CITY COUNCIL 2014/11/03 Agenda
THE CITY OF LAKE FOREST
CITY COUNCIL AGENDA
Monday, November 3, 2014
6:30 p.m.
City Hall Council Chambers
Honorable Mayor, Donald Schoenheider
Catherine Waldeck, Alderman First Ward Stanford Tack, Alderman Third Ward
Prudence R. Beidler, Alderman First Ward Jack Reisenberg, Alderman Third Ward
David Moore, Alderman Second Ward Michael Adelman, Alderman Fourth Ward
George Pandaleon, Alderman Second Ward Michelle Moreno, Alderman Fourth Ward
CALL TO ORDER AND ROLL CALL 6:30 p.m.
PLEDGE OF ALLEGIANCE
REPORTS OF CITY OFFICERS
1. COMMENTS BY MAYOR
A. Swear in New Police Officers-
David Miniscalco, Aaron Kruchko and Erik Blomberg
-Mayor Schoenheider and James Held, Chief of Police
B. 2014-2015 New Board and Commission Appointments/Reappointments
SENIOR RESOURCE COMMISSION
NAME OF MEMBER APPOINT/REAPPOINT WARD
Nancy Carey Re-Appoint 4
HOUSING TRUST FUND BOARD
NAME OF MEMBER APPOINT/REAPPOINT WARD
Tom Grant Appoint (Senior Resource)
Lori Sundberg Appoint (Local Business/Institution)
PARKS & RECREATION BOARD
NAME OF MEMBER APPOINT/REAPPOINT WARD
Steve Reimer Appoint 4
A copy of the volunteer profile sheets begin on page 10.
COUNCIL ACTION: Approve the Mayor’s Appointments
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November 3, 2014 City Council Agenda
C. Appointment of City Representative and Public Member for TIF Joint Review
Board (Proposed TIF District for Laurel/Western Redevelopment Project
Area).
JOINT REVIEW BOARD
NAME OF MEMBER APPOINT Sector
TBD Appoint City Representative
TBD Appoint Public Member
COUNCIL ACTION: Approve the Mayor’s Appointments
2. COMMENTS BY CITY MANAGER
A. Community Spotlight
Lake Forest Open Lands
- John Sentell, President
3. COMMENTS BY COUNCIL MEMBERS
A. Audit Committee Report
Fiscal Year 2014 Annual Financial Report
PRESENTED BY: Lucinda Baier, Audit Committee Chairman
STAFF CONTACT: Elizabeth Holleb, Finance Director (847-810-3612)
PURPOSE AND ACTION REQUESTED: Staff requests receipt of the audit report for the fiscal
year ended April 30, 2014.
BACKGROUND/DISCUSSION: The Comprehensive Annual Financial Report (CAFR) for the
fiscal year ended April 30, 2014 is provided in your packet beginning on page 18. A
bound copy of the CAFR will be delivered to the City Council under separate cover. The
document has been reviewed by the Audit Committee with McGladrey LLP, the City’s
independent audit firm, and has been accepted by the Audit Committee. The City has
received an unmodified opinion from McGladrey LLP.
The City has been awarded the Certificate of Achievement for Excellence in Financial
Reporting from the Government Finance Officers Association for thirty-five consecutive
years. This year’s report will be submitted to GFOA for consideration of a thirty-sixth
award.
The Audit Committee met four times in 2014 and highlights of those meetings as well as
the audit report will be presented this evening by Audit Committee Chairman Baier.
COUNCIL ACTION: Receipt of the audit report for the fiscal year ended April 30, 2014.
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4. OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA
ITEMS
5. ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approval of the October 20, 2014 City Council meeting Minutes
A copy of the minutes can be found beginning on page 197.
2. Check Register for period September 27- October 24, 2014
Fund Invoice Payroll Total
General 640,937 1,066,131 1,707,068
Water & Sewer 71,612 108,454 180,066
Parks & Recreation 154,785 298,431 453,215
Capital Improvements 243,285 0 243,285
Motor Fuel Tax 202,177 0 202,177
Cemetery 12,065 16,199 28,265
Senior Resources 6,526 20,476 27,002
Deerpath Golf Course 34,061 39,204 73,265
Fleet 79,621 40,002 119,622
Debt Funds 750 0 750
Housing Trust 0 0 0
Park & Public Land 21,952 0 21,952
All other Funds 385,786 139,456 525,242
$ 1,853,557 $ 1,728,353 $ 3,581,910
3. Determination of an Estimate of the Amount of Revenue to be generated
from Property Taxes for the 2014 Calendar Year in Accordance with the
Truth in Taxation Statute and Establishment of a Public Hearing Date for the
2014 Tax Levy (if Required)
STAFF CONTACT: Elizabeth Holleb, Finance Director (847-810-3612)
PURPOSE AND ACTION REQUESTED: Staff requests City Council approval of a non-binding
estimate of the amount of revenue to be generated from property taxes in calendar year
2014 and setting of a public hearing date if this estimate exceeds 105% of the prior year’s
tax extension in accordance with State Statutes.
BACKGROUND/DISCUSSION: Under the Truth in Taxation Act, the City Council is required
to determine the estimated amount of money to be raised by taxation twenty (20) days
prior to the adoption of the annual tax levy. The amount determined is an estimate, and
may be increased or decreased under the statute, provided that any increase does not
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November 3, 2014 City Council Agenda
exceed 105% of the prior year’s tax extension without the required notice and public
hearing. This estimate is preliminary and initiates the public process for the 2014 tax levy
by establishing an estimated amount from which staff can prepare a proposed levy
ordinance. The tax levy ordinance will be considered by the City Council on November
17 and again on December 1, 2014.
The 2014 property tax levy estimate is as follows:
Levy 2013 Extended 2014 Levy Estimate % Increase (Decr.)
Aggregate Levy $ 26,141,150 $ 26,652,260 1.96%
Debt Service Levy 1,983,122 2,001,279 .92%
TOTAL LEVY $ 28,124,272 $ 28,653,539 1.88%
The increase in the aggregate levy is comprised of the 1.50% overall increase in
compliance with the tax cap applicable to 2014 levies under the Property Tax Extension
Limitation Law (PTELL) and an increase due to new construction as estimated by the Lake
County Assessor’s Office.
The total levy as estimated above would result in a $49 increase in the tax bill of an
average home ($800,000 market value). No public hearing would be required under the
Truth in Taxation Act.
COUNCIL ACTION: Determination of an Estimate of the Amount of Revenue to be
generated from Property Taxes for the 2014 Calendar Year in Accordance with the Truth
in Taxation Statute.
4. Award of Bid for the Stuart Room Window Replacement at Gorton
Community Center Included in the F.Y. 2015 CIP Budget
STAFF CONTACT: DAN MARTIN, SUPERINTENDENT OF PUBLIC WORKS
(847-810-3561)
PURPOSE AND ACTION REQUESTED: Staff is requesting City Council authorization to award
the bid for the Stuart Room Window Replacement to Bulley & Andrews as part of the
Gorton Renovation Project. The replacement of the Stuart Room windows is included in
the F.Y. 2015 CIP under Gorton Capital Maintenance. Due to the timing of the Gorton
Renovation Project, the opportunity presented itself to include the smaller window project
with the larger renovation project and achieve greater competitive pricing.
BACKGROUND/DISCUSSION: In 1985 the Stuart Community Room addition was built on
the northwest side of the main Gorton building. As part of the process, eight of the
original building’s north exterior double hung windows were re-purposed as part of the
addition. Over the past 29 years, the original wood windows have had many issues
including severe wood rot, glazing failure, and broken counterweights. The wood rot was
so aggressive at one point that aluminum cladding and caulk was used to cover the
sashes.
The proposed replacement windows will match the same style and type of aluminum
framed, double pane windows that were approved for the large two story addition built
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November 3, 2014 City Council Agenda
as part of Gorton’s last major renovation completed in the year 2000. The new windows
will reduce maintenance costs, increase energy efficiency and decrease noise levels.
BUDGET/FISCAL IMPACT: During the process of bidding out the Gorton Renovation
Project, Gorton’s architectural team pre-qualified the three contractors below and Bulley
& Andrews was the lowest qualified bidder for both the Gorton Renovation Project and
the smaller Stuart Room Window Replacement.
On October 6, 2015, staff received the following bids for this project.
Company Bid Amount
Bulley & Andrews $33,157.00
Altounian Builders $34,356.00
WB Olson $48,907.00
Prior to accepting the contract, Bulley & Andrews hired the Kinsale Contracting Group
Inc. to perform an Asbestos and Lead Audit of the affected areas of the building. The
existing windows in the Stuart Community Room were found to contain lead paint and
will need to be abated at an additional cost of $10,000.00. Bringing the total cost of the
window replacements to $43,157.00
FY2015
Funding
Source
Account Budget Amount
Requested
Budgeted?
Y/N
CIP $64,000 $43,157.00 Y
COUNCIL ACTION: Award of bid to Bulley & Andrews. in the amount of $43,157.00. In
addition, staff is requesting a 5% or $2,158 contingency for any unforeseen problems
during the project.
5. Consideration of an Ordinance Approving a Recommendation from the
Historic Preservation Commission. (First Reading and if Desired by the City
Council, Final Approval)
STAFF CONTACT: Catherine Czerniak,
Director of Community Development (810-3504)
The following recommendation from the Historic Preservation Commission is presented to the
City Council for consideration as part of the Omnibus Agenda.
575 E. Westminster - The Historic Preservation Commission recommended approval of the
addition of a screen porch in the location of an existing terrace at the rear of the residence, a
building scale variance and hardscape modifications to the front entrance. The Commission
found that the project complies with the design standards and satisfies the criteria for a
building scale variance. Letters from neighboring property owners were received in support of
the project. (Commission vote: 6-0, approved)
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November 3, 2014 City Council Agenda
The ordinance approving the petition with conditions of approval as recommended by the
Historic Preservation Commission, with key exhibits attached, is included in the Council’s packet
beginning on page 206. The Ordinance and complete exhibits are available for review in the
Community Development Department.
COUNCIL ACTION: If determined to be appropriate by the City Council, waive first
reading and grant final approval of the Ordinance approving the petition in accordance
with the Historic Preservation Commission’s recommendation.
COUNCIL ACTION: Approve the five (5) Omnibus items as presented.
6. ORDINANCES
1. Consideration of Documents Relating to Corrective Action at 260 E. Illinois
Road, the Former Site of an Exxon Mobil Gas Station, to Address
Environmental Issues. (Waive First Reading and Grant Final Approval of an
Ordinance and Approve Resolution Authorizing Related Agreements)
PRESENTED BY: Victor Filippini, City Attorney
PURPOSE AND ACTION REQUESTED: Consistent with Council action in support of corrective
actions at other current and former gas station locations, Council approval of an
ordinance and a resolution authorizing approval of related Agreements are requested.
BACKGROUND/DISCUSSION: The City is working in cooperation with the property owner to
assure that environmental issues resulting from the previous use of the property at 260 E.
Illinois Road as a gas station are properly addressed. Because those environmental issues
include some migration of contaminants into the subsurface of the City rights-of-way, a
protocol for future excavations is needed in the event that certain excavation activities
occur in the affected rights-of-way in the future. Additionally, pursuant to State
requirements, Exxon Mobil requires the City to adopt a prohibition against the use of
groundwater as a potable water source in the affected areas. These are necessary steps
in preparing the property for redevelopment and they are in the best interest of the
health and safety of the community.
Two documents are presented for the Council’s consideration. The first is a resolution
approving a Highway Authority Agreement and a Supplemental Agreement; the
agreements set forth the respective obligations of Exxon Mobil for the clean-up of the
affected City right-of-way and the protocol in the event that certain excavation activities
are undertaken. The second action (which is only required if the agreements are
approved) is an Ordinance prohibiting the use of groundwater as a potable water
source.
The Ordinance, Resolution, and Agreements are included in the Council packet
beginning on page 214.
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November 3, 2014 City Council Agenda
COUNCIL ACTION: If determined to be appropriate by the City Council, (i) approve the
Resolution approving the Agreements and authorizing the Mayor and City Manager to
enter into Agreements relating to corrective action related to environmental conditions at
260 E. Illinois Road, and (ii) waive first reading of an Ordinance relating to Groundwater
and grant final approval of such ordinance.
2. Consideration of a Recommendation from the Plan Commission in Support
of Amendments to Chapter 46, Sections 37 and 38, Single Family Residence
Districts, to Permit “Granny Flats”, or Secondary Living Units, on Properties
Zoned for Single Family Use, Under Certain Conditions. (Approve First
Reading.)
STAFF CONTACT: Catherine Czerniak,
Director of Community Development (810-3504)
PURPOSE AND ACTION REQUESTED: Consideration of a recommendation from the Plan
Commission to amend the Code to permit “granny flats”, secondary living units, in the R-5
and R-4 residential zoning districts under certain conditions.
BACKGROUND/DISCUSSION: The term “Granny Flats” refers to the use of accessory
structures or outbuildings as secondary living units, rental units, on single family properties.
These types of units are also referred to as Coach Houses, Garage Apartments and
Cottages. Many of these existing accessory structures and outbuildings were originally
designed as secondary living units for domestic help on large estates.
In 2013, the City held a Community Engagement Forum, Chaired by Alderman David
Moore, to discuss the concept of secondary living units on single family properties. A
summary of the comments heard at the Forum was provided to the City Council and the
Council directed the Plan Commission to study the concept further. The Commission held
a work session to consider the topic and then held a public hearing which spanned the
course of two meetings.
After hearing public comment and after deliberations, the Plan Commission determined
that it would be in the community’s best interest to move forward with this concept, but
cautiously. The concerns heard and discussed by the Commission centered around the
potential for negative impacts on neighboring properties. To address that concern, the
Plan Commission is recommending conditions under which secondary living units would
be permitted. The conditions as recommended by the Commission establish a
framework that minimizes the likelihood of negative impacts on surrounding properties. In
summary, the key conditions:
Limit secondary living units to the R-4 and R-5 zoning districts, the districts with
larger lot sizes and the districts in which existing, historic accessory structures are
most commonly found.
Limit secondary living units to existing structures and outbuildings.
Require the main residence to be owner occupied.
Establish a minimum setback for secondary living units.
The Commission’s interest in this amendment was primarily twofold. First, secondary living
units on single family properties will provide more diversity in the housing types available
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November 3, 2014 City Council Agenda
in the community. Second, allowing the use of accessory structures and out buildings as
secondary living units could encourage investment in historic structures and in some of
the larger and more unique properties in the community. If secondary living units prove
to be successful and accepted by the community, future Code amendments could be
considered to expand this concept to properties in other zoning districts.
The Plan Commission voted 4 to 0 to recommend approval of a Code amendment to
permit secondary living units under certain conditions. The Ordinance, as recommended
by the Plan Commission, is included in the Council packet beginning on page 245.
COUNCIL ACTION: If determined to be appropriate by the City Council, approve first
reading of the Ordinance approving a Code amendment to permit secondary living units
in the R-4 and R-5 zoning districts under certain conditions.
7. NEW BUSINESS
8. ADDITIONAL ITEMS FOR COUNCIL DISCUSSION
EXECUTIVE SESSION pursuant to 5ILCS 120/2 (c), (5), The City Council will be discussing the
purchase or lease of real property for the use of the public body, including for the
purpose of discussing whether a particular parcel should be acquired and 5ILCS 120/2
(6), The City Council will be discussing the consideration for the sale or lease of property
owned by the Public Body, and 5ILCS 120/2 (21), semi-annual review of the minutes
mandated by Section 2.06 of the Open Meetings Act.
Adjournment into executive session
RECONVENE INTO REGULAR SESSION
1. Consideration of approval/ review of executive session minutes.
STAFF CONTACT: Margaret Boyer, Deputy City Clerk (847-810-3674)
PURPOSE AND ACTION REQUESTED: Staff requests approval and or review of executive
session minutes as mandated by Section 2.06 of the Open Meeting Act.
COUNCIL ACTION: Approval/review of executive session minutes
9. ADJOURNMENT 0:30 pm
Office of the City Manager October 29, 2014
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
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November 3, 2014 City Council Agenda
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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Comprehensive Annual
Financial Report
City of Lake Forest, Illinois
For the Year Ended April 30, 2014
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CITY OF LAKE FOREST, ILLINOIS
Comprehensive Annual Financial Report
Year Ended April 30, 2014
(With Independent Auditor’s Report Thereon)
Prepared by:
Department of Finance
Elizabeth Holleb
Finance Director
and
Diane Hall
Assistant Finance Director
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INTRODUCTORY SECTION
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CITY OF LAKE FOREST, ILLINOIS
Comprehensive Annual Financial Report
Year Ended April 30, 2014
Table of Contents
Exhibit Page
Introductory Section:
Table of Contents i-iv
Transmittal Letter v-x
Certificate of Achievement for Excellence in Financial Reporting xi
List of Principal Officials xii
Organizational Chart xiii
Financial Section:
Independent Auditor’s Report 1
Management’s Discussion and Analysis 3
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position A-1 16
Statement of Activities A-2 17
Fund Financial Statements:
Balance Sheet – Governmental Funds A-3 18
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position A-4 19
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds A-5 20
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Statement of
Activities A-6 21
Statement of Net Position – Proprietary Funds A-7 22
Statement of Revenues, Expenses, and Changes in Fund Net Position –
Proprietary Funds A-8 23
Statement of Cash Flows – Proprietary Funds A-9 24
Statement of Fiduciary Net Position A-10 26
Statement of Changes in Fiduciary Net Position A-11 27
Notes to Financial Statements 28
Required Supplementary Information:
Schedules of Revenues, Expenditures, and Changes in Fund Balance –
Budget and Actual:
General Fund B-1 62
Parks and Recreation Fund B-2 63
Illinois Municipal Retirement Fund – Schedules of Funding Progress B-3 64
Police and Firefighters’ Pension Funds:
Schedules of Funding Progress B-3 64
Schedules of Employer Contributions B-4 65
Other Post-Employment Benefits B-5 66
Note to Required Supplementary Information 67
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CITY OF LAKE FOREST, ILLINOIS
Comprehensive Annual Financial Report
Year Ended April 30, 2014
Table of Contents, Continued
Exhibit Page
Financial Section, Continued:
Other Supplementary Information:
Financial Schedules:
Other Governmental Funds:
Nonmajor Combining Balance Sheet C-1 68
Nonmajor Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances C-2 71
Schedules of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual:
Asset Forfeiture Fund C-3 74
Foreign Fire Insurance Tax Fund C-4 75
Emergency Telephone Fund C-5 76
Parks and Public Land Fund C-6 77
Motor Fuel Tax Fund C-7 78
General Cemetery Fund C-8 79
Senior Resources Commission Fund C-9 80
Housing Trust Fund C-10 81
Elawa Farm Fund C-11 82
Debt Service Fund C-12 83
Capital Improvements Fund C-13 84
Route 60 Bridge Improvements Fund C-14 85
Route 60 Intersection Improvements Fund C-15 86
Route 60 Fitzmorris Improvements Fund C-16 87
Major Enterprise Fund:
Schedule of Revenues, Expenses, and Nonoperating Revenues
(Expenses) - Budget and Actual (Budgetary Basis)
Waterworks and Sewerage Fund D-1 88
Nonmajor Enterprise Fund:
Schedule of Revenues, Expenses, and Nonoperating Revenues
(Expenses) – Budget and Actual (Budgetary Basis) -
Deerpath Golf Course Fund E-1 89
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CITY OF LAKE FOREST, ILLINOIS
Comprehensive Annual Financial Report
Year Ended April 30, 2014
Table of Contents, Continued
Exhibit Page
Financial Section, Continued:
Individual Major Fund Schedules, Combining Financial Statements and Other
Financial Schedules, Continued:
Internal Service Funds:
Combining Statement of Net Position F-1 90
Combining Statement of Revenues, Expenses, and Changes in Fund
Net Position F-2 91
Combining Statement of Cash Flows F-3 92
Schedule of Revenues, Expenses and Nonoperating Revenues –
Budget and Actual (Budgetary Basis)
Fleet Fund F-4 93
Self Insurance Fund F-5 94
Liability Insurance Fund F-6 95
Fiduciary Funds
Pension Trust Funds:
Combining Statement of Fiduciary Net Position G-1 96
Combining Statement of Changes in Fiduciary Net Position G-2 97
Statement of Changes in Assets and Liabilities – Agency Fund –
Special Assessment Fund G-3 98
Schedule of Changes in Fiduciary Net Position – Budget and Actual:
Police Pension Fund G-4 99
Firefighters’ Pension Fund G-5 100
Discretely Presented Component Unit – Lake Forest Library:
Statement of Net Position and General Fund Balance Sheet H-1 101
Statement of Activities and General Fund Statement of Revenues,
Expenditures, and Changes in Fund Balance H-2 102
Debt Service Schedules:
Summary of Debt Service Requirements to Maturity I-1 103
Debt Service Requirements to Maturity – General Obligation Bonds I-2 104
Special Service Area 25 Special Tax Bonds – 2003 Series I-3 108
Special Service Area 26 Special Tax Bonds – 2003 Series I-4 109
Special Service Area 29 Special Tax Bonds – 2004 Series I-5 110
General Obligation Bonds – 2008 Series I-6 111
General Obligation Bonds – 2009 Series I-7 112
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CITY OF LAKE FOREST, ILLINOIS
Comprehensive Annual Financial Report
Year Ended April 30, 2014
Table of Contents, Continued
Exhibit Page
Financial Section, Continued:
Individual Major Fund Schedules, Combining Financial Statements and Other
Financial Schedules, Continued:
Debt Service Schedules, Continued:
General Obligation Bonds – 2010 Series B I-8 113
General Obligation Bonds – 2010 Series C I-9 114
General Obligation Bonds – 2011 Series A I-10 115
General Obligation Bonds – 2011 Series B I-11 116
General Obligation Bonds – Series 2013 I-12 117
Combining Balance Sheet – Debt Service Fund I-13 118
Combining Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Debt Service Fund I-14 120
Statistical Section (Unaudited): Table Page
Net Position by Component – Last Ten Fiscal Years 1 122
Changes in Net Position – Last Ten Fiscal Years 2 124
Fund Balances of Governmental Funds – Last Ten Fiscal Years 3 128
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal
Years 4 129
Assessed Value and Actual Value of Taxable Property – Last Ten Levy
Years 5 131
Property Tax Rates – Direct and Overlapping Governments – Last Ten
Levy Years 6 132
Principal Property Taxpayers – Current Year and Nine Years Ago 7 133
Property Tax Levies and Collections – Last Ten Levy Years 8 134
Tax Extensions for City Funds – Last Ten Levy Years 9 135
Sales Tax Base and Number of Principal Payers – Taxable Sales by
Category – .5% Sales Tax – Last Ten Calendar Years 10 136
Sales Tax Base and Number of Principal Payers – Taxable Sales by
Category – 1% Sales Tax – Last Ten Calendar Years 11 137
Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years 12 138
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 13 139
Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years 14 140
Direct and Overlapping Governmental Activities Debt 15 141
Legal Debt Margin Information – Last Ten Fiscal Years 16 142
Pledged Revenue Coverage – Last Ten Fiscal Years 17 143
Demographic and Economic Information – Last Ten Fiscal Years 18 144
Principal Employers – Current Year and Nine Years Ago 19 145
Full-Time Equivalent Employees – Last Ten Fiscal Years 20 146
Operating Indicators – Last Ten Fiscal Years 21 147
Capital Asset Statistics – Last Ten Fiscal Years 22 150
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October 16, 2014
The Honorable Mayor Schoenheider
Members of the City Council
Members of the Audit Committee
Residents of the City of Lake Forest, Illinois
The Comprehensive Annual Financial Report of the City of Lake Forest (City) for the year ended April 30,
2014, is hereby submitted as mandated by both local ordinances and state statutes. These ordinances
and statutes require that the City issue annually a report on its financial position and activity presented in
conformance with accounting principles generally accepted in the United States of America (GAAP) and
audited in accordance with generally accepted auditing standards by an independent firm of certified
public accountants.
This report consists of management’s representations concerning the finances of the City of Lake Forest.
Consequently, management assumes full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these representations,
management of the City has established a comprehensive internal control framework that is designed
both to protect the government’s assets from loss, theft or misuse and to compile sufficient reliable
information for the preparation of the City of Lake Forest’s financial statements in conformity with GAAP.
Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute assurance
that the financial statements will be free from material misstatement. As management, we assert that, to
the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
The City of Lake Forest utilizes an independent Audit Committee for reviewing the audit process and to
report and make recommendations to the City Council. The Audit Committee members are Lake Forest
residents having expertise in the area of financial administration and auditing.
The City’s financial statements have been audited by McGladrey LLP a firm of licensed certified public
accountants. The goal of the independent audit is to provide reasonable assurance that the financial
statements of the City of Lake Forest for the fiscal year ended April 30, 2014, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the overall financial statement presentation.
The independent auditor concluded, based upon their audit, that there was a reasonable basis for
rendering an unmodified opinion that the City’s financial statements for the fiscal year ended April 30,
2014, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the
first component of the financial section of this report.
GAAP require that management provide a narrative introduction, overview, and analysis to accompany
the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter
of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s
MD&A is located immediately following the report of the independent auditors.
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Profile of The City of Lake Forest
The City of Lake Forest was incorporated as a city under a charter granted by the Illinois State
Legislature in 1861 and amended in 1869. Lake Forest is a residential community of 19,375 people and
has a land area of 17.18 square miles. It is situated on Lake Michigan, thirty miles north of downtown
Chicago in Lake County. In its American Community Survey, 2008-2012 estimates, the U.S. Census
Bureau reported the City had a median family income of $136,583 and median home value of $866,200,
significantly higher than comparable figures for Lake County and the State of Illinois.
The City adopted the Council-Manager form of government in 1956. Policy making and legislative authority
are vested in the City Council, which consists of a Mayor and an eight-member Council. The City Council is
responsible, among other things, for passing ordinances, adopting the budget, appointing committees and
hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and
ordinances of the City Council, for overseeing the day-to-day operations of the City, and for hiring the heads
of the City's departments. The Council members are elected to two-year staggered terms with three Council
members elected every two years. Aldermen serve a maximum of three terms. The Mayor is elected to a
two-year term and serves a maximum of two terms.
The City provides a full range of services, including police protection, fire protection, paramedic service,
refuse disposal, commuter parking, compost center, recreation center, senior center, community parks, golf
course, street maintenance, forestry, cemetery and a waterworks facility.
The financial reporting entity of The City of Lake Forest includes all City funds as well as its component unit,
the Lake Forest Library. Component units are legally separate entities for which the primary government is
financially accountable.
Each year the City of Lake Forest prepares an annual budget document. This plan contains the following
sections: the budget message, summary table of anticipated revenues and expenditures for the fiscal
year, operating budgets for each department, and the pay plan/personnel policies. The budget message
highlights the significant expenditure events that will occur and the objectives to accomplish these events.
It justifies the increases in capital expenditures and also lists the goals that are to be achieved during the
budget year.
While the annual municipal budget represents the City's financial plan for expenditures over the course of
the fiscal year, the annual Appropriation Ordinance is the formal legal mechanism by which the City
Council authorizes the actual expenditure of funds budgeted in the annual budget. It appropriates
specific sums of money by object and purpose of expenditure.
In addition, the Appropriation Ordinance provides for a 10% contingency in expenditures in an amount
above those actually budgeted. Each separate fund includes an item labeled contingency, with an
appropriate sum equivalent to 10% of the total funds budgeted. Even though there is a 10% contingency
line item, the City Council and City staff follow the adopted budget as its spending guideline and not the
Appropriation Ordinance. This practice has been followed for more than thirty years and has worked very
efficiently as a mechanism to address unanticipated items that may arise throughout the fiscal year.
Budget-to-actual comparisons are provided for each individual governmental fund for which an appropriated
annual budget has been adopted. For the General Fund and Parks and Recreation Fund, this comparison is
presented beginning on page 62 as required supplementary information as required by GASB Statement No.
34 for the General Fund and major special revenue funds. The Capital Improvements Fund, a major fund and
for non-major governmental funds with appropriated annual budgets, this comparison is presented in the
Other Supplementary Information section of this report, which starts on page 68.
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Factors Affecting Financial Condition
Local Economy. The City of Lake Forest, like all communities, is continuing to face challenges brought
on by the national economy but has developed mechanisms to mitigate the downturn. Statistically:
Unemployment levels in Lake Forest are well below the levels for Lake County and the State of
Illinois. For calendar year 2013, the City’s annual average unemployment rate was estimated to be
7.1%, compared to 8.7% for Lake County and 9.2% for the State of Illinois.
The consumer confidence index is closely monitored by economists because consumer spending
accounts for 70% of the United States’ economic activity. In August 2014, the index was 92.4, up
from 90.3 in July, and up significantly compared to 81.5 in August of 2013. The index remains
above 90, the minimum level associated with a healthy economy. An index above 100 signals
growth.
As revenues declined in recent years due to national
economic conditions, the City has proactively reduced
operating expenses to ensure a balanced budget and
compliance with the City’s fiscal policies. Since personnel
costs represent nearly 70% of the operating budget, it has
been necessary to achieve costs savings through reduced
personnel. In fiscal years (FY) 2009-2014, the City has
reduced budgeted full time employees by 31 positions,
returning the City’s total employee count below FY1992
levels. FY2015 budgeted full-time positions remained the
same as FY2014.
In February 2011, the City Council approved an organizational restructuring and Early Retirement
Incentive (ERI) program which is offered and regulated by the Illinois Municipal Retirement Fund (IMRF).
The State of Illinois passed a pension reform law effective January 1, 2011 which allows new hires
without previous IMRF participation to join a Tier 2 pension plan which costs 38% less than the current
plan. Twenty-six (26) employees participated in the ERI program, which is projected to generate net
savings of $4.5 million over the initial ten year period. The annual savings are being used to help balance
the General Fund’s annual budget through FY16 and to provide capital improvement funding. In
December 2012, the City Council approved the use of excess fund balance reserves to pay off the ERI
liability in its entirety, rather than amortizing over ten years as initially anticipated. This early payoff
allowed the City to avoid $1.8 million in interest costs over the amortization period.
Approximately half of the City’s General Fund revenues come from property taxes, which continue to be a
stable revenue source. The other major funding sources of sales tax, income tax, utility taxes and
building permit revenues met or exceeded the FY2014 budget estimates. However, these revenues
remain significantly lower than revenues received before the 2008 recession.
The financial condition of the State of Illinois continues to be a significant concern although the City has
limited reliance on the State for direct funding. The State continues to be behind in making payments to
the City for its share of the income tax, but legislation recently approved will minimize these delays in the
future. The City is vigilant in monitoring any legislation that may be introduced that could have a negative
impact on the City’s budget and would vigorously oppose such legislation.
In order to assist the business community and enhance sales tax revenues, economic development
initiatives are conducted through the Office of the City Manager. The City has enlisted the services of an
Economic Development Coordinator who acts as a liaison between the City, Lake Forest/Lake Bluff
Chamber of Commerce and the business districts in Lake Forest. The City is committed to attracting
desired businesses and to promote the viability of the business districts. More information can be found
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on the main page of the City’s website under Economic Development. In September 2013, Lake Forest
was proud to host the BMW Championship, which brought the top 70 professional golfers from around the
world to the City as part of the PGA Tour playoffs for the FedEx Cup. The City actively embraced the
event as a unique opportunity to market the community on an international stage. As testament to the
success of the event, it was recently announced that the BMW Championship will return to Lake Forest in
2015. More than 130,000 spectators attended the 2013 event.
In an effort to proactively address budgetary issues that may arise throughout the year, City staff monitors
revenues and expenses on a monthly basis. Monthly financial “flash” reports are provided to the City
Council Finance Committee. City staff prepares five-year fund balance reports for all significant funds
beginning in November and these are updated as necessary throughout the fiscal year.
In addition, the City follows the fiscal policy approved annually by the City Council. The Fiscal Policy is
designed to establish guidelines for the fiscal stability of the City and to provide guidelines for the City’s
chief executive officer, the City Manager. Effective fiscal policy:
Contributes significantly to the City’s ability to insulate itself from fiscal crisis,
Enhances short-term and long-term financial credit ability by helping to achieve the highest credit
and bond ratings possible,
Promotes long-term financial stability by establishing clear and consistent guidelines,
Directs attention to the total financial picture of the City rather than single issue areas,
Promotes the view of linking long-term financial planning with day-to-day operations, and
Provides the Council and the citizens a framework for measuring the fiscal impact of government
services against established fiscal parameters and guidelines.
In Fiscal Year 2014 the City Council adopted revisions to the Fiscal Policy effective for FY2015 to
establish fund balance targets for each City fund. Previously, a formal fund balance target had only been
designated for the General Fund. This change will ensure greater emphasis on maintaining healthy
reserves to address contingencies or unanticipated expenditures.
Long–Term Financial Planning. The City is funding infrastructure expenditures primarily with the real
estate transfer tax that was approved by a referendum. This real estate transfer tax is imposed on
residential and commercial real estate transactions. The transfer tax of $4.00 per $1,000 of value is
levied on the buyer of the real estate.
FY2014 real estate transfer tax revenue totaled $1.7 million. Significant fluctuations occur in this revenue
source due to changes in economic conditions, and more specifically the housing market. The City will
remain conservative in projecting this revenue source and in spending monies on capital projects.
A Public Works Committee which consists of three City Council members was created to oversee capital
improvement projects and programs. Annually in October, the Public Works Committee and city staff
finalize the draft of the Five Year Capital Improvement Program. This draft is discussed at a City Council
budget meeting, typically held in November.
The five-year fund balance forecasts prepared for major funds of the City each year as part of the budget
development process assist the City in identifying budget challenges on the horizon and ensure that a
proactive approach is taken to addressing these challenges.
In FY2014, the City Council and staff conducted a special long-term financial planning work session
focused on the General Fund, Capital Improvements Fund and Water Fund. These discussions resulted
in further deliberation and adoption of a new sanitation fee as well as restructuring of the water rates to
address long-term capital needs. Both of these revenue enhancements were effective May 1, 2014.
Pension Benefits. Escalating costs for employee pension benefits will continue to pose financial
challenges to the City. Sworn police and fire personnel receive retirement and disability benefits from the
Police Pension Fund and Firefighters’ Pension Fund, respectively. Both of these plans are defined
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ix
benefit, single-employer plans administered by boards of trustees. The defined benefits and employee
contribution levels are governed by Illinois Compiled Statutes and may only be amended by the Illinois
General Assembly. Police participants are required to contribute 9.91% of their base salaries and fire
participants are required to contribute 9.455% of their base salaries. The City is required to contribute the
remaining amounts necessary to finance each plan as determined by an independent actuary. As of April
30, 2014, the most recent actuarial valuation date, the funded ratio for the Police Pension Plan is 56.2%
and for the Firefighters’ Pension Plan is 76.3%.
All other employees of the City who work over 1,000 hours per year are covered by the Illinois Municipal
Retirement Fund (IMRF), a statewide pension plan. Benefit provisions and funding requirements are
established by State statutes and may only be changed by the Illinois General Assembly.
Employees participating are required to contribute 4.5% of their annual wages and the City is required to
contribute the remaining amounts necessary to fund the coverage of its employees in the plan. As of
December 31, 2013, the funded ratio for IMRF is 73.9%, excluding the actuarial accrued liability for
retirees which is 100% funded.
In early 2010, a bill was signed by the Governor with an effective date of January 1, 2011, approving a
"two-tier" system, where current employees keep their existing pension plans, but new hires will join a
less expensive new system. IMRF was included in the bill but not the Police and Firefighters’ pension
plans. By the end of 2010, the Illinois General Assembly approved police and firefighter pension reform
legislation effective January 1, 2011. The law does not affect the pensions of currently employed police
officers and firefighters - only those hired after January 1, 2011. Although little of the cost savings from
both bills will be seen immediately, it does provide the City long-term financial relief.
In anticipation of implementation of GASB Statement No. 67, Financial Reporting for Pension Plans, and
No. 68, Accounting and Financial Reporting for Pensions, the City has made adjustments to the mortality
table and interest rate assumptions for its police and fire pension fund actuarial valuations. These
changes have reduced the funded ratio but are intended to put the City in an even stronger position when
implementing the new standards in FY2015 and FY2016. These changes are in addition to historically
overfunding the annual pension cost as determined by the independent actuary.
Additional information on the City’s pension arrangements and other postemployment benefits may be
found in Note 9 of the financial statements.
Major Initiatives
The City is committed to maintaining the quality of life and the preservation of the character and heritage
of Lake Forest. The City must continue to adhere to its prudent financial management practices and
remain focused on sustaining long-term financial stability. For FY2014, the most significant initiatives
were as follows:
The City and Conway Farms Golf Club hosted the 2013 BMW Golf Tournament which was
recognized as the top professional golf tournament in 2013 and providing the City international
exposure.
The City collaborated with three neighboring communities in exploring operational service
enhancements and cost savings through central dispatching. Implementation of consolidated
dispatch will occur in FY2015 with projected annual savings exceeding $350,000 annually.
City staff worked with the Property and Public Land Committee to begin the process of selecting a
preferred developer to partner with the City in redeveloping the 10-acre Laurel Avenue site, the
previous location of the City’s municipal services facility. The preferred developer has recently been
announced and it is anticipated that construction will begin 2nd quarter 2015.
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The City launched a new website designed to provide easier access to information about City
programs.
Plan reviews and approvals have been completed for the Northwestern Lake Forest Hospital
expansion project, which will include construction of a brand new hospital facility.
Capital expenditures in Fiscal Year 2014 included street improvements ($1.9 million), Year 1 of the
Emerald Ash Borer tree removal and replacement program ($289,000), Phase 1 of the Forest Park
improvement project ($800,000), Route 60 beautification ($221,520), and Water/Sanitary Sewer
capital improvements ($1.5 million).
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence
in Financial Reporting to The City of Lake Forest for its comprehensive annual financial report for the fiscal
year ended April 30, 2013. This was the thirty-fifth (35th) consecutive year that The City of Lake Forest has
achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must
publish an easily readable and efficiently organized comprehensive annual financial report. This report must
satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
We would like to express our appreciation to all members of the Finance Department who assisted and
contributed to the preparation of this report. We would also like to thank the Mayor, members of the City
Council and the Audit Committee for their interest and support in planning and conducting the financial
operations of the City in a responsible and progressive manner.
Respectfully submitted,
Robert R. Kiely, Jr. Elizabeth A. Holleb
City Manager Finance Director
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xii
CITY OF LAKE FOREST, ILLINOIS
List of Principal Officials
Year Ended April 30, 2014
LEGISLATIVE
City Council
Donald P. Schoenheider, Mayor
George A. Pandaleon Stanford Tack
Kent E. Novit John Reisenberg
Catherine A. Waldeck Robert T. Palmer
David Moore Michael R. Adelman
AUDIT COMMITTEE
Michelle Moreno, Chairman
Lucinda Baier
Andrew Marwede
Amy Krebs
Andrew Logan
George A. Pandaleon, Alderman (ex-officio)
Donald P. Schoenheider, Mayor (ex-officio)
EXECUTIVE
Robert R. Kiely, Jr., City Manager
DEPARTMENT OF FINANCE
Elizabeth Holleb, Director of Finance
Diane Hall, Assistant Finance Director
32
xiii Mayor and City CouncilCROYACOMMUNITY DEVELOPMENT FINANCE/ITFIRE HUMAN RESOURCES PARKS/RECREATION POLICE PUBLIC WORKS SENIOR CENTERVoters and Citizens of The City of Lake Forest Appointed Boards/ Commissions/ CommitteesOffice of the City ManagerAudit CommitteeBoard of Fire and Police CommissionersBoard of Trustees‐Police Pension Fund Board of Trustees‐Firefighters' Pension FundBuilding Review BoardCemetery CommissionConstruction Codes CommissionCROYA BoardHistoric Preservation CommissionHousing Trust Fund BoardLegal CommitteeLibrary BoardParks and Recreation BoardPlan CommissionSenior Resources CommissionZoning Board of Appeals33
xiv
FINANCIAL SECTION
34
xv
Independent Auditor’s Report
35
1
Independent Auditor’s Report
Honorable Mayor, City Council,
and City Manager
City of Lake Forest, Illinois
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of Lake Forest, Illinois, as of and for the year ended April 30, 2014, and the related
notes to the financial statements, which collectively comprise the City’s basic financial statements as
listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of the City of
Lake Forest, Illinois, as of April 30, 2014, and the respective changes in financial position, and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
36
2
Emphasis of Matter
As discussed in Note 13 to the financial statements, during the year ended April 30, 2014 the City
implemented the provisions of GASB Statement No. 65, Items Previously Reported as Assets and
Liabilities, which required a restatement of opening net position of $259,530. Our opinion is not modified
with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis (pages 3 - 15), budgetary comparison information (pages 62 - 63), and pension
and OPEB information (pages 64 - 66) be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The Other Supplementary Information (pages 68 – 121),
the Introductory Section and the Statistical Section are presented for purposes of additional analysis and
are not a required part of the basic financial statements.
The Other Supplementary Information, consisting of combining and individual fund statements and
schedules, discretely presented component unit statements and debt service schedules, is the
responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the Other Supplementary Information is fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
The Introductory Section and Statistical Section have not been subjected to the auditing procedures
applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or
provide any assurance on them.
Schaumburg, Illinois
October 16, 2014
37
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2014
3
The City of Lake Forest’s (the City) management’s discussion and analysis is designed to (1) assist the
reader in focusing on significant financial issues, (2) provide an overview of the City’s financial activity,
(3) identify changes in the City’s financial position (its ability to address the next and subsequent year’s
challenges), (4) identify any material deviations from the financial plan (the approved budget), and (5) identify
individual fund issues or concerns.
Since the Management’s Discussion and Analysis (MD&A) is designed to focus on the current year’s
activities, resulting changes and currently known facts, please read it in conjunction with the Transmittal Letter
(beginning on page v) and the City’s financial statements (beginning on page 16).
Financial Highlights
The City’s net position increased by $.3 million during the fiscal year ending April 30, 2014 (FY14). The
governmental net position increased by nearly $309,000 and the business-type activities net position
increased by $23,000.
The governmental activities revenue decreased by $.4 million (< 1.0%) due primarily to the expiration of
a Tax Increment Financing (TIF) district in FY13, resulting in reduced property tax revenue. The
expenses decreased by $2.9 million (5.6%) due to a $2.6 million surplus distribution in FY13 related to
the termination of the West Lake Forest TIF district and $2.7 million paid from fund balance reserves in
FY13 to pay off the Early Retirement Incentive (ERI) program liability and avoid interest costs in future
years. The transfers were unchanged.
The business-type activities revenue decreased by $1.0 million and expenses decreased by $.7 million
due to weather conditions favorably impacting water sales and the ERI liability repayment in FY13. The
transfers were unchanged.
The total cost of all City programs decreased from $61.4 million in FY13 to $57.8 million in FY14 –
largely attributable to $5.3 million in one-time FY13 payments discussed above.
USING THE FINANCIAL SECTION OF THE
COMPREHENSIVE ANNUAL REPORT
The financial statement’s focus is on both the City as a whole (government-wide) and on the major individual
funds. Both perspectives (government-wide and major fund) allow the user to address relevant questions,
broaden a basis for comparison (year to year or government to government) and enhance the City’s
accountability.
Government-Wide Financial Statements
The government-wide financial statements (see pages 16-17) are designed to be corporate-like in that all
governmental and business-type activities are consolidated into columns which add to a total for the Primary
Government. The focus of the Statement of Net Position (the Unrestricted Net Position) is designed to be
similar to bottom line results for the City and its governmental and business-type activities. This statement
combines and consolidates governmental fund’s current financial resources (short-term spendable resources)
with capital assets and long term obligations using the accrual basis of accounting and economic resources
measurement focus.
The Statement of Activities (see page 17) is focused on both the gross and net cost of various activities
(including governmental and business-type), which are supported by the government’s general taxes and
other resources. This is intended to summarize and simplify the user’s analysis of the cost of various
governmental services and/or subsidy to various business-type activities.
The Governmental Activities reflect the City’s basic services, including highways and streets, sanitation,
culture and recreation, public safety and general government. Property taxes, sales tax, income taxes and
local utility taxes finance the majority of these services. The Business-type Activities reflect private sector
type operations (Waterworks and Sewerage, Golf) where the fee for service is intended to cover all or most of
the costs of operation, including depreciation.
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CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2014
4 (Continued)
Fund Financial Statements
Traditional users of governmental financial statements will find the Fund Financial Statements presentation
more familiar. The focus is on Major Funds, rather than fund types.
The Governmental Major Funds (see pages 18 and 20) presentation is presented on a sources and uses of
liquid resources basis. This is the manner in which the financial plan (the budget) is typically developed. The
flow and availability of liquid resources is a clear and appropriate focus of any analysis of a government.
Funds are established for various purposes and the Fund Financial Statement allows the demonstration of
sources and uses and/or budgeting compliance associated therewith.
The Fund Financial Statements also allow the government to address its Fiduciary Funds (Police Pension,
Firefighters’ Pension, Cemetery Trust, and Special Assessment Funds). While these Funds represent trust
responsibilities of the government, these assets are restricted in purpose and do not represent discretionary
assets of the government. Therefore, these assets are not presented as part of the Government-Wide
Financial Statements.
While the Business-type Activities column on the Business-type Fund Financial Statements (see pages 22 -
23) is essentially the same as the Business-type column on the Government-Wide Financial Statement, the
Governmental Major Funds Total column requires a reconciliation because of the different measurement
focus (current financial resources versus total economic resources) which is reflected on the page following
each statement (see pages 19 and 21). The flow of current financial resources will reflect debt proceeds and
inter-fund transfers as other financing sources as well as capital expenditures and debt principal payments as
expenditures. The reconciliation will eliminate these transactions and incorporate the capital assets and long-
term obligations (bonds and others) into the Governmental Activities column (in the Government-wide
statements).
Infrastructure Assets
Historically, a government’s largest group of assets (infrastructure – roads, bridges, storm sewers, etc.) were
not reported nor depreciated in governmental financial statements. Generally accepted accounting principles
now require that these assets be valued and reported within the Governmental Activities column of the
government-wide Statements. Additionally, the government must elect to either (1) depreciate these assets
over their estimated useful life or (2) develop a system of asset management designed to maintain the service
delivery potential to near perpetuity. If the government develops the asset management system (the modified
approach) which periodically (at least every third year) by category measures and demonstrates its
maintenance of locally established levels of service standards, the government may record its cost of
maintenance in lieu of depreciation. The City has chosen to depreciate assets over their useful life. If a road
project is considered maintenance – a recurring cost that does not extend the road’s original useful life or
expand its capacity – the cost of the project will be expensed. An “overlay” of a road will be considered
maintenance whereas a “rebuild” of a road will be capitalized.
39
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2014
5 (Continued)
GOVERNMENT-WIDE STATEMENT
Statement of Net Position
The City’s combined net position increased by $.3 million for FY14 – from $270.4 million (restated) to $270.7
million. The analysis following will look at net position and net expenses of governmental and business-type
activities separately. The total net position for the governmental activities increased by $.3 million from $224.5
million (restated) to $224.8 million. The business-type activities net position increased by $23,000 from
$45.879 million (restated) to $45.902 million. Table 1 reflects the condensed Statement of Net Position
compared to FY13 (as restated). Table 2 will focus on the changes in net position of the governmental and
business-type activities.
2014 2013 2014 2013 2014 2013
Current and Other Assets $73.5 $68.8 $10.8 $10.8 $84.3 $79.6
Capital Assets 220.0 224.6 54.8 56.5 274.8 281.1
Total Assets 293.5 293.4 65.6 67.3 359.1 360.7
Deferred Outflows 0.1 0.2 0.8 1.0 0.9 1.2
Long- Term Liabilities 38.0 39.3 19.7 21.6 57.7 60.9
Other Liabilities 6.6 6.3 0.8 0.8 58.6 7.1
Total Liabilities 44.6 45.6 20.5 22.4 65.1 68.0
Deferred Inflows 24.2 23.5 0.0 0.0 24.2 23.5
Net Position:
Net Investment in
Capital Assets 184.3 187.5 36.2 36.1 220.5 223.6
Restricted 16.8 16.1 0.0 0.0 16.8 16.1
Unrestricted 23.7 20.9 9.7 9.8 33.4 30.7
Total Net Position $224.8 $224.5 $45.9 $45.9 $270.7 $270.4
Activities Activities Government
Table 1
Governmental Business-Type Total Primary
Statement of Net Position
As of April 30 2014 and 2013
(in millions)
For more detailed information see the Statement of Net Position (page 16).
Normal Impacts
There are six basic (normal) transactions that will affect the comparability of the Statement of Net Position
summary presentation.
Net Results of Activities will impact (increase/decrease) current assets and unrestricted net position.
Borrowing for Capital will increase current assets and long-term debt.
Spending Borrowed Proceeds on New Capital will reduce current assets and increase capital assets. There is
a second impact, an increase in capital assets and an increase in related net debt which will not change the
net investment in capital assets.
Spending of Non-borrowed Current Assets on New Capital will (a) reduce current assets and increase capital
assets and (b) will reduce unrestricted net position and increase net investment in capital assets.
40
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2014
6 (Continued)
Principal Payment on Debt will (a) reduce current assets and reduce long-term debt; and (b) reduce
unrestricted net position and increase net investment in capital assets.
Reduction of Capital Assets through Depreciation will reduce capital assets and net investment in capital
assets.
Current Year Impacts
The City’s $.3 million increase in combined net position (which is the City’s bottom line) was the result of the
governmental activities net position increasing by $.3 million and the business-type activities net position
increasing by $23,000.
The governmental activities total assets increased by $.1 million and the governmental activities total liabilities
decreased by $1.0 million (2.2%). With the implementation of GASB Statement No. 65, Items Previously
Recorded as Assets and Liabilities, property taxes receivable previously reported as deferred revenue are
now shown as deferred inflows of resources and increased $.7 million. The change in total assets is small but
reflects a reduction in capital assets that occurred primarily due to depreciation on capital assets significantly
exceeding additions, offset by a similar increase in current and other assets due to an increase in cash and
investments. The decrease in total liabilities reflects the scheduled retirement of general obligation bonds, net
of the issuance of new debt to refund existing bonds. See additional information in the Debt Outstanding
section of the MD&A.
Net investment in capital assets decreased due to depreciation exceeding additions and unrestricted net
position increased by $2.8 million.
The net position of business-type activities increased by $23,000, from $45.879 million to $45.902 million.
The primary change in assets of the business-type activities was a decrease in capital assets due to
depreciation expense exceeding capital additions by $1.7 million.
Long-term liabilities decreased by $1.9 million due to scheduled maturities of debt obligations. The
unrestricted net position decreased from $9.8 million to $9.7 million. The majority of the unrestricted net
position can be used by the City to finance water and sewer operations. The City has a policy of maintaining
33% of revenue plus one year’s debt service plus $500,000 as a reserve in its water fund. The annual
operating cost for this program is approximately $6.9 million per year and interest expense on bonds is
$.6 million.
Changes in Net Position
The City’s combined change in net position was an increase of $.3 million from FY13. The City’s total
revenues decreased by $1.4 million due in large part to a TIF district expiring in FY13 resulting in reduced
property tax revenue. The City’s cost of all programs decreased by $3.6 million, largely attributable to one-
time payments in FY13 due to the termination of the TIF district and the early payoff of the ERI liability from
reserves.
The chart on the following page compares the revenue and expenses for the current and previous fiscal year.
41
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2014
7 (Continued)
2014 2013 2014 2013 2014 2013
REVENUE
Program Revenue
Charges for Services $10.8 $10.9 $8.9 $9.9 $19.7 $20.8
Grants and Contributions
Operating 1.1 1.8 1.1 1.8
Capital 0.8 0.0 0.8 0.0
General Revenue
Property Taxes 23.7 25.1 23.7 25.1
Other Taxes 12.1 10.7 12.1 10.7
Other 0.7 1.1 0.7 1.1
Total Revenue 49.2 49.6 8.9 9.9 58.1 59.5
EXPENSES
Governmental Activities
General Government 12.3 16.2 12.3 16.2
Highways and Streets 7.8 7.5 7.8 7.5
Sanitation 2.6 2.5 2.6 2.5
Culture and Recreation 10.4 10.4 10.4 10.4
Public Safety 14.4 13.7 14.4 13.7
Interest 1.3 1.4 1.3 1.4
Business-Type Activities
Water and Sewer 7.5 8.3 7.5 8.3
Golf 1.5 1.4 1.5 1.4
Total Expenses 48.8 51.7 9.0 9.7 57.8 61.4
Excess before Transfers 0.4 (2.1) (0.1) 0.2 0.3 (1.9)
Transfers In (out)(0.1) (0.1) 0.1 0.1 0.0 0.0
Change in Net Position 0.3 (2.2) 0.0 0.3 0.3 (1.9)
Net Position - Beginning*224.5 226.7 45.9 45.6 270.4 272.3
Net Position - Ending $224.8 $224.5 $45.9 $45.9 $270.7 $270.4
* Restated
Table 2
Governmental Business-Type Total Primary
Changes in Net Position
Government
For the Fiscal Year Ended April 30, 2014 and 2013
(in millions)
Activities Activities
* Net Position – Beginning is restated for implementation of GASB 65 (see Note 13 for detail).
42
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2014
8 (Continued)
43
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2014
9
44
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2014
10
Normal Impacts
There are eight basic impacts on revenues and expenses as reflected below.
Revenues
Economic Condition can reflect a declining, stable or growing economic environment and has a
substantial impact on state income, sales and utility tax revenue as well as public spending habits for
building permits, elective user fees and volumes of consumption.
Increase/Decrease in City approved rates – while certain tax rates are set by statute, the City Council has
authority to impose and periodically increase/decrease rates (water, sewer, building fees, etc.).
Changing Patterns in Intergovernmental and Grant Revenue (both recurring and non-recurring) – certain
recurring revenues (state shared revenues, etc.) may experience significant changes periodically while
non-recurring (or one-time) grants are less predictable and often distorting in their impact on year to year
comparisons.
Market Impacts on Investment income – investment income on the City’s investment portfolio may
fluctuate based on market conditions.
Expenses
Introduction of New Programs – within the functional expense categories (Public Safety, Highways and
Streets, General Government, etc.), individual programs may be added or deleted to meet changing
community needs.
Increase/Decrease in Authorized Personnel – changes in service demand may cause the City Council to
increase/decrease authorized staffing. Staffing costs (salary and related benefits) represent nearly 70%
of the City’s general fund operating costs.
Salary Increases (annual adjustments and merit) – the ability to attract and retain human and intellectual
resources requires the City to strive to approach a competitive salary range position in the marketplace.
Inflation – while overall inflation appears to be reasonably modest, the City is a major consumer of certain
commodities such as supplies, fuels and parts. Some functions may experience unusual commodity
specific increases.
Current Year Impacts
Governmental Activities
Revenue
For the fiscal year ended April 30, 2014, revenues from governmental activities totaled $49.2 million,
down from $49.6 compared to FY13. The single greatest factor resulting in the change between FY13
and FY14 was a $1.4 million decline in property tax revenues resulting from a Tax Increment Financing
(TIF) district expiring in FY13. Property tax revenue continues to be the City’s single largest revenue
source, contributing $23.7 million (48%) of governmental activities revenue.
Property tax revenues combined with sales tax, the local utility tax, shared state income tax and real
estate transfer tax revenues total $35.8 million and represent 70% of the total governmental activities
revenue.
The real estate transfer tax became effective July 5, 2006 with a 58% voter approval via referendum. The
tax is imposed upon buyers of any residential or commercial real estate at a rate of $4.00 per $1,000 of
value. The revenue is used strictly to improve the City’s infrastructure. The City’s 2013 equalized
assessed valuation decreased 5.2% to $2,253,547,404. Although the City became a home rule
45
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2014
11
municipality in November 2004, the City still follows the Illinois Property Tax Extension Limitation Laws
(PTELL), otherwise known as the tax cap.
Investment income increased by $0.2 million ($0.5 million to $0.7 million). The City’s strategy for
investing did not change.
Expenses
For the fiscal year ended April 30, 2014, expenses for governmental activities totaled $48.8 million, a
decrease of $2.9 million. This decrease is due to two one-time events occurring in FY13 reported as
General Government expenses and resulting in the $3.9 million decrease in this category. First, the City
terminated the West Lake Forest TIF district resulting in a $2.6 million surplus distribution to impacted
taxing districts. Second, the City elected to use fund balance reserves to pay off its liability associated
with the Early Retirement Incentive (ERI) program, thereby avoiding future interest costs. Overall, the
City has experienced a reduction in personnel expenses as a result of reducing headcount. The ERI
program has allowed for a reduction in the number of personnel, as well as the replacement of long-
tenured personnel with new employees that have lower salaries and lower cost pensions due to the two-
tier pension system.
The City’s highways and streets expense category increased by $.3 million (4%) while sanitation
expenses increased $.1 million (4%) and public safety expenses increased $.7 million (5%). All of these
increases were due to personnel cost increases.
With high demand for skilled employees in both the public and private sectors in this region, it is important
that the City provide competitive compensation levels for our employees. The FY14 expenses included
funding for the City’s performance based employee compensation package plus a 2.5% general salary
adjustment.
Business-type Activities
Revenue
Total revenue for the business-type activities decreased by $1.0 million due to weather conditions
favorably impacting water sales in FY13.
Expenses
The City’s business-type activity expenses decreased by $.7 million or 7%. The decrease occurred in the
water fund due to its portion of the ERI liability repayment in FY13.
46
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2014
12
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds
At April 30, 2014, the governmental funds (as presented on the balance sheet on page 18) reported a
combined fund balance of $35.2 million which is a 10% increase from the beginning of the year
($32.0 million). Of the total fund balance of $35.2 million, $33.0 million is available for continuing City
services and capital projects. The unassigned fund balance of the General Fund at April 30, 2014 is
$14.5 million, which is a $3.5 million (31.8%) increase over the prior year.
Major Governmental Funds
The General Fund is the City’s primary operating fund and the largest source of day-to-day service
delivery. The total Fund Balance of the General Fund increased by $2.9 million or 19.4% from FY13
($14.7 million to $17.6 million). The General Fund revenues increased by $.9 million (2.9%) and the
expenditures decreased by $.8 million (2.8%) due to the early payoff of the ERI liability in FY13.
Excluding this one-time payment, expenditures increased by $1.1 million (4%) compared to the prior year,
largely driven by personnel cost increases. The excess of revenues over expenditures (before transfers)
for FY14 of $5.2 million compared favorably to the $3.4 million in FY13. The other financing sources
(uses) decreased by $0.1 million from $(2.4) million to $(2.3) million.
Primary revenue fluctuations between FY13 and FY14 were increases in property taxes and charges for
services. Although the City became a home rule unit in November 2004, the City still follows the Illinois
Property Tax Extension Limitation Laws (PTELL), otherwise known as the tax cap. The 2012 levy
extension (FY14 revenue) allowed for a 3.0% CPI factor as well as new equalized assessed valuation
growth. Due to the expiration of the TIF district in FY13, the City received additional property tax revenue
as those properties were returned to the tax rolls.
Excluding the impact of the ERI payoff in FY13, General Fund expenditures increased overall due to
personnel cost increases. General government increased 3.3%, highways and streets increased 15%
due to increased salt purchases due to winter conditions, sanitation was unchanged and public safety
costs increased 3.7%.
Original Final
General Fund Budget Budget Actual
Revenues:
Taxes $25.7 $25.7 $26.3
Other 6.2 6.2 6.7
Total 31.9 31.9 33.0
Expenditures and Transfers:
Expenditures 32.2 32.2 27.8
Transfers (Net)2.3 2.3 2.3
Total 34.5 34.5 30.1
Change in Fund Balance ($2.6)($2.6)$2.9
General Fund Budgetary Highlights
(in millions)
Table 3
Actual General Fund revenues were higher than the original budgeted revenues by $1.1 million during
FY14. This increase is mainly due to increased sales tax revenues and other taxes such as income and
utility taxes. Actual General Fund expenditures were lower than the original and final budget by
$4.4 million as it is the City’s policy to add 10%, which is $3.1 million, of contingency funding to the
budget appropriation. The contingency amount is only for emergency use and was not used in FY14.
47
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2014
13
More information can be found on the schedule of revenues, expenditures and changes in fund balance –
budget and actual on page 62.
The Parks and Recreation Fund accounts for the parks and recreation programs. Services include
forestry and parks maintenance operations, a fitness center, dance academy, and a variety of other
indoor and outdoor programs. The Fund Balance of the Parks and Recreation Fund increased by $0.3
million from $2.5 million to $2.8 million. The Parks and Recreation Fund revenues increased by $.1
million (1.6%) while expenditures decreased by $.7 million (7.7%). The decrease in expenditures was
attributable to the Parks portion of the early payoff of the ERI liability in FY13. The excess of revenues
over expenditures increased from $(729,000) to $88,000 attributable to the $.8 million ERI payment.
The Capital Improvements Fund is reported as a Major Fund for FY14 and is used to account for
revenues used to fund City building and infrastructure projects. Fund balance of this fund increased by
$.2 million to $4.1 million, with revenue increasing by $.3 million due to increased real estate transfer tax
revenue and expenditures increasing $1.3 million due to increased capital outlay.
CAPITAL ASSETS
2014 2013 2014 2013 2014 2013
Land and Improvements $45.3 $45.5 $0.5 $0.5 $45.8 $46.0
Infrastructure - Land 66.7 66.7 0.0 0.0 66.7 66.7
Construction in Progress 0.0 0.0 0.9 0.0 0.9 0.0
Infrastructure 62.6 64.7 0.0 0.0 62.6 64.7
Buildings 21.6 22.3 15.4 16.4 37.0 38.7
Improvements 19.6 20.8 22.2 23.1 41.8 43.9
Machinery and Equipment 4.2 4.6 1.9 2.0 6.1 6.6
Sanitary Sewers 0.0 0.0 14.0 14.5 14.0 14.5
Total $220.0 $224.6 $54.9 $56.5 $274.9 $281.1
Table 4
Governmental Business-Type Total Primary
Activities Activities Government
Capital Assets at Year End
Net of Depreciation
(in millions)
At the end of FY14, the City had a combined total of $274.9 million invested in a broad range of capital
assets. This amount represents a net decrease (including additions and deductions) of $6.2 million. The
net decrease is attributable to a $4.6 million decrease in governmental activities and a $1.6 million
decrease in the business-type activities.
The $4.6 million decrease in the governmental activities was primarily due to $6.2 million of depreciation
offset by $1.8 million of capital asset additions. The $1.6 million decrease in business-type activities was
primarily due to $2.8 million of depreciation offset by $1.2 million in asset additions (largely construction in
progress).
48
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2014
14
The following reconciliation summarizes the changes in Capital Assets which are presented in detail on
pages 45-47 of the Notes.
Governmental Business-Type
Activities Activities Total
Beginning Balance $224.6 $56.5 $281.1
Additions
Depreciable 1.7 0.3 2.0
Non-Depreciable 0.0 0.0 0.0
Construction in Progress 0.1 0.9 1.0
Retirements
Depreciable (0.3) (0.1) (0.4)
Non-Depreciable (0.2) 0.0 (0.2)
Construction in Progress
Depreciation (6.2) (2.8) (9.0)
Retirements 0.3 0.1 0.4
Ending Balance $220.0 $54.9 $274.9
Table 5
Change in Capital Assets
(in millions)
Debt Outstanding
The City had $55.1 million of general obligation bonds outstanding at April 30, 2014. Of this amount
$31.1 million were payable from property taxes and the remainder were self-supporting. The City abates
the property tax levies for these debt issues annually.
The City’s per capita debt ratio for all direct and overlapping debt with other governmental units was
$7,229 and $5,990 if self-supporting debt is excluded.
The City operated as a home rule community for FY14. The City was granted home rule status via a
referendum held on November 2, 2004. Under home rule authority, the City will not have a legal debt
limit. For more detailed information on long-term debt activity, see pages 48-50.
In FY14, the City issued $9.715 million of General Obligation Refunding Bonds in order to fully refund the
$9,665,000 Series 2010A issue. Details regarding the refunding issue may be found on page 50.
49
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2014
15
Economic Factors
Unemployment levels in Lake Forest are well below the levels for Lake County and the State of Illinois.
For calendar year 2013, the City’s annual average unemployment rate was estimated to be 7.1%,
compared to 8.7% for Lake County and 9.2% for the State of Illinois.
The City maintains a Aaa bond rating from Moody’s Investors Service.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, customers, investors and creditors with a general
overview of the City’s finances and to demonstrate the City’s accountability for the money it receives.
Questions concerning this report or requests for additional financial information should be directed to
Elizabeth Holleb, Finance Director, City of Lake Forest, 800 N. Field Drive, Lake Forest, IL 60045.
50
BASIC FINANCIAL STATEMENTS
51
16
CITY OF LAKE FOREST, ILLINOIS Exhibit A-1
Statement of Net Position
April 30, 2014
Component
Primary Government unit
Governmental Business-type Lake Forest
Activities Activities Total Library
Assets
Cash and cash equivalents 36,993,159 $ 9,057,923 $ 46,051,082 $ 1,530,394 $
Investments 4,074,228 - 4,074,228 -
Receivables (net):
Property taxes 24,193,594 - 24,193,594 3,751,395
Other taxes 488,656 - 488,656 5,512
Accounts 778,016 1,018,720 1,796,736 -
Loans 1,504,421 - 1,504,421 -
Other 763,686 184 763,870 -
Due from other governments 1,861,326 - 1,861,326 -
Internal balances (189,922) 189,922 - -
Inventories 413,082 89,479 502,561 -
Prepaids 585,715 359,710 945,425 5,190
Net pension asset 1,997,994 - 1,997,994 -
Capital assets:
Not being depreciated 112,097,527 1,381,180 113,478,707 359,066
Being depreciated, net 107,933,860 53,483,328 161,417,188 3,318,922
Total assets 293,495,342 65,580,446 359,075,788 8,970,479
Deferred Outflows of Resources
Deferred loss on refunding 131,510 800,660 932,170 -
Liabilities
Accounts payable 1,370,610 223,433 1,594,043 81,459
Accrued liabilities 1,462,603 83,923 1,546,526 64,503
Accrued interest payable 554,756 176,999 731,755 -
Deposits 1,000,237 - 1,000,237 -
Unearned revenue - other 2,226,151 282,984 2,509,135 -
Long-term obligations:
Due within one year 1,723,436 1,852,000 3,575,436 5,000
Due in more than one year 36,275,624 17,858,988 54,134,612 237,782
Total liabilities 44,613,417 20,478,327 65,091,744 388,744
Deferred Inflows of Resources
Property tax levies intended to finance FY15 24,193,594 - 24,193,594 3,751,395
Net Position
Net investment in capital assets 184,270,349 36,163,443 220,433,792 3,620,701
Restricted for:
Culture and recreation 3,281,627 - 3,281,627 -
Highways and streets 1,365,820 - 1,365,820 -
Public safety 687,810 - 687,810 -
Cemetery purposes 4,445,734 - 4,445,734 -
Affordable housing 760,934 - 760,934 -
Capital projects 4,216,899 - 4,216,899 -
Debt service 1,144,118 - 1,144,118 -
Parking 957,420 - 957,420 -
Unrestricted 23,689,130 9,739,336 33,428,466 1,209,639
Total net position 224,819,841 $ 45,902,779 $ 270,722,620 $ 4,830,340 $
See accompanying notes to financial statements.
52
17 CITY OF LAKE FOREST, ILLINOISExhibit A-2Statement of ActivitiesFor the Year Ended April 30, 2014Program Revenues Net (Expense) Revenue and Changes in Net PositionOperating Capital Primary Government Component UnitCharges for Grants and Grants and Governmental Business-type Lake ForestExpenses Services Contributions Contributions Activities Activities Total LibraryFunctions/ProgramPrimary government:Governmental activities:General government 12,311,198 $ 4,756,948 $ 172,712 $ 401,798 $ (6,979,740) $ -$ (6,979,740) $ Highways and streets 7,762,403 741,334 575,427 155,441 (6,290,201) - (6,290,201) Sanitation 2,586,125 77,147 - - (2,508,978) - (2,508,978) Culture and recreation 10,397,593 3,314,856 346,354 200,000 (6,536,383) - (6,536,383) Public safety 14,430,151 1,950,998 10,698 - (12,468,455) - (12,468,455) Interest on long-term debt 1,333,267 - - - (1,333,267) - (1,333,267) Total governmental activities 48,820,737 10,841,283 1,105,191 757,239 (36,117,024) - (36,117,024) Business-type activities:Waterworks and sewerage 7,476,752 7,521,323 - - - 44,571 44,571 Golf 1,554,678 1,397,836 - - - (156,842) (156,842) Total business-type activities 9,031,430 8,919,159 - - - (112,271) (112,271) Total primary government 57,852,167 $ 19,760,442 $ 1,105,191 $ 757,239 $ (36,117,024) (112,271) (36,229,295) Component UnitLake Forest Library3,569,259 $ 60,529 $ 104,304 $ -$ (3,404,426) $ General revenues and transfers:General revenuesProperty taxes23,744,650 - 23,744,650 3,718,524 Replacement taxes136,430 - 136,430 33,244 Sales tax3,047,529 - 3,047,529 - Income tax2,182,325 - 2,182,325 - Utility tax4,026,972 - 4,026,972 - Real estate transfer tax1,633,580 - 1,633,580 - Other taxes445,013 - 445,013 - Investment income637,193 38,550 675,743 9,328 Other 669,145 - 669,145 - Transfers(97,000) 97,000 - - Total general revenues and transfers36,425,837 135,550 36,561,387 3,761,096 Change in net position308,813 23,279 332,092 356,670 Net position – beginning of year, as restated224,511,028 45,879,500 270,390,528 4,473,670 Net position – end of year224,819,841 $ 45,902,779 $ 270,722,620 $ 4,830,340 $ See accompanying notes to financial statements. 53
18
CITY OF LAKE FOREST, ILLINOIS Exhibit A-3
Balance Sheet
Governmental Funds
April 30, 2014
Parks and Capital Nonmajor Total
General Recreation Improvements Governmental Governmental
Assets Fund Fund Fund Funds Funds
Cash and cash equivalents 16,246,124 $ 3,750,117 $ 4,285,413 $ 6,501,811 $ 30,783,465 $
Investments - - - 4,074,228 4,074,228
Receivables (net of allowance for
uncollectibles):
Property taxes 16,843,533 5,160,072 9,664 2,180,325 24,193,594
Other taxes 488,656 - - - 488,656
Accounts 545,308 62,141 170,567 - 778,016
Loans 1,504,421 - - - 1,504,421
Other 65,890 - - 279,105 344,995
Due from other governments 1,818,641 6,966 - 35,719 1,861,326
Advances to other funds 500,461 - - - 500,461
Due from fiduciary funds - - - 118,660 118,660
Inventory 113,408 - - - 113,408
Prepaids 8,700 - - - 8,700
Total assets 38,135,142 $ 8,979,296 $ 4,465,644 $ 13,189,848 $ 64,769,930 $
Liabilities
Accounts payable 570,766 $ 194,665 $ 198,457 $ 37,285 $ 1,001,173 $
Accrued liabilities 690,246 122,055 - 14,532 826,833
Deposits 944,587 1,650 32,000 22,000 1,000,237
Unearned revenue 1,471,050 746,477 8,624 - 2,226,151
Total liabilities 3,676,649 1,064,847 239,081 73,817 5,054,394
Deferred Inflows of Resources
Property tax levies intended to finance FY15 16,843,533 5,160,072 9,664 2,180,325 24,193,594
Unavailable grants and contributions - - 131,943 198,498 330,441
Total deferred inflows of resources 16,843,533 5,160,072 141,607 2,378,823 24,524,035
Fund Balances
Nonspendable 2,126,990 - - - 2,126,990
Restricted 957,420 2,754,377 4,084,956 9,287,924 17,084,677
Assigned - - - 1,449,284 1,449,284
Unassigned 14,530,550 - - - 14,530,550
Total fund balances 17,614,960 2,754,377 4,084,956 10,737,208 35,191,501
Total liabilities, deferred inflows
of resources, and fund balances 38,135,142 $ 8,979,296 $ 4,465,644 $ 13,189,848 $ 64,769,930 $
See accompanying notes to financial statements.
54
19
Exhibit A-4
CITY OF LAKE FOREST, ILLINOIS
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
April 30, 2014
Total fund balances – governmental funds 35,191,501 $
Amounts reported for governmental activities in the statement of net position are different because:
Deferred losses on refundings of debt are not considered to represent current financial
resources and, therefore, are not reported in the funds. 131,510
Net pension assets recorded in governmental activities are not current financial
resources and therefore are not reported in the funds. 1,997,994
Revenues in the Statement of Activities that do not provide current
financial resources are deferred inflows of resources in the funds. 330,441
Capital assets used in governmental activities are not financial resources and
therefore are not reported in the funds. Those assets consist of:
Land and land improvements 45,303,412 $
Land-infrastructure 66,740,770
Construction in progress 53,345
Infrastructure, net of $119,258,258 in accumulated depreciation 62,633,362
Buildings, net of $10,560,997 in accumulated depreciation 21,576,760
Improvements, net of $10,973,528 in accumulated depreciation 19,548,544
Machinery and equipment, net of $11,603,326 in
accumulated depreciation 4,147,062
Total capital assets, net 220,003,255
Long-term liabilities applicable to the City’s governmental activities are not
due and payable in the current period and accordingly are not reported
as fund liabilities. Interest on long-term debt is not accrued in
governmental funds, but rather is recognized as an expenditure when
due. All liabilities – both current and long-term – are reported in the
statement of net position. Balances at year-end are:
Accrued interest on bonds (554,756)
Net OPEB obligation (201,037)
General obligation bonds (35,852,196)
(Premium) discount on general obligation bonds (40,352)
Compensated absences (1,848,699)
Total long-term obligations (38,497,040)
Internal service funds are used by management to charge the costs of
insurance and automotive services to individual funds. The assets and
liabilities of the internal service funds are included in governmental
activities in the statement of net position. 5,662,180
Net position of governmental activities 224,819,841 $
See accompanying notes to financial statements.
55
20
CITY OF LAKE FOREST, ILLINOIS Exhibit A-5
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended April 30, 2014
Parks and Capital Nonmajor Total
General Recreation Improvements Governmental Governmental
Fund Fund Fund Funds Funds
Taxes:
Property 16,683,102 $ 5,120,026 $ 9,764 $ 1,931,758 $ 23,744,650 $
Other 9,663,772 42,497 1,699,580 66,000 11,471,849
Intergovernmental revenues - - - 576,125 576,125
Grants and contributions 10,215 123,446 411,798 416,790 962,249
Charges for services 3,065,786 2,999,023 109,584 1,199,107 7,373,500
Licenses and permits 2,477,338 - - - 2,477,338
Fines and forfeitures 297,005 - - - 297,005
Investment income 57,559 18,809 12,408 521,825 610,601
Miscellaneous revenue 709,054 4,672 31,784 13,874 759,384
Total revenues 32,963,831 8,308,473 2,274,918 4,725,479 48,272,701
Current:
General government 9,184,712 - 62,778 864,903 10,112,393
Highways and streets 2,293,840 - - - 2,293,840
Sanitation 2,212,166 - - - 2,212,166
Culture and recreation - 7,811,843 - 874,455 8,686,298
Public safety 14,074,949 - - 224,634 14,299,583
Capital outlay 11,490 408,056 4,839,501 268,725 5,527,772
Debt service:
Principal retirement - - - 1,400,950 1,400,950
Interest - - - 1,319,276 1,319,276
Total expenditures 27,777,157 8,219,899 4,902,279 4,952,943 45,852,278
Excess (deficiency) of revenues
over expenditures 5,186,674 88,574 (2,627,361) (227,464) 2,420,423
Other financing sources (uses):
Proceeds from capital asset sales - 1,219 789,169 650 791,038
Issuance of refunding bonds - - - 9,715,000 9,715,000
Premium on refunding bonds - - - 26,093 26,093
Payment to refunded bonds escrow agent - - - (9,665,000) (9,665,000)
Transfers in - 289,116 2,045,000 890,190 3,224,306
Transfers out (2,325,306) (96,000) - (900,000) (3,321,306)
Total other financing sources
(uses)(2,325,306) 194,335 2,834,169 66,933 770,131
Net change in fund balances 2,861,368 282,909 206,808 (160,531) 3,190,554
Fund balances – beginning of year 14,753,592 2,471,468 3,878,148 10,897,739 32,000,947
Fund balances – end of year 17,614,960 $ 2,754,377 $ 4,084,956 $ 10,737,208 $ 35,191,501 $
See accompanying notes to financial statements.
Revenues:
Expenditures:
56
21
CITY OF LAKE FOREST, ILLINOIS Exhibit A-6
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures,
and Changes in Fund Balances to the Statement of Activities
For the Year Ended April 30, 2014
Net changes in fund balances—total governmental funds 3,190,554 $
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities the cost of those assets is allocated over their estimated useful lives
and reported as depreciation expense. This is the amount by which
depreciation expense ($6,194,817) exceeded capital outlay
($1,796,563) in the current period.(4,398,254)
Proceeds from sales of capital assets are recorded as revenue in governmental funds,
however the gain (loss) on sale is recorded in the statement of activities.(194,222)
Revenues in the Statement of Activities that do not provide current
financial resources are not reported as revenues in the funds.
Change in unavailable grants and contributions 330,441
Bond proceeds are reported as financing sources in governmental funds and thus
contribute to the change in fund balance. In the statement of net position, however,
issuing debt increases long-term liabilities and does not affect the statement of
activities. Similarly, repayment of principal is an expenditure in the governmental
funds but reduces the liability in the statement of net position.
Debt issuance (9,715,000)
Debt premiums on issuance (26,093)
Repayments:
General obligation bonds 1,400,950
Payments to escrow agent 9,665,000
Net adjustment 1,324,857
Under the modified accrual basis of accounting used in the governmental funds,
expenditures are not recognized for transactions that are not normally paid
with expendable available financial resources. In the statement of activities,
however, which is presented on the accrual basis, expenses and liabilities
are reported regardless of when financial resources are available. In addition,
interest on long-term debt is not recognized under the modified accrual
basis of accounting until due, rather than as it accrues.
Increase in net pension asset 399,083
Decrease in OPEB obligation 443
Increase in accrued interest payable (56,232)
Amortization of bond deferred amounts, premiums and discounts 42,241
Increase in compensated absences (124,119)
261,416
The net revenue of certain activities of internal service funds is reported with
governmental activities.(205,979)
Change in net position of governmental activities – statement of activities 308,813 $
See accompanying notes to financial statements.
57
22
CITY OF LAKE FOREST, ILLINOIS Exhibit A-7
Statement of Net Position
Proprietary Funds
April 30, 2014 Nonmajor - Governmental
Waterworks Deerpath Total Activities—
and Sewerage Golf Course Enterprise Internal Service
Assets Fund Fund Funds Funds
Current assets:
Cash and cash equivalents 8,495,505 $ 562,418 $ 9,057,923 $ 6,209,694 $
Receivables:
Accounts receivable 1,007,747 10,973 1,018,720 -
Other 184 - 184 300,031
Inventories - 89,479 89,479 299,674
Prepaid expenses 359,710 - 359,710 577,015
Total current assets 9,863,146 662,870 10,526,016 7,386,414
Noncurrent assets:
Capital assets:
Not being depreciated 1,285,663 95,517 1,381,180 -
Being depreciated, net of
accumulated depreciation 52,024,482 1,458,846 53,483,328 28,132
Total capital assets, net 53,310,145 1,554,363 54,864,508 28,132
Total noncurrent assets 53,310,145 1,554,363 54,864,508 28,132
Total assets 63,173,291 2,217,233 65,390,524 7,414,546
Deferred Outflows of Resources
Deferred loss on refunding 762,668 37,992 800,660 -
Liabilities
Current liabilities:
Accounts payable 157,766 65,667 223,433 369,437
Accrued liabilities 69,068 14,855 83,923 635,770
Accrued interest payable 168,723 8,276 176,999 -
Unearned revenue 15,657 267,327 282,984 -
Current portion of long-term obligations:
General obligation bonds 1,762,000 85,000 1,847,000 -
Accrued compensated absences 4,223 777 5,000 -
Total current liabilities 2,177,437 441,902 2,619,339 1,005,207
Noncurrent liabilities:
Advances from other funds 500,461 - 500,461 -
General obligation bonds payable (net of
unamortized discounts)16,839,156 815,569 17,654,725 -
Accrued compensated absences 172,506 31,757 204,263 56,776
Total noncurrent liabilities 17,512,123 847,326 36,718,898 56,776
Total liabilities 19,689,560 1,289,228 20,978,788 1,061,983
Net Position
Net investment in capital assets 35,471,657 691,786 36,163,443 28,132
Unrestricted 8,774,742 274,211 9,048,953 6,324,431
Total net position 44,246,399 $ 965,997 $ 45,212,396 6,352,563 $
Adjustment to reflect the consolidation of internal service fund activities related
to enterprise funds.690,383
Net position of business-type activities reported in the government-wide
statement of net position.45,902,779 $
See accompanying notes to financial statements.
Business-type Activities – Enterprise Funds
58
23
CITY OF LAKE FOREST, ILLINOIS Exhibit A-8
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
For the Year Ended April 30, 2014
Nonmajor - Governmental
Waterworks Deerpath Total Activities—
and Sewerage Golf Course Enterprise Internal Service
Fund Fund Funds Funds
Operating revenues:
Charges for services 7,407,730 $ 1,394,424 $ 8,802,154 $ 8,130,160 $
Connection fees 106,552 - 106,552 -
Miscellaneous 7,041 3,412 10,453 -
Total operating revenues 7,521,323 1,397,836 8,919,159 8,130,160
Operating expenses:
General and administrative 2,042,519 590,975 2,633,494 8,387,866
Operations and maintenance 2,213,121 759,443 2,972,564 -
Depreciation and amortization 2,609,040 184,749 2,793,789 4,804
Total operating expenses 6,864,680 1,535,167 8,399,847 8,392,670
Operating income (loss) 656,643 (137,331) 519,312 (262,510)
Nonoperating revenues (expenses):
Investment income 36,412 2,138 38,550 26,592
Gain (loss) on disposal of capital assets (4,287) - (4,287) -
Interest expense (576,991) (20,366) (597,357) -
Total nonoperating revenues
(expenses)(544,866) (18,228) (563,094) 26,592
Increase (decrease) in net position
before transfers 111,777 (155,559) (43,782) (235,918)
Transfers in 1,000 96,000 97,000 -
Change in net position 112,777 (59,559) 53,218 (235,918)
Net position – beginning of year, as restated 44,133,622 1,025,556 45,159,178 6,588,481
Net position – end of year 44,246,399 $ 965,997 $ 45,212,396 6,352,563 $
Adjustment to reflect the consolidation of internal service fund activities
related to enterprise funds (29,939)
Change in net position of business-type activities reported in the
government-wide statement of activities 23,279 $
See accompanying notes to financial statements.
Business-type Activities – Enterprise Funds
59
24
CITY OF LAKE FOREST, ILLINOIS Exhibit A-9
Statement of Cash Flows
Proprietary Funds
For the Year Ended April 30, 2014
Nonmajor - Governmental
Waterworks Deerpath Total Activities -
and Sewerage Golf Course Enterprise Internal Service
Fund Fund Funds Funds
Cash flows from operating activities:
Receipts from customers 7,625,926 $ 1,372,179 $ 8,998,105 $ -$
Receipts from miscellaneous revenue 7,099 3,412 10,511 -
Receipts from interfund services provided - - - 7,844,825
Payments to suppliers (2,761,982) (735,854) (3,497,836) (7,622,623)
Payments to employees (1,881,229) (586,228) (2,467,457) (671,712)
Net cash flows from operating activities 2,989,814 53,509 3,043,323 (449,510)
Cash flows from noncapital financing activities:
Transfer from other funds 1,000 96,000 97,000 -
Net cash flows from noncapital financing
activities 1,000 96,000 97,000 -
Cash flows from capital and related financing activities:
Purchases of capital assets (1,136,446) (47,097) (1,183,543) -
Sale of equipment 350 - 350 -
Principal paid on capital debt (1,730,000) (85,000) (1,815,000) -
Interest paid on capital debt (481,220) (15,425) (496,645) -
Net cash flows from capital and
related financing activities (3,347,316) (147,522) (3,494,838) -
Cash flows from investing activities:
Interest and dividends received 36,412 2,138 38,550 26,592
Net cash flows from investing
activities 36,412 2,138 38,550 26,592
Net increase (decrease) in cash
and cash equivalents (320,090) 4,125 (315,965) (422,918)
Cash and cash equivalents – beginning of year 8,815,595 558,293 9,373,888 6,632,612
Cash and cash equivalents – end of year 8,495,505 $ 562,418 $ 9,057,923 $ 6,209,694 $
(Continued)
Business-type Activities – Enterprise Funds
60
25
CITY OF LAKE FOREST, ILLINOIS Exhibit A-9, Continued
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended April 30, 2014
Nonmajor - Governmental
Waterworks Deerpath Total Activities -
and Sewerage Golf Course Enterprise Internal Service
Fund Fund Funds Funds
Reconciliation of operating income (loss) to net
cash flows from operating activities:
Operating income (loss)656,643 $ (137,331) $ 519,312 $ (262,510) $
Adjustments to reconcile operating
income (loss) to net cash flows from
operating activities:
Depreciation expense 2,609,040 184,749 2,793,789 4,804
Changes in assets and liabilities:
Water sales receivable 103,237 - 103,237 -
Accounts receivable 93,961 (9,237) 84,724 (285,335)
Other receivables 58 - 58 -
Other assets - 17,416 17,416 (48,996)
Due from other funds 8,408 - 8,408 -
Prepaid expenses (287,405) - (287,405) -
Accounts payable 26,462 8,779 35,241 44,436
Accrued liabilities 31,727 (239) 31,488 94,866
Unearned revenue (93,962) (13,008) (106,970) -
Compensated absences 8,466 2,380 10,846 3,225
Advances (166,821) - (166,821) -
Total adjustments 2,333,171 190,840 2,524,011 (187,000)
Net cash flows from
operating activities 2,989,814 $ 53,509 $ 3,043,323 $ (449,510) $
See accompanying notes to financial statements.
Business-type Activities – Enterprise Funds
61
26
Exhibit A-10
Pension Private
Trust Purpose Agency
Assets Funds Trust Fund Fund
Cash and cash equivalents 1,455,997 $ 12,784 $ 60,174 $
Investments:
U.S. Treasury obligations 9,256,398 - -
U.S. Government agencies 8,070,977 - -
Municipal and corporate bonds 5,785,592 - -
Common stock 2,201,465 616,531 -
Equity mutual funds 30,236,412 - -
Other receivables 173,633 344 -
Prepaid expenses 12,290 - -
Total assets 57,192,764 629,659 60,174
Liabilities
Accounts payable 9,812 - -
Due to other funds - 118,660 -
Due to special assessment districts - - 60,174
Total liabilities 9,812 118,660 60,174
Net Position
Held in trust for pension trust and other purposes 57,182,952 $ 510,999 $ -$
See accompanying notes to financial statements.
CITY OF LAKE FOREST, ILLINOIS
Statement of Fiduciary Net Position
Fiduciary Funds
April 30, 2014
62
27
Exhibit A-11
Pension Private
Trust Purpose
Funds Trust Fund
Additions:
Contributions:
Employer 2,654,659 $ -$
Employee 636,982 -
Total contributions 3,291,641 -
Interest income 1,217,738 9,509
Net appreciation in fair value of investments 3,496,951 63,378
Less investment expenses (204,549) -
Net investment income 4,510,140 72,887
Total additions 7,801,781 72,887
Deductions:
Pension benefits and refunds 3,706,785 -
Other administrative expenses 8,000 39,021
Total deductions 3,714,785 39,021
Change in net position 4,086,996 33,866
Net position held in trust at beginning of year 53,095,956 477,133
Net position held in trust at end of year 57,182,952 $ 510,999 $
See accompanying notes to financial statements.
CITY OF LAKE FOREST, ILLINOIS
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended April 30, 2014
63
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
28 (Continued)
Note 1. Summary of Significant Accounting Policies
The City of Lake Forest, Illinois (City) was incorporated under a charter granted by the Illinois State
Legislature in 1861 and amended in 1869. The City is a home-rule community that operates under a City
Council-Manager form of government. The City provides many services to residents including police and fire
protection, water and sewers, recreation, refuse collection, a senior center, public library, a cemetery, and a
golf course.
The accounting policies of the City conform to accounting principles generally accepted in the United States
of America as applicable to governmental units. The following is a summary of the more significant policies.
(a) Reporting Entity
As defined by generally accepted accounting principles (GAAP) established by the Governmental
Accounting Standards Board (GASB), the financial reporting entity consists of the primary government,
as well as its component units, which are legally separate organizations for which the elected officials
of the primary government are financially accountable. Financial accountability is defined as:
(1) Appointment of a voting majority of the component unit’s board, and either (a) the ability to
impose will by the primary government, or (b) the possibility that the component unit will
provide a financial benefit to or impose a financial burden on the primary government; or
(2) Fiscal dependency on the primary government and the possibility that the component unit
will provide a financial benefit to or impose a financial burden on the primary government.
Financial benefit or financial burden is created if any one of the following relationships exists:
(1) The primary government is legally entitled to or has access to the component unit’s
resources.
(2) The primary government is legally required or has assumed the obligation to finance the
deficits of, or provide support to, the component unit.
(3) The primary government is obligated in some manner for the other component unit’s debt.
The accompanying financial statements present the City of Lake Forest (the primary government) and
its component unit. The financial data of the component unit are included in the City’s reporting entity
because of the significance of its operational or financial relationship with the City.
Discretely Presented Component Unit
Discretely presented component units are entities that are legally separate from the City, but for which
the City is financially accountable, or whose relationship with the City are such that exclusion would
cause the City’s statements to be misleading or incomplete. The City’s component unit is reported in a
separate column to emphasize that it is legally separate from the City.
Lake Forest Library (Library) – The Library is governed by a seven-member Board of Trustees
appointed by the Mayor of the City. The Library is financially accountable to the City as the City’s
approval is needed for the Library to issue bonded debt. Complete financial statements of the
Library are available at the City’s Administrative Office, 800 North Field Drive, Lake Forest,
Illinois 60045. The Library follows the same accounting policies as the City.
64
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
29 (Continued)
(b) Basis of Presentation
Government-wide Financial Statements. The government-wide statement of net position and
statement of activities report the overall financial activity of the City, excluding fiduciary activities.
Eliminations have been made to minimize the double-counting of internal activities of the City. These
statements distinguish between the governmental and business-type activities of the City. However,
interfund services provided for and used are not eliminated in the process of consolidation.
Governmental activities generally are financed through taxes, intergovernmental revenues, and other
non-exchange transactions. Business-type activities are financed in whole or in part by fees charged
to external parties.
The statement of activities presents a comparison between direct expenses and program revenues for
the different business-type activities of the City and for each function of the City’s governmental
activities. Direct expenses are those that are clearly identifiable with a specific function. Program
revenues include (a) charges paid by the recipients of goods or services offered by the programs and
(b) grants and contributions that are restricted to meeting the operational or capital requirements of a
particular program. Revenues that are not classified as program revenues, including all taxes, are
presented as general revenues.
Fund Financial Statements. The fund financial statements provide information about the City’s
funds, including its fiduciary funds. Separate statements for each fund category ― governmental,
proprietary, and fiduciary ― are presented. The emphasis on fund financial statements is on major
governmental and enterprise funds, each displayed in a separate column. All remaining governmental
and enterprise funds are aggregated and reported as nonmajor funds.
The City reports the following major governmental funds:
General Fund – This is the City’s primary operating fund. It accounts for all financial
resources of the City, except those required to be accounted for in another fund. The services
which are administered by the City and accounted for in the General Fund include, among
others, City Council, Finance, Administration, Police, Fire and Public Works.
Parks and Recreation Fund – This fund accounts for the maintenance of the parks and
recreation programs. Services include a fitness center, dance academy, and a variety of other
indoor and outdoor programs. Principal revenue sources for this fund include a dedicated tax
levy, grants, contributions and program fees.
Capital Improvements Fund – This fund accounts for revenues to be used to fund city
building and infrastructure projects.
65
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
30 (Continued)
The City reports the following major proprietary fund:
Waterworks and Sewerage Fund – This fund accounts for the provision of water and sewer
services to the residents of the City.
Additionally, the City reports the following fund types:
Internal Service – These funds account for the self-insured medical and dental benefits for
City employees, the costs of liability insurance, and for the costs of operating a maintenance
and repair facility for automotive and other equipment used by the City departments.
Pension Trust Funds – These funds account for the accumulation of resources to be used for
disability or retirement annuity payments to uniformed police and fire department personnel at
appropriate amounts and times in the future.
Private Purpose Trust Fund – This fund is used to account for monies provided by private
donations on which the investment earnings are expected to be used for the maintenance of
each individual’s cemetery plot.
Agency Fund – This fund is custodial and accounts for amounts held for special assessment
districts.
(c) Basis of Accounting
The government-wide, proprietary, and fiduciary fund financial statements are reported using the
economic resources measurement focus and the accrual basis of accounting, except for agency funds
which have no measurement focus. Revenues are recorded when earned and expenses are recorded
at the time liabilities are incurred, regardless of when the related cash flow takes place. Non-exchange
transactions, in which the City gives (or receives) value without directly receiving (or giving) equal
value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis,
revenues from property taxes are recognized in the period for which the levy is intended to finance,
which is the year after the taxes are levied. For example, the 2012 property tax levy is recognized as
revenue for the year ended April 30, 2014. Revenue from grants and other contributions are
recognized in the fiscal year in which all eligibility requirements imposed by the provider have been
met. Eligibility requirements include timing requirements, which specify the year when the resources
are required to be used or the fiscal year when use is first permitted; matching requirements, in which
the City must provide local resources to be used for a specified purpose; and expenditure
requirements, in which the resources are provided to the City on a reimbursement basis.
Governmental funds are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable
and available. Revenues are considered to be available when they are collectible within the current
period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues, except for property taxes and income taxes, to be available if they are collected
within 90 days of the end of the current fiscal period. Revenues for property taxes are considered to be
available if they are collected within 60 days of the end of the current fiscal year. Revenues for income
taxes are considered to be available if they are collected within 120 days of the end of the current fiscal
year. Expenditures generally are recorded when the liability is incurred, as under accrual accounting.
However, principal and interest on long-term debt, claims and judgments, and compensated absences
are recorded only when payment is due. Capital asset acquisitions are reported as expenditures in
governmental funds. Proceeds of long-term debt and acquisitions under capital leases are reported as
66
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
31 (Continued)
other financing sources. Significant revenue sources which are susceptible to accrual include property
taxes, miscellaneous taxes, charges for services, grants, and investment income. All other revenue
sources including fines and forfeitures, inspection fees, and recreation fees are considered to be
measurable and available only when cash is received.
Proprietary fund revenues are classified as either operating or nonoperating. Operating revenues and
expenses generally result from providing services in connection with the proprietary fund’s principal
ongoing operations. Operating revenue includes activities that have characteristics of exchange
transactions including charges for services. Non-operating revenue includes activities that have the
characteristics of non-exchange transactions, such as most grants and subsidies. Nonoperating
revenues also include investment income. Nonoperating expenses include interest expense.
The Governmental Accounting Standard Board (GASB) has issued Statement No. 65, Items Previously
Recorded as Assets and Liabilities (GASB 65), which was adopted by the City for the year ended April
30, 2014. GASB 65 now establishes accounting and financial reporting standards that reclassify, as
deferred outflows of resources or deferred inflows of resources, certain items that were previously
reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources,
certain items that were previously reported as assets and liabilities. In accordance with GASB 65 the
City now reports both deferred inflows of resources and deferred outflows of resources on its financial
statements. In addition, the impact of implementing this statement resulted in a restatement of the
beginning Net Position for Governmental Activities and Business Type Activities, Major Enterprise, and
Non-major Enterprise Funds. See Note 13 for details of the impact of this restatement.
The City reports both deferred inflows of resources and unearned revenue on its financial statements.
Deferred inflows of resources arise when a potential revenue does not meet both the “measurable” and
“available” criteria for recognition in the current period in the governmental funds. Deferred inflows of
resources also arise when property tax receivables are recorded prior to the period the levy is intended
to finance. Unearned revenues arise when resources are received by the City before it has a legal
claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In
subsequent periods, when revenue recognition criteria are met or when the City has a legal claim to
the resources, the liability for unearned revenues is removed from the financial statements and
revenue is recognized.
(d) Cash and Cash Equivalents
The City considers all highly liquid investments with a maturity date within three months of the date
acquired to be cash equivalents.
(e) Investments
Investments are reported at fair value based upon quoted market prices.
The City is authorized to invest in the following types of securities under Illinois law and the City’s
investment policy:
• Bonds, notes, certificates of indebtedness, treasury bills, or other securities which are
guaranteed by the full faith and credit of the United States of America;
• Bonds, notes, debentures, or other similar obligations of U.S. Government or its agencies;
67
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
32 (Continued)
• 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 there under, 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.
68
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
33 (Continued)
The Lake Forest Cemetery Investment Fund is also permitted to invest in the following instruments:
• Common and preferred stock authorized for investments of trust funds under the laws of
the State of Illinois limited to 60% of the fund’s investments.
In addition, Pension Funds are also permitted to invest in the following instruments:
• Common and preferred stock authorized for investments of trust funds under the laws of
the State of Illinois limited to 35% of the fund’s investments;
• General accounts of Illinois-licensed life insurance companies;
• Separate accounts of Illinois-licensed insurance companies invested in stocks, bonds, and
real estate limited to 10% of the fund’s investments;
• Bonds issued by any county, city, township, village, incorporated town, municipal
corporation, or school district in Illinois; and
• Tax anticipation warrants issued by any city, township, village, incorporated town, or fire
protection district in Illinois.
(f) Unbilled Water Sales Receivables
Estimated water sales for water usage prior to year-end that are unbilled are recognized as current
year revenues and are included in water sales receivables.
(g) Interfund Transactions
The City has the following types of interfund transactions:
Loans—amounts provided with a requirement for repayment. Interfund loans are reported as
interfund receivables (i.e. due from other funds) in lender funds and interfund payables (i.e. due to
other funds) in borrower funds. Noncurrent portions of long-term interfund loan receivables are
reported as advances and are offset equally by a fund balance reserve account which indicates
that they do not constitute expendable available financial resources and therefore are not available
for appropriation.
Services provided and used—sales and purchases of goods and services between funds for a
price approximating their external exchange value. Interfund services provided and used are
reported as revenues in seller funds and expenditures or expenses in purchaser funds. Unpaid
amounts are reported as interfund receivables and payables in the fund balance sheets or fund
statements of net position.
Reimbursements—repayments from the funds responsible for particular expenditures or
expenses to the funds that initially paid for them. Reimbursements are reported as expenditures in
the reimbursing fund and as a reduction of expenditures in the reimbursed fund.
Transfers—flows of assets (such as cash or goods) without equivalent flows of assets in return
and without a requirement for repayment. In governmental funds, transfers are reported as other
financing uses in the funds making transfers and as other financing sources in the funds receiving
transfers. In proprietary funds, transfers are reported after nonoperating revenues and expenses.
69
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
34 (Continued)
(h) Inventory and Prepaid Items
Inventory is recorded at cost. Inventories of governmental funds are recorded as expenditures when
consumed rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements, using the consumption method.
(i) Capital Assets
Capital assets, which include property, plant, equipment, infrastructure assets (e.g., roads, bridges,
traffic controls, drainage systems, and similar items), and intangible assets (software, easements, etc.)
are reported in the applicable governmental or business-type activities columns in the government-
wide financial statements. Capital assets are defined by the City as assets with an initial, individual
cost of more than $10,000 and an estimated useful life in excess of one year. Purchased capital assets
are valued at cost where historical records are available and at an estimated historical cost where no
historical records exist. Donated capital assets are valued at their estimated fair market value on the
date received.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend asset lives are not capitalized, whereas improvements extending the useful lives of the related
capital assets are capitalized.
Interest is capitalized on proprietary fund property during the construction period. The amount of
interest to be capitalized is calculated by offsetting interest expense incurred from the date of the
borrowing until completion of the project with interest earned on invested proceeds over the same
period. Capitalized interest cost is amortized on the same basis as the related asset is depreciated.
Capital assets of the City and its component unit (Lake Forest Library) are depreciated using the
straight-line method over the following useful lives:
Public domain infrastructure 20 – 60 years
Buildings 30 – 50 years
Improvements other than buildings 40 – 80 years
Vehicles, machinery, equipment and software 3 – 20 years
Water mains 40 years
Sanitary sewers 50 years
(j) Compensated Absences
The liability for compensated absences reported in the government-wide and proprietary fund
statements consists of unpaid, accumulated vacation and sick leave balances. The liability for
compensated absences is only reported in the governmental funds if they have matured. The liability
has been calculated using the vesting method, in which leave amounts for both employees who
currently are eligible to receive termination payments and other employees who are expected to
become eligible in the future to receive such payments upon termination are included.
70
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
35 (Continued)
(k) Bond Premiums, Discounts, and Issuance Costs
In the government-wide and proprietary fund financial statements, bond premiums and discounts are
deferred and amortized over the life of the bonds using the straight line method which is not materially
different from the effective interest method. Bond issuance costs are expensed when incurred. Bonds
payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources. Premiums on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from the actual debt proceeds received, are reported as debt service expenditures.
(l) Net Position
In the government-wide and proprietary fund financial statements, equity is displayed in three
components as follows:
Net Investment in Capital Assets – This consists of capital assets, net of accumulated
depreciation, less the outstanding balances of any bonds (and related deferred outflows of
resources), mortgages, notes, or other borrowings that are attributable to the acquisition,
construction, or improvement of those assets.
Restricted – This consists of net position that is legally restricted by outside parties or by law
through constitutional provisions or enabling legislation.
Unrestricted – This consists of net position that does not meet the definition of “restricted” or “net
investment in capital assets.”
See the policy below for the use of restricted resources in the governmental funds. Restricted net asset
balances may differ from restricted fund balances reported in the governmental fund statements
because the basis of accounting is different. For business-type activities and proprietary funds, the City
considers restricted resources to have been spent first when an expense is incurred for which both
restricted and unrestricted resources are available.
(m) Fund Balances
Governmental Accounting Standards Board Statement No. 54 (GASB 54), Fund Balance Reporting
and Governmental Fund Type Definitions establishes fund balance classifications that comprise a
hierarchy based primarily on the extent to which a government is bound to observe constraints
imposed upon the use of the resources reported in the governmental funds. Within the governmental
fund types, the City’s fund balances are reported in one of the following classifications:
Nonspendable – includes amounts that cannot be spent because they are either: a) not in
spendable form; or b) legally or contractually required to be maintained intact.
Restricted – includes amounts that are restricted to specific purposes, that is, when constraints
placed on the use of resources are either: a) externally imposed by creditors (such as through
debt covenants), grantors, contributors, or laws or regulations of other governments; or b) imposed
by law through constitutional provisions or enabling legislation.
71
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
36 (Continued)
Committed – includes amounts that can only be used for specific purposes pursuant to
constraints imposed by formal action of the City’s highest level of decision-making authority.
Committed amounts cannot be used for any other purpose unless the City removes or changes the
specified use by taking the same type of action it employed to previously commit those amounts.
The City’s highest level of decision-making authority rests with the City Council. The City passes
formal resolutions to commit their fund balances.
Assigned – includes amounts that are constrained by the City’s intent to be used for specific
purposes, but that are neither restricted nor committed. Intent is expressed by: a) the City Council
itself; or b) a body or official to which the City Council has delegated the authority to assign
amounts to be used for specific purposes. The City Council has delegated this authority to the
City’s Finance Director. Within the other governmental fund types (special revenue, debt service,
capital projects) resources are assigned in accordance with the established fund purpose and
approved budget/appropriation. Residual fund balances in these fund types that are not restricted
or committed are reported as assigned.
Unassigned – includes the residual fund balance that has not been restricted, committed, or
assigned within the general fund and deficit fund balances of other governmental funds.
In the general fund, it is the City’s policy to consider restricted resources to have been spent first when
an expenditure is incurred for which both restricted and unrestricted (i.e. committed, assigned or
unassigned) fund balances are available, followed by committed and then assigned fund balances.
Unassigned amounts are used only after the other resources have been used.
In other governmental funds (special revenue, capital projects and debt service fund types), it is the
City’s policy to consider restricted resources to have been spent last. When an expenditure is incurred
for purposes for which both restricted and unrestricted fund balances are available, the City first utilizes
any assigned amounts, followed by committed and then restricted amounts.
72
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
37 (Continued)
Fund Balance Classifications
At April 30, 2014, the City’s fund balances were as follows:
Parks and Capital Nonmajor Total
General Recreation Improvements Governmental Governmental
Fund Fund Fund Funds Funds
Nonspendable
Prepaids 8,700 $ -$ -$ -$ 8,700 $
Inventory 113,408 - - - 113,408
Interfund advances 500,461 - - - 500,461
Long-term notes 1,504,421 - - - 1,504,421
Total nonspendable 2,126,990 - - - 2,126,990
Restricted:
Culture and recreation - 2,754,377 - 352,250 3,106,627
Highways and streets - - - 1,342,322 1,342,322
Public safety - fire - - - 213,152 213,152
Public safety - police - - - 474,658 474,658
Cemetery perpetual care - - - 4,445,734 4,445,734
Affordable housing - - - 760,934 760,934
Capital projects - - 4,084,956 - 4,084,956
Parking lots 957,420 - - - 957,420
Debt service - - - 1,698,874 1,698,874
Total restricted 957,420 2,754,377 4,084,956 9,287,924 17,084,677
Assigned
Capital projects - - - 1,449,284 1,449,284
Unassigned 14,530,550 - - - 14,530,550
Total fund balances 17,614,960 $ 2,754,377 $ 4,084,956 $ 10,737,208 $ 35,191,501 $
(n) Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in
the United States of America requires management to make estimates and assumptions that affect the
reported amounts of assets, deferred outflows of resources, liabilities, deferred inflows of resources
and disclosures of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenditures/expenses during the reporting period. Actual results
could differ from those estimates.
(o) New Accounting Pronouncements
GASB Statement No. 67, Financial Reporting for Pension Plans, will be effective for the City beginning
with its year ended April 30, 2015. This statement builds upon the existing framework for financial
reports of defined benefit pension plans, which includes a statement of fiduciary net position (the
amount held in a trust for paying retirement benefits) and a statement of changes in fiduciary net
position. This statement enhances note disclosures and RSI for both defined benefit and defined
contribution pension plans and requires the presentation of new information about annual money-
weighted rates of return in the notes to the financial statements and in 10-year RSI schedules.
73
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
38 (Continued)
GASB Statement No. 68, Accounting and Financial Reporting for Pensions, will be effective for the City
beginning with its year ended April 30, 2016. This statement requires governments providing defined
benefit pensions to recognize their long-term obligation for pension benefits as a liability for the first
time, and to more comprehensively and comparably measure the annual costs of pension benefits.
This statement also enhances accountability and transparency through revised and new note
disclosures and required supplementary information (RSI).
GASB Statement No. 69, Government Combinations and Disposals of Government Operations will be
effective for the City beginning with its year ended April 30, 2015. This Statement establishes
accounting and financial reporting standards related to government combinations and disposals of
government operations. As used in this Statement, the term government combinations include a
variety of transactions referred to as mergers, acquisitions, and transfers of operations.
GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees,
will be effective for the City with its year ended April 30, 2015. This statement requires a government
that extends a nonexchange financial guarantee to recognize a liability when qualitative factors and
historical data, if any, indicate that it is more likely than not that the government will be required to
make a payment on the guarantee. This Statement requires a government that has issued an
obligation guaranteed in a nonexchange transaction to recognize revenue to the extent of the reduction
in its guaranteed liabilities. This Statement also requires a government that is required to repay a
guarantor for making a payment on a guaranteed obligation or legally assuming the guaranteed
obligation to continue to recognize a liability until legally released as an obligor.
GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement
Date – an amendment of GASB Statement No. 68. This statement is to improve accounting and
financial reporting by addressing an issue in Statement No. 68, Accounting and Financial Reporting for
Pensions, concerning transition provisions related to certain pension contributions made to defined
benefit pension plans prior to implementation of that Statement by employers and non-employer
contributing entities. The provisions of this Statement should be applied simultaneously with the
provisions of GASB Statement No. 68 (FY16).
Management has not fully determined what impact, if any, these Statements may have on its financial
statements; however, GASB Statements 67 and 68 are expected to have a material impact when
implemented.
74
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
39 (Continued)
Note 2. Stewardship, Compliance and Accountability
Budgetary Information
The budget amounts represent the operating budget for the City and the appropriations represent
the City’s legal expenditure limit. The City Council follows these procedures in establishing the
budgetary and appropriations data reflected in the financial statements:
(1) The City Manager submits to the City Council a proposed operating budget for the fiscal
year. The operating budget includes proposed expenditures and estimated revenues.
(2) Public budget and appropriations meetings are conducted by the City to obtain taxpayer
comments.
(3) The budget and the appropriation ordinance, which is 10% higher than the budget, are both
legally enacted through action of the City Council. Once enacted, the budget cannot be
amended without approval from the City Council. Funds may have expenditures in excess of
budgeted amounts, but legally may not have expenditures in excess of appropriations.
(4) The legal level of budgetary control is the fund level. Management may make transfers of
appropriations within a fund. Any expenditures that exceed the total appropriations at the
fund level must be approved by the City Council.
(5) Formal budgetary integration and legally adopted budgets are employed as a management
control device during the year for the General and Special Revenue Funds, through an
internal reporting system. Such budgetary integration permits the City’s department
managers to monitor actual revenues and expenditures relative to budgets on an ongoing
basis throughout the year. Formal encumbrance accounting is not used, and appropriations
not used by the end of the fiscal year lapse.
(6) Governmental fund budgets are adopted for all funds and are on a basis consistent with
generally accepted accounting principles (GAAP). All proprietary funds have budgets and
are generally in accordance with GAAP except that principal retirement is budgeted and
depreciation expense is not budgeted. Additionally, the Pension Trust Funds adopt budgets
which are generally in accordance with GAAP.
75
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
40 (Continued)
Note 3. Cash and Investments
Cash and investments are held separately and in pools by several of the City’s funds. The City maintains
various cash and investment pools that are available for use by all funds. Income from pooled investments is
allocated to the funds based on their proportional share of their investment balance. The deposits and
investments of the Police and Fire Pension Funds (Pension Funds) are held separately. A summary of cash
and investments as of April 30, 2014 is as follows:
Component
Unit
Governmental Police Firefighters' Other Lake
and Business- Pension Pension Fiduciary Forest
type Activities Fund Fund Activities Library
Petty cash 9,975 $ -$ 300 $ -$ 350 $
Demand deposits 45,430,003 272,211 1,183,486 72,957 1,521,806
Certificate of deposit 206,616 - - - -
Illinois Funds 611,104 - - - 8,238
Equity securities 3,867,612 15,606,517 16,831,360 616,532 -
U.S. Treasury obligations - 6,307,782 2,948,616 - -
U.S. Government agencies - 3,230,257 4,840,720 - -
Municipal/corporate bonds - 985,094 4,800,498 - -
Total 50,125,310 $ 26,401,861 $ 30,604,980 $ 689,489 $ 1,530,394 $
Fiduciary activities
Illinois Funds
Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows
governments within the State to pool their funds for investment purposes. Illinois Funds is not registered with
the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the
Investment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Funds’ share price,
which is the price the investment could be sold for.
Investment Policies
The City and the Library’s investments are made in accordance with the Public Funds Investment Act (30
ILCS 235/1) (the “Act”) and the City’s investment policy. The Cemetery Investment Fund’s investments are
made in accordance with the Cemetery Care Act (760 ILCS 100/1-24) (the “Act”) and the Cemetery
Commission’s investment policy. The Police and Firefighters’ Pension Funds’ investments are made in
accordance with the Illinois Pension Code (40 ILCS 5/1-113.2 to 113.10) and each respective pension funds’
investment policy. A summary of authorized investments is included in Note 1e.
76
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
41 (Continued)
Custodial Credit Risk – Deposits
Custodial credit risk for deposits is the risk that in the event of a financial institution failure, the City’s deposits
may not be returned. The City’s investment policy requires that deposits that exceed the amount insured by
FDIC, NCUA, and/or SIPC insurance protection be collateralized, at the rate of 110% of such deposits, by
U.S. Government Securities, obligations of Federal instrumentalities, obligations of the State of Illinois, or
general obligation bonds of the City. The Cemetery Investment Fund and the Pension Funds do not have a
deposit policy for custodial credit risk. As of April 30, 2014, the City, Cemetery Investment Fund and the
Police and Firefighters’ Pension Funds’ bank balances were not subject to custodial credit risk as they were
either insured or collateralized with investments held by the City or its agent, in the City’s name.
Interest Rate Risk
Interest rate risk is the risk that the fair value of investments will decrease as a result of an increase in
interest rates. Although the City and Cemetery Fund’s investment policy does not specifically limit the length
of maturity of investments, it requires the City and Cemetery Fund to minimize the interest rate risk by
structuring the investment portfolio so that securities mature to meet cash requirements for ongoing
operations, thereby avoiding the need to sell securities on the open market prior to maturity and by investing
operating funds primarily in short-term securities, money market mutual funds, or similar investment pools.
The Police Pension Fund’s investment policy does not limit the length of maturity of investments since it is
passively managing its fixed income exposure to the Barclays Capital Intermediate Government Index.
Although the Firefighters’ Pension Fund’s investment policy does not specifically limit the length of maturity
of investments, it manages interest rate risk by investing fixed income assets in proportion to the present
value of the Fund’s projected liabilities.
As of April 30, 2014, the maturities for debt securities subject to interest rate risk are as follows:
Fair Less More
Value than 1 1-5 6-10 than 10
Fiduciary activities:
Police Pension Fund:
U.S. Treasury obligations 6,307,782 $ -$ 3,192,056 $ 3,115,726 $ -$
U.S. Government agencies 3,230,257 196,312 3,033,945 - -
Municipal/corporate bonds 985,094 169,880 753,522 61,692 -
Total Police Pension 10,523,133 366,192 6,979,523 3,177,418 -
Firefighters' Pension Fund:
U.S. Treasury obligations 2,948,616 - 1,156,086 1,792,530 -
U.S. Government agencies 4,840,720 536,424 2,043,332 529,943 1,731,021
Municipal/corporate bonds 4,800,498 448,525 2,690,245 1,661,728 -
Total Firefighters' Pension 12,589,834 984,949 5,889,663 3,984,201 1,731,021
Total fiduciary activities 23,112,967 $ 1,351,141 $ 12,869,186 $ 7,161,619 $ 1,731,021 $
Investment maturities (in years)
77
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
42 (Continued)
Credit Risk
Credit risk is the risk that the City or Pension Funds will not recover their investments due to the inability of
the counterparty to fulfill its obligation. The City’s investment policy limits the City’s exposure to credit risk by
limiting investments to the safest types as described in Note 1e.
The Cemetery and Pension Funds’ general investment policy is to follow the prudent person rule subject to
the specific restrictions of the Illinois Cemetery Care Act and the Illinois Pension Code and the respective
Cemetery and Pension Funds’ asset allocation policy. Under the prudent person rule, investments shall be
made with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent
person acting in like capacity and familiar with such matters would use in the investment of a fund or like
character and with like aims.
The Cemetery and Police Pension Funds’ investment policy further limits the investment in any one company
or issuer to 5% of the funds’ total assets. The Cemetery Fund also limits the investment in any one equity
industry group to no more than 15% of the Fund’s assets.
As of April 30, 2014, the City, Cemetery Investment Fund, and Pension Funds had the following fixed income
investments which are rated by Moody’s and/or Standard and Poor’s. U.S. Treasury obligations which are
backed by the full faith and credit of the U.S. Government are not included in the chart below.
Fair
Value AAA AA A BBB Not Rated*
Governmental and business-type
activities:
Illinois Funds 611,104 $ 611,104 $ -$ -$ -$ -$
Fiduciary activities:
Police Pension Fund:
U.S. Government agencies 3,230,257 $ 196,312 $ 3,033,945 $ -$ -$ -$
Municipal/corporate bonds 985,094 40,020 76,167 771,595 97,312 -
4,215,351 236,332 3,110,112 771,595 97,312 -
Firefighters' Pension Fund:
U.S. Government agencies 4,840,720 151,529 1,851,802 - - 2,837,389
Municipal/corporate bonds 4,800,498 316,493 800,743 1,972,147 1,611,177 99,938
9,641,218 468,022 2,652,545 1,972,147 1,611,177 2,937,327
Total fiduciary activities 13,856,569 $ 704,354 $ 5,762,657 $ 2,743,742 $ 1,708,489 $ 2,937,327 $
Component unit:
Lake Forest Library:
Illinois Funds 8,238 $ 8,238 $ -$ -$ -$ -$
Credit ratings
* These securities are not rated by either Moody's or Standard and Poor's.
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of investment in any one single
issuer. The Firefighters’ Pension holds 5.0% of its portfolio in FNMA securities. The Police Pension Fund
holds 6.8% of its portfolio in FNMA securities.
78
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
43 (Continued)
Custodial Credit Risk
Custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to
recover the value of its investments or collateral securities that are in the possession of a third party. The
investment policies for the City, Cemetery and Pension Funds require investment securities be held by an
authorized custodial bank pursuant to a written custodial agreement.
Foreign Currency Risk
Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an
investment or deposit. As of April 30, 2014, 7.9% of the Firefighters’ Pension Fund’s assets were invested in
the Vanguard Total International Stock Index. The funds are subject to foreign currency risk. To diversify
risk, the Firefighters’ Pension Fund utilizes an equity asset allocation that incorporates a variety of
management styles. The allocations are reviewed quarterly and rebalanced if necessary. As of April 30,
2014, 15.6% of the Police Pension Fund’s assets were invested in the Dodge & Cox International Stock
Fund, Vanguard Total International Stock Index Fund, as well as foreign stocks and bonds. The funds are
subject to foreign currency risk; however, the funds are well diversified across international regions. The
Cemetery Fund had 17.9% of its assets invested in William Blair International Growth Fund as of April 30,
2014.
Note 4. Property Tax
The City’s property tax is levied each calendar year on all taxable real property located in the City. The City
is a special charter community under the 1870 Illinois Constitution and, accordingly, does not have a
statutory tax rate limit. The Lake County Assessor (Assessor) is responsible for assessment of all taxable
real property within Lake County, except for certain railroad property which is assessed directly by the State.
One quarter of Lake County is reassessed each year on a repeating quadrennial schedule established by the
Assessor.
The Lake County Clerk computes the annual tax rate by dividing the levy into the assessed valuation of the
taxing district. The County Clerk then computes the rate for each parcel of real property by aggregating the
tax rates of all taxing districts having jurisdiction over that particular parcel.
Property taxes are collected by the Lake County Collector and are submitted to the Lake County Treasurer,
who remits to the units their respective shares of the collections. Taxes levied in one year become due and
payable in two installments in June and September during the following year. Taxes must be levied by the
last Tuesday in December for the levy year. The levy becomes an enforceable lien against the property as of
January 1 of the levy year.
The property tax levy is recorded as a receivable, net of estimated uncollectibles. Based upon collection
histories, the City has provided an allowance for uncollectible real property taxes equivalent to 1.5% of the
current year’s levy. All uncollected taxes relating to prior years’ levies have been written off.
Revenue for property taxes is recognized in the governmental funds in the year for which the taxes are
intended to finance and the funds are available. The City considers property tax revenue to be available if it
is collected during the current year or within 60 days after year-end. Property taxes levied for calendar year
2013 are intended to finance the fiscal year 2015 expenditures. Accordingly, the City recognized revenue
during the year ended April 30, 2014 for collections from the calendar year 2012 levy if it was received by
June 30, 2014. Property taxes levied for calendar year 2013 which will be collected in fiscal year 2015 are
recorded as receivables and a deferred inflow of resources.
79
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
44 (Continued)
Note 5. Interfund Balances and Activity
Due to/from Other Funds
The following balances at April 30, 2014 represent amounts due to/from other funds:
Receivable fund Payable fund Amount
Nonmajor Governmental Fund Fiduciary Fund 118,660 $
This balance resulted from operating transactions between funds and will be repaid during the next fiscal
year within the normal course of business.
Advances to/from Other Funds
The following balances at April 30, 2014 represent advances between funds:
Receivable fund Payable fund Amount
General Fund Waterworks and Sewerage Fund 500,461 $
This balance resulted from operating transactions between funds and will be repaid over the next four years.
Transfers to/from Other Funds
Interfund transfers for the year ended April 30, 2014 were as follows:
Transfer In Fund(s)Purpose Amount
Parks and Recreation Transfer for operations 289,116$
Capital Improvement Fund Transfer for capital outlay 1,145,000
Capital Improvement Fund Transfer for capital outlay 900,000
Waterworks and Sewerage Fund Transfer for operations 1,000
Nonmajor governmental Transfer for debt service 665,436
Nonmajor governmental Transfer for operations 224,754
Nonmajor business activity Transfer for operations 96,000
3,321,306$
Transfer Out Fund(s)
General Fund Transfer for capital outlay 1,145,000$
General Fund Transfer for operations 289,116
General Fund Transfer for debt service 665,436
General Fund Transfer for operations 224,754
General Fund Transfer for operations 1,000
Parks and Recreation Transfer for operations 96,000
Nonmajor governmental Transfer for capital outlay 900,000
3,321,306$
80
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
45 (Continued)
Note 6. Capital Assets
A summary of capital asset activity for the year ended April 30, 2014 is as follows:
Balance Additions Balance
May 1, 2013 or Transfers Disposals April 30, 2014
Governmental Activities:
Capital assets not being depreciated:
Land and land improvements 45,497,634 $ -$ 194,222 $ 45,303,412 $
Infrastructure – land 66,740,770 - - 66,740,770
Construction in progress - 53,345 - 53,345
Total capital assets not being
depreciated 112,238,404 53,345 194,222 112,097,527
Capital assets being depreciated:
Infrastructure 181,074,301 883,640 66,321 181,891,620
Buildings 32,137,757 - - 32,137,757
Improvements other
than buildings 30,350,689 171,383 - 30,522,072
Machinery and equipment 15,374,987 688,195 242,043 15,821,139
Total capital assets being
depreciated 258,937,734 1,743,218 308,364 260,372,588
Less accumulated depreciation:
Infrastructure 116,355,292 2,969,287 66,321 119,258,258
Buildings 9,809,005 751,992 - 10,560,997
Improvements other
than buildings 9,574,452 1,399,076 - 10,973,528
Machinery and equipment 10,808,722 1,079,266 242,043 11,645,945
Total accumulated
depreciation 146,547,471 6,199,621 308,364 152,438,728
Governmental Activity
capital assets – net 224,628,667 $ (4,403,058) $ 194,222 $ 220,031,387 $
Depreciation expense for governmental activities for the year ended April 30, 2014 was charged to functions
as follows:
1,856,695 $
3,115,971
137,625
898,890
190,440
6,199,621 $
Public safety
General government
Highways and streets
Sanitation
Culture and recreation
81
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
46 (Continued)
Balance Disposals Balance
May 1, 2013 Additions or Transfers April 30, 2014
Business-type activities
Capital assets not being depreciated:
Land 459,369 $ -$ -$ 459,369 $
Construction in progress - 921,811 - 921,811
Total capital assets not being
depreciated 459,369 921,811 - 1,381,180
Capital assets being depreciated:
Buildings 27,021,790 - - 27,021,790
Improvements other
than buildings 41,030,237 59,426 23,307 41,066,356
Machinery and equipment 4,559,962 202,306 14,427 4,747,841
Sanitary sewers and
related property 29,461,745 - - 29,461,745
Total capital assets being
depreciated 102,073,734 261,732 37,734 102,297,732
Less accumulated depreciation:
Buildings 10,586,117 1,003,570 - 11,589,687
Improvements other
than buildings 17,857,381 981,311 18,670 18,820,022
Machinery and equipment 2,629,925 237,612 14,427 2,853,110
Sanitary sewers and
related property 14,980,289 571,296 - 15,551,585
Total accumulated
depreciation 46,053,712 2,793,789 33,097 48,814,404
Capital assets – net 56,479,391 $ (1,610,246) $ 4,637 $ 54,864,508 $
82
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
47 (Continued)
Balance Balance
May 1, 2013 Additions Disposals April 30, 2014
Component Unit – Lake Forest Library
Capital assets not being depreciated:
Land 70,000 $ -$ -$ 70,000 $
Art 149,000 - - 149,000
Construction in progress - 140,066 - 140,066
Total capital assets not being
depreciated 219,000 140,066 - 359,066
Capital assets being depreciated:
Buildings 1,180,907 - - 1,180,907
Improvements other
than buildings 1,915,724 181,636 - 2,097,360
Machinery and equipment 3,697,067 340,293 313,851 3,723,509
Total capital assets being
depreciated 6,793,698 521,929 313,851 7,001,776
Less accumulated depreciation:
Buildings 607,490 23,338 - 630,828
Improvements other
than buildings 746,614 155,398 - 902,012
Machinery and equipment 2,117,110 346,755 313,851 2,150,014
Total accumulated
depreciation 3,471,214 525,491 313,851 3,682,854
Capital assets – net 3,541,484 $ 136,504 $ -$ 3,677,988 $
83
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
48 (Continued)
Note 7. Long-term Obligations
The City issues debt to finance various capital projects and other construction activities. The following is a
summary of the changes in long-term obligations of the City for the year ended April 30, 2014:
Amounts
Balance Balance due within
May 1, 2013 Additions Deductions April 30, 2014 one year
Governmental activities:
General obligation bonds 37,203,146 $ 9,715,000 $ (11,065,950) $ 35,852,196 $ 1,623,436 $
Premium on general obligation
bonds 225,662 26,093 (152,340) 99,415 -
Discount on general obligation
bonds (66,322) - 7,259 (59,063) -
Total general obligation bonds 37,362,486 9,741,093 (11,211,031) 35,892,548 1,623,436
Net OPEB obligation*201,480 - (443) 201,037 -
Compensated absences**1,778,131 2,321,977 (2,194,633) 1,905,475 100,000
Total governmental activities 39,342,097 $ 12,063,070 $ (13,406,107) $ 37,999,060 $ 1,723,436 $
Business-type activities:
General obligation bonds 21,060,000 $ -$ (1,815,000) $ 19,245,000 $ 1,847,000 $
Premium on general obligation
bonds 314,754 - (58,029) 256,725 -
Compensated absences 198,416 218,429 (207,582) 209,263 5,000
Total business-type activities 21,573,170 $ 218,429 $ (2,080,611) $ 19,710,988 $ 1,852,000 $
Component Unit - Lake Forest Library
Capital lease 88,720 $ -$ (31,433) $ 57,287 $ -$
Net OPEB obligation*8,370 3,842 - 12,212 -
Compensated absences 186,405 149,077 (162,199) 173,283 5,000
Total component unit -
Lake Forest Library 283,495 $ 152,919 $ (193,632) $ 242,782 $ 5,000 $
* OPEB obligations will be liquidated by the General Fund.
**Compensated absences will be liquidated by the applicable governmental funds (primarily the General,
Parks and Recreation, Senior Commission and Cemetery Funds) that account for the salaries and wages for
the related employees.
84
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
49 (Continued)
General obligation debt payable for the City as of April 30, 2014 consists of the following:
Governmental Activities:
General obligation bonds:
Special Service Area 25 Special Tax Bonds due in annual installments of
$25,000 to $75,000 through December 15, 2022; interest at 1.95%
to 2.95%, due semiannually on June 15 and December 15. Funded
by Debt Service Funds property tax levies. 585,000 $
Special Service Area 26 Special Tax Bonds due in annual installments of
$9,545 to $20,700 through December 15, 2022; interest at 2.50%
to 3.40%, due semiannually on June 15 and December 15. Funded
by Debt Service Funds property tax levies. 156,345
Special Service Area 29 Special Tax Bonds due in annual installments of
$76,192 to $150,611 through December 15, 2023; interest at 2.55%
to 3.65%, due semiannually on June 15 and December 15. Funded
by Debt Service Funds property tax levies. 1,235,851
2008 Series General Obligation Bonds due in annual installments of
$110,000 to $635,000 through December 15, 2027; interest at 3.375%
to 3.875%, due semiannually on June 15 and December 15. Funded
by Debt Service Funds property tax levies. 7,800,000
2009 Series General Obligation Bonds due in annual installments of
$160,000 to $280,000 through December 15, 2029; interest at 2% to 4.1%,
due semiannually on June 15 and December 15. Funded by Debt Service
Funds property tax levies. 3,195,000
2010 B Series General Obligation Bonds due in annual installments of
$540,000 to $860,000 through December 15, 2032, commencing
December 15, 2029; interest at 5.75%, due semiannually on June 15
and December 15. Funded by Debt Service Funds property tax levies. 3,000,000
2010 C Series General Obligation Bonds due in annual installments of
$195,000 to $490,000 through December 15, 2029; commencing
December 15, 2015; interest at 3.00% to 5.50%, due semiannually
on June 15 and December 15. Funded by Debt Service Funds
property tax levies.5,425,000
2011 A Series General Obligation Bonds due in annual installments of
$195,000 to $340,000 through December 15, 2015; interest at
1.5% to 2%, due semiannually on June 15 and December 15. Funded by
Debt Service Funds property tax levies. 535,000
2011 B Series General Obligation Bonds due in annual installments of
$208,000 to $523,000 through December 15, 2023; interest at
1% to 3%, due semiannually on June 15 and December 15. Funded by
Debt Service Funds property tax levies. 4,205,000
2013 Series General Obligation Bonds due in annual installments of
$100,000 to $1,125,000 through December 15, 2032; interest at
2% to 4%, due semiannually on June 15 and December 15.
Funded by Debt Service Funds property tax levies. 9,715,000
Total governmental activities 35,852,196 $
85
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
50 (Continued)
Business-type Activities
General obligation and revenue bonds:
Waterworks and Sewerage Fund:
2011 A Series General Obligation Bonds due in annual installments of
$120,000 to $140,000 through December 15, 2021; interest at
1.5% to 3%, due semiannually on June 15 and December 15. Funded by
Water and Sewer Fund revenues. 915,000 $
2011 B Series General Obligation Bonds due in annual installments of
$1,254,000 to $2,004,000 through December 15, 2024; interest at
2% to 3%, due semiannually on June 15 and December 15. Funded by
Water and Sewer Fund revenues. 17,441,500
Nonmajor Enterprise Fund:
2011 B Series General Obligation Bonds due in annual installments of
$78,000 to $100,000 through December 15, 2024; interest at
4% to 4.38%, due semiannually on June 15 and December 15.
Funded by Gold Course Fund revenues 888,500
Total Business-type Activities 19,245,000 $
Annual debt service requirements to maturity for general obligation bonds are as follows:
Years Principal Interest Principal Interest
2015 1,623,436 $ 1,400,599 $ 1,847,000 $ 468,528 $
2016 1,618,218 1,293,624 1,877,000 432,288
2017 1,568,336 1,250,042 1,902,000 395,398
2018 1,723,796 1,206,165 1,952,000 357,358
2019 1,869,625 1,155,188 1,987,000 308,870
2020-2024 11,153,785 4,792,323 9,680,000 764,691
2025-2029 8,765,000 2,901,131 - -
2030-2033 7,530,000 912,800 - -
Total 35,852,196 $ 14,911,872 $ 19,245,000 $ 2,727,133 $
Governmental activities Business-type activities
Refunding
On September 16, 2013 the City issued $9,715,000 of General Obligation Refunding Bonds Series 2013 in
order to fully refund $9,665,000 Series 2010A. In connection with this refunding, net proceeds of $9.741
million were deposited into an irrevocable trust with an escrow agent to provide for debt service payments on
the refunded portion of the bonds. As a result, the refunded portion of the bonds are considered defeased
and removed from the statement of net position (governmental activities) in 2014. As a result of the
refunding, the City increased its total debt service by approximately $4.4 million over the next 19 years. The
economic loss (difference between the present values of the debt service payments on the old and new debt)
is approximately $58 thousand.
86
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
51 (Continued)
Note 8. Capital Lease
The City of Lake Forest Public Library has entered into a lease agreement as lessee for financing technology
equipment to the Library. The lease is due in installments through its maturity on February 1, 2016 at an
annual interest rate of 1.0%. The lease agreement qualifies as a capital lease for accounting purposes and,
therefore, has been recorded at the present value of the future minimum lease payments as of the inception
date.
The assets acquired through the capital lease are as follows:
Lake Forest
Library
Assets:
Improvements other than buildings 96,529$
Less: accumulated depreciation (40,220)
Total 56,309$
The future minimum lease obligations and the net present value of these minimum lease payments as of
April 30, 2014 were as follows:
Lake Forest
Year Ending April 30 Library
2015 32,176$
2016 25,651
Less: Amount representing interest (540)
Present value of minimum lease payments 57,287$
Note 9. Retirement Fund Commitments
Illinois Municipal Retirement Fund
(a) Plan Description
The City contributes to the Illinois Municipal Retirement Fund (IMRF), a defined benefit pension plan,
which provides retirement, disability, annual cost of living adjustments, and death benefits to plan
members and beneficiaries. IMRF is an agent multiple-employer public retirement system that acts as
a common investment and administrative agent for local governments and school districts in Illinois.
All employees, except those covered by the police and fire pension plans, hired in positions that meet
or exceed the prescribed annual hourly standard, must be enrolled in IMRF as participating members.
Benefit provisions are established by statute and may only be changed by the General Assembly of
the State of Illinois.
87
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
52 (Continued)
IMRF issues a publicly available financial report that includes financial statements and required
supplementary information. That report may be obtained on-line at www.imrf.org or by writing to the
Illinois Municipal Retirement Fund, 2211 York Road, Suite 500, Oak Brook, Illinois 60523.
(b) Funding Policy
As set by statute, employer regular plan members are required to contribute 4.50 percent of their
annual covered salary. The statutes require employers to contribute the amount necessary, in addition
to member contributions, to finance the retirement coverage of its own employees. The employer
contribution rates for calendar year 2014 and 2013 were 13.73 percent and 13.36 percent of annual
covered payroll, respectively. The City also contributes for disability benefits, death benefits and
supplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for
disability and death benefits are set by the IMRF Board of Trustees, while the supplemental retirement
benefits rate is set by statute.
(c) Annual Pension Cost
The City’s annual pension cost of $2,175,340 for the regular plan was equal to the City’s required and
actual contributions.
(d) Trend Information
Fiscal Annual Percentage
Year pension of APC Net pension
ending cost (APC) contributed obligation
2014 2,175,340 $ 100 % -$
2013 1,895,967 100 -
2012 1,893,946 100 -
The required contributions for 2014 and 2013 were determined as part of the December 31, 2012 and
2011 actuarial valuations using the entry age normal actuarial cost method. The actuarial assumptions
included (a) 7.5 percent investment rate of return (net of administrative and direct investment
expenses), (b) projected salary increases of 4.00% a year, attributable to inflation, (c) additional
projected salary increases ranging from 0.4% to 10% per year depending on age and service,
attributable to seniority/merit, and (d) post retirement benefit increases of 3% annually. The actuarial
value of the City’s regular plan assets was determined using techniques that smooth the effects of
short-term volatility in the market value of investments over a five-year period with a 20% corridor
between the actuarial and market value of assets. The plan’s unfunded actuarial accrued liability is
being amortized as a level percentage of projected payroll on an open 30 year basis.
(e) Funded Status and Funding Progress
As of December 31, 2013, the most recent actuarial valuation date, the regular plan was 73.92 percent
funded. The actuarial liability for benefits was $46,177,328 and the actuarial value of assets was
$34,134,843 resulting in an unfunded actuarial accrued liability (UAAL) of $12,042,485. The covered
payroll (annual payroll of active employees covered by the plan) was $15,763,304 and the ratio of the
UAAL to the covered payroll was 76 percent.
The schedule of funding progress, presented as RSI following the notes to the financial statements,
presents multi-year trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liability for benefits.
88
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
53 (Continued)
Police Pension and Firefighters’ Pension Plans
(a) Plan Descriptions
The City contributes to two single-employer defined benefit pension plans: the Police Pension Plan and
the Firefighters’ Pension Plan (Plans). Each plan provides retirement, disability, and death benefits,
and annual cost-of-living adjustments to plan members and beneficiaries. Sworn Police and Fire
personnel are covered by the Plans. Although these are single-employer pension plans, the defined
benefits and employee and employer contribution levels are governed by Illinois Compiled Statutes
and may be amended only by the Illinois legislature. The City accounts for the Plans as Pension Trust
Funds. The City does not, however, separately issue financial reports for the Plans.
Membership of each plan consisted of the following at April 30, 2014:
Police Firefighters'
Pension Pension
Retirees and beneficiaries currently receiving benefits 36 33
Terminated employees entitled to but not yet
receiving benefits 3 3
Active plan members 39 32
Total 78 68
(b) Summary of Significant Accounting Policies and Plan Asset Matters
Basis of Accounting – The financial statements are prepared using the accrual basis of accounting.
Employee and employer contributions are recognized when due, pursuant to formal commitments, as
well as statutory or contractual requirements. Benefits and refunds are recognized when due and
payable in accordance with the terms of each plan. Administrative costs are financed through
investment earnings.
Method Used to Value Investments – Investments are reported at fair value. Short-term investments
are reported at cost, which approximates fair value. Securities traded on a national exchange are
valued at the last reported sales price. Investments that do not have an established market are
reported at estimated fair value.
Significant Investments – The Police Pension Fund has $1,803,017 invested in FNMA securities,
which represents 6.8% of plan net position at April 30, 2014. The Firefighters’ Pension Fund has
$1,537,822 invested in FNMA securities, which represents 5.0% of plan net position at April 30, 2014.
(c) Funding Policy and Annual Pension Cost
Covered police pension eligible employees are required to contribute 9.91% of their base salary to the
Police Pension Plan. If an employee leaves covered employment with less than 20 years of service,
accumulated employee contributions may be refunded without accumulated interest. The City is
required to contribute the remaining amounts necessary to finance the plan as actuarially determined
by an enrolled actuary.
89
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
54 (Continued)
By the year 2033, the City’s contributions must accumulate to the point where the past service cost for
the Police Pension Plan is fully funded. Actuarial valuations are performed annually.
Covered firefighters’ pension eligible employees are required to contribute 9.455% of their salary to the
Firefighters’ Pension Plan. If an employee leaves covered employment with less than 20 years of
service, accumulated employee contributions may be refunded without accumulated interest. The City
is required to contribute the remaining amounts necessary to finance the plan as actuarially
determined by an enrolled actuary. By the year 2033, the City’s contributions must accumulate to the
point where the past service cost for the Firefighters’ Pension Plan is fully funded. Actuarial valuations
are performed annually.
The City’s annual pension cost and net pension asset for the Police and Firefighters’ Pension Plans for
fiscal year 2014 were as follows:
Police Firefighters'
Pension Pension
Annual required contribution 1,384,307 $ 894,384 $
Interest on net pension obligation (73,234) (46,684)
Adjustment to annual required contribution 59,117 37,686
Annual pension cost 1,370,190 885,386
Contributions made 1,563,964 1,090,695
Increase in net pension asset 193,774 205,309
Net pension asset at April 30, 2013 976,452 622,459
Net pension asset at April 30, 2014 1,170,226 $ 827,768 $
The net pension assets are reported by the City in the government-wide Statement of Net Position.
Other related information is as follows:
Police Pension Firefighters' Pension
Contribution rates - City 44.45%36.30%
Contribution rates - plan members 9.91%9.46%
Actuarial valuation date 4/30/14 4/30/14
Actuarial cost method Entry Age Entry Age
Amortization method Level Percentage Level Percentage
of pay, closed of pay, closed
Remaining amortization period 19 years 19 years
Asset valuation method Market Market
Actuarial assumptions:
Investment rate of return 7.00%7.00%
Projected salary increases*5.50%5.50%
*Includes inflation at 3.00%3.00%
Cost-of-living adjustments 3.00% per year 3.00% per year
90
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
55 (Continued)
(d) Plan Financial Statements
Following are condensed financial statements for the Police and Firefighters’ Pension Plans as of and
for the year ended April 30, 2014:
Police Firefighters'
Pension Pension
Assets:
Cash and cash equivalents 272,211 $ 1,183,786 $
Investments 26,129,650 29,421,194
Other receivables 81,760 91,873
Prepaid expenses 8,017 4,273
Total assets 26,491,638 30,701,126
Liabilities:
Accounts payable 3,895 5,917
Net position:
Held in trust for pension benefits 26,487,743 $ 30,695,209 $
Additions:
Employer contributions 1,563,964 $ 1,090,695 $
Employee contributions 345,616 291,366
Interest income 539,835 677,903
Net appreciation in fair value of investments 1,943,913 1,553,038
Less investment expenses (116,763) (87,786)
Total additions 4,276,565 3,525,216
Deductions:
Pension benefits and refunds 1,988,433 1,718,352
Administrative expenses 4,000 4,000
Total deductions 1,992,433 1,722,352
Changes in net position 2,284,132 1,802,864
Net position held in trust at beginning of year 24,203,611 28,892,345
Net position held in trust at end of year 26,487,743 $ 30,695,209 $
Statement of Fiduciary Net Position
Statement of Changes in Fiduciary Net Position
91
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
56 (Continued)
(e) Three Year Trend Information
Annual Net
Year Pension Pension
Ending Cost (APC)Asset
Police Pension: 4/30/14 1,370,190 $ 114.1 % 1,170,226 $
4/30/13 1,361,832 110.3 976,452
4/30/12 1,360,349 111.4 836,209
Firefighters' Pension:
4/30/14 885,386 $ 123.2 % 827,768 $
4/30/13 886,429 115.8 622,459
4/30/12 855,082 115.0 482,543
Contributed
of APC
Percentage
(f) Funded Status and Funding Progress – Pension Trust Funds
The funded status of the Police and Firefighters’ Pension Plans as of April 30, 2014, the most recent
actuarial valuation date, is as follows:
(1)(2)(2)–(1)
Actuarial Actuarial Accrued Unfunded (1)/(2)(3)
Value of Liability (AAL) AAL Funded Covered
Assets Entry Age (UAAL) Ratio Payroll
Police 26,487,743 $ 47,103,353 $ 20,615,610 $ 56.2 % 3,518,797 $ 585.9 %
Firefighters' 30,695,209 40,231,243 9,536,034 76.3 3,004,889 317.4
Payroll
((2-1)/3)
UAAL as a
Percentage of
Covered
The schedule of funding progress, presented as required supplementary information (RSI) following
the notes to the financial statements, present multi-year trend information about whether the actuarial
values of plan assets are increasing or decreasing over time relative to the AAL’s for benefits. The
projection of benefits for financial reporting does not explicitly incorporate the potential effects of legal
or contractual funding limitations.
Note 10. Other Post Employment Benefits (OPEB)
(a) Plan Description
In addition to providing the pension benefits described in Note 9, the City and Library (hereinafter City)
provide post-employment health care benefits (OPEB) for retired employees. Hereinafter, the medical
and dental plan benefits offered are referred to as the “Plan.” The Plan offers several medical and
dental insurance benefit options to eligible retirees and their dependents. The benefits, benefit levels,
employee contributions and employer contributions are governed by the City Council and can only be
amended by the City Council. The Plan is not accounted for as a trust fund and an irrevocable trust has
not been established. The City does not issue a Plan financial report.
92
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
57 (Continued)
(b) Funding Policy
The contribution requirements of plan members and the City are established and may be amended by
the City Council and are detailed in the various plan benefit booklets provided to employees. The
required contribution is based on projected pay-as-you-go financing requirements. For fiscal year 2014,
the City contributed $147,074, representing current premiums.
(c) Annual OPEB Cost and Net OPEB Obligation
The City’s and Library’s annual other postemployment benefit (OPEB) cost (expense) is calculated
based on the annual required contribution of the employer (ARC), an amount actuarially determined in
accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if
paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded
actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table
shows the components of the annual OPEB cost for the year, the amount actually contributed to the
plan, and changes in the net OPEB obligation to the Plan:
City Library
Annual required contribution (ARC) 145,288 $ 3,786 $
Interest on net OPEB obligation 8,059 335
Adjustment to annual required contribution (6,716) (279)
Annual OPEB cost 146,631 3,842
Contribution made (147,074) -
Increase (decrease) in net OPEB obligation (443) 3,842
Net OPEB obligation beginning of year 201,480 8,370
Net OPEB obligation end of year 201,037 $ 12,212 $
The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for 2014, 2013 and 2012 were as follows:
Percentage
Annual of Annual
Fiscal Year OPEB OPEB Cost Net OPEB
Ending Cost Contributed Obligation
City:
04/30/2014 146,631 $ 100.3% 201,037 $
04/30/2013 96,080 66.1% 201,480
04/30/2012 98,050 64.8% 168,888
Library:
04/30/2014 3,842 $ 0.0% 12,212 $
04/30/2013 2,764 0.0% 8,370
04/30/2012 2,863 0.0% 5,606
93
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
58 (Continued)
(d) Funded Status and Funding Progress
As of April 30, 2013 (latest actuarial valuation date), the City’s plan was 100% unfunded. The
actuarial accrued liability for benefits was $2,363,491, and the actuarial value of assets was $0
(zero), resulting in an unfunded actuarial accrued liability (UAAL) of $2,363,491. The covered payroll
(annual payroll of active employees covered by the plan) was $16,930,261, and the ratio of the
UAAL to the covered payroll was 13.96 percent. As of the same date, the Library’s plan was 100%
unfunded. The actuarial accrued liability for benefits was $34,113, and the actuarial value of assets
was $0 (zero), resulting in an unfunded actuarial accrued liability (UAAL) of $34,113. The covered
payroll (annual payroll of active employees covered by the plan) was $1,306,979, and the ratio of
the UAAL to the covered payroll was 2.61 percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts
determined regarding the funded status of the plan and the annual required contributions of the
employer are subject to continual revision as actual results are compared with past expectations
and new estimates are made about the future. The schedule of funding progress, presented as
required supplementary information following the notes to the financial statements, presents
multiyear trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
(e) Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan
as understood by the employer and the plan members) and include the types of benefits provided at
the time of each valuation and the historical pattern of sharing of benefit costs between the
employer and plan members to that point. The actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial value of assets, consistent with the long-term perspective of the
calculations.
In the April 30, 2013 actuarial valuation, the entry age actuarial cost method was used. The actuarial
assumptions included a 4.0 percent investment rate of return (net of administrative expenses),
which is a blended rate of the expected long-term investment returns on plan assets and on the
employer's own investments calculated based on the funded level of the plan at the valuation date,
and an annual healthcare cost trend rate of 8 percent initially, reduced by decrements to an ultimate
rate of 6 percent ultimately. Both rates included a 3.0 percent inflation assumption. The actuarial
value of assets was determined using market value. The UAAL is being amortized as a level
percentage of projected payroll on an open basis. The remaining amortization period at April 30,
2014 was 30 years.
94
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
59 (Continued)
Note 11. Joint Ventures
A summary of the City’s joint ventures is as follows:
(a) Solid Waste Agency of Lake County
The City is a member of the Solid Waste Agency of Lake County, Illinois (the Agency), a municipal joint
action agency composed of 41 municipalities, Great Lakes Naval Training Center and Lake County.
The Agency was formed in 1991. The purpose of the Agency is to implement a regional approach to
solid waste management which addresses the economic, political and environmental issues in Lake
County.
The Agency is governed by a Board of Directors consisting of one official elected by each member.
Each director has one vote. The Board of Directors determines the general policy of the Agency,
makes all appropriations, approves contracts for solid waste disposal; adopts resolutions providing for
the issuance of debt by the Agency; adopts by-laws, rules, and regulations; and exercises such powers
and performs such duties as may be prescribed in the Agency agreement or the by-laws. The
Executive Committee of the Agency consists of nine members of the Board of Directors elected by the
Board. Each member is entitled to one vote on the committee. The Executive Committee may take any
action not specifically reserved on the Board of Directors by the Act, the Agency agreement, or the by-
laws.
The City has no explicit and measurable equity interest in the Agency, although there does exist a
residual interest in the Agency’s assets upon dissolution of the joint venture. The City has an ongoing
financial responsibility for its share of the Agency’s liabilities. Each participant is liable for their share of
any of the Agency’s contracts entered into while bound by the intergovernmental agreement until those
contracts are paid off. To obtain the Agency’s financial statements, contact the Solid Waste Agency of
Lake County, Illinois at 1311 N. Estes Street, Gurnee, Illinois 60031.
(b) Northern Suburban Special Recreation Association (NSSRA)
The City is a member of the Northern Suburban Special Recreation Association (NSSRA), which was
organized by ten organizations in order to provide special recreation programs to the physically and
mentally handicapped within their districts and to share the expenses of such programs on a
cooperative basis. Each member’s 1999 contribution was determined based upon the ratio of the
members’ assessed valuations.
The NSSRA is governed by a Board of Directors which consists of one representative from each
participating organization. Each Director has an equal vote. The representatives of NSSRA are
appointed by the Board of Directors. The Board of Directors is the governing body of the NSSRA and
is responsible for establishing all major policies and changes therein and for approving all budgets,
capital outlay, programming, and master plans.
The City has no explicit and measurable equity interest in the NSSRA, although there does exist a
residual interest in the NSSRA’s assets upon dissolution of the joint venture. The City has an ongoing
financial responsibility for its share of the NSSRA’s liabilities. Each participant is liable for their share of
any of the NSSRA’s contracts entered into while bound by the intergovernmental agreement until those
contracts are paid off.
To obtain NSSRA’s financial statements, contact Northern Suburban Special Recreation Association at
3105 MacArthur Blvd., Northbrook, Illinois 60062.
95
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
60 (Continued)
Note 12. Risk Management
The City is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City accounts for its risk of loss in the
Liability Insurance Fund through payments to the Intergovernmental Risk Management Agency.
(a) Intergovernmental Risk Management Agency (IRMA)
The City participates in the Intergovernmental Risk Management Agency (IRMA). IRMA is an
organization of municipalities and special districts in Northeastern Illinois which have formed an
association under the Illinois Intergovernmental Cooperation Statute to pool their risk management
needs. The agency administers a mix of self-insurance and commercial insurance coverages;
property/casualty and workers’ compensation claim administration/litigation management services;
unemployment claim administration; extensive risk management/loss control consulting and training
programs; and a risk information system and financial reporting service for its members.
The City’s payments to IRMA are displayed on the financial statements as expenditures/expenses in
appropriate funds. The City assumes the first $25,000 of each occurrence, and IRMA has a mix of self-
insurance and commercial insurance at various amounts above that level.
Each member appoints one delegate, along with an alternate delegate, to represent the member on
the Board of Directors. The government does not exercise any control over the activities of IRMA
beyond its representation on the Board of Directors.
Initial contributions are determined each year based on the individual member’s eligible revenue as
defined in the by-laws of IRMA and experience modification factors based on past member loss
experience. Members have a contractual obligation to fund any deficit of IRMA attributable to a
membership year during which they were a member. Supplemental contributions may be required to
fund these deficits.
Beginning of Claims and End of
Fiscal Year Changes in Claim Fiscal Year
Liability Estimates Payments Liability
2012-2013 63,786 $ 376,262 $ 232,401 $ 207,647 $
2013-2014 207,647 287,443 346,109 148,981
(b) City of Lake Forest Medical and Dental Plan
The City established the City of Lake Forest Medical and Dental Plan, a self-insurance plan providing
health insurance for all employees of the City, effective January 1, 2000. Administration of the Plan is
provided by Professional Benefit Administrators, Inc. (an outside agency). Liabilities are reported
when it is probable that a loss has been incurred and the amount of the loss can be reasonably
estimated. An excess coverage insurance policy covers total claims in excess of $100,000 per
participant in a plan year. Liabilities include all amounts for claims, including incremental costs that
have been incurred but not reported (IBNR) and are reported in the Self Insurance Fund (internal
service fund).
96
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2014
61 (Concluded)
Changes in the balances of claims liabilities for the years ended April 30, 2014 and 2013 are as
follows:
Beginning of End of
Fiscal Year Changes in Claim Fiscal Year
Liability Estimates Payments Liability
2012-2013 471,785 $ 3,878,466 $ 3,989,592 $ 360,659 $
2013-2014 360,659 4,440,345 4,272,355 528,649
The City has not had significant reductions in insurance coverage during the year nor did settlements
exceed insurance coverage in any of the last three years.
Note 13. Restatement for Implementation of New Accounting Standard
As shown in the following table, the financial statements of the City have been restated for the
implementation of GASB Statement No. 65, Items Previously Recorded as Assets and Liabilities (GASB 65).
The Statement of Net Position of the City included deferred charges within the Governmental Activities of the
City in previous years. However, pursuant to GASB 65 applicable debt issuance costs should now be
recognized in the period incurred as an expense. Therefore, the City restated the Net Position of the
Governmental Activities, Business-Type Activities, and Enterprise Funds of the Primary Government’s
financial statements as follows.
Governmental
Activities*
Business-Type
Activities*
Major Enterprise
Waterworks and
Sewerage Fund
Nonmajor
Enterprise
Deerpath Golf
Course Fund
Net Position, April 30, 2013 224,691,448$ 45,958,608$ 44,209,237$ 1,029,049$
Implementation of GASB 65 (180,420) (79,108) (75,615) (3,493)
Net Position, April 30, 2013 as restated 224,511,028$ 45,879,500$ 44,133,622$ 1,025,556$
* The Net Position for Governmental Activities and Business-Type Activities includes the effect of allocating
the net positions of the internal service funds.
Note 14. Commitments and Contingencies
As of April 30, 2014 management knows of no claim, asserted or unasserted, which if asserted and paid,
would have a materially adverse effect on the financial position of the various funds of the City.
The City has outstanding construction contracts with contractors totaling $290,364 at April 30, 2014.
97
REQUIRED SUPPLEMENTARY INFORMATION
98
62
CITY OF LAKE FOREST, ILLINOIS Exhibit B-1
General Fund
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Taxes:
Property 16,729,903 $ 16,683,102 $ (46,801) $
Other 8,997,170 9,663,772 666,602
Grants and contributions - 10,215 10,215
Charges for services 2,771,395 3,065,786 294,391
Licenses and permits 2,351,339 2,477,338 125,999
Fines and forfeitures 362,500 297,005 (65,495)
Investment income 66,256 57,559 (8,697)
Miscellaneous revenue 586,915 709,054 122,139
Total revenues 31,865,478 32,963,831 1,098,353
Expenditures:
Current:
General government 10,143,052 9,184,712 958,340
Highways and streets 2,301,315 2,293,840 7,475
Sanitation 2,237,607 2,212,166 25,441
Public safety 14,349,645 14,074,949 274,696
Capital outlay - 11,490 (11,490)
Contingency 3,132,944 - 3,132,944
Total expenditures 32,164,563 27,777,157 4,387,406
Excess (deficiency) of revenues
over expenditures (299,085) 5,186,674 5,485,759
Other financing uses:
Transfers out (2,297,825) (2,325,306) (27,481)
Total other financing uses (2,297,825) (2,325,306) (27,481)
Net change in fund balance (2,596,910) $ 2,861,368 5,458,278 $
Fund balance – beginning of year 14,753,592
Fund balance – end of year 17,614,960 $
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
99
63
CITY OF LAKE FOREST, ILLINOIS Exhibit B-2
Parks and Recreation Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Taxes:
Property 5,125,039 $ 5,120,026 $ (5,013) $
Other 18,500 42,497 23,997
Grants and contributions 101,110 123,446 22,336
Charges for services 3,184,507 2,999,023 (185,484)
Investment income 26,460 18,809 (7,651)
Other 34,303 4,672 (29,631)
Total revenues 8,489,919 8,308,473 (181,446)
Expenditures:
Current:
Culture and recreation 8,204,160 7,811,843 392,317
Contingency 898,362 - 898,362
Capital outlay 587,462 408,056 179,406
Total expenditures 9,689,984 8,219,899 1,470,085
Excess (deficiency) of revenues
over expenditures (1,200,065) 88,574 1,288,639
Other financing sources (uses):
Proceeds from sales of equipment - 1,219 1,219
285,000 289,116 4,116
(31,000) (96,000) (65,000)
Total other financing sources (uses)254,000 194,335 (59,665)
Net change in fund balance (946,065) $ 282,909 1,228,974 $
Fund balance – beginning of year 2,471,468
Fund balance – end of year 2,754,377 $
Required Supplementary Information
Transfers in
Transfers out
100
64
Exhibit B-3
CITY OF LAKE FOREST, ILLINOIS
Required Supplementary Information –
Schedules of Funding Progress
Last Six Fiscal Years
Unfunded
Actuarial (assets in
Actuarial accrued excess of) Percentage
Actuarial value of liability (AAL) AAL Funded Covered of covered
valuation assets Entry Age (UAAL) ratio payroll payroll
date (a) (b) (b-a) (a/b) (c) ((b-a)/c)
Illinois Municipal Retirement Fund (1):
12/31/2013 34,134,843 $ 46,177,328 $ 12,042,485 $ 73.9 % 15,763,304 $ 76.4 %
12/31/2012 27,530,649 42,513,765 14,983,116 64.8 15,490,621 96.7
12/31/2011 27,857,081 44,405,755 16,548,674 62.7 16,261,976 101.8
12/31/2010 39,595,430 50,163,288 10,567,858 78.9 16,762,932 63.0
12/31/2009 38,670,158 49,164,282 10,494,124 78.7 17,499,712 60.0
12/31/2008 35,762,935 46,155,124 10,392,189 77.5 17,062,328 60.9
Police Pension Plan:
04/30/2014 26,487,743 47,103,353 20,615,610 56.2 3,518,797 585.9
04/30/2013 24,203,611 42,192,380 17,988,769 57.4 3,170,518 567.4
04/30/2012 22,131,376 39,409,677 17,278,301 56.2 3,359,679 514.3
04/30/2010 19,379,115 36,428,208 17,049,093 53.2 3,322,493 513.1
04/30/2009 16,793,784 35,110,838 18,317,054 47.8 3,283,760 557.8
04/30/2008 19,004,088 32,815,313 13,811,225 57.9 3,162,441 436.7
Firefighters' Pension Plan:
04/30/2014 30,695,209 40,231,243 9,536,034 76.3 3,004,889 317.4
04/30/2013 28,892,345 35,706,156 6,813,811 80.9 3,049,732 223.4
04/30/2012 26,899,022 33,789,869 6,890,847 79.6 2,941,767 234.2
04/30/2010 23,612,253 30,523,996 6,911,743 77.4 2,644,320 261.4
04/30/2009 21,579,941 29,497,144 7,917,203 73.2 2,926,591 270.5
04/30/2008 22,913,950 27,739,010 4,825,060 82.6 2,855,889 169.0
(1)Includes City and Library employees. On a market value basis, the actuarial value of assets as of December 31, 2013 is
$43,560,274. On a market basis, the funded ratio would be 94.33%. The actuarial value of assets and accrued liability
cover active and inactive members who have service credit with the City. They do not include amounts for retirees. The
actuarial accrued liability for retirees is 100% funded.
101
65
Exhibit B-4
CITY OF LAKE FOREST, ILLINOIS
Required Supplementary Information – Schedules of Employer Contributions
Last Six Fiscal Years
Police Pension Plan
Annual
Fiscal Employer required Percentage
Year Contributions contribution contributed
4/30/14 1,563,964 $ 1,384,307 $ 113.0 %
4/30/13 1,502,075 1,375,906 109.2
4/30/12 1,515,074 1,372,431 110.4
4/30/11 1,412,730 1,405,652 100.5
4/30/10 1,128,592 1,128,050 100.0
4/30/09 1,038,121 1,025,521 101.2
Firefighters' Pension Plan
Annual
Fiscal Employer required Percentage
Year Contributions contribution contributed
4/30/14 1,090,695 $ 894,384 $ 121.9 %
4/30/13 1,026,345 894,551 114.7
4/30/12 983,298 862,452 114.0
4/30/11 960,850 954,946 100.6
4/30/10 810,129 761,978 106.3
4/30/09 701,472 662,323 105.9
102
66
Exhibit B-5
CITY OF LAKE FOREST, ILLINOIS
Required Supplementary Information
Other Post-Employment Benefits
Schedule of Funding Progress - City UAAL
Unfunded as a
Actuarial Actuarial Percentage
Value Actuarial Accrued of Annual
Actuarial of Accrued Liability Funded Covered Covered
Valuation Assets Liability (UAAL) Ratio Payroll Payroll
Date (a) (b) (b) - (a) (a)/(b) (c) ((b - a) / c)
04/30/2013 -$ 2,363,491 $ 2,363,491 $ -$ % 16,930,261 $ 13.96 %
04/30/2011 - 1,495,528 1,495,528 - 19,037,921 7.86
04/30/2009 - 1,552,739 1,552,739 - 19,542,175 7.95
Schedule of Funding Progress - Library UAAL
Unfunded as a
Actuarial Actuarial Percentage
Value Actuarial Accrued of Annual
Actuarial of Accrued Liability Funded Covered Covered
Valuation Assets Liability (UAAL) Ratio Payroll Payroll
Date (a) (b) (b) - (a) (a)/(b) (c) ((b - a) / c)
04/30/2013 -$ 34,113 $ 34,113 $ -$ % 1,306,979 $ 2.61 %
04/30/2011 - 22,590 22,590 - 1,246,633 1.81
Schedule of Employer Contributions - City
Actuarial
Valuation Employer Required Percentage
Date Contributions Contribution Contributed
04/30/2014 147,074 $ 145,288 $ 101.2 %
04/30/2013 63,488 94,954 66.9
04/30/2012 63,488 94,954 66.9
04/30/2011 63,488 89,201 71.2
04/30/2010 22,001 87,986 25.0
04/30/2009 45,358 87,986 51.6
Schedule of Employer Contributions - Library
Actuarial
Valuation Employer Required Percentage
Date Contributions Contribution Contributed
04/30/2014 -$ 3,786 $ -%
04/30/2013 - 2,727 -
04/30/2012 - 2,727 -
04/30/2011 - 2,743 -
Information is presented for as many years as is available.
The City conducts a full actuarial valuation for odd fiscal years and a limited valuation update for even years.
The City implemented GASB Statement No. 45 in fiscal year 2009.
103
CITY OF LAKE FOREST, ILLINOIS
Note to Required Supplementary Information
April 30, 2014
67
Note 1. Budgetary Basis of Accounting
Budgets for the General and major special revenue fund are adopted on a basis of accounting consistent with
accounting principles generally accepted in the United States of America (GAAP).
104
COMBINING FINANCIAL STATEMENTS
AND OTHER SCHEDULES
105
OTHER GOVERNMENTAL FUNDS
Nonmajor Special Revenue Funds
Asset Forfeiture Fund
The Asset Forfeiture Fund accounts for revenues received from drug arrests (convicted property). Used solely
for drug prevention programs administrated by the Lake Forest Police Department.
Foreign Fire Insurance Tax Fund
The Foreign Fire Insurance Tax Fund accounts for revenues received from the 2% tax on fire insurance
companies. Administered by members of the Fire Department to benefit the Fire Department.
Emergency Telephone Fund
The Emergency Telephone Fund accounts for the operations and maintenance of the emergency 911 telephone
system. Financing is provided by a specific monthly surcharge on customer telephone bills.
Parks and Public Land Fund
The Parks and Public Land Fund accounts for the revenues received from grants, contributions and the
collection of open space fees. Such revenues are to be used to purchase or improve land.
Motor Fuel Tax Fund
The Motor Fuel Tax Fund accounts for the revenues received from the State of Illinois for the local share of the
motor fuel tax collections.
General Cemetery Fund
The General Cemetery Fund accounts for the operations of the cemetery commission. Financing is provided by
the proceeds from cemetery lot sales, user charges, and donations.
Senior Resources Commission Fund
The Senior Resources Commission Fund accounts for gifts, activity fees and investments used to finance senior
citizens’ programs and activities.
Housing Trust Fund
The Housing Trust Fund accounts for half of the revenues received from the demolition tax. Revenues will be
used for affordable housing projects in Lake Forest.
Elawa Farm Fund
The Elawa Farm Fund accounts for the grants and activity fees used for the operating expenses of this historic
farm complex.
106
Nonmajor Debt Service Fund
Debt Service Fund
This fund accounts for the principal and interest currently due on general obligation bonds.
Major Capital Projects Funds
Capital Improvements Fund
The Capital Improvements Fund accounts for revenues to be used to fund city building and infrastructure
projects.
Nonmajor Capital Projects Funds
Route 60 Bridge Improvements Fund
The Route 60 Bridge Improvements Fund accounts for the pledged funds from various corporations and local
governments to be used for the widening of the Route 60 Bridge over I-94.
Route 60 Intersection Improvements Fund
The Route 60 Intersection Improvements Fund accounts for the monies received from corporations and state
and federal grants to be used for the improvements to be made to the intersection at Route 60 and Field Drive.
Route 60/Fitzmorris Improvements Fund
The Route 60/Fitzmorris Improvements Fund accounts for the funds to be used to construct permanent signals
and intersection improvements at Field Court and Route 60.
107
68
CITY OF LAKE FOREST, ILLINOIS
Combining Balance Sheet
Nonmajor Governmental Funds
April 30, 2014
Asset Foreign Fire Emergency Parks and
Forfeiture Insurance Telephone Public Land
Assets Fund Tax Fund Fund Fund
Cash and cash equivalents 100,541 $ 6,536 $ 327,616 $ 265,829 $
Investments - 206,616 - -
Receivables (net of allowance for
uncollectibles):
Property taxes - - - -
Other - - 56,523 175,000
Total receivables - - 56,523 175,000
Due from other governments - - - -
Due from fiduciary funds - - - -
Total assets 100,541 $ 213,152 $ 384,139 $ 440,829 $
Liabilities
Liabilities:
Accounts payable -$ -$ 8,312 $ -$
Accrued liabilities - - 1,710 -
Deposits - - - -
Total liabilities - - 10,022 -
Property tax levies intended to finance FY15 - - - -
Unavailable grants and contributions - - - 175,000
Total deferred inflows of resources - - - 175,000
Fund balances:
Restricted:
Culture and recreation - - - 265,829
Highways and streets - - - -
Public safety 100,541 213,152 374,117 -
Cemetery purposes - - - -
Affordable housing - - - -
Debt service - - - -
Assigned
Capital projects - - - -
Total fund balances 100,541 213,152 374,117 265,829
Total liabilities, deferred inflows
of resources, and fund balances 100,541 $ 213,152 $ 384,139 $ 440,829 $
Fund Balances:
Deferred Inflows of Resources
Special Revenue Funds
108
69
Debt Service
Motor Senior Funds
Fuel General Resources Housing Debt
Tax Cemetery Commission Trust Service
Fund Fund Fund Fund Fund
1,310,866 $ 469,966 $ 89,365 $ 782,934 $ 1,698,874 $
- 3,867,612 - - -
- - - - 2,180,325
23,498 1,993 22,091 - -
23,498 1,993 22,091 - 2,180,325
35,719 - - - -
- 118,660 - - -
1,370,083 $ 4,458,231 $ 111,456 $ 782,934 $ 3,879,199 $
4,263 $ 7,527 $ 17,183 $ -$ -$
- 4,970 7,852 - -
- - - 22,000 -
4,263 12,497 25,035 22,000 -
- - - - 2,180,325
23,498 - - - -
23,498 - - - 2,180,325
- - 86,421 - -
1,342,322 - - - -
- - - - -
- 4,445,734 - - -
- - - 760,934 -
- - - - 1,698,874
- - - - -
1,342,322 4,445,734 86,421 760,934 1,698,874
1,370,083 $ 4,458,231 $ 111,456 $ 782,934 $ 3,879,199 $
(Continued)
Special Revenue Funds
Exhibit C-1
109
70
Route 60 Route 60 Total
Bridge Intersection Nonmajor
Improvements Improvements Governmental
Assets Fund Fund Funds
Cash and cash equivalents 1,032,220 $ 417,064 $ 6,501,811 $
Investments - - 4,074,228
Receivables (net of allowance for
uncollectibles):
Property taxes - - 2,180,325
Other - - 279,105
Total receivables - - 2,459,430
Due from other governments - - 35,719
Due from fiduciary funds - - 118,660
Total assets 1,032,220 $ 417,064 $ 13,189,848 $
Liabilities and Fund Balances
Liabilities:
Accounts payable -$ -$ 37,285 $
Accrued liabilities - - 14,532
Deposits - - 22,000
Total liabilities - - 73,817
Property tax levies intended to finance FY15 - - 2,180,325
Unavailable grants and contributions - - 198,498
Total deferred inflows of resources - - 2,378,823
Fund balances:
Restricted:
Culture and recreation - - 352,250
Highways and streets - - 1,342,322
Public safety - - 687,810
Cemetery purposes - - 4,445,734
Affordable housing - - 760,934
Debt service - - 1,698,874
Assigned
Capital projects 1,032,220 417,064 1,449,284
Total fund balances 1,032,220 417,064 10,737,208
Total liabilities, deferred inflows
of resources, and fund balances 1,032,220 $ 417,064 $ 13,189,848 $
Deferred Inflows of Resources
Capital Projects Funds
Exhibit C-1 (Cont.)
Combining Balance Sheet
Nonmajor Governmental Funds
April 30, 2014
CITY OF LAKE FOREST, ILLINOIS
110
71
CITY OF LAKE FOREST, ILLINOIS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended April 30, 2014
Asset Foreign Fire Emergency Parks and
Forfeiture Insurance Telephone Public Land
Fund Tax Fund Fund Fund
Revenues:
Taxes:
Property -$ -$ -$ -$
Other - - - -
Intergovernmental revenues 10,698 - - -
Grants and contributions - - - 50,000
Charges for services - 102,611 270,626 31,335
Investment income 406 103 1,027 1,307
Miscellaneous revenue - - - -
Total revenues 11,104 102,714 271,653 82,642
Expenditures:
Current:
General government - - - -
Culture and recreation - - - -
Public safety - 61,808 162,826 -
Capital outlay 9,544 - - 229,808
Debt service:
Principal - - - -
Interest - - - -
Total expenditures 9,544 61,808 162,826 229,808
Excess (deficiency) of revenues
over expenditures 1,560 40,906 108,827 (147,166)
Proceeds from sales of capital assets - - - -
Issuance of refunding bonds - - - -
Premium on refunding bonds - - - -
Payment to refunded bonds escrow agent - - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources
and uses - - - -
Net change in fund balances 1,560 40,906 108,827 (147,166)
Fund balances – beginning of year 98,981 172,246 265,290 412,995
Fund balances – end of year 100,541 $ 213,152 $ 374,117 $ 265,829 $
Other financing sources (uses):
Special Revenue Funds
111
72
Exhibit C-2
Debt Service
Motor Senior Funds
Fuel General Resources Housing Debt
Tax Cemetery Commission Trust Elawa Farm Service
Fund Fund Fund Fund Fund Fund
-$ -$ -$ -$ -$ 1,931,758 $
- - - 66,000 - -
565,427 - - - - -
- 13,885 173,907 - 24,001 154,997
- 529,723 177,944 - 86,868 -
3,322 493,268 398 3,075 682 12,036
- - 309 13,565 - -
568,749 1,036,876 352,558 82,640 111,551 2,098,791
- 548,273 - 87,500 - 73,394
- - 593,842 - 280,613 -
- - - - - -
29,373 - - - - -
- 140,000 - - - 1,260,950
- 4,900 - - - 1,314,376
29,373 693,173 593,842 87,500 280,613 2,648,720
539,376 343,703 (241,284) (4,860) (169,062) (549,929)
- 650 - - - -
- - - - - 9,715,000
- - - - - 26,093
- - - - - (9,665,000)
- - 224,754 - - 665,436
- - - - - (900,000)
- 650 224,754 - - (158,471)
539,376 344,353 (16,530) (4,860) (169,062) (708,400)
802,946 4,101,381 102,951 765,794 169,062 2,407,274
1,342,322 $ 4,445,734 $ 86,421 $ 760,934 $ -$ 1,698,874 $
(Continued)
Special Revenue Funds
112
73
Exhibit C-2
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended April 30, 2014
Route 60 Route 60 Route 60 Total
Bridge Intersection Fitzmorris Nonmajor
Improvements Improvements Improvements Governmental
Fund Fund Fund Funds
Revenues:
Taxes:
Property -$ -$ -$ 1,931,758 $
Other - - - 66,000
Intergovernmental revenues - - - 576,125
Grants and contributions - - - 416,790
Charges for services - - - 1,199,107
Investment income 4,116 2,023 62 521,825
Miscellaneous revenue - - - 13,874
Total revenues 4,116 2,023 62 4,725,479
Expenditures:
Current:
General government - 135,313 20,423 864,903
Culture and recreation - - - 874,455
Public safety - - - 224,634
Capital outlay - - - 268,725
Debt service:
Principal - - - 1,400,950
Interest - - - 1,319,276
Total expenditures - 135,313 20,423 4,952,943
Excess (deficiency) of revenues
over expenditures 4,116 (133,290) (20,361) (227,464)
Other financing sources (uses):
Proceeds from sales of capital assets - - - 650
Issuance of refunding bonds - - - 9,715,000
Premium on refunding bonds - - - 26,093
Payment to refunded bonds escrow agent - - - (9,665,000)
Transfers in - - - 890,190
Transfers out - - - (900,000)
Total other financing sources
and uses - - - 66,933
Net change in fund balances 4,116 (133,290) (20,361) (160,531)
Fund balances – beginning of year 1,028,104 550,354 20,361 10,897,739
Fund balances – end of year 1,032,220 $ 417,064 $ -$ 10,737,208 $
CITY OF LAKE FOREST, ILLINOIS
Nonmajor Governmental Funds
113
74
Exhibit C-3
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Asset Forfeiture Fund
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Intergovernmental 9,000 $ 10,698 $ 1,698 $
Investment income 380 406 26
Total revenues 9,380 11,104 1,724
Expenditures:
Current:
Contingency 3,900 - 3,900
Capital outlay 39,000 9,544 29,456
Total expenditures 42,900 9,544 33,356
Net change in fund balance (33,520) $ 1,560 35,080 $
Fund balance – beginning of year 98,981
Fund balance – end of year 100,541 $
114
75
Exhibit C-4
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Foreign Fire Insurance Tax Fund
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Charges for services 96,000 $ 102,611 $ 6,611 $
Investment income 300 103 (197)
Total revenues 96,300 102,714 6,414
Expenditures:
Current:
Public safety 105,000 61,808 43,192
Contingency 10,500 - 10,500
Total expenditures 115,500 61,808 53,692
Net change in fund balance (19,200) $ 40,906 60,106 $
Fund balance – beginning of year 172,246
Fund balance – end of year 213,152 $
115
76
Exhibit C-5
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Emergency Telephone Fund
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Charges for services 277,000 $ 270,626 $ (6,374) $
Investment income 600 1,027 427
Total revenues 277,600 271,653 (5,947)
Expenditures:
Current:
Public safety 273,020 162,826 110,194
Contingency 27,302 - 27,302
Total expenditures 300,322 162,826 137,496
Net change in fund balance (22,722) $ 108,827 131,549 $
Fund balance – beginning of year 265,290
Fund balance – end of year 374,117 $
116
77
Exhibit C-6
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Parks and Public Land Fund
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Grants and contributions 50,000 $ 50,000 $ -$
Charges for services 31,336 31,335 (1)
Investment income 1,790 1,307 (483)
Total revenues 83,126 82,642 (484)
Expenditures:
Current:
Contingency 32,481 - 32,481
Capital outlay 324,805 229,808 94,997
Total expenditures 357,286 229,808 127,478
Net change in fund balance (274,160) $ (147,166) 126,994 $
Fund balance – beginning of year 412,995
Fund balance – end of year 265,829 $
117
78
Exhibit C-7
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Motor Fuel Tax Fund
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Intergovernmental revenues 552,000 $ 565,427 $ 13,427 $
Investment income 3,577 3,322 (255)
Total revenues 555,577 568,749 13,172
Expenditures:
Current:
Contingency 10,000 - 10,000
Capital outlay 100,000 29,373 70,627
Total expenditures 110,000 29,373 80,627
Net change in fund balance 445,577 $ 539,376 93,799 $
Fund balance – beginning of year 802,946
Fund balance – end of year 1,342,322 $
118
79
Exhibit C-8
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
General Cemetery Fund
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Grants and contributions 15,546 $ 13,885 $ (1,661) $
Charges for services 625,934 529,723 (96,211)
Investment income 188,066 493,268 305,202
Total revenues 829,546 1,036,876 207,330
Expenditures:
Current:
General government 780,836 548,273 232,563
Contingency 92,574 - 92,574
Debt service:
Principal retirement 140,000 140,000 -
Interest 4,900 4,900 -
Total expenditures 1,018,310 693,173 325,137
Excess (deficiency) of revenues
over expenditures (188,764) 343,703 532,467
Other financing sources:
Proceeds from sales of capital assets - 650 650
Net change in fund balance (188,764) $ 344,353 533,117 $
Fund balance – beginning of year 4,101,381
Fund balance – end of year 4,445,734 $
119
80
Exhibit C-9
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Senior Resources Commission Fund
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Grants and contributions 183,263 $ 173,907 $ (5,319) $
Charges for services 173,200 177,944 4,744
Investment income 600 398 (202)
Miscellaneous revenue - 309 309
Total revenues 357,063 352,558 (4,505)
Expenditures:
Current:
Culture and recreation 575,512 593,842 (18,330)
Contingency 57,551 - 57,551
Total expenditures 633,063 593,842 39,221
Excess (deficiency) of revenues
over expenditures (276,000) (241,284) 34,716
Other financing sources:
Transfers in 234,754 224,754 (10,000)
Net change in fund balance (41,246) $ (16,530) 24,716 $
Fund balance – beginning of year 102,951
Fund balance – end of year 86,421 $
120
81
Exhibit C-10
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Housing Trust Fund
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Other taxes - demolition tax 36,000 $ 66,000 $ 30,000 $
Investment income 3,800 3,075 (725)
Miscellaneous revenue - 13,565 13,565
Total revenues 39,800 82,640 42,840
Expenditures:
Current:
General government 275,000 87,500 187,500
Contingency 27,500 - 27,500
Total expenditures 302,500 87,500 215,000
Net change in fund balance (262,700) $ (4,860) 257,840 $
Fund balance – beginning of year 765,794
Fund balance – end of year 760,934 $
Revenues:
121
82
Exhibit C-11
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Elawa Farm Fund
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Grants and contributions 24,408 $ 24,001 $ (407) $
Charges for services 77,641 86,868 9,227
Investment income 450 682 232
Total revenues 102,499 111,551 9,052
Expenditures:
Current:
Culture and recreation 273,457 280,613 (7,156)
Contingency 6,846 - 6,846
Total expenditures 280,303 280,613 (310)
Net change in fund balance (177,804) $ (169,062) 8,742 $
Fund balance – beginning of year 169,062
Fund balance – end of year -$
122
83
Exhibit C-12
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Debt Service Fund
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Taxes
Property 1,911,773 $ 1,931,758 $ 19,985 $
Grants and contributions 168,384 154,997 (13,387)
Investment income 10,705 12,036 1,331
Total revenues 2,090,862 2,098,791 7,929
Expenditures:
Current:
General government 3,500 73,394 (69,894)
Debt service:
Principal 1,260,949 1,260,950 (1)
Interest 1,314,543 1,314,376 167
Total expenditures 2,578,992 2,648,720 (69,728)
Deficiency of revenues
over expenditures (488,130) (549,929) (61,799)
Issuance of refunding bonds - 9,715,000 9,715,000
Premium on refunding bonds - 26,093 26,093
Payment to refunded bonds escrow agent - (9,665,000) (9,665,000)
Transfers in 632,955 665,436 32,481
Transfers out (1,307,304) (900,000) 407,304
Total other financing sources (uses)(674,349) (158,471) 515,878
Net change in fund balance (1,162,479) $ (708,400) 454,079 $
Fund balance – beginning of year 2,407,274
Fund balance – end of year 1,698,874 $
Other financing sources (uses):
123
84
Exhibit C-13
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Capital Improvements Fund (Major Fund)
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Taxes:
Property 9,764 $ 9,764 $ -$
Other 1,169,000 1,699,580 530,580
Grants and contributions 6,353,485 411,798 (5,941,687)
Charges for services 100,236 109,584 9,348
Investment income 14,365 12,408 (1,957)
Miscellaneous revenue - 31,784 31,784
Total revenues 7,646,850 2,274,918 (5,371,932)
Expenditures:
Current:
General government 79,478 62,778 16,700
Contingency 1,194,924 - 1,194,924
Capital outlay 11,869,757 4,839,501 7,030,256
Total expenditures 13,144,159 4,902,279 8,241,880
Excess (deficiency) of revenues
over expenditures (5,497,309) (2,627,361) 2,869,948
Other financing sources:
Proceeds from sales of capital assets:
Sale of property - 778,058 778,058
Sale of equipment - 11,111 11,111
Transfers in 2,452,304 2,045,000 (407,304)
Total other financing sources 2,452,304 2,834,169 381,865
Net change in fund balance (3,045,005) $ 206,808 3,251,813 $
Fund balance – beginning of year 3,878,148
Fund balance – end of year 4,084,956 $
124
85
Exhibit C-14
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Route 60 Bridge Improvements Fund
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Investment income -$ 4,116 $ 4,116 $
Expenditures:
Current:
Contingency 102,805 - 102,805
Capital outlay 1,028,049 - 1,028,049
Total expenditures 1,130,854 - 1,130,854
Net change in fund balance (1,130,854) $ 4,116 1,134,970 $
Fund balance – beginning of year 1,028,104
Fund balance – end of year 1,032,220 $
125
86
Exhibit C-15
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Route 60 Intersection Improvements Fund
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Investment income -$ 2,023 $ 2,023 $
Expenditures:
Current:
Contingency 55,032 - 55,032
General government 550,322 135,313 415,009
Total expenditures 605,354 135,313 470,041
Net change in fund balance (605,354) $ (133,290) 472,064 $
Fund balance – beginning of year 550,354
Fund balance – end of year 417,064 $
126
87
Exhibit C-16
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Route 60 Fitzmorris Improvements Fund
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Investment income -$ 62 $ 62 $
Expenditures:
Current:
General government - 20,423 (20,423)
Contingency 2,036 - 2,036
Capital outlay 20,359 - 20,359
Total expenditures 22,395 20,423 1,972
Net change in fund balance (22,395) $ (20,361) 2,034 $
Fund balance – beginning of year 20,361
Fund balance – end of year -$
127
MAJOR ENTERPRISE FUND
Waterworks and Sewerage Fund
The Waterworks and Sewerage Fund accounts for the provision of water and sewer service to the residents of
the City.
128
88
CITY OF LAKE FOREST, ILLINOIS Exhibit D-1
Schedule of Revenues, Expenses, and Nonoperating Revenues (Expenses)
Budget and Actual (Budgetary Basis)
Waterworks and Sewerage Fund
For the Year Ended April 30, 2014
Original and Variance
Final Actual with
Appropriations Amounts Final Budget
Operating revenues:
Charges for services 7,815,774 $ 7,407,730 $ (408,044) $
Connection fees 93,000 106,552 13,552
Miscellaneous 8,427 7,041 (1,386)
Total operating revenues 7,917,201 7,521,323 (395,878)
Operating expenses:
General and administrative 2,190,813 2,042,519 148,294
Operations and maintenance 3,846,970 3,349,567 497,403
Contingency 985,080 - 985,080
Total operating expenses 7,022,863 5,392,086 1,630,777
Nonoperating revenues (expenses):
Investment income 46,748 36,412 (10,336)
Principal retirement (1,730,000) (1,730,000) -
Interest expense (483,020) (576,991) (93,971)
Total nonoperating revenues
(expenses)(2,166,272) (2,270,579) (104,307)
129
NONMAJOR ENTERPRISE FUND
Deerpath Golf Course Fund
The Golf Fund accounts for the operations of the City golf course. Financing is provided by user charges from
utilizing the golf course.
130
89
Exhibit E-1
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenses, and Nonoperating Revenues (Expenses)
Budget and Actual (Budgetary Basis)
Deerpath Golf Course Fund
For the Year Ended April 30, 2014
Original and Variance
Final Actual with
Appropriations Amounts Final Budget
Operating revenues:
Charges for services 1,428,889 $ 1,394,424 $ (34,465) $
Miscellaneous - 3,412 3,412
Total operating revenues 1,428,889 1,397,836 (31,053)
Operating expenses:
General and administrative 618,502 590,975 27,527
Operations and maintenance 745,926 806,540 (60,614)
Contingency 147,303 - 147,303
Total operating expenses 1,511,731 1,397,515 114,216
Nonoperating revenues (expenses):
Investment income 1,439 2,138 699
Principal retirement (85,000) (85,000) -
Interest expense (23,605) (20,366) 3,239
Total nonoperating revenues
(expenses) (107,166) (103,228) 3,938
131
INTERNAL SERVICE FUNDS
Fleet Fund
The Fleet Fund accounts for the costs of operating a maintenance and repairs facility for automotive and other
equipment used by other City departments. Such costs are billed to the other departments at actual cost plus
an allocation of administrative costs based on actual costs. The automotive and other equipment itself is
acquired by the various user departments.
Self Insurance Fund
The Self Insurance Fund accounts for the costs of the self-insured medical and dental plan. Administration of
the plan is provided by Professional Benefit Administrators, Inc.
Liability Insurance Fund
The Liability Insurance Fund accounts for the costs of liability insurance.
132
90
Exhibit F-1
CITY OF LAKE FOREST, ILLINOIS
Combining Statement of Net Position
Internal Service Funds
April 30, 2014
Total
Self Liability Internal
Fleet Insurance Insurance Service
Assets Fund Fund Fund Funds
Current assets:
Cash and cash equivalents 218,359 $ 5,381,310 $ 610,025 $ 6,209,694 $
Other receivables 5,375 294,656 - 300,031
Inventories 299,674 - - 299,674
Prepaid items - - 577,015 577,015
Total current assets 523,408 5,675,966 1,187,040 7,386,414
Noncurrent assets:
Capital assets:
Being depreciated, net of
accumulated depreciation 28,132 - - 28,132
Total capital assets, net 28,132 - - 28,132
Total noncurrent assets 28,132 - - 28,132
Total assets 551,540 5,675,966 1,187,040 7,414,546
Liabilities
Current liabilities:
Accounts payable 16,484 297,398 55,555 369,437
Accrued liabilities 13,695 528,649 93,426 635,770
Total current liabilities 30,179 826,047 148,981 1,005,207
Noncurrent liabilities:
Accrued compensated absences 56,776 - - 56,776
Total liabilities 86,955 826,047 148,981 1,061,983
Net Position
Net investment in capital assets 28,132 - - 28,132
Unrestricted 436,453 4,849,919 1,038,059 6,324,431
Total net position 464,585 $ 4,849,919 $ 1,038,059 $ 6,352,563 $
133
91
Exhibit F-2
CITY OF LAKE FOREST, ILLINOIS
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position
Internal Service Funds
For the Year Ended April 30, 2014
Total
Self Liability Internal
Fleet Insurance Insurance Service
Fund Fund Fund Funds
Operating revenues:
Charges for services 1,901,090 $ 4,901,714 $ 1,327,356 $ 8,130,160 $
Operating expenses:
General and administrative 1,830,834 5,446,817 1,110,215 8,387,866
Depreciation and amortization 4,804 - - 4,804
Total operating expenses 1,835,638 5,446,817 1,110,215 8,392,670
Operating income (loss)65,452 (545,103) 217,141 (262,510)
Nonoperating revenues:
Investment income 1,000 22,605 2,987 26,592
Change in net position 66,452 (522,498) 220,128 (235,918)
Net position – beginning of year 398,133 5,372,417 817,931 6,588,481
Net position – end of year 464,585 $ 4,849,919 $ 1,038,059 $ 6,352,563 $
134
92
Exhibit F-3
CITY OF LAKE FOREST, ILLINOIS
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended April 30, 2014
Total
Self Liability Internal
Fleet Insurance Insurance Service
Fund Fund Fund Funds
Cash flows from operating activities:
Receipts from interfund services provided 1,901,832 $ 4,615,637 $ 1,327,356 $ 7,844,825 $
Payments to suppliers (1,200,334) (5,206,661) (1,215,628) (7,622,623)
Payments to employees (671,712) - - (671,712)
Net cash flows from
operating activities 29,786 (591,024) 111,728 (449,510)
Cash flows from investing activities:
Interest and dividends received 1,000 22,605 2,987 26,592
Increase (decrease) in cash and
cash equivalents 30,786 (568,419) 114,715 (422,918)
Cash and cash equivalents – beginning of year 187,573 5,949,729 495,310 6,632,612
Cash and cash equivalents – end of year 218,359 $ 5,381,310 $ 610,025 $ 6,209,694 $
Reconciliation of operating income (loss) to net
cash flows from operating activities:
Operating income (loss) 65,452 $ (545,103) $ 217,141 $ (262,510) $
Adjustments to reconcile operating income
(loss) to net cash flows from
operating activities:
Depreciation expense 4,804 - - 4,804
Changes in assets and liabilities:
Accounts receivable 742 (286,077) - (285,335)
Other assets (2,248) - (46,748) (48,996)
Accounts payable (42,419) 72,166 14,689 44,436
Accrued liabilities 230 167,990 (73,354) 94,866
Compensated absences 3,225 - - 3,225
Total adjustments (35,666) (45,921) (105,413) (187,000)
Net cash flows from
operating activities 29,786 $ (591,024) $ 111,728 $ (449,510) $
135
93
Exhibit F-4
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenses and Nonoperating Revenues
Budget and Actual (Budgetary Basis)
Fleet Fund
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Operating revenues:
Charges for services 1,899,752 $ 1,901,090 $ 1,338 $
Operating expenses:
General and administrative 1,879,570 1,830,834 48,736
Contingency 187,957 - 187,957
Total operating expenses 2,067,527 1,830,834 236,693
Nonoperating revenues:
Investment income 700 1,000 300
136
94
Exhibit F-5
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenses and Nonoperating Revenues
Budget and Actual (Budgetary Basis)
Self Insurance Fund
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Operating revenues:
Charges for services 4,905,180 $ 4,901,714 $ (3,466) $
Operating expenses:
General and administrative 5,065,500 5,446,817 (381,317)
Contingency 481,550 - 481,550
Total operating expenses 5,547,050 5,446,817 100,233
Nonoperating revenues:
Investment income 27,000 22,605 (4,395)
137
95
Exhibit F-6
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenses and Nonoperating Revenues
Budget and Actual (Budgetary Basis)
Liability Insurance Fund
For the Year Ended April 30, 2014
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Operating revenues:
Charges for services 1,327,356 $ 1,327,356 $ -$
Operating expenses:
General and administrative 1,089,305 1,110,215 (20,910)
Contingency 108,931 - 108,931
Total operating expenses 1,198,236 1,110,215 88,021
Nonoperating revenues:
Investment income 2,600 2,987 387
138
FIDUCIARY FUNDS
Pension Trust Funds
Police Pension Fund
The Police Pension Fund accounts for the accumulation of resources to be used for disability or retirement
annuity payments to uniformed police department personnel at appropriate amounts and times in the future.
Resources are contributed by employees at rates fixed by law and by the City at amounts determined by an
independent actuary from a specific property tax levy.
Firefighters’ Pension Fund
The Firefighters’ Pension Fund accounts for the accumulation of resources to be used for disability or retirement
annuity payments to uniformed fire department personnel at appropriate amounts and times in the future.
Resources are contributed by employees at rates fixed by law and by the City at amounts determined by an
independent actuary from a specific annual property tax levy.
Private Purpose Trust Fund
Cemetery Trust Fund – The Cemetery Trust Fund accounts for monies provided by private donations. The
investment earnings are expended for the operations of the cemetery. These statements are included in
Exhibits A-10 and A-11.
Agency Fund
Special Assessment Fund – The Special Assessment Fund is used to account for the collection of special
assessments of property owners and payments of related special assessment liabilities. The City does not have
any outstanding special assessments. The cash balance is unclaimed rebated special assessments.
139
96
Exhibit G-1
CITY OF LAKE FOREST, ILLINOIS
Combining Statement of Fiduciary Net Position
Pension Trust Funds
April 30, 2014
Police Firefighters'
Pension Pension
Assets Fund Fund Total
Cash and cash equivalents 272,211 $ 1,183,786 $ 1,455,997 $
Investments:
U.S. Treasury obligations 6,307,782 2,948,616 9,256,398
U.S. Government agencies 3,230,257 4,840,720 8,070,977
Municipal/corporate bonds 985,094 4,800,498 5,785,592
Common stock 2,201,465 - 2,201,465
Equity mutual funds 13,405,052 16,831,360 30,236,412
Other receivables 81,760 91,873 173,633
Prepaid expenses 8,017 4,273 12,290
Total assets 26,491,638 30,701,126 57,192,764
Liabilities
Accounts payable 3,895 5,917 9,812
Net Position
Held in trust for pension benefits 26,487,743 $ 30,695,209 $ 57,182,952 $
140
97
Exhibit G-2
CITY OF LAKE FOREST, ILLINOIS
Combining Statement of Changes in Fiduciary Net Position
Pension Trust Funds
For the Year Ended April 30, 2014
Police Firefighters'
Pension Pension
Fund Fund Total
Additions:
Contributions:
Employer 1,563,964 $ 1,090,695 $ 2,654,659 $
Employee 345,616 291,366 636,982
Total contributions 1,909,580 1,382,061 3,291,641
Interest income 539,835 677,903 1,217,738
Net appreciation in fair value of investments 1,943,913 1,553,038 3,496,951
Less investment expenses (116,763) (87,786) (204,549)
Net investment income 2,366,985 2,143,155 4,510,140
Total additions 4,276,565 3,525,216 7,801,781
Deductions:
Pension benefits and refunds 1,988,433 1,718,352 3,706,785
Other administrative expenses 4,000 4,000 8,000
1,992,433 1,722,352 3,714,785
Change in net position 2,284,132 1,802,864 4,086,996
Net position held in trust at beginning of year 24,203,611 28,892,345 53,095,956
Net position held in trust at end of year 26,487,743 $ 30,695,209 $ 57,182,952 $
141
98
Exhibit G-3
CITY OF LAKE FOREST, ILLINOIS
Statement of Changes in Assets and Liabilities
Agency Fund - Special Assessment Fund
For the Year Ended April 30, 2014
Balance, Balance,
May 1 Additions Deductions April 30
Assets
Cash and cash equivalents 60,174 $ -$ -$ 60,174 $
Liabilities
Amounts held in trust for
special assessment districts 60,174 $ -$ -$ 60,174 $
142
99
CITY OF LAKE FOREST, ILLINOIS Exhibit G-4
Police Pension Fund
Schedule of Changes in Fiduciary Net Position - Budget and Actual
For the Year Ended April 30, 2014
Original/Final Variance with
Appropriations Actual Final Budget
Additions:
Contributions
Employer 1,568,299 $ 1,563,964 $ (4,335) $
Employee 350,000 345,616 (4,384)
Total contributions 1,918,299 1,909,580 (8,719)
Interest income 150,000 539,835 389,835
Net appreciation in fair value of investments - 1,943,913 1,943,913
Less investment expense (115,000) (116,763) (1,763)
Net investment income 35,000 2,366,985 2,331,985
Total additions 1,953,299 4,276,565 2,323,266
Deductions:
Pension benefits and refunds 1,956,000 1,988,433 (32,433)
Other administrative expenses 4,000 4,000 -
Contingency 207,500 - 207,500
Total deductions 2,167,500 1,992,433 175,067
Change in net position (214,201) $ 2,284,132 2,498,333 $
Net position held in trust at beginning of year 24,203,611
Net position held in trust at end of year 26,487,743 $
143
100
CITY OF LAKE FOREST, ILLINOIS Exhibit G-5
Firefighters' Pension Fund
Schedule of Changes in Fiduciary Net Position - Budget and Actual
For the Year Ended April 30, 2014
Original/Final Variance with
Appropriations Actual Final Budget
Additions:
Contributions
Employer 1,084,880 $ 1,090,695 $ 5,815 $
Employee 285,000 291,366 6,366
Total contributions 1,369,880 1,382,061 12,181
Interest income 500,000 677,903 177,903
Net appreciation in fair value of investments - 1,553,038 1,553,038
Less investment expense (81,000) (87,786) (6,786)
Net investment income 419,000 2,143,155 1,724,155
Total additions 1,788,880 3,525,216 1,736,336
Deductions:
Pension benefits and refunds 1,565,000 1,718,352 (153,352)
Other administrative expenses 4,000 4,000 -
Contingency 164,000 - 164,000
Total deductions 1,733,000 1,722,352 10,648
Change in net position 55,880 $ 1,802,864 1,746,984 $
Net position held in trust at beginning of year 28,892,345
Net position held in trust at end of year 30,695,209 $
144
DISCRETELY PRESENTED COMPONENT UNIT
145
Lake Forest Library
General Fund
The General Fund accounts for the operation and maintenance of the Lake Forest Library. Financing is
provided by a specific annual property tax levy, charges for services, fines and forfeits, interest earned on
investments and other miscellaneous revenues.
146
101
Exhibit H-1
CITY OF LAKE FOREST, ILLINOIS
Discretely Presented Component Unit – Lake Forest Library
Statement of Net Position and General Fund Balance Sheet
April 30, 2014
General Statement of
Assets Fund Adjustments Net Position
Cash and cash equivalents 1,530,394 $ -$ 1,530,394 $
Receivables (net of allowance for
uncollectibles):
Property taxes 3,751,395 - 3,751,395
Other taxes 5,512 - 5,512
Prepaids 5,190 - 5,190
Capital assets (net):
Capital assets not depreciated - 359,066 359,066
Capital assets depreciated (net) - 3,318,922 3,318,922
Total assets 5,292,491 $ 3,677,988 $ 8,970,479 $
Liabilities
Accounts payable 81,459 $ -$ 81,459 $
Accrued liabilities 64,503 - 64,503
Long-term obligations:
Due within one year - 5,000 5,000
Due in more than one year - 237,782 237,782
Total Liabilities 145,962 242,782 388,744
Deferred Inflows of Resources
Property tax levies intended to finance FY15 3,751,395 - 3,751,395
Fund balance:
Unassigned 1,395,134 (1,395,134) -
Net position:
Net investment in capital assets - 3,620,701 3,620,701
Unrestricted - 1,209,639 1,209,639
Total fund balance/net position 1,395,134 3,435,206 4,830,340
Total liabilities, deferred inflows of
resources and fund balance/net position 5,292,491 $ 3,677,988 $ 8,970,479 $
Fund Balance/Net Position:
147
102
Exhibit H-2
CITY OF LAKE FOREST, ILLINOIS
Discretely Presented Component Unit – Lake Forest Library
Statement of Activities and General Fund Statement of Revenues, Expenditures, and
Changes in Fund Balance
For the Year Ended April 30, 2014
Statement
General of
Fund Adjustments Activities
Revenues
Taxes:
Property 3,718,524 $ -$ 3,718,524 $
Other 33,244 - 33,244
Intergovernmental – per capita grant 44,129 - 44,129
Grants and contributions 60,175 - 60,175
Charges for services 13,501 - 13,501
Fines 47,028 - 47,028
Investment income 9,328 - 9,328
Total revenues 3,925,929 - 3,925,929
Expenditures/expenses
Current:
Library services:
Personnel services 2,215,585 (8,992) 2,206,593
Other 852,321 (19,776) 832,545
Library building:
Personnel services 148,736 (288) 148,448
Other 160,617 220,313 380,930
Capital outlay:
Building and office 43,650 (43,650) -
Capital improvements 293,391 (293,391) -
Debt service:
Principal retirement 31,433 (31,433) -
Interest 743 - 743
Total expenditures/expenses 3,746,476 (177,217) 3,569,259
Net change in fund balance/net position 179,453 177,217 356,670
Fund balance/net position – beginning of year 1,215,681 3,257,989 4,473,670
Fund balance/net position – end of year 1,395,134 $ 3,435,206 $ 4,830,340 $
148
103
Exhibit I-1
CITY OF LAKE FOREST, ILLINOIS
Summary of Debt Service Requirements to Maturity
April 30, 2014
General
Fiscal Obligation
year Bonds
2015 5,339,563 $
2016 5,221,130
2017 5,115,776
2018 5,239,319
2019 5,320,683
2020 5,485,640
2021 5,572,626
2022 5,421,288
2023 5,415,218
2024 4,496,027
2025 2,400,719
2026 2,395,018
2027 2,374,363
2028 2,365,426
2029 2,130,605
2030 2,097,300
2031 2,139,650
2032 2,126,400
2033 2,079,450
72,736,201 $
149
104
Exhibit I-2
CITY OF LAKE FOREST, ILLINOIS
Debt Service Requirements to Maturity – General Obligation Bonds
April 30, 2014
Fiscal
Year Principal Interest Principal Interest Principal Interest
2015 55,000 $ 14,703 $ 14,522 $ 4,848 $ 100,914 $ 38,916 $
2016 60,000 13,575 15,117 4,470 105,101 36,241
2017 60,000 12,285 15,767 4,047 109,569 33,351
2018 60,000 10,935 16,461 3,590 114,335 30,228
2019 65,000 9,525 17,202 3,096 119,423 26,855
2020 65,000 7,932 17,993 2,563 124,857 23,213
2021 70,000 6,275 18,839 1,987 130,663 19,280
2022 75,000 4,350 19,743 1,365 136,870 15,034
2023 75,000 2,213 20,701 704 143,508 10,448
2024 - - - - 150,611 5,497
2025 - - - - - -
2026 - - - - - -
2027 - - - - - -
2028 - - - - - -
2029 - - - - - -
2030 - - - - - -
2031 - - - - - -
2032 - - - - - -
2033 - - - - - -
585,000 $ 81,793 $ 156,345 $ 26,670 $ 1,235,851 $ 239,063 $
(Continued)
Special Service Area 25 Special Service Area 26
Tax BondsTax Bonds
Special Service Area 29
Tax Bonds
150
105
Exhibit I-2, Cont.
CITY OF LAKE FOREST, ILLINOIS
Debt Service Requirements to Maturity - General Obligation Bonds
April 30, 2014
Fiscal
Year Principal Interest Principal Interest Principal Interest
2015 550,000 $ 279,206 $ 170,000 $ 109,845 $ -$ 172,500 $
2016 565,000 260,644 170,000 106,445 - 172,500
2017 580,000 241,575 175,000 102,620 - 172,500
2018 600,000 222,000 180,000 98,245 - 172,500
2019 615,000 201,750 185,000 93,745 - 172,500
2020 635,000 180,225 190,000 88,195 - 172,500
2021 465,000 158,000 200,000 82,495 - 172,500
2022 485,000 141,725 205,000 76,495 - 172,500
2023 500,000 124,144 215,000 68,808 - 172,500
2024 520,000 106,019 225,000 60,745 - 172,500
2025 540,000 87,169 235,000 51,745 - 172,500
2026 560,000 66,919 245,000 42,345 - 172,500
2027 580,000 45,919 255,000 32,545 - 172,500
2028 605,000 23,444 265,000 22,345 - 172,500
2029 - - 280,000 11,480 - 172,500
2030 - - - - 540,000 172,500
2031 - - - - 780,000 141,450
2032 - - - - 820,000 96,600
2033 - - - - 860,000 49,450
7,800,000 $ 2,138,739 $ 3,195,000 $ 1,048,098 $ 3,000,000 $ 3,047,500 $
(Continued)
Obligation Bonds
Series 2008 2010 Series BSeries 2009
Obligation Bonds Obligation Bonds
151
106
Exhibit I-2, Cont.
CITY OF LAKE FOREST, ILLINOIS
Debt Service Requirements to Maturity - General Obligation Bonds
April 30, 2014
Fiscal
Year Principal Interest Principal Interest Principal Interest
2015 -$ 259,311 $ 480,000 $ 27,263 $ 1,920,000 $ 555,300 $
2016 300,000 259,311 325,000 20,063 1,955,000 516,900
2017 195,000 250,311 120,000 15,188 2,215,000 477,800
2018 210,000 243,974 125,000 12,788 2,270,000 433,500
2019 225,000 236,099 130,000 9,975 2,300,000 376,750
2020 215,000 227,099 130,000 7,050 2,400,000 319,250
2021 405,000 217,424 140,000 3,150 2,470,000 259,250
2022 415,000 198,693 - - 2,530,000 197,500
2023 425,000 178,980 - - 2,605,000 134,250
2024 435,000 158,793 - - 1,870,000 56,100
2025 445,000 137,043 - - - -
2026 460,000 114,792 - - - -
2027 475,000 91,562 - - - -
2028 490,000 67,100 - - - -
2029 490,000 40,150 - - - -
2030 240,000 13,200 - - - -
2031 - - - - - -
2032 - - - - - -
2033 - - - - - -
5,425,000 $ 2,693,842 $ 1,450,000 $ 95,477 $ 22,535,000 $ 3,326,600 $
(Continued)
2010 Series C 2011 Series B
Obligation Bonds
2011 Series A
Obligation Bonds Obligation Bonds
152
107
Exhibit I-2, Conc.
CITY OF LAKE FOREST, ILLINOIS
Debt Service Requirements to Maturity - General Obligation Bonds
April 30, 2014
Total
Fiscal Requirements
Year Principal Interest Principal Interest Total
2015 180,000 $ 407,235 $ 3,470,436 $ 1,869,127 $ 5,339,563 $
2016 - 335,763 3,495,218 1,725,912 5,221,130
2017 - 335,763 3,470,336 1,645,440 5,115,776
2018 100,000 335,763 3,675,796 1,563,523 5,239,319
2019 200,000 333,763 3,856,625 1,464,058 5,320,683
2020 350,000 329,763 4,127,850 1,357,790 5,485,640
2021 430,000 322,763 4,329,502 1,243,124 5,572,626
2022 435,000 312,013 4,301,613 1,119,675 5,421,288
2023 440,000 298,962 4,424,209 991,009 5,415,218
2024 450,000 285,762 3,650,611 845,416 4,496,027
2025 460,000 272,262 1,680,000 720,719 2,400,719
2026 475,000 258,462 1,740,000 655,018 2,395,018
2027 480,000 241,837 1,790,000 584,363 2,374,363
2028 495,000 225,037 1,855,000 510,426 2,365,426
2029 930,000 206,475 1,700,000 430,605 2,130,605
2030 960,000 171,600 1,740,000 357,300 2,097,300
2031 1,085,000 133,200 1,865,000 274,650 2,139,650
2032 1,120,000 89,800 1,940,000 186,400 2,126,400
2033 1,125,000 45,000 1,985,000 94,450 2,079,450
9,715,000 $ 4,941,223 $ 55,097,196 $ 17,639,005 $ 72,736,201 $
(Concluded)
Series 2013
Obligation Bonds
153
108
Exhibit I-3
CITY OF LAKE FOREST, ILLINOIS
Special Service Area 25 Special Tax Bonds – 2003 Series
April 30, 2014
Date of issue: May 1, 2003
Date of maturity: December 15, 2022
Authorized issue: $ 1,050,000
Denomination of bonds: $ 5,000
Interest rate: 1.95-2.95%
Interest dates: June 15 and December 15
Payable at: Lake Forest Bank and Trust
Lake Forest, Illinois
Redeemable annually
on December 15 Amount
2014 55,000 $
2015 60,000
2016 60,000
2017 60,000
2018 65,000
Thereafter 285,000
585,000 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2013 55,000 $ 14,703 $ 69,703 $ 2014 7,351 $ 2014 7,352 $
2014 60,000 13,575 73,575 2015 6,787 2015 6,788
2015 60,000 12,285 72,285 2016 6,143 2016 6,142
2016 60,000 10,935 70,935 2017 5,467 2017 5,468
2017 65,000 9,525 74,525 2018 4,762 2018 4,763
Thereafter 285,000 20,770 305,770 Thereafter 10,385 Thereafter 10,385
585,000 $ 81,793 $ 666,793 $
Coupons due on
154
109
Exhibit I-4
CITY OF LAKE FOREST, ILLINOIS
Special Service Area 26 Special Tax Bonds – 2003 Series
April 30, 2014
Date of issue:October 7, 2003
Date of maturity:December 15, 2022
Authorized issue:$ 276,500
Denomination of bonds: One bond per maturity
Interest rate:2.50-3.40%
Interest dates:June 15 and December 15
Payable at:Lake Forest Bank and Trust
Lake Forest, Illinois
Redeemable annually
on December 15 Amount
2014 14,522 $
2015 15,117
2016 15,767
2017 16,461
2018 17,202
Thereafter 77,276
156,345 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2013 14,522 $ 4,848 $ 19,370 $ 2014 2,424 $ 2014 2,424 $
2014 15,117 4,470 19,587 2015 2,235 2015 2,235
2015 15,767 4,047 19,814 2016 2,023 2016 2,024
2016 16,461 3,590 20,051 2017 1,795 2017 1,795
2017 17,202 3,096 20,298 2018 1,548 2018 1,548
Thereafter 77,276 6,619 83,895 Thereafter 3,309 Thereafter 3,310
156,345 $ 26,670 $ 183,015 $
Coupons due on
155
110
Exhibit I-5
CITY OF LAKE FOREST, ILLINOIS
Special Service Area 29 Special Tax Bonds – 2004 Series
April 30, 2014
Date of issue: December 20, 2004
Date of maturity: December 15, 2023
Authorized issue: $ 2,000,000
Denomination of bonds: One bond per maturity
Interest rate: 2.55-3.65%
Interest dates: June 15 and December 15
Payable at: Well Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2014 100,914 $
2015 105,101
2016 109,569
2017 114,335
2018 119,423
Thereafter 686,509
1,235,851 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2013 100,914 $ 38,916 $ 139,830 $ 2014 19,458 $ 2014 19,458 $
2014 105,101 36,241 141,342 2015 18,121 2015 18,120
2015 109,569 33,351 142,920 2016 16,675 2016 16,676
2016 114,335 30,228 144,563 2017 15,114 2017 15,114
2017 119,423 26,855 146,278 2018 13,427 2018 13,428
Thereafter 686,509 73,472 759,981 Thereafter 36,736 Thereafter 36,736
1,235,851 $ 239,063 $ 1,474,914 $
Coupons due on
156
111
Exhibit I-6
CITY OF LAKE FOREST, ILLINOIS
General Obligation Bonds – 2008 Series
April 30, 2014
Date of issue: April 15, 2008
Date of maturity: December 15, 2027
Authorized issue: 9,750,000$
Denomination of bonds: 5,000$
Interest rate: 3.375-3.875%
Interest dates: June 15 and December 15
Payable at: Wells Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2014 550,000 $
2015 565,000
2016 580,000
2017 600,000
2018 615,000
Thereafter 4,890,000
7,800,000 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2013 550,000 $ 279,206 $ 829,206 $ 2014 139,603 $ 2014 139,603 $
2014 565,000 260,644 825,644 2015 130,322 2015 130,322
2015 580,000 241,575 821,575 2016 120,787 2016 120,788
2016 600,000 222,000 822,000 2017 111,000 2017 111,000
2017 615,000 201,750 816,750 2018 100,875 2018 100,875
Thereafter 4,890,000 933,564 5,823,564 Thereafter 466,782 Thereafter 466,782
7,800,000 $ 2,138,739 $ 9,938,739 $
Coupons due on
157
112
Exhibit I-7
CITY OF LAKE FOREST, ILLINOIS
General Obligation Bonds – 2009 Series
April 30, 2014
Date of issue: May 14, 2009
Date of maturity: December 15, 2029
Authorized issue: $ 3,680,000
Denomination of bonds: $ 5,000
Interest rate: 2.00 - 4.10 %
Interest dates: June 15 and December 15
Payable at: Wells Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2014 170,000 $
2015 170,000
2016 175,000
2017 180,000
2018 185,000
Thereafter 2,315,000
3,195,000 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2013 170,000 $ 109,845 $ 279,845 $ 2014 54,922 $ 2014 54,923 $
2014 170,000 106,445 276,445 2015 53,222 2015 53,223
2015 175,000 102,620 277,620 2016 51,310 2016 51,310
2016 180,000 98,245 278,245 2017 49,123 2017 49,122
2017 185,000 93,745 278,745 2018 46,873 2018 46,872
Thereafter 2,315,000 537,198 2,852,198 Thereafter 268,599 Thereafter 268,599
3,195,000 $ 1,048,098 $ 4,243,098 $
Coupons due on
158
113
Exhibit I-8
CITY OF LAKE FOREST, ILLINOIS
General Obligation Bonds – 2010 Series B
April 30, 2014
Date of issue:May 12, 2010
Date of maturity:December 15, 2032
Authorized issue:3,000,000$
Denomination of bonds:5,000$
Interest rate:5.75%
Interest dates:June 15 and December 15
Payable at:Wells Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2029 540,000 $
2030 780,000
2031 820,000
2032 860,000
3,000,000 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2013 -$ 172,500 $ 172,500 $ 2014 86,250 $ 2014 86,250 $
2014 - 172,500 172,500 2015 86,250 2015 86,250
2015 - 172,500 172,500 2016 86,250 2016 86,250
2016 - 172,500 172,500 2017 86,250 2017 86,250
2017 - 172,500 172,500 2018 86,250 2018 86,250
Thereafter 3,000,000 2,185,000 5,185,000 Thereafter 1,092,500 Thereafter 1,092,500
3,000,000 $ 3,047,500 $ 6,047,500 $
Coupons due on
159
114
Exhibit I-9
CITY OF LAKE FOREST, ILLINOIS
General Obligation Bonds – 2010 Series C
April 30, 2014
Date of issue: May 12, 2010
Date of maturity: December 15, 2029
Authorized issue: 5,425,000$
Denomination of bonds: 5,000$
Interest rate: 3.00 - 5.50%
Interest dates: June 15 and December 15
Payable at: Wells Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2015 300,000 $
2016 195,000
2017 210,000
2018 225,000
2019 215,000
Thereafter 4,280,000
5,425,000 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2013 -$ 259,311 $ 259,311 $ 2014 129,656 $ 2014 129,655 $
2014 300,000 259,311 559,311 2015 129,656 2015 129,655
2015 195,000 250,311 445,311 2016 125,156 2016 125,155
2016 210,000 243,974 453,974 2017 121,987 2017 121,987
2017 225,000 236,099 461,099 2018 118,050 2018 118,049
Thereafter 4,495,000 1,444,836 5,939,836 Thereafter 722,418 Thereafter 722,418
5,425,000 $ 2,693,842 $ 8,118,842 $
Coupons due on
160
115
Exhibit I-10
CITY OF LAKE FOREST, ILLINOIS
General Obligation Bonds – 2011 Series A
April 30, 2014
Date of issue:September 6, 2011
Date of maturity:December 15, 2021
Authorized issue:2,415,000$
Denomination of bonds:5,000$
Interest rate:1.50 - 3.00%
Interest dates:June 15 and December 15
Payable at:Wells Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2014 480,000 $
2015 325,000
2016 120,000
2017 125,000
2018 130,000
Thereafter 270,000
1,450,000 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2013 480,000 $ 27,263 $ 507,263 $ 2014 13,632 $ 2014 13,631 $
2014 325,000 20,063 345,063 2015 10,032 2015 10,031
2015 120,000 15,188 135,188 2016 7,594 2016 7,594
2016 125,000 12,788 137,788 2017 6,394 2017 6,394
2017 130,000 9,975 139,975 2018 4,988 2018 4,987
Thereafter 270,000 10,200 280,200 Thereafter 5,100 Thereafter 5,100
1,450,000 $ 95,477 $ 1,545,477 $
Coupons due on
161
116
Exhibit I-11
CITY OF LAKE FOREST, ILLINOIS
General Obligation Bonds – 2011 Series B
April 30, 2014
Date of issue:September 6, 2011
Date of maturity:December 15, 2023
Authorized issue:24,825,000$
Denomination of bonds:5,000$
Interest rate:1.00 - 3.00%
Interest dates:June 15 and December 15
Payable at:Wells Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2014 1,920,000 $
2015 1,955,000
2016 2,215,000
2017 2,270,000
2018 2,300,000
Thereafter 11,875,000
22,535,000 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2013 1,920,000 $ 555,300 $ 2,475,300 $ 2014 277,650 $ 2014 277,650 $
2014 1,955,000 516,900 2,471,900 2015 258,450 2015 258,450
2015 2,215,000 477,800 2,692,800 2016 238,900 2016 238,900
2016 2,270,000 433,500 2,703,500 2017 216,750 2017 216,750
2017 2,300,000 376,750 2,676,750 2018 188,375 2018 188,375
Thereafter 11,875,000 966,350 12,841,350 Thereafter 483,175 Thereafter 483,175
22,535,000 $ 3,326,600 $ 25,861,600 $
Coupons due on
162
117
Exhibit I-12
CITY OF LAKE FOREST, ILLINOIS
General Obligation Bonds – Series 2013
April 30, 2014
Date of issue: September 16, 2013
Date of maturity: December 15, 2032
Authorized issue: 9,715,000$
Denomination of bonds: 5,000$
Interest rate: 2.00 - 4.00%
Interest dates: June 15 and December 15
Payable at: Wells Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2014 180,000 $
2015 -
2016 -
2017 100,000
2018 200,000
Thereafter 9,235,000
9,715,000 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2013 180,000 $ 407,235 $ 587,235 $ 2014 203,618 $ 2014 203,617 $
2014 - 335,763 335,763 2015 167,882 2015 167,881
2015 - 335,763 335,763 2016 167,882 2016 167,881
2016 100,000 335,763 435,763 2017 167,882 2017 167,881
2017 200,000 333,763 533,763 2018 167,882 2018 166,881
Thereafter 9,235,000 3,192,936 12,427,936 Thereafter 1,596,468 Thereafter 1,596,468
9,715,000 $ 4,941,223 $ 14,656,223 $
Coupons due on
163
118
CITY OF LAKE FOREST, ILLINOIS
Debt Service Fund
Combining Balance Sheet
April 30, 2014
2003 Special Service Special Service
Series D Area 25 Area 26
General General General
Obligation Obligation Obligation
Bonds Bonds Bonds
Cash and cash equivalents 571,149 $ 11,358 $ 1,744 $
Receivables (net of allowance
for uncollectibles):
Property taxes - 69,103 19,570
Total assets 571,149 $ 80,461 $ 21,314 $
Property tax levies intended to finance FY15 -$ 69,103 $ 19,570 $
Fund balance – restricted for
debt service 571,149 11,358 1,744
Total deferred inflows of resources and fund balance 571,149 $ 80,461 $ 21,314 $
Fund Balance
Assets
Deferred Inflows of Resources
164
119
Exhibit I-13
Special Service 2004
Area 29 Series B 2008 2009 2010 2013
General General General General General General
Obligation Obligation Obligation Obligation Obligation Obligation
Bonds Bonds Bonds Bonds Bonds Bonds Total
1,073 $ 932,088 $ 149,915 $ 15,639 $ 9,888 $ 6,020 $ 1,698,874 $
138,230 - 826,511 278,988 262,574 585,349 2,180,325
139,303 $ 932,088 $ 976,426 $ 294,627 $ 272,462 $ 591,369 $ 3,879,199 $
138,230 $ -$ 826,511 $ 278,988 $ 262,574 $ 585,349 $ 2,180,325 $
1,073 932,088 149,915 15,639 9,888 6,020 1,698,874
139,303 $ 932,088 $ 976,426 $ 294,627 $ 272,462 $ 591,369 $ 3,879,199 $
165
120
CITY OF LAKE FOREST, ILLINOIS
Debt Service Fund
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance
Year ended April 30, 2014
2003 Special Service Special Service
Series D Area 25 Area 26
General General General
Obligation Obligation Obligation
Bonds Bonds Bonds
Revenues:
Taxes:
Property taxes -$ 79,329 $ 21,675 $
Grants and contributions - IRS rebate - - -
Investment income 3,426 126 29
Total revenues 3,426 79,455 21,704
Expenditures:
General government 500 - -
Debt service:
Principal 205,000 55,000 13,964
Interest 10,025 15,695 5,177
Total expenditures 215,525 70,695 19,141
Excess (deficiency) of revenues
over expenditures (212,099) 8,760 2,563
Other financing sources:
Issuance of refunding bonds - - -
Premium on refunding bonds - - -
Payment to refunded bonds escrow agent - - -
Transfers in 279,483 - -
Transfers out (300,000) - -
Total other financing sources (uses) (20,517) - -
Net change in fund balance (232,616) 8,760 2,563
Fund balance – beginning of year 803,765 2,598 (819)
Fund balance – end of year 571,149 $ 11,358 $ 1,744 $
166
121
Exhibit I-14
Special Service 2004
Area 29 Series B 2008 2009 2010 2013
General General General General General General
Obligation Obligation Obligation Obligation Obligation Obligation
Bonds Bonds Bonds Bonds Bonds Bonds Total
146,987 $ -$ 841,884 $ 282,264 $ 559,619 $ -$ 1,931,758 $
- - - - 154,997 - 154,997
161 5,957 1,547 451 268 71 12,036
147,148 5,957 843,431 282,715 714,884 71 2,098,791
- 500 500 500 1,250 70,144 73,394
96,986 190,000 535,000 165,000 - - 1,260,950
41,500 109,810 297,263 113,145 721,761 - 1,314,376
138,486 300,310 832,763 278,645 723,011 70,144 2,648,720
8,662 (294,353) 10,668 4,070 (8,127) (70,073) (549,929)
- - - - - 9,715,000 9,715,000
- - - - - 26,093 26,093
- - - - - (9,665,000) (9,665,000)
- 385,953 - - - - 665,436
- (600,000) - - - - (900,000)
- (214,047) - - - 76,093 (158,471)
8,662 (508,400) 10,668 4,070 (8,127) 6,020 (708,400)
(7,589) 1,440,488 139,247 11,569 18,015 - 2,407,274
1,073 $ 932,088 $ 149,915 $ 15,639 $ 9,888 $ 6,020 $ 1,698,874 $
167
STATISTICAL SECTION
(Unaudited)
168
Statistical Section
This part of the City of Lake Forest comprehensive annual financial report presents detailed information as
a context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City's overall financial health.
Contents Page
Financial Trends 122-130
These schedules contain trend information to help the reader understand how the
City's financial performance and well-being have changed over time.
Revenue Capacity 131-138
These schedules contain information to help the reader assess the factors affecting
the City's ability to generate its property and sales taxes.
Debt Capacity 139-143
These schedules present information to help the reader assess the affordability of
the City's current levels of outstanding debt and the City's ability to issue additional
debt in the future.
Demographic and Economic Information 144-146
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take place
and to help make comparisons over time and with other governments.
Operating Information 147-150
These schedules contain information about the City's operations and resources to
help the reader understand how the City's financial information relates to the
services the City provides and the activities it performs.
Sources:Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
169
122
CITY OF LAKE FOREST, ILLINOIS
Net Position by Component
Last Ten Fiscal Years
2005 2006 2007 2008
Governmental Activities
Net investment in capital assets 157,490,638$ 166,151,385$ 163,863,237$ 172,325,675$
Restricted 2,997,174 3,568,910 4,010,519 3,978,855
Unrestricted 18,310,053 16,476,341 26,409,165 28,748,888
Total Governmental Activities 178,797,865$ 186,196,636$ 194,282,921$ 205,053,418$
Business-type Activities
Net investment in capital assets 41,401,968$ 43,183,127$ 44,504,668$ 44,932,466$
Restricted - - - -
Unrestricted 11,917,654 11,105,554 11,824,329 12,087,202
Total Business-type Activities 53,319,622$ 54,288,681$ 56,328,997$ 57,019,668$
Total
Net investment in capital assets 198,892,606$ 209,334,512$ 208,367,905$ 217,258,141$
Restricted 2,997,174 3,568,910 4,010,519 3,978,855
Unrestricted 30,227,707 27,581,895 38,233,494 40,836,090
Total Primary Government 232,117,487$ 240,485,317$ 250,611,918$ 262,073,086$
Data Source
Audited Financial Statements
Fiscal Year
170
123
Table 1
2009 2010 2011 2012 2013 2014
193,768,992$ 193,225,047$ 192,568,460$ 190,779,593$ 187,500,531$ 184,270,349$
3,319,974 3,001,515 3,645,693 16,599,487 16,064,099 16,860,362
25,867,536 25,090,240 29,683,545 19,550,532 21,126,818 23,689,130
222,956,502$ 221,316,802$ 225,897,698$ 226,929,612$ 224,691,448$ 224,819,841$
37,184,702$ 38,075,853$ 37,709,887$ 36,753,670$ 36,077,752$ 36,163,443$
- - - - - -
9,577,076 8,617,858 8,513,924 8,918,142 9,880,856 9,739,336
46,761,778$ 46,693,711$ 46,223,811$ 45,671,812$ 45,958,608$ 45,902,779$
230,953,694$ 231,300,900$ 230,278,347$ 227,533,263$ 223,578,283$ 220,433,792$
3,319,974 3,001,515 3,645,693 16,599,487 16,064,099 16,860,362
35,444,612 33,708,098 38,197,469 28,468,674 31,007,674 33,428,466
269,718,280$ 268,010,513$ 272,121,509$ 272,601,424$ 270,650,056$ 270,722,620$
Fiscal Year
171
124
CITY OF LAKE FOREST, ILLINOIS
Changes in Net Position
Last Ten Fiscal Years
2005 2006 2007 2008
Expenses
Governmental Activities
General Government 10,248,966 $ 10,621,820 $ 10,026,323 $ 11,035,000 $
Highways and Streets 9,702,235 6,195,805 7,102,425 8,821,953
Sanitation 1,949,856 2,053,718 2,225,808 2,310,966
Culture and recreation 7,884,543 8,450,431 9,403,755 8,812,293
Public safety 10,224,612 11,081,841 11,557,020 12,348,729
Public improvements and other - - - -
Interest 1,245,364 1,218,802 968,963 808,253
Total Governmental Activities Expenses 41,255,576 39,622,417 41,284,294 44,137,194
Business-type Activities
Waterworks and sewerage 6,226,893 7,347,680 7,891,031 8,228,975
Golf 1,320,941 1,411,572 1,545,070 1,562,520
Paid Parking 707,319 684,855 767,413 757,200
Total Business-type Activities Expenses 8,255,153 9,444,107 10,203,514 10,548,695
Total Primary Government Expenses 49,510,729 $ 49,066,524 $ 51,487,808 $ 54,685,889 $
Program Revenues
Governmental Activities
Charges for Services
General Government 4,966,614 $ 6,022,462 $ 5,094,588 $ 5,249,766 $
Highways and Streets 1,502,928 145,245 1,576,654 929,199
Sanitation 134,242 189,943 293,410 295,658
Culture and recreation 4,508,488 4,273,157 5,458,842 3,831,855
Public safety 1,368,304 1,357,067 1,387,792 1,567,944
Operating Grants and Contributions 956,752 1,407,815 1,284,897 790,979
Capital Grants and Contributions 524,811 1,657,563 - 5,301,494
Total Governmental Activities Program Revenues 13,962,139 15,053,252 15,096,183 17,966,895
Business-type Activities
Charges for Services
Waterworks and sewerage 6,723,387 7,668,972 6,944,190 6,893,939
Golf 1,382,190 1,373,637 1,702,287 1,430,875
Paid Parking 1,007,204 781,213 1,007,654 1,016,991
Operating Grants and Contributions - - 217,249 -
Capital Grants and Contributions 312,372 154,966 854,027 1,367,797
Total Business-type Activities
Program Revenues 9,425,153 9,978,788 10,725,407 10,709,602
Total Primary Government Program Revenues 23,387,292 $ 25,032,040 $ 25,821,590 $ 28,676,497 $
Net (Expense) Revenue
Governmental Activities (27,293,437) $ (24,569,165) $ (26,188,111) $ (26,170,299) $
Business-type Activities 1,170,000 534,681 521,893 160,907
Total Primary Government Net (Expense) Revenue (26,123,437) $ (24,034,484) $ (25,666,218) $ (26,009,392) $
Fiscal Year
172
125
Table 2
2009 2010 2011 2012 2013 2014
14,928,550 $ 13,974,412 $ 13,321,852 $ 12,080,189 $ 16,176,326 $ 12,311,198 $
7,911,604 9,469,570 8,687,404 8,304,860 7,536,444 7,762,403
2,169,302 2,183,373 2,349,916 2,568,820 2,512,559 2,586,125
9,430,847 9,589,857 9,402,752 9,469,832 10,352,252 10,397,593
12,623,300 13,116,738 13,398,718 13,583,116 13,748,855 14,430,151
- - - - - -
978,029 1,097,805 1,424,317 1,420,087 1,362,715 1,333,267
48,041,632 49,431,755 48,584,959 47,426,904 51,689,151 48,820,737
7,659,138 7,882,904 8,008,372 7,985,394 8,287,297 7,476,752
1,490,115 1,345,437 1,393,869 1,371,380 1,459,394 1,554,678
- - - - - -
9,149,253 9,228,341 9,402,241 9,356,774 9,746,691 9,031,430
57,190,885 $ 58,660,096 $ 57,987,200 $ 56,783,678 $ 61,435,842 $ 57,852,167 $
4,980,144 $ 4,822,344 $ 4,455,844 $ 4,771,863 $ 4,838,151 $ 4,756,948 $
1,239,586 809,661 693,029 846,366 753,487 741,334
192,848 104,158 171,030 81,577 58,564 77,147
4,197,023 4,121,592 3,650,467 3,392,303 3,342,913 3,314,856
1,589,647 1,540,927 1,930,715 1,678,032 1,861,619 1,950,998
684,872 1,413,819 846,781 1,433,791 1,777,734 1,105,191
9,033,429 925,524 5,982,721 360,407 25,000 757,239
21,917,549 13,738,025 17,730,587 12,564,339 12,657,468 12,703,713
6,589,780 7,048,854 7,344,740 7,477,637 8,598,079 7,521,323
1,413,732 1,333,879 1,264,624 1,238,016 1,320,455 1,397,836
- - - - - -
- - - - - -
829,447 97,724 162,051 - - -
8,832,959 8,480,457 8,771,415 8,715,653 9,918,534 8,919,159
30,750,508 $ 22,218,482 $ 26,502,002 $ 21,279,992 $ 22,576,002 $ 21,622,872 $
(26,124,083) $ (35,693,730) $ (30,854,372) $ (34,862,565) $ (39,031,683) $ (36,117,024) $
(316,294) (747,884) (630,826) (641,121) 171,843 (112,271)
(26,440,377) $ (36,441,614) $ (31,485,198) $ (35,503,686) $ (38,859,840) $ (36,229,295) $
Fiscal Year
173
126
CITY OF LAKE FOREST, ILLINOIS
Changes in Net Position (Continued)
Last Ten Fiscal Years
2005 2006 2007 2008
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property taxes 19,846,632$ 20,858,317$ 21,287,422$ 22,324,863$
Sales 2,900,860 3,058,396 3,271,452 3,118,339
Income and Use 1,747,505 1,826,030 1,989,187 2,175,196
Telecommunications and Utility 4,066,843 4,434,227 4,198,439 4,454,442
Real Estate Transfer Tax - - 1,259,295 1,984,052
Other 388,059 356,466 463,689 489,018
Investment Earnings 861,935 1,434,500 1,991,995 1,771,629
Gain on sale of capital assets 470,463 - - -
Miscellaneous - - 805,436 627,188
Transfers (67,630) - (992,519) (3,931)
Total Governmental Activities 30,214,667 31,967,936 34,274,396 36,940,796
Business-type Activities
Investment Earnings 211,768 434,378 525,904 525,833
Transfers 67,630 - 992,519 3,931
Total Business-type Activities 279,398 434,378 1,518,423 529,764
Total Primary Government 30,494,065$ 32,402,314$ 35,792,819$ 37,470,560$
Change in Net Position
Governmental Activities 2,921,230$ 7,398,771$ 8,086,285$ 10,770,497$
Business-type Activities 1,449,398 969,059 2,040,316 690,671
Total Primary Government Change in Net Position 4,370,628$ 8,367,830$ 10,126,601$ 11,461,168$
Data Source
Audited Financial Statements
Fiscal Year
174
127
Table 2
2009 2010 2011 2012 2013 2014
23,067,216$ 24,383,716$ 24,739,956$ 25,428,378$ 25,051,411$ 23,744,650$
3,010,457 2,392,497 2,554,772 2,577,304 3,183,479 3,047,529
2,018,177 1,762,425 1,849,046 1,938,686 2,131,711 2,182,325
4,407,235 3,967,398 3,968,072 3,981,548 3,736,586 4,026,972
962,840 878,925 1,279,935 1,215,407 1,209,113 1,633,580
391,347 372,640 422,080 492,746 493,418 581,443
35,853 852,245 573,508 264,432 491,196 637,193
- - - - - -
22,729 60,000 150,049 33,724 573,705 669,145
10,111,313 (615,816) (102,150) (37,746) (77,100) (97,000)
44,027,167 34,054,030 35,435,268 35,894,479 36,793,519 36,425,837
169,717 64,001 58,776 51,376 37,853 38,550
(10,111,313) 615,816 102,150 37,746 77,100 97,000
(9,941,596) 679,817 160,926 89,122 114,953 135,550
34,085,571$ 34,733,847$ 35,596,194$ 35,983,601$ 36,908,472$ 36,561,387$
17,903,084$ (1,639,700)$ 4,580,896$ 1,031,914$ (2,238,164)$ 308,813$
(10,257,890) (68,067) (469,900) (551,999) 286,796 23,279
7,645,194$ (1,707,767)$ 4,110,996$ 479,915$ (1,951,368)$ 332,092$
Fiscal Year
175
128 CITY OF LAKE FOREST, ILLINOIS Table 3Fund Balances of Governmental FundsLast Ten Fiscal Years2005 2006 2007 2008 2009 2010 2011 2012* 2013 2014General FundNonspendable2,159,403$ 2,775,449$ 2,126,990$ Restricted957,420 957,420 957,420 Unassigned10,601,190 11,020,723 14,530,550 Reserved585,232$ 510,960$ 470,008$ 1,041,187$ 2,218,570$ 1,071,068$ 2,988,884$ Unreserved11,178,843 6,506,164 8,534,147 9,585,445 8,618,251 9,815,220 9,239,135 Total General Fund11,764,075$ 7,017,124$ 9,004,155$ 10,626,632$ 10,836,821$ 10,886,288$ 12,228,019$ 13,718,013$ 14,753,592$ 17,614,960$ All Other Governmental FundsNonspendable43,333$ 43,333$ -$ Restricted16,171,794 15,605,203 16,127,257 Assigned1,591,600 1,598,819 1,449,284 ReservedSpecial Revenue Funds 407,587$ 121,299$ 89,809$ 130,173$ 128,516$ 43,306$ 4,333$ Capital Project Funds69,058 - - - - - - Debt Service Funds1,915,242 2,381,564 2,849,336 2,708,268 2,632,215 2,839,264 2,808,826 Unreserved, reported inSpecial Revenue Funds 3,885,249 5,531,312 8,006,257 8,063,766 6,747,544 8,209,263 9,869,178 Capital Project Funds 10,123,851 8,048,381 8,898,968 17,815,488 6,538,074 3,171,421 6,189,372 Debt Service Funds- - - - - - - Total All Other Governmental Funds16,400,987$ 16,082,556$ 19,844,370$ 28,717,695$ 16,046,349$ 14,263,254$ 18,871,709$ 17,806,727$ 17,247,355$ 17,576,541$ Total All Governmental 28,165,062$ 23,099,680$ 28,848,525$ 39,344,327$ 26,883,170$ 25,149,542$ 31,099,728$ 31,524,740$ 32,000,947$ 35,191,501$ Data SourceAudited Financial Statements* The City implemented GASB Statement #54 in FY 2012.Fiscal Year 176
129 CITY OF LAKE FOREST, ILLINOISTable 42005 2006 2007 2008 2009 2010 2011 2012 2013 2014RevenuesProperty taxes 19,846,632 $ 20,858,317 $ 21,287,422 $ 22,324,863 $ 23,067,216 $ 24,383,716 $ 24,739,956 $ 25,428,378 $ 25,051,411 $ 23,744,650 $ Other taxes 9,103,267 9,675,119 11,182,063 12,221,047 10,790,056 9,433,885 10,073,905 10,205,691 10,754,307 11,471,849 Intergovernmental revenues 1,254,231 1,407,815 948,449 790,979 684,872 1,304,368 523,185 589,960 612,357 576,125 Grants and contributions - - - - - 706,250 1,306,195 1,039,737 1,190,377 962,249 Charges for services 6,946,174 7,422,055 8,416,183 7,193,242 8,295,760 7,844,119 7,427,784 7,028,800 7,319,673 7,373,500 Licenses and permits 2,933,400 2,488,811 2,483,638 2,345,931 2,117,774 2,135,888 2,246,336 2,475,739 2,450,194 2,477,338 Fines and forfeitures 387,178 461,909 357,556 469,208 387,629 372,924 409,539 372,607 368,941 297,005 Investment income 832,709 1,358,266 1,866,217 1,673,038 (11,695) 815,520 531,666 225,225 462,579 610,601 Miscellaneous revenue 2,114,370 1,419,807 2,890,358 1,870,927 1,420,815 1,374,476 1,074,576 730,813 1,225,082 759,384 Total Revenues43,417,961 45,092,099 49,431,886 48,889,235 46,752,427 48,371,146 48,333,142 48,096,950 49,434,921 48,272,701 ExpendituresGeneral government9,739,170 9,158,599 9,533,418 10,569,268 12,778,200 12,226,189 11,929,446 10,313,031 14,242,768 10,112,393 Highways and streets1,682,996 1,770,853 1,979,122 2,332,972 2,567,220 3,897,758 2,449,911 2,139,656 2,044,225 2,293,840 Sanitation1,845,302 1,943,042 2,023,726 2,125,284 2,096,044 2,056,528 2,194,511 2,228,844 2,193,091 2,212,166 Culture and recreation7,253,560 7,662,467 8,174,644 7,925,598 8,511,075 8,816,962 8,559,331 8,463,547 9,282,695 8,686,298 Public safety10,099,843 10,895,658 11,341,849 12,169,723 12,820,200 13,062,453 13,291,727 13,723,801 13,826,732 14,299,583 Capital outlay6,253,592 12,940,175 5,466,571 8,324,272 28,537,234 11,376,490 6,348,572 6,641,923 4,586,574 5,527,772 Debt ServicePrincipal4,376,212 5,013,943 4,774,827 4,797,104 2,954,681 2,877,662 15,659,313 2,531,876 1,377,736 1,400,950 Interest827,160 982,744 881,087 781,529 694,355 1,173,967 1,284,755 1,667,372 1,392,342 1,319,276 Bond issuance costs64,640 - - - - - - - - - Total Expenditures42,142,475 50,367,481 44,175,244 49,025,750 70,959,009 55,488,009 61,717,566 47,710,050 48,946,163 45,852,278 Excess of Revenues over (under)Expenditures1,275,486 (5,275,382) 5,256,642 (136,515) (24,206,582) (7,116,863) (13,384,424) 386,900 488,758 2,420,423 (Continued)Changes in Fund Balances of Governmental FundsLast Ten Fiscal YearsFiscal Year177
130 CITY OF LAKE FOREST, ILLINOISTable 42005 2006 2007 2008 2009 2010 2011 2012 2013 2014Other financing Sources (Uses)Transfers in3,350,766 $ 9,713,436 $ 2,893,460 $ 3,201,175 $ 5,425,090 $ 1,847,105 $ 1,844,410 $ 2,296,270 $ 2,829,243 $ 3,224,306 $ Transfers out(3,418,396) (9,713,436) (3,885,979) (3,041,224) (4,454,665) (2,462,921) (1,946,560) (2,334,016) (2,906,343) (3,321,306) Bonds issued7,200,000 - - 9,750,000 - 3,680,000 18,090,000 - - - Installment note proceeds- - - - 10,700,000 2,300,000 - - - - Loan proceeds- - - - - - - - - - Premium (discount) on bondsissued(16,631) - - (50,668) - 19,051 279,130 120,828 - 26,093 Proceeds from refunding G.O. bonds- - - - - - - 5,690,000 - 9,715,000 Payments for refunding G.O. bonds- - - - - - - (5,769,025) - (9,665,000) Sale of capital assets768,543 210,000 1,484,722 773,034 75,000 - 1,067,630 34,055 64,549 791,038 Total Other Financing Sources (Uses) 7,884,282 210,000 492,203 10,632,317 11,745,425 5,383,235 19,334,610 38,112 (12,551) 770,131 Net Change in Fund Balances9,159,768 $ (5,065,382) $ 5,748,845 $ 10,495,802 $ (12,461,157) $ (1,733,628) $ 5,950,186 $ 425,012 $ 476,207 $ 3,190,554 $ Debt Service as a Percentage of Noncapital Expenditures14.50%16.02%14.61%12.60%8.08% 8.62% 8.62% 8.31% 5.85% 6.17%Data SourceAudited Financial StatementsChanges in Fund Balances of Governmental Funds (Continued)Last Ten Fiscal YearsFiscal Year 178
131 CITY OF LAKE FOREST, ILLINOISTable 5Assessed Value and Actual Value of Taxable PropertyLast Ten Levy Years Total Estimated Estimated Tax Total Taxable Direct Actual ActualLevy Residential Commercial Industrial Other Increment Assessed Tax Taxable TaxableYear Property Property Property Property Financing Value Rate Value Value20042,030,461,408$ 167,553,300$ 1,016,864$ 4,424,771$ 49,762,611$ 2,253,218,954$ 0.9630 6,759,656,862$ 33.333% 2005 2,229,037,071 171,210,021 62,957 4,476,207 52,512,948 2,457,299,204 0.9110 7,371,897,612 33.333% 2006 2,453,626,272 187,607,513 64,953 5,407,000 58,493,629 2,705,199,367 0.8690 8,115,598,101 33.333%2007 2,610,727,055 191,390,427 65,007 5,765,126 59,284,794 2,867,232,409 0.8510 8,601,697,227 33.333%2008 2,674,566,048 217,608,832 79,283 5,817,809 60,603,515 2,958,675,487 0.8700 8,876,026,461 33.333%2009 2,609,955,147 214,117,162 71,603 5,887,945 60,662,651 2,890,694,508 0.9020 8,672,083,524 33.333%2010 2,452,291,451 203,193,623 66,933 5,871,505 56,123,585 2,717,547,097 0.9900 8,152,641,291 33.333%2011 2,302,061,004 203,074,638 70,382 5,409,080 54,464,919 2,565,080,023 1.0350 7,695,240,069 33.333%2012 2,166,702,992 207,360,589 65,556 3,918,002- 2,378,047,139 1.1480 7,134,141,417 33.333%2013 2,047,760,158 200,625,492 62,064 5,099,690- 2,253,547,404 1.2480 6,760,642,212 33.333%Data SourceOffice of the County ClerkNote : Property is assessed at 33 1/3% of actual value; property tax rates per $100 of assessed valuation. The City's Tax Increment Financing district expired for 2012179
132 CITY OF LAKE FOREST, ILLINOIS Table 6Based on Shields Township2004 2005 2006 2007 2008 2009 2010 2011 2012 2013Bonds 0.118 0.095 0.088 0.083 0.086 0.090 0.096 0.068 0.071 0.088Corporate 0.481 0.461 0.449 0.443 0.449 0.405 0.446 0.483 0.544 0.580Firemens' Pension 0.023 0.023 0.023 0.025 0.028 0.034 0.037 0.041 0.046 0.052IMRF 0.058 0.055 0.052 0.051 0.052 0.054 0.059 0.032 0.035 0.037Library 0.108 0.105 0.102 0.101 0.101 0.105 0.116 0.126 0.141 0.152Library Sites & Building 0.014 0.013 0.012 0.011 0.013 0.013 0.014 0.015 0.016 0.017Parks/Park Maintenance 0.000 0.000 0.000 0.052 0.050 0.097 0.106 0.114 0.123 0.191Playground & Recreation** 0.116 0.112 0.098 0.038 0.042 0.043 0.046 0.050 0.055 0.000Police Pension 0.034 0.036 0.035 0.037 0.039 0.050 0.057 0.060 0.066 0.076Recreation for Handicapped Rec. 0.011 0.011 0.010 0.010 0.010 0.011 0.013 0.014 0.016 0.018Social Security0.032 0.035 0.037City Direct Rates *0.963 0.911 0.869 0.851 0.870 0.902 0.990 1.035 1.148 1.248Overlapping RatesCollege of Lake County 0.200 0.197 0.195 0.192 0.196 0.200 0.218 0.240 0.272 0.296County of Lake0.465 0.454 0.450 0.444 0.453 0.4640.505 0.554 0.608 0.663Lake County Forest Preserve0.219 0.210 0.204 0.201 0.199 0.2000.198 0.201 0.212 0.218North Shore Sanitary District0.139 0.132 0.125 0.120 0.121 0.1240.136 0.150 0.150 0.164School District 67, Elem.1.051 1.013 0.964 0.944 0.965 0.9981.095 1.186 1.322 1.424School District 115, High School1.003 0.965 0.961 0.959 1.001 1.0691.101 1.191 1.322 1.420Township0.052 0.051 0.050 0.050 0.050 0.0480.039 0.043 0.036 0.037Township Road and Bridge0.018 0.018 0.020 0.016 0.019 0.0200.023 0.026 0.029 0.032Total tax rate4.110 3.951 3.838 3.777 3.874 4.025 4.305 4.626 5.099 5.502 City's share of total tax rate23% 23% 23% 23% 22% 22% 23% 22% 23% 23%Data SourceOffice of the County Clerk - Shields TownshipLake Forest lies within five townships - Moraine, Shields, Vernon, West Deerfield and Libertyville. Therefore, the tax rates for support of the Township government and for theTownship Road and Bridge purposes vary. Parts of Shields Township in Lake Forest lie in the Lake Bluff Park District. All of Moraine Township is in Lake Forest andparts of Shields and West Deerfield Townships in Lake Forest lie in the North Shore Sanitary District.* Excludes rates for the Special Service Areas* Includes the City's component unit, Lake Forest Library** Parks and Playgrounds combined in 2013Property Tax Rates - Direct and Overlapping GovernmentsLast Ten Levy Years180
133
CITY OF LAKE FOREST, ILLINOIS Table 7
Percentage Percentage
of Total of Total
City City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Valuation Value Rank Valuation
Hospira Inc 18,429,766$ 1 0.82% 8,007,473$ 6 0.40%
Lake Products Inc. 13,924,734 2 0.62%
The Presbyterian Home 13,000,708 3 0.58% 24,349,807 1 1.10%
CBIZ Property Tax Solutions 9,053,796 4 0.40% 12,001,886 2 0.50%
Trustmark Insurance Co 7,609,239 5 0.34% 8,243,679 5 0.40%
Northwestern Lake Forest Hospital 7,324,881 6 0.33% 7,427,522 7 0.30%
Lake Forest Landmark Co. LLC 6,721,223 7 0.30% 8,980,183 4 0.40%
Lake Forest Landmark II 5,723,477 8 0.25%
Chicago Bears Football Club, Inc 5,400,570 9 0.24%
Riggs & Co 5,262,931 10 0.23%
Tap Holdings Inc. 10,234,229 3 0.50%
James Altounian 5,388,808 8 0.20%
Brunswick Corporation 4,906,600 10 0.20%
Shawgate- Broadacre 5,202,449 9 0.20%
92,451,325$ 4.10% 94,742,636$ 4.20%
Data Source
Office of the County Clerk
Note: Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers contain
multiple parcels, and it is possible that some parcels and their valuations have been overlooked.
2014 Column is 2013 Assessed Valuation
2005 Column is 2004 Assessed Valuation
Principal Property Taxpayers
Current Year and Nine Years Ago
2014 2005
181
134
CITY OF LAKE FOREST, ILLINOIS Table 8
Property Tax Levies and Collections
Last Ten Levy Years
Subsequent
Levy Percentage Year Taxes Percentage
Year Tax Levied Amount of Levy Collections Received of Levy
2004 21,219,092 $ 21,193,218 $ 99.88% 4,226 $ 21,197,444 $ 99.90%
2005 21,907,603 21,766,069 99.35% 7,159 21,773,228 99.39%
2006 22,999,873 22,979,499 99.91% 204 22,979,703 99.91%
2007 23,895,634 23,851,132 99.81% 12,038 23,863,170 99.86%
2008 25,213,226 25,166,378 99.81% 8,545 25,174,923 99.85%
2009 25,526,887 25,468,324 99.77% 18,421 25,486,745 99.84%
2010 26,348,093 26,304,316 99.83% 8,193 26,312,509 99.86%
2011 25,984,866 25,911,115 99.72% 135 25,911,250 99.72%
2012 27,299,981 27,198,985 99.63% 384 27,199,369 99.63%
2013 28,124,272 N/A N/A N/A N/A N/A
Data Source
Lake County Treasurer and City
Note: Property is assessed at 33 1/3 % of actual value.
Collected within the
Fiscal Year after the Levy
Total Collections
Per Levy
182
135 CITY OF LAKE FOREST, ILLINOISTable 92004 2005 2006 2007 2008 2009 2010 2011 2012 2013General 0.481 0.461 0.449 0.443 0.449 0.405 0.446 0.483 0.544 0.5800.058 0.055 0.052 0.051 0.052 0.054 0.059 0.064 0.070 0.074Firefighter Pension0.023 0.023 0.023 0.025 0.028 0.034 0.037 0.041 0.046 0.052Police Pension0.034 0.036 0.035 0.037 0.039 0.050 0.057 0.060 0.066 0.076Parks and Recreation0.116 0.112 0.098 0.090 0.092 0.140 0.152 0.164 0.178 0.191Special Recreation0.011 0.011 0.010 0.010 0.010 0.011 0.013 0.014 0.016 0.018General Obligation Bond 1998 B0.028 0.026 0.024 0.023 - - - - - - General Obligation Bond 20000.020 0.020 0.025 0.023 0.023 0.023 0.025 - - - General Obligation Bond 2001 B0.006 0.005 0.005 0.004 0.004 0.004 0.004 - - - General Obligation Bond 2002 B0.051 0.031 - - - - - - - - General Obligation Bond 2003 A0.013 0.013 0.034 0.033 0.035 0.036 - - - - General Obligation Bond 2008- - - - 0.024 0.022 0.032 0.034 0.036 0.037General Obligation Bond 2009- - - - - 0.005 0.011 0.011 0.012 0.013General Obligation Bond 20100.000 0.020 0.023 0.023 0.012General Obligation Bond 2013- - - - - 0.000 0.000 0.000 0.000 0.026Total tax rate0.841 0.793 0.755 0.739 0.7560.784 0.856 0.894 0.991 1.079Data SourceOffice of the County Clerk The tax rate for the City's component unit, Lake Forest Library is excluded from this table.This table excludes the tax rates for the Special Service Areas.IMRF/Social SecurityTax Extensions for City FundsLast Ten Levy Years183
136 CITY OF LAKE FOREST, ILLINOIS Table 10Sales Tax Base and Number of Principal PayersTaxable Sales by Category - .5% Sales TaxLast Ten Calendar Years2004 2005 2006 2007200820092010201120122013General Merchandise28,705$ 22,694$ 33,206$ 26,184$ 2,194$ 8,492$ 8,460$ 36,478$ 12,219$ 9,722$ Food86,898 88,675 89,536 89,969 97,870 83,567 89,338 90,613 91,999 93,952 Drinking and Eating Places113,425 124,221 129,149 139,291 147,973 127,679 133,028 140,639 155,188 165,386 Apparel70,485 68,594 63,083 60,423 54,674 55,300 51,968 53,727 64,317 68,135 Furniture & H.H. & Radio44,588 57,206 57,996 58,530 51,881 42,526 38,958 10,187 37,536 38,821 Lumber, Building, Hardware42,130 46,974 38,373 30,834 5,765 20,405 19,010 (6,528) 6,867 9,862 Automobile and Filling Stations 39,402 45,494 48,129 44,478 37,349 27,399 35,443 38,209 38,900 37,025 Drugs and Miscellaneous Retail 126,277 123,674 113,558 116,910 117,787 178,470 91,397 105,512 81,022 110,554 Agriculture and All Others92,361 102,164 91,488 96,048 100,902 88,052 94,649 97,776 110,446 121,651 Manufacturers43,902 64,286 88,889 102,914 109,291 21,860 14,322 (4,963) - - Censored categories- - - - 29,005 - - - - - Total688,173$ 743,982$ 753,407$ 765,581$ 754,691$ 653,750$ 576,573$ 561,650$ 598,494$ 655,108$ Total Number of PayersN/AN/AN/AN/AN/AN/AN/AN/AN/AN/ACity direct sales tax rate0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%Data SourceIllinois Department of RevenueNote: Blank categories have less than 4 taxpayers, therefore no data is shown to protect the confidentiality of individual taxpayers.Effectively July 2003, an additional .5% non home rule sales tax was collected.The City of Lake Forest became a home rule community in November 2004.184
137 CITY OF LAKE FOREST, ILLINOIS Table 11Sales Tax Base and Number of Principal PayersTaxable Sales by Category - 1% Sales TaxLast Ten Calendar Years2004 2005 2006 2007 2008 2009 2010 2011 2012 2013General Merchandise 58,491$ 45,778$ 67,042$ 52,664$ 4,392$ 16,984$ 17,248$ 72,955$ 24,726$ 19,656$ Food607,508 621,140 621,566 635,560 629,087 562,455 570,803 579,914 585,517 593,446 Drinking and Eating Places229,158 252,171 261,151 285,968 302,523 260,953 271,753 286,472 317,291 338,382 Apparel142,328 137,422 126,196 124,644 109,349 110,600 103,935 107,453 128,633 136,270 Furniture & H.H. & Radio89,219 114,945 115,995 117,060 103,763 85,052 77,915 20,373 75,071 77,642 Lumber, Building, Hardware86,497 94,007 76,746 61,668 11,529 40,810 38,019 (13,037) 13,742 19,724 Automobile and Filling Stations 153,273 165,396 167,847 165,896 130,459 109,080 150,101 138,744 146,865 241,339 Drugs and Miscellaneous Retail 456,475 434,170 425,144 441,773 438,917 546,202 322,376 371,420 400,096 433,159 Agriculture and All Others199,683 219,086 200,515 208,076 219,358 198,803 267,227 254,225 274,807 285,401 Manufacturers88,094 129,053 347,340 205,978 218,715 43,909 28,947 (9,729) - - Censored categories- - - - 58,028 - - - - - Total2,110,726$ 2,213,168$ 2,409,543$ 2,299,287$ 2,226,120$ 1,974,848$ 1,848,324$ 1,808,790$ 1,966,748$ 2,145,019$ Total Number of Payers743 737 837 849 843 663 647 637637673City direct sales tax rate1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%Data SourceIllinois Department of RevenueNote: Blank categories have less than 4 taxpayers, therefore no data is shown to protect the confidentiality of individual taxpayers.The categories, Lumber, Bldg. and Hardware and General Merchandise became a censored status in the 2nd quarter of 2008.The category of Furniture & H.H. & Radio became a sensored status in the 4th quarter of 2011. 185
138
CITY OF LAKE FOREST, ILLINOIS Table 12
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
City Special
Fiscal Direct State Metra County
Year Rate Rate Rate Rate Total
2005 1.50% 5.00% 0.25% 0.25%7.00%
2006 1.50% 5.00% 0.25% 0.25%7.00%
2007 1.50% 5.00% 0.25% 0.25%7.00%
2008**1.50% 5.00% 0.50% 0.50%7.50%
2009 1.50% 5.00% 0.50% 0.50%7.50%
2010 1.50% 5.00% 0.50% 0.50%7.50%
2011 1.50% 5.00% 0.50% 0.50%7.50%
2012 1.50% 5.00% 0.50% 0.50%7.50%
2013 1.50% 5.00% 0.50% 0.50%7.50%
2014 1.50% 5.00% 0.50% 0.50%7.50%
Data Source
City records
The City of Lake Forest became a home rule community in November 2004.
* The sales tax rate remained the same as 2007 until April 1, 2008. On April 1, 2008, the sales
tax rates increased to the rate indicated on this schedule.
186
139 CITY OF LAKE FOREST, ILLINOISTable 13Ratios of Outstanding Debt by TypeLast Ten Fiscal YearsGovernmental Activities Business-Type ActivitiesRatio of Total Percentage TotalFiscal General Installment General Total Outstanding Debtof OutstandingYear Obligation Purchase Obligation Revenue Primary To Equalized Personal Debt PerEnded Bonds Contracts Bonds Bonds Government Assessed Valuation* Income* Capita*2005 30,861,955$ 1,163,333$ 31,920,000$ 195,000$ 64,140,288$ 2.85%3.87%2,983.27$ 2006 26,159,679 851,666 30,645,000 135,000 57,791,345 2.35%3.49%2,687.97 2007 21,586,517 650,001 29,325,000 70,000 51,631,518 1.91%3.12%2,401.47 2008 26,631,080 558,334 28,095,000 - 55,284,414 1.93%3.32%2,559.46 2009 24,188,066 11,166,667 26,280,000 - 61,634,733 2.08%3.70%2,853.46 2010 25,457,071 13,000,000 24,925,000 - 63,382,071 2.19%3.81%2,934.36 2011 40,887,758 - 23,525,000 - 64,412,758 2.37%4.31%3,324.53 2012 38,580,882 - 22,804,000 - 61,384,882 2.39%4.11%3,168.25 2013 37,203,146 - 21,060,000 - 58,263,146 2.45%3.90%3,007.13 2014** 35,892,548 - 19,501,725 - 55,394,273 2.46%3.71%2,859.06 Note: Details of the City's outstanding debt can be found in the notes to the financial statements.* See the Schedule of Demographic and Economic Statistics for equalized assessed valuation of property, population data and personal income.** Starting in fiscal year 2014, these amounts are reported net of premiums and discounts. 187
140
CITY OF LAKE FOREST, ILLINOIS Table 14
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Percentage of
Less: Amounts Estimated
General Available Actual Taxable
Fiscal Obligation In Debt Value of Per
Year Bonds Service Fund Total Property* Capita
2005 62,781,955$ 1,915,242$ 60,866,713$ 0.90%2,831.01$
2006 56,804,679 2,381,564 54,423,115 0.74%2,531.31
2007 50,911,517 2,849,336 48,062,181 0.59%2,235.45
2008 54,726,080 2,708,268 52,017,812 0.60%2,408.23
2009 50,468,066 2,632,215 47,835,851 0.54%2,214.62
2010 50,382,071 2,839,265 47,542,806 0.55%2,201.06
2011 64,412,758 2,808,827 61,603,931 0.76%3,179.56
2012 61,384,882 2,316,219 59,068,663 0.77%3,048.71
2013 58,263,146 2,407,274 55,855,872 0.78%2,882.88
2014** 55,394,273 1,698,874 53,695,399 0.79%2,771.38
Note: Details of the City's outstanding debt can be found in the notes to the financial statements.
* See the Schedule of Assessed Value and estimated Actual Value of Taxable Property
for property value data.
** Starting in fiscal year 2014, these amounts are reported net of premiums and discounts.
188
141
CITY OF LAKE FOREST, ILLINOIS Table 15
Direct and Overlapping Governmental Activities Debt
As of April 30, 2014
Percentage City of
Debt Applicable Lake Forest
Gross to the City of Share
Governmental unit Debt Lake Forest*of Debt
Lake County 111,055,000$ 9.81%10,894,496$
Lake County Community College #532 77,990,000 10.35%8,071,965
Lake County Forest Preserve District 288,495,000 9.81%28,301,360
School District #67 878,573 98.20%862,759
School District #103 2,715,000 0.01%272
High School District #115 44,100,000 82.35%36,316,350
High School District #128 17,340,000 3.00%520,200
Subtotal, overlapping debt 542,573,573 84,967,400
City of Lake Forest direct debt 35,852,197 100.00%35,852,197$
Total direct and overlapping debt 578,425,770$ 120,819,597$
Source: Lake County Clerk
* Determined by ratio of assessed valuation of property subject to taxation in the City of
Lake Forest to valuation of property subject to taxation in overlapping unit. The Percentage of debt
is calculated by the percentage of the City's EAV in relation to the overlappling government's EAV.
The gross debt is found on the Lake County website.
Note: Overlapping governments are those that coincide, at least in part, with the
geographic boundaries of the City. This schedule estimates the portion of the
outstanding debt of those overlapping governments that is borne by the residents
and businesses of the City of Lake Forest. This process recognizes that, when
considering the government's ability to issue and repay long-term debt, the entire
debt burden borne by the residents and businesses should be taken into account.
However, this does not imply that every taxpayer is a resident, and therefore
responsible for repaying the debt, of each overlapping government.
189
142 CITY OF LAKE FOREST, ILLINOISTable 16Legal Debt Margin Information2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Debt limit N/A N/A N/A N/A N/A N/A N/A N/A N/A N/ATotal net debt applicable to limit N/A N/A N/A N/A N/A N/A N/A N/A N/A N/ALegal debt margin N/A N/AN/A N/A N/AN/A N/A N/AN/AN/ATotal net debt applicable to the limit as a percentage of debt limit N/A N/A N/A N/A N/A N/A N/A N/A N/A N/ANote: Legal debt margin from 1997-2004 was 8.625% of assessed value.* City of Lake Forest achieved home rule status in November 2004. To date the General Assembly has set no limits for home rule municipalities. Last Ten Fiscal Years 190
143
CITY OF LAKE FOREST, ILLINOIS Table 17
Pledged Revenue Coverage
Last Ten Fiscal Years
Less:Net
Fiscal Gross Operating Available Debt Service
Year Revenue Expenses Revenue Principal Interest Coverage
2005 9,324,549$ 5,152,272$ 4,172,277$ 1,300,000$ 930,502$ 1.87
2006 10,258,200 5,508,705 4,749,495 1,335,000 1,345,021 1.77
2007 10,180,035 6,226,411 3,953,624 1,385,000 1,277,609 1.48
2008 9,870,570 6,532,687 3,337,883 1,430,000 1,236,624 1.25
2009** 9,901,537 6,738,037 3,163,500 1,265,000 1,168,738 1.30
2010 8,446,734 5,397,283 3,049,451 1,358,325 1,126,001 1.23
2011 8,690,738 5,609,379 3,081,359 1,400,000 1,071,748 1.25
2012 8,767,029 6,358,960 2,408,069 1,651,000 661,906 1.04
2013 9,956,387 6,938,272 3,018,115 1,744,000 482,866 1.36
2014 9,043,227 5,406,022 3,637,205 1,815,000 432,725 1.62
Note: Details of the City's outstanding debt can be found in the notes to the financial statements.
Water Charges and Other includes investment earnings but excludes sale of property and grants.
Operating expenses does not include debt service, depreciation or reserve requirements.
** In FY2009, the Paid Parking Fund was closed to the General Fund. Debt payments were paid from a new
Debt Service Fund.
Waterworks and Sewerage and Golf Course Bonds
191
144
CITY OF LAKE FOREST, ILLINOIS Table 18
Equalized Per
Assessed Per Capita
Fiscal Value Capita Personal Personal Unemployment
Year Population (EAV) EAV Income Income Rate
2005 21,500 (E) 2,253,198,954 $ 104,800 $ 1,657,478,000 $ 77,092 $ 3.0%
2006 21,500 (E) 2,457,299,204 114,293 1,657,478,000 77,092 2.6%
2007 21,500 (E) 2,705,199,367 125,823 1,657,478,000 77,092 2.3%
2008 21,600 (E) 2,867,232,409 132,742 1,665,187,200 77,092 2.8%
2009 21,600 (E) 2,958,675,487 136,976 1,665,187,200 77,092 3.9%
2010 21,600 (E) 2,890,654,508 133,827 1,665,187,200 77,092 5.8%
2011* 19,375 (A) 2,717,547,097 140,260 1,493,657,500 77,092 7.8%
2012* 19,375 (A) 2,565,080,023 132,391 1,493,657,500 77,092 7.0%
2013* 19,375 (A) 2,378,047,139 122,738 1,493,657,500 77,092 7.2%
2014* 19,375 (A) 2,253,547,404 116,312 1,493,657,500 77,092 7.1%
(A) Actual
(E) Estimate by City of Lake Forest
Data Source
City records, Department of Labor and Office of the County Clerk.
2010 Census information for Per Capita Personal Income was not available.
* The State of Illinois revised the annual unemployment rates for small communities back to 2010 in 2014
Demographic and Economic Information
Last Ten Fiscal Years
192
145
CITY OF LAKE FOREST, ILLINOIS Table 19
% of % of
Total City Total City
Employer Employees Rank Population Employees Rank Population
Northwest Lake Forest Hospital 1,600 1 8.26% 1,667 1 8.31%
Hospira Inc. 1,350 2 6.97% 1,000 3 4.99%
Trustmark Insurance Company 800 3 4.13% 1,000 2 4.99%
TAP Pharmaceutical Products 0.00% 850 4 4.24%
Solo Cup Co. 600 4 3.10%
Lake Forest College excludes student employees 500 5 2.58% 375 6 1.87%
Lake Forest H.S. District 115 teacher, support staff 350 6 1.81% 364 7 1.81%
Pactiv Corporation 300 7 1.55% 439 5 2.19%
City of Lake Forest 275 8 1.42% 263 10 1.31%
Brunswick Corporation 200 9 1.03% 280 9 1.40%
Packaging Corporation of America 200 10 1.03%
Lake Forest Elem. S.D. No. 67 304 8 1.52%
11977 6240
Data Source
City staff contacted companies via mail.
Principal Employers
Current Year and Nine Years Ago
2014 2005
193
146 CITY OF LAKE FOREST, ILLINOIS Table 20Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014General GovernmentAdministration 29.0 27.0 29.0 30.0 30.0 29.0 26.0 25.0 25.0 25.0Community Development 14.0 16.0 16.0 18.0 18.0 15.0 12.5 12.5 13.0 13.0Public SafetyFire ProtectionFirefighters 38.0 37.0 37.0 37.0 37.0 36.0 34.0 33.0 33.0 33Administrative 1.0 1.0 1.0 1.5 1.5 2.5 2.5 2.5 2.0 2.0PoliceOfficers 45.0 45.0 43.0 43.0 43.0 41.5 40.0 40.0 40.0 40Civilians 19.0 17.0 19.0 18.5 18.5 18.5 17.5 18.0 18.0 18.0Public WorksPublic Works Administration4.0 5.0 5.0 5.0 5.0 5.0 5.0 4.0 4.0 4Building Maintenance3.0 3.0 4.0 6.0 6.0 6.0 6.0 6.0 6.0 7Engineering6.0 6.0 7.0 7.0 7.0 7.0 6.0 5.0 5.0 5Streets8.0 8.0 8.0 8.0 8.0 8.0 8.0 7.0 7.5 7.5Sanitation12.0 12.0 14.0 14.0 12.0 12.0 12.0 12.0 11.5 10.5Forestry8.0 9.0 6.0 9.0 9.0 9.0 0.0 0.0 0.0 0Fleet (vehicle) Maintenance6.0 6.0 5.0 5.0 5.0 7.0 6.0 6.0 6.0 6WaterWater Plant9.0 9.0 9.0 9.0 9.0 9.0 8.0 7.0 7.0 6.5Water and Sewer10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 8.5Parks16.0 16.0 11.0 7.3 7.3 7.3 16.4 15.4 15.4 15.4Recreation14.0 14.0 19.0 17.5 17.5 17.5 17.4 15.4 15.4 15.4Golf Course3.0 4.0 4.0 4.3 4.3 3.3 3.2 3.2 2.2 2.2Cemetery2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2Senior Resources3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3Sub - total City250.0 250.0 252.0 255.0 253.0 248.5 235.5 227.0 226.0 224Library29.6 29.6 29.6 30.0 29.0 27.2 29.6 27.9 27.8 28.2Total all279.6 279.6 281.6 285.0 282.0 275.7 265.1 254.9 253.8 252.2Data SourceCity Departments and employee totals as of April 30thFull-Time Equivalent EmployeesLast Ten Fiscal YearsFull-Time-Equivalent Budgeted Employees as of April 30 194
147 Table 21Function/Program2005 2006 2007 2008 2009 2010 2011 2012 2013 2014General GovernmentCity ClerkReal Estate Transfer Tax (1)Number of Transactions- - 249 283 183 261 293 297 382 440Rebates Issued- - 24 35 23 30 37 37 40 67Birth Certificates Issued2,419 2,198 2,930 2,790 2,690 2,751 1,940 2,821 2,675 2,250 Passports Issued (2)252 193 314 132 89 108 48 29 - - Community DevelopmentBuilding permits issued4,740 4,055 3,501 3,491 3,142 2,610 3,072 3,451 3,197 3418Residential construction128 44 22 33 23 4 7 11 7 13Commercial construction5 1 3 1 3 1 - 1 2 1Building inspections conducted13,021 11,945 10,880 11,343 9,284 8,060 8,392 8,645 8,925 8651Public SafetyFire protectionI.S.O. rating4 4 4 4 4 4 4 4 4 4Number of calls answered (calendar year)EMS1,465 1,446 1,477 1,624 1,558 1,041 1,211 1,607 1,726 1,574 Fire1,523 1,558 1,647 1,576 1,759 1,233 1,177 1,734 1,403 1,497 Police (calendar year)Non traffic arrests537 506 526 450 449 424 385 335 237 191 Parking violations9,655 11,189 11,898 9,530 9,626 8,472 8,757 7,114 7,013 5,979 Traffic violations4,721 4,821 4,512 3,287 5,320 3,190 2,997 2,028 2,220 1,877 Public WorksStreetsStreet resurfacing (miles) (calendar year) 3.90 4.41 1.90 10.36 3.08 5.76 6.57 7.09 5.92 5.00Potholes repaired (4)2,957 2,484 1,575 N/A N/A N/A N/A N/A N/A N/ANumber of snow eventsSalting 14 5 10 20 8 14 15 14 23 27Plowing10 9 16 36 25 15 20 12 12 21Inches of snow46 47 33 83 72 56 60 21 36 48SanitationRefuse collection customers5,896 6,217 6,316 6,356 6,361 6,361 6,471 6,471 6,472 6,462 CITY OF LAKE FOREST, ILLINOISOperating Indicators Last Ten Fiscal Years 195
148 Table 21Function/Program2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Parks and Recreation (3)Fitness Number of programs565 533 478 370 348 349 334 322 264 336 Units of participation2,616 2,657 2,228 1,796 1,648 1,355 1,393 1,196 1,060 1,587 AthleticsNumber of programs200 199 210 220 213 278 157 309 283 270 Units of Participation3,369 3,279 3,189 3,232 3,253 3,148 2,416 2,932 2,704 2,524 Lakefront, Early Childhood Educationand Lifetime ActivitiesNumber of programs324 323 337 343 307 306 420 395 319 294 Units of participation2,169 1,932 1,874 1,873 1,541 1,402 1,344 1,424 1,576 1,380 Cultural Arts/Special EventsNumber of programs356 436 417 326 338 292 320 270 306 286 Units of participation2,894 3,831 3,618 2,454 2,536 2,274 2,262 2,008 1,972 1,999 Wildlife Discovery Center, Ridge Teams Course and AdventureNumber of programs227 231 224 221 176146 124 1043747Units of participation1,273 1,335 1,274 1,157 969 772 627 582 301 360Developed parks and recreation areas10 10 10 10 10 10 10 10 10 10Developed park acreage370.5 370.5 395.5 395.5 395.5 395.5 415.0 404.0 403.7 404Sites with playgrounds8 8 8 8 8 8 8 8 9 9Sites with baseball diamonds7 7 7 7 7 7 7 8 8 8Sites with soccer fields7 7 7 7 7 7 7 7 7 7Sites with basketball courts4 4 4 4 4 4 5 5 5 5Sites with tennis courts6 6 6 6 6 6 6 6 6 6Deer Path Golf CourseSize18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holesRounds of Play34,500 38,700 36,500 39,900 35,494 35,079 32,664 31,949 30,321 29,435 Daily fee18,000 18,600 17,000 18,000 15,500 15,839 15,102 14,466 13,646 17,449 Seasonal16,500 20,100 19,500 21,900 19,994 19,240 17,564 17,483 16,675 11,986 CITY OF LAKE FOREST, ILLINOISOperating Indicators (Continued)Last Ten Fiscal Years 196
149 Table 21Function/Program2005 2006 2007 2008 2009 2010 2011 2012 2013 2014WaterNew Connections (tap-ons)140 99 52 34 39 16 19 22 20 28Meters in operation6,566 6,633 6,695 6,681 6,771 6,774 6,761 6,755 6,754 6,751 Meters connected to sewerage system 6,137 6,501 6,482 6,520 6,550 6,570 6,570 6,583 6,584 6,587 Average daily consumption (MGD)3.942 4.913 3.931 4.182 3.737 3.611 3.669 3.759 4.202 3,652 Peak daily consumption (MGD)9.394 12.407 10.773 9.477 9.883 9.389 8.982 11.805 10.298 8.611Rated daily pumping capacity (MGD)14 14 14 14 14 14 14 14 14 14Total gallons pumped during fiscal year(in millions)1,421.8 1,777.6 1,441.6 1,525.1 1,441.7 1,321.1 1,336.5 1,372.0 1,534.0 1,332.8 Municipal paid parking facilitiesLong-term parking spacesMiscellaneous lots813 813 813 813 813 813 813 813 813 813 Union Pacific (CBD district)98 98 98 98 98 98 98 98 98 98 Metra (Telegraph Road)502 502 502 502 502 502 502 502 502 502 Short-term parking spaces341 341 341 341 341 341 341 341 341 341 Component UnitLibrary servicesBooks and non print materials128,817 133,893 137,343 140,171 143,518 142,654 145,496 145,539 147,330 148,318 Registered borrowers13,634 13,820 14,002 14,233 14,490 15,145 15,645 16,200 15,160 15,403 Fiscal yearbooks, items or materials circulation399,844 398,504 407,399 415,547 406,998 488,056 465,927 485,450 45,632 450,876 Data SourceCity departments(1) Collection of real estate transfer tax began in July 2006 (FY2007). (2) The City began to issue passports in FY2003 and stopped in FY2012.(3) a. Fitness data does not include Fitness Center memberships b. Units of participation may include an individual more than once(4) Department stopped tracking after FY2007.N/A = data not availableLast Ten Fiscal YearsCITY OF LAKE FOREST, ILLINOISOperating Indicators (Continued) 197
150 CITY OF LAKE FOREST, ILLINOIS Table 22Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Public SafetyPoliceStations 1 1 1 1 1 1 1 1 1 1 Vehicles23 23 23 23 23 23 23 23 25 23 Fire protectionStations2 2 2 2 2 2 2 2 2 2 Vehicles14 14 14 14 14 14 14 14 14 17 Public WorksBridgesVehicle14 14 14 14 14 14 14 14 14 14 Pedestrian7 7 7 7 7 7 7 7 7 7 StreetsStreets (centerline miles) 118.40 118.66 118.66 118.66 119.00 119.00 119.00 119.00 119.00 119.24StreetlightsGas438 438 438 438 438 438 438 438 438 438 Electric1,438 1,452 1,460 1,460 1,460 1,473 1,526 1,526 1,526 1,536 Storm sewer (miles)216.14 217.56 218.26 218.26 218.29 219.17 219.35 219.41 219.41 219.41 Parks and RecreationAcreage370.5 370.5 395.5 395.5 395.5 395.5 415.0 404.0 404 404 WaterWater mains (miles)160.03 160.51 163.33 164.27 165.25 165.25 165.25 165.25 165.25 165.79 Fire hydrants1,350 1,350 1,353 1,331 1,362 1,362 1,362 1,362 1,362 1,362 WastewaterSanitary sewers (miles) 136.06 136.12 137.60 138.39 138.71 138.90 138.90 138.95 138.95 138.95 Data SourceCity departmentsN/A equals data not availableCapital Asset StatisticsLast Ten Fiscal Years 198
The City of Lake Forest
CITY COUNCIL
Proceedings of the October 20, 2014
City Council Meeting immediately following Finance Committee meeting. City Council Chambers
CALL TO ORDER AND ROLL CALL: Honorable Mayor Schoenheider called the meeting to order at
7:05 pm, and Deputy City Clerk Margaret Boyer called the roll of Council members.
Present: Mayor Schoenheider, Alderman Waldeck, Alderman Beidler, Alderman Moore, Alderman
Pandaleon, Alderman Reisenberg, Alderman Adelman and Alderman Moreno.
Absent: Alderman Tack.
Also present were: Bob Kiely, City Manager, Victor Filippini, City Attorney; Carina Walters,
Assistant City Manager; Susan Banks, Communications Manager; Catherine Czerniak, Director of
Community Development; Chuck Myers, Superintendent of Parks & Forestry; Elizabeth Holleb,
Director of Finance; Diane Hall, Assistant Finance Director; Bob Ells, Superintendent Engineering;
and Michael Thomas, Director of Public Works; Jeff Howell, Fire Chief, Kevin Issel, Deputy Fire
Chief; Todd Nahigian, CROYA Manager.
There were approximately 40 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. Swear in Firefighter Paramedic- Chuck Kriens
Mayor Schoenheider and Fire Chief Jeff Howell
Jeff Howell introduced Chuck Kriens to the City Council and Mayor Schoenheider swore him in.
Mayor Schoenheider reminded residents of the Town Hall meeting to be held at CROYA at 7 pm
on Thursday, October 23, 2014. He also reported that the City Council took a tour of Forest Park
and encouraged all residents to see the improvements. He added that the Forest Park Project is
about eighty percent funded and all contributions big and small are welcome. More information
can be found at theforestparkproject.com website.
COMMENTS BY CITY MANAGER
City Manager, Robert Kiely stated that the tabled epoxy floor bid from the October 6, 2014 agenda
has been dismissed, Staff will not proceed and all Bids will be dismissed.
A. Community Spotlight
CROYA Manager, Todd Nahigian
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Todd Nahigian, Manager of CROYA presented a video that was created by students at CROYA. The
video highlighted the programs available through CROYA and the positive impact the programs
and the staff have on the youth in the community. Kelli Jacobs, Chair of the Youth Board, reported
how the social programs, along with the leadership programs, have opened doors of opportunity
for her and others. Mr. Nahigian stated that the partnerships that CROYA has with the Schools,
American Legion, and other local groups, play an important role in the success and in the
challenges that students face today. Mayor Schoenheider thanked Mr. Nahigian and the staff on
behalf of the Community.
COMMENTS BY COUNCIL MEMBERS
A. Finance Committee
1. Acknowledge Receipt of the FY2014 Treasurer’s Report
Finance Committee Chairman George Pandaleon reported that this item had been discussed in the
Finance Committee meeting and that the Council is required to acknowledge the receipt of the
2014 Treasurer’s Report.
Mayor Schoenheider asked if there were any questions. Seeing none, he asked for a motion.
COUNCIL ACTION: Acknowledge receipt of the FY2014 Treasurer’s Report.
Alderman Reisenberg made a motion acknowledging the receipt of the FY2014 Treasurer’s report,
seconded by Alderman Moreno. The following voted “Yea”: Aldermen Waldeck, Beidler, Moore,
Pandaleon, Reisenberg, Adelman and Moreno. The following voted “Nay”: None. 7 Yeas, 0 Nays,
motion carried.
B. Property and Public Land Committee
1. Consideration of Three Recommendations from the Property and Public Land
Committee Related to the Process for Considering the Establishment of a Tax
Increment Finance District. (Waive first reading and grant final approval of two
Ordinances and approve a Resolution.)
Chairman of the Property and Public Land Committee, Jack Reisenberg stated that in September,
the City Council approved a Resolution authorizing and directing the Property and Public Land
Committee, the City’s TIF Consultant and City staff to proceed with preparations and actions
concerning the possible establishment of a TIF District for the Western and Laurel Avenues
redevelopment site.
Chairman Reisenberg reported that the PPL is recommending that the City Council take three
actions for consideration of the establishment of a Tax Increment Financing (TIF) District.
1. Approval of an Ordinance setting the public hearing date for consideration of a TIF District
for the Western and Laurel Avenues Redevelopment Project.
2. Approval of the TIF Inducement Resolution by motion.
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3. Approval of an Ordinance approving the establishment of an “Interested Parties Registry”
and Adopting Registration Rules.
Chairman Reisenberg added that the three actions recommended by the PPL do not approve or
authorize the establishment of a TIF District, but instead, allow the public review process for
considering the proposed TIF District to get underway.
The City Council discussed the TIF Resolution. City Attorney, Victor Filippini and Lee Brown, the
City’s TIF Consultant, clarified the Resolution and what it authorizes (no additional expenditures,
other then what has been spent to start the process). Mr. Brown added that the
recommendations from the PPL are necessary next steps in the process of considering a TIF
District, and that staff has procedural requirements. Nothing is final until the City Council gives its
approval.
Mayor Schoenheider asked if there was anyone from the public who wanted to comment or had a
question on this item. Seeing none, he asked for approval, taking each item separately.
COUNCIL ACTION:
1. Waive first reading and grant final approval of an Ordinance setting the public hearing
date for consideration of a TIF District for the Proposed Laurel and Western Avenues
Redevelopment Project.
Alderman Moore made a motion to waive first reading and grant final approval of an Ordinance
setting the public hearing date for consideration of a TIF District for the Proposed Laurel and
Western Avenues Redevelopment Project, seconded by Alderman Moreno. The following voted
“Yea”: Aldermen Waldeck, Beidler, Moore, Pandaleon, Reisenberg, Adelman and Moreno. The
following voted “Nay”: None. 7 Yeas, 0 Nays, motion carried.
2. Approve the TIF Inducement Resolution by motion.
Alderman Pandaleon made a motion to approve the TIF Inducement Resolution by motion,
seconded by Alderman Beidler. The following voted “Yea”: Aldermen Waldeck, Beidler, Moore,
Pandaleon, Reisenberg, Adelman and Moreno. The following voted “Nay”: None. 7 Yeas, 0 Nays,
motion carried.
3. Waive first reading and grant final approval of an Ordinance establishing an Interested
Parties Registry and adopting associated rules.
Alderman Beidler made a motion to waive first reading and grant final approval of an Ordinance
establishing an Interested Parties Registry and adopting associated rules, seconded by Alderman
Moore. The following voted “Yea”: Aldermen Waldeck, Beidler, Moore, Pandaleon, Reisenberg,
Adelman and Moreno. The following voted “Nay”: None. 7 Yeas, 0 Nays, motion carried.
OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS
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None
ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approval of the October 6, 2014 City Council meeting Minutes
2. Recommendation from Parks and Recreation Board and Golf Advisory
Committee to enter into a contract with KemperSports, Inc. for the management
of Deerpath Golf Course
3. Consideration of a Recommendation from the Zoning Board of Appeals in
Support of an Amendment to the Special Use Permit for the Lake Forest Club
Approving a Modified Master Site Plan. (First Reading, and if desired by the City
Council, Final Approval)
COUNCIL ACTION: Approve the three (3) Omnibus items as presented.
Mayor Schoenheider asked the Council if they would like any item removed or be taken
separately. Seeing none, he asked for a motion to approve the three (3) Omnibus items as
presented.
Alderman Reisenberg made a motion approving the three (3) Omnibus items as presented,
seconded by Alderman Beidler. The following voted “Yea”: Aldermen Waldeck, Beidler, Moore,
Pandaleon, Reisenberg, Adelman and Moreno. The following voted “Nay”: None. 7 Yeas, 0 Nays,
motion carried.
Information such as Purpose and Action Requested, Background/Discussion, Budget/Fiscal Impact,
Recommended Action and a Staff Contact as it relates to the Omnibus items can be found on the agenda.
ORDINANCES
1. Consideration of a Recommendation from the Plan Commission in Support of
Final Plat Approval of the Spiel Planned Preservation Subdivision and Approval
of the Associated Special Use Permit. (If desired by the Council, Waive First
Reading and Grant Approval of the Final Development Plan Ordinance.)
This item was tabled by the City Council.
2. Consideration of a Recommendation from the Plan Commission in Support of
Actions Related to Tentative Approval of the Oak Knoll Woodlands Subdivision.
(If desired by the Council, Grant First Reading of An Ordinance and Grant
Tentative Approval of the Plat of Subdivision by Motion)
Director of Community Development, Catherine Czerniak, reported that the Plan Commission held
a public hearing on this petition in May and September of this year. At the conclusion of the Plan
Commission’s third meeting on this petition, the Commission concluded that all of the applicable
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requirements and criteria were satisfied for tentative approval and recommend first reading of an
Ordinance approving a zone change to R-4 and application of the overlay district and tentative
approval of the plat of subdivision. Importantly, these tentative approvals indicate support for the
overall plan but do not authorize the development to proceed.
Ms. Czerniak added that the 30 acre parcel is located east of the Conway Farms development,
north of Conway Road, at the north end of Oak Knoll Drive. She added that this is the last parcel of
significant size available for development in this area and was recently acquired by a developer as
part of the settling of an estate.
The 16-lot Planned Preservation Subdivision is proposed on the 30-acre parcel. In order to achieve
the proposed development, a zone change from R-5 to R-4, application of the Historic Residential
Open Space Preservation Zoning District, and tentative approval of the plat of subdivision are
being requested. The overlay district requires that the density of the development is consistent
with the underlying zoning district, but allows flexibility in lot sizes and setbacks in exchange for
preservation of open space, wetlands and woodlands. This conservation subdivision approach has
led to other successful developments in the community including the Conway Farms, Middlefork
Farm and Everett Farm subdivisions.
The Director added that tentative approval allows the petitioner to proceed with detailed
engineering work, preparation of detailed tree preservation and tree removal plans, a detailed
landscape plan, development of the final plat of subdivision and completion of the various
documents required for final approval. Once all of the requirements for final approval are met,
and after review by City staff, the final plans will again be considered by the Plan Commission at a
public hearing and a final recommendation will be forwarded to the City Council for action on this
project. She reported that tentative approval is valid for 12 months from the date of Council
approval.
Mayor Schoenheider asked if there was anyone from the Public who would like to comment.
Seeing none, he asked for a motion.
COUNCIL ACTION: If determined to be appropriate by the City Council:
1. Grant first reading of an Ordinance rezoning the 30 –acre parcel from R-5 to R-4 and
applying the Historic Residential and Open Space Overlay District.
Alderman Reisenberg made a motion to Grant first reading of an Ordinance rezoning the 30 –acre
parcel from R-5 to R-4 and applying the Historic Residential and Open Space Overlay District,
seconded by Alderman Beidler. The following voted “Yea”: Aldermen Waldeck, Beidler, Moore,
Pandaleon, Reisenberg, Adelman and Moreno. The following voted “Nay”: None. 7 Yeas, 0 Nays,
motion carried.
AND
2. Approve a motion granting tentative approval of the Oak Knoll Woodlands Planned
Preservation Subdivision subject to the conditions of approval as recommended by the
Plan Commission, conditioned on the ultimate approval of the zoning to R-4 and the
Overlay District.
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Alderman Reisenberg made a motion to approve a motion granting tentative approval of the Oak
Knoll Woodlands Planned Preservation Subdivision subject to the conditions of approval as
recommended by the Plan Commission, conditioned on the ultimate approval of the zoning to R-4
and the Overlay District, seconded by Alderman Moreno. The following voted “Yea”: Aldermen
Waldeck, Beidler, Moore, Pandaleon, Reisenberg, Adelman and Moreno. The following voted
“Nay”: None. 7 Yeas, 0 Nays, motion carried.
NEW BUSINESS
1. Metra Commuter Rail Update
Norm Carlson, Metra Board of Directors, Lake County Representative
Mr. Carlson made a report emphasizing safety around railroads and the importance of endorsing
the mission of “Operation Lifesaver”, and asked the City to help promote “Education, Engineering
and Enforcement”
2. Update on the East Train Station and West Train Station
Assistant City Manager Carina Walters reported on the project goals included, public and
commuter safety, congestion mitigation, regional services and economic vitality.
The West Train Station Pedestrian Underpass process for construction;
• Agreements with Metra & IDOT & CLF – Completed
• Phase 1 – Preliminary Engineering
• Phase 2 – Engineering Design – Pending
• Identify Funding Gap
• Phase 3 - Construction – Pending
The East Train Station
• 2010 the City has received over $2 million in ITEP Funding
• Completed portion of Phase 1 Exterior (Roof, Dormers)
• Phase 2 – In process (November bid letting)
• 2012 City has received approximately $1 million to separate pedestrian/ vehicular/ bicycle
traffic (Illinois to Woodland)
• Utility work is underway
• Agreements will be finalized
• Construction in Spring 2015
ADDITIONAL ITEMS FOR COUNCIL DISCUSSION
Alderman Adelman thanked Michael Thomas and the Public Works department on the paving
work that has been completed around The City of Lake Forest.
ADJOURNMENT
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There being no further business. Alderman Reisenberg made a motion to adjourn, seconded by
Alderman Moore Motion carried unanimously by voice vote at 8:55 p.m.
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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THE CITY OF LAKE FOREST
ORDINANCE NO. 2014-
AN ORDINANCE PROHIBITING THE USEOF GROUNDWATER AS A
POTABLE WATER SUPPLY BY THE INSTALLATION OR USE OF
POTABLE WATER SUPPLY WELLS OR BY ANY OTHER METHOD
Adopted by the
Mayor and City Council
Of
The City of Lake Forest
this day of , 2014
Published in pamphlet form by direction
and authority of the City of Lake Forest
Lake County, Illinois
this day of , 2014
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THE CITY OF LAKE FOREST
ORDINANCE NO. 2014-
AN ORDINANCE PROHIBITING THE USE OF GROUNDWATER AS A
POTABLE WATER SUPPLY BY THE INSTALLATION OR USE OF
POTABLE WATER SUPPLY WELLS OR BY ANY OTHER METHOD
WHEREAS, certain properties in The City of Lake Forest, Illinois (the “City”) have
been used over a period of time for commercial/industrial purposes; and
WHEREAS, because of said use, concentrations of certain chemical constituents in the
groundwater beneath the City may exceed Class I groundwater quality standards for potable
resource groundwater as set forth in 35 Ill. Adm. Code620 or Tier I remediation objectives as set
forth in 35 Ill. Adm. Code742: and
WHEREAS, the City desires to limit potential threats to human health from groundwater
contamination while facilitating the redevelopment and productive use of properties that are the
source of said chemical constituents;
NOW THEREFORE, BE IT ORDAINED by the Mayor and City Council of The City
of Lake Forest, County of Lake, State of Illinois, as follows:
SECTION ONE: Recitals. The foregoing recitals are incorporated herein as findings
of the Mayor and City Council.
SECTION TWO: Water Use Prohibition. Except for such uses or methods in
existence before the effective date of this Ordinance, the use or attempt to use as a potable water
supply groundwater from within the area of the corporate limits of The City of Lake Forest
generally described as follows:
the area located at 260 East Illinois Road ( PIN# 1233119014), adjacent properties
located at 580 North Bank Lane (PIN# 1233119013), 585 North Bank Lane (PIN#
1233120024), 280 East Illinois Road (PIN#s 1233120011, 1233120015), 576 North
Western Avenue (PIN# 1233120016), 281 East Illinois Road (PIN# 1233124001), 291
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East Illinois Road (PIN# 1233124002), 255 Illinois Road (PIN#s 1233123039,
1233123041), and the Bank Lane and Illinois Road right of ways immediately adjoining
the referenced properties
and as depicted on Exhibit A attached hereto and made a part hereof, as a potable water supply,
by the installation or drilling wells or by another method is hereby prohibited. This prohibition
expressly includes The City of Lake Forest.
SECTION THREE: Penalties. Any person violating the provisions of this ordinance
shall be subject to a fine of up to seven hundred fifty dollars ($750.00) for each violation.
SECTION FOUR: Definitions.
A. “Person” is any individual, partnership, co-partnership, firm, company, limited
liability company, corporation, association, joint stock company, trust, estate, political
subdivision, or any other legal entity, or their legal representatives, agents or assigns.
B. “Potable water” is any water used for human or domestic consumption,
including, but not limited to, water used for drinking, bathing, swimming, washing dishes, or
preparing foods.
SECTION FIVE: Repealer. All ordinances or parts of ordinances in conflict with this
Ordinance are hereby repealed insofar as they are in conflict with this Ordinance.
SECTION SIX: Severability. If any provision of this Ordinance or its application to
any person or under any circumstances is adjudged invalid, such adjudication shall not affect the
validity of the Ordinance as a whole or of any portion not adjudicated invalid.
SECTION SEVEN: Effective Date. This ordinance shall be in full force and effect
from and after its passage, approval, and publication in the manner provided by law; provided,
however, that this Ordinance shall not be effective until the Highway Authorization Agreement
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and Supplemental Highway Authority Agreement approved on this same day by Resolution of
the City Council have been fully executed by the City and the parties thereto.
PASSED this day of , 2014
AYES:
NAYS:
ABSENT:
ABSTAIN:
APPROVED this day of , 2014
By:
ATTEST:
City Clerk
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EXHIBIT A
Potable Groundwater Prohibition Area
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THE CITY OF LAKE FOREST
RESOLUTION NO. ________
RESOLUTION APPROVING HIGHWAY AUTHORIZATION AGREEMENT
AND SUPPLEMENTAL HIGHWAY AUTHORIZATION AGREEMENT WITH EXXON MOBIL
WHEREAS, The City of Lake Forest (the “City”) owns certain rights-of-way adjacent to
the real property commonly known as 260 East Illinois Road, lake Forest, Illinois (the
“Property”), which Property had previously been used as a gasoline service station; and
WHEREAS, the Property was found to have had leaking underground storage tanks,
which has resulted in one or more releases of contaminants (the “Release”), causing soil and/or
groundwater contamination; and
WHEREAS, the Release includes migration of contaminants into the soils and/or
groundwater underlying City rights-of-way in the vicinity of the Property; and
WHEREAS, in order to mitigate the effects of the Release, Exxon Mobil Corporation
(“Exxon Mobil”) is seeking approvals from the Illinois Environmental Protection Agency
consistent with the Tier 1 residential remediation objectives of 35 Ill. Adm. Code 742; and
WHEREAS, the City desires to assist Exxon Mobil is the remediation of the
contaminants, and to that end Exxon Mobil has presented the City with a “Highway
Authorization Agreement” (which agreement in attached to this Resolution as Exhibit A) and a
“Supplemental Agreement” (which agreement in attached to this Resolution as Exhibit
B)(collectively, the Highway Authorization Agreement and the Supplemental Agreement shall
hereinafter be referred to as the “Agreements”); and
WHEREAS, the City Council has determined that Agreements are appropriate and in the
best interests of the City and its residents;
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF
THE CITY OF LAKE FOREST, COUNTY OF LAKE, STATE OF ILLINOIS, as follows:
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SECTION ONE: Recitals. The foregoing recitals are incorporated into and made a
part of this Resolution as if fully set forth in this Section.
SECTION TWO: Approval of Agreements. The City Council hereby approves the
Agreements in substantially the form attached as Exhibit A and Exhibit B to this Resolution. The
Mayor and City Clerk are hereby authorized and directed to execute the Agreement on behalf of
the City; provided, however, that neither the Mayor nor the City Clerk shall execute or attest the
Agreements unless and until Exxon Mobil has signed and delivered the Agreements to the City.
SECTION THREE: Effective Date. This Resolution shall be in full force and effect
immediately upon its adoption.
Adopted this ____ day of __________________, 2014.
___________________________________
Mayor
Attest:
___________________________
City Clerk
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EXHIBIT A
HIGHWAY AUTHORIZATION AGREEMENT
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EXHIBIT B
SUPPLEMENTAL AGREEMENT
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HIGHWAY AUTHORITY AGREEMENT
This Agreement is entered into this ____ day of _____________________ , 20 __
pursuant to 35 Ill. Adm. Code 742.1020 by and between (1) ExxonMobil Oil Corporation
("Owner/Operator”) and (2) The City of Lake Forest ("Highway Authority”), collectively known
as the "Parties.”
WHEREAS, ExxonMobil Corporation is the owner or operator of one or more leaking
underground storage tanks presently or formerly located at 260 East Illinois Road, Lake Forest,
Illinois ("the Site”);
WHEREAS, as a result of one or more releases of contaminants from the above-
referenced underground storage tanks ("the Release”), soil and/or groundwater contamination at
the Site exceeds the Tier 1 residential remediation objectives of 35 Ill. Adm. Code 742;
WHEREAS, the soil and/or groundwater contamination exceeding Tier 1 residential
remediation objectives extends or may extend into the Highway Authority’s right-of-way;
WHEREAS, the Owner/Operator is conducting corrective action in response to the
Release;
WHEREAS, the Parties desire to prevent groundwater beneath the Highway Authority’s
right-of-way that exceeds Tier 1 remediation objectives from use as a supply of potable or
domestic water and to limit access to soil within the right-of-way that exceeds Tier 1 residential
remediation objectives so that human health and the environment are protected during and after
any access;
NOW, THEREFORE, the Parties agree as follows:
1. The recitals set forth above are incorporated by reference as if fully set forth
herein.
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2. The Owner/Operator represents Illinois Emergency Management Agency (the
“Agency”) has assigned incident numbers 900181, 20050367 to the Release.
3. Attached as Exhibit A is a scaled map(s) prepared by the Owner/Operator that
shows the Site and surrounding area and delineates the current and estimated future extent of
soil and groundwater contamination above the applicable Tier 1 residential remediation
objectives as a result of the Release.
4. Attached as Exhibit B is a table(s) prepared by the Owner/Operator that lists each
contaminant of concern that exceeds its Tier 1 residential remediation objective, its Tier 1
residential remediation objective, and its concentrations within the zone where Tier 1 residential
remediation objectives are exceeded. The location of the concentrations listed in Exhibit B are
identified on the map(s) in Exhibit A.
5. Attached as Exhibit C is a scaled map prepared by the Owner/Operator showing
the area of the Highway Authority’s right-of-way that is governed by this agreement ("Right-of-
Way”). Because Exhibit C is not a surveyed plat, the Right-of-Way boundary may be an
approximation of the actual Right-of-Way lines.
6. The Highway Authority stipulates it has jurisdiction over the Right-of-Way that
gives it sole control over the use of the groundwater and access to the soil located within or
beneath the Right-of-Way.
7. The Highway Authority agrees to prohibit within the Right-of-Way all potable
and domestic uses of groundwater exceeding Tier 1 residential remediation objectives.
8. The Highway Authority further agrees to limit access by itself and others to soil
within the Right-of-Way exceeding Tier 1 residential remediation objectives. Access shall be
allowed only if human health (including worker safety) and the environment are protected
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during and after any access. The Highway Authority may construct, reconstruct, improve,
repair, maintain and operate a highway upon the Right-of-Way, or allow others to do the same
by permit. In addition, the Highway Authority and others using or working in the Right-of-Way
under permit have the right to remove soil or groundwater from the Right-of-Way and dispose of
the same in accordance with applicable environmental laws and regulations. The Highway
Authority agrees to issue all permits for work in the Right-of-Way, and make all existing permits
for work in the Right-of-Way, subject to the following or a substantially similar condition:
As a condition of this permit the permittee shall request the office issuing this
permit to identify sites in the Right-of-Way where a Highway Authority
Agreement governs access to soil that exceeds the Tier 1 residential
remediation objectives of 35 Ill. Adm. Code 742. The permittee shall take
all measures necessary to protect human health (including worker safety)
and the environment during and after any access to such soil.
9. This agreement shall be referenced in the Agency’s no further remediation
determination issued for the Release.
10. The Agency shall be notified of any transfer of jurisdiction over the Right-
of-Way at least 30 days prior to the date the transfer takes effect. This agreement shall be
null and void upon the transfer unless the transferee agrees to be bound by this agreement
as if the transferee were an original party to this agreement. The transferee’s agreement to
be bound by the terms of this agreement shall be memorialized at the time of transfer in a
writing ("Rider”) that references this Highway Authority Agreement and is signed by the
Highway Authority, or subsequent transferor, and the transferee.
11. This agreement shall become effective on the date the Agency issues a no further
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remediation determination for the Release. It shall remain effective until the Right-of-Way is
demonstrated to be suitable for unrestricted use and the Agency issues a new no further
remediation determination to reflect there is no longer a need for this agreement, or until the
agreement is otherwise terminated or voided.
12 In addition to any other remedies that may be available, the Agency may
bring suit to enforce the terms of this agreement or may, in its sole discretion, declare this
agreement null and void if any of the Parties or any transferee violates any term of this
agreement. The Parties or transferee shall be notified in writing of any such declaration.
13. This agreement shall be null and void if a court of competent jurisdiction
strikes down any part or provision of the agreement.
14. This agreement supersedes any prior written or oral agreements or
understandings between the Parties on the subject matter addressed herein. It may be
altered, modified or amended only upon the written consent and agreement of the Parties.
15. Any notices or other correspondence regarding this agreement shall be sent
to the Parties at following addresses:
Manager, Division of Remediation Management ExxonMobil Company
Bureau of Land ATTN: Sabrina Siu, Project
Illinois Environmental Protection Agency Manager, ExxonMobil
P.O. Box 19276 Environmental Services Company
Springfield, IL 62794-9276 25915 South Frontage Road East
Bldg SH&E, Room 236
Channahon, IL 60410-8723
Mr. Robert R. Kiely, Jr. Mr. Robert Ells
City Manager Engineering Department
The City of Lake Forest The City of Lake Forest
220 East Deerpath 800 Field Drive
Lake Forest, Illinois 60045 Lake Forest, Illinois 60045
IN WITNESS WHEREOF, the Parties have caused this agreement to be signed by
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their duly authorized representatives.
Date:_________________________ The City of Lake Forest, Illinois
By:
By:
Date: Owner/Operator
ExxonMobil Oil Corporation
By:
Michael A. Lamarre
Title: US North Executive Area Manager
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EXHIBIT A
Extent of Soil and Groundwater Contamination
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EXHIBIT B
Contamination Tables
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EXHIBIT C
Map of Right-of-Way
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SUPPLEMENTAL AGREEMENT
TIERED APPROACH TO CORRECTION OBJECTIVES AGREEMENT
This Agreement is entered into this day of , 20 pursuant to 35 Ill.
Adm. Code 742.1020 by and between ExxonMobil Oil Corporation referred to herein as
“Owner/Operator”, and The City of Lake Forest (“City”). The Owner/Operator and City are
referred to as “Parties.”
1. This Agreement is not binding upon the City until it is signed by the undersigned
representative of the City and before signing, this Agreement constitutes an offer by
Owner/Operator. The duly authorized representative of Owner/Operator has signed this
Agreement, and this Agreement is binding upon it, its successors and assigns, upon execution by
the City.
2. Owner/Operator Stipulates:
a. Owner/Operator is pursuing Corrective Action for the property located at 260
East Illinois Road, Lake Forest, IL (“the Site”). The Illinois Emergency Management Agency
has assigned Incident Numbers 900181, 20050367 to this matter. The property located at 260
East Illinois Road, Lake Forest, IL and Incident Numbers 900181, 20050367 are sometimes
collectively referred to as “the Site” or “Incident Numbers 900181, 20050367.” As part of the
Owner/Operator’s Corrective Action, the Owner/Operator and the City have entered into a
Highway Authority Agreement (the “HAA”) for the road (“Right-of-Way”) located along the
property frontage, which HAA (including its exhibits) is attached hereto as Exhibit 1 and made a
part hereof. The City has agreed to adopt an ordinance prohibiting the use of groundwater as a
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potable water supply within the area of the corporate limits of Lake Forest described in the
ordinance and depicted on Exhibit A of the Ordinance (“the Ordinance”), which Ordinance (with
its exhibits) is attached hereto as Exhibit 2 and made a part hereof. For purposes of this
agreement, “Corrective Action” is defined as active remediation, passive remediation,
investigation and monitoring of “Contaminants of Concern” which are defined as those
contaminants released from the Site which have possibly impacted soil/and or ground water
within the Right-of-Way or within the area covered by the Ordinance in excess of applicable
Tier 1 objectives as described in Exhibits A and B of the HAA and Exhibit A of the Ordinance,
or any combination of these activities defined herein.
b. Attached as Exhibits A and B to the HAA are; (i) site maps prepared by
Owner/Operator which show the area of estimated contaminated soil and/or groundwater at the
time of this Agreement in the Right-of-Way above Tier 1 residential levels under 35 Ill. Adm.
Code 742; and (ii) tables prepared by Owner/Operator showing concentrations of Contaminants
of Concern, hereafter “Contaminants,” in soil and/or groundwater within the area described in
Exhibit A and which shows the applicable Tier 1 soil remediation objectives for property and
Tier 1 objectives for groundwater of the Illinois Pollution Control Board (“IPCB”) that are
exceeded. The Right-of-Way, and only the Right-of-Way, as described in Exhibit C of the HAA,
adjacent to the Site and adjoining property is subject to this Agreement. As the drawings in the
Exhibits are not surveyed plats, the boundary of the Right-of-Way in the Exhibits may be an
approximation of the actual Right-of-Way lines. Contaminants have been delineated into the
Right-of-Way, the Owner/Operator has represented that the area of the Right-of-Way is adequate
to encompass soil and groundwater in the Right-of-Way possibly impacted with Contaminants
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from a release at the Site.
c. The Illinois Emergency Management Agency has assigned Incident
Numbers 900181, 20050367 to this matter.
d. Owner/Operator intends to request risk-based, site specific soil and/or
groundwater remediation objectives from the Illinois Environmental Protection Agency
(“IEPA”) under 35 Ill. Adm. Code 742.
e. Under these rules, use of risk-based, site specific remediation objectives in the
Right- of-Way may require the use of a highway authority agreement as defined in 35 Ill. Adm.
Code 742.1020, in substantially the form of the HAA.
3. The City stipulates that:
The City holds a fee simple interest or a dedication for highway purposes in the Right-of-
Way, or the Right-of-Way is a platted street, and has jurisdiction of the Right-of-Way. As such,
the City exercises access control over the use of the ground water beneath the Right-of-Way and
over access to the soil beneath the Right-of-Way.
4. The Parties stipulate that:
a. Contemporaneously with the execution of this Agreement, ExxonMobil and the
City have executed the HAA attached hereto as Exhibit 1, and will submit the executed HAA to
the IEPA. Under 35 Ill. Adm. Code 742.1020, this Agreement is intended to establish
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undertakings by the Owner/Operator to the City in consideration of the City entering into the
HAA and the City’s agreements herein that it will not allow the use of groundwater under the
Right-of-Way as a potable or other domestic supply of water, and that it will limit access as
described herein to soil under the Right-of-Way that is contaminated from the release at levels
above residential Tier 1 remediation objectives. Contemporaneously with the execution of this
Agreement, the City has passed the Ordinance attached hereto as Exhibit 2, and Owner/Operator
will submit the Ordinance to the IEPA.
b. The IEPA and/or Attorney General (“AG”) must review and approve the HAA ,
and the HAA shall be referenced in IEPA’s “No Further Remediation” determination in the
chain of title for the Site in the county where the Site is located.
c. This Agreement shall be null and void should the IEPA or AG not approve the
HAA or Ordinance, or should the HAA or Ordinance not be referenced in the “No Further
Remediation” determination, provided, however, that this Agreement shall be effective between
the Owner/Operator and the City immediately upon signature by their representatives.
5. The City promises IEPA and the Owner/Operator that it will adopt an ordinance to
prohibit the use of groundwater that is contaminated from the release at the Site at levels above
Tier 1 residential remediation objectives beneath its Right-of-Way or within the area covered by
the Ordinance as a potable or other domestic supply of water and that it otherwise will limit
access to soil as described herein under the Right-of-Way that is impacted from the release at
levels above Tier 1 residential remediation objectives. As the pavement in the Right-of-Way
may be considered an engineered barrier, the Owner/Operator agrees to reimburse the City for
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such maintenance activities requested by Owner/Operator or the IEPA in writing as are
reasonably necessary to maintain such pavement area(s) as a barrier. The City does not
otherwise agree to perform maintenance of the Right-of-Way, nor does it agree that the Right-
of-Way will always remain a highway or that it will maintain the Right-of-Way as an engineered
barrier.
6. The Owner/Operator agrees to indemnify and hold harmless the City and other highway
authorities, if any, maintaining the Right-of-Way by an agreement with the City and the City’s
agents, contractors or employees for all lawsuits, claims, losses, injuries, damages, judgments,
or other obligations asserted against or costs incurred by them, including reasonable attorney’s
fees and court costs(collectively, “Obligations”), as a result of claims by third parties associated
with the release of Contaminants of Concern except those Obligations arising from the
negligence or willful misconduct of City or the City’s agents, contractors or employees.
7. As an additional consideration, and subject to the requirements of paragraph 12,
Owner/Operator agrees to reimburse the City for those reasonably necessary costs it has
incurred or will incur in responding appropriately to the suspected presence of Contaminants of
Concern in the Right-of-Way as a result of the release of contaminants at this Site, including
but not limited to, identifying, investigating, handling, storing and disposing of contaminated
soil and groundwater in the Rights-of-Way as a result of the release of Contaminants at this Site
by Owner/Operator. Owner/Operator further agrees to reimburse the City for those reasonably
necessary costs it has incurred (not exceeding $1,500.00) in reviewing and negotiating this
Agreement. The City shall document those costs for Owner/Operator in an invoice. A check
made payable to “The City of Lake Forest” shall be tendered to the City within 30 days after
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the delivery of such an invoice from the City to Owner/Operator.
8. This Agreement shall be binding upon all successors in interest to the Owner/Operator
or Right-of-Way. A successor in interest of the City would include a highway authority to
which the City would transfer jurisdiction of the highway.
9. Violation of the terms of this Agreement by Owner/Operator, or by the City, may be
grounds for voidance of this Agreement. Violation of the terms of the HAA or Ordinance by
the City will not void this Agreement, unless the IEPA has determined that the violation is
grounds for voiding the HAA or Ordinance and the City has not cured the violation within such
time as IEPA has granted to cure the violation.
10. This Agreement and the Ordinance continue in effect from the date of this Agreement
until a) the Right-of-Way is demonstrated to be suitable for unrestricted use, b) there is no
longer a need for the HAA and the Ordinance, and c) the IEPA has, upon written request to the
IEPA by the Owner/Operator and notice to the City, amended the notice in the chain of title for
the site to reflect unencumbered future use of that Right-of-Way.
11. This Agreement constitutes full settlement of claims the City may have arising from the
possible release of Contaminants of Concern associated with Incident
Numbers 900181, 20050367, and is not in settlement of claims of the IEPA or any other State
Agency.
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12. This Agreement does not limit the City’s ability to construct, reconstruct, improve,
repair, maintain and operate a highway upon its property or to allow others to use the Right-of-
Way by permit. To that extent, the City reserves the right, and the right of those using or
working in its Right-of-Way under permit, to remove contaminated soil or groundwater above
Tier 1 residential objectives from its Right-of-Way and to dispose of them as they deem
appropriate, in accordance with applicable environmental regulations, so as to avoid causing a
further release of the Contaminants and to protect human health and the environment.
Prior to taking any such action, the City shall first give Owner/Operator no less than
ninety (90) days written notice, unless there is an immediate threat to the health or safety to any
individual or to the public, prior to the scheduled letting day for work involving the Right-of-
Way. During this period, which may be extended by agreement of the Parties, the City and
Owner/Operator will engage in a good faith, collaborative process to arrive at a consensus
approach to managing the impacted soil and groundwater in the Right of Way arising from
Incident Numbers 900181, 20050367. This consensus approach will attempt to reconcile the
City’s engineering and environmental concerns for redepositing impacted soils in the Right-of-
Way with the Owner/Operator’s preference for redepositing as much soil as possible. The
removal, disposal or reuse of impacted soils shall be based upon the site investigation (which
may be modified by field conditions during excavation), which Owner/Operator may review or
may perform, if requested to do so by the City. The final decision for management will be in the
reasonable discretion of the City.
Failure to give notice is not a violation of this Agreement. If required by reasonably
documented and appropriate under applicable statute, law or regulation, the City may request
Owner/Operator to remove and dispose of the contaminated soil and/or groundwater in the
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Right-of-Way area as agreed in the collaborative process, so as to facilitate the City's work in the
Right-of-Way area at no cost to the City.
If the Owner/Operator does not perform the work itself, the Owner/Operator shall
reimburse the City for those commercially reasonable and appropriately necessary costs incurred
by the City to perform the site investigation and to respond to contaminated soil or groundwater
from Incident Numbers 900181, 20050367 which such costs are reasonably documented and
appropriately necessary to be addressed in order to allow the work within the Right-of-Way area
to be completed, provided however, that if notice to the Owner/Operator has not been given,
and/or an opportunity to engage in consensus process has not been offered, and there was no
immediate threat to human health or safety, reimbursement for these costs shall be limited to
$10,000. Invoices for reimbursement submitted to Owner/Operator by the City will be paid
within a reasonable time, but no later than January 31, of the subsequent calendar year.
There is a rebuttable presumption that the Contaminants, if any, found in the Right-of-
Way, are presumed to have arisen from the release of contaminants from the Site unless there is
a reported spill in the immediate vicinity of the Right-of-Way, or an increase in contaminant
levels from those reported to IEPA with regard to Incident Numbers 900181, 20050367. Should
Owner/Operator not reimburse the reasonable commercial costs under the conditions set forth
herein, the City may notify Owner/Operator that this Agreement and the HAA shall be null and
void, at the City’s option, upon written notice to Owner/Operator by the City that those costs
have not been reimbursed; provided, however, that Owner/Operator may cure that problem
within thirty working days by making payment, or may seek to enjoin that result.
Notwithstanding any termination of this Agreement, the City shall have the right to
enforce the reimbursement obligations of Owner/Operator, and the City shall be entitled to
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recover all of its reasonable costs (including attorneys' fees) incurred prior to termination in
connection with such enforcement.
13. Written Notice required by this Agreement must be mailed to the following: if to
Owner/Operator: ExxonMobil Company, ATTN: Sabrina Siu, Project Manager, ExxonMobil
Environmental Services Company, 25915 South Frontage Road East, Bldg. SH&E, Room 236,
Channahon, Illinois 60410-8723 ; if to City:
The City of Lake Forest
800 North Field Drive
Lake Forest, Illinois 60045
ATTN: Director of Public Works
with a copy to:
The City of Lake Forest
220 East Deerpath
Lake Forest, Illinois 60045
ATTN: City Manager
14. The City’s sole responsibility under this Agreement with respect to others using the
Right-of-Way under permit from the City is to include the following, or similar language, in
the future standard permit provisions and to make an effort to notify its current permit holders
of the following:
As a condition of this permit, the permittee shall request the District Permit
Office to identify sites in the Right-of-Way where access to contaminated soil or
groundwater is governed by Highway Authority Agreements. The permittee shall
take measures before, during and after any access to these sites to protect worker
safety and human health and the environment. Excavated, contaminated soil
should be managed off-site in accordance with all environmental laws.
Owner/Operator hereby releases the City from liability for breach of this Agreement or
the HAA by others under permit and indemnifies the City against claims that may arise from
others under permit causing a breach of this Agreement or the HAA. Owner/Operator agrees
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that its personnel, if any at the Site who are aware of the HAA, will notify anyone they know
is excavating in the Right-of-Way about the HAA.
15. Should the City breach this Agreement or the HAA or Ordinance, Owner/Operator’s
sole remedy is for an action for specific performance or for damages in the Circuit Court for
the 19th Judicial Circuit, Lake County, Illinois. Any and all claims for damages against the
City, its agents, contractors, employees or its successors in interest arising at any time for a
breach of this Agreement or the HAA or Ordinance are limited to an aggregate maximum of
$10,000.00. No other breach by the City, its agents, contractors, employees and its successors
in interest of a provision of this Agreement or the HAA or Ordinance is actionable in either
law or equity by Owner/Operator against the City or them, and Owner/Operator hereby
releases the City, its agents, contractors, employees and its successors in interest for any cause
of action it may have against them, other than as allowed in this paragraph, arising under this
Agreement or environmental laws, regulations or common law governing the impacted soil or
groundwater in the Right-of-Way or in the area covered by the Ordinance. Should the City
convey, vacate or transfer jurisdiction of that Right-of-Way, Owner/Operator may pursue an
action under this Agreement against the successors in interest, other than a State Agency, in
court.
16. This Agreement is entered into by the City in recognition of laws passed by the General
Assembly and regulations adopted by the IPCB which encourage a tiered-approach to
remediating environmental contamination. This Agreement is entered into by the City in the
spirit of those laws and under its right and obligations as property owner. Should any provisions
of this Agreement be struck down as beyond the authority of the City, however, this Agreement
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shall be null and void, except that all costs and expenses to be paid by Owner/Operator as
provided in this Supplemental Agreement which have been incurred by the City prior to
termination shall be reimbursed by Owner/Operator within 45 days after the Supplemental
Agreement becomes null and void, and Owner/Operator’s obligations under Paragraph 6 of this
Supplemental Agreement shall survive any termination of this Supplemental Agreement.
[Document continues on next page]
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Incident #900181, 20050367 IN
IN WITNESS WHEREOF, the City has caused this Agreement to be signed by its
Mayor
The City of Lake Forest
By: DATE:
Mayor
Attested By: DATE:
IN WITNESS WHEREOF, Owner/Operator, ExxonMobil Oil Corporation, has caused
this Agreement to be signed by its duly authorized representative.
By: DATE:
Michael A. Lamarre, US North Executive Area Manager
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EXHIBIT 1
HIGHWAY AUTHORITY AGREEMENT
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EXHIBIT 2
GROUNDWATER ORDINANCE
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Page 1 of 3
THE CITY OF LAKE FOREST
ORDINANCE NO. 2014-___
AN ORDINANCE AMENDING CHAPTER 46, SECTIONS 37(A), R-5, AND 38(A),
R-4, SINGLE FAMILY RESIDENCE DISTRICTS RELATING TO SECONDARY LIVING
UNITS
WHEREAS, The City of Lake Forest is a home rule, special charter
municipal corporation; and
WHEREAS, from time to time it is appropriate to review, update and
modify the City Code to address new issues and opportunities that may
arise; and
WHEREAS, a Community Engagement Forum was held in 2013 to
discuss the concept of secondary housing units and, based on the
discussion at the forum, the City Council directed further study of the
concept, and
WHEREAS, at the direction of the City Council, the Plan Commission
considered whether provisions should be added to the Code to permit,
under limited conditions, secondary living units in outbuildings and
accessory structures on certain properties zoned for single family use; and
WHEREAS, permitting the use of outbuildings and accessory
structures as secondary living units provides a unique housing opportunity
that further diversifies the housing types available in The City and may
encourage investment in and preservation of historic properties; and
WHEREAS, the Plan Commission considered this matter at a work
session on February 17, 2014 and held public hearings on the proposed
amendment on June 10, 2014 and on July 31, 2014 in accordance with
Code requirements; and
WHEREAS, the Mayor and City Council, having considered the
recommendations of the Plan Commission, have determined that
adopting this Ordinance and amending the Code provisions relating to
secondary living units as hereinafter set forth, will be in the best interests of
the City and its residents;
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NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COUNCIL OF THE CITY OF LAKE FOREST, COUNTY OF LAKE, STATE OF
ILLINOIS, as follows:
SECTION ONE: Recitals. The foregoing recitals are hereby
adopted by this reference as the findings of the City Council and are
hereby incorporated into this Section as if fully set forth.
SECTION TWO: Amendment to Chapter 46, Sections 46-37(A)
and 46-38(A), entitled "R-5, Single Family Residence District” and “R-4,
Single Family Residence District” respectively are hereby amended by
adding the following language to each Section and said Sections shall
hereafter be and read to include the following:
Section 46-37(A) R-5, Single Family Residence District
And
Section 46-38(A) R-4, Single Family Residence District
****
7. Secondary Living Units (defined as an accessory residence located on
the same property as a primary single-family residence, including, but
not limited to , Accessory Suites, In-Law Suites, Granny Flats, Coach
Houses, Garage Apartments, and Cottages) are permitted subject to
the following conditions and performance standards.
a. The primary residence is owner occupied.
b. The accessory structure within which the Secondary Living Unit is
located (the “Accessory Structure”) predates the date of adoption
of this Code provision, ________________.
c. Each Accessory Structure meets the minimum health and life safety
requirements of the Building Codes adopted by the City.
d. No more than two Secondary Living Units are permitted on a
property.
e. Adequate on site parking is provided for the tenants of the
Secondary Living Unit.
f. Secondary Living Units must be accessible by way of a driveway
located on the property on which the Accessory Structure is
located unless an access easement across a neighboring property
specifically provides for access to the Accessory Structure and
recognizes its use as a Secondary Living Unit.
g. The Accessory Structure is a minimum distance of 20’ from all
property lines. A variance from the 20’ setback requirement may
be considered by the Zoning Board of Appeals with consideration
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given to the proximity of neighboring structures and the adequacy
of landscape screening and the standard variance criteria in the
Code.
h. The property owner registers the Secondary Living Unit, on a form
provided by the City, as a rental unit with the Director of
Community Development, or the Director’s designee, on an annual
basis.
i. Secondary Living Units shall not have more than 3 people unrelated
by blood, marriage, or adoption residing within that Secondary
Living Unit at any given time.
j. A Secondary Living Unit that is rented as a nonconforming
residential unit at the time of adoption of this amendment shall be
recognized as a conforming use regardless of the setback distance
from the property lines so long as the property owner registers the
unit with the City, on a form provided by the City, as required by this
Section within one year of the date of adoption of these provisions.
Documentation of past use of the structure as a rental living unit is
required.
SECTION THREE: Effective Date. This ordinance shall be in full force
and effect upon its passage, approval, and publication in pamphlet form
in the manner provided by law.
PASSED THIS __ DAY OF ________, 2014.
AYES: ( )
NAYS: ( )
ABSENT: ( )
ABSTAIN: ( )
PASSED THIS __ DAY OF ________, 2014.
Mayor
ATTEST:
Deputy City Clerk
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