With a shortfall of $11.7 million, amounting to $1,800 per taxpayer, Lake Forest earned a “C” grade from Truth in Accounting, according to the group’s analysis of suburban finances.
The city has $92.3 million in assets and $103.9 million in unpaid bills, the report states.
Lake Forest earned a “C” because its taxpayer burden – which refers to how much it would cost per taxpayer to pay off the village’s debt – is below $5,000.
"Lake Forest's financial problems stem from unfunded retirement obligations in the form of pension and other postemployment benefits," the analysis concludes. "The city has promised to pay out $53.7 million in pensions and $4 million in retiree health care benefits, but hasn't set aside enough money to fully fund them."
Truth in Accounting, based in Chicago, analyzes government finances from all U.S. states and produces reports aimed at empowering citizens with accurate data and encouraging government transparency.
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