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Joint Review Board Minutes 2012 11-27-12APPROVED W/ CORRECTIONS 11/26/13 Fiscal Year 2012 Joint Review Board Tuesday, November 27, 2012 3:00 p.m. Yorkville City Hall Conference Room 800 Game Farm Road, Yorkville, IL 60560 Committee 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: Rob Fredrickson, Finance Director - United City of Yorkville Kathleen Field Orr, City Attorney – Kathleen Field Orr & Associates Elect Public Member There was no public member present so City Attorney Orr stated they would forego it. Elect Chair Person Rob Fredrickson, Finance Director - United City of Yorkville – Mr. Lindblom made a motion to appoint Mr. Fredrickson and Mr. Sterrett seconded and Mr. Fredrickson was unanimously elected. Mr. Fredrickson opened the annual meeting by asking for approval of the minutes from the last meeting (October 26, 2011). The minutes were approved unanimously “as is.” Annual Report for Fox Industrial TIF: City Attorney Orr addressed the group stating that the Fox Industrial Park TIF was liquidated at the end of calendar year 2011. Ms. Orr had advised the school district that the City would receive one more year of incremental taxes from the TIF district (i.e. 2011 levy) in calendar year 2012. Once the City received these proceeds from the County, the City would return the proceeds for re-distribution amongst the various taxing districts. However, these events never took place, because the County never extended the 2011 levy for the Fox Industrial TIF. When Mr. Fredrickson called the County, he was informed by the County Clerk’s office that the TIF was permanently closed at the end of 2011 and that there would be no final distribution of incremental property taxes in 2012. Mr. Fredrickson then informed Ms. Orr of the situation and Ms. Orr wrote a letter addressed to the County to find out what was going on. To date, there has been no response from the County. Mr. Fredrickson asked Ms. Orr if she wanted to write more letters or pursue it further. In response, Ms. Orr stated that she did not want the City to incur unnecessary legal fees by writing more letters, because the damage had already been done. The County cannot go back to those who received money and get it back to be re-distributed. In the meantime, Ms. Parisi stated that she is calling the County because she’s trying to figure out if the EAV from the TIF would be available for the 2012 levy. The County Clerk’s office told Mr. Fredrickson that it was. Ms. Parisi asked for an explanation – was it closed a year early? Ms. Orr said, effectively, the County closed it in 2010. Ms. Orr elaborated, stating that the City cannot sue for damages because the City was going to turn around and give the proceeds back anyway. It only affects the other taxing bodies because it would have been additional money for the 2011 levy. Ms. Parisi asked when they got the money and Ms. Orr said it was part of the initial levy for 2011. Whatever was levied by the taxing districts, the County included the TIF increment in that amount. What Ms. Orr had asked for in her letter to the County was an accounting of how the process took place. Mr. Fredrickson noticed on the City’s EAV sheet there was a disconnected EAV (which was the TIF). He assumed it was rolled into the total taxable EAV, but he doesn’t know for sure. That’s why he and Ms. Orr have asked the County for an explanation. Mr. Lindblom asked if that EAV amount should be applied to the levy that will be submitted this December and both Ms. Parisi and Ms. Orr agreed. The school district, B.K.F.P.D. and the City did not receive the money that was due them. Mr. Lindblom suggested they go to the assessor’s office and ask if they have included that in each entities EAV. Ms. Orr said the answer should be, “Yes.” Ms. Parisi asked the group how they knew what they were levying. Mr. Lindblom said their Chief talks to County Assessor to find out what their EAV is to figure out the levy – sort of working backward. He thought the Chief was waiting right now for a final number so they could include it in their December Board meeting. Ms. Orr explained when you do a TIF as a community, all you are saying is you’re going to capture that increase in the EAV, and, by law, you can only use that money to reinvest in that area. The current problem appears to be the assessor is not increasing the assessed value of the area even though there have been major improvements. Ms. Orr pointed out that, more importantly, when a neighbor’s property falls into disarray; your property value also goes down. Once you improve your property, the other properties surrounding it also go back up in value. The issue is the entire TIF district should go up because of the improvements. Ms. Parisi asked why it is being treated as new property this year. Ms. Orr said she would have to ask the County Clerk or Assessor. Annual Report for the Countryside TIF: Ms. Orr began by stating that when this TIF was initially created in 2005, the idea was that a large department store was going to be developed in the Countryside area. So, the City formed a TIF district and issued debt to facilitate the development. Approximately $500,000 of the bond proceeds were used to have the old Countryside mall demolished. However, before the development could proceed any further, the developer went bankrupt without ever doing anything. Mr. Fredrickson stated that according to the current TIF report, $4,000 in incremental property tax was received in FY 2012. That increment, along with the remaining bond proceeds, was used to pay the current year’s debt service. Mr. Fredrickson went on to say that there is now $1,877,872 of bond money remaining (i.e. fund balance) as of April 30, 2012. Ms. Orr mentioned that the City is currently negotiating with a new developer who’s interested in building a 10-screen Cineplex within the TIF district. Ms. Orr thinks that the incremental property taxes from this development it will ultimately be able to satisfy the annual debt service payments. Annual Report for the Downtown TIF: Mr. Fredrickson stated that total fund balance for the TIF district was $257,953 at fiscal year end 2012. There are many projects in the Downtown TIF relating to streets, curbs, gutters, flooding, storm drainage, etc. There is now a developer redeveloping it and the City has entered into a redevelopment agreement with them. The City created the Downtown TIF in 2006; there is another 17 years of increment that will probably be kept in play. The City will be reporting how these funds are being used every year and plans on using all of the funds. There were no further questions and Mr. Fredrickson asked for a motion to adjourn; it was seconded; and the meeting adjourned at 3:50 p.m. Minutes respectfully submitted by: Bonnie Olsem