graphed Result

22 – MA6023 – MA6024 – MA6025 – MA6026 – MA6027 – MA6028 – MA60

29 – MA6030 – MA6031 – MA6032 – MA6033 – MA6034 – MA6035 – MA60

1 - BA2 - BA 3 – BA124 – BA245 – BA246 – MA7 – MA

8 – MA9 – MA610 – MA1211 – MA1812 – MA2413 – MA3014 – MA 36

15 – MA4216 – MA4817 – MA5418 – MA6019 – MA6020 – MA6021 – MA60

Unit Barrington 220   1

2008-2009

Step BA MA MA+30 MA45

43457 1 43457 46499 47151 47802

44543 2 44543 47754 48565 49667

45701 3 45701 49091 50071 51619

46935 4 46935 50515 51673 5366348249 5 48249 52030 53378 5580453643 6 49649 53643 55193 5804755360 7 51138 55360 57125 6039857187 8 52723 57187 59181 6286259131 9 54411 59131 61371 6544661201 10 61201 63703 6815563404 11 63404 66187 7099865750 12 65750 68835 7397971657 13 68248 71657 7710974667 14 70910 74667 8039477877 15 73747 77877 8384387464 16 76770 81304 8746491269 17 79995 84963 9126995267 18 88871 9526799468 19 93048 99468

103884 20 103884108642 21 108642

108642 22108642 23108642 24108642 25108642 26108642 27108642 28108642 29108642 30108642 31108642 32108642 33108642 34108642 35

2975744Total

Career Earnings Methodology Applied:

  District Type District Name1 Unit Barrington 2202 Unit Lake Zurich 953 Unit Naperville 2034 Unit Dundee 3005 Unit Elmhurst 2056 Unit Wheaton-Warrenville 200     

7a High Highland Park/Deerfield 1137b Elementary Deerfield 1097c Elementary Northshore 112 7 Unit Equiv Highland Park/Deerfield 113     

8a High Stevenson 1258b Elementary Kildeer 96 8c Elementary Aptakisic-Tripp 1028 Unit Equiv Stevenson 125     

9a High Crystal Lake 1559b Elementary Cary 269c Elementary Crystal Lake 479 Unit Equiv Crystal Lake 155

10a High New Trier 20310b Elementary Winnetka 3610c Elementary Wilmette 3910 Unit Equiv New Trier 203     

11a High Palatine 21111b Elementary Palatine 1511c Elementary Schaumburg 5411 Unit Equiv Palatine 211     

12a High Arlington Heights 21412b Elementary Wheeling 2112c Elementary Elk Grove 5912 Unit Equiv Arlington Heights 214     

13a High Glenbrook 22513b Elementary Northbrook 2813c Elementary Glenview 3413 Unit Equiv Glenbrook 225

  District Type District Name

The Reference Group:

Career EarningsQuestion: What difficulties face us in determining competitiveness regarding Career Earnings?

Answer: Equalizing the structural differences in high school-only and elementary school-only districts when comparing salaries with unit districts. Unit districts have 1 schedule for both high school and other levels.

Question: How can we “equalize” and measure these divergent types of districts?

Answer: Convert high school and two feeder schools in each reference district to Unit districts by creating a career earnings model for each unit district (apples to apples), high school districts (apples and oranges), and elementary districts (apples and oranges). Then weight the non-unit districts to make a “UNITIZED” district out of the High School and feeder districts.

197.8 FTE29.17% of Total

480.136 FTE70.83% of Total

197.8 FTE29.17% of Total

240.068 FTE35.41% of Total

240.068 FTE35.41% of Total

    Lifetime Earnings                                                                         Lifetime Earnings  

    Educational Equivalent/Grid BA BA BA12 BA24 BA24 MA MA MA MA6 MA12 MA19 MA24 MA30 MA36 MA42 MA48 MA54 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 District Type Educational Equivalent/Grid  

  District Type District Name Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30 Year 31 Year 32 Year 33 Yea 34 Year 35 District Type District Name Total

1 Unit Barrington 220 43,457 44,543 45,701 46,935 48,249 53,643 55,360 57,187 59,131 61,201 63,404 65,750 71,657 74,667 77,877 87,464 91,269 95,267 99,468 103,884 108,642 108,642 108,642 108,642 108,642 108,642 108,642 108,642 108,642 108,642 108,642 108,642 108,642 108,642 108,642Unit Barrington 220 2,975,744

2 Unit Lake Zurich 95 39,848 41,442 43,300 44,931 49,271 50,999 54,589 55,316 58,062 60,862 62,700 67,522 70,048 72,541 77,180 77,926 82,232 83,829 85,425 87,022 88,619 90,216 91,812 93,409 95,006 96,602 98,199 99,796 101,393 102,989 104,586 106,183 107,779 109,376 109,376Unit Lake Zurich 95 2,760,386

3 Unit Naperville 203 41,969 42,691 44,886 47,404 48,487 55,445 57,128 58,807 60,486 64,326 66,009 69,068 70,869 76,031 80,110 81,911 83,951 88,089 90,128 92,168 95,291 98,409 103,214 103,214 103,214 103,214 103,214 103,214 103,214 103,214 103,214 103,214 103,214 103,214 103,214Unit Naperville 203 2,855,445

4 Unit Dundee 300 40,590 41,033 41,475 43,908 44,572 50,102 51,429 52,756 54,083 55,411 58,286 59,503 64,701 64,701 65,696 67,134 68,683 70,342 87,816 89,697 91,577 93,457 95,337 97,217 99,098 99,098 99,098 99,098 99,098 99,098 99,098 99,098 99,098 99,098 99,098Unit Dundee 300 2,639,584

5 Unit Elmhurst 205 43,432 44,409 45,408 47,823 48,899 58,406 60,158 61,962 63,821 67,436 69,459 73,346 79,228 81,763 88,582 91,682 94,891 98,212 98,745 98,745 98,745 98,745 98,745 98,745 98,745 98,745 98,745 98,745 98,745 98,745 98,745 98,745 98,745 98,745 98,745Unit Elmhurst 205 2,897,582

6 Unit Wheaton-Warrenville 200 40,315 41,222 44,257 47,515 48,584 55,858 57,366 58,915 60,506 62,140 67,008 68,817 74,209 76,213 78,271 84,403 86,682 93,474 95,997 99,028 99,208 99,208 99,208 99,208 99,208 99,208 99,208 99,208 99,208 99,208 99,208 99,208 99,208 99,208 99,208Unit Wheaton-Warrenville 200 2,828,900

                                                                                 

7a High Highland Park/Deerfield 113 47,270 48,853 49,891 54,880 56,374 64,858 68,151 70,995 73,838 76,832 83,018 85,912 91,450 94,393 97,287 104,371 107,266 113,102 115,497 118,381 119,153 119,153 119,153 119,153 119,153 119,153 119,153 119,153 119,153 119,153 119,153 119,153 119,153 119,153 119,153High Highland Park/Deerfield 113 3,409,914

7b Elementary Deerfield 109 36,686 38,062 40,871 43,888 45,534 49,014 50,852 52,759 54,737 60,209 64,967 67,566 70,269 73,080 76,003 79,043 82,205 85,493 89,910 94,689 94,698 94,698 94,698 94,698 94,698 94,698 94,698 94,698 94,698 94,698 94,698 94,698 94,698 94,698 94,698Elementary Deerfield 109 2,676,307

7c Elementary Northshore 112  39,507 40,691 43,378 46,189 47,573 52,429 54,000 55,619 57,288 61,073 65,032 66,983 68,992 76,035 81,058 86,313 88,902 91,579 94,316 97,146 100,061 103,062 103,062 103,062 103,062 103,062 103,062 103,062 103,062 103,062 103,062 103,062 103,062 103,062 103,062Elementary Northshore 112  2,857,032

7 Unit Equiv Highland Park/Deerfield 113 40,773 42,141 44,391 47,910 49,419 54,846 57,014 59,092 61,213 65,365 70,257 72,712 75,997 80,345 84,003 89,007 91,889 95,704 98,936 102,472 103,732 104,795 104,795 104,795 104,795 104,795 104,795 104,795 104,795 104,795 104,795 104,795 104,795 104,795 104,795Unit Equiv Highland Park/Deerfield 113 2,954,348

                                                                                 

8a High Stevenson 125 49,953 52,376 55,048 60,468 63,141 70,059 72,981 75,904 78,826 81,748 87,668 90,590 96,010 98,932 101,854 108,348 110,596 112,844 115,092 117,340 117,340 117,340 117,340 117,340 117,340 117,340 117,340 117,340 117,340 117,340 117,340 117,340 117,340 117,340 117,340High Stevenson 125 3,459,878

8b Elementary Kildeer 96  38,015 39,232 41,783 44,370 49,099 49,099 50,621 52,191 53,756 55,369 59,889 61,685 66,785 68,789 70,783 72,836 74,876 76,972 80,359 83,895 93,895 93,895 93,895 93,895 93,895 93,895 93,895 93,895 93,895 93,895 93,895 93,895 93,895 93,895 93,895Elementary Kildeer 96  2,595,476

8c Elementary Aptakisic-Tripp 102 36,872 38,059 39,285 43,177 44,623 50,606 52,504 54,473 56,516 58,635 61,972 64,246 67,315 69,751 72,277 74,894 77,605 80,414 83,325 86,341 87,352 88,375 89,410 90,457 91,516 92,588 93,672 94,769 95,879 95,879 95,879 95,879 95,879 95,879 95,879Elementary Aptakisic-Tripp 102 2,612,182

8 Unit Equiv Stevenson 125 41,093 42,652 44,769 48,644 51,611 55,748 57,812 59,918 62,048 64,222 68,732 71,025 75,500 77,924 80,378 83,926 86,264 88,657 91,543 94,519 98,419 98,781 99,147 99,518 99,893 100,273 100,657 101,045 101,438 101,438 101,438 101,438 101,438 101,438 101,438Unit Equiv Stevenson 125 2,853,597

                                                                                 

9a High Crystal Lake 155 41,934 44,240 46,547 51,159 53,466 59,127 61,433 63,740 66,046 68,352 72,965 75,272 79,884 82,191 84,497 89,110 91,416 96,029 100,353 102,682 102,682 102,682 102,682 102,682 102,682 102,682 102,682 102,682 102,682 102,682 102,682 102,682 102,682 102,682 102,682High Crystal Lake 155 2,970,673

9b Elementary Cary 26 37,561 38,763 41,163 43,712 45,111 49,294 50,871 52,500 54,179 57,535 59,376 63,053 66,957 69,100 71,311 75,727 78,151 80,651 85,646 88,628 88,628 88,628 88,628 88,628 88,628 88,628 88,628 88,628 88,628 88,628 88,628 88,628 88,628 88,628 88,628Elementary Cary 26 2,538,709

9c Elementary Crystal Lake 47                                                                       Elementary Crystal Lake 47  

9 Unit Equiv Crystal Lake 155 38,873 40,406 42,778 45,946 47,618 52,244 54,040 55,872 57,739 60,780 63,453 66,719 70,835 73,027 75,267 79,742 82,131 85,264 90,058 92,844 92,844 92,844 92,844 92,844 92,844 92,844 92,844 92,844 92,844 92,844 92,844 92,844 92,844 92,844 92,844Unit Equiv Crystal Lake 155 2,668,298

                                                                                 

10a High New Trier 203 47,589 49,969 52,348 57,107 59,486 66,149 68,909 71,669 74,429 77,190 79,950 82,710 89,943 92,799 95,654 98,510 101,365 104,220 111,263 114,166 114,166 114,166 114,166 114,166 114,166 114,166 114,166 114,166 114,166 114,166 114,166 114,166 114,166 114,166 114,166High New Trier 203 3,307,915

10b Elementary Winnetka 36 41,489 41,489 42,970 44,509 46,108 53,157 55,114 57,149 59,265 62,526 64,815 67,196 69,671 72,246 74,924 76,648 79,013 81,494 84,627 87,884 89,552 92,910 96,120 97,089 98,059 100,031 100,031 100,031 100,031 100,031 100,031 100,031 100,031 100,031 100,031Elementary Winnetka 36 2,736,334

10c Elementary Wilmette 39 41,183 42,644 44,551 46,454 47,910 53,574 55,506 57,438 59,369 62,443 64,517 67,567 69,560 72,643 74,835 79,087 82,214 86,709 89,918 93,127 93,127 93,127 93,127 93,127 93,127 93,127 93,127 93,127 93,127 93,127 93,127 93,127 93,127 93,127 93,127Elementary Wilmette 39 2,688,154

10 Unit Equiv New Trier 203 43,160 44,372 46,266 48,873 50,649 57,095 59,278 61,488 63,726 66,775 69,125 71,854 75,546 78,383 80,941 83,890 86,668 89,971 94,272 97,409 98,000 99,189 100,325 100,669 101,012 101,710 101,710 101,710 101,710 101,710 101,710 101,710 101,710 101,710 101,710Unit Equiv New Trier 203 2,886,042

                                                                                 

11a High Palatine 211 47,538 49,916 52,293 54,789 57,284 65,485 68,218 70,951 73,685 76,419 79,152 81,885 92,820 95,553 98,286 99,652 103,752 111,204 115,837 115,837 115,837 115,837 115,837 115,837 115,837 115,837 115,837 115,837 115,837 115,837 115,837 115,837 115,837 115,837 115,837High Palatine 211 3,348,111

11b Elementary Palatine 15 40,162 41,844 43,527 49,875 49,875 51,959 60,386 62,542 64,699 66,854 73,192 75,711 82,293 84,969 87,332 89,970 92,851 92,851 95,082 95,082 98,056 98,056 98,056 98,056 98,056 98,056 98,056 98,056 98,056 98,056 98,056 98,056 98,056 98,056 98,056Elementary Palatine 15 2,879,692

11c Elementary Schaumburg 54 37,889 39,784 41,678 45,468 47,361 51,529 53,803 55,697 57,971 59,865 65,170 68,200 74,642 77,673 81,083 84,114 87,525 87,525 90,555 90,555 92,450 92,450 94,345 94,345 96,238 96,238 96,238 96,238 96,238 96,238 96,238 96,238 96,238 96,238 96,238Elementary Schaumburg 54 2,730,295

11 Unit Equiv Palatine 211 41,509 43,470 45,430 49,748 51,146 55,753 60,340 62,572 64,938 67,170 72,090 74,853 82,655 85,473 88,315 90,721 94,146 96,320 99,535 99,535 101,259 101,259 101,930 101,930 102,600 102,600 102,600 102,600 102,600 102,600 102,600 102,600 102,600 102,600 102,600Unit Equiv Palatine 211 2,963,458

                                                                                 

12a High Arlington Heights 214 48,783 51,432 53,950 56,353 58,756 68,488 71,372 74,256 77,140 80,023 82,907 85,791 93,481 96,364 99,128 101,531 103,934 109,702 112,105 112,105 114,407 114,407 114,407 114,407 114,407 114,407 114,407 114,407 114,407 114,407 114,407 114,407 114,407 114,407 114,407High Arlington Heights 214 3,355,756

12b Elementary Wheeling 21 43,068 44,844 49,737 53,390 55,621 61,758 63,878 64,642 65,408 65,981 71,271 72,153 78,491 82,058 86,242 89,680 92,378 95,244 97,350 98,144 99,808 100,795 101,826 102,813 107,976 107,976 107,976 107,976 107,976 107,976 107,976 107,976 107,976 107,976 107,976Elementary Wheeling 21 3,024,316

12c Elementary Elk Grove 59 40,124 41,797 43,540 47,247 49,218 55,635 57,955 60,372 62,889 65,512 71,089 74,054 80,359 83,710 87,200 90,837 94,624 98,670 98,670 98,670 98,670 98,670 98,670 98,670 98,670 98,670 98,670 98,670 98,670 98,670 98,670 98,670 98,670 98,670 98,670Elementary Elk Grove 59 2,882,222

12 Unit Equiv Arlington Heights 214 43,693 45,687 48,772 52,079 54,268 61,553 63,967 65,935 67,939 69,912 74,602 76,805 83,526 86,817 90,341 93,547 96,545 100,675 102,122 102,403 103,665 104,014 104,379 104,729 106,557 106,557 106,557 106,557 106,557 106,557 106,557 106,557 106,557 106,557 106,557Unit Equiv Arlington Heights 214 3,070,702

                                                                                 

13a High Glenbrook 225 48,656 50,113 55,342 57,429 60,255 66,569 68,966 71,908 74,298 76,703 81,273 83,678 88,454 90,931 93,476 97,955 100,502 105,302 107,934 110,525 113,295 113,295 113,295 113,295 113,295 113,295 113,295 113,295 113,295 113,295 113,295 113,295 113,295 113,295 113,295High Glenbrook 225 3,289,694

13b Elementary Northbrook 28 40,983 43,007 44,168 45,827 46,265 53,543 54,937 56,637 58,599 62,513 64,907 67,622 69,620 71,637 74,104 76,804 78,585 79,189 81,824 85,123 85,677 86,230 87,775 89,253 89,727 90,199 91,834 93,918 96,146 97,974 97,974 97,974 97,974 97,974 97,974Elementary Northbrook 28 2,654,497

13c Elementary Glenview 34 36,727 37,181 37,687 38,160 38,601 55,722 58,090 61,328 64,745 68,353 72,161 74,771 77,476 79,025 80,605 82,217 83,861 85,539 87,249 88,994 90,773 92,589 92,589 92,589 92,589 92,589 92,589 92,589 92,589 92,589 92,589 92,589 92,589 92,589 92,589Elementary Glenview 34 2,695,511

13 Unit Equiv Glenbrook 225 41,715 43,017 45,133 46,497 47,633 58,115 60,147 62,754 65,356 68,721 72,251 74,838 77,897 79,883 82,058 84,892 86,848 89,057 91,363 93,905 95,540 96,379 96,926 97,449 97,617 97,784 98,363 99,101 99,890 100,537 100,537 100,537 100,537 100,537 100,537Unit Equiv Glenbrook 225 2,854,351

  District Type District Name Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30 Year 31 Year 32 Year 33 Yea 34 Year 35 District Type District Name  

    Educational Equivalent/Grid BA BA BA12 BA24 BA24 MA MA MA MA6 MA12 MA19 MA24 MA30 MA36 MA42 MA48 MA54 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 MA60 District Type Educational Equivalent/Grid  

It’s a big spreadsheet:

District Name TotalBarrington 220 2,975,744Lake Zurich 95 2,760,386Naperville 203 2,855,445Dundee 300 2,639,584Elmhurst 205 2,897,582Wheaton-Warrenville 200 2,828,900

Highland Park/Deerfield 113 3,409,914Deerfield 109 2,676,307Northshore 112  2,857,032Highland Park/Deerfield 113 2,954,348

Stevenson 125 3,459,878Kildeer 96  2,595,476Aptakisic-Tripp 102 2,612,182Stevenson 125 2,853,597

Crystal Lake 155 2,970,673Cary 26 2,538,709Crystal Lake 47  Crystal Lake 155 2,668,298

New Trier 203 3,307,915Winnetka 36 2,736,334Wilmette 39 2,688,154New Trier 203 2,886,042

Palatine 211 3,348,111Palatine 15 2,879,692Schaumburg 54 2,730,295Palatine 211 2,963,458

Arlington Heights 214 3,355,756Wheeling 21 3,024,316Elk Grove 59 2,882,222Arlington Heights 214 3,070,702

Glenbrook 225 3,289,694Northbrook 28 2,654,497Glenview 34 2,695,511Glenbrook 225 2,854,351

Average is 3.82% Less than Barrington

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Whe

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War

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Steve

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125

Gle

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Naper

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203

New T

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Elmhu

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Highl

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Palat

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214

Career Earnings – Districts “Unitized”

Barrin

gton

220

Career Earnings - Unit District Reference Group

2,400,000

2,500,000

2,600,000

2,700,000

2,800,000

2,900,000

3,000,000

3,100,000

Barri

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Elmhu

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5

Nape

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 203

Whe

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200

Lake

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Standards:

9. Inflation versus District 220 Wages Data (Last 3 Contracts - 1998-2009)

Relevance: District 220 teachers salary grid has exceeded Cost of Living- Cell inflation has kept pace or exceeded CPI 1998 through 2009 by as much as 6%- Step plus cell plus lane increase has exceeded CPI 1998 through 2009 by almost 300 to 400%

Additional step added in 1999.

  1998 2009 IncreaseBA-1 $33,000 $43,457 32%MA-1 $35,500 $46,499 31%MA+30-1 $35,600 $47,151 32%MA+45 -1 $36,300 $47,802 32%MA+45 - Last $79,400 $108,642 37%

Grid inflation kept pace with cost of living andoutpaced cost of living in some cases by as much as 6%.

  Inflation   CumulativeYear Rate Calculation Inflation

1998 2.00% 102.0000 2.00%1999 2.70% 104.7540 4.75%2000 3.40% 108.3156 8.32%2001 1.60% 110.0487 10.05%2002 2.40% 112.6899 12.69%2003 1.90% 114.8310 14.83%2004 3.30% 118.6204 18.62%2005 3.40% 122.6535 22.65%2006 2.50% 125.7198 25.72%2007 4.10% 130.8743 30.87%2008 0.10% 131.0052 31.01%

Additional step added in 1999. Longevity bonusIs $1150 in addition to step 20-25.

Examples, Teachers Progressing Through Grids (1998 - 1999 through 2008-2009)

                  Teacher 3

Lane Step Year Teacher 1 Year Teacher 2 Year  Teacher 3 Longevity W/Long'ty

BA 1 1998-1999 33000            

BA 2 1999-2000 34040            

BA 3 2000-2001              

BA 4 2001-2002              

BA 5 2002-2003   1998-1999 37100        

MA 6 2003-2004 46927 1999-2000 43530        

MA 7 2004-2005 49923 2000-2001          

MA 8 2005-2006 53251 2001-2002          

MA 9 2006-2007 55299 2002-2003          

MA 10 2007-2008 58286 2003-2004 55207        

MA 11 2008-2009 63404 2004-2005 58360 1998-1999 52600   52600

MA 12     2005-2006 63582 1999-2000 55040   55040

MA30 13     2006-2007 66145 2000-2001      

MA30 14     2007-2008 71111 2001-2002      

MA30 15     2008-2009 77877 2002-2003      

MA45 16         2003-2004 74313   74313

MA45 17         2004-2005 78746   78746

MA45 18         2005-2006 83813   83813

MA45 19         2006-2007 91088   91088

MA45 20         2007-2008 98938   98938

MA45 21         2008-2009 108642 1150 109792

MA45 21                

MA45 21                

Percentage Increase: 92%   110%       109%

Teacher pay outpaced cost of livingby between approximately 3 times to almost 4 times the cost of living.

1998 2008 IncreaseBA - 1 $33,000 MA- 11 $63,404 92%BA - 5 $37,100 MA45 -16 $77,877 110%MA30 - 13 $52,600 MA45 - 21 $109,792 109%

  Inflation   CumulativeYear Rate Calculation Inflation

1998 2.00% 102.0000 2.00%1999 2.70% 104.7540 4.75%2000 3.40% 108.3156 8.32%2001 1.60% 110.0487 10.05%2002 2.40% 112.6899 12.69%2003 1.90% 114.8310 14.83%2004 3.30% 118.6204 18.62%2005 3.40% 122.6535 22.65%2006 2.50% 125.7198 25.72%2007 4.10% 130.8743 30.87%2008 0.10% 131.0052 31.01%

Fund Balance Basics

•Fund Balance is cash on hand .•Fund Balance is stated as a ratio of cash on hand measured against annual revenue.•A budget surplus increases fund balance•A budget deficit decreases fund balance.• Because a district budget gets bigger every year, it is necessary to have a certain level of surplus to have the fund balance stay the same. A budget without surplus will see a decreasing fund balance.•Districts need a level of fund balance to be able to pay expenses while waiting for uneven revenue.• The state weighs fund balance in evaluating whether a district is financially healthy, a key optic to the community.• Rating agencies weigh fund balance in evaluating whether a district is financially healthy and a good credit risk. These credit ratings are a key factor in the expense a district pays to borrow money. The higher the rating, the lower the cost of borrowing for capital projects.

0.00%20.00%40.00%60.00%80.00%

100.00%120.00%140.00%

Elk Gro

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9

Nor

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28

Kild

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6

Apta

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Trip

 102

Win

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a 36

Scha

umbu

rg 5

4

Crys

tal L

ake 

155

Crys

tal L

ake 

Com

mun

ity C

onso

l 47

Gle

nvie

w 2

25

New

 Trier

 203

Gle

nvie

w 3

4

Pala

tine 

211

Stev

enso

n 12

5

Wilm

ette 

39

Nap

ervi

lle 2

03

Arlin

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 Hei

ghts

 214

Hig

hlan

d Pa

rk/D

eerfi

eld 

113

Nor

th S

hore

 112

Barr

ingt

on 2

20

Pala

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15

Elm

hurs

t 205

Dee

rfiel

d 10

9

Dun

dee 

300

Whe

elin

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Lake

 Zur

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95

Whe

aton

-War

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200

Cary

 Com

mun

ity C

onso

l 26

% of Fund Balance to Revenue Ratio (Ave. Last 3 Years State Report Cards)

Average = 49.40%Barrington Currently = 34.38%Barrington – Station and ELC Spend = ? ($7,208,367)

120.42%

46.30%

29.66%

11.50%

117.31%

49.70%

33.59%

2.30%

124.30%

52.40%

36.30%

-4.40%

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

2005-06 2006-07 2007-08

High

Average

Barrington 220

Low

Barrington CUSD 220Operating Surplus 2006-2009

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

2005- 06 2006- 07 2007- 08 2008- 09*

* Unaudited financial results

13.63%

3.70%

7.02%

-10.75%

12.44%

4.70%5.07%

-10.65%

11.10%

4.50%4.00%

-12.00%

-15.00%

-10.00%

-5.00%

0.00%

5.00%

10.00%

15.00%

2005-06 2006-07 2007-08

High

Average

Barrington 220

Low

Median Salary Increase FY08 & FY09Comparison of Teachers v. Administation

7.2%

8.7%

5.7%

4.3%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

FY 08 FY 09

Teachers Admin

Total Compensation Increase FY08 & FY09

8.7%

9.9%

6.2%5.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

FY 08 FY 09

Teachers Admin

BENEFITS In Network Out of Network In Network Out of Network In Network Out of NetworkDeductible

Individual $439 $689 $533 $423Family $1,018 $1,564 $1,063 $852

Out-of-PocketIndividual 1,100$ 2,200$ $1,315 $2,819 $1,342 $2,017Family 2,200$ 4,400$ $2,824 $6,330 $2,720 $4,308

Coinsurance 90% 70% 87% 71%Prescription Drugs

Retail (30-Day Supply)

Mail Order (90-Day Supply)

Standard Dev. (Including CUSD 220)Average (Not including CUSD 220)

$10 Generic $10 Brand w/ no generic equivalent

$25 Brand$10 Generic

$10 Brand w/ no generic equivalent $25 Brand

Barrington's PPO PLAN2

$350$700

Career Earnings - Unit District Reference Group

2,400,000

2,500,000

2,600,000

2,700,000

2,800,000

2,900,000

3,000,000

3,100,000

Barri

ngto

n 220

Elmhu

rst 20

5

Nape

rville

 203

Whe

aton-W

arren

ville 

200

Lake

 Zuric

h 95

Dund

ee 30

0

``

Career Earnings - High School Reference Group

2,700,000

2,800,000

2,900,000

3,000,000

3,100,000

3,200,000

3,300,000

3,400,000

3,500,000

Barring

ton 220

HP/Dee

rfield

113

Steven

son 1

25

Crysta

l Lak

e 155

New T

rier 2

03

Palatin

e 211

Arling

ton H

eights

214

Glenbro

ok 22

5

Career Earnings - Elementary District Reference Group

2,200,000

2,300,000

2,400,000

2,500,000

2,600,000

2,700,000

2,800,000

2,900,000

3,000,000

3,100,000

Barring

ton 220

Deerfi

eld 109

Northsh

ore 1

12

Kildee

r 96

Aptakisi

c-Trip

p 102

Cary 26

Winn

etka 3

6

Wilm

ette 3

9

Palatin

e 15

Schau

mburg

54

Whee

ling 21

Elk Gro

ve 59

Northbro

ok 28

Glenview

34

Average is 3.82% Less than Barrington

Dunde

e 30

0

Lake

Zur

ich 9

5Cry

stal

Lak

e 15

5

Whe

aton

War

renv

ille 2

00

Steve

nson

125

Gle

nbro

ok 2

25

Naper

ville

203

New T

rier 2

03

Elmhu

rst 2

05

Highl

and

Pk/Dee

rfiel

d 11

3

Palat

ine

211Arli

ngto

n Hei

ghts

214

Career Earnings – Districts “Unitized”

Barrin

gton

220

Insurance Plan Costs Insurance Plan Costs Compared to Referent Compared to Referent Districts AverageDistricts Average

BENEFITS In Network Out of Network In Network Out of NetworkDeductible

Individual $435 $673Family $1,003 $1,523

Out-of-PocketIndividual 1,100$ 2,200$ $1,301 $2,780Family 2,200$ 4,400$ $2,785 $6,214

Coinsurance 90% 70% 87% 71%Prescription Drugs

Retail (30-Day Supply)

Mail Order (90-Day Supply)

Average (Not including CUSD 220)

$10 Generic $20 Brand w/ no generic equivalent

$35 Brand$20 Generic

$40 Brand w/ no generic equivalent $50 Brand

$10 Generic $10 Brand w/ no generic equivalent

$25 Brand$10 Generic

$10 Brand w/ no generic equivalent $25 Brand

Barrington's PPO PLAN2

$350$700

Recent Settlements

2007-08CONTRACT SETTLEMENT AVERAGE OPERATING FUND 2007-08 % OF FUND

DISTRICT LENGTH SETTLEMENT (“ALL IN”) DATE STEP BALANCE REVENUES BALANCE

15 3 Years 2.77% Year 1, 2.66% Year 2, 2.54% Year 3

6/0943,152,049$ 120,732,569$ 35.7%

36 1 Year 4% 5/09 23,409,530$ 31,327,886$ 74.7%211 5 Years Step only Year 1; Step+CPI (not to exceed

3.75%) thereafter5/09

119,869,015$ 209,701,211$ 57.2%214 5 Years Step only Year 1; Step+CPI (not to exceed

3.75%) thereafter5/09 2.5%

80,781,881$ 199,191,407$ 40.6%