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CITY COUNCIL 2013/11/04 Agenda THE CITY OF LAKE FOREST CITY COUNCIL AGENDA Monday, November 4, 2013 7:30 pm City Hall Council Chambers Honorable Mayor, Donald Schoenheider Kent Novit, Alderman First Ward Stanford Tack, Alderman Third Ward Catherine Waldeck, Alderman First Ward Jack Reisenberg, Alderman Third Ward David Moore, Alderman Second Ward Robert Palmer, Alderman Fourth Ward George Pandaleon, Alderman Second Ward Michael Adelman, Alderman Fourth Ward CALL TO ORDER AND ROLL CALL 7:30 p.m. PLEDGE OF ALLEGIANCE REPORTS OF CITY OFFICERS 1. COMMENTS BY MAYOR A. Appointments by Mayor CROYA BOARD A Volunteer Profile sheet can be found on page 14 RECOMMENDED ACTION: Approve appointments recommended by Mayor Schoenheider B. Girls Cross Country Team - Deerpath Middle School State Champions Coach – Martha Sostre Congratulations to Lake Forest High School Tennis Team who are State Champions 2. COMMENTS BY CITY MANAGER 3. COMMENTS BY COUNCIL MEMBERS A. Finance Committee Audit Committee Report: Fiscal Year 2013 Annual Financial Report NAME OF MEMBER APPOINT WARD John F. Maher Appoint n/a 1 November 4, 2013 City Council Agenda PRESENTED BY: Michelle Moreno, Audit Committee Chairman STAFF CONTACT: Elizabeth Holleb, Finance Director 847-810-3612 PURPOSE AND ACTION REQUESTED: Staff requests receipt of the audit report for the fiscal year ended April 30, 2013. BACKGROUND/DISCUSSION: The Comprehensive Annual Financial Report (CAFR) for the fiscal year ended April 30, 2013 is provided in your packet beginning on page17 A bound copy of the CAFR will be delivered to the City Council under separate cover. The document has been reviewed by the Audit Committee with McGladrey LLP, the City’s independent audit firm, and has been accepted by the Audit Committee. The City has received an unmodified opinion from McGladrey LLP. The City has been awarded the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for thirty-four consecutive years. This year’s report will be submitted to GFOA for consideration of a thirty-fifth award. The Audit Committee met four times in 2013 and highlights of those meetings as well as the audit report will be presented this evening by Audit Committee Chairman Moreno. COUNCIL ACTION: Receipt of the audit report for the fiscal year ended April 30, 2013. B. Public Works Committee 1. Request for Early Purchase of Equipment Included in the F.Y. 2015 Capital Equipment Budget PRESENTED BY: Michael Thomas, Director of Public Works 847.810.3540 PURPOSE AND ACTION REQUESTED: In the late summer of each year, staff reviews maintenance costs and overall quality of the City’s fleet. From there, the ten year capital equipment replacement spreadsheet is updated and a draft list of equipment to purchase for the upcoming fiscal year is developed. Although last year at this time staff had estimated $702,000 worth of general fund equipment to purchase for FY2015, the updated list for next year has been reduced to $523,000. This is a result of the fleet being in better shape than expected and the quality work Fleet Maintenance continues to provide on a daily basis. Vehicles on the list are typically specified and placed out to bid in March with subsequent approval by City Council in April. This allows staff time to order the approved pieces and receive them in early fall after the typical four to six month build time. There are two separate line items for F.Y. ’15 that, due to their availability, staff is requesting early purchase of both. BACKGROUND/DISCUSSION: Staff is requesting City Council authorization to purchase two Chevrolet Tahoe’s for the Police Department. Car # 3 and # 9 are Chevrolet Impalas with approximately 83,600 and 82,000 miles respectively. Both units are used for patrol and investigation purposes and will be replaced when they have each accrued 100,000 2 November 4, 2013 City Council Agenda miles. The Department has eleven marked police cars, four of which are Chevrolet Tahoe’s; the remaining seven are Impalas. For informational purposes, attached on page 201 is a recent Chicago Tribune article discussing the significantly higher use of SUV’s by police departments throughout the North Shore. The Tahoe provides a lifted tailgate for sheltered workspace, a desktop area with access to maps and whiteboards, improved access to multiple radios, and a charging station for needed lights and spare radios. Various rack systems are used to make investigative equipment easier to organize and retrieve. Since its inception in 2008, the use of a Tahoe in Lake Forest’s Police Department has been extremely beneficial. Over the life of the vehicle, the Tahoe accrues one-and-a-half times the mileage compared to the Impala before it is replaced. The Tahoe’s trade-in value is significantly higher than that of the Impala. The Tahoe is estimated to receive 50% ($15,000) of its original purchase price after four years as compared to 17% for the Impala ($4,000) after only three years of use. Staff has been notified that Chevrolet will no longer manufacture the Chevrolet Impala for police purposes beginning in March 2014. That announcement led staff to review the various possibilities for replacing car #3 and car #9. Staff considered two new Ford products as well as the Chevrolet Tahoe. The Tahoe’s have been very reliable, high quality units thus far. Because they are built on the Silverado truck platform, they automatically have a larger and stronger exhaust system, brakes, suspension, and steering components as compared to the Impala. Based on our fleet’s history, the Impala will run for 3+ years and accrue 100,000 miles before beginning to have increased maintenance costs. In comparison, the Tahoe’s operate for 4+ years and accrue 150,000 miles before they are replaced. In addition for its analysis, staff investigated the two new Ford products and compared their purchase price to that of the Tahoe. Below is a chart summarizing the purchase price cost per mile on all four vehicles: Impala Taurus Explorer Tahoe Cost $23,453 $27,607 $30,015 $30,616 Miles 100,000 100,000 100,000 150,000 Cost / Mile $0.23 / mile $0.28 / mile $0.30 / mile $0.20 / mile The City has recently purchased one police package Taurus and Explorer. Since they are brand new vehicles offered by Ford, Fleet Maintenance does not have a good basis for long term maintenance costs. In addition, both vehicles are built on a car platform. Based on historical practices for vehicles using the car platform, this would lead staff to believe that they both would be expected to be replaced at the 100,000 mile mark. General Motors (GM) recently announced that the Tahoe was receiving a total redesign and the 2015 models would be sold to the public beginning in early 2014. As a result, GM stopped accepting Tahoe orders for fleet customers in August of this year, to include orders for all police Tahoe’s. GM notified fleet customers that they do not foresee fleets being able to place an order for a Tahoe for twelve to fifteen months from now. They simply want to sell the Tahoe’s at a higher price to the general public and when the demand reduces, they will open up build slots for fleet customers. Knowing that the Tahoe will not available to purchase next year for police departments throughout the State, the State Bid vendor purchased additional stock units to sell on a first-come, first serve basis; the dealership only has seventeen units remaining. 3 November 4, 2013 City Council Agenda Recognizing that the State police, the City of Chicago, and many county and municipal police departments throughout the State use the Tahoe’s, staff is requesting a purchase of the two units that are budgeted in the FY2015 Capital Equipment Replacement Program. PURPOSE AND ACTION REQUESTED: The Streets Section has one hot patch machine it uses every year to repair the numerous potholes that surface after the winter months. The current unit has been in service since 1996 and has reached it useful life. The machine is constructed with a double steel wall that with the use of propane tanks, heats up the cold asphalt mix. This allows Streets Section personnel to place, work, and roll the material into various size holes in a street or parking lot. The outer inside wall and floor have rotted to point where they need to be replaced. Replacing such steel is so significant, it would require a total reconstruct of the entire structure. The heat that escapes the inner wall is beginning to warp the outside walls and the material inside is not retaining a workable temperature. The unit was purchased from Spaulding Manufacturing located in Saginaw, Michigan. They are still in business today and continue to build quality asphalt application equipment. Staff contacted Spaulding Manufacturing to request a quote to replace the current unit. In reviewing the specifications of the replacement machine, staff was told that Spaulding Manufacturing, with numerous orders already in place, has delivery of a new unit four months out. Four months from early November is when Streets personnel begin to repair potholes from ice damage each year. As a result, staff is requesting that a replacement hot patch machine be ordered now with the anticipated delivery and training to occur in late February, 2014. The existing machine has lasted seventeen years. With the material used in this equipment and the heat it generates, this far exceeds staff’s anticipated replacement timeframe of ten years. Therefore, staff believes that the purchase of a replacement hot patch machine from Spaulding Manufacturing with its overall long term quality, will last the City the next 15+ years. BUDGET/FISCAL IMPACT: Dollars to fund these purchases will come from savings realized from other projects funded in this fiscal year’s capital fund. Both of these topics were discussed and purchases were approved at the October 22 Public Works Committee meeting. Staff is requesting authorization of the purchase of two police package Tahoe’s from the State bid vendor, Miles Chevrolet, in the amount of $61,232. In addition, staff requests City Council waive the bidding process and authorize the purchase of a replacement pothole patching machine from Spaulding Manufacturing in the amount of $28,500. FY2014 Funding Source Account Number Account Budget Amount Requested Budgeted? Y/N Capt. Fund 311-5001-450-75-49 $89,732 $89,732 Y 4 November 4, 2013 City Council Agenda COUNCIL ACTION 1: Waive the bidding process and authorize the purchase of two police package Tahoe’s from the State bid vendor, Miles Chevrolet, in the amount of $61,232. COUNCIL ACTION 2: Waive the bidding process and authorize the purchase of a replacement pothole patching machine from Spaulding Manufacturing in the amount of $28,500. C. Property and Public Lands Committee (PPL) 1. Consideration of Recommendations from the Property and Public Lands Committee of the City Council Regarding Redevelopment of the Former Municipal Services Property on Laurel Avenue (Approve a motion in support of the recommendation.) PRESENTED BY: Alderman Reisenberg, Chairman of the Property and Public Lands Committee PURPOSE AND ACTION REQUESTED Three recommendations are presented to the City Council by the Property and Public Lands Committee (PPL) for consideration. The first recommendation is to accept the revised Development Parameters for the former Municipal Services property as recommended by the Plan Commission. The second recommendation is to authorize the issuance of a Request for Qualifications in an effort to select a short list of qualified developers who would be invited to engage in a more detailed plan development process. The third recommendation is to begin the formal decision making process on whether or not to establish a Tax Increment Financing District in support of redevelopment of the site. Importantly, at this time, no specific plan has been developed for the former Municipal Service property and no plan is before the Council for consideration at this time. Public hearings will be held prior to the various decision points that will occur throughout the redevelopment process. BACKGROUND AND DISCUSSION At the direction of the Mayor and City Council, the PPL has spent a number months considering the appropriate process and timing for moving forward with the redevelopment of the City’s former Municipal Services property. Earlier plans to seek a developer for the property were put on hold due to unfavorable market conditions and the desire of the City Council to achieve a quality development that is right for the community, while at the same time, assuring an appropriate return from the property both in the short term and long term. In July of this year, the Plan Commission completed a review of the previously accepted Development Parameters and recommended revisions to allow for greater flexibility and creativity, and to encourage developer interest. The revised Development Parameters are included in the Council packet beginning on page 204 along with a timeline for the redevelopment process. 5 November 4, 2013 City Council Agenda COUNCIL ACTIONS: Approve a motion: 1) accepting the revised Development Parameters for the former Municipal Service property; 2) directing the issuance of the Request for Qualifications and 3) directing staff, the City’s consultant and the Plan Commission to begin the formal public process for consideration of the establishment of a Tax Increment Financing District 4. OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS 5. ITEMS FOR OMNIBUS VOTE CONSIDERATION 1. Approval of the October 21, 2013 City Council minutes. A copy of the minutes begins on page 213 of your packet. 2. Check Register for September 28- October 25, 2013 Fund Invoice Payroll Total General 414,114 1,054,766 1,468,880 Water & Sewer 84,018 108,152 192,170 Parks & Recreation 109,750 308,878 418,628 Capital Improvements 404,992 0 404,992 Bond Funds - Projects 265,682 0 265,682 Motor Fuel Tax 17,499 0 17,499 Cemetery 21,623 17,084 38,707 Senior Resources 13,183 19,906 33,089 Deerpath Golf Course 48,771 40,719 89,490 Fleet 67,451 40,967 108,419 Debt Funds 70,144 0 70,144 Housing Trust 0 0 0 Park & Public Land 185,000 0 185,000 All other Funds 432,523 143,490 576,013 $ 2,134,751 $ 1,733,961 $ 3,868,712 3. Determination of an Estimate of the Amount of Revenue to be generated from Property Taxes for the 2013 Calendar Year in Accordance with the Truth in Taxation Statute and Establishment of a Public Hearing Date for the 2013 Tax Levy (if Required) PRESENTED BY: Elizabeth Holleb, Finance Director (847-810-3612) PURPOSE AND ACTION REQUESTED: Staff requests City Council approval of a non-binding estimate of the amount of revenue to be generated from property taxes in calendar year 2013 and setting of a public hearing date if this estimate exceeds 105% of the prior year’s tax extension in accordance with State Statutes. BACKGROUND/DISCUSSION: Under the Truth in Taxation Act, the City Council is required to determine the estimated amount of money to be raised by taxation twenty (20) days 6 November 4, 2013 City Council Agenda prior to the adoption of the annual tax levy. The amount determined is an estimate, and may be increased or decreased under the statute, provided that any increase does not exceed 105% of the prior year’s tax extension without the required notice and public hearing. This estimate is preliminary and initiates the public process for the 2013 tax levy by establishing an estimated amount from which staff can prepare a proposed levy ordinance. The tax levy ordinance will be considered by the City Council on November 18 and again on December 2, 2013. The 2013 property tax levy estimate is as follows: Levy 2012 Extended 2013 Levy Estimate % Increase (Decr.) Aggregate Levy $ 25,611,568 $ 26,690,211 4.21% Debt Service Levy 1,688,413 1,959,713 16.07% TOTAL LEVY $ 27,299,981 $ 28,649,924 4.94% The increase in the aggregate levy is comprised of the 1.70% overall increase in compliance with the tax cap applicable to 2013 levies under the Property Tax Extension Limitation Law (PTELL); increase due to new construction as estimated by the Lake County Assessor’s Office; and an increase to be allocated to the City’s Capital Fund reducing the need for bond financing until such time that it may be needed to replace State revenues that could be impacted in the future due to the State’s current financial crisis. The total levy as estimated above would result in a $152 increase in the tax bill of an average home ($800,000 market value). No public hearing would be required under the Truth in Taxation Act. Increases in the City’s property tax levy to address capital needs and reduce the City’s dependency upon the State for General Fund operating budget revenues will require an amendment to Ordinance No. 2008-08. This amendatory ordinance will be brought before the City Council for consideration on November 18 and December 2 in conjunction with the first and second reading of the 2013 tax levy ordinance. COUNCIL ACTION: Determination of an Estimate of the Amount of Revenue to be generated from Property Taxes for the 2013 Calendar Year in Accordance with the Truth in Taxation Statute. 4. Approval of expenditure of remaining Emerald Ash Borer funds for the Annual Tree and Stump Removals for FY14 STAFF CONTACT: Peter Gordon, City Forester (810-3563) PURPOSE AND ACTION REQUESTED: Staff requests approval for expenditure of the remaining funds for the annual tree and stump removals for FY14. BACKGROUND/DISCUSSION: At your July 1, 2013 City Council meeting, staff presented the bid results for the removal of trees and stumps on City streets, City-owned properties and unimproved easements. At that time, $150,000 was budgeted and approved. Staff recommended that Council approve partial expenditure of $100,000 for tree and stump 7 November 4, 2013 City Council Agenda removal. And if necessary, staff would seek additional approval to expend the remaining budgeted funds. Original projections made during the July 1 City Council meeting suggested that approximately 600 infested ash trees would need to be removed contractually this year, with an additional 350 trees projected to be removed by the City’s Forestry section. However, due to the exponential spread of EAB (Emerald Ash Borer) the City has identified and tagged 1,000 public ash trees on City streets. To date, the City’s contactors have removed 407 trees totaling nearly $100,000. The use of the remaining funds would allow for the removal of an additional 137 trees by contract. City crews have removed 154 trees to date and will continue to remove the remaining balance of tagged trees over the winter months. On page 218 is an overview of EAB expenditures for FY14 removals, treatment and planting and the proposed funds for FY15 which will be considered at the November 18th City Council Budget meeting. BUDGET/FISCAL IMPACT: Funding for the annual tree and stump removal contract is budgeted in the Forestry Fund 311, Capital Projects. Below is a breakdown of the expenditures to date for the removal of trees and stumps. FY14 Tree Removal and Stumping expenditures to date: CONTRACTOR TOTALS Landscape Concepts Management $54,791 Nels Johnson Tree Experts $7,295 Kinnucan $33,798 TOTAL $95,884 Below is an estimated summary of the Project budget: FY ’14 Funding Source Amount Budgeted Amount Requested Budgeted? Y/N Forestry Operating Fund 311 $ 150,000 $ 50,000 Y The bid results for the tree and stump removal were reviewed at the June 17 Property and Public Lands Committee meeting, the June 18 Parks and Recreation Board meeting, as well as at July 1, City Council meeting and were unanimously approved. COUNCIL ACTION: If determined to be appropriate by the City Council, staff recommends that the City Council approve the expenditure of the remaining $50,000 for FY14 tree and stump removal of trees on City streets, City owned properties and unimproved easements. 8 November 4, 2013 City Council Agenda 5. Consideration of waiving the bidding process and authorizing the purchase of Replacement Video Recording Systems for Police Squad cars. 2. Approval of Server Purchase. STAFF CONTACT: James Held, Chief of Police 847.810.3801 PURPOSE AND ACTION REQUESTED: Staff is requesting City Council approval to award the state bid vendor, CDS Office Technologies (state master contract CMS8291640), the purchase of the Panasonic Arbitrator in-car digital video camera system for all patrol vehicles. Further we are requesting approval to purchase a server from the low bidder, SHI, to support and operate the camera system. BACKGROUND/DISCUSSION: The police department uses in-car video cameras to record and preserve evidence for criminal prosecution, especially for driving under the influence and other traffic offenses. These evidence videos reduce court time for officers and prosecutors and greatly increase the likelihood of successful prosecution. In addition, these systems offer a considerable amount of liability protection for the city, the department and its officers. The current system is seven years old, the manufacturer has closed and approximately half of the current units are out of service and cannot be repaired. The Arbitrator system is fully compatible with the department’s current Panasonic laptops and also allows for cameras in the department’s interview rooms, which must be recorded, to be preserved on that same video server. BUDGET/FISCAL IMPACT: The replacement for this system has been anticipated for some time and was included in last year’s capital improvement process. Originally, funding for this project was split in half between FY2014 and FY2015, with $45,000 budgeted in FY2014. Additionally, a second capital project for FY2014, to replace the department’s Livescan digital fingerprint system, was also budgeted in the amount of $36,813. With the rapid deterioration of the department’s video system, the department is requesting that all of the capital funds budgeted to both projects in FY2014 ($81,813) be used to replace the video system this year, with the remainder being made up by the department’s DUI seizure fund. The department’s digital fingerprint system has not yet failed, and there is sufficient money budgeted in the FY2015 capital budget to replace the system in that year. The total amount of the video system from the state bid is $89,817. A server appropriate to the project has been identified by the City’s IT Department and five quotes were obtained: Vendor Quote Number Quote Amount MNJ Technologies Direct 716621 $6,006.00 CDW-G 1BDFVSX $6,557.74 Tiger Direct J5506177 $6,620.00 CDS Office Technologies 438699 $6,620.00 SHI 7233774 $4,709.00 9 November 4, 2013 City Council Agenda The proposed low bid of $4,709, is provided by SHI. The total results in a project total of $94,526. Funding is provided from two sources: Funding Source Account Number Account Budget Amount Requested Budgeted? Y/N Capt. Fund FY2014 311-7672-421-75-49 $81,813 $81,813 Y DUI Seizure Fund 247 $12,713 $12,713 Y COUNCIL ACTION 1: Approval waiving the bidding process and authorizing the purchase of Replacement Video Recording System in the amount of $89,817. COUNCIL ACTION 2: Approval of Server Purchase from SHI in the amount of $4,709.00. 6. Consideration of Ordinances Approving Recommendations from the Building Review Board. (First Reading and if Desired by the City Council, Final Approval) STAFF CONTACT: Catherine Czerniak, Director of Community Development (810-3504) The following recommendations from the Building Review Board are presented to the City Council for consideration as part of the Omnibus Agenda. 1500 N. Sheridan Road - The Building Review Board recommended approval of modifications to the architectural design and exterior materials for a new residence. There was no public testimony presented to the Board on this petition. (Board vote: 7-0, approved) 1313 E. Westleigh Road - The Building Review Board recommended approval of the demolition of the existing residence and approval a replacement residence. One letter from a neighboring property owner was received on the petition requesting that careful attention be paid to screening the garage doors from views from the street. The Board directed that the landscape plan address this concern. (Board vote: 5 to 2, approved) The dissenting votes were cast by Board members who voiced concern about the demolition of the existing Modernist residence. The Ordinances approving the petitions as recommended by the Building Review Board, with key exhibits attached, are included in the Council packet beginning on page 219. The Ordinances and complete exhibits are available for review in the Community Development Department. COUNCIL ACTION: If determined to be appropriate by the City Council, waive first reading and grant final approval of the Ordinances approving the petitions in accordance with the Building Review Board’s recommendation. 10 November 4, 2013 City Council Agenda 7. Consideration of an Ordinance Approving a Recommendation from the Historic Preservation Commission. (First Reading and if Desired by the City Council, Final Approval) STAFF CONTACT: Catherine Czerniak, Director of Community Development (810-3504) The following recommendation from the Historic Preservation Commission is presented to the City Council for consideration as part of the Omnibus Agenda. 885 Maplewood Road – The Historic Preservation Commission recommended approval of alterations to an existing garden wall, the addition of a covered breezeway between the residence and detached garage, and the addition of a mudroom. A building scale variance is required for this project. The Commission found that the project complies with the design standards and satisfies the criteria for a building scale variance. One letter was received in support of the project. (Board vote: 6-0, approve) The ordinance approving the petition with conditions of approval as recommended by the Historic Preservation Commission, with key exhibits attached, is included in the Council’s packet beginning on page 236. The Ordinance and complete exhibits are available for review in the Community Development Department. COUNCIL ACTION: If determined to be appropriate by the City Council, waive first reading and grant final approval of the Ordinance approving the petition in accordance with the Historic Preservation Commission’s recommendation. 8. Approval of the Vacation of a Sewer Easement on the Old Elm Golf Course. PRESENTED BY: Robert Ells, Superintendent of Engineering, 847-810-3555 PURPOSE AND ACTION REQUESTED: Staff recommends City Council approve the vacation of an unused sewer easement on the Old Elm Golf Course property. BACKGROUND/DISCUSSION: The Old Elm Golf Club in Highland Park hired the James Anderson Company to perform title research and survey work in order to rewrite the Club legal descriptions and update their Commitment for Title insurance. During this research they identified the existence of an unused sewer easement, to the benefit of The City of Lake Forest, on club property. This 50 foot wide easement runs through the property approximately adjacent to the easterly right-of-way line of the East Skokie Drainage Ditch. Said easement was granted by the Old Elm Club and recorded by the Lake Forest City Engineer and Surveyor in 1930; since that time the City has not made any improvements to or installed any sewer infrastructure within this easement. As the Old Elm Golf Club desires to resolve this easement title matter and feel the easement has essentially has been “abandoned by disuse”, they have requested The City of Lake Forest vacate this unused easement on their property. BUDGET/FISCAL IMPACT: At the request of the City, the Old Elm Golf Club has repaired and upgraded their sanitary sewer infrastructure upstream of the City main to include lining of the services, repairing broken pipes inside and outside of the building and 11 November 4, 2013 City Council Agenda adding new access manholes. This work, valued at almost $150,000.00, has drastically reduced the infiltration of ground and surface water into the city sanitary sewer system. Additionally, club management has agreed to trim and remove trees along their property frontage on the south side of Old Elm Road. COUNCIL ACTION: Staff recommends approval of the vacation of this easement. COUNCIL ACTION: Approve the eight (8) Omnibus items as presented. 6. ORDINANCES 1. Consideration of an Ordinance Approving a Recommendation from the Building Review Board. (First Reading and if Desired by the City Council, Final Approval) STAFF CONTACT: Catherine Czerniak, Director of Community Development (810-3504) The following recommendation from the Building Review Board is presented to the City Council for consideration as part of the Regular Agenda due to some continuing neighbor concerns about the project. 1359 Edgewood Road - The Building Review Board recommended approval of the demolition of the existing residence and approval of a replacement residence, garage and landscaping. The Board considered this petition over the course of several months and three meetings. Written and verbal testimony was presented to the Board from three neighboring property owners. Several concerns were raised including concerns about the height and length of the replacement house, the architectural design of the house, the impact on the privacy of neighboring homes and backyards, and drainage. In response to the concerns raised, the Board provided direction over the course of the meetings and reviewed revised plans developed by the petitioner in response to the concerns. The Board recognized that this neighborhood is in transition and that several houses in the area have been demolished and replaced with newer, larger houses. The revised plans presented to the Board reduced the size of the replacement house to 80% of the allowable square footage and shortened the length of the house to reduce impacts to neighboring backyards. The Board also directed that due to the tightness of the properties in this area, the flat topography and the neighbors’ concerns, engineering reviews be completed at the front end of the process. Engineering staff has approved the grading and drainage plan for this project and of particular note, the installation of a curb along the new driveway was required to restrict runoff from the driveway on to the neighboring property and portions of the hardscape on site will be pervious pavers, rather than asphalt. (Board vote: 7-0, approved) The Ordinance approving the demolition and replacement residence as recommended by the Building Review Board, with key exhibits attached, is included in the Council packet beginning on page 245. The Ordinance and complete exhibits is available for review in the Community Development Department. Additional background information from the Building Review’s deliberation is also included in the packet. 12 November 4, 2013 City Council Agenda COUNCIL ACTION: If determined to be appropriate by the City Council, waive first reading and grant final approval of the Ordinances approving the petition in accordance with the Building Review Board’s recommendation. 7. NEW BUSINESS 8. ADDITIONAL ITEMS FOR COUNCIL DISCUSSION 9. ADJOURNMENT Office of the City Manager October 30, 2013 The City of Lake Forest is subject to the requirements of the Americans with Disabilities Act of 1990. Individuals with disabilities who plan to attend this meeting and who require certain accommodations in order to allow them to observe and/or participate in this meeting, or who have questions regarding the accessibility of the meeting or the facilities, are required to contact City Manager Robert R. Kiely, Jr., at (847) 234-2600 promptly to allow the City to make reasonable accommodations for those persons. 13 14 15 16 Comprehensive Annual Financial Report City of Lake Forest, Illinois For the Year Ended April 30, 2013 17 CITY OF LAKE FOREST, ILLINOIS Comprehensive Annual Financial Report Year Ended April 30, 2013 (With Independent Auditor’s Report Thereon) Prepared by: Department of Finance Elizabeth Holleb Finance Director and Diane Hall Assistant Finance Director 18 INTRODUCTORY SECTION 19 i CITY OF LAKE FOREST, ILLINOIS Comprehensive Annual Financial Report Year Ended April 30, 2013 Table of Contents Exhibit Page Introductory Section: Table of Contents i-iv Transmittal Letter v-x Certificate of Achievement for Excellence in Financial Reporting xi List of Principal Officials xii Organizational Chart xiii Financial Section: Independent Auditor’s Report 1 Management’s Discussion and Analysis 3 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position A-1 16 Statement of Activities A-2 17 Fund Financial Statements: Balance Sheet – Governmental Funds A-3 18 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position A-4 19 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds A-5 20 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities A-6 21 Statement of Net Position – Proprietary Funds A-7 22 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds A-8 23 Statement of Cash Flows – Proprietary Funds A-9 24 Statement of Fiduciary Net Position A-10 26 Statement of Changes in Fiduciary Net Position A-11 27 Notes to Financial Statements 28 Required Supplementary Information: Schedules of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual: General Fund B-1 61 Parks and Recreation Fund B-2 62 Illinois Municipal Retirement Fund – Schedules of Funding Progress B-3 63 Police and Firefighters’ Pension Funds: Schedules of Funding Progress B-3 63 Schedules of Employer Contributions B-4 64 Other Post-Employment Benefits B-5 65 Note to Required Supplementary Information 66 20 ii CITY OF LAKE FOREST, ILLINOIS Comprehensive Annual Financial Report Year Ended April 30, 2013 Table of Contents, Continued Exhibit Page Financial Section, Continued: Other Supplementary Information: Financial Schedules: Nonmajor Governmental Funds: Combining Balance Sheet C-1 67 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances C-2 71 Schedules of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual: Asset Forfeiture Fund C-3 75 Foreign Fire Insurance Tax Fund C-4 76 Emergency Telephone Fund C-5 77 Parks and Public Land Fund C-6 78 Motor Fuel Tax Fund C-7 79 General Cemetery Fund C-8 80 Senior Resources Commission Fund C-9 81 Housing Trust Fund C-10 82 Elawa Farm Fund C-11 83 Debt Service Fund C-12 84 West Lake Forest TIF District Construction Fund C-13 85 Capital Improvements Fund C-14 86 Route 60 Bridge Improvements Fund C-15 87 Route 60 Intersection Improvements Fund C-16 88 Route 60 Fitzmorris Improvements Fund C-17 89 2010 Bond Construction Fund C-18 90 Major Enterprise Fund: Schedule of Revenues, Expenses, and Nonoperating Revenues (Expenses) - Budget and Actual (Budgetary Basis) Waterworks and Sewerage Fund D-1 91 Nonmajor Enterprise Fund: Schedule of Revenues, Expenses, and Nonoperating Revenues (Expenses) – Budget and Actual (Budgetary Basis) - Deerpath Golf Course Fund E-1 92 21 iii CITY OF LAKE FOREST, ILLINOIS Comprehensive Annual Financial Report Year Ended April 30, 2013 Table of Contents, Continued Exhibit Page Financial Section, Continued: Individual Major Fund Schedules, Combining Financial Statements and Other Financial Schedules, Continued: Internal Service Funds: Combining Statement of Net Position F-1 93 Combining Statement of Revenues, Expenses, and Changes in Fund Net Position F-2 94 Combining Statement of Cash Flows F-3 95 Schedule of Revenues, Expenses, Nonoperating Revenues and Transfers–Budget and Actual (Budgetary Basis) Fleet Fund F-4 96 Self Insurance Fund F-5 97 Liability Insurance Fund F-6 98 Fiduciary Funds Pension Trust Funds: Combining Statement of Fiduciary Net Position G-1 99 Combining Statement of Changes in Fiduciary Net Position G-2 100 Statement of Changes in Assets and Liabilities – Agency Fund – Special Assessment Fund G-3 101 Schedule of Changes in Fiduciary Net Position – Budget and Actual: Police Pension Fund G-4 102 Firefighters’ Pension Fund G-5 103 Discretely Presented Component Unit – Lake Forest Library: Statement of Net Position and General Fund Balance Sheet H-1 104 Statement of Activities and General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance H-2 105 Debt Service Schedules: Summary of Debt Service Requirements to Maturity I-1 106 Debt Service Requirements to Maturity – General Obligation Bonds I-2 107 Special Service Area 25 Special Tax Bonds – 2003 Series I-3 111 Special Service Area 26 Special Tax Bonds – 2003 Series I-4 112 Special Service Area 29 Special Tax Bonds – 2004 Series I-5 113 General Obligation Bonds – 2008 Series I-6 114 General Obligation Bonds – 2009 Series I-7 115 General Obligation Bonds – 2010 Series A I-8 116 22 iv CITY OF LAKE FOREST, ILLINOIS Comprehensive Annual Financial Report Year Ended April 30, 2013 Table of Contents, Continued Exhibit Page Financial Section, Continued: Individual Major Fund Schedules, Combining Financial Statements and Other Financial Schedules, Continued: Debt Service Schedules, Continued: General Obligation Bonds – 2010 Series B I-9 117 General Obligation Bonds – 2010 Series C I-10 118 General Obligation Bonds – 2011 Series A I-11 119 General Obligation Bonds – 2011 Series B I-12 120 Combining Schedule of Assets, Liabilities, and Fund Balance – Debt Service Fund I-13 121 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance – Debt Service Fund I-14 123 Statistical Section (Unaudited): Table Page Net Position by Component – Last Ten Fiscal Years 1 125 Changes in Net Position – Last Ten Fiscal Years 2 127 Fund Balances of Governmental Funds – Last Ten Fiscal Years 3 131 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years 4 132 Assessed Value and Actual Value of Taxable Property – Last Ten Levy Years 5 134 Property Tax Rates – Direct and Overlapping Governments – Last Ten Levy Years 6 135 Principal Property Taxpayers – Current Year and Nine Years Ago 7 136 Property Tax Levies and Collections – Last Ten Levy Years 8 137 Tax Extensions for City Funds – Last Ten Levy Years 9 138 Sales Tax Base and Number of Principal Payers – Taxable Sales by Category – .5% Sales Tax – Last Ten Calendar Years 10 139 Sales Tax Base and Number of Principal Payers – Taxable Sales by Category – 1% Sales Tax – Last Ten Calendar Years 11 140 Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years 12 141 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 13 142 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years 14 143 Direct and Overlapping Governmental Activities Debt 15 144 Legal Debt Margin Information – Last Ten Fiscal Years 16 145 Pledged Revenue Coverage – Last Ten Fiscal Years 17 146 Demographic and Economic Information – Last Ten Fiscal Years 18 147 Principal Employers – Current Year and Nine Years Ago 19 148 Full-Time Equivalent Employees – Last Ten Fiscal Years 20 149 Operating Indicators – Last Ten Fiscal Years 21 150 Capital Asset Statistics – Last Ten Fiscal Years 22 153 23 October 17, 2013 The Honorable Mayor Schoenheider Members of the City Council Members of the Audit Committee THE CITY OF LAKE FOREST C HARTERED 1861 Residents of the City of Lake Forest, Illinois The Comprehensive Annual Financial Report of the City of Lake Forest (City) for the year ended April 30, 2013, is hereby submitted as mandated by both local ordinances and state statutes. These ordinances and statutes require that the City issue annually a report on its financial position and activity presented in conformance with accounting principles generally accepted in the United States of America (GAAP) and audited in accordance with generally accepted auditing standards by an independent firm of certified public accountants . This report consists of management's representations concerning the finances of the City of Lake Forest. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the City of Lake Forest's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that , to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of Lake Forest utilizes an independent Audit Committee for reviewing the audit process and to report and make recommendations to the City Council. The Audit Committee members are Lake Forest residents having expertise in the area of financial administration and auditing. The City's financial statements have been audited by McGiadrey LLP a firm of licensed certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City of Lake Forest for the fiscal year ended April 30, 2013, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation . The independent auditor concluded, based upon their audit, that there was a reasonable basis for rendering an unmodified opinion that the City's financial statements for the fiscal year ended April 30, 2013, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City 's MD&A is located immediately following the report of the independent auditors . v 800 NORTH FIELD DRIVE· LAKE FOREST. ILLINOI S 60045 ·TEL 847 .234.2600 • WWW.CITYOFLAKEFOREST.COM 24 vi Profile of The City of Lake Forest The City of Lake Forest was incorporated as a city under a charter granted by the Illinois State Legislature in 1861 and amended in 1869. Lake Forest is a residential community of 19,375 people and has a land area of 17.18 square miles. It is situated on Lake Michigan, thirty miles north of downtown Chicago in Lake County. In its American Community Survey, 2007-2011 estimates, the U.S. Census Bureau reported the City had a median family income of $168,611 and median home value of $863,900, significantly higher than comparable figures for Lake County and the State of Illinois. The City adopted the Council-Manager form of government in 1956. Policy making and legislative authority are vested in the City Council, which consists of a Mayor and an eight-member Council. The City Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees and hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and for hiring the heads of the City's departments. The Council members are elected to two-year staggered terms with three Council members elected every two years. Aldermen serve a maximum of three terms. The Mayor is elected to a two-year term and serves a maximum of two terms. The City provides a full range of services, including police protection, fire protection, paramedic service, refuse disposal, commuter parking, compost center, recreation center, senior center, community parks, golf course, street maintenance, forestry, cemetery and a waterworks facility. The financial reporting entity of The City of Lake Forest includes all City funds as well as its component unit, the Lake Forest Library. Component units are legally separate entities for which the primary government is financially accountable. Each year the City of Lake Forest prepares an annual budget document. This plan contains the following sections: the budget message, summary table of anticipated revenues and expenditures for the fiscal year, operating budgets for each department, and the pay plan/personnel policies. The budget message highlights the significant expenditure events that will occur and the objectives to accomplish these events. It justifies the increases in capital expenditures and also lists the goals that are to be achieved during the budget year. While the annual municipal budget represents the City's financial plan for expenditures over the course of the fiscal year, the annual Appropriation Ordinance is the formal legal mechanism by which the City Council authorizes the actual expenditure of funds budgeted in the annual budget. It appropriates specific sums of money by object and purpose of expenditure. In addition, the Appropriation Ordinance provides for a 10% contingency in expenditures in an amount above those actually budgeted. Each separate fund includes an item labeled contingency, with an appropriate sum equivalent to 10% of the total funds budgeted. Even though there is a 10% contingency line item, the City Council and City staff follow the adopted budget as its spending guideline and not the Appropriation Ordinance. This practice has been followed for more than thirty years and has worked very efficiently as a mechanism to address unanticipated items that may arise throughout the fiscal year. Budget-to-actual comparisons are provided for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Fund and the Parks and Recreation Fund, both considered major funds, this comparison is presented beginning on page 61 as required supplementary information. For non-major governmental funds with appropriated annual budgets, this comparison is presented in the non-major governmental fund subsection of this report, which starts on page 67. 25 vii Factors Affecting Financial Condition Local Economy. The City of Lake Forest, like all communities, is continuing to face challenges brought on by the national economy but has developed mechanisms to mitigate the downturn. Statistically:  Unemployment levels in Lake Forest are well below the levels for Lake County and the State of Illinois. For calendar year 2012, the City’s annual average unemployment rate was estimated to be 5.3%, compared to 8.1% for Lake County and 9.8% for the State of Illinois.  The consumer confidence index is closely monitored by economists because consumer spending accounts for 70% of the United States’ economic activity. In August 2013, the index was 81.5, up slightly from 81.0 in July, and up significantly compared to 60.6 in August of 2012. The index remains below 90, the minimum level associated with a healthy economy. An index above 100 signals growth. As revenues declined in recent years due to national economic conditions, the City has proactively reduced operating expenses to ensure a balanced budget and compliance with the City’s fiscal policies. Since personnel costs represent nearly 70% of the operating budget, it has been necessary to achieve costs savings through reduced personnel. In fiscal years (FY) 2009-2014, the City has reduced budgeted full time employees by 31 positions, returning the City’s total employee count below FY1992 levels. In February 2011, the City Council approved an organizational restructuring and Early Retirement Incentive (ERI) program which is offered and regulated by the Illinois Municipal Retirement Fund (IMRF). The State of Illinois passed a pension reform law effective January 1, 2011 which allows new hires without previous IMRF participation to join a Tier 2 pension plan which costs 38% less than the current plan. Twenty-six (26) employees participated in the ERI program, which is projected to generate net savings of $4.5 million over the initial ten year period. The annual savings will be used to help balance the General Fund’s annual budget through FY16 and to provide capital improvement funding. In December 2012, the City Council approved the use of excess fund balance reserves to pay off the ERI liability in its entirety, rather than amortizing over ten years as initially anticipated. This early payoff allowed the City to avoid $1.8 million in interest costs over the amortization period. Approximately half of the City’s General Fund revenues come from property taxes, which continue to be a stable revenue source. The other major funding sources of sales tax, income tax, utility taxes and building permit revenues met or exceeded the FY2013 budget estimates. However, these revenues remain significantly lower than revenues received before the 2008 recession. The economic condition of the State of Illinois continues to be a significant concern although the City has limited reliance on the State for direct funding. The State continues to be behind in making payments to the City for its share of the income tax. As the full extent of the State’s budget crisis has come to light, the City has been vigilant in monitoring any legislation that may be introduced that could have a negative impact on the City’s budget and would vigorously oppose such legislation. In order to assist the business community and enhance sales tax revenues, economic development initiatives are conducted through the Office of the City Manager. The City has enlisted the services of an Economic Development Coordinator who acts as a liaison between the City, Lake Forest/Lake Bluff Chamber of Commerce and the business districts in Lake Forest. The City is committed to attracting desired businesses and to promote the viability of the business districts. More information can be found on the main page of the City’s website under Economic Development. In 2013, the City has completed 26 viii implementation of a new web site to enhance transparency and provide improved communication to residents, businesses and visitors. In September 2013, Lake Forest hosted the BMW Championship, which brought the top 70 professional golfers from around the world to the City as part of the PGA Tour playoffs for the FedEx Cup. The City has actively embraced the event as a unique opportunity to market the community on an international stage. In an effort to proactively address budgetary issues that may arise throughout the year, City staff monitors revenues and expenses on a monthly basis. Monthly financial “flash” reports are provided to the City Council Finance Committee. City staff prepares five-year fund balance reports for all significant funds beginning in November and these are updated as necessary throughout the fiscal year. In addition, the City follows the fiscal policy approved annually by the City Council. The Fiscal Policy is designed to establish guidelines for the fiscal stability of the City and to provide guidelines for the City’s chief executive officer, the City Manager. Effective fiscal policy:  Contributes significantly to the City’s ability to insulate itself from fiscal crisis,  Enhances short-term and long-term financial credit ability by helping to achieve the highest credit and bond ratings possible,  Promotes long-term financial stability by establishing clear and consistent guidelines,  Directs attention to the total financial picture of the City rather than single issue areas,  Promotes the view of linking long-term financial planning with day-to-day operations, and  Provides the Council and the citizens a framework for measuring the fiscal impact of government services against established fiscal parameters and guidelines. Long–Term Financial Planning. The City is funding infrastructure expenditures primarily with the real estate transfer tax that was approved by a referendum. This real estate transfer tax is imposed on residential and commercial real estate transactions. The transfer tax of $4.00 per $1,000 of value is levied on the buyer of the real estate. FY2013 real estate transfer tax revenue totaled $1.2 million. Significant fluctuations occur in this revenue source due to economic conditions, and more specifically the housing market. The City will remain conservative in projecting this revenue source and in spending monies on capital projects. A Public Works Committee which consists of three City Council members was created to oversee capital improvement projects and programs. Annually in September or October, the Public Works Committee and city staff finalize the draft of the Five Year Capital Improvement Program. This draft is discussed at a City Council budget meeting, typically held in November. The five-year fund balance forecasts prepared for major funds of the City each year as part of the budget development process assist the City in identifying budget challenges on the horizon and ensure that a proactive approach is taken to addressing these challenges. Cash Management Policies and Practices. The City follows a policy of investing cash temporarily idle during the year in commercial bank time deposits, in U.S. Treasury bills, in U.S Treasury notes and in Illinois Funds, the State Treasurer’s pool. Additionally, the City's banking agreement requires the bank to invest the balance from the City's consolidated checking account. Interest is paid monthly on these investments and is based on the ninety day Treasury bill rate plus 35 basis points. Only the Cemetery, Firefighters’ Pension and Police Pension Funds are permitted by statute to invest in corporate securities. Investment income includes appreciation and/or reductions in the fair value of investments. Additional information on the City’s investments can be found in Note 1(e) of the financial statements. Risk Management. The City entered into a contractual agreement effective January 1, 1981, for joining the Intergovernmental Risk Management Agency (IRMA) which provides the City with its insurance coverage for liability, property damage and workmen's compensation insurance. IRMA is a self-insurance group consisting of seventy (70) municipalities and special districts pooling their risks through a self- 27 ix insurance administrator. IRMA has been in existence since January 1, 1979 and has an excellent record in offering one of the most comprehensive pooled insurance coverage programs that can be found anywhere for public entities. Prior to January 1, 2000, the City was a member of a self-insured medical and dental pool with six other area organizations. On January 1, 2000, the City established The City of Lake Forest Medical and Dental Plan, a self-insurance plan providing health and dental insurance for all employees of the City. Administration of the Plan is provided by Professional Benefit Administrators, Inc. Pension and Other Post-Employment Benefits. Sworn police and fire personnel receive retirement and disability benefits from the Police Pension Fund and Firefighters’ Pension Fund, respectively. Both of these plans are defined benefit, single-employer plans administered by boards of trustees. The defined benefits and employee contribution levels are governed by Illinois Compiled Statutes and may only be amended by the Illinois General Assembly. Police participants are required to contribute 9.91% of their base salaries and fire participants are required to contribute 9.455% of their base salaries. The City is required to contribute the remaining amounts necessary to finance each plan as determined by an independent actuary. As of April 30, 2013, the most recent actuarial valuation date, the funded ratio for the Police Pension Plan is 57.4% and for the Firefighters’ Pension Plan is 80.9%. All other employees of the City who work over 1,000 hours per year are covered by the Illinois Municipal Retirement Fund (IMRF), a statewide pension plan. Benefit provisions and funding requirements are established by State statutes and may only be changed by the Illinois General Assembly. Employees participating are required to contribute 4.5% of their annual wages and the City is required to contribute the remaining amounts necessary to fund the coverage of its employees in the plan. As of December 31, 2012, the funded ratio for IMRF is 64.8%, excluding the actuarial accrued liability for retirees which is 100% funded. In early 2010, a bill was signed by the Governor with an effective date of January 1, 2011, approving a "two-tier" system, where current employees keep their existing pension plans, but new hires will join a less expensive new system. IMRF was included in the bill but not the Police and Firefighters’ pension plans. By the end of 2010, the Illinois General Assembly approved police and firefighter pension reform legislation effective January 1, 2011. The law does not affect the pensions of currently employed police officers and firefighters - only those hired after January 1, 2011. Although little of the cost savings from both bills will be seen immediately, it does provide the City long-term financial relief. The City has implemented GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. Since the City does not contribute towards the cost of retiree health insurance, the City is reporting only the implicit liability that is created when the retiree (by State Statute) is charged the group rate for the insurance as opposed to the true rate that would have been charged based on risk. Additional information on the City’s pension arrangements and other postemployment benefits may be found in Notes 9 and 10 of the financial statements. Major Initiatives The City is committed to maintaining the quality of life and the preservation of the character and heritage of Lake Forest. The City must continue to adhere to its prudent financial management practices and remain focused on sustaining long-term financial stability. For FY2013, the most significant initiatives were as follows: 28 x  The City completed restructuring of the organization in light of the Early Retirement Incentive (ERI) program. As mentioned previously, a number of positions have been eliminated, resulting in the restructuring of City operations and reduction of vehicles and equipment inventories. In December 2012, the City Council approved the use of excess fund balance reserves to pay off the ERI liability in lieu of the 10-year amortization originally contemplated to save $1.8 million in interest costs.  The City participated in studies with other communities in an effort to identify potential opportunities for efficiencies through shared services. Areas currently being explored include fire/paramedic services, central dispatching and information technology.  The City closed out the very successful West Lake Forest Tax Increment Financing (TIF) District effective December 31, 2012. A surplus of nearly $2.4 million was declared, which was distributed to impacted taxing districts, and approximately $50 million in assessed valuation was returned to the tax rolls benefiting all taxing bodies in the district.  Planning and preparation was a central part of City activities in FY13. The City pursued a TIF evaluation on the Laurel Avenue property, the site of the former Municipal Services facility, completed a strategic planning initiative, worked on redesign of the City’s web site (launched summer 2013), and assisted the Western Golf Association with planning for the BMW Championship golf tournament.  Capital improvements in Fiscal Year 2013 included street improvements ($1.7 million), Settlers Square streetscape improvements ($290,000), replacement of roofs at Telegraph Road train and fire stations ($379,000), Tanglewood Court water main ($199,000), and Basswood-Onwentsia water main ($117,000). Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to The City of Lake Forest for its comprehensive annual financial report for the fiscal year ended April 30, 2012. This was the thirty-fourth (34th) consecutive year that The City of Lake Forest has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. We would like to express our appreciation to all members of the Finance Department who assisted and contributed to the preparation of this report. We would also like to thank the Mayor, members of the City Council and the Audit Committee for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, Robert R. Kiely, Jr. Elizabeth A. Holleb City Manager Finance Director 29 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Lake Forest Illinois For its Comprehensive Annual Financial Report for the Fiscal Year Ended April 30,2012 Executive Director/CEO xi 30 xii CITY OF LAKE FOREST, ILLINOIS List of Principal Officials Year Ended April 30, 2013 LEGISLATIVE City Council Donald P. Schoenheider, Mayor George A. Pandaleon Stanford Tack Kent E. Novit John Reisenberg Catherine A. Waldeck Robert T. Palmer David Moore Michael R. Adelman AUDIT COMMITTEE Michelle Moreno, Chairman Lucinda Baier Andrew Marwede Amy Krebs Andrew Logan George A. Pandaleon, Alderman (ex-officio) Donald P. Schoenheider, Mayor (ex-officio) EXECUTIVE Robert R. Kiely, Jr., City Manager DEPARTMENT OF FINANCE Elizabeth Holleb, Director of Finance Diane Hall, Assistant Finance Director 31 xiii Mayor and City CouncilCROYACOMMUNITY DEVELOPMENT FINANCE/IT FIRE HUMAN RESOURCES PARKS/RECREATION POLICE PUBLIC WORKS SENIOR CENTERVoters and Citizens of The City of Lake Forest Appointed Boards/ Commissions/ CommitteesOffice of the City ManagerAudit CommitteeBoard of Fire and Police CommissionersBoard of Trustees‐Police Pension Fund Board of Trustees‐Firefighters' Pension FundBuilding Review BoardCemetery CommissionConstruction Codes CommissionCROYA BoardHistoric Preservation CommissionHousing Trust Fund BoardLegal CommitteeLibrary BoardParks and Recreation BoardPlan CommissionSenior Resources CommissionZoning Board of Appeals32 FINANCIAL SECTION 33 Independent Auditor’s Report 34 1 Independent Auditor’s Report Honorable Mayor, City Council, and City Manager City of Lake Forest, Illinois Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Lake Forest, Illinois, as of and for the year ended April 30, 2013, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Lake Forest, Illinois, as of April 30, 2013, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 35 2 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis (pages 3 - 15), budgetary comparison information (pages 61 - 62), and pension and OPEB information (pages 63 - 65) be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village’s basic financial statements. The Other Supplementary Information (pages 67 – 123), the Introductory Section and the Statistical Section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Other Supplementary Information, consisting of combining and individual fund statements and schedules, discretely presented component unit statements and debt service schedules, is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Other Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. The Introductory Section and Statistical Section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Schaumburg, Illinois October 17, 2013 36 CITY OF LAKE FOREST, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS APRIL 30, 2013 3 The City of Lake Forest’s (the City) management’s discussion and analysis is designed to (1) assist the reader in focusing on significant financial issues, (2) provide an overview of the City’s financial activity, (3) identify changes in the City’s financial position (its ability to address the next and subsequent year’s challenges), (4) identify any material deviations from the financial plan (the approved budget), and (5) identify individual fund issues or concerns. Since the Management’s Discussion and Analysis (MD&A) is designed to focus on the current year’s activities, resulting changes and currently known facts, please read it in conjunction with the Transmittal Letter (beginning on page v) and the City’s financial statements (beginning on page 16). Financial Highlights  The City’s net position decreased by $1.9 million during the fiscal year ending April 30, 2013 (FY13). The governmental net position decreased by $2.2 million and the business-type activities net position increased by $0.3 million.  The governmental activities revenue increased by $1.2 million or 2.5% due primarily to increased sales tax revenue. The expenses increased by $4.3 million or 9.1% due to a $2.6 million surplus distribution related to the termination of the West Lake Forest Tax Increment Financing (TIF) district and $2.7 million paid from fund balance reserves to pay off the Early Retirement Incentive (ERI) program liability and avoid interest costs in future years. The transfers increased by $40,000.  The business-type activities revenue increased by $1.1 million and expenses increased by $.3 million due to weather conditions impacting water sales and water production. The transfers increased by $40,000.  The total cost of all City programs increased from $56.8 million in FY12 to $61.4 million in FY13 – an increase of $4.6 million driven by $5.3 million in one-time payments as noted above. USING THE FINANCIAL SECTION OF THE COMPREHENSIVE ANNUAL REPORT The financial statement’s focus is on both the City as a whole (government-wide) and on the major individual funds. Both perspectives (government-wide and major fund) allow the user to address relevant questions, broaden a basis for comparison (year to year or government to government) and enhance the City’s accountability. Government-Wide Financial Statements The government-wide financial statements (see pages 16-17) are designed to be corporate-like in that all governmental and business-type activities are consolidated into columns which add to a total for the Primary Government. The focus of the Statement of Net Position (the Unrestricted Net Position) is designed to be similar to bottom line results for the City and its governmental and business-type activities. This statement combines and consolidates governmental fund’s current financial resources (short-term spendable resources) with capital assets and long term obligations using the accrual basis of accounting and economic resources measurement focus. The Statement of Activities (see page 17) is focused on both the gross and net cost of various activities (including governmental and business-type), which are supported by the government’s general taxes and other resources. This is intended to summarize and simplify the user’s analysis of the cost of various governmental services and/or subsidy to various business-type activities. The Governmental Activities reflect the City’s basic services, including highways and streets, sanitation, culture and recreation, public safety and general government. Property taxes, sales tax, income taxes and local utility taxes finance the majority of these services. The Business-type Activities reflect private sector type operations (Waterworks and Sewerage, Golf) where the fee for service is intended to cover all or most of the costs of operation, including depreciation. 37 CITY OF LAKE FOREST, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS APRIL 30, 2013 4 (Continued) Fund Financial Statements Traditional users of governmental financial statements will find the Fund Financial Statements presentation more familiar. The focus is on Major Funds, rather than fund types. The Governmental Major Funds (see pages 18 and 20) presentation is presented on a sources and uses of liquid resources basis. This is the manner in which the financial plan (the budget) is typically developed. The flow and availability of liquid resources is a clear and appropriate focus of any analysis of a government. Funds are established for various purposes and the Fund Financial Statement allows the demonstration of sources and uses and/or budgeting compliance associated therewith. The Fund Financial Statements also allow the government to address its Fiduciary Funds (Police Pension, Firefighters’ Pension, Cemetery Trust, and Special Assessment Funds). While these Funds represent trust responsibilities of the government, these assets are restricted in purpose and do not represent discretionary assets of the government. Therefore, these assets are not presented as part of the Government-Wide Financial Statements. While the Business-type Activities column on the Business-type Fund Financial Statements (see pages 22 - 23) essentially is the same as the Business-type column on the Government-Wide Financial Statement, the Governmental Major Funds Total column requires a reconciliation because of the different measurement focus (current financial resources versus total economic resources) which is reflected on the page following each statement (see pages 19 and 21). The flow of current financial resources will reflect debt proceeds and interfund transfers as other financing sources as well as capital expenditures and debt principal payments as expenditures. The reconciliation will eliminate these transactions and incorporate the capital assets and long-term obligations (bonds and others) into the Governmental Activities column (in the Government-wide statements). Infrastructure Assets Historically, a government’s largest group of assets (infrastructure – roads, bridges, storm sewers, etc.) were not reported nor depreciated in governmental financial statements. Generally accepted accounting principles now require that these assets be valued and reported within the Governmental column of the government-wide Statements. Additionally, the government must elect to either (1) depreciate these assets over their estimated useful life or (2) develop a system of asset management designed to maintain the service delivery potential to near perpetuity. If the government develops the asset management system (the modified approach) which periodically (at least every third year) by category measures and demonstrates its maintenance of locally established levels of service standards, the government may record its cost of maintenance in lieu of depreciation. The City has chosen to depreciate assets over their useful life. If a road project is considered maintenance – a recurring cost that does not extend the road’s original useful life or expand its capacity – the cost of the project will be expensed. An “overlay” of a road will be considered maintenance whereas a “rebuild” of a road will be capitalized. 38 CITY OF LAKE FOREST, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS APRIL 30, 2013 5 (Continued) GOVERNMENT-WIDE STATEMENT Statement of Net Position The City’s combined net position decreased by $1.9 million for FY13 – from $272.6 million to $270.7 million. The analysis following will look at net position and net expenses of governmental and business- type activities separately. The total net position for the governmental activities decreased by $2.2 million from $226.9 million to $224.7 million. The business-type activities net position increased by $0.3 million from $45.7 million to $46.0 million. Table 1 reflects the condensed Statement of Net Position compared to FY12. Table 2 will focus on the changes in net position of the governmental and business-type activities. 2013 2012 2013 2012 2013 2012 Current and Other Assets $69.0 $69.4 $10.9 $9.9 $79.9 $79.3 Capital Assets 224.6 229.3 56.5 58.8 281.1 288.1 Total Assets 293.6 298.7 67.4 68.7 361.0 367.4 Long- Term Liabilities 39.1 40.4 20.6 22.2 59.7 62.6 Other Liabilities 29.8 31.4 0.8 0.9 30.6 32.3 Total Liabilities 68.9 71.8 21.4 23.1 90.3 94.9 Net Position: Net Investment in Capital Assets 187.5 190.8 36.1 36.8 223.6 227.6 Restricted 16.1 16.6 0.0 0.0 16.1 16.6 Unrestricted 21.1 19.5 9.9 8.9 31.0 28.4 Total Net Position $224.7 $226.9 $46.0 $45.7 $270.7 $272.6 Activities Activities Government Table 1 Governmental Business-Type Total Primary Statement of Net Position As of April 30 2013 and 2012 (in millions) For more detailed information see the Statement of Net Position (page 16). Normal Impacts There are six basic (normal) transactions that will affect the comparability of the Statement of Net Position summary presentation. Net Results of Activities will impact (increase/decrease) current assets and unrestricted net position. Borrowing for Capital will increase current assets and long-term debt. Spending Borrowed Proceeds on New Capital will reduce current assets and increase capital assets. There is a second impact, an increase in invested in capital assets and an increase in related net debt which will not change the invested in capital assets, net of debt. Spending of Non-borrowed Current Assets on New Capital will (a) reduce current assets and increase capital assets and (b) will reduce unrestricted net position and increase invested in capital assets, net of debt. 39 CITY OF LAKE FOREST, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS APRIL 30, 2013 6 (Continued) Principal Payment on Debt will (a) reduce current assets and reduce long-term debt; and (b) reduce unrestricted net position and increase invested in capital assets, net of debt. Reduction of Capital Assets through Depreciation will reduce capital assets and invested in capital assets, net of debt. Current Year Impacts The City’s $1.9 million decrease in combined net position (which is the City’s bottom line) was the result of the governmental activities net position decreasing by $2.2 million and the business-type activities net position increasing by $0.3 million. The governmental activities total assets decreased by $5.1 million and the governmental activities total liabilities decreased by $2.9 million. The reduction in total assets occurred primarily due to depreciation on capital assets significantly exceeding additions. The reduction in liabilities was due to a decrease in long-term liabilities resulting from scheduled maturities of debt obligations and no new obligations incurred during the current fiscal year, as well as a decrease in deferred revenue for property taxes. Net investment in capital assets decreased due to depreciation exceeding additions and unrestricted net position increased by $1.6 million. The net position of business-type activities increased by $0.3 million, from $45.7 million to $46.0 million. The current assets of the business-type activities increased by $1.0 million and net capital assets decreased by $2.3 million due to depreciation exceeding additions. Long-term liabilities decreased by $1.6 million due to scheduled maturities of debt obligations. The unrestricted net position increased from $8.9 million to $9.9 million. The majority of the unrestricted net position can be used by the City to finance water and sewer operations. The City has a policy of maintaining 33% of revenue plus one year’s debt service as a reserve in its water fund. The annual operating cost for this program is approximately $7.6 million per year and interest expense on bonds is $.7 million. Changes in Net Position The City’s combined change in net position was a decrease of $1.9 million from FY12. The City’s total revenues increased by $2.3 million. The City’s cost of all programs increased by $4.6 million, but this was attributable to the termination of the TIF district and the early payoff of the ERI liability from reserves. The chart on the following page compares the revenue and expenses for the current and previous fiscal year. 40 CITY OF LAKE FOREST, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS APRIL 30, 2013 7 (Continued) 2013 2012 2013 2012 2013 2012 REVENUE Program Revenue Charges for Services $10.9 $10.8 $9.9 $8.7 $20.8 $19.5 Grants and Contributions Operating 1.8 1.4 1.8 1.4 Capital 0.0 0.4 0.0 0.4 General Revenue Property Taxes 25.1 25.4 25.1 25.4 Other Taxes 10.7 10.1 10.7 10.1 Other 1.1 0.3 0.1 1.1 0.4 Total Revenue 49.6 48.4 9.9 8.8 59.5 57.2 EXPENSES Governmental Activities General Government 16.2 12.1 16.2 12.1 Highways and Streets 7.5 8.3 7.5 8.3 Sanitation 2.5 2.6 2.5 2.6 Culture and Recreation 10.4 9.4 10.4 9.4 Public Safety 13.7 13.6 13.7 13.6 Interest 1.4 1.4 1.4 1.4 Business-Type Activities Water and Sewer 8.3 8.0 8.3 8.0 Golf 1.4 1.4 1.4 1.4 Total Expenses 51.7 47.4 9.7 9.4 61.4 56.8 Excess before Transfers (2.1) 1.0 0.2 (0.6) (1.9) 0.4 Transfers In (out) (0.1) 0.1 0.0 0.0 Change in Net Position (2.2) 1.0 0.3 (0.6) (1.9) 0.4 Net Position - Beginning 226.9 225.9 45.7 46.2 272.6 272.1 Net Position - Ending $224.7 $226.9 $46.0 $45.6 $270.7 $272.5 Table 2 Governmental Business-Type Total Primary Changes in Net Position Government For the Fiscal Year Ended April 30, 2013 and 2012 (in millions) Activities Activities 41 CITY OF LAKE FOREST, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS APRIL 30, 2013 8 (Continued) 42 CITY OF LAKE FOREST, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS APRIL 30, 2013 9 43 CITY OF LAKE FOREST, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS APRIL 30, 2013 10 Normal Impacts There are eight basic impacts on revenues and expenses as reflected below. Revenues Economic Condition can reflect a declining, stable or growing economic environment and has a substantial impact on state income, sales and utility tax revenue as well as public spending habits for building permits, elective user fees and volumes of consumption. Increase/Decrease in City approved rates – while certain tax rates are set by statute, the City Council has authority to impose and periodically increase/decrease rates (water, sewer, building fees, etc.). Changing Patterns in Intergovernmental and Grant Revenue (both recurring and non-recurring) – certain recurring revenues (state shared revenues, etc.) may experience significant changes periodically while non-recurring (or one-time) grants are less predictable and often distorting in their impact on year to year comparisons. Market Impacts on Investment income – investment income on the City’s investment portfolio may fluctuate based on market conditions. Expenses Introduction of New Programs – within the functional expense categories (Public Safety, Highways and Streets, General Government, etc.), individual programs may be added or deleted to meet changing community needs. Increase/Decrease in Authorized Personnel – changes in service demand may cause the City Council to increase/decrease authorized staffing. Staffing costs (salary and related benefits) represent nearly 70% of the City’s general fund operating costs. Salary Increases (annual adjustments and merit) – the ability to attract and retain human and intellectual resources requires the City to strive to approach a competitive salary range position in the marketplace. Inflation – while overall inflation appears to be reasonably modest, the City is a major consumer of certain commodities such as supplies, fuels and parts. Some functions may experience unusual commodity specific increases. Current Year Impacts Governmental Activities Revenue For the fiscal year ended April 30, 2013, revenues from governmental activities totaled $49.6 million, up $1.2 million compared to FY12. The single greatest factor resulting in the change between FY12 and FY13 was a $.6 million increase in sales tax revenues. A portion of this related to a one-time adjustment associated with a sales tax sharing agreement with Mettawa for the Lake Forest Oasis. Property tax revenue continues to be the City’s single largest revenue source, contributing $25.1 million (50.6%) of governmental activities revenue. This is a slight decrease of $0.3 million or 1.2% compared to the prior year. Property tax revenues combined with sales tax, the local utility tax, shared state income tax and real estate transfer tax revenues total $35.8 million and represent 72.2% of the total governmental activities revenue. 44 CITY OF LAKE FOREST, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS APRIL 30, 2013 11 The real estate transfer tax became effective July 5, 2006 with a 58% voter approval via referendum. The tax is imposed upon buyers of any residential or commercial real estate at a rate of $4.00 per $1,000 of value. The revenue is used strictly to improve the City’s infrastructure. The City’s 2012 equalized assessed valuation decreased 5.3% to $2,378,047,139. Although the City became a home rule municipality in November 2004, the City still follows the Illinois Property Tax Extension Limitation Laws (PTELL), otherwise known as the tax cap. Investment income increased by $0.2 million ($0.3 million to $0.5 million). The City’s strategy for investing did not change. Expenses For the fiscal year ended April 30, 2013, expenses for governmental activities totaled $51.7 million, an increase of $4.3 million or 9.1%. This increase is due to two one-time events. First, the City terminated the West Lake Forest TIF district resulting in a $2.6 million surplus distribution to impacted taxing districts. Second, the City elected to use fund balance reserves to pay off its liability associated with the Early Retirement Incentive (ERI) program, thereby avoiding future interest costs. Overall, the City has experienced a reduction in personnel expenses as a result of reducing headcount. The ERI program has allowed for a reduction in the number of personnel, as well as the replacement of long-tenured personnel with new employees that have lower salaries and lower cost pensions due to the new two-tier pension system. The City’s highways and streets expense category decreased by $.8 million from $8.3 to $7.5 million which is a decrease of 9.6%. This decrease is attributable to reduced capital maintenance compared to the prior year. The City’s culture and recreation function increased by $1.0 million or 10.6%, from $9.4 million to $10.4 million, due primarily to the Parks portion of the ERI liability payoff from reserves. The City’s public safety function increased by .7%, from $13.6 to $13.7 million, due to personnel cost increases. With high demand for skilled employees in both the public and private sectors in this region, it is important that the City provide competitive compensation levels for our employees. The FY13 expenses included funding for the City’s performance based employee compensation package plus a 2.0% general salary adjustment. Business-type Activities Revenue Total revenue for the business-type activities increased by $1.1 million due to weather conditions favorably impacting water sales. Expenses The City’s business-type activity expenses increased by $.3 million or 3.2%. The increase was primarily in the water fund due to increased water production. 45 CITY OF LAKE FOREST, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS APRIL 30, 2013 12 FINANCIAL ANALYSIS OF THE CITY’S FUNDS Governmental Funds At April 30, 2013, the governmental funds (as presented on the balance sheet on page 18) reported a combined fund balance of $32.0 million which is a 1.6% increase from the beginning of the year ($31.5 million). Of the total fund balance of $32.0 million, $29.8 million is available for continuing City services and capital projects. While nonspendable and assigned fund balance amounts are essentially unchanged from the prior year, restricted fund balance has decreased $.6 million. The unassigned fund balance of the General Fund at April 30, 2013 is $11.7 million, which is a $1.1 million (10.4%) increase over the prior year. Major Governmental Funds The General Fund is the City’s primary operating fund and the largest source of day-to-day service delivery. The total Fund Balance of the General Fund increased by $1.0 million or 7.5% from FY12 ($13.7 million to $14.7 million). The General Fund revenues increased by $1.4 million (4.8%) and the expenditures increased by $1.7 million due to the early payoff of the ERI liability. Excluding this one-time payment, expenditures decreased by $.2 million compared to the prior year. The excess of revenues over expenditures for FY13 of $3.4 million compared favorably to the $3.7 million in FY12, especially considering the FY13 ERI payment of $1.9 million. The other financing sources (uses) increased by $0.2 million. Primary revenue fluctuations between FY12 and FY13 were increases in sales taxes and a one-time receipt of TIF surplus revenue. Although the City became a home rule unit in November 2004, the City still follows the Illinois Property Tax Extension Limitation Laws (PTELL), otherwise known as the tax cap. The 2011 levy extension allowed for a 1.5% CPI factor as well as new equalized assessed valuation growth. The increased sales tax revenue came in part from a one-time adjustment of sales taxes attributable to the Lake Forest Oasis, which are shared by intergovernmental agreement with the Village of Mettawa and had been under-reported to the City. As discussed previously, General Fund expenditures saw little change between FY12 and FY13 with the exception of the ERI liability payoff. Original Final General Fund Budget Budget Actual Revenues: Taxes $25.0 $25.0 $25.5 Other 5.9 5.9 6.5 Total 30.9 30.9 32.0 Expenditures and Transfers: Expenditures 31.4 31.4 28.6 Transfers (Net)2.5 2.5 2.4 Total 33.9 33.9 31.0 Change in Fund Balance ($3.0)($3.0)$1.0 General Fund Budgetary Highlights (in millions) Table 3 46 CITY OF LAKE FOREST, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS APRIL 30, 2013 13 Actual General Fund revenues were higher than the original budgeted revenues by $1.1 million during FY13. This increase is mainly due to increased sales tax revenues and a one-time receipt of TIF surplus. Actual General Fund expenditures were lower than the original and final budget by $2.8 million as it is the City’s policy to add 10%, which is $3.0 million, of contingency funding to the budget appropriation. The contingency amount is only for emergency use and was not used in FY13, with the exception of a small amount used to provide for the balance of the ERI liability payment that could not be absorbed by budget savings in other line items. More information can be found on the schedule of revenues, expenditures and changes in fund balance – budget and actual on page 61. The Parks and Recreation Fund accounts for the parks and recreation programs. Services include forestry and parks maintenance operations, a fitness center, dance academy, and a variety of other indoor and outdoor programs. The Fund Balance of the Parks and Recreation Fund decreased by $0.5 million from $3.0 million to $2.5 million. The Parks and Recreation Fund revenues increased by $.1 million (1.1%) while expenditures increased by $.8 million (10.5%). The increase in expenditures was attributable solely to the Parks portion of the early payoff of the ERI liability. The excess of revenues over expenditures decreased from $29,000 to $(729,000) attributable to the $.8 million ERI payment. CAPITAL ASSETS 2013 2012 2013 2012 2013 2012 Land and Improvements $45.5 $45.5 $0.5 $0.5 $46.0 $46.0 Infrastructure - Land 66.7 66.7 66.7 66.7 Construction in Progress 0.0 0.2 0.0 0.2 Infrastructure 64.7 67.8 64.7 67.8 Buildings 22.3 23.0 16.4 17.4 38.7 40.4 Improvements 20.8 21.5 23.1 23.8 43.9 45.3 Machinery and Equipment 4.6 4.6 2.0 2.0 6.6 6.6 Sanitary Sewers 0.0 0.0 14.5 15.1 14.5 15.1 Total $224.6 $229.3 $56.5 $58.8 $281.1 $288.1 Table 4 Governmental Business-Type Total Primary Activities Activities Government Capital Assets at Year End Net of Depreciation (in millions) At the end of FY13, the City had a combined total of $281.1 million invested in a broad range of capital assets. This amount represents a net decrease (including additions and deductions) of $7.0 million. The net decrease is attributable to a $4.7 million decrease in governmental activities and a $2.3 million decrease in the business-type activities. The $4.7 million decrease in the governmental activities was primarily due to $6.3 million of depreciation offset by $1.8 million of capital asset additions. The $2.3 million decrease in business-type activities was due primarily to $2.8 million of depreciation offset by $.5 million in water main improvements. 47 CITY OF LAKE FOREST, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS APRIL 30, 2013 14 The following reconciliation summarizes the changes in Capital Assets which are presented in detail on pages 44-46 of the Notes. Governmental Business-Type Activities Activities Total Beginning Balance $229.3 $58.8 $288.1 Additions Depreciable 1.8 0.5 2.3 Non-Depreciable 0.0 0.0 Construction in Progress 0.0 0.0 Retirements Depreciable (0.4) (0.4) Non-Depreciable (0.2) (0.2) Construction in Progress Depreciation (6.3) (2.8) (9.1) Retirements 0.4 0.4 Ending Balance $224.6 $56.5 $281.1 Table 5 Change in Capital Assets (in millions) Debt Outstanding The City had $58.3 million of general obligation bonds outstanding at April 30, 2013. Of this amount $29.8 million were payable from property taxes and the remainder were self-supporting. The City’s per capita debt ratio for all direct and overlapping debt with other governmental units was $6,961 and $5,975 if self-supporting debt is excluded. The City operated as a home rule community for FY13. The City was granted home rule status via a referendum held on November 2, 2004. Under home rule authority, the City will not have a legal debt limit. For more detailed information on long-term debt activity, see pages 47-49. 48 CITY OF LAKE FOREST, ILLINOIS MANAGEMENT’S DISCUSSION AND ANALYSIS APRIL 30, 2013 15 Economic Factors Unemployment levels in Lake Forest are well below the levels for Lake County and the State of Illinois. For calendar year 2012, the City’s annual average unemployment rate was estimated to be 5.3%, compared to 8.1% for Lake County and 9.8% for the State of Illinois. The City refunded $9.7 million of outstanding general obligation bonds in September 2013. As part of the transaction, the City was successful in retaining its Aaa bond rating from Moody’s Investors Service. CONTACTING THE CITY’S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, customers, investors and creditors with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives. Questions concerning this report or requests for additional financial information should be directed to Elizabeth Holleb, Finance Director, City of Lake Forest, 800 N. Field Drive, Lake Forest, IL 60045. 49 BASIC FINANCIAL STATEMENTS 50 16 CITY OF LAKE FOREST, ILLINOIS Exhibit A-1 Statement of Net Position April 30, 2013 Component Primary Government unit Governmental Business-type Lake Forest Activities Activities Total Library Assets Cash and cash equivalents 33,654,290 $ 9,373,888 $ 43,028,178 $ 1,278,923 $ Investments 3,549,244 - 3,549,244 - Receivables (net): Property taxes 23,473,050 - 23,473,050 3,677,334 Other taxes 354,314 - 354,314 6,310 Accounts 895,021 1,206,681 2,101,702 - Loans 2,020,763 - 2,020,763 - Other 468,726 242 468,968 - Due from other governments 1,869,073 - 1,869,073 - Internal balances (61,448) 61,448 - - Inventories 341,765 106,895 448,660 - Prepaids 616,665 72,305 688,970 - Deferred charges – bond issuance costs 180,420 79,108 259,528 - Net pension asset 1,598,911 - 1,598,911 - Capital assets: Not being depreciated 112,238,404 459,369 112,697,773 219,000 Being depreciated, net 112,390,263 56,020,022 168,410,285 3,322,484 Total assets 293,589,461 67,379,958 360,969,419 8,504,051 Liabilities Accounts payable 1,207,340 188,192 1,395,532 22,926 Accrued liabilities 1,283,589 52,435 1,336,024 46,626 Accrued interest payable 498,524 190,713 689,237 - Deposits 819,155 - 819,155 - Unearned revenue - property taxes 23,473,050 - 23,473,050 3,677,334 Unearned revenue - other 2,508,608 389,954 2,898,562 - Long-term obligations: Due within one year 1,500,949 1,820,000 3,320,949 41,433 Due in more than one year 37,606,798 18,780,056 56,386,854 242,062 Total liabilities 68,898,013 21,421,350 90,319,363 4,030,381 Net Position Net investment in capital assets 187,500,531 36,077,752 223,578,283 3,452,764 Restricted for: Culture and recreation 3,156,476 - 3,156,476 - Highways and streets 802,946 - 802,946 - Public safety 493,184 - 493,184 - Cemetery purposes 4,101,381 - 4,101,381 - Affordable housing 765,794 - 765,794 - Capital projects 3,878,148 - 3,878,148 - Debt service 1,908,750 - 1,908,750 - Parking 957,420 - 957,420 - Unrestricted 21,126,818 9,880,856 31,007,674 1,020,906 Total net position 224,691,448 $ 45,958,608 $ 270,650,056 $ 4,473,670 $ See accompanying notes to financial statements. 51 17 CITY OF LAKE FOREST, ILLINOISExhibit A-2Statement of ActivitiesFor the Year Ended April 30, 2013Program Revenues Net (Expense) Revenue and Changes in Net PositionOperating Capital Primary Government Component UnitCharges for Grants and Grants and Governmental Business-type Lake ForestExpenses Services Contributions Contributions Activities Activities Total LibraryFunctions/ProgramPrimary government:Governmental activities:General government 16,176,326 $ 4,838,151 $ 718,710 $ -$ (10,619,465) $ -$ (10,619,465) $ Highways and streets 7,536,444 753,487 686,249 - (6,096,708) - (6,096,708) Sanitation 2,512,559 58,564 - - (2,453,995) - (2,453,995) Culture and recreation 10,352,252 3,342,913 346,667 25,000 (6,637,672) - (6,637,672) Public safety 13,748,855 1,861,619 26,108 - (11,861,128) - (11,861,128) Interest on long-term debt 1,362,715 - - - (1,362,715) - (1,362,715) Total governmental activities 51,689,151 10,854,734 1,777,734 25,000 (39,031,683) - (39,031,683) Business-type activities:Waterworks and sewerage 8,287,297 8,598,079 - - - 310,782 310,782 Golf 1,459,394 1,320,455 - - - (138,939) (138,939) Total business-type activities 9,746,691 9,918,534 - - - 171,843 171,843 Total primary government 61,435,842 $ 20,773,268 $ 1,777,734 $ 25,000 $ (39,031,683) 171,843 (38,859,840) Component UnitLake Forest Library3,398,628 $ 62,561 $ 44,968 $ -$ (3,291,099) $ General revenues and transfers:General revenuesProperty taxes25,051,411 - 25,051,411 3,528,469 Replacement taxes130,549 - 130,549 31,348 Sales tax3,183,479 - 3,183,479 - Income tax2,131,711 - 2,131,711 - Utility tax3,736,586 - 3,736,586 - Real estate transfer tax1,209,113 - 1,209,113 - Other taxes362,869 - 362,869 - Investment income491,196 37,853 529,049 9,790 Other 573,705 - 573,705 65,606 Transfers(77,100) 77,100 - - Total general revenues and transfers36,793,519 114,953 36,908,472 3,635,213 Change in net position(2,238,164) 286,796 (1,951,368) 344,114 Net position – beginning of year226,929,612 45,671,812 272,601,424 4,129,556 Net position – end of year224,691,448 $ 45,958,608 $ 270,650,056 $ 4,473,670 $ See accompanying notes to financial statements. 52 18 CITY OF LAKE FOREST, ILLINOIS Exhibit A-3 Balance Sheet Governmental Funds April 30, 2013 Parks and Nonmajor Total General Recreation Governmental Governmental Assets Fund Fund Funds Funds Cash and cash equivalents 12,464,462 $ 3,440,606 $ 11,116,610 $ 27,021,678 $ Investments - - 3,549,244 3,549,244 Receivables (net of allowance for uncollectibles): Property taxes 16,491,864 5,064,221 1,916,965 23,473,050 Other taxes 354,314 - - 354,314 Accounts 530,494 62,984 301,543 895,021 Loans 2,020,763 - - 2,020,763 Other 65,890 - 303,463 369,353 Due from other governments 1,827,541 8,210 33,322 1,869,073 Advances to other funds 667,282 - - 667,282 Due from fiduciary funds - - 84,677 84,677 Inventory 44,339 - - 44,339 Prepaids 43,065 - 43,333 86,398 Total assets 34,510,014 $ 8,576,021 $ 17,349,157 $ 60,435,192 $ Liabilities and Fund Balances Liabilities: Accounts payable 520,902 $ 220,585 $ 140,852 $ 882,339 $ Accrued liabilities 619,434 109,830 13,421 742,685 Due to other funds - - 8,408 8,408 Deposits 806,905 2,250 10,000 819,155 Deferred revenue: Property taxes 16,491,864 5,064,221 1,916,965 23,473,050 Other 1,317,317 707,667 483,624 2,508,608 Total liabilities 19,756,422 6,104,553 2,573,270 28,434,245 Fund balances: Nonspendable 2,775,449 - 43,333 2,818,782 Restricted 957,420 2,471,468 13,133,735 16,562,623 Assigned - - 1,598,819 1,598,819 Unassigned 11,020,723 - - 11,020,723 Total fund balances 14,753,592 2,471,468 14,775,887 32,000,947 Total liabilities and fund balances 34,510,014 $ 8,576,021 $ 17,349,157 $ 60,435,192 $ See accompanying notes to financial statements. 53 19 Exhibit A-4 CITY OF LAKE FOREST, ILLINOIS Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position April 30, 2013 Total fund balances – governmental funds 32,000,947 $ Amounts reported for governmental activities in the statement of net assets are different because: Bond costs of issuance are capitalized at the government wide level and amortized over the life of the related bonds. 180,420 Net pension asset recorded in governmental activities is not a financial resource and therefore is not reported in the funds. 1,598,911 Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Those assets consist of: Land and land improvements 45,497,634 $ Land-infrastructure 66,740,770 Infrastructure, net of $116,355,292 in accumulated depreciation 64,719,009 Buildings, net of $9,809,005 in accumulated depreciation 22,328,752 Improvements, net of $9,574,452 in accumulated depreciation 20,776,237 Machinery and equipment, net of $10,740,811 in accumulated depreciation 4,533,329 Total capital assets, net 224,595,731 Long-term liabilities applicable to the City’s governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. All liabilities – both current and long-term – are reported in the statement of net position. Balances at year-end are: Accrued interest on bonds (498,524) $ Net OPEB obligation (201,480) General obligation bonds (37,203,146) (Premium) discount on general obligation bonds (159,340) Deferred amounts on refunding general obligation bonds 234,350 Compensated absences (1,724,580) Total long-term obligations (39,552,720) Internal service funds are used by management to charge the costs of insurance and automotive services to individual funds. The assets and liabilities of the internal service funds are included in governmental activities in the statement of net assets. 5,868,159 Net position of governmental activities 224,691,448 $ See accompanying notes to financial statements. 54 20 CITY OF LAKE FOREST, ILLINOIS Exhibit A-5 Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the Year Ended April 30, 2013 Parks and Nonmajor Total General Recreation Governmental Governmental Fund Fund Funds Funds Taxes: Property 15,720,048 $ 4,966,513 $ 4,364,850 $ 25,051,411 $ Other 9,437,860 41,334 1,275,113 10,754,307 Intergovernmental revenues - - 612,357 612,357 Grants and contributions 1,526 151,442 1,037,409 1,190,377 Charges for services 2,797,993 2,988,702 1,532,978 7,319,673 Licenses and permits 2,450,194 - - 2,450,194 Fines and forfeitures 368,941 - - 368,941 Investment income 53,506 21,940 387,133 462,579 Miscellaneous revenue 1,202,752 8,225 14,105 1,225,082 Total revenues 32,032,820 8,178,156 9,223,945 49,434,921 Current: General government 10,804,352 - 3,438,416 14,242,768 Highways and streets 2,044,225 - - 2,044,225 Sanitation 2,193,091 - - 2,193,091 Culture and recreation - 8,660,341 622,354 9,282,695 Public safety 13,552,368 - 274,364 13,826,732 Capital outlay - 247,233 4,339,341 4,586,574 Debt service: Principal retirement - - 1,377,736 1,377,736 Interest - - 1,392,342 1,392,342 Total expenditures 28,594,036 8,907,574 11,444,553 48,946,163 Excess (deficiency) of revenues over expenditures 3,438,784 (729,418) (2,220,608) 488,758 Other financing sources (uses): Proceeds from capital asset sales - - 64,549 64,549 Transfers in 107,737 299,970 2,421,536 2,829,243 Transfers out (2,510,942) (78,000) (317,401) (2,906,343) Total other financing sources (uses)(2,403,205) 221,970 2,168,684 (12,551) Net change in fund balances 1,035,579 (507,448) (51,924) 476,207 Fund balances – beginning of year 13,718,013 2,978,916 14,827,811 31,524,740 Fund balances – end of year 14,753,592 $ 2,471,468 $ 14,775,887 $ 32,000,947 $ See accompanying notes to financial statements. Revenues: Expenditures: 55 21 CITY OF LAKE FOREST, ILLINOIS Exhibit A-6 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities For the Year Ended April 30, 2013 Net changes in fund balances—total governmental funds 476,207 $ Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which depreciation expense ($6,294,212) exceeded capital outlay ($1,608,022) in the current period. (4,686,190) Bond proceeds are reported as financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of net position, however, issuing debt increases long-term liabilities and does not affect the statement of activities. Similarly, repayment of principal is an expenditure in the governmental funds but reduces the liability in the statement of net position. Debt issuance costs 22,767 $ Repayments: General obligation bonds 1,377,736 Net adjustment 1,400,503 Under the modified accrual basis of accounting used in the governmental funds, expenditures are not recognized for transactions that are not normally paid with expendable available financial resources. In the statement of activities, however, which is presented on the accrual basis, expenses and liabilities are reported regardless of when financial resources are available. In addition, interest on long-term debt is not recognized under the modified accrual basis of accounting until due, rather than as it accrues. Increase in net pension asset 280,159 Increase in OPEB obligation (32,592) Decrease in accrued interest payable 31,203 Amortization of bond deferred amounts, premiums and discounts 34,196 Amortization of bond issuance costs (35,772) Increase in compensated absences (56,488) 220,706 The net revenue of certain activities of internal service funds is reported with governmental activities.350,610 Change in net position of governmental activities – statement of activities (2,238,164) $ See accompanying notes to financial statements. 56 22 CITY OF LAKE FOREST, ILLINOIS Exhibit A-7 Statement of Net Position Proprietary Funds April 30, 2013 Nonmajor - Governmental Waterworks Deerpath Total Activities— and Sewerage Golf Course Enterprise Internal Service Assets Fund Fund Funds Funds Current assets: Cash and cash equivalents 8,815,595 $ 558,293 $ 9,373,888 $ 6,632,612 $ Receivables: Accounts receivable 1,204,945 1,736 1,206,681 - Other 242 - 242 14,696 Due from other funds 8,408 - 8,408 - Inventories - 106,895 106,895 297,426 Prepaid expenses 72,305 - 72,305 530,267 Total current assets 10,101,495 666,924 10,768,419 7,475,001 Noncurrent assets: Deferred charges – bond issuance costs 75,615 3,493 79,108 - Capital assets: Not being depreciated 363,852 95,517 459,369 - Being depreciated, net of accumulated depreciation 54,423,524 1,596,498 56,020,022 32,936 Total capital assets, net 54,787,376 1,692,015 56,479,391 32,936 Total noncurrent assets 54,862,991 1,695,508 56,558,499 32,936 Total assets 64,964,486 2,362,432 67,326,918 7,507,937 Liabilities Current liabilities: Accounts payable 131,304 56,888 188,192 325,001 Accrued liabilities 37,341 15,094 52,435 540,904 Accrued interest payable 181,794 8,919 190,713 - Unearned revenue 109,619 280,335 389,954 - Current portion of long-term obligations: General obligation bonds 1,730,000 85,000 1,815,000 - Accrued compensated absences 4,240 760 5,000 3,012 Total current liabilities 2,194,298 446,996 2,641,294 868,917 Noncurrent liabilities: Advances from other funds 667,282 - 667,282 - General obligation bonds payable (net of unamortized discounts)17,729,646 856,993 18,586,639 - Accrued compensated absences 164,023 29,394 193,417 50,539 Total noncurrent liabilities 18,560,951 886,387 38,894,676 50,539 Total liabilities 20,755,249 1,333,383 22,088,632 919,456 Net Position Net investment in capital assets 35,327,730 750,022 36,077,752 32,936 Unrestricted 8,881,507 279,027 9,160,534 6,555,545 Total net position 44,209,237 $ 1,029,049 $ 45,238,286 6,588,481 $ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds.720,322 Net position of business-type activities reported in the government-wide statement of net position.45,958,608 $ See accompanying notes to financial statements. Business-type Activities – Enterprise Funds 57 23 CITY OF LAKE FOREST, ILLINOIS Exhibit A-8 Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds For the Year Ended April 30, 2013 Nonmajor - Governmental Waterworks Deerpath Total Activities— and Sewerage Golf Course Enterprise Internal Service Fund Fund Funds Funds Operating revenues: Charges for services 8,501,694 $ 1,320,455 $ 9,822,149 $ 8,009,445 $ Connection fees 89,060 - 89,060 - Miscellaneous 7,325 - 7,325 - Total operating revenues 8,598,079 1,320,455 9,918,534 8,009,445 Operating expenses: General and administrative 2,706,523 569,521 3,276,044 7,650,687 Operations and maintenance 2,348,675 695,149 3,043,824 - Depreciation and amortization 2,598,896 177,831 2,776,727 4,804 Total operating expenses 7,654,094 1,442,501 9,096,595 7,655,491 Operating income (loss) 943,985 (122,046) 821,939 353,954 Nonoperating revenues (expenses): Investment income 35,167 2,686 37,853 28,617 Gain (loss) on disposal of capital assets (2,284) - (2,284) - Interest expense (656,808) (22,965) (679,773) - Total nonoperating revenues (expenses)(623,925) (20,279) (644,204) 28,617 Increase (decrease) in net position before transfers 320,060 (142,325) 177,735 382,571 Transfers in - 78,000 78,000 - Transfers out (900) - (900) - Change in net position 319,160 (64,325) 254,835 382,571 Net position – beginning of year 43,890,077 1,093,374 44,983,451 6,205,910 Net position – end of year 44,209,237 $ 1,029,049 $ 45,238,286 6,588,481 $ Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 31,961 Change in net position of business-type activities reported in the government-wide statement of activities 286,796 $ See accompanying notes to financial statements. Business-type Activities – Enterprise Funds 58 24 CITY OF LAKE FOREST, ILLINOIS Exhibit A-9 Statement of Cash Flows Proprietary Funds For the Year Ended April 30, 2013 Nonmajor - Governmental Waterworks Deerpath Total Activities - and Sewerage Golf Course Enterprise Internal Service Fund Fund Funds Funds Cash flows from operating activities: Receipts from customers 8,618,341 $ 1,282,713 $ 9,901,054 $ -$ Receipts from miscellaneous revenue 7,296 - 7,296 - Receipts from interfund services provided - - - 7,999,016 Payments to suppliers (2,377,973) (727,647) (3,105,620) (6,956,041) Payments to employees (1,883,343) (567,994) (2,451,337) (665,369) Net cash flows from operating activities 4,364,321 (12,928) 4,351,393 377,606 Cash flows from noncapital financing activities: Transfer from other funds - 78,000 78,000 - Transfer to other funds (900) - (900) - Net cash flows provided from noncapital financing activities (900) 78,000 77,100 - Cash flows from capital and related financing activities: Purchases of capital assets (418,319) (67,700) (486,019) - Principal paid on capital debt (1,660,000) (84,000) (1,744,000) - Interest paid on capital debt (541,721) (16,823) (558,544) - Net cash flows from capital and related financing activities (2,620,040) (168,523) (2,788,563) - Cash flows from investing activities: Interest and dividends received 38,499 2,686 41,185 28,617 Net increase (decrease) in cash and cash equivalents 1,781,880 (100,765) 1,681,115 406,223 Cash and cash equivalents – beginning of year 7,033,715 659,058 7,692,773 6,226,389 Cash and cash equivalents – end of year 8,815,595 $ 558,293 $ 9,373,888 $ 6,632,612 $ (Continued) Business-type Activities – Enterprise Funds 59 25 CITY OF LAKE FOREST, ILLINOIS Exhibit A-9, Continued Statement of Cash Flows (Continued) Proprietary Funds For the Year Ended April 30, 2013 Nonmajor - Governmental Waterworks Deerpath Total Activities— and Sewerage Golf Course Enterprise Internal Service Fund Fund Funds Funds Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss)943,985 $ (122,046) $ 821,939 $ 353,954 $ Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation expense 2,598,896 177,831 2,776,727 4,804 Changes in assets and liabilities: Water sales receivable 35,995 - 35,995 - Accounts receivable (20,972) (1,736) (22,708) (8,504) Other receivables (29) - (29) - Other assets - (32,340) (32,340) (9,313) Due from other funds (8,408) - (8,408) - Prepaid expenses 112,280 - 112,280 - Accounts payable (7,098) (561) (7,659) 41,633 Accrued liabilities 9,875 2,476 12,351 2,453 Unearned revenue 20,972 (36,006) (15,034) (1,925) Compensated absences 11,543 (546) 10,997 (5,496) Advances 667,282 - 667,282 - Total adjustments 3,420,336 109,118 3,529,454 23,652 Net cash flows from operating activities 4,364,321 $ (12,928) $ 4,351,393 $ 377,606 $ See accompanying notes to financial statements. Business-type Activities – Enterprise Funds 60 26 Exhibit A-10 Pension Private Trust Purpose Agency Assets Funds Trust Fund Fund Cash and cash equivalents 2,489,438 $ 18,667 $ 60,174 $ Investments: U.S. Treasury obligations 6,094,234 - - U.S. Government agencies 11,971,066 - - Municipal and corporate bonds 5,562,679 107,566 - Common stock 1,811,953 435,379 - Equity mutual funds 24,951,205 - - Other receivables 210,026 198 - Prepaid expenses 11,981 - - Total assets 53,102,582 561,810 60,174 Liabilities Accounts payable 6,626 - - Due to other funds - 84,677 - Due to special assessment districts - - 60,174 Total liabilities 6,626 84,677 60,174 Net Position Held in trust for pension trust and other purposes 53,095,956 $ 477,133 $ -$ See accompanying notes to financial statements. CITY OF LAKE FOREST, ILLINOIS Statement of Fiduciary Net Position Fiduciary Funds April 30, 2013 61 27 Exhibit A-11 Pension Private Trust Purpose Funds Trust Fund Additions: Contributions: Employer 2,528,420 $ -$ Employee 611,169 - Total contributions 3,139,589 - Interest income 1,308,068 11,097 Net appreciation in fair value of investments 3,207,490 54,122 Less investment expenses (207,793) - Net investment income 4,307,765 65,219 Total additions 7,447,354 65,219 Deductions: Pension benefits and refunds 3,370,193 - Other administrative expenses 11,600 34,573 Total deductions 3,381,793 34,573 Change in net position 4,065,561 30,646 Net position held in trust at beginning of year 49,030,395 446,487 Net position held in trust at end of year 53,095,956 $ 477,133 $ See accompanying notes to financial statements. CITY OF LAKE FOREST, ILLINOIS Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended April 30, 2013 62 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 28 (Continued) Note 1. Summary of Significant Accounting Policies The City of Lake Forest, Illinois (City) was incorporated under a charter granted by the Illinois State Legislature in 1861 and amended in 1869. The City is a home-rule community that operates under a City Council-Manager form of government. The City provides many services to residents including police and fire protection, water and sewers, recreation, refuse collection, a senior center, public library, a cemetery, and a golf course. The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The following is a summary of the more significant policies. (a) Reporting Entity As defined by generally accepted accounting principles (GAAP) established by the Governmental Accounting Standards Board (GASB), the financial reporting entity consists of the primary government, as well as its component units, which are legally separate organizations for which the elected officials of the primary government are financially accountable. Financial accountability is defined as: (1) Appointment of a voting majority of the component unit’s board, and either (a) the ability to impose will by the primary government, or (b) the possibility that the component unit will provide a financial benefit to or impose a financial burden on the primary government; or (2) Fiscal dependency on the primary government. The accompanying financial statements present the City of Lake Forest (the primary government) and its component unit. The financial data of the component unit are included in the City’s reporting entity because of the significance of its operational or financial relationship with the City. Discretely Presented Component Unit Discretely presented component units are entities that are legally separate from the City, but for which the City is financially accountable, or whose relationship with the City are such that exclusion would cause the City’s statements to be misleading or incomplete. The City’s component unit is reported in a separate column to emphasize that it is legally separate from the City. Lake Forest Library (Library) – The Library is governed by a seven-member Board of Trustees appointed by the Mayor of the City. The Library is financially accountable to the City as the City’s approval is needed for the Library to issue bonded debt. Complete financial statements of the Library are available at the City’s Administrative Office, 800 North Field Drive, Lake Forest, Illinois 60045. The Library follows the same accounting policies as the City. (b) Basis of Presentation Government-wide Financial Statements. The government-wide statement of net position and statement of activities report the overall financial activity of the City, excluding fiduciary activities. Eliminations have been made to minimize the double-counting of internal activities of the City. These statements distinguish between the governmental and business-type activities of the City. However, interfund services provided for and used are not eliminated in the process of consolidation. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties. 63 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 29 (Continued) The statement of activities presents a comparison between direct expenses and program revenues for the different business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Fund Financial Statements. The fund financial statements provide information about the City’s funds, including its fiduciary funds. Separate statements for each fund category ― governmental, proprietary, and fiduciary ― are presented. The emphasis on fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. The City reports the following major governmental funds: General Fund – This is the City’s primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. The services which are administered by the City and accounted for in the General Fund include, among others, City Council, Finance, Administration, Police, Fire and Public Works. Parks and Recreation Fund – This fund accounts for the maintenance of the parks and recreation programs. Services include a fitness center, dance academy, and a variety of other indoor and outdoor programs. Principal revenue sources for this fund include a dedicated tax levy, grants, contributions and program fees. The City reports the following major proprietary fund: Waterworks and Sewerage Fund – This fund accounts for the provision of water and sewer services to the residents of the City. Additionally, the City reports the following fund types: Internal Service – These funds account for the self-insured medical and dental benefits for City employees, the costs of liability insurance, and for the costs of operating a maintenance and repair facility for automotive and other equipment used by the City departments. Pension Trust Funds – These funds account for the accumulation of resources to be used for disability or retirement annuity payments to uniformed police and fire department personnel at appropriate amounts and times in the future. Private Purpose Trust Fund – This fund is used to account for monies provided by private donations on which the investment earnings are expected to be used for the maintenance of each individual’s cemetery plot. Agency Fund – This fund is custodial and accounts for amounts held for special assessment districts. 64 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 30 (Continued) (c) Basis of Accounting The government-wide, proprietary, and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, except for agency funds which have no measurement focus. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flow takes place. Non-exchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenues from property taxes are recognized in the period for which the levy is intended to finance, which is the year after the taxes are levied. For example, the 2011 property tax levy is recognized as revenue for the year ended April 30, 2013. Revenue from grants and other contributions are recognized in the fiscal year in which all eligibility requirements imposed by the provider have been met. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the fiscal year when use is first permitted; matching requirements, in which the City must provide local resources to be used for a specified purpose; and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues, except for property taxes, to be available if they are collected within 90 days of the end of the current fiscal period. Revenues for property taxes are considered to be available if they are collected within 60 days of the end of the current fiscal year. Expenditures generally are recorded when the liability is incurred, as under accrual accounting. However, principal and interest on long- term debt, claims and judgments, and compensated absences are recorded only when payment is due. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of long-term debt and acquisitions under capital leases are reported as other financing sources. Significant revenue sources which are susceptible to accrual include property taxes, miscellaneous taxes, charges for services, grants, and investment income. All other revenue sources including fines and forfeitures, inspection fees, and recreation fees are considered to be measurable and available only when cash is received. Proprietary fund revenues are classified as either operating or nonoperating. Operating revenues and expenses generally result from providing services in connection with the proprietary fund’s principal ongoing operations. Operating revenue includes activities that have characteristics of exchange transactions including charges for services. Non-operating revenue includes activities that have the characteristics of non-exchange transactions, such as most grants and subsidies. Nonoperating revenues also include investment income. Nonoperating expenses include interest expense. (d) Cash and Cash Equivalents The City considers all highly liquid investments with a maturity date within three months of the date acquired to be cash equivalents. 65 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 31 (Continued) (e) Investments Investments are reported at fair value based upon quoted market prices. The City is authorized to invest in the following types of securities under Illinois law and the City’s investment policy: • Bonds, notes, certificates of indebtedness, treasury bills, or other securities which are guaranteed by the full faith and credit of the United States of America; • Bonds, notes, debentures, or other similar obligations of U.S. Government or its agencies; • Interest bearing bonds of any county, township, city, incorporated town, municipal corporation, or school district, and the bonds shall be registered in the name of the municipality or held under a custodial agreement at a bank, provided the bonds shall be rated at the time of purchase within the 4 highest general classifications established by a rating service of nationally recognized expertise in rating bonds of states and their political subdivisions; • Interest-bearing savings accounts, interest-bearing certificates of deposit, interest-bearing deposits, or any other investments constituting direct obligations of any bank as defined by the Illinois Banking Act (205 ILCS 5/1 et seq.), provided, however, that such investments may be made only in banks which are insured by the Federal Deposit Insurance Corporation; • Commercial Paper – issuer must be a United States corporation with more than $500 million in assets, rating must be within the highest tier (e.g., A-1, P-1, F-1, D-1, or higher) by two standard rating services, must mature within 180 days of purchase, such purchases cannot exceed 10% of the corporation’s outstanding obligations, and such purchases cannot exceed one-third of funds; • Money Market Mutual Funds – registered under the Investment Company Act of 1940 (15 U.S.C.A. § 80a-1 et seq.), provided the portfolio is limited to bonds, notes, certificates, treasury bills, or other securities which are guaranteed by the full faith and credit of the federal government as to principal and interest; • Short term discount obligations of the Federal National Mortgage Association (established by or under the National Housing Act (1201 U.S.C. 1701 et seq.)), or in shares or other forms of securities legally issuable by savings banks or savings and loan associations incorporated under the laws of Illinois or any other state or under the laws of the United States, provided, however, that the shares or investment certificates of such savings banks or savings and loan associations are insured by the Federal Deposit Insurance Corporation; • Dividend-bearing share accounts, share certificates accounts, or class of share accounts of a credit union chartered under the laws of the State of Illinois or the laws of the United States; provided, however, the principal office of the credit unions must be located within the State of Illinois; and, provided further, that such investments may be made only in those credit unions the accounts of which are insured by applicable law; • The Public Treasurer’s Investment Pool created under Section 17 of the State Treasurer Act (15 ILCS 505/17) or in a fund managed, operated, and administered by a bank, subsidiary of a bank, or subsidiary of a bank holding company, or use the services of such an entity to hold and invest or advise regarding the investment of any public funds; and 66 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 32 (Continued) • Repurchase agreements of government securities having the meaning set out in the Government Securities Act of 1986 (15 U.S.C.A. § 780-5) subject to the provisions of that Act and the regulations issued thereunder, provided, however, that such government securities, unless registered or inscribed in the name of the City, shall be purchased through banks or trust companies authorized to do business in the State of Illinois; and such other repurchase agreements as are authorized in subsection (h) of Section 2 of the Public Funds Investment Act (30 ILCS 235/2). Repurchase agreements may be executed only with approved financial institutions or broker/dealers meeting the City’s established standards, which shall include mutual execution of a Master Repurchase Agreement adopted by the City. The Lake Forest Cemetery Investment Fund is also permitted to invest in the following instruments: • Common and preferred stock authorized for investments of trust funds under the laws of the State of Illinois limited to 60% of the fund’s investments. In addition, Pension Funds are also permitted to invest in the following instruments: • Common and preferred stock authorized for investments of trust funds under the laws of the State of Illinois limited to 35% of the fund’s investments; • General accounts of Illinois-licensed life insurance companies; • Separate accounts of Illinois-licensed insurance companies invested in stocks, bonds, and real estate limited to 10% of the fund’s investments; • Bonds issued by any county, city, township, village, incorporated town, municipal corporation, or school district in Illinois; and • Tax anticipation warrants issued by any city, township, village, incorporated town, or fire protection district in Illinois. (f) Unbilled Water Sales Receivables Estimated water sales for water usage prior to year-end that are unbilled are recognized as current year revenues and are included in water sales receivables. (g) Interfund Transactions The City has the following types of interfund transactions: Loans—amounts provided with a requirement for repayment. Interfund loans are reported as interfund receivables (i.e. due from other funds) in lender funds and interfund payables (i.e. due to other funds) in borrower funds. Noncurrent portions of long-term interfund loan receivables are reported as advances and are offset equally by a fund balance reserve account which indicates that they do not constitute expendable available financial resources and therefore are not available for appropriation. Services provided and used—sales and purchases of goods and services between funds for a price approximating their external exchange value. Interfund services provided and used are reported as revenues in seller funds and expenditures or expenses in purchaser funds. Unpaid amounts are reported as interfund receivables and payables in the fund balance sheets or fund statements of net position. 67 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 33 (Continued) Reimbursements—repayments from the funds responsible for particular expenditures or expenses to the funds that initially paid for them. Reimbursements are reported as expenditures in the reimbursing fund and as a reduction of expenditures in the reimbursed fund. Transfers—flows of assets (such as cash or goods) without equivalent flows of assets in return and without a requirement for repayment. In governmental funds, transfers are reported as other financing uses in the funds making transfers and as other financing sources in the funds receiving transfers. In proprietary funds, transfers are reported after nonoperating revenues and expenses. (h) Inventory and Prepaid Items Inventory is recorded at cost. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements, using the consumption method. (i) Capital Assets Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges, traffic controls, drainage systems, and similar items), and intangible assets (software, easements, etc.) are reported in the applicable governmental or business-type activities columns in the government- wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $10,000 and an estimated useful life in excess of one year. Purchased capital assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated capital assets are valued at their estimated fair market value on the date received. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized, whereas improvements extending the useful lives of the related capital assets are capitalized. Interest is capitalized on proprietary fund property acquired with tax-exempt debt. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project with interest earned on invested proceeds over the same period. Capitalized interest cost is amortized on the same basis as the related asset is depreciated. During the year ended April 30, 2013, there was no interest expense capitalized in the enterprise funds. 68 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 34 (Continued) Capital assets of the City and its component unit (Lake Forest Library) are depreciated using the straight-line method over the following useful lives: Public domain infrastructure 20 – 60 years Buildings 30 – 50 years Improvements other than buildings 40 – 80 years Vehicles, machinery, equipment and software 3 – 20 years Water mains 40 years Sanitary sewers 50 years (j) Compensated Absences The liability for compensated absences reported in the government-wide and proprietary fund statements consists of unpaid, accumulated vacation and sick leave balances. The liability for compensated absences is only reported in the governmental funds if they have matured. The liability has been calculated using the vesting method, in which leave amounts for both employees who currently are eligible to receive termination payments and other employees who are expected to become eligible in the future to receive such payments upon termination are included. (k) Bond Premiums, Discounts, and Issuance Costs In the government-wide and proprietary fund financial statements, bond premiums and discounts, as well as issuance costs and deferred amounts on refunding, are deferred and amortized over the life of the bonds using the straight line method which is not materially different from the effective interest method. Bonds payable are reported net of the applicable bond premium, discount and deferred amount on refunding. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. (l) Net Position In the government-wide and proprietary fund financial statements, equity is displayed in three components as follows: Net Investment in Capital Assets – This consists of capital assets, net of accumulated depreciation, less the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted – This consists of net position that is legally restricted by outside parties or by law through constitutional provisions or enabling legislation. Unrestricted – This consists of net position that does not meet the definition of “restricted” or “invested in capital assets, net of related debt.” 69 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 35 (Continued) See the policy below for the use of restricted resources in the governmental funds. Restricted net asset balances may differ from restricted fund balances reported in the governmental fund statements because the basis of accounting is different. For business-type activities and proprietary funds, the City considers restricted resources to have been spent first when an expense is incurred for which both restricted and unrestricted resources are available. (m) Fund Balances Governmental Accounting Standards Board Statement No. 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type Definitions establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in the governmental funds. Within the governmental fund types, the City’s fund balances are reported in one of the following classifications: Nonspendable – includes amounts that cannot be spent because they are either: a) not in spendable form; or b) legally or contractually required to be maintained intact. Restricted – includes amounts that are restricted to specific purposes, that is, when constraints placed on the use of resources are either: a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or b) imposed by law through constitutional provisions or enabling legislation. Committed – includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City’s highest level of decision-making authority. Committed amounts cannot be used for any other purpose unless the City removes or changes the specified use by taking the same type of action it employed to previously commit those amounts. The City’s highest level of decision-making authority rests with the City Council. The City passes formal resolutions to commit their fund balances. Assigned – includes amounts that are constrained by the City’s intent to be used for specific purposes, but that are neither restricted nor committed. Intent is expressed by: a) the City Council itself; or b) a body or official to which the City Council has delegated the authority to assign amounts to be used for specific purposes. The City Council has delegated this authority to the City’s Finance Director. Within the other governmental fund types (special revenue, debt service, capital projects) resources are assigned in accordance with the established fund purpose and approved budget/appropriation. Residual fund balances in these fund types that are not restricted or committed are reported as assigned. Unassigned – includes the residual fund balance that has not been restricted, committed, or assigned within the general fund and deficit fund balances of other governmental funds. In the general fund, it is the City’s policy to consider restricted resources to have been spent first when an expenditure is incurred for which both restricted and unrestricted (i.e. committed, assigned or unassigned) fund balances are available, followed by committed and then assigned fund balances. Unassigned amounts are used only after the other resources have been used. In other governmental funds (special revenue, capital projects and debt service fund types), it is the City’s policy to consider restricted resources to have been spent last. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balances are available, the City first utilizes any assigned amounts, followed by committed and then restricted amounts. 70 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 36 (Continued) Fund Balance Classifications At April 30, 2013, the City’s fund balances were as follows: Parks and Nonmajor Total General Recreation Governmental Governmental Fund Fund Funds Funds Nonspendable Prepaids 43,065 $ -$ 43,333 $ 86,398 $ Inventory 44,339 - - 44,339 Interfund advances 667,282 - - 667,282 Long-term notes 2,020,763 - - 2,020,763 Total nonspendable 2,775,449 - 43,333 2,818,782 Restricted: Culture and recreation - 2,471,468 685,008 3,156,476 Highways and streets - - 802,946 802,946 Public safety - - 493,184 493,184 Cemetery purposes - - 4,101,381 4,101,381 Affordable housing - - 765,794 765,794 Capital projects - - 3,878,148 3,878,148 Parking lots 957,420 - - 957,420 Debt service - - 2,407,274 2,407,274 Total restricted 957,420 2,471,468 13,133,735 16,562,623 Assigned Capital projects - - 1,598,819 1,598,819 Unassigned 11,020,723 - - 11,020,723 Total fund balances 14,753,592 $ 2,471,468 $ 14,775,887 $ 32,000,947 $ (n) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. (o) New Accounting Pronouncements GASB Statement No. 61, The Financial Reporting Entity: Omnibus—an amendment of GASB Statements No. 14 and No. 34, will be effective for the City beginning with its year ending April 30, 2014. The objective of this Statement is to improve financial reporting for a governmental financial reporting entity. The requirements of Statement No. 14, The Financial Reporting Entity, and the related financial reporting requirements of Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, were amended to better meet user needs and to address reporting entity issues that have arisen since the issuance of those Statements. 71 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 37 (Continued) GASB Statement No. 65, Items Previously Recorded as Assets and Liabilities reclassifies, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources (expenses) or inflows of resources (revenues), items that were previously reported as assets or liabilities. This will be effective for the City for the year ending April 30, 2014. GASB Statement No. 66, Technical Corrections-2012-an amendment of GASB Statements No. 10 and No. 62 resolves conflicting guidance that resulted from the issuance of GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, and No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. This Statement removes the provisions that limits fund based reporting of risk financing activities. This Statement also modifies specific guidance on accounting for certain operating leases and certain loans. This will be effective for the City for the year ending April 30, 2014. GASB Statement No. 67, Financial Reporting for Pension Plans, will be effective for the City beginning with its year ended April 30, 2015. This statement builds upon the existing framework for financial reports of defined benefit pension plans, which includes a statement of fiduciary net position (the amount held in a trust for paying retirement benefits) and a statement of changes in fiduciary net position. This statement enhances note disclosures and RSI for both defined benefit and defined contribution pension plans and requires the presentation of new information about annual money- weighted rates of return in the notes to the financial statements and in 10-year RSI schedules. GASB Statement No. 68, Accounting and Financial Reporting for Pensions, will be effective for the City beginning with its year ended April 30, 2016. This statement requires governments providing defined benefit pensions to recognize their long-term obligation for pension benefits as a liability for the first time, and to more comprehensively and comparably measure the annual costs of pension benefits. This statement also enhances accountability and transparency through revised and new note disclosures and required supplementary information (RSI). GASB Statement No. 69, Government Combinations and Disposals of Government Operations will be effective for the City beginning with its year ended April 30, 2015. This Statement establishes accounting and financial reporting standards related to government combinations and disposals of government operations. As used in this Statement, the term government combinations include a variety of transactions referred to as mergers, acquisitions, and transfers of operations. GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, will be effective for the City with its year ended April 30, 2015. This statement requires a government that extends a nonexchange financial guarantee to recognize a liability when qualitative factors and historical data, if any, indicate that it is more likely than not that the government will be required to make a payment on the guarantee. This Statement requires a government that has issued an obligation guaranteed in a nonexchange transaction to recognize revenue to the extent of the reduction in its guaranteed liabilities. This Statement also requires a government that is required to repay a guarantor for making a payment on a guaranteed obligation or legally assuming the guaranteed obligation to continue to recognize a liability until legally released as an obligor. Management has not fully determined what impact, if any, these Statements may have on its financial statements; however, GASB Statements 67 and 68 are expected to have a material impact when implemented. 72 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 38 (Continued) Note 2. Stewardship, Compliance and Accountability Budgetary Information The budget amounts represent the operating budget for the City and the appropriations represent the City’s legal expenditure limit. The City Council follows these procedures in establishing the budgetary and appropriations data reflected in the financial statements: (1) The City Manager submits to the City Council a proposed operating budget for the fiscal year. The operating budget includes proposed expenditures and estimated revenues. (2) Public budget and appropriations meetings are conducted by the City to obtain taxpayer comments. (3) The budget and the appropriation ordinance, which is 10% higher than the budget, are both legally enacted through action of the City Council. Once enacted, the budget cannot be amended without approval from the City Council. Funds may have expenditures in excess of budgeted amounts, but legally may not have expenditures in excess of appropriations. (4) The legal level of budgetary control is the fund level. Management may make transfers of appropriations within a fund. Any expenditures that exceed the total appropriations at the fund level must be approved by the City Council. (5) Formal budgetary integration and legally adopted budgets are employed as a management control device during the year for the General and Special Revenue Funds, through an internal reporting system. Such budgetary integration permits the City’s department managers to monitor actual revenues and expenditures relative to budgets on an ongoing basis throughout the year. Formal encumbrance accounting is not used, and appropriations not used by the end of the fiscal year lapse. (6) Governmental fund budgets are adopted for all funds and are on a basis consistent with generally accepted accounting principles (GAAP). All proprietary funds have budgets and are generally in accordance with GAAP except that principal retirement is budgeted and depreciation expense is not budgeted. Additionally, the Pension Trust Funds adopt budgets which are generally in accordance with GAAP. 73 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 39 (Continued) Note 3. Cash and Investments Cash and investments are held separately and in pools by several of the City’s funds. The City maintains various cash and investment pools that are available for use by all funds. Income from pooled investments is allocated to the funds based on their proportional share of their investment balance. The deposits and investments of the Police and Fire Pension Funds (Pension Funds) are held separately. A summary of cash and investments as of April 30, 2013 is as follows: Component Unit Governmental Police Firefighters' Other Lake and Business- Pension Pension Fiduciary Forest type Activities Fund Fund Activities Library Petty cash 10,025 $ -$ 300 $ -$ 350 $ Demand deposits 42,292,881 180,091 2,309,047 78,841 1,274,338 Certificate of deposit 163,911 - - - - Illinois Funds 725,272 - - - 4,235 Equity securities 3,385,333 13,213,476 13,549,682 542,945 - U.S. Treasury obligations - 3,710,813 2,383,421 - - U.S. Government agencies - 6,031,170 5,939,896 - - Municipal/corporate bonds - 958,306 4,604,373 - - Total 46,577,422 $ 24,093,856 $ 28,786,719 $ 621,786 $ 1,278,923 $ Fiduciary activities Illinois Funds Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Funds’ share price, which is the price the investment could be sold for. Investment Policies The City and the Library’s investments are made in accordance with the Public Funds Investment Act (30 ILCS 235/1) (the “Act”) and the City’s investment policy. The Cemetery Investment Fund’s investments are made in accordance with the Cemetery Care Act (760 ILCS 100/1-24) (the “Act”) and the Cemetery commission’s investment policy. The Police and Firefighters’ Pension Funds’ investments are made in accordance with the Illinois Pension Code (40 ILCS 5/1-113.2 to 113.10) and each respective pension funds’ investment policy. A summary of authorized investments is included in Note 1e. 74 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 40 (Continued) Custodial Credit Risk – Deposits Custodial credit risk for deposits is the risk that in the event of a financial institution failure, the City’s deposits may not be returned. The City’s investment policy requires that deposits that exceed the amount insured by FDIC, NCUA, and/or SIPC insurance protection be collateralized, at the rate of 110% of such deposits, by U.S. Government Securities, obligations of Federal instrumentalities, obligations of the State of Illinois, or general obligation bonds of the City. The Cemetery Investment Fund and the Pension Funds do not have a deposit policy for custodial credit risk. As of April 30, 2013, the City, Cemetery Investment Fund and the Police and Firefighters’ Pension Funds’ bank balances were not subject to custodial credit risk as they were either insured or collateralized with investments held by the City or its agent, in the City’s name. Interest Rate Risk Interest rate risk is the risk that the fair value of investments will decrease as a result of an increase in interest rates. Although the City and Cemetery Fund’s investment policy does not specifically limit the length of maturity of investments, it requires the City and Cemetery Fund to minimize the interest rate risk by structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity and by investing operating funds primarily in short-term securities, money market mutual funds, or similar investment pools. The Police Pension Fund’s investment policy does not limit the length of maturity of investments since it is passively managing its fixed income exposure to the Barclays Capital Intermediate Government Index. Although the Firefighters’ Pension Fund’s investment policy does not specifically limit the length of maturity of investments, it manages interest rate risk by investing fixed income assets in proportion to the present value of the Fund’s projected liabilities. As of April 30, 2013, the maturities for debt securities subject to interest rate risk are as follows: Fair Less More Value than 1 1-5 6-10 than 10 Fiduciary activities: Police Pension Fund: U.S. Treasury obligations 3,710,813 $ 160,050 $ 383,790 $ 3,166,973 $ -$ U.S. Government agencies 6,031,170 979,740 3,517,427 1,534,003 - Municipal/corporate bonds 958,306 304,034 353,889 300,383 - Total Police Pension 10,700,289 1,443,824 4,255,106 5,001,359 - Firefighters' Pension Fund: U.S. Treasury obligations 2,383,421 151,559 711,072 1,520,790 - U.S. Government agencies 5,939,896 525,943 2,647,916 647,569 2,118,468 Municipal/corporate bonds 4,604,373 262,686 2,337,163 2,004,524 - Total Firefighters' Pension 12,927,690 940,188 5,696,151 4,172,883 2,118,468 Total fiduciary activities 23,627,979 $ 2,384,012 $ 9,951,257 $ 9,174,242 $ 2,118,468 $ Investment maturities (in years) 75 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 41 (Continued) Credit Risk Credit risk is the risk that the City or Pension Funds will not recover their investments due to the inability of the counterparty to fulfill its obligation. The City’s investment policy limits the City’s exposure to credit risk by limiting investments to the safest types as described in Note 1e. The Cemetery and Pension Fund’s general investment policy is to follow the prudent person rule subject to the specific restrictions of the Illinois Cemetery Care Act and the Illinois Pension Code and the respective Cemetery and Pension Funds’ asset allocation policy. Under the prudent person rule, investments shall be made with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with such matters would use in the investment of a fund or like character and with like aims. The Cemetery and Police Pension Funds’ investment policy further limits the investment in any one company or issuer to 5% of the funds’ total assets. The Cemetery Fund also limits the investment in any one equity industry group to no more than 15% of the Fund’s assets. As of April 30, 2013, the City, Cemetery Investment Fund, and Pension Funds had the following fixed income investments which are rated by Moody’s and/or Standard and Poor’s. U.S. Treasury obligations which are backed by the full faith and credit of the U.S. Government are not included in the chart below. Fair Value AAA AA A BBB Governmental and business-type activities: Illinois Funds 725,272 $ 725,272 $ -$ -$ -$ Fiduciary activities: Police Pension Fund: U.S. Government agencies 6,031,170 $ 6,031,170 $ -$ -$ -$ Municipal/corporate bonds 958,306 - 194,600 623,772 139,934 Firefighters' Pension Fund: U.S. Government agencies 5,939,896 5,939,896 - - - Municipal/corporate bonds 4,604,373 357,185 419,059 2,071,204 1,756,925 10,544,269 6,297,081 419,059 2,071,204 1,756,925 Total fiduciary activities 11,502,575 $ 6,297,081 $ 613,659 $ 2,694,976 $ 1,896,859 $ Credit ratings Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of investment in any one single issuer. The Firefighters’ Pension holds 6.5% of its portfolio in GNMA securities as well as 6.8% in FNMA securities. The Police Pension Fund holds 5.7% of its portfolio in FHLB securities, 7.3% in FHLMC securities, as well as 12.0% in FNMA securities. 76 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 42 (Continued) Custodial Credit Risk Custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of a third party. The investment policies for the City, Cemetery and Pension Funds require investment securities be held by an authorized custodial bank pursuant to a written custodial agreement. Foreign Currency Risk Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an investment or deposit. As of April 30, 2013, 7.6% of the Firefighters’ Pension Fund’s assets were invested in the Vanguard Total International Stock Index. The funds are subject to foreign currency risk. To diversify risk, the Firefighters’ Pension Fund utilizes an equity asset allocation that incorporates a variety of management styles. The allocations are reviewed quarterly and rebalanced if necessary. As of April 30, 2013, 14.8% of the Police Pension Fund’s assets were invested in the Dodge & Cox International Stock Fund, Vanguard Total International Stock Index Fund, as well as foreign stocks and bonds. The funds are subject to foreign currency risk; however, the funds are well diversified across international regions. The Cemetery Fund had 18.8% of its assets invested in William Blair International Growth Fund as of April 30, 2013. Note 4. Property Tax The City’s property tax is levied each calendar year on all taxable real property located in the City. The City is a special charter community under the 1870 Illinois Constitution and, accordingly, does not have a statutory tax rate limit. The Lake County Assessor (Assessor) is responsible for assessment of all taxable real property within Lake County, except for certain railroad property which is assessed directly by the State. One quarter of Lake County is reassessed each year on a repeating quadrennial schedule established by the Assessor. The Lake County Clerk computes the annual tax rate by dividing the levy into the assessed valuation of the taxing district. The County Clerk then computes the rate for each parcel of real property by aggregating the tax rates of all taxing districts having jurisdiction over that particular parcel. Property taxes are collected by the Lake County Collector and are submitted to the Lake County Treasurer, who remits to the units their respective shares of the collections. Taxes levied in one year become due and payable in two installments in June and September during the following year. Taxes must be levied by the last Tuesday in December for the following levy year. The levy becomes an enforceable lien against the property as of January 1 of the levy year. The property tax levy is recorded as a receivable, net of estimated uncollectibles. Based upon collection histories, the City has provided an allowance for uncollectible real property taxes equivalent to 1.5% of the current year’s levy. All uncollected taxes relating to prior years’ levies have been written off. Revenue for property taxes is recognized in the governmental funds in the year for which the taxes are intended to finance and the funds are available. The City considers property tax revenue to be available if it is collected during the current year or within 60 days after year-end. Property taxes levied for calendar year 2012 are intended to finance the fiscal year 2014 expenditures. Accordingly, the City recognized revenue during the year ended April 30, 2013 for collections from the calendar year 2011 levy if it was received by June 30, 2013. Property taxes levied for calendar year 2012 which will be collected in fiscal year 2014 are recorded as receivables and deferred revenue. 77 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 43 (Continued) Note 5. Interfund Balances and Activity Due to/from Other Funds The following balances at April 30, 2013 represent amounts due to/from other funds: Receivable fund Payable fund Amount Waterworks and Sewerage Fund Debt Service Fund 819 $ Waterworks and Sewerage Fund Debt Service Fund 7,589 Nonmajor Governmental Fund Fiduciary Fund 84,677 Total 93,085 $ These balances result from operating transactions between funds and will be repaid during the next fiscal year within the normal course of business. Advances to/from Other Funds The following balances at April 30, 2013 represent amounts Advanced to/from other funds: General Fund Waterworks and Sewerage Fund 667,282 $ This balance resulted from operating transactions between funds and will be repaid over the next five years within the normal course of business. Transfers to/from Other Funds Interfund transfers for the year ended April 30, 2013 were as follows: Transfer In Fund(s)Purpose Amount General Fund Transfer for capital outlay 107,737$ Parks and Recreation Transfer for operations 299,970 Nonmajor business activity Transfer for operations 78,000 Nonmajor governmental Transfer for capital outlay 1,609,664 Nonmajor governmental Transfer for operations 213,388 Nonmajor governmental Transfer for debt service 598,484 2,907,243$ Transfer Out Fund(s) General Fund Transfer for capital outlay 1,400,000$ General Fund Transfer for operations 513,358 General Fund Transfer for debt service 597,584 Parks and Recreation Transfer for operations 78,000 Waterworks and Sewerage Fund Transfer for debt service 900 Nonmajor governmental Transfer for capital outlay 317,401 2,907,243$ 78 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 44 (Continued) Note 6. Capital Assets A summary of capital asset activity for the year ended April 30, 2013 is as follows: Balance Additions Balance May 1, 2012 or Transfers Disposals April 30, 2013 Governmental Activities: Capital assets not being depreciated: Land and land improvements 45,497,634 $ -$ -$ 45,497,634 $ Infrastructure – land 66,740,770 - - 66,740,770 Construction in progress 209,178 - 209,178 - Total capital assets not being depreciated 112,447,582 - 209,178 112,238,404 Capital assets being depreciated: Infrastructure 181,053,854 20,447 - 181,074,301 Buildings 32,137,757 - - 32,137,757 Improvements other than buildings 29,574,021 776,668 - 30,350,689 Machinery and equipment 14,746,936 1,020,085 392,034 15,374,987 Total capital assets being depreciated 257,512,568 1,817,200 392,034 258,937,734 Less accumulated depreciation: Infrastructure 113,320,214 3,035,078 - 116,355,292 Buildings 9,057,013 751,992 - 9,809,005 Improvements other than buildings 8,171,439 1,403,013 - 9,574,452 Machinery and equipment 10,091,823 1,108,933 392,034 10,808,722 Total accumulated depreciation 140,640,489 6,299,016 392,034 146,547,471 Governmental Activity capital assets – net 229,319,661 $ (4,481,816) $ 209,178 $ 224,628,667 $ Depreciation expense for governmental activities for the year ended April 30, 2013 was charged to functions as follows: 1,853,260 $ 3,202,401 146,822 888,284 208,249 6,299,016 $ Public safety General government Highways and streets Sanitation Culture and recreation 79 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 45 (Continued) Balance Disposals Balance May 1, 2012 Additions or Transfers April 30, 2013 Business-type activities Capital assets not being depreciated: Land 459,369 $ -$ -$ 459,369 $ Total capital assets not being depreciated 459,369 - - 459,369 Capital assets being depreciated: Buildings 27,021,790 - - 27,021,790 Improvements other than buildings 40,719,772 315,652 5,187 41,030,237 Machinery and equipment 4,404,711 170,370 15,119 4,559,962 Sanitary sewers and related property 29,461,745 - - 29,461,745 Total capital assets being depreciated 101,608,018 486,022 20,306 102,073,734 Less accumulated depreciation: Buildings 9,582,547 1,003,570 - 10,586,117 Improvements other than buildings 16,880,803 979,481 2,903 17,857,381 Machinery and equipment 2,428,085 216,959 15,119 2,629,925 Sanitary sewers and related property 14,403,571 576,718 - 14,980,289 Total accumulated depreciation 43,295,006 2,776,728 18,022 46,053,712 Capital assets – net 58,772,381 $ (2,290,706) $ 2,284 $ 56,479,391 $ 80 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 46 (Continued) Balance Balance May 1, 2012 Additions Disposals April 30, 2013 Component Unit – Lake Forest Library Capital assets not being depreciated: Land 70,000 $ -$ -$ 70,000 $ Art 149,000 - - 149,000 Total capital assets not being depreciated 219,000 - - 219,000 Capital assets being depreciated: Buildings 1,180,907 - - 1,180,907 Improvements other than buildings 1,552,854 454,259 91,389 1,915,724 Machinery and equipment 3,655,234 346,368 304,535 3,697,067 Total capital assets being depreciated 6,388,995 800,627 395,924 6,793,698 Less accumulated depreciation: Buildings 584,152 23,338 - 607,490 Improvements other than buildings 703,191 134,812 91,389 746,614 Machinery and equipment 2,073,098 348,547 304,535 2,117,110 Total accumulated depreciation 3,360,441 506,697 395,924 3,471,214 Capital assets – net 3,247,554 $ 293,930 $ -$ 3,541,484 $ 81 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 47 (Continued) Note 7. Long-term Obligations The City issues debt to finance various capital projects and other construction activities. The following is a summary of the changes in long-term obligations of the City for the year ended April 30, 2013: Amounts Balance Balance due within May 1, 2012 Additions Deductions April 30, 2013 one year Governmental activities: General obligation bonds 38,580,882 $ -$ (1,377,736) $ 37,203,146 $ 1,400,949 $ Deferred amount on refunding (279,324) - 44,974 (234,350) - Premium on general obligation bonds 312,576 - (86,914) 225,662 - Discount on general obligation bonds (74,066) - 7,744 (66,322) - Total general obligation bonds 38,540,068 - (1,411,932) 37,128,136 1,400,949 Net OPEB obligation* 168,888 32,592 - 201,480 - Compensated absences** 1,727,140 2,160,559 (2,109,568) 1,778,131 100,000 Total governmental activities 40,436,096 $ 2,193,151 $ (3,521,500) $ 39,107,747 $ 1,500,949 $ Business-type activities: General obligation bonds 22,804,000 $ -$ (1,744,000) $ 21,060,000 $ 1,815,000 $ Deferred amount on refunding (1,159,862) - 186,749 (973,113) - Premium on general obligation bonds 378,800 - (64,046) 314,754 - Discount on general obligation bonds (4,225) - 4,225 - - Compensated absences 187,420 196,496 (185,500) 198,416 5,000 Total business-type activities 22,206,133 $ 196,496 $ (1,802,572) $ 20,600,057 $ 1,820,000 $ Component Unit - Lake Forest Library Capital lease 21,660 $ 96,529 $ (29,469) $ 88,720 $ 31,433 $ Net OPEB obligation* 5,606 2,764 - 8,370 - Compensated absences 170,767 181,704 (166,066) 186,405 10,000 Total component unit - Lake Forest Library 198,033 $ 280,997 $ (195,535) $ 283,495 $ 41,433 $ 1 * OPEB obligations will be liquidated by the General Fund. **Compensated absences will be liquidated by the applicable governmental funds (primarily the General, Parks and Recreation, Senior Commission and Cemetery Funds) that account for the salaries and wages for the related employees. 82 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 48 (Continued) General obligation debt payable for the City as of April 30, 2013 consists of the following: Governmental Activities: General obligation bonds: Special Service Area 25 Special Tax Bonds due in annual installments of $25,000 to $75,000 through December 15, 2022; interest at 1.95% to 2.95%, due semiannually on June 15 and December 15. Funded by Debt Service Funds property tax levies. 640,000 $ Special Service Area 26 Special Tax Bonds due in annual installments of $9,545 to $20,700 through December 15, 2022; interest at 2.50% to 3.40%, due semiannually on June 15 and December 15. Funded by Debt Service Funds property tax levies. 170,308 Special Service Area 29 Special Tax Bonds due in annual installments of $76,192 to $150,611 through December 15, 2023; interest at 2.55% to 3.65%, due semiannually on June 15 and December 15. Funded by Debt Service Funds property tax levies. 1,332,838 2008 Series General Obligation Bonds due in annual installments of $110,000 to $635,000 through December 15, 2027; interest at 3.375% to 3.875%, due semiannually on June 15 and December 15. Funded by Debt Service Funds property tax levies. 8,335,000 2009 Series General Obligation Bonds due in annual installments of $160,000 to $280,000 through December 15, 2029; interest at 2% to 4.1%, due semiannually on June 15 and December 15. Funded by Debt Service Funds property tax levies. 3,360,000 2010 A Series General Obligation Bonds due in one installment of $9,665,000 on December 15, 2015; interest at 3.00%, due semiannually on June 15 and December 15, commencing June 15, 2011. Funded by Debt Service Funds property tax levies. 9,665,000 2010 B Series General Obligation Bonds due in annual installments of $540,000 to $860,000 through December 15, 2032, commencing December 15, 2029; interest at 5.75%, due semiannually on June 15 and December 15. Funded by Debt Service Funds property tax levies. 3,000,000 2010 C Series General Obligation Bonds due in annual installments of $195,000 to $490,000 through December 15, 2029; commencing December 15, 2015; interest at 3.00% to 5.50%, due semiannually on June 15 and December 15. Funded by Debt Service Funds property tax levies.5,425,000 2011 A Series General Obligation Bonds due in annual installments of $195,000 to $345,000 through December 15, 2015; interest at 1.5% to 2%, due semiannually on June 15 and December 15. Funded by Debt Service Funds property tax levies. 880,000 2011 B Series General Obligation Bonds due in annual installments of $41,000 to $523,000 through December 15, 2023; interest at 1% to 3%, due semiannually on June 15 and December 15. Funded by Debt Service Funds property tax levies. 4,395,000 Total governmental activities 37,203,146 $ 83 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 49 (Continued) Business-type Activities General obligation and revenue bonds: Waterworks and Sewerage Fund: 2011 A Series General Obligation Bonds due in annual installments of $120,000 to $140,000 through December 15, 2021; interest at 1.5% to 3%, due semiannually on June 15 and December 15. Funded by Debt Service Funds property tax levies. 1,050,000 $ 2011 B Series General Obligation Bonds due in annual installments of $1,254,000 to $2,004,000 through December 15, 2024; interest at 2% to 3%, due semiannually on June 15 and December 15. Funded by Debt Service Funds property tax levies.19,036,500 Nonmajor Enterprise Fund: 2011 B Series General Obligation Bonds due in annual installments of $78,000 to $100,000 through December 15, 2024; interest at 4% to 4.38%, due semiannually on June 15 and December 15. Funded by Debt Service Funds property tax levies.973,500 Total Business-type Activities 21,060,000 $ Annual debt service requirements to maturity for general obligation bonds are as follows: Years Principal Interest Principal Interest 2014 1,400,949 $ 1,319,442 $ 1,815,000 $ 504,829 $ 2015 1,443,436 1,283,314 1,847,000 468,528 2016 11,283,219 1,247,811 1,877,000 432,288 2017 1,568,336 914,279 1,902,000 395,398 2018 1,623,796 870,402 1,952,000 357,358 2019-2023 8,864,799 3,545,241 10,320,000 1,033,151 2024-2028 7,008,611 1,992,172 1,347,000 40,410 2029-2033 4,010,000 697,330 - - Total 37,203,146 $ 11,869,991 $ 21,060,000 $ 3,231,962 $ Governmental activities Business-type activities Note 8. Capital Lease The City of Lake Forest Public Library has entered into a lease agreement as lessee for financing technology equipment to the Library. The lease is due in installments through its maturity on February 1, 2016 at an annual interest rate of 1.0%. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the inception date. 84 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 50 (Continued) The assets acquired through the capital lease are as follows: Lake Forest Library Assets: Improvements other than buildings 96,529$ Less: accumulated depreciation (8,044) Total 88,485$ The future minimum lease obligations and the net present value of these minimum lease payments as of April 30, 2013 were as follows: Lake Forest Year Ending April 30 Library 2014 32,176$ 2015 32,176 2016 25,651 Less: Amount representing interest (1,283) Present value of minimum lease payments 88,720$ Note 9. Retirement Fund Commitments Illinois Municipal Retirement Fund (a) Plan Description The City contributes to the Illinois Municipal Retirement Fund (IMRF), a defined benefit pension plan, which provides retirement, disability, annual cost of living adjustments, and death benefits to plan members and beneficiaries. IMRF is an agent multiple-employer public retirement system that acts as a common investment and administrative agent for local governments and school districts in Illinois. All employees, except those covered by the police and fire pension plans, hired in positions that meet or exceed the prescribed annual hourly standard, must be enrolled in IMRF as participating members. Benefit provisions are established by statute and may only be changed by the General Assembly of the State of Illinois. IMRF issues a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained on-line at www.imrf.org or by writing to the Illinois Municipal Retirement Fund, 2211 York Road, Suite 500, Oak Brook, Illinois 60523. 85 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 51 (Continued) (b) Funding Policy As set by statute, employer regular plan members are required to contribute 4.50 percent of their annual covered salary. The statutes require employers to contribute the amount necessary, in addition to member contributions, to finance the retirement coverage of its own employees. The employer contribution rates for calendar year 2013 and 2012 were 13.36 percent and 11.88 percent of annual covered payroll, respectively. The City also contributes for disability benefits, death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disability and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rate is set by statute. (c) Annual Pension Cost The City’s annual pension cost of $1,895,967 for the regular plan was equal to the City’s required and actual contributions. (d) Trend Information Fiscal Annual Percentage Year pension of APC Net pension ending cost (APC) contributed obligation 2013 1,895,967 $ 100 %-$ 2012 1,893,946 100 - 2011 1,944,067 100 - The required contributions for 2013 and 2012 were determined as part of the December 31, 2010 actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions included (a) 7.5 percent investment rate of return (net of administrative and direct investment expenses), (b) projected salary increases of 4.00% a year, attributable to inflation, (c) additional projected salary increases ranging from 0.4% to 10% per year depending on age and service, attributable to seniority/merit, and (d) post retirement benefit increases of 3% annually. The actuarial value of the City’s regular plan assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a five-year period with a 20% corridor between the actuarial and market value of assets. The plan’s unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open 30 year basis. (e) Funded Status and Funding Progress As of December 31, 2012, the most recent actuarial valuation date, the regular plan was 64.76 percent funded. The actuarial liability for benefits was $42,513,765 and the actuarial value of assets was $27,530,649 resulting in an unfunded actuarial accrued liability (UAAL) of $14,983,116. The covered payroll (annual payroll of active employees covered by the plan) was $15,490,621 and the ratio of the UAAL to the covered payroll was 97 percent. The schedule of funding progress, presented as RSI following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. 86 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 52 (Continued) Police Pension and Firefighters’ Pension Plans (a) Plan Descriptions The City contributes to two single-employer defined benefit pension plans: the Police Pension Plan and the Firefighters’ Pension Plan (Plans). Each plan provides retirement, disability, and death benefits, and annual cost-of-living adjustments to plan members and beneficiaries. Sworn Police and Fire personnel are covered by the Plans. Although these are single-employer pension plans, the defined benefits and employee and employer contribution levels are governed by Illinois Compiled Statutes and may be amended only by the Illinois legislature. The City accounts for the Plans as Pension Trust Funds. The City does not, however, separately issue financial reports for the Plans. Membership of each plan consisted of the following at April 30, 2013: Police Firefighters' Pension Pension Retirees and beneficiaries currently receiving benefits 33 32 Terminated employees entitled to but not yet receiving benefits 4 3 Active plan members 36 33 Total 73 68 (b) Summary of Significant Accounting Policies and Plan Asset Matters Basis of Accounting – The financial statements are prepared using the accrual basis of accounting. Employee and employer contributions are recognized when due, pursuant to formal commitments, as well as statutory or contractual requirements. Benefits and refunds are recognized when due and payable in accordance with the terms of each plan. Administrative costs are financed through investment earnings. Method Used to Value Investments – Investments are reported at fair value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national exchange are valued at the last reported sales price. The fair value of real estate investments is based on independent appraisals. Investments that do not have an established market are reported at estimated fair value. Significant Investments – The Police Pension Fund has $1,372,651 invested in FHLB securities, $1,756,159 invested in FHLMC securities, and $2,902,360 invested in FNMA securities which represents 5.7%, 7.3% and 12.0%, respectively, of plan net position at April 30, 2013. The Firefighters’ Pension Fund has $1,862,768 invested in GNMA securities and $1,945,259 invested in FNMA securities which represents 6.5% and 6.8%, respectively, of plan net position at April 30, 2013. (c) Funding Policy and Annual Pension Cost Covered police pension eligible employees are required to contribute 9.91% of their base salary to the Police Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The City is required to contribute the remaining amounts necessary to finance the plan as actuarially determined by an enrolled actuary. 87 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 53 (Continued) By the year 2033, the City’s contributions must accumulate to the point where the past service cost for the Police Pension Plan is fully funded. Actuarial valuations are performed annually. Covered firefighters’ pension eligible employees are required to contribute 9.455% of their salary to the Firefighters’ Pension Plan. If an employee leaves covered employment with less than 20 years of service, accumulated employee contributions may be refunded without accumulated interest. The City is required to contribute the remaining amounts necessary to finance the plan as actuarially determined by an enrolled actuary. By the year 2033, the City’s contributions must accumulate to the point where the past service cost for the Firefighters’ Pension Plan is fully funded. Actuarial valuations are performed annually. The City’s annual pension cost and net pension asset for the Police and Firefighters’ Pension Plans for fiscal year 2013 were as follows: Police Firefighters' Pension Pension Annual required contribution 1,375,906 $ 894,551 $ Interest on net pension obligation (62,716) (36,191) Adjustment to annual required contribution 48,642 28,069 Annual pension cost 1,361,832 886,429 Contributions made 1,502,075 1,026,345 Increase in net pension asset 140,243 139,916 Net pension asset at April 30, 2012 836,209 482,543 Net pension asset at April 30, 2013 976,452 $ 622,459 $ The net pension assets are reported by the City in the government-wide Statement of Net Position. Other related information is as follows: Police Pension Firefighters' Pension Contribution rates - City 47.38%33.65% Contribution rates - plan members 9.91%9.46% Actuarial valuation date 4/30/13 4/30/13 Actuarial cost method Entry Age Entry Age Amortization method Level Percentage Level Percentage of pay, closed of pay, closed Remaining amortization period 20 years 20 years Asset valuation method Market Market Actuarial assumptions: Investment rate of return 7.50%7.50% Projected salary increases*5.50%5.50% *Includes inflation at 3.00%3.00% Cost-of-living adjustments 3.00% per year 3.00% per year 88 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 54 (Continued) (d) Plan Financial Statements Following are condensed financial statements for the Police and Firefighters’ Pension Plans as of and for the year ended April 30, 2013: Police Firefighters' Pension Pension Assets: Cash and cash equivalents 180,091 $ 2,309,347 $ Investments 23,913,765 26,477,372 Other receivables 104,700 105,326 Prepaid expenses 6,891 5,090 Total assets 24,205,447 28,897,135 Liabilities: Accounts payable 1,836 4,790 Net position: Held in trust for pension benefits 24,203,611 $ 28,892,345 $ Additions: Employer contributions 1,502,075 $ 1,026,345 $ Employee contributions 322,609 288,560 Interest income 503,586 804,482 Net appreciation in fair value of investments 1,715,942 1,491,548 Less investment expenses (127,343) (80,450) Total additions 3,916,869 3,530,485 Deductions: Pension benefits and refunds 1,838,832 1,531,361 Administrative expenses 5,800 5,800 Total deductions 1,844,632 1,537,161 Changes in net position 2,072,237 1,993,324 Net position held in trust at beginning of year 22,131,374 26,899,021 Net position held in trust at end of year 24,203,611 $ 28,892,345 $ Statement of Fiduciary Net Position Statement of Changes in Fiduciary Net Position 89 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 55 (Continued) (e) Three Year Trend Information Annual Net Year Pension Pension Ending Cost (APC)Asset Police Pension: 4/30/13 1,361,832 $ 110.3 % 976,452 $ 4/30/12 1,360,349 111.4 836,209 4/30/11 1,390,988 101.6 681,484 Firefighters' Pension: 4/30/13 886,429 $ 115.8 % 622,459 $ 4/30/12 855,082 115.0 482,543 4/30/11 948,412 101.3 354,327 Contributed of APC Percentage (f) Funded Status and Funding Progress – Pension Trust Funds The funded status of the Police and Firefighters’ Pension Plans as of April 30, 2013, the most recent actuarial valuation date, is as follows: (1)(2)(2)–(1) Actuarial Actuarial Accrued Unfunded (1)/(2)(3) Value of Liability (AAL) AAL Funded Covered Assets Entry Age (UAAL) Ratio Payroll Police 24,203,611 $ 42,192,380 $ 17,988,769 $ 57.4 % 3,170,518 $ 567.4 % Firefighters' 28,892,345 35,706,156 6,813,811 80.9 3,049,732 223.4 Payroll ((2-1)/3) UAAL as a Percentage of Covered The schedule of funding progress, presented as required supplementary information (RSI) following the notes to the financial statements, present multi-year trend information about whether the actuarial values of plan assets are increasing or decreasing over time relative to the AAL’s for benefits. The projection of benefits for financial reporting does not explicitly incorporate the potential effects of legal or contractual funding limitations. Note 10. Other Post Employment Benefits (OPEB) (a) Plan Description In addition to providing the pension benefits described in Note 9, the City and Library (hereinafter City) provide post-employment health care benefits (OPEB) for retired employees. Hereinafter, the medical and dental plan benefits offered are referred to as the “Plan.” The Plan offers several medical and dental insurance benefit options to eligible retirees and their dependents. The benefits, benefit levels, employee contributions and employer contributions are governed by the City Council and can only be amended by the City Council. The Plan is not accounted for as a trust fund and an irrevocable trust has not been established. The City does not issue a Plan financial report. 90 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 56 (Continued) (b) Funding Policy The contribution requirements of plan members and the City are established and may be amended by the City Council and are detailed in the various plan benefit booklets provided to employees. The required contribution is based on projected pay-as-you-go financing requirements. For fiscal year 2013, the City contributed $63,488, representing current premiums. (c) Annual OPEB Cost and Net OPEB Obligation The City’s and Library’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the net OPEB obligation to the Plan: City Library Annual required contribution (ARC) 94,954 $ 2,727 $ Interest on net OPEB obligation 6,756 224 Adjustment to annual required contribution (5,630) (187) Annual OPEB cost 96,080 2,764 Contribution made (63,488) - Increase in net OPEB obligation 32,592 2,764 Net OPEB obligation beginning of year 168,888 5,606 Net OPEB obligation end of year 201,480 $ 8,370 $ The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2013 was as follows: Percentage Annual of Annual Fiscal Year OPEB OPEB Cost Net OPEB Ending Cost Contributed Obligation City: 04/30/2013 96,080 $ 66.1% 201,480 $ 04/30/2012 98,050 64.8% 168,888 04/30/2011 89,201 71.2% 134,326 Library: 04/30/2013 2,764 $ 0.0% 8,370 $ 04/30/2012 2,863 0.0% 5,606 04/30/2011 2,743 0.0% 2,743 91 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 57 (Continued) (d) Funded Status and Funding Progress As of April 30, 2013 (latest actuarial valuation date), the City’s plan was 100% unfunded. The actuarial accrued liability for benefits was $2,363,491, and the actuarial value of assets was $0 (zero), resulting in an unfunded actuarial accrued liability (UAAL) of $2,363,491. The covered payroll (annual payroll of active employees covered by the plan) was $16,930,261, and the ratio of the UAAL to the covered payroll was 13.96 percent. As of the same date, the Library’s plan was 100% unfunded. The actuarial accrued liability for benefits was $34,113, and the actuarial value of assets was $0 (zero), resulting in an unfunded actuarial accrued liability (UAAL) of $34,113. The covered payroll (annual payroll of active employees covered by the plan) was $1,306,979, and the ratio of the UAAL to the covered payroll was 2.61 percent. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. (e) Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the April 30, 2013 actuarial valuation, the entry age actuarial cost method was used. The actuarial assumptions included a 4.0 percent investment rate of return (net of administrative expenses), which is a blended rate of the expected long-term investment returns on plan assets and on the employer's own investments calculated based on the funded level of the plan at the valuation date, and an annual healthcare cost trend rate of 8 percent initially, reduced by decrements to an ultimate rate of 6 percent ultimately. Both rates included a 3.0 percent inflation assumption. The actuarial value of assets was determined using market value. The UAAL is being amortized as a level percentage of projected payroll on an open basis. The remaining amortization period at April 30, 2013 was 30 years. 92 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 58 (Continued) Note 11. Joint Ventures A summary of the City’s joint ventures is as follows: (a) Solid Waste Agency of Lake County The City is a member of the Solid Waste Agency of Lake County, Illinois (the Agency), a municipal joint action agency composed of 41 municipalities, Great Lakes Naval Training Center and Lake County. The Agency was formed in 1991. The purpose of the Agency is to implement a regional approach to solid waste management which addresses the economic, political and environmental issues in Lake County. The Agency is governed by a Board of Directors consisting of one official elected by each member. Each director has one vote. The Board of Directors determines the general policy of the Agency, makes all appropriations, approves contracts for solid waste disposal; adopts resolutions providing for the issuance of debt by the Agency; adopts by-laws, rules, and regulations; and exercises such powers and performs such duties as may be prescribed in the Agency agreement or the by-laws. The Executive Committee of the Agency consists of nine members of the Board of Directors elected by the Board. Each member is entitled to one vote on the committee. The Executive Committee may take any action not specifically reserved on the Board of Directors by the Act, the Agency agreement, or the by- laws. The City has no explicit and measurable equity interest in the Agency, although there does exist a residual interest in the Agency’s assets upon dissolution of the joint venture. The City has an ongoing financial responsibility for its share of the Agency’s liabilities. Each participant is liable for their share of any of the Agency’s contracts entered into while bound by the intergovernmental agreement until those contracts are paid off. To obtain the Agency’s financial statements, contact the Solid Waste Agency of Lake County, Illinois at 1311 N. Estes Street, Gurnee, Illinois 60031. (b) Northern Suburban Special Recreation Association (NSSRA) The City is a member of the Northern Suburban Special Recreation Association (NSSRA), which was organized by ten organizations in order to provide special recreation programs to the physically and mentally handicapped within their districts and to share the expenses of such programs on a cooperative basis. Each member’s 1999 contribution was determined based upon the ratio of the members’ assessed valuations. The NSSRA is governed by a Board of Directors which consists of one representative from each participating organization. Each Director has an equal vote. The representatives of NSSRA are appointed by the Board of Directors. The Board of Directors is the governing body of the NSSRA and is responsible for establishing all major policies and changes therein and for approving all budgets, capital outlay, programming, and master plans. The City has no explicit and measurable equity interest in the NSSRA, although there does exist a residual interest in the NSSRA’s assets upon dissolution of the joint venture. The City has an ongoing financial responsibility for its share of the NSSRA’s liabilities. Each participant is liable for their share of any of the NSSRA’s contracts entered into while bound by the intergovernmental agreement until those contracts are paid off. To obtain NSSRA’s financial statements, contact Northern Suburban Special Recreation Association at 3105 MacArthur Blvd., Northbrook, Illinois 60062. 93 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 59 (Continued) Note 12. Risk Management The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City accounts for its risk of loss in the Liability Insurance Fund through payments to the Intergovernmental Risk Management Agency. (a) Intergovernmental Risk Management Agency (IRMA) The City participates in the Intergovernmental Risk Management Agency (IRMA). IRMA is an organization of municipalities and special districts in Northeastern Illinois which have formed an association under the Illinois Intergovernmental Cooperation Statute to pool their risk management needs. The agency administers a mix of self-insurance and commercial insurance coverages; property/casualty and workers’ compensation claim administration/ litigation management services; unemployment claim administration; extensive risk management/loss control consulting and training programs; and a risk information system and financial reporting service for its members. The City’s payments to IRMA are displayed on the financial statements as expenditures/expenses in appropriate funds. The City assumes the first $25,000 of each occurrence, and IRMA has a mix of self- insurance and commercial insurance at various amounts above that level. Each member appoints one delegate, along with an alternate delegate, to represent the member on the Board of Directors. The government does not exercise any control over the activities of IRMA beyond its representation on the Board of Directors. Initial contributions are determined each year based on the individual member’s eligible revenue as defined in the by-laws of IRMA and experience modification factors based on past member loss experience. Members have a contractual obligation to fund any deficit of IRMA attributable to a membership year during which they were a member. Supplemental contributions may be required to fund these deficits. Beginning of Claims and End of Fiscal Year Changes in Claim Fiscal Year Liability Estimates Payments Liability 2011-2012 79,314 $ 236,005 $ 251,533 $ 63,786 $ 2012-2013 63,786 376,262 232,401 207,647 (b) City of Lake Forest Medical and Dental Plan The City established the City of Lake Forest Medical and Dental Plan, a self-insurance plan providing health insurance for all employees of the City, effective January 1, 2000. Administration of the Plan is provided by Professional Benefit Administrators, Inc. (an outside agency). Liabilities are reported when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. An excess coverage insurance policy covers total claims in excess of $100,000 per participant in a plan year. Liabilities include all amounts for claims, including incremental costs that have been incurred but not reported (IBNR) and are reported in the Self Insurance Fund (internal service fund). 94 CITY OF LAKE FOREST, ILLINOIS Notes to Financial Statements April 30, 2013 60 (Concluded) Changes in the balances of claims liabilities for the years ended April 30, 2013 and 2012 are as follows: Beginning of End of Fiscal Year Changes in Claim Fiscal Year Liability Estimates Payments Liability 2011-2012 516,623 $ 3,681,121 $ 3,725,959 $ 471,785 $ 2012-2013 471,785 3,878,466 3,989,592 360,659 The City has not had significant reductions in insurance coverage during the year nor did settlements exceed insurance coverage in any of the last three years. Note 13. Commitments and Contingencies As of April 30, 2013 management knows of no claim, asserted or unasserted, which if asserted and paid, would have a materially adverse effect on the financial position of the various funds of the City. The City has outstanding construction contracts with contractors totaling $132,238 at April 30, 2013. Note 14. Subsequent Event On September 16, 2013 the City Council approved an ordinance authorizing the issuance of General Obligation Refunding Bonds, Series 2013 for $9,715,000. The City’s Aaa Moody’s rating was affirmed. The proceeds of the Bonds will be used for the purpose of refunding all of the General Obligation Bonds, Series 2010A. The Series 2010A Bonds were originally issued to provide partial financing for the construction of the Municipal Services facility. 95 REQUIRED SUPPLEMENTARY INFORMATION 96 61 CITY OF LAKE FOREST, ILLINOIS Exhibit B-1 General Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Revenues: Taxes: Property 15,761,272 $ 15,720,048 $ (41,224) $ Other 8,786,763 9,437,860 651,097 Grants and contributions - 1,526 1,526 Charges for services 2,632,084 2,797,993 165,909 Licenses and permits 2,253,345 2,450,194 196,849 Fines and forfeitures 362,670 368,941 6,271 Investment income 57,300 53,506 (3,794) Miscellaneous revenue 1,056,512 1,202,752 146,240 Total revenues 30,909,946 32,032,820 1,122,874 Expenditures: Current: General government 9,700,027 10,804,352 (1,104,325) Highways and streets 2,355,932 2,044,225 311,707 Sanitation 2,285,728 2,193,091 92,637 Public safety 13,991,615 13,552,368 439,247 Contingency 3,085,731 - 3,085,731 Total expenditures 31,419,033 28,594,036 2,824,997 Excess (deficiency) of revenues over expenditures (509,087) 3,438,784 3,947,871 Other financing sources (uses): Transfers in - 107,737 107,737 Transfers out (2,524,004) (2,510,942) 13,062 Total other financing sources and uses (2,524,004) (2,403,205) 120,799 Net change in fund balance (3,033,091) $ 1,035,579 4,068,670 $ Fund balance – beginning of year 13,718,013 Fund balance – end of year 14,753,592 $ Required Supplementary Information Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual 97 62 CITY OF LAKE FOREST, ILLINOIS Exhibit B-2 Parks and Recreation Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Revenues: Taxes: Property 4,937,972 $ 4,966,513 $ 28,541 $ Other 40,745 41,334 589 Grants and contributions 113,985 151,442 37,457 Charges for services 3,178,987 2,988,702 (190,285) Investment income 17,325 21,940 4,615 Other 2,050 8,225 6,175 Total revenues 8,291,064 8,178,156 (112,908) Expenditures: Current: Culture and recreation 8,389,439 8,660,341 (270,902) Contingency 880,244 - 880,244 Capital outlay 252,000 247,233 4,767 Total expenditures 9,521,683 8,907,574 614,109 Excess (deficiency) of revenues over expenditures (1,230,619) (729,418) 501,201 Other financing sources (uses): 296,616 299,970 3,354 - (78,000) (78,000) Total other financing sources (uses)296,616 221,970 (74,646) Net change in fund balance (934,003) $ (507,448) 426,555 $ Fund balance – beginning of year 2,978,916 Fund balance – end of year 2,471,468 $ Required Supplementary Information Transfers in Transfers out 98 63 Exhibit B-3 CITY OF LAKE FOREST, ILLINOIS Required Supplementary Information – Schedules of Funding Progress Last Six Fiscal Years Unfunded Actuarial (assets in Actuarial accrued excess of) Percentage Actuarial value of liability (AAL) AAL Funded Covered of covered valuation assets Entry Age (UAAL) ratio payroll payroll date (a) (b) (b-a) (a/b) (c) ((b-a)/c) Illinois Municipal Retirement Fund (1): 12/31/2012 27,530,649 $ 42,513,765 $ 14,983,116 $ 64.8 % 15,490,621 $ 96.7 % 12/31/2011 27,857,081 44,405,755 16,548,674 62.7 16,261,976 101.8 12/31/2010 39,595,430 50,163,288 10,567,858 78.9 16,762,932 63.0 12/31/2009 38,670,158 49,164,282 10,494,124 78.7 17,499,712 60.0 12/31/2008 35,762,935 46,155,124 10,392,189 77.5 17,062,328 60.9 12/31/2007 41,096,546 42,354,583 1,258,037 97.0 16,049,536 7.8 Police Pension Plan: 04/30/2013 24,203,611 42,192,380 17,988,769 57.4 3,170,518 567.4 04/30/2012 22,131,376 39,409,677 17,278,301 56.2 3,359,679 514.3 04/30/2010 19,379,115 36,428,208 17,049,093 53.2 3,322,493 513.1 04/30/2009 16,793,784 35,110,838 18,317,054 47.8 3,283,760 557.8 04/30/2008 19,004,088 32,815,313 13,811,225 57.9 3,162,441 436.7 04/30/2007 18,656,644 30,916,934 12,260,290 60.3 3,041,336 403.1 Firefighters' Pension Plan: 04/30/2013 28,892,345 35,706,156 6,813,811 80.9 3,049,732 223.4 04/30/2012 26,899,022 33,789,869 6,890,847 79.6 2,941,767 234.2 04/30/2010 23,612,253 30,523,996 6,911,743 77.4 2,644,320 261.4 04/30/2009 21,579,941 29,497,144 7,917,203 73.2 2,926,591 270.5 04/30/2008 22,913,950 27,739,010 4,825,060 82.6 2,855,889 169.0 04/30/2007 22,052,150 25,853,195 3,801,045 85.3 2,626,922 144.7 (1) Includes City and Library employees 99 64 Exhibit B-4 CITY OF LAKE FOREST, ILLINOIS Required Supplementary Information – Schedules of Employer Contributions Last Six Fiscal Years Police Pension Plan Annual Fiscal Employer required Percentage Year Contributions contribution contributed 4/30/13 1,502,075 $ 1,375,906 $ 109.2 % 4/30/12 1,515,074 1,372,431 110.4 4/30/11 1,412,730 1,405,652 100.5 4/30/10 1,128,592 1,128,050 100.0 4/30/09 1,038,121 1,025,521 101.2 4/30/08 928,718 917,388 101.2 Firefighters' Pension Plan Annual Fiscal Employer required Percentage Year Contributions contribution contributed 4/30/13 1,026,345 $ 894,551 $ 114.7 % 4/30/12 983,298 862,452 114.0 4/30/11 960,850 954,946 100.6 4/30/10 810,129 761,978 106.3 4/30/09 701,472 662,323 105.9 4/30/08 610,671 608,241 100.4 100 65 Exhibit B-5 CITY OF LAKE FOREST, ILLINOIS Required Supplementary Information Other Post-Employment Benefits Schedule of Funding Progress - City UAAL Unfunded as a Actuarial Actuarial Percentage Value Actuarial Accrued of Annual Actuarial of Accrued Liability Funded Covered Covered Valuation Assets Liability (UAAL) Ratio Payroll Payroll Date (a) (b) (b) - (a) (a)/(b) (c) ((b - a) / c) 04/30/2013 -$ 2,363,491 $ 2,363,491 $ -$ % 16,930,261 $ 13.96 % 04/30/2011 - 1,495,528 1,495,528 - 19,037,921 7.86 04/30/2010 - 1,552,739 1,552,739 - 19,542,175 7.95 04/30/2009 - 1,552,739 1,552,739 - 19,542,175 7.95 Schedule of Funding Progress - Library UAAL Unfunded as a Actuarial Actuarial Percentage Value Actuarial Accrued of Annual Actuarial of Accrued Liability Funded Covered Covered Valuation Assets Liability (UAAL) Ratio Payroll Payroll Date (a) (b) (b) - (a) (a)/(b) (c) ((b - a) / c) 04/30/2013 -$ 34,113 $ 34,113 $ -$ % 1,306,979 $ 2.61 % 04/30/2011 - 22,590 22,590 - 1,246,633 1.81 Schedule of Employer Contributions - City Actuarial Valuation Employer Required Percentage Date Contributions Contribution Contributed 04/30/2013 63,488 $ 94,954 $ 66.9 % 04/30/2012 63,488 94,954 66.9 04/30/2011 63,488 89,201 71.2 04/30/2010 22,001 87,986 25.0 04/30/2009 45,358 87,986 51.6 Schedule of Employer Contributions - Library Actuarial Valuation Employer Required Percentage Date Contributions Contribution Contributed 04/30/2013 -$ 2,727 $ -% 04/30/2012 - 2,727 - 04/30/2011 - 2,743 - Information is presented for as many years as is available The City implemented GASB Statement No. 45 in fiscal year 2009. 101 CITY OF LAKE FOREST, ILLINOIS Note to Required Supplementary Information April 30, 2013 66 Note 1. Budgetary Basis of Accounting Budgets for the General and major special revenue fund are adopted on a basis of accounting consistent with accounting principles generally accepted in the United States of America (GAAP). 102 COMBINING FINANCIAL STATEMENTS AND OTHER SCHEDULES 103 NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Asset Forfeiture Fund The Asset Forfeiture Fund accounts for revenues received from drug arrests (convicted property). Used solely for drug prevention programs administrated by the Lake Forest Police Department. Foreign Fire Insurance Tax Fund The Foreign Fire Insurance Tax Fund accounts for revenues received from the 2% tax on fire insurance companies. Administered by members of the Fire Department to benefit the Fire Department. Emergency Telephone Fund The Emergency Telephone Fund accounts for the operations and maintenance of the emergency 911 telephone system. Financing is provided by a specific monthly surcharge on customer telephone bills. Parks and Public Land Fund The Parks and Public Land Fund accounts for the revenues received from grants, contributions and the collection of open space fees. Such revenues are to be used to purchase or improve land. Motor Fuel Tax Fund The Motor Fuel Tax Fund accounts for the revenues received from the State of Illinois for the local share of the motor fuel tax collections. General Cemetery Fund The General Cemetery Fund accounts for the operations of the cemetery commission. Financing is provided by the proceeds from cemetery lot sales, user charges, and donations. Senior Resources Commission Fund The Senior Resources Commission Fund accounts for gifts, activity fees and investments used to finance senior citizens’ programs and activities. Housing Trust Fund The Housing Trust Fund accounts for half of the revenues received from the demolition tax. Revenues will be used for affordable housing projects in Lake Forest. Elawa Farm Fund The Elawa Farm Fund accounts for the grants and activity fees used for the operating expenses of this historic farm complex. 104 Debt Service Fund Debt Service Fund This fund accounts for the principal and interest currently due on general obligation bonds. Capital Projects Funds West Lake Forest TIF District Construction Fund The West Lake Forest TIF District Construction Fund accounts for tax increment revenues to be used for improvements in the TIF district. Capital Improvements Fund The Capital Improvements Fund accounts for revenues to be used to fund city building and infrastructure projects. Route 60 Bridge Improvements Fund The Route 60 Bridge Improvements Fund accounts for the pledged funds from various corporations and local governments to be used for the widening of the Route 60 Bridge over I-94. Route 60 Intersection Improvements Fund The Route 60 Intersection Improvements Fund accounts for the monies received from corporations and state and federal grants to be used for the improvements to be made to the intersection at Route 60 and Field Drive. Route 60/Fitzmorris Improvements Fund The Route 60/Fitzmorris Improvements Fund accounts for the funds to be used to construct permanent signals and intersection improvements at Field Court and Route 60. 2010 Bond Construction Fund The 2010 Bond Construction Fund accounts for the proceeds of the 2010 general obligation bonds to be used to fund certain capital improvements. 105 67 CITY OF LAKE FOREST, ILLINOIS Combining Balance Sheet Nonmajor Governmental Funds April 30, 2013 Asset Foreign Fire Emergency Parks and Forfeiture Insurance Telephone Public Land Assets Fund Tax Fund Fund Fund Cash and cash equivalents 88,373 $ 8,335 $ 170,662 $ 412,995 $ Investments - 163,911 - - Receivables (net of allowance for uncollectibles): Property taxes - - - - Accounts 10,608 - - - Other - - 55,385 225,000 Total receivables 10,608 - 55,385 225,000 Due from other governments - - - - Due from other funds - - - - Due from fiduciary funds - - - - Prepaids - - 43,333 - Total assets 98,981 $ 172,246 $ 269,380 $ 637,995 $ Liabilities and Fund Balances Liabilities: Accounts payable -$ -$ 2,585 $ -$ Accrued liabilities - - 1,505 - Due to other funds - - - - Retainage payable - - - - Deposits - - - - Deferred revenue: Property taxes - - - - Other - - - 225,000 Total Liabilities - - 4,090 225,000 Fund balances: Nonspendable - - 43,333 - Restricted: Culture and recreation - - - 412,995 Highways and streets - - - - Public safety 98,981 172,246 221,957 - Cemetery purposes - - - - Affordable housing - - - - Capital projects - - - - Debt service - - - - Assigned Capital projects - - - - Total fund balances 98,981 172,246 265,290 412,995 Total liabilities and fund balances 98,981 $ 172,246 $ 269,380 $ 637,995 $ Special Revenue Funds 106 68 Debt Service Motor Senior Funds Fuel General Resources Housing Debt Tax Cemetery Commission Trust Elawa Farm Service Fund Fund Fund Fund Fund Fund 769,624 $ 641,718 $ 119,209 $ 775,794 $ 170,121 $ 2,415,682 $ - 3,385,333 - - - - - - - - - 1,907,401 - - - - 2,311 - - 1,000 22,078 - - - - 1,000 22,078 - 2,311 1,907,401 33,322 - - - - - - - - - - - - 84,677 - - - - - - - - - - 802,946 $ 4,112,728 $ 141,287 $ 775,794 $ 172,432 $ 4,323,083 $ -$ 6,079 $ 32,192 $ 10,000 $ 3,370 $ -$ - 5,268 6,144 - - - - - - - - 8,408 - - - - - - - - - - - - - - - - - 1,907,401 - - - - - - - 11,347 38,336 10,000 3,370 1,915,809 - - - - - - - - 102,951 - 169,062 - 802,946 - - - - - - - - - - - - 4,101,381 - - - - - - - 765,794 - - - - - - - - - - - - - 2,407,274 - - - - - - 802,946 4,101,381 102,951 765,794 169,062 2,407,274 802,946 $ 4,112,728 $ 141,287 $ 775,794 $ 172,432 $ 4,323,083 $ (Continued) Exhibit C-1 Special Revenue Funds 107 69 Route 60 Capital Bridge Improvements Improvements Assets Fund Fund Cash and cash equivalents 3,945,278 $ 1,028,104 $ Investments - - Receivables ( net of allowance for uncollectibles): Property taxes 9,564 - Accounts 288,624 - Other - - Total receivables 298,188 - Due from other governments - - Due from other funds - - Due from fiduciary funds - - Prepaids - - Total assets 4,243,466 $ 1,028,104 $ Liabilities and Fund Balances Liabilities: Accounts payable 86,626 $ -$ Accrued liabilities 504 - Due to other funds - - Retainage payable - - Deposits 10,000 - Deferred revenue: Property taxes 9,564 - Other 258,624 - Total Liabilities 365,318 - Fund balances: Nonspendable - - Restricted: Culture and recreation - - Highways and streets - - Public safety - - Cemetery purposes - - Affordable housing - - Capital projects 3,878,148 - Debt service - - Assigned Capital projects - 1,028,104 Total fund balances 3,878,148 1,028,104 Total liabilities and fund balances 4,243,466 $ 1,028,104 $ Combining Balance Sheet Nonmajor Governmental Funds April 30, 2013 CITY OF LAKE FOREST, ILLINOIS Capital Projects Funds 108 70 Route 60 Route 60 Total Intersection Fitzmorris Nonmajor Improvements Improvements Governmental Fund Fund Funds 550,354 $ 20,361 $ 11,116,610 $ - - 3,549,244 - - 1,916,965 - - 301,543 - - 303,463 - - 2,521,971 - - 33,322 - - - - - 84,677 - - 43,333 550,354 $ 20,361 $ 17,349,157 $ -$ -$ 140,852 $ - - 13,421 - - 8,408 - - - - - 10,000 - - 1,916,965 - - 483,624 - - 2,573,270 - - 43,333 - - 685,008 - - 802,946 - - 493,184 - - 4,101,381 - - 765,794 - - 3,878,148 - - 2,407,274 550,354 20,361 1,598,819 550,354 20,361 14,775,887 550,354 $ 20,361 $ 17,349,157 $ Exhibit C-1 (Cont.) Capital Projects Funds 109 71 CITY OF LAKE FOREST, ILLINOIS Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended April 30, 2013 Asset Foreign Fire Emergency Parks and Forfeiture Insurance Telephone Public Land Fund Tax Fund Fund Fund Revenues: Taxes: Property -$ -$ -$ -$ Other - - - - Intergovernmental revenues 26,108 - - - Grants and contributions - - - 25,000 Charges for services - 118,977 286,247 59,071 Investment income 369 119 838 1,814 Miscellaneous revenue - - - - Total revenues 26,477 119,096 287,085 85,885 Expenditures: Current: General government - - - - Culture and recreation - - - - Public safety - 57,849 216,515 - Capital outlay - - 64,800 30,000 Debt service: Principal - - - - Interest - - - - Total expenditures - 57,849 281,315 30,000 Excess (deficiency) of revenues over expenditures 26,477 61,247 5,770 55,885 Proceeds from sales of capital assets - - - - Transfers in - - - - Transfers out - - - - Total other financing sources and uses - - - - Net change in fund balances 26,477 61,247 5,770 55,885 Fund balances – beginning of year 72,504 110,999 259,520 357,110 Fund balances – end of year 98,981 $ 172,246 $ 265,290 $ 412,995 $ Other financing sources (uses): Special Revenue Funds 110 72 Exhibit C-2 Debt Service Motor Senior Funds Fuel General Resources Housing Debt Tax Cemetery Commission Trust Elawa Farm Service Fund Fund Fund Fund Fund Fund -$ -$ -$ -$ -$ 1,965,571 $ - - - 36,000 - - 586,249 - - - - - - - 171,224 - 24,001 168,384 - 650,391 170,193 - 106,639 - 2,428 332,328 518 3,724 535 12,861 - 14,105 - - - - 588,677 996,824 341,935 39,724 131,175 2,146,816 - 502,323 - 126,066 - 26,767 - - 575,040 - 47,314 - - - - - - - 71,261 - - - - - - 135,000 - - - 1,242,736 - 7,600 - - - 1,384,742 71,261 644,923 575,040 126,066 47,314 2,654,245 517,416 351,901 (233,105) (86,342) 83,861 (507,429) - - - - - - - - 213,388 - - 598,484 - - - - - - - - 213,388 - - 598,484 517,416 351,901 (19,717) (86,342) 83,861 91,055 285,530 3,749,480 122,668 852,136 85,201 2,316,219 802,946 $ 4,101,381 $ 102,951 $ 765,794 $ 169,062 $ 2,407,274 $ (Continued) Special Revenue Funds 111 73 For the Year Ended April 30, 2013 West Lake Forest TIF Route 60 District Capital Bridge Construction Improvements Improvements Fund Fund Fund Revenues: Taxes: Property 2,389,515 $ 9,764 $ -$ Other - 1,239,113 - Intergovernmental revenues - - - Grants and contributions - 648,800 - Charges for services - 141,460 - Investment income 7,978 16,199 4,643 Miscellaneous revenue - - - Total revenues 2,397,493 2,055,336 4,643 Expenditures: Current: General government 2,620,554 162,706 - Culture and recreation - - - Public safety - - - Capital outlay 679,313 3,441,940 - Debt service: Principal - - - Interest - - - Total expenditures 3,299,867 3,604,646 - Excess (deficiency) of revenues over expenditures (902,374) (1,549,310) 4,643 Other financing sources (uses): Proceeds from sales of capital assets - 64,549 - Transfers in - 1,609,664 - Transfers out (317,401) - - Total other financing sources and uses (317,401) 1,674,213 - Net change in fund balances (1,219,775) 124,903 4,643 Fund balances – beginning of year 1,219,775 3,753,245 1,023,461 Fund balances – end of year -$ 3,878,148 $ 1,028,104 $ CITY OF LAKE FOREST, ILLINOIS Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Capital Projects Funds 112 74 Exhibit C-2 Route 60 Route 60 2010 Total Intersection Fitzmorris Bond Nonmajor Improvements Improvements Construction Governmental Fund Fund Fund Funds -$ -$ -$ 4,364,850 $ - - - 1,275,113 - - - 612,357 - - - 1,037,409 - - - 1,532,978 2,485 91 203 387,133 - - - 14,105 2,485 91 203 9,223,945 - - - 3,438,416 - - - 622,354 - - - 274,364 - - 52,027 4,339,341 - - - 1,377,736 - - - 1,392,342 - - 52,027 11,444,553 2,485 91 (51,824) (2,220,608) - - - 64,549 - - - 2,421,536 - - - (317,401) - - - 2,168,684 2,485 91 (51,824) (51,924) 547,869 20,270 51,824 14,827,811 550,354 $ 20,361 $ -$ 14,775,887 $ 113 75 Exhibit C-3 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Asset Forfeiture Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Revenues: Intergovernmental 5,000 $ 26,108 $ 21,108 $ Investment income 253 369 116 Total revenues 5,253 26,477 21,224 Expenditures: Current: Contingency 3,900 - 3,900 Capital outlay 39,000 - 39,000 Total expenditures 42,900 - 42,900 Net change in fund balance (37,647) $ 26,477 64,124 $ Fund balance – beginning of year 72,504 Fund balance – end of year 98,981 $ 114 76 Exhibit C-4 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Foreign Fire Insurance Tax Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Revenues: Charges for services 96,000 $ 118,977 $ 22,977 $ Investment income 630 119 (511) Total revenues 96,630 119,096 22,466 Expenditures: Current: Public safety 105,000 57,849 47,151 Contingency 10,500 - 10,500 Total expenditures 115,500 57,849 57,651 Net change in fund balance (18,870) $ 61,247 80,117 $ Fund balance – beginning of year 110,999 Fund balance – end of year 172,246 $ 115 77 Exhibit C-5 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Emergency Telephone Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Revenues: Charges for services 277,072 $ 286,247 $ 9,175 $ Investment income - 838 838 Total revenues 277,072 287,085 10,013 Expenditures: Current: Public safety 251,209 216,515 34,694 Contingency 31,601 - 31,601 Capital outlay 64,800 64,800 - Total expenditures 347,610 281,315 66,295 Net change in fund balance (70,538) $ 5,770 76,308 $ Fund balance – beginning of year 259,520 Fund balance – end of year 265,290 $ 116 78 Exhibit C-6 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenditures, and Changes in Fund Balance (Deficit) – Budget and Actual Parks and Public Land Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Revenues: Grants and contributions 50,000 $ 25,000 $ (25,000) $ Charges for services 78,340 59,071 (19,269) Investment income 1,423 1,814 391 Total revenues 129,763 85,885 (43,878) Expenditures: Current: Contingency 12,700 - 12,700 Capital outlay 127,000 30,000 97,000 Total expenditures 139,700 30,000 109,700 Net change in fund balance (9,937) $ 55,885 65,822 $ Fund balance – beginning of year 357,110 Fund balance – end of year 412,995 $ 117 79 Exhibit C-7 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Motor Fuel Tax Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Revenues: Intergovernmental revenues 552,000 $ 586,249 $ 34,249 $ Investment income 1,069 2,428 1,359 Total revenues 553,069 588,677 35,608 Expenditures: Current: Contingency 10,000 - 10,000 Capital outlay 100,000 71,261 28,739 Total expenditures 110,000 71,261 38,739 Net change in fund balance 443,069 $ 517,416 74,347 $ Fund balance – beginning of year 285,530 Fund balance – end of year 802,946 $ 118 80 Exhibit C-8 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual General Cemetery Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Revenues: Charges for services 616,683 $ 650,391 $ 33,708 $ Investment income 67,220 332,328 265,108 Miscellaneous revenue 30,502 14,105 (16,397) Total revenues 714,405 996,824 282,419 Expenditures: Current: General government 828,363 502,323 326,040 Contingency 97,096 - 97,096 Debt service: Principal retirement 135,000 135,000 - Interest 7,600 7,600 - Total expenditures 1,068,059 644,923 423,136 Net change in fund balance (353,654) $ 351,901 705,555 $ Fund balance – beginning of year 3,749,480 Fund balance – end of year 4,101,381 $ 119 81 Exhibit C-9 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Senior Resources Commission Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Revenues: Grants and contributions 169,761 $ 171,224 $ 432 $ Charges for services 168,500 170,193 1,693 Investment income 630 518 (112) Total revenues 338,891 341,935 3,044 Expenditures: Current: General government 1,220 - 1,220 Culture and recreation 549,664 575,040 (25,376) Contingency 55,088 - 55,088 Total expenditures 605,972 575,040 30,932 Excess (deficiency) of revenues over expenditures (267,081) (233,105) 33,976 Other financing sources: Transfers in 213,388 213,388 - Net change in fund balance (53,693) $ (19,717) 33,976 $ Fund balance – beginning of year 122,668 Fund balance – end of year 102,951 $ 120 82 Exhibit C-10 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Housing Trust Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Other taxes - demolition tax 30,000 $ 36,000 $ 6,000 $ Investment income 6,200 3,724 (2,476) Total revenues 36,200 39,724 3,524 Expenditures: Current: General government 275,000 126,066 148,934 Contingency 27,500 - 27,500 Total expenditures 302,500 126,066 176,434 Net change in fund balance (266,300) $ (86,342) 179,958 $ Fund balance – beginning of year 852,136 Fund balance – end of year 765,794 $ Revenues: 121 83 Exhibit C-11 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Elawa Farm Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Revenues: Grants and contributions 24,000 $ 24,001 $ 1 $ Charges for services 71,861 106,639 34,778 Investment income - 535 535 Total revenues 95,861 131,175 35,314 Expenditures: Current: Culture and recreation 72,100 47,314 24,786 Contingency 7,210 - 7,210 Total expenditures 79,310 47,314 31,996 Net change in fund balance 16,551 $ 83,861 67,310 $ Fund balance – beginning of year 85,201 Fund balance – end of year 169,062 $ 122 84 Exhibit C-12 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Debt Service Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Revenues: Taxes Property 1,933,003 $ 1,965,571 $ 32,568 $ Grants and contributions 168,384 168,384 - Investment income 190 12,861 12,671 Total revenues 2,101,577 2,146,816 45,239 Expenditures: Current: General government 3,600 26,767 (23,167) Debt service: Principal 1,242,734 1,242,736 (2) Interest 1,384,561 1,384,742 (181) Total expenditures 2,630,895 2,654,245 (23,350) Deficiency of revenues over expenditures (529,318) (507,429) 21,889 Transfers in 614,903 598,484 (16,419) Net change in fund balance 85,585 $ 91,055 5,470 $ Fund balance – beginning of year 2,316,219 Fund balance – end of year 2,407,274 $ Other financing sources: 123 85 Exhibit C-13 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenditures, and Changes in Fund Balance (Deficit) – Budget and Actual West Lake Forest TIF District Construction Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Revenues: Taxes: Property 2,273,432 $ 2,389,515 $ 116,083 $ Investment income - 7,978 7,978 Total revenues 2,273,432 2,397,493 124,061 Expenditures: Current: General government 2,793,690 2,620,554 173,136 Contingency 328,219 - 328,219 Capital outlay 488,498 679,313 (190,815) Total expenditures 3,610,407 3,299,867 310,540 Excess (deficiency) of revenues over expenditures (1,336,975) (902,374) 434,601 Transfers out - (317,401) (317,401) Net change in fund balance (1,336,975) $ (1,219,775) 117,200 $ Fund balance – beginning of year 1,219,775 Fund balance – end of year -$ Other financing uses: 124 86 Exhibit C-14 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Capital Improvements Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Revenues: Taxes: Property 9,764 $ 9,764 $ -$ Other 1,268,500 1,239,113 (29,387) Grants and contributions 147,840 648,800 500,960 Charges for services 120,000 141,460 21,460 Investment income 14,959 16,199 1,240 Total revenues 1,561,063 2,055,336 494,273 Expenditures: Current: General government 164,377 162,706 1,671 Contingency 456,638 - 456,638 Capital outlay 4,402,002 3,441,940 960,062 Total expenditures 5,023,017 3,604,646 1,418,371 Excess (deficiency) of revenues over expenditures (3,461,954) (1,549,310) 1,912,644 Other financing sources: Proceeds from sales of capital assets: Sale of equipment - 64,549 64,549 Transfers in 1,400,000 1,609,664 209,664 Total other financing sources 1,400,000 1,674,213 274,213 Net change in fund balance (2,061,954) $ 124,903 2,186,857 $ Fund balance – beginning of year 3,753,245 Fund balance – end of year 3,878,148 $ 125 87 Exhibit C-15 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Route 60 Bridge Improvements Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Revenues: Investment income -$ 4,643 $ 4,643 $ Expenditures: Current: Contingency 102,171 - 102,171 Capital outlay 1,021,711 - 1,021,711 Total expenditures 1,123,882 - 1,123,882 Net change in fund balance (1,123,882) $ 4,643 1,128,525 $ Fund balance – beginning of year 1,023,461 Fund balance – end of year 1,028,104 $ 126 88 Exhibit C-16 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Route 60 Intersection Improvements Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Revenues: Investment income -$ 2,485 $ 2,485 $ Expenditures: Current: Contingency 54,693 - 54,693 Capital outlay 546,932 - 546,932 Total expenditures 601,625 - 601,625 Net change in fund balance (601,625) $ 2,485 604,110 $ Fund balance – beginning of year 547,869 Fund balance – end of year 550,354 $ 127 89 Exhibit C-17 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual Route 60 Fitzmorris Improvements Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Revenues: Investment income -$ 91 $ 91 $ Expenditures: Current: Contingency 2,023 - 2,023 Capital outlay 20,234 - 20,234 Total expenditures 22,257 - 22,257 Net change in fund balance (22,257) $ 91 22,348 $ Fund balance – beginning of year 20,270 Fund balance – end of year 20,361 $ 128 90 Exhibit C-18 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenditures, and Changes in Fund Balance (Deficit) – Budget and Actual 2010 Bond Construction Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Revenues: Investment income -$ 203 $ 203 $ Expenditures: Capital outlay 87,600 52,027 35,573 Net change in fund balance (87,600) $ (51,824) 35,776 $ Fund balance – beginning of year 51,824 Fund balance – end of year -$ 129 MAJOR ENTERPRISE FUND Waterworks and Sewerage Fund The Waterworks and Sewerage Fund accounts for the provision of water and sewer service to the residents of the City. 130 91 CITY OF LAKE FOREST, ILLINOIS Exhibit D-1 Schedule of Revenues, Expenses, and Nonoperating Revenues (Expenses) Budget and Actual (Budgetary Basis) Waterworks and Sewerage Fund For the Year Ended April 30, 2013 Original and Variance Final Actual with Appropriations Amounts Final Budget Operating revenues: Charges for services 7,352,472 $ 8,501,694 $ 1,149,222 $ Connection fees 78,500 89,060 10,560 Miscellaneous 3,000 7,325 4,325 Total operating revenues 7,433,972 8,598,079 1,164,107 Operating expenses: General and administrative 2,053,377 2,706,523 (653,146) Operations and maintenance 3,159,458 2,766,996 392,462 Contingency 941,701 - 941,701 Total operating expenses 6,154,536 5,473,519 681,017 Nonoperating revenues (expenses): Investment income 43,400 35,167 (8,233) Principal retirement (1,714,000) (1,660,000) 54,000 Interest expense (489,220) (656,808) (167,588) Total nonoperating revenues (expenses)(2,159,820) (2,281,641) (121,821) 131 NONMAJOR ENTERPRISE FUND Deerpath Golf Course Fund The Golf Fund accounts for the operations of the City golf course. Financing is provided by user charges from utilizing the golf course. 132 92 Exhibit E-1 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenses, and Nonoperating Revenues (Expenses) Budget and Actual (Budgetary Basis) Deerpath Golf Course Fund For the Year Ended April 30, 2013 Original and Variance Final Actual with Appropriations Amounts Final Budget Operating revenues: Charges for services 1,362,234 $ 1,320,455 $ (41,779) $ Miscellaneous 5,000 - (5,000) Total operating revenues 1,367,234 1,320,455 (46,779) Operating expenses: General and administrative 567,685 569,521 (1,836) Operations and maintenance 705,353 695,149 10,204 Contingency 138,383 - 138,383 Total operating expenses 1,411,421 1,264,670 146,751 Nonoperating revenues (expenses): Investment income 1,439 2,686 1,247 Principal retirement (78,000) (84,000) (6,000) Interest expense (32,788) (22,965) 9,823 Total nonoperating revenues (expenses) (109,349) (104,279) 5,070 133 INTERNAL SERVICE FUNDS Fleet Fund The Fleet Fund accounts for the costs of operating a maintenance and repairs facility for automotive and other equipment used by other City departments. Such costs are billed to the other departments at actual cost plus an allocation of administrative costs based on actual costs. The automotive and other equipment itself is acquired by the various user departments. Self Insurance Fund The Self Insurance Fund accounts for the costs of the self-insured medical and dental plan. Administration of the plan is provided by Professional Benefit Administrators, Inc. Liability Insurance Fund The Liability Insurance Fund accounts for the costs of liability insurance. 134 93 Exhibit F-1 CITY OF LAKE FOREST, ILLINOIS Combining Statement of Net Position Internal Service Funds April 30, 2013 Total Self Liability Internal Fleet Insurance Insurance Service Assets Fund Fund Fund Funds Current assets: Cash and cash equivalents 187,573 $ 5,949,729 $ 495,310 $ 6,632,612 $ Other receivables 6,117 8,579 - 14,696 Inventories 297,426 - - 297,426 Prepaid items - - 530,267 530,267 Total current assets 491,116 5,958,308 1,025,577 7,475,001 Noncurrent assets: Capital assets: Being depreciated, net of accumulated depreciation 32,936 - - 32,936 Total capital assets, net 32,936 - - 32,936 Total noncurrent assets 32,936 - - 32,936 Total assets 524,052 5,958,308 1,025,577 7,507,937 Liabilities Current liabilities: Accounts payable 58,903 225,232 40,866 325,001 Accrued liabilities 13,465 360,659 166,780 540,904 Current portion of long-term obligations: Accrued compensated absences 3,012 - - 3,012 Total current liabilities 75,380 585,891 207,646 868,917 Noncurrent liabilities: Accrued compensated absences 50,539 - - 50,539 Total liabilities 125,919 585,891 207,646 919,456 Net Position Net investment in capital assets 32,936 - - 32,936 Unrestricted 365,197 5,372,417 817,931 6,555,545 Total net position 398,133 $ 5,372,417 $ 817,931 $ 6,588,481 $ 135 94 Exhibit F-2 CITY OF LAKE FOREST, ILLINOIS Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Internal Service Funds For the Year Ended April 30, 2013 Total Self Liability Internal Fleet Insurance Insurance Service Fund Fund Fund Funds Operating revenues: Charges for services 1,885,916 $ 4,796,173 $ 1,327,356 $ 8,009,445 $ Operating expenses: General and administrative 1,749,201 4,695,508 1,205,978 7,650,687 Depreciation and amortization 4,804 - - 4,804 Total operating expenses 1,754,005 4,695,508 1,205,978 7,655,491 Operating income 131,911 100,665 121,378 353,954 Nonoperating revenues: Investment income 619 25,746 2,252 28,617 Change in net position 132,530 126,411 123,630 382,571 Net position – beginning of year 265,603 5,246,006 694,301 6,205,910 Net position – end of year 398,133 $ 5,372,417 $ 817,931 $ 6,588,481 $ 136 95 Exhibit F-3 CITY OF LAKE FOREST, ILLINOIS Combining Statement of Cash Flows Internal Service Funds For the Year Ended April 30, 2013 Total Self Liability Internal Fleet Insurance Insurance Service Fund Fund Fund Funds Cash flows from operating activities: Receipts from interfund services provided 1,884,066 $ 4,787,594 $ 1,327,356 $ 7,999,016 $ Payments to suppliers (1,108,614) (4,814,094) (1,033,333) (6,956,041) Payments to employees (665,369) - - (665,369) Net cash flows from operating activities 110,083 (26,500) 294,023 377,606 Cash flows from investing activities: Interest and dividends received 619 25,746 2,252 28,617 Increase (decrease) in cash and cash equivalents 110,702 (754) 296,275 406,223 Cash and cash equivalents – beginning of year 76,871 5,950,483 199,035 6,226,389 Cash and cash equivalents – end of year 187,573 $ 5,949,729 $ 495,310 $ 6,632,612 $ Reconciliation of operating income to net cash flows from operating activities: Operating income 131,911 $ 100,665 $ 121,378 $ 353,954 $ Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation expense 4,804 - - 4,804 Changes in assets and liabilities: Accounts receivable 75 (8,579) - (8,504) Other assets (38,097) - 28,784 (9,313) Accounts payable 15,911 (7,460) 33,182 41,633 Accrued liabilities 2,900 (111,126) 110,679 2,453 Deferred revenue (1,925) - - (1,925) Compensated absences (5,496) - - (5,496) Total adjustments (21,828) (127,165) 172,645 23,652 Net cash flows from operating activities 110,083 $ (26,500) $ 294,023 $ 377,606 $ 137 96 Exhibit F-4 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenses, Nonoperating Revenues and Transfers Budget and Actual (Budgetary Basis) Fleet Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Operating revenues: Charges for services 1,882,302 $ 1,885,916 $ 3,614 $ Operating expenses: General and administrative 1,893,525 1,749,201 144,324 Contingency 189,353 - 189,353 Total operating expenses 2,082,878 1,749,201 333,677 Nonoperating revenues: Investment income 4,725 619 (4,106) 138 97 Exhibit F-5 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenses and Nonoperating Revenues Budget and Actual (Budgetary Basis) Self Insurance Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Operating revenues: Charges for services 4,620,800 $ 4,796,173 $ 175,373 $ Operating expenses: General and administrative 4,636,000 4,695,508 (59,508) Contingency 463,600 - 463,600 Total operating expenses 5,099,600 4,695,508 404,092 Nonoperating revenues: Investment income 21,000 25,746 4,746 139 98 Exhibit F-6 CITY OF LAKE FOREST, ILLINOIS Schedule of Revenues, Expenses, Nonoperating Revenues and Transfers Budget and Actual (Budgetary Basis) Liability Insurance Fund For the Year Ended April 30, 2013 Original and Final Actual Variance with Appropriations Amounts Final Budget Operating revenues: Charges for services 1,245,210 $ 1,327,356 $ 82,146 $ Operating expenses: General and administrative 1,206,000 1,205,978 22 Contingency 120,600 - 120,600 Total operating expenses 1,326,600 1,205,978 120,622 Nonoperating revenues: Investment income 661 2,252 1,591 140 FIDUCIARY FUNDS Pension Trust Funds Police Pension Fund The Police Pension Fund accounts for the accumulation of resources to be used for disability or retirement annuity payments to uniformed police department personnel at appropriate amounts and times in the future. Resources are contributed by employees at rates fixed by law and by the City at amounts determined by an independent actuary from a specific property tax levy. Firefighters’ Pension Fund The Firefighters’ Pension Fund accounts for the accumulation of resources to be used for disability or retirement annuity payments to uniformed fire department personnel at appropriate amounts and times in the future. Resources are contributed by employees at rates fixed by law and by the City at amounts determined by an independent actuary from a specific annual property tax levy. Private Purpose Trust Fund Cemetery Trust Fund – The Cemetery Trust Fund accounts for monies provided by private donations. The investment earnings are expended for the operations of the cemetery. These statements are included in Exhibits A-10 and A-11. Agency Fund Special Assessment Fund – The Special Assessment Fund is used to account for the collection of special assessments of property owners and payments of related special assessment liabilities. The City does not have any outstanding special assessments. The cash balance is unclaimed rebated special assessments. 141 99 Exhibit G-1 CITY OF LAKE FOREST, ILLINOIS Combining Statement of Fiduciary Net Position Pension Trust Funds April 30, 2013 Police Firefighters' Pension Pension Assets Fund Fund Total Cash and cash equivalents 180,091 $ 2,309,347 $ 2,489,438 $ Investments: U.S. Treasury obligations 3,710,813 2,383,421 6,094,234 U.S. Government agencies 6,031,170 5,939,896 11,971,066 Municipal/corporate bonds 958,306 4,604,373 5,562,679 Common stock 1,811,953 - 1,811,953 Equity mutual funds 11,401,523 13,549,682 24,951,205 Other receivables 104,700 105,326 210,026 Prepaid expenses 6,891 5,090 11,981 Total assets 24,205,447 28,897,135 53,102,582 Liabilities Accounts payable 1,836 4,790 6,626 Net Position Held in trust for pension benefits 24,203,611 $ 28,892,345 $ 53,095,956 $ 142 100 Exhibit G-2 CITY OF LAKE FOREST, ILLINOIS Combining Statement of Changes in Fiduciary Net Position Pension Trust Funds For the Year Ended April 30, 2013 Police Firefighters' Pension Pension Fund Fund Total Additions: Contributions: Employer 1,502,075 $ 1,026,345 $ 2,528,420 $ Employee 322,609 288,560 611,169 Total contributions 1,824,684 1,314,905 3,139,589 Interest income 503,586 804,482 1,308,068 Net appreciation in fair value of investments 1,715,942 1,491,548 3,207,490 Less investment expenses (127,343) (80,450) (207,793) Net investment income 2,092,185 2,215,580 4,307,765 Total additions 3,916,869 3,530,485 7,447,354 Deductions: Pension benefits and refunds 1,838,832 1,531,361 3,370,193 Other administrative expenses 5,800 5,800 11,600 1,844,632 1,537,161 3,381,793 Change in net position 2,072,237 1,993,324 4,065,561 Net position held in trust at beginning of year 22,131,374 26,899,021 49,030,395 Net position held in trust at end of year 24,203,611 $ 28,892,345 $ 53,095,956 $ 143 101 Exhibit G-3 CITY OF LAKE FOREST, ILLINOIS Statement of Changes in Assets and Liabilities Agency Fund - Special Assessment Fund For the Year Ended April 30, 2013 Balance, Balance, May 1 Additions Deductions April 30 Assets Cash and cash equivalents 60,174 $ -$ -$ 60,174 $ Liabilities Amounts held in trust for special assessment districts 60,174 $ -$ -$ 60,174 $ 144 102 CITY OF LAKE FOREST, ILLINOIS Exhibit G-4 Police Pension Fund Schedule of Changes in Fiduciary Net Position - Budget and Actual For the Year Ended April 30, 2013 Original/Final Variance with Appropriations Actual Final Budget Additions: Contributions Employer 1,513,910 $ 1,502,075 $ (11,835) $ Employee 350,000 322,609 (27,391) Total contributions 1,863,910 1,824,684 (39,226) Interest income 75,000 503,586 428,586 Net appreciation in fair value of investments - 1,715,942 1,715,942 Less investment expense (110,000) (127,343) (17,343) Net investment income (35,000) 2,092,185 2,127,185 Total additions 1,828,910 3,916,869 2,087,959 Deductions: Pension benefits and refunds 1,830,000 1,838,832 (8,832) Other administrative expenses 5,800 5,800 - Contingency 194,580 - 194,580 Total deductions 2,030,380 1,844,632 185,748 Change in net position (201,470) $ 2,072,237 2,273,707 $ Net position held in trust at beginning of year 22,131,374 Net position held in trust at end of year 24,203,611 $ 145 103 CITY OF LAKE FOREST, ILLINOIS Exhibit G-5 Firefighters' Pension Fund Schedule of Changes in Fiduciary Net Position - Budget and Actual For the Year Ended April 30, 2013 Original/Final Variance with Appropriations Actual Final Budget Additions: Contributions Employer 1,018,863 $ 1,026,345 $ 7,482 $ Employee 285,000 288,560 3,560 Total contributions 1,303,863 1,314,905 11,042 Interest income 500,000 804,482 304,482 Net appreciation in fair value of investments - 1,491,548 1,491,548 Less investment expense (81,000) (80,450) 550 Net investment income 419,000 2,215,580 1,796,580 Total additions 1,722,863 3,530,485 1,807,622 Deductions: Pension benefits and refunds 1,580,000 1,531,361 48,639 Other administrative expenses 5,800 5,800 - Contingency 166,680 - 166,680 Total deductions 1,752,480 1,537,161 215,319 Change in net position (29,617) $ 1,993,324 2,022,941 $ Net position held in trust at beginning of year 26,899,021 Net position held in trust at end of year 28,892,345 $ 146 DISCRETELY PRESENTED COMPONENT UNIT 147 Lake Forest Library General Fund The General Fund accounts for the operation and maintenance of the Lake Forest Library. Financing is provided by a specific annual property tax levy, charges for services, fines and forfeits, interest earned on investments and other miscellaneous revenues. 148 104 Exhibit H-1 CITY OF LAKE FOREST, ILLINOIS Discretely Presented Component Unit – Lake Forest Library Statement of Net Position and General Fund Balance Sheet April 30, 2013 General Statement of Assets Fund Adjustments Net Position Cash and cash equivalents 1,278,923 $ -$ 1,278,923 $ Receivables (net of allowance for uncollectibles): Property taxes 3,677,334 - 3,677,334 Other taxes 6,310 - 6,310 Capital assets (net): Capital assets not depreciated - 219,000 219,000 Capital assets depreciated (net)- 3,322,484 3,322,484 Total assets 4,962,567 $ 3,541,484 $ 8,504,051 $ Liabilities Liabilities: Accounts payable 22,926 $ -$ 22,926 $ Accrued liabilities 46,626 - 46,626 Unearned revenue – property taxes 3,677,334 - 3,677,334 Long-term obligations: Due within one year - 41,433 41,433 Due in more than one year - 242,062 242,062 Total Liabilities 3,746,886 283,495 4,030,381 Fund balance: Unassigned 1,215,681 (1,215,681) - Net position: Net investment in capital assets - 3,452,764 3,452,764 Unrestricted - 1,020,906 1,020,906 Total fund balance/net position 1,215,681 3,257,989 4,473,670 Total liabilities and fund balance/net position 4,962,567 $ 3,541,484 $ 8,504,051 $ Fund Balance/Net Position: 149 105 Exhibit H-2 CITY OF LAKE FOREST, ILLINOIS Discretely Presented Component Unit – Lake Forest Library Statement of Activities and General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended April 30, 2013 Statement General of Fund Adjustments Activities Revenues Taxes: Property 3,528,469 $ -$ 3,528,469 $ Other 31,348 - 31,348 Intergovernmental – per capita grant 19,869 - 19,869 Grants and contributions 25,099 - 25,099 Charges for services 14,250 - 14,250 Fines 48,311 - 48,311 Investment income 9,790 - 9,790 Other 65,606 - 65,606 Total revenues 3,742,742 - 3,742,742 Expenditures/expenses Current: Library services: Personnel services 2,198,712 17,730 2,216,442 Other 962,913 (317,268) 645,645 Library building: Personnel services 143,139 672 143,811 Other 118,145 274,585 392,730 Capital outlay: Building and office 91,452 (91,452) - Capital improvements 159,795 (159,795) - Debt service: Principal retirement 29,469 (29,469) - Interest - - - Total expenditures/expenses 3,703,625 (304,997) 3,398,628 Excess (deficiency) of revenues over expenditures 39,117 304,997 344,114 Other financing sources: Proceeds from capital assets 96,529 (96,529) - Net change in fund balance/net position 135,646 208,468 344,114 Fund balance/net position – beginning of year 1,080,035 3,049,521 4,129,556 Fund balance/net position – end of year 1,215,681 $ 3,257,989 $ 4,473,670 $ 150 106 Exhibit I-1 CITY OF LAKE FOREST, ILLINOIS Summary of Debt Service Requirements to Maturity April 30, 2013 General Fiscal Obligation year Bonds 2014 5,040,220 $ 2015 5,042,278 2016 14,840,318 2017 4,780,013 2018 4,803,556 2019 4,786,920 2020 4,805,877 2021 4,819,863 2022 4,674,275 2023 4,676,256 2024 3,760,265 2025 1,668,457 2026 1,661,556 2027 1,652,526 2028 1,645,389 2029 994,130 2030 965,700 2031 921,450 2032 916,600 2033 909,450 73,365,099 $ 151 107 Exhibit I-2 CITY OF LAKE FOREST, ILLINOIS Debt Service Requirements to Maturity – General Obligation Bonds April 30, 2013 Fiscal Year Principal Interest Principal Interest Principal Interest 2014 55,000 $ 15,828 $ 13,963 $ 5,211 $ 96,986 $ 41,500 $ 2015 55,000 14,703 14,522 4,848 100,914 38,916 2016 60,000 13,575 15,117 4,470 105,102 36,241 2017 60,000 12,285 15,767 4,047 109,569 33,351 2018 60,000 10,935 16,461 3,590 114,335 30,228 2019 65,000 9,525 17,202 3,096 119,423 26,855 2020 65,000 7,932 17,993 2,563 124,857 23,213 2021 70,000 6,275 18,839 1,987 130,663 19,280 2022 75,000 4,350 19,743 1,365 136,870 15,034 2023 75,000 2,213 20,701 704 143,508 10,448 2024 - - - - 150,611 5,497 2025 - - - - - - 2026 - - - - - - 2027 - - - - - - 2028 - - - - - - 2029 - - - - - - 2030 - - - - - - 2031 - - - - - - 2032 - - - - - - 2033 - - - - - - 640,000 $ 97,621 $ 170,308 $ 31,881 $ 1,332,838 $ 280,563 $ (Continued) Special Service Area 29 Tax Bonds Special Service Area 25 Special Service Area 26 Tax BondsTax Bonds 152 108 Exhibit I-2, Cont. CITY OF LAKE FOREST, ILLINOIS Debt Service Requirements to Maturity - General Obligation Bonds April 30, 2013 Fiscal Year Principal Interest Principal Interest Principal Interest 2014 535,000 $ 297,263 $ 165,000 $ 113,145 $ -$ 289,950 $ 2015 550,000 279,206 170,000 109,845 - 289,950 2016 565,000 260,644 170,000 106,445 9,665,000 289,950 2017 580,000 241,575 175,000 102,620 - - 2018 600,000 222,000 180,000 98,245 - - 2019 615,000 201,750 185,000 93,745 - - 2020 635,000 180,225 190,000 88,195 - - 2021 465,000 158,000 200,000 82,495 - - 2022 485,000 141,725 205,000 76,495 - - 2023 500,000 124,144 215,000 68,808 - - 2024 520,000 106,019 225,000 60,745 - - 2025 540,000 87,169 235,000 51,745 - - 2026 560,000 66,919 245,000 42,345 - - 2027 580,000 45,919 255,000 32,545 - - 2028 605,000 23,444 265,000 22,345 - - 2029 - - 280,000 11,480 - - 2030 - - - - - - 2031 - - - - - - 2032 - - - - - - 2033 - - - - - - 8,335,000 $ 2,436,002 $ 3,360,000 $ 1,161,243 $ 9,665,000 $ 869,850 $ (Continued) Series 2009 Obligation Bonds Obligation BondsObligation Bonds Series 2008 2010 Series A 153 109 Exhibit I-2, Cont. CITY OF LAKE FOREST, ILLINOIS Debt Service Requirements to Maturity - General Obligation Bonds April 30, 2013 Fiscal Year Principal Interest Principal Interest Principal Interest 2014 -$ 172,500 $ -$ 259,311 $ 480,000 $ 36,863 $ 2015 - 172,500 - 259,311 480,000 27,263 2016 - 172,500 300,000 259,311 325,000 20,063 2017 - 172,500 195,000 250,311 120,000 15,188 2018 - 172,500 210,000 243,974 125,000 12,788 2019 - 172,500 225,000 236,099 130,000 9,975 2020 - 172,500 215,000 227,099 130,000 7,050 2021 - 172,500 405,000 217,424 140,000 3,150 2022 - 172,500 415,000 198,693 - - 2023 - 172,500 425,000 178,980 - - 2024 - 172,500 435,000 158,793 - - 2025 - 172,500 445,000 137,043 - - 2026 - 172,500 460,000 114,792 - - 2027 - 172,500 475,000 91,562 - - 2028 - 172,500 490,000 67,100 - - 2029 - 172,500 490,000 40,150 - - 2030 540,000 172,500 240,000 13,200 - - 2031 780,000 141,450 - - - - 2032 820,000 96,600 - - - - 2033 860,000 49,450 - - - - 3,000,000 $ 3,220,000 $ 5,425,000 $ 2,953,153 $ 1,930,000 $ 132,340 $ (Continued) Obligation Bonds 2010 Series C Obligation Bonds Obligation Bonds 2010 Series B 2011 Series A 154 110 Exhibit I-2, Conc. CITY OF LAKE FOREST, ILLINOIS Debt Service Requirements to Maturity - General Obligation Bonds April 30, 2013 Total Fiscal Requirements Year Principal Interest Principal Interest Total 2014 1,870,000 $ 592,700 $ 3,215,949 $ 1,824,271 $ 5,040,220 $ 2015 1,920,000 555,300 3,290,436 1,751,842 5,042,278 2016 1,955,000 516,900 13,160,219 1,680,099 14,840,318 2017 2,215,000 477,800 3,470,336 1,309,677 4,780,013 2018 2,270,000 433,500 3,575,796 1,227,760 4,803,556 2019 2,300,000 376,750 3,656,625 1,130,295 4,786,920 2020 2,400,000 319,250 3,777,850 1,028,027 4,805,877 2021 2,470,000 259,250 3,899,502 920,361 4,819,863 2022 2,530,000 197,500 3,866,613 807,662 4,674,275 2023 2,605,000 134,250 3,984,209 692,047 4,676,256 2024 1,870,000 56,100 3,200,611 559,654 3,760,265 2025 - - 1,220,000 448,457 1,668,457 2026 - - 1,265,000 396,556 1,661,556 2027 - - 1,310,000 342,526 1,652,526 2028 - - 1,360,000 285,389 1,645,389 2029 - - 770,000 224,130 994,130 2030 - - 780,000 185,700 965,700 2031 - - 780,000 141,450 921,450 2032 - - 820,000 96,600 916,600 2033 - - 860,000 49,450 909,450 24,405,000 $ 3,919,300 $ 58,263,146 $ 15,101,953 $ 73,365,099 $ (Concluded) Obligation Bonds 2011 Series B 155 111 Exhibit I-3 CITY OF LAKE FOREST, ILLINOIS Special Service Area 25 Special Tax Bonds – 2003 Series April 30, 2013 Date of issue: May 1, 2003 Date of maturity: December 15, 2022 Authorized issue: $ 1,050,000 Denomination of bonds: $ 5,000 Interest rate: 1.95-2.95% Interest dates: June 15 and December 15 Payable at: Lake Forest Bank and Trust Lake Forest, Illinois Redeemable annually on December 15 Amount 2013 55,000 $ 2014 55,000 2015 60,000 2016 60,000 2017 60,000 Thereafter 350,000 640,000 $ Bond Principal and Interest Requirements Tax levy Tax levy year Principal Interest Total June 15 Amount December 15 Amount 2012 55,000 $ 15,828 $ 70,828 $ 2013 7,941 $ 2013 7,887 $ 2013 55,000 14,703 69,703 2014 7,351 2014 7,352 2014 60,000 13,575 73,575 2015 6,787 2015 6,788 2015 60,000 12,285 72,285 2016 6,143 2016 6,142 2016 60,000 10,935 70,935 2017 5,467 2017 5,468 Thereafter 350,000 30,295 380,295 Thereafter 15,147 Thereafter 15,148 640,000 $ 97,621 $ 737,621 $ Coupons due on 156 112 Exhibit I-4 CITY OF LAKE FOREST, ILLINOIS Special Service Area 26 Special Tax Bonds – 2003 Series April 30, 2013 Date of issue:October 7, 2003 Date of maturity:December 15, 2022 Authorized issue:$ 276,500 Denomination of bonds: One bond per maturity Interest rate:2.50-3.40% Interest dates:June 15 and December 15 Payable at:Lake Forest Bank and Trust Lake Forest, Illinois Redeemable annually on December 15 Amount 2013 13,963 $ 2014 14,522 2015 15,117 2016 15,767 2017 16,461 Thereafter 94,478 170,308 $ Bond Principal and Interest Requirements Tax levy Tax levy year Principal Interest Total June 15 Amount December 15 Amount 2012 13,963 $ 5,211 $ 19,174 $ 2013 2,613 $ 2013 2,598 $ 2013 14,522 4,848 19,370 2014 2,424 2014 2,424 2014 15,117 4,470 19,587 2015 2,235 2015 2,235 2015 15,767 4,047 19,814 2016 2,023 2016 2,024 2016 16,461 3,590 20,051 2017 1,795 2017 1,795 Thereafter 94,478 9,715 104,193 Thereafter 4,857 Thereafter 4,858 170,308 $ 31,881 $ 202,189 $ Coupons due on 157 113 Exhibit I-5 CITY OF LAKE FOREST, ILLINOIS Special Service Area 29 Special Tax Bonds – 2004 Series April 30, 2013 Date of issue: December 20, 2004 Date of maturity: December 15, 2023 Authorized issue: $ 2,000,000 Denomination of bonds: One bond per maturity Interest rate: 2.55-3.65% Interest dates: June 15 and December 15 Payable at: Well Fargo Bank Chicago, Illinois Redeemable annually on December 15 Amount 2013 96,986 $ 2014 100,914 2015 105,102 2016 109,569 2017 114,335 Thereafter 805,932 1,332,838 $ Bond Principal and Interest Requirements Tax levy Tax levy year Principal Interest Total June 15 Amount December 15 Amount 2012 96,986 $ 41,500 $ 138,486 $ 2013 20,806 $ 2013 20,694 $ 2013 100,914 38,916 139,830 2014 19,458 2014 19,458 2014 105,102 36,241 141,343 2015 18,121 2015 18,120 2015 109,569 33,351 142,920 2016 16,675 2016 16,676 2016 114,335 30,228 144,563 2017 15,114 2017 15,114 Thereafter 805,932 100,327 906,259 Thereafter 50,164 Thereafter 50,163 1,332,838 $ 280,563 $ 1,613,401 $ Coupons due on 158 114 Exhibit I-6 CITY OF LAKE FOREST, ILLINOIS General Obligation Bonds – 2008 Series April 30, 2013 Date of issue: April 15, 2008 Date of maturity: December 15, 2027 Authorized issue: 9,750,000$ Denomination of bonds: 5,000$ Interest rate: 3.375-3.875% Interest dates: June 15 and December 15 Payable at: Wells Fargo Bank Chicago, Illinois Redeemable annually on December 15 Amount 2013 535,000 $ 2014 550,000 2015 565,000 2016 580,000 2017 600,000 Thereafter 5,505,000 8,335,000 $ Bond Principal and Interest Requirements Tax levy Tax levy year Principal Interest Total June 15 Amount December 15 Amount 2012 535,000 $ 297,263 $ 832,263 $ 2013 148,631 $ 2013 148,632 $ 2013 550,000 279,206 829,206 2014 139,603 2014 139,603 2014 565,000 260,644 825,644 2015 130,322 2015 130,322 2015 580,000 241,575 821,575 2016 120,787 2016 120,788 2016 600,000 222,000 822,000 2017 111,000 2017 111,000 Thereafter 5,505,000 1,135,314 6,640,314 Thereafter 567,657 Thereafter 567,657 8,335,000 $ 2,436,002 $ 10,771,002 $ Coupons due on 159 115 Exhibit I-7 CITY OF LAKE FOREST, ILLINOIS General Obligation Bonds – 2009 Series April 30, 2013 Date of issue: May 14, 2009 Date of maturity: December 15, 2029 Authorized issue: $ 3,680,000 Denomination of bonds: $ 5,000 Interest rate: 2.00 - 4.10 % Interest dates: June 15 and December 15 Payable at: Wells Fargo Bank Chicago, Illinois Redeemable annually on December 15 Amount 2013 165,000 $ 2014 170,000 2015 170,000 2016 175,000 2017 180,000 Thereafter 2,500,000 3,360,000 $ Bond Principal and Interest Requirements Tax levy Tax levy year Principal Interest Total June 15 Amount December 15 Amount 2012 165,000 $ 113,145 $ 278,145 $ 2013 56,572 $ 2013 56,573 $ 2013 170,000 109,845 279,845 2014 54,922 2014 54,923 2014 170,000 106,445 276,445 2015 53,222 2015 53,223 2015 175,000 102,620 277,620 2016 51,310 2016 51,310 2016 180,000 98,245 278,245 2017 49,122 2017 49,123 Thereafter 2,500,000 630,943 3,130,943 Thereafter 315,471 Thereafter 315,472 3,360,000 $ 1,161,243 $ 4,521,243 $ Coupons due on 160 116 Exhibit I-8 CITY OF LAKE FOREST, ILLINOIS General Obligation Bonds – 2010 Series A April 30, 2013 Date of issue: May 12, 2010 Date of maturity: December 15, 2015 Authorized issue:9,665,000$ Denomination of bonds:5,000$ Interest rate:3.00% Interest dates:June 15 and December 15 Payable at:Wells Fargo Bank Chicago, Illinois Redeemable annually on December 15 Amount 2015 9,665,000 $ 9,665,000 $ Bond Principal and Interest Requirements Tax levy Tax levy year Principal Interest Total June 15 Amount December 15 Amount 2012 -$ 289,950 $ 289,950 $ 2013 144,975 $ 2013 144,975 $ 2013 - 289,950 289,950 2014 144,975 2014 144,975 2014 9,665,000 289,950 9,954,950 2015 144,975 2015 144,975 9,665,000 $ 869,850 $ 10,534,850 $ Coupons due on 161 117 Exhibit I-9 CITY OF LAKE FOREST, ILLINOIS General Obligation Bonds – 2010 Series B April 30, 2013 Date of issue: May 12, 2010 Date of maturity: December 15, 2032 Authorized issue:3,000,000$ Denomination of bonds:5,000$ Interest rate:5.75% Interest dates:June 15 and December 15 Payable at:Wells Fargo Bank Chicago, Illinois Redeemable annually on December 15 Amount 2029 540,000 $ 2030 780,000 2031 820,000 2032 860,000 3,000,000 $ Bond Principal and Interest Requirements Tax levy Tax levy year Principal Interest Total June 15 Amount December 15 Amount 2012 -$ 172,500 $ 172,500 $ 2013 86,250 $ 2013 86,250 $ 2013 - 172,500 172,500 2014 86,250 2014 86,250 2014 - 172,500 172,500 2015 86,250 2015 86,250 2015 - 172,500 172,500 2016 86,250 2016 86,250 2016 - 172,500 172,500 2017 86,250 2017 86,250 Thereafter 3,000,000 2,357,500 5,357,500 Thereafter 1,178,750 Thereafter 1,178,750 3,000,000 $ 3,220,000 $ 6,220,000 $ Coupons due on 162 118 Exhibit I-10 CITY OF LAKE FOREST, ILLINOIS General Obligation Bonds – 2010 Series C April 30, 2013 Date of issue: May 12, 2010 Date of maturity: December 15, 2029 Authorized issue: 5,425,000$ Denomination of bonds: 5,000$ Interest rate: 3.00 - 5.50% Interest dates: June 15 and December 15 Payable at: Wells Fargo Bank Chicago, Illinois Redeemable annually on December 15 Amount 2015 300,000 $ 2016 195,000 2017 210,000 2018 225,000 2019 215,000 Thereafter 4,280,000 5,425,000 $ Bond Principal and Interest Requirements Tax levy Tax levy year Principal Interest Total June 15 Amount December 15 Amount 2012 -$ 259,311 $ 259,311 $ 2013 129,656 $ 2013 129,655 $ 2013 - 259,311 259,311 2014 129,656 2014 129,655 2014 300,000 259,311 559,311 2015 129,656 2015 129,655 2015 195,000 250,311 445,311 2016 125,156 2016 125,155 2016 210,000 243,974 453,974 2017 121,987 2017 121,987 Thereafter 4,720,000 1,680,935 6,400,935 Thereafter 840,468 Thereafter 840,467 5,425,000 $ 2,953,153 $ 8,378,153 $ Coupons due on 163 119 Exhibit I-11 CITY OF LAKE FOREST, ILLINOIS General Obligation Bonds – 2011 Series A April 30, 2013 Date of issue: September 6, 2011 Date of maturity: December 15, 2021 Authorized issue: 2,415,000$ Denomination of bonds: 5,000$ Interest rate: 1.50 - 3.00% Interest dates: June 15 and December 15 Payable at: Wells Fargo Bank Chicago, Illinois Redeemable annually on December 15 Amount 2013 480,000 $ 2014 480,000 2015 325,000 2016 120,000 2017 125,000 Thereafter 400,000 1,930,000 $ Bond Principal and Interest Requirements Tax levy Tax levy year Principal Interest Total June 15 Amount December 15 Amount 2012 480,000 $ 36,863 $ 516,863 $ 2013 18,432 $ 2013 18,431 $ 2013 480,000 27,263 507,263 2014 13,632 2014 13,631 2014 325,000 20,063 345,063 2015 10,032 2015 10,031 2015 120,000 15,188 135,188 2016 7,594 2016 7,594 2016 125,000 12,788 137,788 2017 6,394 2017 6,394 Thereafter 400,000 20,175 420,175 Thereafter 10,088 Thereafter 10,087 1,930,000 $ 132,340 $ 2,062,340 $ Coupons due on 164 120 Exhibit I-12 CITY OF LAKE FOREST, ILLINOIS General Obligation Bonds – 2011 Series B April 30, 2013 Date of issue: September 6, 2011 Date of maturity: December 15, 2023 Authorized issue: 24,825,000$ Denomination of bonds: 5,000$ Interest rate: 1.00 - 3.00% Interest dates: June 15 and December 15 Payable at: Wells Fargo Bank Chicago, Illinois Redeemable annually on December 15 Amount 2013 1,870,000 $ 2014 1,920,000 2015 1,955,000 2016 2,215,000 2017 2,270,000 Thereafter 14,175,000 24,405,000 $ Bond Principal and Interest Requirements Tax levy Tax levy year Principal Interest Total June 15 Amount December 15 Amount 2012 1,870,000 $ 592,700 $ 2,462,700 $ 2013 296,350 $ 2013 296,350 $ 2013 1,920,000 555,300 2,475,300 2014 277,650 2014 277,650 2014 1,955,000 516,900 2,471,900 2015 258,450 2015 258,450 2015 2,215,000 477,800 2,692,800 2016 238,900 2016 238,900 2016 2,270,000 433,500 2,703,500 2017 216,750 2017 216,750 Thereafter 14,175,000 1,343,100 15,518,100 Thereafter 671,550 Thereafter 671,550 24,405,000 $ 3,919,300 $ 28,324,300 $ Coupons due on 165 121 CITY OF LAKE FOREST, ILLINOIS Debt Service Fund Combining Schedule of Assets, Liabilities, and Fund Balance April 30, 2013 2003 Special Service Special Service Series D Area 25 Area 26 General General General Obligation Obligation Obligation Bonds Bonds Bonds Cash and cash equivalents 803,765 $ 2,598 $ -$ Receivables (net of allowance for uncollectibles): Property taxes - 78,128 21,374 Total assets 803,765 $ 80,726 $ 21,374 $ Liabilities: Deferred revenue – property taxes -$ 78,128 $ 21,374 $ Due to other funds - - 819 Total liabilities - 78,128 22,193 Fund balance – restircted for debt service 803,765 2,598 (819) Total liabilities and fund balance 803,765 $ 80,726 $ 21,374 $ Liabilities and Fund Balance Assets 166 122 Exhibit I-13 Special Service 2004 Area 29 Series B 2008 2009 2010 General General General General General Obligation Obligation Obligation Obligation Obligation Bonds Bonds Bonds Bonds Bonds Total -$ 1,440,488 $ 139,247 $ 11,569 $ 18,015 $ 2,415,682 $ 144,786 - 831,882 278,062 553,169 1,907,401 144,786 $ 1,440,488 $ 971,129 $ 289,631 $ 571,184 $ 4,323,083 $ 144,786 $ -$ 831,882 $ 278,062 $ 553,169 $ 1,907,401 $ 7,589 - - - - 8,408 152,375 - 831,882 278,062 553,169 1,915,809 (7,589) 1,440,488 139,247 11,569 18,015 2,407,274 144,786 $ 1,440,488 $ 971,129 $ 289,631 $ 571,184 $ 4,323,083 $ 167 123 CITY OF LAKE FOREST, ILLINOIS Debt Service Fund Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance Year ended April 30, 2013 2003 Special Service Special Service Series D Area 25 Area 26 General General General Obligation Obligation Obligation Bonds Bonds Bonds Revenues: Taxes: Property taxes -$ 82,718 $ 22,215 $ Grants and contributions - IRS rebate - - - Investment income 3,624 139 47 Total revenues 3,624 82,857 22,262 Expenditures: General government 500 7,589 7,589 Debt service: Principal 205,000 55,000 13,435 Interest 14,124 27,218 8,282 Total expenditures 219,624 89,807 29,306 Excess (deficiency) of revenues over expenditures (216,000) (6,950) (7,044) Other financing sources: Transfers in 250,985 - - Net change in fund balance 34,985 (6,950) (7,044) Fund balance – beginning of year 768,780 9,548 6,225 Fund balance – end of year 803,765 $ 2,598 $ (819) $ 168 124 Exhibit I-14 Special Service 2004 Area 29 Series B 2008 2009 2010 General General General General General Obligation Obligation Obligation Obligation Obligation Bonds Bonds Bonds Bonds Bonds Total 158,368 $ -$ 855,812 $ 282,932 $ 563,526 $ 1,965,571 $ - - - - 168,384 168,384 184 6,404 1,667 380 416 12,861 158,552 6,404 857,479 283,312 732,326 2,146,816 7,589 1,000 500 500 1,500 26,767 93,301 191,000 525,000 160,000 - 1,242,736 66,151 115,880 314,981 116,345 721,761 1,384,742 167,041 307,880 840,481 276,845 723,261 2,654,245 (8,489) (301,476) 16,998 6,467 9,065 (507,429) 900 346,599 - - - 598,484 (7,589) 45,123 16,998 6,467 9,065 91,055 - 1,395,365 122,249 5,102 8,950 2,316,219 (7,589) $ 1,440,488 $ 139,247 $ 11,569 $ 18,015 $ 2,407,274 $ 169 STATISTICAL SECTION (Unaudited) 170 Statistical Section This part of the City of Lake Forest comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. Contents Page Financial Trends 125-133 These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity 134-141 These schedules contain information to help the reader assess the factors affecting the City's ability to generate its property and sales taxes. Debt Capacity 142-146 These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information 147-149 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place and to help make comparisons over time and with other governments. Operating Information 150-153 These schedules contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activities it performs. Sources:Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. The City implemented Statement 34 in 2004; schedules presenting government-wide information include information beginning in that year. 171 125 CITY OF LAKE FOREST, ILLINOIS Net Position by Component Last Ten Fiscal Years 2004 2005 2006 2007 Governmental Activities Net investment in capital assets 159,438,322$ 157,490,638$ 166,151,385$ 163,863,237$ Restricted 2,450,438 2,997,174 3,568,910 4,010,519 Unrestricted 13,987,875 18,310,053 16,476,341 26,409,165 Total Governmental Activities 175,876,635$ 178,797,865$ 186,196,636$ 194,282,921$ Business-type Activities Net investment in capital assets 35,742,886$ 41,401,968$ 43,183,127$ 44,504,668$ Restricted - - - - Unrestricted 16,127,338 11,917,654 11,105,554 11,824,329 Total Business-type Activities 51,870,224$ 53,319,622$ 54,288,681$ 56,328,997$ Total Net investment in capital assets 195,181,208$ 198,892,606$ 209,334,512$ 208,367,905$ Restricted 2,450,438 2,997,174 3,568,910 4,010,519 Unrestricted 30,115,213 30,227,707 27,581,895 38,233,494 Total Primary Government 227,746,859$ 232,117,487$ 240,485,317$ 250,611,918$ Data Source Audited Financial Statements Fiscal Year 172 126 Table 1 2008 2009 2010 2011 2012 2013 172,325,675$ 193,768,992$ 193,225,047$ 192,568,460$ 190,779,593$ 187,500,531$ 3,978,855 3,319,974 3,001,515 3,645,693 16,599,487 16,064,099 28,748,888 25,867,536 25,090,240 29,683,545 19,550,532 21,126,818 205,053,418$ 222,956,502$ 221,316,802$ 225,897,698$ 226,929,612$ 224,691,448$ 44,932,466$ 37,184,702$ 38,075,853$ 37,709,887$ 36,753,670$ 36,077,752$ - - - - - - 12,087,202 9,577,076 8,617,858 8,513,924 8,918,142 9,880,856 57,019,668$ 46,761,778$ 46,693,711$ 46,223,811$ 45,671,812$ 45,958,608$ 217,258,141$ 230,953,694$ 231,300,900$ 230,278,347$ 227,533,263$ 223,578,283$ 3,978,855 3,319,974 3,001,515 3,645,693 16,599,487 16,064,099 40,836,090 35,444,612 33,708,098 38,197,469 28,468,674 31,007,674 262,073,086$ 269,718,280$ 268,010,513$ 272,121,509$ 272,601,424$ 270,650,056$ Fiscal Year 173 127 CITY OF LAKE FOREST, ILLINOIS Changes in Net Position Last Ten Fiscal Years 2004 2005 2006 2007 Expenses Governmental Activities General Government 8,814,921 $ 10,248,966 $ 10,621,820 $ 10,026,323 $ Highways and Streets 5,384,798 9,702,235 6,195,805 7,102,425 Sanitation 1,926,662 1,949,856 2,053,718 2,225,808 Culture and recreation 8,228,552 7,884,543 8,450,431 9,403,755 Public safety 10,014,765 10,224,612 11,081,841 11,557,020 Public improvements and other 2,519,628 - - - Interest 1,152,352 1,245,364 1,218,802 968,963 Total Governmental Activities Expenses 38,041,678 41,255,576 39,622,417 41,284,294 Business-type Activities Waterworks and sewerage 6,287,674 6,226,893 7,347,680 7,891,031 Golf 1,453,481 1,320,941 1,411,572 1,545,070 Paid Parking 740,922 707,319 684,855 767,413 Total Business-type Activities Expenses 8,482,077 8,255,153 9,444,107 10,203,514 Total Primary Government Expenses 46,523,755 $ 49,510,729 $ 49,066,524 $ 51,487,808 $ Program Revenues Governmental Activities Charges for Services General Government 5,497,280 $ 4,966,614 $ 6,022,462 $ 5,094,588 $ Highways and Streets - 1,502,928 145,245 1,576,654 Sanitation 152,317 134,242 189,943 293,410 Culture and recreation 3,706,758 4,508,488 4,273,157 5,458,842 Public safety 1,156,868 1,368,304 1,357,067 1,387,792 Operating Grants and Contributions 615,152 956,752 1,407,815 1,284,897 Capital Grants and Contributions 4,339,612 524,811 1,657,563 - Total Governmental Activities Program Revenues 15,467,987 13,962,139 15,053,252 15,096,183 Business-type Activities Charges for Services Waterworks and sewerage 6,223,091 6,723,387 7,668,972 6,944,190 Golf 1,445,152 1,382,190 1,373,637 1,702,287 Paid Parking 603,707 1,007,204 781,213 1,007,654 Operating Grants and Contributions - - - 217,249 Capital Grants and Contributions 1,746,614 312,372 154,966 854,027 Total Business-type Activities Program Revenues 10,018,564 9,425,153 9,978,788 10,725,407 Total Primary Government Program Revenues 25,486,551 $ 23,387,292 $ 25,032,040 $ 25,821,590 $ Net (Expense) Revenue Governmental Activities (22,573,691) $ (27,293,437) $ (24,569,165) $ (26,188,111) $ Business-type Activities 1,536,487 1,170,000 534,681 521,893 Total Primary Government Net (Expense) Revenue (21,037,204) $ (26,123,437) $ (24,034,484) $ (25,666,218) $ Fiscal Year 174 128 Table 2 2008 2009 2010 2011 2012 2013 11,035,000 $ 14,928,550 $ 13,974,412 $ 13,321,852 $ 12,080,189 $ 16,176,326 $ 8,821,953 7,911,604 9,469,570 8,687,404 8,304,860 7,536,444 2,310,966 2,169,302 2,183,373 2,349,916 2,568,820 2,512,559 8,812,293 9,430,847 9,589,857 9,402,752 9,469,832 10,352,252 12,348,729 12,623,300 13,116,738 13,398,718 13,583,116 13,748,855 - - - - - - 808,253 978,029 1,097,805 1,424,317 1,420,087 1,362,715 44,137,194 48,041,632 49,431,755 48,584,959 47,426,904 51,689,151 8,228,975 7,659,138 7,882,904 8,008,372 7,985,394 8,287,297 1,562,520 1,490,115 1,345,437 1,393,869 1,371,380 1,459,394 757,200 - - - - - 10,548,695 9,149,253 9,228,341 9,402,241 9,356,774 9,746,691 54,685,889 $ 57,190,885 $ 58,660,096 $ 57,987,200 $ 56,783,678 $ 61,435,842 $ 5,249,766 $ 4,980,144 $ 4,822,344 $ 4,455,844 $ 4,771,863 $ 4,838,151 $ 929,199 1,239,586 809,661 693,029 846,366 753,487 295,658 192,848 104,158 171,030 81,577 58,564 3,831,855 4,197,023 4,121,592 3,650,467 3,392,303 3,342,913 1,567,944 1,589,647 1,540,927 1,930,715 1,678,032 1,861,619 790,979 684,872 1,413,819 846,781 1,433,791 1,777,734 5,301,494 9,033,429 925,524 5,982,721 360,407 25,000 17,966,895 21,917,549 13,738,025 17,730,587 12,564,339 12,657,468 6,893,939 6,589,780 7,048,854 7,344,740 7,477,637 8,598,079 1,430,875 1,413,732 1,333,879 1,264,624 1,238,016 1,320,455 1,016,991 - - - - - - - - - - - 1,367,797 829,447 97,724 162,051 - - 10,709,602 8,832,959 8,480,457 8,771,415 8,715,653 9,918,534 28,676,497 $ 30,750,508 $ 22,218,482 $ 26,502,002 $ 21,279,992 $ 22,576,002 $ (26,170,299) $ (26,124,083) $ (35,693,730) $ (30,854,372) $ (34,862,565) $ (39,031,683) $ 160,907 (316,294) (747,884) (630,826) (641,121) 171,843 (26,009,392) $ (26,440,377) $ (36,441,614) $ (31,485,198) $ (35,503,686) $ (38,859,840) $ Fiscal Year 175 129 CITY OF LAKE FOREST, ILLINOIS Changes in Net Position (Continued) Last Ten Fiscal Years 2004 2005 2006 2007 General Revenues and Other Changes in Net Position Governmental Activities Taxes Property taxes 19,846,632$ 19,846,632$ 20,858,317$ 21,287,422$ Sales 2,900,860 2,900,860 3,058,396 3,271,452 Income and Use 1,747,505 1,747,505 1,826,030 1,989,187 Telecommunications and Utility 4,066,843 4,066,843 4,434,227 4,198,439 Real Estate Transfer Tax - - - 1,259,295 Other 388,059 388,059 356,466 463,689 Investment Earnings 861,935 861,935 1,434,500 1,991,995 Gain on sale of capital assets 470,463 470,463 - - Miscellaneous - - - 805,436 Transfers (67,630) (67,630) - (992,519) Total Governmental Activities 30,214,667 30,214,667 31,967,936 34,274,396 Business-type Activities Investment Earnings 211,768 211,768 434,378 525,904 Miscellaneous - - - - Transfers 67,630 67,630 - 992,519 Total Business-type Activities 279,398 279,398 434,378 1,518,423 Total Primary Government 30,494,065$ 30,494,065$ 32,402,314$ 35,792,819$ Change in Net Position Governmental Activities 2,921,230$ 2,921,230$ 7,398,771$ 8,086,285$ Business-type Activities 1,449,398 1,449,398 969,059 2,040,316 Total Primary Government Change in Net Position 4,370,628$ 4,370,628$ 8,367,830$ 10,126,601$ Data Source Audited Financial Statements Fiscal Year 176 130 Table 2 2008 2009 2010 2011 2012 2013 22,324,863$ 23,067,216$ 24,383,716$ 24,739,956$ 25,428,378$ 25,051,411$ 3,118,339 3,010,457 2,392,497 2,554,772 2,577,304 3,183,479 2,175,196 2,018,177 1,762,425 1,849,046 1,938,686 2,131,711 4,454,442 4,407,235 3,967,398 3,968,072 3,981,548 3,736,586 1,984,052 962,840 878,925 1,279,935 1,215,407 1,209,113 489,018 391,347 372,640 422,080 492,746 493,418 1,771,629 35,853 852,245 573,508 264,432 491,196 - - - - - - 627,188 22,729 60,000 150,049 33,724 573,705 (3,931) 10,111,313 (615,816) (102,150) (37,746) (77,100) 36,940,796 44,027,167 34,054,030 35,435,268 35,894,479 36,793,519 525,833 169,717 64,001 58,776 51,376 37,853 - - - - - - 3,931 (10,111,313) 615,816 102,150 37,746 77,100 529,764 (9,941,596) 679,817 160,926 89,122 114,953 37,470,560$ 34,085,571$ 34,733,847$ 35,596,194$ 35,983,601$ 36,908,472$ 10,770,497$ 17,903,084$ (1,639,700)$ 4,580,896$ 1,031,914$ (2,238,164)$ 690,671 (10,257,890) (68,067) (469,900) (551,999) 286,796 11,461,168$ 7,645,194$ (1,707,767)$ 4,110,996$ 479,915$ (1,951,368)$ Fiscal Year 177 131 CITY OF LAKE FOREST, ILLINOIS Table 3Fund Balances of Governmental FundsLast Ten Fiscal Years2004 2005 2006 2007 2008 2009 2010 2011 2012* 2013General FundNonspendable2,159,403$ 2,775,449$ Restricted957,420 957,420 Unassigned10,601,190 11,020,723 Reserved 1,265,475$ 585,232$ 510,960$ 470,008$ 1,041,187$ 2,218,570$ 1,071,068$ 2,988,884$ Unreserved 9,367,525 11,178,843 6,506,164 8,534,147 9,585,445 8,618,251 9,815,220 9,239,135 Total General Fund 10,633,000$ 11,764,075$ 7,017,124$ 9,004,155$ 10,626,632$ 10,836,821$ 10,886,288$ 12,228,019$ 13,718,013$ 14,753,592$ All Other Governmental FundsNonspendable43,333$ 43,333$ Restricted16,171,794 15,605,203 Assigned1,591,600 1,598,819 ReservedSpecial Revenue Funds 635,625$ 407,587$ 121,299$ 89,809$ 130,173$ 128,516$ 43,306$ 4,333$ Capital Project Funds 84,645 69,058 - - - - - - Debt Service Funds 1,300,000 1,915,242 2,381,564 2,849,336 2,708,268 2,632,215 2,839,264 2,808,826 Unreserved, reported inSpecial Revenue Funds 3,323,478 3,885,249 5,531,312 8,006,257 8,063,766 6,747,544 8,209,263 9,869,178 Capital Project Funds 3,028,546 10,123,851 8,048,381 8,898,968 17,815,488 6,538,074 3,171,421 6,189,372 Debt Service Funds- - - - - - - - Total All Other Governmental Funds8,372,294$ 16,400,987$ 16,082,556$ 19,844,370$ 28,717,695$ 16,046,349$ 14,263,254$ 18,871,709$ 17,806,727$ 17,247,355$ Total All Governmental 19,005,294$ 28,165,062$ 23,099,680$ 28,848,525$ 39,344,327$ 26,883,170$ 25,149,542$ 31,099,728$ 31,524,740$ 32,000,947$ Data SourceAudited Financial Statements* The City implemented GASB Statement #54 in FY 2012.Fiscal Year 178 132 CITY OF LAKE FOREST, ILLINOISTable 42004 2005 2006 2007 2008 2009 2010 2011 2012 2013RevenuesProperty taxes 19,057,023 $ 19,846,632 $ 20,858,317 $ 21,287,422 $ 22,324,863 $ 23,067,216 $ 24,383,716 $ 24,739,956 $ 25,428,378 $ 25,051,411 $ Other taxes 8,701,692 9,103,267 9,675,119 11,182,063 12,221,047 10,790,056 9,433,885 10,073,905 10,205,691 10,754,307 Intergovernmental revenues 615,152 1,254,231 1,407,815 948,449 790,979 684,872 1,304,368 523,185 589,960 612,357 Grants and contributions - - - - - - 706,250 1,306,195 1,039,737 1,190,377 Charges for services 6,133,220 6,946,174 7,422,055 8,416,183 7,193,242 8,295,760 7,844,119 7,427,784 7,028,800 7,319,673 Licenses and permits 2,450,163 2,933,400 2,488,811 2,483,638 2,345,931 2,117,774 2,135,888 2,246,336 2,475,739 2,450,194 Fines and forfeitures 350,989 387,178 461,909 357,556 469,208 387,629 372,924 409,539 372,607 368,941 Investment income 505,696 832,709 1,358,266 1,866,217 1,673,038 (11,695) 815,520 531,666 225,225 462,579 Miscellaneous revenue 1,324,563 2,114,370 1,419,807 2,890,358 1,870,927 1,420,815 1,374,476 1,074,576 730,813 1,225,082 Total Revenues39,138,498 43,417,961 45,092,099 49,431,886 48,889,235 46,752,427 48,371,146 48,333,142 48,096,950 49,434,921 ExpendituresGeneral government8,218,581 9,739,170 9,158,599 9,533,418 10,569,268 12,778,200 12,226,189 11,929,446 10,313,031 14,242,768 Highways and streets1,668,162 1,682,996 1,770,853 1,979,122 2,332,972 2,567,220 3,897,758 2,449,911 2,139,656 2,044,225 Sanitation1,853,561 1,845,302 1,943,042 2,023,726 2,125,284 2,096,044 2,056,528 2,194,511 2,228,844 2,193,091 Culture and recreation7,326,207 7,253,560 7,662,467 8,174,644 7,925,598 8,511,075 8,816,962 8,559,331 8,463,547 9,282,695 Public safety10,137,485 10,099,843 10,895,658 11,341,849 12,169,723 12,820,200 13,062,453 13,291,727 13,723,801 13,826,732 Pension fund contributions- - - - - - - - - - Public improvements and other2,519,580 - - - - - - - - - Capital outlay3,236,984 6,253,592 12,940,175 5,466,571 8,324,272 28,537,234 11,376,490 6,348,572 6,641,923 4,586,574 Debt ServicePrincipal3,990,000 4,376,212 5,013,943 4,774,827 4,797,104 2,954,681 2,877,662 15,659,313 2,531,876 1,377,736 Interest800,699 827,160 982,744 881,087 781,529 694,355 1,173,967 1,284,755 1,667,372 1,392,342 Bond issuance costs62,370 64,640 - - - - - - - - Total Expenditures39,813,629 42,142,475 50,367,481 44,175,244 49,025,750 70,959,009 55,488,009 61,717,566 47,710,050 48,946,163 Excess of Revenues over (under)Expenditures(675,131) 1,275,486 (5,275,382) 5,256,642 (136,515) (24,206,582) (7,116,863) (13,384,424) 386,900 488,758 (Continued)Changes in Fund Balances of Governmental FundsLast Ten Fiscal YearsFiscal Year179 133 CITY OF LAKE FOREST, ILLINOISTable 42004 2005 2006 2007 2008 2009 2010 2011 2012 2013Other financing Sources (Uses)Transfers in 2,039,032 $ 3,350,766 $ 9,713,436 $ 2,893,460 $ 3,201,175 $ 5,425,090 $ 1,847,105 $ 1,844,410 $ 2,296,270 $ 2,829,243 $ Transfers out (2,280,752) (3,418,396) (9,713,436) (3,885,979) (3,041,224) (4,454,665) (2,462,921) (1,946,560) (2,334,016) (2,906,343) Bonds issued 3,676,500 7,200,000 - - 9,750,000 - 3,680,000 18,090,000 - - Installment note proceeds - - - - - 10,700,000 2,300,000 - - - Loan proceeds 880,000 - - - - - - - - - Premium (discount) on bondsissued (7,818) (16,631) - - (50,668) - 19,051 279,130 120,828 - Proceeds from refunding G.O. bonds - - - - - - - - 5,690,000 - Payments for refunding G.O. bonds - - - - - - - - (5,769,025) - Sale of capital assets - 768,543 210,000 1,484,722 773,034 75,000 - 1,067,630 34,055 64,549 Total Other Financing Sources (Uses) 4,306,962 7,884,282 210,000 492,203 10,632,317 11,745,425 5,383,235 19,334,610 38,112 (12,551) Net Change in Fund Balances3,631,831 $ 9,159,768 $ (5,065,382) $ 5,748,845 $ 10,495,802 $ (12,461,157) $ (1,733,628) $ 5,950,186 $ 425,012 $ 476,207 $ Debt Service as a Percentage of Noncapital Expenditures13.29%14.50%16.02%14.61%12.60%8.08% 8.62% 8.62% 8.31% 5.85%Data SourceAudited Financial StatementsChanges in Fund Balances of Governmental Funds (Continued)Last Ten Fiscal YearsFiscal Year 180 134 CITY OF LAKE FOREST, ILLINOISTable 5Assessed Value and Actual Value of Taxable PropertyLast Ten Levy Years Total Estimated Estimated Tax Total Taxable Direct Actual ActualLevy Residential Commercial Industrial Other Increment Assessed Tax Taxable TaxableYear Property Property Property Property Financing Value Rate Value Value20031,866,407,716$ 167,903,070$ 971,387$ 3,935,325$ 50,388,361$ 2,089,605,859$ 0.9940 6,268,817,577$ 33.333% 20042,030,461,408 167,553,300 1,016,864 4,424,771 49,762,611 2,253,218,954 0.9630 6,759,656,862 33.333% 2005 2,229,037,071 171,210,021 62,957 4,476,207 52,512,948 2,457,299,204 0.9110 7,371,897,612 33.333% 2006 2,453,626,272 187,607,513 64,953 5,407,000 58,493,629 2,705,199,367 0.8690 8,115,598,101 33.333%2007 2,610,727,055 191,390,427 65,007 5,765,126 59,284,794 2,867,232,409 0.8510 8,601,697,227 33.333%2008 2,674,566,048 217,608,832 79,283 5,817,809 60,603,515 2,958,675,487 0.8700 8,876,026,461 33.333%2009 2,609,955,147 214,117,162 71,603 5,887,945 60,662,651 2,890,694,508 0.9020 8,672,083,524 33.333%2010 2,452,291,451 203,193,623 66,933 5,871,505 56,123,585 2,717,547,097 0.9900 8,152,641,291 33.333%2011 2,302,061,004 203,074,638 70,382 5,409,080 54,464,919 2,565,080,023 1.0350 7,695,240,069 33.333%2012 2,166,702,992 207,360,589 65,556 3,918,002- 2,378,047,139 1.1480 7,134,141,417 33.333%Data SourceOffice of the County ClerkNote : Property is assessed at 33 1/3% of actual value; property tax rates per $100 of assessed valuation.181 135 CITY OF LAKE FOREST, ILLINOIS Table 6Based on Shields Township2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Bonds 0.127 0.118 0.095 0.088 0.083 0.086 0.090 0.096 0.068 0.071Corporate 0.493 0.481 0.461 0.449 0.443 0.449 0.405 0.446 0.483 0.544Firemens' Pension 0.023 0.023 0.023 0.023 0.025 0.028 0.034 0.037 0.041 0.046IMRF 0.061 0.058 0.055 0.052 0.051 0.052 0.054 0.059 0.032 0.035Library 0.112 0.108 0.105 0.102 0.101 0.101 0.105 0.116 0.126 0.141Library Sites & Building 0.014 0.014 0.013 0.012 0.011 0.013 0.013 0.014 0.015 0.016Parks/Park Maintenance 0 0.000 0.000 0.000 0.052 0.050 0.097 0.106 0.114 0.123Playground & Recreation 0.128 0.116 0.112 0.098 0.038 0.042 0.043 0.046 0.050 0.055Police Pension 0.036 0.034 0.036 0.035 0.037 0.039 0.050 0.057 0.060 0.066Recreation for Handicapped Rec. 0 0.011 0.011 0.010 0.010 0.010 0.011 0.013 0.014 0.016Social Security0.032 0.035City Direct Rates *0.994 0.963 0.911 0.869 0.851 0.870 0.902 0.990 1.035 1.148Overlapping RatesCollege of Lake County 0.201 0.200 0.197 0.195 0.192 0.196 0.200 0.218 0.240 0.272County of Lake0.490 0.465 0.454 0.450 0.444 0.453 0.4640.505 0.554 0.608Lake County Forest Preserve0.225 0.219 0.210 0.204 0.201 0.199 0.2000.198 0.201 0.212North Shore Sanitary District0.144 0.139 0.132 0.125 0.120 0.121 0.1240.136 0.150 0.150School District 67, Elem.1.101 1.051 1.013 0.964 0.944 0.965 0.9981.095 1.186 1.322School District 115, High School1.045 1.003 0.965 0.961 0.959 1.001 1.0691.101 1.191 1.322Township0.053 0.052 0.051 0.050 0.050 0.050 0.0480.039 0.043 0.036Township Road and Bridge0.030 0.018 0.018 0.020 0.016 0.019 0.0200.023 0.026 0.029Total tax rate4.283 4.110 3.951 3.838 3.777 3.874 4.025 4.305 4.626 5.099 City's share of total tax rate23% 23% 23% 23% 23% 22% 22% 23% 22% 23%Data SourceOffice of the County Clerk - Shields TownshipLake Forest lies within five townships - Moraine, Shields, Vernon, West Deerfield and Libertyville. Therefore, the tax rates for support of the Township government and for theTownship Road and Bridge purposes vary. Parts of Shields Township in Lake Forest lie in the Lake Bluff Park District. All of Moraine Township is in Lake Forest andparts of Shields and West Deerfield Townships in Lake Forest lie in the North Shore Sanitary District.* Excludes rates for the Special Service Areas* Includes the City's component unit, Lake Forest LibraryProperty Tax Rates - Direct and Overlapping GovernmentsLast Ten Levy Years182 136 CITY OF LAKE FOREST, ILLINOIS Table 7 Percentage Percentage of Total of Total City City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Valuation Value Rank Valuation Hospira Inc 18,771,220$ 1 0.79% Lake Products, Inc. 13,929,128 2 0.59% The Presbyterian Home 13,749,270 3 0.58% 23,762,231$ 1 1.10% CBIZ Property Tax Solutions 11,196,536 4 0.47% 11,761,943 2 0.60% Trustmark Insurance Co 7,750,771 5 0.33% 8,078,870 5 0.40% Lake Forest Landmark Co. LLC 6,962,512 6 0.29% 8,705,102 4 0.40% Northwestern Lake Forest Hospital 6,918,325 7 0.29% 7,449,790 7 0.40% Lake Forest Landmark II 5,928,948 8 0.25% Shawgate Lake Forest, LLC 5,440,583 9 0.23% Chicago Bears Football Club, Inc 5,402,161 10 0.23% 4,100,911 10 0.20% Tap Holdings Inc.10,428,753 3 0.50% Abbott Laboratories 7,848,275 6 0.40% Brunswick Corporation 4,808,506 9 0.20% Shawgate- Broadacre 4,954,715 8 0.20% 96,049,454$ 4.04% 91,899,096$ 4.40% Data Source Office of the County Clerk Note: Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers contain multiple parcels, and it is possible that some parcels and their valuations have been overlooked. 2013 Column is 2012 Assessed Valuation 2004 Column is 2003 Assessed Valuation Principal Property Taxpayers Current Year and Nine Years Ago 2013 2004 183 137 CITY OF LAKE FOREST, ILLINOIS Table 8 Property Tax Levies and Collections Last Ten Levy Years Levy Percentage Year Tax Levied Amount of Levy 2003 20,269,822$ 20,213,624$ 99.72% 2004 21,219,092 21,197,444 99.90% 2005 21,907,603 21,773,228 99.39% 2006 22,999,873 22,979,703 99.91% 2007 23,895,634 23,863,170 99.86% 2008 25,213,226 25,174,923 99.85% 2009 25,526,887 25,486,745 99.84% 2010 26,348,093 26,312,509 99.86% 2011 25,984,866 25,911,250 99.72% 2012 27,299,981 N/A N/A Data Source Lake County Treasurer and City Note: Property is assessed at 33 1/3 % of actual value. Collections for prior tax years are immaterial. Collected within the Fiscal Year after the Levy 184 138 CITY OF LAKE FOREST, ILLINOIS Table 92003 2004 2005 2006 2007 2008 2009 2010 2011 2012General 0.493 0.481 0.461 0.449 0.443 0.449 0.405 0.446 0.483 0.5440.061 0.058 0.055 0.052 0.051 0.052 0.054 0.059 0.064 0.070Firefighter Pension0.023 0.023 0.023 0.023 0.025 0.028 0.034 0.037 0.041 0.046Police Pension0.036 0.034 0.036 0.035 0.037 0.039 0.050 0.057 0.060 0.066Parks and Recreation0.128 0.116 0.112 0.098 0.090 0.092 0.140 0.152 0.164 0.178Special Recreation- 0.011 0.011 0.010 0.010 0.010 0.011 0.013 0.014 0.016General Obligation Bond 1998 B0.031 0.028 0.026 0.024 0.023 - - - - - General Obligation Bond 20000.022 0.020 0.020 0.025 0.023 0.023 0.023 0.025 0.000 - General Obligation Bond 2001 B0.006 0.006 0.005 0.005 0.004 0.004 0.004 0.004 0.000 - General Obligation Bond 2002 B0.054 0.051 0.031 - - - - - - - General Obligation Bond 2003 A0.014 0.013 0.013 0.034 0.033 0.035 0.036 - - - General Obligation Bond 2008- - - - - 0.024 0.022 0.032 0.034 0.036General Obligation Bond 2009- - - - - - 0.005 0.011 0.011 0.012General Obligation Bond 2010- - - - - - 0.000 0.024 0.023 0.023Total tax rate0.868 0.841 0.793 0.755 0.739 0.756 0.784 0.860 0.894 0.991Data SourceOffice of the County Clerk The tax rate for the City's component unit, Lake Forest Library is excluded from this table.This table excludes the tax rates for the Special Service Areas.IMRF/Social SecurityTax Extensions for City FundsLast Ten Levy Years185 139 CITY OF LAKE FOREST, ILLINOIS Table 10Sales Tax Base and Number of Principal PayersTaxable Sales by Category - .5% Sales TaxLast Ten Calendar Years2003 2004 2005 2006 2007 2008 2009 2010 2011 2012General Merchandise 14,374$ 28,705$ 22,694$ 33,206$ 26,184$ 2,194$ 8,492$ 8,460$ 36,478$ 12,219$ Food 43,407 86,898 88,675 89,536 89,969 97,870 83,567 89,338 90,613 91,999 Drinking and Eating Places 57,236 113,425 124,221 129,149 139,291 147,973 127,679 133,028 140,639 155,188 Apparel 36,595 70,485 68,594 63,083 60,423 54,674 55,300 51,968 53,727 64,317 Furniture & H.H. & Radio 18,509 44,588 57,206 57,996 58,530 51,881 42,526 38,958 10,187 37,536 Lumber, Building, Hardware 21,118 42,130 46,974 38,373 30,834 5,765 20,405 19,010 (6,528) 6,867 Automobile and Filling Stations 20,450 39,402 45,494 48,129 44,478 37,349 27,399 35,443 38,209 38,900 Drugs and Miscellaneous Retail 67,576 126,277 123,674 113,558 116,910 117,787 178,470 91,397 105,512 81,022 Agriculture and All Others 45,369 92,361 102,164 91,488 96,048 100,902 88,052 94,649 97,776 110,446 Manufacturers1,967 43,902 64,286 88,889 102,914 109,291 21,860 14,322 (4,963) - Censored categories- - - - - 29,005 - - - - Total326,601$ 688,173$ 743,982$ 753,407$ 765,581$ 754,691$ 653,750$ 576,573$ 561,650$ 598,494$ Total Number of PayersN/AN/AN/AN/AN/AN/AN/AN/AN/AN/ACity direct sales tax rate0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%Data SourceIllinois Department of RevenueNote: Blank categories have less than 4 taxpayers, therefore no data is shown to protect the confidentiality of individual taxpayers.Effectively July 2003, an additional .5% non home rule sales tax was collected.The City of Lake Forest became a home rule community in November 2004.186 140 CITY OF LAKE FOREST, ILLINOIS Table 11Sales Tax Base and Number of Principal PayersTaxable Sales by Category - 1% Sales TaxLast Ten Calendar Years2003 2004 2005 2006 2007 2008 2009 2010 2011 2012General Merchandise 54,103$ 58,491$ 45,778$ 67,042$ 52,664$ 4,392$ 16,984$ 17,248$ 72,955$ 24,726$ Food600,443 607,508 621,140 621,566 635,560 629,087 562,455 570,803 579,914 585,517 Drinking and Eating Places221,068 229,158 252,171 261,151 285,968 302,523 260,953 271,753 286,472 317,291 Apparel134,835 142,328 137,422 126,196 124,644 109,349 110,600 103,935 107,453 128,633 Furniture & H.H. & Radio73,506 89,219 114,945 115,995 117,060 103,763 85,052 77,915 20,373 75,071 Lumber, Building, Hardware91,831 86,497 94,007 76,746 61,668 11,529 40,810 38,019 (13,037) 13,742 Automobile and Filling Stations 243,898 153,273 165,396 167,847 165,896 130,459 109,080 150,101 138,744 146,865 Drugs and Miscellaneous Retail 420,878 456,475 434,170 425,144 441,773 438,917 546,202 322,376 371,420 400,096 Agriculture and All Others187,102 199,683 219,086 200,515 208,076 219,358 198,803 267,227 254,225 274,807 Manufacturers6,845 88,094 129,053 347,340 205,978 218,715 43,909 28,947 (9,729) - Censored categories- - - - - 58,028 - - - - Total2,034,509$ 2,110,726$ 2,213,168$ 2,409,543$ 2,299,287$ 2,226,120$ 1,974,848$ 1,848,324$ 1,808,790$ 1,966,748$ Total Number of Payers693 743 737 837 849 843 663647637637City direct sales tax rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%Data SourceIllinois Department of RevenueNote: Blank categories have less than 4 taxpayers, therefore no data is shown to protect the confidentiality of individual taxpayers.The categories, Lumber, Bldg. and Hardware and General Merchandise became a censored status in the 2nd quarter of 2008.The category of Furniture & H.H. & Radio became a sensored status in the 4th quarter of 2011. 187 141 CITY OF LAKE FOREST, ILLINOIS Table 12 Direct and Overlapping Sales Tax Rates Last Ten Fiscal Years City Special Fiscal Direct State Metra County Year Rate Rate Rate Rate Total 2004 *1.50% 5.00% 0.25% 0.25%7.00% 2005 1.50% 5.00% 0.25% 0.25%7.00% 2006 1.50% 5.00% 0.25% 0.25%7.00% 2007 1.50% 5.00% 0.25% 0.25%7.00% 2008**1.50% 5.00% 0.50% 0.50%7.50% 2009 1.50% 5.00% 0.50% 0.50%7.50% 2010 1.50% 5.00% 0.50% 0.50%7.50% 2011 1.50% 5.00% 0.50% 0.50%7.50% 2012 1.50% 5.00% 0.50% 0.50%7.50% 2013 1.50% 5.00% 0.50% 0.50%7.50% Data Source City records * Effective July 2003, an additional .5% non home rule sales tax was collected. The City of Lake Forest became a home rule community in November 2004. ** The sales tax rate remained the same as 2007 until April 1, 2008. On April 1, 2008, the sales tax rates increased to the rate indicated on this schedule. 188 142 CITY OF LAKE FOREST, ILLINOISTable 13Ratios of Outstanding Debt by TypeLast Ten Fiscal YearsGovernmental Activities Business-Type Activities Ratio of Total Percentage TotalFiscal General Installment General Total Outstanding Debt of OutstandingYear Obligation Purchase Obligation Revenue Primary To Equalized Personal Debt PerEnded Bonds Contracts Bonds Bonds Government Assessed Valuation* Income* Capita*2004 27,946,500$ 1,255,000$ 31,965,000$ 255,000$ 61,421,500$ 2.94% 3.97% 3,062.35$ 2005 30,861,955 1,163,333 31,920,000 195,000 64,140,288 2.85%3.87%2,983.27 2006 26,159,679 851,666 30,645,000 135,000 57,791,345 2.35%3.49%2,687.97 2007 21,586,517 650,001 29,325,000 70,000 51,631,518 1.91%3.12%2,401.47 2008 26,631,080 558,334 28,095,000 - 55,284,414 1.93%3.32%2,559.46 2009 24,188,066 11,166,667 26,280,000 - 61,634,733 2.08%3.70%2,853.46 2010 25,457,071 13,000,000 24,925,000 - 63,382,071 2.19%3.81%2,934.36 2011 40,887,758 - 23,525,000 - 64,412,758 2.37%4.31%3,324.53 2012 38,580,882 - 22,804,000 - 61,384,882 2.39%4.11%3,168.25 2013 37,203,146 - 21,060,000 - 58,263,146 2.45%3.90%3,007.13 Note: Details of the City's outstanding debt can be found in the notes to the financial statements.* See the Schedule of Demographic and Economic Statistics for equalized assessed valuation of property, population data and personal income. 189 143 CITY OF LAKE FOREST, ILLINOIS Table 14 Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years Percentage of Less: Amounts Estimated General Available Actual Taxable Fiscal Obligation In Debt Value of Per Year Bonds Service Fund Total Property* Capita 2004 59,911,500$ 1,300,000$ 58,611,500$ 0.93%2,922.25$ 2005 62,781,955 1,915,242 60,866,713 0.90%2,831.01 2006 56,804,679 2,381,564 54,423,115 0.74%2,531.31 2007 50,911,517 2,849,336 48,062,181 0.59%2,235.45 2008 54,726,080 2,708,268 52,017,812 0.60%2,408.23 2009 50,468,066 2,632,215 47,835,851 0.54%2,214.62 2010 50,382,071 2,839,265 47,542,806 0.55%2,201.06 2011 64,412,758 2,808,827 61,603,931 0.76%3,179.56 2012 61,384,882 2,316,219 59,068,663 0.77%3,048.71 2013 58,263,146 2,407,274 55,855,872 0.78%2,882.88 Note: Details of the City's outstanding debt can be found in the notes to the financial statements. * See the Schedule of Assessed Value and estimated Actual Value of Taxable Property for property value data. 190 144 CITY OF LAKE FOREST, ILLINOIS Table 15 Direct and Overlapping Governmental Activities Debt As of April 30, 2013 Percentage City of Debt Applicable Lake Forest Gross to the City of Share Governmental unit Debt Lake Forest*of Debt Lake County 82,955,000$ 9.72%8,063,226$ Lake County Community College #532 20,535,000 10.24%2,102,784 Lake County Forest Preserve District 305,415,000 9.72%29,686,338 North Shore Sanitary District - 29.94%- School District #67 1,087,468 99.94%1,086,816 School District #103 2,840,000 0.01%284 High School District #115 46,545,000 79.43%36,970,694 High School District #128 21,995,000 3.00%659,850 Subtotal, overlapping debt 481,372,468 78,569,991 City of Lake Forest direct debt 37,203,146 100.00%37,203,146 Total direct and overlapping debt 518,575,614$ 115,773,137$ Source: Lake County Clerk * Determined by ratio of assessed valuation of property subject to taxation in the City of Lake Forest to valuation of property subject to taxation in overlapping unit. The Percentage of debt is calculated by the percentage of the City's EAV in relation to the overlappling government's EAV. The gross debt is found on the Lake County website. Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Lake Forest. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. 191 145 CITY OF LAKE FOREST, ILLINOISTable 16Legal Debt Margin Information2004 2005 2006 2007 2008 2009 2010 2011 2012 2013Debt limit 180,228,505$ N/A N/A N/A N/A N/A N/A N/A N/A N/ATotal net debt applicable to limit 59,911,500 N/A N/A N/A N/A N/A N/A N/A N/A N/ALegal debt margin 120,317,005$ N/AN/AN/AN/AN/AN/AN/AN/AN/ATotal net debt applicable to the limit as a percentage of debt limit 33.24% N/A N/A N/A N/A N/A N/A N/A N/A N/ANote: Legal debt margin from 1997-2004 was 8.625% of assessed value.* City of Lake Forest achieved home rule status in November 2004. To date the General Assembly has set no limits for home rule municipalities. Last Ten Fiscal Years 192 146 CITY OF LAKE FOREST, ILLINOIS Table 17 Pledged Revenue Coverage Last Ten Fiscal Years Less:Net Fiscal Gross Operating Available Debt Service Year Revenue Expenses Revenue Principal Interest Coverage 2004 8,641,006$ 5,994,954$ 2,646,052$ 1,146,000$ 1,083,555$ 1.19 2005 9,324,549 5,152,272 4,172,277 1,300,000 930,502 1.87 2006 10,258,200 5,508,705 4,749,495 1,335,000 1,345,021 1.77 2007 10,180,035 6,226,411 3,953,624 1,385,000 1,277,609 1.48 2008 9,870,570 6,532,687 3,337,883 1,430,000 1,236,624 1.25 2009** 9,901,537 6,738,037 3,163,500 1,265,000 1,168,738 1.30 2010 8,446,734 5,397,283 3,049,451 1,358,325 1,126,001 1.23 2011 8,690,738 5,609,379 3,081,359 1,400,000 1,071,748 1.25 2012 8,767,029 6,358,960 2,408,069 1,651,000 661,906 1.04 2013 9,956,387 6,938,272 3,018,115 1,744,000 482,866 1.36 Note: Details of the City's outstanding debt can be found in the notes to the financial statements. Water Charges and Other includes investment earnings but excludes sale of property and grants. Operating expenses does not include debt service, depreciation or reserve requirements. ** In FY2009, the Paid Parking Fund was closed to the General Fund. Debt payments were paid from a new Debt Service Fund. Waterworks and Sewerage and Golf Course Bonds 193 147 CITY OF LAKE FOREST, ILLINOIS Table 18 Equalized Per Assessed Per Capita Fiscal Value Capita Personal Personal Unemployment Year Population (EAV) EAV Income Income Rate 2004 20,057 (A) 2,089,605,859 $ 104,183 $ 1,546,234,244 $ 77,092 $ 3.2% 2005 21,500 (E) 2,253,198,954 104,800 1,657,478,000 77,092 3.0% 2006 21,500 (E) 2,457,299,204 114,293 1,657,478,000 77,092 2.6% 2007 21,500 (E) 2,705,199,367 125,823 1,657,478,000 77,092 2.3% 2008 21,600 (E) 2,867,232,409 132,742 1,665,187,200 77,092 2.8% 2009 21,600 (E) 2,958,675,487 136,976 1,665,187,200 77,092 3.9% 2010 21,600 (E) 2,890,654,508 133,827 1,665,187,200 77,092 5.8% 2011 19,375 (A) 2,717,547,097 140,260 1,493,657,500 77,092 6.2% 2012 19,375 (A) 2,565,080,023 132,391 1,493,657,500 77,092 5.7% 2013 19,375 (A) 2,378,047,139 122,738 1,493,657,500 77,092 5.3% (A) Actual (E) Estimate by City of Lake Forest Data Source City records, Department of Labor and Office of the County Clerk. Demographic and Economic Information Last Ten Fiscal Years 194 148 CITY OF LAKE FOREST, ILLINOIS Table 19 % of % of Total City Total City Employer Employees Rank Population Employees Rank Population Northwest Lake Forest Hospital 1,600 1 8.26% 1,667 1 8.31% Hospira Inc. 1,350 2 6.97% 1,000 3 4.99% Trustmark Insurance Company 800 3 4.13% 1,000 2 4.99% TAP Pharmaceutical Products 850 4 4.24% Solo Cup Co. 600 4 3.10% Lake Forest College excludes student employees 500 5 2.58% 375 6 1.87% Lake Forest H.S. District 115 teacher, support staff 350 6 1.81% 364 7 1.81% Pactiv Corporation 300 7 1.55% 439 5 2.19% City of Lake Forest 275 8 1.42% 263 10 1.31% Brunswick Corporation 200 9 1.03% 280 9 1.40% Packaging Corporation of America 200 10 1.03% Lake Forest Elem. S.D. No. 67 304 8 1.52% 11977 6240 Data Source City staff contacted companies via mail. Principal Employers Current Year and Nine Years Ago 2013 2004 195 149 CITY OF LAKE FOREST, ILLINOIS Table 20Function/Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013General GovernmentAdministration 36.0 29.0 27.0 29.0 30.0 30.0 29.0 26.0 25.0 25.0Community Development 12.0 14.0 16.0 16.0 18.0 18.0 15.0 12.5 12.5 13.0Public SafetyFire ProtectionFirefighters 38.0 38.0 37.0 37.0 37.0 37.0 36.0 34.0 33.0 33.0Administrative 1.0 1.0 1.0 1.0 1.5 1.5 2.5 2.5 2.5 2.0PoliceOfficers 45.0 45.0 45.0 43.0 43.0 43.0 41.5 40.0 40.0 40.0Civilians 18.0 19.0 17.0 19.0 18.5 18.5 18.5 17.5 18.0 18.0Public WorksPublic Works Administration 4.0 4.0 5.0 5.0 5.0 5.0 5.0 5.0 4.0 4.0Building Maintenance 3.0 3.0 3.0 4.0 6.0 6.0 6.0 6.0 6.0 6.0Engineering 6.0 6.0 6.0 7.0 7.0 7.0 7.0 6.0 5.0 5.0Streets 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 7.0 7.5Sanitation 12.0 12.0 12.0 14.0 14.0 12.0 12.0 12.0 12.0 11.5Forestry 8.0 8.0 9.0 6.0 9.0 9.0 9.0 0.0 0.0 0.0Fleet (vehicle) Maintenance 6.0 6.0 6.0 5.0 5.0 5.0 7.0 6.0 6.0 6.0WaterWater Plant 9.0 9.0 9.0 9.0 9.0 9.0 9.0 8.0 7.0 7.0Water and Sewer 11.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0Parks 19.0 16.0 16.0 11.0 7.3 7.3 7.3 16.4 15.4 15.4Recreation 13.0 14.0 14.0 19.0 17.5 17.5 17.5 17.4 15.4 15.4Golf Course 3.0 3.0 4.0 4.0 4.3 4.3 3.3 3.2 3.2 2.2Cemetery 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0Senior Resources 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0Sub - total City 257.0 250.0 250.0 252.0 255.0 253.0 248.5 235.5 227.0 226.0Library 29.6 29.6 29.6 29.6 30.0 29.0 27.2 29.6 27.9 27.8Total all 286.6 279.6 279.6 281.6 285.0 282.0 275.7 265.1 254.9 253.8Data SourceCity Departments and employee totals as of April 30thFull-Time Equivalent EmployeesLast Ten Fiscal YearsFull-Time-Equivalent Budgeted Employees as of April 30 196 150 Table 21Function/Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013General GovernmentCity ClerkReal Estate Transfer Tax (1)Number of Transactions - - - 249 283 183 261 293 297 382 Rebates Issued- - - 24 35 23 30 37 37 40 Birth Certificates Issued1,957 2,419 2,198 2,930 2,790 2,690 2,751 1,940 2,821 2,675 Passports Issued (2)314 252 193 314 132 89 108 48 29 - Community DevelopmentBuilding permits issued4,308 4,740 4,055 3,501 3,491 3,142 2,610 3,072 3,451 3,197 Residential construction83 128 44 22 33 23 4 7 11 7 Commercial construction3 5 1 3 1 3 1 - 1 2 Building inspections conducted10,706 13,021 11,945 10,880 11,343 9,284 8,060 8,392 8,645 8,925 Public SafetyFire protectionI.S.O. rating4 4 4 4 4 4 4 4 4 4 Number of calls answered (calendar year)EMS1,403 1,465 1,446 1,477 1,624 1,558 1,041 1,211 1,607 1,726 Fire1,581 1,523 1,558 1,647 1,576 1,759 1,233 1,177 1,734 1,403 Police (calendar year)Non traffic arrests556 537 506 526 450 449 424 385 335 237 Parking violations10,360 9,655 11,189 11,898 9,530 9,626 8,472 8,757 7,114 7,013 Traffic violations4,948 4,721 4,821 4,512 3,287 5,320 3,190 2,997 2,028 2,220 Public WorksStreetsStreet resurfacing (miles) (calendar year) 2.41 3.90 4.41 1.90 10.36 3.08 5.76 6.57 7.09 5.92 Potholes repaired (4)2,102 2,957 2,484 1,575 N/A N/A N/A N/A N/A N/ANumber of snow eventsSalting 8 14 5 10 20 8 14 15 14 23 Plowing15 10 9 16 36 25 15 20 12 12 Inches of snow30 46 47 33 83 72 56 60 21 36 SanitationRefuse collection customers5,896 5,896 6,217 6,316 6,356 6,361 6,361 6,471 6,471 6,472 CITY OF LAKE FOREST, ILLINOISOperating Indicators Last Ten Fiscal Years 197 151 Function/Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013Parks and Recreation (3)Fitness Number of programs 564 565 533 478 370 348 349 334 322 264 Units of participation2,682 2,616 2,657 2,228 1,796 1,648 1,355 1,393 1,196 1,060 AthleticsNumber of programs229 200 199 210 220 213 278 157 309 283 Units of Participation3,608 3,369 3,279 3,189 3,232 3,253 3,148 2,416 2,932 2,704 Lakefront, Early Childhood Educationand Lifetime ActivitiesNumber of programs327 324 323 337 343 307 306 420 395 319 Units of participation2,016 2,169 1,932 1,874 1,873 1,541 1,402 1,344 1,424 1,576 Cultural Arts/Special EventsNumber of programs362 356 436 417 326 338 292 320 270 306 Units of participation3,062 2,894 3,831 3,618 2,454 2,536 2,274 2,262 2,008 1,972 Wildlife Discovery Center, Ridge Teams Course and AdventureNumber of programs214 227 231 224 221 176 146 124 10437Units of participation1,149 1,273 1,335 1,274 1,157 969 772 627 582 301Developed parks and recreation areas10 10 10 10 10 10 10 10 10 10 Developed park acreage370.5 370.5 370.5 395.5 395.5 395.5 395.5 415.0 404.0 403.7 Sites with playgrounds8 8 8 8 8 8 8 8 8 9 Sites with baseball diamonds7 7 7 7 7 7 7 7 8 8 Sites with soccer fields7 7 7 7 7 7 7 7 7 7 Sites with basketball courts4 4 4 4 4 4 4 5 5 5 Sites with tennis courts6 6 6 6 6 6 6 6 6 6 Deer Path Golf CourseSize18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holesRounds of Play33,500 34,500 38,700 36,500 39,900 35,494 35,079 32,664 31,949 30,321 Daily fee17,500 18,000 18,600 17,000 18,000 15,500 15,839 15,102 14,466 13,646 Seasonal16,000 16,500 20,100 19,500 21,900 19,994 19,240 17,564 17,483 16,675 CITY OF LAKE FOREST, ILLINOISOperating Indicators (Continued)Last Ten Fiscal Years 198 152 Table 21Function/Program2004 2005 2006 2007 2008 2009 2010 2011 2012 2013WaterNew Connections (tap-ons)120 140 99 52 34 39 16 19 22 20 Meters in operation6,534 6,566 6,633 6,695 6,681 6,771 6,774 6,761 6,755 6,754 Meters connected to sewerage system 6,105 6,137 6,501 6,482 6,520 6,550 6,570 6,570 6,583 6,584 Average daily consumption (MGD)3.977 3.942 4.913 3.931 4.182 3.737 3.611 3.669 3.759 4.202 Peak daily consumption (MGD)11.073 9.394 12.407 10.773 9.477 9.883 9.389 8.982 11.805 10.298 Rated daily pumping capacity (MGD)14 14 14 14 14 14 14 14 14 14 Total gallons pumped during fiscal year(in millions)1,457.0 1,421.8 1,777.6 1,441.6 1,525.1 1,441.7 1,321.1 1,336.5 1,372.0 1,534.0 Municipal paid parking facilitiesLong-term parking spacesMiscellaneous lots813 813 813 813 813 813 813 813 813 813 Union Pacific (CBD district)98 98 98 98 98 98 98 98 98 98 Metra (Telegraph Road)502 502 502 502 502 502 502 502 502 502 Short-term parking spaces341 341 341 341 341 341 341 341 341 341 Component UnitLibrary servicesBooks and non print materials126,930 128,817 133,893 137,343 140,171 143,518 142,654 145,496 145,539 147,330 Registered borrowers13,593 13,634 13,820 14,002 14,233 14,490 15,145 15,645 16,200 15,160 Fiscal yearbooks, items or materials circulation387,894 399,844 398,504 407,399 415,547 406,998 488,056 465,927 485,450 45,632 Data SourceCity departments(1) Collection of real estate transfer tax began in July 2006 (FY2007). (2) The City began to issue passports in FY2003 and stopped in FY2012.(3) a. Fitness data does not include Fitness Center memberships b. Units of participation may include an individual more than once(4) Department stopped tracking after FY2007.N/A = data not availableCITY OF LAKE FOREST, ILLINOISOperating Indicators (Continued)Last Ten Fiscal Years 199 153 CITY OF LAKE FOREST, ILLINOIS Table 22Function/Program 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013Public SafetyPoliceStations 1 1 1 1 1 1 1 1 1 1 Vehicles23 23 23 23 23 23 23 23 23 25 Fire protectionStations2 2 2 2 2 2 2 2 2 2 Vehicles14 14 14 14 14 14 14 14 14 14 Public WorksBridgesVehicle14 14 14 14 14 14 14 14 14 14 Pedestrian7 7 7 7 7 7 7 7 7 7 StreetsStreets (centerline miles) 118.16 118.40 118.66 118.66 118.66 119.00 119.00 119.00 119.00 119.00StreetlightsGas438 438 438 438 438 438 438 438 438 438 Electric1,437 1,438 1,452 1,460 1,460 1,460 1,473 1,526 1,526 1,526 Storm sewer (miles)213.36 216.14 217.56 218.26 218.26 218.29 219.17 219.35 219.41 219.41 Parks and RecreationAcreage370.5 370.5 370.5 395.5 395.5 395.5 395.5 415.0 404.0 404 WaterWater mains (miles)158.59 160.03 160.51 163.33 164.27 165.25 165.25 165.25 165.25 165.25 Fire hydrants1,328 1,350 1,350 1,353 1,331 1,362 1,362 1,362 1,362 1,362 WastewaterSanitary sewers (miles) 135.44 136.06 136.12 137.60 138.39 138.71 138.90 138.90 138.95 138.95 Data SourceCity departmentsN/A equals data not availableCapital Asset StatisticsLast Ten Fiscal Years 200 Request for Early Purchases of FY2015 Capital Equipment North Shore police adding more SUVs to their fleets Larger vehicles better suited to police work, experts say Glenview police Officer Anthony Nitti says the department’s new Ford Police Interceptor SUV is preferable to a police sedan. (Karen Ann Cullotta, Chicago Tribune / October 4, 2013) By Karen Ann Cullotta, Chicago Tribune reporter October 5, 2013 When Winnetka police Chief Patrick Kreis asked the Village Board to buy a sport utility vehicle for his department, one trustee questioned how officers can safely chase a fleeing offender while behind the wheel of a bulky, gas-guzzling vehicle. The board approved the $27,000 Ford Police Interceptor SUV after Kreis assured members that most of the department's vehicles will still be sedans. But in neighboring Glenview, officials have no qualms about phasing out sedans to create a patrol fleet of SUVs. They're following a trend in which police departments nationwide are increasingly opting for SUVs. September 2013 sales of the Ford Police Interceptor SUV are up 119 percent from September 2012, according to Jonathan Honeycutt, fleet brand 201 Request for Early Purchases of FY2015 Capital Equipment marketing manager for car, crossover utility vehicle and SUV police vehicles at Ford Motor Co. Glenview Deputy Chief Stefan Johnson said the new SUVs are better suited to today's police work than sedans. They have room for an officer's tools of the trade — evidence collection kits, computer equipment, road cones and flares. With four-wheel-drive, the SUV is also better than a sedan at navigating icy and snow-covered roads, he added. Meanwhile, the roomy back seat is safer for the arresting officer — and more comfortable for the offender being transported, Johnson noted. "If you look at the floor space of a Ford Taurus, imagine trying to get a pretty big guy who's wearing a size 12 shoe in the back of that car — it's just not going to work," said Johnson. "If you try to reach into the back seat of a car to buckle someone's seat belt, he could bite your ear off." "In some European countries, all you see is police driving SUVs," said Roy Lucke, director of the transportation safety programs at the Northwestern University Center for Public Safety. Since police departments increasingly frown upon pursuits because of the danger they pose, the need for a sedan that performs well during a high-speed chase is no longer a priority, Lucke said. "I'm seeing that the only downside to this trend is the SUVs can be a little more expensive than sedans," Lucke said. "The SUV is a much sexier, more macho car for police officers to drive, but it costs more and it certainly is not showing that the departments are going green," said Leonard Cavise, professor of law at DePaul University. "I don't believe that the motivation for police driving SUVs is they want to increase the comfort of the prisoner," he added. "The officers like driving them, but we're also seeing more people drive SUVs across the country, not just the police departments." Johnson said that of Glenview's fleet of 18 patrol vehicles, only two are SUVs. But officials hope to purchase primarily SUVs to replace aging sedans. "There is also a certain level of service expected in Glenview — even for an offender, who we don't want to put in danger by crowding him into the back seat of a car," Johnson said. Northbrook Police Chief Charles Wernick said the department added more SUVs to its fleet after the 2011 blizzard. 202 Request for Early Purchases of FY2015 Capital Equipment "Getting around was absolutely impossible," Wernick recalled of the treacherous road conditions. Northbrook's fleet has seven SUVs out of 35 vehicles, Wernick said. "Having them available when we get hit with a snowstorm makes all the difference in the world," Wernick said. But Wernick said the new SUVs don't necessarily have much more space than the traditional police sedans. "There is still a lot of equipment, no matter where you put it," he said. In Highland Park, the Police Department isn't necessarily moving toward SUVs to replace its cruisers, but it is recognizing their benefits, said Deputy Chief George Pfutzenreuter. Last year, the Highland Park Police Department bought two Ford Explorers for $52,200, Pfutzenreuter said. Two Dodge Chargers — the police cruiser of choice in Highland Park — were bought for $45,750. Those purchases were to replace aging cars in the fleet, he said, bringing the total to three SUVs and 15 Chargers. SUVs offer extra space for transporting equipment and handle better in bad weather, he said. But departments also have to be mindful of how they're spending taxpayer dollars. "Trends happen," Pfutzenreuter said. "If the SUVs continue to get better gas mileage and improve in cost, you're probably going to see more and more of them come up, if they can serve the same needs." Tribune reporters Gregory Trotter and Alexandra Chachkevitch contributed. kcullotta@tribune.com Copyright © 2013 Chicago Tribune Company, LLC 203 Summary and Recommendations – Development Parameters 8/14/13 Page 1 of 8 Laurel and Western Avenues Property Redevelopment Plan Commission Recommendations for Refinement to Previously Approved Development Parameters – Approved 5-0 on 8/14/2013 During the months of June, July and August, at the direction of the City Council, the Plan Commission considered the redevelopment of the City owned property at Western and Laurel Avenues. At the June meeting, the Commission re-familiarized itself with the former Municipal Services Facility site and then undertook a review of the previously accepted Development Parameters. The Parameters were developed as a follow up to community discussions in 2007 and 2008. The Council’s recent direction to the Plan Commission was to review, and if appropriate, recommend refinement of the parameters as a next step in the process of selecting a developer(s) and moving forward with reuse/redevelopment of the site. As background, the Development Parameters accepted by the City Council in 2008 were intended to serve as a guide for developers in preparing proposals for redevelopment of the site. The goal was to set realistic expectations and offer potential developers a good sense of what the City will likely support on the site and perhaps more importantly, to be clear about any types of redevelopment or elements of a project might be non-starters from the City’s perspective. The parameters are in part a response to input received from developers requesting some guidance and clarity on what the City is looking for before spending their resources developing a proposal. The parameters are not meant to stifle developer creativity. At the July meeting, the Commission reviewed, discussed, heard public comment and provided initial thoughts on the Development Parameters. After that meeting, Commissioners individually submitted further comments on the Development Parameters to staff and those were forwarded to Chairman Ley and to Lee Brown, the City’s consultant. Based on the input received, a draft of revisions to the Development Parameters was presented to the Plan Commission for discussion, public comment and action at the Commission’s August meeting. Approximately 20 members of the public attended the Commission meeting and three residents commented on the proposed changes to the Development Parameters. In general, the residents requested lower density and increased limitations on any future developments. To facilitate the City Council’s review of the Plan Commission’s recommendations, the previously accepted Development Parameters are repeated in this document, in the shaded boxes. The parameters are grouped by category. The refined Parameters as recommended by the Plan Commission are presented by category. As a reminder, the Development Parameters are intended to provide initial direction to potential developers. The Development Parameters will be included in the Request for Qualifications/Proposals that will be developed and issued by the Property and Public Lands Subcommittee of the City Council with the approval of the City Council. 204 Summary and Recommendations – Development Parameters 8/14/13 Page 2 of 8 ****** Previously Accepted Development Parameters -- Use 1. The Committee recommends that the use of the 10 acre parcel be primarily residential consistent with the following guidelines. The west 1/3 of site is appropriate for single family attached or detached units. The east 2/3 of site is appropriate for single family and multi-family units in the form of condominiums, apartments, rowhomes or townhouses. 2. The Committee recommends that an option for small scale retail or service business be retained on the southeast portion of the site. Small scale retail or service business space is limited to a maximum of 12,000 square feet. Non-residential uses are permitted only on the ground floor of the building. Non-residential uses are permitted within the B-2 portion of property and should not extend along Laurel Avenue beyond the existing commercial development on south side of Laurel Avenue. Residential units must be provided above any non-residential use. No stand alone commercial building is permitted. 3. The Committee recommends that no office uses be permitted on the site. RECOMMENDATION Replace the previously accepted Development Parameters pertaining to Use with the following: 1. The use of the 10 acre parcel is envisioned as primarily residential. Consideration of various housing unit types, at various price points and both ownership and rental products are encouraged. 2. If proposed, non-residential uses should:  Generally be located within the portion of property zoned B-2. 205 Summary and Recommendations – Development Parameters 8/14/13 Page 3 of 8  Be well integrated into the overall development and serve as an amenity or additive use to the development, surrounding neighborhood and overall business district.  Any non-residential use generating regular customer traffic should generally be oriented and accessed from Western Avenue. 3. Developer creativity and market responsiveness is encouraged with the knowledge that the City will evaluate each proposal for compatibility and sensitivity to the surrounding neighborhoods, the business district and the overall character of the community. High quality architectural design, quality materials, site layout, landscaping and amenities are expected to create a development that strengthens and diversifies the housing choices available within the City. ****** Previously Accepted Development Parameters -- Density and Open Space 4. The Committee recommends development of the property in a manner not to exceed the overall density permitted by the existing zoning on the property. The overall density of the site should not exceed 13 residential units per acre. The development should be required to meet the requirements of the City’s Inclusionary Housing Ordinance through incorporation of affordable units on site. The Affordable units, consistent with the Ordinance, would be in addition to the density recommended above, but in no case exceed should the development exceed an overall density of 15 units per acre. 5. The Committee recommends that a maximum of three stories in height be permitted. An increase above the maximum height permitted by the Code should be given consideration for roof elements or other building elements in the interest of achieving a high quality architectural design, but no useable floor area above three floors is recommended. 6. The Committee recommends that a minimum of 30% open space be provided on the site. The amount of open space shall be calculated exclusive of any parking lots, driveways, parking lot islands and public right-of-way. 206 Summary and Recommendations – Development Parameters 8/14/13 Page 4 of 8 RECOMMENDATION Replace the previously accepted Development Parameters pertaining to Density and Open Space with the following: 4. Density should not exceed permitted densities in surrounding residential developments. In all cases, the appearance of density should be mitigated through a site plan and building design that incorporates various techniques used in combination including, but not limited to: siting and orientation of buildings, setbacks, transition areas, open space, articulated building massi ng and selection of architectural styles that minimize the appearance of mass. 5. The requirements of the City’s Inclusionary Housing Ordinance must be met through incorporation of affordable and moderately priced units, as defined in the City Code, on the site. 6. Building heights at the perimeters of the site may be consistent with the height of the surrounding residential uses. Buildings up to four stories above grade, including parking if applicable, may be permitted internal to the site and along Western Avenue in cases where building design is consistent with the architectural style selected by the developer and the appearance of mass and height is mitigated by a strong land plan as noted in Parameter #4. 7. Consideration will be given to architectural elements, but no useable floor area, that rise above a four story massing in the interest of achieving a high quality architectural design and adequate visual and acoustical screening for any roof top elements. 8. A minimum of 30% open space should be provided on the site. The open space calculation excludes parking lots, driveways, parking lot islands and public or private rights-of-way but may include open space surrounding the oak tree and Franklin Park, or any portion of the park, if it is retained as part of the development plan. ****** Previously Accepted Development Parameters -- Streets and Access 7. The Committee recommends that the new development be designed in a manner that integrates with the surrounding neighborhoods. 8. The Committee recommends that access for multi-family uses and for any small scale retail or service businesses be limited to Western Avenue. 9. The Committee recommends that road layouts be generally consistent with the grid based street pattern in the Central Business District. 207 Summary and Recommendations – Development Parameters 8/14/13 Page 5 of 8 10. The Committee recommends that sufficient emergency ingress/egress be assured providing for access to both the new development and existing development in the surrounding area. 11. The Committee recommends that if a street connection to Franklin Place is provided, consideration be given to the following: a. The street connection should provide access only to the single family portion of the development and should not provide a through connection for vehicle traffic to Western Avenue. b. Consideration should be given to the benefits of widening a portion of Franklin Place and providing an opportunity for additional on street parking for the benefit of the existing residential development to the north. RECOMMENDATION Replace the previously accepted Development Parameters pertaining to Streets and Access with the following: 9. Development should be designed to integrate with the surrounding neighborhoods. 10. Sufficient emergency ingress/egress to both the new development and existing development in the surrounding area must be provided. 11. Consideration should be given to the benefits of widening a portion of Franklin Place and providing an opportunity for additional on street parking for the existing residential development to the north. ****** Previously Accepted Development Parameters -- Parking 12. The Committee recommends that adequate on site parking be provided for all residents, employees, visitors, service providers and customers associated with the new development. 13. The Committee recommends that underground parking be provided in the new development to maximize open space. 14. The Committee recommends that additional on street, public parking on Western and Laurel Avenues be provided in conjunction with the new development to address existing parking shortages in the area. 208 Summary and Recommendations – Development Parameters 8/14/13 Page 6 of 8 On street parking on Laurel Avenue should not extend beyond the existing commercial development on the south side of Laurel Avenue into the residential area. RECOMMENDATION Replace the previously accepted Development Parameters pertaining to Parking with the following: 12. Adequate on site parking should be provided for all residents, employees, visitors, service providers and customers associated with the new development. 13. In planning for adequate parking on the site, consideration should be given to parking alternatives that maximize the amount of open space. Use of covered, on site parking is encouraged to meet the parking needs for the new development. 14. The provisions of additional on street, public parking on Western and/or Laurel Avenues should be explored to address existing parking shortages in the area during consideration of a unified development plan for the site. On street parking on Laurel Avenue should not extend beyond the existing commercial development on the south side of Laurel Avenue into the residential area. ****** Previously Accepted Development Parameters -- Preservation of Existing Landscape Elements 15. The Committee recommends that the existing oak tree to the south of the current Municipal Services building be preserved and that adequate open space be provided around tree to support its continued viability 16. The Committee recommends that consideration be given to preserving some or all of Franklin Park and preserving some or all of the berm and mature trees along Franklin Place if preserving those elements can be done in a manner that is consistent with an overall high quality site plan. RECOMMENDATION Replace the previously accepted Development Parameters pertaining to Preservation of Existing Landscape Elements with the following: 209 Summary and Recommendations – Development Parameters 8/14/13 Page 7 of 8 15. Preserve the existing oak tree to the south of the former Municipal Services building and adequate open space around the tree to support its continued viability. 16. If Franklin Park is not preserved, provide an area for public use that is equal to or larger than the area now known as Franklin Park. ****** Previously Accepted Development Parameters - Site Amenities 17. The development should be pedestrian friendly and should provide amenities not only to the residents of the new development, but also to residents in adjacent residential neighborhoods. The following amenities are encouraged: Pocket parks that provide passive recreational opportunities, landscape features and open space. Pedestrian connections around and through the development. Pedestrian friendly streetscapes with set back sidewalks Lighting consistent with Lake Forest standards for both streets and pedestrian walkways designed to address pedestrian and vehicle safety while at the same time respecting the “right to night” and the historic lower lighting levels of Lake Forest. RECOMMENDATION Retain all of the previously accepted Development Parameters pertaining to Site Amenities as detailed above. ****** Previously Accepted Development Parameters - Setbacks 18. The Committee recommends that minimum setbacks for existing zoning districts be satisfied. Along the streetscapes, increased setbacks should be considered as part of the overall site design to support a pedestrian friendly connection to the core of the Central Business District. 210 Summary and Recommendations – Development Parameters 8/14/13 Page 8 of 8 RECOMMENDATION Replace the previously accepted Development Parameters pertaining to Setbacks with the following: 18. Reflect the applicable zoning setbacks for the site and the traditional character of Lake Forest neighborhoods and streetscapes in the land plan. Variances from the required setbacks may be granted by the City if it is demonstrated that as a result, the overall plan is enhanced. ****** Previously Accepted Development Parameters - Process 19. The Committee recommends that the project, once a developer is selected by the City Council, be processed through the Plan Commission and Building Review Board normal public hearing processes. 20. The Committee recommends that the City Council consider retaining ownership of the property until final development approvals are granted or until another mechanism is in place to assure development in a manner that is acceptable to the City Council. RECOMMENDATION Replace the previously accepted Development Parameters pertaining to Process with the following: 19. Once a developer is selected by the City Council, consideration of the detailed land plan and buildings will be processed through the normal public hearing processes before the Plan Commission and Building Review Board only after close coordination through the design development process with the City’s consultant and City staff from various departments. 20. The City intends to work with the selected developer through the entitlement process to assure that a high quality project, guided by these development parameters, is approved in a timely manner and further to coordinate with the selected developer to establish a timeline and approach to buildout of the site that provides certainty and balances the interests of all affected parties to the extent possible. 211 212 The City of Lake Forest CITY COUNCIL Proceedings of the October21, 2013 Regular Meeting 7:30 p.m. – Council Chambers CALL TO ORDER AND ROLL CALL: Mayor Schoenheider called the meeting to order at 7:30 pm, and Deputy City Clerk Margaret Boyer called the roll of Council members. Present: Honorable Mayor Schoenheider, Co-presiding Mayor for a Day Trip Pierce, Alderman Novit, Alderman Waldeck, Alderman, Alderman Moore, Alderman Palmer, Alderman Adelman and Alderman Pandaleon. Absent: Alderman Reisenberg. Also present were: Robert Kiely, City Manager; Vic Filippini, City Attorney; Catherine Czerniak, Director of Community Development; Susan Banks, Communications Manager, Mary Van Arsdale, Director of Parks and Recreation, Bob Ells, City Engineer, Michael Thomas, Director of Public Works, Elizabeth Holleb, Finance Director, Jim Held, Chief of Police, Karl Waldorf, Deputy Chief of Police, Kevin Issel Deputy Fire Chief, and Anne Whipple. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was recited by all in attendance. There were approximately 45 present in the audience. REPORTS OF CITY OFFICERS Comments by Mayor Mayor Schoenheider asked that all citizens give feedback and input on the Consolidating 911 Dispatch Services. Information is available on the web site. A. Mayor for a Day – 5th Grade student from Deer Path Middle School Mayor Schoenheider introduced Trip Pierce, who was Lake Forest Mayor for a Day. B. Red Ribbon Proclamation and Red Ribbon 5K Race- Mayor for a Day, Trip Pierce read the Proclamation proclaiming that the week of Oct 21- 25 as Red Ribbon Week. Joy Markee, Director of Community Relations & Development for LEAD, spoke to the City Council relating to the upcoming 5K run along with additional future events that LEAD will participate in that include Lake Forest High School and Gorton Community Center. C. Appointments by Mayor TASK FORCE TO EXPLORE SHARED OPPORTUNITIES RELATED TO PARKS & REC 213 Proceedings of the October 7, 2013 Regular City Council Meeting RECOMMENDED ACTION: Approve appointments recommended by Mayor Schoenheider Alderman Novit moved, seconded by Alderman Moore to approve appointments recommended by Mayor Schoenheider. Motion carried unanimously by voice vote. D. Report on the BMW Golf Championship at Conway Golf Club Mayor Schoenheider introduced Vince Pellegrino, Vice President of the Western Golf Association and Todd Marsh, General Manager of Conway Farms Golf Club. Mr. Pellegrino gave an overview of Highlights of the Tournament week. $100,000.00 was donated to the Evan Scholars Foundation, 134,622 people attended; there were 1700 volunteers from 23 states and 2 countries. He thanked the fans, corporate Sponsors and neighboring communities for their support. He said that the feedback from the players was that they enjoyed playing Conway Farms. Mr. Pellegrino noted improvements that could have been made that included traffic, handicapped accessibility and parking. He once again thanked The City of Lake Forest for all that it did for the Evans Scholarship Foundation. City Manager Robert Kiely said how nice it was to see how much the community embraced the event, along with how proud he was of City Staff and the way in which they worked with one another. He then asked Karl Walldorf, Deputy Chief of Police and Kevin Issel, Deputy Fire Chief, to step forward. Mr. Kiely went on to say thanks for all the efforts and hard work that paid off in planning this event Mr. Pellegrino said that some of the best management practices that The City of Lake Forest Police and Fire brought to the Tour are now in use as a Standard Tour-wide. In conclusion, Mr. Kiely said that from a financial point of view, the City was certainly not into this to make money, and that it would most likely break even after few one-time Capital expenses. Mr. Marsh thanked everyone for their unbelievable team effort. He added that there were 70 players from 11 Countries and 21 States, the players averaged 70.8 and the par score is 71 for the course. He went on say there were 18 eagles and 1,112 birdies. Mr. Marsh said there will be an open forum at Conway Farms Golf Club on Tuesday November 5 at 6:00pm, an opportunity to offer feedback to City Officials and Western Golf Association Officials. Mayor Schoenheider thanked Vince, Todd, the WGA and BMW, along with Staff, and stated how proud he was to be associated with the Evan Scholars Foundation. Comments by City Manager NAME OF MEMBER APPOINT WARD Dan Jasica Appoint 4 Peter Schaefer Appoint 3 214 Proceedings of the October 7, 2013 Regular City Council Meeting City Manager Robert Kiely noted the successful event held at Elawa Farms to sell Native trees in effort to “re-green” Lake Forest. A. YES for Independent MAPS- Michael Kolec, Campaign Manager City Manager Robert Kiely introduced Michael Kolec, the Campaign Manager for YES for Independent Maps. Mr. Kolec reported on YES for Independence’s plan for redistricting reform. He said the reform would take drawing of the maps away from politicians and put it into the hands of an eleven member commission that included republicans, democrats and independents. Although map lines are not an issue in The City of Lake Forest, he encouraged that the City Council consider supporting a future Resolution in favor of YES for Independent Maps. Comments by Council Members Alderman Novit congratulated the Deer Path Middle School Girls’ Cross Country Track team on taking first place in State. A. Finance Committee Acknowledge Receipt of the FY2013 Treasurer’s Report Finance Committee Chairman, George Pandaleon, spoke to the Council regarding the 2013 Treasurer’s Report. He said pursuant to Illinois Statute, a Treasurer’s Report must be filed with the City Clerk, the County Clerk, and published in a Lake Forest newspaper within six months after the end of each fiscal year. He said the report will be published in the October 24, 2013 edition of the Lake Forester. COUNCIL ACTION: Acknowledge receipt of the FY2013 Treasurer’s Report. Alderman Pandaleon moved, seconded by Alderman Palmer to acknowledge receipt of the FY2013 Treasurer’s Report. Motion carried unanimously by voice vote. Alderman Tack thanked all those who came to the Community Forum discussion on Ravines. Alderman Palmer reminded all residents of the upcoming community Forum on the Topic of “Neighbor Relations” on Thursday November 21 at Gorton Community Center. OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS Seeing none, Mayor Schoenheider read the Omnibus items for consideration. ITEMS FOR OMNIBUS VOTE CONSIDERATION 1. Approval of the October 7, 2013 City Council minutes 2. Resolution of Sympathy for Lt. Hagedorn 215 Proceedings of the October 7, 2013 Regular City Council Meeting 3. Approval to purchase new planimetric data for GIS mapping RECOMMENDED ACTION: Approve the three (3) Omnibus items as presented. Referring to the minutes of 10/7/13 the City Attorney brought up a minor scrivener’s error. Mayor Schoenheider asked the City Council if it would like to remove any item to take separately. Seeing no request, he asked for a motion. Alderman Adelman asked about updating the GIS Mapping System. City Engineer Bob Ells said by utilizing the GIS Consortium, members benefit from low rates generated from the collective bargaining of the group. The cost of the flyover services shall be shared among the participating members. He also said there have been a lot of changes since 1998, and that The City of Lake Forest is one of the last communities to have the advantage of this technology. Alderman Pandaleon made a motion to approve by Omnibus vote designation items as noted, seconded by Alderman Palmer. The following voted “Yea”: Aldermen Novit, Waldeck, Moore, Pandaleon, Tack, Palmer and Adelman. The following voted “Nay”: None.7 Yeas, 0 Nays, motion carried. Information such as Purpose and Action Requested, Background/Discussion, Budget/Fiscal Impact, Recommended Action and a Staff Contact as it relates to the Omnibus items can be found on the agenda. ORDINANCES None NEW BUSINESS None ADDITIONAL ITEMS FOR COUNCIL DISCUSSION Mayor Schoenheider acknowledged Mayor for a Day Trip Pierce, who did a great job in the meeting. ADJOURNMENT There being no further business. Alderman Palmer made a motion to adjourn, seconded by Alderman Moore. Motion carried unanimously by voice vote at 8:40 pm Respectfully Submitted, Margaret Boyer Deputy City Clerk 216 Proceedings of the October 7, 2013 Regular City Council Meeting A video of the City Council meeting is available for viewing at the Lake Forest Library and on file in the Clerk’s office at City Hall. You can also view it on the website by visiting www.cityoflakeforest.com. Click on I Want To, then click on View, then choose Archived Meetings Videos. 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268