[Congressional Record Volume 164, Number 156 (Thursday, September 20, 2018)]
[Extensions of Remarks]
[Page E1269]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       LAKE FOREST DEBT FREE DAY

                                 ______
                                 

                           HON. MIMI WALTERS

                             of california

                    in the house of representatives

                      Thursday, September 20, 2018

  Mrs. MIMI WALTERS of California. Mr. Speaker, I rise today in 
recognition of the City of Lake Forest, California, located in my 
congressional district.
  On October 2, 2018, the Lake Forest City Council will notify 
bondholders that the city intends to make an early repayment of a $7 
million bond, the city's only outstanding debt. The debt will be paid 
in full by December 2, 2018.
  By repaying the debt early, Lake Forest will save approximately $1 
million. Those savings will allow the City to allocate additional 
resources toward various funds, such as transportation improvement 
funds and the General Fund.
  Lake Forest is the largest of three cities that has zero outstanding 
debt liability and is current in its pension payments within the 
California Public Employees' Retirement System (CalPERS).
  Following its incorporation in 1991, Lake Forest adopted a 
conservative fiscal management approach resulting in the substantial 
financial security the City enjoys today.
  For example, Lake Forest contracts for police and fire services, and 
landscape and street maintenance, and rents office space for City Hall 
rather than issuing debt to build a Civic Center.
  Further, Lake Forest relies on property and sales taxes to fund its 
budget, rather than relying on specialty taxes like automobile sales or 
hotel taxes, which can be unreliable sources of income.
  A stable income base coupled with conservative spending practices 
allow Lake Forest to maintain a balanced budget and be debt-free.
  Again, I would like to congratulate Lake Forest on this achievement 
and applaud its fiscal responsibility.

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