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Joint Review Board Packet - Downtown II TIF 2019 11-12-19NOTICE OF ANNUAL MEETING OF JOINT REVIEW BOARD Kendall County Bristol-Kendall Fire Protection District 111 West Fox Street 103 East Beaver Street Yorkville, Illinois 60560 Yorkville, Illinois 60560 United City of Yorkville Kendall Township 800 Game Farm Road 9925 B State Route 47 Yorkville, Illinois 60560 Yorkville, Illinois 60560 Waubonsee Junior College #516 Yorkville School Community Unit #115 Route 47 at Waubonsee Drive 602-A Center Parkway Sugar Grove, Illinois 60554 Yorkville, Illinois 60560 YOU ARE HEREBY NOTIFIED that a meeting of the annual Joint Review Board to review the annual report for the Downtown II Tax Increment Financing Redevelopment Project Area will be convened on November 12, 2019 at 3:10 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 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 shall review the annual report for the Downtown Redevelopment Project Area. /s/ Lisa Pickering , City Clerk This page intentionally left blank. A G E N D A ANNUAL JOINT REVIEW BOARD UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS DOWNTOWN II REDEVELOPMENT PROJECT AREA November 12, 2019 United City of Yorkville 3:10 p.m. 800 Game Farm Road Yorkville, Illinois 60560 1. Call the Meeting to Order 2. Roll Call: United City of Yorkville Kendall County Kendall Township Yorkville School District #115 Waubonsee Community College District #516 Bristol-Kendall Fire Protection District 3. Motion to elect or re-elect a Public Member 4. Motion to elect or re-elect a Chairperson 5. Minutes for Approval 6. Review of Annual Report for the Downtown II Redevelopment Project Area 7. Questions, Comments from the Board 8. Discussion, deliberation and recommendation 9. Public Comment 10. Adjournment This page intentionally left blank. Table of Contents Minutes of the Fiscal Year 2018 Joint Review Board .............................................................................. 1 Downtown TIF II Report ........................................................................................................................... 3 Legal Description of Development Project Area .................................................................................... 14 Map of District ........................................................................................................................................ 18 Certification of Chief Executive Officer ................................................................................................. 19 Legal Council Opinion ............................................................................................................................ 20 Activities Statement ................................................................................................................................ 21 Audited Financial Statements ................................................................................................................. 22 Auditor Compliance Letter ..................................................................................................................... 29 This page intentionally left blank. MEETING OF THE JOINT REVIEW BOARD UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS DOWNTOWN REDEVELOPMENT PROJECT AREA #2 Tuesday, February 13, 2018 4:00pm City Hall Conference Room 800 Game Farm Rd., Yorkville, IL Call Meeting to Order The meeting was called to order at 4:02pm by City Attorney Kathleen Orr. Roll Call Attorney Orr took roll call as follows: United City of Yorkville, City Administrator Bart Olson - yes Kendall Township, Steve Gengler, Supervisor - yes Kendall County, Andrez Beltran, Economic Development Coordinator - yes Yorkville Community School Dist. #115, No representative Bristol-Kendall Fire Protection District, No representative Waubonsee Junior College #516, Darla Cardine, Assistant VP of Finance - yes and Sarah Orth from Waubonsee College Others Present: City Attorney Kathleen Orr City of Yorkville Interim Assistant City Administrator Erin Willrett City of Yorkville Community Development Director Krysti Barksdale-Noble City of Yorkville Senior Planner, Jason Engberg Yorkville Citizen Valerie Burd Motion to Elect Public Member Ms. Orr called for a motion to elect a Public Member. So moved by Bart Olson and seconded by Andrez Beltran to elect Valerie Burd as Public Member. Unanimous voice vote approval. Ms. Burd now becomes a voting member of this Joint Review Board. Ms. Orr said it was very important to note that since this TIF District encompasses a residential area, the Public Member must be a resident within the TIF District. If the TIF District does not include a residential area, anyone could serve in the role. Motion to Elect a Chairperson A motion was made by Andrez Beltran and seconded by Valerie Burd to elect Mr. Olson as Chairperson. Approved by unanimous voice vote. Mr. Olson then assumed chairing the meeting. Review of the public record, planning documents and Redevelopment Plan for the Downtown Redevelopment Project Area #2 Jason Engberg gave a presentation of the documents pertaining to the Redevelopment Project. Mr. Olson said that following the presentation, the Board would vote on whether or not they wish to support the project. Mr. Engberg discussed the reason for the TIF as well as the three components of the proposed TIF: eligibility report, housing study and redevelopment plan. He said there is an existing TIF in the downtown that was formed 1 in 2006 when the recession occurred. Some of the properties in the 2006 TIF were pulled out and placed with other identified redevelopment properties to form the second TIF. He said the original TIF is still being examined to see if it should be extended. He noted that the State has qualified Yorkville for the new project. Review of Proposed Ordinances Ms. Orr said in order to adopt the TIF, three ordinances must be adopted by the City Council. The first ordinance is to approve the plan, the second is designating the district to set the boundaries and the third ordinance instructs the County Clerk to create a list of parcel numbers with their assessed valuation. The list of parcel numbers must be done on the day the ordinance is adopted so calculations can be made to determine incremental tax money vs. existing taxes. Ms. Orr said that the Council must establish findings to demonstrate that without a TIF, there will be very little progress in the downtown. Public Comment None Discussion, Deliberation and Recommendation Mr. Olson said there were handouts from the Comp Plan that show the overall plans for the downtown and he said TIF assistance is needed for development. Ms. Burd asked about the reaction from the nearby railroad. Mr. Olson entertained a motion of support. Ms. Burd moved to support the creation of a second TIF and Ms. Cardine seconded. Roll call: United City of Yorkville-yes, Kendall Township-yes, Kendall County-no, Waubonsee College-yes, Public Member Valerie Burd-yes. Carried 4-1. The recommendation will be forwarded to City Council and a Public Hearing will be held March 13th. The TIF is up for discussion in March or April. For the record, Ms. Burd directed comments to the other taxing bodies and said that development should be encouraged in the proposed TIF area. She said she bought her property 30 years ago and the river is going down resulting in a shortage of fresh water. Adjournment There was no further business and the meeting adjourned at 4:34pm on a motion and second by Ms. Burd and Mr. Beltran, respectively. Respectfully transcribed by Marlys Young, Minute Taker 2 3 SECTION 2 [Sections 2 through 5 must be completed for each redevelopment project area listed in Section 1.] FY 2019 Name of Redevelopment Project Area (below): Primary Use of Redevelopment Project Area*: If "Combination/Mixed" List Component Types: Tax Increment Allocation Redevelopment Act 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 Statement setting forth all activities undertaken in furtherance of the objectives of the redevelopment plan, including any project implemented and a description of the redevelopment activities. [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 (labled 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 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 the municipality? [65 ILCS 5/11-74.4-5 (d) (8) (A) and 5/11-74.6-22 (d) (8) (A)] If yes, please enclose any Official Statement (labeled Attachment I). If Attachment I is answered yes, then the Analysis must be attached and (labeled Attachment J). x An 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 attachment I is yes, then Analysis MUST be attached and (labeled Attachment J). x Has a cumulative of $100,000 of TIF revenue been deposited 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 taxes revenue equal to or greater than $100,000 been made into the special tax allocation fund? [65 ILCS 5/11-74.4-5 (d) (9) and 5/11-74.6-22 (d) (9)] If yes, the audit report shall contain a letter from the independent certified public accountant indicating compliance or noncompliance with the requirements of subsection (q) of Section 11-74.4-3 (labeled Attachment L). x A list of all intergovernmental agreements in effect to which the municipality is a part, and an accounting of any money transferred or received by the municipality during that fiscal year pursuant to those intergovernmental agreements. [65 ILCS 5/11-74.4-5 (d) (10)] If yes, please enclose the list only, not actual agreements (labeled Attachment M). x Please utilize the information below to properly label the Attachments. Downtown Yorkville II ___X___ ______ * Types include: Central Business District, Retail, Other Commercial, Industrial, Residential, and Combination/Mixed. Commercial Under which section of the Illinois Municipal Code was Redevelopment Project Area designated? (check one): 4 FY 2019 Special Tax Allocation Fund Balance at Beginning of Reporting Period -$ SOURCE of Revenue/Cash Receipts: Revenue/Cash Receipts for Current Reporting Year Cumulative Totals of Revenue/Cash Receipts for life of TIF % of Total Property Tax Increment -$ -$ 0% State Sales Tax Increment -$ -$ 0% Local Sales Tax Increment -$ -$ 0% State Utility Tax Increment -$ -$ 0% Local Utility Tax Increment -$ -$ 0% Interest -$ -$ 0% Land/Building Sale Proceeds -$ -$ 0% Bond Proceeds -$ -$ 0% Transfers from Municipal Sources -$ -$ 0% Private Sources -$ -$ 0% Miscellaneous Income -$ -$ 0% All Amount Deposited in Special Tax Allocation Fund -$ Cumulative Total Revenues/Cash Receipts -$ 0% Total Expenditures/Cash Disbursements (Carried forward from Section 3.2) 2,736$ Transfers to Municipal Sources -$ Distribution of Surplus Total Expenditures/Disbursements 2,736$ Net/Income/Cash Receipts Over/(Under) Cash Disbursements (2,736)$ Previous Year Adjustment (Explain Below)-$ . FUND BALANCE, END OF REPORTING PERIOD*(2,736)$ * If there is a positive fund balance at the end of the reporting period, you must complete Section 3.3 Previous Year Explanation: SECTION 3.1 - (65 ILCS 5/11-74.4-5 (d)(5)(a)(b)(d)) and (65 ILCS 5/11-74.6-22 (d) (5)(a)(b)(d)) Provide an analysis of the special tax allocation fund. Downtown Yorkville II 5 FY 2019 TIF NAME: Amounts Reporting Fiscal Year Legal Services 2,736 2,736$ 2. Annual administrative cost. -$ 3. Cost of marketing sites. -$ -$ -$ -$ 1. Cost of studies, surveys, development of plans, and specifications. Implementation and administration of the redevelopment plan, staff and professional service cost. SECTION 3.2 A- (65 ILCS 5/11-74.4-5 (d) (5) (c) and 65 ILCS 5/11-74.6-22 (d) (5)(c)) Category of Permissible Redevelopment Cost [65 ILCS 5/11-74.4-3 (q) and 65 ILCS 5/11-74.6-10 (o)] PAGE 1 ITEMIZED LIST OF ALL EXPENDITURES FROM THE SPECIAL TAX ALLOCATION FUND (by category of permissible redevelopment project costs ) Downtown Yorkville II 4. Property assembly cost and site preparation costs. 5. Costs of renovation, rehabilitation, reconstruction, relocation, repair or remodeling of existing public or private building, leasehold improvements, and fixtures within a redevelopment project area. 6. Costs of the constructuion of public works or improvements. 6 -$ -$ -$ -$ -$ -$ 11. Cost of reimbursing school districts for their increased costs caused by TIF assisted housing projects. 12. Cost of reimbursing library districts for their increased costs caused by TIF assisted housing projects. 10. Capital costs. 7. Costs of eliminating or removing contaminants and other impediments. 8. Cost of job training and retraining projects. 9. Financing costs. PAGE 2 SECTION 3.2 A 7 -$ -$ -$ -$ -$ - -$ 2,736$ 17. Cost of day care services. TOTAL ITEMIZED EXPENDITURES 13. Relocation costs. 14. Payments in lieu of taxes. 15. Costs of job training, retraining, advanced vocational or career education. 16. Interest cost incurred by redeveloper or other nongovernmental persons in connection with a redevelopment project. SECTION 3.2 A PAGE 3 18. Other. 8 FY 2019 TIF NAME: Name Service Amount List all vendors, including other municipal funds, that were paid in excess of $10,000 during the current reporting year. Section 3.2 B Optional: Information in the following sections is not required by law, but would be helpful in creating fiscal transparency. Downtown Yorkville II 9 FY 2019 TIF NAME: FUND BALANCE BY SOURCE (2,736)$ 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)(2,736)$ SECTION 3.3 - (65 ILCS 5/11-74.4-5 (d) (5d) 65 ILCS 5/11-74.6-22 (d) (5d) Breakdown of the Balance in the Special Tax Allocation Fund At the End of the Reporting Period by source Downtown Yorkville II 10 FY 2019 TIF NAME:Downtown Yorkville II X Check here if 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: Provide a description of all property purchased by the municipality during the reporting fiscal year within the redevelopment project area. SECTION 4 [65 ILCS 5/11-74.4-5 (d) (6) and 65 ILCS 5/11-74.6-22 (d) (6)] 11 TIF Name: X TOTAL:11/1/99 to Date Estimated Investment for Subsequent Fiscal Year Total Estimated to Complete Project 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 Project 6*: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 1. NO projects were undertaken by the Municipality Within the Redevelopment Project Area. 2. The Municipality DID undertake projects within the Redevelopment Project Area. (If selecting this option, complete 2a.) 2a. The total number of ALL activities undertaken in furtherance of the objectives of the redevelopment plan: LIST ALL projects undertaken by the Municipality Within the Redevelopment Project Area: *PROJECT NAME TO BE LISTED AFTER PROJECT NUMBER Select ONE of the following by indicating an 'X': SECTION 5 - 20 ILCS 620/4.7 (7)(F) PAGE 1 FY 2019 Downtown Yorkville II Page 1 is to be included with TIF report. Pages 2 and 3 are to be included ONLY if projects are listed. 12 SECTION 6 FY 2019 TIF NAME: Year redevelopment project area was designated Base EAV Reporting Fiscal Year EAV 5/18/2018 4,487,777$ 4,487,777$ ___X___ SECTION 7 Provide information about job creation and retention: Number of Jobs Retained Number of Jobs Created Description and Type (Temporary or Permanent) of Jobs Total Salaries Paid -$ -$ -$ -$ -$ -$ -$ SECTION 8 Provide a general description of the redevelopment project area using only major boundaries: Optional: Information in the following sections is not required by law, but would be helpful in evaluating the performance of TIF in Illinois. *even though optional MUST be included as part of the complete TIF report Provide the base EAV (at the time of designation) and the EAV for the year reported for the redevelopment project area List all overlapping tax districts in the redevelopment project area. If overlapping taxing district received a surplus, list the surplus. Downtown Yorkville II Overlapping Taxing District Surplus Distributed from redevelopment project area to overlapping districts Check if the overlapping taxing districts did not receive a surplus. -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ The Downtown II TIF area is located primarily south of Hydraulic Avenue, just north of Washington Street, between White Oak Estate to the west and Benjamin Street to the east. -$ -$ -$ Enclosed enclosed enclosed Optional Documents Legal description of redevelopment project area Map of District 13 14 15 16 17 Mill StB e n j a m i n S t W Fox St State StDeer StHeustis StE Fox St E Van Emmon St Beaver St W Ridge St Morgan StE Orange St Adrian StW Madison St Blaine St Elizabeth St Colonial Pkwy W River St Badger StE Washington St Garden St Illini Dr Wolf St Crooked Creek DrAdams StGawne Ln W Van Emmon St W Orange St Wooden Bridge DrWalsh DrOlsen St Walter St E Barberry CirE Hydraulic Ave Wood Sage AveE Ridge St Worsley StDydyna CtW Hydraulic Ave Garden CirW Dolph St Bator StCornersto n e D r W Was hi n gt o n St W Beecher St Rodak St Buhrma st er Ct Illini CtState StMorgan StW Hydraulic Ave S Main StW Dolph St W Washington St S Bridge StS Bridge StSc h o o l h o u s e R d Sc h o o l h o u s e R d 47 126 Fox River LEGEND Downtown Redevelopment Project Area #2 Boundary Downtown Redevelopment Project Area #2 Parcels N All map data provided by the City of Yorkville Community Development Department. October 2017. LEGEND Downtown Redevelopment Project Area #1 Boundary Parcels Added From Project Area #1 into Project Area #2 N All map data provided by the City of Yorkville Community Development Department. October 2017. Downtown Redevelopment Project Area #2 Boundary Remaining Downtown Redevelopment Project Area #1 Parcels Additional Downtown Redevelopment Project Area #2 Parcels 18 19 20 Unit Code 047/035/30 Attachment D Activities Statement Downtown Yorkville II The second TIF in the downtown area was created on May 18, 2018, for the purposes of enhancing the performance of the original downtown redevelopment area. The new Downtown TIF II is comprised of underperforming parcels from the original Downtown TIF, in addition to some new parcels, which expanded the overall size of the redevelopment area. By establishing a second TIF, these underperforming parcels now have a greater period of time to generate increment. Furthermore, TIF’s that share a boundary may also distribute funds between them. The new Downtown TIF did not receive any incremental property taxes in the current fiscal year, but did incur expenditures related to legal cost in the amount of $2,736. Looking ahead to the upcoming fiscal year, the new Downtown TIF is expected to generate incremental property taxes of approximately $25,000. 21 UNITED CITY OF YORKVILLE, ILLINOIS TAX INCREMENTAL FINANCING DISTRICTS FINANCIAL AND COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED APRIL 30, 2019 22 INDEPENDENT AUDITORS’ REPORT 23 INDEPENDENT AUDITORS' REPORT September 20, 2019 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 Countryside, Downtown and Downtown II Tax Incremental Financing Districts of the United City of Yorkville, Illinois as of and for the year ended April 30, 2019, which collectively comprise the Countryside, Downtown and Downtown II 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 Countryside, Downtown and Downtown II 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 Countryside, Downtown and Downtown II Tax Incremental Financing Districts of the United City of Yorkville, Illinois as of April 30, 2019, and the results of its operations for the year then ended in conformity with accounting principles generally accepted in the United States of America. We have also issued a report dated September 20, 2019 on our consideration of the Countryside, Downtown and Downtown II Tax Incremental Financing Districts’ compliance with laws, regulations, contracts and grants. Lauterbach & Amen, LLP LAUTERBACH & AMEN, LLP 24 FINANCIAL STATEMENTS 25 UNITED CITY OF YORKVILLE, ILLINOIS TAX INCREMENTAL FINANCING DISTRICTS Balance Sheet April 30, 2019 Downtown Downtown TIF TIF II Cash and Investments $- - - Accounts - 17 - Total Assets - 17 - Liabilities Accounts Payable - 94,639 161 Due to Other Funds 422,459 929,896 2,575 Total Liabilities 422,459 1,024,535 2,736 Fund Balances Unassigned (422,459)(1,024,518)(2,736) Total Liabilities and Fund Balances - 17 - Countryside TIF LIABILITIES FUND BALANCES ASSETS The notes to the financial statements are an integral part of this statement. 26 UNITED CITY OF YORKVILLE, ILLINOIS TAX INCREMENTAL FINANCING DISTRICTS Statement of Revenues, Expenditures and Changes in Fund Balance For the Fiscal Year Ended April 30, 2019 Downtown Downtown TIF TIF II Revenues Taxes Property Taxes $198,918 78,434 - Expenditures General Government Administration Fees 11,049 31,533 - Professional Services 498 294 - Legal Services - 3,445 2,736 TIF Incentive Payout - 22,108 - Capital Outlay Project Costs - 105,516 - Downtown Streetscape Improvement 25,468 Route 47 Expansion - 7,482 - Debt Service Principle Retirement 42,332 200,000 - Interest and Fiscal Charges 107,679 25,801 - Total Expenditures 161,558 421,647 2,736 Net Change in Fund Balances 37,360 (343,213)(2,736) Fund Balances - Beginning (459,819)(681,305)- Fund Balances - Ending (422,459)(1,024,518)(2,736) Countryside TIF The notes to the financial statements are an integral part of this statement. 27 UNITED CITY OF YORKVILLE, ILLINOIS TAX INCREMENTAL FINANCING DISTRICTS Notes to the Financial Statements April 30, 2019 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The operations of Countryside, Downtown and Downtown II 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. 28 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS September 20, 2019 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 Countryside, Downtown and Downtown II Tax Incremental Financing Districts of the United City of Yorkville, Illinois, as of and for the year ended April 30, 2019, and have issued our report thereon dated September 20, 2019. 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 than these specified parties. Lauterbach & Amen, LLP LAUTERBACH & AMEN, LLP 29