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Lake County Gazette

Thursday, October 31, 2024

OPINION: City of Lake Forest Financial Update

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Former Lake Forest Mayor George A. Pandaleon | YouTube

Former Lake Forest Mayor George A. Pandaleon | YouTube

Much has been accomplished by our Lake Forest City government over the past few years, under the leadership of Mayor Tack.  This work has ensured that Lake Forest residents will continue to benefit from first-class services, facilities and infrastructure into the future.  This has all been accomplished while maintaining Lake Forest’s status as the municipality with the lowest property tax rate on the North Shore and in Lake County.  Some highlights and explanations about how this has been achieved are described in this article.

Property Taxes

Lake Forest property tax rates remain the lowest Lake County and on the North Shore.  They increased in 2023 (payable in 2024) because property values have increased (which is great news!).  In addition, 2023 was a quadrennial reassessment year in which all properties’ assessed valuations are supposed to be adjusted to current market value.  School District 115 also put through a large increase in their tax levy to fund the principal and interest payments on the $106 million bond issuance needed to renovate the high school building.  The City, which only accounts for 22% of our property tax bills, has managed its finances so that its tax levy has been kept well under its self-imposed 5% annual increase cap for many years, including those years when major capital projects have been completed.  The City uses numerous sources of funding in addition to property taxes to achieve this result.  Over $19 million in grants have been won for infrastructure projects since 2019.  Motor fuel, income and sales tax  distributions from the State, the real estate transfer tax, as well as fees for various services are other important revenue sources.  And finally, the exceptional generosity of Lake Forest residents, who have a history of making private donations to fund special projects, has been a source of funds.  This kind of philanthropy is quite unique to Lake Forest, and is a major reason that it is such a special place to live.

Pensions

In 2017, at the suggestion of then Alderman Randy Tack, the City Council formed a special subcommittee to find ways to protect the City’s finances from the “fiscal cliff” that the State of Illinois and most Illinois communities are facing with their future pension funding requirements.  Acting on the recommendations of that subcommittee, from 2018 through 2025 the City has made larger contributions to the Fire and Police pension funds than are required by the State.  Harnessing the power of compound interest, these added contributions should result in the “flat-lining” of the City’s pension funding costs from 2026 into the future.  In its recent affirmation of the City’s AAA bond rating, Moody’s specifically pointed out Lake Forest’s proactive approach to its pension funding as something that other municipalities should consider emulating. 

Deerpath Park

In 2023, in response to an outcry from parents about the frequent cancellations of youth sports games and practices due to wet fields, the City installed state-of-the-art artificial fields and made major improvements to Deerpath Park which have been very effective.  Utilization of the new fields has far exceeded expectations, with informal practices having been held through the holiday season and into January!  The bonds that were issued to fund these improvements were structured with an interest-only period in the early years, to allow other previously issued bonds to be paid off.  This approach smoothed the impact on the tax levy and ensured that the City could stay within its self-imposed 5% annual tax increase cap.

New Police Station / Fire Station Renovation

The Public Safety Building on Deerpath Road was built in the 1960’s, in the days before there were female police officers and firefighters.  It has become far too small to house both the Police and Fire Departments.  Squad cars must be run overnight in the parking lot to keep the sophisticated on-board electronic equipment from freezing.  Officers frequently have to complete their police reports sitting in the lobby due to a shortage of desk space.  Training facilities are sub-standard for both departments.  These issues have been recognized but not funded for the past few years.  The City became aware that the office building at 1925 Field Court, which was vacant, was being eyed as a possible conversion to apartments and could be purchased at a bargain price.  Unlike the Fire Department, which needs to be centrally located, the Police are on patrol around the clock, so the location in Conway Park does not detract from their mission.  Mayor Tack put these pieces together, and the City recently closed on the purchase of the building, including its large underground parking garage, for $3.5 million; approximately one-tenth of the estimated $35 million it would cost to build. For perspective, Wilmette expects to spend $55 million to construct its new police station.  Including  land and other costs brings their total over $60 million, just for the police station.  Lake Forest will be getting a new police station and a newly renovated fire station for $30-$35 million.  The financing of this project will be managed similarly to the Deerpath Park bonds, resulting in minimal impact on the City’s tax levy.  This is another example of the City proactively addressing long term issues before they become emergencies, and saving taxpayers many millions of dollars in the process. 

Forest Park Boardwalk

Lake Forest has a long history of forming public/private partnerships, combining City funds and grants with private donations to fund special infrastructure projects.  Our beach is one such project from the mid 1980’s.  Over the past decade the Forest Park renovations, the two beach access road improvements, the stabilization of the bluff, and the renewal of the beach sand in the swimming areas have all been funded using these resources.  The entire park and beach infrastructure has now been substantially renovated after 35 years.  The spectacular new boardwalk was dedicated in mid-October.  The last piece will be the new playground, which will be completed in 2025.  The Boardwalk was funded approximately 50% with City funds and grant money, and 50% through the exceptional generosity of Lake Forest resident’s private donations. 

Lake Forest Residents enjoy some of the highest levels of service, facilities and infrastructure that can be found in any community in the country.  And they receive these benefits at a very reasonable cost when compared to other communities in the area.  The quality of life in Lake Forest is extraordinary.  This is not an accident.  Rather, it is the legacy of good City government that has delivered thoughtful long-range planning and prudent financial management, ensuring that Lake Foresters can be confident that the City’s future is bright.


George A. Pandaleon was Mayor of the City of Lake Forest from May of 2019 through April of 2023.    

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