Financial statements for the year ended ...

Digitized by the Internet Archive

in 2012 with funding from

CARLI: Consortium of Academic and Research Libraries in Illinois

http://www.archive.org/details/financialstateme1966chic

4*5 N.&S. Form CO. 584 10M

RICHARD J. DALEY

MAYOR

OTTO H. LOSER

CITY COMPTROLLER

THOMAS P. MURPHY

DBPUTY COMFTROU.Ut

CITY OF CHICAGO

OFFICE OF THE CITY COMPTROLLER

ROOM 501. CITY HALL, CHICAGO. ILLINOIS 60602

TELEPHONE 744-4000

CHICAGO-O'HARE INTERNATIONAL AIRPORT

FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1?66

Prepared by the Accounting Division
Office of the City Comptroller
City of Chicago, Illinois
May 8, 1?67

CONTENTS

Pages
Exhibit A - Balance Sheet - December 31 , 1966 2

Exhibit B - Summary of Changes in Fund Balances - All Funds Other

than Revenue Fund, for the year ended December 31 , 1966 3

Exhibit C - Summary of Changes in Account Balances - Revenue Fund

for the year ended December 31? 1966 U

Exhibit D - Comparative Statement of Revenues and Expenses for the

years ended December 31, 1966 and 1965 5-6

Exhibit E - Reconciliation of "Balance of Net Income", Exhibit D,
to "Net Revenues" as Defined in Bond Ordinance for the
years ended December 31 , 1966 and 1965 7

Exhibit F - Details of Application of Proceeds of Revenue Bonds

for the year ended December 31? 1966 8

Notes to Financial Statements 9-H

UN

s

r»N

t—

8

t-

d

3

04

t»N

O

3

oo

O

UN

O

o

CM

SS'

*S5

o <4 PQ

a a i

o

•H m a

■p +> a>

go -h

(4 -p

U -H

<D -P H

•H a)
tflH-c

- co <d a>
o -p bo ©

og-S£
Si o -p
id o a
o o o
d •< O

vO

o

l/>

^o

f*\

O

Q c*\CO

^o

A

i

Q c— CO

CO

CO

O O Os

vrv

-3

cm

«*

O JU\

CO

.H

-^

f*N c*-u\

CO

O

CO

O H UN

o\

1^-

.H

•H 01

>,-P T) O H '

■ .r) <D O OJ

O O Ml +>

id o a) o

43 t. b O S3

On

i

8

o
o

VO

d

OS

CM

Os

1A

O

vO

-3-

<->

xO

CO

t—

U\

<M

O
CM

\0 H c\
CM <«N <"^
CM 0\ CM

CO

O C"\ CM

CM

CO

O CM m

CN.

o t~- cn

MD

O M3 CM

CM

CNO CO

CO

CO CO

o\

MD

Ml

co|

I

ID tn
X> Q

5-d
o s,

•a a)

h SCO

t. u\

» IA •
M CM H

U O

a o

a> +>

3

* i I •$$

*3

o

a
o
u

no

co

rH O
COXA

no

NO

-O sO
CO CO

XA

no

CO

CO O
CM NO
H CO

^O

CMXA

1

O en

m -3

ID

h e-

XA

c--co

f-

xO o
On H

O

r- cm

J

33

3

c\

CM

•\

H

\o

oo

rH

•€r>

r-

0O

O
O

d

H

CM

rA
XA

rA

•N

MD
H
OO

r-T

co

•UN

rA

■LA

XA

C^

CM

H

<r>

r-

-^nO

-^J

OO o\

On

rA tr\

ON

rA-^»

en

NO XA

•N •>

-4

IA I*-

OO

CM VO

0\

O OO

XA
XA

^

CM

cao

XA

rA CM

rA

CM rA

rA

IT, rA

XA

O Ov

oo

H ON

a

400

CM

CN.

xao oo

-ct

<A

oo oo r—

-^

d

CM no r—

rA O rH

C--

rA

XA

oo

c- On H

f-

NO

O -3 ON

-3

NO

no oo

XA

NO

NO CM

ON

NO

t—

■er>

«3-

XA

t^

rA

NO

(A

<

tA

CO

XA

oo

On

p

•rH

,0

O

XA

NO

XA

CM

xa

B

«•

<r>

H

CM

XA

XA

r-

r-

-^

rH

rH

CM

NO

NO

CO

OO

oo

On

OO

ON

On

oo

t~-

rA

C~-

f-

XA

3

O

ON

On

O

t~-

rH

H

XA

XA

-^

-cf

H

f-

XA

XA

CM

CM

CM

H

rH

•«r>

•€r>

■ee-

<r>

O
XA

CM OO O

O

$

NO O OO

XA

OOOr-

NO

d

OO NO f-

-3 O H

CM

CO

r--

rH

XA On rH

XA

NO

CM -=J ON

NO

CO

CM OO

H

C—

CM

rA

H
CM

■w-

■ee-

o

t^-

rH

rH

«?

■a

rA

P

XA

O

•H

H

-4

^

o

C^-

r~-

H

XA
CM

l

■Cr>

«»

CD
U H

a

rt O

a -p -h

o ^

■p -~~

O

•H O

o 13

o

M

a)
o

-P O,

at

el
-p £

a

a

p

3

0
0

8

rH

9

u.

NO

NO

On

rA

p

r—

O

•H

•4

»»

£>

^

XA

-4
O

rH

■60-

<r>

XI
CD
r*

0

p

t>>

i

2

g

d

a

0

e

CO

ID

I

h

in

CO X)

CD

2

ID

CO CD

J3

U

rH «

B5

-P

bo

^r^

O

O

a) co

U

-^ cH

0

1

Oh

a

3
0

NO -P
NO O,

perty
ing c
low)

H

•H

^

On a)

rH O

a)

c ■•

a)

•N

O U CD

U

0)

O CO

iH to

u
CD

^rH>

n of pr
enginee
ote A b

•8

1b

a
0

<r> m

s-» d

CO

-p

c:

fc

+3 -9

4>

d

0

»

co C

CO

iH CD

O S3

-p

d CD

u

-P Ch

•h -o^

a

a)

0 an

p

a

O O,

+3 CD

10

■p

0 «

K co

$Z£

0

!P

co

co

0

0

•H

NO
NO
ON

i

K

8 -p

CO

1

•H
■p

i

43 -fi

0
p

O CD tH
CD <H O
h CD

+3
O

d

H

-p"

•0

0 0

ftTj O

•a

S *i

CO -P

Q)

•0

0 §

+j

CD -P

CD

0

0

co d

•H CD

CO

CD

CflNH

Tj

rH

O

u

CD

O T)

&

T3 "M

a> 0

■P H

•H a)

O
U

CO

■a

0 <n
<H O

1

t-i CD

odd

rA

1

a)

H t> P-,

d

-p

^ O h

-p

g

10

CD
■P

s

0

E-i

CO +J
CD d

•• 3|

1

cr

d +3 43
0 <d a>

0

EH

4

^>

«H CD

O

m

£

CD

•d^^

£

(0
CO

•H

i1

tH CO

CD -p

g

e

0

•H cq

b4

CO
■P

•H -P CO
b> in -P

w

0

f*

j3 d

0

0

H

1

S

Pro

Amo

Amoun

g

H

rH
g

a>
p

+1 3
0 0

4

kk

E-"

i

CD X)

n

«!

-3-

Q

CM"

CM rH
CO O

MDvO
33

OJriO
rACO Os
U\CO Os

CM

CM

O

CO

H

en

CO

-^

rH

<NJ

r—

CO

-H

<A

-3

"f

r—

H

XA

IA

O

rH

VA

C—

m

-3

H

CM

■S3-

«•>

SO -4 C— CO rA CM
CO SO SO rA rA f>-
rA O-^fsO CM SO

MD -^ CM CM CO O
rH O CO CO CO

SO CM Os

3
IA

8

O

§

CO

m
CO
sO

H
O

£

3£

«sfo«s

f- o\

IA

H

rH

O

SO

sO

C—

o\

O

J

rH

CO

CM

CM

rA

CO

IA

rA

H

if*

<fr

no v

s-. 10

o

8

3

CO o\

CO CA
CO m

4

-3

8

H
CO

o

OS

<3

IA

cA

CM

CO

c^

o\

-3

Ov

3

CM

CM

SO

CO

CO

IA

CO

CO

-3

3

CM
H

OS
CM

-^t

_=t

t^

1A

IA

•A

H

H

C~-

CM

«*■

<&

O

rH

o

CO

g

3

o

m

o

CO

Os

Os

-=t

■6*

«*

r^co O

OS OslA

3

Os en CO
CM rA t~-
-3 Os\A

CM O CM

o

IA
H

CM

CO

OXA
JO

CM sO
XAOs

-3 os

CM O
XACO

IA

rr,

-^

CO

CO

(A

l

LA

Ml

(>S

IA

H

r-

CM

«y

rH

CO

3

CO <B O

m o

-poo

>S te H

8

8

o

o

Os

CM

IA

CM

CM

Os

C--

3

rA

rH

<8-

HOOCK
SO 1ACO
rH O CO

•P

s§

« O

-p o

rHS

■p -p

25,

O CM CO IA CM

CM t— rA O t—

CO CM so CO so

O CM CM rnO

rH O 0O JO

SO Os OS

t

o

3s

3 So

Os t> M

■ - at i

; :.
O

in O

°. O i

a -a <h
ETJ °

t* a 3

CO a -

<|rH CD -
> 0,-P T3

ID -H
P CD

EXHIBIT D
Page 1 of 2

CHICAGO-O'HARE INTERNATIONAL AIRPORT
COMPARATIVE STATEMENT OF REVENUES AND EXPENSES
FOR THE YEARS ENDED DECEMBER 31, 1966 AND 1965

Period

T?56~

T?6T

Increase

or

(Decrease)

REVENUES;

Flight "fees exclusive of ramp rentals
Rentals, utility sales, concessions and income
from investments

Total

EXPENSES, excluding fixed charges:

Salaries and wages-
Department of Aviation - Administrative
Department of Aviation - Operating
Corporation Counsel's office
Comptroller's office
Fire department
Police department
Indirect administrative and general

Fire department supplies and maintenance
Gasoline

Heat, light, power and water
Insurance - general

Insurance - workmen's compensation and disability-
Materials and supplies
Professional services
Provision for doubtful accounts
Provision for pensions
Bank service charges
Financial publication
Repairs and maintenance
Telephone and telegraph
Tools
Travel
Vehicles

Machinery and equipment
Miscellaneous
Indirect administrative and general expenses:

Department of Aviation

Other

Total operating expenses, excluding fixed
charges

NET OPERATING INCOME BEFORE FIXED CHARGES
AND APPLICATION OF REVENUES

$ 3,63U,6Uii.05 $ U, 295,617. 15 ($ 660,973.10)
l8,3UU,7U5.1k 17,2U2,llU.llt 1,102,631.00
$21,979,389.19 $21,537,731.29 $ l0a,657.9O

$ 318,360.79 $ 313,302.32 $ 5,058.U7

2,965,106.25
U3,278.85
23,505.30
1*77,590.68
10*9,352.00
213,859-69

2,7UO,3l6.06

53,3lU.39 (

22,921.32

358,335-98

U06, 728.00

19U,7U5.90

22U,790.19
10,035.5U)
583-98

119,25*1.70
U2,62U.OO
19,113.79

$ 14,1*91,053.56 $ li,089,663.97 $ U01,389- 59

3,656.75

11,552.75

906,LU3-77

201,096.28

85,01U.52

350,165.80

373,792.56

90,596.00)

Uoi,825-l6

51,851.59

12,382.93

1,128,233.05

12,979-Ul

2,586.57

5,898.80

106,257.67

37,U15-2U

76, 560.UU

36,U60.U9
213,859.69

9,832.97 (
12,035.03 (
92lt,l57.26 (
18U,612.00
72, 516. Oli
285,972. U9
2lO-,62k.6l
101,892.80 (
356,663.91
28,051.15
9, 018.1k
1,ULU,953.35 (
11,582.18
2,U98.37
U, 122. 38
202,369.67 (
153,371.18 (
58,111.73

35,510.70
19U,7U5.90

6,176.22)
182.28)

18,013.U9)
16,U8U.28
12,U98.U8
6H,193.31
132,167.95
192,U88.80)

U5,l6l.25
23,800.Uli
3,36k- 79
286,720.30)
1,397.23
88.20
1,776.U2
96,112.00)
115, 955- 9k)
I8,kk8.71

9U9.79
19,113.79

( ) Indicates negative amount

$ 8,U18,191.03 $ 8,393,305.83 $ 2k, 885. 20

$13,561,198.16 $13,lkk,k25.k6 $ kl6,772.70
(Continued to next page)

-5-

CHICAGO- 0' HARE INTERNATIONAL AIRPORT
COMPARATIVE STATEMENT OF REVENUES AND "EXPENSES
FOR THE YEARS ENDED DECEMBER 31, 1966 AND 1963

EXHIBIT D
Page 2 of 2

VET OPERATING INCOME BEFORE FIXED CHARGES
AND APPLICATION OF REVENUES (brought forward)

PROVISION FOR FIXED CHARGES:
Interest on revenue bonds
Premium on bonds retired
Depreciation - all properties
Amortization of deferred engineering cost

EXPENSES IN EXCESS OF INCOME

3PERATING REVENUES USED FOR Capital
improvements (Note D)

Period

T^6"

T?oT

Increase

or
(Decrease)

BALANCE (EXHIBIT E)

$13,561,198.16 $13,1UU,1;25.U6 $ Ul6,772.7Q

$ 6,881,137.69 $ 7,057,500.00 ($ 176,362.31)

178,U10.60 95,832.50 82,578.10

6, 607, 328. 5U 6,U09,53U.U5 197, 79k. 09

U9,068.08 U9,068.08

$13,7l5,9Uli.9l $13,611,935.03 $ 10U,009.88

($ l51i,7U6.75) ($ 1*67,509-57) $ 312,762.82

1,3U2,210.87 277,886.16 1,06U, 321+.71

($ I,li96,957.62) ($ 7ii5,395.73)($ 751,561.89)

See notes to financial statements.

-6-

CHICAGO-O'HARE INTERNATIONAL AIRPORT
RECONCILIATION TO "NET REVENUES" ""
AS DEFINED IN BOND ORDINANCE
FOR THE YEARS ENDED DECEMBER 31, 1966 AND 1965

EXHIBIT E

1966

196^

Balance of expenses in excess of income (Exhibit D)

Add (deduct) adjustments to reflect ordinance basis
of accounting:
In respect of items included above in determination
of income and expenses:
Depreciation of fixed assets and amortization of

deferred engineering costs
Interest on revenue bonds

Interest earned on investments of reserve maintenance
and emergency reserve accounts

In respect of items not included above in determination
of income and expenses:
Carryover from revenue of preceding year as
reduction of flight fee requirements

"Net Revenues" as defined in bond ordinance

Allocation of net revenues (In order of priority):
Interest Account
Debt Service Reserve Account

Sinking Fund Account - Minimum sinking fund payment
Reserve Maintenance Account
Emergency Reserve Account

To reduce flight fee requirements - future periods
Remainder (allocated to Sinking Fund Account)

Total

($ 1,1+96,957.62) ($ 71+5,395-73)

6,656,396.62
6,881,137.69

6,1+58,602.53
7,057,500.00

( 1+26,101.62) ( 292, 093- 9k)

1,532,107.61
$13,11+6,582.68

$ 6,881,137-69

l,93l+,000.00
71+5,000.00
888,108.08
382,81+9-60

2,315,1+87.31

$13,11+6,582.68
(Exhibit C)

1,809,768.53
$11+, 288, 381. 39

$ 7,057,500.00

1,756,877-50

1,81+7,000.00

71+5,000.00

880,61+8.78

1,532,107.61

1+69,21+7.50

$li+,288,38l.39

Total allocation to Sinking Fund Account:
Minimum payment
Additional allocation of remaining net revenues

See notes to financial statements.
( ) Indicates negative amount.

$ l,93l+,000.00
2,315,1+87.31

$ 1,81+7,000.00
1+69,21+7.50

$ l+,2l+9,l+87.31 $ 2,316,21+7.50

-7-

EXHIBIT F

CHICAGO-O'HARE INTERNATIONAL AIRPORT

DETAILS OF APPLICATION OF PROCEEDS OF REVENUE BONDS
FOR THE YEAR ENDED DECEMBER 31, 1966

Chicago-0 ' Hare International Airport

Construction Fund

General

Hangar

Construction

Account

Construction
Account

Total

BALANCE, JANUARY 1, 1966

$2,991.12 $ 977,U35.1i8 $ 980,126.60

ADDITIONS;

Interest earned on investments
To close balance of Hangar Construction Account
to General Construction Account

DEDUCTIONS:

Expenditures for:

Hangars, terminals and other facilities
Engineering fees

Elimination of amounts previously included
in accounts payable, due to reductions in
final contract settlements

Total deductions

AVAILABLE BALANCE OF PROCEEDS, DECEMBER 31, 1966

Balance at December 31, 1966 represented by:
Cash on deposit

U. S. Government securities at cost
Due from other funds

Total

Less - Accounts and contracts payable

BALANCE

( 2,991.12)
$ -

$

$

8l,U06.23
2,991.12

8l,U06.23

$1 , 061,832 . 83 $1,061,832.83

$ 22,320.00
l,876.6ii

( 7,399.93) (

22,320.00
1,876.6U

7,399-93)

$ 16,796.71 $ 16,796.71
$1,0^,036.12 $l,Ol;5,Q36.12

$ 13,226.99

1,211;, 931. 19

8,233.32

$1,236,391.50

191,355.38

$ 13,226.99

1,21U,931.19

8,233.32

$1,236,391.50

191,355.38

$l,OU5,036.12 $l,OU5,036.12
(Exhibit B)

See notes to financial statements.
( ) Indicates negative amount.

-8-

CHICAGO-O'HARE INTERNATIONAL AIRPORT
NOTES TO FINANCIAL STATEMENTS
December 31? 1966

Note A - General:

The issuance of Chicago-O'Hare International Airport Revenue Bonds was authorized
by an ordinance adopted December 29, 1958, and by supplemental ordinances dated
February 1, 1961, and July 13, 1962. The purpose of the issues was to provide funds
for the extension and improvement of the Airport and its facilities. The proceeds of
the issues had been substantially expended for such purposes at December 31, 1966,
except for $l,OU5,036.

At December 31, 1966, the total principal amount of Revenue Bonds authorized
amounted to $1^^,000,000 of which $H|9,000,000 had been sold. Of the amount sold,
$7,030,000 had been called or purchased by tender and retired as of December 31, 1966
($U, 990, 000 during 1966), leaving $11*1,970,000 outstanding as of December 31, 1966.

Operating revenues from flight fees, rentals, concessions, and other sources
(accounted for collectively through the Revenue Fund) are restricted as to use by the
Bond Ordinance for the purposes enumerated in Note BU. For each specified purpose, a
separate account is provided within the Revenue Fund.

The financial statements include amounts in respect of Airport facilities paid
for by the City, State, and Federal governments and private parties (totaling
approximately $63,000,000 at cost - carried in the accounts net of accumulated
depreciation at approximately $5U, 100,000 at December 31, 1966) as well as those
acquired with proceeds of the Revenue Bonds.

Note B - Accounting Policies:

1. United States Government securities:

The aggregate market value of the securities at December 31, 1966, is approximately
$375,000 in excess of cost. Accrued interest is included only on those securities
having stated interest rates. Discounts and premiums are recognized at time of maturity
or disposition.

2 . Property and Equipment :

All land acquisitions have been made with money provided by the City, State, and
Federal governments. Earthwork and landscaping paid for with Revenue Bond proceeds
money has been charged to the land account. Land is considered to be devoted to Air-
port use simultaneously with the acquisition thereof. Interest charges are not
capitalized on land purchase costs and on attendant legal and appraisal costs. Interest
is capitalized from the commencement of work through the year of completion on land
improvements provided through the use of City money.

Capitalized expenditures from Revenue Bond proceeds include the cost of: construc-
tion; engineering fees; legal expenses; financing and other incidental expenses; discount,
less premium, on Revenue Bonds issued; and interest on Revenue Bonds through December
31, 1961.

All replacements of vehicles, furnishings, signs, and other equipment are expensed
during the year of acquisition in accordance with the terms of the Ordinance.

-9-

Grants from the State and Federal governments are recognized only as received.
As of December 31, 1966, a maximum of $3,396,000 was available from such grants.

Depreciation is provided in respect of facilities other than land on a straight-
line basis, using annual rates calculated to amortize the cost of the individual assets
over their estimated useful lives commencing in the year following the year of acquisi-
tion or completion of construction.

Under the terms of the Ordinance, only depreciation and amortization applicable
to facilities acquired with City money are taken into account in establishing flight
fee revenue requirements.

3. Interest on City's Investment in Airport Property:

The Ordinance provides that "airport expense", for the purpose of computing flight
fees collectible from the airlines, shall take into account interest on money of the
City invested in property and equipment and deferred engineering costs. (See Note Bhf)

U. Allocation of Operating Revenues:

The Ordinance requires the allocation of revenues for specified purposes in the
following order of priority:

a. Ordinary costs of operation and maintenance, but not in excess of the
amount budgeted by the City for such purposes.

b. Amounts equal to interest on bonds outstanding. During 1966, interest
of $6,881,137 was paid.

c. The debt service reserve must be maintained at an amount equal to two
years' interest requirement, and was fully funded at December 31* 1965*
through allocations made in prior years. Bonds in the principal amount
of $U, 990, 000 were called or purchased by tender and retired during 1966;
accordingly, the interest requirement ($U72,590) applicable to the bonds
retired during 1966 was transferred to the sinking fund.

d. For the sinking fund, a minimum payment ranging from $1,93H,000 for 1966

to $8,500,000 in 1998. Additional amounts are allocable to the sinking fund
as explained in note BUc ($1*72,590 for 1966) and in note Blih ($2,3l5,U87
for 1966) . The total amount added to the sinking fund from all sources during
1966 totaled $U, 722,077.

e. For reserve maintenance, $7U5,000 annually until $3,10lj.,l66 is accumulated.
Major repairs, renewals, and replacements may be paid for out of these funds.
During 1966, expenditures for these purposes totaling $15U,129 were made
from this account .

f. For the emergency reserve, amounts (total for 1966 - $888,108) equal to
the annual provisions for (a) depreciation and amortization on assets
acquired with City money (for 1966 - $27U,5U9) and (b) interest on City
money invested in Airport assets (for 1966 - $613,559). These funds may
be used to abate landing fees in the event the Airport is closed.

-10-

g. To the extent that revenues for the year as defined by the Ordinance,

including deferred income from the preceding year, exceed "airport expense"
as defined, the excess shall be considered deferred income and as revenues
of the next succeeding year. In accordance with this provision, revenues
of $382,850 for the year ended December 31, 1966, have been so deferred in
the Revenue Fund, to be carried over to reduce flight fee revenue require-
ments for 1967.

h. Any remaining revenues, after making the aforementioned allocations, are
to be allocated to the sinking fund. For the year ended December 31, 1966,
$2,3l5,U87 of the remaining revenues were so allocated.

Note C - Revenue Bond Retirement:

Money in the sinking fund account is to be applied as rapidly as practicable to
the retirement of bonds by call, purchase in the open market, or by tender.

Bonds may be redeemed to December 31, 1973, by call from funds in the sinking
fund account at prices ranging downward from 103$ of principal amount in the case of
Series B bonds and 10U-3/U$ in the case of Series A bonds, plus accrued interest, or
by purchase in the open market or by tender at prices not in excess of call prices.
After January 1, 197U, bonds also may be redeemed from resources other than revenues
at prices ranging downward from 103-1/2$ of principal amount in the case of Series B
bonds and 10\\-3>/k% in the case of Series A bonds, plus accrued interest.

During the year, bonds in the principal amount of $2,608,000 were called and
retired at prices stipulated in the Bond Ordinance (Series A Bonds - 10l±-3/U$ of
principal amount; Series B Bonds - 103$ of principal amount). Bonds in the principal
amount of $2,382,000 were purchased by tender at a net premium of $55,861.

The cash equal to the principal portion ($U, 990, 000) of the bonds called or
purchased by tender for retirement was provided by the sinking fund. The premium
($178,1*11) paid on the bonds called or purchased by tender is considered an expense
for the year and was charged against operating revenues.

Note D - Use of Operating Revenues:

The Bond Ordinance does not permit the use of operating revenues for capital
improvements; however, the Airlines Representative has agreed to this practice which
has the effect of increasing flight fee requirements.

Note E - Contingent Liabilities:

The amounts shown in the balance sheet as accounts payable of the Bond Proceeds
Fund represent the cost of work performed and services rendered, but not paid for to
December 31, 1966. All contracts for Airport facilities to be financed by Revenue
Bond money were substantially completed at December 31, 1966, although final settle-
ment had not yet taken place.

Certain contractors who were engaged in Airport construction under the Revenue
Bond program have presented claims or filed suit for approximately $6,000,000 in
excess of contract amounts. The City of Chicago has refused payment of these claims.
No amounts have been recorded in the financial statements for any additional payments
which may arise from these claims or suits.

-11-

3 5556 038 785804

/

3/15/2010
WT 192570 1 35 00

i

a.

i

C9

GAYLORD