CITY COUNCIL 2013/09/03 Agenda
THE CITY OF LAKE FOREST
CITY COUNCIL AGENDA
Tuesday, September 3, 2013 7:30 P.M.
City Hall Council Chambers
CALL TO ORDER AND ROLL CALL 7:30 p.m.
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
PLEDGE OF ALLEGIANCE
REPORTS OF CITY OFFICERS
1. COMMENTS BY MAYOR 7:30 p.m.
A. Resolution of appreciation for Robert Goeppner (police)
A copy of the Resolution can be found beginning on page 11
B. Resolution of appreciation for Michael T. Evert
A copy of the Resolution can be found beginning on page 12
2. COMMENTS BY CITY MANAGER 7:40 p.m.
A. Janice Hack, Historical Society - Community Spotlight
3. COMMENTS BY COUNCIL MEMBERS 7:50 p.m.
A. PPL Committee- Jack Reisenberg Chairman
1. Approval of a License Agreement with Lake Forest Bank and Trust for
the Drive- Up ATM Facility and premises located at 70 N. Bank Lane.
PRESENTED BY: Property and Public Land Committee Chairman Reisenberg
STAFF CONTACT: Carina Walters, Assistant City Manager (810-3680)
PURPOSE AND ACTION REQUESTED: According to Section 5.1 in the City’s policy for the
inventory, sale, lease and retention of public property the City Council must approve any
leases longer than 5 years exceeding $10,000. On August 19,2013 the Property and Public
Land Committee met and tonight is unanimously recommending that the City Council
approve a long term license agreement with Lake Forest Bank and Trust located at 70 N.
Bank Lane also known as Quarter Lot.
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September 3, 2013 City Council Agenda
BACKGROUND/DISCUSSION: On January 1, 1993 the City entered into a 10 year lease
agreement with (2) 5 year extensions to lease the premises to Lake Forest Bank and Trust.
The lease will expire on December 31, 2013.
In 2012 the Bank and the City began negotiating the terms and conditions for the license
agreement. This evening the PPL Committee is seeking approval of a 10 year license
agreement with Lake Forest Bank & Trust in the amount of $64,129.47 (for the first year).
The license fee shall be increased annually on the anniversary of the Commencement
Date for any increase in the Consumer Price Index (as defined in 35 ILCS 200/18-185)
("License Fee"). For your convenience a copy of the License Agreement can be found
on page 13 of your council packet
RECOMMENDED ACTION: If Appropriate and should the City Council desire, approve a
License Agreement with Lake Forest Bank and Trust for the Drive- Up ATM Facility located
at 70 N. Bank Lane.
B. Authorize the City Manager to enter into a listing agreement with Koenig &
Strey to sell Wedgewood Lots #22, #23, #24.
PRESENTED BY: Property and Public Land Committee Chairman Reisenberg
STAFF CONTACT: Carina Walters, Assistant City Manager (810-3680)
PURPOSE AND ACTION REQUESTED: On August 19, 2013 the Property and Public Land
Committee met and tonight is unanimously recommending that the City Council
approve a Professional Services contract with the real estate firm Koenig & Strey to assist
the City in selling Wedgewood Lot’s #22, #23, #24.
BACKGROUND/DISCUSSION: At your May 20, 2013 meeting, the City Council approved a
Resolution declaring the Wedgewood Lots surplus and directing staff to begin marketing
the sale of the three lots. In June, staff sent correspondence to developers and realtors
advising that these lots were for sale by owner. Since June, staff has received a few
inquiries; however, no proposals.
The approved Resolution also directed staff to solicit a Request for Qualifications (RFQ)
from all local real estate agents who would assist the City to market and sell these three
City-owned undeveloped lots. The City received RFQ’s from Koenig & Strey, Coldwell
Banker, Griffith Grant and Lackey, and Baird & Warner. Of the four proposals received,
Koenig & Strey prepared the most professional packet including scope of work,
acknowledging the 5% commission rate, and marketing recommendations. As staff is still
negotiating a few items; we respectfully request the City Council to authorize the City
Manager to enter into a listing agreement. For your convenience, a copy of the selling
agreement is attached beginning on page 27.
RECOMMENDED ACTION: Authorize the City Manager to enter into a listing agreement
with Koenig & Strey to sell Wedgewood Lots #22, #23, #24.
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September 3, 2013 City Council Agenda
4. OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA
ITEMS
5. ITEMS FOR OMNIBUS VOTE CONSIDERATION 8:00 p.m.
1. Approval of the August 5, 2013 City Council minutes.
A Copy of the minutes can be found beginning on page 31
2. Approval of Check register from July 27-August 23, 2013
3. Award of Bid for the Public Safety Fan Coil Replacement Project
PRESENTED BY: Dan Martin, Superintendent of Public Works (810-3561)
PURPOSE AND ACTION REQUESTED: Staff is requesting City Council authorization to award
a bid for the Public Safety Fan Coil Replacement Project to Ideal Heating Company. The
project to replace the existing mechanical systems would be completed in early
December, 2013.
BACKGROUND/DISCUSSION: The existing Public Safety Building HVAC’s system consists of
two parts. The interior space is covered by a VAV system and the perimeter of the
building is covered by a series of fan coil units. Both systems are connected to the chiller
and boilers which supply them with hot and cold water depending on the season. The
determining factors used to replace these units include the increasing number of out of
service calls, the ability to have the units run more efficiently by the use of electronic
Check Register For Period July 27 - August 23, 2013
Fund Invoice Payroll Total
General 328,938 1,112,401 1,441,339
Water & Sewer 77,973 119,908 197,881
Parks & Recreation 159,213 376,611 535,824
Capital Improvements 1,051,029 0 1,051,029
Bond Funds - Projects 0 0 0
Motor Fuel Tax 0 0 0
Cemetery 11,150 16,576 27,726
Senior Resources 13,251 19,514 32,765
Deerpath Golf Course 82,280 46,994 129,275
Fleet 67,084 39,223 106,307
Debt Funds 0 0 0
Housing Trust 0 0 0
Park & Public Land 86 0 86
All other Funds 537,388 134,445 671,833
$ 2,328,392 $ 1,865,672 $ 4,194,064
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September 3, 2013 City Council Agenda
controls, improving the air quality of the units, and the age of these units. The units are
original to the building which was constructed in the 1960’s.
The proposed new fan coil units are part of an upgraded HVAC system designed by
Lakefront Engineering in Kenosha, Wisconsin. The project will consist of removing the old
fan coil units, installing 19 new units, and the addition of maintenance isolation valves in
the system’s main water piping. Installing the new units will not only increase efficiencies
by reducing maintenance costs, but they will also decrease downtime from equipment
failures and lower utility usage. In addition, the units will improve air quality by removing
years of corrosion, dirt, and scale built up in the old units. The isolation valves will allow
maintenance staff to perform preventative maintenance on the units without shutting
down the entire system.
The coil replacement work was originally to be completed in two phases, with the second
phase scheduled to occur in FY15. Due to the favorable bids submitted by Ideal Heating
Company, the City is able to complete the replacement of the remaining ten units in
FY14, thus eliminating the need for phase two with assumed price increases in FY15.
BUDGET/FISCAL IMPACT: On August 9, 2013, staff received the following bids for this
project:
Company Base Bid
Amount
Price for 10
additional units Total cost
Ideal Heating
Company $44,222.00 $44,191.25 $88,413.25
Air Con Refrigeration
& Heating $48,854.00 $54,282.30 $106,782.30
Martin Petersen
Company $52,500.00 $52,000.00 $104,500.00
Amber Mechanical $89,890.00 Not Provided -
Staff and Lakefront Engineering reviewed the project scope and determined that Ideal
Heating Company’s proposal met all of the required project specifications and their
references gave favorable responses.
FY2014
Funding
Source
Account Number
Account
Budget
Amount
Requested
Budgeted?
Y/N
Capital Fund 311-0050-419-67-10 $90,000 $89,913.25 Y
RECOMMENDED ACTION: Award of bid to Ideal Heating Company in the amount of
$88,413.25. Additionally, staff is requesting a $1,500.00 contingency for any unforeseen
problems during the project.
4. Payment Authorization for Painting the Route 60 METRA Railroad Bridge
PRESENTED BY: Michael Thomas, Director of Public Works (810-3540)
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September 3, 2013 City Council Agenda
PURPOSE AND ACTION REQUESTED: Staff is requesting City Council authorization to pay
DiVinci Painter’s invoice for painting the Route 60 METRA railroad bridge. The initial quote
was for $19,995, however with the final expense being $22,770, City Council authorization
is required for all purchases over $20,000
BACKGROUND/DISCUSSION: In preparation for the BMW Golf Tournament, City staff have
been working to clean-up the Route 60 / Saunders / Everett Road corridors. With that,
the City was of the opinion that the Route 60 METRA railroad bridge was in need of a new
coat of paint. Although the existing paint was failing in multiple places over the bridge’s
fascia, METRA informed the City that they had no intentions of painting the bridge now or
in the future.
METRA officials had suggested to staff that a complete sandblast and re-paint of the
bridge would cost in excess of $250,000. However after further research by staff, it was
determined that a simple scrape and wire brush of the existing surface along with a two-
part epoxy primer and finish coat, would adequately address the bridge’s appearance.
Staff received a quote from DiVinci Painters to complete the work for just under $20,000.
The City has worked with DiVinci Painters on multiple projects over the years and is very
satisfied with the painting they have performed. Although the work is only warrantied for
one year, it is expected that the paint system applied should last five to seven years
before seeing any possible changes.
The work began on Tuesday, September 13, 2013 and was expected to be completed in
seven to ten days. Any work performed on or near a State of Illinois highway must occur
between the hours of 9:00 a.m. and 3:00 p.m. As the project progressed it became
apparent that the work could be completed more efficiently if the painters were allowed
to work longer days without spending as much time within the six hour window of time,
preparing and cleaning up the site. In addition, the forecasted good weather for that
weekend prompted staff to recommend that the job continue during both weekend
days. This would allow the project to be completed Sunday afternoon without having
the need to interfere with weekday traffic the following week. The weekend work cost
an additional $2,775 in overtime for the painters and as a result, the final project cost
exceeded the $20,000 limit.
BUDGET/FISCAL IMPACT: Dollars have been allocated in this fiscal year’s budget to cover
various expenses for the BMW Golf Tournament. The following chart provides the funding
source and applicable account number.
FY2014
Funding
Source
Account Number
Account
Budget
Amount
Requested
Budgeted?
Y/N
General Fund 101-2501-499-84-04 $20,000 $22,770 Y
RECOMMENDED ACTION: Authorize payment for the painting of the Route 60 METRA
railroad bridge to DiVinci Painters in the amount of $22,770.
5. 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,
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September 3, 2013 City Council Agenda
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.
893 Beverly Place – The Building Review Board recommended approval of the design, massing
and materials of a major addition to the rear of the residence, the associated partial
demolition of the existing residence, approval of various related alterations to the existing
house and approval of enhanced landscaping to mitigate the increased mass resulting from
the addition. The Board received one letter from a neighboring property owner stating
concern about construction activity and construction vehicle parking. No other public
testimony was presented to the Board on this petition. The Board directed that staff monitor
the project for compliance with construction activity regulations. (Board vote: 5-0, approved)
41 June Terrace - The Building Review Board recommended approval of the demolition of the
existing residence on this property and approval of a replacement residence including the site
plan, building design, exterior materials and landscape plan. The Board received one letter
from a neighboring property owner stating support for the project. No other public testimony
was presented to the Board on this petition. (Board vote: 5-0, approved)
1418 N. Green Bay Road - The Building Review Board recommended approval of a building
scale variance to allow the construction of several small additions to the house and
construction of a detached garage and conservatory. The Board recommended approval of
the design, massing and materials for the various elements of the project. The Board noted
that the property is isolated, located at the end of a long private and is adjacent to preserved
open space. No public testimony was presented to the Board on this petition. (Board vote: 5-
0, approved)
Ordinances approving each of the petitions as recommended by the Building Review Board,
with key exhibits attached, are included in the Council packet beginning on page 39. The
Ordinances and complete exhibits are available for review in the Community Development
Department.
Recommendation: Waive first reading and grant final approval of the Ordinances in
accordance with the recommendations of the Building Review Board.
RECOMMENDED ACTION: Approve the five (5) Omnibus items as presented.
6. ORDINANCES 8:20 p.m.
1. Consideration of an Ordinance Authorizing the Issuance of General
Obligation Refunding Bonds, Series 2013 (First Reading)
PRESENTED BY: Elizabeth Holleb, Finance Director (810-3612)
PURPOSE AND ACTION REQUESTED: Staff requests approving the first reading of the
ordinance authorizing issuance of 2013 refunding bonds.
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September 3, 2013 City Council Agenda
BACKGROUND/DISCUSSION: In 2010, the City issued General Obligation Bonds,
Series 2010A in the amount of $9,665,000. The proceeds on this issue were used to
provide partial financing for the construction of the Municipal Services facility. The
entire principal amount is due in December 2015, at which time it was anticipated
that the Laurel Avenue property which had served as the prior site of Municipal
Services would be redeveloped and the proceeds of that redevelopment would
be used to retire the bonds.
National economic conditions have delayed the redevelopment of the Laurel
Avenue property although discussions continue on the best use of the site. The
Finance Committee has previously deliberated on the refinancing of the 2010A
issue at this time for the following reasons:
• 2010A issue is callable on or after December 15, 2013
• Interest rates remain competitive and are anticipated to increase
• No other bond issues are planned in 2013, allowing the refunding to occur
as a bank-qualified issue, yielding additional interest savings
• The refunding would provide additional flexibility for the redevelopment of
the Laurel Avenue property
Attached is the draft Official Statement (page 66) which has been submitted to
Moody’s Investors Service with a request for a rating.
FISCAL IMPACT: The interest rate on the bond issue will be determined at the
online bid auction scheduled for September 16. Debt service on the bond issue is
scheduled through December 2032 and will be paid from the City’s property tax
levy for debt. The bonds will be callable in whole or in part on or after December
15, 2021. Proceeds from the redevelopment of the Laurel Avenue property could
be used to advance refund these bonds and provide additional debt capacity for
future needs.
RECOMMENDED ACTION: Approval of first reading of the bond ordinance (page
109). An online bid will occur on Monday, September 16. At the September 16
City Council meeting, a final bond ordinance will be presented for Council
consideration for second reading and granting final approval.
2. Consideration of a Recommendation from the Plan Commission in Support
of Phase 2 of the Master Plan for Woodlands Academy of the Sacred Heart
located at 760 E. Westleigh Road. (If desired by the Council, waive first
reading and grant final approval.)
PRESENTED BY: Catherine Czerniak,
Director of Community Development (810-3504)
PURPOSE AND ACTION REQUESTED
The City Council is asked to consider a recommendation from the Plan
Commission for approval of Phase 2 of the Master Plan for Woodlands Academy.
This second phase of the Master Plan focuses on improvements planned on the
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September 3, 2013 City Council Agenda
former site of Barat Campus immediately after the demolition of Old Main is
completed.
BACKGROUND AND DISCUSSION
In February, 2012, the City Council approved a Special Use Permit authorizing the
incorporation of the former Barat Campus into the Woodlands Academy campus.
The Special Use Permit requires that a Master Plan be developed, in multiple
phases if desired by Woodlands Academy, and presented to the City for review
and approval to allow the former Barat Campus to be incorporated fully into the
Woodlands Campus.
Last October, the City Council approved Phase 1 of the Master Plan which
authorized the construction of a new monopole which is now in place. New
wireless antennas on the pole should be operational within the next 30 to 60 days
replacing the service provided by antennas on Old Main and clearing the way for
demolition of the building as previously approved by the City Council. Salvaging
and removal of interior materials has been underway for some time and will allow
the demolition of the building shell to proceed more quickly and cleanly than it
would have without this preliminary work.
Phase 2 of Woodlands’ Master Plan will serve the immediate needs of Woodlands
Academy and the needs for the foreseeable future. As noted by the Plan
Commission, the plan presented does not include any surprises or any elements
that were not previously discussed during the public process that began in 2011
when the opportunity to combine the former Barat Campus with the Woodlands
Academy campus was presented to the City for review and approval. Some of
the key components of the Phase 2 are noted below.
Safety improvements to ingress and egress to the campus.
Preservation of the front lawn as open space.
Reuse of the former Cooney Library.
Development of two new athletic fields for student activities.
Addition of parking and internal circulation roads and paths.
A memorial honoring Old Main is planned on the site.
A more detailed summary of the plan is provided in the Plan Commission’s Report
which is included in the Council packet following the ordinance. A copy of the
Phase 2 Master Plan is also included in the Council packet.
The Plan Commission heard public comment from two residents who stated
general support for the plan and commented on the height of the monopole, the
preservation of the front lawn, the need for properly located crosswalks on
Sheridan Road to align with the Woodlands plan and the importance of
maintaining access to the bike path from Sheridan Road. After deliberation, the
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September 3, 2013 City Council Agenda
Plan Commission voted 6 – 0 to recommend approval of Phase 2 of the Master
Plan subject to conditions of approval.
RECOMMENDED ACTION: The ordinance, including findings in support of the
Commission’s unanimous recommendation to approve Phase 2 of the Master Plan
and conditions of approval as recommended by the Commission, is included in
the Council packet beginning on page138.
Recommendation: Waive first reading and grant final approval of an Ordinance
approving Phase 2 of the Master Plan for Woodlands Academy of the Sacred
Heart.
3. Consideration of an Ordinance Amending The City of Lake Forest Liquor
Code, Section 4-10, Number of Licenses. (Waive first reading and if desired
by the City Council, grant final approval.)
STAFF CONTACTS:
Catherine Czerniak, Director of Community Development 810-3504
Margaret Boyer, Deputy City Clerk 810-3674
PRESENTED BY: Victor Filippini, City Attorney
PURPOSE AND ACTION REQUESTED
At the direction of the City’s Liquor Commissioner, an ordinance amending the
Liquor Code to add one Class A-2 license and one Class F-5 license is presented
for Council consideration.
BACKGROUND AND DISCUSSION
The City has received applications for two new liquor licenses. The first from the
owner of the Shell Station located on the southwest corner of Deerpath and
Oakwood Avenue requesting a liquor license to allow the retail sale of alcohol
with no consumption on the premises. The second is from Ragdale, located at
1230 Green Bay Road, requesting a liquor license to allow dispensing and
consumption of alcohol on the premises of City owned property that is operated
and occupied by a not-for profit organization.
As the Council is aware, the issuance of liquor licenses is under the purview of the
City’s Liquor Commissioner and the Mayor serves in that role. However, the City
Code only authorizes a specific number of liquor licenses and historically, this
number coincides with the current number of licenses issued. When new requests
for liquor licenses are submitted, and after review by the Liquor Commissioner and
a determination that the issuance of a license is appropriate, the City Council is
asked to consider an amendment to the Liquor Code. The Council’s action does
not issue the liquor license, but instead, makes the license available for issuance
upon the final approval of the Liquor Commissioner.
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September 3, 2013 City Council Agenda
The ordinance amending the Liquor Code authorizing two additional licenses in
the classes noted above is included in the Council packet beginning on page156.
Since the Shell Station has been a subject of some discussion by the Council, a
copy of the draft license for the Shell Station, with conditions and restrictions as
directed by the Liquor Commissioner, is also included in the Council’s packet
following the ordinance.
RECOMMENDED ACTION
Waive first reading of an ordinance amending Section 4-10 of the City Code increasing
the number of liquor licenses by two and if desired by the City Council, grant final
approval.
7. NEW BUSINESS 8:45 p.m.
8. ADDITIONAL ITEMS FOR COUNCIL DISCUSSION
9. ADJOURNMENT 9:00 p.m.
Office of the City Manager August 28, 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.
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RESOLUTION
WHEREAS, ROBERT GOEPPNER has been a dedicated employee of The City of Lake
Forest since 1996; and
WHEREAS, ROBERT GOEPPNER did honorably retire from the City of Lake Forest on
August 12, 2013; and
WHEREAS, ROBERT GOEPPNER served in the following positions during his dedicated
career:
Patrol Officer
Field Training Officer
Police Sketch Artist
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LAKE FOREST that the Council, on behalf of the administration and residents of the community,
hereby expresses its appreciation and gratitude to ROBERT GOEPPNER for a public service faithfully
performed; and
BE IT FURTHER RESOLVED that the City Clerk be and hereby is instructed to deliver a copy
of this resolution duly signed by the Mayor to ROBERT GOEPPNER this 3rd day of September 2013.
Mayor
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RESOLUTION
WHEREAS, MICHAEL T. EVERT has been a dedicated employee of The City of Lake Forest
since August 11, 1987; and
WHEREAS, MICHAEL T. EVERT did honorably retire from the City on August 27, 2013;
and
WHEREAS, during his career as a Firefighter/Paramedic, MICHAEL T. EVERT
accomplished the following:
• Was awarded several honorable mentions from Lake Forest Residents
• Received several certifications from the Office of State Fire Marshal
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LAKE FOREST that the Council, on behalf of the administration and residents of the community,
hereby expresses its appreciation and gratitude to MICHAEL T. EVERT for a public service faithfully
performed; and
BE IT FURTHER RESOLVED that the City Clerk be and hereby is instructed to deliver a copy
of this resolution duly signed by the Mayor to MICHAEL T. EVERT this 3rd day of September,
2013.
Mayor
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1
LEASE AGREEMENT
THIS LEASE made and entered into this _____ day of , 2013 by and between THE
CITY OF LAKE FOREST, an Illinois home rule, special charter municipal corporation (“Landlord”), and
LAKE FOREST BANK & TRUST COMPANY an Illinois banking corporation (“Tenant”).
1. Demised Premises: Landlord, for and in consideration of the covenants contained in this Lease
and made on the part of Tenant, leases to Tenant, and Tenant leases from Landlord, that certain parcel
of land containing approximately .22 acres, and more particularly described in Exhibit A,
together with all other improvements thereon (if any), and all of Landlord’s easement rights and
appurtenances thereto (collectively the “Demised Premises”).
2. Term: This Lease shall be for an initial term of Ten (10) Lease Years (“Term”), commencing on
January 1, 2014 (“Commencement Date”). The first Lease Year shall be for a period of twelve (12)
consecutive calendar months from the Commencement Date. Each Lease Year after the first Lease Year
shall be a successive period of twelve (12) calendar months. If Tenant is not in default hereunder, the
Lease shall automatically renew for three (3) additional consecutive five (5) year terms on the same terms
and conditions, unless otherwise notified by Tenant in writing not less than one hundred eighty (180) days
prior to the expiration of the initial ten (10) year Term (or the first or second renewal term) of Tenant’s
election not to renew the Lease.
3. Rental: Tenant, in consideration of the covenants made by Landlord, covenants and agrees to
pay to Landlord in advance an annual rent (the “Rent”) for the Demised Premises in the following
amounts: (a) Commencing on January 1, 2014 an annual sum for the first Lease Year equal to
$64,129.47 as adjusted by any change in the Consumer Price Index (as defined herein) (the “CPI”) as of
October 31, 2013 in accordance with the terms and conditions set forth below; and (b) thereafter, on
January 1st of each subsequent Lease Year during the Term an annual sum for such Lease Year in an
amount equal to the prior year annual Rent payment adjusted by any change in the CPI in accordance
with the terms and conditions set forth below. For purposes of this Lease, commencing after the first
Lease Year the Rent shall be determined as follows: On October 31st of each Lease Year during the Term
(as may be extended in accordance with the terms and conditions of this Lease), the annual Rent for the
next succeeding Lease Year shall be adjusted by the change in the CPI where “CPI” is the Consumer
Price Index for the month of October just preceding such lease anniversary year and the “Base CPI” is
the Consumer Price Index for October of the prior lease year. As used herein, CPI shall mean and refer
to the table in the Consumer Price Index published by the United States Department of Labor, Bureau of
Labor Statistics Consumer Price Index for All Urban Consumers for the Chicago metropolitan area. If
such Index referred to herein shall be discontinued, then any successor Consumer Price Index of the
United States Bureau of Labor Statistics for the metropolitan Chicago area, or successor agency thereto,
shall be used, and if there is no successor Consumer Price Index, the parties hereto shall mutually agree
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2
upon and designate a substitute Index or formula. Both Landlord and Tenant agree that if the October
CPI has not been determined when the annual Rent is due, Tenant will pay the previous year rent until
the October CPI is determined and once determined in the event the adjustment in CPI results in: (i) an
amount owed by Tenant to Landlord then Tenant shall pay such additional amount within thirty (30) days
after written demand is received by Tenant from Landlord; or (ii) in an amount owed by Landlord to
Tenant then Landlord shall refund such overage to Tenant within thirty (30) days after written demand is
received by Landlord from Tenant. No subsequent adjustments or recomputations, retroactive or
otherwise shall be made to the Consumer Price Index due to any revision that may later be made to the
first published figure or the Consumer Price Index for any month.
4. Use of Demised Premises:
A. Intended Use. It is understood and agreed that the Demised Premises are intended to
be used by Tenant for a drive-up banking facility and such other uses as may be necessary or incidental
thereto (“Intended Use"). Nothing in this Lease, however, shall prevent Tenant from using the Demised
Premises for any lawful purpose in compliance with this Lease.
B. Compliance with Laws. Tenant accepts the Demised Premises "as is, where is," and
Tenant acknowledges having had the opportunity to inspect the Demised Premises prior to the
commencement Date. Tenant shall comply with all laws, ordinances, rules, regulations and orders of all
duly constituted authorities, present or future, which affect the Demised Premises or the conduct of the
Intended Use upon the Demised Premises., provided that Tenant shall not make any alterations to the
Demised Premises except in accordance with Paragraph 9 of this Lease or as mandated by the order of a
court or local building official.
5. Utilities: Landlord warrants that all utilities providing storm and sanitary sewage disposal, water,
gas, electricity, and telephone are available at the Demised Premises in adequate capacity for the
Intended Use. Landlord shall make, without charge, grants of easements, or join in applications for, all
utilities as set out above. During the Term, Tenant shall be responsible for paying for all utilities
consumed by Tenant and, as necessary, shall contract for, in its own name, the cost and expense of all
utility services rendered or furnished to the Demised Premises.
6. Taxes: Tenant shall pay as additional rent, promptly and before they become delinquent, all
general real estate taxes assessed and payable at any time during the Term of this Lease, upon or
against the land and improvements comprising the Demised Premises, lawfully assessed either in the
name of the Landlord or Tenant (the “Taxes”); provided that Landlord has advised Tenant of the amount of
such Taxes in a written notice, including a copy of the tax bill prior to the due date. In the event Landlord
fails to furnish Tenant with the notice and information described in the immediately preceding sentence at
the time therein set forth, Tenant shall nevertheless pay such Taxes (exclusive of any penalty and interest)
within twenty-five (25) days following receipt of such notice and information from Landlord and Landlord
shall be responsible for the payment of any penalties and interest which may be imposed. Tenant shall have
the right, at its sole cost and expense, to contest the Taxes with the applicable taxing authority.
7. Insurance: Tenant, at its own cost and expense, agrees to secure and keep in force from and
after the Commencement Date and throughout the Term, comprehensive general liability insurance in a
combined single limit of one million dollars ($1,000,000.00). Tenant further agrees, at its own cost and
expense, at all times throughout the Term to carry fire insurance, with extended coverage, vandalism and
malicious mischief endorsements, in an amount adequate to cover the full replacement value of all
improvements located on the Demised Premises, which amount shall be subject to the review and
approval of the Landlord.
8. Maintenance: Tenant shall maintain the Demised Premises and Tenant's Improvements (as
hereinafter defined) in good order and condition, reasonable wear and tear excepted.
9. Alterations: Tenant shall not have the right to make any alterations, additions or improvements
to the Premises without the prior written consent of the Landlord. All of such alterations, additions and
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improvements constructed by Tenant ("Tenant's Improvements") during the Term of this Lease s hall be
and remain the Property of Tenant at all times during the Term of this Lease, and may be removed by
Tenant at any time provided Tenant repairs any damage caused by such removal.
Tenant shall not allow the Demised Premises at any time during the Term to become subject to any
mechanic’s lien due to any such alterations, and Tenant agrees to indemnify and hold Landlord harmless
against all such liens. Tenant reserves the right to bond over any such lien, charge or encumbrance.
10. Damage and Destruction: In case the Tenant's Improvements on the Demised Premises shall
be damaged by any casualty (whether caused by act of God or man), Tenant shall have the option of (i)
repairing same as speedily as possible at the expense of Tenant, but in no event shall such repairs be
completed later than one hundred eighty (180) days after the date Tenant receives a building permit for
such repairs , or (ii) terminating this Lease as of the date of such damage or destruction by giving written
notice within thirty (30) days following such damage or destruction. In case the damage shall be so
extensive that it would be commercially unreasonable or unfeasible for Tenant, in its sole discretion, to
utilize the Demised Premises for its Intended Use, the rent shall abate until such restoration shall have
been completed.
11. Default:
A. Tenant Default. If there shall be a default in the payment of rent or any part thereof for
more than fifteen (15) days after Tenant receives written notice of such default from Landlord, or if there
shall be a default by Tenant in the performance of any other material covenant or material condition
herein contained for more than thirty (30) days after receipt of written notice thereof (or such longer period
as is reasonably necessary to cure such default provided that Tenant commences such cure within said
thirty (30) day period and diligently pursues such cure to completion), then, upon such events, Landlord
may as its sole and exclusive remedy (except as otherwise provided below in this Subsection 11.A)
terminate this Lease by delivering written notice to Tenant of its election to terminate this Lease and re-
enter the Demised Premises and take possession thereof, with or without process of law, and use any
reasonable or necessary force for regaining possession. However, Tenant shall have the right to remove
Tenant’s property. In the event Landlord elects to terminate this Lease and re-enter the Premises
pursuant to the terms and conditions of this subsection (A) then the termination of the Lease shall be
effective on the date which is thirty (30) days after the date Tenant receives such notice to terminate (the
“Termination Date”) and effective as of the Termination Date this Lease shall be terminated and of no
further force and effect, and Landlord and Tenant shall each be released from its obligations and liabilities
under this Lease, except for those obligations and liabilities that specifically survive the expiration of the
Term or the earlier termination of this Lease, and except that: (i) Tenant shall be and remain obligated for
any past due Rent and penalties accrued under this Lease and due and owing as of the Termination Date
that remain unpaid as of the Termination Date; and (ii) Tenant shall be liable for the reasonable actual
cost incurred by Landlord (to the extent not otherwise reimbursed by insurance to be carried by Landlord
under this Lease) for the repair of any and all physical damages to the Demised Premises caused by
Tenant, its agents, employees, contractors and invitees during Tenant's occupation of the Demised
Premises, reasonable wear and tear, condemnation and casualty excepted. With respect to Tenant's
breaches relating to the foregoing subparagraphs (i) and (ii) of this Subsection 11.A only, Landlord shall
retain all rights and remedies available under applicable law and the terms of this Lease for the
enforcement of Tenant’s obligations set forth in subparagraphs (i) and (ii) of this Subsection 11.A.
B. Landlord Default. If Landlord defaults in the observance or performance of any material
term or covenant in this Lease and does not cure said default within thirty (30) days after receipt of written
notice from Tenant (or such longer period as is reasonably necessary to cure such default provided that
Landlord commences such cure within said thirty (30) day period and diligently pursues such cure to
completion), or within twenty-four (24) hours after reasonable attempts (under the circumstances) by
Tenant to contact Landlord if the default relates to a bona fide emergency, Tenant shall have the right (in
addition to, and without limitation of, such other rights as Tenant shall have at law or in equity), but shall
not be obligated, to remedy such default. All sums expended or obligations incurred by Tenant in
connection with such remedy shall be paid by Landlord to Tenant upon demand, and if Landlord fails to
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reimburse Tenant promptly, Tenant shall have the right, in addition to any other right or remedy that
Tenant may have under this Lease, at law or in equity, to set-off or deduct such amount from subsequent
installments of rent and/or other amounts which from time to time become due to Landlord.
12. Termination by Tenant: If at any time during the Term of this Lease, the conditions of the
Demised Premises prohibit Tenant from utilizing the Demised Premises for its Intended Use, then Tenant
may, upon one hundred twenty (120) days written notice to Landlord, terminate this Lease.
13. Holding Over: Unless Landlord and Tenant otherwise agree in writing, any holdover by Tenant
after the expiration of this Lease, or any written extension thereof, shall constitute a tenancy from month
to month, at a rental rate of one hundred fifteen percent (115%) of the rental rate for the last month of the
Term of this Lease prior to holdover.
14. Assignment and Subletting: Tenant may, upon the consent of Landlord, sublease or assign this
Lease or its rights under this Lease (each, a “Transfer”); provided that Landlord's consent shall not be
unreasonably delayed, refused, or conditioned. Upon any such assignment, Tenant's assignee shall be
solely liable for the payment of all rent required to be paid under this Lease and for the performance of all
terms, covenants, and conditions undertaken by Tenant, and the Tenant shall be relieved of all
responsibility for its obligations and liabilities under this Lease. Notwithstanding the foregoing above to
the contrary, Tenant may assign its interest in this Lease or sublease all or any part of the Demised
Premises (each a "Permitted Transfer") to an Affiliate, Successor or Purchaser (each, a “Permitted
Transferee”) without Landlord's prior written consent; provided, that (i) Tenant gives Landlord a written
notice of any Permitted Transfer and (ii) with respect to a Permitted Transfer involving an assignment of
this Lease, the Permitted Transferee assumes this Lease by a written assumption agreement delivered to
Landlord. Tenant shall be released from any liability and obligation under this Lease (whether past,
present or future) by reason of such Permitted Transfer. As used herein, (A) "Affiliate" means any
person or entity who or which controls, is controlled by, or is under common control with Tenant,
including, without limitation, any holding company or parent company of Tenant, (B) "Successor" means
any business entity in which or with which Tenant is merged or consolidated in accordance with
applicable statutory provisions governing merger and consolidation of business entities, and (C)
"Purchaser" means any person or entity who or which acquires all or substantially all of the assets of
Tenant.
15. Title, Quiet Enjoyment; Landlord’s Right of Access:
A. Leasehold Title Insurance. Within thirty (30) days from the date of last execution of this
Lease, Tenant may apply for leasehold title insurance, with extended coverage, from a title company
acceptable to Tenant, covering the date of recording of the Memorandum of Lease as provided in
Paragraph 21, showing title to the Demised Premises and appurtenant easements in Landlord. If the
report on title, title binder, or commitment discloses any conditions, restrictions, liens, encumbrances,
easements or covenants which, in Tenant’s opinion, would affect Tenant’s use and enjoyment of the
Demised Premises and appurtenant easements, Landlord shall have thirty (30) days from the date
Tenant notifies Landlord of such defects to make a good faith effort to cure such defects and to furnish a
title report, binder or commitment showing such defects cured or removed; any costs assessed in
furnishing title insurance coverage over such a defect shall be borne solely by Landlord. If such defects
in title are not so cured within thirty (30) days, Tenant may, at its option, terminate this Lease.
Immediately upon final execution of this Lease, Landlord shall deliver to Tenant’s title company, if so
required, Landlord’s prior title evidence, such as title policies, a current abstract or attorney’s opinion.
B. Quiet Enjoyment. Landlord covenants and warrants to Tenant that: (i) Landlord has full
right and lawful authority to enter into this Lease for the full Term hereof; (ii) Landlord is lawfully seized of
the Demised Premises in fee simple and has good title thereto; and (iii) the Demised Premises are free
and clear of all tenancies, liens, and encumbrances. Tenant shall have and enjoy under this Lease the
quiet enjoyment and undisturbed possession of the Demised Premises throughout the Term, without any
interference or restriction by Landlord or any other person. Landlord shall provide Tenant with any and all
non-disturbance agreements, in form acceptable to Tenant, from any underlying lessor or holder of an
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encumbrance; provided, however that any such lessor or holder of an encumbrance, including without
limitation, any mortgagee shall agree that Tenant’s possession of the Demised Premises shall not be
disturbed by reason of any foreclosure of its mortgage or encumbrance or the termination of its lease, as
the case may be, so long as Tenant is not in default under the Lease.
16. Condemnation:
A. Total Taking. If, during the Term of this Lease, the entire Demised Premises is
condemned for public use under right of eminent domain, then this Lease shall be canceled and
terminated as of the date possession is required by the condemnor.
B. Partial Taking. If during the Term of this Lease, any part of the Demised Premises is
condemned for public use under right of eminent domain, and if the remainder of the Demised Premises
is not suitable for the purpose(s) for which the Demised Premises are then being used, in the sole but
reasonable judgment of Tenant, Tenant may, at its option, terminate this Lease. If Tenant shall not elect
to terminate this Lease, Landlord shall restore and rebuild the Demised Premises to provide Tenant, as
far as possible, all the improvements and building facilities existing before the taking, and the annual rent
thereafter to be paid shall be reduced by an amount that bears the same ratio to the rent herein provided
for as the amount of damages awarded (in excess of allowance for building revision) bears to the total
value prior to such taking. In addition, Rent for any portion of the Demised Premises taken or condemned
shall be abated during the unexpired Term effective as of the date when the taking occurs.
C. Damages; Termination of Lease. In any such proceeding whereby all or a part of the
Demised Premises is taken, whether or not Tenant elects to terminate this Lease, each party shall be free
to make claim against the condemning party for the amount of the actual provable damage resulting from
such proceeding. In the event streets, alleys, driveways (public or private), or sidewalks abutting the
Demised Premises or areas in which Tenant has parking or access rights are changed in any manner
whatsoever by condemnation or otherwise, by city, state or any public authority, in such manner as to
impair, in Tenant’s opinion, the parking and/or ingress and egress of vehicular or pedestrian traffic to the
Demised Premises, Tenant may terminate this Lease.
D. Notice of Taking. Landlord shall inform Tenant promptly if Landlord has knowledge of
the pendency of any such taking, condemnation, or transfer of all or a portion of the Demised Premises,
the land or other improvements or any change in their configuration and shall keep Tenant informed
about such action, so that Tenant may participate in negotiations with the condemnor. Tenant shall have
the right to assert, pursue, and realize its claims against the condemnor and/or Landlord (to the extent of
Landlord’s interest in any condemnation award or settlement in lieu thereof) whether such proceeding
was commenced before or after the commencement date of this Lease for (i) the value of any leasehold
improvements installed by Tenant at its expense, including, without limitation, the drive-up facility and any
portion thereof installed by Tenant during the term under the Prior Lease (as same is defined herein); (ii)
trade fixtures and personal property on the Demised Premises; (iii) the value of Tenant’s leasehold
interest; and (iv) Tenant’s damages for business interruption, relocation expenses, and moving expenses.
17. Fixtures, Surrender of Demised Premises:
A. Removal of Personal Property. Tenant may, upon vacating the Demised Premises, or
any time during the continuance of its tenancy, remove any and all personal property of Tenant and
Tenant Improvements (whether installed by or on behalf of Tenant or by Landlord for the benefit of
Tenant). Tenant shall repair any damage to the Demised Premises caused by such removal.
B. Surrender of Demised Premises. At the expiration of this Lease or at the earlier
termination of this Lease as herein provided, Tenant will peaceably and quietly leave the Demised
Premises and surrender possession thereof to Landlord in as good condition as existed upon the
Commencement Date, except for: reasonable wear and tear; damage by insurable casualty or for which
Tenant is not otherwise responsible; taking by eminent domain; and permitted alterations and
improvements.
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18. Indemnity:
A. Tenant agrees that it will indemnify and save Landlord [as well as Landlord's officers,
officials, employees, agents, attorneys, and representatives (collectively, the "Landlord's
Representatives")] harmless from any and all liability, damage, expense, cause of action, suits, claims, or
judgments resulting from (except if and to the extent same is caused by the negligence or willful
misconduct of Landlord or any of Landlord’s Representatives) injury to person or property of others on the
Demised Premises that arises out of any act of Tenant, or Tenant’s failure to act, in connection with
Tenant’s use of the Demised Premises, or negligence of Tenant, its agents, licensees or employees.
Landlord agrees that in the event any claim is asserted or any action brought to recover any such
damage, Landlord shall give immediate notice thereof in writing to Tenant and shall cooperate in every
way in the investigation and defense of any such claim or action, and that the handling and settlement of
any such action shall be performed and concluded by Tenant. The foregoing indemnification obligations
shall survive the expiration of the Term or the earlier termination thereof.
Tenant shall have the sole and exclusive right to retain counsel of its choice, to determine all litigation
issues including, without limitation, trial strategy, trial preparation, discovery techniques and strategy, right
of appeal, and settlement decisions all at Tenant’s expense. In the event of an adverse judgment against
the Landlord or any of the Landlord's Representatives on such claims, the judgment having become final,
and the time for all appeals having expired, Tenant agrees to cause such judgment to be satisfied within
thirty (30) days, and agrees to indemnify and hold Landlord harmless from and against any and all losses,
costs, expenses, damages, liabilities, or attorney’s fees that arise if such judgment is not so satisfied.
Landlord agrees to notify Tenant in writing by delivery to Tenant within ten (10) days, and by telephone
immediately after Landlord receives any such complaint or claim. The delivery of written notification shall
include a copy of all pleadings if a complaint is filed, or of all correspondence and exhibits if a claim is
filed.
B. Landlord agrees that it will indemnify and save Tenant and its Affiliates [as well as
Tenant’s and its Affiliates officers, officials, employees, agents, attorneys, and representatives (collectively, the
"Tenant’s Representatives")] harmless from any and all liability, damage, expense, cause of action, suits,
claims, or judgments resulting from (except if and to the extent same is caused by the negligence or
willful misconduct of Tenant or its Affiliate or any of Tenant’s Representatives) injury to person or property
of others on the Demised Premises that arises out of any act of Landlord or Landlord’s Representatives,
or Landlord’s or Landlord’s Representatives’ failure to act, in connection with Landlord’s or Landlord’s
Representatives’ use of the Demised Premises, or negligence of Landlord or Landlord’s Representatives.
Tenant agrees that in the event any claim is asserted or any action brought to recover any such damage,
Tenant shall give immediate notice thereof in writing to Landlord and shall cooperate in every way in the
investigation and defense of any such claim or action, and that the handling and settlement of any such
action shall be performed and concluded by Landlord. The foregoing indemnification obligations shall
survive the expiration of the Term or the earlier termination thereof.
Landlord shall have the sole and exclusive right to retain counsel of its choice, to determine all litigation
issues including, without limitation, trial strategy, trial preparation, discovery techniques and strategy, right
of appeal, and settlement decisions all at Landlord’s expense. In the event of an adverse judgment
against the Tenant or any of the Tenant's Affiliates or Representatives on such claims, the judgment
having become final, and the time for all appeals having expired, Landlord agrees to cause such
judgment to be satisfied within thirty (30) days, and agrees to indemnify and hold Tenant harmless from
and against any and all losses, costs, expenses, damages, liabilities, or attorney’s fees that arise if such
judgment is not so satisfied.
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Tenant agrees to notify Landlord in writing by delivery to Landlord within ten (10) days, and by telephone
immediately after Tenant receives any such complaint or claim. The delivery of written notification shall
include a copy of all pleadings if a complaint is filed, or of all correspondence and exhibits if a claim is
filed.
Nothing in this Subsection 18.B shall waive, abridge, or otherwise limit Landlord's right to assert any
immunity provided by applicable law with respect to this Subsection 18.B and any complaint or claim for
which notice is given to Landlord pursuant to this Subsection 18.B.
19. Environmental Compliance:
A. Defined Terms. For purposes of this Lease: (i) the term “Environmental Law” means
any federal, state or local laws, regulations, ordinances, rules, orders, directions, requirements or court
decrees pertaining to health, industrial hygiene, or environmental conditions including, without limitation,
the Resource Conservation and Recovery Act (as amended by the Hazardous and Solid Waste
Amendments of 1984), the Comprehensive Environmental Response, Compensation and Liability Act, the
Hazardous Materials Transportation Act, the Toxic Substance Control Act, the Occupational Safety and
Health Act, the Federal Insecticide, Fungicide and Rodenticide Act, the Clean Water Act, the Safe Water
Act, the Clean Air Act, and all similar local, state or federal laws, and the regulations, rules and
ordinances adopted and publications promulgated pursuant thereto; and (ii) the term “Regulated
Substances” shall include but shall not be limited to substances defined as “regulated substances,”
“hazardous waste”, “hazardous materials”, “hazardous substances”, “toxic substances”, “pollutants”, “toxic
pollutants”, “herbicides”, “fungicides”, “rodenticides”, “insecticides”, “contaminants”, or “pesticides”, or
terms of similar import, in any Environmental Law.
B. Indemnification.
(i) Landlord agrees to indemnify, defend, protect and hold Tenant and its Affiliates harmless
from and against any and all liability, obligations, losses, damages, penalties, claims,
environmental response and cleanup costs, fines, penalties and actions, suits, costs,
taxes, charges, expenses and disbursements, including legal fees and expenses of
whatever kind or nature, imposed on, incurred by or reserved against Tenant in any way
relating to or arising out of the release, existence, or presence of any Regulated
Substance on, under or about the Demised Premises, except to the extent that such
Regulated Substance shall have been released by Tenant other than in compliance with
applicable Environmental Law, regardless of whether or not Landlord shall have been
negligent or shall have been guilty of misconduct with respect thereto. Landlord’s
obligations set forth above shall extend to any liability, claims, or damages in any way
related to or arising out of the removal, treatment, storage, disposal, disposition,
mitigation, clean-up, or remedying of such Regulated Substances. Landlord’s obligations
hereunder shall survive the expiration or termination of this Lease and/or any transfer of
all or any portion of the Demised Premises, or of any interest in this Lease.
(ii) Tenant agrees to indemnify, defend, protect and hold Landlord and Landlord's
Representatives harmless from and against any and all liability, obligations, losses,
damages, penalties, claims, environmental response and cleanup costs, fines, penalties
and actions, suits, costs, taxes, charges, expenses and disbursements, including legal
fees and expenses of whatever kind or nature, imposed on, incurred by or reserved
against Landlord in any way relating to or arising out of the release, existence, or
presence of any Regulated Substance on, under or about the Demised Premises
released by Tenant or its Affiliates (whether during the Prior Lease or the Term of this
Lease), other than in compliance with applicable Environmental Law, regardless of
whether or not Tenant shall have been negligent or shall have been guilty of misconduct
with respect thereto. Tenant's obligations set forth above shall extend to any liability,
claims, or damages in any way related to or arising out of the removal, treatment,
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storage, disposal, disposition, mitigation, clean-up, or remedying of such Regulated
Substances. Tenant’s obligations hereunder shall survive the expiration or termination of
this Lease and/or any transfer of all or any portion of the Demised Premises, or of any
interest in this Lease.
(iii) Except with respect to conditions that trigger Tenant's obligations under Subsection
19.B(ii), in the event any presence of Regulated Substances on the Demised Premises or
any remediation by Landlord of any such Regulated Substances on the Demised
Premises either endangers any person or property in, on or about the Demised Premises
or materially interferes with the Tenant's occupancy of the Demised Premises for the
Intended Use or the conduct by Tenant of the Intended Use at the Premises, then Tenant
may elect to either: (a) abate the Rent payable by Tenant hereunder until such time as
the Regulated Substances is remediated by Landlord and Tenant is able to operate its
business from the Demised Premises without endangering any person or property and
without interference; or (b) terminate this Lease by delivering written notice to Landlord in
which event Landlord and Tenant shall each be released from its obligations and
liabilities under this Lease, except for those obligations and liabilities that by the terms of
this Lease specifically survive the expiration of the Term or the earlier termination thereof.
20. Landlord’s Warranties:
A. Representations and Warranties. In addition to Landlord’s representations and
warranties set forth elsewhere in this Lease, and not by way of limitation thereof, Landlord hereby
represents and warrants to Tenant that:
(i) This Lease constitutes the legal, valid and binding obligation of Landlord,
enforceable against Landlord in accordance with its terms.
(ii) There are no other outstanding written or oral leases (except the Prior Lease, as
such term is defined in this Lease, which shall terminate effective as of the
Commencement Date) or any purchase or sale agreements covering or in any way
affecting the Demised Premises, and no person or entity has any right with respect to the
Demised Premises (whether by option to purchase, contract or otherwise) that would
prevent or interfere with any of Tenant’s rights under this Lease.
(iii) The execution of this Lease will not constitute a violation of nor be in conflict
with nor constitute a default under any term or provision of any agreement or instrument
to which Landlord is a party or by which the Demised Premises or any part thereof is
bound.
(iv) Landlord has no knowledge of any pending or threatened proceedings in
eminent domain, or for a sale in lieu thereof, affecting the Demised Premises or any
portion thereof, or of any plans for a possible widening of the streets abutting the
Demised Premises.
(v) To the best of Landlord’s knowledge, no citation has been issued against the
Demised Premises or any part thereof for violations of any health, safety, fire,
Environmental, sewage, zoning, building or other federal, state or local law, code,
ordinance or regulation.
(vi) Landlord has not received any notice of proposed curtailment of utility services
to the Demised Premises.
(vii) Tenant is not in default or breach under the Prior Lease, and Landlord has no
notice or knowledge of any matter or event that with the giving of notice or passage of
time would constitute a default by Tenant under the Prior Lease.
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B. Survival. The provisions of this Paragraph will survive the termination or expiration of
this Lease. All of Landlord’s representations and warranties contained in this Lease shall be true as of
the date of final execution of this Lease and shall be subject to any state of facts arising during the Term
of this Lease without the direct or, indirect, active or passive, involvement of Landlord; and the language
“to the best of Landlord’s knowledge” shall apply to those to which it can reasonably be construed to
apply.
21. Memorandum of Lease: The parties agree not to record this Lease. Each party hereto agrees,
at the request of the other, to execute a memorandum of lease in recordable form and otherwise
reasonably satisfactory to Tenant’s and Landlord’s respective attorneys. In no event shall such
memorandum of lease set forth the rental or other charges payable to Tenant under this Lease, and any
such memorandum of lease shall expressly state that it is executed pursuant to the provisions contained
in this Lease and is not intended to vary the terms and conditions of this Lease.
Additionally, if such information is not contained in the memorandum of lease, when the Term of this
Lease is ascertainable and specifically fixed, or otherwise agreed to by Landlord and Tenant, Landlord
and Tenant shall enter into an amendment, which shall specify the actual date for the expiration of the
Term of this Lease and any extension Term(s).
22. Brokerage Fees: Landlord and Tenant each represent and warrant to each other that
neither has had any dealings or entered into any agreements with any person, entity, or broker in
connection with the negotiation of this Lease, and no broker, person, or entity is entitled to any
commission or finder's fee in connection with the negotiation of this Lease. Landlord and Tenant agree to
indemnify, defend, and hold the other harmless from and against any claims, damages, costs, expenses,
attorneys' fees, or liability for compensation or charges which may be claimed by any such unnamed
broker, finder, or other similar party by reason of any dealings, actions, or agreements of the indemnifying
party.
23. General Provisions:
A. Notice. Any notice or communication required or permitted to be given under this Lease
shall be in writing and shall be delivered (i), personally, (ii) by a reputable overnight courier, (iii) by
certified mail, return receipt requested, and deposited in the U.S. Mail, postage prepaid, or (iv) by
facsimile. Facsimile notices shall be deemed valid only to the extent that they are (a) actually received by
the individual to whom addressed and (b) followed by delivery of actual notice in the manner described in
either (i), (ii) or (iii) above within three business days thereafter at the appropriate address set forth below.
Unless otherwise expressly provided in this Lease, notices shall be deemed received upon the earlier of
(a) actual receipt; or (b) one (1) business day after deposit with an overnight courier as evidenced by a
receipt of deposit; or (b) three business days following deposit in the U.S. mail, as evidenced by a return
receipt. By notice complying with the requirements of this Section, each party shall have the right to
change the address or the addressee, or both, for all future notices and communications to such party,
but no notice of a change of addressee or address shall be effective until actually received.
Notices and communications to Tenant shall be addressed to, and delivered at, the following
address:
Lake Forest Bank & Trust Company
727 North Bank Lane
Lake Forest, Illinois 60045
Attn: Steve Madden, Executive Vice President
FAX: 847-234-4717
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Notices and communications to Landlord shall be addressed to, and delivered at, the following
address:
The City of Lake Forest
220 E. Deerpath
Lake Forest IL 60045
Attn: Robert R. Kiely, Jr., City Manager
FAX: 847-615-4289
B. Time of the Essence. Time is of the essence in the performance of all terms and
provisions of this Lease.
C. Governing Law. This Lease shall be governed by, and enforced in accordance with the
internal laws, but not the conflicts of laws rules, of the State of Illinois.
D. Severability. It is hereby expressed to be the intent of the parties that should any
provision, covenant, agreement, or portion of this Lease or its application to any person, entity, or
property be held invalid by a court of competent jurisdiction, the remaining provisions of this Lease and
the validity, enforceability, and application to any person, entity, or property shall not be impaired thereby,
but such remaining provisions shall be interpreted, applied, and enforced so as to achieve, as near as
may be, the purpose and intent of this Lease to the greatest extent permitted by applicable law.
E. Entire Agreement. Landlord and Tenant acknowledge and agree that they are the
parties in interest under the that certain Lease dated December 11, 1992 as amended (collectively, the
“Prior Lease”), and that effective on the Commencement Date hereof, the Prior Lease shall terminate and
be of no further force or effect, except: (i) with respect to the obligations of either party accruing prior to
the date of such termination, which obligations shall survive the termination of the Prior Lease and shall
become obligations of the corresponding party, as the case may be, under this Lease; or (ii) as otherwise
expressly provided in this Lease. Except as set forth in the preceding sentence, this Lease contains the
sole agreement between the parties and supersedes, merges, combines and completely integrates any
prior understandings or written or oral agreements between the parties respecting the subject matter. No
other representations, promises or oral agreements have been made.
F. Exhibits. Exhibit A attached to this Lease is, by this reference, incorporated in and
made a part of this Lease. In the event of a conflict between an exhibit and the text of this Lease, the text
of this Lease shall control.
G. Amendments and Modifications. No amendment or modification to this Lease shall be
effective unless and until it is reduced to writing and approved and executed by all parties to this Lease in
accordance with all applicable statutory procedures.
H. Calendar Days and Time. Any reference herein to “day” or “days” shall mean calendar
and not business days. If the date for giving of any notice required to be given hereunder or the
performance of any obligation hereunder falls on a Saturday, Sunday or Federal holiday, then said notice
or obligation may be given or performed on the next business day after such Saturday, Sunday or Federal
holiday.
I. No Third Party Beneficiaries. No claim as a third party beneficiary under this Lease by
any person, firm or corporation shall be made, or be valid, against any of the parties.
J. Counterpart Signatures. This Lease may be executed in any number of counterparts,
each of which shall be deemed to be an original, but all of which together shall constitute one and the
same instrument.
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K. Successors in Interest: The covenants, terms, conditions, provisions and undertakings
in this Lease shall extend to and be binding upon the successors and assigns of the respective parties
hereto, as if they were in every case named and expressed, and should be construed as covenants
running with the land.
L. No Waiver, Enforcement: The failure by either party to insist upon strict performance of
any covenant, warranty or condition or to enforce any of its rights under this Lease in any one or more
instances shall not be construed as a waiver in any subsequent instance of any such covenant, warranty,
condition or rights, but the same shall be and remain in full force and effect.
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TO INDICATE THEIR AGREEMENT, the parties have executed this Lease as of the day and year
appearing in their respective notary acknowledgments.
LANDLORD: THE CITY OF LAKE FOREST
By: _______________________________
Its: _______________________________
Date: _______________________________
ATTEST:
___________________________________
TENANT:
LAKE FOREST BANK & TRUST
By: ________________________________
Its: ________________________________
Date: _________________________________
# 23020377_v1
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EXHIBIT A
Legal Description of the Demised Premises
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The City of Lake Forest
CITY COUNCIL
Proceedings of the August 5, 2013 Regular Meeting
6:00 p.m. – City Hall First floor Conference room and Council Chambers
CALL TO ORDER AND ROLL CALL: Mayor Schoenheider called the meeting to order in the first
floor conference room at 6:00p.m. Deputy City Clerk Margaret Boyer called the roll of Council
members.
Present: Honorable Mayor Schoenheider, Alderman Novit, Alderman Waldeck, Alderman
Pandaleon, Alderman Moore, Alderman Pandaleon, Alderman Reisenberg, Alderman Palmer,
Alderman Adelman.
Absent: Alderman Tack
At 6:02 pm Alderman Palmer made a motion to convene into Executive Session under section 5
ILCS 120/2 (c) (11) of the Open Meeting Act for the purpose of discussing litigation. Alderman
Adelman seconded, motion carried unanimously by voice vote. Alderman Tack arrived at 6:05pm.
City Council reconvened in open session at 6:35 pm in the City Hall Council Chambers
There were approximately 45 present in the audience.
PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was recited by all in attendance.
REPORTS OF CITY OFFICERS
Comments by Mayor
A. Resolution of Sympathy for former Mayor Bruce Macfarlane
Mayor Schoenheider read the Resolution, Alderman Palmer moved, seconded by
Alderman Waldeck to approve the Resolution. Motion carried unanimously by
voice vote.
B. Resolution of Sympathy for former Alderman Mary Barb Johnson
Mayor Schoenheider read the Resolution, Alderman Pandaleon moved, seconded
by Alderman Novit to approve the Resolution. Motion carried unanimously by
voice vote.
C. Swearing in of new Police Officers Dominick Bellino, Rico Stringer and Dan
Markus
Mayor Schoenheider swore in the new Officers.
Mayor Schoenheider read an acknowledgement for Joytime Preschool; reminded and encouraged
all residents to enjoy Lake Forest Day and spoke about the ground breaking ceremony at Forest
Park. He stated the Forest Park Project Corporation had a target to raise 3.1 million dollars and
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Proceedings of the August 5, 2013
Regular City Council Meeting
was proud to announce that the Board had raised more than 50% at 1.6 million dollars. Anyone
wanting more information should visit: forestparkprojectcorporation.com
Comments by City Manager
A. Update on Sprinkling Restrictions
Michael Thomas, Director of Public Works, and Curt Volkman from the Lake Forest
Collaborative on Environmental Leadership
City Manager Robert Kiely spoke to the City Council in regarding the City’s recently-imposed
watering ban. He then introduced Michael Thomas, Director of Public Works, who gave an
overview update. In early June, the presence of growing algae was observed in raw water from
Lake Michigan. On July 11, the City of Lake Forest issued a news release to urge greater
participation in the Odd/Even Watering Restrictions. On July 15, the City opened interconnects
with Lake Bluff to assist Lake Forest in meeting water demand, and on July 24, the City enacted a
total watering ban. On July 30, the watering ban was lifted. However, the City is still urging
Odd/Even Watering Restrictions.
Mr. Thomas described daily activities a day in the water treatment plant and that it is the Illinois
Department of Natural Resources that asks all towns from May 15 to September15 to put a
sprinkling ban in place. He went on to explain short term what the City of Lake Forest can do in
response to the algae. The City sent letters to all irrigation owners to explain the algae situation,
met with irrigation system companies to solicit feedback, and sent divers to check out the intakes
in Lake Michigan.
In the long term, the City’s physical ability to filter water was looked at, along with implementing
water well at the Deerpath Golf Course and a possible rate structure. That rate structure would
give the opportunity to invest in improvements based on the sale of water.
Curt Volkman from the Lake Forest Collaborative on Environmental Leadership went on to talk
about the geologic and hydrology of the City of Lake Forest. The City has three separate systems:
Fresh water/Sanitary/Stormwater. A drop of water that falls west of Greenbay Road goes to the
Gulf of Mexico and a drop that falls east goes into Lake Michigan. He went on to explain what
residents can do to conserve our water resource: follow water restrictions, reduce use of
fertilizers/pesticides, use green infrastructure to keep water where it falls; install WaterSense
fixtures and irrigation controllers, fix indoor and outdoor leaks, don’t flush or dump
pharmaceuticals or chemicals, use phosphorous-free products, drink our City water – it’s cheap
and clean, pick up your pet waste and dispose of it in the trash and lastly, don’t feed the gulls and
pick up your garbage at the beach.
B. Com Ed Annual Report- External Affairs Manager, James Dudek
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Proceedings of the August 5, 2013
Regular City Council Meeting
City Manager, Robert Kiely introduced James Dudek, who gave a presentation on the electrical
system improvements Com Ed made in 2012, 2013 Grid Modernization work along with SMART
meter deployment and Communications update.
Comments by Council Members
A. Long Term Financial Planning (Finance Committee)
Mayor Schoenheider altered the agenda placing this item after item # 6.
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 July 1, 11 and 15, 2013 City Council minutes.
2. Approval of Check register from June 22 to July 26, 2013
3. Approval of Seasonal Brochure Printing Bid
4. Approval of Contract for Annual Tree Planting for FY14 Budget
5. Approval of Contract for Installation of Holiday Lights in the Central Business
District and Waukegan & Everett Road Berm
6. Adopting the June 11, 2013 amendment of Lake County Watershed
Development Ordinance to remain a Lake County Certified Stormwater
Community
7. Award of Contract for Northcroft Park’s Parking Lot Resurfacing and Bike Path
and Triangle Park’s Walking Path
8. Consideration of Ordinances Approving Recommendations from the Building
Review Board. (First Reading and if Desired by the City Council, Final Approval)
9. Consideration of an Ordinance Approving a Recommendation from the Historic
Preservation Commission. (First Reading and if Desired by the City Council, Final
Approval)
10. Consideration of an Ordinance Approving a Recommendation from the Zoning
Board of Appeals. (First Reading, and if Desired by the City Council, Final
Approval)
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Proceedings of the August 5, 2013
Regular City Council Meeting
11. Award of contract for Wedgewood Lot Site Preparation for Single Family Home
Development Project.
12. Dissolve Gorton Commission
RECOMMENDED ACTION: Approve the twelve (12) Omnibus items as presented.
Mayor Schoenheider asked the Council if they would like any item removed or be taken
separately. Attorney Victor Filippini asked for a scrivener’s error correction on the July 11 minutes.
Mayor Schoenheider asked for a motion to approve the twelve (12) Omnibus items with
correction to the July 11 minutes.
Alderman Palmer made a motion to approve the Omnibus items as presented with the correction,
seconded by Alderman Reisenberg. The following voted “Yea”: Aldermen Novit, Waldeck, Moore,
Tack, Pandaleon, Reisenberg, Palmer and Adelman. The following voted “Nay”: None. 8 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
1. Consideration of an Ordinance Approving a Recommendation from the Historic
Preservation Commission. (Final Approval)
Catherine Czerniak, Director of Community Development spoke to the Council regarding the
recommendation from the Historic Preservation Commission. This was presented to the City
Council for consideration at the July 15th meeting. After hearing public testimony and Council
deliberation, the Council approved first reading of an Ordinance approving the petition. This
petition is now before the City Council for final consideration.
To clarify some questions on the Building Scale Ordinance, Catherine Czerniak explained that there
is a single method established by Ordinance for calculating the allowable square footage for lots
and the same method is used throughout the City. The Ordinance provides the opportunity for
any property owner to request a variance from the allowable square footage and provides that
requests for variances for properties within the historic districts or designated as local landmarks
are under the purview of the HPC and requests for variances for properties that are outside of the
historic districts are under the purview of the BRB and that in both cases, final action by the City
Council is required. There are six criteria established by the Ordinance and the Ordinance directs
that the same criteria be used by the HPC, BRB and City Council in evaluating requests for a
variance from the Ordinance. These criteria were supplied verbatim in the City Council packet.
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Proceedings of the August 5, 2013
Regular City Council Meeting
A recap of this petition and the findings of the Historic Preservation Commission were specified. There
were questions raised as to the size in comparison to the original coach house and a question about the
design reasoning. Mayor Schoenheider asked if there was anyone who would like to address the Council.
Tom Hunter, son of the Hunters at 1090 N Sheridan Road, offered his opinion to the City Council.
The City Council had a discussion in relation to accessory buildings; the longstanding efforts that the City
has made; and the perception of overall fairness of the Bulk Ordinance as related to Historic
Preservation.
RECOMMENDED ACTION: Grant final approval of the Ordinance in accordance with the
recommendation of the Historic Preservation Commission.
Alderman Pandaleon made a motion to grant final approval in accordance with the
recommendation of the Historic Preservation Commission, seconded by Alderman Reisenberg.
The following voted “Yea”: Aldermen Waldeck, Moore, Pandaleon, Reisenberg and Palmer. The
following voted “Nay” Alderman Novit, Tack and Adelman: 5 Yeas, 3 Nays, motion carried.
2. Consideration of an Ordinance Amending Chapter Four of the City Code
Regarding Liquor Licenses
City Attorney Victor Filippini explained that staff is requesting approval of an Ordinance amending
Chapter 4 of the City Code regarding liquor licenses that on May 20, 2013, the City Council
approved amendments to The City of Lake Forest Liquor Code. The amendments clarified rules
regarding tastings associated with package sales. The regulations regarding the giveaway of
alcohol were not amended at that time to reflect those clarifications. To correct this scrivener's
error, this Ordinance clarifies that those establishments that are authorized to provide tastings are
not prohibited from the giveaway of alcohol. This Ordinance also revised the number of licenses
available to reflect: (i) Authentico's desire to downgrade its existing license, which authorizes
package sales and consumption on the premises of a restaurant, to a license that only allows
consumption on the premises of a restaurant but does not allow for package sales and (ii) Elawa's
desire to not renew its existing license.
The question of open licenses was discussed and the reasoning behind not having open licenses
available to petitioners, historically the City Council has been putting the petitioner into the
position of proving that issuing the liquor license is in the best interest of the City.
RECOMMENDED ACTION: If desired by the City Council, waive first reading and grant final
approval.
Alderman Palmer made a motion to waive first reading, seconded by Alderman Reisenberg.
Motion carried unanimously by voice vote.
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Proceedings of the August 5, 2013
Regular City Council Meeting
Alderman Palmer then made a motion to grant final approval, seconded by Alderman Reisenberg.
The following voted “Yea”: Aldermen Novit, Waldeck, Moore, Tack, Pandaleon, Reisenberg,
Palmer and Adelman. The following voted “Nay”: None. 8 Yeas, 0 Nays, motion carried.
3. Consideration of a Request for a Liquor License for the Shell Station located at
193 E. Deerpath. (Motion, if desired by the City Council, directing preparation of
an Ordinance adding a liquor license)
Director of Community Development, Catherine Czerniak, introduced this topic. The City Council,
in amending the liquor code in May 2013, eliminated the prohibition of a gas station selling
alcohol in the City of Lake Forest. Since the May meeting, at the direction of the City Council, City
staff from the City Manager’s Office, the Police Department and Community Development met
with representatives of the Shell Station on several occasions. In response to the discussions, the
Shell Station owner submitted materials for City review including a floor plan indicating the
proposed location for alcohol in the store, an overview of proposed security measures, an
application for a liquor license and information on various upgrades planned to the overall
property.
City Staff felt it was inappropriate to recommend whether or not to issue a license but rather to
supply the Council with adequate information to make an informed decision.
Alderman Palmer brought a Point of Order to the attention of the Council: that it is the Liquor
Commissioner’s decision as to whether or not to issue a license, and that the City Council only
votes pro forma. He moved to table this item.
Mayor Schoenheider recognized what Alderman Palmer had to say, but felt that since the owner
was present, and due to the amount of time and effort that staff put into this, he would like to
hear from the petitioner.
Bill Lombardis, owner of the Shell, stated he met with City Staff and said that he understood the
conditions that staff had recommended should he be granted a license.
Chief of Police James Held spoke of the Police Department’s support of LEAD and SPEAK UP! in
limiting the accessibility of alcohol to minors.
The City Council then had a discussion of the appropriateness of issuing a liquor license to the
Shell gas station.
The City Council took a break at 8:55 pm and re-convened at 9 pm
COMMENTS BY COUNCIL MEMBERS
A. Long Term Financial Planning (Finance Committee)
Due to the late hour, Mayor Schoenheider has asked for a abbreviated presentation from Finance
Director, Elizabeth Holleb and City Manager, Robert Kiely, with the understanding of how
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Proceedings of the August 5, 2013
Regular City Council Meeting
important this is, and that the Council will see this presentation in its entirety in the very near
future.
Finance Director Elizabeth Holleb told the City Council that The City is currently in excellent
financial condition, has a balanced budget for the current fiscal year and carries the AAA rating at
Moody’s Investors service.
The City of Lake Forest is extremely proactive in dealing with its finances and does a 5-year
forecast which gives a long range look at what decisions made today are and how they may
impact the finances going forward.
The 5-Year Forecasts for the General and Capital Improvement Fund have identified long-range
budgetary challenges.
The General Fund is currently forecast to have a deficit in Fiscal Year 2017, despite the City’s
aggressive efforts to reduce personnel and identify more cost-effective strategies to providing
services during a prolonged period of national economic recession and tepid recovery.
Funding available for the City’s Capital Improvement Program is not currently sufficient to meet
the projected demands. Prior to initiating the Fiscal Year 2015 budget process, it is recommended
that the City Council and staff explore options available to the City to address the challenges on
the horizon.
Finance Director Elizabeth Holleb spoke briefly on expenses and revenues and then about the
more time sensitive issue of Bond refinancing. The construction budget anticipated $13 million
from proceeds of Laurel Avenue site and in 2010 Bonds were issued due to the delayed
redevelopment of Laurel Avenue property. Amounts due are $9.7 million – due December 2015
and remaining $3.0 million – due 2029 through 2032. These had been issued under the economic
stimulus act. The question posed as to whether or not the City would benefit from refinancing the
part of the issue that is due December 2015. This topic has been broached with the PPL
Committee in April and the Finance Committee in July. Because The City of Lake Forest is not
issuing any other debt in 2013 the refinancing could be accomplished with bank qualified status
which provides a slightly lower interest rate because the amount of money is under $10 million in
a calendar year. The first opportunity for the issue to be refunded is September 15, 2013 without
jeopardizing the single opportunity to advance refund before a call date. Since The City of Lake
Forest did not use the advance refunding, it will provide added flexibility in paying off those bonds
earlier and added flexibility in redeveloping Laurel Avenue property because there would the
single payment due December 2015. It would also provide level principal and interest payments
over the life of the Bond issue. The refinance goes to market on September 16 and will be
presented to the City Council that evening for approval.
City Manager, Robert Kiely, asked the Council to look at the following questions:
• Should the City postpone MS Bond refinancing given recent changes in interest rates?
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Regular City Council Meeting
• Should alternative revenue sources be studied?
• Should reductions in level of service be explored? If so, are any specific areas of interest?
• Should City’s position on property tax limitations (tax cap and debt service limit) be
reconsidered?
• Should City pursue tiered water rates to encourage water conservation?
He also asked the City Council for discussion on each. He went on to say that this discussion on
these very important considerations and actions is necessary to continue the fiscal stewardship of
the City of Lake Forest.
Mayor Schoenheider added what a terrific job Finance Director Elizabeth Holleb has done and he
is asking the City Council to think out of the box on the above considerations. He also confirmed
that Elizabeth Holleb should continue to move forward on the bond refinancing.
RECOMMENDED ACTION: Informational item for discussion.
NEW BUSINESS
Seeing none
ADDITIONAL ITEMS FOR COUNCIL DISCUSSION
Seeing none
ADJOURNMENT
There being no further business. Alderman Palmer made a motion to adjourn, seconded by
Alderman Pandaleon. Motion carried unanimously by voice vote at 9:31pm
Respectfully Submitted,
Margaret Boyer
Deputy City Clerk
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.
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New Issue DRAFT 8/20/13 Investment Rating:
Date of Sale: Monday, September 16, 2013 Moody’s Investors Service …
10:45 – 11:00 A.M., C.D.T. (Open Speer Auction) (Rating Requested)
Official Statement
The delivery of the Bonds is subject to the opinion of Katten Muchin Rosenman LLP, Bond Counsel, to the effect that under existing law, interest on the Bonds is not includable
in the gross income of the owners hereof for federal income tax purposes and that, assuming continuing compliance with the applicable requirements of the Internal Revenue Code of 1986,
interest on the Bonds will continue to be excluded from the gross income of the owners thereof for federal income tax purposes. Interest on the Bonds is not an item of tax preference for
purposes of computing individual or corporate alternative minimum taxable income, but must be taken into account as earnings and profits of a corporation when computing corporate
minimum taxable income for purposes of the corporate alternative minimum tax. See TAX EXEMPTION” herein. The Bonds are designated “qualified tax-exempt obligations” under
Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. See “QUALIFIED TAX-EXEMPT OBLIGATIONS” herein. Interest on the Bonds is not exempt from present
Illinois income taxes.
$9,840,000*
CITY OF LAKE FOREST
Lake County, Illinois
General Obligation Refunding Bonds, Series 2013
Dated Date of Delivery Book-Entry Bank Qualified Due Serially December 15, 2014, 2015 and 2017-2032
The $9,840,000* General Obligation Refunding Bonds, Series 2013 (the “Bonds”) are being issued by the City of Lake Forest, Lake County, Illinois (the
“City”). Interest on the Bonds is payable semiannually on June 15 and December 15 of each year, commencing June 15, 2014. The Bonds will be issued using a
book-entry system. The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the Bonds. The ownership of one fully
registered Bond for each maturity will be registered in the name of Cede & Co., as nominee for DTC and no physical delivery of Bonds will be made to purchasers.
The Bonds will mature on December 15, in the following years and amounts. Interest is calculated based on a 360-day year of twelve 30-day months.
AMOUNTS*, MATURITIES, INTEREST RATES, PRICES OR YIELDS AND CUSIP NUMBERS
Principal Due Interest Yield or CUSIP Principal Due Interest Yield or CUSIP
Amount* Dec. 15 Rate Price Number Amount* Dec. 15 Rate Price Number
$ 65,000 ..... 2014 _____% _____% __________ $ 460,000 .... 2024 _____% _____% __________
100,000 ..... 2015 _____% _____% __________ 475,000 .... 2025 _____% _____% __________
******* ..... **** 480,000 .... 2026 _____% _____% __________
100,000 ..... 2017 _____% _____% __________ 495,000 .... 2027 _____% _____% __________
200,000 ..... 2018 _____% _____% __________ 930,000 .... 2028 _____% _____% __________
350,000 ..... 2019 _____% _____% __________ 960,000 .... 2029 _____% _____% __________
430,000 ..... 2020 _____% _____% __________ 1,085,000 .... 2030 _____% _____% __________
435,000 ..... 2021 _____% _____% __________ 1,120,000 .... 2031 _____% _____% __________
440,000 ..... 2022 _____% _____% __________ 1,265,000 .... 2032 _____% _____% __________
450,000 ..... 2023 _____% _____% __________
Any consecutive maturities may be aggregated into term bonds at the option of the bidder,
in which case the mandatory redemption provisions shall be on the same schedule as above.
OPTIONAL REDEMPTION
The Bonds maturing on or after December 15, 2022, are callable in whole or in part on any date on or after December 15, 2021, at a price of par and
accrued interest. If less than all the Bonds are called, they shall be redeemed in such principal amounts and from such maturities as determined by the City and
within any maturity by lot. See “OPTIONAL REDEMPTION” herein.
PURPOSE, LEGALITY AND SECURITY
The proceeds of the Bonds will be used: (i) to currently refund the City’s outstanding General Obligation Bonds, Series 2010A, and (ii) to pay the costs
of issuance of the Bonds. See “PLAN OF FINANCING” herein.
In the opinion of Katten Muchin Rosenman LLP, Chicago, Illinois, Bond Counsel, the Bonds are valid and legally binding general obligations of the City
and the City is obligated to levy ad valorem taxes upon all the taxable property within the City for the payment of the Bonds and the interest thereon without
limitation as to rate or amount. However, the enforceability of rights or remedies with respect to the Bonds may be limited by bankruptcy, insolvency or other laws
affecting creditors’ rights and remedies heretofore or hereafter enacted.
The Bonds have been designated “qualified tax-exempt obligations” under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. See
“QUALIFIED TAX-EXEMPT OBLIGATIONS” herein.
This Official Statement is dated _______ __, 2013, and has been prepared under the authority of the City. An electronic copy of this Official Statement
is available from the www.speerfinancial.com web site under “Debt Auction Center/Official Statements Sales Calendar/Competitive”. Additional copies may be
obtained from Ms. Elizabeth Holleb, Director of Finance, City of Lake Forest, 800 North Field Drive, Lake Forest, Illinois 60045, or from the Independent Public
Finance Consultants to the City:
Established 1954
Speer Financial, Inc.
INDEPENDENT PUBLIC FINANCE CONSULTANTS
ONE NORTH LASALLE STREET, SUITE 4100 • CHICAGO, ILLINOIS 60602
Telephone: (312) 346-3700; Facsimile: (312) 346-8833
*Subject to change. www.speerfinancial.com
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City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
2
For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission, this document, as
the same may be supplemented or corrected by the City from time to time (collectively, the “Official Statement”), may
be treated as an Official Statement with respect to the Bonds described herein that is deemed near final as of the date
hereof (or the date of any such supplement or correction) by the City.
The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates,
principal amounts and interest rates of the Bonds, together with any other information required by law or deemed
appropriate by the City, shall constitute a “Final Official Statement” of the City with respect to the Bonds, as that term
is defined in Rule 15c2-12. Any such addendum shall, on and after the date thereof, be fully incorporated herein and
made a part hereof by reference.
No dealer, broker, salesman or other person has been authorized by the City to give any information or to make
any representations with respect to the Bonds other than as contained in the Official Statement or the Final Official
Statement and, if given or made, such other information or representations must not be relied upon as having been
authorized by the City. Certain information contained in the Official Statement and the Final Official Statement may
have been obtained from sources other than records of the City and, while believed to be reliable, is not guaranteed as
to completeness. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT
AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF
THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER
EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE
IN THE AFFAIRS OF THE CITY SINCE THE RESPECTIVE DATES THEREOF.
References herein to laws, rules, regulations, ordinances, resolutions, agreements, reports and other documents
do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by
reference to the particular document, the full text of which may contain qualifications of and exceptions to statements
made herein. Where full texts have not been included as appendices to the Official Statement or the Final Official
Statement they will be furnished on request. This Official Statement does not constitute an offer to sell, or solicitation
of an offer to buy, any securities to any person in any jurisdiction where such offer or solicitation of such offer would
be unlawful.
67
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
3
TABLE OF CONTENTS
BOND ISSUE SUMMARY ............................................................................................................................ 4
THE CITY ................................................................................................................................................ 5
Route 60 Corridor Development ................................................................................................................... 6
Central Business District ............................................................................................................................ 7
Looking Forward - Development Opportunities ................................................................................................. 8
Municipal and Other Governmental Services .................................................................................................... 8
Schools/Hospitals ..................................................................................................................................... 9
SOCIOECONOMIC INFORMATION .............................................................................................................. 11
Employment .......................................................................................................................................... 11
Building Permits ..................................................................................................................................... 13
Income ................................................................................................................................................. 13
Retail Activity ........................................................................................................................................ 15
PLAN OF FINANCING ............................................................................................................................... 15
DEBT INFORMATION ............................................................................................................................... 16
PROPERTY ASSESSMENT AND TAX INFORMATION ..................................................................................... 17
Real Property Assessment, Tax Levy and Collection .......................................................................................... 19
Property Tax Extension Limitation Law ......................................................................................................... 21
Truth in Taxation Law .............................................................................................................................. 21
FINANCIAL INFORMATION ....................................................................................................................... 21
Budgetary Information .............................................................................................................................. 21
Investment Policy .................................................................................................................................... 22
Financial Reports .................................................................................................................................... 23
No Consent or Updated Information Requested of the Auditor .............................................................................. 23
Summary Financial Information ................................................................................................................... 23
EMPLOYEE RETIREMENT AND OTHER POSTEMPLOYMENT BENEFITS OBLIGATIONS ..................................... 26
REGISTRATION, TRANSFER AND EXCHANGE ............................................................................................. 27
Registration ........................................................................................................................................... 27
Transfers and Exchanges ........................................................................................................................... 27
TAX EXEMPTION .................................................................................................................................... 27
Summary of Bond Counsel Opinion .............................................................................................................. 27
Bonds Purchased at a Premium or a Discount .................................................................................................. 28
Exclusion From Gross Income Requirements ................................................................................................... 28
Risks of Non-Compliance .......................................................................................................................... 29
Federal Income Tax Consequences ............................................................................................................... 29
QUALIFIED TAX-EXEMPT OBLIGATIONS .................................................................................................... 29
CONTINUING DISCLOSURE ....................................................................................................................... 29
OPTIONAL REDEMPTION ......................................................................................................................... 31
NOTICE OF REDEMPTION ......................................................................................................................... 31
LITIGATION ............................................................................................................................................ 31
LEGAL MATTERS .................................................................................................................................... 31
OFFICIAL STATEMENT AUTHORIZATION ................................................................................................... 31
INVESTMENT RATING ............................................................................................................................. 32
DEFEASANCE AND PAYMENT OF BONDS ................................................................................................... 32
UNDERWRITING ..................................................................................................................................... 32
FINANCIAL ADVISOR .............................................................................................................................. 33
CERTIFICATION ...................................................................................................................................... 33
APPENDIX A - EXCERPTS OF FISCAL YEAR 2012 AUDITED FINANCIAL STATEMENTS
APPENDIX B - DESCRIBING BOOK-ENTRY-ONLY ISSUANCE
APPENDIX C - PROPOSED FORM OF OPINION OF BOND COUNSEL
APPENDIX D - EXCERPTS OF FISCAL YEAR 2012 AUDITED FINANCIAL STATEMENTS
RELATING TO THE CITY’S PENSION PLANS AND OTHER POSTEMPLOYMENT BENEFITS
OFFICIAL BID FORM
OFFICIAL NOTICE OF SALE
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City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
4
BOND ISSUE SUMMARY
This Bond Issue Summary is expressly qualified by the entire Official Statement, which is provided for the convenience of
potential investors and which should be reviewed in their entirety by potential investors.
Issuer: City of Lake Forest, Lake County, Illinois.
Issue: $9,840,000* General Obligation Refunding Bonds, Series 2013.
Dated Date: Date of delivery (expected to be on or about October 3, 2013).
Interest Due: Each June 15 and December 15, commencing June 15, 2014.
Principal Due: Serially each December 15, commencing December 15, 2014, 2015 and 2017 through 2032, as
detailed on the front page of this Official Statement.
Optional Redemption: The Bonds maturing on or after December 15, 2022, are callable in whole or in part on any date
on or after December 15, 2021, at a price of par and accrued interest. See “OPTIONAL
REDEMPTION” herein.
Authorization: The City is a home rule unit under the 1970 Illinois Constitution, has no debt limitation, and is
not required to seek referendum approval to issue the Bonds.
Security: The Bonds are valid and legally binding general obligations of the City and the City is obligated
to levy ad valorem taxes upon all the taxable property within the City for the payment of the
Bonds and the interest thereon without limitation as to rate or amount. However, the
enforceability of rights or remedies with respect to the Bonds may be limited by bankruptcy,
insolvency or other laws affecting creditors’ rights and remedies heretofore or hereafter
enacted.
Credit Rating: The City’s outstanding general obligation bond rating is “Aaa” from Moody’s Investors Service,
New York, New York (“Moody’s”). A credit rating for the Bonds has been requested from
Moody’s. See “INVESTMENT RATING” herein.
Purpose: The proceeds of the Bonds will be used: (i) to currently refund the City’s outstanding General
Obligation Bonds, Series 2010A, and (ii) to pay the costs of issuance of the Bonds. See “PLAN
OF FINANCING” herein.
Tax Exemption: Katten Muchin Rosenman LLP, Chicago, Illinois, will provide an opinion as to the tax
exemption of the Bonds as discussed under “TAX EXEMPTION” in this Official Statement.
Interest on the Bonds is not exempt from present State of Illinois income taxes.
Bank Qualified: The Bonds have been designated “qualified tax-exempt obligations” under Section 265(b)(3) of
the Internal Revenue Code of 1986, as amended. See “QUALIFIED TAX-EXEMPT
OBLIGATIONS” herein.
Bond Registrar/Paying Agent/
Escrow Agent: Wells Fargo Bank, N.A., Chicago, Illinois.
Book-Entry Form: The Bonds will be registered in the name of Cede & Co. as nominee for The Depository Trust
Company (“DTC”), New York, New York. DTC will act as securities depository of the Bonds.
See APPENDIX B herein.
Denomination: $5,000 or integral multiples thereof.
Delivery: The Bonds are expected to be delivered on or about October 3, 2013.
Financial Advisor: Speer Financial, Inc., Chicago, Illinois.
*Subject to change.
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City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
5
CITY OF LAKE FOREST
Lake County, Illinois
Donald P. Schoenheider
Mayor
Council Members
Michael R. Adelman Robert T. Palmer Jack Reisenberg
David Moore George A. Pandaleon Stanford Tack
Kent Elliott Novit Catherine A. Waldeck
_______________________________
Officials
Margaret Boyer
Deputy City Clerk
Robert R. Kiely, Jr.
City Manager
Elizabeth Holleb
Director of Finance
Victor P. Filippini, Jr., Esq.
City Attorney
THE CITY
The City of Lake Forest (the “City”) is a home-rule municipality located in Lake County approximately 30
miles north of downtown Chicago. It is one of the eight Chicago suburban communities north of Chicago fronting on
Lake Michigan collectively referred to as "the North Shore.” The City's eastern boundary is Lake Michigan from
which the City obtains its public water supply. To the south of the City along Lake Michigan is the former Fort
Sheridan Military Base the northern portion of which is located within the boundaries of the City of Lake Forest. A
portion of the site remains in the ownership of the Federal government and continues to be used as a military reserve
base. The remainder of the site, 127 acres, is now in the ownership of the Lake County Forest Preserve District and is
preserved open space. The Forest Preserve has completed significant restoration work at this site including the removal
of non-native trees and vegetation, re-grading to establish swales, stabilization and enhancement of the existing ravine,
pond and bluff. Improved public access to Lake Michigan and completion of an interpretive trail were also part of this
project. Today, the former military base is an expansive natural area, miles of walking trails and beach frontage, all
open to the public. The restored area provides impressive views of Lake Michigan from Sheridan Road found at no
other location on the North Shore. The Forest Preserve, along with neighboring communities, is continuing discussions
about possible grant funding to continue restoration of ravines and bluffs all along this North Shore corridor.
Like many communities in the Chicagoland area, the 2010 Census reflected a slight decrease in the City’s
population. The 2010 Census indicated a population of 19,375 in the City of Lake Forest. This number is down 3.4%
from the City’s peak population of 20,059 as documented by the 2000 Census. In part, the population loss results from
the closing of Barat Campus in early 2,000. Students living on campus were included in the 2000 Census. The 2010
Census indicated an increase of 443 housing units in the City and a slightly more diverse population living in the
community than at the time of the 2000 Census.
The western boundary of the City is the center of the Illinois Toll Road (I-94), and three interchanges serve the
City. With two commuter railroads, the divided four-lane U.S. Route 41 (Skokie Highway) which connects to the
Edens Expressway on the south and Wisconsin I-94 on the north, scenic Green Bay Road and Sheridan Road, four-lane
Waukegan Road (Illinois Route 43) and the aforementioned Illinois Toll Road, the transportation arteries serving Lake
Forest are abundant.
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$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
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Long acknowledged to be one of the most prestigious residential communities in the United States, the City is
rich in history. Among the existing structures in the City are residences dating back to 1846, Market Square
(downtown Lake Forest which, when constructed in 1916, was reported to be the first shopping center in the U.S.),
many churches and educational institutions and the estates of many of the nation's most famous private entrepreneurs.
Route 60 Corridor Development
On October 3, 1988, the City voted to annex a 682 acre area at the western edge of the City thereby taking
control of the ultimate development of the large undeveloped area extending to the Illinois Toll Road. As a part of the
pre-annexation agreement, the City and the owners agreed to the development of the 682 acres plus an additional 90
acres already in the City. This area is developed with Conway Park premier corporate office park, Conway Farms
residential development set on a picturesque golf course and offering attached and detached residential products,
Stonebridge empty nester residential development and Townline Park which is a City owned community park developed
with baseball diamonds, soccer fields, a pavilion, playground and extensive walking trail. The build out of both the
Conway Farms and Stonebridge residential developments is complete.
Conway Park office park is nearly built out and includes thirteen office buildings ranging in size from 60,000 to
270,000 square feet. The buildings serve as the corporate headquarters for various companies including Abbott,
Hospira, Brunswick, Pactiv, Tenneco Automotive, Trustmark and Packaging Corporation of America. Three buildings
within the office park are multi-tenant buildings providing high quality office opportunities for small and medium size
businesses. In 2004, an important dimension was added to Conway Park with the construction of the 32,000 square
foot Lake Forest Graduate School. The Graduate School was formerly located on the campus of Lake Forest College.
The Graduate School building serves as the school’s headquarters and houses both administrative functions and
classrooms with branches at other locations throughout the Chicagoland area. The Graduate School has formed a
strong relationship with various corporations within the park as well as some located elsewhere and offers corporate and
leadership training programs in support of those corporations as well as its well respected MBA program. Four parcels
in the office park remain available for development and discussions are underway regarding development of these
parcels in the coming year. Adding a hotel to Conway Park to support the businesses is a goal that may soon be
realized.
Two additional corporate office buildings, each about 170,000 square feet, are located to the south of Conway
Park, on the south side of Route 60, just east of the Illinois Tollway. Solo Cup and Dart are headquartered in these
buildings and Abbott occupies portions of the space completing the City’s corporate office district.
The National Football League franchise Chicago Bears corporate headquarters, player training center, broadcast
studio, conference center and indoor and outdoor practice fields are located at the north end of Conway Park. The
Chicago Bears have had a long association with Lake Forest with a practice field located at Lake Forest College before
the team’s move to Conway Park in 2004. To complete Conway Park, and to address uncertainties about the long term
use of the remaining property adjacent to Conway Park and the Chicago Bears facility at the north end of the office
park, the City acquired and annexed a 40 acre parcel. This parcel was developed with The City of Lake Forest
Municipal Services Facility which opened in August 2009. The facility houses City administrative staff from various
departments in a first class office building. The City’s fleet of vehicles and equipment is also housed at this location in
a state of the art garage supporting the high level of service delivered to the residents of Lake Forest. The City facility
also offers public meeting rooms and an on site training room. Almost 20 acres of the City site has been preserved as
open space and wetlands through a cooperative effort between the City, Lake Forest Open Lands Association and the
Lake County Forest Preserve. The preserved area is now under the stewardship of the Lake County Forest Preserve.
Prior to transferring the property to the Forest Preserve, the City took the lead on various site improvements most
notably, reclamation of a barrow pit left from the construction of the Tollway many years ago. This area is now re-
created as a series of shallow wetlands providing for enhanced water quality as water flows from a large tributary area
toward the Middlefork Savanna. This area is being improved with walking trails and bridges as an amenity for
employees of Conway Office Park and for the public. Wildlife abounds in the area.
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*Subject to change.
7
In addition to the development of the corporate office park in the Lake Forest Route 60 Corridor, other
development activity continues in the corridor. Amberley Woods, a 40 acre development comprised of 90 residential
condominium units and 24 single family homes is partially completed. The first of two 45-unit condominium buildings
is completed and fully occupied. Pre-sales are underway for the second condominium building with a construction start
date still to be determined. The first two single family homes are complete and an updated design for the remaining
homes was recently approved by the City. The redesign provides a greater range of housing unit sizes and price points
in response to buyer interest. The Amberley Woods development is clustered around preserved wetlands and
woodlands providing a sheltered residential neighborhood with easy access to the Tollway. There is a 10 acre non-
residential component of the Amberley Woods development and discussions are underway about the right mix of
commercial uses for this parcel. A mix of neighborhood friendly retail, restaurants and service businesses is being
considered for the benefit of Lake Forest residents living in the area, but also to support the large number of employees
in Conway Park. On the north side of Route 60, another residential project is underway, Willow Lake, a 52 unit
townhouse development. This development is partially completed with five duplex buildings in various stages of
completion. The development, although close to Route 60, is hidden from views of traffic and is located on a natural
lake, in a secluded area, across from Lake Forest Academy, a private school. Almost every property in this
development has views of the natural pond or the new pond that was added to the site during construction. The
infrastructure throughout the development is complete and the development is currently being actively marketed.
Central Business District
The City’s Central Business District is focused around historic Market Square. Market Square was designed by
famed architect, and Lake Forest resident, Howard Van Doren Shaw and construction of the square began in 1915.
Market Square is still held up today by planners and architects throughout the Country as an extraordinary model of a
town center. Market Square and the surrounding blocks that make up the City’s core area are home to various unique
boutique retail stores, some national chains, restaurants (one located in the City’s former fire station), banks, real estate
offices, a commuter train station, City Hall and the post office. Although the City is committed to preserving the
historic character of the Central Business District, the City actively works with property owners and developers to
support adaptive reuse, restoration and redevelopment of properties in the Central Business District. With careful
planning and attention to preserving the character that makes Lake Forest special, projects like the cleanup and
redevelopment of a former gas station and car dealership site occurred in 2004. Today, the site is an active part of the
Central Business district with a two story bank building and a smaller building housing several new retail businesses
that have become community favorites. At another location in the Central Business District, the site of a former
building materials yard was redeveloped with the City’s first residential rowhouse project providing high end housing
near the business district and within walking distance of the train.
In 2010, major infrastructure upgrades and streetscape improvements were completed along Western Avenue,
the main street through the Central Business District. A key intersection was re-aligned, the sewer system was
upgraded, parking spaces were reconfigured to better meet customer needs, pedestrian crossings were added, the street
was re-constructed, enhanced streetscape lighting was installed and the entire area was re-landscaped. In response,
some private property owners in the Central Business District have re-invested in their properties with new signage and
awnings and overall maintenance work on the buildings.
The City recently received grants to support restoration of the historic train station which is located immediately
across from historic Market Square. The first phase of exterior restoration is complete and further work is planned
including interior improvements, a bicycle shelter and realigned bicycle path to support the City’s commuter hub.
Shortly after completion of the first phase of the project, a local garden shop opened a satellite location at the train
station filling the area with flowers and seasonal color and attracting customers to this convenient new location, right in
the center of the community.
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City of Lake Forest, Lake County, Illinois
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*Subject to change.
8
Looking Forward - Development Opportunities
As noted above, development along the Route 60 Corridor continues with residential, office and mixed use
projects in the planning stages.
In other parts of the City, opportunities for development on remaining vacant parcels and redevelopment of
some strategically located parcels are under discussion. One of these strategic parcels is the former site of the City’s
Municipal Services Facility. This 10 acre parcel is located at the north end of the Central Business District and is
located within walking distance to shops, restaurants, the train station and the high school. This parcel presents a one
of a kind opportunity for redevelopment in the heart of Lake Forest. In preparation for seeking proposals from
developers for this property, the City Council is completing a planning process for the site which will result in the
release of Development Parameters for the property in fall, 2013. An environmental assessment of the site and
preliminary cleanup has been completed. The site provides the opportunity for various residential products as well as
mixed use opportunities. The City Council is committed to finding the right developer or developers for the site to
assure that the end product is one of high quality and one that supports and enhances the viability of the City’s Central
Business District and adds to the community’s distinctive character.
Municipal and Other Governmental Services
The City was granted incorporation by Special Charter (special act) of the General Assembly of the State of
Illinois in 1861. In 1869, the special act was repealed in its entirety by another special act. The 1869 Charter was a
more extensive grant than the 1861 act as indicated by the enumeration of the City Council's powers in 43 clauses.
One of the features of the Special Charter is that it was designed to provide needed municipal services while at the same
time centralizing the leadership and control over them. An example of this centralization is that while the
appropriations and tax levies of Elementary School District No. 67 are initiated by the School Board, they must be
incorporated in the tax levy ordinance adopted by the City Council. Another example is the Library Board, which
operates the City Library. The board is appointed by the City Council, rather than being a separately elected municipal
corporation. It is believed that the City is the only municipality in the State of Illinois that has maintained its original
Special Charter powers with all others having chosen instead, over the years, to be subject solely to the statutory
powers given to all Illinois municipalities.
The governing and legislative body of the City is the Council composed of a Mayor (elected bi-annually on an
at-large basis) and two aldermen from each of four wards (one alderman from each ward is elected annually). Pursuant
to an ordinance adopted in 1956, the City Manager is responsible for the day-to-day operations of the City and its 255
full-time employees (including Library employees). The employees in a collective bargaining unit include 30 police
officers, 58 public works/parks employees and 27 fire fighters. The City's Police and Fire departments include 40
uniformed police and 33 uniformed fire personnel. The excellence of the Fire Department is highlighted by the City's
Class 4 fire insurance rating which exceeds that of over 95% of the fire departments/districts in the State of Illinois.
Some of the municipal services provided for and funded out of the tax rate include: the public library (approximately
16,200 registered borrowers); twice weekly backdoor refuse pick-up; paramedic service (since 1974); and the parks and
recreation system including the 145 acre 18 hole golf course, 14 parks with a total acreage of 469 acres and 6
recreation facilities including a 1/4 mile public swimming beach and sailing center, Stirling Hall arts center, Wildlife
Discovery Center, Everett fieldhouse and the Community Recreation Center. The most recent addition to the
Community Recreation Center included the addition of 10,000 square feet to expand the City’s facilities for CROYA,
the City’s youth program. The expansion of the CROYA facilities was primarily funded through private donations. As
part of this project, the program area for the City’s preschool program was upgraded and parking and traffic circulation
were improved at the Recreation Center.
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City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
9
The City draws water for its plant from Lake Michigan. Proceeds of the Series 2001A Bonds were used to pay
the cost of engineering studies for improvements to the water system. The proceeds of the $26,000,000 Series 2002A
Bonds were used for water and sewer system improvements, including water treatment plant improvements, a 36-inch
transmission main and certain sanitary sewers. The Series 2003C Bonds were used for various water and sanitary
sewer system improvements. The Water Plant Improvement Project included the installation of a state of the art
membrane filtration system (the first water plant to have such technology in Illinois), the replacement of both high lift
and low lift pumps, the installation of electrical switch gear, and a new back-up power supply. Water began pumping
from the new plant at the end of April, 2004. The back-up power supply and HVAC improvements were completed by
October, 2004.
The City's Comprehensive Annual Financial Report has been awarded the Certificate of Achievement for
Excellence in Financial Reporting by the Governmental Finance Officers' Association (GFOA) of the United States and
Canada, for the City's 1979-2012 reports. The significance of the GFOA's award is emphasized by their statement:
"The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial
reporting and its attainment represents a significant accomplishment by a governmental unit and its management.” The
City annually prepares a "Comprehensive Fiscal Plan" which includes: Operating and Capital Budgets for the current
year; a Five Year Financial Analysis and Plan; and, a Five Year Projection for Personnel, Capital Investment and
Equipment costs. The City has an independent Audit Committee consisting of Council members and residents having
expertise in the area of financial administration and auditing that serves as an oversight body on behalf of the City
Council. The City has been self-insured since 1981 through participation with the Intergovernmental Risk Management
Agency (IRMA), which is a proprietary venture established to manage and fund claims for its 70 member municipalities
and special districts.
The City's growth has been guided by far-sighted municipal planning. Formal zoning procedures were
implemented in 1923 when the City's first zoning ordinance was adopted. In 1926, an ordinance was adopted
establishing the Plan Commission. Comprehensive Plans to assist in long-range development were adopted in 1929,
1955 and 1978. The City’s Comprehensive Plan was completely updated in 1998 and officially adopted by the City
Council at that time. Demonstrating the City’s commitment to careful, long term planning, the Comprehensive Plan
was amended in 2001 and 2008 to respond to changing trends and needs in the community. In 1956, an ordinance was
adopted regulating the architectural design of buildings within the City and establishing the Building Review Board.
This ordinance has set Lake Forest apart from other suburban communities by providing the tools necessary to preserve
the unique character of the City’s neighborhoods and ensure that changes happen in a manner that protects the historic
heritage of the community as well as the values of individual properties. On a contractual basis, the City provides
building inspection and plan review for the Villages of Lake Bluff and Bannockburn. The City completed a
Comprehensive Master Park Plan in October, 1995 which assessed existing park and recreational facilities, determined
current needs, projected future needs, suggested the most effective utilization of existing facilities, and identified and
prioritized needed improvements and enhancements to the parks. The Plan encompassed all City-owned properties and
included cost estimates and fiscally responsible phasing recommendations for accomplishing required improvements.
Schools/Hospitals
Lake Forest School District No. 67, which serves nearly the City’s entire tax base, had an enrollment in the
2012-2013 school year of 2,023 students. The District operates three K-4 schools and one middle school for grades 5-
8.
The Lake Forest Community High School District No. 115 serves Lake Forest, Lake Bluff, and surrounding
unincorporated areas including Knollwood. The Lake Forest High School District has an enrollment of approximately
1,700.
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City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
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The City’s diverse and strong educational institutions continue to grow, upgrade and adapt in response to
education trends. Lake Forest College (enrollment 1,525), a private liberal arts college established even before the City
itself, just completed a new residence hall which welcomes students for the first time in fall, 2013. This residence hall
replaces one of the original residence halls providing the types of living spaces and amenities desired by today’s college
student. This new residence hall joins the recently completed student sports center on south campus demonstrating the
commitment of the college to remain current and actively competitive with similarly sized colleges throughout the
Country. Concurrent with this project upgrading of water mains occurred throughout the campus improving life safety
protections to the various buildings on campus.
Two of the City’s private high schools are actively upgrading their campuses. Lake Forest Academy recently
completed a new student sports center and a girls’ dormitory. At the time of this writing, the finishing touches are
being put on the new Science Center on the campus. Woodlands Academy, a Catholic girls’ school, recently received a
gift of the adjacent 22 acre property, the former Barat Campus. This additional property, in the short term, will be
used to add competition level athletic fields to the campus. The library on the former Barat Campus, built about 15
years ago, will add student and faculty space to the campus. This parcel gives Woodlands space to grow and reinvent
itself in the future.
Northwestern Lake Forest Hospital is set to break ground within the next year on a replacement hospital. Road
improvements to support this new development are already underway. The City and Hospital teams have worked
closely together over the past two years developing plans, studying traffic patterns, addressing stormwater runoff and
gaining the necessary approvals from local and State agencies in support of this project. Approvals are in place
authorizing the construction of a new hospital and associated medical office buildings of up to 500 square feet. The
park-like health and wellness campus will be a regional medical center but for Lake Forest residents will continue to
benefit from state of the art medical care right in our own community.
The hospital is part of Lake Forest’s history and although the planned replacement, with an opening date
scheduled in summer 2017, will raise the standard of care and the quality of the existing facility significantly, the
hospital today remains a cornerstone of the community. The campus today includes the Hospital Health & Fitness
Center, Dearhaven Child Care and Learning Center, Westmoreland Nursing Center and the Women’s Auxiliary of
Lake Forest Hospital. The Emergency department provides adult and pediatric emergency care, urgent care and a 24-
hour Level II trauma center. The hospital also provides community education programs covering prevention and
wellness, seminars related to specific diseases and treatments, support groups and a comprehensive selection of
perinatal and parenting classes.
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City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
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SOCIOECONOMIC INFORMATION
The following statistics pertain principally to the City. Additional comparisons are made with Lake County (the
“County”) and the State of Illinois (the “State”).
Employment
Following are lists of large employers located in the City and in the surrounding area.
Major City Employers(1)
Approximate
Name Product/Service Employment
Northwestern Lake Forest Hospital ................... General Medical and Surgical Hospital .............................. 1,600
Hospira, Inc. ....................................... Corporate Headquarters and Surgical and Medical Instruments ......... 1,350
Trustmark Mutual Holding Co. ........................ Health and Life Insurance Benefits and Administration ............... 800
Solo Cup Co. ........................................ Corporate Headquarters; plastic cups and containers ................. 600
Lake Forest College ................................. Higher Education ................................................... 500(2)
Pactiv LLC .......................................... Corporate Headquarters and Specialty Packaging Products ............. 300
Lake Forest Community High School District No. 115 ... Secondary Education ................................................ 350(3)
City of Lake Forest ................................. Municipal Government ............................................... 275
Brunswick Corp. ..................................... Corporate Headquarters and Sporting and Athletic Goods .............. 200
Packaging Corp. of America ......................... Corporate Headquarters and Containerboard and Corrugated Packaging .. 200
Notes: (1) Source: 2013 Illinois Manufacturers Directory, 2013 Illinois Services Directory and a selective telephone survey.
(2) Excludes student employees.
(3) Excludes coaches, community education employees and student employees.
Major Area Employers(1)
Approximate
Location Name Description Employment
Northbrook ...... Allstate Insurance ........................ Insurance corporate office .................................... 8,750
Lincolnshire .... Aon Hewitt ................................ Employee Benefits and Compensation Consultants ................ 5,000
North Chicago ... Abbott Laboratories........................ Pharmaceutical Products ....................................... 3,400
Multiple ........ Baxter International, Inc. ................. Wholesale medical supplies .................................... 2,700(2)
Deerfield ....... Takeda Pharmaceuticals North America, Inc. . Corporate headquarters and pharmaceutical preparations ........ 2,668
Deerfield ....... Kinetek, Inc. ............................. Corporate headquarters and commercial printing ............... 2,500
Deerfield ....... Walgreen Co. .............................. Drug store corporate office ................................... 2,500
Libertyville .... Advocate Condell Medical Center ............ Medical Center ............................................... 2,200
Northbrook ...... Underwriters Laboratories .................. Independent non-profit testing ................................ 1,600
Unincorporated
Lake Forest .... W.W. Grainger ............................. Corporate Headquarters; Industrial
and Commercial Equipment and Supplies ........................ 1,200
Northbrook ...... CVS Caremark .............................. Integrated health care services ............................... 1,000
Vernon Hills .... Zebra Technologies Corp. ................... Label Printers and Encoders ................................... 900
Deerfield ....... Astellas Pharma US, Inc. ................... Corporate Headquarters and Wholesale Pharmaceutical Products .. 800
Deerfield ....... United Stationers ......................... Corporate headquarters and wholesale office furniture ......... 800
Notes: (1) Source: The County, the 2011 Illinois Services Directory, the 2011 Illinois Manufacturers Directory and a
selective telephone survey.
(2) Includes 1,900 in Round Lake and 800 in Deerfield.
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$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
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The following tables show employment by industry and by occupation for the City, Lake County and the State
of Illinois as reported by the U.S. Census Bureau 2007-2011 American Community Survey 5-year estimated values.
Employment By Industry(1)
The City Lake County State of Illinois
Classification Number Percent Number Percent Number Percent
Agriculture, Forestry, Fishing and Hunting, and Mining ....... 32 0.4% 1,140 0.3% 63,960 1.1%
Construction ................................................ 200 2.6% 18,457 5.5% 343,232 5.7%
Manufacturing ............................................... 898 11.7% 55,228 16.4% 775,663 12.8%
Wholesale Trade ............................................. 352 4.6% 15,613 4.6% 196,738 3.3%
Retail Trade ................................................ 583 7.6% 39,662 11.8% 659,708 10.9%
Transportation and Warehousing, and Utilities ............... 193 2.5% 12,496 3.7% 355,486 5.9%
Information ................................................. 120 1.6% 6,710 2.0% 135,688 2.2%
Finance and Insurance, and Real Estate
and Rental and Leasing ..................................... 1,613 21.0% 27,421 8.2% 466,468 7.7%
Professional, Scientific, and Management, Administrative,
and Waste Management Services .............................. 1,299 16.9% 44,143 13.1% 662,987 11.0%
Educational Services and Health Care and Social Assistance ... 1,572 20.5% 61,790 18.4% 1,337,455 22.1%
Arts, Entertainment and Recreation and Accommodation
and Food Services .......................................... 423 5.5% 27,984 8.3% 524,925 8.7%
Other Services, Except Public Administration ................ 325 4.2% 15,031 4.5% 288,538 4.8%
Public Administration ....................................... 60 0.8% 10,303 3.1% 232,923 3.9%
Total ..................................................... 7,670 100.0% 335,978 100.0% 6,043,771 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2007 to 2011.
Employment By Occupation(1)
The City Lake County State of Illinois
Classification Number Percent Number Percent Number Percent
Management, Business, Science, and Art ...................... 4,491 58.6% 139,543 41.5% 2,167,571 35.9%
Service ..................................................... 618 8.1% 46,867 13.9% 1,007,434 16.7%
Sales and Office ............................................ 2,084 27.2% 88,623 26.4% 1,550,202 25.6%
Natural Resources, Construction, and Maintenance............. 188 2.5% 22,873 6.8% 474,566 7.9%
Production, Transportation, and Material Moving ............. 289 3.8% 38,072 11.3% 843,998 14.0%
Total ..................................................... 7,670 100.0% 335,978 100.0% 6,043,771 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2007 to 2011.
Unemployment rates for the City are well below the County and the State levels, as shown below.
Annual Average Unemployment Rates(1)
Calendar The The The
Year City County State
2004 ............................ 3.0% 5.5% 6.2%
2005 ............................ 2.6% 4.7% 5.7%
2006 ............................ 2.3% 4.2% 4.5%
2007 ............................ 2.8% 5.0% 5.1%
2008 ............................ 3.9% 6.7% 6.5%
2009 ............................ 5.8% 9.8% 10.0%
2010 ............................ 6.2% 10.5% 10.3%
2011 ............................ 5.7% 9.4% 9.8%
2012 ............................ 5.3% 8.7% 8.9%
2013(2) ......................... N/A 8.1% 9.8%
Notes: (1) Source: Illinois Department of Employment Security and the
City.
(2) Preliminary for the month of June 2013.
77
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
13
Building Permits
City Building Permits(1)
Fiscal Building Permits Residential Commercial
Year Issued Construction Construction
2004 ................ 4,308 83 3
2005 ................ 4,740 128 5
2006 ................ 4,055 44 1
2007 ................ 3,501 22 3
2008 ................ 3,491 33 1
2009 ................ 3,142 23 3
2010 ................ 2,610 4 1
2011 ................ 3,072 8 2
2012 ................ 3,451 11 1
2013 ................ 3,197 7 2
Note: (1) Source: the City.
The U.S. Census Bureau 5-year estimated values reported that the median value of the City’s owner-occupied
homes was $863,900. This compares to $280,900 for Lake County and $198,500 for the State of Illinois. The
following table represents the five year average market value of specified owner-occupied units for the City, Lake
County and the State of Illinois at the time of the 2007-2011 American Community Survey.
Specified Owner-Occupied Units(1)
The City Lake County State of Illinois
Value Number Percent Number Percent Number Percent
Under $50,000 ..................... 46 0.8% 4,576 2.5% 218,208 6.7%
$50,000 to $99,999 ................ 57 0.9% 5,491 2.9% 451,967 13.8%
$100,000 to $149,999 .............. 53 0.9% 17,026 9.1% 464,158 14.2%
$150,000 to $199,999 .............. 137 2.3% 30,373 16.3% 518,957 15.8%
$200,000 to $299,999 .............. 147 2.4% 42,526 22.8% 725,004 22.1%
$300,000 to $499,999 .............. 601 9.9% 45,688 24.5% 613,486 18.7%
$500,000 to $999,999 .............. 2,719 44.8% 31,953 17.2% 234,600 7.2%
$1,000,000 or more ................ 2,310 38.1% 8,604 4.6% 53,191 1.6%
Total ........................... 6,070 100.0% 186,237 100.0% 3,279,571 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2007 to 2011.
Mortgage Status(1)
The City Lake County State of Illinois
Number Percent Number Percent Number Percent
Housing Units with a Mortgage ..... 3,874 63.8% 144,394 77.5% 2,272,745 69.3%
Housing Units Without a Mortgage .. 2,196 36.2% 41,843 22.5% 1,006,826 30.7%
Total ........................... 6,070 100.0% 186,237 100.0% 3,279,571 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2007 to 2011.
Income
Per Capita Personal Income
for the Ten Highest Income Counties in the State(1)
Rank 2007-2011
1 .................... Lake County ................. $38,512
2 .................... DuPage County ............... 38,405
3 .................... McHenry County .............. 32,318
4 .................... Monroe County ............... 31,570
5 .................... Kendall County .............. 31,325
6 .................... Will County ................. 30,199
7 .................... Cook County ................. 29,920
8 .................... Woodford County ............. 29,886
9 .................... Kane County ................. 29,864
10 .................... Sangamon County ............. 29,167
Note: (1) Source: U.S. Bureau of the Census. 2007-2011
American Community 5-Year Estimates.
78
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
14
The following shows the median family income for counties in the Chicago metropolitan area.
Ranking of Median Family Income(1)
Ill. Family Ill.
County Income Rank
DuPage County .............$94,049 1
Lake County ............... 93,260 2
Kendall County ............ 90,696 3
McHenry County ............ 87,133 4
Will County ............... 86,372 5
Kane County ............... 79,686 7
Cook County ............... 65,842 20
Note: (1) Source: U. S. Bureau of the Census,
American Community Survey, 2007-2011
estimates.
The U.S. Census Bureau 5-year estimated values reported that the City had a median family income of
$168,611. This compares to $93,260 for Lake County and $69,658 for the State of Illinois. The following table
represents the distribution of family incomes for the City, Lake County and the State of Illinois at the time of the 2007-
2011 American Community Survey.
Family Income(1)
The City Lake County State of Illinois
Value Number Percent Number Percent Number Percent
Under $10,000 ..................... 52 1.0% 4,168 2.3% 131,841 4.2%
$10,000 to $14,999 ................ 55 1.1% 2,562 1.4% 86,610 2.7%
$15,000 to $24,999 ................ 83 1.6% 8,191 4.6% 224,421 7.1%
$25,000 to $34,999 ................ 124 2.4% 9,858 5.5% 260,262 8.3%
$35,000 to $49,999 ................ 147 2.8% 16,941 9.5% 389,862 12.4%
$50,000 to $74,999 ................ 484 9.3% 27,997 15.7% 606,737 19.2%
$75,000 to $99,999 ................ 414 8.0% 26,260 14.7% 486,151 15.4%
$100,000 to $149,999 .............. 1,015 19.6% 37,674 21.1% 547,784 17.4%
$150,000 to $199,999 .............. 479 9.2% 19,776 11.1% 212,016 6.7%
$200,000 or more .................. 2,331 45.0% 25,205 14.1% 207,841 6.6%
Total ........................... 5,184 100.0% 178,632 100.0% 3,153,525 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2007 to 2011.
The U.S. Census Bureau 5-year estimated values reported that the City had a median household income of
$133,264. This compares to $79,666 for Lake County and $56,576 for the State of Illinois. The following table
represents the distribution of household incomes for the City, Lake County and the State of Illinois at the time of the
2007-2011 American Community Survey.
Household Income(1)
The City Lake County State of Illinois
Value Number Percent Number Percent Number Percent
Under $10,000 ..................... 190 2.8% 9,017 3.8% 324,506 6.8%
$10,000 to $14,999 ................ 146 2.2% 6,320 2.6% 225,927 4.7%
$15,000 to $24,999 ................ 215 3.2% 15,999 6.7% 480,204 10.1%
$25,000 to $34,999 ................ 271 4.0% 16,558 6.9% 462,115 9.7%
$35,000 to $49,999 ................ 305 4.5% 26,067 10.9% 628,998 13.2%
$50,000 to $74,999 ................ 751 11.2% 39,554 16.5% 884,623 18.5%
$75,000 to $99,999 ................ 581 8.7% 33,556 14.0% 627,813 13.2%
$100,000 to $149,999 .............. 1,165 17.4% 43,393 18.1% 656,199 13.7%
$150,000 to $199,999 .............. 586 8.7% 21,960 9.2% 243,765 5.1%
$200,000 or more .................. 2,502 37.3% 27,523 11.5% 238,852 5.0%
Total ........................... 6,712 100.0% 239,947 100.0% 4,773,002 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2007 to 2011.
79
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
15
Retail Activity
The table below shows certain sales tax receipts collected by the City as an indicator of commercial activity.
Retailers’ Occupation, Service Occupation and Use Tax(1)
State Fiscal Year State Sales Tax Annual
Ending June 30 Distribution(2) Change + (-)
2004 ........................ $2,071,156 5.77%(3)
2005 ........................ 2,146,549 3.64%
2006 ........................ 2,252,966 4.96%
2007 ........................ 2,783,698(4) 23.56%
2008 ........................ 3,050,438(4) 9.58%
2009 ........................ 2,971,996(4) (2.57%)
2010 ........................ 2,519,529(4) (15.22%)
2011 ........................ 2,414,327(4) (4.18%)
2012 ........................ 2,406,211(4) (0.34%)
2013 ........................ 2,596,446(4) 7.91%
Growth from 2004 to 2013 ....................................... 25.36%
Notes: (1) Source: Illinois Department of Revenue.
(2) Tax distributions are based on records of the Illinois Department
of Revenue relating to the 1% municipal portion of the Retailers’
Occupation, Service Occupation and Use Tax, collected on behalf of
the City, less a State administration fee. The municipal 1%
includes tax receipts from the sale of food and drugs which are
not taxed by the State.
(3) The 2004 percentage is based on 2003 sales tax receipts of
$1,958,166.
(4) Includes Home Rule Sales Taxes.
PLAN OF FINANCING
The proceeds of the Bonds will be used: (i) to currently refund the City’s outstanding General Obligation
Bonds, Series 2010A, as listed below (the “Refunded Bonds”), and (ii) to pay the costs of issuance of the Bonds.
Refunded Bonds
General Obligation Bonds, Series 2010A
Outstanding Amount Redemption Redemption
Maturities Amount Refunded Price Date
12/15/2015 .......... $9,665,000 $9,665,000 100.00% 12/15/2013
Bond proceeds will be used to purchase direct full faith and credit obligations of the United States of America
(the “Government Securities”), the principal of which together with interest to be earned thereon will be sufficient (i) to
pay when due the interest on the Refunded Bonds as stated above, and (ii) to pay principal of the Refunded Bonds on
their redemption date.
The Government Securities will be held in an escrow account created pursuant to an escrow agreement (the
“Escrow Agreement”) between the City and Wells Fargo Bank, N.A., Chicago, Illinois, as Escrow Agent (the
“Escrow Agent”). All moneys and Government Securities deposited for the payment of Refunded Bonds, including
interest thereon, are required to be applied solely and irrevocably to the payment of the Refunded Bonds.
80
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
16
DEBT INFORMATION
After issuance of the Bonds and the refunding of the Refunded Bonds, the City will have outstanding $56,295,000 (subject to change) principal amount
of general obligation bonded debt. In addition, the City has $2,143,146 aggregate principal amount of special service area bonds. The City does not intend to
issue additional debt in 2013.
Outstanding Bonded Debt(1)
(Principal Only)
Fiscal Less: Total
Year Ending Series Series Series Series Series Series Series Refunded The Bonded Cumulative Retirement(2)
April 30 2008 2009 2010A 2010B 2010C 2011A 2011B Bonds Bonds(2) Debt(2) Amount Percent
2014 ..... $ 535,000 $ 165,000 $ 0 $ 0 $ 0 $ 480,000 $ 1,870,000 $ 0 $ 0 $ 3,050,000 $ 3,050,000 5.42%
2015 ..... 550,000 170,000 0 0 0 480,000 1,920,000 0 65,000 3,185,000 6,235,000 11.08%
2016 ..... 565,000 170,000 9,665,000 0 300,000 325,000 1,955,000 (9,665,000) 100,000 3,415,000 9,650,000 17.14%
2017 ..... 580,000 175,000 0 0 195,000 120,000 2,215,000 0 0 3,285,000 12,935,000 22.98%
2018 ..... 600,000 180,000 0 0 210,000 125,000 2,270,000 0 100,000 3,485,000 16,420,000 29.17%
2019 ..... 615,000 185,000 0 0 225,000 130,000 2,300,000 0 200,000 3,655,000 20,075,000 35.66%
2020 ..... 635,000 190,000 0 0 215,000 130,000 2,400,000 0 350,000 3,920,000 23,995,000 42.62%
2021 ..... 465,000 200,000 0 0 405,000 140,000 2,470,000 0 430,000 4,110,000 28,105,000 49.92%
2022 ..... 485,000 205,000 0 0 415,000 0 2,530,000 0 435,000 4,070,000 32,175,000 57.15%
2023 ..... 500,000 215,000 0 0 425,000 0 2,605,000 0 440,000 4,185,000 36,360,000 64.59%
2024 ..... 520,000 225,000 0 0 435,000 0 1,870,000 0 450,000 3,500,000 39,860,000 70.81%
2025 ..... 540,000 235,000 0 0 445,000 0 0 0 460,000 1,680,000 41,540,000 73.79%
2026 ..... 560,000 245,000 0 0 460,000 0 0 0 475,000 1,740,000 43,280,000 76.88%
2027 ..... 580,000 255,000 0 0 475,000 0 0 0 480,000 1,790,000 45,070,000 80.06%
2028 ..... 605,000 265,000 0 0 490,000 0 0 0 495,000 1,855,000 46,925,000 83.36%
2029 ..... 0 280,000 0 0 490,000 0 0 0 930,000 1,700,000 48,625,000 86.38%
2030 ..... 0 0 0 540,000 240,000 0 0 0 960,000 1,740,000 50,365,000 89.47%
2031 ..... 0 0 0 780,000 0 0 0 0 1,085,000 1,865,000 52,230,000 92.78%
2032 ..... 0 0 0 820,000 0 0 0 0 1,120,000 1,940,000 54,170,000 96.23%
2033 ..... 0 0 0 860,000 0 0 0 0 1,265,000 2,125,000 56,295,000 100.00%
Total... $8,335,000 $3,360,000 $9,665,000 $3,000,000 $5,425,000 $1,930,000 $24,405,000 $(9,665,000) $9,840,000 $56,295,000
Notes: (1) Source: the City.
(2) Subject to change.
81
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
17
Detailed Overlapping Bonded Debt(1)
(As of April 30, 2013)
Outstanding Applicable to City
Debt Percent(2) Amount
Schools:
School District No. 67 ................................................ $ 1,087,468 99.94% $ 1,086,816
School District No. 103 ............................................... 2,840,000 0.01% 284
High School District No. 115 .......................................... 46,545,000 79.43% 36,970,694
High School District No. 128 .......................................... 21,995,000 3.00% 659,850
Community College District No. 532 .................................... 20,535,000 10.24% 2,102,784
Total Schools ................................................................................................... $40,820,427
Others:
Lake County ........................................................... $ 82,955,000 9.72% $ 8,063,226
Lake County Forest Preserve District .................................. 305,415,000 9.72% 29,686,338
Total Others .................................................................................................... $37,749,564
Total Overlapping Debt .......................................................................................... $78,569,991
Notes: (1) Source: Lake County Clerk.
(2) Overlapping percentages are based on 2012 EAVs, the most current available.
Statement of Bonded Indebtedness(1)(2)
Ratio To Per Capita
Amount Equalized Estimated (2010 Census
Applicable Assessed Actual 19,375)
City EAV of Taxable Property, 2012 ........................... $2,378,047,139 100.00% 33.33% $122,737.92
Estimated Actual Value, 2012 ................................. $7,134,141,417 300.00% 100.00% $368,213.75
Total Direct Bonded Debt(3) .................................. $ 56,295,000 2.37% 0.79% $ 2,905.55
Overlapping Bonded Debt:
Schools ...................................................... $ 40,820,427 1.72% 0.57% $ 2,106.86
Others ....................................................... 37,749,564 1.59% 0.53% 1,948.36
Total Overlapping Bonded Debt .............................. $ 78,569,991 3.30% 1.10% $ 4,055.23
Total Direct and Overlapping Bonded Debt(3) ................. $ 134,864,991 5.67% 1.89% $ 6,960.77
Notes: (1) Source: Lake County Clerk.
(2) As of the date of issuance of the Bonds for Direct Bonded Debt and as of April 30, 2013 for Overlapping Bonded Debt.
(3) Subject to change.
PROPERTY ASSESSMENT AND TAX INFORMATION
For the 2012 levy year, the City’s EAV was comprised of approximately 91% residential, 9% commercial, and
less than 1% industrial, farm and railroad property valuations.
City Equalized Assessed Valuation(1)(2)
Levy Years
Property Class 2008 2009 2010 2011 2012
Residential ............... $2,674,566,048 $2,609,955,147 $2,452,291,451 $2,302,061,004 $2,166,702,992
Farm ...................... 5,025,397 4,934,090 4,679,567 4,142,688 2,485,744
Commercial ................ 217,608,832 214,117,162 203,193,623 203,074,638 207,360,589
Industrial ................ 79,283 71,603 66,933 70,382 65,556
Railroad .................. 792,412 953,855 1,191,938 1,266,392 1,432,258
Total ................... $2,898,071,972 $2,830,031,857 $2,661,423,512 $2,510,615,104 $2,378,047,139
Percent change +(-) ....... 3.21%(3) (2.35%) (5.96%) (5.67%) (5.28%)
Notes: (1) Source: Lake County Clerk.
(2) Excludes the incremental valuation in the City’s tax increment financing districts, if applicable.
(3) Percentage based on 2007 Equalized Assessed Valuation of $2,807,947,615.
82
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
18
Representative Tax Rates
Per $100 of Equalized Assessed Valuation(1)
Levy Years
2008 2009 2010 2011 2012
Bonds and Interest .................................. $0.086 $0.090 $0.096 $0.068 $0.071
Pensions (Police, Fire, IMRF) ....................... 0.119 0.138 0.153 0.165 0.182
Library Board ....................................... 0.114 0.118 0.130 0.141 0.157
Playgrounds and Recreation Board .................... 0.102 0.151 0.165 0.178 0.194
Corporate Fund ...................................... 0.449 0.405 0.446 0.483 0.544
Total Tax Rate .................................... $0.870 $0.902 $0.990 $1.035 $1.148
Lake County and Forest Preserve Dist. ............... 0.652 0.664 0.703 0.755 0.820
North Shore Sanitary Dist. .......................... 0.121 0.124 0.136 0.150 0.150
Lake Forest Elementary School District No. 67 ........ 0.965 0.998 1.095 1.186 1.322
Lake Forest High School No. 115 ..................... 1.001 1.069 1.101 1.191 1.322
Community College Dist. No. 532 ..................... 0.196 0.200 0.218 0.240 0.272
All Other ........................................... 0.069 0.068 0.062 0.069 0.065
Total(2) .......................................... $3.874 $4.025 $4.305 $4.626 $5.099
City as a Percent of Total .......................... 22.46% 22.41% 23.00% 22.37% 22.51%
Notes: (1) Source: Lake County Clerk.
(2) Representative tax rate is for Shields Township Tax Code 14, which represents 40% of the City's 2012 Equalized
Assessed Valuation.
City Tax Extensions and Collections(1)
Levy Coll. Taxes Total Collections
Year Year Extensions Amount Percent
2003 ............ 2004 ............. $20,269,822 $20,213,624 99.72%
2004 ............ 2005 ............. 21,219,092 21,197,444 99.90%
2005 ............ 2006 ............. 21,907,603 21,773,228 99.39%
2006 ............ 2007 ............. 22,999,873 22,979,703 99.91%
2007 ............ 2008 ............. 23,895,634 23,862,170 99.86%
2008 ............ 2009 ............. 25,213,226 25,174,923 99.85%
2009 ............ 2010 ............. 25,526,887 25,486,745 99.84%
2010 ............ 2011 ............. 26,348,093 26,312,509 99.86%
2011 ............ 2012 ............. 25,984,866 25,911,250 99.72%
2012 ............ 2013 ............. 27,299,981 ------In Collection------
Note: (1) Source: the City.
Major City Taxpayers(1)
Major Taxpayers Business/Service 2012 EAV(2)
Hospira Inc. ............................................... Corporate HQ and Surgical and Medical Instruments .......... $18,771,220
Lake Products Inc. ......................................... Real Property ............................................. 13,929,128
The Presbyterian Home ...................................... Retirement Facility........................................ 13,749,270
CBIZ Property Tax Solution ................................. Real Property ............................................. 11,196,536
Trustmark Insurance Co. .................................... Health and Life Insurance and Benefits Administration ...... 7,750,771
Lake Forest Landmark Company, LLC .......................... Office Building ........................................... 6,962,512
Northwestern Lake Forest Hospital .......................... General Medical and Surgical Hospital ...................... 6,918,325
Lake Forest Landmark II .................................... Real Property ............................................. 5,928,948
Shawgate Lake Forest, LLC .................................. Commercial Property........................................ 5,440,583
Chicago Bears Football Club, Inc. .......................... Professional Football Franchise ............................ 5,402,161
Total ............................................................................................................... $96,049,454
Ten Largest as a percent of 2012 EAV ($2,378,047,139) ................................................................ 4.04%
Notes: (1) Source: Lake County Clerk.
(2) Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers listed
contain multiple parcels and it is possible that some parcels and their valuations have been overlooked. The 20 12
EAV is the most current available.
83
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
19
Real Property Assessment, Tax Levy and Collection
Tax Levy and Collection Procedures. Local Assessment Officers determine the assessed valuation of taxable
real property and railroad property not held or used for railroad operations. The Illinois Department of Revenue (the
“Department”) assesses certain other types of taxable property, including railroad property held or used for railroad
operations. Local Assessment Officers’ valuation determinations are subject to review at the county level and then, in
general, to equalization by the Department. Such equalization is achieved by applying to each county’s assessments a
multiplier determined by the Department. The purpose of equalization is to provide a common basis of assessments
among counties by adjusting assessments toward the statutory standard of 33-1/3% of fair cash value. Farmland is
assessed according to a statutory formula which takes into account factors such as productivity and crop mix. Taxes are
extended against the assessed values after equalization.
Property tax levies of each taxing body are filed in the office of the county clerk of each county in which
territory of that taxing body is located. The county clerk computes the rates and amount of taxes applicable to taxable
property subject to the tax levies of each taxing body and determines the dollar amount of taxes attributable to each
respective parcel of taxable property. The county clerk then supplies to the appropriate collecting officials within the
county the information needed to bill the taxes attributable to the various parcels therein. After the taxes have been
collected, the collecting officials distribute to the various taxing bodies their respective shares of the taxes collected.
Taxes levied in one calendar year are due and payable in two installments during the next calendar year. Taxes that are
not paid when due, or that are not paid by mail and postmarked on or before the due date, are subject to a penalty of
1-1/2% per month until paid. Unpaid property taxes, together with penalties, interest, and costs, constitute a lien
against the property subject to the tax.
Exemptions. An annual General Homestead Exemption provides that the Equalized Assessed Valuation
(“EAV”) of certain property owned and used for residential purposes (“Residential Property”) may be reduced by the
amount of any increase over the 1977 EAV, up to a maximum reduction of $3,500 for assessment years prior to
assessment year 2004 in counties with less than 3,000,000 inhabitants, and a maximum reduction of $5,000 for
assessment year 2004 through 2007 in all counties. Additionally, the maximum reduction is $5,500 for assessment year
2008 and the maximum reduction is $6,000 for assessment year 2009 and thereafter in all counties.
The Homestead Improvement Exemption applies to Residential Properties that have been improved or rebuilt in
the 2 years following a catastrophic event. The exemption is limited to $45,000 through December 31, 2003, and
$75,000 per year beginning January 1, 2004 and thereafter, to the extent the assessed value is attributable solely to such
improvements or rebuilding.
Additional exemptions exist for senior citizens. The Senior Citizens Homestead Exemption (“Senior Citizens
Homestead Exemption”) operates annually to reduce the EAV on a senior citizen’s home for assessment years prior to
2004 by $2,000 in counties with less than 3,000,000 inhabitants. For assessment years 2004 and 2005, the maximum
reduction is $3,000 in all counties. For assessment years 2006 and 2007, the maximum reduction is $3,500 in all
counties. In addition, for assessment year 2008 and thereafter, the maximum reduction is $4,000 for all counties.
Furthermore, beginning with assessment year 2003, for taxes payable in 2004, property that is first occupied as a
residence after January 1 of any assessment year by a person who is eligible for the Senior Citizens Homestead
Exemption must be granted a pro rata exemption for the assessment year based on the number of days during the
assessment year that the property is occupied as a residence by a person eligible for the exemption.
84
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
20
A Senior Citizens Assessment Freeze Homestead Exemption (“Senior Citizens Assessment Freeze Homestead
Exemption”) freezes property tax assessments for homeowners, who are 65 and older and receive a household income
not in excess of the maximum income limitation. The maximum income limitation is $35,000 for years prior to 1999,
$40,000 for assessment years 1999 through 2003, $45,000 for assessment years 2004 and 2005, $50,000 from
assessment years 2006 and 2007 and for assessments year 2008 and after, the maximum income limitation is $55,000.
In general, the Exemption limits the annual real property tax bill of such property by granting to qualifying senior
citizens an exemption as to a portion of the valuation of their property. In counties with a population of 3,000,000 or
more, the exemption for all assessment years is equal to the EAV of the residence in the assessment year for which
application is made less the base amount. Furthermore, for those counties with less than 3,000,000, the exemption is
as follows: through assessment year 2005 and for assessment year 2007 and later, the exempt amount is the difference
between (i) the current EAV of their residence and (ii) the base amount, which is the EAV of a senior citizen’s
residence for the year prior to the year in which he or she first qualifies and applies for the Exemption (plus the EAV of
improvements since such year). For assessment year 2006, the amount of the exemption phases out as the amount of
household income increases. The amount of the exemption is calculated by using the same formula as above, and then
multiplying the resulting value by a ratio that varies according to household income.
Another exemption available to disabled veterans operates annually to exempt up to $70,000 of the Assessed
Valuation of property owned and used exclusively by such veterans or their spouses for residential purposes. Also,
certain property is exempt from taxation on the basis of ownership and/or use, such as public parks, not-for-profit
schools and public schools, churches, and not-for-profit hospitals and public hospitals. However, individuals claiming
exemption under the Disabled Persons’ Homestead Exemption (“Disabled Persons’ Homestead Exemption”) or the
Disabled Veterans Standard Homestead Exemption (“Disabled Veterans Standard Homestead Exemption”) cannot claim
the aforementioned exemption.
Furthermore, beginning with assessment year 2007, the Disabled Persons’ Homestead Exemption provides an
annual homestead exemption in the amount of $2,000 for property that is owned and occupied by certain persons with a
disability. However, individuals claiming exemption as a disabled veteran or claiming exemption under the Disabled
Veterans Standard Homestead Exemption cannot claim the aforementioned exemption.
In addition, the Disabled Veterans Standard Homestead Exemption provides disabled veterans an annual
homestead exemption starting with assessment year 2007 and thereafter. Specifically, (i) those veterans with a service-
connected disability of 75% are granted an exemption of $5,000 and (ii) those veterans with a service-connected
disability of less than 75%, but at least 50% are granted an exemption of $2,500. Furthermore, the veteran’s surviving
spouse is entitled to the benefit of the exemption, provided that the spouse has legal or beneficial title of the homestead,
resides permanently on the homestead and does not remarry. Moreover, if the property is sold by the surviving spouse,
then an exemption amount not to exceed the amount specified by the current property tax roll may be transferred to the
spouse’s new residence, provided that it is the spouse’s primary residence and the spouse does not remarry. However,
individuals claiming exemption as a disabled veteran or claiming exemption under the Disabled Persons’ Homestead
Exemption cannot claim the aforementioned exemption.
Beginning with assessment year 2007, the Returning Veterans’ Homestead Exemption (“Returning Veterans’
Homestead Exemption”) is available for property owned and occupied as the principal residence of a veteran in the
assessment year the veteran returns from an armed conflict while on active duty in the United States armed forces.
This provision grants a homestead exemption of $5,000, which is applicable in all counties. In order to apply for this
exemption, the individual must pay real estate taxes on the property, own the property or have either a legal or an
equitable interest in the property, “or a leasehold interest of land on which a single family residence is located, which is
occupied as a principle residence of a veteran returning from an armed conflict involving the armed forces of the
United States who has an ownership interest therein, legal, equitable or as a lessee, and on which the veteran is liable
for the payment of property taxes.” Those individuals eligible for this exemption may claim the exemption in addition
to other homestead exemptions, unless otherwise noted.
85
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
21
Property Tax Extension Limitation Law
The Property Tax Extension Limitation Law (the “Limitation Law”) limits the amount of the annual increase in
property taxes to be extended for certain Illinois non-home rule units of government. In general, the Limitation Law
restricts the amount of such increases to the lesser of 5% or the percentage increase in the Consumer Price Index during
the calendar year preceding the levy year. Currently, the Limitation Law applies only to and is a limitation upon all
non-home rule taxing bodies in Cook County, the five collar counties (DuPage, Kane, Lake, McHenry and Will) and
several downstate counties.
Home rule units, including the City, are exempt from the limitations contained in the Limitation Law.
Historically, the City has generally abided by the provisions of the Limitation Law, although it is not required to do so
under State of Illinois law. If the Limitation Law were to apply in the future to the City, the limitations set forth
therein will not apply to any taxes levied by the City to pay the principal of and interest on the Bonds.
Truth in Taxation Law
Legislation known as the Truth in Taxation Law (the “Law”) limits the aggregate amount of certain taxes which
can be levied by, and extended for, a taxing district to 105% of the amount of taxes extended in the preceding year
unless specified notice, hearing and certification requirements are met by the taxing body. The express purpose of the
Law is to require published disclosure of, and hearing upon, an intention to adopt a levy in excess of the specified
levels. The provisions of the Law do not apply to any levies made to pay principal of and interest on the Bonds.
FINANCIAL INFORMATION
Budgetary Information
The City Council follows these procedures in establishing the budgetary and appropriations data reflected in its
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 all 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. Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP).
86
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
22
Investment Policy
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
• 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.
87
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
23
Financial Reports
The City’s financial statements are audited annually by certified public accountants. The City’s financial
statements are completed on a modified accrual basis of accounting consistent with generally accepted accounting
principles applicable to governmental entities. See APPENDIX A for more detail.
No Consent or Updated Information Requested of the Auditor
The tables and excerpts (collectively, the “Excerpted Financial Information”) contained in this “FINANCIAL
INFORMATION” section and in APPENDIX A are from the audited financial statements of the City, including the
audited financial statements for the fiscal year ended April 30, 2012 (the “2012 Audit”). The 2012 Audit has been
prepared by McGladrey & Pullen, LLP, Certified Public Accountants, Schaumburg, Illinois (the “Auditor”), and
approved by formal action of the City Council. The City has not requested the Auditor to update information contained
in the Excerpted Financial Information; nor has the City requested that the Auditor consent to the use of the Excerpted
Financial Information in this Official Statement. The Auditor also has not performed any procedures relating to the
Official Statement. Other than as expressly set forth in this Official Statement, the financial information contained in
the Excerpted Financial Information has not been updated since the date of the 2012 Audit. The inclusion of the
Excerpted Financial Information in this Official Statement in and of itself is not intended to demonstrate the fiscal
condition of the City since the date of the 2012 Audit. Questions or inquiries relating to financial information of the
City since the date of the 2012 Audit should be directed to the City.
Summary Financial Information
The following tables are summaries and do not purport to be the complete audits, copies of which are available
upon request. For its fiscal year ended April 30, 2013, the City expects an increase of approximately $997,484 in its
General Fund fund balance. The City has passed a balanced budget for its fiscal year ending April 30, 2014. To date,
revenues and expenditures are generally within budgeted amounts. See APPENDIX A for excerpts of the City’s 2012
fiscal year audit.
88
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
24
Statement of Net Assets
Audited as of April 30
2008 2009 2010 2011 2012
ASSETS:
Cash and Cash Equivalents ....................... $ 42,970,481 $ 36,056,218 $ 30,011,393 $ 33,813,543 $ 33,692,501
Investments ..................................... 2,912,800 2,035,329 2,630,338 3,186,896 3,235,374
Receivables (net):
Property Taxes ................................. 22,736,457 24,055,668 24,404,445 25,078,551 24,736,822
Other Taxes .................................... 277,339 456,364 406,768 251,534 208,533
Accounts ....................................... 658,638 525,447 688,124 675,160 1,226,319
Accrued Interest ............................... 0 0 0 0 0
Loans .......................................... 438,138 351,860 12,452 2,005,507 2,029,272
Other .......................................... 207,773 182,259 326,235 360,171 233,435
Due from Other Governments ...................... 1,966,683 1,800,697 2,054,055 1,818,930 2,239,891
Internal Balances ............................... (398,676) (476,139) (633,341) (647,503) (688,361)
Inventories ..................................... 121,142 271,735 253,818 230,212 351,225
Prepaids ........................................ 733,222 899,206 852,586 637,120 640,619
Deferred Charges - Bond Issuance Costs .......... 84,590 78,951 73,312 211,260 193,426
Net Pension Asset ............................... 859,028 931,740 1,001,631 1,035,811 1,318,752
Capital Assets:
Not Being Depreciated .......................... 100,971,025 133,910,019 113,935,309 112,388,983 112,447,582
Being Depreciated, Net ......................... 89,786,099 95,158,752 117,642,223 120,047,178 116,872,079
Total Assets .................................. $264,324,739 $296,238,106 $293,659,348 $301,093,353 $298,737,469
LIABILITIES:
Accounts Payable ................................ $ 1,913,433 $ 5,366,250 $ 2,219,924 $ 1,937,760 $ 1,147,747
Accrued Liabilities ............................. 1,750,760 1,865,577 1,492,553 1,271,302 1,212,431
Other Liabilities ............................... 0 0 0 0 0
Accrued Interest Payable ........................ 246,885 518,988 432,558 768,357 529,727
Due to Other Funds .............................. 0 0 0 0 0
Due to Fiduciary Funds .......................... 0 0 0 0 0
Retainage Payable ............................... 217,889 1,029,220 457,942 165,786 75,544
Deposits ........................................ 1,496,721 1,154,637 874,117 901,648 843,290
Unearned Revenue - Property Taxes ............... 22,736,457 24,055,668 24,404,445 25,078,551 24,736,822
Unearned Revenue - Other ........................ 2,130,436 2,116,754 1,984,283 1,990,775 2,826,200
Long Term Obligations:
Due within One Year ............................ 2,894,682 2,952,662 15,759,313 2,447,876 1,477,734
Due in More than One Year ...................... 25,884,058 34,221,848 24,717,411 40,633,600 38,958,362
Total Liabilities ............................. $ 59,271,321 $ 73,281,604 $ 72,342,546 $ 75,195,655 $ 71,807,857
NET ASSETS:
Investment in Capital Assets,
Net of Related Debt ............................ $172,325,675 $193,768,992 $193,225,047 $192,568,460 $190,779,593
Restricted For:
Capital Projects .............................. 1,148,103 564,338 77,276 1,426,107 5,024,844
Debt Service .................................. 2,708,268 2,632,215 2,839,264 2,040,469 1,786,492
Other Purposes ................................ 122,484 123,421 84,975 179,117 0
Culture and Recreation ......................... 0 0 0 0 3,543,895
Highways and Streets ........................... 0 0 0 0 285,530
Public Safety .................................. 0 0 0 0 399,690
Cemetery Purposes .............................. 0 0 0 0 3,749,480
Affordable Housing ............................. 0 0 0 0 852,136
Parking ........................................ 0 0 0 0 957,420
Unrestricted .................................... 28,748,888 25,867,536 25,090,240 29,683,545 19,550,532
Total Net Assets .............................. $205,053,418 $222,956,502 $221,316,802 $225,897,698 $226,929,612
89
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
25
Statement of Activities
Governmental Activities
Net (Expense) Revenue and Charges in Net Assets
Audited Fiscal Year Ended April 30
2008 2009 2010 2011 2012
PRIMARY GOVERNMENT:
Governmental Activities(1):
General Government ............................. $ (2,972,297) $ (1,798,896) $ (8,711,052) $ (3,873,970) $ (7,118,227)
Highways and Streets ........................... (7,173,330) (5,587,853) (6,817,832) (6,561,914) (6,156,640)
Sanitation ..................................... (2,015,308) (1,976,454) (2,079,215) (2,178,886) (2,487,243)
Culture and Recreation ......................... (2,424,581) (4,753,843) (5,412,015) (5,352,285) (5,792,084)
Public Safety .................................. (10,776,530) (11,029,008) (11,575,811) (11,463,000) (11,888,284)
Public Improvements and Other .................. 0 0 0 0 0
Interest on Long-Term Debt ..................... (808,253) (978,029) (1,097,805) (1,424,317) (1,420,087)
Total Governmental Activities ................. $(26,170,299) $(26,124,083) $(35,693,730) $(30,854,372) $(34,862,565)
General Revenues:
Property Taxes ................................. $ 22,324,863 $ 23,067,216 $ 24,383,716 $ 24,739,956 $ 25,428,378
Replacement Taxes .............................. 115,223 138,004 114,477 141,240 124,086
Sales Tax ...................................... 3,118,339 3,010,457 2,392,497 2,554,772 2,577,304
Income Tax ..................................... 2,175,196 2,018,177 1,762,425 1,849,046 1,938,686
Utility Tax .................................... 4,454,442 4,407,235 3,967,398 3,968,072 3,981,548
Real Estate Transfer Tax ....................... 1,984,052 962,840 878,925 1,279,935 1,215,407
Other Taxes .................................... 373,795 253,343 258,163 280,840 368,660
Gain on Sale of Capital Assets ................. 0 0 0 0 0
Investment Income .............................. 1,771,629 35,853 852,245 573,508 264,432
Other .......................................... 627,188 22,729 60,000 150,049 33,724
Transfers ....................................... (3,931) 10,111,313 (615,816) (102,150) (37,746)
Total ......................................... $ 36,940,796 $ 44,027,167 $ 34,054,030 $ 35,435,268 $ 35,894,479
Change in Net Assets ............................ $ 10,770,497 $ 17,903,084 $ (1,639,700) $ 4,580,896 $ 1,031,914
Net Assets - Beginning of Year .................. 194,282,921 205,053,418 222,956,502 221,316,802 225,897,698
Net Assets - End of Year ........................ $205,053,418 $222,956,502 $221,316,802 $225,897,698 $226,929,612
Note: (1) Expenses less Program Revenues of Charges for Services, Operating Grants, and Capital Grants.
General Fund
Balance Sheet
Audited as of April 30
2008 2009 2010 2011 2012
ASSETS:
Cash and Investments ............................ $11,247,740 $11,092,128 $10,554,698 $10,439,581 $11,986,385
Property Taxes Receivable ....................... 15,077,078 16,229,354 15,142,523 15,218,497 15,528,966
Other Receivables ............................... 1,336,816 1,308,227 1,048,895 2,850,874 2,645,029
Due from other Funds ............................ 17,914 0 968,480 485,562 0
All Other Assets ................................ 2,369,833 2,657,745 2,106,782 1,797,758 2,332,408
Total Assets .................................. $30,049,381 $31,287,454 $29,821,378 $30,792,272 $32,492,788
LIABILITIES AND FUND BALANCE:
Accounts Payable/Accrued Payroll ................ $ 658,109 $ 663,972 $ 709,991 $ 519,646 $ 474,997
Deferred Property Tax Revenues .................. 15,077,078 16,229,354 15,142,523 15,218,497 15,528,966
All Other Liabilities ........................... 3,687,562 3,557,307 3,082,576 2,826,110 2,770,812
Total Liabilities ............................. $19,422,749 $20,450,633 $18,935,090 $18,564,253 $18,774,775
Fund Balance:
Reserved ........................................ $ 1,041,187 $ 2,218,570 $ 1,071,068 $ 2,988,884 $ 0
Nonspecdable .................................... 0 0 0 0 2,159,403
Restricted ...................................... 0 0 0 0 957,420
Unreserved - Undesignated ...................... 9,585,445 8,618,251 9,815,220 9,239,135 10,601,190
Total Fund Balance ............................ $10,626,632 $10,836,821 $10,886,288 $12,228,019 $13,718,013
Total Liabilities and Fund Balance ............ $30,049,381 $31,287,454 $29,821,378 $30,792,272 $32,492,788
90
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
26
General Fund
Revenues and Expenditures(1)
Audited Fiscal Year Ended April 30
2008 2009 2010 2011 2012
REVENUES:
Taxes:
Property ....................................... $14,341,398 $15,295,625 $16,116,492 $14,865,362 $15,433,117
Other .......................................... 9,688,667 9,785,189 8,463,984 8,740,849 8,871,480
Intergovernmental Revenues ...................... 48,550 3,269 108,491 155,529 0
Grants and Contributions ........................ 0 0 0 0 21,715
Charges for Services ............................ 2,158,104 2,597,515 2,621,493 2,968,599 2,642,136
Licenses and Permits ............................ 2,345,931 2,117,774 2,135,888 2,246,336 2,475,739
Fines and Forfeitures ........................... 469,208 387,629 372,924 409,539 372,607
Investment Income ............................... 577,165 230,132 85,963 97,373 83,782
Other ........................................... 685,257 673,177 766,622 660,427 668,840
Total Revenues ................................ $30,314,280 $31,090,310 $30,671,857 $30,144,014 $30,569,416
EXPENDITURES:
Current:
General Government ............................. $9,260,158 $10,465,264 $ 9,809,117 $ 9,507,364 $ 9,130,298
Highways and Streets ........................... 2,332,972 2,567,220 2,402,436 2,449,911 2,139,656
Sanitation ..................................... 2,125,284 2,096,044 2,056,528 2,194,511 2,228,844
Culture and Recreation ......................... 1,276,044 1,361,839 1,514,409 0 0
Public Safety .................................. 11,856,670 12,547,425 12,708,152 12,985,873 13,378,659
Capital Outlay .................................. 86,751 51,267 255,717 57,690 31,190
Debt Service .................................... 103,080 99,275 117,071 5,032 0
Total Expenditures ............................ $27,040,959 $29,188,334 $28,863,430 $27,200,381 $26,908,647
Excess (Deficiency) of Revenues
Over Expenditures .............................. $ 3,273,321 $ 1,901,976 $ 1,808,427 $ 2,943,633 $ 3,660,769
Other Financing Sources (Uses):
Loan Proceeds ................................... $ 0 $ 0 $ 0 $ 0 $ 0
Sale of Capital Assets .......................... 950 0 0 0 0
Transfers In ................................... 233,948 1,013,925 0 0 0
Transfers Out .................................. (1,885,742) (2,705,712) (1,758,960) (1,601,902) (2,170,775)
Total Other Financing Sources and Uses, Net .... $(1,650,844) $(1,691,787) $(1,758,960) $(1,601,902) $(2,170,775)
Net Change in Fund Balance ...................... $ 1,622,477 $ 210,189 $ 49,467 $ 1,341,731 $ 1,489,994
Fund Balance - Beginning of Year ................ $ 9,004,155 $10,626,632 $10,836,821 $10,886,288 $12,228,019
Fund Balance - End of Year ...................... $10,626,632 $10,836,821 $10,886,288 $12,228,019 $13,718,013
Note: (1) This condensed financial information has been excerpted from the full Comprehensive Annual Financial Reports of
The City of Lake Forest. The full financial statements, together with the report of the City's independent
accountants, are available upon request. The General Corporate Fund is accounted for using the modified accrual
basis of accounting. Revenues are recognized when susceptible to accrual (both measurable and available),
Expenditures, other than interest on long-term debt, are recorded when the liability is incurred, if measurable.
Property taxes due within the current fiscal year and collected within the current fiscal year or within 60 days
of the end of the fiscal year are recorded as revenue. As a result, the current year tax levy, which has a payment
due date after the end of the current fiscal year, is not recorded as revenue but rather as a receivable with a
corresponding amount of deferred revenue.
EMPLOYEE RETIREMENT AND OTHER POSTEMPLOYMENT BENEFITS OBLIGATIONS
See APPENDIX D herein for a discussion of the City’s employee retirement and other postemployment
benefits obligations.
91
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
27
REGISTRATION, TRANSFER AND EXCHANGE
Registration
The registered owner of a Bond will be deemed and regarded as the absolute owner thereof for the purpose of
receiving payment of, or on account of, the principal of, premium, if any, or interest thereon and for all other purposes
whatsoever, and all such payments so made to such registered owner or upon his order shall be valid and effectual to
satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the City nor the
Bond Registrar will be affected by any notice to the contrary.
Transfers and Exchanges
The transfer of Bonds will be registrable only upon the registration books maintained by the City for that
purpose at the principal corporate trust office of the Bond Registrar, by the registered owner thereof or by his attorney
duly authorized in writing, upon surrender thereof together with an instrument of transfer satisfactory to the Bond
Registrar and duly executed by the registered owner or his duly authorized agent. Upon such surrender for registration
of transfer, the City will execute and the Bond Registrar will authenticate and deliver a new Bond or Bonds of any
authorized denominations, registered in the name of the transferee, and of the same series, aggregate principal amount,
maturity and interest rate as the surrendered Bond.
Bonds may be exchanged for an equal aggregate principal amount of Bonds of the same series, maturity and
interest rate and of any authorized denominations, upon surrender thereof as the principal corporate trust office of the
Bond Registrar with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered
owner or his duly authorized agent.
For every such exchange or registration of transfer of Bonds, the City or the Bond Registrar may make a
charge sufficient to reimburse it for any tax or other governmental charge required to be paid with respect to such
exchange or registration of transfer. No charge will be made in connection with such exchange or registration of
transfer to pay the cost of preparing each new Bond issued upon such exchange or registration of transfer.
TAX EXEMPTION
Summary of Bond Counsel Opinion
Katten Muchin Rosenman LLP, Bond Counsel, is of the opinion that under existing law, interest on the Bonds
is not includible in the gross income of the owners thereof for Federal income tax purposes. If there is continuing
compliance with the applicable requirements of the Internal Revenue Code of 1986 (the “Code”), Bond Counsel is of
the opinion that interest on the Bonds will continue to be excluded from the gross income of the owners thereof for
Federal income tax purposes. Bond Counsel is further of the opinion that the Bonds are not “private activity bonds”
within the meaning of Section 141(a) of the Code. Accordingly, interest on the Bonds is not an item of tax preference
for purposes of computing individual or corporate alternative minimum taxable income. However, interest on the Bonds
is includible in corporate earnings and profits and therefore must be taken into account when computing corporate
alternative minimum taxable income for tax purposes of the corporate alternative minimum tax. Interest on the Bonds
is not exempt from State of Illinois income taxes.
The Code contains certain requirements that must be satisfied from and after the date of issuance of the Bonds.
These requirements relate to the use and investment of the proceeds of the Bonds, the payment of certain amounts to the
United States, the security and source of payment of the Bonds and the use of property financed with the proceeds of
the Bonds. The City has covenanted in the Bond Ordinance to comply with these requirements.
92
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
28
Bonds Purchased at a Premium or a Discount
The difference (if any) between the initial price at which a substantial amount of each maturity of the Bonds is
sold to the public (the “Offering Price”) and the principal amount payable at maturity of such Bonds is given special
treatment for Federal income tax purposes. If the Offering Price is higher than the maturity value of a Bond, the
difference between the two is known as “bond premium”; if the Offering Price is lower than the maturity value of a
Bond, the difference between the two is known as “original issue discount”.
Bond premium and original issue discount are amortized over the term of a Bond on the basis of the owner’s
yield from the date of purchase to the date of maturity, compounded at the end of each accrual period of one year or
less with straight line interpolation between compounding dates, as provided more specifically in the Income Tax
Regulations. The amount of bond premium accruing during each period is treated as a reduction in the amount of tax-
exempt interest earned during such period and is subtracted from the owner’s tax basis in the Bond. The amount of
original issue discount accruing during each period is treated as interest that is excludable from the gross income of the
owner of such Bond for Federal income tax purposes, to the same extent and with the same limitations as current
interest, and is added to the owner’s tax basis in the Bond. A Bond’s adjusted tax basis is used to determine whether,
and to what extent, the owner realizes taxable gain or loss upon disposition of the Bond (whether by reason of sale,
acceleration, redemption prior to maturity or payment at maturity of the Bond).
Owners of Bonds should consult their own tax advisors with respect to the state and local tax consequences of
owning the Bonds. It is possible that under the applicable provisions governing the determination of state or local
income taxes, accrued interest on the Bonds may be deemed to be received in the year of accrual even though there will
not be a corresponding cash payment until a year later.
Exclusion From Gross Income Requirements
The Code sets forth certain requirements that must be satisfied on a continuing basis in order to preserve the
exclusion from gross income for Federal income tax purposes of interest on the Bonds. Among these requirements are
the following:
Limitations on Private Use. The Code includes limitations on the amount of Bonds proceeds that may be used
in the trade or business of, or used to make or finance loans to, persons other than governmental units.
Investment Restrictions. Except during certain “temporary periods,” proceeds of the Bonds and investment
earnings thereon (other than amounts held in a reasonably required reserve or replacement fund, if any, or as
part of “minor portion”) may generally not be invested in investments having a yield that is “materially higher”
(1/8 of one percent) than the yield on the Bonds.
Rebate of Arbitrage Profit. Unless the City qualifies for one of several exemptions, earnings from the
investment of the “gross proceeds” of the Bonds in excess of the earnings that would have been realized if such
investments had been made at a yield equal to the yield on the Bonds are required to be paid to the United
States at periodic intervals. For this purpose, the term “gross proceeds” includes the original proceeds of the
Bonds, amounts received as a result of investing such proceeds, and amounts to be used to pay debt service on
the Bonds.
Covenants to Comply. The City has covenanted in the Bond Ordinance to comply with the
requirements of the Code relating to the exclusion from gross income for Federal income tax purposes of
interest on the Bonds.
93
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
29
Risks of Non-Compliance
In the event that the City fails to comply with the requirements of the Code, interest on the Bonds may become
includible in the gross income of the owners thereof for Federal income tax purposes retroactive to the date of issue. In
such event, the Bond Ordinance requires neither acceleration of payment of principal of, or interest on, the Bonds nor
payment of any additional interest or penalties to the owners of the Bonds.
Federal Income Tax Consequences
Pursuant to Section 103 of the Code, interest on the Bonds is not includible in the gross income of the owners
thereof for Federal income tax purposes. However, the Code contains a number of other provisions relating to the
treatment of interest on the Bonds which may affect the taxation of certain types of owners, depending on their
particular tax situations. Some of the potentially applicable Federal income tax provisions are described in general
terms below. PROSPECTIVE PURCHASERS SHOULD CONSULT THEIR TAX ADVISORS CONCERNING THE
PARTICULAR FEDERAL INCOME TAX CONSEQUENCES OF THEIR OWNERSHIP OF THE BONDS.
QUALIFIED TAX-EXEMPT OBLIGATIONS
Section 265(b)(3)(B) of the Code provides that certain issues designated or deemed as “qualified tax-exempt
obligations” and purchased by financial institutions (either from the issuer or in a secondary market transaction) may be
disregarded in computing the proportional disallowance of interest expense provided in such Section. In the Bond
Ordinance, the City has designated the Bonds as “qualified tax-exempt obligations”. In addition, as required by Section
265 of the Code, the City has represented that the reasonably anticipated amount of “tax-exempt obligations” that are
required to be taken into account under Section 265 of the Code and will be issued by the City and all subordinate
entities of the City during 2013 does not exceed $10,000,000, and has covenanted that it will not designate and issue
more than $10,000,000 aggregate principal amount of “tax-exempt obligations” during 2013. For purposes of the
foregoing sentence, the term “tax-exempt obligations” includes "qualified 501(c)(3) bonds" (as defined in Section 145
of the Code) but does not include other “private activity bonds” (as defined in Section 141(a) of the Code).
CONTINUING DISCLOSURE
In the Bond Ordinance, the City has covenanted and agreed, for the benefit of the beneficial owners of the
Bonds, to provide certain financial information and operating data relating to the City within 210 days after the close of
the City’s fiscal year (the “Annual Report”); and, in a timely manner, to provide notices of the occurrence of certain
enumerated events. The Annual Report will be filed by the City with the Municipal Securities Rulemaking Board (the
“MSRB”) for disclosures on its Electronic Municipal Market Access (“EMMA”) system. The information to be
contained in the Annual Report will consist of the annual audited financial statement of the City, and updated
information with respect to the statements in the Official Statement contained under the captions “Retailers’
Occupation, Service Occupation and Use Tax”, “DEBT INFORMATION”, “PROPERTY ASSESSMENT AND
TAX INFORMATION” and “FINANCIAL INFORMATION”. Each annual audited financial statement will
conform to generally accepted accounting principles applicable to governmental units and will be prepared in
accordance with standards of the Governmental Accounting Standards Board. If the audited financial statement is not
available, then an unaudited financial statement will be included in the Annual Report and the audited financial
statement will be filed promptly after it becomes available. The City, in a timely manner not in excess of ten business
days after the occurrence of the event, shall provide notice to the MSRB for disclosure on EMMA of any failure of the
City to provide any such report within the 210 day period and of the occurrence of any of the following events with
respect to the Bonds.
94
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
30
1. Principal and interest payment delinquencies
2. Non-payment related defaults, if material
3. Unscheduled draws on debt service reserves reflecting financial difficulties
4. Unscheduled draws on credit enhancements reflecting financial difficulties
5. Substitution of credit or liquidity providers, or their failure to perform
6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations
of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or
determinations with respect to the tax status of the security, or other material events affecting the tax
status of the security
7. Modifications to the rights of security holders, if material
8. Debt calls, if material, and tender offers
9. Defeasances
10. Release, substitution or sale of property securing repayment of the securities, if material
11. Rating changes
12. Tender offers
13. Bankruptcy, insolvency, receivership or similar event of the City*
14. The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or
substantially all of the assets of the City, other than in the ordinary course of business, the entry into a
definitive agreement to undertake such an action or the termination of a definitive agreement relating to
any such actions, other than pursuant to its terms, if material
15. Appointment of a successor or additional trustee or the change of name of a trustee, if material.
The City has agreed to the foregoing undertakings in order to assist participating underwriters of the Bonds and
brokers, dealers and municipal securities dealers in complying with Securities and Exchange Commission Rule
15c2-12(b)(5) promulgated under the Securities Exchange Act of 1934. The City will provide the foregoing
information for so long as Rule 15c2-12(b)(5) is applicable to the Bonds and the City remains an “obligated person”
under the Rule with respect to the Bonds. No provision of the bond ordinance limits the remedies available to any
beneficial owner of the Bonds with respect to the enforcement of the continuing disclosure covenants of the City
described above. Failure to comply with the continuing disclosure covenants will not constitute an event of default
under the Bond Ordinance.
The City may amend the continuing disclosure undertakings contained in the Ordinance upon a change in
circumstances provided that (a) the undertakings, as amended, would have complied with the requirements of Rule
15(c)2-12(b)(5) at the time of this offering, after taking into account any amendments or interpretations of the Rule, as
well as any change in circumstances and (b) in the opinion of nationally recognized bond counsel selected by the City,
the amendment does not materially impair the interests of the beneficial owners of the Bonds.
∗ This event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the City in a
proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has
assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing
body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order
confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially
all of the assets or business of the City.
95
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
31
OPTIONAL REDEMPTION
The Bonds maturing on or after December 15, 2022, are callable in whole or in part on any date on or after
December 15, 2021, at a price of par and accrued interest. If less than all the Bonds are called, they shall be redeemed
in such principal amounts and from such maturities as determined by the City and within any maturity by lot.
NOTICE OF REDEMPTION
Notice of the redemption of bonds shall be mailed not less than 30 days nor more than 60 days prior to the date
fixed for such redemption to the registered owners of bonds to be redeemed at their last addresses appearing on said
registration books. The bonds or portions thereof specified in said notice shall become due and payable at the
applicable redemption price on the redemption date therein designated, and if, on the redemption date, moneys for
payment of the redemption price of all the bonds or portions thereof to be redeemed, together with interest to the
redemption date, shall be available for such payment on said date, and if notice of redemption shall have been mailed as
aforesaid (and notwithstanding any defect therein or the lack of actual receipt thereof by any registered owner) then
from and after the redemption date interest on such bonds or portions thereof shall cease to accrue and become payable.
LITIGATION
There is no litigation of any nature now pending or threatened restraining or enjoining the issuance, sale,
execution or delivery of the Bonds, or in any way contesting or affecting the validity of the Bonds or any proceedings
of the City taken with respect to the issuance or sale thereof.
LEGAL MATTERS
Legal matters incident to the authorization, issuance and sale of the Bonds are subject to the unqualified
approving opinion of Katten Muchin Rosenman LLP, Chicago, Illinois, Bond Counsel, whose approving opinion will
be delivered with the Bonds. Bond Counsel has reviewed the statements in this Official Statement appearing under the
heading “TAX EXEMPTION” and is of the opinion that the statements contained under such headings are accurate
statements or summaries of the matters set forth therein and fairly present the information purported to be shown.
Except for the foregoing, however, Bond Counsel has not independently verified the accuracy or completeness of
statements and information contained in the Official Statement and does not assume any responsibility of the accuracy
or completeness of such statements and information.
The opinion of Bond Counsel and the descriptions of the tax law contained in this Official Statement are based
on statutes, judicial decisions, regulations, rulings and other official interpretations of law in existence on the date the
Bonds are issued. There can be no assurance that such law or the interpretation thereof will not be changed or that new
provisions of law will not be enacted or promulgated at any time while the Bonds are outstanding in a manner that
would adversely affect the value or the tax treatment of ownership of the Bonds.
OFFICIAL STATEMENT AUTHORIZATION
This Official Statement has been authorized for distribution to prospective purchasers of the Bonds. All
statements, information, and statistics herein are believed to be correct but are not guaranteed by the consultants or by
the City, and all expressions of opinion, whether or not so stated, are intended only as such.
96
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
32
INVESTMENT RATING
The City has supplied certain information and material concerning the Bonds and the City to the rating service
shown on the cover page, including certain information and materials which may not have been included in this Official
Statement, as part of its application for an investment rating on the Bonds. A rating reflects only the views of the rating
agency assigning such rating and an explanation of the significance of such rating may be obtained from such rating
agency. Generally, such rating service bases its rating on such information and material, and also on such
investigations, studies and assumptions that it may undertake independently. There is no assurance that such rating will
continue for any given period of time or that it may not be lowered or withdrawn entirely by such rating service if, in
its judgment, circumstances so warrant. Any such downward change in or withdrawal of such rating may have an
adverse effect on the secondary market price of the Bonds. An explanation of the significance of the investment rating
may be obtained from the rating agency: Moody’s Investors Service, 7 World Trade Center at 250 Greenwich Street,
New York, New York 10007, telephone 212-553-1658. The City will provide appropriate periodic credit information
to the rating service to maintain a rating on the Bonds.
DEFEASANCE AND PAYMENT OF BONDS
If the City shall pay or cause to be paid to the registered owners of the bonds, the principal, premium, if any,
and interest due or to become due thereon, at the times and in the manner stipulated therein and in the Bond Ordinance,
then the pledge of taxes, securities and funds hereby pledged and the covenants, agreements and other obligations of the
City to the registered owners and the beneficial owners of the bonds shall be discharged and satisfied.
Any bonds or interest installments appertaining thereto, whether at or prior to the maturity or the redemption
date of such bonds, shall be deemed to have been paid if (1) in case any such bonds are to be redeemed prior to the
maturity thereof, there shall have been taken all action necessary to call such bonds for redemption and notice of such
redemption shall have been duly given or provision shall have been made for the giving of such notice, and (2) there
shall have been deposited in trust with a bank, trust company or national banking association acting as fiduciary for
such purpose either (i) moneys in an amount which shall be sufficient, or (ii) “Federal Obligations” as defined below,
the principal of and the interest on which when due will provide moneys which, together with any moneys on deposit
with such fiduciary at the same time for such purpose, shall be sufficient, to pay when due the principal of, redemption
premium, if any, and interest due and to become due on said bonds on and prior to the applicable redemption date or
maturity date thereof.
The term “Federal Obligations” means (i) non-callable, direct obligations of the United States of America, (ii)
non-callable and non-prepayable, direct obligations of any agency of the United States of America, which are
unconditionally guaranteed by the United States of America as to full and timely payment of principal and interest, (iii)
non-callable, non-prepayable coupons or interest installments from the securities described in clause (i) or clause (ii)
which are stripped pursuant to programs of the Department of the Treasury of the United States of America, or (iv)
coupons or interest installments stripped from bonds of the Resolution Funding Corporation.
UNDERWRITING
The Bonds were offered for sale by the City at a public, competitive sale on September 16, 2013. The best bid
submitted at the sale was submitted by ____________________ (the “Underwriter”). The City awarded the contract
for sale of the Bonds to the Underwriter at a price of $___________. The Underwriter has represented to the City that
the Bonds have been subsequently re-offered to the public initially at the yields or prices set forth in the addendum to
this Official Statement.
97
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
*Subject to change.
33
FINANCIAL ADVISOR
The City has engaged Speer Financial, Inc. as financial advisor (the “Financial Advisor”) in connection with
the issuance and sale of the Bonds. The Financial Advisor will not participate in the underwriting of the Bonds. The
financial information included in the Official Statement has been compiled by the Financial Advisor. Such information
does not purport to be a review, audit or certified forecast of future events and may not conform with accounting
principles applicable to compilations of financial information. The Financial Advisor is not obligated to undertake any
independent verification of or to assume any responsibility for the accuracy, completeness or fairness of the information
contained in this Official Statement, nor is the Financial Advisor obligated by the City’s continuing disclosure
undertaking.
CERTIFICATION
We have examined this Official Statement dated _______ __, 2013, for the $9,840,000* General Obligation
Refunding Bonds, Series 2013, believe it to be true and correct and will provide to the purchaser of the Bonds at the
time of delivery a certificate confirming to the purchaser that to the best of our knowledge and belief information in the
Official Statement was at the time of acceptance of the bid for the Bonds and, including any addenda thereto, was at the
time of delivery of the Bonds true and correct in all material respects and does not include any untrue statement of a
material fact, nor does it omit the statement of any material fact required to be stated therein, or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading.
/s/ DONALD P. SCHOENHEIDER /s/ ROBERT R. KIELY, JR.
Mayor City Manager
CITY OF LAKE FOREST CITY OF LAKE FOREST
Lake County, Illinois Lake County, Illinois
*Subject to change.
98
APPENDIX A
CITY OF LAKE FOREST
LAKE COUNTY, ILLINOIS
EXCERPTS OF FISCAL YEAR 2012 AUDITED FINANCIAL STATEMENTS
99
APPENDIX B
DESCRIBING BOOK-ENTRY-ONLY ISSUANCE
1. The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for
the Bonds (the “Securities”). The Securities will be issued as fully-registered securities registered in the name of Cede
& Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC.
One fully-registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal
amount of such issue, and will be deposited with DTC.
2. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the
New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of
the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code,
and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934.
DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and
municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct
Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and
other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges
between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates.
Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing
Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed
Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its
regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities
brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has Standard &
Poor’s rating: AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange
Commission. More information about DTC can be found at www.dtcc.com.
3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which
will receive a credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each
Security (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial
Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected
to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings,
from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of
ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect
Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their
ownership interests in Securities, except in the event that use of the book-entry system for the Securities is
discontinued.
4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are
registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an
authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede &
Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the
actual Beneficial Owners of the Securities; DTC’s records reflect only the identity of the Direct Participants to whose
accounts such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect
Participants will remain responsible for keeping account of their holdings on behalf of their customers.
B-1
100
5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants
to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of
significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to
the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding
the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative,
Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be
provided directly to them.
6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being
redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be
redeemed.
7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to
Securities unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual
procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy
assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Securities are credited
on the record date (identified in a listing attached to the Omnibus Proxy).
8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede &
Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit
Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the City or the
Paying Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by
Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with
securities held for the accounts of customers in bearer form or registered in “street name,” and will be the
responsibility of such Participant and not of DTC, the Paying Agent, or the City, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend
payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the
responsibility of the City or the Paying Agent, disbursement of such payments to Direct Participants will be the
responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct
and Indirect Participants.
9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its
Participant, to any Tender/Remarketing Agent, and shall effect delivery of such Securities by causing the Direct
Participant to transfer the Participant’s interest in the Securities, on DTC’s records, to any Tender/Remarketing Agent.
The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will
be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC’s records
and followed by a book-entry credit of tendered Securities to any Tender/Remarketing Agent’s DTC account.
10. DTC may discontinue providing its services as depository with respect to the Securities at any time by
giving reasonable notice to the City or the Paying Agent. Under such circumstances, in the event that a successor
depository is not obtained, Security certificates are required to be printed and delivered.
11. The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a
successor securities depository). In that event, Security certificates will be printed and delivered to DTC.
12. The information in this section concerning DTC and DTC’s book-entry system has been obtained from
sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof.
B-2
101
APPENDIX C
PROPOSED FORM OF OPINION OF BOND COUNSEL
102
APPENDIX D
CITY OF LAKE FOREST
LAKE COUNTY, ILLINOIS
EXCERPTS OF FISCAL YEAR 2012 AUDITED FINANCIAL STATEMENTS
RELATING TO THE CITY’S PENSION PLANS AND OTHER POSTEMPLOYMENT BENEFITS
103
OFFICIAL BID FORM
(Open Speer Auction)
City of Lake Forest September 16, 2013
220 East Deerpath Speer Financial, Inc.
Lake Forest, Illinois 60045
City Council Members:
For the $9,840,000* General Obligation Refunding Bonds, Series 2013, (the “Bonds”), of the City of Lake Forest, Lake County, Illinois (the “City”), as
described in the annexed Official Notice of Sale, which is expressly made a part of this bid, we will pay you $_______________________ (no less than
$9,761,280) for Bonds bearing interest as follows (each rate a multiple of 1/8 or 1/100 of 1%). The premium or discount is subject to adjustment allowing the
same gross spread per $1,000 bond as bid herein and assuming a delivery date of October 3, 2013.
MATURITIES* – DECEMBER 15
$ 65,000 ............ 2014 ______% $430,000.............. 2020 ______% $ 495,000 ......... 2027 ______%
100,000 ............ 2015 ______% 435,000.............. 2021 ______% 930,000 ......... 2028 ______%
******* ............ **** 440,000.............. 2022 ______% 960,000 ......... 2029 ______%
100,000 ............ 2017 ______% 450,000.............. 2023 ______% 1,085,000 ......... 2030 ______%
200,000 ............ 2018 ______% 460,000.............. 2024 ______% 1,120,000 ......... 2031 ______%
350,000 ............ 2019 ______% 475,000.............. 2025 ______% 1,265,000 ......... 2032 ______%
480,000.............. 2026 ______%
Any consecutive maturities may be aggregated into term bonds at the option of the bidder,
in which case the mandatory redemption provisions shall be on the same schedule as above.
Maturities: _______ Term Maturity _______ Maturities: _______ Term Maturity _______ Maturities: _______ Term Maturity _______
Maturities: _______ Term Maturity _______ Maturities: _______ Term Maturity _______
The Bonds are to be executed and delivered to us in accordance with the terms of this bid accompanied by the approving legal opinion of Katten Muchin
Rosenman LLP, Chicago, Illinois. The City will pay for the legal opinion. The underwriter agrees to apply for CUSIP numbers within 24 hours and pay the fee
charged by the CUSIP Service Bureau and will accept the Bonds with the CUSIP numbers as entered on the Bonds.
As evidence of our good faith, we enclose herewith a check or Surety Bond payable to the order of the Treasurer of the City in the amount of TWO
PERCENT OF PAR (the “Deposit”) under the terms provided in your Official Notice of Sale. Attached hereto is a list of members of our account on whose behalf
this bid is made.
Form of Deposit Account Manager Information Bidders Option Insurance
Check One:
Name
Certified/Cashier’s Check [ ]
Financial Surety Bond [ ] Address
Wire Transfer [ ]
By
Amount: $196,800
City State/Zip
Direct Phone ( )
FAX Number ( )
E-Mail Address
The foregoing bid was accepted and the Bonds sold by ordinance of the City on September 16, 2013, and receipt is hereby acknowledged of the good
faith Deposit which is being held in accordance with the terms of the annexed Official Notice of Sale.
CITY OF LAKE FOREST, LAKE COUNTY, ILLINOIS
*Subject to change. Mayor
----------------------- NOT PART OF THE BID -----------------------
(Calculation of true interest cost)
Bid Post Sale Revision
Gross Interest $
Less Premium $
True Interest Cost $
True Interest Rate % %
TOTAL BOND YEARS 136,563.00
AVERAGE LIFE 13.878 Years Years
We have purchased
insurance from:
Name of Insurer
(Please fill in)
_____________________
Premium: _____________
Maturities: (Check One)
[__] ______________Years
[__] All
104
OFFICIAL NOTICE OF SALE
(Open Speer Auction)
$9,840,000*
CITY OF LAKE FOREST
Lake County, Illinois
General Obligation Refunding Bonds, Series 2013
The City of Lake Forest, Lake County, Illinois (the “City”), will receive open auction electronic bids on the SpeerAuction
(“SpeerAuction”) website address “www.SpeerAuction.com” for its $9,840,000* General Obligation Refunding Bonds, Series 2013 (the
“Bonds”), on an all or none basis between 10:45 A.M. and 11:00 A.M., C.D.T., Monday, September 16, 2013. To bid, bidders must have: (1)
completed the registration form on the SpeerAuction website, and (2) requested and received admission to the City’s sale (as described below).
Award will be made or all bids rejected at a meeting of the City Council to be held on that date. The City reserves the right to change the date or
time for receipt of bids. Any such change shall be made not less than twenty-four (24) hours prior to the revised date and time for receipt of the
bids for the Bonds and shall be communicated by publishing the changes in the Amendments Page of the SpeerAuction webpage and through
Thompson Municipal News.
The Bonds will constitute valid and legally binding general obligations of the City payable both as to principal and interest from ad
valorem taxes levied against all taxable property in the City without limitation as to rate or amount, except that the rights of the owners of the
Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting
creditors’ rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion.
Bidding Details
Bidders should be aware of the following bidding details associated with the sale of the Bonds.
(1) All bids must be submitted on the SpeerAuction website at www.SpeerAuction.com. No telephone, telefax or
personal delivery bids will be accepted. The use of SpeerAuction shall be at the bidder’s risk and expense and the
City shall have no liability with respect thereto, including (without limitation) liability with respect to incomplete,
late arriving and non-arriving bid. Any questions regarding bidding on the SpeerAuction website should be directed
to the Auction Administrator, Grant Street Group, at (412) 391-5555 x 370.
(2) If any new bid in the auction becomes a leading bid two (2) minutes prior to the end of the auction, then the auction
will be automatically extended by two (2) minutes from the time such bid was received by SpeerAuction. The
auction end time will continue to be extended, indefinitely, until a single leading bid remains the leading bid for at
least two minutes.
(3) Bidders may change and submit bids as many times as they like during the bidding time period; provided, however,
each and any bid submitted subsequent to a bidder’s initial bid must result in a lower true interest cost (“TIC”) with
respect to a bid, when compared to the immediately preceding bid of such bidder. In the event that the revised bid
does not produce a lower TIC with respect to a bid, the prior bid will remain valid.
(4) The last bid submitted by a bidder before the end of the bidding time period will be compared to all other final bids
submitted by others to determine the winning bidder or bidders.
(5) During the bidding, no bidder will see any other bidder’s bid, but bidders will be able to see the ranking of their bid
relative to other bids (i.e., “Leader”, “Cover”, “3rd” etc.)
(6) On the Auction Page, bidders will be able to see whether a bid has been successfully submitted.
Rules of SpeerAuction
Bidders must comply with the Rules of SpeerAuction in addition to the requirements of this Official Notice of Sale. To the extent there
is a conflict between the Rules of SpeerAuction and this Official Notice of Sale, this Official Notice of Sale shall control.
*Subject to change.
105
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
Official Notice of Sale, Page 2 of 4
*Subject to change.
Rules
(1) A bidder (“Bidder”) submitting a winning bid (“Winning Bid”) is irrevocably obligated to purchase the Bonds at the
rates and prices of the winning bid, if acceptable to the City, as set forth in the related Official Notice of Sale.
Winning Bids are not officially awarded to Winning Bidders until formally accepted by the City.
(2) Neither the City, Speer Financial, Inc., nor Grant Street Group (the “Auction Administrator”) is responsible
for technical difficulties that result in the loss of the Bidder’s internet connection with SpeerAuction, slowness
in transmission of bids, or other technical problems.
(3) If for any reason a Bidder is disconnected from the Auction Page during the auction after having submitted a
Winning Bid, such bid is valid and binding upon such Bidder, unless the City exercises its right to reject bids, as set
forth herein.
(4) Bids which generate error messages are not accepted until the error is corrected and the bid is received prior to the
deadline.
(5) Bidders accept and agree to abide by all terms and conditions specified in the Official Notice of Sale (including
amendments, if any) related to the auction.
(6) Neither the City, Speer Financial, Inc., nor the Auction Administrator is responsible to any bidder for any defect or
inaccuracy in the Official Notice of Sale, amendments, or Preliminary Official Statement as they appear on
SpeerAuction.
(7) Only Bidders who request and receive admission to an auction may submit bids. SpeerAuction and the Auction
Administrator reserve the right to deny access to SpeerAuction website to any Bidder, whether registered or not, at
any time and for any reason whatsoever, in their sole and absolute discretion.
(8) Neither the City, Speer Financial, Inc., nor the Auction Administrator is responsible for protecting the
confidentiality of a Bidder’s SpeerAuction password.
(9) If two bids submitted in the same auction by two or more different Bidders result in same True Interest Cost, the first
confirmed bid received by SpeerAuction prevails. Any change to a submitted bid constitutes a new bid, regardless of
whether there is a corresponding change in True Interest Cost.
(10) Bidders must compare their final bids to those shown on the Observation Page immediately after the bidding time
period ends, and if they disagree with the final results shown on the Observation Page they must report them to the
Auction Administrator within 15 minutes after the bidding time period ends. Regardless of the final results reported
by SpeerAuction, Bonds are definitively awarded to the winning bidder only upon official award by the City. If, for
any reason, the City fails to: (i) award Bonds to the winner reported by SpeerAuction, or (ii) deliver Bonds to
winning bidder at settlement, neither the City, Speer Financial, Inc., nor the Auction Administrator will be liable for
damages.
The City reserves the right to reject all proposals, to reject any bid proposal not conforming to this Official Notice of Sale, and to waive
any irregularity or informality with respect to any proposal. Additionally, the City reserves the right to modify or amend this Official Notice of
Sale; however, any such modification or amendment shall not be made less than twenty-four (24) hours prior to the date and time for receipt of
bids on the Bonds and any such modification or amendment will be announced on the Amendments Page of the SpeerAuction webpage and
through Thompson Municipal News.
The Bonds will be in fully registered form in the denominations of $5,000 and integral multiples thereof in the name of Cede & Co. as
nominee of The Depository Trust Company (“DTC”), New York, New York, to which principal and interest payments on the Bonds will be paid.
Individual purchases will be in book-entry form only. Interest on each Bond shall be paid by check or draft of the Bond Registrar to the person in
whose name such bond is registered at the close of business on the fifteenth day of the month next preceding an interest payment date. The
principal of the Bonds shall be payable in lawful money of the United States of America at the principal office maintained for the purpose by the
Bond Registrar in Chicago, Illinois. Semiannual interest is due June 15 and December 15 of each year, commencing June 15, 2014, and is
payable by Wells Fargo Bank, N.A., Chicago, Illinois (the “Bond Registrar”). The Bonds are dated the date of delivery (expected to be on or
about October 3, 2013).
MATURITIES* – DECEMBER 15
$ 65,000 .............. 2014 $430,000 ..............2020 $ 495,000 ........... 2027
100,000 .............. 2015 435,000 ..............2021 930,000 ........... 2028
******* .............. **** 440,000 ..............2022 960,000 ........... 2029
100,000 .............. 2017 450,000 ..............2023 1,085,000 ........... 2030
200,000 .............. 2018 460,000 ..............2024 1,120,000 ........... 2031
350,000 .............. 2019 475,000 ..............2025 1,265,000 ........... 2032
480,000 ..............2026
Any consecutive maturities may be aggregated into term bonds at the option of the bidder,
in which case the mandatory redemption provisions shall be on the same schedule as above.
*Subject to change.
106
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
Official Notice of Sale, Page 3 of 4
*Subject to change.
The Bonds maturing on or after December 15, 2022, are callable in whole or in part on any date on or after December 15, 2021, at a
price of par and accrued interest. If less than all the Bonds are called, they shall be redeemed in such principal amounts and from such maturities
as determined by the City and within any maturity by lot.
All interest rates must be in multiples of one-eighth or one one-hundredth of one percent (1/8 or 1/100 of 1%), and not more than one
rate for a single maturity shall be specified. The rates bid shall be in non-descending order. The differential between the highest rate bid and the
lowest rate bid shall not exceed six percent (6%). All bids must be for all of the Bonds and must be for not less than $9,761,280.
Award of the Bonds: The Bonds will be awarded on the basis of true interest cost, determined in the following manner. True interest
cost shall be computed by determining the annual interest rate (compounded semi-annually) necessary to discount the debt service payments on the
Bonds from the payment dates thereof to the dated date and to the bid price. For the purpose of calculating true interest cost, the Bonds shall be
deemed to become due in the principal amounts and at the times set forth in the table of maturities set forth above.
The Bonds will be awarded to the bidder complying with the terms of this Official Notice of Sale whose bid produces the lowest true
interest cost rate to the City as determined by the City’s Financial Advisor, which determination shall be conclusive and binding on all bidders;
provided, that the City reserves the right to reject all bids or any non-conforming bid and reserves the right to waive any informality in any bid.
Bidders should verify the accuracy of their final bids and compare them to the winning bids reported on the SpeerAuction Observation Page
immediately after the bidding.
The premium or discount, if any, is subject to pro rata adjustment if the maturity amounts of the Bonds are changed, allowing
the same dollar amount of gross spread per $1,000 bond as bid and assuming a delivery date of October 3, 2013.
The true interest cost of each bid will be computed by SpeerAuction and reported on the Observation Page of the SpeerAuction webpage
immediately following the date and time for receipt of bids. These true interest costs are subject to verification by the City’s Financial Advisor,
will be posted for information purposes only and will not signify an actual award of any bid or an official declaration of the winning bid. The
City or its Financial Advisor will notify the bidder to whom the Bonds will be awarded, if and when such award is made.
The winning bidder will be required to make the standard filings and maintain the appropriate records routinely required pursuant to
MSRB Rules G-8, G-11 and G-36. The winning bidder will be required to pay the standard MSRB charge for Bonds purchased. In addition, the
winning bidder who is a member of the Securities Industry and Financial Markets Association (“SIFMA”) will be required to pay SIFMA’s
standard charge per bond.
Each bid shall be accompanied by a certified or cashier’s check on, or a wire transfer from, a solvent bank or trust company or a
Financial Surety Bond for TWO PERCENT OF PAR payable to the Treasurer of the City as evidence of good faith of the bidder (the
“Deposit”). The Deposit of the successful bidder will be retained by the City pending delivery of the Bonds and all others will be promptly
returned. Should the successful bidder fail to take up and pay for the Bonds when tendered in accordance with this Notice of Sale and said bid,
said Deposit shall be retained as full and liquidated damages to the City caused by failure of the bidder to carry out the offer of purchase. Such
Deposit will otherwise be applied on the purchase price upon delivery of the Bonds. No interest on the Deposit will accrue to the purchaser.
If a wire transfer is used for the Deposit, it must be sent according to the following wire instructions:
Amalgamated Bank of Chicago
Corporate Trust
One West Monroe
Chicago, IL 60603
ABA # 071003405
Credit to: 1853281001 Speer Bidding Escrow
RE: City of Lake Forest, Lake County, Illinois
bid for the $9,840,000* General Obligation Refunding Bonds, Series 2013
The wire shall arrive in such account no later than 30 minutes prior to the date and time of the sale of the Bonds. Contemporaneously
with such wire transfer, the bidder shall send an email to biddingescrow@aboc.com with the following information: (1) indication that a wire
transfer has been made, (2) the amount of the wire transfer, (3) the issue to which it applies, and (4) the return wire instructions if such bidder is
not awarded the Bonds. The City and any bidder who chooses to wire the Deposit hereby agree irrevocably that Speer Financial, Inc. (“Speer”)
shall be the escrow holder of the Deposit wired to such account subject only to these conditions and duties: (i) if the bid is not accepted, Speer
shall, at its expense, promptly return the Deposit amount to the unsuccessful bidder; (ii) if the bid is accepted, the Deposit shall be forwarded to
the City; (iii) Speer shall bear all costs of maintaining the escrow account and returning the funds to the bidder; (iv) Speer shall not be an insurer
of the Deposit amount and shall have no liability except if it willfully fails to perform, or recklessly disregards, its duties specified herein; and (v)
income earned on the Deposit, if any, shall be retained by Speer.
*Subject to change.
107
City of Lake Forest, Lake County, Illinois
$9,840,000* General Obligation Refunding Bonds, Series 2013
Official Notice of Sale, Page 4 of 4
*Subject to change.
If a Financial Surety Bond is used for the Deposit, it must be from an insurance company licensed to issue such a bond in the State of
Illinois and such bond must be submitted to Speer prior to the opening of the bids. The Financial Surety Bond must identify each bidder whose
deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to a bidder using a Financial Surety Bond, then that pur chaser is
required to submit its Deposit to the City in the form of a certified or cashier’s check or wire transfer as instructed by Speer, or the City not later
than 3:00 P.M. on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be
drawn by the City to satisfy the Deposit requirement.
The City covenants and agrees to enter into a written agreement or contract, constituting an undertaking (the “Undertaking”) to provide
ongoing disclosure about the City for the benefit of the beneficial owners of the Bonds on or before the date of delivery of the Bonds as required
under Section (b)(5) of Rule 15c2-12 (the “Rule”) adopted by the Securities and Exchange Commission under the Securities Exchange Act of
1934. The Undertaking shall be as described in the Official Statement, with such changes as may be agreed in writing by the Underwriter. The
City represents that it is in compliance with each and every undertaking previously entered into it pursuant to the Rule.
The Underwriter's obligation to purchase the Bonds shall be conditioned upon the City delivering the Undertaking on or before the date
of delivery of the Bonds.
The winning bidder shall provide a certificate, in form as drafted by or acceptable to Bond Counsel, to evidence the issue price of each
maturity of the Bonds, the form of which certificate is available upon request.
By submitting a bid, any bidder makes the representation that it understands Bond Counsel represents the City in the Bond transaction
and, if such bidder has retained Bond Counsel in an unrelated matter, such bidder represents that the signatory to the bid is duly authorized to, and
does hereby consent to and waive for and on behalf of such bidder any conflict of interest arising from any adverse position to the City in this
matter; such consent and waiver shall supersede any formalities otherwise required in any separate understandings, guidelines or contractual
arrangements between the bidder and Bond Counsel.
The Bonds will be delivered to the successful purchaser against full payment in immediately available funds as soon as they can be
prepared and executed, which is expected to be on or about October 3, 2013. Should delivery be delayed beyond sixty (60) days from the date of
sale for any reason beyond the control of the City except failure of performance by the purchaser, the City may cancel the award or the purchaser
may withdraw the good faith deposit and thereafter the purchaser's interest in and liability for the Bonds will cease.
The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts, and
interest rates of the Bonds, and any other information required by law or deemed appropriate by the City, shall constitute a “Final Official
Statement” of the City with respect to the Bonds, as that term is defined in the Rule. By awarding the Bonds to any underwriter or underwriting
syndicate, the City agrees that, no more than seven (7) business days after the date of such award, it shall provide, without cost to the senior
managing underwriter of the syndicate to which the Bonds are awarded, up to 100 copies of the Final Official Statement to permit each
“Participating Underwriter” (as that term is defined in the Rule) to comply with the provisions of such Rule. The City shall treat the senior
managing underwriter of the syndicate to which the Bonds are awarded as its designated agent for purposes of distributing copies of the Final
Official Statement to each Participating Underwriter. Any underwriter executing and delivering an Official Bid Form with respect to the Bonds
agrees thereby that if its bid is accepted by the City it shall enter into a contractual relationship with all Participating Underwriters of the Bonds
for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement.
By submission of its bid, the senior managing underwriter of the successful bidder agrees to supply all necessary pricing information and
any Participating Underwriter identification necessary to complete the Official Statement within 24 hours after award of the Bonds. Additional
copies of the Final Official Statement may be obtained by Participating Underwriters from the printer at cost.
The City will, at its expense, deliver the Bonds to the purchaser in New York, New York, through the facilities of DTC and will pay for
the bond attorney’s opinion. At the time of closing, the City will also furnish to the purchaser the following documents, each dated as of the date
of delivery of the Bonds: (1) the unqualified opinion of Katten Muchin Rosenman LLP, Chicago, Illinois, that the Bonds are lawful and
enforceable; (2) the opinion of said attorneys that the interest on the Bonds is exempt from federal income taxes as and to the extent set forth in
the Official Statement for the Bonds; and (3) a no litigation certificate by the City.
The City has authorized the printing and distribution of an Official Statement containing pertinent information relative to the City and the
Bonds. Copies of such Official Statement or additional information may be obtained from Ms. Elizabeth Holleb, Director of Finance, City of
Lake Forest, 800 North Field Drive, Lake Forest, Illinois 60045; telephone (847) 810-3612 or an electronic copy of this Official Statement is
available from the www.speerfinancial.com web site under “Debt Auction Center/Official Statements Sales Calendar/Competitive” from the
Independent Public Finance Consultants to the City, Speer Financial, Inc., One North LaSalle Street, Suite 4100, Chicago, Illinois 60602,
telephone (312) 346-3700.
/s/ DONALD P. SCHOENHEIDER /s/ ROBERT R. KIELY, JR.
Mayor City Manager
CITY OF LAKE FOREST CITY OF LAKE FOREST
Lake County, Illinois Lake County, Illinois
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ORDINANCE NO. _______________
ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL
OBLIGATION REFUNDING BONDS, SERIES 2013, OF THE CITY OF
LAKE FOREST, ILLINOIS
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAKE FOREST,
ILLINOIS, AS FOLLOWS:
Section 1. Authority and Purposes. This ordinance is adopted pursuant to
Section 6 of Article VII of the Illinois Constitution of 1970 for the purpose of providing for
the refunding and redemption of the $9,665,000 outstanding principal amount of
General Obligation Bonds, Series 2010A (the “Prior Bonds”) of The City of Lake Forest,
Illinois (the “City”).
It is found and determined that the refunding and redemption of the Prior Bonds
as authorized by this ordinance is for a proper public purpose.
Section 2. Redemption and Refunding Plan. The City hereby determines to
refund the Prior Bonds and elects to redeem the Prior Bonds on December 15, 2013.
Each Prior Bond shall be redeemed at a redemption price equal to the principal amount
thereof to be redeemed together with accrued interest to the redemption date.
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The Mayor, the City Manager, the Director of Finance and the other officers and
officials of the City are authorized and directed to do, or cause to be done, all things
necessary to accomplish the refunding and redemption of the Prior Bonds.
Section 3. Appropriation. The sum of $_______________ is appropriated to
meet part of the costs of the refunding of the Prior Bonds including the costs of issuance
of the general obligation bonds of the City authorized by this ordinance.
Section 4. Authorization of Bonds. Pursuant to the home rule powers of the
City to incur debt payable from ad valorem property tax receipts and for the purpose of
financing the appropriation provided in Section 3 of this ordinance, unlimited tax general
obligation bonds of the City are authorized to be issued and sold as a single series in an
aggregate principal amount of $_______________ and to be designated as the
“General Obligation Refunding Bonds, Series 2013” (the “2013 Bonds”).
Section 5. Terms of Bonds. The 2013 Bonds shall be issuable in the
denominations of $5,000 or any integral multiple thereof and may bear such identifying
numbers or letters as shall be useful to facilitate the registration, transfer and exchange
of 2013 Bonds. Unless otherwise determined in the order to authenticate the 2013
Bonds, each 2013 Bond delivered upon the original issuance of the 2013 Bonds shall
be dated as of its date of original issuance and delivery. Each 2013 Bond thereafter
issued upon any transfer, exchange or replacement of 2013 Bonds shall be dated so
that no gain or loss of interest shall result from such transfer, exchange or replacement.
The principal of the 2013 Bonds shall be payable in lawful money of the United
States of America upon presentation and surrender thereof at the corporate trust office
of Wells Fargo Bank, N.A., in the City of Chicago, Illinois, which is hereby appointed as
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bond registrar and paying agent for the 2013 Bonds. Each 2013 Bond shall bear
interest from its date, computed on the basis of a 360 day year consisting of twelve 3 0
day months and shall be payable in lawful money of the United States of America on
each interest payment date to the registered owners of record thereof appearing on the
registration books maintained by the City for such purpose at the corporate trust office
of the bond registrar, as of the close of business on the first day of the calendar month
of the applicable interest payment date. Interest on the 2013 Bonds shall be paid by
check or draft mailed to such registered owners at their addresses appearing on the
registration books or by wire transfer pursuant to an agreement by and between the City
and the registered owner.
The 2013 Bonds shall mature on December 15 in each year shown in the
following table in the respective principal amount set forth opposite each such year and
the 2013 Bonds maturing in each such year shall bear interest at the respective rate per
annum set forth opposite such year:
Year Principal Amount Interest Rate
20__ $ ,000 . %
20__ ,000
20__ ,000
20__ ,000
20__ ,000
20__ ,000
20__ ,000
20__ ,000
20__ ,000
20__ ,000
Interest on each 2013 Bond shall be payable on June 15, 2014 and semiannually
thereafter on each June 15 and December 15 at the rates per annum herein
determined.
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The 2013 Bonds maturing on or after December 15, 2022 shall be subject to
redemption prior to maturity at the option of the City and upon notice as herein provided,
in such principal amounts and from such maturities as the City shall determine and by
lot within a single maturity, on December 15, 2021 and on any date thereafter, at a
redemption price equal to the principal amount thereof to be redeemed.
The 2013 Bonds maturing on December 15, 20__, shall be subject to mandatory
redemption, in part and by lot, on December 15 of the years 20__ to 20__, both
inclusive, in the following principal amounts, each constituting a sinking fund installment
for the retirement of the 2013 Bonds maturing on December 15, 20__:
Year Principal Amount
20__ $ ,000
20__ ,000
20__ ,000
The final principal amount of the 2013 Bonds maturing on December 15, 20__, is
$_____,000.
The 2013 Bonds maturing on December 15, 20__, shall be subject to mandatory
redemption, in part and by lot, on December 15 of the years 20__ to 20__, both
inclusive, in the following principal amounts, each constituting a sinking fund installment
for the retirement of the 2013 Bonds maturing on December 15, 20__:
Year Principal Amount
20__ $ ,000
20__ ,000
20__ ,000
The final principal amount of the 2013 Bonds maturing on December 15, 20__, is
$_____,000.
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All 2013 Bonds subject to mandatory sinking fund redemption shall be redeemed
at a redemption price equal to the principal amount thereof to be redeemed. The bond
registrar is hereby authorized and directed to mail notice of the mandatory sinking fund
redemption of the 2013 Bonds in the manner herein provided.
Whenever 2013 Bonds subject to mandatory sinking fund redemption are
redeemed at the option of the City, the principal amount thereof so redeemed shall be
credited against the unsatisfied balance of future sinking fund installments or final
principal amount established with respect to such 2013 Bonds, in such amounts and
against such installments or final principal amount as shall be determined by the City in
the proceedings authorizing such optional redemption or, in the absence of such
determination, shall be credited pro-rata against the unsatisfied balance of the
applicable sinking fund installments and final principal amount.
On or prior to the 60th day preceding any sinking fund installment date, the City
may purchase 2013 Bonds, which are subject to mandatory redemption on such sinking
fund installment date, at such prices as the City shall determine. Any 2013 Bond so
purchased shall be cancelled and the principal amount thereof so purchased shall be
credited against the unsatisfied balance of the next ensuing sinking fund installment of
the bonds of the same maturity as the 2013 Bond so purchased.
In the event of the redemption of less than all the 2013 Bonds of like maturity, the
aggregate principal amount thereof to be redeemed shall be $5,000 or an integral
multiple thereof and the bond registrar shall assign to each 2013 Bond of such maturity
a distinctive number for each $5,000 principal amount of such 2013 Bond and shall
select by lot from the numbers so assigned as many numbers as, at $5,000 for each
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number, shall equal the principal amount of such 2013 Bonds to be redeemed. The
2013 Bonds to be redeemed shall be the 2013 Bonds to which were assigned numbers
so selected; provided that only so much of the principal amount of each 2013 Bond shall
be redeemed as shall equal $5,000 for each number assigned to it and so selected.
Notice of the redemption of 2013 Bonds shall be mailed not less than 30 days
nor more than 60 days prior to the date fixed for such redemption to the registered
owners of 2013 Bonds to be redeemed at their last addresses appearing on said
registration books. The 2013 Bonds or portions thereof specified in said notice shall
become due and payable at the applicable redemption price on the redemption date
therein designated, and if, on the redemption date, moneys for payment of the
redemption price of all the 2013 Bonds or portions thereof to be redeemed, together
with interest to the redemption date, shall be available for such payment on said date,
and if notice of redemption shall have been mailed as aforesaid (and notwithstanding
any defect therein or the lack of actual receipt thereof by any registered owner) then
from and after the redemption date interest on such 2013 Bonds or portions thereof
shall cease to accrue and become payable. If there shall be drawn for redemption less
than all of a 2013 Bond, the City shall execute and the bond registrar shall authenticate
and deliver, upon the surrender of such 2013 Bond, without charge to the owner
thereof, in exchange for the unredeemed balance of the 2013 Bond so surrendered,
2013 Bonds of like maturity and interest rate and of the denomination of $5,000 or any
integral multiple thereof.
The bond registrar shall not be required to transfer or exchange any 2013 Bond
after notice of the redemption of all or a portion thereof has been mailed. The bond
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registrar shall not be required to transfer or exchange any 2013 Bond during a period of
15 days next preceding the mailing of a notice of redemption that could designate for
redemption all or a portion of such 2013 Bond.
Section 6. Sale and Delivery. The 2013 Bonds are sold to
______________________________, as purchaser, at a price of $_______________
and accrued interest from their date to the date of delivery and payment therefor. The
Official Statement prepared with respect to the 2013 Bonds is approved and “deemed
final” as of its date for purposes of Securities and Exchange Commission Rule 15c2-12
promulgated under the Securities Exchange Act of 1934.
The Mayor, City Clerk and other officials of the City are authorized and directed
to do and perform, or cause to be done or performed for or on behalf of the City each
and every thing necessary for the issuance of the 2013 Bonds, including the proper
execution and delivery of the 2013 Bonds and the Official Statement.
Section 7. Execution and Authentication. Each 2013 Bond shall be
executed in the name of the City by the manual or authorized facsimile signature of its
Mayor and the corporate seal of the City, or a facsimile thereof, shall be thereunto
affixed or otherwise reproduced thereon and attested by the manual or authorized
facsimile signature of its City Clerk.
In case any officer whose signature, or a facsimile of whose signature, shall
appear on any 2013 Bond shall cease to hold such office before the issuance of the
2013 Bond, such 2013 Bond shall nevertheless be valid and sufficient for all purposes,
the same as if the person whose signature, or a facsimile thereof, appears on such
2013 Bond had not ceased to hold such office. Any 2013 Bond may be signed, sealed
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or attested on behalf of the City by any person who, on the date of such act, shall hold
the proper office, notwithstanding that at the date of such 2013 Bond such person may
not have held such office. No recourse shall be had for the payment of any 2013 Bonds
against any officer who executes the 2013 Bonds.
Each 2013 Bond shall bear thereon a certificate of authentication executed
manually by the bond registrar. No 2013 Bond shall be entitled to any right or benefit
under this ordinance or shall be valid or obligatory for any purpose until such certificate
of authentication shall have been duly executed by the bond registrar.
Section 8. Transfer, Exchange and Registry. The 2013 Bonds shall be
negotiable, subject to the provisions for registration of transfer contained herein. Each
2013 Bond shall be transferable only upon the registration books maintained by the City
for that purpose at the corporate trust office of the bond registrar, by the registered
owner thereof in person or by his attorney duly authorized in writing, upon surrender
thereof together with a written instrument of transfer satisfactory to the bond registrar
and duly executed by the registered owner or his duly authorized attorney. Upon the
surrender for transfer of any such 2013 Bond, the City shall execute and the bond
registrar shall authenticate and deliver a new 2013 Bond or 2013 Bonds registered in
the name of the transferee, of the same aggregate principal amount, maturity and
interest rate as the surrendered 2013 Bond. 2013 Bonds, upon surrender thereof at the
corporate trust office of the bond registrar, with a written instrument satisfactory to the
bond registrar, duly executed by the registered owner or his attorney duly authorized in
writing, may be exchanged for an equal aggregate principal amount of 2013 Bonds of
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the same maturity and interest rate and of the denominations of $5,000 or any integral
multiple thereof.
For every such exchange or registration of transfer of 2013 Bonds, the City or the
bond registrar may make a charge sufficient for the reimbursement of any tax, fee or
other governmental charge required to be paid with respect to such exchange or
transfer, which sum or sums shall be paid by the person requesting such exchange or
transfer as a condition precedent to the exercise of the privilege of making such
exchange or transfer. No other charge shall be made for the privilege of making such
transfer or exchange. The provisions of the Illinois Bond Replacement Act shall govern
the replacement of lost, destroyed or defaced 2013 Bonds.
The City and the bond registrar may deem and treat the person in whose name
any 2013 Bond shall be registered upon the registration books as the absolute owner of
such 2013 Bond, whether such 2013 Bond shall be overdue or not, for the purpose of
receiving payment of, or on account of, the principal of or interest thereon and for all
other purposes whatsoever, and all such payments so made to any such registered
owner or upon his order shall be valid and effectual to satisfy and discharge the liability
upon such 2013 Bond to the extent of the sum or sums so paid, and neither the City nor
the bond registrar shall be affected by any notice to the contrary.
Section 9. General Obligations. The full faith and credit of the City are
hereby irrevocably pledged to the punctual payment of the principal of and interest on
the 2013 Bonds. The 2013 Bonds shall be direct and general obligations of the City,
and the City shall be obligated to levy ad valorem taxes upon all the taxable property in
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the City for the payment of the 2013 Bonds and the interest thereon, without limitation
as to rate or amount.
Section 10. Form of Bonds. The 2013 Bonds shall be issued as fully
registered bonds and shall be in substantially the following form, the blanks to be
appropriately completed when the 2013 Bonds are printed:
No. ________
United States of America
State of Illinois
County of Lake
THE CITY OF LAKE FOREST
GENERAL OBLIGATION REFUNDING BOND,
SERIES 2013
INTEREST RATE MATURITY DATE DATED DATE CUSIP
. % December 15, 20__ __________, 2013 ______ ___
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT:
THE CITY OF LAKE FOREST, a municipal corporation and a home rule unit of
the State of Illinois situate in the County of Lake, acknowledges itself indebted and for
value received hereby promises to pay to the registered owner of this bond, or
registered assigns, the principal amount specified above on the maturity date specified
above, and to pay interest on such principal amount from the date hereof at the interest
rate per annum specified above, computed on the basis of a 360 day year consisting of
twelve 30 day months and payable in lawful money of the United States of America on
June 15, 2014 and semiannually thereafter on June 15 and December 15 in each year
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until the principal amount shall have been paid, to the registered owner of record hereof
as of the first day of the calendar month of such interest payment date, by wire transfer
pursuant to an agreement by and between the City and the registered owner, or
otherwise by check or draft mailed to the registered owner at the address of such owner
appearing on the registration books maintained by the City for such purpose at the
corporate trust office of Wells Fargo Bank, N.A., in the City of Chicago, Illinois, as bond
registrar or its successor (the “Bond Registrar”). This bond, as to principal when due,
will be payable in lawful money of the United States of America upon presentation and
surrender of this bond at the corporate trust office of the Bond Registrar. The full faith
and credit of the City are irrevocably pledged for the punctual payment of the principal
of and interest on this bond according to its terms.
This bond is one of a series of bonds issued in the aggregate principal amount of
$_______________, which are authorized and issued under and pursuant to Section 6
of Article VII of the Illinois Constitution of 1970 and under and in accordance with an
ordinance adopted by the City Council of the City on September 16, 2013 and entitled:
“Ordinance Authorizing the Issuance of General Obligation Refunding Bonds, Series
2013, of The City of Lake Forest, Illinois.”
The bonds of such series maturing on or after December 15, 2022 are subject to
redemption prior to maturity at the option of the City and upon notice as herein provided,
in such principal amounts and from such maturities as the City shall determine and by
lot within a single maturity, on December 15, 2021 and on any date thereafter, at a
redemption price equal to the principal amount thereof to be redeemed.
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The bonds of such series maturing in the years 20___, 20___ and 20___ (the
“Term Bonds”) are subject to mandatory redemption, in part and by lot, on December 15
of the years and in the respective principal amounts set forth in the following tables, by
the application of sinking fund installments, at a redemption price equal to the principal
amount thereof to be redeemed:
20___ Term Bonds 20___ Term Bonds 20___ Term Bonds
Year Principal Amount Year Principal Amount Year Principal Amount
20__ $ ,000 20__ $ ,000 20__ $ ,000
20__ ,000 20__ ,000 20__ ,000
20__ ,000 20__ ,000 20__ ,000
Notice of the redemption of bonds will be mailed not less than 30 days nor more
than 60 days prior to the date fixed for such redemption to the registered owners of
bonds to be redeemed at their last addresses appearing on such registration books.
The bonds or portions thereof specified in said notice shall become due and payable at
the applicable redemption price on the redemption date therein designated, and if, on
the redemption date, moneys for payment of the redemption price of all the bonds or
portions thereof to be redeemed, together with interest to the redemption date, shall be
available for such payment on said date, and if notice of redemption shall have been
mailed as aforesaid (and notwithstanding any defect therein or the lack of actual receipt
thereof by any registered owner) then from and after the redemption date interest on
such bonds or portions thereof shall cease to accrue and become payable.
This bond is transferable only upon such registration books by the registered
owner hereof in person, or by his attorney duly authorized in writing, upon surrender
hereof at the corporate trust office of the Bond Registrar together with a written
instrument of transfer satisfactory to the Bond Registrar duly executed by the registered
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owner or by his duly authorized attorney, and thereupon a new registered bond or
bonds, in the authorized denominations of $5,000 or any integral multiple thereof and of
the same aggregate principal amount, maturity and interest rate as this bond shall be
issued to the transferee in exchange therefor. In like manner, this bond may be
exchanged for an equal aggregate principal amount of bonds of the same maturity and
interest rate and of any of such authorized denominations. The City or the Bond
Registrar may make a charge sufficient for the reimbursement of any tax, fee or other
governmental charge required to be paid with respect to the transfer or exchange of this
bond. No other charge shall be made for the privilege of making such transfer or
exchange. The City and the Bond Registrar may treat and consider the person in
whose name this bond is registered as the absolute owner hereof for the purpose of
receiving payment of, or on account of, the principal and interest due hereon and for all
other purposes whatsoever.
This bond shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been duly executed by the Bond
Registrar.
It is hereby certified, recited and declared that all acts, conditions and things
required to be done, exist and be performed precedent to and in the issuance of this
bond in order to make it a legal, valid and binding obligation of the City have been done,
exist and have been performed in regular and due time, form and manner as required
by law, and that the series of bonds of which this bond is one, together with all other
indebtedness of the City, is within every debt or other limit prescribed by law.
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IN WITNESS WHEREOF, The City of Lake Forest has caused this bond to be
executed in its name and on its behalf by the manual or facsimile signature of its Mayor,
and its corporate seal, or a facsimile thereof, to be hereunto affixed or otherwise
reproduced hereon and attested by the manual or facsimile signature of its City Clerk.
Dated: _______________, 2013
CERTIFICATE OF AUTHENTICATION
This bond is one of the General
Obligation Refunding Bonds, Series
2013, described in the within mentioned
Ordinance.
WELLS FARGO BANK, N.A.,
as Bond Registrar
By ____________________________
Authorized Signer
THE CITY OF LAKE FOREST
________________________________
Mayor
Attest:
________________________________
City Clerk
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ASSIGNMENT
For value received the undersigned sells, assigns and transfers unto _________
_____________________________________________________________________
the within bond and hereby irrevocably constitutes and appoints __________________
_____________________________________________________________________
attorney to transfer the said bond on the books kept for registration thereof, with full
power of substitution in the premises.
Dated ____________________
_______________________________
Signature Guarantee:
_______________________________
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Section 11. Levy and Extension of Taxes. For the purpose of providing the
money required to pay the interest on the 2013 Bonds when and as the same falls due
and to pay and discharge the principal thereof (including mandatory sinking fund
installments) as the same shall mature, there is hereby levied upon all the taxable
property in the City, in each year while any of the 2013 Bonds shall be outstanding, a
direct annual tax sufficient for that purpose in addition to all other taxes, as follows:
Tax Levy Year A Tax Sufficient to Produce
2013 $
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
Interest or principal coming due at any time when there shall be insufficient funds
on hand to pay the same shall be paid promptly when due from current funds on hand in
advance of the collection of the taxes herein levied; and when said taxes shall have
been collected, reimbursement shall be made to the said funds in the amounts thus
advanced.
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As soon as this ordinance becomes effective, a copy thereof certified by the City
Clerk, which certificate shall recite that this ordinance has been duly adopted, shall be
filed with the County Clerk of Lake County, Illinois, who is hereby directed to ascertain
the rate per cent required to produce the aggregate tax hereinbefore provided to be
levied in the years 2013 to 2031, inclusive, and to extend the same for collection on the
tax books in connection with other taxes levied in said years, in and by the City for
general corporate purposes of the City, and in said years such annual tax shall be
levied and collected in like manner as taxes for general corporate purposes for said
years are levied and collected and, when collected, such taxes shall be used for the
purpose of paying the principal of and interest on the 2013 Bonds herein authorized as
the same become due and payable.
The City Council hereby determines that the levy and extension of taxes
pursuant to this Section is a “legal requirement” within the meaning of Section Two of
Ordinance Number 2008-08 of the City.
Section 12. Taxes Levied for Payment of Prior Bonds. After the issuance of
the 2013 Bonds, the Director of Finance of the City shall file with the County Clerk of
Lake County a certificate listing the Prior Bonds and the taxes theretofore levied for the
payment of the principal of and interest on the Prior Bonds and said certificate shall
direct the abatement of such taxes.
Section 13. Escrow Deposit Agreement. The form of 2013 Escrow Deposit
Agreement, dated as of September 1, 2013, by and between the City and Wells Fargo
Bank, N.A., in the City of Chicago, Illinois, as Escrow Agent, on file in the office of the
City Clerk and presented at this meeting, is hereby approved. The proper officers of the
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City are authorized and directed to execute and deliver the 2013 Escrow Deposit
Agreement on behalf of the City.
Section 14. Application of Bond Proceeds. The proceeds of sale of the 2013
Bonds shall be deposited as follows:
1. To the 2013 Escrow Fund maintained under the 2013 Escrow
Deposit Agreement, the amount, together with any other moneys of the City
deposited therein, necessary to provide for the payment of the interest on and
redemption price of the Prior Bonds.
2. To the 2013 Expense Fund established by this ordinance, the
amount of such proceeds of sale remaining after making the foregoing deposit.
Section 15. Debt Service Fund. Moneys derived from taxes herein levied are
appropriated and set aside for the purpose of paying principal of and interest on the
2013 Bonds when and as the same come due. All of such moneys, and all other
moneys to be used for the payment of the principal of and interest on the 2013 Bonds,
shall be deposited in the “2013 Debt Service Fund”, which is hereby established as a
special fund of the City and shall be administered as a bona fide debt service fund
under the Internal Revenue Code of 1986 (the “Code”).
The moneys deposited or to be deposited into the 2013 Debt Service Fund,
including the tax receipts derived from the taxes levied pursuant to this ordinance, are
pledged as security for the payment of the principal of and interest on the 2013 Bonds.
The pledge is made pursuant to Section 13 of the Local Government Debt Reform Act
and shall be valid and binding from the date of issuance of the 2013 Bonds. All such
tax receipts and the moneys held in the 2013 Debt Service Fund shall immediately be
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subject to the lien of such pledge without any physical delivery or further act and the lien
of such pledge shall be valid and binding as against all parties having claims of any kind
in tort, contract or otherwise against the City irrespective of whether such parties have
notice thereof.
Section 16. Expense Fund. The “2013 Expense Fund”, is hereby established
as a special fund of the City. Moneys in the 2013 Expense Fund shall be used for the
payment of costs of issuance of the 2013 Bonds, but may hereafter be reappropriated
and used for other purposes if such reappropriation is permitted under Illinois law and
will not adversely affect the exclusion from gross income for federal income tax
purposes of interest on the 2013 Bonds.
Section 17. Investment Regulations. No investment shall be made of any
moneys in the 2013 Debt Service Fund, the 2013 Escrow Fund or the 2013 Expense
Fund except in accordance with the tax covenants set forth in Section 18 of this
ordinance. All income derived from such investments in respect of moneys or securities
in any Fund shall be credited in each case to the Fund in which such moneys or
securities are held.
Any moneys in any Fund that are subject to investment yield restrictions may be
invested in United States Treasury Securities, State and Local Government Series,
pursuant to the regulations of the United States Treasury Department, Bureau of Public
Debt, or in any tax-exempt bond that is not an “investment property” within the meaning
of Section 148(b)(2) of the Code. The Director of Finance and agents designated by
her are hereby authorized to submit, on behalf of the City, subscriptions for such United
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States Treasury Securities and to request redemption of such United States Treasury
Securities.
Section 18. Tax Covenants. The City shall not take, or omit to take, any action
lawful and within its power to take, which action or omission would cause interest on
any 2013 Bond to become subject to federal income taxes in addition to federal income
taxes to which interest on such 2013 Bond is subject on the date of original issuance
thereof.
The City shall not permit any of the proceeds of the 2013 Bonds, or any facilities
financed with such proceeds, to be used in any manner that would cause any 2013
Bond to constitute a “private activity bond” within the meaning of Section 141 of the
Code.
The City shall not permit any of the proceeds of the 2013 Bonds or other moneys
to be invested in any manner that would cause any 2013 Bond to constitute an
“arbitrage bond” within the meaning of Section 148 of the Code or a “hedge bond” within
the meaning of Section 149(g) of the Code.
The City shall comply with the provisions of Section 148(f) of the Code relating to
the rebate of certain investment earnings at periodic intervals to the United States of
America.
Section 19. Bank Qualified Designation. The City hereby designates the
2013 Bonds as “qualified tax-exempt obligations” as defined in Section 265(b)(3)(B) of
the Internal Revenue Code of 1986. The City represents that the reasonably
anticipated amount of tax-exempt obligations that are required to be taken into account
for the purpose of Section 265(b)(3)(C) of the Code and will be issued by or on behalf of
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the City and all subordinate entities of the City during 2013 does not exceed
$10,000,000. The City covenants that it will not designate and issue more than
$10,000,000 aggregate principal amount of tax-exempt obligations in the year in which
the 2013 Bonds are issued. For purposes of the two preceding sentences, the term
“tax-exempt obligations” includes “qualified 501(c)(3) bonds” (as defined in Section 145
of the Internal Revenue Code of 1986) but does not include other “private activity
bonds” (as defined in Section 141 of the Internal Revenue Code of 1986).
Section 20. Continuing Disclosure. For the benefit of the beneficial owners of
the 2013 Bonds, the City covenants and agrees to provide to the Municipal Securities
Rulemaking Board (the “MSRB”) for disclosure on the Electronic Municipal Market
Access (“EMMA”) system, in an electronic format as prescribed by the MSRB, (i) an
annual report containing certain financial information and operating data relating to the
City and (ii) timely notices of the occurrence of certain enumerated events. All
documents provided to the MSRB shall be accompanied by identifying information as
prescribed by the MSRB.
The annual report shall be provided to the MSRB for disclosure on EMMA within
210 days after the close of the City’s fiscal year. The information to be contained in the
annual report shall consist of the annual audited financial statement of the City and such
additional information as noted in the Official Statement under the caption “Continuing
Disclosure.” Each annual audited financial statement will conform to generally accepted
accounting principles applicable to governmental units and will be prepared in
accordance with standards of the Governmental Accounting Standards Board. If the
audited financial statement is not available, then an unaudited financial statement shall
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be included in the annual report and the audited financial statement shall be provided
promptly after it becomes available.
The City, in a timely manner not in excess of ten business days after the
occurrence of the event, shall provide notice to the MSRB for disclosure on EMMA of
any failure of the City to provide any such annual report within the 210 day period and of
the occurrence of any of the following events with respect to the 2013 Bonds:
(1) principal and interest payment delinquencies; (2) non payment related defaults, if
material; (3) unscheduled draws on debt service reserves reflecting financial difficulties;
(4) unscheduled draws on credit enhancements reflecting financial difficulties;
(5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax
opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other
material notices or determinations with respect to the tax-exempt status of the 2013
Bonds, or other events affecting the tax-exempt status of the 2013 Bonds;
(7) modifications to rights of bondholders, if material; (8) bond calls, if material;
(9) defeasances; (10) release, substitution or sale of property securing repayment of the
2013 Bonds, if material; (11) rating changes; (12) tender offers; (13) bankruptcy,
insolvency, receivership or similar event of the City; (14) the consummation of a merger,
consolidation, or acquisition involving the City or the sale of all or substantially all of the
assets of the City, other than in the ordinary course of business, the entry into a
definitive agreement to undertake such an action or the termination of a definitive
agreement relating to any such actions, other than pursuant to its terms, if material; and
(15) appointment of a successor or additional trustee or the change of name of a
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trustee, if material. For the purposes of the event identified in clause (13), the event is
considered to occur when any of the following occur: the appointment of a receiver,
fiscal agent or similar officer for the City in a proceeding under the U.S. Bankruptcy
Code or in any other proceeding under state or federal law in which a court or
governmental authority has assumed jurisdiction over substantially all of the assets or
business of the City, or if such jurisdiction has been assumed by leaving the existing
governing body and officials or officers in possession but subject to the supervision and
orders of a court or governmental authority, or the entry of an order confirming a plan or
reorganization, arrangement or liquidation by a court or governmental authority having
supervision or jurisdiction over substantially all of the assets or business of the City.
It is found and determined that the City has agreed to the undertakings contained
in this Section in order to assist participating underwriters of the 2013 Bonds and
brokers, dealers and municipal securities dealers in complying with Securities and
Exchange Commission Rule 15c2-12(b)(5) promulgated under the Securities Exchange
Act of 1934. The Director of Finance or his designee is authorized and directed to do
and perform, or cause to be done or performed, for or on behalf of the City, each and
every thing necessary to accomplish the undertakings of the City contained in this
Section for so long as Rule 15c2-12(b)(5) is applicable to the 2013 Bonds and the City
remains an “obligated person” under the Rule with respect to the 2013 Bonds.
The undertakings contained in this Section may be amended by the City upon a
change in circumstances that arises from a change in legal requirements, change in
law, or change in the identity, nature or status of the obligated person, or type of
business conducted, provided that (a) the undertaking, as amended, would have
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complied with the requirements of Rule 15c2-12(b)(5) at the time of the primary offering,
after taking into account any amendments or interpretations of the Rule, as well as any
change in circumstances and (b) in the opinion of nationally recognized bond counsel
selected by the City, the amendment does not materially impair the interests of the
beneficial owners of the 2013 Bonds.
Section 21. Bond Registrar. The City covenants that it shall at all times retain
a bond registrar with respect to the 2013 Bonds, that it will maintain at the designated
office of such bond registrar a place where 2013 Bonds may be presented for payment
and registration of transfer or exchange and that it shall require that the bond registrar
maintain proper registration books and perform the other duties and obligations
imposed upon the bond registrar by this ordinance in a manner consistent with the
standards, customs and practices of the municipal securities business.
The bond registrar shall signify its acceptance of the duties and obligations
imposed upon it by this ordinance by executing the certificate of authentication on any
2013 Bond, and by such execution the bond registrar shall be deemed to have certified
to the City that it has all requisite power to accept, and has accepted such duties and
obligations not only with respect to the 2013 Bond so authenticated but with respect to
all the 2013 Bonds. The bond registrar is the agent of the City and shall not be liable in
connection with the performance of its duties except for its own negligence or default.
The bond registrar shall, however, be responsible for any representation in its certificate
of authentication on the 2013 Bonds.
The City may remove the bond registrar at any time. In case at any time the
bond registrar shall resign or shall be removed or shall become incapable of acting, or
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shall be adjudged a bankrupt or insolvent, or if a receiver, liquidator or conservator of
the bond registrar, or of its property, shall be appointed, or if any public officer shall take
charge or control of the bond registrar or of its property or affairs, the City covenants
and agrees that it will thereupon appoint a successor bond registrar. The City shall mail
notice of any such appointment made by it to each registered owner of 2013 Bonds
within twenty days after such appointment.
Section 22. Book-Entry System. In order to provide for the initial issuance of
the 2013 Bonds in a form that provides for a system of book-entry only transfers, the
ownership of one fully registered 2013 Bond for each maturity, in the aggregate
principal amount of such maturity, shall be registered in the name of Cede & Co., as a
nominee of The Depository Trust Company, as securities depository for the 2013
Bonds. The Director of Finance is authorized to execute and deliver on behalf of the
City such letters to, or agreements with, the securities depository as shall be necessary
to effectuate such book-entry system.
In case at any time the securities depository shall resign or shall become
incapable of acting, then the City shall appoint a successor securities depository to
provide a system of book-entry only transfers for the 2013 Bonds, by written notice to
the predecessor securities depository directing it to notify its participants (those persons
for whom the securities depository holds securities) of the appointment of a successor
securities depository.
If the system of book-entry only transfers for the 2013 Bonds is discontinued,
then the City shall issue and the bond registrar shall authenticate, register and deliver to
the beneficial owners of the 2013 Bonds, bond certificates in replacement of such
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beneficial owners’ beneficial interests in the 2013 Bonds, all as shown in the records
maintained by the securities depository.
Section 23. Defeasance and Payment of Bonds. (A) If the City shall pay or
cause to be paid to the registered owners of the 2013 Bonds, the principal, and interest
due or to become due thereon, at the times and in the manner stipulated therein and in
this ordinance, then the pledge of taxes, securities and funds hereby pledged and the
covenants, agreements and other obligations of the City to the registered owners a nd
the beneficial owners of the 2013 Bonds shall be discharged and satisfied.
(B) Any 2013 Bonds or interest installments appertaining thereto, whether at
or prior to the maturity or the redemption date of such 2013 Bonds, shall be deemed to
have been paid within the meaning of paragraph (A) of this Section if (1) in case any
such 2013 Bonds are to be redeemed prior to the maturity thereof, there shall have
been taken all action necessary to call such 2013 Bonds for redemption and notice of
such redemption shall have been duly given or provision shall have been made for the
giving of such notice, and (2) there shall have been deposited in trust with a bank, trust
company or national banking association acting as fiduciary for such purpose either
(i) moneys in an amount which shall be sufficient, or (ii) “Federal Obligations” as defined
in paragraph (C) of this Section, the principal of and the interest on which when due will
provide moneys which, together with any moneys on deposit with such fiduciary at the
same time for such purpose, shall be sufficient, to pay when due the principal of and
interest due and to become due on said 2013 Bonds on and prior to the applicable
redemption date or maturity date thereof.
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(C) As used in this Section, the term “Federal Obligations” means (i) non-
callable, direct obligations of the United States of America, (ii) non-callable and non-
prepayable, direct obligations of any agency of the United States of America, which are
unconditionally guaranteed by the United States of America as to full and timely
payment of principal and interest, (iii) non-callable, non-prepayable coupons or interest
installments from the securities described in clause (i) or clause (ii) of this paragraph,
which are stripped pursuant to programs of the Department of the Treasury of the
United States of America, or (iv) coupons or interest installments stripped from bonds of
the Resolution Funding Corporation.
Section 24. Ordinance to Constitute a Contract. The provisions of this
ordinance shall constitute a contract between the City and the registered owners of the
2013 Bonds. Any pledge made in this ordinance and the provisions, covenants and
agreements herein set forth to be performed by or on behalf of the City shall be for the
equal benefit, protection and security of the owners of any and all of the 2013 Bonds.
All of the 2013 Bonds, regardless of the time or times of their issuance, shall be of equal
rank without preference, priority or distinction of any of the 2013 Bonds over any other
thereof except as expressly provided in or pursuant to this ordinance. This ordinance
shall constitute full authority for the issuance of the 2013 Bonds and to the extent that
the provisions of this ordinance conflict with the provisions of any other ordinance or
resolution of the City, the provisions of this ordinance shall control. If any section,
paragraph or provision of this ordinance shall be held to be invalid or unenforceable for
any reason, the invalidity or unenforceability of such section, paragraph or provision
shall not affect any of the remaining provisions of this ordinance.
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List Names
In this ordinance, reference to an officer of the City includes any person holding
that office on an interim basis and any person delegated the authority to act on behalf of
such officer.
Section 25. Publication. The City Clerk is hereby authorized and directed to
publish this ordinance in pamphlet form and to file copies thereof for public inspection in
his office.
Section 26. Effective Date. This ordinance shall become effective upon its
passage and approval.
Passed and adopted this 16th day of September, 2013, by roll call vote as
follows:
Ayes:
Nays:
Approved: September 16, 2013
________________________________
Mayor
Published in pamphlet form: September 17, 2013
(SEAL)
Attest:
________________________________
City Clerk
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CHI02_61088468v1_212856-00016 8/9/2013 11:45 AM
CERTIFICATE
I, Robert R. Kiely, Jr., City Clerk of The City of Lake Forest, Illinois, hereby certify
that the foregoing ordinance entitled: “Ordinance Authorizing the Issuance of General
Obligation Refunding Bonds, Series 2013, of The City of Lake Forest, Illinois,” is a true
copy of an original ordinance that was duly passed and adopted by the recorded
affirmative votes of a majority of the members of the City Council of the City at a
meeting thereof that was duly called and held at 7:30 p.m. on September 16, 2013, in
the Council Chambers at City Hall, 220 East Deerpath, and at which a quorum was
present and acting throughout, and that said copy has been compared by me with the
original ordinance signed by the Mayor on September 16, 2013, and thereafter
published in pamphlet form on September 17, 2013 and recorded in the Ordinance
Book of the City and that it is a correct transcript thereof and of the whole of said
ordinance, and that said ordinance has not been altered, amended, repealed or
revoked, but is in full force and effect.
I further certify that the agenda for said meeting included the ordinance as a
matter to be considered at the meeting and that said agenda was posted at least
48 hours in advance of the holding of the meeting in the manner required by the Open
Meetings Act, 5 Illinois Compiled Statutes 120, and was continuously available for
public review during the 48 hour period preceding the meeting.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of
the City, this ________ day of September, 2013.
________________________________
City Clerk
(SEAL)
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