COMPREHENSIVE ANNUAL FINANCIAL REPORT NEW TRIER …gfoa.net/cafr/COA2012/NewTrierTownshipHighSchoolDistrict203IL.pdf · Illinois. The class of 2012 included a Presidential Scholar

COMPREHENSIVE ANNUAL FINANCIAL REPORT

Of

NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203

Cook County, Illinois

for the fiscal year ended June 30, 2012

Official Issuing Report

Donald R. Goers Associate Superintendent

Department Issuing Report

Business Office

Contents

INTRODUCTORY SECTION Transmittal Letter i – xiiASBO Certificate of Excellence in Financial Reporting xiiiGFOA Certificate of Excellence in Financial Reporting xivOrganizational Chart xvList of Principal Officials xvi

FINANCIAL SECTION Independent Auditor's Report 1 - 2 Required Supplementary Information

Management’s Discussion and Analysis (MD&A) 3 - 15

Basic Financial Statements Government-wide Financial Statements (GWFS)

Statement of Net Assets 16 - 17Statement of Activities 18

Fund Financial Statements (FFS)

Governmental Funds: Balance Sheet – Governmental Funds 19Reconciliation of the Governmental Funds Balance Sheet

to the Statement of Net Assets 20Statement of Revenues, Expenditures and Changes in Fund Balances -

Governmental Funds 21Reconciliation of the Governmental Funds Statement of Revenues,

Expenditures and Changes in Fund Balances to the Statement of Activities 22

Fiduciary Funds: Statement of Fiduciary Assets and Liabilities – Agency Funds 23

Notes to Basic Financial Statements 24 – 43

Required Supplementary Information

Schedule of Funding Progress – Illinois Municipal Retirement Fund 44Schedule of Funding Progress – Post Employment Healthcare Plan 45Schedule of Revenues, Expenditures and Changes in Fund Balance –

Budget and Actual – General Fund – Budgetary Basis 46Note to Required Supplementary Information 47

Supplementary Information

Combining Major Governmental Funds: Combining Balance Sheet – General Fund, by Accounts 48 Combining Statement of Revenues, Expenditures and Changes in Fund Balance-

General Fund, by Accounts 49 Combining Schedule of Revenues, Expenditures and Changes in Fund Balance -

Budget and Actual – Budgetary Basis – General Fund, by Accounts 50 - 51

Contents

FINANCIAL SECTION (continued)

Supplementary Information (continued)

Combining Nonmajor Governmental Funds 52Combining Balance Sheet 53 – 54 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 55 – 56 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual:

Transportation Fund 57Municipal Retirement/Social Security Fund 58Debt Service Fund 59Capital Projects Fund 60Fire Prevention and Life Safety Fund 61

Statement of Changes in Assets and Liabilities – Agency Funds 62

Schedule of Debt Service Requirements 63 – 65

STATISTICAL SECTION 66 Net Assets by Component – Last Ten Fiscal Years 67Expenses, Program Revenues, and Net (Expense) Revenue – Last Ten Fiscal Years 68 – 69General Revenues and Total Change in Net Assets – Last Ten Fiscal Years 70Fund Balances, Governmental Funds – Last Ten Fiscal Years 71Governmental Funds Revenues – Last Ten Fiscal Years 72Governmental Funds Expenditures and Debt Service Ratio – Last Ten Fiscal Years 73 – 74Other Financing Sources and Uses and Net Changes in Fund Balances – Last Ten Fiscal Years 75Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal Years 76Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years 77Principal Property Tax Payers – Current Year and Nine Years Ago 78Property Tax Levies and Collections – Last Ten Fiscal Years 79Outstanding Debt by Type – Last Ten Fiscal Years 80Computation of Direct and Overlapping Governmental Activities Debt 81Legal Debt Margin Information – Last Ten Fiscal Years 82Demographic and Economic Statistics – Last Ten Calendar Years 83Principal Employers – Current Year and Nine Years Ago 84Full-Time Equivalent District Employees by Type – Last Ten Fiscal Years 85Operating Statistics – Last Ten Fiscal Years 86Capital Asset Information – Last Ten Fiscal Years 87

Introductory Section

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November 30, 2012 President, Members of the Board of Education, and Citizens of New Trier Township New Trier Township High School District 203 Northfield, Illinois 60093 The Comprehensive Annual Financial Report of New Trier Township High School District 203, Cook County, Illinois, as of and for the year ended June 30, 2012, is submitted herewith. The annual audit was completed on November 30, 2012, and a report was subsequently issued. Responsibility for the accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures, rests with the District. We believe the data as presented are accurate in all material aspects, and are reported in a manner designed to fairly set forth the financial position and results of operations of the District as shown by the disclosure of all financial activity of its various funds. All disclosures necessary for the reader to gain an understanding of the District’s financial status have been incorporated in the report. Additional discussion and analysis of the financial performance of New Trier Township High School are included in the Management’s Discussion and Analysis. This section begins on page 3. History On April 4, 1899, the voters of New Trier Township approved the establishment of a high school district by a vote of 651 to 369. The total township population at that time was approximately 5,000 persons. The Board held its first meeting on May 19, 1899, in the Winnetka home of Merritt Star. For the next 20 months, the Board focused on building a school and hiring a staff. New Trier High School opened its doors on February 1, 1901, to 76 students under the direction of Frank L. Smart, the school’s first principal. The first two graduates of New Trier received their diplomas in June 1901, having begun their instruction at Evanston Township High School. The school grew quickly over the next decade. In September 1911, the school enrolled over 450 students. The physical plant grew as well with additions to the original building in 1907 and 1912. The 1912 addition included what was the first full-sized indoor swimming pool in an American high school. Further additions or major renovations to the Winnetka facility were completed in 1923, 1928, 1931, 1934, 1950, 1957 and 1973. Additional land was purchased in 1912 and 1921 to increase the Winnetka Campus acreage to its present 27 acres. Duke Childs Field was purchased in 1978 after completion of a long-term lease to provide additional athletic fields. In 2001, in a joint effort with the Northfield Park District, nearly 10 acres of land were purchased in Northfield at the corner of Waukegan and Willow Roads for the development of additional athletic fields. The New Trier High School student advisement system was instituted in 1917 and obtained its present nationally recognized form in 1923. This unique guidance program provides a small school atmosphere within a large school by dividing the student population into single-gender adviser rooms of approximately 25 students each. For the first 25 minutes of every school day, students meet in their “adviser rooms” with their faculty adviser, who serves as academic and guidance counselor as well as a vital link to each advisee’s parents and teachers.

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In the 1930s, New Trier, along with Evanston Township High School, participated in the landmark Eight-year Study by the Carnegie Foundation and the General Education Board, to determine the best methods of preparing students for college. New Trier also continued to grow, reaching an enrollment of 2,188 in 1933. World War II caused New Trier’s enrollment to dip as its boys went off to war. A total of 126 of those young men never returned, just as 20 New Trier students had perished in World War I. The students remaining at New Trier conducted war bond drives to purchase a military ambulance, a B-17 and a B-29 bomber. Years later, as a memorial to those who served in the armed forces, New Trier Township paid for the renovation of the school’s library as part of a larger renovation project at the Winnetka Campus in 1957. The baby boom and suburban migration of the late 1940s and 1950s caused New Trier’s enrollment to skyrocket. Eventually, this growth caused New Trier to build a second school, New Trier West High School, located in Northfield. New Trier West opened in the fall of 1965, although construction had not yet been completed. District enrollment peaked at 6,554 during the 1972-73 school year. A precipitous decline in enrollment caused New Trier West to be closed as a four-year school in the spring of 1981. West remained a freshman center until 1985. New Trier’s enrollment dipped to a low of 2,710 in 1990-91 but increased again by over 54% by 2007-08. To accommodate the growing student population, the District returned to a two-campus model in the 2001-02 school year, with the former New Trier West re-opening as the Northfield Campus for freshmen and the Winnetka Campus housing sophomores, juniors and seniors. Throughout New Trier’s history, its alumni have excelled in virtually every career field and have given back through acts of service to their countries, their communities, and the world. In 2011, New Trier established the Alumni Achievement Awards to recognize the accomplishments of its graduates and named 10 inaugural members to the Alumni Hall of Honor. Another 10 alumni were inducted into the Hall in 2012. Over the past two years, 17 of the 20 honorees have returned to New Trier to share their stories with students and to accept their awards at a dinner sponsored by the New Trier Educational Foundation. In 2012, New Trier dedicated a Hall of Honor at the Winnetka Campus featuring plaques of all the honorees and an interactive display outlining their accomplishments. Honorees have included philanthropists, two U.S. Ambassadors, a Nobel Prize-winning physicist, award-winning actors, cancer researchers, a Tuskegee Airman, and the Mayor of Chicago. New Trier continues to welcome back alumni for special events including reunions, tours, classroom visits and special programs for students and staff members. Since 2004, New Trier has hosted an annual Literary Festival with a series of workshops for students organized by the English Department. The Festival has featured numerous alumni authors, playwrights, directors and performance artists including Greg Allen, Burt Levy, Jennifer Schuessler, Sheldon Siegel, Sarah Ruhl, and Scott Turow. To improve communications with alumni and to help them reconnect with their alma mater and each other, in 2005, New Trier premiered its online community, www.newtrieralumni.org. Since then, more than 10,000 alumni have registered to use the site to reconnect with other alumni, post photos, and request information about former teachers and classmates. In addition, New Trier debuted a Facebook page and Twitter feed in 2010 to engage alumni, parents, students, staff, and community members. The Facebook page has gained more than 1,500 fans. In the 2011-12 school year, New Trier enrolled 4,232 students. Current students matriculate from six elementary districts serving the North Shore suburban communities of Glencoe, Kenilworth, Northfield, Wilmette, Winnetka and portions of Glenview and Northbrook – communities that reflect a tradition of support for academic achievement. Approximately 98% of graduates continue on to college. The average ACT score for the class of 2012 was 27.7, one of the highest average scores for any public high school in the country and the highest of non-magnet schools in the state of

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Illinois. The class of 2012 included a Presidential Scholar Semifinalist, 16 National Merit Scholars, a National Hispanic Scholar, 30 National Merit Finalists, a National Achievement Finalist, 34 National Merit Semifinalists, and 68 students who received National Merit Letters of Commendation. The Prairie State Achievement Exam (PSAE) is the state-required test that all juniors must take in order to fill state and national requirements for the No Child Left Behind (NCLB) legislation. The PSAE is comprised of the ACT, ACT Work Keys, and a state-developed test in Science; all test scores in Math and Reading (ACT and Work Keys) are combined to create a scale score for each student in those two subject areas, and then student achievement is measured against state standards. Student scores are placed in one of four categories: Exceeds Standards, Meets Standards, Below Standards, or Academic Warning. Schools must test a minimum of 95% of juniors overall and 95% of students in each subgroup of over 45 students (such as Asian/Pacific Islander and Students with Disabilities). For 2011-12, New Trier High School met the requirements of the federal and state NCLB legislation in the “All Students” category and several subgroups, making Adequate Yearly Progress (AYP) in the number of students tested and in the overall percentage of students who met or exceeded standards in each subject area. While last year we did not make AYP in the “Students with Disabilities” subgroup in Reading and Mathematics, we did make it in this subgroup this year by reaching our “safe harbor” targets. However, the school did not make AYP overall, due to the “Economically Disadvantaged” subgroup not meeting standards in mathematics. While we will continue to focus on the needs of these students, overall, New Trier’s scores continue to be among the highest in the state and in the nation as a whole. Current Initiatives The New Trier learning community is constantly seeking to grow and develop. Current major initiatives in academics, facilities, and technology are being implemented. For the past year, one of our main academic initiatives involved a focus on effective teaching, including the supervision and development of teachers at every stage of their careers. During the 2011-2012 school year, a group of administrative and faculty leaders revised our framework that describes best practices in teaching, the Characteristics of Professional Practice. This document is informed both by broad principles founded in educational research and the unique academic culture of New Trier High School and the community. A further outcome of this work is a new teacher evaluation system that is being implemented in the 2012-13 school year. Other initiatives include effective integration of technology into the curriculum through the use of iPads, literacy development, curriculum development, response to intervention (RtI) initiatives, and promotion of a safe and supportive learning environment. New Trier’s planning goals and action plans focus on the social, emotional, physical, and intellectual development of every student. New Trier’s approach to creating programs for improving teaching and learning continues to follow the principles of effective staff development outlined by the National Staff Development Council. This year will be the school’s second year of implementing Professional Learning Cohorts for use in individual professional development. In these cohorts, groups of teachers study instructional practices and use student data to examine an area of common professional interest. Sample topics for learning cohorts included “Critical Thinking Across the Curriculum,” “Impact of Nutrition and Fitness on Student Learning,” and “Teaching Film and Film Literacy.” In addition, a nationally recognized expert spoke at the whole-school Institute Day in November. Ken Ginsburg of the University of Pennsylvania discussed fostering resilience in our students.

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Curriculum development continues to be the focus of course-level teams that meet during common planning time, on late start days, after school, during half-days, and in the summer. These course-level teams focus on curriculum development or on essential questions and themes that guide curriculum development. They also work to align curricular goals with the selection of texts and supplemental materials. While the teachers on these course-level teams do not create a scripted curriculum, they do write common goals and they design common experiences for students. As the Common Core Standards emerge, our mathematics and English departments are working to blend our current curriculum with the demands of these new standards that will be part of state testing in a few years. New Trier continues with its school-wide focus on creating a safe and respectful learning environment through a committee established during the Strategic Planning process. The committee, formerly known as Ethical Conduct and Global Citizenship, has been renamed the Social Emotional Learning Initiative to more clearly define its goals. Those goals focus on three areas within the school. The first is the overall climate of safety and respect among students and staff. To study school climate, data from surveys of staff and students will be used, and a school climate committee will be formed during the second semester. The second goal involves the direct instruction of social and emotional learning skills as part of the curriculum. This goal is the focus of a learning cohort and a potential partnership with the Center for Academic Social and Emotional Learning. The third and final goal seeks to articulate the curriculum of social and emotional learning across the township. In partnership with the six public K-8 districts in the New Trier Township, the high school is sponsoring the creation of a short film highlighting the importance of SEL skills and a common professional development experience in each district’s schools. The Equity Team will focus this year on better understanding the experience of all of our students. By examining the 2012 Youth Risk Behavior Survey data and conducting interviews with student focus groups, the Equity Team hopes to better understand the impact that difference has on New Trier students’ experiences. To celebrate those differences, the Voices in Equity Project will undertake a campaign entitled “I am New Trier” to highlight the ways in which our students are unique individuals and celebrate the diversity within this school. Helping students and staff create healthy, balanced lifestyles has been one area of focus that emanated from the 2005-2010 Strategic Plan; the All School Wellness Team, comprised of staff, student, and parent representatives, has identified areas of wellness from the 2012 Youth Risk Behavior Survey data that should be celebrated as areas of strength as well as areas that require further attention to promote student health. The team has identified five areas for further attention and is working with established school committees to further understand the data from the survey by conducting student focus groups and then implementing strategies for positively impacting student behavior. With respect to facilities, the District underwent an extensive study of the facilities on both campuses from 2006 through the fall of 2009, at which time the administration recommended that the Board place a question on the ballot for the February 2010 General Election seeking voter approval of funding for a $174 million construction/renovation project at the Winnetka campus. In February 2010, the referendum was defeated 63 percent to 37 percent. Since that time, the Board and the Administration have discussed the next steps, ultimately deciding to reach out to the community to solicit input about their vision for the future of New Trier. In the winter of 2010, a survey developed by ECRA, an independent educational research firm, was distributed to the entire community. The majority of respondents said the facilities project proposed in the referendum was too large, too expensive, and poorly timed given the state of the local and national economy.

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Respondents also stated that future projects needed to be directly tied to the values of promoting academic excellence and high-quality teaching. From 2010 through 2012, the Facilities Steering Committee conducted studies about several issues related to planning for future facilities projects. During the past two years, the Steering Committee and other groups have reported to the Board the results of the Strategic Planning assessment, a Land-Building-Field Use study, Evaluation of the 1-3 Model, and a study of ADA accessibility problems on both campuses. In addition, another committee is researching the use of space, technology, and furniture in an ideal-sized classroom; this project is entering its third year of study and there have been several reports to the Board about their findings. The current facilities initiatives include several projects completed during the summer of 2011. The more significant projects were resurfacing of the Northfield Campus locker room floors, completion of the innovative classroom projects, the wood floor-resurfacing project at the Winnetka Campus, and security camera upgrades district-wide. There were also several Health Life Safety projects completed during the summer of 2011 as the District worked to close out its existing Health Life Safety Amendments. These projects included replacing the tennis court entrance and the Tower Building canopy roofs at the Winnetka Campus and replacing the Building F roof at the Northfield Campus. After the completion of these projects, the final remaining project from the open Health Life Safety Amendments was to replace the site fence and gates at the Northfield Campus. This project was completed during the summer of 2012. Following the close-out of the open Health Life Safety Amendments, the District had nearly a $1.8 million reserve in the Health Life Safety Fund due to efficiencies in the bidding process as well as lower costs related to the weaker economy. Faced with a number of Health Life Safety projects at both campuses, the administration recommended and the Board approved new amendments for both the Winnetka and Northfield Campuses that were authorized through the State Board of Education. Based on these approved amendments, in addition to replacement of the fence and gates at the Northfield Campus, the District also replaced site handrails and railings at Northfield during the summer of 2012. At the Winnetka Campus, Health Life Safety projects completed in 2012 included replacing the Bell/Clock/PA System racks, replacing the Gates Gym operable Clerestory windows, and completing phase one of masonry repairs to the Gates Gym. One of the more exciting projects completed during the summer of 2012 was the installation of synthetic turf fields in the Northfield Campus stadium and the adjacent practice fields. The cost of the project was $3.3 million, but the benefits for our students and the impact on our programs in Kinetic Wellness, activities, intramurals, and interscholastic sports was significant. In addition the substantial donation offer of $1 million from the Booster Club made this a wise investment at this time. Some of the major benefits of the synthetic turf include maximizing usage of the stadium field, increasing usage and improving the quality of adjacent play fields, maximizing maintenance efficiency, managing storm water, and increasing rental income. The project was complemented by installation of a brick plaza, a new ticket booth, and a donor wall in the entry area of the Northfield Stadium. In addition to the very generous donation by the Booster Club, the District was able to obtain very attractive financing for this project. The District entered into a lease-finance arrangement with JPMorgan Chase on a five-year lease at an interest rate of 1.275%. The District also used this lease to finance the network and virtual infrastructure upgrade. This project is further described below. Other facility projects that are scheduled to be completed beginning in the summer of 2012 include installation of the baseball backstop system, replacement of auditorium speakers, replacement of wheelchair lifts at the Winnetka Campus, repairs to concrete at the Northfield Campus, and renovation of the small cafeteria at the Winnetka Campus. The annual cleaning and preventive maintenance programs are still in place as well.

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Technology development continues to move at a fast pace at New Trier. Over the past five years, all major legacy systems have been upgraded, including the school’s network, e-mail system, phone system, student information system, document management system, and the financial management system. Our wireless network, storage area network, and virtual servers were completely replaced in order to increase capacity and to provide for faster service for our students and staff. New Trier is in a unique position compared to most institutions; these upgraded systems that use current technology are more reliable and less expensive to operate, and they also provide the functionality needed to efficiently implement District services and provide support for instruction.

Teachers continue to use technology effectively for instruction in a variety of ways. This year, the Mobile Learning Initiative was launched, which puts iPads in the hands of approximately 15% of New Trier students. Teachers were selected to participate as a result of a rigorous selection process that evaluated their plans for using technology with students to foster collaboration, create content, and use online texts. The initiative is off to a strong start, and will be rigorously evaluated before a decision is made to end, continue, or expand it. The Technology Planning Committee continues to study the use of various types of technology for instruction and learning, including laptops, netbooks, desktop computers, calculators, smart phones, and tablets. Over the past three years, the District has developed and installed five new innovative classrooms. These classrooms have been designed to investigate how space, furniture, and technology support 21st century teaching and learning. A committee of faculty members, students and parents evaluated these spaces during the 2010-11 school year; the results of the evaluation were positive, and future expansion of this initiative is being considered. Improvements also continue on the technology infrastructure and administrative systems areas; the Department of Technology upgraded the phone service and internet capacity to improve service and to reduce costs, and migrated to Windows 7. Technology staff is also in the process of implementing desktop virtualization, which will give users the ability to access a Windows desktop from many types of devices, such as iPads, laptops and Macs from both school and home. This technology will improve the experience of users while at the same time slowing the growth of support costs. In March 2012, the Board of Education approved a resolution to refinance the District’s 2005 Series A Bonds. The historically low interest rates coupled with the District’s Aaa bond rating, provided an opportunity in which the District could generate present value savings of nearly $300,000. The District sold the bonds through a direct private placement sale, which closed in September 2012 at an interest rate of 1.58%. The Aaa rating from Moody’s Investors Service was beneficial not only in securing the excellent terms in this refinancing transaction, but also in securing excellent rates for the lease financing arrangement for the synthetic turf project discussed earlier. The highest-quality Aaa rating reflects the District's substantial tax base with above average income levels; strong financial operations with ample reserve levels; and low debt burden with rapid principal amortization. Moody’s believes that the District’s financial outlook will remain sound, given ample General Fund reserves and the District’s adherence to a policy of maintaining reserve levels no less than 37.5 percent of revenues. The District has a history of very strong financial operations, a reflection of its prudent financial management and foresight. Future Initiatives New Trier staff identified several key initiatives for current and future focus: continued development and assessment of strategic planning initiatives; communication to parents and students; staff development that focuses on student academic and personal growth; and new technologies for teaching and learning.

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Student transitions into and out of high school have been a focus of study for the past several years, through the Strategic Plan and other committees. This focus on transition has led to an improved experience for both students and parents as freshmen enter high school. Currently under review is the transition experience of students from Northfield to the Winnetka Campus and transition to life beyond New Trier as they enter college and become adults. The transition from freshman to sophomore year is an area for focused study for both campus leadership teams this year. Following the analysis of the 2012 Youth Risk Behavior Survey, it has become clear that some unhealthy behaviors increase during the sophomore year. The work of the leadership teams will focus on understanding why this increase is occurring and then implementing strategies to positively impact this behavior. In partnership with the 21st Century Benchmark Consortium, New Trier is surveying recent graduates to better understand how well prepared our students are in the areas of writing, mathematics, and social and emotional skill development. We will compare our data with the data collected from other Consortium schools to better understand how well we are preparing students for college and in what areas we may need to focus more attention. In accordance with the recommendations of a committee of staff and parents, the school is conducting a study of best practices in communication regarding student progress. Our study is focused first on understanding the impact that offering students online access to their grade reports has on the learning environment. At the end of second semester last year, approximately twenty-five teachers offered their students online access to their grade reports. This study continues this year as we seek to better understand the impact of offering this access to students. The committee will survey students about their experience with the system and conduct focus groups with participating teachers. The Technology Planning Committee, composed of students, teachers, administrators, and Board members continues to focus on the integration of technology into the classroom. This year, the committee will focus primarily on evaluating and supporting the Mobile Learning Initiative, and will help craft recommendations about the future of the initiative. Process management continues to be a focus as we automate and improve paper-based processes; these improvements save faculty and staff time, reduce errors, and improve the timeliness of dissemination and collection of information. With respect to District facilities, as indicated under Current Initiatives, the administration has identified additional Health Life Safety deficiencies that need to be addressed over the next five years. This list focuses primarily on buildings or specific areas at the Winnetka and Northfield Campuses that are unlikely to be replaced in a future capital project. Current estimates for this Health Life Safety work total approximately $13.4 million. The District had nearly $1.8 million in Life Safety reserves to complete work in the new amendments, which started in the summer of 2012. Other funding sources will be used to complete the balance of the projects including the sale of Health Life Safety Bonds. The Health Life Safety projects anticipated for the summers of 2013 and 2014 include renovating the emergency lighting and house lights in the Gaffney Auditorium, abating the Tower Building water main asbestos insulation, and repairing the tennis courts at the Northfield Campus. Another key initiative related to the facilities is an analysis of the District’s operation and maintenance department. With the retirement of John Neiweem, the District’s highly successful Director of Physical Plant Services in June 2012, the administration and Board of Education made the decision to complete a review of the Physical Plant Services Department. In the interim, the District’s Maintenance Managers, Dave Conway and Steve Linke, have taken over the leadership of the department during this transitional period. It is anticipated that decisions regarding future

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leadership of the department as well as general operational changes to the department will be made in early 2013. New Trier has now reached the end of an upward enrollment trend that began in 1991 when enrollment was 2,710. The District’s enrollment is projected to slowly decline over the next several years to around 4,000 students by 2017. This slow decline will require New Trier to continue to assess its programs to ensure that the needs of students and the community are being met in a most effective and efficient manner. Economic Condition & Outlook New Trier Township High School is located within Cook County, Illinois, along the north shore of Lake Michigan. Appreciation of the value of homes has been significant. As a result, the total equalized assessed valuation, in excess of $1 million per student, ranks the District in the upper 5% of school districts in the State of Illinois in terms of taxable wealth per pupil. The Illinois Legislature continues to consider ways to reform school funding in the state. The Illinois system for distributing general state aid has not kept pace with cost increases and demographic changes, resulting in inequities and inadequate state support for many school districts. New Trier supports a position that will help preserve access to funding and provide opportunities for the students within the District. The Property Tax Extension Limitation Act (more commonly known as “Tax Cap”) was part of Public Act 89-1, effective February 12, 1995 with the 1994 Levy. This Act imposes a mandatory property tax limitation on taxing districts located in Cook County. (The tax cap was initially enacted in the counties contiguous to Cook County effective October 1, 1991 with the 1991 Levy.) More specifically, the act limits the increase in property tax extensions to 5% or the percent increase in the previous calendar year’s national Consumer Price Index (CPI), whichever is less. The voters must approve increases above 5 percent or the CPI in a referendum. Excluded from this legislation are general obligation bonds sold prior to February 12, 1995 (October 1, 1991 in the collar counties) or approved by a referendum. The act also permits adjustments over the limitation proportional to new property added to the tax base. The tax cap does not make adjustments for growth in enrollment, mandated life safety repairs, or extensive capital projects, such as reopening the Northfield Campus or renovations to the Winnetka Campus buildings. As New Trier has developed long-range financial projections, it has considered enrollment projections, staffing plans, program evaluation and needs, special education services, technology and building maintenance on both a short and long-term basis. These factors have been evaluated with an overall goal to maintain the existing quality of educational programs, continue with the current initiatives, and make program enhancements where educationally sound. However, like the rest of the state and the country, New Trier faces financial challenges in the upcoming school year. A combination of factors is putting stress on public schools in Illinois. The coming school year will be a difficult one financially, and the District will continue to plan carefully to meet the challenges as the economy slowly recovers. The most significant factor for New Trier was the Consumer Price Index (CPI) for 2008, which impacted the District’s tax revenues for the 2010-11 school year. The District relies heavily on local property tax revenues, which account for approximately 90 percent of the District’s total revenues. The 2008 CPI was 0.1%. Due to the tax cap laws, this limits the District‘s tax revenue increase to 0.1%. To put this into perspective, since tax cap laws were historically enacted in 1995, the average increase in the CPI has been around 2.6%. This historically low CPI of 0.1%, compared to the

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average, has resulted in a significant annual loss of tax revenues to the District. In addition, the extremely low interest rate on District investments has resulted in a loss of interest income of $1.2 million, compared to interest earned just a couple of years ago. Finally, given the poor financial condition of the state, the District is threatened with not only delays in receiving state revenues but a significant loss of state revenues. However, the news is not entirely bleak. Fortunately, as a result of our historically prudent fiscal management, including developing a solid reserve level and implementing cost containment measures over the last two years, New Trier has entered this period in a relatively strong financial position. While some Districts have been forced to make deep reductions to staffing, New Trier has been able to avoid these drastic cuts at this time. The 2008 CPI of 0.1% did require the District to make the difficult decision to reduce some staffing for 2010-11 through both attrition and reduction in force. However, implementing these budget reductions eased some of the budget pressures faced in developing a balanced budget for FY 2011-12. The 2009 CPI was more in line with historical averages at 2.7%, but fell back down to 1.5% in 2010, creating a financial strain for the 2012-13 Budget. The 2011 CPI, which will primarily fund the 2013-14 Budget was 3.0%. New Trier will need to continue to employ cost containment measures this year and in the future to weather the economic downturn. It is important that all stakeholders be involved in this process. It will be important to encourage creativity and engagement at all levels and to draw on the District’s staff and the community’s ideas to identify how the District can be strengthened. The worldwide recession has obviously hit the housing market hard. In District 203, the reduced housing values resulted in the District’s Equalized Assessed Valuation dropping from $6.9 billion in 2009 to $5.4 billion in 2011 – a decrease of nearly $920 million dollars or 13.2% in just two years. As a result, the District’s total tax rate has increased from 1.236 to 1.674. Fortunately, the 1.674 tax rate is still significantly below the District’s maximum tax rates, so there was no further loss of tax revenues beyond the tax cap reductions. The economy and housing market may also be impacting the District’s enrollment. In 2012-13, based on the 2010 demographic study, enrollment was projected to decrease by 36 students, but instead was relatively flat. While this is a rather minor change, there is uncertainty with future projection trends which currently indicate enrollment will decline by more than 200 students in FY 15 and 16. The next demographic study, scheduled for December 2012, will likely provide additional clarity about trends in student enrollment. Other key factors facing the District in the years ahead include Health Care Reform and Pension Reform. With respect to Health Care Reform, in June 2012, the Supreme Court upheld the “individual mandate” provided under the Patient Protection and Affordable Care Act (PPACA) on the basis that the mandate is a constitutional exercise of the power of Congress to tax. Therefore, employers will need to continue to comply with the Act, including several upcoming requirements that affect group health plans. The District is working through our Insurance Cooperative to comply with the PPACA, as we await further clarification on other open issues. Pension reform continues to be a primary policy issue in Illinois. Over the last three years, the General Assembly has considered several proposals to alter pension benefits for current employees and retirees. Some of these proposals have been presented in the form of legislation while several others have been introduced less formally, but appear to be gaining traction. These proposals generally provide employees with a choice of retirement packages. However, more critically, several of these proposals shift costs for the pension system from the State to the Districts. This has the potential of being a significant financial burden to the District and is being monitored closely. As the District looks forward through the balance of this decade, the District’s financial position remains strong and on target with the Board of Education’s commitment made in concert with the

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successful referendum in April 2003. The graph, provided below, illustrates the District’s actual and projected revenues, expenditures and fund balances from FY 2009-10 through FY 2017-18.

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20,000

40,000

60,000

80,000

100,000

120,000

140,000

2009‐10 2010‐11 2011‐12 2012‐13 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18

Dollars

Fiscal Years

Historical and Projected Revenues, Expenditures and Fund Balances

Operating Funds and Working Cash FY10 ‐ FY18

Revenues Expenditures Ending Fund Balance 4.5 Months of Expenditures

As illustrated in the graph, beginning in FY 2012-13, projected revenues and expenditures track closely through FY 2017-18. During this time period, revenues are projected to grow at an annual rate of 3.13 percent, while growth in expenditures are projected at 3.29 percent per annum based on the District’s current assumptions. The bottom two lines in the graph illustrate the District’s Fund Balance (actual and projected) and a dollar amount representing 4.5 months of expenditures. The 4.5 months of expenditures is significant because it represents the Board’s referendum commitment to maintain a minimum of 4.5 months in reserve for at least five years as recommended by the District’s auditors. As illustrated in the graph, the District has been successful in not only meeting this five-year commitment, but also extending these minimum required reserve levels several years further into the future. To stay on this financial course requires that continuous efforts be made to implement cost containment measures, to explore opportunities to improve cost efficiencies, and to control expenses within the financial resources that are available to the District. The Board and Administration are dedicated to excellence in education, seeking to balance educational needs with sound fiscal practices. Reporting Entity The District includes all funds that are controlled by or are dependent on the Board of Education of the District, as determined on a basis of financial accountability. The District does not have such financial accountability over any other entity and thus does not include any other entity as a

xi

component unit in this report. Additionally, the District is an independent entity, not includable as a component unit of any other reporting entity. Accounting Systems and Budgetary Control The financial statements have been prepared in accordance with Generally Accepted Accounting Principles, which are appropriate to local government units of this type. The presentation allows the reader to obtain an overview of the District’s financial operations by viewing the combined statements in the front section of this report. Detailed representations of the combined statements are available throughout the remainder of the report. All figures used in the following information were obtained or derived from these financial statements, attached herewith. The District administration is responsible for establishing and maintaining internal controls designed to ensure that the assets of the District are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with Generally Accepted Accounting Principles. The internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and the valuation of costs and benefits requires estimates and judgments by management. As part of the audit of the District, the District’s independent auditor considered the District’s internal controls to determine auditing procedures for the purpose of expressing an opinion on the financial statements. The auditor also performed tests of the District’s compliance with certain provisions of laws, regulations, contracts and grants. The results of the audit for the fiscal year ended June 30, 2012, disclosed no instances of material weaknesses in the internal controls or material noncompliance of certain provisions of laws, regulations, contracts, and grants. The District maintains sound budgetary controls to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the District’s Board of Education. Activities of the Educational Fund, Operation and Maintenance Fund, Transportation Fund, Municipal Retirement/Social Security Fund, Working Cash Fund, Debt Service Fund, Capital Projects Fund, and Fire Prevention & Life Safety Fund are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by fund level. The District also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts lapse at year-end. As demonstrated by the statements and schedules included in the financial section of this report, the District continues to meet its responsibility for sound financial management. Capital Assets The capital assets of the District are those assets used in the performance of general governmental functions. As of June 30, 2012, the capital assets of the District amounted to $133,121,421. This amount represents the actual and historical original cost of the assets and is considerably less than their present replacement value. The District utilizes the services of an outside appraisal service for the appraisal, control, and inventory of capital assets. Industrial Appraisal Company completed a complete appraisal of all the District’s capital assets in the spring of 2012. Annual appraisals are used for updating of replacement values for insurance purposes with the District providing historical cost information. The District maintains outside third-party insurance coverage to protect the District from fire, theft and severe financial losses.

This Certificate of Excellence in Financial Reporting is presented to

NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203

For its Comprehensive Annual Financial Report (CAFR) For the Fiscal Year Ended June 30, 2011

Upon recommendation of the Association’s Panel of Review which has judged that the Report substantially conforms to principles and standards of ASBO’s Certificate of Excellence Program

President Executive Director

xiii

xiv

July 2012Human Resources/gs

Board of Education

SuperintendentLinda Yonke

Associate Superintendent

Don Goers

Director Human

Resources GeorgeSanders

New Trier ExtensionManager

DirectorPhysical Plant

ServicesSteve Linke-WDave Conway-N

Director Business Services

ChrisWildman

Northfi eldAdviser Chairs

& Student Services

Leadership(Campus

Leadership)

Physical Plant Services

Managers

PrincipalWinnetka Campus

Tim Dohrer

Assistant SuperintendentCurriculum and Instruction

Paul Sally

DirectorAthletics

Randy Oberembt

Asst. PrincipalAdministrative

Services

Matt Ottaviano

DirectorSpecial

Education

Ellie Ambuehl

Assistant Athletic

Director and Athletic

Coordinator

WinnetkaAdviser Chairs

&Student Services

Leadership(Campus

Leadership)

SecurityManager

PrincipalNorthfi eld Campus

Paul Waechtler

Assistant Principal

Denise Hibbard

Technology Managers

Performing Arts

Coordinators(Campus

Leadership)

DepartmentChairs and

Department Coordinators

(Curriculum &Instruction)

Director Technology

Chris Johnson

Asst. PrincipalStudent Services

Katherine U. Schindler

DirectorAcademic Services

Linda Knier

Director Student Life

AthenaArvanitis

Student Activities

Coordinators(Campus

Leadership)

Organizational Chart

2012-2013

Assistant SuperintendentStudent Services

Tim Hayes

Director Communications

Niki Dizon

Activities,Perf Arts,AthleticLeaders(District)

StudentServices

Leadership(District)

Administrative Services Leaders(District

Leadership)

DepartmentChairs

(Campus Leadership)

Athletic,Perf Arts,Activities

Coordinators(Campus

Leadership)

Dept.Coordinators

(CampusLeadership)

HumanResourcesManager

xv

xvi

NEW TRIER TOWNSHIP HIGH SCHOOL DISTRICT 203 Cook County 7 Happ Road

Northfield, IL 60093

Comprehensive Annual Financial Report Year Ended June 30, 2012

List of Principal Officials

Term Board of Education Expires Alan R. Dolinko President 2013 F. Malcolm “Mac” Harris Vice-President 2013 Carol F. Ducommun Member 2013 Peter D. Fischer Member 2015 Lori A. Goldstein Member 2015 John Myefski Member 2013 Patrick O’Donoghue Member 2015

District Administration

Linda L. Yonke, Ed.D. ….………..………….……………………………………….…. Superintendent Donald R. Goers ……………………….…………………………………… Associate Superintendent

Ellen W. Ambuehl ………………………………….………………… Director of Special Education Nicole Dizon……………………………………………………………… Director of Communications Timothy A. Dohrer, Ph.D. …………………….………….…..…… Principal, Winnetka Campus Timothy Hayes …………..………..........…... Assistant Superintendent for Student Services Christopher T. Johnson ………………….……………………………….…. Director of Technology Paul J. Sally………….........….. Assistant Superintendent for Curriculum and Instruction George H. Sanders ….………….….………………………………….Director of Human Resources Paul Waechtler ………....…….……………………………………… Principal, Northfield Campus Christopher M. Wildman …………..…………………….……….. Director of Business Services

Official Issuing Report

Donald R. Goers Associate Superintendent

Department Issuing Report

Business Office

1

Independent Auditor's Report Members of the Board of Education New Trier Township High School District 203 Northfield, Illinois We have audited the accompanying financial statements of the governmental activities, the major fund and the aggregate remaining fund information of New Trier Township High School District 203 (“District”) as of and for the year ended June 30, 2012, which collectively comprise the District’s basic financial statements as listed in the table of contents. These financial statements are the responsibility of the District's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, the major fund, and the aggregate remaining fund information of New Trier Township High School District 203 as of June 30, 2012, and the respective changes in financial position, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 3-15, schedules of funding progress on pages 44-45 and the budgetary schedule and related note on pages 46-47 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 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.

2

Our audit was conducted for the purpose of forming opinions on the basic financial statements that collectively comprise the District’s basic financial statements. The combining and individual fund financial statements and other schedules listed in the table of contents as supplementary information are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

The accompanying introductory and statistical sections, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has 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 it.

Chicago, Illinois November 30, 2012


Management’s Discussion And Analysis (MD&A)

New Trier Township High School District 203

Management’s Discussion and Analysis

For the Year Ended June 30, 2012

3

The discussion and analysis of New Trier Township High School District 203’s (“District”) financial performance

provides an overall review of the District’s financial activities for the year ended June 30, 2012. The management

of the District encourages readers to consider the information presented herein in conjunction with the basic

financial statements to enhance their understanding of the District’s financial performance. Certain comparative

information between the current year and the prior is required to be presented in the Management’s Discussion

and Analysis (the “MD&A”).

Financial Highlights

The General Fund had $101.4 million in revenues and other financing sources and $98.0 million in expenditures and other financing uses. This excess of revenues and other financing sources over expenditures and other financing uses of $3.4 million increased the fund balance from $67.0 million to $70.4 million in FY 2012. The $3.4 million increase in fund balance exceeded the $1.2 million surplus projected in the budget due to a $1.7 million positive variance of actual revenues and other financing sources to budget and a $0.5 million positive variance of actual expenditures and other financing uses to budget. The sources of additional revenue are mainly restricted state and federal aid and capital leases. The budget was under expended primarily in regular programs, operations and maintenance, and payments to other governments, which was offset by a transfer out.

In the Transportation Fund, revenues exceeded expenditures and other financing uses by $0.2 million,

increasing the fund balance from $2.2 million to $2.4 million in FY 2012. The increase in fund balance was in excess of the $(0.1) million deficit that was projected in the budget, attributed in large part to the expenditures being below budget by $0.2 million primarily due to special education transportation costs being less than anticipated.

In the Capital Projects Fund, a $2.5 million transfer was made from Working Cash Fund to finance the

District’s synthetic turf project which began in May 2012. The District also completed a lease financing arrangement in which $2.2 million was allocated for the $3.3 million turf project.

In the Fire Prevention and Life Safety Fund, expenditures exceed revenues by $1.4 million, though a

deficit of $2.0 million was anticipated. The budget was under-expended by $0.6 million, primarily due to capital projects that were deferred.

Total net assets of governmental activities increased by $3.4 million primarily because of operations in FY

2012.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the District’s basic financial statements.

The basic financial statements are comprised of three components:

Government-wide financial statements,

Fund financial statements, and

Notes to the financial statements.

This report also contains other supplementary information in addition to the basic financial statements.




4

Government-wide financial statements

The government-wide financial statements are designed to provide readers with a broad overview of the District’s

finances, in a manner similar to a private-sector business.

The statement of net assets presents information on all of the District’s assets and liabilities, with the difference

between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful

indicator of whether the financial position of the District is improving or deteriorating.

The statement of activities presents information showing how the District’s net assets changed during the fiscal

year being reported. All changes in net assets are reported as soon as the underlying event giving rise to the

change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this

statement for some items that will only result in cash flows in future fiscal periods.

The government-wide financial statements present the functions of the District that are principally supported by

taxes and intergovernmental revenues (governmental activities). The District has no business-type activities; that

is, functions that are intended to recover all or a significant portion of their costs through user fees and charges.

The District’s governmental activities include instructional services (regular education, special education and

other), supporting services, operations and maintenance of facilities and transportation services.

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 District uses fund accounting to ensure and demonstrate

compliance with finance-related legal requirements. All of the funds of the District can be divided into two

categories: governmental funds and fiduciary funds (the District maintains no proprietary 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 the fiscal year. Such information may be useful in

evaluating a school district’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 this comparison between governmental funds and governmental activities.

The District maintains six individual governmental funds. Information is presented separately in the governmental

fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund

balances for the General Fund (Educational, Operations and Maintenance, and Working Cash Accounts) and the

Nonmajor Governmental Fund (Transportation, Municipal Retirement/Social Security, Debt Service, Capital

Projects, and Fire Prevention and Life Safety Funds).




5

The District adopts an annual budget for each of the funds listed above. A budgetary comparison statement has

been provided for each fund to demonstrate compliance with this budget.

Fiduciary funds are used to account for resources held for the benefit of parties outside the school district.

Fiduciary funds are not reflected in the government-wide financial statement because the resources of those

funds are not available to support the District’s own programs. The accounting used for fiduciary funds is much

like that for the government-wide financial statements.

Notes to the financial statements

The notes to the financial statements provide additional information that is essential to a full understanding of the

data provided in the government-wide and fund financial statements.

Other information

In addition to the basic financial statement and accompanying notes, this report also presents certain required

supplementary information concerning the District’s progress in funding its obligation to provide pension benefits

to its non-certified employees.

Government-Wide Financial Analysis

As indicated in Table 1 below, capital assets total $68.2 million, representing approximately 34.2 percent of total

assets. Compared to FY 2011, capital assets decreased by $1.3 million, attributed to increased depreciation

expense in FY 2012 as well as more fully depreciated assets. There was an increase in current and other assets

in FY 2012 of $6.7 million or 5.4 percent primarily due to an increase in cash and investments. This increase in

cash and investments was offset by a decrease in due from other governments. Long-term debt outstanding is

$24.3 million or 32.0 percent of total liabilities. This is consistent with FY 2011. Other liabilities increased by $2.0

million from FY 2011 primarily due to an increase in accrued salaries and benefits and unearned revenue.

As a result of the change in assets and liabilities noted above, net assets increased 2.8 percent or $3.4 million.

The total net assets, as of June 30, 2012, are $123.3 million. Of this total, $63.2 million is unrestricted (51.3

percent), $11.6 million is restricted (9.4 percent), and $48.5 million (39.3 percent) is invested in capital assets net

of related debt. In FY 2011, $60.2 million of total net assets were unrestricted. Additional information is available

in the Statement of Net Assets on pages 16-17.




6

Table 2, Changes in Net Assets, illustrates in summary form revenues and expenses from FY 2012 and the increase in net assets of $3.2 million. Comparative data from FY 2011 is also illustrated.

The major variances in revenues from FY 2011 to FY 2012 occurred in tax revenue, which increased $2.6 million

or 3.0 percent. The increase is consistent with the increase in the 2010 tax extension based on the 2.7% CPI

increase (December 2009) plus the adjustment for new property. In addition, charges for services decreased

33.3 percent or $1.2 million primarily related to a new food service contract in which the food service management

firm collects food sale proceeds and pays food service cost rather than the District collecting these revenues and

paying the expense. The food service vendor contractually agrees to pay the District an annual licensing

guarantee. Operating grants and contributions increased 4.1 percent or $0.6 million primarily related to increases

in state and federal restricted aid. Overall, revenues increased $1.9 million or 1.8 percent.

Total expenses increased $2.8 million or 2.7 percent from FY 2011 to FY 2012. The major variance in expenses

occurred in Instruction ($3.6 million), which can mainly be attributed to a $1.2 million increase in State on behalf

contributions to TRS, a $0.3 million increase in depreciation expenses, and planned increases for salaries and

benefits. Pupil and instructional services increased by $0.6 million due to planned salary and benefit increases.

Administration and Business decreased $1.6 million or 27.1 percent related to a decrease in food service expense

related to a new contract as explained above. Operations and maintenance increased $0.4 million or 3.7 percent

related to planned salaries, benefits and capital projects.

Table 1

Condensed Statement of Net Assets

(in millions of dollars)

2012 2011

Percentage

Change

Current and other assets $131.0 $124.3 5.39

Capital assets 68.2 69.5 -1.87

Total assets 199.2 193.8 2.79

Other liabilities 51.6 49.6 4.03

Long-term debt outstanding 24.3 24.3 -

Total liabilities 75.9 73.9 2.71

Net assets:

Invested in capital assets, net of

related debt 48.5 48.9 -0.82

Restricted

Unrestricted

11.6

63.2

10.9

60.2

7.41

4.98

Total net asset $123.3 $119.9 2.84




7

The District is extremely dependent upon tax revenues, which account for 82.6 percent of total revenues. This

percentage is slightly higher than the 81.6 percent in FY 2011 due to an increase in tax revenues and total

revenues compared to FY 2011. Operating grants and contributions increased $0.6 million in FY 2012 and now

accounts for 13.9 percent of total revenues compared to 13.6 percent in FY 2011 due to reductions in other

revenue sources. Charges for services decreased from 3.4 percent to 2.2 percent of total revenues related to the

previously discussed change in the food service contract. Other revenue accounts for 0.5 percent of total

revenue down from 0.6 percent in FY 2011 as investment earnings continue to decline.

Table 2

Changes in Net Assets


2012 2011

Percentage

Change

Revenues:

Program revenues:

Charges for services $2.4 $3.6 -33.33

Operating grants & contributions 15.1 14.5 4.14

General revenues:

Taxes 89.7 87.1 2.99

General state aid 0.9 0.9 -

Other 0.5 0.6 -16.67

Total revenues 108.6 106.7 1.78

Expenses:

Instruction 68.5 64.9 5.55

Pupil & instructional services 16.3 15.7 3.82

Administration & business 4.3 5.9 -27.12

Transportation 1.7 1.7 -

Operations and maintenance 11.3 10.9 3.67

Other 3.1 3.3 -6.06

Total expenses 105.2 102.4 2.73

Increase in net assets $3.4 $4.3

Ending net assets $123.0 $119.9




8

2012 Government-Wide Revenues by Source

2.2%13.9%

82.6%

0.8% 0.5%

Charges for services Operating grants & contributions

Taxes General state aid

Other

With respect to the District’s expenses by function, instruction and pupil & instructional services account for 80.6

percent of total expenses or $84.8 million. This is a 5.2 percent increase, compared to last year when expenses in

these functions totaled $80.6 million, representing 78.7 percent of total expenses. Operations and maintenance

services are 10.7 percent compared to 10.6 percent in FY 2011 and other expenses are 3.0 percent compared to

3.2 percent in FY 2011. The major variance in instruction and pupil & instructional services was due to planned

2012 Government-Wide Expenses by Function

65.1%15.5%

4.1%

10.7%1.6%

2.9%

Instruction Pupil & instructional serv ices

Administration & business Maintenance & operations

Transportation Other




9

salary and benefit increases, increases in State on behalf contributions to TRS, and higher depreciation

expenses. This reallocation of expenditures represents the District’s continued focus on direct instruction services

while greater cost containment measures are made in other areas of the budget. The reduction in administration

and business expense can mainly be attributed to the change made in the outsourcing of the full food service

program. Overall District expenses increased nearly $2.8 million or 2.7 percent in FY 2012 compared to FY 2011.

Additional information is available in the Statement of Activities on page 18.

Financial Analysis of the District’s Funds

The District’s General Fund (Education, Operations and Maintenance, and Working Cash Accounts) experienced

a current year surplus of $3.4 million, this surplus increased fund balance to $70.4 million from $67.0 million in FY

2011. There are several factors attributed to this surplus.

Revenues increased by $2.6 million from $97.8 million in FY 2011 to $100.4 million in FY 2012. The most

significant increase in revenues related to property taxes which increased by $2.8 million over the prior year.

Restricted state aid increased by $1.1 million over the prior year, which can be attributed to the state retirement

contribution on behalf of the District. The increases were offset by a decrease in charges for services of $1.2

million related to contractual changes in the outsourcing of the food service program and smaller decreases

totaling nearly $0.3 million in corporate personal property replacement taxes and interest income.

Expenditures increased by $2.5 million from $92.6 million to $95.1 million. This increase can be attributed to

several factors. The instructional programs and pupil support services increased by $3.9 million over the prior

year primarily related to planned increases and salaries and benefits required in union contracts and board

approved salary increases for non union employees. In addition, state retirement contributions made on behalf of

the District increased by $1.2 million over the prior year. Capital outlay also increased $0.5 million based on

approved capital projects, particularly in the area of technology. These increases were offset by $1.5 million

reduction in business expenditures, and smaller expenditure reductions totaling $0.5 million in the functions of

general administration, operations and maintenance, and payments to other governmental units

Net other financing uses were $1.8 million. The main factors to this net use were net transfers out of $2.9 million.

These transfers were to the Debt Service Fund and to the Capital Projects fund to pay for principal and interest

payments for capital leases.

The District’s Nonmajor Governmental Funds (Transportation, Municipal Retirement/Social Security, Debt

Service, Capital Projects, and Fire Prevention and Life Safety Funds) experienced a current year surplus of $2.2

million, this surplus increased fund balance to $12.2 million from $10.0 million in FY 2011. This increase is

primarily attributed to unspent lease proceeds of $2.2 million in the Capital Projects Fund and the $2.5 million

transfer from the Working Cash Fund to the Capital Projects Fund. This was partially offset by capital

expenditures in the Capital Projects Fund and the Fire Prevention and Life Safety Fund.

Revenues remained consistent at $8.5 million compared to FY 2011. A small increase in property taxes of $0.1

million were offset by a similar decrease in restricted state aid.

Expenditures decreased by $2.5 million from $13.7 million to $11.5 million. This decrease can be attributed to

capital expenditures that decreased by $2.8 million over the prior year due to significant capital improvement in

the prior year in the Fire Prevention and Life Safety Program that were financed by bond proceeds and transfers.

Transportation expenditures increased from $1.5 million to $1.6 million in FY 2012 related to the existing contract




10

and rising fuel costs. The increase from $2.8 million to $3.1 million in FY 2012 in the Municipal Retirement/Social

Security Fund expenditures can be attributed to the 6.4 percent increase in the IMRF employer rate.

Net other financing sources were $5.0 million. This was a 100% increase from FY 2011. The main factors creating

this variance in net use were net transfers in FY 2012 of $2.8 million. These transfers were to the Capital Projects

Fund to pay for principal and interest payments on capital leases. In addition the District had $2.2 million in bond

proceeds in FY 2012 to finance capital projects for the Districts field turf project.

General Fund Budgetary Highlights

For the fiscal year ending June 30, 2012, there were several budget variances. With respect to revenues,

property taxes received totaled $80.9 million, which represented an increase of $2.7 million compared to FY 2011

tax receipts of $78.2 million. Total tax receipts were in line with the budget amount of $80.9 million. Corporate

personal property replacement taxes exceeded the budget by less than $0.1 million.

State sources of revenue exceeded budget by $0.6 million. The increase is attributed to larger state payments of

delayed special education categorical grants than anticipated in the budget.

Federal sources of revenue exceeded budget by $0.2 million. This increase is attributed to IDEA Room and Board

revenue exceeding budget by $0.2 million.

Budget variances also existed in expenditures. Overall, in the General Fund, there was a positive variance of $3.0

million as actual expenditures of $83.3 million were 3.5 percent under the Budget of $86.3 million. This favorable

variance was because of under expending the budget primarily in salaries, benefits, supplies and materials,

capital outlay, and special education tuition. In addition, the contingency of $0.1 million was not used. The

significant budget variance, as noted above, reflects continued efforts to budget conservatively and to control and

reduce costs as a result of the historically low 2008 CPI of 0.1 percent which has had a significant impact on the

District’s revenues compared to projections beginning in FY 2011. The impact of this low CPI is coupled with the

State of Illinois’ poor financial picture and the uncertainty of future state revenues as well as the economic

recession being experienced globally.

A positive variance of $1.3 million occurred in Instructional Services with a major portion of this variance related to

actual salaries and benefits expenses coming in below budget. This was partially due to several unfilled

vacancies and employee benefit premiums increased less than expected. Instructional staff support services had

a positive variance of $0.3 million due to actual salaries and purchased services being lower than anticipated.

Operations and maintenance had a positive variance of $0.7 million related to salary, purchased services, and

supply costs, particularly utility costs, being lower than projected. Payments to other governments for special

education tuition had a positive variance of $0.6 million as tuition expense was less than anticipated partially

related to cost containment efforts. Capital outlay expenditures had a positive variance of $0.1 million due to lower

capital outlay for technology equipment.

Overall, the Fund Balance in the General Fund increased $3.4 million in FY 2012, from $67.0 million to $70.4

million. This was created by a positive variance of $2.2 million compared to a projected increase of $1.2 million.

As indicated above, this positive variance is attributable to both the additional revenues received over budget and

expending less than budget.




11

Additional information on the General Fund activity in FY 2012 is available in the Schedule of Revenues,

Expenditures and Changes in Fund Balance – Budget to Actual on page 46 and 50-51.

Capital Asset and Debt Administration

Capital assets

Table 3

Capital Assets (net of depreciation)


2012 2011

Percentage

Change

Land $5.2 $5.2 0.00

Construction in progress 1.2 0.6 100.00

Buildings 0.5 0.8 -37.5

Building improvements 51.9 53.8 -3.53

Equipment & furniture 9.4 9.1 3.30

Total $68.2 $69.5 -1.87

Table 3 above illustrates capital assets, net of depreciation. Capital assets include $61.8 million in building,

building improvements, and equipment and furniture and represents nearly 90.6 percent of total capital assets. In

FY 2012, there were net $5.0 million in additions and $6.3 million in depreciation expense resulting in a net

decrease of $1.3 million. Additional information is available in Note 4 – Capital Assets on page 32.

Long-term debt

Table 4 below illustrates the District’s outstanding long-term debt. The debt activity in FY 2012 consisted of

repayment of existing debt of $3.4 million and increase in capital leases of $3.2 million. In addition, accreted

interest of $0.1 million was charged to capital appreciation bonds in the current year. The District’s other debt also

increased by $0.9 million related to other post-employment benefits and pension obligations. Additional

information is available in Note 5 – Long-Term Liabilities on page 33-35.

The District is subject to the Illinois School Code, which limits the amount of bond indebtedness to 6.9% of the

most recent available equalized assessed valuation of the District. As of June 30, 2012, the statutory debt limit

for the District was $375,437,138 providing a debt margin of $354,930,284.

The ratio of general bonded debt to assessed valuation and the amount of bonded debt per capita are useful

indicators of the District’s debt position to District management, citizens, and investors. These indicators for the

District at the end of fiscal year 2012 were 0.39 percent and $442, respectively. This represents a slight decrease

compared to fiscal year 2011 in which the ratio of general bonded debt to assessed valuation was 0.40 percent

and the bonded debt per capita was $444. This decrease is due to a reduction in total debt.




12

Factors Impacting the District’s Future

Many factors bearing on the District’s financial position, from a revenue perspective, are generally outside the

control of the Board and the Administration. One major concern is the possibility of modifications to the system of

financing Illinois Public School Districts. The current system is antiquated and overly dependent on property

taxes, making it inequitable on a statewide basis; however, it does serve New Trier Township High School District

better than many alternatives being considered. The current funding system is a known quantity and allows

greater control of the budget by local government. Legislation has been introduced in recent years to modify the

school funding system. A lesser concern exists concerning the uncertainties of future state and federal revenues.

However, these sources represent a small percentage of the District’s total revenue picture.

More immediate are the financial challenges faced as a result of the worldwide recession. The economic

downturn has had a significant impact on the State of Illinois, which is already behind in sending money to the

school districts for special education, transportation and other grants. But even more critical to our District is the

Consumer Price Index, which for 2008 was an unprecedented 0.1 percent. This means that the increase in local

tax revenues, which represent 90 percent of the District’s total operational revenue source, was capped at 0.1

percent for the 2009 tax bills that are paid in 2010. The effects of this extraordinarily low inflationary factor began

impacting the District in FY 2011 and will continue to do so into the future. In preparation for this slow down in the

District’s primary source of revenue, action was taken immediately to begin to minimize the detrimental financial

impact. Alternative sources of revenue are being explored and operating expenses across the District have been

reduced. Furthermore, all expenses in the coming years will be scrutinized carefully in order to provide the funds

to maintain our outstanding programs.

Other key factors facing the District in the years ahead include Health Care Reform and Pension Reform. With

respect to Health Care Reform, in June 2012, the Supreme Court upheld the “individual mandate” provided under

the Patient Protection and Affordable Care Act (PPACA) on the basis that the mandate is a constitutional exercise

of the power of Congress to tax. Therefore, employers will need to continue to comply with the Act, including

several upcoming requirements that affect group health plans. The District is working through our Insurance

Cooperative to comply with the PPACA, as we await further clarification on other open issues.

Pension reform continues to be a primary policy issue in Illinois. Over the last three years, the General Assembly

has considered several proposals to alter pension benefits for current employees and retirees. Some of these

proposals have been presented in the form of legislation while several others have been introduced less formally,

but appear to be gaining traction. These proposals generally provide employees with a choice of retirement

packages. However, more critically, several of these proposals shift costs for the pension system from the State

Table 4

Outstanding Long-Term Debt


2012 2011

Percentage

Change

Bonds and related items $24.7 $24.8 2.49

Other 3.7 2.8 5.71

Total $28.4 $27.6 2.90




13

to the Districts. This has the potential of being a significant financial burden to the District and is being monitored

closely.

On the expense side, the District continues to project enrollment staying fairly level through FY 2014, based on

the Kasarda demographic projections completed in December 2010. However, for FY 2013, the projections

indicated a reduction of 36 students from FY 2012 enrollment of 4,232, but instead enrollment only declined 3

students. It is uncertain if this was a one-time deviation or a change in the future trend. A new demographic

study will be completed in December 2012, which should provide some answers. Currently, enrollment is

expected to decrease to 4,215 students in FY 2014, drop to 4,100 in FY 2015 and then remain flat at around

4,000 students from FY 2016 through 2019.

During FY 2011, the Board of Education and the New Trier Education Association, representing the District’s

faculty, agreed to a new two-year contract, increasing base salaries 1.2 percent in year one (FY 2012) and 1.3

percent in year two. In addition, an additional student attendance day was added to each year of the two year

agreement. With the additional day and the step increase provided in the salary schedule, the actual increase is

projected at 3.5 percent per year, which compares to an average increase of 5.8 percent per year in the previous

four-year agreement. Excluding the additional day, the average annual salary increase for the two-year

agreement is 2.95 percent. In addition, a high deductible health plan with initial District contributions to a Health

Savings Account was added - with a goal of inducing staff to move to a lower cost plan. Finally, the evaluation

system was modified to begin complying with the Illinois Education Reform Act, which deemphasizes the impact

of tenure in personnel decisions. A new agreement is expected to be negotiated in FY 2013.

During FY 2011, the Board of Education and the Physical Plant Association, representing the District’s physical

plant staff, agreed to a new four-year contract effective January 1, 2012, increasing total salaries 2.5 percent in

year one, 2.2 percent in year two, 2.7 percent in year three, and 2.7 percent in year four. These increases include

a step increase for a year of experience, which equals an average of 1.8 percent. The average increase in the

new agreement is 2.5 percent, which compares to an average annual salary increase of 4.5 percent in the

previous four-year agreement.

During FY 2012, the Board of Education and the Educational Support Association, representing the District’s

educational support staff, agreed to a new four-year contract effective July 1, 2012, which included total

compensation increases of less than 2.5% per year and continuing the Board’s goal of aligning compensation

increases with revenues and the CPI. Included in the agreement were concessions in both insurance and

retirement benefits. The average increase in the new agreement is approximately 2.5 percent, which compares to

an average annual salary increase of 5.2 percent in the previous four-year agreement.

Employee benefits continue to be a major concern for the Board of Education, particularly in light of the Health

Care Reform legislation that has recently been signed into law and upheld in Supreme Court, as noted above.

The District has benefited by the switch to the Blue Cross Blue Shield PPO network (effective January 1, 2005)

through our NIHIP cooperative. Since that change, we have experienced an average annual increase in

premiums of only 2.7% compared to the medical inflation trend of approximately 11-12% per year. This includes

a 3.3% increase in the PPO plans and no change to the HMO premiums in FY 2012-13. The compounded effects

of these savings compared to the national trend are significant. The District also evaluated new plan and claim

administrators for our dental insurance program. Based on this review, the Board approved moving to a new

dental insurance pool, resulting in a 10.7% decrease in premiums in FY 2006-07, followed by an average annual

increase in premiums of only 2.9% over the last six years, which compares to an inflation trend of approximately




14

8.0%. In FY13, our monthly dental premium rates are only $2 higher for single coverage and $5 higher for family

coverage compared to the FY06 rates.

With respect to facilities, the District underwent an extensive study of the facilities on both campuses from 2006

through the fall of 2009, at which time the administration recommended that the Board place a question on the

ballot for the February 2010 General Election seeking voter approval of funding for a $174 million

construction/renovation project at the Winnetka campus.

In February 2010, the referendum was defeated 63 percent to 37 percent. Since that time, the Board and the

Administration have discussed the next steps, ultimately deciding to reach out to the community to solicit input

about their vision for the future of New Trier. In the winter of 2010, a survey developed by ECRA, an independent

educational research firm, was distributed to the entire community. The majority of respondents said the facilities

project proposed in the referendum was too large, too expensive, and poorly timed given the state of the local and

national economy. Respondents also stated that future projects needed to be directly tied to the values of

promoting academic excellence and high-quality teaching.

From 2010 through 2012, the Facilities Steering Committee conducted studies about several issues related to

planning for future facilities projects. During the past two years, the Steering Committee and other groups have

reported to the Board the results of the Strategic Planning assessment, a Land-Building-Field Use study,

Evaluation of the 1-3 Model, and a study of ADA accessibility problems on both campuses. In addition, another

committee is researching the use of space, technology, and furniture in an ideal-sized classroom; this project is

entering its third year of study and there have been several reports to the Board about their findings.

The administration has identified additional Health Life Safety deficiencies that need to be addressed over the

next five years. This list focuses primarily on buildings or specific areas at the Winnetka and Northfield

Campuses that are unlikely to be replaced in a future capital project. Current estimates for this Health Life Safety

work total approximately $13.4 million. The District had nearly $1.8 million in Life Safety reserves to complete

work in the new amendments, which started in the summer of 2012. Other funding sources will be used to

complete the balance of the projects including the sale of Health Life Safety Bonds. The Health Life Safety

projects anticipated for the summers of 2013 and 2014 include renovating the emergency lighting and house

lights in the Gaffney Auditorium, abating the Tower Building water main asbestos insulation, and repairing the

tennis courts at the Northfield Campus. Another key initiative related to the facilities is an analysis of the District’s

operation and maintenance department. With the retirement of the District’s Director of Physical Plant Services in

June 2012, the administration and Board of Education made the decision to complete a review of the Physical

Plant Services Department. In the interim, the District’s Maintenance Managers have taken over the leadership of

the department during this transitional period. It is anticipated that decisions regarding future leadership of the

department as well as general operational changes to the department will be made in early 2013.

In March 2012, the Board of Education approved a resolution to refinance the District’s 2005 Series A Bonds.

The historically low interest rates coupled with the District’s Aaa bond rating, provided an opportunity in which the

District could generate present value savings of nearly $300,000. The District sold the bonds through a direct

private placement sale, which closes in September 2012 at an interest rate of 1.58%.

Having reached the end of the 2005-2010 Strategic Planning period, the District conducted an assessment of the

Strategic Plan in the spring and summer of 2011. The District has identified three major areas for continued work:

excellence in teaching and learning; healthy, balanced life; and safe and respectful learning community. These

three areas provide the overarching structure for our professional learning communities and for the work of school




15

leaders on specific topics. This approach acknowledges the important work from the Strategic Plan as well as

areas not considered by that plan for continued research and action.

Requests for Information

This financial report is designed to provide the District’s citizens, taxpayers, and creditors with a general overview

of the District’s finances and to demonstrate the District’s accountability for the money it receives. If you have

questions about this report, or need additional financial information, contact the Business Office, 7 Happ Road,

Northfield, Illinois 60093.

Basic Financial Statements

Government-Wide Financial Statements (GWFS)

16


Statement of Net AssetsJune 30, 2012

GovernmentalActivities

Assets

Current AssetsCash 25,353,406 $ Cash held in escrow 2,462,844 Investments 59,753,179 Receivables:

Property taxes, net 42,051,384 Replacement tax 203,238 Interest 301,419

Due from other government units 747,418 Total current assets 130,872,888

Noncurrent AssetsUnamortized bond issuance costs 93,442 Capital assets not being depreciated 6,375,501 Capital assets being depreciated, net 61,870,570

Total noncurrent assets 68,339,513

Total assets 199,212,401 $

(continued)

17


Statement of Net Assets (Continued)June 30, 2012

GovernmentalActivities

Liabilities and Net Assets

Current LiabilitiesAccounts payable 782,975 $ Accrued salaries and benefits 4,093,243 Compensated absences 80,756 Other current liabilities 59,118 Accrued interest 49,032 Unearned revenue 42,461,852 General obligation bonds 1,395,000 Capital appreciation bonds 1,531,739 Alternate revenue bonds 120,000 Capital leases 1,026,505

Total current liabilities 51,600,220

Long-Term Liabilities, net current maturitiesUnamortized premium on bonds 183,187 Deferred amount on refunding (102,816) General obligation bonds 15,325,000 Capital appreciation bonds 977,026 Alternate revenue bonds 1,785,000 Compensated absences 302,483 Capital leases 2,447,076 Net pension obligation 140,603 Other post employment benefits 3,207,083

Total long-term liabilities 24,264,642

Total liabilities 75,864,862 Commitments and Contingencies (Notes 10 and 11)

Net AssetsInvested in capital assets, net of related debt 48,507,317 Restricted for:

Operations and maintenance 1,772,590 Working cash 3,244,927 Transportation 998,376 Retirement benefits 1,558,116 Debt service 1,739,996 Capital projects 2,325,647

Unrestricted 63,200,570 Total net assets 123,347,539

Total liabilities and net assets 199,212,401 $

See Notes to Basic Financial Statements.

18


Statement of ActivitiesYear Ended June 30, 2012

Net (Expense)Revenue andChanges inNet Assets

OperatingCharges for Grants and Governmental

Functions/Programs Expenses Services Contributions ActivitiesGovernmental activities:

Instruction:Regular programs 45,214,157 $ 323,004 $ 8,242,697 $ (36,648,456) $ Special programs 11,680,319 - 4,518,271 (7,162,048) Other instructional programs 11,622,618 1,340,388 1,920,737 (8,361,493)

Support services:Pupils 11,826,419 - - (11,826,419) Instructional staff 4,502,180 - 68,337 (4,433,843) General administration 1,342,209 - - (1,342,209) School administration 1,329,133 - - (1,329,133) Business 1,584,665 400,000 - (1,184,665) Transportation 1,748,904 239,178 298,855 (1,210,871) Operations and maintenance 11,277,759 99,084 50,000 (11,128,675) Central 2,224,126 - - (2,224,126) Other support services 57,295 - - (57,295)

Community services 34,064 - - (34,064) Interest and charges 788,771 - - (788,771)

Total governmental activities 105,232,619 $ 2,401,654 $ 15,098,897 $ (87,732,068)

General revenues:Taxes:

Property taxes, general purposes 73,922,333 Property taxes, specific purposes 11,451,020 Property taxes, debt service 3,369,640 Corporate property replacement taxes 1,114,287

General state aid 878,264 Investment earnings and other 478,418

Total general revenues 91,213,962

Change in net assets 3,481,894 Net assets:

July 1, 2011 119,865,645

June 30, 2012 123,347,539 $


Program Revenue

Fund Financial Statements (FFS)

19


Balance SheetGovernmental FundsJune 30, 2012

Major Fund Nonmajor Total

General Governmental GovernmentalFund Funds Funds

Assets

Cash 23,353,381 $ 2,000,025 $ 25,353,406 $ Cash held in escrow 807,417 1,655,427 2,462,844 Investments 50,601,479 9,151,700 59,753,179 Receivables:

Property taxes, net 38,362,377 3,689,007 42,051,384 Replacement tax 203,238 - 203,238 Interest 255,254 46,165 301,419

Due from other governmental units 672,704 74,714 747,418

Total assets 114,255,850 $ 16,617,038 $ 130,872,888 $

Liabilities and Fund Balances

LiabilitiesAccounts payable 204,636 $ 578,339 $ 782,975 $ Accrued salaries and benefits 4,092,846 397 4,093,243 Compensated absences 30,756 - 30,756 Other current liabilities 59,118 - 59,118 Deferred revenues 39,449,731 3,799,507 43,249,238

Total liabilities 43,837,087 4,378,243 48,215,330

Fund balancesRestricted for:

Operations and maintenance 1,772,590 - 1,772,590 Working cash 3,229,951 - 3,229,951 Transportation - 998,376 998,376 Retirement benefits - 1,691,231 1,691,231 Debt service - 2,405,175 2,405,175 Capital projects 807,417 5,737,480 6,544,897

Committed for transportation - 1,406,533 1,406,533 Unassigned 64,608,805 - 64,608,805

Total fund balances 70,418,763 12,238,795 82,657,558

Total liabilities and fund balances 114,255,850 $ 16,617,038 $ 130,872,888 $


20


Reconciliation of the Governmental FundsBalance Sheet to the Statement of Net AssetsJune 30, 2012

Total fund balances - governmental funds 82,657,558 $

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

Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds. This amount is net of accumulated depreciation 68,246,071

Certain revenues that are deferred in the fund financial statements because they arenot available are recognized as revenue in the government-wide financial statements. 787,386

Premiums on bonds that are other financing sources in the fund financial statements are liabilities that are amortized over the life of the bonds in the government-widefinancial statements. (183,187)

Bond issuance costs that are an expenditure in the fund financial statements are an assetthat is amortized over the life of the bonds in the government-wide financial statements. 93,442

Deferred amounts on refunded debt that are other financing uses in the fund financial assets that are amortized over the life of the bonds in the government-wide financial statements. 102,816

Some liabilities reported in the statement of net assets do not require the use of currentfinancial resources and, therefore, are not reported as liabilities in governmental funds:

General obligation bonds (16,720,000) Capital appreciation bonds (2,508,765) Alternate revenue bonds (1,905,000) Capital lease (3,473,581) Compensated absences (352,483) Accrued interest (49,032) Net pension obligation (140,603) Other post employment benefits (3,207,083)

Net assets of governmental activities 123,347,539 $


21


Statement of Revenues, Expenditures and Changes in Fund BalancesGovernmental FundsYear Ended June 30, 2012

Major Fund Nonmajor TotalGeneral Governmental Governmental

Fund Funds Funds

Revenues: Property taxes 80,924,023 $ 7,818,970 $ 88,742,993 $ Corporate property replacement taxes 1,044,287 70,000 1,114,287 Charges for services 2,162,476 239,178 2,401,654 Unrestricted state aid 878,264 - 878,264 Restricted state aid 13,557,335 311,928 13,869,263 Restricted federal aid 1,288,044 - 1,288,044 Interest 513,779 62,556 576,335

Total revenues 100,368,208 8,502,632 108,870,840

Expenditures: Current:

Instruction:Regular programs 41,437,855 649,957 42,087,812 Special programs 9,668,809 345,322 10,014,131 Other instructional programs 10,483,342 344,387 10,827,729

Support services:Pupils 10,700,779 281,429 10,982,208 Instructional staff 3,940,915 249,498 4,190,413 General administration 1,240,664 14,883 1,255,547 School administration 1,178,236 57,816 1,236,052 Business 1,371,726 102,218 1,473,944 Transportation - 1,641,100 1,641,100 Operations and maintenance 9,453,328 796,940 10,250,268 Central 1,880,872 191,014 2,071,886 Other support services 46,835 6,391 53,226

Community services 31,984 - 31,984 Payments to other governments 922,158 - 922,158

Capital outlay 2,736,936 2,521,851 5,258,787 Debt service:

Principal - 3,354,734 3,354,734 Interest and charges - 667,945 667,945

Total expenditures 95,094,439 11,225,485 106,319,924

Excess (deficiency) of revenuesover (under) expenditures 5,273,769 (2,722,853) 2,550,916

Other financing sources (uses):Sale of capital assets 5,859 - 5,859 Lease proceeds 957,111 2,192,583 3,149,694 Transfer in 43,590 2,853,585 2,897,175 Transfer (out) (2,853,585) (43,590) (2,897,175)

Total other financing sources (uses) (1,847,025) 5,002,578 3,155,553

Net change in fund balances 3,426,744 2,279,725 5,706,469

Fund balances:July 1, 2011 66,992,019 9,959,070 76,951,089

June 30, 2012 70,418,763 $ 12,238,795 $ 82,657,558 $


22


Reconciliation of the Governmental FundsStatement of Revenues, Expenditures and Changes in Fund Balancesto the Statement of ActivitiesYear Ended June 30, 2012

Net change in fund balances—total governmental funds 5,706,469 $

Amounts reported for governmental activities in the statement of activities aredifferent because:

State grant revenues that are deferred in the fund financial statements because they arenot available are recognized as revenue in the government-wide financial statements.

Prior year deferred balance (943,713) Current year deferred balance 787,386

Governmental funds report capital outlays as expenditures paid while governmental activitiesreport depreciation expense to allocate those expenditures over the lives of the assets. This is the amount by which capital outlays exceeded depreciation expense in the current period.

Capital outlays 4,980,717 Depreciation expense (6,250,573)

In governmental funds, long-term debt is considered other financing sources, but in the statementof net assets, debt is reported as a liability. In the current period, proceeds were received from:

Capital lease (3,149,694)

Repayment of principal on long-term debt is an expenditure in the governmental funds,but the repayment reduces long-term liabilities in the statement of net assets.

Bond principal retirement 3,025,000 Capital lease principal retirement 329,734

Premium on bonds is recorded as other financing sources in the fund financial statements, but the premium is recorded as a liability in the Statement of Net Assets and is amortized over the life of the bonds. This is the amounts in the current period.

Amortization premium on bonds 28,548

Bond issuance costs are recorded as an expenditure in the fund financial statements, but the cost is recorded as an asset in the Statement of Net Assets and is amortized overthe life of the bonds. This is the amount in the current period.

Amortization bond issuance costs (14,556)

Deferred amounts on refunded debt are recorded as an other financing use in the fund financial statements, but the loss is recorded as a reduction of liabilities in the Statement of Net Assets and is amortized over the life of the bonds. This is the amount in the current period.

Amortization deferred amount on refunding (17,136)

Accreted interest on capital appreciation bonds is not reported in the governmental funds,however, it results in an increase in long-term liabilities on the Statement of Net Assets. (121,932)

Some expenses reported in the statement of activities do not require the use of currentfinancial resources and, therefore, are not reported as expenditures in governmentalfunds. This activity consists of:

Decrease in compensated absences 3,741 Decrease in accrued interest 4,250 Increase in net pension obligation (37,318) Increase in other post employment benefits (849,029)

Change in net assets of governmental activities 3,481,894 $


23


Statement of Fiduciary Assets and LiabilitiesAgency FundsJune 30, 2012

Assets

Cash and investments 3,897,839 $ Accounts receivable 409,981

Total assets 4,307,820 $

Liabilities

Due to student groups 2,209,344 $ Due to scholarship fund 1,935,954 Due to employees 162,522

Total liabilities 4,307,820 $


New Trier Township High School District 203 Notes to Basic Financial Statements

24

Note 1. Summary of Significant Accounting Policies

Nature of Activities New Trier Township High School District 203 (District) operates as a public school system governed by its Board of Education. The District is organized under The School Code of the State of Illinois, as amended. The District serves the communities of Glencoe, Kenilworth, Northfield, Wilmette, Winnetka, and portions of Glenview and Northbrook. The accounting policies of the District conform to accounting principles generally accepted in the United States of America as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the more significant accounting policies: Financial Reporting Entity As defined by generally accepted accounting principles established by GASB, the financial reporting entity consists of the primary government, as well as component units, which are legally separate organizations for which elected officials of the primary government are financially accountable. Financial accountability is defined as:

1) Appointment of a voting majority of the component unit’s board, and either (a) the ability to impose will by the primary government, or (b) the possibility that the component unit will provide a financial benefit to or impose a financial burden on the primary government; or

2) Fiscal dependency on the primary government. Based upon the application criteria, no component units have been included within the reporting entity. Basis of Presentation Government-Wide Financial Statements (GWFS): The government-wide Statement of Net Assets and Statement of Activities report the overall financial activity of the District. Eliminations have been made to minimize the double counting of internal activities of the District. The financial activities of the District consist of governmental activities, which are primarily supported by taxes and intergovernmental revenues. The Statement of Activities demonstrates the degree to which the direct expenses of a given function (i.e., instruction, support services, etc.) are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs (including fines and fees), and (b) grants and contributions that are restricted to meeting the operational requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Fiduciary funds are excluded from the government-wide financial statements. Fund Financial Statements (FFS): Separate financial statements are provided for governmental funds and fiduciary (agency) funds, even though the latter are excluded from the government-wide financial statements. The fund financial statements provide information about the District’s funds. The District has the following governmental funds - General, Special Revenue, Debt Service, and Capital Projects. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column.


25

Note 1. Summary of Significant Accounting Policies (Continued)

Basis of Presentation (Continued) The District administers the following major governmental fund: General Fund – This is the District’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. All remaining governmental funds are aggregated and reported as nonmajor governmental funds. Additionally, the District administers three agency funds that are used to account for assets held by the District in an agency capacity. These funds are held on behalf of the students and employees of the District. Measurement Focus and Basis of Accounting The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flow takes place. Nonexchange transactions, in which the District gives (or receives) value without directly receiving (or giving) equal value in exchange, include various taxes, state-shared revenues and various state, federal and local grants. On an accrual basis, revenues from taxes are recognized when the District has a legal claim to the resources. Grants, entitlements, state-shared revenues and similar items are recognized in the fiscal year in which 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 collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the District considers revenues to be available if they are collected within 60 days of the end of the current fiscal year. Significant revenue sources which are susceptible to accrual include property taxes, other taxes, grants, and interest. All other revenue sources are considered to be measurable and available only when cash is received. Expenditures generally are recorded when the liability is incurred, as under accrual accounting. General capital asset acquisitions are reported as expenditures in governmental funds. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the government-wide financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board (GASB), in which case the GASB prevails. The accrual basis of accounting is utilized by the fiduciary funds. Under this method, revenues are recognized when earned and expenses, are recognized at the time liabilities are incurred.


26


Measurement Focus and Basis of Accounting (Continued) Property taxes Property taxes receivable represents the 2011 property tax levy and was recognized as a receivable at the time they were levied. The 2011 tax levy was passed by the Board of Education on December 12, 2011, and attached as an enforceable lien on the property as of the preceding January 1. The taxes become due and collectible in March and September 2012, and are collected by the county collector, who in turn remits to the District its respective share. The District receives the remittances from the county treasurer approximately one month after collection. For all funds, the District recognizes the expected first installment in the current fiscal year as revenue with the second installment to be recognized in the following fiscal year. Accordingly, the second installment amount is reflected as deferred/unearned revenue this year. This methodology conforms to the measurable and available criteria for revenue recognition. An allowance for the estimated uncollectible taxes has been provided based on prior year collection experiences. The Property Tax Extension Limitation Law imposes mandatory property tax limitations on the ability of taxing districts in Illinois to raise revenues through unlimited property tax increases. The increase in property tax extensions is limited to the lesser of 5 percent or the percentage increase in the Consumer Price Index for all Urban Consumers. The limitation includes taxes levied for purposes without a statutory maximum rate. The amount of the limitation may be adjusted for new property added or annexed to the tax base or due to voter approved increases. Assets, Liabilities, and Net Assets or Equity Cash For purposes of reporting cash, all highly liquid investments with original maturities of three months or less when purchased are considered to be cash. Investments Investments are stated at fair value based on quoted market prices for same or similar investments. Interfund Activity Transfers – flows of assets (such as cash or goods) without equivalent flows of assets in return and without a requirement for repayment. In governmental funds, transfers are reported as other financing uses in the funds making transfers and as other financing sources in the funds receiving transfers.


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Assets, Liabilities, and Net Assets or Equity (Continued) Capital Assets Capital assets which include land, construction in progress, buildings, buildings and improvements, and equipment, are reported in the Statement of Net Assets. Capital assets are defined as assets with an initial invoice cost of more than $5,000, and an estimated useful life of greater than one year. Additions or improvements that significantly extend the useful life of an asset, or that significantly increase the capacity of an asset are capitalized. Expenditures for asset acquisitions and improvements are stated as capital outlay expenditures in the governmental funds. These assets have been valued at historical cost or estimated historical cost if purchased or constructed. Donated assets are recorded at their estimated fair market value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the assets’ lives are not capitalized. Depreciation of capital assets is recorded in the Statement of Activities with accumulated depreciation reflected in the Statement of Net Assets and is provided on the straight-line basis over the following estimated useful lives:

Buildings 50 - 100 years Building improvements 7 - 50 years Equipment 5 - 50 years Compensated Absences Under terms of employment, employees are granted sick leave and vacations in varying amounts. Only benefits considered to be vested are disclosed in these statements. All vested vacation and sick leave pay is accrued when incurred in the government-wide financial statements. A liability for these amounts is reported in the governmental funds only if they have matured, for example, as a result of employee resignations and retirements, or are payable with expendable available resources. Payments for vacation and sick leave will be made at rates in effect when the benefits are used. Accumulated vacation and sick leave liabilities are determined on the basis of current salary rates. Unearned/Deferred Revenue The District defers revenue recognition in connection with resources that have been received, but not yet earned. Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. The government – wide financial statements report unearned revenue for amounts that have been billed or collected but which they have not yet earned.


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Assets, Liabilities, and Net Assets or Equity (Continued) Long-Term Obligations In the government-wide financial statements, long-term debt and other long-term obligations, including compensated absences, are reported as liabilities in the Statement of Net Assets. Items such as premiums, discounts, bond issuance costs and gains or losses on bond sales are capitalized and amortized over the life of the related debt. In the fund financial statements, the face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Net Assets Invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation and reduced by outstanding balances for bonds and other debt that are attributable to the acquisition, construction, or improvement of those assets. Restricted net assets result when constraints placed on net asset use are either externally imposed by creditors, grantors, contributors, and the like, or imposed by law through constitutional provisions or enabling legislation. Unrestricted net assets consist of net assets that do not meet the criteria of the two preceding categories. When both restricted and unrestricted resources are available for use, it is the District’s policy to use restricted resources first to finance qualifying activities, then unrestricted resources as they are needed. Fund Balances Within the governmental fund types, the District’s fund balances are reported in one of the following classifications:

Nonspendable – includes amounts that cannot be spent because they are either: (a) not in spendable form; or (b) legally or contractually required to be maintained intact. As of June 30, 2012, the District has no items classified as nonspendable.

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 that can only be used for specific purposes pursuant to constraints imposed by formal action of the District’s highest level of decision-making authority. Committed amounts cannot be used for any other purpose unless the District removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. The District’s highest level of decision-making authority rests with the District’s Board of Education. The District passes formal resolutions to commit their fund balances.


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Assets, Liabilities, and Net Assets or Equity (Continued) Fund Balances (Continued)

Assigned – includes amounts that are constrained by the District’s intent to be used for specific purposes, but that are neither restricted nor committed. Intent is expressed by: (a) the District’s Board of Education itself; or (b) a body or official to which the Board of Education has delegated the authority to assign amounts to be used for specific purposes. The District’s Board of Education has delegated authority to the Associate Superintendent to assign amounts for a specific purpose within the General Fund. Within the other governmental fund types (special revenue, debt service, capital projects) resources are assigned in accordance with the established fund purpose and approved budget/appropriation. Residual fund balances in these fund types that are not restricted or committed are reported as assigned. As of June 30, 2012, the District has no assigned fund balance amounts. Unassigned – includes the residual fund balance that has not been restricted, committed, or assigned within the General Fund and unassigned deficit fund balances of other governmental funds.

It is the District’s policy to consider restricted resources to have been spent first when an expenditure is incurred for which both restricted and unrestricted (i.e. committed, assigned or unassigned fund balances) are available, followed by committed and then assigned fund balances. Unassigned amounts are used only after the other resources have been used. Under the State of Illinois School Code (School Code), the District is authorized to incur indebtedness and issue bonds and to levy a tax annually on all taxable property of the District in order to enable the District to have in its treasury at all times sufficient money to meet demands thereon. These funds may be lent to other District governmental funds in need, but may only be expended for other purposes upon the passage of a resolution by the Board of Education to abolish or abate the fund. At June 30, 2012, the District had fund balances of $3,229,951 that have been restricted pursuant to the School Code as working cash stabilization funds. Eliminations and Reclassifications In the process of aggregating data for the government-wide Statement of Activities, some amounts reported as interfund activity and interfund balances in the funds were eliminated or reclassified. Use of Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make 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 expenditures/expenses during the reporting period. Actual results could differ from these estimates.


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Note 2. Cash and Investments

Deposits State statutes authorize the District to make deposits in interest bearing depository accounts in federally insured and/or state chartered banks, savings and loan associations, and credit unions. As of June 30, 2012, the District had deposits, consisting of cash and deposits, with federally insured financial institutions of $87,562,251 with bank balances totaling $92,450,812. Custodial Credit Risk – Deposits. Custodial credit risk is the risk that in the event of a bank failure, the District’s deposits may not be returned to it. The District investment policy limits the exposure to custodial credit risk by requiring deposits in excess of FDIC insurable limits to be secured by collateral or private party insurance in the event of default or failure of the financial institution holding the funds. All of the District’s bank balances were insured or collateralized at June 30, 2012. Investments As of June 30, 2012, the District had the following investments, debt securities, and money market funds:

Fair Value Less than one 1 - 5

U.S. AgenciesFederal National Mortgage Association (FNMA) 1,999,375 $ -$ 1,999,375 $

Illinois School District Liquid Asset Fund (ISDLAF) 636 636 -

Total 2,000,011 $ 636 $ 1,999,375 $

Investment Maturities (in Years)

The District also has $2,845 in Illinois Funds and $1,902,161 in equity mutual funds. The ISDLAF and Money Market Funds are shown as maturing in less than one year because the weighted average maturity of the pool is less than one year. Interest Rate Risk. The District’s investment policy does not limit the District’s investment portfolio to specific maturities. The District’s investment policy limits investment maturities to four years as a means of managing its exposure to fair value losses arising from increasing interest rates. The policy also required the District’s investment portfolio to be sufficiently liquid to meet all of the operating requirements as they come due. ISDLAF is a not-for-profit investment trust formed pursuant to the Illinois Municipal Code and managed by a Board of Districts elected from the participating members. ISDLAF is not registered with the SEC as an investment company. Investments in ISDLAF are valued at ISDLAF share price, which is the price the investment could be sold for. The Illinois Funds Investment Pool is not registered with the SEC. The pool is sponsored by the Treasurer of the State of Illinois, in accordance with State law. The fair value of the position in the Pool is the same as the value of the Pool shares. Credit Risk. The Illinois School Code Section 105 ILCS 5/1E-165 authorize the District to invest in direct obligations of, or obligations guaranteed by, the United States Treasury or agencies of the United States, and short-term obligations of corporations organized in the United States with assets exceeding $500,000,000. The District is also authorized to invest in the ISDLAF and the Illinois Funds. The District restricted its investments to only those investments described above.


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Note 2. Cash and Investments (Continued)

As of June 30, 2012, the investments in the ISDLAF and Illinois Funds are rated AAAm by Standard & Poor’s. The U.S. Agencies are rated AAA by Standard & Poor’s and Aaa by Moody’s Investors Services. Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. The investment policy requires diversification of the investment portfolio to eliminate risk of loss resulting in over concentration in a specific maturity, issuer, or class of securities. Diversification strategies are as follows:

Up to 100% of investments can be in bonds, notes, certificates of indebtedness, treasury bills or other securities issued by the United States of America, its agencies and allowable instrumentalities.

Up to 90% of investments can be interest bearing savings accounts, interest bearing certificates

of deposit or interest bearing time deposits, any other investments constituting direct obligations of any bank as defined by the Illinois Banking Act, or certificates of deposit with federally insured institutions that are collateralized or insured at levels acceptable to the District in excess of $250,000 provided by the FDIC coverage limit.

Up to 50% in collateralized repurchase agreements, certain commercial paper, Illinois Public

Treasurer’s Investment Pool or the Illinois School District Liquid Asset Fund. More than 5 percent of the District’s investments are in FNMA (51.2%). The Illinois Funds and ISDLAF are not subject to concentration of credit risk. Custodial Credit Risk – Investments. For an investment, this is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The U.S Agencies are insured or held by the District or its agent in the District’s name. The Illinois Funds and ISDLAF are not subject to custodial credit risk. The District’s investment policy limits the exposure to investment custodial credit risk by requiring third party safekeeping for all investments.

Note 3. Property Taxes Receivables

Property taxes receivable, reduced for estimated uncollectible amounts as of June 30, 2012, were as follows:

Gross Tax EstimatedLevy Uncollectible Net

Receivable Allowance Receivable

General Fund 40,439,660 $ 2,077,283 $ 38,362,377 $ Nonmajor Governmental Funds 3,888,762 199,755 3,689,007

44,328,422 $ 2,277,038 $ 42,051,384 $


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Note 4. Capital Assets

Capital assets balances and activity for the year ended June 30, 2012, are as follows:

Balance BalanceJuly 1, 2011 Additions Retirements June 30, 2012

Governmental activities:Capital Assets, not being depreciated:

Land 5,170,483 $ -$ -$ 5,170,483 $ Construction in progress 659,713 1,205,018 659,713 1,205,018

Total capital assets notbeing depreciated 5,830,196 1,205,018 659,713 6,375,501

Capital Assets, being depreciated:Buildings 11,132,597 - - 11,132,597 Building improvements 93,420,435 1,918,181 - 95,338,616 Equipment 17,757,476 2,517,231 - 20,274,707

Total capital assets being depreciated 122,310,508 4,435,412 - 126,745,920

Less accumulated depreciation:Buildings 10,351,265 220,755 - 10,572,020 Building improvements 39,587,472 3,805,528 - 43,393,000 Equipment 8,686,040 2,224,290 - 10,910,330

Total accumulated depreciation 58,624,777 6,250,573 - 64,875,350

Total capital assets beingdepreciated, net 63,685,731 (1,815,161) - 61,870,570

Governmental activitiesCapital assets, net 69,515,927 $ (610,143) $ 659,713 $ 68,246,071 $

Depreciation expense was charged to governmental activities as follows: Instruction: 4,092,401 $

Support services 2,156,092 Community services 2,080

6,250,573 $


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Note 5. Long-Term Obligations

General long-term obligations as of June 30, 2012, and a summary of activity for the year then ended are as follows:

Outstanding Outstanding DueDebt as of Debt as of within

July 1, 2011 Additions Reductions June 30, 2012 one year

General obligation bonds 17,880,000 $ -$ 1,160,000 $ 16,720,000 $ 1,395,000 $ Capital appreciation bonds 4,136,833 121,932 1,750,000 2,508,765 1,531,739 Alternate revenue bonds 2,020,000 - 115,000 1,905,000 120,000 Premiums on bonds 211,735 - 28,548 183,187 - Deferred amount

on refundings (119,952) - (17,136) (102,816) - Capital leases * 653,621 3,149,694 329,734 3,473,581 1,026,505 Compensated absences * 396,816 517,591 531,168 383,239 80,756 Net pension obligation* 103,285 37,318 - 140,603 - OPEB obligation * 2,358,054 849,029 - 3,207,083 -

27,640,392 $ 4,675,564 $ 3,897,314 $ 28,418,642 $ 4,154,000 $

*The General and Municipal Retirement/Social Security Funds are used to liquidate these liabilities. Additions to capital appreciation bonds represent current year accreted interest. General Obligation Bonds Series 2004 In September 2004, the District issued $7,998,637 of general obligation bonds (capital appreciation) with principal payable in annual installments on December 1 of each year and interest at rates ranging from 3.69% - 3.88%, payable annually on December 1. The final principal and interest payment is due December 1, 2013. The bonds were used to finance fire prevention and life safety projects. General Obligation Bonds Series 2005A In April 2005, the District issued $7,030,000 of general obligation bonds with principal payable in annual installments on December 1 of each year and interest at rates ranging from 3.50% - 3.90%, payable semiannually on June 1 and December 1. The final principal and interest payment is due December 1, 2018. The bonds were used to refund outstanding debt. General Obligation Bonds Series 2006 In December 2006, the District issued $3,735,000 of general obligation bonds with principal payable in annual installments on December 1 of each year and interest at 4.00%, payable semiannually on June 1 and December 1. The final principal and interest payment is due on December 1, 2013. The bonds were used to finance fire prevention and life safety projects. General Obligation Bonds Series 2008A In December 2008, the District issued $3,840,000 of general obligation bonds with principal payable in annual installments on December 1 of each year and interest at rates ranging from 3.25% - 3.30%, payable semiannually on June 1 and December 1. The final principal and interest payment is due December 1, 2014. The bonds were used to finance fire prevention and life safety projects.


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Note 5. Long-Term Obligations (Continued)

General Obligation Bonds Series 2008B In December 2008, the District issued $2,245,000 of general obligation bonds (alternative revenue) with principal payable in annual installments on December 1 of each year and interest at rates ranging from 3.50% - 4.38%, payable semiannually on June 1 and December 1. The final principal and interest payment is due December 1, 2023. The bonds were used to finance the District’s shared costs to the special education facilities of North Suburban Special Education District 804. General Obligation Bonds Series 2010 In April 2010, the District issued $8,315,000 of general obligation bonds with principal payable in annual installments on December 1 of each year, beginning December 1, 2014, and interest at rates ranging from 2.50% - 3.25%, payable semiannually on June 1 and December 1. The final principal and interest payment is due December 1, 2018. The bonds are being used to finance fire prevention and life safety projects. Interest rates range from 2.50 percent to 4.00 percent on the outstanding general obligation bonds, 3.69 percent to 3.88 percent on outstanding capital appreciation bonds and 3.50 percent to 4.38 percent on outstanding alternative revenue bonds. As of June 30, 2012, the future annual debt service requirements on the outstanding debt are as follows:

Year Ending

June 30, Principal Interest Principal Interest

2013 1,395,000 $ 519,065 $ 1,155,398 $ 404,602 $ 2014 1,965,000 460,895 726,456 308,544 2015 2,510,000 386,307 - - 2016 2,590,000 309,129 - - 2017 2,665,000 229,579 - -

2018 - 2022 5,595,000 190,994 - - 2023 - 2024 - - - -

16,720,000 $ 2,095,969 $ 1,881,854 $ 713,146 $

General ObligationBonds

Capital AppreciationBonds

Principal Interest Principal Interest

2013 120,000 $ 73,680 $ 2,670,398 $ 997,347 $ 2014 125,000 69,699 2,816,456 839,138 2015 135,000 65,305 2,645,000 451,612 2016 140,000 60,317 2,730,000 369,446 2017 145,000 54,792 2,810,000 284,371

2018 - 2022 845,000 177,121 6,440,000 368,115 2023 - 2024 395,000 17,391 395,000 17,391

1,905,000 $ 518,305 $ 20,506,854 $ 3,327,420 $

Alternate RevenueBonds Total

Interest maturities include $626,911 in accreted interest on capital appreciation bonds, which is included in long-term debt on the statement of net assets.


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Note 5. Long-Term Obligations (Continued)

The District’s legal debt limitation of $375,437,138 based on 6.9 percent of the 2011 equalized assessed valuation of $5,441,117,938, less outstanding debt of $20,506,854 after deletion of accumulated accreted interest of $626,911 included in principal payable in the above capital appreciation bonds results in a legal debt margin of $354,930,284 as of June 30, 2012.

Note 6. Capital Lease Obligations

The District leases equipment under capital leases, which expire between August 2012 and June 2016. Monthly, quarterly and annual lease payments, including interest ranging from 1.275 percent to 5.739 percent, range from $2,897 to $774,058. The cost of the capital assets acquired under the capital leases is $1,569,551, accumulated depreciation is $1,119,842 and current year depreciation expense is $228,450, all of which is included with equipment. In addition the District has $2,462,844 in capital lease proceeds deposited in escrow and $537,156 in construction in progress. Minimum future lease payments under the capital lease together with the present value of the net minimum lease payments as of June 30, 2012 are as follows: Year ending June 30:

2013 1,078,628 $ 2014 941,262 2015 794,427 2016 774,058

Total minimum lease payments 3,588,375 Less amount representing interest 114,794 Present value of net minimum interest payments 3,473,581 Less current portion 1,026,505

Long-term portion 2,447,076 $

Note 7. Retirement Plan Commitments

Teachers’ Retirement System The District (employer) participates in the Teachers' Retirement System of the State of Illinois (TRS). TRS is a cost-sharing, multiple-employer defined benefit pension plan that was created by the Illinois legislature for the benefit of Illinois public school teachers employed outside the City of Chicago. The Illinois Pension Code outlines the benefit provisions of TRS, and amendments to the plan can be made only by legislative action, with the Governor's approval. The State of Illinois maintains primary responsibility for the funding of the plan, but contributions from participating employers and members are also required. The TRS Board of Trustees is responsible for the system's administration. TRS members include all active non-annuitants who are employed by a TRS-covered employer to provide services for which teacher certification is required. The active member contribution rate for the year ended June 30, 2012 was 9.4 percent of creditable earnings. The same contribution rate applies to members whose first contributing service is on or after January 1, 2011, the effective date of the benefit change contained in Public Act 96-0889. These contributions, which may be paid on behalf of the employees by the employer, are submitted to TRS by the employer. The active member contribution rate was also 9.4 percent for the years ended June 30, 2011 and 2010.


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Note 7. Retirement Plan Commitments (Continued)

The State of Illinois makes contributions directly to TRS on behalf of the District’s TRS-covered employee. On behalf contributions to TRS The State of Illinois makes employer pension contributions on behalf of the District. For the year ended June 30, 2012, State of Illinois contributions were based on 24.91 percent of creditable earnings not paid from federal funds, and the District recognized revenue and expenditures of $11,437,871 in pension contributions that the State of Illinois paid directly to TRS. For the years ended June 30, 2011 and June 30, 2010, the State of Illinois contribution rates as percentages of creditable earnings not paid from federal funds were 23.10 percent ($10,256,203) and 23.38 percent ($9,891,084), respectively. The District makes other types of employer contributions directly to TRS: 2.2 formula contributions Employers contribute 0.58 percent of total creditable earnings for the 2.2 formula change. This rate is specified by statute. Contributions for the year ended June 30, 2012 were $266,317. Contributions for the years ended June 30, 2011 and June 30, 2010, were $257,541 and $245,373, respectively. Federal and special trust fund contributions When TRS members are paid from federal and special trust funds administered by the District, there is a statutory requirement for the District to pay an employer pension contribution from those funds. Under a policy adopted by the TRS Board of Trustees that was first effective for the fiscal year ended June 30, 2006, employer contributions for employees paid from federal and special trust funds will be the same as the state contribution rate to TRS. For the year ended June 30, 2012, the employer pension contribution was 24.91 percent of salaries paid from federal and special trust funds. For the years ended June 30, 2011 and 2010, the employer contribution was 23.10 and 23.38 percent of salaries paid from federal and special trust funds, respectively. For the year ended June 30, 2012, June 30, 2011 and June 30, 2010, there were no salaries paid from federal and special trust funds. Early Retirement Option (ERO) The District is also required to make one-time employer contributions to TRS for members retiring under the Early Retirement Option (ERO). The payments vary depending on the age and salary of the member. The maximum employer contribution is 117.5 percent and applies when the member is age 55 at retirement. For the years ended June 30, 2012, June 30, 2011 and June 30, 2010, the District was not required to make any contributions to TRS under the ERO program. Salary increases over 6 percent and excess sick leave If an employer grants salary increases over 6 percent and those salaries are used to calculate a retiree’s final average salary, the employer makes a contribution to TRS. The contribution will cover the difference in actuarial cost of the benefit based on actual salary increases and the benefit based on salary increases of up to 6 percent. For the years ended June 30, 2012, June 30, 2011 and June 30, 2010, the District was required to pay no amounts to TRS for employer contributions due on salary increases in excess of 6 percent.


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If an employer grants sick leave days in excess of the normal annual allotment and those days are used as TRS service credit, the employer makes a contribution to TRS. The contribution is based on the number of excess sick leave days used as service credit, the highest salary used to calculate final average salary, and the TRS total normal cost rate (17.83 percent of salary during the year ended June 30, 2012, as recertified pursuant to Public Act 96-1511). For the years ended June 30, 2012, June 30, 2011 and June 30, 2010, the District was required to make no payments to TRS for sick leave days granted in the excess of the normal annual allotment. Further Information on TRS TRS financial information, an explanation of TRS benefits, and descriptions of member, employer and state funding requirements can be found in the TRS Comprehensive Annual Financial Report for the year ended June 30, 2011. The report for the year ended June 30, 2012 is expected to be available in late 2012. The reports may be obtained by writing to the Teachers’ Retirement System of the State of Illinois, P.O. Box 19253, 2815 West Washington Street, Springfield, IL 62794-9253. The most current report is also available on the TRS Web site at http://trs.illinois.gov. Teachers’ Health Insurance Security Fund The District (employer) participates in the Teachers’ Health Insurance Security (THIS) Fund, a cost-sharing, multiple-employer defined benefit postemployment healthcare plan that was established by the Illinois legislature for the benefit of Illinois public school teachers employed outside the City of Chicago. The THIS Fund provides medical, prescription, and behavioral health benefits, but does not provide vision, dental, or life insurance benefits to annuitants of the Teachers’ Retirement System (TRS). Annuitants may participate in the state-administered participating provider option plan or choose from several managed care options. The State Employees Group Insurance Act of 1971 (5 ILCS 375) outlines the benefit provisions of THIS Fund and amendments to the plan can be made only by legislative action with the Governor’s approval. The Illinois Department of Healthcare and Family Services (HFS) and the Illinois Department of Central Management Services (CMS) administer the plan with the cooperation of TRS. The director of HFS determines the rates and premiums for annuitants and dependent beneficiaries and establishes the cost-sharing parameters. Section 6.6 of the State Employees Group Insurance Act of 1971 requires all active contributors to the TRS who are not employees of the state make a contribution to THIS. The percentage of employer required contributions in the future will be determined by the Director of Healthcare and Family Services and will not exceed 105 percent of the percentage of salary actually required to be paid in the previous fiscal year. On behalf contributions to THIS Fund The State of Illinois makes employer retiree health insurance contributions on behalf of the District. State contributions are intended to match contributions to the THIS Fund from active members which were 0.88 percent of pay during the year ended June 30, 2012. State of Illinois contributions were $404,068, and the District recognized revenue and expenditures of this amount during the year. State contributions intended to match active member contributions during the years ended June 30, 2011 and 2010 were 0.88 percent and 0.84 percent of pay, respectively. State contributions on behalf of District employees were $390,712 and $355,368, respectively.


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Employer contributions to THIS The District also makes contributions to the THIS Fund. The employer THIS Fund contribution was 0.66 percent during the year ended June 30, 2012 and 2011, and 0.63 percent during the year ended June 30, 2010. For the year ended June 30, 2012, the District paid $303,051 to the THIS Fund. For the years ended June 30, 2011 and June 30, 2010, the District paid $293,034 and $266,526 to the THIS Fund, respectively, which was 100 percent of the required contribution. Further information on THIS Fund The publicly available financial report of the THIS Fund may be obtained by writing to the Department of Healthcare and Family Services, 201 S. Grand Ave., Springfield, IL 62763-3838. Illinois Municipal Retirement Plan Description. The District’s defined benefit pension plan for regular employees provides retirement and disability benefits, post retirement increases, and death benefits to plan members and beneficiaries. The District plan is affiliated with the Illinois Municipal Retirement Fund (IMRF), an agent multiple-employer plan. Benefit provisions are established by statute and may only be changed by the General Assembly of the State of Illinois. IMRF issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained on-line at www.imrf.org. Information related to the employee’s contributions and three-year trend information is on a fiscal year basis. The actuarial information and schedule of funding progress are on a calendar year basis as that is the year used by IMRF. Funding Policy. As set by statute, the District’s regular plan members are required to contribute 4.50 percent of their annual covered salary. The statute requires employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The employer contribution rates for calendar years ended December 31, 2012 and 2011 used by the District was 9.96 percent and 9.39 percent, respectively, of annual covered payroll. The District’s annual required contribution rate for calendar years ended December 31, 2012 and 2011 was 9.96 percent and 9.65 percent, respectively. The District also contributes for disability benefits, death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by statute. The required contributions for 2012 and 2011 were determined as part of the December 31, 2010 and 2009, actuarial valuations using the entry age normal actuarial cost method. The actuarial assumptions at December 31, 2010 and 2009, included (a) 7.5 percent investment rate of return (net of administrative and direct investment expenses), (b) projected salary increases of 4.0 percent a year, attributable to inflation, (c) additional projected salary increases ranging from 0.4 percent to 10.0 percent per year depending on age and service, attributable to seniority/merit, and (d) post retirement benefit increases of 3.0 percent annually. The actuarial value of the District’s regular plan assets was determined using techniques that spread the effects of short-term volatility in the market value of investments over a five-year period with a 20 percent corridor between the actuarial and market value of assets. The District’s regular plan’s unfunded actuarial accrued liability at December 31, 2010 and 2009 is being amortized as a level percentage of projected payroll on an open 30 year basis


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Annual Pension Cost. The following table shows the components of the District’s annual pension cost for the fiscal year ended June 30, 2012, the amount actually contributed to the plan, and changes in the District’s net pension obligation to the plan: Annual required contribution 1,315,636 $ Interest on net pension obligation 7,746 Adjustment to annual required contribution 29,572

Annual pension cost 1,352,954 Contributions made 1,315,636

Increase in net pension obligation 37,318 Net pension obligation beginning of year 103,285

Net pension obligation end of year 140,603 $

Three-Year Trend Information for the Regular Plan

AnnualYear Ended Pension Cost Percentage of APC Net Pension

June 30, (APC) Contributed Obligation

2012 1,352,954 $ 97 % 140,603 $ 2011 1,282,385 92 103,285 2010 1,003,347 100 -

Funded Status and Funding Progress. As of December 31, 2011, the most recent actuarial valuation date, the Regular plan was 84.06 percent funded. The actuarial accrued liability for benefits was $26,789,026 and the actuarial value of assets was $22,519,292, resulting in an underfunded actuarial accrued liability (UAAL) of $4,269,734. The covered payroll for calendar year 2011 (annual payroll of active employees covered by the plan) was $13,353,176 and the ratio of UAAL to covered payroll was 31.98 percent. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.

Note 8. Post Employment Healthcare Plan

Plan Description. New Trier Township High School District 203 (District) provides District paid pre- and post-Medicare medical coverage (including prescription drugs) to eligible retirees and their spouses and dependents. The current eligibility criteria for retirees is as follows: Illinois Municipal Retirement Fund (IMRF) employees are eligible at age 60 with 5 years of service or at any age with 30 years of service. Teachers’ Retirement System (TRS) employees are eligible for normal retirement at age 60 with 10 years of service or age 62 with 5 years of service. TRS employees are eligible for early retirement at age 55 with 20 years or service. This is a single-employer plan. The plan does not issue a publicly available financial report. Funding Policy. The required contribution is based on projected pay-as-you-go financing requirements. Administrative and Certified teachers receiving retiree healthcare benefits from the Teachers’ Retirement Insurance Program (TRIP) receive a fixed benefit from the District to help defray the retirees’ share of the TRIP premium. Non-certified employees may continue healthcare coverage after retirement through the District’s healthcare plan and receive a $2,000 fixed benefit from the District to defray the retiree’s share of the premium. For fiscal year 2012, the District contributed $371,075 to the plan.


40

Note 8. Post Employment Healthcare Plan (Continued)

Annual OPEB Cost and Net OPEB Obligation. The District’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the District’s annual OPEB cost for the year ended June 30, 2012, the amount actually contributed to the plan, and changes in the District’s net OPEB obligation to the plan: Annual required contribution 1,204,384 $ Interest on net OPEB obligation 94,322 Adjustment to annual required contribution (78,602)

Annual OPEB cost 1,220,104 Contributions made 371,075

Increase in net OPEB obligation 849,029 Net OPEB obligation beginning of year 2,358,054

Net OPEB obligation end of year 3,207,083 $

The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2012 and the two preceding years were as follows:

Percentage ofAnnual Annual OPEB Net OPEB

Year Ending OPEB Costs Cost Contributed Obligation

June 30, 2012 1,220,104 $ 30 % 3,207,083 $ June 30, 2011 1,105,816 30 2,358,054 June 30, 2010 929,852 46 1,584,932

Funded Status and Funding Progress. As of June 30, 2012 the most recent actuarial valuation date, the plan was not funded. The actuarial accrued liability for benefits was $8,857,699, and the actuarial value of assets was $0, resulting in an unfunded actuarial liability (UAAL) of $8,857,699. The covered payroll (annual payroll of active employees covered by the plan) was $57,748,678 and the ratio of the UAAL to the covered payroll was 15.34 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 the future employment, mortality, and the healthcare cost trend. Amounts determined reporting the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. In the June 30, 2012 actuarial valuation, the entry age actuarial cost method was used. The actuarial assumptions included (a) a 4.0 percent discount rate, (b) an annual healthcare cost trend rate of 8.0 percent initially, reduced by decrements to an ultimate rate of 6.0 percent, (c) and anticipated utilization rate of 100 percent. (a) Included an inflation component of 3.0 percent. The UAAL is being amortized as a level percentage of projected payroll on a 30 year open basis for non-certified staff and a 10 year open basis.


41

Note 8. Post Employment Healthcare Plan (Continued)

The schedule of funding progress, presented as required supplementary information following the notes to the financial statements presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.

Note 9. Risk Management

The District participates in the Northern Illinois Health Insurance Pool (NIHIP) for employee health benefits. The District participates in the Collective Liability Insurance Cooperative (CLIC) for general liability, property damage, workers’ compensation, employee fidelity, auto, boiler, and machinery coverage. CLIC and NIHIP are organizations of school districts in Illinois that have formed an association under the Illinois Intergovernmental Cooperation’s Statute to pool their risk management needs. The cooperative agreements provide that CLIC and NIHIP will be self-sustaining through member premiums. CLIC and NIHIP member premiums are also used to purchase commercial insurance for claims in excess of certain levels established by the pools. The District, along with members of CLIC and NIHIP, has a contractual obligation to fund any premium deficiency of CLIC and NIHIP attributable to a membership year during which it was a member. CLIC and NIHIP can assess supplemental premiums to fund these premium deficiencies. In the past three years, the District has not made supplemental payments to CLIC or NIHIP. Each member District of CLIC and NIHIP has a vote in the election of the pool’s Board of Directors. The District does not exercise any control over the activities of the pools beyond its elections of the Board of Directors for CLIC and NIHIP. Settled claims have not exceeded commercial insurance coverage during any of the past three years and there have been no significant reductions in insurance coverage from the prior year.

Note 10. Contingencies

The District is a defendant in various lawsuits. Although the outcome of these proceedings is not presently determinable, in the opinion of the District’s management through consultation with legal counsel, the resolution of these matters does not impose a material commitment of the District’s net assets at June 30, 2012.

Note 11. Commitments

As of June 30, 2012, the District is committed under construction contracts and purchase contracts of approximately $849,000.

Note 12. Related Party Transactions

The District participates in the North Suburban Special Educational District (NSSED) and North Suburban Education Region for Vocational Education (NSERVE). Transactions between the District and NSSED and NSERVE consist primarily of the District receiving federal grant funds as a subrecipient and payments of tuition costs from the District to NSSED. For the year end June 30, 2012, the District received $608,715 of federal grants and paid $857,840 in tuition costs to NSSED. For the year ended June 30, 2012, the District received $55,522 of federal grants from NSERVE. At June 30, 2012, the District’s interest in the joint ventures is not significant to the financial statements.


42

Note 13. Subsequent Event

On September 5, 2012, the District issued $4,475,000 of General Obligation School Refunding Bonds, Series 2012. The proceeds of $4,436,306 (including payment of issuance costs of $35,694) were used to purchase U.S. government securities. The U.S. government securities were deposited in an irrevocable trust with an escrow agent to provide for certain future debt service payments on refunded outstanding General Obligation Bonds, Series 2005, in the amount of $4,335,000, which mature between December 1, 2013 and 2018. The new bonds are payable in annual installments on December 1 of each year through December 1, 2018 and interest at a rate of 1.58%, payable semiannually on June 1 and December 1.

Note 14. Other Financial Disclosures (FFS Level Only)

Transfer to/from other funds Transfers for the year ended June 30, 2012 were as follows: Fund Transfers In Transfers Out

General Fund: Nonmajor governmental 43,590 $ 2,853,585 $

Nonmajor governmental:General Fund 2,853,585 43,590

2,897,175 $ 2,897,175 $

Transfers relate to capital lease principal and interest payments, which are funded by the General Fund but paid by the Debt Service Fund. Transfers are also used to reimburse the General Fund for costs paid on behalf of other funds. In addition, the General Fund transferred monies to fund the cost of capital projects in the current year. Budget Over Expenditures The Capital Projects Fund over expended its budget by $1,087,635 for the year ended June 30, 2012.

Note 15. Pronouncements Issued But Not Yet Adopted

GASB Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements, will be effective for the District beginning with its year ending June 30, 2013. The objective of this Statement is to improve financial reporting by addressing issues related to service concession arrangements (SCAs), which are a type of public-private or public-public partnership. This Statement establishes recognition, measurement, and disclosure requirements for SCAs for both transferors and governmental operators. GASB Statement No. 61, The Financial Reporting Entity: Omnibus—an amendment of GASB Statements No. 14 and No. 34, will be effective for the District beginning with its year ending June 30, 2013. The objective of this Statement is to improve financial reporting for a governmental financial reporting entity. The requirements of Statement No. 14, The Financial Reporting Entity, and the related financial reporting requirements of Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, were amended to better meet user needs and to address reporting entity issues that have arisen since the issuance of those Statements.


43

Note 15. Pronouncements Issued But Not Yet Adopted (Continued)

GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, will be effective for the District beginning with its year ending June 30, 2013. The objective of this Statement is to incorporate 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 does not conflict with or contradict GASB pronouncements:

1. Financial Accounting Standards Board (FASB) Statements and Interpretations 2. Accounting Principles Board Opinions 3. Accounting Research Bulletins of the American Institute of Certified Public Accountants’ (AICPA)

Committee on Accounting Procedure GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, will be effective for the District beginning with its year ending June 30, 2013. The objective of this statement is to improve financial reporting by standardizing the presentation of deferred outflows of resources and deferred inflows of resources and their effects on a government’s net position. It alleviates uncertainty about reporting those financial statement elements by providing guidance where none previously existed. GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, will be effective for the District beginning with its year ending June 30, 2014. This Statement establishes 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. This Statement also provides other financial reporting guidance related to the impact of the financial statement elements deferred outflows of resources and deferred inflows of resources, such as changes in the determination of the major fund calculations and limiting the use of the term deferred in financial statement presentations. GASB Statement No. 66, Technical Corrections – 2012 – an amendment of GASB Statements No. 10 and No. 62, will be effective for the District beginning with its year ending June 30, 2014. 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 and AICPA Pronouncements. This Statement amends Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues, by removing the provision that limits fund-based reporting of an entity’s risk financing activities to the general fund and the internal service fund type. This Statement also amends Statement 62 by modifying the specific guidance on accounting for (1) operating lease payments that vary from a straight-line basis, (2) the difference between the initial investment (purchase price) and the principal amount of a purchased loan or group of loans, and (3) servicing fees related to mortgage loans that are sold when the stated service fee rate differs significantly from a current (normal) servicing fee rate. GASB Statement No. 68, Accounting and Financial Reporting for Pensions, will be effective for the District beginning with its year ended June 30, 2015. This statement 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. This statement also enhances accountability and transparency through revised and new note disclosures and required supplementary information (RSI). Management has not determined the impact, if any, these Statements will have on the financial position and results of operations of the District.


44


Schedule of Funding ProgressIllinois Municipal Retirement Fund

ActuarialAccrued

Actuarial LiabilityActuarial Value of (AAL) Entry Unfunded Funded CoveredValuation Assets Age AAL Ratio Payroll

Date (a) (b) (b-a) (a/b) (c)

12/31/11 22,519,292 $ 26,789,026 $ 4,269,734 $ 84.06 % 13,353,176 $ 31.98 %12/31/10 23,407,383 26,926,447 3,519,064 86.93 13,260,316 26.54 12/31/09 23,304,836 26,074,470 2,769,634 89.38 12,759,163 21.71

Payroll((b-a)/c)

UAALas a

Percentageof Covered

On a market value basis, the actuarial value of assets as of December 31, 2011 is $21,205,813. On a market value basis, the funded ratio would be 79.16 percent.

45

New Trier Township High School District 203 Schedule of Funding ProgressPost Employment Healthcare Plan

ActuarialAccrued

Actuarial LiabilityActuarial Value of (AAL) Entry Unfunded Funded CoveredValuation Assets Age AAL Ratio Payroll

Date (a) (b) (b-a) (a/b) (c)

06/30/12 -$ 8,857,699 $ 8,857,699 $ - % 57,748,678 $ 15.34 %06/30/10 - 8,243,765 8,243,765 - 49,009,083 16.82 06/30/08 - 6,791,034 6,791,034 - 42,303,222 16.05

Percentageof Covered

Payroll((b-a)/c)

UnfundedAALas a

The District is only required to have an actuarial valuation done on a biennial basis and adopted GASB 45 in fiscal year 2009, using information from the June 30, 2008 valuation.

46


Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual General Fund - Budgetary BasisYear Ended June 30, 2012

Originaland FinalBudget Actual Variance

Revenues: Property taxes 80,920,000 $ 80,924,023 $ 4,023 $ Corporate property replacement taxes 980,000 1,044,287 64,287 Charges for services 2,280,000 2,162,476 (117,524) Unrestricted state aid 878,279 878,264 (15) Restricted state aid 1,078,000 1,715,396 637,396 Restricted federal aid 1,111,000 1,288,044 177,044 Interest 532,000 513,779 (18,221)

Total revenues 87,779,279 88,526,269 746,990


Instruction:Regular programs 35,008,378 33,253,237 1,755,141 Special programs 9,145,742 8,741,230 404,512 Other instructional programs 8,476,540 8,675,758 (199,218)

Support services:Pupils 10,269,570 10,700,779 (431,209) Instructional staff 4,229,360 3,940,915 288,445 General administration 1,347,099 1,240,664 106,435 School administration 1,161,734 1,178,236 (16,502) Business 1,495,608 1,371,726 123,882 Operations and maintenance 10,138,213 9,453,328 684,885 Central 1,955,715 1,880,872 74,843 Other support services 47,610 46,835 775

Community services 28,000 31,984 (3,984) Provision for contingencies 100,000 - 100,000 Capital outlay 2,858,000 2,736,936 121,064

Total expenditures 86,261,569 83,252,500 3,009,069

Excess of revenuesover expenditures 1,517,710 5,273,769 3,756,059

Other financing sources (uses):Sale of capital assets 10,000 5,859 (4,141) Lease proceeds - 957,111 957,111 Transfer in 50,000 43,590 (6,410) Transfer out (365,000) (2,853,585) (2,488,585)

Total other financing sources (uses) (305,000) (1,847,025) (1,542,025)

Change in fund balance 1,212,710 $ 3,426,744 2,214,034 $

Fund balance:July 1, 2011 66,992,019

June 30, 2012 70,418,763 $

See Note to Required Supplementary Information.

47

New Trier Township High School District 203 Note to Required Supplementary Information Note 1. Budgetary Basis of Accounting

Budgets and Budgetary Information

Annual budgets are adopted for all governmental fund types except the Student Activity Fund, an agency fund. These budgets are adopted on the accrual basis of accounting, which is the basis of accounting generally accepted in the United States of America. All budgets lapse at fiscal year-end. On or before July 1 of each year, the Superintendent is to submit for review by the Board of Education a proposed budget for the school year commencing on that date. After reviewing the proposed budget, the Board of Education holds public hearings and a final budget must be prepared and adopted no later than September 30. The appropriated budget is prepared by fund and by function. The General Fund budget is further detailed by account (Education, Operations and Maintenance, and Working Cash). The Board of Education may make transfers between functions within a fund not exceeding in the aggregate 10% of the total of such fund and may amend the total budget following the same procedures required to adopt the original budget. The legal level of budgetary control is at the fund level. No supplemental budget was required and there were no transfers between functions during the year. For budgetary purposes, the District does not recognize as revenues received the retirement contributions made by the State of Illinois to the Teachers’ Retirement System of the State of Illinois (TRS) and Teachers’ Health Insurance Security Fund of the State of Illinois (THIS) on behalf of the District as well as the related expenditures paid. The following schedule reconciles the revenues and expenditures on the budgetary basis with the amounts presented in accordance with the accounting principles generally accepted in the United States of America for the District’s General Fund only. Revenues received - budgetary basis 88,526,269 $ Unbudgeted retirement contributions made by the State 11,841,939

Revenues received - GAAP basis 100,368,208 $

Expenditures paid - budgetary basis 83,252,500 $ Unbudgeted retirement contributions made by the State 11,841,939

Expenditures paid - GAAP basis 95,094,439 $

Supplementary Information

48


Combining Balance SheetGeneral Fund, by AccountsJune 30, 2012

Operationsand

Educational Maintenance Working CashAccount Account Account Total

Assets

Cash 23,213,417 $ 111,179 $ 28,785 $ 23,353,381 $ Cash held in escrow 807,417 - - 807,417 Investments 42,101,479 5,300,000 3,200,000 50,601,479 Receivables:

Property taxes, net 35,043,885 3,318,492 - 38,362,377 Replacement tax - 203,238 - 203,238 Interest 212,377 26,735 16,142 255,254

Due from other governmental units 672,704 - - 672,704

Total assets 102,051,279 $ 8,959,644 $ 3,244,927 $ 114,255,850 $

Liabilities and Fund Balance

LiabilitiesAccounts payable 173,166 $ 31,470 $ -$ 204,636 $ Accrued salaries and benefits 4,072,622 20,224 - 4,092,846 Compensated absences 19,165 11,591 - 30,756 Other current liabilities 59,118 - - 59,118 Deferred revenues 36,097,739 3,337,016 14,976 39,449,731

Total liabilities 40,421,810 3,400,301 14,976 43,837,087

Fund balanceRestricted for:

Operations and maintenance - 1,772,590 - 1,772,590 Working cash - - 3,229,951 3,229,951 Capital projects 807,417 - - 807,417

Unassigned 60,822,052 3,786,753 - 64,608,805 Total fund balance 61,629,469 5,559,343 3,229,951 70,418,763

Total liabilities andfund balance 102,051,279 $ 8,959,644 $ 3,244,927 $ 114,255,850 $

49


Combining Statement of Revenues, Expenditures and Changes in Fund Balance -General Fund, by AccountsYear Ended June 30, 2012

Operationsand

Educational Maintenance Working CashAccount Account Account Total

Revenues: Property taxes 73,919,991 $ 7,004,032 $ -$ 80,924,023 $ Corporate property replacement taxes - 1,044,287 - 1,044,287 Charges for services 2,063,392 99,084 - 2,162,476 Unrestricted state aid 878,264 - - 878,264 Restricted state aid 13,507,335 50,000 - 13,557,335 Restricted federal aid 1,288,044 - - 1,288,044 Interest 436,542 31,791 45,446 513,779

Total revenues 92,093,568 8,229,194 45,446 100,368,208


Instruction:Regular programs 41,437,855 - - 41,437,855 Special programs 10,590,967 - - 10,590,967 Other instructional programs 10,483,342 - - 10,483,342

Support services:Pupils 10,700,779 - - 10,700,779 Instructional staff 3,940,915 - - 3,940,915 General administration 1,240,664 - - 1,240,664 School administration 1,178,236 - - 1,178,236 Business 1,371,726 - - 1,371,726 Operations and maintenance 3,556,000 5,897,328 - 9,453,328 Central 1,880,872 - - 1,880,872 Other support services 46,835 - - 46,835

Community services 31,984 - - 31,984 Capital outlay 1,854,422 882,514 - 2,736,936

Total expenditures 88,314,597 6,779,842 - 95,094,439

Excess of revenuesover expenditures 3,778,971 1,449,352 45,446 5,273,769

Other financing sources (uses):Sale of capital assets 5,859 - - 5,859 Lease proceeds 957,111 - - 957,111 Transfer in 43,590 - - 43,590 Transfer out (353,585) - (2,500,000) (2,853,585)

Total other financingsources (uses) 652,975 - (2,500,000) (1,847,025)

Change in fund balance 4,431,946 1,449,352 (2,454,554) 3,426,744

Fund balance:July 1, 2011 57,197,523 4,109,991 5,684,505 66,992,019

June 30, 2012 61,629,469 $ 5,559,343 $ 3,229,951 $ 70,418,763 $

50


Combining Schedule of Revenues, Expenditures and Changes in Fund BalanceBudget and Actual - Budgetary BasisGeneral Fund, by Accounts Year Ended June 30, 2012

Educational AccountBudget Actual Budget Actual

Revenues: Property taxes 73,921,000 $ 73,919,991 $ 6,999,000 $ 7,004,032 $ Corporate property

replacement taxes - - 980,000 1,044,287 Charges for services 2,160,000 2,063,392 120,000 99,084 Unrestricted state aid 878,279 878,264 - - Restricted state aid 1,078,000 1,665,396 - 50,000 Restricted federal aid 1,111,000 1,288,044 - - Interest 455,000 436,542 32,000 31,791

Total revenues 79,603,279 80,251,629 8,131,000 8,229,194


Instruction:Regular programs 35,008,378 33,253,237 - - Special programs 9,145,742 8,741,230 - - Other instructional programs 8,476,540 8,675,758 - -

Support services:Pupils 10,269,570 10,700,779 - - Instructional staff 4,229,360 3,940,915 - - General administration 1,347,099 1,240,664 - - School administration 1,161,734 1,178,236 - - Business 1,495,608 1,371,726 - - Operations and maintenance 3,851,713 3,556,000 6,286,500 5,897,328 Central 1,955,715 1,880,872 - - Other support services 47,610 46,835 - -

Community services 28,000 31,984 - - Provision for contingencies 100,000 - - - Capital outlay 1,974,872 1,854,422 883,128 882,514

Total expenditures 79,091,941 76,472,658 7,169,628 6,779,842

Excess of revenuesover expenditures 511,338 3,778,971 961,372 1,449,352

Other financing sources (uses):

Sale of capital assets 10,000 5,859 - - Lease proceeds - 957,111 - - Transfer in 50,000 43,590 - - Transfer out (365,000) (353,585) - -

Total other financingsources (uses) (305,000) 652,975 - -

Change in fund balance 206,338 $ 4,431,946 961,372 $ 1,449,352

Fund balance:July 1, 2011 57,197,523 4,109,991

June 30, 2012 61,629,469 $ 5,559,343 $

Maintenance AccountOperations and

51

Budget Actual Budget Actual

-$ -$ 80,920,000 $ 80,924,023 $

- - 980,000 1,044,287 - - 2,280,000 2,162,476 - - 878,279 878,264 - - 1,078,000 1,715,396 - - 1,111,000 1,288,044

45,000 45,446 532,000 513,779 45,000 45,446 87,779,279 88,526,269

- - 35,008,378 33,253,237 - - 9,145,742 8,741,230 - - 8,476,540 8,675,758

- - 10,269,570 10,700,779 - - 4,229,360 3,940,915 - - 1,347,099 1,240,664 - - 1,161,734 1,178,236 - - 1,495,608 1,371,726 - - 10,138,213 9,453,328 - - 1,955,715 1,880,872 - - 47,610 46,835 - - 28,000 31,984 - - 100,000 - - - 2,858,000 2,736,936 - - 86,261,569 83,252,500

45,000 45,446 1,517,710 5,273,769

- - 10,000 5,859 - - - 957,111 - - 50,000 43,590 - (2,500,000) (365,000) (2,853,585)

- (2,500,000) (305,000) (1,847,025)

45,000 $ (2,454,554) 1,212,710 $ 3,426,744

5,684,505 66,992,019

3,229,951 $ 70,418,763 $

Working Cash Account Total

52

Combining Nonmajor Governmental Funds

Transportation Fund – Accounts for resources accumulated and payments made for transportation costs of the District. Municipal Retirement/Social Security Fund – Accounts for resources accumulated and payments made for employer share of Illinois Municipal Retirement, Social Security, and Medicare. Debt Service Fund – Accounts for resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds. Capital Projects Fund – Accounts for resources accumulated and payments made for major construction projects of the District. Fire Prevention and Life Safety Fund – Accounts for resources accumulated and payments made for life safety projects performed by the District.

53


Combining Balance SheetNonmajor Governmental FundsJune 30, 2012

MunicipalRetirement/ Debt

Transportation Social Security ServiceFund Fund Fund

Assets

Cash 121,949 $ 87,962 $ 101,282 $ Cash held in escrow - - - Investments 2,300,000 1,600,000 2,300,000 Receivables:

Property taxes, net 567,736 1,537,409 1,583,862 Interest 11,602 8,071 11,602

Due from other governmental units 74,714 - -

Total assets 3,076,001 $ 3,233,442 $ 3,996,746 $

Liabilities and Fund Balances

LiabilitiesAccounts payable 18,784 $ -$ -$ Accrued salaries and benefits 397 - - Deferred revenue 651,911 1,542,211 1,591,571

Total liabilities 671,092 1,542,211 1,591,571

Fund balancesRestricted for:

Transportation 998,376 - - Retirement benefits - 1,691,231 - Debt service - - 2,405,175 Capital projects - - -

Committed for transportation 1,406,533 - - Total fund balances 2,404,909 1,691,231 2,405,175

Total liabilitiesand fund balances 3,076,001 $ 3,233,442 $ 3,996,746 $

Special Revenue Funds

54

TotalCapital Fire Prevention NonmajorProjects and Life Safety Governmental

Fund Fund Funds

866,037 $ 822,795 $ 2,000,025 $ 1,655,427 - 1,655,427 2,000,000 951,700 9,151,700

- - 3,689,007 10,089 4,801 46,165

- - 74,714

4,531,553 $ 1,779,296 $ 16,617,038 $

550,479 $ 9,076 $ 578,339 $ - - 397

9,360 4,454 3,799,507 559,839 13,530 4,378,243

- - 998,376 - - 1,691,231 - - 2,405,175

3,971,714 1,765,766 5,737,480 - - 1,406,533

3,971,714 1,765,766 12,238,795

4,531,553 $ 1,779,296 $ 16,617,038 $

Capital Project Funds

55


Combining Statement of Revenues, Expenditures and Changes in Fund BalancesNonmajor Governmental FundsYear Ended June 30, 2012

MunicipalRetirement/ Debt

Transportation Social Security ServiceFund Fund Fund

Revenues:Property taxes 1,319,638 $ 3,129,692 $ 3,369,640 $ Corporate property replacement taxes - 70,000 - Charges for services 239,178 - - Restricted state aid 311,928 - - Interest 20,322 13,254 14,417

Total revenues 1,891,066 3,212,946 3,384,057

Expenditures:Current:

Instruction:Regular programs - 649,957 - Special programs - 345,322 - Other instructional programs - 344,387 -

Support services:Pupils - 281,429 - Instructional staff - 249,498 - General administration - 14,883 - School administration - 57,816 - Business - 102,218 - Transportation 1,629,001 12,099 - Operations and maintenance 796,940 - Central - 191,014 - Other support services - 6,391 -

Debt Service:Principal - - 3,354,734 Interest and charges - - 667,945

Capital outlay - - - Total expenditures 1,629,001 3,051,954 4,022,679

Excess (deficiency) of revenuesover (under) expenditures 262,065 160,992 (638,622)

Other financing sources (uses):Lease proceeds - - - Transfer in - - 353,585 Transfer (out) (43,590) - -

Total other financingsources (uses) (43,590) - 353,585

Change in fund balances 218,475 160,992 (285,037)

Fund balances:July 1, 2011 2,186,434 1,530,239 2,690,212

June 30, 2012 2,404,909 $ 1,691,231 $ 2,405,175 $

Special Revenue Funds

56

TotalCapital Fire Prevention NonmajorProjects and Life Safety Governmental

Fund Fund Funds

-$ -$ 7,818,970 $ - - 70,000 - - 239,178 - - 311,928

3,440 11,123 62,556 3,440 11,123 8,502,632

- - 649,957 - - 345,322 - - 344,387

- - 281,429 - - 249,498 - - 14,883 - - 57,816 - - 102,218 - - 1,641,100 - - 796,940 - - 191,014 - - 6,391

- - 3,354,734 - - 667,945

1,087,635 1,434,216 2,521,851 1,087,635 1,434,216 11,225,485

(1,084,195) (1,423,093) (2,722,853)

2,192,583 - 2,192,583 2,500,000 - 2,853,585

- - (43,590)

4,692,583 - 5,002,578

3,608,388 (1,423,093) 2,279,725

363,326 3,188,859 9,959,070

3,971,714 $ 1,765,766 $ 12,238,795 $

Capital Project Funds

57


Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and ActualTransportation FundJune 30, 2012

Originaland Final Budget Actual Variance

Revenues:Property taxes 1,318,000 $ 1,319,638 $ 1,638 $ Charges for services 255,000 239,178 (15,822) Restricted state aid 263,400 311,928 48,528 Interest 16,000 20,322 4,322

Total revenues 1,852,400 1,891,066 38,666

Expenditures:Current:

Support services:Transportation 1,800,677 1,629,001 171,676

Provision for contingencies 60,000 - 60,000 Total expenditures 1,860,677 1,629,001 231,676

Excess (deficiency) of revenuesover (under) expenditures (8,277) 262,065 270,342

Other financing uses:Transfer out (50,000) (43,590) 6,410

Change in fund balance (58,277) $ 218,475 276,752 $

Fund balance: July 1, 2011 2,186,434

June 30, 2012 2,404,909 $

58


Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and ActualMunicipal Retirement/Social Security FundYear Ended June 30, 2012

Originaland FinalBudget Actual Variance

Revenues:Property taxes 3,096,000 $ 3,129,692 $ 33,692 $ Corporate property replacement taxes 70,000 70,000 - Interest 12,000 13,254 1,254

Total revenues 3,178,000 3,212,946 34,946


Instruction:Regular programs 789,276 649,957 139,319 Special programs 319,700 345,322 (25,622) Other instructional programs 351,500 344,387 7,113

Support services:Pupils 279,300 281,429 (2,129) Instructional staff 245,600 249,498 (3,898) General administration 14,900 14,883 17 School administration 54,400 57,816 (3,416) Business 102,100 102,218 (118) Transportation 12,300 12,099 201 Operations and maintenance 805,324 796,940 8,384 Central 187,300 191,014 (3,714) Other support services 6,400 6,391 9

Total expenditures 3,168,100 3,051,954 116,146

Change in fund balance 9,900 $ 160,992 151,092 $


June 30, 2012 1,691,231 $

59


Schedule of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual Debt Service FundYear Ended June 30, 2012

Original

and Final Budget Actual Variance

Revenues:Property taxes 3,358,000 $ 3,369,640 $ 11,640 $ Interest 21,000 14,417 (6,583)

Total revenues 3,379,000 3,384,057 5,057

Expenditures:Debt service:

Principal 3,339,000 3,354,734 (15,734) Interest and charges 701,760 667,945 33,815

Total expenditures 4,040,760 4,022,679 18,081

Deficiency of revenuesunder expenditures (661,760) (638,622) 23,138

Other financing source:Transfer in 365,000 353,585 (11,415)

Change in fund balance (296,760) $ (285,037) 11,723 $

Fund balance: July 1, 2011 2,690,212

June 30, 2012 2,405,175 $

60


Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and ActualCapital Projects FundYear Ended June 30, 2012

Originaland Final Budget Actual Variance

Revenues:Interest 2,900 $ 3,440 $ 540 $

Expenditures:Capital outlay - 1,087,635 (1,087,635)

Excess (deficiency) of revenuesover (under) expenditures 2,900 (1,084,195) (1,087,095)

Other financing sources:Lease proceeds - 2,192,583 2,192,583 Transfer in - 2,500,000 2,500,000

Total other financingsources - 4,692,583 4,692,583

Change in fund balance 2,900 $ 3,608,388 3,605,488 $

Fund balance:July 1, 2011 363,326

June 30, 2012 3,971,714 $

61


Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and ActualFire Prevention and Life Safety FundYear Ended June 30, 2012

Original

and Final Budget Actual Variance

Revenues:Interest 18,000 $ 11,123 $ (6,877) $

Expenditures:Capital outlay 2,000,000 1,434,216 565,784

Change in fund balance (1,982,000) $ (1,423,093) 558,907 $


June 30, 2012 1,765,766 $

62


Statement of Changes in Assets and LiabilitiesAgency FundsYear Ended June 30, 2012

Balance at Balance atJuly 1, 2011 Additions Deletions June 30, 2012

Agency Funds:Assets:

Cash and investments 3,650,963 $ 11,949,194 $ 11,702,318 $ 3,897,839 $ Accounts receivable 427,065 1,325,726 1,342,810 409,981

Total assets 4,078,028 $ 13,274,920 $ 13,045,128 $ 4,307,820 $

Liabilities: Due to student groups 2,076,421 $ 12,997,171 $ 12,864,248 $ 2,209,344 $ Due to scholarship fund 1,829,705 277,749 171,500 1,935,954 Due to employees 171,902 - 9,380 162,522

Total liabilities 4,078,028 $ 13,274,920 $ 13,045,128 $ 4,307,820 $

63


Schedule of Debt Service RequirementsJune 30, 2012

YearEnding

June 30, Principal Interest Total

2013 2,670,398 $ 997,347 $ 3,667,745 $ 2014 2,816,456 839,138 3,655,594 2015 2,645,000 451,612 3,096,612 2016 2,730,000 369,446 3,099,446 2017 2,810,000 284,371 3,094,371 2018 2,905,000 190,955 3,095,955 2019 3,005,000 91,323 3,096,323 2020 170,000 35,849 205,849 2021 175,000 28,775 203,775 2022 185,000 21,213 206,213 2023 195,000 13,016 208,016 2024 200,000 4,375 204,375

20,506,854 3,327,420 23,834,274 Accumulated accreted interest 626,911 (626,911) -

21,133,765 $ 2,700,509 $ 23,834,274 $

Capital Appreciation Bonds

Series 2004, dated September 15, 2004, due serially on December 1 with interest 2013 1,155,398 $ 404,602 $ 1,560,000 $ payable on December 1 of each year 2014 726,456 308,544 1,035,000

Interest rates 3.69% to 3.88% 1,881,854 713,146 2,595,000 Paying agent: Bank of New York Mellon 626,911 (626,911) - Accumulated accreted interest 2,508,765 $ 86,235 $ 2,595,000 $

General Obligation BondsSeries 2005A, dated April 15, 2005

due serially on December 1 with interest 2013 640,000 $ 173,812 $ 813,812 $ payable on December 1 and June 1 of 2014 660,000 151,062 811,062 each year 2015 685,000 127,182 812,182

Interest rates 3.50% to 3.90% 2016 710,000 101,717 811,717 Paying agent: Bank of New York Mellon 2017 735,000 74,617 809,617

2018 765,000 45,926 810,926 2019 800,000 15,600 815,600

4,995,000 $ 689,916 $ 5,684,916 $

(continued)

64


Schedule of Debt Service Requirements (Continued)June 30, 2012

YearEnding


General Obligation Bonds, Limited TaxSeries 2006, dated December 1, 2006,

due serially on December 1 with interest payable on December 1 and June 1 of 2013 175,000 $ 14,500 $ 189,500 $ each year 2014 275,000 5,500 280,500

Interest rate of 4.00%Paying agent: Bank of New York Mellon 450,000 $ 20,000 $ 470,000 $

General Obligation Bonds, Limited TaxSeries 2008A, dated December 29, 2008,

due serially on December 1 with interest 2013 580,000 $ 87,965 $ 667,965 $ payable on December 1 and June 1 of 2014 1,030,000 61,545 1,091,545 each year 2015 1,350,000 22,275 1,372,275

Interest rates 3.25% to 3.30%Paying agent: Bank of New York Mellon 2,960,000 $ 171,785 $ 3,131,785 $

General Obligation Bonds, Alternate RevenueSeries 2008B, dated December 29, 2008

due serially on December 1 with interest 2013 120,000 $ 73,680 $ 193,680 $ payable on December 1 and June 1 of 2014 125,000 69,699 194,699 each year 2015 135,000 65,305 200,305

Interest rates 3.50% to 4.38% 2016 140,000 60,317 200,317 Paying agent: Bank of New York Mellon 2017 145,000 54,792 199,792

2018 155,000 48,792 203,792 2019 160,000 42,492 202,492 2020 170,000 35,849 205,849 2021 175,000 28,775 203,775 2022 185,000 21,213 206,213 2023 195,000 13,016 208,016 2024 200,000 4,375 204,375

1,905,000 $ 518,305 $ 2,423,305 $

(continued)

65


Schedule of Debt Service Requirements (Continued)June 30, 2012

YearEnding


General Obligation Bonds, Limited TaxSeries 2010, dated April 19, 2010,

due serially on December 1 with interest 2013 -$ 242,788 $ 242,788 $ payable on December 1 and June 1 of 2014 - 242,788 242,788 each year 2015 475,000 236,850 711,850

Interest rates 2.50% to 3.25% 2016 1,880,000 207,412 2,087,412 Paying agent: Bank of New York Mellon 2017 1,930,000 154,962 2,084,962

2018 1,985,000 96,237 2,081,237 2019 2,045,000 33,231 2,078,231

8,315,000 $ 1,214,268 $ 9,529,268 $

66

Statistical Section

Financial Trends Information 67 – 75 These schedules contain trend information to help the reader understand how the District's financial performance and well-being have changed over time. Revenue Capacity Information 76 – 79 These schedules contain information to help the reader assess the factors affecting the District's ability to generate its property and sales taxes. Debt Capacity Information 80 – 82 These schedules present information to help the reader assess the affordability of the District's current levels of outstanding debt and the District's ability to issue additional debt in the future. Demographic and Economic Information 83 – 84 These schedules offer demographic and economic indicators to help the reader understand the environment within which the District's financial activities take place and to help make comparisons over time and with other governments. Operating Information 85 – 87 These schedules contain information about the District's operations and resources to help the reader understand how the District's financial information relates to the services the District provides and the activities it performs.

67


Net Assets by Component

Last Ten Fiscal Years

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Governmental activities

Invested in capital assets

net of related debt 34,306,303 $ 38,418,974 $ 40,333,674 $ 44,952,702 $ 47,498,535 $ 47,065,517 $ 48,937,550 $ 48,565,993 $ 4,081,218 $ 48,507,317 $

Restricted 2,530,152 3,300,801 2,964,726 2,744,815 3,306,397 3,352,594 5,618,032 11,825,296 11,734,201 11,639,652

Unrestricted 21,360,503 31,419,406 28,536,195 37,440,674 42,985,864 49,911,435 52,964,377 55,178,016 104,050,226 63,200,570

Total primary government net assets 58,196,958 $ 73,139,181 $ 71,834,595 $ 85,138,191 $ 93,790,796 $ 100,329,546 $ 107,519,959 $ 115,569,305 $ 119,865,645 $ 123,347,539 $

Data Source: District's Annual Financial Statements.

68


Expenses, Program Revenues, and Net (Expense) RevenueLast Ten Fiscal Years

2003 2004 2005 2006

ExpensesGovernmental activities:

Instruction:Regular programs 26,436,940 $ 27,110,644 $ 28,804,145 $ 29,654,956 $ Special programs 6,334,552 6,727,435 7,830,856 8,193,923 Other instructional programs 5,034,812 5,533,119 5,532,104 5,950,300

Support services:Pupils 6,520,642 6,953,394 7,235,655 7,831,133 Instructional staff 4,208,166 4,627,470 4,719,861 4,712,913 General administration 1,949,230 2,158,318 2,063,635 2,214,067 School administration 1,494,023 1,659,371 1,600,831 1,683,535 Business 2,228,662 2,438,406 2,550,795 2,712,732 Transportation 1,098,529 1,403,959 1,563,809 1,552,472 Operations and maintenance 9,353,372 9,630,313 9,796,704 11,314,124 Central 1,129,224 857,431 754,217 984,497 Other support services 26,439 50,973 44,511 30,634

Community services 41,918 44,402 51,903 40,617 Interest and charges 1,196,060 1,004,412 1,027,037 938,850

Total primary government expenses 67,052,569 70,199,647 73,576,063 77,814,753

Program RevenuesGovernmental activities:

Charges for services:Regular programs 6,800 $ 20,900 $ 40,150 $ 73,200 $ Other instructional programs 1,153,361 1,298,688 1,352,506 1,530,782 Business 1,143,319 1,242,428 1,449,156 1,567,801 Transportation - 176,829 201,829 222,760 Operations and maintenance 352,237 342,086 369,907 335,379

Operating grants and contributions 5,805,151 6,377,755 6,244,845 4,935,807 Capital grants and contributions 78,752 434,011 408,270 177,918

Total primary government program revenues 8,539,620 9,892,697 10,066,663 8,843,647

Net (Expense)/RevenueTotal primary government net expense (58,512,949) $ (60,306,950) $ (63,509,400) $ (68,971,106) $


69

2007 2008 2009 2010 2011 2012

32,255,924 $ 36,022,054 $ 38,625,635 $ 39,706,243 $ 43,052,409 $ 45,214,157 $ 8,444,017 8,850,219 9,459,902 12,547,349 10,977,160 11,680,319 6,462,306 6,677,930 7,496,607 10,581,544 10,908,414 11,622,618

7,960,897 8,720,056 9,383,606 9,943,834 11,181,090 11,826,419 4,619,762 5,406,499 5,952,013 5,960,284 4,496,985 4,502,180 2,177,769 2,269,730 1,291,270 1,319,874 1,501,108 1,342,209 1,821,042 1,725,196 1,449,672 1,544,882 1,267,863 1,329,133 3,086,647 3,200,215 2,931,879 3,676,600 3,148,329 1,584,665 1,776,158 1,834,256 1,967,347 1,560,927 1,745,502 1,748,904

12,267,086 12,978,543 11,473,204 13,009,018 10,925,197 11,277,759 923,296 1,250,343 2,156,615 1,941,277 2,211,297 2,224,126 33,813 32,085 43,739 47,968 54,664 57,295 22,607 27,767 32,079 24,726 14,490 34,064

750,774 874,262 745,620 868,176 930,031 788,771

82,602,098 89,869,155 93,009,188 102,732,702 102,414,539 105,232,619

171,551 $ 181,247 $ 227,851 $ 375,039 $ 295,807 $ 323,004 $ 1,330,926 1,297,229 1,404,067 1,456,356 1,279,897 1,340,388 1,677,768 1,721,017 1,794,598 1,796,926 1,673,557 400,000

193,312 226,858 242,976 244,772 253,112 239,178 399,724 306,244 405,000 125,711 96,674 99,084

6,308,331 8,820,633 10,985,987 14,444,292 14,513,743 15,098,897 552,932 171,296 121,363 - - -

10,634,544 12,724,524 15,181,842 18,443,096 18,112,790 17,500,551

(71,967,554) $ (77,144,631) $ (77,827,346) $ (84,289,606) $ (84,301,749) $ (87,732,068) $

70


General Revenues and Total Change in Net Assets Last Ten Fiscal Years

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Net (Expense)/RevenueTotal primary government net expense (58,512,949) $ (60,306,950) $ (63,509,400) $ (68,971,106) $ (71,967,554) $ (77,144,631) $ (77,827,346) $ (84,289,606) $ (84,301,749) $ (87,732,068) $

General Revenues and Other Changes in Net AssetsGovernmental activities:

Taxes:Property taxes, general purposes 46,652,999 $ 65,695,752 $ 47,328,094 $ 60,468,679 $ 60,872,687 $ 65,487,749 $ 68,561,126 $ 76,225,137 $ 72,131,460 $ 73,922,333 $ Property taxes, specific purposes 1,837,364 2,844,525 8,516,636 10,883,221 10,498,607 9,976,943 9,367,723 10,112,168 10,439,763 11,451,020 Property taxes, debt service 3,354,667 4,242,143 3,331,578 3,684,995 3,424,985 3,407,326 3,185,585 3,431,233 3,293,695 3,369,640 Corporate property replacement taxes 648,994 737,607 892,547 1,131,268 1,234,228 1,319,849 1,154,566 934,034 1,211,273 1,114,287

State aid-formula grants 999,259 1,079,875 998,929 994,964 887,240 896,606 706,058 743,265 918,577 878,264 Investment earnings 890,080 574,328 1,018,997 2,152,097 3,321,441 2,469,187 2,042,701 893,115 603,321 478,418 Miscellaneous 286,548 74,943 118,033 2,959,478 380,971 125,721 - - - -

Total primary government 54,669,911 75,249,173 62,204,814 82,274,702 80,620,159 83,683,381 85,017,759 92,338,952 88,598,089 91,213,962

Change in Net AssetsTotal primary government (3,843,038) $ 14,942,223 $ (1,304,586) $ 13,303,596 $ 8,652,605 $ 6,538,750 $ 7,190,413 $ 8,049,346 $ 4,296,340 $ 3,481,894 $


71


Fund Balances, Governmental FundsLast Ten Fiscal Years

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

General FundRestricted -$ -$ -$ -$ -$ -$ -$ 5,624,533 $ 6,106,827 $ 5,809,958 $ Unassigned - - - - - - - 56,524,251 60,885,192 64,608,805 Reserved - - - - - - - - - - Unreserved 16,777,635 26,700,376 23,386,593 28,690,778 33,190,170 38,627,733 51,730,819 - - -

Total General Fund 16,777,635 $ 26,700,376 $ 23,386,593 $ 28,690,778 $ 33,190,170 $ 38,627,733 $ 51,730,819 $ 62,148,784 $ 66,992,019 $ 70,418,763 $

All Other Governmental FundsRestricted -$ -$ -$ -$ -$ -$ -$ 13,927,125 $ 8,791,715 $ 10,832,262 $ Committed - - - - - - - 914,243 1,167,355 1,406,533 Unreserved, reported in:

Special revenue funds 8,194,716 7,444,306 7,486,943 10,952,902 13,476,495 15,144,599 7,525,826 - - - Debt service fund 1,474,859 2,085,656 1,966,970 1,936,952 2,203,013 2,054,899 2,025,520 - - - Capital project funds - (260,000) 5,737,843 1,126,537 1,965,020 81,288 4,593,029 - - -

Total all other governmental funds 9,669,575 $ 9,269,962 $ 15,191,756 $ 14,016,391 $ 17,644,528 $ 17,280,786 $ 14,144,375 $ 14,841,368 $ 9,959,070 $ 12,238,795 $


Note: 2003 - 2008 Operations and Maintenance Fund is included under Special Revenue.

Note: 2003 - 2009 Working Cash Fund is included under Special Revenue.

Pre-GASB 54 GASB 54

Note: The District implemented GASB 54 as of July 1, 2010. The fund balances for the year-ended June 30, 2010 are presented using GASB 54 as the beginning fund balances for the year-ended June 30, 2011 needed to be determined for implementation. Fund balance presentation prior to 2010 is based on pre GASB 54 presentation.

72


Governmental Funds RevenuesLast Ten Fiscal Years

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Local sources:Property taxes 51,845,030 $ 72,782,420 $ 59,176,308 $ 75,036,895 $ 74,796,279 $ 78,872,018 $ 81,114,434 $ 89,768,538 $ 85,864,918 $ 88,742,993 $ Corporate personal

property replacementtaxes 648,994 737,607 892,547 1,131,268 1,234,228 1,319,849 1,154,566 934,034 1,211,273 1,114,287

Charges for services 2,942,265 3,155,874 3,531,581 3,833,400 4,154,252 3,857,316 4,074,492 3,998,804 3,599,047 2,401,654 Total local sources 55,436,289 76,675,901 63,600,436 80,001,563 80,184,759 84,049,183 86,343,492 94,701,376 90,675,238 92,258,934

State sources:Unrestricted state aid 871,171 994,982 884,585 862,125 887,240 896,606 706,058 743,265 918,577 878,264 Restricted state aid 5,093,078 5,740,231 5,339,961 4,049,605 5,247,873 7,598,385 9,552,118 12,004,650 12,841,392 13,869,263

Total state sources 5,964,249 6,735,213 6,224,546 4,911,730 6,135,113 8,494,991 10,258,176 12,747,915 13,759,969 14,747,527

Federal sources,Restricted federal aid 834,143 728,435 1,015,148 1,020,073 1,063,506 1,223,248 1,358,597 2,514,914 1,106,201 1,288,044

Interest 809,226 460,488 995,738 1,951,924 3,070,669 2,700,738 1,807,187 1,049,315 742,419 576,335

Total revenues 63,043,907 $ 84,600,037 $ 71,835,868 $ 87,885,290 $ 90,454,047 $ 96,468,160 $ 99,767,452 $ 111,013,520 $ 106,283,827 $ 108,870,840 $


73

New Trier Township High School District 203 Governmental Funds Expenditures and Debt Service RatioLast Ten Fiscal Years

2003 2004 2005

Instruction:Regular programs 25,377,041 $ 26,149,713 $ 27,795,289 $ Special programs 6,218,226 6,636,585 7,695,956 Other instructional programs 4,916,366 5,372,621 5,396,727

Total instructional 36,511,633 38,158,919 40,887,972

Support services:Pupils 6,469,563 6,904,494 7,190,432 Instructional staff 2,659,344 3,092,545 3,404,219 General administration 1,879,551 2,076,202 1,998,823 School administration 1,389,377 1,490,047 1,512,533 Business 2,117,233 2,304,848 2,555,869 Transportation 1,059,101 1,346,168 1,507,347 Operations and maintenance 7,710,110 8,269,777 8,339,450 Central 1,124,687 860,417 754,732 Other 26,439 27,650 29,089

Total support services 24,435,405 26,372,148 27,292,494

Community services 41,918 44,402 51,903

Capital Outlay 3,521,414 6,053,984 4,741,160

Debt service:Principal 3,475,335 3,704,149 3,716,393 Interest and charges 1,207,872 1,012,143 722,908 Debt issuance cost - - -

Total debt service 4,683,207 4,716,292 4,439,301

Total expenditures 69,193,577 $ 75,345,745 $ 77,412,830 $

Debt service as a percentage of noncapital expenditures 7.1% 6.8% 6.1%


74

2006 2007 2008 2009 2010 2011 2012

28,458,982 $ 31,088,698 $ 34,144,540 $ 37,044,187 $ 38,148,056 $ 40,136,513 $ 42,087,812 $ 8,032,145 8,227,733 8,685,313 9,286,637 12,312,536 10,302,359 10,936,289 5,816,482 6,297,766 6,508,139 7,172,935 10,352,941 10,171,240 10,827,729

42,307,609 45,614,197 49,337,992 53,503,759 60,813,533 60,610,112 63,851,830

7,735,875 7,885,584 8,641,516 9,269,492 9,805,741 10,396,058 10,982,208 2,960,335 3,172,930 3,429,971 4,389,014 4,146,619 4,184,652 4,190,413 2,138,478 2,078,859 2,184,162 1,212,937 1,211,925 1,405,656 1,255,547 1,566,726 1,656,456 1,610,510 1,296,887 1,372,569 1,176,639 1,236,052 2,574,765 2,915,584 2,884,915 2,942,178 2,975,943 2,943,268 1,473,944 1,504,280 1,723,427 1,782,645 1,967,347 1,551,361 1,555,441 1,641,100 9,425,099 9,705,705 9,858,743 10,090,137 10,191,743 10,399,567 10,250,268

981,057 911,381 1,262,258 2,000,945 1,844,120 2,058,756 2,071,886 30,634 33,813 32,085 43,739 47,664 50,748 53,226

28,917,249 30,083,739 31,686,805 33,212,676 33,147,685 34,170,785 33,154,644

39,805 21,795 26,955 31,267 23,855 13,625 31,984

10,626,021 6,431,540 6,103,752 4,954,198 10,834,658 7,485,204 5,258,787

4,066,094 3,704,035 3,914,135 3,597,113 4,020,378 3,284,423 3,354,734 655,692 494,268 664,168 627,480 543,958 767,720 667,945

- - - - 125,587 - - 4,721,786 4,198,303 4,578,303 4,224,593 4,689,923 4,052,143 4,022,679

86,612,470 $ 86,349,574 $ 91,733,807 $ 95,926,493 $ 109,509,654 $ 106,331,869 $ 106,319,924 $

6.2% 5.3% 5.4% 4.6% 4.6% 4.1% 4.0%

75


Other Financing Sources and Uses and Net Changes in Fund BalancesGovernmental FundsLast Ten Fiscal Years

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Excess (deficiency) of revenuesover (under) expenditures (6,149,670) $ 9,254,292 $ (5,576,962) $ 1,272,820 $ 4,104,473 $ 4,734,353 $ 3,840,959 $ 1,503,866 $ (48,042) $ 2,550,916 $

Other financing sources (uses):Bond proceeds - - 17,153,637 - 3,735,000 - 6,085,000 8,315,000 - - Premium on bonds - - 46,021 - 65,093 - 29,691 246,231 - - Accrued interest on bonds - - - - 5,471 - - - - - Lease proceeds 186,082 268,836 77,963 - 201,659 311,777 - 1,047,461 - 3,149,694 Proceeds from sale of capital assets - - 2,646 - 15,833 27,691 11,025 2,400 8,979 5,859 Transfer in - - - - - - - 8,879,590 451,731 2,897,175 Transfer (out) - - - - - - - (8,879,590) (451,731) (2,897,175) Payment to escrow agent - - (9,095,294) - - - - - - -

Total other financing sources (uses) 186,082 268,836 8,184,973 - 4,023,056 339,468 6,125,716 9,611,092 8,979 3,155,553

Extraordinary items - - - 2,856,000 - - - - - -

Net change in fund balances (5,963,588) $ 9,523,128 $ 2,608,011 $ 4,128,820 $ 8,127,529 $ 5,073,821 $ 9,966,675 $ 11,114,958 $ (39,063) $ 5,706,469 $


76

New Trier Township High School District 203 Assessed Value and Actual Value of Taxable PropertyLast Ten Fiscal Years

Total Taxable Total Tax Equalized DirectLevy Residential Farm Commercial Industrial Railroad Assessed TaxYear Property Property Property Property Property Valuation Rate Property

2011 4,996,407,507 $ 33,115 $ 383,369,577 $ 59,839,879 $ 1,467,860 $ 5,441,117,938 $ 1.6740 $ 16,323,353,814 $

2010 5,532,731,845 33,115 453,482,493 65,807,051 1,384,151 6,053,438,655 1.4737 18,160,315,965

2009 6,430,460,934 33,115 474,433,085 66,214,061 1,114,796 6,972,255,991 1.2363 20,916,767,973

2008 6,019,124,469 19,329 501,756,383 77,976,691 931,647 6,599,808,519 1.2900 19,799,425,557

2007 5,663,371,641 19,329 487,572,673 88,797,596 856,021 6,240,617,260 1.2990 18,721,851,780

2006 4,237,189,487 19,349 405,140,066 75,717,802 784,180 4,718,850,884 1.6627 14,156,552,652

2005 4,207,525,912 19,349 411,659,137 91,882,728 787,909 4,711,875,035 1.5768 14,135,625,105

2004 3,920,081,507 19,349 389,917,626 68,178,920 835,675 4,379,033,077 1.6208 13,137,099,231

2003 3,034,453,414 19,349 329,521,143 58,942,277 746,638 3,423,682,821 1.7989 10,271,048,463

2002 3,048,468,368 19,349 327,605,372 54,049,443 708,545 3,430,851,077 1.9347 10,292,553,231

Source: Cook County Clerk's Office Department of Tax Extensions.

Note: 2011 is the most recent available detailed information.

Note: The county assesses property at approximately 33.3 percent of actual value. Estimated actual taxable value is calculated by dividing taxable value by percentage. Tax rates are per $100 of assessed value.

77


Direct and Overlapping Property Tax RatesLast Ten Fiscal Years

2011 2010 2009 2008 2007 2006 2005 2004 2003 2002District direct rates

Educational 1.3950 $ 1.2271 $ 1.0485 $ 1.0952 $ 1.0919 $ 1.3820 $ 1.2739 $ 1.3032 $ 1.4309 $ 1.6039 $ Tort immunity - - - - 0.0088 0.0139 0.0151 0.0138 0.0147 0.0104 Operations and maintenance 0.1321 0.1162 0.0749 0.0856 0.0956 0.1252 0.1507 0.1537 0.1732 0.1585 Bond and interest 0.0631 0.0566 0.0475 0.0503 0.0132 0.0720 0.0714 0.0853 0.1083 0.1101 Transportation 0.0226 0.0241 0.0262 0.0223 0.0150 0.0193 0.0204 0.0212 0.0256 0.0182 Illinois municipal retirement 0.0254 0.0174 0.0137 0.0128 0.0123 0.0176 0.0159 0.0152 0.0161 0.0184 Social security 0.0358 0.0323 0.0255 0.0238 0.0229 0.0327 0.0294 0.0284 0.0301 0.0152 Life Safety - - - - 0.0393 - - - - -

Total direct 1.6740 1.4737 1.2363 1.2900 1.2990 1.6627 1.5768 1.6208 1.7989 1.9347

Overlapping ratesCook County 0.4620 0.4230 0.3940 0.4150 0.4460 0.5000 0.5470 0.5930 0.6590 0.6900 Cook County Forest Preserve 0.0580 0.0510 0.0490 0.0510 0.0530 0.0570 0.0600 0.0600 0.0590 0.0610 Metropolitan Water Reclamation 0.3200 0.2740 0.2610 0.2520 0.2630 0.2840 0.3150 0.3470 0.3610 0.3710 North Shore Mosquito Abatement 0.0100 0.0090 0.0090 0.0080 0.0080 0.0090 0.0080 0.0080 0.0090 0.0090 New Trier Township 0.0420 0.0410 0.0540 0.0340 0.0460 0.0420 0.0390 0.0390 0.0480 0.0430 Village of Wilmette 0.7780 0.6740 0.5810 0.5930 0.5970 0.7280 0.6710 0.6890 0.7880 0.7390 Wilmette Public Library 0.3020 0.2660 0.2300 0.2410 0.2450 0.2980 0.2830 0.3150 0.3520 0.3150 Wilmette Park District 0.4510 0.3900 0.3320 0.3480 0.3600 0.4410 0.4130 0.4400 0.5260 0.5100 School District 39 2.6200 2.3140 1.7160 1.8120 1.8480 2.2610 2.1510 2.2380 2.7070 2.6100 Suburban TB Sanitarium - - - - - 0.0050 0.0050 0.0010 0.0040 - Oakton Community College 535 0.9600 0.1600 0.1400 0.1400 0.1410 0.1660 0.1580 0.1610 0.1860 0.1790

Total direct and overlapping rate 7.6770 6.0757 5.0023 5.1840 5.3060 6.4537 6.2268 6.5118 7.4979 7.4617

Source: Cook County ClerkNote: Tax rates are per $100 of assessed value.Note: 2011 is the most recent available information.

78


Principal Property Tax PayersCurrent Year and Nine Years Ago

Equalized EqualizedAssessed Percentage Assessed PercentageValuation of Equalized Valuation of Equalized

Taxpayer 2010 Valuation Rank 2002 Valuation Rank

Kraft General Foods 41,928,612$ 0.69 % 1 34,320,910$ 1.00 % 1

Edens Plaza Freed 25,147,472 0.42 2 19,757,219 0.58 2

1630 Sheridan Corp 15,272,671 0.25 3 9,386,486 0.27 4

Plaza Del Lago 13,449,421 0.22 4 10,432,927 0.30 3

Northfield Plaza Property 10,655,245 0.18 5 - - -

Bonstores Realty Two 10,094,466 0.17 6 - - -

College of America Pathologists 9,312,650 0.15 7 7,397,108 0.22 8

Imperial Realty Two 6,469,993 0.11 8 - - -

Thomson Tax 5,530,843 0.09 9 - - -

Albertsons Property Tax 5,331,322 0.09 10 5,833,277 0.17 9

McRaes, Inc. - - - 8,503,032 0.25 5

Coposition Corporation - - - 7,823,431 0.23 6

Willow Hill Executive Center 7,584,656 0.22 7

L J Thalmann Co. - - - 5,590,696 0.16 10

TOTAL 143,192,695$ 2.37 % 116,629,742$ 3.40 %

Source: Cook County Clerk.Note: 2010 is the most recent available information.

June 30, 2011 June 30, 2003

79


Property Tax Levies and CollectionsLast Ten Fiscal Years

Tax Taxes Levied CollectionsLevy for the in Subsequent TotalYear Fiscal Year Amount Years Collections

2011 91,081,544 $ 46,753,122 $ 51.33 % -$ 46,753,122 $ 51.33 %

2010 89,227,686 45,182,572 50.64 43,281,915 88,464,487 99.14

2009 86,200,085 44,794,439 51.97 40,921,257 85,715,696 99.44

2008 85,124,735 38,768,706 45.54 45,391,350 84,160,056 98.87

2007 81,066,565 37,500,371 46.26 42,089,922 79,590,293 98.18

2006 78,427,302 35,615,608 45.41 41,948,173 77,563,781 98.90

2005 74,306,269 34,518,280 46.45 38,616,748 73,135,028 98.42

2004 70,975,063 29,147,440 41.07 40,783,943 69,931,383 98.53

2003 61,592,954 31,862,534 51.73 29,047,407 60,909,941 98.89

2002 66,376,363 24,849,018 37.44 40,795,313 65,644,331 98.90

Source: Cook County Clerk.

Percentage ofLevy

Fiscal Year of the LevyCollections within the

Percentage ofLevy

Total

80


Outstanding Debt by TypeLast Ten Fiscal Years

GeneralObligation Total

Year and Capital Alternative Total Primary Equalized TotalEnded Appreciation Revenue Bonded Capital Government Assessed Debt

June 30, Bonds Bonds Debt Leases Debt Valuation Per Capita

2012 19,228,765 $ 1,905,000 $ 21,133,765 $ 3,473,581 $ 24,607,346 $ 5,441,117,938 $ 0.39 % 0.62 % 442 $

2011 22,016,833 2,020,000 24,036,833 653,621 24,690,454 6,053,438,655 0.40 0.63 444

2010 24,711,732 2,130,000 26,841,732 958,044 27,799,776 6,972,255,991 0.38 0.70 500

2009 19,019,350 2,950,000 21,969,350 265,961 22,235,311 6,599,808,519 0.33 0.56 392

2008 17,800,726 1,395,000 19,195,726 404,874 19,600,600 6,240,617,260 0.31 0.50 346

2007 20,661,112 2,065,000 22,726,112 277,152 23,003,264 4,718,850,884 0.48 0.58 406

2006 19,579,111 2,705,000 22,284,111 214,528 22,498,639 4,711,875,035 0.47 0.57 397

2005 22,615,776 3,305,000 25,920,776 380,622 26,301,398 4,379,033,077 0.59 0.67 464

2004 17,160,000 3,735,000 20,895,000 454,052 21,349,052 3,423,682,821 0.61 0.54 376

2003 22,840,141 4,260,000 27,100,141 329,365 27,429,506 3,430,851,077 0.79 0.69 484

Note: Population information and personal income can be found with the Demographic and Economic Statistics.

Source: District's Annual Financial Statements.

IncomeValuation

Debt as

Governmental Activities Bonded Debt as

Assessed

Total

Personal

PercentageEqualized Percentage

81


Computation of Direct and Overlapping Governmental Activities DebtJune 30, 2012

EstimatedShare of

Estimated Direct andDebt Percentage Overlapping

Outstanding Applicable (1) Debt

Overlapping Districts:County

Cook County 3,738,830,000 $ 3.55 % 132,728,465 $ Cook County Forest Preserve 101,935,000 3.55 3,618,693 Metropolitan Water Reclamation District 2,495,258,694 3.62 90,328,365

School DistrictsSchool District 29 1,278,345 100.00 1,278,345 School District 35 19,360,000 100.00 19,360,000 School District 36 55,732,565 100.00 55,732,565 School District 37 2,931,610 100.00 2,931,610 School District 38 10,815,000 100.00 10,815,000 School District 39 11,235,000 100.00 11,235,000

Park DistrictsGlencoe Park District 12,145,000 100.00 12,145,000 Glenview Park District 15,245,000 4.79 730,236 Wilmette Park District 23,635,000 100.00 23,635,000 Winnetka Park District 2,185,000 100.00 2,185,000

MunicipalitiesVillage of Glencoe 10,530,000 100.00 10,530,000 Village of Glenview 139,990,000 5.31 7,433,469 Village of Kenilworth 6,720,000 100.00 6,720,000 Village of Northbrook 75,830,000 2.75 2,085,325 Village of Wilmette 74,375,000 100.00 74,375,000 Village of Winnetka 1,780,000 100.00 1,780,000

MiscellaneousOakton Community College 27,245,000 23.37 6,367,157

Total overlapping debt 476,014,230

District direct debt 24,607,346 100.00 24,607,346

Total direct and overlapping debt 500,621,576 $

Note: Overlapping governments with no outstanding debt are not reflected.

Sources: Cook County Clerk.

(1) The percentage of overlapping debt applicable is estimated using taxable property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable value that is within the District's boundaries and dividing it by each unit's total taxable value.

82


Legal Debt Margin Information

Last Ten Fiscal Years

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Debt limit 236,728,724$ 236,234,115$ 302,153,282$ 325,119,377$ 325,600,711$ 430,602,591$ 455,374,218$ 481,085,663$ 417,687,267$ 375,437,138$

Total net debt applicable to limit 24,315,000 20,895,000 25,738,637 21,838,637 22,008,637 18,278,557 20,905,357 25,806,902 23,144,474 20,506,854

Legal debt margin 212,413,724$ 215,339,115$ 276,414,645$ 303,280,740$ 303,592,074$ 412,324,034$ 434,468,861$ 455,278,761$ 394,542,793$ 354,930,284$

Total net debt applicable to the limit

as a percentage of debt limit 10.27% 8.85% 8.52% 6.72% 6.76% 4.24% 4.59% 5.36% 5.54% 5.46%

Legal Debt Margin Calculation for Fiscal 2012

Assessed Value 5,441,117,938 $

Debt limit percentage 6.9%

Debt limit 375,437,138

Debt applicable to limit

General obligation bonds 16,720,000

Capital appreciation bonds 2,508,765

Alternative revenue bonds 1,905,000

Less: accreted interest (626,911)

20,506,854

Legal debt margin 354,930,284 $

83


Demographic and Economic StatisticsLast Ten Calendar Years

Per CapitaCalendar Estimated Personal Personal Unemployment

Year Population Income Income Rate

2011 55,653 3,949,462,455 $ 70,966 $ 7.9 %

2010 55,653 3,949,462,455 70,966 6.0

2009 55,653 3,949,462,455 70,966 6.1

2008 56,715 3,949,462,455 69,637 3.6

2007 56,715 3,949,462,455 69,637 2.8

2006 56,715 3,949,462,455 69,637 2.5

2005 56,715 3,949,462,455 69,637 3.4

2004 56,715 3,949,462,455 69,637 4.0

2003 56,715 3,949,462,455 69,637 3.3

2002 56,715 3,949,462,455 69,637 3.4

Note: Population and personal income information based on most recent census data.

Note: Unemployment rates are per Illinois Department of Employment Security.

84


Principal Employers

Number of Percentage Number of PercentageEmployer Employees (1) Rank of Total Employees (1) Rank of Total

Allstate Insurance Company 5,750 1 26.9% 5,000 1 22.2%

Northwestern University 5,200 2 24.3% 3,900 2 17.3%

NorthShore University Healthcare 3,061 3 14.3% 3,000 3 13.3%

Underwriter Laboratories, Inc 1,600 4 7.5% 1,600 7 7.1%

Skokie Hospital 1,200 5 5.6% - 0.0%

St. Francis Hospital of Evanston 1,100 6 5.1% 1,870 5 8.3%

Caremark 1,000 7 4.7% - -

John Crane, Inc 900 8 4.2% - -

ITT Residential & Commercial Water 825 9 3.9% - -

Avon Products 750 10 3.5% - -

Fel-Pro - - - 2,100 4 9.3%

Rank Video Service - - - 1,700 6 7.5%

Kraft General Food - - - 1,200 8 5.3%

North Shore Medical - - - 1,200 8 5.3%

Zenith Electronics - - - 1,000 10 4.4%

21,386 100.0% 22,570 100.0%

(1) Includes full-time, part-time and seasonal employees

Source: Written and telephone survey, 2010 Illinois Manufacturer's Register, 2010 Illinois Service Directory.

Current Year and Nine Years Ago20022011

85


Full-Time Equivalent District Employees by TypeLast Ten Fiscal Years

2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Administration:Superintendent 1 1 1 1 1 1 1 1 1 1 Assistant Superintendents 3 3 3 2 2 2 2 2 2 2 District Administrators 8 8 8 8 8 7 6 7 7 8 Principals and Assistants 5 5 5 5 5 5 5 5 5 5

Total Administration 17 17 17 16 16 15 14 15 15 16

Teachers:Regular Education 335 331 334 341 346 320 314 310 303 294 Special Education 54 48 53 50 48 45 46 40 39 39 Psychologists 4 4 4 4 4 3 2 2 2 2 Social workers and counselors 14 12 12 13 11 10 11 12 11 10

Total Teachers 407 395 403 408 409 378 373 364 355 345

Other Supporting Staff:Instructional Aides 62 55 50 53 42 35 29 25 19 17 Clerical 10/12 month 158 170 183 175 173 180 179 177 178 179 Health Assistants 2 2 2 2 2 3 2 2 2 2 Maintenance, Custodians, and Warehouse 69 66 70 73 73 74 73 72 72 72 Nurses 3 3 3 3 3 3 2 2 2 2

Total Other Supporting Staff 294 296 308 306 293 295 285 278 273 272

Grand total 718 708 728 730 718 688 672 657 643 633

Source: District personnel records.

Full-time Equivalent Employees as of June 30

86


Operating StatisticsLast Ten Fiscal Years

Cost Cost PupilFiscal Operating Per Total Per Teaching TeacherYear Enrollment (1) Expenditures Pupil Expenses Pupil Staff Ratio

2012 4,015 82,043,697 $ 20,434.80 0.61 % 84,012,920 $ 20,925.28 2.52 % 389 10.32 3.3 %

2011 3,919 81,546,485 20,806.87 4.07 81,945,570 20,908.70 5.41 379 10.34 3.9

2010 3,913 78,358,534 20,022.67 2.85 77,743,485 19,865.51 5.09 387 10.11 3.9

2009 3,924 76,190,810 19,416.62 5.05 73,974,946 18,851.92 4.60 391 10.04 2.2

2008 3,975 72,529,785 18,246.49 5.91 70,723,942 17,792.19 5.43 394 10.09 1.8

2007 3,904 68,482,585 17,541.65 4.42 67,083,250 17,183.21 4.41 365 10.70 1.9

2006 3,891 65,584,410 16,855.41 7.38 64,250,539 16,512.60 7.41 360 10.81 1.8

2005 3,811 61,074,635 16,025.88 5.68 59,817,534 15,696.02 4.81 350 10.89 1.3

2004 3,752 57,792,439 15,403.10 4.59 57,070,153 15,210.60 4.32 342 10.97 1.6

2003 3,660 55,255,868 15,097.23 3.96 54,708,717 14,947.74 5.30 333 10.99 0.9

(1) Represents the District's 9 month average daily attendance.

Source: District records and annual financial report.

Percentage of

PercentageChange

PercentageChange

Students Free or Reduced

Meals

87


Capital Asset InformationLast Ten Fiscal Years

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Northfield Campus

Square Feet 409,000 409,000 409,000 409,000 409,000 409,000 409,000 409,000 409,000 409,000 Enrollment 1,008 1,006 1,061 1,024 1,045 1,043 1,041 1,017 1,068 1,026

Winnetka CampusSquare Feet 722,000 722,000 722,000 722,000 722,000 722,000 722,000 722,000 722,000 722,000 Enrollment 2,821 2,952 2,964 3,070 3,105 3,108 3,110 3,126 3,097 3,203

Total Enrollment 3,829 3,958 4,025 4,094 4,150 4,151 4,151 4,143 4,165 4,229

Source: District records.

Fiscal Year

COMPREHENSIVE ANNUAL FINANCIAL REPORT NEW TRIER …gfoa.net/cafr/COA2012/NewTrierTownshipHighSchoolDistrict203IL.pdf · Illinois. The class of 2012 included a Presidential Scholar

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