CITY COUNCIL 2019/11/04 Agenda
THE CITY OF LAKE FOREST
CITY COUNCIL AGENDA
Monday, November 4, 2019 at 6:30 pm
City Hall Council Chambers
220 E. Deerpath, Lake Forest
Honorable Mayor, George Pandaleon
Prudence R. Beidler, Alderman First Ward James Preschlack, Alderman Third Ward
James E. Morris, Alderman First Ward Ara Goshgarian, Alderman Third Ward
Melanie Rummel, Alderman Second Ward Michelle Moreno, Alderman Fourth Ward
Edward U. Notz , Jr. Alderman Second Ward Raymond Buschmann, Alderman Fourth Ward
CALL TO ORDER AND ROLL CALL 6:30pm
PLEDGE OF ALLEGIANCE
REPORTS OF CITY OFFICERS
1. COMMENTS BY MAYOR
A. Approval of the Deed of Gift of the Original 1857 Map of The City of Lake
Forest to The Newberry Library in Chicago
STAFF CONTACT: Susan Banks, Communications Manager (847-810-3672)
PURPOSE AND ACTION REQUESTED: Staff requests City Council approval of the Deed of Gift of
the original 1857 map of The City of Lake Forest to the Newberry Library.
BACKGROUND/DISCUSSION: Beginning in November of 2018, the City received a request from
the History Center of Lake Forest-Lake Bluff to move the original surveyor’s map from 1857
from City Hall to the new history museum. Discussions began between the History Center, the
Preservation Foundation and City Staff, prompting a formal appraisal of the map and more
discussion on the safest and most proper permanent home for this rare map, which was
valued at $50,000.
In January 2019, it was determined by the History Center, the Preservation Foundation and
City Staff and Attorney that The Newberry was the proper and ultimate location for this piece
for several reasons:
1) The History Center initiated a goal to have more than 1,000 maps of Lake County in its
digital database over the next three years.
2) None of the City buildings nor the History Center are a safe enough environment to
house this rare and fragile document. The Newberry has special temperature and
light -controlled rooms for these types of pieces.
3) In 2015, The City hired a professional company to conserve the map for $13,138,
including a $2500 contribution from the Preservat ion Foundation.
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Monday, November 4, 2019 City Council Agenda
4) The Newberry “is honored to serve as the steward of this historic document and
grateful to the City of Lake Forest for entrusting it” to its care; and “looks forward to
working with the City in the future; preserving and making this treasure known and
safely available to students, scholars, and members of the general public.” All
references and uses of the map will include: “The Newberry Library. Gift of The City of
Lake Forest.”
5) The City will receive copies of new digital files, at no co st, if they are made by The
Newberry.
The Deed of Gift has been reviewed and approved by the City Attorney and signed by The
Newberry Library, it can be found on page 14 of your packet.
BUDGET/FISCAL IMPACT: N/A
COUNCIL ACTION: Grant Approval of Deed of Gift of the Original 1857 Map of The City of Lake
Forest to The Newberry Library in Chicago
2. COMMENTS BY CITY MANAGER
3. COMMITTEE REPORTS
AUDIT COMMITTEE
A. Audit Committee Report-Fiscal Year 2019 Annual Financial Report
PRESENTED BY: Vincent Sparrow, Audit Committee Chairman
STAFF CONTACT: Elizabeth Holleb, Finance Director (847-810-3612)
PURPOSE AND ACTION REQUESTED: Staff requests receipt of the audit report for the fiscal year
ended April 30, 2019.
BACKGROUND/DISCUSSION: The Comprehensive Annual Financial Report (CAFR) for the fiscal
year ended April 30, 2019 is provided beginning on page 16. 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
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 2019 financial statements.
The City has been awarded the Certificate of Achievement for Excellence in Financial
Reporting from the Government Finance Officers Association for forty 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 2019 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, 2019.
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Monday, November 4, 2019 City Council Agenda
FINANCE COMMITTEE
A. Determination of Non-Binding Estimate of the Amount of Revenue to be generated
from Property Taxes for the 2019 Calendar Year in Accordance with the Truth in
Taxation Statute and Establishment of a Public Hearing Date for the 2019 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 2019
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 2019 tax levy by establishing an estimated
amount from which staff can prepare a proposed levy ordinance. A discussion regarding the
2019 tax levy is scheduled for the November 12 Finance Committee budget workshop. The tax
levy ordinance will be considered by the City Council on November 18 and again on
December 2, 2019.
The 2019 property tax levy estimate, as considered by the Finance Committee on October 21,
is as follows:
Levy 2018 Extended 2019 Levy Estimate % Increase (Decr.)
Aggregate Levy $ 30,630,237 $ 31,881,291 4.08%
Debt Service Levy 1,669,665 1,901,820 13.90%
TOTAL LEVY $ 32,299,902 $ 33,783,111 4.59%
The increase in the aggregate levy is comprised primarily of the following:
• 1.90% overall increase in compliance with the tax cap applicable to 2019 levies under
the Property Tax Extension Limitation Law (PTELL),
• an increase due to new construction as estimated by the Lake County Assessor’s Office
(not yet available, so will be added at a later date),
• an increase in funding requirements for police and fire pension as established by a
4/30/19 independent actuarial valuation, and
• required debt service levy amounts as established by bond ordinances approved at
the time of debt issuance.
Based on the preliminary estimate, a public hearing would not be required under the Truth in
Taxation Act.
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Monday, November 4, 2019 City Council Agenda
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
Finance Committee 10/21/19 Approval of 2019 Tax Levy Estimate
City Council 9/3/19 Approval of revised Pension Funding Policy
COUNCIL ACTION: Determination of an Estimate of the Amount of Revenue to be generated
from Property Taxes for the 2019 Calendar Year and establishment of December 2, 2019 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 21, 2019 City Council Meeting Minutes
A copy of the minutes can be found beginning on page 229.
COUNCIL ACTION: Approval of the October 21, 2019 City Council M eeting Minutes.
2. Approval of the Check Register for September 21-October 25, 2019
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 invoic e 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
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 Cit y
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:
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Monday, November 4, 2019 City Council Agenda
The amount listed as “All other Funds” includes $554,272 in the Self Insurance Fund for
medical/dental claims.
COUNCIL ACTION: Approval of the Check Register for September 21 – October 25, 2019
3. Approval of an Amendment to the City Council Schedule of Regular Meetings
Previously Adopted by the City Council for the Year 2020
STAFF CONTACT: Margaret Boyer, City Clerk (810.3674)
PURPOSE AND ACTION REQUESTED: Due to a number of scheduling conflict, staff is seeking
approval of an amendment to the City Council Schedule of Regular Meetings previously
adopted by the City Council for the Year 2020.
BACKGROUND/DISCUSSION: The City Council previously approved a meeting schedule at its
Monday, May 20, 2019 Second Session City Council meeting. The amendment is a change to
the March Budget meeting from Monday, March 9, 2020 to Thursday, March 12, 2020.
Location and time remain the same. (Municipal Services Building, 5pm)
A copy of the amended schedule can be found beginning on page 233.
COUNCIL ACTION: Approval of an Amendment to the City Council Schedule of Regular
Meetings previously adopted by the City Council for the Year 2020
4. Approval of a Proclamation Honoring National Indian Heritage Month
STAFF CONTACT: Susan Banks, Communications Manager (847-810-3672)
A copy of the Proclamation can be found on page 235 of the packet
COUNCIL ACTION: Approval of a Proclamation Honoring National Indian Heritage Month
Fund Invoice Payroll Total
101 General 601,569 1,520,498 2,122,067
501 Water & Sewer 130,718 195,986 326,704
220 Parks & Recreation 197,889 440,164 638,053
311 Capital Improvements 1,179,132 0 1,179,132
202 Motor Fuel Tax 0 0 0
230 Cemetery 20,833 33,950 54,784
210 Senior Resources 12,382 29,968 42,350
510 Deerpath Golf Course 11,302 2,857 14,159
601 Fleet 82,580 54,949 137,529
416 - 433 Debt Funds 750 0 750
248 Housing Trust 0 0 0
201 Park & Public Land 70,558 0 70,558
All other Funds 943,184 184,072 1,127,256
$3,250,898 $2,462,444 $5,713,342
Check Register for September 21 - October 25, 2019
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Monday, November 4, 2019 City Council Agenda
5. Approval of Health Insurance Contract Renewals and Authorization for the City
Manager to Execute Contracts Related to the 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 for Calendar Year 2020. Benefit changes from prior years,
revised prescription contract costs from 2019, and the City’s Think Healthy wellness program
effective last year are meeting expectations.
BACKGROUND/DISCUSSION: The City provides a self -funded medical and dental plan and
insured life insurance, transplant coverage, and reinsurance (stop loss) 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 for employees. Wright Benefit Strategies, our insurance consultant,
recommended not bidding stop loss this year after marketing it last year. The reason for the
recommendation is that bidding every year reduces leverage in negotiations in difficult claim
years, and potentially puts the City at greater risk of large exclusions, rate increases, or both.
In the case of our stop loss coverage, we were able to negotiate significant rate reductions
this y ear because we stayed with the same carrier. We have been bidding this service about
every two years. In addition, bidding of other services is not recommended at this time due
to favorable results and contractual features relating to our benefit structure. Staff is
recommending renewing with current providers for January of 2020.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
PCA Committee 11/4/19 Being 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 for the
Final Two Years of a Three-Year Contract. Serve You Pharmacy Card services are in the first
year of a three-year contract following evaluation against t wo leading providers for the
2019 calendar year. Serve You services are integrated into the City health plan.
Contractual discounts and fees are remaining the same. Drug rebates are expected to
decrease based on lower utilization of brand drugs. Serv e You is meeting expectations.
• Retain Professional Benefit Administrators (PBA) for Administration and Billing Services PBA
medical administration fees increased slightly by $1,928. PBA is a low-cost provider for
administration of the City health plan, including claims administration and coordination of
medical plan services and administration of the City flexible spending account. Staff and
the City’s insurance consultant recommend retaining PBA based on their service and the
nature of the City’s benefit structure, as costs are similar to other providers. PBA is meeting
expectations.
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Monday, November 4, 2019 City Council Agenda
• Retain preferred provider network administration with CIGNA through PBA Cigna provides
networks and managed care services through a contracted relationship with PBA. CIGNA
provides broad access and favorable discounts. Services are meeting expectations.
• Retain Voya for stop loss coverage and retain Optum Health for Transplant coverage.
Voya provides Specific reinsurance for large claims over $150,000 and Aggregate
reinsurance for total claims in a calendar year. Staff requested bids for stop loss coverage
for the 2019 calendar year, and Voya was the lowest cost carrier. For 2020, Voya agreed
to reduce the renewal to an adjustment in rates below industry trend, providing full
coverage for ongoing conditions without exclusions.
• Retain CIGNA Group Life Insurance for a Two-Year Period. Cigna provides City paid Basic
Life insurance together with offering voluntary, employee-paid life insurance for
employees and dependents. Cigna provides a benefit structure that meets the City’s
benefit design including the voluntary employee insurance. Cigna’s costs are not
changing and are guaranteed for two years. Cigna is meeting expectations.
Funding Source: Self-Insurance Fund
Spread over FY20 and FY21 budgets
Current Amount
Requested
Budgeted?
Summary Pricing Serve You Rx
• Dispensing Fees $2,590 $2,547 Yes
• Generic Discount Retail/Mail Order 76%/81% 76%/81% Yes
• Rebates Paid to Plan $(87,290) $(76,040) Yes
Summary Pricing PBA $93,736 $95,664 Yes
Summary Pricing CIGNA PPO $48,262 $50,234 Yes
Summary Pricing Voya
• Specific Premium $689,737 $741,056 Yes
• Aggregate Premium $12,820 $13,737 Yes
• Transplant Premium (Optum) $28,262 $29,385 Yes
• Total $731,240 $784,178 Yes
Summary Pricing CIGNA Life
Funding Source: Operating Budgets
$22,731 $22,731 Yes
o Has City staff obtained competitive pricing for proposed goods/services? No
o If no, indicate the specific exception or waiver requested:
Administrative Directive 3-5, Section 9.1J – Existing Relationship
City Manager to execute the following contracts:
• retaining Professional Benefit Administrators (PBA) for administration and billing
services
• retaining preferred provider network administration with CIGNA through PBA
• retaining Voya fo r stop loss coverage,
• renewing with Optum Health for transplant coverage, a component of stop loss
coverage,
• retaining CIGNA for life insurance for a two -year period; and
• approve continuation of City contract with Serve You for prescription drug coverage
for a two -year period
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Monday, November 4, 2019 City Council Agenda
COUNCIL ACTION: Approval of Health Insurance Contract Renewals and Authorization for the
City Manager to Execute Contracts Related to the Renewals
6. Award of Bid for the Mayflower Ravine Repair to North Shore Boring in the amount of
$34,710.00 and Kinnucan Tree Experts in the amount of $45,434.16 for the Combined
Project Amount of $80,144.16
STAFF CONTACT: Jim Lockefeer, Public Works Management Analyst (810-3542)
PURPOSE AND ACTION REQUESTED: The Public Works Committee and staff are requesting
approval of a bid for the Mayflower Ravine Repair Project to North Shore Boring in the
amount of $34,710.00 and Kinnucan Tree Experts in the amount of $45,434.16 for the
combin ed project amount of $80,144.16.
BACKGROUND/DISCUSSION: The Mayflower Ravine Repair is located south of the intersection
of Mayflower Road and Spring Lane and just north of the Ferry Hall Bridge.
This project will repair a ravine bank washout that was caused by stormwater overtopping the
roadway curb during heavy rainfall events. This stormwater issue had been occurring due to
inadequate capacity of the catch basin system conveying the water from the roadway to
the bottom of the ravine. When this storm sewer is at capacity, stormwater begins to pond
and will ev entually overtop the curb and flow freely down this ravine bank. Overtime, the flow
down the ravine has caused a washout of the ravine bank. The repair is needed in order to
maintain the stability of the ravine bank, adjacent road, and bridge abutment.
The repair was designed by the City Engineer and reviewed by Public Works staff. The design
will increase the capacity of the roadway storm sewer to greatly reduce the occurrences of
stormwater overtopping at the curb and flowing down the ravine bank. The design will also
restore and further stabilize the ravine bank,
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
Public Works Committee 10/30/2019 Reviewed & Approved
BUDGET/FISCAL IMPACT: On October 8, 2019, the project bid announcement was released by
the City, published in the Lake County News Sun, and posted on the City’s website via the
City’s invitation to bid program “Quest CDN” for all contractors to view and access. Interested
firms were required to submit their bid proposal by October 22, 2019. The project scope was
divided into two components; Component A was identified as the storm sewer portion and
Component B was identified as the ravine bank restoration portion. Interested firms were not
required to bid on both Component A and B of this project in order for their bid to be
considered. City staff received the following bids:
Firm Project Component Bid Cost
North Shore Boring A $34,710
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Monday, November 4, 2019 City Council Agenda
Kinnucan B $45,434
Campanella & Sons Both $194,500
Foundation Mechanics Both $164,850
Foundation Mechanics A $100,000
Foundation Mechanics B $74,850
Has City staff obtained competitive pricing for proposed goods/services? Yes
Upon review of all the received bids, Public Works Department staff recommends proceeding
with the low bids received by North Shore Boring and Kinnucan. Both firms have completed
numerous projects within the City and had other positive references.
Below is an estimated summary of Project budget:
FY2020 Funding Source Amount
Budgeted
Amount
Requested
Budgeted?
Y/N
Capital Fund
Headwall / Culvert/ Ravine
311-3703-467.67-26
$350,000 $80,144.16 Y
The above account represents allocated CIP funds for multiple ravine and minor stormwater
repairs.
If approved, City staff and the contracting firms will look to begin the work as soon as the
contractors’ schedule allows.
COUNCIL ACTION: Approve of a bid for the Mayflower Ravine Repair to North Shore Boring in
the amount of $34,710.00 and Kinnucan Tree Experts in the amount of $45,434.16 for the
combined project amount of $80,144.16.
7. Authorization to Dispose of City Property; Sale of Existing 1991 Ladder Tower via Gov
Deals to the Highest Bidder in the Amount of $32,500
STAFF CONTACTS: Pete Siebert, Fire Chief (810-3864)
Michael Thomas Director of Public Works (810-3540)
PURPOSE AND ACTION REQUESTED: Staff is requesting City Council authorization to dispose of
surplus City equipment. Per Administrative Directive 3-2, any item staff believes has a current
value of $4,000 or more requires City Council approval to sell. The item is sold via a public
bidding process, and in this case, via multiple on-line and industry publications.
BACKGROUND/DISCUSSION: The 1991 Pierce Lance Ladder Tower was taken out of service in
September, 2019. The vehicle has played an important role in the City’s Fire Department for
over 28 years. With the acquisition of the Knollwood Ladder truck, which was placed into
service in September, 2019, Ladder Tower 231 is no longer needed for the Fire Department.
The sale of this truck will allow the Fire Department to continue to implement its fleet
replacement plan.
Department staff utilized GovDeals, an online government surplus and unclaimed Property
auction website, as it has with other recent Fire Department equipment sales. The highest bid
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Monday, November 4, 2019 City Council Agenda
received for the auction period met the Department’s reserve price of $32,500. Reviewing the
current market and dollars received for similar units, staff believes the bid is a fair price and
recommends approving the sale of the unit. Upon approval by City Council, staff will notify
GovDeals that the sale was approved and the transaction will proceed. Payment will be
made via wire transfer to The City of Lake Forest.
BUDGET/FISCAL IMPACT: Per Section 3.10 of administrative Directive 3-2, all revenues received
from the sale of the ladder tower will be credited to the appropriate fund from which the item
was purchased; in this case, the Capital Fund.
COUNCIL ACTION: Authorization to Dispose of City Property; Sale of Existing 1991 Ladder
Tower via Gov Deals to the Highest Bidder in the Amount of $32,500
8. Consideration of an Ordinance Approving a Recommendation from the Zoning
Board of Appeals. (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 Zoning Board of Appeals is presented to the City Council
for consideration as part of the Omnibus Agenda.
420 Washington Road – The Zoning Board of Appeals recommended approval of variances from
the lot -in-depth and steep slope setbacks to allow restoration and renovation of a non-conforming
residence including construction of two small additions, a rear facing dormer and at grade,
pervious patios. Two neighbors provided input on the architectural aspects of the project and
refinements were made in response to the comments. (Board vote: 7 - 0, approved)
The Ordinance approving the petition as recommended by the Zoning Board of Appeals, with key
exhibits attached, is included in the Council packet beginning on page 236. The Ordinance,
complete with all 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
Zoning Board of Appeals’ recommendation.
9. Consideration of a Recommendation from the Plan Commission in Support of Final
Approval of a Plat of Subdivision for Property Located at 279 Scott Street and 931
McKinley Road. (Approval by Motion)
STAFF CONTACT: Catherine Czerniak,
Director of Community Development (810 -3504)
PURPOSE AND ACTION REQUESTED: Consideration of a recommendation from the Plan Commission
in support of final approval of a plat of subdivision to allow each unit and the adjacent yard area in
a new duplex development to be held in separate ownership.
BACKGROUND/DISCUSSION:
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Monday, November 4, 2019 City Council Agenda
In September, 2018, based on a recommendation from the Building Review Board, the City
Council approved re development of the property located on the southeast corner of
McKinley Road and Scott Street with a duplex development, one building with two separate
living units each with an attached garage and yard area. Construction on the site is nearing
completion.
The City Code requires that any development that creates parcels or units that will be held in
separate ownerships must be approved through a public process and documented with a
recorded plat. The plat of subdivision as recommended by the Plan Commission delineates
each unit and the associated garage, driveway and yard areas. Once the plat is approved,
each unit will be sold to separate buyers. There appears to be strong interest in the units from
potential buyers.
No changes to the previous approvals are proposed or authorized in conjunction with the
approval of the plat of subdivision.
The Plan Commission held a public hearing on June 20, 2019 to consider this petition. The
Commission commended the project and thanked the developer for a creative and high
quality approach to redevelopment of the property. No public test imony was presented.
The Plan Commission voted 4 to 0 to recommend approval of the plat of subdivision to the
City Council. The Plan Commission’s report and a copy of the plat are included in the
Council packet beginning on page 246.
COUNCIL ACTION: Approve a motion granting final approval of a plat of subdivision for
property located at 279 Scott Street and 931 McKinley Road
COUNCIL ACTION: Approval of the nine (9) Omnibus items as presented
6. ORDINANCES
7. NEW BUSINESS
8. ADDITIONAL ITEMS FOR DISCUSSION/ COMMENTS BY COUNCIL MEMBERS
1. EXECUTIVE SESSION pursuant to 5ILCS 120/2 (c) (11), The City Council will be
discussing threatened or pending litigation and (1), The City Council will be
discussing personnel.
Adjournment into Executive Session
Reconvene into Regular Session
9. ADJOURNMENT
A copy of the Decision Making Parameters can be found beginning on page 13 of this
packet .
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Monday, November 4, 2019 City Council Agenda
Office of the City Manager October 30, 2019
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 Jason Wicha, at (847) 234-2600 promptly to allow the City
to make reasonable accommodations for those persons.
12
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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.
13
THE EWBERRY 60 W. WAI.ION SFKII r * CincAtio, 1L 60610 * 312-943-9090 . WWW.NlWllt.RRY.OB.d
Deed of Gift
Gift of the City of Lake Forest, Illinois, to the Newberry Library
The City of Lake Forest, Illinois gives, donates, and conveys to the Newberry Library an 1857 Map of the City of
Lake Forest ("Map").
The City's gift of this item is made subject to the foUowing terms and condidons:
1. The "Map" becomes the physical property of the Newberry Library.
2, The City agrees that this material wiU be made available for research in accordance with the Library's
"Reading Room Policies" and its "Rights and Reproductions" poUcy (copies attached).
3. The following credit Une shall be used by the library and the City in aU references to and uses of the Map,
including Ubrary catalog, website, exhibition labels, print or online facsimiles: The Newberry Library. Gift
of The City of Lake Forest.
4. The Library agrees to maintain the "Map" as part of its collecdon at all times and provide for the long-term
preservation and security of the Map in accotdance with the standards, care, and diligence appUed to all of
its collections, which are consistent with best practices of recognized museums, libraries, archives,
companies, or firms performing services of a similar nature.
5. The Library agrees the City has the right to use, display, transfer, sell, and exploit copies of the Map for any
purpose whatsoever at the City's sole discretion. The City agrees the Library has the right to use, display,
transfer, seU, and exploit copies of the Map, in any format, for any purpose whatsoever at the Library's sole
dis ere don.
6. The Library will provide access to the "Map" to City personnel during its regular business hours.
?T If at any time the Newberry acquires new equipment that would make it possible to improve significandy on
the existing, 2015 high-resolution scans made for The City of Lake Forest and shared with the Library, the
City wiU receive a copy of the new high-resolution digital files, at no cost, for its own and locaUy-based
educational uses.
8. If at any time the Newberry seeks to seU, transfer, donate, or dispose of all or any part of its interest in the
"Map," it must nodfy City in writing. City must, within 60 days of receipt of the notice, nodfy Library in
writing that it wishes to reacqi iice the Map at no cost and the parries shaU arrange for its prompt return to
the City. The City shaU be responsible for any applicable delivery charges. If City elects not to reacquire the
Map, Library witl be free to donate or dispose of its interest in the "Map."
14
Signed:
Date:
MaUing address:
Telephone number:
E-mail:
This gift is accepted on behalf of the Newberry Library, subject to the terms and condidons specified in
this document.
' r
Signed for the Library:
Date: 5 ^^^ (// -2^/7
Title: V(^ ftts^d^fv^ ^Vcch^s ^J- ^ S^-e^ce^
15
Comprehensive Annual
Financial Report
City of Lake Forest,Illinois
For the Year Ended April 30,2019
16
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
OF THE
CITY OF LAKE FOREST, ILLINOIS
As of and for the Year Ended April 30, 2019
City of Lake Forest Finance Department
Elizabeth Holleb, Finance Director
Diane Hall, Assistant Finance Director
17
CITY OF LAKE FOREST
TABLE OF CONTENTS
As of and for the Year Ended April 30, 2019
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 - 3
REQUIRED SUPPLEMENTARY INFORMATION
Management's Discussion and Analysis 4 - 16
BASIC FINANCIAL STATEMENTS
Government-W ide Financial Statements
Statement of Net Position 17
Statement of Activities 18 - 19
Fund Financial Statements
Balance Sheet - Governmental Funds 20
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of
Net Position 21
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds 22
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 23
Statement of Net Position - Proprietary Funds 24 - 25
Statement of Revenues, Expenses and Changes in Net Position - Proprietary
Funds 26
Statement of Cash Flows - Proprietary Funds 27 - 28
Statement of Fiduciary Net Position - Fiduciary Funds 29
Statement of Changes in Fiduciary Net Position - Fiduciary Funds 30
Index to Notes to Financial Statements 31
Notes to Financial Statements 32 - 90
18
CITY OF LAKE FOREST
TABLE OF CONTENTS (cont.)
As of and for the Year Ended April 30, 2019
REQUIRED SUPPLEMENTARY INFORMATION
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget
and Actual - General Fund 91
Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget
and Actual - Parks and Recreation Fund 92
Historical Pension Information
Illinois Municipal Retirement Fund - Schedule of Changes in the City's Net
Pension Liability and Related Ratios 93 - 95
Illinois Municipal Retirement Fund - Schedule of Employer Contributions 96 - 98
Police Pension Fund - Schedule of Changes in the City's Net Pension Liability
and Related Ratios 99
Police Pension Fund - Schedule of Employer Contributions 100 - 101
Police Pension Fund - Schedule of Investment Returns 102
Firefighters' Pension Fund - Schedule of Changes in the City's Net Pension
Liability and Related Ratios 103
Firefighters' Pension Fund - Schedule of Employer Contributions 104 - 105
Firefighters' Pension Fund - Schedule of Investment Returns 106
Other Postemployment Benefits Plan - Schedule of Changes in the Total OPEB
Liability and Related Ratios 107
Notes to Required Supplementary Information 108
SUPPLEMENTARY INFORMATION
Governmental Funds
Combining Balance Sheet - Nonmajor Governmental Funds 109 - 110
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds 111 - 112
Schedules of Revenues, Expenditures and Changes in Fund Balances (Deficit) -
Budget and Actual
Police Restricted Fund - Nonmajor Special Revenue Fund 113
Foreign Fire Insurance Tax Fund - Nonmajor Special Revenue Fund 114
Emergency Telephone Fund - Nonmajor Special Revenue Fund 115
Parks and Public Land Fund - Nonmajor Special Revenue Fund 116
Motor Fuel Tax Fund - Nonmajor Special Revenue Fund 117
General Cemetery Fund - Nonmajor Special Revenue Fund 118
19
CITY OF LAKE FOREST
TABLE OF CONTENTS (cont.)
As of and for the Year Ended April 30, 2019
SUPPLEMENTARY INFORMATION (cont.)
Senior Resources Commission Fund - Nonmajor Special Revenue Fund 119
Housing Trust Fund - Nonmajor Special Revenue Fund 120
Debt Service Fund - Nonmajor Debt Service Fund 121
Laurel/W estern Redevelopment TIF Fund - Nonmajor Capital Projects Fund 122
Capital Improvements Fund - Major Capital Projects Fund 123
Schedules of Revenues, Expenses, and Nonoperating Revenues (Expenses) -
Budget and Actual (Budgetary Basis)
Waterworks and Sewerage Fund - Major Enterprise Fund 124
Deerpath Golf Course Fund - Nonmajor Enterprise Fund 125
Combining Statement of Net Position - Internal Service Funds 126
Combining Statement of Revenues, Expenses and Changes in Net Position -
Internal Service Funds 127
Combining Statement of Cash Flows - Internal Service Funds 128
Schedules of Revenues, Expenses, and Nonoperating Revenues (Expenses) -
Budget and Actual (Budgetary Basis)
Fleet Fund - Internal Service Fund 129
Self Insurance Fund - Internal Service Fund 130
Liability Insurance Fund - Internal Service Fund 131
Combining Statement of Fiduciary Net Position - Pension Trust Funds 132
Combining Statement of Changes in Fiduciary Net Position - Pension Trust Funds 133
Statement of Changes in Fiduciary Net Position - Budget and Actual
Police Pension Fund - Pension Trust Fund 134
Firefighters' Pension Fund - Pension Trust Fund 135
Statement of Changes in Assets and Liabilities - Agency Fund - Special
Assessment Fund 136
Statement of Net Position and General Fund Balance Sheet - Discretely Presented
Component Unit - Lake Forest Library 137
Statement of Activities and General Fund Statement of Revenues, Expenditures,
and Changes in Fund Balance - Discretely Presented Component Unit - Lake
Forest Library 138
Summary of Debt Service Requirements to Maturity 139
20
CITY OF LAKE FOREST
TABLE OF CONTENTS (cont.)
As of and for the Year Ended April 30, 2019
SUPPLEMENTARY INFORMATION (cont.)
Debt Service Requirements to Maturity - General Obligation Bonds 140 - 144
Special Service Area 25 Special Tax Bonds - 2003 Series 145
Special Service Area 26 Special Tax Bonds - 2003 Series 146
Special Service Area 29 Special Tax Bonds - 2004 Series 147
General Obligation Bonds - 2009 Series 148
General Obligation Bonds - 2010 Series B 149
General Obligation Bonds - 2010 Series C 150
General Obligation Bonds - 2011 Series A 151
General Obligation Bonds - 2011 Series B 152
General Obligation Bonds - 2013 Series 153
General Obligation Bonds - 2015 Series 154
General Obligation Bonds - 2017 Series 155
Combining Balance Sheet - Debt Service Fund 156 - 157
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Debt Service Fund 158 - 159
STATISTICAL SECTION
Net Position by Component - Last Ten Fiscal Years 160 - 161
Change in Net Position - Last Ten Fiscal Years 162 - 165
Fund Balances of Governmental Funds - Last Ten Fiscal Years 166 - 167
Change in Fund Balances for Governmental Funds - Last Ten Fiscal Years 168 - 169
Assessed Value and Actual Value of Taxable Property - Last Ten Levy Years 170
Property Tax Rates - Direct and Overlapping Governments - Last Ten Levy Years 171
Principal Property Taxpayers - Current Year and Nine Years Ago 172
Property Tax Levies and Collections - Last Ten Levy Years 173
Tax Extensions for City Funds - Last Ten Levy Years 174
Sales Tax Base and Number of Principal Payers - Taxable Sales by Category - .5%
Sales Tax - Last Ten Calendar Years 175
Sales Tax Base and Number of Principal Payers - Taxable Sales by Category - 1%
Sales Tax - Last Ten Calendar Years 176
Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years 177
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 178
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 179
21
CITY OF LAKE FOREST
TABLE OF CONTENTS (cont.)
As of and for the Year Ended April 30, 2019
STATISTICAL SECTION (cont.)
Direct and Overlapping Governmental Activities Debt 180
Legal Debt Margin Information - Last Ten Fiscal Years 181
Pledged Revenue Coverage - Last Ten Fiscal Years 182
Demographic and Economic Information - Last Ten Fiscal Years 183
Principal Employers - Current Year and Nine Years Ago 184
Full-Time Equivalent Employees - Last Ten Fiscal Years 185
Operating Indicators - Last Ten Fiscal Years 186 - 187
Capital Asset Statistics - Last Ten Fiscal Years 188
22
i
October 17, 2019
The Honorable Mayor Pandaleon
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,
2019, 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, 2019, 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, 2019, 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.
23
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, 2013-2017 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 one alderman
from each ward elected annually. 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.
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
169,122
855,500
82,613
251,400
61,229
179,700
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
24
iii
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 91 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 113.
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 2018, the City’s annual average unemployment rate was estimated to be 3.7%,
compared to 4.5% for Lake County and 4.3% 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 2019, the index was 135.7, up from
124.3 in June, and comparing favorably to the August 2018 index of 133.4. 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) 2004-2020, the City has reduced
budgeted full time employees by 47 positions (18%), 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 FY2019 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
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
25
iv
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 adopted a FY2019 budget that reduced the income
tax diversion from 10% to 5% and reduced the home rule sales tax administration fee from 2% to 1.5%,
which resulted in a positive impact on the City’s FY19 fiscal year finances. 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. FY2019 real estate transfer tax revenue totaled $1.5 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.
In FY2019, the City Council approved an increase to the Sanitation fee effective May 1, 2019. This measure
is estimated to provide an additional $300,000 in funding. The City Council approved moving the Sanitation
fee to the General Fund beginning in FY20 to align the revenue with the Sanitation Division operating
expenses. The Capital Fund Tax Levy has been increased for the Capital Fund to account for the Sanitation
26
v
fees moved to the General Fund. The City Council also approved an increase to the City’s Home Rule
Sales tax from .5% to 1% effective July 1, 2019 to provide for capital improvements.
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
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, 2019,
the most recent actuarial valuation date, the funded ratio for the Police Pension Plan is 50.3% and for the
Firefighters’ Pension Plan is 68.5%.
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, 2018,
the funded ratio for IMRF is 86.1%, 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 pension subcommittee established by the Mayor continues to discuss alternatives
for future consideration by the City Council.
Post-Retirement Benefits. The City provides post-employment health care benefits to retirees and eligible
dependents. Rising health care cost continue to pose financial challenges to the City.
27
vi
Implementation of GASB Statement No. 75, Accounting and Financial Report for Postemployment Benefits
Other Than Pensions, for FY2019 has resulted in significant changes to the reporting of post-employment
obligations in the City’s financial statements. In anticipation of these statements, the City made adjustments
to the City’s health plan by moving retirees over the age of 65 to a separate medical plan. These changes
reduced the City’s outstanding obligation.
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.
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 FY2019, 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 FY2019, with 84% of the apartments leased, 12
condos sold, 3 single family homes sold and 3 homes under contract and under construction as of
August 2019.
• 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
FY2019, construction was completed with a significant portion of the project funded from bonds
issued in May 2017.
• In October 2018, the City Council authorized $1,985,000 to repair the North Beach Access Road.
A Public/Private partnership was supported, resulting in donations in excess of $650,000 having
been received to fund the project.
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, 2018. This was the 40th 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,
Jason Wicha Elizabeth A. Holleb
City Manager Finance Director
28
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List of Principal Officials
Year Ended April 30, 2019
LEGISLATIVE
City Council
Robert Lansing, Mayor
Prue R. Beidler Melanie Rummel
James E. Morris Timothy Newman
James Preschlack Jack Reisenberg
Raymond P. Buschmann Michelle Moreno
AUDIT COMMITTEE
Vince Sparrow, Chairman
Tighe Magnuson
William McFadden
William Smith
Dean Stieber
Robert Lansing, Mayor (ex-officio)
James E. Morris, Finance Committee Chairman (ex-officio)
EXECUTIVE
Jason Wicha, City Manager
DEPARTMENT OF FINANCE
Elizabeth Holleb, Director of Finance
Diane Hall, Assistant Finance Director
30
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
31
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, 2019, 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 and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement. The financial
statements of the Lake Forest Library were not audited in accordance with Government Auditing Standards.
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.
32
To the Honorable Mayor and City Council
City of Lake Forest
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, 2019 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.
Emphasis of Matter
As discussed in Note I, the City of Lake Forest adopted the provisions of GASB Statement No. 75, Accounting
and Financial Reporting for Postemployment Benefits Other Than Pensions, effective May 1, 2018. Our
opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the 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.
33
To the Honorable Mayor and City Council
City of Lake Forest
Page 3
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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 17, 2019 on
our consideration of the City of Lake Forest's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of
Lake Forest's internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City of Lake Forest's internal
control over financial reporting and compliance.
Oak Brook, Illinois
October 17, 2019
34
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2019
Page 4
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 17).
Financial Highlights
• The City’s net position increased $2.3 million for the fiscal year ending April 30, 2019 (FY19).
Governmental net position increased $2.7 million and business-type net position decreased $.4 million.
• The governmental activities revenue increased by $3.7 million (6.9%) due to increased charges for
services, increased intergovernmental taxes and increased investment income, offset by decreases to
operating grants/contributions. The expenses increased by $4.9 million (9.7%) due primarily to
adjustments related to pensions and the addition of OPEB liabilities. Transfers decreased by $5.1 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 in FY2018.
• The business-type activities revenue increased by $.2 million (2%) primarily due to an increase in
operating grants and contributions in the Golf Fund, as well as temporary gain on sale of capital assets.
The City’s business-type activity expenses decreased by $19,000 (1%) due primarily to pension
adjustments and non-capitalized improvements. Transfers decreased by $5.1 million as discussed
above.
• The total cost of all City programs increased from $60.1 million in FY18 to $65.0 million in FY19 – an
increase of $4.9 million or 8.1% - attributable to pension adjustments and non-capitalized improvements.
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 17-19) 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 18-19) 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.
35
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2019
Page 5
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 20 and 22) 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 24 - 28) 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 21 and 23). 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.
36
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2019
Page 6
GOVERNMENT-WIDE STATEMENT
Statement of Net Position
The City’s combined net position increased by $2.3 million for FY19 – from $223.4 million to $225.7 million.
The analysis following will look at net position and net expenses of governmental and business-type
activities separately. The total net position for the governmental activities increased by $2.7 million – from
$173.9 million to $176.6 million. The business-type activities net position decreased by $.4 million – from
$49.5 million to $49.1 million. Table 1 reflects the condensed Statement of Net Position compared to FY18.
Table 2 will focus on the changes in net position of the governmental and business-type activities.
2018 2019 2018 2019 2018 2019
Current and Other Assets $92.7 $101.5 $15.2 $12.7 $107.9 $114.2
Capital Assets 199.0 196.7 58.7 58.5 257.7 255.2
Total Assets 291.7 298.2 73.9 71.2 365.6 369.4
Deferred Outflows 3.2 17.0 0.4 1.4 3.6 18.4
Long- Term Liabilities 80.2 98.7 21.7 21.5 101.9 120.2
Other Liabilities 7.2 9.4 2.3 1.8 9.5 11.2
Total Liabilities 87.4 108.1 24.0 23.3 111.4 131.4
Deferred Inflows 33.6 30.5 0.8 0.2 34.4 30.7
Net Position:
Net Investment in
Capital Assets 166.6 164.7 40.7 39.6 207.3 204.3
Restricted 20.2 26.7 0.0 0.0 20.2 26.7
Unrestricted (12.9) (14.8) 8.8 9.5 (4.1) (5.3)
Total Net Position $173.9 $176.6 $49.5 $49.1 $223.4 $225.7
Activities
Business-Type
Activities
Total Primary
Government
Table 1
Statement of Net Position
As of April 30, 2018 and 2019
(in millions)
Governmental
For more detailed information see the Statement of Net Position (page 17).
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.
37
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2019
Page 7
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 $2.3 million increase in combined net position (which is the City’s bottom line) was the result of
the governmental activities net position increasing by $2.7 million and the business-type activities net
position decreasing by $.4 million.
The governmental activities total assets increased by $6.5 million (>2.2%) while the governmental activities
total liabilities increased by $20.7 million (23.7%). With the implementation of GASB Statement No. 68,
Accounting and Financial Reporting for Pensions and GASB Statement No. 75, Accounting and Financial
Report for Postemployment Benefits Other Than Pensions long-term liabilities now include the net pension
liability and OPEB liability previously only disclosed in the notes to the financial statements. The increase
in total assets is primarily due to available cash balances. The increase in total liabilities is due primarily to
the increase in Net Pension Liability for the City’s three pension funds and the addition of the OPEB Liability.
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.
An increase in deferred outflows of $13.8 million related to pensions, while a decrease in deferred inflows
of $3.1 million related to pensions and an increase in property taxes levied for future periods.
Net investment in capital assets decreased by $1.9 million (1.1%) due to the expenditure of prior year bond
proceeds and depreciation and the pay down of G.O. Bonds that funded the capital assets. Restricted net
position increased $6.5 million largely due to excess fund balance from the General Fund transferred to the
Capital Improvement Fund for future capital improvements. Unrestricted net position increased by $1.9
million primarily due to the net effect of GASB 68 reporting of pension liabilities and GASB 75 reporting of
OPEB liabilities.
The net position of business-type activities decreased by $.4 million, from $49.5 million to $49.1 million.
The primary change in assets of the business-type activities was a decrease in capital assets as well as
expending unspent bond proceeds.
Long-term liabilities decreased by $.2 million due to scheduled maturities of debt obligations, offset by
increases to net pension liabilities. Net investment in capital assets decreased by $ 1.1 million due to bond-
funded capital improvements and expending unspent bond proceeds, and unrestricted net position
increased by $.7 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 $7.2 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 $2.3 million in FY19. The City’s total
revenues increased by $3.9 million, primarily driven by increased charges for services, property taxes,
intergovernmental taxes and interest income. The City’s cost of all programs increased by $4.9 million,
largely attributable to pension adjustments, as well as non-capitalized improvements
The chart on the following page compares the revenue and expenses for the current and previous fiscal
year.
38
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2019
Page 8
2018 2019 2018 2019 2018 2019
REVENUE
Program Revenue
Charges for Services $12.4 $13.7 $9.6 $9.3 $22.0 $23.0
Grants and Contributions
Operating 1.3 1.0 0.2 1.3 1.2
Capital 0.4 0.5 0.4 0.5
General Revenue
Property Taxes 26.2 27.6 26.2 27.6
Other Taxes 4.7 4.8 4.7 4.8
Intergovernmental - Taxes 6.8 7.4 6.8 7.4
Interest Revenue 1.7 2.2 1.7 2.2
Other 0.0 0.0 0.3 0.6 0.3 0.6
Total Revenue 53.5 57.2 9.9 10.1 63.4 67.3
EXPENSES
Governmental Activities
General Government 10.0 13.8 10.0 13.8
Highways and Streets 9.6 9.1 9.6 9.1
Sanitation 2.5 2.6 2.5 2.6
Culture and Recreation 10.0 8.8 10.0 8.8
Public Safety 17.0 19.8 17.0 19.8
Interest 1.3 1.2 1.3 1.2
Business-Type Activities
Water and Sewer 8.1 7.8 8.1 7.8
Golf 1.6 1.9 1.6 1.9
Total Expenses 50.4 55.3 9.7 9.7 60.1 65.0
Excess before Transfers 3.1 1.9 0.2 0.4 3.3 2.3
Transfers In (out)(4.3) 0.8 4.3 (0.8) 0.0 0.0
Change in Net Position (1.2) 2.7 4.5 (0.4) 3.3 2.3
Net Position - Beginning *175.1 173.9 45.0 49.5 220.1 223.4
Net Position - Ending $173.9 $176.6 $49.5 $49.1 $223.4 $225.7
Activities
Business-Type
Activities
Total Primary
Government
Table 2
Changes in Net Position
For the Fiscal Year Ended April 30, 2018 and 2019
(in millions)
Governmental
* Beginning Net Position restated. The effect of the implementation of GASB 75 on FY18 has been fully
adjusted to beginning net position. If actual valuations were available for the year ended 4/30/18,
adjustments to expense amounts may have been necessary to fully restate FY18.
39
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2019
Page 9
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
Property Tax
48%
Sales Tax
5%
Income Tax
4%
Utility Tax
4%
Real Estate
Transfer Tax
3%
Charges for
Services
24%Grants
3%
Other
5%
Inv Income
4%
FY2019 Governmental Activities Revenue
40
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2019
Page 10
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
General
Government
25%
Highways and
Streets
16%
Sanitation
5%
Culture and
Recreation
16%
Public Safety
36%
Interest on LT Debt
2%
FY2019 Governmental Activities Expenses
41
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2019
Page 11
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, 2019, revenues from governmental activities totaled $57.2 million,
increasing $3.7 million compared to FY18. The primary changes occurred in Charges for Services (up $1.3
million), Operating Grants and Contributions (down $.3 million), Intergovernmental Taxes (up $.6 million)
and Interest Revenue (up $.5 million). The increase in Charges for Services was largely due to one-time
permit fees collected in FY19. Intergovernmental Taxes increase was due primarily to income tax revenue
increased $.4 million. Investment income increased due to rising interest rates. Property tax revenue
continues to be the City’s single largest revenue source, contributing $27.6 million (48%) of governmental
activities revenue.
Property tax revenues combined with sales tax, the local utility tax, shared state income tax and real estate
transfer tax revenues total $36.8 million and represent 64% of the total governmental activities revenue.
42
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2019
Page 12
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 2018 equalized assessed valuation decreased .2% compared to the prior year and totaled
$2,526,924,079. 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 5.3% over FY18 in property taxes was
generated as a result of the City Council adopting a 4.43% increase in the levy and new growth. While the
tax cap applicable to this levy was 2.1%, the levies for debt service and capital improvements combined
exceeded the tax cap.
Investment income increased by $0.5 million, from $1.7 million to $2.2 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, 2019, expenses for governmental activities totaled $55.3 million, a
increase of $4.9 million (9.7%). The increase is due in large part to pension adjustments and the addition
of the post-retirement benefits. 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 FY19 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 $.2 million (2%) primarily due to an increase of
operating contributions in the Golf Fund, as well as investment income.
Expenses
The City’s business-type activity expenses remained constant in FY19.
43
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2019
Page 13
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds
At April 30, 2019, the governmental funds (as presented on the balance sheet on page 20) reported a
combined fund balance of $55.6 million which is a $5.5 million (11%) increase from the beginning of the
year ($50.1 million). This increase was largely driven by excess of revenues over expenditures in the
General Fund. The City Council elected to transfer the full FY19 operating surplus to the Capital
Improvement Fund to provide additional funding for capital improvements. Of the total fund balance of
$55.6 million, $.2 million is not available for continuing City services and capital projects, and $26.7 million
is restricted in its use. The unassigned fund balance for the total of all governmental funds is $28.8 million,
which is a $.3 million (1.0%) decrease 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 $.4 million or 1% from FY18 (from $29.3 million
to $28.9 million). The General Fund revenues increased by $2.2 million (6.1%) due primarily to higher
intergovernmental revenue, interest revenue and increases to Public Safety Pension fees. The General
Fund expenditures increased by $1.1 million (3.6%) due to personnel costs and increased principal
retirement. The excess of revenues over expenditures (before transfers) for FY19 of $6.7 million was $1.1
million more than FY18 ($5.6 million). The other financing sources (uses) for FY19 of $(7) million was
significantly higher than FY18 $(5.9) million due to one-time revenues being transferred to other funds for
capital improvements.
Property taxes increased $1 million, while other taxes increased $.1 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 2017 levy extension
(FY19 revenue) allowed for a 4.43% increase as well as new equalized assessed valuation growth.
General Fund expenditures increased overall due to personnel cost increases. General government
increased .5%, highways and streets increased 4% (personnel; snow and ice control), sanitation increased
8.7%, and public safety increased 8.5%. In addition, General Fund principal retirement decreased
$483,000 compared to FY18.
Original Final
General Fund Budget Budget Actual
Revenues:
Taxes $22.4 $22.4 $22.5
Intergovernmental 5.7 5.7 6.2
Other 7.3 7.3 9.3
Total 35.4 35.4 38.0
Expenditures and Transfers:
Expenditures 35.9 36.2 31.3
Transfers (Net)2.6 2.5 7.0
Total 38.5 38.7 38.3
Change in Fund Balance ($3.1)($3.3) ($0.3)
Table 3
General Fund Budgetary Highlights
(in millions)
44
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2019
Page 14
Actual General Fund revenues were higher than budgeted revenues by $2.6 million during FY19. The
primary variance resulted from building permit and investment revenues exceeding projections. Actual
General Fund expenditures and transfers were lower than the final budget by $.4 million. It is the City’s
policy to add 10%, which is $3.5 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
FY19. Additional information can be found on the schedule of revenues, expenditures and changes in fund
balance – budget and actual on page 91.
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 $8,498 thousand,
from $2.03 million to $2.02 million. The Parks and Recreation Fund revenues and expenditures were
consistent with the prior year. Total other financing sources (uses) were $(.5) million in FY18, but $(53,500)
in FY19, due to decreased transfers to the Golf Course Fund for capital improvements.
The Capital Improvements Fund is reported as a Major Fund for FY19 and is used to account for revenues
associated with City building and infrastructure projects. Fund balance of this fund increased by $5 million
in FY19. Compared to FY18, revenue increased by $1.5 million due to increases in property taxes, real
estate transfer taxes and grant reimbursements. Total expenditures increased by $.6 million in the capital
outlay category. Transfers in of $5.9 million for FY19 consisted of one time fund balance transfer of the
General Fund for one-time capital improvements.
The Debt Service Fund is reported as a Non-major Fund for FY19 and is used to account for revenues used
to retire non-Enterprise Fund obligations. Fund balance for FY19 increased by $.1 million, from $1.5 million
to $1.6 million.
CAPITAL ASSETS
2018 2019 2018 2019 2018 2019
Land and Im provements $38.2 $38.1 $0.5 $0.5 $38.7 $38.6
Infrastructure - Land 66.7 66.7 66.7 66.7
Construction in Progress 0.0 1.3 8.6 0.0 8.6 1.3
Infrastructure 54.9 53.6 54.9 53.6
Buildings 18.3 17.6 11.4 10.4 29.7 28.0
Improvements 16.9 15.5 23.5 33.2 40.4 48.7
Machinery and Equipment 4.0 3.9 1.7 1.7 5.7 5.6
Sanitary Sewers 0.0 0.0 13.0 12.7 13.0 12.7
Total $199.0 $196.7 $58.7 $58.5 $257.7 $255.2
Table 4
Capital Assets at Year End - 2018 and 2019
Net of Depreciation
(in millions)
Governmental
Activities
Business-Type
Activities
Total Primary
Government
At the end of FY19, the City had a combined total of $255.2 million invested in a broad range of capital
assets. This amount represents a net decrease (including additions and deductions) of $2.5 million. The
net increase is attributable to a $2.3 million decrease in governmental activities and a $.2 million decrease
in the business-type activities.
45
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2019
Page 15
The decrease in the governmental activities was due to depreciation exceeding additions by $2.2 million.
The decrease in business-type activities was due primarily to $.1 million of depreciation exceeding
additions.
The following reconciliation summarizes the changes in Capital Assets which are presented in detail on
pages 57-59 of the Notes.
Governmental Business-Type
Activities Activities Total
Beginning Balance $199.0 $58.7 $257.7
Additions
Depreciable 3.4 11.7 15.1
Construction in Progress 0.0 0.0
Retirements
Depreciable (0.4)(9.0)(9.4)
Depreciation (5.7)(3.1)(8.8)
Retirements 0.4 0.2 0.6
Ending Balance $196.7 $58.5 $255.2
Table 5
Change in Capital Assets
(in millions)
The increase in Business-Type Activities of $11.7 million and the decrease of $9 million was due to moving
the water plant improvement project from construction in progress to a depreciable asset.
Debt Outstanding
The City had $50.9 million of general obligation bonds outstanding at April 30, 2019. Of this amount $23.5
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 $5,519
and $4,105 if self-supporting debt is excluded.
The City operated as a home rule community for FY19. 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 62-64.
As of April 30, 2019, the City’s net pension liability is $64.4 million, an increase of $21.5 million compared
to the $42.9 million balance as of April 30, 2018. Additional information regarding the net pension liability
can be found in Note IV.
As of April 30, 2019, the City’s OPEB liability is $2.44 million, an increase of $.2 million compared to the
$2.42 million balance as of April 30, 2018. Additional information regarding the OPEB liability can be found
in Note IV.
46
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2019
Page 16
Economic Factors
Unemployment levels in Lake Forest are well below the levels for Lake County and the State of Illinois. For
calendar year 2018, the City’s annual average unemployment rate was estimated to be 3.7%, compared to
4.5% for Lake County and 4.3% 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.
47
BASIC FINANCIAL STAT EMENTS
48
CITY OF LAKE FOREST
STATEMENT OF NET POSITION
As of April 30, 2019
Primary Government Component Unit
Governmental
Activities
Business-type
Activities Totals
Lake Forest
Library
ASSETS
Cash and cash equivalents $59,331,141 $10,287,853 $69,618,994 $4,497,320
Investments 6,579,706 -6,579,706 -
Receivables (net)
Property taxes 28,006,568 -28,006,568 4,111,613
Other taxes 383,900 -383,900 10,060
Accounts 2,134,281 1,432,033 3,566,314 -
Loans 13,147 -13,147 -
Other 3,139,477 3,868 3,143,345 -
Due from other governments 1,454,205 -1,454,205 -
Internal balances (751,614)751,614 --
Inventories 394,865 78,770 473,635 -
Prepaid items 677,246 101,482 778,728 -
Due from fiduciary funds 126,463 -126,463 -
Capital Assets
Capital assets not being depreciated 106,161,487 441,413 106,602,900 238,500
Capital assets being depreciated, net of
accumulated depreciation 90,525,705 58,084,183 148,609,888 2,735,768
Total Assets 298,176,577 71,181,216 369,357,793 11,593,261
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 4,536 174,883 179,419 -
Deferred outflows of resources related to pensions 16,959,502 1,197,401 18,156,903 899,882
Deferred outflows related to total OPEB liability 26,656 2,624 29,280 1,093
Total Deferred Outflows of Resources 16,990,694 1,374,908 18,365,602 900,975
LIABILITIES
Accounts payable 3,461,056 1,221,968 4,683,024 50,464
Accrued liabilities 1,872,250 86,036 1,958,286 79,354
Accrued interest payable 346,817 200,477 547,294 -
Deposits 920,787 -920,787 -
Unearned revenue 2,828,305 305,167 3,133,472 -
Due to fiduciary funds 72,152 -72,152 -
Noncurrent Liabilities
Due within one year 1,850,851 2,072,000 3,922,851 7,352
Due in more than one year 96,756,505 19,385,717 116,142,222 1,779,625
Total Liabilities 108,108,723 23,271,365 131,380,088 1,916,795
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions 2,471,434 166,121 2,637,555 124,393
Property taxes levied for future periods 28,006,568 -28,006,568 4,111,613
Total Deferred Inflows of Resources 30,478,002 166,121 30,644,123 4,236,006
NET POSITION
Net investment in capital assets 164,675,251 39,610,155 204,285,406 2,971,916
Restricted for
Culture and recreation 3,333,955 -3,333,955 -
Highways and streets 1,019,023 -1,019,023 -
Public safety 663,539 -663,539 -
Cemetery purposes 7,767,095 -7,767,095 -
Affordable housing 1,339,808 -1,339,808 -
Capital projects 11,298,736 -11,298,736 -
Debt service 1,292,816 -1,292,816 -
Unrestricted (14,809,677)9,508,483 (5,301,194)3,369,519
TOTAL NET POSITION $176,580,546 $49,118,638 $225,699,184 $6,341,435
See accompanying notes to financial statements.
Page 1749
CITY OF LAKE FOREST
STATEMENT OF ACTIVITIES
For the Year Ended April 30, 2019
Program Revenues
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Primary Government
Governmental Activities
General government $13,773,790 $5,007,655 $235,318 $505,988
Highway and streets 9,081,471 2,730,122 491,827 -
Sanitation 2,580,043 749,620 --
Culture and recreation 8,859,391 3,117,795 218,928 -
Public safety 19,769,395 2,117,186 39,603 -
Interest on long-term debt 1,231,944 ---
Total Governmental Activities 55,296,034 13,722,378 985,676 505,988
Business-type Activities
Waterworks and Sewerage 7,832,615 7,818,777 --
Deerpath Golf Course 1,875,677 1,524,654 228,332 -
Total Business-type Activities 9,708,292 9,343,431 228,332 -
Total Primary Government $65,004,326 $23,065,809 $1,214,008 $505,988
Component Unit
Lake Forest Library $3,551,897 $47,198 $115,158 $-
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 (as restated)
NET POSITION - END OF YEAR
See accompanying notes to financial statements.
Page 1850
Net (Expenses) Revenues and Changes in Net Position
Primary Government Component Unit
Governmental
Activities
Business-type
Activities Totals
Lake Forest
Library
$(8,024,829)$-$(8,024,829)$-
(5,859,522)-(5,859,522)-
(1,830,423)-(1,830,423)-
(5,522,668)-(5,522,668)-
(17,612,606)-(17,612,606)-
(1,231,944)-(1,231,944)-
(40,081,992)-(40,081,992)-
-(13,838)(13,838)-
-(122,691)(122,691)-
-(136,529)(136,529)-
(40,081,992)(136,529)(40,218,521)-
---(3,389,541)
27,591,773 -27,591,773 4,063,010
604,891 -604,891 -
2,437,127 -2,437,127 -
1,471,595 -1,471,595 -
261,974 -261,974 -
2,095,938 -2,095,938 -
2,593,506 -2,593,506 -
1,166,254 -1,166,254 -
127,460 -127,460 36,944
1,416,128 299,176 1,715,304 -
2,215,202 279,189 2,494,391 131,747
41,981,848 578,365 42,560,213 4,231,701
7,775 -7,775 -
786,850 (786,850)--
42,776,473 (208,485)42,567,988 4,231,701
2,694,481 (345,014)2,349,467 842,160
173,886,065 49,463,652 223,349,717 5,499,275
$176,580,546 $49,118,638 $225,699,184 $6,341,435
See accompanying notes to financial statements.
Page 1951
CITY OF LAKE FOREST
BALANCE SHEET
GOVERNMENTAL FUNDS
As of April 30, 2019
General
Parks and
Recreation
Capital
Improvements
Nonmajor
Governmental
Funds Totals
ASSETS
Cash and cash equivalents $30,458,960 $2,477,275 $12,519,967 $6,601,056 $52,057,258
Investments ---6,579,706 6,579,706
Receivables (net)
Property taxes 18,704,847 5,703,799 1,713,889 1,884,033 28,006,568
Other taxes 383,900 ---383,900
Accounts 1,296,868 289,310 548,103 -2,134,281
Loans 13,147 ---13,147
Other ---738,836 738,836
Due from other governments 1,400,215 11,104 -42,886 1,454,205
Advances to other funds ---380,000 380,000
Due from other funds -125,000 383,686 -508,686
Due from fiduciary funds ---126,463 126,463
Inventories 37,534 528 --38,062
Prepaid items 91,746 --32,837 124,583
TOTAL ASSETS $52,387,217 $8,607,016 $15,165,645 $16,385,817 $92,545,695
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AN D FUND BALANCES
Liabilities
Accounts payable $543,479 $217,584 $1,736,396 $324,226 $2,821,685
Accrued liabilities 901,404 200,690 -27,131 1,129,225
Deposits 872,364 2,423 28,000 18,000 920,787
Unearned revenue 2,347,787 459,539 8,624 12,355 2,828,305
Due to other funds ---383,686 383,686
Due to fiduciary funds 72,152 ---72,152
Advances from other funds --380,000 -380,000
Total Liabilities 4,737,186 880,236 2,153,020 765,398 8,535,840
Deferred Inflows of Resources
Property taxes levied for a future period 18,704,847 5,703,799 1,713,889 1,884,033 28,006,568
Unavailable revenues --370,912 1,344 372,256
Total Deferred Inflows of Resources 18,704,847 5,703,799 2,084,801 1,885,377 28,378,824
Fund Balances
Nonspendable 129,280 528 -32,837 162,645
Restricted -2,022,453 10,927,824 13,705,891 26,656,168
Unassigned 28,815,904 --(3,686)28,812,218
Total Fund Balances 28,945,184 2,022,981 10,927,824 13,735,042 55,631,031
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES, AND
FUND BALANCES $52,387,217 $8,607,016 $15,165,645 $16,385,817 $92,545,695
See accompanying notes to financial statements.
Page 2052
CITY OF LAKE FOREST
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
As of April 30, 2019
Total Fund Balances - Governmental Funds $55,631,031
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.196,687,192
Less amount reported in internal service funds below.(4,109)
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.372,256
Deferred outflows of resources related to pensions do not relate to current financial
resources and are not reported in the governmental funds.16,959,502
Less amount reported in internal service funds below.(330,695)
Deferred inflows of resources related to pensions do not relate to current financial
resources and are not reported in the governmental funds.(2,471,434)
Less amount reported in internal service funds below.45,751
Deferred outflows of resources related to total OPEB liability do not relate to current
financial resources and are not reported in the governmental funds.26,656
Less amount reported in internal service funds below.(791)
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 (31,928,784)
Compensated absences (1,898,337)
Accrued interest (346,817)
Unamortized debt discount 19,237
Unamortized debt premium (106,931)
Net pension liabilities (62,473,470)
Total OPEB liability (2,219,071)
Less amount reported in internal service funds below.620,376
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.4,536
The net position of the internal service funds are included in the governmental
activities in the Statement of Net Position.7,994,448
NET POSITION OF GOVERNMENTAL ACTIVITIES $176,580,546
See accompanying notes to financial statements.
Page 2153
CITY OF LAKE FOREST
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
For the Year Ended April 30, 2019
General
Parks and
Recreation
Capital
Improvements
Nonmajor
Governmental
Funds Totals
REVENUES
Taxes:
Property $19,235,378 $5,665,011 $824,585 $1,866,799 $27,591,773
Other taxes 3,231,992 -1,507,595 36,000 4,775,587
Intergovernmental 6,172,591 40,787 -504,416 6,717,794
Licenses and permits 3,456,703 ---3,456,703
Fines, forfeitures and penalties 355,304 ---355,304
Charges for services 3,354,997 2,796,791 801,815 1,805,724 8,759,327
Grants and contributions 27,560 218,928 1,617,926 356,136 2,220,550
Investment income 859,448 99,238 172,285 912,165 2,043,136
Miscellaneous revenues 1,349,720 26,017 135,037 760 1,511,534
Total Revenues 38,043,693 8,846,772 5,059,243 5,482,000 57,431,708
EXPENDITURES
Current
General government 9,904,969 -862,041 890,255 11,657,265
Highways and streets 2,472,144 -2,100,515 4,998 4,577,657
Sanitation 2,480,420 ---2,480,420
Culture and recreation -8,628,206 99,822 591,841 9,319,869
Public safety 16,478,486 --421,862 16,900,348
Capital Outlay -173,564 2,951,767 846,664 3,971,995
Debt Service
Principal retirement ---1,429,625 1,429,625
Interest and fiscal charges ---1,242,498 1,242,498
Total Expenditures 31,336,019 8,801,770 6,014,145 5,427,743 51,579,677
Excess (deficiency) of revenues over expenditures 6,707,674 45,002 (954,902)54,257 5,852,031
OTHER FINANCING SOURCES (USES)
Transfers in -308,500 5,918,128 1,054,057 7,280,685
Transfers out (7,043,372)(362,000)-(239,313)(7,644,685)
Proceeds from capital asset sales --26,551 -26,551
Total Other Financing Sources (Uses)(7,043,372)(53,500)5,944,679 814,744 (337,449)
Net Change in Fund Balances (335,698)(8,498)4,989,777 869,001 5,514,582
FUND BALANCES - Beginning of Year 29,280,882 2,031,479 5,938,047 12,866,041 50,116,449
FUND BALANCES - END OF YEAR $28,945,184 $2,022,981 $10,927,824 $13,735,042 $55,631,031
See accompanying notes to financial statements.
Page 2254
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, 2019
Net change in fund balances - total governmental funds $5,514,582
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 2,249,091
Depreciation is reported in the government-wide financial statements (5,678,201)
Retirement of capital assets (18,777)
Less amount reported in internal service funds below 4,804
Contributed capital assets are reported as revenues in the government-wide financial statements.1,150,850
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 (407,884)
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 1,429,625
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 (3,206)
Debt premium 17,641
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 (30,631)
Accrued interest on debt 13,371
Amortization of deferred charge on refunding (17,253)
Net pension liability (19,732,585)
Deferred outflows of resources related to pensions 13,711,568
Deferred inflows of resources related to pensions 4,008,724
Deferred outflows of resources related to total OPEB liability 26,656
Total OPEB liability (11,890)
Less amount reported in internal service funds below (66,523)
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 534,519
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $2,694,481
See accompanying notes to financial statements.
Page 2355
CITY OF LAKE FOREST
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
As of April 30, 2019
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 $9,595,127 $692,726 $10,287,853 $7,273,883
Receivables
Accounts 1,423,763 8,270 1,432,033 -
Other 3,868 -3,868 2,400,641
Inventories -78,770 78,770 356,803
Prepaid items -101,482 101,482 552,663
Total Current Assets 11,022,758 881,248 11,904,006 10,583,990
Noncurrent Assets
Capital Assets
Capital assets not being depreciated 345,896 95,517 441,413 -
Capital assets being depreciated 115,224,140 5,477,306 120,701,446 48,047
Less: Accumulated depreciation (59,626,461)(2,990,802)(62,617,263)(43,938)
Total Noncurrent Assets 55,943,575 2,582,021 58,525,596 4,109
Total Assets 66,966,333 3,463,269 70,429,602 10,588,099
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 166,586 8,297 174,883 -
Deferred outflows of resources related to
pensions 1,173,846 23,555 1,197,401 330,695
Deferred outflows related to total OPEB
liability 2,584 40 2,624 791
Total Deferred Outflows of Resources 1,343,016 31,892 1,374,908 331,486
See accompanying notes to financial statements.
Page 2456
CITY OF LAKE FOREST
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
As of April 30, 2019
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 1,018,753 203,215 1,221,968 639,371
Accrued liabilities 81,898 4,138 86,036 743,025
Accrued interest payable 195,559 4,918 200,477 -
Unearned revenue 17,866 287,301 305,167 -
General obligation bonds 1,967,000 100,000 2,067,000 -
Compensated absences 4,981 19 5,000 -
Due to other funds -125,000 125,000 -
Total Current Liabilities 3,286,057 724,591 4,010,648 1,382,396
Noncurrent Liabilities
Long-Term Debt
General obligation debt payable 16,637,487 385,837 17,023,324 -
Compensated absences 251,522 2,006 253,528 33,856
Net pension liability 1,852,956 37,469 1,890,425 520,632
Total OPEB liability 215,109 3,331 218,440 65,888
Total Noncurrent Liabilities 18,957,074 428,643 19,385,717 620,376
Total Liabilities 22,243,131 1,153,234 23,396,365 2,002,772
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to
pensions 162,828 3,293 166,121 45,751
Total Deferred Inflows of Resources 162,828 3,293 166,121 45,751
NET POSITION
Net investment in capital assets 37,505,674 2,104,481 39,610,155 4,109
Unrestricted 8,397,716 234,153 8,631,869 8,866,953
TOTAL NET POSITION $45,903,390 $2,338,634 48,242,024 $8,871,062
Adjustments to reflect the consolidation of
internal service funds activities related to
enterprise funds.876,614
Net Position of Business-type Activities
reported in the government-wide statement of
net position.$49,118,638
See accompanying notes to financial statements.
Page 2557
CITY OF LAKE FOREST
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended April 30, 2019
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 $7,909,200 $1,524,408 $9,433,608 $8,575,363
Connection fees 134,681 -134,681 -
Miscellaneous 7,998 246 8,244 -
Total Operating Revenues 8,051,879 1,524,654 9,576,533 8,575,363
OPERATING EXPENSES
General and administrative 2,422,300 643,885 3,066,185 8,176,059
Operations and maintenance 1,946,923 977,825 2,924,748 -
Depreciation and amortization 2,857,116 253,643 3,110,759 4,804
Total Operating Expenses 7,226,339 1,875,353 9,101,692 8,180,863
Operating Income (Loss)825,540 (350,699)474,841 394,500
NONOPERATING REVENUES (EXPENSES)
Investment income 269,245 9,944 279,189 172,066
Loss on disposal of capital assets (19,363)-(19,363)-
Interest expense (600,846)(16,874)(617,720)-
Paying agent fees (1,500)-(1,500)-
Other 14,710 51,300 66,010 -
Total Nonoperating Revenues
(Expenses)(337,754)44,370 (293,384)172,066
Income (Loss) Before Transfers 487,786 (306,329)181,457 566,566
TRANSFERS
Capital contributions (1,150,850)228,332 (922,518)-
Transfers in 2,000 362,000 364,000 -
Total Transfers (1,148,850)590,332 (558,518)-
Change in Net Position (661,064)284,003 (377,061)566,566
NET POSITION - Beginning of Year (as
restated)46,564,454 2,054,631 48,619,085 8,304,496
NET POSITION- END OF YEAR $45,903,390 $2,338,634 $48,242,024 $8,871,062
Adjustment to change in net position to reflect
the consolidation of internal service funds
activities related to enterprise funds 32,047
Change in Net Position of Business-type
Activities reported in the government-wide
statement of activities.$(345,014)
See accompanying notes to financial statements.
Page 2658
CITY OF LAKE FOREST
STATEMENT OF CASH FLOW S
PROPRIETARY FUNDS
For the Year Ended April 30, 2019
Business-type Activities - Enterprise Funds
Waterworks
and Sewerage
Nonmajor
Enterprise
Fund -
Deerpath Golf
Course Totals
Governmental
Activities -
Internal
Service Funds
CASH FLOWS FROM OPERATING
AC TIVITIES
Received from customers $7,997,829 $1,523,077 $9,520,906 $8,068,797
Paid to suppliers for goods and services (2,719,962)(1,074,878)(3,794,840)(7,562,898)
Paid to employees (2,422,843)(656,910)(3,079,753)(594,681)
Net Cash Flows From Operating
Activities 2,855,024 (208,711)2,646,313 (88,782)
CASH FLOWS FROM INVESTING
AC TIVITIES
Interest received 269,245 9,944 279,189 172,065
Net Cash Flows From Investing
Activities 269,245 9,944 279,189 172,065
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from (to) other funds 2,000 225,995 227,995 -
Miscellaneous 14,710 -14,710 -
Net Cash Flows From Noncapital
Financing Activities 16,710 225,995 242,705 -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Principal paid (1,909,000)(78,000)(1,987,000)-
Interest paid (565,055)(14,968)(580,023)-
Acquisition and construction of capital
assets (3,519,891)(20,089)(3,539,980)-
Other - paying agent fees (1,500)-(1,500)-
Net Cash Flows From Capital and
Related Financing Activities (5,995,446)(113,057)(6,108,503)-
Net Change in Cash and Cash
Equivalents (2,854,467)(85,829)(2,940,296)83,283
CASH AND CASH EQUIVALENTS - Beginning
of Year 12,449,594 778,555 13,228,149 7,190,600
CASH AND CASH EQUIVALENTS - END
OF YEAR $9,595,127 $692,726 $10,287,853 $7,273,883
See accompanying notes to financial statements.
Page 2759
CITY OF LAKE FOREST
STATEMENT OF CASH FLOW S
PROPRIETARY FUNDS
For the Year Ended April 30, 2019
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)$825,540 $(350,699)$474,841 $394,500
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Flows From
Operating Activities
Depreciation 2,857,116 253,643 3,110,759 4,805
Changes in assets and liabilities
Accounts receivable (54,115)(4,999)(59,114)(506,566)
Inventories -(9,449)(9,449)(24,352)
Prepaid items -(94,902)(94,902)50
Deferred outflows related to pensions (1,085,909)(22,142)(1,108,051)(296,274)
Accounts payable (773,068)7,298 (765,770)72,467
Accrued liabilities 11,292 (17,388)(6,096)36,837
Net pension liability 1,707,709 35,118 1,742,827 470,536
Deferred inflows related to pensions (660,216)(10,026)(670,242)(238,117)
Unearned revenue 65 3,422 3,487 -
Compensated absences 27,524 1,413 28,937 (238)
Deferred outflows related to OPEB (2,584)(40)(2,624)(791)
Total OPEB liability 1,670 40 1,710 (1,639)
NET CASH FLOWS FROM
OPERATING ACTIVITIES $2,855,024 $(208,711)$2,646,313 $(88,782)
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
Capital contributions $-$228,332 $-
See accompanying notes to financial statements.
Page 2860
CITY OF LAKE FOREST
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
As of April 30, 2019
Private
Purpose Trust Pension Trusts Agency Fund
ASSETS
Cash $-$621,309 $60,174
Money markets 42,426 360,405 -
Investments
U.S. Treasury obligations -14,313,201 -
U.S. Government agencies -3,777,009 -
Municipal/corporate bonds -7,078,846 -
Equity securities 321,015 --
Mutual funds 319,370 41,968,905 -
Real estate investment fund -3,662,142 -
Interest receivable -183,103 -
Prepaid items -8,472 -
Due from primary government -72,152 -
Total Assets 682,811 72,045,544 60,174
LIABILITIES
Accounts payable 271 9,198 -
Due to primary government 126,463 --
Due to special assessment districts --60,174
Total Liabilities 126,734 9,198 60,174
NET POSITION
Restricted for pension benefits -72,036,346 -
Restricted for other purposes 556,077 --
TOTAL NET POSITION $556,077 $72,036,346 $-
See accompanying notes to financial statements.
Page 2961
CITY OF LAKE FOREST
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
For the Year Ended April 30, 2019
Private
Purpose Trust Pension Trusts
AD DITIONS
Contributions
Employer $-$4,224,026
Employee -703,933
Total Contributions -4,927,959
Investment income
Interest 18,611 1,350,177
Net appreciation in fair value of investments 39,137 3,544,084
Total Investment Income 57,748 4,894,261
Less Investment expense -145,686
Net Investment Income 57,748 4,748,575
Total Additions 57,748 9,676,534
DEDUCTIONS
Pension benefits and refunds -5,434,163
Other administrative expenses 39,943 113,445
Total Deductions 39,943 5,547,608
Change in Net Position 17,805 4,128,926
NET POSITION - Beginning of Year 538,272 67,907,420
NET POSITION - END OF YEAR $556,077 $72,036,346
See accompanying notes to financial statements.
Page 3062
CITY OF LAKE FOREST
INDEX TO NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE Page
I Summary of Significant Accounting Policies 32
A.Reporting Entity 32
B.Government-W ide and Fund Financial Statements 34
C.Measurement Focus, Basis of Accounting, and Financial Statement
Presentation 37
D.Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of
Resources and Net Position or Equity 39
1.Deposits and Investments 39
2.Receivables 43
3.Inventories and Prepaid Items 44
4.Capital Assets 44
5.Deferred Outflows of Resources 45
6.Compensated Absences 46
7.Long-Term Obligations 46
8.Deferred Inflows of Resources 46
9. Equity Classifications 47
II Stewardship, Compliance, and Accountability 49
A.Budgetary Information 49
B.Deficit Balances 49
III Detailed Notes on All Funds 50
A.Deposits and Investments 50
B.Receivables 56
C.Capital Assets 57
D.Interfund Advances and Transfers 60
E.Long-Term Obligations 62
F.Lease Disclosures 64
G.Fund Balances 65
H.Restatement of Net Position 66
IV Other Information 67
A.Employees' Retirement System 67
B.Risk Management 82
C.Joint Ventures 84
D.Commitments and Contingencies 85
E.Other Postemployment Benefits 85
F.Laurel and W estern Tax Increment Financing (TIF) District 89
G.Effect of New Accounting Standards on Current-Period Financial Statements 90
See accompanying notes to financial statements.
Page 3163
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 3264
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 3365
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
In June 2015, the GASB issued statement No. 75 - Accounting and Financial Reporting for
Postemployment Benefits Other than Pensions. This Statement replaces the requirements of Statements
No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-
Employer Plans, for OPEB. This standard was implemented May 1, 2018.
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 3466
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 3567
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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/W estern 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 3668
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 3769
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 3870
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 3971
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 4072
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 4173
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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%2.10%
Domestic Equities 36%5.60%
International Equities 18%5.80%
Real Estate 10%5.20%
Cash 1%0.40%
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 investm ent 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 4274
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 3.10%1.2%
US Fixed Income 33.30%2.2%
US Large Cap Growth Equity 24.70%6.9%
US Large Cap Value Equity 23.00%7.2%
US Mid Cap Growth Equity 3.70%8.0%
US Mid Cap Value Equity 2.50%8.0%
US Small Cap Value Equity 1.50%8.0%
Europe Equity 3.20%6.5%
Japan Equity 3.40%6.4%
Equity Return Assets 1.60%5.3%
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 2018 are prepared by Lake County and issued in May 2019 and are payable in two
installm ents, on or about June 1, 2019 and September 1, 2019 or within 30 days of the tax bills being
issued.
Page 4375
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 2018 property tax levy is recognized as a
receivable and deferral in fiscal 2019, net the 1.5% allowance for uncollectible. As the taxes become
available to finance current expenditures, they are recognized as revenues. At April 30, 2019, the property
taxes receivable and related deferred inflows consisted of the estimated amount collectible from the 2018
levy.
Property taxes for levy year 2019 attaches as an enforceable lien on January 1, 2019, 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 2019 tax levy, which attached as an enforceable lien on the property as of January
1, 2019, has not been recorded as a receivable as of April 30, 2019, as the tax has not yet been levied by
the City and will not be levied until December 2019, and therefore, the levy is not measurable at April 30,
2019.
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 4476
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 4577
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 4678
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 4779
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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. W hen 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 4880
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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.
B.DEFICIT BALANCES
Generally accepted accounting principles require disclosure of individual funds that have deficit balances
at year end.
As of April 30, 2019, the following individual funds held a deficit balance:
Fund Amount
Laurel/W estern Redevelopment
TIF Improvements
$3,686
Page 4981
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 $52,926,470 $53,302,837 Custodial Credit Risk -
Deposits
Money markets 720,799 720,799 Custodial Credit Risk -
Deposits
U.S. government agencies - implicitly
guaranteed
3,777,009 3,777,009 Credit Risk, Custodial
Credit Risk - Investments,
Concentration of Credit
Risk, Interest Rate Risk
Mutual funds - other than bonds 43,665,446 43,665,446 N/A
U.S. treasury obligations 14,313,201 14,313,201 Custodial Credit Risk -
Investments, Interest
Rate Risk
Real estate investment fund 3,662,142 3,662,142 Custodial Credit Risk -
Investments
Corporate bonds 6,473,598 6,473,598 Credit Risk, Custodial
Credit Risk - Investments,
Concentration of Credit
Risk, Interest Rate Risk
Municipal bonds 605,248 605,248 Credit Risk, Custodial
Credit Risk - Investments,
Concentration of Credit
Risk, Interest Rate Risk
Illinois funds 21,731,174 21,731,174 Credit Risk
Equity securities 4,616,900 4,616,900 Custodial Credit Risk -
Investments, Foreign
Currency Risk
Mutual funds - bond funds 718,110 718,110 Credit Risk, Interest Rate
Risk
Petty cash 10,725 -N/A
Total Deposits and Investments $153,220,822 $153,586,464
Page 5082
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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
$69,618,994
Investments - primary government 6,579,706
Cash and cash equivalents - Lake Forest
Library
4,497,320
Per statement of net position - fiduciary funds
Private Purpose Trust - money markets 42,426
Private Purpose Trust - equity securities 321,015
Private Purpose Trust - mutual funds 319,370
Agency Fund - cash 60,174
Pension Trusts - cash 621,309
Pension Trusts - money markets 360,405
Pension Trusts - U.S. treasury obligations 14,313,201
Pension Trusts - U.S. government agencies 3,777,009
Pension Trusts - Municipal/corporate bonds 7,078,846
Pension Trusts - mutual funds 41,968,905
Pension Trusts - real estate investment fund 3,662,142
Total Deposits and Investments $153,220,822
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 5183
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
As of April 30, 2019, the City's investments were measured using the market value valuation technique
and the valuation inputs as follows:
April 30, 2019
Investment Type Level 1 Level 2 Level 3 Total
Equity securities $4,295,885 $-$-$4,295,885
Mutual funds - bond funds 588,075 --588,075
Mutual funds - other than bond funds 1,507,206 --1,507,206
Total $6,391,166 $-$-$6,391,166
Private Purpose Trust
April 30, 2019
Investment Type Level 1 Level 2 Level 3 Total
Equity securities $321,015 $-$-$321,015
Mutual funds - bond funds 130,035 --130,035
Mutual funds - other than bond funds 189,335 --189,335
Total $640,385 $-$-$640,385
Police Pension Fund
April 30, 2019
Investment Type Level 1 Level 2 Level 3 Total
U.S. treasury obligations $10,242,088 $-$-$10,242,088
U.S. government agencies -229,326 -229,326
Mutual funds - other than bond funds 17,719,414 --17,719,414
Corporate bonds -957,459 -957,459
Total $27,961,502 $1,186,785 $-$29,148,287
Page 5284
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
The Police Pension Fund holds an investment in a real estate investment fund that is measured at the net
asset value per share (or its equivalent). The fair value of this investment is $3,662,142 with no unfunded
commitments. The investment is in one real-estate fund which invests in high quality, well-leased real
estate properties in multifamily, industrial, office, retail, and hotel sectors. Because it is not probable that
any individual investment will be sold, the fair value of each individual investment has been determined
using the NAV per share (or its equivalent).
Firefighter's Pension Fund
April 30, 2019
Investment Type Level 1 Level 2 Level 3 Total
U.S. treasury obligations $4,071,113 $-$-$4,071,113
U.S. government agencies -3,547,683 -3,547,683
Municipal bonds -605,248 -605,248
Corporate bonds -5,516,139 -5,516,139
Mutual funds - other than bond funds 24,249,491 --24,249,491
Total $28,320,604 $9,669,070 $-$37,989,674
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.
Page 5385
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
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.
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, 2019, 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 Funds 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.
Page 5486
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
Interest Rate Risk (cont.)
The Police Pension Fund's investment policy does not limit the length of maturity of investments since it is
passively managing its fixed income exposure to the Barclays Capital Intermediate Government Index.
Although the Firefighters' Pension Fund's investment policy does not specifically limit the length of maturity
of investments, it manages interest rate risk by investing fixed income assets in proportion to the present
value of the Fund's projected liabilities.
As of April 30, 2019, 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 $10,242,088 $-$6,464,921 $3,777,167
U.S. government agencies 229,326 -229,326 -
Corporate bonds 957,459 144,655 751,370 61,434
Totals $11,428,873 $144,655 $7,445,617 $3,838,601
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 $4,071,113 $1,245,158 $875,905 $748,845 $1,201,205
U.S. government agencies 3,547,683 1 274,152 976,602 2,296,928
Municipal bonds 605,248 94,709 510,539 --
Corporate bonds 5,516,139 183,646 2,307,570 1,997,490 1,027,433
Totals $13,740,183 $1,523,514 $3,968,166 $3,722,937 $4,525,566
The City has $718,110 invested in mutual funds - bond funds that have a maturity of less than one year.
Page 5587
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
Money-Weighted Rate of Return
Police Pension Fund
For the year ended April 30, 2019, the annual money-weighted rate of return on the police pension plan
investments, net of pension plan investment expense, was 5.48%. The money-weighted rate of return
expresses investment performance, net of investment expense, adjusted for the changing amounts
actually invested.
Firefighters' Pension Fund
For the year ended April 30, 2019, the annual money-weighted rate of return on the firefighters' pension
plan investments, net of pension plan investment expense, was 8.56%. 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 5688
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
C.CAPITAL ASSETS
Capital asset activity for the year ended April 30, 2019, was as follows:
Beginning
Balance Additions Deletions
Ending
Balance
Governmental Activities
Capital assets not being depreciated
Land and land improvements $38,151,509 $-$18,776 $38,132,733
Infrastructure - land 66,740,770 --66,740,770
Construction in progress 53,180 1,268,424 33,620 1,287,984
Total Capital Assets Not Being
Depreciated 104,945,459 1,268,424 52,396 106,161,487
Capital assets being depreciated
Infrastructure 184,810,434 1,186,673 -185,997,107
Buildings 30,002,059 --30,002,059
Improvements other than buildings 33,700,625 67,240 -33,767,865
Machinery and equipment 17,559,929 911,224 375,454 18,095,699
Total Capital Assets Being
Depreciated 266,073,047 2,165,137 375,454 267,862,730
Total Capital Assets 371,018,506 3,433,561 427,850 374,024,217
Less: Accumulated depreciation for
Infrastructure (129,878,134)(2,543,811)-(132,421,945)
Buildings (11,720,714)(658,228)1 (12,378,943)
Improvements other than buildings (16,830,557)(1,450,266)-(18,280,823)
Machinery and equipment (13,604,872)(1,025,896)(375,454)(14,255,314)
Total Accumulated Depreciation (172,034,277)(5,678,201)(375,453)(177,337,025)
Net Capital Assets Being
Depreciated 94,038,770 (3,513,064)1 90,525,705
Total Governmental Activities
Capital Assets, Net of
Accumulated Depreciation $198,984,229 $(2,244,640)$52,397 $196,687,192
Depreciation expense was charged to functions as follows:
Governmental Activities
General government $1,764,432
Highways and streets 2,687,430
Sanitation 142,021
Culture and recreation 900,297
Public safety 184,021
Total Governmental Activities Depreciation Expense $5,678,201
Page 5789
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 8,679,570 -8,679,570 -
Total Capital Assets Not Being
Depreciated 9,120,983 -8,679,570 441,413
Capital assets being depreciated
Buildings 27,020,235 --27,020,235
Improvements other than buildings 46,302,076 11,014,503 6,962 57,309,617
Machinery and equipment 5,246,316 304,437 206,132 5,344,621
Sanitary sewers and related property 30,778,741 349,204 100,972 31,026,973
Total Capital Assets Being
Depreciated 109,347,368 11,668,144 314,066 120,701,446
Total Capital Assets 118,468,351 11,668,144 8,993,636 121,142,859
Less: Accumulated depreciation for
Buildings (15,602,414)(1,003,574)-(16,605,988)
Improvements other than buildings (22,825,821)(1,235,997)(3,522)(24,058,296)
Machinery and equipment (3,533,906)(295,980)(206,133)(3,623,753)
Sanitary sewers and related property (17,839,003)(575,207)(84,984)(18,329,226)
Total Accumulated Depreciation (59,801,144)(3,110,758)(294,639)(62,617,263)
Net Capital Assets Being
Depreciated 49,546,224 8,557,386 19,427 58,084,183
Business-type Capital
Assets, Net of Accumulated
Depreciation $58,667,207 $8,557,386 $8,698,997 $58,525,596
Page 5890
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 168,500 --168,500
Total Capital Assets Not Being
Depreciated 238,500 --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 3,990,776 358,484 341,372 4,007,888
Total Capital Assets Being
Depreciated 7,442,776 358,484 341,372 7,459,888
Total Capital Assets 7,681,276 358,484 341,372 7,698,388
Less: Accumulated depreciation for
Buildings (724,180)(23,036)-(747,216)
Improvements other than buildings (1,417,806)(125,020)-(1,542,826)
Machinery and equipment (2,414,489)(360,961)(341,372)(2,434,078)
Total Accumulated Depreciation (4,556,475)(509,017)(341,372)(4,724,120)
Net Capital Assets Being
Depreciated 2,886,301 (150,533)-2,735,768
Total Component Unit
Capital Assets, Net of
Accumulated Depreciation $3,124,801 $(150,533)$-$2,974,268
Page 5991
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 $125,000
Capital Improvements Laurel/W estern Redevelopment TIF 383,686
Total - Fund Financial Statements 508,686
Less: Interfund receivables created with internal service fund
eliminations (876,614)
Less: Government-wide eliminations (383,686)
Total Internal Balances - Government-W ide Statement of Net
Position $(751,614)
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 W ithin One
Year
Laurel/W estern Redevelopment TIF Capital Improvements $380,000 $380,000
Total - Fund Financial Statements 380,000
Less: Fund eliminations (380,000)
Total - Internal Balances - Government-W ide Statement of Net
Position $-
The principal purpose of the advance between the Laurel/W estern Redevelopment TIF Fund and the
Capital Improvements Fund is to repay the Laurel/W estern 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 6092
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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
Water and Sewer General 2,000 Transfer for operations
Nonmajor government General 240,529 Transfer for operations
Nonmajor government General 574,215 Transfer for debt service
Nonmajor government Nonmajor government 239,313 Transfer for debt service
Capital Improvement General 5,918,128 Transfer for capital outlay
Nonmajor enterprise Parks and Recreation 362,000 Transfer for debt service
Total - Fund Financial Statements 7,644,685
Less: Government-wide eliminations (7,280,685)
Plus: Capital contribution from Business-type
Activities to Governmental Activities (1,150,850)
Total Transfers - Government-W ide Statement
of Activities $(786,850)
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 6193
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
E.LONG-TERM OBLIGATIONS
Long-term obligations activity for the year ended April 30, 2019, was as follows:
Beginning
Balance Increases Decreases
Ending
Balance
Amounts Due
Within One
Year
Governmental Activities
Bonds and Notes Payable
General obligation bonds $33,358,409 $-$1,429,625 $31,928,784 $1,730,851
Premiums 124,572 -17,641 106,931 -
Discount (22,443)-(3,206)(19,237)-
Sub-totals 33,460,538 -1,444,060 32,016,478 1,730,851
Other Liabilities
Compensated absences 1,867,706 2,408,891 2,378,260 1,898,337 120,000
Total OPEB liability 2,207,181 126,431 114,541 2,219,071 -
Net pension liability 42,740,885 25,279,573 5,546,988 62,473,470 -
Total Other Liabilities 46,815,772 27,814,895 8,039,789 66,590,878 120,000
Total Governmental
Activities Long-Term
Liabilities $80,276,310 $27,814,895 $9,483,849 $98,607,356 $1,850,851
Business-type Activities
Bonds Payable
General obligation bonds $20,962,000 $-$1,987,000 $18,975,000 $2,067,000
Premium 149,864 -34,540 115,324 -
Sub-totals 21,111,864 -2,021,540 19,090,324 2,067,000
Other Liabilities
Compensated absences 229,591 260,259 231,322 258,528 5,000
Capital leases 30,685 -28,333 2,352 2,352
Total OPEB liability 216,730 12,985 11,275 218,440 -
Net pension liability 147,598 1,955,010 212,183 1,890,425 -
Total Other Liabilities 624,604 2,228,254 483,113 2,369,745 7,352
Total Business-type
Activities Long-Term
Liabilities $21,736,468 $2,228,254 $2,504,653 $21,460,069 $2,074,352
Component Unit - Lake Forest
Library
Compensated absences $204,555 $138,800 $178,869 $164,486 $5,000
Capital leases 30,685 -28,333 2,352 2,352
Total OPEB liability 210,250 12,081 17,766 204,565 -
Net pension liability 127,514 1,446,945 158,885 1,415,574 -
Total Other Liabilities 573,004 1,597,826 383,853 1,786,977 7,352
Total Component Unit
Long-Term Liabilities $573,004 $1,597,826 $383,853 $1,786,977 $7,352
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 6294
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
E.LONG-TERM OBLIGATIONS (cont.)
General Obligation Bonds (cont.)
Governmental Activities
General Obligation Bonds
Date of
Issue
Final
Maturity
Interest
Rates
Original
Indebtedness
Balance
April 30, 2019
Special Service Area 25 5/1/2003 12/15/2022 1.95-2.95%$1,050,000 $285,000
Special Service Area 26 10/7/2003 12/15/2022 2.50-3.40%276,500 77,275
Special Service Area 29 12/20/2004 12/15/2023 2.55-3.65%2,000,000 686,509
2009 Series 5/14/2009 12/15/2028 2.00-4.10%3,680,000 2,315,000
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 4,495,000
2011 Series B 9/6/2011 12/15/2023 1.00-3.00%4,470,000 2,465,000
2013 Series 9/16/2013 12/15/2032 2.00-4.00%9,715,000 9,235,000
2015 Series 8/3/2015 12/15/2036 2.50-3.75%9,780,000 9,370,000
Total Governmental Activities - General Obligation Bonds $31,928,784
Business-type Activities
General Obligation Bonds
Date of
Issue
Final
Maturity
Interest
Rates
Original
Indebtedness
Balance
April 30, 2019
2011 Series A 9/6/2011 12/15/2020 1.50-3.00%$1,195,000 $270,000
2011 Series B 9/6/2011 12/15/2023 1.00-3.00%20,355,000 9,410,000
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 $18,975,000
Debt service requirements to maturity are as follows:
Governmental Activities Business-type Activities
General Obligation Bonds General Obligation Bonds
Years Principal Interest Principal Interest
2020 $1,730,851 $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 2,153,610 951,037 1,862,000 311,563
2025-2029 8,765,000 3,790,343 2,755,000 1,170,013
2030-2034 11,920,000 1,594,713 3,140,000 775,588
2035-2038 1,020,000 74,725 2,885,000 251,463
Totals $31,928,784 $10,886,116 $18,975,000 $4,317,520
Page 6395
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
E.LONG-TERM OBLIGATIONS (cont.)
Other Debt Information
Estimated payments of compensated absences, total OPEB liability, 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. Total OPEB liability and the Police and Firefighters' net pension liability will be
liquidated by the General Fund.
F. LEASE DISCLOSURES
Lessee - Capital Leases
In 2017 the City 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
minim um lease payments as of April 30, 2019, are as follows:
Component Unit
Years Principal Interest Totals
2020 $2,352 $2 $2,354
Totals $2,352 $2 $2,354
Page 6496
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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, 2019, include the
following:
General Fund
Parks and
Recreation
Fund
Capital
Improvements
Fund
Nonmajor
Governmental
Funds Totals
Fund Balances
Nonspendable:
Prepaid items $91,746 $-$-$32,837 $124,583
Inventories 37,534 528 --38,062
Sub-total ----162,645
Restricted for:
Culture and
recreation -2,022,453 -1,306,824 3,329,277
Highway and streets ---1,017,679 1,017,679
Public safety - fire ---197,616 197,616
Public safety -
police ---437,236 437,236
Cemetery perpetual
care ---7,767,095 7,767,095
Affordable housing ---1,339,808 1,339,808
Capital projects --10,927,824 -10,927,824
Debt service ---1,639,633 1,639,633
Sub-total ----26,656,168
Unassigned:28,815,904 --(3,686)28,812,218
Total Fund
Balances $28,945,184 $2,022,981 $10,927,824 $13,735,042 $55,631,031
Page 6597
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
H.RESTATEMENT OF NET POSITION
Net position has been restated due to the implementation of GASB No. 75. The restatement is necessary
to record the prior year total other postemployment liability.
Governmental
Activities
Business-Type
Activities
Net position as of April 30, 2018 (as reported)$175,794,278 $48,835,815
Adjustment to record the total OPEB liability, related deferred
inflows and deferred outflows as of April 30, 2018 (2,207,181)(216,730)
Adjustment to remove prior year net OPEB obligation 298,968 -
Net position as of April 30, 2018 (as restated)$173,886,065 $48,619,085
Waterworks &
Sewerage Fund
Deerpath Golf
Course Fund
Net position as of April 30, 2018 (as reported)$46,777,893 $2,057,922
Adjustment to record the total OPEB liability, related deferred
inflows and deferred outflows as of April 30, 2018 (213,439)(3,291)
Net position as of April 30, 2018 (as restated)$46,564,454 $2,054,631
Internal Service
Funds
Lake Forest
Library
Net position as of April 30, 2018 (as reported)$8,372,023 $5,617,995
Adjustment to record the total OPEB liability, related deferred
inflows and deferred outflows as of April 30, 2018 (67,527)(210,250)
Adjustment to remove prior year net OPEB obligation -91,530
Net position as of April 30, 2018 (as restated)$8,304,496 $5,499,275
Page 6698
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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.
Em ployees 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, 2018, the measurement date, membership in the plan was as
follows:
Retirees and beneficiaries 279
Inactive, non-retired members 174
Active members 186
Total 639
Page 6799
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 2018 was
12.53% 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, 2018,
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, 2018 using the following actuarial methods and assumptions:
Actuarial cost method Entry Age Normal
Asset valuation method Market Value
Actuarial assumptions
Investment Rate of Return 7.25%
Salary increases 3.39% to 14.25%,
including inflation
Price inflation 2.50%
Mo rtality. For non-disabled retirees, an IMRF specific mortality table was used with fully generational
projection scale MP-2017 (base year 2015). 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-
2017 (base year 2015). 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-2017
(base year 2015). The IMRF specific rates were developed from the RP-2014 Employee Mortality Table
with adjustments to match current IMRF experience.
Page 68100
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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%8.50%7.15%
International equities 18.00%9.20%7.25%
Fixed income 28.00%3.75%3.75%
Real estate 9.00%7.30%6.25%
Alternatives 7.00%
Private equity 12.40%8.50%
Hedge funds 5.75%5.50%
Commodities 4.75%3.20%
Cash equivalents 1.00%2.50%2.50%
Discount rate.The discount rate used to measure the total pension liability for IMRF was 7.25%. The
discount rate calculated using the December 31, 2017 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 69101
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 7.25% 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 (6.25%) or 1 percentage point higher
(8.25%) than the current rate:
1% Decrease
Current
Discount Rate 1% Increase
City:
Total pension liability $108,221,447 $96,560,810 $86,926,452
Plan fiduciary net pension 82,883,531 82,883,531 82,883,531
Net pension liability/(asset)$25,337,916 $13,677,279 $4,042,921
Library:
Total pension liability $14,060,869 $12,545,839 $11,294,077
Plan fiduciary net pension 11,130,265 11,130,265 11,130,265
Net pension liability/(asset)$2,930,604 $1,415,574 $163,812
Total:
Total pension liability $122,282,316 $109,106,649 $98,220,529
Plan fiduciary net pension 94,013,796 94,013,796 94,013,796
Net pension liability/(asset)$28,268,520 $15,092,853 $4,206,733
Changes in net pension liability/(asset). The changes in net pension liability/(asset)for the calendar
year ended December 31, 2018 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, 2017 $90,081,074 $89,012,730 $1,068,344
Service cost 1,162,585 -1,162,585
Interest on total pension liability 6,788,684 -6,788,684
Differences between expected and actual
experience of the total pension liability
819,901 -819,901
Change of assumptions 2,657,676 -2,657,676
Benefit payments, including refunds of
employee contributions
(4,949,110)(4,949,110)-
Contributions - employer -1,535,144 (1,535,144)
Contributions - employee -557,075 (557,075)
Net investment income -(5,144,778)5,144,778
Other (net transfer)-1,872,470 (1,872,470)
Balances at December 31, 2018 $96,560,810 $82,883,531 $13,677,279
Page 70102
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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, 2017 $11,892,140 $11,764,626 $127,514
Service cost 120,326 -120,326
Interest on total pension liability 702,616 -702,616
Differences between expected and actual
experience of the total pension liability
84,858 -84,858
Change of assumptions 258,123 -258,123
Benefit payments, including refunds of
employee contributions
(512,224)(512,224)-
Contributions - employer -158,885 (158,885)
Contributions - employee -57,656 (57,656)
Net investment income -(532,475)532,475
Other (net transfer)-193,797 (193,797)
Balances at December 31, 2018 $12,545,839 $11,130,265 $1,415,574
Total:
Balances at December 31, 2017 $101,973,214 $100,777,356 $1,195,858
Service cost 1,282,911 -1,282,911
Interest on total pension liability 7,491,300 -7,491,300
Differences between expected and actual
experience of the total pension liability
904,759 -904,759
Change of assumptions 2,915,799 -2,915,799
Benefit payments, including refunds of
employee contributions
(5,461,334)(5,461,334)-
Contributions - employer -1,694,029 (1,694,029)
Contributions - employee -614,731 (614,731)
Net investment income -(5,677,253)5,677,253
Other (net transfer)-2,066,267 (2,066,267)
Balances at December 31, 2018 $109,106,649 $94,013,796 $15,092,853
Plan fiduciary net position as a percentage of
the total pension liability %86.17
Page 71103
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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, 2019, the City recognized pension expense of $1,172,120.
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 $594,911 $41,075
Assumption changes 1,809,597 1,160,814
Net difference between projected and actual earnings on pension
plan investments 5,846,060 -
Contributions subsequent to the measurement date 428,178 -
Total $8,678,746 $1,201,889
Library:
Difference between expected and actual experience $61,572 $4,251
Assumption changes 187,290 120,142
Net difference between projected and actual earnings on pension
plan investments 605,057 -
Contributions subsequent to the measurement date 45,963 -
Total $899,882 $124,393
Total:
Difference between expected and actual experience $656,483 $45,326
Assumption changes 1,996,887 1,280,956
Net difference between projected and actual earnings on pension
plan investments 6,451,117 -
Contributions subsequent to the measurement date 474,141 -
Total $9,578,628 $1,326,282
Page 72104
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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, 2020. The remaining amounts reported as deferred outflows and inflows of resources
related to pensions ($7,778,205) will be recognized in pension expense as follows:
Year Ending December 31,City Library Total
2020 $2,274,113 $235,367 $2,509,480
2021 1,522,534 157,580 1,680,114
2022 860,580 89,069 949,649
2023 2,391,452 247,510 2,638,962
Total $7,048,679 $729,526 $7,778,205
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 73105
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Police Pension (cont.)
Plan membership. At April 30, 2019, the Police Pension membership consisted of:
Retirees and beneficiaries 43
Inactive, non-retired members 10
Active members 39
Total 92
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, 2019 was 63.56% of annual covered payroll.
Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of April 30, 2019, 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 74106
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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, 2019 using the following actuarial methods and assumptions:
Actuarial cost method Entry Age Normal
Asset valuation method Market Value
Actuarial assumptions
Interest rate 6.75%
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 PubS-2010 Mortality Table. The actuarial assumptions were based on
the results of an 2017 actuarial experience study conducted by the Illinois Department of Insurance.
Discount rate. The discount rate used to measure the total pension liability for the Police Pension Plan
was 6.75%. The discount rate calculated using the April 30, 2018 measurement date was 7.00%. 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 6.75% 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 (5.75%) or 1 percentage point higher (7.75%) than the
current rate:
1% Decrease
Current
Discount Rate 1% Increase
Total pension liability $75,680,591 $66,252,095 $58,553,629
Plan fiduciary net position 33,350,826 33,350,826 33,350,826
Net pension liability $42,329,765 $32,901,269 $25,202,803
Page 75107
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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, 2019 was as follows:
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/Asset
(a) - (b)
Balances at April 30, 2018 $58,400,246 $31,650,935 $26,749,311
Service cost 900,450 -900,450
Interest on total pension liability 4,051,210 -4,051,210
Differences between expected and actual
experience of the total pension liability 2,043,281 -2,043,281
Change of assumptions 3,709,450 -3,709,450
Benefit payments, including refunds of employee
contributions (2,852,542)(2,852,542)-
Contributions - employer -2,504,581 (2,504,581)
Contributions - employee -392,258 (392,258)
Net investment income -1,716,441 (1,716,441)
Administration -(60,847)60,847
Balances at April 30, 2019 $66,252,095 $33,350,826 $32,901,269
Pension expense and deferred outflows of resources and deferred inflows of resources related
to pensions.For the year ended April 30, 2019, the City recognized pension expense of $3,943,728.
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 $1,757,036 $733,659
Assumption changes 3,467,065 -
Net difference between projected and actual earnings on pension
plan investments 598,403 -
Total $5,822,504 $733,659
Page 76108
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 ($5,088,845)
will be recognized in pension expense as follows:
Year Ending April 30,Amount
2020 $1,538,465
2021 1,055,429
2022 1,244,696
2023 1,250,255
Total $5,088,845
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 77109
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Firefighters' Pension (cont.)
Plan membership. At April 30, 2019, the Firefighters' Pension Plan membership consisted of:
Retirees and beneficiaries 42
Inactive, non-retired members 2
Active members 33
Total 77
Contributions. Participants contribute a fixed percentage of their base salary to the plans. At April 30,
2019, 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, 2019 was 51.50% of
annual covered payroll.
Net pension liability/(asset). The net pension liability/(asset) was measured as of April 30, 2019, 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 78110
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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, 2019 using the following actuarial methods and assumptions:
Actuarial cost method Entry Age
Asset valuation method 5-year average Market Value
Actuarial assumptions
Interest rate 6.75%
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 PubS-2010 Mortality Table. The actuarial assumptions were based on
the results of an 2017 actuarial experience study conducted by the Illinois Department of Insurance.
Discount rate. The discount rate used to measure the total pension liability for the Firefighters' Pension
Plan was 6.75%. The discount rate calculated using the April 30, 2018 measurement date was 7.00%.
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 6.75% 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 (5.75%) or 1 percentage point higher (7.75%) than the
current rate:
1% Decrease
Current
Discount Rate 1% Increase
Total pension liability $64,465,785 $56,470,867 $49,947,875
Plan fiduciary net position 38,685,520 38,685,520 38,685,520
Net pension liability $25,780,265 $17,785,347 $11,262,355
Page 79111
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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, 2019 was as follows:
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/Asset
(a) - (b)
Balances at April 30, 2018 $51,327,313 $36,256,485 $15,070,828
Service cost 891,741 -891,741
Interest on total pension liability 3,564,977 -3,564,977
Differences between expected and actual
experience of the total pension liability 166,664 -166,664
Change of assumptions 3,101,793 -3,101,793
Benefit payments, including refunds of employee
contributions (2,581,621)(2,581,621)-
Contributions - employer -1,719,445 (1,719,445)
Contributions - employee -311,675 (311,675)
Net investment income -3,032,134 (3,032,134)
Administration -(52,598)52,598
Balances at April 30, 2019 $56,470,867 $38,685,520 $17,785,347
Pension expense and deferred outflows of resources and deferred inflows of resources related
to pensions.For the year ended April 30, 2019, the City recognized pension expense of $2,546,828.
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 $370,274 $62,158
Assumption changes 3,285,379 -
Net difference between projected and actual earnings on pension
plan investments -639,849
Total $3,655,653 $702,007
Page 80112
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 ($2,953,646)
will be recognized in pension expense as follows:
Year Ending April 30,Amount
2020 $866,033
2021 435,700
2022 636,104
2023 471,066
2024 544,743
Total $2,953,646
PENSION SEGMENT INFORMATION
Fiduciary Net Position
Pension Trust
Police
Pension
Firefighters'
Pension Total
Assets
Cash $63,243 $558,066 $621,309
Money markets 360,405 -360,405
Investments
U.S. treasury obligations 10,242,088 4,071,113 14,313,201
U.S. government agencies 229,326 3,547,683 3,777,009
Municipal/corporate bonds 957,459 6,121,387 7,078,846
Mutual funds 17,719,414 24,249,491 41,968,905
Real estate investment fund 3,662,142 -3,662,142
Prepaids 4,030 4,442 8,472
Interest receivable 70,121 112,982 183,103
Due from primary government 46,214 25,938 72,152
Total Assets 33,354,442 38,691,102 72,045,544
Liabilities
Accounts payable 3,616 5,582 9,198
Total Liabilities 3,616 5,582 9,198
Net Position
Restricted for pensions $33,350,826 $38,685,520 $72,036,346
Page 81113
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 $2,504,581 $1,719,445 $4,224,026
Employee 392,258 311,675 703,933
Total Contributions 2,896,839 2,031,120 4,927,959
Investment Income
Interest 573,427 776,750 1,350,177
Net appreciation in fair value of investments 1,225,046 2,319,038 3,544,084
Total Investment income 1,798,473 3,095,788 4,894,261
Less investment expense 82,032 63,654 145,686
Net investment income 1,716,441 3,032,134 4,748,575
Total Additions 4,613,280 5,063,254 9,676,534
Deductions
Pension benefits and refunds 2,852,542 2,581,621 5,434,163
Other administrative expenses 60,847 52,598 113,445
Total Deductions 2,913,389 2,634,219 5,547,608
Change in net position 1,699,891 2,429,035 4,128,926
Net position, beginning of year 31,650,935 36,256,485 67,907,420
Net position, end of year $33,350,826 $38,685,520 $72,036,346
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 82114
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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
2017-2018 $138,033 $139,722 $183,202 $94,553
2018-2019 94,553 377,343 258,501 213,395
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 83115
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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
2017-2018 $741,503 $4,326,092 $4,472,225 $595,370
2018-2019 595,370 4,608,923 4,636,187 568,106
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 W aste 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 the Agency.
To obtain the Agency's financial statements, contract the Solid W aste Agency of Lake County, Illinois, at
1311 N. Estes Street, Gurnee, Illinois 60031.
Page 84116
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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 $218,057 at April 30, 2019. W ork
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
GENERAL INFORMATION ABOUT THE OPEB PLAN
Plan description. The City's defined benefit OPEB plan, "City Plan", and the Library's defined benefit
OPEB plan, "Library Plan", provide insurance coverage for eligible retirees and their dependents through
the City's and Library's group health insurance plans, which covers both active employees and retired
members participating in the plan at blended rates.
The City and Library Plans are funded on a pay-as-you-go basis and no assets are accumulated in a trust
that meets the criteria in paragraph 4 of Statement 75.
Page 85117
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE IV - OTHER INFORMATION (cont.)
E.OTHER POSTEMPLOYMENT BENEFITS (cont.)
Benefits provided.The City Plan provides healthcare and dental coverage for retirees and their
dependents. Non-PSEBA employees before the age of 65 may remain on the City's insurance plan
and pay the full cost of coverage. Dependent coverage may continue under COBRA should the
Retiree coverage terminate. For PSEBA employees, the City will pay the full cost of coverage prior
to the age of 65. Eligible dependent coverage may continue with the City paying full cost of
coverage should Retiree coverage terminate due to death until the dependent reaches Medicare
eligibility, or in the case of an underage dependent, until the maximum age of 26 is reached. Once
a retiree turns 65, they may elect a separate policy that is not administered by the City.
The Library Plan provides healthcare and dental coverage for retirees and their dependents. Employees
before the age of 65 may remain on the Library’s insurance plan and pay the full cost of coverage.
Dependent coverage may continue under COBRA should the Retiree coverage terminate. Once a retiree
turns 65, they may elect a separate policy that is not administered by the Library.
Employees covered by benefit terms. At April 30, 2019, the following employees were covered by the
benefit terms:
City Library
Inactive plan members or beneficiaries currently receiving benefit
payments 41 4
Active plan members 200 22
241 26
TOTAL OPEB LIABILITY
The City's total OPEB liability of $2,437,511 was measured as of April 30, 2019, and was determined by
an actuarial valuation as of that date. The Library's total OPEB liability of $204,565 was measured as of
April 30, 2019, and was determined by an actuarial valuation as of that date.
Actuarial assumptions and other inputs. For both the City and Library, the total OPEB liability in the
April 30, 2019 actuarial valuation was determined using the following actuarial assumptions and other
inputs, applied to all periods included in the measurement, unless otherwise specified:
Inflation 2.50%
Salary increases 3.00%
Healthcare cost trend rates 7.00% - 5.00% for Medical, 4.00% for dental
Retirees' share of benefit-related costs 100%
The discount rate was based on Bond Buyer 20-Bond G.O. Index.
Page 86118
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE IV - OTHER INFORMATION (cont.)
E.OTHER POSTEMPLOYMENT BENEFITS (cont.)
Mortality rates were based on the RP-2014 Healthy Annuitant Mortality Table for Males or Females, as
appropriate, with adjustments for mortality improvements based on the MP-2016 or MP-2017
improvements rates, depending on type of employee or retiree.
The actuarial assumptions used in the April 30, 2019 valuation were based on the results of an actuarial
experience study for the period May 1, 2018 - April 30, 2019.
CHANGES IN THE TOTAL OPEB LIABILITY
City - Total
OPEB Liability
Library - Total
OPEB Liability
Balances at April 30, 2018 $2,423,911 $210,250
Changes for the year:
Service cost 46,323 1,620
Interest 93,093 8,019
Changes in assumptions or other inputs 32,177 1,221
Benefit payments (157,993)(16,545)
Net changes 13,600 (5,685)
Balances at April 30, 2019 $2,437,511 $204,565
Changes of assumptions and other inputs reflect a change in the discount rate from 3.97 percent in 2018
to 3.79 percent in 2019 for both the City and the Library.
Sensitivity of the total OPEB liability to changes in the discount rate.The following presents the total
OPEB liability of the City and the Library, as well as what the total OPEB liability would be for each if it
were calculated using a discount rate that is 1-percentage-point lower (2.79 percent) or 1-percentage-
point higher (4.79 percent) than the current discount rate:
1% Decrease Discount Rate 1% Increase
(2.79%)(3.79%)(4.79%)
Total OPEB liability - City $2,628,276 $2,437,511 $2,266,573
Total OPEB liability - Library $211,533 $204,565 $197,904
Page 87119
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE IV - OTHER INFORMATION (cont.)
E.OTHER POSTEMPLOYMENT BENEFITS (cont.)
Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates.The following
presents the total OPEB liability of the City and the Library, as well as what the City's and Library's total
OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point
lower ( 6.0 percent decreasing to 4.0 percent) or 1-percentage-point higher (8.0 percent decreasing to 6.0
percent) than the current healthcare cost trend rates:
1% Decrease
(6.0%
Decreasing to
4.0%)
Healthcare Cost
Trend Rates
(7.0%
Decreasing to
5.0%)
1% Increase
(8.0%
Decreasing to
6.0%)
Total OPEB liability - City $2,218,667 $2,437,511 $2,690,423
Total OPEB liability - Library $195,398 $204,565 $214,218
OPEB EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES
RELATED TO OPEB
For the year ended April 30, 2019, the City recognized negative OPEB expense of $142,313. At April 30,
2019, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB
from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of assumptions or other inputs $29,280 $-
Total $29,280 $-
For the year ended April 30, 2019, the Library recognized negative OPEB expense of $9,767. At April 30,
2019, the Library reported deferred outflows of resources and deferred inflows of resources related to
OPEB from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of assumptions or other inputs $1,093 $-
Total $1,093 $-
Page 88120
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
NOTE IV - OTHER INFORMATION (cont.)
E.OTHER POSTEMPLOYMENT BENEFITS (cont.)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB
will be recognized in OPEB expense as follows:
Year Ended April 30:City Library
2020 $2,897 $128
2021 2,897 128
2022 2,897 128
2023 2,897 128
2024 2,897 128
Thereafter 14,795 453
Total $29,280 $1,093
F.LAUREL AND WESTERN TAX INCREMENT FINANCING (TIF) DISTRICT
The City approved the Laurel and W estern 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
developm ent 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
environm ental 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, 2019, the City received $88,182 in TIF increment property tax
revenue. 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, 2019.
A redevelopm ent agreement between the City and developer was also executed in September 2016. As
of April 30, 2019, 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). As of April 30 2019, construction of the
three apartment buildings is complete with 84 percent of 110 apartments leased. The first of two
condominiums is complete with twelve (12) condominiums sold and three (3) single family homes have
been sold and three are under contract and under construction. The development plan calls for a mix of
housing consisting of 12 single family homes, 42 condominium units and 111 apartments.
Page 89121
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2019
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. 83, Certain Asset Retirement Obligations
Statement No. 84, Fiduciary Activities
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
Statement No. 91, Conduit Debt Obligations
When they become effective, application of these standards may restate portions of these financial
statements.
Page 90122
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
123
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND
For the Year Ended April 30, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Taxes
Property $19,268,005 $19,268,005 $19,235,378 $(32,627)
Other taxes 3,103,600 3,103,600 3,231,992 128,392
Intergovernmental 5,668,806 5,668,806 6,172,591 503,785
Licenses and permits 2,369,367 2,369,367 3,456,703 1,087,336
Fines, forfeitures and penalties 227,000 227,000 355,304 128,304
Charges for services 3,085,549 3,085,549 3,354,997 269,448
Grants and contributions --27,560 27,560
Investment income 390,895 390,895 859,448 468,553
Miscellaneous revenues 1,265,482 1,265,482 1,349,720 84,238
Total Revenues 35,378,704 35,378,704 38,043,693 2,664,989
EXPENDITURES
Current
General government 10,709,330 10,858,640 9,904,969 953,671
Highways and streets 2,486,528 2,545,395 2,472,144 73,251
Sanitation 2,441,970 2,441,970 2,480,420 (38,450)
Public safety 16,780,769 16,879,271 16,478,486 400,785
Contingency 3,519,022 3,519,022 -3,519,022
Total Expenditures 35,937,619 36,244,298 31,336,019 4,908,279
Excess (deficiency) of revenues over
(under) expenditures (558,915)(865,594)6,707,674 7,573,268
OTHER FINANCING SOURCES
(USES)
Transfers out (2,557,821)(2,464,944)(7,043,372)(4,578,428)
Total Other Financing Sources
(Uses)(2,557,821)(2,464,944)(7,043,372)(4,578,428)
Net Change in Fund Balance $(3,116,736)$(3,330,538)(335,698)$2,994,840
FUND BALANCE - Beginning of Year 29,280,882
FUND BALANCE - END OF YEAR $28,945,184
See independent auditors' report and accompanying notes to required supplementary information.
Page 91124
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, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Property taxes $5,674,057 $5,674,057 $5,665,011 $(9,046)
Intergovernmental 40,000 40,000 40,787 787
Charges for services 3,155,913 3,155,913 2,796,791 (359,122)
Grants and contributions 159,500 159,500 218,928 59,428
Investment income 35,834 35,834 99,238 63,404
Miscellaneous revenues 29,050 29,050 26,017 (3,033)
Total Revenues 9,094,354 9,094,354 8,846,772 (247,582)
EXPENDITURES
Current
Culture and recreation 8,903,847 8,953,981 8,628,206 325,775
Capital Outlay 312,971 408,738 173,564 235,174
Contingency 968,772 968,772 -968,772
Total Expenditures 10,185,590 10,331,491 8,801,770 1,529,721
Excess (deficiency) of revenues over
(under) expenditures (1,091,236)(1,237,137)45,002 1,282,139
OTHER FINANCING SOURCES
(USES)
Transfers in 305,000 305,000 308,500 3,500
Transfers out (175,000)(175,000)(362,000)(187,000)
Total Other Financing Sources
(Uses)130,000 130,000 (53,500)(183,500)
Net Change in Fund Balance $(961,236)$(1,107,137)(8,498)$1,098,639
FUND BALANCE - Beginning of Year 2,031,479
FUND BALANCE - END OF YEAR $2,022,981
See independent auditors' report and accompanying notes to required supplementary information.
Page 92125
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CITY OF LAKE FOREST
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY
AND RELATED RATIOS
For the past four fiscal years
City Library Total
Total pension liability
Service cost 1,549,831$ 208,143$ 1,757,974$
Interest on total pension liability 7,086,670 951,742 8,038,412
Differences between expected and
actual experience 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
contributions (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 payroll 13,391,112$
Employer's net pension liability as a percentage
of covered 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.
126
See independent auditors' report and accompanying notes to required supplementary information Page 94
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
127
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CITY OF LAKE FOREST
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY
AND RELATED RATIOS
For the past four fiscal years
City Library Total
Total pension liability
Service cost 1,162,585$ 120,326$ 1,282,911$
Interest on total pension liability 6,788,684 702,616 7,491,300
Differences between expected and
actual experience of the total pension liability 819,901 84,858 904,759
Changes of assumptions 2,657,676 258,123 2,915,799
Transfer of liability - - -
Benefit payments, including refunds of member
contributions (4,949,110) (512,224) (5,461,334)
Net change in total pension liability 6,479,736 653,699 7,133,435
Total pension liability - beginning 90,081,074 11,892,140 101,973,214
Total pension liability - ending (a)96,560,810$ 12,545,839$ 109,106,649$
Plan fiduciary net position
Employer contributions 1,535,144$ 158,885$ 1,694,029$
Employee contributions 557,075 57,656 614,731
Net investment income (5,144,778) (532,475) (5,677,253)
Benefit payments, including refunds of member
contributions (4,949,110) (512,224) (5,461,334)
Other (net transfer)1,872,470 193,797 2,066,267
Net change in plan fiduciary net position (6,129,199) (634,361) (6,763,560)
Plan fiduciary net position - beginning 89,012,730 11,764,626 100,777,356
Plan fiduciary net position - ending (b)82,883,531$ 11,130,265$ 94,013,796$
Employer's net pension liability - ending (a) - (b)13,677,279$ 1,415,574$ 15,092,853$
Plan fiduciary net position as a percentage of
the total pension liability 86.17%
Covered payroll 13,522,211$
Employer's net pension liability as a percentage
of covered payroll 111.62%
Notes to Schedule:
2019
The City implemented GASB Statement No. 68 in fiscal year 2016. Information prior to fiscal year 2016 is not
available.
128
See independent auditors' report and accompanying notes to required supplementary information Page 96
CITY OF LAKE FOREST
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
For the past four 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 payroll 13,391,112$
Contributions as a percentage of covered
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 2.75%
Salary increases
Investment rate of return 7.50%
Retirement Age
Mortality RP-2014 Mortality Table
Other information:
There were no benefit changes during the year.
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
25 years
5-Year Smoothed Market
2016
3.75% to 14.50% including inflation
129
See independent auditors' report and accompanying notes to required supplementary information Page 97
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
130
See independent auditors' report and accompanying notes to required supplementary information Page 98
CITY OF LAKE FOREST
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
For the past four fiscal years
City Library Total
Actuarially determined contribution 1,514,588$ 156,757$ 1,671,345$
Contributions in relation to the actuarially
determined contribution (1,535,144) (158,885) (1,694,029)
Contribution deficiency (excess)(20,556)$ (2,128)$ (22,684)$
Covered payroll 14,446,880$
Contributions as a percentage of covered
payroll 11.73%
2019
131
See independent auditors' report and notes to required supplementary information. Page 99
2015 2016 2017 2018 2019
Total pension liability
Service cost 845,979$ 883,178$ 931,083$ 895,320$ 900,450$
Interest on total pension liability 3,219,893 3,657,765 3,660,514 3,908,626 4,051,210
Differences between expected and
actual experience of the total pension liability 2,713 (2,129,040) 306,030 (39,964) 2,043,281
Changes of assumptions 3,568,719 - 1,248,764 - 3,709,450
Benefit payments, including refunds of member contributions (2,193,705) (2,320,588) (2,520,473) (2,611,864) (2,852,542)
Other (16,057) - - - -
Net change in total pension liability 5,427,542 91,315 3,625,918 2,152,118 7,851,849
Total pension liability - beginning 47,103,353 52,530,895 52,622,210 56,248,128 58,400,246
Total pension liability - ending (a)52,530,895$ 52,622,210$ 56,248,128$ 58,400,246$ 66,252,095$
Plan fiduciary net position
Employer contributions 1,706,203$ 1,806,270$ 1,895,500$ 2,094,124$ 2,504,581$
Employee contributions 360,156 373,216 371,695 379,500 392,258
Net investment income 1,669,508 (475,655) 2,635,379 2,064,885 1,716,441
Benefit payments, including refunds of member contributions (2,193,705) (2,320,588) (2,520,473) (2,611,864) (2,852,542)
Administrative expenses (4,150) (4,835) (27,816) (34,158) (60,847)
Net change in plan fiduciary net position 1,538,012 (621,592) 2,354,285 1,892,487 1,699,891
Plan fiduciary net position - beginning 26,487,743 28,025,755 27,404,163 29,758,448 31,650,935
Plan fiduciary net position - ending (b)28,025,755$ 27,404,163$ 29,758,448$ 31,650,935$ 33,350,826$
City's net pension liability - ending (a) - (b)24,505,140$ 25,218,047$ 26,489,680$ 26,749,311$ 32,901,269$
Plan fiduciary net position as a percentage of the total
pension liability 53.35%52.08%52.91%54.20%50.34%
Covered payroll 3,590,934$ 3,759,611$ 3,750,706$ 3,800,841$ 3,940,419$
City's net pension liability as a percentage of covered
payroll 682.42%670.76%706.26%703.77%834.97%
Notes to Schedule:
-Updated the percentage of deaths assumed to be in the line of duty from 5% to 10%
-The interest rate was updated from 7.00% to 6.75%
The Pension implemented GASB Statement No. 67 in fiscal year 2015. Information prior to fiscal year 2015 is not available.
-Updated the percentage of disabilities assumed to be in the line of duty from 70% to 60%
-The healthy mortality table was updated from the RP-2000 Combined Healthy table with a blue collar adjustment to the
-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
For measurement date April 30, 2018, amounts reported as changes of assumptions resulted from the following
-Updated retirement, termination and disability rate tables. The mortality rates were updated to reflect the PubS-2010
-The salary increase assumption was changed to better reflect our expectation of plan experience.
CITY OF LAKE FOREST
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, 2019, amounts reported as changes of assumptions resulted from the following
Last Five Fiscal Years
SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY AND RELATED RATIOS
POLICE PENSION FUND
132
See independent auditors' report and notes to required supplementary information.Page 100
CITY OF LAKE FOREST
POLICE PENSION FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Last Ten Fiscal Years
2010 2011 2012 2013
Actuarially determined contribution 1,128,050$ 1,405,652$ 1,372,431$ 1,375,906$
Contributions in relation to the actuarially
determined contribution 1,128,592 1,412,730 1,515,074 1,502,075
Contribution deficiency (excess)(542)$ (7,078)$ (142,643)$ (126,169)$
Covered payroll 3,283,760$ 3,322,493$ 3,359,679$ 3,170,518$
Contributions as a percentage of covered
payroll 34.37%42.52%45.10%47.38%
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 PubS-2010 Mortality
Table
Entry-age normal
Level percentage of payroll, closed
26 years (as of 5/1/2015 valuation); 23 years (as of
5/1/2016 valuation); 22 years (as of 5/1/2019 valuation)
Investment gains and losses are smoothed over a 5-
year period
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.
133
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2014 2015 2016 2017 2018 2019
1,384,307$ 1,508,450$ 1,810,315$ 1,737,445$ 1,832,059$ 2,505,888$
1,563,964 1,706,203 1,806,270 1,895,500 2,094,124 2,504,581
(179,657)$ (197,753)$ 4,045$ (158,055)$ (262,065)$ 1,307$
3,518,797$ 3,590,934$ 3,759,611$ 3,750,706$ 3,800,841$ 3,940,419$
44.45%47.51%48.04%50.54%55.10%63.56%
134
See independent auditors' report and notes to required supplementary information.Page 102
2015 2016 2017 2018 2019
Annual money-weighted rate of return,
net of investment expense 6.79%-1.44%9.67%7.03%5.48%
Notes to Schedule:
The Pension implemented GASB Statement No. 67 in fiscal year 2015. Information prior to fiscal year 2015 is not
available.
SCHEDULE OF INVESTMENT RETURNS
Last Five Fiscal Years
POLICE PENSION FUND
CITY OF LAKE FOREST
135
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CITY OF LAKE FOREST
FIREFIGHTERS' PENSION FUND
SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY AND RELATED RATIOS
Last Five Fiscal Years
2015 2016 2017 2018 2019
Total pension liability
Service cost 912,154$ 926,420$ 860,148$ 854,245$ 891,741$
Interest on total pension liability 2,754,242 3,072,945 3,190,325 3,425,477 3,564,977
Differences between expected and actual experience
actual experience of the total pension liability (213,530) (186,474) 227,730 176,286 166,664
Changes of assumptions 2,024,054 - 1,401,097 - 3,101,793
Benefit payments, including refunds of member contributions (1,769,849) (1,931,047) (2,208,471) (2,419,682) (2,581,621)
Net change in total pension liability 3,707,071 1,881,844 3,470,829 2,036,326 5,143,554
Total pension liability - beginning 40,231,243 43,938,314 45,820,158 49,290,987 51,327,313
Total pension liability - ending (a)43,938,314$ 45,820,158$ 49,290,987$ 51,327,313$ 56,470,867$
Plan fiduciary net position
Employer contributions 1,168,287$ 1,216,585$ 1,211,587$ 1,308,348$ 1,719,445$
Employee contributions 296,676 297,946 290,383 296,202 311,675
Net investment income 1,871,817 60,335 3,053,497 2,897,100 3,032,134
Miscellaneous revenue - 100 - - -
Benefit payments, including refunds of member contributions (1,769,849) (1,931,047) (2,208,471) (2,419,682) (2,581,621)
Administrative expenses (4,150) (4,835) (34,006) (35,547) (52,598)
Net change in plan fiduciary net position 1,562,781 (360,916) 2,312,990 2,046,421 2,429,035
Plan fiduciary net position - beginning 30,695,209 32,257,990 31,897,074 34,210,064 36,256,485
Plan fiduciary net position - ending (b)32,257,990$ 31,897,074$ 34,210,064$ 36,256,485$ 38,685,520$
City's net pension liability - ending (a) - (b)11,680,324$ 13,923,084$ 15,080,923$ 15,070,828$ 17,785,347$
Plan fiduciary net position as a percentage of the total
pension liability 73.42%69.61%69.40%70.64%68.51%
Covered payroll 3,111,216$ 2,924,893$ 3,071,211$ 3,237,410$ 3,338,448$
City's net pension liability as a percentage of covered
payroll 375.43%476.02%491.04%465.52%532.74%
Notes to Schedule:
-Updated the percentage of deaths assumed to be in the line of duty from 5% to 20%
-The interest rate was updated from 7.00% to 6.75%
The Pension implemented GASB Statement No. 67 in fiscal year 2015. Information prior to fiscal year 2015 is not available.
-Updated the percentage of disabilities assumed to be in the line of duty from 90% to 80%
-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:
For measurement date April 30, 2019, amounts reported as changes of assumptions resulted from the following changes:
-Updated retirement, termination and disability rate tables. The mortality rates were updated to reflect the PubS-2010
-The salary increase assumption was changed to better reflect our expectation of plan experience.
136
See independent auditors' report and notes to required supplementary information.Page 104
CITY OF LAKE FOREST
FIREFIGHTERS' PENSION FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Last Ten Fiscal Years
2010 2011 2012 2013
Actuarially determined contribution 761,978$ 954,946$ 862,452$ 894,551$
Contributions in relation to the actuarially
determined contribution 810,129 960,850 983,298 1,026,345
Contribution deficiency (excess)(48,151)$ (5,904)$ (120,846)$ (131,794)$
Covered payroll 2,926,591$ 2,644,320$ 2,941,767$ 3,049,732$
Contributions as a percentage of covered
payroll 27.68%36.34%33.43%33.65%
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 PubS-2010
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), 23 years (as of the 05/01/2016
valuation), and 22 years (as of the 05/01/2019 valuation)
137
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2014 2015 2016 2017 2018 2019
894,384$ 950,325$ 1,217,702$ 1,137,826$ 1,298,188$ 1,721,953$
1,090,695 1,168,287 1,216,585 1,211,587 1,308,348 1,719,445
(196,311)$ (217,962)$ 1,117$ (73,761)$ (10,160)$ 2,508$
3,004,889$ 3,111,216$ 2,924,893$ 3,071,211$ 3,237,410$ 3,388,448$
36.30%37.55%41.59%39.45%40.41%50.74%
138
See independent auditors' report and notes to required supplementary information.Page 106
CITY OF LAKE FOREST
FIREFIGHTERS' PENSION FUND
SCHEDULE OF INVESTMENT RETURNS
Last Five Fiscal Years
2015 2016 2017 2018 2019
Annual money-weighted rate of return,
net of investment expense 6.48%0.26%9.66%8.65%8.56%
Notes to Schedule:
The Pension implemented GASB Statement No. 67 in fiscal year 2015. Information prior to fiscal year 2015 is not
available.
139
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Page 107
City Library
Total OPEB liability
Service cost 46,323$ 1,620$
Interest 93,093 8,019
Changes of assumptions 32,177 1,221
Benefit payments, including refunds of member contributions (157,993) (16,545)
Net change in total OPEB liability 13,600 (5,685)
Total OPEB liability - beginning 2,423,911 210,250
Total OPEB liability - ending 2,437,511$ 204,565$
Plan fiduciary net position as a percentage of the total OPEB
liability 0.00%0.00%
Covered payroll 20,233,763$ 1,467,746$
City's total OPEB liability as a percentage of covered payroll 12.05%13.94%
Notes to Schedule:
The City implemented GASB Statement No. 75 in fiscal year 2018. Information prior to fiscal year 2019
is not available.
2019
CITY OF LAKE FOREST
OTHER POSTEMPLOYMENT BENEFITS PLAN
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY
AND RELATED RATIOS
Most Recent Fiscal Year
140
CITY OF LAKE FOREST
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended April 30, 2019
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 108141
S U P P L E M E N T A R Y I N F O R M A T I O N
142
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 sys tem. 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 Fund
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.
143
CITY OF LAKE FOREST
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
As of April 30, 2019
Special Revenue Funds
Police Restricted
Foreign Fire
Insurance Tax
Emergency
Telephone
Parks and Public
Land Motor Fuel Tax
ASSETS
Cash and cash equivalents $176,349 $9,074 $(204,337)$1,148,929 $974,793
Investments -188,541 ---
Receivables (net)
Property taxes -----
Other 1,294 -679,433 -1,344
Due from other governments ----42,886
Advances to other funds -----
Due from fiduciary funds -----
Prepaid items --28,689 --
TOTAL ASSETS $177,643 $197,615 $503,785 $1,148,929 $1,019,023
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND
BALANCES
Liabilities
Accounts payable $111,193 $-$104,311 $-$-
Accrued liabilities -----
Deposits -----
Unearned revenues -----
Due to other funds -----
Total Liabilities 111,193 -104,311 --
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 --28,689 --
Restricted for culture and
recreation ---1,148,929 -
Restricted for highways and
streets ----1,017,679
Restricted for public safety 66,450 197,615 370,785 --
Restricted for cemetery
perpetual care -----
Restricted for affordable
housing -----
Restricted for debt service
purposes -----
Unassigned -----
Total Fund Balances 66,450 197,615 399,474 1,148,929 1,017,679
TOTAL LIABILITIES,
DEFERRED
INFLOWS OF
RESOURCES,
AN D FUND
BALANCES $177,643 $197,615 $503,785 $1,148,929 $1,019,023
Page 109144
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
$1,331,875 $166,932 $1,357,808 $1,639,633 $-$6,601,056
6,391,165 ----6,579,706
---1,884,033 -1,884,033
32,800 23,965 ---738,836
-----42,886
----380,000 380,000
126,463 ----126,463
-4,148 ---32,837
$7,882,303 $195,045 $1,357,808 $3,523,666 $380,000 $16,385,817
$100,941 $7,781 $-$-$-$324,226
14,267 12,864 ---27,131
--18,000 --18,000
-12,355 ---12,355
----383,686 383,686
115,208 33,000 18,000 -383,686 765,398
---1,884,033 -1,884,033
-----1,344
---1,884,033 -1,885,377
-4,148 ---32,837
-157,897 ---1,306,826
-----1,017,679
-----634,850
7,767,095 ----7,767,095
--1,339,808 --1,339,808
---1,639,633 -1,639,633
----(3,686)(3,686)
7,767,095 162,045 1,339,808 1,639,633 (3,686)13,735,042
$7,882,303 $195,045 $1,357,808 $3,523,666 $380,000 $16,385,817
Page 110145
CITY OF LAKE FOREST
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended April 30, 2019
Special Revenue Funds
Police
Restricted
Foreign Fire
Insurance Tax
Emergency
Telephone
Parks and
Public Land Motor Fuel Tax
REVENUES
Taxes:
Property $-$-$-$-$-
Other -----
Intergovernmental 12,589 ---491,827
Charges for services 32,050 71,739 426,106 157,018 -
Grants and contributions -----
Investment income 3,837 3,465 6,561 27,826 17,565
Miscellaneous revenues -----
Total Revenues 48,476 75,204 432,667 184,844 509,392
EXPENDITURES
Current
General government -----
Highways and streets ----4,998
Culture and recreation ---3,747 -
Public safety 112,648 59,039 250,175 --
Capital Outlay --114,804 --
Debt Service
Principal retirement -----
Interest and fiscal charges -----
Total Expenditures 112,648 59,039 364,979 3,747 4,998
Excess (deficiency) of revenues
over expenditures (64,172)16,165 67,688 181,097 504,394
OTHER FINANCING SOURCES
(USES)
Transfers in -----
Transfers out -----
Total Other Financing
Sources (Uses)-----
Net Change in Fund
Balances (64,172)16,165 67,688 181,097 504,394
FUND BALANCES - Beginning of
Year 130,622 181,450 331,786 967,832 513,285
FUND BALANCES
(DEFICIT) - END OF
YEAR $66,450 $197,615 $399,474 $1,148,929 $1,017,679
Page 111146
Special Revenue Funds
Debt Service
Funds
Capital Projects
Fund
General
Cemetery
Senior
Resources
Commission Housing Trust
Debt Service
Improvements
Laurel/W estern
Redevelopment
TIF
Improvements
Total Nonmajor
Governmental
Funds
$-$-$-$1,778,617 $88,182 $1,866,799
--36,000 --36,000
-----504,416
980,842 137,969 ---1,805,724
10,360 195,773 -150,003 -356,136
760,849 4,234 35,886 51,221 721 912,165
720 40 ---760
1,752,771 338,016 71,886 1,979,841 88,903 5,482,000
730,482 -150,000 3,500 6,273 890,255
-----4,998
-588,094 ---591,841
-----421,862
200,936 ---530,924 846,664
---1,429,625 -1,429,625
---1,242,498 -1,242,498
931,418 588,094 150,000 2,675,623 537,197 5,427,743
821,353 (250,078)(78,114)(695,782)(448,294)54,257
-240,529 -813,528 -1,054,057
----(239,313)(239,313)
-240,529 -813,528 (239,313)814,744
821,353 (9,549)(78,114)117,746 (687,607)869,001
6,945,742 171,594 1,417,922 1,521,887 683,921 12,866,041
$7,767,095 $162,045 $1,339,808 $1,639,633 $(3,686)$13,735,042
Page 112147
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, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $9,500 $9,500 $12,589 $3,089
Charges for services 24,100 24,100 32,050 7,950
Investment income 1,900 1,900 3,837 1,937
Total Revenues 35,500 35,500 48,476 12,976
EXPENDITURES
Current
Public safety 126,000 126,000 112,648 13,352
Contingency 12,600 12,600 -12,600
Total Expenditures 138,600 138,600 112,648 25,952
Net Change in Fund Balance $(103,100)$(103,100)(64,172)$38,928
FUND BALANCE - Beginning of Year 130,622
FUND BALANCE - END OF YEAR $66,450
Page 113148
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, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Charges for services $100,000 $100,000 $71,739 $(28,261)
Investment income --3,465 3,465
Total Revenues 100,000 100,000 75,204 (24,796)
EXPENDITURES
Current
Public safety 200,000 200,000 59,039 140,961
Total Expenditures 200,000 200,000 59,039 140,961
Net Change in Fund Balance $(100,000)$(100,000)16,165 $116,165
FUND BALANCE - Beginning of Year 181,450
FUND BALANCE - END OF YEAR $197,615
Page 114149
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, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Charges for services $246,000 $246,000 $426,106 $180,106
Investment income 2,000 2,000 6,561 4,561
Total Revenues 248,000 248,000 432,667 184,667
EXPENDITURES
Current
Public safety 254,800 254,800 250,175 4,625
Capital Outlay 114,804 114,804 114,804 -
Contingency 36,960 36,960 -36,960
Total Expenditures 406,564 406,564 364,979 41,585
Net Change in Fund Balance $(158,564)$(158,564)67,688 $226,252
FUND BALANCE - Beginning of Year 331,786
FUND BALANCE - END OF YEAR $399,474
Page 115150
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, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Charges for services $125,344 $125,344 $157,018 $31,674
Investment income 14,602 14,602 27,826 13,224
Total Revenues 139,946 139,946 184,844 44,898
EXPENDITURES
Current
Culture and recreation 400,000 445,145 3,747 441,398
Contingency 44,515 44,515 -44,515
Total Expenditures 444,515 489,660 3,747 485,913
Net Change in Fund Balance $(304,569)$(349,714)181,097 $530,811
FUND BALANCE - Beginning of Year 967,832
FUND BALANCE - END OF YEAR $1,148,929
Page 116151
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, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $511,589 $511,589 $491,827 $(19,762)
Investment income 7,560 7,560 17,565 10,005
Total Revenues 519,149 519,149 509,392 (9,757)
EXPENDITURES
Current
Highways and streets -5,029 4,998 31
Capital Outlay -32,533 -32,533
Contingency 3,756 3,756 -3,756
Total Expenditures 3,756 41,318 4,998 36,320
Net Change in Fund Balance $515,393 $477,831 504,394 $26,563
FUND BALANCE - Beginning of Year 513,285
FUND BALANCE - END OF YEAR $1,017,679
Page 117152
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, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Grants and contributions $12,000 $12,000 $10,360 $(1,640)
Charges for services 661,350 661,350 980,842 319,492
Investment income 50,000 50,000 760,849 710,849
Miscellaneous revenues --720 720
Total Revenues 723,350 723,350 1,752,771 1,029,421
EXPENDITURES
Current
General government 632,968 639,633 730,482 (90,849)
Capital Outlay 170,000 333,545 200,936 132,609
Contingency 97,318 97,318 -97,318
Total Expenditures 900,286 1,070,496 931,418 139,078
Net Change in Fund Balance $(176,936)$(347,146)821,353 $1,168,499
FUND BALANCE - Beginning of Year 6,945,742
FUND BALANCE - END OF YEAR $7,767,095
Page 118153
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, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Grants and contributions $195,000 $195,000 $195,773 $773
Charges for services 178,150 178,150 137,969 (40,181)
Investment income 3,000 3,000 4,234 1,234
Miscellaneous revenues --40 40
Total Revenues 376,150 376,150 338,016 (38,134)
EXPENDITURES
Current
Culture and recreation 625,970 633,315 588,094 45,221
Contingency 63,332 63,332 -63,332
Total Expenditures 689,302 696,647 588,094 108,553
Excess (deficiency) of revenues over
(under) expenditures (313,152)(320,497)(250,078)70,419
OTHER FINANCING SOURCES
Transfers in 250,529 250,529 240,529 (10,000)
Total Other Financing Sources 250,529 250,529 240,529 (10,000)
Net Change in Fund Balance $(62,623)$(69,968)(9,549)$60,419
FUND BALANCE - Beginning of Year 171,594
FUND BALANCE - END OF YEAR $162,045
Page 119154
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, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Other taxes $48,000 $48,000 $36,000 $(12,000)
Investment income 14,000 14,000 35,886 21,886
Total Revenues 62,000 62,000 71,886 9,886
EXPENDITURES
Current
General government 167,500 335,000 150,000 185,000
Contingency 33,500 33,500 -33,500
Total Expenditures 201,000 368,500 150,000 218,500
Net Change in Fund Balance $(139,000)$(306,500)(78,114)$228,386
FUND BALANCE - Beginning of Year 1,417,922
FUND BALANCE - END OF YEAR $1,339,808
Page 120155
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, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Taxes
Property $1,764,191 $1,764,191 $1,778,617 $14,426
Grants and contributions 149,256 149,256 150,003 747
Investment income 22,681 22,681 51,221 28,540
Total Revenues 1,936,128 1,936,128 1,979,841 43,713
EXPENDITURES
Current
General government 3,750 3,750 3,500 250
Debt service
Principal retirement 1,429,625 1,429,625 1,429,625 -
Interest and fiscal charges 1,242,498 1,242,498 1,242,498 -
Total Expenditures 2,675,873 2,675,873 2,675,623 250
Excess (deficiency) of revenues over
(under) expenditures (739,745)(739,745)(695,782)43,963
OTHER FINANCING SOURCES
(USES)
Transfers in 839,313 839,313 813,528 (25,785)
Total Other Financing Sources
(Uses)839,313 839,313 813,528 (25,785)
Net Change in Fund Balance $99,568 $99,568 117,746 $18,178
FUND BALANCE - Beginning of Year 1,521,887
FUND BALANCE - END OF YEAR $1,639,633
Page 121156
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - LAUREL/W ESTERN REDEVELOPMENT TIF FUND -
NONMAJOR CAPITAL PROJECTS FUND
For the Year Ended April 30, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Property $116,032 $116,032 $88,182 $(27,850)
Investment income 2,032 2,032 721 (1,311)
Total Revenues 118,064 118,064 88,903 (29,161)
EXPENDITURES
Current
General government 85,334 101,060 6,273 94,787
Capital Outlay 700,000 987,500 530,924 456,576
Contingency 132,856 132,856 -132,856
Total Expenditures 918,190 1,221,416 537,197 684,219
Excess (deficiency) of revenues over
(under) expenditures (800,126)(1,103,352)(448,294)655,058
OTHER FINANCING SOURCES
(USES)
Transfers out (240,000)(240,000)(239,313)687
Total Other Financing Sources
(Uses)(240,000)(240,000)(239,313)687
Net Change in Fund Balance $(1,040,126)$(1,343,352)(687,607)$655,745
FUND BALANCE - Beginning of Year 683,921
FUND BALANCE (DEFICIT) - END
OF YEAR $(3,686)
Page 122157
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, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Taxes
Property $826,514 $826,514 $824,585 $(1,929)
Other taxes 1,623,638 1,623,638 1,507,595 (116,043)
Grants and contributions --1,617,926 1,617,926
Charges for services 643,210 643,210 801,815 158,605
Investment income 48,356 48,356 172,285 123,929
Miscellaneous 5,000 5,000 135,037 130,037
Total Revenues 3,146,718 3,146,718 5,059,243 1,912,525
EXPENDITURES
Current
General government 838,365 2,201,773 862,041 1,339,732
Highways and streets 1,770,500 1,804,868 2,100,515 (295,647)
Culture and recreation 100,000 100,000 99,822 178
Capital Outlay 2,242,500 2,694,279 2,951,767 (257,488)
Contingency 680,092 680,092 -680,092
Total Expenditures 5,631,457 7,481,012 6,014,145 1,466,867
Excess (deficiency) of revenues over
(under) expenditures (2,484,739)(4,334,294)(954,902)3,379,392
OTHER FINANCING SOURCES
(USES)
Transfers in 1,299,482 1,299,482 5,918,128 4,618,646
Proceeds from capital asset sales 20,000 20,000 26,551 6,551
Total Other Financing Sources
(Uses)1,319,482 1,319,482 5,944,679 4,625,197
Net Change in Fund Balance $(1,165,257)$(3,014,812)4,989,777 $8,004,589
FUND BALANCE - Beginning of Year 5,938,047
FUND BALANCE - END OF YEAR $10,927,824
Page 123158
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.
159
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENSES, AND NONOPERATING REVENUES (EXPENSES) - BUDGET
AND ACTUAL (BUDGETARY BASIS)
WATERW ORKS AND SEW ERAGE FUND - MAJOR ENTERPRISE FUND
For the Year Ended April 30, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
OPERATING REVENUES
Charges for services $7,909,527 $7,909,527 $7,909,200 $(327)
Connection fees 51,410 51,410 134,681 83,271
Miscellaneous 8,427 8,427 7,998 (429)
Total Operating Revenues 7,969,364 7,969,364 8,051,879 82,515
OPERATING EXPENSES
General and administrative 2,396,822 2,396,822 2,422,300 (25,478)
Operations and maintenance 5,684,249 6,299,746 1,946,923 4,352,823
Contingency 1,257,362 1,257,362 -1,257,362
Total Operating Expenses 9,338,433 9,953,930 4,369,223 5,584,707
NON-OPERATING REVENUES
(EXPENSES)
Investment income 144,920 144,920 269,245 124,325
Loss on disposal of capital assets --(19,363)(19,363)
Principal retirement (1,909,000)(1,909,000)-1,909,000
Interest expense (565,055)(565,055)(600,846)(35,791)
Paying agent fees (3,000)(3,000)(1,500)1,500
Other 500 500 14,710 14,210
Total Non-Operating Revenues
(Expenses)(2,331,635)(2,331,635)(337,754)1,993,881
Page 124160
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, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
OPERATING REVENUES
Charges for services $1,707,000 $1,707,000 $1,524,408 $(182,592)
Miscellaneous 5,873 5,873 246 (5,627)
Total Operating Revenues 1,712,873 1,712,873 1,524,654 (188,219)
OPERATING EXPENSES
General and administrative 657,582 657,582 643,885 13,697
Operations and maintenance 1,058,931 1,086,614 977,825 108,789
Contingency 183,767 183,767 -183,767
Total Operating Expenses 1,900,280 1,927,963 1,621,710 306,253
NON-OPERATING REVENUES
(EXPENSES)
Investment income --9,944 9,944
Principal retirement (78,000)(78,000)-78,000
Interest expense (14,970)(14,970)(16,874)(1,904)
Paying agent fees (500)(500)-500
Other --51,300 51,300
Total Non-Operating Revenues
(Expenses)(93,470)(93,470)44,370 137,840
Page 125161
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.
162
CITY OF LAKE FOREST
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
As of April 30, 2019
Fleet Self Insurance
Liability
Insurance Totals
ASSETS
Current Assets
Cash and cash equivalents $837,022 $4,740,191 $1,696,670 $7,273,883
Receivables
Other 2,011 6,430 2,392,200 2,400,641
Inventories 356,803 --356,803
Prepaid items --552,663 552,663
Total Current Assets 1,195,836 4,746,621 4,641,533 10,583,990
Noncurrent Assets
Capital assets (net of accumulated
depreciation)
Property and equipment 48,047 --48,047
Accumulated depreciation (43,938)--(43,938)
Total Noncurrent Assets 4,109 --4,109
Total Assets 1,199,945 4,746,621 4,641,533 10,588,099
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to
pensions 330,695 --330,695
Deferred outflows related to total OPEB
liability 791 --791
Total Deferred Outflows of Resources 331,486 --331,486
LIABILITIES
Current Liabilities
Accounts payable 48,798 528,856 61,717 639,371
Accrued liabilities 23,241 568,106 151,678 743,025
Total Current Liabilities 72,039 1,096,962 213,395 1,382,396
Noncurrent Liabilities
Compensated absences 33,856 --33,856
Net pension liability 520,632 --520,632
Total OPEB liability 65,888 --65,888
Total Noncurrent Liabilities 620,376 --620,376
Total Liabilities 692,415 1,096,962 213,395 2,002,772
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to
pensions 45,751 --45,751
Total Deferred Inflows of Resources 45,751 --45,751
NET POSITION
Net investment in capital assets 4,109 --4,109
Unrestricted 789,156 3,649,659 4,428,138 8,866,953
TOTAL NET POSITION $793,265 $3,649,659 $4,428,138 $8,871,062
Page 126163
CITY OF LAKE FOREST
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended April 30, 2019
Fleet Self Insurance
Liability
Insurance Totals
OPERATING REVENUES
Charges for services $1,758,278 $4,980,451 $1,836,634 $8,575,363
Total Operating Revenues 1,758,278 4,980,451 1,836,634 8,575,363
OPERATING EXPENSES
General and administrative 1,725,968 5,243,704 1,206,387 8,176,059
Depreciation and amortization 4,804 --4,804
Total Operating Expenses 1,730,772 5,243,704 1,206,387 8,180,863
Operating Income (Loss)27,506 (263,253)630,247 394,500
NONOPERATING REVENUES
Investment income 20,110 111,793 40,163 172,066
Total Nonoperating Revenues 20,110 111,793 40,163 172,066
Change in net position 47,616 (151,460)670,410 566,566
NET POSITION - Beginning of Year (as
restated)745,649 3,801,119 3,757,728 8,304,496
NET POSITION - END OF YEAR $793,265 $3,649,659 $4,428,138 $8,871,062
Page 127164
CITY OF LAKE FOREST
COMBINING STATEMENT OF CASH FLOW S
INTERNAL SERVICE FUNDS
For the Year Ended April 30, 2019
Fleet Self Insurance
Liability
Insurance Totals
CASH FLOWS FROM OPERATING
AC TIVITIES
Receipts from interfund services provided $1,758,607 $4,982,834 $1,327,356 $8,068,797
Paid to suppliers for goods and services (1,263,833)(5,211,569)(1,087,496)(7,562,898)
Paid to employees for services (594,681)--(594,681)
Net Cash Flows From Operating
Activities (99,907)(228,735)239,860 (88,782)
CASH FLOWS FROM INVESTING
AC TIVITIES
Interest received 20,109 111,793 40,163 172,065
Net Cash Flows From Investing Activities 20,109 111,793 40,163 172,065
Net Change in Cash and Cash
Equivalents (79,798)(116,942)280,023 83,283
CASH AND CASH EQUIVALENTS - Beginning
of Year 916,820 4,857,133 1,416,647 7,190,600
CASH AND CASH EQUIVALENTS - END
OF YEAR $837,022 $4,740,191 $1,696,670 $7,273,883
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH FLOWS
FROM OPERATING ACTIVITIES
Operating income (loss)$27,506 $(263,253)$630,247 $394,500
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 329 2,383 (509,278)(506,566)
Inventories (24,352)--(24,352)
Prepaid items --50 50
Deferred outflows related to pensions (296,274)--(296,274)
Accounts payable (4,281)59,399 17,349 72,467
Accrued liabilities -(27,264)101,492 74,228
Accrued salaries (37,391)--(37,391)
Net pension liability 470,536 --470,536
Deferred inflows related to pensions (238,117)--(238,117)
Compensated absences (238)--(238)
Deferred outflows related to total OPEB
liability (791)--(791)
Total OPEB liability (1,639)--(1,639)
NET CASH FLOWS FROM
OPERATING ACTIVITIES $(99,907)$(228,735)$239,860 $(88,782)
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
None
Page 128165
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, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
OPERATING REVENUES
Charges for services $1,752,788 $1,752,788 $1,758,278 $5,490
Total Operating Revenues 1,752,788 1,752,788 1,758,278 5,490
OPERATING EXPENSES
General and administrative 1,864,814 1,873,814 1,725,968 147,846
Depreciation and amortization --4,804 (4,804)
Contingency 187,381 187,381 -187,381
Total Operating Expenses 2,052,195 2,061,195 1,730,772 330,423
NON-OPERATING REVENUES
Investment income 10,000 10,000 20,110 10,110
Page 129166
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, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
OPERATING REVENUES
Charges for services $5,640,000 $5,640,000 $4,980,451 $(659,549)
Total Operating Revenues 5,640,000 5,640,000 4,980,451 (659,549)
OPERATING EXPENSES
General and administrative 5,785,000 5,785,000 5,243,704 541,296
Contingency 578,500 578,500 -578,500
Total Operating Expenses 6,363,500 6,363,500 5,243,704 1,119,796
NON-OPERATING REVENUES
Investment income 65,000 65,000 111,793 46,793
Page 130167
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, 2019
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
OPERATING REVENUES
Charges for services $1,327,348 $1,327,348 $1,836,634 $509,286
Total Operating Revenues 1,327,348 1,327,348 1,836,634 509,286
OPERATING EXPENSES
General and administrative 1,250,000 1,250,000 1,206,387 43,613
Contingency 125,000 125,000 -125,000
Total Operating Expenses 1,375,000 1,375,000 1,206,387 168,613
NON-OPERATING REVENUES
Investment income 40,000 40,000 40,163 163
Page 131168
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.
Ag ency 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.
169
CITY OF LAKE FOREST
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST FUNDS
As of April 30, 2019
Police Pension
Firefighters'
Pension Totals
ASSETS
Cash $63,243 $558,066 $621,309
Money markets 360,405 -360,405
Investments
U.S. Treasury obligations 10,242,088 4,071,113 14,313,201
U.S. Government agencies 229,326 3,547,683 3,777,009
Municipal/corporate bonds 957,459 6,121,387 7,078,846
Mutual funds 17,719,414 24,249,491 41,968,905
Real estate investment fund 3,662,142 -3,662,142
Receivables 70,121 112,982 183,103
Prepaids 4,030 4,442 8,472
Due from primary government 46,214 25,938 72,152
Total Assets 33,354,442 38,691,102 72,045,544
LIABILITIES
Accounts payable 3,616 5,582 9,198
Total Liabilities 3,616 5,582 9,198
NET POSITION
Held in trust for pension benefits $33,350,826 $38,685,520 $72,036,346
Page 132170
CITY OF LAKE FOREST
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST FUNDS
For the Year Ended April 30, 2019
Police Pension
Firefighters'
Pension Total
AD DITIONS
Contributions
Employer $2,504,581 $1,719,445 $4,224,026
Employee 392,258 311,675 703,933
Total Contributions 2,896,839 2,031,120 4,927,959
Interest
Interest 573,427 776,750 1,350,177
Net appreciation in fair value of investments 1,225,046 2,319,038 3,544,084
Total Investment Income 1,798,473 3,095,788 4,894,261
Less Investment expense 82,032 63,654 145,686
Net Investment Income 1,716,441 3,032,134 4,748,575
Total Additions 4,613,280 5,063,254 9,676,534
DEDUCTIONS
Pension benefits and refunds 2,852,542 2,581,621 5,434,163
Other administrative expenses 60,847 52,598 113,445
Total Deductions 2,913,389 2,634,219 5,547,608
Change in Net Position 1,699,891 2,429,035 4,128,926
NET POSITION - Beginning of Year 31,650,935 36,256,485 67,907,420
NET POSITION - END OF YEAR $33,350,826 $38,685,520 $72,036,346
Page 133171
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, 2019
2019
Original Budget Final Budget Actual
Variance with
Final Budget
Additions
Contributions
Employer $2,505,888 $2,505,888 $2,504,581 $(1,307)
Employee 375,000 375,000 392,258 17,258
Total contributions 2,880,888 2,880,888 2,896,839 15,951
Investment Income
Interest 550,000 550,000 573,427 23,427
Net appreciation in fair value of
investments 1,700,000 1,700,000 1,225,046 (474,954)
Total investment income 2,250,000 2,250,000 1,798,473 (451,527)
Less Investment expense 70,000 70,000 82,032 (12,032)
Net investment income 2,180,000 2,180,000 1,716,441 (463,559)
Total additions 5,060,888 5,060,888 4,613,280 (447,608)
Deductions
Pension benefits and refunds 2,750,000 2,750,000 2,852,542 (102,542)
Other administrative expenses 49,880 49,880 60,847 (10,967)
Contingency 286,988 286,988 -286,988
Total deductions 3,086,868 3,086,868 2,913,389 173,479
Change in net position $1,974,020 $1,974,020 1,699,891 $(274,129)
Net position, beginning of year 31,650,935
Net position, end of year $33,350,826
Page 134172
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, 2019
2019
Original Budget Final Budget Actual
Variance with
Final Budget
Additions
Contributions
Employer $1,721,953 $1,721,953 $1,719,445 $(2,508)
Employee 305,000 305,000 311,675 6,675
Total contributions 2,026,953 2,026,953 2,031,120 4,167
Investment Income
Interest 750,000 750,000 776,750 26,750
Net appreciation in fair value of
investments 1,760,000 1,760,000 2,319,038 559,038
Total investment income 2,510,000 2,510,000 3,095,788 585,788
Less Investment expense 63,000 63,000 63,654 (654)
Net investment income 2,447,000 2,447,000 3,032,134 585,134
Total additions 4,473,953 4,473,953 5,063,254 589,301
Deductions
Pension benefits and refunds 2,650,000 2,650,000 2,581,621 68,379
Other administrative expenses 46,880 46,880 52,598 (5,718)
Contingency 275,988 275,988 -275,988
Total deductions 2,972,868 2,972,868 2,634,219 338,649
Change in net position $1,501,085 $1,501,085 2,429,035 $927,950
Net position, beginning of year 36,256,485
Net position, end of year $38,685,520
Page 135173
Page 136
CITY OF LAKE FOREST
Statement of Changes in Assets and Liabilities
Agency Fund - Special Assessment Fund
As of April 30, 2019
Balance,Balance,
May 1, 2018 Additions Deletion April 30, 2019
Assets
Cash and cash equivalents 60,174$ -$ -$ 60,174$
Liabilities
Due to special assessment districts 60,174$ -$ -$ 60,174$
174
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.
175
Page 137
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 4,497,320$ -$ 4,497,320$
uncollectibles)
4,111,613 - 4,111,613
10,060 - 10,060
Capital assets not depreciated - 238,500 238,500
Capital assets depreciated, net of
accumulated depreciation - 2,735,768 2,735,768
8,618,993 2,974,268 11,593,261
Deferred outflows of Resources
Deferred outflows related to pensions - 899,882 899,882
Deferred outflows related to total OPEB liability - 1,093 1,093
Total deferred outflows of resources - 900,975 900,975
Total Assets and Deferred Outflows of
Resources 8,618,993$ 3,875,243$ 12,494,236$
Liabilities, Deferred Inflows of Resources,
and Fund Balance/Net Position
Liabilities
50,464$ -$ 50,464$
79,354 - 79,354
Long-term obligations
Due within one year - 7,352 7,352
Due in more than one year - 1,779,625 1,779,625
Total liabilities 129,818 1,786,977 1,916,795
Deferred Inflows of Resources
Property taxes levied for future periods 4,111,613 - 4,111,613
Deferred inflows related to pensions - 124,393 124,393
Total deferred inflows of resources 4,111,613 124,393 4,236,006
Fund Balance/Net Position
Nonspendable - prepaids - -
Unassigned 4,377,562 (4,377,562) -
Net position
Net investment in capital assets - 2,971,916 2,971,916
Unrestricted - 3,369,519 3,369,519
Total fund balance/net position 4,377,562 1,963,873 6,341,435
Total Liabilities, Deferred Inflows of
Resources, and Fund Balance/Net
Position 8,618,993$ 3,875,243$ 12,494,236$
Accounts payable
Accrued liabilities
As of April 30, 2019
Property taxes
Receivables (net of allowance for
Other taxes
Total assets
Capital assets
176
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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, 2019
Statement
General of
Fund Adjustments Activities
Revenues
4,063,010$ -$ 4,063,010$
36,944 - 36,944
115,158 - 115,158
31,426 - 31,426
Fines 15,772 - 15,772
131,747 - 131,747
4,394,057 - 4,394,057
Expenditures/expenses
Current 3,472,012 79,885 3,551,897
Capital Outlay 104,056 (104,056) -
Debt Service 28,333 (28,333) -
Total expenditures/expenses 3,604,401 (52,504) 3,551,897
Net change in fund balance/net position 789,656 52,504 842,160
3,587,906 1,911,369 5,499,275
Fund balance/net position, end of year 4,377,562$ 1,963,873$ 6,341,435$
Fund balance/net position (as restated), beginning
of year
Property taxes
Charges for services
Total revenues
Intergovernmental
Grants and contributions
Investment Income
177
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CITY OF LAKE FOREST
Summary of Debt Service Requirements to Maturity
As of April 30, 2019
General
Fiscal Obligation
year Bonds
2020 5,531,244$
2021 5,802,829
2022 5,675,141
2023 5,678,151
2024 5,278,210
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 66,107,421$
178
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CITY OF LAKE FOREST
Debt Service Requirements to Maturity - General Obligation Bonds
As of April 30, 2019
Year Principal Interest Principal Interest Principal Interest
2020 65,000$ 7,932$ 17,993$ 2,563$ 124,858$ 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 - - - - 150,610 5,497
2025 - - - - - -
2026 - - - - - -
2027 - - - - - -
2028 - - - - - -
2029 - - - - - -
2030 - - - - - -
2031 - - - - - -
2032 - - - - - -
2033 - - - - - -
2034 - - - - - -
2035 - - - - - -
2036 - - - - - -
2037 - - - - - -
2038 - - - - - -
285,000$ 20,770$ 77,275$ 6,619$ 686,509$ 73,472$
Special Service Area 25 Special Service Area 26 Special Service Area 29
Fiscal
Tax Bonds Tax Bonds Tax Bonds
179
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CITY OF LAKE FOREST
Debt Service Requirements to Maturity - General Obligation Bonds
As of April 30, 2019
Year Principal Interest Principal Interest Principal Interest
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 - - - - - -
2,315,000$ 537,198$ 3,000,000$ 2,185,000$ 4,495,000$ 1,444,836$
Series 2009 Series 2010 Series B 2010 Series C
Fiscal
Obilgation Bonds Obligation Bonds Obilgation Bonds
180
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CITY OF LAKE FOREST
Debt Service Requirements to Maturity - General Obligation Bonds
As of April 30, 2019
Fiscal
Year Principal Interest Principal Interest
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 - - - -
270,000$ 10,200$ 11,875,000$ 966,350$
2011 Series A 2011 Series B
Obligation Bonds Obligation Bonds
181
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CITY OF LAKE FOREST
Debt Service Requirements to Maturity - General Obligation Bonds
As of April 30, 2019
Fiscal
Year Principal Interest Principal Interest
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 - - - -
9,235,000$ 3,192,936$ 9,370,000$ 3,213,427$
Series 2013 Series 2015
Obligation BondsObligation Bonds
182
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CITY OF LAKE FOREST
Debt Service Requirements to Maturity - General Obligation Bonds
As of April 30, 2019
Fiscal
Year Principal Interest Principal Interest Total
2020 -$ 271,153$ 3,797,851$ 1,733,393$ 5,531,244$
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 4,015,610 1,262,600 5,278,210
2025 525,000 260,851 2,050,000 1,137,201 3,187,201
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 2,930,000 837,921 3,767,921
2030 590,000 191,685 3,025,000 730,323 3,755,323
2031 610,000 173,988 3,215,000 609,126 3,824,126
2032 630,000 155,688 3,275,000 478,526 3,753,526
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$ 3,552,828$ 50,903,784$ 15,203,636$ 66,107,420$
Series 2017 Total
Obligation Bonds Requirements
183
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CITY OF LAKE FOREST
Special Service Area 25 Special Tax Bonds – 2003 Series
April 30, 2019
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
2019 $65,000
2020 70,000
2021 75,000
2022 75,000
—
$285,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
2022 —— — 2023 — 2023 —
Thereafter — — — Thereafter — Thereafter —
$285,000 $20,770 $305,770
Coupons due on
184
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CITY OF LAKE FOREST
Special Service Area 26 Special Tax Bonds – 2003 Series
April 30, 2019
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
2019 $17,993
2020 18,839
2021 19,743
2022 20,701
—
$77,276
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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 20,701 704 21,405 2022 352 2022 352
2022 — — — 2023 — 2023 —
Thereafter — — — Thereafter — Thereafter —
$77,276 $6,619 $83,895
Coupons due on
185
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CITY OF LAKE FOREST
Special Service Area 29 Special Tax Bonds - 2004 Series
April 30, 2019
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
2019 $124,857
2020 130,663
2021 136,870
2022 143,508
2023 150,611
$686,509
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2018 124,858 $23,213 $148,071 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
2022 150,610 5,497 156,107 2023 2,749 2023 2,748
$686,509 $73,472 $759,981
Coupons due on
December 20, 2004
186
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CITY OF LAKE FOREST
General Obligation Bonds – 2009
April 30, 2019
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
2019 $190,000
2020 200,000
2021 205,000
2022 215,000
2,023 225,000
Thereafter 1,280,000
$2,315,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
2022 225,000 60,745 285,745 2023 30,373 2023 30,372
Thereafter 1,280,000 160,460 1,440,460 Thereafter 80,230 Thereafter 80,230
$2,315,000 $537,198 $2,852,198
Coupons due on
May 14, 2009
187
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CITY OF LAKE FOREST
General Obligation Bonds – 2010B
April 30, 2019
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
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
2022 —172,500 172,500 2023 86,250 2023 86,250
Thereafter 3,000,000 1,322,500 4,322,500 Thereafter 661,250 Thereafter 661,250
$3,000,000 $2,185,000 $5,185,000
Coupons due on
May 12, 2010
188
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CITY OF LAKE FOREST
General Obligation Bonds – 2010C
April 30, 2019
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
2019 $215,000
2020 405,000
2021 415,000
2022 425,000
2023 435,000
Thereafter 2,600,000
$4,495,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
2022 435,000 158,793 593,793 2023 79,397 2023 79,396
Thereafter 2,600,000 463,847 3,063,847 Thereafter 231,923 Thereafter 231,924
$4,495,000 $1,444,836 $5,939,836
Coupons due on
May 12, 2010
189
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CITY OF LAKE FOREST
General Obligation Bonds – 2011A
April 30, 2019
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
2019 $130,000
2020 140,000
2021 —
2022 —
2023 —
Thereafter —
$270,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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 —
2022 —— — 2023 — 2023 —
Thereafter —— — Thereafter — Thereafter —
$270,000 $10,200 $280,200
September 6, 2011
Coupons due on
190
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CITY OF LAKE FOREST
General Obligation Bonds – 2011B
April 30, 2019
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
2019 $2,400,000
2020 2,470,000
2021 2,530,000
2022 2,605,000
2023 1,870,000
Thereafter —
$11,875,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
2022 1,870,000 56,100 1,926,100 2023 28,050 2023 28,050
Thereafter —— — Thereafter — Thereafter —
$11,875,000 $966,350 $12,841,350
September 6, 2011
Coupons due on
191
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CITY OF LAKE FOREST
General Obligation Bonds – 2013
April 30, 2019
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
2019 $350,000
2020 430,000
2021 435,000
2022 440,000
2023 450,000
Thereafter 7,130,000
$9,235,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
2022 450,000 285,762 735,762 2023 142,881 2023 142,881
Thereafter 7,130,000 1,643,673 8,773,673 Thereafter 821,837 Thereafter 821,836
$9,235,000 $3,192,936 $12,427,936
September 16, 2013
Coupons due on
192
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CITY OF LAKE FOREST
General Obligation Bonds – 2015
April 30, 2019
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
2019 $305,000
2020 305,000
2021 340,000
2022 355,000
2023 370,000
Thereafter 7,695,000
$9,370,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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 134,713 2021 134,712
2021 355,000 260,925 615,925 2022 130,463 2022 130,462
2022 370,000 252,050 622,050 2023 126,025 2023 126,025
Thereafter 7,695,000 1,869,302 9,564,302 Thereafter 934,671 Thereafter 934,671
$9,370,000 $3,213,427 $12,583,427
August 3, 2015
Coupons due on
193
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CITY OF LAKE FOREST
General Obligation Bonds – 2017
April 30, 2019
Date of issue:
Date of maturity:December 15, 2037
Authorized issue:$9,295,000
Denomination of bonds:$5,000
Interest rates:2.00 - 3.50%
Interest dates:June 15 and December 15
Payable at:Bank of New York Mellon
Chicago, Illinois
Redeemable annually
on December 15 Amount
2019 $—
2020 —
2021 —
2022 —
2023 515,000
Thereafter 8,780,000
$9,295,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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 —271,153 271,153 2022 135,577 2022 135,576
2022 515,000 271,153 786,153 2023 135,577 2023 135,576
Thereafter 8,780,000 2,197,063 10,977,063 Thereafter 1,098,532 Thereafter 1,098,531
$9,295,000 $3,552,828 $12,847,828
June 5, 2017
Coupons due on
194
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CITY OF LAKE FOREST
Debt Service Fund
Combining Balance Sheet
As of April 30, 2019
Special Service Special Service Special Service 2004 Series B/
Area 25 Area 26 Area 29 2011B
General General General General
Obligation Obligation Obligation Obligation
Assets Bonds Bonds Bonds Bonds
Cash and cash equivalents 16,121$ 4,771$ 6,514$ 1,513,074$
uncollectibles):
72,332 20,740 146,341 -
88,453$ 25,511$ 152,855$ 1,513,074$
Deferred inflows of resources
Property taxes levied to finance FY18 72,332 20,740 146,341 -
Fund Balance
Fund balance- restricted for
debt service 16,121 4,771 6,514 1,513,074
Total deferred inflows of resources and fund
balances 88,453$ 25,511$ 152,855$ 1,513,074$
Receivables (net of allowance for
Property taxes
Total assets
195
Page 157
2009 2010 2013 2015
General General General General
Obligation Obligation Obligation Obligation
Bonds Bonds Bonds Bonds Total
30,391$ 42,668$ 23,736$ 2,358$ 1,639,633$
276,765 465,142 676,269 226,444 1,884,033
307,156$ 507,810$ 700,005$ 228,802$ 3,523,666$
276,765 465,142 676,269 226,444 1,884,033
30,391 42,668 23,736 2,358 1,639,633
307,156$ 507,810$ 700,005$ 228,802$ 3,523,666$
196
Page 158
CITY OF LAKE FOREST
Debt Service Fund
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended April 30, 2019
Special Service Special Service Special Service 2004 Series B/
Area 25 Area 26 Area 29 2011B
General General General General
Obligation Obligation Obligation Obligation
Bonds Bonds Bonds Bonds
Revenues
Taxes:
Property taxes 75,110$ 20,814$ 146,981$ -$
Grants and contributions- IRS rebate - - - -
Investment income 1,043 262 1,400 37,088
Total Revenues 76,153 21,076 148,381 37,088
Expenditures
General government - - - 250
Debt Service:
Principal 65,000 17,202 119,423 443,000
Interest 9,525 3,106 26,855 77,855
Total expenditures 74,525 20,308 146,278 521,105
Excess (deficiency) of revenues
over expenditures 1,628 768 2,103 (484,017)
Other financing sources:
Transfers in - - - 574,215
Transfers out - - - -
Total other financing sources (uses)- - - 574,215
Net change in fund balance 1,628 768 2,103 90,198
Fund balance- beginning of the year 14,493 4,003 4,411 1,422,876
Fund balance- end of the year 16,121$ 4,771$ 6,514$ 1,513,074$
197
Page 159
2009 2010 2013 2015
General General General General
Obligation Obligation Obligation Obligation
Bonds Bonds Bonds Bonds Total
281,731$ 488,887$ 538,604$ 226,490$ 1,778,617$
- 150,003 - - 150,003
2,501 3,799 3,920 1,208 51,221
284,232 642,689 542,524 227,698 1,979,841
500 1,000 750 1,000 3,500
185,000 225,000 200,000 175,000 1,429,625
93,745 408,599 333,763 289,050 1,242,498
279,245 634,599 534,513 465,050 2,675,623
4,987 8,090 8,011 (237,352) (695,782)
- - - 239,313 813,528
- - - - -
- - - 239,313 813,528
4,987 8,090 8,011 1,961 117,746
25,404 34,578 15,725 397 1,521,887
30,391$ 42,668$ 23,736$ 2,358$ 1,639,633$
198
Statistical Section
Contents Page
Financial Trends 160 - 169
Revenue Capacity 170 - 177
Debt Capacity 178 - 182
Demographic and Economic Information 183 - 185
Operating Information 186 - 188
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.
199
Page 160
CITY OF LAKE FOREST
Net Position by Component
Last Ten Fiscal Years
Fiscal Years 2019 2018 2017 2016
Governmental Activities
Net Investment in Capital Assets 164,675,251$ 166,607,491$ 170,568,584$ 181,481,470$
Restricted 26,714,972 20,193,505 15,476,976 18,506,073
Unrestricted (14,809,677) (11,006,718) (9,068,405) (18,479,928)
Total Governmental Activities Net Position 176,580,546$ 175,794,278$ 176,977,155$ 181,507,615$
Business-type Activities
Net Investment in Capital Assets 39,610,155$ 40,729,712$ 37,504,482$ 37,582,505$
Unrestricted 9,508,483 8,950,670 7,696,321 8,323,401
Total Business-type Activities Net Position 49,118,638$ 49,680,382$ 45,200,803$ 45,905,906$
Primary Government
Net Investment in Capital Assets 204,285,406$ 207,337,203$ 208,073,066$ 219,063,975$
Restricted 26,714,972 20,193,505 15,476,976 18,506,073
Unrestricted (5,301,194) (2,056,048) (1,372,084) (10,156,527)
Total Primary Government Net Position 225,699,184$ 225,474,660$ 222,177,958$ 227,413,521$
*Beginning in 2016, the City implemented GASB 68 which resulted in the inclusion
of a net pension liability.
Data Source
Audited Financial Statements
200
Page 161
2015 2014 2013 2012 2011 2010
181,056,601$ 184,270,349$ 187,500,531$ 190,779,593$ 192,568,460$ 193,225,047$
15,737,797 16,860,362 16,064,099 16,499,487 3,645,693 3,001,515
26,747,317 23,689,130 21,126,818 19,550,532 29,683,545 25,090,240
223,541,715$ 224,819,841$ 224,691,448$ 226,829,612$ 225,897,698$ 221,316,802$
36,617,378$ 36,163,443$ 36,077,752$ 36,753,670$ 37,709,887$ 38,075,853$
8,941,920 9,739,336 9,880,856 8,918,142 8,513,924 8,617,858
45,559,298$ 45,902,779$ 45,958,608$ 45,671,812$ 46,223,811$ 46,693,711$
217,673,979$ 220,433,792$ 223,578,283$ 227,533,263$ 230,278,347$ 231,300,900$
15,737,797 16,860,362 16,064,099 16,499,487 3,645,693 3,001,515
35,689,237 33,428,466 31,007,674 28,468,674 38,197,469 33,708,098
269,101,013$ 270,722,620$ 270,650,056$ 272,501,424$ 272,121,509$ 268,010,513$
201
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CITY OF LAKE FOREST
Change in Net Position
Last Ten Fiscal Years
Fiscal Years 2019 2018 2017 2016
Expenses
Governmental Activities
General Government 13,773,790$ 9,884,646$ 16,882,976$ 11,675,363$
Highway and Streets 9,081,471 9,621,569 10,923,639 9,230,548
Sanitation 2,580,043 2,585,940 2,611,231 2,208,326
Culture and Recreation 8,859,391 10,003,119 10,023,195 8,463,259
Public Safety 19,769,395 17,017,092 17,048,209 16,360,830
Interest 1,231,944 1,271,181 1,559,100 1,293,742
Total Governmental Activities Expenses 55,296,034$ 50,383,547$ 59,048,350$ 49,232,068$
Business-type Activities
Waterworks and sewerage 7,832,615 8,122,998 8,510,811 7,239,042
Golf 1,875,677 1,604,261 2,095,510 1,868,252
Total Business-type Activities Expenditures 9,708,292 9,727,259 10,606,321 9,107,294
Total Primary Government Expenses 65,004,326$ 60,110,806$ 69,654,671$ 58,339,362$
Program Revenue
Governmental Activities
Charges for Services
General Government 5,007,655$ 5,203,210$ 8,860,169$ 8,191,440$
Highways and Streets 2,730,122 1,006,644 782,953 990,840
Sanitation 749,620 721,276 734,111 697,435
Culture and Recreation 3,117,795 3,491,365 2,810,762 3,257,796
Public Safety 2,117,186 1,992,985 1,689,547 1,552,567
Operating Grants and Contributions 985,676 1,298,006 1,088,579 1,368,451
Capital Grants and Contributions 505,988 356,178 1,174,000 280,675
Total Governmental Activities Program
Revenues 15,214,042 14,069,664 17,140,121 16,339,204
Business-type activities
Charges for Services
Waterworks and sewerage 7,818,777 8,083,554 7,873,741 7,477,558
Golf 1,524,654 1,480,618 1,606,661 1,759,271
Operating Grants and Contributions 228,332 - - -
Capital Grants and Contributions - - - -
Total Business-type Activities Program
Revenues 9,571,763 9,564,172 9,480,402 9,236,829
Total Primary Government Revenues 24,785,805$ 23,633,836$ 26,620,523$ 25,576,033$
Net (Expense) Revenue
Governmental Activities (40,081,992)$ (36,313,883)$ (41,908,229)$ (32,892,864)$
Business-type Activities (136,529) (163,087) (1,125,919) 129,535
Total Primary Government Net Expense (40,218,521)$ (36,476,970)$ (43,034,148)$ (32,763,329)$
202
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2015 2014 2013 2012 2011 2010
12,604,331$ 12,311,198$ 16,176,326$ 12,080,189$ 13,321,852$ 13,974,412$
8,839,231 7,762,403 7,536,444 8,304,860 8,687,404 9,469,570
2,474,355 2,586,125 2,512,559 2,568,820 2,349,916 2,183,373
10,172,391 10,397,593 10,352,252 9,469,832 9,402,752 9,589,857
15,303,399 14,430,151 13,748,855 13,583,116 13,398,718 13,116,738
1,357,552 1,333,267 1,362,715 1,420,087 1,424,317 1,097,805
50,751,259$ 48,820,737$ 51,689,151$ 47,426,904$ 48,584,959$ 49,431,755$
8,353,825 7,476,752 8,287,297 7,985,394 8,008,372 7,882,904
1,642,121 1,554,678 1,459,394 1,371,380 1,393,869 1,345,437
9,995,946 9,031,430 9,746,691 9,356,774 9,402,241 9,228,341
60,747,205$ 57,852,167$ 61,435,842$ 56,783,678$ 57,987,200$ 58,660,096$
5,442,475$ 4,756,948$ 4,838,151$ 4,771,863$ 4,455,844$ 4,822,344$
710,795 741,334 753,487 846,366 693,029 809,661
682,062 77,147 58,564 81,577 171,030 104,158
3,156,699 3,314,856 3,342,913 3,392,303 3,650,467 4,121,592
1,795,521 1,950,998 1,861,619 1,678,032 1,930,715 1,540,927
1,345,670 1,105,191 1,777,734 1,433,791 846,781 1,413,819
468,255 757,239 25,000 360,407 5,982,721 925,524
13,601,477 12,703,713 12,657,468 12,564,339 17,730,587 13,738,025
8,034,469 7,521,323 8,598,079 7,477,637 7,344,740 7,048,854
1,414,217 1,397,836 1,320,455 1,238,016 1,264,624 1,333,879
- - - - - -
- - - - 162,051 97,724
9,448,686 8,919,159 9,918,534 8,715,653 8,771,415 8,480,457
23,050,163$ 21,622,872$ 22,576,002$ 21,279,992$ 26,502,002$ 22,218,482$
(37,149,782)$ (36,117,024)$ (39,031,683)$ (34,862,565)$ (30,854,372)$ (35,693,730)$
(547,260) (112,271) 171,843 (641,121) (630,826) (747,884)
(37,697,042)$ (36,229,295)$ (38,859,840)$ (35,503,686)$ (31,485,198)$ (36,441,614)$
203
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CITY OF LAKE FOREST
Change in Net Position (Cont.)
Last Ten Fiscal Years
Fiscal Years 2019 2018 2017 2016
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property 27,591,773$ 26,193,444$ 25,928,864$ 25,006,224$
Sales 2,095,938 2,105,736 2,829,607 2,889,306
Income and Use 2,593,506 2,272,639 2,306,546 2,251,828
Telecommunications and Utility 3,603,381 3,440,365 3,596,175 3,551,491
Real Estate Transfer Tax 1,471,595 1,622,900 1,398,160 1,288,175
Other 2,410,453 2,178,246 636,368 514,231
Investment Earnings 2,215,202 1,665,391 1,042,049 145,329
Miscellaneous - - - -
Gain (loss) on sale of assets 7,775 (3,874) - -
Transfers 786,850 (4,343,841) (360,000) (924,496)
Total Government Activities 42,776,473 35,131,006 37,377,769 34,722,088
Business-type Activities
Investment Earnings 279,189$ 236,990$ 58,366$ 40,362$
Other 299,176 61,835 2,450 6,033
Transfers (786,850) 4,343,841 360,000 924,496
Total Business-type Activities (208,485) 4,642,666 420,816 970,891
Total Primary Government 42,567,988$ 39,773,672$ 37,798,585$ 35,692,979$
Change in Net Position
Governmental Activities 2,694,481$ (1,182,877)$ (4,530,460)$ 1,829,224$
Business-type Activities (345,014) 4,479,579 (705,103) 1,100,426
Total Primary Government Change
in Net Position 2,349,467$ 3,296,702$ (5,235,563)$ 2,929,650$
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.
204
Page 165
2015 2014 2013 2012 2011 2010
24,468,769$ 23,744,650$ 25,051,411$ 25,428,378$ 24,739,956$ 24,383,716$
2,851,103 3,047,529 3,183,479 2,577,304 2,554,772 2,392,497
2,386,567 2,182,325 2,131,711 1,938,686 1,849,046 1,762,425
3,954,001 4,026,972 3,736,586 3,981,548 3,968,072 3,967,398
1,224,610 1,633,580 1,209,113 1,215,407 1,279,935 878,925
534,625 581,443 493,418 492,746 422,080 372,640
547,118 637,193 491,196 264,432 573,508 852,245
73,613 669,145 573,705 33,724 150,049 60,000
- - - - - -
(168,750) (97,000) (77,100) (37,746) (102,150) (615,816)
35,871,656 36,425,837 36,793,519 35,894,479 35,435,268 34,054,030
33,408 38,550 37,853 51,376 58,776 64,001
1,621 - - - - -
168,750 97,000 77,100 37,746 102,150 615,816
203,779 135,550 114,953 89,122 160,926 679,817
36,075,435$ 36,561,387$ 36,908,472$ 35,983,601$ 35,596,194$ 34,733,847$
(1,278,126)$ 308,813$ (2,238,164)$ 1,031,914$ 4,580,896$ (1,639,700)$
(343,481) 23,279 286,796 (551,999) (469,900) (68,067)
(1,621,607)$ 332,092$ (1,951,368)$ 479,915$ 4,110,996$ (1,707,767)$
205
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CITY OF LAKE FOREST
Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Years 2019 2018 2017 2016
General Fund
Nonspendable 129,280$ 150,038$ 778,160$ 1,272,224$
Restricted - - - -
Unassigned 28,815,904 29,130,844 28,799,288 22,509,969
Reserved - - - -
Unreserved - - - -
Total General Fund 28,945,184 29,280,882 29,577,448 23,782,193
All other Governmental Funds
Nonspendable 32,837 28,688 536,121 408,539
Restricted 26,656,696 20,806,879 19,420,288 20,337,111
Assigned - - - 1,456,053
Unassigned (3,686) - - -
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 26,685,847 20,835,567 19,956,409 22,201,703
Total Governmental Funds 55,631,031$ 50,116,449$ 49,533,857$ 45,983,896$
*The City implemented GASB Statement #54 in FY2012.
Data Source
Audited Financial Statements
206
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2015 2014 2013 2012*2011 2010
1,648,832$ 2,126,990$ 2,775,449$ 2,159,403$ -$ -$
957,420 957,420 957,420 957,420 - -
17,910,037 14,530,550 11,020,723 10,601,190 - -
- - - - 2,988,884 1,071,068
- - - - 9,239,135 9,815,220
20,516,289 17,614,960 14,753,592 13,718,013 12,228,019 10,886,288
381,173 - 43,333 43,333 - -
14,726,999 16,127,257 15,605,203 16,171,794 - -
1,448,736 1,449,284 1,598,819 1,591,600 - -
(1,022,136) - - - - -
- - - - - -
- - - - 4,333 43,306
- - - - - -
- - - - 2,808,826 2,839,264
- - - - - -
- - - - 9,869,178 8,209,263
- - - - 6,189,372 3,171,421
- - - - - -
15,534,772 17,576,541 17,247,355 17,806,727 18,871,709 14,263,254
36,051,061$ 35,191,501$ 32,000,947$ 31,524,740$ 31,099,728$ 25,149,542$
207
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CITY OF LAKE FOREST
Change in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Years 2019 2018 2017 2016 2015
Revenues
Property Taxes 27,591,773$ 26,193,444$ 25,928,864$ 25,006,224$ 24,468,769$
Other Taxes 4,775,587 4,786,506 4,609,057 4,317,316 4,641,466
Intergovenmental revenues 6,717,794 6,331,183 6,656,768 6,680,193 6,972,923
Grants and contributions 2,220,550 997,289 1,419,736 1,056,523 950,823
Charges for Services 8,759,327 8,833,079 8,005,317 8,506,756 7,935,973
Liscenses and permits 3,456,703 3,232,276 5,157,398 5,222,568 2,821,066
Fines and forefeitures 355,304 345,438 321,168 260,407 287,333
Investment income 2,043,136 1,553,167 989,515 115,462 524,150
Miscellaneous revenue 1,511,534 1,831,152 841,731 779,137 790,344
Total Revenue 57,431,708 54,103,534 53,929,554 51,944,586 49,392,847
Expenditure
General Government 11,657,265$ 10,469,740$ 11,581,286$ 10,811,408$ 10,248,830
Highways and streets 4,577,657 2,354,587 3,118,461 2,157,463 2,371,461
Sanitation 2,480,420 2,290,986 2,311,435 2,276,433 2,235,135
Culture and recreation 9,319,869 8,853,547 8,532,289 8,338,284 8,457,043
Public Safety 16,900,348 15,520,779 15,126,874 15,090,712 14,469,408
Capital Outlay 3,971,995 8,746,881 5,439,469 10,992,926 7,582,668
Debt Service
Principal 1,429,625 1,782,156 7,906,696 1,791,579 1,623,436
Interest 1,242,498 1,277,596 1,639,191 1,293,634 1,400,609
Total Expenditures 51,579,677 51,296,272 55,655,701 52,752,439 48,388,590
Excess (Deficiency) of Revenues
over Expenditures 5,852,031 2,807,262 (1,726,147) (807,853) 1,004,257
Other Financing Sources (Uses)
Transfers in 7,280,685$ 4,799,274$ 7,776,661$ 2,846,321$ 2,020,085
Transfers out (7,644,685) (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 26,551 26,076 5,636,108 73,224 24,053
Total Other Financing Sources (Uses)(337,449) (2,224,670) 5,276,108 10,740,688 (144,697)
Net Change in Fund Balance 5,514,582$ 582,592$ 3,549,961$ 9,932,835$ 859,560$
Debt Service
as a Percentage of Non-Capital Expenditures 5.42%6.49%17.36%6.54%6.43%
208
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2014 2013 2012 2011 2010
23,744,650$ 25,051,411$ 25,428,378$ 24,739,956$ 24,383,716$
11,471,849 10,754,307 10,205,691 10,073,905 9,433,885
576,125 612,357 589,960 523,185 1,304,368
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
2,477,338 2,450,194 2,475,739 2,246,336 2,135,888
297,005 368,941 372,607 409,539 372,924
610,601 462,579 225,225 531,666 815,520
759,384 1,225,082 730,813 1,074,576 1,374,476
48,272,701 49,434,921 48,096,950 48,333,142 48,371,146
10,112,393 14,242,768 10,313,031 11,929,446 12,226,189
2,293,840 2,044,225 2,139,656 2,449,911 3,897,758
2,212,166 2,193,091 2,228,844 2,194,511 2,056,528
8,686,298 9,282,695 8,463,547 8,559,331 8,816,962
14,299,583 13,826,732 13,723,801 13,291,727 13,062,453
5,527,772 4,586,574 6,641,923 6,348,572 11,376,490
1,400,950 1,377,736 2,531,876 15,659,313 2,877,662
1,319,276 1,392,342 1,667,372 1,284,755 1,173,967
45,852,278 48,946,163 47,710,050 61,717,566 55,488,009
2,420,423 488,758 386,900 (13,384,424) (7,116,863)
3,224,306 2,829,243 2,296,270 1,844,410 1,847,105
(3,321,306) (2,906,343) (2,334,016) (1,946,560) (2,462,921)
- - - 18,090,000 3,680,000
- - - - 2,300,000
- - - - -
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 -
770,131 (12,551) 38,112 19,334,610 5,383,235
3,190,554$ 476,207$ 425,012$ 5,950,186$ (1,733,628)$
6.17%5.85%8.31%8.62%8.62%
209
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CITY OF LAKE FOREST
Assessed Value and Actual Value of Taxable Property
Last Ten Levy Years
Total Estimated Estimated
Tax Total Taxable Direct Actual Actual
Levy Residential Commercial Industrial Other Increment Assessed Tax Taxable Taxable
Year Property Property Property Property Financing Value Rate Value Value
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%
2018 2,305,181,606 214,536,978 52,832 7,152,663 4,202,435 2,531,126,514 1.2782 7,593,379,542 33.333%
Data Source
Office of the County Clerk
Note : Property is assessed at 33 1/3% of actual value; property tax rates per $100 of assessed valuation.
The City's TIF Increment Financing district expired for 2012
A new City TIF Increment Financing district initiated for 2016
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CITY OF LAKE FOREST
Property Tax Rates - Direct and Overlapping Governments
Based on Shields Township
Last Ten Levy Years
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Bonds 0.090 0.096 0.068 0.071 0.088 0.090 0.067 0.059 0.060 0.066
Corporate 0.405 0.446 0.483 0.544 0.580 0.590 0.619 0.603 0.600 0.620
Firemen's Pension 0.034 0.037 0.041 0.046 0.052 0.054 0.053 0.050 0.061 0.065
IMRF 0.054 0.059 0.032 0.035 0.037 0.038 0.037 0.035 0.035 0.035
Library 0.105 0.116 0.126 0.141 0.152 0.155 0.153 0.146 0.145 0.149
Library Sites & Building 0.013 0.014 0.015 0.016 0.017 0.017 0.017 0.016 0.016 0.016
Parks/Park Maintenance 0.097 0.106 0.114 0.123 0.191 0.194 0.196 0.187 0.184 0.188
Playground & Recreation **0.043 0.046 0.050 0.055 0.000 0.000 0.000 0.000 0.000 0.000
Police Pension 0.050 0.057 0.060 0.066 0.076 0.080 0.082 0.078 0.083 0.087
Recreation for Handicapped Rec.0.011 0.013 0.014 0.016 0.018 0.018 0.018 0.018 0.018 0.019
Social Security 0.032 0.035 0.037 0.038 0.037 0.035 0.035 0.035
City Direct Rates *0.902 0.990 1.035 1.148 1.248 1.274 1.279 1.227 1.237 1.280
Overlapping Rates
College of Lake County 0.200 0.218 0.240 0.272 0.296 0.306 0.299 0.285 0.281 0.282
County of Lake 0.464 0.505 0.554 0.608 0.663 0.682 0.663 0.632 0.622 0.612
Lake County Forest Preserve 0.200 0.198 0.201 0.212 0.218 0.210 0.208 0.193 0.187 0.182
North Shore Sanitary District 0.124 0.136 0.150 0.150 0.164 0.169 0.166 0.157 0.153 0.153
School District 67, Elem.0.998 1.095 1.186 1.322 1.424 1.452 1.429 1.367 1.355 1.391
School District 115, High School 1.069 1.101 1.191 1.322 1.420 1.450 1.409 1.329 1.314 1.336
Township 0.048 0.039 0.043 0.036 0.037 0.039 0.038 0.036 0.035 0.035
Township Road and Bridge 0.020 0.023 0.026 0.029 0.032 0.033 0.032 0.031 0.030 0.031
Total tax rate 4.025 4.305 4.626 5.099 5.502 5.615 5.523 5.257 5.214 5.302
City's share of total tax rate 22%23%22%23%23%23%23%23%24%24%
Data Source
Office of the County Clerk - Shields Township
Lake Forest lies within five townships - Moraine, Shields, Vernon, West Deerfield and Libertyville. Therefore, the tax rates for support of the Township government and for the
Township Road and Bridge purposes vary. Parts of Shields Township in Lake Forest lie in the Lake Bluff Park District. All of Moraine Township is in Lake Forest and
parts of Shields and West Deerfield Townships in Lake Forest lie in the North Shore Sanitary District.
* Excludes rates for the Special Service Areas
* Includes the City's component unit, Lake Forest Library
** Parks and Playgrounds combined in 2013
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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 16,646,512$ 1 0.66%23,152,678$ 1 0.80%
Abbot Laboratories 14,228,372 2 0.56%
Lake Forest Place LLC 12,809,495 3 0.51%
Pactiv Corporation 9,709,113 4 0.38%
Trustmark Insurance Co 8,273,651 5 0.33%7,917,041 6 0.27%
Northwestern Lake Forest Hospital 7,568,928 6 0.30%7,565,154 7 0.26%
Lake Forest Landmark Co. LLC 7,257,981 7 0.29%
Lake Forest Investments 6,162,364 8 0.24%
Lake Forest Landmark II 5,782,755 9 0.23%8,068,615 5 0.28%
Riggs & Co A Division of Riggs Bank N A 5,706,096 10 0.23%
The Presbyterian Home 18,981,566 2 0.66%
CBIZ Property Tax Solutions 10,857,731 4 0.38%
Lake Products, Inc 13,258,521 3 0.46%
James Campbell Company, LLC 6,894,806 8 0.24%
Shawgate Lake Forest, LLC 5,869,658 9 0.20%
Northern Trust Company 5,279,279 10 0.18%
94,145,267$ 3.72%107,845,049$ 3.73%
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.
2019 Column is 2018 Assessed Valuation
2010 Column is 2009 Assessed Valuation
2019 2010
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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
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 31,250,130 99.80%9,178 31,259,308 99.83%
2018 32,299,901 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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CITY OF LAKE FOREST
Tax Extensions for City Funds
Last Ten Levy Years
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General 0.405 0.446 0.483 0.544 0.580 0.590 0.619 0.603 0.600 0.617
0.054 0.059 0.064 0.070 0.074 0.076 0.074 0.070 0.070 0.071
Firefighter Pension 0.034 0.037 0.041 0.046 0.052 0.054 0.053 0.050 0.061 0.065
Police Pension 0.050 0.057 0.060 0.066 0.076 0.080 0.082 0.078 0.083 0.087
Parks and Recreation 0.140 0.152 0.164 0.178 0.191 0.194 0.196 0.187 0.184 0.188
Special Recreation 0.011 0.013 0.014 0.016 0.018 0.018 0.018 0.018 0.018 0.019
General Obligation Bond 1998 B - - - - - - - - - -
General Obligation Bond 2000 0.023 0.025 - - - - - - - -
General Obligation Bond 2001 B 0.004 0.004 - - - - - - - -
General Obligation Bond 2003 A 0.036 - - - - - - - - -
General Obligation Bond 2008 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 0.012 0.011
General Obligation Bond 2010 0.000 0.020 0.023 0.023 0.012 0.025 0.015 0.020 0.020 0.019
General Obligation Bond 2013 0.000 0.000 0.000 0.000 0.026 0.015 0.010 0.018 0.018 0.027
General Obligation Bond 2015 - - - - - - 0.008 0.009 0.010 0.009
Total tax rate 0.784 0.856 0.894 0.991 1.079 1.102 1.110 1.065 1.076 1.113
Data Source
Office of the County Clerk
The tax rate for the City's component unit, Lake Forest Library is excluded from this table.
This table excludes the tax rates for the Special Service Areas.
IMRF/Social Security
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CITY OF LAKE FOREST
Sales Tax Base and Number of Principal Payers
Taxable Sales by Category - .5% Sales Tax
Last Ten Calendar Years
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General Merchandise 8,492$ 8,460$ 36,478$ 12,219$ 9,722$ 7,005$ 7,471$ 5,072$ 4,358$ 4,215$
Food 83,567 89,338 90,613 91,999 93,952 105,771 96,009 92,936 93,838 95,457
Drinking and Eating Places 127,679 133,028 140,639 155,188 165,386 180,023 163,447 173,473 182,278 177,620
Apparel 55,300 51,968 53,727 64,317 68,135 68,291 75,606 73,785 72,540 67,069
Furniture & H.H. & Radio 42,526 38,958 10,187 37,536 38,821 39,494 36,526 32,774 28,424 29,524
Lumber, Building, Hardware 20,405 19,010 (6,528) 6,867 9,862 - - 7,537 8,238 9,633
Automobile and Filling Stations 27,399 35,443 38,209 38,900 37,025 34,895 28,267 26,735 30,895 35,146
Drugs and Miscellaneous Retail 178,470 91,397 105,512 81,022 110,554 117,262 118,740 117,224 102,558 103,843
Agriculture and All Others 88,052 94,649 97,776 110,446 121,651 105,139 129,721 116,945 105,670 66,743
Manufacturers 21,860 14,322 (4,963) - - 7,095 (3,818) - - -
Censored categories - - - - - - - - - -
Total 653,750$ 576,572$ 561,650$ 598,494$ 655,108$ 664,975$ 651,969$ 646,481$ 628,799$ 589,250$
Total Number of Payers N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
City direct sales tax rate 0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%0.50%
Data Source
Illinois Department of Revenue
Note: Blank categories have less than 4 taxpayers, therefore no data is shown to
protect the confidentiality of individual taxpayers.
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.
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CITY OF LAKE FOREST
Sales Tax Base and Number of Principal Payers
Taxable Sales by Category - 1% Sales Tax
Last Ten Calendar Years
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General Merchandise 16,984$ 17,248$ 72,955$ 24,726$ 19,656$ 14,010$ 14,930$ 11,412$ 10,496$ 10,069$
Food 562,455 570,803 579,914 585,517 593,446 673,803 591,893 564,049 550,591 535,167
Drinking and Eating Places 260,953 271,753 286,472 317,291 338,382 364,221 329,303 350,024 372,173 362,713
Apparel 110,600 103,935 107,453 128,633 136,270 136,582 151,212 147,576 145,141 134,201
Furniture & H.H. & Radio 85,052 77,915 20,373 75,071 77,642 78,988 73,061 65,571 56,848 59,046
Lumber, Building, Hardware 40,810 38,019 (13,037) 13,742 19,724 - - 15,076 16,479 19,267
Automobile and Filling Stations 109,080 150,101 138,744 146,865 241,339 178,178 133,684 139,764 141,260 131,243
Drugs and Miscellaneous Retail 546,202 322,376 371,420 400,096 433,159 430,482 414,407 431,966 399,115 381,239
Agriculture and All Others 198,803 267,227 254,225 274,807 285,401 255,189 295,974 271,061 246,697 166,637
Manufacturers 43,909 28,947 (9,729) - - 14,415 (5,107) - - -
Censored categories - - - - - - - - - -
Total 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$ 1,799,582$
Total Number of Payers 849 843 663 647 637 637 673 687 687 604
City direct sales tax rate 1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%
Data Source
Illinois Department of Revenue
Note: Blank categories have less than 4 taxpayers, therefore no data is shown to
protect the confidentiality of individual taxpayers.
The categories, Lumber, Bldg. and Hardware and General Merchandise became a censored status in the 2nd quarter of 2008.
The category of Furniture & H.H. & Radio became a censored status in the 4th quarter of 2011
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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
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%
2019 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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CITY OF LAKE FOREST
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Business-Type Activities Ratio of Total Perecentage Total
Fiscal General Installment General Total Outstanding Debt of Outstanding
Year Obligation Purchase Obligation Revenue Primary To Equalized Personal Debt Per
Ended Bonds Contracts Bonds Bonds Government Assessed Valuation*Income*Capita*
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 2.15%3.65%2,816.64
2019 32,016,478 - 19,090,324 - 51,106,802 2.02%3.42%2,637.77
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.
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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
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
2019 51,106,802 1,639,633 49,467,169 0.65%2,553.14
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.
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CITY OF LAKE FOREST
Direct and Overlapping Governmental Activities Debt
As of April 30, 2019
Percentage City of
Debt Applicable Lake Forest
Gross to the City of Share
Governmental unit Debt Lake Forest*of Debt
Lake County 184,660,000$ 9.94%18,355,204$
Lake County Community College #532 63,745,000 10.48%6,680,476
Lake County Forest Preserve District 251,750,000 9.94%25,023,950
School District #67 1,490,000 100.00%1,490,000
School District #103 6,010,000 0.01%601
High School District #115 29,390,000 79.50%23,365,050
Subtotal, overlapping debt 537,045,000 74,915,281
City of Lake Forest direct debt 32,016,478 100.00%32,016,478$
Total direct and overlapping debt 569,061,478$ 106,931,759$
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.
District Bond Principal Payments Report
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.
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CITY OF LAKE FOREST
Legal Debt Margin Information
Last Ten Fiscal Years
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Debt limit N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Total net debt applicable to limit N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Legal debt margin N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Total net debt applicable to the limit
as a percentage of debt limit N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Note: Legal debt margin from 1997-2004 was 8.625% of assessed value.
* City of Lake Forest achieved home rule status in November 2004. To date the General Assembly
has set no limits for home rule municipalities.
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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
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
2019 10,357,788 6,992,668 3,365,120 1,987,000 580,023 1.31
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
Waterworks and Sewerage and Golf Course Bonds
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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
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%
2019 *19,375 (A)2,526,924,079 130,639 1,493,657,500 77,092 3.7%
(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
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CITY OF LAKE FOREST
Principal Employers
Current Year and Nine Years Ago
% of % of
Total City Total City
Employer Employees Rank Population Employees Rank Population
Northwest Lake Forest Hospital 1,510 1 7.79%1,760 1 8.15%
Hospira Inc.- 1,400 2 6.48%
Pfizer **2
Abbott 779 3 4.02%
Trustmark Insurance Company 750 4 3.87%721 4 3.34%
TAP Pharmaceutical Products 804 3 3.72%
Lake Forest College excludes student employees 439 5 2.27%514 5 2.38%
Pactiv Corporation 388 6 2.00%464 6 2.15%
Lake Forest Elem. S.D. No. 67 303 7 1.56%357 7 1.65%
Packaging Corporation of America 298 9 1.54%
Lake Forest H.S. District 115 teacher, support staff 296 8 1.53%354 8 1.40%
City of Lake Forest 210 10 1.08%249 10 1.15%
Brunswick Corporation Packaging Corp - 0.00%308 9 1.43%
11977 6240
Data Source
City staff contacted companies via mail.
** No response received
2019 2010
224
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CITY OF LAKE FOREST
Full-Time Equivalent Employees
Last Ten Fiscal Years
Function/Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General Government
Administration 29 26 25 25 25.0 25.0 25.0 25.4 23.5 23.75
Community Development 15 12.5 12.5 13.0 13.0 13.0 13.0 13.0 13.0 13.0
Public Safety
Fire Protection
Firefighters 36 34 33 33 33 33 33 33 32 32
Administrative 2.5 2.5 2.5 2.0 2.0 2.0 2.0 2.0 2.0 2.0
Police
Officers 41.5 40 40 40 40 40 40 40 40 40
Civilians 18.5 17.5 18.0 18.0 18.0 18.0 8.0 9.0 7.0 7.0
Public Works
Public Works Administration 5 5 4 4 4 4 4 4 4 4
Building Maintenance 6 6 6 6 7 7 7 7 7 7
Engineering 7 6 5 5 5 5 5 5 5 5
Streets 8 8 7 7.5 7.5 7.5 7.5 8.0 8.0 8.0
Sanitation 12 12 12 11.5 10.5 10.5 10.5 10.0 10.0 10.0
Forestry 9 0 0 0 0 0 0 0 0 0
Fleet (vehicle) Maintenance 7 6 6 6 6 6 6 6 6 6
Water
Water Plant 9 8 7 7 6.5 6.5 6.5 6.5 6.5 6.5
Water and Sewer 10 10 10 10 8.5 8.5 8.5 8.5 8.5 8.5
Parks 7.25 16.4 15.4 15.4 15.4 15.4 15.4 15.0 15.0 15.0
Recreation 17.5 17.4 15.4 15.4 15.4 15.4 15.4 16.0 16.0 16.0
Golf Course 3.25 3.2 3.2 2.2 2.2 2.2 2.2 0.0 0.0 0.0
Cemetery 2 2 2 2 2 2 2 2 3 3
Senior Resources 3 3 3 3 3 3 3 3 3 3
Sub - total City 248.5 235.5 227 226 224 224 214 213.4 209.5 209.75
Library 27.24 29.6 27.9 27.8 28.2 28.2 29.2 30.5 30.5 31.0
Total all 275.74 265.1 254.9 253.8 252.2 252.2 243.2 243.9 240 240.75
Data Source
City Departments and employee totals as of April 30th
Full-Time-Equivalent Budgeted Employees as of April 30
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CITY OF LAKE FOREST
Operating Indicators
Last Ten Fiscal Years
Function/Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General Government
City Clerk
Real Estate Transfer Tax (1)
Number of Transactions 261 293 297 382 440 394 355 361 425 418
Rebates Issued 30 37 37 40 67 40 44 37 40 45
Birth Certificates Issued 2,751 1,940 2,821 2,675 2,250 2,556 2,575 2,474 2,807 2,759
Passports Issued (2)108 48 29 0 0 0 0 0 0 0
Community Development
Building permits issued 2,610 3072 3451 3197 3418 3667 3855 3632 3753 4275
Residential construction 4 7 11 7 13 20 27 21 9 13
Commercial construction 1 0 1 2 1 1 1 1 4 0
Building inspections conducted 8,060 8392 8645 8925 8651 9657 11009 11707 10798 11214
Public Safety
Fire protection
I.S.O. rating 4 4 4 4 4 4 4 3 3 3
Number of calls answered
EMS 1,041 1,211 1,607 1,726 1,574 1,785 1,712 1,923 1,909 1,839
Fire 1,233 1,177 1,734 1,403 1,497 1,503 1,367 1,385 1,448 1,450
Police (calendar year)
Non traffic arrests 424 385 335 237 191 89 166 129 76 157
Parking violations 8,472 8,757 7,114 7,013 5,979 5,250 3,907 5,396 4,325 6,891
Traffic violations 3,190 2,997 2,028 2,220 1,877 1,741 1,985 1,718 949 1,909
Public Works
Streets
Street resurfacing (miles) (calender year)5.76 6.57 7.09 5.92 5.00 5.50 2.40 3.28 2.63 2.20
Number of snow events
Salting 14 15 14 23 27 21 24 15 10 9
Plowing 15 20 12 12 21 20 10 5 10 9
Inches of snow 56 60 21 36 48 50 24 22 45 46
Sanitation
Refuse collection customers 6,361 6,471 6,471 6,472 6,462 6,654 6,295 6,467 6,467 6,484
Parks and Recreation (3)
Fitness
Number of programs 349 334 322 264 336 181 346 215 200 257
Units of participation 1,355 1,393 1,196 1,060 1,587 1,216 1,271 1,473 1,430 1,446
Athletics
Number of programs 278 157 309 283 270 341 168 275 237 466
Units of Participation 3,148 2,416 2,932 2,704 2,524 2,282 1,348 2,006 2,026 1,931
Lakefront, Early Childhood Education
and Lifetime Activities
Number of programs 306 420 395 319 294 126 130 176 161 228
Units of participation 1,402 1,344 1,424 1,576 1,380 752 1,393 1,221 1,385 1,679
Cultural Arts/Special Events
Number of programs 292 320 270 306 286 87 147 286 246 31
Units of participation 2,274 2,262 2,008 1,972 1,999 1,329 1,579 4,133 4,743 5,064
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CITY OF LAKE FOREST
Operating Indicators (Continued)
Last Ten Fiscal Years
Function/Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Wildlife Discovery Center, Ridge Teams Course
and Adventure
Number of programs 10 124 104 37 47 20 20 26 34 31
Units of participation 772 627 582 301 360 2263 2802 3685 2148 2233
Developed parks and recreation areas 10 10 10 10 10 10 11 11 11 10
Developed park acreage 395.5 415.0 404 404 404 404 405 405 405 344
Sites with playgrounds 8 8 8 9 9 9 9 9 9 9
Sites with baseball diamonds 7 7 8 8 8 8 8 8 8 8
Sites with soccer fields 7 7 7 7 7 7 7 7 7 7
Sites with basketball standards 4 5 5 5 5 5 5 5 5 5
Sites with tennis courts 6 6 6 6 6 6 6 6 6 6
Deer Path Golf Course
Size 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes
Rounds of Play 35,079 32,664 31,949 30,321 29,435 27,956 29,445 27,101 24,631 26,184
Daily fee 15,839 15,102 14,466 13,646 17,449 17,646 20,478 19,755 18,660 21,172
Seasonal 19,240 17,564 17,483 16,675 11,986 10,310 8,967 7,346 5,971 5,012
Water
New Connections (tap-ons)16 19 22 20 28 33 66 30 23 29
Meters in operation 6,774 6,761 6,755 6,754 6,751 6,764 6,810 6,854 6,854 6,840
Meters connected to sewerage system 6,570 6,570 6,583 6,584 6,587 6,577 6,645 6,718 6,778 6,766
Average daily consumption (MGD)3.611 3.669 3.759 4.202 3652.000 3,250 3,162 3,499 3,550 3,430
Peak daily consumption (MGD)9.389 8.982 11.805 10.298 8.611 7.345 8268.000 8,315 8,926 7,247
Rated daily pumping capacity (MGD)14 14 14 14 14 14 14 14 14 14
Total gallons pumped during fiscal year
(in millions)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 1,252.0
Municipal paid parking facilities
Long- term parking spaces
Miscellaneous lots 813 813 813 813 813 813 813 813 813 813
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 spaces 341 341 341 341 341 341 341 341 341 341
Component Unit
Library services
Books and non print materials 142,654 145,496 145,539 147,330 148,318 146,214 146,153 221,568 248,598 147,024
Registered borrowers 15,145 15,645 16,200 15,160 15,403 15,440 15,460 15,518 13,588 13,946
Fiscal yearbooks, items
or materials circulation 488,056 465,927 485,450 457,632 450,876 410,852 383,561 376,144 551,232 366,128
Data Source
City departments
(1) Collection of real estate transfer tax began in July 2006 (FY2007).
(2) The City began to issue passports in FY2003 and stopped in FY2012.
(3) a. Fitness data does not include Fitness Center memberships.
b. Units of participation may include an individual participant more than once.
N/A equals data not available
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CITY OF LAKE FOREST
Capital Asset Statistics
Last Ten Fiscal Years
Function/Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Public Safety
Police
Stations 1 1 1 1 1 1 1 1 1 1
Vehicles 23 23 23 25 23 23 21 24 24 23
Fire protection
Stations 2 2 2 2 2 2 2 2 2 2
Vehicles 14 14 14 14 17 15 17 17 15 18
Public Works
Bridges
Vehicle 14 14 14 14 14 14 14 14 14 14
Pedestrian 11 12 12 12 12 12 12 12 12 13
Streets
Streets (centerline miles)119.00 119.00 119.00 119.00 119.24 119.24 119.24 119.24 119.24 119.24
Streetlights
Gas 438 438 438 438 438 438 438 438 438 438
Electric 1,473 1,526 1,526 1,526 1,536 1,570 1,570 1,570 1,570 1,570
Storm sewer (miles)219.17 219.35 219.41 219.41 219.41 219.41 219.43 219.43 219.46 219.54
Parks and Recreation
Acreage 395.5 415.0 404 404 404 404 405 405 405 344
Water
Water mains (miles)165.25 165.25 165.25 165.25 165.79 166.44 166.44 166.89 167.68 167.68
Fire hydrants 1,362 1,362 1,362 1,362 1,362 1,511 1,511 1,511 1,519 1,374
Wastewater
Sanitary sewers (miles)138.90 138.90 138.95 138.90 138.95 138.95 139.43 139.43 140.25 140.25
Data Source
City departments
N/A = data not available
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The City of Lake Forest
CITY COUNCIL
Proceedings of the Monday, October 21, 2019
City Council Meeting - City Council Chambers
CALL TO ORDER AND ROLL CALL: Honorable Mayor Pandaleon called the meeting to order at 6:56pm, and
the City Clerk Margaret Boyer called the roll of Council members.
Present : Honorable Mayor Pandaleon, Alderman Beidler, Alderman Morris, Alderman Newman, Alderman
Rummel, Alderman Preschlack, Alderman Goshgarian, Alderman Moreno and Alderman Buschmann.
Absent: none
CALL TO ORDER AND ROLL CALL
PLEDGE OF ALLEGIANCE was recited by all those present in the Chambers.
REPORTS OF CITY OFFICERS
COMMENTS BY MAYOR
Mayor Pandaleon reported on recent correspondence received regarding a certification of Human Resource
Director, DeSha Kalmar. He stated that the performance level of the Executive Staff at The City of Lake
Forest is on the leading edge.
COMMENTS BY CITY MANAGER
Mike Strong, Assistant to the City Manager, introduced Sally Swarthout, Director of Parks & Recreation. She
gave an overview of the “Nature Walk Event at Forest Park”, the “Annual Halloween Tricks ” celebrated at
the Recreation Center for 3-9 year olds, the “Annual Halloween Sailing Regatta”, and “Dinner with Santa”.
More information is available on the City’s website.
Mike Strong gave background information from Illinois 1 st Community Solar Project and presented the
Mayor with a plaque. Photos were taken.
COMMITTEE REPORTS
FINANCE COMMITTEE
1. Acknowledge Receipt of the FY2019 Treasurer’s Report
Mayor Pandaleon introduced Assistant Finance Director Diane Hall. Ms. Hall asked if there were any
additional questions, as this item was heard at the preceding Finance Committee meeting.
Mayor Pandaleon asked if there was anyone from the audience who wanted to comment. Seeing none, he
asked for a motion.
COUNCIL ACTION: Acknowledge Receipt of the FY2019 Treasurer’s Report
Alderman Morris made a motion to acknowledge receipt of the FY2019 Treasurer’s Report, seconded by
Alderman Preschlack. The following voted “Aye”: Alderman Beidler, Morris, Notz, Rummel, Preschlack,
Goshgarian, Moreno and Buschmann. The following voted “Nay”: None. 8-Ayes, 0 Nays, motion carried.
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Proceedings of the Monday, October 21, 2019
Regular City Council Meeting
OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS
Larry Crone brought up a concern for a missing stop sign on Lake Road.
Deb Fisher encouraged residents to shop, dine and think local over the holiday season and share it on social
media.
ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approval of the October 7, 2019 City Council Meeting Minutes
2. Approval of Revisions to the City Investment Policy
3. Approval of an Intergovernmental Agreement (IGA) Between The City of Lake Forest and The
Illinois Department of Healthcare and Family Services (HFS) Regarding Enhanced Rates for
Ambulance Services and Authorization to make required payments to HFS consistent with
the IGA
4. Approve an Addendum to Include New Equipment to the current HVAC Preventive
Maintenance Contract Awarded to First Point Mechanical Services, L.L.C. for an Additional
Sum of $ 7,221.50.
5. Approval of a First Amendment to the Restated Agreement Relating to the Gorton Property
6. Award of Two Year Contract for Seasonal Brochure Printing for the Recreation Department
as Approved by Park and Recreation Board
COUNCIL ACTION: Approval of the six (6) Omnibus items as presented
Mayor Pandaleon again asked members of the Council if they would like to remove any item or take it
separately. Hearing none, Mayor Pandaleon asked for a motion to approve the six (6) Omnibus items as
presented.
Alderman Rummel made a motion to approve the six (6) Omnibus items as presented, seconded by
Alderman Buschmann. The following voted “Aye”: Alderman Beidler, Morris, Notz, Rummel, Preschlack,
Goshgarian, Moreno and Buschmann. The following voted “Nay”: None. 8-Ayes, 0 Nays, motion carried.
Information such as Purpose and Action Requested, Background/Discussion, Budget/Fiscal Impact,
Recommended Action and a Staff Contact as it relates to the Omnibus items can be found on the agenda.
ORDINANCES
1. Consideration of an Ordinance Amending Chapter 40, titled “Governmental Ethics” of
the City Code (Final Reading)
City Attorney Julie Tappendorf reported that since the October 7, 2019, City Council meeting, the Legal
Committee reviewed a recommendation from the Mayor to modify the preambles of the Ordinance and
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Proceedings of the Monday, October 21, 2019
Regular City Council Meeting
definition of “relative”, which further modifies the purpose and policy subsection D, and definition of
relative.
Alderman Rummel read a statement that summarized the intention of the Legal Committee’s review which
included recommending reorganizing the ethics regulations, revising the language to make it more reader-
friendly, expanding the definitions, expanding the local conflicts of interest regulations for City officers and
employees ; and incorporating the statutory conflicts of interest into the ethics regulations, along with
streamlining the administration and enforcement provisions.
The City Council had discussion on the additional recommendations and thanked the Legal Committee,
along with members of the City Council, for all their work.
Mayor Pandaleon asked if there was anyone from the audience who wanted to comment.
JoAnn Desmond offered her opinion on the improvements made to the code.
Mayor Pandaleon again asked if there was anyone from the audience who wanted to comment.
Seeing none, he asked for a motion.
COUNCIL ACTION : Grant final reading of an Ordinance amending Chapter 40, titled “Governmental
Ethics” of the City Code
Alderman Rummel made a motion to grant final reading of an Ordinance amending Chapter 40, titled
“Governmental Ethics” of the City Code, seconded by Alderman Buschmann. The following voted “Aye”:
Alderman Beidler, Morris, Notz, Rummel, Preschlack, Goshgarian, Moreno and Buschmann. The following
voted “Nay”: None. 8-Ayes, 0 Nays, motion carried.
NEW BUSINESS
1. Approval of a Professional Services Agreement with Baxter & Woodman for Design and
Specifications of the Burr Oak Storm Sewer Project in the Amount of $189,000
Michael Thomas, Director of Public Works reviewed the background on this proposed project and the 2019
Stormwater Master Plan Update. The Burr Oak storm sewer project, along with all FY ’21 capital
improvement requests, will be considered at the November 12, 2019 capital budget meeting. Should the
Finance Committee decide to proceed with the Burr Oak storm sewer project in FY ’21 and desires
construction to be completed in calendar year 2020, a completed set of design drawings and specifications
will need to be completed and placed out to bid by early spring. Mr. Thomas stated that staff is
recom mending City Council approve a professional services agreement with Baxter & Woodman for the
design and specifications .
The City Council had discussion on project timing, pipe size, other stormwater analysis, and asked if this
approval obligates the City to complete the project. Additional discussion included 25, 50-year analytics,
current flooding, the approach of the timing of this proposed project and how this project may be funded.
Mayor Pandaleon asked if there was anyone from the audience who wanted to comment.
Seeing none, he asked for a motion.
COUNCIL ACTION: Approval of a Professional Services Agreement with Baxter & Woodman for Design
and Specifications of the Burr Oak Storm Sewer Project in the Amount of $189,000
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Proceedings of the Monday, October 21, 2019
Regular City Council Meeting
Alderman Rummel made a motion to approve a Professional Services Agreement with Baxter & Woodman
for Design and Specifications of the Burr Oak Storm Sewer Project in the Amount of $189,000, seconded by
Alderman Beidler . The following voted “Aye”: Alderman Beidler, Morris, Notz, Rummel, Preschlack,
Goshgarian, Moreno and Buschmann. The following voted “Nay”: None. 8-Ayes, 0 Nays, motion carried.
ADDITIONAL ITEMS FOR COUNCIL DISCUSSION/COMMENTS BY COUNCIL MEMBERS
ADJOURNMENT
There being no further business Mayor Pandaleon asked for a motion. Alderman Goshgarian made a motion
to adjourn, seconded by Alderman Moreno. Motion carried unanimously by voice vote at 8:03 pm.
Respectfully Submitted
Margaret Boyer, City Clerk
A video of the City Council meeting is available for viewing at the Lake Forest Library and on file in the Clerk’s
office at City Hall. You can also view it on the website by visiting www.cityoflakeforest.com. Click on I Want
To, then click on View, then choose Archived Meetings Videos.
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AMENDED 2020 City Council and Finance Committee Dates
** = This date represents a change from the traditional dates, due to holiday or other conflicts
Meeting dates highlighted in blue represent Workshops
Meeting dates BOLDED represent Finance Committee meetings (FC)
**January 6 ,2020 MUNICIPAL SERVICES BUILDING CANCELLED
**January 21, 2020 COUNCIL CHAMBERS FC 6:30- CC to immediately follow
February 3, 2020 COUNCIL CHAMBERS 6:30 City Council
**February 1 8 ,2020 COUNCIL CHAMBERS 6:30 City Council
March 2, 2020 COUNCIL CHAMBERS 6:30 City Council
**March 12, 2020 MUNICIPAL SERVICES BUILDING 5:00 Operating Budget WS
March 16, 2020 COUNCIL CHAMBERS 6:30 City Council
April 6, 2020 COUNCIL CHAMBERS 6:30 City Council
April 20, 2020 COUNCIL CHAMBERS FC 6:30- CC to immediately follow
May 4 , 2020 COUNCIL CHAMBERS 6:30 City Council
May 18, 2020 COUNCIL CHAMBERS 6:30 City Council
June 1, 2020 COUNCIL CHAMBERS 6:30 City Council
June 15, 2020 COUNCIL CHAMBERS 6:30 City Council
July 6 , 2020 MUNICIPAL SERVICES BUILDING 6:30 Workshop Meeting
July 20, 2020 COUNCIL CHAMBERS FC 6:30- CC to immediately follow
August 3, 2020 COUNCIL CHAMBERS 6:30 City Council
August 17, 2020 NO MEETING NO MEETING
**September 8, 2020 COUNCIL CHAMBERS 6:30 City Council
September 21, 2020 MUNICIPAL SERVICES BUILDING 6:30 Workshop Meeting
October 5, 2020 COUNCIL CHAMBERS 6:30 City Council
October 19, 2020 COUNCIL CHAMBERS FC 6:30- CC to immediately follow
November 2 , 2020 COUNCIL CHAMBERS 6:30 City Council
**November 9, 2020 MUNICIPAL SERVICES BUILDING 5:00 Capital Budget WS
November 16, 2020 COUNCIL CHAMBERS 6:30 City Council
December 7, 2020 COUNCIL CHAMBERS 6:30 City Council
December 21, 2020
NO MEETING NO MEETING
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PROCLAMATION
National American Indian Heritage Month
WHEREAS, the history and culture of our great notion have been significantly influenced
by American Indians and indigenous peoples; and
WHEREAS, the contributions of American Indians have enhanced the freedom, prosperity,
and greatness of America today, and
WHEREAS, their customs and traditions are respected and celebrated as part of a rich
legacy throughout the United States; and
WHEREAS, Native American Awareness Week began in 1976 and recognition was
expanded by Congress and approved by President George Bush in August
1990, designating the month of November, as National American Indian
Heritage Month; and
WHEREAS, in honor of National American Indian Heritage Month, community celebrations
as well as numerous cultural, artistic, educational, and historical activities
have been planned;
NOW THEREFORE,! George A. Pandaleon, on behalf of the Council and the Community
do hereby proclaim November as the National American Indian Heritage
Month, in, and urge all our citizens to observe this month with appropriate
programs, ceremonies and activities.
George A. Pandaleon, Mayor
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