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Joint Review Board Packet 2012 11-27-12 NOTICE OF ANNUAL MEETING OF JOINT REVIEW BOARD Kendall Township Kendall County 9513 Walker Road 111 West Fox Street Yorkville,Illinois 60560 Yorkville,Illinois 60560 Waubonsee Community College Dist.#516 Yorkville School District#115 Route 47 at Waubonsee Drive 602 Center Parkway,#A Sugar Grove,Illinois 60554 Yorkville,Illinois 60560 Bristol-Kendall Fire Protection District United City of Yorkville 103 East Beaver Street 800 Game Farm Road Yorkville,Illinois 60560 Yorkville,Illinois 60560 Bristol Township Kendall County Forest Preserve 9075 Corneils 110 W Madison Street Bristol,Illinois 60512 Yorkville,Illinois 60560 YOU ARE HEREBY NOTIFIED that a meeting of the annual Joint Review Board(s)to review the annual reports for the Fox Industrial Park,US Route 34/IL Route 47 Countryside Shopping Center and Downtown Tax Increment Financing Redevelopment Project Areas will be convened November 27,2012 at 3:00 p.m. at the United City of Yorkville,City Hall,800 Game Farm Road,Yorkville,Illinois 60560. PLEASE BE ADVISED that the Joint Review Board(s)shall elect or re-elect a public member as well as a chairperson. In accordance with the provisions of the Tax Increment Allocation Redevelopment Act(the"Act')(65 ILCS 5/11-74.1-1,et seq.),the Joint Review Board(s)shall review the annual report(s)for the Fox Industrial Park, US Route 34/IL Route 47 Countryside Shopping Center and Downtown Redevelopment Project Areas. Is/Beth Warren,City Clerk AGENDA ANNUAL JOINT REVIEW BOARD OF THE UNITED CITY OF YORKVILLE FOR THE FOX INDUSTRIAL,US RTE 34&IL RTE 47 COUNTRYSIDE AND DOWNTOWN REDEVELOPMENT PROJECT AREAS November 27,2012 United City of Yorkville, City Hall 3:00 p.m. 800 Game Farm Road, Yorkville,Illinois 1. Roll Call United City of Yorkville Kendall Township Kendall County Kendall County Forest Preserve Waubonsee Community College Dist.#516 Yorkville School Dist#115 Bristol-Kendall Fire Protection District Bristol Township 2. Call Meeting To Order 3. Motion to elect or re-elect Public Member 4. Motion to elect or re-elect Chairperson 5. Minutes for Approval 6. Review of Annual Report for Fox Industrial,US Rte 34&IL Rte 47 Countryside and Downtown Redevelopment Project Areas 7. Discussion 8. Adjournment Table of Contents Minutes of the FYE 2011 Joint Review Board.........................................................................................1 FoxIndustrial Park TIF Report................................................................................................................4 Certification of Chief Executive Officer................................................................................................. 15 LegalCouncil Opinion............................................................................................................................ 16 ActivitiesStatement................................................................................................................................ 17 Audited Financial Statements................................................................................................................. 18 AuditorCompliance Letter.....................................................................................................................25 US Route 34 & IL Route 47 (Countryside) TIF Report........................................................................26 Certification of Chief Executive Officer.................................................................................................37 LegalCouncil Opinion............................................................................................................................38 ActivitiesStatement................................................................................................................................39 Audited Financial Statements.................................................................................................................40 AuditorCompliance Letter.....................................................................................................................47 DowntownTIF Report.............................................................................................................................48 Certification of Chief Executive Officer.................................................................................................59 LegalCouncil Opinion............................................................................................................................60 ActivitiesStatement................................................................................................................................61 Audited Financial Statements.................................................................................................................62 AuditorCompliance Letter.....................................................................................................................69 Attachment H Fiscal Year 2011 Meeting of the Joint Review Board Tuesday, October 26, 2011 1:30 p.m. Yorkville City Hall Conference Room 800 Game Farm Road, Yorkville, IL 60560 Board Members in Attendance: Jacqui Parisi, Business Manager—Yorkville CUSD 115 John Sterrett—Kendall County Associate Planner, Building and Zoning Dept. Tom Lindblom, Deputy Fire Chief—Bristol Kendall Fire Department City Officials in Attendance: Bart Olson, City Administrator-United City of Yorkville Krysti Barksdale-Noble, Community Development Director- United City of Yorkville Rob Fredrickson, Finance Director-United City of Yorkville Kathleen Field Orr, City Attorney—Kathleen Field Orr&Associates Other Attendees: Lynn Dubajic, Executive Director-YEDC Tony Scott, Reporter—Kendall Record Butch Konicek—Plano resident Elect Public Member Bart Olson, City Administrator of the United City of Yorkville—unanimously elected Elect Chair Person Krysti Barksdale-Noble, Community Development Director of the United City of Yorkville— unanimously elected Ms. Noble opened the annual meeting by asking for approval of the minutes from the last meeting (March 22, 2011). The minutes were approved"as is"unanimously. Annual Report for the Fox Industrial TIF: City Attorney, Kathleen Field Orr, told the group that the Fox Industrial Park TIF would be liquidated by the end of this year. The City Council approved the TIF in May of 2001 to help repair streets and other infrastructure in the aging industrial park. Mr. Fredrickson summarized that the fund balance (as of Fiscal Year End April 30, 2011)was $569,790. Of this amount, $155,346 is reserved to pay the remaining debt service on the 2002 bonds; $20,000 is reserved for signage; and approximately $15,000 will be reserved for administrative costs associated with the proposed TIF closing. 1 Two ordinances were handed out relating to the Fox Industrial TIF. The first proposed ordinance will declare a surplus for the Fox Industrial TIF, in which the City will turn over surplus proceeds to the County, and the County will disseminate the proceeds back to the taxing districts. As to the timing on when the taxing districts will receive this surplus, Mr. Fredrickson stated that he did not know, but is waiting for an answer from the County Treasurer. The second proposed ordinance would dissolve the TIF, effective December 31, 2011. Mr. Lindblom asked when the City will get the money for the County. Ms. Orr stated that typically all redevelopment project costs must be paid before you can close out a TIF. However, in this instance there is enough money to make a provision for final payment of any outstanding costs. Currently there are two outstanding items: a sign that the City has to pay for and final debt service payments for the 2002 bond. Because these provisions can be made, Ms. Orr stated that there is no reason to hold off the closing of this TIF. Ms. Orr further explained that the ordinances that were being distributed are on the agenda tonight for the City Council meeting. Under the assumption that the City Council passes these ordinances, Mr. Fredrickson is prepared to issue a surplus check tomorrow and get it to the County. Both Ms. Orr and Mr. Fredrickson have left questions for the County Clerk and Treasurer as to when the surplus will be distributed, and will let the other taxing districts know pending a response from the County. Ms. Orr went on to say that this would be the first of two surpluses for the Fox Industrial TIF,because in 2012 after receiving the 2011 taxes, the City would authorize a second declaration of surplus to remit any remaining proceeds back to the taxing districts via the County Treasurer. She concluded by stating that for your next levy, i.e. 2012,there will be no Fox Industrial TIF. Ms. Parisi asked when the last debt service payments would be due. Mr. Fredrickson said there is a interest payment due on June 30, 2012; and a final interest and principle payment due on December 30, 2012. Annual Report for the Countryside TIF Mr. Fredrickson referenced page 24 in the TIF packet to show the current(as of April 30, 2011) fund balance amount of$2,178,550. This entire amount is reserved for debt service. The outstanding balance on the bonds is currently $3.19 million, which leaves a deficit of a little over $1 million. Annual Report for the Downtown TIF Mr. Fredrickson stated ending fund balance for fiscal year 2011 was $209,760. Of this amount $200,000 is reserved for the IL Route 47 Expansion Project, which is scheduled to begin next spring. This project will start just south of Kennedy Road and continue until its intersection with IL Route 71, which will encompass the Downtown TIF area. He added that in fiscal year 2011 this TIF had a property tax allotment of approximately $75,000, which was added to fund balance. 2 Ms. Noble asked if there were any other items to discuss or any questions about the TIF's. Ms. Orr added that the law prescribes when you are going to dissolve a TIF, taxing districts have to be given notice in November of the year that it happens so you can start planning for the dollars and cents we just explained. The City will be sending copies of the ordinances dissolving the TIF and the declaration of surplus to each of the taxing districts, which will go out after passage of the ordinances. Ms. Orr concluded by stating that she believes the City has given the taxing districts adequate notice of the dissolution of the TIF, pursuant to State Statute. Ms. Noble then asked for a motion to adjourn; it was seconded; and the meeting adjourned at 1:50 p.m. Minutes respectfully submitted by: Bonnie Olsem 3 Fox Industrial TIF District FY 2012 ANNUAL TAX INCREMENT FINANCE E� :. STATE OF ILLINOIS REPORT COMPTROLLER .:17 ,.°` JUDY BAAR TOPINKA FINAL REPORT Name of Municipality: United City of Yorkville Reporting Fiscal Year: 2012 County: Kendall Fiscal Year End: 04130 /2012 Unit Code: 047/035/30 . TIC�►t�mir�iSt�'atia�Gontact:ln#gtrna#ion First Name: Rob Last Name: Fredrickson Address: 800 Game Farm Road Title: Finance Director Telephone: 630-553-8534 City: Yorkville Zip: 60560 E-Mail: rfredrickson @yorkville.il.us attest to the best of my knowledge, this report of the redevelopment project areas in: City of Yorkville, Illinois is complete and accurate at the end of this reporting Fiscal year under the Tax Increment Allocation Redevelopment Act [65 ILCS 5111-74.4-3 et. seq.] Or the Industrial Jobs Recovery Law[65 ILCS 5111-74.6-10 et. seq.] Written signature of TIF Administrator Date Section 1 (65 ILCS 5111-74.4-5 d) 1.5 and 65 ILCS 5111-74.6-22 (d) (1.5 F1LL:4UT:ONE. R.EACH.'::1F:DISTICT Name of Redevelopment Project Area Date Designated Date Terminated United City of Yorkville Tax Increment Financing Redevelopment Project Area- Fox Industrial Park 5/10/2001 12/31/2011 *All statutory citations refer to one of two sections of the Illinois Municipal Code: the Tax Increment Allocation Redevelopment Act [65 ILCS 5111-74.4-3 et. seq.]or the Industrial Jobs Recovery Law[65 ILCS 5111-74.6-10 et. seq.] FY 2012 TIF Name: Fox Industrial 4 SECTION 2 [Sections 2 through 5 must be completed foreach redevelopment project area listed in Section 1.] Name of Redevelopment Project Area: Fox Industrial Park Area Primary Use of Redevelopment Project Area*: Industrial If"Combination/Mixed" List Component Types: Under which section of the Illinois Municipal Code was Redevelopment Project Area designated?(check one): Tax Increment Allocation Redevelopment Act X Industrial Jobs Recovery Law No Yes Were there any amendments to the redevelopment plan, the redevelopment project area, or the State Sales Tax Boundary? [65 ILCS 5/11-74.4-5(d)(1)and 5/11-74.6-22 (d)(1)] If yes, please enclose the amendment labeled Attachment A X Certification of the Chief Executive Officer of the municipality that the municipality has complied with all of the requirements of the Act during the preceding fiscal year. [65 ILCS 5/11-74.4-5 (d) (3) and 5/11- 74.6-22 (d)(3)] Please enclose the CEO Certification labeled Attachment E X Opinion of legal counsel that municipality is in compliance with the Act. [65 ILCS 5/11-74.4-5(d) (4) and 5/11-74.6-22 (d)(4)] Please enclose the Legal Counsel Opinion labeled Attachment C X Were there any activities undertaken in furtherance of the objectives of the redevelopment plan, including any project implemented in the preceding fiscal year and a description of the activities undertaken? [65 ILCS 5/11-74.4-5(d)(7)(A and B)and 5/11-74.6-22 (d)(7)(A and B)] If yes, please enclose the Activities Statement labeled Attachment C X Were any agreements entered into by the municipality with regard to the disposition or redevelopment of any property within the redevelopment project area or the area within the State Sales Tax Boundary?[65 ILCS 5/11-74.4-5 (d)(7)(C)and 5/11-74.6-22 (d)(7)(C)] If yes, please enclose the Agreement(s) labeled Attachment E X Is there additional information on the use of all funds received under this Division and steps taken by the municipality to achieve the objectives of the redevelopment plan? [65 ILCS 5/11-74.4-5 (d) (7) (D) and 5/11-74.6-22 (d)(7)(D)] If yes, please enclose the Additional Information labeled Attachment F X Did the municipality's TIF advisors or consultants enter into contracts with entities or persons that have received or are receiving payments financed by tax increment revenues produced by the same TIF? [65 ILCS 5/11-74.4-5 (d)(7)(E)and 5/11-74.6-22 (d)(7)(E)] If yes, please enclose the contract(s)or description of the contract(s) labeled Attachment G X Were there any reports or meeting minutes submitted to the municipality by the joint review board? [65 ILCS 5/11-74.4-5 (d)(7)(F)and 5/11-74.6-22 (d)(7)(F)] If yes, please enclose the Joint Review Board Report labeled Attachment E X Were any obligations issued by municipality? [65 ILCS 5/11-74.4-5 (d)(8)(A)and 5/11-74.6-22 (d)(8)(A)] If yes, please enclose the Official Statement labeled Attachment X Was analysis prepared by a financial advisor or underwriter setting forth the nature and term of obligation and projected debt service including required reserves and debt coverage? [65 ILCS 5/11-74.4-5 (d) (8) (B)and 5/11-74.6-22 (d)(8)(B)] If yes, please enclose the Analysis labeled Attachment X Cumulatively, have deposits equal or greater than $100,000 been made into the special tax allocation fund?65 ILCS 5/11-74.4-5(d)(2)and 5/11-74.6-22 (d)(2) If yes, please enclose Audited financial statements of the special tax allocation fund labeled Attachment K X Cumulatively, have deposits of incremental revenue equal to or greater than $100,000 been made into the special tax allocation fund?65 ILCS 5/11-74.4-5 (d)(9)and 5/11-74.6-22 (d)(9) If yes, please enclose a certified letter statement reviewing compliance with the Act labeled Attachment L X A list of all intergovernmental agreements in effect in FY 2010,to which the municipality is a part, and an accounting of any money transferred or received by the municipality during that fiscal year pursuant to those intergovernmental agreements. [65 ILCS 5/11-74.4-5(d)(10)] If yes, please enclose list only of the intergovernmental agreements labeled Attachment N X *Types include: Central Business District, Retail, Other Commercial, Industrial, Residential, and Combination/Mixed. FY 2012 TIF Name: Fox Industrial 5 SECTION 3.1 -(65 ILCS 5111-74.4-5(d)(5)and 65 ILCS 5/11-74.6-22 (d) (5)) Provide an analysis of the special tax allocation fund. Reporting Year Cumulative Fund Balance at Beginning of Reporting Period $ 569,790 Revenue/Cash Receipts Deposited in Fund During Reporting FY: % of Total Property Tax Increment $ 259,052 $ 1,357,148 98% State Sales Tax Increment 0% Local Sales Tax Increment 0% State Utility Tax Increment 0% Local Utility Tax Increment 0% Interest $ 275 $ 21,794 2% Land/Building Sale Proceeds 0% Bond Proceeds 0% Transfers from Municipal Sources 0% Private Sources 0% Other(identify source ; if multiple other sources, attach schedule) 0% Total Amount Deposited in Special Tax Allocation Fund During Reporting Period $ 259,327 Cumulative Total Revenues/Cash Receipts $ 1,378,942 100% Total Expenditures/Cash Disbursements(Carried forward from Section 3.2) $ 191,410 Distribution of Surplus $ 637,707 Total Expenditures/Disbursements $ 829,117 NET INCOME/CASH RECEIPTS OVER/(UNDER) CASH DISBURSEMENTS $ (569,790) FUND BALANCE, END OF REPORTING PERIOD $ - - if there is a positive fund balance at the end of the reporting period, you must complete Section 3.3 FY 2012 TIF Name: Fox Industrial 6 SECTION 3.2 A-(65 ILCS 5/11-74.4-5(d)(5)and 65 ILCS 5/11-74.6-22(d)(5); ITEMIZED LIST OF ALL EXPENDITURES FROM THE SPECIAL TAX ALLOCATION FUND (by category of permissible redevelopment cost,amounts expended during reporting period) FOR AMOUNTS>$10,000 SECTION 3.2 B MUST BE COMPLETED Category of Permissible Redevelopment Cost[65 ILCS 5/11-74.4-3(q)and 65 ILCS 5/11-74.6-10(o), Reporting Fiscal Year 1.Costs of studies,administration and professional services—Subsections(q)(1)and o 1 Legal Services 3,034 Auditing Services-TIF Compliance Report 316 Paying Agent Fees 214 Administrative Costs-TIF Closure 21,050 Debt Service Transfer 78,777 $ 103,391 2.Cost of marketing sites—Subsections 1.6 and(o)(1.6) Signage 11,236 $ 11,236 3. Property assembly, demolition, site preparation and environmental site improvement costs. Subsection 2 , (o)(2)and(o)(3) 4. Costs of rehabilitation, reconstruction, repair or remodeling and replacement of existing public buildings.Subsection 3 and(o)(4) 5.Costs of construction of public works and improvements.Subsection q)(4)and(o)(5) 6. Costs of removing contaminants required by environmental laws or rules(o)(6)- Industrial Jobs Recovery TIFs ONLY $ FY 2012 TIF Name: Fox Industrial 7 7. Cost of job training and retraining,including"welfare to work"programs Subsection(q)(5),(0)(7) and (0)(12) 8. Financing costs. Subsection (q)(6)and (0)(8) Principal 70,000 Interest 6,783 $ 76,783 9.Approved capital costs. Subsection(q)(7)and(0)(9) 10. Cost of Reimbursing school districts for their increased costs caused by TI assisted housing projects. Subsection (q)(7.5)-Tax Increment Allocation Redevelopment TIFs ONLY 11. Relocation costs. Subsection(q)(8)and (o)(1 0) 12. Payments in lieu of taxes.Subsection (q)(9)and (o)(1 1) 13. Costs of job training, retraining advanced vocational or career education provided by other taxing bodies.Subsection(q)(10)and(o)(1 2) FY 2012 TIF Name: Fox Industrial 8 14. Costs of reimbursing private developers for interest expenses incurred on approved redevelopment projects. Subsection(q)(1 1 A-E and(o)(1 3 A-E 15. Costs of construction of new housing units for low income and very low-income households. Subsection(q)(1 1 (F)-Tax Increment Allocation Redevelopment TIFs ONLY 16. Cost of day care services and operational costs of day care centers. Subsection (q) (11.5)- Tax Increment Allocation Redevelopment TIFs ONLY $ - TOTAL ITEMIZED EXPENDITURES $ 191,410 FY 2012 TIF Name: Fox Industrial 9 Section 3.2 B List all vendors, including other municipal funds,that were paid in excess of$10,000 during the current reporting year. There were no vendors, including other municipal funds, paid in excess of $10,000 during the current reporting period. Name Service Amount The Bank of New York Paying Agent $ 76,997 UCOY- Debt Service Fund FY 2013 Debt Service PMT'S $ 78,777 UCOY- General Fund Administrative Costs-TIF Closure $ 21,050 Custom Signs Signage $ 11,236 FY 2012 TIF Name: Fox Industrial 10 SECTION 3.3- (65 ILCS 5/11-74.4-5(d) (5) 65 ILCS 11-74.6-22 (d) (5)) Breakdown of the Balance in the Special Tax Allocation Fund At the End of the Reporting Period (65 ILCS 5/11-74.4-5 (d) (5) (D)and 65 ILCS 5/11-74.6-22 (d) (5) (D)) FUND BALANCE, END OF REPORTING PERIOD $ - Amount of Original Issuance Amount Designated 1. Description of Debt Obligations Total Amount Designated for Obligations 2. Description of Project Costs to be Paid Total Amount Designated for Project Costs $ - TOTAL AMOUNT DESIGNATED $ - SURPLUS-/(DEFICIT) $ - * NOTE: If a surplus is calculated, the municipality may be required to repay the amount to overlapping taxing FY 2012 TIF Name: Fox Industrial 11 SECTION 4 [65 ILCS 5/11-74.4-5 (d) (6) and 65 ILCS 5/11-74.6-22 (d) (6)] Provide a description of all property purchased by the municipality during the reporting fiscal year within the redevelopment project area. X No property was acquired by the Municipality Within the Redevelopment Project Area Property Acquired by the Municipality Within the Redevelopment Project Area Property (1): Street address: Approximate size or description of property: Purchase price: Seller of property: Property(2): Street address: Approximate size or description of property: Purchase price: Seller of property: Property(3): Street address: Approximate size or description of property: Purchase price: Seller of property: Property (4): Street address: Approximate size or description of property: Purchase price: Seller of property: FY 2012 TIF Name: Fox Industrial 12 SECTION 5-65 ILCS 5/11-74.4-5(d) (7) (G)and 65 ILCS 5/11-74.6-22 (d) (7) (G) Page 1 If NO projects were undertaken by the Municipality Within the Redevelopment Project Area, indicate X If Projects WERE undertaken by the Municipality Within the Redevelopment Project Area enter the Estimated Investment for Subsequent Fiscal Estimated Cost of 11/1/99 to Date Year the Total Project TOTAL: Private Investment Undertaken (See Instructions) $ 9,000,000 $ - $ 9,000,000 Public Investment Undertaken $ 547,396 $ - $ 547,396 Ratio of Private/Public Investment 1634/77 1634/77 Project 1: Roadway/Curb&Gutter/Storm Sewer Infrastructure Improvements Private Investment Undertaken (See Instructions) $ 9,000,000 $ - $ 9,000,000 Public Investment Undertaken $ 547,396 $ - $ 547,396 Ratio of Private/Public Investment 1634/77 1634/77 Project 2: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 3: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 4: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 5: Private Investment Undertaken See Instructions Public Investment Undertaken Ratio of Private/Public Investment 0 0 FY 2012 TIF Name: Fox Industrial 13 Optional: Information in the following sections is not required by law, but would be helpful in evaluating the performance of TIF in Illinois. SECTION 6 Provide the base EAV (at the time of designation)and the EAV for the year reported for the redevelopment project area Year redevelopment project area was Reporting Fiscal Year designated Base EAV EAV 5/10/2001 $ 2,938,857 $ 5,966,782 List all overlapping tax districts in the redevelopment project area. If overlapping taxing district received a surplus, list the surplus. The overlapping taxing districts did not receive a surplus. Surplus Distributed from redevelopment Overlapping Taxing District project area to overlapping districts United City of Yorkville $ 67,334 Yorkville Public Library $ 19,331 Yorkville CUSD#115 $ 393,915 Waubonsee Community College District#516 $ 30,722 Kendall County $ 47,750 Bristol - Kendall Fire Protection District $ 50,268 Kendall County Forest Preserve $ 7,773 Kendall Township $ 5,814 Kendall Road District $ 14,801 SECTION 7 Provide information about job creation and retention Description and Type Number of Jobs Number of Jobs (Temporary or Retained Created Permanent) of Jobs Total Salaries Paid SECTION 8 Provide a general description of the redevelopment project area using only major boundaries: Optional Documents Enclosed Legal description of redevelopment project area previously provided Map of District previously provided FY 2012 TIF Name: Fox Industrial 14 CEO CIr United City of Yorkville Attachment B 5 800 Game Farm Road Yorkville, Illinois, 60560 o IN Telephone: 630-SS3-4350 CERTIFICATION OF CHIEF EXECUTIVE OFFICER I, Gary J. Golinski, Mayor of the United City of Yorkville, Kendall County, Illinois, certify that the City has complied with all of the requirements of the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1 et seq. during the fiscal year ending April 30, 2012, in connection with the administration of the Fox Industrial Park Area Tax Increment Financing District. r Gary ]. Go ski, Mayor 15 LAW OFFICE KATHLEEN FIELD ORR & ASSOCIATES 53 WEST JACKSON BOULEVARD SUITE 935 CHICAGO, ILLINOIS 60604 (312)382-2113 (3 12)382-2127 facsimile KATHLEEN FIELD ORR JAMES W. BINNINGER kfo @kfoassoc.com jwb cr,kfoassoc.com October 22, 2012 Judy Barr Topinka, State Comptroller State of Illinois Building 100 West Randolph Street Suite 15-500 Chicago, Illinois 60601 Dear Ms. Topinka: I have acted as City Attorney for the United City of Yorkville, Kendall County, Illinois, in connection with the administration of the City's Fox Industrial Park Tax Increment Redevelopment Project Area. I have reviewed all information provided to me by the City staff and, to the best of my knowledge and belief, find that the City has conformed with all of the applicable provisions of the Tax Increment Allocation Redevelopment Act, 65 ILCS 5111-74.4-1, et seq., for the fiscal year ending April 30, 2012. Very truly yours, KATHLEEN FIELD ORR& ASSOCIATES J mes W. Binninger ATTACHMENT C 16 Unit Code 047/035/30 Attachment D Activities Statement Fox Industrial Park Area In 2002 the City issued bonds in the amount of$625,000 to finance certain roadway, curb &gutter, street lighting and storm sewer improvements in the Fox Industrial Park area. These improvements cost approximately$550,000 and were completed in 2002. The remaining bond proceeds were applied towards debt service in subsequent fiscal years. In fiscal year 2012,the TIF district paid$76,783 in debt service costs, consisting of principle and interest in the amounts of$70,000 and$6,783,respectively. As of April 30,2012 the outstanding balance on the bonds was $75,000. This TIF was terminated on December 31,2011, and a surplus of$637,707 was remitted to the County for dissemination amongst the local taxing bodies. In addition, $78,777 was transferred to the City's Debt Service Fund in order to satisfy the final debt service requirements of the 2002 bond, and$21,050 was transferred to the City's General Fund(to be held in escrow)for the purposes of covering any additional costs associated with the Fox Industrial TIF (TIF compliance costs pertaining to the annual audit,misc admin or legal fees, etc.) Any remaining escrow amounts at fiscal year end will be remitted to the County for dissemination amoungst the taxing districts. 17 Attachment K UNITED CITY OF YORKVILLE, ILLINOIS FOX INDUSTRIAL, COUNTRYSIDE AND DOWNTOWN TAX INCREMENTAL FINANCING DISTRICTS FINANCIAL AND COMPLIANCE REPORT FISCAL YEAR ENDED APRIL 30, 2012 18 Attachment K INDEPENDENT AUDITORS' REPORT 19 Attachment K 27W457 WARRENVILLE RD. •WARRENVILLL, ILLINOIS 60555 Lauterbach & Amen, LLP PHONE 630.393.1483 • FAX 630.393.2516 CERTIFIED PUBLIC ACCOUNTANTS Www.lauterbachamen.com INDEPENDENT AUDITORS' REPORT August 15, 2012 The Honorable City Mayor Members of the City Council United City of Yorkville, Illinois We have audited the accompanying basic financial statements of the governmental activities of the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts of the United City of Yorkville, Illinois as of and for the year ended April 30, 2012, which collectively comprise the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts as listed in the table of contents. The basic financial statements are the responsibility of the United City of Yorkville, Illinois' management. Our responsibility is to express an opinion on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note 1 to the basic financial statements, the basic financial statements present only the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts of the United City of Yorkville, Illinois, and are not intended to present fairly the financial position or results of operations of the United City of Yorkville, Illinois, in conformity with accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts of the United City of Yorkville, Illinois as of April 30, 2012, and the results of its operations for the year then ended in confornity with accounting principles generally accepted in the United States of America. We have also issued a report dated August 15, 2012 on our consideration of the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts' compliance with laws, regulations, contracts and grants. i a, P LAUTERBACH & AMEN, LLP 1 20 Attachment K FINANCIAL STATEMENTS 21 Attachment K UNITED CITY OF YORKVILLE,ILLINOIS FOX INDUTRIAL,COUNTRYSIDE AND DOWNTOWN TAX INCREMENTAL FINANCING DISTRICTS Balance Sheet April 30,2012 Fox Industrial Countryside Downtown TIF TIF TIF ASSETS Cash and Investments $ - 1,878,062 261,109 LIABILITIES AND FUND BALANCE Liabilities Accounts Payable - 190 3,156 Fund Balance Restricted - 1,877,872 257,953 Total Liabilities and Fund Balance - 1,878,062 261,109 The notes to the financial statements are an integral part of this statement. 2 22 Attachment K UNITED CITY OF YORKVILLE,ILLINOIS FOX INDUTRIAL, COUNTRYSIDE AND DOWNTOWN TAX INCREMENTAL FINANCING DISTRICTS Statement of Revenues,Expenditures and Changes in Fund Balance Year Ended April 30,2012 Fox Industrial Countryside Downtown TIF TIF TIF Revenues Property Taxes $ 259,052 4,189 67,808 Interest 275 2,718 126 Total Revenues 259,327 6,907 67,934 Expenditures General Government Administration Fees 673,558 1,067 12,152 Capital Outlay - - 7,589 Debt Service Principal Retirement 70,000 175,000 - Interest and Fiscal Charges 6,782 131,518 - Total Expenditures 750,340 307,585 19,741 Excess(Defienciency)of Revenues Over(Under)Expenditures (491,013) (300,678) 48,193 Other Financing(Uses) Transfer Out (78,777) - - Net Change in Fund Balance (569,790) (300,678) 48,193 Fund Balance-Beginning 569,790 2,178,550 209,760 Fund Balance -Ending - 1,877,872 257,953 The notes to the financial statements are an integral part of this statement. 23 Attachment K UNITED CITY OF YORKVILLE,ILLINOIS FOX INDUSTRIAL, COUNTRYSIDE AND DOWNTOWN TAX INCREMENTAL FINANCING DISTRICTS Notes to the Financial Statements April 30, 2012 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The operations of Fox Industrial, Countryside and Downtown Tax Incremental Financing Districts are accounted for through special revenue funds of the United City of Yorkville, Illinois. It applies the following policies: Basis of Accounting The financial statements are prepared on the modified accrual basis of accounting under which revenue is recognized when it becomes both measurable and available, and expenditures generally are recognized when the liability is incurred. 4 24 Attachment L 27W457 WARRENVILLE RD. • WARRENVILLE, ILLINOIS 60555 Lauterbach & Amen, LLP PHONE 630.393.1483 • FAX 630.393.2516 CERTIFIED PUBLIC ACCOUNTANTS WWW.lauterbach amen.com INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS August 15, 2012 The Honorable City Mayor Members of the City Council United City of Yorkville, Illinois We have audited the accompanying basic financial statements of the governmental activities of the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts of the United City of Yorkville, Illinois, as of and for the year ended April 30, 2012, and have issued our report thereon dated August 15, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Compliance Compliance with laws, regulations, contracts, and grants applicable to the Financing Districts are the responsibility of the United City of Yorkville's management. As part of obtaining reasonable assurance about whether basic financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts and grants applicable to the Financing District, including the City's compliance with subsection (q) of Section 11-74.4-3 of the State of Illinois Public Act 85-1142, An Act in Relation to Tax Increment Financing, noncompliance with which could have a direct and material effect on the determination of basic financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance with the provisions referred to in the preceding paragraph. This report is intended for the information of the members of the City Council and management, and is not intended to be used and should not be used by anyone other then these specified parties. J,� d��L LAUTERBACH & AMEN, LLP 5 25 Countryside TIF District FY 2012 ANNUAL TAX INCREMENT FINANCE STATE OF ILLINOIS REPORT COMPTROLLER NmmenfMunicipality: United C of Yorkville Reporting Fiscal Year: 2012 County: Kendall Fiscal Year End: O4/3O/2O12 Unit Code: 047Y005130 Name: Fredrickson First Narne: Rob Address: 800 Game Farm Road Title: Finance Director Telephone: 630'553-8534 City: Yorkville Zip: 80580 E-Mail: ---------- --------- Section I attest to the best of my knowledge, this report of the redevelopment project areas in: City of Yorkville, Illinois is complete and accurate at the end of this reporting Fiscal year under the Tax Increment Allocation Redevelopment Act [65 ILCS 5/11-74.4-3 et, seq.] Or the Industrial Jobs Recovery Law[65 ILCS 5/11-74.6-10 et. Written signature of TIF Administrator Name of Redevelopment Project Area Date Designated Date Terminated United City of Yorkville Tax Increment Financing Redevelopment Project Area - US Rte 34 & IL Rte 47 Countryside 2/15/2005 *All statutory citations refer to one of two sections of the Illinois Municipal Code: the Tax Increment Allocation Redevelopment Act [6G |LC8511-74.4-3 et. yeq] or the Industrial Jobs Recovery Law U55 |LCS5/i1-74.6'10et. seq.] FY 2012 T|F Name: US Rte 34 |L Rte 47 26 � SECTION 2[Sections 2 through 5 must be completed for each redevelopment project area listed in Section 1.] Name of Redevelopment Project Area: U.S.Route 34 and IL Route 47-Countryside Shopping Center Primary Use of Redevelopment Project Area*: Commercial If"Combination/Mixed"List Component Types: Under which section of the Illinois Municipal Code was Redevelopment Project Area designated?(check one): Tax Increment Allocation Redevelopment Act X Industrial Jobs Recovery Law No Yes Were there any amendments to the redevelopment plan, the redevelopment project area, or the State Sales Tax Boundary?[65 ILCS 5/11-74.4-5(d)(1)and 5/11-74.6-22(d)(1)] If yes, please enclose the amendment labeled Attachment A X Certification of the Chief Executive Officer of the municipality that the municipality has complied with all of the requirements of the Act during the preceding fiscal year. [65 ILCS 5/11-74.4-5 (d) (3) and 5/11-74.6- 22(d)(3)] Please enclose the CEO Certification labeled Attachment B X Opinion of legal counsel that municipality is in compliance with the Act. [65 ILCS 5/11-74.4-5(d) (4)and 5/11-74.6-22(d)(4)] Please enclose the Legal Counsel Opinion labeled Attachment C X Were there any activities undertaken in furtherance of the objectives of the redevelopment plan, including any project implemented in the preceding fiscal year and a description of the activities undertaken? [65 ILCS 5/11-74.4-5(d)(7)(A and B)and 5/11-74.6-22(d)(7)(A and B)] If yes, please enclose the Activities Statement labeled Attachment C X Were any agreements entered into by the municipality with regard to the disposition or redevelopment of any property within the redevelopment project area or the area within the State Sales Tax Boundary?[65 ILCS 5/11-74.4-5(d)(7)(C)and 5/11-74.6-22(d)(7)(C)] If yes, please enclose the Agreement(s)labeled Attachment E X Is there additional information on the use of all funds received under this Division and steps taken by the municipality to achieve the objectives of the redevelopment plan? [65 ILCS 5/11-74.4-5 (d) (7) (D) and 5/11-74.6-22(d)(7)(D)] If yes, please enclose the Additional Information labeled Attachment F X Did the municipality's TIF advisors or consultants enter into contracts with entities or persons that have received or are receiving payments financed by tax increment revenues produced by the same TIF? [65 ILCS 5/11-74.4-5(d)(7)(E)and 5/11-74.6-22(d)(7)(E)] If yes, please enclose the contract(s)or description of the contract(s)labeled Attachment G X Were there any reports or meeting minutes submitted to the municipality by the joint review board? [65 ILCS 5/11-74.4-5(d)(7)(F)and 5/11-74.6-22(d)(7)(F)] If yes, please enclose the Joint Review Board Report labeled Attachment H X Were any obligations issued by municipality?[65 ILCS 5/11-74.4-5(d)(8)(A)and 5/11-74.6-22(d)(8)(A)] If yes, please enclose the Official Statement labeled Attachment I X Was analysis prepared by a financial advisor or underwriter setting forth the nature and term of obligation and projected debt service including required reserves and debt coverage? [65 ILCS 5/11-74.4-5 (d) (8) (B)and 5/11-74.6-22(d)(8)(B)] If yes, please enclose the Analysis labeled Attachment J X Cumulatively, have deposits equal or greater than $100,000 been made into the special tax allocation fund?65 ILCS 5/11-74.4-5(d)(2)and 5/11-74.6-22(d)(2) If yes, please enclose Audited financial statements of the special tax allocation fund labeled Attachment K X Cumulatively, have deposits of incremental revenue equal to or greater than $100,000 been made into the special tax allocation fund?65 ILCS 5/11-74.4-5(d)(9)and 5/11-74.6-22(d)(9) If yes, please enclose a certified letter statement reviewing compliance with the Act labeled Attachment L X A list of all intergovernmental agreements in effect in FY 2010,to which the municipality is a part,and an accounting of any money transferred or received by the municipality during that fiscal year pursuant to those intergovernmental agreements. [65 ILCS 5/11-74.4-5(d)(10)] If yes, please enclose list only of the intergovernmental agreements labeled Attachment M X Types include:Central Business District, Retail, Other Commercial, Industrial, Residential, and Combination/Mixed. FY 2012 TIF Name: US Rte 34 IL Rte 47 27 SECTION 3.1 -(65 ILCS 5111-74.4-5(d)(5)and 65 ILCS 5/11-74.6-22 (d) (5)) Provide an analysis of the special tax allocation fund. Reporting Year Cumulative Fund Balance at Beginning of Reporting Period $ 2,178,550 Revenue/Cash Receipts Deposited in Fund During Reporting FY: % of Total Property Tax Increment $ 4,189 $ 33,219 1% State Sales Tax Increment 0% Local Sales Tax Increment 0% State Utility Tax Increment 0% Local Utility Tax Increment 0% Interest $ 2,718 $ 392,946 10% Land/Building Sale Proceeds 0% Bond Proceeds $ - $ 3,506,099 89% Transfers from Municipal Sources 0% Private Sources 0% Other(identify source ; if multiple other sources, attach schedule) 0% Total Amount Deposited in Special Tax Allocation Fund During Reporting Period $ 6,907 Cumulative Total Revenues/Cash Receipts $ 3,932,265 100% Total Expenditures/Cash Disbursements(Carried forward from Section 3.2) $ 307,585 Distribution of Surplus $ - Total Expenditures/Disbursements $ 307,585 NET INCOME/CASH RECEIPTS OVER/(UNDER) CASH DISBURSEMENTS $ (300,678) FUND BALANCE, END OF REPORTING PERIOD $ 1,877,872 - if there is a positive fund balance at the end of the reporting period, you must complete Section 3.3 FY 2012 TIF Name: US Rte 34 IL Rte 47 28 SECTION 3.2 A-(65 ILCS 5/11-74.4-5(d)(5)and 65 ILCS 5/11-74.6-22(d)(5); ITEMIZED LIST OF ALL EXPENDITURES FROM THE SPECIAL TAX ALLOCATION FUND (by category of permissible redevelopment cost,amounts expended during reporting period) FOR AMOUNTS>$10,000 SECTION 3.2 B MUST BE COMPLETED Category of Permissible Redevelopment Cost[65 ILCS 5/11-74.4-3(q)and 65 ILCS 5/11-74.6-10(o), Reporting Fiscal Year 1.Costs of studies,administration and professional services—Subsections(q)(1)and o 1 Legal Services 750 Auditing Services-TIF Compliance Report 317 Paying Agent Fees 375 $ 1,442 2.Cost of marketing sites—Subsections 1.6 and(o)(1.6) 3. Property assembly, demolition, site preparation and environmental site improvement costs. Subsection 2 , (o)(2)and(o)(3) 4. Costs of rehabilitation, reconstruction, repair or remodeling and replacement of existing public buildings.Subsection 3 and(o)(4) 5.Costs of construction of public works and improvements.Subsection q)(4)and(o)(5) 6. Costs of removing contaminants required by environmental laws or rules(o)(6)- Industrial Jobs Recovery TIFs ONLY FY 2012 TIF Name: US Rte 34 IL Rte 47 29 7. Cost of job training and retraining,including"welfare to work"programs Subsection(q)(5),(0)(7) and (0)(12) 8. Financing costs. Subsection (q)(6)and (0)(8) Principal 175,000 Interest 131,143 $ 306,143 9.Approved capital costs. Subsection(q)(7)and(0)(9) 10. Cost of Reimbursing school districts for their increased costs caused by TIF assisted housing projects. Subsection (q)(7.5)-Tax Increment Allocation Redevelopment TIFs ONLY 11. Relocation costs. Subsection(q)(8)and (o)(1 0) 12. Payments in lieu of taxes.Subsection (q)(9)and (o)(1 1) 13. Costs of job training, retraining advanced vocational or career education provided by other taxing bodies.Subsection(q)(10)and(o)(1 2) FY 2012 TIF Name: US Rte 34 IL Rte 47 30 14. Costs of reimbursing private developers for interest expenses incurred on approved redevelopment projects. Subsection(q)(1 1 A-E and o 13)(A-E) 15. Costs of construction of new housing units for low income and very low-income households. Subsection(q)(1 1 (F)-Tax Increment Allocation Redevelopment TIFs ONLY 16. Cost of day care services and operational costs of day care centers. Subsection (q) (11.5)- Tax Increment Allocation Redevelopment TIFs ONLY $ - TOTAL ITEMIZED EXPENDITURES $ 307,585 FY 2012 TIF Name: US Rte 34 IL Rte 47 31 Section 3.2 B List all vendors, including other municipal funds,that were paid in excess of$10,000 during the current reporting year. There were no vendors, including other municipal funds, paid in excess of $10,000 during the current reporting period. Name Service Amount The Bank of New York Paying Agent $306,518 FY 2012 TIF Name: US Rte 34 IL Rte 47 32 SECTION 3.3- (65 ILCS 5/11-74.4-5(d) (5) 65 ILCS 11-74.6-22 (d) (5)) Breakdown of the Balance in the Special Tax Allocation Fund At the End of the Reporting Period (65 ILCS 5/11-74.4-5 (d) (5) (D)and 65 ILCS 5/11-74.6-22 (d) (5) (D)) FUND BALANCE, END OF REPORTING PERIOD $ 1,877,872 Amount of Original Issuance Amount Designated 1. Description of Debt Obligations General Obligation Bonds Series 2005 $ 3,525,000 $ 3,015,000 Total Amount Designated for Obligations $ 3,525,000 1 $ 3,015,000 2. Description of Project Costs to be Paid Total Amount Designated for Project Costs $ - TOTAL AMOUNT DESIGNATED $ 3,015,000 SURPLUS-/(DEFICIT) 1 (1,137,128) * NOTE: If a surplus is calculated, the municipality may be required to repay the amount to overlapping taxing FY 2012 TIF Name: US Rte 34 IL Rte 47 33 SECTION 4 [65 ILCS 5/11-74.4-5 (d) (6) and 65 ILCS 5/11-74.6-22 (d) (6)] Provide a description of all property purchased by the municipality during the reporting fiscal year within the redevelopment project area. X No property was acquired by the Municipality Within the Redevelopment Project Area Property Acquired by the Municipality Within the Redevelopment Project Area Property (1): Street address: Approximate size or description of property: Purchase price: Seller of property: Property(2): Street address: Approximate size or description of property: Purchase price: Seller of property: Property(3): Street address: Approximate size or description of property: Purchase price: Seller of property: Property (4): Street address: Approximate size or description of property: Purchase price: Seller of property: FY 2012 TIF Name: US Rte 34 IL Rte 47 34 SECTION 5-65 ILCS 5/11-74.4-5 (d) (7) (G)and 65 ILCS 5/11-74.6-22 (d) (7) (G) Page 1 If NO projects were undertaken by the Municipality Within the Redevelopment Project Area, indicate X If Projects WERE undertaken by the Municipality Within the Redevelopment Project Area enter the Estimated Investment for Subsequent Fiscal Estimated Cost of 11/1/99 to Date Year the Total Project TOTAL: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 1: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 2: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 3: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 4: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 5: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 FY 2012 TIF Name: US Rte 34 IL Rte 47 35 Optional: Information in the following sections is not required by law, but would be helpful in evaluating the performance of TIF in Illinois. SECTION 6 Provide the base EAV (at the time of designation)and the EAV for the year reported for the redevelopment project area Year redevelopment project area was Reporting Fiscal Year designated Base EAV EAV 2/15/2005 $ 1,528,166 $ 1,576,920 List all overlapping tax districts in the redevelopment project area. If overlapping taxing district received a surplus, list the surplus. _X The overlapping taxing districts did not receive a surplus. Surplus Distributed from redevelopment Overlapping Taxing District project area to overlapping districts SECTION 7 Provide information about job creation and retention Description and Type Number of Jobs (Temporary or Retained Number of Jobs Created Permanent) of Jobs Total Salaries Paid SECTION 8 Provide a general description of the redevelopment project area using only major boundaries: Optional Documents Enclosed Legal description of redevelopment project area previously provided Map of District previously provided FY 2012 TIF Name: US Rte 34 IL Rte 47 36 Attachment B CEry o United City of Yorkville J 800 Game Farm Road - Yorkville, Illinois, 60560 o r� Telephone; 630-553-4350 CERTIFICATION OF CHIEF EXECUTIVE OFFICER I, Gary J. Golinski, Mayor of the United City of Yorkville, Kendall County, Illinois, certify that the City has complied with all of the requirements of the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1 et seq. during the fiscal year ending April 30, 2012, in connection with the administration of the U.S. Route 34 and IL Route 47 (Countryside Shopping Center) Tax Increment Financing District. Gary J. G 6/ski, Mayor 37 LAW OFFICE KATHLEEN FIELD ORR & ASSOCIATES 53 WEST JACKSON BOULEVARD SUITE 435 CHICAGO, ILLINOIS 60604 (312)382-2113 (312)382-2127 facsimile KATHLEEN FIELD ORR JAMES W. BINNINGER kfo a,kfoassoc.com jwb c,kfoassoc.com October 22, 2012 Judy Barr Topinka, State Comptroller State of Illinois Building 100 West Randolph Street Suite 15-500 Chicago, Illinois 60601 Dear Ms. Topinka: I have acted as City Attorney for the United City of Yorkville, Kendall County, Illinois, in connection with the administration of the City's U.S. Route 34 & Illinois Route 47 Countryside Tax Increment Redevelopment Project Area. I have reviewed all information provided to me by the City staff and, to the best of my knowledge and belief, find that the City has conformed with all of the applicable provisions of the Tax Increment Allocation Redevelopment Act, 65 ILCS 5111-74.4-1, et seq., for the fiscal year ending April 30, 2012. Very truly yours, KATHLEEN FIELD ORR & ASSOCIATES Tai W. Binninger ATTACHMENT C 38 Unit Code 047/035/30 Attachment D Activities Statement US Rte 34&IL Rte 47 Countryside In 2005 the City issued bonds in the amount of$3.525 million,the proceeds of which would be used to finance future retail development at Countryside Center. As of April 30,2012,there are no active projects in the TIF district. However,the City, in partnership with the Yorkville Economic Development Corporation(YEDC), continues to actively pursue potential developers. In fiscal year 2012,the TIF district paid$306,143 in debt service costs, consisting of principle and interest in the amounts of$175,000 and$131,143,respectively. As of April 30,2012 the outstanding balance on the bonds was $3,015,000. 39 Attachment K UNITED CITY OF YORKVILLE, ILLINOIS FOX INDUSTRIAL, COUNTRYSIDE AND DOWNTOWN TAX INCREMENTAL FINANCING DISTRICTS FINANCIAL AND COMPLIANCE REPORT FISCAL YEAR ENDED APRIL 30, 2012 40 Attachment K INDEPENDENT AUDITORS' REPORT 41 Attachment K 27W457 WARRENVILLE RD. •WARRENVILLL, ILLINOIS 60555 Lauterbach & Amen, LLP PHONE 630.393.1483 • FAX 630.393.2516 CERTIFIED PUBLIC ACCOUNTANTS Www.lauterbachamen.com INDEPENDENT AUDITORS' REPORT August 15, 2012 The Honorable City Mayor Members of the City Council United City of Yorkville, Illinois We have audited the accompanying basic financial statements of the governmental activities of the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts of the United City of Yorkville, Illinois as of and for the year ended April 30, 2012, which collectively comprise the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts as listed in the table of contents. The basic financial statements are the responsibility of the United City of Yorkville, Illinois' management. Our responsibility is to express an opinion on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note 1 to the basic financial statements, the basic financial statements present only the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts of the United City of Yorkville, Illinois, and are not intended to present fairly the financial position or results of operations of the United City of Yorkville, Illinois, in conformity with accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts of the United City of Yorkville, Illinois as of April 30, 2012, and the results of its operations for the year then ended in confornity with accounting principles generally accepted in the United States of America. We have also issued a report dated August 15, 2012 on our consideration of the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts' compliance with laws, regulations, contracts and grants. i a, P LAUTERBACH & AMEN, LLP 1 42 Attachment K FINANCIAL STATEMENTS 43 Attachment K UNITED CITY OF YORKVILLE,ILLINOIS FOX INDUTRIAL,COUNTRYSIDE AND DOWNTOWN TAX INCREMENTAL FINANCING DISTRICTS Balance Sheet April 30,2012 Fox Industrial Countryside Downtown TIF TIF TIF ASSETS Cash and Investments $ - 1,878,062 261,109 LIABILITIES AND FUND BALANCE Liabilities Accounts Payable - 190 3,156 Fund Balance Restricted - 1,877,872 257,953 Total Liabilities and Fund Balance - 1,878,062 261,109 The notes to the financial statements are an integral part of this statement. 2 44 Attachment K UNITED CITY OF YORKVILLE,ILLINOIS FOX INDUTRIAL, COUNTRYSIDE AND DOWNTOWN TAX INCREMENTAL FINANCING DISTRICTS Statement of Revenues,Expenditures and Changes in Fund Balance Year Ended April 30,2012 Fox Industrial Countryside Downtown TIF TIF TIF Revenues Property Taxes $ 259,052 4,189 67,808 Interest 275 2,718 126 Total Revenues 259,327 6,907 67,934 Expenditures General Government Administration Fees 673,558 1,067 12,152 Capital Outlay - - 7,589 Debt Service Principal Retirement 70,000 175,000 - Interest and Fiscal Charges 6,782 131,518 - Total Expenditures 750,340 307,585 19,741 Excess(Defienciency)of Revenues Over(Under)Expenditures (491,013) (300,678) 48,193 Other Financing(Uses) Transfer Out (78,777) - - Net Change in Fund Balance (569,790) (300,678) 48,193 Fund Balance-Beginning 569,790 2,178,550 209,760 Fund Balance -Ending - 1,877,872 257,953 The notes to the financial statements are an integral part of this statement. 45 Attachment K UNITED CITY OF YORKVILLE,ILLINOIS FOX INDUSTRIAL, COUNTRYSIDE AND DOWNTOWN TAX INCREMENTAL FINANCING DISTRICTS Notes to the Financial Statements April 30, 2012 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The operations of Fox Industrial, Countryside and Downtown Tax Incremental Financing Districts are accounted for through special revenue funds of the United City of Yorkville, Illinois. It applies the following policies: Basis of Accounting The financial statements are prepared on the modified accrual basis of accounting under which revenue is recognized when it becomes both measurable and available, and expenditures generally are recognized when the liability is incurred. 4 46 Attachment L 27W457 WARRENVILLE RD. • WARRENVILLE, ILLINOIS 60555 Lauterbach & Amen, LLP PHONE 630.393.1483 • FAX 630.393.2516 CERTIFIED PUBLIC ACCOUNTANTS WWW.lauterbach amen.com INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS August 15, 2012 The Honorable City Mayor Members of the City Council United City of Yorkville, Illinois We have audited the accompanying basic financial statements of the governmental activities of the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts of the United City of Yorkville, Illinois, as of and for the year ended April 30, 2012, and have issued our report thereon dated August 15, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Compliance Compliance with laws, regulations, contracts, and grants applicable to the Financing Districts are the responsibility of the United City of Yorkville's management. As part of obtaining reasonable assurance about whether basic financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts and grants applicable to the Financing District, including the City's compliance with subsection (q) of Section 11-74.4-3 of the State of Illinois Public Act 85-1142, An Act in Relation to Tax Increment Financing, noncompliance with which could have a direct and material effect on the determination of basic financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance with the provisions referred to in the preceding paragraph. This report is intended for the information of the members of the City Council and management, and is not intended to be used and should not be used by anyone other then these specified parties. J,� d��L LAUTERBACH & AMEN, LLP 5 47 Downtown TIF District FY 2012 ANNUAL TAX INCREMENT FINANCE STATE OF ILLINOIS REPORT ^; COMPTROLLER JUDY BAAR TOPINKA Name of Municipality: United City of Yorkville Reporting Fiscal Year: 2012 County: Kendall Fiscal Year End: 0413012012 Unit Code: 047/035/30 TIF Administrator Cont' act 1nfnrmatian. First Name: Rob Last Name: Fredrickson Address: 800 Game Farm Road Title: Finance Director Telephone: 630-553-8534 City: Yorkville Zip: 60560 E-Mail: rfredrickson@yorkville.il.us I attest to the best of my knowledge, this report of the redevelopment project areas in: City of Yorkville, Illinois is complete and accurate at the end of this reporting Fiscal year under the Tax Increment Allocation Redevelopment Act [65 ILCS 5111-74.4-3 et. seq.] Or the Industrial Jobs Recovery Law[65 ILCS 5111-74.6-10 et. seq.] Written signature of TIF Administrator Date Section 1 65 ILCS 5111-74.4-5 d 1.5 and 65 ILCS 5111-74.6-22 d 1.5 F1L:L:.OU ON' 1t:l A H TIC. I " r,7 .. . Name of Redevelopment Project Area Date Designated Date Terminated United City of Yorkville Tax Increment Financing Redevelopment Project Area - Downtown Yorkville 6/13/2006 *All statutory citations refer to one of two sections of the Illinois Municipal Code: the Tax Increment Allocation Redevelopment Act [65 ILCS 5111-74.4-3 et. seq.] or the Industrial Jobs Recovery Law[65 ILCS 5111-74.6-10 et. seq.] FY 2012 TIF Name: Downtown Yorkville 48 SECTION 2 [Sections 2 through 5 must be completed for each redevelopment project area listed in Section 1.] Name of Redevelopment Project Area: Downtown Yorkville Primary Use of Redevelopment Project Area*: Combination/Mixed If"Combination/Mixed" List Component Types: Commercial/Residential Under which section of the Illinois Municipal Code was Redevelopment Project Area designated?(check one): Tax Increment Allocation Redevelopment Act X Industrial Jobs Recovery Law No Yes Were there any amendments to the redevelopment plan, the redevelopment project area, or the State Sales Tax Boundary? [65 ILCS 5/11-74.4-5(d)(1)and 5/11-74.6-22 (d)(1)] If yes, please enclose the amendment labeled Attachment A X Certification of the Chief Executive Officer of the municipality that the municipality has complied with all of the requirements of the Act during the preceding fiscal year. [65 ILCS 5/11-74.4-5 (d) (3) and 5/11- 74.6-22 (d)(3)] Please enclose the CEO Certification labeled Attachment B X Opinion of legal counsel that municipality is in compliance with the Act. [65 ILCS 5/11-74.4-5 (d) (4)and 5/11-74.6-22 (d)(4)] Please enclose the Legal Counsel Opinion labeled Attachment C X Were there any activities undertaken in furtherance of the objectives of the redevelopment plan, including any project implemented in the preceding fiscal year and a description of the activities undertaken? [65 ILCS 5/11-74.4-5(d)(7)(A and B)and 5/11-74.6-22(d)(7)(A and B)] If yes, please enclose the Activities Statement labeled Attachment D X Were any agreements entered into by the municipality with regard to the disposition or redevelopment of any property within the redevelopment project area or the area within the State Sales Tax Boundary?[65 ILCS 5/11-74.4-5(d)(7)(C)and 5/11-74.6-22 (d)(7)(C)] If yes, please enclose the Agreement(s)labeled Attachment E X Is there additional information on the use of all funds received under this Division and steps taken by the municipality to achieve the objectives of the redevelopment plan? [65 ILCS 5/11-74.4-5 (d) (7) (D) and 5/11-74.6-22 (d)(7)(D)] If yes, please enclose the Additional Information labeled Attachment F X Did the municipality's TIF advisors or consultants enter into contracts with entities or persons that have received or are receiving payments financed by tax increment revenues produced by the same TIF? [65 ILCS 5/11-74.4-5(d)(7)(E)and 5/11-74.6-22 (d)(7)(E)] If yes, please enclose the contract(s)or description of the contract(s) labeled Attachment G X Were there any reports or meeting minutes submitted to the municipality by the joint review board? [65 ILCS 5/11-74.4-5(d)(7)(F)and 5/11-74.6-22 (d)(7)(F)] If yes, please enclose the Joint Review Board Report labeled Attachment H X Were any obligations issued by municipality?[65 ILCS 5/11-74.4-5(d)(8)(A)and 5/11-74.6-22 (d)(8)(A)] If yes, please enclose the Official Statement labeled Attachment I X Was analysis prepared by a financial advisor or underwriter setting forth the nature and term of obligation and projected debt service including required reserves and debt coverage?[65 ILCS 5/11-74.4 5(d)(8)(B)and 5/11-74.6-22(d)(8)(B)] If yes, please enclose the Analysis labeled Attachment J X Cumulatively, have deposits equal or greater than $100,000 been made into the special tax allocation fund?65 ILCS 5/11-74.4-5(d)(2)and 5/11-74.6-22(d)(2) If yes, please enclose Audited financial statements of the special tax allocation fund labeled Attachment K X Cumulatively, have deposits of incremental revenue equal to or greater than $100,000 been made into the special tax allocation fund?65 ILCS 5/11-74.4-5 (d)(9)and 5/11-74.6-22 (d)(9) If yes, please enclose a certified letter statement reviewing compliance with the Act labeled Attachment L X A list of all intergovernmental agreements in effect in FY 2010,to which the municipality is a part, and an accounting of any money transferred or received by the municipality during that fiscal year pursuant to those intergovernmental agreements. [65 ILCS 5/11-74.4-5(d)(10)] If yes, please enclose list only of the intergovernmental agreements labeled Attachment M X *Types include: Central Business District, Retail, Other Commercial, Industrial, Residential, and Combination/Mixed. FY 2012 TIF Name: Downtown Yorkville 49 SECTION 3.1 -(65 ILCS 5111-74.4-5(d)(5)and 65 ILCS 5/11-74.6-22 (d) (5)) Provide an analysis of the special tax allocation fund. Reporting Year Cumulative Fund Balance at Beginning of Reporting Period $ 209,760 Revenue/Cash Receipts Deposited in Fund During Reporting FY: % of Total Property Tax Increment $ 67,808 $ 338,067 99% State Sales Tax Increment 0% Local Sales Tax Increment 0% State Utility Tax Increment 0% Local Utility Tax Increment 0% Interest $ 126 $ 3,677 1% Land/Building Sale Proceeds 0% Bond Proceeds 0% Transfers from Municipal Sources 0% Private Sources 0% Other(identify source ; if multiple other sources, attach schedule) 0% Total Amount Deposited in Special Tax Allocation Fund During Reporting Period $ 67,934 Cumulative Total Revenues/Cash Receipts $ 341,744 100% Total Expenditures/Cash Disbursements(Carried forward from Section 3.2) $ 19,741 Distribution of Surplus $ - Total Expenditures/Disbursements $ 19,741 NET INCOME/CASH RECEIPTS OVER/(UNDER)CASH DISBURSEMENTS $ 48,193 FUND BALANCE, END OF REPORTING PERIOD $ 257,953 - if there is a positive fund balance at the end of the reporting period, you must complete Section 3.3 FY 2012 TIF Name: Downtown Yorkville 50 SECTION 3.2 A-(65 ILCS 5/11-74.4-5(d)(5)and 65 ILCS 5/11-74.6-22(d)(5); ITEMIZED LIST OF ALL EXPENDITURES FROM THE SPECIAL TAX ALLOCATION FUND (by category of permissible redevelopment cost,amounts expended during reporting period) FOR AMOUNTS>$10,000 SECTION 3.2 B MUST BE COMPLETED Category of Permissible Redevelopment Cost[65 ILCS 5/11-74.4-3(q)and 65 ILCS 5/11-74.6-10(o), Reporting Fiscal Year 1.Costs of studies,administration and professional services—Subsections(q)(1)and o 1 Legal Services 11,786 Auditing Services-TIF Compliance Report 317 Filing Fees 49 Engineering Services 6,786 $ 18,938 2.Cost of marketing sites—Subsections 1.6 and(o)(1.6) Canoecopia Marketing Expenses 803 $ 803 3. Property assembly, demolition, site preparation and environmental site improvement costs. Subsection 2 , (o)(2)and(o)(3) 4. Costs of rehabilitation, reconstruction, repair or remodeling and replacement of existing public buildings.Subsection 3 and(o)(4) 5.Costs of construction of public works and improvements.Subsection q)(4)and(o)(5) 6. Costs of removing contaminants required by environmental laws or rules(o)(6)- Industrial Jobs Recovery TIFs ONLY FY 2012 TIF Name: Downtown Yorkville 51 7. Cost of job training and retraining,including"welfare to work"programs Subsection(q)(5),(0)(7) and (0)(12) 8. Financing costs. Subsection (q)(6)and (0)(8) 9.Approved capital costs. Subsection(q)(7)and(0)(9) 10. Cost of Reimbursing school districts for their increased costs caused by TIF assisted housing projects. Subsection (q)(7.5)-Tax Increment Allocation Redevelopment TIFs ONLY 11. Relocation costs. Subsection(q)(8)and (o)(1 0) 12. Payments in lieu of taxes.Subsection (q)(9)and (o)(1 1) 13. Costs of job training, retraining advanced vocational or career education provided by other taxing bodies.Subsection(q)(10)and(o)(1 2) FY 2012 TIF Name: Downtown Yorkville 52 14. Costs of reimbursing private developers for interest expenses incurred on approved redevelopment projects. Subsection(q)(1 1 A-E and o 13)(A-E) 15. Costs of construction of new housing units for low income and very low-income households. Subsection(q)(1 1 (F)-Tax Increment Allocation Redevelopment TIFs ONLY 16. Cost of day care services and operational costs of day care centers. Subsection (q) (11.5)- Tax Increment Allocation Redevelopment TIFs ONLY $ - TOTAL ITEMIZED EXPENDITURES $ 19,741 FY 2012 TIF Name: Downtown Yorkville 53 Section 3.2 B List all vendors, including other municipal funds,that were paid in excess of$10,000 during the current reporting year. There were no vendors, including other municipal funds, paid in excess of $10,000 during the current reporting period. Name Service Amount KFO &Associates Legal $ 11,786.00 FY 2012 TIF Name: Downtown Yorkville 54 SECTION 3.3- (65 ILCS 5/11-74.4-5(d) (5) 65 ILCS 11-74.6-22 (d) (5)) Breakdown of the Balance in the Special Tax Allocation Fund At the End of the Reporting Period (65 ILCS 5/11-74.4-5 (d) (5) (D)and 65 ILCS 5/11-74.6-22 (d) (5) (D)) FUND BALANCE, END OF REPORTING PERIOD $ 257,953 Amount of Original Issuance Amount Designated 1. Description of Debt Obligations Total Amount Designated for Obligations $ 2. Description of Project Costs to be Paid IL Rte 47 Expansion Project $ 200,000 Imperial Investments Redevelopment Agreement Phase 1 (est.) $ 500,000 Total Amount Designated for Project Costs $ 700,000 TOTAL AMOUNT DESIGNATED $ 700,000 SURPLUS-/(DEFICIT) 1 (442,047) * NOTE: If a surplus is calculated, the municipality may be required to repay the amount to overlapping taxing FY 2012 TIF Name: Downtown Yorkville 55 SECTION 4 [65 ILCS 5/11-74.4-5 (d) (6) and 65 ILCS 5/11-74.6-22 (d) (6)] Provide a description of all property purchased by the municipality during the reporting fiscal year within the redevelopment project area. X No property was acquired by the Municipality Within the Redevelopment Project Area Property Acquired by the Municipality Within the Redevelopment Project Area Property (1): Street address: Approximate size or description of property: Purchase price: Seller of property: Property(2): Street address: Approximate size or description of property: Purchase price: Seller of property: Property(3): Street address: Approximate size or description of property: Purchase price: Seller of property: Property (4): Street address: Approximate size or description of property: Purchase price: Seller of property: FY 2012 TIF Name: Downtown Yorkville 56 SECTION 5-65 ILCS 5/11-74.4-5(d) (7) (G)and 65 ILCS 5/11-74.6-22 (d) (7) (G) Page 1 If NO projects were undertaken by the Municipality Within the Redevelopment Project Area, indicate X If Projects WERE undertaken by the Municipality Within the Redevelopment Project Area enter the Estimated Investment for Subsequent Fiscal Estimated Cost of 11/1/99 to Date Year the Total Project TOTAL: Private Investment Undertaken (See Instructions) $ 2,000,000 $ - $ 2,000,000 Public Investment Undertaken $ 24,063 $ - $ 24,063 Ratio of Private/Public Investment 83 5/43 83 5/43 Project 1: Landscaping Private Investment Undertaken (See Instructions) $ - $ - $ - Public Investment Undertaken $ 24,063 $ - $ 24,063 Ratio of Private/Public Investment 0 0 Project 2: Imperial Investments- Phase 1 est. Private Investment Undertaken (See Instructions) $ 2,000,000 $ - $ 2,000,000 Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 3: Private Investment Undertaken See Instructions Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 4: Private Investment Undertaken See Instructions Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 5: Private Investment Undertaken See Instructions Public Investment Undertaken Ratio of Private/Public Investment 0 0 FY 2012 TIF Name: Downtown Yorkville 57 Optional: Information in the following sections is not required by law, but would be helpful in evaluating the performance of TIF in Illinois. SECTION 6 Provide the base EAV (at the time of designation)and the EAV for the year reported for the redevelopment project area Year redevelopment project area was Reporting Fiscal Year designated Base EAV EAV 6/13/2006 $ 6,373,208 $ 6,935,082 List all overlapping tax districts in the redevelopment project area. If overlapping taxing district received a surplus, list the surplus. _X The overlapping taxing districts did not receive a surplus. Surplus Distributed from redevelopment Overlapping Taxing District project area to overlapping districts SECTION 7 Provide information about job creation and retention Description and Type Number of Jobs Number of Jobs (Temporary or Retained Created Permanent) of Jobs Total Salaries Paid SECTION 8 Provide a general description of the redevelopment project area using only major boundaries: Optional Documents Enclosed Legal description of redevelopment project area previously provided Map of District previously provided FY 2012 TIF Name: Downtown Yorkville 58 Attachment B ,��o car United City of Yorkville 800 Game Farm Road Yorkville, Illinois, 60560 g �3 : Telephone: 630-553-4350 4k. CERTIFICATION OF CHIEF EXECUTIVE OFFICER I, Gary J. Golinski, Mayor of the United City of Yorkville, Kendall County, Illinois, certify that the City has complied with all of the requirements of the Tax Increment Allocation Redevelopment Act, 65 ILCS 5/11-74.4-1 et seq. during the fiscal year ending April 30, 2012, in connection with the administration of the Downtown Tax Increment Financing District. -"It Itili - Gary J. o ksi, ayor 59 LAW OFFICE KATHLEEN FIELD ORR & ASSOCIATES 53 WEST JACKSON BOULEVARD SUITE 935 CHICAGO, ILLINOIS 60604 (312)382-2113 (312)382-2127 facsimile KATHLEEN FIELD ORR JAMES W. BINNINGER kfo a,kfoassoc.com jwb rr,kfoassoc.com October 22, 2012 Judy Barr Topinka, State Comptroller State of Illinois Building 100 West Randolph Street Suite 15-500 Chicago, Illinois 60601 Dear Ms, Topinka; I have acted as City Attorney for the United City of Yorkville, Kendall County, Illinois, in connection with the administration of the City's Downtown Yorkville Tax Increment Redevelopment Project Area. I have reviewed all information provided to me by the City staff and, to the best of my knowledge and belief, find that the City has conformed with all of the applicable provisions of the Tax Increment Allocation Redevelopment Act, 65 ILCS 5111-74.4-1, et seq., for the fiscal year ending April 30, 2012. Very truly yours, KATHLEEN FIELD ORR& ASSOCIATES rJmes W. Binninger ATTACHMENT C 60 Unit Code 047/035/30 Attachment D Activities Statement Downtown Yorkville The Downtown TIF district was created in 2006 to help facilitate mixed use development in the downtown area. Last fiscal year,the City opened the Marge Cline Whitewater Course at Bicentennial Riverfront Park,which features 1,200 feet of artificial rapids and is the only whitewater park within 6 hours of Yorkville. In fiscal year 2012,the City entered into an agreement with Imperial Investments for the redevelopment of several buildings in the downtown area. This proposed mixed use development will result in several new store fronts being added to the downtown,along with renovated residential buildings. Looking forward into the next fiscal year, the City is scheduled to begin construction on the IL Route 47 expansion project in the fall of 2012. This project will include various roadway and infrastructure (water, sanitary sewer, storm sewer) improvements on Route 47 from just south of Kennedy Road through its intersection with IL Route 71. The cost of the project that is applicable to the Downtown TIF district is approximately$200,000. 61 Attachment K UNITED CITY OF YORKVILLE, ILLINOIS FOX INDUSTRIAL, COUNTRYSIDE AND DOWNTOWN TAX INCREMENTAL FINANCING DISTRICTS FINANCIAL AND COMPLIANCE REPORT FISCAL YEAR ENDED APRIL 30, 2012 62 Attachment K INDEPENDENT AUDITORS' REPORT 63 Attachment K 27W457 WARRENVILLE RD. •WARRENVILLL, ILLINOIS 60555 Lauterbach & Amen, LLP PHONE 630.393.1483 • FAX 630.393.2516 CERTIFIED PUBLIC ACCOUNTANTS Www.lauterbachamen.com INDEPENDENT AUDITORS' REPORT August 15, 2012 The Honorable City Mayor Members of the City Council United City of Yorkville, Illinois We have audited the accompanying basic financial statements of the governmental activities of the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts of the United City of Yorkville, Illinois as of and for the year ended April 30, 2012, which collectively comprise the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts as listed in the table of contents. The basic financial statements are the responsibility of the United City of Yorkville, Illinois' management. Our responsibility is to express an opinion on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note 1 to the basic financial statements, the basic financial statements present only the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts of the United City of Yorkville, Illinois, and are not intended to present fairly the financial position or results of operations of the United City of Yorkville, Illinois, in conformity with accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts of the United City of Yorkville, Illinois as of April 30, 2012, and the results of its operations for the year then ended in confornity with accounting principles generally accepted in the United States of America. We have also issued a report dated August 15, 2012 on our consideration of the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts' compliance with laws, regulations, contracts and grants. i a, P LAUTERBACH & AMEN, LLP 1 64 Attachment K FINANCIAL STATEMENTS 65 Attachment K UNITED CITY OF YORKVILLE,ILLINOIS FOX INDUTRIAL,COUNTRYSIDE AND DOWNTOWN TAX INCREMENTAL FINANCING DISTRICTS Balance Sheet April 30,2012 Fox Industrial Countryside Downtown TIF TIF TIF ASSETS Cash and Investments $ - 1,878,062 261,109 LIABILITIES AND FUND BALANCE Liabilities Accounts Payable - 190 3,156 Fund Balance Restricted - 1,877,872 257,953 Total Liabilities and Fund Balance - 1,878,062 261,109 The notes to the financial statements are an integral part of this statement. 2 66 Attachment K UNITED CITY OF YORKVILLE,ILLINOIS FOX INDUTRIAL, COUNTRYSIDE AND DOWNTOWN TAX INCREMENTAL FINANCING DISTRICTS Statement of Revenues,Expenditures and Changes in Fund Balance Year Ended April 30,2012 Fox Industrial Countryside Downtown TIF TIF TIF Revenues Property Taxes $ 259,052 4,189 67,808 Interest 275 2,718 126 Total Revenues 259,327 6,907 67,934 Expenditures General Government Administration Fees 673,558 1,067 12,152 Capital Outlay - - 7,589 Debt Service Principal Retirement 70,000 175,000 - Interest and Fiscal Charges 6,782 131,518 - Total Expenditures 750,340 307,585 19,741 Excess(Defienciency)of Revenues Over(Under)Expenditures (491,013) (300,678) 48,193 Other Financing(Uses) Transfer Out (78,777) - - Net Change in Fund Balance (569,790) (300,678) 48,193 Fund Balance-Beginning 569,790 2,178,550 209,760 Fund Balance -Ending - 1,877,872 257,953 The notes to the financial statements are an integral part of this statement. 67 Attachment K UNITED CITY OF YORKVILLE,ILLINOIS FOX INDUSTRIAL, COUNTRYSIDE AND DOWNTOWN TAX INCREMENTAL FINANCING DISTRICTS Notes to the Financial Statements April 30, 2012 NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The operations of Fox Industrial, Countryside and Downtown Tax Incremental Financing Districts are accounted for through special revenue funds of the United City of Yorkville, Illinois. It applies the following policies: Basis of Accounting The financial statements are prepared on the modified accrual basis of accounting under which revenue is recognized when it becomes both measurable and available, and expenditures generally are recognized when the liability is incurred. 4 68 Attachment L 27W457 WARRENVILLE RD. • WARRENVILLE, ILLINOIS 60555 Lauterbach & Amen, LLP PHONE 630.393.1483 • FAX 630.393.2516 CERTIFIED PUBLIC ACCOUNTANTS WWW.lauterbach amen.com INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS August 15, 2012 The Honorable City Mayor Members of the City Council United City of Yorkville, Illinois We have audited the accompanying basic financial statements of the governmental activities of the Fox Industrial, Countryside, and Downtown Tax Incremental Financing Districts of the United City of Yorkville, Illinois, as of and for the year ended April 30, 2012, and have issued our report thereon dated August 15, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Compliance Compliance with laws, regulations, contracts, and grants applicable to the Financing Districts are the responsibility of the United City of Yorkville's management. As part of obtaining reasonable assurance about whether basic financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts and grants applicable to the Financing District, including the City's compliance with subsection (q) of Section 11-74.4-3 of the State of Illinois Public Act 85-1142, An Act in Relation to Tax Increment Financing, noncompliance with which could have a direct and material effect on the determination of basic financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance with the provisions referred to in the preceding paragraph. This report is intended for the information of the members of the City Council and management, and is not intended to be used and should not be used by anyone other then these specified parties. J,� d��L LAUTERBACH & AMEN, LLP 5 69