speerfinancial.comspeerfinancial.com/pdf/highland park - 2020 pos.pdf · 2020-06-24 · new issue...

New Issue Investment Rating: Date of Sale: Thursday, July 9, 2020 Moody’s Investors Service … Between 9:45 and 10:00 A.M., C.D.T. (Rating Requested) (Open Speer Auction)

Official Statement

Subject to compliance by the City with certain covenants, in the opinion of Chapman and Cutler LLP, Chicago, Illinois (“Bond Counsel”), under present law, interest on the Bonds is excludable from gross income of the owners thereof for federal income tax purposes and is not included as an item of tax preference in computing the federal alternative minimum tax for individuals. Interest on the Bonds is not exempt from present State of Illinois income taxes. See “TAX EXEMPTION” herein for a more complete discussion. The Bonds are “qualified tax-exempt obligations” under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. See “QUALIFIED TAX-EXEMPT OBLIGATIONS” herein.

$4,990,000*

CITY OF HIGHLAND PARK Lake County, Illinois

General Obligation Refunding Bonds, Series 2020

Dated Date of Delivery Book-Entry Bank Qualified Due Serially December 30, 2020-2026 and 2030-2031 The $4,990,000* General Obligation Refunding Bonds, Series 2020 (the “Bonds”), are being issued by the City of Highland Park, Lake County, Illinois (the “City”). Interest is payable semiannually on June 30 and December 30 of each year, commencing December 30, 2020. Interest is calculated based on a 360-day year of twelve 30-day months. The Bonds will be issued using a book-entry system. The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the Bonds. The ownership of one fully registered Bond for each maturity will be registered in the name of Cede & Co., as nominee for DTC and no physical delivery of Bonds will be made to purchasers. So long as DTC or its nominee is the owner of the Bonds, principal and interest on the Bonds will be paid directly to DTC by Amalgamated Bank of Chicago, Chicago, Illinois, as paying agent and bond registrar. The Bonds will mature on December 30, in the following years and amounts.

AMOUNTS*, MATURITIES, INTEREST RATES, PRICES OR YIELDS AND CUSIP NUMBERS(1)

Principal Due Interest Yield or CUSIP Principal Due Interest Yield or CUSIP

Amount* Dec. 30 Rate Price Number(1) Amount* Dec. 30 Rate Price Number(1)

$360,000 .... 2020 _____% _____% __________ $ 380,000 ....... 2025 _____% _____% __________

315,000 .... 2021 _____% _____% __________ 400,000 ....... 2026 _____% _____% __________

335,000 .... 2022 _____% _____% __________ ********* ....... **** _____% _____% __________

345,000 .... 2023 _____% _____% __________ 1,220,000 ....... 2030 _____% _____% __________

360,000 .... 2024 _____% _____% __________ 1,275,000 ....... 2031 _____% _____% __________

Any consecutive maturities may be aggregated into term bonds at the option of the bidder,

in which case the mandatory redemption provisions shall be on the same schedule as above.

OPTIONAL REDEMPTION The Bonds due December 30, 2020-2026, inclusive, are not subject to redemption prior to maturity. The Bonds due December 30, 2030-2031, inclusive, are

callable in whole or in part at the option of the City on any date on or after December 30, 2028, at a price of par and accrued interest. If less than all the Bonds are called, they shall be redeemed in such principal amounts and from such maturities as determined by the City and within any maturity by lot. See “OPTIONAL REDEMPTION” herein.

PURPOSE, LEGALITY AND SECURITY

The proceeds of the Bonds will be used (i) to refund the City’s Taxable General Obligation Bonds, Series 2010A, and General Obligation Bonds, Series 2011A,

and (ii) to pay the costs of issuing the Bonds. See “PLAN OF FINANCING” herein. In the opinion of Bond Counsel, the Bonds are valid and legally binding upon the City and are payable from any funds of the City legally available for such

purpose, and all taxable property in the City is subject to the levy of taxes to pay the same without limitation as to rate or amount, except that the rights of the owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency, moratorium, reorganization and other similar laws affecting creditors’ rights and by equitable principles, whether considered at law or in equity, including the exercise of judicial discretion.

This Official Statement is dated June 24, 2020, and has been prepared under the authority of the City. An electronic copy of this Official Statement is available

from the www.speerfinancial.com web site under “Debt Auction Center/Official Statements Sales Calendars/Competitive”. Additional copies may be obtained from Ms. Julie Logan, Director of Finance/City Treasurer, City of Highland Park, 1707 St. Johns Avenue, Highland Park, Illinois 60035-3593, or from the Municipal Advisor to the City:

(1) CUSIP numbers appearing in this Official Statement have been provided by the CUSIP Service Bureau, which is managed on behalf of the American Bankers Association by S&P Capital IQ, a part of McGraw Hill Financial Inc. The City is not responsible for the selection of CUSIP numbers and makes no representation as to their correctness on the Bonds or as set forth on the cover of this Official Statement.

*Subject to change.

This

Pre

limin

ary

Offi

cial

Sta

tem

ent

and

the

info

rmat

ion

cont

aine

d he

rein

are

sub

ject

to

com

plet

ion

and

amen

dmen

t.

Und

er n

o ci

rcum

stan

ces

shal

l th

is P

relim

inar

y O

ffici

al S

tate

men

t co

nstit

ute

an o

ffer

to s

ell

or t

he s

olic

itatio

n of

an

offe

r to

buy

, no

r sh

all t

here

be

any

sale

of t

he B

onds

, in

any

juri

sdic

tion

in w

hich

suc

h of

fer,

sol

icita

tion

or s

ale

wou

ld b

e un

law

ful p

rior

to r

egis

trat

ion

or q

ualif

icat

ion

unde

r th

e se

curi

ties

law

s of

any

suc

h ju

risd

ictio

n.

(i)

For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission, this document, as

the same may be supplemented or corrected by the City from time to time (collectively, the “Official Statement”), may be treated as an Official Statement with respect to the Bonds described herein that is deemed near final as of the date hereof (or the date of any such supplement or correction) by the City.

The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates,

principal amounts and interest rates of the Bonds, together with any other information required by law or deemed appropriate by the City, shall constitute a “Final Official Statement” of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. Any such addendum or addenda shall, on and after the date thereof, be fully incorporated herein and made a part hereof by reference. Alternatively, such final terms of the Bonds and other information may be included in a separate document entitled “Final Official Statement” rather than through supplementing the Official Statement by an addendum or addenda.

No dealer, broker, salesman or other person has been authorized by the City to give any information or to make

any representations with respect to the Bonds other than as contained in the Official Statement or the Final Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized by the City. Certain information contained in the Official Statement and the Final Official Statement may have been obtained from sources other than records of the City and, while believed to be reliable, is not guaranteed as to completeness. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE CITY SINCE THE RESPECTIVE DATES THEREOF.

References herein to laws, rules, regulations, ordinances, resolutions, agreements, reports and other documents

do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference to the particular document, the full text of which may contain qualifications of and exceptions to statements made herein. Where full texts have not been included as appendices to the Official Statement or the Final Official Statement they will be furnished on request. This Official Statement does not constitute an offer to sell, or solicitation of an offer to buy, any securities to any person in any jurisdiction where such offer or solicitation of such offer would be unlawful.

(ii)

TABLE OF CONTENTS

Page BOND ISSUE SUMMARY ..................................................................................................................................................................................................................................................................... 1 CITY OF HIGHLAND PARK ................................................................................................................................................................................................................................................................. 2 THE BONDS ............................................................................................................................................................................................................................................................................................ 2 RISK FACTORS ....................................................................................................................................................................................................................................................................................... 3

Future Pension Plan Funding Requirements ....................................................................................................................................................................................................................................... 5 Cybersecurity ....................................................................................................................................................................................................................................................................................... 5 Local Economy .................................................................................................................................................................................................................................................................................... 5 Declining Equalized Assessed Valuations .......................................................................................................................................................................................................................................... 5 Loss or Change of Bond Rating .......................................................................................................................................................................................................................................................... 6 Secondary Market for the Bonds ......................................................................................................................................................................................................................................................... 6 Continuing Disclosure ......................................................................................................................................................................................................................................................................... 6 Suitability of Investment...................................................................................................................................................................................................................................................................... 6 Future Changes in Laws ...................................................................................................................................................................................................................................................................... 6 Factors Relating to Tax Exemption ..................................................................................................................................................................................................................................................... 7 Bankruptcy ........................................................................................................................................................................................................................................................................................... 7

THE CITY ................................................................................................................................................................................................................................................................................................. 7 Government Services ........................................................................................................................................................................................................................................................................... 8 City Water System ............................................................................................................................................................................................................................................................................... 9 Education ............................................................................................................................................................................................................................................................................................. 9 Recreation and Community Services .................................................................................................................................................................................................................................................. 9 Historic Preservation .........................................................................................................................................................................................................................................................................10 Arts and Human Services ..................................................................................................................................................................................................................................................................11 Socioeconomic Information ..............................................................................................................................................................................................................................................................11

SOCIOECONOMIC INFORMATION .................................................................................................................................................................................................................................................. 12 Overview ............................................................................................................................................................................................................................................................................................12 Employment .......................................................................................................................................................................................................................................................................................13 Housing ..............................................................................................................................................................................................................................................................................................15 Income ...............................................................................................................................................................................................................................................................................................15 Retail Activity ....................................................................................................................................................................................................................................................................................17

PLAN OF FINANCING ......................................................................................................................................................................................................................................................................... 18 DEFAULT RECORD ............................................................................................................................................................................................................................................................................. 18 SHORT-TERM BORROWING ............................................................................................................................................................................................................................................................. 18 DEBT INFORMATION ......................................................................................................................................................................................................................................................................... 19 PROPERTY ASSESSMENT AND TAX INFORMATION ................................................................................................................................................................................................................. 21 REAL PROPERTY ASSESSMENT, TAX LEVY AND COLLECTION PROCEDURES ................................................................................................................................................................. 23

Summary of Property Assessment, Tax Levy and Collection Procedures ........................................................................................................................................................................................23 Tax Levy and Collection Procedures.................................................................................................................................................................................................................................................23 Exemptions ........................................................................................................................................................................................................................................................................................24 Property Tax Extension Limitation Law ...........................................................................................................................................................................................................................................25 Truth in Taxation Law .......................................................................................................................................................................................................................................................................25

FINANCIAL INFORMATION .............................................................................................................................................................................................................................................................. 26 Investment Policy ..............................................................................................................................................................................................................................................................................26 Security ..............................................................................................................................................................................................................................................................................................26 No Consent or Updated Information Requested of the Auditor ........................................................................................................................................................................................................27 Summary Financial Information ........................................................................................................................................................................................................................................................27

EMPLOYEE RETIREMENT AND OTHER POSTEMPLOYMENT BENEFITS OBLIGATIONS .................................................................................................................................................. 32 Background Regarding Pension Plans ...............................................................................................................................................................................................................................................33

The Actuarial Valuation ............................................................................................................................................................................................................................................................. 33 GASB Standards ......................................................................................................................................................................................................................................................................... 33 Pension Plans Remain Governed by the Pension Code ............................................................................................................................................................................................................. 34

Illinois Municipal Retirement Fund ..................................................................................................................................................................................................................................................34 Contributions .............................................................................................................................................................................................................................................................................. 35 Measures of Financial Position .................................................................................................................................................................................................................................................. 35

Police Pension Plan ............................................................................................................................................................................................................................................................................35 Contributions .............................................................................................................................................................................................................................................................................. 36 Measures of Financial Position .................................................................................................................................................................................................................................................. 36

Fire Pension Plan ...............................................................................................................................................................................................................................................................................37 Contributions .............................................................................................................................................................................................................................................................................. 37 Measures of Financial Position .................................................................................................................................................................................................................................................. 38

Other Post-Employment Benefits ......................................................................................................................................................................................................................................................38 REGISTRATION, TRANSFER AND EXCHANGE ............................................................................................................................................................................................................................ 38 TAX EXEMPTION ................................................................................................................................................................................................................................................................................ 39 QUALIFIED TAX-EXEMPT OBLIGATIONS ..................................................................................................................................................................................................................................... 41 CONTINUING DISCLOSURE .............................................................................................................................................................................................................................................................. 42 OPTIONAL REDEMPTION .................................................................................................................................................................................................................................................................. 42 LITIGATION .......................................................................................................................................................................................................................................................................................... 43 CERTAIN LEGAL MATTERS ............................................................................................................................................................................................................................................................. 43 OFFICIAL STATEMENT AUTHORIZATION .................................................................................................................................................................................................................................... 43 INVESTMENT RATING ....................................................................................................................................................................................................................................................................... 43 UNDERWRITING .................................................................................................................................................................................................................................................................................. 43 MUNICIPAL ADVISOR ........................................................................................................................................................................................................................................................................ 44 CERTIFICATION .................................................................................................................................................................................................................................................................................. 44 APPENDIX A - FISCAL YEAR 2018 COMPREHENSIVE ANNUAL FINANCIAL REPORT APPENDIX B - DESCRIBING BOOK-ENTRY-ONLY ISSUANCE APPENDIX C - PROPOSED FORM OF OPINION OF BOND COUNSEL APPENDIX D - PROPOSED FORM OF CONTINUING DISCLOSURE UNDERTAKING OFFICIAL BID FORM OFFICIAL NOTICE OF SALE

City of Highland Park, Lake County, Illinois General Obligation Refunding Bonds, Series 2020

1

BOND ISSUE SUMMARY This Bond Issue Summary is expressly qualified by the entire Official Statement, including the Official Notice of Sale and the Official Bid Form, which are provided for the convenience of potential investors and which should be reviewed in their entirety by potential investors. Issuer: City of Highland Park, Lake County, Illinois. Issue: $4,990,000* General Obligation Refunding Bonds, Series 2020. Dated Date: Date of delivery (expected to be on or about July 23, 2020). Interest Due: Each June 30 and December 30, commencing December 30, 2020. Principal Due: Serially each December 30, commencing December 30, 2020 through 2026, 2030 and 2031,

as detailed on the front page of this Official Statement. Optional Redemption: The Bonds maturing on or after December 30, 2030, are callable in whole or in part on any

date at the option of the City on or after December 30, 2028, at a price of par and accrued interest. See “OPTIONAL REDEMPTION” herein.

Authorization: The Bonds are being issued pursuant to the home-rule powers of the City under Section 6,

Article VII of the 1970 Constitution of the State of Illinois, and a bond ordinance adopted by the City Council of the City on the 9th day of March, 2020, as supplemented by a notification of sale.

Security: The Bonds are valid and legally binding upon the City and are payable from any funds of the

City legally available for such purpose, and all taxable property in the City is subject to the levy of taxes to pay the same without limitation as to rate or amount.

Investment Rating: An investment rating for the Bonds has been requested from Moody’s Investors Service, New

York, New York. See “INVESTMENT RATING” herein. Purpose: The proceeds of the Bonds will be used (i) to refund the City’s Taxable General Obligation

Bonds, Series 2010A, and General Obligation Bonds, Series 2011A, and (ii) to pay the costs of issuing the Bonds. See “PLAN OF FINANCING” herein.

Tax Exemption: Chapman and Cutler LLP, Chicago, Illinois, Bond Counsel, will provide an opinion as to the

federal tax exemption of the interest on the Bonds as discussed under “TAX EXEMPTION” in this Official Statement. Interest on the Bonds is not exempt from present State of Illinois income taxes. See also APPENDIX C for the proposed form of Bond Counsel opinion.

Bank Qualification: The Bonds are “qualified tax-exempt obligations” under Section 265(b)(3) of the Internal

Revenue Code of 1986, as amended. See “QUALIFIED TAX-EXEMPT OBLIGATIONS” herein.

Bond Registrar/Paying Agent: Amalgamated Bank of Chicago, Chicago, Illinois. Delivery: The Bonds are expected to be delivered on or about July 23, 2020. Book-Entry Form: The Bonds will be registered in the name of Cede & Co. as nominee for The Depository Trust

Company (“DTC”), New York, New York. DTC will act as securities depository of the Bonds. See APPENDIX B herein.

Denomination: $5,000 or integral multiples thereof. Municipal Advisor: Speer Financial, Inc., Chicago, Illinois.

*Subject to change.


2

CITY OF HIGHLAND PARK Lake County, Illinois

Nancy R. Rotering

Mayor

Council Members

Anthony E. Blumberg Daniel A. Kaufman Adam Stolberg Michelle Holleman Alyssa Knobel Kim Stone

_______________________________

Officials

Ghida S. Neukirch City Clerk/City Manager

Julie Logan Director of Finance/City Treasurer

Steven M. Elrod, Esq.

Elrod Friedman Corporation Counsel

THE BONDS

The General Obligation Refunding Bonds, Series 2020 (the “Bonds”), are being issued pursuant to the home-rule powers of the City of Highland Park, Lake County, Illinois (the “City”), under Section 6, Article VII of the 1970 Constitution of the State of Illinois, and a bond ordinance adopted by the City Council of the City on the 9th day of March, 2020 (as supplemented by a notification of sale, the “Bond Ordinance”). The Bonds constitute valid and legally binding full faith and credit general obligations of the City, payable from ad valorem taxes levied on all taxable property in the City, without limitation as to rate or amount. The Bond Ordinance provides for the levy of ad valorem taxes, unlimited as to rate or amount, upon all taxable property within the City in amounts sufficient to pay, as and when due, all principal of and interest on the Bonds (the “Pledged Taxes”). No Pledged Taxes will be levied to pay debt service on the Bonds through December 30, 2020. Such debt service will be paid from the taxes levied to pay the hereinafter defined Refunded Bonds or other lawfully available funds of the City. The Bond Ordinance will be filed with the County Clerk of The County of Lake, Illinois, and will serve as authorization to said County Clerk to extend and collect the property taxes as set forth in the Bond Ordinance.


3

RISK FACTORS The purchase of the Bonds involves certain investment risks. Accordingly, each prospective purchaser of the Bonds should make an independent evaluation of the entirety of the information presented in this Official Statement and its appendices and exhibits in order to make an informed investment decision. Certain of the investment risks are described below. The following statements, however, should not be considered a complete description of all risks to be considered in the decision to purchase the Bonds, nor should the order of the presentation of such risks be construed to reflect the relative importance of the various risks. There can be no assurance that other risk factors are not material or will not become material in the future. Finances of the State of Illinois The State of Illinois (the “State”) has experienced adverse fiscal conditions resulting in significant shortfalls between the State’s general fund revenues and spending demands. The State’s long-term general obligation bonds carry the lowest ratings among states, such long-term ratings are at the lowest investment grade of rating level. The State failed to enact a full budget for the State fiscal years ending June 30, 2016, and June 30, 2017, which had a significant, negative impact on the State’s finances, although certain spending occurred through statutory transfers, statutory continuing appropriations, court orders and consent decrees, including spending for elementary and secondary education. The State enacted full budgets for the State fiscal year ending June 30, 2018 (the “Fiscal Year 2018 Budget”), for the State fiscal year ending June 30, 2019 (the “Fiscal Year 2019 Budget”), for the State fiscal year ending June 30, 2020 (the “Fiscal Year 2020 Budget”) and for the State fiscal year ending June 30, 2021 (the “Fiscal Year 2021 Budget”). Under current law, the State shares a portion of sales tax, income tax and motor fuel tax revenue with municipalities, including the City. The State’s general fiscal condition and the underfunding of the State’s pension systems have materially adversely affected the State’s financial condition and may result in decreased or delayed revenues allocated to the City. In addition, the Fiscal Year 2018 Budget, the Fiscal Year 2019 Budget and the Fiscal Year 2020 Budget contain a provision reducing the amount of income tax revenue to be deposited into the Local Government Distributive Fund for distribution to municipalities, like the City, by 10% for State Fiscal Year 2018 and by 5% for State Fiscal Year 2019 and State Fiscal Year 2020. The Fiscal Year 2021 Budget did not include any such reduction. The Fiscal Year 2018 Budget, the Fiscal Year 2019 Budget, the Fiscal Year 2020 Budget and the Fiscal Year 2021 Budget also include a service fee for collection and processing of local-imposed sales taxes. Such fee was 2% of such sales taxes for State Fiscal Year 2018 and was reduced to 1.5% of such sales taxes for State Fiscal Year 2019, State Fiscal Year 2020 and State Fiscal Year 2021. The City cannot determine at this time the financial impact of these provisions on its overall financial condition, but such provisions may result in lower income tax revenues and sales tax revenues distributed to the City. The City can give no assurance that there will not be additional changes in applicable law modifying the manner in which local revenue sharing is allocated by the State, nor can the City predict the effect the State’s financial problems, including those caused by the continued spread of the Novel Coronavirus 2019 (“COVID-19”) or the various governmental or private actions in reaction thereto, may have on the City’s future finances. In response to the COVID-19 pandemic, the rating agencies have lowered their respective rating outlooks on the State’s long-term general obligation bonds to negative from stable. See “Potential Impact of the Novel Coronavirus 2019” below.


4

Potential Impact of the Novel Coronavirus 2019 The COVID-19 pandemic, along with various governmental measures taken to protect public health in light of the pandemic, has had an adverse impact on global financial markets and economies, including financial markets and economic conditions in the United States. The impact of the COVID-19 pandemic on the U.S. economy is expected to be broad based and to negatively impact national, state and local economies. In response to such expectations, President Trump has declared a “national emergency” and Illinois as a disaster area, which, among other effects, allows the executive branch to disburse disaster relief funds to address the COVID-19 pandemic and related economic dislocation. On March 27, 2020, President Trump signed the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), which is directed at mitigating the economic downturn and health care crisis caused by COVID-19. The CARES Act allocates approximately $4.9 billion to the State for expenditures incurred due to the public health emergency with respect to COVID-19, split between the State ($2.7 billion) and local governments (the City of Chicago and Illinois counties with populations that exceed 500,000) ($2.2 billion). Governor Pritzker has declared all counties in the State as disaster areas because of the spread of COVID-19. The Governor has also signed various executive orders to prevent the further spread of COVID-19 that have (i) required all Illinoisans (with certain exceptions) to stay in their homes; (ii) closed all bars and restaurants to dine-in customers, (iii) ceased operations for all non essential businesses in the State and (iv) prohibited all public and private gatherings of 10 people or more. Such restrictions extended through May 29, 2020. The Governor has implemented a multi-phased approach to reopening the State’s businesses. As such, following the expiration of the executive orders described in the previous sentence, the Governor announced that all portions of the State have moved to the next phase of the reopening plan, which eases certain of the restrictions previously imposed by such executive orders. Despite moneys the State is expected to receive from the federal government, including from the CARES Act, the spread of COVID 19 and the actions taken in response thereto have had, and are expected to continue to have, a significant negative impact on the State’s economy, which could affect the revenues received by the City from the State. The State is not yet able to assess the severity of the economic impact of the COVID 19 pandemic. The State’s initial estimates project revenues for the remainder of fiscal year 2020 to be approximately $2.7 billion less than previously projected, and fiscal year 2021 revenues to be approximately $4.6 billion less than previously projected. In addition, the State borrowed $1.2 billion on June 5, 2020, from the Federal Reserve’s Municipal Liquidity Facility, which will provide additional revenues in fiscal year 2020, but must be repaid out of the State’s general revenues during fiscal year 2021. The State is expected to continue to develop economic forecasts and revenue estimates as circumstances change and additional information becomes available. It is possible that actual results will vary, and perhaps vary widely, from the amounts described in this paragraph. The adverse impact on the State’s finances may, in turn, adversely affect the City’s finances due to delays or reductions in the amount received by the City from the State. Likewise, the City’s finances may be adversely affected in manners separate and apart from the impact on the State. The City, however, cannot predict the effect the spread of COVID 19 or the various governmental or private actions in reaction thereto will have on its finances or operations, including receipt of sales, income and utility taxes and real estate tax collections. If there is a negative impact on the receipt of such taxes and/or extension and collection of real estate taxes, the City may have difficulty paying debt service on the Bonds.


5

Future Pension Plan Funding Requirements The City participates in the Police Pension Plan and the Fire Pension Plan, both as hereinafter defined. Under the Illinois Pension Code, as amended (the “Pension Code”), the City is required to contribute to each plan in order to achieve a Funded Ratio of 90% by 2040. In order to achieve the 90% Funded Ratio for both plans by 2040, it is expected that the annual employer contributions required by the City will increase over time. The City also participates in the Illinois Municipal Retirement Plan (the “IMRF Plan”), which is a defined benefit pension plan administered by the Illinois Municipal Retirement Fund (“IMRF”); employer contributions are projected by the IMRF to increase over time. Increasing annual required employer contributions for the City could have a material adverse effect on the finances of the City. The Pension Code allows the State Comptroller, after proper procedures have taken place, to divert State payments intended for the City, which include Pledged Revenues for the Sales Tax Bonds, to the Police Pension Plan and the Fire Pension Plan to satisfy contribution shortfalls by the City. If the City does not make 100% of its annual required contributions to the Police Pension Plan and Fire Pension Plan, the City may have revenues withheld by the State Comptroller, which include Pledged Revenues. Such withholdings by the State Comptroller could adversely affect the City’s financial health and operations. See “EMPLOYEE RETIREMENT AND OTHER POSTEMPLOYMENT BENEFITS OBLIGATIONS” herein for a more complete discussion. Cybersecurity Computer networks and data transmission and collection are vital to the efficient operation of the City. Despite the implementation of network security measures by the City, its information technology and infrastructure may be vulnerable to deliberate attacks by hackers, malware, ransomware or computer virus, or may otherwise be breached due to employee error, malfeasance or other disruptions. Any such breach could compromise networks and the information stored thereon could be disrupted, accessed, publicly disclosed, lost or stolen. Although the City carries cybersecurity insurance and does not believe that its information technology systems are at a materially greater risk of cybersecurity attacks than other similarly-situated governmental entities, any such disruption, access, disclosure or other loss of information could have an adverse effect on the City’s operations and financial health. Further, as cybersecurity threats continue to evolve, the City may be required to expend significant additional resources to continue to modify and strengthen security measures, investigate and remediate any vulnerabilities, or invest in new technology designed to mitigate security risks. Local Economy The financial health of the City is in part dependent on the strength of the local economy. Many factors affect the local economy, including rates of employment and economic growth and the level of residential and commercial development. It is not possible to predict to what extent any changes in economic conditions, demographic characteristics, population or commercial and industrial activity will occur and what impact such changes would have on the finances of the City. Declining Equalized Assessed Valuations The amount of property taxes extended for the City is determined by applying the various operating tax rates and the bond and interest tax rate levied by the City to the City’s Equalized Assessed Valuation (“EAV”). The City’s EAV could decrease for a number of reasons including, but not limited to, a decline in property values or large taxpayers moving out of the City. As detailed below, the City’s EAV has declined in two of the most recent five years. Declining EAVs and increasing tax rates (certain of which may reach their rate ceilings) could reduce the amount of taxes the City is able to receive.


6

Loss or Change of Bond Rating The Bonds have been rated "___" by Moody's Investors Service (“Moody’s”), New York, New York. The rating can be changed or withdrawn at any time for reasons both under and outside the City’s control. Any change, withdrawal or combination thereof could adversely affect the ability of investors to sell the Bonds or may affect the price at which they can be sold. Secondary Market for the Bonds No assurance can be given that a secondary market will develop for the purchase and sale of the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price. The Underwriter is not obligated to engage in secondary market trading or to repurchase any of the Bonds at the request of the owners thereof. Prices of the Bonds as traded in the secondary market are subject to adjustment upward and downward in response to changes in the credit markets and other prevailing circumstances. No guarantee exists as to the future market value of the Bonds. Such market value could be substantially different from the original purchase price. Continuing Disclosure

A failure by the City to comply with the Undertaking for continuing disclosure (see “CONTINUING DISCLOSURE” and “APPENDIX E - FORM OF CONTINUING DISCLOSURE UNDERTAKING” herein) will not constitute an event of default on the Bonds. Any such failure must be reported in accordance with Rule 15c2-12 (the “Rule”) adopted by the Securities and Exchange Commission (the “Commission”) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and may adversely affect the transferability and liquidity of the Bonds and their market price. Suitability of Investment The interest rate borne by the Bonds is intended to compensate the investor for assuming the risk of investing in the Bonds. Each prospective investor should carefully examine the Official Statement and its own financial condition to make a judgment as to its ability to bear the economic risk of such an investment, and whether or not the Bonds are an appropriate investment for such investor. Future Changes in Laws Various state and federal laws, regulations and constitutional provisions apply to the City and to the Bonds. The City can give no assurance that there will not be a change in, interpretation of, or addition to such applicable laws, provisions and regulations which would have a material effect, either directly or indirectly, on the City, or the taxing authority of the City. For example, many elements of local government finance, including the issuance of debt and the levy of property taxes, are controlled by state government. Future actions of the State may affect the overall financial conditions of the City, the taxable value of property within the City, and the ability of the City to levy property taxes or collect revenues for its ongoing operations.


7

Factors Relating to Tax Exemption

As discussed under “TAX EXEMPTION” herein, interest on the Bonds could become includible in gross

income for purposes of federal income taxation, retroactive to the date the Bonds were issued, as a result of future acts or omissions of the City in violation of its covenants in the Bond Ordinance. Should such an event of taxability occur, the Bonds are not subject to any special redemption.

There are or may be pending in the Congress of the United States (“Congress”) legislative proposals relating to the federal tax treatment of interest on the Bonds, including some that carry retroactive effective dates, that, if enacted, could affect the market value of the Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or whether, if enacted, it would apply to Bonds issued prior to enactment. Finally, reduction or elimination of the tax-exempt status of obligations such as the Bonds could have an adverse effect on the City’s ability to access the capital markets to finance future capital or operational needs by reducing market demand for such obligations or materially increasing borrowing costs of the City.

The tax-exempt bond bond office of the Internal Revenue Service (the “Service”) is conducting audits of tax-exempt bonds, both compliance checks and full audits, with increasing frequency to determine whether, in the view of the Service, interest on such tax-exempt obligations is includible in the gross income of the owners thereof for federal income tax purposes. It cannot be predicted whether the Service will commence any such audit. If an audit is commenced, under current procedures the Service may treat the City as a taxpayer and the Bondholders may have no right to participate in such proceeding. The commencement of an audit with respect to any tax-exempt obligations of the City could adversely affect the market value and liquidity of the Bonds, regardless of the ultimate outcome.

Bankruptcy The rights and remedies of the Bondholders may be limited by and are subject to the provisions of federal bankruptcy laws, to other laws or equitable principles that may affect the enforcement of creditors’ rights, to the exercise of judicial discretion in appropriate cases and to limitations on legal remedies against local governments. The various opinions of counsel to be delivered with respect to the Bonds will be similarly qualified.

THE CITY

The City is located 26 miles north of the Chicago central business district and is one of eight Chicago suburban

communities north of Chicago fronting on Lake Michigan collectively referred to as the “North Shore.” Its contiguous municipal neighbors to the north include Lake Forest and Highwood; to the west are Deerfield and Bannockburn; and to the south are Northbrook and Glencoe. The City’s southern boundary is also the Lake County-Cook County boundary. The population at the 2010 Census was 29,763.

The first settlers came to the area in 1845 and developed two villages, St. Johns and Port Clinton. In 1851, the first railroad tracks were laid (the present commuter rail line), with a depot located just south of Port Clinton and identified as Highland Park, in recognition of the area’s dense woods, ravines, and lakeview bluffs. In 1868, the Highland Park Building Company began planning construction of a village. In 1869, the City of Highland Park (City) was incorporated with a population of 500 and an area slightly less than two square miles, including the St. Johns and Port Clinton areas. By 1891, two of the present four private country clubs in the City had been formed and the City’s reputation as an exclusive residential area had been established. Annexations in the 1922-1926 period increased the City to an area of 12 square miles. After the most recent annexation of a portion of Fort Sheridan, the current area, as measured by the City’s geographical information system, is 12.25 miles.


8

The opening of the Edens Expressway in the 1950’s from Chicago to a termination point in Highland Park, contributed to a 51.9% population increase from 16,808 in 1950 to 25,532 per the 1960 Census, followed by a 26.4% increase to 32,263 per the 1970 Census. Highland Park’s population according to the 2000 Census, as amended, was 30,262, a decrease of 1.0% from the 1990 Census of 30,575 and was 29,763 at the 2010 Census, a decrease of 1.7% from the 2000 Census. The City’s population will be updated this year during the 2020 Census.

The City automatically became a home-rule unit when the 1970 Illinois Constitution was adopted because it had

a population in excess of 25,000. As a home-rule unit, the City has no tax rate or debt limits, nor is it required to conduct a referendum to authorize the issuance of debt or to increase property taxes.

The City celebrated its sesquicentennial anniversary in 2019, with a variety of activities, events, and

commemorative dedications. A time capsule was sealed, only to be opened in year 2069, for the City’s bicentennial celebration. Government Services

The City is governed by a seven-member Council composed of a mayor and six council members elected on an at-large basis for staggered four-year terms. Pursuant to a 1951 referendum, the City operates under the Council-Manager form of government with an appointed City Manager responsible for the administration of policy set by the Mayor and Council, and day-to-day operations of the City. Of the City’s 239 full-time positions, the firefighters, lieutenants, battalion chiefs, police officers, police sergeants, and selected public works employees are represented by collective bargaining agreements. Contracts with the firefighters, police sergeants, and selected public works employees runs through 2021 and the contract with the police officers runs through 2020.

The City has 25 facilities including parking decks, a water tower, and various structures. The fire department

operates from three fire stations, each of which has paramedics on duty with mobile intensive care units/ambulances. All firefighters are cross-trained as paramedics and fire apparatus are equipped with first advanced life support equipment. The City’s fire department is one of only 266 departments worldwide and one of 14 in the State of Illinois to receive accreditation from the Commission on Fire Accreditation International and currently holds a class four fire insurance rating.

The police department is structured to enable response to emergency calls anywhere in the City within three minutes. The police department is one of 43 departments in the State of Illinois accredited by the Commission on Accreditation for Law Enforcement Agencies (CALEA). A boat is available for emergency use at all times. All uniformed police officers are trained to the level of first responders. The cable television system serving the City has two-way signal availability.

The City funds a significant list of special social service activities for its senior residents, operating a senior

center featuring educational, cultural and social activities.

The Highland Park Public Library is a component unit of the City, administered by a nine-person Library Board appointed by the Mayor. The Library has approximately 697,000 volumes in circulation, consisting of 385,000 volumes, 72,000 audio recordings, 240,000 DVDs and videos. The number of current card holders is approximately 25,000. The Library is available to active duty military personnel and families.


9

The Highland Park Housing Associations (Association) is a component unit of the City, under the leadership of the City’s Housing Commission. The Housing Commission, through three separate not-for-profit corporations operates three affordable housing rental developments. On behalf of the commission, a private management firm manages the units in the three residences. Additionally, the Housing Commission owns 14 units in a 60-unit condominium development, through an association, which are maintained as rental units for seniors. A deed restriction, which runs with all of the units, assures that the units will remain affordable for succeeding buyers and renters. The 14 rental units are managed by a not-for-profit housing organization.

The City operates a fixed-route scheduled bus service, the Ravinia Festival Park-n-Ride bus program, and a

free Connector shuttle bus operation. The City operates the fixed-route and Park-n-Ride programs under a direct subsidy agreement with the Suburban Bus Division (PACE) of the Regional Transportation Authority. West Deerfield Township subsidizes a cab ride anywhere in the Township, for senior citizens not near a bus route. Moraine Township operates a door-to-door van program for seniors and disabled residents. City Water System

The City draws water from Lake Michigan and is the sole source of supply for Highland Park, the adjacent Villages of Deerfield (2010 population of 18,225), Bannockburn (2010 population of 1,583), Lincolnshire (2010 population of 7,275) and the Glenbrook Sanitary District. The City has the capability to provide water, on an emergency basis, to Northbrook, Glencoe, Highwood and Lake Forest.

The City’s water service area, including the City, is approximately 23 square miles and serves approximately 60,000 people. The service area includes some residential areas and growing office/commercial developments, the latter primarily in Deerfield and Lincolnshire. Overall, City water plant can supply potable water to approximately 120,000 residents.

Education

The school districts serving Highland Park are independent units of government, not under the authority of the City. The majority of City residents are served by North Shore School District 112 (NSSD 112). Bannockburn School District 106 and Deerfield Public School District 109 also serve City residents. Township High School District 113 (THSD 113) provides secondary education for City resident children. NSSD 112 enrollment is approximately 3,960. THSD 113 enrollment is approximately 3,680. Higher education is provided by the College of Lake County, which is a two-year community college with enrollment of approximately 15,000. City residents have access to public and private colleges and universities in the Chicago metropolitan area. Recreation and Community Services

The Park District of Highland Park is an independent unit of government, not under the authority of the City, providing City recreational facilities. An extensive array of public facilities, on over 700 acres of land in 44 park areas, feature an outdoor aqua park, five miles of Lake Michigan beaches; a boat launch ramp; an 18-hole public golf course (Sunset Valley Golf Course); a miniature golf course; a driving range; an indoor ice skating rink; and an indoor tennis/racquetball facility.

The Highland Park Country Club (HPCC) was acquired by the City in 1993. The HPCC former golf course

grounds were sold to the Park District in 2018 to be redeveloped into passive recreational areas. The City retained the HPCC building and continues to offer banquet services. Future building upgrades are planned for accommodating Senior Center relocation to this building in 2022.


10

There are four private golf courses in the City, including the Northmoor, Bob O-Link, Exmoor and Old Elm

courses. The 18-hole Sunset Valley Golf Club owned by the Park District of Highland Park is a public course.

Ravinia Festival is the oldest and most programmatically diverse music festival in the country, presenting over 140 separate events from June through September, including a wide array of classical and popular music. Ravinia has three distinct concert venues: The Pavilion, which seats 3,400; the Martin Theatre, a 850-seat, arts-and-crafts chamber hall that dates back to Ravinia’s original 1904 construction; and the state-of-the-art, 450-seat Bennett Gordon Hall, home to Ravinia’s Steans Music Institute which is on an on-campus conservatory. Bennett Gordon Hall presents approximately 12 indoor concerts between October and May. There is also a lawn, where up to 12,500 ticket-buyers can enjoy music under the stars. Ravinia features a full-service Dining Pavilion and food carts throughout the park. Ravinia offers a variety of educational programs under the umbrella REACH*TEACH*PLAY serving 85,000 people in Cook and Lake counties annually. As a not-for-profit, approximately 60% of the annual funding to run Ravinia is raised through ticket sales. The other 40% comes from private donations. Ravinia pays for the City services it uses, such as police staffing at concerts, and donates five percent of ticket revenues to the City of Highland Park each year.

Located in adjacent Village of Glencoe on 385 acres, the Chicago Botanic Garden serves the adjoining

communities and the North Shore area. Over 1,000,000 people visit the Botanic Garden annually. It received museum accreditation from the American Association of Museums in 1986 and is a member of the Association of Science-Technology Centers. It is the only major botanic garden in Northern Illinois. It is open all year, seven days a week for jogging and hiking and seasonal floral displays.

Highland Park Hospital, which is located in the City, is a not-for-profit corporation whose parent corporation,

Northshore University HealthSystem, also owns a 30,000 square foot medical office building at the hospital complex and two immediate care centers in nearby communities. The hospital is a 139 bed full service hospital and currently employs approximately 1,200 people. The medical staff numbers approximately 465. Highland Park Hospital is a founding member of the Northwest Health Care Network, which includes Lurie Children’s Hospital, Evanston Hospital Corporation and Northwestern Memorial Hospital. The hospital provides medical care and services for the residents of the City as well as Lake County and northern Cook County. The hospital has nearly completed a multiyear, multimillion dollar transformation. In addition to the medical office building, an ambulatory care center and two new parking structures, including a four level structure, have been completed. The Hospital added a new two-story Surgical Pavilion and an exclusive entrance to the maternity services area. The improvements included renovation of facilities and installation of state of the art equipment in clinical departments in the Hospital, including Surgical Suite and support areas, Ambulatory Surgery, Radiology and Sterile Processing Department. The Hospital’s transformation continues during 2017-2018 with new services and facilities to include: Women’s Center improvements, new radiology suites, enhanced cardiac and psychiatric services, emergency department improvements and a new inpatient unit. Historic Preservation

The City is empowered to designate local historic landmarks by a locally adopted preservation ordinance. This local landmark designation affords properties more protection than the State or National programs. Once a property is locally designated, any exterior alteration, construction, demolition or removal requiring a building permit is reviewed by the Highland Park Historic Preservation Commission (the “Commission”).

The City has a wealth of historically and culturally significant properties, with 152 individual properties and

four historic districts listed on the National Register. To date, 132 properties have been designated as local landmarks. The City strives to preserve its distinctive historic, architectural, and landscape characteristics. Most of the significant properties which have been identified in the City are located east of the Skokie Road Corridor. In addition to landmarking single-family homes, the Commission has recognized the City’s water tower, several parks, a school, a fountain, a log cabin, and the Ravinia Festival grounds. The City strives to preserve its distinctive historic, architectural and landscape characteristics.


11

Arts and Human Services

The City has an active arts community, in part, due to its ongoing support for the arts and its acquisition and maintenance of a $1.9 million 21-piece public art collection. The City added a new piece in 2019 named “Ingress”, which was installed in the park located at the intersection of Deerfield Rd., Hickory St., and Laurel Ave. to commemorate the City’s Sesquicentennial Anniversary. Additional public art is owned by the Park District, the Public Library, and private owners. The City supports the arts by subsidizing a grant program and through collaboration with The Art Center – Highland Park and local arts organizations to promote and recognize Highland Park art and artists. City Council approved the Cultural Arts Strategic Plan in 2015, providing direction to the City for the promotion and enhancement of the arts as a matter of City practice and throughout the community as a whole.

The City is dedicated to providing human services for residents of all ages. Since 1976, the City has operated a Senior Center, serving the City’s senior population with health, recreational, cultural, educational, and counseling services. The City is home to multiple human services organizations with missions to help improve the lives of residents in need of services. Socioeconomic Information

While primarily a residential community, the City has three main commercial areas: the Central Business District (CBD), the Skokie Road Corridor and the Ravinia Business District. Sales tax receipts provide 18% of City revenue.

The City has always had a thriving downtown business district. The City has utilized tax increment financing

(TIF) districts to fund public improvements, including utility, street, streetscape, and infrastructure improvements in the Skokie Road Corridor District and the Ravinia Business District. The Ravinia TIF is on-going. In 2017, the City established the Briergate Business District TIF to support the cost of infrastructure improvements for the Briergate area in conjunction with funds collected for this purpose through Special Service Areas (SSA) #18. Future improvements could include curb, gutter, storm sewers, lighting, streetscape, and parking.

The City has three SSAs for attracting and promoting business. An SSA is an economic development

mechanism to provide for funding from property owners for a wide range of special or additional services and/or physical improvements in a defined geographic area. The City’s SSAs are located in the CBD, Ravinia and Briergate Business Districts. While the Briergate SSA primarily funds infrastructure improvements, the Ravinia District and CBD SSA fund marketing, events, and beautification. The CBD SSA is administered by the Downtown Highland Park Alliance.

The City works to attract and retain businesses through a variety of incentives. The City’s Sales Tax Rebate

Program assists new businesses investing a minimum $250,000 in capital investment and generating a minimum $1,000,000 in annual sales tax dollars or existing businesses investing a minimum $75,000 in capital improvements and generating a minimum $1,000,000 in annual sales tax dollars. The City’s Small Business Façade Improvement Program provides financial incentive to property owners and local businesses for improving the look and functionality of their property or business.

The City is home to a variety of events such as the Ravinia Farmers Market, Food Truck Thursdays, the

Annual Arbor Day Celebration, Independence Day festivities, an annual holiday tree lighting event, Port Clinton Art Festival, and the Chamber Sidewalk Sale, which offer fun opportunities for residents and visitors to attend family-friendly events within the City’s business districts. Such events are strategically located to build awareness of City businesses and to generate foot traffic. The City hosts an annual Business Summit, bringing business leaders together to provide updates on City activities, seek feedback, and provide networking.


12

SOCIOECONOMIC INFORMATION Overview

While primarily a residential community, the City’s business base has experienced growth. There are three main commercial areas in the City, the central business district, activity along the “Skokie Road Corridor,” and the small Ravinia business district. The Skokie Road Corridor has several car dealerships, the Crossroads Shopping Center, and other commercial businesses. In 2016, three existing car dealerships (Porsche, Audi and Lexus) in the Skokie Road Corridor expanded their sales and services centers. The City estimates that approximately 70% of its sales tax receipts come from the Skokie Road Corridor and approximately 20% from the central business area.

The City has established several Tax Increment Redevelopment Project Areas (“RPA’s”) to encourage redevelopment of certain sites for more market oriented commercial uses of the properties that will enhance their value and improve their contributions to the City and its surrounding areas. As part of the redevelopment plans, the City has made significant improvements to utilities, public parking, intersections, and traffic signalization, streets and landscaping. The redevelopment plans also include site preparation, land acquisition and assembly, and demolition/clearance The Central Business District (the “CBD”) was the focus of significant City attention and development during the 1980’s. In 1981 the CBD Tax Increment District (the “TIF District”) was created, encompassing approximately 120 acres and covering the entire central business area. The City constructed and owns a plaza and an underground, two-level municipal garage in 1983. Private developers constructed two office/retail and retail/residential buildings on the same site. Additional private development occurred in the TIF District, including construction of a large apartment complex, a major bank facility expansion and various, major new retail projects.

Renaissance Place is a development within the Central Business District. This development encompasses almost an entire block within the CBD (approximately 217,801 square feet or 4.48 acres) consisting of retail stores, including Pottery Barn, Williams Sonoma, Starbucks, L’Occitane, and several others. In addition, Renaissance Place includes office space (43,095 square feet), restaurant space (up to 15,077 square feet), 30 rental apartments, fine arts theaters (16,500 square feet), surface and underground parking consisting of 528 spaces. In 2013, Renaissance Place renovated its landmark theatre to include modern amenities such as a full service bar and concessions.

In July of 2005, the City created a TIF district in the Ravinia Business District, to foster redevelopment and strategic improvements along Roger Williams Avenue, in southern Highland Park. The Ravinia TIF improvements are on a pay-as-you-go basis, including street and related infrastructure improvements, streetscape improvements and a utility adequacy study. In December of 2017, the City created a TIF district along the Skokie Road Corridor, reflecting a commitment by the City to improve and revitalize the Briergate District, with purpose to encourage private redevelopment and reinvestment by making the public infrastructure investments and other assistance required to support private reinvestment. A portion of the former Fort Sheridan Army installation located on Lake Michigan in northern Highland Park is in the process of redevelopment in accordance with the Fort Sheridan Conceptual Land Use Plan. A total of 551 total dwelling units consisting of single family and multi-family housing units are included in the development. Of these, 75 buildings were listed on the Federal Register of Historic Places and are being converted into residences. The Fort Sheridan Local Redevelopment Authority and the Fort Sheridan Joint Planning Commission (represented by members from both Highland Park and Highwood) have provided assistance in coordinating planning efforts in order to ensure a smooth transition in the annexation of former unincorporated land and conversion of non-taxable properties onto City tax rolls. The Navy (southeast section) and the Army Reserves (southwest section) are using the remaining portion of Fort Sheridan.


13

Employment

The City is primarily residential in character, with a few significant employers. Employment opportunities in neighboring towns are significant, as are opportunities throughout the Chicago metropolitan area. Following are large employers located in the City and in immediately surrounding communities.

Major City Employers(1)

Approximate

Name Product/Service Employment

Highland Park Hospital ........................................ General Hospital ......................................... 1,200

Ravinia Festival .............................................. Music Festival ........................................... 690(2)

Township High School District No. 113 ......................... High School District ..................................... 603

North Suburban Special Education District ..................... Special Education District ............................... 595

North Shore School District No. 112 ........................... Elementary School District ............................... 580

City of Highland Park ......................................... Government Services ...................................... 234

First Bank of Highland Park ................................... Community Bank ........................................... 103

Dick Blick Holdings ........................................... Distributor of Arts and Craft Supplies ................... 100

Highland Park Public Library .................................. Public Library ........................................... 98(2)

Highland Park Post Office ..................................... Post Office .............................................. 85(2)

Notes: (1) Source: the 2019 Illinois Manufacturers Directory, the 2019 Illinois Services Directory, and City records. The data in

this table was obtained prior to the outbreak of COVID-19. The COVID-19 pandemic, and the response thereto, has

negatively impacted businesses throughout the State and may have had an adverse impact on these employers. The City

makes no prediction as to the effect of COVID-19 on the information set forth in this table. See “RISK FACTORS -

Potential Impact of the Novel Coronavirus 2019” herein.

(2) Includes full and part time employees.

Major Area Employers(1)

Approximate

Location Name Product/Service Employment

North Chicago ....... Great Lakes Naval Training Center ........... Department of the Navy .................................... 11,000(2)

Deerfield ........... Walgreens Boots Alliance .................... Holding Company ........................................... 6,500

North Chicago ....... AbbVie, Inc. ............................... Pharmaceutical Manufacturing .............................. 3,400

Riverwoods .......... Discover Financial Services, LLC ............ Company Headquarters and Financial Services ............... 3,000

Deerfield ........... Walgreen Company ........................... Drug Stores Corporate Office .............................. 2,500

Vernon Hills ........ Hawthorn Shopping Center .................... Shopping Center ........................................... 2,500

Waukegan ............ Lake County ................................ Government ................................................ 2,345

Libertyville ........ Advocate Condell Medical Center ............. Acute Care Hospital & Health Network ...................... 2,200

Multiple ............ W. W. Grainger, Inc......................... Corporate headquarters and Wholesaler of

Industrial Equipment and Supplies ........................ 2,031

Grayslake ........... College of Lake County...................... Community College ......................................... 1,818

Deerfield ........... Baxter Healthcare Corp. ..................... Medical and Hospital Equipment ............................ 1,700

Lincolnshire ........ HydraForce, Inc. ........................... Hydraulic Valves .......................................... 1,100

Deerfield ........... Takeda Pharmaceuticals North America, Inc. .. Corporate Headquarters and Pharmaceutical Preparations .... 1,000

Mundelein ........... Medline Industries, Inc. .................... Medical Products and Garments ............................. 900

Lincolnshire ........ Zebra Technologies ......................... Company Headquarters and Bar Code Label, Card and

Receipt Printers ......................................... 900

Lake Bluff .......... Mariani Landscape .......................... Landscape Design and Building Maintenance ................. 764

North Chicago ....... Abbott Laboratories, Inc. ................... Medical Diagnostic Products ............................... 500

Vernon Hills ........ American Hotel Register Co. ................. Hotel Hospitality Supply Sales and Distribution ........... 500

Libertyville ........ Hollister Incorporated...................... Corporate Headquarters and Health Care Products ........... 400

Vernon Hills ........ Mitsubishi Electric Automation, Inc. ........ Programmable Electronic Components ........................ 400

Notes: (1) Source: 2019 Illinois Manufacturers Directory and the 2019 Illinois Services Directory. The COVID-19 pandemic, and the

response thereto, has negatively impacted businesses throughout the State and may have had an adverse impact on these

employers. The City makes no prediction as to the effect of COVID-19 on the information set forth in this table. See

“RISK FACTORS - Potential Impact of the Novel Coronavirus 2019” herein.

(2) Includes civilian and military personnel.


14

The following tables show employment by industry and by occupation for the City, Lake County (the

“County”) and the State as reported by the U.S. Census Bureau 2014-2018 American Community Survey 5-year estimated values.

Employment By Industry(1)

The City The County The State

Classification Number Percent Number Percent Number Percent

Agriculture, Forestry, Fishing and Hunting, and Mining ....... 0 0.0% 1,018 0.3% 66,259 1.1%

Construction ................................................. 421 2.9% 17,189 4.9% 328,620 5.3%

Manufacturing ................................................ 1,101 7.6% 56,828 16.2% 753,276 12.1%

Wholesale Trade .............................................. 601 4.1% 15,671 4.5% 188,536 3.0%

Retail Trade ................................................. 1,264 8.7% 41,048 11.7% 669,968 10.8%

Transportation and Warehousing, and Utilities ................ 151 1.0% 13,594 3.9% 394,511 6.3%

Information .................................................. 265 1.8% 6,214 1.8% 120,002 1.9%

Finance and Insurance, and Real Estate

and Rental and Leasing ...................................... 2,016 13.9% 27,642 7.9% 453,391 7.3%

Professional, Scientific, and Management, Administrative,

and Waste Management Services ............................... 3,121 21.5% 50,622 14.4% 735,339 11.8%

Educational Services and Health Care and Social Assistance ... 3,590 24.7% 67,233 19.2% 1,426,656 22.9%

Arts, Entertainment and Recreation and Accommodation

and Food Services ........................................... 1,124 7.7% 30,193 8.6% 568,457 9.1%

Other Services, Except Public Administration ................. 686 4.7% 14,768 4.2% 294,078 4.7%

Public Administration ........................................ 202 1.4% 8,711 2.5% 226,871 3.6%

Total ...................................................... 14,542 100.0% 350,731 100.0% 6,225,964 100.0%

Note: (1) Source: U.S. Bureau of the Census, American Community Survey 5-year estimates 2014 to 2018.

Employment By Occupation(1)


Classification Number Percent Number Percent Number Percent

Management, Business, Science, and Art ....................... 9,359 64.4% 150,074 42.8% 2,370,095 38.1%

Service ...................................................... 1,467 10.1% 53,519 15.3% 1,072,423 17.2%

Sales and Office ............................................. 2,974 20.5% 81,871 23.3% 1,393,893 22.4%

Natural Resources, Construction, and Maintenance ............. 292 2.0% 21,104 6.0% 448,917 7.2%

Production, Transportation, and Material Moving ............. 450 3.1% 44,163 12.6% 940,636 15.1%

Total ...................................................... 14,542 100.0% 350,731 100.0% 6,225,964 100.0%


Unemployment rates for the City are well below the County and the State levels, as shown below.

Annual Average Unemployment Rates(1)

Calendar The The The

Year City County State

2010 ............................ 6.7% 10.5% 10.3%

2011 ............................ 6.3% 9.4% 9.8%

2012 ............................ 6.0% 8.7% 8.9%

2013 ............................ 6.3% 8.7% 9.2%

2014 ............................ 5.0% 6.5% 7.1%

2015 ............................ 4.3% 5.1% 5.3%

2016 ............................ 4.2% 5.2% 5.9%

2017 ............................ 3.5% 4.6% 4.9%

2018 ............................ 3.5% 4.5% 4.3%

2019 ............................ 3.0% 4.1% 4.0%

Note: (1) Source: Illinois Department of Employment Security.


15

Housing The U.S. Census Bureau 5-year estimated values reported that the median value of the City’s owner-occupied

homes was $575,800. This compares to $259,900 for the County and $187,200 for the State. The following table represents the five year average market value of specified owner-occupied units for the City, the County and the State at the time of the 2014-2018 American Community Survey.

Home Values(1)


Value Number Percent Number Percent Number Percent

Under $50,000 ...................... 76 0.8% 5,513 3.1% 214,345 6.7%

$50,000 to $99,999 ................. 44 0.5% 13,038 7.3% 476,898 15.0%

$100,000 to $149,999 ............... 110 1.1% 22,055 12.3% 499,362 15.7%

$150,000 to $199,999 ............... 193 2.0% 26,132 14.6% 513,220 16.1%

$200,000 to $299,999 ............... 745 7.7% 36,622 20.4% 668,842 21.0%

$300,000 to $499,999 ............... 2,799 29.1% 39,166 21.8% 537,360 16.9%

$500,000 to $999,999 ............... 4,221 43.9% 30,309 16.9% 223,197 7.0%

$1,000,000 or more ................. 1,431 14.9% 6,638 3.7% 55,811 1.8%

Total ............................ 9,619 100.0% 179,473 100.0% 3,189,035 100.0%


Mortgage Status(1)


Number Percent Number Percent Number Percent

Housing Units with a Mortgage ...... 6,276 65.2% 123,327 68.7% 2,034,106 63.8%

Housing Units Without a Mortgage ... 3,343 34.8% 56,146 31.3% 1,154,929 36.2%

Total ............................ 9,619 100.0% 179,473 100.0% 3,189,035 100.0%


Income

Per Capita Personal Income

for the Highest Income Counties in the State(1)

Rank County 2014-2018

1 ..................... Lake County ................. $44,287

2 ...................... DuPage County ............... 43,982

speerfinancial.comspeerfinancial.com/pdf/highland park - 2020 pos.pdf · 2020-06-24 · new issue...

Documents