CITY COUNCIL 2015/11/02 AgendaTHE CITY OF LAKE FOREST
CITY COUNCIL AGENDA
Monday November 2, 2015
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
George Pandaleon, Alderman Second Ward Michael Adelman, Alderman Fourth Ward
Timothy Newman, 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
2. COMMENTS BY CITY MANAGER
A. Community Spotlight
Lake Forest Lake Bluff Chamber of Commerce
- Joanna Rolek, Executive Director
B. 2015 Annual Tree Lighting Event
PRESENTED BY: Bill Douglass, Lake Forest Parks & Recreation Foundation, Vice President
(847-582-7814)
STAFF CONTACT: Joe Mobile, Superintendent of Recreation (847-810-3941)
PURPOSE AND ACTION REQUESTED: To provide information regarding the Annual Tree
Lighting Event in Market Square.
BACKGROUND/DISCUSSION: The Lake Forest Parks and Recreation Foundation was
approached by City Manager Kiely earlier this year to gauge the Foundations interest in
taking on the Annual Tree Lighting Ceremony as one of its events moving forward. The
main goal of the conversation was to add new life to the event and to bring more
people into the business district for the event, as well as providing more recognition for
the Parks and Recreation Foundation. After several months of discussions the Foundation
agreed to take on the event for the City.
The 32nd Annual Tree Lighting Ceremony is scheduled for Friday, November 27. This year’s
event will be coordinated by the Lake Forest Parks and Recreation Foundation , which
also runs the 4th of July Festival and Fireworks. This annual tradition will look very similar to
years past as the Foundation would like to stay within the tradition during the first year of
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Monday, November 2, 2015 City Council Agenda
running the event. There will be a few new activities this year as well, including a
children’s holiday movie at Gorton Community Center. The Lake Forest Dance Academy
will perform and there will be comfort stations added to the event to provide community
restroom facilities.
The Foundation is hopeful that the retailers will also want to be involved this year by
hosting a passport into their stores where the visitors can get refreshments. All visitors that
fill their passport by visiting the participating retailers will be entered into a raffle for a
family pack to the 2016 Festival and Fireworks event.
Additional Refreshments provided by Lake Forest Bank & Trust
Roasted Chestnuts provided by Amidei Mercatino
COUNCIL ACTION: No Action required for informational purposed only
3. COMMENTS BY COUNCIL MEMBERS
AUDIT COMMITTEE
A. Audit Committee Report-Fiscal Year 2015 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, 2015.
BACKGROUND/DISCUSSION: The Comprehensive Annual Financial Report (CAFR) for the
fiscal year ended April 30, 2015 is provided beginning on page 11. A bound copy of the
CAFR is available upon request. 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 on its
Fiscal Year 2015 financial statements.
The City has been awarded the Certificate of Achievement for Excellence in Financial
Reporting from the Government Finance Officers Association for thirty-six consecutive
Schedule of Events:
2:30 p.m. - Children’s holiday movie @ Gorton Community Center
3:00 p.m. - Live Ice Sculpting Performance by Art Below Zero
4:00 p.m. - Meet Santa Claus in Market Square
4:30 p.m. - Caroling by Lake Forest High School Choristers
5:00 p.m. - LFDA holiday performance
5:15 p.m. - Lights set aglow
3:00-5:00 p.m. tentatively scheduled Passport of Retailers event (not confirmed)
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Monday, November 2, 2015 City Council Agenda
years. This year’s report will once again be submitted to GFOA for consideration of this
award.
The Audit Committee met four times in 2015 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, 2015.
4. OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA
ITEMS
5. ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approval of the October 19, 2015 City Council Meeting Minutes
A copy of the minutes begins on page 203.
2. Check Register for Period September 26-October 23, 2015
Fund Invoice Payroll Total
General 560,051 1,125,348 1,685,399
Water & Sewer 60,122 111,878 172,000
Parks & Recreation 174,905 284,953 459,858
Capital Improvements 209,788 0 209,788
Motor Fuel Tax 0 0 0
Cemetery 15,080 19,739 34,818
Senior Resources 7,811 18,926 26,737
Deerpath Golf Course 10,323 501 10,824
Fleet 32,426 38,365 70,790
Debt Funds 1,250 0 1,250
Housing Trust 0 0 0
Park & Public Land 2,530 0 2,530
All other Funds 943,113 141,656 1,084,769
$2,017,397 $1,741,366 $3,758,764
3. Second Reading and Final Approval of recommended changes to Chapter
11 of the City Code relating to Administrative Hearing.
STAFF CONTACT: Craig Lepkowski, Police Commander (847-810-3807)
PURPOSE AND ACTION REQUESTED: Staff is requesting second reading/final approval of an
amendment to the City Code pertaining to Administrative Hearings.
On January 20, 2015, City Council granted final approval of an Ordinance adopting an
updated City Code. As a follow up, City Staff and the City Attorney have begun to
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Monday, November 2, 2015 City Council Agenda
review certain provisions of the code to determine whether changes are required to
reflect changes in practices or policies of the City.
As part of that review, the City Manager, Executive Staff, the City Council Liaison, and the
City Attorney have reviewed the City Code provisions relating to Administrative Hearings.
BACKGROUND: The proposed amendment will correct grammatical errors, references to
outdated recording systems, and allows for the inclusion of bicycle and smoking code
violations.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
City Manager, City Attorney,
Staff 9/9/2015 Recommendation for the inclusion of
bicycle and smoking code violations
City Council 10/19/2015 Approval of first reading
A copy of the proposed amendment to the City Code relating to the Administrative
Hearing is included in the Council packet beginning on page 210.
COUNCIL ACTION: Second Reading and Final Approval of recommended changes to
Chapter 11 of the City Code relating to Administrative Hearing.
4. Consideration of Ordinances Approving Recommendations from the
Building Review Board. (First Reading and if Desired by the City Council,
Final Approval)
STAFF CONTACT: Catherine Czerniak,
Director of Community Development (810-3504)
The following recommendations from the Building Review Board are presented to the City
Council for consideration as part of the Omnibus Agenda.
101 E. Louis Avenue - The Building Review Board recommended approval of revisions to the
previously approved plans. There was no public testimony on this petition. (Board vote: 5-0,
approved)
598 Rockefeller Road - The Building Review Board recommended approval of an addition and
alterations to the existing house. There was no public testimony on this petition. (Board vote:
5-0, approved)
Ordinances approving the petitions as recommended by the Building Review Board, with key
exhibits attached, are included in the Council packet beginning on page 213. The
Ordinances, complete with all exhibits, are available for review in the Community
Development Department.
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Monday, November 2, 2015 City Council Agenda
COUNCIL ACTION: If determined to be appropriate by the City Council, waive first
reading and grant final approval of the Ordinances approving the petitions in
accordance with the Building Review Board’s recommendation.
5. Proclamation of Celebration of the Arts & Culture Month in Lake Forest.
A copy of the Proclamation can be found on page 232.
COUNCIL ACTION: Approve the Five (5) Omnibus items as presented.
6. ORDINANCES
7. ORDINANCES AFFECTING CODE AMENDMENTS
1. Discussion and Direction from City Council on Vehicles for Hire
PRESENTED BY: Robert Kiely, City Manager (810.3675)
PURPOSE AND ACTION REQUESTED: In reviewing Chapter 118 of the City Code, City Staff
and the City Attorney questioned the need to continue to regulate Vehicles for
Hire (taxis) in the community. With the growth of Uber, Lyft and other services it seemed to
make sense to revisit the issue with the City Council prior to drafting any revised
language.
Included in the packet starting on page 233 is background information on the topic
along with a survey of what other communities are doing in regulating vehicles for hire.
8. NEW BUSINESS
1. Approval of Contracts Necessary to Complete the Stage II (Exterior)
Improvements for the East Train Station Improvement Project with 80% of the
Costs to be Reimbursed through a Federal Grant
STAFF CONTACT: Mike Strong, Assistant to the City Manager (810-3680)
PURPOSE AND ACTIONS REQUESTED: Staff is requesting approval of contract amounts to
engage the professional services of Gewalt-Hamilton Associates for construction
engineering and MAG Construction to complete the restoration of the exterior windows,
wood, stucco, paint, and masonry elements of the east side train station. Illinois
Transportation Enhancement Program (“ITEP”) grant funds were awarded to the City of
Lake Forest for the East Train Station Improvement project for consultant engineering and
construction.
Staff hereby requests the following action by City Council:
1. Approval of a contract with Gewalt-Hamilton Associates to complete the stage II
(exterior) construction engineering (Phase III) for the East Train Station
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Monday, November 2, 2015 City Council Agenda
Improvement Project in an amount not to exceed $116,290, with 80% of the costs
to be reimbursed through a federal grant.
2. Approval of a contract with MAG Construction to complete the stage II (exterior)
improvements for the East Train Station Improvement Project in an amount not to
exceed $1,394,329, with 80% of the costs to be reimbursed through a federal grant.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
City Council April 24, 2008 Reviewed and Approved
Resolution supporting Project
Committee of the Whole March 1, 2010 Historical Report Presented
by Gunny Harboe
Finance Committee May 5, 2010 Approval of Capital
Improvement Plan for Project
City Council June 6, 2011 Approval of Agreement for
Phase 1 Granted
City Council June 20, 2011 Approval of a Contract with
Gunny Harboe to complete
Architectural Design
City Council May 7, 2012 Reviewed and Approved
Resolution supporting ITEP
Grant #2
Property & Public Lands
Committee
August 31, 2015 Reviewed
Public Works Committee September 21, 2015 Reviewed
Public Works Committee October 5, 2015 Review & Approval to
Proceed
BACKGROUND/DISCUSSION: The Central Business District train station, often viewed as the
fourth side of Market Square, is a historic icon of the community and serves as the
gateway and central transportation hub for hundreds of daily commuters and visitors to
Lake Forest. The City originally leased the station from Union Pacific railroad/METRA since
the late 1970s in order to preserve the structure from demolition. Renovation of the
station completed at that time is now nearly 40 years old and major renovation is needed
in order to protect it from further deterioration.
Since 2005, the City has been working to secure funding that would allow for the
restoration and renovation of the Central Business District train station. In 2010 and 2012,
the City received Illinois Transportation Enhancement Program (“ITEP”) grants totaling
over $2.07 million in grant funding for this project. In addition to these funds, the City and
Metra have contributed a combined total of roughly $617,000 to the project.
Due to the costs associated with the renovation, the City opted to separate out the
phases of renovation work into three distinct stages, contingent upon funding availability:
• Stage 1 – Restore the roof consistent with the original design of the train station, to
include slate, restoration of dormers, and hipped roof elements, and removal of
non-architecturally significant features. (Completed in 2012)
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Monday, November 2, 2015 City Council Agenda
• Stage 2 – Restoration and repair of the exterior wood and stucco, and tuck-
pointing. (In Process – Construction Bids Received – Anticipated completion in
Summer 2016)
• Stage 3 – Interior renovation including bathroom renovations, flooring, fire
protection, retail space renovation, and achieving ADA compliance.
(In Process – Phase II Architectural Design in progress – Anticipated completion
winter 2015/Q1 2016)
The remaining stages to be completed include Stage 2 (exterior) and Stage 3 (interior)
improvements. A timeline for the remaining stages of the project can be found on page
238.
On June 15, 2015, City Council approved the expenditure of ITEP funds to engage
Gewalt-Hamilton Associates to undertake the phase III construction engineering for the
exterior work of the project. Gewalt-Hamilton Associates engaged Gunny Harboe to
oversee the contractor who is awarded the construction for the project. While this
resolution authorized the City to allow for an agreement to be filed by Public Works, City
Council action is required to authorize expenditures for these professional services.
In September 2015, pursuant to the IDOT bidding process, the City issued a Request for
Bids (“RFB”) for construction services related to the exterior improvements. The City
published the notice in IDOT’s bulleting, and published it online. Additionally, the City
sent invitations to eleven (11) contractors. The City held a pre-bid meeting that was
attended by four (4) contractors. On October 8, 2015, The City held a public bid opening
and received two qualified (2) bid responses for the project:
Total of Bid
MAG Construction $1,394,328.15
Renaissance Restoration $1,630,267.34
BUDGET/FISCAL IMPACT: The ITEP grant program is an 80/20 reimbursable grant. The City
will pay the expenditures and receive reimbursement of 80% of the engineering and
construction costs. If approved, the construction services fee to hire MAG Construction
will be a maximum fee of $1,394,329 to complete the stage 2 construction. This amount
includes a
Below is an estimated summary of the Project budget:
Funding Source Account Number
Amount
Budgeted
Amount
Requested
Budgeted?
Y/N
FY16 – Capital Fund 311-0060-419-7717 $1,260,000 $400,000 Yes
FY17 – Capital Fund 311-0060-419-7717 N/A $1,250,619 Yes
MAG Construction has been commissioned work by the City in the past, with good
quality work that and was completed on time and on budget. Additionally, references
provided by MAG Construction gave favorable responses for similar scopes of work
completed in other communities. To this end, City staff is recommending that MAG
Construction be awarded this contract.
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Monday, November 2, 2015 City Council Agenda
It is anticipated that the construction will be completed in FY2017. The FY2017 budget will
include the remaining funds necessary, along with a 10% contingency, to complete the
stage II (exterior) portion of the project.
COUNCIL ACTIONS: Staff recommends the following action:
1. Approval of a contract with Gewalt-Hamilton Associates to complete the stage II
(exterior) construction engineering (Phase III) for the East Train Station
Improvement Project in an amount not to exceed $116,290, with 80% of the costs
to be reimbursed through a federal grant.
2. Approval of a contract with MAG Construction to complete the stage II (exterior)
improvements for the East Train Station Improvement Project in an amount not to
exceed $1,394,329, with 80% of the costs to be reimbursed through a federal grant.
2. Discussion on City’s Special Event Policy
PRESENTED BY: Michael Strong, Assistant to the City Manager (847-810-3680)
PURPOSE AND ACTION REQUESTED: At the August 3, 2015, City Council meeting, City staff
presented a review of special event permit applications that were processed in the last
calendar year. The purposes of this review were to better understand the volume of
special events that take place within the City each year; and to evaluate their impact on
City operations. At the conclusion of the presentation, City staff indicated that a more
thorough review of the policy would be conducted and recommendations on changes
to the policy would be presented to City Council at a future meeting. In October, City
staff met to discuss the current policy, with the aim of improving the consistency in how
applications are reviewed processed internally.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
City Council August 3, 2015 Reviewed
BACKGROUND/DISCUSSION: Currently, there are various processes established by the
City for regulating special events, park facility rentals, and other temporary
events/activities in Lake Forest. Such processes may include administrative use permits,
filming and photography permits, park reservation permits, special event permits, or block
party permits. Recently, City staff from various departments met to evaluate the City’s
special event policy to discuss some of the challenges that were presented to City
Council on August 3, 2015.
During the review, City staff found that current operations often deviate from the policy
due to several factors. First, the timeliness of applications, completeness of information
provided, and volume of events that take place during certain times of the year have
made it difficult for staff to comply with the provisions of the policy. Second, the current
policy lacks clarity and completeness in its provisions (e.g. classification of events,
application process, submittal requirements). It does not include provisions or remedies
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Monday, November 2, 2015 City Council Agenda
for staff for performing a permit review, or identifying the standards for which a permit will
be reviewed. Third, the policy does not adequately identify events that are exempt from
the policy. Last, the policy does not provide for an equitable assessment of special City
services or fees associated with said services.
In addition to these issues, City staff also contemplated how proposed special events that
take place in Market Square or Forest Park will be processed. Among the concerns
associated with the use of these facilities, included over usage, impact on
grounds/facilities, and impact on the character of their respective communities.
As pres ented in the attachment found on page 239, a draft special event policy has
been developed to provide for rules governing the issuance of permits for Special Events
occurring in the City. The draft document provides a more thorough elaboration of the
submittal requirements, conditions of permit, fees, and other items relevant to the
process. Its intent is to ensure consistency in review and application of reasonable and
consistent criteria for the approval of permits to allow Special Events as long as those
activities are consistent with the public health and safety and the protection of property
within the City. Among these provisions, include the following:
• Enacts cash deposits for events, based on their projected scope or location
• Requires an applicant to submit ninety (90) days prior to the proposed special
event a formal application and information for City to fairly and reasonably review
• Exempts the following activities from the policy:
o Governmental agency activities, educational institution activities, day care
facility events, private special events without liquor, residential
neighborhood block parties, commercial filming requests, funeral
processions, special events authorized by a special use permit, or city
sponsored events
• Establishes standards for issuance of permit and general conditions for each
permit
• Identifies the insurance and indemnification requirements for special events that
take place in The City
• Provides for an approval process for instances which multiple applications are
received for the same time and place
• Establishes a maximum number of special event permits that can be issued in a
calendar year
• Defines the number of days, in length, a special event permit can be issued
• Clarifies the permit application process, based on the classification of the event or
its location in the City, and approvals necessary for a permit to be issued under
each circumstance
• Formally assesses fees, per the annual fee ordinance, for various special City
Services that may be required for each event
• Provides findings of approval, denial, and appeal provisions on decisions by City
Staff
It is City staff’s intent to continue to review the provisions in the draft policy and solicit
feedback from various stakeholders in the Community, including representatives from
various organizations that host events throughout the year.
BUDGET/FISCAL IMPACT: None.
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Monday, November 2, 2015 City Council Agenda
COUNCIL ACTION: For discussion only.
9. ADDITIONAL ITEMS FOR COUNCIL DISCUSSION
10. ADJOURNMENT
Office of the City Manager October 28, 2015
The City of Lake Forest is subject to the requirements of the Americans with Disabilities
Act of 1990. Individuals with disabilities who plan to attend this meeting and who require
certain accommodations in order to allow them to observe and/or participate in this
meeting, or who have questions regarding the accessibility of the meeting or the
facilities, are required to contact City Manager Robert R. Kiely, Jr., at (847) 234-2600
promptly to allow the City to make reasonable accommodations for those persons.
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Comprehensive Annual
Financial Report
City of Lake Forest, Illinois
For the Year Ended April 30, 2015
11
CITY OF LAKE FOREST, ILLINOIS
Comprehensive Annual Financial Report
Year Ended April 30, 2015
(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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i
CITY OF LAKE FOREST, ILLINOIS
Comprehensive Annual Financial Report
Year Ended April 30, 2015
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 70
Parks and Recreation Fund B-2 71
Schedules of Funding Progress B-3 72
Schedules of Employer Contributions B-4 73
Other Post-Employment Benefits B-5 74
Schedule of Changes in Net Pension Liability, Total Pension Liability and
Related Ratios and Investment Returns
Police Pension Plan B-6 75
Firefighters’ Pension Plan B-7 76
Schedule of Contributions B-8 77
Notes to Required Supplementary Information 79
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CITY OF LAKE FOREST, ILLINOIS
Comprehensive Annual Financial Report
Year Ended April 30, 2015
Table of Contents, Continued
Exhibit Page
Financial Section, Continued:
Other Supplementary Information:
Financial Schedules:
Other Governmental Funds:
Nonmajor Combining Balance Sheet C-1 80
Nonmajor Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances C-2 83
Schedules of Revenues, Expenditures, and Changes in Fund Balance -
Budget and Actual:
Asset Forfeiture Fund C-3 86
Foreign Fire Insurance Tax Fund C-4 87
Emergency Telephone Fund C-5 88
Parks and Public Land Fund C-6 89
Motor Fuel Tax Fund C-7 90
General Cemetery Fund C-8 91
Senior Resources Commission Fund C-9 92
Housing Trust Fund C-10 93
Debt Service Fund C-11 94
Capital Improvements Fund C-12 95
Route 60 Bridge Improvements Fund C-13 96
Route 60 Intersection Improvements Fund C-14 97
Laurel/Western Redevelopment TIF Fund C-15 98
Major Enterprise Fund:
Schedule of Revenues, Expenses, and Nonoperating Revenues
(Expenses) - Budget and Actual (Budgetary Basis)
Waterworks and Sewerage Fund D-1 99
Nonmajor Enterprise Fund:
Schedule of Revenues, Expenses, and Nonoperating Revenues
(Expenses) – Budget and Actual (Budgetary Basis) -
Deerpath Golf Course Fund E-1 100
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CITY OF LAKE FOREST, ILLINOIS
Comprehensive Annual Financial Report
Year Ended April 30, 2015
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-1 101
Combining Statement of Revenues, Expenses, and Changes in Fund
Net Position F-2 102
Combining Statement of Cash Flows F-3 103
Schedule of Revenues, Expenses and Nonoperating Revenues –
Budget and Actual (Budgetary Basis)
Fleet Fund F-4 104
Self Insurance Fund F-5 105
Liability Insurance Fund F-6 106
Fiduciary Funds
Pension Trust Funds:
Combining Statement of Fiduciary Net Position G-1 107
Combining Statement of Changes in Fiduciary Net Position G-2 108
Statement of Changes in Assets and Liabilities – Agency Fund –
Special Assessment Fund G-3 109
Schedule of Changes in Fiduciary Net Position – Budget and Actual:
Police Pension Fund G-4 110
Firefighters’ Pension Fund G-5 111
Discretely Presented Component Unit – Lake Forest Library:
Statement of Net Position and General Fund Balance Sheet H-1 112
Statement of Activities and General Fund Statement of Revenues,
Expenditures, and Changes in Fund Balance H-2 113
Debt Service Schedules:
Summary of Debt Service Requirements to Maturity I-1 114
Debt Service Requirements to Maturity – General Obligation Bonds I-2 115
Special Service Area 25 Special Tax Bonds – 2003 Series I-3 119
Special Service Area 26 Special Tax Bonds – 2003 Series I-4 120
Special Service Area 29 Special Tax Bonds – 2004 Series I-5 121
General Obligation Bonds – 2008 Series I-6 122
General Obligation Bonds – 2009 Series I-7 123
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iv
CITY OF LAKE FOREST, ILLINOIS
Comprehensive Annual Financial Report
Year Ended April 30, 2015
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-8 124
General Obligation Bonds – 2010 Series C I-9 125
General Obligation Bonds – 2011 Series A I-10 126
General Obligation Bonds – 2011 Series B I-11 127
General Obligation Bonds – Series 2013 I-12 128
Combining Balance Sheet – Debt Service Fund I-13 129
Combining Schedule of Revenues, Expenditures, and Changes in
Fund Balance – Debt Service Fund I-14 131
Statistical Section (Unaudited): Table Page
Net Position by Component – Last Ten Fiscal Years 1 133
Changes in Net Position – Last Ten Fiscal Years 2 135
Fund Balances of Governmental Funds – Last Ten Fiscal Years 3 139
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal
Years 4 140
Assessed Value and Actual Value of Taxable Property – Last Ten Levy
Years 5 142
Property Tax Rates – Direct and Overlapping Governments – Last Ten
Levy Years 6 143
Principal Property Taxpayers – Current Year and Ten Years Ago 7 144
Property Tax Levies and Collections – Last Ten Levy Years 8 145
Tax Extensions for City Funds – Last Ten Levy Years 9 146
Sales Tax Base and Number of Principal Payers – Taxable Sales by
Category – .5% Sales Tax – Last Ten Calendar Years 10 147
Sales Tax Base and Number of Principal Payers – Taxable Sales by
Category – 1% Sales Tax – Last Ten Calendar Years 11 148
Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years 12 149
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years 13 150
Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years 14 151
Direct and Overlapping Governmental Activities Debt 15 152
Legal Debt Margin Information – Last Ten Fiscal Years 16 153
Pledged Revenue Coverage – Last Ten Fiscal Years 17 154
Demographic and Economic Information – Last Ten Fiscal Years 18 155
Principal Employers – Current Year and Nine Years Ago 19 156
Full-Time Equivalent Employees – Last Ten Fiscal Years 20 157
Operating Indicators – Last Ten Fiscal Years 21 158
Capital Asset Statistics – Last Ten Fiscal Years 22 161
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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, 2009-2013 estimates, the U.S. Census
Bureau reported the City had a median household income and median home value 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 and fiscal policy, 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.
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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
appropriated amount 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, considered major
funds, this comparison is presented beginning on page 70 as required supplementary information. For the
Capital Improvements Fund (major fund) and 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 80.
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.
• Unemployment levels in Lake Forest are well below the levels for Lake County and the State of
Illinois. For calendar year 2014, the City’s annual average unemployment rate was estimated to be
5.4%, compared to 6.5% for Lake County and 7.1% 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 2015, the index was 101.5, up
from 91 in July, and up significantly compared to 92.4 in August of 2014. 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 General
Fund operating budget, it has been necessary to
achieve cost savings through reduced personnel. In
fiscal years (FY) 2009-2016, the City has reduced
budgeted full time employees by 41 positions, returning
the City’s total employee count below FY1992 levels.
FY2016 budgeted full-time positions were reduced by
10 positions alone primarily by outsourcing dispatch
operations.
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).
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.
In September 2014, the City transitioned to a consolidated dispatch operation with the Villages of
Glenview and Lake Bluff, as well as the City of Highland Park. The consolidation of dispatch operations
is projected to save the City more than $350,000 per year while improving the infrastructure providing this
vital service to its residents.
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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 FY2015 budget estimates. However, these revenues have
yet to reach levels prior to the 2008 recession. Effective May 1, 2014, the City implemented a new
sanitation fee that generates $600,000 per year. This revenue is currently deposited to the Capital
Improvements Fund.
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 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
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, the BMW Championship returned to Lake
Forest in September 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.
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 2015, the City Council adopted revisions to the Fiscal Policy effective for FY2016 that
included an increase in the fund balance target of the General Fund to address potential reductions in
State funding, 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 voter 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.
FY2015 real estate transfer tax revenue totaled $1.27 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.
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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.
Five-year fund balance forecasts are prepared for major funds of the City each year as part of the budget
development process to assist the City in identifying budget challenges on the horizon and ensure that a
proactive approach is taken to addressing these challenges.
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
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, 2015, the most recent actuarial valuation date, the funded ratio for the Police Pension Plan is
53.4% and for the Firefighters’ Pension Plan is 73.4%.
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,
2014, the funded ratio for IMRF is 74.7%, 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. 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, including GASB 67 disclosures, and other
postemployment benefits may be found in Notes 9 and 10 of the financial statements, as well as in the
Required Supplementary Information.
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 FY2015, the most significant initiatives
were as follows:
• In January 2015, the City Council approved ordinances adopting a Tax Increment Financing (TIF)
District on a 10-acre site at the north end of the Commercial Business District. This is the former
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site of the City’s municipal services center and has long been a focus of redevelopment for the
City. The developer is progressing through the City’s planning process and has proposed
approximately 170 residential units with a mix of single family, luxury condominium and high
quality rentals.
• Significant improvements are being made elsewhere in the City’s Commercial Business District,
including a $5 million investment in Market Square by its new owner, extensive restoration of
historic Deer Path Inn by its new owner, and grant funded restoration of the City’s historic train
station by the City.
• Construction of a new $180 million replacement hospital on the campus of the existing
Northwestern Lake Forest Hospital has begun. City and Hospital representatives have worked
closely on the planning of this project. The new hospital is scheduled to open in September
2017.
• The Public Works Committee of the City Council are considering various options for a major
improvement to the City’s water treatment plant and financing of the proposed improvement.
• Capital expenditures in Fiscal Year 2015 included: street improvements ($1.7 million), Emerald
Ash Borer tree removal and replacement ($520,000), E-911 equipment replacement and
enhancements ($402,255), and Water/Sanitary Sewer capital improvements ($2.8 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, 2014. This was the thirty-sixth (36th) 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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CITY OF LAKE FOREST, ILLINOIS
List of Principal Officials
Year Ended April 30, 2015
LEGISLATIVE
City Council
Donald P. Schoenheider, Mayor
Prue Beidler Catherine A. Waldeck
George A. Pandaleon David Moore
Stanford Tack Jack Reisenberg
Michael R. Adelman Michelle Moreno
AUDIT COMMITTEE
Lucinda Baier, Chairman
Amy Krebs
Andrew Logan
Don O’Callaghan
Dean Stieber
Donald P. Schoenheider, Mayor (ex-officio)
George Pandaleon, Finance Committee Chairman (ex-officio)
EXECUTIVE
Robert R. Kiely, Jr., City Manager
DEPARTMENT OF FINANCE
Elizabeth Holleb, Director of Finance
Diane Hall, Assistant Finance Director
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Mayor and City
Council
CROYA
COMMUNITY
DEVELOPMENT FINANCE/IT FIRE HUMAN RESOURCES PARKS/RECREATION POLICE PUBLIC WORKS SENIOR CENTER
Voters and Citizens of The City of Lake Forest
Appointed Boards/
Commissions/
Committees
Office of the City
Manager
Audit Committee
Board of Fire and Police Commissioners
Board of Trustees-Police Pension Fund
Board of Trustees-Firefighters' Pension Fund
Building Review Board
Cemetery Commission
Construction Codes Commission
CROYA Board
Historic Preservation Commission
Housing Trust Fund Board
Legal Committee
Library Board
Parks and Recreation Board
Plan Commission
Senior Resources Commission
Zoning Board of Appeals
26
FINANCIAL SECTION
27
Independent Auditor’s Report
28
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, 2015, 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, 2015, 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.
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2
Emphasis of Matter
As discussed in Note 9 to the financial statements, during the year ended April 30, 2015 the City’s Police
Pension Plan and Firefighters’ Pension Plan implemented the provisions of GASB Statement No. 67,
Financial Reporting for Pension Plans – An Amendment of GASB Statement No. 25. 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 70 - 71), and pension
and OPEB information (pages 72 - 74) 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 80 - 132), 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 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 15, 2015
30
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2015
3
The City of Lake Forest’s (the City) management’s discussion and analysis is designed to (1) assist the
reader in focusing on significant financial issues, (2) provide an overview of the City’s financial activity,
(3) identify changes in the City’s financial position (its ability to address the next and subsequent year’s
challenges), (4) identify any material deviations from the financial plan (the approved budget), and (5) identify
individual fund issues or concerns.
Since the Management’s Discussion and Analysis (MD&A) is designed to focus on the current year’s
activities, resulting changes and currently known facts, please read it in conjunction with the Transmittal Letter
(beginning on page v) and the City’s financial statements (beginning on page 16).
Financial Highlights
• The City’s net position decreased by $1.62 million during the fiscal year ending April 30, 2015 (FY15).
The governmental net position decreased by $1.28 million and the business-type activities net position
decreased by $.34 million.
• The governmental activities revenue increased by $.5 million (1.0%) due to a new sanitation fee,
increased property tax revenue and declines in real estate transfer tax and one-time revenue. The
expenses increased by $2.0 million (4%) due primarily to increased capital expenses in streets and
public safety. The transfers increased by $.1 million.
• The business-type activities revenue increased by $.5 million and expenses increased by $.9 million
due to a one-time contribution for a water main project and purchase of additional membranes for the
water treatment plant. The transfers increased by $.1 million.
• The total cost of all City programs increased from $57.8 million in FY14 to $60.7 million in FY15 – and
increase of 5.0% - largely attributable to increased capital expenses not meeting the threshold for
capitalization.
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, 2015
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 Statements allow 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.
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CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2015
5 (Continued)
GOVERNMENT-WIDE STATEMENT
Statement of Net Position
The City’s combined net position decreased by $1.62 million for FY15 – from $270.72 million to $269.1
million. The analysis following will look at net position and net expenses of governmental and business-type
activities separately. The total net position for the governmental activities decreased by $1.28 million – from
$224.82 million to $223.54 million. The business-type activities net position decreased by $.34 million – from
$45.9 million to $45.56 million. Table 1 reflects the condensed Statement of Net Position compared to FY14.
Table 2 will focus on the changes in net position of the governmental and business-type activities.
2015 2014 2015 2014 2015 2014
Current and Other Assets $76.2 $73.5 $10.2 $10.8 $86.4 $84.3
Capital Assets 215.2 220.0 53.6 54.8 268.8 274.8
Total Assets 291.4 293.5 63.8 65.6 355.2 359.1
Deferred Outflows 0.1 0.1 0.6 0.8 0.7 0.9
Long-Term Liabilities 36.3 38.0 17.8 19.7 54.1 57.7
Other Liabilities 6.9 6.6 1.1 0.8 8.0 7.4
Total Liabilities 43.2 44.6 18.9 20.5 62.1 65.1
Deferred Inflows 24.7 24.2 0.0 0.0 24.7 24.2
Net Position:
Net Investment in
Capital Assets 181.1 184.3 36.6 36.2 217.7 220.5
Restricted 15.7 16.8 0.0 0.0 15.7 16.8
Unrestricted 26.7 23.7 9.0 9.7 35.7 33.4
Total Net Position $223.5 $224.8 $45.6 $45.9 $269.1 $270.7
Activities Activities Government
Table 1
Governmental Business-Type Total Primary
Statement of Net Position
As of April 30 2015 and 2014
(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.
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CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2015
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 $1.62 million decrease in combined net position (which is the City’s bottom line) was the result of
the governmental activities net position decreasing by $1.28 million and the business-type activities net
position decreasing by $.34 million.
The governmental activities total assets decreased by $2.1 million (.7%) and the governmental activities total
liabilities decreased by $1.4 million (3.1%). 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 $.5 million. The change in total
assets is due primarily to a $4.8 million reduction in capital assets that occurred as a result of depreciation on
capital assets significantly exceeding additions. This was partially offset by an increase in current and other
assets due in large part to an increase in cash and investments. The decrease in total liabilities reflects the
scheduled retirement of general obligation 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 $3 million.
The net position of business-type activities decreased by $.34 million, from $45.90 million to $45.56 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 $1.2 million.
Long-term liabilities decreased by $1.9 million due to scheduled maturities of debt obligations. The
unrestricted net position decreased from $9.7 million to $9.0 million. The majority of the unrestricted net
position can be used by the City to finance water and sanitary 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 $6.6 million per year and interest expense on bonds is
$.4 million.
Changes in Net Position
The City’s combined change in net position was a decrease of $1.62 million from FY14. The City’s total
revenues increased by $1.0 million made up of increases and decreases in a number of categories. Tax
revenues distributed through the State of Illinois have been reclassified to Intergovernmental Revenue for
FY15. The City’s cost of all programs increased by $2.9 million, largely attributable to increased expenses in
streets, public safety and water.
The chart on the following page compares the revenue and expenses for the current and previous fiscal year.
34
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2015
7 (Continued)
2015 2014 2015 2014 2015 2014
REVENUE
Program Revenue
Charges for Services $11.8 $10.8 $9.4 $8.9 $21.2 $19.7
Grants and Contributions
Operating 1.3 1.1 1.3 1.1
Capital 0.5 0.8 0.5 0.8
General Revenue
Property Taxes 24.5 23.7 24.5 23.7
Other Taxes 4.6 12.1 4.6 12.1
Intergovernmental - Taxes 6.4 6.4
Interest Revenue 0.5 0.5
Other 0.1 0.7 0.1 0.7
Total Revenue 49.7 49.2 9.4 8.9 59.1 58.1
EXPENSES
Governmental Activities
General Government 12.6 12.3 12.6 12.3
Highways and Streets 8.8 7.8 8.8 7.8
Sanitation 2.5 2.6 2.5 2.6
Culture and Recreation 10.2 10.4 10.2 10.4
Public Safety 15.3 14.4 15.3 14.4
Interest 1.4 1.3 1.4 1.3
Business-Type Activities
Water and Sewer 8.3 7.5 8.3 7.5
Golf 1.6 1.5 1.6 1.5
Total Expenses 50.8 48.8 9.9 9.0 60.7 57.8
Excess before Transfers (1.1) 0.4 (0.5) (0.1) (1.6) 0.3
Transfers In (out)(0.2) (0.1) 0.2 0.1 0.0 0.0
Change in Net Position (1.3) 0.3 (0.3) 0.0 (1.6) 0.3
Net Position - Beginning 224.8 224.5 45.9 45.9 270.7 270.4
Net Position - Ending $223.5 $224.8 $45.6 $45.9 $269.1 $270.7
Table 2
Governmental Business-Type Total Primary
Changes in Net Position
Government
For the Fiscal Years Ended April 30, 2015 and 2014
(in millions)
Activities Activities
35
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2015
8 (Continued)
36
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2015
9
37
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2015
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, 2015, revenues from governmental activities totaled $49.7 million,
increasing $500,000 from $49.2 million compared to FY14. The primary changes occurred in Charges for
Services (up $1m largely due to a new sanitation fee effective 5/1/14), Property Taxes (up $.8m),
Other/Intergovernmental Taxes (down $.5m primarily in real estate transfer tax) and Other (down $.6
million due to one-time revenue received in FY14 for sale of property). Property tax revenue continues to
be the City’s single largest revenue source, contributing $24.5 million (49%) 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 $35.5 million and represent 71% of the total governmental activities
revenue.
38
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2015
11
The real estate transfer tax became effective July 5, 2006 with a 58% voter approval via referendum. The
tax is imposed upon buyers of any residential or commercial real estate at a rate of $4.00 per $1,000 of
value. The revenue is used strictly to improve the City’s infrastructure.
The City’s 2014 equalized assessed valuation was nearly flat compared to the prior year and totaled
$2,250,468,636. Although the City became a home rule municipality in November 2004, the City has
historically self-imposed the Illinois Property Tax Extension Limitation Laws (PTELL), otherwise known as
the tax cap. The increase of approximately 3.00% over FY14 in property taxes was generated as a result
of the 1.70% tax cap, new construction and an increase in bond debt service obligations.
Investment income decreased by $0.1 million ($0.7 million to $0.6 million). The City’s strategy for
investing did not change.
Expenses
For the fiscal year ended April 30, 2015, expenses for governmental activities totaled $50.8 million, an
increase of $2.0 million (4.1%). This increase is due in part to increasing personnel costs, which
represent 70% of the City’s operating budget. 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 FY15 expenses included funding for the City’s performance based employee
compensation package plus a 2.5% general salary adjustment.
The City’s highways and streets expense category increased by $1.0 million (12.8%) and public safety
costs increased by $.9 million (6.25%) primarily due to increased capital expenses.
Business-type Activities
Revenue
Total revenue for the business-type activities increased by $.5 million due to a one-time contribution by
the Army for a water main extension.
Expenses
The City’s business-type activity expenses increased by $.9 million or 10% due primarily to a purchase of
additional water membrane modules for the water treatment plant.
39
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2015
12
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds
At April 30, 2015, the governmental funds (as presented on the balance sheet on page 18) reported a
combined fund balance of $36.1 million which is a 2.4% increase from the beginning of the year
($35.2 million). Of the total fund balance of $36.1 million, $34.0 million is available for continuing City
services and capital projects. The unassigned fund balance of the General Fund at April 30, 2015 is
$17.9 million, which is a $2.4 million (16.6%) 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 16.5% from FY14
($17.6 million to $20.5 million). The General Fund revenues increased by $.5 million (1.5%) and the
expenditures increased by $.9 million (3.2%) due to personnel cost increases and capital outlay. The
excess of revenues over expenditures (before transfers) for FY15 of $4.8 million was comparable to the
$5.2 million in FY14. The other financing sources (uses) decreased by $0.4 million from $(2.3) million to
$(1.9) million.
Primary revenue fluctuations between FY14 and FY15 were increases in property taxes ($.3m) and
licenses and permits ($.3m). Although the City became a home rule unit in November 2004, the City has
historically self-imposed the Illinois Property Tax Extension Limitation Law (PTELL), otherwise known as
the tax cap. The 2013 levy extension (FY15 revenue) allowed for a 1.7% CPI factor as well as new
equalized assessed valuation growth.
General Fund expenditures increased overall due to personnel cost increases. General government
increased 1.3%, highways and streets increased 3.4%, sanitation increased 1.0% and public safety costs
increased 1.7%. In addition, General Fund capital outlay costs increased by nearly $.5 million over FY14.
Original Final
General Fund Budget Budget Actual
Revenues:
Taxes $20.2 $20.2 $20.3
Intergovernmental - Taxes $6.5 $6.5 $6.3
Other 6.2 6.2 6.9
Total 32.9 32.9 33.5
Expenditures and Transfers:
Expenditures 33.3 33.3 28.7
Transfers (Net)1.9 1.9 1.9
Total 35.2 35.2 30.6
Change in Fund Balance ($2.3)($2.3)$2.9
General Fund Budgetary Highlights
(in millions)
Table 3
Actual General Fund revenues were higher than the original budgeted revenues by $.6 million during
FY15. This increase is mainly due to building permit activity, income tax distributions and cable franchise
fees exceeding budget projections by $.4, $.1 and $.1 million respectively. Actual General Fund
expenditures were lower than the original and final budget by $4.6 million as it is the City’s policy to add
10%, which is $3.2 million, of contingency funding to the budget appropriation. The contingency amount
is only for emergency use and was not used in FY15. More information can be found on the schedule of
revenues, expenditures and changes in fund balance – budget and actual on page 70.
40
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2015
13
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
$11,902, from $2.75 million to $2.76 million. The Parks and Recreation Fund revenues increased by
$50,000 (.6%), while expenditures increased by $250,000 (3%). The increase in expenditures was
primarily attributable to an increase in capital outlay. The excess of revenues over expenditures
decreased from $88,574 to $(108,567) attributable to the capital outlay costs.
The Capital Improvements Fund is reported as a Major Fund for FY15 and is used to account for
revenues used to fund City building and infrastructure projects. Fund balance of this fund decreased by
$.8 million to $3.3 million. Compared to FY14, revenue decreased by $.1 million due to declines in grant
and real estate transfer tax revenue offsetting the new sanitation fee revenue. Total expenditures
decreased by $1.2 million in the capital outlay category. Transfers to this fund decreased by $1.2 million
compared to FY14 and a planned bond issuance for FY15 was deferred to FY16.
CAPITAL ASSETS
2015 2014 2015 2014 2015 2014
Land and Improvements $45.3 $45.3 $0.5 $0.5 $45.8 $45.8
Infrastructure - Land 66.7 66.7 0.0 66.7 66.7
Construction in Progress 0.6 0.0 0.9 0.9 1.5 0.9
Infrastructure 59.7 62.6 0.0 59.7 62.6
Buildings 20.8 21.6 14.4 15.4 35.2 37.0
Improvements 18.4 19.6 22.7 22.2 41.1 41.8
Machinery and Equipment 3.7 4.2 1.7 1.9 5.4 6.1
Sanitary Sewers 0.0 0.0 13.4 14.0 13.4 14.0
Total $215.2 $220.0 $53.6 $54.9 $268.8 $274.9
Table 4
Governmental Business-Type Total Primary
Activities Activities Government
Capital Assets at Year End
Net of Depreciation
(in millions)
At the end of FY15, the City had a combined total of $268.8 million invested in a broad range of capital
assets. This amount represents a net decrease (including additions and deductions) of $6.1 million. The
net decrease is attributable to a $4.8 million decrease in governmental activities and a $1.3 million
decrease in the business-type activities.
The $4.8 million decrease in the governmental activities was primarily due to $6.2 million of depreciation
offset by $1.4 million of capital asset additions. The $1.3 million decrease in business-type activities was
primarily due to $2.7 million of depreciation offset by $1.4 million in asset additions.
41
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2015
14
The following reconciliation summarizes the changes in Capital Assets which are presented in detail on
pages 44-46 of the Notes.
Governmental Business-Type
Activities Activities Total
Beginning Balance $220.0 $54.9 $274.9
Additions
Depreciable 0.8 1.4 2.2
Non-Depreciable .
Construction in Progress 0.6 0.9 1.5
Retirements
Depreciable (0.3)(0.1)(0.4)
Non-Depreciable
Construction in Progress (0.9)(0.9)
Depreciation (6.2)(2.7)(8.9)
Retirements 0.3 0.1 0.4
Ending Balance $215.2 $53.6 $268.8
Table 5
Change in Capital Assets
(in millions)
Debt Outstanding
The City had $51.6 million of general obligation bonds outstanding at April 30, 2015. Of this amount
$28.2 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
$6,843 and $5,947 if self-supporting debt is excluded.
The City operated as a home rule community for FY15. The City was granted home rule status via a
referendum held on November 2, 2004. Under home rule authority, the City will not have a legal debt
limit. For more detailed information on long-term debt activity, see pages 47-49.
The City had no bond issues in FY15, but has issued $9.78 million in general obligation bonds in FY16.
42
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS
APRIL 30, 2015
15
Economic Factors
Unemployment levels in Lake Forest are well below the levels for Lake County and the State of Illinois.
For calendar year 2014, the City’s annual average unemployment rate was estimated to be 5.4%,
compared to 6.5% for Lake County and 7.1% 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.
43
BASIC FINANCIAL STATEMENTS
44
16
CITY OF LAKE FOREST, ILLINOIS Exhibit A-1
Statement of Net Position
April 30, 2015
Component
Primary Government unit
Governmental Business-type Lake Forest
Activities Activities Total Library
Assets
Cash and cash equivalents 37,671,531 $ 8,555,672 $ 46,227,203 $ 1,917,718 $
Investments 4,359,036 - 4,359,036 -
Property held for resale 380,000 - 380,000 -
Receivables (net):
Property taxes 24,670,331 - 24,670,331 3,821,301
Other taxes 406,832 - 406,832 6,989
Accounts 1,015,835 1,196,105 2,211,940 -
Loans 1,208,044 - 1,208,044 -
Other 1,404,950 97 1,405,047 -
Due from other governments 1,933,837 - 1,933,837 -
Internal balances (369,946) 369,946 - -
Inventories 397,273 83,326 480,599 -
Prepaids 643,472 10,988 654,460 28,654
Net pension asset 2,432,828 - 2,432,828 -
Capital assets:
Not being depreciated 112,681,944 1,413,955 114,095,899 219,000
Being depreciated, net 102,535,256 52,163,360 154,698,616 3,360,247
Total assets 291,371,223 63,793,449 355,164,672 9,353,909
Deferred Outflows of Resources
Deferred loss on refunding 98,303 642,901 741,204 -
Liabilities
Accounts payable 1,866,976 396,400 2,263,376 60,961
Accrued liabilities 1,803,648 91,673 1,895,321 61,282
Accrued interest payable 488,702 163,309 652,011 -
Retainage payable 25,838 - 25,838 -
Deposits 770,528 - 770,528 -
Unearned revenue - other 2,009,528 428,432 2,437,960 -
Long-term obligations:
Due within one year 1,718,218 1,882,000 3,600,218 30,538
Due in more than one year 34,574,042 15,915,238 50,489,280 217,915
Total liabilities 43,257,480 18,877,052 62,134,532 370,696
Deferred Inflows of Resources
Property tax levies intended to finance FY16 24,670,331 - 24,670,331 3,821,301
Net Position
Net investment in capital assets 181,056,601 36,617,378 217,673,979 3,553,709
Restricted for:
Culture and recreation 3,173,000 - 3,173,000 -
Highways and streets 319,264 - 319,264 -
Public safety 524,673 - 524,673 -
Cemetery purposes 4,935,384 - 4,935,384 -
Affordable housing 726,659 - 726,659 -
Capital projects 3,784,497 - 3,784,497 -
Debt service 1,316,900 - 1,316,900 -
Parking 957,420 - 957,420 -
Unrestricted 26,747,317 8,941,920 35,689,237 1,608,203
Total net position 223,541,715 $ 45,559,298 $ 269,101,013 $ 5,161,912 $
See accompanying notes to financial statements.
45
17
CITY OF LAKE FOREST, ILLINOIS Exhibit A-2
Statement of Activities
For the Year Ended April 30, 2015 Program Revenues Net (Expense) Revenue and Changes in Net Position
Operating Capital Primary Government Component Unit
Charges for Grants and Grants and Governmental Business-type Lake Forest
Expenses Services Contributions Contributions Activities Activities Total Library
Functions/Program
Primary government:
Governmental activities:
General government 12,604,331 $ 5,442,475 $ 158,178 $ 312,706 $ (6,690,972) $ -$ (6,690,972) $
Highways and streets 8,839,231 710,795 698,789 230,549 (7,199,098) - (7,199,098)
Sanitation 2,474,355 682,062 - - (1,792,293) - (1,792,293)
Culture and recreation 10,172,391 3,156,699 474,247 (75,000) (6,616,445) - (6,616,445)
Public safety 15,303,399 1,795,521 14,456 - (13,493,422) - (13,493,422)
Interest on long-term debt 1,357,552 - - - (1,357,552) - (1,357,552)
Total governmental activities 50,751,259 11,787,552 1,345,670 468,255 (37,149,782) - (37,149,782)
Business-type activities:
Waterworks and sewerage 8,353,825 8,034,469 - - - (319,356) (319,356)
Golf 1,642,121 1,414,217 - - - (227,904) (227,904)
Total business-type activities 9,995,946 9,448,686 - - - (547,260) (547,260)
Total primary government 60,747,205 $ 21,236,238 $ 1,345,670 $ 468,255 $ (37,149,782) (547,260) (37,697,042)
Component Unit
Lake Forest Library 3,763,291 $ 65,541 $ 190,487 $ -$ (3,507,263) $
General revenues and transfers:
General revenues
Taxes
Property 24,468,769 - 24,468,769 3,793,926
Home rule sales 653,984 - 653,984 -
Utility 2,589,941 - 2,589,941 -
Real estate transfer tax 1,224,610 - 1,224,610 -
Other 172,931 - 172,931 -
Intergovernmental revenues - unrestricted
Taxes
Sales 2,197,119 - 2,197,119 -
Income 2,386,567 - 2,386,567 -
Telecommunication 1,364,060 - 1,364,060 -
Replacement 142,763 - 142,763 34,833
Other taxes 218,931 - 218,931 -
Investment income 547,118 33,408 580,526 10,076
Other 73,613 1,621 75,234 -
Transfers (168,750) 168,750 - -
Total general revenues and transfers 35,871,656 203,779 36,075,435 3,838,835
Change in net position (1,278,126) (343,481) (1,621,607) 331,572
Net position – beginning of year 224,819,841 45,902,779 270,722,620 4,830,340
Net position – end of year 223,541,715 $ 45,559,298 $ 269,101,013 $ 5,161,912 $
See accompanying notes to financial statements.
46
18
CITY OF LAKE FOREST, ILLINOIS Exhibit A-3
Balance Sheet
Governmental Funds
April 30, 2015
Parks and Capital Nonmajor Total
General Recreation Improvements Governmental Governmental
Assets Fund Fund Fund Funds Funds
Cash and cash equivalents 19,453,778 $ 3,639,109 $ 3,025,893 $ 5,459,998 $ 31,578,778 $
Investments - - - 4,359,036 4,359,036
Property held for resale - - - 380,000 380,000
Receivables (net of allowance for
uncollectibles):
Property taxes 17,199,721 5,237,543 9,618 2,223,449 24,670,331
Other taxes 406,832 - - - 406,832
Accounts 455,125 58,205 502,505 - 1,015,835
Loans 1,208,044 - - - 1,208,044
Other 65,890 - - 212,755 278,645
Due from other governments 1,879,980 8,795 - 45,062 1,933,837
Advances to other funds 333,640 - - - 333,640
Due from other funds - - 1,016,561 - 1,016,561
Due from fiduciary funds - - - 155,185 155,185
Inventory 89,895 - - - 89,895
Prepaids 17,253 1,487 - 1,173 19,913
Total assets 41,110,158 $ 8,945,139 $ 4,554,577 $ 12,836,658 $ 67,446,532 $
Liabilities
Accounts payable 476,374 $ 205,899 $ 780,590 $ 45,594 $ 1,508,457 $
Accrued liabilities 696,960 142,210 - 12,978 852,148
Due to other funds - - - 1,016,561 1,016,561
Retainage payable - - 25,838 - 25,838
Deposits 732,578 3,950 22,000 12,000 770,528
Unearned revenue 1,411,646 589,258 8,624 - 2,009,528
Total liabilities 3,317,558 941,317 837,052 1,087,133 6,183,060
Deferred Inflows of Resources
Property tax levies intended to finance FY16 17,199,721 5,237,543 9,618 2,223,449 24,670,331
Unavailable grants and contributions - - 374,913 90,577 465,490
Other unavailable revenues 76,590 - - - 76,590
Total deferred inflows of resources 17,276,311 5,237,543 384,531 2,314,026 25,212,411
Fund Balances
Nonspendable 1,648,832 - - 381,173 2,030,005
Restricted 957,420 2,766,279 3,332,994 8,627,726 15,684,419
Assigned - - - 1,448,736 1,448,736
Unassigned 17,910,037 - - (1,022,136) 16,887,901
Total fund balances 20,516,289 2,766,279 3,332,994 9,435,499 36,051,061
Total liabilities, deferred inflows
of resources, and fund balances 41,110,158 $ 8,945,139 $ 4,554,577 $ 12,836,658 $ 67,446,532 $
See accompanying notes to financial statements.
47
19
Exhibit A-4
CITY OF LAKE FOREST, ILLINOIS
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
April 30, 2015
Total fund balances – governmental funds 36,051,061 $
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.98,303
Net pension assets recorded in governmental activities are not current financial
resources and therefore are not reported in the funds.2,432,828
Revenues in the Statement of Activities that do not provide current
financial resources are deferred inflows of resources in the funds.542,080
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 637,762
Infrastructure, net of $122,156,483 in accumulated depreciation 59,735,137
Buildings, net of $11,312,988 in accumulated depreciation 20,824,769
Improvements, net of $12,373,844 in accumulated depreciation 18,259,375
Machinery and equipment, net of $12,406,555 in
accumulated depreciation 3,692,648
Total capital assets, net 215,193,873
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 (488,702)
Net OPEB obligation (229,476)
General obligation bonds (34,228,760)
(Premium) discount on general obligation bonds (30,142)
Compensated absences (1,744,145)
Total long-term obligations (36,721,225)
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.5,944,795
Net position of governmental activities 223,541,715 $
See accompanying notes to financial statements.
48
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, 2015
Parks and Capital Nonmajor Total
General Recreation Improvements Governmental Governmental
Fund Fund Fund Funds Funds
Taxes:
Property 17,035,476 $ 5,219,476 $ 9,764 $ 2,204,053 $ 24,468,769 $
Other 3,320,856 - 1,272,610 48,000 4,641,466
Intergovernmental revenues 6,265,533 43,907 - 663,483 6,972,923
Grants and contributions 2,002 212,218 231,616 504,987 950,823
Charges for services 2,917,441 2,844,560 660,556 1,513,416 7,935,973
Licenses and permits 2,821,066 - - - 2,821,066
Fines and forfeitures 287,333 - - - 287,333
Investment income 70,843 17,850 14,709 420,748 524,150
Miscellaneous revenue 771,515 18,829 - - 790,344
Total revenues 33,492,065 8,356,840 2,189,255 5,354,687 49,392,847
Current:
General government 9,304,354 - 52,398 892,078 10,248,830
Highways and streets 2,371,461 - - - 2,371,461
Sanitation 2,235,135 - - - 2,235,135
Culture and recreation - 7,855,290 - 601,753 8,457,043
Public safety 14,311,143 - - 158,265 14,469,408
Capital outlay 492,547 610,117 3,689,567 2,790,437 7,582,668
Debt service:
Principal retirement - - - 1,623,436 1,623,436
Interest - - - 1,400,609 1,400,609
Total expenditures 28,714,640 8,465,407 3,741,965 7,466,578 48,388,590
Excess (deficiency) of revenues
over expenditures 4,777,425 (108,567) (1,552,710) (2,111,891) 1,004,257
Other financing sources (uses):
Proceeds from capital asset sales - 719 18,333 5,001 24,053
Transfers in 57,162 285,750 782,415 894,758 2,020,085
Transfers out (1,933,258) (166,000) - (89,577) (2,188,835)
Total other financing sources
(uses)(1,876,096) 120,469 800,748 810,182 (144,697)
Net change in fund balances 2,901,329 11,902 (751,962) (1,301,709) 859,560
Fund balances – beginning of year 17,614,960 2,754,377 4,084,956 10,737,208 35,191,501
Fund balances – end of year 20,516,289 $ 2,766,279 $ 3,332,994 $ 9,435,499 $ 36,051,061 $
See accompanying notes to financial statements.
Revenues:
Expenditures:
49
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, 2015
Net changes in fund balances—total governmental funds 859,560 $
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 ($6,174,147) exceeded capital outlay
($1,374,389) in the current period.(4,799,758)
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.(9,624)
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 135,049
Change in other unavailable revenues 76,590
Repayment of principal is an expenditure in the governmental funds but reduces
the liability in the statement of net position.
Repayments of general obligation bonds 1,623,436
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 434,834
Increase in net OPEB obligation (28,439)
Decrease in accrued interest payable 66,054
Amortization of bond deferred amounts, premiums and discounts (22,997)
Decrease in compensated absences 104,554
554,006
The net revenue of certain activities of internal service funds is reported with
governmental activities.282,615
Change in net position of governmental activities – statement of activities (1,278,126) $
See accompanying notes to financial statements.
50
22
CITY OF LAKE FOREST, ILLINOIS Exhibit A-7
Statement of Net Position
Proprietary Funds
April 30, 2015 Nonmajor - Governmental
Waterworks Deerpath Total Activities—
and Sewerage Golf Course Enterprise Internal Service
Assets Fund Fund Funds Funds
Current assets:
Cash and cash equivalents 7,817,400 $ 738,272 $ 8,555,672 $ 6,092,753 $
Receivables:
Accounts receivable 1,190,028 6,077 1,196,105 -
Other 97 - 97 971,120
Inventories - 83,326 83,326 307,378
Prepaid expenses 355 10,633 10,988 623,559
Total current assets 9,007,880 838,308 9,846,188 7,994,810
Noncurrent assets:
Capital assets:
Not being depreciated 1,318,438 95,517 1,413,955 -
Being depreciated, net of
accumulated depreciation 50,823,215 1,340,145 52,163,360 23,327
Total capital assets, net 52,141,653 1,435,662 53,577,315 23,327
Total noncurrent assets 52,141,653 1,435,662 53,577,315 23,327
Total assets 61,149,533 2,273,970 63,423,503 8,018,137
Deferred Outflows of Resources
Deferred loss on refunding 612,395 30,506 642,901 -
Liabilities
Current liabilities:
Accounts payable 233,486 162,914 396,400 358,519
Accrued liabilities 75,942 15,731 91,673 951,500
Accrued interest payable 155,675 7,634 163,309 -
Unearned revenue 16,983 411,449 428,432 -
Current portion of long-term obligations:
General obligation bonds 1,795,000 82,000 1,877,000 -
Accrued compensated absences 4,981 19 5,000 -
Total current liabilities 2,282,067 679,747 2,961,814 1,310,019
Noncurrent liabilities:
Advances from other funds 333,640 - 333,640 -
General obligation bonds payable (net of
unamortized discounts)14,994,647 731,191 15,725,838 -
Accrued compensated absences 188,680 720 189,400 59,737
Total noncurrent liabilities 15,516,967 731,911 16,248,878 59,737
Total liabilities 17,799,034 1,411,658 19,210,692 1,369,756
Net Position
Net investment in capital assets 35,964,401 652,977 36,617,378 23,327
Unrestricted 7,998,493 239,841 8,238,334 6,625,054
Total net position 43,962,894 $ 892,818 $ 44,855,712 6,648,381 $
Adjustment to reflect the consolidation of internal service fund activities related
to enterprise funds.703,586
Net position of business-type activities reported in the government-wide
statement of net position.45,559,298 $
See accompanying notes to financial statements.
Business-type Activities – Enterprise Funds
51
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, 2015
Nonmajor - Governmental
Waterworks Deerpath Total Activities—
and Sewerage Golf Course Enterprise Internal Service
Fund Fund Funds Funds
Operating revenues:
Charges for services 7,366,874 $ 1,414,092 $ 8,780,966 $ 8,884,433 $
Connection fees 113,965 - 113,965 -
Grants and contributions 486,101 - 486,101 -
Miscellaneous 67,529 125 67,654 -
Total operating revenues 8,034,469 1,414,217 9,448,686 8,884,433
Operating expenses:
General and administrative 2,079,749 631,238 2,710,987 8,606,778
Operations and maintenance 3,128,728 867,856 3,996,584 -
Depreciation 2,611,074 137,280 2,748,354 4,805
Total operating expenses 7,819,551 1,636,374 9,455,925 8,611,583
Operating income (loss) 214,918 (222,157) (7,239) 272,850
Nonoperating revenues (expenses):
Investment income 31,542 1,866 33,408 22,968
Gain on disposal of capital assets 1,621 - 1,621 -
Interest expense (534,336) (18,888) (553,224) -
Total nonoperating revenues
(expenses)(501,173) (17,022) (518,195) 22,968
Increase (decrease) in net position
before transfers (286,255) (239,179) (525,434) 295,818
Transfers in 2,750 166,000 168,750 -
Change in net position (283,505) (73,179) (356,684) 295,818
Net position – beginning of year 44,246,399 965,997 45,212,396 6,352,563
Net position – end of year 43,962,894 $ 892,818 $ 44,855,712 6,648,381 $
Adjustment to reflect the consolidation of internal service fund activities
related to enterprise funds 13,203
Change in net position of business-type activities reported in the
government-wide statement of activities (343,481) $
See accompanying notes to financial statements.
Business-type Activities – Enterprise Funds
52
24
CITY OF LAKE FOREST, ILLINOIS Exhibit A-9
Statement of Cash Flows
Proprietary Funds
For the Year Ended April 30, 2015
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 7,785,985 $ 1,563,110 $ 9,349,095 $ -$
Receipts from miscellaneous revenue 67,616 125 67,741 -
Receipts from interfund services provided - - - 8,213,344
Payments to suppliers (2,999,215) (841,860) (3,841,075) (7,662,244)
Payments to employees (1,917,202) (595,386) (2,512,588) (691,009)
Net cash flows from operating activities 2,937,184 125,989 3,063,173 (139,909)
Cash flows from noncapital financing activities:
Transfer from other funds 2,750 166,000 168,750 -
Net cash flows from noncapital financing
activities 2,750 166,000 168,750 -
Cash flows from capital and related financing activities:
Purchases of capital assets (1,442,582) (18,579) (1,461,161) -
Sale of equipment 1,621 - 1,621 -
Principal paid on capital debt (1,762,000) (85,000) (1,847,000) -
Interest paid on capital debt (446,620) (14,422) (461,042) -
Net cash flows from capital and
related financing activities (3,649,581) (118,001) (3,767,582) -
Cash flows from investing activities:
Interest and dividends received 31,542 1,866 33,408 22,968
Net cash flows from investing
activities 31,542 1,866 33,408 22,968
Net increase (decrease) in cash
and cash equivalents (678,105) 175,854 (502,251) (116,941)
Cash and cash equivalents – beginning of year 8,495,505 562,418 9,057,923 6,209,694
Cash and cash equivalents – end of year 7,817,400 $ 738,272 $ 8,555,672 $ 6,092,753 $
(Continued)
Business-type Activities – Enterprise Funds
53
25
CITY OF LAKE FOREST, ILLINOIS Exhibit A-9, Continued
Statement of Cash Flows (Continued)
Proprietary Funds
For the Year Ended April 30, 2015
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)214,918 $ (222,157) $ (7,239) $ 272,850 $
Adjustments to reconcile operating
income (loss) to net cash flows from
operating activities:
Depreciation expense 2,611,074 137,280 2,748,354 4,805
Changes in assets and liabilities:
Water sales receivable (180,956) - (180,956) -
Accounts receivable (1,325) 4,896 3,571 (671,089)
Other receivables 87 - 87 -
Other assets - 6,153 6,153 (54,248)
Due from other funds - - - -
Prepaid expenses 359,355 (10,633) 348,722 -
Accounts payable 75,720 97,247 172,967 (10,918)
Accrued liabilities 6,874 876 7,750 315,730
Unearned revenue 1,326 144,122 145,448 -
Compensated absences 16,932 (31,795) (14,863) 2,961
Advances (166,821) - (166,821) -
Total adjustments 2,722,266 348,146 3,070,412 (412,759)
Net cash flows from
operating activities 2,937,184 $ 125,989 $ 3,063,173 $ (139,909) $
See accompanying notes to financial statements.
Business-type Activities – Enterprise Funds
54
26
Exhibit A-10
Pension Private
Trust Purpose Agency
Assets Funds Trust Fund Fund
Cash and cash equivalents 861,873 $ 18,913 $ 60,174 $
Investments:
U.S. Treasury obligations 13,697,710 - -
U.S. Government agencies 4,871,909 - -
Municipal and corporate bonds 6,344,339 - -
Common stock 2,155,670 658,570 -
Equity mutual funds 30,922,739 - -
Real Estate Investment Fund 1,274,614 - -
Interest receivable 157,153 344 -
Prepaid expenses 18,411 - -
Total assets 60,304,418 677,827 60,174
Liabilities
Accounts payable 20,673 1,079 -
Due to other funds - 155,185 -
Due to special assessment districts - - 60,174
Total liabilities 20,673 156,264 60,174
Net Position
Restricted for pensions and other purposes 60,283,745 $ 521,563 $ -$
See accompanying notes to financial statements.
CITY OF LAKE FOREST, ILLINOIS
Statement of Fiduciary Net Position
Fiduciary Funds
April 30, 2015
55
27
Exhibit A-11
Pension Private
Trust Purpose
Funds Trust Fund
Additions:
Contributions:
Employer 2,874,490 $ -$
Employee 656,832 -
Total contributions 3,531,322 -
Interest income 1,261,190 10,548
Net appreciation in fair value of investments 2,489,921 43,356
Less investment expenses (209,786) -
Net investment income 3,541,325 53,904
Total additions 7,072,647 53,904
Deductions:
Pension benefits and refunds 3,963,554 -
Other administrative expenses 8,300 43,340
Total deductions 3,971,854 43,340
Change in net position 3,100,793 10,564
Restricted net position - beginning of year 57,182,952 510,999
Restricted net position - end of year 60,283,745 $ 521,563 $
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, 2015
56
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
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.
57
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
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.
58
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
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 2013 property tax levy is recognized as
revenue for the year ended April 30, 2015. 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
59
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
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.
(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 and Library are authorized to invest in the following types of securities under Illinois law and
the City’s investment policy:
• Bonds, notes, certificates of indebtedness, treasury bills, or other securities which are
guaranteed by the full faith and credit of the United States of America;
• Bonds, notes, debentures, or other similar obligations of U.S. Government or its agencies;
• Interest bearing bonds of any county, township, city, incorporated town, municipal
corporation, or school district, and the bonds shall be registered in the name of the
municipality or held under a custodial agreement at a bank, provided the bonds shall be
rated at the time of purchase within the 4 highest general classifications established by a
rating service of nationally recognized expertise in rating bonds of states and their political
subdivisions;
• Interest-bearing savings accounts, interest-bearing certificates of deposit, interest-bearing
deposits, or any other investments constituting direct obligations of any bank as defined
by the Illinois Banking Act (205 ILCS 5/1 et seq.), provided, however, that such
investments may be made only in banks which are insured by the Federal Deposit
Insurance Corporation;
• Commercial Paper – issuer must be a United States corporation with more than $500
million in assets, rating must be within the highest tier (e.g., A-1, P-1, F-1, D-1, or higher)
by two standard rating services, must mature within 180 days of purchase, such
purchases cannot exceed 10% of the corporation’s outstanding obligations, and such
purchases cannot exceed one-third of funds;
• Money Market Mutual Funds – registered under the Investment Company Act of 1940 (15
U.S.C.A. § 80a-1 et seq.), provided the portfolio is limited to bonds, notes, certificates,
treasury bills, or other securities which are guaranteed by the full faith and credit of the
federal government as to principal and interest;
60
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
32 (Continued)
• 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 certificate 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.
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.
61
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
33 (Continued)
(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.
(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.
62
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
34 (Continued)
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.
(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) Deferred Inflows of Resources and Unearned Revenue
In accordance with Governmental Accounting Standard Board (GASB) Statement No. 65, Items
Previously Recorded as Assets and Liabilities (GASB 65), 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.
63
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
35 (Continued)
(m) 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
position 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.
(n) Fund Balances
Governmental Accounting Standards Board Statement No. 54 (GASB 54), Fund Balance Reporting
and Governmental Fund Type Definitions establishes fund balance classifications that comprise a
hierarchy based primarily on the extent to which a government is bound to observe constraints
imposed upon the use of the resources reported in the governmental funds. Within the governmental
fund types, the City’s fund balances are reported in one of the following classifications:
Nonspendable – includes amounts that cannot be spent because they are either: a) not in
spendable form; or b) legally or contractually required to be maintained intact.
Restricted – includes amounts that are restricted to specific purposes, that is, when constraints
placed on the use of resources are either: a) externally imposed by creditors (such as through
debt covenants), grantors, contributors, or laws or regulations of other governments; or b) imposed
by law through constitutional provisions or enabling legislation.
Committed – includes amounts that can only be used for specific purposes pursuant to
constraints imposed by formal action of the City’s highest level of decision-making authority.
Committed amounts cannot be used for any other purpose unless the City removes or changes the
specified use by taking the same type of action it employed to previously commit those amounts.
The City’s highest level of decision-making authority rests with the City Council. The City passes
formal resolutions to commit their fund balances.
Assigned – includes amounts that are constrained by the City’s intent to be used for specific
purposes, but that are neither restricted nor committed. Intent is expressed by: a) the City Council
itself; or b) a body or official to which the City Council has delegated the authority to assign
amounts to be used for specific purposes. Annually, the City Council approves the fiscal policy
which delegates 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.
64
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
36 (Continued)
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.
Fund Balance Classifications
At April 30, 2015, 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 17,253 $ -$ -$ 1,173 $ 18,426 $
Inventory 89,895 - - - 89,895
Interfund advances 333,640 - - - 333,640
Long-term notes 1,208,044 - - - 1,208,044
Property held for resale - - - 380,000 380,000
Total nonspendable 1,648,832 - - 381,173 2,030,005
Restricted:
Culture and recreation - 2,766,279 - 331,721 3,098,000
Highways and streets - - - 308,187 308,187
Public safety - fire - - - 237,901 237,901
Public safety - police - - - 286,772 286,772
Cemetery perpetual care - - - 4,930,884 4,930,884
Affordable housing - - - 726,659 726,659
Capital projects - - 3,332,994 - 3,332,994
Parking lots 957,420 - - - 957,420
Debt service - - - 1,805,602 1,805,602
Total restricted 957,420 2,766,279 3,332,994 8,627,726 15,684,419
Assigned
Capital projects - - - 1,448,736 1,448,736
Unassigned 17,910,037 - - (1,022,136) 16,887,901
Total fund balances 20,516,289 $ 2,766,279 $ 3,332,994 $ 9,435,499 $ 36,051,061 $
(o) 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.
65
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
37 (Continued)
(p) New Accounting Pronouncements
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. 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).
GASB Statement No. 72, Fair Value Measurement and Application, will be effective for the City with its
year ended April 30, 2017. This statement addresses accounting and financial reporting issues related
to fair value measurements. The definition of fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. This statement provides guidance for determining a fair value measurement for
financial reporting purposes. This statement also provides guidance for applying fair value to certain
investments and disclosures related to all fair value measurements.
GASB Statement No. 73, Accounting and Financial Reporting for Pension and Related Assets That
Are Not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB
Nos. 67 and 68, will be effective for the City beginning with its year ended April 30, 2017, except those
provisions that address employers and governmental nonemployer contributing entities for pensions
that are not within the scope of GASB Statement No. 68, which are effective for the City beginning with
its year ended April 30, 2018. This statement will establish requirements for those pension and pension
plans that are not administered through a trust meeting specified criteria.
GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension
Plans, will be effective for the City beginning with its year ended April 30, 2018. This statement will
establish rules on reporting OPEB plans that administer benefits on behalf of governmental entities.
GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other
Than Pensions (Employer), will be effective for the City beginning with its year ended April 30, 2019.
This statement outlines reporting by governments that provide OPEB to their employees and for
governments that finance OPEB for employees of other governments.
GASB Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and
Local Governments, will be effective for the City beginning with its year ended April 30, 2017. This
statement reduces the GAAP hierarchy to two categories of authoritative GAAP and addresses the use
of authoritative and nonauthoritative literature in the event that the accounting treatment for a
transaction or other event is not specified within a source of authoritative GAAP.
66
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
38 (Continued)
GASB Statement No. 77, Tax Abatement Disclosures, will be effective for the City beginning with its
year ended April 30, 2017. This statement outlines the newly required disclosures relating to the nature
and magnitude of tax abatements.
Managem ent has not fully determined what impact, if any, these Statements may have on its financial
statements; however, GASB Statements 68, 71, and 75 are expected to have a material impact when
implemented.
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.
67
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
39 (Continued)
Note 3. Cash and Investments
Cash and investments are held separately and in pools by several of the City’s funds. The City maintains
various cash and investment pools that are available for use by all funds. Income from pooled investments is
allocated to the funds based on their proportional share of their investment balance. The deposits and
investments of the Police and Fire Pension Funds (Pension Funds) are held separately. A summary of cash
and investments as of April 30, 2015 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 42,714,977 318,200 543,373 79,087 1,901,180
Certificate of deposit 211,007 - - - -
Illinois Funds 3,502,251 - - - 16,188
Equity securities 4,148,029 15,596,005 18,757,018 658,570 -
U.S. Treasury obligations - 10,276,937 3,420,773 - -
U.S. Government agencies - 677,096 4,194,813 - -
Municipal/corporate bonds - 1,103,874 5,240,465 - -
Total 50,586,239 $ 27,972,112 $ 32,156,742 $ 737,657 $ 1,917,718 $
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.
68
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
40 (Continued)
Custodial Credit Risk – Deposits
Custodial credit risk for deposits is the risk that in the event of a financial institution failure, the City’s deposits
may not be returned. The City’s investment policy requires that deposits that exceed the amount insured by
FDIC, NCUA, and/or SIPC insurance protection be collateralized, at the rate of 110% of such deposits, by
U.S. Government Securities, obligations of Federal instrumentalities, obligations of the State of Illinois, or
general obligation bonds of the City. The Cemetery Investment Fund and the Pension Funds do not have a
deposit policy for custodial credit risk. As of April 30, 2015, 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, 2015, 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 10,276,937 $ -$ 6,939,812 $ 3,337,125 $ -$
U.S. Government agencies 677,096 - 637,010 40,086 -
Municipal/corporate bonds 1,103,874 236,691 768,245 98,938 -
Total Police Pension 12,057,907 236,691 8,345,067 3,476,149 -
Firefighters' Pension Fund:
U.S. Treasury obligations 3,420,773 563,903 1,411,707 1,445,163 -
U.S. Government agencies 4,194,813 682,427 1,077,625 579,505 1,855,256
Municipal/corporate bonds 5,240,465 481,149 2,355,757 2,210,459 193,100
Total Firefighters' Pension 12,856,051 1,727,479 4,845,089 4,235,127 2,048,356
Total fiduciary activities 24,913,958 $ 1,964,170 $ 13,190,156 $ 7,711,276 $ 2,048,356 $
Investment maturities (in years)
69
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
41 (Continued)
Credit Risk
Credit risk is the risk that the City or Pension Funds will not recover their investments due to the inability of
the counterparty to fulfill its obligation. The City’s investment policy limits the City’s exposure to credit risk by
limiting investments to the safest types as described in Note 1e.
The Cemetery and Pension 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, 2015, the City, Cemetery Investment Fund, and Pension Funds had the following fixed income
investments which are rated by Moody’s and/or Standard & 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 3,502,251 $ 3,502,251 $ -$ -$ -$ -$
Fiduciary activities:
Police Pension Fund:
U.S. Government agencies 677,096 $ -$ 677,096 $ -$ -$ -$
Municipal/corporate bonds 1,103,874 40,205 130,584 775,371 157,714 -
1,780,970 40,205 807,680 775,371 157,714 -
Firefighters' Pension Fund:
U.S. Government agencies 4,194,813 - 1,188,996 - - 3,005,817
Municipal/corporate bonds 5,240,465 281,574 569,661 2,077,701 2,231,538 79,991
9,435,278 281,574 1,758,657 2,077,701 2,231,538 3,085,808
Total fiduciary activities 11,216,248 $ 321,779 $ 2,566,337 $ 2,853,072 $ 2,389,252 $ 3,085,808 $
Component unit:
Lake Forest Library:
Illinois Funds 16,188 $ 16,188 $ -$ -$ -$ -$
Credit ratings
* These securities are not rated by either Moody's or Standard & 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. Neither the Firefighters’ Pension Fund nor the Police Pension Fund hold any investment with any
single issuer over 5% of the total portfolio.
70
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
42 (Continued)
Custodial Credit Risk
Custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to
recover the value of its investments or collateral securities that are in the possession of a third party. The
investment policies for the City, Cemetery and Pension Funds require investment securities be held by an
authorized custodial bank pursuant to a written custodial agreement.
Foreign Currency Risk
Foreign currency risk is the risk that changes in exchange rates will adversely affect the fair value of an
investment or deposit. As of April 30, 2015, 8.75% of the Firefighters’ Pension Fund’s assets were invested
in the Vanguard Star Fund, as well as the Franklin Mutual European Z Fund. 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, 2015, 15.19% 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. The
funds are subject to foreign currency risk; however, the funds are well diversified across international
regions. The Cemetery Fund had 17.34% of its assets invested in William Blair International Growth Fund as
of April 30, 2015.
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
2014 are intended to finance the fiscal year 2016 expenditures. Accordingly, the City recognized revenue
during the year ended April 30, 2015 for collections from the calendar year 2013 levy if it was received by
June 30, 2015. Property taxes levied for calendar year 2014 which will be collected in fiscal year 2016 are
recorded as receivables and a deferred inflow of resources.
71
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
43 (Continued)
Note 5. Interfund Balances and Activity
Due to/from Other Funds
The following balances at April 30, 2015 represent amounts due to/from other funds:
Receivable fund Payable fund Amount
Capital Improvement Fund Nonmajor Governmental 1,016,561 $
Nonmajor Governmental Fiduciary Fund 155,185
Total 1,171,746 $
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, 2015 represent advances between funds:
Receivable fund Payable fund Amount
General Fund Waterworks and Sewerage Fund 333,640 $
This balance resulted from operating transactions between funds and will be repaid over the next two years.
Transfers to/from Other Funds
Interfund transfers for the year ended April 30, 2015 were as follows:
Transfer In Fund(s)Purpose Amount
General Fund Reimbursement for TIF expenses 57,162$
Parks and Recreation Fund Transfer for operations 285,750
Capital Improvement Fund Transfer for capital outlay 750,000
Capital Improvement Fund Transfer for capital outlay 32,415
Waterworks and Sewerage Fund Transfer for operations 2,750
Nonmajor governmental Transfer for operations 239,239
Nonmajor governmental Transfer for debt service 655,519
Nonmajor business activity Transfer for operations 166,000
2,188,835$
Transfer Out Fund(s)
General Fund Transfer for capital outlay 750,000$
General Fund Transfer for debt service 655,519
General Fund Transfer for operations 285,750
General Fund Transfer for operations 239,239
General Fund Transfer for operations 2,750
Parks and Recreation Fund Transfer for operations 166,000
Nonmajor governmental Reimbursement for TIF expenses 57,162
Nonmajor governmental Transfer for capital outlay 32,415
2,188,835$
72
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
44 (Continued)
Note 6. Capital Assets
A summary of capital asset activity for the year ended April 30, 2015 is as follows:
Balance Additions Balance
May 1, 2014 or Transfers Disposals April 30, 2015
Governmental Activities:
Capital assets not being depreciated:
Land and land improvements 45,303,412 $ -$ -$ 45,303,412 $
Infrastructure – land 66,740,770 - - 66,740,770
Construction in progress 53,345 637,762 53,345 637,762
Total capital assets not being
depreciated 112,097,527 637,762 53,345 112,681,944
Capital assets being depreciated:
Infrastructure 181,891,620 - - 181,891,620
Buildings 32,137,757 - - 32,137,757
Improvements other
than buildings 30,522,072 111,147 - 30,633,219
Machinery and equipment 15,821,139 678,825 347,006 16,152,958
Total capital assets being
depreciated 260,372,588 789,972 347,006 260,815,554
Less accumulated depreciation:
Infrastructure 119,258,258 2,898,225 - 122,156,483
Buildings 10,560,997 751,991 - 11,312,988
Improvements other
than buildings 10,973,528 1,400,316 - 12,373,844
Machinery and equipment 11,645,945 1,128,420 337,382 12,436,983
Total accumulated
depreciation 152,438,728 6,178,952 337,382 158,280,298
Governmental Activity
capital assets – net 220,031,387 $ (4,751,218) $ 62,969 $ 215,217,200 $
Depreciation expense for governmental activities for the year ended April 30, 2015 was charged to functions
as follows:
1,865,911 $
3,071,999
130,532
916,419
194,091
6,178,952 $
Public safety
General government
Highways and streets
Sanitation
Culture and recreation
73
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
45 (Continued)
Balance Disposals Balance
May 1, 2014 Additions or Transfers April 30, 2015
Business-type activities
Capital assets not being depreciated:
Land 459,369 $ -$ -$ 459,369 $
Construction in progress 921,811 954,586 921,811 954,586
Total capital assets not being
depreciated 1,381,180 954,586 921,811 1,413,955
Capital assets being depreciated:
Buildings 27,021,790 - - 27,021,790
Improvements other
than buildings 41,066,356 1,409,807 - 42,476,163
Machinery and equipment 4,747,841 18,579 15,625 4,750,795
Sanitary sewers and
related property 29,461,745 - - 29,461,745
Total capital assets being
depreciated 102,297,732 1,428,386 15,625 103,710,493
Less accumulated depreciation:
Buildings 11,589,687 1,003,570 - 12,593,257
Improvements other
than buildings 18,820,022 963,766 - 19,783,788
Machinery and equipment 2,853,110 212,660 15,625 3,050,145
Sanitary sewers and
related property 15,551,585 568,358 - 16,119,943
Total accumulated
depreciation 48,814,404 2,748,354 15,625 51,547,133
Capital assets – net 54,864,508 $ (365,382) $ 921,811 $ 53,577,315 $
74
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
46 (Continued)
Balance Balance
May 1, 2014 Additions Disposals April 30, 2015
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 359,066 - 140,066 219,000
Capital assets being depreciated:
Buildings 1,180,907 - - 1,180,907
Improvements other
than buildings 2,097,360 234,145 - 2,331,505
Machinery and equipment 3,723,509 352,050 220,677 3,854,882
Total capital assets being
depreciated 7,001,776 586,195 220,677 7,367,294
Less accumulated depreciation:
Buildings 630,828 23,338 - 654,166
Improvements other
than buildings 902,012 172,444 - 1,074,456
Machinery and equipment 2,150,014 349,088 220,677 2,278,425
Total accumulated
depreciation 3,682,854 544,870 220,677 4,007,047
Capital assets – net 3,677,988 $ 41,325 $ 140,066 $ 3,579,247 $
75
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
47 (Continued)
Note 7. Long-term Obligations
The City issues debt to finance various capital projects and other construction activities. The following is a
summary of the changes in long-term obligations of the City for the year ended April 30, 2015:
Amounts
Balance Balance due within
May 1, 2014 Additions Deductions April 30, 2015 one year
Governmental activities:
General obligation bonds 35,852,196 $ -$ (1,623,436) $ 34,228,760 $ 1,618,218 $
Premium on general obligation
bonds 99,415 - (17,220) 82,195 -
Discount on general obligation
bonds (59,063) - 7,010 (52,053) -
Total general obligation bonds 35,892,548 - (1,633,646) 34,258,902 1,618,218
Net OPEB obligation*201,037 28,439 - 229,476 -
Compensated absences**1,905,475 2,309,076 (2,410,669) 1,803,882 100,000
Total governmental activities 37,999,060 $ 2,337,515 $ (4,044,315) $ 36,292,260 $ 1,718,218 $
Business-type activities:
General obligation bonds 19,245,000 $ -$ (1,847,000) $ 17,398,000 $ 1,877,000 $
Premium on general obligation
bonds 256,725 - (51,887) 204,838 -
Compensated absences 209,263 234,662 (249,525) 194,400 5,000
Total business-type activities 19,710,988 $ 234,662 $ (2,148,412) $ 17,797,238 $ 1,882,000 $
Component Unit - Lake Forest Library
Capital lease 57,287 $ -$ (31,749) $ 25,538 $ 25,538 $
Net OPEB obligation*12,212 18,902 - 31,114 -
Compensated absences 173,283 256,532 (238,014) 191,801 5,000
Total component unit -
Lake Forest Library 242,782 $ 275,434 $ (269,763) $ 248,453 $ 30,538 $
* 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.
76
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
48 (Continued)
General obligation debt payable for the City as of April 30, 2015 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.530,000 $
Special Service Area 26 Special Tax Bonds due in annual installments of
$9,545 to $20,701 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.141,823
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.1,134,937
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.7,250,000
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.3,025,000
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.195,000
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.3,992,000
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.9,535,000
Total governmental activities 34,228,760 $
77
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
49 (Continued)
Business-type Activities
General obligation and revenue bonds:
Waterworks and Sewerage Fund:
2011 A Series General Obligation Bonds due in annual installments of
$120,000 to $140,000 through December 15, 2020; interest at
1.5% to 3%, due semiannually on June 15 and December 15. Funded by
Water and Sewer Fund revenues.775,000 $
2011 B Series General Obligation Bonds due in annual installments of
$1,254,000 to $2,004,000 through December 15, 2023; interest at
2% to 3%, due semiannually on June 15 and December 15. Funded by
Water and Sewer Fund revenues.15,819,500
Nonmajor Enterprise Fund:
2011 B Series General Obligation Bonds due in annual installments of
$78,000 to $100,000 through December 15, 2023; interest at
4% to 4.38%, due semiannually on June 15 and December 15.
Funded by Golf Course Fund revenues 803,500
Total Business-type Activities 17,398,000 $
Annual debt service requirements to maturity for general obligation bonds are as follows:
Years Principal Interest Principal Interest Total
2016 1,618,218 $ 1,293,624 $ 1,877,000 $ 432,288 $ 5,221,130 $
2017 1,568,336 1,250,042 1,902,000 395,398 5,115,776
2018 1,723,796 1,206,165 1,952,000 357,358 5,239,319
2019 1,869,625 1,155,188 1,987,000 308,870 5,320,683
2020 2,060,850 1,098,270 2,067,000 259,520 5,485,640
2021-2025 10,772,935 4,414,772 7,613,000 505,171 23,305,878
2026-2030 8,825,000 2,537,712 - - 11,362,712
2031-2033 5,790,000 555,500 - - 6,345,500
Total 34,228,760 $ 13,511,273 $ 17,398,000 $ 2,258,605 $ 67,396,638 $
Governmental activities Business-type activities
78
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
50 (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 percent. 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 (72,396)
Total 24,133$
The future minimum lease obligations and the net present value of these minimum lease payments as of
April 30, 2015 were as follows:
Lake Forest
Year Ending April 30 Library
2016 25,651$
Less: Amount representing interest (113)
Present value of minimum lease payments 25,538$
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.
79
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
51 (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 2015 and 2014 were 12.29 percent and 13.73 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 $2,120,603 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
2015 2,120,603 $ 100 %-$
2014 2,175,340 100 -
2013 1,895,967 100 -
The required contributions for 2015 and 2014 were determined as part of the December 31, 2013 and
2012 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 percent a year, attributable to inflation, (c) additional
projected salary increases ranging from 0.4 percent to 10 percent per year depending on age and
service, attributable to seniority/merit, and (d) postretirement 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 29 year basis.
(e) Funded Status and Funding Progress
As of December 31, 2014, the most recent actuarial valuation date, the regular plan was 74.67 percent
funded. The actuarial liability for benefits was $50,319,970 and the actuarial value of assets was
$37,573,995 resulting in an unfunded actuarial accrued liability (UAAL) of $12,745,975. The covered
payroll (annual payroll of active employees covered by the plan) was $16,265,473 and the ratio of the
UAAL to the covered payroll was 78 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.
80
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
52 (Continued)
Police Pension Fund – GASB Statement No. 67 Disclosures
(a) Summary of Significant Accounting Policies
Basis of Accounting – The financial statements are prepared using the accrual basis of accounting.
Employee and employer contributions are recognized when due, pursuant to statutory or contractual
requirements. Benefits and refunds are recognized when due and payable in accordance with the
terms of the plan. Administrative costs are financed through investment earnings.
Due to the fact that the Police Pension Plan does not issue stand-alone statements, the City is
required to report all required disclosures pursuant to GASB Statement No. 67, Financial Reporting for
Pension Plans, for the year ending April 30, 2015.
(b) Plan Description
Plan Administration – Sworn police personnel are covered by the Police Pension Plan, which is a
defined benefit single-employer pension plan administered by the City of Lake Forest. Although this is
a single-employer pension plan, the defined benefits and employee and employer contribution levels
are governed by Article 3 of the Illinois Pension Code (40 ILCS/Art. 3) and may be amended only by
the Illinois legislature. The City accounts for the Plan as a Pension Trust Fund. The City does not
however, separately issue a financial report for the Plan. An actuarial valuation was performed as of
April 30, 2015, and, accordingly, the most recent available information has been presented.
Management of the Police Pension Plan is vested in the Police Pension Board which consists of five
members, two members are elected from and by the active police, one is elected from and by the
beneficiaries and two are appointed by the Mayor with the approval of the City Council. There have
been no changes in the makeup of the Board during fiscal year 2015.
Plan Membership - Membership of each plan consisted of the following at April 30, 2015:
Police
Pension
Inactive plan members, or their beneficiaries,
currently receiving benefits 38
Inactive plan members entitled to but not yet
receiving benefits 2
Active plan members 39
Total 79
81
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
53 (Continued)
Benefits Provided –The Police Pension Plan provides retirement benefits as well as death and
disability benefits. Covered employees hired before January 1, 2011 attaining the age of 50 or more
with 20 or more years of credible service are entitled to receive an annual retirement benefit equal to
one half of the salary attached to the rank held on the last day of service, or for one year prior to the
last day, whichever is greater. The annual benefit shall be increased by 2.5 percent of such salary for
each additional year of service over 20 years up to 30 years, and 1 percent of such salary for each
additional year of service over 30 years, to a maximum of 75 percent of such salary.
Covered employees hired on or after January 1, 2011 attaining the age of 55 or more with 10 or more
years of credible service are entitled to receive an annual retirement benefit of 2.5 percent of final
average salary for each year of service, with a maximum salary cap of $106,800 as of January 1,
2011. The maximum salary cap increases each year thereafter. The monthly benefit of a police officer
hired before January 1, 2011, who retired with 20 or more years of services after January 1, 1977 shall
be increased annually, following the first anniversary date of retirement and be paid upon reaching the
age of at least 55 years, by 3 percent of the original pension and 3 percent compounded annually
thereafter. The monthly pension of a police officer hired on or after January 1, 2011, shall be
increased annually, following the later of the first anniversary date of retirement or the month following
the attainment of age 60, but the lessor of 3 percent or one half of the consumer price index.
Employees with at least 10 years but less than 20 years of credited service may retire at or after age
60 and receive a reduced benefit.
Contributions – Covered employees are required to contribute 9.91 percent of their base salary to the
plan. If an employee leaves covered employment with less than 20 years of service, accumulated
employee contributions may be refunded without accumulated interest. The Illinois Pension Code (40
ILCS 5/Art. 3) establishes the contribution requirements of the City. The annual requirement is equal
to (1) the normal cost of the pension fund for the year plus (2) an amount sufficient to bring the total
assets of the pension fund up to 90% of the actuarial liabilities of the pension fund by the year 2040.
Only the State legislature can amend the contribution requirements. For the year ended April 30,
2015, the statutory minimum which the City was required to contribute was $1,413,085 or 39.35
percent of member payroll, to the Police Pension Fund.
(c) Investments
Investment Policy – The pension plan’s policy in regard to the allocation of invested assets is
established and may be amended by the Police Pension Board by a majority vote of its members. It is
the policy of the Police Pension Board to pursue an investment strategy that minimizes risk through the
prudent diversification of the portfolio across a broad selection of distinct asset classes. The pension
plan’s investment policy discourages the use of cash equivalents, except for liquidity purposes, and
aims to refrain from dramatically shifting asset class allocations over short time spans. See Note 1 for
more details on the Police Pension’s investment policy. The following is the Board’s adopted asset
allocation policy as of April 30, 2015:
82
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
54 (Continued)
Target
Asset Class Asset Allocation
Cash and Cash Equivalents 1%
Fixed Income 45%
U.S. Equity 35%
International Equity 14%
Real Estate 5%
100%
The long-term expected rate of return on pension plan investments was determined using a building-
block method. The best estimate of future real rates of return are developed for each of the major
asset classes. Future real rates of return are weighted based on the target asset allocation as adopted
by the Board within the investment policy. Expected inflation is added back in. Adjustment is made to
reflect geometric returns. The following are the long-term expected arithmetic real rates of return by
asset class as of April 30, 2015:
Target Long-Term Long-Term Long-Term
Asset Allocation Expected Rate Inflation Expected Real
Asset Class in Asset Class of Return Expectations Rate of Return
Cash and Cash Equivalents 0% - 5%2.50%2.20%0.30%
Fixed Income 35% - 55%3.70%2.20%1.50%
U.S. Equity 25% - 45%8.20%2.20%6.00%
International Equity 8% - 20%8.50%2.20%6.30%
Real Estate 0% - 10%8.10%2.20%5.90%
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 or international
exchange are valued at the last reported sales price at current exchange rates. Real estate assets are
reported at fair value utilizing an income approach to valuation. By contract, an independent appraisal
is obtained once every year to determine the fair market value of the real estate assets.
Significant Investments – Information on significant investments is presented in Note 3 under
“Concentration of Credit Risk.”
Rate of Return – For the year ended April 30, 2015, the annual money-weighted rate of return on
pension plan investments, net of pension plan investment expense, was 6.79 percent. The money-
weighted rate of return expresses investment performance, net of investment expense, adjusted for
the changing amounts actually invested.
83
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
55 (Continued)
(d) Net Pension Liability of the City
The components of net pension liability of the City at April 30, 2015, are as follows:
Total pension liability 52,530,895 $
Plan fiduciary net position 28,025,755
City's net pension liability 24,505,140 $
Plan fiduciary net position as a percentage of the
total pension liability 53.35%
The total pension liability was determined by an actuarial valuation as of April 30, 2015, using the
following methods and actuarial assumptions, applied to all periods included in the measurement:
Methods and Assumptions
Valuation date April 30, 2015
Actuarial cost method Entry Age Normal
Amortization method Level Percentage of Payroll
Discount Rate used for the Total Pension Liability 7.00%
Long-Term Expected Rate of Return on Plan Assets 7.00%
Projected Individual Salary Increases 5.50%
Inflation Rate Included 3.00%
Mortality Table RP 2000 CHBCA
Mortality rates were based on the RP-2000 CHBCA Mortality Table. The actuarial assumptions used
in the April 30, 2015 valuation were based on the results of an actuarial experience study conducted by
the Illinois Department of Insurance dated September 26, 2012.
Discount Rate – The discount rate used to measure the total pension liability is 7.0 percent. The
projection of cash flows used to determine the discount rate assumed that plan member contributions
will be made at the current contribution rate and that City contributions will be made at rates equal to
the difference between actuarially determined contribution rates and the member rate. Cash flo w
projections are used to determine the extent to which the Plan’s future net position will be able to cover
future benefit payments. To the extent future benefit payments are covered by the Plan’s projected net
position, the expected long-term rate of return on plan assets is used to determine the portion of the
net pension liability associated with those payments. The Plan’s projected net position is expected to
cover future benefit payments for the entire projected period. Therefore, the long-term expected rate
of return on pension plan assets was applied to all years.
84
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
56 (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the
net pension liability of the City, calculated using the discount rate of 7.0 percent, as well as what the
City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (6.0 percent) or 1-percentage-point higher (8.0 percent) than the current rate.
1% Decrease
(6.0%)
Current
Discount Rate
(7.0%)
1% Increase
(8.0%)
City's net pension liability 31,246,977 $ 24,505,140 $ 18,900,848 $
The schedule of changes in net pension liability, total pension liability and related ratios and investment
returns and the schedule of contributions are presented as Required Supplementary Information (RSI)
following the notes to the financial statements.
Fire Pension Fund – GASB Statement No. 67 Disclosures
(a) Summary of Significant Accounting Policies
Basis of Accounting – The financial statements are prepared using the accrual basis of accounting.
Employee and employer contributions are recognized when due, pursuant to statutory or contractual
requirements. Benefits and refunds are recognized when due and payable in accordance with the
terms of the plan. Administrative costs are financed through investment earnings.
Due to the fact that the Fire Pension Plan does not issue stand-alone statements, the City is required
to report all required disclosures pursuant to GASB Statement No. 67, Financial Reporting for Pension
Plans, for the year ending April 30, 2015.
(b) Plan Description
Plan Administration – Sworn firefighter personnel are covered by the Firefighters’ Pension Plan, which
is a defined benefit single-employer pension plan administered by the City of Lake Forest. Although
this is a single-employer pension plan, the defined benefits and employee and employer contribution
levels are governed by Article 4 of the Illinois Pension Code (40 ILCS 5/Art. 4) and may be amended
only by the Illinois legislature. The City accounts for the Plan as a Pension Trust Fund. The City does
not, however, separately issue a financial report for the plan.
(b) Plan Description (Continued)
An actuarial valuation was performed as of April 30, 2015, and, accordingly, the most recent available
information has been presented.
Management of the Firefighters’ Pension Plan is vested in the Firefighters’ Pension Board which
consists of five members, two members are elected from and by the active firefighters, one is elected
from and by the beneficiaries and two are appointed by the Mayor with the approval of the City
Council. There have been no changes in the makeup of the Board during fiscal year 2015.
85
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
57 (Continued)
Plan Membership - Membership of each plan consisted of the following at April 30, 2015:
Firefighters'
Pension
Inactive plan members, or their beneficiaries,
currently receiving benefits 34
Inactive plan members entitled to but not yet
receiving benefits 4
Active plan members 33
Total 71
Benefits Provided –The Firefighters’ Pension Plan provides retirement benefits as well as death and disability
benefits. Covered employees hired before January 1, 2011 attaining the age of 50 or more with 20 or
more years of credible service are entitled to receive an annual retirement benefit equal to one half of
the salary attached to the rank held on the last day of service, or for one year prior to the last day,
whichever is greater. The annual benefit shall be increased by 2.5 percent of such salary for each
additional year of service over 20 years up to 30 years, and 1 percent of such salary for each
additional year of service over 30 years, to a maximum of 75 percent of such salary.
Covered employees hired on or after January 1, 2011 attaining the age of 55 or more with 10 or more
years of credible service are entitled to receive an annual retirement benefit of 2.5 percent of final
average salary for each year of service, with a maximum salary cap of $106,800 as of January 1,
2011. The maximum salary cap increases each year thereafter. The monthly benefit of a firefighter
hired before January 1, 2011, who retired with 20 or more years of service after January 1, 1977 shall
be increased annually, following the first anniversary date of retirement and be paid upon reaching the
age of at least 55 years, by 3 percent of the original pension and 3 percent compounded annually
thereafter. The monthly pension of a firefighter hired on or after January 1, 2011, shall be increased
annually, following the later of the first anniversary date of retirement or the month following the
attainment of age 60, but the lessor of 3 percent or one half of the consumer price index. Employees
with at least 10 years but less than 20 years of credited service may retire at or after age 60 and
receive a reduced benefit.
Contributions – Covered employees are required to contribute 9.455 percent of their base salary to the
plan. If an employee leaves covered employment with less than 20 years of service, accumulated
employee contributions may be refunded without accumulated interest. The Illinois Pension Code (40
ILCS 5/Art. 4) establishes the contribution requirements of the City. The annual requirement is equal
to (1) the normal cost of the pension fund for the year plus (2) an amount sufficient to bring the total
assets of the pension fund up to 90 percent of the actuarial liabilities of the pension fund by the year
2040. Only the State legislature can amend the contribution requirements. For the year ended
April 30, 2015, the statutory minimum which the City was required to contribute was $1,082,349, or
34.79 percent of member payroll, to the Firefighters’ Pension Fund.
86
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
58 (Continued)
(c) Investments
Investment Policy – The pension plan’s policy in regard to the allocation of invested assets is
established and may be amended by the Firefighters’ Pension Board by a majority vote of its
members. It is the policy of the Firefighters’ Pension Board to pursue an investment strategy that
minimizes risk through the prudent diversification of the portfolio across a broad selection of distinct
asset classes. The pension plan’s investment policy discourages the use of cash equivalents, except
for liquidity purposes, and aims to refrain from dramatically shifting asset class allocations over short
time spans. See Note 1 for more details on the Firefighters’ Pension’s investment policy. The
following is the Board’s adopted asset allocation policy as of April 30, 2015:
Target
Asset Class Asset Allocation
Cash and Cash Equivalents 0%
Fixed Income 45%
Equities 53%
Alternatives 2%
100%
The long-term expected rate of return on pension plan investments was determined using a building-
block method. The best estimate of future real rates of return are developed for each of the major
asset classes. Future real rates of return are weighted based on the target asset allocation as adopted
by the Board within the investment policy. Expected inflation is added back in. Adjustment is made to
reflect geometric returns. The following are the long-term expected arithmetic real rates of return by
asset class as of April 30, 2015:
Target Long-Term Long-Term Long-Term
Asset Allocation Expected Rate Inflation Expected Real
Asset Class in Asset Class of Return Expectations Rate of Return
Cash and Cash Equivalents 0%3.00%2.10%0.90%
Fixed Income 45%5.73%2.10%3.63%
Equities 53%10.75%2.10%8.65%
Alternatives 2%8.98%2.10%6.88%
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 or international
exchange are valued at the last reported sales price at current exchange rates. Investments that do
not have an established market are reported at estimated fair value.
Significant Investments – Information on significant investments is presented in Note 3 under
“Concentration of Credit Risk.”
87
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
59 (Continued)
Rate of Return – For the year ended April 30, 2015, the annual money-weighted rate of return on
pension plan investments, net of pension plan investment expense, was 6.48 percent. The money-
weighted rate of return expresses investment performance, net of investment expense, adjusted for
the changing amounts actually invested.
(d) Net Pension Liability of the City
The components of net pension liability of the City at April 30, 2015, are as follows:
Total pension liability 43,938,314 $
Plan fiduciary net position 32,257,990
City's net pension liability 11,680,324 $
Plan fiduciary net position as a percentage of the
total pension liability 73.42%
The total pension liability was determined by an actuarial valuation as of April 30, 2015, using the
following methods and actuarial assumptions, applied to all periods included in the measurement:
Methods and Assumptions
Valuation date April 30, 2015
Actuarial cost method Entry Age Normal
Amortization method Level Percentage of Payroll
Discount Rate used for the Total Pension Liability 7.00%
Long-Term Expected Rate of Return on Plan Assets 7.00%
Projected Individual Salary Increases 5.50%
Inflation Rate Included 3.00%
Mortality Table RP 2000 CHBCA
Mortality rates were based on the RP-2000 CHBCA Mortality Table. The actuarial assumptions used
in the April 30, 2015 valuation were based on the results of an actuarial experience study conducted by
the Illinois Department of Insurance dated September 26, 2012.
88
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
60 (Continued)
Discount Rate – The discount rate used to measure the total pension liability is 7.0 percent. The
projection of cash flows used to determine the discount rate assumed that plan member contributions
will be made at the current contribution rate and that City contributions will be made at rates equal to
the difference between actuarially determined contribution rates and the member rate. Cash flow
projections are used to determine the extent to which the Plan’s future net position will be able to cover
future benefit payments. To the extent future benefit payments are covered by the Plan’s projected net
position, the expected long-term rate of return on plan assets is used to determine the portion of the
net pension liability associated with those payments. The Plan’s projected net position is expected to
cover future benefit payments for the entire projected period. Therefore, the long-term expected rate
of return on pension plan assets was applied to all years.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the
net pension liability of the City, calculated using the discount rate of 7.0 percent, as well as what the
City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (6.0 percent) or 1-percentage-point higher (8.0 percent) than the current rate.
1% Decrease
(6.0%)
Current
Discount Rate
(7.0%)
1% Increase
(8.0%)
City's net pension liability 17,146,694 $ 11,680,324 $ 7,101,976 $
The schedule of changes in net pension liability, total pension liability and related ratios and investment
returns and the schedule of contributions are presented as Required Supplementary Information (RSI)
following the notes to the financial statements.
89
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
61 (Continued)
Police and Fire Pension Funds – GASB Statement No. 27 Disclosures
The following discussions are specific to the City’s current year financial statements and differ, in
certain respects, from those presented on previous pages, which were included as part of the
implementation of GASB 67 at the Pension Plan level. Effective for fiscal years ending on or after April
30, 2015, the following disclosures will no longer apply to the City’s financial statements, due to the
required implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions,
as discussed in Note 1(p).
The information included in this section pertaining to the City’s Police Pension Fund and Firefighters’
Pension Fund are based on the actuarial valuations performed on April 30, 2015. The actuarial
valuations were performed to determine the City’s required contribution and annual pension costs for
the respective plans for the fiscal year ended April 30, 2015.
(a) Annual Pension Cost and Net Pension Asset
The City’s annual pension cost and net pension asset for the Police and Firefighters’ Pension Plans for
fiscal year 2015 were as follows:
Police Firefighters'
Pension Pension
Annual required contribution 1,508,450 $ 950,325 $
Interest on net pension obligation (81,916) (57,944)
Adjustment to annual required contribution 70,718 50,023
Annual pension cost 1,497,252 942,404
Contributions made 1,706,203 1,168,287
Increase in net pension asset 208,951 225,883
Net pension asset at April 30, 2014 1,170,226 827,768
Net pension asset at April 30, 2015 1,379,177 $ 1,053,651 $
The net pension assets are reported by the City in the government-wide Statement of Net Position.
90
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
62 (Continued)
(b) Methods and Assumptions
Other related information is as follows:
Police Pension Firefighters' Pension
Contribution rates - City 47.51%37.55%
Contribution rates - plan members 9.91%9.46%
Actuarial valuation date 4/30/15 4/30/15
Actuarial cost method Entry Age Entry Age
Amortization method Level Percentage Level Percentage
of pay, closed of pay, closed
Remaining amortization period 26 years 26 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:
Tier 1 3.00% per year 3.00% per year
Tier 2 2.00% per year 2.00% per year
91
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
63 (Continued)
(c) Plan Financial Statements
Following are condensed financial statements for the Police and Firefighters’ Pension Plans as of and
for the year ended April 30, 2015:
Police Firefighters'
Pension Pension
Assets:
Cash and cash equivalents 318,200 $ 543,673 $
Investments 27,653,912 31,613,069
Other receivables 57,648 99,505
Prepaid expenses 7,945 10,466
Total assets 28,037,705 32,266,713
Liabilities:
Accounts payable 11,950 8,723
Net position:
Restricted for pensions 28,025,755 $ 32,257,990 $
Additions:
Employer contributions 1,706,203 $ 1,168,287 $
Employee contributions 360,156 296,676
Interest income 556,547 704,643
Net appreciation in fair value of investments 1,232,546 1,257,375
Less investment expenses (119,585) (90,201)
Total additions 3,735,867 3,336,780
Deductions:
Pension benefits and refunds 2,193,705 1,769,849
Administrative expenses 4,150 4,150
Total deductions 2,197,855 1,773,999
Changes in net position 1,538,012 1,562,781
Restricted net position - beginning of year 26,487,743 30,695,209
Restricted net position - end of year 28,025,755 $ 32,257,990 $
Statement of Fiduciary Net Position
Statement of Changes in Fiduciary Net Position
92
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
64 (Continued)
(d) Three Year Trend Information
Annual Net
Year Pension Pension
Ending Cost (APC)Asset
Police Pension:4/30/15 1,497,252 $ 114.0 %1,379,177 $
4/30/14 1,370,190 114.1 1,170,226
4/30/13 1,361,832 110.3 976,452
Firefighters' Pension:
4/30/15 942,404 $ 124.0 %1,053,651 $
4/30/14 885,386 123.2 827,768
4/30/13 886,429 115.8 622,459
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, 2015, 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 28,025,755 $ 52,530,895 $ 24,505,140 $ 53.4 %3,590,934 $ 682.4 %
Firefighters'32,257,990 43,938,314 11,680,324 73.4 3,111,216 375.4
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.
93
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
65 (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 2015,
the City contributed $200,394, 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)223,399 $ 22,915 $
Interest on net OPEB obligation 8,041 488
Adjustment to annual required contribution (6,701) (407)
Annual OPEB cost 224,739 22,996
Contribution made (196,300) (4,094)
Increase (decrease) in net OPEB obligation 28,439 18,902
Net OPEB obligation beginning of year 201,037 12,212
Net OPEB obligation end of year 229,476 $ 31,114 $
The annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for 2015, 2014 and 2013 were as follows:
Percentage
Annual of Annual
Fiscal Year OPEB OPEB Cost Net OPEB
Ending Cost Contributed Obligation
City:
04/30/2015 224,739 $ 87.3%229,476 $
04/30/2014 146,631 100.3%201,037
04/30/2013 96,080 66.1%201,480
Library:
04/30/2015 22,996 $ 17.8%31,114 $
04/30/2014 3,842 0.0%12,212
04/30/2013 2,764 0.0%8,370
94
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
66 (Continued)
(d) Funded Status and Funding Progress
As of April 30, 2015 (latest actuarial valuation date), the City’s plan was 100 percent unfunded. The
actuarial accrued liability for benefits was $3,786,380, and the actuarial value of assets was $0
(zero), resulting in an unfunded actuarial accrued liability (UAAL) of $3,786,380. The covered payroll
(annual payroll of active employees covered by the plan) was $18,087,734, and the ratio of the
UAAL to the covered payroll was 20.93 percent. As of the same date, the Library’s plan was 100%
unfunded. The actuarial accrued liability for benefits was $272,766, and the actuarial value of assets
was $0 (zero), resulting in an unfunded actuarial accrued liability (UAAL) of $272,766. The covered
payroll (annual payroll of active employees covered by the plan) was $1,288,196, and the ratio of
the UAAL to the covered payroll was 21.17 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, 2015 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 10 percent initially, reduced by decrements to an
ultimate rate of 5.5 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, 2015 was 30 years.
95
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
67 (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.
96
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
68 (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. The City has not had significant reductions in insurance coverage from the
previous fiscal year nor did settlements exceed insurance coverage in any of the last three years.
Beginning of Claims and End of
Fiscal Year Changes in Claim Fiscal Year
Liability Estimates Payments Liability
2013-2014 207,647 $ 287,443 $ 346,109 $ 148,981 $
2014-2015 148,981 379,331 383,487 144,825
(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).
97
CITY OF LAKE FOREST, ILLINOIS
Notes to Financial Statements
April 30, 2015
69 (Concluded)
Changes in the balances of claims liabilities for the years ended April 30, 2015 and 2014 are as
follows:
Beginning of End of
Fiscal Year Changes in Claim Fiscal Year
Liability Estimates Payments Liability
2013-2014 360,659 $ 4,440,345 $ 4,272,355 $ 528,649 $
2014-2015 528,649 5,176,240 4,888,995 815,894
The City has not had significant reductions in insurance coverage during the year nor did settlements
exceed insurance coverage in any of the last three years.
Note 13. Commitments and Contingencies
As of April 30, 2015, 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 Cit y.
The City has outstanding construction contracts with contractors totaling $186,402 at April 30, 2015.
The Police Pension Fund has an outstanding unfunded commitment of $300,000 to Principal Real Estate
Investment Fund at April 30, 2015.
Note 14. Subsequent Events
On August 3, 2015, the City Council approved an ordinance authorizing the issuance of General Obligation
Bonds, Series 2015 for $9,780,000. The City’s Aaa Moody’s rating was affirmed. The proceeds of the
Bonds will be used for the purpose of financing certain capital improvements within the City, including but not
limited to infrastructure improvements in the City’s Laurel Avenue Tax Increment Financing District.
98
REQUIRED SUPPLEMENTARY INFORMATION
99
70
CITY OF LAKE FOREST, ILLINOIS Exhibit B-1
General Fund
For the Year Ended April 30, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Taxes:
Property 17,081,233 $ 17,035,476 $ (45,757) $
Other 3,158,511 3,320,856 162,345
Intergovernmental revenues 6,485,466 6,265,533 (219,933)
Grants and contributions - 2,002 2,002
Charges for services 2,759,437 2,917,441 158,004
Licenses and permits 2,479,564 2,821,066 341,502
Fines and forfeitures 317,500 287,333 (30,167)
Investment income 55,550 70,843 15,293
Miscellaneous revenue 584,128 771,515 187,387
Total revenues 32,921,389 33,492,065 570,676
Expenditures:
Current:
General government 10,502,697 9,304,354 1,198,343
Highways and streets 2,400,408 2,371,461 28,947
Sanitation 2,260,266 2,235,135 25,131
Public safety 14,949,728 14,311,143 638,585
Capital outlay - 492,547 (492,547)
Contingency 3,199,585 - 3,199,585
Total expenditures 33,312,684 28,714,640 4,598,044
Excess (deficiency) of revenues
over expenditures (391,295) 4,777,425 5,168,720
Other financing sources (uses):
Transfers in - 57,162 57,162
Transfers out (1,942,750) (1,933,258) 9,492
Total other financing uses (1,942,750) (1,876,096) 66,654
Net change in fund balance (2,334,045) $ 2,901,329 5,235,374 $
Fund balance – beginning of year 17,614,960
Fund balance – end of year 20,516,289 $
Required Supplementary Information
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
100
71
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, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Property taxes 5,228,622 $ 5,219,476 $ (9,146) $
Intergovernmental 18,500 43,907 25,407
Grants and contributions 108,200 212,218 104,018
Charges for services 3,323,265 2,844,560 (478,705)
Investment income 28,159 17,850 (10,309)
Other 9,050 18,829 9,779
Total revenues 8,715,796 8,356,840 (358,956)
Expenditures:
Current:
Culture and recreation 8,285,764 7,855,290 430,474
Contingency 958,236 - 958,236
Capital outlay 1,055,597 610,117 445,480
Total expenditures 10,299,597 8,465,407 1,834,190
Excess (deficiency) of revenues
over expenditures (1,583,801) (108,567) 1,475,234
Other financing sources (uses):
Proceeds from sales of equipment - 719 719
285,000 285,750 750
(91,000) (166,000) (75,000)
Total other financing sources (uses)194,000 120,469 (73,531)
Net change in fund balance (1,389,801) $ 11,902 1,401,703 $
Fund balance – beginning of year 2,754,377
Fund balance – end of year 2,766,279 $
Required Supplementary Information
Transfers in
Transfers out
101
72
Exhibit B-3
CITY OF LAKE FOREST, ILLINOIS
Required Supplementary Information – GASB Statement No. 27
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):
12/31/2014 37,573,995 $ 50,319,970 $ 12,745,975 $ 74.7 %16,265,473 $ 78.4 %
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
Police Pension Plan:
04/30/2015 28,025,755 52,530,895 24,505,140 53.4 3,590,934 682.4
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
Firefighters' Pension Plan:
04/30/2015 32,257,990 43,938,314 11,680,324 73.4 3,111,216 375.4
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
(1)Includes City and Library employees. On a market value basis, the actuarial value of assets as of December 31, 2014 is
$46,897,077. On a market basis, the funded ratio would be 93.20%. 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.
102
73
Exhibit B-4
CITY OF LAKE FOREST, ILLINOIS
Required Supplementary Information – GASB Statement No. 27
Schedules of Employer Contributions
Last Six Fiscal Years
Illinois Municipal Retirement Fund
Annual
Fiscal Employer required Percentage
Year Contributions contribution contributed
4/30/15 2,120,603 $ 2,120,603 $ 100.0 %
4/30/14 2,175,340 2,175,340 100.0
4/30/13 1,895,967 1,895,967 100.0
4/30/12 1,893,946 1,893,946 100.0
4/30/11 1,944,067 1,944,067 100.0
4/30/10 667,231 667,231 100.0
Police Pension Plan
Annual
Fiscal Employer required Percentage
Year Contributions contribution contributed
4/30/15 1,706,203 $ 1,508,450 $ 113.1 %
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
Firefighters' Pension Plan
Annual
Fiscal Employer required Percentage
Year Contributions contribution contributed
4/30/15 1,168,287 $ 950,325 $ 122.9 %
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
103
74
Exhibit B-5
CITY OF LAKE FOREST, ILLINOIS
Required Supplementary Information - GASB Statement No. 45
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)
04/30/2015 -$ 3,786,380 $ 3,786,380 $ -$ %18,087,734 $ 20.93 %
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)
04/30/2015 -$ 272,766 $ 272,766 $ -$ %1,288,196 $ 21.17 %
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
04/30/2015 196,300 $ 223,399 $ 87.9 %
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
Schedule of Employer Contributions - Library
Actuarial
Valuation Employer Required Percentage
Date Contributions Contribution Contributed
04/30/2015 4,094 $ 22,915 $ 17.9 %
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.
104
75
City of Lake Forest, Illinois Exhibit B-6
Required Supplementary Information - Police Pension Plan - GASB Statement No. 67
Schedule of Changes in Net Pension Liability, Total Pension Liability and Related
Ratios and Investment Returns
Fiscal year ending April 30,2015
Total pension liability
Service cost 845,979 $
Interest on the total pension liability 3,219,893
Changes in benefit terms -
Differences between expected and actual experience 2,713
Changes in assumptions 3,568,719
Benefit payments (2,209,762)
Net change in total pension liability 5,427,542
Total pension liability—beginning 47,103,353
Total pension liability—ending (a)52,530,895 $
Plan fiduciary net position
Contributions - Employer 1,706,203 $
Contributions - Member 360,156
Pension plan net investment income 1,669,508
Benefit payments (2,193,705)
Pension plan administrative expense (4,150)
Net change in plan fiduciary net position 1,538,012
Plan fiduciary net position—beginning 26,487,743
Plan fiduciary net position—ending (b)28,025,755 $
Net pension liability - ending (a) - (b)24,505,140 $
Plan fiduciary net position as a percentage of the
total pension liability 53.35%
Covered-Employee Payroll 3,590,934 $
Employer net pension liability as a percentage of
covered-employee payroll 682.42%
Annual money-weighted rate of return, net of
investment expense 6.79%
The City implemented GASB 67 in FY 2015.
105
76
City of Lake Forest, Illinois Exhibit B-7
Required Supplementary Information - Firefighters' Pension Plan - GASB Statement No. 67
Schedule of Changes in Net Pension Liability, Total Pension Liability and Related
Ratios and Investment Returns
Fiscal year ending April 30,2015
Total pension liability
Service cost 912,154 $
Interest on the total pension liability 2,754,242
Changes in benefit terms -
Differences between expected and actual experience (213,530)
Changes in assumptions 2,024,054
Benefit payments (1,769,849)
Net change in total pension liability 3,707,071
Total pension liability—beginning 40,231,243
Total pension liability—ending (a)43,938,314 $
Plan fiduciary net position
Contributions - Employer 1,168,287 $
Contributions - Member 296,676
Pension plan net investment income 1,871,817
Benefit payments (1,769,849)
Pension plan administrative expense (4,150)
Net change in plan fiduciary net position 1,562,781
Plan fiduciary net position—beginning 30,695,209
Plan fiduciary net position—ending (b)32,257,990 $
Net pension liability - ending (a) - (b)11,680,324 $
Plan fiduciary net position as a percentage of the
total pension liability 73.42%
Covered-Employee Payroll 3,111,216 $
Employer net pension liability as a percentage of
covered-employee payroll 375.43%
Annual money-weighted rate of return, net of
investment expense 6.48%
The City implemented GASB 67 in FY 2015.
106
77
City of Lake Forest, Illinois
Required Supplementary Information - GASB Statement No. 67
Schedule of Contributions
Police Pension Plan
2015 2014 2013 2012
Actuarially Determined Contribution 1,508,450 $ 1,384,307 $ 1,375,906 $ 1,372,431 $
Contributions in Relation to the Actuarial
Determined Contribution 1,706,203 1,563,964 1,502,075 1,515,074
Contribution Deficiency (excess)(197,753) $ (179,657) $ (126,169) $ (142,643) $
Covered-Employee Payroll 3,590,934 $ 3,518,797 $ 3,170,518 $ 3,359,679 $
Contributions as a Percentage of
Covered-Employee Payroll 47.51% 44.45% 47.38% 45.10%
Firefighters' Pension Plan
2015 2014 2013 2012
Actuarially Determined Contribution 950,325 $ 894,384 $ 894,551 $ 862,452 $
Contributions in Relation to the Actuarial
Determined Contribution 1,168,287 1,090,695 1,026,345 983,298
Contribution Deficiency (excess)(217,962) $ (196,311) $ (131,794) $ (120,846) $
Covered-Employee Payroll 3,111,216 $ 3,004,889 $ 3,049,732 $ 2,941,767 $
Contributions as a Percentage of
Covered-Employee Payroll 37.55% 36.30% 33.65% 33.43%
107
78
Exhibit B-8
2011 2010 2009 2008 2007 2006
1,405,652 $ 1,128,050 $ 1,025,521 $ 917,388 $ 861,380 $ 747,004 $
1,412,730 1,128,592 1,038,121 928,718 868,271 757,462
(7,078) $ (542) $ (12,600) $ (11,330) $ (6,891) $ (10,458) $
3,322,493 $ 3,283,760 $ 3,162,441 $ 3,162,441 $ 3,041,336 $ 3,084,360 $
42.52% 34.37% 32.83% 29.37% 28.55% 24.56%
2011 2010 2009 2008 2007 2006
954,946 $ 761,978 $ 662,323 $ 608,241 $ 536,870 $ 484,776 $
960,850 810,129 701,472 610,671 554,050 512,408
(5,904) $ (48,151) $ (39,149) $ (2,430) $ (17,180) $ (27,632) $
2,644,320 $ 2,926,591 $ 2,855,889 $ 2,855,889 $ 2,626,922 $ 2,454,181 $
36.34% 27.68% 24.56% 21.38% 21.09% 20.88%
108
CITY OF LAKE FOREST, ILLINOIS
Notes to Required Supplementary Information
April 30, 2015
79
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).
Note 2. Pension Contributions
The Schedule of Contributions shows the difference between the actual contributions and the actuarially
determined contributions (ADC). The actuarial valuation and assumptions utilized to measure the ADC
differ from those disclosed within Note 9 of the Financial Statements and reflects the City’s informal
funding policy, which results in a contribution greater than the State’s statutory minimum contribution.
The following methods and assumptions were utilized to measure the ADC for each applicable pension
plan.
Police
Methods and Assumptions
Valuation date May 1, 2015
Actuarial cost method Entry Age Normal
Actuarial value of assets 5-year Average Market Value
Amortization method Level Percentage of Payroll Closed
Remaining amortization period 26 years
Investment rate of return 7%
Projected Salary Increases 5.50%
Inflation Rate Included 3.00%
Mortality Table
Fire
Methods and Assumptions
Valuation date May 1, 2015
Actuarial cost method Entry Age Normal
Actuarial value of assets 5-year Average Market Value
Amortization method Level Percentage of Payroll Closed
Remaining amortization period 26 years
Investment rate of return 7%
Projected Salary Increases 5.50%
Inflation Rate Included 3.00%
Mortality Table
RP 2000 (BCA, +1M, -4F, 2x>105), adjusted
for future mortality improvement using 1-year
setback after 15 years.
RP 2000 (BCA, +1M, -4F, 2x>105), adjusted
for future mortality improvement using 1-year
setback after 15 years.
109
COMBINING FINANCIAL STATEMENTS
AND OTHER SCHEDULES
110
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.
111
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.
Laurel / Western Redevelopment TIF Fund
The Laurel / Western Redevelopment TIF Fund accounts for tax increment revenues to be used for
improvements in the TIF district.
112
80
CITY OF LAKE FOREST, ILLINOIS
Combining Balance Sheet
Nonmajor Governmental Funds
April 30, 2015
Asset Foreign Fire Emergency Parks and
Forfeiture Insurance Telephone Public Land
Assets Fund Tax Fund Fund Fund
Cash and cash equivalents 121,658 $ 26,894 $ 103,320 $ 243,745 $
Investments - 211,007 - -
Property held for resale - - - -
Receivables (net of allowance for
uncollectibles):
Property taxes - - - -
Other 1,651 - 61,512 75,000
Total receivables 1,651 - 61,512 75,000
Due from other governments - - - -
Due from fiduciary funds - - - -
Prepaids - - - -
Total assets 123,309 $ 237,901 $ 164,832 $ 318,745 $
Liabilities
Liabilities:
Accounts payable -$ -$ 1,369 $ -$
Accrued liabilities - - - -
Due to other funds - - - -
Deposits - - - -
Total liabilities - - 1,369 -
Property tax levies intended to finance FY16 - - - -
Unavailable grants and contributions - - - 75,000
Total deferred inflows of resources - - - 75,000
Fund balances:
Nonspendable - - - -
Restricted:
Culture and recreation - - - 243,745
Highways and streets - - - -
Public safety 123,309 237,901 163,463 -
Cemetery purposes - - - -
Affordable housing - - - -
Debt service - - - -
Assigned
Capital projects - - - -
Unassigned - - - -
Total fund balances 123,309 237,901 163,463 243,745
Total liabilities, deferred inflows
of resources, and fund balances 123,309 $ 237,901 $ 164,832 $ 318,745 $
Fund Balances:
Deferred Inflows of Resources
Special Revenue Funds
113
81
Debt Service
Motor Senior Funds
Fuel General Resources Housing Debt
Tax Cemetery Commission Trust Service
Fund Fund Fund Fund Fund
270,402 $ 618,243 $ 82,739 $ 738,659 $ 1,805,602 $
- 4,148,029 - - -
- - - - -
- - - - 2,223,449
11,077 39,468 24,047 - -
11,077 39,468 24,047 - 2,223,449
45,062 - - - -
- 155,185 - - -
- 355 818 - -
326,541 $ 4,961,280 $ 107,604 $ 738,659 $ 4,029,051 $
7,277 $ 18,276 $ 13,097 $ -$ -$
- 7,265 5,713 - -
- - - - -
- - - 12,000 -
7,277 25,541 18,810 12,000 -
- - - - 2,223,449
11,077 4,500 - - -
11,077 4,500 - - 2,223,449
- 355 818 - -
- - 87,976 - -
308,187 - - - -
- - - - -
- 4,930,884 - - -
- - - 726,659 -
- - - - 1,805,602
- - - - -
- - - - -
308,187 4,931,239 88,794 726,659 1,805,602
326,541 $ 4,961,280 $ 107,604 $ 738,659 $ 4,029,051 $
(Continued)
Exhibit C-1
Special Revenue Funds
114
82
Route 60 Route 60 Laurel / Total
Bridge Intersection Western Nonmajor
Improvements Improvements Redevelopment Governmental
Assets Fund Fund TIF Fund Funds
Cash and cash equivalents 1,036,105 $ 412,631 $ -$ 5,459,998 $
Investments - - - 4,359,036
Property held for resale - - 380,000 380,000
Receivables (net of allowance for
uncollectibles):
Property taxes - - - 2,223,449
Other - - - 212,755
Total receivables - - - 2,436,204
Due from other governments - - - 45,062
Due from fiduciary funds - - - 155,185
Prepaids - - - 1,173
Total assets 1,036,105 $ 412,631 $ 380,000 $ 12,836,658 $
Liabilities and Fund Balances
Liabilities:
Accounts payable -$ -$ 5,575 $ 45,594 $
Accrued liabilities - - - 12,978
Due to other funds - - 1,016,561 1,016,561
Deposits - - - 12,000
Total liabilities - - 1,022,136 1,087,133
Property tax levies intended to finance FY16 - - - 2,223,449
Unavailable grants and contributions - - - 90,577
Total deferred inflows of resources - - - 2,314,026
Fund balances:
Nonspendable - - 380,000 381,173
Restricted:
Culture and recreation - - - 331,721
Highways and streets - - - 308,187
Public safety - - - 524,673
Cemetery purposes - - - 4,930,884
Affordable housing - - - 726,659
Debt service - - - 1,805,602
Assigned
Capital projects 1,036,105 412,631 - 1,448,736
Unassigned - - (1,022,136) (1,022,136)
Total fund balances 1,036,105 412,631 (642,136) 9,435,499
Total liabilities, deferred inflows
of resources, and fund balances 1,036,105 $ 412,631 $ 380,000 $ 12,836,658 $
Deferred Inflows of Resources
Capital Projects Funds
Exhibit C-1 (Cont.)
Combining Balance Sheet
Nonmajor Governmental Funds
April 30, 2015
CITY OF LAKE FOREST, ILLINOIS
115
83
CITY OF LAKE FOREST, ILLINOIS
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended April 30, 2015
Asset Foreign Fire Emergency Parks and
Forfeiture Insurance Telephone Public Land
Fund Tax Fund Fund Fund
Revenues:
Taxes:
Property -$ -$ -$ -$
Other - - - -
Intergovernmental revenues 14,456 - - -
Grants and contributions - - - 100,000
Charges for services 14,500 104,337 269,943 98,872
Investment income 427 72 263 904
Total revenues 29,383 104,409 270,206 199,776
Expenditures:
Current:
General government - - - -
Culture and recreation - - - -
Public safety - 79,660 78,605 -
Capital outlay 11,616 - 402,255 221,860
Debt service:
Principal - - - -
Interest - - - -
Total expenditures 11,616 79,660 480,860 221,860
Excess (deficiency) of revenues
over expenditures 17,767 24,749 (210,654) (22,084)
Proceeds from sales of capital assets 5,001 - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources
and uses 5,001 - - -
Net change in fund balances 22,768 24,749 (210,654) (22,084)
Fund balances – beginning of year 100,541 213,152 374,117 265,829
Fund balances – end of year 123,309 $ 237,901 $ 163,463 $ 243,745 $
Other financing sources (uses):
Special Revenue Funds
116
84
Exhibit C-2
Debt Service
Motor Senior Funds
Fuel General Resources Housing Debt
Tax Cemetery Commission Trust Service
Fund Fund Fund Fund Fund
-$ -$ -$ -$ 2,204,053 $
- - - 48,000 -
649,027 - - - -
49,762 12,020 187,029 - 156,176
- 848,236 177,528 - -
1,384 400,099 330 2,725 9,090
700,173 1,260,355 364,887 50,725 2,369,319
- 632,750 - 85,000 3,750
- - 601,753 - -
- - - - -
1,734,308 - - - -
- 140,000 - - 1,483,436
- 2,100 - - 1,398,509
1,734,308 774,850 601,753 85,000 2,885,695
(1,034,135) 485,505 (236,866) (34,275) (516,376)
- - - - -
- - 239,239 - 655,519
- - - - (32,415)
- - 239,239 - 623,104
(1,034,135) 485,505 2,373 (34,275) 106,728
1,342,322 4,445,734 86,421 760,934 1,698,874
308,187 $ 4,931,239 $ 88,794 $ 726,659 $ 1,805,602 $
(Continued)
Special Revenue Funds
117
85
Exhibit C-2
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended April 30, 2015
Route 60 Route 60 Laurel / Total
Bridge Intersection Western Nonmajor
Improvements Improvements Redevelopment Governmental
Fund Fund TIF Fund Funds
Revenues:
Taxes:
Property -$ -$ -$ 2,204,053 $
Other - - - 48,000
Intergovernmental revenues - - - 663,483
Grants and contributions - - - 504,987
Charges for services - - - 1,513,416
Investment income 3,885 1,569 - 420,748
Total revenues 3,885 1,569 - 5,354,687
Expenditures:
Current:
General government - 6,002 164,576 892,078
Culture and recreation - - - 601,753
Public safety - - - 158,265
Capital outlay - - 420,398 2,790,437
Debt service:
Principal - - - 1,623,436
Interest - - - 1,400,609
Total expenditures - 6,002 584,974 7,466,578
Excess (deficiency) of revenues
over expenditures 3,885 (4,433) (584,974) (2,111,891)
Other financing sources (uses):
Proceeds from sales of capital assets - - - 5,001
Transfers in - - - 894,758
Transfers out - - (57,162) (89,577)
Total other financing sources
and uses - - (57,162) 810,182
Net change in fund balances 3,885 (4,433) (642,136) (1,301,709)
Fund balances – beginning of year 1,032,220 417,064 - 10,737,208
Fund balances – end of year 1,036,105 $ 412,631 $ (642,136) $ 9,435,499 $
CITY OF LAKE FOREST, ILLINOIS
Nonmajor Governmental Funds
Capital Projects Funds
118
86
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, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Intergovernmental 10,000 $ 14,456 $ 4,456 $
Charges for services - 14,500 14,500
Investment income 380 427 47
Total revenues 10,380 29,383 19,003
Expenditures:
Current:
Contingency 9,500 - 9,500
Capital outlay 95,000 11,616 83,384
Total expenditures 104,500 11,616 92,884
Excess (deficiency) of revenues
over expenditures (94,120) 17,767 111,887
Other financing sources:
Proceeds from sales of capital assets - 5,001 5,001
Net change in fund balance (94,120) $ 22,768 116,888 $
Fund balance – beginning of year 100,541
Fund balance – end of year 123,309 $
119
87
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, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Charges for services 96,000 $ 104,337 $ 8,337 $
Investment income 300 72 (228)
Total revenues 96,300 104,409 8,109
Expenditures:
Current:
Public safety 200,000 79,660 120,340
Contingency 20,000 - 20,000
Total expenditures 220,000 79,660 140,340
Net change in fund balance (123,700) $ 24,749 148,449 $
Fund balance – beginning of year 213,152
Fund balance – end of year 237,901 $
120
88
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, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Charges for services 287,000 $ 269,943 $ (17,057) $
Investment income 600 263 (337)
Total revenues 287,600 270,206 (17,394)
Expenditures:
Current:
Public safety 282,581 78,605 203,976
Contingency 28,258 - 28,258
Capital outlay 180,000 402,255 (222,255)
Total expenditures 490,839 480,860 9,979
Net change in fund balance (203,239) $ (210,654) (7,415) $
Fund balance – beginning of year 374,117
Fund balance – end of year 163,463 $
121
89
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, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Grants and contributions 25,000 $ 100,000 $ 75,000 $
Charges for services 62,672 98,872 36,200
Investment income 1,043 904 (139)
Total revenues 88,715 199,776 111,061
Expenditures:
Current:
Contingency 23,585 - 23,585
Capital outlay 235,845 221,860 13,985
Total expenditures 259,430 221,860 37,570
Net change in fund balance (170,715) $ (22,084) 148,631 $
Fund balance – beginning of year 265,829
Fund balance – end of year 243,745 $
122
90
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, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Grants and contributions 80,000 $ 49,762 $ (30,238) $
Intergovernmental revenues 557,914 649,027 91,113
Investment income 5,978 1,384 (4,594)
Total revenues 643,892 700,173 56,281
Expenditures:
Current:
Contingency 187,537 - 187,537
Capital outlay 1,875,366 1,734,308 141,058
Total expenditures 2,062,903 1,734,308 328,595
Net change in fund balance (1,419,011) $ (1,034,135) 384,876 $
Fund balance – beginning of year 1,342,322
Fund balance – end of year 308,187 $
123
91
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, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Grants and contributions 459,444 $ 12,020 $ (447,424) $
Charges for services 634,945 848,236 213,291
Investment income 256,526 400,099 143,573
Total revenues 1,350,915 1,260,355 (90,560)
Expenditures:
Current:
General government 866,285 632,750 233,535
Contingency 100,839 - 100,839
Debt service:
Principal retirement 140,000 140,000 -
Interest 2,100 2,100 -
Total expenditures 1,109,224 774,850 334,374
Net change in fund balance 241,691 $ 485,505 243,814 $
Fund balance – beginning of year 4,445,734
Fund balance – end of year 4,931,239 $
124
92
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, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Grants and contributions 178,500 $ 187,029 $ (972) $
Charges for services 179,500 177,528 (1,972)
Investment income 600 330 (270)
Total revenues 358,600 364,887 6,287
Expenditures:
Current:
Culture and recreation 599,196 601,753 (2,557)
Contingency 59,920 - 59,920
Total expenditures 659,116 601,753 57,363
Excess (deficiency) of revenues
over expenditures (300,516) (236,866) 63,650
Other financing sources:
Transfers in 249,239 239,239 (10,000)
Net change in fund balance (51,277) $ 2,373 53,650 $
Fund balance – beginning of year 86,421
Fund balance – end of year 88,794 $
125
93
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, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Other taxes - demolition tax 48,000 $ 48,000 $ -$
Investment income 3,000 2,725 (275)
Total revenues 51,000 50,725 (275)
Expenditures:
Current:
General government 300,000 85,000 215,000
Contingency 30,000 - 30,000
Total expenditures 330,000 85,000 245,000
Net change in fund balance (279,000) $ (34,275) 244,725 $
Fund balance – beginning of year 760,934
Fund balance – end of year 726,659 $
Revenues:
126
94
Exhibit C-11
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, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Taxes
Property 2,190,116 $ 2,204,053 $ 13,937 $
Grants and contributions 168,384 156,176 (12,208)
Investment income 6,834 9,090 2,256
Total revenues 2,365,334 2,369,319 3,985
Expenditures:
Current:
General government 3,300 3,750 (450)
Debt service:
Principal 1,483,436 1,483,436 -
Interest 1,398,499 1,398,509 (10)
Total expenditures 2,885,235 2,885,695 (460)
Deficiency of revenues
over expenditures (519,901) (516,376) 3,525
Transfers in 658,511 655,519 (2,992)
Transfers out (635,133) (32,415) 602,718
Total other financing sources (uses)23,378 623,104 599,726
Net change in fund balance (496,523) $ 106,728 603,251 $
Fund balance – beginning of year 1,698,874
Fund balance – end of year 1,805,602 $
Other financing sources (uses):
127
95
Exhibit C-12
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, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Taxes:
Property 9,764 $ 9,764 $ -$
Other 1,604,224 1,272,610 (331,614)
Grants and contributions 4,269,900 231,616 (4,038,284)
Charges for services 693,008 660,556 (32,452)
Investment income 14,943 14,709 (234)
Miscellaneous revenue 5,000 - (5,000)
Total revenues 6,596,839 2,189,255 (4,407,584)
Expenditures:
Current:
General government 111,830 52,398 59,432
Contingency 888,986 - 888,986
Capital outlay 8,778,033 3,689,567 5,088,466
Total expenditures 9,778,849 3,741,965 6,036,884
Excess (deficiency) of revenues
over expenditures (3,182,010) (1,552,710) 1,629,300
Other financing sources:
Issuance of bonds 4,700,000 - (4,700,000)
Proceeds from sales of capital assets 20,000 18,333 (1,667)
Transfers in 1,385,133 782,415 (602,718)
Total other financing sources 6,105,133 800,748 (5,304,385)
Net change in fund balance 2,923,123 $ (751,962) (3,675,085) $
Fund balance – beginning of year 4,084,956
Fund balance – end of year 3,332,994 $
128
96
Exhibit C-13
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, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Investment income -$ 3,885 $ 3,885 $
Expenditures:
Current:
Contingency 103,200 - 103,200
Capital outlay 1,032,000 - 1,032,000
Total expenditures 1,135,200 - 1,135,200
Net change in fund balance (1,135,200) $ 3,885 1,139,085 $
Fund balance – beginning of year 1,032,220
Fund balance – end of year 1,036,105 $
129
97
Exhibit C-14
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, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:
Investment income -$ 1,569 $ 1,569 $
Expenditures:
Current:
Contingency 41,800 - 41,800
General government 418,000 6,002 411,998
Total expenditures 459,800 6,002 453,798
Net change in fund balance (459,800) $ (4,433) 455,367 $
Fund balance – beginning of year 417,064
Fund balance – end of year 412,631 $
130
98
Exhibit C-15
CITY OF LAKE FOREST, ILLINOIS
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Laurel/Western Redevelopment TIF Fund
For the Year Ended April 30, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Revenues:-$ -$ -$
Expenditures:
Current:
General government 200,000 164,576 35,424
Capital outlay 1,642,000 420,398 1,221,602
Total expenditures 1,842,000 584,974 1,257,026
Excess (deficiency) of revenues
over expenditures (1,842,000) (584,974) 1,257,026
Other financing uses:
Transfer out (58,000) (57,162) 838
Net change in fund balance (1,900,000) $ (642,136) 1,257,026 $
Fund balance – beginning of year -
Fund balance – end of year (642,136) $
131
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.
132
99
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, 2015
Original and Variance
Final Actual with
Appropriations Amounts Final Budget
Operating revenues:
Charges for services 8,099,871 $ 7,366,874 $ (732,997) $
Connection fees 83,500 113,965 30,465
Grants and contributions 650,000 486,101 (163,899)
Miscellaneous 8,427 67,529 59,102
Total operating revenues 8,841,798 8,034,469 (807,329)
Operating expenses:
General and administrative 2,272,068 2,079,749 192,319
Operations and maintenance 5,219,907 4,571,310 648,597
Contingency 1,132,239 - 1,132,239
Total operating expenses 8,624,214 6,651,059 1,973,155
Nonoperating revenues (expenses):
Investment income 37,379 31,542 (5,837)
Principal retirement (1,762,000) (1,762,000) -
Interest expense (448,420) (534,336) (85,916)
Total nonoperating revenues
(expenses)(2,173,041) (2,264,794) (91,753)
133
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.
134
100
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, 2015
Original and Variance
Final Actual with
Appropriations Amounts Final Budget
Operating revenues:
Charges for services 1,476,404 $ 1,414,092 $ (62,312) $
Miscellaneous - 125 125
Total operating revenues 1,476,404 1,414,217 (62,187)
Operating expenses:
General and administrative 629,445 631,238 (1,793)
Operations and maintenance 866,707 886,435 (19,728)
Contingency 160,306 - 160,306
Total operating expenses 1,656,458 1,517,673 138,785
Nonoperating revenues (expenses):
Investment income 2,600 1,866 (734)
Principal retirement (85,000) (85,000) -
Interest expense (21,910) (18,888) 3,022
Total nonoperating revenues
(expenses)(104,310) (102,022) 2,288
135
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.
136
101
Exhibit F-1
CITY OF LAKE FOREST, ILLINOIS
Combining Statement of Net Position
Internal Service Funds
April 30, 2015
Total
Self Liability Internal
Fleet Insurance Insurance Service
Assets Fund Fund Fund Funds
Current assets:
Cash and cash equivalents 373,639 $ 5,099,403 $ 619,711 $ 6,092,753 $
Other receivables 4,297 250,321 716,502 971,120
Inventories 307,378 - - 307,378
Prepaid expenses - - 623,559 623,559
Total current assets 685,314 5,349,724 1,959,772 7,994,810
Noncurrent assets:
Capital assets:
Being depreciated, net of
accumulated depreciation 23,327 - - 23,327
Total capital assets, net 23,327 - - 23,327
Total noncurrent assets 23,327 - - 23,327
Total assets 708,641 5,349,724 1,959,772 8,018,137
Liabilities
Current liabilities:
Accounts payable 31,987 298,301 28,231 358,519
Accrued liabilities 16,303 815,894 119,303 951,500
Total current liabilities 48,290 1,114,195 147,534 1,310,019
Noncurrent liabilities:
Accrued compensated absences 59,737 - - 59,737
Total liabilities 108,027 1,114,195 147,534 1,369,756
Net Position
Net investment in capital assets 23,327 - - 23,327
Unrestricted 577,287 4,235,529 1,812,238 6,625,054
Total net position 600,614 $ 4,235,529 $ 1,812,238 $ 6,648,381 $
137
102
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, 2015
Total
Self Liability Internal
Fleet Insurance Insurance Service
Fund Fund Fund Funds
Operating revenues:
Charges for services 1,927,178 $ 4,913,397 $ 2,043,858 $ 8,884,433 $
Operating expenses:
General and administrative 1,787,496 5,546,964 1,272,318 8,606,778
Depreciation and amortization 4,805 - - 4,805
Total operating expenses 1,792,301 5,546,964 1,272,318 8,611,583
Operating income (loss)134,877 (633,567) 771,540 272,850
Nonoperating revenues:
Investment income 1,152 19,177 2,639 22,968
Change in net position 136,029 (614,390) 774,179 295,818
Net position – beginning of year 464,585 4,849,919 1,038,059 6,352,563
Net position – end of year 600,614 $ 4,235,529 $ 1,812,238 $ 6,648,381 $
138
103
Exhibit F-3
CITY OF LAKE FOREST, ILLINOIS
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended April 30, 2015
Total
Self Liability Internal
Fleet Insurance Insurance Service
Fund Fund Fund Funds
Cash flows from operating activities:
Receipts from interfund services provided 1,928,256 $ 4,957,732 $ 1,327,356 $ 8,213,344 $
Payments to suppliers (1,083,119) (5,258,816) (1,320,309) (7,662,244)
Payments to employees (691,009) - - (691,009)
Net cash flows from
operating activities 154,128 (301,084) 7,047 (139,909)
Cash flows from investing activities:
Interest and dividends received 1,152 19,177 2,639 22,968
Increase (decrease) in cash and
cash equivalents 155,280 (281,907) 9,686 (116,941)
Cash and cash equivalents – beginning of year 218,359 5,381,310 610,025 6,209,694
Cash and cash equivalents – end of year 373,639 $ 5,099,403 $ 619,711 $ 6,092,753 $
Reconciliation of operating income (loss) to net
cash flows from operating activities:
Operating income (loss)134,877 $ (633,567) $ 771,540 $ 272,850 $
Adjustments to reconcile operating income
(loss) to net cash flows from
operating activities:
Depreciation expense 4,805 - - 4,805
Changes in assets and liabilities:
Accounts receivable 1,078 44,335 (716,502) (671,089)
Other assets (7,704) - (46,544) (54,248)
Accounts payable 15,503 903 (27,324) (10,918)
Accrued liabilities 2,608 287,245 25,877 315,730
Compensated absences 2,961 - - 2,961
Total adjustments 19,251 332,483 (764,493) (412,759)
Net cash flows from
operating activities 154,128 $ (301,084) $ 7,047 $ (139,909) $
139
104
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, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Operating revenues:
Charges for services 1,926,497 $ 1,927,178 $ 681 $
Operating expenses:
General and administrative 1,919,936 1,787,496 132,440
Contingency 191,994 - 191,994
Total operating expenses 2,111,930 1,787,496 324,434
Nonoperating revenues:
Investment income 750 1,152 402
140
105
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, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Operating revenues:
Charges for services 5,013,300 $ 4,913,397 $ (99,903) $
Operating expenses:
General and administrative 5,140,706 5,546,964 (406,258)
Contingency 514,071 - 514,071
Total operating expenses 5,654,777 5,546,964 107,813
Nonoperating revenues:
Investment income 25,000 19,177 (5,823)
141
106
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, 2015
Original and
Final Actual Variance with
Appropriations Amounts Final Budget
Operating revenues:
Charges for services 1,327,356 $ 2,043,858 $ 716,502 $
Operating expenses:
General and administrative 1,210,853 1,272,318 (61,465)
Contingency 121,085 - 121,085
Total operating expenses 1,331,938 1,272,318 59,620
Nonoperating revenues:
Investment income 3,200 2,639 (561)
142
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.
143
107
Exhibit G-1
CITY OF LAKE FOREST, ILLINOIS
Combining Statement of Fiduciary Net Position
Pension Trust Funds
April 30, 2015
Police Firefighters'
Pension Pension
Assets Fund Fund Total
Cash and cash equivalents 318,200 $ 543,673 $ 861,873 $
Investments:
U.S. Treasury obligations 10,276,937 3,420,773 13,697,710
U.S. Government agencies 677,096 4,194,813 4,871,909
Municipal/corporate bonds 1,103,874 5,240,465 6,344,339
Common stock 2,155,670 - 2,155,670
Equity mutual funds 12,165,721 18,757,018 30,922,739
Real Estate Investment Fund 1,274,614 - 1,274,614
Interest receivable 57,648 99,505 157,153
Prepaid expenses 7,945 10,466 18,411
Total assets 28,037,705 32,266,713 60,304,418
Liabilities
Accounts payable 11,950 8,723 20,673
Net Position
Restricted for pensions 28,025,755 $ 32,257,990 $ 60,283,745 $
144
108
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, 2015
Police Firefighters'
Pension Pension
Fund Fund Total
Additions:
Contributions:
Employer 1,706,203 $ 1,168,287 $ 2,874,490 $
Employee 360,156 296,676 656,832
Total contributions 2,066,359 1,464,963 3,531,322
Interest income 556,547 704,643 1,261,190
Net appreciation in fair value of investments 1,232,546 1,257,375 2,489,921
Less investment expenses (119,585) (90,201) (209,786)
Net investment income 1,669,508 1,871,817 3,541,325
Total additions 3,735,867 3,336,780 7,072,647
Deductions:
Pension benefits and refunds 2,193,705 1,769,849 3,963,554
Other administrative expenses 4,150 4,150 8,300
2,197,855 1,773,999 3,971,854
Change in net position 1,538,012 1,562,781 3,100,793
Restricted net position - beginning of year 26,487,743 30,695,209 57,182,952
Restricted net position - end of year 28,025,755 $ 32,257,990 $ 60,283,745 $
145
109
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, 2015
Balance,Balance,
May 1 Additions Deductions April 30
Assets
Cash and cash equivalents 60,174 $ -$ -$ 60,174 $
Liabilities
Due to special assessment districts 60,174 $ -$ -$ 60,174 $
146
110
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, 2015
Original/Final Variance with
Appropriations Actual Final Budget
Additions:
Contributions
Employer 1,700,249 $ 1,706,203 $ 5,954 $
Employee 364,000 360,156 (3,844)
Total contributions 2,064,249 2,066,359 2,110
Interest income 150,000 556,547 406,547
Net appreciation in fair value of investments - 1,232,546 1,232,546
Less investment expense (115,000) (119,585) (4,585)
Net investment income 35,000 1,669,508 1,634,508
Total additions 2,099,249 3,735,867 1,636,618
Deductions:
Pension benefits and refunds 2,113,027 2,193,705 (80,678)
Other administrative expenses 4,000 4,150 (150)
Contingency 223,203 - 223,203
Total deductions 2,340,230 2,197,855 142,375
Change in net position (240,981) $ 1,538,012 1,778,993 $
Restricted net position - beginning of year 26,487,743
Restricted net position - end of year 28,025,755 $
147
111
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, 2015
Original/Final Variance with
Appropriations Actual Final Budget
Additions:
Contributions
Employer 1,157,388 $ 1,168,287 $ 10,899 $
Employee 285,000 296,676 11,676
Total contributions 1,442,388 1,464,963 22,575
Interest income 500,000 704,643 204,643
Net appreciation in fair value of investments - 1,257,375 1,257,375
Less investment expense (81,000) (90,201) (9,201)
Net investment income 419,000 1,871,817 1,452,817
Total additions 1,861,388 3,336,780 1,475,392
Deductions:
Pension benefits and refunds 1,788,760 1,769,849 18,911
Other administrative expenses 4,000 4,150 (150)
Contingency 187,376 - 187,376
Total deductions 1,980,136 1,773,999 206,137
Change in net position (118,748) $ 1,562,781 1,681,529 $
Restricted net position - beginning of year 30,695,209
Restricted net position - end of year 32,257,990 $
148
DISCRETELY PRESENTED COMPONENT UNIT
149
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.
150
112
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, 2015
General Statement of
Assets Fund Adjustments Net Position
Cash and cash equivalents 1,917,718 $ -$ 1,917,718 $
Receivables (net of allowance for
uncollectibles):
Property taxes 3,821,301 - 3,821,301
Other taxes 6,989 - 6,989
Prepaids 28,654 - 28,654
Capital assets (net):
Capital assets not depreciated - 219,000 219,000
Capital assets depreciated (net)- 3,360,247 3,360,247
Total assets 5,774,662 $ 3,579,247 $ 9,353,909 $
Liabilities
Accounts payable 60,961 $ -$ 60,961 $
Accrued liabilities 61,282 - 61,282
Long-term obligations:
Due within one year - 30,538 30,538
Due in more than one year - 217,915 217,915
Total liabilities 122,243 248,453 370,696
Deferred Inflows of Resources
Property tax levies intended to finance FY16 3,821,301 - 3,821,301
Fund balance:
Nonspendable - prepaids 28,654 (28,654) -
Unassigned 1,802,464 (1,802,464) -
Net position:
Net investment in capital assets - 3,553,709 3,553,709
Unrestricted - 1,608,203 1,608,203
Fund Balance/Net Position:
151
113
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, 2015
Statement
General of
Fund Adjustments Activities
Revenues
Property taxes 3,793,926 $ -$ 3,793,926 $
Intergovernmental 34,833 - 34,833
Grants and contributions 190,487 - 190,487
Charges for services 23,177 - 23,177
Fines 42,364 - 42,364
Investment income 10,076 - 10,076
Total revenues 4,094,863 - 4,094,863
Expenditures/expenses
Current:
Library services:
Personnel services 2,278,155 35,838 2,313,993
Other 866,939 (64,663) 802,276
Library building:
Personnel services 147,932 1,582 149,514
Other 126,924 369,841 496,765
Capital outlay:
Building and office 93,698 (93,698) -
Capital improvements 112,739 (112,739) -
Debt service:
Principal retirement 31,749 (31,749) -
Interest 743 - 743
Total expenditures/expenses 3,658,879 104,412 3,763,291
Net change in fund balance/net position 435,984 (104,412) 331,572
Fund balance/net position – beginning of year 1,395,134 3,435,206 4,830,340
Fund balance/net position – end of year 1,831,118 $ 3,330,794 $ 5,161,912 $
152
114
Exhibit I-1
CITY OF LAKE FOREST, ILLINOIS
Summary of Debt Service Requirements to Maturity
April 30, 2015
General
Fiscal Obligation
year Bonds
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
67,396,638 $
153
115
Exhibit I-2
CITY OF LAKE FOREST, ILLINOIS
Debt Service Requirements to Maturity – General Obligation Bonds
April 30, 2015
Fiscal
Year Principal Interest Principal Interest Principal Interest
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 - - - - - -
530,000 $ 67,090 $ 141,823 $ 21,822 $ 1,134,937 $ 200,147 $
(Continued)
Special Service Area 29
Tax Bonds
Special Service Area 25 Special Service Area 26
Tax BondsTax Bonds
154
116
Exhibit I-2, Cont.
CITY OF LAKE FOREST, ILLINOIS
Debt Service Requirements to Maturity - General Obligation Bonds
April 30, 2015
Fiscal
Year Principal Interest Principal Interest Principal Interest
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
7,250,000 $ 1,859,533 $ 3,025,000 $ 938,253 $ 3,000,000 $ 2,875,000 $
(Continued)
Series 2009
Obligation Bonds Obligation BondsObligation Bonds
Series 2008 2010 Series B
155
117
Exhibit I-2, Cont.
CITY OF LAKE FOREST, ILLINOIS
Debt Service Requirements to Maturity - General Obligation Bonds
April 30, 2015
Fiscal
Year Principal Interest Principal Interest Principal Interest
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 $ 2,434,531 $ 970,000 $ 68,214 $ 20,615,000 $ 2,771,300 $
(Continued)
Obligation Bonds
2011 Series A
Obligation Bonds Obligation Bonds
2010 Series C 2011 Series B
156
118
Exhibit I-2, Conc.
CITY OF LAKE FOREST, ILLINOIS
Debt Service Requirements to Maturity - General Obligation Bonds
April 30, 2015
Total
Fiscal Requirements
Year Principal Interest Principal Interest Total
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
9,535,000 $ 4,533,988 $ 51,626,760 $ 15,769,878 $ 67,396,638 $
(Concluded)
Obligation Bonds
Series 2013
157
119
Exhibit I-3
CITY OF LAKE FOREST, ILLINOIS
Special Service Area 25 Special Tax Bonds – 2003 Series
April 30, 2015
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
2015 60,000 $
2016 60,000
2017 60,000
2018 65,000
2019 65,000
Thereafter 220,000
530,000 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
2018 65,000 7,932 72,932 2019 3,966 2019 3,966
Thereafter 220,000 12,838 232,838 Thereafter 6,419 Thereafter 6,419
530,000 $ 67,090 $ 597,090 $
Coupons due on
158
120
Exhibit I-4
CITY OF LAKE FOREST, ILLINOIS
Special Service Area 26 Special Tax Bonds – 2003 Series
April 30, 2015
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
2015 15,117 $
2016 15,767
2017 16,461
2018 17,202
2019 17,993
Thereafter 59,283
141,823 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
2018 17,993 2,563 20,556 2019 1,282 2019 1,281
Thereafter 59,283 4,056 63,339 Thereafter 2,028 Thereafter 2,028
141,823 $ 21,822 $ 163,645 $
Coupons due on
159
121
Exhibit I-5
CITY OF LAKE FOREST, ILLINOIS
Special Service Area 29 Special Tax Bonds – 2004 Series
April 30, 2015
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
2015 105,101 $
2016 109,569
2017 114,335
2018 119,423
2019 124,857
Thereafter 561,652
1,134,937 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
2018 124,857 23,213 148,070 2019 11,607 2019 11,606
Thereafter 561,652 50,259 611,911 Thereafter 25,130 Thereafter 25,129
1,134,937 $ 200,147 $ 1,335,084 $
Coupons due on
160
122
Exhibit I-6
CITY OF LAKE FOREST, ILLINOIS
General Obligation Bonds – 2008 Series
April 30, 2015
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
2015 565,000 $
2016 580,000
2017 600,000
2018 615,000
2019 635,000
Thereafter 4,255,000
7,250,000 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
2018 635,000 180,225 815,225 2019 90,113 2019 90,112
Thereafter 4,255,000 753,339 5,008,339 Thereafter 376,670 Thereafter 376,669
7,250,000 $ 1,859,533 $ 9,109,533 $
Coupons due on
161
123
Exhibit I-7
CITY OF LAKE FOREST, ILLINOIS
General Obligation Bonds – 2009 Series
April 30, 2015
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
2015 170,000 $
2016 175,000
2017 180,000
2018 185,000
2019 190,000
Thereafter 2,125,000
3,025,000 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
2018 190,000 88,195 278,195 2019 44,098 2019 44,097
Thereafter 2,125,000 449,003 2,574,003 Thereafter 224,502 Thereafter 224,501
3,025,000 $ 938,253 $ 3,963,253 $
Coupons due on
162
124
Exhibit I-8
CITY OF LAKE FOREST, ILLINOIS
General Obligation Bonds – 2010 Series B
April 30, 2015
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
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
2018 - 172,500 172,500 2019 86,250 2019 86,250
Thereafter 3,000,000 2,012,500 5,012,500 Thereafter 1,006,250 Thereafter 1,006,250
3,000,000 $ 2,875,000 $ 5,875,000 $
Coupons due on
163
125
Exhibit I-9
CITY OF LAKE FOREST, ILLINOIS
General Obligation Bonds – 2010 Series C
April 30, 2015
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
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
2018 215,000 227,099 442,099 2019 113,550 2019 113,549
Thereafter 4,280,000 1,217,737 5,497,737 Thereafter 608,869 Thereafter 608,868
5,425,000 $ 2,434,531 $ 7,859,531 $
Coupons due on
164
126
Exhibit I-10
CITY OF LAKE FOREST, ILLINOIS
General Obligation Bonds – 2011 Series A
April 30, 2015
Date of issue:September 6, 2011
Date of maturity:December 15, 2020
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
2015 325,000 $
2016 120,000
2017 125,000
2018 130,000
2019 130,000
Thereafter 140,000
970,000 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
2018 130,000 7,050 137,050 2019 3,525 2019 3,525
Thereafter 140,000 3,150 143,150 Thereafter 1,575 Thereafter 1,575
970,000 $ 68,214 $ 1,038,214 $
Coupons due on
165
127
Exhibit I-11
CITY OF LAKE FOREST, ILLINOIS
General Obligation Bonds – 2011 Series B
April 30, 2015
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
2015 1,955,000 $
2016 2,215,000
2017 2,270,000
2018 2,300,000
2019 2,400,000
Thereafter 9,475,000
20,615,000 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
2018 2,400,000 319,250 2,719,250 2019 159,625 2019 159,625
Thereafter 9,475,000 647,100 10,122,100 Thereafter 323,550 Thereafter 323,550
20,615,000 $ 2,771,300 $ 23,386,300 $
Coupons due on
166
128
Exhibit I-12
CITY OF LAKE FOREST, ILLINOIS
General Obligation Bonds – Series 2013
April 30, 2015
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
2015 -$
2016 -
2017 100,000
2018 200,000
2019 350,000
Thereafter 8,885,000
9,535,000 $
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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 166,882 2018 166,881
2018 350,000 329,763 679,763 2019 164,882 2019 164,881
Thereafter 8,885,000 2,863,173 11,748,173 Thereafter 1,431,587 Thereafter 1,431,586
9,535,000 $ 4,533,988 $ 14,068,988 $
Coupons due on
167
129
CITY OF LAKE FOREST, ILLINOIS
Debt Service Fund
Combining Balance Sheet
April 30, 2015
2003 Special Service Special Service
Series D Area 25 Area 26
General General General
Obligation Obligation Obligation
Bonds Bonds Bonds
Cash and cash equivalents 610,057 $ 11,990 $ 2,265 $
Receivables (net of allowance
for uncollectibles):
Property taxes - 72,964 19,787
Total assets 610,057 $ 84,954 $ 22,052 $
Property tax levies intended to finance FY16 -$ 72,964 $ 19,787 $
Fund balance – restricted for
debt service 610,057 11,990 2,265
Total deferred inflows of resources and fund balance 610,057 $ 84,954 $ 22,052 $
Fund Balance
Assets
Deferred Inflows of Resources
168
130
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
1,742 $ 996,583 $ 156,424 $ 17,244 $ -$ 9,297 $ 1,805,602 $
139,715 - 821,396 275,023 560,529 334,035 2,223,449
141,457 $ 996,583 $ 977,820 $ 292,267 $ 560,529 $ 343,332 $ 4,029,051 $
139,715 $ -$ 821,396 $ 275,023 $ 560,529 $ 334,035 $ 2,223,449 $
1,742 996,583 156,424 17,244 - 9,297 1,805,602
141,457 $ 996,583 $ 977,820 $ 292,267 $ 560,529 $ 343,332 $ 4,029,051 $
169
131
CITY OF LAKE FOREST, ILLINOIS
Debt Service Fund
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance
Year ended April 30, 2015
2003 Special Service Special Service
Series D Area 25 Area 26
General General General
Obligation Obligation Obligation
Bonds Bonds Bonds
Revenues:
Taxes:
Property taxes -$ 70,204 $ 19,870 $
Grants and contributions - IRS rebate - - -
Investment income 2,451 130 31
Total revenues 2,451 70,334 19,901
Expenditures:
General government 500 - -
Debt service:
Principal 200,000 55,000 14,522
Interest 5,925 14,703 4,858
Total expenditures 206,425 69,703 19,380
Excess (deficiency) of revenues
over expenditures (203,974) 631 521
Other financing sources:
Transfers in 275,296 - -
Transfers out (32,415) - -
Total other financing sources (uses)242,881 - -
Net change in fund balance 38,907 631 521
Fund balance – beginning of year 571,150 11,359 1,744
Fund balance – end of year 610,057 $ 11,990 $ 2,265 $
170
132
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
140,333 $ -$ 834,714 $ 281,590 $ 266,505 $ 590,837 $ 2,204,053 $
- - - - 156,176 - 156,176
165 3,835 1,501 359 189 429 9,090
140,498 3,835 836,215 281,949 422,870 591,266 2,369,319
- 500 500 500 1,000 750 3,750
100,914 213,000 550,000 170,000 - 180,000 1,483,436
38,916 106,010 279,206 109,845 431,811 407,235 1,398,509
139,830 319,510 829,706 280,345 432,811 587,985 2,885,695
668 (315,675) 6,509 1,604 (9,941) 3,281 (516,376)
- 380,171 - - 52 - 655,519
- - - - - - (32,415)
- 380,171 - - 52 - 623,104
668 64,496 6,509 1,604 (9,889) 3,281 106,728
1,074 932,087 149,915 15,640 9,889 6,016 1,698,874
1,742 $ 996,583 $ 156,424 $ 17,244 $ -$ 9,297 $ 1,805,602 $
171
STATISTICAL SECTION
(Unaudited)
172
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 133-141
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 142-149
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 150-154
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 155-157
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 158-161
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.
173
133
CITY OF LAKE FOREST, ILLINOIS
Net Position by Component
Last Ten Fiscal Years
2006 2007 2008 2009
Governmental Activities
Net investment in capital assets 166,151,385$ 163,863,237$ 172,325,675$ 193,768,992$
Restricted 3,568,910 4,010,519 3,978,855 3,319,974
Unrestricted 16,476,341 26,409,165 28,748,888 25,867,536
Total Governmental Activities 186,196,636$ 194,282,921$ 205,053,418$ 222,956,502$
Business-type Activities
Net investment in capital assets 43,183,127$ 44,504,668$ 44,932,466$ 37,184,702$
Restricted - - - -
Unrestricted 11,105,554 11,824,329 12,087,202 9,577,076
Total Business-type Activities 54,288,681$ 56,328,997$ 57,019,668$ 46,761,778$
Total
Net investment in capital assets 209,334,512$ 208,367,905$ 217,258,141$ 230,953,694$
Restricted 3,568,910 4,010,519 3,978,855 3,319,974
Unrestricted 27,581,895 38,233,494 40,836,090 35,444,612
Total Primary Government 240,485,317$ 250,611,918$ 262,073,086$ 269,718,280$
Data Source
Audited Financial Statements
Fiscal Year
174
134
Table 1
2010 2011 2012 2013 2014 2015
193,225,047$ 192,568,460$ 190,779,593$ 187,500,531$ 184,270,349$ 181,056,601$
3,001,515 3,645,693 16,599,487 16,064,099 16,860,362 15,737,797
25,090,240 29,683,545 19,550,532 21,126,818 23,689,130 26,747,317
221,316,802$ 225,897,698$ 226,929,612$ 224,691,448$ 224,819,841$ 223,541,715$
38,075,853$ 37,709,887$ 36,753,670$ 36,077,752$ 36,163,443$ 36,617,378$
- - - - - -
8,617,858 8,513,924 8,918,142 9,880,856 9,739,336 8,941,920
46,693,711$ 46,223,811$ 45,671,812$ 45,958,608$ 45,902,779$ 45,559,298$
231,300,900$ 230,278,347$ 227,533,263$ 223,578,283$ 220,433,792$ 217,673,979$
3,001,515 3,645,693 16,599,487 16,064,099 16,860,362 15,737,797
33,708,098 38,197,469 28,468,674 31,007,674 33,428,466 35,689,237
268,010,513$ 272,121,509$ 272,601,424$ 270,650,056$ 270,722,620$ 269,101,013$
Fiscal Year
175
135
CITY OF LAKE FOREST, ILLINOIS
Changes in Net Position
Last Ten Fiscal Years
2006 2007 2008 2009
Expenses
Governmental Activities
General Government 10,621,820 $ 10,026,323 $ 11,035,000 $ 14,928,550 $
Highways and Streets 6,195,805 7,102,425 8,821,953 7,911,604
Sanitation 2,053,718 2,225,808 2,310,966 2,169,302
Culture and recreation 8,450,431 9,403,755 8,812,293 9,430,847
Public safety 11,081,841 11,557,020 12,348,729 12,623,300
Public improvements and other - - - -
Interest 1,218,802 968,963 808,253 978,029
Total Governmental Activities Expenses 39,622,417 41,284,294 44,137,194 48,041,632
Business-type Activities
Waterworks and sewerage 7,347,680 7,891,031 8,228,975 7,659,138
Golf 1,411,572 1,545,070 1,562,520 1,490,115
Paid Parking 684,855 767,413 757,200 -
Total Business-type Activities Expenses 9,444,107 10,203,514 10,548,695 9,149,253
Total Primary Government Expenses 49,066,524 $ 51,487,808 $ 54,685,889 $ 57,190,885 $
Program Revenues
Governmental Activities
Charges for Services
General Government 6,022,462 $ 5,094,588 $ 5,249,766 $ 4,980,144 $
Highways and Streets 145,245 1,576,654 929,199 1,239,586
Sanitation 189,943 293,410 295,658 192,848
Culture and recreation 4,273,157 5,458,842 3,831,855 4,197,023
Public safety 1,357,067 1,387,792 1,567,944 1,589,647
Operating Grants and Contributions 1,407,815 1,284,897 790,979 684,872
Capital Grants and Contributions 1,657,563 - 5,301,494 9,033,429
Total Governmental Activities Program Revenues 15,053,252 15,096,183 17,966,895 21,917,549
Business-type Activities
Charges for Services
Waterworks and sewerage 7,668,972 6,944,190 6,893,939 6,589,780
Golf 1,373,637 1,702,287 1,430,875 1,413,732
Paid Parking 781,213 1,007,654 1,016,991 -
Operating Grants and Contributions - 217,249 - -
Capital Grants and Contributions 154,966 854,027 1,367,797 829,447
Total Business-type Activities
Program Revenues 9,978,788 10,725,407 10,709,602 8,832,959
Total Primary Government Program Revenues 25,032,040 $ 25,821,590 $ 28,676,497 $ 30,750,508 $
Net (Expense) Revenue
Governmental Activities (24,569,165) $ (26,188,111) $ (26,170,299) $ (26,124,083) $
Business-type Activities 534,681 521,893 160,907 (316,294)
Total Primary Government Net (Expense) Revenue (24,034,484) $ (25,666,218) $ (26,009,392) $ (26,440,377) $
Fiscal Year
176
136
Table 2
2010 2011 2012 2013 2014 2015
13,974,412 $ 13,321,852 $ 12,080,189 $ 16,176,326 $ 12,311,198 $ 12,604,331 $
9,469,570 8,687,404 8,304,860 7,536,444 7,762,403 8,839,231
2,183,373 2,349,916 2,568,820 2,512,559 2,586,125 2,474,355
9,589,857 9,402,752 9,469,832 10,352,252 10,397,593 10,172,391
13,116,738 13,398,718 13,583,116 13,748,855 14,430,151 15,303,399
- - - - - -
1,097,805 1,424,317 1,420,087 1,362,715 1,333,267 1,357,552
49,431,755 48,584,959 47,426,904 51,689,151 48,820,737 50,751,259
7,882,904 8,008,372 7,985,394 8,287,297 7,476,752 8,353,825
1,345,437 1,393,869 1,371,380 1,459,394 1,554,678 1,642,121
- - - - - -
9,228,341 9,402,241 9,356,774 9,746,691 9,031,430 9,995,946
58,660,096 $ 57,987,200 $ 56,783,678 $ 61,435,842 $ 57,852,167 $ 60,747,205 $
4,822,344 $ 4,455,844 $ 4,771,863 $ 4,838,151 $ 4,756,948 $ 5,442,475 $
809,661 693,029 846,366 753,487 741,334 710,795
104,158 171,030 81,577 58,564 77,147 682,062
4,121,592 3,650,467 3,392,303 3,342,913 3,314,856 3,156,699
1,540,927 1,930,715 1,678,032 1,861,619 1,950,998 1,795,521
1,413,819 846,781 1,433,791 1,777,734 1,105,191 1,345,670
925,524 5,982,721 360,407 25,000 757,239 468,255
13,738,025 17,730,587 12,564,339 12,657,468 12,703,713 13,601,477
7,048,854 7,344,740 7,477,637 8,598,079 7,521,323 8,034,469
1,333,879 1,264,624 1,238,016 1,320,455 1,397,836 1,414,217
- - - - - -
- - - - - -
97,724 162,051 - - - -
8,480,457 8,771,415 8,715,653 9,918,534 8,919,159 9,448,686
22,218,482 $ 26,502,002 $ 21,279,992 $ 22,576,002 $ 21,622,872 $ 23,050,163 $
(35,693,730) $ (30,854,372) $ (34,862,565) $ (39,031,683) $ (36,117,024) $ (37,149,782) $
(747,884) (630,826) (641,121) 171,843 (112,271) (547,260)
(36,441,614) $ (31,485,198) $ (35,503,686) $ (38,859,840) $ (36,229,295) $ (37,697,042) $
Fiscal Year
177
137
CITY OF LAKE FOREST, ILLINOIS
Changes in Net Position (Continued)
Last Ten Fiscal Years
2006 2007 2008 2009
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property taxes 20,858,317$ 21,287,422$ 22,324,863$ 23,067,216$
Sales 3,058,396 3,271,452 3,118,339 3,010,457
Income and Use 1,826,030 1,989,187 2,175,196 2,018,177
Telecommunications and Utility 4,434,227 4,198,439 4,454,442 4,407,235
Real Estate Transfer Tax - 1,259,295 1,984,052 962,840
Other 356,466 463,689 489,018 391,347
Investment Earnings 1,434,500 1,991,995 1,771,629 35,853
Gain on sale of capital assets - - - -
Miscellaneous - 805,436 627,188 22,729
Transfers - (992,519) (3,931) 10,111,313
Total Governmental Activities 31,967,936 34,274,396 36,940,796 44,027,167
Business-type Activities
Investment Earnings 434,378 525,904 525,833 169,717
Other - - - -
Transfers - 992,519 3,931 (10,111,313)
Total Business-type Activities 434,378 1,518,423 529,764 (9,941,596)
Total Primary Government 32,402,314$ 35,792,819$ 37,470,560$ 34,085,571$
Change in Net Position
Governmental Activities 7,398,771$ 8,086,285$ 10,770,497$ 17,903,084$
Business-type Activities 969,059 2,040,316 690,671 (10,257,890)
Total Primary Government Change in Net Position 8,367,830$ 10,126,601$ 11,461,168$ 7,645,194$
Data Source
Audited Financial Statements
Fiscal Year
* Starting in 2015, all taxes administered by the State and disbursed to the City are reported as Intergovernmental revenues on the face of
the financial statements. They have been grouped by tax type for comparison purposes above.
178
138
Table 2
2010 2011 2012 2013 2014 2015
24,383,716$ 24,739,956$ 25,428,378$ 25,051,411$ 23,744,650$ 24,468,769$
2,392,497 2,554,772 2,577,304 3,183,479 3,047,529 2,851,103
1,762,425 1,849,046 1,938,686 2,131,711 2,182,325 2,386,567
3,967,398 3,968,072 3,981,548 3,736,586 4,026,972 3,954,001
878,925 1,279,935 1,215,407 1,209,113 1,633,580 1,224,610
372,640 422,080 492,746 493,418 581,443 534,625
852,245 573,508 264,432 491,196 637,193 547,118
- - - - - -
60,000 150,049 33,724 573,705 669,145 73,613
(615,816) (102,150) (37,746) (77,100) (97,000) (168,750)
34,054,030 35,435,268 35,894,479 36,793,519 36,425,837 35,871,656
64,001 58,776 51,376 37,853 38,550 33,408
- - - - - 1,621
615,816 102,150 37,746 77,100 97,000 168,750
679,817 160,926 89,122 114,953 135,550 203,779
34,733,847$ 35,596,194$ 35,983,601$ 36,908,472$ 36,561,387$ 36,075,435$
(1,639,700)$ 4,580,896$ 1,031,914$ (2,238,164)$ 308,813$ (1,278,126)$
(68,067) (469,900) (551,999) 286,796 23,279 (343,481)
(1,707,767)$ 4,110,996$ 479,915$ (1,951,368)$ 332,092$ (1,621,607)$
Fiscal Year
179
139
CITY OF LAKE FOREST, ILLINOIS Table 3
Fund Balances of Governmental Funds
Last Ten Fiscal Years
2006 2007 2008 2009 2010 2011 2012* 2013 2014 2015
General Fund
Nonspendable 2,159,403$ 2,775,449$ 2,126,990$ 1,648,832$
Restricted 957,420 957,420 957,420 957,420
Unassigned 10,601,190 11,020,723 14,530,550 17,910,037
Reserved 510,960$ 470,008$ 1,041,187$ 2,218,570$ 1,071,068$ 2,988,884$
Unreserved 6,506,164 8,534,147 9,585,445 8,618,251 9,815,220 9,239,135
Total General Fund 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$ 20,516,289$
All Other Governmental Funds
Nonspendable 43,333$ 43,333$ -$ 381,173$
Restricted 16,171,794 15,605,203 16,127,257 14,726,999
Assigned 1,591,600 1,598,819 1,449,284 1,448,736
Unassigned - - - (1,022,136)
Reserved
Special Revenue Funds 121,299$ 89,809$ 130,173$ 128,516$ 43,306$ 4,333$
Capital Project Funds - - - - - -
Debt Service Funds 2,381,564 2,849,336 2,708,268 2,632,215 2,839,264 2,808,826
Unreserved, reported in
Special Revenue Funds 5,531,312 8,006,257 8,063,766 6,747,544 8,209,263 9,869,178
Capital Project Funds 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
Funds 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$ 15,534,772$
Total All Governmental 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$ 36,051,061$
Data Source
Audited Financial Statements
* The City implemented GASB Statement #54 in FY 2012.
Fiscal Year
180
140
CITY OF LAKE FOREST, ILLINOIS Table 4
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015*
Revenues
Property taxes 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 $ 24,468,769 $
Other taxes 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 4,641,466
Intergovernmental revenues 1,407,815 948,449 790,979 684,872 1,304,368 523,185 589,960 612,357 576,125 6,972,923
Grants and contributions - - - - 706,250 1,306,195 1,039,737 1,190,377 962,249 950,823
Charges for services 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 7,935,973
Licenses and permits 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 2,821,066
Fines and forfeitures 461,909 357,556 469,208 387,629 372,924 409,539 372,607 368,941 297,005 287,333
Investment income 1,358,266 1,866,217 1,673,038 (11,695) 815,520 531,666 225,225 462,579 610,601 524,150
Miscellaneous revenue 1,419,807 2,890,358 1,870,927 1,420,815 1,374,476 1,074,576 730,813 1,225,082 759,384 790,344
Total Revenues 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 49,392,847
Expenditures
General government 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 10,248,830
Highways and streets 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 2,371,461
Sanitation 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 2,235,135
Culture and recreation 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 8,457,043
Public safety 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 14,469,408
Capital outlay 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 7,582,668
Debt Service
Principal 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 1,623,436
Interest 982,744 881,087 781,529 694,355 1,173,967 1,284,755 1,667,372 1,392,342 1,319,276 1,400,609
Bond issuance costs - - - - - - - - - -
Total Expenditures 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 48,388,590
Excess of Revenues over (under)
Expenditures (5,275,382) 5,256,642 (136,515) (24,206,582) (7,116,863) (13,384,424) 386,900 488,758 2,420,423 1,004,257
(Continued)
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Year
* Starting in 2015, all taxes administered by the State and disbursed to the City are reported as
Intergovernmental revenues on the face of the financial statements.
181
141
CITY OF LAKE FOREST, ILLINOIS Table 4
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Other financing Sources (Uses)
Transfers in 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 $ 2,020,085 $
Transfers out (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) (2,188,835)
Bonds issued - - 9,750,000 - 3,680,000 18,090,000 - - - -
Installment note proceeds - - - 10,700,000 2,300,000 - - - - -
Loan proceeds - - - - - - - - - -
Premium (discount) on bonds
issued - - (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 assets 210,000 1,484,722 773,034 75,000 - 1,067,630 34,055 64,549 791,038 24,053
Total Other Financing Sources (Uses)210,000 492,203 10,632,317 11,745,425 5,383,235 19,334,610 38,112 (12,551) 770,131 (144,697)
Net Change in Fund Balances (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 $ 859,560 $
Debt Service as a Percentage of
Noncapital Expenditures 16.02%14.61%12.60%8.08% 8.62% 8.62% 8.31% 5.85% 6.17% 6.43%
Data Source
Audited Financial Statements
Changes in Fund Balances of Governmental Funds (Continued)
Last Ten Fiscal Years
Fiscal Year
182
142
CITY OF LAKE FOREST, ILLINOIS Table 5
Assessed Value and Actual Value of Taxable Property
Last Ten Levy Years
Total Estimated Estimated
Tax Total Taxable Direct Actual Actual
Levy Residential Commercial Industrial Other Increment Assessed Tax Taxable Taxable
Year Property Property Property Property Financing Value Rate Value Value
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%
2014 2,047,998,906 196,562,054 61,541 5,846,135 - 2,250,468,636 1.2741 6,751,405,908 33.333%
Data Source
Office of the County Clerk
Note : 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 2012
183
143
CITY OF LAKE FOREST, ILLINOIS Table 6
Based on Shields Township
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Bonds 0.095 0.088 0.083 0.086 0.090 0.096 0.068 0.071 0.088 0.090
Corporate 0.461 0.449 0.443 0.449 0.405 0.446 0.483 0.544 0.580 0.590
Firemens' Pension 0.023 0.023 0.025 0.028 0.034 0.037 0.041 0.046 0.052 0.054
IMRF 0.055 0.052 0.051 0.052 0.054 0.059 0.032 0.035 0.037 0.038
Library 0.105 0.102 0.101 0.101 0.105 0.116 0.126 0.141 0.152 0.155
Library Sites & Building 0.013 0.012 0.011 0.013 0.013 0.014 0.015 0.016 0.017 0.017
Parks/Park Maintenance 0.000 0.000 0.052 0.050 0.097 0.106 0.114 0.123 0.191 0.194
Playground & Recreation**0.112 0.098 0.038 0.042 0.043 0.046 0.050 0.055 0.000 0.000
Police Pension 0.036 0.035 0.037 0.039 0.050 0.057 0.060 0.066 0.076 0.080
Recreation for Handicapped Rec.0.011 0.010 0.010 0.010 0.011 0.013 0.014 0.016 0.018 0.018
Social Security 0.032 0.035 0.037 0.038
City Direct Rates *0.911 0.869 0.851 0.870 0.902 0.990 1.035 1.148 1.248 1.274
Overlapping Rates
College of Lake County 0.197 0.195 0.192 0.196 0.200 0.218 0.240 0.272 0.296 0.306
County of Lake 0.454 0.450 0.444 0.453 0.464 0.505 0.554 0.608 0.663 0.682
Lake County Forest Preserve 0.210 0.204 0.201 0.199 0.200 0.198 0.201 0.212 0.218 0.210
North Shore Sanitary District 0.132 0.125 0.120 0.121 0.124 0.136 0.150 0.150 0.164 0.169
School District 67, Elem.1.013 0.964 0.944 0.965 0.998 1.095 1.186 1.322 1.424 1.452
School District 115, High School 0.965 0.961 0.959 1.001 1.069 1.101 1.191 1.322 1.420 1.450
Township 0.051 0.050 0.050 0.050 0.048 0.039 0.043 0.036 0.037 0.039
Township Road and Bridge 0.018 0.020 0.016 0.019 0.020 0.023 0.026 0.029 0.032 0.033
Total tax rate 3.951 3.838 3.777 3.874 4.025 4.305 4.626 5.099 5.502 5.615
City's share of total tax rate 23% 23% 23% 22% 22% 23% 22% 23% 23% 23%
Data Source
Office of the County Clerk - Shields Township
Lake Forest lies within five townships - Moraine, Shields, Vernon, West Deerfield and Libertyville. Therefore, the tax rates for support of the Township government and for the
Township 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 and
parts 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 2013
Property Tax Rates - Direct and Overlapping Governments
Last Ten Levy Years
184
144
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 18,271,271$ 1 0.81% 9,658,854$ 4 0.40%
Lake Products Inc.13,923,091 2 0.62%
The Presbyterian Home 12,468,495 3 0.55% 24,109,831 1 1.00%
CBIZ Property Tax Solutions 8,975,933 4 0.40% 12,586,098 2 0.50%
Trustmark Insurance Co 7,543,799 5 0.33% 8,387,119 5 0.30%
Northwestern Lake Forest Hospital 7,253,328 6 0.32% 7,427,522 6 0.30%
Lake Forest Landmark Co. LLC 6,707,780 7 0.30% 6,974,752 7 0.30%
Lake Forest Landmark II 5,712,030 8 0.25%
Riggs & Co 5,217,669 9 0.23%
STRS L3 ACQ2 LLC 5,216,186 10 0.23%
Tap Holdings Inc.10,242,144 3 0.40%
James Altounian 5,388,808 9 0.20%
Red Fox LLC 5,698,708 8 0.20%
Shawgate- Broadacre 5,202,449 10 0.20%
91,289,582$ 4.05% 95,676,285$ 3.80%
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.
2015 Column is 2014 Assessed Valuation
2006 Column is 2005 Assessed Valuation
Principal Property Taxpayers
Current Year and Ten Years Ago
2015 2006
185
145
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
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 28,002,008 99.57% 14,464 28,016,472 99.62%
2014 28,673,693 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
186
146
CITY OF LAKE FOREST, ILLINOIS Table 9
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
General 0.461 0.449 0.443 0.449 0.405 0.446 0.483 0.544 0.580 0.590
0.055 0.052 0.051 0.052 0.054 0.059 0.064 0.070 0.074 0.076
Firefighter Pension 0.023 0.023 0.025 0.028 0.034 0.037 0.041 0.046 0.052 0.054
Police Pension 0.036 0.035 0.037 0.039 0.050 0.057 0.060 0.066 0.076 0.080
Parks and Recreation 0.112 0.098 0.090 0.092 0.140 0.152 0.164 0.178 0.191 0.194
Special Recreation 0.011 0.010 0.010 0.010 0.011 0.013 0.014 0.016 0.018 0.018
General Obligation Bond 1998 B 0.026 0.024 0.023 - - - - - - -
General Obligation Bond 2000 0.020 0.025 0.023 0.023 0.023 0.025 - - - -
General Obligation Bond 2001 B 0.005 0.005 0.004 0.004 0.004 0.004 - - - -
General Obligation Bond 2002 B 0.031 - - - - - - - - -
General Obligation Bond 2003 A 0.013 0.034 0.033 0.035 0.036 - - - - -
General Obligation Bond 2008 - - - 0.024 0.022 0.032 0.034 0.036 0.037 0.037
General Obligation Bond 2009 - - - - 0.005 0.011 0.011 0.012 0.013 0.013
General Obligation Bond 2010 0.000 0.020 0.023 0.023 0.012 0.025
General Obligation Bond 2013 - - - - 0.000 0.000 0.000 0.000 0.026 0.015
Total tax rate 0.793 0.755 0.739 0.756 0.784 0.856 0.894 0.991 1.079 1.102
Data Source
Office 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 Security
Tax Extensions for City Funds
Last Ten Levy Years
187
147
CITY OF LAKE FOREST, ILLINOIS Table 10
Sales Tax Base and Number of Principal Payers
Taxable Sales by Category - .5% Sales Tax
Last Ten Calendar Years
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
General Merchandise 22,694$ 33,206$ 26,184$ 2,194$ 8,492$ 8,460$ 36,478$ 12,219$ 9,722$ 7,005$
Food 88,675 89,536 89,969 97,870 83,567 89,338 90,613 91,999 93,952 105,771
Drinking and Eating Places 124,221 129,149 139,291 147,973 127,679 133,028 140,639 155,188 165,386 180,023
Apparel 68,594 63,083 60,423 54,674 55,300 51,968 53,727 64,317 68,135 68,291
Furniture & H.H. & Radio 57,206 57,996 58,530 51,881 42,526 38,958 10,187 37,536 38,821 39,494
Lumber, Building, Hardware 46,974 38,373 30,834 5,765 20,405 19,010 (6,528) 6,867 9,862 -
Automobile and Filling Stations 45,494 48,129 44,478 37,349 27,399 35,443 38,209 38,900 37,025 34,895
Drugs and Miscellaneous Retail 123,674 113,558 116,910 117,787 178,470 91,397 105,512 81,022 110,554 117,262
Agriculture and All Others 102,164 91,488 96,048 100,902 88,052 94,649 97,776 110,446 121,651 105,139
Manufacturers 64,286 88,889 102,914 109,291 21,860 14,322 (4,963) - - 7,095
Censored categories - - - 29,005 - - - - - -
Total 743,982$ 753,407$ 765,581$ 754,691$ 653,750$ 576,573$ 561,650$ 598,494$ 655,108$ 664,975$
Total Number of Payers N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
City direct sales tax rate 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Data Source
Illinois Department of Revenue
Note: Blank categories have less than 4 taxpayers, therefore no data is shown to protect the confidentiality of individual taxpayers.
Effective July 2003, an additional .5% non home rule sales tax was collected.
The City of Lake Forest became a home rule community in November 2004.
188
148
CITY OF LAKE FOREST, ILLINOIS Table 11
Sales Tax Base and Number of Principal Payers
Taxable Sales by Category - 1% Sales Tax
Last Ten Calendar Years
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
General Merchandise 45,778$ 67,042$ 52,664$ 21,504$ 16,984$ 17,248$ 72,955$ 24,726$ 19,656$ 14,010$
Food 621,140 621,566 635,560 629,087 562,455 570,803 579,914 585,517 593,446 673,803
Drinking and Eating Places 252,171 261,151 285,968 302,523 260,953 271,753 286,472 317,291 338,382 364,221
Apparel 137,422 126,196 124,644 109,349 110,600 103,935 107,453 128,633 136,270 136,582
Furniture & H.H. & Radio 114,945 115,995 117,060 103,763 85,052 77,915 20,373 75,071 77,642 78,988
Lumber, Building, Hardware 94,007 76,746 61,668 52,445 40,810 38,019 (13,037) 13,742 19,724 -
Automobile and Filling Stations 165,396 167,847 165,896 130,459 109,080 150,101 138,744 146,865 241,339 178,178
Drugs and Miscellaneous Retail 434,170 425,144 441,773 438,917 546,202 322,376 371,420 400,096 433,159 430,482
Agriculture and All Others 219,086 200,515 208,076 219,358 198,803 267,227 254,225 274,807 285,401 255,189
Manufacturers 129,053 347,340 205,978 218,715 43,909 28,947 (9,729) - - 14,415
Total 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$ 2,145,868$
Total Number of Payers 737 837 849 843 663 647 637 637 673 668
City direct sales tax rate 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Data Source
Illinois Department of Revenue
Note: 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.
189
149
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
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%
2015 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.
190
150
CITY OF LAKE FOREST, ILLINOIS Table 13
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Business-Type Activities Ratio of Total Percentage Total
Fiscal General Installment General Total Outstanding Debt of Outstanding
Year Obligation Purchase Obligation Revenue Primary To Equalized Personal Debt Per
Ended Bonds Contracts Bonds Bonds Government Assessed Valuation*Income* Capita*
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
2015 34,228,760 - 17,398,000 - 51,626,760 2.29%3.46%2,664.61
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.
191
151
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
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 55,097,197 1,144,118 53,953,079 0.80%2,784.68
2015 51,861,740 1,316,900 50,544,840 0.75%2,608.77
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.
192
152
CITY OF LAKE FOREST, ILLINOIS Table 15
Direct and Overlapping Governmental Activities Debt
As of April 30, 2015
Percentage City of
Debt Applicable Lake Forest
Gross to the City of Share
Governmental unit Debt Lake Forest*of Debt
Lake County 103,460,000$ 9.94%10,283,924$
Lake County Community College #532 77,130,000 10.48%8,083,224
Lake County Forest Preserve District 274,450,000 9.94%27,280,330
School District #67 878,573 100.00%878,573
School District #103 2,515,000 0.01%252
High School District #115 41,555,000 79.50%33,036,225
High School District #128 17,340,000 3.02%523,668
Subtotal, overlapping debt 517,328,573 80,086,196
City of Lake Forest direct debt 34,258,902 100.00%34,258,902
Total direct and overlapping debt 551,587,475$ 114,345,098$
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.
193
153
CITY OF LAKE FOREST, ILLINOIS Table 16
Legal Debt Margin Information
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Debt limit N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Total net debt applicable to limit N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Legal debt margin N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Total 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/A
Note: 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
194
154
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
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
2015 8,918,081 5,445,461 3,472,620 1,847,000 402,951 1.54
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
195
155
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
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%
2015* 19,375 (A)2,250,468,636 116,153 1,493,657,500 77,092 5.4%
(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
196
156
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
2015 2006
197
157
CITY OF LAKE FOREST, ILLINOIS Table 20
Function/Program 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
General Government
Administration 27.0 29.0 30.0 30.0 29.0 26.0 25.0 25.0 25.0 25.0
Community Development 16.0 16.0 18.0 18.0 15.0 12.5 12.5 13.0 13.0 13.0
Public Safety
Fire Protection
Firefighters 37.0 37.0 37.0 37.0 36.0 34.0 33.0 33.0 33 33
Administrative 1.0 1.0 1.5 1.5 2.5 2.5 2.5 2.0 2.0 2.0
Police
Officers 45.0 43.0 43.0 43.0 41.5 40.0 40.0 40.0 40 40
Civilians 17.0 19.0 18.5 18.5 18.5 17.5 18.0 18.0 18.0 18.0
Public Works
Public Works Administration 5.0 5.0 5.0 5.0 5.0 5.0 4.0 4.0 4 4
Building Maintenance 3.0 4.0 6.0 6.0 6.0 6.0 6.0 6.0 7 7
Engineering 6.0 7.0 7.0 7.0 7.0 6.0 5.0 5.0 5 5
Streets 8.0 8.0 8.0 8.0 8.0 8.0 7.0 7.5 7.5 7.5
Sanitation 12.0 14.0 14.0 12.0 12.0 12.0 12.0 11.5 10.5 10.5
Forestry 9.0 6.0 9.0 9.0 9.0 0.0 0.0 0.0 0 0
Fleet (vehicle) Maintenance 6.0 5.0 5.0 5.0 7.0 6.0 6.0 6.0 6 6
Water
Water Plant 9.0 9.0 9.0 9.0 9.0 8.0 7.0 7.0 6.5 6.5
Water and Sewer 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 8.5 8.5
Parks 16.0 11.0 7.3 7.3 7.3 16.4 15.4 15.4 15.4 15.4
Recreation 14.0 19.0 17.5 17.5 17.5 17.4 15.4 15.4 15.4 15.4
Golf Course 4.0 4.0 4.3 4.3 3.3 3.2 3.2 2.2 2.2 2.2
Cemetery 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2 2
Senior Resources 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3 3
Sub - total City 250.0 252.0 255.0 253.0 248.5 235.5 227.0 226.0 224 224
Library 29.6 29.6 30.0 29.0 27.2 29.6 27.9 27.8 28.2 28.2
Total all 279.6 281.6 285.0 282.0 275.7 265.1 254.9 253.8 252.2 252.2
Data Source
City Departments and employee totals as of April 30th
Full-Time Equivalent Employees
Last Ten Fiscal Years
Full-Time-Equivalent Budgeted Employees as of April 30
198
158
Table 21
Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
General Government
City Clerk
Real Estate Transfer Tax (1)
Number of Transactions - - 249 283 183 261 293 297 382 440 394
Rebates Issued - - 24 35 23 30 37 37 40 67 40
Birth Certificates Issued 2,419 2,198 2,930 2,790 2,690 2,751 1,940 2,821 2,675 2,250 2,556
Passports Issued (2)252 193 314 132 89 108 48 29 - - -
Community Development
Building permits issued 4,740 4,055 3,501 3,491 3,142 2,610 3,072 3,451 3,197 3418 3667
Residential construction 128 44 22 33 23 4 7 11 7 13 20
Commercial construction 5 1 3 1 3 1 - 1 2 1 1
Building inspections conducted 13,021 11,945 10,880 11,343 9,284 8,060 8,392 8,645 8,925 8651 9657
Public Safety
Fire protection
I.S.O. rating 4 4 4 4 4 4 4 4 4 4 4
Number of calls answered (calendar year)
EMS 1,465 1,446 1,477 1,624 1,558 1,041 1,211 1,607 1,726 1,574 1,785
Fire 1,523 1,558 1,647 1,576 1,759 1,233 1,177 1,734 1,403 1,497 1,503
Police (calendar year)
Non traffic arrests 537 506 526 450 449 424 385 335 237 191 89
Parking violations 9,655 11,189 11,898 9,530 9,626 8,472 8,757 7,114 7,013 5,979 5,250
Traffic violations 4,721 4,821 4,512 3,287 5,320 3,190 2,997 2,028 2,220 1,877 1,741
Public Works
Streets
Street resurfacing (miles) (calendar year)3.90 4.41 1.90 10.36 3.08 5.76 6.57 7.09 5.92 5.00 5.50
Potholes repaired (4)2,957 2,484 1,575 N/A N/A N/A N/A N/A N/A N/A N/A
Number of snow events
Salting 14 5 10 20 8 14 15 14 23 27 21
Plowing 10 9 16 36 25 15 20 12 12 21 20
Inches of snow 46 47 33 83 72 56 60 21 36 48 50
Sanitation
Refuse collection customers 5,896 6,217 6,316 6,356 6,361 6,361 6,471 6,471 6,472 6,462 6,654
CITY OF LAKE FOREST, ILLINOIS
Operating Indicators
Last Ten Fiscal Years
199
159
Table 21
Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Parks and Recreation (3)
Fitness
Number of programs 565 533 478 370 348 349 334 322 264 336 181
Units of participation 2,616 2,657 2,228 1,796 1,648 1,355 1,393 1,196 1,060 1,587 1,216
Athletics
Number of programs 200 199 210 220 213 278 157 309 283 270 341
Units of Participation 3,369 3,279 3,189 3,232 3,253 3,148 2,416 2,932 2,704 2,524 2,282
Lakefront, Early Childhood Education
and Lifetime Activities
Number of programs 324 323 337 343 307 306 420 395 319 294 126
Units of participation 2,169 1,932 1,874 1,873 1,541 1,402 1,344 1,424 1,576 1,380 752
Cultural Arts/Special Events
Number of programs 356 436 417 326 338 292 320 270 306 286 87
Units of participation 2,894 3,831 3,618 2,454 2,536 2,274 2,262 2,008 1,972 1,999 1,329
Wildlife Discovery Center, Ridge
Teams Course and Adventure
Number of programs 227 231 224 221 176 146 124 104 37 47 20
Units of participation 1,273 1,335 1,274 1,157 969 772 627 582 301 360 2263
Developed parks and recreation areas 10 10 10 10 10 10 10 10 10 10 10
Developed park acreage 370.5 370.5 395.5 395.5 395.5 395.5 415.0 404.0 403.7 404 404
Sites with playgrounds 8 8 8 8 8 8 8 8 9 9 9
Sites with baseball diamonds 7 7 7 7 7 7 7 8 8 8 8
Sites with soccer fields 7 7 7 7 7 7 7 7 7 7 7
Sites with basketball courts 4 4 4 4 4 4 5 5 5 5 5
Sites with tennis courts 6 6 6 6 6 6 6 6 6 6 6
Deer Path Golf Course
Size 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes
Rounds of Play 34,500 38,700 36,500 39,900 35,494 35,079 32,664 31,949 30,321 29,435 27,956
Daily fee 18,000 18,600 17,000 18,000 15,500 15,839 15,102 14,466 13,646 17,449 17,646
Seasonal 16,500 20,100 19,500 21,900 19,994 19,240 17,564 17,483 16,675 11,986 10,310
CITY OF LAKE FOREST, ILLINOIS
Operating Indicators (Continued)
Last Ten Fiscal Years
200
160
Table 21
Function/Program 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Water
New Connections (tap-ons)140 99 52 34 39 16 19 22 20 28 33
Meters in operation 6,566 6,633 6,695 6,681 6,771 6,774 6,761 6,755 6,754 6,751 6,764
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 6,577
Average daily consumption (MGD)3.942 4.913 3.931 4.182 3.737 3.611 3.669 3.759 4.202 3,652 320
Peak daily consumption (MGD)9.394 12.407 10.773 9.477 9.883 9.389 8.982 11.805 10.298 8.611 7.345
Rated daily pumping capacity (MGD)14 14 14 14 14 14 14 14 14 14 14
Total 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 1,187.6
Municipal paid parking facilities
Long-term parking spaces
Miscellaneous lots 813 813 813 813 813 813 813 813 813 813 813
Union Pacific (CBD district)98 98 98 98 98 98 98 98 98 98 98
Metra (Telegraph Road)502 502 502 502 502 502 502 502 502 502 502
Short-term parking spaces 341 341 341 341 341 341 341 341 341 341 341
Component Unit
Library services
Books and non print materials 128,817 133,893 137,343 140,171 143,518 142,654 145,496 145,539 147,330 148,318 146,214
Registered borrowers 13,634 13,820 14,002 14,233 14,490 15,145 15,645 16,200 15,160 15,403 15,440
Fiscal yearbooks, items
or materials circulation 399,844 398,504 407,399 415,547 406,998 488,056 465,927 485,450 45,632 450,876 410,852
Data Source
City 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 available
Last Ten Fiscal Years
CITY OF LAKE FOREST, ILLINOIS
Operating Indicators (Continued)
201
161
CITY OF LAKE FOREST, ILLINOIS Table 22
Function/Program 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Public Safety
Police
Stations 1 1 1 1 1 1 1 1 1 1
Vehicles 23 23 23 23 23 23 23 25 23 23
Fire protection
Stations 2 2 2 2 2 2 2 2 2 2
Vehicles 14 14 14 14 14 14 14 14 17 15
Public Works
Bridges
Vehicle 14 14 14 14 14 14 14 14 14 14
Pedestrian 7 7 7 7 7 7 7 7 7 8
Streets
Streets (centerline miles)118.66 118.66 118.66 119.00 119.00 119.00 119.00 119.00 119.24 119.24
Streetlights
Gas 438 438 438 438 438 438 438 438 438 438
Electric 1,452 1,460 1,460 1,460 1,473 1,526 1,526 1,526 1,536 1,570
Storm sewer (miles)217.56 218.26 218.26 218.29 219.17 219.35 219.41 219.41 219.41 219.41
Parks and Recreation
Acreage 370.5 395.5 395.5 395.5 395.5 415.0 404.0 404 404 404
Water
Water mains (miles)160.51 163.33 164.27 165.25 165.25 165.25 165.25 165.25 165.79 166.44
Fire hydrants 1,350 1,353 1,331 1,362 1,362 1,362 1,362 1,362 1,362 1,511
Wastewater
Sanitary sewers (miles)136.12 137.60 138.39 138.71 138.90 138.90 138.95 138.95 138.95 138.95
Data Source
City departments
N/A equals data not available
Capital Asset Statistics
Last Ten Fiscal Years
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The City of Lake Forest
CITY COUNCIL
Proceedings of the Monday, October 19, 2015
City Council Meeting - City Council Chambers
CALL TO ORDER AND ROLL CALL: Honorable Mayor Schoenheider called the meeting to order at
7:25pm, and Assistant to the City Manager Mike Strong called the roll of Council members.
Present: Honorable Mayor Schoenheider, Alderman Waldeck, Alderman Beidler, Alderman
Newman, Alderman Pandaleon, Alderman Tack, Alderman Reisenberg, Alderman Adelman and
Alderman Moreno.
Absent: None.
Also present were: Robert Kiely, City Manager; Susan Banks, Communications Manager; Elizabeth
Holleb, Finance Director; Victor Filippini, City Attorney; Catherine Czerniak, Director of Community
Development; DeSha Kalmar, Director of Human Resources; Michael Thomas, Director of Public
Works; Karl Walldorf, Deputy Chief of Police; Craig Lepkowski, Police Commander; Robert Ells,
Engineering Supervisor; Joe Gabanski, Assistant Director, IT Division; Jim Lockefeer, Management
Intern and Anne Whipple.
There were approximately 25 present in the audience.
PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was recited by all in attendance.
REPORTS OF CITY OFFICERS
COMMENTS BY MAYOR
A. Resolution of Sympathy for Edward “Tim” Christie
Mayor Schoenheider read the Resolution. Mayor Schoenheider provided his regards and
sympathy to the Christie Family.
COUNCIL ACTION: Approve the Resolution
Alderman Pandaleon made a motion to approve the Resolution, seconded by Alderman Newman.
Motion carried unanimously by voice vote.
B. Red Ribbon Week Proclamation October 23-21, 2015
Mayor Schoenheider read the Proclamation.
C. Update and Report from Lake Forest Caucus
- Eileen Looby Weber, President, Lake Forest Caucus
Mayor Schoenheider introduced Eileen Looby Weber and welcomed her to the dais. Ms. Looby
Weber thanked the Mayor and City Council for the invitation to speak before the City. She
reviewed a presentation concerning the purpose of the Lake Forest Caucus, and how residents can
get involved if they are interested in serving their community. Ms. Looby Weber also reported on
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open house meeting that the Caucus will be hosting on November 17, 7 p.m. at Gorton
Community Center.
COMMENTS BY CITY MANAGER
A. Report on East Side Train Station Survey
City Manager Robert Kiely introduced a survey that City staff has drafted concerning the interior
improvements for the Central Business District train station. Assistant to the City Manager Mike
Strong, indicated that staff was seeking feedback from City Council on questions that could be
asked within the survey, and stated that the plan is to use the results of this survey as a guide in
designing and prioritizing the interior improvements.
B. Report on Lake Forest Collaborative for Environmental Leadership
City Manager Robert Kiely asked that Alderman Reisenberg present a request by the Lake Forest
Collaborative for Environmental Leadership. Alderman Reisenberg stated that the Collaborative
would be hosting a Community Forum on Sustainability on Wednesday, October 21, 7 p.m. at
Gorton Community Center to review results from a survey that was conducted on sustainability,
and to hold open discussions on activities and issues that could be incorporated in the City’s
sustainability plan.
COMMENTS BY COUNCIL MEMBERS
Mayor Schoenheider asked that Alderman Beidler provide an update from the Senior Resources
Committee, and specifically recent activities that had taken place at Dickinson Hall.
SENIOR RESOURCES COMMITTEE
Alderman Beidler provided an update and overview of a recent meeting that took place at
Dickinson Hall last week. She stated that the purpose of the meeting was to serve as a listening
session for members, and to discuss the recent changes that have been occurring at the facility.
She stated that it was a great turnout, and that the members were generally appreciative of the
support and information that the Parks and Recreation Department provided during the meeting.
Alderman Beidler stated that approximately 125 members attended the meeting.
FINANCE COMMITTEE
A. Acknowledge Receipt of the FY2015 Treasurer’s Report
Alderman Pandaleon, Chairman of the Finance Committee, gave a brief recap of the Treasurer’s
Report, which included the endorsement of the Finance Committee. Alderman Pandaleon stated
that the report is a comprehensive list of expenditures paid by the City each year, and is required
to be reviewed and approved each year.
Mayor Schoenheider asked if there was anyone from the Public who would like to comment on
the matter. Seeing none, he asked for a motion.
COUNCIL ACTION: Acknowledge receipt of the FY2015 Treasurer’s Report
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Alderman Pandaleon made a motion to acknowledge receipt of the FY2015 Treasurer’s Report,
seconded by Alderman Moreno. The following voted “Yea”: Aldermen Waldeck, Beidler,
Pandaleon, Newman, Tack, Reisenberg, Adelman and Moreno. The following voted “Nay”: None. 8
Yeas, 0 Nays, motion carried.
B. Approval of a Resolution Authorizing Dissolution of the Consolidated IMRF Employer Account
for the City and School District 67, and Authorizing Establishment of Separate Employer
Accounts
Alderman Pandaleon, Chairman of the Finance Committee, provided a recap of the agenda item,
which would allow the City to split its current IMRF account into two separate accounts. He stated
that this action will cater to the needs of each employee group and enhance the City’s accounting
and reporting capabilities.
Mayor Schoenheider asked if there was anyone from the Public who would like to comment on
the matter. Seeing none, he asked for a motion.
COUNCIL ACTION: Approval of a Resolution Authorizing Dissolution of the Consolidated IMRF
Employer Account for the City and School District 67, and Authorizing Establishment of Separate
Employer Accounts
Alderman Newman made a motion for approval of a resolution authorizing dissolution of the
consolidated IMRF employer account for the City and School District 67, and authorizing
establishment of separate employer accounts, seconded by Alderman Moreno. The following
voted “Yea”: Aldermen Waldeck, Beidler, Pandaleon, Newman, Tack, Reisenberg, Adelman and
Moreno. The following voted “Nay”: None. 8 Yeas, 0 Nays, motion carried.
OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS
No one from the audience chose to address the City Council.
ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approval of the October 5, 2015 City Council Meeting Minutes
2. Ratification of Resolution for the Lake Forest Shop
3. Approval of the purchase of computer workstations, laptops and iPads for City
departments as budgeted in FY2016 Capital Plan
4. Award of a Thirty Six (36) Month Contract with Microsoft for Software License
Renewal Including Office 365
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5. Consideration of an Ordinance Establishing The City of Lake Forest Special
Service Area No. 40, Regency Lane Area Sanitary Improvement Project (Final
Approval)
6. Consideration of Ordinances Approving Recommendations from the Building
Review Board. (First Reading and if Desired by the City Council, Final Approval)
7. Consideration of a Recommendation in Support of Extension of the Contract
with Jacob & Hefner Associates for Professional Services Related to the
Environmental Clean-up of the City’s Former Municipal Services Site.
COUNCIL ACTION: Approve the six (7) Omnibus items as presented.
Mayor Schoenheider asked members of the Council if they would like to remove any item or take
it separately. Seeing none, the Mayor asked for a motion to approve the seven Omnibus items.
Alderman Reisenberg made a motion to approve the Omnibus items, including waiver of first
reading, seconded by Alderman Pandaleon. The following voted “Yea”: Aldermen Waldeck,
Beidler, Pandaleon, Newman, Tack, Reisenberg, Adelman, and Moreno. The following voted
“Nay”: None. 8 Yeas, 0 Nays, motion carried.
Information such as Purpose and Action Requested, Background/Discussion, Budget/Fiscal Impact,
Recommended Action and a Staff Contact as it relates to the Omnibus items can be found on the
agenda.
ORDINANCES
ORDINANCES AFFECTING CODE AMENDMENTS
1. Approval of an Ordinance Updating Chapter 10 (“General Provisions”) of the City Code
(First Reading, and if Desired by the City Council, Final Approval)
City Attorney Vic Filippini provided an update to City Council on the purpose of the updates that
are needed to the City Code. Mr. Filippini stated that changes proposed in this Ordinance will
assist in improving pre-existing language, and will establish an official address for the City.
Mayor Schoenheider asked if there was anyone from the Public who would like to comment on
the matter. Seeing none, he asked for a motion.
COUNCIL ACTION: Approval of an Ordinance Updating Chapter 10 (“General Provisions”) of the
City Code (First Reading, and if Desired by the City Council, Final Approval)
Alderman Moreno made a motion to grant final approval of an ordinance updating Chapter 10
(“General Provisions”) of the City Code, seconded by Alderman Beidler. The following voted “Yea”:
Aldermen Waldeck, Beidler, Pandaleon, Newman, Tack, Reisenberg, Adelman, and Moreno. The
following voted “Nay”: None. 8 Yeas, 0 Nays, motion carried.
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2. Consideration of an Ordinance Amending Chapter 11 of the City Code, as Recommended
by City Staff. (First Reading, and if Desired by the City Council, Final Approval)
City Manager Robert Kiely introduced the agenda item and stated that it was relative to the
administrative hearing process, and offenses that would be added to those qualifying to be heard
before an administrative adjudication official. He stated that bicycle usage on streets and tobacco
usage, in certain circumstances, would be added to the Code. While the Ordinance has been
reviewed by all, City Manager Kiely recommended that the City Council approve first reading only.
He stated that staff will provide a copy of the Ordinance for review and consideration during the
next City Council meeting.
Mayor Schoenheider asked if there was anyone from the Public who would like to comment on
the matter. Seeing none, he asked for a motion.
COUNCIL ACTION: Consideration of an Ordinance Amending Chapter 11 of the City Code,
as Recommended by City Staff. (First Reading, and if Desired by the City Council, Final
Approval)
Alderman Pandaleon made a motion to approve first reading of an ordinance amending
Chapter 11 of the City Code, seconded by Alderman Moreno. On a voice vote, the motion
carried unanimously.
NEW BUSINESS
1. Consideration of an Ordinance Approving a Recommendation from the Zoning Board of
Appeals in Support of an Amendment to the Special Use Permit for the Winter Club.
(First Reading, and if Desired by the City Council, Final Approval)
Director of Community Development Catherine Czerniak reviewed a presentation concerning the
recommendation from the Zoning Board of Appeals regarding the Special Use Permit for the
Winter Club. She stated that this proposal has been under consideration for a number of years,
but the applicants are back before Council to consider some amendments to the special use
permit that will allow for construction of paddle tennis courts, parking expansion, and
improvements to the residential parcel on the site.
Ms. Czerniak stated that the Zoning Board of Appeals commended the changes that were
incorporated into the new scope of the project, and stated that several of the concerns raised in
2012 had been addressed.
Mayor Schoenheider asked if there was anyone from the Public who would like to comment on
the matter. Seeing none, he asked for a motion.
COUNCIL ACTION: Consideration of an Ordinance Approving a Recommendation from the
Zoning Board of Appeals in Support of an Amendment to the Special Use Permit for the Winter
Club. (First Reading, and if Desired by the City Council, Final Approval)
Alderman Beidler made a motion to grant final approval of a recommendation from the Zoning
Board of Appeals in support of an amendment to the Special Use Permit for the Winter Club,
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seconded by Alderman Reisenberg. The following voted “Yea”: Aldermen Waldeck, Beidler,
Pandaleon, Newman, Tack, Reisenberg, Adelman, and Moreno. The following voted “Nay”: None.
8 Yeas, 0 Nays, motion carried.
2. Consideration of a Recommendation from the Zoning Board of Appeals of an
Amendment to the Special Use Permit for Lake Forest College as it Pertains to Farwell
Field and Halas Hall. (First Reading, and if Desired by the City Council, Final Approval)
Director of Community Development Catherine Czerniak reviewed a presentation that provided an
overview of Lake Forest College’s request to amend its Special Use Permit to allow for temporary
lighting on Farwell Field. She stated that the request was made to allow for the College to practice
late in the season, after daylight savings time.
Ms. Czerniak stated that the Zoning Board of Appeals unanimously supported the request; and
recognized that the College had made substantial efforts to find alternative practice facilities.
Additionally, she stated that the Zoning Board of Appeals recommended some conditions to their
approval, which will help minimize the impact that these temporary structures have on the
character of the neighborhood.
Mayor Schoenheider asked if there was anyone from the Public who would like to comment on
the matter. Seeing none, he asked for a motion.
COUNCIL ACTION: Consideration of a Recommendation from the Zoning Board of Appeals of an
Amendment to the Special Use Permit for Lake Forest College as it Pertains to Farwell Field and
Halas Hall. (First Reading, and if Desired by the City Council, Final Approval)
Alderman Pandaleon made a motion to grant final approval of a recommendation from the Zoning
Board of Appeals in support of an amendment to the Special Use Permit for the Lake Forest
College as it pertains to Farwell Field and Halas Hall, seconded by Alderman Moreno. The
following voted “Yea”: Aldermen Waldeck, Beidler, Pandaleon, Newman, Tack, Reisenberg,
Adelman, and Moreno. The following voted “Nay”: None. 8 Yeas, 0 Nays, motion carried.
3. Discussion on Potentially Changing the Mayor’s Term
City Manager Robert Kiely provided an overview of the Council agenda item, and discussed the
background and feasibility of modifying the Mayor’s term. He stated prior to 2002, the Mayor was
eligible to serve three (3) one-year (1-yr) terms. A referendum in 2002 modified this term limit to
allow for two (2) two-year (2-yr) terms. City Manager Robert Kiely stated that any future
modification would require a referendum.
General discussion took place among the Council regarding the topic, and several questions were
posed to Mayor Schoenheider regarding the concept. Mayor Schoenheider stated that it took him
some time to feel comfortable in the role, and to build the necessary relationships with various
people within the organization, community, and region.
Alderman Reisenberg asked if any previous Mayors had reached out to City staff concerning this
topic, or if they had any insight. City Manager Robert Kiely stated that he had not received any
specific feedback from anyone on the subject.
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Alderman Waldeck stated that she believes the Mayor’s job is very demanding, and asked whether
or not a four (4) year term or six (6) year term would be more beneficial. Alderman Adelman
stated that it could be changed to three (3) two-year (2-yr) terms, of which some of the other
Aldermen concurred.
Alderman Adelman asked about procedure, and whether or not a subcommittee should be
formed to further vet this discussion and issue.
Alderman Tack stated that he believes it makes more sense to suggest two (2) three-year (3-yr)
terms, as it would require fewer re-elections and more time to focus on the position. Alderman
Reisenberg stated that he could see both sides working to some advantage.
Alderman Beidler asked City Attorney Filippini about timing of the referendum, and when a
decision would have to be made about moving forward. She stated that she may need more time
to think about the issue, and to engage the public in this discussion. City Attorney Filippini stated
that there would be time for a referendum to be conducted in March, or during the November
general election. City Manager Robert Kiely stated that turnout is generally higher for general
elections, which would provide City Council more time to discuss the issue.
Alderman Newman suggested that the City Council prepare to have this discussion during the
November Town Hall Meeting and ward meetings that are scheduled for early 2016. Alderman
Beidler agreed and stated that the Council could gather feedback and potential support for the
issue through next summer, and file for referendum in August 2016.
ADDITIONAL ITEMS FOR COUNCIL DISCUSSION
ADJOURNMENT
There being no further business, Alderman Reisenberg made a motion to adjourn, seconded by
Alderman Adelman. Motion carried unanimously by voice vote at 9:04 p.m.
Respectfully Submitted,
Mike Strong
Assistant to the City Manager
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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1
THE CITY OF LAKE FOREST
ORDINANCE NO. 2015-___
AN ORDINANCE AMENDING CHAPTER 11
OF THE CITY CODE RELATING TO THE
CITY ADMINISTRATIVE HEARING SYSTEM
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 of Lake Forest (the “City Code”) to assure that it appropriately addresses new
issues that may arise; and
WHEREAS, at the direction of the City Council, the City Staff, City Attorney, and
City Council Liaison (the “Panel”) reviewed Chapter 11 of the City Code; and
WHEREAS, the Panel determined that making certain changes to Chapter 11 will
promote a clearer understanding of the Code and thereby would serve the best interests
of the City and its residents; and
WHEREAS, the Mayor and City Council, having considered the recommendation
of the City Manager, City Staff, City Council Liaison, have determined that adopting this
Ordinance and amending Chapter 11, “City Administrative Hearing System,” of the City
Code as hereinafter set forth, will be in the best interests of the City and its residents;
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 Section 11.02. Section 11.02, entitled
“Establishment of Administrative Hearing System,” of Chapter 11, entitled “City
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Administrative Hearing System,” of the City Code is hereby amended in its entirety, so
that said Section 11.02 shall hereafter be and read as follows:
§ 11.02 ESTABLISHMENT OF ADMINISTRATIVE HEARING SYSTEM. There is hereby established and created within the city a Code Hearing Unit (as more fully described in § 11.04) that will administer an administrative hearing system to enforce and adjudicate violations (“violations”) of the following chapters of the city code, as amended from time to time (the “code”), and all subchapters within such chapters, as the same have been, and may from time to time hereafter be, amended: (A) Title VII, Traffic (except for moving violations under this chapter); (B) Chapter 75, Bicycles (BC) Chapter 91, Animals and Fowl; (CD) Chapter 94, Fire Prevention; (DE) Sections 95.001, 95.110 through 95.112, 95.125 through 95.133, 95.145 through 95.147, 95.160, 95.161 and 95.195; 95.175 through 95.180 (EF) Chapter 111, Alcoholic Beverages; (FG) Chapter 117, Peddlers, Solicitors and Canvassers; (GH) Title XIII, General Offenses; (HI) Chapter 150, Buildings; and (IJ) Such other city ordinances and code provisions as the City Council may, from time to time, designate in accordance with applicable law.
SECTION THREE: Amendment to Subsection 11.05(D). Subsection (D),
entitled “Compensation,” of Section 11.05, entitled “Hearing Officer,” of Chapter 11,
entitled “City Administrative Hearing System,” of the City Code is hereby amended in its
entirety, so that said Subsection 11.05(D) shall hereafter be and read as follows:
SEC. 11.05 HEARING OFFICER.
* * *
(D) Compensation. Compensation for a Hearing Officer will be
authorized by the City Council through the city’s annual budget process.
The City Manager thereafter is authorized to established specific
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compensation levels for individual Hearing Officers within approved
budget limitations.
SECTION FOUR: Amendment to Subsection 11.09(B). Subsection (B) of
Section 11.09, entitled “Hearings,” of Chapter 11, entitled “City Administrative Hearing
System,” of the City Code is hereby amended in its entirety, so that said Subsection
11.09(B) shall hereafter be and read as follows:
SEC. 11.09 HEARINGS.
* * *
(B) The hearings will be tape recorded, digitally or in analog format or by
other means.
SECTION FIVE: 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 _____, 2015
AYES:
NAYS:
ABSENT:
ABSTAIN:
Approved this _____ day of ____, 2015
Mayor
ATTEST:
Deputy City Clerk
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PROCLAMATION OF
CELEBRATION OF ARTS & CULTURE MONTH IN LAKE FOREST
November, 2015
WHEREAS, the City of Lake Forest and the Lake Forest/Lake Bluff Chamber of Commerce
encourage and celebrate public-private partnerships that contribute to the prosperity and
vitality of our community; and
WHEREAS, we recognize the importance of maintaining Lake Forest’s tradition of celebrating
arts and community spirit, and of bringing the past to life and enhancing the present; and
WHEREAS, LFLB ArtsLink has been established to create an alliance of local arts and cultural
entities to promote collaboration and support initiatives that connect artists and artisans,
thespians and musicians, writers and readers, and citizens and their history; and
WHEREAS, arts and culture are essential components of a vital community and these
partnerships have, and will continue to play a part in sustaining the quality of life and important
social and educational roles in the lives of both children and adults; and
WHEREAS, we recognize the valuable contributions of our arts and cultural entities, and honor
the organizations for their contribution to the rich cultural fabric of our community and their
beloved place among our community’s traditions; and
WHEREAS, we extend our heartfelt appreciation to the many people who enrich our
community by volunteering their time, passion, energy, and talent and make the City of Lake
Forest a great place to live, work, and play;
NOW, THEREFORE, BE IT RESOLVED THAT I, Donald Schoenheider, Mayor of the City of Lake
Forest, do hereby proclaim the month of November as Arts & Culture Month, and with
members of the City Council extend heartfelt congratulations and gratitude to the valued arts
and cultural entities within the community, and urge the citizens of Lake Forest to join us in
celebrating and supporting our beloved institutions.
ADOPTED THIS 2ND OF NOVEMBER, 2015.
______________________________________
Donald P. Schoenheider, Mayor
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Stage 3 Improvements (Interior)
Stage 2 Improvements (Exterior) Jul-15Sep-15Nov-15Jan-16Mar-16May-16Jul-16Sep-16Nov-16Jan-17Construction Work
City Council Approval
ITEP/IDOT Approvals
Local Bid Letting
Final PS & E to IDOT
ITEP/IDOT Approvals (w/ Const. Engineering)
Interior Design (90%)
ITEP/IDOT Approvals (Phase III)
City Council Approval - Const. Engineering
Design Presentation
Design Kick-Off Meeting
Interior Design (30%)
ITEP/IDOT Approvals (Consultant, Phase II)
Interior Design RFQ
Construction Work - Tuckpointing/Painting
Pre-Construction Meeting
Materials Ordering/Procurement Phase
City Council Approval
ITEP/IDOT Approvals
Local Bid Letting
Notify IDOT of Schedule Change
EAST TRAIN STATION RENOVATION PROJECT TIMELINE
Completed
Remaining
Note: Stage 1 (Roof) Improvements were completed in September 2013 238
THE CITY OF LAKE FOREST ADMINISTRATIVE DIRECTIVE 1-17
Office of the City Manager October 21, 2015
SPECIAL EVENT POLICY
1.0: PURPOSE
2.0: DEFINITIONS
3.0: AUTHORITY TO WAIVE REQUIREMENTS
4.0: PERMITS AND REQUIREMENTS
5.0: EXCEPTIONS
6.0: STANDARDS FOR ISSUANCE OF PERMIT; PERMIT CONDITIONS
7.0: PROCEDURE FOR REVIEW OF APPLICATIONS; LATE APPLICATIONS
8.0: SPECIAL CITY SERVICES
9.0: FEES
10.0: DUTIES OF PERMITTEE
11.0: HARDSHIP REQUEST; WAIVER OF FEES
12.0: SUSPENSION OR REVOCATION OF PERMITS
13.0: DENIAL OF PERMIT; APPEAL
1.0 PURPOSE.
There are two main purposes of this administrative directive which include: to provide guidelines for staff in
handling special event requests; and to create additional service relations among the Community. This directive
establishes all special event classifications, and their corresponding processes for special event organizers to
follow for obtaining special event permits.
This directive pertains to any special event that occurs either on public or private property, such as community-
wide special events, marathons, , parades, art shows, concerts, or home shows, which have a direct effect upon
public property, traffic flow in the City, or public health or safety.
This directive does not supersede existing Special Use Permits that have been approved for certain properties
within the City, The City of Lake Forest Traffic Code, which provides that no procession or parade, except for the
U.S. Armed Forces, the military forces of this State, and the police and fire departments, shall occupy, march, or
proceed along any street, except in accordance with a permit issued by the City Manager. Funeral processions
and block parties are also exempt from this process.
The City welcomes all special events that meet the criteria set forth in this policy and which adhere to the
requirements outlined in the City of Lake Forest Special Event Permit Application and Guide.
2.0 DEFINITIONS. For the purpose of this policy and future amendments thereto, certain terms and words are
hereby defined. Whenever the following words, terms and/or phrases are used in this Policy, they shall have the meanings
respectively ascribed to them in this Section as specified below, except where the context indicates a different meaning:
BLOCK PARTY: (See “Residential Neighborhood Block Party”)
CITY: Means the City of Lake Forest, County of Lake.
CITY CLERK: Means the City Clerk of the City.
CITY CODE: Means the City Code of the City of Lake Forest, Count of Lake, as amended from time to time.
CITY LIAISON: Means the City staff member assigned to function as the primary City contact for an event.
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CITY MANAGER: Means the City Manager of the City, or his or her designee.
CITY NON-SPONSORED COMMUNITY EVENT: Means an event which will be held, in whole or in part, on
public property within the City and/or which will require the use of special City services; and
(1) Certain elements of the event occur in the City (at minimum, the event will either commence or end
in the City); and
(2) Is organized by a community organization; and
(3) The event is organized and held with the primary objective of serving as a fundraiser for the
organization, but the event does provide some level of economic, cultural, or social benefit to the
City.
CITY SPONSORED COMMUNITY EVENT: Means an event which will be held, in whole or in part, on public
property within the City and/or which will require the use of special City services; and
(1) Occurs within the City; and
(2) Is open to the public; and
(3) Is supported by the City as evidenced by either the inclusion in the City budget or through adoption of
a resolution identifying City support for the event; and
(4) For which the City, with the express approval of the Corporate Authorities, is listed as a sponsor or
co-sponsor in all promotional marketing materials for the event; and
(5) The event is organized and held with the primary objective that creates activities that attract people or
retain people in the City, to foster community spirit, to increase business activity and tourism, and/or
provide other economic, cultural and/or social benefits to the City.
COMMUNITY EVENT: Means a special event which is a City-endorsed community event, or a City non-
sponsored event.
COMMUNITY ORGANIZATION: Means a not-for-profit or governmental organization located within the
corporate limits of the City or within the area covered by the Lake Forest-Lake Bluff Chamber of Commerce or
sponsored by qualifying charitable, civic, or governmental organizations which seek to strengthen and enhance
certain aspects of the community and to strengthen Lake Forest’s identity as a premier community to live, work,
and play.
CORPORATE AUTHORITY: Means the Mayor and City Council of the City of Lake Forest.
EVENT: A parade, public assembly, special event, or similar activity requiring a permit pursuant to this Policy.
EVENT MANAGER: Means the person responsible on behalf of the sponsoring organization and/or permittee
for managing the parade, public assembly, or special event and ensuring that the sponsoring organization and/or
permittee and all participants and spectators comply with all the permit conditions, the City Code and City
Charter, and all other requirements applicable to the sponsoring organization and/or permittee and the proposed
Event, and which person shall also be the primary contact person between the permittee and the City Liaison
responsible for coordinating all the submittals required by or requested by the City.
EXHIBIT: Means an object or collection of objects shown in an exhibition, display, fair, etc.
GARAGE SALE: Means all general sales of goods open to the public, conducted from a residential premises
including, but not limited to, all sales entitled “garage,” “lawn,” “yard,” “attic,” “porch,” “room,” “backyard,”
“patio,” “flea market,” “rummage,” “estate,” “ or “moving” sale.
OTHER EVENT: Means a special event which will be held, in whole or in part, on public property within the
City and/or which will require the use of special City services, and:
(1) Which is held primarily outside of the City; or
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(2) Which is held within the City but not meeting the criteria for City sponsored, or City endorsed or City
non-sponsored; or
(3) Which may or may not be organized by a community organization; or
(4) Which is of limited economic, cultural and social benefit to the City
PARADE: Any march, ceremony, show, exhibition, pageant, or procession of any kind, or similar display, upon
any public property in the City where the number of participants and/or spectators is expected or may reasonably be
expected to exceed one hundred (100) or more patrons and/or vehicles.
PARK RESERVATIONS: A park reservation is defined as an authorization to make use of a park located within
the corporate limits of The City of Lake Forest. A park reservation is not classified as a special event unless it meets the
criteria set forth within the definition. If a park reservation does not meet the criteria set forth, the person(s) wishing to
reserve park space must contact the Recreation Center located at 400 Hastings Road, at 234-6700 for approval.
PERMIT: Means a non-transferable permit issued under this Policy by the City to hold a special event, parade, or
public assembly in the City. The Special Event Permit Application Form includes the form or forms approved by the City
Manager for use in applying for a special event permit, which forms may be amended from time-to-time in the discretion
of the City Manager.
PERMITTEE: Means any person or organization that has been issued a permit pursuant to this Policy.
PERSON: Means any individual, partnership, association, organization, or corporation.
PRIVATE FUNCTION: Means any event or gathering of persons of a temporary nature where attendance is by
invitation only, or not intended for the general public without a fee, admission, or other charge assessed to attend..
PUBLIC ASSEMBLY: Any congregation or gathering of persons held outdoors and upon any public property for
the purpose of hearing or observing individuals or demonstrating views on a topic, either verbally or nonverbally, in the
City where the number of participants and/or spectators is expected or may reasonably be expected to exceed one hundred
(100) or more persons and/or vehicles.
PUBLIC PROPERTY: Any public right-of-way or any property owned by or dedicated to the City.
RESIDENTIAL NEIGHBORHOOD BLOCK PARTY: Means a special event consisting of a residential
neighborhood gathering utilizing public property and/or limited special City services.
SPECIAL EVENT: Means a community event, parade, private assembly, or other community event, which will
be located in whole or in part, on public property within the City and/or which will require the use of special City
services, and is generally classified as follows:
(1) “Class A” Event: A Class A Special Event is defined as a community event on public or private
property, that may require equipment and resources from City departments, and may close the event
location down to the public from its regular use for a period of time, and may otherwise impact
streets, sidewalks, parking lots, or other public right-of-ways. Any event which is to take place in
Market Square, or Forest Park shall be classified as Class A events.
(2) “Class B” Special Event: A Class B Special Event is defined as a community event on public or
private property, that may require manpower and resources from City departments, and may either
close the event location down to the public from its regular use for a limited period of time, or open
the event location to a broader use base than is customary. A Class B Special Event has limited
impact on the community-at-large, or a requirement of minimal City involvement.
(3) “Class C” Special Event: A Class C Special Event is defined as any other special event on public or
private property that may not require manpower and resources; however may require staff guidance
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with other Special Event organizers to create awareness and coordination where necessary. A Class
C Special event does not fall into a category A or B category.
SPECIAL CITY SERVICES: Means services provided by the City during any parade, public assembly, special
event, or similar event, which are in addition to above and/or beyond the respective level of such services and/or
operations normally provided by the City, which services may include, but are not limited to, any of the following: street
closures; provision of barricades; trash or recycling receptacles; special parking signs; special electrical services; special
police protection; special fire/EMS protection; or use of City vehicles and/or equipment.
SPECIAL CITY SERVICES FEES: Means any charges to be paid by the sponsoring organization and/or
permittee for special City services.
SPONSORING ORGANIZATION: Means any partnership, association, organization, or corporation, including
the City, which is the permittee conducting, or the proposed permittee desiring to conduct any parade, public assembly,
special event, or similar event.
SUPPORT STRUCTURES: Means any temporary exhibits or structures erected in connection with any parade,
public assembly, special event, or similar event, including but not limited to stages, scaffolding, bleachers, tents, stands
and/or booths.
3.0 AUTHORITY TO WAIVE REQUIREMENTS. The City Manager may, in their sole discretion, waive any
provision(s) of this Policy.
4.0 PERMIT AND REQUIREMENTS.
4.1 General:
4.1.1 It shall be unlawful for any person to conduct an event within the corporate limits of the City
unless a permit therefor has been issued pursuant to this Policy.
4.1.2 No event is permitted on any property within the City unless a permit allowing such activity has
been obtained pursuant to this Policy.
4.2 Filing of Application:
4.2.1 Any person wishing to secure a permit pursuant to this Policy shall submit an application to the
City to obtain such a permit, which application shall identify, among other items, the details of
the event and permits which may be necessary or required to hold such event, as well as the name
of an “Event Manager” for the proposed event, who shall be the primary contact between the
permittee and the City in coordinating the submittals requested by or required by the City. This
Policy applies to all events, including community events, as well as all other events held in the
City and requiring the use of public property and/or special City services.
4.2.2 Any person seeking to obtain a permit pursuant to this Policy shall file an application with the
City Manager not less than ninety (90) days before the date for which an event will utilize public
property and/or special City services. Applications for permits shall be made to the City
Manager. The City Manager may request additional information form the applicant. An
application will not be considered filed until all the required and requested information is
submitted as set forth in this Policy. The City Manager is authorized to establish rules,
regulations and procedures, in addition to those provisions set forth in this Policy, for the
processing of event permit applications.
4.2.3 In order for any application for a permit pursuant to this Policy to be reviewed by the City
Manager or the Corporate Authorities, it must contain, minimally, any and all information and
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requested materials listed in Subsection 4.3 of this Policy, as well as other information and
material which the City Manager may deem necessary, including but not limited to the provision
set forth in Subsection 6.0 herein.
4.2.4 The City Manager shall have final approval authority of all applications for “Class B” and “Class
C” special event permits issued pursuant to this Policy. The Corporate Authorities shall have
final approval authority of all applications for “Class A” special event permits, or those which are
to take place in Market Square or Forest Park pursuant to this Policy.
4.3 Cash Deposit Required: Before the issuance of any permit pursuant to this Policy, with the exception of
events included under Section 5.0, the City Manager or the Corporate Authorities shall require the proposed
permittee to furnish a cash deposit with the City Clerk in order to reimburse the City for any expenses
incurred by the City relative to the proposed event, in the amount of not less than two hundred and fifty
dollars ($250.00) or such other amount as reasonably determined necessary, or as included in subsection(s)
4.3.1 and 4.3.2, respectively, by the City Manager, or his or her designee, prior to a permit being issued.
4.3.1 Events in Market Square: For proposed events that will take place in Market Square, a cash
deposit in the amount of not less than five hundred ($750.00) or such other amount as reasonably
determined necessary by the City Manager, or his or her designee, shall be provided with a
completed application.
4.3.2 Events in Forest Park: For proposed events that will take place in Market Square, a cash
deposit in the amount of not less than five hundred ($500.00) or such other amount as reasonably
determined necessary by the City Manager, or his or her designee, shall be provided with a
completed application.
4.4 Contents of Application: Any application for an event permit filed with the City Manager shall contain,
include, or be accompanied by the following information:
4.3.1 The name, address and phone number of the person signing the application, the proposed
permittee, and the applicant’s event manager.
4.3.2 If the event is proposed to be conducted for, on behalf of, or by an organization, the application
shall contain the name, address and phone number of the authorized and responsible leaders of
the organization conducting the parade, special event, or other similar activity, and the name,
address and telephone number of the headquarters of the organization and the names, addresses,
and telephone numbers of any state, regional, and national organizations with which the applicant
organization is affiliated.
4.3.3 A description of the event that will be conducted.
4.3.4 The dates, times, and location of the event, including but not limited to the hours that the event
will commence and terminate, the location of the assembly area, the time when the participants
will begin to assemble, and/or the times necessary for any assembly and/or dismantling of any
support structures.
4.3.5 The estimated number of people who will be in attendance at the event.
4.3.6 A statement as to whether food and/or alcohol beverages will be sold or available during the
event. If food and/or alcoholic beverages are proposed to be sold or available during the event,
the permittee shall be responsible to obtain the necessary permit(s), license(s), and/or approval(s)
from the City from the applicable County health department, and/or such other applicable
agencies for the sale of same and provide to the City a copy of said permit(s) and/or approval(s).
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4.3.7 The route to be traveled, if any, including the starting point and the termination point, if any.
4.3.8 The approximate number of persons, animals, and vehicles expected to participate in the parade,
public assembly, special event, or similar activity.
4.3.9 A statement as to whether the event will occupy all or only a portion of the width of the streets or
rights-of-way proposed to be utilized.
4.3.10 A statement identifying the special City services, if any, the applicant will either request or will
be required to provide.
4.3.11 A copy of the tax exemption letter issued for any applicant claiming tax-exempt non-profit status.
4.3.12 The proposed traffic and pedestrian circulation plan.
4.3.13 Number and location of portable sanitation facilities, when appropriate, and other equipment,
services or support structures necessary to conduct the event, giving due regard for participant
and public health and safety and the requirements of the Americans with Disabilities Act.
4.3.14 The number of persons proposed or required to monitor or facilitate the event, including
provisions for spectator or participant control and direction.
4.3.15 Provisions for first aid and emergency medical services, based on risk factors attendant to the
event.
4.3.16 A statement naming an insurance company approved by the City Manager that will issue an
insurance policy for public and general liability in the amount of $1,000,000 naming the City, its
officers, employees, and agents, as additional insured for the event, as well as an agreement (in
form approved by an attorney for the City) by the permittee and sponsoring organization to
indemnify and hold harmless the City and its officers, employees, and agents from all losses,
damages, injuries, claims, demands and expenses arising out of the operation of the event or the
condition, maintenance and use of the public property involved with the event.
4.3.17 Such other information as may be reasonably necessary to determine compliance with this Policy,
including but not limited to:
a. A statement as to whether in the past the applicant has been granted such a permit from the
City;
b. A statement as to permits granted by any other state, municipality, governing body or
licensing authority, and a statement as to whether any such authority has ever revoked or
refused to issue or renew such a permit, to the permittee, event manager or to the sponsoring
organization, and an accurate statement as to the reasons for any such revocation or refusal;
and
c. A statement as to whether the permittee, event manager and/or the sponsoring organization
seeking such a permit has ever been convicted of a felony, and if so, the nature of the offense
and the punishment or penalty assessed therefor.
4.3.18 In the event an event includes activities for which a separate permit is required (e.g. fireworks
display, carnival rides/amusements, park reservation, etc.), the applications and fees for such
permit(s), as well as any other license(s) which may be required, shall be filed simultaneously
with the application for the parade, public assembly, or special event permit and payment of all
applicable fees for the permit and related license(s).
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4.3.19 A sworn affidavit that all information provided on the application is complete and truthful.
4.3.20 Any additional information which the City Manager or the Corporate Authorities shall find
reasonably necessary to make a fair determination as to whether a permit should be issued.
5.0 EXCEPTIONS.
5.1 Governmental entities shall be exempt from special event permitting;
5.2 Educational institutions approved or authorized by the State of Illinois, shall be exempt from special event
permitting;
5.3 Daycare centers holding private special events shall be exempt from special event permitting;
5.4 Private special events when held within the confines of a building shall be exempt from special event
permitting (provided, however, this exemption for private special events shall not exempt event from all
applicable liquor, building code, or heath and sanitation regulations);
5.5 Private special events when held within the confines of a public park and/or other facility governed by the
Parks and Recreation department, or which qualifies as an activity defined as a “Park reservation”. Provided,
however, that the anticipated attendance shall be less than one hundred (100) participants;
5.6 A residential neighborhood block party, as defined herein, shall be exempt from special event permitting;
5.7 A garage sale, as defined herein, shall be exempt from special event permitting;
5.8 Commercial filming requests and/or activities;
5.9 A funeral procession;
5.10 A private or public event which activities, event elements, support structures and/or other items related to
the organization or facilitation of the event comply in all respects with the regulations contained within an
special provision, ordinance, agreement, special use permit, or other document of covenants governing the use
of the proposed property; and
5.11 City Sponsored Events, which include but are not limited to, Lake Forest Day, Tree Lighting Ceremony,
Festival and Fireworks, Santa in Market Square, and Concerts in the Square, shall be exempt from special
event permitting.
6.0 STANDARDS FOR ISSUANCE OF PERMIT; PERMIT CONDITIONS.
6.1 General: The City Manager, or the Corporate Authorities shall issue a permit for an event as provided for
under this Policy when, from a review of the application and other information as may otherwise be obtained,
is found that:
6.1.1 The conduct of the event will not substantially interfere with the safe and orderly movement of
traffic.
6.1.2 The event and related activity will not present an unreasonable danger to the health and safety of
the applicant, City employees, or members of the public, which is to be determined upon the basis
of past events that have occurred within the corporate limits of the City.
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6.1.3 There are available at the time of the event a sufficient number of peace officers to police and
protect lawful participants in the activity and maintain adequate police protection in the rest of the
City.
6.1.4 The concentration of persons, animals and vehicles at the assembly points of the event will not
unduly interfere with the proper fire and police protection or ambulance service.
6.1.5 The activity will not interfere with scheduled City functions or the normal activities of the public.
6.1.6 The conduct of such event will not interfere with the movement of emergency equipment
responding to an emergency.
6.1.7 Any parade is scheduled to move from its point of origin to its point of termination expeditiously
and without unreasonable delays en route.
6.1.8 Any parade, public assembly, special event, or similar activity is not being conducted for an
unlawful purpose or for the sole purpose of advertising any product, goods or event and is not
designed to be held purely for private profit.
6.2 Insurance; Hold Harmless Agreements.
6.2.1 Insurance: Before the issuance of any permit pursuant to this Policy, with the exception of a
permit for a residential neighborhood block party, or for any provisions set forth in the
exemptions under Section 5.0, the City Manager or the Corporate Authorities shall require the
proposed permittee to furnish evidence of public liability coverage insurance in the amount of
$1,000,000 naming the City, its officers, employees, agents, and volunteers, as additional insured
in such form as may be determined by the City Manager to provide for the payment of any claims
for personal injuries (including death and any injuries to City employees, agents, or contractors),
property damage or other suits arising out of or connected with such parades, public assemblies,
special events, or similar activities.
6.2.2 Each insurance policy required hereunder shall include a provision to the effect that is
shall not be subject to cancellation, reduction in any coverage, or to other material
changes until notice thereof has been received by the City Manager not less than thirty
(30) days prior to such cancellation or change and the City Manager has approved in
writing such cancellation and/or change. The City Manager shall be authorized to
approve or disapprove any such material change in an insurance policy, and the City’s
disapproval thereof may result in the non-issuance, suspension, and/or revocation of said
permit.
6.2.3 Each permittee, event manager, and/or sponsoring organization is and shall be required to
maintain the insurance required hereunder in full force and effect for the duration of the
permit period. Failure of the permittee, event manager, and/or sponsoring organization to
maintain such insurance during such period shall result in automatic revocation of the
permit. For the purposes of this Policy, the permit shall be effective during the event and
include the time required before and after the event for construction, assembly,
dismantling and removal of all materials, equipment and/or support structures, as well as
the time following the event during which the public property shall be cleared and
restored to the condition which existed prior to commencement of such event.
6.2.4 Hold Harmless Agreement: As part of each permit application, the permittee shall execute a
hold harmless agreement with the City to indemnify and hold harmless the City, together with its
officers, agents, volunteers, and employees form all losses, damages, injuries, claims, demands
and expenses arising out of, or as the result of, the operation of the event, the special City services
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provided for the event, and/or the permit issued for same, and/or the condition, maintenance and
use of the public property in connection with the event, as well as for any injury to or sustained
by a City employee, agent, or contractor in conjunction with the event authorized by the City
permit issued pursuant to this Policy.
6.3 Agreement for Payment of Costs of Special City Services : Prior to the issuance of any permit pursuant to
this Policy, all permittees, event managers, and/or sponsoring organization’s shall agree to pay all fees for all
special city services requested and/or required for the approved event, at a reasonable rate to be determined by
the City Manager, as well as any third-party costs when the City Manager determines that it is reasonably
necessary for the City to contract for additional special City services in conjunction with the parade, public
assembly, or special event. Such costs shall be specifically set out in writing to the applicant, showing the
basis of the costs, to the extent it is possible to do so. In addition, the permittee, event manager, and/or
sponsoring organization shall also agree to pay and shall be responsible to pay for any damage created as a
result of the event.
6.4 Multiple Applications for Same Time and Place: If the City Manager receives more than one (1)
application for an event to be held at the same day and time, the applications filed first in time shall take
precedence. An event shall be considered to be “at the same time” if the event is scheduled to commence
within two (2) hours before or after the holding of another event within the corporate limits of the City. If the
City Manager receives an application for more than one (1) parade, public assembly, or special event for a
single day, the City Manager may set a time for the duration of each event.
6.5 Maximum number of Special Event Permits to be issued in a calendar year . The City Manager, or
Corporate Authorities, shall have the authority to limit the number of special event permits issued in a
calendar year. Upon disapproval by the City Manager and/or Corporate Authorities, based on the limits
expressed herein, any permittee, event manager, and/or sponsoring organization shall be granted an
opportunity to appeal the decision based on the provisions set forth in section 8.0.
6.5.1 “Class A” Special Event Permits – Shall not exceed five (5) permits in a calendar year
6.5.2 “Class B” Special Event Permits – Shall not exceed fifty (50) permits in a calendar year
6.5.3 “Class C” Special Event Permits – Shall not exceed seventy-five (75) permits in a calendar year
6.6 Emergency Vehicle Access: Whenever a permit issued pursuant to this Policy authorizes the closure of a
street, a clear path of not less than ten feet (10’) must be maintained throughout the duration of such event for
the passage of emergency vehicles.
6.7 Other Conditions of Issuance of Permit: The City Manager, or Corporate Authorities, shall have the
authority to impose conditions upon any and all permits issued pursuant to this Policy and to promulgate such
additional rules and regulations, all as he or she or who determines as necessary or desirable for the
implementation of this Policy, including but not limited to compliance with such other applicable provisions
of the City Code, and/or for the health, safety and welfare of City residents. In addition to these and any other
provisions, requirements, and/or exemptions therein, parades, public assemblies, special events, or similar
activities may be subject to the following conditions:
6.7.1 No permit issued under this Policy may authorize the operation of an event for a period longer
than three (3) consecutive days.
6.7.2 No permit issued under this Policy may authorize the operation of an event for a period longer
than sixteen (16) calendar days per year.
7.0 PROCEDURE FOR REVIEW OF APPLICATIONS; LATE APPLICATIONS.
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7.1 The City Manager will assign to each event a City Liaison who will assist the applicant throughout the
application process and will be the primary contact.
7.2 Upon receipt of an application for a permit pursuant to this Policy, the City Manager shall forward the
application to the City Liaison he or she specifically selects for such event. Each applicant will be required to
identify, as the applicant’s primary contact, an event manager to coordinate the application process and
implementation of the event. The event manager will be notified by the City Liaison if the event requires
additional permits, such as, but not limited to, a tent permit, carnival/amusement ride permit, fireworks
permit, electrical permit, or liquor license permit, all of which must be obtained before an event permit will be
issued.
7.3 The City Liaison shall supply the event manager with information or a list of permit requirements or
additional permit application(s), if applicable.
7.4 The City Liaison shall forward copies of the application(s) to the Chief of Police, Fire Chief, Director of
Community Development, the Director of Public Works, Director of Parks and Recreation, and/or any other
departments of the City which may be affected by the event. Following review by each department of the
application(s), the City Liaison shall coordinate the comments and recommendations from the various
departments and submit such information and make recommendations to the City Manager or Corporate
Authorities. Each City department shall analyze the application in light of:
7.4.1 All proposed permittee and related vendor license applications accompanying the application for
permit, which applications and licensing regulations shall comply in all respects with the
regulations contained in the City Code or City Charter, unless specifically approved by the
Corporate Authorities;
7.4.2 Food vendors must submit proof of a valid permit issued or concurrence by the applicable County
health department;
7.4.3 The proposed permittee and proposed liquor vendors, if any, must submit liquor license
application(s) complying with all of the requirements of this Policy;
7.4.4 All proposed activities, event elements, support structures and/or other items related to the
organization, facilitation of the event must comply in all respects with the regulations contained
within a special provision, ordinance, agreement, special use permit, or other document of
covenants governing the use of the proposed property to be utilized for the parade, public
assembly, special event or similar activity; and
7.4.5 Tax Exempt Letter (not applicable to a residential neighborhood block party): If the permittee or
sponsoring organization is a not-for-profit organization, a copy of the tax exempt letter for the
organization must be provided.
7.5 After receipt and consideration of the recommendations form all other department heads, the City Liaison
shall make a recommendation to the City Manager on the classification of the event.
7.6 For “Class B” and “Class C” special vents, the City Manager shall consider said recommendations, and issue
his or her approval or disapproval of an application for permit, based upon a review and consideration of the
written recommendations and/or objections of the appropriate Village departments and that of the City
Liaison.
7.7 For “Class A” special events, or for other considerations contained within this subsection, the City Manager
shall consider said recommendations and shall distribute to the Corporate Authorities copies of the application
and the recommendations of the City Liaison and department heads, together with said City Manager’s
recommendation for events:
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7.7.1 Which will require use of a portion of certain property in Market Square; and
7.7.2 Which will require use of a portion of certain property in Forest Park;
7.7.3 Which will substantially interfere with traffic in the area;
7.7.4 Which will require a sufficient number of police or medical/EMS personnel to provide adequate
police protection, traffic control, crowd control, or medical/EMS support for participants as well
as spectators;
7.7.5 Which will subject surrounding neighborhoods to an elevated degree of noise, littering or parking
difficulties, or other adverse conditions in light of the character of the neighborhood; and
7.7.6 Which will require any other additional special City services.
7.8 The City Manager and/or the Corporate Authorities, as applicable to the case, will provide written approval or
disapproval of said application for an event permit and/or may impose in writing any general or special
conditions with which the applicant, proposed permittee, the event manager, and the sponsoring organization,
if any, must comply. The permit, once issued by the City, is nontransferable and can only be used on the
designated dates and times as approved.
7.9 Late Applications: The City Manager, or the Corporate Authorities, in his or her and/or their sole discretion,
when good and compelling cause is shown, may consider an application under the Policy which is filed less
than the required period before the date of the parade, public assembly, special event, or similar activity that is
proposed to be conducted. Said consideration, review and/or approval may be subject to additional fees, as
set forth in the City’s Fee Ordinance.
8.0 SPECIAL CITY SERVICES.
8.1 General: The City may require special City services be provided for the parade, public assembly, special
event, or similar activity. The determination of whether special City services shall be required shall be based
upon the nature of the event and related activities, safety of the participants, inconvenience to the public, the
location of the event, the expected vehicular and pedestrian traffic and congestion, the estimated attendance
density of the area, size of the area, number of street closures, affected intersections and the public facilities
required, or other provisions set forth herein within Subsection 6.1 of this Policy. The City Manager will
have final authority, based on recommendations provided by the City Liaison or department heads, to
determine the level, quantity, and location of special City services that will be required for the event.
8.2 Compensation for Special City Services: The City may require City personnel including Police, Fire,
Public Works, Community Development and/or Parks and Recreation employees to attend the event. The
cost of all special City services involved in advance of, during and after the day(s) of the event may be
charged to the applicant, proposed permittee, the event manager, and/or the sponsoring organization, except
this requirement shall not be applicable to the exemptions set forth herein Section 5.0 of this Policy. The City
may determine the amount of personnel necessary to ensure the safety of participants, minimize
inconvenience to City residents, ensure the success of the event, and reduce public liability exposure to the
applicant, proposed permittee, the event manager, and/or the sponsoring organization and the City. Prior to
the event, the City will provide the event manager, permittee, and/or sponsoring organization an estimate of
costs for such special City services. A final invoice will be transmitted to the applicant, permittee, the event
manager, and/or the sponsoring organization reflecting the actual special City services provided for the event
within thirty (30) days after its completion.
9.0 FEES.
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9.1 General: All application fees or deposits for a permit, or any other required permit(s) for such event, are non-
refundable. Once an event has commenced, and regardless of whether said permit has been suspended or
revoked, all permit and/or license fees paid for such event are non-refundable, and the applicant, the
permittee, the event manager, and the sponsoring organization, if any, are and shall be obligated to reimburse
the City for all costs incurred by the City for provision of any special City service therefor. Permit fees
and/or license fees shall be those amounts established by the Corporate Authorities from time to time in the
Annual Fee Ordinance the City Code.
9.2 Cash deposits shall be paid at the time of application submittal, and in accordance with subsection 4.3 of this
Policy.
9.3 Permit fees, or fees for special City services, shall be paid within thirty (30) days of the end date as indicated
in the permit.
10.0 DUTIES OF PERMITTEE. All permittee(s), event manager(s), and sponsoring organization(s) under this
Policy shall comply with all permit directions and conditions and with all applicable statutes, Codes, ordinances and
rules and regulations. One of the authorized and responsible leaders of the organization conducting the parade, public
assembly, special event, or similar activity shall carry the permit issued pursuant to this Policy under their person
during the conduct of the event.
11.0 FEE WAIVER; HARDSHIP REQUEST. Permit fees, including but not limited to those related to raffle(s),
liquor license(s), etc. shall not be waived unless specifically authorized in writing by the Corporate Authorities and/or
unless such authority to waive any fees is granted by the Corporate Authorities to the City Manager. If an applicant,
permittee, and/or sponsoring organization, for an event that has been classified as a “Class A” special event, requests
a waiver of permit fees, fees for special City services, or other fees related to the event, approval by the Corporate
Authorities of such waiver of City fees shall be required. If an applicant, permittee, and/or sponsoring organization,
for an event that has been classified as a “Class B” special event or is a City non-sponsored community event,
requests a waiver of permit fees, fees for special City services, or other fees related to the event, approval by the City
Manager shall be required. In reviewing an applicant, permittee, and/or sponsoring organization’s request for a
waiver of fees or hardship request, the City may consider the following criteria:
11.1 The event is open to the public and is non-discriminatory;
11.2 The event provides significant economic, cultural and social benefit to the City;
11.3 The event has a limited impact on the community character or surrounding neighborhoods;
11.4 The event has a limited impact on the economic costs or use of special City services;
11.5 The event provides an economic benefit to the community; and
11.6 Any other criteria which may provide the City Manager or Corporate Authorities a reasonable ability to
grant such fee waiver or hardship request.
12.0 SUSPENSION OR REVOCATION OF PERMITS.
12.1 The City Manager may at any time suspect or revoke a permit if the operation or conduct of the event is
in violation of any conditions, rules, and/or regulations imposed on the permit, any applicable provisions of
the City Code or any other applicable law, or if, in the judgment of the City Manager, such revocation is
necessary to preserve the health or safety of the public. When circumstances permit, the permittee, the event
manager, and/or the sponsoring organization shall be given such notice as is possible and an opportunity to be
heard prior to such suspension or revocation. In addition, the City Manager is authorized to suspend or
revoke a permit if he or she finds:
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12.1.1 That the application for the permit is incomplete and/or contains any false, fraudulent or
misleading material statement;
12.1.2 That the applicant, permittee, event manager, and/or sponsoring organization have made any
false, fraudulent or misleading material statement, or has been convicted of perpetrating a fraud
upon any person, whether or not such fraud was perpetrated in the course of conducting any
business in the City; or that the applicant, permittee, and/or event manager has committed a
felony; or
12.1.3 That the applicant, permittee, event manager, and/or the sponsoring organization have conducted
any activities in the City in an unlawful manner or in such a manner as to constitute a breach of
the peace or a menace to the health, safety or general welfare of the public.
13.0 DENIAL OF PERMIT; APPEAL:
13.1 Upon disapproval by the City Manager, and/or the Corporate Authorities as herein provided, of an
application for a permit pursuant to this Policy, the City Manager shall deny issuance of such permit and
forward written notification thereof to the applicant by regular U.S. Mail, e-mail, or by facsimile
transmission. For purposes of this Policy, such notification shall be deemed received three (3) days after
mailing such notification to the applicant at the applicant’s address shown on the respective application, or at
the time of facsimile or e-mail transmission to the applicant.
13.2 Any person aggrieved by a decision of the City Manager shall have the right to appeal that decision to the
Corporate Authorities, provided that such appeal is in writing and is filed with the City Clerk within ten (10)
days of the applicant’s receipt of the notification of denial by the City Manager.
13.3 The Corporate Authorities shall set a time and place for a hearing on such appeal and notice of such
hearing shall be given in writing to the appellant by regular U.S. Mail.
13.3.1 The Applicant shall have the right to be represented at such hearing by counsel at the appellant’s
expense.
13.3.2 At a hearing conducted under this subsection, all interested persons, including but not limited to
the proposed permittee, community residents, and representatives of community groups, shall be
given an opportunity to be heard.
13.3.3 The Corporate Authorities shall also accept any relevant written testimony or documentation
regarding the proposed event.
13.3.4 The decision and order of the Corporate Authorities on such appeal shall be final.
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Robert R. Kiely, Jr.
City Manager
Created 3-15-2001
Rev. 10-2015
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