CITY COUNCIL 2018/11/05 AgendaTHE CITY OF LAKE FOREST
CITY COUNCIL AGENDA
Monday, November 5, 2018, 6:30pm
City Hall Council Chambers
220 E. Deerpath, Lake Forest
Honorable Mayor, Robert Lansing
Prudence R. Beidler, Alderman First Ward Jack Reisenberg, Alderman Third Ward
James E. Morris, Alderman First Ward James Preschlack, 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 6:30p.m.
PLEDGE OF ALLEGIANCE
REPORTS OF CITY OFFICERS
1. COMMENTS BY MAYOR
A. Report on North Beach Access Road Donations
2. COMMENTS BY CITY MANAGER
A. Community Spot Light
- Lake Forest College
-Stephen Schutt, President
3. COMMITTEE REPORTS
AUDIT COMMITTEE REPORT
1. Audit Committee Report-Fiscal Year 2018 Annual Financial Report
PRESENTED BY: Vincent Sparrow, Audit Committee Chairman
STAFF CONTACT: Elizabeth Holleb, Finance Director (847-810-3612)
PURPOSE AND ACTION REQUESTED: The Audit Committee and Staff requests receipt of the audit
report for the fiscal year ended April 30, 2018.
BACKGROUND/DISCUSSION: The Comprehensive Annual Financial Report (CAFR) for the fiscal
year ended April 30, 2018 is provided beginning on page 15. A bound copy of the CAFR is
available upon request and an electronic copy will be made available on the City web site
following City Council acceptance of the report. The document has been reviewed by the
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Monday, November 5, 2018 City Council Agenda
Audit Committee with Baker Tilly Virchow Krause, the City’s independent audit firm, and has
been accepted by the Audit Committee. The City has received an unmodified opinion on its
Fiscal Year 2018 financial statements.
The City has been awarded the Certificate of Achievement for Excellence in Financial
Reporting from the Government Finance Officers Association for thirty-nine consecutive years.
This year’s report will once again be submitted to GFOA for consideration of this award.
The Audit Committee met four times in 2018 and highlights of those meetings as well as the
audit report will be presented this evening by Audit Committee Chairman Sparrow.
COUNCIL ACTION: Receipt of the audit report for the fiscal year ended April 30, 2018
FINANCE COMMITTEE
1. Determination of Non-Binding Estimate of the Amount of Revenue to be generated
from Property Taxes for the 2018 Calendar Year in Accordance with the Truth in
Taxation Statute and Establishment of a Public Hearing Date for the 2018 Tax Levy (if
required)
PRESENTED BY: Elizabeth Holleb, Finance Director (847-810-3612)
PURPOSE AND ACTION REQUESTED: Staff requests City Council approval of a non-binding
estimate of the amount of revenue to be generated from property taxes in calendar year 2018
and setting of a public hearing date if this estimate exceeds 105% of the prior year’s tax
extension in accordance with State Statutes.
BACKGROUND/DISCUSSION: Under the Truth in Taxation Act, the City Council is required to
determine the estimated amount of money to be raised by taxation twenty (20) days prior to
the adoption of the annual tax levy. The amount determined is an estimate, and may be
increased or decreased under the statute, provided that any increase does not exceed 105%
of the prior year’s tax extension without the required notice and public hearing. This estimate
is preliminary and initiates the public process for the 2018 tax levy by establishing an estimated
amount from which staff can prepare a proposed levy ordinance. A discussion regarding the
2018 tax levy is scheduled for the November 26 Finance Committee budget workshop. The tax
levy ordinance will be considered by the City Council on November 19 and again on
December 3, 2018.
The 2018 property tax levy estimate, as considered by the Finance Committee on October 15,
is as follows:
Levy 2017 Extended 2018 Levy Estimate % Increase (Decr.)
Aggregate Levy $ 29,776,420 $ 30,630,085 2.87%
Debt Service Levy 1,536,807 1,653,115 7.57%
TOTAL LEVY $ 31,313,227 $ 32,283,200 3.10%
The increase in the aggregate levy is comprised primarily of the following:
• 2.10% overall increase in compliance with the tax cap applicable to 2018 levies under
the Property Tax Extension Limitation Law (PTELL),
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Monday, November 5, 2018 City Council Agenda
• an increase due to new construction as estimated by the Lake County Assessor’s Office,
• an increase in funding requirements for police and fire pension as established by a
4/30/18 independent actuarial valuation, and
• Required debt service levy amounts as established by bond ordinances approved at
the time of debt issuance.
The total levy as estimated above would result in a projected $87 (2.64%) increase in the tax bill
of an average home ($800,000 market value). A public hearing would not be required under
the Truth in Taxation Act.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
Finance Committee 10/15/18 Approval of 2018 Tax Levy Estimate
City Council Workshop 9/17/18 Preliminary discussion of 2018 Tax Levy
COUNCIL ACTION: Approval of Determination of an Estimate of the Amount of Revenue to be
generated from Property Taxes for the 2018 Calendar Year and establishment of December 3,
2018 as a public hearing date (if required) in Accordance with the Truth in Taxation Statute
4. OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS
5. ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approval of the October 15, 2018 City Council Meeting Minutes
A copy of the minutes can be found beginning on page 223
COUNCIL ACTION: Approval of the October 15, 2018 City Council Meeting Minutes.
2. Approval of the Check Register for Period of September 22 – October 26, 2018
STAFF CONTACT: Elizabeth Holleb, Finance Director (847-810-3612)
BACKGROUND/DISCUSSION: City Code Section 38.02 sets forth payment procedures of the
City. The Director of Finance is to prepare a monthly summary of all warrants to be drawn on
the City treasury for the payment of all sums due from the City (including all warrants relating
to payroll and invoice payments) by fund and shall prepare a detailed list of invoice
payments which denotes the person to whom the warrant is payable. The warrant list detail
of invoice payments shall be presented for review to the Chairperson of the City Council
Finance Committee for review and recommendation. All items on the warrant list detail
recommended for payment by the Finance Committee Chairperson shall be presented in
summary form to the City Council for approval or ratification. Any member of the City
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Monday, November 5, 2018 City Council Agenda
Council shall, upon request to the City Manager or Director of Finance, receive a copy of the
warrant list detail as recommended by the Finance Committee Chairperson. The City
Council may approve the warrant list as so recommended by the Finance Committee
Chairperson by a concurrence of the majority of the City Council as recorded through a roll
call vote.
The Council action requested is to ratify the payments as summarized below. The associated
payroll and invoice payments have been released during the check register period noted.
Following is the summary of warrants as recommended by the Finance Committee
Chairperson:
The total for “All Other Funds” includes $139,000 from the Special Recreation Fund, $86,000
from the Library Fund and $75,000 in the Insurance Fund.
COUNCIL ACTION: Approval of the Check Register for the Period of September 22 – October
26, 2018
3. Approval of Health Insurance Contract Renewals
STAFF CONTACT: DeSha Kalmar, Director of Human Resources (847-810-3530)
PURPOSE AND ACTION REQUESTED: PCA Committee and Staff are recommending retaining
current health plan providers. Benefit changes and modifications to the City’s Think Healthy
wellness program effective this year are meeting expectations.
BACKGROUND/DISCUSSION: The City provides a self-funded medical and dental plan and
insured life insurance, transplant coverage, and reinsurance for large claims and total liability.
The cost is determined by forecasts based on actual claims, fixed costs for administration,
reinsurance, and costs for life insurance. Human Resources, through a collaborative process
with employee work groups, is recommending no changes to the health insurance benefits
Fund Invoice Payroll Total
101 General 538,798 1,125,468 1,664,266
501 Water & Sewer 130,446 129,488 259,934
220 Parks & Recreation 132,727 344,102 476,828
311 Capital Improvements 188,864 0 188,864
202 Motor Fuel Tax 0 0 0
230 Cemetery 37,933 20,543 58,477
210 Senior Resources 13,532 20,619 34,152
510 Deerpath Golf Course 29,216 2,068 31,284
601 Fleet 116,384 38,545 154,929
416 - 433 Debt Funds 750 0 750
248 Housing Trust 0 0 0
201 Park & Public Land 0 0 0
All other Funds 437,203 130,800 568,003
$1,625,853 $1,811,633 $3,437,487
Check Register for September 22 - October 26, 2018
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Monday, November 5, 2018 City Council Agenda
for employees. Staff requested bids for Stop Loss coverage and evaluated proposals for
Pharmacy providers. Staff is recommending renewing with current providers for January of
2019.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
PCA Committee 11/5/18 Reviewed prior to the City Council
meeting
BUDGET/FISCAL IMPACT: Recommendations based on renewal quotes:
• Retain Serve You Rx Pharmacy Benefit Administration for Prescription Drug Card. Serve You
Pharmacy Card services were evaluated against similar services from two leading
providers. Serve You terms are the most favorable, with better coverage of national and
local pharmacies for our plan. Serve You has proposed an increase to the contractual
drug discount, and higher manufacturer rebates refunded to the Plan:
Summary Pricing Serve You Current Proposed
Dispensing Fees $2,753 $2,590
Generic Discount Retail/Mail
Order
74%/78% 76%/81%
Rebates Paid to Plan $(24,120) $(87,290)
• Retain Professional Benefit Administrators (PBA) for administration and billing services PBA
medical administration fees increased slightly, offset by other PBA fees which did not
change, and reduced federal taxes and fees:
Summary Pricing PBA Current Proposed
Total Cost $109,843 $93,736
• Retain preferred provider network administration with CIGNA through PBA
Summary Pricing CIGNA Current Proposed
Total Annual Costs $46,469 $48,262
• Retain Voya for stop loss coverage and retain Optum Health for Transplant coverage. Staff
requested bids for stop loss coverage, and received qualified bids from three major
carriers. Voya was the lowest cost carrier providing full coverage for ongoing conditions
without exclusions:
Summary Pricing Voya Current Proposed
Specific Premium $656,323 $689,737
Aggregate Premium $12,498 $12,820
Transplant Premium (Optum) $29,127 $28,262
Total $697,948 $731,240
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Monday, November 5, 2018 City Council Agenda
COUNCIL ACTION: Authorize the City Manager to execute contracts retaining Professional
Benefit Administrators (PBA) for administration and billing services, retain preferred provider
network administration with CIGNA through PBA, retain Voya for stop loss coverage, renew
with Optum Health for transplant coverage, a component of stop loss coverage, and retain
CIGNA for life insurance, and Approve changes to the City contract with Serve You
4. Consideration of an Ordinance Amending Lake Forest City Code Relating to the
Promotion of Police Sergeants
STAFF CONTACT: Karl Walldorf, Chief of Police (847-810-3803)
PURPOSE AND ACTION REQUESTED: On July 17, 2018, the Board of Fire and Police
Commissioners approved several revisions to its rules and regulations, one of which would
allow the police department to conduct examinations for the position of Sergeant more
frequently than the Statute states. This change requires an amendment to the local
ordinance governing the Board in Chapter 32 of the City Code. The proposed amendment is
found on page 227 of this packet.
BACKGROUND/DISCUSSION: Throughout 2018 the Board of Police and Fire Commissioners has
met on several occasions to revise and update its rules and regulations. In addition to
alterations made to conform to recent legal changes, the police department requested to
be allowed to test for the position of Sergeant every two years instead of every three. The
Board approved this change, which also requires an amendment to the accompanying local
ordinance under the City’s home rule authority.
In the past, the police department has tested every three years for the position of sergeant.
Once this eligibility list is finalized, the Chief of Police may select any of the top three
candidates to promote to a vacant Sergeant position. In the past, some lists have had as few
as three candidates. At times, no openings appeared during the duration of the list and on
some lists, all of the available candidates were promoted.
The department’s current list expires in July 2020. It is expected that nearly all of the
department’s current ten supervisors will retire within a few years of the establishment of the
following list, leaving the possibility that more candidates may be needed than are available
on one or both of the following promotional lists. Testing more frequently will allow for new lists
at more frequent intervals. It will also allow more officers to compete for these positions since
an officer must have completed probation to sit for the exam.
Additionally, testing every two years, beginning in 2020, would allow the City to undertake its
new officer hiring process and its promotional process, both of which are labor-intensive
events, in alternating years.
Importantly, while it requires the use of home rule authority to make this change, it is not
dramatically different from statutory language that already allows municipalities to create a
Fire Lieutenant list for either 2 or 3 years in duration. This essentially creates the same authority
in both areas covered by the Board of Fire and Police Commissioners.
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Monday, November 5, 2018 City Council Agenda
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
Board of Fire and Police
Commissioners 7/17/18 Approval and recommendation that
the Council approve the change.
PCA Committee 11/5/18 Being reviewed prior to the City Council
meeting
BUDGET/FISCAL IMPACT: NA
COUNCIL ACTION: Consideration of an Ordinance Amending Lake Forest City Code Relating
to the Promotion of Police Sergeants (first reading and if appropriate final approval).
5. Award of contract with Advanced Tree Care, for an amount not to exceed $38,000,
as part of the MPI Tree Pruning Services Joint Bid for FY2019.
STAFF CONTACT: Corey Wierema, City Forester/Forestry Supervisor
847-810-3564
PURPOSE AND ACTION REQUESTED: Staff is requesting City Council approval for the City of
Lake Forest to join the Municipal Partnership Initiative (MPI) Tree Pruning contract, and enter
into a contract with Advance Tree Care Inc.
BACKGROUND/DISCUSSION: Tree pruning is one the most important components in
maintaining a healthy urban forest. Pruning removes dead and/or competing branches to
encourage healthy new growth and maturation. The process maximizes a tree’s value and
maintains numerous environmental and community benefits.
City staff has previously briefed the City Council on MPI, a program that takes advantage of
economies of scale for securing low bid prices among neighboring municipalities which bid
similar projects each year.
The City plans to contractually prune approximately 1,500 trees under this contract for FY2019.
This work will extend the functional lifespan of the City’s trees and delay long-term expenses
associated with the removal and replacement of unhealthy trees.
BUDGET/FISCAL IMPACT: The MPI Tree Pruning contract has been in place since 2015 and is
renewable for three years with the option to renew for two additional one-year periods. If
awarded, work on this project is expected to be completed in one month. City Forestry staff
will provide daily oversight and quality control.
Has competitive pricing been obtained for proposed goods/services? No
If no, indicate the specific waiver requested:
Administrative Directive 3-5, Section 9.0F – Government Joint Purchases
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Monday, November 5, 2018 City Council Agenda
FY2019 Funding Source Amount
Budgeted
Amount
Requested
Budgeted?
Y/N
Fund 220 Forestry Operations $38,000 $38,000 Y
COUNCIL ACTION Award of contract with Advanced Tree Care, for an amount not to
exceed $38,000, as part of the MPI Tree Pruning Services Joint Bid for FY2019
6. Approval of Contract with NuToys Leisure Products, for an amount not to exceed
$50,000, for the Waveland Park Playground Expansion and Surfacing Project
STAFF CONTACT: Chuck Myers, Superintendent of Parks & Forestry (810-3565)
PURPOSE AND ACTION REQUESTED: Staff and Parks & Recreation Board requests approval to
award a contract to NuToys Leisure Products to purchase additional swing bay equipment
and Poured-in-Place surfacing material for the Waveland Park playground, as part of the
approved FY2019 Capital Improvement Program.
BACKGROUND/DISCUSSION: New playground equipment and surfacing was installed at
Waveland Park in the summer of 2011. The playground has been heavily used and is a very
popular amenity in the park. The playground was originally built with two swing bays (with a
total of four swing seats) that are inadequate for the amount of use on the playground. At
the time of original construction, only a portion of the playground was surfaced with Poured-
in-Place, due to budgetary restraints. This project will expand the playground in the swing
area to accommodate a new swing bay and includes the installation of Poured-in-Place
surfacing in the entire swing area. We have installed Poured-in-Place surfacing in many of our
new playground installations and have found that the new surface provides maintenance
cost savings annually and provides a safer and ADA compliant surface.
In order to provide a consistent appearance of playgrounds in our parks, and because
residents have communicated strong support for our recent playground designs and
surfacing material at other parks, City staff again worked with NuToys Leisure Products to
design the addition to the Waveland Park playground. NuToys is an approved vendor
through HGACBuy, a national procurement service, which competitively bids playground
equipment to offer time and cost savings for governmental entities and is compliant with the
City of Lake Forest purchasing policies and State of Illinois procurement statutes. In addition,
costs for construction will be reduced by having the playground equipment installed by our
trained City staff.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
Parks and Recreation Board 10/16/18 Recommended Approval
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Monday, November 5, 2018 City Council Agenda
BUDGET/FISCAL IMPACT: The total cost for this project; including equipment, site work and
Poured-in-Place rubber surfacing is $48,167. Staff is also seeking $1,833 for contingency for the
project. Funding for the project is budgeted in the FY’19 CIP (Parks & Public Land Fund).
Has competitive pricing been obtained for proposed goods/services? No
If no, indicate the specific waiver requested:
Administrative Directive 3-5, Section 9.0F – Government Joint Purchases
Below is an estimated summary of Project budget:
FY2019 Funding Source Amount
Budgeted
Amount
Requested
Budgeted?
Y/N
Parks & Public Land Fund $50,000 $50,000 Y
COUNCIL ACTION: Approval of Contract with NuToys Leisure Products, for an amount not to
exceed $50,000, for the Waveland Park Playground Expansion and Surfacing Project
7. Consideration of an Ordinance Amending Section 134.05, titled “Criminal Trespass
to Land” of the City Code, as recommended by Staff, (First Reading and if desired
Grant Final Approval)
STAFF CONTACT: Deputy Chief R.D. Copeland (847-309-8775)
PURPOSE AND ACTION REQUESTED: Staff requests approval of an amendment to Section
134.05, titled “Criminal Trespass to Land” of the City Code with recommended changes as
shown in the proposed Ordinance beginning on page 229 of your packet.
BACKGROUND/DISCUSSION: This year, the Police Department staff reviewed the language of
the current Trespass to Land ordinance (134.05) and compared it to Illinois State Statute (720
ILCS 5/21-3) titled “Criminal Trespass to Real Property”. The review was prompted by several
recent incidents involving offenders entering buildings and residences without permission as
well as climbing on the roof of one building. The Police Department is requesting an
amendment to the current ordinance after determining the Lake Forest local ordinance is
missing an important section of the state statute that is important to the enforcement of this
ordinance.
BUDGET/FISCAL IMPACT: N/A
COUNCIL ACTION: Consideration of an Ordinance Amending Section 134.05, titled “Criminal
Trespass to Land” of the City Code, as recommended by Staff, (First Reading and if desired
Grant Final Approval)
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Monday, November 5, 2018 City Council Agenda
8. Consideration of an Ordinance Approving a Recommendation from the Historic
Preservation Commission. (First Reading and if Desired by the City Council, Final
Approval)
STAFF CONTACT: Catherine Czerniak,
Director of Community Development (810-3504)
The following recommendation from the Historic Preservation Commission is presented to the City
Council for consideration as part of the Omnibus Agenda.
395 Woodland Road - The Historic Preservation Commission recommended approval of a building
scale variance to allow construction of a new garage to replace an original garage which is not
functional for today’s vehicles. The project also includes a breezeway between the house and new
garage, and related alterations. The Preservation Foundation provided testimony in support of the
petition and a neighboring property owner submitted a letter requesting that consideration be
given to potential drainage impacts and that existing vegetation be preserved to screen the new
garage from the streetscape. The Commission confirmed that the City Engineer will review
drainage and grading plans prior to the issuance of a building permit and that the trees and
vegetation in the front yard will be protected during construction. (Commission vote: 7 - 0,
approved)
The ordinance approving the petition, with key exhibits attached, is included in the Council’s
packet beginning on page 232. The Ordinance with complete exhibits is available for review in the
Community Development Department.
COUNCIL ACTION: If determined to be appropriate by the City Council, waive first reading
and grant final approval of the Ordinance approving the petition in accordance with the
Historic Preservation Commission’s recommendation.
9. Consideration of an Ordinance Approving a Recommendation from the Building
Review Board. (First Reading and if Desired by the City Council, Final Approval)
STAFF CONTACT: Catherine Czerniak,
Director of Community Development (810-3504)
The following recommendation from the Building Review Board is presented to the City Council for
consideration as part of the Omnibus Agenda.
20 N. Western Avenue - The Building Review Board recommended approval of a new residence
and attached garage on the site of a previous demolition in an established neighborhood.
Approval of the landscape plan is also recommended. The Preservation Foundation submitted a
letter in support of the project. (Board vote: 5-0, approved)
The Ordinance approving the petition as recommended by the Building Review Board, with key
exhibits attached, is included in the Council packet beginning on page 243. The Ordinance,
complete with all exhibits, is available for review in the Community Development Department.
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Monday, November 5, 2018 City Council Agenda
COUNCIL ACTION: If determined to be appropriate by the City Council, waive first reading
and grant final approval of the Ordinance in accordance with the Building Review Board’s
recommendation.
10. Consideration of a Resolution to Extend the Encouragement and Facilitation of the
Replacement of Lead Water Services. (Approve by Motion)
STAFF CONTACT: Jim Lockefeer, Public Works Management Analyst (810-3542)
PURPOSE AND ACTION REQUESTED: The Council is asked to consider a Resolution to extend
the encouragement and facilitation of the replacement of lead water services. This is an
effort to continue to increase awareness of lead water service lines and to continue to offer
encouragement and support to the owners of properties which have lead services to remove
and replace those services.
BACKGROUND AND DISCUSSION: In 2016, staff in the Public Works Department reviewed City
files and identified about 300 properties that, based on available information, may have lead
water services. Letters were sent to alert owners of those properties that lead service may be
present and to offer no cost City inspections to verify whether or not lead services exist. A
total of 190 inspections have been conducted and in some cases, City inspectors found that
lead services no longer exist. In other cases, where lead services were found, some owners
expressed interest in replacing the lead services.
On September 19, 2016, the Public Works Committee directed staff to present a Resolution for
Council consideration in an effort to encourage and facilitate the full replacement of lead
water services, from the point of connection at the water main, to the connection at the
water meter or foundation. The Resolution directs that, for a period of two years, standard
permit fees for the replacement of lead service lines will be waived. The Resolution was
approved by City Council at the October 3, 2016 City Council Meeting.
On October 30, 2018, the Public Works Committee reviewed the existing resolution. Since the
Resolution was approved by City Council, 12 lead service line replacements have occurred.
In an effort to continue to encourage the replacements of lead service lines, the Public Works
Committee it recommending that the Resolution is approved to extend the waiving of the
standard permit fees for the replacement of lead service lines for an additional two years. A
copy of the proposed 2018 Resolution is included in the Council packet beginning on page
253. The Resolution was drafted utilizing the 2016 Resolution as the base template.
Importantly, the City’s Water Plant and the water quality are regularly monitored and
consistently meet all IEPA standards. In addition, the City has a corrosion control program
through which lead pipes are coated to reduce the likelihood of exposure to lead.
Nevertheless, the City is working to raise awareness of lead water service lines out of an
abundance of caution.
BUDGET/FISCAL IMPACT: No approval for expenditure of City funds is requested. The
proposed two year waiver of permit fees will result in some lost revenues for the City however,
without this program, replacement of lead services may not occur. Depending on the
specific conditions for each property, the waiver of fees for replacement of a lead water
service line ranges from $600 to $1,400.
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Monday, November 5, 2018 City Council Agenda
COUNCIL ACTION: Approve a motion in support of a Resolution to continue to encourage
and facilitate the replacement of lead water service lines.
COUNCIL ACTION: Approval of the ten (10) Omnibus items as presented
6. ORDINANCES
7. NEW BUSINESS
1. Approval of the Second Amendment to the Kemper Sports Management
Agreement.
PRESENTED BY: Sally Swarthout, Director- Parks, Recreation, Forestry (847-810-3942)
PURPOSE AND ACTION REQUESTED: Staff requests the approval of the Second Amendment to
the Kemper Sports Management Agreement.
BACKGROUND/DISCUSSION: The Kemper Sports Management Agreement, initially signed in
January, 2015, provides for the management of Deerpath Golf Course operations and
maintenance. The contract called for a management period of five years with the
opportunity to renew for an additional five years after the third anniversary of the
commencement date, January 1, 2015. Staff is seeking to extend the contract for the
additional five years with an ending date of December 31, 2024.
After the success that Kemper Sports Management has brought to Deerpath Golf Course and
beach consessions, continuing the partnership is in the best interest of the City at this time.
Upon review of the management agreement, Kemper and City Staff have agreed to the
following changes reflected in the Second Amendment document that begins on page 256
of the packet.
The second amendment updates section 2.2 “Term” to reflect the new termination date and
provides the opportunity for either Kemper Sports Management or The City of Lake Forest to
terminate with 90 days’ notice after the seventh anniversary(January 1, 2022) of the
commencement date..
Additional changes include:
• Section 3.4.1 “Operating Budget” to better reflect the City’s budget calendar
deadlines
• Section 3.6 “Food and Beverage Concessions” to include the opening and closing
dates of the Beach Concessions as determined by the Director of Parks, Recreation,
and Forestry.
• Accounting Services Review on an annual basis with amendments made with a
mutual agreement on an as needed basis.
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Monday, November 5, 2018 City Council Agenda
• Full Force and Effect. Except as otherwise specifically modified, all other provisions of
the Kemper Sports Management Agreement shall remain in full force and effect.
BUDGET/FISCAL IMPACT: N/A
COUNCIL ACTION: Approval of the Second Amendment to the Kemper Sports Management
Agreement
8. ADDITIONAL ITEMS FOR DISCUSSION/ COMMENTS BY COUNCIL MEMBERS
1. Welcome Home Update
- Alderman Prue Beidler
9. ADJOURNMENT
A copy of the Decision Making Parameters can be found beginning on page 14 of this
packet.
Office of the City Manager October 31, 2018
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.
13
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THE CITY OF LAKE FOREST
DECISION-MAKING PARAMETERS FOR CITY COUNCIL,
AND APPOINTED BOARDS & COMMISSIONS
Adopted June 18, 2018
The City of Lake Forest Mission Statement:
"Be the best-managed, fiscally-responsible and appealing community and promote a community
spirit of trust, respect and citizen involvement. "
The Lake Forest City Council, with the advice and recommendations of its appointed advisory
Boards and Commissions, Lake Forest Citizens, and City Staff, is responsible for policy
formulation and approval. Implementation of adopted strategy, policy, budgets, and other
directives of Council is the responsibility of City Staff, led by the City Manager and Senior
Staff. The Mayor and Aldermen, and appointed members of Boards and Commissions should
address matters in a timely, deliberate, objective and process-driven manner, making decisions
guided by the City of Lake Forest Strategic and Comprehensive Plans, the City's Codes,
policies and procedures, and the following parameters:
. Motions and votes should comprise what is in the best long-term interests of all Lake
Forest citizens, measured in decades, being mindful of proven precedents and new
precedents that may be created.
. All points of view should be listened to and considered in making decisions with the
long-term benefit to Lake Forest's general public welfare being the highest priority.
. Fundmg decisions should support effectiveness and economy in providing services
and programs, while mindful of the number ofcidzens benefittmg from such
expenditures.
. New initiatives should be quantified, qualified, and evaluated for their long-tenn merit
and overall fiscal unpact and other consequences to the community.
. Decision makers should be proactive and timely in addressing sto-ategic planning
initiatives, external forces not under control of the City, and other opportunities and
challenges to the community.
Community trust in, and support of, government is fostered by maintaining the integrity of these
decision-making parameters.
The City of Lake Forest 's Decision-Making Parameters shall be reviewed by the City Council on an
annual basis and shall be included on all agendas of the City Council and Boards and Commissions.
14
Comprehensive Annual
Financial Report
City of Lake Forest, Illinois
For the Year Ended April 30, 2018
15
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
OF THE
CITY OF LAKE FOREST, ILLINOIS
As of and for the Year Ended April 30, 2018
City of Lake Forest Finance Department
Elizabeth Holleb, Finance Director
Diane Hall, Assistant Finance Director
16
CITY OF LAKE FOREST
TABLE OF CONTENTS
As of and for the Year Ended April 30, 2018
Page(s)
INTRODUCTORY SECTION
Transmittal Letter i - vi
Certificate of Achievement for Excellence in Financial Reporting vii
List of Principal Officials viii
Organizational Chart ix
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT 1 - 2
REQUIRED SUPPLEMENTARY INFORMATION
Management's Discussion and Analysis 3 - 15
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statement of Net Position 16
Statement of Activities 17 - 18
Fund Financial Statements
Balance Sheet - Governmental Funds 19
Reconciliation of the Balance Sheet of Governmental Funds to the Statement
of Net Position 20
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds 21
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 22
Statement of Net Position - Proprietary Funds 23 - 24
Statement of Revenues, Expenses and Changes in Net Position - Proprietary
Funds 25
Statement of Cash Flows - Proprietary Funds 26 - 27
Statement of Fiduciary Net Position - Fiduciary Funds 28
Statement of Changes in Fiduciary Net Position - Fiduciary Funds 29
Index to Notes to Financial Statements 30
Notes to Financial Statements 31 - 87
17
CITY OF LAKE FOREST
TABLE OF CONTENTS (cont.)
As of and for the Year Ended April 30, 2018
REQUIRED SUPPLEMENTARY INFORMATION
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget
and Actual - General Fund 88
Special Revenue Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget
and Actual - Parks and Recreation Fund 89
Historical Pension Information
Illinois Municipal Retirement Fund - Schedule of Changes in the City's Net
Pension Liability and Related Ratios 90 - 91
Illinois Municipal Retirement Fund - Schedule of Employer Contributions 92 - 93
Police Pension Fund - Schedule of Changes in the City's Net Pension Liability
and Related Ratios 94
Police Pension Fund - Schedule of Employer Contributions 95 - 96
Police Pension Fund - Schedule of Investment Returns 97
Firefighters' Pension Fund - Schedule of Changes in the City's Net Pension
Liability and Related Ratios 98
Firefighters' Pension Fund - Schedule of Employer Contributions 99 - 100
Firefighters' Pension Fund - Schedule of Investment Returns 101
Other Postemployment Benefits Plan - Schedule of Employer Contributions and
Schedule of Funding Progress 102
Notes to Required Supplementary Information 103
SUPPLEMENTARY INFORMATION
Governmental Funds
Combining Balance Sheet - Nonmajor Governmental Funds 104 - 105
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
- Nonmajor Governmental Funds 106 - 107
Schedules of Revenues, Expenditures and Changes in Fund Balances (Deficit) -
Budget and Actual
Police Restricted Fund - Nonmajor Special Revenue Fund 108
Foreign Fire Insurance Tax Fund - Nonmajor Special Revenue Fund 109
Emergency Telephone Fund - Nonmajor Special Revenue Fund 110
Parks and Public Land Fund - Nonmajor Special Revenue Fund 111
Motor Fuel Tax Fund - Nonmajor Special Revenue Fund 112
General Cemetery Fund - Nonmajor Special Revenue Fund 113
18
CITY OF LAKE FOREST
TABLE OF CONTENTS (cont.)
As of and for the Year Ended April 30, 2018
SUPPLEMENTARY INFORMATION (cont.)
Senior Resources Commission Fund - Nonmajor Special Revenue Fund 114
Housing Trust Fund - Nonmajor Special Revenue Fund 115
Debt Service Fund - Nonmajor Debt Service Fund 116
Laurel/Western Redevelopment TIF Fund - Nonmajor Capital Projects Fund 117
Capital Improvements Fund - Major Capital Projects Fund 118
Schedules of Revenues, Expenses, and Nonoperating Revenues (Expenses) -
Budget and Actual (Budgetary Basis)
Waterworks and Sewerage Fund - Major Enterprise Fund 119
Deerpath Golf Course Fund - Nonmajor Enterprise Fund 120
Internal Service Funds
Combining Statement of Net Position - Internal Service Funds 121
Combining Statement of Revenues, Expenses and Changes in Net Position -
Internal Service Funds 122
Combining Statement of Cash Flows - Internal Service Funds 123
Schedules of Revenues, Expenses, and Nonoperating Revenues (Expenses) -
Budget and Actual (Budgetary Basis)
Fleet Fund - Internal Service Fund 124
Self Insurance Fund - Internal Service Fund 125
Liability Insurance Fund - Internal Service Fund 126
Combining Statement of Fiduciary Net Position - Pension Trust Funds 127
Combining Statement of Changes in Fiduciary Net Position - Pension Trust Funds 128
Statement of Changes in Fiduciary Net Position - Budget and Actual
Police Pension Fund - Pension Trust Fund 129
Firefighters' Pension Fund - Pension Trust Fund 130
Statement of Changes in Assets and Liabilities - Agency Fund - Special
Assessment Fund 131
Statement of Net Position and General Fund Balance Sheet - Discretely Presented
Component Unit - Lake Forest Library 132
Statement of Activities and General Fund Statement of Revenues, Expenditures,
and Changes in Fund Balance - Discretely Presented Component Unit - Lake
Forest Library 133
Summary of Debt Service Requirements to Maturity 134
19
CITY OF LAKE FOREST
TABLE OF CONTENTS (cont.)
As of and for the Year Ended April 30, 2018
SUPPLEMENTARY INFORMATION (cont.)
Debt Service Requirements to Maturity - General Obligation Bonds 135 - 139
Special Service Area 25 Special Tax Bonds - 2003 Series 140
Special Service Area 26 Special Tax Bonds - 2003 Series 141
Special Service Area 29 Special Tax Bonds - 2004 Series 142
General Obligation Bonds - 2009 Series 143
General Obligation Bonds - 2010 Series B 144
General Obligation Bonds - 2010 Series C 145
General Obligation Bonds - 2011 Series A 146
General Obligation Bonds - 2011 Series B 147
General Obligation Bonds - 2013 Series 148
General Obligation Bonds - 2015 Series 149
General Obligation Bonds - 2017 Series 150
Combining Balance Sheet - Debt Service Fund 151 - 152
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Debt Service Fund 153 - 154
STATISTICAL SECTION
Net Position by Component - Last Ten Fiscal Years 155 - 156
Changes in Net Position - Last Ten Fiscal Years 157 - 160
Fund Balances of Governmental Funds - Last Ten Fiscal Years 161 - 162
Changes in Fund Balances for Governmental Funds - Last Ten Fiscal Years 163 - 164
Assessed Value and Actual Value of Taxable Property - Last Ten Levy Years 165
Property Tax Rates - Direct and Overlapping Governments - Last Ten Levy Years 166
Principal Property Taxpayers - Current Year and Nine Years Ago 167
Property Tax Levies and Collections - Last Ten Levy Years 168
Tax Extensions for City Funds - Last Ten Levy Years 169
Sales Tax Base and Number of Principal Payers - Taxable Sales by Category - .5%
Sales Tax - Last Ten Calendar Years 170
Sales Tax Base and Number of Principal Payers - Taxable Sales by Category - 1%
Sales Tax - Last Ten Calendar Years 171
Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years 172
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 173
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 174
20
CITY OF LAKE FOREST
TABLE OF CONTENTS (cont.)
As of and for the Year Ended April 30, 2018
STATISTICAL SECTION (cont.)
Direct and Overlapping Governmental Activities Debt 175
Legal Debt Margin Information - Last Ten Fiscal Years 176
Pledged Revenue Coverage - Last Ten Fiscal Years 177
Demographic and Economic Information - Last Ten Fiscal Years 178
Principal Employers - Current Year and Nine Years Ago 179
Full-Time Equivalent Employees - Last Ten Fiscal Years 180
Operating Indicators - Last Ten Fiscal Years 181 - 182
Capital Asset Statistics - Last Ten Fiscal Years 183
21
i
October 18, 2018
The Honorable Mayor Lansing
Members of the City Council
Members of the Audit Committee
Residents of the City of Lake Forest, Illinois
The Comprehensive Annual Financial Report of the City of Lake Forest (City) for the year ended April 30,
2018, is hereby submitted as mandated by both local ordinances and state statutes. These ordinances
and statutes require that the City issue annually a report on its financial position and activity presented in
conformance with accounting principles generally accepted in the United States of America (GAAP) and
audited in accordance with generally accepted auditing standards by an independent firm of certified public
accountants.
This report consists of management’s representations concerning the finances of the City of Lake Forest.
Consequently, management assumes full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these representations,
management of the City has established a comprehensive internal control framework that is designed both
to protect the government’s assets from loss, theft or misuse and to compile sufficient reliable information
for the preparation of the City of Lake Forest’s financial statements in conformity with GAAP. Because the
cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal
controls has been designed to provide reasonable rather than absolute assurance that the financial
statements will be free from material misstatement. As management, we assert that, to the best of our
knowledge and belief, this financial report is complete and reliable in all material respects.
The City of Lake Forest utilizes an independent Audit Committee for reviewing the audit process and to
report and make recommendations to the City Council. The Audit Committee members are Lake Forest
residents having expertise in the area of financial administration and auditing.
The City’s financial statements have been audited by Baker Tilly Virchow Krause, LLP a firm of licensed
certified public accountants. The goal of the independent audit is to provide reasonable assurance that the
financial statements of the City of Lake Forest for the fiscal year ended April 30, 2018, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the overall financial statement presentation.
The independent auditor concluded, based upon their audit, that there was a reasonable basis for an
unmodified opinion that the City’s financial statements for the fiscal year ended April 30, 2018, are fairly
presented in conformity with GAAP. The independent auditors’ report is presented as the first component
of the financial section of this report.
GAAP require that management provide a narrative introduction, overview, and analysis to accompany the
basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s
MD&A is located immediately following the report of the independent auditors.
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ii
Profile of The City of Lake Forest
The City of Lake Forest was incorporated as a city under a charter granted by the Illinois State Legislature
in 1861 and amended in 1869. Lake Forest is a residential community of 19,375 people and has a land
area of 17.18 square miles. It is situated on Lake Michigan, thirty miles north of downtown Chicago in Lake
County. In its American Community Survey, 2012-2016 estimates, the U.S. Census Bureau reported the
City had a median household income and median home value significantly higher than comparable figures
for Lake County and the State of Illinois:
The City adopted the Council-Manager form of government in 1956. Policy making and legislative authority
are vested in the City Council, which consists of a Mayor and an eight-member Council. The City Council is
responsible, among other things, for passing ordinances, adopting the budget, appointing committees and
hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and
ordinances of the City Council, for overseeing the day-to-day operations of the City, and for hiring the heads of
the City's departments. The Council members are elected to two-year staggered terms with three Council
members elected every two years. Aldermen serve a maximum of three terms. The Mayor is elected to a two-
year term and serves a maximum of two terms.
The City provides a full range of services, including police protection, fire protection, paramedic service, refuse
disposal, commuter parking, compost center, recreation center, senior center, community parks, golf course,
street maintenance, forestry, cemetery and a water production facility.
The financial reporting entity of The City of Lake Forest includes all City funds as well as its component unit,
the Lake Forest Library. Component units are legally separate entities for which the primary government is
financially accountable.
Each year the City of Lake Forest prepares an annual budget document. This plan contains the following
sections: the budget message and fiscal policy; summary tables of revenues, expenditures and fund
balance for the fiscal year; operating budgets for each department; pay plan and personnel data; and debt
and statistical information. The budget message highlights the significant expenditure events that will occur
and the objectives to accomplish these events. It justifies the planned capital expenditures and also lists
the goals that are to be achieved during the budget year.
While the annual municipal budget represents the City's financial plan for expenditures over the course of
the fiscal year, the annual Appropriation Ordinance is the formal legal mechanism by which the City Council
authorizes the actual expenditure of funds budgeted in the annual budget. It appropriates specific sums of
money by object and purpose of expenditure.
162,117
831,800
79,886
246,700
59,196
174,800
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Median Household Income Median Home Value
Lake Forest Lake County Illinois
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In addition, the Appropriation Ordinance provides for a 10% contingency above those expenditures actually
budgeted. Each separate fund includes an item labeled contingency, with an appropriated amount
equivalent to 10% of the total funds budgeted. Even though there is a 10% contingency line item, the City
Council and City staff follow the adopted budget as its spending guideline and not the Appropriation
Ordinance. This practice has been followed for more than thirty years and has worked very efficiently as a
mechanism to address unanticipated items that may arise throughout the fiscal year.
Budget-to-actual comparisons are provided for each individual governmental fund for which an appropriated
annual budget has been adopted. For the General Fund and Parks and Recreation Fund, considered major
funds, this comparison is presented beginning on page 88 as required supplementary information. For the
Capital Improvements Fund (major fund), Debt Service Fund (non-major fund) and non-major special revenue
funds with appropriated annual budgets, this comparison is presented in the Other Supplementary Information
section of this report, which starts on page 108.
Factors Affecting Financial Condition
Local Economy. The City of Lake Forest is not immune to challenges brought on by national and state
economic conditions, but has been proactive in identifying mitigation strategies.
Unemployment levels in Lake Forest are well below the levels for Lake County and the State of Illinois.
For calendar year 2017, the City’s annual average unemployment rate was estimated to be 3.9%,
compared to 4.4% for Lake County and 5.0% for the State of Illinois.
The consumer confidence index is closely monitored by economists because consumer spending
accounts for 70% of the United States’ economic activity. In July 2018, the index was 127.4, up from
127.1 in June, and comparing favorably to the August 2017 index of 120.4. The index remains above
90, the minimum level associated with a healthy economy. An index above 100 signals growth.
As revenues declined in recent years due to national economic conditions, the City has proactively reduced
operating expenses to ensure a balanced budget and compliance with the City’s fiscal policies. Since
personnel costs represent approximately 70% of the General Fund operating budget, it has been necessary
to achieve cost savings through reduced personnel. In fiscal years (FY) 2004-2019, the City has reduced
budgeted full time employees by 48 positions (19%), returning the City’s total employee count below
FY1992 levels.
In February 2011, the City Council approved an organizational restructuring and Early Retirement Incentive
(ERI) program which is offered and regulated by the Illinois Municipal Retirement Fund (IMRF). Twenty-six
(26) employees participated in the ERI program, which is projected to generate net savings of $4.5 million
over the initial ten year period. In December 2012, the City Council approved the use of excess fund
balance reserves to pay off the ERI liability in its entirety, rather than amortizing over ten years as initially
anticipated. This early payoff allowed the City to avoid $1.8 million in interest costs over the amortization
period.
In September 2014, the City transitioned to a consolidated dispatch operation with the Villages of Glenview
and Lake Bluff, as well as the City of Highland Park. The consolidation of dispatch operations resulted in
the reduction of ten (10) full-time positions and is saving the City more than $350,000 per year while
improving the infrastructure providing this vital service to residents.
Approximately half of the City’s General Fund revenues come from property taxes, which continue to be a
stable revenue source. The other major funding sources of sales tax, income tax, utility taxes and building
permit revenues met FY2018 budget estimates in aggregate. Effective May 1, 2014, the City implemented
a new sanitation fee that generates $620,000 per year. This revenue is currently deposited to the Capital
Improvements Fund. Effective May 1, 2017, the City implemented a new Public Safety Pension Fee to
increase public awareness of the challenges in meeting police and fire pension obligations.
The financial condition of the State of Illinois continues to be a significant concern although the City has
taken measures to limit its reliance on the State for direct funding. The City is vigilant in monitoring
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legislation that may be introduced that could have a negative impact on the City’s budget and vigorously
opposes such legislation. The State Budget for its fiscal year ended June 30, 2018, negatively impacted
the City’s fiscal year 2018 due to a reduction in income tax distributions and a newly imposed administration
fee of 2% on home rule sales tax collections. No immediate expenditure reductions were necessary due
to a budgeted operating surplus in the General Fund for FY2018. The City’s FY2019 budget anticipated a
continuation of the State’s FY18 measures. The State has subsequently adopted a FY2019 budget that
reduces the income tax diversion from 10% to 5% and reduces the home rule sales tax administration fee
from 2% to 1.5%, which will have a positive impact on the City’s FY19 budget. The City Council and staff
continue to discuss fiscal scenarios for future years should the State continue to tap local revenues to
balance its budget or in the event the State imposes property tax limitations on local units of government.
In order to assist the business community and enhance sales tax revenues, economic development
initiatives are conducted through the Community Development Department. The City works with the Lake
Forest/Lake Bluff Chamber of Commerce and representatives of the business districts in Lake Forest. The
City is committed to attracting desired businesses and to promote the viability of the business districts.
More information can be found on the main page of the City’s website under Economic Development.
In an effort to proactively address budgetary issues that may arise throughout the year, City staff monitors
revenues and expenses on a monthly basis. Monthly financial “flash” reports are provided to the City
Council Finance Committee.
In addition, the City follows the fiscal policy approved annually by the City Council. The Fiscal Policy is
designed to establish guidelines for the fiscal stability of the City and to provide guidelines for the City’s
chief executive officer, the City Manager. Effective fiscal policy:
Contributes significantly to the City’s ability to insulate itself from fiscal crisis,
Enhances short-term and long-term financial credit ability by helping to achieve the highest credit
and bond ratings possible,
Promotes long-term financial stability by establishing clear and consistent guidelines,
Directs attention to the total financial picture of the City rather than single issue areas,
Promotes the view of linking long-term financial planning with day-to-day operations, and
Provides the Council and the citizens a framework for measuring the fiscal impact of government
services against established fiscal parameters and guidelines.
In Fiscal Year 2016, the City Council adopted revisions to the Fiscal Policy effective for FY2017 and
continuing in FY2018 and FY2019. The revised policy clarified the applicability of the Property Tax
Extension Limitation Law to the City, established a policy for setting aside reserves to meet the City’s Other
Post-Employment Benefits (OPEB) liability, revised the financing parameters for establishment of Special
Service Areas, and committed to minimizing reliance on State and/or Federal revenues to fund core
services.
Long–Term Financial Planning. The City is funding infrastructure expenditures primarily with a real estate
transfer tax that was approved by voter referendum. This real estate transfer tax is imposed on residential
and commercial real estate transactions. The transfer tax of $4.00 per $1,000 of value is levied on the
buyer of the real estate. FY2018 real estate transfer tax revenue totaled $1.6 million. Significant
fluctuations occur in this revenue source due to changes in economic conditions, and more specifically the
housing market. The City will remain conservative in projecting this revenue source and in spending monies
on capital projects.
In FY2017, the City took advantage of one-time proceeds from the sale of City property to call general
obligation bonds issued in 2008. To provide an additional annual funding source for the Capital
Improvement Program, the City Council approved the creation of a Capital Improvements property tax levy
that would mirror the debt service maturities associated with the 2008 bonds. Beginning in FY2018, this
measure provided an additional $820,000 to the Capital Improvements Fund.
A Public Works Committee consisting of three City Council members was created to oversee capital
improvement projects and programs. Annually in October, the Public Works Committee and city staff
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finalize the draft of the Five Year Capital Improvement Program. This draft is discussed at a City Council
Finance Committee budget meeting, typically held in November.
Five-year fund balance forecasts are prepared for major funds of the City each year as part of the budget
development process to assist the City in identifying budget challenges on the horizon and ensure that a
proactive approach is taken to addressing these challenges. In recent years, a ten-year forecast has been
developed for the General Fund.
Pension Benefits. Escalating costs for employee pension benefits will continue to pose financial
challenges to the City. Sworn police and fire personnel receive retirement and disability benefits from the
Police Pension Fund and Firefighters’ Pension Fund, respectively. Both of these plans are defined benefit,
single-employer plans administered by boards of trustees. The defined benefits and employee contribution
levels are governed by Illinois Compiled Statutes and may only be amended by the Illinois General
Assembly. Police participants are required to contribute 9.91% of their base salaries and fire participants
are required to contribute 9.455% of their base salaries. The City is required to contribute the remaining
amounts necessary to finance each plan as determined by an independent actuary. As of April 30, 2018,
the most recent actuarial valuation date, the funded ratio for the Police Pension Plan is 54.2% and for the
Firefighters’ Pension Plan is 70.6%.
All other employees of the City who work over 1,000 hours per year are covered by the Illinois Municipal
Retirement Fund (IMRF), a statewide pension plan. Benefit provisions and funding requirements are
established by State statutes and may only be changed by the Illinois General Assembly. Employees
participating are required to contribute 4.5% of their annual wages and the City is required to contribute the
remaining amounts necessary to fund the coverage of its employees in the plan. As of December 31, 2017,
the funded ratio for IMRF is 98.8%, including the actuarial accrued liability for retirees which is 100% funded.
In early 2010, a bill was signed by the Governor with an effective date of January 1, 2011, approving a "two-
tier" system, where current employees keep their existing pension plans, but new hires will join a less
expensive new system. IMRF was included in the bill but not the Police and Firefighters’ pension plans.
By the end of 2010, the Illinois General Assembly approved police and firefighter pension reform legislation
effective January 1, 2011. The law does not affect the pensions of all employed police officers and
firefighters - only those hired after January 1, 2011. Although cost savings from both bills will not be seen
immediately, it does provide the City long-term financial relief.
Implementation of GASB Statement No. 67, Financial Reporting for Pension Plans, for Fiscal Year 2015
and No. 68, Accounting and Financial Reporting for Pensions, for Fiscal Year 2016 has resulted in
significant changes to the reporting of pension obligations in the City’s financial statements. In anticipation
of these statements taking effect, the City made adjustments to the mortality table and interest rate
assumptions for its police and fire pension fund actuarial valuations. These changes reduced the funded
ratio of the plans, but were intended to put the City in an even stronger position going forward. These
changes are in addition to historically overfunding the annual pension cost compared to minimum
requirements per State Statutes.
The City Council has continued deliberations on the funding of public safety pensions with the support of
staff, the fire and police pension boards, and the City’s independent actuary. Significant changes to
actuarial assumptions were made for the 4/30/17 actuarial valuations, increasing the funding requirement
for FY2019 by a combined $800,000. A public safety pension fee was implemented effective May 1, 2017
as noted previously. A public pension subcommittee established by the Mayor continues to discuss
alternatives for future consideration by the City Council.
Additional information on the City’s pension obligations, as well as other postemployment benefits, may be
found in Note IV of the financial statements, as well as in the Required Supplementary Information.
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Major Initiatives
The City is committed to maintaining the quality of life and preserving the character and heritage of Lake
Forest. The City must continue to adhere to its prudent financial management practices and remain focused
on sustaining long-term financial stability. For FY2018, the most significant initiatives were as follows:
In January 2015, the City Council approved ordinances adopting a Tax Increment Financing (TIF)
District on a 10-acre site at the north end of the Commercial Business District. In FY2016, the City
completed required demolition of existing structures and remediation of the site. In April 2016, the
City Council approved a First Amendment to the Purchase/Sale Agreement, redevelopment
agreement, final plat of subdivision and Final Development Planned Development Ordinance. The
plan includes 165 total units – 12 single family homes, 42 condominium units and 111 apartments.
Significant construction progress was made in FY2018, with 40% of the apartments leased, 8
condos sold and 3 single family homes sold as of July 2018.
Construction of a new $190 million replacement hospital on the campus of the existing
Northwestern Lake Forest Hospital was completed with the new hospital opening in March 2018.
In February 2016, the City Council authorized final design of water plant improvements that will
increase the plant capacity to 14 MGD (million gallons per day) and utilize GE membrane filters. In
FY2018, construction commenced with a significant portion of the project funded from bonds issued
in May 2017.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence
in Financial Reporting to The City of Lake Forest for its comprehensive annual financial report for the fiscal year
ended April 30, 2017. This was the 39th consecutive year that the City of Lake Forest has achieved this
prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily
readable and efficiently organized comprehensive annual financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is
valid for a period of one year only. We believe that our current comprehensive annual financial report continues
to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to
determine its eligibility for another certificate.
We would like to express our appreciation to all members of the Finance Department who assisted and
contributed to the preparation of this report. We would also like to thank the Mayor, members of the City Council
and the Audit Committee for their interest and support in planning and conducting the financial operations of
the City in a responsible and progressive manner.
Respectfully submitted,
Robert R. Kiely, Jr. Elizabeth A. Holleb
City Manager Finance Director
27
A
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lake Forest
Illinois
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
April 30,2017
7
Executive Director/CEO
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viii
List of Principal Officials
Year Ended April 30, 2018
LEGISLATIVE
City Council
Robert Lansing, Mayor
Prue R. Beidler Melanie Rummel
James E. Morris Timothy Newman
Stanford Tack Jack Reisenberg
Raymond P. Buschmann Michelle Moreno
AUDIT COMMITTEE
Vince Sparrow, Chairman
Andrew Logan
William McFadden
William Smith
Dean Stieber
Robert Lansing, Mayor (ex‐officio)
James E. Morris, 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
29
Voters 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
30
Page 1
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and City Council
City of Lake Forest, Illinois
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of Lake Forest, Illinois, as of and for the year ended April 30, 2018, and the related notes
to the financial statements, which collectively comprise the City of Lake Forest's basic financial statements as
listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors' judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control over financial reporting relevant to the City of Lake
Forest's preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of
the City of Lake Forest's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
31
To the Honorable Mayor and City Council
City of Lake Forest, Illinois
Page 2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, the discretely presented
component unit, each major fund, and the aggregate remaining fund information of the City of Lake Forest,
Illinois, as of April 30, 2018 and the respective changes in financial position and, where applicable, cash flows
thereof for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required
supplementary information as listed in the table of contents be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any assurance on
the information because the limited procedures do not provide us with sufficient evidence to express an opinion
or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of Lake Forest's basic financial statements. The supplementary information as listed in the
table of contents is presented for purposes of additional analysis and is not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates directly to
the underlying accounting and other records used to prepare the basic financial statements. The information
has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the supplementary information is fairly stated in all material respects,
in relation to the basic financial statements as a whole.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of Lake Forest's basic financial statements. The introductory section and statistical section
are presented for purposes of additional analysis and are not a required part of the basic financial statements.
Such information has not been subjected to the auditing procedures applied in the audit of the basic financial
statements, and accordingly, we do not express an opinion or provide any assurance on it.
Oak Brook, Illinois
October 18, 2018
32
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2018
Page 3
The City of Lake Forest’s (the City) management’s discussion and analysis is designed to (1) assist the reader
in focusing on significant financial issues, (2) provide an overview of the City’s financial activity, (3) identify
changes in the City’s financial position (its ability to address the next and subsequent year’s challenges),
(4) identify any material deviations from the financial plan (the approved budget), and (5) identify individual fund
issues or concerns.
Since the Management’s Discussion and Analysis (MD&A) is designed to focus on the current year’s activities,
resulting changes and currently known facts, please read it in conjunction with the Transmittal Letter (beginning
on page i) and the City’s financial statements (beginning on page 16).
Financial Highlights
The City’s net position increased $3.3 million for the fiscal year ending April 30, 2018 (FY18).
Governmental net position decreased $1.2 million and business-type net position increased $4.5 million.
The governmental activities revenue decreased by $1.4 million (2.6%) due to reduced charges for
services and capital grants/contributions, increased intergovernmental taxes and increased investment
income. The expenses decreased by $8.6 million (14.6%) due primarily to adjustments related to
pensions and a temporary loss on the sale of assets in the prior year. Transfers increased by $3.9 million
related to one time permit fees transferred for capital improvements and a capital contribution from the
Capital Improvements Fund to the Water and Sewer Fund.
The business-type activities revenue increased by $.4 million (4.2%) primarily due to an increase in
charges for services in the Water and Sewer Fund, as well as investment income. The City’s business-
type activity expenses decreased by $.9 million (8.5%) due primarily to pension adjustments and non-
capitalized improvements in FY17. Transfers increased by $3.9 million as discussed above.
The total cost of all City programs decreased from $69.6 million in FY17 to $60.1 million in FY18 – a
decrease of $8.5 million or 14.6% - attributable to pension adjustments, non-capitalized improvements
and a temporary loss of the sale of capital assets in FY17.
USING THE FINANCIAL SECTION OF THE
COMPREHENSIVE ANNUAL REPORT
The financial statement’s focus is on both the City as a whole (government-wide) and on the major individual
funds. Both perspectives (government-wide and major fund) allow the user to address relevant questions,
broaden a basis for comparison (year to year or government to government) and enhance the City’s
accountability.
Government-Wide Financial Statements
The government-wide financial statements (see pages 16-18) are designed to be corporate-like in that all
governmental and business-type activities are consolidated into columns which add to a total for the Primary
Government. The Statement of Net Position is designed to be similar to bottom line results for the City and its
governmental and business-type activities. This statement combines and consolidates governmental fund’s
current financial resources (short-term spendable resources) with capital assets and long term obligations using
the accrual basis of accounting and economic resources measurement focus.
The Statement of Activities (see pages 17-18) is focused on both the gross and net cost of various activities
(including governmental and business-type), which are supported by the government’s general taxes and other
resources. This is intended to summarize and simplify the user’s analysis of the cost of various governmental
services and/or subsidy to various business-type activities.
33
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2018
Page 4
The Governmental Activities reflect the City’s basic services, including highways and streets, sanitation, culture
and recreation, public safety and general government. Property taxes, sales tax, income taxes and local utility
taxes finance the majority of these services. The Business-type Activities reflect private sector type operations
(Waterworks and Sewerage, Golf) where the fee for service is intended to cover all or most of the costs of
operation, including depreciation.
Fund Financial Statements
Traditional users of governmental financial statements will find the Fund Financial Statements presentation
more familiar. The focus is on Major Funds, rather than fund types.
The Governmental Major Funds (see pages 19 and 21) presentation is presented on a sources and uses of
liquid resources basis. This is the manner in which the financial plan (the budget) is typically developed. The
flow and availability of liquid resources is a clear and appropriate focus of any analysis of a government. Funds
are established for various purposes and the Fund Financial Statement allows the demonstration of sources
and uses and/or budgeting compliance associated therewith.
The Fund Financial Statements also allow the government to address its Fiduciary Funds (Police Pension,
Firefighters’ Pension, Cemetery Trust, and Special Assessment Funds). While these Funds represent trust
responsibilities of the government, these assets are restricted in purpose and do not represent discretionary
assets of the government. Therefore, these assets are not presented as part of the Government-Wide Financial
Statements.
While the Business-type Activities total column on the Business-type Fund Financial Statements (see pages 23
- 27) is essentially the same as the Business-type column on the Government-Wide Financial Statement, the
Governmental Major Funds Total column requires a reconciliation because of the different measurement focus
(current financial resources versus total economic resources) which is reflected on the page following each
statement (see pages 20 and 22). The flow of current financial resources will reflect debt proceeds and inter-
fund transfers as other financing sources as well as capital expenditures and debt principal payments as
expenditures. The reconciliation will eliminate these transactions and incorporate the capital assets and long-
term obligations (bonds and others) into the Governmental Activities column (in the Government-wide
statements).
Infrastructure Assets
Historically, a government’s largest group of assets (infrastructure – roads, bridges, storm sewers, etc.) was
not reported nor depreciated in governmental financial statements. Generally accepted accounting principles
now require that these assets be valued and reported within the Governmental Activities column of the
government-wide Statements. Additionally, the government must elect to either (1) depreciate these assets
over their estimated useful life or (2) develop a system of asset management designed to maintain the service
delivery potential to near perpetuity. If the government develops the asset management system (the modified
approach) which periodically (at least every third year) by category measures and demonstrates its
maintenance of locally established levels of service standards, the government may record its cost of
maintenance in lieu of depreciation. The City has chosen to depreciate assets over their useful life. If a road
project is considered maintenance – a recurring cost that does not extend the road’s original useful life or
expand its capacity – the cost of the project will be expensed. An “overlay” of a road will be considered
maintenance whereas a “rebuild” of a road will be capitalized.
34
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2018
Page 5
GOVERNMENT-WIDE STATEMENT
Statement of Net Position
The City’s combined net position increased by $3.3 million for FY18 – from $222.2 million to $225.5 million.
The analysis following will look at net position and net expenses of governmental and business-type activities
separately. The total net position for the governmental activities decreased by $1.2 million – from $177.0 million
to $175.8 million. The business-type activities net position increased by $4.5 million – from $45.2 million to
$49.7 million. Table 1 reflects the condensed Statement of Net Position compared to FY17. Table 2 will focus
on the changes in net position of the governmental and business-type activities.
2017 2018 2017 2018 2017 2018
Current and Other Assets $91.3 $92.7 $9.6 $15.2 $100.9 $107.9
Capital Assets 200.6 199.0 50.9 58.7 251.5 257.7
Total Assets 291.9 291.7 60.5 73.9 352.4 365.6
Deferred Outflows 8.93.21.10.410.03.6
Long- Term Liabilities 88.3 78.3 15.4 21.5 103.7 99.8
Other Liabilities 7.5 7.2 0.9 2.3 8.4 9.5
Total Liabilities 95.8 85.5 16.3 23.8 112.1 109.3
Deferred Inflows 28.0 33.6 0.1 0.8 28.1 34.4
Net Position:
Net Investment in
Capital Assets 170.6 166.6 37.5 40.7 208.1 207.3
Restricted 15.5 20.2 0.0 0.0 15.5 20.2
Unrestricted (9.1) (11.0) 7.7 9.0 (1.4) (2.0)
Total Net Position $177.0 $175.8 $45.2 $49.7 $222.2 $225.5
Table 1
Statement of Net Position
As of April 30, 2017 and 2018
(in millions)
Governmental
Activities
Business-Type
Activities
Total Primary
Government
For more detailed information see the Statement of Net Position (page 16).
Normal Impacts
There are six basic (normal) transactions that will affect the comparability of the Statement of Net Position
summary presentation.
Net Results of Activities will impact (increase/decrease) current assets and unrestricted net position.
Borrowing for Capital will increase current assets and long-term debt.
Spending Borrowed Proceeds on New Capital will reduce current assets and increase capital assets. There is
a second impact, an increase in capital assets and an increase in related net debt which will not change the net
investment in capital assets.
Spending of Non-borrowed Current Assets on New Capital will (a) reduce current assets and increase capital
assets and (b) will reduce unrestricted net position and increase net investment in capital assets.
35
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2018
Page 6
Principal Payment on Debt will (a) reduce current assets and reduce long-term debt; and (b) reduce unrestricted
net position and increase net investment in capital assets.
Reduction of Capital Assets through Depreciation will reduce capital assets and net investment in capital
assets.
Current Year Impacts
The City’s $3.3 million increase in combined net position (which is the City’s bottom line) was the result of the
governmental activities net position decreasing by $1.2 million and the business-type activities net position
increasing by $4.5 million.
The governmental activities total assets decreased by $.2 million (<.10%) while the governmental activities total
liabilities decreased by $10.3 million (10.75%). With the implementation of GASB Statement No. 68,
Accounting and Financial Reporting for Pensions, long-term liabilities now include the net pension liability
previously only disclosed in the notes to the financial statements. The decrease in total assets is primarily due
to depreciation on capital assets. The decrease in total liabilities is due primarily to the reduction in Net Pension
Liability for the Illinois Municipal Retirement Fund (IMRF). See additional information in the Long-Term
Obligations and Employees’ Retirement System sections of the Notes to Financial Statements and the Debt
Outstanding section of the MD&A.
A decrease in deferred outflows of $5.7 million related to pensions, while an increase in deferred inflows of $5.6
million related to pensions and an increase in property taxes levied for future periods.
Net investment in capital assets decreased by $4.0 million (2.3%) due to the expenditure of prior year bond
proceeds and depreciation and the paydown of G.O. Bonds that funded the capital assets. Restricted net
position increased $4.7 million largely due to bond proceeds expended for capital improvements. Unrestricted
net position decreased by $1.9 million primarily due to the net effect of GASB 68 reporting of pension
obligations.
The net position of business-type activities increased by $4.5 million, from $45.2 million to $49.7 million. The
primary change in assets of the business-type activities was an increase in capital assets as well as unspent
bond proceeds at year end.
Long-term liabilities increased by $6.1 million due to a new bond issue for water plant improvements, offset in
part by scheduled maturities of debt obligations. Net investment in capital assets increased by $ 3.2 million
due to bond-funded capital improvements, and unrestricted net position increased by $1.3 million. The majority
of the unrestricted net position can be used by the City to finance water and sanitary sewer operations. The
City has a policy of maintaining 33% of revenue plus one year’s debt service plus $500,000 as a reserve in its
water fund. The annual operating cost for this program is approximately $7.5 million per year and interest
expense on bonds is $.6 million.
Changes in Net Position
The City’s combined change in net position was an increase of $3.3 million in FY18. The City’s total revenues
decreased by $1.0 million, primarily driven by reduced charges for services offset in part by increased interest
income. The City’s cost of all programs decreased by $9.5 million, largely attributable to pension adjustments,
as well as non-capitalized improvements and a temporary loss on the sale of capital assets in the prior year.
The chart on the following page compares the revenue and expenses for the current and previous fiscal year.
36
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2018
Page 7
2017 2018 2017 2018 2017 2018
REVENUE
Program Revenue
Charges for Services $14.9 $12.4 $9.5 $9.6 $24.4 $22.0
Grants and Contributions
Operating 1.1 1.3 1.1 1.3
Capital 1.2 0.4 1.2 0.4
General Revenue
Property Taxes 25.9 26.2 25.9 26.2
Other Taxes 4.7 4.7 4.7 4.7
Intergovernmental - Taxes 6.1 6.8 6.1 6.8
Interest Revenue 1.0 1.7 1.0 1.7
Other 0.0 0.0 0.3 0.0 0.3
Total Revenue 54.9 53.5 9.5 9.9 64.4 63.4
EXPENSES
Governmental Activities
General Government 16.9 10.0 16.9 10.0
Highways and Streets 10.9 9.6 10.9 9.6
Sanitation 2.6 2.5 2.6 2.5
Culture and Recreation 10.0 10.0 10.0 10.0
Public Safety 17.0 17.0 17.0 17.0
Interest 1.6 1.3 1.6 1.3
Business-Type Activities
Water and Sewer 8.5 8.1 8.5 8.1
Golf 2.1 1.6 2.1 1.6
Total Expenses 59.0 50.4 10.6 9.7 69.6 60.1
Excess before Transfers (4.1) 3.1 (1.1) 0.2 (5.2) 3.3
Transfers In (out) (0.4) (4.3) 0.4 4.3 0.0 0.0
Change in Net Position (4.5) (1.2) (0.7) 4.5 (5.2) 3.3
Net Position - Beginning 181.5 177.0 45.9 45.2 227.4 222.2
Net Position - Ending $177.0 $175.8 $45.2 $49.7 $222.2 $225.5
Table 2
Changes in Net Position
For the Fiscal Year Ended April 30, 2017 and 2018
(in millions)
Governmental
Activities
Business-Type
Activities
Total Primary
Government
37
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2018
Page 8
Property Tax
47%
Sales Tax
5%
Income Tax
4%
Utility Tax
7%
Real Estate
Transfer Tax
3%
Charges for
Services
27%
Grants
2%
Other
3%
Inv Income
2%
FY2017 Governmental Activities Revenue
Property Tax
49%
Sales Tax
5%
Income Tax
4%
Utility Tax
5%
Real Estate
Transfer Tax
3%
Charges for
Services
23%
Grants
3%
Other
5%
Inv Income
3%
FY2018 Governmental Activities Revenue
38
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2018
Page 9
General
Government
29%
Highways and
Streets
18%
Sanitation
4%
Culture and
Recreation
17%
Public Safety
29%Interest on LT Debt
3%
FY2017 Governmental Activities Expenses
General
Government
20%
Highways and
Streets
19%
Sanitation
5%
Culture and
Recreation
20%
Public Safety
34%
Interest on LT Debt
2%
FY2018 Governmental Activities Expenses
39
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2018
Page 10
Normal Impacts
There are eight basic impacts on revenues and expenses as reflected below.
Revenues
Economic Condition can reflect a declining, stable or growing economic environment and has a substantial
impact on state income, sales and utility tax revenue as well as public spending habits for building permits,
elective user fees and volumes of consumption.
Increase/Decrease in City approved rates – while certain tax rates are set by statute, the City Council has
authority to impose and periodically increase/decrease rates (water, sewer, building fees, etc.).
Changing Patterns in Intergovernmental and Grant Revenue (both recurring and non-recurring) – certain
recurring revenues (state shared revenues, etc.) may experience significant changes periodically while
non-recurring (or one-time) grants are less predictable and often distorting in their impact on year to year
comparisons.
Market Impacts on Investment income – investment income on the City’s investment portfolio may fluctuate
based on market conditions.
Expenses
Introduction of New Programs – within the functional expense categories (Public Safety, Highways and
Streets, General Government, etc.), individual programs may be added or deleted to meet changing
community needs.
Increase/Decrease in Authorized Personnel – changes in service demand may cause the City Council to
increase/decrease authorized staffing. Staffing costs (salary and related benefits) represent nearly 70% of
the City’s general fund operating costs.
Salary Increases (annual adjustments and merit) – the ability to attract and retain human and intellectual
resources requires the City to strive to approach a competitive salary range position in the marketplace.
Inflation – while overall inflation appears to be reasonably modest, the City is a major consumer of certain
commodities such as supplies, fuels and parts. Some functions may experience unusual commodity specific
increases.
Current Year Impacts
Governmental Activities
Revenue
For the fiscal year ended April 30, 2018, revenues from governmental activities totaled $53.5 million,
decreasing $1.4 million compared to FY17. The primary changes occurred in Charges for Services (down
$2.5 million), Capital Grants (down $.8 million), Intergovernmental Taxes (up $.7 million) and Interest
Revenue (up $.7 million). The decrease in Charges for Services was largely due to one-time permit fees
collected in FY17. Intergovernmental Taxes increase was due primarily to a $650,000 payment to the
Housing Trust Fund. Investment income increased due to rising interest rates. Property tax revenue
continues to be the City’s single largest revenue source, contributing $26.2 million (49%) of governmental
activities revenue.
Property tax revenues combined with sales tax, the local utility tax, shared state income tax and real estate
transfer tax revenues total $35.1 million and represent 66% of the total governmental activities revenue.
40
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2018
Page 11
The real estate transfer tax became effective July 5, 2006 with a 58% voter approval via referendum. The
tax is imposed upon buyers of any residential or commercial real estate at a rate of $4.00 per $1,000 of
value. The revenue is used strictly to improve the City’s infrastructure.
The City’s 2017 equalized assessed valuation increased 3.7% compared to the prior year and totaled
$2,532,266,902. Although the City became a home rule municipality in November 2004, the City has
historically self-imposed the Illinois Property Tax Extension Limitation Laws (PTELL), otherwise known as
the tax cap, to the extent possible. The increase of approximately 1.6% over FY17 in property taxes was
generated as a result of the City Council adopting a 1.45% increase in the levy and new growth. While the
tax cap applicable to this levy was .70%, the levies for debt service and capital improvements combined
exceeded the tax cap.
Investment income increased by $0.7 million, from $1.0 million to $1.7 million. The City’s strategy for
investing did not change but the City benefited from improved market conditions.
Expenses
For the fiscal year ended April 30, 2018, expenses for governmental activities totaled $50.4 million, a
decrease of $8.6 million (14.6%). The decrease is due in large part to pension adjustments and a temporary
loss on the sale of the property associated with the prior Municipal Services facility in FY17. Increases in
personnel costs, which represent nearly 70% of the General Fund operating costs, continue to outpace
revenue growth. With high demand for skilled employees in both the public and private sectors in this
region, it is important that the City provide competitive compensation levels for our employees. The FY18
expenses included funding for the City’s performance based employee compensation package plus a 2.5%
general salary adjustment.
Business-type Activities
Revenue
Total revenue for the business-type activities increased by $.4 million (4.2%) primarily due to an increase
in charges for services in the Water and Sewer Fund, as well as investment income.
Expenses
The City’s business-type activity expenses decreased by $.9 million (8.5%) due primarily to pension
adjustments and non-capitalized improvements in FY17.
41
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2018
Page 12
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds
At April 30, 2018, the governmental funds (as presented on the balance sheet on page 19) reported a
combined fund balance of $50.1 million which is a $.6 million (1.2%) increase from the beginning of the
year ($49.5 million). This modest increase was largely driven by excess of revenues over expenditures in
the General Fund. Of the total fund balance of $50.1 million, $.2 million is not available for continuing City
services and capital projects, and $20.8 million is restricted in its use. The unassigned fund balance for the
total of all governmental funds is $29.1 million, which is a $.3 million (1.2%) increase over the prior year.
Major Governmental Funds
The General Fund is the City’s primary operating fund and the largest source of day-to-day service delivery.
The total Fund Balance of the General Fund decreased by $.3 million or 1% from FY17 (from $29.6 million
to $29.3 million). The General Fund revenues decreased by $1 million (2.5%) due primarily to one time
permit fees received in the prior year. The General Fund expenditures increased by $.8 million (2.7%) due
to personnel costs and increased principal retirement. The excess of revenues over expenditures (before
transfers) for FY18 of $5.6 million was $1.8 million less than FY17 ($7.4 million). The other financing
sources (uses) for FY18 of $(5.9) million was significantly higher than FY17 $(1.6) million due to one-time
revenues being transferred to other funds for capital improvements.
Property taxes increased $.3 million, while other taxes increased $.2 million. Although the City became a
home rule unit in November 2004, the City has historically self-imposed the Illinois Property Tax Extension
Limitation Law (PTELL), otherwise known as the tax cap. As noted previously, the 2016 levy extension
(FY18 revenue) allowed for a 1.45% increase as well as new equalized assessed valuation growth.
General Fund expenditures increased overall due to personnel cost increases. General government
decreased .5%, highways and streets increased 3.4% (personnel; snow and ice control), sanitation
decreased 1%, and public safety increased 2.8%. In addition, General Fund principal retirement increased
$310,000 compared to FY17.
Original Final
General Fund Budget Budget Actual
Revenues:
Taxes $21.4 $21.4 $21.3
Intergovernmental 6.1 6.1 5.8
Other 7.1 7.1 8.7
Total 34.6 34.6 35.8
Expenditures and Transfers:
Expenditures 36.1 36.4 30.2
Transfers (Net)4.8 4.8 5.9
Total 40.9 41.2 36.1
Change in Fund Balance ($6.3)($6.6) ($0.3)
Table 3
General Fund Budgetary Highlights
(in millions)
Actual General Fund revenues were higher than budgeted revenues by $.8 million during FY18. The
primary variance resulted from building permit revenues exceeding projections. Actual General Fund
expenditures and transfers were lower than the final budget by $5.1 million. It is the City’s policy to add
42
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2018
Page 13
10%, which is $3.3 million, of contingency funding to the budget appropriation. The contingency amount is
only for specific uses as determined by the City Council and was not expended in FY18. Additional
information can be found on the schedule of revenues, expenditures and changes in fund balance – budget
and actual on page 88.
The Parks and Recreation Fund accounts for the parks and recreation programs. Services include forestry
and parks maintenance operations, a fitness center, dance academy, and a variety of other indoor and
outdoor programs. The Fund Balance of the Parks and Recreation Fund decreased by $.8 million, from
$2.8 million to $2.0 million. The Parks and Recreation Fund revenues and expenditures were consistent
with the prior year. Total other financing sources (uses) were $6,498 in FY17, but $(.5) million in FY18,
due to increased transfers to the Golf Course Fund for capital improvements.
The Capital Improvements Fund is reported as a Major Fund for FY18 and is used to account for revenues
associated with City building and infrastructure projects. Fund balance of this fund increased by $1.4 million
in FY18. Compared to FY17, revenue increased by $.5 million due to increases in property and real estate
transfer taxes. Total expenditures increased by $.5 million in the capital outlay category. Transfers in of
$3.1 million for FY18 consisted of one time permit fees and fund balance of the General Fund for one-time
capital improvements.
The Debt Service Fund is reported as a Nonmajor Fund for FY18 and is used to account for revenues used
to retire non-Enterprise Fund obligations. Fund balance for FY18 increased by $83,065, from $1.4 million
to $1.5 million.
CAPITAL ASSETS
2017 2018 2017 2018 2017 2018
Land and Improvements $38.2 $38.2 $0.5 $0.5 $38.7 $38.7
Infrastructure - Land 66.7 66.7 66.7 66.7
Construction in Progress 0.0 0.0 0.0 8.6 0.0 8.6
Infrastructure 54.3 54.9 54.3 54.9
Buildings 19.0 18.3 12.4 11.4 31.4 29.7
Improvements 18.2 16.9 23.3 23.5 41.5 40.4
Machinery and Equipment 4.2 4.0 1.6 1.7 5.8 5.7
Sanitary Sewers 0.0 0.0 13.1 13.0 13.1 13.0
Total $200.6 $199.0 $50.9 $58.7 $251.5 $257.7
Table 4
Capital Assets at Year End - 2017 and 2018
Net of Depreciation
(in millions)
Governmental
Activities
Business-Type
Activities
Total Primary
Government
At the end of FY18, the City had a combined total of $257.7 million invested in a broad range of capital
assets. This amount represents a net increase (including additions and deductions) of $6.2 million. The
net increase is attributable to a $1.6 million decrease in governmental activities and a $7.8 million increase
in the business-type activities.
The decrease in the governmental activities was due to depreciation exceeding additions by $1.6 million.
The increase in business-type activities was due primarily to $8.6 million of construction in progress
associated with water plant improvements.
43
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2018
Page 14
The following reconciliation summarizes the changes in Capital Assets which are presented in detail on
pages 56-58 of the Notes.
Governmental Business-Type
Activities Activities Total
Beginning Balance $200.6 $50.9 $251.5
Additions
Depreciable 4.2 2.0 6.2
Construction in Progress 8.7 8.7
Retirements
Depreciable (1.2)(0.1)(1.3)
Depreciation (5.8)(2.9)(8.7)
Retirements 1.2 0.1 1.3
Ending Balance $199.0 $58.7 $257.7
Table 5
Change in Capital Assets
(in millions)
Debt Outstanding
The City had $54.3 million of general obligation bonds outstanding at April 30, 2018. Of this amount $24.2
million were payable from property taxes and the remainder were self-supporting. The City abates the
property tax levies for these debt issues annually.
The City’s per capita debt ratio for all direct and overlapping debt with other governmental units was $5,735
and $4,181 if self-supporting debt is excluded.
The City operated as a home rule community for FY18. The City was granted home rule status via a
referendum held on November 2, 2004. Under home rule authority, the City does not have a legal debt
limit. For more detailed information on long-term debt activity, see pages 61-63.
The City issued $9.3 million in general obligation bonds in FY18. The proceeds are being used to fund
water plant improvements, and the debt service on this issue will be paid from water utility revenues.
As of April 30, 2018, the City’s net pension liability is $42.9 million, a decrease of $9.5 million compared to
the $52.4 million balance as of April 30, 2018. Additional information regarding the net pension liability can
be found in Note IV.
44
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2018
Page 15
Economic Factors
Unemployment levels in Lake Forest are well below the levels for Lake County and the State of Illinois. For
calendar year 2017, the City’s annual average unemployment rate was estimated to be 3.9%, compared to
4.4% for Lake County and 5.0% for the State of Illinois.
The City maintains a Aaa bond rating from Moody’s Investors Service.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, customers, investors and creditors with a general
overview of the City’s finances and to demonstrate the City’s accountability for the money it receives.
Questions concerning this report or requests for additional financial information should be directed to
Elizabeth Holleb, Finance Director, City of Lake Forest, 800 N. Field Drive, Lake Forest, IL 60045 or by
email at HollebE@cityoflakeforest.com.
45
BASIC FINANCIAL STATEMENTS
46
CITY OF LAKE FOREST
STATEMENT OF NET POSITION
As of April 30, 2018
Primary Government Component Unit
Governmental
Activities
Business-type
Activities Totals
Lake Forest
Library
ASSETS
Cash and cash equivalents $ 52,586,986 $ 13,228,149 $ 65,815,135 $ 3,701,986
Investments 6,065,340 - 6,065,340 -
Receivables (net)
Property taxes 27,134,875 - 27,134,875 4,010,981
Other taxes 383,312 - 383,312 7,332
Accounts 1,826,593 1,372,866 3,199,459 -
Loans 311,283 -311,283 -
Other 2,427,752 3,921 2,431,673 1,135
Due from other governments 1,358,723 - 1,358,723 -
Internal balances (583,562)583,562 --
Inventories 396,478 69,321 465,799 -
Prepaid items 667,413 6,580 673,993 43,999
Due from fiduciary funds 87,136 -87,136 -
Capital Assets
Capital assets not being depreciated 104,945,459 9,120,983 114,066,442 238,500
Capital assets being depreciated, net of
accumulated depreciation 94,038,770 49,546,224 143,584,994 2,886,301
Total Assets 291,646,558 73,931,606 365,578,164 10,890,234
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 21,789 265,762 287,551 -
Deferred outflows of resources related to pensions 3,247,934 89,350 3,337,284 82,127
Total Deferred Outflows of Resources 3,269,723 355,112 3,624,835 82,127
LIABILITIES
Accounts payable 1,672,002 1,327,657 2,999,659 87,290
Accrued liabilities 1,764,767 432,464 2,197,231 79,256
Accrued interest payable 360,188 219,119 579,307 -
Deposits 948,296 -948,296 -
Unearned revenue 2,349,957 301,680 2,651,637 -
Due to fiduciary funds 43,663 -43,663 -
Noncurrent Liabilities
Due within one year 1,549,625 1,992,000 3,541,625 33,333
Due in more than one year 76,818,472 19,497,053 96,315,525 420,951
Total Liabilities 85,506,970 23,769,973 109,276,943 620,830
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions 6,480,158 836,363 7,316,521 722,555
Property taxes levied for future periods 27,134,875 -27,134,875 4,010,981
Total Deferred Inflows of Resources 33,615,033 836,363 34,451,396 4,733,536
NET POSITION
Net investment in capital assets 166,607,491 40,729,712 207,337,203 3,094,112
Restricted for
Culture and recreation 3,170,905 - 3,170,905 -
Highways and streets 514,629 - 514,629 -
Public safety 643,857 - 643,857 -
Cemetery purposes 6,945,742 - 6,945,742 -
Affordable housing 1,417,922 - 1,417,922 -
Capital projects 6,338,753 - 6,338,753 -
Debt service 1,161,697 - 1,161,697 -
Unrestricted (11,006,718)8,950,670 (2,056,048)2,523,883
TOTAL NET POSITION $ 175,794,278 $ 49,680,382 $ 225,474,660 $ 5,617,995
See accompanying notes to financial statements.
Page 1647
CITY OF LAKE FOREST
STATEMENT OF ACTIVITIES
For the Year Ended April 30, 2018
Program Revenues
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Primary Government
Governmental Activities
General government $ 9,884,646 $ 5,203,210 $ 358,419 $ 356,178
Highway and streets 9,621,569 1,006,644 510,249 -
Sanitation 2,585,940 721,276 --
Culture and recreation 10,003,119 3,491,365 418,269 -
Public safety 17,017,092 1,992,985 11,069 -
Interest on long-term debt 1,271,181 ---
Total Governmental Activities 50,383,547 12,415,480 1,298,006 356,178
Business-type Activities
Waterworks and Sewerage 8,122,998 8,083,554 --
Deerpath Golf Course 1,604,261 1,480,618 --
Total Business-type Activities 9,727,259 9,564,172 --
Total Primary Government $ 60,110,806 $ 21,979,652 $ 1,298,006 $ 356,178
Component Unit
Lake Forest Library $ 3,763,808 $ 72,987 $ 182,817 $-
General Revenues
Taxes
Property
Home rule sales
Utility
Real estate transfer
Other
Intergovernmental
Sales
Income
Telecommunication
Replacement
Other
Investment income
Total General Revenues
Gain (loss) on sale of assets
Transfers
Total General Revenues and Transfers
Change in net position
NET POSITION - Beginning of Year
NET POSITION - END OF YEAR
See accompanying notes to financial statements.
Page 1748
Net (Expenses) Revenues and Changes in Net Position
Primary Government Component Unit
Governmental
Activities
Business-type
Activities Totals
Lake Forest
Library
$(3,966,839)$-$(3,966,839)$-
(8,104,676)-(8,104,676)-
(1,864,664)-(1,864,664)-
(6,093,485)-(6,093,485)-
(15,013,038)-(15,013,038)-
(1,271,181)-(1,271,181)-
(36,313,883)-(36,313,883)-
-(39,444)(39,444)-
-(123,643)(123,643)-
-(163,087)(163,087)-
(36,313,883)(163,087)(36,476,970)-
---(3,508,004)
26,193,444 - 26,193,444 3,948,138
583,101 - 583,101 -
2,358,448 - 2,358,448 -
1,622,900 - 1,622,900 -
222,057 - 222,057 -
2,105,736 - 2,105,736 -
2,272,639 - 2,272,639 -
1,081,917 - 1,081,917 -
135,417 - 135,417 37,364
1,237,671 61,835 1,299,506 -
1,665,391 236,990 1,902,381 69,186
39,478,721 298,825 39,777,546 4,054,688
(3,874)-(3,874)-
(4,343,841)4,343,841 --
35,131,006 4,642,666 39,773,672 4,054,688
(1,182,877)4,479,579 3,296,702 546,684
176,977,155 45,200,803 222,177,958 5,071,311
$ 175,794,278 $ 49,680,382 $ 225,474,660 $ 5,617,995
See accompanying notes to financial statements.
Page 1849
CITY OF LAKE FOREST
BALANCE SHEET
GOVERNMENTAL FUNDS
As of April 30, 2018
General
Parks and
Recreation Capital
Improvements
Nonmajor
Governmental
Funds Totals
ASSETS
Cash and cash equivalents $ 30,715,101 $ 2,412,704 $ 6,422,944 $ 5,845,637 $ 45,396,386
Investments - - - 6,065,340 6,065,340
Receivables (net)
Property taxes 18,979,072 5,588,969 814,116 1,752,718 27,134,875
Other taxes 383,312 - - - 383,312
Accounts 604,395 268,502 953,696 - 1,826,593
Loans 311,283 --- 311,283
Other --- 533,677 533,677
Due from other governments 1,306,270 8,098 - 44,355 1,358,723
Advances to other funds --- 380,000 380,000
Due from other funds - 261,005 -- 261,005
Due from fiduciary funds --- 87,136 87,136
Inventories 64,027 --- 64,027
Prepaid items 86,011 --28,689 114,700
TOTAL ASSETS $ 52,449,471 $ 8,539,278 $ 8,190,756 $ 14,737,552 $ 83,917,057
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES
Liabilities
Accounts payable $ 563,045 $ 222,757 $ 243,173 $ 76,123 $ 1,105,098
Accrued liabilities 847,525 187,728 - 23,326 1,058,579
Deposits 897,448 4,848 28,000 18,000 948,296
Unearned revenue 1,837,836 503,497 8,624 - 2,349,957
Advances from other funds -- 380,000 - 380,000
Due to fiduciary funds 43,663 ---43,663
Total Liabilities 4,189,517 918,830 659,797 117,449 5,885,593
Deferred Inflows of Resources
Property taxes levied for a future period 18,979,072 5,588,969 814,116 1,752,718 27,134,875
Unavailable revenues --778,796 1,344 780,140
Total Deferred Inflows of Resources 18,979,072 5,588,969 1,592,912 1,754,062 27,915,015
Fund Balances
Nonspendable 150,038 - - 28,688 178,726
Restricted - 2,031,479 5,938,047 12,837,353 20,806,879
Unassigned 29,130,844 ---29,130,844
Total Fund Balances 29,280,882 2,031,479 5,938,047 12,866,041 50,116,449
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES, AND
FUND BALANCES $ 52,449,471 $ 8,539,278 $ 8,190,756 $ 14,737,552 $ 83,917,057
See accompanying notes to financial statements.
Page 1950
CITY OF LAKE FOREST
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
As of April 30, 2018
Total Fund Balances - Governmental Funds $ 50,116,449
Amounts reported for governmental activities in the statement of net position are
different because:
Capital assets used in governmental funds are not financial resources and,
therefore, are not reported in the funds. See Note III. C. 198,984,229
Less amount reported in internal service funds below.(8,913)
Some receivables that are not currently available are reported as unavailable
revenues in the fund financial statements but are recognized as revenue when
earned in the government-wide statements. 780,140
Deferred outflows of resources related to pensions do not relate to current financial
resources and are not reported in the governmental funds. 3,247,934
Less amount reported in internal service funds below.(34,421)
Deferred inflows of resources related to pensions do not relate to current financial
resources and are not reported in the governmental funds.(6,480,158)
Less amount reported in internal service funds below.283,868
Some liabilities, including long-term debt, are not due and payable in the current
period and therefore, are not reported in the funds.
Bonds and notes payable (33,358,409)
Compensated absences (1,867,706)
Accrued interest (360,188)
Unamortized debt discount 22,443
Unamortized debt premium (124,572)
Net pension liabilities (42,740,885)
Other post-employment obligation (298,968)
Less amount reported in internal service funds below.84,190
A deferred charge on refunding represents a consumption of net position that
applies to a future period and, therefore, is not reported in the funds. 21,789
The net position of the internal service funds are included in the governmental
activities in the Statement of Net Position. 7,527,456
NET POSITION OF GOVERNMENTAL ACTIVITIES $ 175,794,278
See accompanying notes to financial statements.
Page 2051
CITY OF LAKE FOREST
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
For the Year Ended April 30, 2018
General
Parks and
Recreation Capital
Improvements
Nonmajor
Governmental
Funds Totals
REVENUES
Taxes:
Property $ 18,186,629 $ 5,517,237 $ 827,728 $ 1,661,850 $ 26,193,444
Other 3,115,606 - 1,646,900 24,000 4,786,506
Intergovernmental 5,781,763 42,607 - 506,813 6,331,183
Licenses and permits 3,232,276 --- 3,232,276
Fines, forfeitures and penalties 345,438 --- 345,438
Charges for services 3,568,354 2,675,688 725,624 1,863,413 8,833,079
Grants and contributions 18,950 266,629 274,408 437,302 997,289
Investment income 486,609 63,656 82,955 919,947 1,553,167
Miscellaneous 1,110,893 5,165 64,254 650,840 1,831,152
Total Revenues 35,846,518 8,570,982 3,621,869 6,064,165 54,103,534
EXPENDITURES
Current
General government 9,851,906 - 30,339 587,495 10,469,740
Highways and streets 2,354,587 - - - 2,354,587
Sanitation 2,290,986 - - - 2,290,986
Culture and recreation - 8,295,942 - 557,605 8,853,547
Public safety 15,181,216 - - 339,563 15,520,779
Capital Outlay 51,489 492,996 5,330,350 2,872,046 8,746,881
Debt Service
Principal retirement 483,360 - - 1,298,796 1,782,156
Interest and fiscal charges ---1,277,596 1,277,596
Total Expenditures 30,213,544 8,788,938 5,360,689 6,933,101 51,296,272
Excess (deficiency) of revenues over expenditures 5,632,974 (217,956)(1,738,820)(868,936)2,807,262
OTHER FINANCING SOURCES (USES)
Transfers in - 308,500 3,076,762 1,414,012 4,799,274
Proceeds from capital asset sales - 1,485 24,591 - 26,076
Transfers out (5,929,540)(837,000)-(283,480)(7,050,020)
Total Other Financing Sources (Uses)(5,929,540)(527,015)3,101,353 1,130,532 (2,224,670)
Net Change in Fund Balances (296,566) (744,971) 1,362,533 261,596 582,592
FUND BALANCES - Beginning of Year 29,577,448 2,776,450 4,575,514 12,604,445 49,533,857
FUND BALANCES - END OF YEAR $ 29,280,882 $ 2,031,479 $ 5,938,047 $ 12,866,041 $ 50,116,449
See accompanying notes to financial statements.
Page 2152
CITY OF LAKE FOREST
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended April 30, 2018
Net change in fund balances - total governmental funds $ 582,592
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 position
the cost of these assets is capitalized and they are depreciated over their estimated useful lives and
reported as depreciation expense in the statement of activities.
Capital outlay is reported as an expenditure in the fund financial statements but is capitalized
in the government-wide financial statements 4,185,055
Depreciation is reported in the government-wide financial statements (5,806,783)
Loss on sale or retirement of capital assets (3,874)
Less amount reported in internal service funds below 4,805
Receivables not currently available are reported as revenue when collected or currently available in
the fund financial statements but are recognized as revenue when earned in the government-wide
financial statements.
Unavailable revenue (666,683)
Debt issued provides current financial resources to governmental funds, but issuing debt increases
long-term liabilities in the statement of net position. Repayment of debt principal is an expenditure
in the governmental funds, but the repayment reduces long-term liabilities in the statement of net
position.
Principal repaid 1,782,156
Governmental funds report debt premiums and discounts as other
financing sources (uses). However, in the statement of net position, these are reported as additions
to or deductions from long-term debt. These are allocated over the period the debt is outstanding in
the statement of activities and are reported as interest expense.
Debt discount (3,345)
Debt premium 19,553
Some expenses in the statement of activities do not require the use of current financial resources
and, therefore, are not reported as expenditures in the governmental funds.
Compensated absences (51,443)
Accrued interest on debt 11,607
Amortization of deferred charge on refunding (21,400)
Net pension liability 8,218,394
Deferred outflows of resources related to pensions (5,627,009)
Deferred inflows of resources related to pensions (4,392,128)
Other post-employment benefits (4,599)
Less amount reported in internal service funds below 16,972
Internal service funds are used by management to charge self insurance costs and fleet charges to
individual funds. The change in net position of the internal service fund reported with governmental
activities 573,253
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ (1,182,877)
See accompanying notes to financial statements.
Page 2253
CITY OF LAKE FOREST
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
As of April 30, 2018
Business-type Activities - Enterprise Funds
Waterworks
and Sewerage
Nonmajor
Enterprise
Fund -
Deerpath Golf
Course Totals
Governmental
Activities -
Internal
Service Funds
ASSETS
Current Assets
Cash and cash equivalents $ 12,449,594 $ 778,555 $ 13,228,149 $ 7,190,600
Receivables
Accounts 1,369,595 3,271 1,372,866 -
Other 3,921 - 3,921 1,894,075
Inventories - 69,321 69,321 332,451
Prepaid items -6,580 6,580 552,713
Total Current Assets 13,823,110 857,727 14,680,837 9,969,839
Noncurrent Assets
Capital Assets
Capital assets not being depreciated 7,744,324 1,376,659 9,120,983 -
Capital assets being depreciated 105,271,525 4,075,843 109,347,368 48,047
Less: Accumulated depreciation (56,884,585)(2,916,559)(59,801,144)(39,134)
Total Noncurrent Assets 56,131,264 2,535,943 58,667,207 8,913
Total Assets 69,954,374 3,393,670 73,348,044 9,978,752
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 253,153 12,609 265,762 -
Deferred outflows of resources related to
pensions 87,937 1,413 89,350 34,421
Total Deferred Outflows of Resources 341,090 14,022 355,112 34,421
See accompanying notes to financial statements.
Page 2354
CITY OF LAKE FOREST
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
As of April 30, 2018
Business-type Activities - Enterprise Funds
Waterworks
and Sewerage
Nonmajor
Enterprise
Fund -
Deerpath Golf
Course Totals
Governmental
Activities -
Internal
Service Funds
LIABILITIES
Current Liabilities
Accounts payable 1,131,740 195,917 1,327,657 566,904
Accrued liabilities 410,938 21,526 432,464 706,188
Accrued interest payable 213,465 5,654 219,119 -
Unearned revenue 17,801 283,879 301,680 -
General obligation bonds 1,909,000 78,000 1,987,000 -
Compensated absences 4,981 19 5,000 -
Due to other funds -261,005 261,005 -
Total Current Liabilities 3,687,925 846,000 4,533,925 1,273,092
Noncurrent Liabilities
Long-Term Debt
General obligation debt payable 18,637,357 487,507 19,124,864 -
Compensated absences 223,998 593 224,591 34,094
Net pension liability 145,247 2,351 147,598 50,096
Total Noncurrent Liabilities 19,006,602 490,451 19,497,053 84,190
Total Liabilities 22,694,527 1,336,451 24,030,978 1,357,282
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to
pensions 823,044 13,319 836,363 283,868
Total Deferred Inflows of Resources 823,044 13,319 836,363 283,868
NET POSITION
Net investment in capital assets 38,746,668 1,983,044 40,729,712 8,913
Unrestricted 8,031,225 74,878 8,106,103 8,363,110
TOTAL NET POSITION $ 46,777,893 $ 2,057,922 48,835,815 $ 8,372,023
Adjustments to reflect the consolidation of
internal service funds activities related to
enterprise funds. 844,567
Net Position of Business-type Activities
reported in the government-wide statement
of net position.$ 49,680,382
See accompanying notes to financial statements.
Page 2455
CITY OF LAKE FOREST
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended April 30, 2018
Business-type Activities - Enterprise Funds
Waterworks
and Sewerage
Nonmajor
Enterprise
Fund -
Deerpath Golf
Course Totals
Governmental
Activities -
Internal
Service Funds
OPERATING REVENUES
Charges for services $ 7,970,710 $ 1,480,618 $ 9,451,328 $ 8,487,566
Connection fees 90,635 - 90,635 -
Miscellaneous 22,209 -22,209 -
Total Operating Revenues 8,083,554 1,480,618 9,564,172 8,487,566
OPERATING EXPENSES
General and administrative 2,511,247 598,558 3,109,805 7,970,475
Operations and maintenance 2,203,728 853,619 3,057,347 -
Depreciation and amortization 2,733,517 171,288 2,904,805 4,805
Total Operating Expenses 7,448,492 1,623,465 9,071,957 7,975,280
Operating Income (Loss)635,062 (142,847)492,215 512,286
NONOPERATING REVENUES (EXPENSES)
Investment income 229,492 7,498 236,990 112,224
Loss on disposal of capital assets 16,704 - 16,704 -
Interest expense (633,279)(14,576)(647,855)-
Paying agent fees (57,908)-(57,908)-
Other 11,352 32,983 44,335 -
Total Nonoperating Revenues
(Expenses)(433,639)25,905 (407,734)112,224
Income (Loss) Before Transfers 201,423 (116,942)84,481 624,510
TRANSFERS
Capital contributions 2,093,095 - 2,093,095 -
Transfers in 752,508 1,498,238 2,250,746 -
Total Transfers 2,845,603 1,498,238 4,343,841 -
Change in Net Position 3,047,026 1,381,296 4,428,322 624,510
NET POSITION - Beginning of Year 43,730,867 676,626 44,407,493 7,747,513
NET POSITION- END OF YEAR $ 46,777,893 $ 2,057,922 $ 48,835,815
$ 8,372,023
Adjustment to change in net position to reflect
the consolidation of internal service funds
activities related to enterprise funds 51,257
Change in Net Position of Business-type
Activities reported in the government-wide
statement of activities.$ 4,479,579
See accompanying notes to financial statements.
Page 2556
CITY OF LAKE FOREST
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended April 30, 2018
Business-type Activities - Enterprise Funds
Waterworks
and Sewerage
Nonmajor
Enterprise
Fund -
Deerpath Golf
Course Totals
Governmental
Activities -
Internal
Service Funds
CASH FLOWS FROM OPERATING
ACTIVITIES
Received from customers $ 8,072,783 $ 1,475,001 $ 9,547,784 $ 8,336,059
Paid to suppliers for goods and services (2,343,380)(889,405)(3,232,785)(7,361,155)
Paid to employees (2,353,115)(596,711)(2,949,826)(747,888)
Net Cash Flows From Operating
Activities 3,376,288 (11,115)3,365,173 227,016
CASH FLOWS FROM INVESTING
ACTIVITIES
Investments sold and matured 229,492 7,498 236,990 112,224
Net Cash Flows From Investing
Activities 229,492 7,498 236,990 112,224
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from (to) other funds 752,508 1,634,243 2,386,751 -
Miscellaneous 11,352 32,983 44,335 -
Net Cash Flows From Noncapital
Financing Activities 763,860 1,667,226 2,431,086 -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Debt issued 9,295,000 - 9,295,000 -
Principal paid (1,872,000)(80,000)(1,952,000)-
Interest paid (411,623)(11,817)(423,440)-
Acquisition and construction of capital
assets (5,877,517)(1,273,566)(7,151,083)-
Other - paying agent fees (57,908)-(57,908)-
Net Cash Flows From Capital and
Related Financing Activities 1,075,952 (1,365,383)(289,431)-
Net Change in Cash and Cash
Equivalents 5,445,592 298,226 5,743,818 339,240
CASH AND CASH EQUIVALENTS - Beginning
of Year 7,004,002 480,329 7,484,331 6,851,360
CASH AND CASH EQUIVALENTS - END
OF YEAR $ 12,449,594 $ 778,555 $ 13,228,149 $ 7,190,600
See accompanying notes to financial statements.
Page 2657
CITY OF LAKE FOREST
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended April 30, 2018
Business-type Activities - Enterprise Funds
Waterworks
and Sewerage
Nonmajor
Enterprise
Fund -
Deerpath Golf
Course Totals
Governmental
Activities -
Internal
Service Funds
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH FLOWS FROM
OPERATING ACTIVITIES
Operating income (loss)$ 635,062 $(142,847)$ 492,215 $ 512,286
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Flows From
Operating Activities
Depreciation 2,733,517 171,288 2,904,805 4,805
Changes in assets and liabilities
Accounts receivable (10,776)5,209 (5,567)(150,293)
Inventories -936 936 11,815
Prepaid items - 29,074 29,074 (37,230)
Deferred outflows related to pensions 624,002 10,277 634,279 204,215
Accounts payable (139,652)(65,796)(205,448)43,015
Accrued liabilities ---(213,235)
Accrued salaries 5,328 118 5,446 40,095
Net pension liability (1,245,812)(20,468)(1,266,280)(419,068)
Deferred inflows related to pensions 742,391 11,995 754,386 256,666
Unearned revenue 5 (10,826)(10,821)(1,214)
Compensated absences 32,223 (75)32,148 (24,841)
NET CASH FLOWS FROM
OPERATING ACTIVITIES $ 3,376,288 $ (11,115)$ 3,365,173 $ 227,016
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Property contributed by governmental
activities $ 2,093,095 $-$-
See accompanying notes to financial statements.
Page 2758
CITY OF LAKE FOREST
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
As of April 30, 2018
Private
Purpose Trust Pension Trusts Agency Fund
ASSETS
Cash $ - $ 898,409 $ 60,174
Money markets 12,302 76,883 -
Investments
U.S. treasury obligations - 12,948,174 -
U.S. government agencies - 2,900,472 -
Municipal/corporate bonds - 7,440,861 -
Equity securities 309,579 --
Mutual funds 303,726 40,043,470 -
Real estate investment fund - 3,421,996 -
Interest receivable - 150,846 -
Prepaid items -9,840 -
Due from primary government -43,663 -
Total Assets 625,607 67,934,614 60,174
LIABILITIES
Accounts payable 199 27,194 -
Due to primary government 87,136 --
Due to special assessment districts --60,174
Total Liabilities 87,335 27,194 60,174
NET POSITION
Restricted for pension benefits - 67,907,420 -
Restricted for other purposes 538,272 --
TOTAL NET POSITION $ 538,272 $ 67,907,420 $-
See accompanying notes to financial statements.
Page 2859
CITY OF LAKE FOREST
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
For the Year Ended April 30, 2018
Private
Purpose Trust Pension Trusts
ADDITIONS
Contributions
Employer $- $ 3,402,473
Employee - 675,702
Miscellaneous -50
Total Contributions -4,078,225
Investment income
Interest 11,306 1,338,569
Net appreciation in fair value of investments 73,814 3,764,823
Total Investment Income 85,120 5,103,392
Less Investment expense -201,682
Net Investment Income 85,120 4,901,710
Total Additions 85,120 8,979,935
DEDUCTIONS
Pension benefits and refunds - 5,031,547
Other administrative expenses 36,049 9,480
Total Deductions 36,049 5,041,027
Change in Net Position 49,071 3,938,908
NET POSITION - Beginning of Year 489,201 63,968,512
NET POSITION - END OF YEAR $ 538,272 $ 67,907,420
See accompanying notes to financial statements.
Page 2960
CITY OF LAKE FOREST
INDEX TO NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE Page
I Summary of Significant Accounting Policies 31
A. Reporting Entity 31
B. Government-Wide and Fund Financial Statements 33
C. Measurement Focus, Basis of Accounting, and Financial Statement
Presentation 36
D.Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of
Resources and Net Position or Equity 38
1. Deposits and Investments 38
2. Receivables 42
3. Inventories and Prepaid Items 43
4. Capital Assets 43
5. Deferred Outflows of Resources 44
6. Compensated Absences 45
7. Long-Term Obligations 45
8. Deferred Inflows of Resources 45
9. Equity Classifications 46
II Stewardship, Compliance, and Accountability 48
A. Budgetary Information 48
III Detailed Notes on All Funds 49
A. Deposits and Investments 49
B. Receivables 55
C. Capital Assets 56
D. Interfund Advances and Transfers 59
E. Long-Term Obligations 61
F. Lease Disclosures 63
G. Fund Balances 64
IV Other Information 65
A. Employees' Retirement System 65
B. Risk Management 80
C. Joint Ventures 82
D. Commitments and Contingencies 83
E. Other Postemployment Benefits 83
F. Laurel and Western Tax Increment Financing (TIF) District 86
G. Effect of New Accounting Standards on Current-Period Financial Statements 87
See accompanying notes to financial statements.
Page 3061
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Lake Forest, Illinois (the City) was incorporated in 1861 under a charter granted by the Illinois
State Legislature that was amended in 1869. The City is a home-rule municipality, under the 1970 Illinois
Constitution, located in Lake County, Illinois. The City provides the following services as authorized by its
charter: public safety (police and fire protection), water and sewer, recreation, refuse collection, a senior
center, public library, a cemetery, and a golf course.
The accounting policies of the City of Lake Forest, Illinois conform to accounting principles generally
accepted 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 the
Governmental Accounting Standards Board (GASB).
A.REPORTING ENTITY
This report includes all of the funds of the City. The reporting entity for the City consists of the primary
government and its component units. Component units are legally separate organizations for which the
primary government is financially accountable or other organizations for which the nature and significance
of their relationship with the primary government are such that their exclusion would cause the reporting
entity's financial statements to be misleading. The primary government is financially accountable if (1) it
appoints a voting majority of the organization's governing body and it is able to impose its will on that
organization, (2) it appoints a voting majority of the organization's governing body and there is a potential
for the organization to provide specific financial benefits to, or impose specific financial burdens on, the
primary government, (3) the organization is fiscally dependent on and there is a potential for the
organization to provide specific financial benefits to, or impose specific financial burdens on, the primary
government. Certain legally separate, tax exempt organizations should also be reported as a component
unit if all of the following criteria are met: (1) the economic resources received or held by the separate
organization are entirely or almost entirely for the direct benefit of the primary government, its component
units, or its constituents; (2) the primary government or its component units, is entitled to, or has the
ability to access, a majority of the economic resources received or held by the separate organization; and
(3) the economic resources received or held by an individual organization that the primary government, or
its component units, is entitled to, or has the ability to otherwise access, are significant to the primary
government.
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. A
component unit should be reported as part of the primary government using the blending method if it
meets any one of the following criteria: (1) the primary government and the component unit have
substantively the same governing body and a financial benefit or burden relationship exists, (2) the
primary government and the component unit have substantively the same governing body and
management of the primary government has operational responsibility for the component unit, (3) the
component unit serves or benefits, exclusively or almost exclusively, the primary government rather than
its citizens, or (4) the total debt of the component unit will be paid entirely or almost entirely from
resources of the primary government.
Page 3162
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
A.REPORTING ENTITY (cont.)
The Police Pension Employees Retirement System (PPERS) is established for the City's police
employees. PPERS 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 beneficiary elected by the beneficiaries, and two police employees elected by the active police
constitute the pension board. The City and the PPERS participants are obligated to fund all PPERS costs
based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the City
is authorized to approve the actuarial assumptions used in the determination of contribution levels.
Although it possesses many characteristics of a legally separate government, PPERS is reported as if it
were part of the primary government because its sole purpose is to finance and administer the pensions
of the City’s police employees and because of the fiduciary nature of such activities. PPERS is reported
as a pension trust 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 beneficiary elected by the beneficiaries; and two fire employees elected by the active firefighters'
constitute the pension board. The City and the FPERS participants are obligated to fund all FPERS costs
based upon actuarial valuations. The State of Illinois is authorized to establish benefit levels and the City
is authorized to approve the actuarial assumptions used in the determination of contribution levels.
Although it possesses many of the characteristics of a legally separate government, FPERS is reported
as if it were part of the primary government because its sole purpose is to finance and administer the
pensions of the City’s firefighters because of the fiduciary nature of such activities. FPERS is reported as
a pension trust 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 FPERS.
Discretely Presented Component Unit
Lake Forest Library
The 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
board of the Library is appointed by the Mayor of the City. The Library is financially accountable to the
City as the City's approval is needed for the Library to issue bonded debt. Complete financial statements
of the Library are available at the City's Administrative Office, 800 North Field Drive, Lake Forest, Illinois
60045. The Library follows the same accounting policies as the City.
Page 3263
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
Government-Wide Financial Statements
The statement of net position and statement of activities display information about the reporting
government as a whole. They include all funds of the reporting entity except for fiduciary funds. The
statements distinguish between governmental and business-type activities. Governmental activities
generally 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 or
services. Likewise, the primary government is reported separately from certain legally separate
component 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 or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. The City does not allocate indirect expenses to functions in the statement of
activities. Program revenues include 1) charges to customers or applicants who purchase, use or directly
benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a particular function
or segment. Taxes and other items not included among program revenues are reported as general
revenues. Internally dedicated resources are reported as general revenues rather than as program
revenues.
Fund Financial Statements
Financial statements of the City are organized into funds, each of which is considered to be a separate
accounting 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, net
position/fund balance, revenues, and expenditures/expenses.
Page 3364
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE 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 proprietary
statements. An emphasis is placed on major funds within the governmental and proprietary categories. A
fund 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% of
the 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 at
least 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 particularly
important 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 individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial 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 and
report 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 recreation
programs. Services include a fitness center, dance academy, and a variety of other indoor
and outdoor programs. Principal revenue sources for this fund include a dedicated tax levy,
grants, contributions, and program fees.
Capital Improvements Fund - used to account for revenues to be used to fund City building and
infrastructure projects.
The City reports the following major enterprise fund:
Waterworks and Sewerage Fund - accounts for operations of the waterworks and sewerage
system for the residents of the City.
Page 3465
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE 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 revenue
sources that are restricted or committed to expenditures for specified purposes (other than debt
service or capital projects).
Police Restricted
Foreign Fire Insurance Tax
Emergency Telephone
Parks and Public Land
Motor Fuel Tax
General Cemetery
Senior Resources Commission
Housing Trust
Debt 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 Fund - used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for capital outlays, including the acquisition or
construction of capital facilities and other capital assets.
Laurel/Western Redevelopment TIF
Improvements
Enterprise Fund - used to account for and report any activity for which a fee is charged to
external uses for goods or services, and must be used for activities which meet certain debt or
cost recovery criteria.
Deerpath Golf Course
In addition, the City reports the following fund types:
Internal Service Funds - used to account for and report the financing of goods or services
provided by one department or agency to other departments or agencies of the City, or to other
governmental units, on a cost-reimbursement basis.
Fleet
Self Insurance
Liability Insurance
Page 3566
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE 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 on
which the investment earnings are expected to be used for the maintenance of each individual's
cemetery plot.
Pension (and Other Employee Benefit) Trust Funds - used to account for and report resources
that are required to be held in trust for the members and beneficiaries of defined benefit
pension plans, defined contribution plans, other postemployment benefit plans, or other
employee benefit plans.
Firefighters' Pension
Police Pension
Agency Fund - used to account for and report assets held by the City in a trustee capacity or as
an agent for individuals, private organizations, and/or other governmental units.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION
Government-Wide Financial Statements
The government-wide statement of net position and statement of activities are reported using the
economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of
accounting, revenues are recognized when earned and expenses are recorded when the liability is
incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting
from exchange and exchange-like transactions are recognized when the exchange takes place. Property
taxes are recognized as revenues in the year for which they are levied. Taxes receivable for the following
year are recorded as receivables and deferred inflows. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the provider are met. Special assessments are
recorded as revenue 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 financial
statements.
Page 3667
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION (cont.)
Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recorded when they are both
measurable and available. Available means collectible within the current period or soon enough thereafter
to be used to pay liabilities of the current period. For this purpose, the City considers revenues, except for
property taxes and income taxes, to be available if they are collected within 90 days of the end of the
current fiscal period. Revenues for property taxes are considered to be available if they are collected
within 60 days of the end of the current fiscal year. Revenues for income taxes are considered to be
available if they are collected within 120 days of the end of the current fiscal year. Expenditures are
recorded 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 fund
liability 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 recognized
as 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 to the
resources and the amounts are available. Amounts owed to the City which are not available are recorded
as receivables and unavailable revenues. Amounts received before eligibility requirements (excluding
time requirements) are met are recorded as liabilities. Amounts received in advance of meeting time
requirements 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 measurable and available under the criteria described above.
Proprietary and fiduciary fund financial statements (other than agency funds) are reported using the
economic resources measurement focus and the accrual basis of accounting, as described previously in
this 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. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the
Waterworks and Sewerage Fund and the Deerpath Golf Course Fund are charges to customers for sales
and 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 this
definition are reported as nonoperating revenues and expenses.
Page 3768
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION (cont.)
All Financial Statements
The preparation of financial statements in conformity with generally accepted accounting principles
requires 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 contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and
expenditures/expenses during the reporting period. Actual results could differ from those estimates.
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
NET POSITION OR EQUITY
1. Deposits and Investments
For purposes of the statement of cash flows, the City considers all highly liquid investments with an initial
maturity of three months or less when acquired to be cash equivalents.
The City and Library are authorized to invest in the following types of securities under Illinois law and the
City's investment policy:
Bonds, notes, certificates of indebtedness, treasury bills, or other securities which are
guaranteed by the full faith and credit of the United States of America;
Bonds, notes, debentures, or other similar obligations of U.S. Government or its agencies;
Interest bearing bonds of any county, township, city, incorporated town, municipal corporation,
or school district, and the bonds shall be registered in the name of the municipality or held
under a custodial agreement at a bank, provided the bonds shall be rated at the time of
purchase within the 4 highest general classifications established by a rating service of
nationally recognized expertise in rating bonds of both states and their political subdivisions;
Interest bearing savings accounts, interest bearing certificates of deposit, interest bearing
deposits, or any other investments constituting direct obligations of any bank as defined by the
Illinois Banking Act (205 ILCS 5/1 et. seq.), provided, however, that such investments may be
made 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 in
assets, rating must be within the highest tier (e.g. A-1, P-1, F-1, D-1, or higher) by two
standard rating services, must mature within 180 days of purchase, such purchases cannot
exceed 10% of the corporation's outstanding obligations, and such purchases cannot exceed
one-third of funds;
Page 3869
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
NET POSITION OR EQUITY (cont.)
1. Deposits and Investments (cont.)
Money Market Mutual Funds - registered under the Investment Company Act of 1940 (15
U.S.C.A. § 80a-1 et. seq.), provided the portfolio is limited to bonds, notes, certificates,
treasury bills, or other securities which are guaranteed by the full faith and credit of the federal
government as to principal and interest;
Short term discount obligations of the Federal National Mortgage Association (established by
or under the National Housing Act (1201 U.S.C. 1701 et. seq.)), or in shares or other forms of
securities legally issuable by savings banks or savings and loans 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 loans
associations are insured by the Federal Deposit Insurance Corporation;
Dividend-bearing share accounts, share certificate accounts, or class of share accounts of a
credit union chartered under the 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 of
Illinois; and, provided further, that such investments may be made only in those credit union
accounts of which are insured by applicable law;
The Public Treasurer's Investment Pool created under Section 17 of the State Treasurer Act
(15 ILCS 505/17) or in a fund managed, operated, and administered by a bank subsidiary of a
bank, or subsidiary of a bank holding company, or use the services of such an entity to hold
and invest or advise regarding the investment of any public funds; and
Repurchase agreements of government securities having the meaning set out in the
Government Securities Act of 1986 (15 U.S.C.A § 780-5) subject to the provisions of that Act
and the regulations issued there under, provided, however, that such government securities,
unless registered or inscribed in the name of the City, shall be purchased through banks or
trust companies authorized to do business in the State of Illinois; and such other repurchase
agreements as are authorized in subsection (h) of Section 2 of the Public Funds Investment
Act (30 ILCS 235/2). Repurchase agreements may be executed only with approved financial
institutions or broker/dealers meeting the City's established standards, which shall include
mutual execution of a Master Repurchase Agreement adopted by the City.
The Lake Forest Cemetery Investment Fund is also permitted to invest in the following instruments:
Common and preferred stock authorized for investments of trust funds under the laws of the
State of Illinois limited to 60% of the fund's investments.
Page 3970
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
NET POSITION OR EQUITY (cont.)
1. Deposits and Investments (cont.)
In addition, Pension Funds are also permitted to invest in the following instruments:
Common and preferred stock authorized for investments of trust funds under the laws of the
State of Illinois limited to 35% of the fund's investments;
General accounts of Illinois-licensed life insurance companies;
Separate accounts of Illinois-licensed insurance companies invested in stocks, bonds, and
real estate limited to 10% of the fund's investments;
Bonds issued by any county, city, township, village, incorporated town, municipal corporation,
or school district in Illinois; and
Tax anticipation warrants issued by any city, township, village, incorporated town, or fire
protection district in Illinois.
Investments are stated at fair value, which is the amount at which an investment could be exchanged in a
current transaction between willing parties. Fair values are based on quoted market prices. No
investments are reported at amortized cost. Adjustments necessary to record investments at fair value
are recorded in the operating statement as increases or decreases in investment income. Investment
income on commingled investments of municipal accounting funds is allocated based on average
balances. The difference between the bank statement balance and carrying value is due to outstanding
checks and/or deposits in transit.
Illinois Funds is an investment pool managed by the State of Illinois, Office of the Treasurer, which allows
governments within the State to pool their funds for investment purposes. Illinois Funds is not registered
with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the
Investment Company Act of 1940. Investments in Illinois Funds are valued at Illinois Fund’s share price,
the price for which the investments could be sold.
Page 4071
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
NET POSITION OR EQUITY (cont.)
1. Deposits and Investments (cont.)
The Police Pension Fund’s investment policy, in accordance with Illinois Statutes, establishes the
following target allocation across asset classes:
Asset Class Target
Long-Term
Expected Real
Rate of Return
Fixed Income 35%1.70%
Domestic Equities 36%5.20%
International Equities 18%5.60%
Real Estate 10%5.40%
Cash 1%-%
Illinois Compiled Statues (ILCS) limit the Police Pension Fund's investments in equities, mutual funds and
variable annuities to 65%. Securities in any one company should not exceed 5% of the total fund.
The long-term expected rate of return on the Police Pension Fund's investments was determined using a
building-block method in which best-estimate ranges of expected future real rates of return (net of
pension plan investment expense and inflation) were developed for each major asset class. These
ranges were combined to produce long-term expected rate of return by weighting the expected future real
rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates
of arithmetic real rates of return for each major asset class included in the Police Pension Fund's target
asset allocation are listed in the table above.
Page 4172
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
NET POSITION OR EQUITY (cont.)
1. Deposits and Investments (cont.)
The Firefighters’ Pension Fund’s investment policy, in accordance with Illinois Statutes, establishes the
following target allocation across asset classes:
Asset Class Target
Long-Term
Expected Real
Rate of Return
Ultra-Short Fixed Income 3.90%1.5%
US Fixed Income 32.40%3.0%
US Large Cap Growth Equity 25.80%8.5%
US Large Cap Value Equity 24.60%8.2%
US Mid Cap Growth Equity 3.50%9.7%
US Mid Cap Value Equity 2.60%9.0%
US Small Cap Value Equity 1.60%9.7%
Europe Equity 0.70%6.8%
Japan Equity 3.20%7.5%
Equity Return Assets 1.70%5.7%
Illinois Compiled Statues (ILCS) limit the Firefighters' Pension Fund's investments in equities, mutual
funds and variable annuities to 65%. Securities in any one company should not exceed 5% of the total
fund.
The long-term expected rate of return on the Firefighters' Pension Fund's investments was determined
using a building-block method in which best-estimate ranges of expected future real rates of return (net of
pension plan investment expense and inflation) were developed for each major asset class. These
ranges were combined to produce long-term expected rate of return by weighting the expected future real
rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates
or arithmetic real rates of return for each major asset class included in the Firefighters' Pension Fund's
target asset allocation are listed in the table above.
See Note III. A. for further information.
2. Receivables
Tax bills for levy year 2017 are prepared by Lake County and issued in May 2018 and are payable in two
installments, on or about June 1, 2018 and September 1, 2018 or within 30 days of the tax bills being
issued.
Page 4273
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
NET POSITION OR EQUITY (cont.)
2. Receivables (cont.)
The county collects such taxes and remits them periodically. The 2017 property tax levy is recognized as
a receivable and deferral in fiscal 2018, net the 1.5% allowance for uncollectible. As the taxes become
available to finance current expenditures, they are recognized as revenues. At April 30, 2018, the
property taxes receivable and related deferred inflows consisted of the estimated amount collectible from
the 2017 levy.
Property taxes for levy year 2018 attaches as an enforceable lien on January 1, 2018, on property values
assessed as of the same date. Taxes are levied by December following the lien date (by passage of a
Tax Levy Ordinance). The 2018 tax levy, which attached as an enforceable lien on the property as of
January 1, 2018, has not been recorded as a receivable as of April 30, 2018, as the tax has not yet been
levied by the City and will not be levied until December 2018, and therefore, the levy is not measurable at
April 30, 2018.
During the course of operations, transactions occur between individual funds that may result in amounts
owed between funds. Short-term interfund loans are reported as "due to and from other funds." Long-
term interfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfund
receivables and payables between funds within governmental activities are eliminated in the statement of
net position. Any residual balances outstanding between the governmental activities and business-type
activities are reported in the governmental-wide financial statements as internal balances.
3. Inventories and Prepaid Items
Inventories are recorded at cost and are recorded as expenditures/expenses when consumed rather than
when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements. The cost of prepaid items is
recorded as expenditures/expenses when consumed rather than when purchased.
4. Capital Assets
Government-Wide Statements
Capital assets, which include property, plant and equipment, are reported in the government-wide
financial statements. Capital assets are defined by the City as assets with an initial, individual cost of
more than $10,000 and an estimated useful life in excess of one year. All capital assets are valued at
historical cost, or estimated historical cost if actual amounts are unavailable. Donated capital assets are
recorded at acquisition value at the date of donation.
Page 4374
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
NET POSITION OR 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 construction
when significant. For tax-exempt debt, the amount of interest capitalized equals the interest expense
incurred during construction netted against any interest revenue from temporary investment of borrowed
fund proceeds. No interest was capitalized during the current year. The cost of renewals and betterments
relating to retirement units is added to plant accounts. The cost of property replaced, retired or otherwise
disposed of, is deducted from plant accounts and, generally, together with removal costs less salvage, is
charged to accumulated depreciation.
Depreciation and amortization of all exhaustible capital assets is recorded as an allocated expense in the
statement of activities, with accumulated depreciation and amortization reflected in the statement of net
position. Depreciation and amortization is provided over the assets' estimated useful lives using the
straight-line method. The range of estimated useful lives by type of asset is as follows:
Public domain infrastructure 20 - 60 Years
Buildings 30 - 50 Years
Improvements other than buildings 40 - 80 Years
Vehicles, machinery, equipment, and software 3 - 20 Years
Water mains 40 Years
Sanitary sewers 50 Years
Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are accounted for
as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in
proprietary fund 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 a
future period and will not be recognized as an outflow of resources (expense/expenditure) until that future
time.
A deferred charge on refunding arises from the advance refunding of debt. The difference between the
cost of the securities placed in trust for future payments of the refunded debt and the net carrying value of
that debt is deferred and amortized as a component of interest expense over the shorter of the term of
the refunding issue or the original term of the refunded debt. The unamortized amount is reported as a
deferred outflow of resources in the government-wide and proprietary fund financial statements.
Page 4475
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
NET POSITION OR EQUITY (cont.)
6. Compensated Absences
Under terms of employment, employees are granted sick leave and vacations in varying amounts. Only
benefits 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 proprietary
fund financial statements. A liability for these amounts is reported in governmental funds only if they have
matured, for example, as a result of employee resignations and retirements, and are payable with
expendable resources.
7. Long-Term Obligations
All long-term obligations to be repaid from governmental and business-type resources are reported as
liabilities in the government-wide statements. The long-term obligations consist primarily of notes and
bonds payable, net pension liability, and accrued compensated absences.
Long-term obligations for governmental funds are not reported as liabilities in the fund financial
statements. The face value of debts (plus any premiums) are reported as other financing sources and
payments of principal and interest are reported as expenditures. The accounting in proprietary funds is
the same as it is in the government-wide statements.
For the government-wide statements and proprietary fund statements, bond premiums and discounts are
amortized over the life of the issue using the effective interest method. The balance at year end is shown
as 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 a
future period and therefore will not be recognized as an inflow of resources (revenue) until that future
time.
Page 4576
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
NET POSITION OR EQUITY (cont.)
9. Equity Classifications
Government-Wide Statements
Equity 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 unspent
debt proceeds) of any bonds, mortgages, notes, or other borrowings that are attributable to the
acquisition, 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 other
governments 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 use
restricted resources first, then unrestricted resources as they are needed.
Fund Statements
Governmental fund balances are displayed as follows:
a. Nonspendable - Includes fund balance amounts that cannot be spent either because they are
not in spendable form or because legal or contractual requirements require them to be
maintained intact.
b. Restricted - Consists of fund balances with constraints placed on their use either by 1) external
groups such as creditors, grantors, contributors, or laws or regulations of other governments or
2) law through constitutional provisions or enabling legislation.
c. Committed - Includes fund balance amounts that are constrained for specific purposes that are
internally imposed by the government through formal action of the highest level of decision
making authority. Fund balance amounts are committed through a formal action (resolution) of
the City Council. This formal action must occur prior to the end of the reporting period, but the
amount of the commitment, which will be subject to the constraints, may be determined in the
subsequent period. Any changes to the constraints imposed require the same formal action of
the City Council that originally created the commitment.
Page 4677
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
NET POSITION OR EQUITY (cont.)
9. Equity Classifications (cont.)
Fund Statements (cont.)
d. Assigned - Includes spendable fund balance amounts that are intended to be used for specific
purposes that do not meet the criteria to be classified as restricted or committed. Intent is
expressed by: a) The City Council itself; or b) a body or official to which the City Council has
delegated the authority to assign amounts to be used for specific purposes. Annually, the City
Council approves the fiscal policy which delegates this authority to the City's Finance Director.
Within the other governmental fund types (special revenue, debt service, capital projects)
resources are assigned in accordance with the established fund purpose and approved
budget/appropriation. 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
been classified within the other above mentioned categories. Unassigned fund balance may
also include 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 when
an expenditure is incurred for which both restricted and unrestricted (i.e. committed, assigned, or
unassigned) fund balances are available, followed by committed, and then assigned fund balances.
Unassigned amounts are only used after the other resources have been used. In other governmental
funds (special revenue, capital projects, and debt service fund types), it is the City's policy to consider
restricted resources to have been spent last. When an expenditure is incurred for purposes for which
both restricted and unrestricted fund balances are available, the City first uses any assigned amounts,
followed by committed and then restricted amounts.
See Note III. G. for further information.
Page 4778
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE II - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A.BUDGETARY INFORMATION
The budget amounts represent the operating budget for the City and the appropriations represent the
City's legal expenditure limit. The City Council follows these procedures in establishing the budgetary and
appropriations data reflected in the financial statements:
(1) The City Manager submits to the City Council a proposed operating budget for the fiscal year.
The operating budget includes proposed expenditures and estimated revenues.
(2) Public budget and appropriations meetings are conducted by the City to obtain taxpayer
comments.
(3) The budget and the appropriation ordinance, which is 10% higher than the budget, are both
legally enacted through action of the City Council. Once enacted, the budget cannot be amended
without approval from the City Council. Funds may have expenditures in excess of budgeted
amounts, but legally may not have expenditures in excess of appropriations.
(4) The legal level of budgetary control is the fund level. Management may make transfers of
appropriations within a fund. Any expenditures that exceed the total appropriations at the fund
level must be approved by the City Council.
(5) Formal budgetary integration and legally adopted budgets are employed as a management
control device during the year for the General and Special Revenue Funds, through an internal
reporting system. Such budgetary integration permits the City's department managers to monitor
actual revenues and expenditures relative to budgets on an ongoing basis throughout the year.
Formal encumbrance accounting is not used, and appropriations not used by the end of the fiscal
year lapse.
(6) Governmental fund budgets are adopted for all funds and are on a basis consistent with generally
accepted accounting principles (GAAP). All proprietary funds have budgets and are generally in
accordance with GAAP except that principal retirement is budgeted and deprecation expense is
not budgeted. Additionally, the Pension Trust Funds adopted budgets which are generally in
accordance with GAAP.
Page 4879
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE III - DETAILED NOTES ON ALL FUNDS
A.DEPOSITS AND INVESTMENTS
The City's and Library's deposits and investments at year end were comprised of the following:
Carrying
Value
Statement
Balances Associated Risks
Deposits $ 55,820,005 $ 56,175,215 Custodial Credit Risk -
Deposits
Money markets 185,862 185,862 Custodial Credit Risk -
Deposits
U.S. government agencies - implicitly
guaranteed
2,900,472 2,900,472 Credit Risk, Custodial
Credit Risk - Investments,
Concentration of Credit
Risk, Interest Rate Risk
Mutual funds - other than bonds 41,572,237 41,572,237 N/A
U.S. treasury obligations 12,948,174 12,948,174 Custodial Credit Risk -
Investments, Interest
Rate Risk
Real estate investment fund 3,421,996 3,421,996 Custodial Credit Risk -
Investments
Corporate bonds 7,165,838 7,165,838 Credit Risk, Custodial
Credit Risk - Investments,
Concentration of Credit
Risk, Interest Rate Risk,
Foreign Currency Risk
Municipal bonds 275,023 275,023 Credit Risk, Custodial
Credit Risk - Investments,
Concentration of Credit
Risk, Interest Rate Risk
Illinois funds 14,727,839 14,727,839 Credit Risk
Equity securities 4,364,265 4,364,265 Custodial Credit Risk -
Investments, Foreign
Currency Risk
Mutual funds - bond funds 606,271 606,271 Credit Risk, Interest Rate
Risk, Foreign Currency
Risk
Petty cash 10,525 -N/A
Total Deposits and Investments $143,998,507 $144,343,192
Page 4980
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
Reconciliation to financial statements
Per statement of net position
Cash and cash equivalents - primary
government
$ 65,815,135
Investments - primary government 6,065,340
Cash and cash equivalents - Lake Forest
Library
3,701,986
Per statement of net position - fiduciary funds
Private Purpose Trust - money markets 12,302
Private Purpose Trust - equity securities 309,579
Private Purpose Trust - mutual funds 303,726
Agency Fund - cash 60,174
Pension Trusts - cash 898,409
Pension Trusts - money markets 76,883
Pension Trusts - U.S. treasury obligations 12,948,174
Pension Trusts - U.S. government agencies 2,900,472
Pension Trusts - Municipal/corporate bonds 7,440,861
Pension Trusts - mutual funds 40,043,470
Pension Trusts - real estate investment fund 3,421,996
Total Deposits and Investments $143,998,507
Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time and
savings accounts (including NOW accounts) and $250,000 for demand deposit accounts (interest-bearing
and noninterest-bearing). In addition, if deposits are held in an institution outside of the state in which the
government is located, insured amounts are further limited to a total of $250,000 for the combined
amount of all deposit accounts.
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs
are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
Page 5081
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
As of April 30, 2018, the City's investments were measured using the market value approach and the
valuation inputs as follows:
April 30, 2018
Investment Type Level 1 Level 2 Level 3 Total
Equity securities $ 4,054,686 $-$-$ 4,054,686
Mutual funds - bond funds 495,986 - - 495,986
Mutual funds - other than bond funds 1,335,326 --1,335,326
Total $ 5,885,998 $-$-$ 5,885,998
Private Purpose Trust
April 30, 2018
Investment Type Level 1 Level 2 Level 3 Total
Equity securities $ 309,579 $-$-$ 309,579
Mutual funds - bond funds 110,285 - - 110,285
Mutual funds - other than bond funds 193,441 --193,441
Total $ 613,305 $-$-$ 613,305
Police Pension Fund
April 30, 2018
Investment Type Level 1 Level 2 Level 3 Total
U.S. treasury obligations $ 9,015,857 $-$-$ 9,015,857
U.S. government agencies - 249,362 - 249,362
Mutual funds - other than bond funds 17,503,515 -- 17,503,515
Corporate bonds - 1,270,914 - 1,270,914
Real estate investment fund --3,421,996 3,421,996
Total $ 26,519,372 $ 1,520,276 $ 3,421,996 $ 31,461,644
Page 5182
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
Firefighter's Pension Fund
April 30, 2018
Investment Type Level 1 Level 2 Level 3 Total
U.S. treasury obligations $ 3,932,317 $-$-$ 3,932,317
U.S. government agencies - 2,651,110 - 2,651,110
Municipal bonds - 275,023 - 275,023
Corporate bonds - 5,894,924 - 5,894,924
Mutual funds - other than bond funds 22,539,955 --22,539,955
Total $ 26,472,272 $ 8,821,057 $-$ 35,293,329
Custodial Credit Risk
Deposits
Custodial credit risk for deposits is the risk that in the event of a financial institution failure, the City's
deposits may not be returned to the City. The City's investment policy requires that deposits that exceed
the amount insured by FDIC, NCUA, and/or SPIC insurance should be collateralized at the rate of 110%
of such deposits, by U.S. Government Securities, obligations of Federal instrumentalities, obligations of
the state of Illinois, or general obligation bonds of the City. The Cemetery Investment Fund and the
Pension Funds do not have a deposit policy for custodial credit risk.
The City does not have any deposits exposed to custodial credit risk.
Investments
Custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able
to recover the value of its investments or collateral securities that are in possession of an outside party.
The investment policies for the City, Cemetery, and Pension Funds require investment securities be held
by an authorized custodial bank pursuant to a written custodial agreement.
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 investment
policy limits the City's exposure to credit risk by limiting investments to the safest types as described
above.
Page 5283
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
Credit Risk (cont.)
The Cemetery and Pension Funds' general investment policy is to follow the prudent person rule subject
to specific restrictions of the Illinois Cemetery Care Act, the Illinois Pension Code, and the respective
Cemetery and Pension Fund's asset allocation policy. Under the prudent person rule, investments shall
be made with care, skill, prudence, and diligence under the prevailing circumstances that a prudent
person acting in similar capacity and familiar with such matters would use in the investment of a fund or
like character and with like aims.
The Cemetery and Police Pension Funds' investment policy further limits the investment in any one
company or issuer to 5% of the funds' total assets. The Cemetery fund also limits the investment in any
one equity industry group to no more than 15% of the Fund's assets.
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
As of April 30, 2018, the City's investments were rated as follows:
Investment Type Standard & Poors
Moody's Investors
Services
Illinois funds AAA Not rated
U.S. government agencies - implicitly
guaranteed AA+Aaa
Municipal bonds Not rated to AA Aa2 to Aaa
Corporate bonds BBB- to AAA Not rated to Aaa
Mutual funds - bond funds Not Rated to AAA N/A
Interest Rate Risk
Interest 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 maturity
of investments, it requires that the City and Cemetery Fund to minimize the interest rate risk by
structuring the investment portfolio so that securities mature to meet cash requirements for ongoing
operations, thereby avoiding the need to sell securities on the open market prior to maturity and by
investing operating funds primarily in short-term securities, money market mutual funds, or similar
investment pools.
The Police Pension Fund's investment policy does not limit the length of maturity of investments since it is
passively managing its fixed income exposure to the Barclays Capital Intermediate Government Index.
Although the Firefighters' Pension Fund's investment policy does not specifically limit the length of
maturity of investments, it manages interest rate risk by investing fixed income assets in proportion to the
present value of the Fund's projected liabilities.
Page 5384
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
Interest Rate Risk (cont.)
As of April 30, 2018, the City's investments were as follows:
Police Pension Fund
Maturity
Investment Type Fair Value
Less than one
year 1 - 5 years 6-10 years
U.S. treasury obligations $ 9,015,857 $ 104,311 $ 5,684,839 $ 3,226,707
U.S. government agencies 249,362 - 249,362 -
Corporate bonds 1,270,914 301,093 851,093 118,292
Totals $ 10,536,133 $ 405,404 $ 6,785,294 $ 3,344,999
Firefighters' Pension Fund
Maturity
Investment Type Fair Value
Less than one
year 1 - 5 years 6 - 10 years
More than 10
years
U.S. treasury obligation $ 3,932,317 $ 1,492,427 $ 1,098,348 $ 1,341,542 $-
U.S. government agencies 2,651,110 131,728 379,407 771,666 1,368,309
Municipal bonds 275,023 60,127 174,991 39,905 -
Corporate bonds 5,894,924 388,220 4,045,104 1,410,873 50,727
Totals $ 12,753,374 $ 2,072,502 $ 5,697,850 $ 3,563,986 $ 1,419,036
The City has $606,271 invested in mutual funds - bond funds that have a maturity of less than one year.
Money-Weighted Rate of Return
Police Pension Fund
For the year ended April 30, 2018, the annual money-weighted rate of return on the police pension plan
investments, net of pension plan investment expense, was 7.03%. The money-weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing amounts
actually invested.
Page 5485
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
Money-Weighted Rate of Return (cont.)
Firefighters' Pension Fund
For the year ended April 30, 2018, the annual money-weighted rate of return on the firefighters' pension
plan investments, net of pension plan investment expense, was 8.65%. The money-weighted rate of
return expresses investment performance, net of investment expense, adjusted for the changing amounts
actually invested.
See Note I.D.1. for further information on deposit and investment policies.
B. RECEIVABLES
All of the receivables on the balance sheet are expected to be collected within one year, with the
exception of the City's loans receivables. The City receives annual principal payments on the loans
through fiscal year 2020.
Page 5586
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
C. CAPITAL ASSETS
Capital asset activity for the year ended April 30, 2018, was as follows:
Beginning
Balance Additions Deletions
Ending
Balance
Governmental Activities
Capital assets not being depreciated
Land and land improvements $ 38,155,383 $ - $ 3,874 $ 38,151,509
Infrastructure - land 66,740,770 - - 66,740,770
Construction in progress 19,560 33,620 -53,180
Total Capital Assets Not Being
Depreciated 104,915,713 33,620 3,874 104,945,459
Capital assets being depreciated
Infrastructure 181,930,852 3,059,778 180,196 184,810,434
Buildings 30,002,059 -- 30,002,059
Improvements other than buildings 33,550,327 168,892 18,594 33,700,625
Machinery and equipment 17,662,552 922,765 1,025,388 17,559,929
Total Capital Assets Being
Depreciated 263,145,790 4,151,435 1,224,178 266,073,047
Total Capital Assets 368,061,503 4,185,055 1,228,052 371,018,506
Less: Accumulated depreciation for
Infrastructure (127,563,985)(2,494,345)(180,196)(129,878,134)
Buildings (11,030,681)(690,033)-(11,720,714)
Improvements other than buildings (15,324,782)(1,524,369)(18,594)(16,830,557)
Machinery and equipment (13,532,224)(1,098,036)(1,025,388)(13,604,872)
Total Accumulated Depreciation (167,451,672)(5,806,783)(1,224,178)(172,034,277)
Net Capital Assets Being
Depreciated 95,694,118 (1,655,348)-94,038,770
Total Governmental Activities
Capital Assets, Net of
Accumulated Depreciation $ 200,609,831 $ (1,621,728)$ 3,874 $ 198,984,229
Depreciation expense was charged to functions as follows:
Governmental Activities
General government $ 1,846,062
Highways and streets 2,647,100
Sanitation 155,367
Culture and recreation 984,767
Public safety 173,487
Total Governmental Activities Depreciation Expense $ 5,806,783
Page 5687
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
C. CAPITAL ASSETS (cont.)
Beginning
Balance Additions Deletions Ending Balance
Business-type Activities
Capital assets not being depreciated
Land $ 441,413 $ - $ - $ 441,413
Construction in progress 44,587 8,679,570 44,587 8,679,570
Total Capital Assets Not Being
Depreciated 486,000 8,679,570 44,587 9,120,983
Capital assets being depreciated
Buildings 27,021,790 -1,555 27,020,235
Improvements other than buildings 45,140,064 1,172,212 10,200 46,302,076
Machinery and equipment 4,922,573 456,827 133,084 5,246,316
Sanitary sewers and related property 30,337,241 441,500 -30,778,741
Total Capital Assets Being
Depreciated 107,421,668 2,070,539 144,839 109,347,368
Total Capital Assets 107,907,668 10,750,109 189,426 118,468,351
Less: Accumulated depreciation for
Buildings (14,600,398)(1,003,571)(1,555)(15,602,414)
Improvements other than buildings (21,780,424)(1,054,801)(9,404)(22,825,821)
Machinery and equipment (3,392,946)(274,043)(133,083)(3,533,906)
Sanitary sewers and related property (17,266,613)(572,390)-(17,839,003)
Total Accumulated Depreciation (57,040,381)(2,904,805)(144,042)(59,801,144)
Net Capital Assets Being
Depreciated 50,381,287 (834,266)797 49,546,224
Business-type Capital Assets,
Net of Accumulated
Depreciation $ 50,867,287 $ 7,845,304 $ 45,384 $ 58,667,207
Page 5788
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
C. CAPITAL ASSETS (cont.)
Beginning
Balance Additions Deletions
Ending
Balance
Component Unit - Lake Forest Library
Capital assets not being depreciated
Land $ 70,000 $ - $ - $ 70,000
Art 149,000 19,500 -168,500
Total Capital Assets Not Being
Depreciated 219,000 19,500 -238,500
Capital assets being depreciated
Buildings 1,180,907 -- 1,180,907
Improvements other than buildings 2,271,093 -- 2,271,093
Machinery and equipment 4,020,374 328,300 357,898 3,990,776
Total Capital Assets Being
Depreciated 7,472,374 328,300 357,898 7,442,776
Total Capital Assets 7,691,374 347,800 357,898 7,681,276
Less: Accumulated depreciation for
Buildings (700,842)(23,338)-(724,180)
Improvements other than buildings (1,278,512)(139,294)-(1,417,806)
Machinery and equipment (2,393,885)(378,502)(357,898)(2,414,489)
Total Accumulated Depreciation (4,373,239)(541,134)(357,898)(4,556,475)
Net Capital Assets Being
Depreciated 3,099,135 (212,834)-2,886,301
Total Component Unit
Capital Assets, Net of
Accumulated Depreciation $ 3,318,135 $ (193,334)$-$ 3,124,801
Page 5889
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
D. INTERFUND ADVANCES AND TRANSFERS
Interfund Receivables/Payables
The following is a schedule of interfund receivables and payables:
Receivable Fund Payable Fund Amount
Parks and Recreation Deerpath Golf Course $ 261,005
Total - Fund Financial Statements 261,005
Less: Interfund receivables created with internal service fund
eliminations (844,567)
Total Internal Balances - Government-Wide Statement of
Net Position $ (583,562)
All amounts are due within one year.
The principal purpose of these interfunds is for operating transactions between funds and will be paid
within the normal course of business.
Advances
The following is a schedule of interfund advances:
Receivable Fund Payable Fund Amount
Amount Not
Due Within One
Year
Laurel/Western Redevelopment
TIF Capital Improvements
$ 380,000 $ 380,000
Total - Fund Financial Statements 380,000
Less: Fund eliminations (380,000)
Total - Internal Balances - Government-Wide Statement of
Net Position $-
The principal purpose of the advance between the Laurel/Western Redevelopment TIF Fund and the
Capital Improvements Fund is to repay the Laurel/Western Redevelopment TIF Fund for a parcel of land
it owned that was sold during the fiscal year and the receipts were recorded within the Capital
Improvements Fund.
Page 5990
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
D. INTERFUND ADVANCES AND TRANSFERS (cont.)
Transfers
The following is a schedule of interfund transfers:
Fund Transferred To Fund Transferred From Amount Principal Purpose
Parks and Recreation General $ 308,500 Transfer for operations
Nonmajor Enterprise Parks and Recreation 462,000 Transfer for operations
Water and Sewer General 752,508 Transfer for operations
Nonmajor government General 228,853 Transfer for operations
Nonmajor government General 619,193 Transfer for debt service
Nonmajor government Nonmajor government 241,600 Transfer for debt service
Nonmajor government General 324,366 Transfer for capital outlay
Capital Improvement General 3,034,882 Transfer for capital outlay
Capital Improvement Debt Service 41,880 Transfer for capital outlay
Nonmajor enterprise General 661,238 Transfer for capital outlay
Golf Course Parks and Recreation 375,000 Transfer for capital outlay
Total - Fund Financial Statements 7,050,020
Less: Government-wide eliminations (4,799,274)
Plus: Capital contribution from Governmental
Activities to Business-type Activities 2,093,095
Total Transfers - Government-Wide Statement
of Activities $ 4,343,841
Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the
budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the
receipts to the debt service fund, and (3) use unrestricted revenues collected in the general fund to
finance various programs accounted for in other funds in accordance with budgetary authorizations.
Page 6091
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
E. LONG-TERM OBLIGATIONS
Long-term obligations activity for the year ended April 30, 2018, was as follows:
Beginning
Balance Increases Decreases
Ending
Balance
Amounts Due
Within One
Year
Governmental Activities
Bonds and Notes Payable
General obligation bonds $ 34,657,205 $ - $ 1,298,796 $ 33,358,409 $ 1,429,625
Notes payable 483,360 - 483,360 - -
Premiums 144,125 - 19,553 124,572 -
Discount (25,788)-(3,345)(22,443)-
Sub-totals 35,258,902 -1,798,364 33,460,538 1,429,625
Other Liabilities
Compensated absences 1,816,263 2,304,529 2,253,086 1,867,706 120,000
Other postemployment benefits 294,369 206,060 201,461 298,968 -
Net pension liability 50,959,279 3,652,009 11,870,403 42,740,885 -
Total Other Liabilities 53,069,911 6,162,598 14,324,950 44,907,559 120,000
Total Governmental
Activities Long-Term
Liabilities $ 88,328,813 $ 6,162,598 $ 16,123,314 $ 78,368,097 $ 1,549,625
Business-type Activities
Bonds Payable
General obligation bonds $ 13,619,000 $ 9,295,000 $ 1,952,000 $ 20,962,000 $ 1,987,000
Premium 118,111 71,875 40,122 149,864 -
Sub-totals 13,737,111 9,366,875 1,992,122 21,111,864 1,987,000
Other Liabilities
Compensated absences 197,443 246,109 213,961 229,591 5,000
Net pension liability 1,413,878 -1,266,280 147,598 -
Total Other Liabilities 1,611,321 246,109 1,480,241 377,189 5,000
Total Business-type
Activities Long-Term
Liabilities $ 15,348,432 $ 9,612,984 $ 3,472,363 $ 21,489,053 $ 1,992,000
Component Unit - Lake Forest
Library
Compensated absences $ 191,493 $ 165,782 $ 152,720 $ 204,555 $ 5,000
Capital leases 58,736 - 28,051 30,685 28,333
Other postemployment benefits 70,709 31,537 10,716 91,530 -
Net pension liability 1,320,867 -1,193,353 127,514 -
Total Other Liabilities 1,641,805 197,319 1,384,840 454,284 33,333
Total Component Unit
Long-Term Liabilities $ 1,641,805 $ 197,319 $ 1,384,840 $ 454,284 $ 33,333
General Obligation Bonds
All general obligation bonds payable are backed by the full faith and credit of the City. Bonds in the
governmental 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 revenues
are not sufficient, by future tax levies.
Page 6192
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
E. LONG-TERM OBLIGATIONS (cont.)
General Obligation Bonds (cont.)
On June 5, 2017, the City issued general obligation bonds in the amount of $9,295,000 with an interest
range of 2.00% - 3.50%. This amount will be used for the purpose of financing certain capital
improvements to the City's water treatment plant.
Governmental Activities
General Obligation Bonds
Date of
Issue
Final
Maturity
Interest
Rates
Original
Indebtedness
Balance
April 30, 2018
Special Service Area 25 5/1/2003 12/15/2022 1.95-2.95% $ 1,050,000 $ 350,000
Special Service Area 26 10/7/2003 12/15/2022 2.50-3.40% 276,500 94,478
Special Service Area 29 12/20/2004 12/15/2023 2.55-3.65% 2,000,000 805,931
2009 Series 5/14/2009 12/15/2028 2.00-4.10% 3,680,000 2,500,000
2010 Series B 5/12/2010 12/15/2032 5.75% 3,000,000 3,000,000
2010 Series C 5/12/2010 12/15/2029 3.00-5.50% 5,425,000 4,720,000
2011 Series B 9/6/2011 12/15/2023 1.00-3.00% 4,470,000 2,908,000
2013 Series 9/16/2013 12/15/2032 2.00-4.00% 9,715,000 9,435,000
2015 Series 8/3/2015 12/15/2036 2.50-3.75% 9,780,000
9,545,000
Total Governmental Activities - General Obligation Bonds $ 33,358,409
Business-type Activities
General Obligation Bonds
Date of
Issue
Final
Maturity
Interest
Rates
Original
Indebtedness
Balance
April 30, 2018
2011 Series A 9/6/2011 12/15/2020 1.50-3.00% $ 1,195,000 $ 400,000
2011 Series B 9/6/2011 12/15/2023 1.00-3.00% 20,355,000 11,267,000
2017 Series 6/5/2017 12/15/2037 2.00-3.50% 9,295,000
9,295,000
Total Business-type Activities - General Obligation Bonds $ 20,962,000
Page 6293
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE 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 Activities Business-type Activities
General Obligation Bonds General Obligation Bonds
Years Principal Interest Principal Interest
2019 $ 1,429,625 $ 1,242,488 $ 1,987,000 $ 580,023
2020 1,730,850 1,202,720 2,067,000 530,673
2021 2,037,502 1,154,978 2,132,000 478,349
2022 2,119,613 1,093,130 2,037,000 425,398
2023 2,182,208 1,024,470 2,097,000 374,473
2024-2028 8,568,611 4,109,937 4,037,000 1,275,098
2029-2033 12,740,000 2,136,030 3,055,000 864,628
2034-2038 2,550,000 164,850 3,550,000 368,900
Totals $ 33,358,409 $ 12,128,603 $ 20,962,000 $ 4,897,542
Other Debt Information
Estimated payments of compensated absences, other post employment benefits, and net pension liability
are not included in the debt service requirement schedules. Compensated absences and the IMRF net
pension liability will be liquidated by the applicable governmental funds (primarily the General, Parks and
Recreation, Senior Commission, and Cemetery Funds) that account for the salaries and wages for the
related employees. Other post employment benefits and the Police and Firefighters' net pension liability
will be liquidated by the General Fund.
F. LEASE DISCLOSURES
Lessee - Capital Leases
In 2017 the Library acquired capital assets through a lease/purchase agreement. The gross amount of
these assets under capital leases is $84,225, which are included in capital assets in the discretely
presented component unit activities. The future minimum lease obligations and the net present value on
these minimum lease payments as of April 30, 2018, are as follows:
Component Unit
Years Principal Interest Totals
2019 $ 28,333 $ 177 $ 28,510
2020 2,352 2 2,354
Totals $ 30,685 $ 179 $ 30,864
Page 6394
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
G. FUND BALANCES
Governmental Funds
Governmental fund balances reported on the fund financial statements at April 30, 2018, include the
following:
General Fund
Parks and
Recreation
Fund
Capital
Improvements
Fund
Nonmajor
Governmental
Funds Totals
Fund Balances
Nonspendable:
Prepaid items $ 86,011 $ - $ - $ 28,688 $ 114,699
Inventories 64,027 ---64,027
Sub-total 150,038 --28,688 178,726
Restricted for:
Culture and
recreation - 2,031,479 - 1,139,426 3,170,905
Highway and streets --- 513,285 513,285
Public safety - fire --- 181,450 181,450
Public safety - police --- 433,720 433,720
Cemetery perpetual
care - - - 6,945,742 6,945,742
Affordable housing --- 1,417,922 1,417,922
Capital projects -- 5,938,047 683,921 6,621,968
Debt service ---1,521,887 1,521,887
Sub-total -2,031,479 5,938,047 12,837,353 20,806,879
Unassigned:29,130,844 ---29,130,844
Total Fund
Balances $ 29,280,882 $ 2,031,479 $ 5,938,047 $ 12,866,041 $ 50,116,449
Page 6495
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE IV - OTHER INFORMATION
A.EMPLOYEES' RETIREMENT SYSTEM
The City contributes to three defined benefit pension plans, the Illinois Municipal Retirement Fund
(IMRF), an agent-multiple-employer public employee retirement system; the Police Pension Plan which is
a single-employer pension plan; and the Firefighters' Pension Plan which is a single-employer pension
plan. The benefits, benefits levels, employee contributions and employer contributions for the plans are
governed by Illinois Compiled Statutes and can only be amended by the Illinois General Assembly. The
Police Pension Plan and the Firefighters' Pension Plan do not issue separate reports on the pension
plans. IMRF does issue a publicly available report that includes financial statements and supplementary
information for the plan as a whole, but not for individual employers. That report can be obtained from
IMRF, 2211 York Road, Suite 500, Oak Brook, Illinois 60523.
Illinois Municipal Retirement Fund
Plan 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 as
participating members. IMRF has a two tier plan. Members who first participated in IMRF or an Illinois
Reciprocal 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 at
age 55 (at reduced benefits) or after age 60 (at full benefits) with 8 years of service are entitled to an
annual retirement benefit, payable monthly for life in 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 3% for each year thereafter to a maximum of 75% of their final rate of
earnings.
Employees hired on or after January 1, 2011, are eligible for Tier 2 benefits. For Tier 2 participants,
pension benefits vest after 10 years of service. Participating members who retire at age 62 (at reduced
benefits) or after age 67 (at full benefits) with 10 years of service are entitled to an annual retirement
benefit, payable monthly for life in an amount equal to 1-2/3% of their final rate of earnings for the first 15
years of service credit, plus 2% for each year of service after 15 years to a maximum of 75% of their final
rate of earnings. Final rate of earnings is the highest total earnings during any 96 consecutive months
within the last 10 years of service, divided by 96. Under Tier 2, the pension is increased every year after
retirement, upon reaching age 67, by the lesser of 3% of the original pension amount or 1/2 of the
increase in the Consumer Price Index of the original pension amount.
Under the employer number within IMRF, both the City and Library contribute to the plan. As a result,
IMRF is considered to be an agent multiple-employer plan through which cost-sharing occurs between
the City and Library.
Plan membership. At December 31, 2017, the measurement date, membership in the plan was as
follows:
Retirees and beneficiaries 268
Inactive, non-retired members 175
Active members 190
Total 633
Page 6596
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Contributions. As set by statute, City and Library employees participating in IMRF are required to
contribute 4.50% of their annual covered salary. The statute requires the City and Library to contribute
the amount necessary, in addition to member contributions, to finance the retirement coverage of its own
employees. The City and Library’s actuarially determined contribution rate for calendar year 2017 was
12.57% of annual covered payroll for IMRF. The City and Library also contribute for disability benefits,
death benefits and supplemental retirement benefits, all of which are pooled at the IMRF level.
Contribution rates for disability and death benefits are set by the IMRF Board of Trustees, while the
supplemental retirement benefits rate is set by statute.
Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of December 31, 2017,
and the total pension liability used to calculate the net pension liability/(asset) was determined by an
actuarial valuation as of that date.
Summary of Significant Accounting Policies. For purposes of measuring the net pension
liability/(asset), deferred outflows of resources and deferred inflows of resources related to pensions, and
pension expense, information about the fiduciary net position of IMRF and additions to/deductions from
IMRF fiduciary net position have been determined on the same basis as they are reported by IMRF. For
this purpose, benefit payments (including refunds of employee contributions) are recognized when due
and payable in accordance with the benefit terms. Investments are reported at fair value.
Actuarial Assumptions. The total pension liability for IMRF was determined by actuarial valuations
performed as of December 31, 2017 using the following actuarial methods and assumptions:
Actuarial cost method Entry Age Normal
Asset valuation method Market Value
Actuarial assumptions
Investment Rate of Return 7.50%
Inflation 3.50%
Salary increases 3.75% to 14.50%,
including inflation
Price inflation 2.75%
Mortality. For non-disabled retirees, an IMRF specific mortality table was used with fully generational
projection scale MP-2014 (base year 2012). The IMRF specific rates were developed from the RP-2014
Blue Collar Health Annuitant Mortality Table with adjustments to match current IMRF experience. For
disabled 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 Retirees
Mortality Table applying the same adjustment that were applied for non-disabled lives. For active
members, an IMRF specific mortality table was used with fully generational projection scale MP-2014
(base year 2012). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table
with adjustments to match current IMRF experience.
Page 6697
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Long-Term Expected Real Rate of Return. The long-term expected rate of return on pension plan
investments was determined using an asset allocation study in which best-estimate ranges of expected
future real rates of return (net of pension plan investment expense and inflation) were developed for each
major asset class. These ranges were combined to produce long-term expected rate of return by the
target asset allocation percentage and by adding expected inflation. The target allocation and best
estimates of arithmetic and geometric real rates of return for each major asset class are summarized in
the following table:
Projected Returns/Risks
Asset Class
Target
Allocation
One Year
Arithmetic
Ten Year
Geometric
Equities 37.00%8.30%6.85%
International equities 18.00%8.45%6.75%
Fixed income 28.00%3.05%3.00%
Real estate 9.00%6.90%5.75%
Alternatives 7.00%
Private equity 12.45%7.35%
Hedge funds 5.35%5.05%
Commodities 4.25%2.65%
Cash equivalents 1.00%2.25%2.25%
Discount rate. The discount rate used to measure the total pension liability for IMRF was 7.50%. The
discount rate calculated using the December 31, 2016 measurement date was 7.50%. The projection of
cash flows used to determine the discount rate assumed that member contributions will be made at the
current contribution rate and that City contributions will be made at rates equal to the difference between
actuarially determined contribution rate and the member rate. Based on those assumptions, the fiduciary
net position was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return on investments was applied to all periods of
projected benefits to determine the total pension liability.
Page 6798
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Discount rate sensitivity. The following is a sensitivity analysis of the net pension liability/(asset) to
changes in the discount rate. The table below presents net pension liability/(asset) of the City calculated
using the discount rate of 7.50% as well as what the net pension liability/(asset) would be if it were to be
calculated using a discount rate that is 1 percentage point lower (6.50%) or 1 percentage point higher
(8.50%) than the current rate:
1% Decrease
Current
Discount Rate 1% Increase
City:
Total pension liability $ 100,757,256 $ 90,081,074 $ 81,257,583
Plan fiduciary net pension 89,012,730 89,012,730 89,012,730
Net pension liability/(asset)$ 11,744,526 $ 1,068,344 $ (7,755,147)
Library:
Total pension liability $ 13,301,567 $ 11,892,140 $ 10,727,298
Plan fiduciary net pension 11,764,626 11,764,626 11,764,626
Net pension liability/(asset)$ 1,536,941 $ 127,514 $ (1,037,328)
Total:
Total pension liability $ 114,058,823 $ 101,973,214 $ 91,984,881
Plan fiduciary net pension 100,777,356 100,777,356 100,777,356
Net pension liability/(asset)$ 13,281,467 $ 1,195,858 $ (8,792,475)
Changes in net pension liability/(asset). The changes in net pension liability/(asset) for the calendar
year ended December 31, 2017 were as follows:
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/(Asset)
(a) - (b)
City:
Balances at December 31, 2016 $ 89,528,501 $ 78,725,947 $ 10,802,554
Service cost 1,230,871 - 1,230,871
Interest on total pension liability 6,690,906 - 6,690,906
Differences between expected and actual
experience of the total pension liability
79,717 - 79,717
Change of assumptions (2,740,693)-(2,740,693)
Benefit payments, including refunds of
employee contributions
(4,708,228)(4,708,228)-
Contributions - employer - 1,485,109 (1,485,109)
Contributions - employee - 532,665 (532,665)
Net investment income - 14,307,003 (14,307,003)
Other (net transfer)-(1,329,766)1,329,766
Balances at December 31, 2017 $ 90,081,074 $ 89,012,730 $ 1,068,344
Page 6899
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/(Asset)
(a) - (b)
Library:
Balances at December 31, 2016 $ 11,857,696 $ 10,536,829 $ 1,320,867
Service cost 146,913 - 146,913
Interest on total pension liability 767,094 - 767,094
Differences between expected and actual
experience of the total pension liability
9,515 - 9,515
Change of assumptions (327,120)-(327,120)
Benefit payments, including refunds of
employee contributions
(561,958)(561,958)-
Contributions - employer - 177,258 (177,258)
Contributions - employee -63,577 (63,577)
Net investment income - 1,707,636 (1,707,636)
Other (net transfer)-(158,716)158,716
Balances at December 31, 2017 $ 11,892,140 $ 11,764,626 $ 127,514
Total:
Balances at December 31, 2016 $ 101,386,197 $ 89,262,776 $ 12,123,421
Service cost 1,377,784 - 1,377,784
Interest on total pension liability 7,458,000 - 7,458,000
Differences between expected and actual
experience of the total pension liability
89,232 -89,232
Change of assumptions (3,067,813)-(3,067,813)
Benefit payments, including refunds of
employee contributions
(5,270,186)(5,270,186)-
Contributions - employer - 1,662,367 (1,662,367)
Contributions - employee - 596,242 (596,242)
Net investment income - 16,014,639 (16,014,639)
Other (net transfer)-(1,488,482)1,488,482
Balances at December 31, 2017 $ 101,973,214 $ 100,777,356 $ 1,195,858
Plan fiduciary net position as a percentage of
the total pension liability %98.83
Page 69100
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Pension expense and deferred outflows of resources and deferred inflows of resources related
to pensions. For the year ended April 30, 2018, the City recognized pension expense of $2,304,146.
The City reported deferred outflows and inflows of resources related to pension from the following
sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
City:
Difference between expected and actual experience $ 113,696 $ 257,375
Assumption changes 7,451 2,014,559
Net difference between projected and actual earnings on pension
plan investments - 3,781,816
Contributions subsequent to the measurement date 510,820 -
Total $ 631,967 $ 6,053,750
Library:
Difference between expected and actual experience $ 13,570 $ 30,719
Assumption changes 889 240,451
Net difference between projected and actual earnings on pension
plan investments - 451,385
Contributions subsequent to the measurement date 67,668 -
Total $ 82,127 $ 722,555
Total:
Difference between expected and actual experience $ 127,266 $ 288,094
Assumption changes 8,340 2,255,010
Net difference between projected and actual earnings on pension
plan investments - 4,233,201
Contributions subsequent to the measurement date 578,488 -
Total $ 714,094 $ 6,776,305
Page 70101
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
The amount reported as deferred outflows resulting from contributions subsequent to the measurement
date in the above table will be recognized as a reduction in the net pension liability/(asset) for the year
ending April 30, 2019. The remaining amounts reported as deferred outflows and inflows of resources
related to pensions ($(6,640,699)) will be recognized in pension expense as follows:
Year Ending December 31,City Library Total
2019 $(1,113,620)$(132,918)$(1,246,538)
2020 (1,191,336)(142,194)(1,333,530)
2021 (1,932,267)(230,629)(2,162,896)
2022 (1,695,380)(202,355)(1,897,735)
Total $ (5,932,603)$ (708,096)$ (6,640,699)
Police Pension
Plan description. Police sworn personnel are covered by the Police Pension Plan, which is a defined
benefit single-employer pension plan. Although this is a single employer pension plan, the defined
benefits and employee and employer contribution levels are governed by Illinois State Statutes (Chapter
40 ILCS 5/3) and may be amended only by the Illinois legislature. The City accounts for the plan as a
pension trust fund.
As provided for in the Illinois Compiled Statutes, the Plan provides retirement benefits as well as death
and 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
Pension Fund 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
are entitled to receive an annual retirement benefit of one half of the salary attached to the rank on the
last day of service, or for one year prior to the last day, whichever is greater. The pension shall be
increased by 2.5% of such salary for each additional year of service over 20 years up to 30 years to a
maximum of 75% of such salary. Employees with at least 8 years but less than 20 years of credited
service may retire at or after age 60 and receive a reduced retirement benefit. The monthly pension of a
police officer who retired with 20 or more years of service after January 1, 1977 shall be increased
annually, following the first anniversary date of retirement and paid upon reaching at least the age 55, by
3% of the original pension and 3% compounded annually thereafter.
Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service
are entitled to receive a monthly pension of 2.5% of the final average salary for each year of creditable
service. 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
50 and receive a reduced retirement benefit. The monthly pension of a police officer shall be increased
annually on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of
the pension start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase in the CPI, whichever is less.
Page 71102
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Police Pension (cont.)
Plan membership. At April 30, 2018, the Police Pension membership consisted of:
Retirees and beneficiaries 40
Inactive, non-retired members 10
Active members 38
Total 88
Contributions. Covered employees are required to contribute 9.91% of their base salary to the Police
Pension Plan. If an employee leaves covered employment with less than 20 years of service,
accumulated employee contributions may be refunded without accumulated interest. The City is required
to contribute the remaining amounts necessary to finance the plans as actuarially determined by an
enrolled actuary. Effective January 1, 2011 the City’s contributions must accumulate to the point where
the past service cost for the Police Pension Plan is 90% funded by the year 2040. The City's actuarially
determined contribution rate for the fiscal year ending April 30, 2018 was 55.10% of annual covered
payroll.
Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of April 30, 2018, and
the total pension liability used to calculate the net pension liability/(asset) was determined by an annual
actuarial valuation as of that date.
Summary of Significant Accounting Policies. The financial statements of the Police Pension Plan are
prepared using the accrual basis of accounting. Plan member contributions are recognized in the period
in which contributions are due. The City’s contributions are recognized when due and a formal
commitment to provide the contributions are made. Benefits and refunds are recognized when due and
payable in accordance with the terms of the plan.
Plan investments are reported at fair value. Short-term investments are reported at cost, which
approximated fair value. Investments that do not have an established market are reported at estimated
fair values.
Page 72103
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Police Pension (cont.)
Actuarial Assumptions. The total pension liability was determined by an actuarial valuation performed
as of April 30, 2018 using the following actuarial methods and assumptions:
Actuarial cost method Entry Age Normal
Asset valuation method Market Value
Actuarial assumptions
Interest rate 7.00%
Inflation 2.50%
Projected salary increases Service Based
Cost-of-living adjustments Tier 1: 3.00% Tier 2: 1.25%
Mortality rates were based on the RP-2000 Combined Healthy Mortality Table. The actuarial
assumptions were based on the results of an actuarial experience study conducted by the Illinois
Department of Insurance dated September 26, 2012.
Discount rate. The discount rate used to measure the total pension liability for the Police Pension Plan
was 7.00%, the same as the prior valuation. The projection of cash flows used to determine the
discount rate assumed that member contributions will be made at the current contribution rate and that
City contributions will be made at rates equal to the difference between actuarially determined
contribution rates and the member rate. Based on those assumptions, the Plan’s fiduciary net position
was 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 of
projected benefit payments to determine the total pension liability.
Discount rate sensitivity. The following is a sensitivity analysis of the net pension liability to changes
in the discount rate. The table below presents the pension liability of the City calculated using the
discount rate of 7.00% as well as what the net pension liability would be if it were to be calculated using
a discount rate that is 1 percentage point lower (6.00%) or 1 percentage point higher (8.00%) than the
current rate:
1% Decrease
Current
Discount Rate 1% Increase
Total pension liability $ 66,363,732 $ 58,400,246 $ 51,850,749
Plan fiduciary net position 31,650,935 31,650,935 31,650,935
Net pension liability $ 34,712,797 $ 26,749,311 $ 20,199,814
Page 73104
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE 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
calendar year ended April 30, 2018 was as follows:
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/Asset
(a) - (b)
Balances at April 30, 2017 $ 56,248,128 $ 29,758,448 $ 26,489,680
Service cost 895,320 - 895,320
Interest on total pension liability 3,908,626 - 3,908,626
Differences between expected and actual
experience of the total pension liability (39,964)-(39,964)
Benefit payments, including refunds of employee
contributions (2,611,864)(2,611,864)-
Contributions - employer - 2,094,124 (2,094,124)
Contributions - employee - 379,500 (379,500)
Net investment income - 2,064,885 (2,064,885)
Administration -(34,158)34,158
Balances at April 30, 2018 $ 58,400,246 $ 31,650,935 $ 26,749,311
Pension expense and deferred outflows of resources and deferred inflows of resources related
to pensions. For the year ended April 30, 2018, the City recognized pension expense of $2,669,760.
The City reported deferred outflows and inflows of resources related to pension from the following
sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between expected and actual experience $ 183,618 $ 1,096,492
Assumption changes 749,258 -
Net difference between projected and actual earnings on pension
plan investments 539,651 -
Total $ 1,472,527 $ 1,096,492
Page 74105
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE 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 ($376,035) will
be recognized in pension expense as follows:
Year Ending April 30,Amount
2019 $ 288,210
2020 288,210
2021 (194,826)
2022 (5,559)
Total $ 376,035
Firefighters' Pension
Plan description. Fire sworn personnel are covered by the Firefighters' Pension Plan, which is a defined
benefit single-employer pension plan. Although this is a single employer pension plan, the defined
benefits and employee and employer contribution levels are governed by Illinois State Statutes (Chapter
40 ILCS 5/3) and may be amended only by the Illinois legislature. The City accounts for the plan as a
pension trust fund.
As provided for in the Illinois Compiled Statutes, the Firefighters' Pension Plan provides retirement
benefits as well as death and 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 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
are entitled to receive a monthly retirement benefit of one half of the monthly salary attached to the rank
held in 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 a maximum of 75% of such monthly salary. Employees with at least 10 years but less than 20
years of credited service may retire at or after age 60 and receive a reduced retirement benefit. The
monthly pension of a firefighter who retired with 20 or more years of service after January 1, 1977 shall
be increased annually, following the first anniversary date of retirement and paid upon reaching at least
the age 55, by 3% of the original pension and 3% compounded annually thereafter.
Tier 2 - Covered employees attaining the age of 55 or more with 10 or more years of creditable service
are entitled to receive a monthly pension of 2.5% of the final average salary for each year of creditable
service. 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
50 and receive a reduced retirement benefit. The monthly pension of a firefighter shall be increased
annually on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of
the pension start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the
annual unadjusted percentage increase in the CPI, whichever is less.
Page 75106
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Firefighters' Pension (cont.)
Plan membership. At April 30, 2018, the Firefighters' Pension Plan membership consisted of:
Retirees and beneficiaries 39
Inactive, non-retired members 3
Active members 33
Total 75
Contributions. Participants contribute a fixed percentage of their base salary to the plans. At April 30,
2018, the contribution percentage was 9.455%. If a participant leaves covered employment with less than
20 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 actuarially
determined by an enrolled actuary. Effective January 1, 2011 the City’s contributions must accumulate to
the 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, 2018 was 40.41% of
annual covered payroll.
Net pension liability/(asset). The net pension liability/(asset) was measured as of April 30, 2018, and
the total pension liability used to calculate the net pension liability/(asset) was determined by an annual
actuarial valuation as of that date.
Summary of significant accounting policies. The financial statements of the Firefighters' Pension Plan
are prepared using the accrual basis of accounting. Plan member contributions are recognized in the
period in which contributions are due. The City’s contributions are recognized when due and a formal
commitment to provide the contributions are made. Benefits and refunds are recognized when due and
payable in accordance with the terms of the plan.
Plan investments are reported at fair value. Short-term investments are reported at cost, which
approximated fair value. Investments that do not have an established market are reported at estimated
fair values.
Page 76107
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE 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
as of April 30, 2018 using the following actuarial methods and assumptions:
Actuarial cost method Entry Age
Asset valuation method 5-year average Market Value
Actuarial assumptions
Interest 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. The actuarial
assumptions were based on the results of an actuarial experience study conducted by the Illinois
Department of Insurance dated September 26, 2012.
Discount rate. The discount rate used to measure the total pension liability for the Firefighters' Pension
Plan was 7.00%, the same as the prior valuation. The projection of cash flows used to determine the
discount rate assumed that member contributions will be made at the current contribution rate and that
City contributions will be made at rates equal to the difference between actuarially determined
contribution rates and the member rate. Based on those assumptions, the Plan’s fiduciary net position
was 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 of
projected benefit payments to determine the total pension liability.
Discount rate sensitivity. The following is a sensitivity analysis of the net pension liability to changes
in the discount rate. The table below presents the pension liability of the City calculated using the
discount rate of 7.00% as well as what the net pension liability would be if it were to be calculated using
a discount rate that is 1 percentage point lower (6.00%) or 1 percentage point higher (8.00%) than the
current rate:
1% Decrease
Current
Discount Rate 1% Increase
Total pension liability $ 58,335,393 $ 51,327,313 $ 45,577,983
Plan fiduciary net position 36,256,485 36,256,485 36,256,485
Net pension liability $ 22,078,908 $ 15,070,828 $ 9,321,498
Page 77108
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Firefighters' Pension (cont.)
Changes in net pension liability/(asset). The City's changes in net pension liability/(asset) for the
calendar year ended April 30, 2018 was as follows:
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/Asset
(a) - (b)
Balances at April 30, 2017 $ 49,290,987 $ 34,210,064 $ 15,080,923
Service cost 854,245 - 854,245
Interest on total pension liability 3,425,477 - 3,425,477
Differences between expected and actual
experience of the total pension liability 176,286 - 176,286
Benefit payments, including refunds of employee
contributions (2,419,682)(2,419,682)-
Contributions - employer - 1,308,348 (1,308,348)
Contributions - employee - 296,202 (296,202)
Net investment income - 2,897,100 (2,897,100)
Administration -(35,547)35,547
Balances at April 30, 2018 $ 51,327,313 $ 36,256,485 $ 15,070,828
Pension expense and deferred outflows of resources and deferred inflows of resources related
to pensions. For the year ended April 30, 2018, the City recognized pension expense of $2,078,485.
The City reported deferred outflows and inflows of resources related to pension from the following
sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between expected and actual experience $ 298,725 $ 93,237
Assumption changes 934,065 -
Net difference between projected and actual earnings on pension
plan investments -73,042
Total $ 1,232,790 $ 166,279
Page 78109
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Firefighters' Pension (cont.)
The amounts reported as deferred outflows and inflows of resources related to pensions ($1,066,511)
will be recognized in pension expense as follows:
Year Ending April 30,Amount
2019 $ 424,348
2020 424,348
2021 (5,985)
2022 194,419
2023 29,381
Total $ 1,066,511
PENSION SEGMENT INFORMATION
Fiduciary Net Position
Pension Trust
Police
Pension
Firefighters'
Pension Total
Assets
Cash $ 52,313 $ 846,096 $ 898,409
Money markets 76,883 - 76,883
Investments
U.S. treasury obligations 9,015,857 3,932,317 12,948,174
U.S. government agencies 249,362 2,651,110 2,900,472
Municipal/corporate bonds 1,270,914 6,169,947 7,440,861
Mutual funds 17,503,515 22,539,955 40,043,470
Real estate investment fund 3,421,996 - 3,421,996
Prepaids - 9,840 9,840
Interest receivable 56,575 94,271 150,846
Due from primary government 26,675 16,988 43,663
Total Assets 31,674,090 36,260,524 67,934,614
Liabilities
Accounts payable 23,155 4,039 27,194
Total Liabilities 23,155 4,039 27,194
Net Position
Restricted for pensions $ 31,650,935 $ 36,256,485 $ 67,907,420
Page 79110
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Changes in Plan Net Position
Pension Trust
Police Pension
Firefighters'
Pension Total
Additions
Contributions
Employer $ 2,094,125 $ 1,308,348 $ 3,402,473
Employee 379,500 296,202 675,702
Miscellaneous 50 -50
Total Contributions 2,473,675 1,604,550 4,078,225
Investment Income
Interest 539,854 798,715 1,338,569
Net appreciation in fair value of investments 1,605,296 2,159,527 3,764,823
Total Investment income 2,145,150 2,958,242 5,103,392
Less investment expense 109,734 91,948 201,682
Net investment income 2,035,416 2,866,294 4,901,710
Total Additions 4,509,091 4,470,844 8,979,935
Deductions
Pension benefits and refunds 2,611,864 2,419,683 5,031,547
Other administrative expenses 4,740 4,740 9,480
Total Deductions 2,616,604 2,424,423 5,041,027
Change in net position 1,892,487 2,046,421 3,938,908
Net position, beginning of year 29,758,448 34,210,064 63,968,512
Net position, end of year $ 31,650,935 $ 36,256,485 $ 67,907,420
B. 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 in
the Liability Insurance Fund through payments to the Intergovernmental Risk Management Agency.
Page 80111
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE IV - OTHER INFORMATION (cont.)
B. RISK MANAGEMENT (cont.)
Public Entity Risk Pool
IRMA
The City participates in the Intergovernmental Risk Management Agency (IRMA). IRMA is an
organization of municipalities and special districts in Northeastern Illinois that have formed an association
under the Illinois Intergovernmental Co-operations Statute to pool their risk management needs. The
agency administers a mix of self-insurance and commercial insurance coverages; property/casualty and
workers’ compensation claim administration/litigation management services; unemployment claim
administration; extensive risk management/loss control consulting and training programs; and a risk
information system and financial reporting service for its members.
The City’s payments to IRMA are displayed on the financial statements as expenditures/expenses in
appropriate funds. The City assumes the first $25,000 of each occurrence, and IRMA has a mix of self-
insurance and commercial insurance at various amounts above that level.
Each member appoints one delegate, along with an alternate delegate, to represent the member on the
Board of Directors. The City does not exercise any control over the activities of IRMA beyond its
representation on the Board of Directors.
Initial contributions are determined each year based on the individual member’s eligible revenue as
defined in the bylaws of IRMA and experience modification factors based on past member loss
experience. Members have a contractual obligation to fund any deficit of IRMA attributable to any
membership year during which they were a member. Supplemental contributions may be required to fund
these deficits.
Beginning of Claims and End of
Fiscal Year Changes in Claim Fiscal Year
Liability Estimates Payments Liability
2016-2017 $ 155,664 $ 301,093 $ 318,724 $ 138,033
2017-2018 138,033 139,722 183,202 94,553
City of Lake Forest Medical and Dental Plan
The City established the City of Lake Forest Medical and Dental Plan, a self-insurance plan providing
health insurance for all employees of the City, effective January 1, 2000. Administration of the Plan is
provided by Professional Benefit Administrators, Inc. (an outside agency). Liabilities are reported when it
is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. An
excess coverage insurance policy covers total claims in excess of $100,000 per participant in a plan year.
Liabilities include all amounts for claims, including incremental costs that have been incurred but not
reported (IBNR) and are reported in the Self Insurance Fund (internal service fund). The City has not had
significant reductions in insurance coverage in any of the last three years.
Page 81112
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE 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, 2018 and 2017 are as follows:
Beginning of End of
Fiscal Year Changes in Claim Fiscal Year
Liability Estimates Payments Liability
2016-2017 $ 580,817 $ 4,749,766 $ 4,589,080 $ 741,503
2017-2018 741,503 4,326,092 4,472,225 595,370
The City has also purchased insurance from private insurance companies. For insured programs, there
have been no significant reductions in insurance coverage. For all programs, settlement amounts have
not exceeded insurance coverage for the current or three prior years.
C. JOINT VENTURES
Solid Waste Agency of Lake County
The City of Lake Forest, the Great Lakes Naval Training Center, Lake County, and 41 other municipalities
jointly operate the Solid Waste Agency of Lake County, (the Agency). The purpose of the Agency is to
implement a regional approach to solid waste management which addresses the economic, political, and
environmental issues in Lake County.
The Agency is governed by a Board of Directors consisting of one official elected by each member. Each
director has one vote. The governing body has authority to adopt its own budget and control the financial
affairs of the the Agency. The Executive Committee of the Agency consists of nine members of the Board
of Directors elected by the Board. Each member is entitled to one vote on the committee. The Executive
Committee may take any action not specifically reserved on the Board of Directors by the Act, the Agency
agreement, or the by-laws.
The City does not have an equity interest in the Agency.
To obtain the Agency's financial statements, contract the Solid Waste Agency of Lake County, Illinois, at
1311 N. Estes Street, Gurnee, Illinois 60031.
Page 82113
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE IV - OTHER INFORMATION (cont.)
C. JOINT VENTURES (cont.)
Northern Suburban Special Recreation Association
The City is a member of the Northern Suburban Special Recreation Association (NSSRA), which was
organized by ten organizations in order to provide special recreation programs to the physically and
mentally handicapped within their districts and to share the expenses of such programs on a cooperative
basis. Each member's 1999 contribution was determined based upon the ratio of the members' assessed
valuations.
The NSSRA is governed by a Board of Directors which consists of one representative from each
participating organization. Each Director has an equal vote. The representatives of NSSRA are appointed
by the Board of Directors. The Board of Directors is the governing body of the NSSRA and is responsible
for establishing all major policies and changes therein and for approving all budgets, capital outlay,
programming, and master plans.
The City does not have an equity interest in NSSRA although there does exist a residual interest in
NSSRA's assets upon dissolution of the joint venture. The City has an ongoing financial responsibility for
its share of the NSSRA's liabilities. Each participant is liable for their share of any of the NSSRA contracts
entered into while bound by the intergovernmental agreement until those contracts are paid off.
To obtain NSSRA's financial statements, contact Northern Suburban Special Recreation Association at
3105 MacArthur Blvd., Northbrook, Illinois 60062.
D. COMMITMENTS AND CONTINGENCIES
The City has outstanding construction contracts with contractors totaling $3,038,082 at April 30, 2018.
Work that has been completed on these projects but not yet paid for (including contract retainages) is
reflected as accounts payable and expenditures.
E. OTHER POSTEMPLOYMENT BENEFITS
Plan Description
In 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 and dental plan benefits offered are referred to as the "Plan." The Plan offers several medical
and dental insurance benefits options to eligible retirees and their dependents. The benefits, benefit
levels, employee contributions and employer contributions are governed by the City Council and can only
be amended by the City Council. The Plan is not accounted for as a trust fund and an irrevocable trust
has not been established. The City does not issue a Plan financial report.
Page 83114
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE IV - OTHER INFORMATION (cont.)
E. OTHER POSTEMPLOYMENT BENEFITS (cont.)
Funding Policy
The contribution requirements of plan members and the City are established and may be amended by the
City Council and are detailed in the various plan benefit booklets provided to employees. The required
contribution is based on projected pay-as-you-go financing requirements. For fiscal year 2018 the City
contributed $212,177, representing current premiums.
The City’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the
annual required contribution of the employer (ARC) The ARC represents a level of funding that, if paid on
an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the
components of the City’s annual OPEB cost for the year, the amount actually contributed to plan, and
changes in the City’s net OPEB obligation to the Retiree Health Plan:
City Library
Annual required contribution $ 204,097 $ 31,066
Interest on net OPEB obligation 11,775 2,828
Adjustment to annual required contribution (9,812)(2,357)
Annual OPEB cost 206,060 31,537
Contributions made (201,461)(10,716)
Increase in net OPEB obligation 4,599 20,821
Net OPEB Obligation - Beginning of Year 294,369 70,709
Net OPEB Obligation - End of Year $ 298,968 $ 91,530
Page 84115
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE 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 net
OPEB obligation were as follows:
Fiscal Year Ended
Annual OPEB
Cost
Percentage of
Annual OPEB
Cost
Contributed
Net OPEB
Obligation
City:
April 30, 2016 $ 233,865 76.46% $ 284,538
April 30, 2017 198,144 95.04%294,369
April 30, 2018 206,060 97.77%298,968
Library:
April 30, 2016 $ 24,039 26.55% $ 48,771
April 30, 2017 30,196 27.35%70,709
April 30, 2018 31,537 33.98%91,530
The funded status of the plan as of April 30, 2017, the most recent actuarial valuation date, was as
follows:
City Library
Actuarial accrued liability (AAL)$ 3,736,584 $ 286,873
Actuarial value of plan assets --
Unfunded Actuarial Accrued Liability (UAAL)$ 3,736,584 $ 286,873
Funded ratio (actuarial value of plan assets/AAL)-%-%
Covered payroll (active plan members)$ 21,743,897 $ 1,778,891
UAAL as a percentage of covered payroll 17.18%16.13%
The projection of future benefit payments for an ongoing plan involves estimates for the value of reported
amounts and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment, mortality, and the healthcare cost trend. Amounts
determined regarding the funded status of the plan and annual required contributions of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates are
made about the future. The schedule of funding progress, presented as required supplementary
information following the notes to the financial statements, presents multiyear trend information that
shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits.
Page 85116
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE IV - OTHER INFORMATION (cont.)
E. OTHER POSTEMPLOYMENT BENEFITS (cont.)
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and the historical pattern of sharing benefit costs between the employer and plan
members to 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-term perspective of the calculations.
In the April 30, 2017, actuarial valuation, the entry age actuarial cost method was used. The actuarial
assumptions included a 4.0 percent investment rate of return (net of administrative expenses), which is a
blended rate of the expected long-term investment returns on plan assets and on the employer's own
investments calculated based on the funded level of the plan at the valuation date, and an annual
healthcare cost trend rate of 8.5 percent initially, reduced by decrements to an ultimate rate of 5.5 percent
ultimately. Both rates included a 3.0 percent inflation assumption. The actuarial value of assets were
determined using market value. The UAAL is being amortized as a level percentage of projected payroll
on an open basis. The remaining amortization period at April 30, 2017 was 30 years.
F. LAUREL AND WESTERN TAX INCREMENT FINANCING (TIF) DISTRICT
The City approved the Laurel and Western TIF in January 2015. The TIF district is comprised of 10.6
acres. The City acquired the single parcel not previously owned by the City and prepared the site for a
mix of housing options. Demolition of the seven structures was completed in preparation for the
development of the site. The City entered into a Property Purchase Agreement with Focus Acquisition
Company LLC for the sale and redevelopment of all the developable land within the district. Following
environmental remediation and site preparation required by the City, as well as the completion of
contingency and inspection periods under the agreement, the sale of the property was closed in
September 2016. The purchase price of the City property was $12 million, consisting of $5.625 million
paid to the City at closing and a TIF Note of $6.375 million executed between the City and the developer.
The TIF Note was subsequently assigned by the developer to the City to allow repayment of the note
from future TIF increment. As of April 30, 2018, the City has not received any TIF increment and
anticipates the TIF increment to begin with the 2017 levy year, collected in 2018 (City’s FY2019).
Because the TIF Note does not meet the definition of an asset pursuant to GASB Concept Statement 4
as of the financial statement date, the Note receivable has not been reported on the City’s financial
statements. Revenue will be recognized as payments on the TIF Note are made. No payments on the
TIF Note have been made as of April 30, 2018.
A redevelopment agreement between the City and developer was also executed in September 2016. As
of April 30, 2018, the City has received the development fees of $2,368,712 (FY17), as well as a payment
in lieu of affordable housing in the amount of $650,000 (FY18). Construction is in progress, with the
apartments available for lease beginning in January 2018. As of April 30, 2018, eight (8) condominiums
and three (3) single family homes have been sold. The development plan calls for a mix of housing
consisting of 12 single family homes, 42 condominium units and 111 apartments.
Page 86117
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2018
NOTE 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. 75, Accounting and Financial Reporting for Postemployment Benefits Other
Than Pensions
Statement No. 80, Blending Requirements for Certain Component Units - an Amendment of
GASB Statement No. 14
Statement No. 81, Irrevocable Split-Interest Agreements
Statement No. 83, Certain Asset Retirement Obligations
Statement No. 84, Fiduciary Activities
Statement No. 85, Omnibus 2017
Statement No. 86, Certain Debt Extinguishment Issues
Statement No. 87, Leases
Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowing and
Direct Placements
Statement No. 89, Accounting for Interest Cost Incurred Before the End of a Construction
Period
Statement No. 90, Majority Equity Interests an amendment of GASB Statements No. 14
and No. 61
When they become effective, application of these standards may restate portions of these financial
statements.
Page 87118
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 N
119
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Taxes
Property $ 18,263,327 $ 18,263,327 $ 18,186,629 $(76,698)
Other taxes 3,103,112 3,103,112 3,115,606 12,494
Intergovernmental 6,116,002 6,116,002 5,781,763 (334,239)
Licenses and permits 2,660,085 2,660,085 3,232,276 572,191
Fines, forfeitures and penalties 206,500 206,500 345,438 138,938
Charges for services 3,017,546 3,017,546 3,568,354 550,808
Grants and contributions -- 18,950 18,950
Investment income 210,874 210,874 486,609 275,735
Miscellaneous 980,672 980,672 1,110,893 130,221
Total Revenues 34,558,118 34,558,118 35,846,518 1,288,400
EXPENDITURES
Current
General government 11,482,289 11,572,965 9,851,906 1,721,059
Highways and streets 2,410,776 2,535,571 2,354,587 180,984
Sanitation 2,322,544 2,322,544 2,290,986 31,558
Public safety 15,670,488 15,726,240 15,181,216 545,024
Capital Outlay 484,000 484,000 51,489 432,511
Debt Service
Contingency 3,743,194 3,743,194 - 3,743,194
Principal retirement --483,360 (483,360)
Total Expenditures 36,113,291 36,384,514 30,213,544 6,170,970
Excess (deficiency) of revenues over
(under) expenditures (1,555,173)(1,826,396)5,632,974 7,459,370
OTHER FINANCING SOURCES
(USES)
Transfers out (4,758,960)(4,758,960)(5,929,540)(1,170,580)
Total Other Financing Sources
(Uses)(4,758,960)(4,758,960)(5,929,540)(1,170,580)
Net Change in Fund Balance $ (6,314,133)$ (6,585,356)(296,566)$ 6,288,790
FUND BALANCE - Beginning of Year 29,577,448
FUND BALANCE - END OF YEAR $ 29,280,882
See independent auditors' report and accompanying notes to required supplementary information.
Page 88120
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - PARKS AND RECREATION FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Property taxes $ 5,544,463 $ 5,544,463 $ 5,517,237 $(27,226)
Intergovernmental 40,000 40,000 42,607 2,607
Charges for services 3,241,649 3,241,649 2,675,688 (565,961)
Grants and contributions 221,500 221,500 266,629 45,129
Investment income 27,858 27,858 63,656 35,798
Miscellaneous 29,000 29,000 5,165 (23,835)
Total Revenues 9,104,470 9,104,470 8,570,982 (533,488)
EXPENDITURES
Current
Culture and recreation 8,619,854 8,625,210 8,295,942 329,268
Capital Outlay 591,050 652,817 492,996 159,821
Contingency 997,803 997,803 -997,803
Total Expenditures 10,208,707 10,275,830 8,788,938 1,486,892
Excess (deficiency) of revenues over
(under) expenditures (1,104,237)(1,171,360)(217,956)953,404
OTHER FINANCING SOURCES
(USES)
Proceeds from capital asset sales --1,485 1,485
Transfers in 305,000 305,000 308,500 3,500
Transfers out (550,000)(550,000)(837,000)(287,000)
Total Other Financing Sources
(Uses)(245,000)(245,000)(527,015)(282,015)
Net Change in Fund Balance $ (1,349,237)$ (1,416,360)(744,971)$ 671,389
FUND BALANCE - Beginning of Year 2,776,450
FUND BALANCE - END OF YEAR $ 2,031,479
See independent auditors' report and accompanying notes to required supplementary information.
Page 89121
CITY OF LAKE FOREST
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY
AND RELATED RATIOS
For the past three fiscal years
City Library Total
Total pension liability
Service cost 1,549,831$ 208,143$ 1,757,974$
Interest on total pension liability 7,086,670 951,742 8,038,412
Differences between expected and
actual expereince of the total pension liability 796,382 106,954 903,336
Changes of assumptions 103,436 13,891 117,327
Transfer of liability (13,798,877) (1,853,193) (15,652,070)
Benefit payments, including refunds of member
contributions (4,968,065) (667,212) (5,635,277)
Net change in total pension liability (9,230,623) (1,239,675) (10,470,298)
Total pension liability - beginning 96,324,203 12,936,367 109,260,570
Total pension liability - ending (a)87,093,580$ 11,696,692$ 98,790,272$
Plan fiduciary net position
Employer contributions 1,757,095$ 235,978$ 1,993,073$
Employee contributions 664,444 89,235 753,679
Net investment income 442,808 59,469 502,277
Benefit payments, including refunds of member
contribtuions (4,968,065) (667,212) (5,635,277)
Other (net transfer) (12,005,830) (1,612,386) (13,618,216)
Net change in plan fiduciary net position (14,109,548) (1,894,916) (16,004,464)
Plan fiduciary net position - beginning 89,834,842 12,064,844 101,899,686
Plan fiduciary net position - ending (b)75,725,294$ 10,169,928$ 85,895,222$
Employer's net pension liability - ending (a) - (b)11,368,286$ 1,526,764$ 12,895,050$
Plan fiduciary net position as a percentage of
the total pension liability 86.95%
Covered-employee payroll 13,391,112$
Employer's net pension liability as a percentage
of covered-employee payroll 96.30%
Notes to Schedule:
2016
The City implemented GASB Statement No. 68 in fiscal year 2016. Information prior to fiscal year 2016 is not
available.
See independent auditors' report and accompanying notes to required supplementary information Page 90
122
City Library Total City Library Total
1,315,386$ 160,837$ 1,476,223$ 1,230,871$ 146,913$ 1,377,784$
6,584,652 668,406 7,253,058 6,690,906 767,094 7,458,000
(689,342) (84,288) (773,630) 79,717 9,515 89,232
(209,390) (25,603) (234,993) (2,740,693) (327,120) (3,067,813)
- - - - - -
(4,566,385) (558,348) (5,124,733) (4,708,228) (561,958) (5,270,186)
2,434,921 161,004 2,595,925 552,573 34,444 587,017
87,093,580 11,696,692 98,790,272 89,528,501 11,857,696 101,386,197
89,528,501$ 11,857,696$ 101,386,197$ 90,081,074$ 11,892,140$ 101,973,214$
1,494,964$ 182,795$ 1,677,759$ 1,485,109$ 177,258$ 1,662,367$
558,977 68,348 627,325 532,665 63,577 596,242
5,250,256 641,968 5,892,224 14,307,003 1,707,636 16,014,639
(4,566,385) (558,348) (5,124,733) (4,708,228) (561,958) (5,270,186)
262,841 32,138 294,979 (1,329,766) (158,716) (1,488,482)
3,000,653 366,901 3,367,554 10,286,783 1,227,797 11,514,580
75,725,294 10,169,928 85,895,222 78,725,947 10,536,829 89,262,776
78,725,947$ 10,536,829$ 89,262,776$ 89,012,730$ 11,764,626$ 100,777,356$
10,802,554$ 1,320,867$ 12,123,421$ 1,068,344$ 127,514$ 1,195,858$
88.04% 98.83%
13,135,941$ 13,224,884$
92.29% 9.04%
2017 2018
See independent auditors' report and accompanying notes to required supplementary information Page 91
123
CITY OF LAKE FOREST
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
For the past three fiscal years
City Library Total
Actuarially determined contribution 1,741,632$ 233,902$ 1,975,534$
Contributions in relation to the actuarially
determined contribution (1,757,095) (235,978) (1,993,073)
Contribution deficiency (excess)(15,463)$ (2,076)$ (17,539)$
Covered-employee payroll 13,391,112$
Contributions as a percentage of covered-
employee payroll 14.88%
Notes to Schedule:
Valuation date:
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation 3.00%
Salary increases
Investment rate of return 7.50%
Retirement Age
Mortality RP-2000 CHBCA
Other information:
There were no benefit changes during the year.
2016
4.40% to 16.00% including inflation
Experience-based table of rates that are specific to the type of
eligibility condition
Actuarially determined contribution rates are calculated as of December 31 of the year prior to the fiscal year in
which contributions are reported. Information is obtained from IMRF. More recent information is not available.
The City implemented GASB Statement No. 68 in fiscal year 2016. Information prior to fiscal year 2016 is not
available.
Entry age normal
Level percentage of payroll, closed
28 years
5-Year Smoothed Market
See independent auditors' report and accompanying notes to required supplementary information Page 92
124
City Library Total City Library Total
1,454,901$ 177,896$ 1,632,797$ 1,447,303$ 172,745$ 1,620,048$
(1,494,964) (182,795) (1,677,759) (1,485,109) (177,258) (1,662,367)
(40,063)$ (4,899)$ (44,962)$ (37,806)$ (4,513)$ (42,319)$
13,135,941$ 13,247,776$
12.77% 12.55%
20182017
See independent auditors' report and accompanying notes to required supplementary information Page 93
125
2015 2016 2017 2018
Total pension liability
Service cost 845,979$ 883,178$ 931,083$ 895,320$
Interest on total pension liability 3,219,893 3,657,765 3,660,514 3,908,626
Differences between expected and
actual experience of the total pension liability 2,713 (2,129,040) 306,030 (39,964)
Changes of assumptions 3,568,719 - 1,248,764 -
Benefit payments, including refunds of member contributions (2,193,705) (2,320,588) (2,520,473) (2,611,864)
Other (16,057) - - -
Net change in total pension liability 5,427,542 91,315 3,625,918 2,152,118
Total pension liability - beginning 47,103,353 52,530,895 52,622,210 56,248,128
Total pension liability - ending (a)52,530,895$ 52,622,210$ 56,248,128$ 58,400,246$
Plan fiduciary net position
Employer contributions 1,706,203$ 1,806,270$ 1,895,500$ 2,094,124$
Employee contributions 360,156 373,216 371,695 379,500
Net investment income 1,669,508 (475,655) 2,635,379 2,064,885
Benefit payments, including refunds of member contributions (2,193,705) (2,320,588) (2,520,473) (2,611,864)
Administrative expenses (4,150) (4,835) (27,816) (34,158)
Net change in plan fiduciary net position 1,538,012 (621,592) 2,354,285 1,892,487
Plan fiduciary net position - beginning 26,487,743 28,025,755 27,404,163 29,758,448
Plan fiduciary net position - ending (b)28,025,755$ 27,404,163$ 29,758,448$ 31,650,935$
City's net pension liability - ending (a) - (b)24,505,140$ 25,218,047$ 26,489,680$ 26,749,311$
Plan fiduciary net position as a percentage of the total
pension liability 53.35% 52.08% 52.91% 54.20%
Covered-employee payroll 3,590,934$ 3,759,611$ 3,750,706$ 3,800,841$
City's net pension liability as a percentage of covered-
employee payroll 682.42% 670.76% 706.26% 703.77%
Notes to Schedule:
The Pension implemented GASB Statement No. 67 in fiscal year 2015. Information prior to fiscal year 2015 is not available.
-The healthy mortality table was updated from the RP-2000 Combined Healthy table with a blue collar adjustment to the RP
2000 Combined Healthy table with a blue collar adjustment, projected to the valuation date with Scale BB.
-The salary increase assumption was changed to better reflect our expectation of plan experience.
-The disabled mortality table was updated from the RP-2000 Disabled table to the RP-2000 Disabled table, projected to the
valuation date with Scale BB.
Changes of assumptions. For Fiscal Year 2015, the mortality, disability, turnover and retirement assumptions were revised to
reflect the most recent study conducted by the Illinois Department of Insurance.
CITY OF LAKE FOREST
POLICE PENSION FUND
SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY AND RELATED RATIOS
Last Four Fiscal Years
For measurement date April 30, 2018, amounts reported as changes of assumptions resulted from the following changes:
See independent auditors' report and notes to required supplementary information. Page 94
126
CITY OF LAKE FOREST
POLICE PENSION FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Last Ten Fiscal Years
2009 2010 2011 2012
Actuarially determined contribution 1,025,521$ 1,128,050$ 1,405,652$ 1,372,431$
Contributions in relation to the actuarially
determined contribution 1,038,121 1,128,592 1,412,730 1,515,074
Contribution deficiency (excess)(12,600)$ (542)$ (7,078)$ (142,643)$
Covered-employee payroll 3,162,441$ 3,283,760$ 3,322,493$ 3,359,679$
Contributions as a percentage of covered-
employee payroll 32.83%34.37%42.52%45.10%
Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
The Pension implemented GASB Statement No. 67 in fiscal year 2015. Information prior to fiscal year 2015 is derived from
actuarial valuations developed in conformity with GASB Statement No. 25 and 27.
Mortality rates were based on the RP-2000 Mortality
Table
Entry-age normal
Level percentage of payroll, closed
26 years (as of 05/01/2015 valuation); 23 years (as of
05/01/2016 valuation)
Investment gains and losses are smoothed over a 5-
5.50%
50-70
2.50%
7.00%, net of pension plan investment expense
Valuation date: Actuarially determined contributions are calculated as of May 1, two years prior to the year in which contributions
are reported.
See independent auditors' report and notes to required supplementary information.Page 95
127
2013 2014 2015 2016 2017 2018
1,375,906$ 1,384,307$ 1,508,450$ 1,810,315$ 1,737,445$ 1,832,059$
1,502,075 1,563,964 1,706,203 1,806,270 1,895,500 2,094,124
(126,169)$ (179,657)$ (197,753)$ 4,045$ (158,055)$ (262,065)$
3,170,518$ 3,518,797$ 3,590,934$ 3,759,611$ 3,750,706$ 3,800,841$
47.38% 44.45% 47.51% 48.04% 50.54% 55.10%
See independent auditors' report and notes to required supplementary information.Page 96
128
2015 2016 2017 2018
Annual money-weighted rate of return,
net of investment expense 6.79% -1.44% 9.67% 7.03%
Notes to Schedule:
The Pension implemented GASB Statement No. 67 in fiscal year 2015. Information prior to fiscal year 2015 is not available.
CITY OF LAKE FOREST
POLICE PENSION FUND
SCHEDULE OF INVESTMENT RETURNS
Last Four Fiscal Years
See independent auditors' report and notes to required supplementary information.Page 97
129
CITY OF LAKE FOREST
FIREFIGHTERS' PENSION FUND
SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY AND RELATED RATIOS
Last Four Fiscal Years
2015 2016 2017 2018
Total pension liability
Service cost 912,154$ 926,420$ 860,148$ 854,245$
Interest on total pension liability 2,754,242 3,072,945 3,190,325 3,425,477
Differences between expected and actual experience
actual experience of the total pension liability (213,530) (186,474) 227,730 176,286
Changes of assumptions 2,024,054 - 1,401,097 -
Benefit payments, including refunds of member contributions (1,769,849) (1,931,047) (2,208,471) (2,419,682)
Net change in total pension liability 3,707,071 1,881,844 3,470,829 2,036,326
Total pension liability - beginning 40,231,243 43,938,314 45,820,158 49,290,987
Total pension liability - ending (a)43,938,314$ 45,820,158$ 49,290,987$ 51,327,313$
Plan fiduciary net position
Employer contributions 1,168,287$ 1,216,585$ 1,211,587$ 1,308,348$
Employee contributions 296,676 297,946 290,383 296,202
Net investment income 1,871,817 60,335 3,053,497 2,897,100
Miscellaneous revenue - 100 - -
Benefit payments, including refunds of member contributions (1,769,849) (1,931,047) (2,208,471) (2,419,682)
Administrative expenses (4,150) (4,835) (34,006) (35,547)
Net change in plan fiduciary net position 1,562,781 (360,916) 2,312,990 2,046,421
Plan fiduciary net position - beginning 30,695,209 32,257,990 31,897,074 34,210,064
Plan fiduciary net position - ending (b)32,257,990$ 31,897,074$ 34,210,064$ 36,256,485$
City's net pension liability - ending (a) - (b)11,680,324$ 13,923,084$ 15,080,923$ 15,070,828$
Plan fiduciary net position as a percentage of the total
pension liability 73.42%69.61%69.40%70.64%
Covered-employee payroll 3,111,216$ 2,924,893$ 3,071,211$ 3,237,410$
City's net pension liability as a percentage of covered-
employee payroll 375.43% 476.02%491.04%465.52%
Notes to Schedule:
The Pension implemented GASB Statement No. 67 in fiscal year 2015. Information prior to fiscal year 2015 is not available.
-The healthy mortality table was updated from the RP-2000 Combined Healthy table with a blue collar adjustment to the RP-
2000 Combined Healthy table with a blue collar adjustment, projected to the valuation date with Scale BB.
-The disabled mortality table was updated from the RP-2000 Disabled table to the RP-2000 Disabled table, projected to the
valuation date with Scale BB.
-The salary increase assumption was changed to better reflect our expectation of plan experience.
Changes of assumptions. For Fiscal Year 2015, the mortality, disability, turnover and retirement assumptions were revised to
reflect the most recent study conducted by the Illinois Department of Insurance.
For measurement date April 30, 2018, amounts reported as changes of assumptions resulted from the following changes:
See independent auditors' report and notes to required supplementary information.Page 98
130
CITY OF LAKE FOREST
FIREFIGHTERS' PENSION FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Last Ten Fiscal Years
2009 2010 2011 2012
Actuarially determined contribution 662,323$ 761,978$ 954,946$ 862,452$
Contributions in relation to the actuarially
determined contribution 701,472 810,129 960,850 983,298
Contribution deficiency (excess)(39,149)$ (48,151)$ (5,904)$ (120,846)$
Covered-employee payroll 2,855,889$ 2,926,591$ 2,644,320$ 2,941,767$
Contributions as a percentage of covered-
employee payroll 24.56%27.68%36.34%33.43%
Notes to Schedule:
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Salary increases
Investment rate of return
Retirement age
Mortality
Entry-age normal
The Pension implemented GASB Statement No. 67 in fiscal year 2015. Information prior to fiscal year 2015 is derived from actuarial
valuations developed in conformity with GASB Statement No. 25 and 27.
50-70
Mortality rates were based on the RP-2000 Mortality Table
Level percentage of payroll, closed
5-year average market value
5.50%
7.00%, net of pension plan investment expense
Valuation date: Actuarially determined contributions are calculated as of May 1, two years prior to the year in which contributions
are reported.
19 years (as of 05/01/2015 valuation) and 23 years (as of the 05/01/2016
valuation)
See independent auditors' report and notes to required supplementary information.Page 99
131
2013 2014 2015 2016 2017 2018
894,551$ 894,384$ 950,325$ 1,217,702$ 1,137,826$ 1,298,188$
1,026,345 1,090,695 1,168,287 1,216,585 1,211,587 1,308,348
(131,794)$ (196,311)$ (217,962)$ 1,117$ (73,761)$ (10,160)$
3,049,732$ 3,004,889$ 3,111,216$ 2,924,893$ 3,071,211$ 3,237,410$
33.65% 36.30% 37.55% 41.59% 39.45% 40.41%
See independent auditors' report and notes to required supplementary information.Page 100
132
CITY OF LAKE FOREST
FIREFIGHTERS' PENSION FUND
SCHEDULE OF INVESTMENT RETURNS
Last Four Fiscal Years
2015 2016 2017 2018
Annual money-weighted rate of return,
net of investment expense 6.48% 0.26% 9.66% 8.65%
Notes to Schedule:
The Pension implemented GASB Statement No. 67 in fiscal year 2015. Information prior to fiscal year 2015 is not
available.
See independent auditors' report and notes to required supplementary information. Page 101
133
CITY OF LAKE FOREST
OTHER POSTEMPLOYMENT BENEFITS PLAN
SCHEDULE OF EMPLOYER CONTRIBUTIONS AND SCHEDULE OF FUNDING PROGRESS
For the Year Ended April 30, 2018
Schedule of Annual Required Contributions - City
Year Ended
Annual
Required
Contribution
Percentage
Contributed
04/30/18 $ 204,097 98.7 %
04/30/17 196,247 96.0 %
04/30/16 232,335 77.0 %
04/30/15 223,399 87.9 %
04/30/14 145,288 101.2 %
04/30/13 94,954 66.9 %
Schedule of Annual Required Contributions - Library
Year Ended
Annual
Required
Contribution
Percentage
Contributed
04/30/18 $ 31,066 34.5 %
04/30/17 29,871 27.6 %
04/30/16 23,831 26.8 %
04/30/15 22,915 17.8 %
04/30/14 3,786 0.0 %
04/30/13 2,727 0.0 %
Schedule of Funding Progress - City
Actuarial
Valuation
Date
Actuarial Value
of Assets
(a)
Actuarial
Accrued
Liability (AAL) -
Entry Age
(b)
Unfunded AAL
(UAAL) (b-a)
Funded
Ratio (a/b)
Covered Payroll
(c)
UAAL as a
Percentage of
Covered
Payroll
((b-a)/c)
04/30/17 $- $ 3,736,584 $ 3,736,584 0% $ 21,743,897 17.18%
04/30/15 - 3,786,380 3,786,380 0% 18,087,734 20.93%
04/30/13 - 2,363,491 2,363,491 0% 16,930,261 13.96%
Schedule of Funding Progress - Library
Actuarial
Valuation
Date
Actuarial Value
of Assets
(a)
Actuarial
Accrued
Liability (AAL) -
Entry Age
(b)
Unfunded AAL
(UAAL) (b-a)
Funded
Ratio (a/b)
Covered Payroll
(c)
UAAL as a
Percentage of
Covered
Payroll
((b-a)/c)
04/30/17 $- $ 286,873 $ 286,873 0% $ 1,778,891 16.13%
04/30/15 - 272,766 272,766 0% 1,288,196 21.17%
04/30/13 -34,113 34,113 0% 1,306,979 2.61%
See independent auditors' report and accompanying notes to required supplementary information.
Page 102134
CITY OF LAKE FOREST
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended April 30, 2018
BUDGETARY INFORMATION
Budgets for the General and major special revenue fund are adopted on a basis of accounting consistent
with accounting principles generally accepted in the United States of America (GAAP).
See independent auditors' report.
Page 103135
S U P P L E M E N T A R Y I N F O R M A T I O N
136
Nonmajor Special Revenue Funds
Police Restricted 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 Fund
Debt Service Fund –This fund accounts for the principal and interest currently due on general obligation
bonds.
Nonmajor Capital Projects Funds
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 Fund
Capital Improvements Fund –This fund accounts for revenues to be used to fund city building and
infrastructure projects.
137
CITY OF LAKE FOREST
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
As of April 30, 2018
Special Revenue Funds
Police Restricted
Foreign Fire
Insurance Tax
Emergency
Telephone
Parks and Public
Land Motor Fuel Tax
ASSETS
Cash and cash equivalents $ 129,362 $ 2,107 $ (109,268) $ 1,017,532 $ 468,930
Investments -179,343 ---
Receivables (net)
Property taxes -----
Other 1,260 -414,066 -1,344
Due from other governments ----44,355
Advances to other funds -----
Due from fiduciary funds -----
Prepaid items --28,689 --
TOTAL ASSETS $ 130,622 $ 181,450 $ 333,487 $ 1,017,532 $ 514,629
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND
BALANCES
Liabilities
Accounts payable $- $- $ 1,701 $ 49,700 $-
Accrued liabilities -----
Deposits -----
Total Liabilities --1,701 49,700 -
Deferred Inflows of Resources
Property taxes levied for a
future period - - - - -
Unavailable revenues ----1,344
Total Deferred Inflows of
Resources ----1,344
Fund Balances
Nonspendable for prepaid
items - - 28,688 - -
Restricted for culture and
recreation - - - 967,832 -
Restricted for highways and
streets - - - - 513,285
Restricted for public safety 130,622 181,450 303,098 - -
Restricted for cemetery
perpetual care - - - - -
Restricted for affordable
housing - - - - -
Restricted for capital projects - - - - -
Restricted for debt service
purposes -----
Total Fund Balances 130,622 181,450 331,786 967,832 513,285
TOTAL LIABILITIES,
DEFERRED
INFLOWS OF
RESOURCES,
AND FUND
BALANCES $ 130,622 $ 181,450 $ 333,487 $ 1,017,532 $ 514,629
Page 104138
Special Revenue Funds
Debt Service
Funds
Capital Projects
Fund
General
Cemetery
Senior Resources
Commission Housing Trust Debt Service
Laurel/Western
Redevelopment
TIF Improvements
Total Nonmajor
Governmental
Funds
$ 906,875 $ 168,369 $ 1,435,922 $ 1,521,887 $ 303,921 $ 5,845,637
5,885,997 - - - - 6,065,340
- - - 1,752,718 - 1,752,718
93,400 23,607 - - - 533,677
- - - - - 44,355
- - - - 380,000 380,000
87,136 - - - - 87,136
-----28,689
$ 6,973,408 $ 191,976 $ 1,435,922 $ 3,274,605 $ 683,921 $ 14,737,552
$ 15,488 $ 9,234 $- $- $- $ 76,123
12,178 11,148 ---23,326
--18,000 --18,000
27,666 20,382 18,000 --117,449
--- 1,752,718 - 1,752,718
-----1,344
---1,752,718 -1,754,062
-----28,688
-171,594 --- 1,139,426
-----513,285
-----615,170
6,945,742 ---- 6,945,742
-- 1,417,922 -- 1,417,922
----683,921 683,921
---1,521,887 -1,521,887
6,945,742 171,594 1,417,922 1,521,887 683,921 12,866,041
$ 6,973,408 $ 191,976 $ 1,435,922 $ 3,274,605 $ 683,921 $ 14,737,552
Page 105139
CITY OF LAKE FOREST
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended April 30, 2018
Special Revenue Funds
Police
Restricted
Foreign Fire
Insurance Tax
Emergency
Telephone
Parks and
Public Land Motor Fuel Tax
REVENUES
Taxes:
Property $-$-$-$-$-
Other -----
Intergovernmental 12,111 --- 494,702
Charges for services 20,500 121,143 315,145 652,122 -
Grants and contributions -----
Investment income 1,991 2,003 2,835 13,077 9,738
Miscellaneous -----
Total Revenues 34,602 123,146 317,980 665,199 504,440
EXPENDITURES
Current
General government -----
Culture and recreation -----
Public safety - 121,114 218,449 --
Capital Outlay 38,759 - 11,997 386,939 1,293,961
Debt Service
Principal retirement -----
Interest and fiscal charges -----
Total Expenditures 38,759 121,114 230,446 386,939 1,293,961
Excess (deficiency) of revenues
over expenditures (4,157)2,032 87,534 278,260 (789,521)
OTHER FINANCING SOURCES
(USES)
Transfers in --- 324,366 -
Transfers out -----
Total Other Financing
Sources (Uses)---324,366 -
Net Change in Fund
Balances (4,157)2,032 87,534 602,626 (789,521)
FUND BALANCES - Beginning of
Year 134,779 179,418 244,252 365,206 1,302,806
FUND BALANCES - END
OF YEAR $ 130,622 $ 181,450 $ 331,786 $ 967,832 $ 513,285
Page 106140
Special Revenue Funds
Debt Service
Funds
Capital Projects
Fund
General
Cemetery
Senior
Resources
Commission Housing Trust
Debt Service
Improvements
Laurel/Western
Redevelopment
TIF
Improvements
Total Nonmajor
Governmental
Funds
$- $- $- $ 1,661,850 $- $ 1,661,850
-- 24,000 -- 24,000
-----506,813
615,378 139,125 --- 1,863,413
89,450 195,840 - 152,012 - 437,302
821,340 3,442 18,043 30,432 17,046 919,947
240 600 650,000 --650,840
1,526,408 339,007 692,043 1,844,294 17,046 6,064,165
571,540 --3,750 12,205 587,495
- 557,605 --- 557,605
-----339,563
273,800 --- 866,590 2,872,046
--- 1,298,796 - 1,298,796
---1,277,596 -1,277,596
845,340 557,605 -2,580,142 878,795 6,933,101
681,068 (218,598)692,043 (735,848)(861,749)(868,936)
- 228,853 - 860,793 - 1,414,012
---(41,880)(241,600)(283,480)
-228,853 -818,913 (241,600)1,130,532
681,068 10,255 692,043 83,065 (1,103,349)261,596
6,264,674 161,339 725,879 1,438,822 1,787,270 12,604,445
$ 6,945,742 $ 171,594 $ 1,417,922 $ 1,521,887 $ 683,921 $ 12,866,041
Page 107141
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - POLICE RESTRICTED FUND - NONMAJOR SPECIAL
REVENUE FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ 8,500 $ 8,500 $ 12,111 $ 3,611
Charges for services 21,100 21,100 20,500 (600)
Fines, forfeitures and penalties 2,100 2,100 -(2,100)
Investment income 515 515 1,991 1,476
Total Revenues 32,215 32,215 34,602 2,387
EXPENDITURES
Capital Outlay 125,000 125,000 38,759 86,241
Contingency 12,500 12,500 -12,500
Total Expenditures 137,500 137,500 38,759 98,741
Net Change in Fund Balance $ (105,285)$ (105,285)(4,157)$ 101,128
FUND BALANCE - Beginning of Year 134,779
FUND BALANCE - END OF YEAR $ 130,622
Page 108142
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - FOREIGN FIRE INSURANCE TAX FUND - NONMAJOR
SPECIAL REVENUE FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Charges for services $ 100,000 $ 100,000 $ 121,143 $ 21,143
Investment income --2,003 2,003
Total Revenues 100,000 100,000 123,146 23,146
EXPENDITURES
Current
Public safety 185,000 185,000 121,114 63,886
Total Expenditures 185,000 185,000 121,114 63,886
Net Change in Fund Balance $ (85,000)$ (85,000)2,032 $ 87,032
FUND BALANCE - Beginning of Year 179,418
FUND BALANCE - END OF YEAR $ 181,450
Page 109143
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - EMERGENCY TELEPHONE FUND - NONMAJOR SPECIAL
REVENUE FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Charges for services $ 245,000 $ 245,000 $ 315,145 $ 70,145
Investment income 900 900 2,835 1,935
Total Revenues 245,900 245,900 317,980 72,080
EXPENDITURES
Current
Public safety 219,800 225,410 218,449 6,961
Capital Outlay 11,997 11,997 11,997 -
Contingency 23,741 23,741 -23,741
Total Expenditures 255,538 261,148 230,446 30,702
Net Change in Fund Balance $ (9,638)$ (15,248)87,534 $ 102,782
FUND BALANCE - Beginning of Year 244,252
FUND BALANCE - END OF YEAR $ 331,786
Page 110144
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - PARKS AND PUBLIC LAND FUND - NONMAJOR SPECIAL
REVENUE FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Charges for services $ 62,672 $ 62,672 $ 652,122 $ 589,450
Investment income 2,739 2,739 13,077 10,338
Total Revenues 65,411 65,411 665,199 599,788
EXPENDITURES
Capital Outlay 445,000 445,000 386,939 58,061
Contingency 44,500 44,500 -44,500
Total Expenditures 489,500 489,500 386,939 102,561
Excess (deficiency) of revenues over
(under) expenditures (424,089)(424,089)278,260 702,349
OTHER FINANCING SOURCES
(USES)
Transfers in 385,604 385,604 324,366 (61,238)
Total Other Financing Sources
(Uses)385,604 385,604 324,366 (61,238)
Net Change in Fund Balance $ (38,485)$ (38,485)602,626 $ 641,111
FUND BALANCE - Beginning of Year 365,206
FUND BALANCE - END OF YEAR $ 967,832
Page 111145
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - MOTOR FUEL TAX FUND - NONMAJOR SPECIAL
REVENUE FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $ 504,029 $ 504,029 $ 494,702 $(9,327)
Investment income 3,750 3,750 9,738 5,988
Total Revenues 507,779 507,779 504,440 (3,339)
EXPENDITURES
Capital Outlay 1,300,000 1,360,474 1,293,961 66,513
Contingency 136,047 136,047 -136,047
Total Expenditures 1,436,047 1,496,521 1,293,961 202,560
Net Change in Fund Balance $ (928,268)$ (988,742)(789,521)$ 199,221
FUND BALANCE - Beginning of Year 1,302,806
FUND BALANCE - END OF YEAR $ 513,285
Page 112146
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL CEMETERY FUND - NONMAJOR SPECIAL
REVENUE FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Grants and contributions $ 12,000 $ 12,000 $ 89,450 $ 77,450
Charges for services 666,380 666,380 615,378 (51,002)
Investment income 50,000 50,000 821,340 771,340
Miscellaneous --240 240
Total Revenues 728,380 728,380 1,526,408 798,028
EXPENDITURES
Current
General government 615,397 665,397 571,540 93,857
Capital Outlay 210,000 393,787 273,800 119,987
Contingency 100,918 100,918 -100,918
Total Expenditures 926,315 1,160,102 845,340 314,762
Net Change in Fund Balance $ (197,935)$ (431,722)681,068 $ 1,112,790
FUND BALANCE - Beginning of Year 6,264,674
FUND BALANCE - END OF YEAR $ 6,945,742
Page 113147
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - SENIOR RESOURCES COMMISSION FUND - NONMAJOR
SPECIAL REVENUE FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Grants and contributions $ 194,000 $ 194,000 $ 195,840 $ 1,840
Charges for services 185,940 185,940 139,125 (46,815)
Investment income 744 744 3,442 2,698
Miscellaneous 2,000 2,000 600 (1,400)
Total Revenues 382,684 382,684 339,007 (43,677)
EXPENDITURES
Current
Culture and recreation 617,377 617,377 557,605 59,772
Contingency 61,738 61,738 -61,738
Total Expenditures 679,115 679,115 557,605 121,510
Excess (deficiency) of revenues over
(under) expenditures (296,431)(296,431)(218,598)77,833
OTHER FINANCING SOURCES
Transfers in 238,853 238,853 228,853 (10,000)
Total Other Financing Sources 238,853 238,853 228,853 (10,000)
Net Change in Fund Balance $ (57,578)$ (57,578)10,255 $ 67,833
FUND BALANCE - Beginning of Year 161,339
FUND BALANCE - END OF YEAR $ 171,594
Page 114148
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - HOUSING TRUST FUND - NONMAJOR SPECIAL REVENUE
FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Other taxes $ 48,000 $ 48,000 $ 24,000 $(24,000)
Investment income 5,600 5,600 18,043 12,443
Miscellaneous --650,000 650,000
Total Revenues 53,600 53,600 692,043 638,443
EXPENDITURES
Current
General government 250,000 250,000 - 250,000
Contingency 25,000 25,000 -25,000
Total Expenditures 275,000 275,000 -275,000
Net Change in Fund Balance $ (221,400)$ (221,400)692,043 $ 913,443
FUND BALANCE - Beginning of Year 725,879
FUND BALANCE - END OF YEAR $ 1,417,922
Page 115149
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - DEBT SERVICE FUND - NONMAJOR DEBT SERVICE FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Taxes
Property $ 1,652,698 $ 1,652,698 $ 1,661,850 $ 9,152
Grants and contributions 151,697 151,697 152,012 315
Investment income 10,783 10,783 30,432 19,649
Total Revenues 1,815,178 1,815,178 1,844,294 29,116
EXPENDITURES
Current
General government 3,750 3,750 3,750 -
Debt service
Principal retirement 1,298,796 1,298,796 1,298,796 -
Interest and fiscal charges 1,277,590 1,277,590 1,277,596 (6)
Total Expenditures 2,580,136 2,580,136 2,580,142 (6)
Excess (deficiency) of revenues over
(under) expenditures (764,958)(764,958)(735,848)29,110
OTHER FINANCING SOURCES
(USES)
Transfers in 886,212 886,212 860,793 (25,419)
Transfers out -(41,880)(41,880)-
Total Other Financing Sources
(Uses)886,212 844,332 818,913 (25,419)
Net Change in Fund Balance $ 121,254 $ 79,374 83,065 $ 3,691
FUND BALANCE - Beginning of Year 1,438,822
FUND BALANCE - END OF YEAR $ 1,521,887
Page 116150
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - LAUREL/WESTERN REDEVELOPMENT TIF FUND -
NONMAJOR CAPITAL PROJECTS FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Investment income $ 5,000 $ 5,000 $ 17,046 $ 12,046
Total Revenues 5,000 5,000 17,046 12,046
EXPENDITURES
Current
General government 51,550 67,276 12,205 55,071
Capital Outlay 1,200,000 1,200,000 866,590 333,410
Contingency 150,888 150,888 -150,888
Total Expenditures 1,402,438 1,418,164 878,795 539,369
Excess (deficiency) of revenues over
(under) expenditures (1,397,438)(1,413,164)(861,749)551,415
OTHER FINANCING SOURCES
(USES)
Transfers out (241,600)(241,600)(241,600)-
Total Other Financing Sources
(Uses)(241,600)(241,600)(241,600)-
Net Change in Fund Balance $ (1,639,038)$ (1,654,764)(1,103,349)$ 551,415
FUND BALANCE - Beginning of Year 1,787,270
FUND BALANCE - END OF YEAR $ 683,921
Page 117151
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - CAPITAL IMPROVEMENTS FUND - MAJOR CAPITAL
PROJECTS FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Taxes
Property $ 831,764 $ 831,764 $ 827,728 $(4,036)
Other taxes 1,376,480 1,376,480 1,646,900 270,420
Grants and contributions -- 274,408 274,408
Charges for services 643,613 643,613 725,624 82,011
Investment income 33,337 33,337 82,955 49,618
Miscellaneous 5,000 5,000 64,254 59,254
Total Revenues 2,890,194 2,890,194 3,621,869 731,675
EXPENDITURES
Current
General government 91,180 98,113 30,339 67,774
Capital Outlay 5,692,767 7,042,208 5,330,350 1,711,858
Contingency 695,281 695,281 -695,281
Total Expenditures 6,479,228 7,835,602 5,360,689 2,474,913
Excess (deficiency) of revenues over
(under) expenditures (3,589,034)(4,945,408)(1,738,820)3,206,588
OTHER FINANCING SOURCES
(USES)
Transfers in 1,834,883 1,834,883 3,076,762 1,241,879
Proceeds from capital asset sales 20,000 20,000 24,591 4,591
Total Other Financing Sources
(Uses)1,854,883 1,854,883 3,101,353 1,246,470
Net Change in Fund Balance $ (1,734,151)$ (3,090,525)1,362,533 $ 4,453,058
FUND BALANCE - Beginning of Year 4,575,514
FUND BALANCE - END OF YEAR $ 5,938,047
Page 118152
Major Enterprise Fund
Waterworks and Sewerage Fund –This fund accounts for the provision of water and sewer service to
the residents of the City.
Nonmajor Enterprise Fund
Deerpath Golf Course Fund –This fund accounts for operations of the City golf course. Financing is
provided by user charges from utilizing the golf course.
153
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENSES, AND NONOPERATING REVENUES (EXPENSES) - BUDGET
AND ACTUAL (BUDGETARY BASIS)
WATERWORKS AND SEWERAGE FUND - MAJOR ENTERPRISE FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
OPERATING REVENUES
Charges for services $ 7,914,541 $ 7,914,541 $ 7,970,710 $ 56,169
Connection fees 98,500 98,500 90,635 (7,865)
Miscellaneous 8,427 8,427 22,209 13,782
Total Operating Revenues 8,021,468 8,021,468 8,083,554 62,086
OPERATING EXPENSES
General and administrative 2,291,667 2,291,667 2,511,247 (219,580)
Operations and maintenance 9,160,621 9,695,550 2,203,728 7,491,822
Contingency 1,525,261 1,525,261 -1,525,261
Total Operating Expenses 12,977,549 13,512,478 4,714,975 8,797,503
NON-OPERATING REVENUES
(EXPENSES)
Investment income 82,267 82,267 229,492 147,225
Loss on disposal of capital assets - - 16,704 16,704
Principal retirement (1,872,000)(1,872,000)- 1,872,000
Interest expense (340,391)(340,391)(633,279)(292,888)
Paying agent fees (2,999)(2,999)(57,908)(54,909)
Other --11,352 11,352
Total Non-Operating Revenues
(Expenses) (2,133,123)(2,133,123)(433,639)1,699,484
Page 119154
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENSES, AND NONOPERATING REVENUE (EXPENSES) - BUDGET AND
ACTUAL (BUDGETARY BASIS)
DEERPATH GOLF COURSE FUND - NONMAJOR ENTERPRISE FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
OPERATING REVENUES
Charges for services $ 1,680,546 $ 1,680,546 $ 1,480,618 $(199,928)
Total Operating Revenues 1,680,546 1,680,546 1,480,618 (199,928)
OPERATING EXPENSES
General and administrative 631,950 631,950 598,558 33,392
Operations and maintenance 2,139,461 2,146,138 853,619 1,292,519
Contingency 287,556 287,556 -287,556
Total Operating Expenses 3,058,967 3,065,644 1,452,177 1,613,467
NON-OPERATING REVENUES
(EXPENSES)
Investment income 2,300 2,300 7,498 5,198
Principal retirement (80,000)(80,000)- 80,000
Interest expense (16,970)(16,970)(14,576)2,394
Paying agent fees (500)(500)-500
Other --32,983 32,983
Total Non-Operating Revenues
(Expenses) (95,170)(95,170)25,905 121,075
Page 120155
Internal Service Funds
Fleet 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.
156
CITY OF LAKE FOREST
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
As of April 30, 2018
Fleet Self Insurance
Liability
Insurance Totals
ASSETS
Current Assets
Cash and cash equivalents $ 916,820 $ 4,857,133 $ 1,416,647 $ 7,190,600
Receivables
Other 2,340 8,813 1,882,922 1,894,075
Inventories 332,451 - - 332,451
Prepaid items --552,713 552,713
Total Current Assets 1,251,611 4,865,946 3,852,282 9,969,839
Noncurrent Assets
Capital assets (net of accumulated
depreciation)
Property and equipment 8,913 --8,913
Total Noncurrent Assets 8,913 --8,913
Total Assets 1,260,524 4,865,946 3,852,282 9,978,752
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to
pensions 34,421 --34,421
Total Deferred Outflows of Resources 34,421 --34,421
LIABILITIES
Current Liabilities
Accounts payable 53,079 469,457 44,368 566,904
Accrued liabilities 60,632 595,370 50,186 706,188
Total Current Liabilities 113,711 1,064,827 94,554 1,273,092
Noncurrent Liabilities
Compensated absences 34,094 - - 34,094
Net pension liability 50,096 --50,096
Total Noncurrent Liabilities 84,190 --84,190
Total Liabilities 197,901 1,064,827 94,554 1,357,282
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to
pensions 283,868 --283,868
Total Deferred Inflows of Resources 283,868 --283,868
NET POSITION
Net investment in capital assets 8,913 - - 8,913
Unrestricted 804,263 3,801,119 3,757,728 8,363,110
TOTAL NET POSITION $ 813,176 $ 3,801,119 $ 3,757,728 $ 8,372,023
Page 121157
CITY OF LAKE FOREST
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended April 30, 2018
Fleet Self Insurance
Liability
Insurance Totals
OPERATING REVENUES
Charges for services $ 1,650,312 $ 5,273,136 $ 1,564,118 $ 8,487,566
Total Operating Revenues 1,650,312 5,273,136 1,564,118 8,487,566
OPERATING EXPENSES
General and administrative 1,852,332 5,171,717 946,426 7,970,475
Depreciation and amortization 4,805 --4,805
Total Operating Expenses 1,857,137 5,171,717 946,426 7,975,280
Operating Income (Loss)(206,825)101,419 617,692 512,286
NONOPERATING REVENUES
Investment income 15,814 73,756 22,654 112,224
Total Nonoperating Revenues 15,814 73,756 22,654 112,224
Change in net position (191,011)175,175 640,346 624,510
NET POSITION - Beginning of Year 1,004,187 3,625,944 3,117,382 7,747,513
NET POSITION - END OF YEAR $ 813,176 $ 3,801,119 $ 3,757,728 $ 8,372,023
Page 122158
CITY OF LAKE FOREST
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
For the Year Ended April 30, 2018
Fleet Self Insurance
Liability
Insurance Totals
CASH FLOWS FROM OPERATING
ACTIVITIES
Receipts from interfund services provided $ 1,650,680 $ 5,358,023 $ 1,327,356 $ 8,336,059
Paid to suppliers for goods and services (1,016,867)(5,317,153)(1,027,135)(7,361,155)
Paid to employees for services (747,888)--(747,888)
Net Cash Flows From Operating
Activities (114,075)40,870 300,221 227,016
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest received 15,814 73,756 22,654 112,224
Net Cash Flows From Investing Activities 15,814 73,756 22,654 112,224
Net Change in Cash and Cash
Equivalents (98,261)114,626 322,875 339,240
CASH AND CASH EQUIVALENTS - Beginning
of Year 1,015,081 4,742,507 1,093,772 6,851,360
CASH AND CASH EQUIVALENTS - END
OF YEAR $ 916,820 $ 4,857,133 $ 1,416,647 $ 7,190,600
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH FLOWS
FROM OPERATING ACTIVITIES
Operating income (loss)$(206,825)$ 101,419 $ 617,692 $ 512,286
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Flows From
Operating Activities
Depreciation 4,805 --4,805
Changes in assets and liabilities
Accounts receivable 1,582 84,887 (236,762)(150,293)
Inventories 11,815 -- 11,815
Prepaid items --(37,230)(37,230)
Deferred outflows related to pensions 204,215 -- 204,215
Accounts payable 18,695 697 23,623 43,015
Accrued liabilities -(146,133)(67,102)(213,235)
Accrued salaries 40,095 -- 40,095
Net pension liability (419,068)--(419,068)
Deferred inflows related to pensions 256,666 -- 256,666
Deferred revenue (1,214)--(1,214)
Compensated absences (24,841)--(24,841)
NET CASH FLOWS FROM
OPERATING ACTIVITIES $ (114,075)$ 40,870 $ 300,221 $ 227,016
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
None
Page 123159
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENSES, AND NONOPERATING REVENUES - BUDGET AND ACTUAL
(BUDGETARY BASIS)
FLEET FUND - INTERNAL SERVICE FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
OPERATING REVENUES
Charges for services $ 1,649,797 $ 1,649,797 $ 1,650,312 $ 515
Total Operating Revenues 1,649,797 1,649,797 1,650,312 515
OPERATING EXPENSES
General and administrative 1,844,789 1,853,789 1,852,332 1,457
Depreciation and amortization --4,805 (4,805)
Contingency 185,379 185,379 -185,379
Total Operating Expenses 2,030,168 2,039,168 1,857,137 182,031
NON-OPERATING REVENUES
Investment income 5,000 5,000 15,814 10,814
Page 124160
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENSES, AND NONOPERATING REVENUE - BUDGET AND ACTUAL
(BUDGETARY BASIS)
SELF INSURANCE FUND - INTERNAL SERVICE FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
OPERATING REVENUES
Charges for services $ 5,670,000 $ 5,670,000 $ 5,273,136 $(396,864)
Total Operating Revenues 5,670,000 5,670,000 5,273,136 (396,864)
OPERATING EXPENSES
General and administrative 6,160,000 6,160,000 5,171,717 988,283
Contingency 616,000 616,000 -616,000
Total Operating Expenses 6,776,000 6,776,000 5,171,717 1,604,283
NON-OPERATING REVENUES
Investment income 27,000 27,000 73,756 46,756
Page 125161
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENSES, AND NONOPERATING REVENUE - BUDGET AND ACTUAL
(BUDGETARY BASIS)
LIABILITY INSURANCE FUND - INTERNAL SERVICE FUND
For the Year Ended April 30, 2018
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
OPERATING REVENUES
Charges for services $ 1,327,348 $ 1,327,348 $ 1,564,118 $ 236,770
Total Operating Revenues 1,327,348 1,327,348 1,564,118 236,770
OPERATING EXPENSES
General and administrative 1,267,352 1,267,352 946,426 320,926
Contingency 126,735 126,735 -126,735
Total Operating Expenses 1,394,087 1,394,087 946,426 447,661
NON-OPERATING REVENUES
Investment income 11,570 11,570 22,654 11,084
Page 126162
Pension Trust Funds
Police 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 Fund
Cemetery Trust Fund –This fund accounts for monies provided by private donations. The investment
earnings are expended for the operations of the cemetery.
Agency Fund
Special 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.
163
CITY OF LAKE FOREST
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST FUNDS
As of April 30, 2018
Police Pension
Firefighters'
Pension Totals
ASSETS
Cash $ 52,313 $ 846,096 $ 898,409
Money markets 76,883 - 76,883
Investments
U.S. treasury obligations 9,015,857 3,932,317 12,948,174
U.S. government agencies 249,362 2,651,110 2,900,472
Municipal/corporate bonds 1,270,914 6,169,947 7,440,861
Mutual funds 17,503,515 22,539,955 40,043,470
Real estate investment fund 3,421,996 - 3,421,996
Interest receivable 56,575 94,271 150,846
Prepaid items - 9,840 9,840
Due from primary government 26,675 16,988 43,663
Total Assets 31,674,090 36,260,524 67,934,614
LIABILITIES
Accounts payable 23,155 4,039 27,194
Total Liabilities 23,155 4,039 27,194
NET POSITION
Held in trust for pension benefits $ 31,650,935 $ 36,256,485 $ 67,907,420
Page 127164
CITY OF LAKE FOREST
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST FUNDS
For the Year Ended April 30, 2018
Police Pension
Firefighters'
Pension Total
ADDITIONS
Contributions
Employer $ 2,094,125 $ 1,308,348 $ 3,402,473
Employee 379,500 296,202 675,702
Miscellaneous 50 -50
Total Contributions 2,473,675 1,604,550 4,078,225
Interest
Interest 539,854 798,715 1,338,569
Net appreciation in fair value of investments 1,605,296 2,159,527 3,764,823
Total Investment Income 2,145,150 2,958,242 5,103,392
Less Investment expense 109,734 91,948 201,682
Net Investment Income 2,035,416 2,866,294 4,901,710
Total Additions 4,509,091 4,470,844 8,979,935
DEDUCTIONS
Pension benefits and refunds 2,611,864 2,419,683 5,031,547
Other administrative expenses 4,740 4,740 9,480
Total Deductions 2,616,604 2,424,423 5,041,027
Change in Net Position 1,892,487 2,046,421 3,938,908
NET POSITION - Beginning of Year 29,758,448 34,210,064 63,968,512
NET POSITION - END OF YEAR $ 31,650,935 $ 36,256,485 $ 67,907,420
Page 128165
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FIDUCIARY NET POSITION - BUDGET AND
ACTUAL -
POLICE PENSION FUND - PENSION TRUST FUND
For the Year Ended April 30, 2018
2018
Original Budget Final Budget Actual
Variance with
Final Budget
Additions
Contributions
Employer $ 2,100,000 $ 2,100,000 $ 2,094,125 $(5,875)
Employee 383,000 383,000 379,500 (3,500)
Miscellaneous --50 50
Total contributions 2,483,000 2,483,000 2,473,675 (9,325)
Investment Income
Interest 500,000 500,000 539,854 39,854
Net appreciation in fair value of
investments 1,513,220 1,513,220 1,605,296 92,076
Total investment income 2,013,220 2,013,220 2,145,150 131,930
Less Investment expense 115,000 115,000 109,734 5,266
Net investment income 1,898,220 1,898,220 2,035,416 137,196
Total additions 4,381,220 4,381,220 4,509,091 127,871
Deductions
Pension benefits and refunds 2,750,000 2,750,000 2,611,864 138,136
Other administrative expenses 5,000 5,000 4,740 260
Contingency 287,000 287,000 -287,000
Total deductions 3,042,000 3,042,000 2,616,604 425,396
Change in net position $ 1,339,220 $ 1,339,220 1,892,487 $ 553,267
Net position, beginning of year 29,758,448
Net position, end of year $ 31,650,935
Page 129166
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FIDUCIARY NET POSITION - BUDGET AND
ACTUAL -
FIREFIGHTERS' PENSION FUND - PENSION TRUST FUND
For the Year Ended April 30, 2018
2018
Original Budget Final Budget Actual
Variance with
Final Budget
Additions
Contributions
Employer $ 1,311,762 $ 1,311,762 $ 1,308,348 $(3,414)
Employee 297,250 297,250 296,202 (1,048)
Total contributions 1,609,012 1,609,012 1,604,550 (4,462)
Investment Income
Interest 600,000 600,000 798,715 198,715
Net appreciation in fair value of
investments 1,740,930 1,740,930 2,159,527 418,597
Total investment income 2,340,930 2,340,930 2,958,242 617,312
Less Investment expense 93,000 93,000 91,948 1,052
Net investment income 2,247,930 2,247,930 2,866,294 618,364
Total additions 3,856,942 3,856,942 4,470,844 613,902
Deductions
Pension benefits and refunds 2,450,000 2,450,000 2,419,683 30,317
Other administrative expenses 5,000 5,000 4,740 260
Contingency 254,800 254,800 -254,800
Total deductions 2,709,800 2,709,800 2,424,423 285,377
Change in net position $ 1,147,142 $ 1,147,142 2,046,421 $ 899,279
Net position, beginning of year 34,210,064
Net position, end of year $ 36,256,485
Page 130167
CITY OF LAKE FOREST
Statement of Changes in Assets and Liabilities
Agency Fund - Special Assessment Fund
As of April 30, 2018
Balance, Balance,
May 1, 2017 Additions Deletion April 30, 2018
Assets
Cash and cash equivalents 60,174$ -$ -$ 60,174$
Liabilities
Due to special assessment districts 60,174$ -$ -$ 60,174$
Page 131168
Discretely Presented Component Unit
Lake 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.
169
CITY OF LAKE FOREST
Discretely Presented Component Unit - Lake Forest Library
Statement of Net Position and General Fund Balance Sheet
General Statement of
Fund Adjustments Net Position
Assets and Deferred Outflows of Resources
Cash and cash equivalents 3,701,986$ -$ 3,701,986$
uncollectibles)
4,010,981 - 4,010,981
7,332 - 7,332
1,135 1,135
Prepaid items 43,999 - 43,999
Capital assets not depreciated - 238,500 238,500
Capital assets depreciated, net of
accumulated depreciation - 2,886,301 2,886,301
7,765,433 3,124,801 10,890,234
Deferred outflows of Resources
Deferred outflows related to pensions - 82,127 82,127
Total Assets and Deferred Outflows of
Resources 7,765,433$ 3,206,928$ 10,972,361$
Liabilities, Deferred Inflows of Resources,
and Fund Balance/Net Position
Liabilities
87,290$ -$ 87,290$
79,256 - 79,256
Long-term obligations
Due within one year - 33,333 33,333
Due in more than one year - 420,951 420,951
Total liabilities 166,546 454,284 620,830
Deferred Inflows of Resources
Property taxes levied for future periods 4,010,981 - 4,010,981
Deferred inflows related to pensions - 722,555 722,555
Total deferred inflows of resources 4,010,981 722,555 4,733,536
Fund Balance/Net Position
Nonspendable - prepaids 43,999 (43,999) -
Unassigned 3,543,907 (3,543,907) -
Net position
Net investment in capital assets - 3,094,112 3,094,112
Unrestricted - 2,523,883 2,523,883
Total fund balance/net position 3,587,906 2,030,089 5,617,995
Total Liabilities, Deferred Inflows of
Resources, and Fund Balance/Net
Position 7,765,433$ 3,206,928$ 10,972,361$
Accounts payable
Accrued liabilities
As of April 30, 2018
Property taxes
Receivables (net of allowance for
Other taxes
Total assets
Capital assets
Other
Page 132
170
CITY OF LAKE FOREST
Discretely Presented Component Unit - Lake Forest Library
Statement of Activities and General Fund Statement of Revenues, Expenditures, and
Changes in Fund Balance
For the Year Ended April 30, 2018
Statement
General of
Fund Adjustments Activities
Revenues
3,948,138$ -$ 3,948,138$
37,364 - 37,364
182,817 - 182,817
44,795 - 44,795
Fines 28,192 - 28,192
69,186 - 69,186
4,310,492 - 4,310,492
Expenditures/expenses
Current 3,437,890 325,918 3,763,808
Capital Outlay 54,932 (54,932) -
Debt Service 28,510 (28,510) -
Total expenditures/expenses 3,521,332 242,476 3,763,808
Net change in fund balance/net position 789,160 (242,476) 546,684
2,798,746 2,272,565 5,071,311
Fund balance/net position, end of year 3,587,906$ 2,030,089$ 5,617,995$
Fund balance/net position, beginning of year
Property taxes
Charges for services
Total revenues
Intergovernmental
Grants and contributions
Investment Income
Page 133
171
CITY OF LAKE FOREST
Summary of Debt Service Requirements to Maturity
As of April 30, 2018
General
Fiscal Obligation
Year Bonds
2019 5,239,136$
2020 5,531,243
2021 5,802,829
2022 5,675,141
2023 5,678,151
2024 5,278,211
2025 3,187,203
2026 3,189,002
2027 3,165,847
2028 3,170,385
2029 3,767,920
2030 3,755,325
2031 3,824,125
2032 3,753,525
2033 3,694,763
2034 2,402,563
2035 1,149,063
2036 1,150,250
2037 1,145,275
2038 786,600
Total 71,346,551$
Page 134
172
CITY OF LAKE FOREST
Debt Service Requirements to Maturity - General Obligation Bonds
As of April 30, 2018
Year Principal Interest Principal Interest Principal Interest
2019 65,000$ 9,525$ 17,203$ 3,096$ 119,422$ 26,855$
2020 65,000 7,932 17,993 2,563 124,857 23,213
2021 70,000 6,275 18,839 1,987 130,663 19,280
2022 75,000 4,350 19,743 1,365 136,870 15,034
2023 75,000 2,213 20,700 704 143,508 10,448
2024 - - - - 150,611 5,497
2025 - - - - - -
2026 - - - - - -
2027 - - - - - -
2028 - - - - - -
2029 - - - - - -
2030 - - - - - -
2031 - - - - - -
2032 - - - - - -
2033 - - - - - -
2034 - - - - - -
2035 - - - - - -
2036 - - - - - -
2037 - - - - - -
2038 - - - - - -
350,000$ 30,295$ 94,478$ 9,715$ 805,931$ 100,327$
Fiscal
Tax BondsTax Bonds Tax Bonds
Special Service Area 25 Special Service Area 26 Special Service Area 29
Page 135
173
CITY OF LAKE FOREST
Debt Service Requirements to Maturity - General Obligation Bonds
As of April 30, 2018
Year Principal Interest Principal Interest Principal Interest
2019 185,000$ 93,745$ -$ 172,500$ 225,000$ 236,099$
2020 190,000 88,195 - 172,500 215,000 227,099
2021 200,000 82,495 - 172,500 405,000 217,424
2022 205,000 76,495 - 172,500 415,000 198,693
2023 215,000 68,808 - 172,500 425,000 178,980
2024 225,000 60,745 - 172,500 435,000 158,793
2025 235,000 51,745 - 172,500 445,000 137,043
2026 245,000 42,345 - 172,500 460,000 114,792
2027 255,000 32,545 - 172,500 475,000 91,562
2028 265,000 22,345 - 172,500 490,000 67,100
2029 280,000 11,480 - 172,500 490,000 40,150
2030 - - 540,000 172,500 240,000 13,200
2031 - - 780,000 141,450 - -
2032 - - 820,000 96,600 - -
2033 - - 860,000 49,450 - -
2034 - - - - - -
2035 - - - - - -
2036 - - - - - -
2037 - - - - - -
2038 - - - - - -
2,500,000$ 630,943$ 3,000,000$ 2,357,500$ 4,720,000$ 1,680,935$
Obilgation Bonds Obligation Bonds
Fiscal
Series 2009 Series 2010 Series B 2010 Series C
Obilgation Bonds
Page 136
174
CITY OF LAKE FOREST
Debt Service Requirements to Maturity - General Obligation Bonds
As of April 30, 2018
Fiscal
Year Principal Interest Principal Interest
2019 130,000$ 9,975$ 2,300,000$ 376,750$
2020 130,000 7,050 2,400,000 319,250
2021 140,000 3,150 2,470,000 259,250
2022 - - 2,530,000 197,500
2023 - - 2,605,000 134,250
2024 - - 1,870,000 56,100
2025 - - - -
2026 - - - -
2027 - - - -
2028 - - - -
2029 - - - -
2030 - - - -
2031 - - - -
2032 - - - -
2033 - - - -
2034 - - - -
2035 - - - -
2036 - - - -
2037 - - - -
2038 - - - -
400,000$ 20,175$ 14,175,000$ 1,343,100$
Obligation Bonds Obligation Bonds
2011 Series A 2011 Series B
Page 137
175
CITY OF LAKE FOREST
Debt Service Requirements to Maturity - General Obligation Bonds
As of April 30, 2018
Fiscal
Year Principal Interest Principal Interest
2019 200,000$ 333,763$ 175,000$ 289,050$
2020 350,000 329,763 305,000 284,675
2021 430,000 322,763 305,000 277,050
2022 435,000 312,013 340,000 269,425
2023 440,000 298,962 355,000 260,925
2024 450,000 285,762 370,000 252,050
2025 460,000 272,262 385,000 242,800
2026 475,000 258,462 405,000 233,175
2027 480,000 241,837 410,000 223,050
2028 495,000 225,037 435,000 212,800
2029 930,000 206,475 650,000 200,838
2030 960,000 171,600 695,000 181,338
2031 1,085,000 133,200 740,000 160,488
2032 1,120,000 89,800 705,000 136,438
2033 1,125,000 45,000 720,000 113,525
2034 - - 1,530,000 90,125
2035 - - 330,000 36,575
2036 - - 340,000 25,025
2037 - - 350,000 13,125
2038 - - - -
9,435,000$ 3,526,699$ 9,545,000$ 3,502,475$
Obligation Bonds Obligation Bonds
Series 2013 Series 2015
Page 138
176
CITY OF LAKE FOREST
Debt Service Requirements to Maturity - General Obligation Bonds
As of April 30, 2018
Fiscal
Year Principal Interest Principal Interest Total
2019 -$ 271,153$ 3,416,625$ 1,822,511$ 5,239,136$
2020 - 271,153 3,797,850 1,733,393 5,531,243
2021 - 271,153 4,169,502 1,633,327 5,802,829
2022 - 271,153 4,156,613 1,518,528 5,675,141
2023 - 271,153 4,279,208 1,398,943 5,678,151
2024 515,000 271,153 4,015,611 1,262,600 5,278,211
2025 525,000 260,853 2,050,000 1,137,203 3,187,203
2026 535,000 247,728 2,120,000 1,069,002 3,189,002
2027 550,000 234,353 2,170,000 995,847 3,165,847
2028 565,000 220,603 2,250,000 920,385 3,170,385
2029 580,000 206,478 2,930,000 837,920 3,767,920
2030 590,000 191,688 3,025,000 730,325 3,755,325
2031 610,000 173,988 3,215,000 609,125 3,824,125
2032 630,000 155,688 3,275,000 478,525 3,753,525
2033 645,000 136,788 3,350,000 344,763 3,694,763
2034 665,000 117,438 2,195,000 207,563 2,402,563
2035 685,000 97,488 1,015,000 134,063 1,149,063
2036 710,000 75,225 1,050,000 100,250 1,150,250
2037 730,000 52,150 1,080,000 65,275 1,145,275
2038 760,000 26,600 760,000 26,600 786,600
9,295,000$ 3,823,978$ 54,320,409$ 17,026,142$ 71,346,551$
Series 2017
Obligation Bonds
Total
Requirements
Page 139
177
CITY OF LAKE FOREST
Special Service Area 25 Special Tax Bonds – 2003 Series
April 30, 2018
Date of issue: May 1, 2003
Date of maturity: December 15, 2022
Authorized issue: $ 1,050,000
Denomination of bonds: $ 5,000
Interest rate: 1.95-2.95%
Interest dates: June 15 and December 15
Payable at: Lake Forest Bank and Trust
Lake Forest, Illinois
Redeemable annually
on December 15 Amount
2018 $ 65,000
2019 65,000
2020 70,000
2021 75,000
2022 75,000
$ 350,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2017 $ 65,000 $ 9,525 $ 74,525 2018 $ 4,763 2018 $ 4,762
2018 65,000 7,932 72,932 2019 3,966 2019 3,966
2019 70,000 6,275 76,275 2020 3,138 2020 3,137
2020 75,000 4,350 79,350 2021 2,175 2021 2,175
2021 75,000 2,213 77,213 2022 1,107 2022 1,106
$ 350,000 $ 30,295 $ 380,295
Coupons due on
Page 140
178
Special Service Area 26 Special Tax Bonds – 2003 Series
April 30, 2018
Date of issue: October 7, 2003
Date of maturity: December 15, 2022
Authorized issue: $ 276,500
Denomination of bonds: One bond per maturity
Interest rates:2.5-3.4%
Interest dates: June 15 and December 15
Payable at: Lake Forest Bank and Trust
Lake Forest, Illinois
Redeemable annually
on December 15 Amount
2018 $ 17,203
2019 17,993
2020 18,839
2021 19,743
2022 20,700
$ 94,478
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2017 $ 17,203 $ 3,096 $ 20,299 2018 $ 1,548 2018 $ 1,548
2018 17,993 2,563 20,556 2019 1,282 2019 1,281
2019 18,839 1,987 20,826 2020 994 2020 993
2020 19,743 1,365 21,108 2021 683 2021 682
2021 20,700 704 21,404 2022 352 2022 352
$ 94,478 $ 9,715 $ 104,193
Coupons due on
CITY OF LAKE FOREST
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CITY OF LAKE FOREST
Special Service Area 29 Special Tax Bonds – 2004 Series
April 30, 2018
Date of issue:
Date of maturity: December 15, 2023
Authorized issue: $ 2,000,000
Denomination of bonds: One bond per maturity
Interest rates:2.55-3.65%
Interest dates: June 15 and December 15
Payable at: Lake Forest Bank and Trust
Lake Forest, Illinois
Redeemable annually
on December 15 Amount
2018 $ 119,422
2019 124,857
2020 130,663
2021 136,870
2022 143,508
Thereafter 150,611
$ 805,931
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2017 $ 119,422 $ 26,855 $ 146,277 2018 $ 13,427 2018 $ 13,428
2018 124,857 23,213 148,070 2019 11,606 2019 11,607
2019 130,663 19,280 149,943 2020 9,640 2020 9,640
2020 136,870 15,034 151,904 2021 7,517 2021 7,517
2021 143,508 10,448 153,956 2022 5,224 2022 5,224
Thereafter 150,611 5,497 156,108 Thereafter 2,748 Thereafter 2,749
$ 805,931 $ 100,327 $ 906,258
Coupons due on
December 20, 2004
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180
CITY OF LAKE FOREST
General Obligation Bonds – 2009
April 30, 2018
Date of issue:
Date of maturity: December 15, 2028
Authorized issue: $ 3,680,000
Denomination of bonds: $ 5,000
Interest rates: 2.00 - 4.10%
Interest dates: June 15 and December 15
Payable at: Wells Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2018 $ 185,000
2019 190,000
2020 200,000
2021 205,000
2022 215,000
Thereafter 1,505,000
$ 2,500,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2017 $ 185,000 $ 93,745 $ 278,745 2018 $ 46,873 2018 $ 46,872
2018 190,000 88,195 278,195 2019 44,097 2019 44,098
2019 200,000 82,495 282,495 2020 41,248 2020 41,247
2020 205,000 76,495 281,495 2021 38,248 2021 38,247
2021 215,000 68,808 283,808 2022 34,404 2022 34,404
Thereafter 1,505,000 221,205 1,726,205 Thereafter 110,602 Thereafter 110,603
$ 2,500,000 $ 630,943 $ 3,130,943
Coupons due on
May 14, 2009
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181
CITY OF LAKE FOREST
General Obligation Bonds – 2010B
April 30, 2018
Date of issue:
Date of maturity: December 15, 2032
Authorized issue: $ 3,000,000
Denomination of bonds: $ 5,000
Interest rate: 5.75%
Interest dates: June 15 and December 15
Payable at: Wells Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2029 $ 540,000
2030 780,000
2031 820,000
2032 860,000
$ 3,000,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2017 $— $ 172,500 $ 172,500 2018 $ 86,250 2018 $ 86,250
2018 — 172,500 172,500 2019 86,250 2019 86,250
2019 — 172,500 172,500 2020 86,250 2020 86,250
2020 — 172,500 172,500 2021 86,250 2021 86,250
2021 — 172,500 172,500 2022 86,250 2022 86,250
Thereafter 3,000,000 1,495,000 4,495,000 Thereafter 747,500 Thereafter 747,500
$ 3,000,000 $ 2,357,500 $ 5,357,500
Coupons due on
May 12, 2010
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CITY OF LAKE FOREST
General Obligation Bonds – 2010C
April 30, 2018
Date of issue:
Date of maturity: December 15, 2029
Authorized issue: $ 5,425,000
Denomination of bonds: $ 5,000
Interest rates: 3.00 - 5.50%
Interest dates: June 15 and December 15
Payable at: Wells Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2018 $ 225,000
2019 215,000
2020 405,000
2021 415,000
2022 425,000
Thereafter 3,035,000
$ 4,720,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2017 $ 225,000 $ 236,099 $ 461,099 2018 $ 118,049 2018 $ 118,050
2018 215,000 227,099 442,099 2019 113,549 2019 113,550
2019 405,000 217,424 622,424 2020 108,712 2020 108,712
2020 415,000 198,693 613,693 2021 99,347 2021 99,346
2021 425,000 178,980 603,980 2022 89,490 2022 89,490
Thereafter 3,035,000 622,640 3,657,640 Thereafter 311,320 Thereafter 311,320
$ 4,720,000 $ 1,680,935 $ 6,400,935
Coupons due on
May 12, 2010
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CITY OF LAKE FOREST
General Obligation Bonds – 2011A
April 30, 2018
Date of issue:
Date of maturity: December 15, 2020
Authorized issue: $ 2,415,000
Denomination of bonds: $ 5,000
Interest rates: 1.50 - 3.00%
Interest dates: June 15 and December 15
Payable at: Wells Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2018 $ 130,000
2019 130,000
2020 140,000
2021 —
2022 —
Thereafter —
$ 400,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2017 $ 130,000 $ 9,975 $ 139,975 2018 $ 4,988 2018 $ 4,987
2018 130,000 7,050 137,050 2019 3,525 2019 3,525
2019 140,000 3,150 143,150 2020 1,575 2020 1,575
2020 — — — 2021 — 2021 —
2021 — — — 2022 — 2022 —
Thereafter —— — Thereafter — Thereafter —
$ 400,000 $ 20,175 $ 420,175
September 6, 2011
Coupons due on
Page 146
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CITY OF LAKE FOREST
General Obligation Bonds – 2011B
April 30, 2018
Date of issue:
Date of maturity: December 15, 2023
Authorized issue: $ 24,825,000
Denomination of bonds: $ 5,000
Interest rates: 1.00 - 3.00%
Interest dates: June 15 and December 15
Payable at: Wells Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2018 $ 2,300,000
2019 2,400,000
2020 2,470,000
2021 2,530,000
2022 2,605,000
Thereafter 1,870,000
$ 14,175,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2017 $ 2,300,000 $ 376,750 $ 2,676,750 2018 $ 188,375 2018 $ 188,375
2018 2,400,000 319,250 2,719,250 2019 159,625 2019 159,625
2019 2,470,000 259,250 2,729,250 2020 129,625 2020 129,625
2020 2,530,000 197,500 2,727,500 2021 98,750 2021 98,750
2021 2,605,000 134,250 2,739,250 2022 67,125 2022 67,125
Thereafter 1,870,000 56,100 1,926,100 Thereafter 28,050 Thereafter 28,050
$ 14,175,000 $ 1,343,100 $ 15,518,100
September 6, 2011
Coupons due on
Page 147
185
CITY OF LAKE FOREST
General Obligation Bonds – 2013
April 30, 2018
Date of issue:
Date of maturity: December 15, 2032
Authorized issue: $ 9,715,000
Denomination of bonds: $ 5,000
Interest rates: 2.00 - 4.00%
Interest dates: June 15 and December 15
Payable at: Wells Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2018 $ 200,000
2019 350,000
2020 430,000
2021 435,000
2022 440,000
Thereafter 7,580,000
$ 9,435,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2017 $ 200,000 $ 333,763 $ 533,763 2018 $ 166,881 2018 $ 166,882
2018 350,000 329,763 679,763 2019 164,882 2019 164,881
2019 430,000 322,763 752,763 2020 161,382 2020 161,381
2020 435,000 312,013 747,013 2021 156,007 2021 156,006
2021 440,000 298,962 738,962 2022 149,481 2022 149,481
Thereafter 7,580,000 1,929,435 9,509,435 Thereafter 964,718 Thereafter 964,717
$ 9,435,000 $ 3,526,699 $ 12,961,699
September 16, 2013
Coupons due on
Page 148
186
CITY OF LAKE FOREST
General Obligation Bonds – 2015
April 30, 2018
Date of issue:
Date of maturity: December 15, 2036
Authorized issue: $ 9,780,000
Denomination of bonds: $ 5,000
Interest rates: 2.50 - 3.75%
Interest dates: June 15 and December 15
Payable at: Wells Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2018 $ 175,000
2019 305,000
2020 305,000
2021 340,000
2022 355,000
Thereafter 8,065,000
$ 9,545,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2017 $ 175,000 $ 289,050 $ 464,050 2018 $ 144,525 2018 $ 144,525
2018 305,000 284,675 589,675 2019 142,338 2019 142,337
2019 305,000 277,050 582,050 2020 138,525 2020 138,525
2020 340,000 269,425 609,425 2021 134,473 2021 134,712
2021 355,000 260,925 615,925 2022 130,463 2022 130,462
Thereafter 8,065,000 2,121,350 10,186,350 Thereafter 1,060,675 Thereafter 1,060,675
$ 9,545,000 $ 3,502,475 $ 13,047,475
August 3, 2015
Coupons due on
Page 149
187
CITY OF LAKE FOREST
General Obligation Bonds - 2017
April 30, 2018
Date of issue:
Date of maturity: December 15, 2037
Authorized issue: $ 9,295,000
Denomination of bonds: $ 5,000
Interest rates: 2.00 - 3.5%
Interest dates: June 15 and December 15
Payable at: The Bank of New York Mellon Trust Company, National Association
Chicago, Illinois
Redeemable annually
on December 15 Amount
2018 $-
2019 -
2020 -
2021 -
2022 -
Thereafter 9,295,000
$ 9,295,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2017 $— $ 271,153 $ 271,153 2018 $ 135,577 2018 $ 135,576
2018 — 271,153 271,153 2019 135,577 2019 135,576
2019 — 271,153 271,153 2020 135,577 2020 135,576
2020 — 271,153 271,153 2021 135,577 2021 135,576
2021 — 271,154 271,154 2022 135,577 2022 135,577
Thereafter 9,295,000 2,468,216 11,763,216 Thereafter 1,234,108 Thereafter 1,234,108
$ 9,295,000 $ 3,823,980 $ 13,118,980
June 5, 2017
Coupons due on
Page 150
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CITY OF LAKE FOREST
Debt Service Fund
Combining Balance Sheet
As of April 30, 2018
Special Service Special Service Special Service 2004 Series B/
Area 25 Area 26 Area 29 2011B
General General General General
Obligation Obligation Obligation Obligation
Assets Bonds Bonds Bonds Bonds
Cash and cash equivalents 14,493$ 4,003$ 4,411$ 1,422,876$
uncollectibles):
73,900 20,486 144,577 -
88,393$ 24,489$ 148,988$ 1,422,876$
Deferred inflows of resources
Property taxes levied to finance FY18 73,900$ 20,486$ 144,577$ -$
Fund Balance
Fund balance- restricted for
debt service 14,493 4,003 4,411 1,422,876
Total deferred inflows of resources and fund
balances 88,393$ 24,489$ 148,988$ 1,422,876$
Receivables (net of allowance for
Property taxes
Total assets
Page 151
189
2009 2010 2013 2015
General General General General
Obligation Obligation Obligation Obligation
Bonds Bonds Bonds Bonds Total
25,404$ 34,578$ 15,725$ 397$ 1,521,887$
276,903 482,008 531,190 223,654 1,752,718
302,307$ 516,586$ 546,915$ 224,051$ 3,274,605$
276,903$ 482,008$ 531,190$ 223,654$ 1,752,718$
25,404 34,578 15,725 397 1,521,887
302,307$ 516,586$ 546,915$ 224,051$ 3,274,605$
Page 152
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CITY OF LAKE FOREST
Debt Service Fund
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended April 30, 2018
Special Service Special Service Special Service
Area 25 Area 26 Area 29
General General General
Obligation Obligation Obligation
Bonds Bonds Bonds
Revenues
Taxes:
Property taxes 71,450$ 20,555$ 145,094$
Grants and contributions- IRS rebate - - -
Investment income 559 156 629
Total Revenues 72,009 20,711 145,723
Expenditures
General government - - -
Debt Service:
Principal 60,000 16,461 114,335
Interest 10,934 3,600 30,228
Total expenditures 70,934 20,061 144,563
Excess (deficiency) of revenues
over expenditures 1,075 650 1,160
Other financing sources:
Transfers in - - -
Transfers out - - -
Total other financing sources (uses) - - -
Net change in fund balance 1,075 650 1,160
Fund balance- beginning of the year 13,418 3,353 3,251
Fund balance- end of the year 14,493$ 4,003$ 4,411$
Page 153
191
2004 Series B/
2011B 2009 2010 2013 2015
General General General General General
Obligation Obligation Obligation Obligation Obligation
Bonds Bonds Bonds Bonds Bonds Total
-$ 280,673$ 478,481$ 438,385$ 227,212$ 1,661,850$
- - 152,012 - - 152,012
23,159 1,550 2,343 1,422 614 30,432
23,159 282,223 632,836 439,807 227,826 1,844,294
500 500 1,000 750 1,000 3,750
443,000 180,000 210,000 100,000 175,000 1,298,796
88,930 98,244 416,473 335,762 293,425 1,277,596
532,430 278,744 627,473 436,512 469,425 2,580,142
(509,271) 3,479 5,363 3,295 (241,599) (735,848)
619,193 - - - 241,600 860,793
(41,880) - - - - (41,880)
577,313 - - - 241,600 818,913
68,042 3,479 5,363 3,295 1 83,065
1,354,834 21,925 29,215 12,430 396 1,438,822
1,422,876$ 25,404$ 34,578$ 15,725$ 397$ 1,521,887$
Page 154
192
Statistical Section
Contents Page
Financial Trends 155 - 164
Revenue Capacity 165 - 172
Debt Capacity 173 - 177
Demographic and Economic Information 178 - 180
Operating Information 181 - 183
This portion of the City of Lake Forest's Comprehensive Annual Financial Report presents detailed information as
a context for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City's overall economic condition and financial health.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time.
These schedules contain information to help the reader assess the factors affecting the City's
ability to generate its property and sales taxes.
These schedules present information to help the reader assess the affordability of the City's
current levels of outstanding debt and the City's ability to issue additional debt.
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City's financial activities take place and to help make
comparisons over time and other governments.
These schedules contain information about the City's operations and resources to help the
reader understand how the City's financial information relates to the services the City provides
and the activities it performs.
193
CITY OF LAKE FOREST
Net Position by Component
Last Ten Fiscal Years
Fiscal Years 2018 2017 2016 2015 2014
Governmental Activities
Net Investment in Capital Assets 166,607,491$ 170,568,584$ 181,481,470$ 181,056,601$ 184,270,349$
Restricted 20,193,505 15,476,976 18,506,073 15,737,797 16,860,362
Unrestricted (11,006,718) (9,068,405) (18,479,928) 26,747,317 23,689,130
Total Governmental Activities Net Position 175,794,278$ 176,977,155$ 181,507,615$ 223,541,715$ 224,819,841$
Business-type Activities
Net Investment in Capital Assets 40,729,712$ 37,504,482$ 37,582,505$ 36,617,378$ 36,163,443$
Unrestricted 8,950,670 7,696,321 8,323,401 8,941,920 9,739,336
Total Business-type Activities Net Position 49,680,382$ 45,200,803$ 45,905,906$ 45,559,298$ 45,902,779$
Primary Government
Net Investment in Capital Assets 207,337,203$ 208,073,066$ 219,063,975$ 217,673,979$ 220,433,792$
Restricted 20,193,505 15,476,976 18,506,073 15,737,797 16,860,362
Unrestricted (2,056,048) (1,372,084) (10,156,527) 35,689,237 33,428,466
Total Primary Government Net Position 225,474,660$ 222,177,958$ 227,413,521$ 269,101,013$ 270,722,620$
*Beginning in 2016, the City implemented GASB 68 which resulted in the inclusion
of a net pension liability.
Data Source
Audited Financial Statements
Page 155
194
2013 2012 2011 2010 2009
187,500,531$ 190,779,593$ 192,568,460$ 193,225,047$ 193,768,992$
16,064,099 16,499,487 3,645,693 3,001,515 3,319,974
21,126,818 19,550,532 29,683,545 25,090,240 25,867,536
224,691,448$ 226,829,612$ 225,897,698$ 221,316,802$ 222,956,502$
36,077,752$ 36,753,670$ 37,709,887$ 38,075,853$ 37,184,702$
9,880,856 8,918,142 8,513,924 8,617,858 9,577,076
45,958,608$ 45,671,812$ 46,223,811$ 46,693,711$ 46,761,778$
223,578,283$ 227,533,263$ 230,278,347$ 231,300,900$ 230,953,694$
16,064,099 16,499,487 3,645,693 3,001,515 3,319,974
31,007,674 28,468,674 38,197,469 33,708,098 35,444,612
270,650,056$ 272,501,424$ 272,121,509$ 268,010,513$ 269,718,280$
Page 156
195
Fiscal Years 2018 2017 2016 2015
Expenses
Governmental Activities
General Government 9,884,646$ 16,882,976$ 11,675,363$ 12,604,331$
Highway and Streets 9,621,569 10,923,639 9,230,548 8,839,231
Sanitation 2,585,940 2,611,231 2,208,326 2,474,355
Culture and Recreation 10,003,119 10,023,195 8,463,259 10,172,391
Public Safety 17,017,092 17,048,209 16,360,830 15,303,399
Interest 1,271,181 1,559,100 1,293,742 1,357,552
Total Governmental Activities Expenses 50,383,547$ 59,048,350$ 49,232,068$ 50,751,259$
Business-type Activities
Waterworks and sewerage 8,122,998 8,510,811 7,239,042 8,353,825
Golf 1,604,261 2,095,510 1,868,252 1,642,121
Paid Parking - - - -
Total Business-type Activities Expenditures 9,727,259 10,606,321 9,107,294 9,995,946
Total Primary Government Expenses 60,110,806$ 69,654,671$ 58,339,362$ 60,747,205$
Program Revenue
Governmental Activities
Charges for Services
General Government 5,203,210$ 8,860,169$ 8,191,440$ 5,442,475$
Highways and Streets 1,006,644 782,953 990,840 710,795
Sanitation 721,276 734,111 697,435 682,062
Culture and Recreation 3,491,365 2,810,762 3,257,796 3,156,699
Public Safety 1,992,985 1,689,547 1,552,567 1,795,521
Operating Grants and Contributions 1,298,006 1,088,579 1,368,451 1,345,670
Capital Grants and Contributions 356,178 1,174,000 280,675 468,255
Total Governmental Activities Program
Revenues 14,069,664 17,140,121 16,339,204 13,601,477
Business-type activities
Charges for Services
Waterworks and sewerage 8,083,554 7,873,741 7,477,558 8,034,469
Golf 1,480,618 1,606,661 1,759,271 1,414,217
Paid Parking - - - -
Operating Grants and Contributions - - - -
Capital Grants and Contributions - - - -
Total Business-type Activities Program
Revenues 9,564,172 9,480,402 9,236,829 9,448,686
Total Primary Government Revenues 23,633,836$ 26,620,523$ 25,576,033$ 23,050,163$
Net (Expense) Revenue
Governmental Activities (36,313,883)$ (41,908,229)$ (32,892,864)$ (37,149,782)$
Business-type Activities (163,087) (1,125,919) 129,535 (547,260)
Total Primary Government Net Expense (36,476,970)$ (43,034,148)$ (32,763,329)$ (37,697,042)$
CITY OF LAKE FOREST
Change in Net Position
Last Ten Fiscal Years
Page 157
196
2014 2013 2012 2011 2010 2009
12,311,198$ 16,176,326$ 12,080,189$ 13,321,852$ 13,974,412$ 14,928,550$
7,762,403 7,536,444 8,304,860 8,687,404 9,469,570 7,911,604
2,586,125 2,512,559 2,568,820 2,349,916 2,183,373 2,169,302
10,397,593 10,352,252 9,469,832 9,402,752 9,589,857 9,430,847
14,430,151 13,748,855 13,583,116 13,398,718 13,116,738 12,623,300
1,333,267 1,362,715 1,420,087 1,424,317 1,097,805 978,029
48,820,737$ 51,689,151$ 47,426,904$ 48,584,959$ 49,431,755$ 48,041,632$
7,476,752 8,287,297 7,985,394 8,008,372 7,882,904 7,659,138
1,554,678 1,459,394 1,371,380 1,393,869 1,345,437 1,490,115
- - - - - -
9,031,430 9,746,691 9,356,774 9,402,241 9,228,341 9,149,253
57,852,167$ 61,435,842$ 56,783,678$ 57,987,200$ 58,660,096$ 57,190,885$
4,756,948$ 4,838,151$ 4,771,863$ 4,455,844$ 4,822,344$ 4,980,144$
741,334 753,487 846,366 693,029 809,661 1,239,586
77,147 58,564 81,577 171,030 104,158 192,848
3,314,856 3,342,913 3,392,303 3,650,467 4,121,592 4,197,023
1,950,998 1,861,619 1,678,032 1,930,715 1,540,927 1,589,647
1,105,191 1,777,734 1,433,791 846,781 1,413,819 684,872
757,239 25,000 360,407 5,982,721 925,524 9,033,429
12,703,713 12,657,468 12,564,339 17,730,587 13,738,025 21,917,549
7,521,323 8,598,079 7,477,637 7,344,740 7,048,854 6,589,780
1,397,836 1,320,455 1,238,016 1,264,624 1,333,879 1,413,732
- - - - - -
- - - - - -
- - - 162,051 97,724 829,447
8,919,159 9,918,534 8,715,653 8,771,415 8,480,457 8,832,959
21,622,872$ 22,576,002$ 21,279,992$ 26,502,002$ 22,218,482$ 30,750,508$
(36,117,024)$ (39,031,683)$ (34,862,565)$ (30,854,372)$ (35,693,730)$ (26,124,083)$
(112,271) 171,843 (641,121) (630,826) (747,884) (316,294)
(36,229,295)$ (38,859,840)$ (35,503,686)$ (31,485,198)$ (36,441,614)$ (26,440,377)$
Page 158
197
Fiscal Years 2018 2017 2016 2015
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property 26,193,444$ 25,928,864$ 25,006,224$ 24,468,769$
Sales 2,105,736 2,829,607 2,889,306 2,851,103
Income and Use 2,272,639 2,306,546 2,251,828 2,386,567
Telecommunications and Utility 3,440,365 3,596,175 3,551,491 3,954,001
Real Estate Transfer Tax 1,622,900 1,398,160 1,288,175 1,224,610
Other 2,178,246 636,368 514,231 534,625
Investment Earnings 1,665,391 1,042,049 145,329 547,118
Miscellaneous - - - 73,613
Gain (loss) on sale of assets (3,874) - - -
Transfers (4,343,841) (360,000) (924,496) (168,750)
Total Government Activities 35,131,006 37,377,769 34,722,088 35,871,656
Business-type Activities
Investment Earnings 236,990$ 58,366$ 40,362$ 33,408
Other 61,835 2,450 6,033 1,621
Transfers 4,343,841 360,000 924,496 168,750
Total Business-type Activities 4,642,666 420,816 970,891 203,779
Total Primary Government 39,773,672$ 37,798,585$ 35,692,979$ 36,075,435$
Change in Net Position
Governmental Activities (1,182,877)$ (4,530,460)$ 1,829,224$ (1,278,126)$
Business-type Activities 4,479,579 (705,103) 1,100,426 (343,481)
Total Primary Government Change
in Net Position 3,296,702$ (5,235,563)$ 2,929,650$ (1,621,607)$
Data Source
Audited Financial Statements
*Starting in 2015, all taxes administered by the State and disbursed to the City are reported as intergovernmental
revenues on the face of the financial statements. They have been grouped by tax type for comparison purposes above.
CITY OF LAKE FOREST
Change in Net Position (Cont.)
Last Ten Fiscal Years
Page 159
198
2014 2013 2012 2011 2010 2009
23,744,650$ 25,051,411$ 25,428,378$ 24,739,956$ 24,383,716$ 23,067,216$
3,047,529 3,183,479 2,577,304 2,554,772 2,392,497 3,010,457
2,182,325 2,131,711 1,938,686 1,849,046 1,762,425 2,018,177
4,026,972 3,736,586 3,981,548 3,968,072 3,967,398 4,407,235
1,633,580 1,209,113 1,215,407 1,279,935 878,925 962,840
581,443 493,418 492,746 422,080 372,640 391,347
637,193 491,196 264,432 573,508 852,245 35,853
669,145 573,705 33,724 150,049 60,000 22,729
- - - - - -
(97,000) (77,100) (37,746) (102,150) (615,816) 10,111,313
36,425,837 36,793,519 35,894,479 35,435,268 34,054,030 44,027,167
38,550 37,853 51,376 58,776 64,001 169,717
- - - - - -
97,000 77,100 37,746 102,150 615,816 (10,111,313)
135,550 114,953 89,122 160,926 679,817 (9,941,596)
36,561,387$ 36,908,472$ 35,983,601$ 35,596,194$ 34,733,847$ 34,085,571$
308,813$ (2,238,164)$ 1,031,914$ 4,580,896$ (1,639,700)$ 17,903,084$
23,279 286,796 (551,999) (469,900) (68,067) (10,257,890)
332,092$ (1,951,368)$ 479,915$ 4,110,996$ (1,707,767)$ 7,645,194$
Page 160
199
Fiscal Years 2018 2017 2016 2015
General Fund
Nonspendable 150,038$ 778,160$ 1,272,224$ 1,648,832$
Restricted - - - 957,420
Unassigned 29,130,844 28,799,288 22,509,969 17,910,037
Reserved - - - -
Unreserved - - - -
Total General Fund 29,280,882 29,577,448 23,782,193 20,516,289
All other Governmental Funds
Non Spendable 28,688 536,121 408,539 381,173
Restricted 20,806,879 19,420,288 20,337,111 14,726,999
Assigned - - 1,456,053 1,448,736
Unassigned - - - (1,022,136)
Reserved - - - -
Special Revenue Funds - - - -
Capital Project Funds - - - -
Debt Service Funds - - - -
Unreserved, Reported in - - - -
Special Revenue Funds - - - -
Capital Projects Funds - - - -
Debt Service Funds - - - -
Total All other Governmental Funds 20,835,567 19,956,409 22,201,703 15,534,772
Total Governmental Funds 50,116,449$ 49,533,857$ 45,983,896$ 36,051,061$
*The City implemented GASB Statement #54 in FY2012.
Data Source
Audited Financial Statements
CITY OF LAKE FOREST
Fund Balances of Governmental Funds
Last Ten Fiscal Years
Page 161
200
2014 2013 2012*2011 2010 2009
2,126,990$ 2,775,449$ 2,159,403$ -$ -$ -$
957,420 957,420 957,420 - - -
14,530,550 11,020,723 10,601,190 - - -
- - - 2,988,884 1,071,068 2,218,570
- - - 9,239,135 9,815,220 8,618,251
17,614,960 14,753,592 13,718,013 12,228,019 10,886,288 10,836,821
- 43,333 43,333 - - -
16,127,257 15,605,203 16,171,794 - - -
1,449,284 1,598,819 1,591,600 - - -
- - - - - -
- - - - - -
- - - 4,333 43,306 128,516
- - - - - -
- - - 2,808,826 2,839,264 2,632,215
- - - - - -
- - - 9,869,178 8,209,263 6,747,544
- - - 6,189,372 3,171,421 6,538,074
- - - - - -
17,576,541 17,247,355 17,806,727 18,871,709 14,263,254 16,046,349
35,191,501$ 32,000,947$ 31,524,740$ 31,099,728$ 25,149,542$ 26,883,170$
Page 162
201
Fiscal Years 2018 2017 2016 2015
Revenues
Property Taxes 26,193,444$ 25,928,864$ 25,006,224$ 24,468,769$
Other Taxes 4,786,506 4,609,057 4,317,316 4,641,466
Intergovenmental revenues 6,331,183 6,656,768 6,680,193 6,972,923
Grants and contributions 997,289 1,419,736 1,056,523 950,823
Charges for Services 8,833,079 8,005,317 8,506,756 7,935,973
Liscenses and permits 3,232,276 5,157,398 5,222,568 2,821,066
Fines and forefeitures 345,438 321,168 260,407 287,333
Investment income 1,553,167 989,515 115,462 524,150
Miscellaneous revenue 1,831,152 841,731 779,137 790,344
Total Revenue 54,103,534 53,929,554 51,944,586 49,392,847
Expenditure
General Government 10,469,740$ 11,581,286$ 10,811,408$ 10,248,830
Highways and streets 2,354,587 3,118,461 2,157,463 2,371,461
Sanitation 2,290,986 2,311,435 2,276,433 2,235,135
Culture and recreation 8,853,547 8,532,289 8,338,284 8,457,043
Public Safety 15,520,779 15,126,874 15,090,712 14,469,408
Capital Outlay 8,746,881 5,439,469 10,992,926 7,582,668
Debt Service
Principal 1,782,156 7,906,696 1,791,579 1,623,436
Interest 1,277,596 1,639,191 1,293,634 1,400,609
Total Expenditures 51,296,272 55,655,701 52,752,439 48,388,590
Excess (Deficiency) of Revenues
over Expenditures 2,807,262 (1,726,147) (807,853) 1,004,257
Other Financing Sources (Uses)
Transfers in 4,799,274$ 7,776,661$ 2,846,321$ 2,020,085
Transfers out (7,050,020) (8,136,661) (2,895,321) (2,188,835)
Bonds issued - - 9,780,000 -
Installment note proceeds - - - -
Loan proceeds - - 830,080 -
Premium (discount) on bonds issued - - 106,384 -
Proceeds from refunding G.O. bonds - - - -
Payments for refunding G.O. bonds - - - -
Sale of capital assets 26,076 5,636,108 73,224 24,053
Total Other Financing Sources (Uses) (2,224,670) 5,276,108 10,740,688 (144,697)
Net Change in Fund Balance 582,592$ 3,549,961$ 9,932,835$ 859,560$
Debt Service
as a Percentage of Non-Capital Expenditures 6.49% 17.36% 6.54% 6.43%
CITY OF LAKE FOREST
Change in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Page 163
202
2014 2013 2012 2011 2010 2009
23,744,650$ 25,051,411$ 25,428,378$ 24,739,956$ 24,383,716$ 23,067,216$
11,471,849 10,754,307 10,205,691 10,073,905 9,433,885 10,790,056
576,125 612,357 589,960 523,185 1,304,368 684,872
962,249 1,190,377 1,039,737 1,306,195 706,250 -
7,373,500 7,319,673 7,028,800 7,427,784 7,844,119 8,295,760
2,477,338 2,450,194 2,475,739 2,246,336 2,135,888 2,117,774
297,005 368,941 372,607 409,539 372,924 387,629
610,601 462,579 225,225 531,666 815,520 (11,695)
759,384 1,225,082 730,813 1,074,576 1,374,476 1,420,815
48,272,701 49,434,921 48,096,950 48,333,142 48,371,146 46,752,427
10,112,393 14,242,768 10,313,031 11,929,446 12,226,189 12,778,200
2,293,840 2,044,225 2,139,656 2,449,911 3,897,758 2,567,220
2,212,166 2,193,091 2,228,844 2,194,511 2,056,528 2,096,044
8,686,298 9,282,695 8,463,547 8,559,331 8,816,962 8,511,075
14,299,583 13,826,732 13,723,801 13,291,727 13,062,453 12,820,200
5,527,772 4,586,574 6,641,923 6,348,572 11,376,490 28,537,234
1,400,950 1,377,736 2,531,876 15,659,313 2,877,662 2,954,681
1,319,276 1,392,342 1,667,372 1,284,755 1,173,967 694,355
45,852,278 48,946,163 47,710,050 61,717,566 55,488,009 70,959,009
2,420,423 488,758 386,900 (13,384,424) (7,116,863) (24,206,582)
3,224,306 2,829,243 2,296,270 1,844,410 1,847,105 5,425,090
(3,321,306) (2,906,343) (2,334,016) (1,946,560) (2,462,921) (4,454,665)
- - - 18,090,000 3,680,000 -
- - - - 2,300,000 10,700,000
- - - - - -
26,093 - 120,828 279,130 19,051 -
9,715,000 - 5,690,000 - - -
(9,665,000) - (5,769,025) - - -
791,038 64,549 34,055 1,067,630 - 75,000
770,131 (12,551) 38,112 19,334,610 5,383,235 11,745,425
3,190,554$ 476,207$ 425,012$ 5,950,186$ (1,733,628)$ (12,461,157)$
6.17% 5.85% 8.31% 8.62% 8.62% 8.08%
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CITY OF LAKE FORESTAssessed Value and Actual Value of Taxable PropertyLast Ten Levy Years Total Estimated Estimated Tax Total Taxable Direct Actual ActualLevy Residential Commercial Industrial Other Increment Assessed Tax Taxable TaxableYear Property Property Property Property Financing Value Rate Value Value 2008 2,674,566,048 217,608,832 79,283 5,817,809 60,603,515 2,958,675,487 0.8700 8,876,026,461 33.333%2009 2,609,955,147 214,117,162 71,603 5,887,945 60,622,651 2,890,654,508 0.9020 8,671,963,524 33.333%2010 2,452,291,451 203,193,623 66,933 5,871,505 56,123,585 2,717,547,097 0.9900 8,152,641,291 33.333%2011 2,302,061,004 203,074,638 70,382 5,409,080 54,464,919 2,565,080,023 1.0350 7,695,240,069 33.333%2012 2,166,702,992 207,360,589 65,556 3,918,002 - 2,378,047,139 1.1480 7,134,141,417 33.333%2013 2,047,760,158 200,625,492 62,064 5,099,690 - 2,253,547,404 1.2480 6,760,642,212 33.333%2014 2,047,998,906 196,562,054 61,541 5,846,135 - 2,250,468,636 1.2741 6,751,405,908 33.333%2015 2,105,361,682 196,233,065 46,548 6,294,764 - 2,307,936,059 1.2794 6,923,808,177 33.333%2016 2,226,672,717 209,668,706 49,445 6,591,173 90,630 2,443,072,671 1.2268 7,329,218,013 33.333%2017 2,309,650,453 215,722,819 51,936 6,841,694 1,690,541 2,533,957,443 1.2366 7,601,872,329 33.333%Data SourceOffice of the County ClerkNote : Property is assessed at 33 1/3% of actual value; property tax rates per $100 of assessed valuation. The City's TIF Increment Financing district expired for 2012 A new City TIF Increment Financing district initiated for 2016Page 165204
CITY OF LAKE FORESTProperty Tax Rates - Direct and Overlapping GovernmentsBased on Shields TownshipLast Ten Levy Years2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Bonds 0.086 0.090 0.096 0.068 0.071 0.088 0.090 0.067 0.059 0.060Corporate 0.449 0.405 0.446 0.483 0.544 0.580 0.590 0.619 0.603 0.600Firemen's Pension 0.028 0.034 0.037 0.041 0.046 0.052 0.054 0.053 0.050 0.061IMRF 0.052 0.054 0.059 0.032 0.035 0.037 0.038 0.037 0.035 0.035Library 0.101 0.105 0.116 0.126 0.141 0.152 0.155 0.153 0.146 0.145Library Sites & Building 0.013 0.013 0.014 0.015 0.016 0.017 0.017 0.017 0.016 0.016Parks/Park Maintenance 0.050 0.097 0.106 0.114 0.123 0.191 0.194 0.196 0.187 0.184Playgroung & Recreation ** 0.042 0.043 0.046 0.050 0.055 0.000 0.000 0.000 0.000 0.000Police Pension 0.039 0.050 0.057 0.060 0.066 0.076 0.080 0.082 0.078 0.083Recreation for Handicapped Rec. 0.010 0.011 0.013 0.014 0.016 0.018 0.018 0.018 0.018 0.018Social Security 0.032 0.035 0.037 0.038 0.037 0.035 0.035City Direct Rates * 0.870 0.902 0.990 1.035 1.148 1.248 1.274 1.279 1.227 1.237Overlapping RatesCollege of Lake County 0.196 0.200 0.218 0.240 0.272 0.296 0.306 0.299 0.285 0.281County of Lake0.453 0.4640.505 0.554 0.608 0.663 0.682 0.663 0.632 0.622Lake County Forest Preserve0.199 0.2000.198 0.201 0.212 0.218 0.210 0.208 0.193 0.187North Shore Sanitary District0.121 0.1240.136 0.150 0.150 0.164 0.169 0.166 0.157 0.153School District 67, Elem.0.965 0.9981.095 1.186 1.322 1.424 1.452 1.429 1.367 1.355School District 115, High School1.001 1.0691.101 1.191 1.322 1.420 1.450 1.409 1.329 1.314Township0.050 0.0480.039 0.043 0.036 0.037 0.039 0.038 0.036 0.035Township Road and Bridge0.019 0.0200.023 0.026 0.029 0.032 0.033 0.032 0.031 0.030Total tax rate3.874 4.025 4.305 4.626 5.099 5.502 5.615 5.523 5.257 5.214 City's share of total tax rate22% 22% 23% 22% 23% 23% 23% 23% 23% 24%Data SourceOffice of the County Clerk - Shields TownshipLake Forest lies within five townships - Moraine, Shields, Vernon, West Deerfield and Libertyville. Therefore, the tax rates for support of the Township government and for theTownship Road and Bridge purposes vary. Parts of Shields Township in Lake Forest lie in the Lake Bluff Park District. All of Moraine Township is in Lake Forest andparts of Shields and West Deerfield Townships in Lake Forest lie in the North Shore Sanitary District.* Excludes rates for the Special Service Areas* Includes the City's component unit, Lake Forest Library** Parks and Playgrounds combined in 2013Page 166205
CITY OF LAKE FOREST
Principal Property Taxpayers
Current Year and Nine Years Ago
Percentage Percentage
of Total of Total
City City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Valuation Value Rank Valuation
Hospira Inc 16,120,969$ 1 0.64% 23,152,678$ 1 0.78%
Abbot Laboratories 14,427,525 2 0.57%
Lake Forest Place LLC 12,567,495 3 0.50%
Pactiv Corporation 9,402,589 4 0.37%
Trustmark Insurance Co 8,628,372 5 0.34% 7,830,565 6 0.26%
Northwestern Lake Forest Hospital 7,779,849 6 0.31% 8,074,913 5 0.27%
Lake Forest Landmark Co. LLC 7,392,254 7 0.29% 7,465,122 7 0.25%
Lake Forest Investments 7,136,658 8 0.28%
Lake Forest Landmark II 6,294,894 9 0.25%
Riggs & Co A Division of Riggs Bank N A 5,967,813 10 0.24%
The Presbyterian Home 19,603,405 2 0.66%
CBIZ Property Tax Solutions 13,566,806 3 0.46%
Lake Products, Inc 13,488,063 4 0.46%
James Campbell Company, LLC 6,894,807 8 0.23%
Shawgate Lake Forest, LLC 5,987,003 9 0.20%
Northern Trust Company 5,252,962 10 0.18%
95,718,418$ 3.78% 111,316,324$ 3.75%
Data Source
Office of the County Clerk
Note: Every effort has been made to seek out and report the largest taxpayers. However, many of the taxpayers contain
multiple parcels, and it is possible that some parcels and their valuations have been overlooked.
2018 Column is 2017 Assessed Valuation
2009 Column is 2008 Assessed Valuation
2018 2009
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206
CITY OF LAKE FOREST
Property Tax Levies and Collections
Last Ten Levy Years
Subsequent
Levy Percentage Year Taxes Percentage
Year Tax Levied Amount of Levy Collections Received of Levy
2008 25,213,226 25,166,378 99.81% 8,545 25,174,923 99.85%
2009 25,526,887 25,468,324 99.77% 18,421 25,486,745 99.84%
2010 26,348,093 26,304,316 99.83% 8,193 26,312,509 99.86%
2011 25,984,866 25,911,115 99.72% 135 25,911,250 99.72%
2012 27,299,981 27,198,985 99.63% 384 27,199,369 99.63%
2013 28,124,272 28,002,008 99.57% 14,464 28,016,472 99.62%
2014 28,673,693 28,608,680 99.77% 14,056 28,622,736 99.82%
2015 29,528,749 29,468,310 99.80% 10,693 29,479,003 99.83%
2016 29,970,699 29,839,108 99.56% 781 29,839,889 99.56%
2017 31,313,227 N/A N/A N/A N/A N/A
Data Source
Lake County Treasurer and City
Note: Property is assessed at 33 1/3 % of actual value.
Collected within the
Fiscal Year after the Levy
Total Collections
Per Levy
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207
CITY OF LAKE FORESTTax Extensions for City FundsLast Ten Levy Years2008 2009 2010 2011 2012 2013 2014 2015 2016 2017General 0.449 0.405 0.446 0.483 0.544 0.580 0.590 0.619 0.603 0.6000.052 0.054 0.059 0.064 0.070 0.074 0.076 0.074 0.070 0.070Firefighter Pension0.028 0.034 0.037 0.041 0.046 0.052 0.054 0.053 0.050 0.061Police Pension0.039 0.050 0.057 0.060 0.066 0.076 0.080 0.082 0.078 0.083Parks and Recreation0.092 0.140 0.152 0.164 0.178 0.191 0.194 0.196 0.187 0.184Special Recreation0.010 0.011 0.013 0.014 0.016 0.018 0.018 0.018 0.018 0.018General Obligation Bond 1998 B- - - - - - - - - - General Obligation Bond 20000.023 0.023 0.025 - - - - - - - General Obligation Bond 2001 B0.004 0.004 0.004 - - - - - - - General Obligation Bond 2003 A0.035 0.036 - - - - - - - - General Obligation Bond 20080.024 0.022 0.032 0.034 0.036 0.037 0.037 0.026 - - General Obligation Bond 2009- 0.005 0.011 0.011 0.012 0.013 0.013 0.009 0.012 0.012General Obligation Bond 20100.000 0.020 0.023 0.023 0.012 0.025 0.015 0.020 0.020General Obligation Bond 2013- 0.000 0.000 0.000 0.000 0.026 0.015 0.010 0.018 0.018General Obligation Bond 2015- - - - - - - 0.008 0.009 0.010Total tax rate0.756 0.784 0.856 0.894 0.991 1.079 1.102 1.110 1.065 1.076Data SourceOffice of the County Clerk The tax rate for the City's component unit, Lake Forest Library is excluded from this table.This table excludes the tax rates for the Special Service Areas.IMRF/Social SecurityPage 169208
CITY OF LAKE FORESTSales Tax Base and Number of Principal PayersTaxable Sales by Category - .5% Sales TaxLast Ten Calendar Years2008 2009 2010 2011 2012 2013 2014 2015 2016 2017General Merchandise10,741$ 8,492$ 8,460$ 36,478$ 12,219$ 9,722$ 7,005$ 7,471$ 5,072$ 4,358$ Food97,870 83,567 89,338 90,613 91,999 93,952 105,771 96,009 92,936 93,838 Drinking and Eating Places147,973 127,679 133,028 140,639 155,188 165,386 180,023 163,447 173,473 182,278 Apparel54,674 55,300 51,968 53,727 64,317 68,135 68,291 75,606 73,785 72,540 Furniture & H.H. & Radio51,881 42,526 38,958 10,187 37,536 38,821 39,494 36,526 32,774 28,424 Lumber, Building, Hardware26,223 20,405 19,010 (6,528) 6,867 9,862 - - 7,537 8,238 Automobile and Filling Stations 37,349 27,399 35,443 38,209 38,900 37,025 34,895 28,267 26,735 30,895 Drugs and Miscellaneous Retail 117,787 178,470 91,397 105,512 81,022 110,554 117,262 118,740 117,224 102,558 Agriculture and All Others100,902 88,052 94,649 97,776 110,446 121,651 105,139 129,721 116,945 105,670 Manufacturers109,291 21,860 14,322 (4,963) - - 7,095 (3,818) - - Censored categories- - - - - - - - - - Total754,691$ 653,750$ 576,572$ 561,650$ 598,494$ 655,108$ 664,975$ 651,969$ 646,481$ 628,799$ Total Number of PayersN/AN/AN/AN/AN/AN/AN/AN/AN/AN/ACity direct sales tax rate0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%Data SourceIllinois Department of RevenueNote: Blank categories have less than 4 taxpayers, therefore no data is shown to protect the confidentiality of individual taxpayers.Effectively July 2003, an additional .5% non home rule sales tax was collected.The City of Lake Forest became a home rule community in November 2004.Page 170209
CITY OF LAKE FORESTSales Tax Base and Number of Principal PayersTaxable Sales by Category - 1% Sales TaxLast Ten Calendar Years2008 2009 2010 2011 2012 2013 2014 2015 2016 2017General Merchandise 21,504$ 16,984$ 17,248$ 72,955$ 24,726$ 19,656$ 14,010$ 14,930$ 11,412$ 10,496$ Food 629,087 562,455 570,803 579,914 585,517 593,446 673,803 591,893 564,049 550,591 Drinking and Eating Places 302,523 260,953 271,753 286,472 317,291 338,382 364,221 329,303 350,024 372,173 Apparel 109,349 110,600 103,935 107,453 128,633 136,270 136,582 151,212 147,576 145,141 Furniture & H.H. & Radio 103,763 85,052 77,915 20,373 75,071 77,642 78,988 73,061 65,571 56,848 Lumber, Building, Hardware 52,445 40,810 38,019 (13,037) 13,742 19,724 - - 15,076 16,479 Automobile and Filling Stations 130,459 109,080 150,101 138,744 146,865 241,339 178,178 133,684 139,764 141,260 Drugs and Miscellaneous Retail 438,917 546,202 322,376 371,420 400,096 433,159 430,482 414,407 431,966 399,115 Agriculture and All Others 219,358 198,803 267,227 254,225 274,807 285,401 255,189 295,974 271,061 246,697 Manufacturers218,715 43,909 28,947 (9,729) - - 14,415 (5,107) - - Censored categories- - - - - - - - - - Total2,226,120$ 1,974,848$ 1,848,324$ 1,808,790$ 1,966,748$ 2,145,019$ 2,145,868$ 1,999,357$ 1,996,499$ 1,938,800$ Total Number of Payers849 843 663647637637673687687687City direct sales tax rate1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%Data SourceIllinois Department of RevenueNote: Blank categories have less than 4 taxpayers, therefore no data is shown to protect the confidentiality of individual taxpayers.The categories, Lumber, Bldg. and Hardware and General Merchandise became a censored status in the 2nd quarter of 2008.Page 171210
CITY OF LAKE FOREST
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
City Special
Fiscal Direct State Metra County
Year Rate Rate Rate Rate Total
2009 1.50% 5.00% 0.50% 0.50% 7.50%
2010 1.50% 5.00% 0.50% 0.50% 7.50%
2011 1.50% 5.00% 0.50% 0.50% 7.50%
2012 1.50% 5.00% 0.50% 0.50% 7.50%
2013 1.50% 5.00% 0.50% 0.50% 7.50%
2014 1.50% 5.00% 0.50% 0.50% 7.50%
2015 1.50% 5.00% 0.50% 0.50% 7.50%
2016 1.50% 5.00% 0.50% 0.50% 7.50%
2017 1.50% 5.00% 0.50% 0.50% 7.50%
2018 1.50% 5.00% 0.50% 0.50% 7.50%
Data Source
City records
The City of Lake Forest became a home rule community in November 2004.
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211
CITY OF LAKE FORESTRatios of Outstanding Debt by TypeLast Ten Fiscal YearsGovernmental Activities Business-Type Activities Ratio of Total Perecentage TotalFiscal General Installment General Total Outstanding Debt of OutstandingYear Obligation Purchase Obligation RevenuePrimary To Equalized Personal Debt PerEnded Bonds Contracts Bonds Bonds Government Assessed Valuation* Income* Capita*2009 24,188,066 11,166,667 26,280,000 - 61,634,733 2.08% 3.70% 2,853.46 2010 25,457,071 13,000,000 24,925,000 - 63,382,071 2.19% 3.81% 2,934.36 2011 40,887,758 - 23,525,000 - 64,412,758 2.37% 4.31% 3,324.53 2012 38,580,882 - 22,804,000 - 61,384,882 2.39% 4.11% 3,168.25 2013 37,203,146 - 21,060,000 - 58,263,146 2.45% 3.90% 3,007.13 2014 35,852,197 - 19,245,000 - 55,097,197 2.44% 3.69% 2,843.73 2015 34,258,902 - 17,602,838 - 51,861,740 2.30% 3.47% 2,676.73 2016 42,510,566 - 15,679,654 - 58,190,220 2.52% 3.90% 3,003.37 2017 34,775,542 - 13,737,111 - 48,512,653 1.99% 3.25% 2,503.88 2018 33,460,538 - 21,111,864 - 54,572,402 2.23% 3.65% 2,816.64 Note: Details of the City's outstanding debt can be found in the notes to the financial statements.* See the Schedule of Demographic and Economic Statistics for equalized assessed valuation of property, population data and personal income.Page 173212
CITY OF LAKE FOREST
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Percentage of
Less: Amounts Estimated
General Available Actual Taxable
Fiscal Obligation In Debt Value of Per
Year Bonds Service Fund Total Property* Capita
2009 50,468,066 2,632,215 47,835,851 0.54%2,214.62
2010 50,382,071 2,839,265 47,542,806 0.55%2,201.06
2011 64,412,758 2,808,827 61,603,931 0.76%3,179.56
2012 61,384,882 2,316,219 59,068,663 0.77%3,048.71
2013 58,263,146 2,407,275 55,855,871 0.78%2,882.88
2014 55,097,197 1,144,118 53,953,079 0.80%2,784.68
2015 51,861,740 1,316,900 50,544,840 0.75%2,608.77
2016 58,190,220 1,201,300 56,988,920 0.82%2,941.36
2017 48,512,653 1,438,823 47,073,830 0.64%2,429.62
2018 54,572,402 1,521,887 53,050,515 0.70%2,738.09
Note: Details of the City's outstanding debt can be found in the notes to the financial statements.
* See the Schedule of Assessed Value and estimated Actual Value of Taxable Property
for property value data.
Page 174
213
CITY OF LAKE FOREST
Direct and Overlapping Governmental Activities Debt
As of April 30, 2018
Percentage City of
Debt Applicable Lake Forest
Gross to the City of Share
Governmental unit Debt Lake Forest* of Debt
Lake County 182,235,000$ 9.94% 18,114,159$
Lake County Community College #532 63,745,000 10.48% 6,680,476
Lake County Forest Preserve District 255,895,000 9.94% 25,435,963
School District #67 1,806,829 100.00% 1,806,829
School District #103 6,010,000 0.01% 601
High School District #115 32,215,000 79.50% 25,610,925
Subtotal, overlapping debt 541,906,829 77,648,953
City of Lake Forest direct debt 33,460,538 100.00% 33,460,538$
Total direct and overlapping debt 575,367,367$ 111,109,491$
Source: Lake County Clerk
* Determined by ratio of assessed valuation of property subject to taxation in the City of
Lake Forest to valuation of property subject to taxation in overlapping unit.. The Percentage of debt is calculated
by the percentage of the City's EAV in relation to the overlapping government's EAV. The gross debt is found on the
Lake County website.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the
portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Lake Forest. This process
recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by the residents and
businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the
debt, of each overlapping government.
Page 175
214
CITY OF LAKE FORESTLegal Debt Margin InformationLast Ten Fiscal Years2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Debt limit N/A N/A N/A N/A N/A N/A N/A N/A N/A N/ATotal net debt applicable to limit N/A N/A N/A N/A N/A N/A N/A N/A N/A N/ALegal debt margin N/A N/A N/A N/A N/A N/A N/A N/A N/A N/ATotal net debt applicable to the limit as a percentage of debt limit N/A N/A N/A N/A N/A N/A N/A N/A N/A N/ANote: Legal debt margin from 1997-2004 was 8.625% of assessed value.* City of Lake Forest achieved home rule status in November 2004. To date the General Assembly has set no limits for home rule municipalities.Page 176215
CITY OF LAKE FOREST
Pledged Revenue Coverage
Last Ten Fiscal Years
Less:Net
Fiscal Gross Operating Available Debt Service
Year Revenue Expenses Revenue Principal Interest Coverage
2009**9,901,537 6,738,037 3,163,500 1,265,000 1,168,738 1.30
2010 8,446,734 5,397,283 3,049,451 1,358,325 1,126,001 1.23
2011 8,690,738 5,609,379 3,081,359 1,400,000 1,071,748 1.25
2012 8,767,029 6,358,960 2,408,069 1,651,000 661,906 1.04
2013 9,956,387 6,938,272 3,018,115 1,744,000 482,866 1.36
2014 9,043,227 5,406,022 3,637,205 1,815,000 433,125 1.62
2015 8,918,081 5,445,461 3,472,620 1,847,000 402,951 1.54
2016 10,190,948 5,826,164 4,364,784 1,877,000 373,266 1.94
2017 9,881,831 6,438,798 3,443,033 1,902,000 339,386 1.54
2018 10,022,069 5,644,942 4,377,127 1,952,000 544,461 1.75
Note: Details of the City's outstanding debt can be found in the notes to the financial statements.
Water Charges and Other includes investment earnings but excludes sale of property and grants
Operating expenses does not include debt service, depreciation or reserve requirements
** In FY2009, the Paid Parking Fund was closed to the General Fund. Debt payments will be paid from a new
Debt Service Fund.
Waterworks and Sewerage and Golf Course Bonds
Page 177
216
CITY OF LAKE FOREST
Demographic and Economic Information
Last Ten Fiscal Years
Equalized Per
Accessed Per Capita
Fiscal Valuation Capita Personal Personal Unemployment
Year Population (EAV) EAV Income Income Rate
2009 21,600 (E) 2,958,675,487 136,976 1,665,187,200 77,092 3.9%
2010 21,600 (E) 2,890,654,508 133,827 1,665,187,200 77,092 5.8%
2011 * 19,375 (A) 2,717,547,097 140,260 1,493,657,500 77,092 7.5%
2012 * 19,375 (A) 2,565,080,023 132,391 1,493,657,500 77,092 6.8%
2013 * 19,375 (A) 2,378,047,139 122,738 1,493,657,500 77,092 6.7%
2014 * 19,375 (A) 2,253,547,404 116,312 1,493,657,500 77,092 6.7%
2015 * 19,375 (A) 2,250,468,636 116,153 1,493,657,500 77,092 5.4%
2016 * 19,375 (A) 2,307,936,059 119,119 1,493,657,500 77,092 4.7%
2017 * 19,375 (A) 2,443,072,671 126,094 1,493,657,500 77,092 4.6%
2018 * 19,375 (A) 2,533,957,443 130,785 1,493,657,500 77,092 3.9%
(A) Actual
(E) Estimate by City of Lake Forest
Data Source
City records, Department of Labor and Office of the County Clerk.
2010 Census information for Per Capita Personal Income was not available.
* The State of Illinois revised the annual unemployment rates for small communities back to 2010 in 2014
Page 178
217
CITY OF LAKE FORESTPrincipal EmployersCurrent Year and Nine Years Ago% of % ofTotal City Total CityEmployer Employees Rank Population EmployeesRank PopulationNorthwest Lake Forest Hospital 1,488 1 7.68% 1,600 1 7.44%Hospira Inc.- 1,350 26.28%Pfizer** 2Abbott721 3 3.72%Trustmark Insurance Company 704 4 3.63% 814 33.79%TAP Pharmaceutical Products 804 43.74%Lake Forest College excludes student employees460 5 2.37% 514 52.39%Pactiv Corporation 329 6 1.70% 470 62.19%Lake Forest H.S. District 115 teacher, support staff317 7 1.64% 300 91.40%Lake Forest Elem. S.D. No. 67 314 8 1.62% 321 71.49%Packaging Corporation of America282 9 1.46%City of Lake Forest210 10 1.08% 253 101.18%Brunswick Corporation Packaging Corp- 0.00% 308 81.43%119776240Data SourceCity staff contacted companies via mail.** No response received 2018 2009Page 179218
CITY OF LAKE FORESTFull-Time Equivalent EmployeesLast Ten Fiscal YearsFunction/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018General GovernmentAdministration 30 29 26 25 25 25.0 25.0 25.0 25.4 23.5Community Development 18 15 12.5 12.5 13.0 13.0 13.0 13.0 13.0 13.0Public SafetyFire ProtectionFirefighters 37 36 34 33 33 33 33 33 33 32Administrative 1.5 2.5 2.5 2.5 2.0 2.0 2.0 2.0 2.0 2.0PoliceOfficers 43 41.5 40 40 40 40 40 40 40 40Civilians 18.5 18.5 17.5 18.0 18.0 18.0 18.0 8.0 9.0 7.0Public WorksPublic Works Administration 5 5 5 4 4 4 4 4 4 4Building Maintenance 6 6 6 6 6 7 7 7 7 7Engineering 7 7 6 5 5 5 5 5 5 5Streets 8 8 8 7 7.5 7.5 7.5 7.5 8.0 8.0Sanitation 12 12 12 12 11.5 10.5 10.5 10.5 10.0 10.0Forestry 9 9 0 0 0 0 0 0 0 0Fleet (vehicle) Maintenance 5 7 6 6 6 6 6 6 6 6WaterWater Plant 9 9 8 7 7 6.5 6.5 6.5 6.5 6.5Water and Sewer 10 10 10 10 10 8.5 8.5 8.5 8.5 8.5Parks 7.25 7.25 16.4 15.4 15.4 15.4 15.4 15.4 15.0 15.0Recreation 17.5 17.5 17.4 15.4 15.4 15.4 15.4 15.4 16.0 16.0Golf Course 4.25 3.25 3.2 3.2 2.2 2.2 2.2 2.2 0.0 0.0Cemetery 2 2 2 2 2 2 2 2 2 3Senior Resources 3 3 3 3 3 3 3 3 3 3Sub - total City 253 248.5 235.5 227 226 224 224 214 213.4 209.5Library 29 27.24 29.6 27.9 27.8 28.2 28.2 29.2 30.5 30.5Total all 282 275.74 265.1 254.9 253.8 252.2 252.2 243.2 243.9 240Data SourceCity Departments and employee totals as of April 30th Full-Time-Equivalent Budgeted Employees as of April 30Page 180219
CITY OF LAKE FORESTOperating Indicators Last Ten Fiscal YearsFunction/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018General GovernmentCity ClerkReal Estate Transfer Tax (1)Number of Transactions 183 261 293 297 382 440 394 355 361 425Rebates Issued23 30 37 37 40 6740443740Birth Certificates Issued2,690 2,751 1,940 2,821 2,675 2,250 2,556 2,575 2,474 2,807 Passports Issued (2)89 108 4829000000Community DevelopmentBuilding permits issued3,142 2,610 3072 3451 3197 3418 3667 3855 3632 3753Residential construction23 4 7 117 132027219Commercial construction3 1 01211114Building inspections conducted9,284 8,060 8392 8645 8925 8651 9657 11009 11707 10798Public SafetyFire protectionI.S.O. rating4 4 44444433Number of calls answeredEMS1,558 1,041 1,211 1,607 1,726 1,574 1,785 1,712 1,923 1,909 Fire1,759 1,233 1,177 1,734 1,403 1,497 1,503 1,367 1,385 1,448 Police (calendar year)Non traffic arrests449 424 385 335 237 191 89 166 129 76 Parking violations9,626 8,472 8,757 7,114 7,013 5,979 5,250 3,907 5,396 4,325 Traffic violations5,320 3,190 2,997 2,028 2,220 1,877 1,741 1,985 1,718 949 Public WorksStreetsStreet resurfacing (miles) (calender year)3.08 5.76 6.57 7.09 5.92 5.00 5.50 2.40 3.28 2.63Number of snow eventsSalting 8 14 15 14 23 2721241510Plowing25 15 20 12 12 212010510Inches of snow72 56 60 21 36 4850242245SanitationRefuse collection customers6,361 6,361 6,471 6,471 6,472 6,462 6,654 6,295 6,467 6,467 Parks and Recreation (3)Fitness Number of programs348 349 334 322 264 336 181 346 215 200 Units of participation1,648 1,355 1,393 1,196 1,060 1,587 1,216 1,271 1,473 1,430 AthleticsNumber of programs213 278 157 309 283 270 341 168 275 237 Units of Participation3,253 3,148 2,416 2,932 2,704 2,524 2,282 1,348 2,006 2,026 Lakefront, Early Childhood Education and Lifetime ActivitiesNumber of programs307 306 420 395 319 294 126 130 176 161 Units of participation1,541 1,402 1,344 1,424 1,576 1,380 752 1,393 1,221 1,385 Cultural Arts/Special EventsNumber of programs338 292 320 270 306 286 87 147 286 246 Units of participation2,536 2,274 2,262 2,008 1,972 1,999 1,329 1,579 4,133 4,743 Page 181220
CITY OF LAKE FORESTOperating Indicators (Continued)Last Ten Fiscal YearsFunction/Program 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Wildlife Discovery Center, Ridge Teams Course and AdventureNumber of programs 176 10 124 104 37 4720202634Units of participation969 772 627 582 301 360 2263 2802 3685 2148Developed parks and recreation areas10 10 10 10 10 1010111111Developed park acreage395.5 395.5 415 404 404 404 404 405 405 405Sites with playgrounds8 8 88999999Sites with baseball diamonds7 7 78888888Sites with soccer fields7 7 77777777Sites with basketball standards4 4 55555555Sites with tennis courts6 6 66666666Deer Path Golf CourseSize18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holesRounds of Play35,494 35,079 32,664 31,949 30,321 29,435 27,956 29,445 27,101 24,631 Daily fee15,500 15,839 15,102 14,466 13,646 17,449 17,646 20,478 19,755 18,660 Seasonal19,994 19,240 17,564 17,483 16,675 11,986 10,310 8,967 7,346 5,971 WaterNew Connections (tap-ons)39 16 19 22 20 2833663023Meters in operation6,771 6,774 6,761 6,755 6,754 6,751 6,764 6,810 6,854 6,854 Meters connected to sewerage system6,550 6,570 6,570 6,583 6,584 6,587 6,577 6,645 6,718 6,778 Average daily consumption (MGD)3.737 3.611 3.669 3.759 4.202 3,652 3,250 3,162 3,499 3,550 Peak daily consumption (MGD)9.883 9.389 8.982 11.805 10.298 8.611 7.345 8,268 8,315 8,926Rated daily pumping capacity (MGD)14 14 14 14 14 1414141414Total gallons pumped during fiscal year(in millions)1,441.7 1,321.1 1,336.5 1,372.0 1,534.0 1,332.8 1,187.6 1,157.2 1,277.0 1,296.0 Municipal paid parking facilitiesLong- term parking spacesMiscellaneous lots813 813 813 813 813 813 813 813 813 813 Union Pacific (CBD district)98 98 98 98 98 98 98 98 98 98 Metra (Telegraph Road)502 502 502 502 502 502 502 502 502 502 Short-term parking spaces341 341 341 341 341 341 341 341 341 341 Component UnitLibrary servicesBooks and non print materials143,518 142,654 145,496 145,539 147,330 148,318 146,214 146,153 221,568 248,598 Registered borrowers14,490 15,145 15,645 16,200 15,160 15,403 15,440 15,460 15,518 13,588 Fiscal yearbooks, items or materials circulation406,998 488,056 465,927 485,450 457,632 450,876 410,852 383,561 376,144 551,232 Data SourceCity departments(1) Collection of real estate transfer tax began in July 2006 (FY2007). (2) The City began to issue passports in FY2003 and stopped in FY2012.(3) a. Fitness data does not include Fitness Center memberships. b. Units of participation may include an individual participant more than once.N/A equals data not availablePage 182221
CITY OF LAKE FORESTCapital Asset StatisticsLast Ten Fiscal YearsFunction/Program2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Public SafetyPoliceStations1 1 1 1 1 1 1 1 1 1 Vehicles23 23 23 23 25 23 23 21 24 24 Fire protectionStations2 2 2 2 2 2 2 2 2 2 Vehicles14 14 14 14 14 17 15 17 17 15 Public WorksBridgesVehicle14 14 14 14 14 14 14 14 14 14 Pedestrian7 7 7 7 7 7 7 7 7 7 StreetsStreets (centerline miles) 119.00 119.00 119.00 119.00 119.00 119.24 119.24 119.24 119.24 119.24StreetlightsGas438 438 438 438 438 438 438 438 438 438 Electric1,460 1,473 1,526 1,526 1,526 1,536 1,570 1,570 1,570 1,570 Storm sewer (miles)218.29 219.17 219.35 219.41 219.41 219.41 219.41 219.43 219.43 219.46 Parks and RecreationAcreage395.5 395.5 415 404 404 404 404 405 405 405 WaterWater mains (miles)165.25 165.25 165.25 165.25 165.25 165.79 166.44 166.44 166.89 167.68 Fire hydrants1,362 1,362 1,362 1,362 1,362 1,362 1,511 1,511 1,511 1,519 WastewaterSanitary sewers (miles) 138.71 138.90 138.90 138.95 138.90 138.95 138.95 139.43 139.43 140.25 Data SourceCity departmentsN/A = data not availablePage 183222
The City of Lake Forest
CITY COUNCIL
Proceedings of the Monday, October 15, 2018
City Council Meeting - City Council Chambers
CALL TO ORDER AND ROLL CALL: Honorable Mayor Lansing called the meeting to order at 6:57pm, and the
Assistant to the City Manager, Mike Strong called the roll of Council members.
Present: Honorable Mayor Lansing, Alderman Beidler, Alderman Morris, Alderman Newman, Alderman
Rummel, Alderman Reisenberg, Alderman Preschlack, Alderman Moreno and Alderman Buschmann.
Absent: None.
Mayor Lansing called the meeting to order 6:57pm
CALL TO ORDER AND ROLL CALL
PLEDGE OF ALLEGIANCE was recited by all those present in the Chamber.
REPORTS OF CITY OFFICERS
COMMENTS BY MAYOR
A. Proclamation for the History Center of Lake Forest and Lake Bluff Grand Opening
Mayor Lansing read a proclamation and presented it to Janice Hack, Executive Director of the History Center
of Lake Forest – Lake Bluff.
COMMENTS BY CITY MANAGER
A. Community Spotlight
- Janice Hack, Executive Director, History Center of Lake Forest – Lake Bluff
Janice Hack, Executive Director, gave an overview of the changes occurring at the History Center of Lake
Forest – Lake Bluff including the grand opening of the new facility, programs, events, and the various
services that the History Center offers.
B. Deerpath Golf Course Update
- Vince Juarez, General Manager, Deerpath Golf Course
Vince Juarez, General Manager, Deerpath Golf Course, gave an overview of the 2018 season at the golf
course including updates on the course utilization, capital renovations and course improvements,
concessions, and previewed the 2019 golf season.
C. Comprehensive Plan Updates
City Manager Robert Kiely gave an update on the status of the Comprehensive Plan working group
committing that is investigating the Waukegan Road/Settler’s Square commercial area. He stated that the
Committee will be hosting a public engagement workshop on October 25, from 6:00pm – 8:30pm at the Fire
Station 2 on Telegraph Road.
COMMITTEE REPORTS
PUBLIC WORKS
223
Proceedings of the Monday, October 15, 2018
Regular City Council Meeting
1. Consideration of Alternative Design Options and Funding Approaches Relating to Forest Park
and the North Beach Access Road Bluff
Robert Kiely, City Manager, Michael Thomas, Director of Public Works, Sally Swarthout, Director of Parks &
Recreation, and Chuck Myers, Superintendent of Parks/Forestry, gave an overview to date along with
proposed options for the Forest Park Bluff and North Beach Access Road project. The City Council had
lengthy discussion regarding the alternatives, impact on vegetation to the bluff, stormwater management,
and continual monitoring of the area.
Public Comment: Resident Bob Crawford expressed his gratitude to the City Council for the thoughtful
discussion on the issue.
COUNCIL ACTION: Approval of the Public Works Committee Recommendation of an Agreement for
Design & Bidding Assistance and Endorsement of a Design Option, Bidding Process, and Timeline for the
Forest Park Bluff Failure Project as follows:
1. Direct staff to pursue repair of the NBAR bluff per design option ______.
2. Per Section 9.0A of the City’s Purchasing Directive (Specially Authorized Waiver) approve an
agreement with AECOM in the amount of $___________ for design and construction engineering
services based upon option ___________.
3. Per Section 9.0A of the City’s Purchasing Directive (Specially Authorized Waiver) approve an
agreement with P. Clifford Miller Inc. in the amount of $_____________ for landscape design
based upon option ______________.
4. Direct staff to begin removing or repairing the existing boardwalk that was closed in June, 2018.
5. Seek engineering design proposals for a re-designed walkway adjacent to the South Beach Access
Road.
Alderman Preschlack made a motion to direct staff to pursue repair of the NBAR bluff per design option 3A,
seconded by Alderman Morris. The following voted “Aye”: Aldermen Beidler, Morris, Newman, Rummel,
Reisenberg, Preschlack, Moreno, and Buschmann. The following voted “Nay”: None. 8- Ayes, 0 Nays, motion
carried.
Alderman Preschlack made a motion to approve per Section 9.0A of the City’s Purchasing Directive (Specially
Authorized Waiver) approve an agreement with AECOM in the amount of $208,000 for design and
construction engineering services based upon option 3A, seconded by Alderman Newman. The following
voted “Aye”: Aldermen Beidler, Morris, Newman, Rummel, Reisenberg, Preschlack, Moreno, and
Buschmann. The following voted “Nay”: None. 8- Ayes, 0 Nays, motion carried.
Alderman Preschlack made a motion to per Section 9.0A of the City’s Purchasing Directive (Specially
Authorized Waiver) approve an agreement with P. Clifford Miller Inc. in the amount of $18,740 for
landscape design based upon option 3A, seconded by Alderman Newman. The following voted “Aye”:
Aldermen Beidler, Morris, Newman, Rummel, Reisenberg, Preschlack, Moreno, and Buschmann. The
following voted “Nay”: None. 8- Ayes, 0 Nays, motion carried.
Alderman Preschlack made a motion to direct staff to begin removing the existing boardwalk that was
closed in June 2018, seconded by Alderman Reisenberg. The motion carried unanimously by voice vote.
The City Council directed staff to return with additional options related to action #5 above and took no
action.
OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS
224
Proceedings of the Monday, October 15, 2018
Regular City Council Meeting
ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approval of the October 1, 2018 City Council Meeting Minutes
2. Acknowledge Receipt of the FY2018 Treasurer’s Report
3. Consideration of an Ordinance Granting the Renewal of a Nonexclusive Cable Television
Franchise Agreement Between The City of Lake Forest and Comcast of Illinois XII, LLC. (Final
Approval)
4. Authorization to Dispose of City Property to N3 Sales, Inc. via GovDeals
5. Consideration of Ordinances Approving Recommendations from the Building Review Board.
(First Reading and if Desired by the City Council, Final Approval)
6. Consideration of an Ordinance Approving a Recommendation from the Zoning Board of
Appeals. (First Reading, and if Desired by the City Council, Final Approval)
7. Authorization for the City Manager to enter into a Professional Services Agreement with
Lake County Press, Inc. on Professional Printing Services for the City Dialogue Quarterly
Community-Wide Newsletter.
COUNCIL ACTION: Approval of the Seven (7) Omnibus items as presented
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 number 7.
Mayor Lansing again asked members of the Council if they would like to remove any item or take it
separately. Seeing none, Mayor Lansing asked for a motion to approve the seven (7) Omnibus items as
presented.
Alderman Newman made a motion to approve the seven (7) Omnibus items as amended, seconded by
Alderman Beidler. The following voted “Aye”: Aldermen Beidler, Morris, Newman, Rummel, Reisenberg and
Preschlack. The following voted “Nay”: None. Alderman Buschmann stepped out during the vote. 6- 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
ADDITIONAL ITEMS FOR COUNCIL DISCUSSION/COMMENTS BY COUNCIL MEMBERS
ADJOURNMENT
There being no further business Mayor Lansing asked for a motion. Alderman Newman made a motion to
adjourn, seconded by Alderman Beidler. Motion carried unanimously by voice vote at 9:54pm.
225
Proceedings of the Monday, October 15, 2018
Regular City Council Meeting
Respectfully Submitted
Mike Strong, Assistant to the City Manager
A video of the City Council meeting is available for viewing at the Lake Forest Library and on file in the Clerk’s
office at City Hall. You can also view it on the website by visiting www.cityoflakeforest.com. Click on I Want
To, then click on View, then choose Archived Meetings Videos.
226
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THE CITY OF LAKE FOREST
ORDINANCE NO. 2018-_____
AN ORDINANCE AMENDING THE LAKE FOREST CITY CODE
WHEREAS, the City has established a Board of Fire and Police Commissioners
pursuant to 65 ILCS 5/10-2.1; and
WHEREAS, the provisions regarding the Board of Fire Police Commissioners are
currently found in Chapter 32, Sections 32.050 to 32.054 of the City’s Code of Ordinances; and
WHEREAS, pursuant to its home rule authority, the City is allowed to regulate the hiring
and promotion of police officers in the City’s police department; and
WHEREAS, the Mayor and City Council have determined that it is in the best interests of
the City and its residents that the City exercise its home rule authority to amend the length of
time which a candidate for promotion in the police department can remain on a promotional
eligibility list in the manner set forth below;
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF
THE CITY OF LAKE FOREST, COUNTY OF LAKE, STATE OF ILLINOIS, as follows:
SECTION ONE: Recitals. The foregoing recitals are incorporated as the findings of the
City Council and are hereby incorporated into and made a part of this Ordinance.
SECTION TWO: Addition of Section 32.055 to the City Code. Section 32.055,
entitled "Police Department Promotional Eligibility Lists," of Chapter 32, is hereby appended to
City’s Code of Ordinances, to include the following language: “Applicants for promotion in the
Police Department shall be struck from the Promotional Register of Eligibles when they have
been on the Register of Eligibles for more than two years, provided there is no vacancy existing
that can be filled from that Promotional Register of Eligibles.”
SECTION THREE: Effective Date. This Ordinance shall be in full force and effect upon
its passage, approval, and publication in pamphlet form in the manner provided by law.
227
{00529786.DOCX v. 1 } 2
Passed this ____ day of _________________________, 2018.
AYES:
NAYS:
ABSENT:
ABSTAIN:
Approved this __ day of _________________________, 2018.
_____________________________
Mayor
ATTEST:
_______________________________
City Clerk
228
THE CITY OF LAKE FOREST
ORDINANCE NO. 2018-____
AN ORDINANCE AMENDING SECTION 134.05
OF THE LAKE FOREST CITY CODE
REGARDING CRIMINAL TRESPASS TO LAND
Adopted by the City Council
of the City of Lake Forest
this day of 2018
Published in pamphlet form by direction
and authority of The City of Lake Forest
Lake County, Illinois
this day of 2018
229
THE CITY OF LAKE FOREST
ORDINANCE NO. 2018-_____
AN ORDINANCE AMENDING SECTION 134.05
OF THE LAKE FOREST CITY CODE
REGARDING CRIMINAL TRESPASS TO LAND
WHEREAS, The City of Lake Forest is a home rule, special charter municipal
corporation; and
WHEREAS, The City of Lake Forest has enacted certain regulations relating to land,
including adopting a prohibition on the criminal trespass to land; and
WHEREAS, The City of Lake Forest desires to amend the current criminal trespass
provisions of the City Code to incorporate language consistent with the criminal trespass
provisions of state statute, as set forth in this Ordinance; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of The City of Lake Forest,
County of Lake, and State of Illinois, as follows:
SECTION ONE: Recitals. The foregoing recitals are incorporated as the findings of the
City Council and are hereby incorporated into and made a part of this Ordinance.
SECTION TWO: Amendment. Section 134.05, entitled “Criminal Trespass to Land,” of
the Lake Forest City Code is hereby amended as follows (added text is shown in bold, double
underlined, stricken text in strikethrough):
Ҥ 134.05 CRIMINAL TRESPASS TO LAND REAL PROPERTY.
(A) A person commits criminal trespass to real property when he or
she:
(1) Knowingly and without lawful authority enters or remains
within or on a building; or
(2) Whoever Enters upon the land real property or any part thereof
of another, after receiving, immediately prior to such entry, notice from the
owner or occupant that such entry is forbidden, or remains upon the land
of another after receiving notice from the owner or occupant to depart.
230
(B) A person has received notice from the owner or occupant within the
meaning of division (A) above if he or she has been notified personally, either
orally or in writing, or by a printed or written exhibit at the main entrance to such
land or the forbidden part thereof. Upon request of the owner or occupant,
the City shall deliver such notice in writing on behalf of the owner or
occupant, the delivery of which shall constitute receipt of notice for
purposes of division (A)(2).
(C) This section does not apply to any person, whether a migrant worker or
otherwise, living on the land with permission of the owner or of his or her agent
having apparent authority to hire workers on such land and assign them living
quarters or a place of accommodations for living thereon, nor to anyone living on
such land at the request of, or by occupancy, leasing or other agreement or
arrangement with the owner or his or her agent, not to anyone invited by such
migrant worker or other person so living on such land to visit him or her at the
place he or she is so living upon the land.”
SECTION THREE: Effective Date. This Ordinance shall be in full force and effect upon
its passage, approval, and publication in pamphlet form in the manner provided by law.
Passed this ____ day of _________________________, 2018.
AYES:
NAYS:
ABSENT:
ABSTAIN:
Approved this __ day of _________________________, 2018.
_____________________________
Mayor
ATTEST:
_______________________________
City Clerk
4826-4646-3603, v. 1
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THE CITY OF LAKE FOREST
RESOLUTION NO.
A RESOLUTION TO CONTINUE TO ENCOURAGE AND FACILITATE THE REPLACEMENT OF
LEAD WATER SERVICE LINES
WHEREAS, The City of Lake Forest (the “City”) is a home rule special charter
municipality established and existing in accordance with the Constitution of the State of Illinois
of 1970; and
WHEREAS, the City has a long tradition of establishing processes and programs that
protect and promote the health, life safety and general well-being of residents and visitors; and
WHEREAS, the City’s Water Plant and the water quality are regularly monitored and
consistently meet all IEPA standards; and
WHEREAS, in addition to regular monitoring of water quality, the City has a corrosion
control program through which lead pipes are coated to reduce the likelihood of exposure to
lead; and
WHEREAS, out of an abundance of caution, the City reviewed property files and initially
identified approximately 300 homes within the city limits which may have lead water service lines;
and
WHEREAS, letters were mailed to owners of the identified properties along with
information to help owners make informed decisions about lead water service lines; and
WHEREAS, a total of 190 inspections have been conducted and in some cases, City
inspectors found that lead services no longer exist; in other cases, where lead services were found,
some owners expressed interest in replacing the lead services; and
WHEREAS, the City Council first approved of a Resolution on October 3, 2016 to
encourage and facilitate the replacement of lead water service lines; and
WHEREAS, the City desires to facilitate the process of replacing lead service lines in
cases where property owners choose to do so by providing information, a streamlined process
and by waiving standard permit fees;
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WHEREAS, a total of 12 residential lead service line replacements have occurred since
City Council approved the October 2016 Resolution to Facilitate the Replacement of Lead Water
Service Lines;
WHEREAS, the City Council has determined that it is in the best interest of the City and
its residents to continue a program to support and encourage the replacement of lead water
service lines;
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF
THE CITY OF LAKE FOREST, COUNTY OF LAKE, STATE OF ILLINOIS, as follows:
SECTION ONE: RECITALS. The foregoing recitals are incorporated in, and made a
part of, this Resolution by this reference as findings of the City Council of The City of Lake
Forest.
SECTION TWO: DIRECTION TO CITY STAFF. The staff is directed to develop a lead
water service replacement program generally in conformance with the following:
a. A replacement water service line that is the same size as the existing service line shall
be permitted as long as the calculations, based on the number of fixtures, demonstrate
that the service is adequate. (Some homes that currently have a ¾ inch service could
require an upgrade to a 1” service per the State of Illinois Plumbing Code.)
b. If an upgrade in the size of a water service is required to meet the minimum standard in
the State Plumbing Code, the City will not require an upgrade in the meter size.
c. If the owner chooses to upgrade the size of the water service, in a situation where it is
not mandated by the State Plumbing Code, the water meter must be upgraded to be
consistent with the size of the new line.
d. Tap fees (even if the size of the service is upgraded), inspection fees and street opening
permit will be waived for a period of two years from the date of passage of this
Resolution so long as full replacement of the water service occurs. (Based on current
fees, the fee waiver per household would range from $600 to $1,400 depending on the
size of the service line.)
e. The cost of a new water meter will be the obligation of the property owner.
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SECTION THREE: EFFECTIVE DATE. This Resolution shall be in full force and effect
upon the passage and approval.
PASSED THIS DAY OF , 2018.
AYES:
NAYS:
ABSENT:
APPROVED THIS DAY OF , 2018.
ATTEST:
Mayor
City Clerk
255
Second Amendment to Management Agreement
Forest Park Beach Concession Stand
10.19.18swk
1
SECOND AMENDMENT TO MANAGEMENT AGREEMENT
THIS SECOND AMENDMENT (“Second Amendment”) to Management Agreement dated as of
January 1, 2015 by and between The City of Lake Forest, Illinois, an Illinois home rule and special
charter municipal corporation (“Owner”) and Kemper Sports Management, Inc., an Illinois
corporation (“KSM”) (the “Agreement”) is made and entered into as of October__, 2018 (the
“Second Amendment Effective Date”), by and between Owner and KSM. Capitalized terms used
herein but not defined shall have the meanings as set forth in the Agreement.
W I T N E S S E T H:
WHEREAS, the Owner owns the public golf course, clubhouse and related facilities
located in Lake Forest, Illinois known as the “Deerpath Golf Course” and;
WHEREAS, the Owner and KSM entered into the Agreement for KSM to provide
certain management services for the Deerpath Golf Course.
WHEREAS, the Owner and KSM now desire to extend the Term of the Agreement and
make certain other modifications as further set forth herein.
NOW, THEREFORE, for and in consideration of the covenants, agreements and
obligations of the respective parties as set forth herein, Owner and KSM agree as follows:
1. Term. Section 2.2 “Term” is hereby deleted in its entirety and replaced with the
foregoing
“2.2 Term. Subject to Article 13 of this Agreement, the “Term” of this
Agreement shall begin on January 1, 2015 (the “Commencement Date”) and shall
terminate on December 31, 2024 (the “Termination Date”); provided, however, that
either Owner or KSM may terminate this Agreement following the seventh
anniversary of the Commencement Date (i.e. January 1, 2022) upon notice to the
other party 90 days prior to such termination. Unless Owner or KSM provides a
90-day notice prior to the Termination Date of their intent not to renew this
Agreement, the Term of this Agreement shall be automatically renewed for an
additional five (5) year term.
2. Operating Budget. Section 3.4.1 “Operating Budget” is hereby deleted in its entirety
and replaced with the foregoing:
“3.4.1 Operating Budget. During the Term, KSM shall submit to Owner, for
Owner’s review and written approval, an operating budget setting forth the
forecasted revenues and expenses associated with the operations of the Property for
each upcoming Fiscal Year, or part thereof, within the Term (the “Operating
Budget”). In connection with the foregoing, KSM shall provide forecasted
revenues by November 15th for the upcoming Fiscal Year and forecasted expenses
by January 1st of such upcoming Fiscal Year. Owner shall retain final authority
regarding operating expenditures and the Operating Budget. The Operating Budget
for the 2015 Fiscal Year is attached hereto as Exhibit D.”
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Second Amendment to Management Agreement
Forest Park Beach Concession Stand
10.19.18swk
2
3. Beach Concession Services. Section 3.6 “Food and Beverage Concessions” is hereby
revised by adding the following to the end of the first paragraph of that section as a
new sentence:
“The opening and closing dates each season during the Term for the Beach
Concession shall be determined by the Lake Forest Director of Parks,
Recreation, and Forestry”.
4. Accounting Services Review. On an annual basis during the Term, upon request by
either party, the parties agree to discuss in good faith the Accounting Reimbursement
and whether to continue having KSM handle the financial affairs of the Property from
KSM’s home office. The parties agree to amend the Agreement as necessary to reflect
any mutually agreed to modifications of this provision.
5. Full Force and Effect. Except as otherwise specifically modified herein, all other
provisions of the Agreement, shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the Second
Amendment Effective Date.
KEMPER SPORTS MANAGEMENT, INC.
By:
Steven K. Skinner
Chief Executive Officer
CITY OF LAKE FOREST, ILLINOIS
By:
Name:
Title:
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