Lake Forest approves debt-cap amendment and authorizes bonds for public safety facility; sets tax-levy hearing date

The Lake Forest City Council on Nov. 3 approved several related finance measures: a final-reading amendment to the city’s self-limiting (debt-cap) ordinance, a parameters bond ordinance authorizing up to $20,350,000 in general obligation bonds for renovation of a building to use as a public safety facility, and a nonbinding estimate of property-tax revenue for the 2025 levy process with a Dec. 1, 2025 public hearing date if required under the Truth in Taxation statute.

Debt-cap amendment: Finance Director Katie Skibbe explained the amendment allows staff to assume up to 3% annual growth in the municipal price index when modeling debt capacity. The change is intended to preserve flexibility for long-range capital planning and to avoid an estimated $1.1 million in additional debt-service cost that would arise if the cap were held flat through 2040.

Bond ordinance: The council approved, on second reading, parameters authorizing the sale of not-to-exceed $20,350,000 in general-obligation bonds to finance capital improvements, including renovation and site work for a public safety facility. Skibbe said the financing model combines roughly $20 million in bonds with approximately $6 million in fund reserves and estimated issuance costs; she presented homeowner tax-impact estimates phased in through 2026 (a $1,000,000 home would see a roughly $69 increase at full phase-in, with an aggregate additional tax of about $183 annually for that hypothetical home).

Tax levy estimate: Staff presented a nonbinding levy estimate for 2025 that reflected assessed-value growth estimates, required pension funding, debt-service levies and a 2% operating increase for the general levy. Staff stated it did not anticipate a Truth in Taxation hearing because the estimate was below the statutory 5% threshold, but the council set Dec. 1, 2025 as the public hearing date if needed.

Council action: The council approved the debt-cap ordinance restatement (roll-call 8–0), the bond parameters ordinance (roll-call 8–0) and the nonbinding tax-levy estimate and public-hearing date (roll-call 8–0). Staff will proceed with Moody’s rating outreach and anticipates a bond sale in January, subject to market conditions.