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Joint Review Board Packet - Downtown 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 Tax Increment Financing Redevelopment Project Area will be convened on November 12, 2019 at 3:05 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 REDEVELOPMENT PROJECT AREA November 12, 2019 United City of Yorkville 3:05 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 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 2019 Joint Review Board .............................................................................. 1 Downtown TIF Report ............................................................................................................................... 3 Certification of Chief Executive Officer ................................................................................................. 16 Legal Council Opinion ............................................................................................................................ 17 Activities Statement ................................................................................................................................ 18 Audited Financial Statements ................................................................................................................. 19 Auditor Compliance Letter ..................................................................................................................... 26 This page intentionally left blank. ANNUAL JOINT REVIEW BOARD UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS DOWNTOWN REDEVELOPMENT PROJECT AREA Tuesday, December 11, 2018 3:05pm City Hall Conference Room 800 Game Farm Rd., Yorkville, IL Call Meeting to Order The meeting was called to order at 3:12pm by City Administrator Bart Olson. Roll Call Roll call was taken in the immediately preceding meeting. Present: Kendall County, Scott Koeppel City of Yorkville, Bart Olson Waubonsee Community College, Sarah Orth Bristol Kendall Fire Protection District, James Bateman Bristol Kendall Fire Protection District, Tom Lindblom Absent: Kendall Township representative Yorkville School District #115 representative Others Present: City Attorney, Kathleen Orr Cit y of Yorkville, Assistant City Administrator Erin Willrett City of Yorkville, Finance Director Rob Fredrickson City of Yorkville, Community Development Director Krysti Barksdale-Noble Motion to Elect or Re-elect Public Member Member James Bateman was chosen as Public Member in the immediately preceding meeting. Motion to Elect or Re-elect Chairperson Bart Olson was re-elected as Chairman in immediately preceding meeting. Minutes for Approval The minutes from the December 12, 2017 meeting were approved on a unanimous voice vote following a motion by Mr. Lindblom and second by Mr. Koeppel. 1 Review of Annual Report for the Downtown Redevelopment Project (Area #1) Mr. Fredrickson highlighted the Fund activity from the annual report and commented briefly on the primary project expenses which included the Van Emmon property purchase and also soil remediation near Riverfront Park. Mr. Koeppel and Ms. Orth moved and seconded respectively, to approve this report. Approved on unanimous voice vote. (Below items discussed simultaneously) Questions, Comments from the Board Discussion, Deliberation and Recommendation Mr. Olson presented a map with the boundaries of TIF #1 and Downtown TIF #2 (just created). He said the first inducement resolution will be considered at the Council meeting this evening. He said Imperial Investments is interested in purchasing the Farm Bureau property just east of the Law Office property and is working on Brownfield soil remediation grants. Mr. Olson said property owned by Imperial Investments in TIF #1, is slated for 75 homes, however, no request has been made for TIF incentives for that project. Mr. Lindblom noted that BKFD opposes the project due to only one entry/exit for the subdivision. Ms. Noble said a secondary access is being considered. Mr. Koeppel asked if there is a plan for the bank building. There are currently no plans and a building master plan study is going out for RFP. This TIF ends in 2029 and the City will possibly request an extension. Adjournment There was no further business and Mr. Olson adjourned the meeting at 3:20pm. 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 $100,000 been made into the special tax allocation fund? [65 ILCS 5/11-74.4-5 (d) (9) and 5/11-74.6-22 (d) (9)] If yes, the audit report shall contain a letter from the independent certified public accountant indicating compliance or noncompliance with the requirements of subsection (q) of Section 11-74.4-3 (labeled Attachment L). x A list of all intergovernmental agreements in effect to which the municipality is a part, and an accounting of any money transferred or received by the municipality during that fiscal year pursuant to those intergovernmental agreements. [65 ILCS 5/11-74.4-5 (d) (10)] If yes, please enclose the list only, not actual agreements (labeled Attachment M). x Please utilize the information below to properly label the Attachments. Downtown Yorkville ___X___ ______ * Types include: Central Business District, Retail, Other Commercial, Industrial, Residential, and Combination/Mixed. Commercial Under which section of the Illinois Municipal Code was Redevelopment Project Area designated? (check one): 4 FY 2019 Special Tax Allocation Fund Balance at Beginning of Reporting Period (681,305)$ 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 78,434$ 781,681$ 99% State Sales Tax Increment -$ -$ 0% Local Sales Tax Increment -$ -$ 0% State Utility Tax Increment -$ -$ 0% Local Utility Tax Increment -$ -$ 0% Interest -$ 612$ 0% Land/Building Sale Proceeds -$ -$ 0% Bond Proceeds -$ -$ 0% Transfers from Municipal Sources -$ -$ 0% Private Sources -$ -$ 0% Miscellaneous Income -$ 5,612$ 1% All Amount Deposited in Special Tax Allocation Fund 78,434$ Cumulative Total Revenues/Cash Receipts 787,905$ 100% Total Expenditures/Cash Disbursements (Carried forward from Section 3.2) 421,647$ Transfers to Municipal Sources -$ Distribution of Surplus Total Expenditures/Disbursements 421,647$ Net/Income/Cash Receipts Over/(Under) Cash Disbursements (343,213)$ Previous Year Adjustment (Explain Below)-$ . FUND BALANCE, END OF REPORTING PERIOD*(1,024,518)$ * 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 5 FY 2019 TIF NAME: Amounts Reporting Fiscal Year Legal Services 3,466 Auditing Services - TIF Compliance Report 265 Developer Incentive 22,108 Public Meeting Notices & Postage 7 Downtown Overlay District 34,351 Administrative Costs 31,533 91,730$ 2. Annual administrative cost. -$ 3. Cost of marketing sites. -$ -$ Improvements to Buildings 14,137 14,137$ IL Rte 47 Expansion 7,482 Downtown Streetscape Improvements 25,468 Sidewalks - East Alley / S. Main & Van Emmon 20,411 Downtown Wayfinding Signage 36,619 89,980$ 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 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 -$ -$ Principal 200,000 Interest 25,800 225,800$ -$ -$ -$ 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 -$ -$ -$ -$ -$ - -$ 421,647$ 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 Farr Assocaites Downtown Overlay 34,350.66$ Illinois Department of Transportation Downtown Streetscape Imprv 25,468.39$ First National Bank Van Emmon Activity Center Loan 225,800.00$ Michael's Signs Downtown Wayfinding Signage 36,618.75$ List all vendors, including other municipal funds, that were paid in excess of $10,000 during the current reporting year. Section 3.2 B Optional: Information in the following sections is not required by law, but would be helpful in creating fiscal transparency. Downtown Yorkville 9 FY 2019 TIF NAME: FUND BALANCE BY SOURCE (1,024,518)$ Amount of Original Issuance Amount Designated 1. Description of Debt Obligations Van Emmon Activity Center Loan 800,000$ 600,000$ Total Amount Designated for Obligations 800,000$ 600,000$ 2. Description of Project Costs to be Paid IL Route 47 Expansion 25,584$ Imperial Investments Redevelopment Phase 1 1,515,882$ Total Amount Designated for Project Costs 1,541,466$ TOTAL AMOUNT DESIGNATED 2,141,466$ SURPLUS/(DEFICIT)(3,165,984)$ 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 10 FY 2019 TIF NAME:Downtown Yorkville 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):Old Bank Building Street address:102 East Van Emmon Street Approximate size or description of property:14,000 square feet Purchase price:1,170,000.00 Seller of property:Imperial Investments 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 16 TOTAL:11/1/99 to Date Estimated Investment for Subsequent Fiscal Year Total Estimated to Complete Project Private Investment Undertaken (See Instructions)6,445,805$ -$ 6,445,805$ Public Investment Undertaken 286,184$ 1,515,882$ 1,758,335$ Ratio of Private/Public Investment 22 45/86 3 2/3 Project 1*: Landscaping Private Investment Undertaken (See Instructions)-$ -$ -$ Public Investment Undertaken 24,063$ -$ 24,063$ Ratio of Private/Public Investment 0 0 Project 2*: IL Route 47 Expansion Private Investment Undertaken (See Instructions)-$ -$ -$ Public Investment Undertaken 61,347$ 32,153$ 93,500$ Ratio of Private/Public Investment 0 0 Project 3*: Downtown Streetscape Improvement Private Investment Undertaken (See Instructions)-$ -$ -$ Public Investment Undertaken 128,972$ -$ 128,972$ Ratio of Private/Public Investment 0 0 Project 4*: Paving of Downtown Parking Lots Private Investment Undertaken (See Instructions)-$ -$ -$ Public Investment Undertaken 18,321$ -$ 18,321$ Ratio of Private/Public Investment 0 0 Project 5*: Painting of Pump House Private Investment Undertaken (See Instructions)-$ -$ -$ Public Investment Undertaken 9,750$ -$ 9,750$ Ratio of Private/Public Investment 0 0 Project 6*: 101 E Van Emmon (Imperial Investments) Private Investment Undertaken (See Instructions)129,697$ -$ 129,697$ Public Investment Undertaken 928$ 31,496$ 31,496$ Ratio of Private/Public Investment 139 19/25 4 2/17 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 Page 1 is to be included with TIF report. Pages 2 and 3 are to be included ONLY if projects are listed. 12 Project 7*: 210 Van Emmon Apartments (Imperial Investments) Private Investment Undertaken (See Instructions)671,880$ -$ 671,880$ Public Investment Undertaken 4,809$ 163,161$ 163,161$ Ratio of Private/Public Investment 139 5/7 4 2/17 Project 8*: 217 Bridge Street (Imperial Investments) Private Investment Undertaken (See Instructions)315,643$ -$ 315,643$ Public Investment Undertaken 1,353$ 45,895$ 45,895$ Ratio of Private/Public Investment 233 23/79 6 43/49 Project 9*: 219 Bridge Street (Imperial Investments) Private Investment Undertaken (See Instructions)176,916$ -$ 176,916$ Public Investment Undertaken 371$ 12,601$ 12,601$ Ratio of Private/Public Investment 476 69/80 14 1/25 Project 10*: 101 E Van Emmon & 219 Bridge Street (Imperial Investments) Private Investment Undertaken (See Instructions)384,817$ -$ 384,817$ Public Investment Undertaken 2,644$ 89,710$ 89,710$ Ratio of Private/Public Investment 145 25/46 4 11/38 Project 11*: 211-215 Bridge Street (Imperial Investments) Private Investment Undertaken (See Instructions)1,075,512$ -$ 1,075,512$ Public Investment Undertaken 7,573$ 256,930$ 256,930$ Ratio of Private/Public Investment 142 1/52 4 8/43 Project 12*: 201-209 Bridge Street (Imperial Investments) Private Investment Undertaken (See Instructions)1,595,404$ -$ 1,595,404$ Public Investment Undertaken 11,324$ 384,201$ 384,201$ Ratio of Private/Public Investment 140 55/62 4 9/59 Project 13*: 102 E Van Emmon (Imperial Investments) Private Investment Undertaken (See Instructions)1,154,508$ -$ 1,154,508$ Public Investment Undertaken 8,200$ 278,211$ 278,211$ Ratio of Private/Public Investment 140 50/63 4 3/20 Project 14*: 202-210 Van Emmon & 306-308 Heustis Apartments & Townhomes (Imperial Investments) Private Investment Undertaken (See Instructions)146,202$ -$ 146,202$ Public Investment Undertaken 1,046$ 35,504$ 35,504$ Ratio of Private/Public Investment 139 17/22 4 2/17 Project 15*: 220 S Bridge Private Investment Undertaken (See Instructions)385,874$ -$ 385,874$ Public Investment Undertaken 2,622$ 88,965$ 88,965$ Ratio of Private/Public Investment 147 1/6 4 28/83 PAGE 2 **ATTACH ONLY IF PROJECTS ARE LISTED** 13 Project 16*: 222 - 224 S Bridge Private Investment Undertaken (See Instructions)409,352$ -$ 409,352$ Public Investment Undertaken 2,861$ 97,055$ 97,055$ Ratio of Private/Public Investment 143 2/25 4 5/23 Project 17*: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 18*: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 19*: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 20*: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 21*: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 22*: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 23*: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 24*: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 25*: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 PAGE 3 **ATTACH ONLY IF PROJECTS ARE LISTED** 14 SECTION 6 FY 2019 TIF NAME: Year redevelopment project area was designated Base EAV Reporting Fiscal Year EAV 6/13/2006 5,745,902$ 4,950,617$ ___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 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 TIF area is located primarily along Hydraulic Avenue, Illinois Route 47 and Benjamin Street within Yorkville's historical commercial core. -$ -$ -$ Enclosed previously provided previously provided Optional Documents Legal description of redevelopment project area Map of District 15 16 17 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. Over the last several fiscal years, the City has entered into several agreements with Imperial Investments for the redevelopment of several buildings in the downtown area. The downtown portion of the IL Route 47 expansion was completed in fiscal year 2015. This expansion is a joint project between the City and the Illinois Department of Transportation (IDOT), and includes 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 $100,000, which will be paid to the State over a period of ten years. In fiscal year 2018 the City acquired the former Old Second Bank building at 102 East Van Emmon Street, which has been converted into an activity center managed by the Recreation Department. In May of 20185 a second TIF was created in the downtown area, for the purposes of facilitating performance of the original redevelopment area. The new TIF is comprised of underperforming parcels from the original 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. In the current fiscal year, the installation of new streetlights in the downtown area was completed, with partial grant funding provided by the State of Illinois Integrated Transportation Enhancement Program (ITEP). In addition, the City installed wayfinding signage in the downtown area; completed sidewalk replacements in the east alley and on Main & Van Emmon Streets; and finished work on the downtown overlay district. Looking ahead to the upcoming fiscal year, the City will be working on a facade rehabilitation program, additional downtown signage and several tactical urbanism projects. 18 UNITED CITY OF YORKVILLE, ILLINOIS TAX INCREMENTAL FINANCING DISTRICTS FINANCIAL AND COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED APRIL 30, 2019 19 INDEPENDENT AUDITORS’ REPORT 20 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 21 FINANCIAL STATEMENTS 22 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. 23 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. 24 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. 25 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 26