SPECIAL SERVICE AREA NO.

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1 DAVID TAUSSIG & Associates, Inc. VILLAGE OF PINGREE GROVE SPECIAL SERVICE AREA NO. 7 ANNUAL ADMINISTRATION REPORT LEVY YEAR 2016 November 28, 2016 Public Finance Facilities Planning Urban Economics Newport Beach Riverside San Francisco San Jose Dallas

2 VILLAGE OF PINGREE GROVE SPECIAL SERVICE AREA NO. 7 ANNUAL ADMINISTRATION REPORT LEVY YEAR 2016 PREPARED FOR VILLAGE OF PINGREE GROVE 14N042 Reinking Road Pingree Grove, IL PREPARED BY DAVID TAUSSIG & ASSOCIATES, INC. Corporate Office 5000 Birch Street, Suite 6000 Newport Beach, California Division Offices Riverside, California San Francisco, California San Jose, California Dallas, Texas

3 Table of Contents Section Page INTRODUCTION...1 AUTHORIZED SPECIAL SERVICES... 1 BONDED INDEBTEDNESS... 1 SPECIAL TAXES... 2 I. SPECIAL TAX REQUIREMENT...3 II. ACCOUNT ACTIVITY SUMMARY...4 III. MAXIMUM, ABATED, AND EXTENDED SPECIAL TAXES...7 IV. PRIOR YEAR SPECIAL TAX COLLECTIONS...10 LEVY YEAR 2015 SPECIAL TAX RECEIPTS TAX SALES AND FORECLOSURES V. DEVELOPMENT STATUS...11 EQUALIZED ASSESSED VALUE VI. OUTSTANDING BONDS...12 BOND REDEMPTIONS FROM SPECIAL TAX PREPAYMENTS SPECIAL TAX PREPAYMENTS VII. EQUALIZED ASSESSED VALUE AND VALUE TO LIEN RATIO...13 VIII. AD VALOREM PROPERTY TAX RATES...14 EXHIBIT A EXHIBIT B EXHIBIT C EXHIBIT D EXHIBIT E EXHIBIT F EXHIBIT G FUNDS AND ACCOUNTS APPLICATION OF SPECIAL TAX APPLICATION OF EARNINGS CURRENT DEBT SERVICE SCHEDULE AERIAL EXHIBIT OF SSA BOUNDARIES SPECIAL TAX ROLL AND REPORT 2016 AMENDED SPECIAL TAX ROLL

4 Introduction This report calculates the 2016 special taxes required to pay annual debt service on the Village of Pingree Grove (the "Village") Special Service Area Number 7 ("SSA No. 7") Special Tax Refunding Bonds, Series 2015 (Cambridge Lakes Project) (the "Series 2015 Bonds") and administrative expenses and apportions the special taxes to each taxable parcel within SSA No. 7. Pursuant to the Special Service Area Act (the "Act"), the Village Board are the governing body of SSA No. 7. The Village Board must annually, prior to the last Tuesday of December, approve by ordinance the special taxes collected, abate the Maximum Parcel Special Taxes in excess of the special taxes collected, and direct the County Clerk of Kane County to extend the special taxes for collection. The special taxes will be billed on the tax bill for ad valorem property taxes. SSA No. 7 was established by Ordinance No (the "Establishing Ordinance"), adopted on May 1, The Establishing Ordinance authorized SSA No. 7 to provide special services, issue bonds, and levy a special tax to repay the bonds. Authorized Special Services The authorized special services include: Engineering; Soil testing and appurtenant work; Mass grading and demolition; Storm water management facilities; Storm drainage systems and storm sewers; Site clearing and tree removal; Public water facilities; Sanitary sewer facilities; Erosion control measures; Roads, streets, curbs, gutters, street lighting, traffic controls, sidewalks, equestrian paths and related street improvements, equipment and materials necessary for the maintenance thereof; Landscaping, wetland mitigation, public park improvements and tree installation; Costs for land and easement acquisitions relating to any of the foregoing improvements; and Required tap-on and related fees for water or sanitary sewer services and other eligible costs. Bonded Indebtedness The Establishing Ordinance specified that not more than $34,000,000 in bonds may be issued by SSA No. 7. Ordinance No (the "Bond Ordinance"), adopted on May 1, 2006 approved the form of a trust indenture and preliminary limited offering memorandum and provided for the issuance of not more than $34,000,000 in Series Bonds. The Series Bonds were Village of Pingree Grove SSA No. 7 Page Administration Report November 23, 2016

5 issued in the amount of $26,700,000 in May The Series Bonds were refunded in June Ordinance No O-19 (the 2015 Bond Ordinance ), adopted on June 15, 2015 approved the form of a trust indenture and preliminary limited offering memorandum and provided for the issuance of not more than $27,500,000 in bonds. Village of Pingree Grove SSA No. 7, Series 2015 Bonds were issued in July 2015 in the amount of $25,435,000. The current debt service schedule is attached hereto as Exhibit E and a brief summary of any optional redemption of bonds is contained in Section VI herein. Special Taxes The Establishing Ordinance incorporates the Village of Pingree Grove Special Service Area Number 7 Special Tax Roll and Report (the "Special Tax Roll and Report"). The Special Tax Roll and Report sets forth the Maximum Parcel Special Taxes which have been levied for the payment of principal of and interest on the Series 2015 Bonds and the administration and maintenance of SSA No. 7 and is attached hereto as Exhibit G. A table of the Maximum Parcel Special Taxes is included in Section III herein. Village of Pingree Grove SSA No. 7 Page Administration Report November 23, 2016

6 I. Special Tax Requirement The SSA No Special Tax Requirement is equal to $1,836,358. As shown in Table 1 below, the 2016 Special Tax Requirement is equal to the sum of the Series 2015 debt service for the twelve months ending March 1, 2018, estimated administrative expenses, and the contingency for estimated delinquent special taxes and less the estimated 2017 bond year-end fund balances and excess reserve funds shown in Table 3 below TABLE 1 SPECIAL SERVICE AREA NO SPECIAL TAX REQUIREMENT SOURCES OF FUNDS $1,850,504 Prior Year Surplus/(Deficit) $14,146 Earnings $0 Special Taxes Billed $1,824,899 Delinquency Contingency $11,459 USES OF FUNDS ($1,850,504) Debt Service Interest - 09/01/2017 ($615,523) Interest - 03/01/2018 ($615,523) Principal - 03/01/2018 ($580,000) Administrative Expenses ($28,000) Delinquent Special Taxes ($11,459) Projected Surplus/(Deficit) - 03/01/2018 $0 Village of Pingree Grove SSA No. 7 Page Administration Report November 23, 2016

7 II. Account Activity Summary The Trust Indenture for the Series 2015 Bonds (the "2015 Indenture") establishes five funds and three accounts. The five funds are the Bond and Interest Fund, Junior Lien Reserve Fund, Special Reserve Fund, Administrative Expense Fund, and Rebate Fund. Within the Bond and Interest Fund is the Special Redemption Account. Within the Administrative Expense Fund is the Cost of Issuance Account. A diagram of the funds and accounts is included herein as Exhibit A. Money held in any of the funds and accounts can be invested at the direction of the Village Board and in conformance with the limitations set forth in the 2015 Indenture. Investment interest earnings, if any, will generally be applied to the fund or account for which the investment is made. Diagrams of the application of special taxes and earnings are attached as Exhibits B and C, respectively. A summary of account activity for the twelve months ending September 30, 2016 is shown in Table 2A and Table 2B on the following pages. Village of Pingree Grove SSA No. 7 Page Administration Report November 23, 2016

8 TABLE 2 SPECIAL SERVICE AREA NO 7 TRANSACTION SUMMARY SERIES 2015 ACCOUNTS SOURCES OF FUNDS - ACTUAL Administrative Expense Fund Junior Lien Reserve Fund Bond and Interest Fund Senior Lien Principal and Interest Account Junior Lien Principal and Interest Account Special Redemption Account Beginning Balance - 10/01/2015 $17,978 $492,908 $1,682,925 $7 $0 $0 Earnings $19 $1,048 $659 $302 $94 $3 Special Taxes Prior Year(s) $0 $0 $13,865 $0 $0 $0 Levy Year 2015 $0 $0 $1,741,953 $0 $0 $0 Bond Proceeds from Refunding $0 $0 $0 $0 $0 $0 Miscellaneous $0 $0 $0 $245 $0 $13,360 USES OF FUNDS - ACTUAL Account Transfers All Other $0 $305,945 ($2,280,635) $1,508,725 $465,688 $277 Administrative Expense Transfers Levy Year 2015 Prefunding $0 $0 $0 $0 $0 $0 Levy Year 2015 Budget $11,150 $0 ($11,100) $0 $0 ($50) Debt Service Principal - 03/01/2016 $0 $0 $0 ($530,000) ($170,000) $0 Interest - 03/01/2016 $0 $0 $0 ($495,450) ($150,000) $0 Interest - 09/01/2016 $0 $0 $0 ($483,275) ($144,810) $0 Bond Redemptions/Prepayments Principal Redemption $0 $0 $0 $0 $0 ($13,000) Redemption Premium $0 $0 $0 $0 $0 ($260) Refund to Property Owners $0 $0 $0 $0 $0 $0 Miscellaneous $0 $0 $0 $0 $0 $0 Administrative Expenses ($28,519) $0 $0 $0 $0 $0 Ending Balance - 09/30/2016 $628 $799,902 $1,147,667 $553 $972 $330 Village of Pingree Grove SSA No. 7 Page Administration Report November 23, 2016

9 The calculation of the estimated 2017 bond year-end fund balances and excess reserve funds is shown in Table 3 below. SOURCES OF FUNDS - PROJECTED TABLE 3 SPECIAL SERVICE AREA NO 7 ESTIMATED 2017 YEAR-END FUND BALANCES Administrative Expense Fund Junior Lien Reserve Fund Bond and Interest Fund Senior Lien Principal and Interest Account Junior Lien Principal and Interest Account Special Redemption Account Beginning Balance - 09/30/2016 $628 $799,902 $1,147,667 $553 $972 $330 Earnings $0 $0 $0 $0 $0 $0 Special Taxes Prior Year(s) $0 $0 $0 $0 $0 $0 Levy Year 2015 $0 $0 $43,785 $0 $0 $0 Projected Tax Sale Receipts $0 $0 $0 $0 $0 $0 USES OF FUNDS - PROJECTED Account Transfers $0 ($179) ($1,156,381) $927,722 $228,838 $0 Administrative Expense Transfers Levy Year 2016 Prefunding $14,000 $0 ($14,000) $0 $0 $0 Levy Year 2015 Budget $6,925 $0 ($6,925) $0 $0 $0 Debt Service Interest - 03/01/2017 $0 $0 $0 ($483,275) ($144,810) $0 Principal - 03/01/2017 $0 $0 $0 ($445,000) ($85,000) $0 Administrative Expenses Remaining Levy Year 2015 Expenses ($7,553) $0 $0 $0 $0 $0 Reimbursement from SSA 2 $2,250 $0 $0 $0 $0 $0 Ending Balance - 03/01/2017 $16,250 $799,723 $14,146 $0 ($0) $330 Reserve Fund Requirement $0 ($799,723) $0 $0 $0 $0 Funds Not Eligible for Levy Surplus ($16,250) $0 $0 $0 $0 ($330) Projected Surplus/(Deficit) 03/01/2017 $0 $0 $14,146 $0 ($0) $0 Village of Pingree Grove SSA No. 7 Page Administration Report November 28, 2016

10 III. Maximum, Abated, and Extended Special Taxes Pursuant to the Special Tax Roll and Report, the 2016 Maximum Parcel Special Taxes equal $2,459,551. Subtracting the 2016 Special Tax Requirement of $1,836,358, results in an abatement of $623,193. In accordance with the Special Tax Roll and Report the Maximum Parcel Special Tax applicable to each Parcel in SSA 7 is abated in equal percentages until the special tax remaining equals the Special Tax Requirement. The maximum, abated, and extended special tax for each special tax classification is shown in Table 4 below. The Amended Special Tax Roll, which lists the maximum, abated, and extended special tax for each parcel, is attached as Exhibit H. Note, the special tax levy and abatement have been adjusted to reconcile with the special taxes set forth in the bond ordinance. TABLE 4 SPECIAL SERVICE AREA NO 7 MAXIMUM, ABATED AND EXTENDED SPECIAL TAXES Special Tax Classification Maximum Parcel Special Tax Abated Special Tax Extended Special Tax Single Family Dwelling Unit $2, $ Single Family Dwelling Unit - Partial Prepay $1, $ $ Single Family Dwelling Unit - Prepaid $2, $2, Duplex Dwelling Unit $1, Duplex Dwelling Unit - Prepaid $1, $1, Townhome Dwelling Unit $1, Townhome Dwelling Unit - Prepaid $1, $1, Village of Pingree Grove SSA No. 7 Page Administration Report November 28, 2016

11 A comparison of the maximum and extended special tax amounts for 2016 and 2015 are shown in Table 5 below. TABLE 5 SPECIAL SERVICE AREA NO 7 COMPARISON OF MAXIMUM AND EXTENDED SPECIAL TAXES Special Tax Classification Levy Year 2016 Levy Year 2015 Percentage Change Maximum Parcel Special Tax Single Family Dwelling Unit $2, $2, % Duplex Dwelling Unit $1, $1, % Townhome Dwelling Unit $1, $1, % Extended Special Tax Single Family Dwelling Unit $1, % Duplex Dwelling Unit $1, % Townhome Dwelling Unit $1, % The schedule of the remaining SSA No. 7 Maximum Parcel Special Taxes is shown in Table 6 on the following page. The Maximum Parcel Special Taxes escalate one and one-half percent (1.50%) annually through Village of Pingree Grove SSA No. 7 Page Administration Report November 28, 2016

12 Levy Year Collection Year TABLE 6 SPECIAL SERVICE AREA NO 7 MAXIMUM PARCEL SPECIAL TAXES Aggregate Per Unit Single Family Duplex Townhome $2,459,551 $2,380 $1,380 $1, $2,496,833 $2,416 $1,401 $1, $2,534,116 $2,452 $1,422 $1, $2,572,068 $2,489 $1,443 $1, $2,610,647 $2,526 $1,465 $1, $2,649,896 $2,564 $1,487 $1, $2,689,145 $2,602 $1,509 $1, $2,729,691 $2,641 $1,532 $1, $2,770,907 $2,681 $1,555 $1, $2,812,123 $2,721 $1,578 $1, $2,854,635 $2,762 $1,602 $1, $2,897,148 $2,803 $1,626 $1, $2,940,331 $2,845 $1,650 $1, $2,984,810 $2,888 $1,675 $1, $3,029,289 $2,931 $1,700 $1, $3,075,065 $2,975 $1,726 $1, $3,121,511 $3,020 $1,752 $1, $3,167,958 $3,065 $1,778 $1, $3,215,700 $3,111 $1,805 $1,805 Village of Pingree Grove SSA No. 7 Page Administration Report November 28, 2016

13 IV. Prior Year Special Tax Collections The SSA No. 7 special tax is billed and collected by Kane County (the "County") in the same manner and at the same time as general ad valorem property taxes. The Village may provide for other means of collecting the special tax, if necessary to meet the financial obligations of SSA No. 7. Levy Year 2015 Special Tax Receipts As of October 6, 2016, the SSA No. 7 Levy Year 2015 special tax receipts totaled $1,785,838. Special taxes in the amount $11,217 are unpaid for delinquency rate of 0.62%. Tax Sales and Foreclosures The lien and foreclosure remedies provided for in Article 9 of the Illinois Municipal Code shall apply upon the nonpayment of the special tax. Currently, there are no foreclosures to report. Kane County held their annual tax sale on October 31, Three (3) parcels totaling $2, in special taxes were offered and sold at the tax sale. Village of Pingree Grove SSA No. 7 Page Administration Report November 28, 2016

14 V. Development Status SSA No. 7 is comprised of six hundred eighty-three (683) single family homes, one hundred sixty-four (164) duplex units, and four hundred fifty-eight (458) townhomes. An aerial map of SSA No. 7 is attached as Exhibit F. The number of units in each plat is summarized in Table 7 below. TABLE 7 SPECIAL SERVICE AREA NO 7 LAND USE SUMMARY Plat Unit 7 Yes Single Family 109 Unit 8 Yes Single Family 113 Unit 9 Yes Single Family 75 Unit 9A Yes Single Family 61 Unit 10 Yes Single Family 95 Unit 10A Yes Single Family 63 Unit 11 Yes Single Family Townhome Unit 12 Yes Single Family 90 Unit 13 Yes Single Family Unit 14 Yes Townhome 201 Unit 14A Yes Townhome 132 Unit 15 Yes Duplex 138 Unit 15A Yes Townhome 26 Equalized Assessed Value Recorded Land Use Equalized assessed value increased in 2015 to $65,033,468. Total Number of Units 1,305 The average assessed value per developed single-family dwelling unit equals $61,634. The average assessed value per developed duplex dwelling unit equals $52,618. The average assessed value per developed townhome dwelling unit equals $32,715. Village of Pingree Grove SSA No. 7 Page Administration Report November 28, 2016

15 VI. Outstanding Bonds The Series 2015 Bonds were issued in July 2006 as fixed rate bonds with an original principal amount of $25,435,000. As of September 2, 2015, the outstanding principal was $24,735,000. The current debt schedule adjusted for early redemptions from special tax prepayments is attached herein as Exhibit E. Bond Redemptions from Special Tax Prepayments As a result of special tax prepayments received from property owners, $264,000 of the Series Bonds were redeemed prior to the issuance of the Series 2015 Bonds. One prepayment has been received since the issuance of the Series 2015 Bonds. Redemption Date Bonds Redeemed March 1, 2016 $13,000 Total Redeemed $13,000 Special Tax Prepayments The SSA No. 7 Maximum Parcel Special Tax may be prepaid and permanently satisfied, or prepaid in part, provided that proceeds for any such prepayment are sufficient to permit the redemption of Bonds in such amounts and maturities deemed necessary by the Administrator and in accordance with the Bond Indenture. The prepayment calculation formula is set forth in the Special Tax Roll and Report. To-date, the Maximum Parcel Special Tax has been prepaid in full for 7 single family dwelling units and 5 duplex dwelling units before the refunding of the Series 2005 Bonds. One partial prepayment for single family dwelling unit has also been received before the refunding of the Series 2005 Bonds. One (1) townhome dwelling unit has been prepaid in full after the refunding. Village of Pingree Grove SSA No. 7 Page Administration Report November 28, 2016

16 VII. Equalized Assessed Value and Value to Lien Ratio The SSA No. 7 Equalized Assessed Value and Value-to-Lien Ratio is shown in Table 8 below. TABLE 8 SPECIAL SERVICE AREA NO 7 EQUALIZED ASSESSED VALUE AND VALUE TO LIEN RATIO Outstanding Bonds 3 Equalized Assessed Value Appraised Value 2 Value to Lien Ratio $65,033,468 $195,100,404 $24,722, :1 1 Source: Kane County 2 Equal to three times the Equalized Assessed Value. 3 Outstanding Special Tax Bonds as of September 1, Village of Pingree Grove SSA No. 7 Page Administration Report November 28, 2016

17 VIII. Ad Valorem Property Tax Rates The 2015 general ad valorem tax rates for SSA No. 7 are shown in Table 9 below. TABLE 9 SPECIAL SERVICE AREA NO AD VALOREM PROPERTY TAX RATES City Rates % Corporate % Audit % Liability Insurance % Social Security % Rutland Township % Kane County % Kane Forest Preserve % Rutland Township % Rutland TWP Road District % Dundee School District % Elgin College % Ella Johnson Library % Pingree Grove Fire Dist % Total Tax Rate % 4 Source: Kane County Tax Year 2015 Tax Computation Report. 5 Source: Kane County Tax Year 2015 District Rates by Taxcode Report. Village of Pingree Grove SSA No. 7 Page Administration Report November 28, 2016

18 EXHIBIT A VILLAGE OF PINGREE GROVE SSA NO. 7 FUNDS AND ACCOUNTS

19 Special Service Area No. 7 of the Village of Pingree Grove Funds and Accounts SSA No. 7 Funds and Accounts Bond and Interest Fund Junior Lien Reserve Fund Administrative Expense Fund Rebate Fund Senior Lien Principal and Interest Account Junior Lien Principal and Interest Account Special Redemption Account Cost of Issuance Account

20 EXHIBIT B VILLAGE OF PINGREE GROVE SSA NO. 7 APPLICATION OF SPECIAL TAX

21 Special Service Area No. 7 of the Village of Pingree Grove Application of Special Tax 1 SSA No. 7 Funds and Accounts Bond and Interest Fund Junior Lien Reserve Fund 1 Administrative Expense Fund Rebate Fund Senior Lien Principal and Interest Account Junior Lien Principal and Interest Account Special Redemption Account Cost of Issuance Account 1. Special tax applied in sequence as shown. 2. In an amount sufficient to pay principal and interest on the bonds.

22 EXHIBIT C VILLAGE OF PINGREE GROVE SSA NO. 7 APPLICATION OF EARNINGS

23 Special Service Area No. 7 of the Village of Pingree Grove Application of Earnings 1 SSA No. 7 Funds and Accounts Bond and Interest Fund Junior Lien Reserve Fund 1 Administrative Expense Fund Rebate Fund Senior Lien Principal and Interest Account Junior Lien Principal and Interest Account Special Redemption Account Cost of Issuance Account 1. Earnings remain in fund/account from which they accrued unless otherwise noted.

24 EXHIBIT D VILLAGE OF PINGREE GROVE SSA NO. 7 DEBT SERVICE SCHEDULE

25 PRINCIPAL VILLAGE OF PINGREE GROVE SPECIAL SERVICE AREA NO. 7 DEBT SERVICE SCHEDULE INTEREST DEBT SERVICE YEAR ENDING (3/1) PAYMENT DATE 2015A 2015B 2015A 2015B 2015A 2015B /1/2015 $0 $0 $168,153 $50,923 $168,153 $50, /1/2016 $530,000 $170,000 $495,200 $149,910 $1,025,200 $319, /1/2016 $0 $0 $483,275 $144,810 $483,275 $144, /1/2017 $445,000 $85,000 $483,275 $144,810 $928,275 $229, /1/2017 $0 $0 $473,263 $142,260 $473,263 $142, /1/2018 $485,000 $95,000 $473,263 $142,260 $958,263 $237, /1/2018 $0 $0 $462,350 $139,410 $462,350 $139, /1/2019 $525,000 $110,000 $462,350 $139,410 $987,350 $249, /1/2019 $0 $0 $450,538 $136,110 $450,538 $136, /1/2020 $570,000 $120,000 $450,538 $136,110 $1,020,538 $256, /1/2020 $0 $0 $437,713 $132,510 $437,713 $132, /1/2021 $620,000 $135,000 $437,713 $132,510 $1,057,713 $267, /1/2021 $0 $0 $423,763 $128,460 $423,763 $128, /1/2022 $665,000 $150,000 $423,763 $128,460 $1,088,763 $278, /1/2022 $0 $0 $408,800 $123,960 $408,800 $123, /1/2023 $720,000 $160,000 $408,800 $123,960 $1,128,800 $283, /1/2023 $0 $0 $392,600 $119,160 $392,600 $119, /1/2024 $775,000 $180,000 $392,600 $119,160 $1,167,600 $299, /1/2024 $0 $0 $375,163 $113,760 $375,163 $113, /1/2025 $835,000 $195,000 $375,163 $113,760 $1,210,163 $308, /1/2025 $0 $0 $356,375 $107,910 $356,375 $107, /1/2026 $895,000 $210,000 $356,375 $107,910 $1,251,375 $317, /1/2026 $0 $0 $334,000 $101,610 $334,000 $101, /1/2027 $964,000 $230,000 $334,000 $101,610 $1,298,000 $331, /1/2027 $0 $0 $309,900 $94,710 $309,900 $94, /1/2028 $1,034,000 $250,000 $309,900 $94,710 $1,343,900 $344, /1/2028 $0 $0 $284,050 $87,210 $284,050 $87, /1/2029 $1,109,000 $275,000 $284,050 $87,210 $1,393,050 $362, /1/2029 $0 $0 $256,325 $78,960 $256,325 $78, /1/2030 $1,189,000 $295,000 $256,325 $78,960 $1,445,325 $373, /1/2030 $0 $0 $226,600 $70,110 $226,600 $70, /1/2031 $1,269,000 $320,000 $226,600 $70,110 $1,495,600 $390, /1/2031 $0 $0 $194,875 $60,510 $194,875 $60, /1/2032 $1,359,000 $345,000 $194,875 $60,510 $1,553,875 $405, /1/2032 $0 $0 $160,900 $50,160 $160,900 $50, /1/2033 $1,454,000 $375,000 $160,900 $50,160 $1,614,900 $425, /1/2033 $0 $0 $124,550 $38,910 $124,550 $38, /1/2034 $1,559,000 $399,000 $124,550 $38,910 $1,683,550 $437, /1/2034 $0 $0 $85,575 $26,940 $85,575 $26, /1/2035 $1,654,000 $434,000 $85,575 $26,940 $1,739,575 $460, /1/2035 $0 $0 $44,225 $13,920 $44,225 $13, /1/2036 $1,769,000 $464,000 $44,225 $13,920 $1,813,225 $477,920 $20,425,000 $4,997,000 $13,233,028 $4,023,613 $33,658,028 $9,020,613 Outstanding Principal as of 03/02/2017 $ 24,192,000

26 EXHIBIT E VILLAGE OF PINGREE GROVE SSA NO. 7 AERIAL EXHIBIT OF SSA BOUNDARIES

27

28 EXHIBIT F VILLAGE OF PINGREE GROVE SSA NO. 7 SPECIAL TAX ROLL AND REPORT

29 VILLAGE OF PINGREE GROVE SPECIAL SERVICE AREA NUMBER SEVEN SPECIAL TAX ROLL AND REPORT MAY 1, 2006 Prepared for VILLAGE OF PINGREE GROVE 14 N 042 Reinking Road Pingree Grove, IL (847) Prepared by DAVID TAUSSIG & ASSOCIATES, INC Dove Street, Suite 600 Newport Beach, CA (949)

30 VILLAGE OF PINGREE GROVE SPECIAL SERVICE AREA NUMBER SEVEN SPECIAL TAX ROLL AND REPORT TABLE OF CONTENTS Section Page I. INTRODUCTION... 1 II. DEFINITIONS... 1 III. SPECIAL SERVICE AREA DESCRIPTION... 4 A. BOUNDARIES OF SSA NO B. ANTICIPATED LAND USES... 4 IV. SPECIAL SERVICES... 4 A. GENERAL DESCRIPTION... 5 B. ESTIMATED COSTS... 5 C. ALLOCATION... 6 D. ALTERNATIVES, MODIFICATIONS, AND/OR SUBSTITUTIONS V. BOND ASSUMPTIONS VI. MAXIMUM PARCEL SPECIAL TAX A. DETERMINATION B. APPLICATION C. ESCALATION D. TERM E. SPECIAL TAX ROLL AMENDMENT F. OPTIONAL PREPAYMENT G. MANDATORY PREPAYMENT H. LIEN RELEASE FOR NBH 22 THROUGH VII. ABATEMENT AND COLLECTION A. ABATEMENT B. COLLECTION PROCESS C. ADMINISTRATIVE REVIEW VIII. AMENDMENTS List of Exhibits Exhibit A Special Tax Roll Exhibit B Prepayment of the Maximum Parcel Special Tax Exhibit C Engineer's Opinion of Probable Costs Exhibit D Maps of Neighborhoods

31 I. INTRODUCTION Pursuant to the provisions of the Act and in accordance with the "Establishing Ordinance" being Ordinance No. passed by the Board of Trustees of the Village of Pingree Grove, County of Kane, State of Illinois, on May 1, 2006 in connection with the proceedings for Special Service Area Number Seven (hereinafter referred to as "SSA No. 7"), this Special Tax Roll and Report of SSA No. 7 (the "Report") is herewith submitted and made part of the Establishing Ordinance. II. DEFINITIONS The terms used herein shall have the following meanings: "Act" means the Special Service Area Tax Act, being 35 ILCS 200/27-5 et seq., as amended. "Administrative Expenses" means the following actual or reasonably estimated costs permitted in accordance with the Act and directly related to the administration of SSA No. 7 and the Bonds as determined by the Village or its designee; the costs of computing the Special Taxes and of preparing the amended Special Tax Roll (whether by the Village or designee thereof or both); the costs of collecting the Special Taxes (whether by the Village, the County, or otherwise); the costs of remitting the Special Taxes to the fiscal agent and/or trustee for any Bonds; the costs of the fiscal agent and/or trustee (including its legal counsel) in the discharge of the duties required of it under the Bond Indenture; the costs of the Village or designee in computing the amount of rebatable arbitrage, if any; the costs of the Village or designee in applying for and maintaining ratings of the Bonds; the costs of the Village or designee in complying with the disclosure requirements of applicable federal and state securities laws and of the Act, including, but not limited to, public inquiries regarding the Special Taxes; the costs associated with the release of funds from any escrow account or funds held pursuant to the Bond Indenture; and any termination payments owed by the Village in connection with any guaranteed investment contract, forward purchase agreement, or other investment of funds held under the Bond Indenture. Administrative Expenses shall also include amounts advanced by the Village for any administrative purpose of SSA No. 7 including the costs of computing Special Tax Bond Prepayment amounts, recording of lien satisfaction or other notices related to a Special Tax Bond Prepayment or Mandatory Special Tax Prepayment, discharge or satisfaction of Special Taxes; and the costs of commencing and pursuing to completion any foreclosure action arising from and pursuing the collection of delinquent Special Taxes and the reasonable fees of legal counsel to the Village incurred in connection with all of the foregoing. "Board" means the Village President and the Board of Trustees of the Village of Pingree Grove, having jurisdiction over SSA No. 7. "Bond Indenture" means the trust indenture and any supplemental indentures between the Village and the trustee named therein authorizing the issuance of the Bonds. Special Tax Roll and Report Page 1 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

32 "Bonds" means any bonds or other debt, including refunding bonds, whether in one or more series, issued by the Village and secured by the Maximum Parcel Special Tax for SSA No. 7, the proceeds of which will be used to finance inter alia, all or a portion of the public improvements authorized pursuant to the Establishing Ordinance. "Calendar Year" means the twelve-month period starting January 1 and ending December 31. "Consultant" means the designee of the Village responsible for determining the Special Taxes and assisting the Village and the County in providing for the collection of the Special Taxes, continuing disclosure, and any other administrative efforts related to SSA No. 7. "County" means the County of Kane, Illinois. "Duplex Dwelling Unit" means an attached Dwelling Unit located within a building containing two attached Dwelling Units. "Duplex Property" means all Parcels within the boundaries of SSA No. 7 on which Duplex Dwelling Units have been, may be, or are anticipated constructed as determined from Exhibit D herein, Preliminary Final Plat, Submitted Final Plat, Final Plat, or other document approved by the Village as determined by the Consultant. "Dwelling Unit" or "DU" means a residential dwelling unit. "Final Plat" means a final plat of subdivision approved by the Village and recorded with the County which creates individual single-family home lots, individual duplex lots and/or individual townhome building lots. "Mandatory Special Tax Prepayment" means the Special Tax Bond Prepayment required pursuant to Section VI.G herein and calculated pursuant to Exhibit B herein. "Maximum Parcel Special Tax" means the maximum special tax, determined in accordance with Section VI that can be collected in any Calendar Year on any Parcel. "Maximum Parcel Special Taxes" means the amount determined by multiplying the actual or anticipated number of Single-family Dwelling Units, Duplex Dwelling Units, and Townhome Dwelling Units, in accordance with Section VI.B herein, by the applicable Maximum Parcel Special Tax. "NBH 7 through 15" means all property located within the neighborhoods 7, 8, 9, 10, 11, 12, 13, 14, and 15 as shown in Exhibit D herein. "NBH 22 through 25" means all property located within the neighborhoods 22, 23, 24, and 25 as shown in Exhibit D herein. Special Tax Roll and Report Page 2 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

33 "Parcel" means a lot, parcel, and/or other interest in real property within the boundaries of SSA No. 7 to which a permanent index number ("PIN") is assigned as determined from a PIN Map or the assessment roll. "Partial Special Tax Bond Prepayment" means that amount required to partially prepay the Maximum Parcel Special Tax computed pursuant to Exhibit B herein. "Preliminary Plat" means a preliminary subdivision plat for NBH 22 through 25 approved by the Village. "PIN Map" means an official map of the County Mapping Department or other authorized County official designating lots, parcels, and/or other interests in real property by permanent index number. "Residential Property" means all Parcels within the boundaries of SSA No. 7 on which Dwelling Units have been, may be, or are anticipated constructed as determined from Exhibit D herein, Preliminary Plat, Submitted Final Plat, Final Plat, or other document approved by the Village as determined by the Consultant. "Single-family Dwelling Unit" means a detached Dwelling Unit. "Single-family Property" means all Parcels within the boundaries of SSA No. 7 on which Single-family Dwelling Units have been, may be, or are anticipated constructed as determined from Exhibit D herein, Preliminary Plat, Submitted Final Plat, Final Plat, or other document approved by the Village as determined by the Consultant. "Special Tax" means the special tax extended in each Calendar Year on each Parcel. The Special Tax for a Parcel cannot exceed the Maximum Parcel Special Tax for such Parcel as calculated pursuant to Section VI. "Special Tax Bond Prepayment" means that amount required to prepay the Maximum Parcel Special Tax computed pursuant to Exhibit B herein in order to fully release the lien of the Maximum Parcel Special Tax. "Special Tax Requirement" means that amount determined by the Village or its designee as required in any Calendar Year to pay: (1) the Administrative Expenses, (2) debt service on any Bonds, (3) reasonably anticipated delinquent Special Taxes, (4) any amount required to replenish any reserve fund established in connection with such Bonds, (5) the costs of credit enhancement and fees for instruments that serve as the basis of a reserve fund in lieu of cash related to any such Bonds, and less (6) available funds as directed under the Bond Indenture. "Special Tax Roll" means the Special Tax Roll included herein as Exhibit A, as may be amended pursuant to Section VI.E. "SSA No. 1" means the special service area that has been established through Ordinance No adopted by the Board of Trustees of the Village of Pingree Grove, County of Kane, State of Illinois on April 4, Special Tax Roll and Report Page 3 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

34 "SSA No. 2" means the special service area that has been established through Ordinance No adopted by the Board of Trustees of the Village of Pingree Grove, County of Kane, State of Illinois on June 20, "Submitted Final Plat" means a final plat of subdivision submitted to the Village for approval but not recorded with the County and which upon recordation with the County will create individual single-family home lots, individual duplex lots, and/or individual townhome building lots. The most recent Submitted Final Plats, as applicable, as of the date of this Report are attached as Exhibit D. "Townhome Dwelling Unit" means an attached Dwelling Unit located within a building containing three or more attached Dwelling Units. "Townhome Property" means all Parcels within the boundaries of SSA No. 7 on which townhome Dwelling Units have been, may be, or are anticipated constructed as determined from Exhibit D herein, Preliminary Plat, Submitted Final Plat, Final Plat, or other document approved by the Village as determined by the Consultant. "Village" means the Village of Pingree Grove, County of Kane, State of Illinois. III. SPECIAL SERVICE AREA DESCRIPTION A. BOUNDARIES OF SSA NO. 7 SSA No. 7 consists of approximately three hundred eighty-five (385) acres of land generally located south of U.S. Route 72, north of Illinois Route 20, and east of Illinois Route 47, the legal description for which is attached as Exhibit C of the Establishing Ordinance. The Residential Property will be located within NBH 7 through 15 and NBH 22 through 25. B. ANTICIPATED LAND USES SSA No. 7 is anticipated to consist of six hundred seventy-eight (678) Singlefamily Dwelling Units, one hundred sixty-four (164) Duplex Dwelling Units and four hundred sixty-seven (467) Townhome Dwelling Units. IV. SPECIAL SERVICES SSA No. 7 has been established to finance certain special services conferring special benefit thereto and which are in addition to the municipal services provided to the Village as a whole. A general description, estimated cost, and allocation of these special services are set forth on the following page. Special Tax Roll and Report Page 4 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

35 A. GENERAL DESCRIPTION 1. AUTHORIZED IMPROVEMENTS The special services that are financed by SSA No. 7 consist of certain public improvements with appurtenances and appurtenant work in connection therewith necessary to serve SSA No. 7 (hereinafter referred to as the "Authorized Improvements"). The Authorized Improvements are generally described as follows: The cost of engineering, soil testing and appurtenant work, mass grading and demolition, storm water management facilities, storm drainage systems and storm sewers, site clearing and tree removal, public water facilities, sanitary sewer facilities, erosion control measures, roads, streets, curbs, gutters, street lighting, traffic controls, sidewalks, equestrian paths and related street improvements, and equipment and materials necessary for the maintenance thereof, landscaping, wetland mitigation and tree installation, costs for land and easement acquisitions relating to any of the foregoing improvements, required tap-on and related fees for water or sanitary sewer services and other eligible costs. 2. SSA FUNDED IMPROVEMENTS SSA No. 7 is anticipated to fund the following improvements (subject to alternatives, modifications, and/or substitutions as described in Section IV. D below): Local Improvements: o Sanitary sewer, water, road, and storm water management facilities constructed within and serving groups of certain neighborhoods within SSA No. 7; and Regional Improvements: o SSA No. 7's allocable share of an existing regional water treatment plant, water tower, and deep wells; the allocable portion of an existing regional sanitary sewer treatment plant, storage lagoon, and spray irrigation system benefiting NBH 22 through 25; and the allocable portion of the acquisition of detention basin land benefiting NBH 7 through 15; the acquisition of detention basin land benefiting NBH 22 through 25. B. ESTIMATED COSTS The estimated costs for the Authorized Improvements are shown in Table 1 on the following page. The local improvement cost estimate is based on the developer's engineer's estimate of probable costs 1 (the "Engineer's Opinion of Probable 1 Prepared by DRH Cambridge Homes, Inc. dated April 26, Special Tax Roll and Report Page 5 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

36 Costs"), a copy of which is attached as Exhibit C. The regional improvements are completed and the amounts shown in Table 1 reflect actual costs. TABLE 1 ESTIMATED COSTS FOR AUTHORIZED IMPROVEMENTS PUBLIC IMPROVEMENT Local Improvements COSTS OF AUTHORIZED IMPROVEMENTS Sanitary Sewer Facilities $4,105,503 Water Facilities $3,483,544 Storm Sewer Facilities $4,156,947 Road Facilities $9,571,576 Engineering and Surveying $1,574,979 Excavation and Grading $1,278,998 Subtotal Local Improvements $24,171,546 Regional Improvements Water Facilities $7,700,000 Detention Basins (NBH 7 through 15) $3,429,125 Detention Basins (NBH 22 through 25) $547,792 Sanitary Sewer Facilities $21,300,000 Subtotal Regional Improvements $32,976,917 GRAND TOTAL $57,148,463 C. ALLOCATION Special taxes levied pursuant to the Act must bear a rational relationship between the amount of the special tax levied against each Parcel within SSA No. 7 and the special service benefit rendered. Therefore, the public improvements anticipated financed by SSA No. 7 as shown in Table 1 have been allocated in accordance with the benefit rendered to the property therein, with benefit estimated a function of (i) the service or benefit area for said improvements and (ii) the relative capacity for said improvements reserved for or used by properties within the benefit area. A discussion of the relevant benefit area(s) and measures of public facilities usage is detailed below. Special Tax Roll and Report Page 6 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

37 1. BENEFIT AREA Generally, the local improvements benefit certain groups of neighborhoods within SSA No. 7 while the benefited area for the regional improvements encompasses an area greater than SSA No. 7. The benefit areas for these improvements are discussed in more detail below. a. LOCAL IMPROVEMENTS There are three distinct benefit areas for the local improvements corresponding to the Single-Family Property, Duplex Property, and Townhome Property. The improvements for each benefit area include the local sewer, water, storm sewer, and road facilities shown in the Engineer's Opinion of Probable Costs and are located within and bring the special services to the Dwelling Units within each such group of Residential Property. b. REGIONAL IMPROVEMENTS The existing regional water system (which includes a treatment plant, deep wells, and water tower) and regional sewer system (which includes the treatment facility, storage lagoon, and spray irrigation system) has a capacity to serve 10,000 P.E. Eighty percent (80%), or 8,000 P.E., of the regional water and sewer system is reserved for the Cambridge Lakes Project which includes SSA No. 7, SSA No. 2, other residential property and commercial property. The remaining twenty percent (20%), or 2,000 P.E., is available on a first-come, first serve basis. However, it is expected that the Cambridge Lakes Project will utilize this remaining twenty percent. The detention basin land acquisition costs for NBH 7 through 15, as identified in Exhibit D herein, pertain to a storm water management system that serves NBH 7 through 15 as well as SSA No. 2. NBH 22 through 25 are served by the detention basins located within such neighborhoods. The allocation of these costs is discussed in Section IV.C PUBLIC FACILITY USAGE Once the benefit area has been established, the special services may be allocated among the various properties within such area in accordance with use. As is discussed in the following sections, commonly accepted measures for public facility usage indicate that the benefit conferred by the Authorized Improvements applies uniformly by land use type. Special Tax Roll and Report Page 7 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

38 a. SANITARY SEWER AND WATER USAGE The primary determinant of sanitary sewer and water usage is the applicable population equivalent, or P.E. Household population is the criteria commonly used to project sewer and water service demand. Wastewater Engineering, Third Edition indicates that residential wastewater flow rates are typically determined on the basis of population density and the average per capita contribution of wastewater. The Illinois Environmental Protection Agency's criteria for water storage and distribution systems assume an everyday use equal to 50 gallons per day per person. In addition, an emergency capacity is set at 50 gallons per day per person. This equates to 350 gallons per day for each single-family home given the applicable IEPA P.E. factor of 3.5 for single-family homes. The IEPA does not publish P.E. factors for Duplex Dwelling Units or Ttownhome Dwelling Units. However, IEPA indicates that the published P.E. factors for apartments may be used to estimate P.E. for duplexes or townhomes. P.E. factors for apartments range from 1.5 to 3.0 depending upon bedroom count. As each Duplex Dwelling Unit and Townhome Dwelling Unit is anticipated to have two or three bedrooms, the P.E. factor of 3.0 for two to threebedroom apartments is used. Table 2 on the following page shows the population equivalent and equivalent units by land use. Special Tax Roll and Report Page 8 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

39 TABLE 2 SEWER AND WATER USAGE FACTORS P.E. AND EQUIVALENT UNITS Land Use (A) Dwelling Units (B) P.E. (C) Total P.E. 1 (D) Equivalent Unit (E) Total Equivalent Units 2, 3 NBH 7 through 15 (1) Single-Family Property (DU) , (2) Duplex Property (DU) (3) Townhome Property (DU) , NBH 22 through 25 (4) Single-Family Property (DU) (5) Duplex Property (DU) (6) Townhome Property (DU) Grand Total 3 1,309 4, , P.E. factor multiplied by applicable number of dwelling units. 2 Equivalent unit factor multiplied by applicable number of dwelling units. 3 Calculations may vary slightly due to rounding. 4 D1 / D1, 5 D2 / D1, 6 D3 / D1, 7 D4 / D1, 8 D5 / D1, 9 D6 / D1 b. STORM SEWER USAGE Storm sewer facilities are sized based upon estimated storm flows which vary with the size of the tributary drainage area, slope, soil type, antecedent runoff condition, and impervious ground cover. In its "Urban Hydrology for Small Watersheds: TR-55" (the "TR-55 Manual"), the United States Department of Agriculture indicates average "runoff curve numbers" for purposes of measuring storm flows or runoff. The runoff curve equation estimates storm runoff given a particular volume of rainfall. The runoff curve numbers for fully developed urban areas indicated in the TR-55 Manual vary by land use type, impervious area, and hydrologic soil group. Assuming generally uniform antecedent runoff and hydrologic soil conditions, storm flows will tend to vary with land use and the associated impervious area. As the respective Dwelling Units within the Single-family Property, Duplex Property, and Townhome Property are anticipated to have approximately the same impervious area, the storm flow and therefore usage of the storm sewer system is not expected to vary in any material amount from Single-family Dwelling Unit to Single-family Dwelling Unit, Duplex Dwelling Special Tax Roll and Report Page 9 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

40 Unit to Duplex Dwelling Unit, or from Townhome Dwelling Unit to Townhome Dwelling Unit. Impervious ground coverage factors for residential development vary by development density or the number of dwelling units per gross acre, with gross acreage being exclusive of open space. The gross density for the Single-family Property is approximately three Dwelling Units to an acre. Multiplying 14,520 (43,560 square feet in an acre divided by 3) by the TR-55 Manual impervious ground coverage factor of thirty percent (30%) for this development density results in estimated impervious ground area per Singlefamily Dwelling Unit of 4,356 square feet per lot. The gross density for the Duplex Property is approximately four Dwelling Units to the acre. Multiplying 10,890 (43,560 square feet in an acre divided by 4) by the TR-55 Manual impervious ground coverage factor of thirty-eight percent (38%) for this development density results in estimated impervious area of 4,138 square feet per Duplex Dwelling Unit. The TR-55 Manual specifies an impervious ground coverage factor for townhome development of sixty-five percent (65%) assuming a gross density of eight Dwelling Units to the acre. Multiplying 5,445 (43,560 square feet in an acre divided by 8) by 65% results in an impervious ground coverage of 3,539 square feet for each Townhome Dwelling Unit. Table 3 on the following page shows the impervious ground area factors by land use. Special Tax Roll and Report Page 10 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

41 TABLE 3 STORM WATER MANAGEMENT USAGE FACTORS IMPERVIOUS AREA AND EQUIVALENT UNITS NBH 7 through 15 Land Use (A) (B) (C) Impervious Area 1 (F) (G) Dwelling Units Lot Size Per DU Coverage Factor (D) Per DU (E) Total Equivalent Unit Total Equivalent Units 2, 3 (1) Single-Family Property (DU) , % 4,356 2,413, (2) Duplex Property (DU) , % 4, , (3) Townhome Property (DU) 335 5, % 3,539 1,185, NBH 22 through 25 (4) Single-Family Property (DU) , % 4, , (5) Duplex Property (DU) 26 10, % 4, , (6) Townhome Property (DU) 132 5, % 3, , Grand Total 3 1,309 5,284,863 1, Impervious area per dwelling unit for each land use is computed by multiplying coverage factor by lot size per dwelling unit. 2 Equivalent unit factor multiplied by applicable number of dwelling units. 3 Calculations may vary slightly due to rounding. 4 F1 / F1, 5 F2 / F1, 6 F3 / F1, 7 F4 / F1, 8 F5 / F1, 9 F6 / F1 Special Tax Roll and Report Page 11 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

42 c. ROAD USAGE Road usage is typically computed on the basis of anticipated trip generation. The Institute of Traffic Engineers publication Trip Generation Sixth Edition, indicates average weekday trips per Single-family Dwelling Unit and Townhome Dwelling Unit of 9.57 and 5.86, respectively. As with P.E. factors, trip factors for duplex dwelling units are not published in Trip Generation, Sixth Edition. However, Trip Generation, Sixth Edition states that the number of vehicles and residents have a high correlation with the average weekday trips for residential land uses. As vehicle counts are obviously unknown at present, household size is used to estimate the average weekday trips for Duplex Dwelling Units. Multiplying the population ratio between a Duplex Dwelling Unit and a Single-family Dwelling Unit (i.e., 3.0 divided by 3.5) by the average weekday trips for single-family homes yields an estimated average weekday trips of 8.20 for a Duplex Dwelling Unit. Table 4 below shows the trip ends and equivalent units by land use. TABLE 4 Land Use ROAD USAGE FACTORS TRIP ENDS AND EQUIVALENT UNITS (A) (B) (C) Dwelling Units Trip Ends Total Trip Ends 1 (D) Equivalent Unit (E) Total Equivalent Units 2, 3 NBH 7 through 15 (1) Single-Family Property (DU) , (2) Duplex Property (DU) , (3) Townhome Property (DU) , NBH 22 through 25 (4) Single-Family Property (DU) , (5) Duplex Property (DU) (6) Townhome Property (DU) Grand Total 3 1,309 10, , Trip ends multiplied by applicable number of dwelling units. 2 Equivalent unit factor multiplied by applicable number of dwelling units. 3 Calculations may vary slightly due to rounding. 4 D1 / D1, 5 D2 / D1, 6 D3 / D1, 7 D4 / D1, 8 D5 / D1, 9 D6 / D1 Special Tax Roll and Report Page 12 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

43 3. ALLOCATED COSTS a. LOCAL IMPROVEMENTS As the allocation factors discussed in Section IV.C are uniform within each land use type (i.e. the allocation factors applicable to Single-family Property are the same for each Single-family Dwelling Unit, the allocation factors applicable to Duplex Property are the same for each Duplex Dwelling Unit, and the allocation factors applicable to Townhome Property are the same for each Townhome Dwelling Unit), the benefit conferred to each Dwelling Unit is calculated by dividing the local improvements for Singlefamily Property, Duplex Property, and Townhome Property from Table 5 by the respective number of Dwelling Units. TABLE 5 AUTHORIZED LOCAL IMPROVEMENTS COSTS BY LAND USE PUBLIC IMPROVEMENT SINGLE- FAMILY PROPERTY DUPLEX PROPERTY TOWNHOME PROPERTY GRAND TOTAL Sanitary Sewer Facilities $2,615,593 $514,484 $975,426 $4,105,503 Water Facilities $2,177,766 $358,940 $946,838 $3,483,544 Storm Sewer Facilities $2,845,315 $476,262 $835,370 $4,156,947 Roadway Facilities $6,420,933 $1,261,431 $1,889,211 $9,571,576 Engineering and Surveying $1,003,086 $231,351 $340,541 $1,574,979 Excavation and Grading $857,416 $182,806 $238,776 $1,278,998 GRAND TOTAL $15,920,109 $3,025,274 $5,226,163 $24,171,546 NUMBER OF DUS ,309 TOTAL COST / DWELLING UNIT $23, $18, $11, NA b. REGIONAL IMPROVEMENTS 1. Water and Sewer Facilities To determine the allocable percentage of the regional water system to SSA No. 7, the total P.E. for SSA No. 7 is divided by the total capacity of the regional water system of 10,000 P.E., or 42.66% (4,266 P.E. divided by 10,000 P.E.). Applying 42.66% to the regional water system cost of $7,700,000 yields an amount allocable to SSA No. 7 of Special Tax Roll and Report Page 13 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

44 $3,284,820. The allocation between the land uses in SSA No. 7 is shown in Table 6 below. To determine the allocable percentage of the regional sewer system to NBH 22 through 25, the total P.E. for NBH 22 through 25 is divided by the total capacity of the sewer system of 10,000 P.E., or 9.08% ( P.E. divided by 10,000.0 P.E.). Applying 9.08% to the regional sewer system cost of $21,300,000 yields an amount allocable to SSA No. 7 of $1,934,040. The allocation between the land uses in NBH 22 through 25 is shown in Table 7 on the following page. Note, the portion of the regional sewer system allocable to NBH 7 through 15 has been funded through SSA No. 1 and is not eligible for financing in SSA No. 7. TABLE 6 (A) Land Use NBH 7 through 15 ALLOCATION OF REGIONAL WATER FACILITIES (B) Dwelling Units (C) Equivalent Units 1 (D) Allocated Cost (E) Allocated Cost Per DU (1) Single-Family Property (DU) $1,493,140 2 $2, (2) Duplex Property (DU) $318,750 3 $2, (3) Townhome Property (DU) $773,778 4 $2, NBH 22 through 25 (4) Single-Family Property (DU) $334,205 5 $2, (5) Duplex Property (DU) $60,054 6 $2, (6) Townhome Property (DU) $304,892 7 $2, (7) Grand Total 14 1,309 1, $3,284, From Table 2; $3,284,820 / C7 * C1; $3,284,820 / C7 * C2; $3,284,820 / C7 * C3; $3,284,820 / C7 * C3; $3,284,820 / C7 * C3; $3,284,820 / C7 * C3; D1 / B1; D2 / B2; D3 / B3; D4 / B4; D5 / B5; D6 / B6; 14 Calculations may vary slightly due to rounding. Special Tax Roll and Report Page 14 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

45 TABLE 7 NBH 22 through 25 (A) Land Use ALLOCATION OF REGIONAL SEWER FACILITIES (B) Dwelling Units (C) Equivalent Units 1 (D) Allocated Cost (E) Allocated Cost Per DU (1) Single-Family Property (DU) $924,500 2 $7, (2) Duplex Property (DU) $166,127 3 $6, (3) Townhome Property (DU) $843,413 4 $6, (4) Grand Total $1,934,040 1 From Table 2; 2 $1,934,040 / C4 * C1; 3 $1,934,040 / C4 * C2; 4 $1,934,040 / C4 * C3; 5 D1 / B1; 6 D2 / B2; 7 D3 / B3; 8 Calculations may vary slightly due to rounding. 2. Detention Basins a. NBH 7 Through 15 The total land acquisition cost of the detention basins serving NBH 7 through 15 and SSA No. 2 (which includes an elementary school and clubhouse) is $3,429,125. The amount that is allocable to NBH 7 through 15 is first determined by calculating the percentage of the impervious area of NBH 7 through 15 to the total impervious area of the benefiting properties. The total impervious area is calculated by multiplying the aggregate number of Single-family Dwelling Units (1,170 DUs), Duplex Dwelling Units (220 DUs), and Townhome Dwelling Units (753 DUs) located within NBH 7 through 15 and SSA No. 2 by the corresponding impervious area per Dwelling Unit for the residential land uses, as discussed in Section IV.C.2.b above. Such calculation results in an aggregate impervious area for residential property of 8,671,979 square feet. The impervious areas for the elementary school and clubhouse have been provided by the developer's engineer and are estimated at 555,390 square feet and 114,998 square feet, respectively. Aggregating the impervious area of the residential property, elementary school and clubhouse yields a total impervious area of 9,342,368 square feet. Applying 44.63% (or 4,169,944 square feet for NBH 7 through 15 divided by 9,342,368 square feet of total impervious area) to the total acquisition cost of Special Tax Roll and Report Page 15 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

46 $3,429,125 yields an allocable amount of $1,530,582 to NBH 7 through 15. Of this, $1,508,661 is being funded through SSA No. 7. The allocation between the land uses in NBH 7 through 15 is shown in Table 8 below. TABLE 8 (A) Land Use NBH 7 through 15 ALLOCATION OF DETENTION BASIN LAND ACQUISITION NBH 7 THROUGH 15 (B) Dwelling Units (C) Equivalent Units 1 (D) Allocated Cost (E) Allocated Cost Per DU (1) Single-Family Property (DU) $872,937 2 $1, (2) Duplex Property (DU) $206,574 3 $1, (3) Townhome Property (DU) $429,150 4 $1, (4) Grand Total 8 1, $1,508,661 1 From Table 3; 2 $1,508,661 / C4 * C1; 3 $1,508,661 / C4 * C2; 4 $1,508,661 / C4 * C3; 5 D1 / B1; 6 D2 / B2; 7 D3 / B3; 8 Calculations may vary slightly due to rounding. b. NBH 22 Through 25 NBH 22 through 25 is served by the detention basin within such neighborhoods. The allocation of the land acquisition costs of such detention basins is shown in Table 9 below. TABLE 9 (A) Land Use NBH 22 through 25 ALLOCATION OF DETENTION BASIN LAND ACQUISITION NBH 22 THROUGH 25 (B) Dwelling Units (C) Equivalent Units 1 (D) Allocated Cost (E) Allocated Cost Per DU (1) Single-Family Property (DU) $265,320 2 $2, (2) Duplex Property (DU) $52,850 3 $2, (3) Townhome Property (DU) $229,622 4 $1, (4) Grand Total $547,792 1 From Table 3; 2 $547,792 / C4 * C1; 3 $547,792 / C4 * C2; 4 $547,792 / C4 * C3; 5 D1 / B1; 6 D2 / B2; 7 D3 / B3; 8 Calculations may vary slightly due to rounding. Special Tax Roll and Report Page 16 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

47 Aggregating the local improvements and the regional improvements yields the total Authorized Improvements for each land use in SSA No. 7 as shown in Tables 10 and 11 on the following pages. The Authorized Improvements that are not financed through SSA No. 7 will be funded by either the developer or have already been funded through a different special service area. Special Tax Roll and Report Page 17 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

48 PUBLIC IMPROVEMENTS Local Improvements SINGLE-FAMILY PROPERTY TABLE 10 COMBINED LOCAL IMPROVEMENTS AND REGIONAL IMPROVEMENTS FOR NBH 7 THROUGH 15 TOTAL COSTS DUPLEX PROPERTY TOWNHOME PROPERTY SINGLE-FAMILY PROPERTY 1 DWELLING UNIT COSTS DUPLEX PROPERTY 2 TOWNHOME PROPERTY 3 Sanitary Sewer Facilities 4 $2,137,225 $432,920 $699,717 $3,858 $3,137 $2,089 Water Facilities 4 $1,779,473 $302,035 $679,209 $3,212 $2,189 $2,027 Storm Water Management Facilities 4 $2,324,933 $400,757 $599,249 $4,197 $2,904 $1,789 Road Facilities 4 $5,246,603 $1,061,448 $1,335,216 $9,470 $7,692 $4,045 Engineering and Surveying 4 $819,631 $194,674 $244,286 $1,479 $1,411 $729 Excavation and Grading 4 $700,603 $153,824 $171,285 $1,265 $1,115 $511 Subtotal Local Improvements 5 $13,008,467 $2,545,657 $3,748,960 $23,481 $18,447 $11,191 Regional Improvements Water $1,493,140 $318,750 $773,778 $2,695 $2,310 $2,310 Sanitary Sewer $0 $0 $0 $0 $0 $0 Detention Basins (NBH 7 through 15) $873,090 $206,610 $428,961 $1,576 $1,497 $1,280 Subtotal Regional Improvements $2,366,230 $525,361 $1,202,739 $4,271 $3,807 $3,590 GRAND TOTAL 5 $15,374,697 $3,071,018 $4,951,700 $27,752 $22,254 $14,781 SSA NO. 7 FUNDED 5 $10,526,000 $1,518,000 $3,685,000 $19,000 $11,000 $11,000 OTHER SSA FINANCING OR DEVELOPER FUNDED 5 $4,848,697 $1,553,018 $1,266,700 $8,752 $11,254 $3,781 1 Computed by dividing the Total Single-Family Property Costs by 554, the anticipated number of Single-Family Dwelling Units. 2 Computed by dividing the Total Duplex Property Costs by 138, the anticipated number of Duplex Dwelling Units. 3 Computed by dividing the Total Townhome Property Costs by 335, the anticipated number of Townhome Dwelling Units. 4 Includes construction management fee of seven percent (7%). 5 Any differences in amounts are due to rounding. Special Tax Roll and Report Page 18 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

49 PUBLIC IMPROVEMENTS Local Improvements SINGLE-FAMILY PROPERTY TABLE 11 COMBINED LOCAL IMPROVEMENTS AND REGIONAL IMPROVEMENTS FOR NBH 22 THROUGH 25 TOTAL COSTS DUPLEX PROPERTY TOWNHOME PROPERTY SINGLE-FAMILY PROPERTY 1 DWELLING UNIT COSTS DUPLEX PROPERTY 2 TOWNHOME PROPERTY 3 Sanitary Sewer Facilities 4 $478,368 $81,565 $275,709 $3,858 $3,137 $2,089 Water Facilities 4 $398,293 $56,905 $267,629 $3,212 $2,189 $2,027 Storm Water Management Facilities 4 $520,382 $75,505 $236,122 $4,197 $2,904 $1,789 Road Facilities 4 $1,174,330 $199,983 $533,995 $9,470 $7,692 $4,045 Engineering and Surveying 4 $183,455 $36,678 $96,256 $1,479 $1,411 $729 Excavation and Grading 4 $156,814 $28,981 $67,491 $1,265 $1,115 $511 Subtotal Local Improvements 5 $2,911,642 $479,617 $1,477,202 $23,481 $18,447 $11,191 Regional Improvements Water $334,205 $60,054 $304,892 $2,695 $2,310 $2,310 Sanitary Sewer $924,500 $166,127 $843,413 $7,456 $6,389 $6,389 Detention Basin (NBH 22 through 25) $265,320 $52,850 $229,622 $2,140 $2,033 $1,740 Subtotal Regional Improvements $1,524,025 $279,031 $1,377,926 $12,291 $10,732 $10,439 GRAND TOTAL 5 $4,435,668 $758,648 $2,855,129 $35,772 $29,179 $21,630 SSA NO. 7 FUNDED 5 $2,356,000 $286,000 $1,452,000 $19,000 $11,000 $11,000 OTHER SSA FINANCING OR DEVELOPER FUNDED 5 $2,079,668 $472,648 $1,403,129 $16,772 $18,179 $10,630 1 Computed by dividing the Total Single-Family Property Costs by 124, the anticipated number of Single-Family Dwelling Units. 2 Computed by dividing the Total Duplex Property Costs by 26, the anticipated number of Duplex Dwelling Units. 3 Computed by dividing the Total Townhome Property Costs by 132, the anticipated number of Townhome Dwelling Units. 4 Includes construction management fee of seven percent (7%). 5 Any differences in amounts are due to rounding. Special Tax Roll and Report Page 19 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

50 D. ALTERNATIVES, MODIFICATIONS, AND/OR SUBSTITUTIONS The description of the Authorized Improvements, as set forth herein, is general in nature. The final description, specifications, location, and costs of improvements and facilities will be determined upon the preparation of final plans and specifications and completion of the improvements. The final plans may show substitutes, in lieu or modifications to the Authorized Improvements in order to accomplish the works of improvements, and any substitution, increase, or decrease to the amount of public improvements financed shall not be a change or modification in the proceedings as long as the allocation of the Authorized Improvements using the preceding methodology results in the same ratio of funded Authorized Improvements between the land use types, as established in Section VI.A below. V. BOND ASSUMPTIONS It is anticipated that certain of the Authorized Improvements will be financed through the issuance of a single series of bonds. Total authorized bonded indebtedness is $34,000,000. Bonds in the approximate amount of $27,000,000 are anticipated issued in May Issuance costs are estimated approximately two and one-half percent (2.5%) of the principal amount of the bonds. The bond issue will include a reserve fund of approximately ten percent (10.0%) of the original principal amount of the bonds and approximately thirty-four months of capitalized interest. The term of the bonds is estimated at 30 years, with principal amortized over a period of approximately 27 years. Annual debt service payments will increase approximately one and one-half percent (1.50%) annually. The final sizing of the bonds may be modified as appropriate to meet the objectives of the financing and prevailing bond market conditions. These modifications may include, but are not limited to, changes in the following: Bond timing, phasing, and/or escrows; Capitalized interest period; Principal amortization (i.e., bond term and annual debt service payment); Reserve fund size and form; and Coupon rates. Therefore, the actual bonded indebtedness, and consequently the amount of Authorized Improvements financed by SSA No. 7, may increase or decrease depending upon these variables. VI. MAXIMUM PARCEL SPECIAL TAX A. DETERMINATION When multiple land uses are anticipated, the Maximum Parcel Special Tax is a function of the (i) relative amounts of the Authorized Improvement costs funded for such land uses by the SSA and (ii) the revenues required to fund the sum of Special Tax Roll and Report Page 20 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

51 the estimated (i) maximum annual interest and principal payments on the Bonds, net of projected earnings on the reserve fund, and (ii) contingency for delinquent Special Taxes, and (iii) estimated Administrative Expenses. In order to measure the relative difference in public improvement costs for each land use type, Equivalent Dwelling Unit ("EDU") factors have been calculated. A Single-family Dwelling Unit is deemed the typical residential unit and is assigned an EDU factor of The EDU factor for Duplex Dwelling Units and Townhome Dwelling Units is equal to the ratio of the funded Authorized Improvements for each land use category to the funded Authorized Improvements for Single-family Property Dwelling Units. EDUs are shown in Table 12 below. TABLE 12 EDU FACTORS COST/UNIT EDU FACTOR DWELLING UNITS EDUS Single-family Dwelling Unit $19, units Duplex Dwelling Unit $11, units Townhome Dwelling Unit $11, units Total 1,309 units 1, The derivation of the Maximum Parcel Special Tax is shown in Table 13 below. TABLE 13 MAXIMUM PARCEL SPECIAL TAX (LEVIED CALENDAR YEAR 2007 / COLLECTED CALENDAR YEAR 2008) PER DWELLING UNIT TOTAL SINGLE- FAMILY PROPERTY DUPLEX PROPERTY TOWNHOME PROPERTY Required Revenues $2,172,535 $1,410,918 $197,946 $563,663 EDU Factor NA Number of EDUs 1, Maximum Parcel Special Tax / EDU* (Required Revenues / Number of EDUs) Maximum Parcel Special Tax / DU* (Required Revenues / EDU x EDU Factor) $2,081 $2,081 $2,081 $2,081 NA $2,081 $1,207 $1,207 *s have been rounded to the nearest dollar. Special Tax Roll and Report Page 21 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

52 The Maximum Parcel Special Tax per EDU is computed by dividing the required revenues by the number of EDUs. Multiplying this amount by the applicable EDU factor yields the Maximum Parcel Special Tax for Single-family Property, Duplex Property and Townhome Property. Therefore, the Maximum Parcel Special Taxes are weighted in proportion to the allocation of funded Authorized Improvements as shown in Section IV.C, and consequently the amount of the Maximum Parcel Special Tax bears a rational relationship to the benefit that the special services render to each Parcel within SSA No. 7 as required pursuant to the Act. B. APPLICATION Prior to the recordation of a Final Plat, the Maximum Parcel Special Tax for a Parcel of Residential Property shall be calculated by multiplying the number of Single-family Dwelling Units, Duplex Dwelling Units, or Townhome Dwelling Units for such Parcel, as determined from Exhibit D herein, from the Preliminary Plat or the Submitted Final Plat, whichever is more recent, in effect as of September 30 preceding the Calendar Year for which the Special Tax is being extended, by the applicable Maximum Parcel Special Tax determined pursuant to Table 13 increased in accordance with Section VI.C below. Subsequent to the recordation of the Final Plat, the Maximum Parcel Special Tax for a Parcel of Residential Property shall be calculated by multiplying the number of Single-family Dwelling Units, Duplex Dwelling Units, and Townhome Dwelling Units which may be constructed on such Parcel, by the applicable Maximum Parcel Special Tax determined pursuant to Table 13 increased in accordance with Section VI.C. C. ESCALATION The Maximum Parcel Special Tax that has been levied escalates one and one-half percent (1.50%) annually through and including Calendar Year 2034, rounded to the nearest dollar. Note, that while the annual increase in the Maximum Parcel Special Tax is limited to one and one-half percent (1.50%), which is consistent with the anticipated graduated payment schedule for interest and principal on the Bonds, the percentage annual change in the Special Tax may be greater depending upon actual Special Tax receipts, capitalized interest, investment earnings, and Administrative Expenses. D. TERM The Maximum Parcel Special Tax shall not be levied after Calendar Year 2034 ( collected in Calendar Year 2035). E. SPECIAL TAX ROLL AMENDMENT Each Calendar Year, in conjunction with the abatement ordinance adopted by the Village, the Village shall amend the Special Tax Roll to reflect the Maximum Parcel Special Tax applicable to any new Parcels established by the County. The Special Tax Roll and Report Page 22 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

53 amended Special Tax Roll shall be recorded with the County. F. OPTIONAL PREPAYMENT The Maximum Parcel Special Tax for any Parcel may be prepaid and the obligation of the Parcel to pay the Maximum Parcel Special Tax permanently satisfied pursuant to Section A of Exhibit B attached hereto, provided that a prepayment may be made only if there are no delinquent Special Taxes with respect to such Parcel at the time of prepayment. The Maximum Parcel Special Tax may also be prepaid in part, provided that proceeds for any such prepayment are sufficient to permit the redemption of Bonds in such amounts and maturities deemed necessary by the Consultant and in accordance with the Bond Indenture. An owner of a Parcel intending to prepay the Maximum Parcel Special Tax, either partially or in full, shall provide the Village with written notice of intent to prepay. Within 30 days of receipt of such written notice, the Village or its designee shall notify such owner of the amount of the Special Tax Bond Prepayment or the Partial Special Tax Bond Prepayment, as applicable, for such Parcel and the date through which such amount shall be valid. G. MANDATORY PREPAYMENT If at any time the Consultant determines that there has been or will be a reduction in the Maximum Parcel Special Taxes as a result of an amendment to (i) a Preliminary Plat, (ii) a revision to and resubmittal of a Submitted Final Plat, or (iii) a Final Plat, or (iv) other event which reduces the Maximum Parcel Special Taxes such that the annual debt service coverage ratio is less than one hundred ten percent (110%), then a Mandatory Special Tax Prepayment shall be calculated pursuant to Section B of Exhibit B attached hereto. Each year's annual debt service coverage ratio shall be determined by dividing (i) such year's reduced Maximum Parcel Special Taxes by (ii) the sum of the corresponding annual interest and principal payment on the Bonds plus estimated Administrative Expenses and less estimated earnings on the Reserve Fund (as such term is defined in the Bond Indenture). As required under the Bond Indenture, the Village may adopt a supplemental ordinance to provide for the levy of the Mandatory Special Tax Prepayment. Please refer to Section VII.B below for details on the collection procedure of the Mandatory Special Tax Prepayment. H. LIEN RELEASE FOR NBH 22 THROUGH 25 Upon the mandatory redemption of Bonds required pursuant to Section 4.3(b)(ii) of the Bond Indenture, the obligation to pay the Maximum Parcel Special Tax shall be deemed permanently satisfied for NBH 22 through 25 and shall not be collected thereafter from such property. The appropriate party shall also cause a satisfaction of special tax lien for NBH 22 through 25 recorded within 30 working days of such mandatory redemption. Special Tax Roll and Report Page 23 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

54 VII. ABATEMENT AND COLLECTION A. ABATEMENT On or before the last Tuesday of December of each Calendar Year, commencing with Calendar Year 2007 and for each following Calendar Year, the Board or its designee shall determine the Special Tax Requirement and the special taxes authorized by the ordinance providing for the issuance of the Bonds shall be abated to the extent the amounts so levied exceed the Special Tax Requirement. The Maximum Parcel Special Tax applicable to each Parcel shall be abated in equal percentages until the Special Taxes remaining equals the Special Tax Requirement. Abated in equal percentages means that the amount abated for each Parcel, computed as a percentage of its applicable Maximum Parcel Special Tax, is the same. B. COLLECTION PROCESS With the exception of the Mandatory Special Tax Prepayment, the Special Tax will be billed and collected by the County in the same manner and at the same time as general ad valorem property taxes. The lien and foreclosure remedies provided for in Article 9 of the Illinois Municipal Code shall apply upon the nonpayment of the Special Tax. The Board may provide for other means of collecting the Special Tax, if necessary to meet the financial obligations of SSA No. 7. The Mandatory Special Tax Prepayment shall be due prior to any development approval, subdivision of land, conveyance, or other action that results in a reduction in the Maximum Parcel Special Taxes such that the annual debt service coverage ratio is less than one hundred ten percent (110%). The Mandatory Special Tax Prepayment shall be levied against the property on which the reduction has or will occur. The Mandatory Special Tax Prepayment shall have the same sale and lien priorities as are provided for regular property taxes. A Mandatory Special Tax Prepayment shall not reduce the Maximum Parcel Special Tax for any Parcel. C. ADMINISTRATIVE REVIEW Any owner of a Parcel claiming that a calculation error has been made in the amount of the Special Tax applicable to such Parcel for any Calendar Year may send a written notice describing the error to the Consultant not later than thirty (30) days after having paid the Special Tax which is alleged in error. The Consultant shall promptly review the notice, and if necessary, meet with the property owner, consider written and oral evidence regarding the alleged error, and decide whether, in fact, such an error occurred. If the Consultant determines that an error did in fact occur and the Special Tax should be modified or changed in favor of the property owner, an adjustment shall be made in the amount of the Special Tax applicable to such Parcel in the next Calendar Year. Cash refunds Special Tax Roll and Report Page 24 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

55 VIII. AMENDMENTS shall only be made in the final Calendar Year for the Special Tax. The decision of the Consultant regarding any error in respect to the Special Tax shall be final. This Report may be amended by ordinance of the Village and, to the maximum extent permitted by the Act, such amendments may be made without further notice under the Act and without notice to owners of property within SSA No. 7 in order to (i) clarify or correct minor inconsistencies in the matters set forth herein, (ii) provide for lawful procedures for the collection and enforcement of the Special Tax so as to assure the efficient collection of the Special Tax for the benefit of the owners of the Bonds, (iii) otherwise improve the ability of the Village to fulfill its obligations to levy, extend, and collect the Special Tax and to make it available for the payment of the Bonds and Administrative Expenses, and (iv) make any change deemed necessary or advisable by the Village, provided such change is not detrimental to the owners of property subject to the Maximum Parcel Special Tax. No such amendment shall be approved by the Board if it violates any other agreement binding upon the Village and unless and until it has (i) found and determined that the amendment is necessary and appropriate and does not materially adversely affect the rights of the owners of the Bonds or the Village has obtained the consent of one hundred percent (100.00%) of the owners of the Bonds and (ii) received an opinion of a nationally recognized bond counsel to the effect that the amendment does not violate the Act, and is authorized pursuant to the terms of the Bond Indenture and this Report. K:\CLIENTS2\Pingree\District Formation\SSA 3, 7, 8\SSA Report\Pingree SSA 7 Report 8.doc Special Tax Roll and Report Page 25 Village of Pingree Grove Special Service Area Number Seven May 1, 2006

56 EXHIBIT A SPECIAL TAX ROLL

57 VILLAGE OF PINGREE SSA NO. 7 SPECIAL TAX ROLL CALENDAR YEAR 2007 THROUGH CALENDAR YEAR 2034 Levied Maximum Parcel Special Calendar Tax Per Dwelling Unit Year SFD [1] DUP [2] THM [3] 2007 $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $3, $1, $1, $3, $1, $1, $3, $1, $1, PERMANENT INDEX NUMBER SFD DUP THM SFD DUP THM SFD DUP THM $337, $94, $242, $131, $31, $159, $27, $161, $342, $95, $246, $133, $31, $161, $27, $164, $347, $96, $249, $135, $32, $164, $27, $166, $352, $98, $253, $137, $32, $166, $28, $169, $357, $99, $257, $139, $33, $169, $28, $171, $363, $101, $261, $141, $33, $171, $29, $174, $368, $102, $265, $143, $34, $174, $29, $176, $374, $104, $269, $145, $34, $176, $30, $179, $379, $106, $273, $147, $35, $179, $30, $182, $385, $107, $277, $149, $35, $182, $30, $184, $391, $109, $281, $152, $36, $184, $31, $187, $397, $110, $285, $154, $36, $187, $31, $190, $403, $112, $290, $156, $37, $190, $32, $193, $409, $114, $294, $159, $38, $193, $32, $196, $415, $115, $298, $161, $38, $196, $33, $199, $421, $117, $303, $163, $39, $199, $33, $202, $427, $119, $307, $166, $39, $202, $34, $205, $434, $121, $312, $168, $40, $205, $34, $208, $440, $123, $317, $171, $41, $208, $35, $211, $447, $124, $322, $174, $41, $211, $35, $214, $454, $126, $326, $176, $42, $214, $36, $217, $460, $128, $331, $179, $42, $217, $36, $221, $467, $130, $336, $181, $43, $221, $37, $224, $474, $132, $341, $184, $44, $224, $38, $227, $481, $134, $346, $187, $44, $227, $38, $231, $489, $136, $352, $190, $45, $231, $39, $234, $496, $138, $357, $193, $46, $234, $39, $238, $503, $140, $362, $195, $46, $238, $40, $241, [1] SFD is Single-family Dwelling Unit [2] DUP is a Duplex Dwellling Unit [3] THM is a Townhome Dwelling Unit

58 VILLAGE OF PINGREE SSA NO. 7 SPECIAL TAX ROLL CALENDAR YEAR 2007 THROUGH CALENDAR YEAR 2034 Levied Maximum Parcel Special Calendar Tax Per Dwelling Unit Year SFD [1] DUP [2] THM [3] 2007 $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $3, $1, $1, $3, $1, $1, $3, $1, $1, PERMANENT INDEX NUMBER SFD DUP THM SFD DUP THM SFD DUP THM $326, $72, $126, $331, $73, $128, $336, $74, $130, $341, $75, $132, $346, $76, $134, $351, $78, $136, $357, $79, $138, $362, $80, $140, $368, $81, $143, $373, $82, $145, $379, $84, $147, $384, $85, $149, $390, $86, $151, $396, $87, $154, $402, $89, $156, $408, $90, $158, $414, $91, $161, $420, $93, $163, $427, $94, $165, $433, $96, $168, $440, $97, $170, $446, $99, $173, $453, $100, $176, $460, $102, $178, $467, $103, $181, $474, $105, $184, $481, $106, $186, $488, $108, $189, [1] SFD is Single-family Dwelling Unit [2] DUP is a Duplex Dwellling Unit [3] THM is a Townhome Dwelling Unit

59 VILLAGE OF PINGREE SSA NO. 7 SPECIAL TAX ROLL CALENDAR YEAR 2007 THROUGH CALENDAR YEAR 2034 Levied Maximum Parcel Special Calendar Tax Per Dwelling Unit Year SFD [1] DUP [2] THM [3] 2007 $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $2, $1, $1, $3, $1, $1, $3, $1, $1, $3, $1, $1, PERMANENT INDEX NUMBER GRAND TOTAL SFD DUP THM SFD DUP THM TOTAL ,309 $461, $1,410,918 $197,948 $563,669 $2,172,535 $468, $1,431,936 $200,900 $572,075 $2,204,911 $475, $1,453,632 $203,852 $580,481 $2,237,965 $483, $1,475,328 $206,968 $589,354 $2,271,650 $490, $1,497,702 $210,084 $598,227 $2,306,013 $497, $1,520,076 $213,200 $607,100 $2,340,376 $505, $1,543,128 $216,480 $616,440 $2,376,048 $512, $1,566,180 $219,760 $625,780 $2,411,720 $520, $1,589,910 $223,040 $635,120 $2,448,070 $528, $1,613,640 $226,320 $644,460 $2,484,420 $536, $1,638,048 $229,764 $654,267 $2,522,079 $544, $1,662,456 $233,208 $664,074 $2,559,738 $552, $1,687,542 $236,652 $673,881 $2,598,075 $560, $1,712,628 $240,260 $684,155 $2,637,043 $569, $1,738,392 $243,868 $694,429 $2,676,689 $577, $1,764,156 $247,476 $704,703 $2,716,335 $586, $1,790,598 $251,248 $715,444 $2,757,290 $595, $1,817,718 $255,020 $726,185 $2,798,923 $604, $1,844,838 $258,792 $736,926 $2,840,556 $613, $1,872,636 $262,728 $748,134 $2,883,498 $622, $1,900,434 $266,664 $759,342 $2,926,440 $631, $1,928,910 $270,600 $770,550 $2,970,060 $641, $1,958,064 $274,700 $782,225 $3,014,989 $650, $1,987,218 $278,800 $793,900 $3,059,918 $660, $2,017,050 $283,064 $806,042 $3,106,156 $670, $2,047,560 $287,328 $818,184 $3,153,072 $680, $2,078,070 $291,592 $830,326 $3,199,988 $690, $2,109,258 $296,020 $842,935 $3,248,213 [1] SFD is Single-family Dwelling Unit [2] DUP is a Duplex Dwellling Unit [3] THM is a Townhome Dwelling Unit

60 EXHIBIT B PREPAYMENT OF THE MAXIMUM PARCEL SPECIAL TAX

61 VILLAGE OF PINGREE GROVE SPECIAL SERVICE AREA NUMBER SEVEN PREPAYMENT FORMULA All capitalized terms not defined in this Exhibit B shall have the meaning given to such terms in the Report. A. OPTIONAL PREPAYMENT OF THE MAXIMUM PARCEL SPECIAL TAX Pursuant to Section VI.F of the Report, the Maximum Parcel Special Tax may be prepaid and permanently satisfied under the conditions set forth therein. The Special Tax Bond Prepayment for a Parcel means an amount equal to (a) the sum of (1) Principal, (2) Premium, (3) Defeasance, and (4) Fees and (b) minus (1) the Reserve Fund Credit and (2) the Capitalized Interest Credit, where the terms "Principal," "Premium," "Defeasance," "Fees," "Reserve Fund Credit," and "Capitalized Interest Credit" have the following meanings: "Principal" means the principal amount of Bonds redeemed and equals the quotient derived by dividing (a) the then current Maximum Parcel Special Tax for the Parcel intending to prepay by (b) the corresponding Maximum Parcel Special Taxes for SSA No. 7, (and excluding from (b) that portion of the Maximum Parcel Special Tax for any Parcel(s) that has been prepaid), and multiplying the quotient by the principal amount of outstanding Bonds less any principal which has been prepaid but not yet applied toward the redemption of Bonds. "Premium" means an amount equal to the Principal multiplied by the applicable redemption premium, if any, for any Bonds so redeemed with the proceeds of any such prepayment. Any applicable redemption premium shall be as set forth in the Bond Indenture. "Defeasance" means the amount needed to pay interest on the Principal redeemed until the earliest redemption date for the outstanding Bonds less any Special Taxes heretofore paid for such Parcel and available to pay interest on the redemption date for the Bonds. "Fees" equal the expenses of SSA No. 7 associated with the Special Tax Bond Prepayment as calculated by the Village or its designee and include, but are not limited to, the costs of computing the Special Tax Bond Prepayment, the costs of redeeming the Bonds, and the costs of recording and publishing any notices to evidence the Special Tax Bond Prepayment and the redemption of Bonds. "Reserve Fund Credit" shall equal the lesser of the Reserve Fund Requirement (as such term is defined in the Bond Indenture) and the balance in the Reserve Fund (as such term is defined in the Bond Indenture) multiplied by the quotient used to calculate Principal. B-1

62 "Capitalized Interest Credit" shall equal the reduction in interest payable on the Bonds due to the redemption of Principal from the Special Tax Bond Prepayment from the redemption date for the Bonds redeemed from the Special Tax Bond Prepayment to the end of the capitalized interest period, as determined by the Consultant. No capitalized interest credit is given if the redemption date for the Bonds redeemed from the Special Tax Bond Prepayment is after the capitalized interest period. The amount of any Partial Special Tax Bond Prepayment shall be computed pursuant to the preceding prepayment formula substituting the portion of the Maximum Parcel Special Tax prepaid for the Maximum Parcel Special Tax when computing Principal. The amount of any Special Tax Bond Prepayment or Partial Special Tax Bond Prepayment computed pursuant to this Section A shall not exceed the Bonds plus any Premium, Defeasance, and Fees as such terms are defined herein. The sum of the amounts calculated above shall be paid to the Village, deposited with the trustee, and used to pay and redeem Bonds in accordance with the Bond Indenture and to pay the Fees associated with the Special Tax Bond Prepayment. Upon the payment of the Special Tax Bond Prepayment amount to the Village, the obligation to pay the portion of the Maximum Parcel Special Tax which is prepaid for such Parcel shall be deemed permanently satisfied, such portion of the Maximum Parcel Special Tax shall not be collected thereafter from such Parcel, and in the event the entire Maximum Parcel Special Tax is prepaid the appropriate party shall cause a satisfaction of special tax lien for such Parcel recorded within 30 working days of receipt of the Special Tax Bond Prepayment. B. MANDATORY PREPAYMENT OF THE MAXIMUM PARCEL SPECIAL TAX Any Mandatory Special Tax Prepayment required pursuant to Section VI.G of the Special Tax Roll and Report of SSA No. 7 will be calculated using the prepayment formula described in Section A above with the following modifications: The difference between the special taxes required for 110% debt service coverage and the amount to which the Maximum Parcel Special Taxes have been reduced shall serve as the numerator when computing Principal; and The Maximum Parcel Special Taxes necessary for the annual debt service coverage ratio to equal 110% shall serve as the denominator when computing Principal; and No Reserve Fund Credit or Capitalized Interest Credit shall be given. The amount of any Mandatory Special Tax Prepayment shall not exceed the Bonds plus any Premium, Defeasance, and Fees as such terms are defined in Section A above. B-2

63 EXHIBIT C ENGINEER'S ESTIMATE OF PROBABLE COSTS

64 ENGINEER S OPINION OF PROBABLE COST PINGREE GROVE SPECIAL SERVICE AREA SEVEN See Attached Schedule 1 Prepared By: Erik Sandstedt DRH Cambridge Homes, Inc. 800 S. Milwaukee Ave Suite 250 Libertyville, IL Dated: April 26, 2006 NOTE: This Engineer s Opinion of Probable Cost is made on the basis of Engineer s experience and qualifications using plan quantities and represents Engineer s best judgment as an experienced and qualified professional engineer generally familiar with the construction industry. However, since the Engineer has no control over the cost of labor, materials, equipment or services furnished by others, or over the Contractor s methods of determining prices, or over competitive bidding or market conditions, or over quantities of work actually performed, Engineer cannot and does not guarantee that proposals, bids or actual Construction Cost will not vary from Opinions of Probable Cost prepared by Engineer. This Opinion of Probable Construction Cost is limited to those items stated herein and does not include permit fees, recapture costs, maintenance, bonds or the like. L:\Shared\Developments\Pingree Grove\SSA SEVEN\Engineer Opinion\[Costs by NBH

65 SCHEDULE I GRAND TOTAL COMMUNITY COSTS NEIGHBORHOOD COSTS BY LAND USE SFD DUP THM 7, 8, 9, 10, 12, 13, 24, 25 15, 22 11, 14, 23 Sewer Hard Costs $3,836, $2,444, $480, $911, Constr Mgmt (7%) $268, $171, $33, $63, Subtotal Sewer $4,105, $2,615, $514, $975, Water Hard Costs $3,255, $2,035, $335, $884, Constr Mgmt (7%) $227, $142, $23, $61, Subtotal Water $3,483, $2,177, $358, $946, Storm Hard Costs $3,884, $2,659, $445, $780, Constr Mgmt (7%) $271, $186, $31, $54, Detention Basin (NBH 1-18) [1] $3,429, $3,429, Detention Basin (NBH 22-25) $547, $547, Subtotal Storm $8,133, $3,976, $2,845, $476, $835, Road Hard Costs $6,635, $4,435, $884, $1,315, Constr Mgmt (7%) $464, $310, $61, $92, ROW $2,471, $1,674, $315, $481, Subtotal Road $9,571, $6,420, $1,261, $1,889, Other Engineer $1,471, $937, $216, $318, Excavation $1,195, $801, $170, $223, Constr Mgmt (7%) $186, $121, $27, $37, Subtotal Eng & Exc $2,853, $1,860, $414, $579, Grand Total $28,148, $3,976, $15,920, $3,025, $5,226, [1] The detention basins are part of a storm water management system that benefits NBH 7 through 15 as well as SSA No. 2. The amount shown here is the total acquisition cost for such detention basins. Only a portion these costs are allocable to SSA No. 7. L:\Shared\Developments\Pingree Grove\SSA SEVEN\Engineer Opinion\[Costs by NBH

66 EXHIBIT D MAPS OF NEIGHBORHOODS

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76 THE SOUTH FEET (13.74 CHAINS) OF THE SOUTHWEST QUARTER (MEASURED AT RIGHT ANGLES TO THE SOUTH LINE THEREOF) OF SECTION 29, TOWNSHIP 42 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN, EXCEPTING THEREFROM THAT PART THEREOF LYING SOUTHWESTERLY OF THE NORTHEASTERLY RIGHT OF WAY LINE OF THE SOO LINE RAILROAD (FORMERLY CHICAGO, MILWAUKEE AND ST. PAUL RAILROAD COMPANY), IN RUTLAND TOWNSHIP, KANE COUNTY, ILLINOIS; TOGETHER WITH, THE WEST HALF OF THE NORTHEAST QUARTER OF SECTION 32, TOWNSHIP 42 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN, EXCEPTING THEREFROM THAT PART THEREOF FALLING WITHIN THE SOO LINE RAILROAD (FORMERLY CHICAGO, MILWAUKEE AND ST. PAUL RAILROAD COMPANY) RIGHT OF WAY, IN RUTLAND TOWNSHIP, KANE COUNTY, ILLINOIS; TOGETHER WITH, THAT PART OF THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF SECTION 32, TOWNSHIP 42 NORTH, RANGE 7 EAST OF THE THIRD PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID SOUTHEAST QUARTER; THENCE SOUTH 45 DEGREES 18 MINUTES 56 SECONDS WEST ALONG A LINE DRAWN FROM SAID NORTHEAST CORNER TO THE SOUTHWEST CORNER OF SAID SOUTHEAST QUARTER FEET; THENCE SOUTH 42 DEGREES 41 MINUTES 44 SECONDS EAST PARALLEL WITH THE PRESENT CENTER LINE OF U.S. ROUTE No. 20, FEET; THENCE SOUTH 45 DEGREES 18 MINUTES 56 SECONDS WEST PARALLEL WITH THE PENULTIMATE DESCRIBED COURSE FEET TO THE SOUTHWESTERLY RIGHT OF WAY LINE OF SAID U.S. ROUTE No. 20, BEING 40.0 FEET SOUTHWESTERLY OF SAID CENTER LINE (MEASURED AT RIGHT ANGLES THERETO); THENCE SOUTH 42 DEGREES 41 MINUTES 44 SECONDS EAST ALONG SAID SOUTHWESTERLY RIGHT OF WAY LINE FEET TO THE SOUTH LINE OF SAID SOUTHEAST QUARTER; THENCE SOUTH 89 DEGREES 58 MINUTES 10 SECONDS EAST ALONG SAID SOUTH LINE FEET TO THE SOUTHEAST CORNER OF SAID SOUTHEAST QUARTER; THENCE NORTH 0 DEGREES 18 MINUTES 49 SECONDS EAST ALONG THE EAST LINE O F SAID SOUTHEAST QUARTER FEET TO THE POINT OF BEGINNING, IN RUTLAND TOWNSHIP, KANE COUNTY, ILLINOIS. Site Data Acres Percent Total Site Residential North of Soo Line Commercial South of Soo Line Residential Area Acres Percent Units Percent Total Site Courthomes (NH-23) Duplex (NH-22) Single Family (NH-24 & NH-25) Park A Gross Site Density = 2.26 D.U./Ac. (282 D.U./ Ac.) Gross Residential Density = 4.46 D.U./Ac. (282 D.U./63.18 Ac.) Courthomes (NH-23/Seaboard) Acres Percent Total Area Internal Road R.O.W Building Cover Pavement Cover Open Space (Includes approximately 2.44 Ac. in Detention and 0.64 Ac. in Fiber Optic Easement) Total Number of Units = 132 Note: All units contain 2-car garages. Duplex Area (NH-22/Spring Valley) Acres Percent Total Area Road R.O.W Lot Area Area in Open Space (B) Number of Lots = 13 (26 D.U.) Min. Lot Size (SF) = 9,240 Avg. Lot Size (SF) = 13,905 M in. Lot Width (Ft.) = 88 Note: All units contain 2-car garages. Sin gle Family Area M eadow/ Horizon Prairie N-24 N-25 Total Total Area Road R.O.W Lot Area Open Space (C&D) Number of Lots Min. Lot Size (SF) 6,840 7,560 Avg. Lot Size (SF) 8,552 9,190 Min. Lot Width (Ft.) Design Standards: Single Family and Duplex Horizon Meadow / Prairie Spring Valley Single Family Single Family Duplex N-24 N-25 N-22 Minimum Lot Size 6,840 Sq. Ft. 7,560 Sq. Ft. 9,240 Sq. Ft. Minimum Lot Width 57 Ft. 63 Ft. 88 Ft. Yards: Front 22 Ft. 25 Ft. 25 Ft. Side (Corner) 22 Ft. 25 Ft. 25 Ft. Side (Interior) Min. 7 Ft. 7 Ft. 7 Ft. Side (Interior) Total (2) 14 Ft. / 10 Ft. 14 Ft. / 10 Ft. 14 Ft. / 10 Ft. Rear 25 Ft. 25 Ft. 25 Ft. Notes: 1. No maximum structural coverage, minimum buildable area or maximum floor area ratio limitations shall be applicable. 2. Air conditioning units, bay windows, chimneys, fireplaces, eaves, and open porches may protrude up to 26 inches into the required side yard (Bay windows, chimneys, fireplaces and open porches may be with or without foundations.) However, a minimum distance of 10 Ft. shall be maintained between such protrusions, as noted. 3. Lot width measured as tangent on cul-de-sac and outside curve lots. Design Standards: Townhomes (Courthomes) Typical Minimum Distance from Front of Building to Street R.O.W. 20 Ft. Minimum Distance from Side of Building to Street 15 Ft. Minimum Separation from Building to Building:(2) Side to Side 20 Ft. Side to Rear 35 Ft. Rear to Rear 50 Ft. Front to Front Private Court 60 Ft. Front to Front Private Street NA Front to Front Public Street 100 Ft. To Perimeter of Property Line(3) 25 Ft. Maximum Height (Stories) 3 Maximum Height from Grade at Front of Building to Eave of Roof 45 Ft. 1. No maximum structural coverage, minimum buildable area or maximum floor area ratio limitations shall be applicable. For conveyance purposes, townhomes may be subdivided to create envelope lots. Envelope lots will not be considered as single family lots. 2. In lieu of traditional side and rear yard setbacks, the minimum separation between buildings shall be as stipulated above. 3. Where the perimeter property line abuts Cambridge Lakes Residential Development, the minimum distance may be reduced to zero feet as long as the building setbacks and separations are maintained as established in this table.