CONTINUING DISCLOSURE INFORMATION SANITARY DISTRICT OF THE CITY OF GARY, INDIANA. More specifically, matters relating to the issuance of:

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1 CONTINUING DISCLOSURE INFORMATION Operating and Demographic Data for: SANITARY DISTRICT OF THE CITY OF GARY, INDIANA More specifically, matters relating to the issuance of: Sanitary District of the City of Gary, Indiana Sanitary District Revenue Bonds, Series 2011A For the Year Ended December 31, 2015 II WHI CERTIFIED PU Co. PLLC II R 487 Broadway, Suite 207 Gary, IN 46402

2 APPENDIXB DEBT AND TAXATION

3 Gary Sanitary District Gary Sanitary District of the City of Gary, Indiana DEBT AND TAXATION (As of December 31, 2015) Outstanding Debt Percent Applicable Applicable Portion Direct Debt Gary Sanitary District 31,040, % $ Total Direct Debt Overlapping Direct Debt and Lease Obligations City of Gary Gary Community School Corporation Merrillville Community School Corporation 21st Century Charter School Gary Lake Ridge Schools River Forest Community School Corporation Lake County Park District Lake County 15,695,000 75,014,330 7,140,872 13,325,000 30,470,135 12,670,943 26,680, ,484, % % 84.15% % 8.26% 13.73% 10.62% 10.62% 15,695,000 75,014,330 6,009,044 13,325,000 2,706,158 2,011,884 3,104,577 7,817,461 Total Overlapping Direct Debt and Lease Obligations 125,683,454 Total Direct and Overlapping Direct Debt and Lease Obligations $ 125,683,454 Direct Debt Issuance Limitation The Sanitary District of the City of Gary, Indiana is limited to the issuance of direct debt, excluding lease obligations, 2% of the assessed valuation of property within the District. The following schedule details the debt capacity as of Di Gary Sanitary District Total Assessed Valuation payable 2015 One-Third of Assessed Valuation Payable 2015 Statutory Limitation of Assessed Valuation (1) Thereof Debt Subject to Limitation 2,272,853, ,617,875 15,l52,3,fl Issuance Margin 15,152,357 (1) The constitutional limitation of2% is based on an assessed value equaling one-third of true tax value. ', 1

4 Per Capita and Debt Ratio Analysis Population 2015 (July I, estimate) Assessed Valuation- (2014 payable 2015) 78,450 2,272,853,624 Total Direct Debt Amount $ Debt Per Capita Percentage of Debt/Assessed Valuation Total Overlapping Direct Debt and Lease Obligation 211,038,833 2, % Total $ 211,038,833 $ 2, % Total City Tax Rates (Per $100 Assessed Valuation) Total City of Gary, Indiana Tax Rates (by payable year) Gary Calumet City Sanitary Speical Districts Library - School District Townshi(! State and County Total Estimated Property Tax Caps as Approved by the Distressed Unit Appeals Board Homesteads Other Residential Non-Residential % 1.00% 1.00% % 1.25%

5 Analysis of Assessed Valuation Payable Year Lake County 20,970,436,046 20,614,809,425 20,415,984,365 20,469,341, ,003,793,994 Gary Sanitary District 2,272,853,624 2,272,853,624 2, 141,486,931 2,173,718,336 2,058,475,253 Record of Taxes Levied and Collected Gary Sanitary District Collection Year Current Taxes Levied Current and Delinquent Taxes Collected Percent Collected ,000, ,830 1,923,740 1,684,726 9,919,235 4,173,512 0 (2) 0 (2) 83.58% (1) 87.58% (1) 42.07% (1) (l) The collection rate is lower due to successful property tax appeals, refunds, late payment of taxes, and application of the tax caps (which reduces taxes collected). (2) The Distict is now fee based and does not levy a property tax. 3

6 Largest Taxpayers in the Sanitary District of the City of Gary, Indiana The following are the largest taxpayers in the Sanitary District of the City of Gary, Indiana based on the net assessed valuation of real and personal taxes payable in Payable 2015 Assessed Values 2014 Payable 2015 %of Assessed Values District Total Taxpayer Type of Business Total Assessed Value U.S. Steel Corporation Steel Manufacturing $ 435,482, % NIPS CO Utility 84,901, % Indiana-American Water Co. Utility 59,044, % Buffington Harbor Riverboats Entertainment 40,288, % Wisconsin Central Ltd (tkaej&e) Railroad 30,405, % Majestic Casino Entertainment/Casino 26,298, % Praxair Inc. Industrial Gas 18,625, % Indiana Bell Utility 14,568, % Lakeshore Dunes Apartment Rentals 13,465, % HJ Investment Company LLP Real Estate 11,404, % Source of Data and Information Statistical data and other information set forth under the caption "CITY DEBT AND T AXA TI ON" have been compiled by the District's financial advisor, Whittaker & Company, LLC from sources deemed to be reliable. 4

7 Largest Sewage Work Users The ten largest customers of the District for a twelve-month period ended December 2015 are as follows: Consumption Customer in OOO's Gallon Billed Revenue 1 Town of Merrillville 1,898,767 $ 2,516, City of Hobart 1,351,178 1,191, City of Lake Station 642, , US Steel Primary (BWAY) 373,794 3,720, US Steel Corp Sheet & Tin 153,558 1,531, Majestic Star Casino 38, , Methodist Hospital l\lorthlake 28, , MonoSol LLC 21, , Indiana American Water 18, , Gary/Chicago lnt'i Airport 12, , Source of Data and Information Statistical data and other information set forth under the caption "DEBT AND TAXATION" have been compiled by the District's financial advisor, Whittaker & Company, LLC, from sources deemed to be reliable.

8 Gary Sanitary District of the City of Gary, Indiana Major Employers The major employers in the Gary Sanitary District of the City of Gary, Indiana and number of employees as of December 31, 2015 are: Employer Type of Business Number of Employees U.S. Steel Corporation Steel Manufacturing 6,800 Gary Community Schools School System 3,163 Methodist Hospital Northlake Healthcare 3,081 City of Gary Municipality 2,319 Majestic Star Casino Entertainment Casino 1,050 NIPSCO Utility 808 U.S. Postal Service Postal Service 730 Indiana University l\lorthwest Education 400 Indiana American Water Co. Utility 182 Industrial Steel Construction Steel 150 Metal Manufacturing, LLC Building Products 150 Indiana Vocational/Tech College Education 140 Source of Data and Information Statistical data and other information set forth under the caption "CITY DEBT AND TAXATION" have been compiled by the District's financial advisor, Whittaker & Company, LLC from sources deemed to be reliable. 5

9 CERTIFICATE RE: ANNUAL FINANCIAL INFORMATION DISCLOSURE The l.lndersigned, on behalf of itself and the Sanitary District of the City of Gary, Indiana, under the Continuing Disclosure Undertaking Agreement dated as of November 3, 2011 (the "Agreement"), between the City of Gary, Indiana, and The Bank of New York Trust Company, N.A., as Counterparty, hereby certifies that the information enclosed herewith constitutes the Annual Information (as defined in the Agreement) which is required to be provided pursuant to Section 3(a) (2) of the Agreement. Dated: CITY OF GARY, INDIANA Mayor Karen Freeman-Wilson ATTEST: : i ' Ms. Vern E. White, Director of Administration Daniel F. Vicari, Executive Director

10 CERTIFICATE RE: ANNUAL FINANCIAL INFORMATION DISCLOSURE The undersigned, on behalf of itself and the Sanitary District of the City of Gary, Indiana, under the Continuing Disclosure Undertaking Agreement dated as of November 3, 2011 (the "Agreement"), between the City of Gary, Indiana, and The Bank of New York Trust Company, N.A., as Counterparty, hereby certifies that the information enclosed herewith constitutes the Annual Information (as defined in the Agreement) which is required to be provided pursuant to Section 3(a) (2) of the Agreement. Dated: CITY OF GARY, INDIANA Mayor Karen Freeman-Wilson ATTEST: Ms. Vern E. White, Director of Administration ~~Vr_ u. Daniel F. Vicari, Executive D~

11 CERTIFICATE RE: ANNUAL FINANCIAL INFORMATION DISCLOSURE The ljildersigned, on behalf of itself and the Sanitary District of the City of Gary, Indiana, under the Continuing DisclDsure Undertaking Agreement dated as of November 3, 2011 (the "Agreement"), between the City of Gary, Indiana, and The Bank ofnew York Trust Company, N.A., as Counterparty, hereby certifies that the information enclosed herewith constitutes the Annual Information (as defined in the Agreement) which is required to be provided pursuant to Section 3(a) (2) of the Agreement. Dated: CITY OF GARY, INDIANA ATTEST:... : - ng Ms. Vern E. White, Director of Administration Daniel F. Vicari, Executive Director _,.,