CTTV OF CHICAGO
CHTCAGO-O 'HARE INTERNATIONAL AIRPORT
AUDIT REPORT
AT
DECEMBER 31. 1975
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3797. 7C4
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1975
Bansley and Kiener
Certified Public Accountants
300 WEST WASHINGTON STREET
Chicagd, Illinois BDBDB
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to
3 5556 029 780186
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Bansley and Kiener
Certified Public Accountants
300 WEST WASHINGTON STREET
CHICAGO, ILLINOIS 60606
AREA CODE 312 263-2700
June 18, 1976
To the City Council of the
City of Chicago, Illinois
JOLIET OFFICE:
168 NORTH OTTAWA STREET
JOLIET. ILLINOIS 60431
AREA CODE 815 736-7361
We have examined the balance sheet of Chicago-O'Hare
international Airport as of December 31, 1975, and the related
statements of revenue and expense, changes in reserves, changes in
contributions, and changes in retained earnings for the year then
ended. Our examination was made in accordance with generally
accepted auditing standards, and accordingly included such tests
of the accounting records and such other auditing procedures as we
considered necessary in the circumstances. We also made reference
to the authorizing ordinance to determine that accounting trans-
actions reflected in the attached financial statements were within
the scope of the authority.
In our opinion, the accompanying financial statements,
together with our notes pertaining thereto, present fairly the
financial position of Chicago-O'Hare international Airport as of
December 31, 1975 and the results of its operations for the year
then ended, in conformity with generally accepted accounting
principles and, except as stated in Note 1C3, the applicable
provisions of the Revenue Bond Ordinance, applied on a basis
consistent with that of the preceding year.
Certified Public Accountants
(3
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£1
rHTCAGO-0'HA:
EXHIBIT A
-2-
E
DEC
JUTIONS AND RETAINED EARNINGS
CURRENT ASSETS: 3iit Assets) :
Operation and Maintenance Accoufte Year
Cash - City Treasurer
Cash - Bank Trustee
U.S. Treasury Bills (Note 1A)
Accounts Receivable (Note IB) rioted Assets):
Less - Allowance for Doubtful
Due from Other Funds
Prepaid Insurance
$ 4,676,000.00
10,501,901.57
2,276,398.87
$ 17,454,300.44
Total Current Assets
RESTRICTED ASSETS:
Special Accounts:
Cash - City Treasurer
Cash - Bank Trustee
U.S. Treasury Bills
(Note 1A)
U.S. Treasury Notes
(Note 1A)
Accrued Interest Receiv-
able on U.S. Treasury
Notes
Due from Operation and
Maintenance Account
Construction Accounts:
Cash - City Treasurer
Cash - Bank Trustee
U.S. Treasury Bills
(Note 1A)
547,204.02
599,615.44 1,146,819.46
20
23
$ 18,601,119.90
$154,223,000.00
4,676,000.00 149,547,000.00
16,742,000.00
2,631,170.41
1,356,153.97
25,392,160.56
4,648,437.50
36,010.00
4,348,448.85
55,154,381.29
.rline
Total Restricted Assets
FIXED ASSETS: (Notes 1C and ID) :
Land
Buildings and Other
Facilities $286
Less - Allowance for
Depreciation 105
Construction in Progress
Total Fixed Assets
OTHER ASSETS:
Deferred Engineering Costs
Less - Amortization
Total Assets
Note - Retained Earnings include
Note - Contract commitments to be
See notes to financial statements
$ 21,910,590.09
32,883,975.83
29,620,780.85
84,415,346.77
5,855,477.75
Contributions and
$313.573.325.71
red income to reduce 1976 flight fees.
31, 1975.
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CITY OF CHICAGO
CHTCAGO-O'HARE INTERNATIONAL AIRPORT
BALANCE SHEET
DECEMBER 31, 1975
EXHIBIT A
-2-
ASSETS
CURRENT ASSETS:
Operation and Maintenance Account:
Cash - City Treasurer
Cash - Bank Trustee
U.S. Treasury Bills (Note 1A)
Accounts Receivable (Note IB)
Less _ Allowance for Doubtful Accounts
Due from Other Funds
Prepaid Insurance
Total Current Assets
RESTRICTED ASSETS:
Special Accounts:
Cash - City Treasurer
Cash - Bank Trustee
U.S. Treasury Bills
(Note 1A)
U.S. Treasury Notes
(Note 1A)
Accrued Interest Receiv-
able on U.S. Treasury
Notes
Due from Operation and
Maintenance Account
Construction Accounts:
Cash - City Treasurer
Cash - Bank Trustee
U.S. Treasury Bills
(Note 1A)
9,196,202.05
2,093,838.37
6,560,695.33
604,142.55
3,039,057.94
7,102,363.68
121,872.63
439,160.65
$ 17,867, 292. li
33,817.93
4,992,698.00
20,580,296.12
23,018,398.45
451,527.09
2,276,398.87 $ 51,353,136.46
93,622.61
25,177.06
4,829,264.62
4,948,064.29
$ 48,506,553.06
Total Restricted Assets
FIXED ASSETS: (Notes lC and ID):
Land
Buildings and Other
Facilities $286,385,782.20
Less - Allowance for
Depreciation 105,849,136.64 180,536,645.56
Construction in Progress 10,117, 376.07
Total Fixed Assets
56,301,200.75
OTHER ASSETS:
Deferred Engineering Costs
Less - Amortization
$ 1,226,701.79
982,444.30
239,160,574.69
244,257.49
LIABILITIES, RESERVES, CONTRIBUTIONS AND RETAINED EARNINGS
CURRENT LIABILITIES (Payable from Current Assets) :
Revenue Bonds Payable - Due within One Year
Vouchers and Accounts Payable
Due to Special Accounts
CURRENT LIABILITIES (Payable from Restricted Assets) :
Special Accounts:
Vouchers and Accounts Payable $ 547,204.02
Construction Accounts:
Vouchers and Accounts Payable 599,615.44
Total current Liabilities
$ 4,676,000.00
10,501,901.57
2,276,398.87
$ 17,454,300.44
1,146,819.46
$ 18,601,119.90
LONG-TERM LIABILITIES:
Revenue Bonds Payable (Note 2)
Less - Portion Due within One Year
RESERVES (Exhibit C) :
Debt Service
Revenue Bond Retirement
Reserve Maintenance
Emergency Reserve
Matured Interest on Revenue Bonds
Matured Revenue Bonds
Construction
Total Reserves
CONTRIBUTIONS (Exhibit D) :
City of Chicago
State and Federal
Public Utility, Concessionaire and Airline
Total Contributions
RETAINED EARNINGS (Exhibit E)
$154,223,000.00
4,676,000.00
16,742,000.00
2,631,170.41
1,356,153.97
25,392,160.56
4,648,437.50
36,010.00
4,348,448.85
$ 21,910,590.09
32,883,975.83
29,620,780.85
149,547,000.00
55,154,381.29
84,415,346.77
5,855,477.75
Total Liabilities, Reserves, Contributions and
Retained Earnings
Total Assets $313,573,325.71 Retained Earnings S313 , 573 , 325 .71
Note - Retained Earnings include $5,088,992.34 which represent, in accordance with the Revenue Bond Ordinance, deferred income to reduce 1976 flight fees.
Note - Contract commitments to be financed by the Operation and Maintenance Account totaled $7,774,015.10 at December 31, 1975.
See notes to financial statements.
(3
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EXHIBIT C
-4-
cr
(THTCAflO-O'HAR
ANALYSIS O]
FOR THE YEAR
Re1 Matured
B< Revenue
lnt< Bonds
Construction
Total
BALANCE - JANUARY 1, 197 5
Add - Cash on Deposit
with Bank Trustee at
January 1, 1975
ADJUSTED BALANCE -
JANUARY 1, 197 5
JL90, 393.75
$8,263,027.21 $52,635,870.78
7,729,569.69
J.90, 393.75 $8,263,027.21 $60,365,440.47
Add:
Allocation of Net Revenue $8,70
Interest Earned on
Investments - Restricted
Transfer from Debt
Service Account
Transfer from Revenue
Bond Interest Account (8, 54
$ - $21,201,513.82
500,527.55 2,261,851.03
Total
Balance
$ 15(
$ 500,527.55 $23,463,364.85
JL_iJLJL90, 393.75 $8,763,554.76 $83,828,805.32
Less:
Purchase of Chicago-O'Hare
International Airport
Revenue Bonds $
Expenditures by Bank
Trustee during 1975
for Retirement of
Bonds and Payment
of Coupons
Expenditures from Reserve
Maintenance Account
Expenditures for Fixed
Assets Acquired with
Revenue Bond Money
15)
$ 8,978,296.63
154,383.75
11,588,658.44
3,692,363.05
4,415,105.91 4,415,105.91
Total
£—iJ>l54, 383.75 $4,415,105.91 $28,674,424.03
BALANCE - DECEMBER 31, 197 5 £
See notes to financial statements
36.010.00 $4.348.448.85 $55.154.381.29
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EXHIBIT C
-4-
CITY OF CHICAGO
CHICAGO-O'HARE INTERNA TTONAL AIRPORT
ANALYSIS OF CHANGES IN RESERVES
FOR THE YEAR ENDED DECEMBER 31, 197 5
Revenue
Revenue
Matured
Matured
Bond
Debt
Bond
Reserve
Emergency
Interest on
Revenue
Interest
Service
Retirement
Maintenance
Reserve
Revenue Bonds
Bonds
Construction Total
BALANCE - JANUARY 1, 1975 $ - $17,722,624.00 $ 8,086.29 $3,663,002.88 $22,979,130.40 $ $ $8,263,027.21 $52,635,870.78
Add - Cash on Deposit
with Bank Trustee at
January 1, 1975 - = = - I 7,539,175.94 190,393.75 - 7,729,569.69
ADJUSTED BALANCE -
JANUARY 1, 1975 £ - $17,722,624.00 $ 8,086.29 $3,663,002.88 $22,979,130.40 $ 7,539,175.94 $190,393.75 $8,263,027.21 $60,365,440.47
Add:
Allocation of Net Revenue $8,701,980.28 $ 9,576.00 $10,452,736.72 $1,160,000.00 $ 877,220.82 $ $ - $ $21,201,513.82
Interest Earned on
Investments - Restricted - 225,514.14 1,535,809.34 - - 500,527.55 2,261,851.03
Transfer from Debt
Service Account - (990,200.00) 990,200.00 - - -
Transfer from Revenue
Bond Interest Account
Total
Balance
Less:
Purchase of Chicago-O'Hare
International Airport
Revenue Bonds $ 158,444.03 $ - $ 8,819,852.60 $ - $ - $ - $- $ -$ 8,978,296.63
Expenditures by Bank
Trustee during 1975
for Retirement of
Bonds and Payment
of Coupons _____ 11,434,274.69 154,383.75 - 11,588,658.44
Expenditures from Reserve
Maintenance Account - 3,692,363.05 - - - - 3,692,363.05
Expenditures for Fixed
Assets Acquired with
Revenue Bond Money
Total
BALANCE - DECEMBER 31, 197 5 £
See notes to financial statements.
(8,543,536.25)
1 - - - - 8,543,536.25
_
$ 158,444.03
$ (980,624.00)$11,442,936.72 $1,385,514.14 $ 2,413,030.16 $ 8,543,536.25
$ - $ 500,527.55 $23,463,364.85
$ 158,444.03
$16,742,000.00 $11,451,023.01 $5,048,517.02 $25,392,160.56 $16,082,712.19
$190,393.75 $8,763,554.76 $83,828,805.32
- - - - - 4,415,105.91 4,415,105.91
$
158,444.03 $ - $ 8,819,852.60 $3,692,363.05 $ - $11,434,274.69 $154,383.75 $4,415,105.91 $28,674,424.03
$
$16,742,000.00 $ 2.631.170.41 $1,356,153.97 $25,392,160.56 S 4.648.437.50 $ 36.010.00 $4,348,448.85 $55,154,381.29
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CTTY OF CHICAGO
CHTCAGO-0 ' HARE INTERNATIONA
ANALYSIS OF CHANGES IN CON11.
FOR THE YEAR ENDED DECEMBEI
BALANCE - JANUARY 1, 1975
Add:
increase in Fixed Assets Acquired with:
City Money
State and Federal Money (Note 1C2)
Public Utility, Concessionaire and
Airline Money
Total
Balance
Less :
Provision for Depreciation
Amortization of Deferred Engineering Costs
Total
BALANCE - DECEMBER 31, 1975
Lty,
ire
e
.48
.93
EXHIBIT D
-5-
Total
$71,557,301.96
.30
$ 5,576,961.
9,161,656.
82
.30
.30
$14,738,618
.12
.78
$86,295,920
.08
.93 $ 1,831,505.23
49,068.08
$ 1,880,573.31
85 $84.415.346.77
See notes to financial statements
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CITY OF CHICAGO
CHICAGO-O'HARE INTERNATIONAL AIRPORT
ANALYSIS OF CHANGES IN CONTRIBUTIONS
FOR THE YEAR ENDED DECEMBER 31, 1975
EXHIBIT D
-5-
BALANCE - JANUARY 1, 1975
Add:
Increase in Fixed Assets Acquired with:
City Money
State and Federal Money (Note 1C2)
Public Utility, Concessionaire and
Airline Money
Total
Balance
City
of
Chicago
$19,145,986.71
$ 5,576,961.82
(2,637,781.85)
State
and
Federal
$31,242,577.77
2,637,781.85
Public Utility,
Concessionaire
and Airline
$21,168,737.48
Total
$71,557,301.96
$ 5,576,961.82
-
9,
,161,
,656.
,30
9,
,161,
,656.30
$ 2,939,179.97
$ 2,637,781.85
$ 9,
,161,
,656.
.30
$14,
,738,
,618.12
$22,085,166.68
$33,880,359.62
$30,
,330,
,393,
.78
$86,
,295,
,920.08
Less :
Provision for Depreciation
Amortization of Deferred Engineering Costs
Total
BALANCE - DECEMBER 31, 1975
$
125,
49,
,508.51
,068.08
$
996,383.79
$
709,
,612.93
$ 1,831,
49,
505.23
068.08
$
174,
,576.59
$
996,383.79
$
709,
,612.93
$ 1,880,
,573.31
$21
,910,
,590.09
$32
,883,975.83
$29
,620,
,780.85
$84,415,
,346.77
See notes to financial statements.
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CHICAGO
-0
CITY
'HARE
OF CHICAGO
INTERNATIONAL
AIRPORT
ANALYSIS
OF
CHANGES
IN RETAINEE
) EARNINGS
DECEMBER 31, 1975
EXHIBIT E
-6-
Deferred
Income to
Reduce Future
Flight Fees
City
Equity
Total
BALANCE -
JANUARY 1, 1975
Add:
Increase in Fixed
Assets Acquired
with Revenue
Bond Money
Revenue Bonds
Retired during
1975
Total
Balance
Less:
Provision for
Depreciation of
Assets Acquired
with Revenue
Bond Money (,
Decrease in Deferred
income to Reduce
Future Flight
Fees
$13,730,138.21 $(5,058,566.66) $ 8,671,571.55
$ 4,415,105.91 $ 4,415,105.91
9,477,000.00 9,477,000.00
L
$13,892,105.91 $13,892,105.91
$13,730,138.21 $ 8,833,539.25 $22,563,677.46
8,641,145.87
$ 8,067,053.84 $ 8,067,053.84
8,641,145.87
Total $ 8,641,145.87 $ 8,067,053.84 $16,708,199.71
BALANCE -
DECEMBER 31, 1975 | 5,088,992.34 $ 766,485.41 $ 5.855.477.75
See notes to financial statements.
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SCHEDULE A-l
CITY OF CHICAGO -7-
CHICAGO-O'HARE INTERNATIONAL AIRPORT
RECONCILIATION TO "NET REVENUES" AS DEFINED
IN REVENUE BOND ORDINANCE
FOR THE YEARS ENDED DECEMBER 31, 197 5 AND 1974
Years Ended December 31,
1975 1974
NET INCOME $ 1,641,904.80 $ 7,613,812.65
ADD OR (DEDUCT) ADJUSTMENTS TO REFLECT
ORDINANCE BASIS OF ACCOUNTING:
Amounts included Above in Deter-
mination of Net income:
Depreciation 9,898,559.07 9,736,636.37
Amortization of Deferred
Engineering Costs 49,068.08 49,068.08
Expenditures from Reserve
Maintenance Account 3,692,363.05 2,734,968.32
Interest Earned on Invest-
ments - Restricted (2,261,851.03) (3,429,491.82)
interest on Revenue Bonds 8,701,980.28 9,291,422.23
Amounts Not Included Above in
Determination of Net Income:
Expenditures of Operating
Revenue for Capital
Improvements (Note 1C3) (9,161,656.30) (1,811,541.30)
Application of Deferred
Income from Preceding
Year as Reduction of
Flight Fees
"NET REVENUES" AS DEFINED IN BOND
ORDINANCE
ALLOCATION OF "NET REVENUES" IN
ORDER OF PRIORITY (Note IF) :
Revenue Bond interest $ 8,701,980.28 $ 9,291,422.23
Debt Service 9,576.00 316,808.00
Revenue Bond Retirement -
Minimum Payment 4,452,000.00 4,07 9,000.00
Reserve Maintenance 1,160,000.00 1,160,000.00
Emergency Reserve 877,220.82 902,979.58
Deferred Income to Reduce
Flight Fees in Following Year 5,088,992.34 13,730,138.21
Remainder - Additional Allocation
to Revenue Bond Retirement 6,000,736.72 5,477,062.77
TOTAL ALLOCATION OF "NET REVENUES" $26,290.506.16 $34.957.410.79
See notes to financial statements.
13,730,138.21
10,772,536.26
$26,290,506.16
$34,957,410.79
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CHTCAGO-0'HA
ANALYSIS OF CHANGE
FOR THE YEAR
SCHEDULE A- 2
-8-
g and Fueling
ration System
mansion Expansion
BALANCE - JANUARY 1, 1975
Add:
Total
93.36 $1,161,264.31 $8,263,027.21
Interest Earned on InvestmeJ
Restricted
Balance
20.54
57,138.57
500,527.55
13.90 $1,218,402.88 $8,763,554.76
Less:
Expenditures for Fixed Asse*
with Revenue Bond Money 31.40
1,030,548.00
4,415,105.91
BALANCE - DECEMBER 31, 1975 82.50 $ 187.854.88 $4.348.448.85
Note - Negative amount resulti
See notes to financial stateme
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C7TY OF CHICAGO
CHTCAGO-O'HARF, INTERNATIONAL AIRPORT
ANALYSIS OF CHANGES IN RESERVE FOR CONSTRUCTION
FOR THE YEAR ENDED DECEMBER 31, 1975
SCHEDULE A- 2
BALANCE - JANUARY 1, 1975
General
Construction
of 1968
Elevated
Garage
Runway Pedestrian Heating and Fueling
4R-22L Tunnels and Refrigeration System
and Land Access Roads Plant Expansion Expansion
Total
$2,854,298.97 $317,910.97 $3,281,967.54 $347,192.06 $300,393.36 $1,161,264.31 $8,263,027.21
Add:
Interest Earned on Investments
Restricted
Balance
170,666.47
71,661.78
160,874.00
19,666.19
20,520.54
57,138.57
500,527.55
$3,024,965.44 $389,572.75
$3,442,841.54
$366,858.25
$320,913.90 $1,218,402.88 $8,763,554.76
Less:
Expenditures for Fixed Assets Acquired
with Revenue Bond Money
BALANCE - DECEMBER 31, 1975
$3,024,965.44
(175,799.13)
3,442,841.54
49,284.10
68,231.40
1,030,548.00
4,415,105.91
$565,371.88
$317.574.15
$252,682.50 $ 187.854.88 $4.348,448.85
Note - Negative amount results from adjustment to final contract liability.
See notes to financial statements.
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-9-
CTTY OF CHICAGO
CHICAGO-O'HARE INTERNATIONAL AIRPORT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31 , 197 5
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES:
A. United States Treasury Bills and Treasury Notes:
Investments in these securities are carried at cost.
Interest is accrued only on those securities having stated
interest rates, i.e., Treasury Notes. Discounts and pre-
miums are recognized at the time of maturity or sale. The
aggregate market value of securities at December 31, 197 5,
was $471,312.22 in excess of cost. Components of this
excess are as follows:
Cost Market
Operation and Maintenance
Account:
Treasury Bills $ 3,039,057.94 $ 3,056,980.19
Special Accounts:
Treasury Bills 20,580,296.12 20,788,479.13
Treasury Notes 23,018,398.45 23,237,692.20
Construction Accounts:
Treasury Bills 4,829,264.62 4,855,177.83
Total $51.467.017.13 $51.938.329.35
B. Accounts Receivable:
In accordance with the Revenue Bond Ordinance, all
accounts receivable uncollected, for a period of thirty days
after due date are considered uncollectible and are to be
provided for. As of December 31, 1975, an allowance of
$2,093,838.37 is recorded for these accounts. Approximately
$810,000.00 of this amount was subsequently collected through
April 30, 1976.
C. Fixed Assets:
All fixed assets are recorded at cost. Land includes
the costs of earthwork and landscaping. The financial state-
ments reflect fixed assets acquired with Revenue Bond money
and with money from other sources. These sources are:
City money
State and Federal money
Public Utility, Concessionaire
and Airline money
<"
-10-
CTTY OF CHICAGO
CHICAGO-O'HARE INTERNATIONAL AIRPORT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1975
(Continued)
C. Fixed Assets (Continued) :
At December 31, 197 5, the gross amount of those assets
acquired with money from other sources is $107,625,571.24
less allowances for depreciation of $23,454,481.96. The
net amount of these assets is reflected by source in the
"Contributions" section of the Balance Sheet.
1. Fixed assets acquired with City money include capital-
ized interest for the use of City money. Interest is
capitalized from the commencement of the land improve-
ment or construction activity through the year of
completion.
2. Fixed assets acquired with State and Federal money
represent grants received that are reimbursements to
the City for fixed assets acquired with City money.
These grants are recognized only as received. As of
December 31, 1975, a maximum of $7,825,192.71 may be
realized in future periods from such grants.
3. Fixed assets acquired with Public Utility, Concession-
aire and Airline money are comprised of direct reim-
bursements and amounts expended directly and indirectly
from operating revenues. The Revenue Bond Ordinance
does not allow the expenditure of operating revenues
for capital improvements. However, the Airline Repre-
sentative has agreed to substantially all of these
expenditures. Using operating revenues for this
purpose has the effect of raising flight fees.
In accordance with the Revenue Bond ordinance, all
replacements of vehicles, furnishings, signs and other
equipment are expensed during the year of acquisition.
D. Depreciation and Amortization:
Depreciation on Buildings and Other Facilities is pro-
vided on a straight-line basis over the estimated useful
life of the individual assets. Depreciation charges are
begun in the year following the year of acquisition or
completion. Deferred Engineering Costs with an original
balance of $1,226,701.79 are being amortized on a straight-
line basis over 25 years.
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-11-
E
CITY OF CHICAGO
CHICAGO-0 ' HARE INTERNATIONAL AIRPORT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1975
(Continued)
Revenues :
In accordance with the Revenue Bond Ordinance, all
operating revenues and unrestricted interest earned on
investments are accounted for through the Revenue Fund.
These revenues are to be allocated first to the Operation
and Maintenance Account and then allocated in the following
order of priority to the following special accounts:
Revenue Bond Interest
Debt Service
Revenue Bond Retirement
Reserve Maintenance
Emergency Reserve
Further explanation of the allocations
for 197 5 are detailed in Note IF.
Restricted interest earned on investments is com-
prised of:
Special Accounts:
Reserve Maintenance
Emergency Reserve
Construction Accounts
Total
$ 225,514.14
1,535,809.34 $1,761,323.48
500,527.55
$2.261.851.03
While the restricted interest of the special accounts
is accounted for through the Revenue Fund, no restricted
interest is included in the above allocation of revenues.
Restricted interest of the construction accounts is
accounted for in the individual construction accounts.
F. Allocation of Revenues :
The Revenue Bond Ordinance requires the allocation of
revenues for specified purposes in the following order of
priority:
1. For ordinary costs of operation and maintenance, but
not in excess of the amount budgeted by the City for
such purposes.
2. For amounts equal to interest on bonds outstanding.
Interest of $8,701,980.28 was paid during 1975.
-12-
CTTY OF CHICAGO
CHICAGO-O'HARE INTERNATIONAL AIRPORT
NOTES TO FINANCIAL STATEMENTS
'"" DECEMBER 31, 197 5
(Continued)
F. Allocation of Revenues (Continued) :
3. To maintain the balance of the Debt Service Reserve at
an amount equal to two years* interest requirements.
During the year all revenue bond issues became fully
funded after an allocation of $9,576.00 was made to
the Reserve for the Revenue Bond Series of 1972. Bonds
in the principal amount of $9,477,000.00 were purchased
during 197 5 and the corresponding interest requirement
of $990,200.00 for 197 5 was transferred to the Revenue
Bond Retirement Reserve.
4. For required minimum payments to the Revenue Bond
Retirement Reserve, which range from $4,452,000.00 in
1975 to $14,545,000.00 in 1998. Additional allocations
for 1975 are $990,200.00 and $6,000,736.72 as explained
in Notes F-3 and F-8 respectively. The total alloca-
tion to the Revenue Bond Retirement Reserve during 197 5
was $11,442,936.72.
5. For annual payment of $1,160,000.00 to Reserve Mainte-
nance until $4,833,334.00 is accumulated in the Reserve.
This money is available for the payment of major repairs,
renewals and replacements. Expenditures of $3,692,363.05
were made from this account during 197 5 for the specified
purposes.
6. To pay to the Emergency Reserve an amount equal to the
sum of the annual provisions for depreciation and amor-
tization of fixed and other assets acquired with City
money and interest on City money invested in fixed and
other assets of the Airport.
The components of this amount for 197 5 are:
Depreciation $125,508.51
Amortization 49,068.08
interest 702,644.23
Total $877.220.82
Monies held to the credit of the emergency reserve
account shall be treated as revenues to provide for
the abatement of landing fees in the event that the
Airport is closed.
f
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CTTY OF CHICAGO
CHICAGO-0 ' HARE INTERNATIONAL AIRPORT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 197 5
(Continued)
F. Allocation of Revenues (Continued) :
7. To provide for deferred income to reduce future flight
fees. To the extent that revenues for the year as
defined in the Ordinance, including the application of
deferred income from the previous year, exceed "Airport
expense" as defined, the excess shall be considered
deferred income and as revenues of the next succeeding
year. For the year ended December 31, 197 5,
$5,088,992.34 has been deferred to reduce flight
fees for 1976.
8. To provide for retirement of Revenue Bonds in addition
to minimum payment referred to in Note F-4. Any
remaining revenues after making the previously listed
allocations shall be allocated to the Revenue Bond
Retirement Reserve, $6,000,736.72 was so credited for
1975.
NOTE 2 - REVENUE BONDS AND RETIREMENT
A. Revenue Bonds:
The Chicago-O'Hare International Airport Revenue Bonds
were issued under the authority of an ordinance adopted
December 29, 1958, and subsequent supplemental ordinances.
The Bonds were issued to provide monies for the extension
and improvement of the Airport and its facilities. The
following information is presented regarding the status of
the Bonds as of December 31, 197 5:
Amount authorized $238,000,000.00
Amount sold 232,000,000.00
Amount called or purchased
and retired 77,740,990.00
Amount called or purchased
but not presented to bank
trustee for retirement 36,010.00
Amount outstanding 154,22 3,000.00
)
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CITY OF CHICAGO
CHIC AGO -O' HARE INTERNATIONAL AIRPORT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31. 1975
(Continued)
A. Revenue Bonds (Continued) ;
The Revenue Bonds outstanding are composed of the
following:
4-3/4% Series of 1959 $ 69,315,000.00
4-3/4% Series A of 1961 14,339,000.00
4-1/4% Series B of 1961 2,094,000.00
4-1/2% Series of 1967 3,078,000.00
5% Series of 1968 12,037,000.00
6.80% Series of March, 1970 45,810,000.00
6% Series of 1972 7.550,000.00
Total $1.54.223.000.00
The unexpended proceeds from Revenue Bond issue
amounted to $4,348,448.85 at December 31, 1975. This
amount is comprised of:
Construction Accounts' Assets $4,948,064.29
Less - Construction Accounts '
Liabilities 599.615.44
Reserve for Construction $4.348.448.85
B. Retirement:
Revenue Bonds are to be retired as rapidly as practic-
able through the revenues allocated to the Revenue Bond
Retirement Reserve. Bonds may be redeemed by call at
prices ranging downward from 105% to 100% of principal
amount plus accrued interest to December 31, 1991, and
thereafter, at par value plus accrued interest. In addi-
tion, Bonds may be redeemed by purchase in the open market
or tender at prices not in excess of the next predeter-
mined call prices. The following information is presented
regarding Bonds purchased for retirement through December
31, 1975:
1975 Cumulative
Par value of Bonds
purchased $9,477,000.00 $77,777,000.00
Cost of Bonds purchased 8,819,852.60 71,918,720.10
Premiums paid on
Bonds purchased 60,477.50 581,092.50
Premiums paid on Bonds purchased are charged to Airport
operations in the year of payment. Discounts on Bonds
purchased are retained in the Bond Retirement Reserve to
purchase additional Bonds.
(
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CTTY OF CHICAGO
CHICAGO -O' HARE INTERNATIONAL AlRPQRT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1975
(Continued)
Bonds also may be redeemed with monies that are not
allocations of revenues to the Retirement Reserve. Call
prices for this type of redemption have been adopted which
exceed the previously referred to call prices by not more
than 2% of principal amount. As of December 31, 1975, the
City has never opted to retire Airport Bonds by this method,
NOTE 3 - OTHER INFORMATION
A. The Revenue Bond Ordinance provides that "Airport
Expense, " for the purpose of computing flight fees collect-
ible from the airlines, shall include depreciation and
amortization only on fixed assets acquired with City money
and interest on City money invested in land, buildings,
other facilities and deferred engineering costs. See
Note F-6.
B. The Reserve for Matured Interest on Revenue Bonds is
comprised of the following:
Payment to bank trustee for
coupons due January 1, 1976 $4,185,500.00
Prior payments to bank trustee -
coupons not presented for
redemption 462,937.50
Total $4.648.437.50
C. The Reserve for Matured Bonds represents bonds called
or purchased but not presented to the bank trustee for
retirement.
i
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r.TTV OF CHICAGO
CHICAGO-0 ' HARE INTERNATIONAL
NOTES TO FINANCIAL STATI
DECEMBER 31, 197 5
(Continued)
NOTE 4 - GENERAL COMMENTS
The financial statements of Chica in accordance
with guidelines for reporting of muni
As a result, the ending balances had to be
adjusted. The following elimination ive at revised
opening balances on January 1, 197 5,
Balance
January 1, 197 5
Anticipated future revenues to
be used for retirement of
Revenue Bonds outstanding
Property Fund - Assets Acquired
with Revenue Bond money -
Fund Balance
Retained Earnings - Excess of
Depreciation over Bonds retiree
Total
5,058,566.66
$5.058.566.66
<
-16-
CTTY OF CHICAGO
CHICAGO-O'HARE INTERNATIONAL AIRPORT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1975
(Continued)
NOTE 4 - GENERAL COMMENTS
The financial statements of Chicago-O'Hare International Airport for 197 5 are presented in accordance
with guidelines for reporting of municipal enterprise funds.
As a result, the ending balances at December 31, 1974 of certain balance sheet accounts had to be
adjusted. The following elimination details the changes made in the ending balances to arrive at revised
opening balances on January 1, 1975.
Balance Balance
December 31, 1974 Elimination January 1, 197 5
Anticipated future revenues to
be used for retirement of
Revenue Bonds outstanding $ 163,700,000.00 $(163,700,000.00) $
Property Fund - Assets Acquired
with Revenue Bond money -
Fund Balance (158,641,433.34) 158,641,433.34
Retained Earnings - Excess of
Depreciation over Bonds retired - 5, 058, 566.66 5, 058, 566.66
Total $ 5.058.566.66 $ $5.058.566.66
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