CITY COUNCIL 2017/05/01 Agenda (2)THE CITY OF LAKE FOREST
CITY COUNCIL AGENDA
Monday, May 1, 2017, Immediately following the First Session
City Hall Council Chambers
CALL FOR ORGANIZATION OF THE 2017-2018 CITY COUNCIL
FORMER MAYOR HOWARD KERR ADMINISTERS THE OATH OF OFFICE TO:
Mayor-Elect—Robert T.E. Lansing
CITY CLERK MARGARET BOYER ADMINISTERS THE OATH OF OFFICE TO:
First Ward Alderman-Elect - - James. E. Morris
Second Ward Alderman-Elect - - Melanie Rummel
Third Ward Alderman-Elect - - Jack Reisenberg
Fourth Ward Alderman-Elect - - Raymond Buschmann
CALL TO ORDER AND ROLL CALL
Honorable Mayor, Robert Lansing
Prudence R. Beidler, Alderman First Ward Stanford Tack, Alderman Third Ward
James E. Morris, Alderman First Ward Jack Reisenberg, Alderman Third Ward
Timothy Newman, Alderman Second Ward Michelle Moreno, Alderman Fourth Ward
Melanie Rummel, Alderman Second Ward Raymond Buschmann, Alderman Fourth Ward
ELECTION AND APPOINTMENT OF CITY OFFICERS
1. ELECTION BY THE CITY COUNCIL AND APPOINTMENTS BY THE MAYOR AS REQUIRED BY
CHARTER AND CITY CODE
City Treasurer Elizabeth A. Holleb
City Supervisor Robert R. Kiely, Jr.
City Marshal & Collector Karl Walldorf
City Attorney Victor Filippini
City Clerk Margaret Boyer
City Surveyor and Engineer Gewalt Hamilton Associates
COUNCIL ACTION: Approve the Mayors Appointments
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Monday, May 1, 2017 Second Session City Council Agenda
REPORTS OF CITY OFFICERS
1. COMMENTS BY MAYOR
A. RESOLUTION OF APPRECIATION FOR WARD 1 ALDERMAN CATHERINE WALDECK
A copy of the Resolution can be found on page 10
COUNCIL ACTION: Approve the Resolution
B. RESOLUTION OF APPRECIATION FOR WARD 2 ALDERMAN GEORGE PANDALEON
A copy of the Resolution can be found on page 11
COUNCIL ACTION: Approve the Resolution
C. RESOLUTION OF APPRECIATION FOR WARD 4 ALDERMAN MICHAEL ADELMAN
A copy of the Resolution can be found on page 12
COUNCIL ACTION: Approve the Resolution
D. RESOLUTION OF APPRECIATION FOR MAYOR DONALD P. SCHOENHEIDER
A copy of the Resolution can be found on page 13
COUNCIL ACTION: Approve the Resolution
E. 2017-2018 Board and Commission Appointments/Reappointments
BUILDING REVIEW BOARD
NAME OF MEMBER APPOINT/REAPPOINT WARD
James Diamond Reappoint 3
Robert Reda Reappoint 1
Ross Friedman Reappoint 4
Ted Notz Reappoint as Chair 2
BOARD OF POLICE AND FIRE COMMISSIONERS
NAME OF MEMBER APPOINT/REAPPOINT WARD
Matt Davis Reappoint n/a
Greg Nikitas Reappoint n/a
Steve Kernahan Reappoint n/a
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Monday, May 1, 2017 Second Session City Council Agenda
BOARD OF TRUSTEES POLICE PENSION FUND
NAME OF MEMBER APPOINT/REAPPOINT WARD
Jay Trees Reappoint n/a
Colleen Chandler Reappoint 2
CEMETERY COMMISSION
NAME OF MEMBER APPOINT/REAPPOINT WARD
Patrick Looby Reappoint 4
Dennis O’Brien Reappoint as Chair 1
David Hooke Reappoint 3
CROYA
NAME OF MEMBER APPOINT/REAPPOINT WARD
Jennifer Durberg Reappoint 2
Jennifer Riley Reappoint 3
ELAWA FARM FOUNDATION
NAME OF MEMBER APPOINT/REAPPOINT WARD
Carolyn Merfeld Appoint 3
Megan Morris Appoint 4
Nick Peters Appoint 3
GORTON COMMUNITY CENTER
NAME OF MEMBER APPOINT/REAPPOINT WARD
Sally Downey Reappoint 1
Stephen Goldman Reappoint 3
HISTORIC PRESERVATION COMMISSION
NAME OF MEMBER APPOINT/REAPPOINT WARD
Janet Gibson Appoint 3
Carol Gayle Reappoint 1
Robert Alfe Reappoint 4
LEGAL COMMITTEE
NAME OF MEMBER APPOINT/REAPPOINT WARD
Jason Maxwell Reappoint 4
Ken Weinberger Reappoint 2
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Monday, May 1, 2017 Second Session City Council Agenda
LIBRARY BOARD
NAME OF MEMBER APPOINT/REAPPOINT WARD
Andrea Lemke Appoint 1
Ron Levitsky Reappoint 4
Todd Puch Reappoint 3
PARKS & RECREATION BOARD
NAME OF MEMBER APPOINT/REAPPOINT WARD
Melanie Walsh Appoint 1
Charles Kohlmeyer Reappoint as Chair 4
Shannon Maguire Reappoint 3
PLAN COMMISSION
NAME OF MEMBER APPOINT/REAPPOINT WARD
Louis Pickus Appoint (liaison to ZBA) 2
Michael Freeman Reappoint 4
Rosemary Kehr Reappoint 2
Guy Berg Reappoint 2
SENIOR RESOURCE COMMISSION
NAME OF MEMBER APPOINT/REAPPOINT WARD
Steve Potsic Reappoint as Chair LB
Thomas Sullivan Reappoint 2
MaryJo Davis Reappoint LB
ZONING BOARD OF APPEALS
NAME OF MEMBER APPOINT/REAPPOINT WARD
Lisa Nehring Appoint 3
Richard Plonsker Reappoint 2
A copy of Volunteer Profile sheets for new appointments begins on page 14.
COUNCIL ACTION: Approve the Mayors Appointments and Reappointments
F. Approval of a Resolution of Appreciation for Retiring Members of Boards and
Commissions as follows:
BOARD, COMMISSION OR COMMITTEE NAME OF MEMBER(S)
BUILDING REVIEW BOARD Michael Bleck
CROYA Alan Hender, Rebecca Quackenbush
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Monday, May 1, 2017 Second Session City Council Agenda
GORTON John Looby
HISTORIC PRESERVATION COMMISSION Susan Athenson
LIBRARY Lynn Casper
PLAN COMMISSION/ZBA Lloyd Culbertson
ELAWA Samuel Henry, Patricia Moore
A copy of the resolution can be found on page 29.
COUNCIL ACTION: Approve the Resolution
G. Approval of Liaison position to Lake Forest Open Lands.
Background information can be found on page 30.
COUNCIL ACTION: Approve the Liaison position
H. Announcement of City Council Committee Appointments.
A copy of the appointments can be found on page 32.
2. COMMENTS BY CITY MANAGER
3. COMMENTS BY COUNCIL MEMBERS
4. OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS
5. ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approval of the Regularly Scheduled Meetings of the Lake Forest City Council
for the year 2018
A copy of the schedule can be found beginning on page 33.
COUNCIL ACTION: Approve the Schedule
2. Authorization for the City Manager to enter into an Agreement with William A.
Schelhas in an Amount not to exceed $45,750 for Professional Services Related
to the Operation of the City’s Public, Educational and Government Access
Cable Services
STAFF CONTACT: Mike Strong, Assistant to the City Manager (810-3680)
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Monday, May 1, 2017 Second Session City Council Agenda
PURPOSE AND ACTION REQUESTED: City staff is requesting that the City Council authorize the
City Manager to enter into an agreement with William A. Schelhas (“Contractor”) in an
amount not to exceed $49,750 to provide public, educational and governmental (“PEG”)
cable access television support services. This agreement serves to fill the two (2) full time
position vacancies as a result of the restructuring of the Lake Forest Television (“LFTV”) Division.
The restructuring of LFTV, and process for replacing the full time positions was discussed with
the City Council at their March 13, 2017, budget meeting.
BACKGROUND/DISCUSSION: Pursuant to its existing franchise agreement approved in
November 2008 with Comcast of Illinois, the City is provided two (2) non-commercial PEG
cable television broadcast channels for public use to showcase live meetings, public-affairs
shows, lifestyle or community features, and local organization and institution programming.
The City employs two (2) full-time personnel to operate and manage these channels,
programming and content, and facilitate the recording and broadcasting of City Board and
Commission meetings. The total estimated costs for cable services in FY2017 are $235,188.
In light of the growing capital and operational expenses associated with providing these
services, in 2013 the City began conversations with six (6) surrounding communities to explore
the possibility of working collaboratively to uncover potential cost savings, improve service
quality, and grow PEG cable operations within a more regionalized context. This type of
analysis is not an uncommon practice for The City to undertake, as many services are
periodically monitored, reviewed, and evaluated for alternative service delivery potential
(e.g. privatization, outsourcing, and shared service).
This particular shared service study, has taken a great deal of time – mostly attributable to the
complexity of each entity owning different equipment, employing staff in various models (i.e.
full-time, part-time, contractual), and performing a range of functions. As the remaining
communities continued conversations into 2016, it was found that a shared service model or
consortium served by a central community “hub” would not be a viable option, as it would
require significant capital investment to increase channel capacity at the site, new fiber
cabling to re-route broadcast transmission lines from each community, and new personnel to
manage a more combined, complex meeting and program schedule.
In fall 2016, the City ultimately determined it was appropriate to discontinue its focus on a
regionalized shared service model, and explore ways it could contain equipment and
operational expenses internally. Toward this end, City staff is recommending a restructuring of
LFTV by eliminating two full-time positions, and engaging an independent contractor to fill the
vacancies. This recommendation is being made on the basis of value, cost, and proposed
service modifications.
First, we have concerns about the current cable environment and how drastically
communications have changed since PEG programming and Cable Access Studios were
originally launched through cable franchise agreements. This concern is supported by results
from the recent Community-wide Survey. Since 2011, the percentage of individuals who
occasionally or frequently viewed LFTV (Channels 17 or 19) as a minor or major source of
information, dropped from 47% to 27%. Additionally, 72% of respondents in 2016 indicated it
was not a source of information at all; an increase of nearly 20% from 2011 (53%) [This ranked
it as the lowest rated news source by importance in 2016].
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Monday, May 1, 2017 Second Session City Council Agenda
Second, the financial analysis and survey conducted as part of the shared service exploration
indicates that The City of Lake Forest is spending approximately $225,000 annually on cable
services which ranks the highest among the potential consortium communities. The average
annual expense from 2016 among the six communities was $33,058. The cost variance is due
primarily to the fact that The City of Lake Forest is the only community with dedicated full-time
personnel to these services. Most communities pay a flat contractual rate for each meeting
that is broadcast and hourly rates for PEG channel support and programming. Additionally,
their costs are further constrained as a result of producing and broadcasting two to three
times less meetings on average per year than The City of Lake Forest.
Lastly, recent recommendations to reduce special outside programming and eliminate live
broadcasting of various Boards and Commission meetings will result in a reduction of work
hour demand for LFTV. As proposed and beginning June 1, 2017, the Building Review Board,
Historic Preservation Commission, Zoning Board of Appeals and the Parks & Recreation Board
meetings will adopt a new format and no longer be produced or broadcast. Except for issues
with wide community interest. Additionally, outside programming support for various
community organizations, including taping and recording special events, public service
announcements, and programs will no longer be facilitated or subsidized by The City of Lake
Forest.
Moving toward a contractual arrangement for the broadcast and production of City Council
and Plan Commission meetings and support to outside groups, not only presents a more cost-
effective approach, but ensures time is spent more efficiently to support core PEG functions
for The City of Lake Forest.
BUDGET/FISCAL IMPACT: The cost of the current fulltime positions for LFTV is $211,449 for total
compensation, with a total estimated budget of $225,648. The estimated cost of the
contractual employee, based on a conservative estimate of hours needed for the upcoming
year, is $45,750, resulting in a savings of $179,898.
Beginning on page 34 of your packet is a copy of the Agreement with the Contractor.
Additionally, a news release has been included on page 39 announcing format changes to
the Board and Commission meetings and resulting restructuring of LFTV.
COUNCIL ACTION: Authorization for the City Manager to Enter Into an Agreement, in
Substantial Conformance with the Attached, Between The City of Lake Forest and William A.
Schelhas in an Amount Not to Exceed $45,750 for the Purpose of Operating the City’s Cable
Services.
COUNCIL ACTION: Approval of the two (2) Omnibus items as presented
6. ORDINANCES
7. NEW BUSINESS
1. Consideration of an Ordinance Authorizing the Issuance of General Obligation
Bonds, Series 2017 (First Reading)
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Monday, May 1, 2017 Second Session City Council Agenda
PRESENTED BY: Elizabeth Holleb, Finance Director (847-810-3612)
PURPOSE AND ACTION REQUESTED: Staff requests approving the first reading of an ordinance
authorizing issuance of 2017 general obligation bonds.
BACKGROUND/DISCUSSION: In order to fund planned improvements to the City’s Water
Treatment Plant, the Five Year Capital Improvement Program anticipates the issuance of
general obligation bonds in Fiscal Year 2018 of $9.3 million in net proceeds. Including
issuance costs, it is currently projected that the issue will be $9.45 million.
Attached is the draft official statement (page 40) which has been submitted to Moody’s
Investors Service with a request for a rating. A rating review is scheduled to be conducted by
Moody’s with Finance Director Elizabeth Holleb on April 27.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
Finance Committee 4/17/17 Reviewed draft bond ordinance.
Finance Committee 11/14/16
Discussion of various financing options
for Water Treatment Plant project.
Finance Committee 1/19/16
City Council Workshop 7/27/15
Finance Committee 3/9/15
Public Works Committee 2/11/15
Public Works Committee 12/10/14
BUDGET/FISCAL IMPACT: The interest rate on the bond issue will be determined at the online
bid auction scheduled for May 15. Debt service on the bond issue is scheduled through
December 2037 and will be paid from revenues generated by the water utility. The bonds will
be callable in whole or in part on or after December 15, 2025.
COUNCIL ACTION: Approval of first reading of the bond ordinance (page 90). An online bid
will occur on Monday, May 15. At the May 15 City Council meeting, a final bond ordinance
reflecting results of the bid auction will be presented for City Council consideration for second
reading and granting of final approval.
8. ADDITIONAL ITEMS FOR COUNCIL DISCUSSION
9. ADJOURNMENT
Office of the City Manager April 27, 2017
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Monday, May 1, 2017 Second Session City Council Agenda
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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{00046997.DOCX}
Lake Forest Open Lands Association City Liaison Role
March 7, 2017
Per Section 7 Paragraph A of the 9/15/15 Master Land Transfer Agreement (MLTA) between
The City of Lake Forest and Lake Forest Open Lands Association, it is agreed that an appointed
LFOLA/City liaison position be established.
Section 7 of the MLTA outlined the spirit of such a cooperative position as follows:
Section 7: Continued Cooperation.
A. In General.
The Parties agree that each of their interests will be advanced by their continued cooperation in
connection with matters relating to open space in Lake Forest. To this end, the Parties will
examine other land holdings that each controls for purposes of determining whether further
conveyances between the Parties will enhance the efficient and cost-effective management of
open spaces in Lake Forest. Additionally, the Parties shall establish mutually acceptable terms
for a formal arrangement whereby the Mayor (or the Mayor's designee) of the City shall act as a
liaison to the Association to enhance communication, cooperation, and coordination, of planning
activities between the City and the Association.
Liaison Position Definition:
The liaison is a City representative who maintains an independent, neutral and critical connection
between the City of Lake Forest (City) and Lake Forest Open Lands Association (LFOLA). The
liaison shall be proposed and appointed by the Mayor in consultation with the president or
chairman of Lake Forest Open Lands Association. The assignment of the position begins
annually in January. The primary role of the liaison is to communicate and coordinate with
LFOLA concerning positions and activities of LFOLA and the City on matters of mutual interest
and to accurately represent and report the positions and activities of LFOLA through direct and
clear lines of contact and communication with the City. It is agreed by both parties that sharing
regular updates of LFOLA activities and initiatives with the City will result in better
coordination of programmatic efforts as well as increased efficiency for both parties.
Responsibilities
1. Facilitate communication between both parties in regard to programmatic and/or land-related
activities of each organization. Both parties will establish a regular system of update meetings,
conference calls or emails so that the liaison can stay informed about and communicate with
each party.
2. To share non-confidential information, questions and feedback between the two parties.
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{00046997.DOCX}
3. To consider if certain discussions from update meetings should be expanded to other parties,
and in what manner.
4. Identify potential opportunities for collaboration between parties and initiate/facilitate
conversations on these opportunities.
Communication Process
In the spirit of the decades-long collaborative relationship between the City and LFOLA, an
informal schedule of meetings to discuss new and ongoing matters of interest will be agreed
upon at the beginning of each calendar year that may be revised as needed to timely address
potential opportunities and to discuss ongoing matters. These meetings will include the liaison,
LFOLA president, LFOLA chairman, and/or other members of LFOLA as appropriate depending
upon the subject matter to be discussed. Conference calls, emails and written summaries also
may be used to supplement any in-person meeting schedule in order to maintain timely, clear and
effective communications.
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LAKE FOREST CITY COUNCILCommittee and Liase AppointmentsMay 2017 - April 2018Standing CommitteesRobLansingPrudenceBeidlerRayBuschmannMichelleMorenoJedMorrisTimNewmanJackReisenbergMelanieRummelStanfordTackWard14412323FinanceX X X ChairXXXXPersonnel, Comp & AdminChairXXProperty & Public LandsX X ChairPublic WorksX X ChairAd Hoc CommitteesGolf AdvisoryX ChairMarketing of LFChairCity Council LiaisonsAudit CommitteeXBusiness & CommerceXCivic Beautification Committee ChairCommunity CommunicationsFounders Council (LF College) X XGovernments: Federal, State & Local XHousing TrustLegal ServicesXLF Open Lands XParks & RecreationXPlanning & Preservation XPublic Safety XSenior Services XShared Fire Services XYouth Services X Term Limit May of: 2021 2020 2023 2020 2023 2022 2019 2023 20184/21/201732
2018 City Council and Finance Committee Dates
** = This date represents a change from the traditional dates, due to holiday or other conflicts
**January 2, 2018 MUNICIPAL
SERVICES
BUILDING
6:30 Workshop meeting
**January 16, 2018 COUNCIL
CHAMBERS FC 6:30 P.M. CC to follow
immediately after
February 5, 2018 COUNCIL
CHAMBERS
CC 6:30 P.M.
**February 20, 2018 COUNCIL
CHAMBERS
CC 6:30 P.M.
March 5, 2018 COUNCIL
CHAMBERS
CC 6:30 P.M.
March 12, 2018 MUNICIPAL
SERVICES
BUILDING
Operating Budget
Workshop 5:00 P.M
March 19, 2018 COUNCIL
CHAMBERS
CC 6:30 P.M.
April 2, 2018 COUNCIL
CHAMBERS
CC 6:30 P.M.
April 16, 2018 COUNCIL
CHAMBERS
FC 6:30 P.M. CC to follow
immediately after
May 7, 2018 COUNCIL
CHAMBERS
CC 6:30 P.M.
May 21, 2018 COUNCIL
CHAMBERS
CC 6:30 P.M.
June 4, 2018 COUNCIL
CHAMBERS
CC 6:30 P.M.
June 18, 2018 COUNCIL
CHAMBERS
CC 6:30 P.M.
July 2, 2018 MUNICIPAL
SERVICE
BUILDING
6:30 P.M. Workshop Meeting
July 16, 2018 COUNCIL
CHAMBERS FC 6:30 P.M. CC to follow
immediately after
August 6, 2018 COUNCIL
CHAMBERS
CC 6:30 P.M.
August 20, 2018 NO
MEETING
NO MEETING
**September 4, 2018 COUNCIL
CHAMBERS
CC 6:30 P.M.
September 17, 2018 MUNICIPAL
SERVICES
BUILDING
6:30 Workshop Meeting
October 1, 2018 COUNCIL
CHAMBERS
CC 6:30 P.M.
October 15, 2018 COUNCIL
CHAMBERS
FC 6:30 P.M.CC to follow
immediately after
November 5, 2018 COUNCIL
CHAMBERS
CC 6:30 P.M.
**November 13, 2018
MUNICIPAL
SERVICES
BUILDING
Capital Budget Workshop
5:00 PM
November 19, 2018 COUNCIL
CHAMBERS
CC 6:30 P.M.
December 3, 2018 COUNCIL
CHAMBERS
CC 6:30 P.M.
December 17, 2018 NO
MEETING
NO MEETING
Meeting dates highlighted in blue, represent Council Workshops
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William A. Schelhas
INDEPENDENT CONTRACTOR AGREEMENT
This Independent Contractor Agreement (the "Agreement") is made and entered into
this _____ day of _______________, 20___, by and between The City of Lake Forest
(the "City"), an Illinois local government in the County of Lake, Illinois, and the
undersigned Contractor, William A. Schelhas ("Contractor"), a sole-proprietor, and
collectively known as (the “Parties”). In consideration of the mutual covenants and
promises contained in this Agreement, the City and Contractor hereby agree as follows:
1. RETENTION OF CONTRACTOR. The City agrees to retain Contractor to
perform the services described on Exhibit A, attached hereto and made a part
hereof (the "Services"). Contractor accepts such appointment and agrees to
provide the Services in a professional and appropriate manner on an
independent contractor basis. Within 60 days of retention the City Manager or
his/her designee and Contractor will have agreed and identified goals that
shall be completed during the term of this Agreement (the "Contract
Objectives"). The Contractor shall provide monthly updates to the City
Manager or his/her designee relating to the Services and Contract Objectives.
This Agreement shall not create an employment, partnership, agent, or joint
venture relationship.
2. CONTRACTOR DUTIES.
(a) Contractor will provide and continue to provide the Services during
the term hereof. The City and Contractor agree that Contractor retains the
sole right to determine the manner and means by which services will be
performed for the City, pursuant to this Agreement. Notwithstanding the
foregoing, Contractor is expected, at all times, to act in a professional manner
while performing services for the City pursuant to this Agreement, and the
City retains the right to review and inspect the Contractor's performance of
the Services to ensure that Contractor is providing the highest quality services
to the City and its residents.
(b) The City may, for convenience and ease of identification, refer to
Contractor and/or William Schelhas as the City's "Cable TV Media
Coordinator." Notwithstanding such reference, the Contractor shall be or hold
himself out as an officer, official, or employee of the City. Nor shall
Contractor have actual or apparent authority to bind the City in any manner
whatsoever.
3. TERM. The term of this Agreement shall commence on the Effective Date, or
a date agreed to between the Parties, and end April 30, 2018, provided,
however, this Agreement may be terminated at any time by either party upon
ninety (90) days prior written notice.
4. COMPENSATION. Contractor will be compensated for the services
performed under this Agreement at rates for services set in Contractor
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William A. Schelhas
Proposal in Exhibit B, and will receive payment no more than twice per
month, only after submitting an invoice to the City for services rendered. The
City shall issue a 1099 or equivalent form as required by Federal and State
regulations, and Contractor shall be fully and solely responsible for all costs
and expenses incident to the services furnished to the City under this
Agreement.
As an independent contractor, Contractor shall not be entitled to overtime
premiums or to benefits of any kind, including without limitation, deferred
compensation, 457, pension contributions, health insurance, life insurance,
workers’ compensation benefits, and short-term or long-term disability
benefits offered by the City to its employees.
5. WORK SCHEDULE. Contractor shall devote as much time as may be
reasonably necessary to perform the Services in accordance with this
Agreement. Notwithstanding the foregoing, it is expected that Contractor will
at times be required to perform services during evenings and weekends in
order to meet the needs of the City and the identified goals. The Contractor
shall attend various meetings as directed by the City Manager or his/her
designee.
6. CONFIDENTIAL INFORMATION. Contractor recognizes that certain
confidential knowledge or information (Confidential Information) might be
obtained by Contractor and Kelsey in the course of performing the Services
hereunder including, but not limited to, personal information concerning the
City’s residents. Contractor does hereby agree that all such Confidential
Information will be forever held confidential by Contractor, and not be
disclosed to any party whatsoever during the term hereof and at all times
thereafter. Upon termination of this Agreement, Contractor shall return to the
City all documents, notes, or other tangible property that contain Confidential
Information that is in the possession of Contractor.
7. INDEMNITY. Contractor agrees to indemnify and hold harmless the City, and
its Mayor, Aldermen, Appointed Officials, Employees, Agents,
Representatives, and Attorneys, in both their official and individual capacities,
from and against any and all liability, losses, payments, expenses, and tax
claims (including, without limitation, attorneys' fees and costs, interest and
penalties) incurred by or imposed against the City or its Mayor, Aldermen,
Appointed Officials, Employees, Agents, Representatives, and Attorneys,
arising out of or in any way related to any act or failure to act by Contractor
(or any of Contractor's agents, employees, or partners), including, but not
limited to, all claims relating to the injury or death of any person or damage to
any property.
8. NOTICES. All notices under this Agreement shall be in writing and shall be
delivered in person or sent by registered or certified mail, postage prepaid,
return receipt requested, to the parties at their addresses listed below or to
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William A. Schelhas
such address as any party hereto, by written notice to the other party may
designate from time to time. Notices and communications to each Party shall
be addressed to, and delivered at, the following addresses:
Lake
Forest:
The City of Lake
Forest
220 E. Deerpath
Lake Forest, IL 60045
Attn: City Manager
Contractor:
William A. Schelhas
1120 Edington Lane
Mundelein, IL 60060
9. MISCELLANEOUS. No waiver, modification or amendment of this
Agreement shall be valid and enforceable unless it is in writing and signed by
Contractor and the City Manager. This Agreement supersedes all other oral
and written agreements, understandings or communications between the City
and Contractor. This Agreement and any amendments hereto shall be
governed by and construed in accordance with the laws of the State of Illinois
without regard to choice of law principles. Waiver by either party to this
Agreement of any breach or default by the other party of any of the terms and
conditions of this Agreement shall not operate as a waiver of any other
breach or default, whether similar to or different from the breach or default
waived.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year appearing in their respective notary acknowledgements.
Accepted and approved this Accepted and approved this
___ day of _______, 2017 ___ day of _______, 2017
William A. Schelhas The City of Lake Forest
1120 Edington Lane 220 E. Deerpath
Mundelein, IL 60060 Lake Forest IL 60045
By: By:
______________________________ ____________________________
William A. Schelhas Robert R. Kiely, Jr.
City Manager
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William A. Schelhas
EXHIBIT A
Contractor Services and Schedule of Performance
SUMMARY: Contractor shall manage Lake Forest TV, a public access facility operated
by The City of Lake Forest.
ESSENTIAL DUTIES AND RESPONSIBILITIES SHALL INCLUDE, BUT ARE NOT
LIMITED TO, THE FOLLOWING:
Serving as Cable Access Television Media Coordinator, which includes, but is
not limited to, the following duties:
o Oversight of City governmental or “on-site” public meeting broadcasting,
equipment usage and completing program scheduling of programs related
to local government information and community activities;
o Assist with municipal cable communication efforts, including publicizing of
cable programs and activities, developing a programming guide for the
channel, or uploading and managing web service streaming services (e.g.
YouTube, Vimeo, etc.); and
o Oversight of non-City governmental, or “off-site” public meeting recording
and scheduling of playback on City authorized media platforms; and
o General Photography support (i.e. taking photos, minor editing, etc.)
during “on-site” public meetings.
All work hours and leave requests will be conditional on workload being
completed and will be coordinated and approved by the Office of the City
Manager;
Performs routine maintenance and troubleshooting on all video, audio and
computer equipment, and maintains orderly records and files for the video tape
library; and
Coordinates the following: video equipment maintenance and repair; automated
playback system operations; management of uploading meetings for playback on
streaming service or website server (e.g. YouTube, Vimeo, etc.).
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William A. Schelhas
EXHIBIT B
Contractor Proposal of Services
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NEWS RELEASE
For more Information, contact:
Mike Strong, Assistant to the City Manager
847.810.3680
strongm@cityoflakeforest.com
FOR IMMEDIATE RELEASE – MAY 1, 2017
CITY BOARDS AND COMMISSIONS FORMAT CHANGES TO TAKE PLACE
Beginning June 1, 2017, the Building Review Board, Historic Preservation Commission, Zoning Board of Appeals
and the Parks & Recreation Board meetings will adopt a new format. In an effort to conduct more productive
meetings with residents, ensuring more community engagement, the format of these meetings will be modified
to adopt a “workshop” atmosphere. As always, the public is invited to attend the meetings, but the meetings
of these particular boards will no longer be televised and will be held at the Municipal Service Building, 800 N.
Field Drive or City Hall, 220 E. Deerpath. Meeting locations will continue to be listed on agendas and on the
City’s website.
According to the City’s 2016 Community-Wide Survey, only 5% of the respondents listed the cable television
channel as a major source of where residents get public information. The decision to reduce these live
broadcasts will also realize substantial operational financial efficiencies for the City, estimated at $200,000 per
year.
“Based on a recent study conducted by Teska Associates, a workshop setting in a public meeting room is more
desirable for residents than the formal setting of the City Council Chamber. A workshop invites engaging
conversation on the topics at hand,” states City Manager Bob Kiely. He added that “The City of Lake Forest has
been studying the issue for several years with other municipalities searching for the benefits of creating a
consortium, which has not provided a solution. Surrounding communities are taking or have already taken
similar steps to improve transparency and reduce costs.”
Since cable access television was introduced to Lake Forest in the late 1980s, public meetings of these Boards
and Commissions have been broadcasted live from the City Hall Council Chamber.
Special meetings requiring a broader range of public perspective will continue to be broadcast live in the City
Hall Council Chamber, and will be publicized with proper notification. Archived meetings of the Building Review
Board, Historic Preservation Commission, Zoning Board of Appeals and the Parks & Recreation Board will
continue to be available for viewing on the City’s website or YouTube channel, Enjoy Lake Forest. Meetings of
the City Council and the Plan Commission will continue to be televised and remain at City Hall.
# # #
The City of Lake Forest
City Hall
220 East Deerpath
Lake Forest, IL 60045
39
New Issue DRAFT 4/11/17 Investment Rating:
Date of Sale: Monday, May 15, 2017 Moody’s Investors Service …
10:45 – 11:00 A.M., C.D.T. (Open Speer Auction) (Rating Requested)
Official Statement
Subject to compliance by the City with certain covenants, in the opinion of Chapman and Cutler LLP, Chicago, Illinois (“Bond Counsel”), under present law,
interest on the Bonds is excludable from gross income of the owners thereof for federal income tax purposes and is not included as an item of tax preference in computing the
federal alternative minimum tax for individuals and corporations, but such interest is taken into account in computing an adjustment used in determining the federal alternative
minimum tax for certain corporations. Interest on the Bonds is not exempt from present State of Illinois income taxes. See “TAX EXEMPTION” herein for a more complete
discussion. The Bonds are “qualified tax-exempt obligations” under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. See “QUALIFIED TAX-EXEMPT
OBLIGATIONS” herein.
$9,450,000*
CITY OF LAKE FOREST
Lake County, Illinois
General Obligation Bonds, Series 2017
Dated Date of Delivery Book-Entry Bank Qualified Due Serially December 15, 2023-2037
The $9,450,000* General Obligation Bonds, Series 2017 (the “Bonds”), are being issued by the City of Lake Forest, Lake County, Illinois (the “City”). Interest is
payable semiannually on June 15 and December 15 of each year, commencing December 15, 2017. The Bonds will be issued using a book-entry system. The Depository
Trust Company (“DTC”), New York, New York, will act as securities depository for the Bonds. The ownership of one fully registered Bond for each maturity will be
registered in the name of Cede & Co., as nominee for DTC and no physical delivery of Bonds will be made to purchasers. The Bonds will mature on December 15, in the
following years and amounts. Interest is calculated based on a 360-day year of twelve 30-day months.
AMOUNTS*, MATURITIES, INTEREST RATES, PRICES OR YIELDS AND CUSIP NUMBERS(1)
Principal Due Interest Yield or CUSIP Principal Due Interest Yield or CUSIP
Amount* Dec. 15 Rate Price Number(1) Amount* Dec. 15 Rate Price Number(1)
$505,000 ....... 2023 _____% _____% __________ $640,000 ......... 2031 _____% _____% __________
515,000 ....... 2024 _____% _____% __________ 660,000 ......... 2032 _____% _____% __________
530,000 ....... 2025 _____% _____% __________ 685,000 ......... 2033 _____% _____% __________
545,000 ....... 2026 _____% _____% __________ 715,000 ......... 2034 _____% _____% __________
560,000 ....... 2027 _____% _____% __________ 740,000 ......... 2035 _____% _____% __________
575,000 ....... 2028 _____% _____% __________ 770,000 ......... 2036 _____% _____% __________
595,000 ....... 2029 _____% _____% __________ 800,000 ......... 2037 _____% _____% __________
615,000 ....... 2030 _____% _____% __________
Any consecutive maturities may be aggregated into term bonds at the option of the bidder,
in which case the mandatory redemption provisions shall be on the same schedule as above.
OPTIONAL REDEMPTION
The Bonds maturing on or after December 15, 2026, are callable at the option of the City in whole or in part on any date on or after December 15, 2025, at a price
of par and accrued interest. See “OPTIONAL REDEMPTION” herein.
PURPOSE, LEGALITY AND SECURITY
The proceeds of the Bonds will be used: (i) to finance certain capital improvements to the City’s water treatment plant and (ii) to pay the costs of issuance of the
Bonds. See “THE PROJECT” herein.
In the opinion of Bond Counsel, the Bonds are valid and legally binding upon the City and are payable from any funds of the City legally available for such
purpose, and all taxable property in the City is subject to the levy of taxes to pay the same without limitation as to rate or amount, except that the rights of the owners of the
Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting creditors’ rights and by
equitable principles, whether considered at law or in equity, including the exercise of judicial discretion.
This Official Statement is dated May __, 2017, and has been prepared under the authority of the City. An electronic copy of this Official Statement is available
from the www.speerfinancial.com web site under “Debt Auction Center/Official Statements Sales Calendars/Competitive”. Additional copies may be obtained from Ms.
Elizabeth Holleb, Director of Finance, City of Lake Forest, 800 North Field Drive, Lake Forest, Illinois 60045, or from the Municipal Advisor to the City:
(1) CUSIP numbers appearing in this Official Statement have been provided by the CUSIP Service Bureau, which is managed on behalf of the American Bankers Association by S&P Capital IQ, a part of McGraw
Hill Financial Inc. The City is not responsible for the selection of CUSIP numbers and makes no representation as to their correctness on the Bonds or as set forth on the cover of this Official Statement.
*Subject to change.
40
(i)
For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission, this document, as
the same may be supplemented or corrected by the City from time to time (collectively, the “Official Statement”), may
be treated as an Official Statement with respect to the Bonds described herein that is deemed near final as of the date
hereof (or the date of any such supplement or correction) by the City.
The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates,
principal amounts and interest rates of the Bonds, together with any other information required by law or deemed
appropriate by the City, shall constitute a “Final Official Statement” of the City with respect to the Bonds, as that term
is defined in Rule 15c2-12. Any such addendum or addenda shall, on and after the date thereof, be fully incorporated
herein and made a part hereof by reference. Alternatively, such final terms of the Bonds and other information may be
included in a separate document entitled “Final Official Statement” rather than through supplementing the Official
Statement by an addendum or addenda.
No dealer, broker, salesman or other person has been authorized by the City to give any information or to make
any representations with respect to the Bonds other than as contained in the Official Statement or the Final Official
Statement and, if given or made, such other information or representations must not be relied upon as having been
authorized by the City. Certain information contained in the Official Statement and the Final Official Statement may
have been obtained from sources other than records of the City and, while believed to be reliable, is not guaranteed as
to completeness. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT
AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF
THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER
EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE
IN THE AFFAIRS OF THE CITY SINCE THE RESPECTIVE DATES THEREOF.
References herein to laws, rules, regulations, ordinances, resolutions, agreements, reports and other documents
do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by
reference to the particular document, the full text of which may contain qualifications of and exceptions to statements
made herein. Where full texts have not been included as appendices to the Official Statement or the Final Official
Statement they will be furnished on request. This Official Statement does not constitute an offer to sell, or solicitation
of an offer to buy, any securities to any person in any jurisdiction where such offer or solicitation of such offer would
be unlawful.
41
(ii)
TABLE OF CONTENTS
BOND ISSUE SUMMARY ................................................................................................................................................................................. 1
CITY OF LAKE FOREST................................................................................................................................................................................... 2
THE BONDS .................................................................................................................................................................................................. 2
THE CITY ..................................................................................................................................................................................................... 3
Route 60 Corridor Development ............................................................................................................................................................... 3
Central Business District ........................................................................................................................................................................ 5
Looking Forward – Upcoming Developments ............................................................................................................................................... 6
Municipal and Other Governmental Services ................................................................................................................................................ 7
Schools/Hospitals ................................................................................................................................................................................. 9
SOCIOECONOMIC INFORMATION ................................................................................................................................................................... 10
Employment ...................................................................................................................................................................................... 10
Building Permits ................................................................................................................................................................................. 12
Housing ........................................................................................................................................................................................... 12
Income ............................................................................................................................................................................................ 13
Retail Activity ................................................................................................................................................................................... 14
THE PROJECT ............................................................................................................................................................................................... 14
RISK FACTORS ............................................................................................................................................................................................. 15
Construction Risks .............................................................................................................................................................................. 15
Finances of the State of Illinois ............................................................................................................................................................... 15
Local Economy .................................................................................................................................................................................. 16
Declining Equalized Assessed Valuations ................................................................................................................................................... 16
Loss or Change of Bond Rating ............................................................................................................................................................... 16
Secondary Market for the Bonds .............................................................................................................................................................. 16
Continuing Disclosure .......................................................................................................................................................................... 16
Suitability of Investment ....................................................................................................................................................................... 16
Future Changes in Laws........................................................................................................................................................................ 17
Bankruptcy ....................................................................................................................................................................................... 17
DEBT INFORMATION .................................................................................................................................................................................... 17
DEFAULT RECORD ....................................................................................................................................................................................... 19
SHORT-TERM BORROWING ............................................................................................................................................................................ 19
PROPERTY ASSESSMENT AND TAX INFORMATION ........................................................................................................................................... 20
REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES ...................................................................................................... 21
Tax Levy and Collection Procedures ......................................................................................................................................................... 21
Exemptions ....................................................................................................................................................................................... 21
Property Tax Extension Limitation Law ..................................................................................................................................................... 23
Truth in Taxation Law.......................................................................................................................................................................... 23
FINANCIAL INFORMATION ............................................................................................................................................................................ 23
Budgetary Information .......................................................................................................................................................................... 23
Investment Policy ............................................................................................................................................................................... 24
Financial Reports ................................................................................................................................................................................ 25
No Consent or Updated Information Requested of the Auditor .......................................................................................................................... 25
Summary Financial Information .............................................................................................................................................................. 25
EMPLOYEE RETIREMENT AND OTHER POSTEMPLOYMENT BENEFITS OBLIGATIONS ........................................................................................... 29
REGISTRATION, TRANSFER AND EXCHANGE .................................................................................................................................................. 29
Registration....................................................................................................................................................................................... 29
Transfers and Exchanges ....................................................................................................................................................................... 30
TAX EXEMPTION .......................................................................................................................................................................................... 30
QUALIFIED TAX-EXEMPT OBLIGATIONS ......................................................................................................................................................... 32
CONTINUING DISCLOSURE ............................................................................................................................................................................ 33
THE UNDERTAKING ...................................................................................................................................................................................... 33
Annual Financial Information Disclosure.................................................................................................................................................... 33
Reportable Events Disclosure ................................................................................................................................................................. 34
Consequences of Failure of the City to Provide Information ............................................................................................................................. 34
Amendment; Waiver ............................................................................................................................................................................ 35
Termination of Undertaking ................................................................................................................................................................... 35
Additional Information ......................................................................................................................................................................... 35
Dissemination of Information; Dissemination Agent ...................................................................................................................................... 35
OPTIONAL REDEMPTION ............................................................................................................................................................................... 36
LITIGATION ................................................................................................................................................................................................. 36
CERTAIN LEGAL MATTERS............................................................................................................................................................................ 36
OFFICIAL STATEMENT AUTHORIZATION ........................................................................................................................................................ 36
INVESTMENT RATING ................................................................................................................................................................................... 37
UNDERWRITING ........................................................................................................................................................................................... 37
MUNICIPAL ADVISOR ................................................................................................................................................................................... 37
CERTIFICATION ........................................................................................................................................................................................... 37
APPENDIX A - FISCAL YEAR 2016 COMPREHENSIVE ANNUAL FINANCIAL REPORT
APPENDIX B - DESCRIBING BOOK-ENTRY-ONLY ISSUANCE
APPENDIX C - PROPOSED FORM OF OPINION OF BOND COUNSEL
APPENDIX D - EXCERPTS OF FISCAL YEAR 2016 COMPREHENSIVE ANNUAL FINANCIAL REPORT
RELATING TO THE CITY’S PENSION PLANS AND OTHER POSTEMPLOYMENT BENEFITS
OFFICIAL BID FORM
OFFICIAL NOTICE OF SALE
42
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
1
BOND ISSUE SUMMARY
This Bond Issue Summary is expressly qualified by the entire Official Statement, including the Official Notice of Sale and
the Official Bid Form, which are provided for the convenience of potential investors and which should be reviewed in their entirety
by potential investors.
Issuer: City of Lake Forest, Lake County, Illinois (the “City”).
Issue: $9,450,000* General Obligation Bonds, Series 2017.
Dated Date: Date of delivery (expected to be on or about June 5, 2017).
Interest Due: Each June 15 and December 15, commencing December 15, 2017.
Principal Due: Serially each December 15, commencing December 15, 2023 through 2037, as detailed on the
front page of this Official Statement.
Optional Redemption: The Bonds maturing on or after December 15, 2026, are callable at the option of the City in
whole or in part on any date on or after December 15, 2025, at a price of par and accrued
interest. See “OPTIONAL REDEMPTION” herein.
Authorization: The Bonds are being issued pursuant to the home-rule powers of the City under Section 6,
Article VII of the 1970 Constitution of the State of Illinois and a bond ordinance adopted by
the City Council of the City.
Security: The Bonds are valid and legally binding upon the City and are payable from any funds of the
City legally available for such purpose, and all taxable property in the City is subject to the
levy of taxes to pay the same without limitation as to rate or amount.
Investment Rating: The City’s outstanding general obligation bond rating is “Aaa” from Moody’s Investors
Service, New York, New York (“Moody’s”). A credit rating for the Bonds has been
requested from Moody’s. See “INVESTMENT RATING” herein.
Purpose: The proceeds of the Bonds will be used: (i) to finance certain capital improvements to the
City’s water treatment plant and (ii) to pay the costs of issuance of the Bonds. See “THE
PROJECT” herein.
Tax Exemption: Chapman and Cutler LLP, Chicago, Illinois, Bond Counsel, will provide an opinion as to the
federal tax exemption of the interest on the Bonds as discussed under “TAX EXEMPTION”
in this Official Statement. Interest on the Bonds is not exempt from present State of Illinois
income taxes. See also APPENDIX C for the proposed form of Bond Counsel opinion.
Bank Qualification: The Bonds are “qualified tax-exempt obligations” under Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended. See “QUALIFIED TAX-EXEMPT OBLIGATIONS”
herein.
Bond Registrar/Paying Agent: ______________________________, Chicago, Illinois.
Book-Entry Form: The Bonds will be registered in the name of Cede & Co. as nominee for The Depository Trust
Company (“DTC”), New York, New York. DTC will act as securities depository of the
Bonds. See APPENDIX B herein.
Denomination: $5,000 or integral multiples thereof.
Delivery: The Bonds are expected to be delivered on or about June 5, 2017.
Municipal Advisor: Speer Financial, Inc., Chicago, Illinois.
*Subject to change.
43
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
2
CITY OF LAKE FOREST
Lake County, Illinois
Robert T.E. Lansing
Mayor
Council Members
Prue Beidler James E. Morris John R. Reisenberg
Raymond Buschmann Timothy Newman Melanie K. Rummel
Michelle Moreno Stanford Tack
_______________________________
Officials
Robert R. Kiely, Jr.
City Manager
Elizabeth Holleb
Director of Finance
Margaret Boyer
City Clerk
Victor P. Filippini, Jr., Esq.
City Attorney
THE BONDS
The General Obligation Bonds, Series 2017 (the “Bonds”), are being issued pursuant to the home-rule powers
of the City of Lake Forest, Lake County, Illinois (the “City”), under Section 6, Article VII of the 1970 Constitution of
the State of Illinois. The Bonds are issuable pursuant to a bond ordinance adopted by the City Council of the City on
the 15th day of May, 2017 (the “Bond Ordinance”). The Bonds constitute valid and legally binding full faith and credit
general obligations of the City, payable from ad valorem taxes levied on all taxable property in the City, without
limitation as to rate or amount. The Bond Ordinance provides for the levy of ad valorem taxes, unlimited as to rate or
amount, upon all taxable property within the City in amounts sufficient to pay, as and when due, all principal of and
interest on the Bonds. The Bond Ordinance will be filed with the County Clerk of the County of Lake, Illinois (the
“County Clerk”), and will serve as authorization to the County Clerk to extend and collect the property taxes as set
forth in the Bond Ordinance.
44
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
3
THE CITY
The City of Lake Forest (the “City”) is a home-rule municipality located in Lake County approximately 30
miles north of downtown Chicago. It is one of the eight Chicago suburban communities north of Chicago fronting on
Lake Michigan collectively referred to as "the North Shore.” The City's eastern boundary is Lake Michigan from
which the City obtains its public water supply. To the south of the City along Lake Michigan is the former Fort
Sheridan Military Base, the northern portion of which is located within the boundaries of the City of Lake Forest. A
portion of the site remains in the ownership of the Federal government and continues to be used as a military reserve
base. The remainder of the site, 127 acres, is now in the ownership of the Lake County Forest Preserve District and is
preserved open space. The Forest Preserve has completed significant restoration work at this site including the removal
of non-native trees and vegetation, re-grading to establish swales, stabilization and enhancement of the existing ravine,
pond and bluff. Improved public access to Lake Michigan and completion of an interpretive trail were also part of this
project. Today, the former military base is an expansive natural area, with miles of walking trails and beach frontage,
all open to the public. The restored area provides impressive views of Lake Michigan from Sheridan Road found at no
other location on the North Shore. The Forest Preserve, along with neighboring communities, continues to plan for
further restoration of ravines and bluffs, as well as shoreline protection, all along this North Shore corridor.
Like many communities in the Chicagoland area, the 2010 Census reflected a slight decrease in the City’s
population. The 2010 Census indicated a population of 19,375 in the City of Lake Forest. This number is down 3.4%
from the City’s peak population of 20,059 as documented by the 2000 Census. In part, the population loss results from
the closing of Barat College in early 2000. Students living on campus were included in the 2000 Census. The 2010
Census indicated an increase of 443 housing units in the City and a slightly more diverse population living in the
community than at the time of the 2000 Census.
The western boundary of the City is the center of the Illinois Toll Road (I-94), and three interchanges serve the
City. With two commuter railroads, the divided four-lane U.S. Route 41 (Skokie Highway) which connects to the
Edens Expressway on the south and Wisconsin I-94 on the north, scenic Green Bay Road and Sheridan Road, four-lane
Waukegan Road (Illinois Route 43) and the aforementioned Illinois Toll Road, the transportation arteries serving Lake
Forest are abundant.
Long acknowledged to be one of the most prestigious residential communities in the United States, the City is
rich in history. Among the existing structures in the City are residences dating back to 1846, Market Square located at
the core of the City’s Central Business District (which, when constructed in 1916, was reported to be the first shopping
center in the U.S.), many churches and educational institutions, prestigious private clubs and the estates of many of the
nation's most famous private entrepreneurs.
Route 60 Corridor Development
On October 3, 1988, the City voted to annex a 682 acre area at the western edge of the City thereby taking
control of the ultimate development of the large undeveloped area extending to the Illinois Toll Road. As a part of the
pre-annexation agreement, the City and the owners agreed to the development of the 682 acres plus an additional 90
acres already in the City. Today, this area is nearly fully developed and includes Conway Park, a premier corporate
office park; Conway Farms, a planned residential development set on a picturesque golf course and offering attached
and detached single family homes on lots of various sizes; Stonebridge, a 72-unit, maintenance-free residential
development; and Townline Park, a City owned 30+ acre community park developed with baseball diamonds, soccer
fields, a pavilion, playground and extensive walking trail. The build out of both the Conway Farms and Stonebridge
residential developments is complete.
45
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
4
Conway Park office park is nearly built out and includes thirteen office buildings ranging in size from 60,000 to
270,000 square feet. The buildings serve as the corporate headquarters for various companies including Abbott and
Pfizer which both occupy multiple buildings in the office park, Brunswick, Pactiv Reynolds Fram Group, Tenneco
Automotive, Trustmark, ICU Medical and Packaging Corporation of America. Three buildings within the office park
are multi-tenant buildings providing high quality office opportunities for small and medium size businesses including
Akorn, Idex and Omron. In 2004, an important dimension was added to Conway Park with the construction of the
32,000 square foot Lake Forest Graduate School. The Graduate School was formerly located on the campus of Lake
Forest College. The Graduate School building serves as the school’s headquarters and houses both administrative
functions and classrooms with branches at other locations throughout the Chicagoland area. The Graduate School has
formed strong relationships with various corporations, within the park and located elsewhere, and offers management
and leadership training programs in support of those corporations as well as its well respected MBA program. Four
parcels in the office park remain available for development and discussions are underway regarding development of
these parcels. Adding a hotel to Conway Park to support the dynamic corporate businesses located there is a goal that
may soon be realized.
Two additional corporate office buildings, each about 170,000 square feet, are located to the south of Conway
Park, on the south side of Route 60, just east of the Illinois Tollway and together are known as Lake Forest Landmark
Properties. Horizon Pharm and Hoogwert U.S., Inc. are headquartered in these buildings and Abbott occupies portions
of the space as well as its presence in Lake Forest continues to expand beyond the limits of Conway Park. Regus also
occupies space in the Lake Forest Landmark development offering virtual office services, immediately adjacent to the
Tollway, to serve Lake Forest and Lake County.
The National Football League franchise Chicago Bears corporate headquarters, player training center, broadcast
studio, conference center and indoor and outdoor practice fields are located at the north end of Conway Park. This
facility draws players, coaches, season ticket holders, corporate sponsors and the media to Lake Forest. Players and
coaches often make Lake Forest home during their tenure with the Bears. The Chicago Bears have had a long
association with Lake Forest with a practice field located at Lake Forest College before the team’s move to Conway
Park in 2004.
To address uncertainties about the long term use of the remaining property adjacent to Conway Park and the
Chicago Bears facility at the north end of the office park, the City acquired and annexed a 40 acre parcel to complete
the Conway Park area. This parcel was developed with The City of Lake Forest Municipal Services Facility which
opened in August 2009. The facility houses City administrative staff from various departments in a first class office
building. The City’s fleet of vehicles and equipment is also housed at this location in a state of the art garage
supporting the high level of service delivered to the residents of Lake Forest. The City facility also offers public
meeting rooms and an on site training room. Almost 20 acres of the City site has been preserved as open space and
wetlands through a cooperative effort between the City, Lake Forest Open Lands Association and the Lake County
Forest Preserve. The preserved area is now under the stewardship of the Lake County Forest Preserve. Prior to
transferring the property to the Forest Preserve, the City took the lead on various site improvements most notably,
reclamation of a barrow pit resulting from the construction of the Tollway many years ago. This area is now re-created
as a series of shallow wetlands providing for enhanced water quality as water flows from a large tributary area west of
the Tollway toward the Middlefork Savanna. This area is improved with walking trails and bridges as an amenity for
employees of Conway Office Park and for the public. Wildlife abounds in the area.
46
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
5
In addition to the development of the corporate office park, other development activity continues in the Lake
Forest Route 60 Corridor. Amberley Woods, a 40 acre development comprised of 90 residential condominium units
and 24 single family homes, is partially completed. The first of two 45-unit condominium buildings is completed and
fully occupied. The second condominium building is approved and awaiting the start of construction. The sales office
for the second building recently opened and pre-sales of the units are underway. Build out of the single family home
portion of the development is progressing with five homes completed to date. The Amberley Woods development is
clustered around preserved wetlands and woodlands providing a sheltered residential neighborhood with easy access to
the Tollway. There is a 8.5 acre non-residential component of the Amberley Woods development. The property owner
is exploring various options for development of this parcel including some mix of office, retail, high end restaurants,
multi-family residential units, a boutique hotel or spa. This development will ultimately provide goods and services to
the residents living in the area and the larger region, while also supporting the large number of employees who work in
the Conway Park office park. On the north side of Route 60, another residential project is underway, Willow Lake, a
52 unit townhouse development. This development is partially occupied and construction on the remaining townhouses
is proceeding rapidly. The development, although close to Route 60, is hidden from views of traffic and is located on a
natural lake, in a secluded area, across from Lake Forest Academy, a private school. Almost every property in this
development has views of the natural pond or the new pond that was added to the site during construction. The
infrastructure throughout the development is complete and the remaining home sites are currently being actively
marketed.
Central Business District
The City’s Central Business District is focused around historic Market Square. Market Square was designed by
famed architect, and Lake Forest resident, Howard Van Doren Shaw and construction of the square began in 1915.
Market Square is still regarded today by planners and architects throughout the country as an extraordinary model of a
town center. Market Square and the surrounding blocks that make up the City’s core area are home to various unique
boutique retail stores, some national chains, restaurants (one located in the City’s former fire station), banks, real estate
offices, a commuter train station, City Hall and the post office. Market Square was acquired by new owners in 2013
and the new owners immediately embarked on a $5 million upgrade including: historic restoration of the buildings,
significant life safety improvements, upgrades of second floor areas to offer high quality office space and enhancements
to outdoor areas expanding the opportunities for dining and special events. The renovation is substantially complete
and the recent relocation of Starbucks into larger and upgraded space has drawn rave reviews. Although the City is
committed to preserving the historic character of the Central Business District, the City actively works with property
owners and developers to support adaptive reuse, restoration and redevelopment of properties in the Central Business
District. With careful planning and attention to preserving the character that makes Lake Forest special, projects like
the cleanup and redevelopment of a former gas station and car dealership site occurred in 2004. Today, the site is an
active part of the Central Business district with a two story bank building and a smaller building housing several retail
businesses that have become community favorites. At another location in the Central Business District, the site of a
former building materials yard was redeveloped with the City’s first residential rowhouse project providing high end
housing near the business district and within walking distance of the train.
In 2010, major infrastructure upgrades and streetscape improvements were completed along Western Avenue,
the main street through the Central Business District. A key intersection was re-aligned, the sewer system was
upgraded, parking spaces were reconfigured to better meet customer needs, pedestrian crossings were added, the street
was re-constructed, enhanced streetscape lighting was installed and the entire area was re-landscaped. In response,
some private property owners in the Central Business District re-invested in their properties with new signage and
awnings and overall maintenance work on the buildings.
47
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
6
The City received grants to support restoration of the historic train station which is located immediately across
from historic Market Square. The exterior restoration of the depot building is complete and nearby, a new bicycle
shelter and realigned bicycle path to support the City’s commuter hub were also completed and funded by grant dollars.
Interior upgrades to the train depot are set to begin in mid-2017. Upgrades to public restrooms and the commuter
waiting area will be completed along with upgrades to tenant spaces within the depot. Shortly after completion of the
exterior renovations, a local garden shop opened a satellite location at the train station filling the area with flowers and
seasonal color and attracting customers to this convenient new location, right in the center of the community. Other
potential tenants have expressed interest in locating in the train depot once the interior upgrade is complete.
The Deer Path Inn, listed on the National Register of Historic Places, has operated in Lake Forest’s Central
Business District since 1929. New owners purchased the property in late 2013. The hotel closed in January 2015 for
extensive renovation and restoration and reopened less than twelve months later. Today, the hotel and restaurants
within it are hugely popular with local residents, businesses and visitors. The Inn retains the original historic character
while offering up to date luxurious amenities. The dining areas within the hotel include a formal dining room, an
informal garden room, a seasonal internal garden terrace, a casual pub and an upscale bar. Generations of families
from Lake Forest and beyond have celebrated holidays and special events in these spaces as well as often visiting for a
casual lunch or dinner. With the upgraded facilities, these traditions will continue for the next 100 years in grand style.
The Inn offers guest rooms, meeting rooms, banquet spaces and dining experiences that are not available elsewhere on
the North Shore or in Lake County. The Deer Path Inn easily rivals upscale hotels and restaurants in downtown
Chicago.
Looking Forward – Upcoming Developments
In 2016, The City of Lake Forest sold a 10-acre, City owned parcel. The parcel is the site of the City’s former
Municipal Services Facility and is located at the north end of the Central Business District, within walking distance to
shops, restaurants, the train station, Market Square, the Library, parks and schools. This parcel presents a one of a
kind opportunity for redevelopment in the heart of Lake Forest. Construction at the site is underway. The approved
development, Kelmscott Park, includes 111 apartments configured in three buildings, 42 condominiums configured in
two buildings and twelve single family homes. Site preparations are completed and vertical construction is underway
on the first three buildings. Pre-sales of the condominium units to date include the sale of a million dollar unit. The
approved overall development plan assures that the end product will be of high quality and will support and enhance the
vitality of the City’s Central Business District and add to the community’s distinctive character. Focus Development,
Inc.is the developer of record. Underground parking is provided for all the condominium and apartment units, and on
site management and upscale amenities are planned for the apartment buildings. The apartments will include quality
units that will be available to moderate income households to provide housing opportunities for local employees of the
school districts, hospital and other local entities. In January 2015, the City Council approved Ordinances establishing
the site as a Tax Increment Financing (TIF) district to support land assembly, site remediation, demolition and public
improvements that are necessary to support development of the site.
In addition to Kelmscott Park, a second multi-building development was recently approved across from the train
depot in the Central Business District. This project, the McKinley Road Redevelopment project, involves the
demolition of three office buildings. The site, which is within walking distance of public transportation, stores, the
Library, parks and restaurants, is planned for redevelopment with three residential buildings. Various residential unit
types, at various price points, will be offered in well-designed buildings of masonry construction. Work is underway
on the first building.
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City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
7
Several other new residential developments are in various stages of the review and construction process.
Infrastructure improvements are complete for a 16-lot planned preservation subdivision on a 30-acre parcel, near
Conway Farms Golf Course. The Westleigh Farms Subdivision, a 32-lot single family home development, is approved
and awaiting recording of the plat of subdivision. Site work is scheduled to get underway in 2017. This development
offers lots of a half-acre and smaller clustered around a central open space along with larger lots for custom building
homes. Nearby, a nine lot subdivision is pending final approval, 770 E. Westleigh Road. Together, these two
subdivisions will offer preserved open space and linked trails for residents to enjoy the natural environment while living
within minutes of Lake Forest’s historic Central Business District, high quality schools and the Lakefront.
Construction was recently completed or is underway on approximately 20 new single family homes. Some are
on vacant lots, while others are replacing existing single family homes. Building permit activity for interior alterations,
additions, swimming pools and other property upgrades is high with considerable investment being made by property
owners throughout the community.
Municipal and Other Governmental Services
The City was granted incorporation by Special Charter (special act) of the General Assembly of the State of
Illinois in 1861. In 1869, the special act was repealed in its entirety by another special act. The 1869 Charter was a
more extensive grant than the 1861 act as indicated by the enumeration of the City Council's powers in 43 clauses.
One of the features of the Special Charter is that it was designed to provide needed municipal services while at the same
time centralizing the leadership and control over them. An example of this centralization is that while the
appropriations and tax levies of Elementary School District No. 67 are initiated by the School Board, they must be
incorporated in the tax levy ordinance adopted by the City Council. Another example is the Library Board, which
operates the City Library. The board is appointed by the City Council, rather than being a separately elected municipal
corporation. It is believed that the City is the only municipality in the State of Illinois that has maintained its original
Special Charter powers with all others having chosen instead, over the years, to be subject solely to the statutory
powers given to all Illinois municipalities.
The governing and legislative body of the City is the Council composed of a Mayor (elected bi-annually on an
at-large basis) and two aldermen from each of four wards (one alderman from each ward is elected annually). Pursuant
to an ordinance adopted in 1956, the City Manager is responsible for the day-to-day operations of the City and its 210
full-time employees (excluding Library employees). The employees in a collective bargaining unit include 30 police
officers, 55 public works/parks employees and 27 fire fighters/fire lieutenants. The City's Police and Fire departments
include 40 uniformed police and 33 uniformed fire personnel. The excellence of the Fire Department is highlighted by
the City's Class 4 fire insurance rating which exceeds that of over 95% of the fire departments/districts in the State of
Illinois. Some of the municipal services provided for and funded out of the tax rate include: the public library
(approximately 15,460 registered borrowers); twice weekly backdoor refuse pick-up; paramedic service (since 1974);
and the parks and recreation system including the 145 acre 18 hole golf course, 14 parks with a total acreage of 469
acres and 6 recreation facilities including a 1/4 mile public swimming beach and sailing center, Stirling Hall arts center,
Wildlife Discovery Center, Everett fieldhouse and the Community Recreation Center. The most recent addition to the
Community Recreation Center included the addition of 10,000 square feet to expand the City’s facilities for CROYA,
the City’s youth program. The expansion of the CROYA facilities was primarily funded through private donations. As
part of this project, the program area for the City’s preschool program was upgraded and parking and traffic circulation
were improved at the Recreation Center.
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City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
8
The City draws water for its plant from Lake Michigan. Proceeds of the Series 2001A Bonds were used to pay
the cost of engineering studies for improvements to the water system. The proceeds of the $26,000,000 Series 2002A
Bonds were used for water and sewer system improvements, including water treatment plant improvements, a 36-inch
transmission main and certain sanitary sewers. The Series 2003C Bonds were used for various water and sanitary
sewer system improvements. The Water Plant Improvement Project included the installation of a state of the art
membrane filtration system (the first water plant to have such technology in Illinois), the replacement of both high lift
and low lift pumps, the installation of electrical switch gear, and a new back-up power supply. Water began pumping
from the new plant at the end of April, 2004. The back-up power supply and HVAC improvements were completed by
October, 2004.
The City's Comprehensive Annual Financial Report has been awarded the Certificate of Achievement for
Excellence in Financial Reporting by the Governmental Finance Officers' Association (GFOA) of the United States and
Canada, for the City's 1979-2016 reports. The significance of the GFOA's award is emphasized by their statement:
"The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial
reporting and its attainment represents a significant accomplishment by a governmental unit and its management.” The
City annually prepares a "Comprehensive Fiscal Plan" which includes: Operating and Capital Budgets for the current
year; a Five Year Financial Analysis and Plan; and, a Five Year Projection for Personnel, Capital Investment and
Equipment costs. The City received the GFOA’s Distinguished Budget Presentation Award for its FY2017 Budget
document. The City has an independent Audit Committee consisting of Council members and residents having
expertise in the area of financial administration and auditing that serves as an oversight body on behalf of the City
Council. The City has been self-insured since 1981 through participation with the Intergovernmental Risk Management
Agency (IRMA), which is a proprietary venture established to manage and fund claims for its 70 member municipalities
and special districts.
The City's growth has been guided by far-sighted municipal planning. Formal zoning procedures were
implemented in 1923 when the City's first zoning ordinance was adopted. In 1926, an ordinance was adopted
establishing the Plan Commission. Comprehensive Plans to assist in long-range development were adopted in 1929,
1955 and 1978. The City’s Comprehensive Plan was completely updated in 1998 and officially adopted by the City
Council at that time. Demonstrating the City’s commitment to careful, long term planning, the Comprehensive Plan
was amended in 2001 and 2008 to respond to changing trends and needs in the community. Beginning in 2017, the
City will begin a public process to update the Comprehensive Plan to assure that the Plan continues to provide a strong
and up to date frame work for development related decisions. Diversity in housing, the vitality of the City’s business
districts, transportation, preservation of the community’s character and quality of life and sustainability will all be
topics of discussion.
In 1956, an ordinance was adopted regulating the architectural design of buildings within the City and
establishing the Building Review Board. In 1998, the City adopted an historic preservation ordinance and established
the Historic Preservation Commission. These ordinances set Lake Forest apart from other suburban communities by
providing the tools necessary to preserve the unique character of the City’s neighborhoods and ensure that changes
happen in a manner that protects the historic heritage of the community as well as the values of individual properties
while at the same time, embracing new ideas, methodologies, technology and opportunities. On a contractual basis, the
City provides building inspection and plan review services to the Villages of Lake Bluff and Bannockburn. The City
completed a Comprehensive Master Park Plan in October, 1995 which assessed existing park and recreational facilities,
determined current needs, projected future needs, suggested the most effective utilization of existing facilities, and
identified and prioritized needed improvements and enhancements to the parks. The Plan encompassed all City-owned
properties and included cost estimates and fiscally responsible phasing recommendations for accomplishing required
improvements. Specific Master Plans are currently being developed for each of the City-owned parks to guide specific
improvements in the future. The City is forward looking, as evidenced by the recent adoption of a Bicycle Master Plan
and the establishment of an Environmental Collaborative. The Collaborative brings together representatives of local
institutions to plan for a sustainable community and preservation of the quality of life that makes Lake Forest a special
and highly desirable place to live, work and play. The City Council recently adopted a Sustainability Plan that was put
forward by the Collaborative as a result of extensive public meetings and workshops.
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City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
9
Schools/Hospitals
Lake Forest School District No. 67, which serves nearly the City’s entire tax base, has a current enrollment of
1,725 students. The District operates three K-4 schools and one middle school for grades 5-8.
The Lake Forest Community High School District No. 115 serves Lake Forest, Lake Bluff, and surrounding
unincorporated areas including Knollwood. The Lake Forest High School District has an enrollment of approximately
1,700.
The City’s diverse and strong educational institutions continue to grow, upgrade and adapt in response to
education trends. Lake Forest College (enrollment 1,592), a private liberal arts college established even before the City
itself, completed a new residence hall which welcomed students for the first time in fall 2013. This residence hall
replaced one of the original residence halls providing the types of living spaces and amenities desired by today’s college
student. This new residence hall joins the recently completed student sports center on south campus demonstrating the
commitment of the college to remain current and actively competitive with similarly sized colleges throughout the
Country. Concurrent with this project upgrading of water mains occurred throughout the campus improving life safety
protections to the various buildings on campus. A $40 million upgrade to the science facilities on the campus is
underway. The new science building, and significant upgrades to the existing buildings, will provide state of the art
laboratories, research facilities and classrooms. Although a Liberal Arts College, today, science and technology is
integrated into many disciplines and the new facilities positions the College well to attract talented students as well as
faculty.
Two of the City’s private high schools recently upgraded their campuses. Lake Forest Academy recently
completed a new student sports center, girls’ dormitory, a new Science Center and a Student Union that rivals that of a
small college. The Student Union is a hub for dining and social activities for students and faculty. Woodlands
Academy, a Catholic girls’ school, recently received a gift of the adjacent 22 acre property, the former Barat Campus.
The two campuses are now fully integrated providing space for competition level athletic fields and expanded facilities
for faculty and students.
Construction of a new $180 million replacement hospital on the campus of the existing Northwestern Lake
Forest Hospital is nearing completion. Road improvements to support this new development are complete and the new
hospital, nearly 500,000 square feet, and will offer state of the art in-patient and out-patient care, diagnostics, cancer
and cardiac wings, and medical offices. The City and Hospital teams have worked closely together over the past five
years developing plans, studying traffic patterns, addressing stormwater runoff and gaining the necessary approvals
from local and State agencies in support of this project. The park-like health and wellness campus will be a regional
medical facility, while at the same time offering Lake Forest residents the unique benefit of a community hospital. The
new hospital is scheduled to be fully operational in the first quarter of 2018.
The hospital is part of the City of Lake Forest’s history and remains a cornerstone of the community. The
campus today includes the Hospital Health & Fitness Center, Dearhaven Child Care and Learning Center,
Westmoreland Nursing Center and the Women’s Auxiliary of Lake Forest Hospital. The Emergency department
provides adult and pediatric emergency care, urgent care and a 24-hour Level II trauma center. The hospital also
provides community education programs covering prevention and wellness, seminars related to specific diseases and
treatments, support groups and a comprehensive selection of perinatal and parenting classes. Upon completion of the
new hospital, the campus is expected to incorporate opportunities for research and education as the campus continues to
grow and change to respond to healthcare needs of the future.
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City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
10
SOCIOECONOMIC INFORMATION
The following statistics pertain principally to the City. Additional comparisons are made with Lake County (the
“County”) and the State of Illinois (the “State”).
Employment
Following are lists of large employers located in the City and in the surrounding area.
Major City Employers(1)
Approximate
Name Product/Service Employment
Northwestern Lake Forest Hospital ................... General Medical and Surgical Hospital .............................. 1,600
Hospira, Inc. ....................................... Corporate Headquarters and Surgical and Medical Instruments ......... 1,350
Trustmark Companies ................................. Health and Life Insurance Benefits and Administration ............... 800
Lake Forest College ................................. Higher Education ................................................... 500(2)
Lake Forest Community High School District No. 115 ... Secondary Education ................................................ 350(3)
Pactiv LLC .......................................... Corporate Headquarters and Specialty Packaging Products ............. 300
City of Lake Forest ................................. Municipal Government ............................................... 275
Brunswick Corp. ..................................... Corporate Headquarters and Sporting and Athletic Goods .............. 200
Packaging Corp. of America .......................... Corporate Headquarters and Containerboard and Corrugated Packaging .. 200
Notes: (1) Source: the City. Data for 2016.
(2) Excludes student employees.
(3) Excludes coaches, community education employees and student employees.
Major Area Employers(1)
Approximate
Location Name Description Employment
Deerfield ....... Walgreen Co. ......................... Company Headquarters; Pharmacy & Drugstore ........................ 9,600
Northbrook ...... The Allstate Corporation .............. Corporate Headquarters; Insurance ................................. 8,750
Deerfield ....... Baxter International, Inc. ............ Corporate Headquarters; Pharmaceutical Products ................... 4,000
Northfield ...... Kraft Heinz Foods Company ............. Company Headquarters; Food Products ............................... 3,300
Northbrook ...... Underwriters Laboratories ............. Corporate Headquarters; Product Testing and Certification .......... 2,000
Buffalo Grove ... Siemens Building Technologies ......... Building Control Systems .......................................... 1,800
Deerfield ....... Takeda Pharmaceuticals USA, Inc. ...... Corporate Headquarters; Pharmaceutical Products ................... 1,700
Wheeling ........ Durable Packaging International ....... Aluminum Foil and Packaging Products .............................. 1,500
Northbrook ...... CVS Caremark ......................... Drug Store Chain .................................................. 1,400
Glenview ........ Abt Electronics, Inc. ................. Consumer Electronics & Appliances ................................. 1,200
Highland Park ... Highland Park Hospital ................ Hospital .......................................................... 1,200
Buffalo Grove ... I.S.I. ............................... Management Consultants ............................................ 1,200
Deerfield ....... Mondelez International ................ Corporate Headquarters; Confectionery, Food and Beverage Company ... 1,200
Northbrook ...... Astellas Pharma US, Inc. .............. Corporate Headquarters; Pharmaceutical Research Laboratories ....... 1,150
Glenview ........ Anixter, Inc. ........................ Corporate Headquarters; Telecommunications Products ................ 1,000
Glenview ........ Glenbrook Hospital ................... General Hospital .................................................. 1,000
Northbrook ...... Northbrook Court ..................... Shopping Mall ..................................................... 1,000
Lincolnshire .... Zebra Technologies ................... Corporate Headquarters; Label Printing ............................ 900
Glenview ........ Glenbrook High School District 225 .... Secondary Education ............................................... 849
Wheeling ........ Handi-Foil Corp. ..................... Aluminum Foil and Packaging Products .............................. 800
Lincolnshire .... HydraForce, Inc. ..................... Hydraulic Cartridge Valves ........................................ 750
Wheeling ........ Segerdahl Corp. ...................... Corporate Headquarters; Digital Printing .......................... 725
Northfield ...... College of American Pathologists ...... Pathologists' Membership Association .............................. 600
Glenview ........ Midwest Industrial Packaging .......... Packaging Equipment ............................................... 600
Note: (1) Source: The County, the 2016 Illinois Services Directory, the 2016 Illinois Manufacturers Directory and a
selective telephone survey.
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City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
11
The following tables show employment by industry and by occupation for the City, Lake County (the
“County”) and the State of Illinois (the “State”) as reported by the U.S. Census Bureau 2011-2015 American
Community Survey 5-year estimated values.
Employment By Industry(1)
The City The County The State
Classification Number Percent Number Percent Number Percent
Agriculture, Forestry, Fishing and Hunting, and Mining ........ 40 0.5% 856 0.3% 64,380 1.1%
Construction ................................................. 209 2.7% 16,494 4.9% 313,232 5.1%
Manufacturing ................................................ 799 10.1% 54,669 16.1% 765,301 12.6%
Wholesale Trade .............................................. 417 5.3% 14,885 4.4% 184,522 3.0%
Retail Trade ................................................. 659 8.4% 39,821 11.7% 668,523 11.0%
Transportation and Warehousing, and Utilities ................. 88 1.1% 11,921 3.5% 358,122 5.9%
Information .................................................. 187 2.4% 6,492 1.9% 123,286 2.0%
Finance and Insurance, and Real Estate
and Rental and Leasing ...................................... 1,446 18.4% 26,916 7.9% 446,219 7.3%
Professional, Scientific, and Management, Administrative,
and Waste Management Services ............................... 1,587 20.1% 46,588 13.7% 695,791 11.4%
Educational Services and Health Care and Social Assistance .... 1,664 21.1% 65,163 19.2% 1,396,976 23.0%
Arts, Entertainment and Recreation and Accommodation
and Food Services ........................................... 420 5.3% 31,016 9.2% 551,219 9.1%
Other Services, Except Public Administration .................. 287 3.6% 14,326 4.2% 288,602 4.7%
Public Administration ........................................ 77 1.0% 9,812 2.9% 230,053 3.8%
Total ...................................................... 7,880 100.0% 338,959 100.0% 6,086,226 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2011 to 2015.
Employment By Occupation(1)
The City The County The State
Classification Number Percent Number Percent Number Percent
Management, Business, Science, and Art ....................... 5,145 65.3% 142,158 41.9% 2,241,849 36.8%
Service ...................................................... 472 6.0% 51,931 15.3% 1,057,682 17.4%
Sales and Office ............................................. 1,964 24.9% 86,415 25.5% 1,493,597 24.5%
Natural Resources, Construction, and Maintenance .............. 154 2.0% 20,244 6.0% 444,435 7.3%
Production, Transportation, and Material Moving .............. 145 1.8% 38,211 11.3% 848,663 13.9%
Total ...................................................... 7,880 100.0% 338,959 100.0% 6,086,226 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2011 to 2015.
Unemployment rates for the City are well below the County and the State levels, as shown below.
Annual Average Unemployment Rates(1)
Calendar The The The
Year City County State
2004 ................... 3.1% 5.5% 6.2%
2005 ................... 2.7% 4.7% 5.7%
2006 ................... 2.5% 4.2% 4.5%
2007 ................... 2.9% 5.0% 5.1%
2008 ................... 3.8% 6.7% 6.5%
2009 ................... 5.7% 9.8% 10.0%
2010 ................... 6.3% 10.5% 10.3%
2011 ................... 5.6% 9.4% 9.8%
2012 ................... 5.3% 8.7% 8.9%
2013 ................... 7.1% 8.7% 9.2%
2014 ................... 5.4% 6.5% 7.1%
2015 ................... 4.7% 5.5% 5.9%
2016 ................... N/A 5.2% 5.9%
Note: (1) Source: Illinois Department of Employment Security and the City.
53
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
12
Building Permits
City Building Permits(1)
Fiscal Building Permits Residential Commercial
Year Issued Construction Construction
2004 ................ 4,308 83 3
2005 ................ 4,740 128 5
2006 ................ 4,055 44 1
2007 ................ 3,501 22 3
2008 ................ 3,491 33 1
2009 ................ 3,142 23 3
2010 ................ 2,610 4 1
2011 ................ 3,072 8 2
2012 ................ 3,451 11 1
2013 ................ 3,197 7 2
2014 ................ 3,418 17 1
2015 ................ 3,668 15 1
2016 ................ 3,855 51 1
Note: (1) Source: the City.
Housing
The U.S. Census Bureau 5-year estimated values reported that the median value of the City’s owner-occupied
homes was $841,400. This compares to $245,300 for the County and $173,800 for the State. The following table
represents the five year average market value of specified owner-occupied units for the City, the County and the State
at the time of the 2011-2015 American Community Survey.
Home Values(1)
The City The County The State
Value Number Percent Number Percent Number Percent
Under $50,000 ..................... 55 1.0% 6,656 3.7% 240,110 7.6%
$50,000 to $99,999 ................ 63 1.1% 14,881 8.3% 518,898 16.3%
$100,000 to $149,999 .............. 79 1.4% 23,958 13.3% 533,593 16.8%
$150,000 to $199,999 .............. 24 0.4% 27,259 15.2% 527,923 16.6%
$200,000 to $299,999 .............. 218 3.8% 35,313 19.6% 648,006 20.4%
$300,000 to $499,999 .............. 576 10.0% 37,866 21.1% 473,931 14.9%
$500,000 to $999,999 .............. 2,499 43.2% 27,235 15.1% 188,536 5.9%
$1,000,000 or more ................ 2,269 39.2% 6,617 3.7% 46,708 1.5%
Total ........................... 5,783 100.0% 179,785 100.0% 3,177,705 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2011 to 2015.
Mortgage Status(1)
The City The County The State
Number Percent Number Percent Number Percent
Housing Units with a Mortgage ..... 3,731 64.5% 131,085 72.9% 2,104,166 66.2%
Housing Units Without a Mortgage .. 2,052 35.5% 48,700 27.1% 1,073,539 33.8%
Total ........................... 5,783 100.0% 179,785 100.0% 3,177,705 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2011 to 2015.
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City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
13
Income
Per Capita Personal Income
for the Highest Income Counties in the State(1)
Rank 2011-2015
1 ..................... DuPage County ............... $39,336
2 ..................... Lake County................. 39,299
3 ..................... McHenry County .............. 33,735
4 ..................... Monroe County ............... 32,889
5 ..................... Piatt County ................ 32,724
6 ..................... Will County ................. 31,310
7 ..................... McLean County ............... 31,305
8 ..................... Kane County ................. 31,056
9 ..................... Kendall County .............. 31,053
10 .................... Sangamon County ............. 31,024
11 .................... Cook County ................. 31,013
Note: (1) Source: U.S. Bureau of the Census. 2011-2015
American Community 5-Year Estimates.
The following shows the median family income for counties in the Chicago metropolitan area.
Ranking of Median Family Income(1)
Ill. Family Ill.
County Income Rank
DuPage County .............$96,751 1
Lake County .............. 93,668 2
Kendall County ............ 91,612 3
McHenry County ............ 89,768 4
Will County ............... 87,950 5
Kane County ............... 81,718 8
Cook County ............... 67,324 23
Note: (1) Source: U. S. Bureau of the Census,
American Community Survey, 2011-2015
estimates.
The U.S. Census Bureau 5-year estimated values reported that the City had a median family income of
$185,917. This compares to $93,668 for the County and $71,546 for the State. The following table represents the
distribution of family incomes for the City, the County and the State at the time of the 2011-2015 American Community
Survey.
Family Income(1)
The City The County The State
Value Number Percent Number Percent Number Percent
Under $10,000 ..................... 127 2.4% 5,202 2.9% 137,468 4.4%
$10,000 to $14,999 ................ 31 0.6% 3,425 1.9% 83,523 2.7%
$15,000 to $24,999 ................ 89 1.7% 8,496 4.7% 219,861 7.0%
$25,000 to $34,999 ................ 62 1.2% 9,595 5.4% 247,041 7.9%
$35,000 to $49,999 ................ 237 4.5% 16,988 9.5% 372,279 11.9%
$50,000 to $74,999 ................ 373 7.1% 28,020 15.6% 572,734 18.3%
$75,000 to $99,999 ................ 428 8.2% 23,386 13.0% 460,502 14.7%
$100,000 to $149,999 .............. 774 14.8% 35,259 19.7% 554,220 17.7%
$150,000 to $199,999 .............. 608 11.6% 20,797 11.6% 234,835 7.5%
$200,000 or more .................. 2,498 47.8% 28,153 15.7% 242,220 7.8%
Total ........................... 5,227 100.0% 179,321 100.0% 3,124,683 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2011 to 2015.
55
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
14
The U.S. Census Bureau 5-year estimated values reported that the City had a median household income of
$256,202. This compares to $78,026 for the County and $57,574 for the State. The following table represents the
distribution of household incomes for the City, the County and the State at the time of the 2011-2015 American
Community Survey.
Household Income(1)
The City The County The State
Value Number Percent Number Percent Number Percent
Under $10,000 ..................... 217 3.3% 10,067 4.2% 343,101 7.2%
$10,000 to $14,999 ................ 106 1.6% 6,987 2.9% 217,426 4.5%
$15,000 to $24,999 ................ 271 4.1% 16,736 6.9% 477,279 10.0%
$25,000 to $34,999 ................ 139 2.1% 17,446 7.2% 449,729 9.4%
$35,000 to $49,999 ................ 370 5.5% 25,939 10.7% 610,069 12.7%
$50,000 to $74,999 ................ 527 7.9% 39,891 16.5% 851,656 17.8%
$75,000 to $99,999 ................ 625 9.4% 30,291 12.5% 609,496 12.7%
$100,000 to $149,999 .............. 933 14.0% 41,436 17.1% 676,505 14.1%
$150,000 to $199,999 .............. 657 9.8% 23,040 9.5% 272,382 5.7%
$200,000 or more .................. 2,828 42.4% 30,593 12.6% 278,745 5.8%
Total ........................... 6,673 100.0% 242,426 100.0% 4,786,388 100.0%
Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2011 to 2015.
Retail Activity
The table below shows certain sales tax receipts collected by the City as an indicator of commercial activity.
Retailers’ Occupation, Service Occupation and Use Tax(1)
State Fiscal Year State Sales Tax Annual
Ending June 30 Distribution(2) Change + (-)
2007 ........................ $2,783,698 23.56%(3)
2008 ........................ 3,050,438 9.58%
2009 ........................ 2,971,996 (2.57%)
2010 ........................ 2,519,529 (15.22%)
2011 ........................ 2,414,327 (4.18%)
2012 ........................ 2,406,211 (0.34%)
2013 ........................ 2,596,446 7.91%
2014 ........................ 2,834,067 9.15%
2015 ........................ 2,756,064 (2.75%)
2016 ........................ 2,671,045 (3.08%)
Growth from 2007 to 2016 ..................................... (4.05%)
Notes: (1) Source: Illinois Department of Revenue.
(2) Tax distributions are based on records of the Illinois Department
of Revenue relating to the 1% municipal portion of the Retailers’
Occupation, Service Occupation and Use Tax, collected on behalf of
the City, less a State administration fee. The municipal 1%
includes tax receipts from the sale of food and drugs which are
not taxed by the State. Includes Home Rule Sales Taxes.
(3) The 2007 percentage is based on 2006 sales tax receipts of
$2,252,966.
THE PROJECT
The proceeds of the Bonds will be used: (i) to finance certain capital improvements to the City’s water
treatment plant (the “Project”), and (ii) to pay the costs of issuance of the Bonds. The Project includes the replacement
of membranes and improvements to increase capacity of the City’s water treatment plant.
56
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
15
RISK FACTORS
The purchase of the Bonds involves certain investment risks. Accordingly, each prospective purchaser of the
Bonds should make an independent evaluation of the entirety of the information presented in this Official Statement
and its appendices and exhibits in order to make an informed investment decision. Certain of the investment risks are
described below. The following statements, however, should not be considered a complete description of all risks to
be considered in the decision to purchase the Bonds, nor should the order of the presentation of such risks be
construed to reflect the relative importance of the various risks. There can be no assurance that other risk factors are
not material or will not become material in the future.
Construction Risks
There are potential risks that could affect the ability of the City to timely complete the Project. [While
preliminary costs have been projected by the City’s consulting architects, not all of the construction contracts have
been let by the City.] No assurance can be given that the cost of completing the Project will not exceed available
funds. Completion of the Project involves many risks common to large construction projects such as shortages or
delays in the availability of materials and labor, work stoppages, labor disputes, contractual disputes with contractors
or suppliers, weather interferences, construction accidents, delays in obtaining legal approvals, unforeseen
engineering, archeological or environmental problems and unanticipated cost increases, any of which could give rise to
significant delays or cost overruns.
Finances of the State of Illinois
The State of Illinois (the “State”) has experienced adverse fiscal conditions resulting in significant shortfalls
between the State’s general fund revenues and spending demands. In addition, the underfunding of the State’s pension
systems has contributed to the State’s poor financial health. The State has also been operating since July 1, 2015,
without a fully enacted budget for the fiscal year ending June 30, 2016 (“Fiscal Year 2016”), and has not enacted a
budget for the fiscal year ending June 30, 2017 (“Fiscal Year 2017”). Certain Fiscal Year 2016 appropriations,
however, were enacted, including the approval of spending for elementary and secondary education, and other certain
Fiscal Year 2016 spending occurred through statutory transfers, statutory continuing appropriations, court orders and
consent decrees.
As described below, Fiscal Year 2017 spending for elementary and secondary education has been approved for
the entire fiscal year and includes an increase of $361 million over Fiscal Year 2016 levels. As for Fiscal Year 2017
spending for all other purposes, the General Assembly approved a stopgap six-month budget, which authorized
spending through December 31, 2016. Nonetheless, even with this partial-year budget, there will continue to be
delays in payments of bills and the State’s backlog of unpaid bills will continue to grow.
The State’s general fiscal condition, the underfunding of the State’s pension systems and the State’s continuing
budget impasse have materially adversely affected the State’s financial condition and may result in decreased or
delayed State appropriations to the City.
The City cannot predict the effect the State’s ongoing financial problems may have on the City’s future
finances.
57
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
16
Local Economy
The financial health of the City is in part dependent on the strength of the local economy. Many factors affect
the local economy, including rates of employment and economic growth and the level of residential and commercial
development. It is not possible to predict to what extent any changes in economic conditions, demographic
characteristics, population or commercial and industrial activity will occur and what impact such changes would have
on the finances of the City.
Declining Equalized Assessed Valuations
The amount of property taxes extended for the City is determined by applying the various operating tax rates
and the bond and interest tax rate levied by the City to the City’s Equalized Assessed Valuation (“EAV”). The City’s
EAV could decrease for a number of reasons including, but not limited to, a decline in property values or large
taxpayers moving out of the City. As detailed below, the City’s EAV has declined in four of the most recent five
years. Declining EAVs and increasing tax rates (certain of which may reach their rate ceilings) could reduce the
amount of taxes the City is able to receive.
Loss or Change of Bond Rating
A credit rating for the Bonds has been requested from Moody’s Investors Service, New York, New York
(“Moody’s”). The rating can be changed or withdrawn at any time for reasons both under and outside the City’s
control. Any change, withdrawal or combination thereof could adversely affect the ability of investors to sell the
Bonds or may affect the price at which they can be sold.
Secondary Market for the Bonds
No assurance can be given that a secondary market will develop for the purchase and sale of the Bonds or, if a
secondary market exists, that such Bonds can be sold for any particular price. The Underwriter is not obligated to
engage in secondary market trading or to repurchase any of the Bonds at the request of the owners thereof.
Prices of the Bonds as traded in the secondary market are subject to adjustment upward and downward in
response to changes in the credit markets and other prevailing circumstances. No guarantee exists as to the future
market value of the Bonds. Such market value could be substantially different from the original purchase price.
Continuing Disclosure
A failure by the City to comply with the Undertaking for continuing disclosure (see “CONTINUING
DISCLOSURE” and “THE UNDERTAKING” herein) will not constitute an event of default on the Bonds. Any
such failure must be reported in accordance with Rule 15c2-12 (the “Rule”) adopted by the Securities and Exchange
Commission (the “Commission”) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and
may adversely affect the transferability and liquidity of the Bonds and their market price.
Suitability of Investment
The interest rate borne by the Bonds is intended to compensate the investor for assuming the risk of investing
in the Bonds. Each prospective investor should carefully examine this Official Statement and its own financial
condition to make a judgment as to its ability to bear the economic risk of such an investment, and whether or not the
Bonds are an appropriate investment for such investor.
58
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
17
Future Changes in Laws
Various state and federal laws, regulations and constitutional provisions apply to the City and to the Bonds.
The City can give no assurance that there will not be a change in, interpretation of, or addition to such applicable
laws, provisions and regulations which would have a material effect, either directly or indirectly, on the City, or the
taxing authority of the City. For example, many elements of local government finance, including the issuance of debt
and the levy of property taxes, are controlled by state government. Future actions of the State may affect the overall
financial conditions of the City, the taxable value of property within the City, and the ability of the City to levy
property taxes or collect revenues for its ongoing operations.
Bankruptcy
The rights and remedies of the Bondholders may be limited by and are subject to the provisions of federal
bankruptcy laws, to other laws or equitable principles that may affect the enforcement of creditors’ rights, to the
exercise of judicial discretion in appropriate cases and to limitations on legal remedies against local governments. The
various opinions of counsel to be delivered with respect to the Bonds will be similarly qualified.
DEBT INFORMATION
After issuance of the Bonds, the City will have outstanding $56,285,000* principal amount of general
obligation bonded debt. Approximately 56% of this indebtedness, $31,510,000*, is expected to be repaid from sources
other than City-wide property taxes, principally water system revenues and tax increment finance revenues. In
addition, the City has $1,441,205 aggregate principal amount of special service area bonds. The City does not intend
to issue additional debt in 2017.
The City voted to become a home rule unit under the 1970 Illinois Constitution in 2004 and, as such, has no
statutory general obligation debt limit, is not required to seek referendum approval for the issuance of the Bonds, and
has no statutory tax rate limitations for any purpose. The City Council, however, has pledged to abide by the
“property tax cap” limitations of the Property Tax Extension Limitation Law (“PTELL”), unless: (i) the City Council
has determined that a bona fide emergency or legal requirement dictates said increase, or (ii) that an advisory
referendum has determined support with the City for said increase.
Pursuant to Ordinance Number 2013-070, the City is prohibited from levying property taxes to pay debt service
on its general obligation bonds in an amount in excess of its 2004 debt service levy (as adjusted for Consumer Price
Index increases) plus levies for capital improvements. Bonds expected to be repaid from sources other than general
property taxes (such as the Bonds, which are expected to be paid from net revenues of the City waterworks system) are
not included in such prohibition. The City also agreed to abide by the “property tax cap” for the City’s aggregate levy
in accordance with PTELL. The City may, however, increase its aggregate levy by more than the “property tax cap”
(but not more than 5%) by a three-fourths vote of the City Council, but only if the moneys raised by such increase in
property taxes in excess of the aggregate levy otherwise authorized under PTELL are used either: (a) for
supplementing the City’s Capital Improvement Fund; or (b) to replace revenues lost because of changes in the amount
of the State Revenue Sharing Moneys paid to the City.
When issued, the Bonds will meet the restrictions of the City self-imposed tax cap described above and
consequently are full faith and credit general obligation bonds and all taxable property in the City is subject to the levy
of taxes to pay the same without limitation as to rate or amount.
*Subject to change.
59
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
18
Outstanding Bonded Debt(1)
(Principal Only)
Fiscal Total
Year Ending Series Series Series Series Series Series Series The Bonded Cumulative Retirement(2)
April 30 2009 2010B 2010C 2011A 2011B 2013 2015 Bonds(2) Debt(2) Amount Percent
2018 ....... $ 180,000 $ 0 $ 210,000 $125,000 $ 2,270,000 $ 100,000 $ 175,000 $ 0 $ 3,060,000 $ 3,060,000 5.44%
2019 ....... 185,000 0 225,000 130,000 2,300,000 200,000 175,000 0 3,215,000 6,275,000 11.15%
2020 ....... 190,000 0 215,000 130,000 2,400,000 350,000 305,000 0 3,590,000 9,865,000 17.53%
2021 ....... 200,000 0 405,000 140,000 2,470,000 430,000 305,000 0 3,950,000 13,815,000 24.54%
2022 ....... 205,000 0 415,000 0 2,530,000 435,000 340,000 0 3,925,000 17,740,000 31.52%
2023 ....... 215,000 0 425,000 0 2,605,000 440,000 355,000 0 4,040,000 21,780,000 38.70%
2024 ....... 225,000 0 435,000 0 1,870,000 450,000 370,000 505,000 3,855,000 25,635,000 45.54%
2025 ....... 235,000 0 445,000 0 0 460,000 385,000 515,000 2,040,000 27,675,000 49.17%
2026 ....... 245,000 0 460,000 0 0 475,000 405,000 530,000 2,115,000 29,790,000 52.93%
2027 ....... 255,000 0 475,000 0 0 480,000 410,000 545,000 2,165,000 31,955,000 56.77%
2028 ....... 265,000 0 490,000 0 0 495,000 435,000 560,000 2,245,000 34,200,000 60.76%
2029 ....... 280,000 0 490,000 0 0 930,000 650,000 575,000 2,925,000 37,125,000 65.96%
2030 ....... 0 540,000 240,000 0 0 960,000 695,000 595,000 3,030,000 40,155,000 71.34%
2031 ....... 0 780,000 0 0 0 1,085,000 740,000 615,000 3,220,000 43,375,000 77.06%
2032 ....... 0 820,000 0 0 0 1,120,000 705,000 640,000 3,285,000 46,660,000 82.90%
2033 ....... 0 860,000 0 0 0 1,125,000 720,000 660,000 3,365,000 50,025,000 88.88%
2034 ....... 0 0 0 0 0 0 1,530,000 685,000 2,215,000 52,240,000 92.81%
2035 ....... 0 0 0 0 0 0 330,000 715,000 1,045,000 53,285,000 94.67%
2036 ....... 0 0 0 0 0 0 340,000 740,000 1,080,000 54,365,000 96.59%
2037 ....... 0 0 0 0 0 0 350,000 770,000 1,120,000 55,485,000 98.58%
2038 ....... 0 0 0 0 0 0 0 800,000 800,000 56,285,000 100.00%
Total .... $2,680,000 $3,000,000 $4,930,000 $525,000 $16,445,000 $9,535,000 $9,720,000 $9,450,000 $56,285,000
Notes: (1) Source: the City.
(2) Subject to change.
General Obligation Debt Outstanding - By Issue(1)
(Principal Only)
Property Tax Supported Amount
General Obligation Bonds, Series 2009 ........................................................................................... $ 2,680,000
Taxable General Obligation Bonds, Series 2010B (Recovery Zone Economic Development Bonds - Direct Payment) ....................... 3,000,000
Taxable General Obligation Bonds, Series 2010B (Build America Bonds - Direct Payment) ............................................ 4,930,000
General Obligation Refunding Bonds, Series 2013 ................................................................................. 9,535,000
General Obligation Bonds, Series 2015 - (Laural Avenue Portion) ................................................................. 4,630,000
Total Property Tax Supported .................................................................................................. $24,775,000
Self-Supporting
General Obligation Refunding Bonds, Series 2011A ................................................................................ $ 525,000
General Obligation Refunding Bonds, Series 2011B ................................................................................ 16,445,000
General Obligation Bonds, Series 2015 - (TIF Portion) ........................................................................... 5,090,000
The Bonds(2) ................................................................................................................... 9,450,000
Total Self Supporting(2) ...................................................................................................... $31,510,000
Total Outstanding General Obligation Debt(2) .................................................................................. $56,285,000
Notes: (1) Source: the City.
(2) Subject to change.
60
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
19
Detailed Overlapping Bonded Debt(1)
(As of March 1, 2017)
Outstanding Applicable to City
Debt Percent(2) Amount
Schools:
School District No. 67 ................................................ $ 5,601,829 100.00% $ 5,601,829
School District No. 103 ............................................... 8,165,000 0.01% 817
High School District No. 115 .......................................... 38,940,000 78.59% 30,602,946
Community College District No. 532 .................................... 67,415,000 10.37% 6,990,936
Total Schools ................................................................................................... $43,196,527
Others:
Lake County ........................................................... $188,095,000 9.84% $18,508,548
Lake County Forest Preserve District .................................. 270,445,000 9.84% 26,611,788
Total Others .................................................................................................... $45,120,336
Total Overlapping Debt .......................................................................................... $88,316,863
Notes: (1) Source: Lake County Clerk.
(2) Overlapping percentages are based on 2015 EAVs, the most current available.
Statement of Bonded Indebtedness(1)(2)
Ratio To Per Capita
Amount Equalized Estimated (2010 Census
Applicable Assessed Actual 19,375)
City EAV of Taxable Property, 2015 ........................... $2,307,936,059 100.00% 33.33% $119,119.28
Estimated Actual Value, 2015 ................................. $6,923,808,177 300.00% 100.00% $357,357.84
Total Direct Bonded Debt(3) .................................. $ 56,285,000 2.44% 0.81% $ 2,905.03
Less: Self-supporting Debt(3) ............................... (31,510,000) (1.37%) (0.46%) (1,626.32)
Total Net Direct Bonded Debt(3) ............................ $ 24,775,000 1.07% 0.36% $ 1,278.71
Overlapping Bonded Debt:
Schools ...................................................... $ 43,196,527 1.87% 0.62% $ 2,229.50
Others ....................................................... 45,120,336 1.96% 0.65% 2,328.79
Total Overlapping Bonded Debt .............................. $ 88,316,863 3.83% 1.28% $ 4,558.29
Total Direct and Overlapping Bonded Debt(3) ................. $ 144,601,863 6.27% 2.09% $ 7,463.32
Notes: (1) Source: Lake County Clerk.
(2) As of March 1, 2017 for Overlapping Bonded Debt and the date of issuance of the Bonds for Direct Bonded Debt.
(3) Subject to change.
DEFAULT RECORD
The City has no record of default and has met its debt repayment obligations promptly.
SHORT-TERM BORROWING
The City has not issued tax anticipation warrants or revenue anticipation notes during the last five years to
meet its short-term current year cash flow requirements.
61
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
20
PROPERTY ASSESSMENT AND TAX INFORMATION
For the 2015 levy year, the City’s EAV was comprised of approximately 91% residential, 9% commercial, and
less than 1% industrial, farm and railroad property valuations.
City Equalized Assessed Valuation(1)(2)
Levy Years
Property Class 2011 2012 2013 2014 2015
Residential ............... $2,302,061,004 $2,166,702,992 $2,047,760,158 $2,047,958,906 $2,105,361,682
Farm ...................... 4,142,688 2,485,744 3,330,967 4,001,932 4,080,940
Commercial ................ 203,074,638 207,360,589 200,625,492 196,562,054 196,233,065
Industrial ................ 70,382 65,556 62,064 61,541 46,548
Railroad .................. 1,266,392 1,432,258 1,768,723 1,844,203 2,213,824
Total ................... $2,510,615,104 $2,378,047,139 $2,253,547,404 $2,250,468,636 $2,307,936,059
Percent change +(-) ....... (5.67%)(3) (5.28%) (5.24%) (0.14%) 2.55%
Notes: (1) Source: Lake County Clerk.
(2) Excludes the incremental valuation in the City's tax increment financing districts.
(3) Percentage based on 2010 Equalized Assessed Valuation of $2,661,423,512.
Representative Tax Rates
Per $100 of Equalized Assessed Valuation(1)
Levy Years
2011 2012 2013 2014 2015
Bonds and Interest .................................. $0.068 $0.071 $0.088 $0.090 $0.067
Pensions (Police, Fire, IMRF) ....................... 0.165 0.182 0.202 0.210 0.209
Library ............................................. 0.141 0.157 0.169 0.172 0.170
Playgrounds and Recreation .......................... 0.178 0.194 0.209 0.212 0.214
Corporate Fund ...................................... 0.483 0.544 0.580 0.590 0.619
Total Tax Rate .................................... $1.035 $1.148 $1.248 $1.274 $1.279
Lake County and Forest Preserve Dist. ............... 0.755 0.820 0.881 0.893 0.871
North Shore Sanitary Dist. .......................... 0.150 0.150 0.164 0.169 0.166
Lake Forest Elementary School District No. 67 ........ 1.186 1.322 1.424 1.453 1.429
Lake Forest High School No. 115 ..................... 1.191 1.322 1.420 1.448 1.409
Community College Dist. No. 532 ..................... 0.240 0.272 0.296 0.306 0.299
All Other ........................................... 0.069 0.065 0.069 0.072 0.070
Total(2) .......................................... $4.626 $5.099 $5.502 $5.615 $5.523
City as a Percent of Total ......................... 22.37% 22.51% 22.68% 22.69% 23.17%
Notes: (1) Source: Lake County Clerk.
(2) Representative tax rate is for Shields Township Tax Code 14, which represents 44% of the City's 2015 Equalized
Assessed Valuation.
City Tax Extensions and Collections(1)
Levy Coll. Taxes Total Collections
Year Year Extensions Amount Percent
2006 ............ 007 .............. $22,999,873 $22,979,703 99.91%
2007 ............ 2008 ............. 23,895,634 23,863,170 99.86%
2008 ............ 2009 ............. 25,213,226 25,174,923 99.85%
2009 ............ 2010 ............. 25,526,887 25,486,745 99.84%
2010 ............ 2011 ............. 26,348,093 26,312,509 99.86%
2011 ............ 2012 ............. 25,984,866 25,911,250 99.72%
2012 ............ 2013 ............. 27,299,981 27,199,369 99.63%
2013 ............ 2014 ............. 28,124,272 28,016,472 99.62%
2014 ............ 2015 ............. 28,673,693 28,622,736 99.82%
2015 ............ 2016(2) .......... 29,528,749 29,479,003 99.83%
Notes: (1) Source: the City and the Lake County Treasurer.
(2) Collections as of January 19, 2017.
62
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
21
Major City Taxpayers(1)
Major Taxpayers Business/Service 2015 EAV(2)
Hospira Inc., a Pfizer Company ............................. Corporate HQ and Surgical and Medical Instruments .......... $18,519,759
Abbott Laboratories ........................................ Real Property ............................................. 14,112,229
The Presbyterian Home ...................................... Retirement Facility........................................ 12,567,495
Chicago Title Land and Trust ............................... Real Property ............................................. 9,328,491
Pactiv Corporation ......................................... Real Property ............................................. 8,645,053
Northwestern Lake Forest Hospital .......................... General Medical and Surgical Hospital ...................... 8,561,969
ATG Trust Co. .............................................. Real Property ............................................. 7,848,904
Trustmark Insurance Co. .................................... Health and Life Insurance and Benefits Administration ...... 7,646,395
Lake Forest Landmark Company, LLC .......................... Office Building ........................................... 6,619,908
Lake Forest Bank and Trust ................................. Banking ................................................... 5,918,683
Total ............................................................................................................... $99,768,886
Ten Largest as a percent of 2015 EAV ($2,307,936,059) ................................................................ 4.32%
Notes: (1) Source: Lake County Clerk.
(2) Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers listed
contain multiple parcels and it is possible that some parcels and their valuations have been overlooked. The 2015
EAV is the most current available.
REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES
Tax Levy and Collection Procedures
Local assessment officers determine the assessed valuation of taxable real property and railroad property not
held or used for railroad operations. The Illinois Department of Revenue (the “Department”) assesses certain other
types of taxable property, including railroad property held or used for railroad operations. Local assessment officers’
valuation determinations are subject to review at the county level and then, in general, to equalization by the
Department. Such equalization is achieved by applying to each county’s assessments a multiplier determined by the
Department. The purpose of equalization is to provide a common basis of assessments among counties by adjusting
assessments toward the statutory standard of 33-1/3% of fair cash value. Farmland is assessed according to a statutory
formula which takes into account factors such as productivity and crop mix. Taxes are extended against the assessed
values after equalization.
Property tax levies of each taxing body are filed in the office of the county clerk of each county in which
territory of that taxing body is located. The county clerk computes the rates and amount of taxes applicable to taxable
property subject to the tax levies of each taxing body and determines the dollar amount of taxes attributable to each
respective parcel of taxable property. The county clerk then supplies to the appropriate collecting officials within the
county the information needed to bill the taxes attributable to the various parcels therein. After the taxes have been
collected, the collecting officials distribute to the various taxing bodies their respective shares of the taxes collected.
Taxes levied in one calendar year are due and payable in two installments during the next calendar year. Taxes that are
not paid when due, or that are not paid by mail and postmarked on or before the due date, are subject to a penalty of
1-1/2% per month until paid. Unpaid property taxes, together with penalties, interest and costs, constitute a lien
against the property subject to the tax.
Exemptions
The Illinois Property Tax Code, as amended (the “Property Tax Code”), exempts certain property from
taxation. Certain property is exempt from taxation on the basis of ownership and/or use, including, but not limited to,
public parks, not-for-profit schools, public schools, churches, not-for-profit hospitals and public hospitals. In addition,
the Property Tax Code provides a variety of homestead exemptions, which are discussed below.
An annual General Homestead Exemption provides that the EAV of certain property owned and used for
residential purposes (“Residential Property”) may be reduced by the amount of any increase over the 1977 EAV, up to
a maximum reduction of $6,000 for tax year 2012 and thereafter.
63
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
22
The Homestead Improvement Exemption applies to Residential Property that has been improved and to
properties that have been rebuilt in the two years following a catastrophic event, as defined in the Property Tax Code.
The exemption is limited to $75,000 per year, to the extent the Assessed Valuation is attributable solely to such
improvements or rebuilding.
The Senior Citizens Homestead Exemption annually reduces the EAV on residences owned and occupied by
senior citizens. Beginning with tax year 2013, the maximum exemption is $5,000.
The Senior Citizens Assessment Freeze Homestead Exemption freezes property tax assessments for
homeowners who are 65 and older, reside in their property as their principal place of residence and receive a household
income not in excess of $55,000. This exemption grants to qualifying senior citizens an exemption equal to the
difference between (a) the current EAV of the residence and (b) the EAV of a senior citizen’s residence for the year
prior to the year in which he or she first qualifies and applies for the exemption, plus the EAV of improvements since
such year.
Beginning January 1, 2015 purchasers of certain single family homes and residences of one to six units located
in certain distressed communities can apply for the Community Stabilization Assessment Freeze Pilot Program. To be
eligible the purchaser must meet certain requirements for rehabilitating the property, including expenditures of at least
$5 per square foot, adjusted by CPI. Upon meeting the requirements, the assessed value of the improvements is
reduced by (a) 90% in the first seven years, (b) 65% in the eighth year and (c) 35% in the ninth year. The program
will be phased out by June 30, 2029.
The Natural Disaster Homestead Exemption (the “Natural Disaster Exemption”) applies to homestead
properties containing a residential structure that has been rebuilt following a natural disaster occurring in taxable year
2012 or any taxable year thereafter. A natural disaster is an occurrence of widespread or severe damage or loss of
property resulting from any catastrophic cause including but not limited to fire, flood, earthquake, wind, or storm. The
Natural Disaster Exemption is equal to the equalized assessed value of the residence in the first taxable year for which
the taxpayer applies for the exemption minus the base amount. To be eligible for the Natural Disaster Exemption, the
residential structure must be rebuilt within two years after the date of the natural disaster, and the square footage of the
rebuilt residential structure may not be more than 110% of the square footage of the original residential structure as it
existed immediately prior to the natural disaster. The Natural Disaster Exemption remains at a constant amount until
the taxable year in which the property is sold or transferred.
Three exemptions are available to veterans of the United States armed forces. The Disabled Veterans’
Exemption exempts up to $100,000 of the Assessed Valuation of property owned and used exclusively by veterans,
their spouses or unmarried surviving spouses. Qualification for this exemption requires the veteran’s disability to be of
such a nature that the federal government has authorized payment for purchase of specially adapted housing under the
U.S. Code as certified to annually by the Illinois Department of Veterans Affairs.
The Disabled Veterans’ Standard Homestead Exemption provides an annual homestead exemption to veterans
with a service-connected disability based on the percentage of such disability. If the veteran has a (a) service-connected
disability of 30% or more but less than 50%, the annual exemption is $2,500, (b) service-connected disability of 50%
or more but less than 70%, the annual exemption is $5,000, and (c) service-connected disability of 70% or more, the
property is exempt from taxation.
The Returning Veterans’ Homestead Exemption is available for property owned and occupied as the principal
residence of a veteran in the assessment year, or the year following the assessment year, in which the veteran returns
from an armed conflict while on active duty in the United States armed forces. This provision grants a one-time
homestead exemption of $5,000.
Finally, the Disabled Persons’ Homestead Exemption provides an annual homestead exemption in the amount of
$2,000 for property that is owned and occupied by certain disabled persons who meet State-mandated guidelines.
64
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
23
Property Tax Extension Limitation Law
PTELL limits the amount of the annual increase in property taxes to be extended for certain Illinois non-home
rule units of government. In general, PTELL restricts the amount of such increases to the lesser of 5% or the
percentage increase in the Consumer Price Index during the calendar year preceding the levy year. Currently, PTELL
applies only to and is a limitation upon all non-home rule taxing bodies in Cook County, the five collar counties
(DuPage, Kane, Lake, McHenry and Will) and several downstate counties.
As a home rule unit, the City is exempt under State law from the limitations contained in PTELL. However,
the City has agreed by ordinance to abide by certain provisions of PTELL, with certain exceptions. See ”DEBT
INFORMATION” herein.
Truth in Taxation Law
Legislation known as the Truth in Taxation Law (the “Law”) limits the aggregate amount of certain taxes which
can be levied by, and extended for, a taxing district to 105% of the amount of taxes extended in the preceding year
unless specified notice, hearing and certification requirements are met by the taxing body. The express purpose of the
Law is to require published disclosure of, and hearing upon, an intention to adopt a levy in excess of the specified
levels. The provisions of the Law do not apply to levies made to pay principal of and interest on the Bonds. The City
covenanted in the Bond Ordinance that it will not take any action which would adversely affect the levy, extension,
collection and application of the taxes levied by the City for payment of principal of and interest on the Bonds. The
City also covenanted that it will comply with all present and future laws concerning the levy, extension and collection
of such taxes levied by the City.
FINANCIAL INFORMATION
Budgetary Information
The City Council follows these procedures in establishing the budgetary and appropriations data reflected in its
financial statements:
1. The City Manager submits to the City Council a proposed operating budget for the fiscal year. The
operating budget includes proposed expenditures and estimated revenues.
2. Public budget and appropriations meetings are conducted by the City to obtain taxpayer comments.
3. The budget and the appropriation ordinance, which is 10% higher than the budget, are both legally
enacted through action of the City Council. Once enacted, the budget cannot be amended without
approval from the City Council. Funds may have expenditures in excess of budgeted amounts, but
legally may not have expenditures in excess of appropriations.
4. The legal level of budgetary control is the fund level. Management may make transfers of
appropriations within a fund. Any expenditures that exceed the total appropriations at the fund level
must be approved by the City Council.
5. Formal budgetary integration and legally adopted budgets are employed as a management control
device during the year for all Funds, through an internal reporting system. Such budgetary integration
permits the City's department managers to monitor actual revenues and expenditures relative to budgets
on an ongoing basis throughout the year. Formal encumbrance accounting is not used, and
appropriations not used by the end of the fiscal year lapse.
6. Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP).
65
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
24
Investment Policy
The City is authorized to invest in the following types of securities under Illinois law and the City's investment
policy:
• Bonds, notes, certificates of indebtedness, treasury bills, or other securities which are guaranteed by the
full faith and credit of the United States of America;
• Bonds, notes, debentures, or other similar obligations of U.S. Government or its agencies, or
government sponsored enterprises (GSEs);
• 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 nationally recognized statistical rating organization
(NRSRO);
• 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;
• Certificate of Deposit Account Registry Service (CDARS) certificates of deposit or Insured Cash Sweep
(ICS) service;
• 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 NRSROs, and 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
security which are guaranteed by the full faith and credit of the federal government as to principal and
interest;
• Short term discount obligations of the Federal National Mortgage Association (established by or under
the National Housing Act (1201 U.S.C. 1701 et seq.)), or in shares or other forms of securities legally
issuable by savings banks or savings and loan associations incorporated under the laws of Illinois or any
other state or under the laws of the United States, provided, however, that the shares or investment
certificates of such savings banks or savings and loan associations are insured by the Federal Deposit
Insurance Corporation;
• Dividend-bearing share accounts, share certificates accounts, or class of share accounts of a credit
union chartered under the laws of the State of Illinois or the laws of the United States; provided,
however, the principal office of the credit unions must be located within the State of Illinois; and,
provided further, that such investments may be made only in those credit unions the accounts of which
are insured by applicable law;
• Illinois Funds;
• Illinois Metropolitan Investment Fund (IMET) – (1) 1-3 year Fund and (2) Convenience Fund; and
66
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
25
• Repurchase agreements of government securities having the meaning set out in the Government
Securities Act of 1986 (15 U.S.C.A. § 780-5) subject to the provisions of that Act and the regulations
issued thereunder, provided, however, that such government securities, unless registered or inscribed in
the name of the City, shall be purchased through banks or trust companies authorized to do business in
the State of Illinois; and such other repurchase agreements as are authorized in subsection (h) of Section
2 of the Public Funds Investment Act (30 ILCS 235/2). Repurchase agreements may be executed only
with approved financial institutions or broker/dealers meeting the City's established standards, which
shall include mutual execution of a Master Repurchase Agreement adopted by the City.
Financial Reports
The City’s financial statements are audited annually by certified public accountants. The City’s financial
statements are completed on a modified accrual basis of accounting consistent with generally accepted accounting
principles applicable to governmental entities. See APPENDIX A for more detail.
No Consent or Updated Information Requested of the Auditor
The tables and excerpts (collectively, the “Excerpted Financial Information”) contained in this “FINANCIAL
INFORMATION” section and in APPENDIX A are from the audited financial statements of the City, including the
audited financial statements for the fiscal year ended April 30, 2016 (the “2016 Audit”) which was approved by formal
action of the City Council. The 2016 Audit was prepared by Baker Tilly Virchow Krause, LLP, the City’s independent
auditor (the “Auditor”). The Auditor has not been engaged to perform, and has not performed since the date of its
2016 Audit report, any procedures on the financial statements addressed in the 2016 Audit report. The Auditor also has
not performed any procedures relating to this Official Statement.
The City has not requested the Auditor to update information contained in the Excerpted Financial Information;
nor has the City requested that the Auditor consent to the use of the Excerpted Financial Information in this Official
Statement. Other than as expressly set forth in this Official Statement, the financial information contained in the
Excerpted Financial Information has not been updated since the date of the 2016 Audit. The inclusion of the Excerpted
Financial Information in this Official Statement in and of itself is not intended to demonstrate the fiscal condition of the
City since the date of the 2016 Audit. Questions or inquiries relating to financial information of the City since the date
of the 2016 Audit should be directed to the City.
Summary Financial Information
The following tables are summaries and do not purport to be the complete audits, copies of which are available
upon request. For its fiscal year ended April 30, 2017, the City expects an increase of approximately $1,800,000 in its
General Fund fund balance. The City has passed a balanced budget for its fiscal year ending April 30, 2018. See
APPENDIX A for the City’s 2016 fiscal year audit.
67
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
26
Statement of Net Position
Audited as of April 30
2012 2013 2014 2015 2016
ASSETS:
Cash and Cash Equivalents ....................... $ 33,692,501 $ 33,654,290 $ 36,993,159 $ 37,671,531 $ 48,493,885
Investments ..................................... 3,235,374 3,549,244 4,074,228 4,359,036 4,487,724
Property Held of Resale ......................... 0 0 0 380,000 380,000
Receivables (net):
Property Taxes ................................. 24,736,822 23,473,050 24,193,594 24,670,331 25,526,738
Other Taxes .................................... 208,533 354,314 488,656 406,832 343,289
Accounts ....................................... 1,226,319 895,021 778,016 1,015,835 1,375,185
Loans .......................................... 2,029,272 2,020,763 1,504,421 1,208,044 905,054
Other .......................................... 233,435 468,726 763,686 1,404,950 1,370,947
Due from Other Governments ...................... 2,239,891 1,869,073 1,861,326 1,933,837 1,662,440
Internal Balances ............................... (688,361) (61,448) (189,922) (369,946) (545,075)
Inventories ..................................... 351,225 341,765 413,082 397,273 429,436
Prepaids ........................................ 640,619 616,665 585,715 643,472 698,889
Due from Fiduciary Funds ........................ 0 0 0 0 18,382
Deferred Charges - Bond Issuance Costs .......... 193,426 180,420 0 0 0
Net Pension Asset ............................... 1,318,752 1,598,911 1,997,994 2,432,828 0
Capital Assets:
Not Being Depreciated .......................... 112,447,582 112,238,404 112,097,527 112,681,944 113,144,182
Being Depreciated, Net ......................... 116,872,079 112,390,263 107,933,860 102,535,256 101,614,443
Total Assets .................................. $298,737,469 $293,589,461 $293,495,342 $291,371,223 $299,905,519
DEFERRED OUTFLOWS OF RESOURCES:
Deferred Loss on Refunding ...................... $ 0 $ 0 $ 131,510 $ 98,303 $ 68,701
Resources Related to Pensions ................... 0 0 0 0 10,576,993
Total Deferred Outflows of Resources .......... $ 0 $ 0 $ 0 $ 0 $ 10,645,694
LIABILITIES:
Accounts Payable ................................ $ 1,147,747 $ 1,207,340 $ 1,370,610 $ 1,866,976 $ 2,272,967
Accrued Liabilities ............................. 1,212,431 1,283,589 1,462,603 1,803,648 1,697,242
Accrued Interest Payable ........................ 529,727 498,524 554,756 488,702 475,710
Retainage Payable ............................... 75,544 0 0 25,838 0
Deposits ........................................ 843,290 819,155 1,000,237 770,528 953,263
Unearned Revenue - Property Taxes(1) ............ 24,736,822 23,473,050 0 0 0
Unearned Revenue - Other ........................ 2,826,200 2,508,608 2,226,151 2,009,528 1,839,321
Long Term Obligations:
Due within One Year ............................ 1,477,734 1,500,949 1,723,436 1,718,218 1,911,696
Due in More than One Year ...................... 38,958,362 37,606,798 36,275,624 34,574,042 92,345,953
Total Liabilities ............................. $ 71,807,857 $ 68,898,013 $ 44,613,417 $ 43,257,480 $101,496,152
DEFERRED INFLOWS OF RESOURCES:
Property Tax Levies for Future Periods .......... $ 0 $ 0 $ 24,193,594 $ 24,670,331 $ 25,526,738
Resources Related to Pensions ................... 0 0 0 0 2,020,708
Total Deferred Inflows of Resources ........... $ 0 $ 0 $ 0 $ 0 $ 27,547,446
NET POSITION:
Investment in Capital Assets,
Net of Related Debt ............................ $190,779,593 $187,500,531 $184,270,349 $181,056,601 $181,481,470
Restricted For:
Capital Projects ............................... 5,024,844 3,878,148 4,216,899 3,784,497 6,491,161
Debt Service ................................... 1,786,492 1,908,750 1,144,118 1,316,900 1,201,300
Culture and Recreation ......................... 3,543,895 3,156,476 3,281,627 3,173,000 3,608,444
Highways and Streets ........................... 285,530 802,946 1,365,820 319,264 811,846
Public Safety .................................. 399,690 493,184 687,810 524,673 547,826
Cemetery Purposes .............................. 3,749,480 4,101,381 4,445,734 4,935,384 5,143,285
Affordable Housing ............................. 852,136 765,794 760,934 726,659 702,211
Parking ........................................ 957,420 957,420 957,420 957,420 0
Unrestricted .................................... 19,550,532 21,126,818 23,689,130 26,747,317 (18,479,928)
Total Net Position ............................ $226,929,612 $224,691,448 $224,819,841 $223,541,715 $181,507,615
Note: (1) Format change in 2014.
68
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
27
Statement of Activities
Governmental Activities
Net (Expense) Revenue and Charges in Net Assets
Audited Fiscal Year Ended April 30
2012 2013 2014 2015 2016
PRIMARY GOVERNMENT:
Governmental Activities(1):
General Government ............................. $ (7,118,227) $(10,619,465) $ (6,979,740) $ (6,690,972) $ (2,961,632)
Highways and Streets ........................... (6,156,640) (6,096,708) (6,290,201) (7,199,098) (7,609,224)
Sanitation ..................................... (2,487,243) (2,453,995) (2,508,978) (1,792,293) (1,510,891)
Culture and Recreation ......................... (5,792,084) (6,637,672) (6,536,383) (6,616,445) (4,721,843)
Public Safety .................................. (11,888,284) (11,861,128) (12,468,455) (13,493,422) (14,795,532)
Interest on Long-Term Debt ..................... (1,420,087) (1,362,715) (1,333,267) (1,357,552) (1,293,742)
Total Governmental Activities ................. $(34,862,565) $(39,031,683) $(36,117,024) $(37,149,782) $(32,892,864)
General Revenues:
Property Taxes ................................. $ 25,428,378 $ 25,051,411 $ 23,744,650 $ 24,468,769 $ 25,006,224
Replacement Taxes .............................. 124,086 130,549 136,430 142,763 115,251
Sales Tax ...................................... 2,577,304 3,183,479 3,047,529 2,851,103 2,889,306
Income Tax ..................................... 1,938,686 2,131,711 2,182,325 2,386,567 2,251,828
Utility Tax .................................... 3,981,548 3,736,586 4,026,972 2,589,941 2,195,830
Real Estate Transfer Tax ....................... 1,215,407 1,209,113 1,633,580 1,224,610 1,288,175
Other Taxes .................................... 368,660 362,869 445,013 391,862 174,760
Telecommunication .............................. 0 0 0 1,364,060 1,355,661
Investment Income .............................. 264,432 491,196 637,193 547,118 145,329
Other .......................................... 33,724 573,705 669,145 73,613 224,220
Transfers ....................................... (37,746) (77,100) (97,000) (168,750) (924,496)
Total ......................................... $ 35,894,479 $ 36,793,519 $ 36,425,837 $ 35,871,656 $ 34,722,088
Change in Net Position .......................... $ 1,031,914 $ (2,238,164) $ 308,813 $ (1,278,126) $ 1,829,224
Net Position - Beginning of Year ................ 225,897,698 226,929,612 224,511,028 224,819,841 179,678,391(2)
Net Position - End of Year ...................... $226,929,612 $224,691,448 $224,819,841 $223,541,715 $181,507,615
Notes: (1) Expenses less Program Revenues of Charges for Services, Operating Grants, and Capital Grants.
(2) As restated.
General Fund
Balance Sheet
Audited as of April 30
2012 2013 2014 2015 2016
ASSETS:
Cash and Investments ............................ $11,986,385 $12,464,462 $16,246,124 $19,453,778 $23,746,130
Property Taxes Receivable ....................... 15,528,966 16,491,864 16,843,533 17,199,721 17,724,843
Other Receivables ............................... 2,645,029 2,971,461 2,604,275 2,135,891 1,812,793
Due from other Funds ............................ 0 0 0 1,879,980 0
Due from other Governments ...................... 0 0 0 0 1,612,648
All Other Assets ................................ 2,332,408 2,582,227 2,441,210 440,788 367,170
Total Assets .................................. $32,492,788 $34,510,014 $38,135,142 $41,110,158 $45,263,584
LIABILITIES:
Accounts Payable/Accrued Payroll ................ $ 474,997 $ 520,902 $ 570,766 $ 476,374 $ 605,858
Deferred Property Tax Revenues(1) ............... 15,528,966 16,491,864 0 0 1,449,668
All Other Liabilities ........................... 2,770,812 2,743,656 3,105,883 2,841,184 1,701,022
Total Liabilities ............................. $18,774,775 $19,756,422 $ 3,676,649 $ 3,317,558 $ 3,756,548
DEFERRED INFLOWS OF RESOURCES:
Property Tax Levies for a Future Period ......... $ 0 $ 0 $16,843,533 $17,199,721 $17,724,843
Other Unavailable Revenues ...................... 0 0 0 76,590 0
Total Deferred Inflows of Resources ........... $ 0 $ 0 $16,843,533 $17,276,311 $17,724,843
FUND BALANCE:
Nonspendable .................................... $ 2,159,403 $ 2,775,449 $ 2,126,990 $ 1,648,832 $ 1,272,224
Restricted ...................................... 957,420 957,420 957,420 957,420 0
Unreserved – Undesignated - Unassigned .......... 10,601,190 11,020,723 14,530,550 17,910,037 22,509,969
Total Fund Balance ............................ $13,718,013 $14,753,592 $17,614,960 $20,516,289 $23,782,193
Total Liabilities, Deferred Inflows of
Resources and Fund Balance ................... $32,492,788 $34,510,014 $38,135,142 $41,110,158 $45,263,584
Note: (1) Format change in 2014.
69
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
28
General Fund
Revenues and Expenditures(1)
Audited Fiscal Year Ended April 30
2012 2013 2014 2015 2016
REVENUES:
Taxes:
Property ....................................... $15,433,117 $15,720,048 $16,683,102 $17,035,476 $17,430,405
Other .......................................... 8,871,480 9,437,860 9,663,772 3,320,856 2,885,141
Intergovernmental Revenues ...................... 0 0 0 6,265,533 6,145,512
Grants and Contributions ........................ 21,715 1,526 10,215 2,002 0
Charges for Services ............................ 2,642,136 2,797,993 3,065,786 2,917,441 3,074,032
Licenses and Permits ............................ 2,475,739 2,450,194 2,477,338 2,821,066 5,222,568
Fines and Forfeitures ........................... 372,607 368,941 297,005 287,333 254,563
Investment Income ............................... 83,782 53,506 57,559 70,843 99,319
Other ........................................... 668,840 1,202,752 709,054 771,515 777,621
Total Revenues ................................ $30,569,416 $32,032,820 $32,963,831 $33,492,065 $35,889,161
EXPENDITURES:
Current:
General Government ............................. $ 9,130,298 $10,804,352 $ 9,184,712 $ 9,304,354 $ 9,624,910
Highways and Streets ........................... 2,139,656 2,044,225 2,293,840 2,371,461 2,157,463
Sanitation ..................................... 2,228,844 2,193,091 2,212,166 2,235,135 2,276,433
Public Safety .................................. 13,378,659 13,552,368 14,074,949 14,311,143 14,879,565
Capital Outlay .................................. 31,190 0 11,490 492,547 1,789,865
Debt Service .................................... 0 0 0 0 173,360
Total Expenditures ............................ $26,908,647 $28,594,036 $27,777,157 $28,714,640 $30,901,596
Excess (Deficiency) of Revenues
Over Expenditures .............................. $ 3,660,769 $ 3,438,784 $ 5,186,674 $ 4,777,425 $ 4,987,565
OTHER FINANCING SOURCES (USES):
Loan Proceeds ................................... $ 0 $ 0 $ 0 $ 0 $ 830,080
Transfers In .................................... 0 107,737 0 57,162 0
Transfers Out ................................... (2,170,775) (2,510,942) (2,325,306) (1,933,258) (2,551,741)
Total Other Financing Sources and Uses, Net .... $(2,170,775) $(2,403,205) $(2,325,306) $(1,876,096) $(1,721,661)
Net Change in Fund Balance ...................... $ 1,489,994 $ 1,035,579 $ 2,861,368 $ 2,901,329 $ 3,265,904
Fund Balance - Beginning of Year ................ $12,228,019 $13,718,013 $14,753,592 $17,614,960 $20,516,289
Fund Balance - End of Year ...................... $13,718,013 $14,753,592 $17,614,960 $20,516,289 $23,782,193
Note: (1) This condensed financial information has been excerpted from the full Comprehensive Annual Financial Reports of
The City of Lake Forest. The full financial statements, together with report of the City’s independent auditors,
are available upon request. The General Corporate Fund is accounted for using the modified accrual basis of
accounting. Revenues are recognized when susceptible to accrual (both measurable and available), Expenditures,
other than interest on long-term debt, are recorded when the liability is incurred, if measurable. Property taxes
due within the current fiscal year and collected within the current fiscal year or within 60 days of the end of
the fiscal year are recorded as revenue. As a result, the current year tax levy, which has a payment due date
after the end of the current fiscal year, is not recorded as revenue but rather as a receivable with a
corresponding amount of deferred revenue.
70
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
29
General Fund
Budget Financial Information
Budget
Fiscal Year
2017
REVENUES:
Property Taxes .................................................... $17,994,691
Sales Tax ......................................................... 2,750,901
Telecommunication and Utility Tax .................................. 3,618,191
State Income Tax/Local Use ......................................... 2,556,308
Other Taxes ....................................................... 416,425
Building Permits ................................................... 1,673,075
Licenses .......................................................... 1,478,500
Fines ............................................................. 285,250
Interest .......................................................... 80,012
Charges for Services ............................................... 2,139,730
Miscellaneous ..................................................... 652,650
Total Revenues ................................................... $33,645,733
EXPENDITURES:
Office of the City Manager ......................................... $915,869
City Council ...................................................... 415,805
Cable TV .......................................................... 230,846
Finance ........................................................... 831,522
Information Technology ............................................. 629,645
CROYA ............................................................. 608,049
Police ............................................................ 9,170,749
Fire .............................................................. 6,250,038
Human Resources.................................................... 525,405
Community Development .............................................. 1,728,970
Public Works/Engineering ........................................... 7,037,649
Non-Department .................................................... 4,037,395
Total Expenditures ............................................... $32,381,942
Revenues over (under) Expenditures ................................. $ 1,263,791(1)
Note: (1) As of April 4, 2017, The City expects FY2017 revenue to cover
all FY2017 expenditures.
EMPLOYEE RETIREMENT AND OTHER POSTEMPLOYMENT BENEFITS OBLIGATIONS
See APPENDIX D herein for a discussion of the City’s employee retirement and other postemployment
benefits obligations.
REGISTRATION, TRANSFER AND EXCHANGE
Registration
The registered owner of a Bond will be deemed and regarded as the absolute owner thereof for the purpose of
receiving payment of, or on account of, the principal of, premium, if any, or interest thereon and for all other purposes
whatsoever, and all such payments so made to such registered owner or upon his order shall be valid and effectual to
satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the City nor the
Bond Registrar will be affected by any notice to the contrary.
71
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
30
Transfers and Exchanges
The transfer of Bonds will be registerable only upon the registration books maintained by the City for that
purpose at the principal corporate trust office of the Bond Registrar, by the registered owner thereof or by his attorney
duly authorized in writing, upon surrender thereof together with an instrument of transfer satisfactory to the Bond
Registrar and duly executed by the registered owner or his duly authorized agent. Upon such surrender for transfer,
the City will execute and the Bond Registrar will authenticate and deliver a new Bond or Bonds of any authorized
denominations, registered in the name of the transferee, and of the same aggregate principal amount, maturity and
interest rate as the surrendered Bond.
Bonds may be exchanged for an equal aggregate principal amount of Bonds of the same maturity and interest
rate and of any authorized denominations, upon surrender thereof as the principal corporate trust office of the Bond
Registrar with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner
or his duly authorized agent.
For every such exchange or registration of transfer of Bonds, the City or the Bond Registrar may make a
charge sufficient to reimburse it for any tax or other governmental charge required to be paid with respect to such
exchange or registration of transfer, except in the case of the issuance of a Bond or Bonds for the unredeemed portion
of a Bond surrendered for redemption. No charge will be made in connection with such exchange or registration of
transfer to pay the cost of preparing each new Bond issued upon such exchange or registration of transfer.
The Bond Registrar shall not be required to transfer or exchange any Bond during the period beginning at the
close of business on the 1st day of the month of any interest payment date on such Bond and ending at the opening of
business on such interest payment date, nor to transfer or exchange any Bond after notice calling such Bond for
redemption has been mailed, nor during a period of fifteen (15) days next preceding mailing of a notice of redemption
of any Bonds.
TAX EXEMPTION
Federal tax law contains a number of requirements and restrictions which apply to the Bonds, including
investment restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the proper
use of bond proceeds and the facilities financed therewith, and certain other matters. The City has covenanted to
comply with all requirements that must be satisfied in order for the interest on the Bonds to be excludable from gross
income for federal income tax purposes. Failure to comply with certain of such covenants could cause interest on the
Bonds to become includable in gross income for federal income tax purposes retroactively to the date of issuance of the
Bonds.
Subject to the City’s compliance with the above-referenced covenants, under present law, in the opinion of
Bond Counsel, interest on the Bonds is excludable from the gross income of the owners thereof for federal income tax
purposes and is not included as an item of tax preference in computing the federal alternative minimum tax for
individuals and corporations, but interest on the Bonds is taken into account, however, in computing an adjustment used
in determining the federal alternative minimum tax for certain corporations.
In rendering its opinion, Bond Counsel will rely upon certifications of the City with respect to certain material
facts within the City’s knowledge. Bond Counsel’s opinion represents its legal judgment based upon its review of the
law and the facts that it deems relevant to render such opinion and is not a guarantee of a result.
72
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
31
The Internal Revenue Code of 1986, as amended (the “Code”), includes provisions for an alternative minimum
tax (“AMT”) for corporations in addition to the regular corporate tax in certain cases. The AMT, if any, depends upon
the corporation’s alternative minimum taxable income (“AMTI”), which is the corporation’s taxable income with
certain adjustments. One of the adjustment items used in computing the AMTI of a corporation (with certain
exceptions) is an amount equal to 75% of the excess of such corporation’s “adjusted current earnings” over an amount
equal to its AMTI (before such adjustment item and the alternative tax net operating loss deduction). “Adjusted current
earnings” would include certain tax-exempt interest, including interest on the Bonds.
Ownership of the Bonds may result in collateral federal income tax consequences to certain taxpayers,
including, without limitation, corporations subject to the branch profits tax, financial institutions, certain insurance
companies, certain S corporations, individual recipients of Social Security or Railroad Retirement benefits and
taxpayers who may be deemed to have incurred (or continued) indebtedness to purchase or carry tax-exempt
obligations. Prospective purchasers of the Bonds should consult their tax advisors as to applicability of any such
collateral consequences.
The issue price (the “Issue Price”) for each maturity of the Bonds is the price at which a substantial amount of
such maturity of the Bonds is first sold to the public. The Issue Price of a maturity of the Bonds may be different from
the price set forth, or the price corresponding to the yield set forth, in the addendum to this Official Statement.
If the Issue Price of a maturity of the Bonds is less than the principal amount payable at maturity, the difference
between the Issue Price of each such maturity, if any, of the Bonds (the “OID Bonds”) and the principal amount
payable at maturity is original issue discount.
For an investor who purchases an OID Bond in the initial public offering at the Issue Price for such maturity
and who holds such OID Bond to its stated maturity, subject to the condition that the City complies with the covenants
discussed above, (a) the full amount of original issue discount with respect to such OID Bond constitutes interest which
is excludable from the gross income of the owner thereof for federal income tax purposes; (b) such owner will not
realize taxable capital gain or market discount upon payment of such OID Bond at its stated maturity; (c) such original
issue discount is not included as an item of tax preference in computing the alternative minimum tax for individuals and
corporations under the Code, but is taken into account in computing an adjustment used in determining the alternative
minimum tax for certain corporations under the Code, as described above; and (d) the accretion of original issue
discount in each year may result in an alternative minimum tax liability for corporations or certain other collateral
federal income tax consequences in each year even though a corresponding cash payment may not be received until a
later year. Based upon the stated position of the Illinois Department of Revenue under Illinois income tax law, accreted
original issue discount on such OID Bonds is subject to taxation as it accretes, even though there may not be a
corresponding cash payment until a later year. Owners of OID Bonds should consult their own tax advisors with
respect to the state and local tax consequences of original issue discount on such OID Bonds.
Owners of Bonds who dispose of Bonds prior to the stated maturity (whether by sale, redemption or otherwise),
purchase Bonds in the initial public offering, but at a price different from the Issue Price or purchase Bonds subsequent
to the initial public offering should consult their own tax advisors.
If a Bond is purchased at any time for a price that is less than the Bond’s stated redemption price at maturity or,
in the case of a OID Bond, its Issue Price plus accreted original issue discount (the “Revised Issue Price”), the
purchaser will be treated as having purchased a Bond with market discount subject to the market discount rules of the
Code (unless a statutory de minimis rule applies). Accrued market discount is treated as taxable ordinary income and is
recognized when a Bond is disposed of (to the extent such accrued discount does not exceed gain realized) or, at the
purchaser’s election, as it accrues. Such treatment would apply to any purchaser who purchases an OID Bond for a
price that is less than its Revised Issue Price. The applicability of the market discount rules may adversely affect the
liquidity or secondary market price of such Bond. Purchasers should consult their own tax advisors regarding the
potential implications of market discount with respect to the Bonds.
73
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
32
An investor may purchase a Bond at a price in excess of its stated principal amount. Such excess is
characterized for federal income tax purposes as “bond premium” and must be amortized by an investor on a constant
yield basis over the remaining term of the Bond in a manner that takes into account potential call dates and call prices.
An investor cannot deduct amortized bond premium relating to a tax-exempt bond. The amortized bond premium is
treated as a reduction in the tax-exempt interest received. As bond premium is amortized, it reduces the investor’s
basis in the Bond. Investors who purchase a Bond at a premium should consult their own tax advisors regarding the
amortization of bond premium and its effect on the Bond’s basis for purposes of computing gain or loss in connection
with the sale, exchange, redemption or early retirement of the Bond.
There are or may be pending in the Congress of the United States legislative proposals, including some that
carry retroactive effective dates, that, if enacted, could alter or amend the federal tax matters referred to above or affect
the market value of the Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or
whether, if enacted, it would apply to bonds issued prior to enactment. Prospective purchasers of the Bonds should
consult their own tax advisors regarding any pending or proposed federal tax legislation. Bond Counsel expresses no
opinion regarding any pending or proposed federal tax legislation.
The Internal Revenue Service (the “Service”) has an ongoing program of auditing tax-exempt obligations to
determine whether, in the view of the Service, interest on such tax-exempt obligations is includable in the gross income
of the owners thereof for federal income tax purposes. It cannot be predicted whether or not the Service will
commence an audit of the Bonds. If an audit is commenced, under current procedures the Service may treat the City as
a taxpayer and the Bondholders may have no right to participate in such procedure. The commencement of an audit
could adversely affect the market value and liquidity of the Bonds until the audit is concluded, regardless of the ultimate
outcome.
Payments of interest on, and proceeds of the sale, redemption or maturity of, tax-exempt obligations, including
the Bonds, are in certain cases required to be reported to the Service. Additionally, backup withholding may apply to
any such payments to any Bond owner who fails to provide an accurate Form W-9 Request for Taxpayer Identification
Number and Certification, or a substantially identical form, or to any Bond owner who is notified by the Service of a
failure to report any interest or dividends required to be shown on federal income tax returns. The reporting and
backup withholding requirements do not affect the excludability of such interest from gross income for federal tax
purposes.
Interest on the Bonds is not exempt from present State of Illinois income taxes. Ownership of the Bonds may
result in other state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any
such collateral consequences arising with respect to the Bonds. Prospective purchasers of the Bonds should consult
their tax advisors regarding the applicability of any such state and local taxes.
See APPENDIX C for the proposed form of Bond Counsel opinion for the Bonds.
QUALIFIED TAX-EXEMPT OBLIGATIONS
Subject to the City’s compliance with certain covenants, in the opinion of Bond Counsel, the Bonds are
“qualified tax-exempt obligations” under the small issuer exception provided under Section 265(b)(3) of the Code,
which affords banks and certain other financial institutions more favorable treatment of their deduction for interest
expense than would otherwise be allowed under Section 265(b)(2) of the Code.
74
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
33
CONTINUING DISCLOSURE
The City will enter into a Continuing Disclosure Undertaking (the “Undertaking”) for the benefit of the
beneficial owners of the Bonds to send certain information annually and to provide notice of certain events to the
Municipal Securities Rulemaking Board (the “MSRB”) pursuant to the requirements of Section (b)(5) of Rule 15c2-12
(the “Rule”) adopted by the Securities and Exchange Commission (the “Commission”) under the Securities Exchange
Act of 1934. No person, other than the City, has undertaken, or is otherwise expected, to provide continuing
disclosure with respect to the Bonds. The information to be provided on an annual basis, the events which will be
noticed on an occurrence basis and a summary of other terms of the Undertaking, including termination, amendment
and remedies, are set forth below under “THE UNDERTAKING.”
A failure by the City to comply with the Undertaking will not constitute a default under the Bond Ordinance
and beneficial owners of the Bonds are limited to the remedies described in the Undertaking. The City must report any
failure to comply with the Undertaking in accordance with the Rule. Any broker, dealer or municipal securities dealer
must consider such report before recommending the purchase or sale of the Bonds in the secondary market.
Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market price.
THE UNDERTAKING
The following is a brief summary of certain provisions of the Undertaking of the City and does not purport to
be complete. The statements made under this caption are subject to the detailed provisions of the Undertaking, a copy
of which is available upon request from the City.
Annual Financial Information Disclosure
The City covenants that it will disseminate its Annual Financial Information and its Audited Financial
Statements, if any (as described below) to the MSRB in such manner and format and accompanied by identifying
information as is prescribed by the MSRB or the Commission at the time of delivery of such information. At present,
such dissemination is made through the MSRB’s Electronic Municipal Market Access system referred to as EMMA
(“EMMA”). The City is required to deliver such information within 210 days after the last day of the City’s fiscal year
(currently on April 30). If Audited Financial Statements are not available when the Annual Financial Information is
filed, the City will file unaudited financial statements. MSRB Rule G-32 requires all EMMA filings to be in word-
searchable PDF format. This requirement extends to all documents to be filed with EMMA, including financial
statements and other externally prepared reports.
“Annual Financial Information” means
1. The table under the heading of Retailers’ Occupation, Service Occupation and Use Tax
within this Official Statement;
2. All of the tables under the heading PROPERTY ASSESSMENT AND TAX
INFORMATION within this Official Statement;
3. All of the tables under the heading DEBT INFORMATION within this Official Statement; and
4. All of the tables under the heading FINANCIAL INFORMATION (Excluding Budget and
Interim Financial Information) within this Official Statement.
“Audited Financial Statements” means financial statements of the City as audited annually by independent
certified public accountants. Audited Financial Statements are expected to continue to be prepared according to
Generally Accepted Accounting Principles as applicable to governmental units (i.e., as subject to the pronouncements
of the Governmental Accounting Standards Board and subject to any express requirements of State law).
75
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
34
Reportable Events Disclosure
The City covenants that it will disseminate in a timely manner (not in excess of ten business days after the
occurrence of the Reportable Event) Reportable Events Disclosure to the MSRB in such manner and format and
accompanied by identifying information as is prescribed by the MSRB or the Commission at the time of delivery of
such information. MSRB Rule G-32 requires all EMMA filings to be in word-searchable PDF format. This
requirement extends to all documents to be filed with EMMA, including financial statements and other externally
prepared reports. The “Events” are:
1. Principal and interest payment delinquencies
2. Non-payment related defaults, if material
3. Unscheduled draws on debt service reserves reflecting financial difficulties
4. Unscheduled draws on credit enhancements reflecting financial difficulties
5. Substitution of credit or liquidity providers, or their failure to perform
6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations
of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or
determinations with respect to the tax status of the security, or other material events affecting the tax
status of the security
7. Modifications to the rights of security holders, if material
8. Bond calls, if material, and tender offers
9. Defeasances
10. Release, substitution or sale of property securing repayment of the securities, if material
11. Rating changes
12. Bankruptcy, insolvency, receivership or similar event of the City*
13. The consummation of a merger, consolidation, or acquisition involving the City or the sale of all or
substantially all of the assets of the City, other than in the ordinary course of business, the entry into a
definitive agreement to undertake such an action or the termination of a definitive agreement relating to
any such actions, other than pursuant to its terms, if material
14. Appointment of a successor or additional trustee or the change of name of a trustee, if material.
Consequences of Failure of the City to Provide Information
The City shall give notice in a timely manner to the MSRB of any failure to provide disclosure of Annual
Financial Information and Audited Financial Statements when the same are due under the Undertaking.
In the event of a failure of the City to comply with any provision of the Undertaking, the beneficial owner of
any Bond may seek mandamus or specific performance by court order, to cause the City to comply with its obligations
under the Undertaking. A default under the Undertaking shall not be deemed a default under the Bond Ordinance, and
the sole remedy under the Undertaking in the event of any failure of the City to comply with the Undertaking shall be
an action to compel performance.
* This event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the City in a
proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has
assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing
body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order
confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially
all of the assets or business of the City. 76
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
35
Amendment; Waiver
Notwithstanding any other provision of the Undertaking, the City by ordinance authorizing such amendment or
waiver, may amend the Undertaking, and any provision of the Undertaking may be waived, if:
(a) (i) The amendment or the waiver is made in connection with a change in circumstances that arises
from a change in legal requirements, including, without limitation, pursuant to a “no-action” letter issued by
the Commission, a change in law, or a change in the identity, nature, or status of the City, or type of business
conducted; or
(ii) The Undertaking, as amended, or the provision, as waived, would have complied with the
requirements of the Rule at the time of the primary offering, after taking into account any amendments or
interpretations of the Rule, as well as any change in circumstances; and
(b) The amendment or waiver does not materially impair the interests of the beneficial owners of the
Bonds, as determined by parties unaffiliated with the City (such as Bond Counsel).
In the event that the Commission or the MSRB or other regulatory authority approves or requires Annual
Financial Information or notices of a Reportable Event to be filed with a central post office, governmental agency or
similar entity other than the MSRB or in lieu of the MSRB, the City shall, if required, make such dissemination to such
central post office, governmental agency or similar entity without the necessity of amending the Undertaking.
Termination of Undertaking
The Undertaking shall be terminated if the City shall no longer have any legal liability for any obligation on or
relating to repayment of the Bonds under the Bond Ordinance. The City shall give notice to the MSRB in a timely
manner if this paragraph is applicable.
Additional Information
Nothing in the Undertaking shall be deemed to prevent the City from disseminating any other information,
using the means of dissemination set forth in the Undertaking or any other means of communication, or including any
other information in any Annual Financial Information or Audited Financial Statements or notice of occurrence of a
Reportable Event, in addition to that which is required by the Undertaking. If the City chooses to include any
information from any document or notice of occurrence of a Reportable Event in addition to that which is specifically
required by the Undertaking, the City shall have no obligation under the Undertaking to update such information or
include it in any future disclosure or notice of occurrence of a Reportable Event.
Dissemination of Information; Dissemination Agent
When filings are required to be made with the MSRB in accordance with the Undertaking, such filings are
required to be made through EMMA for municipal securities disclosure or through any other electronic format or
system prescribed by the MSRB for purposes of the Rule.
The City may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its
obligations under the Undertaking, and may discharge any such Agent, with or without appointing a successor
Dissemination Agent.
77
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
36
OPTIONAL REDEMPTION
The Bonds maturing on or after December 15, 2026, are subject to redemption prior to maturity at the option of
the City in whole or in part on any date on or after December 15, 2025, at a price of par and accrued interest. If less
than all the Bonds are called, they shall be redeemed in such principal amounts and from such maturities as determined
by the City and within any maturity by lot.
The Bond Registrar will give notice of redemption, identifying the Bonds (or portions thereof) to be redeemed,
by mailing a copy of the redemption notice by first class mail not less than thirty (30) days nor more than sixty (60)
days prior to the date fixed for redemption to the registered owner of each Bond (or portion thereof) to be redeemed at
the address shown on the registration books maintained by the Bond Registrar. Unless moneys sufficient to pay the
redemption price of the Bonds to be redeemed are received by the Bond Registrar prior to the giving of such notice of
redemption, such notice may, at the option of the City, state that said redemption will be conditional upon the receipt of
such moneys by the Bond Registrar on or prior to the date fixed for redemption. If such moneys are not received, such
notice will be of no force and effect, the City will not redeem such Bonds, and the Bond Registrar will give notice, in
the same manner in which the notice of redemption has been given, that such moneys were not so received and that
such Bonds will not be redeemed. Otherwise, prior to any redemption date, the City will deposit with the Bond
Registrar an amount of money sufficient to pay the redemption price of all the Bonds or portions of Bonds which are to
be redeemed on the date.
Subject to the provisions for a conditional redemption described above, notice of redemption having been given
as described above and in the Bond Ordinance, the Bonds or portions of Bonds so to be redeemed will, on the
redemption date, become due and payable at the redemption price therein specified, and from and after such date
(unless the City shall default in the payment of the redemption price) such Bonds or portions of Bonds shall cease to
bear interest. Upon surrender of such Bonds for redemption in accordance with said notice, such Bonds will be paid by
the Bond Registrar at the redemption price.
LITIGATION
There is no litigation of any nature now pending or threatened restraining or enjoining the issuance, sale,
execution or delivery of the Bonds, or in any way contesting or affecting the validity of the Bonds or any proceedings
of the City taken with respect to the issuance or sale thereof.
CERTAIN LEGAL MATTERS
Certain legal matters incident to the authorization, issuance and sale of the Bonds are subject to the approving
legal opinion of Chapman and Cutler LLP, Chicago, Illinois, as Bond Counsel (the “Bond Counsel”), who has been
retained by, and acts as, Bond Counsel to the City. Bond Counsel has not been retained or consulted on disclosure
matters and has not undertaken to review or verify the accuracy, completeness or sufficiency of this Official Statement
or other offering material relating to the Bonds and assumes no responsibility for the statements or information
contained in or incorporated by reference in this Official Statement, except that in its capacity as Bond Counsel,
Chapman and Cutler LLP has, at the request of the City, reviewed only those portions of this Official Statement
involving the description of the Bonds, the security for the Bonds (excluding forecasts, projections, estimates or any
other financial or economic information in connection therewith), the description of the federal tax exemption of the
interest on the Bonds and the “bank-qualified” status of the Bonds. This review was undertaken solely at the request
and for the benefit of the City and did not include any obligation to establish or confirm factual matters set forth herein.
OFFICIAL STATEMENT AUTHORIZATION
This Official Statement has been authorized for distribution to prospective purchasers of the Bonds. All
statements, information, and statistics herein are believed to be correct but are not guaranteed by the consultants or by
the City, and all expressions of opinion, whether or not so stated, are intended only as such.
78
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
*Subject to change.
37
INVESTMENT RATING
The City has supplied certain information and material concerning the Bonds and the City to Moody’s,
including certain information and materials which may not have been included in this Official Statement, as part of its
application for an investment rating on the Bonds. A rating reflects only the views of Moody’s and an explanation of
the significance of such rating may be obtained from Moody’s. Generally, such rating service bases its rating on such
information and material, and also on such investigations, studies and assumptions that it may undertake independently.
There is no assurance that such rating will continue for any given period of time or that it may not be lowered or
withdrawn entirely by such rating service if, in its judgment, circumstances so warrant. Any such downward change in
or withdrawal of such rating may have an adverse effect on the secondary market price of the Bonds. An explanation
of the significance of the investment rating may be obtained from the rating agency: Moody’s Investors Service, 7
World Trade Center at 250 Greenwich Street, New York, New York 10007, telephone 212-553-1658. The City will
provide appropriate periodic credit information to the rating service to maintain a rating on the Bonds.
UNDERWRITING
The Bonds were offered for sale by the City at a public, competitive sale on May 15, 2017. The best bid
submitted at the sale was submitted by ____________________ (the “Underwriter”). The City awarded the contract
for sale of the Bonds to the Underwriter at a price of $___________. The Underwriter has represented to the City that
the Bonds have been subsequently re-offered to the public initially at the yields or prices set forth in the addendum to
this Official Statement.
MUNICIPAL ADVISOR
The City has engaged Speer Financial, Inc. as municipal advisor (the “Municipal Advisor”) in connection with
the issuance and sale of the Bonds. The Municipal Advisor is a Registered Municipal Advisor in accordance with the
rules of the MSRB. The Municipal Advisor will not participate in the underwriting of the Bonds. The financial
information included in the Official Statement has been compiled by the Municipal Advisor. Such information does not
purport to be a review, audit or certified forecast of future events and may not conform with accounting principles
applicable to compilations of financial information. The Municipal Advisor is not obligated to undertake any
independent verification of or to assume any responsibility for the accuracy, completeness or fairness of the information
contained in this Official Statement, nor is the Municipal Advisor obligated by the City’s continuing disclosure
undertaking.
CERTIFICATION
We have examined this Official Statement dated May __, 2017, for the $9,450,000* General Obligation Bonds,
Series 2017, believe it to be true and correct and will provide to the purchaser of the Bonds at the time of delivery a
certificate confirming to the purchaser that to the best of our knowledge and belief information in the Official Statement
was at the time of acceptance of the bid for the Bonds and, including any addenda thereto, was at the time of delivery
of the Bonds true and correct in all material respects and does not include any untrue statement of a material fact, nor
does it omit the statement of any material fact required to be stated therein, or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading.
/s/ _ROBERT T.E. LANSING__________________ /s/ ROBERT R. KIELY, JR.
Mayor City Manager
CITY OF LAKE FOREST CITY OF LAKE FOREST
Lake County, Illinois Lake County, Illinois
*Subject to change.
79
APPENDIX A
CITY OF LAKE FOREST, LAKE COUNTY, ILLINOIS
FISCAL YEAR 2016 COMPREHENSIVE ANNUAL FINANCIAL REPORT
80
APPENDIX B
DESCRIBING BOOK-ENTRY-ONLY ISSUANCE
1. The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for
the Bonds (the “Securities”). The Securities will be issued as fully-registered securities registered in the name of Cede
& Co. (DTC’s partnership nominee) or such other name as may be requested by an authorized representative of DTC.
One fully-registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal
amount of such issue, and will be deposited with DTC.
2. DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the
New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of
the Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code,
and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934.
DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and
municipal debt issues, and money market instruments (from over 100 countries) that DTC’s participants (“Direct
Participants”) deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and
other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges
between Direct Participants’ accounts. This eliminates the need for physical movement of securities certificates. Direct
Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing
Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed
Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its
regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities
brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has Standard & Poor’s
rating: AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission.
More information about DTC can be found at www.dtcc.com.
3. Purchases of Securities under the DTC system must be made by or through Direct Participants, which
will receive a credit for the Securities on DTC’s records. The ownership interest of each actual purchaser of each
Security (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records. Beneficial
Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected
to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings,
from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of
ownership interests in the Securities are to be accomplished by entries made on the books of Direct and Indirect
Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their
ownership interests in Securities, except in the event that use of the book-entry system for the Securities is
discontinued.
4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are
registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an
authorized representative of DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co.
or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual
Beneficial Owners of the Securities; DTC’s records reflect only the identity of the Direct Participants to whose accounts
such Securities are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will
remain responsible for keeping account of their holdings on behalf of their customers.
B-1
81
5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants
to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time.
Beneficial Owners of Securities may wish to take certain steps to augment the transmission to them of notices of
significant events with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to
the Security documents. For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding
the Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative,
Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be
provided directly to them.
6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being
redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be
redeemed.
7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to
Securities unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual
procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy
assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts Securities are credited
on the record date (identified in a listing attached to the Omnibus Proxy).
8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede &
Co., or such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to credit
Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the City or the
Paying Agent, on payable date in accordance with their respective holdings shown on DTC’s records. Payments by
Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with
securities held for the accounts of customers in bearer form or registered in “street name,” and will be the
responsibility of such Participant and not of DTC, the Paying Agent, or the City, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend
payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the
responsibility of the City or the Paying Agent, disbursement of such payments to Direct Participants will be the
responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct
and Indirect Participants.
9. A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its
Participant, to any Tender/Remarketing Agent, and shall effect delivery of such Securities by causing the Direct
Participant to transfer the Participant’s interest in the Securities, on DTC’s records, to any Tender/Remarketing Agent.
The requirement for physical delivery of Securities in connection with an optional tender or a mandatory purchase will
be deemed satisfied when the ownership rights in the Securities are transferred by Direct Participants on DTC’s records
and followed by a book-entry credit of tendered Securities to any Tender/Remarketing Agent’s DTC account.
10. DTC may discontinue providing its services as depository with respect to the Securities at any time by
giving reasonable notice to the City or the Paying Agent. Under such circumstances, in the event that a successor
depository is not obtained, Security certificates are required to be printed and delivered.
11. The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a
successor securities depository). In that event, Security certificates will be printed and delivered to DTC.
12. The information in this section concerning DTC and DTC’s book-entry system has been obtained from
sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof.
B-2
82
APPENDIX C
PROPOSED FORM OF OPINION OF BOND COUNSEL
83
APPENDIX D
CITY OF LAKE FOREST, LAKE COUNTY, ILLINOIS
EXCERPTS OF FISCAL YEAR 2016 COMPREHENSIVE ANNUAL FINANCIAL REPORT
RELATING TO THE CITY’S PENSION PLANS AND OTHER POSTEMPLOYMENT BENEFITS
84
OFFICIAL BID FORM
(Open Speer Auction)
City of Lake Forest May 15, 2017
220 East Deerpath Speer Financial, Inc.
Lake Forest, Illinois 60045
City Council Members:
For the $9,450,000* General Obligation Bonds, Series 2017 (the “Bonds”), of the City of Lake Forest, Lake County, Illinois (the “City”), as described
in the annexed Official Notice of Sale, which is expressly made a part of this bid, we will pay you $_______________________ (no less than $9,374,400) for
Bonds bearing interest as follows (each rate a multiple of 1/8 or 1/100 of 1%). The dated date and delivery date for the Bonds is expected to be on or about June 5,
2017. The premium or discount, if any, is subject to adjustment allowing the same $___________ gross spread per $1,000 bond as bid herein.
MATURITIES* – DECEMBER 15
$505,000 ................. 2023 $575,000 .................. 2028 $685,000 .................. 2033
515,000 ................. 2024 595,000 .................. 2029 715,000 .................. 2034
530,000 ................. 2025 615,000 .................. 2030 740,000 .................. 2035
545,000 ................. 2026 640,000 .................. 2031 770,000 .................. 2036
560,000 ................. 2027 660,000 .................. 2032 800,000 .................. 2037
Any consecutive maturities may be aggregated into term bonds at the option of the bidder,
in which case the mandatory redemption provisions shall be on the same schedule as above.
The Bonds are to be executed and delivered to us in accordance with the terms of this bid accompanied by the approving legal opinion of Chapman and
Cutler LLP, Chicago, Illinois. The City will pay for the legal opinion. The underwriter agrees to apply for CUSIP numbers within 24 hours and pay the fee
charged by the CUSIP Service Bureau and will accept the Bonds with the CUSIP numbers as entered on the Bonds.
As evidence of our good faith, if we are the winning bidder, we will wire transfer the amount of TWO PERCENT OF PAR (the “Deposit”) WITHIN
TWO HOURS after the bid opening time to the City’s good faith bank and under the terms provided in the Official Notice of Sale for the Bonds. Alternatively, we
have wire transferred or enclosed herewith a check payable to the City in the amount of the Deposit under the terms provided in the Official Notice of Sale for the
Bonds.
Form of Deposit (Check One) Account Manager Information
Prior to Bid Opening: Name
Certified/Cashier’s Check [ ]
Wire Transfer [ ] Address
Within TWO hours of Bidding: By
Wire Transfer [ ]
City State/Zip
Amount: $189,000
Direct Phone ( )
FAX Number ( )
E-Mail Address
The foregoing bid is hereby accepted and the Bonds sold, and receipt is hereby acknowledged of the good faith Deposit which is being held in accordance
with the terms of the annexed Official Notice of Sale.
CITY OF LAKE FOREST, LAKE COUNTY, ILLINOIS
Mayor
*Subject to change.
----------------------- NOT PART OF THE BID0----------------------
(Calculation of true interest cost)
Bid Post Sale Revision
Gross Interest $
Less Premium/Plus Discount $
True Interest Cost $
True Interest Rate % %
TOTAL BOND YEARS __________
AVERAGE LIFE __________ Years Years
85
OFFICIAL NOTICE OF SALE
$9,450,000*
CITY OF LAKE FOREST
Lake County, Illinois
General Obligation Bonds, Series 2017
(Open Speer Auction)
The City of Lake Forest, Lake County, Illinois (the “City”), will receive open auction electronic bids on the SpeerAuction (“SpeerAuction”)
website address “www.SpeerAuction.com” for its $9,450,000* General Obligation Bonds, Series 2017 (the “Bonds”), on an all or none basis between
10:45 A.M. and 11:00 A.M., C.D.T., Monday, May 15, 2017. To bid, bidders must have: (1) completed the registration form on the SpeerAuction
website, and (2) requested and received admission to the City’s sale (as described below). Award will be made or all bids rejected at a meeting of the City
Council on that date. The City reserves the right to change the date or time for receipt of bids. Any such change shall be made not less than twenty-four
(24) hours prior to the revised date and time for receipt of the bids for the Bonds and shall be communicated by publishing the changes in the Amendments
Page of the SpeerAuction webpage and through Thompson Municipal News.
The Bonds are valid and legally binding upon the City payable both as to principal and interest from ad valorem taxes levied against all taxable
property therein without limitation as to rate or amount.
Bidding Details
Bidders should be aware of the following bidding details associated with the sale of the Bonds.
(1) All bids must be submitted on the SpeerAuction website at www.SpeerAuction.com. No telephone, telefax or personal
delivery bids will be accepted. The use of SpeerAuction shall be at the bidder’s risk and expense and the City shall have
no liability with respect thereto, including (without limitation) liability with respect to incomplete, late arriving and non-
arriving bid. Any questions regarding bidding on the SpeerAuction website should be directed to the Auction
Administrator, Grant Street Group, at (412) 391-5555 x 370.
(2) If any new bid in the auction becomes a leading bid two (2) minutes prior to the end of the auction, then the auction will be
automatically extended by two (2) minutes from the time such bid was received by SpeerAuction. The auction end time will
continue to be extended, indefinitely, until a single leading bid remains the leading bid for at least two minutes.
(3) Bidders may change and submit bids as many times as they like during the bidding time period; provided, however, each
and any bid submitted subsequent to a bidder’s initial bid must result in a lower true interest cost (“TIC”) with respect to a
bid, when compared to the immediately preceding bid of such bidder. In the event that the revised bid does not produce a
lower TIC with respect to a bid, the prior bid will remain valid.
(4) The last bid submitted by a bidder before the end of the bidding time period will be compared to all other final bids
submitted by others to determine the winning bidder or bidders.
(5) During the bidding, no bidder will see any other bidder’s bid, but bidders will be able to see the ranking of their bid relative
to other bids (i.e., “Leader”, “Cover”, “3rd” etc.)
(6) On the Auction Page, bidders will be able to see whether a bid has been successfully submitted.
Rules of SpeerAuction
Bidders must comply with the Rules of SpeerAuction in addition to the requirements of this Official Notice of Sale. To the extent there is a
conflict between the Rules of SpeerAuction and this Official Notice of Sale, this Official Notice of Sale shall control.
*Subject to change.
86
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
Official Notice of Sale, Page 2 of 4
*Subject to change.
Rules
(1) A bidder (“Bidder”) submitting a winning bid (“Winning Bid”) is irrevocably obligated to purchase the Bonds at the rates
and prices of the winning bid, if acceptable to the City, as set forth in the related Official Notice of Sale. Winning Bids are
not officially awarded to Winning Bidders until formally accepted by the City.
(2) Neither the City, Speer Financial, Inc., nor Grant Street Group (the “Auction Administrator”) is responsible for
technical difficulties that result in the loss of the Bidder’s internet connection with SpeerAuction, slowness in
transmission of bids, or other technical problems.
(3) If for any reason a Bidder is disconnected from the Auction Page during the auction after having submitted a Winning Bid,
such bid is valid and binding upon such Bidder, unless the City exercises its right to reject bids, as set forth herein.
(4) Bids which generate error messages are not accepted until the error is corrected and the bid is received prior to the
deadline.
(5) Bidders accept and agree to abide by all terms and conditions specified in the Official Notice of Sale (including
amendments, if any) related to the auction.
(6) Neither the City, Speer Financial, Inc., nor the Auction Administrator is responsible to any bidder for any defect or
inaccuracy in the Official Notice of Sale, amendments, or Preliminary Official Statement as they appear on SpeerAuction.
(7) Only Bidders who request and receive admission to an auction may submit bids. SpeerAuction and the Auction
Administrator reserve the right to deny access to SpeerAuction website to any Bidder, whether registered or not, at any time
and for any reason whatsoever, in their sole and absolute discretion.
(8) Neither the City, Speer Financial, Inc., nor the Auction Administrator is responsible for protecting the confidentiality of a
Bidder’s SpeerAuction password.
(9) If two bids submitted in the same auction by two or more different Bidders result in same True Interest Cost, the first
confirmed bid received by SpeerAuction prevails. Any change to a submitted bid constitutes a new bid, regardless of
whether there is a corresponding change in True Interest Cost.
(10) Bidders must compare their final bids to those shown on the Observation Page immediately after the bidding time period
ends, and if they disagree with the final results shown on the Observation Page they must report them to the Auction
Administrator within 15 minutes after the bidding time period ends. Regardless of the final results reported by
SpeerAuction, Bonds are definitively awarded to the winning bidder only upon official award by the City. If, for any
reason, the City fails to: (i) award Bonds to the winner reported by SpeerAuction, or (ii) deliver Bonds to winning bidder
at settlement, neither the City, Speer Financial, Inc., nor the Auction Administrator will be liable for damages.
The City reserves the right to reject all proposals, to reject any bid proposal not conforming to this Official Notice of Sale, and to waive any
irregularity or informality with respect to any proposal. Additionally, the City reserves the right to modify or amend this Official Notice of Sale; however,
any such modification or amendment shall not be made less than twenty-four (24) hours prior to the date and time for receipt of bids on the Bonds and any
such modification or amendment will be announced on the Amendments Page of the SpeerAuction webpage and through Thompson Municipal News.
The Bonds will be in fully registered form in the denominations of $5,000 and integral multiples thereof in the name of Cede & Co. as nominee
of The Depository Trust Company (“DTC”), New York, New York, to which principal and interest payments on the Bonds will be paid. Individual
purchases will be in book-entry only form. Interest on each Bond shall be paid by check or draft of the Bond Registrar to the person in whose name such
bond is registered at the close of business on the first day of the month in which an interest payment date occurs. The principal of the Bonds shall be
payable in lawful money of the United States of America at the principal corporate trust office of the Bond Registrar (as hereinafter defined) in Chicago,
Illinois. Semiannual interest is due June 15 and December 15 of each year commencing December 15, 2017, and is payable by
______________________________, Chicago, Illinois (the “Bond Registrar”). The Bonds are dated as of the date of delivery (expected to be on or about
June 5, 2017).
MATURITIES* – DECEMBER 15
$505,000 ................. 2023 $575,000 .................. 2028 $685,000 .................. 2033
515,000 ................. 2024 595,000 .................. 2029 715,000 .................. 2034
530,000 ................. 2025 615,000 .................. 2030 740,000 .................. 2035
545,000 ................. 2026 640,000 .................. 2031 770,000 .................. 2036
560,000 ................. 2027 660,000 .................. 2032 800,000 .................. 2037
Any consecutive maturities may be aggregated into term bonds at the option of the bidder,
in which case the mandatory redemption provisions shall be on the same schedule as above.
The Bonds maturing on or after December 15, 2026, are callable at the option of the City in whole or in part on any date on or after December
15, 2025, at a price of par and accrued interest. If less than all the Bonds are called, they shall be redeemed in such principal amounts and from such
maturities as determined by the City and within any maturity by lot.
All interest rates must be in multiples of one-eighth or one one-hundredth of one percent (1/8 or 1/100 of 1%), and not more than one rate for a
single maturity shall be specified. The rates bid shall be in non-descending order. The differential between the highest rate bid and the lowest rate bid
shall not exceed six percent (6%). All bids must be for all of the Bonds, and must be for not less than $9,374,400.
*Subject to change.
87
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
Official Notice of Sale, Page 3 of 4
*Subject to change.
Award of the Bonds: The Bonds will be awarded on the basis of true interest cost, determined in the following manner. True interest cost shall
be computed by determining the annual interest rate (compounded semi-annually) necessary to discount the debt service payments on the Bonds from the
payment dates thereof to the dated date and to the bid price. For the purpose of calculating true interest cost, the Bonds shall be deemed to become due in
the principal amounts and at the times set forth in the table of maturities set forth above. In the event two or more qualifying bids produce the identical
lowest true interest cost, the winning bid shall be the bid that was submitted first in time on the SpeerAuction webpage.
The Bonds will be awarded to the bidder complying with the terms of this Official Notice of Sale whose bid produces the lowest true interest
cost rate to the City as determined by the City’s Financial Advisor, which determination shall be conclusive and binding on all bidders; provided, that the
City reserves the right to reject all bids or any non-conforming bid and reserves the right to waive any informality in any bid. Bidders should verify the
accuracy of their final bids and compare them to the winning bids reported on the SpeerAuction Observation Page immediately after the bidding.
The premium or discount, if any, is subject to pro rata adjustment if the maturity amounts of the Bonds are changed, allowing the same
dollar amount of profit per $1,000 bond as submitted on the Official Bid Form.
The true interest cost of each bid will be computed by SpeerAuction and reported on the Observation Page of the SpeerAuction webpage
immediately following the date and time for receipt of bids. These true interest costs are subject to verification by the City’s Financial Advisor, will be
posted for information purposes only and will not signify an actual award of any bid or an official declaration of the winning bid. The City or its Financial
Advisor will notify the bidder to whom the Bonds will be awarded, if and when such award is made.
The winning bidder will be required to make the standard filings and maintain the appropriate records routinely required pursuant to MSRB
Rules G-8, G-11 and G-32. The winning bidder will be required to pay the standard MSRB charge for Bonds purchased. In addition, the winning bidder
who is a member of the Securities Industry and Financial Markets Association (“SIFMA”) will be required to pay SIFMA’s standard charge per bond.
The winning bidder is required to wire transfer from a solvent bank or trust company to the City’s good faith bank the amount of TWO
PERCENT OF PAR (the “Deposit”) WITHIN TWO HOURS after the bid opening time as evidence of the good faith of the bidder. Alternatively, a
bidder may submit its Deposit upon or prior to the submission of its bid in the form of a certified or cashier’s check on, or a wire transfer from, a solvent
bank or trust company for TWO PERCENT OF PAR payable to the City. The City reserves the right to award the Bonds to a winning bidder whose
wire transfer is initiated but not received within such two hour time period provided that such winning bidder’s federal wire reference number has been
received. In the event the Deposit is not received as provided above, the City may award the Bonds to the bidder submitting the next best bid provided
such bidder agrees to such award.
The Deposit of the successful bidder will be retained by the City pending delivery of the Bonds and all others will be promptly returned. Should
the successful bidder fail to take up and pay for the Bonds when tendered in accordance with this Notice of Sale and said bid, said Deposit shall be retained
as full and liquidated damages to the City caused by failure of the bidder to carry out the offer of purchase. Such Deposit will otherwise be applied on the
purchase price upon delivery of the Bonds. No interest on the Deposit will accrue to the purchaser.
If a wire transfer is used for the Deposit, it must be sent according to the following wire instructions:
Amalgamated Bank of Chicago
Corporate Trust
30 N. LaSalle Street, 38th Floor
Chicago, IL 60602
ABA # 071003405
Credit To: 3281 Speer Bidding Escrow
RE: City of Lake Forest, Lake County, Illinois
bid for the $9,450,000* General Obligation Bonds, Series 2017
Contemporaneously with such wire transfer, the bidder shall send an email to biddingescrow@aboc.com with the following information: (1)
indication that a wire transfer has been made, (2) the amount of the wire transfer, (3) the issue to which it applies, and (4) the return wire instructions if
such bidder is not awarded the Bonds. The City and any bidder who chooses to wire the Deposit hereby agree irrevocably that Speer Financial, Inc.
(“Speer”) shall be the escrow holder of the Deposit wired to such account subject only to these conditions and duties: (i) if the bid is not accepted, Speer
shall, at its expense, promptly return the Deposit amount to the unsuccessful bidder; (ii) if the bid is accepted, the Deposit shall be forwarded to the City;
(iii) Speer shall bear all costs of maintaining the escrow account and returning the funds to the bidder; (iv) Speer shall not be an insurer of the Deposit
amount and shall have no liability except if it willfully fails to perform, or recklessly disregards, its duties specified herein; and (v) income earned on the
Deposit, if any, shall be retained by Speer.
If a Financial Surety Bond is used for the Deposit, it must be from an insurance company licensed to issue such a bond in the State of Illinois
and such bond must be submitted to Speer prior to the opening of the bids. The Financial Surety Bond must identify each bidder whose deposit is
guaranteed by such Financial Surety Bond. If the Bonds are awarded to a bidder using a Financial Surety Bond, then that purchaser is required to submit
its Deposit to the City in the form of a certified or cashier’s check or wire transfer as instructed by Speer, or the City not later than 3:00 P.M. on the next
business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit
requirement.
*Subject to change.
88
City of Lake Forest, Lake County, Illinois
$9,450,000* General Obligation Bonds, Series 2017
Official Notice of Sale, Page 4 of 4
*Subject to change.
The City covenants and agrees to enter into a written agreement or contract, constituting an undertaking (the “Undertaking”) to provide ongoing
disclosure about the City for the benefit of the beneficial owners of the Bonds on or before the date of delivery of the Bonds as required under Section
(b)(5) of Rule 15c2-12 (the “Rule”) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934. The Undertaking
shall be as described in the Official Statement, with such changes as may be agreed in writing by the Underwriter.
The Underwriter’s obligation to purchase the Bonds shall be conditioned upon the City delivering the Undertaking on or before the date of
delivery of the Bonds.
The winning bidder shall provide a certificate, in form as drafted by or acceptable to Bond Counsel, to evidence the issue price of each maturity
of the Bonds, the form of which certificate is available upon request.
By submitting a bid, any bidder makes the representation that it understands Bond Counsel represents the City in the Bond transaction and, if
such bidder has retained Bond Counsel in an unrelated matter, such bidder represents that the signatory to the bid is duly authorized to, and does consent to
and waive for and on behalf of such bidder any conflict of interest of Bond Counsel arising from any adverse position to the City in this matter; such
consent and waiver shall supersede any formalities otherwise required in any separate understandings, guidelines or contractual arrangements between the
bidder and Bond Counsel.
The Bonds will be delivered to the successful purchaser against full payment in immediately available funds as soon as they can be prepared and
executed, which is expected to be on or about June 5, 2017. Should delivery be delayed beyond sixty (60) days from the date of sale for any reason
beyond the control of the City except failure of performance by the purchaser, the City may cancel the award or the purchaser may withdraw the good
faith deposit and thereafter the purchaser's interest in and liability for the Bonds will cease.
The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts, and interest
rates of the Bonds, and any other information required by law or deemed appropriate by the City, shall constitute a “Final Official Statement” of the City
with respect to the Bonds, as that term is defined in the Rule. Any such addendum or addenda shall, on and after the date thereof, be fully incorporated
herein and made a part hereof by reference. Alternatively, such final terms of the Bonds and other information may be included in a separate document
entitled “Final Official Statement” rather than through supplementing the Official Statement by an addendum or addenda. By awarding the Bonds to any
underwriter or underwriting syndicate, the City agrees that, no more than seven (7) business days after the date of such award, it shall provide, without
cost to the senior managing underwriter of the syndicate to which the Bonds are awarded, up to 100 copies of the Final Official Statement to permit each
“Participating Underwriter” (as that term is defined in the Rule) to comply with the provisions of such Rule. The City shall treat the senior managing
underwriter of the syndicate to which the Bonds are awarded as its designated agent for purposes of distributing copies of the Final Official Statement to
each Participating Underwriter. Any underwriter executing and delivering an Official Bid Form with respect to the Bonds agrees thereby that if its bid is
accepted by the City it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by
each such Participating Underwriter of the Final Official Statement.
By submission of its bid, the senior managing underwriter of the successful bidder agrees to supply all necessary pricing information and any
Participating Underwriter identification necessary to complete the Official Statement within 24 hours after award of the Bonds. Additional copies of the
Final Official Statement may be obtained by Participating Underwriters from the printer at cost.
The City will, at its expense, deliver the Bonds to the purchaser in New York, New York, through the facilities of DTC and will pay for the
bond attorney’s opinion. At the time of closing, the City will also furnish to the purchaser the following documents, each dated as of the date of delivery
of the Bonds: (1) the unqualified opinion of Chapman and Cutler LLP, Chicago, Illinois, stating that the Bonds are lawful and enforceable obligations of
the City in accordance with their terms; (2) the opinion of said attorneys that the interest on the Bonds is exempt from federal income taxes as and to the
extent set forth in the Official Statement for the Bonds; and (3) a no litigation certificate by the City.
The City intends to designate the Bonds as “qualified tax-exempt obligations” pursuant to the small issuer exception provided by Section
265(b)(3) of the Internal Revenue Code of 1986, as amended.
The City has authorized the printing and distribution of an Official Statement containing pertinent information relative to the City and the Bonds.
Copies of such Official Statement or additional information may be obtained from Ms. Elizabeth Holleb, Director of Finance, City of Lake Forest, 800
North Field Drive, Lake Forest, Illinois 60045; telephone (847) 810-3612 or an electronic copy of this Official Statement is available from the
www.speerfinancial.com web site under “Debt Auction Center/Official Statements Sales Calendar/Competitive” from the Independent Public Finance
Consultants to the City, Speer Financial, Inc., One North LaSalle Street, Suite 4100, Chicago, Illinois 60602, telephone (312) 346-3700.
/s/ ROBERT T.E. LANSING /s/ ROBERT R. KIELY, JR.
Mayor City Manager
CITY OF LAKE FOREST CITY OF LAKE FOREST
Lake County, Illinois Lake County, Illinois
89
ORDINANCE NO. 2017-__
AN ORDINANCE providing for the issuance of $9,450,000 General
Obligation Bonds, Series 2017, of the City of Lake Forest, Lake
County, Illinois, for the purpose of financing certain capital
improvements to said City’s water treatment plant, providing for
the levy and collection of a direct annual tax sufficient to pay the
principal and interest on said bonds, and authorizing the sale of
said bonds to ___________________.
WHEREAS, the City of Lake Forest, Lake County, Illinois (the “City”), has elected
pursuant to the provisions of the 1970 Constitution of the State of Illinois and particularly
Article VII, Section 6(a) thereof, to become a home rule unit and as such may exercise any
power or perform any function pertaining to its government and affairs, including, but not
limited to, the power to tax and to incur debt; and
WHEREAS, pursuant to the provisions of said Section 6, the City has the power to incur
debt payable from ad valorem property tax receipts or from any other lawful source and maturing
within 40 years from the time it is incurred without prior referendum approval; and
WHEREAS, the City Council of the City (the “Council”) has considered the needs of the
City and has determined and does hereby determine that it is necessary, desirable and in the best
interests of the City to borrow at this time the sum of $9,450,000 to finance certain capital
improvements to the City’s water treatment plant and pay expenses incidental thereto (the
“Project”); and
WHEREAS, it is in the best interest of the City to issue bonds of the City (the “Bonds”) in
the aggregate principal amount of $9,450,000 to evidence said borrowing and for the purpose of
paying costs of the Project; and
WHEREAS, the Bonds shall be payable from a direct annual ad valorem tax levied against
all taxable property in the City, without limitation as to rate or amount; and
90
WHEREAS, pursuant to Ordinance No. 2013-070, adopted by the Council on the 2nd day
of December, 2013 (“Ordinance No. 2013-070”), and notwithstanding the City’s home rule
status, the City has adopted a limit on the amount of property taxes it may levy on an annual
basis to provide for debt service payments on its outstanding general obligation bonds to an
amount not exceeding its 2004 debt service property tax levy (as adjusted for Consumer Price
Index increases) plus levies for capital improvements (the “City Debt Limit”); and
WHEREAS, the City has not levied any separate property taxes for capital improvements,
but has three outstanding series of general obligation bonds that are expected to be repaid from
sources other than general property taxes, namely, the City’s General Obligation Refunding
Bonds, Series 2011A, General Obligation Refunding Bonds, Series 2011B, and a portion of the
General Obligation Bonds, Series 2015; and
WHEREAS, the Bonds are also expected to be repaid from a source other than general
property taxes, the same being the net revenues of the City’s waterworks system (the “Net
Revenues”), and are therefore excluded from the restrictions of the City Debt Limit; and
WHEREAS, the County Clerk of The County of Lake, Illinois (the “County Clerk”), is
therefore authorized to extend and collect direct annual ad valorem taxes so levied for the
payment of the Bonds without limitation as to rate or amount;
NOW THEREFORE BE IT ORDAINED by the City Council of the City of Lake Forest, Lake
County, Illinois, in the exercise of its home rule powers, as follows:
Section 1. Incorporation of Preambles. The Council hereby finds that all of the
recitals contained in the preambles to this Ordinance are true, correct and complete and does
incorporate them into this Ordinance by this reference.
Section 2. Authorization. It is hereby found and determined that pursuant to the
provisions of the Illinois Municipal Code, as supplemented and amended, and the home rule
91
powers of the City under Section 6 of Article VII of the Illinois Constitution of 1970 (in the
event of conflict between the provisions of said code and home rule powers, the home rule
powers shall be deemed to supersede the provisions of said code) (the “Act”), the Council has
been authorized by law to borrow the sum of $9,450,000 upon the credit of the City and as
evidence of such indebtedness to issue bonds of the City in said amount, the proceeds of said
bonds to be used for the Project, and that it is necessary to borrow $9,450,000 of said authorized
sum and issue the Bonds in evidence thereof, and these findings and determinations, together
with those set forth in the preambles to this Ordinance, shall be deemed conclusive.
Section 3. Bond Details. There be borrowed by for and on behalf of the City the sum
of $9,450,000 for the purpose aforesaid, and that bonds of the City shall be issued in said amount
and shall be designated “General Obligation Bonds, Series 2017”. The Bonds shall be dated
June 5, 2017, and shall also bear the date of authentication, shall be in fully registered form, shall
be in denominations of $5,000 each or authorized integral multiples thereof (but no single Bond
shall represent installments of principal maturing on more than one date), and shall be
numbered 1 and upward. The Bonds shall become due and payable serially (subject to prior
redemption as hereinafter set forth) on December 15 of each of the years, in the amounts and
bearing interest per annum as follows:
92
YEAR OF
MATURITY
PRINCIPAL
AMOUNT ($)
RATE OF
INTEREST (%)
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
The Bonds shall bear interest from their date or from the most recent interest payment
date to which interest has been paid or duly provided for, until the principal amount of the Bonds
is paid, such interest (computed upon the basis of a 360-day year of twelve 30-day months) being
payable on June 15 and December 15 of each year, commencing on December 15, 2017.
Interest on each Bond shall be paid by check or draft of _______________________,
Chicago, Illinois, as bond registrar and paying agent (the “Bond Registrar”), payable upon
presentation thereof in lawful money of the United States of America, to the person in whose
name such Bond is registered at the close of business on the 1st day of the month of the interest
payment date. The principal of the Bonds shall be payable in lawful money of the United States
of America upon presentation thereof at the principal corporate trust office of the Bond
Registrar.
Section 4. Execution; Authentication. The Bonds shall be executed on behalf of the
City by the manual or facsimile signature of its Mayor and attested by the manual or facsimile
signature of its City Clerk, as they shall determine, and shall have impressed or imprinted
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thereon the corporate seal or facsimile thereof of the City. In case any such officer whose
signature shall appear on any Bond shall cease to be such officer before the delivery of such
Bond, such signature shall nevertheless be valid and sufficient for all purposes, the same as if
such officer had remained in office until delivery. All Bonds shall have thereon a certificate of
authentication, substantially in the form hereinafter set forth, duly executed by the Bond
Registrar as authenticating agent of the City and showing the date of authentication. No Bond
shall be valid or obligatory for any purpose or be entitled to any security or benefit under this
Ordinance unless and until such certificate of authentication shall have been duly executed by the
Bond Registrar by manual signature, and such certificate of authentication upon any such Bond
shall be conclusive evidence that such Bond has been authenticated and delivered under this
Ordinance.
Section 5. Registration of Bonds; Persons Treated as Owners. (a) General. The City
shall cause books (the “Bond Register”) for the registration and for the transfer of the Bonds as
provided in this Ordinance to be kept at the principal corporate trust office of the Bond Registrar,
which is hereby constituted and appointed the registrar of the City. The City is authorized to
prepare, and the Bond Registrar shall keep custody of, multiple Bond blanks executed by the
City for use in the transfer and exchange of Bonds.
Upon surrender for transfer of any Bond at the principal corporate trust office of the
Bond Registrar, duly endorsed by, or accompanied by a written instrument or instruments of
transfer in form satisfactory to the Bond Registrar and duly executed by, the registered owner or
his or her attorney duly authorized in writing, the City shall execute and the Bond Registrar shall
authenticate, date and deliver in the name of the transferee or transferees a new fully registered
Bond or Bonds of the same maturity of authorized denominations, for a like aggregate principal
amount. Any fully registered Bond or Bonds may be exchanged at said office of the Bond
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Registrar for a like aggregate principal amount of Bond or Bonds of the same maturity of other
authorized denominations. The execution by the City of any fully registered Bond shall
constitute full and due authorization of such Bond and the Bond Registrar shall thereby be
authorized to authenticate, date and deliver such Bond, provided, however, the principal amount
of outstanding Bonds of each maturity authenticated by the Bond Registrar shall not exceed the
authorized principal amount of Bonds for such maturity less previous retirements.
The Bond Registrar shall not be required to transfer or exchange any Bond during the
period beginning at the close of business on the 1st day of the month of any interest payment
date on such Bond and ending at the opening of business on such interest payment date, nor to
transfer or exchange any Bond after notice calling such Bond for redemption has been mailed,
nor during a period of fifteen (15) days next preceding mailing of a notice of redemption of any
Bonds.
The person in whose name any Bond shall be registered shall be deemed and regarded as
the absolute owner thereof for all purposes, and payment of the principal of or interest on any
Bond shall be made only to or upon the order of the registered owner thereof or his or her legal
representative. All such payments shall be valid and effectual to satisfy and discharge the
liability upon such Bond to the extent of the sum or sums so paid.
No service charge shall be made for any transfer or exchange of Bonds, but the City or
the Bond Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any transfer or exchange of Bonds,
except in the case of the issuance of a Bond or Bonds for the unredeemed portion of a Bond
surrendered for redemption.
(b) Global Book-Entry System. The Bonds shall be initially issued in the form of a
separate single fully registered Bond for each of the maturities of the Bonds determined as
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described in Section 3 hereof. Upon initial issuance, the ownership of each such Bond shall be
registered in the Bond Register in the name of Cede & Co., or any successor thereto (“Cede”), as
nominee of The Depository Trust Company, New York, New York, and its successors and
assigns (“DTC”). All of the outstanding Bonds shall be registered in the Bond Register in the
name of Cede, as nominee of DTC, except as hereinafter provided. Any officer of the City who
is a signatory on the Bonds is authorized to execute and deliver, on behalf of the City, such
letters to or agreements with DTC as shall be necessary to effectuate such book-entry system
(any such letter or agreement being referred to herein as the “Representation Letter”), which
Representation Letter may provide for the payment of principal of or interest on the Bonds by
wire transfer.
With respect to Bonds registered in the Bond Register in the name of Cede, as nominee
of DTC, the City and the Bond Registrar shall have no responsibility or obligation to any
broker-dealer, bank or other financial institution for which DTC holds Bonds from time to time
as securities depository (each such broker-dealer, bank or other financial institution being
referred to herein as a “DTC Participant”) or to any person on behalf of whom such a DTC
Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence,
the City and the Bond Registrar shall have no responsibility or obligation with respect to (i) the
accuracy of the records of DTC, Cede or any DTC Participant with respect to any ownership
interest in the Bonds, (ii) the delivery to any DTC Participant or any other person, other than a
registered owner of a Bond as shown in the Bond Register, of any notice with respect to the
Bonds, including any notice of redemption, or (iii) the payment to any DTC Participant or any
other person, other than a registered owner of a Bond as shown in the Bond Register, of any
amount with respect to the principal of or interest on the Bonds. The City and the Bond
Registrar may treat and consider the person in whose name each Bond is registered in the Bond
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Register as the holder and absolute owner of such Bond for the purpose of payment of principal
and interest with respect to such Bond, for the purpose of giving notices of redemption and other
matters with respect to such Bond, for the purpose of registering transfers with respect to such
Bond, and for all other purposes whatsoever. The Bond Registrar shall pay all principal of and
interest on the Bonds only to or upon the order of the respective registered owners of the Bonds,
as shown in the Bond Register, or their respective attorneys duly authorized in writing, and all
such payments shall be valid and effective to fully satisfy and discharge the City’s obligations
with respect to payment of the principal of and interest on the Bonds to the extent of the sum or
sums so paid. No person other than a registered owner of a Bond as shown in the Bond Register,
shall receive a Bond evidencing the obligation of the City to make payments of principal and
interest with respect to any Bond. Upon delivery by DTC to the Bond Registrar of written notice
to the effect that DTC has determined to substitute a new nominee in place of Cede, and subject
to the provisions in Section 3 hereof with respect to the payment of interest to the registered
owners of Bonds at the close of business on the 1st day of the month of the applicable interest
payment date, the name “Cede” in this Ordinance shall refer to such new nominee of DTC.
In the event that (i) the City determines that DTC is incapable of discharging its
responsibilities described herein and in the Representation Letter, (ii) the agreement among the
City, the Bond Registrar and DTC evidenced by the Representation Letter shall be terminated for
any reason or (iii) the City determines that it is in the best interests of the beneficial owners of
the Bonds that they be able to obtain certificated Bonds, the City shall notify DTC and DTC
Participants of the availability through DTC of certificated Bonds and the Bonds shall no longer
be restricted to being registered in the Bond Register in the name of Cede, as nominee of DTC.
At that time, the City may determine that the Bonds shall be registered in the name of and
deposited with such other depository operating a universal book-entry system, as may be
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acceptable to the City, or such depository’s agent or designee, and if the City does not select
such alternate universal book-entry system, then the Bonds may be registered in whatever name
or names registered owners of Bonds transferring or exchanging Bonds shall designate, in
accordance with the provisions of Section 5(a) hereof.
Notwithstanding any other provisions of this Ordinance to the contrary, so long as any
Bond is registered in the name of Cede, as nominee of DTC, all payments with respect to
principal of and interest on such Bond and all notices with respect to such Bond shall be made
and given, respectively, in the name provided in the Representation Letter.
Section 6. Redemption. The Bonds maturing on or after December 15, 2026, shall be
subject to redemption prior to maturity at the option of the City as a whole or in part in integral
multiples of $5,000 in any order of their maturity as determined by the City (less than all of the
Bonds of a single maturity to be selected by the Bond Registrar), on December 15, 2025, and on
any date thereafter, at the redemption price of par plus accrued interest to the redemption date.
The Bonds shall be redeemed only in the principal amount of $5,000 and integral
multiples thereof. The City shall, at least forty-five (45) days prior to any optional redemption
date (unless a shorter time period shall be satisfactory to the Bond Registrar) notify the Bond
Registrar of such redemption date and of the principal amount and maturity or maturities of
Bonds to be redeemed. For purposes of any redemption of less than all of the outstanding Bonds
of a single maturity, the particular Bonds or portions of Bonds to be redeemed shall be selected
by lot by the Bond Registrar from the Bonds of such maturity by such method of lottery as the
Bond Registrar shall deem fair and appropriate; provided that such lottery shall provide for the
selection for redemption of Bonds or portions thereof so that any $5,000 Bond or $5,000 portion
of a Bond shall be as likely to be called for redemption as any other such $5,000 Bond or $5,000
portion. The Bond Registrar shall make such selection upon the earlier of the irrevocable deposit
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of funds with an escrow agent sufficient to pay the redemption price of the Bonds to be
redeemed or the time of the giving of official notice of redemption.
The Bond Registrar shall promptly notify the City in writing of the Bonds or portions of
Bonds selected for redemption and, in the case of any Bond selected for partial redemption, the
principal amount thereof to be redeemed.
Section 7. Redemption Procedure. Unless waived by any holder of Bonds to be
redeemed, notice of the call for any such redemption shall be given by the Bond Registrar on
behalf of the City by mailing the redemption notice by first class mail at least thirty (30) days
and not more than sixty (60) days prior to the date fixed for redemption to the registered owner
of the Bond or Bonds to be redeemed at the address shown on the Bond Register or at such other
address as is furnished in writing by such registered owner to the Bond Registrar.
All notices of redemption shall state:
(1) the redemption date,
(2) the redemption price,
(3) if less than all outstanding Bonds are to be redeemed, the identification (and,
in the case of partial redemption, the respective principal amounts) of the Bonds to be
redeemed,
(4) that on the redemption date the redemption price will become due and
payable upon each such Bond or portion thereof called for redemption, and that interest
thereon shall cease to accrue from and after said date,
(5) the place where such Bonds are to be surrendered for payment of the
redemption price, which place of payment shall be the principal corporate trust office of
the Bond Registrar, and
(6) such other information then required by custom, practice or industry
standard.
Unless moneys sufficient to pay the redemption price of the Bonds to be redeemed at the
option of the City shall have been received by the Bond Registrar prior to the giving of such
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notice of redemption, such notice may, at the option of the City, state that said redemption shall
be conditional upon the receipt of such moneys by the Bond Registrar on or prior to the date
fixed for redemption. If such moneys are not received, such notice shall be of no force and
effect, the City shall not redeem such Bonds, and the Bond Registrar shall give notice, in the
same manner in which the notice of redemption shall have been given, that such moneys were
not so received and that such Bonds will not be redeemed. Otherwise, prior to any redemption
date, the City shall deposit with the Bond Registrar an amount of money sufficient to pay the
redemption price of all the Bonds or portions of Bonds which are to be redeemed on that date.
Subject to the provisions for a conditional redemption described above, notice of
redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed
shall, on the redemption date, become due and payable at the redemption price therein specified,
and from and after such date (unless the City shall default in the payment of the redemption
price) such Bonds or portions of Bonds shall cease to bear interest. Upon surrender of such
Bonds for redemption in accordance with said notice, such Bonds shall be paid by the Bond
Registrar at the redemption price. Installments of interest due on or prior to the redemption date
shall be payable as herein provided for payment of interest. Upon surrender for any partial
redemption of any Bond, there shall be prepared for the registered holder a new Bond or Bonds
of the same maturity in the amount of the unpaid principal.
If any Bond or portion of Bond called for redemption shall not be so paid upon surrender
thereof for redemption, the principal shall, until paid, bear interest from the redemption date at
the rate borne by the Bond or portion of Bond so called for redemption. All Bonds which have
been redeemed shall be cancelled and destroyed by the Bond Registrar and shall not be reissued.
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Section 8. Form of Bond. The Bonds shall be in substantially the following form;
provided, however, that if the text of the Bond is to be printed in its entirety on the front side of
the Bond, then paragraph [2] and the legend, “See Reverse Side for Additional Provisions”, shall
be omitted and paragraphs [6] through [11] shall be inserted immediately after paragraph [1]:
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[FORM OF BOND - FRONT SIDE]
REGISTERED REGISTERED
NO. ______ $_________
UNITED STATES OF AMERICA
STATE OF ILLINOIS
COUNTY OF LAKE
CITY OF LAKE FOREST
GENERAL OBLIGATION BOND, SERIES 2017
See Reverse Side for
Additional Provisions
Interest Maturity Dated
Rate: ____% Date: December 15, 20__ Date: June 5, 2017 CUSIP: 509696 ___
Registered Owner:
Principal Amount:
[1] KNOW ALL PERSONS BY THESE PRESENTS that the City of Lake Forest, Lake County,
Illinois, a municipality, home rule unit, and political subdivision of the State of Illinois (the
“City”), hereby acknowledges itself to owe and for value received promises to pay to the
Registered Owner identified above, or registered assigns as hereinafter provided, on the Maturity
Date identified above, the Principal Amount identified above and to pay interest (computed on
the basis of a 360-day year of twelve 30-day months) on such Principal Amount from the later of
the Dated Date of this Bond identified above or from the most recent interest payment date to
which interest has been paid or duly provided for, at the Interest Rate per annum identified
above, such interest to be payable on June 15 and December 15 of each year, commencing
December 15, 2017, until said Principal Amount is paid or duly provided for. The principal of
this Bond is payable in lawful money of the United States of America upon presentation hereof
at the principal corporate trust office of _______________________, Chicago, Illinois, as bond
registrar and paying agent (the “Bond Registrar”). Payment of interest shall be made to the
Registered Owner hereof as shown on the registration books of the City maintained by the Bond
Registrar, at the close of business on the 1st day of the month of the interest payment date.
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Interest shall be paid by check or draft of the Bond Registrar, payable upon presentation in
lawful money of the United States of America, mailed to the address of such Registered Owner
as it appears on such registration books, or at such other address furnished in writing by such
Registered Owner to the Bond Registrar. For the prompt payment of this Bond both principal
and interest at maturity, the full faith, credit and resources of the City are hereby irrevocably
pledged.
[2] Reference is hereby made to the further provisions of this Bond set forth on the
reverse hereof, and such further provisions shall for all purposes have the same effect as if set
forth at this place.
[3] It is hereby certified and recited that all conditions, acts and things required by the
Constitution and Laws of the State of Illinois to exist or to be done precedent to and in the
issuance of this Bond, including the hereinafter defined Act, have existed and have been properly
done, happened and been performed in regular and due form and time as required by law; that
the indebtedness of the City, represented by the Bonds, and including all other indebtedness of
the City, howsoever evidenced or incurred, does not exceed any constitutional or statutory or
other lawful limitation; and that provision has been made for the collection of a direct annual tax,
in addition to all other taxes, on all of the taxable property in the City sufficient to pay the
interest hereon as the same falls due and also to pay and discharge the principal hereof at
maturity.
[4] This Bond shall not be valid or become obligatory for any purpose until the
certificate of authentication hereon shall have been signed by the Bond Registrar.
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[5] IN WITNESS WHEREOF, the City of Lake Forest, Lake County, Illinois, by its City
Council, has caused this Bond to be executed by the manual or duly authorized facsimile
signature of its Mayor and attested by the manual or duly authorized facsimile signature of its
City Clerk and its corporate seal or a facsimile thereof to be impressed or reproduced hereon, all
as appearing hereon and as of the Dated Date identified above.
SPECIMEN
Mayor, Lake Forest,
Lake County, Illinois
ATTEST:
SPECIMEN
City Clerk, Lake Forest
Lake County, Illinois
[SEAL]
Date of Authentication: ___________, 20__
CERTIFICATE Bond Registrar and Paying Agent:
OF _______________________,
AUTHENTICATION Chicago, Illinois
This Bond is one of the Bonds described
in the within mentioned ordinance and is
one of the General Obligation Bonds,
Series 2017, of the City of Lake Forest,
Lake County, Illinois.
_______________________, as Bond
Registrar
By SPECIMEN
Authorized Officer
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[FORM OF BOND - REVERSE SIDE]
CITY OF LAKE FOREST, LAKE COUNTY, ILLINOIS
GENERAL OBLIGATION BOND, SERIES 2017
[6] This Bond is one of a series of bonds (the “Bonds”) issued by the City for the
purpose of financing capital improvements in the City including, but not limited to, infrastructure
improvements to the City’s water treatment plant, and paying expenses incidental thereto, all as
described and defined in the Ordinance of the City, passed by the City Council on the 15th day
of May, 2017, authorizing the Bonds (the “Ordinance”), pursuant to and in all respects in
compliance with the applicable provisions of the Illinois Municipal Code, as amended; as further
supplemented and, where necessary, superseded, by the powers of the City as a home rule unit
under the provisions of Section 6 of Article VII of the Illinois Constitution of 1970 (collectively,
such Illinois Municipal Code and constitutional home rule powers, being the “Act”), and with
the Ordinance, which has been duly approved by the Mayor, and published, in all respects as by
law required.
[7] Bonds of the issue of which this Bond is one maturing on and after December 15,
2026, are subject to redemption prior to maturity at the option of the City as a whole, or in part in
integral multiples of $5,000 in any order of their maturity as determined by the City (less than all
the Bonds of a single maturity to be selected by lot by the Bond Registrar), on December 15,
2025, and on any date thereafter, at the redemption price of par plus accrued interest to the
redemption date.
[8] Notice of any such redemption shall be sent by first class mail not less than thirty
(30) days nor more than sixty (60) days prior to the date fixed for redemption to the registered
owner of each Bond to be redeemed at the address shown on the registration books of the City
maintained by the Bond Registrar or at such other address as is furnished in writing by such
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registered owner to the Bond Registrar. When so called for redemption, this Bond will cease to
bear interest on the specified redemption date, provided funds for redemption are on deposit at
the place of payment at that time, and shall not be deemed to be outstanding.
[9] This Bond is transferable by the Registered Owner hereof in person or by his or her
attorney duly authorized in writing at the principal corporate trust office of the Bond Registrar in
Chicago, Illinois, but only in the manner, subject to the limitations and upon payment of the
charges provided in the Ordinance, and upon surrender and cancellation of this Bond. Upon
such transfer a new Bond or Bonds of authorized denominations of the same maturity and for the
same aggregate principal amount will be issued to the transferee in exchange therefor.
[10] The Bonds are issued in fully registered form in the denomination of $5,000 each or
authorized integral multiples thereof. This Bond may be exchanged at the principal corporate
trust office of the Bond Registrar for a like aggregate principal amount of Bonds of the same
maturity of other authorized denominations, upon the terms set forth in the Ordinance. The
Bond Registrar shall not be required to transfer or exchange any Bond during the period
beginning at the close of business on the 1st day of the month of any interest payment date on
such Bond and ending at the opening of business on such interest payment date, nor to transfer or
exchange any Bond after notice calling such Bond for redemption has been mailed, nor during a
period of fifteen (15) days next preceding mailing of a notice of redemption of any Bonds.
[11] The City and the Bond Registrar may deem and treat the Registered Owner hereof
as the absolute owner hereof for the purpose of receiving payment of or on account of principal
hereof and interest due hereon and for all other purposes, and neither the City nor the Bond
Registrar shall be affected by any notice to the contrary.
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ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assign, and transfers unto ____________________
Here insert Social Security Number,
Employer Identification Number or
other Identifying Number
______________________________________________________________________________
______________________________________________________________________________
(Name and Address of Assignee)
the within Bond and does hereby irrevocably constitute and appoint _______________________
______________________________________________________________________________
as attorney to transfer the said Bond on the books kept for registration thereof with full power of
substitution in the premises.
Dated: ________________________ ____________________________
Signature guaranteed: _____________________________
NOTICE: The signature to this transfer and assignment must correspond with the name of the
Registered Owner as it appears upon the face of the within Bond in every particular,
without alteration or enlargement or any change whatever.
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Section 9. Sale of Bonds. The Bonds shall be executed as in this Ordinance provided
as soon after the passage hereof as may be, shall be deposited with the City Treasurer, and shall
be by the City Treasurer delivered to _______________________, ____________,
___________, the purchaser thereof (the “Purchaser”), upon receipt of the purchase price
therefor, the same being $___________________; the contract for the sale of the Bonds (the
“Purchase Contract”) heretofore entered into is in all respects ratified, approved and confirmed,
and the officers of the City designated in the Purchase Contract are authorized and directed to
execute the Purchase Contract on behalf of the City, it being hereby declared that, to the best of
the knowledge and belief of the Council, after due inquiry, no person holding any office of the
City, either by election or appointment, is in any manner financially interested, either directly in
his or her own name or indirectly in the name of any other person, association, trust or
corporation, in the Purchase Contract.
The use by the Purchaser of any Preliminary Official Statement and any final Official
Statement relating to the Bonds and before the Council at the time of the adoption hereof (the
“Official Statement”) is hereby ratified, approved and authorized; the execution and delivery of
the Official Statement is hereby authorized; and the officers of the Council are hereby authorized
to take any action as may be required on the part of the City to consummate the transactions
contemplated by said contract for the purchase of the Bonds, this Ordinance, said Preliminary
Official Statement, the Official Statement and the Bonds.
Section 10. Tax Levy; Abatement. For the purpose of providing funds required to pay
the interest on the Bonds promptly when and as the same falls due, and to pay and discharge the
principal thereof at maturity, there is hereby levied upon all of the taxable property within the
City, in the years for which any of the Bonds are outstanding, a direct annual tax sufficient for
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that purpose; and there is hereby levied on all of the taxable property in the City, in addition to
all other taxes, the following direct annual tax (the “Pledged Taxes”), to-wit:
FOR THE YEAR A TAX SUFFICIENT TO PRODUCE THE SUM OF:
2017 for interest up to and including December 15,
2018
2018 for interest
2019 for interest
2020 for interest
2021 for interest
2022 for interest and principal
2023 for interest and principal
2024 for interest and principal
2025 for interest and principal
2026 for interest and principal
2027 for interest and principal
2028 for interest and principal
2029 for interest and principal
2030 for interest and principal
2031 for interest and principal
2032 for interest and principal
2033 for interest and principal
2034 for interest and principal
2035 for interest and principal
2036 for interest and principal
Principal or interest maturing at any time when there are not sufficient funds on hand
from the foregoing tax levy to pay the same shall be paid from the general funds of the City, and
the fund from which such payment was made shall be reimbursed out of the taxes hereby levied
when the same shall be collected. There are no Pledged Taxes being levied to pay interest on the
Bonds through December 15, 2017; such interest shall be paid from the Net Revenues or other
lawfully available moneys of the City.
The City covenants and agrees with the purchasers and the holders of the Bonds that so
long as any of the Bonds remain outstanding, the City will take no action or fail to take any
action which in any way would adversely affect the ability of the City to levy and collect the
foregoing tax levy and the City and its officers will comply with all present and future applicable
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laws in order to assure that the foregoing taxes will be levied, extended and collected as provided
herein and deposited in the fund established to pay the principal of and interest on the Bonds.
In the event that funds from any other lawful source are made available for the purpose of
paying any principal of or interest on the Bonds so as to enable the abatement of the taxes levied
herein for the payment of same, the Council shall, by proper proceedings, direct the transfer of
such funds to the hereinafter defined Bond Fund, and shall then further direct the abatement of
the taxes by the amount so deposited. The City covenants and agrees that it will not direct the
abatement of taxes until money has been deposited into the Bond Fund in the amount of such
abatement. A certified copy or other notification of any such proceedings abating taxes may then
be filed with the County Clerk in a timely manner to effect such abatement.
Section 11. Filing with County Clerk. Forthwith upon the passage of this Ordinance,
the City Clerk of the City is hereby directed to file a certified copy of this Ordinance with the
County Clerk; and the County Clerk shall in and for each of the years 2017 to 2036, inclusive,
ascertain the rate necessary to produce the tax herein levied; and the County Clerk shall extend
the same for collection on the tax books in connection with other taxes levied in said years in and
by the City for general corporate purposes of the City; and, subject to abatement as stated
hereinabove, in said years such annual tax shall be levied and collected by and for and on behalf
of the City in like manner as taxes for general corporate purposes for said years are levied and
collected, and in addition to and in excess of all other taxes, and when collected, the taxes hereby
levied shall be placed to the credit of a special fund to be designated “Bond and Interest Fund
Account of 2017” (the “Bond Fund”), which taxes are hereby irrevocably pledged to and shall
be used only for the purpose of paying the principal of and interest on the Bonds.
Section 12. Use of Bond Proceeds. Accrued interest, if any, received on the delivery of
the Bonds is hereby appropriated for the purpose of paying first interest due on the Bonds and is
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hereby ordered deposited into the Bond Fund. The principal proceeds of the Bonds and any
premium received from the sale of the Bonds are hereby appropriated to pay the costs of issuance
of the Bonds and for the purpose of paying the cost of the Project, and that portion thereof not
needed to pay such costs of issuance is hereby ordered deposited into the Capital Improvement
Account of the City (the “Project Fund”). At the time of the issuance of the Bonds, the costs of
issuance of the Bonds may be paid by the Purchaser on behalf of the City from the proceeds of
the Bonds.
Section 13. Non-Arbitrage and Tax-Exemption. The City hereby covenants that it will
not take any action, omit to take any action or permit the taking or omission of any action within
its control (including, without limitation, making or permitting any use of the proceeds of the
Bonds) if taking, permitting or omitting to take such action would cause any of the Bonds to be
an arbitrage bond or a private activity bond within the meaning of the Internal Revenue Code of
1986, as amended (the “Code”), or would otherwise cause the interest on the Bonds to be
included in the gross income of the recipients thereof for federal income tax purposes. The City
acknowledges that, in the event of an examination by the Internal Revenue Service (the “IRS”)
of the exemption from Federal income taxation for interest paid on the Bonds, under present
rules, the City may be treated as a “taxpayer” in such examination and agrees that it will respond
in a commercially reasonable manner to any inquiries from the IRS in connection with such an
examination.
The City also agrees and covenants with the purchasers and holders of the Bonds from
time to time outstanding that, to the extent possible under Illinois law, it will comply with
whatever federal tax law is adopted in the future which applies to the Bonds and affects the tax-
exempt status of the Bonds.
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The Council hereby authorizes the officials of the City responsible for issuing the Bonds,
the same being the Mayor and City Clerk, to make such further covenants and certifications
regarding the specific use of the proceeds of the Bonds as approved by the Council and as may
be necessary to assure that the use thereof will not cause the Bonds to be arbitrage bonds and to
assure that the interest on the Bonds will be exempt from federal income taxation. In connection
therewith, the City and the Council further agree: (a) through their officers, to make such further
specific covenants, representations as shall be truthful, and assurances as may be necessary or
advisable; (b) to consult with counsel approving the Bonds and to comply with such advice as
may be given; (c) to pay to the United States, as necessary, such sums of money representing
required rebates of excess arbitrage profits relating to the Bonds; (d) to file such forms,
statements, and supporting documents as may be required and in a timely manner; and (e) if
deemed necessary or advisable by their officers, to employ and pay fiscal agents, financial
advisors, attorneys, and other persons to assist the City in such compliance.
Section 14. Designation of Issue. The City hereby designates each of the Bonds as a
“qualified tax-exempt obligation” for the purposes and within the meaning of Section 265(b)(3)
of the Code.
Section 15. List of Bondholders. The Bond Registrar shall maintain a list of the names
and addresses of the holders of all Bonds and upon any transfer shall add the name and address
of the new Bondholder and eliminate the name and address of the transferor Bondholder.
Section 16. Duties of Bond Registrar. If requested by the Bond Registrar, the Mayor
and City Clerk of the City are authorized to execute the Bond Registrar’s standard form of
agreement between the City and the Bond Registrar with respect to the obligations and duties of
the Bond Registrar hereunder which may include the following:
(a) to act as bond registrar, authenticating agent, paying agent and transfer agent
as provided herein;
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(b) to maintain a list of Bondholders as set forth herein and to furnish such list
to the City upon request, but otherwise to keep such list confidential;
(c) to give notice of redemption of the Bonds as provided herein;
(d) to cancel and/or destroy Bonds which have been paid at maturity or
submitted for exchange or transfer;
(e) to furnish the City at least annually a certificate with respect to Bonds
cancelled and/or destroyed; and
(f) to furnish the City at least annually an audit confirmation of Bonds paid,
Bonds outstanding and payments made with respect to interest on the Bonds.
Section 17. Continuing Disclosure Undertaking. The Mayor or City Treasurer is
hereby authorized, empowered and directed to execute and deliver a Continuing Disclosure
Undertaking (the “Continuing Disclosure Undertaking”) in connection with the issuance of the
Bonds, with such provisions therein as he or she shall approve, his or her execution thereof to
constitute conclusive evidence of his or her approval of such provisions. When the Continuing
Disclosure Undertaking is executed and delivered on behalf of the City as herein provided, the
Continuing Disclosure Undertaking will be binding on the City and the officers, employees and
agents of the City, and the officers, employees and agents of the City are hereby authorized,
empowered and directed to do all such acts and things and to execute all such documents as may
be necessary to carry out and comply with the provisions of the Continuing Disclosure
Undertaking as executed. Notwithstanding any other provision of this Ordinance, the sole
remedies for failure to comply with the Continuing Disclosure Undertaking shall be the ability of
the beneficial owner of any Bond to seek mandamus or specific performance by court order, to
cause the City to comply with its obligations under the Continuing Disclosure Undertaking.
Section 18. Record-Keeping Policy and Post-Issuance Compliance Matters. On
August 3, 2015, the Council adopted a record-keeping policy (the “Policy”) in order to maintain
sufficient records to demonstrate compliance with its covenants and expectations to ensure the
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appropriate federal tax status for the debt obligations of the City, the interest on which is
excludable from “gross income” for federal income tax purposes or which enable the City or the
holder to receive federal tax benefits, including, but not limited to, qualified tax credit bonds and
other specified tax credit bonds. The Council and the City hereby reaffirm the Policy.
Section 19. Defeasance. Any Bond or Bonds which (a) are paid and cancelled,
(b) which have matured and for which sufficient sums been deposited with the Bond Registrar to
pay all principal and interest due thereon, or (c) for which sufficient (i) full faith and credit
obligations of the United States, the timely payment of which are guaranteed by the United
States Treasury, (ii) certificates of participation in a trust comprised solely of full faith and credit
obligations of the United States, or (iii) cash, have been deposited with the Bond Registrar or
similar institution to pay, taking into account investment earnings on such obligations, all
principal of and interest on such Bond or Bonds when due at maturity or as called for
redemption, pursuant to an irrevocable escrow or trust agreement, shall cease to have any lien on
or right to receive or be paid from the Pledged Taxes and shall no longer have the benefits of any
covenant for the registered owners of outstanding Bonds as set forth herein as such relates to lien
and security of the outstanding Bonds. All covenants relative to the tax-exempt status of the
Bonds; and payment, registration, transfer, and exchange; are expressly continued for all Bonds
whether outstanding Bonds or not.
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Section 20. Superseder and Effective Date. All ordinances, resolutions, and orders, or
parts thereof, in conflict herewith, are to the extent of such conflict hereby superseded, including
expressly Ordinance No. 2013-070 to the extent necessary for the Bonds to be payable from a
direct annual ad valorem tax levied against all taxable property in the City, without limitation as
to rate or amount; and this Ordinance shall be in full force and effect immediately upon its
passage and approval.
ADOPTED: May 15, 2017
AYES: _________________________________________________________
_________________________________________________________
NAYS: _________________________________________________________
ABSTENTION: _________________________________________________________
ABSENT: _________________________________________________________
Approved: May 15, 2017
_______________________________________
Mayor, City of Lake Forest,
Lake County, Illinois
ATTEST:
__________________________________
City Clerk, City of Lake Forest,
Lake County, Illinois
Recorded in the City Records on May 15, 2017.
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