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