CITY COUNCIL 2021/11/01 AgendaTHE CITY OF LAKE FOREST
CITY COUNCIL AGENDA
Monday, November 1, 2021 at 6:30 pm
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 Access Link https://us02web.zoom.us/j/86071070334?pwd=SVdGL25QZXVobmFBNExaNEpnSEpNUT09 Webinar ID: 860 7107 0334 Passcode: 1861
CALL TO ORDER AND ROLL CALL 6:30 p.m.
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
PLEDGE OF ALLEGIANCE
REPORTS OF CITY OFFICERS
1. COMMENTS BY MAYOR
A. 2021-2022 Board and Commission Appointments and Reappointments
SENIOR RESOURCES COMMISSION
NAME OF MEMBER APPOINT/REAPPOINT WARD
Mark Dewart APPOINT LB
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Monday, November 1, 2021 City Council Agenda
A copy of the Volunteer Profile sheet begins on page 9
COUNCIL ACTION: Approve the Mayors Appointment
2. COMMENTS BY CITY MANAGER
3. OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL .
Members of the public can provide public comment by calling the following number during
the meeting: 847-810-3643
4. COMMITTEE REPORTS
AUDIT COMMITTEE
1. Audit Committee Report and Presentation of the Fiscal Year 2021 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, 2021.
BACKGROUND/DISCUSSION: The Comprehensive Annual Financial Report for the fiscal year
ended April 30, 2021 is provided beginning on page 11. A bound copy of the report 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 2021
financial statements.
The City has been awarded the Certificate of Achievement for Excellence in Financial Reporting
from the Government Finance Officers Association for forty-two (42) 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 2021 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, 2021.
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Monday, November 1, 2021 City Council Agenda
FINANCE COMMITTEE
1. Determination of Non-Binding Estimate of the Amount of Revenue to be generated
from Property Taxes for the 2021 Calendar Year in Accordance with the Truth in
Taxation Statute and Establishment of a Public Hearing Date for the 2021 Tax Levy (if
required)
PRESENTED BY: James Morris, Finance Committee Chair
And 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 2021
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 2021 tax levy by establishing an estimated
amount from which staff can prepare a proposed levy ordinance.
The 2021 property tax levy estimate, as considered by the Finance Committee on October 18,
is as follows:
Levy 2020 Extended 2021 Levy Estimate % Increase (Decr.)
Aggregate Levy $ 33,234,346 $ 34,137,604 2.72%
Debt Service Levy 1,847,395 1,821,451 -1.40%
TOTAL LEVY $ 35,081,741 $ 35,959,055 2.50%
The increase in the aggregate levy is comprised primarily of the following:
• 1.40% overall increase in compliance with the tax cap applicable to 2021 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
4/30/21 independent actuarial valuation and recommendation by the Pension
Subcommittee, 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 2021 tax levy is scheduled for the November 8 Finance Committee
budget workshop. The tax levy ordinance will be considered by the City Council on November
15 and again on December 6, 2021.
PROJECT REVIEW/RECOMMENDATIONS:
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Monday, November 1, 2021 City Council Agenda
Reviewed Date Comments
Finance Committee 10/18/21 Approval of 2021 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 2021 Calendar Year and establishment of December 6,
2021 as a public hearing date (if required) in Accordance with the Truth in Taxation Statute.
5. ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approval of October 18, 2021, City Council Meeting Minutes
A copy of the minutes can be found beginning on page 203
COUNCIL ACTION: Approval of October 18, 2021, City Council Meeting Minutes
2. Approval of the Check Register for the Period of September 25 – October 22, 2021
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:
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Monday, November 1, 2021 City Council Agenda
The subtotal labeled “All other Funds” includes Self-Insurance Fund claims and expenses of
$583,928.
COUNCIL ACTION: Approval of the Check Register for the Period of September 25 – October
22, 2021
3. Approval of a Resolution of Appreciation for Retiring Members of Boards and
Commissions as follows:
BOARD, COMMISSION OR COMMITTEE NAME OF MEMBERS(S)
SENIOR RESOURCE COMMISSION Ed Richardson- Lake Bluff
A copy of the resolution can be found on page 206
COUNCIL ACTION: Approve the Resolution of Appreciation
COUNCIL ACTION: Approval of the three (3) omnibus items as presented.
6. OLD BUSINESS
7. NEW BUSINESS
8. ADDITIONAL ITEMS FOR DISCUSSION/ COMMENTS BY COUNCIL MEMBERS
Fund Invoice Payroll Total
101 General 756,383 1,584,678 2,341,062
501 Water & Sewer 148,419 196,024 344,443
220 Parks & Recreation 195,017 451,294 646,312
311 Capital Improvements 468,477 0 468,477
202 Motor Fuel Tax 9,691 0 9,691
230 Cemetery 22,429 35,968 58,397
210 Senior Resources 9,652 30,056 39,708
510 Deerpath Golf Course 15,909 3,046 18,956
601 Fleet 117,734 61,760 179,494
416 - 433 Debt Funds 0 0 0
248 Housing Trust 0 0 0
201 Park & Public Land 0 0 0
All other Funds 877,787 170,428 1,048,215
$2,621,498 $2,533,255 $5,154,753
Check Register for September 25 - October 22, 2021
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Monday, November 1, 2021 City Council Agenda
1. EXECUTIVE SESSION pursuant to 5ILCS 120/2 (c) (11), The City Council will be
discussing pending and actually filed litigation.
Adjourn into Executive Session
There will be no additional City business following the adjournment into Executive Session
9. ADJOURNMENT
A copy of the Decision Making Parameters is included beginning on page 7 of this packet.
An instruction guide on how to participate at a City Council meeting is included beginning on
page 8.
Office of the City Manager October 27, 2021
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.
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THE CITY OF LAKE FOREST
DECISION-MAKING PARAMETERS FOR CITY COUNCIL,
AND APPOINTED BOARDS & COMMISSIONS
Adopted June 18, 2018
The City of Lake Forest Mission Statement:
"Be the best-managed, fiscally-responsible and appealing community and promote a community
spirit of trust, respect and citizen involvement. "
The Lake Forest City Council, with the advice and recommendations of its appointed advisory
Boards and Commissions, Lake Forest Citizens, and City Staff, is responsible for policy
formulation and approval. Implementation of adopted strategy, policy, budgets, and other
directives of Council is the responsibility of City Staff, led by the City Manager and Senior
Staff. The Mayor and Aldermen, and appointed members of Boards and Commissions should
address matters in a timely, deliberate, objective and process-driven manner, making decisions
guided by the City of Lake Forest Strategic and Comprehensive Plans, the City's Codes,
policies and procedures, and the following parameters:
. Motions and votes should comprise what is in the best long-term interests of all Lake
Forest citizens, measured in decades, being mindful of proven precedents and new
precedents that may be created.
. All points of view should be listened to and considered in making decisions with the
long-term benefit to Lake Forest's general public welfare being the highest priority.
. Fundmg decisions should support effectiveness and economy in providing services
and programs, while mindful of the number ofcidzens benefittmg from such
expenditures.
. New initiatives should be quantified, qualified, and evaluated for their long-tenn merit
and overall fiscal unpact and other consequences to the community.
. Decision makers should be proactive and timely in addressing sto-ategic planning
initiatives, external forces not under control of the City, and other opportunities and
challenges to the community.
Community trust in, and support of, government is fostered by maintaining the integrity of these
decision-making parameters.
The City of Lake Forest 's Decision-Making Parameters shall be reviewed by the City Council on an
annual basis and shall be included on all agendas of the City Council and Boards and Commissions.
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CITY COUNCIL – REMOTE ACCESS MEETING GUIDE
Rules:
An online guide to using Zoom is available here
Participants can join using the Zoom application, using the call in number located at the
top of the agenda, or can stream the meeting live via YouTube.
All Participants should use their real name (first and last) to identify themselves in the
meeting.
Public Participation:
Please wait to be recognized by a staff member, and the Mayor prior to making your
comment.
If you would like to address your public comment to the City Council live, you can use
one of two options
o The Raise hand function via the zoom application.
If you are using the raise hand function, wait to be
promoted to turn on your microphone to make a
comment. There is a slight delay after you are promoted.
You can then unmute yourself and address your
comments to the City Council.
o Calling the public comment line at 847-810-3643
If you are calling the public comment line, be sure to step away from your
computer or TV, where you are watching the meeting, to avoid feedback.
Device Audio Connection
Ideal Zoom app on a desktop
or Laptop
A headset with
microphone
Wired connection via
Ethernet
Better Zoom app on a mobile
phone or tablet
A headset (using built-in
microphone) Using a
phone to dial in
Connected Wirelessly via
WiFi
Okay Calling into conference
line (without Zoom app)
Computer speakers (using
built-in microphone)
Speakerphone on phone
Connected via 4G / LTE
(cellular data)
Using a phone to dial in
Tips
Make sure your device is
fully charged and you
have access to Zoom on
your device
When Participating, pick a
quite space to avoid any
background noise
If you have to use WiFi,
try to pick a workspace
close to your router.
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10
Comprehensive Annual
Financial Report
City of Lake Forest,Illinois
For the Year Ended April 30,2021
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Comprehensive Annual
Financial Report
of the City of Lake Forest, Illinois
Fiscal Year Ended April 30, 2021
City of Lake Forest Finance Department
Elizabeth Holleb, Finance Director
Diane Hall, Assistant Finance Director
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City of Lake Forest
Table of Contents
Year Ended April 30, 2021
Page
Introductory Section
Transmittal Letter i
Certificate of Achievement for Excellence in Financial Reporting viii
Organizational Chart ix
List of Principal Officials x
Financial Section
Independent Auditors' Report 1
Required Supplementary Information
Management's Discussion and Analysis 4
Basic Financial Statements
Government-W ide Financial Statements
Statement of Net Position 17
Statement of Activities 19
Fund Financial Statements
Balance Sheet - Governmental Funds 20
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 22
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 23
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of
Governmental Funds to the Statement of Activities 25
Statement of Net Position - Proprietary Funds 26
Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 28
Statement of Cash Flows - Proprietary Funds 29
Statement of Fiduciary Net Position - Fiduciary Funds 31
Statement of Changes in Fiduciary Net Position - Fiduciary Funds 32
Index to Notes to Financial Statements 33
Notes to Financial Statements 34
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City of Lake Forest
Table of Contents
April 30, 2021
Page
Required Supplementary Information
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
General Fund 84
Special Revenue Funds
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
Parks and Recreation Fund 85
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual -
General Cemetery Fund 86
Historical Pension and Other Postemployment Benefit Information
Illinois Municipal Retirement Fund - Schedule of Changes in the City's Net Pension Liability
and Related Ratios 87
Illinois Municipal Retirement Fund - Schedule of Employer Contributions 89
Police Pension Fund - Schedule of Changes in the City's Net Pension Liability and Related
Ratios 90
Police Pension Fund - Schedule of Employer Contributions 91
Police Pension Fund - Schedule of Investment Returns 93
Firefighters' Pension Fund - Schedule of Changes in the City's Net Pension Liability and
Related Ratios 94
Firefighters' Pension Fund - Schedule of Employer Contributions 95
Firefighters' Pension Fund - Schedule of Investment Returns 97
Other Postemployment Benefits Plan - Schedule of Changes in the City's Total OPEB Liability
and Related Ratios 98
Notes to Required Supplementary Information 99
Supplementary Information
Governmental Funds
Combining Balance Sheet - Nonmajor Governmental Funds 100
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 102
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Police Restricted Fund 104
Foreign Fire Insurance Tax Fund 105
Emergency Telephone Fund 106
Parks and Public Land Fund 10714
City of Lake Forest
Table of Contents
April 30, 2021
Page
Motor Fuel Tax Fund 108
Senior Resources Commission Fund 109
Housing Trust Fund 110
Debt Service Fund 111
Laurel/W estern Redevelopment TIF Fund 112
Capital Improvements Fund 113
Enterprise Funds
Schedules of Revenues, Expenses and Nonoperating Revenues (Expenses) - Budget and
Actual (Budgetary Basis)
Waterworks and Sewerage Fund 114
Deerpath Golf Course Fund 115
Internal Service Funds
Combining Statement of Net Position 116
Combining Statement of Revenues, Expenses and Changes in Net Position 117
Combining Statement of Cash Flows 118
Schedules of Revenues, Expenses and Nonoperating Revenues - Budget and Actual
(Budgetary Basis)
Fleet Fund 119
Self Insurance Fund 120
Liability Insurance Fund 121
Fiduciary Funds
Combining Statement of Fiduciary Net Position - Pension Trust Funds 122
Combining Statement of Changes in Fiduciary Net Position - Pension Trust Funds 123
Schedule of Changes in Fiduciary Net Position - Budget and Actual
Police Pension Fund - Pension Trust Fund 124
Firefighters' Pension Fund - Pension Trust Fund 125
Other Supplementary Schedules
Statement of Net Position and General Fund Balance Sheet - Discretely Presented
Component Unit - Lake Forest Library 126
Statement of Activities and General Fund Statement of Revenues, Expenditures and Changes
in Fund Balance - Discretely Presented Component Unit - Lake Forest Library 127
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City of Lake Forest
Table of Contents
April 30, 2021
Page
Summary of Debt Service Requirements to Maturity 128
Debt Service Requirements to Maturity - General Obligation Bonds 129
Special Service Area 25 Special Tax Bonds - 2003 Series 132
Special Service Area 26 Special Tax Bonds - 2003 Series 133
Special Service Area 29 Special Tax Bonds - 2004 Series 134
General Obligation Bonds - 2013 Series 135
General Obligation Bonds - 2015 Series 136
General Obligation Bonds - 2017 Series 137
General Obligation Bonds - 2019 Series 138
Combining Balance Sheet - Debt Service Fund 139
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Debt
Service Fund 141
Statistical Section
Net Position by Component - Last Ten Fiscal Years 143
Change in Net Position - Last Ten Fiscal Years 144
Fund Balances of Governmental Funds - Last Ten Fiscal Years 146
Change in Fund Balances for Governmental Funds - Last Ten Fiscal Years 147
Assessed Value and Actual Value of Taxable Property - Last Ten Levy Years 148
Property Tax Rates - Direct and Overlapping Governments - Last Ten Levy Years 149
Principal Property Taxpayers - Current Year and Nine Years Ago 150
Property Tax Levies and Collections - Last Ten Levy Years 151
Tax Extensions for City Funds - Last Ten Levy Years 152
Sales Tax Base and Number of Principal Payers - Taxable Sales by Category - .5% Sales Tax -
Last Ten Calendar Years 153
Sales Tax Base and Number of Principal Payers - Taxable Sales by Category - 1% Sales Tax -
Last Ten Calendar Years 154
Direct and Overlapping Sales Tax Rates - Last Ten Fiscal Years 155
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 156
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years 157
Direct and Overlapping Governmental Activities Debt 158
Legal Debt Margin Information - Last Ten Fiscal Years 15916
City of Lake Forest
Table of Contents
April 30, 2021
Page
Pledged Revenue Coverage - Last Ten Fiscal Years 160
Demographic and Economic Information - Last Ten Fiscal Years 161
Principal Employers - Current Year and Nine Years Ago 162
Full-Time Equivalent Employees - Last Ten Fiscal Years 163
Operating Indicators - Last Ten Fiscal Years 164
Capital Asset Statistics - Last Ten Fiscal Years 166
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October 21, 2021
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,
2021, 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, 2021, 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, 2021, are fairly presented in
conformity with GAAP. The independent auditors’ report is presented as the first component of the financial
section of this report.
GAAP require that management provide a narrative introduction, overview, and analysis to accompany the
basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A
is located immediately following the report of the independent auditors.
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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, 2015-2019 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.
179,563
827,800
89,427
265,100
65,886
194,500
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Median Household Income Median Home Value
Lake Forest Lake County Illinois
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In addition, the Appropriation Ordinance provides for a 10% contingency above those expenditures actually
budgeted. Each separate fund includes an item labeled contingency, with an appropriated amount
equivalent to 10% of the total funds budgeted. Even though there is a 10% contingency line item, the City
Council and City staff follow the adopted budget as its spending guideline and not the Appropriation
Ordinance. This practice has been followed for more than thirty years and has worked very efficiently as a
mechanism to address unanticipated items that may arise throughout the fiscal year.
Budget-to-actual comparisons are provided for each individual governmental fund for which an appropriated
annual budget has been adopted. For the General Fund, Parks and Recreation Fund and General Cemetery
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 2020, the City’s annual average unemployment rate was estimated to be 6.3%,
compared to 8.1% for Lake County and 9.5% for the State of Illinois.
• The consumer confidence index is closely monitored by economists because consumer spending
accounts for 70% of the United States’ economic activity. In August 2021, the index was 115.2, down
from 129.1 in July, and comparing favorably to the August 2020 index of 86.3. 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 70% of the General Fund operating budget, it has been necessary
to achieve cost savings through reduced personnel. In fiscal years (FY) 2004-2022, 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 FY2021 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.
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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
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.
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 FY2021. 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 budgeted reduced sales tax and income tax revenue for FY2021. Both sales tax and
income tax exceeded FY21 budget projections. The Police and Fire Pension investments resulted in larger
losses as of April 30, 2020. Investments rebounded in FY21, resulting in returns in excess of 25%. 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. Programs remained at reduced
capacities throughout FY21. 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 for approval,
reflecting changes based on anticipated reductions in consumer driven revenue. The Golf Course thrived
by offering outside services for residents. The City continues to seek grant opportunities to assist with the
financial impact of the pandemic. The City successfully applied for CARES funding and received $899,471,
through Lake County. The City has been awarded $2.6 million in America Rescue Plan Act (ARPA) funds
to be received in FY22 and FY23. To date, the City has received $203,482 in Federal Emergency
Management Agency (FEMA) funding to assist with COVID-19 expenses.
21
v
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. FY2021 real estate transfer tax revenue totaled
$2.7 million, which is $1.8 million over budget. Significant fluctuations occur in this revenue source due to
changes in economic conditions, and more specifically the housing market. The City will remain
conservative in projecting this revenue source and in spending monies on capital projects.
In FY2017, the City took advantage of one-time proceeds from the sale of City property to call general
obligation bonds issued in 2008. To provide an additional annual funding source for the Capital
Improvement Program, the City Council approved the creation of a Capital Improvements property tax levy
that would mirror the debt service maturities associated with the 2008 bonds. Beginning in FY2018, this
measure provided an additional $820,000 to the Capital Improvements Fund.
In FY2019, the City Council approved an increase to the Sanitation fee effective May 1, 2019. This measure
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 address 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, 2021,
the most recent actuarial valuation date, the funded ratio for the Police Pension Plan is 58.8% and for the
Firefighters’ Pension Plan is 78.2%.
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, 2020
due to a 2020 investment return of 14.79%, the funded ratio for IMRF is 104.16%, 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.
22
vi
Implementation of GASB Statement No. 67, Financial Reporting for Pension Plans, for Fiscal Year 2015
and No. 68, Accounting and Financial Reporting for Pensions, for Fiscal Year 2016 has resulted in
significant changes to the reporting of pension obligations in the City’s financial statements. In anticipation
of these statements taking effect, the City made adjustments to the mortality table and interest rate
assumptions for its police and fire pension fund actuarial valuations. These changes reduced the funded
ratio of the plans, but were intended to put the City in an even stronger position going forward. These
changes are in addition to historically overfunding the annual pension cost compared to minimum
requirements per State Statutes.
The City Council has continued deliberations on the funding of public safety pensions with the support of
staff, the fire and police pension boards, and the City’s independent actuary. Significant changes to actuarial
assumptions were made for the April 30, 2017 actuarial valuations, increasing the funding requirement for
FY2019 by a combined $800,000 and additional $190,000 in FY2020. The City Council approved a FY2021
transfer of $500,000 to each pension fund from FY2020 General Fund excess fund balance to provide
additional funding. 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 4 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 FY2021, 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, 2021 construction of the three apartment buildings is complete and nearly fully
occupied. The first of the two condominiums is complete with 17 units sold and one additional under
contract. Construction of the second building has not started. Seven single family homes have been
sold.
• In March 2020, the City Council authorized $443,150 to renovate the Fire Department locker room.
• In April 2020, the City Council authorized $764,811 for improvements to South Park. The City
received an OSLAD grant in the amount of $280,000 to assist with the project funding.
• In May 2020, the City Council authorized $800,000 for inflow and infiltration repairs to the City’s
sanitary sewer lines.
23
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• Staff pursued Federal grant funding through the CARES ACT to recover costs associated with the
Coronavirus pandemic. The City received $899,471 from Lake County’s CARES allocation. The
City transferred $50,624 to Lake Forest Library to assist with their additional expenses.
• The City provided $116,686 in COVID-19 stimulus grants to City businesses to assist with
economic hardships related to the COVID-19 pandemic.
• The City transferred $500,000 from the General Fund to the Parks and Recreation Fund due to
COVID-19 related losses.
• In July 2021, the City Council authorized transferring from FY2021 General Fund surplus, $750,000
to the Park and Public Land Fund and Housing Trust Fund and $2,842,640 to the Capital
Improvement Fund for future projects.
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, 2020. This was the 42nd consecutive year that the City of Lake Forest has achieved this
prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily
readable and efficiently organized comprehensive annual financial report. This report must satisfy both
generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is
valid for a period of one year only. We believe that our current comprehensive annual financial report continues
to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to
determine its eligibility for another certificate.
We would like to express our appreciation to all members of the Finance Department who assisted and
contributed to the preparation of this report. We would also like to thank the Mayor, members of the City Council
and the Audit Committee for their interest and support in planning and conducting the financial operations of
the City in a responsible and progressive manner.
Respectfully submitted,
Jason Wicha Elizabeth A. Holleb
City Manager Finance Director
24
viii 25
Voters and Residents of The City of Lake Forest
Mayor and
City Council
Office of the
City Manager
Community
Development
CROYA
Finance
Fire
Human
Resources
Innovation &
Technology
Parks &
Recreation
Police
Public Works
Senior Center
APPOINTED BOARDS,
COMMISSION, COMMITTEES
•Audit Committee
•Board of Fire and Police
Commissioners
•Board of Trustees –
Firefighter Pension Fund
•Board of Trustees –Police
Pension Fund
•Building Review Board
•Cemetery Commission
•Construction Codes
Commission
•CROYA Board
•Historic Preservation
Commission
•Housing Trust Fund Board
•Legal Committee
•Library Board
•Parks and Recreation
Board
•Plan Commission
•Senior Resources
Commission
•Zoning Board of Appeals
ix 26
x
List of Principal Officials
Year Ended April 30, 2021
LEGISLATIVE
City Council
George Pandaleon, Mayor
Jennifer Karras Melanie Rummel
James E. Morris Ted Notz
Jim Preschlack Ara Goshgarian
Raymond P. Buschmann Eileen Weber
AUDIT COMMITTEE
Vince Sparrow, Chairman
Tighe Magnuson
William McFadden
Mark Dillon
Tara Janos
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
27
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 of
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, 2021, 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 28
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, 2021 and the respective changes in financial position and, where applicable, cash flows
thereof for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the required
supplementary information as listed in the table of contents be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic or historical context. W e have
applied certain lim ited 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. W e 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 29
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated October 21, 2021 on
our consideration of the City of Lake Forest's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of
Lake Forest's internal control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Auditing Standards in considering the City of Lake Forest's
internal control over financial reporting and compliance.
Oak Brook, Illinois
October 21, 2021
3 30
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2021
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 increased $12.2 million for the fiscal year ending April 30, 2021 (FY21).
Governmental net position increased $11.9 million and business-type net position increased $.3 million.
• The governmental activities revenue increased by $4.9 million (8.6%) due to increased taxes, capital
grants/contributions, investment income and coronavirus relief funds, offset by decreases to charges for
services and operating grants and contributions. The expenses decreased by $8.7 million (17.4 %) due
primarily to adjustments related to pensions and reduced expenditures due to the pandemic.
• The business-type activities revenue increased by $1.3 million (13.7%) primarily due to an increase in
charges for services in the Water and Sewer Fund and Golf Course Fund offset by a decrease in
investment income The City’s business-type activity expenses increased by $.4 million (4.0 %) due
primarily to pension adjustments and non-capitalized improvements.
• The total cost of all City programs decreased from $68.8 million in FY20 to $60.5 million in FY21 – a
decrease of $8.3 million or 13.7% - attributable to decreased expenses attributed to the pandemic,
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.
31
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2021
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.
32
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2021
6
GOVERNMENT-WIDE STATEMENT
Statement of Net Position
The City’s combined net position increased by $12.2 million for FY21 – from $223.4 million to $235.6 million.
The analysis following will look at net position and net expenses of governmental and business-type
activities separately. The total net position for the governmental activities increased by $11.9 million – from
$174.7 million to $186.6 million. The business-type activities net position increased by $.3 million – from
$48.7 million to $49.0 million. Table 1 reflects the condensed Statement of Net Position compared to FY20.
Table 2 will focus on the changes in net position of the governmental and business-type activities.
Table 1
Statement of Net Position
As of April 30, 2020 and 2021
(in millions)
Governmental
Business-
Type Total Primary
Activities Activities Government
2020 2021 2020 2021 2020 2021
Current and Other Assets $103.0 $117.8 $11.8 $13.5 $114.8 $131.3
Capital Assets 195.6 193.2 55.9 52.9 251.5 246.1
Total Assets 298.6 311.0 67.7 66.4 366.3 377.4
Deferred Outflows 15.2 10.1 .4 0.2 15.6 10.3
Long- Term Liabilities 97.1 76.7 18.0 15.2 115.1 91.9
Other Liabilities 7.3 7.8 0.8 1.0 8.1 8.8
Total Liabilities 104.4 84.5 18.8 16.2 123.2 100.7
Deferred Inflows 34.7 50.0 0.6 1.3 35.3 51.3
Net Position:
Net Investment in
Capital Assets 165.2 164.8 39.0 38.1 204.2 202.9
Restricted 27.8 36.5 0.0 0.6 27.8 37.1
Unrestricted (18.3) (14.7) 9.7 10.3 (8.6) (4.4)
Total Net Position $174.7 $186.6 $48.7 $49.0 $223.4 $235.6
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.
33
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2021
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 $12.2 million increase in combined net position (which is the City’s bottom line) was the result of
the governmental activities net position increasing by $11.9 million and the business-type activities net
position increasing by $.3 million.
The governmental activities total assets increased by $12.4 million (>.4 %) while the governmental activities
total liabilities decreased by $19.9 million (23.6 %). 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 and net pension assets. The decrease in total
liabilities is due primarily to decreases in long term obligations relating to pension liabilities. 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.
The decrease in deferred outflows of $5.1 million related to pensions, while an increase in deferred inflows
of $15.3 million related to pensions, OPEB and an increase in property taxes levied for future periods.
Net investment in capital assets decreased by $.4 million (>.1%) due to depreciation and the pay down of
G.O. Bonds that funded the capital assets. Restricted net position increased $8.7 million largely due to
excess fund balance from the General Fund transferred to the Capital Improvement Fund to fund current
year capital improvements and Cemetery increased investment income. Unrestricted net position increased
by $3.6 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 increased by $.3 million, from $48.7 million to $49.0 million. The
primary change in assets of the business-type activities was a decrease in capital assets, offset by an
increase in restricted net position for employee retirements.
Long-term liabilities decreased by $2.8 million due to scheduled maturities of debt obligations and
decreases to net pension liabilities. Net investment in capital assets decreased by $ .9 million due to bond-
funded capital improvements, restricted net position increased by $.6 million and unrestricted net position
increased by $.6 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 an increase of $12.2 million in FY21. The City’s total
revenues increased by $6.2 million, primarily driven by increased property taxes, intergovernmental taxes
and investment income. The City’s cost of all programs decreased by $8.3 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.
34
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2021
8
2020 2021 2020 2021 2020 2021
REVENUE
Program Revenue
Charges for Services $12.4 $11.5 $9.0 $10.4 $21.4 $21.9
Grants and Contributions
Operating 1.5 1.1 0.0 0.0 1.5 1.1
Capital 0.5 0.8 0.5 0.8
General Revenue
Property Taxes 28.6 30.4 28.6 30.4
Other Taxes 4.7 6.3 4.7 6.3
Intergovernmental - Taxes 6.3 6.9 6.3 6.9
Interest Revenue 1.7 3.6 0.2 0.1 1.9 3.7
Other 1.3 1.3 0.3 0.3 1.6 1.6
Total Revenue 57.0 61.9 9.5 10.8 66.5 72.7
EXPENSES
Governmental Activities
General Government 13.9 12.9 13.9 12.9
Highways and Streets 8.7 7.5 8.7 7.5
Sanitation 2.7 2.4 2.7 2.4
Culture and Recreation 9.0 9.5 9.0 9.5
Public Safety 23.3 16.8 23.3 16.8
Interest 1.1 0.9 1.1 0.9
Business-Type Activities
Water and Sewer 8.2 8.5 8.2 8.5
Golf 1.9 2.0 1.9 2.0
Total Expenses 58.7 50.0 10.1 10.5 68.8 60.5
Excess before Transfers (1.7) 11.9 (0.6) 0.3 (2.3) 12.2
Transfers In (out)(0.2) 0.0 0.2 0.0 0.0 0.0
Change in Net Position (1.9) 11.9 (0.4) 0.3 (2.3) 12.2
Net Position - Beginning 176.6 174.7 49.1 48.7 225.7 223.4
Net Position - Ending $174.7 $186.6 $48.7 $49.0 $223.4 $235.6
Activities
Business-Type
Activities
Total Primary
Government
Table 2
Changes in Net Position
For the Fiscal Year Ended April 30, 2020 and 2021
(in millions)
Governmental
35
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2021
9
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
Property Tax
49%
Sales Tax
5%
Income Tax
5%
Utility Tax
4%
Real Estate
Transfer Tax
4%
Charges for
Services
19%Grants
3%Other
5%
Inv Income
6%
FY2021 Governmental Activities Revenue
36
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2021
10
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
General
Government
26%
Highways and
Streets
15%
Sanitation
4%
Culture and
Recreation
19%
Public Safety
34%Interest on LT Debt
2%
FY2021 Governmental Activities Expenses
37
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2021
11
Normal Impacts
There are eight basic impacts on revenues and expenses as reflected below.
Revenues
Economic Condition can reflect a declining, stable or growing economic environment and has a substantial
impact on state income, sales and utility tax revenue as well as public spending habits for building permits,
elective user fees and volumes of consumption.
Increase/Decrease in City approved rates – while certain tax rates are set by statute, the City Council has
authority to impose and periodically increase/decrease rates (water, sewer, building fees, etc.).
Changing Patterns in Intergovernmental and Grant Revenue (both recurring and non-recurring) – certain
recurring revenues (state shared revenues, etc.) may experience significant changes periodically while
non-recurring (or one-time) grants are less predictable and often distorting in their impact on year to year
comparisons.
Market Impacts on Investment income – investment income on the City’s investment portfolio may fluctuate
based on market conditions.
Expenses
Introduction of New Programs – within the functional expense categories (Public Safety, Highways and
Streets, General Government, etc.), individual programs may be added or deleted to meet changing
community needs.
Increase/Decrease in Authorized Personnel – changes in service demand may cause the City Council to
increase/decrease authorized staffing. Staffing costs (salary and related benefits) represent nearly 70% of
the City’s general fund operating costs.
Salary Increases (annual adjustments and merit) – the ability to attract and retain human and intellectual
resources requires the City to strive to approach a competitive salary range position in the marketplace.
Inflation – while overall inflation appears to be reasonably modest, the City is a major consumer of certain
commodities such as supplies, fuels and parts. Some functions may experience unusual commodity specific
increases.
Current Year Impacts
Governmental Activities
Revenue
For the fiscal year ended April 30, 2021, revenues from governmental activities totaled $61.9 million,
increasing $4.9 million compared to FY20. The primary changes occurred in Property Taxes (up $1.8
million), Real Estate Transfer Tax (up $1.4 million) Charges for Services (down $.9 million), Operating
Grants and Contributions (down $.4 million), Sales Taxes (down $.3 million), Income Taxes (up $.6 million)
Interest Revenue (up $1.9 million) and coronavirus relief funds (up $.5 million) The decrease in Charges
for Services was largely due to the cancellation of Recreation programs due to COVID-19. Sales Taxes
decrease was due primarily to the pandemic’s effect on business operations. Real Estate Transfer Tax
increased due to a record year in home sales. Investment income increased due to return on investments.
Property tax revenue continues to be the City’s single largest revenue source, contributing $30.4 million
(49 %) of governmental activities revenue.
Property tax revenues combined with sales tax, the local utility tax, shared state income tax and real estate
transfer tax revenues total $41.9 million and represent 68% of the total governmental activities revenue.
38
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2021
12
The real estate transfer tax became effective July 5, 2006 with 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 2020 equalized assessed valuation decreased 2.6% compared to the prior year and totaled
$2,396,662,125. 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 6.3% over FY20 in property taxes was
generated as a result of the City Council adopting a 4.64% increase in the levy and new growth. The City
received $.8 million from the Laurel/Western Redevelopment TIF District, which are not included in the City
Council approved tax levy. While the tax cap applicable to this levy was 1.9%, the levies for debt service
and capital improvements combined exceeded the tax cap.
Investment income increased by $1.9 million, from $1.7 million to $3.6 million. The City’s strategy for
investing did not change but the City benefitted from improved market conditions primarily in the Cemetery
Fund.
Expenses
For the fiscal year ended April 30, 2021, expenses for governmental activities totaled $50.0 million, a
decrease of $8.7 million (17.4 %). The decrease is due in large part to pension adjustments and cancellation
of Recreation programs due to the pandemic. Increases in personnel costs, which represent nearly 70% of
the General Fund operating costs, continue to outpace revenue growth. With high demand for skilled
employees in both the public and private sectors in this region, it is important that the City provide
competitive compensation levels for our employees. The FY21 expenses included funding for the City’s
performance based employee compensation package plus a 2.5% general salary adjustment.
Business-type Activities
Revenue
Total revenue for the business-type activities increased by $1.3 million (13.7%) primarily due to an increase
of charges for services in the Water and Sewerage Fund and Golf Course Fund, offset by a decrease in
investment income.
Expenses
The City’s business-type activity expenses increased by $.4 million (4.0 %) primarily due to increased
operating expenses in the Water and Sewerage Fund.
39
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2021
13
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds
At April 30, 2021, the governmental funds (as presented on the balance sheet) reported a combined fund
balance of $64.8 million which is an $8.2 million (14.5%) increase from the beginning of the year
($56.6 million). This increase was largely driven by excess of revenues over expenditures in the General
Fund and Cemetery Fund and decrease of revenue to the Parks and Recreation Fund. The City Council
elected to transfer from the General Fund an additional $3.5 million of the FY21 operating surplus to the
Capital Improvement Fund to provide additional funding for capital improvements, $.7 million was
transferred to the Parks and Public Lands Fund and Affordable Housing Fund to support future projects
and $.5 million to the Parks and Recreation Fund of the surplus set aside in FY20 for assistance to other
funds for COVID-19 related expenses in FY21. The Motor Fuel Tax fund received additional funding from
a Rebuild Illinois Grant received issued by the state. Of the total fund balance of $64.8 million, $.2 million
is not available for continuing City services and capital projects, and $36.7 million is restricted in its use.
The unassigned fund balance for the total of all governmental funds is $27.8 million, which is a $.9 million
(3.0%) decrease over the prior year. The City had reserved $1.0 million of FY2020 General Fund operating
surplus for potential impacts related to COVID-19 in FY2021.
Major Governmental Funds
The General Fund is the City’s primary operating fund and the largest source of day-to-day service delivery.
The total Fund Balance of the General Fund decreased by $1.2 million or 4.3% from FY20 (from
$29.6 million to $28.4 million). The General Fund revenues increased by $1.3 million (3.4%) due primarily
to higher property taxes and grants and contribution revenue offset by decreases in charges for services
and interest revenue. The General Fund expenditures increased by $1.0 million (3.0%) due to personnel
costs. The excess of revenues over expenditures (before transfers) for FY21 of $5.2 million was $.3 million
greater than FY20 $4.9 million. The other financing sources (uses) for FY21 of $6.4 million was significantly
higher than FY20 $4.3 million due to one-time revenues being transferred to other funds for capital
improvements and to provide assistance for COVID-19 reduced revenues.
Property taxes increased $1.2 million, while charges for services decreased $.5 grants and contributions
increased $.8 million due to the City pursuing CARES Act funding for COVID-19 impacts on City expenses.
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 2019 levy extension (FY21 revenue) allowed for a 4.64% increase as well as new equalized
assessed valuation growth.
General Fund expenditures increased overall due to personnel cost increases. General government
increased 5.0%, highways and streets increased 13.0% (personnel; snow and ice control), sanitation and
public safety remained constant.
40
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2021
14
Original Final
General Fund Budget Budget Actual
Revenues:
Taxes $22.6 $22.6 $22.5
Intergovernmental 4.6 4.6 6.6
Other 8.7 8.7 10.0
Total 35.9 35.9 39.1
Expenditures and Transfers:
Expenditures 38.6 39.3 33.9
Transfers (Net)1.0 1.4 6.4
Total 39.6 40.7 40.3
Change in Fund Balance ($3.7)($4.8) ($1.2)
Table 3
General Fund Budgetary Highlights
(in millions)
Actual General Fund revenues were higher than budgeted revenues by $3.2 million during FY21. The
primary variance resulted from income tax, sales tax and building permits exceeding projections and
receiving $.8 million in coronavirus relief funding. Actual General Fund expenditures and transfers were
lower than the final budget by $.4 million. It is the City’s policy to add 10%, which is $3.7 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 FY21. 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 increased by $.1 million, from $1.3
million to $1.4 million. The Parks and Recreation Fund revenues decreased by $.8 million due to
cancellation of programs as the result of COVID-19 and reduced investment income. Expenses decreased
by $1 million due to cancellation of programs as the result of COVID-19 Total other financing sources
(uses) were $.1 million in FY20, but $.8 million in FY21, due to a onetime transfer from the General Fund
to assist with COVID-19 related impacts and decreased transfers to the Golf Course Fund for capital
improvements.
The Capital Improvements Fund is reported as a Major Fund for FY21 and is used to account for revenues
associated with City building and infrastructure projects. Fund balance of this fund increased by $4.9 million
in FY21. Compared to FY20, revenue increased by $1.3 million due to increases in real estate transfer
taxes offset by decreases in property taxes and investment income. Total expenditures decreased by $2.8
million in the capital outlay category. Transfers in of $3.9 million for FY21 consisted of one time fund balance
transfer of the General Fund for one-time capital improvements.
The Cemetery Fund is reported as a Major Fund in FY21 and is used to account for the operations of the
Cemetery Commission. Fund balance for this fund increased by $3.3 million in FY21. Compared to FY20,
revenues increased $2.9 million due to investment income. Expenses remained constant in FY21.
41
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2021
15
CAPITAL ASSETS
2020 2021 2020 2021 2020 2021
Land and Improvements $40.2 $40.6 $0.5 $0.5 $40.7 $41.1
Infrastructure - Land 66.7 66.7 66.7 66.7
Construction in Progress 0.1 0.1 0.0 0.0 0.1 0.1
Infrastructure 53.1 50.9 53.1 50.9
Buildings 17.0 16.3 9.4 8.4 26.4 24.7
Improvements 14.4 14.3 32.3 31.1 46.7 45.4
Machinery and Equipment 4.1 4.3 1.6 1.4 5.7 5.7
Sanitary Sewers 0.0 0.0 12.1 11.5 12.1 11.5
Total $195.6 $193.2 $55.9 $52.9 $251.5 $246.1
Activities
Business-Type
Activities
Total Primary
Government
Table 4
Capital Assets at Year End - 2020 and 2021
Net of Depreciation
(in millions)
Governmental
At the end of FY21, the City had a combined total of $246.1 million invested in a broad range of capital
assets. This amount represents a net decrease (including additions and deductions) of $5.4 million. The
net decrease is attributable to a $2.4 million decrease in governmental activities and a $3.0 million decrease
in the business-type activities.
The decrease in the governmental activities was due to depreciation exceeding additions by $2.9 million.
The decrease in business-type activities was due primarily to $3.0 million of depreciation exceeding
additions.
The following reconciliation summarizes the changes in Capital Assets which are presented in detail in
Note 3.
Governmental Business-Type
Activities Activities Total
Beginning Balance $195.6 $55.9 $251.5
Additions
Depreciable 3.2 0.3 3.5
Construction in Progress 0.1 0.0 0.1
Retirements
Depreciable (0.4)(0.1)(0.5)
Depreciation (5.7)(3.3)(9.0)
Retirements 0.4 0.1 0.5
Ending Balance $193.2 $52.9 $246.1
Table 5
Change in Capital Assets
(in millions)
The increase in Governmental Activities of $3.2 million was due to equipment purchases and improvements
to South Park.
42
CITY OF LAKE FOREST, ILLINOIS
MANAGEMENT’S DISCUSSION AND ANALYSIS (UN AUDITED)
APRIL 30, 2021
16
Debt Outstanding
The City had $42.0 million of general obligation bonds outstanding at April 30, 2021. Of this amount $21.1
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 $5,409
and $4,330 if self-supporting debt is excluded.
The City operated as a home rule community for FY21. 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, 2021, the City’s net pension liability is $44.1 million, a decrease of $18.6 million compared
to the $62.7 million balance as of April 30, 2020. Additional information regarding the net pension liability
can be found in Note 4.
As of April 30, 2021, the City’s OPEB liability is $2.3 million, a decrease of $.5 million compared to the $2.8
million balance as of April 30, 2020. Additional information regarding the OPEB liability can be found in
Note 3.
Economic Factors
Unemployment levels in Lake Forest are well below the levels for Lake County and the State of Illinois. For
calendar year 2020, the City’s annual average unemployment rate was estimated to be 6.3%, compared to
8.1% for Lake County and 9.5% 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.
43
BASIC FINANCIAL STAT EMENTS
44
City of Lake Forest
Statement of Net Position
April 30, 2021
Primary Government
Component
Unit
Governmental
Activities
Business-
Type
Activities Total
Lake Forest
Library
Assets and Deferred Outflows of
Resources
Assets
Cash and cash equivalents $63,241,382 $10,179,676 $73,421,058 $6,269,624
Investments 10,216,223 -10,216,223 -
Receivables (net):
Property taxes 30,539,126 -30,539,126 4,329,806
Other taxes 366,880 -366,880 13,581
Accounts 1,376,157 1,484,338 2,860,495 -
Loans 10,559 -10,559 -
Other 5,622,731 3,976 5,626,707 -
Due from other governmental units 2,164,910 -2,164,910 -
Internal balances (1,019,708)1,019,708 --
Inventories 520,639 101,152 621,791 -
Prepaid items 757,056 90,745 847,801 -
Net pension asset 3,773,917 580,012 4,353,929 451,219
Due from fiduciary funds 222,845 -222,845 -
Capital assets:
Capital assets not being depreciated 107,476,009 441,413 107,917,422 238,500
Capital assets being depreciated, net of
accumulated depreciation 85,689,936 52,456,796 138,146,732 2,446,033
Total assets 310,958,662 66,357,816 377,316,478 13,748,763
Deferred Outflows of Resources
Deferred charge on refunding -717 717 -
Deferred outflows related to pensions 9,795,605 168,784 9,964,389 134,645
Deferred outflows related to total OPEB
liability 300,562 28,259 328,821 6,127
Total deferred outflows of resources 10,096,167 197,760 10,293,927 140,772
See notes to financial statements
17 45
City of Lake Forest
Statement of Net Position
April 30, 2021
Primary Government
Component
Unit
Governmental
Activities
Business-
Type
Activities Total
Lake Forest
Library
Liabilities, Deferred inflows of Resources
and Net Position
Liabilities
Accounts payable $2,570,986 $303,716 $2,874,702 $77,795
Accrued liabilities 1,606,468 60,517 1,666,985 54,991
Accrued interest payable 260,061 198,987 459,048 -
Deposits 920,335 -920,335 -
Unearned revenue 2,356,880 413,985 2,770,865 -
Due to fiduciary funds 72,962 -72,962 -
Noncurrent liabilities:
Due within one year 2,129,665 1,876,947 4,006,612 39,756
Due in more than one year 74,563,511 13,340,243 87,903,754 277,108
Total liabilities 84,480,868 16,194,395 100,675,263 449,650
Deferred Inflows of Resources
Property taxes levied for future periods 30,539,126 -30,539,126 4,329,806
Deferred inflows related to pensions 19,017,112 1,312,370 20,329,482 1,020,954
Deferred inflows related to total OPEB
liability 394,576 37,098 431,674 19,963
Deferred charge on refunding 28,365 -28,365 -
Total deferred inflows of resources 49,979,179 1,349,468 51,328,647 5,370,723
Net Position
Net investment in capital assets 164,798,332 38,142,896 202,941,228 2,636,468
Restricted for:
Culture and recreation 3,077,211 -3,077,211 -
Highways and streets 1,344,272 -1,344,272 -
Public safety 1,224,850 -1,224,850 -
Cemetery purposes 11,353,154 -11,353,154 -
Affordable housing 1,647,067 -1,647,067 -
Capital projects 16,222,288 -16,222,288 -
Debt service 1,640,674 -1,640,674 -
Employee retirement -580,012 580,012 451,219
Unrestricted (14,713,066)10,288,805 (4,424,261)4,981,475
Total net position $186,594,782 $49,011,713 $235,606,495 $8,069,162
See notes to financial statements
18 46
City of Lake Forest
Statement of Activities
Year Ended April 30, 2021
Program Revenues Net (Expenses) Revenues and Changes in Net Position
Primary Government Component Unit
Functions/Programs Expenses
Charges for
Services
Operating Grants
and
Contributions
Capital
Grants and
Contributions
Governmental
Activities
Business-Type
Activities Total Lake Forest Library
Primary Government
Governmental activities:
General government $12,863,134 $3,754,897 $69,253 $138,610 $(8,900,374)$-$(8,900,374)$-
Highway and streets 7,457,325 2,476,794 693,704 638,444 (3,648,383)-(3,648,383)-
Sanitation 2,438,916 1,053,692 --(1,385,224)-(1,385,224)-
Culture and recreation 9,453,397 1,733,927 326,712 -(7,392,758)-(7,392,758)-
Public safety 16,854,590 2,517,398 7,730 -(14,329,462)-(14,329,462)-
Interest on long-term debt 920,485 ---(920,485)-(920,485)-
Total governmental activities 49,987,847 11,536,708 1,097,399 777,054 (36,576,686)-(36,576,686)-
Business-type activities:
Waterworks and Sewerage 8,486,272 8,569,806 ---83,534 83,534 -
Deerpath Golf Course 2,042,874 1,864,338 ---(178,536)(178,536)-
Total business-type activities 10,529,146 10,434,144 ---(95,002)(95,002)-
Total primary government $60,516,993 $21,970,852 $1,097,399 $777,054 (36,576,686)(95,002)(36,671,688)-
Component Unit
Lake Forest Library $3,508,284 $40,251 $185,550 $----(3,282,483)
General Revenues
Taxes
Property 30,459,112 -30,459,112 4,260,835
Home rule sales 1,081,489 -1,081,489 -
Utility 2,282,346 -2,282,346 -
Real estate transfer 2,735,405 -2,735,405 -
Other 156,412 -156,412 -
Intergovernmental, unrestricted
Sales 2,175,264 -2,175,264 -
Income 3,223,407 -3,223,407 -
Telecommunication 820,169 -820,169 -
Replacement 179,967 -179,967 48,298
Coronavirus relief fund 502,065 -502,065 -
Other 1,294,923 290,648 1,585,571 -
Investment income 3,564,117 42,285 3,606,402 28,467
Total general revenues 48,474,676 332,933 48,807,609 4,337,600
Transfers (29,500)29,500 --
Total general revenues and transfers 48,445,176 362,433 48,807,609 4,337,600
Change in net position 11,868,490 267,431 12,135,921 1,055,117
Net Position, Beginning 174,726,292 48,744,282 223,470,574 7,014,045
Net Position, Ending $186,594,782 $49,011,713 $235,606,495 $8,069,162
See notes to financial statements
19 47
City of Lake Forest
Balance Sheet
Governmental Funds
April 30, 2021
General
Parks and
Recreation
General
Cemetery
Capital
Improvements
Assets
Cash and cash equivalents $28,883,403 $1,702,865 $916,970 $15,790,833
Investments --10,216,223 -
Receivables (net):
Property taxes 20,571,984 6,369,188 -1,528,217
Other taxes 366,880 ---
Accounts 1,097,550 269,858 -8,749
Loans 10,559 ---
Other 200,000 -76,050 -
Due from other governments 1,280,112 16,107 -524,467
Advances to other funds ----
Due from other funds -125,000 -624,815
Due from fiduciary funds --222,845 -
Inventories 104,760 ---
Prepaid items 103,901 ---
Total assets $52,619,149 $8,483,018 $11,432,088 $18,477,081
Liabilities, Deferred Inflows of Resources
and Fund Balances
Liabilities
Accounts payable $416,536 $98,718 $70,446 $309,828
Accrued liabilities 617,483 81,097 5,838 -
Deposits 874,335 --28,000
Unearned revenue 1,708,921 498,246 2,650 8,749
Due to other funds ----
Due to fiduciary funds 72,962 ---
Advances from other funds ---380,000
Total liabilities 3,690,237 678,061 78,934 726,577
Deferred Inflows of Resources
Property taxes levied for a future period 20,571,984 6,369,189 -1,528,216
Unavailable revenues ---31,449
Total deferred inflows of resources 20,571,984 6,369,189 -1,559,665
Fund Balances
Nonspendable 208,661 ---
Restricted -1,435,768 11,353,154 16,190,839
Unassigned 28,148,267 ---
Total fund balances 28,356,928 1,435,768 11,353,154 16,190,839
Total liabilities, deferred inflows of
resources and fund balances $52,619,149 $8,483,018 $11,432,088 $18,477,081
See notes to financial statements
20 48
Nonmajor
Governmental
Funds Total
$7,318,054 $54,612,125
-10,216,223
2,069,737 30,539,126
-366,880
-1,376,157
-10,559
885,732 1,161,782
344,224 2,164,910
380,000 380,000
-749,815
-222,845
-104,760
28,878 132,779
$11,026,625 $102,037,961
$688,221 $1,583,749
4,508 708,926
18,000 920,335
138,314 2,356,880
624,815 624,815
-72,962
-380,000
1,473,858 6,647,667
2,069,737 30,539,126
-31,449
2,069,737 30,570,575
28,878 237,539
7,758,367 36,738,128
(304,215)27,844,052
7,483,030 64,819,719
$11,026,625 $102,037,961
See notes to financial statements
21 49
City of Lake Forest
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
April 30, 2021
Total Fund Balances, Governmental Funds $64,819,719
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. 193,165,945
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.31,449
The net pension asset does not relate to current financial resources and is not reported in the
governmental funds.3,773,917
Less amount reported in the internal service fund below.(181,912)
Deferred outflows of resources related to pensions do not relate to current financial
resources and are not reported in the governmental funds.9,795,605
Less amount reported in the internal service fund below.(52,500)
Deferred inflows of resources related to pensions do not relate to current financial resources
and are not reported in the governmental funds.(19,017,112)
Less amount reported in the internal service fund below.411,603
Deferred outflows of resources related to total OPEB liability do not relate to current financial
resources and are not reported in the governmental funds.300,562
Less amount reported in the internal service fund below.(9,020)
Deferred inflows of resources related to total OPEB liability do not relate to current financial
resources and are not reported in the governmental funds.(394,576)
Less amount reported in the internal service fund below.11,842
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 (27,631,868)
Compensated absences (2,167,764)
Accrued interest (260,061)
Unamortized debt premium (707,380)
Net pension liabilities (44,127,517)
Total OPEB liability (2,058,647)
Less internal service fund long-term liabilities 100,121
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.(28,365)
Internal service funds are reported in the statement of net position as governmental activities.10,820,741
Net Position of Governmental Activities $186,594,782
See notes to financial statements
22 50
City of Lake Forest
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds
Year Ended April 30, 2021
General
Parks and
Recreation
General
Cemetery
Capital
Improvements
Revenues
Taxes:
Property $20,128,373 $5,866,617 $-$1,540,186
Other taxes 2,371,746 --3,300,150
Intergovernmental 6,591,951 57,390 --
Licenses and permits 3,133,137 ---
Fines, forfeitures and penalties 260,726 ---
Charges for services 4,358,718 1,520,239 796,458 108,896
Grants and contributions 857,585 214,577 12,915 597,073
Investment income 109,451 8,962 3,336,237 48,333
Miscellaneous revenues 1,294,224 8,136 -43,015
Total revenues 39,105,911 7,675,921 4,145,610 5,637,653
Expenditures
Current:
General government 10,436,328 -685,410 1,614,995
Highways and streets 2,643,326 --588,833
Sanitation 2,628,512 --25,126
Culture and recreation -8,069,319 -104,090
Public safety 18,163,049 ---
Capital Outlay -251,758 172,616 2,327,808
Debt Service:
Principal retirement ----
Interest and fiscal charges ----
Total expenditures 33,871,215 8,321,077 858,026 4,660,852
Excess (deficiency) of revenues over
expenditures 5,234,696 (645,156)3,287,584 976,801
Other Financing Sources (Uses)
Transfers in -802,000 -3,892,640
Transfers out (6,455,153)(23,000)--
Proceeds from capital asset sales -9,323 -5,520
Total other financing sources (uses)(6,455,153)788,323 -3,898,160
Net change in fund balances (1,220,457)143,167 3,287,584 4,874,961
Fund Balances, Beginning 29,577,385 1,292,601 8,065,570 11,315,878
Fund Balances, Ending $28,356,928 $1,435,768 $11,353,154 $16,190,839
See notes to financial statements
23 51
Nonmajor
Governmental
Funds Total
$2,923,936 $30,459,112
564,744 6,236,640
1,333,442 7,982,783
-3,133,137
-260,726
827,483 7,611,794
277,139 1,959,289
28,514 3,531,497
1,146 1,346,521
5,956,404 62,521,499
405,738 13,142,471
-3,232,159
-2,653,638
1,086,968 9,260,377
286,764 18,449,813
1,816,113 4,568,295
1,910,089 1,910,089
1,026,472 1,026,472
6,532,144 54,243,314
(575,740)8,278,185
2,110,201 6,804,841
(356,688)(6,834,841)
-14,843
1,753,513 (15,157)
1,177,773 8,263,028
6,305,257 56,556,691
$7,483,030 $64,819,719
See notes to financial statements
24 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
Year Ended April 30, 2021
Net Change in Fund Balances, Total Governmental Funds $8,263,028
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 3,286,798
Depreciation is reported in the government-wide financial statements (5,658,178)
Retirement of capital assets (15,269)
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 (671,611)
Debt issued provides current financial resources to governmental funds, but issuing debt
increases long-term liabilities in the statement of net position. Repayment of debt principal
is an expenditure in the governmental funds, but the repayment reduces long-term liabilities
in the statement of net position.
Principal repaid 1,910,089
Governmental funds report debt premiums and discounts as other financing sources or 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 premium 91,617
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 42,724
Accrued interest on debt 10,690
Amortization of deferred charge on refunding 3,678
Net pension asset 3,773,917
Deferred outflows of resources related to pensions (5,101,085)
Deferred inflows of resources related to pensions (13,655,602)
Net pension liability 17,890,241
Deferred outflows of resources related to OPEB Liability (26,313)
Deferred inflows of resources related to OPEB Liability (394,576)
Total OPEB liability 465,030
Less amount reported in internal service funds below (77,141)
Internal service funds are used by management to charge self insurance costs to individual
funds. The change in net position of the internal service fund reported with governmental
activities 1,730,453
Change in Net Position of Governmental Activities $11,868,490
See notes to financial statements
25 53
City of Lake Forest
Statement of Net Position
Proprietary Funds
April 30, 2021
Business-Type Activities - Enterprise Funds
Waterworks
and
Sewerage
Nonmajor
Enterprise
Fund -
Deerpath
Golf Course Total
Governmental
Activities -
Internal
Service Funds
Assets
Current assets:
Cash and cash equivalents $9,517,054 $662,622 $10,179,676 $8,629,257
Receivables:
Accounts 1,482,846 1,492 1,484,338 -
Other 3,976 -3,976 4,460,949
Inventories -101,152 101,152 415,879
Prepaid items -90,745 90,745 624,277
Total current assets 11,003,876 856,011 11,859,887 14,130,362
Noncurrent assets:
Net pension asset 570,454 9,558 580,012 181,912
Capital assets:
Capital assets not being depreciated 345,896 95,517 441,413 -
Capital assets being depreciated 116,011,893 5,580,364 121,592,257 48,047
Less accumulated depreciation (65,505,453)(3,630,008)(69,135,461)(48,047)
Total noncurrent assets 51,422,790 2,055,431 53,478,221 181,912
Total assets 62,426,666 2,911,442 65,338,108 14,312,274
Deferred Outflows of Resources
Deferred charge on refunding 717 -717 -
Deferred outflows related to pensions 163,221 5,563 168,784 52,500
Deferred outflows related to total OPEB
liability 27,804 455 28,259 9,020
Total deferred outflows of resources 191,742 6,018 197,760 61,520
See notes to financial statements
26 54
City of Lake Forest
Statement of Net Position
Proprietary Funds
April 30, 2021
Business-Type Activities - Enterprise Funds
Waterworks
and
Sewerage
Nonmajor
Enterprise
Fund -
Deerpath
Golf Course Totals
Governmental
Activities -
Internal
Service Funds
Liabilities
Current liabilities:
Accounts payable $142,830 $160,886 $303,716 $987,237
Accrued liabilities 48,063 12,454 60,517 897,542
Accrued interest payable 193,968 5,019 198,987 -
Unearned revenue 24,229 389,756 413,985 -
General obligation bonds 1,782,347 89,600 1,871,947 -
Compensated absences 4,981 19 5,000 -
Due to other funds -125,000 125,000 -
Total current liabilities 2,196,418 782,734 2,979,152 1,884,779
Noncurrent liabilities:
Long-term debt:
General obligation debt payable 12,692,949 191,134 12,884,083 -
Compensated absences 256,740 5,864 262,604 38,338
Total OPEB liability 190,441 3,115 193,556 61,783
Total noncurrent liabilities 13,140,130 200,113 13,340,243 100,121
Total liabilities 15,336,548 982,847 16,319,395 1,984,900
Deferred Inflows of Resources
Deferred inflows related to pensions 1,290,745 21,625 1,312,370 411,603
Deferred inflows related to total OPEB liability 36,501 597 37,098 11,842
Total deferred inflows of resources 1,327,246 22,222 1,349,468 423,445
Net Position
Net investment in capital assets 36,377,757 1,765,139 38,142,896 -
Restricted for:
Employee retirement 570,454 9,558 580,012 181,912
Unrestricted 9,006,403 137,694 9,144,097 11,783,537
Total net position $45,954,614 $1,912,391 47,867,005 $11,965,449
Adjustments to reflect the consolidation of
internal service funds activities related to
enterprise funds.1,144,708
Net position business-type activities $49,011,713
See notes to financial statements
27 55
City of Lake Forest
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
Year Ended April 30, 2021
Business-Type Activities - Enterprise Funds
Waterworks
and
Sewerage
Nonmajor
Enterprise
Fund -
Deerpath
Golf Course Total
Governmental
Activities -
Internal
Service Funds
Operating Revenues
Charges for services $8,669,225 $1,864,338 $10,533,563 $10,117,701
Connection fees 182,688 -182,688 -
Miscellaneous 5,845 -5,845 -
Total operating revenues 8,857,758 1,864,338 10,722,096 10,117,701
Operating Expenses
General and administrative 2,210,663 677,589 2,888,252 8,247,697
Operations and maintenance 2,996,457 1,053,520 4,049,977 -
Depreciation and amortization 2,993,900 348,026 3,341,926 -
Total operating expenses 8,201,020 2,079,135 10,280,155 8,247,697
Operating income (loss)656,738 (214,797)441,941 1,870,004
Nonoperating Revenues (Expenses)
Investment income 39,495 2,790 42,285 32,620
Gain on disposal of capital assets 1,221 -1,221 -
Other 1,475 -1,475 -
Interest expense (411,948)(8,528)(420,476)-
Paying agent fees (1,176)(10)(1,186)-
Total nonoperating revenues
(expenses)(370,933)(5,748)(376,681)32,620
Income (loss) before transfers 285,805 (220,545)65,260 1,902,624
Transfers
Transfers in 6,500 23,000 29,500 500
Total transfers 6,500 23,000 29,500 500
Change in net position 292,305 (197,545)94,760 1,903,124
Net Position, Beginning 45,662,309 2,109,936 47,772,245 10,062,325
Net Position, Ending $45,954,614 $1,912,391 47,867,005 $11,965,449
Adjustment to change in net position to reflect
the consolidation of internal service funds
activities related to enterprise funds 172,671
Change in net position of business-type
activities $267,431
See notes to financial statements
28 56
City of Lake Forest
Statement of Cash Flows
Proprietary Funds
Year Ended April 30, 2021
Business-Type Activities - Enterprise Funds
Waterworks
and
Sewerage
Nonmajor
Enterprise
Fund -
Deerpath
Golf Course Total
Governmental
Activities -
Internal
Service Funds
Cash Flows From Operating Activities
Received from customers $8,702,583 $2,099,089 $10,801,672 $8,928,998
Paid to suppliers for goods and services (2,981,694)(1,030,081)(4,011,775)(7,305,935)
Paid to employees for services (2,591,253)(687,138)(3,278,391)(663,606)
Net cash flows from operating activities 3,129,636 381,870 3,511,506 959,457
Cash Flows From Investing Activities
Investment income 39,495 2,790 42,285 32,620
Net cash flows from investing activities 39,495 2,790 42,285 32,620
Cash Flows From Noncapital Financing
Activities
Transfers from (to) other funds 6,500 23,000 29,500 500
Miscellaneous 2,696 -2,696 -
Net cash flows from noncapital
financing activities 9,196 23,000 32,196 500
Cash Flows From Capital and Related
Financing Activities
Principal paid (1,844,332)(90,081)(1,934,413)-
Interest paid (598,000)(17,592)(615,592)-
Acquisition and construction of capital
assets (183,505)(142,444)(325,949)-
Other, paying agent fees (1,176)(10)(1,186)-
Net cash flows from capital and related
financing activities (2,627,013)(250,127)(2,877,140)-
Net change in cash and cash
equivalents 551,314 157,533 708,847 992,577
Cash and Cash Equivalents, Beginning 8,965,740 505,089 9,470,829 7,636,680
Cash and Cash Equivalents, Ending $9,517,054 $662,622 $10,179,676 $8,629,257
See notes to financial statements
29 57
City of Lake Forest
Statement of Cash Flows
Proprietary Funds
Year Ended April 30, 2021
Business-Type Activities - Enterprise Funds
Waterworks
and
Sewerage
Nonmajor
Enterprise
Fund -
Deerpath
Golf Course Total
Governmental
Activities -
Internal
Service Funds
Reconciliation of Operating Income (Loss)
to Net Cash Flows From Operating
Activities
Operating income (loss)$656,738 $(214,797)$441,941 $1,870,004
Adjustments to reconcile operating income
(loss) to net cash flows from operating
activities:
Depreciation 2,993,900 348,026 3,341,926 -
Changes in assets and liabilities:
Accounts receivable (161,107)7,318 (153,789)(1,187,575)
Inventories -(19,017)(19,017)(31,416)
Prepaid items -2,823 2,823 (39,424)
Net pension asset (570,454)-(570,454)(181,912)
Deferred outflows related to pensions 214,390 516 214,906 61,012
Deferred outflows related to OPEB 3,654 32 3,686 327
Accounts payable 14,763 39,633 54,396 261,700
Accrued liabilities ---164,437
Accrued salaries (43,144)(4,788)(47,932)-
Net pension liability (650,249)(19,947)(670,196)(194,028)
Deferred inflows related to pensions 677,903 11,834 689,737 228,737
Deferred inflows related to OPEB 36,501 597 37,098 11,842
Unearned revenue 5,932 227,433 233,365 (1,128)
Compensated absences 3,241 2,850 6,091 7,262
Total OPEB liability (52,432)(643)(53,075)(10,381)
Net cash flows from operating activities $3,129,636 $381,870 $3,511,506 $959,457
Noncash Capital and Related Financing
Activities
None
See notes to financial statements
30 58
City of Lake Forest
Statement of Fiduciary Net Position
Fiduciary Funds
April 30, 2021
Private
Purpose Trust
Fund
Pension Trust
Funds
Assets
Cash $-$172,980
Money markets 13,655 4,062,853
Investments:
U.S. Treasury obligations -11,316,487
U.S. Government agencies -3,400,195
Municipal/corporate bonds -11,125,412
Equity securities 519,035 -
Mutual funds 495,198 58,859,929
Real estate investment fund -3,929,533
Receivables:
Interest -149,785
Prepaid items -15,332
Due from other funds -72,962
Total assets 1,027,888 93,105,468
Liabilities
Accounts payable -60,725
Due to primary government 222,845 -
Total liabilities 222,845 60,725
Net Position
Restricted for pension benefits -93,044,743
Restricted for other purposes 805,043 -
Total net position $805,043 $93,044,743
See notes to financial statements
31 59
City of Lake Forest
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
Year Ended April 30, 2021
Private
Purpose Trust
Fund
Pension Trust
Funds
Additions
Contributions:
Employer $-$6,148,605
Employee -776,960
Total contributions -6,925,565
Investment income:
Interest 11,646 1,310,521
Net appreciation in fair value of investments 304,886 18,340,725
Total investment income 316,532 19,651,246
Less Investment expense -(152,494)
Net investment income 316,532 19,498,752
Miscellaneous -837
Total additions 316,532 26,425,154
Deductions
Pension benefits and refunds -5,928,689
Other administrative expenses 55,270 83,726
Total deductions 55,270 6,012,415
Change in fiduciary net position 261,262 20,412,739
Net Position, Beginning 543,781 72,632,004
Net Position, Ending $805,043 $93,044,743
See notes to financial statements
32 60
City of Lake Forest
Index to Notes to Financial Statements
April 30, 2021
Page
1.Summary of Significant Accounting Policies 34
Reporting Entity 34
Government-W ide and Fund Financial Statements 35
Measurement Focus, Basis of Accounting and Financial Statement Presentation 38
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and
Net Position or Equity 39
Deposits and Investments 39
Receivables 44
Inventories and Prepaid Items 44
Capital Assets 44
Deferred Outflows of Resources 45
Compensated Absences 45
Long-Term Obligations 46
Deferred Inflows of Resources 46
Equity Classifications 46
2.Stewardship, Compliance and Accountability 47
Budgetary Information 47
Deficit Balances 48
3.Detailed Notes on All Funds 49
Deposits and Investments 49
Receivables 53
Capital Assets 54
Interfund Receivables/Payables, Advances and Transfers 56
Long-Term Obligations 58
Lease Disclosures 60
Fund Balances 60
4.Other Information 61
Employees' Retirement System 61
Risk Management 76
Joint Ventures 78
Other Postemployment Benefits 79
Subsequent Event 82
Laurel and W estern Tax Increment Financing (TIF) District 82
Effect of New Accounting Standards on Current-Period Financial Statements 83
33 61
City of Lake Forest
Notes to Financial Statements
April 30, 2021
1.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).
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.
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
Adm inistrative Office, 800 North Field Drive, Lake Forest, Illinois 60045. The Library follows
the same accounting policies as the City.
34 62
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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 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.
Government-Wide and Fund Financial Statements
Government-Wide Financial Statements
The statement of net position and statement of activities display information about the reporting
government as a whole. They include all funds of the reporting entity except for fiduciary funds.
The statements distinguish between governmental and business-type activities. Governmental
activities generally are financed through taxes, intergovernmental revenues and other
nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to
external parties for goods or services. Likewise, the primary government is reported separately
from certain legally separate component units for which the primary government is financially
accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. The City does not allocate indirect expenses to
functions in the statement of activities. Program revenues include 1) charges to customers or
applicants who purchase, use or directly benefit from goods, services or privileges provided by a
given function or segment and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular function or segment. Taxes and other items not
included among program revenues are reported as general revenues. Internally dedicated
resources are reported as general revenues rather than as program revenues.
Fund Financial Statements
Financial statements of the City are organized into funds, each of which is considered to be a
separate accounting entity. Each fund is accounted for by providing a separate set of self-
balancing accounts, which constitute its assets, deferred outflows of resources, liabilities, deferred
inflows of resources, net position/fund balance, revenues and expenditures/expenses.
35 63
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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 percent 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
percent test is at least 5 percent 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
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.
Special Revenue Funds
Parks and Recreation Fund is 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.
General Cemetery Fund is to account for the operations of the cemetery commission.
Financing is provided by the proceeds from cemetery lot sales, user charges and donations.
Capital Projects Fund
Capital Improvements Fund is used to account for revenues to be used to fund City building
and infrastructure projects.
Enterprise Fund
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.
36 64
City of Lake Forest
Notes to Financial Statements
April 30, 2021
The City reports the following nonmajor governmental and enterprise funds:
Special Revenue Funds
Special Revenue Funds are 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
Senior Resources Commission
Housing Trust
Debt Service Fund
Debt Service Fund is 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
Capital Projects Fund is 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
Enterprise Fund is 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
Internal Service Funds are 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
37 65
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Private-Purpose Trust Fund
Private-Purpose Trust Fund is used to account for and report any trust arrangement not
properly 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 Trust Funds
Pension Trust Funds are 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.
Police Pension
Firefighters' Pension
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. Interfund services provided and used are not eliminated in the process of
consolidation.
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.
38 66
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Intergovernmental aids and grants are recognized as revenues in the period the City is entitled 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 Funds
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. Special assessments are recorded as
receivables and contribution revenue when levied. 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.
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.
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net
Position or Equity
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;
39 67
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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 percent of the corporation's outstanding obligations and such purchases
cannot exceed one-third of funds;
Money Market Mutual Funds - registered under the Investment Company Act of 1940 (15
U.S.C.A. § 80a-1 et. seq.), provided the portfolio is limited to bonds, notes, certificates,
treasury bills or other 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
40 68
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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 percent of the fund's investments.
In addition, Pension Funds are also permitted to invest in the following instruments:
Common and preferred stock authorized for investments of trust funds under the laws of
the State of Illinois limited to 35 percent 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 percent 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 69
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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 35.00 % 2.10 %
Domestic equities 39.00 5.80
International equities 15.00 6.30
Real estate 10.00 5.50
Cash and cash equivalents 1.00 0.10
Illinois Compiled Statues (ILCS) limit the Police Pension Fund's investments in equities, mutual
funds and variable annuities to 65 percent. Securities in any one company should not exceed 5
percent of the total fund.
The long-term expected rate of return on the Police Pension Fund's investments was determined
using a building-block method in which best-estimate ranges of expected future real rates of return
(net of pension plan investment expense and inflation) were developed for each major asset class.
These ranges were combined to produce long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding
expected inflation. Best estimates of arithmetic real rates of return for each major asset class
included in the Police Pension Fund's target asset allocation are listed in the table above.
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 6.00 % 0.85 %
US Fixed Income Taxable 27.60 1.75
US Large Cap 49.00 6.95
US Mid Cap 6.70 7.45
US Small Cap 1.60 7.35
International Equities 7.60 6.05
Equity Hedge Assets 1.50 4.65
Illinois Compiled Statues (ILCS) limit the Firefighters' Pension Fund's investments in equities,
mutual funds and variable annuities to 65 percent. Securities in any one company should not
exceed 5 percent of the total fund.
42 70
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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.
Interest Rate Risk
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.
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.
Credit Risk
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.
Concentration of Credit Risk
The Cemetery and Police Pension Funds' investment policy further limits the investment in any
one company or issuer to 5 percent of the funds' total assets. The Cemetery fund also limits
the investment in any one equity industry group to no more than 15 percent of the Fund's
assets.
Custodial Credit Risk, Deposits
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 percent 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.
Custodial Credit Risk, Investments
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.
43 71
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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 methods and
inputs as outlined in Note 3. 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.
See Note 3 for further information.
Receivables
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 2021 tax levy, which attached as an enforceable lien on
the property as of January 1, 2021, has not been recorded as a receivable as of April 30, 2021, as
the tax has not yet been levied by the City and will not be levied until December 2021 and
therefore, the levy is not measurable at April 30, 2021.
Tax bills for levy year 2020 are prepared by Lake County and issued on or about May, 2021 and
are payable in two installments, on or about June 1, 2021 and September 1, 2021 or within 30 days
of the tax bills being issued.
The County collects such taxes and remits them periodically. The 2020 property tax levy is
recognized as a receivable and deferred inflows in fiscal 2021, net the 1.5 percent allowance for
uncollectible. As the taxes become available to finance current expenditures, they are recognized
as revenues. At April 30, 2021, the property taxes receivable and related deferred inflows
consisted of the estimated amount collectible from the 2020 levy.
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.
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.
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 their estimated acquisition value at the
date of donation.
44 72
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Additions to and replacements of capital assets of business-type activities are recorded at
original cost, which includes material, labor, overhead and an allowance for the cost of funds
used during construction when significant. For tax-exempt debt, the amount of interest
capitalized equals the interest expense incurred during construction netted against any interest
revenue from temporary investment of borrowed fund proceeds. No interest was capitalized
during the current year. The cost of renewals and betterments relating to retirement units is
added to plant accounts. The cost of property replaced, retired or otherwise disposed of, is
deducted from plant accounts and, generally, together with removal costs less salvage, is
charged to accumulated depreciation.
Depreciation and amortization of all exhaustible capital assets is recorded as an allocated
expense in the statement of activities, with accumulated depreciation and amortization
reflected in the statement of net position. Depreciation and amortization is provided over the
assets' estimated useful lives using the straight-line method. The range of estimated useful
lives by type of asset is as follows:
Public domain infrastructure 20 - 60 Years
Buildings 30 - 50 Years
Improvements other than buildings 40 - 80 Years
Vehicles, machinery, equipment and software 3 - 20 Years
Water mains 40 Years
Sanitary sewers 50 Years
Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are
accounted for as capital outlay expenditures of the governmental fund upon acquisition.
Capital assets used in proprietary fund operations are accounted for the same way as in the
government-wide statements.
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.
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.
45 73
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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 liabilities and accrued compensated absences.
Long-term obligations for governmental funds are not reported as liabilities in the fund financial
statements. The face value of debts (plus any premiums) are reported as other financing sources
and payments of principal and interest are reported as expenditures. The accounting in proprietary
funds is the same as it is in the government-wide statements.
For the government-wide statements and proprietary fund statements, bond premiums and
discounts are amortized over the life of the issue using the effective interest method. The balance
at year end is shown as an increase or decrease in the liability section of the statement of net
position.
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.
Equity Classifications
Government-Wide Statements
Equity is classified as net position and displayed in three components:
a. Net investment in capital assets - Consists of capital assets including restricted capital
assets, net of accumulated depreciation and reduced by the outstanding balances
(excluding unspent debt proceeds) of any bonds, mortgages, notes or other
borrowings that are attributable to the acquisition, construction or improvement of
those assets.
b. Restricted net position - Consists of net position with constraints placed on their use
either by 1) external groups such as creditors, grantors, contributors or laws or
regulations of other governments or, 2) law through constitutional provisions or
enabling legislation.
c. Unrestricted net position - All other net positions that do not meet the definitions of
restricted or net investment in capital assets.
When both restricted and unrestricted resources are available for use, it is the City's policy to
use restricted resources first, then unrestricted resources as they are needed.
Fund Statements
Governmental fund balances are displayed as follows:
a. Nonspendable - Includes fund balance amounts that cannot be spent either because
they are not in spendable form or because legal or contractual requirements require
them to be maintained intact.
b. Restricted - Consists of fund balances with constraints placed on their use either by 1)
external groups such as creditors, grantors, contributors or laws or regulations of other
governments or 2) law through constitutional provisions or enabling legislation.
46 74
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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. W ithin the other governmental
fund types (special revenue, debt service, capital projects) resources are assigned in
accordance with the established fund purpose and approved budget/appropriation.
Assignments may take place after the end of the reporting period.
e. Unassigned - Includes residual positive fund balance within the general fund which
has not been classified within the other above mentioned categories. Unassigned fund
balance may also include negative balances for any governmental fund if expenditures
exceed amounts restricted, committed or assigned for those purposes.
Proprietary fund equity is classified the same as in the government-wide statements.
In the General Fund, it is the City's policy to consider restricted resources to have been spent
first when an expenditure is incurred for which both restricted and unrestricted (i.e. committed,
assigned or unassigned) fund balances are available, followed by committed and then
assigned fund balances. Unassigned amounts are only used after the other resources have
been used. In other governmental funds (special revenue, capital projects and debt service
fund types), it is the City's policy to consider restricted resources to have been spent last.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund
balances are available, the City first uses any assigned amounts, followed by committed and
then restricted amounts.
See Note 3 for further information.
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.
2.Stewardship, Compliance and Accountability
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.
47 75
City of Lake Forest
Notes to Financial Statements
April 30, 2021
(3)The budget and the appropriation ordinance, which is 10 percent 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
depreciation expense is not budgeted. Additionally, the Pension Trust Funds adopted
budgets which are generally in accordance with GAAP.
Deficit Balances
Generally accepted accounting principles require disclosure of individual funds that have deficit
balances at year end.
As of April 30, 2021, the following individual fund held a deficit balance:
Fund Am ount
Laurel/W estern Redevelopment TIF Improvements $304,215
48 76
City of Lake Forest
Notes to Financial Statements
April 30, 2021
3.Detailed Notes on All Funds
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 $61,691,770 $62,034,628
Custodial Credit Risk,
Deposits
Money markets 4,371,828 4,371,828
Custodial Credit Risk,
Deposits
U.S. government agencies, explicitly
guaranteed 5,994 5,994
Custodial Credit Risk -
Investments, Interest
Rate Risk
U.S. government agencies, implicitly
guaranteed 3,394,201 3,394,201
Credit Risk, Custodial
Credit Risk,
Investments,
Concentration of Credit
Risk, Interest Rate Risk
Mutual funds, other than bonds 61,080,975 61,080,975 N/A
U.S. treasury obligations 11,316,487 11,316,487
Custodial Credit Risk,
Investments, Interest
Rate Risk
Real estate investment fund 3,929,533 3,929,533
Custodial Credit Risk,
Investments
Municipal/corporate bonds 11,125,412 11,125,412
Credit Risk, Custodial
Credit Risk,
Investments,
Concentration of Credit
Risk, Interest Rate Risk
Illinois funds 17,865,247 17,865,247 Credit Risk
Equity securities 6,662,695 6,662,695
Custodial Credit Risk,
Investments, Foreign
Currency Risk
Mutual funds, bond funds 2,346,715 2,346,715
Credit Risk, Interest Rate
Risk
Petty cash 11,325 -
Total deposits and investments $183,802,182 $184,133,715
49 77
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Reconciliation to financial statements
Per statement of net position
Cash and cash equivalents, primary
government
$73,421,058
Investments - primary government 10,216,223
Cash and cash equivalents, Lake
Forest Library
6,269,624
Per statement of net position, fiduciary
funds
Private Purpose Trust, money markets 13,655
Private Purpose Trust, equity
securities
519,035
Private Purpose Trust, mutual funds 495,198
Pension Trusts, cash 172,980
Pension Trusts, money markets 4,062,853
Pension Trusts, U.S. treasury
obligations
11,316,487
Pension Trusts, U.S. government
agencies
3,400,195
Pension Trusts, Municipal/corporate
bonds
11,125,412
Pension Trusts, mutual funds 58,859,929
Pension Trusts, real estate investment
fund
3,929,533
Total deposits and investments $183,802,182
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.
50 78
City of Lake Forest
Notes to Financial Statements
April 30, 2021
The valuation methods for recurring fair value measurements are as follows:
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.
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 $3,929,533 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).
City
Ap ril 30, 2021
Investment Type Level 1 Level 2 Level 3 Total
Equity securities $6,143,660 $-$-$6,143,660
Mutual funds, bond funds 2,125,762 --2,125,762
Mutual funds, other than bond funds 1,946,801 --1,946,801
Total $10,216,223 $-$-$10,216,223
Private Purpose Trust
Ap ril 30, 2021
Investment Type Level 1 Level 2 Level 3 Total
Equity securities $519,035 $-$-$519,035
Mutual funds, bond funds 220,953 --220,953
Mutual funds, other than bond funds 274,245 --274,245
Total $1,014,233 $-$-$1,014,233
Police Pension Fund
Ap ril 30, 2021
Investment Type Level 1 Level 2 Level 3 Total
U.S. treasury obligations $8,151,306 $-$-$8,151,306
U.S. government agencies -208,595 -208,595
Mutual funds, other than bond funds 26,252,509 --26,252,509
Corporate bonds -4,196,108 -4,196,108
Total $34,403,815 $4,404,703 $-$38,808,518
51 79
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Firefighter's Pension Fund
Ap ril 30, 2021
Investment Type Level 1 Level 2 Level 3 Total
U.S. treasury obligations $3,165,181 $-$-$3,165,181
U.S. government agencies -3,191,600 -3,191,600
Mutual funds, other than bond funds 32,607,420 --32,607,420
Municipal bonds -334,826 -334,826
Corporate bonds -6,594,478 -6,594,478
Total $35,772,601 $10,120,904 $-$45,893,505
Custodial Credit Risk
Deposits
Custodial credit risk 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 does not have any deposits exposed to custodial credit risk.
Investments
For an investment, 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 the possession of an outside party.
The City does not have any investments exposed to custodial credit risk.
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations.
As of April 30, 2021, the City's investments were rated as follows:
Investment Type
Standard &
Poors
Moody's
Investors
Services
Illinois funds AAAm Not rated
U.S. government agencies -
implicitly guaranteed Not rated to AA+Not rated to Aaa
Municipal bonds Not rated to AAA Aa2 to Aaa
Corporate bonds BBB- to AAA Baa3 to Aaa
Mutual funds - bond funds Not rated Not rated
52 80
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the value of an
investment.
As of April 30, 2021, 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
U.S. treasury obligations $8,151,306 $-$7,187,183 $964,123
U.S. government agencies 208,595 116,860 91,735 -
Corporate bonds 4,196,108 157,136 660,361 3,378,611
Total $12,556,009 $273,996 $7,939,279 $4,342,734
Firefighters' 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 $3,165,181 $-$487,114 $1,071,054 $1,607,013
U.S. government agencies 3,191,600 1,516 649,907 517,477 2,022,700
Municipal bonds 334,826 233,230 42,556 59,040 -
Corporate bonds 6,594,478 259,878 1,822,837 3,000,023 1,511,740
Total $13,286,085 $494,624 $3,002,414 $4,647,594 $5,141,453
The City and Private Purpose Trust have $2,346,715 invested in mutual funds, bond funds that have a maturity
of less than one year.
Money-Weighted Rate of Return
Police Pension Fund
For the year ended April 30, 2021, the annual money-weighted rate of return on the Police
Pension plan investments, net of pension plan investment expense, was 25.29 percent. 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, 2021, the annual money-weighted rate of return on the
Firefighters' Pension plan investments, net of pension plan investment expense, was 28.13
percent. The money-weighted rate of return expresses investment performance, net of
investment expense, adjusted for the changing amounts actually invested.
See Note 1 for further information on deposit and investment policies.
Receivables
All of the receivables on the balance sheet are expected to be collected within one year.
53 81
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Capital Assets
Capital asset activity for the year ended April 30, 2021, was as follows:
Beginning
Balance Additions Deletions
Ending
Balance
Governmental Activities
Capital assets not being depreciated:
Land and land improvements $40,168,317 $431,122 $-$40,599,439
Infrastructure - land 66,740,770 --66,740,770
Construction in progress 19,560 116,240 -135,800
Total capital assets not being
depreciated 106,928,647 547,362 -107,476,009
Capital assets being depreciated:
Infrastructure 188,028,723 266,235 -188,294,958
Buildings 30,002,059 --30,002,059
Improvements other than buildings 34,014,111 1,065,562 -35,079,673
Machinery and equipment 19,177,952 1,407,639 407,437 20,178,154
Total capital assets being depreciated 271,222,845 2,739,436 407,437 273,554,844
Total capital assets 378,151,492 3,286,798 407,437 381,030,853
Less accumulated depreciation for:
Infrastructure (134,902,356)(2,458,894)-(137,361,250)
Buildings (13,037,172)(658,228)-(13,695,400)
Improvements other than buildings (19,597,606)(1,265,463)-(20,863,069)
Machinery and equipment (15,061,764)(1,275,593)392,168 (15,945,189)
Total accumulated depreciation (182,598,898)(5,658,178)392,168 (187,864,908)
Net capital assets being depreciated 88,623,947 (2,918,742)15,269 85,689,936
Total governmental activities capital
assets, net of accumulated
depreciation $195,552,594 $(2,371,380)$15,269 $193,165,945
Depreciation expense was charged to functions as follows:
Governmental Activities
General Government $1,425,711
Highways and streets 2,601,247
Sanitation 101,410
Culture and recreation 1,012,953
Public safety 516,857
Total governmental activities depreciation expense $5,658,178
54 82
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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 456,342 -14,929 441,413
Capital assets being depreciated:
Buildings 27,020,235 --27,020,235
Improvements other than buildings 57,740,682 190,273 10,301 57,920,654
Machinery and equipment 5,497,324 150,605 54,315 5,593,614
Sanitary sewers and related property 31,057,754 --31,057,754
Total capital assets being depreciated 121,315,995 340,878 64,616 121,592,257
Total capital assets 121,772,337 340,878 79,545 122,033,670
Less accumulated depreciation for:
Buildings (17,609,560)(1,003,574)-(18,613,134)
Improvements other than buildings (25,459,559)(1,400,097)10,301 (26,849,355)
Machinery and equipment (3,882,504)(364,480)54,315 (4,192,669)
Sanitary sewers and related property (18,906,528)(573,775)-(19,480,303)
Total accumulated depreciation (65,858,151)(3,341,926)64,616 (69,135,461)
Net capital assets being depreciated 55,457,844 (3,001,048)-52,456,796
Business-type capital assets, net of
accumulated depreciation $55,914,186 $(3,001,048)$14,929 $52,898,209
Component Unit
Capital assets not being depreciated:
Land $70,000 $-$-$70,000
Art 168,500 --168,500
Total capital assets not being
depreciated 238,500 --238,500
Capital assets being depreciated:
Buildings 1,180,907 --1,180,907
Improvements other than buildings 2,271,093 --2,271,093
Machinery and equipment 3,892,724 280,024 350,944 3,821,804
Total capital assets being depreciated 7,344,724 280,024 350,944 7,273,804
Total capital assets 7,583,224 280,024 350,944 7,512,304
Less accumulated depreciation for:
Buildings (766,929)(19,713)-(786,642)
Improvements other than buildings (1,606,441)(63,615)-(1,670,056)
Machinery and equipment (2,361,593)(360,424)350,944 (2,371,073)
Total accumulated depreciation (4,734,963)(443,752)350,944 (4,827,771)
Net capital assets being depreciated 2,609,761 (163,728)-2,446,033
Total component units capital assets, net
of accumulated depreciation $2,848,261 $(163,728)$-$2,684,533
55 83
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Interfund Receivables/Payables, Advances and Transfers
Interfund Receivables/Payables
The following is a schedule of interfund receivables and payables including any overdrafts on
pooled cash and investment accounts:
Receivable Fund Payable Fund Am ount
Parks and Recreation Deerpath Golf Course $125,000
Capital Improvements
Laurel/W estern Redevelopment
TIF 624,815
Total, fund financial statements 749,815
Less interfund receivables created with internal service fund
eliminations (1,144,708)
Less government-wide eliminations (624,815)
Total internal balances, government-wide statement of net
position $(1,019,708)
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 Am ount
Amount Not
Due Within
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, interfund advances, government-wide statement of
net position $-
The principal purpose of this advance is 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.
56 84
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Transfers
The following is a schedule of interfund transfers:
Fund Transferred To Fund Transferred From Am ount Principal Purpose
Parks and Recreation General $802,000
Funding for parks and
recreation operations as
well as for debt service
payment
Water and Sewer General 6,500
Funding for budgeted salary
amounts
Internal service fund General 500
Funding for budgeted salary
amounts
Nonmajor government General 253,513
Funding for debt service
payment
Nonmajor government Nonmajor government 356,688
Funding for debt service
payment
Nonmajor government General 1,500,000
Funding for projects relating
to the purposes of the
Housing Trust as well as
Parks and Public Land
funds
Capital Improvement General 3,892,640
Funding for capital outlay
projects
Nonmajor enterprise Parks and Recreation 23,000
Funding for debt service
payment
Total, fund financial statements 6,834,841
Less government-wide eliminations (6,805,341)
Total transfers, government-wide statement of
activities $29,500
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.
57 85
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Long-Term Obligations
Long-term obligations activity for the year ended April 30, 2021, was as follows:
Beginning
Balance Increases Decreases
Ending
Balance
Am ounts Due
Within One
Year
Governmental Activities
Bonds and notes payable:
General obligation debt $29,541,957 $-$1,910,089 $27,631,868 $2,009,665
Premiums 798,997 -91,617 707,380 -
Total bonds and notes payable 30,340,954 -2,001,706 28,339,248 2,009,665
Other liabilities:
Compensated absences 2,210,488 2,613,952 2,656,676 2,167,764 120,000
Total OPEB liability 2,523,677 121,290 586,320 2,058,647 -
Net pension liability 62,017,758 17,944,742 35,834,983 44,127,517 -
Total other liabilities 66,751,923 20,679,984 39,077,979 48,353,928 120,000
Total governmental activities long-
term liabilities $97,092,877 $20,679,984 $41,079,685 $76,693,176 $2,129,665
Business-Type Activities
Bonds and notes payable:
General obligation debt $16,348,978 $-$1,934,413 $14,414,565 $1,871,947
Premium 514,441 -172,976 341,465 -
Total bonds and notes payable 16,863,419 -2,107,389 14,756,030 1,871,947
Other liabilities:
Compensated absences 261,513 248,838 242,747 267,604 5,000
Total OPEB liability 246,631 11,404 64,479 193,556 -
Net pension liability 660,638 1,145,058 1,805,696 --
Total other liabilities 1,168,782 1,405,300 2,112,922 461,160 5,000
Total business-type activities long-
term liabilities $18,032,201 $1,405,300 $4,220,311 $15,217,190 $1,876,947
Component Unit
Other liabilities:
Compensated absences $149,402 $99,187 $139,667 $108,922 $5,000
Capital leases 82,475 -34,410 48,065 34,756
Total OPEB liability 200,580 6,843 47,546 159,877 -
Net pension liability 521,685 890,795 1,412,480 --
Total other liabilities 954,142 996,825 1,634,103 316,864 39,756
Total component units long-term
liabilities $954,142 $996,825 $1,634,103 $316,864 $39,756
58 86
City of Lake Forest
Notes to Financial Statements
April 30, 2021
General Obligation Debt
All general obligation debt payable is backed by the full faith and credit of the City. Debt in the
governmental funds will be retired by future property tax levies accumulated by the Debt Service
Fund. Business-type activities debt is payable by revenues from user fees of those funds or, if the
revenues are not sufficient, by future tax levies.
Governmental Activities
General Obligation Debt
Date of
Issue
Final
Maturity
Interest
Rates
Original
Indebtedness
Balance April
30, 2021
Special Service Area 25 5/1/2003 12/15/2022 1.95-2.95%$1,050,000 $150,000
Special Service Area 26 10/7/2003 12/15/2022 2.50-3.40%276,500 40,444
Special Service Area 29 12/20/2004 12/15/2023 2.55-3.65%2,000,000 430,989
2013 Series 9/16/2013 12/15/2032 2.00-4.00%9,715,000 8,455,000
2015 Series 8/3/2015 12/15/2036 2.50-3.75%9,780,000 8,760,000
2019 Series Refunding 12/19/2019 12/15/2032 2.00-5.00%10,751,022 9,795,435
Total governmental activities, general obligation debt $27,631,868
Business-Type Activities
General Obligation Debt
Date of
Issue
Final
Maturity
Interest
Rates
Original
Indebtedness
Balance April
30, 2021
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 5,119,565
Total business-type activities, general obligation debt $14,414,565
Debt service requirements to maturity are as follows:
Governmental Activities Business-Type Activities
General Obligation Debt General Obligation Debt
Years Principal Interest Principal Interest
2022 $2,009,665 $957,822 $1,871,947 $526,731
2023 2,087,958 878,328 1,976,252 433,540
2024 2,069,245 795,704 1,786,366 334,721
2025 1,475,000 712,525 525,000 260,853
2026 1,540,000 657,600 535,000 247,728
2027-2031 10,575,000 2,394,170 2,895,000 1,027,108
2032-2036 7,525,000 592,736 3,335,000 582,625
2037-2038 350,000 13,125 1,490,000 78,750
Total $27,631,868 $7,002,010 $14,414,565 $3,492,056
Other Debt Information
Estimated payments of compensated absences, total OPEB liability and net pension liability are not
included in the debt service requirement schedules. The 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 attributable to governmental activities will be liquidated primarily by the General Fund.
59 87
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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, 2021, are as follows:
Component Unit
Years Principal Interest Total
2022 $34,756 $322 $35,078
2023 13,309 30 13,339
Total $48,065 $352 $48,417
Fund Balances
Governmental Funds
Governmental fund balances reported on the fund financial statements at April 30, 2021, include
the following:
General
Fund
Parks and
Recreation
Fund
Capital
Improvements
Fund
General
Cemetery
Fund
Nonmajor
Government
al Funds Total
Fund Balances
Nonspendable:
Prepaid items $103,901 $-$-$-$28,878 $132,779
Inventories 104,760 ----104,760
Subtotal 208,661 ---28,878 237,539
Restricted for:
Culture and
recreation -1,435,768 --1,641,443 3,077,211
Highway and streets ----1,344,272 1,344,272
Public safety, fire ----350,664 350,664
Public safety, police ----874,186 874,186
Cemetery perpetual
care ---11,353,154 -11,353,154
Affordable housing ----1,647,067 1,647,067
Capital projects --16,190,839 --16,190,839
Debt service ----1,900,735 1,900,735
Subtotal -1,435,768 16,190,839 11,353,154 7,758,367 36,738,128
Unassigned:28,148,267 ---(304,215)27,844,052
Total fund
balances $28,356,928 $1,435,768 $16,190,839 $11,353,154 $7,483,030 $64,819,719
60 88
City of Lake Forest
Notes to Financial Statements
April 30, 2021
4.Other Information
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, benefit 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. This report is also
available for download at www.imrf.org.
For the year ended April 30, 2021, the City recognized the following balances in the government-wide
financial statements:
Total
Pension
Liability
Net Pension
Liability
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension
Expense
IMRF $115,430,285 $-$1,410,752 $10,872,405 $889,698
Police Pension Plan 73,432,245 30,232,313 4,459,766 4,520,746 3,538,008
Firefighters' Pension Plan 63,740,015 13,895,204 4,228,516 5,957,285 1,705,170
Total $252,602,545 $44,127,517 $10,099,034 $21,350,436 $6,132,876
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 percent 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 percent for each year thereafter to a maximum of 75 percent 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
percent of their final rate of earnings for the first 15 years of service credit, plus 2 percent for
each year of service after 15 years to a maximum of 75 percent 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 ever year
after retirement, upon reaching age 67, by the lesser of 3 percent of the original pension
amount or 1/2 of the increase in the Consumer Price Index of the original pension amount.
61 89
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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, 2020, the measurement date, membership in the plan was as follows:
Retirees and beneficiaries 297
Inactive, nonretired members 186
Active members 187
Total 670
Contributions
As set by statute, City and Library employees participating in IMRF are required to contribute
4.50 percent 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 2020 was 11.92 percent 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, 2020 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, 2020 using the following actuarial methods and assumptions:
Actuarial cost method Entry Age Normal
Asset valuation method Market Value
Actuarial assumptions
Investment Rate of Return 7.25%
Salary increases 2.85% to 13.75%,
including inflation
Price inflation 2.25%
62 90
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Mortality
For nondisabled retirees, the Pub-2010, Amount-W eighted, below median income, General,
Retiree, Male (adjusted 106 percent) and Female (adjusted 105 percent) tables and future
mortality improvements projected using scale MP-2020. For disabled retirees, the Pub-2010,
Amount-W eighted, below median income, General, Disabled Retiree, Male and Female (both
unadjusted) tables and future mortality improvements projected using scale MP-2020. For
active members, the Pub-2010, Amount-W eighted, below median income, General,
Em ployee, Male and Female (both unadjusted) tables and future mortality improvements
projected using scale MP-2020.
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 %6.35 %5.00
International equities 18.00 7.65 6.00
Fixed income 28.00 1.40 1.30
Real estate 9.00 7.10 6.20
Alternatives 7.00
Private equity 10.35 6.95
Hedge funds --
Commodities 3.90 2.85
Cash equivalents 1.00 0.70 0.70
Discount Rate
The discount rate used to measure the total pension liability for IMRF was 7.25 percent. The
discount rate calculated using the December 31, 2019 measurement date was 7.25 percent.
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.
63 91
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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 the net pension liability/(asset) of the City calculated
using the discount rate of 7.25 percent 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
percent) or 1 percentage point higher (8.25 percent) than the current rate:
1% Decrease
Current
Discount Rate 1% Increase
City:
Total pension liability $113,838,442 $102,234,444 $92,944,044
Plan fiduciary net position 106,588,373 106,588,373 106,588,373
Net pension liability/(asset)$7,250,069 $(4,353,929)$(13,644,329)
Library:
Total pension liability $14,693,619 $13,195,841 $11,996,689
Plan fiduciary net position 13,647,060 13,647,060 13,647,060
Net pension liability/(asset)$1,046,559 $(451,219)$(1,650,371)
Total:
Total pension liability $128,532,061 $115,430,285 $104,940,733
Plan fiduciary net position 120,235,433 120,235,433 120,235,433
Net pension liability/(asset)$8,296,628 $(4,805,148)$(15,294,700)
Changes in Net Pension Liability/(Asset)
The changes in net pension liability/(asset)for the calendar year ended December 31, 2020
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, 2019 $100,882,053 $96,060,540 $4,821,513
Service cost 1,268,902 -1,268,902
Interest on total pension liability 7,326,612 -7,326,612
Differences between expected and actual
experience of the total pension liability (786,697)-(786,697)
Change of assumptions (783,863)-(783,863)
Benefit payments, including refunds of
employee contributions (5,672,563)(5,672,563)-
Contributions, employer -1,525,544 (1,525,544)
Contributions, employee -610,488 (610,488)
Net investment income -14,246,702 (14,246,702)
Other (net transfer)-(182,338)182,338
Balances at December 31, 2020 $102,234,444 $106,588,373 $(4,353,929)
64 92
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Increase (Decrease)
Library:
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/(Asset)
(a) - (b)
Balances at December 31, 2019 $13,077,695 $12,556,010 $521,685
Service cost 131,502 -131,502
Interest on total pension liability 759,293 -759,293
Differences between expected and actual
experience of the total pension liability (81,529)-(81,529)
Change of assumptions (103,244)-(103,244)
Benefit payments, including refunds of
employee contributions (587,876)(587,876)-
Contributions, employer -158,100 (158,100)
Contributions, employee -63,268 (63,268)
Net investment income -1,476,456 (1,476,456)
Other (net transfer)-(18,898)18,898
Balances at December 31, 2020 $13,195,841 $13,647,060 $(451,219)
Total:
Balances at December 31, 2019 $113,959,748 $108,616,550 $5,343,198
Service cost 1,400,404 -1,400,404
Interest on total pension liability 8,085,905 -8,085,905
Differences between expected and actual
experience of the total pension liability (868,226)-(868,226)
Change of assumptions (887,107)-(887,107)
Benefit payments, including refunds of
employee contributions (6,260,439)(6,260,439)-
Contributions, employer -1,683,644 (1,683,644)
Contributions, employee -673,756 (673,756)
Net investment income -15,723,158 (15,723,158)
Other (net transfer)-(201,236)201,236
Balances at December 31, 2020 $115,430,285 $120,235,433 $(4,805,148)
Plan fiduciary net position as a percentage of
the total pension liability %104.16
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended April 30, 2021, the City recognized pension expense of $889,698. 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 $565,970 $535,010
Assumption changes 143,882 546,645
Net difference between projected and actual earnings on pension
plan investments -8,769,796
Contributions subsequent to the measurement date 566,255 -
Total $1,276,107 $9,851,451
65 93
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Library:
Difference between expected and actual experience $59,717 $55,446
Assumption changes 15,181 56,651
Net difference between projected and actual earnings on pension
plan investments -908,857
Contributions subsequent to the measurement date 59,747 -
Total $134,645 $1,020,954
Total:
Difference between expected and actual experience $625,687 $590,456
Assumption changes 159,063 603,296
Net difference between projected and actual earnings on pension
plan investments -9,678,653
Contributions subsequent to the measurement date 626,002 -
Total $1,410,752 $10,872,405
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, 2022. The remaining amounts reported as
deferred outflows and inflows of resources related to pensions is $(10,087,655) and will be
recognized in pension expense as follows:
Year Ending December 31,City Library Total
2021 $(2,635,306)$(272,726)$(2,908,032)
2022 (1,531,313)(158,474)(1,689,787)
2023 (3,525,534)(364,854)(3,890,388)
2024 (1,449,446)(150,002)(1,599,448)
Total $(9,141,599)$(946,056)$(10,087,655)
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.
66 94
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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 percent of such salary for each additional
year of service over 20 years up to 30 years to a maximum of 75 percent of such salary.
Em ployees 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 percent of the original pension and 3 percent 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 percent 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 percent 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 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 percent or
one-half the annual unadjusted percentage increase in the CPI, whichever is less.
Plan Membership
At April 30, 2021, the Police Pension membership consisted of:
Retirees and beneficiaries 44
Inactive, nonretired members 10
Active members 38
Total 92
Contributions
Covered employees are required to contribute 9.91 percent 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 percent
funded by the year 2040. The City's actuarially determined contribution rate for the fiscal year
ending April 30, 2021 was 75.80 percent of annual covered payroll.
Net Pension Liability/(Asset)
The net pension liability/(asset) was measured as of April 30, 2021 and the total pension
liability used to calculate the net pension liability/(asset) was determined by an annual
actuarial valuation as of that date.
67 95
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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.
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation performed as of April 30,
2021 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 for active lives, inactive lives, survivor lives and disabled lives were based
on the PubS-2010 Employee Mortality, projected 5 years past the valuation date with
Scale MP-2020. Ten percent of active deaths are assumed to be in the line of duty. The
actuarial assumptions were based on the results of an actuarial experience study
conducted by the Illinois Department of Insurance dated October 5, 2017.
Discount Rate
The discount rate used to measure the total pension liability for the Police Pension Plan was
6.50 percent, the same as the prior valuation. The projection of cash flows used to determine
the discount rate assumed that member contributions will be made at the current contribution
rate and that City contributions will be made at rates equal to the difference between actuarially
determined contribution rates and the member rate. Based on those assumptions, the Plan’s
fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on Plan
investments was applied to all periods of projected benefit payments to determine the total
pension liability.
68 96
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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 percent 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 percent) or 1 percentage point higher (7.50
percent) than the current rate:
1% Decrease
Current
Discount Rate 1% Increase
Total pension liability $83,996,580 $73,432,245 $64,816,382
Plan fiduciary net position 43,199,932 43,199,932 43,199,932
Net pension liability $40,796,648 $30,232,313 $21,616,450
Changes in Net Pension Liability/(Asset)
The City's changes in net pension liability/(asset) for the year ended April 30, 2021 was as
follows:
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/Asset
(a) - (b)
Balances at April 30, 2020 $69,868,229 $33,562,716 $36,305,513
Service cost 1,053,151 -1,053,151
Interest on total pension liability 4,511,442 -4,511,442
Differences between expected and actual
experience of the total pension liability 1,028,579 -1,028,579
Benefit payments, including refunds of
employee contributions (3,029,156)(3,029,156)-
Contributions, employer -3,581,389 (3,581,389)
Contributions, employee -427,305 (427,305)
Net investment income -8,702,747 (8,702,747)
Administration -(45,069)45,069
Balances at April 30, 2021 $73,432,245 $43,199,932 $30,232,313
Plan fiduciary net position as a percentage of
the total pension liability %58.83
69 97
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended April 30, 2021, the City recognized pension expense of $3,538,008. 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 $1,640,176 $786,565
Assumption changes 2,819,590 -
Net difference between projected and actual earnings on
pension plan investments -3,734,181
Total $4,459,766 $4,520,746
The amounts reported as deferred outflows and inflows of resources related to pensions is
$(60,980) and will be recognized in pension expense as follows:
Year Ending April 30,Am ount
2022 $756,867
2023 762,426
2024 (487,829)
2025 (1,092,444)
Total $(60,980)
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.
70 98
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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 percent of such monthly salary for
each additional m onth over 20 years of service through 30 years of service to a maximum of
75 percent 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 percent of the original pension and 3 percent
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 percent 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 percent 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 percent or
one-half the annual unadjusted percentage increase in the CPI, whichever is less.
Plan Membership
At April 30, 2021, the Firefighters' Pension Plan membership consisted of:
Retirees and beneficiaries 45
Inactive, nonretired members 2
Active members 33
Total 80
Contributions
Participants contribute a fixed percentage of their base salary to the plans. At April 30, 2021,
the contribution percentage was 9.455 percent. 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 percent funded by the year 2040. The City's
actuarially determined contribution rate for the fiscal year ending April 30, 2021 was 58.83
percent of annual covered payroll.
Net Pension Liability/(Asset)
The net pension liability/(asset) was measured as of April 30, 2021 and the total pension
liability used to calculate the net pension liability/(asset) was determined by an annual
actuarial valuation as of that date.
71 99
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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.
Actuarial Assumptions
The total pension liability was determined by an actuarial valuation performed as of April 30,
2021 using the following actuarial methods and assumptions:
Actuarial cost method Entry Age
Asset valuation method 5-year average Market Value
Actuarial assumptions
Interest rate 6.5%
Inflation 2.50%
Projected salary increases Service based
Cost-of-living adjustments Tier 1: 3.00% Tier 2: 1.25%
Mortality rates for active lives, inactive lives, survivor lives and disabled lives were based on
the PubS-2010 Employee Mortality, projected 5 years past the valuation date with Scale MP-
2020. Twenty percent of active deaths are assumed to be in the line of duty. The actuarial
assumptions were based on the results of an actuarial experience study conducted by the
Illinois Department of Insurance dated October 5, 2017.
Discount Rate
The discount rate used to measure the total pension liability for the Firefighters' Pension Plan
was 6.50 percent, the same as the prior valuation. The projection of cash flows used to
determine the discount rate assumed that member contributions will be made at the current
contribution rate and that City contributions will be made at rates equal to the difference
between actuarially determined contribution rates and the member rate. Based on those
assumptions, the Plan’s fiduciary net position was projected to be available to make all
projected future benefit payments of current plan members. Therefore, the long-term
expected rate of return on Plan investments was applied to all periods of projected benefit
payments to determine the total pension liability.
72 100
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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 percent 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 percent) or 1
percentage point higher (7.50 percent) than the current rate:
1% Decrease
Current
Discount Rate 1% Increase
Total pension liability $72,753,647 $63,740,015 $56,383,988
Plan fiduciary net position 49,844,811 49,844,811 49,844,811
Net pension liability $22,908,836 $13,895,204 $6,539,177
Changes in Net Pension Liability/(Asset)
The City's changes in net pension liability/(asset) for the year ended April 30, 2021 was as
follows:
Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/Asset
(a) - (b)
Balances at April 30, 2020 $60,620,657 $39,069,288 $21,551,369
Service cost 1,017,451 -1,017,451
Interest on total pension liability 3,912,242 -3,912,242
Differences between expected and actual
experience of the total pension liability 1,089,198 -1,089,198
Benefit payments, including refunds of
employee contributions (2,899,533)(2,899,533)-
Contributions, employer -2,567,216 (2,567,216)
Contributions, employee -349,655 (349,655)
Net investment income -10,796,842 (10,796,842)
Administration -(38,657)38,657
Balances at April 30, 2021 $63,740,015 $49,844,811 $13,895,204
Plan fiduciary net position as a percentage of
the total pension liability %78.20
73 101
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
For the year ended April 30, 2021, the City recognized pension expense of $1,705,170. 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 $1,177,093 $-
Assumption changes 3,051,423 -
Net difference between projected and actual earnings on
pension plan investments -5,957,285
Total $4,228,516 $5,957,285
The amounts reported as deferred outflows and inflows of resources related to pensions is
$(1,728,769) and will be recognized in pension expense as follows:
Year Ending April 30,Am ount
2022 $(174,309)
2023 (339,347)
2024 (265,670)
2025 (1,130,976)
2026 181,533
Total $(1,728,769)
74 102
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Pension Segment Information
Fiduciary Net Position
Pension Trust
Police
Pension
Firefighters'
Pension Total
Assets
Cash $148,721 $24,259 $172,980
Money markets 213,021 3,849,832 4,062,853
Investments:
U.S. treasury obligations 8,151,306 3,165,181 11,316,487
U.S. government agencies 208,595 3,191,600 3,400,195
Municipal/corporate bonds 4,196,108 6,929,304 11,125,412
Mutual funds 26,252,509 32,607,420 58,859,929
Real estate investment fund 3,929,533 -3,929,533
Receivables
Interest 55,396 94,389 149,785
Prepaid items 11,203 4,129 15,332
Due from primary government 46,581 26,381 72,962
Total assets 43,212,973 49,892,495 93,105,468
Liabilities
Accounts payable 13,041 47,684 60,725
Total liabilities 13,041 47,684 60,725
Net Position
Restricted for pension benefits $43,199,932 $49,844,811 $93,044,743
75 103
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Changes in Plan Net Position
Pension Trust
Police
Pension
Firefighters'
Pension Total
Additions
Contributions:
Employer $3,581,389 $2,567,216 $6,148,605
Employee 427,305 349,655 776,960
Total contributions 4,008,694 2,916,871 6,925,565
Investment income:
Interest 562,525 747,996 1,310,521
Net appreciation in fair value of investments 8,227,219 10,113,506 18,340,725
Total investment income 8,789,744 10,861,502 19,651,246
Less investment expense (87,734)(64,760)(152,494)
Net investment income 8,702,010 10,796,742 19,498,752
Miscellaneous 737 100 837
Total additions 12,711,441 13,713,713 26,425,154
Deductions
Pension benefits and refunds 3,029,156 2,899,533 5,928,689
Other administrative expenses 45,069 38,657 83,726
Total deductions 3,074,225 2,938,190 6,012,415
Change in net position 9,637,216 10,775,523 20,412,739
Net Position, Beginning 33,562,716 39,069,288 72,632,004
Net Position, Ending $43,199,932 $49,844,811 $93,044,743
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.
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.
76 104
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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 m anagement 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. Each member 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
2019-2020 $213,395 $262,847 $273,503 $202,739
2020-2021 202,739 307,508 292,523 217,724
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.
Changes in the balances of claims liabilities for the years ended April 30, 2021 and 2020 are
as follows:
Beginning of End of
Fiscal Year Changes in Claim Fiscal Year
Liability Estimates Payments Liability
2019-2020 $568,106 $4,535,326 $4,534,148 $569,284
2020-2021 569,284 4,737,417 4,530,320 776,381
77 105
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Joint Ventures
Solid Waste Agency of Lake County
The City of Lake Forest and 41 other municipalities jointly operate the Solid W aste Agency of Lake
County, which is called 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.
To obtain the Agency's financial statements, contact the Solid W aste Agency of Lake County,
Illinois at 1311 N. Estes Street, Gurnee Illinois 60031
The City does not have an equity interest in the Solid W aste Agency of Lake County.
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.
78 106
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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, 2021, the following employees were covered by the benefit terms:
City Library
Inactive plan members or beneficiaries currently receiving
benefit payments 46 5
Active plan members 196 24
Total 242 29
Total OPEB Liability
The City's total OPEB liability of $2,252,203 was measured as of April 30, 2021 and was
determined by an actuarial valuation as of that date.The Library's total OPEB liability of $159,877
was measured as of April 30, 2021 and was determined by an actuarial valuation as of that date.
79 107
City of Lake Forest
Notes to Financial Statements
April 30, 2021
Actuarial Assumptions and Other Inputs
For both the City and Library, the total OPEB liability in the April 30, 2021 actuarial valuation was
determined using the following actuarial assumptions and other inputs, applied to all periods
included in the measurement, unless otherwise specified:
Inflation 2.25%
Salary increases 2.50
Healthcare cost trend rates 6.00% - 5.50% 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
improvements rates, for IMRF members. For police and fire members, mortality rates were based
on the PubS-2010(A) Study improved to 2017 using MP-2019 improvement rates.
The actuarial assumptions used in the April 30, 2021 valuation were based on the results of an
actuarial experience study dated November 8, 2017.
Changes in the Total OPEB Liability
City- Total
OPEB Liability
Library- Total
OPEB Liability
Balances at April 30, 2020 $2,770,308 $200,580
Changes for the year:
Service cost 64,125 2,014
Interest 68,569 4,829
Differences between expected and actual experience (473,423)(19,803)
Changes in assumptions or other inputs 6,339 (3,818)
Benefit payments (183,715)(23,925)
Net changes (518,105)(40,703)
Balances at April 30, 2021 $2,252,203 $159,877
Changes of assumptions and other inputs reflect a change in the discount rate from 2.56 percent
in 2020 to 2.27 percent in 2021 for both the City and the Library.
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
The following presents the total OPEB liability of the City and the Library, as well as what the total
OPEB liability would be for each if it were calculated using a discount rate that is 1-percentage-
point lower (1.3 percent) or 1-percentage-point higher (3.3 percent) than the current discount rate:
1% Decrease Discount Rate 1% Increase
Total OPEB liability, City $2,398,345 $2,252,203 $2,113,139
Total OPEB liability, Library $162,859 $159,877 $156,965
80 108
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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 total
OPEB liability would be for each if it were calculated using healthcare cost trend rates that are 1-
percentage-point lower (5.0 percent decreasing to 4.5 percent) or 1-percentage-point higher (7.0
percent decreasing to 6.5 percent) than the current healthcare cost trend rates:
1% Decrease
Healthcare
Cost Trend
Rates 1% Increase
Total OPEB liability, City $2,011,653 $2,252,203 $2,535,652
Total OPEB liability, Library $156,041 $159,877 $163,922
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to OPEB
For the year ended April 30, 2021, the City recognized OPEB expense of $127,283. At April 30,
2021, 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
Differences between expected and actual experience $-$431,674
Changes of assumptions or other inputs 328,821 -
Total $328,821 $431,674
For the year ended April 30, 2021, the Library recognized OPEB expense of $4,011. At April 30,
2021, 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
Differences between expected and actual experience $-$16,737
Changes of assumptions or other inputs 6,127 3,226
Total $6,127 $19,963
81 109
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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
2022 $(5,411)$(2,832)
2023 (5,411)(2,832)
2024 (5,411)(2,832)
2025 (5,411)(2,832)
2026 (5,411)(2,832)
Thereafter (75,798)324
Total $(102,853)$(13,836)
Subsequent Event
The federal government passed the American Rescue Plan Act on March 11, 2021 to respond to the
COVID-19 public health emergency and its negative economic impacts. Amounts were appropriated
for fiscal year 2021 to units of local government to mitigate the fiscal effects stemming from the public
health emergency. The City’s award is $2,643,571, which will be used for eligible expenses under
ARPA. The City will receive 50 percent of the funds in fiscal year 2022, with the remaining expected a
year later. The funds are to cover costs incurred by December 31, 2024.
On August 19, 2021 the City issued general obligation refunding bonds in the amount of $7,590,000
with an interest rate of 2.00 percent. This amount will be used to refund $8,020,000 of the City's 2013
series bonds.
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 development of the site. The City entered into a Property Purchase Agreement with Focus
Acquisition Company LLC for the sale and redevelopment of all the developable land within the
district. Following environmental remediation and site preparation required by the City, as well as
the completion of contingency and inspection periods under the agreement, the sale of the
property was closed in September 2016. The purchase price of the City property was $12 million,
consisting of $5.625 million paid to the City at closing and a TIF Note of $6.375 million executed
between the City and the developer. The TIF Note was subsequently assigned by the developer
to the City to allow repayment of the note from future TIF increment. As of April 30, 2021, the City
received $857,998 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, 2021.
A redevelopm ent agreement between the City and developer was also executed in September
2016. As of April 30, 2021, 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
2021, 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. Seven (7) single family homes are completed and have been sold. Five (5) vacant single
family lots remain.
82 110
City of Lake Forest
Notes to Financial Statements
April 30, 2021
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 2020
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
When they become effective, application of these standards may restate portions of these financial
statements.
83 111
REQUIRED SUPPLEMENTAR Y INFORMAT ION
112
City of Lake Forest
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual - General Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Revenues
Taxes
Property $20,230,689 $20,230,689 $20,128,373 $(102,316)
Other taxes 2,427,249 2,427,249 2,371,746 (55,503)
Intergovernmental 4,628,374 4,628,374 6,591,951 1,963,577
Licenses and permits 2,262,630 2,262,630 3,133,137 870,507
Fines, forfeitures and penalties 226,500 226,500 260,726 34,226
Charges for services 4,320,537 4,320,537 4,358,718 38,181
Grants and contributions --857,585 857,585
Investment income 550,150 550,150 109,451 (440,699)
Miscellaneous revenues 1,277,500 1,277,500 1,294,224 16,724
Total revenues 35,923,629 35,923,629 39,105,911 3,182,282
Expenditures
General government 11,258,915 11,907,372 10,436,328 1,471,044
Highways and streets 2,631,198 2,655,321 2,643,326 11,995
Sanitation 2,507,366 2,507,366 2,628,512 (121,146)
Public safety 18,515,269 18,554,955 18,163,049 391,906
Contingency 3,700,824 3,700,824 -3,700,824
Total expenditures 38,613,572 39,325,838 33,871,215 5,454,623
Excess (deficiency) of revenues
over (under) expenditures (2,689,943)(3,402,209)5,234,696 8,636,905
Other Financing Sources (Uses)
Transfers out (964,222)(1,383,222)(6,455,153)(5,071,931)
Total other financing sources
(uses)(964,222)(1,383,222)(6,455,153)(5,071,931)
Net change in fund balance $(3,654,165)$(4,785,431)(1,220,457)$3,564,974
Fund Balance, Beginning 29,577,385
Fund Balance, Ending $28,356,928
See notes to required supplementary information
84 113
City of Lake Forest
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual - Parks and Recreation Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Revenues
Property taxes $5,898,289 $5,898,289 $5,866,617 $(31,672)
Intergovernmental 40,000 40,000 57,390 17,390
Charges for services 2,298,976 2,298,976 1,520,239 (778,737)
Grants and contributions 188,000 188,000 214,577 26,577
Investment income 87,000 87,000 8,962 (78,038)
Miscellaneous revenues 30,500 30,500 8,136 (22,364)
Total revenues 8,542,765 8,542,765 7,675,921 (866,844)
Expenditures
Current:
Culture and recreation 9,464,265 9,489,564 8,069,319 1,420,245
Capital Outlay 316,686 374,999 251,758 123,241
Contingency 1,010,956 1,010,956 -1,010,956
Total expenditures 10,791,907 10,875,519 8,321,077 2,554,442
Excess (deficiency) of revenues
over (under) expenditures (2,249,142)(2,332,754)(645,156)1,687,598
Other Financing Sources (Uses)
Transfers in 285,000 285,000 802,000 517,000
Transfers out (90,000)(90,000)(23,000)67,000
Proceeds from capital asset sales --9,323 9,323
Total other financing sources
(uses)195,000 195,000 788,323 593,323
Net change in fund balance $(2,054,142)$(2,137,754)143,167 $2,280,921
Fund Balance, Beginning 1,292,601
Fund Balance, Ending $1,435,768
See notes to required supplementary information
85 114
City of Lake Forest
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual - General Cemetery Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Revenues
Charges for services $767,900 $767,900 $796,458 $28,558
Grants and contributions 12,000 12,000 12,915 915
Investment income 50,000 50,000 3,336,237 3,286,237
Total revenues 829,900 829,900 4,145,610 3,315,710
Expenditures
Current:
General government 667,224 667,224 685,410 (18,186)
Capital Outlay 1,930,000 1,945,299 172,616 1,772,683
Contingency 261,252 261,252 -261,252
Total expenditures 2,858,476 2,873,775 858,026 2,015,749
Excess (deficiency) of revenues
over (under) expenditures (2,028,576)(2,043,875)3,287,584 5,331,459
Other Financing Sources (Uses)
Refunding debt issued 1,600,000 1,600,000 -(1,600,000)
Total other financing sources
(uses)1,600,000 1,600,000 -(1,600,000)
Net change in fund balance $(428,576)$(443,875)3,287,584 $3,731,459
Fund Balance, Beginning 8,065,570
Fund Balance, Ending $11,353,154
See notes to required supplementary information
86 115
See notes to required supplementary information
87
City of Lake Forest
Illinois Municipal Retirement Fund
Schedule of Changes in the City's Net Pension Liability and Related Ratios
Past Six Fiscal Years
City Library Total City Library Total City Library Total
Total pension liability
Service cost 1,549,831$ 208,143$ 1,757,974$ 1,315,386$ 160,837$ 1,476,223$ 1,230,871$ 146,913$ 1,377,784$
Interest on total pension liability 7,086,670 951,742 8,038,412 6,584,652 668,406 7,253,058 6,690,906 767,094 7,458,000
Differences between expected and
actual experience of the total pension liability 796,382 106,954 903,336 (689,342) (84,288) (773,630) 79,717 9,515 89,232
Changes of assumptions 103,436 13,891 117,327 (209,390) (25,603) (234,993) (2,740,693) (327,120) (3,067,813)
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) (4,566,385) (558,348) (5,124,733) (4,708,228) (561,958) (5,270,186)
Net change in total pension liability (9,230,623) (1,239,675) (10,470,298) 2,434,921 161,004 2,595,925 552,573 34,444 587,017
Total pension liability - beginning 96,324,203 12,936,367 109,260,570 87,093,580 11,696,692 98,790,272 89,528,501 11,857,696 101,386,197
Total pension liability - ending (a)87,093,580$ 11,696,692$ 98,790,272$ 89,528,501$ 11,857,696$ 101,386,197$ 90,081,074$ 11,892,140$ 101,973,214$
Plan fiduciary net position
Employer contributions 1,757,095$ 235,978$ 1,993,073$ 1,494,964$ 182,795$ 1,677,759$ 1,485,109$ 177,258$ 1,662,367$
Employee contributions 664,444 89,235 753,679 558,977 68,348 627,325 532,665 63,577 596,242
Net investment income 442,808 59,469 502,277 5,250,256 641,968 5,892,224 14,307,003 1,707,636 16,014,639
Benefit payments, including refunds of member
contributions (4,968,065) (667,212) (5,635,277) (4,566,385) (558,348) (5,124,733) (4,708,228) (561,958) (5,270,186)
Other (net transfer)(12,005,830) (1,612,386) (13,618,216) 262,841 32,138 294,979 (1,329,766) (158,716) (1,488,482)
Net change in plan fiduciary net position (14,109,548) (1,894,916) (16,004,464) 3,000,653 366,901 3,367,554 10,286,783 1,227,797 11,514,580
Plan fiduciary net position - beginning 89,834,842 12,064,844 101,899,686 75,725,294 10,169,928 85,895,222 78,725,947 10,536,829 89,262,776
Plan fiduciary net position - ending (b)75,725,294$ 10,169,928$ 85,895,222$ 78,725,947$ 10,536,829$ 89,262,776$ 89,012,730$ 11,764,626$ 100,777,356$
Employer's net pension liability - ending (a) - (b)11,368,286$ 1,526,764$ 12,895,050$ 10,802,554$ 1,320,867$ 12,123,421$ 1,068,344$ 127,514$ 1,195,858$
Plan fiduciary net position as a percentage of
the total pension liability 86.95%88.04%98.83%
Covered payroll 13,391,112$ 13,135,941$ 13,224,884$
Employer's net pension liability as a percentage
of covered payroll 96.30%92.29%9.04%
Notes to Schedule:
20172016
The City implemented GASB Statement No. 68 in fiscal year 2016. Information prior to fiscal year 2016 is not available.
2018
116
See notes to required supplementary information
88
City of Lake Forest
Illinois Municipal Retirement Fund
Schedule of Changes in the City's Net Pension Liability and Related Ratios
Past Six Fiscal Years
City Library Total City Library Total City Library Total
Total pension liability
Service cost 1,162,585$ 120,326$ 1,282,911$ 1,244,941$ 134,702$ 1,379,643$ 1,268,902 131,502 1,400,404$
Interest on total pension liability 6,788,684 702,616 7,491,300 6,990,156 756,331 7,746,487 7,326,612 759,293 8,085,905
Differences between expected and
actual experience of the total pension liability 819,901 84,858 904,759 1,465,195 158,533 1,623,728 (786,697) (81,529) (868,226)
Changes of assumptions 2,657,676 258,123 2,915,799 (58,022) 58,022 - (783,863) (103,244) (887,107)
Transfer of liability - - - - - - - - -
Benefit payments, including refunds of member
contributions (4,949,110) (512,224) (5,461,334) (5,321,027) (575,732) (5,896,759) (5,672,563) (587,876) (6,260,439)
Net change in total pension liability 6,479,736 653,699 7,133,435 4,321,243 531,856 4,853,099 1,352,391 118,146 1,470,537
Total pension liability - beginning 90,081,074 11,892,140 101,973,214 96,560,810 12,545,839 109,106,649 100,882,053 13,077,695 113,959,748
Total pension liability - ending (a)96,560,810$ 12,545,839$ 109,106,649$ 100,882,053$ 13,077,695$ 113,959,748$ 102,234,444$ 13,195,841$ 115,430,285$
Plan fiduciary net position
Employer contributions 1,535,144$ 158,885$ 1,694,029$ 1,224,123$ 132,449$ 1,356,572$ 1,525,544 158,100 1,683,644$
Employee contributions 557,075 57,656 614,731 575,110 62,227 637,337 610,488 63,268 673,756
Net investment income (5,144,778) (532,475) (5,677,253) 16,063,705 1,738,084 17,801,789 14,246,702 1,476,456 15,723,158
Benefit payments, including refunds of member
contributions (4,949,110) (512,224) (5,461,334) (5,321,027) (575,732) (5,896,759) (5,672,563) (587,876) (6,260,439)
Other (net transfer)1,872,470 193,797 2,066,267 635,098 68,717 703,815 (182,338) (18,898) (201,236)
Net change in plan fiduciary net position (6,129,199) (634,361) (6,763,560) 13,177,009 1,425,745 14,602,754 10,527,833 1,091,050 11,618,883
Plan fiduciary net position - beginning 89,012,730 11,764,626 100,777,356 82,883,531 11,130,265 94,013,796 96,060,540 12,556,010 108,616,550
Plan fiduciary net position - ending (b)82,883,531$ 11,130,265$ 94,013,796$ 96,060,540$ 12,556,010$ 108,616,550$ 106,588,373$ 13,647,060$ 120,235,433$
Employer's net pension liability - ending (a) - (b)13,677,279$ 1,415,574$ 15,092,853$ 4,821,513$ 521,685$ 5,343,198$ (4,353,929)$ (451,219)$ (4,805,148)$
Plan fiduciary net position as a percentage of
the total pension liability 86.17%95.31%104.16%
Covered payroll 13,522,211$ 14,163,049$ 14,122,896
Employer's net pension liability as a percentage
of covered payroll 111.62%37.73%-34.02%
Notes to Schedule:
202120202019
The City implemented GASB Statement No. 68 in fiscal year 2016. Information prior to fiscal year 2016 is not available.
117
See notes to required supplementary information
89
City of Lake Forest
Illinois Municipal Retirement Fund
Schedule of Employer Contributions
Past Six Fiscal Years
City Library Total City Library Total City Library Total
Actuarially determined contribution 1,525,367$ 158,082 1,683,449$ 1,217,957$ 131,782$ 1,349,739$ 1,514,588$ 156,757$ 1,671,345$
Contributions in relation to the actuarially determined contribution (1,525,544) (158,100) (1,683,644) (1,224,123) (132,449) (1,356,572) (1,535,144) (158,885) (1,694,029)
Contribution deficiency (excess)(177)$ (18)$ (195)$ (6,166)$ (667)$ (6,833)$ (20,556)$ (2,128)$ (22,684)$
Covered payroll 15,519,529 14,612,252$ 14,446,880$
Contributions as a percentage of covered payroll 10.85%9.28%11.73%
City Library Total City Library Total City Library Total
Actuarially determined contribution 1,447,303$ 172,745$ 1,620,048$ 1,454,901$ 177,896$ 1,632,797$ 1,741,632$ 233,902$ 1,975,534$
Contributions in relation to the actuarially determined contribution (1,485,109) (177,258) (1,662,367) (1,494,964) (182,795) (1,677,759) (1,757,095) (235,978) (1,993,073)
Contribution deficiency (excess)(37,806)$ (4,513)$ (42,319)$ (40,063)$ (4,899)$ (44,962)$ (15,463)$ (2,076)$ (17,539)$
Covered payroll 13,247,776$ 13,135,941$ 13,391,112$
Contributions as a percentage of covered payroll 12.55%12.77%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
Salary increases
Investment rate of return 7.25%
Retirement Age
Mortality
Other information:
There were no benefit changes during the year.
2021
23 years
Level percentage of payroll, closed
2016
Actuarially determined contribution rates are calculated as of December 31 each year, which are 6 months prior to the
beginning of the fiscal year in which contributions are reported.
The City implemented GASB Statement No. 68 in fiscal year 2016. Information prior to fiscal year 2016 is not available.
2018 2017
20192020
RP-2014 Employee Mortality Table, adjusted to match current IMRF experience
5-Year Smoothed Market, 20% corridor
Experience-based table of rates that are specific to the type of eligibility condition
2.50%
3.35% to 14.25%, including inflation
Aggregate Entry age normal
118
See notes to required supplementary information
90
City of Lake Forest
Police Pension Fund
Schedule of Changes in the City's Net Pension Liability and Related Ratios
Last Seven Fiscal Years
2015 2016 2017 2018 2019 2020 2021
Total pension liability
Service cost 845,979$ 883,178$ 931,083$ 895,320$ 900,450$ 908,951$ 1,053,151$
Interest on total pension liability 3,219,893 3,657,765 3,660,514 3,908,626 4,051,210 4,435,870 4,511,442
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) 1,028,579
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) (3,029,156)
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 3,564,016
Total pension liability - beginning 47,103,353 52,530,895 52,622,210 56,248,128 58,400,246 66,252,095 69,868,229
Total pension liability - ending (a)52,530,895$ 52,622,210$ 56,248,128$ 58,400,246$ 66,252,095$ 69,868,229$ 73,432,245$
Plan fiduciary net position
Employer contributions 1,706,203$ 1,806,270$ 1,895,500$ 2,094,124$ 2,504,581$ 2,589,534$ 3,581,389$
Employee contributions 360,156 373,216 371,695 379,500 392,258 404,985 427,305
Net investment income 1,669,508 (475,655) 2,635,379 2,064,885 1,716,441 158,635 8,702,747
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) (3,029,156)
Administrative expenses (4,150) (4,835) (27,816) (34,158) (60,847) (52,357) (45,069)
Net change in plan fiduciary net position 1,538,012 (621,592) 2,354,285 1,892,487 1,699,891 211,890 9,637,216
Plan fiduciary net position - beginning 26,487,743 28,025,755 27,404,163 29,758,448 31,650,935 33,350,826 33,562,716
Plan fiduciary net position - ending (b)28,025,755$ 27,404,163$ 29,758,448$ 31,650,935$ 33,350,826$ 33,562,716$ 43,199,932$
City's net pension liability - ending (a) - (b)24,505,140$ 25,218,047$ 26,489,680$ 26,749,311$ 32,901,269$ 36,305,513$ 30,232,313$
Plan fiduciary net position as a percentage of the total
pension liability 53.35%52.08%52.91%54.20%50.34%48.04%58.83%
Covered payroll 3,590,934$ 3,759,611$ 3,750,706$ 3,800,841$ 3,940,419$ 4,059,797$ 4,077,656$
City's net pension liability as a percentage of covered
payroll 682.42%670.76%706.26%703.77%834.97%894.27%741.41%
Notes to Schedule:
The Pension implemented GASB Statement No. 67 in fiscal year 2015. Information prior to fiscal year 2015 is not available.
Changes of assumptions.
There were no assumption or method changes since the prior valuation.
119
See notes to required supplementary information
91
City of Lake Forest
Police Pension Fund
Schedule of Employer Contributions
Last Ten Fiscal Years
2012 2013 2014 2015
Actuarially determined contribution 1,372,431$ 1,375,906$ 1,384,307$ 1,508,450$
Contributions in relation to the actuarially
determined contribution 1,515,074 1,502,075 1,563,964 1,706,203
Contribution deficiency (excess)(142,643)$ (126,169)$ (179,657)$ (197,753)$
Covered payroll 3,359,679$ 3,170,518$ 3,518,797$ 3,590,934$
Contributions as a percentage of covered
payroll 45.10%47.38%44.45%47.51%
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
Investment gains and losses are smoothed over a 5-
year period
PubS-2010 Employee mortality, projected 5 years past the valuation date
with Scale MP-2018.
5.21%
50-70
2.50%
6.50%, 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.
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 y ( ); y (
5/1/2016 valuation); 22 years (as of 5/1/2019 valuation);
21 years (as of 5/1/2020 valuation); 21 years (as of
5/1/2021 valuation)
120
See notes to required supplementary information
92
2016 2017 2018 2019 2020 2021
1,810,315$ 1,737,445$ 1,832,059$ 2,505,888$ 2,594,845$ 3,090,726$
1,806,270 1,895,500 2,094,124 2,504,581 2,589,534 3,581,389
4,045$ (158,055)$ (262,065)$ 1,307$ 5,311$ (490,663)$
3,759,611$ 3,750,706$ 3,800,841$ 3,940,419$ 4,059,797$ 4,077,656$
48.04%50.54%55.10%63.56%63.78%87.83%
121
See notes to required supplementary information
93
City of Lake Forest
Police Pension Fund
Schedule of Investment Returns
Last Seven Fiscal Years
2015 2016 2017 2018 2019 2020 2021
Annual money-weighted rate of return,
net of investment expense 6.79%-1.44%9.67%7.03%5.48%0.59%25.29%
Notes to Schedule:
The Pension implemented GASB Statement No. 67 in fiscal year 2015. Information prior to fiscal year 2015 is not
available.
122
See notes to required supplementary information
94
City of Lake Forest
Firefighters' Pension Fund
Schedule of Changes in the City's Net Pension Liability and Related Ratios
Last Seven Fiscal Years
2015 2016 2017 2018 2019 2020 2021
Total pension liability
Service cost 912,154$ 926,420$ 860,148$ 854,245$ 891,741$ 876,151$ 1,017,451$
Interest on total pension liability 2,754,242 3,072,945 3,190,325 3,425,477 3,564,977 3,779,365 3,912,242
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 1,089,198
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) (2,899,533)
Net change in total pension liability 3,707,071 1,881,844 3,470,829 2,036,326 5,143,554 4,149,790 3,119,358
Total pension liability - beginning 40,231,243 43,938,314 45,820,158 49,290,987 51,327,313 56,470,867 60,620,657
Total pension liability - ending (a)43,938,314$ 45,820,158$ 49,290,987$ 51,327,313$ 56,470,867$ 60,620,657$ 63,740,015$
Plan fiduciary net position
Employer contributions 1,168,287$ 1,216,585$ 1,211,587$ 1,308,348$ 1,719,445$ 1,822,064$ 2,567,216$
Employee contributions 296,676 297,946 290,383 296,202 311,675 330,725 349,655
Net investment income 1,871,817 60,335 3,053,497 2,897,100 3,032,134 988,063 10,796,842
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) (2,899,533)
Administrative expenses (4,150) (4,835) (34,006) (35,547) (52,598) (44,220) (38,657)
Net change in plan fiduciary net position 1,562,781 (360,916) 2,312,990 2,046,421 2,429,035 383,768 10,775,523
Plan fiduciary net position - beginning 30,695,209 32,257,990 31,897,074 34,210,064 36,256,485 38,685,520 39,069,288
Plan fiduciary net position - ending (b)32,257,990$ 31,897,074$ 34,210,064$ 36,256,485$ 38,685,520$ 39,069,288$ 49,844,811$
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$ 13,895,204$
Plan fiduciary net position as a percentage of the total
pension liability 73.42%69.61%69.40%70.64%68.51%64.45%78.20%
Covered payroll 3,111,216$ 2,924,893$ 3,071,211$ 3,237,410$ 3,338,448$ 3,440,901$ 3,527,518$
City's net pension liability as a percentage of covered
payroll 375.43%476.02%491.04%465.52%532.74%626.33%393.91%
Notes to Schedule:
The Pension implemented GASB Statement No. 67 in fiscal year 2015. Information prior to fiscal year 2015 is not available.
There were no assumption or method changes since the prior valuation.
Changes of assumptions.
123
See notes to required supplementary information
95
City of Lake Forest
Firefighters' Pension Fund
Schedule of Employer Contributions
Last Ten Fiscal Years
2012 2013 2014 2015
Actuarially determined contribution 862,452$ 894,551$ 894,384$ 950,325$
Contributions in relation to the actuarially
determined contribution 983,298 1,026,345 1,090,695 1,168,287
Contribution deficiency (excess)(120,846)$ (131,794)$ (196,311)$ (217,962)$
Covered payroll 2,941,767$ 3,049,732$ 3,004,889$ 3,111,216$
Contributions as a percentage of covered
payroll 33.43%33.65%36.30%37.55%
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
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);20 years (as of 5/1/2021 valuation)
PubS-2010 Employee mortality, projected 5 years past the valuation date
with Scale MP-2018.
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
5.90%
6.50%, 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.
124
See notes to required supplementary information
96
2016 2017 2018 2019 2020 2021
1,217,702$ 1,137,826$ 1,298,188$ 1,721,953$ 1,826,568$ 2,075,171$
1,216,585 1,211,587 1,308,348 1,719,445 1,822,064 2,567,216
1,117$ (73,761)$ (10,160)$ 2,508$ 4,504$ (492,045)$
2,924,893$ 3,071,211$ 3,237,410$ 3,388,448$ 3,440,901$ 3,527,518$
41.59%39.45%40.41%50.74%52.95%72.78%
125
See notes to required supplementary information
97
City of Lake Forest
Firefighters' Pension Fund
Schedule of Investment Returns
Last Seven Fiscal Years
2015 2016 2017 2018 2019 2020 2021
Annual money-weighted rate of return,
net of investment expense 6.48%0.26%9.66%8.65%8.56%2.63%28.13%
Notes to Schedule:
The Pension implemented GASB Statement No. 67 in fiscal year 2015. Information prior to
fiscal year 2015 is not available.
126
See notes to required supplementary information
98
City of Lake Forest
Other Postemployment Benefits Plan
Schedule of Changes in the City's Total OPEB Liability and Related Ratios
Last Three Fiscal Years
City Library City Library City Library
Total OPEB liability
Service cost 46,323$ 1,620$ 49,721$ 1,718$ 64,125$ 2,014$
Interest 93,093 8,019 89,145 7,379 68,569 4,829
Differences between expected and actual experience - - - - (473,423) (19,803)
Changes of assumptions 32,177 1,221 365,319 6,686 6,339 (3,818)
Benefit payments, including refunds of member contributions (157,993) (16,545) (171,388) (19,768) (183,715) (23,925)
Net change in total OPEB liability 13,600 (5,685) 332,797 (3,985) (518,105) (40,703)
Total OPEB liability - beginning 2,423,911 210,250 2,437,511 204,565 2,770,308 200,580
Total OPEB liability - ending (a)2,437,511$ 204,565$ 2,770,308$ 200,580$ 2,252,203$ 159,877$
Plan fiduciary net position as a percentage of the total
OPEB liability 0.00%0.00%0.00%0.00%0.00%0.00%
Covered payroll 20,233,763$ 1,467,746$ 20,794,094$ 1,382,150$ 22,059,672$ 1,458,298$
City's total OPEB liability as a percentage of covered payroll 12.05%13.94%13.32%14.51%10.21%10.96%
Notes to Schedule:
The District implemented GASB Statement No. 75 in fiscal year 2019. Information prior to fiscal year 2019 is not available.
2019 2020 2021
127
City of Lake Forest
Notes to Required Supplementary Information
Year Ended April 30, 2021
Budgetary Information
Budgets for the General and major special revenue funds are adopted on a basis of accounting consistent with
accounting principles generally accepted in the United States of America (GAAP).
99 128
SUPPLEMENTARY INFORMAT ION
129
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.
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.
130
City of Lake Forest
Combining Balance Sheet
Nonmajor Governmental Funds
April 30, 2021
Special Revenue Funds
Police
Restricted
Foreign Fire
Insurance Tax
Emergency
Telephone
Parks and
Public Land Motor Fuel Tax
Assets
Cash and cash equivalents $117,877 $350,664 $(107,870)$1,488,087 $1,885,669
Receivables:
Property taxes -----
Other 390 -865,386 --
Due from other governments ---138,314 63,827
Advances to other funds -----
Prepaid items --28,878 --
Total assets $118,267 $350,664 $786,394 $1,626,401 $1,949,496
Liabilities, Deferred Inflows of
Resources and Fund Balances
Liabilities
Accounts payable $-$-$1,597 $-$605,224
Accrued liabilities -----
Deposits -----
Unearned revenues ---138,314 -
Due to other funds -----
Total liabilities --1,597 138,314 605,224
Deferred Inflows of Resources
Property taxes levied for a future
period -----
Total deferred inflows of
resources -----
Fund Balances
Nonspendable for prepaid items --28,878 --
Restricted for culture and
recreation ---1,488,087 -
Restricted for highways and
streets ----1,344,272
Restricted for public safety 118,267 350,664 755,919 --
Restricted for affordable housing -----
Restricted for debt service
purposes -----
Unassigned -----
Total fund balances 118,267 350,664 784,797 1,488,087 1,344,272
Total liabilities, deferred
inflows of resources
and fund balances $118,267 $350,664 $786,394 $1,626,401 $1,949,496
100 131
Special Revenue Funds
Debt Service
Funds
Capital
Projects Fund
Senior
Resources
Commission Housing Trust Debt Service
Laurel/Western
Redevelopment
TIF
Total Nonmajor
Governmental
Funds
$153,978 $1,670,997 $1,758,652 $-$7,318,054
--2,069,737 -2,069,737
19,956 ---885,732
--142,083 -344,224
---380,000 380,000
----28,878
$173,934 $1,670,997 $3,970,472 $380,000 $11,026,625
$16,070 $5,930 $-$59,400 $688,221
4,508 ---4,508
-18,000 --18,000
----138,314
---624,815 624,815
20,578 23,930 -684,215 1,473,858
--2,069,737 -2,069,737
--2,069,737 -2,069,737
----28,878
153,356 ---1,641,443
----1,344,272
----1,224,850
-1,647,067 --1,647,067
--1,900,735 -1,900,735
---(304,215)(304,215)
153,356 1,647,067 1,900,735 (304,215)7,483,030
$173,934 $1,670,997 $3,970,472 $380,000 $11,026,625
101 132
City of Lake Forest
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances
Nonmajor Governmental Funds
Year Ended April 30, 2021
Special Revenue Funds
Police
Restricted
Foreign Fire
Insurance
Tax
Emergency
Telephone
Parks and
Public Land
Motor Fuel
Tax
Revenues
Taxes:
Property $-$-$-$-$-
Other -----
Intergovernmental 1,294 ---1,332,148
Charges for services 27,184 159,441 435,032 151,024 -
Grants and contributions ---112,135 -
Investment income 437 52 3,011 3,761 6,694
Miscellaneous revenues -----
Total revenues 28,915 159,493 438,043 266,920 1,338,842
Expenditures
Current:
General government -----
Culture and recreation ---618,854 -
Public safety 450 71,833 214,481 --
Capital Outlay --64,993 -1,751,120
Debt service:
Principal retirement -----
Interest and fiscal charges -----
Total expenditures 450 71,833 279,474 618,854 1,751,120
Excess (deficiency) of
revenues over
expenditures 28,465 87,660 158,569 (351,934)(412,278)
Other Financing Sources
(Uses)
Transfers in ---750,000 -
Transfers out -----
Total other financing
sources (uses)---750,000 -
Net change in fund
balances 28,465 87,660 158,569 398,066 (412,278)
Fund Balances (Deficit),
Beginning 89,802 263,004 626,228 1,090,021 1,756,550
Fund Balances (Deficit),
Ending $118,267 $350,664 $784,797 $1,488,087 $1,344,272
102 133
Special Revenue Funds
Debt Service
Funds
Capital
Projects
Fund
Senior
Resources
Commission
Housing
Trust Debt Service
Laurel/Western
Redevelopment
TIF
Total
Nonmajor
Governmental
Funds
$-$-$2,065,938 $857,998 $2,923,936
-24,000 540,744 -564,744
----1,333,442
54,802 ---827,483
165,004 ---277,139
759 4,827 8,973 -28,514
1,146 ---1,146
221,711 28,827 2,615,655 857,998 5,956,404
-341,278 2,039 62,421 405,738
468,114 ---1,086,968
----286,764
----1,816,113
--1,910,089 -1,910,089
--1,026,472 -1,026,472
468,114 341,278 2,938,600 62,421 6,532,144
(246,403)(312,451)(322,945)795,577 (575,740)
253,513 750,000 356,688 -2,110,201
---(356,688)(356,688)
253,513 750,000 356,688 (356,688)1,753,513
7,110 437,549 33,743 438,889 1,177,773
146,246 1,209,518 1,866,992 (743,104)6,305,257
$153,356 $1,647,067 $1,900,735 $(304,215)$7,483,030
103 134
City of Lake Forest
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual - Police Restricted Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Revenues
Intergovernmental $8,500 $8,500 $1,294 $(7,206)
Charges for services 34,400 34,400 27,184 (7,216)
Investment income 2,000 2,000 437 (1,563)
Total revenues 44,900 44,900 28,915 (15,985)
Expenditures
Public safety 88,000 88,000 450 87,550
Contingency 8,800 8,800 -8,800
Total expenditures 96,800 96,800 450 96,350
Net change in fund balance $(51,900)$(51,900)28,465 $80,365
Fund Balance, Beginning 89,802
Fund Balance, Ending $118,267
104 135
City of Lake Forest
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual - Foreign Fire Insurance Tax Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Revenues
Charges for services $100,000 $100,000 $159,441 $59,441
Investment income --52 52
Total revenues 100,000 100,000 159,493 59,493
Expenditures
Public safety 100,000 100,000 71,833 28,167
Total expenditures 100,000 100,000 71,833 28,167
Net change in fund balance $-$-87,660 $87,660
Fund Balance, Beginning 263,004
Fund Balance, Ending $350,664
105 136
City of Lake Forest
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual - Emergency Telephone Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Revenues
Charges for services $420,000 $420,000 $435,032 $15,032
Investment income 5,000 5,000 3,011 (1,989)
Total revenues 425,000 425,000 438,043 13,043
Expenditures
Public safety 220,944 220,944 214,481 6,463
Capital outlay 54,712 54,712 64,993 (10,281)
Contingency 27,566 27,566 -27,566
Total expenditures 303,222 303,222 279,474 23,748
Net change in fund balance $121,778 $121,778 158,569 $36,791
Fund Balance, Beginning 626,228
Fund Balance, Ending $784,797
106 137
City of Lake Forest
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual - Parks and Public Land Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Revenues
Charges for services $79,604 $79,604 $151,024 $71,420
Grants and contributions 50,000 302,135 112,135 (190,000)
Investment income 8,000 8,000 3,761 (4,239)
Total revenues 137,604 389,739 266,920 (122,819)
Expenditures
Culture and recreation 380,000 1,258,226 618,854 639,372
Capital outlay 50,000 50,000 -50,000
Contingency 130,823 130,823 -130,823
Total expenditures 560,823 1,439,049 618,854 820,195
Excess (deficiency) of revenues
over (under) expenditures (423,219)(1,049,310)(351,934)697,376
Other Financing Sources (Uses)
Transfers in --750,000 750,000
Total other financing sources
(uses)--750,000 750,000
Net change in fund balance $(423,219)$(1,049,310)398,066 $1,447,376
Fund Balance, Beginning 1,090,021
Fund Balance, Ending $1,488,087
107 138
City of Lake Forest
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual - Motor Fuel Tax Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Revenues
Intergovernmental $689,149 $689,149 $1,332,148 $642,999
Grants and contributions -1,344 -(1,344)
Investment income 22,000 22,000 6,694 (15,306)
Total revenues 711,149 712,493 1,338,842 626,349
Expenditures
Capital outlay 1,750,000 1,750,000 1,751,120 (1,120)
Contingency 175,000 175,000 -175,000
Total expenditures 1,925,000 1,925,000 1,751,120 173,880
Net change in fund balance $(1,213,851)$(1,212,507)(412,278)$800,229
Fund Balance, Beginning 1,756,550
Fund Balance, Ending $1,344,272
108 139
City of Lake Forest
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual - Senior Resources Commission Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Revenues
Charges for services $162,345 $162,345 $54,802 $(107,543)
Grants and contributions 170,976 170,976 165,004 (5,972)
Investment income 2,500 2,500 759 (1,741)
Miscellaneous revenues --1,146 1,146
Total revenues 335,821 335,821 221,711 (114,110)
Expenditures
Culture and recreation 605,708 605,708 468,114 137,594
Contingency 60,571 60,571 -60,571
Total expenditures 666,279 666,279 468,114 198,165
Excess (deficiency) of revenues
over (under) expenditures (330,458)(330,458)(246,403)84,055
Other Financing Sources
Transfers in 274,222 274,222 253,513 (20,709)
Total other financing sources 274,222 274,222 253,513 (20,709)
Net change in fund balance $(56,236)$(56,236)7,110 $63,346
Fund Balance, Beginning 146,246
Fund Balance, Ending $153,356
109 140
City of Lake Forest
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual - Housing Trust Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Revenues
Other taxes $36,000 $36,000 $24,000 $(12,000)
Investment income 25,000 25,000 4,827 (20,173)
Total revenues 61,000 61,000 28,827 (32,173)
Expenditures
General government 565,000 565,000 341,278 223,722
Contingency 56,500 56,500 -56,500
Total expenditures 621,500 621,500 341,278 280,222
Excess (deficiency) of revenues
over (under) expenditures (560,500)(560,500)(312,451)248,049
Other Financing Sources (Uses)
Transfers in --750,000 750,000
Total other financing sources
(uses)--750,000 750,000
Net change in fund balance $(560,500)$(560,500)437,549 $998,049
Fund Balance, Beginning 1,209,518
Fund Balance, Ending $1,647,067
110 141
City of Lake Forest
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual - Debt Service Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Revenues
Taxes:
Property $2,058,441 $2,058,441 $2,065,938 $7,497
Other taxes 520,000 520,000 540,744 20,744
Investment income 38,350 38,350 8,973 (29,377)
Total revenues 2,616,791 2,616,791 2,615,655 (1,136)
Expenditures
Current:
General government 3,750 3,750 2,039 1,711
Debt service:
Principal retirement 1,910,090 1,910,090 1,910,089 1
Interest and fiscal charges 1,026,470 1,026,470 1,026,472 (2)
Total expenditures 2,940,310 2,940,310 2,938,600 1,710
Excess (deficiency) of revenues
over (under) expenditures (323,519)(323,519)(322,945)574
Other Financing Sources (Uses)
Transfers in 356,688 356,688 356,688 -
Total other financing sources
(uses)356,688 356,688 356,688 -
Net change in fund balance $33,169 $33,169 33,743 $574
Fund Balance, Beginning 1,866,992
Fund Balance, Ending $1,900,735
111 142
City of Lake Forest
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual - Laurel/W estern Redevelopment TIF Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Revenues
Property taxes $311,415 $311,415 $857,998 $546,583
Total revenues 311,415 311,415 857,998 546,583
Expenditures
General government 138,766 338,766 62,421 276,345
Capital Outlay 100,000 100,000 -100,000
Contingency 59,545 59,545 -59,545
Total expenditures 298,311 498,311 62,421 435,890
Excess (deficiency) of revenues
over (under) expenditures 13,104 (186,896)795,577 982,473
Other Financing Sources (Uses)
Transfers out (356,688)(356,688)(356,688)-
Total other financing sources
(uses)(356,688)(356,688)(356,688)-
Net change in fund balance $(343,584)$(543,584)438,889 $982,473
Fund Balance (Deficit), Beginning (743,104)
Fund Balance (Deficit), Ending $(304,215)
112 143
City of Lake Forest
Schedule of Revenues, Expenditures and Changes
in Fund Balance - Budget and Actual - Capital Improvements Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Revenues
Taxes
Property $1,547,764 $1,547,764 $1,540,186 $(7,578)
Other taxes 1,456,000 1,456,000 3,300,150 1,844,150
Charges for services 76,210 76,210 108,896 32,686
Grants and contributions -733,577 597,073 (136,504)
Investment income 60,000 60,000 48,333 (11,667)
Miscellaneous 5,000 5,000 43,015 38,015
Total revenues 3,144,974 3,878,551 5,637,653 1,759,102
Expenditures
Current:
General government 1,564,100 2,168,281 1,614,995 553,286
Highways and streets 590,000 626,622 588,833 37,789
Sanitation 67,000 75,125 25,126 49,999
Culture and recreation 80,000 95,000 104,090 (9,090)
Capital outlay 1,962,000 2,718,676 2,327,808 390,868
Contingency 568,370 568,370 -568,370
Total expenditures 4,831,470 6,252,074 4,660,852 1,591,222
Excess (deficiency) of revenues
over (under) expenditures (1,686,496)(2,373,523)976,801 3,350,324
Other Financing Sources (Uses)
Transfers in 300,000 300,000 3,892,640 3,592,640
Proceeds from capital asset sales 20,000 20,000 5,520 (14,480)
Total other financing sources
(uses)320,000 320,000 3,898,160 3,578,160
Net change in fund balance $(1,366,496)$(2,053,523)4,874,961 $6,928,484
Fund Balance, Beginning 11,315,878
Fund Balance, Ending $16,190,839
113 144
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.
145
City of Lake Forest
Schedule of Revenues, Expenses and Nonoperating Revenues (Expenses) - Budget and Actual (Budgetary
Basis) -
Waterworks and Sewerage Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Operating Revenues
Charges for services $8,291,084 $8,291,084 $8,669,225 $378,141
Connection fees 74,500 74,500 182,688 108,188
Miscellaneous 8,427 8,427 5,845 (2,582)
Total operating revenues 8,374,011 8,374,011 8,857,758 483,747
Operating Expenses
General and administrative 2,528,903 2,528,903 2,210,663 318,240
Operations and maintenance 3,341,496 3,585,562 2,996,457 589,105
Contingency 980,980 980,980 -980,980
Total operating expenses 6,851,379 7,095,445 5,207,120 1,888,325
Nonoperating Revenues (Expenses)
Investment income 140,000 140,000 39,495 (100,505)
Gain on disposal of capital assets --1,221 1,221
Other --1,475 1,475
Principal retirement (1,844,332)(1,844,332)(1,844,332)-
Interest expense (598,005)(598,005)(411,948)186,057
Paying agent fees (3,000)(3,000)(1,176)1,824
Total nonoperating revenues
(expenses)(2,305,337)(2,305,337)(2,215,265)90,072
114 146
City of Lake Forest
Schedule of Revenues, Expenses and Nonoperating Revenues (Expenses) - Budget and Actual (Budgetary
Basis) -
Deerpath Golf Course Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Operating Revenues
Charges for services $1,466,657 $1,466,657 $1,864,338 $397,681
Miscellaneous 5,033 5,033 -(5,033)
Total operating revenues 1,471,690 1,471,690 1,864,338 392,648
Operating Expenses
General and administrative 704,780 704,780 677,589 27,191
Operations and maintenance 1,064,970 1,285,041 1,053,520 231,521
Contingency 210,067 210,067 -210,067
Total operating expenses 1,979,817 2,199,888 1,731,109 468,779
Nonoperating Revenues (Expenses)
Investment income --2,790 2,790
Principal retirement (100,000)(100,000)(90,081)9,919
Interest expense (10,518)(10,518)(8,528)1,990
Paying agent fees (329)(329)(10)319
Total nonoperating revenues
(expenses)(110,847)(110,847)(95,829)15,018
115 147
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.
148
City of Lake Forest
Combining Statement of Net Position
Internal Service Funds
April 30, 2021
Fleet Self Insurance
Liability
Insurance Total
Assets
Current assets:
Cash and cash equivalents $734,097 $5,881,058 $2,014,102 $8,629,257
Receivables:
Other -28,010 4,432,939 4,460,949
Inventories 415,879 --415,879
Prepaid items --624,277 624,277
Total current assets 1,149,976 5,909,068 7,071,318 14,130,362
Noncurrent assets:
Net pension asset 181,912 --181,912
Capital assets (net of accumulated depreciation):
Property and equipment 48,047 --48,047
Accumulated depreciation (48,047)--(48,047)
Total noncurrent assets 181,912 --181,912
Total assets 1,331,888 5,909,068 7,071,318 14,312,274
Deferred Outflows of Resources
Deferred outflows related to pensions 52,500 --52,500
Deferred outflows related to total OPEB liability 9,020 --9,020
Total deferred outflows of resources 61,520 --61,520
Liabilities
Current liabilities:
Accounts payable 12,100 867,720 107,417 987,237
Accrued liabilities 10,854 776,381 110,307 897,542
Total current liabilities 22,954 1,644,101 217,724 1,884,779
Noncurrent liabilities:
Compensated absences 38,338 --38,338
Total OPEB liability 61,783 --61,783
Total noncurrent liabilities 100,121 --100,121
Total liabilities 123,075 1,644,101 217,724 1,984,900
Deferred Inflows of Resources
Deferred inflows related to pensions 411,603 --411,603
Deferred inflows related to total OPEB liability 11,842 --11,842
Total deferred inflows of resources 423,445 --423,445
Net Position
Restricted for:
Employee retirement 181,912 --181,912
Unrestricted 664,976 4,264,967 6,853,594 11,783,537
Total net position $846,888 $4,264,967 $6,853,594 $11,965,449
116 149
City of Lake Forest
Combining Statement of Revenues, Expenses and
Changes in Fund Net Position
Internal Service Funds
Year Ended April 30, 2021
Fleet
Self
Insurance
Liability
Insurance Totals
Operating Revenues
Charges for services $1,868,085 $5,737,171 $2,512,445 $10,117,701
Total operating revenues 1,868,085 5,737,171 2,512,445 10,117,701
Operating Expenses
General and administrative 1,836,097 5,204,101 1,207,499 8,247,697
Total operating expenses 1,836,097 5,204,101 1,207,499 8,247,697
Operating income 31,988 533,070 1,304,946 1,870,004
Nonoperating Revenues
Investment income 3,524 19,962 9,134 32,620
Total nonoperating revenues 3,524 19,962 9,134 32,620
Income before transfers 35,512 553,032 1,314,080 1,902,624
Transfers
Transfers in 500 --500
Total transfers 500 --500
Change in net position 36,012 553,032 1,314,080 1,903,124
Net Position, Beginning 810,876 3,711,935 5,539,514 10,062,325
Net Position, Ending $846,888 $4,264,967 $6,853,594 $11,965,449
117 150
City of Lake Forest
Combining Statement of Cash Flows
Internal Service Funds
Year Ended April 30, 2021
Fleet
Self
Insurance
Liability
Insurance Total
Cash Flows From Operating Activities
Received from customers $1,868,085 $5,733,557 $1,327,356 $8,928,998
Paid to suppliers for goods and services (1,294,725)(4,779,272)(1,231,938)(7,305,935)
Paid to employees for services (663,606)--(663,606)
Net cash flows from operating activities (90,246)954,285 95,418 959,457
Cash Flows From Investing Activities
Investment income 3,524 19,962 9,134 32,620
Net cash flows from investing activities 3,524 19,962 9,134 32,620
Cash Flows From Noncapital Financing
Activities
Transfers from (to) other funds 500 --500
Net cash flows from noncapital
financing activities 500 --500
Net change in cash and cash
equivalents (86,222)974,247 104,552 992,577
Cash and Cash Equivalents, Beginning 820,319 4,906,811 1,909,550 7,636,680
Cash and Cash Equivalents, Ending $734,097 $5,881,058 $2,014,102 $8,629,257
Reconcilation of Operating Income to Net
Cash Flows From Operating Activities
Operating income $31,988 $533,070 $1,304,946 $1,870,004
Changes in assets and liabilities:
Accounts receivable 1,128 (3,614)(1,185,089)(1,187,575)
Inventories (31,416)--(31,416)
Prepaid items --(39,424)(39,424)
Net pension asset (181,912)--(181,912)
Deferred outflows related to pensions 61,012 --61,012
Accounts payable 3,691 217,732 40,277 261,700
Accrued liabilities (17,368)207,097 (25,292)164,437
Net pension liability (194,028)--(194,028)
Deferred inflows related to pensions 228,737 --228,737
Deferred revenue (1,128)--(1,128)
Compensated absences 7,262 --7,262
Deferred outflows related to total OPEB
liability 327 --327
Deferred inflows related to total OPEB
liability 11,842 --11,842
Total OPEB liability (10,381)--(10,381)
Net cash flows from operating activities $(90,246)$954,285 $95,418 $959,457
Reconciliation of Cash and Cash
Equivalents to the Statement of Net
Position
Cash and cash equivalents $734,097 $5,881,058 $2,014,102 $8,629,257
118 151
City of Lake Forest
Schedule of Revenues, Expenses and Nonoperating Revenues - Budget and Actual (Budgetary Basis)
Fleet Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Operating Revenues
Charges for services $1,869,437 $1,869,437 $1,868,085 $(1,352)
Total operating revenues 1,869,437 1,869,437 1,868,085 (1,352)
Operating Expenses
General and administrative 1,991,365 2,044,094 1,836,097 207,997
Contingency 204,409 204,409 -204,409
Total operating expenses 2,195,774 2,248,503 1,836,097 412,406
Nonoperating Revenues
Investment income 11,000 11,000 3,524 (7,476)
Total nonoperating revenues 11,000 11,000 3,524 (7,476)
119 152
City of Lake Forest
Schedule of Revenues, Expenses and Nonoperating Revenues - Budget and Actual (Budgetary Basis)
Self Insurance Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Operating Revenues
Charges for services $5,508,000 $5,508,000 $5,737,171 $229,171
Total operating revenues 5,508,000 5,508,000 5,737,171 229,171
Operating Expenses
General and administrative 5,585,000 5,585,000 5,204,101 380,899
Contingency 588,500 588,500 -588,500
Total operating expenses 6,173,500 6,173,500 5,204,101 969,399
Nonoperating Revenues
Investment income 68,000 68,000 19,962 (48,038)
Total nonoperating revenues 68,000 68,000 19,962 (48,038)
120 153
City of Lake Forest
Schedule of Revenues, Expenses and Nonoperating Revenues - Budget and Actual (Budgetary Basis)
Liability Insurance Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Operating Revenues
Charges for services $1,327,348 $1,327,348 $2,512,445 $1,185,097
Total operating revenues 1,327,348 1,327,348 2,512,445 1,185,097
Operating Expenses
General and administrative 1,252,787 1,252,787 1,207,499 45,288
Contingency 125,279 125,279 -125,279
Total operating expenses 1,378,066 1,378,066 1,207,499 170,567
Nonoperating Revenues
Investment income 31,000 31,000 9,134 (21,866)
Total nonoperating revenues 31,000 31,000 9,134 (21,866)
121 154
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.
.
155
City of Lake Forest
Combining Statement of Fiduciary Net Position
Pension Trust Funds
April 30, 2021
Police
Pension
Firefighters'
Pension Total
Assets
Cash $148,721 $24,259 $172,980
Money markets 213,021 3,849,832 4,062,853
Investments:
U.S. Treasury obligations 8,151,306 3,165,181 11,316,487
U.S. Government agencies 208,595 3,191,600 3,400,195
Municipal/corporate bonds 4,196,108 6,929,304 11,125,412
Mutual funds 26,252,509 32,607,420 58,859,929
Real estate investment fund 3,929,533 -3,929,533
Receivables 55,396 94,389 149,785
Prepaid items 11,203 4,129 15,332
Due from primary government 46,581 26,381 72,962
Total assets 43,212,973 49,892,495 93,105,468
Liabilities
Accounts payable 13,041 47,684 60,725
Total liabilities 13,041 47,684 60,725
Net Position
Restricted for pension benefits $43,199,932 $49,844,811 $93,044,743
122 156
City of Lake Forest
Combining Statement of Changes in Fiduciary Net Position
Pension Trust Funds
Year Ended April 30, 2021
Police
Pension
Firefighters'
Pension Total
Additions
Contributions:
Employer $3,581,389 $2,567,216 $6,148,605
Employee 427,305 349,655 776,960
Total contributions 4,008,694 2,916,871 6,925,565
Investment income:
Interest 562,525 747,996 1,310,521
Net appreciation in fair value of investments 8,227,219 10,113,506 18,340,725
Total investment income 8,789,744 10,861,502 19,651,246
Less Investment expense (87,734)(64,760)(152,494)
Net investment income 8,702,010 10,796,742 19,498,752
Miscellaneous 737 100 837
Total additions 12,711,441 13,713,713 26,425,154
Deductions
Pension benefits and refunds 3,029,156 2,899,533 5,928,689
Other administrative expenses 45,069 38,657 83,726
Total deductions 3,074,225 2,938,190 6,012,415
Change in net position 9,637,216 10,775,523 20,412,739
Net Position, Beginning 33,562,716 39,069,288 72,632,004
Net Position, Ending $43,199,932 $49,844,811 $93,044,743
123 157
City of Lake Forest
Schedule of Changes in Fiduciary Net Position - Budget and Actual
Police Pension Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Additions
Contributions:
Employer $3,090,726 $3,090,726 $3,581,389 $490,663
Employee 420,000 420,000 427,305 7,305
Total contributions 3,510,726 3,510,726 4,008,694 497,968
Investment income:
Interest 800,000 800,000 562,525 (237,475)
Net appreciation in fair value of
investments 1,630,000 1,630,000 8,227,219 6,597,219
Total investment income 2,430,000 2,430,000 8,789,744 6,359,744
Less Investment expense (150,000)(150,000)(87,734)62,266
Net investment income 2,280,000 2,280,000 8,702,010 6,422,010
Miscellaneous --737 737
Total additions 5,790,726 5,790,726 12,711,441 6,920,715
Deductions
Pension benefits and refunds 3,140,626 3,140,626 3,029,156 111,470
Other administrative expenses 70,180 70,180 45,069 25,111
Contingency 336,081 336,081 -336,081
Total deductions 3,546,887 3,546,887 3,074,225 472,662
Change in net position $2,243,839 $2,243,839 9,637,216 $7,393,377
Net Position, Beginning 33,562,716
Net Position, Ending $43,199,932
124 158
City of Lake Forest
Schedule of Changes in Fiduciary Net Position - Budget and Actual
Firefighters' Pension Fund
Year Ended April 30, 2021
Budgeted Amounts
Original Final Actual
Variance with
Final Budget
Additions
Contributions:
Employer $2,075,171 $2,075,171 $2,567,216 $492,045
Employee 315,650 315,650 349,655 34,005
Total contributions 2,390,821 2,390,821 2,916,871 526,050
Investment income:
Interest 900,000 900,000 747,996 (152,004)
Net appreciation in fair value of
investments 1,867,500 1,867,500 10,113,506 8,246,006
Total investment income 2,767,500 2,767,500 10,861,502 8,094,002
Less Investment expense (80,000)(80,000)(64,760)15,240
Net investment income 2,687,500 2,687,500 10,796,742 8,109,242
Miscellaneous --100 100
Total additions 5,078,321 5,078,321 13,713,713 8,635,392
Deductions
Pension benefits and refunds 3,038,410 3,038,410 2,899,533 138,877
Other administrative expenses 65,180 65,180 38,657 26,523
Contingency 318,359 318,359 -318,359
Total deductions 3,421,949 3,421,949 2,938,190 483,759
Change in net position $1,656,372 $1,656,372 10,775,523 $9,119,151
Net Position, Beginning 39,069,288
Net Position, Ending $49,844,811
125 159
Discretely Presented Component Unit
Lake Forest Library –General Fund –This fund accounts for the operation and maintenance of the
Lake Forest Library. Financing is provided by a specific annual property tax levy, charges for services,
fines and forfeits, interest earned on investments and other miscellaneous revenues.
160
126
City of Lake Forest
Discretely Presented Component Unit - Lake Forest Library
Statement of Net Position and General Fund Balance Sheet
General Statement of
Fund Adjustments Net Position
Assets and Deferred Outflows of Resources
Assets
Cash and cash equivalents 6,269,624$ -$ 6,269,624$
uncollectibles)
4,329,806 - 4,329,806
13,581 - 13,581
Net pension asset - 451,219 451,219
Capital assets not depreciated - 238,500 238,500
Capital assets depreciated, net of
accumulated depreciation - 2,446,033 2,446,033
10,613,011 3,135,752 13,748,763
Deferred outflows of Resources
Deferred outflows related to pensions - 134,645 134,645
Deferred outflows related to total OPEB liability - 6,127 6,127
- 140,772 140,772
10,613,011$ 3,276,524$ 13,889,535$
Liabilities, Deferred Inflows of Resources, and Fund
Balance/Net Position
Liabilities
77,795$ -$ 77,795$
54,991 - 54,991
Long-term obligations
Due within one year - 39,756 39,756
Due in more than one year - 277,108 277,108
132,786 316,864 449,650
Deferred Inflows of Resources
Property taxes levied for future periods 4,329,806 - 4,329,806
Deferred inflows related to pensions 1,020,954 1,020,954
Deferred inflows related to total OPEB liability - 19,963 19,963
4,329,806 1,040,917 5,370,723
Fund Balance/Net Position
Unassigned 6,150,419 (6,150,419) -
Net position
Net investment in capital assets - 2,636,468 2,636,468
Restricted for employee retirement - 451,219 451,219
Unrestricted - 4,981,475 4,981,475
6,150,419 1,918,743 8,069,162
10,613,011$ 3,276,524$ 13,889,535$
Accounts payable
Accrued liabilities
April 30, 2021
Property taxes
Receivables (net of allowance for
Other taxes
Total assets
Capital assets
Total deferred outflows of resources
Total assets and deferred outflows of
resources
Total fund balance/net position
Total deferred inflows of resources
Total liabilities
Total liabilities, deferred inflows of
position
resources and fund balance/net
161
127
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
Year Ended April 30, 2021
Statement
General of
Fund Adjustments Activities
Revenues
4,260,835$ -$ 4,260,835$
48,298 - 48,298
38,536 - 38,536
185,550 - 185,550
Fines 1,715 - 1,715
28,467 - 28,467
4,563,401 - 4,563,401
Expenditures/expenses
Current 3,629,830 (121,546) 3,508,284
Capital Outlay 78,643 (78,643) -
Total expenditures/expenses 3,708,473 (200,189) 3,508,284
Net change in fund balance/net position 854,928 200,189 1,055,117
5,295,491 1,718,554 7,014,045
Fund Balance/Net Position, Ending 6,150,419$ 1,918,743$ 8,069,162$
Fund Balance/Net Position, Beginning
Property taxes
Charges for services
Total revenues
Intergovernmental
Grants and contributions
Investment Income
162
128
City of Lake Forest
Summary of Debt Service Requirements to Maturity
April 30, 2021
General
Fiscal Obligation
Year Bonds
2022 5,366,166$
2023 5,376,077
2024 4,986,036
2025 2,973,378
2026 2,980,328
2027 2,967,201
2028 2,981,652
2029 3,592,402
2030 3,613,536
2031 3,736,487
2032 3,684,162
2033 3,649,323
2034 2,402,563
2035 1,149,063
2036 1,150,250
2037 1,145,275
2038 786,600
52,540,499$
163
129
City of Lake Forest
Debt Service Requirements to Maturity - General Obligation Bonds
April 30, 2021
Year Principal Interest Principal Interest Principal Interest
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 - - - - - -
150,000$ 6,563$ 40,444$ 2,069$ 430,989$ 30,979$
Fiscal
Tax Bonds Tax Bonds Tax Bonds
Special Service Area 25 Special Service Area 26 Special Service Area 29
164
130
City of Lake Forest
Debt Service Requirements to Maturity - General Obligation Bonds
April 30, 2021
Year Principal Interest Principal Interest Principal Interest
2022 435,000$ 312,013$ 340,000$ 269,425$ -$ 271,153$
2023 440,000 298,962 355,000 260,925 - 271,153
2024 450,000 285,762 370,000 252,050 515,000 271,153
2025 460,000 272,262 385,000 242,800 525,000 260,853
2026 475,000 258,462 405,000 233,175 535,000 247,728
2027 480,000 241,837 410,000 223,050 550,000 234,352
2028 495,000 225,037 435,000 212,800 565,000 220,602
2029 930,000 206,475 650,000 200,837 580,000 206,477
2030 960,000 171,600 695,000 181,337 590,000 191,687
2031 1,085,000 133,200 740,000 160,488 610,000 173,987
2032 1,120,000 89,800 705,000 136,438 630,000 155,687
2033 1,125,000 45,000 720,000 113,525 645,000 136,787
2034 - - 1,530,000 90,125 665,000 117,438
2035 - - 330,000 36,575 685,000 97,488
2036 - - 340,000 25,025 710,000 75,225
2037 - - 350,000 13,125 730,000 52,150
2038 - - - - 760,000 26,600
8,455,000$ 2,540,410$ 8,760,000$ 2,651,700$ 9,295,000$ 3,010,520$
Fiscal
Series 2017Series 2013 Series 2015
Obligation Bonds Obligation Bonds Obligation Bonds
165
131
City of Lake Forest
Debt Service Requirements to Maturity - General Obligation Bonds
April 30, 2021
Fiscal
Year Principal Interest Principal Interest Total
2022 2,875,000$ 611,213$ 3,881,613$ 1,484,553$ 5,366,166$
2023 3,030,000 467,463 4,064,209 1,311,868 5,376,077
2024 2,370,000 315,963 3,855,611 1,130,425 4,986,036
2025 630,000 197,463 2,000,000 973,378 2,973,378
2026 660,000 165,963 2,075,000 905,328 2,980,328
2027 695,000 132,962 2,135,000 832,201 2,967,201
2028 730,000 98,213 2,225,000 756,652 2,981,652
2029 735,000 83,613 2,895,000 697,402 3,592,402
2030 755,000 68,912 3,000,000 613,536 3,613,536
2031 780,000 53,812 3,215,000 521,487 3,736,487
2032 810,000 37,237 3,265,000 419,162 3,684,162
2033 845,000 19,011 3,335,000 314,323 3,649,323
2034 - - 2,195,000 207,563 2,402,563
2035 - - 1,015,000 134,063 1,149,063
2036 - - 1,050,000 100,250 1,150,250
2037 - - 1,080,000 65,275 1,145,275
2038 - - 760,000 26,600 786,600
14,915,000$ 2,251,825$ 42,046,433$ 10,494,066$ 52,540,499$
Requirements
Series 2019
Obilgation Bonds
Total
166
132
City of Lake Forest
Special Service Area 25 Special Tax Bonds – 2003 Series
April 30, 2021
Date of issue:May 1, 2003
Date of maturity:December 15, 2022
Authorized issue:$1,050,000
Denomination of bonds:$5,000
Interest rate:1.95-2.95%
Interest dates:June 15 and December 15
Payable at:Lake Forest Bank and Trust
Lake Forest, Illinois
Redeemable Annually
on December 15 Amount
2021 75,000$
2022 75,000
150,000$
Bond Principal and Interest Requirements
Tax
Levy Tax Levy
Year Principal Interest Total June 15 Amount December 15 Amount
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
150,000$ $6,563$ $156,563$
Coupons Due on
167
133
City of Lake Forest
Special Service Area 26 Special Tax Bonds – 2003 Series
April 30, 2021
Date of issue:October 7, 2003
Date of maturity:December 15, 2022
Authorized issue:$276,500
Denomination of bonds:One bond per maturity
Interest rates:2.5-3.4%
Interest dates:June 15 and December 15
Payable at:Lake Forest Bank and Trust
Lake Forest, Illinois
Redeemable Annually
on December 15 Amount
2021 19,743$
2022 20,701
40,444$
Bond Principal and Interest Requirements
Tax
Levy Tax Levy
Year Principal Interest Total June 15 Amount December 15 Amount
2020 19,743$ 1,365$ 21,108$ 2021 683$ 2021 682$
2021 20,701 704 21,405 2022 352 2022 352
40,444$ 2,069$ 42,513$
Coupons Due on
168
134
City of Lake Forest
Special Service Area 29 Special Tax Bonds - 2004 Series
April 30, 2021
Date of issue:
Date of maturity:December 15, 2023
Authorized issue:$2,000,000
Denomination of bonds:One bond per maturity
Interest rates:2.55-3.65%
Interest dates:June 15 and December 15
Payable at:Lake Forest Bank and Trust
Lake Forest, Illinois
Redeemable Annually
on December 15 Amount
2021 136,870$
2022 143,508
2023 150,611
430,989$
Bond Principal and Interest Requirements
Tax
Levy Tax Levy
Year Principal Interest Total June 15 Amount December 15 Amount
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
430,989$ 30,979$ 461,968$
Coupons Due on
December 20, 2004
169
135
City of Lake Forest
General Obligation Bonds – 2013
April 30, 2021
Date of issue:
Date of maturity:December 15, 2032
Authorized issue:$9,715,000
Denomination of bonds:$5,000
Interest rates:2.00 - 4.00%
Interest dates:June 15 and December 15
Payable at:Wells Fargo Bank
Chicago, Illinois
Redeemable Annually
on December 15 Amount
2021 435,000$
2022 440,000
2023 450,000
2024 460,000
2025 475,000
Thereafter 6,195,000
8,455,000$
Bond Principal and Interest Requirements
Tax
Levy Tax Levy
Year Principal Interest Total June 15 Amount December 15 Amount
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 460,000 272,262 732,262 2024 136,131 2024 136,281
2024 475,000 258,462 733,462 2025 129,231 2025 129,231
Thereafter 6,195,000 1,112,949 7,307,949 Thereafter 556,475 Thereafter 556,474
8,455,000$ 2,540,410$ 10,995,410$
September 16, 2013
Coupons Due on
170
136
City of Lake Forest
General Obligation Bonds – 2015
April 30, 2021
Date of issue:
Date of maturity:December 15, 2036
Authorized issue:$9,780,000
Denomination of bonds:$5,000
Interest rates:2.50 - 3.75%
Interest dates:June 15 and December 15
Payable at:Wells Fargo Bank
Chicago, Illinois
Redeemable Annually
on December 15 Amount
2021 340,000$
2022 355,000
2023 370,000
2024 385,000
2025 405,000
Thereafter 6,905,000
8,760,000$
Bond Principal and Interest Requirements
Tax
Levy Tax Levy
Year Principal Interest Total June 15 Amount December 15 Amount
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
2024 405,000 233,175 638,175 2025 116,588 2025 116,587
Thereafter 6,905,000 1,393,325 8,298,325 Thereafter 696,663 Thereafter 696,662
8,760,000$ 2,651,700$ 11,411,700$
August 3, 2015
Coupons Due on
171
137
City of Lake Forest
General Obligation Bonds – 2017
April 30, 2021
Date of issue:
Date of maturity:December 15, 2037
Authorized issue:$9,295,000
Denomination of bonds:$5,000
Interest rates:2.00 - 3.50%
Interest dates:June 15 and December 15
Payable at:Bank of New York Mellon
Chicago, Illinois
Redeemable Annually
on December 15 Amount
2021 -$
2022 -
2023 515,000
2024 525,000
2025 535,000
Thereafter 7,720,000
9,295,000$
Bond Principal and Interest Requirements
Tax
levy Tax levy
year Principal Interest Total June 15 Amount December 15 Amount
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
2024 535,000 247,728 782,728 2025 123,864 2025 123,864
Thereafter 7,720,000 1,688,480 9,408,480 Thereafter 844,240 Thereafter 844,240
9,295,000$ 3,010,520$ 12,305,520$
June 5, 2017
Coupons due on
172
138
City of Lake Forest
General Obligation Bonds – 2019
April 30, 2021
Date of issue:
Date of maturity:December 15, 2032
Authorized issue:$17,655,000
Denomination of bonds:$5,000
Interest rates:2.25 - 5.00%
Interest dates:June 15 and December 15
Payable at:Amalgamated Bank
Chicago, Illinois
Redeemable Annually
on December 15 Amount
2021 2,875,000$
2022 3,030,000
2023 2,370,000
2024 630,000
2025 660,000
Thereafter 5,350,000
14,915,000$
Bond Principal and Interest Requirements
Tax
Levy Tax Levy
Year Principal Interest Total June 15 Amount December 15 Amount
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
2024 660,000 165,963 825,963 2025 82,982 2025 82,981
Thereafter 5,350,000 493,763 5,843,763 Thereafter 246,882 Thereafter 246,881
14,915,000$ 2,251,825$ 17,166,825$
December 19, 2019
Coupons Due on
173
139
City of Lake Forest
Debt Service Fund
Combining Balance Sheet
April 30, 2021
Special Service Special Service Special Service 2004 Series B
Area 25 Area 26 Area 29 2011B/2019
General General General General
Obligation Obligation Obligation Obligation
Bonds Bonds Bonds Bonds
Assets
Cash and cash equivalents 18,197$ 6,050$ 9,126$ 1,596,328$
uncollectibles):
Property taxes 78,652 21,284 150,117 -
- - - 142,083
Total assets 96,849$ 27,334$ 159,243$ 1,738,411$
Deferred inflows of resources
Property taxes levied for future periods 78,652$ 21,284$ 150,117$ -$
Fund Balance
Fund balance- restricted for
debt service 18,197 6,050 9,126 1,738,411
Total deferred inflows of resources,
liabilities and fund balances 96,849$ 27,334$ 159,243$ 1,738,411$
Receivables (net of allowance for
Due from other governments
174
140
2009/2019 2010/2019 2013 2015
General General General General
Obligation Obligation Obligation Obligation
Bonds Bonds Bonds Bonds Total
34,952$ 54,712$ 34,752$ 4,535$ 1,758,652$
251,401 578,274 743,172 246,837 2,069,737
- - - - 142,083
286,353$ 632,986$ 777,924$ 251,372$ 3,970,472$
251,401$ 578,274$ 743,172$ 246,837$ 2,069,737$
34,952 54,712 34,752 4,535 1,900,735
286,353$ 632,986$ 777,924$ 251,372$ 3,970,472$
175
141
City of Lake Forest
Debt Service Fund
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances
Year Ended April 30, 2021
Special Service Special Service Special Service 2004 Series B
Area 25 Area 26 Area 29 2011B/2019
General General General General
Obligation Obligation Obligation Obligation
Bonds Bonds Bonds Bonds
Revenues
Taxes:
Property taxes 76,781$ 21,327$ 150,455$ -$
Other - - - 540,744
Investment income 192 47 203 6,248
Total revenues 76,973 21,374 150,658 546,992
Expenditures
General government - - - 50
Debt Service:
Principal 70,000 18,839 130,663 430,587
Interest 6,275 1,999 19,280 92,338
Total expenditures 76,275 20,838 149,943 522,975
Excess (deficiency) of revenues
over expenditures 698 536 715 24,017
Other financing sources:
Transfers in - - - -
Total other financing sources (use - - - -
Net change in fund balances 698 536 715 24,017
Fund Balances, Beginning 17,499 5,514 8,411 1,714,394
Fund Balances, Ending 18,197$ 6,050$ 9,126$ 1,738,411$
176
142
2009/2019 2010/2019 2013 2015
General General General General
Obligation Obligation Obligation Obligation
Bonds Bonds Bonds Bonds Total
255,070$ 579,705$ 756,515$ 226,085$ 2,065,938$
- - - - 540,744
426 802 861 194 8,973
255,496 580,507 757,376 226,279 2,615,655
52 187 750 1,000 2,039
175,000 350,000 430,000 305,000 1,910,089
80,545 226,222 322,763 277,050 1,026,472
255,597 576,409 753,513 583,050 2,938,600
(101) 4,098 3,863 (356,771) (322,945)
- - - 356,688 356,688
- - - 356,688 356,688
(101) 4,098 3,863 (83) 33,743
35,053 50,614 30,889 4,618 1,866,992
34,952$ 54,712$ 34,752$ 4,535$ 1,900,735$
177
Statistical Section
Contents Page
Financial Trends 143
Revenue Capacity 148
Debt Capacity 156
Demographic and Economic Information 161
Operating Information 164
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.
178
143
City of Lake Forest
Net Position by Component
Last Ten Fiscal Years
April 30, 2021
2012 2013 2014 2015 2016*2017 2018 2019 2020 2021
Governmental Activities
Net investment in capital assets 190,779,593$ 187,500,531$ 184,270,349$ 181,056,601$ 181,481,470$ 170,568,584$ 166,607,491$ 164,675,251$ 165,179,598$ 164,798,332$
Restricted 16,499,487 16,064,099 16,860,362 15,737,797 18,506,073 15,476,976 20,193,505 26,714,972 27,807,934 36,509,516
Unrestricted 19,550,532 21,126,818 23,689,130 26,747,317 (18,479,928) (9,068,405) (11,006,718) (14,809,677) (18,261,240) (14,713,066)
226,829,612$ 224,691,448$ 224,819,841$ 223,541,715$ 181,507,615$ 176,977,155$ 175,794,278$ 176,580,546$ 174,726,292$ 186,594,782$
Business-Type Activities
Net investment in capital assets 36,753,670$ 36,077,752$ 36,163,443$ 36,617,378$ 37,582,505$ 37,504,482$ 40,729,712$ 39,610,155$ 39,052,272$ 38,142,896$
Restricted - - - - - - - - - 580,012
Unrestricted 8,918,142 9,880,856 9,739,336 8,941,920 8,323,401 7,696,321 8,950,670 9,508,483 9,692,010 10,288,805
45,671,812$ 45,958,608$ 45,902,779$ 45,559,298$ 45,905,906$ 45,200,803$ 49,680,382$ 49,118,638$ 48,744,282$ 49,011,713$
Total Primary Government
Net investment in capital assets 227,533,263$ 223,578,283$ 220,433,792$ 217,673,979$ 219,063,975$ 208,073,066$ 207,337,203$ 204,285,406$ 204,231,870$ 202,941,228$
Restricted 16,499,487 16,064,099 16,860,362 15,737,797 18,506,073 15,476,976 20,193,505 26,714,972 27,807,934 37,089,528
Unrestricted 28,468,674 31,007,674 33,428,466 35,689,237 (10,156,527) (1,372,084) (2,056,048) (5,301,194) (8,569,230) (4,424,261)
272,501,424$ 270,650,056$ 270,722,620$ 269,101,013$ 227,413,521$ 222,177,958$ 225,474,660$ 225,699,184$ 223,470,574$ 235,606,495$
*Beginning in 2016, the City implemented GASB 68 which resulted in the inclusion
of a net pension liability.
Total governmental activities
net position
Total business-type activities
Total primary government
net position
179
144
Change in Net Position
Last Ten Fiscal years
Year Ended April 30, 2021
2012 2013 2014 2015*2016 2017 2018 2019 2020 2021
Expenses
Governmental Activities
General government 12,080,189$ 16,176,326$ 12,311,198$ 12,604,331$ 11,675,363$ 16,882,976$ 9,884,646$ 13,773,790$ 13,865,425$ 12,863,134$
Highway and streets 8,304,860 7,536,444 7,762,403 8,839,231 9,230,548 10,923,639 9,621,569 9,081,471 8,677,958 7,457,325
Sanitation 2,568,820 2,512,559 2,586,125 2,474,355 2,208,326 2,611,231 2,585,940 2,580,043 2,678,876 2,438,916
Culture and recreation 9,469,832 10,352,252 10,397,593 10,172,391 8,463,259 10,023,195 10,003,119 8,859,391 8,977,855 9,453,397
Public safety 13,583,116 13,748,855 14,430,151 15,303,399 16,360,830 17,048,209 17,017,092 19,769,395 23,338,259 16,854,590
Interest 1,420,087 1,362,715 1,333,267 1,357,552 1,293,742 1,559,100 1,271,181 1,231,944 1,115,802 920,485
47,426,904 51,689,151 48,820,737 50,751,259 49,232,068 59,048,350 50,383,547 55,296,034 58,654,175 49,987,847
Business-Type Activities
Waterworks and sewerage 7,985,394 8,287,297 7,476,752 8,353,825 7,239,042 8,510,811 8,122,998 7,832,615 8,168,879 8,486,272
Golf 1,371,380 1,459,394 1,554,678 1,642,121 1,868,252 2,095,510 1,604,261 1,875,677 1,861,393 2,042,874
9,356,774 9,746,691 9,031,430 9,995,946 9,107,294 10,606,321 9,727,259 9,708,292 10,030,272 10,529,146
56,783,678$ 61,435,842$ 57,852,167$ 60,747,205$ 58,339,362$ 69,654,671$ 60,110,806$ 65,004,326$ 68,684,447$ 60,516,993$
Program Revenues
Governmental Activities
Charges for services:
General government 4,771,863$ 4,838,151$ 4,756,948$ 5,442,475$ 8,191,440$ 8,860,169$ 5,203,210$ 5,007,655$ 4,077,609$ 3,754,897$
Highway and streets 846,366 753,487 741,334 710,795 990,840 782,953 1,006,644 2,730,122 2,183,456 2,476,794
Sanitation 81,577 58,564 77,147 682,062 697,435 734,111 721,276 749,620 1,040,121 1,053,692
Culture and recreation 3,392,303 3,342,913 3,314,856 3,156,699 3,257,796 2,810,762 3,491,365 3,117,795 2,594,119 1,733,927
Public safety 1,678,032 1,861,619 1,950,998 1,795,521 1,552,567 1,689,547 1,992,985 2,117,186 2,525,439 2,517,398
Operating grants and contributions 1,433,791 1,777,734 1,105,191 1,345,670 1,368,451 1,088,579 1,298,006 985,676 1,529,863 1,097,399
Capital grants and contributions 360,407 25,000 757,239 468,255 280,675 1,174,000 356,178 505,988 448,694 777,054
12,564,339 12,657,468 12,703,713 13,601,477 16,339,204 17,140,121 14,069,664 15,214,042 14,399,301 13,411,161
Business-Type Activities
Charges for services:
Waterworks and sewerage 7,477,637 8,598,079 7,521,323 8,034,469 7,477,558 7,873,741 8,083,554 7,818,777 7,512,450 8,569,806
Golf 1,238,016 1,320,455 1,397,836 1,414,217 1,759,271 1,606,661 1,480,618 1,524,654 1,459,127 1,864,338
Operating grants and contributions - - - - - - - 228,332 - -
Capital grants and contributions - - - - - - - - - -
8,715,653 9,918,534 8,919,159 9,448,686 9,236,829 9,480,402 9,564,172 9,571,763 8,971,577 10,434,144
21,279,992$ 22,576,002$ 21,622,872$ 23,050,163$ 25,576,033$ 26,620,523$ 23,633,836$ 24,785,805$ 23,370,878$ 23,845,305$
Net (Expense)/Revenue
Governmental Activities (34,862,565)$ (39,031,683)$ (36,117,024)$ (37,149,782)$ (32,892,864)$ (41,908,229)$ (36,313,883)$ (40,081,992)$ (44,254,874)$ (36,576,686)$
Business-Type Activities (641,121) 171,843 (112,271) (547,260) 129,535 (1,125,919) (163,087) (136,529) (1,058,695) (95,002)
(35,503,686)$ (38,859,840)$ (36,229,295)$ (37,697,042)$ (32,763,329)$ (43,034,148)$ (36,476,970)$ (40,218,521)$ (45,313,569)$ (36,671,688)$
City of Lake Forest
Total primary government net expense
Total government program revenues
Total business-type activities program revenues
Total governmental activities program revenues
Total primary government expenses
Total business-type activities
Total governmental activities expenses
180
145
Change in Net Position
Last Ten Fiscal years
Year Ended April 30, 2021
2012 2013 2014 2015*2016 2017 2018 2019 2020 2021
City of Lake Forest
General Revenues and Other Changes in Net Position
Governmental Activities
Taxes:
Property 25,428,378$ 25,051,411$ 23,744,650$ 24,468,769$ 25,006,224$ 25,928,864$ 26,193,444$ 27,591,773$ 28,569,827$ 30,459,112$
Sales 2,577,304 3,183,479 3,047,529 2,851,103 2,889,306 2,829,607 2,105,736 2,095,938 2,597,218 1,081,489
Income and use 1,938,686 2,131,711 2,182,325 2,386,567 2,251,828 2,306,546 2,272,639 2,593,506 2,584,198 3,223,407
Telecommunications and utility 3,981,548 3,736,586 4,026,972 3,954,001 3,551,491 3,596,175 3,440,365 3,603,381 3,170,895 3,102,515
Real estate transfer tax 1,215,407 1,209,113 1,633,580 1,224,610 1,288,175 1,398,160 1,622,900 1,471,595 1,256,265 2,735,405
Other 492,746 493,418 581,443 534,625 514,231 636,368 2,178,246 2,410,453 2,717,862 4,308,631
Investment earnings 264,432 491,196 637,193 547,118 145,329 1,042,049 1,665,391 2,215,202 1,664,355 3,564,117
Miscellaneous 33,724 573,705 669,145 73,613 - - - - - -
Gain on sale of assets - - - - - - (3,874) 7,775 38,500 -
Transfers (37,746) (77,100) (97,000) (168,750) (924,496) (360,000) (4,343,841) 786,850 (198,500) (29,500)
35,894,479 36,793,519 36,425,837 35,871,656 34,722,088 37,377,769 35,131,006 42,776,473 42,400,620 48,445,176
Business-Type Activities
Investment earnings 51,376 37,853 38,550 33,408 40,362 58,366 236,990 279,189 175,969 42,285
Other - - - 1,621 6,033 2,450 61,835 299,176 309,870 290,648
Transfers 37,746 77,100 97,000 168,750 924,496 360,000 4,343,841 (786,850) 198,500 29,500
89,122 114,953 135,550 203,779 970,891 420,816 4,642,666 (208,485) 684,339 362,433
35,983,601$ 36,908,472$ 36,561,387$ 36,075,435$ 35,692,979$ 37,798,585$ 39,773,672$ 42,567,988$ 43,084,959$ 48,807,609$
Changes in Net Position
Governmental activities 1,031,914$ (2,238,164)$ 308,813$ (1,278,126)$ 1,829,224$ (4,530,460)$ (1,182,877)$ 2,694,481$ (1,854,254)$ 11,868,490$
Business-type activities (551,999) 286,796 23,279 (343,481) 1,100,426 (705,103) 4,479,579 (345,014) (374,356) 267,431
479,915$ (1,951,368)$ 332,092$ (1,621,607)$ 2,929,650$ (5,235,563)$ 3,296,702$ 2,349,467$ (2,228,610)$ 12,135,921$
*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.
Total primary government change in net position
Total business-type activities
Total primary government
Total governmental activities
181
146
City of Lake Forest
Fund Balances of Governmental Funds
Last Ten Fiscal Years
April 30, 2021
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund
Nonspendable 2,159,403$ 2,775,449$ 2,126,990$ 1,648,832$ 1,272,224$ 778,160$ 150,038$ 129,280$ 143,703$ 208,661$
Restricted 957,420 957,420 957,420 957,420 - - - - - -
Unassigned 10,601,190 11,020,723 14,530,550 17,910,037 22,509,969 28,799,288 29,130,844 28,815,904 29,433,682 28,148,267
13,718,013$ 14,753,592$ 17,614,960$ 20,516,289$ 23,782,193$ 29,577,448$ 29,280,882$ 28,945,184$ 29,577,385$ 28,356,928$
All Other Governmental Funds
Nonspendable 43,333$ 43,333$ -$ 381,173$ 408,539$ 536,121$ 28,688$ 32,837$ 29,139$ 28,878$
Restricted 16,171,794 15,605,203 16,127,257 14,726,999 20,337,111 19,420,288 20,806,879 26,656,696 27,693,271 36,738,128
Assigned 1,591,600 1,598,819 1,449,284 1,448,736 1,456,053 - - - - -
Unassigned - - - (1,022,136) - - - (3,686) (743,104) (304,215)
17,806,727$ 17,247,355$ 17,576,541$ 15,534,772$ 22,201,703$ 19,956,409$ 20,835,567$ 26,685,847$ 26,979,306$ 36,462,791$
31,524,740$ 32,000,947$ 35,191,501$ 36,051,061$ 45,983,896$ 49,533,857$ 50,116,449$ 55,631,031$ 56,556,691$ 64,819,719$
Total general fund
governmental
funds
Total governmental funds
182
147
City of Lake Forest
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
Year Ended April 30, 2021
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Revenues
Property taxes 25,428,378$ 25,051,411$ 23,744,650$ 24,468,769$ 25,006,224$ 25,928,864$ 26,193,444$ 27,591,773$ 28,569,827$ 30,459,112$
Other taxes 10,205,691 10,754,307 11,471,849 4,641,466 4,317,316 4,609,057 4,786,506 4,775,587 4,702,203 6,236,640
Intergovenmental revenues 589,960 612,357 576,125 6,972,923 6,680,193 6,656,768 6,331,183 6,717,794 7,274,602 7,982,783
Grants and contributions 1,039,737 1,190,377 962,249 950,823 1,056,523 1,419,736 997,289 2,220,550 1,082,083 1,959,289
Charges for services 7,028,800 7,319,673 7,373,500 7,935,973 8,506,756 8,005,317 8,833,079 8,759,327 8,749,224 7,611,794
Licenses and permits 2,475,739 2,450,194 2,477,338 2,821,066 5,222,568 5,157,398 3,232,276 3,456,703 2,954,115 3,133,137
Fines and forfeitures 372,607 368,941 297,005 287,333 260,407 321,168 345,438 355,304 271,985 260,726
Investment income 225,225 462,579 610,601 524,150 115,462 989,515 1,553,167 2,043,136 1,534,251 3,531,497
Miscellaneous revenue 730,813 1,225,082 759,384 790,344 779,137 841,731 1,831,152 1,511,534 1,360,723 1,346,521
48,096,950 49,434,921 48,272,701 49,392,847 51,944,586 53,929,554 54,103,534 57,431,708 56,499,013 62,521,499
Expenditures
General government 10,313,031 14,242,768 10,112,393 10,248,830 10,811,408 11,581,286 10,469,740 11,657,265 11,960,755 13,142,471
Highways and streets 2,139,656 2,044,225 2,293,840 2,371,461 2,157,463 3,118,461 2,354,587 4,577,657 3,393,599 3,232,159
Sanitation 2,228,844 2,193,091 2,212,166 2,235,135 2,276,433 2,311,435 2,290,986 2,480,420 2,619,476 2,653,638
Culture and recreation 8,463,547 9,282,695 8,686,298 8,457,043 8,338,284 8,532,289 8,853,547 9,319,869 9,398,508 9,260,377
Public safety 13,723,801 13,826,732 14,299,583 14,469,408 15,090,712 15,126,874 15,520,779 16,900,348 18,456,208 18,449,813
Capital outlay 6,641,923 4,586,574 5,527,772 7,582,668 10,992,926 5,439,469 8,746,881 3,971,995 6,753,993 4,568,295
Debt service:
Principal 2,531,876 1,377,736 1,400,950 1,623,436 1,791,579 7,906,696 1,782,156 1,429,625 1,730,850 1,910,089
Interest 1,667,372 1,392,342 1,319,276 1,400,609 1,293,634 1,639,191 1,277,596 1,242,498 1,202,730 1,026,472
47,710,050 48,946,163 45,852,278 48,388,590 52,752,439 55,655,701 51,296,272 51,579,677 55,516,119 54,243,314
Excess (deficiency) of revenues
over expenditures 386,900 488,758 2,420,423 1,004,257 (807,853) (1,726,147) 2,807,262 5,852,031 982,894 8,278,185
Other Financing Sources (Uses)
Transfers in 2,296,270 2,829,243 3,224,306 2,020,085 2,846,321 7,776,661 4,799,274 7,280,685 4,627,667 6,804,841
Transfers out (2,334,016) (2,906,343) (3,321,306) (2,188,835) (2,895,321) (8,136,661) (7,050,020) (7,644,685) (4,826,167) (6,834,841)
Bonds issued - - - - 9,780,000 - - - - -
Loan proceeds - - - - 830,080 - - - - -
Premium (discount) on bonds issued 120,828 - 26,093 - 106,384 - - - 797,619 -
Proceeds from refunding G.O. bonds 5,690,000 - 9,715,000 - - - - - 10,751,022 -
Payments for refunding G.O. bonds (5,769,025) - (9,665,000) - - - - - (11,445,875) -
Sale of capital assets 34,055 64,549 791,038 24,053 73,224 5,636,108 26,076 26,551 38,500 14,843
38,112 (12,551) 770,131 (144,697) 10,740,688 5,276,108 (2,224,670) (337,449) (57,234) (15,157)
425,012$ 476,207$ 3,190,554$ 859,560$ 9,932,835$ 3,549,961$ 582,592$ 5,514,582$ 925,660$ 8,263,028$
Debt service as a percentage of
8.31%5.85%6.17%6.43%6.54%17.36%6.49%5.42%5.78%5.76%
Total revenues
Total expenditures
Total other financing sources
(uses)
Net changes in fund balances
noncapital expenditures
183
148
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
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%
2020 2,168,305,007 221,826,768 55,722 6,474,628 22,935,969 2,419,598,094 1.4638 7,258,794,282 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
184
149
City of Lake Forest
Property Tax Rates - Direct and Overlapping Governments
Based on Shields Township
Last Ten Levy Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Bonds 0.068 0.071 0.088 0.090 0.067 0.059 0.060 0.066 0.074 0.077
Corporate 0.483 0.544 0.580 0.590 0.619 0.603 0.600 0.620 0.646 0.663
Firemen's Pension 0.041 0.046 0.052 0.054 0.053 0.050 0.061 0.065 0.077 0.093
IMRF 0.032 0.035 0.037 0.038 0.037 0.035 0.035 0.035 0.037 0.039
Library 0.126 0.141 0.152 0.155 0.153 0.146 0.145 0.149 0.157 0.166
Library Sites & Building 0.015 0.016 0.017 0.017 0.017 0.016 0.016 0.016 0.017 0.018
Parks/Park Maintenance 0.114 0.123 0.191 0.194 0.196 0.187 0.184 0.188 0.197 0.139
Playground & Recreation **0.050 0.055 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.086
Police Pension 0.060 0.066 0.076 0.080 0.082 0.078 0.083 0.087 0.109 0.125
Recreation for Handicapped Rec.0.014 0.016 0.018 0.018 0.018 0.018 0.018 0.019 0.020 0.021
Social Security 0.032 0.035 0.037 0.038 0.037 0.035 0.035 0.035 0.037 0.039
City Direct Rates *1.035 1.148 1.248 1.274 1.279 1.227 1.237 1.280 1.371 1.464
Overlapping Rates
College of Lake County 0.240 0.272 0.296 0.306 0.299 0.285 0.281 0.282 0.282 0.290
County of Lake 0.554 0.608 0.663 0.682 0.663 0.632 0.622 0.612 0.597 0.598
Lake County Forest Preserve 0.201 0.212 0.218 0.210 0.208 0.193 0.187 0.182 0.180 0.182
North Shore Sanitary District 0.150 0.150 0.164 0.169 0.166 0.157 0.153 0.153 0.153 0.157
School District 67, Elem.1.186 1.322 1.424 1.452 1.429 1.367 1.355 1.391 1.472 1.551
School District 115, High School 1.191 1.322 1.420 1.450 1.409 1.329 1.314 1.336 1.375 1.445
Township 0.043 0.036 0.037 0.039 0.038 0.036 0.035 0.035 0.036 0.037
Township Road and Bridge 0.026 0.029 0.032 0.033 0.032 0.031 0.030 0.031 0.032 0.033
Total tax rate 4.626 5.099 5.502 5.615 5.523 5.257 5.214 5.302 5.498 5.757
City's share of total tax rate 22%23%23%23%23%23%24%24%25%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
185
150
City of Lake Forest
Principal Property Taxpayers
Current Year and Nine Years Ago
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 16,895,392$ 1 0.70%19,412,533$ 1 0.76%
Kelmscott Park Apartments LLC 15,808,396 2 0.65%
Abbot Laboratories 14,250,581 3 0.59%17,157,454 2 0.67%
Chicago Title Land Trust Company 12,763,427 4 0.53%
Lake Forest Place LLC 12,551,225 5 0.52%
Chicago Title Land Trust Co 12,107,300 6 0.50%
Chicago Bears Football Club, Inc 11,302,562 7 0.47%
CAI Investment Lake Forest Global 9,854,273 8 0.41%
Lake Forest Investments 7,658,402 9 0.32%
Lake Forest Landmark Co. LLC 6,690,664 10 0.28%7,306,026 7 0.28%
Lake Products, Inc 13,795,850 3 0.54%
CBIZ Property Tax Solutions 11,089,158 4 0.43%
Trustmark Insurance Co 7,823,058 5 0.30%
Lake Forest Hosptial 7,430,902 6 0.29%
Lake Forest Landmark II 6,221,470 8 0.24%
James Campbell Company, LLC 5,585,451 9 0.22%
Shawgate Lake Forest, LLC 5,525,876 10 0.22%
102,619,757$ 4.95%101,109,669$ 3.95%
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.
2021 Column is 2020 Assessed Valuation
2012 Column is 2011 Assessed Valuation
2021 2012
186
151
City of Lake Forest
Property Tax Levies and Collections
Last Ten Levy Years
Levy Percentage Subsequent Year Taxes Percentage
Year Tax Levied Amount of Levy Collections Received of Levy
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 33,955,313 33,779,271 99.48%151 33,779,422 99.48%
2020 35,081,741 N/A N/A N/A N/A N/A
Data Source
Lake County Treasurer and City
Note: Property is assessed at 33 1/3 % of actual value.
Collected within the
Fiscal Year after the Levy
Total Collections
Per Levy
187
152
City of Lake Forest
Tax Extensions for City Funds
Last Ten Levy Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
General 0.483 0.544 0.580 0.590 0.619 0.603 0.600 0.617 0.646 0.663
IMRF/Social Security 0.064 0.070 0.074 0.076 0.074 0.070 0.070 0.071 0.074 0.078
Firefighter Pension 0.041 0.046 0.052 0.054 0.053 0.050 0.061 0.065 0.077 0.093
Police Pension 0.060 0.066 0.076 0.080 0.082 0.078 0.083 0.087 0.109 0.125
Parks and Recreation 0.164 0.178 0.191 0.194 0.196 0.187 0.184 0.188 0.196 0.224
Special Recreation 0.014 0.016 0.018 0.018 0.018 0.018 0.018 0.019 0.020 0.021
General Obligation Bond 2008 0.034 0.036 0.037 0.037 0.026 0.000 - - - -
General Obligation Bond 2009 0.011 0.012 0.013 0.013 0.009 0.012 0.012 0.011 0.011 0.011
General Obligation Bond 2010 0.023 0.023 0.012 0.025 0.015 0.020 0.020 0.019 0.019 0.019
General Obligation Bond 2013 0.000 0.000 0.026 0.015 0.010 0.018 0.018 0.027 0.027 0.027
General Obligation Bond 2015 - - - - 0.008 0.009 0.010 0.009 0.009 0.009
Total tax rate 0.894 0.991 1.079 1.102 1.110 1.065 1.076 1.113 1.188 1.269
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.
188
153
City of Lake Forest
Sales Tax Base and Number of Principal Payers
Taxable Sales by Category - Home Rule Sales Tax
Last Ten Calendar Years
2012 2013 2014 2015 2016 2017 2018 2019 2020
General Merchandise 12,219$ 9,722$ 7,005$ 7,471$ 5,072$ 4,358$ 4,215$ 5,854$ 4,980$
Food 91,999 93,952 105,771 96,009 92,936 93,838 95,457 144,134 189,599
Drinking and Eating Places 155,188 165,386 180,023 163,447 173,473 182,278 177,620 261,770 216,636
Apparel 64,317 68,135 68,291 75,606 73,785 72,540 67,069 116,944 115,308
Furniture & H.H. & Radio 37,536 38,821 39,494 36,526 32,774 28,424 29,524 47,907 62,235
Lumber, Building, Hardware 6,867 9,862 - - 7,537 8,238 9,633 17,362 27,244
Automobile and Filling Stations 38,900 37,025 34,895 28,267 26,735 30,895 35,146 48,650 45,234
Drugs and Miscellaneous Retail 81,022 110,554 117,262 118,740 117,224 102,558 103,843 154,528 179,191
Agriculture and All Others 110,446 121,651 105,139 129,721 116,945 105,670 66,743 146,885 148,739
Manufacturers - - 7,095 (3,818) - - - - -
Censored categories - - - - - - - - -
Total 598,494$ 655,108$ 664,975$ 651,969$ 646,481$ 628,799$ 589,250$ 944,034$ 989,166$
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%1.00%1.00%
Data Source
Illinois Department of Revenue
Note: Blank categories have less than 4 taxpayers, therefore no data is shown to
protect the confidentiality of individual taxpayers.
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.
189
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City of Lake Forest
Sales Tax Base and Number of Principal Payers
Taxable Sales by Category - Municipal Sales Tax
Last Ten Calendar Years
2011 2012 2013 2014 2015 2016 2017 2018 2019*2020
General Merchandise 72,955$ 24,726$ 19,656$ 14,010$ 14,930$ 11,412$ 10,496$ 10,069$ 8,964$ 5,204$
Food 579,914 585,517 593,446 673,803 591,893 564,049 550,591 535,167 528,469 615,073
Drinking and Eating Places 286,472 317,291 338,382 364,221 329,303 350,024 372,173 362,713 349,961 224,312
Apparel 107,453 128,633 136,270 136,582 151,212 147,576 145,141 134,201 146,455 115,423
Furniture & H.H. & Radio 20,373 75,071 77,642 78,988 73,061 65,571 56,848 59,046 66,569 62,239
Lumber, Building, Hardware (13,037) 13,742 19,724 - - 15,076 16,479 19,267 21,891 27,245
Automobile and Filling Stations 138,744 146,865 241,339 178,178 133,684 139,764 141,260 131,243 575,290 134,743
Drugs and Miscellaneous Retail 371,420 400,096 433,159 430,482 414,407 431,966 399,115 381,239 393,920 391,545
Agriculture and All Others 254,225 274,807 285,401 255,189 295,974 271,061 246,697 166,637 222,162 170,645
Manufacturers (9,729) - - 14,415 (5,107) - - - - -
Censored categories - - - - - - - - - -
Total 1,808,790$ 1,966,748$ 2,145,019$ 2,145,868$ 1,999,357$ 1,996,499$ 1,938,800$ 1,799,582$ 2,313,681$ 1,746,430$
Total Number of Payers 663 647 637 637 673 687 687 604 578 510
City direct sales tax rate 1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%1.00%
Data Source
Illinois Department of Revenue
Note: Blank categories have less than 4 taxpayers, therefore no data is shown to
protect the confidentiality of individual taxpayers.
The categories, Lumber, Bldg. and Hardware and General Merchandise became a censored status in the 2nd quarter of 2008.
The category of Furniture & H.H. & Radio became a censored status in the 4th quarter of 2011
* A onetime estimated payment of $400,000 was received in November 2019
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155
City of Lake Forest
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
Fiscal Year City Direct Rate State Rate Metra Rate Special County Rate Total
2012 1.50%5.00%0.50%0.50%7.50%
2013 1.50%5.00%0.50%0.50%7.50%
2014 1.50%5.00%0.50%0.50%7.50%
2015 1.50%5.00%0.50%0.50%7.50%
2016 1.50%5.00%0.50%0.50%7.50%
2017 1.50%5.00%0.50%0.50%7.50%
2018 1.50%5.00%0.50%0.50%7.50%
2019 1.50%5.00%0.50%0.50%7.50%
2020 2.00%5.00%0.50%0.50%8.00%
2021 2.00%5.00%0.50%0.50%8.00%
Data Source
City records
The City of Lake Forest became a home rule community in November 2004.
The City increased the home rules sales tax by .5% July 1, 2019
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156
City of Lake Forest
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities Business-Type Activities Ratio of Total Perecentage Total
Fiscal General Installment General Total Outstanding Debt of Outstanding
Year Obligation Purchase Obligation Revenue Primary To Equalized Personal Debt Per
Ended Bonds Contracts Bonds Bonds Government Assessed Valuation*Income*Capita*
2012 38,580,882$ -$ 22,804,000$ -$ 61,384,882$ 2.39%4.11%3,168.25$
2013 37,203,146 - 21,060,000 - 58,263,146 2.45%3.90%3,007.13
2014 35,852,197 - 19,245,000 - 55,097,197 2.44%3.69%2,843.73
2015 34,258,902 - 17,602,838 - 51,861,740 2.30%3.47%2,676.73
2016 42,510,566 - 15,679,654 - 58,190,220 2.52%3.90%3,003.37
2017 34,775,542 - 13,737,111 - 48,512,653 1.99%3.25%2,503.88
2018 33,460,538 - 21,111,864 - 54,572,402 2.15%3.65%2,816.64
2019 32,016,478 - 19,090,324 - 51,106,802 2.02%3.42%2,637.77
2020 30,340,954 - 16,863,419 - 47,204,373 1.92%3.16%2,436.35
2021 28,339,248 - 14,756,030 - 43,095,278 1.80%2.89%2,224.27
Note: Details of the City's outstanding debt can be found in the notes to the financial statements.
* See the Schedule of Demographic and Economic Statistics for equalized assessed valuation of property, population data and personal income.
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157
City of Lake Forest
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Less Amounts Percentage of Estimated
Fiscal General Available In Debt Actual Taxable Per
Year Obligation Bonds Service Fund Total Value of Property*Capita
2012 61,384,882$ 1,786,492$ 59,068,663$ 0.77%3,048.71$
2013 58,263,146 1,908,750 55,855,871 0.78%2,882.88
2014 55,097,197 1,144,118 53,953,079 0.80%2,784.68
2015 51,861,740 1,316,900 50,544,840 0.75%2,608.77
2016 58,190,220 1,201,300 56,988,920 0.82%2,941.36
2017 48,512,653 1,067,027 47,073,830 0.64%2,429.62
2018 54,572,402 1,161,697 53,410,705 0.70%2,756.68
2019 51,106,802 1,292,816 49,813,986 0.66%2,571.04
2020 47,204,373 1,596,241 45,608,132 0.61%2,353.97
2021 43,095,278 1,640,674 41,454,604 0.57%2,139.59
Note: Details of the City's outstanding debt can be found in the notes to the financial statements.
* See the Schedule of Assessed Value and estimated Actual Value of Taxable Property
for property value data.
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158
City of Lake Forest
Direct and Overlapping Governmental Activities Debt
April 30, 2021
Percentage City of
Debt Applicable Lake Forest
Gross to the City of Share
Governmental unit Debt Lake Forest*of Debt
Lake County 147,785,000$ 9.94%14,689,829$
Lake County Community College #532 47,300,000 10.48%4,957,040
Lake County Forest Preserve District 200,815,000 9.94%19,961,011
School District #67 3,510,000 100.00%3,510,000
School District #103 6,785,000 0.01%679
High School District #115 20,505,000 79.50%16,301,475
Subtotal, overlapping debt 426,700,000 63,374,712
City of Lake Forest direct debt 28,339,248 100.00%28,339,248
Total direct and overlapping debt 455,039,248$ 91,713,960$
Source: Lake County Clerk
District Bond Principal Payments Report
* Determined by ratio of assessed valuation of property subject to taxation in the City of
Lake Forest to valuation of property subject to taxation in overlapping unit.. The Percentage of debt is calculated
by the percentage of the City's EAV in relation to the overlapping government's EAV. The gross debt is found on the
Lake County website.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City.
This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and
businesses of the City of Lake Forest. This process recognizes that, when considering the government's ability to issue and repay
long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does
not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
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159
City of Lake Forest
Legal Debt Margin Information
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Debt limit N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Total net debt applicable to limit N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Legal debt margin N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Total net debt applicable to the limit
as a percentage of debt limit N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Note: Legal debt margin from 1997-2004 was 8.625% of assessed value.
* City of Lake Forest achieved home rule status in November 2004. To date the General Assembly
has set no limits for home rule municipalities.
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160
City of Lake Forest
Last Ten Fiscal Years
Fiscal Gross Less: Operating Net Available Debt Service
Year Revenue Expenses Revenue Principal Interest Coverage
2012 8,767,029$ 6,358,960$ 2,408,069$ 1,651,000$ 661,906$ 1.04
2013 9,956,387 6,938,272 3,018,115 1,744,000 482,866 1.36
2014 9,043,227 5,406,022 3,637,205 1,815,000 433,125 1.62
2015 8,918,081 5,445,461 3,472,620 1,847,000 402,951 1.54
2016 10,190,948 5,826,164 4,364,784 1,877,000 373,266 1.94
2017 9,881,831 6,438,798 3,443,033 1,902,000 339,386 1.54
2018 10,022,069 5,644,942 4,377,127 1,952,000 544,461 1.75
2019 10,357,788 6,992,668 3,365,120 1,987,000 580,023 1.31
2020 9,655,908 6,253,668 3,402,240 2,067,000 530,673 1.31
2021 10,796,575 6,752,827 4,043,748 1,934,413 607,064 1.59
Note: Details of the City's outstanding debt can be found in the notes to the financial statements.
Water Charges and Other includes investment earnings but excludes sale of property and grants
Waterworks and Sewerage and Golf Course Bonds
Pledged Revenue Coverage
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161
City of Lake Forest
Demographic and Economic Information
Last Ten Fiscal Years
Fiscal Equalized Accessed Per Capita Personal Per Capita Unemployment
Year Population Valuation (EAV)EAV Income Personal Income Rate
2012 *19,375 (A)2,565,080,023$ 132,391$ 1,493,657,500$ 77,092$ 6.8%
2013 *19,375 (A)2,378,047,139 122,738 1,493,657,500 77,092 6.7%
2014 *19,375 (A)2,253,547,404 116,312 1,493,657,500 77,092 6.7%
2015 *19,375 (A)2,250,468,636 116,153 1,493,657,500 77,092 5.4%
2016 *19,375 (A)2,307,936,059 119,119 1,493,657,500 77,092 4.7%
2017 *19,375 (A)2,443,072,671 126,094 1,493,657,500 77,092 4.6%
2018 *19,375 (A)2,533,957,443 130,785 1,493,657,500 77,092 3.9%
2019 *19,375 (A)2,526,924,079 130,422 1,493,657,500 77,092 3.7%
2020 *19,375 (A)2,457,796,598 126,854 1,493,657,500 77,092 3.8%
2021 *19,375 (A)2,396,662,125 123,699 1,493,657,500 77,092 6.3%
(A) Actual
(E) Estimate by City of Lake Forest
Data Source
City records, Department of Labor and Office of the County Clerk.
* The State of Illinois revised the annual unemployment rates for small communities back to 2010 in 2014
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162
City of Lake Forest
Principal Employers
Current Year and Nine Years Ago
% of Total % of Total
Employer Employees Rank City Population Employees Rank City Population
Northwestern Medicine Lake Forest Hospital 1,456 1 7.51%1,600 1 8.26%
Abbott 826 2 4.26%
Hospira Inc.821 3 4.24%1,350 2 6.97%
Pfizer **
Trustmark Insurance Company 618 4 3.19%800 3 4.13%
Pactiv Corporation 437 5 2.26%470 5 2.43%
Lake Forest College excludes student employees 418 6 2.16%514 4 2.38%
Lake Forest H.S. District 115 teacher, support staff 362 7 1.87%351 7 1.81%
Lake Forest Elem. S.D. No. 67 346 8 1.79%357 6 1.84%
Packaging Corporation of America 298 9 1.54%
City of Lake Forest 210 10 1.08%227 9 1.17%
Coyote Logistics, LLC 275 8 1.42%
Brunswick Corporation Packaging Corp - 200 10 1.03%
11977 6240
Data Source
City staff contacted companies via mail.
** No response received
2021 2012
198
163
City of Lake Forest
Full-Time Equivalent Employees
Last Ten Fiscal Years
Full-Time-Equivalent Budgeted Employees as of April 30
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Government
Administration 25 25 25 25 25.0 25.4 23.5 23.8 23.75 24.75
Community Development 12.5 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0 13.0
Public Safety
Fire Protection
Firefighters 33 33 33 33 33 33 32 32 32 32
Administrative 2.5 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0
Police
Officers 40 40 40 40 40 40 40 40 40 40
Civilians 18 18.0 18.0 18.0 8.0 9.0 7.0 7.0 7.0 7.0
Public Works
Public Works Administration 4 4 4 4 4 4 4 4 4 4
Building Maintenance 6 6 7 7 7 7 7 7 7 7
Engineering 5 5 5 5 5 5 5 5 5 5
Streets 7 8 8 7.5 7.5 8.0 8.0 8.0 8.0 8.0
Sanitation 12 12 11 10.5 10.5 10.0 10.0 10.0 10.0 10.0
Forestry 0 0 0 0 0 0 0 0 0 0
Fleet (vehicle) Maintenance 6 6 6 6 6 6 6 6 6 6
Water
Water Plant 7 7 7 7 6.5 6.5 6.5 6.5 6.5 6.5
Water and Sewer 10 10 9 9 8.5 8.5 8.5 8.5 8.5 8.5
Parks 15.4 15.4 15.4 15.4 15.4 15.0 15.0 15.0 15.0 15.0
Recreation 15.4 15.4 15.4 15.4 15.4 16.0 16.0 16.0 16.0 16.0
Golf Course 3.2 2.2 2.2 2.2 2.2 0.0 0.0 0.0 0.0 0.0
Cemetery 2 2 2 2 2 2 3 3 3 3
Senior Resources 3 3 3 3 3 3 3 3 3 3
Sub - total City 227 226 224 224 214 213.4 209.5 209.75 209.75 210.75
Library 27.90 27.8 28.2 28.2 29.2 30.5 30.5 31.0 30.0 31.0
Total all 254.9 253.8 252.2 252.2 243.2 243.9 240 240.75 239.75 241.75
Data Source
City Departments and employee totals as of April 30th
199
164
City of Lake Forest
Operating Indicators
Last Ten Fiscal Years
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Government
City Clerk
Real Estate Transfer Tax (1)
Number of Transactions 297 382 440 394 355 361 425 418 369 663
Rebates Issued 37 40 67 40 44 37 40 45 33 63
Birth Certificates Issued 2,821 2,675 2,250 2,556 2,575 2,474 2,807 2,759 2,525 2,617
Passports Issued (2)29 0 0 0 0 0 0 0 0 0
Community Development
Building permits issued 3,451 3,197 3,418 3,667 3,855 3,632 3,753 4,275 3,716 3,847
Residential construction 11 7 13 20 27 21 9 13 18 29
Commercial construction 1 2 1 1 1 1 4 - 1 2
Building inspections conducted 8,645 8,925 8,651 9,657 11,009 11,707 10,798 11,214 10,586 10,466
Public Safety
Fire protection
I.S.O. rating 4 4 4 4 4 3 3 3 3 3
Number of calls answered
EMS 1,607 1,726 1,574 1,785 1,712 1,923 1,909 1,839 2,232 1,868
Fire 1,734 1,403 1,497 1,503 1,367 1,385 1,448 1,450 1,448 1,127
Police (calendar year)
Non traffic arrests 335 237 191 89 166 129 76 157 83 80
Parking violations 7,114 7,013 5,979 5,250 3,907 5,396 4,325 6,891 3,748 1,107
Traffic violations 2,028 2,220 1,877 1,741 1,985 1,718 949 1,909 1,583 1,487
Public Works
Streets
Street resurfacing (miles) (calender year)7.09 5.92 5.00 5.50 2.40 3.28 2.63 2.20 3.40 1.90
Number of snow events
Salting 14 23 27 21 24 15 10 9 6 5
Plowing 12 12 21 20 10 5 10 9 10 14
Inches of snow 21 36 48 50 24 22 45 46 26 63
Sanitation
Refuse collection customers 6,471 6,472 6,462 6,654 6,295 6,467 6,467 6,484 6,503 6,527
Parks and Recreation (3)
Fitness
Number of programs 322 264 336 181 346 215 200 257 246 682
Units of participation 1,196 1,060 1,587 1,216 1,271 1,473 1,430 1,446 1,442 2,079
Athletics
Number of programs 309 283 270 341 168 275 237 466 460 792
Units of Participation 2,932 2,704 2,524 2,282 1,348 2,006 2,026 1,931 1,958 561
Lakefront, Early Childhood Education
and Lifetime Activities
Number of programs 395 319 294 126 130 176 161 228 223 298
Units of participation 1,424 1,576 1,380 752 1,393 1,221 1,385 1,679 1,685 443
Cultural Arts/Special Events
Number of programs 270 306 286 87 147 286 246 310 312 550
Units of participation 2,008 1,972 1,999 1,329 1,579 4,133 4,743 5,064 5,078 1,698
200
165
City of Lake Forest
Operating Indicators (Continued)
Last Ten Fiscal Years
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Wildlife Discovery Center, Ridge Teams Course
and Adventure
Number of programs 104 37 47 20 20 26 34 31 33 24
Units of participation 582 301 360 2,263 2,802 3,685 2,148 2,233 2,224 98
Developed parks and recreation areas 10 10 10 10 11 11 11 10 11 11
Developed park acreage 404 404 404 404 405 405 405 344 344 344
Sites with playgrounds 8 9 9 9 9 9 9 9 9 9
Sites with baseball diamonds 8 8 8 8 8 8 8 8 7 7
Sites with soccer fields 7 7 7 7 7 7 7 7 7 7
Sites with basketball standards 5 5 5 5 5 5 5 5 4 4
Sites with tennis courts 6 6 6 6 6 6 6 6 6 6
Deer Path Golf Course
Size 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes 18 holes
Rounds of Play 31,949 30,321 29,435 27,956 29,445 27,101 24,631 26,184 24,666 24,508
Daily fee 14,466 13,646 17,449 17,646 20,478 19,755 18,660 21,172 20,089 20,380
Seasonal 17,483 16,675 11,986 10,310 8,967 7,346 5,971 5,012 4,577 4,128
Water
New Connections (tap-ons)22 20 28 33 66 30 23 29 21 27
Meters in operation 6,755 6,754 6,751 6,764 6,810 6,854 6,854 6,840 6,850 6,899
Meters connected to sewerage system 6,583 6,584 6,587 6,577 6,645 6,718 6,778 6,766 6,789 6,832
Average daily consumption (MGD)3.759 4.202 3.652 3.250 3.162 3.499 3.550 3.430 3.132 3.400
Peak daily consumption (MGD)11.805 10.298 8.611 7.345 8.268 8.315 8.926 7.247 7.916 8.180
Rated daily pumping capacity (MGD)14 14 14 14 14 14 14 14 14 14
Total gallons pumped during fiscal year
(in millions)1,372.0 1,534.0 1,332.8 1,187.6 1,157.2 1,277.0 1,296.0 1,252.0 1,146.4 1,241.0
Municipal paid parking facilities
Long- term parking spaces
Miscellaneous lots 813 813 813 813 813 813 813 813 813 813
Union Pacific (CBD district)98 98 98 98 98 98 98 98 98 98
Metra (Telegraph Road)502 502 502 502 502 502 502 502 502 502
Short-term parking spaces 341 341 341 341 341 341 341 341 341 341
Component Unit
Library services
Books and non print materials 145,539 147,330 148,318 146,214 146,153 221,568 248,598 147,024 149,026 122,852
Registered borrowers 16,200 15,160 15,403 15,440 15,460 15,518 13,588 13,946 7,908 9,408
Fiscal yearbooks, items
or materials circulation 485,450 457,632 450,876 410,852 383,561 376,144 551,232 366,128 346,603 262,366
Data Source
City departments
(1) Collection of real estate transfer tax began in July 2006 (FY2007).
(2) The City began to issue passports in FY2003 and stopped in FY2012.
(3) a. Fitness data does not include Fitness Center memberships.
b. Units of participation may include an individual participant more than once.
N/A equals data not available
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City of Lake Forest
Capital Asset Statistics
Last Ten Fiscal Years
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public Safety
Police
Stations 1 1 1 1 1 1 1 1 1 1
Vehicles 23 25 23 23 21 24 24 23 23 23
Fire protection
Stations 2 2 2 2 2 2 2 2 2 2
Vehicles 14 14 17 15 17 17 15 18 18 19
Public Works
Bridges
Vehicle 14 14 14 14 14 14 14 14 14 14
Pedestrian 12 12 12 12 12 12 12 13 13 13
Streets
Streets (centerline miles)119.00 119.00 119.24 119.24 119.24 119.24 119.24 119.24 119.24 119.24
Streetlights
Gas 438 438 438 438 438 438 438 438 438 438
Electric 1,526 1,526 1,536 1,570 1,570 1,570 1,570 1,570 1,570 1,570
Storm sewer (miles)219.41 219.41 219.41 219.41 219.43 219.43 219.46 219.54 219.54 219.54
Parks and Recreation
Acreage 403.7 404 404 404 405 405 405 344 344 344
Water
Water mains (miles)165.25 165.25 165.79 166.44 166.44 166.89 167.68 167.68 167.73 167.84
Fire hydrants 1,362 1,362 1,362 1,511 1,511 1,511 1,519 1,374 1,400 1,400
Wastewater
Sanitary sewers (miles)138.95 138.90 138.95 138.95 139.43 139.43 140.25 140.25 140.25 140.25
Data Source
City departments
N/A = data not available
202
The City of Lake Forest
CITY COUNCIL MEETING
Proceedings of the Monday, October 18, 2021, immediately following the Finance Committee
City Council Meeting
REMOTE ACCESS MEETING
CALL TO ORDER AND ROLL CALL: Honorable Mayor Pandaleon called the meeting to order at 8:10pm, and
the Assistant City Manager Mike Strong called the roll of Council members.
Present: Honorable Mayor Pandaleon, Alderman Morris, Alderman Karras, Alderman Rummel, Alderman
Notz, Alderman Preschlack, Alderman Goshgarian, Alderman Buschmann and Alderman Weber.
Absent: none
CALL TO ORDER AND ROLL CALL
PLEDGE OF ALLEGIANCE was recited.
REPORTS OF CITY OFFICERS
COMMENTS BY MAYOR
Mayor Pandaleon made the following statement as required by the Open Meetings Act. In accordance with
state statute, Mayor Pandaleon has made a determination that it was not practical or prudent to schedule
an in-person City Council meeting because of the COVID-19 pandemic, which is why this October 18, 2021
City Council meeting is being held remotely.
Mayor Pandaleon complimented Director of Finance, Elizabeth Holleb and her staff for the finance
committee presentation made prior to the City Council meeting. The City has maintained an outstanding
financial position, and continues to provide high quality services while being fiscally responsible.
COMMENTS BY CITY MANAGER
City Manager, Jason Wicha, provided a reminder to the City Council regarding Ward meetings. The final
meeting, which is the Fourth Ward, will convene via zoom on Tuesday, October 26 at 7 pm.
OPPORTUNITY FOR CITIZENS TO ADDRESS THE CITY COUNCIL ON NON-AGENDA ITEMS
Members of the public can provide public comment by calling into the following number during the
meeting: 847-810-3643
Rommy Lopat offered comments to the City Council. Mayor Pandaleon asked the City Attorney to clarify the
City Code based on Ms. Lopats comment.
COMMITTEE REPORTS
FINANCE COMMITTEE
1. Distinguished Budget Presentation Award
- Alderman James Morris, Finance Committee Chairman
203
Proceedings of the Monday, October 18, 2021
Regular City Council Meeting
Finance Committee Chairman James Morris presented the Distinguished Budget Presentation Award stating
that it is the highest form of recognition in governmental budgeting, and its attainment is a significant
accomplishment by a government and its management. This is the sixth consecutive year it has been
awarded to the City of Lake Forest. Chairman Morris presented the award to Elizabeth Holleb, Director of
Finance, for her efforts in coordinating the preparation of the Annual Budget and for leading the efforts in
making the required changes to the City’s budget document to meet the stringent requirements of the
GFOA budget awards program.
ITEMS FOR OMNIBUS VOTE CONSIDERATION
1. Approval of October 04, 2021, City Council Meeting Minutes
2. Acknowledge Receipt of the FY2021 Treasurer’s Report
3. Award of Contract with Advanced Tree Care, for an Amount Not to Exceed $47,000, to
Extend MPI Tree Pruning Services for Tree Pruning in FY2022.
4. Approval of a One-Year Contract Renewal with InterDev for Information Technology Support
in the Amount of $130,200
5. Approve Four Year Agreement with Kaplan Snow for Building Sidewalk Snow & Ice Services
included in the FY2022 – FY2025 Operating Budget for the Sum of $240,000.
6. Consideration of Ordinances Approving Recommendations from the Building Review Board.
(First Reading, and if Desired by the City Council, Final Approval)
7. Consideration of Ordinance Approving a Recommendation from the Zoning Board of
Appeals. (First Reading, and if Desired by the City Council, Final Approval)
COUNCIL ACTION: Approval of the seven (7) Omnibus items as presented
Mayor Pandaleon asked members of the Council if they would like to remove any item or take it separately.
Seeing none, he asked for a motion. Alderman Morris made a motion to approve the seven (7) Omnibus
items as presented, seconded by Alderman Karras. The following voted “Aye”: Alderman Morris, Karras,
Rummel, Notz, Preschlack, Goshgarian, Buschmann and Weber. The following voted “Nay”: None. 8-Ayes, 0
Nays, motion carried.
Information such as Purpose and Action Requested, Background/Discussion, Budget/Fiscal Impact,
Recommended Action and a Staff Contact as it relates to the Omnibus items can be found on the agenda.
ORDINANCES
OLD BUSINESS
NEW BUSINESS
204
Proceedings of the Monday, October 18, 2021
Regular City Council Meeting
ADDITIONAL ITEMS FOR COUNCIL DISCUSSION/COMMENTS BY COUNCIL MEMBERS
Alderman Weber provided comments regarding trick-or-treating hours, and information about the Lake
Forest Caucus.
ADJOURNMENT
There being no further business Mayor Pandaleon asked for a motion. Alderman Goshgarian made a motion
to adjourn, seconded by Alderman Morris. Motion carried unanimously by voice vote at 8:27 pm.
Respectfully Submitted
Margaret Boyer, City Clerk
A video of the City Council meeting is available for viewing at the Lake Forest Library and on file in the Clerk’s
office at City Hall. You can also view it on the website by visiting www.cityoflakeforest.com. Click on I Want
To, then click on View, then choose Archived Meetings Videos.
205
RESOLUTION OF APPRECIATION
WHEREAS
has served The City of Lake Forest as a member of the
BOARD OR COMMISSION
YYYY-YYYY
WHEREAS, he/she has devoted much valuable time and personal attention to the work of this
commission and, on behalf of the citizens of Lake Forest, continually met his/her responsibilities
with purpose and dedication; and
WHEREAS, the citizens of Lake Forest recognize and are deeply appreciative of the valuable
time and service he/she contributed to the preservation and improvement of the quality of life in
our community by serving on this commission;
NOW, THEREFORE, BE IT RESOLVED that the City Council of The City of Lake Forest,
Illinois, hereby expresses the profound gratitude of the citizens of Lake Forest to NAME for the
loyal and faithful public service he/she has given by means of this resolution, which shall be
spread upon the permanent records of the City Council.
Adopted by the City Council of
The City of Lake Forest this
1st day of November, 2021
______________________________
Mayor
206