CITY COUNCIL 2020/11/02 AgendaTHE CITY OF LAKE FOREST
CITY COUNCIL AGENDA
Monday, November 2, 2020 6:30p.m.
REMOTE ACCESS MEETING
Please be advised that all of the City Council members will be remotely attending this Council
meeting by electronic means, in compliance with the recent amendments to the Open
Meetings Act. The Mayor of the City Council has determined that it is not prudent or practical
to conduct an in-person meeting due to the COVID-19 pandemic, and that it is not feasible
to have the City Council members or members of the public physically present at the
meeting due to the pandemic disaster.
The City will be providing members of the public with various opportunities to watch or attend
this meeting, as well as provide public comment at the meeting. For example, members of
the public can participate remotely in the meeting by following the public audience link
which will provide both video and audio means to attend the meeting.
Public audience link: https://us02web.zoom.us/j/83687358064?pwd=SXluWk5TY1dScno2Mm0wcjI2ZndFUT09 Webinar ID: 836 8735 8064 Passcode: 1861 Public Comment: 847-810-3643
Honorable Mayor, George Pandaleon
James E. Morris, Alderman First Ward Jim Preschlack, Alderman Third Ward
Jennifer Karras, Alderman First Ward Ara Goshgarian, Alderman Third Ward
Melanie Rummel, Alderman Second Ward Raymond Buschmann, Alderman Fourth Ward
Edward U. Notz, Jr., Alderman Second Ward Eileen Looby Weber, Alderman Fourth Ward
CALL TO ORDER AND ROLL CALL 6:30pm
PLEDGE OF ALLEGIANCE
REPORTS OF CITY OFFICERS
1. COMMENTS BY MAYOR
A. Tree Lighting Update
- Sally Swarthout, Director of Parks and Recreation
2. COMMENTS BY CITY MANAGER
3. OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL .
Members of the public can provide public comment by calling into the following number
during the meeting: 847-810-3643
1
Monday, November 2, 2020 City Council Agenda
4. COMMITTEE REPORTS
FINANCE COMMITTEE
1. Determination of Non-Binding Estimate of the Amount of Revenue to be generated
from Property Taxes for the 2020 Calendar Year in Accordance with the Truth in
Taxation Statute and Establishment of a Public Hearing Date for the 2020 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 2020
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 2020 tax levy by establishing an estimated
amount from which staff can prepare a proposed levy ordinance.
The 2020 property tax levy estimate, as considered by the Finance Committee on October 19,
is as follows:
Levy 2019 Extended 2020 Levy Estimate % Increase (Decr.)
Aggregate Levy $ 31,895,637 $ 33,234,214 4.20%
Debt Service Levy 1,828,011 1,829,087 .06%
TOTAL LEVY $ 33,723,648 $ 35,063,301 3.97%
The increase in the aggregate levy is comprised primarily of the following:
• 2.30% overall increase in compliance with the tax cap applicable to 2020 levies under
the Property Tax Extension Limitation Law (PTELL),
• an increase due to new construction as estimated by the Lake County Assessor’s Office,
• an increase in funding requirements for police and fire pension as established by a
4/30/20 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.
A discussion regarding the 2020 tax levy is scheduled for the November 9 Finance Committee
budget workshop. The tax levy ordinance will be considered by the City Council on November
16 and again on December 7, 2020.
PROJECT REVIEW/RECOMMENDATIONS:
2
Monday, November 2, 2020 City Council Agenda
Reviewed Date Comments
Finance Committee 10/19/20 Approval of 2020 Tax Levy Estimate
City Council 8/3/20 Approval of revised Pension Funding Policy
COUNCIL ACTION: Determination of a Non-Binding Estimate of the Amount of Revenue to be
generated from Property Taxes for the 2020 Calendar Year and establishment of December 7,
2020 as a public hearing date (if required) in Accordance with the Truth in Taxation Statute.
AUDIT COMMITTEE REPORT
1. Audit Committee Report and Presentation of the Fiscal Year 2020 Comprehensive
Annual Financial Report
PRESENTED BY: Vincent Sparrow, Audit Committee Chairman
STAFF CONTACT: Diane Hall, Assistant Finance Director (847-810-3614)
PURPOSE AND ACTION REQUESTED: Staff requests receipt of the audit report for the fiscal year
ended April 30, 2020.
BACKGROUND/DISCUSSION: The Comprehensive Annual Financial Report (CAFR) for the fiscal
year ended April 30, 2020 is provided beginning on page13. 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 2020 financial statements.
The City has been awarded the Certificate of Achievement for Excellence in Financial
Reporting from the Government Finance Officers Association for forty-one (41) 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 2020 and highlights of those meetings as well as the
audit report will be presented this evening by Audit Committee Chairman Vince Sparrow.
COUNCIL ACTION: Receipt of the audit report for the fiscal year ended April 30, 2020.
5. ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approve the Extension of the Mayor’s Declaration of a Local State of Emergency
until the next City Council Meeting
STAFF CONTACT, Jason Wicha, City Manager
PURPOSE AND ACTION REQUESTED: It is requested that the City Council extend the Declaration
to the next City Council meeting.
3
Monday, November 2, 2020 City Council Agenda
BACKGROUND/DISCUSSION: Over the past month, the U.S. Government and the State of
Illinois have issued multiple orders declaring a state of emergency over the country and the
State of Illinois in order to address the impact from the global pandemic from COVID-19. In
order to address the impact this pandemic has had on the City of Lake Forest, Mayor
Pandaleon exercised his authority to issue a Declaration of a Local State of Emergency on
Saturday, April 4, 2020. At the April 6, 2020 City Council meeting, the City Council extended
the Declaration to the next City Council meeting which was October 19, 2020.
In order to ensure that the emergency powers authorized by the local declaration remain in
effect where necessary, the Mayor is asking the City Council to further extend the Declaration
of a Local State of Emergency until the next City Council meeting that takes place after the
November 2, 2020.
REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
City Council 10/19/2020 City Council Approved the Mayors Declaration until
the next City Council Meeting
City Council 10/5/2020 City Council Approved the Mayors Declaration until
the next City Council Meeting
City Council 9/8/2020 City Council Approved the Mayors Declaration until
the next City Council Meeting
City Council 8/3/2020 City Council Approved the Mayors Declaration until
the next City Council Meeting
City Council 7/20/2020 City Council Approved the Mayors Declaration until
the next City Council Meeting
City Council 6/15/2020 City Council Approved the Mayors Declaration until
the next City Council Meeting
City Council 6/1/2020 City Council Approved the Mayors Declaration until
the next City Council Meeting
City Council 5/18/2020 City Council Approved the Mayors Declaration until
the next City Council Meeting
City Council
5/4/2020 City Council Approved the Mayors Declaration until
the next City Council Meeting
City Council 4/20/2020 City Council Approved the Mayors Declaration until
the next City Council Meeting
City Council 4/6/2020 City Council Approved the Mayors Declaration until
the next City Council Meeting
4/4/2020 Mayor Pandaleon exercised his authority to issue a
Declaration of a Local State of Emergency
BUDGET/FISCAL IMPACT: N/A
COUNCIL ACTION: Approve the extension of the Mayor’s Declaration of a Local State of
Emergency until the next City Council Meeting
2. Approval of the October 19, 2020 City Council Meeting Minutes
4
Monday, November 2, 2020 City Council Agenda
A copy of the minutes can be found beginning on page 217
COUNCIL ACTION: Approval of the October 19, 2020 City Council Meeting Minutes.
3. Approval of the Check Register for the Period of September 26 to October 23,
2020
STAFF CONTACT: Elizabeth Holleb, Finance Director (847-810-3612)
BACKGROUND/DISCUSSION: City Code Section 38.02 sets forth payment procedures of the
City. The Director of Finance is to prepare a monthly summary of all warrants to be drawn on
the City treasury for the payment of all sums due from the City (including all warrants relating
to payroll and invoice payments) by fund and shall prepare a detailed list of invoice
payments which denotes the person to whom the warrant is payable. The warrant list detail
of invoice payments shall be presented for review to the Chairperson of the City Council
Finance Committee for review and recommendation. All items on the warrant list detail
recommended for payment by the Finance Committee Chairperson shall be presented in
summary form to the City Council for approval or ratification. Any member of the City
Council shall, upon request to the City Manager or Director of Finance, receive a copy of the
warrant list detail as recommended by the Finance Committee Chairperson. The City
Council may approve the warrant list as so recommended by the Finance Committee
Chairperson by a concurrence of the majority of the City Council as recorded through a roll
call vote.
The Council action requested is to ratify the payments as summarized below. The associated
payroll and invoice payments have been released during the check register period noted.
Following is the summary of warrants as recommended by the Finance Committee
Chairperson:
Included in the “All other Funds” subtotal is $137,927 special recreation inclusionary services,
$231,515 in Water Capital Fund expenses and $332,362 in Medical/Dental claims paid by the
plan administrator.
Fund Invoice Payroll Total
101 General 525,327 1,572,211 2,097,539
501 Water & Sewer 84,264 196,427 280,691
220 Parks & Recreation 108,646 422,400 531,046
311 Capital Improvements 365,431 0 365,431
202 Motor Fuel Tax 0 0 0
230 Cemetery 14,780 32,836 47,617
210 Senior Resources 33,740 25,181 58,921
510 Deerpath Golf Course 2,122 2,986 5,108
601 Fleet 75,329 63,493 138,823
416 - 433 Debt Funds 750 0 750
248 Housing Trust 0 0 0
201 Park & Public Land 136,232 0 136,232
All other Funds 833,203 169,889 1,003,092
$2,179,826 $2,485,424 $4,665,249
Check Register for September 26 - October 23, 2020
5
Monday, November 2, 2020 City Council Agenda
COUNCIL ACTION: Approval of the Check Register for the Period of September 26 to October
23, 2020
4. Approval of the Fourth and Fifth Year of Contract with American Printing
Technologies (APT) for Vehicle, Pet and Parking Licenses/Permits Services
STAFF CONTACT: Diane Hall, Assistant Finance Director 847-810-3614
PURPOSE AND ACTION REQUESTED: Staff requests City Council approve the fourth and fifth
year of the contract for processing of Vehicle, Pet and Parking Licenses/Permits.
BACKGROUND/DISCUSSION: In November 2017, City Council approved a contract for one
year for the processing of the City’s vehicle licenses, pet licenses and parking permits based
upon a Request for Proposals (RFP) process conducted by the Finance Department.
Approval for years 2 and 3 was granted in February 2019. Staff is requesting approval for
years 4 and 5 at this time. For years 1-3, these services were provided jointly by Direct
Response Resource and American Printing Technologies (APT). In January 2021, all processes
will move under APT to streamline services under one vendor. APT has requested a 3%
increase in printing costs for the final two years of the contract with an additional $1,500 for
database preparation services for the initial mailing. In addition, staff has contacted
municipalities utilizing an alternate vendor that provides the same services to inquire if their
processes have been revised to incorporate elements of the City’s original RFP. At this time,
the alternate services have not been added.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
City Council 11/06/17 City Council approved contract with Direct Response
Resource
City Council 3/19/18
City Council approved modification to the agreement
with Direct Response Resource to assign a portion of
the contract to American Printing Technologies
City Council 2/19/19
City Council approved years 2 and 3 of the contract
with Direct Response and assignment of a portion of
the contract to American Printing Technologies.
BUDGET/FISCAL IMPACT:
Has competitive pricing been obtained for proposed goods/services? Yes. An RFP process
was completed in November 2017.
FY2021 Funding Source Amount
Budgeted
Amount
Requested
Budgeted?
Y/N
101-1314-435.35-10
101-1314-460.60-13
$37,000
$8,500
$35,700
$8,800 Y
FY2022 Funding Source Amount
Budgeted
Amount
Requested
Budgeted?
Y/N
6
Monday, November 2, 2020 City Council Agenda
101-1314-435.35-10
101-1314-460.60-13
$37,000
$8,500
$35,700
$8,800 Y
Payment to American Printing Technologies for the processing of the City’s vehicle, pet and
parking licenses/permits not to exceed $44,500 for FY2021 and $44,500 for FY2022
COUNCIL ACTION: Approval of the Fourth and Fifth Year of Contract with American Printing
Technologies for Vehicle, Pet and Parking Licenses/Permits services
5. Approval of a Memorandum of Understanding Between The City of Lake Forest
and Lake County 211 Program to Enhance Information Resources in the Event of
Natural Disasters.
STAFF CONTACT: Pete Siebert, Fire Chief (810-3864)
PURPOSE AND ACTION REQUESTED: The Memorandum of Understanding (MOU) sets forth the
terms and understanding between United Way of Lake County 211 Program (211) and the
City of Lake Forest to develop a mutually beneficial partnership to ensure that 211 is ready to
quickly provide relevant information and referrals in the event of a disaster. For the purpose of
this MOU, disaster is defined as any weather or manmade event causing major disruption to
daily life in Lake County. Additional background information and the MOU can be found
beginning on page 220.
BACKGROUND/DISCUSSION: 211 serves communities during and after events such as
inclement weather relative to our region (tornados, floods, heat and cold emergencies, etc.),
social unrest, health emergencies, fire emergencies and more. 211 reinforces the messages
emergency officials need to communicate to the public, such as the location of evacuation
centers, road closures, safety instructions, social services to assist disaster victims, and more. In
preparation for future emergencies, we are actively building relationships with emergency
service officials to encourage the inclusion of 211 in local emergency response plans. The
partnership is free and can enhance our community's ability to communicate with its
residents during any emergency.
• 211 provides an easily-accessible channel for delivering information to the public
regarding an emergency or disaster.
• 211 refers callers to authoritative information about the emergency, including the
location of emergency shelters, where to get basic supplies, information about
locating loved ones, and how to donate goods or volunteer.
• 211 helps to alleviate the number of non-emergency calls made to 911 and other
municipal phone lines. In addition to its public inquiry role, 211 also has an extensive
database of resources that includes emergency and everyday programs and services
that support residents during the event, and long into the recovery process. The
database is quickly expandable to include disaster resources and emerging
information.
• 211 collects information about callers and their needs, including service gaps that
exist, or that emerge during an event. This information can be shared in real time with
emergency officials to support their work on the ground.
7
Monday, November 2, 2020 City Council Agenda
BUDGET/FISCAL IMPACT: There is no budgetary impact to the City of Lake Forest at this time.
The Lake County 211 Program is financially supported by the United Way and donations.
COUNCIL ACTION: Approval of a Memorandum of Understanding Between The City of Lake
Forest and Lake County 211Program to Enhance Information Resources in the Event of
Natural Disasters
6.Award of contract with Advanced Tree Care, for an amount not to exceed
$42,000, as part of the MPI Tree Pruning Services Joint Bid for FY2021.
STAFF CONTACT: Corey Wierema, City Forester/Forestry Supervisor
847-810-3564
PURPOSE AND ACTION REQUESTED: Staff is requesting City Council approval for the City of
Lake Forest to join the Municipal Partnership Initiative (MPI) Tree Pruning contract, and enter
into a contract with Advance Tree Care Inc.
BACKGROUND/DISCUSSION: Tree pruning is one of the most important components in
maintaining a healthy urban forest. Pruning removes dead and/or competing branches to
encourage healthy new growth, maturation and removes and reduces weak branches that
can become a safety hazard. The process maximizes a tree’s value and maintains numerous
environmental and community benefits.
City staff has previously briefed the City Council on MPI, a program that takes advantage of
economies of scale for securing low bid prices among neighboring municipalities which bid
similar projects each year.
The City plans to contractually prune approximately 1,200 trees under this contract for FY2021.
This work will extend the functional lifespan of the City’s trees and delay long-term expenses
associated with the removal and replacement of unhealthy trees.
BUDGET/FISCAL IMPACT: The MPI Tree Pruning contract has been in place since 2015 and has
been extended to the 2020/2021 pruning season. By joining the MPI, the City will save an
estimated $3,000 to $4,000 per year on the necessary tree pruning. If awarded, work on this
project is expected to be completed in one month. City Forestry staff will provide daily
oversight and quality control.
For the FY2021 MPI Tree Pruning Contract, five bids were received and Advanced Tree Care
provided the lowest proposed cost.
Has competitive pricing been obtained for proposed goods/services? Yes
FY2021 Funding Source Amount
Budgeted
Amount
Requested
Budgeted?
Y/N
220-5888-435-3510 $42,000 $42,000 Y
8
Monday, November 2, 2020 City Council Agenda
COUNCIL ACTION: Award of contract with Advanced Tree Care, for an amount not to
exceed $42,000, as part of the MPI Tree Pruning Services Joint Bid for FY2021
7. Approval to Purchase a ProWall Outdoor Ice Rink System for West Park, in the
Amount of $49,810.
STAFF CONTACT: CHUCK MYERS, SUPERINTENDENT OF PARKS AND FORESTRY, 810-3565
PURPOSE AND ACTION REQUESTED: Parks & Recreation Board and staff are recommending
City Council approval to purchase a ProWall Outdoor Ice Rink System for West Park in the
amount of $49,810.
BACKGROUND/DISCUSSION: The City of Lake Forest maintains outdoor skating facilities at
West Park with a warming house, bathrooms, and a designated ice hockey rink. The City’s
Parks Section is responsible for the annual set-up and maintenance of the West Park outdoor
ice hockey rink. The hockey rink must be assembled and anchored every year before the
basin area is flooded. The current ice hockey rink is a wooden structure that was built over 25
years ago that is difficult to assemble and requires regular painting and repairs. The ProWall
Ice Rink System will be much lighter but it is constructed of a durable plastic material that will
require less annual maintenance and less time to install every year.
PROJECT REVIEW/RECOMMENDATIONS:
Reviewed Date Comments
Parks & Recreation Board 10/20/20 Recommend purchase
BUDGET/FISCAL IMPACT: On September 16, 2020 City staff released an invitation to bid for a
new ProWall Outdoor Ice Rink System. The bid opening was on September 30, 2020 and three
(3) sealed bids were received, as detailed below. Utilizing the low bid for the ProWall Outdoor
Ice Rink System, the total price for this system is $49,810.
Has competitive pricing been obtained for proposed goods/services? Yes
Company Name Dollar Amount Bid
Sports Resource Group $49,810
Sports Pros USA $56,820
Keeper Goals $58,471
Below is an estimated summary of Project budget:
FY2021 Funding Source Amount
Budgeted
Amount
Requested
Budgeted?
Y/N
201-8457-467.67-40
Parks and Public Land Fund $50,000 $49,810 Y
COUNCIL ACTION: Approval to Purchase a ProWall Outdoor Ice Rink System for West Park, in
the Amount of $49,810
9
Monday, November 2, 2020 City Council Agenda
8. Consideration of 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)
PURPOSE AND ACTION REQUESTED: The following recommendation from the Zoning Board of
Appeals is presented to the City Council for consideration as part of the Omnibus Agenda.
BACKGROUND/DISCUSSION:
1083 Griffith Road – The Zoning Board of Appeals recommended approval a variance from the
front yard setback to allow a second story addition to be constructed over an existing non-
conforming, single story element of the home to add an accessible bathroom for a family member.
Two letters were presented to the Board in support of this petition. (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 225. 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 an Ordinance Approving a Recommendation from the Building
Review Board. (First Reading, and if Desired by the City Council, Final Approval)
STAFF CONTACT: Catherine Czerniak,
Director of Community Development (810-3504)
PURPOSE AND ACTION REQUESTED: The following recommendation from the Building Review Board
is presented to the City Council for consideration as part of the Omnibus Agenda.
BACKGROUND/DISCUSSION: 1131 Turicum Road – The Building Review Board recommended
approval of a new residence on this vacant lot. This is the last remaining lot on Turicum Road, all of
the other lots are developed. This lot is adjacent to the McCormick Ravine to the south, the
property line is located on the table land, not in the ravine. All of the improvements on the lot as
now proposed are located outside of the steep slope setback, in conformance with the Code.
Because of the ongoing restoration work in the McCormick Ravine, the site plan was provided to
Lake Forest Open Lands Association (LFOLA) for review. The plans presented for final approval
reflect the clarifications and refinements requested by LFOLA. Public testimony was presented to
the Board by several neighbors regarding the siting of the house and location of the curb cut. The
Board directed refinements to the site plan and worked to balance the various interests with priority
on assuring that all improvements are set back from the ravine in conformance with the Code. The
Board acknowledged that developing the last vacant lot in an established neighborhood can be
difficult but recognized that the property is a buildable lot. (Board vote: 6 - 0, approved)
The Ordinance approving the petition as recommended by the Building Review Board, with key
exhibits attached, is included in the Council packet beginning on page 232. The Ordinance,
complete with all exhibits, is available for review in the Community Development Department.
10
Monday, November 2, 2020 City Council Agenda
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
Building Review Board’s recommendation.
COUNCIL ACTION: Approval of the nine (9) omnibus items as presented.
6. ORDINANCES
7. OLD BUSINESS
8. NEW BUSINESS
9. ADDITIONAL ITEMS FOR DISCUSSION/ COMMENTS BY COUNCIL MEMBERS
10. ADJOURNMENT
A copy of the Decision Making Parameters can be found beginning on page xx of this
packet.
Office of the City Manager October 28, 2020
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.
11
^Qtu^^
C^'NA<WA£BT-<^
^.Scie^^t^wS^'X.
§.. ^..,,.e-..^
f-l&ff"^
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.
12
Comprehensive Annual
Financial Report
City of Lake Forest,Illinois
For the Year Ended April 30,2020
13
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
OF THE
CITY OF LAKE FOREST, ILLINOIS
As of and for the Year Ended April 30, 2020
City of Lake Forest Finance Department
Elizabeth Holleb, Finance Director
Diane Hall, Assistant Finance Director
14
CITY OF LAKE FOREST
TABLE OF CONTENTS
As of and for the Year Ended April 30, 2020
Page(s)
INTRODUCTORY SECTION
Transmittal Letter i - vii
Certificate of Achievement for Excellence in Financial Reporting viii
List of Principal Officials ix
Organizational Chart x
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 - 89
15
CITY OF LAKE FOREST
TABLE OF CONTENTS (cont.)
As of and for the Year Ended April 30, 2020
Page(s)
REQUIRED SUPPLEMENTARY INFORMATION
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget
and Actual - General Fund 90
Special Revenue Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget
and Actual - Parks and Recreation Fund 91
Historical Pension Information
Illinois Municipal Retirement Fund - Schedule of Changes in the City's Net
Pension Liability and Related Ratios 92 - 95
Illinois Municipal Retirement Fund - Schedule of Employer Contributions 96 - 99
Police Pension Fund - Schedule of Changes in the City's Net Pension Liability
and Related Ratios 100
Police Pension Fund - Schedule of Employer Contributions 101 - 102
Police Pension Fund - Schedule of Investment Returns 103
Firefighters' Pension Fund - Schedule of Changes in the City's Net Pension
Liability and Related Ratios 104
Firefighters' Pension Fund - Schedule of Employer Contributions 105 - 106
Firefighters' Pension Fund - Schedule of Investment Returns 107
Other Postemployment Benefits Plan - Schedule of Changes in the Total OPEB
Liability and Related Ratios 108
Notes to Required Supplementary Information 109
SUPPLEMENTARY INFORMATION
Governmental Funds
Combining Balance Sheet - Nonmajor Governmental Funds 110 - 111
Combining Statement of Revenues, Expenditures and Changes in Fund Balances -
Nonmajor Governmental Funds 112 - 113
Schedules of Revenues, Expenditures and Changes in Fund Balances (Deficit) -
Budget and Actual
Police Restricted Fund - Nonmajor Special Revenue Fund 114
Foreign Fire Insurance Tax Fund - Nonmajor Special Revenue Fund 115
Emergency Telephone Fund - Nonmajor Special Revenue Fund 116
Parks and Public Land Fund - Nonmajor Special Revenue Fund 117
Motor Fuel Tax Fund - Nonmajor Special Revenue Fund 118
16
CITY OF LAKE FOREST
TABLE OF CONTENTS (cont.)
As of and for the Year Ended April 30, 2020
Page(s)
SUPPLEMENTARY INFORMATION (cont.)
General Cemetery Fund - Nonmajor Special Revenue Fund 119
Senior Resources Commission Fund - Nonmajor Special Revenue Fund 120
Housing Trust Fund - Nonmajor Special Revenue Fund 121
Debt Service Fund - Nonmajor Debt Service Fund 122
Laurel/W estern Redevelopment TIF Fund - Nonmajor Capital Projects Fund 123
Capital Improvements Fund - Major Capital Projects Fund 124
Schedules of Revenues, Expenses, and Nonoperating Revenues (Expenses) -
Budget and Actual (Budgetary Basis)
Waterworks and Sewerage Fund - Major Enterprise Fund 125
Deerpath Golf Course Fund - Nonmajor Enterprise Fund 126
Combining Statement of Net Position - Internal Service Funds 127
Combining Statement of Revenues, Expenses and Changes in Net Position -
Internal Service Funds 128
Combining Statement of Cash Flows - Internal Service Funds 129
Schedules of Revenues, Expenses, and Nonoperating Revenues (Expenses) -
Budget and Actual (Budgetary Basis)
Fleet Fund - Internal Service Fund 130
Self Insurance Fund - Internal Service Fund 131
Liability Insurance Fund - Internal Service Fund 132
Combining Statement of Fiduciary Net Position - Pension Trust Funds 133
Combining Statement of Changes in Fiduciary Net Position - Pension Trust Funds 134
Statement of Changes in Fiduciary Net Position - Budget and Actual
Police Pension Fund - Pension Trust Fund 135
Firefighters' Pension Fund - Pension Trust 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
17
CITY OF LAKE FOREST
TABLE OF CONTENTS (cont.)
As of and for the Year Ended April 30, 2020
Page(s)
SUPPLEMENTARY INFORMATION (cont.)
Debt Service Requirements to Maturity - General Obligation Bonds 140 - 142
Special Service Area 25 Special Tax Bonds - 2003 Series 143
Special Service Area 26 Special Tax Bonds - 2003 Series 144
Special Service Area 29 Special Tax Bonds - 2004 Series 145
General Obligation Bonds - 2011 Series A 146
General Obligation Bonds - 2013 Series 147
General Obligation Bonds - 2015 Series 148
General Obligation Bonds - 2017 Series 149
General Obligation Bonds - 2019 Series 150
Combining Balance Sheet - Debt Service Fund 151 - 152
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balance -
Debt Service Fund 153 - 154
STATISTICAL SECTION
Net Position by Component - Last Ten Fiscal Years 155
Change in Net Position - Last Ten Fiscal Years 156 - 157
Fund Balances of Governmental Funds - Last Ten Fiscal Years 158
Change in Fund Balances for Governmental Funds - Last Ten Fiscal Years 159
Assessed Value and Actual Value of Taxable Property - Last Ten Levy Years 160
Property Tax Rates - Direct and Overlapping Governments - Last Ten Levy Years 161
Principal Property Taxpayers - Current Year and Nine Years Ago 162
Property Tax Levies and Collections - Last Ten Levy Years 163
Tax Extensions for City Funds - Last Ten Levy Years 164
Sales Tax Base and Number of Principal Payers - Taxable Sales by Category - .5%
Sales Tax - Last Ten Calendar Years 165
Sales Tax Base and Number of Principal Payers - Taxable Sales by Category - 1%
Sales Tax - Last Ten Calendar Years 166
Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years 167
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 168
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 169
Direct and Overlapping Governmental Activities Debt 170
Legal Debt Margin Information - Last Ten Fiscal Years 171
18
CITY OF LAKE FOREST
TABLE OF CONTENTS (cont.)
As of and for the Year Ended April 30, 2020
Page(s)
STATISTICAL SECTION (cont.)
Pledged Revenue Coverage - Last Ten Fiscal Years 172
Demographic and Economic Information - Last Ten Fiscal Years 173
Principal Employers - Current Year and Nine Years Ago 174
Full-Time Equivalent Employees - Last Ten Fiscal Years 175
Operating Indicators - Last Ten Fiscal Years 176 - 177
Capital Asset Statistics - Last Ten Fiscal Years 178
19
i
October 15, 2020
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,
2020, 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 US, 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, 2020, 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, 2020, 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.
20
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, 2014-2018 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
167,404
851,900
86,244
259,900
63,575
187,200
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
21
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 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.
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 2019, the City’s annual average unemployment rate was estimated to be 3.8%,
compared to 4.1% for Lake County and 4.0% for the State of Illinois.
• The consumer confidence index is closely monitored by economists because consumer spending
accounts for 68% of the United States’ economic activity. In July 2020, the index was 92.6, down from
98.3 in June, and comparing unfavorably to the August 2019 index of 135.1. The index remains above
90, the minimum level associated with a healthy economy. An index above 100 signals growth.
As revenues declined in 2008-2010 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 73% of the General Fund operating budget, it has been necessary
to achieve cost savings through reduced personnel. In fiscal years (FY) 2004-2021, 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 was 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 FY2020 budget estimates in aggregate. Effective May 1, 2014, the City implemented
a new sanitation fee that generates $915,000 per year. This revenue is currently deposited to the General
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. Effective July 1, 2019, the City
increased the Home Rule Sales tax from .5% to 1% to fund capital improvement projects.
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. In recent years, the State has reduced income tax distributions and imposed an
administration fee of 2% on home rule sales tax collections (reduced to 1.5% for SFY19). The City Council
22
iv
and staff continue to budget conservatively and 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 through FY2020. 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.
In March 2020, the world was dramatically affected by the COVID-19 pandemic. While the General Fund
revenues were not greatly affected in FY2020 by COVID-19, other areas of the City were significantly
impacted. The City has budgeted reduced sales tax and income tax revenue for FY2021. The Police and
Fire Pension investments resulted in larger losses as of April 30, 2020. In recent months, these investments
have rebounded. The City’s Parks and Recreation programs were placed on hold in March 2020 resulting
in the cancellation of many of the spring and summer programs reducing the revenue of the fund. The
City’s golf course was shut down in March and was able to open at a limited capacity as of May 1. A revised
FY21 preliminary budget was presented to the City Council May 4, 2020 for approval, reflecting changes
based on anticipated reductions in consumer driven revenue sources and projected losses in the Parks and
Recreation and Golf Funds. The City continues to monitor revenues and expenses and to seek grant
opportunities to assist with the financial impact of the pandemic. Monthly reports are provided to the City
Council to review the financial impact of COVID 19 on the City’s finances.
Long–Term Financial Planning. The City is funding infrastructure expenditures primarily on a pay-as-
you-go basis from dedicated revenues A real estate transfer tax is imposed on residential and commercial
real estate transactions and is deposited into the Capital Improvements Fund. The transfer tax of $4.00
per $1,000 of value is levied on the buyer of the real estate. FY2020 real estate transfer tax revenue totaled
$1.3 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
23
v
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
provided an additional $300,000 in funding. The City Council approved moving the Sanitation fee to the
General Fund beginning in FY2020 to align the revenue with the Sanitation Division operating expenses.
The Capital Fund Tax Levy has been increased for the Capital Improvement Fund to account for the
Sanitation 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 fund 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, 2020,
the most recent actuarial valuation date, the funded ratio for the Police Pension Plan is 48.0% and for the
Firefighters’ Pension Plan is 64.4%.
All other employees of the City who work over 1,000 hours per year are covered by the Illinois Municipal
Retirement Fund (IMRF), a statewide pension plan. Benefit provisions and funding requirements are
established by State statutes and may only be changed by the Illinois General Assembly. Employees
participating are required to contribute 4.5% of their annual wages and the City is required to contribute the
remaining amounts necessary to fund the coverage of its employees in the plan. As of December 31, 2019,
the funded ratio for IMRF is 95.3%, 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.
24
vi
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 April 30, 2017 actuarial valuations, increasing the funding
requirement for FY2019 by a combined $800,000 and additional $190.000 in FY2020. 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.
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 FY2020, 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.
As of April 30, 2020 construction of the three apartment buildings is complete and nearly fully
occupied. The first of the two condominiums is complete with 17 units sold. Construction of the
second building has not started. Five single family homes have been sold with an additional home
under construction.
• 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. The project was completed in FY2020 at a total cost of $2.4
million.
• In April 2019, the City Council authorized $1,548,140 to replace the Old Elm Storm Sewer and
Forest Hill Water Main.
• In December 2018, the City Council authorized $525,000 for the purchase of a replacement Fire
Engine. The highly anticipated fire engine was received in FY2020.
• In December 2019, the City Council authorized the issuance of $17.7 million in General Obligation
refunding bonds, resulting in a savings of $1.2 million for the City.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence
in Financial Reporting to The City of Lake Forest for its comprehensive annual financial report for the fiscal year
ended April 30, 2019. This was the 41st consecutive year that the City of Lake Forest has achieved this
25
vii
prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily
readable and efficiently organized comprehensive annual financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is
valid for a period of one year only. We believe that our current comprehensive annual financial report continues
to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to
determine its eligibility for another certificate.
We would like to express our appreciation to all members of the Finance Department who assisted and
contributed to the preparation of this report. We would also like to thank the Mayor, members of the City Council
and the Audit Committee for their interest and support in planning and conducting the financial operations of
the City in a responsible and progressive manner.
Respectfully submitted,
Jason Wicha Elizabeth A. Holleb
City Manager Finance Director
26
&HUWLILFDWHRI
3UHVHQWHGWR
&LW\RI/DNH)RUHVW
)RULWV&RPSUHKHQVLYH$QQXDO
$SULO
([HFXWLYH'LUHFWRU&(2
)LQDQFLDO5HSRUW
IRUWKH)LVFDO<HDU(QGHG
5HSRUWLQJ
LQ)LQDQFLDO
IRU([FHOOHQFH
$FKLHYHPHQW
7H[W ,OOLQRLV
*RYHUQPHQW)LQDQFH2IILFHUV$VVRFLDWLRQ
viii 27
ix
List of Principal Officials
Year Ended April 30, 2020
LEGISLATIVE
City Council
George Pandaleon, Mayor
Prue R. Beidler Melanie Rummel
James E. Morris Ted Notz
Jim Preschlack Ara Goshgarian
Raymond P. Buschmann Michelle Moreno
AUDIT COMMITTEE
Vince Sparrow, Chairman
Tighe Magnuson
William McFadden
Dean Stieber
George Pandaleon, 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
28
Voters and Residents of The City of Lake ForestMayor and City CouncilOffice of the City ManagerCROYACommunity DevelopmentFinance / ITFireHuman ResourcesParks / RecreationPolicePublic WorksSenior CenterAPPOINTED BOARDS, COMMISSION, COMMITTEESAudit CommitteeBoard of Fire and Police CommissionersBoard of Trustees – Firefighter Pension FundBoard of Trustees – Police Pension FundBuilding Review BoardCemetery CommissionConstruction Codes CommissionCROYA BoardElawa Farm CommissionHistoric Preservation CommissionHousing Trust Fund BoardLegal CommitteeLibrary BoardParks and Recreation BoardPlan CommissionSenior Resources CommissionZoning Board of Appealsx29
Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities.
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, 2020, 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.
1 30
To the Honorable Mayor and City Council
City of Lake Forest, Illinois
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, 2020 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. 84, Fiduciary
Activities, effective May 1, 2019. 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. W e have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally accepted
in the United States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our inquiries, the
basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures do
not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of Lake Forest's basic financial statements. The supplementary information as listed in the
table of contents is presented for purposes of additional analysis and is not a required part of the basic financial
statements. Such information is the responsibility of management and was derived from and relates directly to
the underlying accounting and other records used to prepare the basic financial statements. The information has
been subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the supplementary information is fairly stated in all material respects, in relation to the
basic financial statements as a whole.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of Lake Forest's basic financial statements. The introductory section and statistical section are
presented for purposes of additional analysis and are not a required part of the basic financial statements. Such
information has not been subjected to the auditing procedures applied in the audit of the basic financial
statements, and accordingly, we do not express an opinion or provide any assurance on it.
2 31
To the Honorable Mayor and City Council
City of Lake Forest, Illinois
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 15, 2020 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 soley 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 15, 2020
3
Baker Tilly US, LLP (formerly known as Baker Tilly Virchow Krause, LLP)
32
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2020
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 and the
City’s financial statements.
Financial Highlights
• The City’s net position decreased $2.3 million for the fiscal year ending April 30, 2020 (FY20).
Governmental net position decreased $1.9 million and business-type net position decreased $.4 million.
• The governmental activities revenue decreased by $.2 million (.1%) due to increased taxes, and
increased operating grants/contributions, offset by decreases to charges for services and decreased
investment income. The expenses increased by $3.4 million (6.1%) due primarily to adjustments related
to pensions. Transfers decreased by $1 million related to a capital contribution from the Water and Sewer
Fund to the Capital Improvements Fund in FY2019.
• The business-type activities revenue decreased by $.6 million (6.3%) primarily due to a decrease in
charges for services in the Water and Sewer Fund a decrease in investment income and a decrease in
operating grants and contributions in the Golf Fund. The City’s business-type activity expenses increased
by $.4 million (4.1%) due primarily to pension adjustments and non-capitalized improvements. Transfers
decreased by $1 million as discussed above.
• The total cost of all City programs increased from $65.0 million in FY19 to $68.8 million in FY20 – an
increase of $3.8 million or 5.8% - 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 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 is focused on both the gross and net cost of various activities (including
governmental and business-type), which are supported by the government’s general taxes and other resources.
This is intended to summarize and simplify the user’s analysis of the cost of various governmental services
and/or subsidy to various business-type activities.
33
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2020
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 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 and Cemetery Trust 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 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. The flow of current financial resources will reflect debt proceeds and inter-fund transfers
as other financing sources as well as capital expenditures and debt principal payments as expenditures.
The reconciliation will eliminate these transactions and incorporate the capital assets and long-term
obligations (bonds and others) into the Governmental Activities column (in the Government-wide
statements).
Infrastructure Assets
Historically, a government’s largest group of assets (infrastructure – roads, bridges, storm sewers, etc.)
was not reported nor depreciated in governmental financial statements. Generally accepted accounting
principles now require that these assets be valued and reported within the Governmental Activities column
of the government-wide Statements. Additionally, the government must elect to either (1) depreciate these
assets over their estimated useful life or (2) develop a system of asset management designed to maintain
the service delivery potential to near perpetuity. If the government develops the asset management system
(the modified approach) which periodically (at least every third year) by category measures and
demonstrates its maintenance of locally established levels of service standards, the government may record
its cost of maintenance in lieu of depreciation. The City has chosen to depreciate assets over their useful
life. If a road project is considered maintenance – a recurring cost that does not extend the road’s original
useful life or expand its capacity – the cost of the project will be expensed. An “overlay” of a road will be
considered maintenance whereas a “rebuild” of a road will be capitalized.
34
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2020
Page 6
GOVERNMENT-WIDE STATEMENT
Statement of Net Position
The City’s combined net position decreased by $2.3 million for FY20 – from $225.7 million to $223.4 million.
The analysis following will look at net position and net expenses of governmental and business-type
activities separately. The total net position for the governmental activities decreased by $1.9 million – from
$176.6 million to $174.7 million. The business-type activities net position decreased by $.4 million – from
$49.1 million to $48.7 million. Table 1 reflects the condensed Statement of Net Position compared to FY19.
Table 2 will focus on the changes in net position of the governmental and business-type activities.
2019 2020 2019 2020 2019 2020
Current and Other Assets $101.5 $103.0 $12.7 $11.8 $114.2 $114.8
Capital Assets 196.7 195.6 58.5 55.9 255.2 251.5
Total Assets 298.2 298.6 71.2 67.7 369.4 366.3
Deferred Outflows 17.0 15.2 1.4 0.4 18.4 15.6
Long- Term Liabilities 98.7 97.1 21.5 18.0 120.2 115.1
Other Liabilities 9.4 7.3 1.8 0.8 11.2 8.1
Total Liabilities 108.1 104.4 23.3 18.8 131.4 123.2
Deferred Inflows 30.5 34.7 0.2 0.6 30.7 35.3
Net Position:
Net Investment in
Capital Assets 164.7 165.2 39.6 39.0 204.3 204.2
Restricted 26.7 27.8 0.0 0.0 26.7 27.8
Unrestricted (14.8) (18.3) 9.5 9.7 (5.3) (8.6)
Total Net Position $176.6 $174.7 $49.1 $48.7 $225.7 $223.4
Activities
Business-Type
Activities
Total Primary
Government
Table 1
Statement of Net Position
As of April 30, 2019 and 2020
(in millions)
Governmental
For more detailed information see the Statement of Net Position.
Normal Impacts
There are six basic (normal) transactions that will affect the comparability of the Statement of Net Position
summary presentation.
Net Results of Activities will impact (increase/decrease) current assets and unrestricted net position.
Borrowing for Capital will increase current assets and long-term debt.
Spending Borrowed Proceeds on New Capital will reduce current assets and increase capital assets. There
is a second impact, an increase in capital assets and an increase in related net debt which will not change
the net investment in capital assets.
Spending of Non-borrowed Current Assets on New Capital will (a) reduce current assets and increase
capital assets and (b) will reduce unrestricted net position and increase net investment in capital assets.
35
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2020
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 decrease in combined net position (which is the City’s bottom line) was the result of
the governmental activities net position decreasing by $1.9 million and the business-type activities net
position decreasing by $.4 million.
The governmental activities total assets increased by $.4 million (>.1%) while the governmental activities
total liabilities decreased by $3.7 million (3.5%). 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 decrease in total liabilities is due primarily
to decreases in unearned revenue and decreases in accounts payable. See additional information in the
Long-Term Obligations and Employees’ Retirement System sections of the Notes to Financial Statements
and the Debt Outstanding section of the MD&A.
A decrease in deferred outflows of $1.8 million related to pensions, while an increase in deferred inflows of
$4.2 million related to pensions and an increase in property taxes levied for future periods.
Net investment in capital assets increased by $.5 million (>.3%) due to depreciation and the pay down of
G.O. Bonds that funded the capital assets. Restricted net position increased $1.1 million largely due to
excess fund balance from the General Fund transferred to the Capital Improvement Fund to fund current
year capital improvements and Motor Fuel Tax increased distributions by the State, offset by decrease to
Culture and Recreation the result of spring program cancellations. Unrestricted net position increased by
$3.5 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 $49.1 million to $48.7 million.
The primary change in assets of the business-type activities was a decrease in capital assets.
Long-term liabilities decreased by $3.5 million due to scheduled maturities of debt obligations and
decreases to net pension liabilities. Net investment in capital assets decreased by $ .6 million due to bond-
funded capital improvements and unrestricted net position increased by $.2 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 $7.7 million per year and interest
expense on bonds is $.5 million.
Changes in Net Position
The City’s combined change in net position was a decrease of $2.3 million in FY20. The City’s total
revenues decreased by $.8 million, primarily driven by increased property taxes, operating grants and
contributions and intergovernmental taxes offset by decreases to charges for services and interest income.
The City’s cost of all programs increased by $3.8 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.
36
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2020
Page 8
2019 2020 2019 2020 2019 2020
REVENUE
Program Revenue
Charges for Services $13.7 $12.4 $9.3 $9.0 $23.0 $21.4
Grants and Contributions
Operating 1.0 1.5 0.2 0.0 1.2 1.5
Capital 0.5 0.5 0.5 0.5
General Revenue
Property Taxes 27.6 28.6 27.6 28.6
Other Taxes 4.8 4.7 4.8 4.7
Intergovernmental - Taxes 7.4 7.6 7.4 7.6
Interest Revenue 2.2 1.7 0.3 0.2 2.5 1.9
Other 0.0 0.0 0.3 0.3 0.3 0.3
Total Revenue 57.2 57.0 10.1 9.5 67.3 66.5
EXPENSES
Governmental Activities
General Government 13.8 13.9 13.8 13.9
Highways and Streets 9.1 8.7 9.1 8.7
Sanitation 2.6 2.7 2.6 2.7
Culture and Recreation 8.8 9.0 8.8 9.0
Public Safety 19.8 23.3 19.8 23.3
Interest 1.2 1.1 1.2 1.1
Business-Type Activities
Water and Sewer 7.8 8.2 7.8 8.2
Golf 1.9 1.9 1.9 1.9
Total Expenses 55.3 58.7 9.7 10.1 65.0 68.8
Excess before Transfers 1.9 (1.7) 0.4 (0.6) 2.3 (2.3)
Transfers In (out)0.8 (0.2) (0.8) 0.2 0.0 0.0
Change in Net Position 2.7 (1.9) (0.4) (0.4) 2.3 (2.3)
Net Position - Beginning *173.9 176.6 49.5 49.1 223.4 225.7
Net Position - Ending $176.6 $174.7 $49.1 $48.7 $225.7 $223.4
Activities
Business-Type
Activities
Total Primary
Government
Table 2
Changes in Net Position
For the Fiscal Year Ended April 30, 2019 and 2020
(in millions)
Governmental
37
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2020
Page 9
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
Property Tax
50%
Sales Tax
6%
Income Tax
4%
Utility Tax
4%
Real Estate
Transfer Tax
2%
Charges for
Services
22%Grants
4%
Other
5%
Inv Income
3%
FY2020 Governmental Activities Revenue
38
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2020
Page 10
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
General
Government
24%
Highways and
Streets
15%
Sanitation
4%Culture and
Recreation
15%
Public Safety
40%
Interest on LT Debt
2%
FY2020 Governmental Activities Expenses
39
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2020
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 73% 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, 2020, revenues from governmental activities totaled $57.0 million,
decreasing $.2 million compared to FY19. The primary changes occurred in Charges for Services (down
$1.3 million), Operating Grants and Contributions (up $.5 million), Sales Taxes (up $.9 million) and Interest
Revenue (down $.5 million). The decrease in Charges for Services was largely due to one-time permit fees
collected in FY19 and the cancellation of spring Recreation programs due to COVID-19. Sales Taxes
increase was due primarily to the rate increase from .5% to 1% and a onetime sales tax receipt of
approximately $.4 million. Investment income decreased due to falling interest rates. Property tax revenue
continues to be the City’s single largest revenue source, contributing $28.6 million (50%) 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 $38.2 million and represent 67% of the total governmental activities revenue.
40
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2020
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 2019 equalized assessed valuation decreased 2.8% compared to the prior year and totaled
$2,457,796,598. 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 3.6% over FY19 in property taxes was
generated as a result of the City Council adopting a 3.1% 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 decreased by $0.5 million, from $2.2 million to $1.7 million. The City’s strategy for
investing did not change but the City was effected by declining market conditions.
Expenses
For the fiscal year ended April 30, 2020, expenses for governmental activities totaled $58.7 million, an
increase of $3.4 million (6.1%). The increase is due in large part to pension adjustments. Increases in
personnel costs, which represent nearly 73% 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 FY20
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 decreased by $.6 million (6.3%) primarily due to an decrease
of charges for services in the Water and Sewerage Fund, a decrease in operating contributions in the Golf
Fund, as well as investment income.
Expenses
The City’s business-type activity expenses increased by $.4 million (4.1%) primarily due to increased
operating expenses in the Water and Sewerage Fund.
41
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2020
Page 13
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds
At April 30, 2020, the governmental funds (as presented on the balance sheet) reported a combined fund
balance of $56.6 million which is a $1.0 million (1.8%) increase from the beginning of the year
($55.6 million). This increase was largely driven by excess of revenues over expenditures in the General
Fund and Motor Fuel Tax Fund and decrease of revenue to the Parks and Recreation Fund. The City
Council elected to transfer from the General Fund an additional $1.5 million of the FY20 operating surplus
to the Capital Improvement Fund to provide additional funding for capital improvements and to retain a
portion of the surplus for assistance to other funds for COVID-19 related expenses in FY21. The Motor Fuel
Tax fund received additional funding from increased Motor Fuel Taxes imposed by the state. Parks and
Recreation Fund decreased primarily due to the cancelation of spring programs related to COVID-19. Of
the total fund balance of $56.6 million, $.2 million is not available for continuing City services and capital
projects, and $27.7 million is restricted in its use. The unassigned fund balance for the total of all
governmental funds is $28.7 million, which is a $.1 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 increased by $.7 million or 2.4% from FY19 (from $28.9 million
to $29.6 million). The General Fund revenues decreased by $.2 million (.1%) due primarily to higher
intergovernmental revenue offset by decreases in licenses and permits and interest revenue. The General
Fund expenditures increased by $1.6 million (5.1 %) due to personnel costs. The excess of revenues over
expenditures (before transfers) for FY20 of $4.9 million was $1.8 million less than FY19 $6.7 million. The
other financing sources (uses) for FY20 of $4.3 million was significantly lower than FY19 $7 million due to
one-time revenues being transferred to other funds for capital improvements.
Property taxes decreased $.3 million due to moving $.9 million to the Capital Improvement Fund, while
other taxes decreased $.9 million due to recording home rule sales tax in the Debt Service Fund. 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
2018 levy extension (FY20 revenue) allowed for a 3.1% increase as well as new equalized assessed
valuation growth.
General Fund expenditures increased overall due to personnel cost increases. General government
remained constant, highways and streets decreased 8.7% (personnel; snow and ice control), sanitation
increased 4.0%, and public safety increased 10.3%.
42
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2020
Page 14
Original Final
General Fund Budget Budget Actual
Revenues:
Taxes $21.6 $21.6 $21.3
Intergovernmental 6.0 6.0 6.5
Other 9.0 9.0 10.0
Total 36.6 36.6 37.8
Expenditures and Transfers:
Expenditures 37.0 37.3 32.9
Transfers (Net)2.2 2.7 4.3
Total 39.2 40.0 37.2
Change in Fund Balance ($2.6)($3.4) $0.6
Table 3
General Fund Budgetary Highlights
(in millions)
Actual General Fund revenues were higher than budgeted revenues by $1.2 million during FY20. The
primary variance resulted from sales tax, building permits and ambulance fees exceeding projections.
Actual General Fund expenditures and transfers were lower than the final budget by $2.8 million. It is the
City’s policy to add 10%, which is $3.6 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
FY20. Additional information can be found on the schedule of revenues, expenditures and changes in fund
balance – budget and actual.
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 $.7 million, from
$2.0 million to $1.3 million. The Parks and Recreation Fund revenues decreased by $.3 million due to
cancellation of spring programs as the result of COVID-19 and reduced investment income. Expenses
increased by .5 due to onetime capital contribution to NSSRA . Total other financing sources (uses) were
$(53,500) in FY19, but $104,490 in FY20, due to decreased transfers to the Golf Course Fund for capital
improvements.
The Capital Improvements Fund is reported as a Major Fund for FY20 and is used to account for revenues
associated with City building and infrastructure projects. Fund balance of this fund increased by $.4 million
in FY20. Compared to FY19, revenue decreased by $.8 million due to increases in property taxes and the
addition of .5% home rule sales tax offset by decreases in real estate transfer taxes, contributions and grant
reimbursements. Total expenditures increased by $1.5 million in the capital outlay category. Transfers in
of $3.6 million for FY20 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 FY20 and is used to account for revenues used
to retire non-Enterprise Fund obligations. Fund balance for FY20 increased by $.3 million, from $1.6 million
to $1.9 million.
43
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2020
Page 15
CAPITAL ASSETS
2019 2020 2019 2020 2019 2020
Land and Improvements $38.1 $40.2 $0.5 $0.5 $38.6 $40.7
Infrastructure - Land 66.7 66.7 66.7 66.7
Construction in Progress 1.3 0.1 0.0 0.0 1.3 0.1
Infrastructure 53.6 53.1 53.6 53.1
Buildings 17.6 17.0 10.4 9.4 28.0 26.4
Improvements 15.5 14.4 33.2 32.3 48.7 46.7
Machinery and Equipment 3.9 4.1 1.7 1.6 5.6 5.7
Sanitary Sewers 0.0 0.0 12.7 12.1 12.7 12.1
Total $196.7 $195.6 $58.5 $55.9 $255.2 $251.5
Activities
Business-Type
Activities
Total Primary
Government
Table 4
Capital Assets at Year End - 2019 and 2020
Net of Depreciation
(in millions)
Governmental
At the end of FY20, the City had a combined total of $251.5 million invested in a broad range of capital
assets. This amount represents a net decrease (including additions and deductions) of $3.7 million. The
net decrease is attributable to a $1.1 million decrease in governmental activities and a $2.6 million decrease
in the business-type activities.
The decrease in the governmental activities was due to depreciation exceeding additions by $1.5 million.
The decrease in business-type activities was due primarily to $2.6 million of depreciation exceeding
additions.
The following reconciliation summarizes the changes in Capital Assets which are presented in detail in
Note III.
Governmental Business-Type
Activities Activities Total
Beginning Balance $196.7 $58.5 $255.2
Additions
Depreciable 6.0 0.7 6.7
Construction in Progress 0.0 0.0
Retirements
Depreciable (1.9)(0.1)(2.0)
Depreciation (5.6)(3.3)(8.9)
Retirements 0.4 0.1 0.5
Ending Balance $195.6 $55.9 $251.5
Table 5
Change in Capital Assets
(in millions)
The increase in Governmental Activities of $6.0 million and the decrease of $1.9 million was due to moving
the north beach access road project from construction in progress to a depreciable asset.
44
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED)
APRIL 30, 2020
Page 16
Debt Outstanding
The City had $45.9 million of general obligation bonds outstanding at April 30, 2020. Of this amount $22.1
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 $4,837
and $3,608 if self-supporting debt is excluded.
The City operated as a home rule community for FY20. 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 the notes to the financial statements.
As of April 30, 2020, the City’s net pension liability is $62.7 million, a decrease of $1.7 million compared to
the $64.4 million balance as of April 30, 2019. Additional information regarding the net pension liability can
be found in Note IV.
As of April 30, 2020, the City’s OPEB liability is $2.8 million, an increase of $.4 million compared to the $2.4
million balance as of April 30, 2019. Additional information regarding the OPEB liability can be found in
Note III.
Economic Factors
Unemployment levels in Lake Forest are well below the levels for Lake County and the State of Illinois. For
calendar year 2019, the City’s annual average unemployment rate was estimated to be 3.8%, compared to
4.1% for Lake County and 4.0% for the State of Illinois.
The City maintains a Aaa bond rating from Moody’s Investors Service.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, customers, investors and creditors with a general
overview of the City’s finances and to demonstrate the City’s accountability for the money it receives.
Questions concerning this report or requests for additional financial information should be directed to
Elizabeth Holleb, Finance Director, City of Lake Forest, 800 N. Field Drive, Lake Forest, IL 60045 or by
email at HollebE@cityoflakeforest.com.
45
BASIC FINANCIAL STAT EMENTS
46
CITY OF LAKE FOREST
STATEMENT OF NET POSITION
As of April 30, 2020
Primary Government Component Unit
Governmental
Activities
Business-type
Activities Totals
Lake Forest
Library
ASSETS
Cash and cash equivalents $58,220,309 $9,470,829 $67,691,138 $5,455,932
Investments 7,077,796 -7,077,796 -
Receivables (net)
Property taxes 29,307,116 -29,307,116 4,218,857
Other taxes 219,993 -219,993 5,172
Accounts 1,708,468 1,325,097 3,033,565 -
Loans 5,005 -5,005 -
Other 4,090,950 3,961 4,094,911 -
Due from other governments 1,946,969 -1,946,969 -
Internal balances (847,037)847,037 --
Inventories 430,849 82,135 512,984 -
Prepaid items 711,309 93,568 804,877 -
Due from fiduciary funds 167,340 -167,340 -
Capital Assets
Capital assets not being depreciated 106,928,647 456,342 107,384,989 238,500
Capital assets being depreciated, net of
accumulated depreciation 88,623,947 55,457,844 144,081,791 2,609,761
Total Assets 298,591,661 67,736,813 366,328,474 12,528,222
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding -1,505 1,505 -
Deferred outflows of resources related to pensions 14,896,690 383,690 15,280,380 309,155
Deferred outflows related to total OPEB liability 326,875 31,945 358,820 6,953
Total Deferred Outflows of Resources 15,223,565 417,140 15,640,705 316,108
LIABILITIES
Accounts payable 2,757,223 249,320 3,006,543 47,342
Accrued liabilities 1,979,802 108,449 2,088,251 118,271
Accrued interest payable 270,751 221,915 492,666 -
Deposits 1,031,883 -1,031,883 -
Unearned revenue 1,183,551 175,153 1,358,704 -
Due to fiduciary funds 72,180 -72,180 -
Noncurrent Liabilities
Due within one year 2,030,089 1,939,413 3,969,502 39,410
Due in more than one year 95,062,788 16,092,788 111,155,576 914,732
Total Liabilities 104,388,267 18,787,038 123,175,305 1,119,755
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to pensions 5,361,510 622,633 5,984,143 491,673
Property taxes levied for future periods 29,307,114 -29,307,114 4,218,857
Deferred charge on refunding 32,043 -32,043 -
Total Deferred Inflows of Resources 34,700,667 622,633 35,323,300 4,710,530
NET POSITION
Net investment in capital assets 165,179,598 39,052,272 204,231,870 2,765,786
Restricted for
Culture and recreation 2,528,867 -2,528,867 -
Highways and streets 1,757,894 -1,757,894 -
Public safety 979,033 -979,033 -
Cemetery purposes 8,065,569 -8,065,569 -
Affordable housing 1,209,518 -1,209,518 -
Capital projects 11,670,812 -11,670,812 -
Debt service 1,596,241 -1,596,241 -
Unrestricted (18,261,240)9,692,010 (8,569,230)4,248,259
TOTAL NET POSITION $174,726,292 $48,744,282 $223,470,574 $7,014,045
See accompanying notes to financial statements.
17 47
CITY OF LAKE FOREST
STATEMENT OF ACTIVITIES
For the Year Ended April 30, 2020
Program Revenues
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Primary Government
Governmental Activities
General government $13,865,425 $4,077,609 $600,584 $448,694
Highway and streets 8,677,958 2,183,456 714,970 -
Sanitation 2,678,876 1,040,121 --
Culture and recreation 8,977,855 2,594,119 200,109 -
Public safety 23,338,259 2,525,439 14,200 -
Interest on long-term debt 1,115,802 ---
Total Governmental Activities 58,654,175 12,420,744 1,529,863 448,694
Business-type Activities
Waterworks and Sewerage 8,168,879 7,512,450 --
Deerpath Golf Course 1,861,393 1,459,127 --
Total Business-type Activities 10,030,272 8,971,577 --
Total Primary Government $68,684,447 $21,392,321 $1,529,863 $448,694
Component Unit
Lake Forest Library $3,813,198 $37,839 $138,661 $-
General Revenues
Taxes
Property
Home rule sales
Utility
Real estate transfer
Other
Intergovernmental
Sales
Income
Telecommunication
Replacement
Other
Investment income
Gain on sale of assets
Total General Revenues
Transfers
Total General Revenues and Transfers
Change in net position
NET POSITION - Beginning of Year
NET POSITION - END OF YEAR
See accompanying notes to financial statements.
18 48
Net (Expenses) Revenues and Changes in Net Position
Primary Government Component Unit
Governmental
Activities
Business-type
Activities Totals
Lake Forest
Library
$(8,738,538)$-$(8,738,538)$-
(5,779,532)-(5,779,532)-
(1,638,755)-(1,638,755)-
(6,183,627)-(6,183,627)-
(20,798,620)-(20,798,620)-
(1,115,802)-(1,115,802)-
(44,254,874)-(44,254,874)-
-(656,429)(656,429)-
-(402,266)(402,266)-
-(1,058,695)(1,058,695)-
(44,254,874)(1,058,695)(45,313,569)-
---(3,636,698)
28,569,827 -28,569,827 4,158,792
1,035,086 -1,035,086 -
2,177,783 -2,177,783 -
1,256,265 -1,256,265 -
237,860 -237,860 -
2,597,218 -2,597,218 -
2,584,198 -2,584,198 -
993,112 -993,112 -
140,924 -140,924 39,040
1,303,992 309,870 1,613,862 -
1,664,355 175,969 1,840,324 111,476
38,500 -38,500 -
42,599,120 485,839 43,084,959 4,309,308
(198,500)198,500 --
42,400,620 684,339 43,084,959 4,309,308
(1,854,254)(374,356)(2,228,610)672,610
176,580,546 49,118,638 225,699,184 6,341,435
$174,726,292 $48,744,282 $223,470,574 $7,014,045
See accompanying notes to financial statements.
19 49
CITY OF LAKE FOREST
BALANCE SHEET
GOVERNMENTAL FUNDS
As of April 30, 2020
General
Parks and
Recreation
Capital
Improvements
Nonmajor
Governmental
Funds Totals
ASSETS
Cash and cash equivalents $30,997,596 $1,522,970 $10,821,218 $7,241,845 $50,583,629
Investments ---7,077,796 7,077,796
Receivables (net)
Property taxes 19,927,292 5,809,870 1,524,548 2,045,406 29,307,116
Other taxes 219,993 ---219,993
Accounts 1,468,439 231,405 8,624 -1,708,468
Loans 5,005 ---5,005
Other 50,000 --767,576 817,576
Due from other governments 1,349,689 6,170 443,618 147,492 1,946,969
Advances to other funds ---380,000 380,000
Due from other funds -125,000 1,123,104 -1,248,104
Due from fiduciary funds ---167,340 167,340
Inventories 45,936 450 --46,386
Prepaid items 97,767 --28,689 126,456
TOTAL ASSETS $54,161,717 $7,695,865 $13,921,112 $17,856,144 $93,634,838
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AN D FUND BALANCES
Liabilities
Accounts payable $1,367,869 $196,487 $309,129 $158,201 $2,031,686
Accrued liabilities 1,010,874 208,695 -27,128 1,246,697
Deposits 985,310 573 28,000 18,000 1,031,883
Unearned revenue 874,025 187,639 8,624 112,135 1,182,423
Due to other funds ---1,123,104 1,123,104
Due to fiduciary funds 72,180 ---72,180
Advances from other funds --380,000 -380,000
Total Liabilities 4,310,258 593,394 725,753 1,438,568 7,067,973
Deferred Inflows of Resources
Property taxes levied for a future period 19,927,292 5,809,870 1,524,547 2,045,405 29,307,114
Unavailable revenues 346,782 -354,934 1,344 703,060
Total Deferred Inflows of Resources 20,274,074 5,809,870 1,879,481 2,046,749 30,010,174
Fund Balances
Nonspendable 143,703 450 -28,689 172,842
Restricted -1,292,151 11,315,878 15,085,242 27,693,271
Unassigned 29,433,682 --(743,104)28,690,578
Total Fund Balances 29,577,385 1,292,601 11,315,878 14,370,827 56,556,691
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES, AND
FUND BALANCES $54,161,717 $7,695,865 $13,921,112 $17,856,144 $93,634,838
See accompanying notes to financial statements.
20 50
CITY OF LAKE FOREST
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
As of April 30, 2020
Total Fund Balances - Governmental Funds $56,556,691
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.195,552,594
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.703,060
Deferred outflows of resources related to pensions do not relate to current financial
resources and are not reported in the governmental funds.14,896,690
Less amount reported in internal service funds below.(113,512)
Deferred inflows of resources related to pensions do not relate to current financial
resources and are not reported in the governmental funds.(5,361,510)
Less amount reported in internal service funds below.182,866
Deferred outflows of resources related to total OPEB liability do not relate to current
financial resources and are not reported in the governmental funds.326,875
Less amount reported in internal service funds below.(9,347)
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 (29,541,957)
Compensated absences (2,210,488)
Accrued interest (270,751)
Unamortized debt premium (798,997)
Net pension liabilities (62,017,758)
Total OPEB liability (2,523,677)
Less amount reported in internal service funds below.297,268
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.(32,043)
The net position of the internal service funds are included in the governmental
activities in the Statement of Net Position.9,090,288
NET POSITION OF GOVERNMENTAL ACTIVITIES $174,726,292
See accompanying notes to financial statements.
21 51
CITY OF LAKE FOREST
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
For the Year Ended April 30, 2020
General
Parks and
Recreation
Capital
Improvements
Nonmajor
Governmental
Funds Totals
REVENUES
Taxes:
Property $18,930,909 $5,772,949 $1,734,563 $2,131,406 $28,569,827
Other taxes 2,350,852 -1,745,882 605,469 4,702,203
Intergovernmental 6,509,510 44,907 -720,185 7,274,602
Licenses and permits 2,954,115 ---2,954,115
Fines, forfeitures and penalties 271,235 -750 -271,985
Charges for services 4,796,048 2,443,544 73,068 1,436,564 8,749,224
Grants and contributions 12,028 167,244 488,335 414,476 1,082,083
Investment income 679,423 64,829 174,342 615,657 1,534,251
Miscellaneous revenues 1,301,177 13,131 43,520 2,895 1,360,723
Total Revenues 37,805,297 8,506,604 4,260,460 5,926,652 56,499,013
EXPENDITURES
Current
General government 9,860,981 -1,063,722 1,036,052 11,960,755
Highways and streets 2,303,462 -1,090,137 -3,393,599
Sanitation 2,575,451 -44,025 -2,619,476
Culture and recreation -8,652,397 82,267 663,844 9,398,508
Public safety 18,165,098 --291,110 18,456,208
Capital Outlay -689,077 5,224,078 840,838 6,753,993
Debt Service
Principal retirement ---1,730,850 1,730,850
Interest and fiscal charges ---1,202,730 1,202,730
Total Expenditures 32,904,992 9,341,474 7,504,229 5,765,424 55,516,119
Excess (deficiency) of revenues over expenditures 4,900,305 (834,870)(3,243,769)161,228 982,894
OTHER FINANCING SOURCES (USES)
Transfers in -300,490 3,593,323 733,854 4,627,667
Transfers out (4,268,104)(196,000)-(362,063)(4,826,167)
Proceeds from capital asset sales --38,500 -38,500
Refunding debt issued ---10,751,022 10,751,022
Premium on debt issued ---797,619 797,619
Payments to refunding escrow ---(11,445,875)(11,445,875)
Total Other Financing Sources (Uses)(4,268,104)104,490 3,631,823 474,557 (57,234)
Net Change in Fund Balances 632,201 (730,380)388,054 635,785 925,660
FUND BALANCES - Beginning of Year 28,945,184 2,022,981 10,927,824 13,735,042 55,631,031
FUND BALANCES - END OF YEAR $29,577,385 $1,292,601 $11,315,878 $14,370,827 $56,556,691
See accompanying notes to financial statements.
22 52
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, 2020
Net change in fund balances - total governmental funds $925,660
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of net position
the cost of these assets is capitalized and they are depreciated over their estimated useful lives
and reported as depreciation expense in the statement of activities.
Capital outlay is reported as an expenditure in the fund financial statements but is capitalized
in the government-wide financial statements 4,787,222
Depreciation is reported in the government-wide financial statements (5,622,431)
Retirement of capital assets (299,389)
Less amount reported in internal service funds below 4,107
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 330,804
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.
Debt issued (10,751,022)
Principal repaid 13,137,849
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 (19,237)
Debt premium (692,066)
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 (312,151)
Accrued interest on debt 76,068
Amortization of deferred charge on refunding (36,579)
Net pension liability 455,712
Deferred outflows of resources related to pensions (2,062,812)
Deferred inflows of resources related to pensions (2,890,076)
Deferred outflows of resources related to total OPEB liability 300,219
Total OPEB liability (304,606)
Less amount reported in internal service funds below 22,634
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 1,095,840
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $(1,854,254)
See accompanying notes to financial statements.
23 53
CITY OF LAKE FOREST
STATEMENT OF NET POSITION
PROPRIETARY FUND
As of April 30, 2020
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 $8,965,740 $505,089 $9,470,829 $7,636,680
Receivables
Accounts 1,321,754 3,343 1,325,097 -
Other 3,961 -3,961 3,273,374
Inventories -82,135 82,135 384,463
Prepaid items -93,568 93,568 584,853
Total Current Assets 10,291,455 684,135 10,975,590 11,879,370
Noncurrent Assets
Capital Assets
Capital assets not being depreciated 345,896 110,446 456,342 -
Capital assets being depreciated 115,838,689 5,477,306 121,315,995 48,047
Less: Accumulated depreciation (62,521,854)(3,336,297)(65,858,151)(48,047)
Total Noncurrent Assets 53,662,731 2,251,455 55,914,186 -
Total Assets 63,954,186 2,935,590 66,889,776 11,879,370
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 1,505 -1,505 -
Deferred outflows of resources related to
pensions 377,611 6,079 383,690 113,512
Deferred outflows related to total OPEB
liability 31,458 487 31,945 9,347
Total Deferred Outflows of Resources 410,574 6,566 417,140 122,859
See accompanying notes to financial statements.
24 54
CITY OF LAKE FOREST
STATEMENT OF NET POSITION
PROPRIETARY FUND
As of April 30, 2020
Business-type Activities - Enterprise Funds
Waterworks
and Sewerage
Nonmajor
Enterprise
Funds -
Deerpath Golf
Course Totals
Governmental
Activities -
Internal
Service Funds
LIABILITIES
Current Liabilities
Accounts payable 128,067 121,253 249,320 725,537
Accrued liabilities 91,207 17,242 108,449 733,105
Accrued interest payable 215,857 6,058 221,915 -
Unearned revenue 18,297 156,856 175,153 1,128
General obligation bonds 1,844,332 90,081 1,934,413 -
Compensated absences 4,981 19 5,000 -
Due to other funds -125,000 125,000 -
Total Current Liabilities 2,302,741 516,509 2,819,250 1,459,770
Noncurrent Liabilities
Long-Term Debt
General obligation debt payable 14,640,247 288,759 14,929,006 -
Compensated absences 253,499 3,014 256,513 31,076
Net pension liability 650,249 10,389 660,638 194,028
Total OPEB liability 242,873 3,758 246,631 72,164
Total Noncurrent Liabilities 15,786,868 305,920 16,092,788 297,268
Total Liabilities 18,089,609 822,429 18,912,038 1,757,038
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to
pensions 612,842 9,791 622,633 182,866
Total Deferred Inflows of Resources 612,842 9,791 622,633 182,866
NET POSITION
Net investment in capital assets 37,179,657 1,872,615 39,052,272 -
Unrestricted 8,482,652 237,321 8,719,973 10,062,325
TOTAL NET POSITION $45,662,309 $2,109,936 47,772,245 $10,062,325
Adjustments to reflect the consolidation of
internal service funds activities related to
enterprise funds.972,037
Net Position of Business-type Activities
reported in the government-wide statement of
net position.$48,744,282
See accompanying notes to financial statements.
25 55
CITY OF LAKE FOREST
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUND
For the Year Ended April 30, 2020
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 $7,629,656 $1,458,127 $9,087,783 $9,496,535
Connection fees 184,371 -184,371 -
Miscellaneous 8,293 1,000 9,293 -
Total Operating Revenues 7,822,320 1,459,127 9,281,447 9,496,535
OPERATING EXPENSES
General and administrative 2,528,559 650,441 3,179,000 8,431,268
Operations and maintenance 2,158,200 888,673 3,046,873 -
Depreciation and amortization 2,995,849 345,495 3,341,344 4,108
Total Operating Expenses 7,682,608 1,884,609 9,567,217 8,435,376
Operating Income (Loss)139,712 (425,482)(285,770)1,061,159
NONOPERATING REVENUES (EXPENSES)
Investment income 166,288 9,681 175,969 130,104
Interest expense (494,241)(12,433)(506,674)-
Paying agent fees (55,340)(2,915)(58,255)-
Other -6,451 6,451 -
Total Nonoperating Revenues
(Expenses)(383,293)784 (382,509)130,104
Income (Loss) Before Transfers (243,581)(424,698)(668,279)1,191,263
TRANSFERS
Transfers in 2,500 196,000 198,500 -
Total Transfers 2,500 196,000 198,500 -
Change in Net Position (241,081)(228,698)(469,779)1,191,263
NET POSITION - Beginning of Year 45,903,390 2,338,634 48,242,024 8,871,062
NET POSITION- END OF YEAR $45,662,309 $2,109,936 $47,772,245 $10,062,325
Adjustment to change in net position to reflect
the consolidation of internal service funds
activities related to enterprise funds 95,423
Change in Net Position of Business-type
Activities reported in the government-wide
statement of activities.$(374,356)
See accompanying notes to financial statements.
26 56
CITY OF LAKE FOREST
STATEMENT OF CASH FLOW S
PROPRIETARY FUNDS
For the Year Ended April 30, 2020
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 $7,924,667 $1,333,609 $9,258,276 $8,624,930
Paid to suppliers for goods and services (3,048,886)(966,086)(4,014,972)(7,885,725)
Paid to employees (2,474,841)(639,455)(3,114,296)(506,512)
Net Cash Flows From Operating
Activities 2,400,940 (271,932)2,129,008 232,693
CASH FLOWS FROM INVESTING
AC TIVITIES
Interest received 166,288 9,681 175,969 130,104
Net Cash Flows From Investing
Activities 166,288 9,681 175,969 130,104
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from (to) other funds 2,500 196,000 198,500 -
Miscellaneous -6,451 6,451 -
Net Cash Flows From Noncapital
Financing Activities 2,500 202,451 204,951 -
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Debt issued 7,146,306 386,908 7,533,214 -
Principal paid (9,056,500)(483,500)(9,540,000)-
Interest paid (518,578)(13,401)(531,979)-
Acquisition and construction of capital
assets (715,003)(14,929)(729,932)-
Other - paying agent fees (55,340)(2,915)(58,255)-
Net Cash Flows From Capital and
Related Financing Activities (3,199,115)(127,837)(3,326,952)-
Net Change in Cash and Cash
Equivalents (629,387)(187,637)(817,024)362,797
CASH AND CASH EQUIVALENTS - Beginning
of Year 9,595,127 692,726 10,287,853 7,273,883
CASH AND CASH EQUIVALENTS - END
OF YEAR $8,965,740 $505,089 $9,470,829 $7,636,680
See accompanying notes to financial statements.
27 57
CITY OF LAKE FOREST
STATEMENT OF CASH FLOW S
PROPRIETARY FUNDS
For the Year Ended April 30, 2020
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)$139,712 $(425,482)$(285,770)$1,061,159
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Flows From
Operating Activities
Depreciation 2,995,849 345,495 3,341,344 4,108
Changes in assets and liabilities
Accounts receivable 101,916 4,927 106,843 (872,733)
Inventories -(3,365)(3,365)(27,660)
Prepaid items -7,914 7,914 (32,190)
Deferred outflows related to pensions 796,235 17,476 813,711 217,183
Accounts payable (890,686)(81,962)(972,648)86,167
Accrued liabilities ---(9,920)
Accrued salaries 9,309 13,104 22,413 -
Net pension liability (1,202,707)(27,080)(1,229,787)(326,604)
Deferred inflows related to pensions 450,014 6,498 456,512 137,115
Unearned revenue 431 (130,445)(130,014)1,128
Compensated absences 1,977 1,008 2,985 (2,780)
Deferred outflows related to OPEB (28,874)(447)(29,321)(8,556)
Total OPEB liability 27,764 427 28,191 6,276
NET CASH FLOWS FROM
OPERATING ACTIVITIES $2,400,940 $(271,932)$2,129,008 $232,693
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
None
See accompanying notes to financial statements.
28 58
CITY OF LAKE FOREST
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
As of April 30, 2020
Private
Purpose Trust Pension Trusts
ASSETS
Cash $-$659,197
Money markets 7,946 737,089
Investments
U.S. Treasury obligations -13,650,700
U.S. Government agencies -3,987,998
Municipal/corporate bonds -9,148,360
Equity securities 369,919 -
Mutual funds 333,492 40,416,261
Real estate investment fund -3,824,762
Interest receivable -170,302
Prepaids -8,528
Due from primary government -72,180
Total Assets 711,357 72,675,377
LIABILITIES
Accounts payable 236 43,373
Due to primary government 167,340 -
Total Liabilities 167,576 43,373
NET POSITION
Restricted for pension benefits -72,632,004
Restricted for other purposes 543,781 -
TOTAL NET POSITION $543,781 $72,632,004
See accompanying notes to financial statements.
29 59
CITY OF LAKE FOREST
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
For the Year Ended April 30, 2020
Private
Purpose Trust
Fund
Pension Trust
Funds
AD DITIONS
Contributions
Employer $-$4,411,598
Employee -735,710
Total Contributions -5,147,308
Investment income
Interest 12,349 1,458,279
Net appreciation in fair value of investments 16,196 (155,692)
Total Investment income 28,545 1,302,587
Less investment expense -156,114
Net Investment income 28,545 1,146,473
Miscellaneous -226
Total Additions 28,545 6,294,007
DEDUCTIONS
Pension benefits and refunds -5,601,771
Other administrative expenses 40,841 96,578
Total Deductions 40,841 5,698,349
Change in Fiduciary Net Position (12,296)595,658
NET POSITION - Beginning of Year 556,077 72,036,346
NET POSITION - END OF YEAR $543,781 $72,632,004
See accompanying notes to financial statements.
30 60
CITY OF LAKE FOREST
INDEX TO NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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 45
7.Long-Term Obligations 45
8.Deferred Inflows of Resources 46
9. Equity Classifications 46
II Stewardship, Compliance, and Accountability 48
A.Budgetary Information 48
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
IV Other Information 66
A.Employees' Retirement System 66
B.Risk Management 81
C.Joint Ventures 83
D.Commitments and Contingencies 84
E.Other Postemployment Benefits 85
F.Laurel and W estern Tax Increment Financing (TIF) District 88
G.Effect of New Accounting Standards on Current-Period Financial Statements 89
See accompanying notes to financial statements.
31 61
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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 three methods: discrete presentation, blended, or fiduciary.
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.
32 62
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
A.REPORTING ENTITY (cont.)
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.
Fiduciary Component Units
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 approval of the City Council, one
pension beneficiary elected by the membership, and two police employees elected by the membership
constitute the pension board. The City and the PPERS participants are obligated to fund all PPERS costs
based upon actuarial valuations. A municipality is considered to have a financial burden if it is legally
obligated or has otherwise assumed the obligation to make contributions to the pension plan. 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. PPERS is reported as a fiduciary component
unit pension trust fund and the data for the pension is included in the government's fiduciary fund financial
statements as a pension trust fund. 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 membership; and two fire employees elected by the membership constitute the pension
board. The City and the FPERS participants are obligated to fund all FPERS costs based upon actuarial
valuations. A municipality is considered to have a financial burden if it is legally obligated or has otherwise
assumed the obligation to make contributions to the pension plan. 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. FPERS is reported as a fiduciary component unit and the data for the
pension is included in the government's fiduciary fund financial statements as a pension trust fund. No
separate annual financial report is issued for the FPERS.
33 63
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B.GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
In January 2017, the GASB issued statement No. 84 - Fiduciary Activities. This statement establishes
criteria for identifying fiduciary activities of all state and local governments for accounting and financial
reporting purposes and how those activities should be reported. This standard was implemented May 1,
2019.
In March 2018, the GASB issued statement No. 88 - Certain Disclosures Related to Debt, including Direct
Borrowings and Direct Placements. This Statement defines debt for purposes of disclosure in notes to
financial statements and establishes additional financial statement note disclosure requirements related to
debt obligations of governments, including direct borrowings and direct placements. This standard was
implemented May 1, 2019.
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.
34 64
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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.
35 65
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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
36 66
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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 and report any trust arrangement not reported
in a pension trust fund or investment trust fund under which principal and income benefit
individuals, private organizations, or other governments.
Cemetery Trust
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
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.
37 67
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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 are reported using the economic resources
measurement focus and the accrual basis of accounting, as described previously in this note.
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.
38 68
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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;
39 69
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
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.
40 70
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
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.
41 71
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
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 39%5.60%
International Equities 15%5.80%
Real Estate 10%5.00%
Cash 1%0.70%
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.
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
Cash 1.20%0.9%
US Fixed Income Taxable 38.00%1.8%
US Large Cap 46.10%6.9%
US Mid Cap 5.40%7.6%
US Small Cap 1.20%7.3%
International Equities 6.50%6.2%
Equity Hedge Assets 1.60%4.8%
42 72
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
AND NET POSITION OR EQUITY (cont.)
1.Deposits and Investments (cont.)
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 2019 are prepared by Lake County and issued in May 2020 and are payable in two
installm ents, on or about June 1, 2020 and September 1, 2020 or within 30 days of the tax bills being
issued.
The county collects such taxes and remits them periodically. The 2019 property tax levy is recognized as a
receivable and deferral in fiscal 2020, net the 1.5% allowance for uncollectible. As the taxes become
available to finance current expenditures, they are recognized as revenues. At April 30, 2020, the property
taxes receivable and related deferred inflows consisted of the estimated amount collectible from the 2019
levy.
Property taxes for levy year 2020 attaches as an enforceable lien on January 1, 2020, 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 2020 tax levy, which attached as an enforceable lien on the property as of January
1, 2020, has not been recorded as a receivable as of April 30, 2020, as the tax has not yet been levied by
the City and will not be levied until December 2020, and therefore, the levy is not measurable at April 30,
2020.
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.
43 73
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
AND NET POSITION OR EQUITY (cont.)
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.
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
44 74
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
AND NET POSITION OR EQUITY (cont.)
4.Capital Assets (cont.)
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.
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.
45 75
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
AND NET POSITION OR EQUITY (cont.)
7.Long-Term Obligations
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.
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.
46 76
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
AND NET POSITION OR EQUITY (cont.)
9. Equity Classifications
Fund Statements (cont.)
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.
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.
47 77
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D.ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND
AND NET POSITION OR EQUITY (cont.)
9. Equity Classifications
Fiduciary fund net position is classified as restricted for pension benefits and other purposes on the
statement of fiduciary net position. Various donor restrictions apply, including authorizing and spending
trust income, and the City believes it is in compliance with all significant restrictions.
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.
48 78
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE II - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (cont.)
B.DEFICIT BALANCES
Generally accepted accounting principles require disclosure of individual funds that have deficit balances
at year end.
As of April 30, 2020, the following individual funds held a deficit balance:
Fund Amount
Laurel/W estern Redevelopment
TIF Improvements
$743,104
49 79
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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 $43,165,077 $44,939,909 Custodial Credit Risk -
Deposits
Money markets 1,107,633 1,107,633 Custodial Credit Risk -
Deposits
U.S. government agencies - implicitly
guaranteed
3,987,998 3,987,998 Credit Risk, Custodial
Credit Risk - Investments,
Concentration of Credit
Risk, Interest Rate Risk
Mutual funds - other than bonds 42,499,010 42,665,446 N/A
U.S. treasury obligations 13,650,700 13,650,700 Custodial Credit Risk -
Investments, Interest
Rate Risk
Real estate investment fund 3,824,762 3,824,762 Custodial Credit Risk -
Investments
Municipal/corporate bonds 9,148,360 9,148,360 Credit Risk, Custodial
Credit Risk - Investments,
Concentration of Credit
Risk, Interest Rate Risk
Illinois funds 30,267,268 30,267,268 Credit Risk
Equity securities 5,065,132 5,065,132 Custodial Credit Risk -
Investments, Foreign
Currency Risk
Mutual funds - bond funds 633,325 633,325 Credit Risk, Interest Rate
Risk
Petty cash 11,325 -N/A
Total Deposits and Investments $153,360,590 $155,290,533
50 80
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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
$67,691,138
Investments - primary government 7,077,796
Cash and cash equivalents - Lake Forest
Library
5,455,932
Per statement of net position - fiduciary funds
Private Purpose Trust - money markets 7,946
Private Purpose Trust - equity securities 369,919
Private Purpose Trust - mutual funds 333,492
Pension Trusts - cash 659,197
Pension Trusts - money markets 737,089
Pension Trusts - U.S. treasury obligations 13,650,700
Pension Trusts - U.S. government agencies 3,987,998
Pension Trusts - Municipal/corporate bonds 9,148,360
Pension Trusts - mutual funds 40,416,261
Pension Trusts - real estate investment fund 3,824,762
Total Deposits and Investments $153,360,590
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.
For Level 2 inputs, the City utilizes investments valued by a pricing service that uses matrix
pricing. A Level 2 input would be a price or yield of a similar investment.
51 81
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
A.DEPOSITS AND INVESTMENTS (cont.)
As of April 30, 2020, the City's investments were measured using the market value valuation technique for
Level 1 and Level 2 inputs. The valuation inputs as follows:
April 30, 2020
Investment Type Level 1 Level 2 Level 3 Total
Equity securities $4,695,213 $-$-$4,695,213
Mutual funds - bond funds 471,358 --471,358
Mutual funds - other than bond funds 1,911,224 --1,911,224
Total $7,077,795 $-$-$7,077,795
Private Purpose Trust
April 30, 2020
Investment Type Level 1 Level 2 Level 3 Total
Equity securities $369,919 $-$-$369,919
Mutual funds - bond funds 161,967 --161,967
Mutual funds - other than bond funds 171,525 --171,525
Total $703,411 $-$-$703,411
Police Pension Fund
April 30, 2020
Investment Type Level 1 Level 2 Level 3 Total
U.S. treasury obligations $8,937,039 $-$-$8,937,039
U.S. government agencies -270,051 -270,051
Mutual funds - other than bond funds 16,696,005 --16,696,005
Corporate bonds -2,606,172 -2,606,172
Total $25,633,044 $2,876,223 $-$28,509,267
52 82
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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 $3,824,762 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, 2020
Investment Type Level 1 Level 2 Level 3 Total
U.S. treasury obligations $4,713,661 $-$-$4,713,661
U.S. government agencies -3,717,947 -3,717,947
Municipal bonds -464,913 -464,913
Corporate bonds -6,077,275 -6,077,275
Mutual funds - other than bond funds 23,720,256 --23,720,256
Total $28,433,917 $10,260,135 $-$38,694,052
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.
53 83
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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, 2020, 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 N/A 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.
54 84
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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, 2020, the City's investments were as follows:
Police Pension Fund
Maturity (In Months)
Investment Type Fair Value
Less than one
year 1 - 5 years 6-10 years
More than 10
years
U.S. treasury obligations $8,937,039 $696,900 $5,732,243 $2,507,896 $-
U.S. government agencies 270,051 -270,051 --
Corporate bonds 2,606,172 222,211 1,118,425 847,097 418,439
Totals $11,813,262 $919,111 $7,120,719 $3,354,993 $418,439
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 $4,713,661 $1,389,219 $651,238 $815,719 $1,857,485
U.S. government agencies 3,717,947 71,258 761,399 853,363 2,031,927
Municipal bonds 464,913 185,772 279,141 --
Corporate bonds 6,077,275 433,230 1,697,103 2,389,670 1,557,272
Totals $14,973,796 $2,079,479 $3,388,881 $4,058,752 $5,446,684
The City and Private Purpose Trust have $633,325 invested in mutual funds - bond funds that have a
maturity of less than one year.
55 85
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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, 2020, the annual money-weighted rate of return on the police pension plan
investments, net of pension plan investment expense, was 0.59%. 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, 2020, the annual money-weighted rate of return on the firefighters' pension
plan investments, net of pension plan investment expense, was 2.63%. 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.
56 86
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
C.CAPITAL ASSETS
Capital asset activity for the year ended April 30, 2020, was as follows:
Beginning
Balance Additions Deletions
Ending
Balance
Governmental Activities
Capital assets not being depreciated
Land and land improvements $38,132,733 $2,311,492 $275,908 $40,168,317
Infrastructure - land 66,740,770 --66,740,770
Construction in progress 1,287,984 -1,268,424 19,560
Total Capital Assets Not Being
depreciated 106,161,487 2,311,492 1,544,332 106,928,647
Capital assets being depreciated
Infrastructure 185,997,107 2,069,422 37,806 188,028,723
Buildings 30,002,059 --30,002,059
Improvements other than buildings 33,767,865 246,246 -34,014,111
Machinery and equipment 18,095,699 1,428,486 346,233 19,177,952
Total Capital Assets Being
Depreciated 267,862,730 3,744,154 384,039 271,222,845
Total Capital Assets 374,024,217 6,055,646 1,928,371 378,151,492
Less: Accumulated depreciation for
Infrastructure (132,421,945)(2,518,217)(37,806)(134,902,356)
Buildings (12,378,943)(658,229)-(13,037,172)
Improvements other than buildings (18,280,823)(1,316,783)-(19,597,606)
Machinery and equipment (14,255,314)(1,129,202)(322,752)(15,061,764)
Total Accumulated depreciation (177,337,025)(5,622,431)(360,558)(182,598,898)
Net Capital Assets Being
Depreciated 90,525,705 (1,878,277)23,481 88,623,947
Total Governmental Activities
Capital Assets, Net of
Accumulated Depreciation $196,687,192 $433,215 $1,567,813 $195,552,594
Depreciation expense was charged to functions as follows:
Governmental Activities
General government $1,550,015
Highways and streets 2,653,458
Sanitation 82,816
Culture and recreation 1,010,359
Public safety 325,783
Total Governmental Activities Depreciation Expense $5,622,431
57 87
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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 -14,929 -14,929
Total Capital Assets Not Being
Depreciated 441,413 14,929 -456,342
Capital assets being depreciated
Buildings 27,020,235 --27,020,235
Improvements other than buildings 57,309,617 431,065 -57,740,682
Machinery and equipment 5,344,621 253,157 100,454 5,497,324
Sanitary sewers and related property 31,026,973 30,781 -31,057,754
Total Capital Assets Being
Depreciated 120,701,446 715,003 100,454 121,315,995
Total Capital Assets 121,142,859 729,932 100,454 121,772,337
Less: Accumulated depreciation for
Buildings (16,605,988)(1,003,572)-(17,609,560)
Improvements other than buildings (24,058,296)(1,401,263)-(25,459,559)
Machinery and equipment (3,623,753)(359,205)(100,454)(3,882,504)
Sanitary sewers and related property (18,329,226)(577,302)-(18,906,528)
Total Accumulated depreciation (62,617,263)(3,341,342)(100,454)(65,858,151)
Net Capital Assets Being
Depreciated 58,084,183 (2,626,339)-55,457,844
Business-type Capital
Assets, Net of Accumulated
depreciation $58,525,596 $(2,611,410)$-$55,914,186
58 88
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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 4,007,888 327,587 442,751 3,892,724
Total Capital Assets Being
Depreciated 7,459,888 327,587 442,751 7,344,724
Total Capital Assets 7,698,388 327,587 442,751 7,583,224
Less: Accumulated depreciation for
Buildings (747,216)(19,713)-(766,929)
Improvements other than buildings (1,542,826)(63,615)-(1,606,441)
Machinery and equipment (2,434,078)(370,266)(442,751)(2,361,593)
Total Accumulated Depreciation (4,724,120)(453,594)(442,751)(4,734,963)
Net Capital Assets Being
Depreciated 2,735,768 (126,007)-2,609,761
Total Component Unit
Capital Assets, Net of
Accumulated Depreciation $2,974,268 $(126,007)$-$2,848,261
59 89
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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 1,123,104
Total - Fund Financial Statements 1,248,104
Less: Interfund receivables created with internal service fund
eliminations (972,037)
Less: Government-wide eliminations (1,123,104)
Total Internal Balances - Government-W ide Statement of Net
Position $(847,037)
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 fiscal year 2017 and the receipts were recorded within the Capital
Improvements Fund. The amount is not expected to be repaid within 1 year as it is based on TIF
increment proceeds.
60 90
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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 $300,490 Transfer for operations
Water and Sewer General 2,500 Transfer for operations
Nonmajor government General 246,882 Transfer for operations
Nonmajor government General 124,909 Transfer for debt service
Nonmajor government Nonmajor government 362,063 Transfer for debt service
Capital Improvement General 3,593,323 Transfer for capital outlay
Nonmajor enterprise Parks and Recreation 196,000 Transfer for debt service
Total - Fund Financial Statements 4,826,167
Less: Government-wide eliminations (4,627,667)
Total Transfers - Government-W ide Statement
of Activities $198,500
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.
61 91
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
E.LONG-TERM OBLIGATIONS
Long-term obligations activity for the year ended April 30, 2020, was as follows:
Beginning
Balance Increases Decreases
Ending
Balance
Amounts Due
Within One
Year
Governmental Activities
Bonds and Notes Payable
General obligation bonds $31,928,784 $10,751,022 $13,137,849 $29,541,957 $1,910,089
Premiums 106,931 797,618 105,552 798,997 -
Discount (19,237)-(19,237)--
Sub-totals 32,016,478 11,548,640 13,224,164 30,340,954 1,910,089
Other Liabilities
Compensated absences 1,898,337 2,565,262 2,253,111 2,210,488 120,000
Total OPEB liability 2,219,071 460,736 156,130 2,523,677 -
Net pension liability 62,473,470 5,012,280 5,467,992 62,017,758 -
Total Other Liabilities 66,590,878 8,038,278 7,877,233 66,751,923 120,000
Total Governmental
Activities Long-Term
Liabilities $98,607,356 $19,586,918 $21,101,397 $97,092,877 $2,030,089
Business-type Activities
Bonds Payable
General obligation bonds $18,975,000 $6,913,978 $9,540,000 $16,348,978 $1,934,413
Premium 115,324 619,236 220,119 514,441 -
Sub-totals 19,090,324 7,533,214 9,760,119 16,863,419 1,934,413
Other Liabilities
Compensated absences 258,528 281,155 278,170 261,513 5,000
Total OPEB liability 218,440 43,449 15,258 246,631 -
Net pension liability 1,890,425 -1,229,787 660,638 -
Total Other Liabilities 2,367,393 324,604 1,523,215 1,168,782 5,000
Total Business-type
Activities Long-Term
Liabilities $21,457,717 $7,857,818 $11,283,334 $18,032,201 $1,939,413
Component Unit - Lake Forest
Library
Compensated absences $164,486 $8,061 $23,145 $149,402 $5,000
Capital leases 2,352 105,225 25,102 82,475 34,410
Total OPEB liability 204,565 9,097 13,082 200,580 -
Net pension liability 1,415,574 -893,889 521,685 -
Total Other Liabilities 1,786,977 122,383 955,218 954,142 39,410
Total Component Unit
Long-Term Liabilities $1,786,977 $122,383 $955,218 $954,142 $39,410
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.
62 92
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE III - DETAILED NOTES ON ALL FUNDS (cont.)
E.LONG-TERM OBLIGATIONS (cont.)
General Obligation Debt (cont.)
Governmental Activities
General Obligation Bonds
Date of
Issue
Final
Maturity
Interest
Rates
Original
Indebtedness
Balance
April 30, 2020
Special Service Area 25 5/1/2003 12/15/2022 1.95-2.95%$1,050,000 $220,000
Special Service Area 26 10/7/2003 12/15/2022 2.50-3.40%276,500 59,283
Special Service Area 29 12/20/2004 12/15/2023 2.55-3.65%2,000,000 561,652
2013 Series 9/16/2013 12/15/2032 2.00-4.00%9,715,000 8,885,000
2015 Series 8/3/2015 12/15/2036 2.50-3.75%9,780,000 9,065,000
2019 Series Refunding 12/19/2019 12/15/2032 2.00-5.00%10,751,022 10,751,022
Total Governmental Activities - General Obligation Bonds $29,541,957
Business-type Activities
General Obligation Bonds
Date of
Issue
Final
Maturity
Interest
Rates
Original
Indebtedness
Balance
April 30, 2020
2011 Series A 9/6/2011 12/15/2020 1.50-3.00%$1,195,000 $140,000
2017 Series 6/5/2017 12/15/2037 2.00-3.50%9,295,000 9,295,000
2019 Series Refunding 12/15/2019 12/15/2032 2.00-5.00%6,913,978 6,913,978
Total Business-type Activities - General Obligation Bonds $16,348,978
Debt service requirements to maturity are as follows:
Governmental Activities Business-type Activities
General Obligation Bonds General Obligation Bonds
Years Principal Interest Principal Interest
2021 $1,910,089 $1,026,458 $1,934,413 $615,593
2022 2,009,666 957,821 1,871,947 526,731
2023 2,087,957 878,327 1,976,252 433,540
2024 2,069,245 795,703 1,786,366 334,721
2025 1,475,000 712,525 525,000 260,853
2026-2030 9,510,000 2,704,274 2,820,000 1,100,848
2031-2035 9,790,000 915,213 3,235,000 681,388
2036-2038 690,000 38,150 2,200,000 153,975
Totals $29,541,957 $8,028,471 $16,348,978 $4,107,649
63 93
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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.
Current Refunding
On December 19, 2019, the City issued $17,665,000 in general obligation bonds with an average coupon
rate of 3.39% to refund $18,880,000 of outstanding bonds (Series 2009 G.O. bonds, Series 2010 G.O.
bonds, Series 2011B G.O. bonds), with an average coupon rates of 2.80-5.00%. The net proceeds were
used to prepay the outstanding debt.
The cash flow requirements on the refunded debt prior to the current refunding was $21,957,080 from
12/15/2020 through 12/15/2032. The cash flow requirements on the Series 2019 refunding bonds are
$20,657,218 from 12/15/2020 through 12/15/2032. The current refunding resulted in a cash flow savings
of $1,299,862. The current refunding resulted in an economic gain (difference between the present values
of the debt service payments on the old and new debt) of $1,187,869.
F. LEASE DISCLOSURES
Lessee - Capital Leases
In 2020 the Library acquired capital assets through a lease/purchase agreement. The gross amount of
these assets under capital leases is $105,225, which are included in capital assets in the discretely
presented component unit activities. The future minimum lease obligations and the net present value on
these minimum lease payments as of April 30, 2020, are as follows:
Component Unit
Years Principal Interest Totals
2021 $34,410 $667 $35,077
2022 34,756 322 35,078
2023 13,309 30 13,339
Totals $82,475 $1,019 $83,494
64 94
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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, 2020, include the
following:
General Fund
Parks and
Recreation
Fund
Capital
Improvements
Fund
Nonmajor
Governmental
Funds Totals
Fund Balances
Nonspendable:
Prepaid items $97,767 $-$-$28,689 $126,456
Inventories 45,936 450 --46,386
Sub-total 143,703 450 -28,689 172,842
Restricted for:
Culture and
recreation -1,292,151 -1,236,267 2,528,418
Highway and streets ---1,756,550 1,756,550
Public safety - fire ---263,004 263,004
Public safety -
police ---687,341 687,341
Cemetery perpetual
care ---8,065,570 8,065,570
Affordable housing ---1,209,518 1,209,518
Capital projects --11,315,878 -11,315,878
Debt service ---1,866,992 1,866,992
Sub-total -1,292,151 11,315,878 15,085,242 27,693,271
Unassigned:29,433,682 --(743,104)28,690,578
Total Fund
Balances $29,577,385 $1,292,601 $11,315,878 $14,370,827 $56,556,691
65 95
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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, 2019, the measurement date, membership in the plan was as
follows:
Retirees and beneficiaries 292
Inactive, non-retired members 177
Active members 194
Total 663
66 96
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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 2019 was
9.58% 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, 2019,
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, 2019 using the following actuarial methods and assumptions:
Actuarial cost method Entry Age Normal
Asset valuation method Market Value
Actuarial assumptions
Investment Rate of Return 7.50%
Salary increases 3.35% 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.
67 97
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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%7.05%5.75%
International equities 18.00%8.10%6.50%
Fixed income 28.00%3.70%3.25%
Real estate 9.00%6.35%5.20%
Alternatives 7.00%
Private equity 11.30%7.60%
Commodities 4.65%3.60%
Cash equivalents 1.00%1.85%1.85%
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, 2018 measurement date was 7.25%. 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.
68 98
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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 $112,982,662 $100,882,053 $90,883,249
Plan fiduciary net pension 96,060,540 96,060,540 96,060,540
Net pension liability/(asset)$16,922,122 $4,821,513 $(5,177,291)
Library:
Total pension liability $14,646,340 $13,077,695 $11,781,515
Plan fiduciary net pension 12,556,010 12,556,010 12,556,010
Net pension liability/(asset)$2,090,330 $521,685 $(774,495)
Total:
Total pension liability $127,629,002 $113,959,748 $102,664,764
Plan fiduciary net pension 108,616,550 108,616,550 108,616,550
Net pension liability/(asset)$19,012,452 $5,343,198 $(5,951,786)
Changes in net pension liability/(asset). The changes in net pension liability/(asset)for the calendar
year ended December 31, 2019 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, 2018 $96,560,810 $82,883,531 $13,677,279
Service cost 1,244,941 -1,244,941
Interest on total pension liability 6,990,156 -6,990,156
Differences between expected and actual
experience of the total pension liability
1,465,195 -1,465,195
Change of assumptions (58,022)-(58,022)
Benefit payments, including refunds of
employee contributions
(5,321,027)(5,321,027)-
Contributions - employer -1,224,123 (1,224,123)
Contributions - employee -575,110 (575,110)
Net investment income -16,063,705 (16,063,705)
Other (net transfer)-635,098 (635,098)
Balances at December 31, 2019 $100,882,053 $96,060,540 $4,821,513
69 99
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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, 2018 $12,545,839 $11,130,265 $1,415,574
Service cost 134,702 -134,702
Interest on total pension liability 756,331 -756,331
Differences between expected and actual
experience of the total pension liability
158,533 -158,533
Change of assumptions 58,022 -58,022
Benefit payments, including refunds of
employee contributions
(575,732)(575,732)-
Contributions - employer -132,449 (132,449)
Contributions - employee -62,227 (62,227)
Net investment income -1,738,084 (1,738,084)
Other (net transfer)-68,717 (68,717)
Balances at December 31, 2019 $13,077,695 $12,556,010 $521,685
Total:
Balances at December 31, 2018 $109,106,649 $94,013,796 $15,092,853
Service cost 1,379,643 -1,379,643
Interest on total pension liability 7,746,487 -7,746,487
Differences between expected and actual
experience of the total pension liability
1,623,728 -1,623,728
Benefit payments, including refunds of
employee contributions
(5,896,759)(5,896,759)-
Contributions - employer -1,356,572 (1,356,572)
Contributions - employee -637,337 (637,337)
Net investment income -17,801,789 (17,801,789)
Other (net transfer)-703,815 (703,815)
Balances at December 31, 2019 $113,959,748 $108,616,550 $5,343,198
Plan fiduciary net position as a percentage of
the total pension liability %95.31
70 100
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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, 2020, the City recognized pension expense of $1,897,771.
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 $1,304,089 $-
Assumption changes 972,727 331,057
Net difference between projected and actual earnings on pension
plan investments -4,213,085
Contributions subsequent to the measurement date 529,373 -
Total $2,806,189 $4,544,142
Library:
Difference between expected and actual experience $141,102 $-
Assumption changes 105,248 35,820
Net difference between projected and actual earnings on pension
plan investments -455,853
Contributions subsequent to the measurement date 62,805 -
Total $309,155 $491,673
Total:
Difference between expected and actual experience $1,445,191 $-
Assumption changes 1,077,975 366,877
Net difference between projected and actual earnings on pension
plan investments -4,668,938
Contributions subsequent to the measurement date 592,178 -
Total $3,115,344 $5,035,815
71 101
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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, 2021. The remaining amounts reported as deferred outflows and inflows of resources
related to pensions $(2,512,649) will be recognized in pension expense as follows:
Year Ending December 31,City Library Total
2021 $(14,923)$(1,615)$(16,538)
2022 (674,069)(72,934)(747,003)
2023 425,232 46,010 471,242
2024 (2,003,566)(216,784)(2,220,350)
Total $(2,267,326)$(245,323)$(2,512,649)
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.
72 102
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Police Pension (cont.)
Plan membership. At April 30, 2020, the Police Pension membership consisted of:
Retirees and beneficiaries 40
Inactive, non-retired members 11
Active members 39
Total 90
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, 2020 was 63.78% of annual covered payroll.
Net Pension Liability/(Asset). The net pension liability/(asset) was measured as of April 30, 2020, 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.
73 103
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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, 2020 using the following actuarial methods and assumptions:
Actuarial cost method Entry Age Normal
Asset valuation method Market Value
Actuarial assumptions
Interest rate 6.50%
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, project 5 years past the valuation date with
Scale MP-2019.
Discount rate. The discount rate used to measure the total pension liability for the Police Pension Plan
was 6.50%. The discount rate calculated using the April 30, 2019 measurement date was 6.75%. 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 6.50% 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 (5.50%) or 1 percentage point higher (7.50%) than the
current rate:
1% Decrease
Current
Discount Rate 1% Increase
Total pension liability $80,021,490 $69,868,229 $61,594,702
Plan fiduciary net position 33,562,715 33,562,715 33,562,715
Net pension liability $46,458,775 $36,305,514 $28,031,987
74 104
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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, 2020 was as follows:
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/Asset
(a) - (b)
Balances at April 30, 2019 $66,252,095 $33,350,826 $32,901,269
Service cost 908,951 -908,951
Interest on total pension liability 4,435,870 -4,435,870
Changes in benefit terms 231,490 -231,490
Differences between expected and actual
experience of the total pension liability (1,297,619)-(1,297,619)
Change of assumptions 2,226,349 -2,226,349
Benefit payments, including refunds of employee
contributions (2,888,907)(2,888,907)-
Contributions - employer -2,589,534 (2,589,534)
Contributions - employee -404,985 (404,985)
Net investment income -158,632 (158,632)
Administration -(52,355)52,355
Balances at April 30, 2020 $69,868,229 $33,562,715 $36,305,514
Pension expense and deferred outflows of resources and deferred inflows of resources related
to pensions.For the year ended April 30, 2020, the City recognized pension expense of $5,113,785.
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 $1,287,174 $1,408,922
Assumption changes 4,256,502 -
Net difference between projected and actual earnings on pension
plan investments 1,834,086 -
Total $7,377,762 $1,408,922
75 105
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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 $5,968,840 will
be recognized in pension expense as follows:
Year Ending April 30,Amount
2021 $1,660,044
2022 1,849,311
2023 1,854,870
2024 604,615
Total $5,968,840
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.
76 106
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE IV - OTHER INFORMATION (cont.)
A.EMPLOYEES' RETIREMENT SYSTEM (cont.)
Firefighters' Pension (cont.)
Plan membership. At April 30, 2020, the Firefighters' Pension Plan membership consisted of:
Retirees and beneficiaries 43
Inactive, non-retired members 2
Active members 33
Total 78
Contributions. Participants contribute a fixed percentage of their base salary to the plans. At April 30,
2020, 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, 2020 was 52.95% of
annual covered payroll.
Net pension liability/(asset). The net pension liability/(asset) was measured as of April 30, 2020, 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.
77 107
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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, 2020 using the following actuarial methods and assumptions:
Actuarial cost method Entry Age
Asset valuation method 5-year average Market Value
Actuarial assumptions
Interest rate 6.50%
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, project 5 years past the valuation date with
Scale MP-2019
Discount rate. The discount rate used to measure the total pension liability for the Firefighters' Pension
Plan was 6.50%. The discount rate calculated using the April 30, 2019 measurement date was 6.75%.
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 6.50% 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 (5.50%) or 1 percentage point higher (7.50%) than the
current rate:
1% Decrease
Current
Discount Rate 1% Increase
Total pension liability $69,286,332 $60,620,657 $53,556,711
Plan fiduciary net position 39,069,288 39,069,288 39,069,288
Net pension liability $30,217,044 $21,551,369 $14,487,423
78 108
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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, 2020 was as follows:
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/Asset
(a) - (b)
Balances at April 30, 2019 $56,470,867 $38,685,520 $17,785,347
Service cost 876,151 -876,151
Interest on total pension liability 3,779,365 -3,779,365
Changes in benefit terms 172,556 -172,556
Differences between expected and actual
experience of the total pension liability 134,069 -134,069
Change of assumptions 1,900,513 -1,900,513
Benefit payments, including refunds of employee
contributions (2,712,864)(2,712,864)-
Contributions - employer -1,822,064 (1,822,064)
Contributions - employee -330,725 (330,725)
Net investment income -988,063 (988,063)
Administration -(44,220)44,220
Balances at April 30, 2020 $60,620,657 $39,069,288 $21,551,369
Pension expense and deferred outflows of resources and deferred inflows of resources related
to pensions.For the year ended April 30, 2020, the City recognized pension expense of $3,476,383.
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 $386,886 $31,079
Assumption changes 4,118,657 -
Net difference between projected and actual earnings on pension
plan investments 590,886 -
Total $5,096,429 $31,079
79 109
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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 $5,065,350 will
be recognized in pension expense as follows:
Year Ending April 30,Amount
2021 $1,095,360
2022 1,295,764
2023 1,130,726
2024 1,204,403
2025 339,097
Total $5,065,350
PENSION SEGMENT INFORMATION
Fiduciary Net Position
Pension Trust
Police
Pension
Firefighters'
Pension Total
Assets
Cash $388,961 $270,236 $659,197
Money markets 737,089 -737,089
Investments
U.S. treasury obligations 8,937,039 4,713,661 13,650,700
U.S. government agencies 270,051 3,717,947 3,987,998
Municipal/corporate bonds 2,606,172 6,542,188 9,148,360
Mutual funds 16,696,005 23,720,256 40,416,261
Real estate investment fund 3,824,762 -3,824,762
Prepaids 4,000 4,528 8,528
Interest receivable 58,954 111,348 170,302
Due from primary government 46,146 26,034 72,180
Total Assets 33,569,179 39,106,198 72,675,377
Liabilities
Accounts payable 6,463 36,910 43,373
Total Liabilities 6,463 36,910 43,373
Net Position
Restricted for pensions $33,562,716 $39,069,288 $72,632,004
80 110
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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 $2,589,534 $1,822,064 $4,411,598
Employee 404,985 330,725 735,710
--595,658
Total Contributions 2,994,519 2,152,789 5,147,308
Investment Income
Interest 632,456 825,823 1,458,279
Net appreciation in fair value of investments (401,182)245,490 (155,692)
Total Investment income 231,274 1,071,313 1,302,587
Less investment expense 72,639 83,475 156,114
Net investment income 158,635 987,838 1,146,473
Miscellaneous -226 226
Total Additions 3,153,154 3,140,853 6,294,007
Deductions
Pension benefits and refunds 2,888,907 2,712,864 5,601,771
Other administrative expenses 52,357 44,221 96,578
Total Deductions 2,941,264 2,757,085 5,698,349
Change in net position 211,890 383,768 595,658
Net position, beginning of year 33,350,826 38,685,520 72,036,346
Net position, end of year $33,562,716 $39,069,288 $72,632,004
Aggregate pension expense. Aggregate pension expense for IMRF, police pension, and firefighters'
pension totals $10,487,939 for the year ended April 30, 2020.
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.
81 111
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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
2018-2019 $94,553 $377,343 $258,501 $213,395
2019-2020 213,395 262,847 273,503 202,739
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.
82 112
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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, 2020 and 2019 are as follows:
Beginning of End of
Fiscal Year Changes in Claim Fiscal Year
Liability Estimates Payments Liability
2018-2019 $595,370 $4,608,923 $4,636,187 $568,106
2019-2020 568,106 4,535,326 4,534,149 569,284
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 Solid W aste Agency of Lake County.
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.
83 113
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
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 $1,451,279 at April 30, 2020.
Work that has been completed on these projects but not yet paid for (including contract retainages) is
reflected as accounts payable and expenditures.
Economic Uncertainty
In December 2019, a novel strain of coronavirus was reported in W uhan, Hubei province, China. In the
first several months of 2020, the virus, SARS-CoV-2, and resulting disease, COVID-19, spread to the
United States, including areas impacting the City. The City’s evaluation of the effects of these events is
ongoing, however we anticipate this situation could impact investment values, and the City continues to
monitor the market. The City is actively seeking grant opportunities and has filed with Lake County its
initial funding request for COVID 19 Relief Funds.
84 114
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE IV - OTHER INFORMATION (cont.)
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, which are single-employer 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.
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, 2020, 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 $2,770,308 was measured as of April 30, 2020, and was determined by
an actuarial valuation as of that date. The Library's total OPEB liability of $200,580 was measured as of
April 30, 2020, and was determined by an actuarial valuation as of that date.
85 115
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE IV - OTHER INFORMATION (cont.)
E.OTHER POSTEMPLOYMENT BENEFITS (cont.)
Actuarial assumptions and other inputs. For both the City and Library, the total OPEB liability in the
April 30, 2020 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.
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, 2020 valuation were based on the results of an actuarial
experience study for the period May 1, 2018 - April 30, 2020.
CHANGES IN THE TOTAL OPEB LIABILITY
City - Total
OPEB Liability
Library - Total
OPEB Liability
Balances at April 30, 2019 $2,437,511 $204,565
Changes for the year:
Service cost 49,721 1,718
Interest 89,145 7,379
Changes in assumptions or other inputs 365,319 6,686
Benefit payments (171,388)(19,768)
Net changes 332,797 (3,985)
Balances at April 30, 2020 $2,770,308 $200,580
Changes of assumptions and other inputs reflect a change in the discount rate from 3.79 percent in 2019
to 2.56 percent in 2020 for both the City and the Library.
86 116
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE IV - OTHER INFORMATION (cont.)
E.OTHER POSTEMPLOYMENT BENEFITS (cont.)
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 $2,994,907 $2,770,308 $2,568,437
Total OPEB liability - Library $206,228 $200,580 $195,120
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 $2,483,047 $2,770,308 $3,106,025
Total OPEB liability - Library $190,623 $200,580 $211,114
OPEB EXPENSE AND DEFERRED OUTFLOWS OF RESOURCES AND DEFERRED INFLOWS OF RESOURCES
RELATED TO OPEB
For the year ended April 30, 2020, the City recognized negative OPEB expense of $174,645. At April 30,
2020, 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 $358,820 $-
Total $358,820 $-
87 117
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE IV - OTHER INFORMATION (cont.)
E.OTHER POSTEMPLOYMENT BENEFITS (cont.)
For the year ended April 30, 2020, the Library recognized negative OPEB expense of $9,923. At April 30,
2020, 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 $6,953 $-
Total $6,953 $-
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
2021 $35,779 $826
2022 35,779 826
2023 35,779 826
2024 35,779 826
2025 35,779 826
Thereafter 179,925 2,823
Total $358,820 $6,953
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, 2020, the City received $222,945 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, 2020.
88 118
CITY OF LAKE FOREST
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended April 30, 2020
NOTE IV - OTHER INFORMATION (cont.)
A redevelopment agreement between the City and developer was also executed in September 2016. As
of April 30, 2020, 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 2020, construction of the
three apartment buildings is complete and the buildings are nearly fully occupied on an ongoing basis with
a normal rate of turnover as leases expire. The first of two condominiums is complete with seventeen (17)
condominiums sold and one additional condominium under contract. Construction of the second
condominium building has not yet started. Five (5) single family homes have been sold and an additional
home is under construction.
G.EFFECT OF NEW ACCOUNTING STANDARDS ON CURRENT-PERIOD FINANCIAL STATEMENTS
The Governmental Accounting Standards Board (GASB) has approved the following:
Statement No. 87, Leases
Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction
Period
Statement No. 91, Conduit Debt Obligations
Statement No. 92, Omnibus
Statement No. 93, Replacement of Interbank Offered Rates
Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment
Arrangements
Statement No. 96, Subscription-Based Information Technology Arrangements
Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial
Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans -- An
Amendment of GASB Statements No. 14 and No. 84 and a Supersession of GASB
Statement No. 32
The statements listed above through Statement No 93. had their required effective dates postponed by
one year with the issuance of Statement No. 95, Postponement of Effective Dates of Certain Authoritative
Guidance, with the exception of Statement No.87, which was postponed by one and a half years.
When they become effective, application of these standards may restate portions of these financial
statements.
89 119
REQUIRED SUPPLEMENTAR Y INFORMAT ION
120
CITY OF LAKE FOREST
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND
For the Year Ended April 30, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Taxes
Property $18,989,621 $18,989,621 $18,930,909 $(58,712)
Other taxes 2,647,920 2,647,920 2,350,852 (297,068)
Intergovernmental 5,996,701 5,996,701 6,509,510 512,809
Licenses and permits 2,384,656 2,384,656 2,954,115 569,459
Fines, forfeitures and penalties 227,000 227,000 271,235 44,235
Charges for services 4,302,211 4,302,211 4,796,048 493,837
Grants and contributions --12,028 12,028
Investment income 791,815 791,815 679,423 (112,392)
Miscellaneous revenues 1,279,500 1,279,500 1,301,177 21,677
Total Revenues 36,619,424 36,619,424 37,805,297 1,185,873
EXPENDITURES
Current
General government 11,083,334 11,221,619 9,860,981 1,360,638
Highways and streets 2,515,391 2,552,093 2,303,462 248,631
Sanitation 2,492,401 2,492,401 2,575,451 (83,050)
Public safety 17,364,156 17,474,622 18,165,098 (690,476)
Contingency 3,586,132 3,586,132 -3,586,132
Total Expenditures 37,041,414 37,326,867 32,904,992 4,421,875
Excess (deficiency) of revenues over
(under) expenditures (421,990)(707,443)4,900,305 5,607,748
OTHER FINANCING SOURCES
(USES)
Transfers out (2,220,722)(2,695,581)(4,268,104)(1,572,523)
Total Other Financing Sources
(Uses)(2,220,722)(2,695,581)(4,268,104)(1,572,523)
Net Change in Fund Balance $(2,642,712)$(3,403,024)632,201 $4,035,225
FUND BALANCE - Beginning of Year 28,945,184
FUND BALANCE - END OF YEAR $29,577,385
See independent auditors' report and accompanying notes to required supplementary information.
90 121
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, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Property taxes $5,790,611 $5,790,611 $5,772,949 $(17,662)
Intergovernmental 40,000 40,000 44,907 4,907
Charges for services 3,363,711 3,363,711 2,443,544 (920,167)
Grants and contributions 185,102 185,102 167,244 (17,858)
Investment income 93,000 93,000 64,829 (28,171)
Miscellaneous revenues 30,050 30,050 13,131 (16,919)
Total Revenues 9,502,474 9,502,474 8,506,604 (995,870)
EXPENDITURES
Current
Culture and recreation 9,119,102 9,202,322 8,652,397 549,925
Capital Outlay 420,384 793,257 689,077 104,180
Contingency 1,000,058 1,000,058 -1,000,058
Total Expenditures 10,539,544 10,995,637 9,341,474 1,654,163
Excess (deficiency) of revenues over
(under) expenditures (1,037,070)(1,493,163)(834,870)658,293
OTHER FINANCING SOURCES
(USES)
Transfers in 285,000 285,000 300,490 15,490
Transfers out (50,000)(50,000)(196,000)(146,000)
Total Other Financing Sources
(Uses)235,000 235,000 104,490 (130,510)
Net Change in Fund Balance $(802,070)$(1,258,163)(730,380)$527,783
FUND BALANCE - Beginning of Year 2,022,981
FUND BALANCE - END OF YEAR $1,292,601
See independent auditors' report and accompanying notes to required supplementary information.
91 122
See independent auditors' report and accompanying notes to required supplementary information.
92
CITY OF LAKE FOREST
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY
AND RELATED RATIOS
For the past five fiscal years
City Library Total
Total pension liability
Service cost 1,549,831$ 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.
123
See independent auditors' report and accompanying notes to required supplementary information.
93
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
124
See independent auditors' report and accompanying notes to required supplementary information.
94
CITY OF LAKE FOREST
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY
AND RELATED RATIOS
For the past five 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.
125
See independent auditors' report and accompanying notes to required supplementary information.
95
City Library Total
1,244,941$ 134,702$ 1,379,643$
6,990,156 756,331 7,746,487
1,465,195 158,533 1,623,728
(58,022) 58,022 -
- - -
(5,321,027) (575,732) (5,896,759)
4,321,243 531,856 4,853,099
96,560,810 12,545,839 109,106,649
100,882,053$ 13,077,695$ 113,959,748$
1,224,123$ 132,449$ 1,356,572$
575,110 62,227 637,337
16,063,705 1,738,084 17,801,789
(5,321,027) (575,732) (5,896,759)
635,098 68,717 703,815
13,177,009 1,425,745 14,602,754
82,883,531 11,130,265 94,013,796
96,060,540$ 12,556,010$ 108,616,550$
4,821,513$ 521,685$ 5,343,198$
95.31%
14,163,049$
37.73%
2020
126
See independent auditors' report and accompanying notes to required supplementary information.
96
CITY OF LAKE FOREST
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
For the past five 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 2.50%
Salary increases
Investment rate of return 7.50%
Retirement Age
Mortality MP-2017 (base year 2015) Mortality Table
Other information:
There were no benefit changes during the year.
2016
3.35% to 14.25% including inflation
Experience-based table of rates that are specific to the type of eligibility
condition
Actuarially determined contribution rates are calculated as of December 31 of the year prior to the fiscal year in which
contributions are reported. Information is obtained from IMRF. More recent information is not available.
The City implemented GASB Statement No. 68 in fiscal year 2016. Information prior to fiscal year 2016 is not available.
Entry age normal
Level percentage of payroll, closed
24 years
5-Year Smoothed Market
127
See independent auditors' report and accompanying notes to required supplementary information.
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
128
See independent auditors' report and accompanying notes to required supplementary information.
98
CITY OF LAKE FOREST
ILLINOIS MUNICIPAL RETIREMENT FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
For the past five 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
129
See independent auditors' report and accompanying notes to required supplementary information.
99
City Library Total
1,217,957$ 131,782$ 1,349,739$
(1,224,123) (132,449) (1,356,572)
(6,166)$ (667)$ (6,833)$
14,612,252$
9.28%
2020
130
See independent auditors' report and notes to required supplementary information.
100
2015 2016 2017 2018 2019 2020
Total pension liability
Service cost 845,979$ 883,178$ 931,083$ 895,320$ 900,450$ 908,951$
Interest on total pension liability 3,219,893 3,657,765 3,660,514 3,908,626 4,051,210 4,435,870
Change on benefit terms 231,490
Differences between expected and
actual experience of the total pension liability 2,713 (2,129,040) 306,030 (39,964) 2,043,281 (1,297,619)
Changes of assumptions 3,568,719 - 1,248,764 - 3,709,450 2,226,349
Benefit payments, including refunds of member contributions (2,193,705) (2,320,588) (2,520,473) (2,611,864) (2,852,542) (2,888,907)
Other (16,057) - - - - -
Net change in total pension liability 5,427,542 91,315 3,625,918 2,152,118 7,851,849 3,616,134
Total pension liability - beginning 47,103,353 52,530,895 52,622,210 56,248,128 58,400,246 66,252,095
Total pension liability - ending (a)52,530,895$ 52,622,210$ 56,248,128$ 58,400,246$ 66,252,095$ 69,868,229$
Plan fiduciary net position
Employer contributions 1,706,203$ 1,806,270$ 1,895,500$ 2,094,124$ 2,504,581$ 2,589,534$
Employee contributions 360,156 373,216 371,695 379,500 392,258 404,985
Net investment income 1,669,508 (475,655) 2,635,379 2,064,885 1,716,441 158,632
Benefit payments, including refunds of member contributions (2,193,705) (2,320,588) (2,520,473) (2,611,864) (2,852,542) (2,888,907)
Administrative expenses (4,150) (4,835) (27,816) (34,158) (60,847) (52,355)
Net change in plan fiduciary net position 1,538,012 (621,592) 2,354,285 1,892,487 1,699,891 211,889
Plan fiduciary net position - beginning 26,487,743 28,025,755 27,404,163 29,758,448 31,650,935 33,350,826
Plan fiduciary net position - ending (b)28,025,755$ 27,404,163$ 29,758,448$ 31,650,935$ 33,350,826$ 33,562,715$
City's net pension liability - ending (a) - (b)24,505,140$ 25,218,047$ 26,489,680$ 26,749,311$ 32,901,269$ 36,305,514$
Plan fiduciary net position as a percentage of the total
pension liability 53.35%52.08%52.91%54.20%50.34%48.04%
Covered payroll 3,590,934$ 3,759,611$ 3,750,706$ 3,800,841$ 3,940,419$ 4,059,797$
City's net pension liability as a percentage of covered
payroll 682.42%670.76%706.26%703.77%834.97%894.27%
Notes to Schedule:
-The interest rate was updated from 6.75% to 6.50%
The Pension implemented GASB Statement No. 67 in fiscal year 2015. Information prior to fiscal year 2015 is not available.
CITY OF LAKE FOREST
Last Six Fiscal Years
SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY AND RELATED RATIOS
POLICE PENSION FUND
Changes of assumptions.
-The final average salary was increased
-The pensionable salary cap increased retroactive to 2011 to alleviate safe harbor concerns
-The surviving spouse benefit for non-line of duty death was updated to mirror Tier 1 benefits
For measurement date April 30, 2020, amounts reported as changes of assumptions resulted from the following changes:
131
See independent auditors' report and notes to required supplementary information.
101
CITY OF LAKE FOREST
POLICE PENSION FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Last Ten Fiscal Years
2011 2012 2013 2014
Actuarially determined contribution 1,405,652$ 1,372,431$ 1,375,906$ 1,384,307$
Contributions in relation to the actuarially
determined contribution 1,412,730 1,515,074 1,502,075 1,563,964
Contribution deficiency (excess)(7,078)$ (142,643)$ (126,169)$ (179,657)$
Covered payroll 3,322,493$ 3,359,679$ 3,170,518$ 3,518,797$
Contributions as a percentage of covered
payroll 42.52%45.10%47.38%44.45%
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
RP-2000 Combined Healthy Mortality with a blue collar adjustment,
projected to the valuation date using Scale BB.
4.94%
50-70
2.50%
6.50%, net of pension plan investment expense
Investment gains and losses are smoothed over a 5-
year period
Valuation date: Actuarially determined contributions are calculated as of May 1, two years prior to the year in which
contributions are reported.
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.
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);
21 years (as of 5/1/2020 valuation)
132
See independent auditors' report and notes to required supplementary information.
102
2015 2016 2017 2018 2019 2020
1,508,450$ 1,810,315$ 1,737,445$ 1,832,059$ 2,505,888$ 2,594,845$
1,706,203 1,806,270 1,895,500 2,094,124 2,504,581 2,589,534
(197,753)$ 4,045$ (158,055)$ (262,065)$ 1,307$ 5,311$
3,590,934$ 3,759,611$ 3,750,706$ 3,800,841$ 3,940,419$ 4,059,797$
47.51%48.04%50.54%55.10%63.56%63.78%
133
See independent auditors' report and notes to required supplementary information
103.
2015 2016 2017 2018 2019 2020
Annual money-weighted rate of return,
net of investment expense 6.79%-1.44%9.67%7.03%5.48%0.59%
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 Six Fiscal Years
POLICE PENSION FUND
CITY OF LAKE FOREST
134
See independent auditors' report and notes to required supplementary information.
104
CITY OF LAKE FOREST
FIREFIGHTERS' PENSION FUND
SCHEDULE OF CHANGES IN THE CITY'S NET PENSION LIABILITY AND RELATED RATIOS
Last Six Fiscal Years
2015 2016 2017 2018 2019 2020
Total pension liability
Service cost 912,154$ 926,420$ 860,148$ 854,245$ 891,741$ 876,151$
Interest on total pension liability 2,754,242 3,072,945 3,190,325 3,425,477 3,564,977 3,779,365
Changes in benefit terms 172,556
Differences between expected and actual experience
actual experience of the total pension liability (213,530) (186,474) 227,730 176,286 166,664 134,069
Changes of assumptions 2,024,054 - 1,401,097 - 3,101,793 1,900,513
Benefit payments, including refunds of member contributions (1,769,849) (1,931,047) (2,208,471) (2,419,682) (2,581,621) (2,712,864)
Net change in total pension liability 3,707,071 1,881,844 3,470,829 2,036,326 5,143,554 4,149,790
Total pension liability - beginning 40,231,243 43,938,314 45,820,158 49,290,987 51,327,313 56,470,867
Total pension liability - ending (a)43,938,314$ 45,820,158$ 49,290,987$ 51,327,313$ 56,470,867$ 60,620,657$
Plan fiduciary net position
Employer contributions 1,168,287$ 1,216,585$ 1,211,587$ 1,308,348$ 1,719,445$ 1,822,064$
Employee contributions 296,676 297,946 290,383 296,202 311,675 330,725
Net investment income 1,871,817 60,335 3,053,497 2,897,100 3,032,134 988,063
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) (2,712,864)
Administrative expenses (4,150) (4,835) (34,006) (35,547) (52,598) (44,220)
Net change in plan fiduciary net position 1,562,781 (360,916) 2,312,990 2,046,421 2,429,035 383,768
Plan fiduciary net position - beginning 30,695,209 32,257,990 31,897,074 34,210,064 36,256,485 38,685,520
Plan fiduciary net position - ending (b)32,257,990$ 31,897,074$ 34,210,064$ 36,256,485$ 38,685,520$ 39,069,288$
City's net pension liability - ending (a) - (b)11,680,324$ 13,923,084$ 15,080,923$ 15,070,828$ 17,785,347$ 21,551,369$
Plan fiduciary net position as a percentage of the total
pension liability 73.42%69.61%69.40%70.64%68.51%64.45%
Covered payroll 3,111,216$ 2,924,893$ 3,071,211$ 3,237,410$ 3,338,448$ 3,440,901$
City's net pension liability as a percentage of covered
payroll 375.43%476.02%491.04%465.52%532.74%626.33%
Notes to Schedule:
-The interest rate was updated from 6.75% to 6.50%
The Pension implemented GASB Statement No. 67 in fiscal year 2015. Information prior to fiscal year 2015 is not available.
-The final average salary was increased
Changes of assumptions.
For measurement date April 30, 2020, amounts reported as changes of assumptions resulted from the following changes:
-The surviving spouse benefit for non-line of duty death was updated to mirror Tier 1 benefits
-The pensionable salary cap increased retroactive to 2011 to alleviate safe harbor concerns
135
See independent auditors' report and notes to required supplementary information.
105
CITY OF LAKE FOREST
FIREFIGHTERS' PENSION FUND
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Last Ten Fiscal Years
2011 2012 2013 2014
Actuarially determined contribution 954,946$ 862,452$ 894,551$ 894,384$
Contributions in relation to the actuarially
determined contribution 960,850 983,298 1,026,345 1,090,695
Contribution deficiency (excess)(5,904)$ (120,846)$ (131,794)$ (196,311)$
Covered payroll 2,644,320$ 2,941,767$ 3,049,732$ 3,004,889$
Contributions as a percentage of covered
payroll 36.34%33.43%33.65%36.30%
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 RP-2000 Combined Healthy Mortality with a blue collar adjustment,
projected to the valuation date using Scale BB.
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
Level percentage of payroll, closed
5-year average market value
5.85%
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); 21 years (as of
5/1/2020 valuation)
136
See independent auditors' report and notes to required supplementary information.
106
2015 2016 2017 2018 2019 2020
950,325$ 1,217,702$ 1,137,826$ 1,298,188$ 1,721,953$ 1,826,568$
1,168,287 1,216,585 1,211,587 1,308,348 1,719,445 1,822,064
(217,962)$ 1,117$ (73,761)$ (10,160)$ 2,508$ 4,504$
3,111,216$ 2,924,893$ 3,071,211$ 3,237,410$ 3,388,448$ 3,440,901$
37.55%41.59%39.45%40.41%50.74%52.95%
137
See independent auditors' report and notes to required supplementary information.
107
CITY OF LAKE FOREST
FIREFIGHTERS' PENSION FUND
SCHEDULE OF INVESTMENT RETURNS
Last Six Fiscal Years
2015 2016 2017 2018 2019 2020
Annual money-weighted rate of return,
net of investment expense 6.48%0.26%9.66%8.65%8.56%2.63%
Notes to Schedule:
The Pension implemented GASB Statement No. 67 in fiscal year 2015. Information prior to fiscal year 2015 is not
available.
138
See independent auditors' report and notes to required supplementary information.
108
CITY OF LAKE FOREST
OTHER POSTEMPLOYMENT BENEFITS PLAN
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY
AND RELATED RATIOS
Two Most Recent Fiscal Years
City Library City Library
Total OPEB liability
Service cost 46,323$ 1,620$ 49,721$ 1,718$
Interest 93,093 8,019 89,145 7,379
Changes of assumptions 32,177 1,221 365,319 6,686
Benefit payments, including refunds of member contributions (157,993) (16,545) (171,388) (19,768)
Net change in total OPEB liability 13,600 (5,685) 332,797 (3,985)
Total OPEB liability - beginning 2,423,911 210,250 2,437,511 204,565
Total OPEB liability - ending 2,437,511$ 204,565$ 2,770,308$ 200,580$
Plan fiduciary net position as a percentage of the total
OPEB liability 0.00%0.00%0.00%0.00%
Covered payroll 20,233,763$ 1,467,746$ 20,794,094$ 1,382,150$
City's total OPEB liability as a percentage of covered payroll 12.05%13.94%13.32%14.51%
Notes to Schedule:
The City implemented GASB Statement No. 75 in fiscal year 2019. Information prior to fiscal year 2019 is not available.
20202019
139
CITY OF LAKE FOREST
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended April 30, 2020
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.
109 140
SUPPLEMENTARY INFORMAT ION
141
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.
142
CITY OF LAKE FOREST
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
As of April 30, 2020
Special Revenue Funds
Police Restricted
Foreign Fire
Insurance Tax
Emergency
Telephone
Parks and Public
Land Motor Fuel Tax
ASSETS
Cash and cash equivalents $89,952 $263,004 $(154,583)$1,208,639 $1,699,086
Investments -----
Receivables (net)
Property taxes -----
Other 20 -753,618 --
Due from other governments ----58,808
Advances to other funds -----
Due from fiduciary funds -----
Prepaid items --28,689 --
TOTAL ASSETS $89,972 $263,004 $627,724 $1,208,639 $1,757,894
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND
BALANCES
Liabilities
Accounts payable $170 $-$1,496 $6,483 $-
Accrued liabilities -----
Deposits -----
Unearned revenues ---112,135 -
Due to other funds -----
Total Liabilities 170 -1,496 118,618 -
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 ---1,090,021 -
Restricted for highways and
streets ----1,756,550
Restricted for public safety 89,802 263,004 597,539 --
Restricted for cemetery
perpetual care -----
Restricted for affordable
housing -----
Restricted for debt service
purposes -----
Unassigned -----
Total Fund Balances 89,802 263,004 626,228 1,090,021 1,756,550
TOTAL LIABILITIES,
DEFERRED
INFLOWS OF
RESOURCES,
AN D FUND
BALANCES $89,972 $263,004 $627,724 $1,208,639 $1,757,894
110 143
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
$863,783 $178,438 $1,227,518 $1,780,133 $85,875 $7,241,845
7,077,796 ----7,077,796
---2,045,406 -2,045,406
-13,938 ---767,576
---88,684 -147,492
----380,000 380,000
167,340 ----167,340
-----28,689
$8,108,919 $192,376 $1,227,518 $3,914,223 $465,875 $17,856,144
$28,562 $33,789 $-$1,826 $85,875 $158,201
14,787 12,341 ---27,128
--18,000 --18,000
-----112,135
----1,123,104 1,123,104
43,349 46,130 18,000 1,826 1,208,979 1,438,568
---2,045,405 -2,045,405
-----1,344
---2,045,405 -2,046,749
-----28,689
-146,246 ---1,236,267
-----1,756,550
-----950,345
8,065,570 ----8,065,570
--1,209,518 --1,209,518
---1,866,992 -1,866,992
----(743,104)(743,104)
8,065,570 146,246 1,209,518 1,866,992 (743,104)14,370,827
$8,108,919 $192,376 $1,227,518 $3,914,223 $465,875 $17,856,144
111 144
CITY OF LAKE FOREST
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended April 30, 2020
Special Revenue Funds
Police
Restricted
Foreign Fire
Insurance Tax
Emergency
Telephone
Parks and
Public Land Motor Fuel Tax
REVENUES
Taxes:
Property $-$-$-$-$-
Other -----
Intergovernmental 5,215 ---714,970
Charges for services 33,660 128,257 438,038 15,668 -
Grants and contributions ---32,865 -
Investment income 1,619 3,585 8,228 22,055 23,901
Miscellaneous revenues -----
Total Revenues 40,494 131,842 446,266 70,588 738,871
EXPENDITURES
Current
General government -----
Culture and recreation ---129,496 -
Public safety 17,142 66,453 207,515 --
Capital Outlay --11,997 --
Debt Service
Principal retirement -----
Interest and fiscal charges -----
Total Expenditures 17,142 66,453 219,512 129,496 -
Excess (deficiency) of revenues
over expenditures 23,352 65,389 226,754 (58,908)738,871
OTHER FINANCING SOURCES
(USES)
Transfers in -----
Transfers out -----
Refunding debt issued -----
Premium on debt issued -----
Payments to refunding escrow -----
Total Other Financing
Sources (Uses)-----
Net Change in Fund
Balances 23,352 65,389 226,754 (58,908)738,871
FUND BALANCES (DEFICIT) -
Beginning of Year 66,450 197,615 399,474 1,148,929 1,017,679
FUND BALANCES
(DEFICIT) - END OF
YEAR $89,802 $263,004 $626,228 $1,090,021 $1,756,550
112 145
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
$-$-$-$1,908,461 $222,945 $2,131,406
--30,000 575,469 -605,469
-----720,185
699,549 121,392 ---1,436,564
29,570 204,437 -147,604 -414,476
484,879 3,814 24,210 43,323 43 615,657
453 2,442 ---2,895
1,214,451 332,085 54,210 2,674,857 222,988 5,926,652
647,553 -184,500 103,656 100,343 1,036,052
-534,348 ---663,844
-----291,110
268,423 60,418 --500,000 840,838
---1,730,850 -1,730,850
---1,202,730 -1,202,730
915,976 594,766 184,500 3,037,236 600,343 5,765,424
298,475 (262,681)(130,290)(362,379)(377,355)161,228
-246,882 -486,972 -733,854
----(362,063)(362,063)
---10,751,022 -10,751,022
---797,619 -797,619
---(11,445,875)-(11,445,875)
-246,882 -589,738 (362,063)474,557
298,475 (15,799)(130,290)227,359 (739,418)635,785
7,767,095 162,045 1,339,808 1,639,633 (3,686)13,735,042
$8,065,570 $146,246 $1,209,518 $1,866,992 $(743,104)$14,370,827
113 146
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, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $8,500 $8,500 $5,215 $(3,285)
Charges for services 24,200 24,200 33,660 9,460
Investment income 1,950 1,950 1,619 (331)
Total Revenues 34,650 34,650 40,494 5,844
EXPENDITURES
Current
Public safety 88,459 88,459 17,142 71,317
Contingency 8,846 8,846 -8,846
Total Expenditures 97,305 97,305 17,142 80,163
Net Change in Fund Balance $(62,655)$(62,655)23,352 $86,007
FUND BALANCE - Beginning of Year 66,450
FUND BALANCE - END OF YEAR $89,802
114 147
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, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Charges for services $54,000 $54,000 $128,257 $74,257
Investment income --3,585 3,585
Total Revenues 54,000 54,000 131,842 77,842
EXPENDITURES
Current
Public safety 100,000 100,000 66,453 33,547
Total Expenditures 100,000 100,000 66,453 33,547
Net Change in Fund Balance $(46,000)$(46,000)65,389 $111,389
FUND BALANCE - Beginning of Year 197,615
FUND BALANCE - END OF YEAR $263,004
115 148
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, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Charges for services $246,000 $246,000 $438,038 $192,038
Investment income 5,000 5,000 8,228 3,228
Total Revenues 251,000 251,000 446,266 195,266
EXPENDITURES
Current
Public safety 219,800 219,800 207,515 12,285
Capital Outlay 11,997 11,997 11,997 -
Contingency 23,180 23,180 -23,180
Total Expenditures 254,977 254,977 219,512 35,465
Net Change in Fund Balance $(3,977)$(3,977)226,754 $230,731
FUND BALANCE - Beginning of Year 399,474
FUND BALANCE - END OF YEAR $626,228
116 149
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, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Grants and contributions $280,000 $280,000 $32,865 $(247,135)
Charges for services 86,806 86,806 15,668 (71,138)
Investment income 15,566 15,566 22,055 6,489
Total Revenues 382,372 382,372 70,588 (311,784)
EXPENDITURES
Current
Culture and recreation 560,000 960,000 129,496 830,504
Contingency 103,500 103,500 -103,500
Capital Outlay 75,000 75,000 -75,000
Total Expenditures 738,500 1,138,500 129,496 1,009,004
Net Change in Fund Balance $(356,128)$(756,128)(58,908)$697,220
FUND BALANCE - Beginning of Year 1,148,929
FUND BALANCE - END OF YEAR $1,090,021
117 150
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, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Intergovernmental $505,762 $505,762 $714,970 $209,208
Investment income 25,335 25,335 23,901 (1,434)
Total Revenues 531,097 531,097 738,871 207,774
EXPENDITURES
Current
Capital Outlay -32,533 -32,533
Contingency 3,253 3,253 -3,253
Total Expenditures 3,253 35,786 -35,786
Net Change in Fund Balance $527,844 $495,311 738,871 $243,560
FUND BALANCE - Beginning of Year 1,017,679
FUND BALANCE - END OF YEAR $1,756,550
118 151
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, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Grants and contributions $532,000 $532,000 $29,570 $(502,430)
Charges for services 677,600 677,600 699,549 21,949
Investment income 50,000 50,000 484,879 434,879
Miscellaneous revenues --453 453
Total Revenues 1,259,600 1,259,600 1,214,451 (45,149)
EXPENDITURES
Current
General government 661,467 665,267 647,553 17,714
Capital Outlay 2,395,000 2,535,610 268,423 2,267,187
Contingency 320,088 320,088 -320,088
Total Expenditures 3,376,555 3,520,965 915,976 2,604,989
Net Change in Fund Balance $(2,116,955)$(2,261,365)298,475 $2,559,840
FUND BALANCE - Beginning of Year 7,767,095
FUND BALANCE - END OF YEAR $8,065,570
119 152
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, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Grants and contributions $196,000 $196,000 $204,437 $8,437
Charges for services 170,625 170,625 121,392 (49,233)
Investment income 3,500 3,500 3,814 314
Miscellaneous revenues --2,442 2,442
Total Revenues 370,125 370,125 332,085 (38,040)
EXPENDITURES
Current
Culture and recreation 633,234 633,234 534,348 98,886
Capital Outlay --60,418 (60,418)
Contingency 63,323 63,323 -63,323
Total Expenditures 696,557 696,557 594,766 101,791
Excess (deficiency) of revenues over
(under) expenditures (326,432)(326,432)(262,681)63,751
OTHER FINANCING SOURCES
Transfers in 265,722 265,722 246,882 (18,840)
Total Other Financing Sources 265,722 265,722 246,882 (18,840)
Net Change in Fund Balance $(60,710)$(60,710)(15,799)$44,911
FUND BALANCE - Beginning of Year 162,045
FUND BALANCE - END OF YEAR $146,246
120 153
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, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Other taxes $36,000 $36,000 $30,000 $(6,000)
Investment income 32,640 32,640 24,210 (8,430)
Total Revenues 68,640 68,640 54,210 (14,430)
EXPENDITURES
Current
General government 200,000 380,000 184,500 195,500
Contingency 38,000 38,000 -38,000
Total Expenditures 238,000 418,000 184,500 233,500
Net Change in Fund Balance $(169,360)$(349,360)(130,290)$219,070
FUND BALANCE - Beginning of Year 1,339,808
FUND BALANCE - END OF YEAR $1,209,518
121 154
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, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Taxes
Property $1,896,174 $1,896,174 $1,908,461 $12,287
Other taxes 606,000 606,000 575,469 (30,531)
Grants and contributions 147,055 147,055 147,604 549
Investment income 40,688 40,688 43,323 2,635
Total Revenues 2,689,917 2,689,917 2,674,857 (15,060)
EXPENDITURES
Current
General government 3,750 3,750 103,656 (99,906)
Debt service
Principal retirement 1,730,850 1,730,850 1,730,850 -
Interest and fiscal charges 1,202,720 1,202,720 1,202,730 (10)
Total Expenditures 2,937,320 2,937,320 3,037,236 (99,916)
Excess (deficiency) of revenues over
(under) expenditures (247,403)(247,403)(362,379)(114,976)
OTHER FINANCING SOURCES
(USES)
Transfers in 362,063 362,063 486,972 124,909
Refunding debt issued --10,751,022 10,751,022
Premium on debt issued --797,619 797,619
Payments to refunding escrow --(11,445,875)(11,445,875)
Total Other Financing Sources
(Uses)362,063 362,063 589,738 227,675
Net Change in Fund Balance $114,660 $114,660 227,359 $112,699
FUND BALANCE - Beginning of Year 1,639,633
FUND BALANCE - END OF YEAR $1,866,992
122 155
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, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Property $327,930 $327,930 $222,945 $(104,985)
Investment income --43 43
Total Revenues 327,930 327,930 222,988 (104,942)
EXPENDITURES
Current
General government 146,881 146,881 100,343 46,538
Capital Outlay 700,000 700,000 500,000 200,000
Contingency 120,894 120,894 -120,894
Total Expenditures 967,775 967,775 600,343 367,432
Excess (deficiency) of revenues over
(under) expenditures (639,845)(639,845)(377,355)262,490
OTHER FINANCING SOURCES
(USES)
Transfers out (362,063)(362,063)(362,063)-
Total Other Financing Sources
(Uses)(362,063)(362,063)(362,063)-
Net Change in Fund Balance $(1,001,908)$(1,001,908)(739,418)$262,490
FUND BALANCE (DEFICIT) - Beginning
of Year (3,686)
FUND BALANCE (DEFICIT) - END
OF YEAR $(743,104)
123 156
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, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
REVENUES
Taxes
Property $1,739,989 $1,739,989 $1,734,563 $(5,426)
Other taxes 2,007,331 2,007,331 1,745,882 (261,449)
Grants and contributions 92,336 92,336 488,335 395,999
Charges for services 74,210 74,210 73,068 (1,142)
Investment income 128,136 128,136 174,342 46,206
Miscellaneous 5,000 5,000 43,520 38,520
Fines, forfeitures and penalties --750 750
Total Revenues 4,047,002 4,047,002 4,260,460 213,458
EXPENDITURES
Current
General government 1,306,555 2,040,644 1,063,722 976,922
Highways and streets 1,540,000 1,180,264 1,090,137 90,127
Sanitation --44,025 (44,025)
Culture and recreation 100,000 100,000 82,267 17,733
Capital Outlay 4,284,419 5,970,453 5,224,078 746,375
Contingency 929,136 929,136 -929,136
Total Expenditures 8,160,110 10,220,497 7,504,229 2,716,268
Excess (deficiency) of revenues over
(under) expenditures (4,113,108)(6,173,495)(3,243,769)2,929,726
OTHER FINANCING SOURCES
(USES)
Transfers in 1,500,000 1,500,000 3,593,323 2,093,323
Proceeds from capital asset sales 20,000 20,000 38,500 18,500
Total Other Financing Sources
(Uses)1,520,000 1,520,000 3,631,823 2,111,823
Net Change in Fund Balance $(2,593,108)$(4,653,495)388,054 $5,041,549
FUND BALANCE - Beginning of Year 10,927,824
FUND BALANCE - END OF YEAR $11,315,878
124 157
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.
158
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, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
OPERATING REVENUES
Charges for services $8,160,786 $8,160,786 $7,629,656 $(531,130)
Connection fees 73,600 73,600 184,371 110,771
Miscellaneous 8,427 8,427 8,293 (134)
Total Operating Revenues 8,242,813 8,242,813 7,822,320 (420,493)
OPERATING EXPENSES
General and administrative 2,552,572 2,552,572 2,528,559 24,013
Operations and maintenance 2,959,728 3,318,465 2,158,200 1,160,265
Contingency 975,870 975,870 -975,870
Total Operating Expenses 6,488,170 6,846,907 4,686,759 2,160,148
NON-OPERATING REVENUES
(EXPENSES)
Investment income 226,955 226,955 166,288 (60,667)
Principal retirement (1,967,000)(1,967,000)(1,967,000)-
Interest expense (517,655)(517,655)(494,241)23,414
Paying agent fees (3,000)(3,000)(55,340)(52,340)
Other 500 500 -(500)
Total Non-Operating Revenues
(Expenses)(2,260,200)(2,260,200)(2,350,293)(90,093)
125 159
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, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
OPERATING REVENUES
Charges for services $1,815,784 $1,815,784 $1,458,127 $(357,657)
Miscellaneous 5,033 5,033 1,000 (4,033)
Total Operating Revenues 1,820,817 1,820,817 1,459,127 (361,690)
OPERATING EXPENSES
General and administrative 693,204 693,204 650,441 42,763
Operations and maintenance 1,299,091 1,299,091 888,673 410,418
Contingency 210,582 210,582 -210,582
Total Operating Expenses 2,202,877 2,202,877 1,539,114 663,763
NON-OPERATING REVENUES
(EXPENSES)
Investment income --9,681 9,681
Principal retirement (100,000)(100,000)(100,000)-
Interest expense (13,020)(13,020)(12,433)587
Paying agent fees (500)(500)(2,915)(2,415)
Other --6,451 6,451
Total Non-Operating Revenues
(Expenses)(113,520)(113,520)(99,216)14,304
126 160
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.
161
CITY OF LAKE FOREST
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
As of April 30, 2020
Fleet Self Insurance
Liability
Insurance Totals
ASSETS
Current Assets
Cash and cash equivalents $820,319 $4,906,811 $1,909,550 $7,636,680
Receivables
Other 1,128 24,396 3,247,850 3,273,374
Inventories 384,463 --384,463
Prepaid items --584,853 584,853
Total Current Assets 1,205,910 4,931,207 5,742,253 11,879,370
Noncurrent Assets
Capital assets (net of accumulated
depreciation)
Property and equipment 48,047 --48,047
Accumulated depreciation (48,047)--(48,047)
Total Assets 1,205,910 4,931,207 5,742,253 11,879,370
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to
pensions 113,512 --113,512
Deferred outflows related to total OPEB
liability 9,347 --9,347
Total Deferred Outflows of Resources 122,859 --122,859
LIABILITIES
Current Liabilities
Accounts payable 8,409 649,988 67,140 725,537
Accrued liabilities 28,222 569,284 135,599 733,105
Unearned revenue - Other 1,128 --1,128
Total Current Liabilities 37,759 1,219,272 202,739 1,459,770
Noncurrent Liabilities
Compensated absences 31,076 --31,076
Net pension liability 194,028 --194,028
Total OPEB liability 72,164 --72,164
Total Noncurrent Liabilities 297,268 --297,268
Total Liabilities 335,027 1,219,272 202,739 1,757,038
DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to
pensions 182,866 --182,866
Total Deferred Inflows of Resources 182,866 --182,866
NET POSITION
Unrestricted 810,876 3,711,935 5,539,514 10,062,325
TOTAL NET POSITION $810,876 $3,711,935 $5,539,514 $10,062,325
127 162
CITY OF LAKE FOREST
COMBINING STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
For the Year Ended April 30, 2020
Fleet Self Insurance
Liability
Insurance Totals
OPERATING REVENUES
Charges for services $1,810,237 $5,503,292 $2,183,006 $9,496,535
Total Operating Revenues 1,810,237 5,503,292 2,183,006 9,496,535
OPERATING EXPENSES
General and administrative 1,803,425 5,519,907 1,107,936 8,431,268
Depreciation and amortization 4,108 --4,108
Total Operating Expenses 1,807,533 5,519,907 1,107,936 8,435,376
Operating Income (Loss)2,704 (16,615)1,075,070 1,061,159
NONOPERATING REVENUES
Investment income 14,907 78,891 36,306 130,104
Total Nonoperating Revenues 14,907 78,891 36,306 130,104
Change in net position 17,611 62,276 1,111,376 1,191,263
NET POSITION - Beginning of Year 793,265 3,649,659 4,428,138 8,871,062
NET POSITION - END OF YEAR $810,876 $3,711,935 $5,539,514 $10,062,325
128 163
CITY OF LAKE FOREST
COMBINING STATEMENT OF CASH FLOW S
INTERNAL SERVICE FUNDS
For the Year Ended April 30, 2020
Fleet Self Insurance
Liability
Insurance Totals
CASH FLOWS FROM OPERATING
AC TIVITIES
Receipts from interfund services provided $1,812,248 $5,485,326 $1,327,356 $8,624,930
Paid to suppliers for goods and services (1,337,346)(5,397,597)(1,150,782)(7,885,725)
Paid to employees for services (506,512)--(506,512)
Net Cash Flows From Operating
Activities (31,610)87,729 176,574 232,693
CASH FLOWS FROM INVESTING
AC TIVITIES
Interest received 14,907 78,891 36,306 130,104
Net Cash Flows From Investing Activities 14,907 78,891 36,306 130,104
Net Change in Cash and Cash
Equivalents (16,703)166,620 212,880 362,797
CASH AND CASH EQUIVALENTS - Beginning
of Year 837,022 4,740,191 1,696,670 7,273,883
CASH AND CASH EQUIVALENTS - END
OF YEAR $820,319 $4,906,811 $1,909,550 $7,636,680
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH FLOWS
FROM OPERATING ACTIVITIES
Operating income (loss)$2,704 $(16,615)$1,075,070 $1,061,159
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Flows From
Operating Activities
Depreciation 4,108 --4,108
Changes in assets and liabilities
Accounts receivable 883 (17,966)(855,650)(872,733)
Inventories (27,660)--(27,660)
Prepaid items --(32,190)(32,190)
Deferred outflows related to pensions 217,183 --217,183
Accounts payable (40,388)121,132 5,423 86,167
Accrued liabilities 4,981 1,178 (16,079)(9,920)
Net pension liability (326,604)--(326,604)
Deferred inflows related to pensions 137,115 --137,115
Deferred revenue 1,128 --1,128
Compensated absences (2,780)--(2,780)
Deferred outflows related to total OPEB
liability (8,556)--(8,556)
Total OPEB liability 6,276 --6,276
NET CASH FLOWS FROM
OPERATING ACTIVITIES $(31,610)$87,729 $176,574 $232,693
NONCASH CAPITAL AND RELATED
FINANCING ACTIVITIES
None
129 164
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, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
OPERATING REVENUES
Charges for services $1,809,638 $1,809,638 $1,810,237 $599
Total Operating Revenues 1,809,638 1,809,638 1,810,237 599
OPERATING EXPENSES
General and administrative 1,905,638 1,914,638 1,803,425 111,213
Contingency 191,464 191,464 -191,464
Total Operating Expenses 2,097,102 2,106,102 1,803,425 302,677
NON-OPERATING REVENUES
Investment income 15,000 15,000 14,907 (93)
130 165
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, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
OPERATING REVENUES
Charges for services $5,508,000 $5,508,000 $5,503,292 $(4,708)
Total Operating Revenues 5,508,000 5,508,000 5,503,292 (4,708)
OPERATING EXPENSES
General and administrative 5,997,000 5,997,000 5,519,907 477,093
Contingency 599,700 599,700 -599,700
Total Operating Expenses 6,596,700 6,596,700 5,519,907 1,076,793
NON-OPERATING REVENUES
Investment income 104,040 104,040 78,891 (25,149)
131 166
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, 2020
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
OPERATING REVENUES
Charges for services $1,327,348 $1,327,348 $2,183,006 $855,658
Total Operating Revenues 1,327,348 1,327,348 2,183,006 855,658
OPERATING EXPENSES
General and administrative 1,254,744 1,254,744 1,107,936 146,808
Contingency 125,474 125,474 -125,474
Total Operating Expenses 1,380,218 1,380,218 1,107,936 272,282
NON-OPERATING REVENUES
Investment income 40,800 40,800 36,306 (4,494)
132 167
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.
.
168
CITY OF LAKE FOREST
COMBINING STATEMENT OF FIDUCIARY NET POSITION
PENSION TRUST FUNDS
As of April 30, 2020
Police Pension
Firefighters'
Pension Totals
ASSETS
Cash $388,961 $270,236 $659,197
Money markets 737,089 -737,089
Investments
U.S. Treasury obligations 8,937,039 4,713,661 13,650,700
U.S. Government agencies 270,051 3,717,947 3,987,998
Municipal/corporate bonds 2,606,172 6,542,188 9,148,360
Mutual funds 16,696,005 23,720,256 40,416,261
Real estate investment fund 3,824,762 -3,824,762
Receivables 58,954 111,348 170,302
Prepaids 4,000 4,528 8,528
Due from primary government 46,146 26,034 72,180
Total Assets 33,569,179 39,106,198 72,675,377
LIABILITIES
Accounts payable 6,463 36,910 43,373
Total Liabilities 6,463 36,910 43,373
NET POSITION
Held in trust for pension benefits $33,562,716 $39,069,288 $72,632,004
133 169
CITY OF LAKE FOREST
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
PENSION TRUST FUNDS
For the Year Ended April 30, 2020
Police Pension
Firefighters'
Pension Total
AD DITIONS
Contributions
Employer $2,589,534 $1,822,064 $4,411,598
Employee 404,985 330,725 735,710
Total Contributions 2,994,519 2,152,789 5,147,308
Interest
Interest 632,456 825,823 1,458,279
Net appreciation in fair value of investments (401,182)245,490 (155,692)
Total Investment Income 231,274 1,071,313 1,302,587
Less Investment expense 72,639 83,475 156,114
Net investment income 158,635 987,838 1,146,473
Miscellaneous -226 226
Total Additions 3,153,154 3,140,853 6,294,007
DEDUCTIONS
Pension benefits and refunds 2,888,907 2,712,864 5,601,771
Other administrative expenses 52,357 44,221 96,578
Total Deductions 2,941,264 2,757,085 5,698,349
Change in Net Position 211,890 383,768 595,658
NET POSITION - Beginning of Year 33,350,826 38,685,520 72,036,346
NET POSITION - END OF YEAR $33,562,716 $39,069,288 $72,632,004
134 170
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, 2020
2020
Original Budget Final Budget Actual
Variance with
Final Budget
Additions
Contributions
Employer $2,594,845 $2,594,845 $2,589,534 $(5,311)
Employee 390,000 390,000 404,985 14,985
Total contributions 2,984,845 2,984,845 2,994,519 9,674
Investment Income
Interest 650,000 650,000 632,456 (17,544)
Net appreciation in fair value of
investments 1,600,000 1,600,000 (401,182)(2,001,182)
Total investment income 2,250,000 2,250,000 231,274 (2,018,726)
Less Investment expense 110,000 110,000 72,639 37,361
Net investment income 2,140,000 2,140,000 158,635 (1,981,365)
Total additions 5,124,845 5,124,845 3,153,154 (1,971,691)
Deductions
Pension benefits and refunds 3,150,000 3,150,000 2,888,907 261,093
Other administrative expenses 70,030 70,030 52,357 17,673
Contingency 286,988 286,988 -286,988
Total deductions 3,507,018 3,507,018 2,941,264 565,754
Change in net position $1,617,827 $1,617,827 211,890 $(1,405,937)
Net position, beginning of year 33,350,826
Net position, end of year $33,562,716
135 171
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, 2020
2020
Original Budget Final Budget Actual
Variance with
Final Budget
Additions
Contributions
Employer $1,826,568 $1,826,568 $1,822,064 $(4,504)
Employee 315,000 315,000 330,725 15,725
Total contributions 2,141,568 2,141,568 2,152,789 11,221
Investment Income
Interest 800,000 800,000 825,823 25,823
Net appreciation in fair value of
investments 1,760,000 1,760,000 245,490 (1,514,510)
Total investment income 2,560,000 2,560,000 1,071,313 (1,488,687)
Less Investment expense 60,000 60,000 83,475 (23,475)
Net investment income 2,500,000 2,500,000 987,838 (1,512,162)
Miscellaneous --226 226
Total additions 4,641,568 4,641,568 3,140,853 (1,500,715)
Deductions
Pension benefits and refunds 2,750,000 2,750,000 2,712,864 37,136
Other administrative expenses 55,030 55,030 44,221 10,809
Contingency 275,988 275,988 -275,988
Total deductions 3,081,018 3,081,018 2,757,085 323,933
Change in net position $1,560,550 $1,560,550 383,768 $(1,176,782)
Net position, beginning of year 38,685,520
Net position, end of year $39,069,288
136 172
Discretely Presented Component Unit
Lake Forest Library –General Fund –This fund accounts for the operation and maintenance of the
Lake Forest Library. Financing is provided by a specific annual property tax levy, charges for services,
fines and forfeits, interest earned on investments and other miscellaneous revenues.
173
137
CITY OF LAKE FOREST
Discretely Presented Component Unit - Lake Forest Library
Statement of Net Position and General Fund Balance Sheet
General Statement of
Fund Adjustments Net Position
Assets and Deferred Outflows of Resources
Cash and cash equivalents 5,455,932$ -$ 5,455,932$
uncollectibles)
4,218,857 - 4,218,857
5,172 - 5,172
Capital assets not depreciated - 238,500 238,500
Capital assets depreciated, net of
accumulated depreciation - 2,609,761 2,609,761
9,679,961 2,848,261 12,528,222
Deferred outflows of Resources
Deferred outflows related to pensions - 309,155 309,155
Deferred outflows related to total OPEB liability - 6,953 6,953
Total deferred outflows of resources - 316,108 316,108
Total Assets and Deferred Outflows of
Resources 9,679,961$ 3,164,369$ 12,844,330$
Liabilities, Deferred Inflows of Resources,
and Fund Balance/Net Position
Liabilities
47,342$ -$ 47,342$
118,271 - 118,271
Long-term obligations
Due within one year - 39,410 39,410
Due in more than one year - 914,732 914,732
Total liabilities 165,613 954,142 1,119,755
Deferred Inflows of Resources
Property taxes levied for future periods 4,218,857 - 4,218,857
Deferred inflows related to pensions - 491,673 491,673
Total deferred inflows of resources 4,218,857 491,673 4,710,530
Fund Balance/Net Position
Nonspendable - prepaids - -
Unassigned 5,295,491 (5,295,491) -
Net position
Net investment in capital assets - 2,765,786 2,765,786
Unrestricted - 4,248,259 4,248,259
Total fund balance/net position 5,295,491 1,718,554 7,014,045
Total Liabilities, Deferred Inflows of
Resources, and Fund Balance/Net
Position 9,679,961$ 3,164,369$ 12,844,330$
Accounts payable
Accrued liabilities
As of April 30, 2020
Property taxes
Receivables (net of allowance for
Other taxes
Total assets
Capital assets
174
138
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, 2020
Statement
General of
Fund Adjustments Activities
Revenues
4,158,792$ -$ 4,158,792$
39,040 - 39,040
138,661 - 138,661
28,880 - 28,880
Fines 8,959 - 8,959
111,476 - 111,476
4,485,808 - 4,485,808
Expenditures/expenses
Current 3,524,944 288,254 3,813,198
Capital Outlay 123,058 (123,058) -
Debt Service 25,102 (25,102) -
Total expenditures/expenses 3,673,104 140,094 3,813,198
Net change in fund balance/net position 812,704 (140,094) 672,610
Other financing sources/(uses)
Capital lease proceeds 105,225 (105,225) -
Total other financing sources (uses)105,225 (105,225) -
Excess (deficiency) of revenues and
other financing sources over expenditures
and other financing (uses)917,929 (245,319) 672,610
4,377,562 1,963,873 6,341,435
Fund balance/net position, end of year 5,295,491$ 1,718,554$ 7,014,045$
Fund balance/net position, beginning of year
Property taxes
Charges for services
Total revenues
Intergovernmental
Grants and contributions
Investment Income
175
139
CITY OF LAKE FOREST
Summary of Debt Service Requirements to Maturity
As of April 30, 2020
General
Fiscal Obligation
year Bonds
2021 5,486,553$
2022 5,366,165
2023 5,376,076
2024 4,986,035
2025 2,973,377
2026 2,980,327
2027 2,967,202
2028 2,981,652
2029 3,592,403
2030 3,613,538
2031 3,736,488
2032 3,684,163
2033 3,649,325
2034 2,402,563
2035 1,149,063
2036 1,150,250
2037 1,145,275
2038 786,600
Total 58,027,055$
176
140
CITY OF LAKE FOREST
Debt Service Requirements to Maturity - General Obligation Bonds
As of April 30, 2020
Year Principal Interest Principal Interest Principal Interest
2021 70,000$ 6,275$ 18,839$ 1,987$ 130,663$ 19,280$
2022 75,000 4,350 19,743 1,365 136,870 15,034
2023 75,000 2,213 20,701 704 143,508 10,448
2024 - - - - 150,611 5,497
2025 - - - - - -
2026 - - - - - -
2027 - - - - - -
2028 - - - - - -
2029 - - - - - -
2030 - - - - - -
2031 - - - - - -
2032 - - - - - -
2033 - - - - - -
2034 - - - - - -
2035 - - - - - -
2036 - - - - - -
2037 - - - - - -
2038 - - - - - -
220,000$ 12,838$ 59,283$ 4,056$ 561,652$ 50,259$
Fiscal
Tax Bonds Tax Bonds Tax Bonds
Special Service Area 25 Special Service Area 26 Special Service Area 29
177
141
CITY OF LAKE FOREST
Debt Service Requirements to Maturity - General Obligation Bonds
As of April 30, 2020
Year Principal Interest Principal Interest Principal Interest
2021 140,000$ 3,150$ 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 - - - - - -
140,000$ 3,150$ 8,885,000$ 2,863,173$ 9,065,000$ 2,928,752$
Fiscal
Series 20152011 Series A Series 2013
Obligation Bonds Obligation Bonds Obligation Bonds
178
142
CITY OF LAKE FOREST
Debt Service Requirements to Maturity - General Obligation Bonds
As of April 30, 2020
Fiscal
Year Principal Interest Principal Interest Principal Interest Total
2021 -$ 271,153$ 2,750,000$ 740,393$ 3,844,502$ 1,642,051$ 5,486,553$
2022 - 271,153 2,875,000 611,213 3,881,613 1,484,553 5,366,166
2023 - 271,153 3,030,000 467,463 4,064,209 1,311,868 5,376,077
2024 515,000 271,153 2,370,000 315,963 3,855,611 1,130,425 4,986,036
2025 525,000 260,853 630,000 197,463 2,000,000 973,378 2,973,378
2026 535,000 247,728 660,000 165,963 2,075,000 905,328 2,980,328
2027 550,000 234,353 695,000 132,962 2,135,000 832,202 2,967,202
2028 565,000 220,603 730,000 98,213 2,225,000 756,653 2,981,653
2029 580,000 206,478 735,000 83,613 2,895,000 697,404 3,592,404
2030 590,000 191,688 755,000 68,912 3,000,000 613,538 3,613,538
2031 610,000 173,988 780,000 53,812 3,215,000 521,488 3,736,488
2032 630,000 155,688 810,000 37,237 3,265,000 419,163 3,684,163
2033 645,000 136,788 845,000 19,011 3,335,000 314,324 3,649,324
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$ 3,281,673$ 17,665,000$ 2,992,218$ 45,890,935$ 12,136,119$ 58,027,054$
Requirements
Series 2017 Series 2019 Total
Obligation Bonds Obilgation Bonds
179
143
CITY OF LAKE FOREST
Special Service Area 25 Special Tax Bonds – 2003 Series
April 30, 2020
Date of issue:May 1, 2003
Date of maturity:December 15, 2022
Authorized issue:$1,050,000
Denomination of bonds:$5,000
Interest rate:1.95-2.95%
Interest dates:June 15 and December 15
Payable at:Lake Forest Bank and Trust
Lake Forest, Illinois
Redeemable annually
on December 15 Amount
2020 70,000$
2021 75,000
2022 75,000
220,000$
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
220,000$ $12,838$ $232,838$
Coupons due on
180
144
CITY OF LAKE FOREST
Special Service Area 26 Special Tax Bonds – 2003 Series
April 30, 2020
Date of issue:October 7, 2003
Date of maturity:December 15, 2022
Authorized issue:$276,500
Denomination of bonds:One bond per maturity
Interest rates:2.5-3.4%
Interest dates:June 15 and December 15
Payable at:Lake Forest Bank and Trust
Lake Forest, Illinois
Redeemable annually
on December 15 Amount
2020 18,839$
2021 19,743
2022 20,701
59,283$
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
59,283$ 4,056$ 63,339$
Coupons due on
181
145
CITY OF LAKE FOREST
Special Service Area 29 Special Tax Bonds - 2004 Series
April 30, 2020
Date of issue:
Date of maturity:December 15, 2023
Authorized issue:$2,000,000
Denomination of bonds:One bond per maturity
Interest rates:2.55-3.65%
Interest dates:June 15 and December 15
Payable at:Lake Forest Bank and Trust
Lake Forest, Illinois
Redeemable annually
on December 15 Amount
2020 130,663$
2021 136,870
2022 143,508
2023 150,611
561,652$
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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 150,611 5,497 156,108 2023 2,749 2023 2,748
561,652$ 50,259$ 611,911$
Coupons due on
December 20, 2004
182
146
CITY OF LAKE FOREST
General Obligation Bonds – 2011A
April 30, 2020
Date of issue:
Date of maturity:December 15, 2020
Authorized issue:$2,415,000
Denomination of bonds:$5,000
Interest rates:1.50 - 3.00%
Interest dates:June 15 and December 15
Payable at:Wells Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2020 140,000$
140,000$
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2019 140,000$ 3,150$ 143,150$ 2020 1,575$ 2020 1,575$
140,000$ 3,150$ 143,150$
September 6, 2011
Coupons due on
183
147
CITY OF LAKE FOREST
General Obligation Bonds – 2013
April 30, 2020
Date of issue:
Date of maturity:December 15, 2032
Authorized issue:$9,715,000
Denomination of bonds:$5,000
Interest rates:2.00 - 4.00%
Interest dates:June 15 and December 15
Payable at:Wells Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2020 430,000$
2021 435,000
2022 440,000
2023 450,000
2024 460,000
Thereafter 6,670,000
8,885,000$
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
2023 460,000 272,562 732,562 2024 136,281 2024 136,281
Thereafter 6,670,000 1,371,111 8,041,111 Thereafter 685,705 Thereafter 685,706
8,885,000$ 2,863,173$ 11,748,173$
September 16, 2013
Coupons due on
184
148
CITY OF LAKE FOREST
General Obligation Bonds – 2015
April 30, 2020
Date of issue:
Date of maturity:December 15, 2036
Authorized issue:$9,780,000
Denomination of bonds:$5,000
Interest rates:2.50 - 3.75%
Interest dates:June 15 and December 15
Payable at:Wells Fargo Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2020 305,000$
2021 340,000
2022 355,000
2023 370,000
2024 385,000
Thereafter 7,310,000
9,065,000$
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
2023 385,000 242,800 627,800 2024 121,587 2024 121,588
Thereafter 7,310,000 1,626,502 8,936,502 Thereafter 813,251 Thereafter 813,251
9,065,000$ 2,928,752$ 11,993,752$
August 3, 2015
Coupons due on
185
149
CITY OF LAKE FOREST
General Obligation Bonds – 2017
April 30, 2020
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
2020 $—
2021 —
2022 —
2023 515,000
2024 525,000
Thereafter 8,255,000
$9,295,000
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
2023 525,000 260,853 785,853 2024 130,426 2024 130,427
Thereafter 8,255,000 1,936,208 10,191,208 Thereafter 968,104 Thereafter 968,104
$9,295,000 $3,281,673 $12,576,673
June 5, 2017
Coupons due on
186
150
CITY OF LAKE FOREST
General Obligation Bonds – 2019
April 30, 2020
Date of issue:
Date of maturity:December 15, 2032
Authorized issue:$17,655,000
Denomination of bonds:$5,000
Interest rates:2.25 - 5.00%
Interest dates:June 15 and December 15
Payable at:Amalgamated Bank
Chicago, Illinois
Redeemable annually
on December 15 Amount
2020 2,750,000$
2021 2,875,000
2022 3,030,000
2023 2,370,000
2024 630,000
Thereafter 6,010,000
17,665,000$
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
2019 2,750,000$ 740,394$ 3,490,394$ 2020 370,197$ 2020 370,197$
2020 2,875,000 611,213 3,486,213 2021 305,606 2021 305,607
2021 3,030,000 467,462 3,497,462 2022 233,731 2022 233,731
2022 2,370,000 315,962 2,685,962 2023 157,981 2023 157,981
2023 630,000 197,462 827,462 2024 98,731 2024 98,731
Thereafter 6,010,000 659,725 6,669,725 Thereafter 329,862 Thereafter 329,863
17,665,000$ 2,992,218$ 20,657,218$
December 19, 2019
Coupons due on
187
151
CITY OF LAKE FOREST
Debt Service Fund
Combining Balance Sheet
As of April 30, 2020
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 17,499$ 5,514$ 8,411$ 1,626,025$
uncollectibles):
75,623 21,006 148,186 -
- - - 88,684
93,122$ 26,520$ 156,597$ 1,714,709$
Deferred inflows of resources
Property taxes levied to finance FY21 75,623 21,006 148,186 -
Liabilities
Accounts payable - - - 315
- - - 315
Fund Balance
Fund balance- restricted for
debt service 17,499 5,514 8,411 1,714,394
Total deferred inflows of resources, liabilities
and fund balances 93,122$ 26,520$ 156,597$ 1,714,709$
Receivables (net of allowance for
Property taxes
Total assets
Due from other governments
Total Liabilities
188
152
2009 2010 2013 2015
General General General General
Obligation Obligation Obligation Obligation
Bonds Bonds Bonds Bonds Total
35,382$ 51,796$ 30,888$ 4,618$ 1,780,133$
254,230 573,261 748,895 224,205 2,045,406
- - - - 88,684
289,612$ 625,057$ 779,783$ 228,823$ 3,914,223$
254,231 573,261 748,894 224,204 2,045,405
329 1,182 - - 1,826
329 1,182 - - 1,826
35,052 50,614 30,889 4,619 1,866,992
289,612$ 625,057$ 779,783$ 228,823$ 3,914,223$
189
153
CITY OF LAKE FOREST
Debt Service Fund
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended April 30, 2020
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 73,488$ 21,072$ 148,682$ -$
Other - - - 575,469
Grants and contributions- IRS rebate - - - -
Investment income 823 236 1,285 30,143
Total Revenues 74,311 21,308 149,967 605,612
Expenditures
General government - - - 13,855
Debt Service:
Principal 65,000 17,993 124,857 463,000
Interest 7,933 2,572 23,213 66,780
Total expenditures 72,933 20,565 148,070 543,635
Excess (deficiency) of revenues
over expenditures 1,378 743 1,897 61,977
Other financing sources:
Transfers in - - - 124,909
Transfers out - - - -
Refunding debt issued 1,856,022
Premium on debt issued - - - 166,231
Payments to refunding escrow - - - (2,007,819)
Total other financing sources (uses)- - - 139,343
Net change in fund balance 1,378 743 1,897 201,320
Fund balance- beginning of the year 16,121 4,771 6,514 1,513,074
Fund balance- end of the year 17,499$ 5,514$ 8,411$ 1,714,394$
190
154
2009 2010 2013 2015
General General General General
Obligation Obligation Obligation Obligation
Bonds Bonds Bonds Bonds Total
280,846$ 470,914$ 683,676$ 229,783$ 1,908,461$
- - - - 575,469
- 147,604 - - 147,604
2,296 3,460 3,990 1,090 43,323
283,142 621,978 687,666 230,873 2,674,857
20,623 67,428 750 1,000 103,656
190,000 215,000 350,000 305,000 1,730,850
88,195 399,599 329,763 284,675 1,202,730
298,818 682,027 680,513 590,675 3,037,236
(15,676) (60,049) 7,153 (359,802) (362,379)
- - - 362,063 486,972
- - - - -
1,935,000 6,960,000 - - 10,751,022
215,452 415,936 - - 797,619
(2,130,115) (7,307,941) - - (11,445,875)
20,337 67,995 - 362,063 589,738
4,661 7,946 7,153 2,261 227,359
30,391 42,668 23,736 2,358 1,639,633
35,052$ 50,614$ 30,889$ 4,619$ 1,866,992$
191
Statistical Section
Contents Page
Financial Trends 155 - 159
Revenue Capacity 160 - 167
Debt Capacity 168 - 172
Demographic and Economic Information 173 - 175
Operating Information 176 - 178
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.
192
155
CITY OF LAKE FOREST
Net Position by Component
Last Ten Fiscal Years
Fiscal Years 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Governmental Activities
Net Investment in Capital Assets 165,179,598$ 164,675,251$ 166,607,491$ 170,568,584$ 181,481,470$ 181,056,601$ 184,270,349$ 187,500,531$ 190,779,593$ 192,568,460$
Restricted 27,807,934 26,714,972 20,193,505 15,476,976 18,506,073 15,737,797 16,860,362 16,064,099 16,499,487 3,645,693
Unrestricted (18,261,240) (14,809,677) (11,006,718) (9,068,405) (18,479,928) 26,747,317 23,689,130 21,126,818 19,550,532 29,683,545
Total Governmental Activities Net Position 174,726,292$ 176,580,546$ 175,794,278$ 176,977,155$ 181,507,615$ 223,541,715$ 224,819,841$ 224,691,448$ 226,829,612$ 225,897,698$
Business-type Activities
Net Investment in Capital Assets 39,052,272$ 39,610,155$ 40,729,712$ 37,504,482$ 37,582,505$ 36,617,378$ 36,163,443$ 36,077,752$ 36,753,670$ 37,709,887$
Unrestricted 9,692,010 9,508,483 8,950,670 7,696,321 8,323,401 8,941,920 9,739,336 9,880,856 8,918,142 8,513,924
Total Business-type Activities Net Position 48,744,282$ 49,118,638$ 49,680,382$ 45,200,803$ 45,905,906$ 45,559,298$ 45,902,779$ 45,958,608$ 45,671,812$ 46,223,811$
Primary Government
Net Investment in Capital Assets 204,231,870$ 204,285,406$ 207,337,203$ 208,073,066$ 219,063,975$ 217,673,979$ 220,433,792$ 223,578,283$ 227,533,263$ 230,278,347$
Restricted 27,807,934 26,714,972 20,193,505 15,476,976 18,506,073 15,737,797 16,860,362 16,064,099 16,499,487 3,645,693
Unrestricted (8,569,230) (5,301,194) (2,056,048) (1,372,084) (10,156,527) 35,689,237 33,428,466 31,007,674 28,468,674 38,197,469
Total Primary Government Net Position 223,470,574$ 225,699,184$ 225,474,660$ 222,177,958$ 227,413,521$ 269,101,013$ 270,722,620$ 270,650,056$ 272,501,424$ 272,121,509$
*Beginning in 2016, the City implemented GASB 68 which resulted in the inclusion
of a net pension liability.
Data Source
Audited Financial Statements
193
156
CITY OF LAKE FOREST
Change in Net Position
Last Ten Fiscal Years
Fiscal Years 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Expenses
Governmental Activities
General Government 13,865,425$ 13,773,790$ 9,884,646$ 16,882,976$ 11,675,363$ 12,604,331$ 12,311,198$ 16,176,326$ 12,080,189$ 13,321,852$
Highway and Streets 8,677,958 9,081,471 9,621,569 10,923,639 9,230,548 8,839,231 7,762,403 7,536,444 8,304,860 8,687,404
Sanitation 2,678,876 2,580,043 2,585,940 2,611,231 2,208,326 2,474,355 2,586,125 2,512,559 2,568,820 2,349,916
Culture and Recreation 8,977,855 8,859,391 10,003,119 10,023,195 8,463,259 10,172,391 10,397,593 10,352,252 9,469,832 9,402,752
Public Safety 23,338,259 19,769,395 17,017,092 17,048,209 16,360,830 15,303,399 14,430,151 13,748,855 13,583,116 13,398,718
Interest 1,115,802 1,231,944 1,271,181 1,559,100 1,293,742 1,357,552 1,333,267 1,362,715 1,420,087 1,424,317
Total Governmental Activities Expenses 58,654,175$ 55,296,034$ 50,383,547$ 59,048,350$ 49,232,068$ 50,751,259$ 48,820,737$ 51,689,151$ 47,426,904$ 48,584,959$
Business-type Activities
Waterworks and sewerage 8,168,879 7,832,615 8,122,998 8,510,811 7,239,042 8,353,825 7,476,752 8,287,297 7,985,394 8,008,372
Golf 1,861,393 1,875,677 1,604,261 2,095,510 1,868,252 1,642,121 1,554,678 1,459,394 1,371,380 1,393,869
Total Business-type Activities Expenditures 10,030,272 9,708,292 9,727,259 10,606,321 9,107,294 9,995,946 9,031,430 9,746,691 9,356,774 9,402,241
Total Primary Government Expenses 68,684,447$ 65,004,326$ 60,110,806$ 69,654,671$ 58,339,362$ 60,747,205$ 57,852,167$ 61,435,842$ 56,783,678$ 57,987,200$
Program Revenue
Governmental Activities
Charges for Services
General Government 4,077,609$ 5,007,655$ 5,203,210$ 8,860,169$ 8,191,440$ 5,442,475$ 4,756,948$ 4,838,151$ 4,771,863$ 4,455,844$
Highways and Streets 2,183,456 2,730,122 1,006,644 782,953 990,840 710,795 741,334 753,487 846,366 693,029
Sanitation 1,040,121 749,620 721,276 734,111 697,435 682,062 77,147 58,564 81,577 171,030
Culture and Recreation 2,594,119 3,117,795 3,491,365 2,810,762 3,257,796 3,156,699 3,314,856 3,342,913 3,392,303 3,650,467
Public Safety 2,525,439 2,117,186 1,992,985 1,689,547 1,552,567 1,795,521 1,950,998 1,861,619 1,678,032 1,930,715
Operating Grants and Contributions 1,529,863 985,676 1,298,006 1,088,579 1,368,451 1,345,670 1,105,191 1,777,734 1,433,791 846,781
Capital Grants and Contributions 448,694 505,988 356,178 1,174,000 280,675 468,255 757,239 25,000 360,407 5,982,721
Total Governmental Activities Program
Revenues 14,399,301 15,214,042 14,069,664 17,140,121 16,339,204 13,601,477 12,703,713 12,657,468 12,564,339 17,730,587
Business-type activities
Charges for Services
Waterworks and sewerage 7,512,450 7,818,777 8,083,554 7,873,741 7,477,558 8,034,469 7,521,323 8,598,079 7,477,637 7,344,740
Golf 1,459,127 1,524,654 1,480,618 1,606,661 1,759,271 1,414,217 1,397,836 1,320,455 1,238,016 1,264,624
Operating Grants and Contributions - 228,332 - - - - - - - -
Capital Grants and Contributions - - - - - - - - - 162,051
Total Business-type Activities Program
Revenues 8,971,577 9,571,763 9,564,172 9,480,402 9,236,829 9,448,686 8,919,159 9,918,534 8,715,653 8,771,415
Total Primary Government Revenues 23,370,878$ 24,785,805$ 23,633,836$ 26,620,523$ 25,576,033$ 23,050,163$ 21,622,872$ 22,576,002$ 21,279,992$ 26,502,002$
Net (Expense) Revenue
Governmental Activities (44,254,874)$ (40,081,992)$ (36,313,883)$ (41,908,229)$ (32,892,864)$ (37,149,782)$ (36,117,024)$ (39,031,683)$ (34,862,565)$ (30,854,372)$
Business-type Activities (1,058,695) (136,529) (163,087) (1,125,919) 129,535 (547,260) (112,271) 171,843 (641,121) (630,826)
Total Primary Government Net Expense (45,313,569)$ (40,218,521)$ (36,476,970)$ (43,034,148)$ (32,763,329)$ (37,697,042)$ (36,229,295)$ (38,859,840)$ (35,503,686)$ (31,485,198)$
194
157
CITY OF LAKE FOREST
Change in Net Position (Cont.)
Last Ten Fiscal Years
Fiscal Years 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes
Property 28,569,827$ 27,591,773$ 26,193,444$ 25,928,864$ 25,006,224$ 24,468,769$ 23,744,650$ 25,051,411$ 25,428,378$ 24,739,956$
Sales 2,597,218 2,095,938 2,105,736 2,829,607 2,889,306 2,851,103 3,047,529 3,183,479 2,577,304 2,554,772
Income and Use 2,584,198 2,593,506 2,272,639 2,306,546 2,251,828 2,386,567 2,182,325 2,131,711 1,938,686 1,849,046
Telecommunications and Utility 3,170,895 3,603,381 3,440,365 3,596,175 3,551,491 3,954,001 4,026,972 3,736,586 3,981,548 3,968,072
Real Estate Transfer Tax 1,256,265 1,471,595 1,622,900 1,398,160 1,288,175 1,224,610 1,633,580 1,209,113 1,215,407 1,279,935
Other 2,717,862 2,410,453 2,178,246 636,368 514,231 534,625 581,443 493,418 492,746 422,080
Investment Earnings 1,664,355 2,215,202 1,665,391 1,042,049 145,329 547,118 637,193 491,196 264,432 573,508
Miscellaneous - - - - - 73,613 669,145 573,705 33,724 150,049
Gain (loss) on sale of assets 38,500 7,775 (3,874) - - - - - - -
Transfers (198,500) 786,850 (4,343,841) (360,000) (924,496) (168,750) (97,000) (77,100) (37,746) (102,150)
Total Government Activities 42,400,620 42,776,473 35,131,006 37,377,769 34,722,088 35,871,656 36,425,837 36,793,519 35,894,479 35,435,268
Business-type Activities
Investment Earnings 175,969$ 279,189$ 236,990$ 58,366$ 40,362$ 33,408 38,550 37,853 51,376 58,776
Other 309,870 299,176 61,835 2,450 6,033 1,621 - - - -
Transfers 198,500 (786,850) 4,343,841 360,000 924,496 168,750 97,000 77,100 37,746 102,150
Total Business-type Activities 684,339 (208,485) 4,642,666 420,816 970,891 203,779 135,550 114,953 89,122 160,926
Total Primary Government 43,084,959$ 42,567,988$ 39,773,672$ 37,798,585$ 35,692,979$ 36,075,435$ 36,561,387$ 36,908,472$ 35,983,601$ 35,596,194$
Change in Net Position
Governmental Activities (1,854,254)$ 2,694,481$ (1,182,877)$ (4,530,460)$ 1,829,224$ (1,278,126)$ 308,813$ (2,238,164)$ 1,031,914$ 4,580,896$
Business-type Activities (374,356) (345,014) 4,479,579 (705,103) 1,100,426 (343,481) 23,279 286,796 (551,999) (469,900)
Total Primary Government Change
in Net Position (2,228,610)$ 2,349,467$ 3,296,702$ (5,235,563)$ 2,929,650$ (1,621,607)$ 332,092$ (1,951,368)$ 479,915$ 4,110,996$
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.
195
158
CITY OF LAKE FOREST
Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Years 2020 2019 2018 2017 2016 2015 2014 2013 2012*2011
General Fund
Nonspendable 143,703$ 129,280$ 150,038$ 778,160$ 1,272,224$ 1,648,832$ 2,126,990$ 2,775,449$ 2,159,403$ -$
Restricted - - - - - 957,420 957,420 957,420 957,420 -
Unassigned 29,433,682 28,815,904 29,130,844 28,799,288 22,509,969 17,910,037 14,530,550 11,020,723 10,601,190 -
Reserved - - - - - - - - - 2,988,884
Unreserved - - - - - - - - - 9,239,135
Total General Fund 29,577,385 28,945,184 29,280,882 29,577,448 23,782,193 20,516,289 17,614,960 14,753,592 13,718,013 12,228,019
All other Governmental Funds
Nonspendable 29,139 32,837 28,688 536,121 408,539 381,173 - 43,333 43,333 -
Restricted 27,693,271 26,656,696 20,806,879 19,420,288 20,337,111 14,726,999 16,127,257 15,605,203 16,171,794 -
Assigned - - - - 1,456,053 1,448,736 1,449,284 1,598,819 1,591,600 -
Unassigned (743,104) (3,686) - - - (1,022,136) - - - -
Reserved - - - - - - - - - -
Special Revenue Funds - - - - - - - - - 4,333
Capital Project Funds - - - - - - - - - -
Debt Service Funds - - - - - - - - - 2,808,826
Unreserved, Reported in - - - - - - - - - -
Special Revenue Funds - - - - - - - - - 9,869,178
Capital Projects Funds - - - - - - - - - 6,189,372
Debt Service Funds - - - - - - - - - -
Total All other Governmental Funds 26,979,306 26,685,847 20,835,567 19,956,409 22,201,703 15,534,772 17,576,541 17,247,355 17,806,727 18,871,709
Total Governmental Funds 56,556,691$ 55,631,031$ 50,116,449$ 49,533,857$ 45,983,896$ 36,051,061$ 35,191,501$ 32,000,947$ 31,524,740$ 31,099,728$
*The City implemented GASB Statement #54 in FY2012.
Data Source
Audited Financial Statements
196
159
CITY OF LAKE FOREST
Change in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Fiscal Years 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Revenues
Property Taxes 28,569,827$ 27,591,773$ 26,193,444$ 25,928,864$ 25,006,224$ 24,468,769$ 23,744,650$ 25,051,411$ 25,428,378$ 24,739,956$
Other Taxes 4,702,203 4,775,587 4,786,506 4,609,057 4,317,316 4,641,466 11,471,849 10,754,307 10,205,691 10,073,905
Intergovenmental revenues 7,274,602 6,717,794 6,331,183 6,656,768 6,680,193 6,972,923 576,125 612,357 589,960 523,185
Grants and contributions 1,082,083 2,220,550 997,289 1,419,736 1,056,523 950,823 962,249 1,190,377 1,039,737 1,306,195
Charges for Services 8,749,224 8,759,327 8,833,079 8,005,317 8,506,756 7,935,973 7,373,500 7,319,673 7,028,800 7,427,784
Licenses and permits 2,954,115 3,456,703 3,232,276 5,157,398 5,222,568 2,821,066 2,477,338 2,450,194 2,475,739 2,246,336
Fines and forfeitures 271,985 355,304 345,438 321,168 260,407 287,333 297,005 368,941 372,607 409,539
Investment income 1,534,251 2,043,136 1,553,167 989,515 115,462 524,150 610,601 462,579 225,225 531,666
Miscellaneous revenue 1,360,723 1,511,534 1,831,152 841,731 779,137 790,344 759,384 1,225,082 730,813 1,074,576
Total Revenue 56,499,013 57,431,708 54,103,534 53,929,554 51,944,586 49,392,847 48,272,701 49,434,921 48,096,950 48,333,142
Expenditure
General Government 11,960,755$ 11,657,265$ 10,469,740$ 11,581,286$ 10,811,408$ 10,248,830 10,112,393 14,242,768 10,313,031 11,929,446
Highways and streets 3,393,599 4,577,657 2,354,587 3,118,461 2,157,463 2,371,461 2,293,840 2,044,225 2,139,656 2,449,911
Sanitation 2,619,476 2,480,420 2,290,986 2,311,435 2,276,433 2,235,135 2,212,166 2,193,091 2,228,844 2,194,511
Culture and recreation 9,398,508 9,319,869 8,853,547 8,532,289 8,338,284 8,457,043 8,686,298 9,282,695 8,463,547 8,559,331
Public Safety 18,456,208 16,900,348 15,520,779 15,126,874 15,090,712 14,469,408 14,299,583 13,826,732 13,723,801 13,291,727
Capital Outlay 6,753,993 3,971,995 8,746,881 5,439,469 10,992,926 7,582,668 5,527,772 4,586,574 6,641,923 6,348,572
Debt Service
Principal 1,730,850 1,429,625 1,782,156 7,906,696 1,791,579 1,623,436 1,400,950 1,377,736 2,531,876 15,659,313
Interest 1,202,730 1,242,498 1,277,596 1,639,191 1,293,634 1,400,609 1,319,276 1,392,342 1,667,372 1,284,755
Total Expenditures 55,516,119 51,579,677 51,296,272 55,655,701 52,752,439 48,388,590 45,852,278 48,946,163 47,710,050 61,717,566
Excess (Deficiency) of Revenues
over Expenditures 982,894 5,852,031 2,807,262 (1,726,147) (807,853) 1,004,257 2,420,423 488,758 386,900 (13,384,424)
Other Financing Sources (Uses)
Transfers in 4,627,667$ 7,280,685$ 4,799,274$ 7,776,661$ 2,846,321$ 2,020,085 3,224,306 2,829,243 2,296,270 1,844,410
Transfers out (4,826,167) (7,644,685) (7,050,020) (8,136,661) (2,895,321) (2,188,835) (3,321,306) (2,906,343) (2,334,016) (1,946,560)
Bonds issued - - - - 9,780,000 - - - - 18,090,000
Installment note proceeds - - - - - - - - - -
Loan proceeds - - - - 830,080 - - - - -
Premium (discount) on bonds issued 797,619 - - - 106,384 - 26,093 - 120,828 279,130
Proceeds from refunding G.O. bonds 10,751,022 - - - - - 9,715,000 - 5,690,000 -
Payments for refunding G.O. bonds (11,445,875) - - - - - (9,665,000) - (5,769,025) -
Sale of capital assets 38,500 26,551 26,076 5,636,108 73,224 24,053 791,038 64,549 34,055 1,067,630
Total Other Financing Sources (Uses)(57,234) (337,449) (2,224,670) 5,276,108 10,740,688 (144,697) 770,131 (12,551) 38,112 19,334,610
Net Change in Fund Balance 925,660$ 5,514,582$ 582,592$ 3,549,961$ 9,932,835$ 859,560$ 3,190,554$ 476,207$ 425,012$ 5,950,186$
Debt Service
as a Percentage of Non-Capital Expenditures 5.78%5.42%6.49%17.36%6.54%6.43%6.17%5.85%8.31%8.62%
197
160
CITY OF LAKE FOREST
Assessed Value and Actual Value of Taxable Property
Last Ten Levy Years
Levy Residential Commercial Industrial Other Tax Increment Total Taxable Total Direct Estimated Actual Estimated Actual
Year Property Property Property Property Financing Assessed Value Tax Rate Taxable Value Taxable Value
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%
2019 2,222,762,174 228,895,482 53,502 6,085,440 16,133,495 2,473,930,093 1.3721 7,421,790,279 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
198
161
Property Tax Rates - Direct and Overlapping Governments
Based on Shields Township
Last Ten Levy Years
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Bonds 0.096 0.068 0.071 0.088 0.090 0.067 0.059 0.060 0.066 0.074
Corporate 0.446 0.483 0.544 0.580 0.590 0.619 0.603 0.600 0.620 0.646
Firemen's Pension 0.037 0.041 0.046 0.052 0.054 0.053 0.050 0.061 0.065 0.077
IMRF 0.059 0.032 0.035 0.037 0.038 0.037 0.035 0.035 0.035 0.037
Library 0.116 0.126 0.141 0.152 0.155 0.153 0.146 0.145 0.149 0.157
Library Sites & Building 0.014 0.015 0.016 0.017 0.017 0.017 0.016 0.016 0.016 0.017
Parks/Park Maintenance 0.106 0.114 0.123 0.191 0.194 0.196 0.187 0.184 0.188 0.197
Playground & Recreation **0.046 0.050 0.055 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Police Pension 0.057 0.060 0.066 0.076 0.080 0.082 0.078 0.083 0.087 0.109
Recreation for Handicapped Rec.0.013 0.014 0.016 0.018 0.018 0.018 0.018 0.018 0.019 0.020
Social Security 0.032 0.035 0.037 0.038 0.037 0.035 0.035 0.035 0.037
City Direct Rates *0.990 1.035 1.148 1.248 1.274 1.279 1.227 1.237 1.280 1.371
Overlapping Rates
College of Lake County 0.218 0.240 0.272 0.296 0.306 0.299 0.285 0.281 0.282 0.282
County of Lake 0.505 0.554 0.608 0.663 0.682 0.663 0.632 0.622 0.612 0.597
Lake County Forest Preserve 0.198 0.201 0.212 0.218 0.210 0.208 0.193 0.187 0.182 0.180
North Shore Sanitary District 0.136 0.150 0.150 0.164 0.169 0.166 0.157 0.153 0.153 0.153
School District 67, Elem.1.095 1.186 1.322 1.424 1.452 1.429 1.367 1.355 1.391 1.472
School District 115, High School 1.101 1.191 1.322 1.420 1.450 1.409 1.329 1.314 1.336 1.375
Township 0.039 0.043 0.036 0.037 0.039 0.038 0.036 0.035 0.035 0.036
Township Road and Bridge 0.023 0.026 0.029 0.032 0.033 0.032 0.031 0.030 0.031 0.032
Total tax rate 4.305 4.626 5.099 5.502 5.615 5.523 5.257 5.214 5.302 5.498
City's share of total tax rate 23%22%23%23%23%23%23%24%24%25%
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
CITY OF LAKE FOREST
199
162
Taxable Percentage of Total Taxable Percentage of Total
Assessed City Taxable Assessed City Taxable
Taxpayer Value Rank Assessed Valuation Value Rank Assessed Valuation
Hospira Inc 16,958,984$ 1 0.69%19,257,700$ 1 0.71%
Abbot Laboratories 14,304,371 2 0.58%
Lake Forest Place LLC 12,953,908 3 0.52%17,554,847 2 0.65%
Kelmscott Park Apartments LLC 11,571,563 4 0.47%
Chicago Bears Football Club, Inc 10,293,126 5 0.42%
Pactiv Corporation 9,891,364 6 0.40%
Lake Forest Investments 7,618,557 7 0.31%7,310,626 7 0.27%
Lake Forest Landmark Co. LLC 6,746,974 8 0.27%5,707,515 8 0.21%
Riggs & Company 6,278,037 9 0.25%
Lake Forest Landmark II 6,002,873 10 0.24%
Lake Products, Inc 13,686,163 3 0.50%
CBIZ Property Tax Solutions 11,000,713 4 0.40%
Trustmark Insurance Co 8,174,867 5 0.30%
Lake Forest Hosptial 7,394,533 6 0.27%
James Campbell Company, LLC 5,540,903 9 0.20%
Shawgate Lake Forest, LLC 5,481,802 10 0.20%
102,619,757$ 4.15%101,109,669$ 3.72%
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.
2020 Column is 2019 Assessed Valuation
2011 Column is 2010 Assessed Valuation
2020 2011
CITY OF LAKE FOREST
Principal Property Taxpayers
Current Year and Nine Years Ago
200
163
Levy Percentage Subsequent Year Taxes Percentage
Year Tax Levied Amount of Levy Collections Received of Levy
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 32,533,539 32,427,323 99.67%1,981 32,429,304 99.68%
2019 33,723,648 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
CITY OF LAKE FOREST
Property Tax Levies and Collections
Last Ten Levy Years
Per Levy
201
164
CITY OF LAKE FOREST
Tax Extensions for City Funds
Last Ten Levy Years
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General 0.446 0.483 0.544 0.580 0.590 0.619 0.603 0.600 0.617 0.646
IMRF/Social Security 0.059 0.064 0.070 0.074 0.076 0.074 0.070 0.070 0.071 0.074
Firefighter Pension 0.037 0.041 0.046 0.052 0.054 0.053 0.050 0.061 0.065 0.077
Police Pension 0.057 0.060 0.066 0.076 0.080 0.082 0.078 0.083 0.087 0.109
Parks and Recreation 0.152 0.164 0.178 0.191 0.194 0.196 0.187 0.184 0.188 0.196
Special Recreation 0.013 0.014 0.016 0.018 0.018 0.018 0.018 0.018 0.019 0.020
General Obligation Bond 2000 0.025 - - - - - - - - -
General Obligation Bond 2001 B 0.004 - - - - - - - - -
General Obligation Bond 2003 A - - - - - - - - - -
General Obligation Bond 2008 0.032 0.034 0.036 0.037 0.037 0.026 - - - -
General Obligation Bond 2009 0.011 0.011 0.012 0.013 0.013 0.009 0.012 0.012 0.011 0.011
General Obligation Bond 2010 0.020 0.023 0.023 0.012 0.025 0.015 0.020 0.020 0.019 0.019
General Obligation Bond 2013 0.000 0.000 0.000 0.026 0.015 0.010 0.018 0.018 0.027 0.027
General Obligation Bond 2015 - - - - - 0.008 0.009 0.010 0.009 0.009
Total tax rate 0.856 0.894 0.991 1.079 1.102 1.110 1.065 1.076 1.113 1.188
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.
202
165
2011 2012 2013 2014 2015 2016 2017 2018 2019
General Merchandise 36,478$ 12,219$ 9,722$ 7,005$ 7,471$ 5,072$ 4,358$ 4,215$ 5,854$
Food 90,613 91,999 93,952 105,771 96,009 92,936 93,838 95,457 144,134
Drinking and Eating Places 140,639 155,188 165,386 180,023 163,447 173,473 182,278 177,620 261,770
Apparel 53,727 64,317 68,135 68,291 75,606 73,785 72,540 67,069 116,944
Furniture & H.H. & Radio 10,187 37,536 38,821 39,494 36,526 32,774 28,424 29,524 47,907
Lumber, Building, Hardware (6,528) 6,867 9,862 - - 7,537 8,238 9,633 17,362
Automobile and Filling Stations 38,209 38,900 37,025 34,895 28,267 26,735 30,895 35,146 48,650
Drugs and Miscellaneous Retail 105,512 81,022 110,554 117,262 118,740 117,224 102,558 103,843 154,528
Agriculture and All Others 97,776 110,446 121,651 105,139 129,721 116,945 105,670 66,743 146,885
Manufacturers (4,963) - - 7,095 (3,818) - - - -
Censored categories - - - - - - - - -
Total 561,650$ 598,494$ 655,108$ 664,975$ 651,969$ 646,481$ 628,799$ 589,250$ 944,034$
Total Number of Payers 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%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.
Effective July 2003, a .5% home rule sales tax was imposed.
Effective July 1 2019, an additional .5% home rule sales tax was imposed.
The City of Lake Forest became a home rule community in November 2004.
CITY OF LAKE FOREST
Sales Tax Base and Number of Principal Payers
Taxable Sales by Category - Home Rule Sales Tax
Last Ten Calendar Years
203