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Illinois State Toll Highway Authority
Notes to the Trust Indenture Basis Schedules
December 31, 2007
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Maintenance and Operation Account
The Maintenance and Operation Account consists of the Operating Sub-Account and the Operating Reserve Sub-
Account. Moneys in the Operating Sub-Account are applied to operating expenses at the direction of the Tollway.
Revenues are transferred to the Operating Sub-Account to cover the expenses set forth in the annual budget for the
current fiscal year. One-twelfth of the operating expenses outlined in the annual budget are transferred to this
account once a month.
The Operating Reserve Sub-Account receives or retains an amount not to exceed 30 percent of the amount
budgeted for operating expenses in the annual budget for the current fiscal year. Monies in the Operating Reserve
Sub-Account are held as a reserve for the payment of operating expenses and are to be withdrawn if moneys are not
available to the credit of the Operating Sub-Account to pay operating expenses.
If the Tollway determines that the amount in the Operating Reserve Sub-Account exceeds that amount necessary,
the excess will be withdrawn from such Sub-Account and applied as revenues. By resolution, the Board voted to
maintain a $25 million fund balance in this account and has subsequently authorized a fund balance of $17 million.
Debt Service Account
The Debt Service Account consists of the Interest Sub-Account, the Principal Sub-Account, the Redemption Sub-
Account, and the Provider Payment Sub-Account, to be held by the Trustee.
Revenues are required to be deposited to cover the interest and principal amounts due and unpaid for bonds, credit
enhancement or qualified hedge agreements. Revenues must also be deposited to the credit of the Debt Reserve
Account in an amount sufficient to cause the balance in it to equal the debt reserve requirement.
The Debt Reserve Account receives funds to provide an amount sufficient to cause the balance in it to equal the debt
reserve requirement to make any required reimbursement to providers of reserve account credit facilities.
Renewal and Replacement Account
Revenues must be credited to the Renewal and Replacement Account in an amount set forth in the annual budget for
the renewal and replacement deposit. An amount set forth in the budget shall be determined based on
recommendations of the Consulting Engineer. Additional funds can be transferred to this account by the Tollway,
based on the capital plan expenditures.
Improvement Account
At the direction of the Tollway, the balance of amounts in the Revenue Fund are applied to the Improvement
Account, for allocations to projects, determined by the Tollway, until the balance in the Account is equal to the
improvement requirement.
