CITY COUNCIL 2017/05/15 AgendaTHE CITY OF LAKE FOREST
CITY COUNCIL AGENDA
Monday, May 15, 2017 at 6:30 pm
City Hall Council Chambers
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
CALL TO ORDER AND ROLL CALL 6:30
PLEDGE OF ALLEGIANCE
REPORTS OF CITY OFFICERS
1. COMMENTS BY MAYOR
A. Promotion of Fire Lieutenant Cory Kazimour to Battalion Chief
B. Promotion of Firefighter/Paramedic Matthew Rausch to Lieutenant
C. Swear in Firefighter/Paramedic Jacob Rieper
D. 2017-2018 Board and Commission Appointments/Reappointments
GORTON COMMUNITY CENTER
NAME OF MEMBER APPOINT/REAPPOINT WARD
Nick Bothfeld Appoint 3
Bill Moskoff Appoint 1
BUILDING REVIEW BOARD
NAME OF MEMBER APPOINT/REAPPOINT WARD
Chris Bires Appoint 2
A copy of the Volunteer Profile Sheets can be found beginning on page 9.
COUNCIL ACTION: Approve the Mayors Appointments
1
Monday, May 15, 2017 City Council Agenda
E. Approval of a Resolution of Appreciation for Retiring Members of Boards and
Commissions as follows:
BOARD, COMMISSION OR COMMITTEE NAME OF MEMBER(S)
LIBRARY BOARD Elizabeth Grob
GORTON COMMUNITY CENTER James “Jed” Morris
A copy of the Resolution can be found on page 14.
COUNCIL ACTION: Approve the Resolution
F. Lake Forest Day Proclamation-
A copy of the Proclamation can be found on page 15.
G. Historic Preservation Month Proclamation
A copy of the Proclamation can be found on page 16.
2. COMMENTS BY CITY MANAGER
A. Update on the Condition of the South Beach Access Road
-Michael Thomas, Director of Public Works
B. Report on the Lake Forest College Home for Dinner Program
-Mary Duckworth, Associate Director of Residence Life for Learning and
Development Lake Forest College
C. Community Spot Light
-Elawa Farm-100th Anniversary Celebration and Upcoming Events
-Dianne FitzSimons, President Elawa Farm Foundation
1. Discussion of a Special Event Permit Application for an Elawa Farm
Fundraiser and Centennial Celebration Event.
STAFF CONTACT: Mike Strong, Assistant to City Manager (810-3680)
The Elawa Farm Foundation has submitted a Special Event Permit Application to host a
fundraising event on Saturday, September 9, 2017, to celebrate the 100th Anniversary of Elawa
Farm.
Attached beginning on page 18, is background information and a copy of the special event
application pertaining to this request.
COUNCIL ACTION: For discussion only.
2
Monday, May 15, 2017 City Council Agenda
D. Pre FY2019 Fiscal Planning and Presentation Schedule
3. COMMENTS BY COUNCIL MEMBERS
FINANCE COMMITTEE
1. Consideration of an Ordinance providing for the Issuance of Approximately
$9,450,000 General Obligation Bonds, Series 2017, for the purpose of financing
certain capital improvements to the 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 the purchaser thereof.
(Second Reading and Final Approval)
PRESENTED BY: Elizabeth Holleb, Finance Director (847-810-3612)
PURPOSE AND ACTION REQUESTED: Staff requests that City Council grant final approval of the
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 preliminary official statement (page 74) for the bond issue. Moody’s Investors
Service conducted a rating review on April 27 with Finance Director Elizabeth Holleb, and a
rating is expected to be issued on May 11.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
City Council 5/1/17 First reading of bond ordinance.
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
3
Monday, May 15, 2017 City Council Agenda
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: Grant final approval of the bond ordinance (page 248). 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 that will
include the successful bidder information and financial details.
LAKE FOREST MARKETING CAMPAIGN COMMITTEE
1. Campaign Update and Status Report
-Alderman Prue Beidler and Susan Banks, Communications Manager
BACKGROUND/DISCUSSION: The Marketing Campaign is preparing for a launch with a series
of website and social media promotions, films and videos, print advertising, events and
campaign visibility planned over the next three years. The City will be working with realtors,
schools and corporations by providing posters and other printed materials and interactive ad
templates where they can insert their own logos and distribute to clients, families and
employees. Local retailers and restaurants are also collaborating with the City to promote
shopping and dining with specials, discounts and printed materials.
The City is anticipating a budget of $35,000 per year to cover print advertising costs
through Fiscal Year 2020.
The “Welcome Home” campaign will:
• Increase interest in the community
• Surprise and delight
• Build awareness
• Reach targeted audiences (current and prospective residents, visitors, students,
businesses, investors, younger families)
• Energize retail, restaurant and real estate interest
• Create a movement of pride
• Create a cohesive, consistent message
• Encourage all to have a fresh look at Lake Forest
COUNCIL ACTION: For discussion only
2. Consideration to Waive Purchasing Requirement for Competitive Pricing per
Administrative Directive 3-5, and Award a Three year Contract for Advertising in
relation to the Lake Forest Marketing Campaign in the amount of $49,992.00 to JWC
Media.
CITY COUNCIL CONTACT: Alderman Prue Beidler and
STAFF CONTACT: Susan Banks, Communications Manager (847.810.3672)
4
Monday, May 15, 2017 City Council Agenda
PURPOSE AND ACTION REQUESTED: At the October 3, 2016 meeting, the City Council
approved a contract to hire a marketing/advertising advisor to help develop a marketing
plan for the City of Lake Forest as directed by Mayor Schoenheider. Also at that time, a film
maker was hired to produce targeted films of various lengths which will serve as promotional,
educational and advertising pieces. At this time, the Marketing Team is exploring print media
options and recommends purchasing advertising in Sheridan Road magazine (a JWC
subsidiary publication), which is distributed to every household and business in Lake Forest,
Lake Bluff, Highland Park, Glencoe, Winnetka, Northfield, Wilmette, Kenilworth, Northbrook
and Glenview. Sheridan Road magazine has an average readership rate of 120,000. The
team recommends a series of full page, four-color ads in the magazine. Other print media
being explored includes Crain’s Chicago Business, Chicago magazine, and Chicago Parent
as the Team targets young professionals and families.
BUDGET/FISCAL IMPACT: The cost of advertising in Sheridan Road includes a discounted rate
with 8 print ads running from June 2017-June 2018 and a free editorial article in the June 2017
issue.
FY2018 Funding Source Amount
Budgeted
Amount Requested Budgeted?
Y/N
ACCT #10111014115421 $35,000 $ 16,664.00 Y
COUNCIL ACTION: Consideration to Waive Purchasing Requirement for Competitive Pricing
per Administrative Directive 3-5, and Award a Three year Contract for Advertising in relation to
the Lake Forest Marketing Campaign in the amount of $49,992.00 over a period of three years
(FY 2018, 2019 and 2020) to JWC Media.
4. OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS
5. ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approval of the May 1, 2017 First Session City Council Meeting Minutes
A copy of the minutes can be found on page 274.
COUNCIL ACTION: Approval of the Minutes
2. Approval of the May 1, 2017 Second Session City Council Meeting Minutes
A copy of the minutes can be found on page 280.
COUNCIL ACTION: Approval of the Minutes
COUNCIL ACTION: Approval of the two (2) Omnibus items as presented
5
Monday, May 15, 2017 City Council Agenda
6. ORDINANCES
7. NEW BUSINESS
1. Request for City Council Approval of an Agreement for Professional Design Services
for the Telegraph Metra Station Train Bridge Project
STAFF CONTACT: Robert W. Ells, Superintendent of Engineering (847-810-3555)
PURPOSE AND ACTION REQUESTED: Staff is requesting City Council approval to enter into an
agreement with Hanson Professional Services Inc. to perform professional design services for
the Telegraph Metra Station Train Bridge Project.
BACKGROUND/DISCUSSION: In March, 2012, the City awarded a contract to HDR, Inc. to
perform Phase I preliminary design services for the Telegraph Metra Station Pedestrian
Underpass Project. The cost of this contract was $208,485.93 and was paid for by The City of
Lake Forest. HDR prepared eight design concepts for City review. The basis of design for all
of the alternatives was the overwhelming input from Metra and their tenant railroads that
there be no interruption to train schedules during the entire construction of an underpass. This
meant that a pedestrian tunnel would need to be installed using a Jack & Bore method
under the live railroad tracks. City Council ultimately chose option 2b which became known
as the “Bowl Design”. Upon completion and approval of the preliminary design phase in
June, 2013, the estimated project cost was $5,000,000.00.
The City entered into a Phase II final design contract with HDR in the fall of 2013. The design
fee for Phase II was $549,673.00 to be paid at an 80/20 split with the Federal grant paying the
80% and the State paying the 20%.
Once detailed design work and geotechnical studies were underway, it was determined that
the anticipated structural concept of using sheeting and piles to reinforce the retaining wall
systems along the track would not be adequate due to soil conditions. The basis of the
structural design was changed to a drilled shaft concept which increased the estimated cost
of the project significantly.
At the conclusion of the Phase II final design, the project construction estimate was
$10,807,627.00 with an estimated construction engineering cost of $1,200,000.00 bringing the
anticipated total cost to just over $12 million dollars. With an allowance for permits, fees and
construction contingency, the expected cost is approximately $13,000,000.00. After
discussions with Metra on strategies to move forward with the project, the City hired a third-
party consultant to verify the HDR cost data. Using the HDR design data, the consultant
priced the cost of constructing the “bowl design” at $13,438,403.
With the estimated costs associated with constructing a pedestrian underpass using the
traditional construction method of boring and jacking the tunnel under the tracks now
verified, the City once again met with Metra officials. The discussion centered around
changing the method of construction from installing an underground tunnel to constructing a
train bridge that would require limited, scheduled track outages but anticipated to reduce
6
Monday, May 15, 2017 City Council Agenda
the construction costs by approximately $2,500,000. Metra has agreed in principal to support
this construction method.
Attached on page 287 of the agenda packet is a more detailed memorandum regarding
this project.
Staff is recommending that an exception be made to the RFP process (Section 9.0 K) of the
City’s purchasing procedures) and the firm be utilized for design of this project.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
City Council 2/21/17 Approve entering into an MOU with Metra
City Council 3/7/16 Approval of contract with Hanson for train
bridge concept study.
Public Works Committee 2/16/2016 Reviewed
City Council 4/20/15 Authorize funding for Phase II final
engineering to HDR for underpass project.
City Council 10/20/14 Discussion of various items relating to West
Train Station Pedestrian Underpass project.
City Council 7/16/12
Review Preliminary design options for
underpass project and approval of a
resolution supporting an Amtrak Hiawatha
Station stop in Lake Forest.
City Council 3/5/12
Award Phase I contract to HDR
Engineering for Pedestrian Underpass
project.
City Council 1/19/10 Approve recommendation supporting an
Amtrak stop in Lake Forest.
BUDGET/FISCAL IMPACT: Staff is recommending approval of design services this evening so
the design can be completed and an engineer’s estimate of cost can be created.
Once IDOT approves the Project Programming Information funding document for this effort,
the City will pay Hanson directly for the design services and be reimbursed at 100% from the
State funds previously secured.
Beginning on page 291 of your packet is a copy of the design services agreement
Below is an estimated summary of Project budget:
FY2018 Funding Source Account Number Amount
Budgeted
Amount
Requested
Budgeted?
Y/N
Capital 311-0050-417-7689 0 $281,421 N
7
Monday, May 15, 2017 City Council Agenda
If necessary a Supplemental Appropriation will be submitted for City Council Approval at the
end of the year. As noted above grant funds will be the funding source for this expense.
COUNCIL ACTION: Acknowledge the exception noted in Section 9.0K of the City’s Purchasing
Directive authorizing a waiver of bidding for professional Services based on existing
relationship and approve an agreement with Hanson Professional Services for Professional
Design Services for the Telegraph Metra Station Train Bridge Project in the amount of $281,421.
8. ADDITIONAL ITEMS FOR COUNCIL DISCUSSION
9. ADJOURNMENT
Office of the City Manager May 10, 2017
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.
8
Contact Info
• First Name:Nick
• Last Name:Bothfeld
• E-mail:nbothfeld@hotmail.com
• Title:financial planner and investment advisor
• Organization:
• Address:1361 W Whitmore Ct
• Address Line 2:
• City:Lake Forest
• State:IL
• Zip:60045
• Mobile Phone:847-338-4838
• Home Phone:847-283-0808
• Notes:
Resident Data/Stats
• Ward:Ward 3
• Precinct:
• US Citizen:Yes
• Registered Voter:Yes
• Lake Forest Resident since(YYYY):1995
• Business Name:Bothfeld Financial Partners
• Type of Business:financial planning and investment advisor
• Business Phone:847-283-9443
• Position:financial planner and investment advisor
• Date of Birth (Optional):
• Education:
BA HarvardMBA University of ChicagoCRPC College for Financial Planning
• Spouse's Name:Elizabeth Brown
• Children's Birth Years:1985
Interest in Community Positions
• Alderman:Consider Me For this Position In the Future
• Caucus Committee: I Currently Hold This Office
9
• Other Positions:I've been part of numerous non-profit boards in various
capacities and understand the dynamics of how they work. I believe I have
good skills in working with others to reach a consensus. I would hope to
contribute financial acumen and a healthy dose of common sense.
Other Considerations
• Please list any regular commitments or travel that would interfere with your
attendance at scheduled meetings:
none
• Please list any current or previous community service activites, interests,
directorships, etc. -- public or private. For each activity please indicate years
served and positions held:
Alliance for the Great Lakes non-profit - Board of Directors, Treasurer,
member of Executive Committee 1997-2007
Winter Club of Lake Forest, non-profit, Board of Governors, Treasurer,
President, 2002-2007
Brushwood Center at Ryerson Woods, non-profit, Board of Directors,
Treasurer, Chairman of the Board 2010-on
• Please list other activities, specialized skills, knowledge, or professional
experience that would contribute to your effectiveness in the position(s) for which
you are applying or expressing possible future interest:
I've been part of numerous non-profit boards in various capacities and
understand the dynamics of how they work. I believe I have good skills in
working with others to reach a consensus. I would hope to contribute
financial acumen and a healthy dose of common sense.
• References (Optional):
• Please state briefly why you are volunteering to serve The City of Lake Forest:
• Please list any interests or activities that could lead to, or BE PERCEIVED as, a
conflict of interest if you become a candidate or appointee.:
none that I can think of
10
Contact Info
• First Name:William
• Last Name:Moskoff
• E-mail:moskoff148@gmail.com
• Title:Hollender Professor Emeritus of Economics
• Organization:
• Address:148 Washington Circle
• Address Line 2:
• City:Lake Forest
• State:IL
• Zip:60045
• Mobile Phone:
• Home Phone:(847) 234-8243
• Notes:
Resident Data/Stats
• Ward:Ward 1
• Precinct:
• US Citizen:Yes
• Registered Voter:Yes
• Lake Forest Resident since(YYYY):1970-1972, 1983-present
• Business Name:
• Type of Business:
• Business Phone:
• Position:
• Date of Birth (Optional):
• Education:
B.A. - Hunter College (Economics)
M.A. - Univ. of Wisconsin-Madison (Economics)
Ph.D. - Univ. of Wisconsin-Madison (Economics0
M.S. - Univ. of Ill - Chicago - Biology
• Spouse's Name:Carol Gayle
• Children's Birth Years:1966, 1968, 1971
Interest in Community Positions
11
• Gorton Community Center Board of Directors:I Am Currently Applying For This
Position
• Library Board:Consider Me For this Position In the Future
• Other Positions:
Other Considerations
• Please list any regular commitments or travel that would interfere with your
attendance at scheduled meetings:
I sing in a choir and we rehearse on Thursday nights.
• Please list any current or previous community service activites, interests,
directorships, etc. -- public or private. For each activity please indicate years
served and positions held:
Member Board of Directors - Lakeside Congregation for Reform Judaism
Treasurer and member of Executive Committee - Lakeside Congregation
• Please list other activities, specialized skills, knowledge, or professional
experience that would contribute to your effectiveness in the position(s) for which
you are applying or expressing possible future interest:
• References (Optional):
• Please state briefly why you are volunteering to serve The City of Lake Forest:
I have lived in this community for a very long time and I believe in its many
virtues and want to do my part in helping the city serve its citizen well.
• Please list any interests or activities that could lead to, or BE PERCEIVED as, a
conflict of interest if you become a candidate or appointee.:
12
13
14
PROCLAMATION
WHEREAS, the McKinlock Post 264 of the American Legion has undertaken to provide
appropriate exercises and entertainment in celebration of LAKE FOREST DAY on WEDNESDAY,
AUGUST 2, 2017 with a view to bringing together the people of our City in the furtherance of civic
interest and advancement of community fellowship; and
WHEREAS, the McKinlock Post 264 of the American Legion honors Lake Forest residents,
employees, neighbors and friends by adopting the theme “Lake Forest American Legion Salutes Lake
Forest Open Lands and Market Square”
THEREFORE, be it hereby proclaimed that said LAKE FOREST DAY celebration is declared
to be a City Fair and in pursuance thereof, and TUESDAY, AUGUST 1, 2017, and WEDNESDAY,
AUGUST 2, 2017, shall be observed as a holiday in The City of Lake Forest and our people are urged to
forsake their ordinary pursuits and gather in West Park in a spirit of comradeship and good will in
support of the ideals of our City.
Robert Lansing, Mayor
15
PROCLAMATION OF
NATIONAL HISTORIC PRESERVATION MONTH
WHEREAS, since 1971, the National Trust for Historic Preservation has been celebrating a month-long observance of historic preservation, recognizing grassroots efforts across America to protect and preserve historic structures, places, and landscapes;
WHEREAS, The City of Lake Forest was one of the first communities in the Chicago region to take a progressive role in historic preservation initiatives, including:
• 1975, Ragdale led the way when it became a National Landmark.
• 1976, the area of the 1857 Plan of Lake Forest became the Lake Forest National Register Historic District.
• 1980, the Vine-Oakwood-Green Bay Road National Register Historic District was designated
• 1995, the Green Bay Road National Register Historic District was designated.
• 2013, the West Park National Register Historic District was designated. Since 1976, numerous individual properties have been designed as National Register Historic Properties. Today, well over 1,200 structures and open spaces in Lake Forest are recorded in the City’s inventory as being historically significant, and at least 35 areas and individual properties have received the City’s Landmark Designation.
WHEREAS, in the mid-1990’s, The City of Lake Forest officially recognized that its ability to safeguard its distinctive historic character and resources was being tested by development incompatible with the existing character of historic districts and homes, and therefore determined that public awareness of the importance of historic preservation was to be a high priority.
WHEREAS, in 1998 The City of Lake Forest, in response to this challenge, adopted a Comprehensive Plan that included strengthening its historic preservation efforts. The City Council:
• created a Historic Preservation Commission independent of the Building Review Board,
16
• attached a rider to all real estate transactions informing buyers of the importance of its ordinances and Comprehensive Plan in maintaining compatibility with community character, historic structures and streetscapes, and
• undertook revision of its zoning and demolition processes, including amending Zoning Chapter 51: Historic Preservation.
NOW, THEREFORE, BE IT RESOLVED THAT I, Robert Lansing, Mayor of Lake Forest, do proclaim May 2017 to be National Historic Preservation Month and call upon all residents to honor the importance of historic preservation throughout our community. We look forward to continued coordination with the Lake Forest Preservation Foundation as it works with our City officials and residents to protect and preserve the historic visual character of this remarkable city. ADOPTED THIS 15TH DAY OF MAY, 2017 Mayor
17
MEMORANDUM
THE CITY OF LAKE FOREST
OFFICE OF THE CITY MANAGER
Page 1
TO: Robert R. Kiely, Jr., City Manager
CC: Catherine Czerniak, Director of Community Development
Pete Siebert, Fire Chief
Sally Swarthout, Director of Parks, Recreation, Forestry
FROM: Mike Strong, Assistant to the City Manager
DATE: May 11, 2017
SUBJECT: Special Event Request – Elawa Farm Foundation Centennial Celebration
PURPOSE:
The Elawa Farm Foundation (“Foundation”) is requesting authorization to host a special event
at the Elawa Farm property located at 1401 Middlefork Drive in honor of its 100-year
anniversary. The event is proposed to be held on Saturday, September 9, 2017, from 6:00 p.m.
to 11:00 p.m. Included below is background information on Elawa Farm, and the Foundation’s
specific request. The purposes of this memorandum is to outline the Foundation’s request to
host a Centennial event celebration, and discuss issues vis-à-vis the proposed event and the
Special Use Permit (“SUP”) for Elawa Farm.
BACKGROUND:
In 1998, as part of the development of Middlefork Farm, the City acquired 16 acres of land
including the Gentlemen’s Farm complex known as Elawa Farm. The northern portion of this
land is dedicated as a neighborhood park and serves the general public similar to other parks
within the City, all of which are managed and overseen by the Parks and Recreation
Department. At the time of approval of Middlefork Farm, Elawa Farm was in quite disrepair and
in need of substantial renovation, rehabilitation and a clearly defined community purpose.
Through the tremendous commitment of time and generous donations from many people led by
a group of individuals that would later develop into the Elawa Farm Foundation, the restoration
and adaptive reuse of Elawa Farm as an environmental and historic themed community
resource was achieved.
Similar to other City owned facilities such as the Grove Cultural Campus and Gorton Community
Center, Elawa Farm offers space for tenants, classes and programs, and hosts various events
throughout the year. Since Elawa Farm is located in a residential district, an SUP authorizes,
subject to very specific conditions, this type of non-residential use in a residential district.
Today, the Elawa Farm Foundation is the authorized operator of the facility pursuant to certain
rights and obligations that have been memorialized through the execution of an Operating
Agreement (“Agreement”) that was entered into between the Foundation and The City in March
18
Page 2
2014. Among these responsibilities include the requirement that the Foundation operate the
site in accordance with the SUP.
HISTORY OF SPECIAL USE PERMIT AND RECENT CHALLENGES:
On April 14, 2010 and June 9, 2010, the Plan Commission held public hearings and considered
the request to grant an SUP to Elawa Farm that would authorize its use as a community facility.
The deliberations over the proposed SUP took over three months, and involved many
stakeholders. The Commission’s recommendation was based on public input by the
Foundation, Middlefork Homeowners, Wildlife Discovery Center, Lake Forest Open Lands, and
others. In total 29 conditions of approval were incorporated into the SUP that seek to work
together to meet the interests of the various parties that were involved in the deliberations.
Importantly, these conditions aim to balance these competing interests to minimize impacts on
the surrounding neighborhood. Key issues that the SUP addresses include:
- Parameters to guide future uses and changes at Elawa Farm (Via the adoption of a
Master Plan for the facility)
- Regulations for ongoing daily activities and programs
- Regulations for events and fundraising activities (i.e. hours of operation, quantity,
capacity, noise, etc.)
- Various operational parameters: hours of operation, parking, lighting, capacity of the
site, noise, and others
A copy of the SUP, which was adopted on June 21, 2010, has been attached to this
memorandum.
With respect to special events and fundraising activities, the Plan Commission recognized the
importance of these opportunities to support the various tenants that occupy Elawa Farm. They
are an important part of providing a revenue stream to support the ongoing maintenance of the
facility. This is an important point, as Elawa Farm is intended to be a financially self-supporting
facility through rents received from tenants and hosted private or public events. However, the
SUP plays a key role in regulating these activities.
Over the past several years, daily activity and private and public special event activities have
increased tremendously at Elawa Farm. Foundation growth over the past five years has been
exceptional. Growth in daily room rentals have increased by over 45% over the past three
years, program participants have grown from 77 in 2012 to over 800 in 2016, and individual
donor engagement has averaged 26% growth per year since 2012. Additionally, the popularity
of the Wildlife Discovery Center continues to attract new and returning patrons each year. In
2016, the Wildlife Discovery Center estimates over 18,000 patrons toured the facility and nearly
50,000 attended fundraising or outreach programs, weekend classes, school visits or
participated in off-site activities.
The tension between the continued growth and popularity of Elawa Farm and the restrictions
within the SUP and Agreement has caused conflict between tenants and the adjacent
neighborhood. For example, the Wildlife Discovery Center’s open house and Croctoberfest
event held in 2015 significantly impacted on-street parking within the neighborhood which raised
several pedestrian safety concerns by homeowners. Additionally, since private rental events
and weddings hosted by the Foundation have grown in frequency, neighbors have raised
concerns with the safety, noise, duration, alcohol and parking impacts these events have on the
surrounding area.
19
Page 3
The City has sought ways to help reduce and limit these impacts, including the installation of an
expanded parking area, enforcing shuttle requirements for larger events for both tenants (As
well as prohibiting on-street parking within the neighborhood), and working through the Elawa
Farm Commission to enhance communication between the Foundation and Middlefork
homeowners. While there have been some improvements in the way of communication, the
level of activity and current operations at Elawa Farm remains a very divisive topic among
stakeholders.
SUMMARY OF SPECIAL EVENT REQUEST:
While the use of the facility for fundraising activities is not inconsistent with the SUP or
Agreement, the anticipated attendance for the Centennial Celebration exceeds the allowable
limit for special events at the facility. The projected attendance capacity has been proposed at
300 patrons; however, the allowable occupancy for this site is 200.
When the SUP was created, conversations took place between the Elawa Farm Foundation and
members of the Fire Prevention Bureau and Community Development Department regarding
special event capacity limits. At that time, there were multiple scenarios agreed to that the
Foundation could follow in order to preserve this limit. Based on the size of the buildings on the
site and allowable space for tents, special events can adequately provide shelter for up to 200
patrons at one time.
This capacity limit was determined based on the cumulative impact large events have on
parking, noise, patron safety, adjacent properties and the surrounding neighborhood.
Additionally, this limit ensures adequate indoor shelter space for outdoor events that may
experience adverse or sudden weather situations.
Recognizing the proposed attendance exceeds the established maximum for an event on the
site, City staff presented some alternatives for the fund raising event to the Foundation that
would comply with the current use regulations. The alternative options include, but may not be
limited to:
- Host multiple seatings for the event (afternoon/evening), to avoid exceeding the
maximum of 200 people on the site at one time.
- Consider hosting a more “premium” event; with a higher ticket value to achieve the
desired revenues with fewer attendees.
- Create a multiple-day or back-to-back, two-day event.
- Look at off-site locations for the event that have a greater capacity similar to the
approach taken by other not for profit groups in an effort to raise funds.
The Foundation stated that while these options could be considered, they may take away from
the fundraising opportunity hosting an event at the facility could provide, or be more costly and
operationally challenging on their staff to host and coordinate. In the end, the Foundation did
not accept the staff recommendation and requested the opportunity to present the request for
an exception to the Special Use Permit directly to the City Council.
CITY COUNCIL DIRECTION REQUESTED:
Staff is seeking direction from City Council on whether it is willing to support this one-time
special event. If the City Council is inclined to support it, City staff will work with the Foundation,
tenant, and neighbors to develop a plan of action for addressing concerns, site capacity issues,
and to develop a public safety plan given the scope of the event.
20
Page 4
If so directed, City staff will come back to City Council with a plan for accommodating the event
including conditions of approval as determined to be necessary to support this one-time
expanded use of the facility.
ATTACHMENTS:
Centennial Celebration Special Event Application and Site Plan
Special Use Permit and Master Plan for Elawa Farm
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
New Issue 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 2, 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.
74
(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.
75
(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
76
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: The Bank of New York Mellon Trust Company, National Association, 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.
77
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.
78
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.
79
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.
80
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.
81
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 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.
82
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.
83
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.
84
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.
85
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.
86
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.
87
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.
88
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.
89
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.
90
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.
91
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.
92
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.
93
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 2010C (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.
94
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, 2016 ............................ $2,442,982,041 100.00% 33.33% $126,089.40
Estimated Actual Value, 2016 .................................. $7,328,946,123 300.00% 100.00% $378,268.19
Total Direct Bonded Debt(3) ................................... $ 56,285,000 2.30% 0.77% $ 2,905.03
Less: Self-supporting Debt(3) ................................ (31,510,000) (1.29%) (0.43%) (1,626.32)
Total Net Direct Bonded Debt(3) ............................. $ 24,775,000 1.01% 0.34% $ 1,278.71
Overlapping Bonded Debt:
Schools ....................................................... $ 43,196,527 1.77% 0.59% $ 2,229.50
Others ........................................................ 45,120,336 1.85% 0.62% 2,328.79
Total Overlapping Bonded Debt ............................... $ 88,316,863 3.62% 1.21% $ 4,558.29
Total Net Direct and Overlapping Bonded Debt(3) ............. $ 113,091,863 4.63% 1.54% $ 5,837.00
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.
95
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 2012 2013 2014 2015 2016
Residential ............... $2,166,702,992 $2,047,760,158 $2,047,958,906 $2,105,361,682
Farm ...................... 2,485,744 3,330,967 4,001,932 4,080,940
Commercial ................ 207,360,589 200,625,492 196,562,054 196,233,065 N/A
Industrial ................ 65,556 62,064 61,541 46,548
Railroad .................. 1,432,258 1,768,723 1,844,203 2,213,824
Total ................... $2,378,047,139 $2,253,547,404 $2,250,468,636 $2,307,936,059 $2,442,982,041
Percent change +(-) ....... (5.28%)(3) (5.24%) (0.14%) 2.55% 5.85%
Notes: (1) Source: Lake County Clerk.
(2) Excludes the incremental valuation in the City's tax increment financing districts.
(3) Percentage based on 2011 Equalized Assessed Valuation of $2,510,615,104.
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 ............ 2007 ............. $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.
96
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.
97
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.
98
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).
99
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
100
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.
101
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.
102
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 0
All Other Liabilities ........................... 2,770,812 2,743,656 3,105,883 2,841,184 3,150,690
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.
103
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.
104
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.
105
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.
106
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.
107
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.
108
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).
109
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. 110
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.
111
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.
112
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 2, 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.
113
APPENDIX A
CITY OF LAKE FOREST, LAKE COUNTY, ILLINOIS
FISCAL YEAR 2016 COMPREHENSIVE ANNUAL FINANCIAL REPORT
114
COMPREHENSIVE ANNUALFINANCIAL REPORTOF THECITY OF LAKE FOREST, ILLINOISAs of and for the Year EndedApril 30, 2016City of Lake Forest Finance DepartmentElizabeth Holleb, Finance DirectorDiane Hall, Assistant Finance DirectorCITY OF LAKE FORESTTABLE OF CONTENTSAs of and for the Year Ended April 30, 2016Page(s)INTRODUCTORY SECTIONTransmittal Letteri - viCertificate of Achievement for Excellence in Financial Reporting viiList of Principal Officials viiiOrganizational ChartixFINANCIAL SECTIONINDEPENDENT AUDITORS' REPORT1 - 3REQUIRED SUPPLEMENTARY INFORMATIONManagement's Discussion and Analysis4 - 16BASIC FINANCIAL STATEMENTSGovernment-Wide Financial StatementsStatement of Net Position 17Statement of Activities 18 - 19Fund Financial StatementsBalance Sheet - Governmental Funds 20Reconciliation of the Balance Sheet of Governmental Funds to the Statement ofNet Position21Statement of Revenues, Expenditures and Changes in Fund Balances -Governmental Funds 22Reconciliation of the Statement of Revenues, Expenditures and Changes inFund Balances of Governmental Funds to the Statement of Activities 23Statement of Net Position - Proprietary Funds 24 - 25Statement of Revenues, Expenses and Changes in Net Position - ProprietaryFunds26Statement of Cash Flows - Proprietary Funds 27 - 28Statement of Fiduciary Net Position - Fiduciary Funds 29Statement of Changes in Fiduciary Net Position - Fiduciary Funds 30Index to Notes to Financial Statements 31Notes to Financial Statements 32 - 87115
CITY OF LAKE FORESTTABLE OF CONTENTS (cont.)As of and for the Year Ended April 30, 2016REQUIRED SUPPLEMENTARY INFORMATIONGeneral FundSchedule of Revenues, Expenditures and Changes in Fund Balance - Budgetand Actual - General Fund 88Special Revenue FundsSchedule of Revenues, Expenditures and Changes in Fund Balance - Budgetand Actual - Parks and Recreation Fund89Historical Pension InformationIllinois Municipal Retirement Fund - Schedule of Changes in the City's NetPension Liability and Related Ratios90Illinois Municipal Retirement Fund - Schedule of Employer Contributions91Police Pension Fund - Schedule of Changes in the City's Net Pension Liabilityand Related Ratios92Police Pension Fund - Schedule of Employer Contributions93 - 94Police Pension Fund - Schedule of Investment Returns95Firefighters' Pension Fund - Schedule of Changes in the City's Net PensionLiability and Related Ratios96Firefighters' Pension Fund - Schedule of Employer Contributions97 - 98Firefighters' Pension Fund - Schedule of Investment Returns99Other Postemployment Benefits Plan - Schedule of Employer Contributions andSchedule of Funding Progress100Notes to Required Supplementary Information101SUPPLEMENTARY INFORMATIONGovernmental FundsCombining Balance Sheet - Nonmajor Governmental Funds 102 - 104Combining Statement of Revenues, Expenditures and Changes in Fund Balances -Nonmajor Governmental Funds 105 - 107Schedules of Revenues, Expenditures and Changes in Fund Balances (Deficit) -Budget and ActualAsset Forfeiture Fund - Nonmajor Special Revenue Fund108Foreign Fire Insurance Tax Fund - Nonmajor Special Revenue Fund109Emergency Telephone Fund - Nonmajor Special Revenue Fund110Parks and Public Land Fund - Nonmajor Special Revenue Fund111Motor Fuel Tax Fund - Nonmajor Special Revenue Fund112General Cemetery Fund - Nonmajor Special Revenue Fund113CITY OF LAKE FORESTTABLE OF CONTENTS (cont.)As of and for the Year Ended April 30, 2016SUPPLEMENTARY INFORMATION(cont.)Senior Resources Commission Fund - Nonmajor Special Revenue Fund 114Housing Trust Fund - Nonmajor Special Revenue Fund 115Debt Service Fund - Nonmajor Debt Service Fund 116Route 60 Bridge Improvements Fund - Nonmajor Capital Projects Fund 117Route 60 Intersection Improvements Fund - Nonmajor Capital Projects Fund 118Laurel/Western Redevelopment TIF Fund - Nonmajor Capital Projects Fund 119Capital Improvements Fund - Major Capital Projects Fund 120Schedules of Revenues, Expenses, and Nonoperating Revenues (Expenses) -Budget and Actual (Budgetary Basis)Waterworks and Sewerage Fund - Major Enterprise Fund 121Deerpath Golf Course Fund - Nonmajor Enterprise Fund 122Combining Statement of Net Position - Internal Services Funds 123Combining Statement of Revenues, Expenses and Changes in Net Position -Internal Service Funds 124Combining Statement of Cash Flows - Internal Service Funds 125Schedules of Revenues, Expenses, and Nonoperating Revenues (Expenses) -Budget and Actual (Budgetary Basis)Fleet Fund - Internal Service Fund 126Liability Insurance Fund - Internal Service Fund127Self Insurance Fund - Internal Service Fund128Combining Statement of Fiduciary Net Position - Pension Trust Funds129Combining Statement of Changes in Fiduciary Net Position - Pension Trust Funds 130Statement of Changes in Fiduciary Net Position - Budget and ActualPolice Pension - Pension Trust Fund131Firefighters' Pension - Pension Trust Fund132Statement of Changes in Assets and Liabilities - Agency Fund133Statement of Net Position and General Fund Balance Sheet - Discretely PresentedComponent Unit - Lake Forest Library134Statement of Activities and General Fund Statement of Revenues, Expenditures,and Changes in Fund Balance - Discretely Presented Component Unit - LakeForest Library135Summary of Debt Service Requirements to Maturity136Debt Service Requirements to Maturity - General Obligation Bonds 137 - 141116
CITY OF LAKE FORESTTABLE OF CONTENTS (cont.)As of and for the Year Ended April 30, 2016SUPPLEMENTARY INFORMATION(cont.)Special Service Area 25 Special Tax Bonds - 2003 Series 142Special Service Area 26 Special Tax Bonds - 2003 Series 143Special Service Area 29 Special Tax Bonds - 2004 Series 144General Obligation Bonds - 2008 Series 145General Obligation Bonds - 2009 Series 146General Obligation Bonds - 2010 Series B 147General Obligation Bonds - 2010 Series C 148General Obligation Bonds - 2011 Series A 149General Obligation Bonds - 2011 Series B 150General Obligation Bonds - 2013 Series 151General Obligation Bonds - 2015 Series 152Combining Balance Sheet - Debt Service Fund 153 - 154Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance -Debt Service Fund 155 - 156STATISTICAL SECTIONNet Position by Component - Last Ten Fiscal Years 157 - 158Changes in Net Position - Last Ten Fiscal Years 159 - 162Fund Balances of Governmental Funds - Last Ten Fiscal Years 163 - 164Changes in Fund Balances for Governmental Funds - Last Ten Fiscal Years 165 - 166Assessed Value and Actual Value of Taxable Property - Last Ten Levy Years 167Property Tax Rates - Direct and Overlapping Governments - Last Ten Levy Years 168Principal Property Taxpayers - Current Year and Nine Years Ago 169Property Tax Levies and Collections - Last Ten Levy Years 170Tax Extensions for City Funds - Last Ten Levy Years 171Sales Tax Base and Number of Principal Payers - Taxable Sales by Category - .5%Sales Tax - Last Ten Calendar Years 172Sales Tax Base and Number of Principal Payers - Taxable Sales by Category - 1%Sales Tax - Last Ten Calendar Years 173Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years 174Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 175Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 176Direct and Overlapping Governmental Activities Debt 177CITY OF LAKE FORESTTABLE OF CONTENTS (cont.)As of and for the Year Ended April 30, 2016STATISTICAL SECTION(cont.)Legal Debt Margin Information - Last Ten Fiscal Years 178Pledged Revenue Coverage - Last Ten Fiscal Years 179Demographic and Economic Information - Last Ten Fiscal Years 180Principal Employers - Current Year and Nine Years Ago 181Full-Time Equivalent Employees - Last Ten Fiscal Years 182Operating Indicators - Last Ten Fiscal Years 183 - 184Capital Asset Statistics - Last Ten Fiscal Years 185117
i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¶VUHSUHVHQWDWLRQVFRQFHUQLQJWKHILQDQFHVRIWKH&LW\RI/DNH)RUHVW&RQVHTXHQWO\PDQDJHPHQWDVVXPHVIXOOUHVSRQVLELOLW\IRUWKHFRPSOHWHQHVVDQGUHOLDELOLW\RIDOORIWKHLQIRUPDWLRQSUHVHQWHGLQWKLVUHSRUW7RSURYLG HDUHDVRQDEOHEDVLVIRUPDNLQJWKHVHUHSUHVHQWDWLRQVPDQDJHPHQWRIWKH&LW\ KDVHVWDEOLVKHGDFRPSUHKHQVLYHLQWHUQDOFRQWUROIUDPHZRUNWKDWLVGHVLJQHGERWK WRSURWH FW WKHJRYHUQPHQW¶VD VVHWV IURPORVV WKHIW RUPLVXVHD QG WRFRPSLOHVXIILFL HQW UHOLDEOHLQIRUPDWLRQIRUWKHSUHSDUDWLRQRIWKH&LW\RI/DNH)RUHVW¶VILQDQFLDOVWDWHPHQWVLQFRQIRUPLW\ZLWK*$$3%HFDXVH WKH FRVW RILQW HUQDO FRQWUROV VKRXOG QRW RXWZHLJK WKHLU EHQHILWV WKH &LW\¶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¶VILQDQFLDOVWDWHPHQWVKDYHEHHQDXGLWHGE\%DNHU7LOO\9LUFKRZ.UDXVH//3DILUPRIOLFHQVHGFHUWLILHGSXEOLFDFFRXQWDQWV7KHJRDORIWKHLQGHSH QGHQWDXGLWLVWRSURYLGHUH DVRQDEOHDVVXUDQFHWKDWWKHILQDQFLDOVWDWHPHQWVRIWKH&LW\ RI/DNH)RUHVWIRUWKHIL VFDO\HDUHQGHG$SULODUHIUHHRIPDWHULDOPLVVWDWHPHQW7KHLQGHSHQGHQWDXGLWLQYROYHGH[DPLQLQJRQDWHVWEDVLVHYLGH QFHVXSSRUWLQJWKHDPRXQWVDQGGLVFORVXUHVLQWKH ILQDQFLDOVWDWHPHQWV DVVHVVLQJWKHDFFRXQWLQJSULQFLSOHVXVHGDQGVLJQLILFDQWHVWLPDWHVPDGHE\PDQDJHPHQW DQGHYDOXDWLQJWKHRYHUDOOILQDQFLDOVWDWHPHQWSUHVHQWDWLRQ7KHLQGHSHQGHQWDXGLWRUFRQFOXGHGEDVHGXSRQWKHLUDXGLWWKDWWKHUH ZDVDUHDVRQDEOHEDVLVIRUDQXQPRGLILHGRSLQLRQWKDWWKH&LW\¶VILQDQ FLDOVWDWHPHQWVIRUWKHILVFDO\HDUHQGH G$SULODUHIDLUO\SUHVHQWHGLQFRQIRUPLW\ZLWK*$$37KHLQGHSHQGHQWDXGLWRU¶VUHSRUWLVSUHVHQWHGDVWKHILUVWFRPSRQHQWRIWKHILQDQFLDOVHFWLRQRIWKLVUHSRUW*$$3UHTXLUHWKDWPDQDJHPHQWSURYLG HDQDUUDWLYHLQWURGXFWLRQ RYHUYLHZDQGDQDO\VLVWRDFFRPSDQ\WKHEDVLFILQDQFLDOVWDWHPHQWVLQWKHIRUPRI0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV 0' $ 7KLVOHWWHURIWUDQVPLWWDOLVGHVLJQHGWRFRPSOHPHQWWKH0' $DQGVKRXOGEHUHDGLQFRQMXQFWLRQZLWKLW7KH&LW\¶V0' $LVORFDWHGLPPHGLDWHO\IROORZLQJWKHUHSRUWRIWKHLQGHSHQGHQWDXGLWRUViiProfile of The City of Lake Forest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
VILQDQFLDOSODQIRUH[SHQGLWXUHVRYHUWKHFRXUVHRIWKH ILVFDO \HDU WKH DQQXDO $SSURSULDWLRQ 2UGLQDQFH LV WKH IRUPDO OHJDO PHFKDQLVP E\ ZKLFK WKH &LW\&RXQFLO DXWKRUL]HV WKH DFWXDO H[SHQGLWXUH RI IXQGV EXGJHWHG LQWKH DQQXDO EXGJHW , W DSSURSULDWHVVSHFLILFVXPVRIPRQH\E\REMHFWDQGSXUSRVHRIH[SHQGLWXUH151,000 833,200 77,873 247,300 57,166 175,700 0100,000200,000300,000400,000500,000600,000700,000800,000900,000Median Household Income Median Home ValueLake ForestLake CountyIllinois118
iii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actors Affecting Financial ConditionLocal Economy.7KH&LW\RI/DNH)RUHVWLVQRWLPPXQHWRFKDOOHQJHVEURXJKWRQE\QDWLRQDODQGVWDWHHFRQRPLFFRQGLWLRQVEXWKDVEHHQSURDFWLYHLQLGHQWLI\LQJPLWLJDWLRQVWUDWHJLHV• 8QHPSOR\PHQWOHYHOVLQ/DNH)RUHVWDUHZHOOEHORZWKHOHYHOVIRU/DNH&RXQW\DQGWKH6WDWHRI,OOLQRLV)RUFDOHQGDU\HDUWKH&LW\¶VDQQXDODYHUDJHXQHPSOR\PHQWUDWHZDVHVWLPDWHGWREHFRPSDUHGWRIRU/DNH&RXQW\DQG IRUWKH6WDWHRI,OOLQRLV• 7KHFRQVXPHUFRQILGHQFHLQGH[LVFORVHO\PRQLWRUHGE\HFRQRPLVWVEHFDXVHFRQVXPHUVSHQGLQJDFFRXQWVIRURIWKH8QLWHG6WDWHV¶HFRQRPLFDFWLYLW\,Q$XJXVWWKHLQGH[ZDVXSIURP LQ-XO\DQGFRPSDULQJIDYRUDEO\WRWKH$XJXVWLQGH[RI7KHLQGH[UHPDLQVDERYH WKH PLQLPXP OHYHO DVVRFLDWHG ZLWK DK HDOWK\ HFRQRP\$ Q LQGH[ DERYH V LJQDOVJURZWK$V UHYHQXHV GHFOLQHG LQ UHFHQW \HDUV GXH WR QDWLRQDOHFRQRPLF FRQGLWLRQV WKH &LW\ KDV SURDFWLYHO\ UHGXFHGRSHUDWLQJ H[SHQVHV WR HQVXUH D EDODQFHG EXGJHW DQGFRPSOLDQFH ZLWK WKH &LW\¶V ILVFDO SROLFLHV 6LQFH SHUVRQQHOFRVWV UHSUHVHQW QHDUO\ RI WKH *HQHUDO )XQG RSHUDWLQJEXGJHWLWKDVEHHQQHFHVVDU\WRDFKLHYHFRVWVDYLQJVWKURXJKUHGXFHGSHUVRQQHO,QILVFDO\HDUV )< WKH&LW\KDV UHGXFHG EXGJHWHG IXOO WLPH HPSOR\HHV E\ SRVLWLRQVUHWXUQLQJWKH&LW\¶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¶V*HQHUDO)XQGUHYHQXHVFRPHIURPSURSHUW\WD[HVZKLFKFRQWLQXHWREHDVWDEOH UHYHQXH VRXUFH 7KH RWKHU PDMRU IXQGLQJ VRXUFHV RI VDOHV WD[ LQFRPH WD[ XWLOLW\ WD[HV DQGivEXLOGLQJSHUPLWUHYHQXHVPHW)<EXGJHWHVWLPDWHVLQDJJUHJDWH+RZHYHUWKHVHUHYHQXHVKDYH\HWWRUHDFKOHYHOVSULRUWRWKHUHFHVVLRQ(IIHFWLYH0D\WKH&LW\LPSOHPHQWHGDQHZVDQLWDWLRQIHHWKDWJHQHUDWHVSHU\HDU7KLVUHYHQXHLVFXUUHQWO\GHSRVLWHGWRWKH&DSLWDO,PSURYHPHQWV)XQG7KHILQDQFLDOFRQGLWLRQRIWKH6WDWHRI,OOLQRLVFRQWLQXHVWREHDVLJQLILFDQWFRQFHUQDOWKRXJKWKH&LW\KDVOLPLWHGUHOLDQFHRQWKH6WDWHIRUGLUHFWIXQGLQJ7KH&LW\LVYLJLODQWLQPRQLWRULQJDQ\OHJLVODWLRQWKDWPD\EH LQWURGXFHG WKDW FRXOG KDYH D QHJDWLYH LPSDFW RQW KH &LW\¶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¶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³IODVK´UHSRUWVDUHSURYLGHGWRWKH&LW\&RXQFLO)LQDQFH&RPPLWWHH,QDGGLWLRQWKH&LW\IROORZVWKHILVFDOSROLF\DSSURYHGDQQXDOO\E\WKH&LW\&RXQFLO7KH)LVFDO3ROLF\LVGHVLJQHGWRHVWDEOLVKJXLGHOLQHVIRUWKHILVFDOVWDELOLW\RIWKH&LW\DQGWRSURYLGHJXLGHOLQHVIRUWKH&LW\¶VFKLHIH[HFXWLYHRIILFHUWKH&LW\0DQDJHU(IIHFWLYHILVFDOSROLF\ • &RQWULEXWHVVLJQLILFDQWO\WRWKH&LW\¶VDELOLW\WRLQVXODWHLWVHOIIURPILVFDOFULVLV• (QKDQFHVVKRUWWHUPDQGORQJWHUPILQDQFLDOFUHGLWDELOLW\E\KHOSLQJWRDFKLHYHWKHKLJKHVWFUHGLWDQGERQGUDWLQJVSRVVLEOH• 3URPRWHVORQJWHUPILQDQFLDOVWDELOLW\E\HVWDEOLVKLQJFOHDUDQGFRQVLVWHQWJXLGHOLQHV• 'LUHFWVDWWHQWLRQWRWKHWRWDOILQDQFLDOSLFWXUHRIWKH&LW\UDWKHUWKDQVLQJOHLVVXHDUHDV• 3URPRWHVWKHYLHZRIOLQNLQJORQJWHUPILQDQFLDOSODQQLQJZLWKGD\WRGD\RSHUDWLRQVDQG• 3URYLGHVWKH&RXQFLODQGWKHFLWL]HQVDIUDPHZRUNIRUPHDVXULQJWKHILVFDOLPSDFWRIJRYHUQPHQWVHUYLFHVDJDLQVWHVWDEOLVKHGILVFDOSDUDPHWHUVDQGJXLGHOLQHV,Q)LVFDO<HDUWKH&LW\&RXQFLODGRSWHGUHYLVLRQVWRWKH)LVFDO3ROLF\HIIHFWLYHIRU)<WKDWFODULILHGWKHDSSOLFDELOLW\RIWKH3URSHUW\7D[([WHQVLRQ/LPLWDWLRQ$FWWRWKH&LW\HVWDEOLVKHGDSROLF\IRUVHWWLQJDVLGHUHVHUYHVWRPHHWWKH&LW\¶V2WKHU3RVW(PSOR\PHQW%HQHILWV 23(% OLDELOLW\UHYLVHGWKHILQDQFLQJSDUDPHWHUVIRUHVWDEOLVKPHQWRI6SHFLDO6HUYLFH$UHDVDQGFRPPLWWHGWRPLQLPL]LQJUHOLDQFHRQ6WDWHDQGRU)HGHUDOUHYHQXHVWRIXQGFRUHVHUYLFHVLong–Term Financial Planning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
vILQDOL]HWKHGUDIWRIWKH)LYH<HDU&DSLWDO,PSURYHPHQW3URJUDP7KLVGUDIWLVGLVFXVVHGDWD&LW\&RXQFLOEXGJHWPHHWLQJW\SLFDOO\KHOGLQ1RYHPEHU)LYH\HDUIXQGEDODQFHIRUHFDVWVDUHSUHSDUHGIRUPDMRUIXQGVRIWKH&LW\HDFK\HDUDVSDUWRIWKHEXGJHWGHYHORSPHQWSURFHVVWRDVVLVWWKH&LW\LQLGHQWLI\LQJEXGJHWFKDOOHQJHVRQWKHKRUL]RQDQGHQVXUHWKDWDSURDFWLYHDSSURDFKLVWDNHQWRDGGUHVVLQJWKHVHFKDOOHQJHVPension Benefits. (VFDODWLQJ FRVWV IRU HPSOR\HH SHQVLRQ EHQHILWV ZLOO FRQWLQXH WR SRVH ILQDQFLDOFKDOOHQJHVWRWKH&LW\6ZRUQSROLFHDQGILUHSHUVRQQHOUHFHLYHUHWLUHPHQWDQGGLVDELOLW\EHQHILWVIURPWKH3ROLFH 3HQVLRQ )XQG DQG )LUHILJKWHUV¶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¶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¶SHQVLRQSODQV%\WKHHQGRIWKH,OOLQRLV*HQHUDO$VVHPEO\DSSURYHGSROLFHDQGILUHILJKWHUSHQVLRQUHIRUPOHJLVODWLRQHIIHFWLYH-DQXDU\7KHODZGRHVQRWDIIHFWWKHSHQVLRQVRIFXUUHQWO\HPSOR\HGSROLFHRIILFHUVDQGILUHILJKWHUVRQO\WKRVHKLUHGDIWHU-DQXDU\$OWKRXJKOLWWOHRIWKHFRVWVDYLQJVIURPERWKELOOVZLOOEHVHHQLPPHGLDWHO\LWGRHVSURYLGHWKH&LW\ORQJWHUPILQDQFLDOUHOLHI,PSOHPHQWDWLRQRI*$6%6WDWHPHQW1RFinancial Reporting for Pension Plans,IRU)LVFDO<HDUDQG 1R Accounting and Financial Reporting for Pensions IRU )LVFDO <HDU KDV UHVXOWHG LQVLJQLILFDQWFKDQJHVWRWKHUHSRUWLQJRISHQVLRQREOLJDWLRQVLQWKH&LW\¶VILQDQFLDOVWDWHPHQWV2YHUWKHSDVWIHZ\HDUVWKH&LW\KDVPDGHDGMXVWPHQWVWRWKHPRUWDOLW\WDEOHDQGLQWHUHVWUDWHDVVXPSWLRQVIRULWVSROLFHDQGILUHSHQVLRQIXQGDFWXDULDOYDOXDWLRQV7KHVHFKDQJHVKDYHUHGXFHGWKHIXQGHGUDWLREXWDUHLQWHQGHGWRSXWWKH&LW\LQDQHYHQVWURQJHUSRVLWLRQJRLQJIRUZDUG7KHVHFKDQJHVDUHLQDGGLWLRQWRKLVWRULFDOO\RYHUIXQGLQJWKHDQQXDOSHQVLRQFRVWFRPSDUHGWRPLQLPXPUHTXLUHPHQWVSHU6WDWH6WDWXWHV$GGLWLRQDOLQIRUPDWLRQRQWKH&LW\¶VSHQVLRQREOLJDWLRQVDVZHOODVRWKHUSRVWHPSOR\PHQWEHQHILWVPD\EHIRXQGLQ1RWH,9RIWKHILQDQFLDOVWDWHPHQWVDVZHOODVLQWKH5HTXLUHG6XSSOHPHQWDU\,QIRUPDWLRQMajor Initiatives7KH&LW\LVFRPPLWWHGWRPDLQWDLQLQJWKHTXDOLW\RIOLIHDQGWKHSUHVHUYDWLRQRIWKHFKDUDFWHUDQGKHULWDJHRI/DNH)RUHVW7KH&LW\PXVWFRQWLQXHWRDGKHUHWRLWVSUXGHQWILQDQFLDOPDQDJHPHQWSUDFWLFHVDQGUHPDLQIRFXVHGRQVXVWDLQLQJORQJWHUPILQDQFLDOVWDELOLW\)RU)<WKHPRVWVLJQLILFDQWLQLWLDWLYHVZHUHDVIROORZV • ,Q-DQXDU\WKH&LW\&RXQFLODSSURYHGRUGLQDQFHVDGRSWLQJD7D[,QFUHPHQW)LQDQFLQJ 7,) 'LVWULFWRQDDFUHVLWHDWWKHQRUWKHQGRIWKH&RPPHUFLDO%XVLQHVV'LVWULFW7KLVLVWKHIRUPHUVLWHRIWKH&LW\¶VPXQLFLSDOVHUYLFHVFHQWHUDQGKDVORQJEHHQDIRFXVRIUHGHYHORSPHQWIRUWKH&LW\,Q)<WKH&LW\FRPSOHWHGUHTXLUHGGHPROLWLRQRIH[LVWLQJVWUXFWXUHVDQGUHPHGLDWLRQRIWKHVLWH,Q$SULOWKLVHIIRUWWRRNDPDMRUVWHSIRUZDUGZLWKWKH&LW\&RXQFLO¶VDSSURYDORIDvi)LUVW $PHQGPHQW WR WKH 3XUFKDVH6DOH $JUHHPHQW UHGHYHORSPHQW DJUHHPHQW ILQDO SODW RIVXEGLYLVLRQDQG)LQDO'HYHORSPHQW3ODQQHG'HYHORSPHQW2UGLQDQFH7 KHSODQLQFOXGHVWRWDOXQLWV±VLQJOHIDPLO\KRPHVFRQGRPLQLXPXQLWVDQGDSDUWPHQWV,Q)<WKH&LW\DQGGHYHORSHUZLOOFORVHRQWKHVDOHRIWKHSURSHUW\DQGFRQVWUXFWLRQZLOOEHJLQ• 6LJQLILFDQW LPSURYHPHQWV ZHUH PDGH HOVHZKHUH LQ WKH &LW\¶V &RPPHUFLDO %XVLQHVV 'LVWULFWLQFOXGLQJD PLOOLRQ LQYHVWPHQWLQ0DUNHW6TXDUH E\ LWVQHZ RZQHU) ROORZLQJ D \HDUORQJH[WHQVLYHUHQRYDWLRQDQGUHVWRUDWLRQKLVWRULF'HHU3DWK,QQUHRSHQHGLQ'HFHPEHU7KH&LW\ FRQWLQXHG UHVWRUDWLRQ RI WKH &LW\¶V KLVWRULF WUDLQ VWDWLRQ ZKLFK LV ODUJHO\ IXQGHG E\ JUDQWUHYHQXHV• &RQVWUXFWLRQ RI DQH Z PLOOLRQ UHSODFHPHQW KRVSLWDO RQ WKHFDPSXVRIWKHH[LVWLQJ1RUWKZHVWHUQ/DNH)RUHVW+RVSLWDOLVXQGHUZD\&LW\DQG+RVSLWDOUHSUHVHQWDWLYHVKDYHZRUNHGFORVHO\RQWKHSODQQLQJDQGFRQVWUXFWLRQ7KHQHZKRVSLWDOLVVFKHGXOHGWRRSHQ)DOO• ,Q)HEUXDU\WKH&LW\&RXQFLODXWKRUL]HGILQDOGHVLJQRIZDWHUSODQWLPSURYHPHQWVWKDWZLOOLQFUHDVHWKHSODQWFDSDFLW\WR0*' PLOOLRQJDOORQVSHUGD\ DQGXWLOL]H*(PHPEUDQHILOWHUV,WLVDQWLFLSDWHGWKDWGHVLJQZLOOEHFRPSOHWHGDQGELGGLQJZLOORFFXULQ)<ZLWKFRQVWUXFWLRQWREHJLQLQ)<• &DSLWDOH[SHQGLWXUHVLQ)LVFDO<HDULQFOXGHG VWUHHWLPSURYHPHQWV PLOOLRQ 5HJHQF\/DQH 6DQLWDU\ 6HZHU V\VWHP ± 66$ (PHUDOG $VK %RUHUWUHH UHPRYDO DQGUHSODFHPHQW DQG:DWHU6DQLWDU\6HZHUFDSLWDOLPSURYHPHQWV PLOOLRQ Awards and Acknowledgements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
VUHTXLUHPHQWVDQGZHDUHVXEPLWWLQJLWWRWKH*)2$WRGHWHUPLQHLWVHOLJLELOLW\IRUDQRWKHUFHUWLILFDWH:HZRXOGOLNHWRH[SUHVVRXUDSSUHFLDWLRQWRDOOPHPEHUVRIWKH)LQDQFH'HSDUWPHQWZKRDVVLVWHGDQGFRQWULEXWHGWRWKHSUHSDUDWLRQRIWKLVUHSRUW:HZRXOGDOVROLNHWRWKDQNWKH0D\RUPHPEHUVRIWKH&LW\&RXQFLO DQGW KH $XGLW &RPPLWWHH IRU WKHLU LQWHUHVW DQG VXSSRUWLQ SODQQLQJ DQG FRQGXFWLQJ WKH ILQDQFLDORSHUDWLRQVRIWKH&LW\LQDUHVSRQVLEOHDQGSURJUHVVLYHPDQQHU5HVSHFWIXOO\VXEPLWWHG5REHUW5.LHO\-U(OL]DEHWK$+ROOHE&LW\0DQDJHU)LQDQFH'LUHFWRU120
viiVoters and Residents of The City of Lake Forest Mayor and City Council Office of the City Manager CROYA Community Development Finance / IT Fire Human Resources Parks / Recreation Police Public Works Senior Center APPOINTED BOARDS, COMMISSION, COMMITTEES Audit Committee Board of Fire and Police Commissioners Board of Trustees – Firefighter Pension Fund Board of Trustees – Police Pension Fund Building Review Board Cemetery Commission Construction Codes Commission CROYA Board Elawa Farm Commission Historic Preservation Commission Housing Trust Fund Board Legal Committee Library Board Parks and Recreation Board Plan Commission Senior Resources Commission Zoning Board of Appeals ix121
viiiList of Principal Officials Year Ended April 30, 2016 LEGISLATIVE City Council Donald P. Schoenheider, Mayor Prue R. Beidler Catherine A. Waldeck George A. Pandaleon Timothy Newman Stanford Tack Jack Reisenberg Michael R. Adelman Michelle Moreno AUDIT COMMITTEE Don O’Callaghan, Chairman Amy Krebs Andrew Logan William McFadden Dean Stieber Donald P. Schoenheider, Mayor (ex-officio) George Pandaleon, Finance Committee Chairman (ex-officio) EXECUTIVE Robert R. Kiely Jr., City Manager DEPARTMENT OF FINANCE Elizabeth Holleb, Director of Finance Diane Hall, Assistant Finance Director 122
123
CITY OF LAKE FOREST, ILLINOISMANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)APRIL 30, 20163DJH7KH &LW\ RI /DNH )RUHVW¶V WKH&LW\ PDQDJHPHQW¶V GLVFXVVLRQ DQG DQDO\VLV LV GHVLJQHG WR DVVLVW WKHUHDGHU LQ IRFXVLQJ RQV LJQLILFDQW ILQDQFLDO LVVXHV SURYLGH DQR YHUYLHZ RI WKH &LW\¶V ILQDQFLDO DFWLYLW\ LGHQWLI\ FKDQJHV LQ WKH &LW\¶V ILQDQFLDO SRVLWLRQ LWV DELOLW\ WR DGGUHVV WKH QH[W DQGV XEVHTXHQW \HDU¶VFKDOOHQJHV LGHQWLI\DQ\PDWHULDOGHYLDWLRQVIURPWKHILQDQFLDOSODQ WKHDSSURYHGEXGJHW DQG LGHQWLI\LQGLYLGXDOIXQGLVVXHVRUFRQFHUQV6LQFH WKH 0DQDJHPHQW¶V 'LVFXVVLRQ DQG $QDO\VLV 0' $ LV GHVLJQHG WR IRFXV RQ WKH FXUUHQW \HDU¶VDFWLYLWLHVUHVXOWLQJFKDQJHVDQGFXUUHQWO\NQRZQIDFWVSOHDVHUHDGLWLQFRQMXQFWLRQZLWKWKH7UDQVPLWWDO/HWWHU EHJLQQLQJRQSDJHL DQGWKH&LW\¶VILQDQFLDOVWDWHPHQWV EHJLQQLQJRQSDJH Financial Highlights• 7KH&LW\¶VQHWSRVLWLRQLQFUHDVHGE\ PLOOLRQGXULQJWKHILVFDO\HDUHQGLQJ$SULO )< 7KHJRYHUQPHQWDOQHWSRVLWLRQLQFUHDVHGE\PLOOLRQDQGWKHEXVLQHVVW\SHDFWLYLWLHVQHWSRVLWLRQLQFUHDVHGE\PLOOLRQ• 7KH JRYHUQPHQWDO DFWLYLWLHV UHYHQXH LQFUHDVHG E\ PLOOLRQ GXH SULPDULO\ WR SHUPLW IHHVUHODWHGWRFRQVWUXFWLRQRIDQHZKRVSLWDO7KHH[SHQVHVGHFUHDVHGE\PLOOLRQ GXHSULPDULO\WRDGMXVWPHQWVUHODWHGWRSHQVLRQVDQGUHGXFHGFDSLWDOH[SHQVHV7UDQVIHUVLQFUHDVHGE\PLOOLRQUHODWHGWRDFDSLWDOFRQWULEXWLRQIURPWKH&DSLWDO,PSURYHPHQWV)XQGWRWKH:DWHUDQG6HZHU)XQG• 7KHEXVLQHVVW\SHDFWLYLWLHVUHYHQXHGHFUHDVHGE\PLOOLRQ DQGH[SHQVHVGHFUHDVHGE\ PLOOLRQ GXH WR D RQHWLPH FRQWULEXWLRQ IRU DZ DWHU PDLQSURMHFW DQG SXUFKDVH RI DGGLWLRQDOPHPEUDQHVIRUWKHZDWHU WUHDWPHQWSODQWERWKRFFXUULQJLQ)<7KHWUDQVIHUVLQFUHDVHGE\PLOOLRQDVQRWHGDERYH• 7KHWRWDOFRVWRIDOO&LW\SURJUDPVGHFUHDVHGIURPPLOOLRQLQ)<WRPLOOLRQLQ)<±DGHFUHDVH RI ODUJHO\ DWWULEXWDEOH WR UHGXFHG FDSLWDO H[SHQVHV QRW PHHWLQJ WKH WKUHVKROG IRUFDSLWDOL]DWLRQDVZHOODVDGMXVWPHQWVUHODWHGWRSHQVLRQVUSING THE FINANCIAL SECTION OF THECOMPREHENSIVE ANNUAL REPORT7KHILQDQFLDOVWDWHPHQW¶VIRFXVLVRQERWKWKH&LW\DVDZKROH JRYHUQPHQWZLGH DQGRQWKHPDMRULQGLYLGXDOIXQGV%RWKSHUVSHFWLYHV JRYHUQPHQWZLGHDQGPDMRUIXQG DOORZWKHXVHUWRDGGUHVVUHOHYDQWTXHVWLRQVEURDGHQ D EDVLV IRU FRPSDULVRQ \HDU WR \HDU RU JRYHUQPHQW WR JRYHUQPHQW DQG HQKDQFH WKH &LW\¶VDFFRXQWDELOLW\Government-Wide Financial Statements7KHJRYHUQPHQWZLGHILQDQFLDOVWDWHPHQWV VHHSDJHV DUHGHVLJQHGWREHFRUSRUDWHOLNHLQWKDWDOOJRYHUQPHQWDODQGEXVLQHVVW\SHDFWLYLWLHVDUHFRQVROLGDWHGLQWRFROXPQVZKLFKDGGWRDWRWDOIRUWKH3ULPDU\*RYHUQPHQW7KHIRFXVRIWKH6WDWHPHQWRI1HW3RVLWLRQ WKH8QUHVWULFWHG1HW3RVLWLRQ LVGHVLJQHGWREHVLPLODUWRERWWRPOLQHUHVXOWVIRUWKH&LW\DQGLWVJRYHUQPHQWDODQGEXVLQHVVW\SHDFWLYLWLHV7KLVVWDWHPHQWFRPELQHVDQGFRQVROLGDWHVJRYHUQPHQWDOIXQG¶VFXUUHQWILQDQFLDOUHVRXUFHV VKRUWWHUPVSHQGDEOHUHVRXUFHV ZLWKFDSLWDODVVHWVDQGORQJWHUPREOLJDWLRQVXVLQJWKHDFFUXDOEDVLVRIDFFRXQWLQJDQGHFRQRPLFUHVRXUFHVPHDVXUHPHQWIRFXV7KH6WDWHPHQWRI$FWLYLWLHV VHHSDJH LVIRFXVHGRQERWKWKHJURVVDQGQHWFRVWRIYDULRXVDFWLYLWLHV LQFOXGLQJJRYHUQPHQWDODQGEXVLQHVVW\SH ZKLFKDUHVXSSRUWHGE\WKHJRYHUQPHQW¶VJHQHUDOWD[HVDQGRWKHU UHVRXUFHV 7KLV LV LQWHQGHG WR VXPPDUL]H DQG VLPSOLI\ WKH XVHU¶V DQDO\VLV RI WKH FRVW RI YDULRXVJRYHUQPHQWDOVHUYLFHVDQGRUVXEVLG\WRYDULRXVEXVLQHVVW\SHDFWLYLWLHV7KH *RYHUQPHQWDO $FWLYLWLHV UHIOHFW WKH &LW\¶V EDVLF VHUYLFHVLQFOXGLQJ KLJKZD\V DQG VWUHHWV VDQLWDWLRQFXOWXUHDQGUHFUHDWLRQSXEOLFVDIHW\DQGJHQHUDOJRYHUQPHQW3URSHUW\WD[HVVDOHVWD[LQFRPHWD[HVDQGORFDOXWLOLW\WD[HVILQDQFHWKHPDMRULW\RIWKHVHVHUYLFHV7KH%XVLQHVVW\SH$FWLYLWLHVUHIOHFWSULYDWHVHFWRUW\SHRSHUDWLRQV :DWHUZRUNVDQG6HZHUDJH*ROI ZKHUHWKHIHHIRUVHUYLFHLVLQWHQGHGWRFRYHUDOORUPRVWRIWKHFRVWVRIRSHUDWLRQLQFOXGLQJGHSUHFLDWLRQCITY OF LAKE FOREST, ILLINOISMANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)APRIL 30, 20163DJHFund Financial Statements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¶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nfrastructure Assets+LVWRULFDOO\DJRYHUQPHQW¶VODUJHVWJURXSRIDVVHWV LQIUDVWUXFWXUH±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±DUHFXUULQJFRVWWKDWGRHVQRWH[WHQGWKHURDG¶VRULJLQDOXVHIXOOLIHRUH[SDQGLWVFDSDFLW\±WKHFRVWRIWKHSURMHFWZLOOEHH[SHQVHG$Q³RYHUOD\´RIDURDGZLOOEHFRQVLGHUHGPDLQWHQDQFHZKHUHDVD³UHEXLOG´RIDURDGZLOOEHFDSLWDOL]HG124
CITY OF LAKE FOREST, ILLINOISMANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)APRIL 30, 20163DJHGOVERNMENT-WIDE STATEMENTStatement of Net Position7KH&LW\¶VFRPELQHGQHWSRVLWLRQLQFUHDVHGE\ PLOOLRQIRU)<±IURPPLOOLRQ )<UHVWDWHG WR PLOOLRQ 7KH DQDO\VLV IROORZLQJ ZLOO ORRN DW QHW SRVLWLRQ DQG QHW H[SHQVHV RI JRYHUQPHQWDO DQGEXVLQHVVW\SH DFWLYLWLHV VHSDUDWHO\ 7KH WRWDO QHW SRVLWLRQ IRU WKH JRYHUQPHQWDO DFWLYLWLHV LQFUHDVHG E\PLOOLRQ±IURP PLOOLRQWRPLOOLRQ7KHEXVLQHVVW\SHDFWLYLWLHVQHWSRVLWLRQLQFUHDVHGE\PLOOLRQ±IURPPLOOLRQWR PLOOLRQ7DEOHUHIOHFWVWKHFRQGHQVHG6WDWHPHQWRI1HW3RVLWLRQFRPSDUHGWR)<7DEOHZLOOIRFXVRQWKHFKDQJHVLQQHWSRVLWLRQRIWKHJRYHUQPHQWDODQGEXVLQHVVW\SHDFWLYLWLHV2015 2016 2015 2016 2015 2016&XUUHQWDQG2WKHU$VVHWV &DSLWDO$VVHWV Total Assets Deferred Outflows /RQJ7HUP/LDELOLWLHV 2WKHU/LDELOLWLHV Total Liabilities Deferred Inflows Net Position:1HW,QYHVWPHQWLQ &DSLWDO$VVHWV 5HVWULFWHG 8QUHVWULFWHG Total Net Position Statement of Net PositionAs of April 30, 2015 (restated) and 2016(in millions)GovernmentalActivitiesBusiness-TypeActivitiesTotal PrimaryGovernment)RUPRUHGHWDLOHGLQIRUPDWLRQVHHWKH6WDWHPHQWRI1HW3RVLWLRQ SDJH Normal Impacts7KHUHDUHVL[EDVLF QRUPDO WUDQVDFWLRQVWKDWZLOODIIHFWWKHFRPSDUDELOLW\RIWKH6WDWHPHQWRI1HW3RVLWLRQVXPPDU\SUHVHQWDWLRQNet Results of ActivitiesZLOOLPSDFW LQFUHDVHGHFUHDVH FXUUHQWDVVHWVDQGXQUHVWULFWHGQHWSRVLWLRQBorrowing for CapitalZLOOLQFUHDVHFXUUHQWDVVHWVDQGORQJWHUPGHEWSpending Borrowed Proceeds on New CapitalZLOOUHGXFHFXUUHQWDVVHWVDQGLQFUHDVHFDSLWDODVVHWV7KHUHLVDVHFRQGLPSDFWDQLQFUHDVHLQFDSLWDODVVHWVDQGDQLQFUHDVHLQUHODWHGQHWGHEWZKLFKZLOOQRWFKDQJHWKHQHWLQYHVWPHQWLQFDSLWDODVVHWVSpending of Non-borrowed Current Assets on New CapitalZLOO D UHGXFHFXUUHQWDVVHWVDQGLQFUHDVHFDSLWDODVVHWVDQG E ZLOOUHGXFHXQUHVWULFWHGQHWSRVLWLRQDQGLQFUHDVHQHWLQYHVWPHQWLQFDSLWDODVVHWVCITY OF LAKE FOREST, ILLINOISMANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)APRIL 30, 20163DJHPrincipal Payment on DebtZLOO D UHGXFH FXUUHQW DVVHWV DQG UHGXFH ORQJWHUP GHEW DQG E UHGXFHXQUHVWULFWHGQHWSRVLWLRQDQGLQFUHDVHQHWLQYHVWPHQWLQFDSLWDODVVHWVReduction of Capital Assets through DepreciationZLOOUHGXFHFDSLWDODVVHWVDQGQHW LQYHVWPHQWLQFDSLWDODVVHWVCurrent Year Impacts7KH&LW\¶V PLOOLRQLQFUHDVHLQFRPELQHGQHWSRVLWLRQ ZKLFKLVWKH&LW\¶VERWWRPOLQH ZDVWKHUHVXOWRIWKHJRYHUQPHQWDODFWLYLWLHVQHWSRVLWLRQLQFUHDVLQJE\PLOOLRQDQGWKHEXVLQHVVW\SHDFWLYLWLHVQHWSRVLWLRQLQFUHDVLQJE\PLOOLRQ7KHJRYHUQPHQWDODFWLYLWLHVWRWDODVVHWVLQFUHDVHGE\ PLOOLRQ DQGWKHJRYHUQPHQWDODFWLYLWLHVWRWDO OLDELOLWLHV LQFUHDVHG E\ PLOOLRQ :LWK WKH LPSOHPHQWDWLRQ RI *$6% 6WDWHPHQW 1R Accounting and Financial Reporting for Pensions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¶VGHEWVHUYLFHSOXVDVDUHVHUYHLQLWVZDWHUIXQG7KHDQQXDORSHUDWLQJFRVWIRUWKLVSURJUDPLVDSSUR[LPDWHO\PLOOLRQSHU\HDUDQGLQWHUHVWH[SHQVHRQERQGVLVPLOOLRQChanges in Net Position7KH&LW\¶VFRPELQHGFKDQJHLQQHWSRVLWLRQZDVDQLQFUHDVHRI PLOOLRQLQ)<7KH&LW\¶VWRWDOUHYHQXHVLQFUHDVHGE\PLOOLRQSULPDULO\GULYHQE\RQHWLPHSHUPLWIHHV7KH&LW\¶VFRVWRIDOOSURJUDPVGHFUHDVHGE\PLOOLRQODUJHO\DWWULEXWDEOHWRUHGXFHGFDSLWDOH[SHQVHVDQGDGMXVWPHQWVUHODWHGWRSHQVLRQV7KHFKDUWRQWKHIROORZLQJSDJHFRPSDUHVWKHUHYHQXHDQGH[SHQVHVIRUWKHFXUUHQWDQGSUHYLRXVILVFDO\HDU125
CITY OF LAKE FOREST, ILLINOISMANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)APRIL 30, 20163DJH2015 2016 2015 2016 2015 2016REVENUE3URJUDP5HYHQXH &KDUJHVIRU6HUYLFHV *UDQWVDQG&RQWULEXWLRQV2SHUDWLQJ &DSLWDO *HQHUDO5HYHQXH3URSHUW\7D[HV 2WKHU7D[HV ,QWHUJRYHUQPHQWDO7D[HV ,QWHUHVW5HYHQXH 2WKHU Total Revenue EXPENSES*RYHUQPHQWDO$FWLYLWLHV*HQHUDO*RYHUQPHQW +LJKZD\VDQG6WUHHWV 6DQLWDWLRQ &XOWXUHDQG5HFUHDWLRQ 3XEOLF6DIHW\ ,QWHUHVW %XVLQHVV7\SH$FWLYLWLHV:DWHUDQG6HZHU *ROI Total Expenses Excess before Transfers 7UDQVIHUV,Q RXW &KDQJHLQ1HW3RVLWLRQ Net Position - Beginning* Net Position - Ending ActivitiesBusiness-TypeActivitiesTotal PrimaryGovernmentTable 2Changes in Net PositionFor the Fiscal Year Ended April 30, 2015 and 2016(in millions)Governmental
%HJLQQLQJ1HW3RVLWLRQUHVWDWHG 7KHHIIHFWRIWKHLPSOHPHQWDWLRQRI*$6%RQ)<KDVEHHQIXOO\DGMXVWHG WR EHJLQQLQJ QHW SRVLWLRQ ,I DFWXDULDO YDOXDWLRQV ZHUHDYDLODEOHIRUWKH\HDUHQGHGDGMXVWPHQWVWRH[SHQVHDPRXQWVPD\KDYHEHHQQHFHVVDU\WRIXOO\UHVWDWH)<CITY OF LAKE FOREST, ILLINOISMANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)APRIL 30, 20163DJH Property Tax 49% Sales Tax 6% Income Tax 5% Utility Tax 8% Real Estate Transfer Tax 2% Charges for Services 24% Grants 4% Other 1% Inv Income 1% FY2015 Governmental Activities Revenue Property Tax 48% Sales Tax 6% Income Tax 4% Utility Tax 7% Real Estate Transfer Tax 3% Charges for Services 28% Grants 3% Other 1% Inv Income 0% FY2016 Governmental Activities Revenue 126
CITY OF LAKE FOREST, ILLINOISMANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)APRIL 30, 2016 3DJHGeneral Government 25% Highways and Streets 17% Sanitation 5% Culture and Recreation 20% Public Safety 30% Interest on LT Debt 3% FY2015 Governmental Activities Expenses General Government 24% Highways and Streets 19% Sanitation 4% Culture and Recreation 17% Public Safety 33% Interest on LT Debt 3% FY2016 Governmental Activities Expenses CITY OF LAKE FOREST, ILLINOISMANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)APRIL 30, 2016 3DJHNormal Impacts7KHUHDUHHLJKWEDVLFLPSDFWVRQUHYHQXHVDQGH[SHQVHVDVUHIOHFWHGEHORZRevenuesEconomic ConditionFDQ UHIOHFW D GHFOLQLQJ VWDEOH RU JURZLQJ HFRQRPLF HQYLURQPHQW DQG KDV DVXEVWDQWLDOLPSDFWRQVWDWHLQFRPHVDOHVDQGXWLOLW\WD[UHYHQXHDVZHOODVSXEOLFVSHQGLQJKDELWVIRUEXLOGLQJSHUPLWVHOHFWLYHXVHUIHHVDQGYROXPHVRIFRQVXPSWLRQIncrease/Decrease in City approved rates±ZKLOHFHUWDLQWD[UDWHVDUHVHWE\VWDWXWHWKH&LW\&RXQFLOKDVDXWKRULW\WRLPSRVHDQGSHULRGLFDOO\LQFUHDVHGHFUHDVHUDWHV ZDWHUVHZHUEXLOGLQJIHHVHWF Changing Patterns in Intergovernmental and Grant Revenue (both recurring and non-recurring)±FHUWDLQUHFXUULQJUHYHQXHV VWDWHVKDUHGUHYHQXHVHWF PD\H[SHULHQFHVLJQLILFDQWFKDQJHVSHULRGLFDOO\ZKLOHQRQUHFXUULQJ RURQHWLPH JUDQWVDUHOHVVSUHGLFWDEOHDQGRIWHQGLVWRUWLQJLQWKHLULPSDFWRQ\HDUWR\HDUFRPSDULVRQVMarket Impacts on Investment income± LQYHVWPHQW LQFRPH RQ WKH &LW\¶V LQYHVWPHQW SRUWIROLR PD\IOXFWXDWHEDVHGRQPDUNHWFRQGLWLRQVExpensesIntroduction of New Programs±ZLWKLQWKHIXQFWLRQDOH[SHQVHFDWHJRULHV 3XEOLF6DIHW\+LJKZD\VDQG6WUHHWV *HQHUDO *RYHUQPHQW HWF LQGLYLGXDO SURJUDPV PD\ EHDGGHG RU GHOHWHG WR PHHW FKDQJLQJFRPPXQLW\QHHGVIncrease/Decrease in Authorized Personnel±FKDQJHVLQVHUYLFHGHPDQGPD\FDXVHWKH&LW\&RXQFLOWRLQFUHDVHGHFUHDVHDXWKRUL]HGVWDIILQJ6WDIILQJFRVWV VDODU\DQGUHODWHGEHQHILWV UHSUHVHQWQHDUO\RIWKH&LW\¶VJHQHUDOIXQGRSHUDWLQJFRVWVSalary Increases (annual adjustments and merit)±WKHDELOLW\WRDWWUDFWDQGUHWDLQKXPDQDQGLQWHOOHFWXDOUHVRXUFHVUHTXLUHVWKH&LW\WRVWULYHWRDSSURDFKDFRPSHWLWLYHVDODU\UDQJHSRVLWLRQLQWKHPDUNHWSODFHInflation±ZKLOHRYHUDOOLQIODWLRQDSSHDUVWREHUHDVRQDEO\PRGHVWWKH&LW\LVDPDMRUFRQVXPHURIFHUWDLQFRPPRGLWLHV VXFK DV VXSSOLHV IXHOV DQG SDUWV 6RPH IXQFWLRQV PD\ H[SHULHQFH XQXVXDO FRPPRGLW\VSHFLILFLQFUHDVHVCurrent Year ImpactsGovernmental ActivitiesRevenue)RUWKHILVFDO \HDUHQGHG $SULOUHYHQXHVIURPJRYHUQPHQWDODFWLYLWLHVWRWDOHG PLOOLRQLQFUHDVLQJPLOOLRQFRPSDUHGWR)<7KHSULPDU\FKDQJHRFFXUUHGLQ&KDUJHVIRU6HUYLFHVXS P ODUJHO\ GXH WR SHUPLW IHHV UHODWHG WR FRQVWUXFWLRQ RI DQHZKRVSLWDO3URSHUW\WD[UHYHQXHLQFUHDVHGPLOOLRQ RWKHUWD[HVGHFOLQHGPLOOLRQSULPDULO\LQXWLOLW\WD[HVLQWHUJRYHUQPHQWDOUHYHQXHZDVGRZQPLOOLRQDQGLQWHUHVWUHYHQXHZDVGRZQPLOOLRQGXHWRLQYHVWPHQWORVVHVLQWKH&HPHWHU\ )XQG 3URSHUW\ WD[ UHYHQXH FRQWLQXHV WR EH WKH &LW\¶V VLQJOH ODUJHVW UHYHQXH VRXUFHFRQWULEXWLQJPLOOLRQ RIJRYHUQPHQWDODFWLYLWLHVUHYHQXH127
CITY OF LAKE FOREST, ILLINOISMANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)APRIL 30, 2016 3DJH3URSHUW\WD[UHYHQXHVFRPELQHGZLWKVDOHVWD[WKHORFDOXWLOLW\WD[VKDUHGVWDWHLQFRPHWD[DQGUHDOHVWDWH WUDQVIHU WD[ UHYHQXHV WRWDO PLOOLRQ DQG UHSUHVHQW RI WKH WRWDO JRYHUQPHQWDO DFWLYLWLHVUHYHQXH7KHUHDOHVWDWHWUDQVIHUWD[EHFDPHHIIHFWLYH-XO\ZLWKDYRWHUDSSURYDOYLDUHIHUHQGXP7KHWD[LVLPSRVHGXSRQEX\HUVRIDQ\UHVLGHQWLDORUFRPPHUFLDOUHDOHVWDWHDWDUDWHRISHURIYDOXH7KHUHYHQXHLVXVHGVWULFWO\WRLPSURYHWKH&LW\¶VLQIUDVWUXFWXUH7KH&LW\¶VHTXDOL]HGDVVHVVHGYDOXDWLRQLQFUHDVHGFRPSDUHGWRWKHSULRU\HDUDQGWRWDOHG $OWKRXJKWKH&LW\EHFDPHDKRPHUXOHPXQLFLSDOLW\LQ1RYHPEHUWKH&LW\KDVKLVWRULFDOO\VHOILPSRVHGWKH,OOLQRLV3URSHUW\7D[([WHQVLRQ/LPLWDWLRQ/DZV 37(// RWKHUZLVHNQRZQDVWKHWD[FDSWRWKHH[WHQWSRVVLEOH7KHLQFUHDVHRIDSSUR[LPDWHO\RYHU)<LQSURSHUW\WD[HVZDVJHQHUDWHGDVDUHVXOWRIWKHWD[FDSDQGQHZFRQVWUXFWLRQ,QYHVWPHQW LQFRPH GHFUHDVHG E\ PLOOLRQ PLOOLRQ WR PLOOLRQ 7KH &LW\¶V VWUDWHJ\ IRULQYHVWLQJGLGQRWFKDQJHEXWLQYHVWPHQWORVVHVRFFXUUHGLQWKH&HPHWHU\)XQGGXHWRPDUNHWFRQGLWLRQVExpenses)RUWKHILVFDO\HDUHQGHG$SULOH[SHQVHVIRUJRYHUQPHQWDODFWLYLWLHVWRWDOHG PLOOLRQDGHFUHDVHRIPLOOLRQ 7KLVGHFUHDVHLVGXHLQODUJHSDUWWRSHQVLRQDGMXVWPHQWVDVZHOODVUHGXFHGFDSLWDOH[SHQVHV,QFUHDVHVLQSHUVRQQHOFRVWVZKLFKUHSUHVHQWQHDUO\RIWKH*HQHUDO)XQGRSHUDWLQJFRVWVFRQWLQXHWRRXWSDFHUHYHQXHJURZWK:LWKKLJKGHPDQGIRUVNLOOHGHPSOR\HHVLQERWK WKH SXEOLF DQG SULYDWH VHFWRUV LQ WKLV UHJLRQ LW LV LPSRUWDQW WKDW WKH &LW\ SURYLGH FRPSHWLWLYHFRPSHQVDWLRQOHYHOVIRURXUHPSOR\HHV7KH)<H[SHQVHVLQFOXGHGIXQGLQJIRUWKH&LW\¶VSHUIRUPDQFHEDVHGHPSOR\HHFRPSHQVDWLRQSDFNDJHSOXVDJHQHUDOVDODU\DGMXVWPHQW5HGXFWLRQVLQ*HQHUDO*RYHUQPHQWDQG3XEOLF6DIHW\ZHUHGXHSULPDULO\WRSHQVLRQDGMXVWPHQWVZKLOHWKH UHGXFWLRQ LQ &XOWXUH DQG 5HFUHDWLRQ ZDV GXH WR SHQVLRQ DGMXVWPHQWV DQGGHF UHDVHG FDSLWDOH[SHQVHVBusiness-type ActivitiesRevenue7RWDOUHYHQXHIRUWKHEXVLQHVVW\SHDFWLYLWLHVGHFUHDVHGE\PLOOLRQGXHWRDRQHWLPHFRQWULEXWLRQE\WKH$UP\IRUDZDWHUPDLQH[WHQVLRQLQ)<Expenses7KH&LW\¶VEXVLQHVVW\SHDFWLYLW\H[SHQVHVGHFUHDVHGE\PLOOLRQRUGXHSULPDULO\WRDSXUFKDVHRIDGGLWLRQDOZDWHUPHPEUDQHPRGXOHVIRUWKHZDWHUWUHDWPHQWSODQWLQ)<CITY OF LAKE FOREST, ILLINOISMANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)APRIL 30, 20163DJHFINANCIAL ANALYSIS OF THE CITY’S FUNDSGovernmental Funds$W$SULOWKHJRYHUQPHQWDOIXQGV DVSUHVHQWHGRQWKHEDODQFHVKHHWRQSDJH UHSRUWHGDFRPELQHGIXQGEDODQFHRIPLOOLRQZKLFKLVDPLOOLRQ LQFUHDVHIURPWKHEHJLQQLQJRIWKH\HDU PLOOLRQ 7KLV LQFUHDVH ZDV ODUJHO\ GULYHQ E\ WKH LVVXDQFH RI ERQGV WR IXQG FDSLWDOLPSURYHPHQWV2IWKHWRWDOIXQGEDODQFHRIPLOOLRQPLOOLRQLVQRWDYDLODEOHIRUFRQWLQXLQJ&LW\VHUYLFHVDQGFDSLWDOSURMHFWV7KHXQDVVLJQHGIXQGEDODQFHIRUWKHWRWDORIDOOJRYHUQPHQWDOIXQGVLVPLOOLRQZKLFKLVDPLOOLRQ LQFUHDVHRYHUWKHSULRU\HDUMajor Governmental Funds7KH *HQHUDO )XQG LV WKH &LW\¶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hange in Fund Balance Table 3*HQHUDO)XQG%XGJHWDU\+LJKOLJKWV LQPLOOLRQV $FWXDO*HQHUDO)XQGUHYHQXHVZHUHORZHUWKDQWKHRULJLQDOEXGJHWHGUHYHQXHVE\PLOOLRQGXULQJ)<7KH SULPDU\ YDULDQFHV UHVXOWHG IURP XWLOLW\ WD[ VDOHV WD[ DQGL QFRPH WD[ IDOOLQJ VKRUW RI SURMHFWLRQV$FWXDO*HQHUDO)XQGH[SHQGLWXUHVZHUHORZHUWKDQWKHRULJLQDODQGILQDOEXGJHWE\PLOOLRQ,WLVWKH128
CITY OF LAKE FOREST, ILLINOISMANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)APRIL 30, 2016 3DJH&LW\¶VSROLF\WRDGGZKLFKLVPLOOLRQRIFRQWLQJHQF\IXQGLQJWRWKHEXGJHWDSSURSULDWLRQ7KHFRQWLQJHQF\ DPRXQWLVRQO\IRUVSHFLILFXVHVDVGHWHUPLQHGE\ WKH&LW\&RXQFLODQGDS RUWLRQRIWKHFRQWLQJHQF\ZDVXVHGLQ)<IRUFDSLWDORXWOD\0RUHLQIRUPDWLRQFDQEHIRXQGRQWKHVFKHGXOHRIUHYHQXHVH[SHQGLWXUHVDQGFKDQJHVLQIXQGEDODQFH±EXGJHWDQGDFWXDORQSDJH7KH 3DUNV DQG5 HFUHDWLRQ )XQG DFFRXQWV IRU WKH SDUNV DQGU HFUHDWLRQ SURJUDPV 6HUYLFHV LQFOXGHIRUHVWU\ DQG SDUNV PDLQWHQDQFH RSHUDWLRQV DI LWQHVV FHQWHU GDQFH DFDGHP\ DQGDY DULHW\ RI RWKHULQGRRUDQGRXWGRRUSURJUDPV7KH)XQG%DODQFHRIWKH3DUNVDQG5HFUHDWLRQ)XQGLQFUHDVHGE\PLOOLRQIURPPLOOLRQWRPLOOLRQ7KH3DUNVDQG5HFUHDWLRQ)XQGUHYHQXHVDQGH[SHQGLWXUHVZHUH FRQVLVWHQW ZLWK WKH SULRU \HDU 7 RWDO RWKHU ILQDQFLQJ VRXUFHV XVHV LQFUHDVHG E\ PLOOLRQFRQWULEXWLQJWRDQHWFKDQJHLQIXQGEDODQFHRIFRPSDUHGWR IRUWKHSULRU\HDU7KH &DSLWDO ,PSURYHPHQWV )XQG LV UHSRUWHG DV D0DM RU )XQG IRU )< DQG LV XVHG WR DFFRXQW IRUUHYHQXHVXVHGWRIXQG&LW\EXLOGLQJDQGLQIUDVWUXFWXUHSURMHFWV)XQGEDODQFHRIWKLVIXQGLQFUHDVHGE\PLOOLRQWRPLOOLRQGXHWRDPLOOLRQERQGLVVXH&RPSDUHGWR)<UHYHQXHLQFUHDVHGE\PLOOLRQGXHWRLQFUHDVHVLQJUDQWUHDOHVWDWHWUDQVIHUWD[DQGKLJKLPSDFWWUDIILFIHHUHYHQXH7RWDOH[SHQGLWXUHVGHFUHDVHGE\PLOOLRQLQWKHFDSLWDORXWOD\FDWHJRU\7UDQVIHUVWRWKLVIXQGLQFUHDVHGE\PLOOLRQFRPSDUHGWR)<CAPITAL ASSETS /DQGDQG,PSURYHPHQWV ,QIUDVWUXFWXUH/DQG &RQVWUXFWLRQLQ3URJUHVV ,QIUDVWUXFWXUH %XLOGLQJV ,PSURYHPHQWV 0DFKLQHU\DQG(TXLSPHQW 6DQLWDU\6HZHUV 7RWDO Table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’S DISCUSSION AND ANALYSIS (UNAUDITED)APRIL 30, 20163DJH7KHIROORZLQJUHFRQFLOLDWLRQVXPPDUL]HVWKHFKDQJHVLQ&DSLWDO$VVHWVZKLFKDUHSUHVHQWHGLQGHWDLORQSDJHVRIWKH1RWHV*RYHUQPHQWDO %XVLQHVV7\SH$FWLYLWLHV $FWLYLWLHV 7RWDOBeginning Balance $GGLWLRQV'HSUHFLDEOH 1RQ'HSUHFLDEOH &RQVWUXFWLRQLQ3URJUHVV 5HWLUHPHQWV'HSUHFLDEOH 1RQ'HSUHFLDEOH &RQVWUXFWLRQLQ3URJUHVV 'HSUHFLDWLRQ 5HWLUHPHQWV Ending Balance 7DEOH&KDQJHLQ&DSLWDO$VVHWV LQPLOOLRQV Debt Outstanding7KH&LW\KDG PLOOLRQRIJHQHUDOREOLJDWLRQERQGVRXWVWDQGLQJDW$SULO2IWKLVDPRXQW PLOOLRQ ZHUH SD\DEOH IURP SURSHUW\ WD[HV DQG WKH UHPDLQGHU ZHUH VHOIVXSSRUWLQJ 7 KH &LW\DEDWHVWKHSURSHUW\WD[OHYLHVIRUWKHVHGHEWLVVXHVDQQXDOO\7KH&LW\¶VSHUFDSLWDGHEWUDWLRIRUDOOGLUHFWDQGRYHUODSSLQJGHEWZLWKRWKHUJRYHUQPHQWDOXQLWVZDVDQGLIVHOIVXSSRUWLQJGHEWLVH[FOXGHG7KH&LW\RSHUDWHGDVDKRPHUXOHFRPPXQLW\IRU)<7KH&LW\ZDVJUDQWHGKRPHUXOHVWDWXVYLDDUHIHUHQGXPKHOGRQ1RYHPEHU8QGHUKRPHUXOHDXWKRULW\WKH&LW\ZLOOQRWKDYHDOHJDOGHEWOLPLW)RUPRUHGHWDLOHGLQIRUPDWLRQRQORQJWHUPGHEWDFWLYLW\VHHSDJHV 7KH&LW\LVVXHG PLOOLRQLQJHQHUDOREOLJDWLRQERQGVLQ)<$VRI$SULOWKH&LW\¶VQHWSHQVLRQOLDELOLW\LVPLOOLRQDQLQFUHDVHRIPLOOLRQRYHUWKHUHVWDWHGEDODQFHDVRI$SULO$GGLWLRQDOLQIRUPDWLRQUHJDUGLQJWKHQHWSHQVLRQOLDELOLW\FDQEHIRXQGLQ1RWH,9129
CITY OF LAKE FOREST, ILLINOISMANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)APRIL 30, 2016 3DJHEconomic Factors8QHPSOR\PHQWOHYHOVLQ/DNH)RUHVWDUHZHOOEHORZWKHOHYHOVIRU/DNH&RXQW\DQGWKH6WDWHRI,OOLQRLV)RU FDOHQGDU \HDU WKH &LW\¶V DQQXDO DYHUDJH XQHPSOR\PHQWUDWH ZDV HVWLPDWHG WR EH FRPSDUHGWRIRU/DNH&RXQW\DQG IRUWKH6WDWHRI,OOLQRLV7KH&LW\PDLQWDLQVD$DDERQGUDWLQJIURP0RRG\¶V,QYHVWRUV6HUYLFHCONTACTING THE CITY’S FINANCIAL MANAGEMENT7KLVILQDQFLDOUHSRUWLVGHVLJQHGWRSURYLGHRXUFLWL]HQVFXVWRPHUVLQYHVWRUVDQGFUHGLWRUVZLWKDJHQHUDORYHUYLHZRIWKH&LW\¶VILQDQFHVDQGWRGHPRQVWUDWHWKH&LW\¶VDFFRXQWDELOLW\IRUWKHPRQH\LWUHFHLYHV4XHVWLRQVFRQFHUQLQJWKLVUHSRUWRUUHTXHVWVIRUDGGLWLRQDOILQDQFLDOLQIRUPDWLRQVKRXOGEHGLUHFWHGWR(OL]DEHWK+ROOHE)LQDQFH'LUHFWRU&LW\RI/DNH)RUHVW1)LHOG'ULYH/DNH)RUHVW,/BASIC FINANCIAL STATEMENTS130
CITY OF LAKE FORESTSTATEMENT OF NET POSITIONAs of April 30, 2016Primary GovernmentComponent UnitGovernmentalActivitiesBusiness-typeActivitiesTotalsLake ForestLibraryASSETSCash and cash equivalents $ 48,493,885 $ 7,710,882 $ 56,204,767 $ 2,351,899Investments 4,487,724 - 4,487,724 -Receivables (net)Property taxes 25,526,738 - 25,526,738 3,859,683Other taxes 343,289 - 343,289 5,141Accounts1,375,185 1,360,155 2,735,340-Loans905,054-905,054-Other1,370,9473,868 1,374,815-Due from other governments1,662,440- 1,662,440-Internal balances(545,075)545,075--Inventories429,43674,951504,387-Prepaid items698,88952,496751,38544,382Property held for resale380,000-380,000-Due from fiduciary funds18,382-18,382-Capital AssetsCapital assets not being depreciated113,144,182459,369 113,603,551219,000Capital assets being depreciated, net ofaccumulated depreciation101,614,44352,302,681153,917,1243,196,179Total Assets299,905,51962,509,477362,414,9969,676,284DEFERRED OUTFLOWS OF RESOURCESDeferred charge on refunding 68,701 500,109 568,810 -Deferred outflows of resources related to pensions10,576,993998,69411,575,6871,072,564Total Deferred Outflows of Resources10,645,6941,498,80312,144,4971,072,564LIABILITIESAccounts payable2,272,967243,742 2,516,70968,780Accrued liabilities1,697,24282,481 1,779,72395,679Accrued interest payable475,710150,471626,181-Deposits953,263-953,263-Unearned revenue1,839,321301,770 2,141,091-Noncurrent LiabilitiesDue within one year1,911,696 1,907,000 3,818,6965,000Due in more than one year92,345,95315,403,754107,749,7071,720,722Total Liabilities101,496,15218,089,218119,585,3701,890,181DEFERRED INFLOWS OF RESOURCESDeferred inflows of resources related to pensions 2,020,708 13,156 2,033,864 14,003Property taxes levied for future periods25,526,738-25,526,7383,859,683Total Deferred Inflows of Resources27,547,44613,15627,560,6023,873,686NET POSITIONNet investment in capital assets 181,481,470 37,582,505 219,063,975 3,415,179Restricted forCulture and recreation 3,608,444 - 3,608,444 -Highways and streets 811,846 - 811,846 -Public safety 547,826 - 547,826 -Cemetery purposes 5,143,285 - 5,143,285 -Affordable housing702,211-702,211-Capital projects6,491,161- 6,491,161-Debt service1,201,300- 1,201,300-Unrestricted(18,479,928)8,323,401(10,156,527)1,569,802TOTAL NET POSITION$ 181,507,615$ 45,905,906$ 227,413,521$ 4,984,981See accompanying notes to financial statements.Page 17 __________________________________ THIS PAGE INTENTIONALLY LEFT BLANK _________________________________ 131
CITY OF LAKE FORESTSTATEMENT OF ACTIVITIESFor the Year EndedApril 30, 2016Program RevenuesFunctions/ProgramsExpensesCharges forServicesOperatingGrants andContributionsCapital Grants andContributionsPrimary GovernmentGovernmental ActivitiesGeneral government $ 11,675,363 $ 8,191,440 $ 241,616 $ 280,675Highway and streets 9,230,548 990,840 630,484 -Sanitation 2,208,326 697,435 - -Culture and recreation 8,463,259 3,257,796 483,620 -Public safety16,360,830 1,552,567 12,731-Interest on long-term debt1,293,742---Total Governmental Activities49,232,06814,690,0781,368,451280,675Business-type ActivitiesWaterworks and Sewerage 7,239,042 7,477,558 - -Deerpath Golf Course 1,868,2521,759,271--Total Business-type Activities9,107,2949,236,829--Total Primary Government$ 58,339,362$ 23,926,907$ 1,368,451$ 280,675Component UnitLake Forest Library$ 3,410,169$ 103,017$ 26,400$-General RevenuesTaxesPropertyHome rule salesUtilityReal estate transferOtherIntergovernmentalSalesIncomeTelecommunicationReplacementOtherInvestment incomeTotal General RevenuesTransfersTotal General Revenues and TransfersChange in net positionNET POSITION - Beginning of Year (as restated)NET POSITION - END OF YEARSee accompanying notes to financial statements.Page 18Net (Expenses) Revenues and Changes in Net PositionPrimary GovernmentComponent UnitGovernmentalActivitiesBusiness-typeActivitiesTotalsLake ForestLibrary$ (2,961,632) $- $ (2,961,632) $-(7,609,224)- (7,609,224)-(1,510,891)- (1,510,891)-(4,721,843)- (4,721,843)-(14,795,532)- (14,795,532)-(1,293,742)-(1,293,742)-(32,892,864)-(32,892,864)-- 238,516 238,516--(108,981)(108,981)--129,535129,535-(32,892,864)129,535(32,763,329)---- (3,280,752)25,006,224- 25,006,224 3,871,122658,551- 658,551-2,195,830- 2,195,830-1,288,175- 1,288,175-174,760- 174,760-2,230,755- 2,230,755-2,251,828- 2,251,828-1,355,661- 1,355,661-115,251- 115,251 27,435224,2206,033 230,253-145,32940,362185,69115,71735,646,58446,39535,692,9793,914,274(924,496)924,496--34,722,088970,89135,692,9793,914,2741,829,224 1,100,426 2,929,650 633,522179,678,39144,805,480224,483,8714,351,459$ 181,507,615$ 45,905,906$ 227,413,521$ 4,984,981See accompanying notes to financial statements.Page 19132
CITY OF LAKE FORESTBALANCE SHEETGOVERNMENTAL FUNDSAs of April 30, 2016GeneralParks andRecreationCapitalImprovementsNonmajorGovernmentalFundsTotalsASSETSCash and cash equivalents $ 23,746,130 $ 3,583,916 $ 6,807,936 $ 8,173,858 $ 42,311,840Investments - - - 4,487,724 4,487,724Property held for resale - - - 380,000 380,000Receivables (net)Property taxes 17,724,843 5,402,595 9,618 2,389,682 25,526,738Other taxes 343,289 - - - 343,289Accounts498,560 219,904 656,721- 1,375,185Loans905,054--- 905,054Other65,890-- 209,114 275,004Due from other governments1,612,648 5,698- 44,094 1,662,440Advances to other funds166,819--- 166,819Due from other funds- 9,642-- 9,642Due from fiduciary funds--- 18,382 18,382Inventories118,730--- 118,730Prepaid items81,621--28,539110,160TOTAL ASSETS$ 45,263,584$ 9,221,755$ 7,474,275$ 15,731,393$ 77,691,007LIABILITIES, DEFERRED INFLOWS OF RESOURCES,AND FUND BALANCESLiabilitiesAccounts payable$ 605,858 $ 260,569 $ 938,044 $ 70,258 $ 1,874,729Accrued liabilities781,834 157,266 4,828 18,274 962,202Deposits919,18875 22,000 12,000 953,263Unearned revenue1,449,668378,4948,624-1,836,786Total Liabilities3,756,548796,404973,496100,5325,626,980Deferred Inflows of ResourcesProperty taxes levied for a future period 17,724,843 5,402,595 9,618 2,389,682 25,526,738Unavailable revenues--520,37433,019553,393Total Deferred Inflows of Resources17,724,8435,402,595529,9922,422,70126,080,131Fund BalancesNonspendable 1,272,224 - - 408,539 1,680,763Restricted - 3,022,756 5,970,787 11,343,568 20,337,111Assigned--- 1,456,053 1,456,053Unassigned22,509,969---22,509,969Total Fund Balances23,782,1933,022,7565,970,78713,208,16045,983,896TOTAL LIABILITIES, DEFERREDINFLOWS OF RESOURCES, ANDFUND BALANCES$ 45,263,584$ 9,221,755$ 7,474,275$ 15,731,393$ 77,691,007See accompanying notes to financial statements.Page 20CITY OF LAKE FORESTRECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDSTO THE STATEMENT OF NET POSITIONAs of April 30, 2016Total Fund Balances - Governmental Funds$ 45,983,896Amounts reported for governmental activities in the statement of net position aredifferent because:Capital assets used in governmental funds are not financial resources and,therefore, are not reported in the funds. See Note III. C.214,758,625Less amount reported in internal service funds below.(18,523)Some receivables that are not currently available are reported as unavailablerevenues in the fund financial statements but are recognized as revenue whenearned in the government-wide statements.553,393Deferred outflows of resources related to pensions do not relate to current financialresources and are not reported in the governmental funds.10,576,993Less amount reported in internal service funds below.(343,367)Deferred inflows of resources related to pensions do not relate to current financialresources and are not reported in the governmental funds.(2,020,708)Less amount reported in internal service funds below.4,503Some liabilities, including long-term debt, are not due and payable in the currentperiod and therefore, are not reported in the funds.Bonds and notes payable(43,047,261)Compensated absences(1,730,744)Accrued interest(475,710)Unamortized debt discount 45,482Unamortized debt premium(165,507)Net pension liability(49,075,081)Other post-employment obligation(284,538)Less amount reported in internal service funds below.552,825A deferred charge on refunding represents a consumption of net position thatapplies to a future period and, therefore, is not reported in the funds.68,701The net position of the internal service funds are included in the governmentalactivities in the Statement of Net Position.6,124,636NET POSITION OF GOVERNMENTAL ACTIVITIES$ 181,507,615See accompanying notes to financial statements.Page 21133
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et Change in Fund Balances )81'%$/$1&(6%HJLQQLQJRI<HDU FUND BALANCES - END OF YEAR 6HHDFFRPSDQ\LQJQRWHVWRILQDQFLDOVWDWHPHQWV3DJHCITY OF LAKE FORESTRECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDSTO THE STATEMENT OF ACTIVITIESFor the Year EndedApril 30, 2016Net change in fund balances - total governmental funds$ 9,932,835 Amounts reported for governmental activities in the statement of activities are different because:Governmental funds report capital outlays as expenditures. However, in the statement of net positionthe cost of these assets is capitalized and they are depreciated over their estimated useful livesand reported as depreciation expense in the statement of activities.Capital outlay is reported as an expenditure in the fund financial statements but is capitalizedin the government-wide financial statements5,613,260Depreciation is reported in the government-wide financial statements(6,036,125)Proceeds from the sales of capital assets are recorded as revenue in the governmentalfunds, however the gain (loss) on sale is recorded in the statement of activities(35,711)Less amount reported in internal service funds below4,805Receivables not currently available are reported as revenue when collected or currently available inthe fund financial statements but are recognized as revenue when earned in the government-widefinancial statements.Unavailable revenue11,313Debt issued provides current financial resources to governmental funds, but issuing debt increaseslong-term liabilities in the statement of net position. Repayment of debt principal is an expenditurein the governmental funds, but the repayment reduces long-term liabilities in the statement of netposition.Debt issued(10,610,080)Principal repaid1,791,579Governmental funds report debt premiums and discounts as other financing sources (uses) orexpenditures. However, in the statement of net position, these are reported as additions to ordeductions from long-term debt. These are allocated over the period the debt is outstanding in thestatement of activities and are reported as interest expense.Debt discount(6,571)Debt premium(83,312)Some expenses in the statement of activities do not require the use of current financial resourcesand, therefore, are not reported as expenditures in the governmental funds. Compensated absences73,138Accrued interest on debt12,992Amortization of deferred charge on refunding (29,602)Net pension liability(7,219,018)Deferred outflows of resources related to pensions 10,151,426Deferred inflows of resources related to pensions (2,020,708)Other post-employment benefits(55,062)Less amount reported in internal service funds below (104,218)Internal service funds are used by management to charge self insurance costs to individual funds.The change in net position of the internal service fund reported with governmental activities438,283CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES$ 1,829,224See accompanying notes to financial statements.Page 23134
CITY OF LAKE FORESTSTATEMENT OF NET POSITIONPROPRIETARY FUNDSAs of April 30, 2016Business-type Activities - Enterprise FundsWaterworksand SewerageNonmajorEnterpriseFund - Deerpath GolfCourseTotalsGovernmentalActivities -InternalService FundsASSETSCurrent AssetsCash and cash equivalents $ 7,253,142 $ 457,740 $ 7,710,882 $ 6,182,045ReceivablesAccounts1,354,873 5,282 1,360,155-Other3,868- 3,868 1,095,943Inventories- 74,951 74,951 310,706Prepaid items-52,49652,496588,729Total Current Assets8,611,883590,4699,202,3528,177,423Noncurrent AssetsCapital AssetsCapital assets not being depreciated 363,852 95,517 459,369 -Capital assets being depreciated 102,530,006 4,002,746 106,532,752 48,047Less: Accumulated depreciation(51,509,765)(2,720,306)(54,230,071)(29,524)Total Noncurrent Assets51,384,0931,377,95752,762,05018,523Total Assets59,995,9761,968,42661,964,4028,195,946DEFERRED OUTFLOWS OF RESOURCESDeferred charge on refunding 476,379 23,730 500,109 -Deferred outflows of resources related topensions994,2964,398998,694343,367Total Deferred Outflows of Resources1,470,67528,1281,498,803343,367See accompanying notes to financial statements.Page 24CITY OF LAKE FORESTSTATEMENT OF NET POSITIONPROPRIETARY FUNDSAs of April 30, 2016Business-type Activities - Enterprise FundsWaterworksand SewerageNonmajorEnterpriseFund -Deerpath GolfCourseTotalsGovernmentalActivities -InternalService FundsLIABILITIES Current LiabilitiesAccounts payable133,772 109,970 243,742 398,238Accrued liabilities60,109 22,372 82,481 735,040Accrued interest payable143,405 7,066 150,471-Unearned revenue19,767 282,003 301,770 2,535General obligation bonds1,822,000 80,000 1,902,000-Compensated absences4,98119 5,000-Due to other funds-9,6429,642-Total Current Liabilities2,184,034511,0722,695,1061,135,813Noncurrent LiabilitiesLong-Term DebtGeneral obligation debt payable 13,128,615 649,039 13,777,654 -Compensated absences 191,078 686 191,764 61,879Net pension liability1,428,058 6,278 1,434,336 490,946Other LiabilitiesAdvances from other funds166,819-166,819-Total Noncurrent Liabilities14,914,570656,00315,570,573552,825Total Liabilities17,098,6041,167,07518,265,6791,688,638DEFERRED INFLOWS OF RESOURCESDeferred inflows of resources related topensions13,0985813,1564,503Total Deferred Inflows of Resources13,0985813,1564,503NET POSITIONNet investment in capital assets 36,909,857 672,648 37,582,505 18,523Unrestricted7,445,092156,7737,601,8656,827,649TOTAL NET POSITION$ 44,354,949$ 829,421$ 45,184,370$ 6,846,172Adjustments to reflect the consolidation ofinternal service funds activities related toenterprise funds. 721,536Net Position of Business-type Activitiesreported in the government-wide statement ofnet position.$ 45,905,906See accompanying notes to financial statements.Page 25135
CITY OF LAKE FORESTSTATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITIONPROPRIETARY FUNDSFor the Year EndedApril 30, 2016Business-type Activities - Enterprise FundsWaterworksand SewerageNonmajorEnterpriseFund - Deerpath GolfCourseTotalsGovernmentalActivities -InternalService FundsOPERATING REVENUESCharges for services $ 7,316,716 $ 1,757,036 $ 9,073,752 $ 8,726,073Connection fees 153,481 - 153,481 -Miscellaneous 7,3612,2359,596-Total Operating Revenues7,477,5581,759,2719,236,8298,726,073OPERATING EXPENSESGeneral and administrative 1,856,453 623,030 2,479,483 8,294,924Operations and maintenance 2,254,159 1,087,518 3,341,677 -Depreciation and amortization 2,648,444144,1172,792,5614,805Total Operating Expenses6,759,0561,854,6658,613,7218,299,729Operating Income (Loss)718,502(95,394)623,108426,344NONOPERATING REVENUES (EXPENSES)Investment income 38,186 2,176 40,362 29,889Gain on disposal of capital assets 3,792 - 3,792 -Interest expense (491,794)(17,488)(509,282)-Total Nonoperating Revenues(Expenses) (449,816)(15,312)(465,128)29,889Income (Loss) Before Contributionsand Transfers 268,686(110,706)157,980456,233CONTRIBUTIONS AND TRANSFERSCapital contributions 875,496 - 875,496 -Transfers in 3,00046,00049,000-Total Contributions and Transfers878,49646,000924,496-Change in Net Position1,147,182 (64,706) 1,082,476 456,233NET POSITION - Beginning of Year (asrestated) 43,207,767894,12744,101,8946,389,939NET POSITION- END OF YEAR$ 44,354,949$ 829,42145,184,370$ 6,846,172Adjustment to reflect the consolidation ofinternal service funds activities related toenterprise funds 17,950Change in Net Position of Business-typeActivities reported in the government-widestatement of activities.$ 1,100,426See accompanying notes to financial statements.Page 26CITY OF LAKE FORESTSTATEMENT OF CASH FLOWSPROPRIETARY FUNDSFor the Year Ended April 30, 2016Business-type Activities - Enterprise FundsWaterworksand SewerageNonmajorEnterpriseFund -Deerpath GolfCourseTotalsGovernmentalActivities -InternalService FundsCASH FLOWS FROM OPERATINGACTIVITIESReceived from customers $ 7,311,726 $ 1,630,620 $ 8,942,346 $ -Received from interfund charges - - - 8,603,785Paid to suppliers for goods and services (2,353,518) (1,173,950) (3,527,468) (7,763,823)Paid to employees (2,178,155)(613,176)(2,791,331)(780,558)Net Cash Flows From OperatingActivities2,780,053(156,506)2,623,54759,404CASH FLOWS FROM INVESTINGACTIVITIESInterest received 41,9782,17644,15429,889Net Cash Flows From InvestingActivities41,9782,17644,15429,889CASH FLOWS FROM NONCAPITALFINANCING ACTIVITIESTransfers from other funds (163,821)55,642(108,179)-Net Cash Flows From NoncapitalFinancing Activities (163,821)55,642(108,179)-CASH FLOWS FROM CAPITAL ANDRELATED FINANCING ACTIVITIESPrincipal paid (1,795,000) (82,000) (1,877,000) -Interest paid (412,080) (13,432) (425,512) -Acquisition and construction of capitalassets (1,015,388)(86,412)(1,101,800)-Net Cash Flows From Capital andRelated Financing Activities (3,222,468)(181,844)(3,404,312)-Net Change in Cash and CashEquivalents(564,258) (280,532) (844,790) 89,293CASH AND CASH EQUIVALENTS - Beginningof Year 7,817,400738,2728,555,6726,092,752CASH AND CASH EQUIVALENTS - ENDOF YEAR$ 7,253,142$ 457,740$ 7,710,882$ 6,182,045See accompanying notes to financial statements.Page 27136
CITY OF LAKE FORESTSTATEMENT OF CASH FLOWSPROPRIETARY FUNDSFor the Year Ended April 30, 2016Business-type Activities - Enterprise FundsWaterworksand SewerageNonmajorEnterpriseFund -Deerpath GolfCourseTotalsGovernmentalActivities -InternalService FundsRECONCILIATION OF OPERATING INCOME(LOSS) TO NET CASH FLOWS FROMOPERATING ACTIVITIESOperating income (loss) $ 718,502 $ (95,394) $ 623,108 $ 426,344Adjustments to Reconcile OperatingIncome (Loss) to Net Cash Flows FromOperating ActivitiesDepreciation 2,648,444 144,117 2,792,561 4,805Changes in assets and liabilitiesAccounts receivable(168,616)795 (167,821) (124,823)Inventories- 8,375 8,375 (238,405)Prepaid items355 (41,863) (41,508) 34,830Deferred outflows related to pensions (934,244)494 (933,750) (321,562)Accounts payable(99,714) (52,944) (152,658) 39,719Accrued salaries(15,833) 6,641 (9,192) 18,617Net pension liability612,879 2,695 615,574 210,699Deferred inflows related to pensions 13,098 58 13,156 4,503Unearned revenue 2,784 (129,446) (126,662) 2,535Compensated absences 2,398(34)2,3642,142NET CASH FLOWS FROMOPERATING ACTIVITIES$ 2,780,053$ (156,506)$ 2,623,547$ 59,404NONCASH CAPITAL AND RELATEDFINANCING ACTIVITIESCapital assets contributed by GovernmentalActivities$ 875,496$-$-See accompanying notes to financial statements.Page 28CITY OF LAKE FORESTSTATEMENT OF FIDUCIARY NET POSITIONFIDUCIARY FUNDSAs of April 30, 2016PrivatePurpose TrustPension TrustsAgency FundASSETSCash $ - $ 12,389 $ 60,174Money markets 9,468 1,220,413 -InvestmentsU.S. treasury obligations - 12,367,304 -U.S. government agencies - 3,835,773 -Municipal/corporate bonds - 7,234,830 -Common stock 486,352 1,196,746 -Equity mutual funds - 31,531,371 -Real estate investment fund - 1,731,650 -Other 344 161,476 -Prepaid items -22,253-Total Assets496,16459,314,20560,174LIABILITIESAccounts payable$ 2,684 $ 12,968 $-Due to primary government18,382--Due to special assessment districts--60,174Total Liabilities21,06612,96860,174NET POSITIONRestricted for pension benefits $ - $ 59,301,237 $ -Restricted for other purposes 475,098--TOTAL NET POSITION$ 475,098$ 59,301,237$-See accompanying notes to financial statements.Page 29137
CITY OF LAKE FORESTSTATEMENT OF CHANGES IN FIDUCIARY NET POSITIONFIDUCIARY FUNDSFor the Year EndedApril 30, 2016PrivatePurpose TrustPension TrustsADDITIONSContributionsEmployer $ - $ 3,022,855Employee- 671,162Miscellaneous-3,311Total Contributions-3,697,328Investment incomeInterest10,160 1,264,396Net appreciation (depreciation) in fair value of investments (26,198)(1,478,589)Total Investment Income(16,038) (214,193)Less Investment expense-204,338Net Investment Income(16,038)(418,531)Total Additions(16,038)3,278,797DEDUCTIONSPension benefits and refunds - 4,251,635Other administrative expenses 30,4279,670Total Deductions30,4274,261,305Change in Net Position(46,465) (982,508)NET POSITION - Beginning of Year521,56360,283,745NET POSITION - END OF YEAR$ 475,098$ 59,301,237See accompanying notes to financial statements.Page 30CITY OF LAKE FORESTINDEX TO NOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTEPageI Summary of Significant Accounting Policies32A. Reporting Entity32B. Government-Wide and Fund Financial Statements34C. Measurement Focus, Basis of Accounting, and Financial StatementPresentation37D.Assets, Liabilities, and Net Position or Equity391. Deposits and Investments 392. Receivables 433. Inventories and Prepaid Items 434. Capital Assets 435. Deferred Outflows of Resources 446. Compensated Absences 457. Long-Term Obligations 458. Deferred Inflows of Resources 459. Equity Classifications 46II Stewardship, Compliance, and Accountability 48A. Budgetary Information48III Detailed Notes on All Funds49A. Deposits and Investments49B. Receivables54C. Capital Assets54D. Interfund Receivables/Payables, Advances and Transfers57E. Long-Term Obligations59F. Fund Balances62G. Restatement of Net Position63IV Other Information64A. Employees' Retirement System64B. Risk Management80C. Joint Ventures82D. Commitments and Contingencies83E. Other Postemployment Benefits84F. Subsequent Events86G. Effect of New Accounting Standards on Current-Period Financial Statements 87See accompanying notes to financial statements.Page 31138
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe City of Lake Forest, Illinois (the City) was incorporated in 1861 under a charter granted by the IllinoisState Legislature that was amended in 1869. The City is a home-rule municipality, under the 1970 IllinoisConstitution, located in Lake County, Illinois. The City provides the following services as authorized by itscharter: public safety (police and fire protection), water and sewer, recreation, refuse collection, a seniorcenter, public library, a cemetery, and a golf course.The accounting policies of the City of Lake Forest, Illinois conform to accounting principles generallyaccepted in the United States of America as applicable to governmental units. The accepted standard-setting body for establishing governmental accounting and financial reporting principles is theGovernmental Accounting Standards Board (GASB).A.REPORTING ENTITYThis report includes all of the funds of the City. The reporting entity for the City consists of the primarygovernment and its component units. Component units are legally separate organizations for which theprimary government is financially accountable or other organizations for which the nature and significanceof their relationship with the primary government are such that their exclusion would cause the reportingentity's financial statements to be misleading. The primary government is financially accountable if (1) itappoints a voting majority of the organization's governing body and it is able to impose its will on thatorganization, (2) it appoints a voting majority of the organization's governing body and there is a potentialfor the organization to provide specific financial benefits to, or impose specific financial burdens on, theprimary government, (3) the organization is fiscally dependent on and there is a potential for theorganization to provide specific financial benefits to, or impose specific financial burdens on, the primarygovernment. Certain legally separate, tax exempt organizations should also be reported as a componentunit if all of the following criteria are met: (1) the economic resources received or held by the separateorganization are entirely or almost entirely for the direct benefit of the primary government, its componentunits, or its constituents; (2) the primary government or its component units, is entitled to, or has the abilityto access, a majority of the economic resources received or held by the separate organization; and (3) theeconomic resources received or held by an individual organization that the primary government, or itscomponent units, is entitled to, or has the ability to otherwise access, are significant to the primarygovernment.Component units are reported using one of two methods, discrete presentation or blending, Generally,component units should be discretely presented in a separate column in the financial statements. Acomponent unit should be reported as part of the primary government using the blending method if itmeets any one of the following criteria: (1) the primary government and the component unit havesubstantively the same governing body and a financial benefit or burden relationship exists, (2) theprimary government and the component unit have substantively the same governing body andmanagement of the primary government has operational responsibility for the component unit, (3) thecomponent unit serves or benefits, exclusively or almost exclusively, the primary government rather thanits citizens, or (4) the total debt of the component unit will be paid entirely or almost entirely from resourcesof the primary government.Page 32CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)A.REPORTING ENTITY(cont.)The Police Pension Employees Retirement System (PPERS) is established for the City's policeemployees. PPERS functions for the benefit of these employees and is governed by a five-memberpension board. Two members appointed by the City’s Mayor with the approval of the City Council, onepension beneficiary elected by the beneficiaries, and two police employees elected by the active policeconstitute the pension board. The City and the PPERS participants are obligated to fund all PPERS costsbased upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the City isauthorized to approve the actuarial assumptions used in the determination of contribution levels. Althoughit possesses many characteristics of a legally separate government, PPERS is reported as if it were partof the primary government because its sole purpose is to finance and administer the pensions of the City’spolice employees and because of the fiduciary nature of such activities. PPERS is reported as a pensiontrust fund and the data for the pension is included in the government's fiduciary fund financial statements.No separate annual financial report is issued for the PPERS.The Firefighters’ Pension Employees Retirement System (FPERS) is established for the City's firefighters.FPERS functions for the benefit of these employees and is governed by a five-member pension board.Two members appointed by the City’s Mayor with the approval of the City Council, one pension beneficiaryelected by the beneficiaries; and two fire employees elected by the active firefighters' constitute thepension board. The City and the FPERS participants are obligated to fund all FPERS costs based uponactuarial valuations. The State of Illinois is authorized to establish benefit levels and the City is authorizedto approve the actuarial assumptions used in the determination of contribution levels. Although itpossesses many of the characteristics of a legally separate government, FPERS is reported as if it werepart of the primary government because its sole purpose is to finance and administer the pensions of theCity’s firefighters because of the fiduciary nature of such activities. FPERS is reported as a pension trustfund and the data for the pension is included in the government's fiduciary fund financial statements. Noseparate annual financial report is issued for the FPERS.Discretely Presented Component UnitLake Forest LibraryThe government-wide financial statements include the Lake Forest Library (Library) as a component unit.The Library is a legally separate organization governed by a seven-member Board of Trustees. The boardof the Library is appointed by the Mayor of the City. The Library is financially accountable to the City as theCity's approval is needed for the Library to issue bonded debt. Complete financial statements of theLibrary are available at the City's Administrative Office, 800 North Field Drive, Lake Forest, Illinois 60045.The Library follows the same accounting policies as the City. Page 33139
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTSIn June 2012, the GASB issued statement No. 68 - Accounting and Financial Reporting for Pensions - anamendment of GASB Statement No. 27. This statement establishes standards for measuring andrecognizing assets, liabilities, deferred outflows of resources, deferred inflows of resources, andexpense/expenditures related to pensions. In November 2013, the GASB issued statement No. 71 -Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment ofGASB Statement No. 68. This statement addresses an issue regarding application of the transitionprovisions of Statement No. 68. These standards were implemented May 1, 2015. Government-Wide Financial StatementsThe statement of net position and statement of activities display information about the reportinggovernment as a whole. They include all funds of the reporting entity except for fiduciary funds. Thestatements distinguish between governmental and business-type activities. Governmental activitiesgenerally are financed through taxes, intergovernmental revenues, and other nonexchange revenues.Business-type activities are financed in whole or in part by fees charged to external parties for goods orservices. Likewise, the primary government is reported separately from certain legally separatecomponent units for which the primary government is financially accountable.The statement of activities demonstrates the degree to which the direct expenses of a given function orsegment are offset by program revenues. Direct expenses are those that are clearly identifiable with aspecific function or segment. The City does not allocate indirect expenses to functions in the statement ofactivities. Program revenues include 1) charges to customers or applicants who purchase, use or directlybenefit from goods, services, or privileges provided by a given function or segment, and 2) grants andcontributions that are restricted to meeting the operational or capital requirements of a particular functionor segment. Taxes and other items not included among program revenues are reported as generalrevenues. Internally dedicated resources are reported as general revenues rather than as programrevenues.Fund Financial StatementsFinancial statements of the City are organized into funds, each of which is considered to be a separateaccounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts,which constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, netposition/fund balance, revenues, and expenditures/expenses. Page 34CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS(cont.)Fund Financial Statements (cont.)Funds are organized as major funds or nonmajor funds within the governmental and proprietarystatements. An emphasis is placed on major funds within the governmental and proprietarycategories. Afund is considered major if it is the primary operating fund of the City or meets the following criteria:a. Total assets/deferred outflows of resources, liabilities/deferred inflows of resources, revenues,or expenditures/expenses of that individual governmental or enterprise fund are at least 10% ofthe corresponding total for all funds of that category or type, and b. The same element of the individual governmental or enterprise fund that met the 10% test is atleast 5% of the corresponding total for all governmental and enterprise funds combined.c. In addition, any other governmental or enterprise fund that the City believes is particularlyimportant to financial statement users may be reported as a major fund.Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds,even though the latter are excluded from the government-wide financial statements. Major individualgovernmental funds and major individual enterprise funds are reported as separate columns in the fundfinancial statements.The City reports the following major governmental funds:General Fund - accounts for the City's primary operating activities. It is used to account for andreport all financial resources except those accounted for and reported in another fund.Parks and Recreation Fund - used to account for the maintenance of parks and recreationprograms. Services include a fitness center, dance academy, and a variety of other indoorand outdoor programs. Principal revenue sources for this fund include a dedicated tax levy,grants, contributions, and program fees.Capital Improvements Fund - used to account for revenues to be used to fund City building andinfrastructure projects.The City reports the following major enterprise fund:Waterworks and Sewerage Fund - accounts for operations of the waterworks and seweragesystem for the residents of the City.Page 35140
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS(cont.)Fund Financial Statements (cont.)The City reports the following nonmajor governmental and enterprise funds:Special Revenue Funds - used to account for and report the proceeds of specific revenuesources that are restricted or committed to expenditures for specified purposes (other than debtservice or capital projects).Asset ForfeitureForeign Fire Insurance TaxEmergency TelephoneParks and Public LandMotor Fuel TaxGeneral CemeterySenior ResourcesHousing TrustDebt Service Fund - used to account for and report financial resources that are restricted,committed, or assigned to expenditure for the payment of general long-term debt principal,interest, and related costs.Capital Projects Funds - used to account for and report financial resources that are restricted,committed, or assigned to expenditure for capital outlays, including the acquisition orconstruction of capital facilities and other capital assets.Route 60 Bridge ImprovementsRoute 60 Intersection ImprovementsLaurel/Western Redevelopment TIFEnterprise Fund - used to account for and report any activity for which a fee is charged toexternal uses for goods or services, and must be used for activities which meet certain debt orcost recovery criteria.Deerpath Golf CourseIn addition, the City reports the following fund types:Internal Service Funds - used to account for and report the financing of goods or servicesprovided by one department or agency to other departments or agencies of the City, or to othergovernmental units, on a cost-reimbursement basis.FleetSelf InsuranceLiability InsurancePage 36CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS(cont.)Fund Financial Statements (cont.)Private-Purpose Trust Fund - used to account for monies provided by private donations onwhich the investment earnings are expected to be used for the maintenance of each individual'scemetery plot.Pension (and Other Employee Benefit) Trust Funds - used to account for and report resourcesthat are required to be held in trust for the members and beneficiaries of defined benefit pensionplans, defined contribution plans, other postemployment benefit plans, or other employee benefitplans.Firefighters' PensionPolice PensionAgency Fund - used to account for and report assets held by the City in a trustee capacity or asan agent for individuals, private organizations, and/or other governmental units.C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATIONGovernment-Wide Financial StatementsThe government-wide statement of net position and statement of activities are reported using theeconomic resources measurement focus and the accrual basis of accounting. Under the accrual basis ofaccounting, revenues are recognized when earned and expenses are recorded when the liability isincurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting fromexchange and exchange-like transactions are recognized when the exchange takes place. Property taxesare recognized as revenues in the year for which they are levied. Taxes receivable for the following yearare recorded as receivables and deferred inflows. Grants and similar items are recognized as revenue assoon as all eligibility requirements imposed by the provider are met. Special assessments are recorded asrevenue when earned. Unbilled receivables are recorded as revenues when services are provided.As a general rule, the effect of interfund activity has been eliminated from the government-wide financialstatements. Page 37141
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)C.MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION(cont.)Fund Financial StatementsGovernmental fund financial statements are reported using the current financial resources measurementfocus and the modified accrual basis of accounting. Revenues are recorded when they are bothmeasurable and available. Available means collectible within the current period or soon enough thereafterto be used to pay liabilities of the current period. For this purpose, the City considers revenues, except forproperty taxes and income taxes, to be available if they are collected within 90 days of the end of thecurrent fiscal period. Revenues for property taxes are considered to be available if they are collectedwithin 60 days of the end of the current fiscal year. Revenues for income taxes are considered to beavailable if they are collected within 120 days of the end of the current fiscal year. Expenditures arerecorded when the related fund liability is incurred, except for unmatured interest on long-term debt,claims, judgments, compensated absences, and pension expenditures, which are recorded as a fundliability when expected to be paid with expendable available financial resources.Property taxes are recorded in the year levied as receivables and deferred inflows. They are recognizedas revenues in the succeeding year when services financed by the levy are being provided.Intergovernmental aids and grants are recognized as revenues in the period the City is entitled theresources and the amounts are available. Amounts owed to the City which are not available are recordedas receivables and unavailable revenues. Amounts received before eligibility requirements (excluding timerequirements) are met are recorded as liabilities. Amounts received in advance of meeting timerequirements are recorded as deferred inflows.Revenues susceptible to accrual include property taxes, miscellaneous taxes, public charges for services,special assessments and interest. Other general revenues such as fines and forfeitures, inspection fees,recreation fees, and miscellaneous revenues are recognized when received in cash or when measurableand available under the criteria described above. Proprietary and fiduciary fund financial statements (other than agency funds) are reported using theeconomic resources measurement focus and the accrual basis of accounting, as described previously inthis note. Agency funds follow the accrual basis of accounting, and do not have a measurement focus.The proprietary funds distinguish operating revenues and expenses from nonoperating items. Operatingrevenues and expenses generally result from providing services and producing and delivering goods inconnection with a proprietary fund's principal ongoing operations. The principal operating revenues of theWaterworks and Sewerage Fund and the Deerpath Golf Course Fund are charges to customers for salesand services. Operating expenses for proprietary funds include the cost of sales and services,administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting thisdefinition are reported as nonoperating revenues and expenses.Page 38CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)C.MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION(cont.)All Financial StatementsThe preparation of financial statements in conformity with generally accepted accounting principlesrequires management to make estimates and assumptions that affect the reported amounts of assets,deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingentassets and liabilities at the date of the financial statements and the reported amounts of revenues andexpenditures/expenses during the reporting period. Actual results could differ from those estimates.D.ASSETS, LIABILITIES, AND NET POSITIONOR EQUITY1. Deposits and InvestmentsThe City and Library are authorized to invest in the following types of securities under Illinois law and theCity's investment policy:!Bonds, notes, certificates of indebtedness, treasury bills, or other securities which areguaranteed by the full faith and credit of the United States of America;!Bonds, notes, debentures, or other similar obligations of U.S. Government or its agencies;!Interest bearing bonds of any county, township, city, incorporated town, municipal corporation,or school district, and the bonds shall be registered in the name of the municipality or heldunder a custodial agreement at a bank, provided the bonds shall be rated at the time ofpurchase within the 4 highest general classifications established by a rating service ofnationally recognized expertise in rating bonds of both states and their political subdivisions;!Interest bearing savings accounts, interest bearing certificates of deposit, interest bearingdeposits, or any other investments constituting direct obligations of any bank as defined by theIllinois Banking Act (205 ILCS 5/1 et. seq.), provided, however, that such investments may bemade in only banks which are insured by the Federal Deposit Insurance Corporation;!Commercial Paper - issuer must be a United States corporation with more than $500 million inassets, rating must be within the highest tier (e.g. A-1, P-1, F-1, D-1, or higher) by two standardrating services, must mature within 180 days of purchase, such purchases cannot exceed 10%of the corporation's outstanding obligations, and such purchases cannot exceed one-third offunds;!Money Market Mutual Funds - registered under the Investment Company Act of 1940 (15U.S.C.A. § 80a-1 et. seq.), provided the portfolio is limited to bonds, notes, certificates, treasurybills, or other securities which are guaranteed by the full faith and credit of the federalgovernment as to principal and interest;Page 39142
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)D.ASSETS, LIABILITIES, AND NET POSITIONOR EQUITY(cont.)1. Deposits and Investments (cont.)!Short term discount obligations of the Federal National Mortgage Association (established by orunder the National Housing Act (1201 U.S.C. 1701 et. seq.)), or in shares or other forms ofsecurities legally issuable by savings banks or savings and loans associations incorporatedunder 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 loansassociations are insured by the Federal Deposit Insurance Corporation;!Dividend-bearing share accounts, share certificate accounts, or class of share accounts of acredit union chartered under the law 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 ofIllinois; and, provided further, that such investments may be made only in those credit unionaccounts of which are insured by applicable law; !The Public Treasurer's Investment Pool created under Section 17 of the State Treasurer Act(15 ILCS 505/17) or in a fund managed, operated, and administered by a bank subsidiary of abank, or subsidiary of a bank holding company, or use the services of such an entity to holdand invest or advise regarding the investment of any public funds; and!Repurchase agreements of government securities having the meaning set out in theGovernment Securities Act of 1986 (15 U.S.C.A § 780-5) subject to the provisions of that Actand the regulations issued there under, provided, however, that such government securities,unless registered or inscribed in the name of the City, shall be purchased through banks ortrust companies authorized to do business in the State of Illinois; and such other repurchaseagreements as are authorized in subsection (h) of Section 2 of the Public Funds InvestmentAct (30 ILCS 235/2). Repurchase agreements may be executed only with approved financialinstitutions or broker/dealers meeting the City's established standards, which shall includemutual execution of a Master Repurchase Agreement adopted by the City.The Lake Forest Cemetery Investment Fund is also permitted to invest in the following instruments:!Common and preferred stock authorized for investments of trust funds under the laws of theState of Illinois limited to 60% of the fund's investments.In addition, Pension Funds are also permitted to invest in the following instruments:!Common and preferred stock authorized for investments of trust funds under the laws of theState of Illinois limited to 35% of the fund's investments;!General accounts of Illinois-licensed life insurance companies;Page 40CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)D.ASSETS, LIABILITIES, AND NET POSITIONOR EQUITY(cont.)1. Deposits and Investments (cont.)!Separate accounts of Illinois-licensed insurance companies invested in stocks, bonds, and realestate limited to 10% of the fund's investments;!Bonds issued by any county, city, township, village, incorporated town, municipal corporation,or school district in Illinois; and!Tax anticipation warrants issued by any city, township, village, incorporated town, or fireprotection district in Illinois.Investments are stated at fair value, which is the amount at which an investment could be exchanged in acurrent transaction between willing parties. Fair values are based on quoted market prices. Noinvestments are reported at amortized cost. Adjustments necessary to record investments at fair value arerecorded in the operating statement as increases or decreases in investment income. Investment incomeon commingled investments of municipal accounting funds is allocated based on average balances. Thedifference between the bank statement balance and carrying value is due to outstanding checks and/ordeposits in transit.Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allowsgovernments within the State to pool their funds for investment purposes. Illinois Funds is not registeredwith the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of theInvestment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Fund’s share price,the price for which the investments could be sold.The Police Pension Fund’s investment policy, in accordance with Illinois Statutes, establishes the followingtarget allocation across asset classes:Asset ClassTargetLong-TermExpected RealRate of ReturnFixed Income35%1.50%Domestic Equities 36% 6.00%International Equities 18% 6.30%Real Estate 10% 5.40%Cash 1% 0.30%Illinois Compiled Statues (ILCS) limit the Police Pension Fund's investments in equities, mutual funds andvariable annuities to 65%. Securities in any one company should not exceed 5% of the total fund. Page 41143
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)D.ASSETS, LIABILITIES, AND NET POSITIONOR EQUITY(cont.)1. Deposits and Investments (cont.)The long-term expected rate of return on the Police Pension Fund's investments was determined using abuilding-block method in which best-estimate ranges of expected future real rates of return (net of pensionplan investment expense and inflation) were developed for each major asset class. These ranges werecombined to produce long-term expected rate of return by weighting the expected future real rates ofreturn by the target asset allocation percentage and by adding expected inflation. Best estimates ofarithmetic real rates of return for each major asset class included in the Police Pension Fund's targetasset allocation are listed in the table above.The Firefighters’ Pension Fund’s investment policy, in accordance with Illinois Statutes, establishes thefollowing target allocation across asset classes:Asset ClassTargetLong-TermExpected RealRate of ReturnUltra-Short Fixed Income2.6%1.0%US Fixed Income 39.5% 2.7%High Yield 2.4% 6.5%US Large Cap Growth Equity16.8%8.0%US Large Cap Value Equity13.4%7.7%US Mid Cap Value Equity2.8%9.0%US Mid Cap Value Equity11.7%8.3%US Small Cap Value Equity1.3%9.1%Europe Equity5.9%7.5%Japan Equity1.9%7.4%Equity Return Assets1.7%4.7%Illinois Compiled Statues (ILCS) limit the Firefighters' Pension Fund's investments in equities, mutualfunds and variable annuities to 65%. Securities in any one company should not exceed 5% of the totalfund. The long-term expected rate of return on the Firefighters' Pension Fund's investments was determinedusing a building-block method in which best-estimate ranges of expected future real rates of return (net ofpension plan investment expense and inflation) were developed for each major asset class. These rangeswere combined to produce long-term expected rate of return by weighting the expected future real rates ofreturn by the target asset allocation percentage and by adding expected inflation. Best estimates orarithmetic real rates of return for each major asset class included in the Firefighters' Pension Fund's targetasset allocation are listed in the table above.See Note III. A. for further information. Page 42CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)D.ASSETS, LIABILITIES, AND NET POSITIONOR EQUITY(cont.)2. Receivables Tax bills for levy year 2015 are prepared by Lake County and issued in May 2016 and are payable in twoinstallments, on or about June 1, 2016 and September 1, 2016 or within 30 days of the tax bills beingissued.The county collects such taxes and remits them periodically. The 2015 property tax levy is recognized as areceivable and deferral in fiscal 2016, net the 1.5% allowance for uncollectible. As the taxes becomeavailable to finance current expenditures, they are recognized as revenues. At April 30, 2016, the propertytaxes receivable and property taxes levied for future periods consisted of the estimated amount collectiblefrom the 2015 levy.Property taxes for levy year 2016 attaches as an enforceable lien on January 1, 2016, on property valuesassessed as of the same date. Taxes are levied by December following the lien date (by passage of a TaxLevy Ordinance). The 2016 tax levy, which attached as an enforceable lien on the property as of January1, 2016, has not been recorded as a receivable as of April 30, 2016, as the tax has not yet been levied bythe City and will not be levied until December 2016, and therefore, the levy is not measurable at April 30,2016.During the course of operations, transactions occur between individual funds that may result in amountsowed between funds. Short-term interfund loans are reported as "due to and from other funds." Long-terminterfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfundreceivables and payables between funds within governmental activities are eliminated in the statement ofnet position. Any residual balances outstanding between the governmental activities and business-typeactivities are reported in the governmental-wide financial statements as internal balances.3. Inventories and Prepaid Items Governmental fund inventories are recorded at cost. Inventories of governmental funds are recorded asexpenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded asprepaid items in both government-wide and fund financial statements. The cost of prepaid items isrecorded as expenditures/expenses when consumed rather than when purchased.4. Capital Assets Government-Wide StatementsCapital assets, which include property, plant and equipment, are reported in the government-wide financialstatements. Capital assets are defined by the City as assets with an initial, individual cost of more than$10,000 and an estimated useful life in excess of one year. All capital assets are valued at historical cost,or estimated historical cost if actual amounts are unavailable. Donated capital assets are recorded at theirestimated fair value at the date of donation. Page 43144
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)D.ASSETS, LIABILITIES, AND NET POSITIONOR EQUITY(cont.)4. Capital Assets (cont.)Government-Wide Statements(cont.)Additions to and replacements of capital assets of business-type activities are recorded at original cost,which includes material, labor, overhead, and an allowance for the cost of funds used during constructionwhen significant. For tax-exempt debt, the amount of interest capitalized equals the interest expenseincurred during construction netted against any interest revenue from temporary investment of borrowedfund proceeds. No interest was capitalized during the current year. The cost of renewals and bettermentsrelating to retirement units is added to plant accounts. The cost of property replaced, retired or otherwisedisposed of, is deducted from plant accounts and, generally, together with removal costs less salvage, ischarged to accumulated depreciation.Depreciation and amortization of all exhaustible capital assets is recorded as an allocated expense in thestatement of activities, with accumulated depreciation and amortization reflected in the statement of netposition. Depreciation and amortization is provided over the assets' estimated useful lives using thestraight-line method. The range of estimated useful lives by type of asset is as follows:Public domain infrastructure 20 - 60 YearsBuildings 30 - 50 YearsImprovements other than buildings 40 - 80 YearsVehicles, machinery, equipment, and software 3 - 20 YearsWater mains 40 YearsSanitary sewers 50 YearsFund Financial StatementsIn the fund financial statements, capital assets used in governmental fund operations are accounted for ascapital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietaryfund operations are accounted for the same way as in the government-wide statements.5. Deferred Outflows of Resources A deferred outflow of resources represents a consumption of net position/fund balance that applies to afuture period and will not be recognized as an outflow of resources (expense/expenditure) until that futuretime.A deferred charge on refunding arises from the advance refunding of debt. The difference between thecost of the securities placed in trust for future payments of the refunded debt and the net carrying value ofthat debt is deferred and amortized as a component of interest expense over the shorter of the term of therefunding issue or the original term of the refunded debt. The unamortized amount is reported as adeferred outflow of resources in the government-wide and proprietary fund financial statements.Page 44CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)D.ASSETS, LIABILITIES, AND NET POSITIONOR EQUITY(cont.)6. Compensated Absences Under terms of employment, employees are granted sick leave and vacations in varying amounts. Onlybenefits considered to be vested are disclosed in these statements. All vested vacation and sick leave pay is accrued when incurred in the government-wide and proprietaryfund financial statements. A liability for these amounts is reported in governmental funds only if they havematured, for example, as a result of employee resignations and retirements, and are payable withexpendable resources. 7. Long-Term Obligations All long-term obligations to be repaid from governmental and business-type resources are reported asliabilities in the government-wide statements. The long-term obligations consist primarily of notes andbonds payable, net pension liability, and accrued compensated absences.Long-term obligations for governmental funds are not reported as liabilities in the fund financialstatements. The face value of debts (plus any premiums) are reported as other financing sources andpayments of principal and interest are reported as expenditures. The accounting in proprietary funds is thesame as it is in the government-wide statements.For the government-wide statements and proprietary fund statements, bond premiums and discounts areamortized over the life of the issue using the effective interest method. The balance at year end is shownas an increase or decrease in the liability section of the statement of net position.8.Deferred Inflows of Resources A deferred inflow of resources represents an acquisition of net position/fund balance that applies to afuture period and therefore will not be recognized as an inflow of resources (revenue) until that future time.Page 45145
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)D.ASSETS, LIABILITIES, AND NET POSITIONOR EQUITY(cont.)9. Equity Classifications Government-Wide StatementsEquity is classified as net position and displayed in three components:a. Net investment in capital assets - Consists of capital assets including restricted capital assets,net of accumulated depreciation and reduced by the outstanding balances (excluding unspentdebt proceeds) of any bonds, mortgages, notes, or other borrowings that are attributable to theacquisition, construction, or improvement of those assets.b. Restricted net position - Consists of net position with constraints placed on their use either by 1)external groups such as creditors, grantors, contributors, or laws or regulations of othergovernments or, 2) law through constitutional provisions or enabling legislation.c. Unrestricted net position - All other net positions that do not meet the definitions of "restricted" or"net investment in capital assets."When both restricted and unrestricted resources are available for use, it is the City's policy to userestricted resources first, then unrestricted resources as they are needed.Fund StatementsGovernmental fund balances are displayed as follows:a. Nonspendable - Includes fund balance amounts that cannot be spent either because they arenot in spendable form or because legal or contractual requirements require them to bemaintained intact.b. Restricted - Consists of fund balances with constraints placed on their use either by 1) externalgroups such as creditors, grantors, contributors, or laws or regulations of other governments or2) law through constitutional provisions or enabling legislation.c. Committed - Includes fund balance amounts that are constrained for specific purposes that areinternally imposed by the government through formal action of the highest level of decisionmaking authority. Fund balance amounts are committed through a formal action (resolution) ofthe CityCouncil. This formal action must occur prior to the end of the reporting period, but theamount of the commitment, which will be subject to the constraints, may be determined in thesubsequent period. Any changes to the constraints imposed require the same formal action ofthe CityCouncil that originally created the commitment.Page 46CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)D.ASSETS, LIABILITIES, AND NET POSITIONOR EQUITY(cont.)9. Equity Classifications (cont.)Fund Statements(cont.)d. Assigned - Includes spendable fund balance amounts that are intended to be used for specificpurposes that do not meet the criteria to be classified as restricted or committed. Intent isexpressed by: a) The City Council itself; or b) a body or official to which the City Council hasdelegated the authority to assign amounts to be used for specific purposes. Annually, the CityCouncil approves the fiscal policy which delegates this authority to the City's Finance Director.Within the other governmental fund types (special revenue, debt service, capital projects)resources are assigned in accordance with the established fund purpose and approvedbudget/appropriation. Assignments may take place after the end of the reporting period.e. Unassigned - Includes residual positive fund balance within the general fund which has not beenclassified within the other above mentioned categories. Unassigned fund balance may alsoinclude negative balances for any governmental fund if expenditures exceed amounts restricted,committed, or assigned for those purposes.Proprietary fund equity is classified the same as in the government-wide statements.In the General Fund, it is the City's policy to consider restricted resources to have been spent first whenan expenditure is incurred for which both restricted and unrestricted (i.e. committed, assigned, orunassigned) fund balances are available, followed by committed, and then assigned fund balances.Unassigned amounts are only used after the other resources have been used. In other governmentalfunds (special revenue, capital projects, and debt service fund types), it is the City's policy to considerrestricted resources to have been spent last. When an expenditure is incurred for purposes for which bothrestricted and unrestricted fund balances are available, the City first uses any assigned amounts, followedby committed and then restricted amounts.See Note III. F. for further information.Page 47146
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE II - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A.BUDGETARY INFORMATIONThe budget amounts represent the operating budget for the City and the appropriations represent theCity's legal expenditure limit. The City Council follows these procedures in establishing the budgetary andappropriations data reflected in the financial statements:(1) The City Manager submits to the City Council a proposed operating budget for the fiscal year. Theoperating 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 legallyenacted 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, butlegally 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 fundlevel must be approved by the City Council.(5) Formal budgetary integration and legally adopted budgets are employed as a managementcontrol device during the year for the General and Special Revenue Funds, through an internalreporting system. Such budgetary integration permits the City's department managers to monitoractual 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 fiscalyear lapse.(6) Governmental fund budgets are adopted for all funds and are on a basis consistent with generallyaccepted accounting principles (GAAP). All proprietary funds have budgets and are generally inaccordance with GAAP except that principal retirement is budgeted and deprecation expense isnot budgeted. Additionally, the Pension Trust Funds adopted budgets which are generally inaccordance with GAAP.Page 48CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE III - DETAILED NOTES ON ALL FUNDS A.DEPOSITS AND INVESTMENTSThe City's and Library's deposits and investments at year end were comprised of the following:CarryingValueStatementBalancesAssociated RisksDeposits$ 48,015,921 $ 48,775,387 Custodial Credit Risk -DepositsU.S. government agencies - explicitlyguaranteed3,828,718 3,828,718 Custodial Credit Risk -Investments, InterestRate RiskU.S. government agencies - implicitlyguaranteed292,928 292,928 Credit Risk, CustodialCredit Risk - Investments,Concentration of CreditRisk, Interest Rate RiskMutual funds - other than bonds 32,484,634 32,484,634 N/AU.S. treasury obligations 13,380,917 13,380,917 Custodial Credit Risk -Investments, InterestRate RiskReal estate investment fund 1,731,650 1,731,650 Custodial Credit Risk -InvestmentsCorporate bonds 6,896,931 6,896,931 Credit Risk, CustodialCredit Risk - Investments,Concentration of CreditRisk, Interest Rate Risk,Foreign Currency RiskMunicipal bonds 337,899 337,899 Credit Risk, CustodialCredit Risk - Investments,Concentration of CreditRisk, Interest Rate RiskIllinois funds 10,716,028 10,716,028 Credit RiskEquity securities 4,395,501 4,395,501 Custodial Credit Risk -Investments, ForeignCurrency RiskMutual funds - bond funds 639,108 639,108 Credit Risk, Interest RateRisk, Foreign CurrencyRiskPetty cash 10,625-N/ATotal Deposits and Investments$122,730,860$123,479,701Page 49147
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)A.DEPOSITS AND INVESTMENTS(cont.)Reconciliation to financial statementsPer statement of net positionCash and cash equivalents - primarygovernment$ 56,204,767Investments - primary government 4,487,724Cash and cash equivalents - Lake ForestLibrary2,351,899Per statement of net position - fiduciary fundsPrivate Purpose Trust - money markets 9,468Private Purpose Trust - common stock 486,352Agency Fund - cash60,174Pension Trusts - cash12,389Pension Trusts - money markets1,220,413Pension Trusts - U.S. treasury obligations 12,367,304Pension Trusts - U.S. government agencies 3,835,773Pension Trusts - Municipal/corporate bonds 7,234,830Pension Trusts - common stock1,196,746Pension Trusts - equity mutual funds31,531,371Pension Trusts - real estate investment fund 1,731,650Total Deposits and Investments$122,730,860Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time andsavings accounts (including NOW accounts) and $250,000 for demand deposit accounts (interest-bearingand noninterest-bearing). In addition, if deposits are held in an institution outside of the state in which thegovernment is located, insured amounts are further limited to a total of $250,000 for the combined amountof all deposit accounts.Custodial Credit Risk DepositsCustodial credit risk for deposits is the risk that in the event of a financial institution failure, the City'sdeposits may not be returned to the City. The City's investment policy requires that deposits that exceedthe amount insured by FDIC, NCUA, and/or SPIC insurance be collateralize at the rate of 110% of suchdeposits, by U.S. Government Securities, obligations of Federal instrumentalities, obligations of the stateof Illinois, or general obligation bonds of the City. The Cemetery Investment Fund and the Pension Fundsdo not have a deposit policy for custodial credit risk.The City does not have any deposits exposed to custodial credit risk.Page 50CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)A.DEPOSITS AND INVESTMENTS(cont.)Custodial Credit Risk (cont.)InvestmentsCustodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be ableto recover the value of its investments or collateral securities that are in possession of an outside party.The investment policies for the City, Cemetery, and Pension Funds require investment securities be heldby an authorized custodial bank pursuant to a written custodial agreement.The City does not have any investments exposed to custodial credit risk. Credit Risk Credit risk is the risk that an issuer or other counterparty will not fulfill its obligation. The City's investmentpolicy limits the City's exposure to credit risk by limiting investments to the safest types as describedabove. The Cemetery and Pension Funds' general investment policy is to follow the prudent person rule subjectto specific restrictions of the Illinois Cemetery Care Act, the Illinois Pension Code, and the respectiveCemetery and Pension Fund's asset allocation policy. Under the prudent person rule, investments shall bemade with care, skill, prudence, and diligence under the prevailing circumstances that a prudent personacting in similar capacity and familiar with such matters would use in the investment of a fund or likecharacter and with like aims.The Cemetery and Police Pension Funds' investment policy further limits the investment in any onecompany or issuer to 5% of the funds' total assets. The Cemetery fund also limits the investment in anyone equity industry group to no more than 15% of the Fund's assets.Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.As of April 30, 2016, the City's investments were rated as follows:Investment TypeStandard & PoorsMoody's InvestorsServicesIllinois fundsAAANot RatedU.S. government agencies - implicitlyguaranteedNot Rated, AA+ Not Rated, AaaMunicipal bondsNot Rated, AA+Aa2 to AaaCorporate bonds BBB- to AAA Baa3 to AaaMutual funds - bond funds BBB BaaPage 51148
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)A.DEPOSITS AND INVESTMENTS(cont.)Interest Rate RiskInterest rate risk is the risk that changes in interest rates will adversely affect the value of an investment.Although the City and Cemetery Fund's investment policy does not specifically limit the length of maturityof investments, it requires that the City and Cemetery Fund to minimize the interest rate risk by structuringthe investment portfolio so that securities mature to meet cash requirements for ongoing operations,thereby avoiding the need to sell securities on the open market prior to maturity and by investing operatingfunds primarily in short-term securities, money market mutual funds, or similar investment pools.The Police Pension Fund's investment policy does not limit the length of maturity of investments since it ispassively managing its fixed income exposure to the Barclays Capital Intermediate Government Index.Although the Firefighters' Pension Fund's investment policy does not specifically limit the length of maturityof investments, it manages interest rate risk by investing fixed income assets in proportion to the presentvalue of the Fund's projected liabilities. As of April 30, 2016, the City's investments were as follows:Police Pension FundMaturityInvestment TypeFair ValueLess than oneyear1 - 5 years6-10 yearsU.S. treasury obligations $ 9,388,651 $ 90,256 $ 6,030,191 $ 3,268,204U.S. government agencies 768,784 206,800 546,303 15,681Corporate bonds1,078,672378,966562,832136,874Totals$ 11,236,107$ 676,022$ 7,139,326$ 3,420,759Firefighters' Pension FundMaturityInvestment TypeFair ValueLess than oneyear1 - 5 years6 - 10 yearsMore than 10yearsU.S. treasury obligation $ 3,992,266 $ 1,117,606 $ 1,350,390 $ 1,524,270 $-U.S. government agencies 3,273,789 51,330 844,061 954,129 1,424,269Municipal bonds337,899 75,073 163,215 99,611-Corporate bonds5,818,259177,7853,782,4291,725,552132,493Totals$ 13,422,213$ 1,421,794$ 6,140,095$ 4,303,562$ 1,556,762Page 52CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)A.DEPOSITS AND INVESTMENTS(cont.)The City also has $79,073 invested in U.S. government agencies and $639,108 invested in mutual funds -bond funds that have a maturity of less than one year.Foreign Currency RiskForeign currency risk is the risk that changes in exchange rates will adversely affect the fair value of aninvestment or deposit. To diversify risk, the Firefighters' Pension Fund uses an equity asset allocation thatincorporates a variety of management styles. The allocations are reviewed quarterly and rebalanced ifnecessary. To diversify risk, the Police Pension funds are well diversified across international regions. At April 30, 2016, the City was exposed to foreign currency risk as follows:InvestmentCurrencyMaturity DateFair ValueWilliam Blair Funds International - GeneralCemeteryVariousN/A $ 812,045William Blain Funds International - CemeteryTrustVariousN/A141,218Vanguard Star - Fire PensionVariousN/A 1,465,560Franklin Mutual European Z - Fire Pension VariousN/A 1,155,359Dodge & Cox International Stock Fund - PolicePensionVariousN/A 2,408,098Vanguard International Fund - Police Pension VariousN/A 1,435,303Foreign Stock Issues - Police Pension VariousN/A71,206Total$ 7,488,789Money-Weighted Rate of ReturnPolice Pension FundFor the year ended April 30, 2016, the annual money-weighted rate of return on the police pension planinvestments, net of pension plan investment expense, was (1.44)%. The money-weighted rate of returnexpresses investment performance, net of investment expense, adjusted for the changing amountsactually invested.Firefighters' Pension FundFor the year ended April 30, 2016, the annual money-weighted rate of return on the firefighters' pensionplan investments, net of pension plan investment expense, was 0.26%. The money-weighted rate of returnexpresses investment performance, net of investment expense, adjusted for the changing amountsactually invested.See Note I.D.1. for further information on deposit and investment policies.Page 53149
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)B. RECEIVABLES All of the receivables on the balance sheet are expected to be collected within one year, with the exceptionof the City's loans receivables. The City receives annual principal payments on the loans through fiscalyear 2019.C. CAPITAL ASSETS Capital asset activity for the year ended April 30, 2016, was as follows:BeginningBalanceAdditionsDeletionsEndingBalanceGovernmental ActivitiesCapital assets not being depreciatedLand and land improvements $ 45,303,412 $ 1,100,000 $ - $ 46,403,412Infrastructure - land 66,740,770 - - 66,740,770Construction in progress637,762-637,762-Total Capital Assets Not BeingDepreciated112,681,9441,100,000637,762113,144,182Capital assets being depreciatedInfrastructure 181,891,620 26,819 - 181,918,439Buildings 32,137,757 211,685 - 32,349,442Improvements other than buildings 30,633,219 2,975,000 - 33,608,219Machinery and equipment16,152,9581,937,518965,55917,124,917Total Capital Assets BeingDepreciated260,815,5545,151,022965,559265,001,017Total Capital Assets373,497,4986,251,0221,603,321378,145,199Less: Accumulated depreciation forInfrastructure (122,156,482) (2,784,217) - (124,940,699)Buildings (11,312,988) (751,843) - (12,064,831)Improvements other than buildings (12,373,844) (1,507,950) - (13,881,794)Machinery and equipment(12,436,983)(992,115)929,848(12,499,250)Total Accumulated Depreciation(158,280,297)(6,036,125)929,848(163,386,574)Net Capital Assets BeingDepreciated102,535,257(885,103)35,711101,614,443Total Governmental ActivitiesCapital Assets, Net ofAccumulated Depreciation$ 215,217,201$ 214,897$ 673,473$ 214,758,625Page 54CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)C. CAPITAL ASSETS(cont.)Depreciation expense was charged to functions as follows:Governmental ActivitiesGeneral government$ 1,864,739Highways and streets2,912,177Sanitation126,779Culture and recreation950,783Public safety181,647Total Governmental Activities Depreciation Expense$ 6,036,125BeginningBalanceAdditionsDeletionsEnding BalanceBusiness-type ActivitiesCapital assets not being depreciatedLand $ 459,369 $ - $ - $ 459,369Construction in progress954,586-954,586-Total Capital Assets Not BeingDepreciated1,413,955-954,586459,369Capital assets being depreciatedBuildings 27,021,790 - - 27,021,790Improvements other than buildings 42,476,163 1,923,168 6,916 44,392,415Machinery and equipment 4,750,795 135,456 104,945 4,781,306Sanitary sewers and related property29,461,745875,496-30,337,241Total Capital Assets BeingDepreciated103,710,4932,934,120111,861106,532,752Total Capital Assets105,124,4482,934,1201,066,447106,992,121Less: Accumulated depreciation forBuildings (12,593,257) (1,003,570) - (13,596,827)Improvements other than buildings (19,783,787) (1,001,665) 4,675 (20,780,777)Machinery and equipment (3,050,144) (218,277) 104,945 (3,163,476)Sanitary sewers and related property(16,119,942)(569,049)-(16,688,991)Total Accumulated Depreciation(51,547,130)(2,792,561)109,620(54,230,071)Net Capital Assets BeingDepreciated52,163,363141,5592,24152,302,681Business-type CapitalAssets, Net of AccumulatedDepreciation$ 53,577,318$ 141,559$ 956,827$ 52,762,050Page 55150
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)C. CAPITAL ASSETS(cont.)BeginningBalanceAdditionsDeletionsEndingBalanceComponent Unit - Lake Forest LibraryCapital assets not being depreciatedLand $ 70,000 $ - $ - $ 70,000Art149,000--149,000Total Capital Assets Not BeingDepreciated219,000--219,000Capital assets being depreciatedBuildings 1,180,907 - - 1,180,907Improvements other than buildings 2,331,505 - - 2,331,505Machinery and equipment3,854,882368,439319,7443,903,577Total Capital Assets BeingDepreciated7,367,294368,439319,7447,415,989Total Capital Assets7,586,294368,439319,7447,634,989Less: Accumulated depreciation forBuildings (654,166) (23,338) - (677,504)Improvements other than buildings (1,074,456) (162,935) - (1,237,391)Machinery and equipment(2,278,425)(346,234)319,744(2,304,915)Total Accumulated Depreciation(4,007,047)(532,507)319,744(4,219,810)Net Capital Assets BeingDepreciated3,360,247(164,068)-3,196,179Total Component UnitCapital Assets, Net ofAccumulated Depreciation$ 3,579,247$ (164,068)$-$ 3,415,179Page 56CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)D. INTERFUNDRECEIVABLES/PAYABLES, ADVANCES AND TRANSFERS Interfund Receivables/PayablesThe following is a schedule of interfund receivables and payables:Receivable FundPayable FundAmountParks and RecreationDeerpath Golf Course$9,642Total - Fund Financial Statements$9,642Less: Interfund receivables created with internal service fundeliminations(721,536)Add: Interfund advances166,819Total Internal Balances - Government-Wide Statement ofNet Position$ (545,075)All amounts are due within one year.The principal purpose of these interfunds is for operating transactions between funds and will be paidwithin the normal course of business.AdvancesThe general fund advanced funds to Waterworks and Sewerage Fund resulting from past operatingtransactions between funds. The balance will be repaid in the next fiscal year. The following is a schedule of interfund advances:Receivable FundPayable FundAmountAmount NotDue Within OneYearGeneral FundWaterworks and Sewerage$ 166,819$-Total$ 166,819Page 57151
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)D. INTERFUNDRECEIVABLES/PAYABLES, ADVANCES AND TRANSFERS(cont.)TransfersThe following is a schedule of interfund transfers:Fund Transferred ToFund Transferred FromAmountPrincipal PurposeCapital improvements General$ 1,321,139 Transfer for capital outlayParks and recreation General381,021 Transfer for operationsNonmajor government General846,581Transfer for operations anddebt serviceWaterworks and sewerage General3,000 Transfer for operationsCapital improvements Nonmajor government297,580 Transfer for capital outlayDeerpath golf course Parks and recreation46,000Transfer for operationsTotal - Fund Financial Statements2,895,321Less: Government-wide eliminations(2,846,321)Plus: Capital contribution from GovernmentalActivities to Business-type Activities875,496Total Transfers - Government-Wide Statementof Activities$ 924,496Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that thebudget requires to expend them, (2) move receipts restricted to debt service from the funds collecting thereceipts to the debt service fund, and (3) use unrestricted revenues collected in the general fund tofinance various programs accounted for in other funds in accordance with budgetary authorizations.Page 58CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)E. LONG-TERM OBLIGATIONS Long-term obligations activity for the year ended April 30, 2016, was as follows:BeginningBalance (asrestated)IncreasesDecreasesEndingBalanceAmounts DueWithin OneYearGovernmental ActivitiesBonds and Notes PayableGeneral obligation bonds $ 34,228,760 $ 9,780,000 $ 1,618,219 $ 42,390,541 $ 1,628,336Notes payable - 830,080 173,360 656,720 173,360Premiums 82,195 106,385 23,073 165,507 -Discount(52,053)-(6,571)(45,482)-Sub-totals34,258,90210,716,4651,808,08143,167,2861,801,696Other LiabilitiesCompensated absences 1,803,882 2,014,768 2,087,906 1,730,744 110,000Other postemploymentbenefits 229,476 55,062 - 284,538 -Net pension liability41,856,0637,219,018-49,075,081-Total Other Liabilities43,889,4219,288,8482,087,90651,090,363110,000Total GovernmentalActivities Long-TermLiabilities$ 78,148,323$ 20,005,313$ 3,895,987$ 94,257,649$ 1,911,696Business-type ActivitiesBonds PayableGeneral obligation bonds $ 17,398,000 $ - $ 1,877,000 $ 15,521,000 $ 1,902,000Premium204,838-46,184158,654-Sub-totals17,602,838-1,923,18415,679,6541,902,000Other LiabilitiesCompensated absences 194,400 216,326 213,962 196,764 5,000Net pension liability818,762615,574-1,434,336-Total Other Liabilities1,013,162831,900213,9621,631,1005,000Total Business-typeActivities Long-TermLiabilities$ 18,616,000$ 831,900$ 2,137,146$ 17,310,754$ 1,907,000Component Unit - Lake ForestLibraryCompensated absences $ 191,801 $ 170,770 $ 212,384 $ 150,187 $ 5,000Capital leases 25,538 - 25,538 - -Other postemployment benefits 31,114 17,657 - 48,771 -Net pension liability871,523655,241-1,526,764-Total Other Liabilities1,119,976843,668237,9221,725,7225,000Total Component UnitLong-Term Liabilities$ 1,119,976$ 843,668$ 237,922$ 1,725,722$ 5,000General Obligation Bonds All general obligation bonds payable are backed by the full faith and credit of the City. Bonds in thegovernmental funds will be retired by future property tax levies accumulated by the Debt Service Fund.Business-type activities bonds are payable by revenues from user fees of those funds or, if the revenuesare not sufficient, by future tax levies.Page 59152
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)E. LONG-TERM OBLIGATIONS(cont.)General Obligation Bonds (cont.)Governmental ActivitiesGeneral Obligation BondsDate ofIssueFinalMaturityInterestRatesOriginalIndebtednessBalanceApril 30, 2016Special Service Area 25 5/1/2003 12/15/2022 1.95-2.95% $ 1,050,000 $ 470,000Special Service Area 26 10/7/2003 12/15/2022 2.50-3.40% 276,500 126,706Special Service Area 29 12/20/2004 12/15/2023 2.55-3.65% 2,000,000 1,029,8352008 Series 4/15/2008 12/15/20273.375-3.875% 9,750,000 6,685,0002009 Series 5/14/2009 12/15/2028 2.00-4.10% 3,680,000 2,855,0002010 Series B 5/12/2010 12/15/2032 5.75% 3,000,000 3,000,0002010 Series C 5/12/2010 12/15/2029 3.00-5.50% 5,425,000 5,125,0002011 Series B 9/6/2011 12/15/2023 1.00-3.00% 4,470,000 3,784,0002013 Series 9/16/2013 12/15/2032 2.00-4.00% 9,715,000 9,535,0002015 Series 8/3/2015 12/15/2036 2.50-3.75% 9,780,0009,780,000Total Governmental Activities - General Obligation Bonds$ 42,390,541Business-type ActivitiesGeneral Obligation BondsDate ofIssueFinalMaturityInterestRatesOriginalIndebtednessBalanceApril 30, 20162011 Series A9/6/2011 12/15/2020 1.50-3.00% $ 1,195,000 $ 645,0002011 Series B9/6/2011 12/15/2023 1.00-3.00% 20,355,00014,876,000Total Business-type Activities - General Obligation Bonds$ 15,521,000Page 60CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)E. LONG-TERM OBLIGATIONS(cont.)General Obligation Bonds (cont.)Debt service requirements to maturity are as follows:Governmental ActivitiesBusiness-type ActivitiesGeneral Obligation BondsGeneral Obligation BondsYearsPrincipalInterestPrincipalInterest2017$ 1,628,336 $ 1,639,179 $ 1,902,000 $ 395,39820181,898,796 1,499,590 1,952,000 357,35820192,044,625 1,444,238 1,987,000 308,87020202,365,850 1,382,945 2,067,000 259,52020212,502,502 1,312,979 2,132,000 207,1962022-202612,170,432 5,292,236 5,481,000 297,9752027-203111,880,000 3,135,857--2032-20367,550,000 682,538--2037350,00013,125--Totals$ 42,390,541$ 16,402,687$ 15,521,000$ 1,826,317Notes PayableThe City entered into a long term promissory note as a part of purchasing a parking lot during the fiscalyear ended April 30, 2016. The note will be repaid from the General Fund.Notes Payable at April 30, 2016 consist of the following:Governmental ActivitiesNotes PayableDate ofIssueFinalMaturityInterestRatesOriginalIndebtednessBalanceApril 30, 20162016 Promissory Note 5/21/2015 7/1/2017 0% $ 830,080$ 656,720Total Governmental Activities Notes Payable$ 656,720Debt service requirements to maturity are as follows:Governmental ActivitiesNotes PayableYearsPrincipalInterest2017$ 173,360 $-2018483,360-Totals$ 656,720$-Page 61153
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)E. LONG-TERM OBLIGATIONS(cont.)Other Debt Information Estimated payments of compensated absences, other post employment benefits, and net pension liabilityare not included in the debt service requirement schedules. Compensated absences and the IMRF netpension liability will be liquidated by the applicable governmental funds (primarily the General, Parks andRecreation, Senior Commission, and Cemetery Funds) that account for the salaries and wages for therelated employees. Other post employment benefits and the Police and Firefighters' net pension liabilitywill be liquidated by the General Fund.F. FUND BALANCESGovernmental FundsGovernmental fund balances reported on the fund financial statements at April 30, 2016, include thefollowing:General FundParks andRecreationFundCapitalImprovementsFundNonmajorGovernmentalFundsTotalsFund Balances Nonspendable:Property held forresale $ - $ - $ - $ 380,000 $ 380,000Prepaid items 81,621 - - 28,539 110,160Inventories 118,730 - - - 118,730Long-term loansreceivable 905,054 - - - 905,054Long-term advances 166,819 - - - 166,819 Restricted for:Culture andrecreation - 3,022,756 - 585,688 3,608,444Highway and streets - - - 802,328 802,328Public safety - fire - - - 186,448 186,448Public safety -police - - - 313,841 313,841Cemetery perpetualcare - - - 5,138,786 5,138,786Affordable housing--- 702,211 702,211Capital projects-- 5,970,787 1,937,254 7,908,041Debt service--- 1,677,012 1,677,012 Assigned to:Capital projects--- 1,456,053 1,456,053 Unassigned:22,509,969---22,509,969Total FundBalances $ 23,782,193$ 3,022,756$ 5,970,787$ 13,208,160$ 45,983,896Page 62CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)G. RESTATEMENT OFNET POSITIONNet position has been restated as a result of the implementation of GASB Statement No. 68 - Accountingand Financial Reporting for Pensions - an Amendment of GASB Statement No. 27 and implementation ofGASB Statement No. 71 - Pension Transition for Contributions Made Subsequent to the MeasurementDate. These statements require the net pension asset and related deferred outflows and deferred inflows,if any, to be reported in the financial statements. The details of this restatement are as follows:GovernmentalActivitiesBusiness-typeActivitiesDiscretelyPresentedComponentUnitNet Position - April 30, 2015 (as reported)$223,541,715 $ 45,559,298 $ 5,161,912Less: Prior year Police and Firefighters' Pension netpension asset(2,432,828)--Less: Net pension liability - IMRF(5,670,599) (818,762) (871,523)Add: Deferred outflows related to pensions - IMRF425,567 64,944 61,070Less: Net pension liability - Police Pension(24,505,140)--Less: Net pension liability - Firefighters' Pension(11,680,324)--Net position - April 30, 2015 (as restated)$179,678,391$ 44,805,480$ 4,351,459Waterworksand SewerageFundNonmajorEnterpriseFund -Deerpath GolfCourse FundInternalServiceFundsNet Position - April 30, 2015 (as reported)$ 43,962,894 $ 892,818 $ 6,648,381Less: Net pension liability - IMRF(815,179) (3,583) (280,247)Add: Deferred outflows related to pensions - IMRF60,0524,89221,805Net position - April 30, 2015 (as restated)$ 43,207,767$ 894,127$ 6,389,939Page 63154
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION A.EMPLOYEES' RETIREMENT SYSTEMIllinois Municipal Retirement FundPlan description. All employees (other than those covered by the Police and Firefighters' Pension plans)hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF asparticipating members. IMRF has a two tier plan. Members who first participated in IMRF or an IllinoisReciprocal System prior to January 1, 2011 participate in Tier 1. All other members participate in Tier 2.For Tier 1 participants, pension benefits vest after 8 years of service. Participating members who retire ator after age 60 with 8 years of service are entitled to an annual retirement benefit, payable monthly for lifein an amount equal to 1 2/3% of their final rate of earnings (average of the highest 48 consecutive months'earnings during the last 10 years) for credited service up to 15 years and 2% for each year thereafter.For Tier 2 participants, pension benefits vest after 10 years of service. Participating members who retire ator after age 67 with 10 years of service are entitled to an annual retirement benefit, payable monthly forlife in an amount equal to 1 2/3% of their final rate of earnings (average of the highest 96 consecutivemonths' earnings during the last 10 years, capped at $106,800) for credited service up to 15 years and 2%for each year thereafter. However, an employee’s total pension cannot exceed 75% of their final rate ofearnings. If an employee retires after 10 years of service between the ages of 62 and 67, and has lessthan 30 years of service credit, the pension will be reduced by 1/2% for each month that the employee isunder the age of 67. If an employee retires after 10 years of service between the ages of 62 and 67, andhas between 30 and 35 years of service credit, the pension will be reduced by the lesser of 1/2% for eachmonth that the employee is under the age of 67 or 1/2% for each month of service credit less than 35years. IMRF also provides death and disability benefits. These benefit provisions and all otherrequirements are established by Illinois Compiled Statutes.IMRF issues a publicly available financial report that includes financial statements and requiredsupplementary information. The report may be obtained at www.imrf.org.Plan membership. At December 31, 2015, the measurement date, membership in the plan was asfollows:Retirees and beneficiaries244Inactive, non-retired members 181Active members196Total621Page 64CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Contributions. As set by statute, City employees participating in IMRF are required to contribute 4.50% oftheir annual covered salary. The statute requires the City to contribute the amount necessary, in additionto member contributions, to finance the retirement coverage of its own employees. The City's andLibrary’s actuarially determined contribution rate for calendar year 2015 was 14.88% percent of annualcovered payroll. The City and the Library also contributes for disability benefits, death benefits andsupplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disabilityand death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rateis set by statute.Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2015,and the total pension liability used to calculate the net pension liability/(asset) was determined by anactuarial valuation as of that date.Summary of Significant Accounting Policies. For purposes of measuring the net pensionliability/(asset), deferred outflows of resources and deferred inflows of resources related to pensions, andpension expense, information about the fiduciary net position of IMRF and additions to/deductions fromIMRF fiduciary net position have been determined on the same basis as they are reported by IMRF. Forthis purpose, benefit payments (including refunds of employee contributions) are recognized when dueand payable in accordance with the benefit terms. Investments are reported at fair value.Actuarial Assumptions. The assumptions used to measure the total pension liability in the December 31,2015 annual actuarial valuation included a 7.48% investment rate of return, (b) projected salary increasesfrom 3.75% to 14.50%, including inflation, and (c) price inflation of 2.75%. The retirement age is based onexperience-based table of rates that are specific to the type of eligibility condition. The tables were lastupdated for the 2014 valuation pursuant to an experience study of the period 2011-2013.Actuarial cost method Entry Age NormalAsset valuation method Market ValueActuarial assumptionsInvestment Rate of Return 7.48%Inflation 3.50%Salary increases 3.75% to 14.50%, including inflationPrice inflation 2.75%Page 65155
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Mortality. For non-disabled retirees, an IMRF specific mortality table was used with fully generationalprojection scale MP-2014 (base year 2014). The IMRF specific rates were developed from the RP-2014Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. Fordisabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2014). The IMRF specific rates were developed from the RP-2014 Disabled RetireesMortality Table applying the same adjustment that were applied for non-disabled lives. For activemembers, an IMRF specific mortality table was used with fully generational projection scale MP-2014(base year 2014). The IMRF specific rates were developed from the RP-2014 Employee Mortality Tablewith adjustments to match current IMRF experience.Long-Term Expected Real Rate of Return. The long-term expected rate of return on pension planinvestments was determined using an asset allocation study in which best-estimate ranges of expectedfuture real rates of return (net of pension plan investment expense and inflation) were developed for eachmajor asset class. These ranges were combined to produce long-term expected rate of return by thetarget asset allocation percentage and by adding expected inflation. The target allocation and bestestimates of arithmetic and geometric real rates of return for each major asset class are summarized inthe following table:Projected Returns/RisksAsset ClassTargetAllocationOne YearArithmeticTen YearGeometricEquities38%8.85%7.39%International Equities 17% 9.55% 7.59%Fixed income 27% 3.05% 3.00%Real estate 8% 7.20% 6.00%Alternatives 9%Private equity 13.15% 8.15%Hedge funds 5.55% 5.25%Commodities 4.40% 2.75%Cash equivalents 1% 2.25% 2.25%Discount rate.The discount rate used to measure the total pension liability for IMRF was 7.48%. Thediscount rate calculated using the December 31, 2014 measurement date was 7.49%. The projection ofcash flows used to determine the discount rate assumed that member contributions will be made at thecurrent contribution rate and that City contributions will be made at rates equal to the difference betweenactuarially determined contribution rates and the member rate. Based on those assumptions, the fiduciarynet position was projected not to be available to make all projected future benefit payments of current planmembers. Therefore, the long-term expected rate of return on investments of 7.50% was blended with theindex rate of 3.57% for tax exempt 20-year general obligation municipal bonds with an average AA creditrating at December 31, 2015 to arrive at a discount rate of 7.48% used to determine the total pensionliability. The year ending December 31, 2086 is the last year in the 2016 to 2115 projection period forwhich projected benefit payments are fully funded.Page 66CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Discount rate sensitivity. The following is a sensitivity analysis of the net pension liability/(asset) tochanges in the discount rate. The table below presents the pension liability of the City calculated using thediscount rate of 7.48% as well as what the net pension liability/(asset) would be if it were to be calculatedusing a discount rate that is 1 percentage point lower (6.48%) or 1 percentage point higher (8.48%) thanthe current rate:1% Decrease CurrentDiscount Rate 1% IncreaseCity:Total pension liability$ 98,313,409 $ 87,093,580 $ 77,898,713Plan fiduciary net pension75,725,29475,725,29475,725,294Net pension liability/(asset)$ 22,588,115$ 11,368,286$ 2,173,419Library:Total pension liability $ 13,203,518 $ 11,696,692 $ 10,461,819Plan fiduciary net pension 10,169,92810,169,92810,169,928Net pension liability/(asset)$ 3,033,590$ 1,526,764$ 291,891Total:Total pension liability $ 111,516,927 $ 98,790,272 $ 88,360,532Plan fiduciary net pension 85,895,22285,895,22285,895,222Net pension liability/(asset)$ 25,621,705$ 12,895,050$ 2,465,310Changes in net pension liability/(asset). The City's changes in net pension liability/(asset) for the calendaryear ended December 31, 2015 was as follows:Increase (Decrease)Total PensionLiability (a)Plan Fiduciary NetPosition (b)Net PensionLiability/(Asset) (a)- (b)City:Balances at December 31, 2014$ 96,324,203 $ 89,834,842 $ 6,489,361Service cost1,549,831- 1,549,831Interest on total pension liability7,086,670- 7,086,670Differences between expected and actualexperience of the total pension liability796,382-796,382Change of assumptions103,436-103,436Transfer of liability(13,798,877)- (13,798,877)Benefit payments, including refunds ofemployee contributions(4,968,065) (4,968,065)-Contributions - employer- 1,757,095 (1,757,095)Contributions - employee-664,444(664,444)Net investment income-442,808(442,808)Other (net transfer)-(12,005,830)12,005,830Balances at December 31, 2015$ 87,093,580$ 75,725,294$ 11,368,286Page 67156
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Increase (Decrease)Total PensionLiability (a)Plan Fiduciary NetPosition (b)Net PensionLiability/(Asset) (a)- (b)Library:Balances at December 31, 2014$ 12,936,367 $ 12,064,844 $ 871,523Service cost208,143-208,143Interest on total pension liability951,742-951,742Differences between expected and actualexperience of the total pension liability106,954-106,954Change of assumptions13,891-13,891Transfer of liability(1,853,193)- (1,853,193)Benefit payments, including refunds ofemployee contributions(667,212)(667,212)-Contributions - employer-235,978(235,978)Contributions - employee-89,235(89,235)Net investment income-59,469(59,469)Other (net transfer)-(1,612,386)1,612,386Balances at December 31, 2015$ 11,696,692$ 10,169,928$ 1,526,764Total:Balances at December 31, 2014 $ 109,260,570 $ 101,899,686 $ 7,360,884Service cost 1,757,974 - 1,757,974Interest on total pension liability 8,038,412 - 8,038,412Differences between expected and actualexperience of the total pension liability903,336 - 903,336Change of assumptions 117,327 - 117,327Transfer of liability (15,652,070) - (15,652,070)Benefit payments, including refunds ofemployee contributions(5,635,277) (5,635,277) -Contributions - employer - 1,993,073 (1,993,073)Contributions - employee - 753,679 (753,679)Net investment income - 502,277 (502,277)Other (net transfer) -(13,618,216)13,618,216Balances at December 31, 2015$ 98,790,272$ 85,895,222$ 12,895,050Pension expense and deferred outflows of resources and deferred inflows of resources relatedto pensions.For the year ended April 30, 2016, the City recognized pension expense of $2,515,161.The City reported deferred outflows and inflows of resources related to pension from the followingsources:Page 68CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)DeferredOutflows ofResourcesDeferredInflows ofResourcesCity:Difference between expected and actual experience$ 549,794 $ 104,269Assumption changes1,190,708-Net difference between projected and actual earnings on pensionplan investments5,678,431-Contributions subsequent to the measurement date503,281-Total$ 7,922,214$ 104,269Library:Difference between expected and actual experience $ 73,837 $ 14,003Assumption changes159,913-Net difference between projected and actual earnings on pensionplan investments762,615-Contributions subsequent to the measurement date76,199-Total$ 1,072,564$ 14,003Total:Difference between expected and actual experience $ 623,631 $ 118,272Assumption changes1,350,621-Net difference between projected and actual earnings on pensionplan investments6,441,046-Contributions subsequent to the measurement date579,480-Total$ 8,994,778$ 118,272The amount reported as deferred outflows resulting from contributions subsequent to the measurementdate in the above table will be recognized as a reduction in the net pension liability/(asset) for the yearending April 30, 2016. The remaining amounts reported as deferred outflows and inflows of resourcesrelated to pensions ($8,297,026) will be recognized in pension expense as follows:Year Ending December 31, CityLibraryTotal2016$ 2,680,476 $ 359,989 $ 3,040,46520171,850,833 248,567 2,099,40020181,543,493 207,292 1,750,78520191,239,862166,5141,406,376Total$ 7,314,664$ 982,362$ 8,297,026Page 69157
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Police PensionPlan description. Police sworn personnel are covered by the Police Pension Plan, which is a definedbenefit single-employer pension plan. Although this is a single employer pension plan, the defined benefitsand employee and employer contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS5/3) and may be amended only by the Illinois legislature. The City accounts for the plan as a pension trustfund.As provided for in the Illinois Compiled Statutes, the Plan provides retirement benefits as well as deathand disability benefits to employees grouped into two tiers. Tier 1 is for employees hired prior to January 1,2011 and Tier 2 is for employees hired after that date. The following is a summary of the Police PensionFund as provided for in Illinois Compiled Statutes.Tier 1 - Covered employees attaining the age of 50 or more with 20 or more years of creditable service areentitled to receive an annual retirement benefit of one half of the salary attached to the rank on the lastday of service, or for one year prior to the last day, whichever is greater. The pension shall be increasedby 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of75% of such salary. Employees with at least 8 years but less than 20 years of credited service may retireat or after age 60 and receive a reduced retirement benefit. The monthly pension of a police officer whoretired with 20 or more years of service after January 1, 1977 shall be increased annually, following thefirst anniversary date of retirement and paid upon reaching at least the age 55, by 3% of the originalpension and 3% compounded annually thereafterTier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service areentitled to receive a monthly pension of 2.5% of the final average salary for each year of creditableservice. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75%of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50and receive a reduced retirement benefit. The monthly pension of a police shall be increased annually onthe January 1 occurring either on or after the attainment of age 60 or the first anniversary of the pensionstart date, whichever is later. Each annual increase shall be calculated at 3% or onehalf the annualunadjusted percentage increase in the CPI, whichever is lessPlan membership. At April 30, 2016, the Police Pension membership consisted of:Retirees and beneficiaries39Inactive, non-retired members7Active members40Total86Page 70CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Police Pension (cont.)Contributions. Covered employees are required to contribute 9.91% of their base salary to the PolicePension Plan. If an employee leaves covered employment with less than 20 years of service, accumulatedemployee contributions may be refunded without accumulated interest. The City is required to contributethe remaining amounts necessary to finance the plans as actuarially determined by an enrolled actuary.Effective January 1, 2011 the City’s contributions must accumulate to the point where the past servicecost for the Police Pension Plan is 90% funded by the year 2040. The City's actuarially determinedcontribution rate for the fiscal year ending April 30, 2016 was 48.04% of annual covered payroll.Net Pension Liability. The net pension liability was measured as of April 30, 2016, and the total pensionliability used to calculate the net pension liability was determined by an annual actuarial valuation as ofthat date.Summary of Significant Accounting Policies. The financial statements of the Police Pension Plan areprepared using the accrual basis of accounting. Plan member contributions are recognized in the period inwhich contributions are due. The City’s contributions are recognized when due and a formal commitmentto provide the contributions are made. Benefits and refunds are recognized when due and payable inaccordance with the terms of the plan.Plan investments are reported at fair value. Short-term investments are reported at cost, whichapproximated fair value. Investments that do not have an established market are reported at estimatedfair values.Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed asof April 30, 2016 using the following actuarial methods and assumptions:Actuarial cost methodEntry Age NormalAsset valuation methodMarket ValueActuarial assumptionsInterest rate 7.00%Inflation 2.50%Projected salary increases 5.50%Cost-of-living adjustments Tier 1 - 3.00%Tier 2 - 1.25%Mortality rates were based on the RP-2000 Combined Healthy Mortality Table with a blue collaradjustment and no projection and the RP-2000 Disabled Retiree Mortality table with no projection. Theactuarial assumptions were based on the results of an actuarial experience study conducted by theIllinois Department of Insurance in 2012.Page 71158
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Police Pension (cont.)Long-term expected real rate of return. See Note I.D.1 for police pension fund investment policy,including target allocation and long-term expected real rate of returns.Discount rate. The discount rate used to measure the total pension liability for the Police Pension Planwas 7.00%, the same as the prior valuation. The projection of cash flows used to determine the discountrate assumed that member contributions will be made at the current contribution rate and that Citycontributions will be made at rates equal to the difference between actuarially determined contributionrates and the member rate. Based on those assumptions, the Plan’s fiduciary net position was projectedto be available to make all projected future benefit payments of current plan members. Therefore, thelong-term expected rate of return on Plan investments was applied to all periods of projected benefitpayments to determine the total pension liability.Discount rate sensitivity.The following is a sensitivity analysis of the net pension liability to changes inthe discount rate. The table below presents the pension liability of the City calculated using the discountrate of 7.00% as well as what the net pension liability would be if it were to be calculated using adiscount rate that is 1 percentage point lower (6.00%) or 1 percentage point higher (8.00%) than thecurrent rate:1% DecreaseCurrentDiscount Rate 1% IncreaseTotal pension liability$ 59,757,901$ 52,622,210$ 46,728,713Plan fiduciary net position 27,404,16327,404,16327,404,163Net pension liability$ 32,353,738$ 25,218,047$ 19,324,550Page 72CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Police Pension (cont.)Changes in net pension liability/(asset).The City's changes in net pension liability/(asset) for the fiscalyear ended April 30, 2016 was as follows:Increase (Decrease)Total PensionLiability (a)Plan FiduciaryNet Position(b)Net PensionLiability/Asset (a) - (b)Balances at May 1, 2015$ 52,530,895 $ 28,025,755 $ 24,505,140Service cost883,178- 883,178Interest on total pension liability3,657,765- 3,657,765Differences between expected and actualexperience of the total pension liability(2,129,040)- (2,129,040)Benefit payments, including refunds of employeecontributions(2,320,588) (2,320,588)-Contributions - employer- 1,806,270 (1,806,270)Contributions - employee- 373,216 (373,216)Net investment income- (475,655) 475,655Administrative expenses-(4,835)4,835Balances at April 30, 2016$ 52,622,210$ 27,404,163$ 25,218,047Pension expense and deferred outflows of resources and deferred inflows of resources relatedto pensions.For the year ended April 30, 2016, the City recognized pension expense of $2,361,236.The City reported deferred outflows and inflows of resources related to pension from the followingsources:DeferredOutflows ofResourcesDeferredInflows ofResourcesDifference between expected and actual experience$- $ 1,774,200Net difference between projected and actual earnings on pensionplan investments1,932,141-Total$ 1,932,141$ 1,774,200Page 73159
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Police Pension (cont.)The amounts reported as deferred outflows and inflows of resources related to pensions ($157,941) willbe recognized in pension expense as follows:Year Ending April 30,Amount2017$ 128,1962018128,1952019128,1952020128,1952021(354,840)Total$ 157,941Firefighters' PensionPlan description. Fire sworn personnel are covered by the Firefighters' Pension Plan, which is a definedbenefit single-employer pension plan. Although this is a single employer pension plan, the defined benefitsand employee and employer contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS5/3) and may be amended only by the Illinois legislature. The City accounts for the plan as a pension trustfund.As provided for in the Illinois Compiled Statutes, the Firefighters' Pension Plan provides retirementbenefits as well as death and disability benefits to employees grouped into two tiers. Tier 1 is foremployees hired prior to January 1, 2011 and Tier 2 is for employees hired after that date. The following isa summary of the Firefighters' Pension Plan as provided for in Illinois Compiled Statutes.Tier 1 - Covered employees attaining the age of 50 or more with 20 or more years of creditable service areentitled to receive a monthly retirement benefit of one half of the monthly salary attached to the rank heldin the fire service at the date of retirement. The monthly pension shall be increased by one twelfth of 2.5%of such monthly salary for each additional month over 20 years of service through 30 years of service to amaximum of 75% of such monthly salary. Employees with at least 10 years but less than 20 years ofcredited service may retire at or after age 60 and receive a reduced retirement benefit. The monthlypension of a firefighter who retired with 20 or more years of service after January 1, 1977 shall beincreased annually, following the first anniversary date of retirement and paid upon reaching at least theage 55, by 3% of the original pension and 3% compounded annually thereafter.Page 74CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Firefighters' Pension (cont.)Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service areentitled to receive a monthly pension of 2.5% of the final average salary for each year of creditableservice. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75%of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50and receive a reduced retirement benefit. The monthly pension of a firefighter shall be increased annuallyon the January 1 occurring either on or after the attainment of age 60 or the first anniversary of thepension start date, whichever is later. Each annual increase shall be calculated at 3% or one-half theannual unadjusted percentage increase in the CPI, whichever is less.Plan membership. At April 30, 2016, the Firefighters' Pension Plan membership consisted of:Retirees and beneficiaries37Inactive, non-retired members5Active members31Total73Contributions. Participants contribute a fixed percentage of their base salary to the plans. At April 30,2016, the contribution percentage was 9.455%. If a participant leaves covered employment with less than20 years of service, accumulated participant contributions may be refunded without accumulated interest.The City is required to contribute the remaining amounts necessary to finance the plans as actuariallydetermined by an enrolled actuary. Effective January 1, 2011, the City’s contributions must accumulate tothe point where the past service cost for the Firefighters' Pension Plan is 90% funded by the year 2040.The City's actuarially determined contribution rate for the fiscal year ending April 30, 2016 was 41.59% ofannual covered payroll. Net pension liability. The net pension liability was measured as of April 30,2016, and the total pensionliability used to calculate the net pension liability was determined by an annual actuarial valuation as ofthat date.Summary of significant accounting policies. The financial statements of the Firefighters' Pension Planare prepared using the accrual basis of accounting. Plan member contributions are recognized in theperiod in which contributions are due. The City’s contributions are recognized when due and a formalcommitment to provide the contributions are made. Benefits and refunds are recognized when due andpayable in accordance with the terms of the plan.Plan investments are reported at fair value. Short-term investments are reported at cost, whichapproximated fair value. Investments that do not have an established market are reported at estimatedfair values.Page 75160
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Firefighters' Pension (cont.)Actuarial assumptions. The total pension liability was determined by an actuarial valuation performed asof April 30, 2016 using the following actuarial methods and assumptions:Actuarial cost methodEntry Age NormalAsset valuation methodMarket ValueActuarial assumptionsInterest rate 7.00%Inflation 2.50%Projected salary increases 5.50%Cost-of-living adjustments Tier 1 - 3.00%Tier 2 - 1.25%Mortality rates were based on the RP-2000 Combined Healthy Mortality Table with a blue collaradjustment and no projection and the RP-2000 Disabled Retiree Mortality Table with no projection. Theactuarial assumptions were based on the results of an actuarial experience study conducted by theIllinois Department of Insurance in 2012.Long-term expected real rate of return. Seen Note I.D. 1 for Firefighters' Pension Fund investmentpolicy, including target allocation and long-term expected real rate of return.Discount rate. The discount rate used to measure the total pension liability for the Firefighters' PensionPlan was 7.00%, the same as the prior valuation. The projection of cash flows used to determine thediscount rate assumed that member contributions will be made at the current contribution rate and thatCity contributions will be made at rates equal to the difference between actuarially determinedcontribution rates and the member rate. Based on those assumptions, the Plan’s fiduciary net positionwas projected to be available to make all projected future benefit payments of current plan members.Therefore, the long-term expected rate of return on Plan investments was applied to all periods ofprojected benefit payments to determine the total pension liability.Page 76CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Firefighters' Pension (cont.)Discount rate sensitivity.The following is a sensitivity analysis of the net pension liability to changes inthe discount rate. The table below presents the pension liability of the City calculated using the discountrate of 7.00% as well as what the net pension liability would be if it were to be calculated using adiscount rate that is 1 percentage point lower (6.00%) or 1 percentage point higher (8.00%) than thecurrent rate:1% DecreaseCurrentDiscount Rate 1% IncreaseTotal pension liability$ 51,990,610$ 45,820,158$ 40,734,986Plan fiduciary net position 31,897,07431,897,07431,897,074Net pension liability$ 20,093,536$ 13,923,084$ 8,837,912Changes in net pension liability/(asset).The City's changes in net pension liability/(asset) for the fiscalyear ended April 30, 2016 was as follows:Increase (Decrease)Total PensionLiability (a)Plan FiduciaryNet Position(b)Net PensionLiability/Asset (a) - (b)Balances at May 1, 2015$ 43,938,314 $ 32,257,990 $ 11,680,324Service cost926,420- 926,420Interest on total pension liability3,072,945- 3,072,945Differences between expected and actualexperience of the total pension liability(186,474)- (186,474)Benefit payments, including refunds of employeecontributions(1,931,047) (1,931,047)-Contributions - employer- 1,216,585 (1,216,585)Contributions - employee- 298,046 (298,046)Net investment income- 60,335 (60,335)Administration-(4,835)4,835Balances at April 30, 2016$ 45,820,158$ 31,897,074$ 13,923,084Page 77161
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Firefighters' Pension (cont.)Pension expense and deferred outflows of resources and deferred inflows of resources relatedto pensions.For the year ended April 30, 2016, the City recognized pension expense of $1,893,408.The City reported deferred outflows and inflows of resources related to pension from the followingsources:DeferredOutflows ofResourcesDeferredInflows ofResourcesDifference between expected and actual experience$- $ 155,395Assumption changes--Net difference between projected and actual earnings on pensionplan investments1,721,332-Total$ 1,721,332$ 155,395The amounts reported as deferred outflows and inflows of resources related to pensions ($1,565,937)will be recognized in pension expense as follows:Year Ending April 30,Amount2017$ 399,2542018399,2542019399,2542020399,2542021(31,079)Total$ 1,565,937Page 78CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)PENSION SEGMENT INFORMATIONFiduciary Net PositionPension TrustPolicePensionFirefighters'PensionTotalAssetsCash $ 3,284 $ 9,105 $ 12,389Money markets 206,800 1,013,613 1,220,413InvestmentsU.S. treasury obligations 9,388,651 2,978,653 12,367,304U.S. government agencies 561,984 3,273,789 3,835,773Municipal/corporate bonds 1,078,672 6,156,158 7,234,830Equity mutual funds 13,179,094 18,352,27731,531,371Real estate investment fund 1,731,650 - 1,731,650Common stock 1,196,746 - 1,196,746Prepaids 13,084 9,169 22,253Other 54,318107,158161,476 Total Assets27,414,28331,899,92259,314,205LiabilitiesAccounts payable10,1202,84812,968 Total Liabilities10,1202,84812,968Net PositionRestricted for pension benefits$ 27,404,163$ 31,897,074$ 59,301,237Page 79162
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Changes in Plan Net PositionPension TrustPolice PensionFirefighters'PensionTotalAdditionsContributionsEmployer $ 1,806,270 $ 1,216,585 $ 3,022,855Employee 373,216 297,946 671,162Miscellaneous revenues 3,2111003,311 Total Contributions2,182,6971,514,6313,697,328Investment IncomeInterest 488,783 775,613 1,264,396Net appreciation (depreciation) in fair value ofinvestments(854,895)(623,694)(1,478,589)Total Investment income(366,112) 151,919 (214,193)Less Investment expense (112,754)(91,584)(204,338) Net investment income(478,866)60,335(418,531) Total Additions1,703,8311,574,9663,278,797DeductionsPension benefits and refunds 2,320,588 1,931,047 4,251,635Other administrative expenses 4,8354,8359,670 Total Deductions2,325,4231,935,8824,261,305Change in net position(621,592) (360,916) (982,508)Net position, beginning of year28,025,75532,257,99060,283,745Net position, end of year$ 27,404,163$ 31,897,074$ 59,301,237B. RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets;errors and omissions; injuries to employees; and natural disasters. The City accounts for its risk of loss inthe Liability Insurance Fund through payments to the Intergovernmental Risk Management Agency.Page 80CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)B. RISK MANAGEMENT(cont.)Public Entity Risk PoolIRMAThe City participates in the Intergovernmental Risk Management Agency (IRMA). IRMA is an organizationof municipalities and special districts in Northeastern Illinois that have formed an association under theIllinois Intergovernmental Co-operations Statute to pool their risk management needs. The agencyadministers a mix of self-insurance and commercial insurance coverages; property/casualty and workers’compensation claim administration/litigation management services; unemployment claim administration;extensive risk management/loss control consulting and training programs; and a risk information systemand financial reporting service for its members.The City’s payments to IRMA are displayed on the financial statements as expenditures/expenses inappropriate funds. The City assumes the first $25,000 of each occurrence, and IRMA has a mix of self-insurance and commercial insurance at various amounts above that level.Each member appoints one delegate, along with an alternate delegate, to represent the member on theBoard of Directors. The City does not exercise any control over the activities of IRMA beyond itsrepresentation on the Board of Directors.Initial contributions are determined each year based on the individual member’s eligible revenue asdefined in the bylaws of IRMA and experience modification factors based on past member lossexperience. Members have a contractual obligation to fund any deficit of IRMA attributable to anymembership year during which they were a member. Supplemental contributions may be required to fundthese deficits.Beginning of Claims and End ofFiscal Year Changes in Claim Fiscal YearLiabilityEstimatesPaymentsLiability2014-2015 $ 148,981 $ 379,331 $ 383,487 $ 144,8252015-2016 144,825 224,277 213,438 155,664City of Lake Forest Medical and Dental PlanThe City established the City of Lake Forest Medical and Dental Plan, a self-insurance plan providinghealth insurance for all employees of the City, effective January 1, 2000. Administration of the Plan isprovided by Professional Benefit Administrators, Inc. (an outside agency). Liabilities are reported when it isprobable that a loss has been incurred and the amount of the loss can be reasonably estimated. Anexcess coverage insurance policy covers total claims in excess of $100,000 per participant in a plan year.Liabilities include all amounts for claims, including incremental costs that have been incurred but notreported (IBNR) and are reported in the Self Insurance Fund (internal service fund). The City has not hadsignificant reductions in insurance coverage in any of the last three years.Page 81163
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)B. RISK MANAGEMENT(cont.)Public Entity Risk Pool (cont.)Changes in the balances of claims liabilities for the years ended April 30, 2016 and 2015 are as follows:Beginning ofEnd ofFiscal Year Changes in Claim Fiscal YearLiabilityEstimatesPaymentsLiability2014-2015 $ 528,649 $ 5,176,240 $ 4,888,995 $ 815,8942015-2016 815,894 5,186,100 5,421,177 580,817The City has also purchased insurance from private insurance companies. For insured programs, therehave been no significant reductions in insurance coverage. For all programs, settlement amounts have notexceeded insurance coverage for the current or three prior years.C. JOINT VENTURES Solid Waste Agency of Lake CountyThe City of Lake Forest, the Great Lakes Naval Training Center, Lake County, and 41 other municipalitiesjointly operate the Solid Waste Agency of Lake County, (the Agency). The purpose of the Agency is toimplement a regional approach to solid waste management which addresses the economic, political, andenvironmental issues in Lake County.The Agency is governed by a Board of Directors consisting of one official elected by each member. Eachdirector has one vote. The governing body has authority to adopt its own budget and control the financialaffairs of the the Agency. The Executive Committee of the Agency consists of nine members of the Boardof Directors elected by the Board. Each member is entitled to one vote on the committee. The ExecutiveCommittee may take any action not specifically reserved on the Board of Directors by the Act, the Agencyagreement, or the by-laws.The City does not have an equity interest in the Agency although there does exist a residual interest in theAgency's assets upon dissolution of the joint venture. The City has an ongoing financial responsibility forits share of the Agency's liabilities. Each participant is liable for their share of any of the Agency'scontracts entered into while bound by the intergovernmental agreement until those contracts are paid off.To obtain the Agency's financial statements, contract the Solid Waste Agency of Lake County, Illinois, at1311 N. Estes Street, Gurnee, Illinois 60031.Page 82CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)C. JOINT VENTURES (cont.)Northern Suburban Special Recreation AssociationThe City is a member of the Northern Suburban Special Recreation Association (NSSRA), which wasorganized by ten organizations in order to provide special recreation programs to the physically andmentally handicapped within their districts and to share the expenses of such programs on a cooperativebasis. Each member's 1999 contribution was determined based upon the ratio of the members' assessedvaluations.The NSSRA is governed by a Board of Directors which consists of one representative from eachparticipating organization. Each Director has an equal vote. The representatives of NSSRA are appointedby the Board of Directors. The Board of Directors is the governing body of the NSSRA and is responsiblefor establishing all major policies and changes therein and for approving all budgets, capital outlay,programming, and master plans.The City does not have an equity interest in NSSRA although there does exist a residual interest inNSSRA's assets upon dissolution of the joint venture. The City has an ongoing financial responsibility forits share of the NSSRA's liabilities. Each participant is liable for their share of any of the NSSRA contractsentered into while bound by the intergovernmental agreement until those contracts are paid off.To obtain NSSRA's financial statements, contact Northern Suburban Special Recreation Association at3105 MacArthur Blvd., Northbrook, Illinois 60062.D. COMMITMENTS AND CONTINGENCIES The City has outstanding construction contracts with contractors totaling $178,878 at April 30, 2016. Workthat has been completed on these projects but not yet paid for (including contract retainages) is reflectedas accounts payable and expenditures.Page 83164
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)E. OTHER POSTEMPLOYMENT BENEFITS Plan DescriptionIn addition to providing the pension benefits described in Note IV. A., the City and Library (hereinafter City)provide post-employment health care benefits (OPEB) for retired employees. Hereinafter, the medical anddental plan benefits offered are referred to as the "Plan." The Plan offers several medical and dentalinsurance benefits options to eligible retirees and their dependents. The benefits, benefit levels, employeecontributions and employer contributions are governed by the City Council and can only be amended bythe City Council. The Plan is not accounted for as a trust fund and an irrevocable trust has not beenestablished. The City does not issue a Plan financial report. Funding PolicyThe contribution requirements of plan members and the City are established and may be amended by theCity Council and are detailed in the various plan benefit booklets provided to employees. The requiredcontribution is based on projected pay-as-you-go financing requirements. For fiscal year 2016 the Citycontributed $185,185, representing current premiums. The City’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annualrequired contribution of the employer (ARC), an amount actuarially determined in accordance with theparameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoingbasis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (orfunding excess) over a period not to exceed thirty years. The following table shows the components of theCity’s annual OPEB cost for the year, the amount actually contributed to plan, and changes in the City’snet OPEB obligation to the Retiree Health Plan:CityLibraryAnnual required contribution$ 232,335 $ 23,831Interest on net OPEB obligation9,1791,245Adjustment to annual required contribution(7,649)(1,037)Annual OPEB cost233,86524,039Contributions made(178,803)(6,382)Increase in net OPEB obligation55,06217,657Net OPEB Obligation - Beginning of Year229,47631,114Net OPEB Obligation - End of Year$ 284,538$ 48,711Page 84CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)E. OTHER POSTEMPLOYMENT BENEFITS(cont.)The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the netOPEB obligation for 2016 and the two preceding years were as follows:Fiscal Year EndedAnnual OPEBCostPercentage ofAnnual OPEBCostContributedNet OPEBObligationCity:April 30, 2014 $ 146,631 100.30 $ 201,037April 30, 2015224,73987.30 229,476April 30, 2016233,86576.46 284,538Library:April 30, 2014 $ 3,8420.00 $ 12,212April 30, 201522,99617.80 31,114April 30, 201624,03926.55 48,771The funded status of the plan as of April 30, 2015, the most recent actuarial valuation date, was asfollows:CityLibraryActuarial accrued liability (AAL)$ 3,786,380 $ 272,766Actuarial value of plan assets--Unfunded Actuarial Accrued Liability (UAAL) $ 3,786,380$ 272,766Funded ratio (actuarial value of plan assets/AAL)-%-%Covered payroll (active plan members)$ 18,087,734 $ 1,288,196UAAL as a percentage of covered payroll20.93%21.17%The projection of future benefit payments for an ongoing plan involves estimates for the value of reportedamounts and assumptions about the probability of occurrence of events far into the future. Examplesinclude assumptions about future employment, mortality, and the healthcare cost trend. Amountsdetermined regarding the funded status of the plan and annual required contributions of the employer aresubject to continual revision as actual results are compared with past expectations and new estimates aremade about the future. The schedule of funding progress, presented as required supplementaryinformation following the notes to the financial statements, presents multiyear trend information that showswhether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarialaccrued liabilities for benefits.Page 85165
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)E. OTHER POSTEMPLOYMENT BENEFITS(cont.)Projections of benefits for financial reporting purposes are based on the substantive plan (the plan asunderstood by the employer and plan members) and include the types of benefits provided at the time ofeach valuation and the historical pattern of sharing benefit costs between the employer and plan membersto that point. The methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-termperspective of the calculations.In the April 30, 2015, actuarial valuation, the entry age actuarial cost method was used. The actuarialassumptions included a 4.0 percent investment rate of return (net of administrative expenses), which is ablended rate of the expected long-term investment returns on plan assets and on the employer's owninvestments calculated based on the funded level of the plan at the valuation date, and an annualhealthcare cost trend rate of 10 percent initially, reduced by decrements to an ultimate rate of 5.5 percentultimately. Both rates included a 3.0 percent inflation assumption. The actuarial value of assets weredetermined using market value. The UAAL is being amortized as a level percentage of projected payrollon an open basis. The remaining amortization period at April 30, 2015 was 30 years.F. SUBSEQUENTEVENTS On September 23, 2016, the City sold land on Laurel Avenue for a sale price of $12,000,000. Thisproperty will be included in the City’s capital asset reductions for the fiscal year ending April 30, 2017. Page 86CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)G. EFFECT OF NEW ACCOUNTING STANDARDS ON CURRENT-PERIOD FINANCIAL STATEMENTS The Governmental Accounting Standards Board (GASB) has approved the following:!Statement No. 72, Fair Value Measurement and Application!Statement No. 73, Accounting and Financial Reporting for Pensions and Related AssetsThat Are Not Within the Scope of GASB Statement 68, and Amendments to CertainProvisions of GASB Statements 67 and 68!Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other ThanPension Plans!Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits OtherThan Pensions!Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State andLocal Government!Statement No. 77, Tax Abatement Disclosures!Statement No. 78, Pensions Provided Through Certain Multiple-Employer Defined BenefitPension Plans!Statement No. 79, Certain External Investment Pools and Pool Participants!Statement No. 80, Blending Requirements for Certain Component Units - an amendment ofGASB Statement No. 14!Statement No. 81, Irrevocable Split-Interest Agreements!Statement No. 82, Pension Issues - an amendment of GASB Statements No. 67, No. 68,and No. 73When they become effective, application of these standards may restate portions of these financialstatements.Page 87166
R E Q U I R E D S U P P L E M E N T A R Y I N F O R M A T I O NCITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND For the Year Ended April 30, 2016Original andFinal BudgetActualVariance withFinal BudgetREVENUESTaxesProperty$ 17,461,587 $ 17,430,405 $ (31,182)Other taxes 3,444,211 2,885,141 (559,070)Intergovernmental 6,540,840 6,145,512 (395,328)Charges for services 2,757,298 3,074,032 316,734Licenses and permits 5,732,312 5,222,568 (509,744)Fines, forfeitures and penalties 265,000 254,563 (10,437)Investment income 70,430 99,319 28,889Miscellaneous 655,468777,621122,153Total Revenues36,927,14635,889,161(1,037,985)EXPENDITURESCurrentGeneral government 11,011,088 9,624,910 1,386,178Highways and streets 2,539,069 2,157,463 381,606Sanitation 2,273,888 2,276,433 (2,545)Public safety15,219,452 14,879,565 339,887Capital Outlay1,132,420 1,789,865 (657,445)Debt ServicePrincipal retirement - 173,360 (173,360)Contingency3,357,150-3,357,150Total Expenditures35,533,06730,901,5964,631,471Excess (deficiency) of revenues over (under)expenditures 1,394,0794,987,5653,593,486OTHER FINANCING SOURCES (USES)Transfers out (1,795,962) (2,551,741) (755,779)Loan proceeds -830,080830,080Total Other Financing Sources (Uses)(1,795,962)(1,721,661)74,301Net Change in Fund Balance$ (401,883)3,265,904$ 3,667,787FUND BALANCE - Beginning of Year20,516,289FUND BALANCE - END OF YEAR$ 23,782,193See independent auditors' report and accompanying notes to required supplementary information.Page 88167
CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE - BUDGET AND ACTUAL - PARKS AND RECREATION FUNDFor the Year Ended April 30, 2016Original andFinal BudgetActualVariance withFinal BudgetREVENUESProperty taxes $ 5,317,253 $ 5,312,553 $ (4,700)Intergovernmental 18,500 32,203 13,703Grants and contributions 158,700 232,426 73,726Charges for services 3,134,346 2,742,899 (391,447)Investment income 26,891 23,261 (3,630)Miscellaneous 9,0001,511(7,489)Total Revenues8,664,6908,344,853(319,837)EXPENDITURESCurrentCulture and recreation8,436,941 7,864,490 572,451Capital Outlay760,203 560,480 199,723Contingency899,242-899,242Total Expenditures10,096,3868,424,9701,671,416Excess (deficiency) of revenues over (under)expenditures (1,431,696)(80,117)1,351,579OTHER FINANCING SOURCES (USES)Proceeds from capital asset sales - 1,573 1,573Transfers in 379,021 381,021 2,000Transfers out (57,000)(46,000)11,000Total Other Financing Sources (Uses)322,021336,59414,573Net Change in Fund Balance$ (1,109,675)256,477$ 1,366,152FUND BALANCE - Beginning of Year2,766,279FUND BALANCE - END OF YEAR$ 3,022,756See independent auditors' report and accompanying notes to required supplementary information.Page 896HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGDFFRPSDQ\LQJQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQ 3DJH CITY OF LAKE FORESTILLINOIS MUNICIPAL RETIREMENT FUND6&+('8/(2)&+$1*(6,17+(&,7<
61(73(16,21/,$%,/,7<$1'5(/$7('5$7,260RVW5HFHQW)LVFDO<HDUCityLibraryTotalTotal pension liability6HUYLFHFRVW ,QWHUHVW 'LIIHUHQFHVEHWZHHQH[SHFWHGDQGDFWXDOH[SHULHQFH &KDQJHVRIDVVXPSWLRQV 7UDQVIHURIOLDELOLW\ %HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRIPHPEHUFRQWULEXWLRQV Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position(PSOR\HUFRQWULEXWLRQV (PSOR\HHFRQWULEXWLRQV 1HWLQYHVWPHQWLQFRPH %HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRIPHPEHUFRQWULEWXLRQV 2WKHU QHWWUDQVIHU Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) Employer's net pension liability - ending (a) - (b) Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employer's net pension liability as a percentage of covered-employee payroll Notes to Schedule:7KH&LW\LPSOHPHQWHG*$6%6WDWHPHQW1RLQILVFDO\HDU,QIRUPDWLRQSULRUWRILVFDO\HDULVQRWDYDLODEOH2016168
6HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGDFFRPSDQ\LQJQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQ 3DJH CITY OF LAKE FORESTILLINOIS MUNICIPAL RETIREMENT FUND6&+('8/(2)(03/2<(5&2175,%87,2160RVW5HFHQW)LVFDO<HDUCityLibraryTotal$FWXDULDOO\GHWHUPLQHGFRQWULEXWLRQ &RQWULEXWLRQVLQUHODWLRQWRWKHDFWXDULDOO\GHWHUPLQHGFRQWULEXWLRQ &RQWULEXWLRQGHILFLHQF\ H[FHVV &RYHUHGHPSOR\HHSD\UROO &RQWULEXWLRQVDVDSHUFHQWDJHRIFRYHUHGHPSOR\HHSD\UROONotes to Schedule:9DOXDWLRQGDWH 0HWKRGVDQGDVVXPSWLRQVXVHGWRGHWHUPLQHFRQWULEXWLRQUDWHV $FWXDULDOFRVWPHWKRG$PRUWL]DWLRQPHWKRG5HPDLQLQJDPRUWL]DWLRQSHULRG$VVHWYDOXDWLRQPHWKRG,QIODWLRQ6DODU\LQFUHDVHV,QYHVWPHQWUDWHRIUHWXUQ5HWLUHPHQW$JH0RUWDOLW\53&+%&$2WKHULQIRUPDWLRQ 7KHUHZHUHQREHQHILWFKDQJHVGXULQJWKH\HDU2016WRLQFOXGLQJLQIODWLRQ([SHULHQFHEDVHGWDEOHRIUDWHVWKDWDUHVSHFLILFWRWKHW\SHRIHOLJLELOLW\FRQGLWLRQ$FWXDULDOO\GHWHUPLQHGFRQWULEXWLRQUDWHVDUHFDOFXODWHGDVRI'HFHPEHURIWKH\HDUSULRUWRWKHILVFDO\HDULQZKLFKFRQWULEXWLRQVDUHUHSRUWHG7KH&LW\LPSOHPHQWHG*$6%6WDWHPHQW1RLQILVFDO\HDU,QIRUPDWLRQSULRUWRILVFDO\HDULVQRWDYDLODEOH(QWU\DJHQRUPDO/HYHOSHUFHQWDJHRISD\UROOFORVHG \HDUV<HDU6PRRWKHG0DUNHW6HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQ 3DJH 20152016Total pension liability6HUYLFHFRVW ,QWHUHVW 'LIIHUHQFHVEHWZHHQH[SHFWHGDQGDFWXDOH[SHULHQFH &KDQJHVRIDVVXPSWLRQV %HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRIPHPEHUFRQWULEXWLRQV 2WKHU Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position(PSOR\HUFRQWULEXWLRQV (PSOR\HHFRQWULEXWLRQV1HWLQYHVWPHQWLQFRPH %HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRIPHPEHUFRQWULEXWLRQV $GPLQLVWUDWLYHH[SHQVHV Net change in plan fiduciary net position Plan fiduciary net position - beginningPlan fiduciary net position - ending (b)City's net pension liability - ending (a) - (b)Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll City's net pension liability as a percentage of covered-employee payroll Notes to Schedule:7KH3HQVLRQLPSOHPHQWHG*$6%6WDWHPHQW1RLQILVFDO\HDU,QIRUPDWLRQSULRUWRILVFDO\HDULVQRWDYDLODEOHCITY OF LAKE FORESTPOLICE PENSION FUND6&+('8/(2)&+$1*(6,17+(&,7<
61(73(16,21/,$%,/,7<$1'5(/$7('5$7,26/DVW7ZR)LVFDO<HDUVChanges of assumptions.)RU)LVFDO<HDUWKHPRUWDOLW\GLVDELOLW\WXUQRYHUDQGUHWLUHPHQWDVVXPSWLRQVZHUHUHYLVHGWRUHIOHFWWKHPRVWUHFHQWVWXG\FRQGXFWHGE\WKH,OOLQRLV'HSDUWPHQWRI,QVXUDQFH169
6HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQ 3DJH CITY OF LAKE FORESTPOLICE PENSION FUND6&+('8/(2)(03/2<(5&2175,%87,216/DVW7HQ)LVFDO<HDUV2007200820092010$FWXDULDOO\GHWHUPLQHGFRQWULEXWLRQ &RQWULEXWLRQVLQUHODWLRQWRWKHDFWXDULDOO\GHWHUPLQHGFRQWULEXWLRQ &RQWULEXWLRQGHILFLHQF\ H[FHVV &RYHUHGHPSOR\HHSD\UROO &RQWULEXWLRQVDVDSHUFHQWDJHRIFRYHUHGHPSOR\HHSD\UROO Notes to Schedule:9DOXDWLRQGDWH $FWXDULDOO\GHWHUPLQHGFRQWULEXWLRQVDUHFDOFXODWHGDVRI0D\RIWKHFXUUHQWILVFDO\HDU0HWKRGVDQGDVVXPSWLRQVXVHGWRGHWHUPLQHFRQWULEXWLRQUDWHV $FWXDULDOFRVWPHWKRG$PRUWL]DWLRQPHWKRG5HPDLQLQJDPRUWL]DWLRQSHULRG$VVHWYDOXDWLRQPHWKRG6DODU\LQFUHDVHV,QYHVWPHQWUDWHRIUHWXUQ5HWLUHPHQWDJH0RUWDOLW\7KH3HQVLRQLPSOHPHQWHG*$6%6WDWHPHQW1RLQILVFDO\HDU,QIRUPDWLRQSULRUWRILVFDO\HDULVGHULYHGIURPDFWXDULDOYDOXDWLRQVGHYHORSHGLQFRQIRUPLW\ZLWK*$6%6WDWHPHQW1RDQG0RUWDOLW\UDWHVZHUHEDVHGRQWKH530RUWDOLW\7DEOH(QWU\DJHQRUPDO/HYHOSHUFHQWDJHRISD\UROOFORVHG\HDUV0DUNHWYDOXHQHWRISHQVLRQSODQLQYHVWPHQWH[SHQVH6HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQ 3DJH 201120122013201420152016 170
6HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQ 3DJH 20152016$QQXDOPRQH\ZHLJKWHGUDWHRIUHWXUQQHWRILQYHVWPHQWH[SHQVH Notes to Schedule:7KH3HQVLRQLPSOHPHQWHG*$6%6WDWHPHQW1RLQILVFDO\HDU,QIRUPDWLRQSULRUWRILVFDO\HDULVQRWDYDLODEOHCITY OF LAKE FORESTPOLICE PENSION FUND6&+('8/(2),19(670(175(78516/DVW7ZR)LVFDO<HDUV6HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQ 3DJH 20152016Total pension liability6HUYLFHFRVW ,QWHUHVW 'LIIHUHQFHVEHWZHHQH[SHFWHGDQGDFWXDOH[SHULHQFH &KDQJHVRIDVVXPSWLRQV%HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRIPHPEHUFRQWULEXWLRQV Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position(PSOR\HUFRQWULEXWLRQV (PSOR\HHFRQWULEXWLRQV 1HWLQYHVWPHQWLQFRPH0LVFHOODQHRXVUHYHQXH%HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRIPHPEHUFRQWULEXWLRQV $GPLQLVWUDWLYHH[SHQVHV Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) City's net pension liability - ending (a) - (b) Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll City's net pension liability as a percentage of covered-employee payroll Notes to Schedule:7KH3HQVLRQLPSOHPHQWHG*$6%6WDWHPHQW1RLQILVFDO\HDU,QIRUPDWLRQSULRUWRILVFDO\HDULVQRWDYDLODEOHChanges of assumptions.)RU)LVFDO<HDUWKHPRUWDOLW\GLVDELOLW\WXUQRYHUDQGUHWLUHPHQWDVVXPSWLRQVZHUHUHYLVHGWRUHIOHFWWKHPRVWUHFHQWVWXG\FRQGXFWHGE\WKH,OOLQRLV'HSDUWPHQWRI,QVXUDQFHCITY OF LAKE FORESTFIREFIGHTERS' PENSION FUND6&+('8/(2)&+$1*(6,17+(&,7<
61(73(16,21/,$%,/,7<$1'5(/$7('5$7,26/DVW7ZR)LVFDO<HDUV171
6HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQ 3DJH CITY OF LAKE FORESTFIREFIGHTERS' PENSION FUND6&+('8/(2)(03/2<(5&2175,%87,216/DVW7HQ)LVFDO<HDUV2007200820092010$FWXDULDOO\GHWHUPLQHGFRQWULEXWLRQ &RQWULEXWLRQVLQUHODWLRQWRWKHDFWXDULDOO\GHWHUPLQHGFRQWULEXWLRQ &RQWULEXWLRQGHILFLHQF\ H[FHVV &RYHUHGHPSOR\HHSD\UROO &RQWULEXWLRQVDVDSHUFHQWDJHRIFRYHUHGHPSOR\HHSD\UROO Notes to Schedule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
UHSRUWDQGQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQ 3DJH 201120122013201420152016 172
6HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQ 3DJH 20152016$QQXDOPRQH\ZHLJKWHGUDWHRIUHWXUQQHWRILQYHVWPHQWH[SHQVHNotes to Schedule:7KH3HQVLRQLPSOHPHQWHG*$6%6WDWHPHQW1RLQILVFDO\HDU,QIRUPDWLRQSULRUWRILVFDO\HDULVQRWDYDLODEOHCITY OF LAKE FORESTFIREFIGHTERS' PENSION FUND6&+('8/(2),19(670(175(78516/DVW7ZR)LVFDO<HDUVCITY OF LAKE FORESTOTHER POSTEMPLOYMENT BENEFITS PLANSCHEDULE OF EMPLOYER CONTRIBUTIONS AND SCHEDULE OF FUNDING PROGRESSFor the Year EndedApril 30, 2016Schedule of Annual Required Contributions - CityYear EndedAnnualRequiredContributionPercentageContributed04/30/16$ 232,33577.0 %04/30/15223,39987.9 %04/30/14145,288101.2 %04/30/1394,95466.9 %04/30/1294,95471.2 %04/30/1189,201- %Schedule of Annual Required Contributions - LibraryYear EndedAnnualRequiredContributionPercentageContributed04/30/16$ 23,83126.8 %04/30/1522,91517.8 %04/30/143,7860.0 %04/30/132,7270.0 %04/30/122,7270.0 %04/30/112,7430.0 %Schedule of Funding Progress - CityActuarialValuationDateActuarial Valueof Assets(a)ActuarialAccruedLiability (AAL) -Entry Age(b)Unfunded AAL(UAAL) (b-a)FundedRatio (a/b)Covered Payroll(c)UAAL as aPercentage ofCoveredPayroll((b-a)/c)04/30/15 $- $ 3,786,380 $ 3,786,3800% $ 18,087,734 20.93%04/30/13- 2,363,491 2,363,4910% 16,930,261 13.96%04/30/11- 1,495,528 1,495,5280% 19,037,9217.86%Schedule of Funding Progress - LibraryActuarialValuationDateActuarial Valueof Assets(a)ActuarialAccruedLiability (AAL) -Entry Age(b)Unfunded AAL(UAAL) (b-a)FundedRatio (a/b)Covered Payroll(c)UAAL as aPercentage ofCoveredPayroll((b-a)/c)04/30/15 $- $ 272,766 $ 272,7660% $ 1,288,196 21.17%04/30/13-34,11334,1130% 1,306,9792.61%04/30/11-22,59022,5900% 1,246,6331.81%See independent auditors' report and accompanying notes to required supplementary information.Page 100173
CITY OF LAKE FORESTNOTES TO REQUIRED SUPPLEMENTARY INFORMATIONFor the Year Ended April 30, 2016BUDGETARY INFORMATIONBudgets for the General and major special revenue fund are adopted on a basis of accounting consistentwith accounting principles generally accepted in the United States of America (GAAP).See independent auditors' report.Page 101S U P P L E M E N T A R Y I N F O R M A T I O N174
Nonmajor Special Revenue FundsAsset Forfeiture Fund– This fund accounts for revenues received from drug arrests (convicted property). Used solely for drug prevention programs administered by the Lake Forest Police Department.Foreign Fire Insurance Tax Fund– This fund accounts for revenues received from the 2% tax on fire insurance companies. Administered by members of the Fire Department to benefit the Fire Department.Emergency Telephone Fund– This fund accounts for the operations and maintenance of the emergency 911 telephone system. Financing is provided by a specific monthly surcharge on customer telephone bills.Parks and Public Land Fund– This fund accounts for the revenues received from grants, contributions and the collection of open space fees. Such revenues are to be used to purchase or improve land.Motor Fuel Tax Fund– This fund accounts for the revenues received from the State of Illinois for the local share of the motor fuel tax collections.General Cemetery Fund– This fund accounts for the operations of the cemetery commission. Financing is provided by the proceeds from cemetery lot sales, user charges, and donations.Senior Resources Commission Fund– This fund accounts for gifts, activity fees, and investments used to finance senior citizens’ programs and activities.Housing Trust Fund– This fund accounts for half of the revenues received from the demolition tax. Revenues will be used for affordable housing projects in Lake Forest.Nonmajor Debt Service FundDebt Service Fund – This fund accounts for the principal and interest currently due on general obligation bonds.Nonmajor Capital Projects FundsRoute 60 Bridge Improvements Fund– This fund accounts for the pledged funds from various corporations and local governments to be used for the widening of the Route 60 Bridge over I-94.Route 60 Intersection Improvements Fund – This fund accounts for the monies received from corporations and state and federal grants used for the improvements to be made to the intersection at Route 60 and Field Drive.Laurel/Western Redevelopment TIF Fund – This fund accounts for tax increment revenues to be used for the improvements in the TIF district.Major Capital Projects FundCapital Improvements Fund – This fund accounts for revenues to be used to fund city building and infrastructure projects. __________________________________ THIS PAGE INTENTIONALLY LEFT BLANK _________________________________ 175
CITY OF LAKE FORESTCOMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSAs of April 30, 2016Special Revenue FundsAsset ForfeitureForeign FireInsurance TaxEmergencyTelephoneParks andPublic LandASSETSCash and cash equivalents $ 118,664 $ 3,498 $ 120,147 $ 464,717Investments - 182,950 - -Property held for resale - - - -Receivables (net)Property taxes - - - -Other556- 94,842-Due from other governments----Due from fiduciary funds----Prepaid items--28,539-TOTAL ASSETS$ 119,220$ 186,448$ 243,528$ 464,717LIABILITIES, DEFERRED INFLOWS OFRESOURCES, AND FUND BALANCESLiabilitiesAccounts payable$- $- $ 1,368 $ 15,668Accrued liabilities----Deposits----Total Liabilities--1,36815,668Deferred Inflows of ResourcesProperty taxes levied for a future period - - - -Unavailable revenues--19,000-Total Deferred Inflows of Resources--19,000-Fund BalancesNonspendable for prepaid items - - 28,539 -Nonspendable for property held for resale - - - -Restricted for culture and recreation - - - 449,049Restricted for highways and streets - - - -Restricted for public safety 119,220 186,448 194,621 -Restricted for cemetery perpetual care - - - -Restricted for affordable housing - - - -Restricted for capital projects - - - -Restricted for debt service purposes - - - -Assigned to capital project funds----Total Fund Balances119,220186,448223,160449,049TOTAL LIABILITIES, DEFERREDINFLOWS OF RESOURCES, ANDFUND BALANCES$ 119,220$ 186,448$ 243,528$ 464,717Page 102Special Revenue FundsDebt ServiceFundCapital Projects FundsMotor Fuel TaxGeneralCemeterySeniorResourcesCommissionHousing TrustDebt ServiceRoute 60BridgeImprovementsRoute 60IntersectionImprovements$ 758,234 $ 785,688 $ 137,142 $ 714,211 $ 1,677,012 $ 1,041,338 $ 414,715- 4,304,774 - - - - --------- - - - 2,389,682 - -9,519 77,573 26,624 - - - -44,094 - - - - - -- 18,382 - - - - --------$ 811,847$ 5,186,417$ 163,766$ 714,211$ 4,066,694$ 1,041,338$ 414,715$- $ 33,015 $ 18,969 $- $- $- $-- 10,1168,158-------12,000----43,13127,12712,000------- 2,389,682--9,5194,500-----9,5194,500--2,389,682----------------- - 136,639 - - - -802,328 - - - - - --------- 5,138,786 - - - - -- - - 702,211 - - --------- - - - 1,677,012 - ------1,041,338414,715802,3285,138,786136,639702,2111,677,0121,041,338414,715$ 811,847$ 5,186,417$ 163,766$ 714,211$ 4,066,694$ 1,041,338$ 414,715Page 103176
CITY OF LAKE FORESTCOMBINING BALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSAs of April 30, 2016Capital ProjectsFundsLaurel/WesternRedevelopmentTIFTotal NonmajorGovernmentalFundsASSETSCash and cash equivalents $ 1,938,492 $ 8,173,858Investments- 4,487,724Property held for resale 380,000 380,000Receivables (net)Property taxes- 2,389,682Other- 209,114Due from other governments - 44,094Due from fiduciary funds- 18,382Prepaid items-28,539TOTAL ASSETS$ 2,318,492$ 15,731,393LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCESLiabilitiesAccounts payable$ 1,238 $ 70,258Accrued liabilities- 18,274Deposits-12,000Total Liabilities1,238100,532Deferred Inflows of ResourcesProperty taxes levied for a future period - 2,389,682Unavailable revenues-33,019Total Deferred Inflows of Resources-2,422,701Fund BalancesNonspendable for prepaid items - 28,539Nonspendable for property held for resale 380,000 380,000Restricted for culture and recreation - 585,688Restricted for highways and streets - 802,328Restricted for public safety - 500,289Restricted for cemetery perpetual care - 5,138,786Restricted for affordable housing - 702,211Restricted for capital projects 1,937,254 1,937,254Restricted for debt service purposes - 1,677,012Assigned to capital project funds-1,456,053Total Fund Balances2,317,25413,208,160TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, ANDFUND BALANCES$ 2,318,492$ 15,731,393Page 104 __________________________________ THIS PAGE INTENTIONALLY LEFT BLANK _________________________________ 177
CITY OF LAKE FORESTCOMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDSFor the Year EndedApril 30, 2016Special Revenue FundsAssetForfeitureForeign FireInsurance TaxEmergencyTelephoneParks andPublic LandREVENUESTaxes:Property$-$-$-$-Other - - - -Intergovernmental 6,887 - - -Grants and contributions - - - 75,000Charges for services 31,500 111,766 250,815 348,934Fines, forfeitures and penalties 5,844 - - -Investment income 636 297 382 2,170Miscellaneous ----Total Revenues44,867112,063251,197426,104EXPENDITURESCurrentGeneral government - - - -Culture and recreation - - - -Public safety- 163,516 47,631-Capital Outlay52,756- 143,869 220,800Debt ServicePrincipal retirement----Interest and fiscal charges----Total Expenditures52,756163,516191,500220,800Excess (deficiency) of revenues overexpenditures (7,889)(51,453)59,697205,304OTHER FINANCING SOURCES (USES)General obligation bonds issued - - - -Premium on debt issued - - - -Proceeds from capital asset sales 3,800 - - -Transfers in - - - -Transfers out ----Total Other Financing Sources (Uses)3,800---Net Change in Fund Balances(4,089) (51,453) 59,697 205,304FUND BALANCES - Beginning of Year123,309237,901163,463243,745FUND BALANCES - END OF YEAR$ 119,220$ 186,448$ 223,160$ 449,049Page 105Special Revenue FundsDebt ServiceFundCapital Projects FundsMotor FuelTaxGeneralCemeterySeniorResourcesCommissionHousing TrustDebt ServiceRoute 60BridgeImprovementsRoute 60IntersectionImprovements$-$-$-$-$2,253,502$-$---- 72,000---495,591------14,958 12,135 201,194- 156,513--- 913,094 148,187-----------342 (69,107)690 3,552 12,165 5,233 2,084-27-----510,891856,149350,07175,5522,422,1805,2332,084- 648,602- 100,000 3,750---- 486,394-----------16,750---------- 1,618,219------1,293,634--16,750648,602486,394100,0002,915,603--494,141207,547(136,323)(24,448)(493,423)5,2332,084---------------------- - 184,168 - 662,413 - -----(297,580)----184,168-364,833--494,141 207,547 47,845 (24,448) (128,590) 5,233 2,084308,1874,931,23988,794726,6591,805,6021,036,105412,631$ 802,328$ 5,138,786$ 136,639$ 702,211$ 1,677,012$ 1,041,338$ 414,715Page 106178
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et Change in Fund Balances )81'%$/$1&(6%HJLQQLQJRI<HDU FUND BALANCES - END OF YEAR 3DJHCITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE - BUDGET AND ACTUAL - ASSET FORFEITURE FUND - NONMAJOR SPECIALREVENUE FUNDFor the Year Ended April 30, 2016Original andFinal BudgetActualVariance withFinal BudgetREVENUESIntergovernmental $ 10,500 $ 6,887 $ (3,613)Charges for services 12,000 31,500 19,500Fines, forfeitures and penalties - 5,844 5,844Investment income 380636256Total Revenues22,88044,86721,987EXPENDITURESCapital Outlay113,000 52,756 60,244Contingency11,300-11,300Total Expenditures124,30052,75671,544Excess (deficiency) of revenues over (under)expenditures (101,420)(7,889)93,531OTHER FINANCING SOURCES (USES)Proceeds from capital asset sales -3,8003,800Total Other Financing Sources (Uses)-3,8003,800Net Change in Fund Balance$ (101,420)(4,089)$ 97,331FUND BALANCE - Beginning of Year123,309FUND BALANCE - END OF YEAR$ 119,220Page 108179
CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE - BUDGET AND ACTUAL - FOREIGN FIRE INSURANCE TAX FUND - NONMAJORSPECIAL REVENUE FUNDFor the Year Ended April 30, 2016Original andFinal BudgetActualVariance withFinal BudgetREVENUESCharges for services $ 100,000 $ 111,766 $ 11,766Investment income 300297(3)Total Revenues100,300112,06311,763EXPENDITURESCurrentPublic safety200,000 163,516 36,484Contingency20,000-20,000Total Expenditures220,000163,51656,484Net Change in Fund Balance$ (119,700)(51,453)$ 68,247FUND BALANCE - Beginning of Year237,901FUND BALANCE - END OF YEAR$ 186,448Page 109CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE - BUDGET AND ACTUAL - EMERGENCY TELEPHONE FUND - NONMAJOR SPECIALREVENUE FUNDFor the Year Ended April 30, 2016Original andFinal BudgetActualVariance withFinal BudgetREVENUESCharges for services $ 281,249 $ 250,815 $ (30,434)Investment income 200382182Total Revenues281,449251,197(30,252)EXPENDITURESCurrentPublic safety42,568 47,631(5,063)Capital Outlay147,267 143,8693,398Contingency18,984-18,984Total Expenditures208,819191,50017,319Net Change in Fund Balance$ 72,63059,697$ (12,933)FUND BALANCE - Beginning of Year163,463FUND BALANCE - END OF YEAR$ 223,160Page 110180
CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE - BUDGET AND ACTUAL - PARKS AND PUBLIC LAND FUND - NONMAJOR SPECIALREVENUE FUNDFor the Year Ended April 30, 2016Original andFinal BudgetActualVariance withFinal BudgetREVENUESGrants and contributions $ 50,000 $ 75,000 $ 25,000Charges for services 94,008 348,934 254,926Investment income 1,4332,170737Total Revenues145,441426,104280,663EXPENDITURESCapital Outlay230,775 220,8009,975Contingency23,078-23,078Total Expenditures253,853220,80033,053Net Change in Fund Balance$ (108,412)205,304$ 313,716FUND BALANCE - Beginning of Year243,745FUND BALANCE - END OF YEAR$ 449,049Page 111CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE - BUDGET AND ACTUAL - MOTOR FUEL TAX FUND - NONMAJOR SPECIAL REVENUEFUNDFor the Year Ended April 30, 2016Original andFinal BudgetActualVariance withFinal BudgetREVENUESGrants and contributions $ 160,000 $ 14,958 $ (145,042)Intergovernmental 477,875 495,591 17,716Investment income 1,191342(849)Total Revenues639,066510,891(128,175)EXPENDITURESCapital Outlay260,000 16,750 243,250Contingency26,000-26,000Total Expenditures286,00016,750269,250Net Change in Fund Balance$ 353,066494,141$ 141,075FUND BALANCE - Beginning of Year308,187FUND BALANCE - END OF YEAR$ 802,328Page 112181
CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE - BUDGET AND ACTUAL - GENERAL CEMETERY FUND - NONMAJOR SPECIALREVENUE FUNDFor the Year Ended April 30, 2016Original andFinal BudgetActualVariance withFinal BudgetREVENUESGrants and contributions $ 15,033 $ 12,135 $ (2,898)Charges for services 547,887 913,094 365,207Investment income 78,714 (69,107) (147,821)Miscellaneous -2727Total Revenues641,634856,149214,515EXPENDITURESCurrentGeneral government 877,418 648,602 228,816Contingency87,742-87,742Total Expenditures965,160648,602316,558Net Change in Fund Balance$ (323,526)207,547$ 531,073FUND BALANCE - Beginning of Year4,931,239FUND BALANCE - END OF YEAR$ 5,138,786Page 113CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE - BUDGET AND ACTUAL - SENIOR RESOURCES COMMISSION FUND - NONMAJORSPECIAL REVENUE FUNDFor the Year Ended April 30, 2016Original andFinal BudgetActualVariance withFinal BudgetREVENUESGrants and contributions $ 178,500 $ 201,194 $ 22,694Charges for services 180,700 148,187 (32,513)Investment income 350690340Total Revenues359,550350,071(9,479)EXPENDITURESCurrentCulture and recreation 603,231 486,394 116,837Contingency60,323-60,323Total Expenditures663,554486,394177,160Excess (deficiency) of revenues over (under)expenditures (304,004)(136,323)167,681OTHER FINANCING SOURCES (USES)Transfers in 260,218184,168(76,050)Total Other Financing Sources (Uses)260,218184,168(76,050)Net Change in Fund Balance$ (43,786)47,845$ 91,631FUND BALANCE - Beginning of Year88,794FUND BALANCE - END OF YEAR$ 136,639Page 114182
CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE - BUDGET AND ACTUAL - HOUSING TRUST FUND - NONMAJOR SPECIAL REVENUEFUNDFor the Year Ended April 30, 2016Original andFinal BudgetActualVariance withFinal BudgetREVENUESOther taxes $ 48,000 $ 72,000 $ 24,000Investment income 2,2003,5521,352Total Revenues50,20075,55225,352EXPENDITURESCurrentGeneral government365,000 100,000 265,000Contingency36,500-36,500Total Expenditures401,500100,000301,500Net Change in Fund Balance$ (351,300)(24,448)$ 326,852FUND BALANCE - Beginning of Year726,659FUND BALANCE - END OF YEAR$ 702,211Page 115CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE - BUDGET AND ACTUAL - DEBT SERVICE FUND - NONMAJOR DEBT SERVICE FUNDFor the Year Ended April 30, 2016Original andFinal BudgetActualVariance withFinal BudgetREVENUESTaxesProperty$ 2,237,285 $ 2,253,502 $ 16,217Grants and contributions 168,384 156,513 (11,871)Investment income 6,54212,1655,623Total Revenues2,412,2112,422,1809,969EXPENDITURESCurrentGeneral government 3,750 3,750 -Debt servicePrincipal retirement 1,618,218 1,618,219 (1)Interest and fiscal charges 1,293,6241,293,634(10)Total Expenditures2,915,5922,915,603(11)Excess (deficiency) of revenues over (under)expenditures (503,381)(493,423)9,958OTHER FINANCING SOURCES (USES)Transfers in 681,724 662,413 (19,311)Transfers out (460,585)(297,580)163,005Total Other Financing Sources (Uses)221,139364,833143,694Net Change in Fund Balance$ (282,242)(128,590)$ 153,652FUND BALANCE - Beginning of Year1,805,602FUND BALANCE - END OF YEAR$ 1,677,012Page 116183
CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE - BUDGET AND ACTUAL - ROUTE 60 BRIDGE IMPROVEMENTS FUND - NONMAJORCAPITAL PROJECTS FUNDFor the Year Ended April 30, 2016Original andFinal BudgetActualVariance withFinal BudgetREVENUESInvestment income $ -$ 5,233$ 5,233Total Revenues-5,2335,233EXPENDITURESCurrentHighways and streets 1,036,000 - 1,036,000Contingency103,600-103,600Total Expenditures1,139,600-1,139,600Net Change in Fund Balance$ (1,139,600)5,233$ 1,144,833FUND BALANCE - Beginning of Year1,036,105FUND BALANCE - END OF YEAR$ 1,041,338Page 117CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGESIN FUND BALANCE - BUDGET AND ACTUAL - ROUTE 60 INTERSECTION IMPROVEMENTS FUND -NONMAJOR CAPITAL PROJECTS FUNDFor the Year Ended April 30, 2016Original andFinal BudgetActualVariance withFinal BudgetREVENUESInvestment income $ -$ 2,084$2,084Total Revenues-2,0842,084EXPENDITURESCurrentGeneral government 418,250 - 418,250Contingency41,825-41,825Total Expenditures460,075-460,075Net Change in Fund Balance$ (460,075)2,084$ 462,159FUND BALANCE - Beginning of Year412,631FUND BALANCE - END OF YEAR$ 414,715Page 118184
CITY OF LAKE FOREST6&+('8/(2)5(9(18(6(;3(1',785(6$1'&+$1*(6,1)81'%$/$1&(%8'*(7$1'$&78$//$85(/:(67(515('(9(/230(177,))81'1210$-25&$3,7$/352-(&76)81')RUWKH<HDU(QGHG$SULO2ULJLQDODQG)LQDO%XGJHW$FWXDO9DULDQFHZLWK)LQDO%XGJHWREVENUES,QYHVWPHQWLQFRPH 7RWDO5HYHQXHVEXPENDITURES&XUUHQW*HQHUDOJRYHUQPHQW &DSLWDO2XWOD\ &RQWLQJHQF\ 7RWDO([SHQGLWXUHV ([FHVV GHILFLHQF\ RIUHYHQXHVRYHU XQGHU H[SHQGLWXUHV OTHER FINANCING SOURCES (USES)*HQHUDOREOLJDWLRQERQGVLVVXHG 3UHPLXPRQGHEWLVVXHG7RWDO2WKHU)LQDQFLQJ6RXUFHV 8VHV Net Change in Fund Balance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et Change in Fund Balance )81'%$/$1&(%HJLQQLQJRI<HDU FUND BALANCE - END OF YEAR 3DJH185
Major Enterprise FundWaterworks and Sewerage Fund– This fund accounts for the provision of water and sewer service to the residents of the City.Nonmajor Enterprise FundDeerpath Golf Course Fund– This fund accounts for operations of the City golf course. Financing is provided by user charges from utilizing the golf course.CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENSES, AND NONOPERATING REVENUES (EXPENSES) - BUDGETAND ACTUAL (BUDGETARY BASIS)WATERWORKS AND SEWERAGE FUND - MAJOR ENTERPRISE FUNDFor the Year Ended April 30, 2016Original AndFinal BudgetActualVariance withFinal BudgetOPERATING REVENUESCharges for services $ 8,169,327 $ 7,316,716 $ (852,611)Connection fees 68,500 153,481 84,981Miscellaneous 8,4277,361(1,066)Total Operating Revenues8,246,2547,477,558(768,696)OPERATING EXPENSESGeneral and administrative 2,363,962 1,856,453 507,509Operations and maintenance 4,021,760 3,265,826 755,934Contingency1,025,980-1,025,980Total Operating Expenses7,411,7025,122,2792,289,423NON-OPERATING REVENUES (EXPENSES)Investment income 30,332 38,186 7,854Gain on disposals - 3,792 3,792Principal retirement (1,795,000) (1,795,000) -Interest expense (415,080)(491,794)(76,714)Total Non-Operating Revenues (Expenses)(2,179,748)(2,244,816)(65,068)Page 121186
CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENSES, AND NONOPERATING REVENUE (EXPENSES) - BUDGET ANDACTUAL (BUDGETARY BASIS)DEERPATH GOLF COURSE FUND - NONMAJOR ENTERPRISE FUNDFor the Year Ended April 30, 2016Original AndFinal BudgetActualVariance withFinal BudgetOPERATING REVENUESCharges for services $ 1,688,552 $ 1,757,036 $ 68,484Miscellaneous -2,2352,235Total Operating Revenues1,688,5521,759,27170,719OPERATING EXPENSESGeneral and administrative 700,232 623,030 77,202Operations and maintenance 1,030,068 1,173,929 (143,861)Contingency183,251-183,251Total Operating Expenses1,913,5511,796,959116,592NON-OPERATING REVENUES (EXPENSES)Investment income 1,085 2,176 1,091Principal retirement (82,000) (82,000) -Interest expense (20,210)(17,488)2,722Total Non-Operating Revenues (Expenses)(101,125)(97,312)3,813Page 122Internal Service FundsFleet Fund– This fund accounts for the costs of operating a maintenance and repairs facility for automotive and other equipment used by other City departments. Such costs are billed to the other departments at actual cost plus an allocation of administrative costs based on actual costs. The automotive and other equipment is acquired by the various user departments.Self Insurance Fund– This fund accounts for the costs of the self-insured medical and dental plan. Administration of the plan is provided by Professional Benefit Administration, Inc.Liability Insurance Fund– This fund accounts for the costs of liability insurance.187
CITY OF LAKE FORESTCOMBINING STATEMENT OF NET POSITIONINTERNAL SERVICE FUNDSAs of April 30, 2016FleetSelf InsuranceLiabilityInsuranceTotalsASSETSCurrent AssetsCash and cash equivalents $ 710,407 $ 4,619,648 $ 851,990 $ 6,182,045Receivables Other 6,220 19,060 1,070,663 1,095,943Inventories 310,706 - - 310,706Prepaid items--588,729588,729Total Current Assets1,027,3334,638,7082,511,3828,177,423Noncurrent AssetsCapital assets (net of accumulateddepreciation)Property and equipment 18,523--18,523Total Noncurrent Assets18,523--18,523Total Assets1,045,8564,638,7082,511,3828,195,946DEFERRED OUTFLOWS OF RESOURCESDeferred outflows of resources related topensions343,367--343,367Total Deferred Outflows of Resources343,367--343,367LIABILITIESCurrent LiabilitiesAccounts payable27,640 346,104 24,494 398,238Accrued liabilities23,054 580,817 131,169 735,040Unearned revenue2,535--2,535Total Current Liabilities53,229926,921155,6631,135,813Noncurrent LiabilitiesCompensated absences 61,879 - - 61,879Net pension liability490,946--490,946Total Noncurrent Liabilities552,825--552,825Total Liabilities606,054926,921155,6631,688,638DEFERRED INFLOWS OF RESOURCESDeferred inflows of resources related topensions4,503--4,503Total Deferred Inflows of Resources4,503--4,503NET POSITIONNet investment in capital assets 18,523 - - 18,523Unrestricted760,1433,711,7872,355,7196,827,649TOTAL NET POSITION$ 778,666$ 3,711,787$ 2,355,719$ 6,846,172Page 123CITY OF LAKE FORESTCOMBINING STATEMENT OF REVENUES, EXPENSES, ANDCHANGES IN NET POSITIONINTERNAL SERVICE FUNDSFor the Year EndedApril 30, 2016FleetSelf InsuranceLiabilityInsuranceTotalsOPERATING REVENUESCharges for services $ 1,958,498$ 5,086,058$ 1,681,517$ 8,726,073Total Operating Revenues1,958,4985,086,0581,681,5178,726,073OPERATING EXPENSESGeneral and administrative 1,520,197 5,632,088 1,142,639 8,294,924Depreciation and amortization 4,805--4,805Total Operating Expenses1,525,0025,632,0881,142,6398,299,729Operating Income (Loss)433,496(546,030)538,878426,344NONOPERATING REVENUES (EXPENSES)Investment income 2,99822,2884,60329,889Total Nonoperating Revenues(Expenses) 2,99822,2884,60329,889Change in net position436,494 (523,742) 543,481 456,233NET POSITION - Beginning of Year (asrestated) 342,1724,235,5291,812,2386,389,939NET POSITION - END OF YEAR$ 778,666$ 3,711,787$ 2,355,719$ 6,846,172Page 124188
CITY OF LAKE FORESTCOMBINING STATEMENT OF CASH FLOWSINTERNAL SERVICE FUNDSFor the Year Ended April 30, 2016FleetSelf InsuranceLiabilityInsuranceTotalsCASH FLOWS FROM OPERATINGACTIVITIESReceipts from interfund services provided $ 1,959,110 $ 5,317,319 $ 1,327,356 $ 8,603,785Paid to suppliers for goods and services (844,781) (5,819,362) (1,099,680) (7,763,823)Paid to employees for services (780,558)--(780,558)Net Cash Flows From OperatingActivities333,771(502,043)227,67659,404CASH FLOWS FROM INVESTINGACTIVITIESInterest received 2,99822,2884,60329,889Net Cash Flows From Investing Activities 2,99822,2884,60329,889Net Change in Cash and CashEquivalents336,769 (479,755) 232,279 89,293CASH AND CASH EQUIVALENTS - Beginningof Year373,6385,099,403619,7116,092,752CASH AND CASH EQUIVALENTS - ENDOF YEAR$ 710,407$ 4,619,648$ 851,990$ 6,182,045RECONCILIATION OF OPERATINGINCOME (LOSS) TO NET CASH FLOWSFROM OPERATING ACTIVITIESOperating income (loss) $ 433,496 $ (546,030) $ 538,878 $ 426,344Adjustments to Reconcile OperatingIncome (Loss) to Net Cash Flows FromOperating ActivitiesDepreciation 4,805 - - 4,805Changes in assets and liabilitiesAccounts receivable(1,923) 231,261 (354,161) (124,823)Inventories(3,328) (235,077)- (238,405)Prepaid items-- 34,830 34,830Deferred outflows related to pensions (321,562)-- (321,562)Accounts payable(4,347) 47,803 (3,737) 39,719Accrued salaries6,751- 11,866 18,617Net pension liability210,699-- 210,699Deferred inflows related to pensions4,503--4,503Deferred revenue2,535--2,535Compensated absences2,142--2,142NET CASH FLOWS FROMOPERATING ACTIVITIES$ 333,771$ (502,043)$ 227,676$ 59,404NONCASH CAPITAL AND RELATEDFINANCING ACTIVITIESNonePage 125CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENSES, AND NONOPERATING REVENUES - BUDGET AND ACTUAL(BUDGETARY BASIS)FLEET FUND - INTERNAL SERVICE FUNDFor the Year Ended April 30, 2016Original AndFinal BudgetActualVariance withFinal BudgetOPERATING REVENUESCharges for services $ 1,959,218$ 1,958,498$ (720)Total Operating Revenues1,959,2181,958,498(720)OPERATING EXPENSESGeneral and administrative 1,957,105 1,520,197 436,908Contingency195,710-195,710Total Operating Expenses2,152,8151,520,197632,618NON-OPERATING REVENUESInvestment income 8002,9982,198Page 126189
CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENSES, AND NONOPERATING REVENUE - BUDGET AND ACTUAL(BUDGETARY BASIS)LIABILITY INSURANCE FUND - INTERNAL SERVICE FUNDFor the Year Ended April 30, 2016Original AndFinal BudgetActualVariance withFinal BudgetOPERATING REVENUESCharges for services $ 1,327,348$ 1,681,517$ 354,169Total Operating Revenues1,327,3481,681,517354,169OPERATING EXPENSESGeneral and administrative 1,200,000 1,142,639 57,361Contingency120,000-(120,000)Total Operating Expenses1,320,0001,142,639(62,639)NON-OPERATING REVENUESInvestment income 2,0004,6032,603Page 127CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENSES, AND NONOPERATING REVENUE - BUDGET AND ACTUAL(BUDGETARY BASIS)SELF INSURANCE FUND - INTERNAL SERVICE FUNDFor the Year Ended April 30, 2016Original AndFinal BudgetActualVariance withFinal BudgetOPERATING REVENUESCharges for services $ 5,100,000$ 5,086,058$ (13,942)Total Operating Revenues5,100,0005,086,058(13,942)OPERATING EXPENSESGeneral and administrative 5,630,000 5,632,088 (2,088)Contingency563,000-(563,000)Total Operating Expenses6,193,0005,632,088(565,088)NON-OPERATING REVENUESInvestment income 20,00022,2882,288Page 128190
Pension Trust FundsPolice Pension Fund– This fund accounts for the accumulation of resources to be used for disability or retirement annuity payments to uniformed police department personnel at appropriate amounts and times in the future. Resources are contributed by employees at rates fixed by law and by the City at amounts determined by an independent actuary from a specific property tax levy.Firefighters’ Pension Fund– This fund accounts for the accumulation or resources to be used for disability or retirement annuity payments to uniformed fire department personnel at appropriate amounts and times in the future. Resources are contributed by employees at rates fixed by law and by the City at amounts determined by an independent actuary from a specific property tax levy.Private Purpose Trust FundCemetery Trust Fund – This fund accounts for monies provided by private donations. The investment earnings are expended for the operations of the cemetery. Agency FundSpecial Assessment Fund– This fund accounts for the collection of special assessments of property owners and payments of related special assessment liabilities. The City does not have any outstanding special assessment. The cash balance is unclaimed rebated special assessments.CITY OF LAKE FORESTCOMBINING STATEMENT OF FIDUCIARY NET POSITIONPENSION TRUST FUNDSAs of April 30, 2016Police PensionFirefighters'PensionTotalsASSETSCash $ 3,284 $ 9,105 $ 12,389Money markets 206,800 1,013,613 1,220,413InvestmentsU.S. treasury obligations 9,388,651 2,978,653 12,367,304U.S. government agencies 561,984 3,273,789 3,835,773Municipal/corporate bonds 1,078,672 6,156,158 7,234,830Common stock 1,196,746 - 1,196,746Equity mutual funds 13,179,094 18,352,277 31,531,371Real estate investment fund 1,731,650 - 1,731,650Other 54,318 107,158 161,476Prepaid items13,0849,16922,253Total Assets27,414,28331,899,92259,314,205LIABILITIESAccounts payable10,1202,84812,968Total Liabilities10,1202,84812,968NET POSITIONHeld in trust for pension benefits$ 27,404,163$ 31,897,074$ 59,301,237Page 129191
CITY OF LAKE FORESTCOMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITIONPENSION TRUST FUNDSFor the Year EndedApril 30, 2016Police PensionFirefighters'PensionTotalADDITIONSContributionsEmployer $ 1,806,270 $ 1,216,585 $ 3,022,855Employee 373,216 297,946 671,162Miscellaneous 3,2111003,311Total Contributions2,182,6971,514,6313,697,328InterestInterest 488,783 775,613 1,264,396Net appreciation (depreciation) in fair value ofinvestments(854,895)(623,694)(1,478,589)Total Investment Income (366,112) 151,919 (214,193)Less Investment expense112,75491,584204,338Net Investment Income(478,866)60,335(418,531)Total Additions1,703,8311,574,9663,278,797DEDUCTIONSPension benefits and refunds 2,320,588 1,931,047 4,251,635Other administrative expenses 4,8354,8359,670Total Deductions2,325,4231,935,8824,261,305Change in Net Position(621,592) (360,916) (982,508)NET POSITION - Beginning of Year28,025,75532,257,99060,283,745NET POSITION - END OF YEAR$ 27,404,163$ 31,897,074$ 59,301,237Page 130CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FIDUCIARY NET POSITION - BUDGET ANDACTUAL -POLICE PENSION FUND - PENSION TRUST FUNDFor the Year Ended April 30, 2016Original andFinal BudgetActualVariance withFinal BudgetAdditionsContributionsEmployer $ 1,810,315 $ 1,806,270 $ 4,045Employee 370,000 373,216 (3,216)Miscellaneous -3,211(3,211)Total contributions2,180,3152,182,697(2,382)Investment IncomeInterest 500,000 488,783 11,217Net appreciation (depreciation) in fair value ofinvesments-(854,895)854,895Total investment income500,000 (366,112) 866,112Less Investment expense115,000112,7542,246Net investment income385,000(478,866)863,866Total additions2,565,3151,703,831861,484DeductionsPension benefits and refunds 2,310,000 2,320,588 (10,588)Other administrative expenses 4,2004,835(635)Total deductions2,314,2002,325,423(11,223)Change in net position$ 251,115(621,592)$ 872,707Net position, beginning of year28,025,755Net position, end of year$ 27,404,163Page 131192
CITY OF LAKE FORESTSCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FIDUCIARY NET POSITION - BUDGET ANDACTUAL -FIREFIGHTERS' PENSION FUND - PENSION TRUST FUNDFor the Year Ended April 30, 2016Original andFinal BudgetActualVariance withFinal BudgetAdditionsContributionsEmployer $ 1,217,702 $ 1,216,585 $ 1,117Employee 290,000 297,946 (7,946)Miscellaneous -100(100)Total contributions1,507,7021,514,631(6,929)Investment IncomeInterest 500,000 775,613 (275,613)Net appreciation (depreciation) in fair value ofinvestments-(623,694)623,694Total investment income500,000 151,919 348,081Less Investment expense90,00091,584(1,584)Net investment income410,00060,335349,665Total additions1,917,7021,574,966342,736DeductionsPension benefits and refunds 1,870,000 1,931,047 (61,047)Other administrative expenses 4,2004,835(635)Total deductions1,874,2001,935,882(61,682)Change in net position$ 43,502(360,916)$ 404,418Net position, beginning of year32,257,990Net position, end of year$ 31,897,074Page 1323DJHCITY OF LAKE FOREST6WDWHPHQWRI&KDQJHVLQ$VVHWVDQG/LDELOLWLHV$JHQF\)XQG6SHFLDO$VVHVVPHQW)XQG$VRI$SULO%DODQFH%DODQFH0D\$GGLWLRQV'HOHWLRQ$SULOAssets&DVKDQGFDVKHTXLYDOHQWVLiabilities'XHWRVSHFLDODVVHVVPHQWGLVWULFWV 193
Discretely Presented Component UnitLake Forest Library – General Fund– This fund accounts for the operation and maintenance of the Lake Forest Library. Financing is provided by a specific annual property tax levy, charges for services, fines and forfeits, interest earned on investments and other miscellaneous revenues.3DJHCITY OF LAKE FOREST'LVFUHWHO\3UHVHQWHG&RPSRQHQW8QLW/DNH)RUHVW/LEUDU\6WDWHPHQWRI1HW3RVLWLRQDQG*HQHUDO)XQG%DODQFH6KHHW*HQHUDO6WDWHPHQWRI)XQG$GMXVWPHQWV 1HW3RVLWLRQAssets and Deferred Outflows of Resources&DVKDQGFDVKHTXLYDOHQWV XQFROOHFWLEOHV 3UHSDLGLWHPV&DSLWDODVVHWVQRWGHSUHFLDWHG &DSLWDODVVHWVGHSUHFLDWHGQHWRIDFFXPXODWHGGHSUHFLDWLRQ 'HIHUUHGRXWIORZVRI5HVRXUFHV'HIHUUHGRXWIORZVUHODWHGWRSHQVLRQV7RWDO$VVHWVDQG'HIHUUHG2XWIORZVRI5HVRXUFHV Liabilities, Deferred Inflows of Resources, and Fund Balance/Net Position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
3DJHCITY OF LAKE FOREST'LVFUHWHO\3UHVHQWHG&RPSRQHQW8QLW/DNH)RUHVW/LEUDU\6WDWHPHQWRI$FWLYLWLHVDQG*HQHUDO)XQG6WDWHPHQWRI5HYHQXHV([SHQGLWXUHVDQG&KDQJHVLQ)XQG%DODQFH)RUWKH<HDU(QGHG$SULO6WDWHPHQW*HQHUDORI)XQG$GMXVWPHQWV $FWLYLWLHVRevenues )LQHV Expenditures/expenses&XUUHQW &DSLWDO2XWOD\ 'HEW6HUYLFH 7RWDOH[SHQGLWXUHVH[SHQVHV 1HWFKDQJHLQIXQGEDODQFHQHWSRVLWLRQ )XQGEDODQFHQHWSRVLWLRQHQGRI\HDU )XQGEDODQFHQHWSRVLWLRQEHJLQQLQJRI\HDU DVUHVWDWHG 3URSHUW\WD[HV&KDUJHVIRUVHUYLFHV7RWDOUHYHQXHV,QWHUJRYHUQPHQWDO*UDQWVDQGFRQWULEXWLRQV,QYHVWPHQW,QFRPH3DJHCITY OF LAKE FOREST6XPPDU\RI'HEW6HUYLFH5HTXLUHPHQWVWR0DWXULW\$VRI$SULO*HQHUDO)LVFDO 2EOLJDWLRQ<HDU %RQGV 7RWDO 195
3DJHCITY OF LAKE FOREST'HEW6HUYLFH5HTXLUHPHQWVWR0DWXULW\*HQHUDO2EOLJDWLRQ%RQGV$VRI$SULO<HDU 3ULQFLSDO ,QWHUHVW 3ULQFLSDO ,QWHUHVW 3ULQFLSDO ,QWHUHVW 6SHFLDO6HUYLFH$UHD)LVFDO7D[%RQGV7D[%RQGV 7D[%RQGV6SHFLDO6HUYLFH$UHD 6SHFLDO6HUYLFH$UHD 3DJHCITY OF LAKE FOREST'HEW6HUYLFH5HTXLUHPHQWVWR0DWXULW\*HQHUDO2EOLJDWLRQ%RQGV$VRI$SULO<HDU 3ULQFLSDO ,QWHUHVW 3ULQFLSDO ,QWHUHVW 3ULQFLSDO ,QWHUHVW 2ELOJDWLRQ%RQGV2ELOJDWLRQ%RQGV2EOLJDWLRQ%RQGV)LVFDO6HULHV6HULHV 6HULHV6HULHV%196
3DJH CITY OF LAKE FOREST'HEW6HUYLFH5HTXLUHPHQWVWR0DWXULW\*HQHUDO2EOLJDWLRQ%RQGV$VRI$SULO<HDU 3ULQFLSDO ,QWHUHVW 3ULQFLSDO ,QWHUHVW 3ULQFLSDO ,QWHUHVW 2EOLJDWLRQ%RQGV2EOLJDWLRQ%RQGV)LVFDO6HULHV&6HULHV$6HULHV%2ELOJDWLRQ%RQGV3DJHCITY OF LAKE FOREST'HEW6HUYLFH5HTXLUHPHQWVWR0DWXULW\*HQHUDO2EOLJDWLRQ%RQGV$VRI$SULO)LVFDO<HDU 3ULQFLSDO ,QWHUHVW 3ULQFLSDO ,QWHUHVW 6HULHV2EOLJDWLRQ%RQGV 2EOLJDWLRQ%RQGV6HULHV197
3DJHCITY OF LAKE FOREST'HEW6HUYLFH5HTXLUHPHQWVWR0DWXULW\*HQHUDO2EOLJDWLRQ%RQGV$VRI$SULO)LVFDO<HDU 3ULQFLSDO ,QWHUHVW 7RWDO 7RWDO5HTXLUHPHQWV3DJHCITY OF LAKE FOREST6SHFLDO6HUYLFH$UHD6SHFLDO7D[%RQGV±6HULHV$VRI$SULO'DWHRILVVXH 0D\'DWHRIPDWXULW\ 'HFHPEHU$XWKRUL]HGLVVXH 'HQRPLQDWLRQRIERQGV ,QWHUHVWUDWH ,QWHUHVWGDWHV -XQHDQG'HFHPEHU3D\DEOHDW /DNH)RUHVW%DQNDQG7UXVW/DNH)RUHVW,OOLQRLVRedeemable annuallyon December 15Amount 7KHUHDIWHU Bond Principal and Interest RequirementsTaxlevyTax levyyear Principal InterestTotalJune 15 Amount December 15 Amount 7KHUHDIWHU 7KHUHDIWHU 7KHUHDIWHU Coupons due on198
3DJHCITY OF LAKE FOREST6SHFLDO6HUYLFH$UHD6SHFLDO7D[%RQGV±6HULHV$VRI$SULO'DWHRILVVXH 2FWREHU'DWHRIPDWXULW\ 'HFHPEHU$XWKRUL]HGLVVXH 'HQRPLQDWLRQRIERQGV 2QHERQGSHUPDWXULW\,QWHUHVWUDWHV ,QWHUHVWGDWHV -XQHDQG'HFHPEHU3D\DEOHDW /DNH)RUHVW%DQNDQG7UXVW/DNH)RUHVW,OOLQRLVRedeemable annuallyon December 15Amount 7KHUHDIWHU Bond Principal and Interest RequirementsTaxlevyTax levyyear Principal InterestTotalJune 15 Amount December 15 Amount 7KHUHDIWHU 7KHUHDIWHU 7KHUHDIWHU Coupons due on3DJHCITY OF LAKE FOREST6SHFLDO6HUYLFH$UHD 6SHFLDO7D[%RQGV±6HULHV$VRI$SULO'DWHRILVVXH 'DWHRIPDWXULW\ 'HFHPEHU$XWKRUL]HGLVVXH 'HQRPLQDWLRQRIERQGV 2QHERQGSHUPDWXULW\,QWHUHVWUDWHV ,QWHUHVWGDWHV -XQHDQG'HFHPEHU3D\DEOHDW /DNH)RUHVW%DQNDQG7UXVW/DNH)RUHVW,OOLQRLVRedeemable annuallyon December 15Amount 7KHUHDIWHU Bond Principal and Interest RequirementsTaxlevyTax levyyear Principal InterestTotalJune 15 Amount December 15 Amount 7KHUHDIWHU 7KHUHDIWHU 7KHUHDIWHU Coupons due on'HFHPEHU199
3DJHCITY OF LAKE FOREST*HQHUDO2EOLJDWLRQ%RQGV±6HULHV$VRI$SULO'DWHRILVVXH 'DWHRIPDWXULW\ 'HFHPEHU$XWKRUL]HGLVVXH 'HQRPLQDWLRQRIERQGV ,QWHUHVWUDWHV ,QWHUHVWGDWHV -XQHDQG'HFHPEHU3D\DEOHDW :HOOV)DUJR%DQN&KLFDJR,OOLQRLVRedeemable annuallyon December 15Amount 7KHUHDIWHU Bond Principal and Interest RequirementsTaxlevyTax levyyear Principal InterestTotalJune 15 Amount December 15 Amount 7KHUHDIWHU 7KHUHDIWHU 7KHUHDIWHU Coupons due on$SULO3DJHCITY OF LAKE FOREST*HQHUDO2EOLJDWLRQ%RQGV± 6HULHV$VRI$SULO'DWHRILVVXH 'DWHRIPDWXULW\ 'HFHPEHU$XWKRUL]HGLVVXH 'HQRPLQDWLRQRIERQGV ,QWHUHVWUDWHV ,QWHUHVWGDWHV -XQHDQG'HFHPEHU3D\DEOHDW :HOOV)DUJR%DQN&KLFDJR,OOLQRLVRedeemable annuallyon December 15Amount 7KHUHDIWHU Bond Principal and Interest RequirementsTaxlevyTax levyyear Principal InterestTotalJune 15 Amount December 15 Amount 7KHUHDIWHU 7KHUHDIWHU 7KHUHDIWHU Coupons due on0D\ 200
3DJHCITY OF LAKE FOREST*HQHUDO2EOLJDWLRQ%RQGV±6HULHV%$VRI$SULO'DWHRILVVXH 'DWHRIPDWXULW\ 'HFHPEHU$XWKRUL]HGLVVXH 'HQRPLQDWLRQRIERQGV ,QWHUHVWUDWH ,QWHUHVWGDWHV -XQHDQG'HFHPEHU3D\DEOHDW :HOOV)DUJR%DQN&KLFDJR,OOLQRLVRedeemable annuallyon December 15Amount Bond Principal and Interest RequirementsTaxlevyTax levyyear Principal InterestTotalJune 15 Amount December 15 Amount ² ² ² ² ² 7KHUHDIWHU 7KHUHDIWHU 7KHUHDIWHU Coupons due on0D\3DJHCITY OF LAKE FOREST*HQHUDO2EOLJDWLRQ%RQGV±6HULHV&$VRI$SULO'DWHRILVVXH 'DWHRIPDWXULW\ 'HFHPEHU $XWKRUL]HGLVVXH 'HQRPLQDWLRQRIERQGV ,QWHUHVWUDWHV ,QWHUHVWGDWHV -XQHDQG'HFHPEHU3D\DEOHDW :HOOV)DUJR%DQN&KLFDJR,OOLQRLVRedeemable annuallyon December 15Amount 7KHUHDIWHU Bond Principal and Interest RequirementsTaxlevyTax levyyear Principal InterestTotalJune 15 Amount December 15 Amount 7KHUHDIWHU 7KHUHDIWHU 7KHUHDIWHU Coupons due on0D\201
3DJH CITY OF LAKE FOREST*HQHUDO2EOLJDWLRQ%RQGV±6HULHV$$VRI$SULO'DWHRILVVXH 'DWHRIPDWXULW\ 'HFHPEHU$XWKRUL]HGLVVXH 'HQRPLQDWLRQRIERQGV ,QWHUHVWUDWHV ,QWHUHVWGDWHV -XQHDQG'HFHPEHU3D\DEOHDW :HOOV)DUJR%DQN&KLFDJR,OOLQRLVRedeemable annuallyon December 15Amount 7KHUHDIWHU² Bond Principal and Interest RequirementsTaxlevyTax levyyear Principal InterestTotalJune 15 Amount December 15 Amount 7KHUHDIWHU²²² 7KHUHDIWHU² 7KHUHDIWHU² 6HSWHPEHUCoupons due on3DJHCITY OF LAKE FOREST, ILLINOIS*HQHUDO2EOLJDWLRQ%RQGV±6HULHV%$VRI$SULO'DWHRILVVXH 'DWHRIPDWXULW\ 'HFHPEHU$XWKRUL]HGLVVXH 'HQRPLQDWLRQRIERQGV ,QWHUHVWUDWHV ,QWHUHVWGDWHV -XQHDQG'HFHPEHU3D\DEOHDW :HOOV)DUJR%DQN&KLFDJR,OOLQRLVRedeemable annuallyon December 15Amount 7KHUHDIWHU Bond Principal and Interest RequirementsTaxlevyTax levyyear Principal InterestTotalJune 15 Amount December 15 Amount 7KHUHDIWHU 7KHUHDIWHU 7KHUHDIWHU 6HSWHPEHUCoupons due on202
3DJHCITY OF LAKE FOREST, ILLINOIS*HQHUDO2EOLJDWLRQ%RQGV±6HULHV$VRI$SULO'DWHRILVVXH 'DWHRIPDWXULW\ 'HFHPEHU$XWKRUL]HGLVVXH 'HQRPLQDWLRQRIERQGV ,QWHUHVWUDWHV ,QWHUHVWGDWHV -XQHDQG'HFHPEHU3D\DEOHDW :HOOV)DUJR%DQN&KLFDJR,OOLQRLVRedeemable annuallyon December 15Amount² 7KHUHDIWHU Bond Principal and Interest RequirementsTaxlevyTax levyyear Principal InterestTotalJune 15 Amount December 15 Amount ² 7KHUHDIWHU 7KHUHDIWHU 7KHUHDIWHU 6HSWHPEHUCoupons due on3DJHCITY OF LAKE FOREST*HQHUDO2EOLJDWLRQ%RQGV±6HULHV$VRI$SULO'DWHRILVVXH 'DWHRIPDWXULW\ 'HFHPEHU$XWKRUL]HGLVVXH 'HQRPLQDWLRQRIERQGV ,QWHUHVWUDWHV ,QWHUHVWGDWHV -XQHDQG'HFHPEHU3D\DEOHDW :HOOV)DUJR%DQN&KLFDJR,OOLQRLVRedeemable annuallyon December 15Amount 7KHUHDIWHU Bond Principal and Interest RequirementsTaxlevyTax levyyear Principal InterestTotalJune 15 Amount December 15 Amount 7KHUHDIWHU 7KHUHDIWHU 7KHUHDIWHU $XJXVWCoupons due on203
3DJHCITY OF LAKE FOREST'HEW6HUYLFH)XQG&RPELQLQJ%DODQFH6KHHW$VRI$SULO6HULHV' 6SHFLDO6HUYLFH 6SHFLDO6HUYLFH 6SHFLDO6HUYLFH 6HULHV%$ $UHD $UHD $UHD %*HQHUDO *HQHUDO *HQHUDO *HQHUDO *HQHUDO2EOLJDWLRQ2EOLJDWLRQ2EOLJDWLRQ2EOLJDWLRQ2EOLJDWLRQ Assets%RQGV %RQGV %RQGV %RQGV %RQGV&DVKDQGFDVKHTXLYDOHQWV XQFROOHFWLEOHV Deferred inflows of resources3URSHUW\WD[HVOHYLHGWRILQDQFH)< Fund Balance)XQGEDODQFHUHVWULFWHGIRUGHEWVHUYLFH 7RWDOGHIHUUHGLQIORZVRIUHVRXUFHVDQGIXQGEDODQFHV 5HFHLYDEOHV QHWRIDOORZDQFHIRU3URSHUW\WD[HV7RWDODVVHWV3DJH *HQHUDO *HQHUDO *HQHUDO *HQHUDO *HQHUDO2EOLJDWLRQ2EOLJDWLRQ2EOLJDWLRQ2EOLJDWLRQ2EOLJDWLRQ%RQGV %RQGV %RQGV %RQGV %RQGV 7RWDO 204
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
Statistical SectionContentsPageFinancial TrendsRevenue CapacityDebt Capacity Demographic and Economic InformationOperating Information7KLVSRUWLRQRIWKH&LW\RI/DNH)RUHVW
V&RPSUHKHQVLYH$QQXDO)LQDQFLDO5HSRUWSUHVHQWVGHWDLOHGLQIRUPDWLRQDVDFRQWH[WIRUXQGHUVWDQGLQJZKDWWKHLQIRUPDWLRQLQWKHILQDQFLDOVWDWHPHQWVQRWHGLVFORVXUHVDQGUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQVD\VDERXWWKH&LW\
VRYHUDOOHFRQRPLFFRQGLWLRQDQGILQDQFLDOKHDOWK6RXUFHV 8QOHVVRWKHUZLVHQRWHGWKHLQIRUPDWLRQLQWKHVHVFKHGXOHVLVGHULYHGIURPWKHFRPSUHKHQVLYHDQQXDOILQDQFLDOUHSRUWVIRUWKHUHOHYDQW\HDU7KHVHVFKHGXOHVFRQWDLQWUHQGLQIRUPDWLRQWRKHOSWKHUHDGHUXQGHUVWDQGKRZWKH&LW\
VILQDQFLDOSHUIRUPDQFHDQGZHOOEHLQJKDYHFKDQJHGRYHUWLPH7KHVHVFKHGXOHVFRQWDLQLQIRUPDWLRQWRKHOSWKHUHDGHUDVVHVVWKHIDFWRUVDIIHFWLQJWKH&LW\
VDELOLW\WRJHQHUDWHLWVSURSHUW\DQGVDOHVWD[HV7KHVHVFKHGXOHVSUHVHQWLQIRUPDWLRQWRKHOSWKHUHDGHUDVVHVVWKHDIIRUGDELOLW\RIWKH&LW\
VFXUUHQWOHYHOVRIRXWVWDQGLQJGHEWDQGWKH&LW\
VDELOLW\WRLVVXHDGGLWLRQDOGHEW7KHVHVFKHGXOHVRIIHUGHPRJUDSKLFDQGHFRQRPLFLQGLFDWRUVWRKHOSWKHUHDGHUXQGHUVWDQGWKHHQYLURQPHQWZLWKLQZKLFKWKH&LW\
VILQDQFLDODFWLYLWLHVWDNHSODFHDQGWRKHOSPDNHFRPSDULVRQVRYHUWLPHDQGRWKHUJRYHUQPHQWV7KHVHVFKHGXOHVFRQWDLQLQIRUPDWLRQDERXWWKH&LW\
VRSHUDWLRQVDQGUHVRXUFHVWRKHOSWKHUHDGHUXQGHUVWDQGKRZWKH&LW\
VILQDQFLDOLQIRUPDWLRQUHODWHVWRWKHVHUYLFHVWKH&LW\SURYLGHVDQGWKHDFWLYLWLHVLWSHUIRUPV __________________________________ THIS PAGE INTENTIONALLY LEFT BLANK _________________________________ 206
3DJHCITY OF LAKE FOREST1HW3RVLWLRQE\&RPSRQHQW/DVW7HQ)LVFDO<HDUV)LVFDO<HDUV *RYHUQPHQWDO$FWLYLWLHV1HW,QYHVWPHQWLQ&DSLWDO$VVHWV 5HVWULFWHG 8QUHVWULFWHG 7RWDO*RYHUQPHQWDO$FWLYLWLHV1HW3RVLWLRQ %XVLQHVVW\SH$FWLYLWLHV1HW,QYHVWPHQWLQ&DSLWDO$VVHWV 8QUHVWULFWHG 7RWDO%XVLQHVVW\SH$FWLYLWLHV1HW3RVLWLRQ 3ULPDU\*RYHUQPHQW1HW,QYHVWPHQWLQ&DSLWDO$VVHWV 5HVWULFWHG 8QUHVWULFWHG 7RWDO3ULPDU\*RYHUQPHQW1HW3RVLWLRQ
%HJLQQLQJLQWKH&LW\LPSOHPHQWHG*$6%ZKLFKUHVXOWHGLQWKHLQFOXVLRQRIDQHWSHQVLRQOLDELOLW\'DWD6RXUFH$XGLWHG)LQDQFLDO6WDWHPHQWV3DJH 207
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
3DJHCITY OF LAKE FOREST&KDQJHLQ1HW3RVLWLRQ &RQW /DVW7HQ)LVFDO<HDUV)LVFDO<HDUV*HQHUDO5HYHQXHVDQG2WKHU&KDQJHVLQ1HW3RVLWLRQ*RYHUQPHQWDO$FWLYLWLHV7D[HV3URSHUW\ 6DOHV ,QFRPHDQG8VH 7HOHFRPPXQLFDWLRQVDQG8WLOLW\ 5HDO(VWDWH7UDQVIHU7D[ 2WKHU ,QYHVWPHQW(DUQLQJV 0LVFHOODQHRXV 7UDQVIHUV 7RWDO*RYHUQPHQW$FWLYLWLHV %XVLQHVVW\SH$FWLYLWLHV,QYHVWPHQW(DUQLQJV 2WKHU 7UDQVIHUV 7RWDO%XVLQHVVW\SH$FWLYLWLHV 7RWDO3ULPDU\*RYHUQPHQW &KDQJHLQ1HW3RVLWLRQ*RYHUQPHQWDO$FWLYLWLHV %XVLQHVVW\SH$FWLYLWLHV 7RWDO3ULPDU\*RYHUQPHQW&KDQJHLQ1HW3RVLWLRQ 'DWD6RXUFH$XGLWHG)LQDQFLDO6WDWHPHQWV
6WDUWLQJLQDOOWD[HVDGPLQLVWHUHGE\WKH6WDWHDQGGLVEXUVHGWRWKH&LW\DUHUHSRUWHGDVLQWHUJRYHUQPHQWDOWKHILQDQFLDOVWDWHPHQWV7KH\KDYHEHHQJURXSHGE\WD[W\SHIRUFRPSDULVRQSXUSRVHVDERYH3DJH 209
3DJHCITY OF LAKE FOREST)XQG%DODQFHVRI*RYHUQPHQWDO)XQGV/DVW7HQ)LVFDO<HDUV)LVFDO<HDUV *HQHUDO)XQG1RQVSHQGDEOH 5HVWULFWHG 8QDVVLJQHG 5HVHUYHG 8QUHVHUYHG7RWDO*HQHUDO)XQG $OORWKHU*RYHUQPHQWDO)XQGV1RQ6SHQGDEOH 5HVWULFWHG $VVLJQHG 8QDVVLJQHG 5HVHUYHG Special Revenue Funds Capital Project Funds Debt Service Funds 8QUHVHUYHG5HSRUWHGLQ 6SHFLDO5HYHQXH)XQGV &DSLWDO3URMHFWV)XQGV 'HEW6HUYLFH)XQGV7RWDO$OORWKHU*RYHUQPHQWDO)XQGV 7RWDO*RYHUQPHQWDO)XQGV
7KH&LW\LPSOHPHQWHG*$6%6WDWHPHQWLQ)<'DWD6RXUFH$XGLWHG)LQDQFLDO6WDWHPHQWV3DJH
210
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
3DJHCITY OF LAKE FOREST$VVHVVHG9DOXHDQG$FWXDO9DOXHRI7D[DEOH3URSHUW\/DVW7HQ/HY\<HDUV7RWDO (VWLPDWHG (VWLPDWHG 7D[ 7RWDO7D[DEOH 'LUHFW $FWXDO $FWXDO/HY\ 5HVLGHQWLDO &RPPHUFLDO ,QGXVWULDO 2WKHU ,QFUHPHQW $VVHVVHG 7D[ 7D[DEOH7D[DEOH<HDU3URSHUW\3URSHUW\3URSHUW\3URSHUW\)LQDQFLQJ9DOXH5DWH9DOXH9DOXH 'DWD6RXUFH2IILFHRIWKH&RXQW\&OHUN1RWH 3URSHUW\LVDVVHVVHGDWRIDFWXDOYDOXH SURSHUW\WD[UDWHVSHURIDVVHVVHGYDOXDWLRQ7KH&LW\
V7,),QFUHPHQW)LQDQFLQJGLVWULFWH[SLUHGIRU3DJHCITY OF LAKE FOREST3URSHUW\7D[5DWHV'LUHFWDQG2YHUODSSLQJ*RYHUQPHQWV%DVHGRQ6KLHOGV7RZQVKLS/DVW7HQ/HY\<HDUV %RQGV &RUSRUDWH )LUHPHQ
V3HQVLRQ ,05) /LEUDU\ /LEUDU\6LWHV %XLOGLQJ 3DUNV3DUN0DLQWHQDQFH 3OD\JURXQG 5HFUHDWLRQ
3ROLFH3HQVLRQ 5HFUHDWLRQIRU+DQGLFDSSHG5HF 6RFLDO6HFXULW\&LW\'LUHFW5DWHV
2YHUODSSLQJ5DWHV&ROOHJHRI/DNH&RXQW\ &RXQW\RI/DNH /DNH&RXQW\)RUHVW3UHVHUYH 1RUWK6KRUH6DQLWDU\'LVWULFW 6FKRRO'LVWULFW(OHP 6FKRRO'LVWULFW+LJK6FKRRO 7RZQVKLS 7RZQVKLS5RDGDQG%ULGJH 7RWDOWD[UDWH &LW\
VVKDUHRIWRWDOWD[UDWH 'DWD6RXUFH2IILFHRIWKH&RXQW\&OHUN6KLHOGV7RZQVKLS
([FOXGHVUDWHVIRUWKH6SHFLDO6HUYLFH$UHDV
,QFOXGHVWKH&LW\
VFRPSRQHQWXQLW/DNH)RUHVW/LEUDU\
3DUNVDQG3OD\JURXQGVFRPELQHGLQ/DNH)RUHVWOLHVZLWKLQILYHWRZQVKLSV0RUDLQH6KLHOGV9HUQRQ:HVW'HHUILHOGDQG/LEHUW\YLOOH7KHUHIRUHWKHWD[UDWHVIRUVXSSRUWRIWKH7RZQVKLSJRYHUQPHQWDQGIRUWKH7RZQVKLS5RDGDQG%ULGJHSXUSRVHVYDU\3DUWVRI6KLHOGV7RZQVKLSLQ/DNH)RUHVWOLHLQWKH/DNH%OXII3DUN'LVWULFW$OORI0RUDLQH7RZQVKLSLVLQ/DNH)RUHVWDQGSDUWVRI6KLHOGVDQG:HVW'HHUILHOG7RZQVKLSVLQ/DNH)RUHVWOLHLQWKH1RUWK6KRUH6DQLWDU\'LVWULFW212
3DJH CITY OF LAKE FOREST3ULQFLSDO3URSHUW\7D[SD\HUV&XUUHQW<HDUDQG1LQH<HDUV$JR3HUFHQWDJH 3HUFHQWDJHRI7RWDO RI7RWDO&LW\ &LW\7D[DEOH 7D[DEOH 7D[DEOH 7D[DEOH$VVHVVHG $VVHVVHG $VVHVVHG $VVHVVHG7D[SD\HU9DOXH5DQN9DOXDWLRQ9DOXH5DQN9DOXDWLRQ+RVSLUD,QF /DNH3URGXFWV,QF 7KH3UHVE\WHULDQ+RPH &%,=3URSHUW\7D[6ROXWLRQV 7UXVWPDUN,QVXUDQFH&R 1RUWKZHVWHUQ/DNH)RUHVW+RVSLWDO /DNH)RUHVW/DQGPDUN&R//& /DNH)RUHVW/DQGPDUN,, 5LJJV &R 6756/$&4//F 7DS+ROGLQJV,QF -DPHV$OWRXQLDQ 5HG)R[//& 6KDZJDWH%URDGDFUH 'DWD6RXUFH2IILFHRIWKH&RXQW\&OHUN1RWH (YHU\HIIRUWKDVEHHQPDGHWRVHHNRXWDQGUHSRUWWKHODUJHVWWD[SD\HUV+RZHYHUPDQ\RIWKHWD[SD\HUVFRQWDLQPXOWLSOHSDUFHOVDQGLWLVSRVVLEOHWKDWVRPHSDUFHOVDQGWKHLUYDOXDWLRQVKDYHEHHQRYHUORRNHG&ROXPQLV$VVHVVHG9DOXDWLRQ&ROXPQLV$VVHVVHG9DOXDWLRQ 3DJHCITY OF LAKE FOREST3URSHUW\7D[/HYLHVDQG&ROOHFWLRQV/DVW7HQ/HY\<HDUV 6XEVHTXHQW/HY\ 3HUFHQWDJH <HDU 7D[HV 3HUFHQWDJH<HDU7D[/HYLHG$PRXQWRI/HY\&ROOHFWLRQV5HFHLYHGRI/HY\ 1$ 1$ 1$ 1$ 1$'DWD6RXUFH/DNH&RXQW\7UHDVXUHUDQG&LW\1RWH 3URSHUW\LVDVVHVVHGDWRIDFWXDOYDOXH&ROOHFWHGZLWKLQWKH)LVFDO<HDUDIWHUWKH/HY\7RWDO&ROOHFWLRQV3HU/HY\213
3DJHCITY OF LAKE FOREST7D[([WHQVLRQVIRU&LW\)XQGV/DVW7HQ/HY\<HDUV *HQHUDO )LUHILJKWHU3HQVLRQ 3ROLFH3HQVLRQ 3DUNVDQG5HFUHDWLRQ 6SHFLDO5HFUHDWLRQ *HQHUDO2EOLJDWLRQ%RQG % *HQHUDO2EOLJDWLRQ%RQG *HQHUDO2EOLJDWLRQ%RQG% *HQHUDO2EOLJDWLRQ%RQG%*HQHUDO2EOLJDWLRQ%RQG$ *HQHUDO2EOLJDWLRQ%RQG *HQHUDO2EOLJDWLRQ%RQG *HQHUDO2EOLJDWLRQ%RQG *HQHUDO2EOLJDWLRQ%RQG *HQHUDO2EOLJDWLRQ%RQG7RWDOWD[UDWH 'DWD6RXUFH2IILFHRIWKH&RXQW\&OHUN7KHWD[UDWHIRUWKH&LW\
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
'DWD6RXUFH&LW\UHFRUGV7KH&LW\RI/DNH)RUHVWEHFDPHDKRPHUXOHFRPPXQLW\LQ1RYHPEHU
7KHVDOHVWD[UDWHUHPDLQHGWKHVDPHDVXQWLO$SULO2Q$SULOWKHVDOHVWD[UDWHVLQFUHDVHGWRWKHUDWHLQGLFDWHGRQWKLVVFKHGXOH215
3DJHCITY OF LAKE FOREST5DWLRVRI2XWVWDQGLQJ'HEWE\7\SH/DVW7HQ)LVFDO<HDUV*RYHUQPHQWDO$FWLYLWLHV %XVLQHVV7\SH$FWLYLWLHV5DWLRRI7RWDO 3HUHFHQWDJH 7RWDO)LVFDO *HQHUDO ,QVWDOOPHQW *HQHUDO7RWDO 2XWVWDQGLQJ'HEWRI2XWVWDQGLQJ<HDU 2EOLJDWLRQ 3XUFKDVH 2EOLJDWLRQ 5HYHQXH 3ULPDU\ 7R(TXDOL]HG3HUVRQDO 'HEW3HU(QGHG%RQGV&RQWUDFWV%RQGV%RQGV*RYHUQPHQW$VVHVVHG9DOXDWLRQ
,QFRPH
&DSLWD
1RWH 'HWDLOVRIWKH&LW\
VRXWVWDQGLQJGHEWFDQEHIRXQGLQWKHQRWHVWRWKHILQDQFLDOVWDWHPHQWV
6HHWKH6FKHGXOHRI'HPRJUDSKLFDQG(FRQRPLF6WDWLVWLFVIRUHTXDOL]HGDVVHVVHGYDOXDWLRQRISURSHUW\SRSXODWLRQGDWDDQGSHUVRQDOLQFRPH3DJHCITY OF LAKE FOREST5DWLRVRI*HQHUDO%RQGHG'HEW2XWVWDQGLQJ/DVW7HQ)LVFDO<HDUV3HUFHQWDJHRI/HVV $PRXQWV (VWLPDWHG*HQHUDO $YDLODEOH $FWXDO7D[DEOH)LVFDO 2EOLJDWLRQ ,Q'HEW 9DOXHRI 3HU<HDU%RQGV6HUYLFH)XQG7RWDO3URSHUW\
&DSLWD 1RWH 'HWDLOVRIWKH&LW\
VRXWVWDQGLQJGHEWFDQEHIRXQGLQWKHQRWHVWRWKHILQDQFLDOVWDWHPHQWV
6HHWKH6FKHGXOHRI$VVHVVHG9DOXHDQGHVWLPDWHG$FWXDO9DOXHRI7D[DEOH3URSHUW\IRUSURSHUW\YDOXHGDWD216
3DJHCITY OF LAKE FOREST'LUHFWDQG2YHUODSSLQJ*RYHUQPHQWDO$FWLYLWLHV'HEW$VRI$SULO3HUFHQWDJH &LW\RI'HEW$SSOLFDEOH /DNH)RUHVW*URVV WRWKH&LW\RI 6KDUH*RYHUQPHQWDOXQLW'HEW/DNH)RUHVW
RI'HEW/DNH&RXQW\ /DNH&RXQW\&RPPXQLW\&ROOHJH/DNH&RXQW\)RUHVW3UHVHUYH'LVWULFW 6FKRRO'LVWULFW6FKRRO'LVWULFW+LJK6FKRRO'LVWULFW +LJK6FKRRO'LVWULFW 6XEWRWDORYHUODSSLQJGHEW &LW\RI/DNH)RUHVWGLUHFWGHEW7RWDOGLUHFWDQGRYHUODSSLQJGHEW 6RXUFH /DNH&RXQW\&OHUN
'HWHUPLQHGE\UDWLRRIDVVHVVHGYDOXDWLRQRISURSHUW\VXEMHFWWRWD[DWLRQLQWKH&LW\RI/DNH)RUHVWWRYDOXDWLRQRISURSHUW\VXEMHFWWRWD[DWLRQLQRYHUODSSLQJXQLW7KH3HUFHQWDJHRIGHEWLVFDOFXODWHGE\WKHSHUFHQWDJHRIWKH&LW\
V($9LQUHODWLRQWRWKHRYHUODSSLQJJRYHUQPHQW
V($97KHJURVVGHEWLVIRXQGRQWKH/DNH&RXQW\ZHEVLWHNote: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses ofthe City of Lake Forest. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. 3DJHCITY OF LAKE FOREST/HJDO'HEW0DUJLQ,QIRUPDWLRQ/DVW7HQ)LVFDO<HDUV 'HEWOLPLW1$1$1$1$1$1$ 1$ 1$ 1$ 1$7RWDOQHWGHEWDSSOLFDEOHWROLPLW 1$1$1$1$1$1$1$1$1$1$/HJDOGHEWPDUJLQ1$1$1$1$1$1$1$1$1$1$7RWDOQHWGHEWDSSOLFDEOHWRWKHOLPLWDVDSHUFHQWDJHRIGHEWOLPLW1$1$1$1$1$1$ 1$ 1$ 1$ 1$1RWH /HJDOGHEWPDUJLQIURP ZDVRIDVVHVVHGYDOXH
&LW\RI/DNH)RUHVWDFKLHYHGKRPHUXOHVWDWXVLQ1RYHPEHU7RGDWHWKH*HQHUDO$VVHPEO\KDVVHWQROLPLWVIRUKRPHUXOHPXQLFLSDOLWLHV217
3DJH CITY OF LAKE FOREST3OHGJHG5HYHQXH&RYHUDJH/DVW7HQ)LVFDO<HDUV/HVV 1HW)LVFDO *URVV 2SHUDWLQJ $YDLODEOH 'HEW6HUYLFH<HDU5HYHQXH([SHQVHV5HYHQXH3ULQFLSDO,QWHUHVW&RYHUDJH
1RWH 'HWDLOVRIWKH&LW\
VRXWVWDQGLQJGHEWFDQEHIRXQGLQWKHQRWHVWRWKHILQDQFLDOVWDWHPHQWV:DWHU&KDUJHVDQG2WKHULQFOXGHVLQYHVWPHQWHDUQLQJVEXWH[FOXGHVVDOHRISURSHUW\DQGJUDQWV2SHUDWLQJH[SHQVHVGRHVQRWLQFOXGHGHEWVHUYLFHGHSUHFLDWLRQRUUHVHUYHUHTXLUHPHQWV
,Q)< WKH3DLG3DUNLQJ)XQGZDVFORVHGWRWKH*HQHUDO)XQG'HEWSD\PHQWVZLOOEHSDLGIURPDQHZ'HEW6HUYLFH)XQG:DWHUZRUNVDQG6HZHUDJHDQG*ROI&RXUVH%RQGV3DJHCITY OF LAKE FOREST'HPRJUDSKLFDQG(FRQRPLF,QIRUPDWLRQ/DVW7HQ)LVFDO<HDUV(TXDOL]HG 3HU$FFHVVHG 3HU &DSLWD)LVFDO 9DOXH &DSLWD 3HUVRQDO 3HUVRQDO 8QHPSOR\PHQW<HDU3RSXODWLRQ ($9 ($9,QFRPH,QFRPH5DWH ( ( ( (
$
$
$
$
$
$ $ $FWXDO ( (VWLPDWHE\&LW\RI/DNH)RUHVW'DWD6RXUFH&LW\UHFRUGV'HSDUWPHQWRI/DERUDQG2IILFHRIWKH&RXQW\&OHUN&HQVXVLQIRUPDWLRQIRU3HU&DSLWD3HUVRQDO,QFRPHZDVQRWDYDLODEOH
7KH6WDWHRI,OOLQRLVUHYLVHGWKHDQQXDOXQHPSOR\PHQWUDWHVIRUVPDOOFRPPXQLWLHVEDFNWRLQ218
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
3DJHCITY OF LAKE FOREST&DSLWDO$VVHW6WDWLVWLFV/DVW7HQ)LVFDO<HDUV)XQFWLRQ3URJUDP 3XEOLF6DIHW\3ROLFH6WDWLRQV9HKLFOHV )LUHSURWHFWLRQ6WDWLRQV9HKLFOHV 3XEOLF:RUNV%ULGJHV9HKLFOH3HGHVWULDQ6WUHHWV6WUHHWV FHQWHUOLQHPLOHV 6WUHHWOLJKWV*DV (OHFWULF 6WRUPVHZHU PLOHV 3DUNVDQG5HFUHDWLRQ$FUHDJH :DWHU:DWHUPDLQV PLOHV )LUHK\GUDQWV :DVWHZDWHU6DQLWDU\VHZHUV PLOHV 'DWD6RXUFH&LW\GHSDUWPHQWV1$ GDWDQRWDYDLODEOH __________________________________ THIS PAGE INTENTIONALLY LEFT BLANK _________________________________ 221
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-1 222
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-2 223
PROPOSED FORM OF OPINION OF BOND COUNSEL
[LETTERHEAD OF CHAPMAN AND CUTLER LLP]
[TO BE DATED CLOSING DATE]
We hereby certify that we have examined certified copy of the proceedings (the
“Proceedings”) of the City Council of the City of Lake Forest, Lake County, Illinois (the “City”),
passed preliminary to the issue by the City of its fully registered General Obligation Bonds,
Series 2017 (the “Bonds”), to the amount of $______________, dated _____________, 2017, in
the denomination of $5,000 or authorized integral multiples thereof, and due serially on
December 15 of the years, in the amounts and bearing interest at the rates per annum as follows:
2023 $%
2024 %
2025 %
2026 %
2027 %
2028 %
2029 %
2030 %
2031 %
2032 %
2033 %
2034 %
2035 %
2036 %
2037 %
Each of the Bonds bears interest from the later of the dated date as stated above or from
the most recent interest payment date to which interest has been paid or duly provided for, until
the principal amount of such Bond, respectively, is paid or duly provided for, 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.
The Bonds due on or after December 15, 2026, are subject to redemption prior to maturity
at the option of the City, from any available funds, in whole or in part, on any date on or after
December 15, 2025, and if in part, in any order of maturity as selected by the City, and if less than
an entire maturity, in integral multiples of $5,000, selected by lot by the Bond Registrar, at the
redemption price of par plus accrued interest to the date fixed for redemption, as provided in the
Proceedings.
From such examination, we are of the opinion that the Proceedings show lawful authority
for the issuance of the Bonds under the laws of the State of Illinois now in force.
APPENDIX C
PROPOSED FORM OF OPINION OF BOND COUNSEL
C-1 224
We further certify that we have examined the form of bond prescribed for said issue and
find the same in due form of law, and in our opinion said issue, to the amount named, is valid and
legally binding upon the City and is 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.
It is our opinion that, subject to the City’s compliance with certain covenants, 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 alternative
minimum tax for individuals and corporations under the Internal Revenue Code of 1986, as
amended (the “Code”), but is taken into account in computing an adjustment used in determining
the federal alternative minimum tax for certain corporations. Failure to comply with certain of
such City covenants could cause interest on the Bonds to be includible in gross income for federal
income tax purposes retroactively to the date of issuance of the Bonds. Ownership of the Bonds
may result in other federal tax consequences to certain taxpayers, and we express no opinion
regarding any such collateral consequences arising with respect to the Bonds.
It is also our opinion that the Bonds are “qualified tax-exempt obligations” pursuant to
Section 265(b)(3) of the Code.
We express no opinion herein as to the accuracy, adequacy or completeness of any
information furnished to any person in connection with any offer or sale of the Bonds.
In rendering this opinion, we have relied upon certifications of the City with respect to
certain material facts within the City’s knowledge. Our opinion represents our legal judgment
based upon our review of the law and the facts that we deem relevant to render such opinion and
is not a guarantee of a result. This opinion is given as of the date hereof and we assume no
obligation to revise or supplement this opinion to reflect any facts or circumstances that may
hereafter come to our attention or any changes in law that may hereafter occur.
C-2 225
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
226
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION A.EMPLOYEES' RETIREMENT SYSTEMIllinois Municipal Retirement FundPlan description. All employees (other than those covered by the Police and Firefighters' Pension plans)hired in positions that meet or exceed the prescribed annual hourly standard must be enrolled in IMRF asparticipating members. IMRF has a two tier plan. Members who first participated in IMRF or an IllinoisReciprocal System prior to January 1, 2011 participate in Tier 1. All other members participate in Tier 2.For Tier 1 participants, pension benefits vest after 8 years of service. Participating members who retire ator after age 60 with 8 years of service are entitled to an annual retirement benefit, payable monthly for lifein an amount equal to 1 2/3% of their final rate of earnings (average of the highest 48 consecutive months'earnings during the last 10 years) for credited service up to 15 years and 2% for each year thereafter.For Tier 2 participants, pension benefits vest after 10 years of service. Participating members who retire ator after age 67 with 10 years of service are entitled to an annual retirement benefit, payable monthly forlife in an amount equal to 1 2/3% of their final rate of earnings (average of the highest 96 consecutivemonths' earnings during the last 10 years, capped at $106,800) for credited service up to 15 years and 2%for each year thereafter. However, an employee’s total pension cannot exceed 75% of their final rate ofearnings. If an employee retires after 10 years of service between the ages of 62 and 67, and has lessthan 30 years of service credit, the pension will be reduced by 1/2% for each month that the employee isunder the age of 67. If an employee retires after 10 years of service between the ages of 62 and 67, andhas between 30 and 35 years of service credit, the pension will be reduced by the lesser of 1/2% for eachmonth that the employee is under the age of 67 or 1/2% for each month of service credit less than 35years. IMRF also provides death and disability benefits. These benefit provisions and all otherrequirements are established by Illinois Compiled Statutes.IMRF issues a publicly available financial report that includes financial statements and requiredsupplementary information. The report may be obtained at www.imrf.org.Plan membership. At December 31, 2015, the measurement date, membership in the plan was asfollows:Retirees and beneficiaries244Inactive, non-retired members 181Active members196Total621CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Contributions. As set by statute, City employees participating in IMRF are required to contribute 4.50% oftheir annual covered salary. The statute requires the City to contribute the amount necessary, in additionto member contributions, to finance the retirement coverage of its own employees. The City's andLibrary’s actuarially determined contribution rate for calendar year 2015 was 14.88% percent of annualcovered payroll. The City and the Library also contributes for disability benefits, death benefits andsupplemental retirement benefits, all of which are pooled at the IMRF level. Contribution rates for disabilityand death benefits are set by the IMRF Board of Trustees, while the supplemental retirement benefits rateis set by statute.Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2015,and the total pension liability used to calculate the net pension liability/(asset) was determined by anactuarial valuation as of that date.Summary of Significant Accounting Policies. For purposes of measuring the net pensionliability/(asset), deferred outflows of resources and deferred inflows of resources related to pensions, andpension expense, information about the fiduciary net position of IMRF and additions to/deductions fromIMRF fiduciary net position have been determined on the same basis as they are reported by IMRF. Forthis purpose, benefit payments (including refunds of employee contributions) are recognized when dueand payable in accordance with the benefit terms. Investments are reported at fair value.Actuarial Assumptions. The assumptions used to measure the total pension liability in the December 31,2015 annual actuarial valuation included a 7.48% investment rate of return, (b) projected salary increasesfrom 3.75% to 14.50%, including inflation, and (c) price inflation of 2.75%. The retirement age is based onexperience-based table of rates that are specific to the type of eligibility condition. The tables were lastupdated for the 2014 valuation pursuant to an experience study of the period 2011-2013.Actuarial cost method Entry Age NormalAsset valuation method Market ValueActuarial assumptionsInvestment Rate of Return 7.48%Inflation 3.50%Salary increases 3.75% to 14.50%, including inflationPrice inflation 2.75%
D-1 227
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Mortality. For non-disabled retirees, an IMRF specific mortality table was used with fully generationalprojection scale MP-2014 (base year 2014). The IMRF specific rates were developed from the RP-2014Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. Fordisabled retirees, an IMRF specific mortality table was used with fully generational projection scale MP-2014 (base year 2014). The IMRF specific rates were developed from the RP-2014 Disabled RetireesMortality Table applying the same adjustment that were applied for non-disabled lives. For activemembers, an IMRF specific mortality table was used with fully generational projection scale MP-2014(base year 2014). The IMRF specific rates were developed from the RP-2014 Employee Mortality Tablewith adjustments to match current IMRF experience.Long-Term Expected Real Rate of Return. The long-term expected rate of return on pension planinvestments was determined using an asset allocation study in which best-estimate ranges of expectedfuture real rates of return (net of pension plan investment expense and inflation) were developed for eachmajor asset class. These ranges were combined to produce long-term expected rate of return by thetarget asset allocation percentage and by adding expected inflation. The target allocation and bestestimates of arithmetic and geometric real rates of return for each major asset class are summarized inthe following table:Projected Returns/RisksAsset ClassTargetAllocationOne YearArithmeticTen YearGeometricEquities38%8.85%7.39%International Equities 17% 9.55% 7.59%Fixed income 27% 3.05% 3.00%Real estate 8% 7.20% 6.00%Alternatives 9%Private equity 13.15% 8.15%Hedge funds 5.55% 5.25%Commodities 4.40% 2.75%Cash equivalents 1% 2.25% 2.25%Discount rate.The discount rate used to measure the total pension liability for IMRF was 7.48%. Thediscount rate calculated using the December 31, 2014 measurement date was 7.49%. The projection ofcash flows used to determine the discount rate assumed that member contributions will be made at thecurrent contribution rate and that City contributions will be made at rates equal to the difference betweenactuarially determined contribution rates and the member rate. Based on those assumptions, the fiduciarynet position was projected not to be available to make all projected future benefit payments of current planmembers. Therefore, the long-term expected rate of return on investments of 7.50% was blended with theindex rate of 3.57% for tax exempt 20-year general obligation municipal bonds with an average AA creditrating at December 31, 2015 to arrive at a discount rate of 7.48% used to determine the total pensionliability. The year ending December 31, 2086 is the last year in the 2016 to 2115 projection period forwhich projected benefit payments are fully funded.CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Discount rate sensitivity. The following is a sensitivity analysis of the net pension liability/(asset) tochanges in the discount rate. The table below presents the pension liability of the City calculated using thediscount rate of 7.48% as well as what the net pension liability/(asset) would be if it were to be calculatedusing a discount rate that is 1 percentage point lower (6.48%) or 1 percentage point higher (8.48%) thanthe current rate:1% Decrease CurrentDiscount Rate 1% IncreaseCity:Total pension liability$ 98,313,409 $ 87,093,580 $ 77,898,713Plan fiduciary net pension75,725,29475,725,29475,725,294Net pension liability/(asset)$ 22,588,115$ 11,368,286$ 2,173,419Library:Total pension liability $ 13,203,518 $ 11,696,692 $ 10,461,819Plan fiduciary net pension 10,169,92810,169,92810,169,928Net pension liability/(asset)$ 3,033,590$ 1,526,764$ 291,891Total:Total pension liability $ 111,516,927 $ 98,790,272 $ 88,360,532Plan fiduciary net pension 85,895,22285,895,22285,895,222Net pension liability/(asset)$ 25,621,705$ 12,895,050$ 2,465,310Changes in net pension liability/(asset). The City's changes in net pension liability/(asset) for the calendaryear ended December 31, 2015 was as follows:Increase (Decrease)Total PensionLiability (a)Plan Fiduciary NetPosition (b)Net PensionLiability/(Asset) (a)- (b)City:Balances at December 31, 2014$ 96,324,203 $ 89,834,842 $ 6,489,361Service cost1,549,831- 1,549,831Interest on total pension liability7,086,670- 7,086,670Differences between expected and actualexperience of the total pension liability796,382-796,382Change of assumptions103,436-103,436Transfer of liability(13,798,877)- (13,798,877)Benefit payments, including refunds ofemployee contributions(4,968,065) (4,968,065)-Contributions - employer- 1,757,095 (1,757,095)Contributions - employee-664,444(664,444)Net investment income-442,808(442,808)Other (net transfer)-(12,005,830)12,005,830Balances at December 31, 2015$ 87,093,580$ 75,725,294$ 11,368,286
D-2 228
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Increase (Decrease)Total PensionLiability (a)Plan Fiduciary NetPosition (b)Net PensionLiability/(Asset) (a)- (b)Library:Balances at December 31, 2014$ 12,936,367 $ 12,064,844 $ 871,523Service cost208,143-208,143Interest on total pension liability951,742-951,742Differences between expected and actualexperience of the total pension liability106,954-106,954Change of assumptions13,891-13,891Transfer of liability(1,853,193)- (1,853,193)Benefit payments, including refunds ofemployee contributions(667,212)(667,212)-Contributions - employer-235,978(235,978)Contributions - employee-89,235(89,235)Net investment income-59,469(59,469)Other (net transfer)-(1,612,386)1,612,386Balances at December 31, 2015$ 11,696,692$ 10,169,928$ 1,526,764Total:Balances at December 31, 2014 $ 109,260,570 $ 101,899,686 $ 7,360,884Service cost 1,757,974 - 1,757,974Interest on total pension liability 8,038,412 - 8,038,412Differences between expected and actualexperience of the total pension liability903,336 - 903,336Change of assumptions 117,327 - 117,327Transfer of liability (15,652,070) - (15,652,070)Benefit payments, including refunds ofemployee contributions(5,635,277) (5,635,277) -Contributions - employer - 1,993,073 (1,993,073)Contributions - employee - 753,679 (753,679)Net investment income - 502,277 (502,277)Other (net transfer) -(13,618,216)13,618,216Balances at December 31, 2015$ 98,790,272$ 85,895,222$ 12,895,050Pension expense and deferred outflows of resources and deferred inflows of resources relatedto pensions.For the year ended April 30, 2016, the City recognized pension expense of $2,515,161.The City reported deferred outflows and inflows of resources related to pension from the followingsources:CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)DeferredOutflows ofResourcesDeferredInflows ofResourcesCity:Difference between expected and actual experience$ 549,794 $ 104,269Assumption changes1,190,708-Net difference between projected and actual earnings on pensionplan investments5,678,431-Contributions subsequent to the measurement date503,281-Total$ 7,922,214$ 104,269Library:Difference between expected and actual experience $ 73,837 $ 14,003Assumption changes159,913-Net difference between projected and actual earnings on pensionplan investments762,615-Contributions subsequent to the measurement date76,199-Total$ 1,072,564$ 14,003Total:Difference between expected and actual experience $ 623,631 $ 118,272Assumption changes1,350,621-Net difference between projected and actual earnings on pensionplan investments6,441,046-Contributions subsequent to the measurement date579,480-Total$ 8,994,778$ 118,272The amount reported as deferred outflows resulting from contributions subsequent to the measurementdate in the above table will be recognized as a reduction in the net pension liability/(asset) for the yearending April 30, 2016. The remaining amounts reported as deferred outflows and inflows of resourcesrelated to pensions ($8,297,026) will be recognized in pension expense as follows:Year Ending December 31, CityLibraryTotal2016$ 2,680,476 $ 359,989 $ 3,040,46520171,850,833 248,567 2,099,40020181,543,493 207,292 1,750,78520191,239,862166,5141,406,376Total$ 7,314,664$ 982,362$ 8,297,026
D-3 229
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Police PensionPlan description. Police sworn personnel are covered by the Police Pension Plan, which is a definedbenefit single-employer pension plan. Although this is a single employer pension plan, the defined benefitsand employee and employer contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS5/3) and may be amended only by the Illinois legislature. The City accounts for the plan as a pension trustfund.As provided for in the Illinois Compiled Statutes, the Plan provides retirement benefits as well as deathand disability benefits to employees grouped into two tiers. Tier 1 is for employees hired prior to January 1,2011 and Tier 2 is for employees hired after that date. The following is a summary of the Police PensionFund as provided for in Illinois Compiled Statutes.Tier 1 - Covered employees attaining the age of 50 or more with 20 or more years of creditable service areentitled to receive an annual retirement benefit of one half of the salary attached to the rank on the lastday of service, or for one year prior to the last day, whichever is greater. The pension shall be increasedby 2.5% of such salary for each additional year of service over 20 years up to 30 years to a maximum of75% of such salary. Employees with at least 8 years but less than 20 years of credited service may retireat or after age 60 and receive a reduced retirement benefit. The monthly pension of a police officer whoretired with 20 or more years of service after January 1, 1977 shall be increased annually, following thefirst anniversary date of retirement and paid upon reaching at least the age 55, by 3% of the originalpension and 3% compounded annually thereafterTier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service areentitled to receive a monthly pension of 2.5% of the final average salary for each year of creditableservice. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75%of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50and receive a reduced retirement benefit. The monthly pension of a police shall be increased annually onthe January 1 occurring either on or after the attainment of age 60 or the first anniversary of the pensionstart date, whichever is later. Each annual increase shall be calculated at 3% or onehalf the annualunadjusted percentage increase in the CPI, whichever is lessPlan membership. At April 30, 2016, the Police Pension membership consisted of:Retirees and beneficiaries39Inactive, non-retired members7Active members40Total86CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Police Pension (cont.)Contributions. Covered employees are required to contribute 9.91% of their base salary to the PolicePension Plan. If an employee leaves covered employment with less than 20 years of service, accumulatedemployee contributions may be refunded without accumulated interest. The City is required to contributethe remaining amounts necessary to finance the plans as actuarially determined by an enrolled actuary.Effective January 1, 2011 the City’s contributions must accumulate to the point where the past servicecost for the Police Pension Plan is 90% funded by the year 2040. The City's actuarially determinedcontribution rate for the fiscal year ending April 30, 2016 was 48.04% of annual covered payroll.Net Pension Liability. The net pension liability was measured as of April 30, 2016, and the total pensionliability used to calculate the net pension liability was determined by an annual actuarial valuation as ofthat date.Summary of Significant Accounting Policies. The financial statements of the Police Pension Plan areprepared using the accrual basis of accounting. Plan member contributions are recognized in the period inwhich contributions are due. The City’s contributions are recognized when due and a formal commitmentto provide the contributions are made. Benefits and refunds are recognized when due and payable inaccordance with the terms of the plan.Plan investments are reported at fair value. Short-term investments are reported at cost, whichapproximated fair value. Investments that do not have an established market are reported at estimatedfair values.Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed asof April 30, 2016 using the following actuarial methods and assumptions:Actuarial cost methodEntry Age NormalAsset valuation methodMarket ValueActuarial assumptionsInterest rate 7.00%Inflation 2.50%Projected salary increases 5.50%Cost-of-living adjustments Tier 1 - 3.00%Tier 2 - 1.25%Mortality rates were based on the RP-2000 Combined Healthy Mortality Table with a blue collaradjustment and no projection and the RP-2000 Disabled Retiree Mortality table with no projection. Theactuarial assumptions were based on the results of an actuarial experience study conducted by theIllinois Department of Insurance in 2012.D-4 230
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Police Pension (cont.)Long-term expected real rate of return. See Note I.D.1 for police pension fund investment policy,including target allocation and long-term expected real rate of returns.Discount rate. The discount rate used to measure the total pension liability for the Police Pension Planwas 7.00%, the same as the prior valuation. The projection of cash flows used to determine the discountrate assumed that member contributions will be made at the current contribution rate and that Citycontributions will be made at rates equal to the difference between actuarially determined contributionrates and the member rate. Based on those assumptions, the Plan’s fiduciary net position was projectedto be available to make all projected future benefit payments of current plan members. Therefore, thelong-term expected rate of return on Plan investments was applied to all periods of projected benefitpayments to determine the total pension liability.Discount rate sensitivity.The following is a sensitivity analysis of the net pension liability to changes inthe discount rate. The table below presents the pension liability of the City calculated using the discountrate of 7.00% as well as what the net pension liability would be if it were to be calculated using adiscount rate that is 1 percentage point lower (6.00%) or 1 percentage point higher (8.00%) than thecurrent rate:1% DecreaseCurrentDiscount Rate 1% IncreaseTotal pension liability$ 59,757,901$ 52,622,210$ 46,728,713Plan fiduciary net position 27,404,16327,404,16327,404,163Net pension liability$ 32,353,738$ 25,218,047$ 19,324,550CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Police Pension (cont.)Changes in net pension liability/(asset).The City's changes in net pension liability/(asset) for the fiscalyear ended April 30, 2016 was as follows:Increase (Decrease)Total PensionLiability (a)Plan FiduciaryNet Position(b)Net PensionLiability/Asset (a) - (b)Balances at May 1, 2015$ 52,530,895 $ 28,025,755 $ 24,505,140Service cost883,178- 883,178Interest on total pension liability3,657,765- 3,657,765Differences between expected and actualexperience of the total pension liability(2,129,040)- (2,129,040)Benefit payments, including refunds of employeecontributions(2,320,588) (2,320,588)-Contributions - employer- 1,806,270 (1,806,270)Contributions - employee- 373,216 (373,216)Net investment income- (475,655) 475,655Administrative expenses-(4,835)4,835Balances at April 30, 2016$ 52,622,210$ 27,404,163$ 25,218,047Pension expense and deferred outflows of resources and deferred inflows of resources relatedto pensions.For the year ended April 30, 2016, the City recognized pension expense of $2,361,236.The City reported deferred outflows and inflows of resources related to pension from the followingsources:DeferredOutflows ofResourcesDeferredInflows ofResourcesDifference between expected and actual experience$- $ 1,774,200Net difference between projected and actual earnings on pensionplan investments1,932,141-Total$ 1,932,141$ 1,774,200
D-5 231
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Police Pension (cont.)The amounts reported as deferred outflows and inflows of resources related to pensions ($157,941) willbe recognized in pension expense as follows:Year Ending April 30,Amount2017$ 128,1962018128,1952019128,1952020128,1952021(354,840)Total$ 157,941Firefighters' PensionPlan description. Fire sworn personnel are covered by the Firefighters' Pension Plan, which is a definedbenefit single-employer pension plan. Although this is a single employer pension plan, the defined benefitsand employee and employer contribution levels are governed by Illinois State Statutes (Chapter 40 ILCS5/3) and may be amended only by the Illinois legislature. The City accounts for the plan as a pension trustfund.As provided for in the Illinois Compiled Statutes, the Firefighters' Pension Plan provides retirementbenefits as well as death and disability benefits to employees grouped into two tiers. Tier 1 is foremployees hired prior to January 1, 2011 and Tier 2 is for employees hired after that date. The following isa summary of the Firefighters' Pension Plan as provided for in Illinois Compiled Statutes.Tier 1 - Covered employees attaining the age of 50 or more with 20 or more years of creditable service areentitled to receive a monthly retirement benefit of one half of the monthly salary attached to the rank heldin the fire service at the date of retirement. The monthly pension shall be increased by one twelfth of 2.5%of such monthly salary for each additional month over 20 years of service through 30 years of service to amaximum of 75% of such monthly salary. Employees with at least 10 years but less than 20 years ofcredited service may retire at or after age 60 and receive a reduced retirement benefit. The monthlypension of a firefighter who retired with 20 or more years of service after January 1, 1977 shall beincreased annually, following the first anniversary date of retirement and paid upon reaching at least theage 55, by 3% of the original pension and 3% compounded annually thereafter.CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Firefighters' Pension (cont.)Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service areentitled to receive a monthly pension of 2.5% of the final average salary for each year of creditableservice. The salary is initially capped at $106,800 but increases annually thereafter and is limited to 75%of final average salary. Employees with 10 or more years of creditable service may retire at or after age 50and receive a reduced retirement benefit. The monthly pension of a firefighter shall be increased annuallyon the January 1 occurring either on or after the attainment of age 60 or the first anniversary of thepension start date, whichever is later. Each annual increase shall be calculated at 3% or one-half theannual unadjusted percentage increase in the CPI, whichever is less.Plan membership. At April 30, 2016, the Firefighters' Pension Plan membership consisted of:Retirees and beneficiaries37Inactive, non-retired members5Active members31Total73Contributions. Participants contribute a fixed percentage of their base salary to the plans. At April 30,2016, the contribution percentage was 9.455%. If a participant leaves covered employment with less than20 years of service, accumulated participant contributions may be refunded without accumulated interest.The City is required to contribute the remaining amounts necessary to finance the plans as actuariallydetermined by an enrolled actuary. Effective January 1, 2011, the City’s contributions must accumulate tothe point where the past service cost for the Firefighters' Pension Plan is 90% funded by the year 2040.The City's actuarially determined contribution rate for the fiscal year ending April 30, 2016 was 41.59% ofannual covered payroll. Net pension liability. The net pension liability was measured as of April 30,2016, and the total pensionliability used to calculate the net pension liability was determined by an annual actuarial valuation as ofthat date.Summary of significant accounting policies. The financial statements of the Firefighters' Pension Planare prepared using the accrual basis of accounting. Plan member contributions are recognized in theperiod in which contributions are due. The City’s contributions are recognized when due and a formalcommitment to provide the contributions are made. Benefits and refunds are recognized when due andpayable in accordance with the terms of the plan.Plan investments are reported at fair value. Short-term investments are reported at cost, whichapproximated fair value. Investments that do not have an established market are reported at estimatedfair values.D-6 232
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Firefighters' Pension (cont.)Actuarial assumptions. The total pension liability was determined by an actuarial valuation performed asof April 30, 2016 using the following actuarial methods and assumptions:Actuarial cost methodEntry Age NormalAsset valuation methodMarket ValueActuarial assumptionsInterest rate 7.00%Inflation 2.50%Projected salary increases 5.50%Cost-of-living adjustments Tier 1 - 3.00%Tier 2 - 1.25%Mortality rates were based on the RP-2000 Combined Healthy Mortality Table with a blue collaradjustment and no projection and the RP-2000 Disabled Retiree Mortality Table with no projection. Theactuarial assumptions were based on the results of an actuarial experience study conducted by theIllinois Department of Insurance in 2012.Long-term expected real rate of return. Seen Note I.D. 1 for Firefighters' Pension Fund investmentpolicy, including target allocation and long-term expected real rate of return.Discount rate. The discount rate used to measure the total pension liability for the Firefighters' PensionPlan was 7.00%, the same as the prior valuation. The projection of cash flows used to determine thediscount rate assumed that member contributions will be made at the current contribution rate and thatCity contributions will be made at rates equal to the difference between actuarially determinedcontribution rates and the member rate. Based on those assumptions, the Plan’s fiduciary net positionwas projected to be available to make all projected future benefit payments of current plan members.Therefore, the long-term expected rate of return on Plan investments was applied to all periods ofprojected benefit payments to determine the total pension liability.CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Firefighters' Pension (cont.)Discount rate sensitivity.The following is a sensitivity analysis of the net pension liability to changes inthe discount rate. The table below presents the pension liability of the City calculated using the discountrate of 7.00% as well as what the net pension liability would be if it were to be calculated using adiscount rate that is 1 percentage point lower (6.00%) or 1 percentage point higher (8.00%) than thecurrent rate:1% DecreaseCurrentDiscount Rate 1% IncreaseTotal pension liability$ 51,990,610$ 45,820,158$ 40,734,986Plan fiduciary net position 31,897,07431,897,07431,897,074Net pension liability$ 20,093,536$ 13,923,084$ 8,837,912Changes in net pension liability/(asset).The City's changes in net pension liability/(asset) for the fiscalyear ended April 30, 2016 was as follows:Increase (Decrease)Total PensionLiability (a)Plan FiduciaryNet Position(b)Net PensionLiability/Asset (a) - (b)Balances at May 1, 2015$ 43,938,314 $ 32,257,990 $ 11,680,324Service cost926,420- 926,420Interest on total pension liability3,072,945- 3,072,945Differences between expected and actualexperience of the total pension liability(186,474)- (186,474)Benefit payments, including refunds of employeecontributions(1,931,047) (1,931,047)-Contributions - employer- 1,216,585 (1,216,585)Contributions - employee- 298,046 (298,046)Net investment income- 60,335 (60,335)Administration-(4,835)4,835Balances at April 30, 2016$ 45,820,158$ 31,897,074$ 13,923,084
D-7 233
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Firefighters' Pension (cont.)Pension expense and deferred outflows of resources and deferred inflows of resources relatedto pensions.For the year ended April 30, 2016, the City recognized pension expense of $1,893,408.The City reported deferred outflows and inflows of resources related to pension from the followingsources:DeferredOutflows ofResourcesDeferredInflows ofResourcesDifference between expected and actual experience$- $ 155,395Assumption changes--Net difference between projected and actual earnings on pensionplan investments1,721,332-Total$ 1,721,332$ 155,395The amounts reported as deferred outflows and inflows of resources related to pensions ($1,565,937)will be recognized in pension expense as follows:Year Ending April 30,Amount2017$ 399,2542018399,2542019399,2542020399,2542021(31,079)Total$ 1,565,937CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)PENSION SEGMENT INFORMATIONFiduciary Net PositionPension TrustPolicePensionFirefighters'PensionTotalAssetsCash $ 3,284 $ 9,105 $ 12,389Money markets 206,800 1,013,613 1,220,413InvestmentsU.S. treasury obligations 9,388,651 2,978,653 12,367,304U.S. government agencies 561,984 3,273,789 3,835,773Municipal/corporate bonds 1,078,672 6,156,158 7,234,830Equity mutual funds 13,179,094 18,352,27731,531,371Real estate investment fund 1,731,650 - 1,731,650Common stock 1,196,746 - 1,196,746Prepaids 13,084 9,169 22,253Other 54,318107,158161,476 Total Assets27,414,28331,899,92259,314,205LiabilitiesAccounts payable10,1202,84812,968 Total Liabilities10,1202,84812,968Net PositionRestricted for pension benefits$ 27,404,163$ 31,897,074$ 59,301,237
D-8 234
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)A.EMPLOYEES' RETIREMENT SYSTEM(cont.)Changes in Plan Net PositionPension TrustPolice PensionFirefighters'PensionTotalAdditionsContributionsEmployer $ 1,806,270 $ 1,216,585 $ 3,022,855Employee 373,216 297,946 671,162Miscellaneous revenues 3,2111003,311 Total Contributions2,182,6971,514,6313,697,328Investment IncomeInterest 488,783 775,613 1,264,396Net appreciation (depreciation) in fair value ofinvestments(854,895)(623,694)(1,478,589)Total Investment income(366,112) 151,919 (214,193)Less Investment expense (112,754)(91,584)(204,338) Net investment income(478,866)60,335(418,531) Total Additions1,703,8311,574,9663,278,797DeductionsPension benefits and refunds 2,320,588 1,931,047 4,251,635Other administrative expenses 4,8354,8359,670 Total Deductions2,325,4231,935,8824,261,305Change in net position(621,592) (360,916) (982,508)Net position, beginning of year28,025,75532,257,99060,283,745Net position, end of year$ 27,404,163$ 31,897,074$ 59,301,237B. RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets;errors and omissions; injuries to employees; and natural disasters. The City accounts for its risk of loss inthe Liability Insurance Fund through payments to the Intergovernmental Risk Management Agency.CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)E. OTHER POSTEMPLOYMENT BENEFITS Plan DescriptionIn addition to providing the pension benefits described in Note IV. A., the City and Library (hereinafter City)provide post-employment health care benefits (OPEB) for retired employees. Hereinafter, the medical anddental plan benefits offered are referred to as the "Plan." The Plan offers several medical and dentalinsurance benefits options to eligible retirees and their dependents. The benefits, benefit levels, employeecontributions and employer contributions are governed by the City Council and can only be amended bythe City Council. The Plan is not accounted for as a trust fund and an irrevocable trust has not beenestablished. The City does not issue a Plan financial report. Funding PolicyThe contribution requirements of plan members and the City are established and may be amended by theCity Council and are detailed in the various plan benefit booklets provided to employees. The requiredcontribution is based on projected pay-as-you-go financing requirements. For fiscal year 2016 the Citycontributed $185,185, representing current premiums. The City’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annualrequired contribution of the employer (ARC), an amount actuarially determined in accordance with theparameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoingbasis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (orfunding excess) over a period not to exceed thirty years. The following table shows the components of theCity’s annual OPEB cost for the year, the amount actually contributed to plan, and changes in the City’snet OPEB obligation to the Retiree Health Plan:CityLibraryAnnual required contribution$ 232,335 $ 23,831Interest on net OPEB obligation9,1791,245Adjustment to annual required contribution(7,649)(1,037)Annual OPEB cost233,86524,039Contributions made(178,803)(6,382)Increase in net OPEB obligation55,06217,657Net OPEB Obligation - Beginning of Year229,47631,114Net OPEB Obligation - End of Year$ 284,538$ 48,711
D-9 235
CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)E. OTHER POSTEMPLOYMENT BENEFITS(cont.)The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the netOPEB obligation for 2016 and the two preceding years were as follows:Fiscal Year EndedAnnual OPEBCostPercentage ofAnnual OPEBCostContributedNet OPEBObligationCity:April 30, 2014 $ 146,631 100.30 $ 201,037April 30, 2015224,73987.30 229,476April 30, 2016233,86576.46 284,538Library:April 30, 2014 $ 3,8420.00 $ 12,212April 30, 201522,99617.80 31,114April 30, 201624,03926.55 48,771The funded status of the plan as of April 30, 2015, the most recent actuarial valuation date, was asfollows:CityLibraryActuarial accrued liability (AAL)$ 3,786,380 $ 272,766Actuarial value of plan assets--Unfunded Actuarial Accrued Liability (UAAL) $ 3,786,380$ 272,766Funded ratio (actuarial value of plan assets/AAL)-%-%Covered payroll (active plan members)$ 18,087,734 $ 1,288,196UAAL as a percentage of covered payroll20.93%21.17%The projection of future benefit payments for an ongoing plan involves estimates for the value of reportedamounts and assumptions about the probability of occurrence of events far into the future. Examplesinclude assumptions about future employment, mortality, and the healthcare cost trend. Amountsdetermined regarding the funded status of the plan and annual required contributions of the employer aresubject to continual revision as actual results are compared with past expectations and new estimates aremade about the future. The schedule of funding progress, presented as required supplementaryinformation following the notes to the financial statements, presents multiyear trend information that showswhether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarialaccrued liabilities for benefits.CITY OF LAKE FORESTNOTES TO FINANCIAL STATEMENTSAs of and for the Year Ended April 30, 2016NOTE IV - OTHER INFORMATION (cont.)E. OTHER POSTEMPLOYMENT BENEFITS(cont.)Projections of benefits for financial reporting purposes are based on the substantive plan (the plan asunderstood by the employer and plan members) and include the types of benefits provided at the time ofeach valuation and the historical pattern of sharing benefit costs between the employer and plan membersto that point. The methods and assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-termperspective of the calculations.In the April 30, 2015, actuarial valuation, the entry age actuarial cost method was used. The actuarialassumptions included a 4.0 percent investment rate of return (net of administrative expenses), which is ablended rate of the expected long-term investment returns on plan assets and on the employer's owninvestments calculated based on the funded level of the plan at the valuation date, and an annualhealthcare cost trend rate of 10 percent initially, reduced by decrements to an ultimate rate of 5.5 percentultimately. Both rates included a 3.0 percent inflation assumption. The actuarial value of assets weredetermined using market value. The UAAL is being amortized as a level percentage of projected payrollon an open basis. The remaining amortization period at April 30, 2015 was 30 years.F. SUBSEQUENTEVENTS On September 23, 2016, the City sold land on Laurel Avenue for a sale price of $12,000,000. Thisproperty will be included in the City’s capital asset reductions for the fiscal year ending April 30, 2017. D-10 236
6HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGDFFRPSDQ\LQJQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQCITY OF LAKE FORESTILLINOIS MUNICIPAL RETIREMENT FUND6&+('8/(2)&+$1*(6,17+(&,7<
61(73(16,21/,$%,/,7<$1'5(/$7('5$7,260RVW5HFHQW)LVFDO<HDUCityLibraryTotalTotal pension liability6HUYLFHFRVW ,QWHUHVW 'LIIHUHQFHVEHWZHHQH[SHFWHGDQGDFWXDOH[SHULHQFH &KDQJHVRIDVVXPSWLRQV 7UDQVIHURIOLDELOLW\ %HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRIPHPEHUFRQWULEXWLRQV Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position(PSOR\HUFRQWULEXWLRQV (PSOR\HHFRQWULEXWLRQV 1HWLQYHVWPHQWLQFRPH %HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRIPHPEHUFRQWULEWXLRQV 2WKHU QHWWUDQVIHU Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) Employer's net pension liability - ending (a) - (b) Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll Employer's net pension liability as a percentage of covered-employee payroll Notes to Schedule:7KH&LW\LPSOHPHQWHG*$6%6WDWHPHQW1RLQILVFDO\HDU,QIRUPDWLRQSULRUWRILVFDO\HDULVQRWDYDLODEOH20166HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGDFFRPSDQ\LQJQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQCITY OF LAKE FORESTILLINOIS MUNICIPAL RETIREMENT FUND6&+('8/(2)(03/2<(5&2175,%87,2160RVW5HFHQW)LVFDO<HDUCityLibraryTotal$FWXDULDOO\GHWHUPLQHGFRQWULEXWLRQ &RQWULEXWLRQVLQUHODWLRQWRWKHDFWXDULDOO\GHWHUPLQHGFRQWULEXWLRQ &RQWULEXWLRQGHILFLHQF\ H[FHVV &RYHUHGHPSOR\HHSD\UROO &RQWULEXWLRQVDVDSHUFHQWDJHRIFRYHUHGHPSOR\HHSD\UROONotes to Schedule:9DOXDWLRQGDWH 0HWKRGVDQGDVVXPSWLRQVXVHGWRGHWHUPLQHFRQWULEXWLRQUDWHV $FWXDULDOFRVWPHWKRG$PRUWL]DWLRQPHWKRG5HPDLQLQJDPRUWL]DWLRQSHULRG$VVHWYDOXDWLRQPHWKRG,QIODWLRQ6DODU\LQFUHDVHV,QYHVWPHQWUDWHRIUHWXUQ5HWLUHPHQW$JH0RUWDOLW\53&+%&$2WKHULQIRUPDWLRQ 7KHUHZHUHQREHQHILWFKDQJHVGXULQJWKH\HDU2016WRLQFOXGLQJLQIODWLRQ([SHULHQFHEDVHGWDEOHRIUDWHVWKDWDUHVSHFLILFWRWKHW\SHRIHOLJLELOLW\FRQGLWLRQ$FWXDULDOO\GHWHUPLQHGFRQWULEXWLRQUDWHVDUHFDOFXODWHGDVRI'HFHPEHURIWKH\HDUSULRUWRWKHILVFDO\HDULQZKLFKFRQWULEXWLRQVDUHUHSRUWHG7KH&LW\LPSOHPHQWHG*$6%6WDWHPHQW1RLQILVFDO\HDU,QIRUPDWLRQSULRUWRILVFDO\HDULVQRWDYDLODEOH(QWU\DJHQRUPDO/HYHOSHUFHQWDJHRISD\UROOFORVHG \HDUV<HDU6PRRWKHG0DUNHWD-11 237
6HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQ20152016Total pension liability6HUYLFHFRVW ,QWHUHVW 'LIIHUHQFHVEHWZHHQH[SHFWHGDQGDFWXDOH[SHULHQFH &KDQJHVRIDVVXPSWLRQV %HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRIPHPEHUFRQWULEXWLRQV 2WKHU Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position(PSOR\HUFRQWULEXWLRQV (PSOR\HHFRQWULEXWLRQV 1HWLQYHVWPHQWLQFRPH %HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRIPHPEHUFRQWULEXWLRQV $GPLQLVWUDWLYHH[SHQVHV Net change in plan fiduciary net position Plan fiduciary net position - beginningPlan fiduciary net position - ending (b)City's net pension liability - ending (a) - (b)Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll City's net pension liability as a percentage of covered-employee payroll Notes to Schedule:7KH3HQVLRQLPSOHPHQWHG*$6%6WDWHPHQW1RLQILVFDO\HDU,QIRUPDWLRQSULRUWRILVFDO\HDULVQRWDYDLODEOHCITY OF LAKE FORESTPOLICE PENSION FUND6&+('8/(2)&+$1*(6,17+(&,7<
61(73(16,21/,$%,/,7<$1'5(/$7('5$7,26/DVW7ZR)LVFDO<HDUVChanges of assumptions.)RU)LVFDO<HDUWKHPRUWDOLW\GLVDELOLW\WXUQRYHUDQGUHWLUHPHQWDVVXPSWLRQVZHUHUHYLVHGWRUHIOHFWWKHPRVWUHFHQWVWXG\FRQGXFWHGE\WKH,OOLQRLV'HSDUWPHQWRI,QVXUDQFH__________________________________ THIS PAGE INTENTIONALLY LEFT BLANK _________________________________ D-12 238
6HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQCITY OF LAKE FORESTPOLICE PENSION FUND6&+('8/(2)(03/2<(5&2175,%87,216/DVW7HQ)LVFDO<HDUV2007200820092010$FWXDULDOO\GHWHUPLQHGFRQWULEXWLRQ &RQWULEXWLRQVLQUHODWLRQWRWKHDFWXDULDOO\GHWHUPLQHGFRQWULEXWLRQ &RQWULEXWLRQGHILFLHQF\ H[FHVV &RYHUHGHPSOR\HHSD\UROO &RQWULEXWLRQVDVDSHUFHQWDJHRIFRYHUHGHPSOR\HHSD\UROO Notes to Schedule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
UHSRUWDQGQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQ201120122013201420152016
D-13 239
6HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQ20152016$QQXDOPRQH\ZHLJKWHGUDWHRIUHWXUQQHWRILQYHVWPHQWH[SHQVH Notes to Schedule:7KH3HQVLRQLPSOHPHQWHG*$6%6WDWHPHQW1RLQILVFDO\HDU,QIRUPDWLRQSULRUWRILVFDO\HDULVQRWDYDLODEOHCITY OF LAKE FORESTPOLICE PENSION FUND6&+('8/(2),19(670(175(78516/DVW7ZR)LVFDO<HDUV6HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQ20152016Total pension liability6HUYLFHFRVW ,QWHUHVW 'LIIHUHQFHVEHWZHHQH[SHFWHGDQGDFWXDOH[SHULHQFH &KDQJHVRIDVVXPSWLRQV%HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRIPHPEHUFRQWULEXWLRQV Net change in total pension liability Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position(PSOR\HUFRQWULEXWLRQV (PSOR\HHFRQWULEXWLRQV 1HWLQYHVWPHQWLQFRPH 0LVFHOODQHRXVUHYHQXH %HQHILWSD\PHQWVLQFOXGLQJUHIXQGVRIPHPEHUFRQWULEXWLRQV $GPLQLVWUDWLYHH[SHQVHV Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) City's net pension liability - ending (a) - (b) Plan fiduciary net position as a percentage of the total pension liability Covered-employee payroll City's net pension liability as a percentage of covered-employee payroll Notes to Schedule:7KH3HQVLRQLPSOHPHQWHG*$6%6WDWHPHQW1RLQILVFDO\HDU,QIRUPDWLRQSULRUWRILVFDO\HDULVQRWDYDLODEOHChanges of assumptions.)RU)LVFDO<HDUWKHPRUWDOLW\GLVDELOLW\WXUQRYHUDQGUHWLUHPHQWDVVXPSWLRQVZHUHUHYLVHGWRUHIOHFWWKHPRVWUHFHQWVWXG\FRQGXFWHGE\WKH,OOLQRLV'HSDUWPHQWRI,QVXUDQFHCITY OF LAKE FORESTFIREFIGHTERS' PENSION FUND6&+('8/(2)&+$1*(6,17+(&,7<
61(73(16,21/,$%,/,7<$1'5(/$7('5$7,26/DVW7ZR)LVFDO<HDUVD-14 240
6HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQCITY OF LAKE FORESTFIREFIGHTERS' PENSION FUND6&+('8/(2)(03/2<(5&2175,%87,216/DVW7HQ)LVFDO<HDUV2007200820092010$FWXDULDOO\GHWHUPLQHGFRQWULEXWLRQ &RQWULEXWLRQVLQUHODWLRQWRWKHDFWXDULDOO\GHWHUPLQHGFRQWULEXWLRQ &RQWULEXWLRQGHILFLHQF\ H[FHVV &RYHUHGHPSOR\HHSD\UROO &RQWULEXWLRQVDVDSHUFHQWDJHRIFRYHUHGHPSOR\HHSD\UROO Notes to Schedule:9DOXDWLRQGDWH $FWXDULDOO\GHWHUPLQHGFRQWULEXWLRQVDUHFDOFXODWHGDVRI0D\RIWKHFXUUHQWILVFDO\HDU0HWKRGVDQGDVVXPSWLRQVXVHGWRGHWHUPLQHFRQWULEXWLRQUDWHV $FWXDULDOFRVWPHWKRG$PRUWL]DWLRQPHWKRG5HPDLQLQJDPRUWL]DWLRQSHULRG$VVHWYDOXDWLRQPHWKRG6DODU\LQFUHDVHV,QYHVWPHQWUDWHRIUHWXUQ5HWLUHPHQWDJH0RUWDOLW\(QWU\DJHQRUPDO7KH3HQVLRQLPSOHPHQWHG*$6%6WDWHPHQW1RLQILVFDO\HDU,QIRUPDWLRQSULRUWRILVFDO\HDULVGHULYHGIURPDFWXDULDOYDOXDWLRQVGHYHORSHGLQFRQIRUPLW\ZLWK*$6%6WDWHPHQW1RDQG0RUWDOLW\UDWHVZHUHEDVHGRQWKH530RUWDOLW\7DEOH/HYHOSHUFHQWDJHRISD\UROOFORVHG \HDUV0DUNHWYDOXHQHWRISHQVLRQSODQLQYHVWPHQWH[SHQVH6HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQ201120122013201420152016
D-15 241
6HHLQGHSHQGHQWDXGLWRUV
UHSRUWDQGQRWHVWRUHTXLUHGVXSSOHPHQWDU\LQIRUPDWLRQ20152016$QQXDOPRQH\ZHLJKWHGUDWHRIUHWXUQQHWRILQYHVWPHQWH[SHQVHNotes to Schedule:7KH3HQVLRQLPSOHPHQWHG*$6%6WDWHPHQW1RLQILVFDO\HDU,QIRUPDWLRQSULRUWRILVFDO\HDULVQRWDYDLODEOHCITY OF LAKE FORESTFIREFIGHTERS' PENSION FUND6&+('8/(2),19(670(175(78516/DVW7ZR)LVFDO<HDUVCITY OF LAKE FORESTOTHER POSTEMPLOYMENT BENEFITS PLANSCHEDULE OF EMPLOYER CONTRIBUTIONS AND SCHEDULE OF FUNDING PROGRESSFor the Year EndedApril 30, 2016Schedule of Annual Required Contributions - CityYear EndedAnnualRequiredContributionPercentageContributed04/30/16$ 232,33577.0 %04/30/15223,39987.9 %04/30/14145,288101.2 %04/30/1394,95466.9 %04/30/1294,95471.2 %04/30/1189,201- %Schedule of Annual Required Contributions - LibraryYear EndedAnnualRequiredContributionPercentageContributed04/30/16$ 23,83126.8 %04/30/1522,91517.8 %04/30/143,7860.0 %04/30/132,7270.0 %04/30/122,7270.0 %04/30/112,7430.0 %Schedule of Funding Progress - CityActuarialValuationDateActuarial Valueof Assets(a)ActuarialAccruedLiability (AAL) -Entry Age(b)Unfunded AAL(UAAL) (b-a)FundedRatio (a/b)Covered Payroll(c)UAAL as aPercentage ofCoveredPayroll((b-a)/c)04/30/15 $- $ 3,786,380 $ 3,786,3800% $ 18,087,734 20.93%04/30/13- 2,363,491 2,363,4910% 16,930,261 13.96%04/30/11- 1,495,528 1,495,5280% 19,037,9217.86%Schedule of Funding Progress - LibraryActuarialValuationDateActuarial Valueof Assets(a)ActuarialAccruedLiability (AAL) -Entry Age(b)Unfunded AAL(UAAL) (b-a)FundedRatio (a/b)Covered Payroll(c)UAAL as aPercentage ofCoveredPayroll((b-a)/c)04/30/15 $- $ 272,766 $ 272,7660% $ 1,288,196 21.17%04/30/13-34,11334,1130% 1,306,9792.61%04/30/11-22,59022,5900% 1,246,6331.81%See independent auditors' report and accompanying notes to required supplementary information.D-16 242
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 133,752.50
AVERAGE LIFE 14.154 Years Years
243
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.
244
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 The Bank of New York
Mellon Trust Company, National Association, 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.
245
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.
246
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
247
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
248
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
249
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 $5,000 each or authorized integral multiples thereof (but no single Bond
shall represent installments of principal maturing on more than one date), and shall be
numbered 1 and upward. The Bonds shall become due and payable serially (subject to prior
redemption as hereinafter set forth) on December 15 of each of the years, in the amounts and
bearing interest per annum as follows:
250
YEAR OF
MATURITY
PRINCIPAL
AMOUNT ($)
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
251
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
252
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
253
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
254
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
255
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
256
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
257
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.
258
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]:
259
[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.
260
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.
261
[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
262
[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
263
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.
264
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.
265
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
266
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
267
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
268
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.
269
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;
270
(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
271
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.
272
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.
273
The City of Lake Forest
CITY COUNCIL
Proceedings of the Monday, May 1, 2017
City Council Meeting - City Council Chambers, 6:30pm
First Session
CALL TO ORDER AND ROLL CALL: Honorable Mayor Schoenheider called the meeting to order at 6:35pm,
and City Clerk Margaret Boyer called the roll of Council members.
Present: Honorable Mayor Schoenheider, Alderman Waldeck, Alderman Beidler, Alderman Pandaleon,
Alderman Newman, Alderman Tack, Alderman Reisenberg, Alderman Moreno and Alderman Buschmann.
Absent: None.
Also present were: Robert Kiely Jr., City Manager; Catherine Czerniak, Director of Community Development,
Elizabeth Holleb, Director of Finance; Victor Filippini, City Attorney; Susan Banks, Communications
Manager; Michael Thomas, Director of Public Works; Karl Walldorf, Chief of Police; Pete Siebert, Fire Chief;
Mike Strong, Assistant to the City Manager along with other members of City Staff.
There were approximately 90 persons present in the Council Chamber.
CALL TO ORDER AND ROLL CALL 6:35 pm
Lake Forest Police Color Guard presented the United States Flag for the Pledge of Allegiance.
PLEDGE OF ALLEGIANCE was recited by all those present in the Chamber.
REPORTS OF CITY OFFICERS
COMMENTS BY MAYOR
Mayor Schoenheider reported that the City of Lake Forest has been recognized for the restoration of Forest
Park by the American Public Works Association. He invited Dan Strahan and Ralph Gesualdo to the podium.
A. American Public Works Association Award Presentation for Forest Park
-Dan Strahan, Lake County Branch APWA, Chicago Metro Chapter
Mr. Strahan reported that the restoration project not only won an award as Project of the Year at the Local
County Level, but at a Regional level too. He presented the award to Ralph Gesualdo of the Forest Park
Project Board. Mr. Gesualdo thanked the City Council and Staff for their trust and support. He also reported
on the fundraising for the project and stated ways to support the project, including a visit to
forestparkproject.com to find information. Mayor Schoenheider reported that the Forest Park Board was
one of the first groups that he worked with, and that in his 41/2 years as Mayor, he has not seen a group
who is more dedicated, inspired and committed. He stated that he is proud of this accomplishment and the
continuation of the City’s of Public Private Partnerships.
B. Resolution of Sympathy for Jane S. O’Neil
Mayor Schoenheider read the resolution and conveyed the Sympathy of the Council.
COUNCIL ACTION: Approval of the Resolution
Alderman Newman made a motion to approve the resolution, seconded by Alderman Beidler. Motion
carried unanimously by voice vote
274
Proceedings of the Monday, May 1, 2017
Regular City Council Meeting- First Session
Item not on the agenda: a Proclamation for Municipal Clerks week May 7- 13, in recognition of Municipal
Clerks was presented to Margaret Boyer, Lake Forest City Clerk by Mayor Schoenheider.
C. Consideration of Acceptance of the Report and Recommendations Prepared by Teska
Associates, Inc. on the City’s Plan Review, Permitting and Inspection Processes and
Acceptance of the Related Implementation Plan (Approve by Motion)
Mayor Schoenheider reported that Teska presented a report at the last City Council meeting. Mayor
Schoenheider reported that the Community Development staff has prepared an Implementation Plan
identifying near term and longer term actions that will be taken to implement the recommendations of the
report, support continuous process improvements and enhance communications.
The City Council had discussion on policy and the continuation of seeking improvements.
COUNCIL ACTION: Approve a motion accepting the Report and Recommendations prepared by Teska
Associates, Inc. on the City’s Plan Review, Permitting and Inspection Processes and accepting the
Implementation Report.
Alderman Beidler made a motion in favor of accepting the Report and Recommendations prepared by Teska
Associates, Inc. on the City’s Plan Review, Permitting and Inspection Processes and accepting the
Implementation Report, seconded by Alderman Reisenberg. The following voted “Aye”: Aldermen Waldeck,
Beidler, Pandaleon, Newman, Tack, Reisenberg, Moreno and Buschmann. The following voted “Nay”: None.
8- Ayes, 0 Nays, motion carried.
COMMENTS BY CITY MANAGER
COMMENTS BY COUNCIL MEMBERS
FINANCE COMMITTEE
A. Approval of the Comprehensive Fiscal Plan for FY2018
George Pandaleon, Finance Committee Chairman, introduced Elizabeth Holleb, Finance Director. Ms. Holleb
reported that this item closes process that began last September, and while it is referred to as the
comprehensive fiscal plan, it is the budget. However, the budget also serves as the plan for resources and
expenses, which includes the five year Capital improvement program and the five year financial forecast for
primary funds for the City. Ms. Holleb gave an overview of the budget highlights. She noting the following
changes have been made to the budget figures since the March 13 Finance Committee meeting:
• Compensation adjustments are now reflected within the operating department budgets with the
exception of Police, pending contract approval
• The income tax revenue estimate for FY18 has been lowered to reflect ongoing shortfalls in the
distributions from the State of Illinois
In summary the current financial condition of the City is excellent, the City has healthy fund balance
reserves, a Aaa Bond rating, and the lowest property tax in Lake County. The City continues to face long
term financial challenges with expense growth outpacing revenue growth and the State budget Crisis. The
proposed expenditures for FY2018 total $93,503,465. The proposed plan is balanced with all operating
expenditures covered from current revenues and capital expenditures funded from current revenues and
reserves in excess of the City Council’s Fiscal Policy.
275
Proceedings of the Monday, May 1, 2017
Regular City Council Meeting- First Session
The City Council had a discussion regarding expenses that are not categorized, projection of revenues and
expenses, revenues by line item and inflation rates, where the budget is published, what other
communities are doing and what the concerns of the Northwest Municipal Conference.
Mayor Schoenheider thanked Elizabeth Holleb and her team and asked if there was anyone from the public
who would like to comment. Seeing none, he asked for a motion.
COUNCIL ACTION: Approval of the Comprehensive Fiscal Plan for Fiscal Year 2018
Alderman Moreno made a motion for approval of the Comprehensive Fiscal Plan for Fiscal Year 2018,
seconded by Alderman Newman. The following voted “Aye”: Aldermen Waldeck, Beidler, Pandaleon,
Newman, Tack, Reisenberg, Moreno and Buschmann. The following voted “Nay”: None. 8- Ayes, 0 Nays,
motion carried.
B. Annual Vendor Approval
Finance Director Elizabeth Holleb reported this is an annual administrative item. In 2011, the City Council
approved Code amendments revising the method for approving vendors. Consistent with the revised policy,
payments for services provided on an unspecified ongoing basis exceeding $20,000 annually. The attached
list provided and shows the vendors approved for FY2012-FY2017 as well as the recommendations
submitted for City Council approval for FY2018. Ms. Holleb asked the Council to note that IRMA(Illinois Risk
Management Association- Liability and Workers Comp Insurance) should have been included on the list at
1.2 million, consistent with 2017.
The City Council had discussion about the on names on and not on the list.
Mayor Schoenheider asked if there was anyone from the public who would like to comment. Seeing none,
he asked for a motion.
COUNCIL ACTION: Approval of the attached list of vendors (page 26) for Fiscal Year 2018.
Alderman Moreno made a motion for approval of the amended attached list of Vendors for Fiscal Year 2018
to include IRMA at 1.2 million, seconded by Alderman Newman. The following voted “Aye”: Aldermen
Waldeck, Beidler, Pandaleon, Newman, Tack, Reisenberg, Moreno and Buschmann. The following voted
“Nay”: None. 8- Ayes, 0 Nays, motion carried.
C. Approval of the FY18 Personnel Policies and Practices and Pay Plan
DeSha Kalmar, Director of Human Resources reported that policies are compliant and that the City is using
best practices, and any changes are then approved as part of the budget. This year there were modest
changes that included clarifying language, longevity pay, State law on sick leave act, flex spending account
and health wellness plan.
Ms. Kalmar reported that the FY2018 Pay Plan has been adjusted to include range adjustments of 1.0% for
Steps 1-6 and 2.5% for Step 7 per City Council discussion at the March budget meeting. Some positions
received a slightly larger adjustment as approved by the City Council at the budget meeting in order to
maintain competitiveness.
276
Proceedings of the Monday, May 1, 2017
Regular City Council Meeting- First Session
Mayor Schoenheider asked if there was anyone from the public who would like to comment. Seeing none,
he asked for a motion.
COUNCIL ACTION: Approval of the FY18 Personnel Policies and Practices and FY18 Pay Plan.
Alderman Waldeck made a motion for Approval of the FY18 Personnel Policies and Practices and FY18 Pay
Plan, seconded by Alderman Newman. The following voted “Aye”: Aldermen Waldeck, Beidler, Pandaleon,
Newman, Tack, Reisenberg, Moreno and Buschmann. The following voted “Nay”: None. 8- Ayes, 0 Nays,
motion carried.
PROPERTY AND PUBLIC LANDS
A. Consideration of Recommendations from the Property and Public Lands Committee and
Building Review Board in Support of Various Actions Related to the McKinley Road
Redevelopment Project. (Approval of a Resolution and Ordinance)
Alderman Reisenberg, Chairman, Property and Public Lands Committee reported the City Council previously
approved the Master Plan for McKinley Road development referred to as Cultural Corridor. The outstanding
issue of the sale of 361 Westminster which was the previous home of the Historical Society. The PPL’s
original vision included 361 Westminster as part of the comprehensive development, but the developer was
not initially interested. As a result the City had the property appraised. Since then the developer changed its
mind and made the City a fair offer that was in keeping with the appraisal. The offer was approve by the PPL
at their last meeting, that offer as explained in the packet is before the Council for approval. Additionally
Chairman Reisenberg stated the PPL is also seeking approval of an ordinance that was unanimously
recommended by the building review board, approving the architectural and site design, an overall plan
with inclusion of 361 Westminster will go back to BRB to be finalized and come back to the City Council at a
later date.
Mayor Schoenheider asked if there were any questions for Alderman Reisenberg. Seeing none, he asked for
a motion.
COUNCIL ACTION: By motion, approve a Resolution directing the execution of the Purchase, Sale and
Development Agreement in substantially the form presented subject to confirmation by the City Manager
and City Attorney that the necessary conditions are satisfied.
AND
If determined to be appropriate by the City Council, waive first reading and grant final approval of an
Ordinance approving the petition as recommended by the Building Review Board.
Alderman Pandaleon made a motion to approve a Resolution directing the execution of the Purchase, Sale
and Development Agreement in substantially the form presented subject to confirmation by the City
Manager and City Attorney that the necessary conditions are satisfied. And waive first reading and grant
final approval of an Ordinance approving the petition as recommended by the Building Review Board,
seconded by Alderman Reisenberg. The following voted “Aye”: Aldermen Waldeck, Beidler, Pandaleon,
Newman, Tack, Reisenberg, Moreno and Buschmann. The following voted “Nay”: None. 8- Ayes, 0 Nays,
motion carried.
OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS
ITEMS FOR OMNIBUS VOTE CONSIDERATION
277
Proceedings of the Monday, May 1, 2017
Regular City Council Meeting- First Session
1. Approval of the April 17, 2017 City Council Meeting Minutes
2. Check Register for the period March 25- April 21, 2017
3. Consideration to Waive Purchasing Requirement for Competitive Pricing per
Administrative Directive 3-5, and Award a Three year Contract for Advertising in relation to
the Lake Forest Marketing Campaign in the amount of $49,992.00 to JWC Media.
COUNCIL ACTION: Approval of the three (3) Omnibus items as presented
Mayor Schoenheider reported that item number 3 will be removed. He asked members of the Council if
they would like to remove any other item or take it separately. Mayor Schoenheider asked for a motion to
approve the two Omnibus items with noted amendments to the minutes.
Alderman Waldeck made a motion to approve the two Omnibus items as presented, seconded by Alderman
Beidler. The following voted “Aye”: Aldermen Waldeck, Beidler, Pandaleon, Newman, Tack, Reisenberg,
Moreno and Buschmann. The following voted “Nay”: None. 8- Ayes, 0 Nays, motion carried.
Information such as Purpose and Action Requested, Background/Discussion, Budget/Fiscal Impact,
Recommended Action and a Staff Contact as it relates to the Omnibus items can be found on the agenda.
ORDINANCES
NEW BUSINESS
1. Consideration of the 2017-2021 City Strategic Plan
Management Intern Octavius Hayes reported that the City of Lake Forest remains committed to its four
cornerstones: Family, Education, Tradition and Philanthropy, noting the importance of periodically
identifying the state of the City and ensure the City is carrying on the broader visionary concepts of its
forefathers.
Mr. Hayes gave a presentation of the proposed 2017-2021 Strategic Plan that included the result of several
months of voluntary community engagement with residents during 2016-17, such as; the Community Wide
Survey, the “Future for All Generations” Event and Strategic Planning Retreat. The plan represents the
direction the City wants to take to continue to preserve the character and values of the Lake Forest
community as it moves forward.
COUNCIL ACTION: Approval of 2017-2021 City Strategic Plan
Alderman Reisenberg made a motion Approval of 2017-2021 City Strategic Plan, seconded by Alderman
Beidler. The following voted “Aye”: Aldermen Waldeck, Beidler, Pandaleon, Newman, Tack, Reisenberg,
Moreno and Buschmann. The following voted “Nay”: None. 8- Ayes, 0 Nays, motion carried.
ADDITIONAL ITEMS FOR COUNCIL DISCUSSION
278
Proceedings of the Monday, May 1, 2017
Regular City Council Meeting- First Session
1. Presentation of Fabulous Gifts and Prizes
-Robert Kiely, City Manager
Robert Kiely, City Manager presented Alderman Waldeck, Alderman Pandaleon and Mayor Schoenheider
with a certificate for a tree to be planted in their honor and personalized City street signs.
2. Final words for the departing Aldermen from the remaining Council Members
Each Alderman expressed sincere gratitude for the service of retiring Alderman Waldeck, Alderman
Pandaleon and Mayor Schoenheider saying a few words regarding their service to the City.
2. Final comments from Alderman Waldeck, Alderman Pandaleon, Alderman Adelman and
Mayor Schoenheider
Alderman Waldeck, Alderman Pandaleon and Mayor Schoenheider each made closing remarks to the
Council, Residents and Staff about their tenure on the City Council.
ADJOURNMENT
There being no further business, Mayor Schoenheider asked for a motion to adjourn. Alderman Waldeck
made a motion to adjourn, seconded by Alderman Pandaleon. Motion carried unanimously by voice vote at
8:08 p.m.
Respectfully Submitted
Margaret Boyer
A video of the City Council meeting is available for viewing at the Lake Forest Library and on file in the Clerk’s
office at City Hall. You can also view it on the website by visiting www.cityoflakeforest.com. Click on I Want
To, then click on View, then choose Archived Meetings Videos.
279
The City of Lake Forest
CITY COUNCIL
Proceedings of the Monday, May 1, 2017
City Council Meeting - City Council Chambers, 6:30pm
Second Session
CALL FOR ORGANIZATION OF THE 2017-2018 CITY COUNCIL
At 8:17 City Clerk Margaret Boyer called for the Organization of the 2017-2018 City Council.
FORMER MAYOR HOWARD KERR ADMINISTERS THE OATH OF OFFICE TO:
Mayor-Elect—Robert T.E. Lansing
City Manager Robert Kiely invited former Mayor Kerr and the Family of Mayor-Elect Lansing to the Dias.
Former Mayor Kerr administered the Oath of Office.
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
City Manager Robert Kiely invited the Alderman-Elect to the Dias. The City Clerk administered the Oath of
Office.
CALL TO ORDER AND ROLL CALL: Honorable Mayor Lansing called the second session meeting to order at
8:20 pm, and City Clerk Margaret Boyer called the roll of Council members.
Present: Honorable Mayor Lansing, Alderman Beidler, Alderman Morris, Alderman Newman, Alderman
Rummel, Alderman Tack, Alderman Reisenberg, Alderman Moreno and Alderman Buschmann.
Absent: None.
Also present were: Robert Kiely Jr., City Manager; Catherine Czerniak, Director of Community Development,
Elizabeth Holleb, Director of Finance; Victor Filippini, City Attorney; Susan Banks, Communications
Manager; Michael Thomas, Director of Public Works; Karl Walldorf, Chief of Police; Pete Siebert, Fire Chief;
Mike Strong, Assistant to the City Manager along with other members of City Staff.
There were approximately 90 persons present in the Council Chamber.
ELECTION AND APPOINTMENT OF CITY OFFICERS
Mayor Lansing made the following appointments:
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
280
Proceedings of the Monday, May 1, 2017
Regular City Council Meeting- Second Session
City Clerk Margaret Boyer
City Surveyor and Engineer Gewalt Hamilton Associates
COUNCIL ACTION: Approve the Mayors Appointments
Alderman Moreno made a motion to approve the Mayors appointment’s, seconded by Alderman
Reisenberg. Motion carried unanimously by voice vote.
REPORTS OF CITY OFFICERS
COMMENTS BY MAYOR
Mayor Lansing stated that it is an honor and privilege to serve as Mayor for the City of Lake Forest.
A. RESOLUTION OF APPRECIATION FOR WARD 1 ALDERMAN CATHERINE WALDECK
Mayor Lansing read the resolution, stepped off the dais and presented it to Alderman Waldeck.
COUNCIL ACTION: Approve the Resolution
Alderman Beidler made a motion to approve Resolution, seconded by Alderman Tack. Motion carried
unanimously by voice vote.
B. RESOLUTION OF APPRECIATION FOR WARD 2 ALDERMAN GEORGE PANDALEON
Mayor Lansing read the resolution, stepped off the dais and presented it to Alderman Pandaleon.
COUNCIL ACTION: Approve the Resolution
Alderman Newman made a motion to approve Resolution, seconded by Alderman Reisenberg. Motion
carried unanimously by voice vote.
C. RESOLUTION OF APPRECIATION FOR WARD 4 ALDERMAN MICHAEL ADELMAN
Mayor Lansing read the resolution and it will be presented at a later date to Alderman Pandaleon.
COUNCIL ACTION: Approve the Resolution
Alderman Buschmann made a motion to approve Resolution, seconded by Alderman Beidler. Motion carried
unanimously by voice vote.
D. RESOLUTION OF APPRECIATION FOR MAYOR DONALD P. SCHOENHEIDER
Mayor Lansing read the resolution, stepped off the dais and presented it to Mayor Schoenheider.
COUNCIL ACTION: Approve the Resolution
Alderman Rummel made a motion to approve Resolution, seconded by Alderman Morris. Motion carried
unanimously by voice vote.
E. 2017-2018 Board and Commission Appointments/Reappointments
Mayor Lansing made the following appointments and reappointments:
BUILDING REVIEW BOARD
NAME OF MEMBER APPOINT/REAPPOINT WARD
James Diamond Reappoint 3
Robert Reda Reappoint 1
Ross Friedman Reappoint 4
281
Proceedings of the Monday, May 1, 2017
Regular City Council Meeting- Second Session
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
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 COMMISSION
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
282
Proceedings of the Monday, May 1, 2017
Regular City Council Meeting- Second Session
Jason Maxwell Reappoint 4
Ken Weinberger Reappoint 2
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
COUNCIL ACTION: Approve the Mayors Appointments and Reappointments
Alderman Reisenberg made a motion to approve the Mayors Appointments and Reappointments, seconded
by Alderman Beidler. Motion carried unanimously by voice vote.
F. Approval of a Resolution of Appreciation for Retiring Members of Boards and Commissions
as follows:
Mayor Lansing made the following appointments and reappointments:
BOARD, COMMISSION OR COMMITTEE NAME OF MEMBER(S)
283
Proceedings of the Monday, May 1, 2017
Regular City Council Meeting- Second Session
BUILDING REVIEW BOARD Michael Bleck
CROYA Alana Hender, Rebecca Quackenbush
GORTON John Looby
HISTORIC PRESERVATION COMMISSION Susan Athenson
LIBRARY Lynn Casper
PLAN COMMISSION/ZBA Lloyd Culbertson
ELAWA Samuel Henry, Patricia Moore
COUNCIL ACTION: Approve the Resolution
Alderman Moreno made a motion to approve the resolution, seconded by Alderman Rummel. Motion
carried unanimously by voice vote.
G. Approval of Liaison position to Lake Forest Open Lands.
Mayor Lansing reported for purposes of improved communications, the City will be appointing Alderman
Buschmann to the role of liaison with Lake Forest Open Lands.
COUNCIL ACTION: Approve the Liaison position
Alderman Reisenberg made a motion to approve the Liaison position, seconded by Alderman Beidler.
Motion carried unanimously by voice vote.
H. Announcement of City Council Committee Appointments.
Mayor Lansing gave a brief overview of Committee Appointments.
COMMENTS BY CITY MANAGER
City Manager Robert Kiely Jr., congratulated and welcomed the new City Council members. He also
reminded residents about the Ward Meetings, beginning on May 8, at Gorton Community Center, May 17,
at Gorton Community Center, May 18 at Fire Station 2 and May 31 at Cherokee School.
COMMENTS BY COUNCIL MEMBERS
OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS
ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approval of the Regularly Scheduled Meetings of the Lake Forest City Council for the
year 2018
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
COUNCIL ACTION: Approval of the two (2) Omnibus items as presented
284
Proceedings of the Monday, May 1, 2017
Regular City Council Meeting- Second Session
Mayor Lansing asked members of the Council if they would like to remove any item or take it separately.
The City Council had discussion on item #2. Mayor Lansing asked for a motion to approve the two Omnibus
items as presented.
Alderman Beidler made a motion to approve the two Omnibus items as presented, seconded by Alderman
Reisenberg. The following voted “Aye”: Aldermen Beidler, Morris, Newman, Rummel, Tack, Reisenberg,
Moreno and Buschmann. The following voted “Nay”: None. 8- Ayes, 0 Nays, motion carried.
Information such as Purpose and Action Requested, Background/Discussion, Budget/Fiscal Impact,
Recommended Action and a Staff Contact as it relates to the Omnibus items can be found on the agenda.
ORDINANCES
NEW BUSINESS
1. Consideration of an Ordinance Authorizing the Issuance of General Obligation Bonds,
Series 2017 (First Reading)
Elizabeth Holleb, Finance Director reported staff requests approving the first reading of an ordinance
authorizing issuance of 2017 general obligation bonds. 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.
Ms. Holleb reported that next steps are Bond auctions and the interest rating on this bond issue which 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.
The City Council had discussion on the anticipated interest rates and the number of bids received in 2015.
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.
Alderman Reisenberg made a motion to approve first reading of the bond ordinance, seconded by Alderman
Tack. The following voted “Aye”: Aldermen Beidler, Morris, Newman, Rummel, Tack, Reisenberg, Moreno
and Buschmann. The following voted “Nay”: None. 8- Ayes, 0 Nays, motion carried.
ADDITIONAL ITEMS FOR COUNCIL DISCUSSION
ADJOURNMENT
There being no further business. Alderman Rummel made a motion to adjourn, seconded by Alderman
Newman. Motion carried unanimously by voice vote at 8:55p.m.
285
Proceedings of the Monday, May 1, 2017
Regular City Council Meeting- Second Session
Respectfully Submitted
Margaret Boyer
A video of the City Council meeting is available for viewing at the Lake Forest Library and on file in the Clerk’s
office at City Hall. You can also view it on the website by visiting www.cityoflakeforest.com. Click on I Want
To, then click on View, then choose Archived Meetings Videos.
286
Memorandum
To: Robert Kiely Jr., City Manager
The City of Lake Forest Council
From: Robert Ells, Superintendent of Engineering
Date: April 25, 2017
Subject: Telegraph Metra Station Pedestrian Underpass
The following memorandum is intended to provide both background
information and an update on the Telegraph Metra Station Pedestrian
Underpass project.
In 2010, the City received a total of $2M in State and Federal aid monies in
anticipation of spearheading a project to eliminate the at-grade crossing at
the Telegraph Road Metra Station. The purpose of the project is to both
improve overall safety and assist in attracting a future Amtrak stop in Lake
Forest.
Federal High Speed Rail (HSR) grant from the USDOT - 1,000,000.00
State HSR grant (Grade Crossing Protection Fund) - $1,000,000.00*
In March, 2012, the City awarded a contract to HDR, Inc. to perform Phase I
preliminary design services for the Telegraph Metra Station Pedestrian
Underpass Project. The cost of this contract was $208,485.93 and was paid
for by The City of Lake Forest. HDR prepared eight design concepts for City
review. The basis of design for all of the alternatives was the overwhelming
input from Metra and their tenant railroads that there be no interruption to
train schedules during the entire construction of an underpass. This meant
that a pedestrian tunnel would need to be installed using a Jack & Bore
method under the live railroad tracks. City Council ultimately chose option
2b which became known as the “Bowl Design”. Upon completion and
approval of the preliminary design phase in June, 2013, the estimated
project cost was $5,000,000.00.
The City entered into a Phase II final design contract with HDR in the fall of
2013. The design fee for Phase II was $549,673.00 to be paid at an 80/20
split with the Federal grant paying the 80% and the State paying the 20%.
Once detailed design work and geotechnical studies were underway, it was
determined that the anticipated structural concept of using sheeting and
piles to reinforce the retaining wall systems along the track would not be
287
adequate due to soil conditions. The basis of the structural design was
changed to a drilled shaft concept which increased the estimated cost of the
project significantly.
As the plans and supporting design documents were being finalized for
submission to IDOT and Metra for review in November, 2014, HDR notified
the City that they had incurred significant cost overruns in preparing the
design. HDR submitted documentation with a request for additional design
fees in the amount of $241,632.81. Much of the increase was due to the
change in structural systems required for the construction of the retaining
walls; the Phase II design proposal detailing deliverables called for a total of
30 structural plan sheets, the final design package contained 93.
After review of project documentation, staff determined the total additional
design effort to be valued at $195,375.75. Because HDR did not receive
prior approval from the City or IDOT before exceeding the contract value,
City staff sent a request for a supplement to the Engineering Services
Agreement to IDOT for review. The State subsequently amended both the
Local Agency Agreement and the Engineering Services Agreement in the
amount of $195,375.75 and has set aside State HSR grant funds to cover
100% of the design fee supplement. The supplement was approved by City
Council in March, 2016; the City paid the supplemental amount and was
reimbursed by the State.
At the conclusion of the Phase II final design, the project construction
estimate was $10,807,627.00 with an estimated construction engineering
cost of $1,200,000.00 bringing the anticipated total cost to just over $12
million dollars. With an allowance for permits, fees and construction
contingency, the expected cost is approximately $13,000,000.00. After
discussions with Metra on strategies to move forward with the project, the
City hired a third-party consultant to verify the HDR cost data. Using the
HDR design data, the consultant priced the cost of constructing the “bowl
design” at $13,438,403.
With the estimated costs associated with constructing a pedestrian
underpass using the traditional construction method of boring and jacking
the tunnel under the tracks now verified, the City once again met with Metra
officials. The discussion centered around changing the method of
construction from installing an underground tunnel to constructing a train
bridge that would require limited, scheduled track outages but greatly
reduce the construction costs.
Before signing a Memorandum of Understanding (MOU) with the City for this
change in design concept, Metra has asked for detailed information on the
new concept with emphasis on the number and duration of track outages
needed for construction. The City accepted a proposal from Hanson in the
288
amount of $100,000.00 to prepare a concept study for the train bridge
alternative and provide the data required by Metra. State funds paid for
100% of this study on a reimbursable basis.
Metra has not signed the MOU but has given assurances that they support
the new design concept including limited track outages.
Funding:
The table below shows the expenditures to date, pending and fund balances.
In September, 2014 the city was notified that the federal HSR grant money
had reached the four-year expiration and that any funds not yet obligated
were withdrawn. The 80% federal share of the Phase II design
($439,738.00) was obligated by agreement but because design was ongoing
and construction not scheduled, the City had no other means to obligate/
use the funds before expiration.
Expenditure
City
Fed. HSR
State IJN*
Original Balance
$208,485.93
$1,000,000.00
$1,000,000.00
Phase I Design
$208,485.93
- -
Phase II Design
-
$439,738.00
$109,935.00
Phase II Supplement
-
- $195,375.75
Hanson Cost Analysis $19,825
Hanson Concept Study -
- $101,359.25
Totals $228,310.93
$439,738.00
$406,670.00
Balance $0.00
$0.00
$ 593,330.00
Hanson Phase I Design $281,421
Balance $311,909
* At some point the State switched their funding obligation for this work
from State HSR monies to the Illinois Jobs Now (IJN) program.
289
Next steps:
• City Council approval of the Train Bridge Concept design agreement
with Hanson (May 15, 2017)
• Secure approved State funding document authorizing100%
reimbursement for the design services (estimated completion June 8,
2017)
• Secure both a State approved Consultant Agreement between Hanson
and The City and an approved Joint Agreement between the City and
IDOT (estimated completion Sep 15, 2017)
• Begin the detailed design process for a train bridge pedestrian
underpass at the Telegraph Metra Station (estimated completion May
15, 2018)
• Enter into an MOU with Metra agreeing to the new construction
method upon completion of the Phase I Engineering (estimated
completion June 15, 2018)
290
Lake Forest Phase I Engineering Proposal – Telegraph Station
Hanson Professional
Services Inc.
815 Commerce Drive,
Suite 200
Oak Brook, IL 60523
(630) 990-3800
Fax: (630) 990-3801
www.hanson-inc.com
May 10, 2017
Mr. Robert Ells
Superintendent of Engineering
City of Lake Forest
800 N. Field Drive
Lake Forest, IL 60045
RE: Telegraph Road Station, Pedestrian Underpass Phase I Preliminary Engineering
Transmitted via email
Dear Mr. Ells:
Hanson Professional Services Inc. (Hanson) is pleased to provide this proposal for Phase I
Preliminary Engineering services for the Telegraph Road train station pedestrian underpass.
Hanson previously prepared a study that determined that a railroad bridge over the pedestrian
path would likely be a more economical alternative to the originally developed and approved
plans that featured a tunnel jacked under the tracks. The principal purpose of the services
outlined herein is to prepare a Revised Phase I Project Development Report (PDR) for a
pedestrian underpass featuring a bridge rather than the tunnel at the Telegraph Road Metra
train station.
TASK 1 – Topographic Survey
Hanson will utilize the topographic survey data that was previously furnished by the City. Since
the survey was prepared by others, Hanson will survey selected features from the existing
survey for quality control and will survey existing features that appear to have changed or were
missing from the original survey. Hanson will also perform minimal supplemental survey to pick
up additional points as needed for the design.
Assumptions:
Benchmarks and control points from the existing survey will be provided to Hanson.
Existing right-of-way from the furnished survey is valid and additional research is not
necessary.
Lake Forest will coordinate with Metra to have the Right-Of-Entry permit fee and flagger
costs waived.
TASK 2 – Phase I Civil and Drainage Design Activities
Hanson will develop a concept site plan for the proposed pedestrian facilities and modifications
to the existing parking lots. Anticipated exhibits include plan and profile sheets, typical sections,
291
- 2 -
Lake Forest Phase I Engineering Proposal – Telegraph Station
and ADA ramp details including running grades and cross slopes for all ramps including curb
ramps adjacent to the parking lot(s). Preliminary quantities will be estimated based on this
design. Right-of-way and easement proposed by the previous study will be evaluated.
A JULIE design stage locate request will be submitted to verify the list of utilities in the original
PDR. Hanson will request atlases from the utilities identified by JULIE as being within the limits
of the project. The City of Lake Forest will furnish Hanson with existing municipal utility plans
including storm sewer, sanitary sewer, and water mains. Hanson will coordinate with Metra to
locate utilities within their right-of-way. Potential utility conflicts identified in the original PDR
include two fiber optic cables located parallel to the tracks and railroad signaling equipment.
Hanson will confirm these potential conflicts and will determine whether there are additional
potential conflicts.
Hanson will prepare a Drainage Technical Memorandum in lieu of a full Location Drainage
Study, similar to what was provided in the original approach. This technical memorandum will
include preliminary storm sewer calculations, a location map and existing & proposed drainage
plan sheets. Per the IDOT BDE 40-2.02, a separate Hydraulic Report is required in Phase I for
the pumping station. This hydraulic report will include the pump design, detail sheets and an
evaluation of alternatives.
As a subconsultant to Hanson, Smithgroup JJR will provide limited architectural detailing and
landscaping guidance during Phase. This effort is limited to assistance in stair/ramp layout
revisions, and verification that the current general architectural and landscaping elements are
accommodated appropriately in the cost estimate. Architectural detailing and landscaping will be
refined in Phase II.
Assumptions:
Detailed architectural and/or landscaping plans are not included in Phase I. The
preparation of such plans will be a Phase II activity.
Lighting revisions to the original Phase I concept are not included with this task.
No detention is required per the Lake County requirements
There are no known existing deficiencies in the drainage system which would need to be
corrected under this project
There are no updated floodplain or floodway locations in the project area more recent
than those shown in the FEMA FIRM most recently revised 09/18/2013.
Analysis of temporary drainage will be a Phase II activity.
TASK 3 – Phase I Structural Design Activities
Hanson will prepare a Preliminary Bridge Design and Hydraulic Report (PBDHR) and a Type,
Size, and Location (TSL) drawing for the proposed railroad bridge over the proposed pedestrian
path, and TSL drawings for the proposed retaining walls. Preliminary design calculations for the
bridge will be performed to size the beams, foundation system, and bridge layout. Preliminary
design of the pedestrian underpass walls and floor will be conducted. Preliminary design
292
- 3 -
Lake Forest Phase I Engineering Proposal – Telegraph Station
calculations for the retaining walls will be conducted to identify the wall layouts and appropriate
wall type. Hanson will investigate the construction sequencing to determine likely temporary
shoring limits.
Preliminary quantities will be estimated based on the preliminary design and element sizing.
The structural design is to be based on the recommendations provided in the geotechnical
report by Geo Services, Inc. dated January 2015. As a subconsultant to Hanson, limited
supplemental geotechnical guidance will be provided by Geo Services, Inc. during Phase I.
Additional borings and Structure Geotechnical Report development will occur during Phase II
efforts.
Assumptions:
Lake Forest or Metra to provide existing track structure and station as-builts within the
project limits. Metra to provide platform details to be used on the proposed bridge.
No permits beyond a Metra Right-Of-Entry Permit are required.
Estimated placeholders for aesthetic treatments will be incorporated into the Phase I
costs. Detailed aesthetic development and coordination will occur during Phase II.
Contingent IDOT approval of bridge and wall TSLs will be sought during Phase I.
Approval status will be contingent upon completion of Structure Geotechnical Report in
Phase II.
TASK 4 – Phase I Project Development Report Activities
Hanson will prepare a revised Project Development Report (PDR). Effectively, Hanson will be
adding an additional alternate to the original PDR. It is anticipated that IDOT will require that the
Revised PDR document include a narrative describing the reasons for the revision, sections of
the PDR that need updating, and new exhibits. The sections of the PDR that need to be
updated include Section 2, “Proposed Improvement”; Section 4, “Right-of-Way”; Section 8,
“Special Waste”; Section 9, “Environmental Survey”, Section 11, “Maintenance-of-Traffic”;
Section 13, “Coordination”; and Section 14, “Other Coordination. The exhibits that Hanson will
prepare include the overall site plan, section through underpass, typical sections of stairs and
ramps, detailed ADA ramp plans, and bridge/wall TSLs. IDOT now considers the preparation of
detailed ADA ramp plans including elevations, grades, and cross slopes to be a Phase I design
activity.
It is expected that two submittals will be required to obtain design approval.
To update PDR Sections 8 and 9, Hanson will renew environmental clearances (biological,
wetland and cultural resources) previously obtained in response to the Environmental Survey
Request that was submitted as a part of the original PDR. Hanson will submit a request to IDOT
District 1 to renew the biological clearance. To revalidate the PESA results, Hanson will conduct
a site visit, check the environmental database, and draft a memo for District review.
293
- 4 -
Lake Forest Phase I Engineering Proposal – Telegraph Station
Assumptions:
The revised PDR will continue to be processed as a State Approved (formerly known as
CE I) Categorical Exclusion.
This scope does not include preparation of a separate environmental NEPA document
(EA or EIS).
The site involves no wetlands that require delineation or mitigation.
ESR exhibits do not need to be prepared.
A PESA revalidation will be acceptable. A new PESA is not required.
No additional analysis of alternatives will be required.
Public involvement requirements have already been fulfilled. Therefore, public
involvement activities are not included in the scope of services.
TASK 5 – Project Administration and Management
Managing the Phase I project successfully includes reporting of the progress of the project and
attending meetings. Hanson will provide internal project management, including monthly review
of project status, budget, and schedule. It is anticipated that Hanson will attend one IDOT kick-
off meeting, up to two IDOT/FHWA coordination meetings to obtain Phase I design approval,
and one IDOT review meeting. In addition, Hanson anticipates up to two meetings with Metra
and Amtrak, and two meetings with Lake Forest.
EXCLUSIONS TO THE SCOPE OF SERVICES
The following items are not anticipated and are not included within the scope of services.
Should any of these items be required, Hanson can provide services at an extra cost to be
negotiated later.
1. Construction phase services
2. Phase II engineering services
3. Visualizations or renderings of any kind
4. Lake County Permitting
5. Traffic Counts
6. A New PESA
7. ESR Exhibits
8. Land Acquisition Services
9. Traffic Management Plan
10. Public Meetings or Hearings
11. Intersection Design Studies
12. Section 4(f) or Section 6(f) Land Evaluation
13. Noise Analysis
14. COSIM Analysis
15. Wetlands delineation or mitigation
16. Crash analysis
294
- 5 -
Lake Forest Phase I Engineering Proposal – Telegraph Station
The proposed fee for the above tasks $281,421.
If you have questions regarding the scope of services, please don’t hesitate to give me a call at
(630) 368-2064.
If this proposal is agreeable to you, we would be happy to prepare a contract for execution and
begin work on the Phase I Preliminary Engineering as soon as practical.
Sincerely,
James P. Messmore, P.E.
Sr. Vice President
Hanson Professional Services Inc.
295
296
297