Loading...
Joint Review Board Packet - Downtown II TIF 2020 11-24-20NOTICE 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 24, 2020 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 24, 2020 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 2020 Joint Review Board .............................................................................. 1 Downtown TIF II Report ........................................................................................................................... 3 Certification of Chief Executive Officer ................................................................................................. 14 Legal Counsel Opinion ........................................................................................................................... 15 Activities Statement ................................................................................................................................ 16 Redevelopment Agreement ..................................................................................................................... 17 Audited Financial Statements ................................................................................................................. 47 Auditor Compliance Letter ..................................................................................................................... 54 This page intentionally left blank. ANNUAL JOINT REVIEW BOARD UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS DOWNTOWN II REDEVELOPMENT PROJECT AREA #2 Tuesday, November 12, 2019 3:10pm City Hall Conference Room 800 Game Farm Rd., Yorkville, IL Call Meeting to Order The meeting was called to order at 3:16pm by Chairman/City Administrator Bart Olson. Roll Call Mr. Olson called the roll and established a quorum as follows: United City of Yorkville, Chairman/City Administrator Bart Olson-yes Kendall County, no representative Kendall Township, no representative Yorkville Community School Dist. #115, Lisa Banovetz-yes Waubonsee Junior College #516, Sara Orth-yes Bristol-Kendall Fire Protection District, James Bateman-yes Others Present: City Attorney Kathleen Orr City of Yorkville Assistant City Administrator Erin Willrett City of Yorkville Community Development Director Krysti Barksdale-Noble BKFD, Tom Lindblom Motion to Elect or Re-Elect a Public Member Tom Lindblom was elected Public Member in the previous meeting and will remain. Motion to Elect or Re-Elect a Chairperson Bart Olson was elected Chairperson in the previous meeting and will remain. Minutes for Approval Mr. Bateman questioned Ms. Burd being shown in the last meeting minutes as a Public Member who needed to live in the area of the TIF. Mr. Olson said the minutes were from the meeting prior to the ordinance creating the TIF district. Before the TIF is created, there must be someone on the Board who lives in the district. Ms. Orr added that since there were more than 75 units in the TIF, a housing report was needed, triggering the need for a resident of the district. It is the exception to the rule, she said. She said at the annual meeting, there are no votes, just reporting. Mr. Olson then entertained a motion to approve the February 13, 2018 minutes. So moved by Ms. Orth and seconded by Ms. Banovetz. Approved by unanimous voice vote. 1 Review of Annual Report for the Downtown II Redevelopment Project Area Mr. Fredrickson reported the TIF was created in FY 2019 with a beginning Fund Balance of zero. He also reported the expenditures. Ms. Orr added that the old jail is located in TIF #2. Questions, Comments from the Board None Discussion, Deliberation and Recommendation Mr. Olson said the old jail has an incentive agreement and he gave some details of the project. There are a couple inducement resolutions in place as well and he noted Kendallwood Estates may be removed from the TIF. The proposed facade program is in both TIF's. This TIF is 23 years and ends in 2042. Ms. Banovetz asked if it could close early if profitable, to which Mr. Olson replied it is possible. Public Comment None Adjournment There was no further business and the meeting adjourned at 3:26pm on a motion by Ms. Banovetz and second by Mr. Bateman. Unanimous voice vote approval. Respectfully transcribed by Marlys Young, Minute Taker 2 FY 2020 ANNUAL TAX INCREMENT FINANCE REPORT STATE OF ILLINOIS COMPTROLLER SUSANA A. MENDOZA Name of Municipality: United City of Yorkville Reporting Fiscal Year: County: Kendall Fiscal Year End: ------------ Unit Code: 047/035/30 FY 2020 TIF Administrator Contact Information First Name: Rob Last Name: Fredrickson 2020 4/30/2020 -------------------------------Address: 800 Game Farm Road Title: Finance Director Telephone: 630-553-8534 City: Yorkville Zip: E-mail--------- required rfredrickson@yorkville.il.us I attest to the best of my knowledge, that this FY 2020 report of the redevelopment project area(s) in the CityNillage of:United City of Yorkville, Illinois 60560 is complete and accurate pursuant to Tax Increment Allocation Redevelopment Act [65 ILCS 5/11-74.4-3 et. seq.] and or Industrial Jobs Recovery Law [65 ILCS 5/11-74.6-10 et. seq.]. ��� .. _;:;::=: ::o '-· ,,,J--.,, --------=>..,..,,...·· f.•·�z=.t Written signature of TIF Administrator bate Section 1 (65 ILCS 5/11-74.4-5 (d) (1.5) and 65 ILCS 5/11-74.6-22 (d) (1.5)*) FILL OUT ONE FOR EACH TIF DISTICT Name of Redevelopment Project Area Date Designated Date Terminated MM/DD/YYYY MM/DD/YYYY Project Area -Downtown Yorkville II 5/18/2018 *All statutory cItatIons refer to one of two sections of the Illinois Municipal Code: The Tax Increment Allocation Redevelopment Act [65 ILCS 5/11-7 4.4-3 et. seq.] or the Industrial Jobs Recovery Law [65 ILCS 5/11-74.6-10 et. seq.] 3 SECTION 2 [Sections 2 through 5 must be completed for each redevelopment project area listed in Section 1.] FY 2020 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 $100,000 been made into the special tax allocation fund? [65 ILCS 5/11-74.4-5 (d) (9) and 5/11-74.6-22 (d) (9)] If yes, the audit report shall contain a letter from the independent certified public accountant indicating compliance or noncompliance with the requirements of subsection (q) of Section 11-74.4-3 (labeled Attachment L). x A list of all intergovernmental agreements in effect to which the municipality is a part, and an accounting of any money transferred or received by the municipality during that fiscal year pursuant to those intergovernmental agreements. [65 ILCS 5/11- 74.4-5 (d) (10)] If yes, please enclose the list only, not actual agreements (labeled Attachment M). x Please utilize the information below to properly label the Attachments. Downtown Yorkville II x ______ * Types include: Central Business District, Retail, Other Commercial, Industrial, Residential, and Combination/Mixed. Commercial Commercial & Residential Under which section of the Illinois Municipal Code was Redevelopment Project Area designated? (check one): 4 FY 2020 Special Tax Allocation Fund Balance at Beginning of Reporting Period (2,736)$ 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 24,171$ 24,171$ 96% 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 1,000$ 1,000$ 4% Bond Proceeds -$ -$ 0% Transfers from Municipal Sources -$ -$ 0% Private Sources -$ -$ 0% Other (identify source _____________; if multiple other sources, attach schedule) -$ -$ 0% All Amount Deposited in Special Tax Allocation Fund 25,171$ Cumulative Total Revenues/Cash Receipts 25,171$ 100% Total Expenditures/Cash Disbursements (Carried forward from Section 3.2) 96,234$ Transfers to Municipal Sources -$ Distribution of Surplus Total Expenditures/Disbursements 96,234$ Net/Income/Cash Receipts Over/(Under) Cash Disbursements (71,063)$ Previous Year Adjustment (Explain Below)-$ . FUND BALANCE, END OF REPORTING PERIOD*(73,799)$ * 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 2020 TIF NAME: Amounts Reporting Fiscal Year Legal Services 13,481 Closing Costs - Old Jail 2,753 16,234$ 2. Annual administrative cost. -$ 3. Cost of marketing sites. -$ -$ Developer Incentive 80,000 80,000$ -$ 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. 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 6 -$ -$ -$ -$ -$ -$ 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 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. 7 -$ -$ -$ -$ -$ - -$ 96,234$ 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 2020 TIF NAME: Name Service Amount KCJ Restoration Developer Incentive 80,000.00$ Kathleen Field Orr & Associates Legal Services 10,208.75$ List all vendors, including other municipal funds, that were paid in excess of $10,000 during the current reporting year. Section 3.2 B Optional: Information in the following sections is not required by law, but would be helpful in creating fiscal transparency. Downtown Yorkville II 9 FY 2020 TIF NAME: FUND BALANCE BY SOURCE (73,799)$ Amount of Original Issuance Amount Designated 1. Description of Debt Obligations Total Amount Designated for Obligations -$ -$ 2. Description of Project Costs to be Paid KCJ Restoration Redevelopment 215,000$ Total Amount Designated for Project Costs 215,000$ TOTAL AMOUNT DESIGNATED 215,000$ SURPLUS/(DEFICIT)(288,799)$ 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 2020 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: Property (5): Street address: Approximate size or description of property: Purchase price: Seller of property: Property (6): Street address: Approximate size or description of property: Purchase price: Seller of property: Property (7): Street address: Approximate size or description of property: Purchase price: Seller of property: Property (8): 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 1 TOTAL:11/1/99 to Date Estimated Investment for Subsequent Fiscal Year Total Estimated to Complete Project Private Investment Undertaken (See Instructions)80,000$ 720,000$ 800,000$ Public Investment Undertaken 80,000$ 215,000$ 295,000$ Ratio of Private/Public Investment 1 2 42/59 Project 1*: Old Jail Rehab Private Investment Undertaken (See Instructions)80,000$ 720,000$ 800,000$ Public Investment Undertaken 80,000$ 215,000$ 295,000$ Ratio of Private/Public Investment 1 2 42/59 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 Select ONE of the following by indicating an 'X': SECTION 5 - 20 ILCS 620/4.7 (7)(F) PAGE 1 FY 2020 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. 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 12 SECTION 6 FY 2020 TIF NAME: Year redevelopment project area was designated Base EAV Reporting Fiscal Year EAV 5/18/2018 4,487,777$ 4,373,705$ 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: Enclosed previously provided previously provided Optional Documents Legal description of redevelopment project area Map of District -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Overlapping Taxing District Surplus Distributed from redevelopment project area to overlapping districts Check if the overlapping taxing districts did not receive a surplus. -$ 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 13 14 LAW OFFICE KATHLEEN FIELD ORR 2024 Hickory Road Suite 205 Homewood, Illinois 60430 312.382.2113 KATHLEEN FIELD ORR kfo@kfoassoc.com November 1, 2020 Susana A. Mendoza, State Comptroller Office of the State Comptroller Local Government Division 100 West Randolph Street, Suite 15-500 Chicago, Illinois 60601-3252 Re:Downtown Yorkville II Tax Increment Finance Redevelopment Project Area for the Fiscal Year Ending April 30, 2020 Dear State Comptroller: I, Kathleen Field Orr, am the Tax Increment Financing attorney for the United City of Yorkville, Kendall County, Illinois, and have been such throughout the fiscal year covered by this Report. I reviewed all of the information provided to me by the City Administration and I find that the United City of Yorkville, Illinois, has conformed with all of the applicable provisions of the Illinois Tax Increment Allocation Redevelopment Act. This opinion relates only to the time periods set forth and is based on all information available to me at the end of said fiscal year. Very truly yours. HLEEN FIELD ORR KFO/kms ATTACHMENT C 15 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 second Downtown TIF generated incremental property taxes for the first time in the current fiscal year, in an amount just under $25,000. In addition, the City sold the historic jail located on Madison Street within the TIF district and entered into an agreement with a developer to rehab the building for residential and commercial use. 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 UNITED CITY OF YORKVILLE, ILLINOIS DOWNTOWN TAX INCREMENTAL FINANCING DISTRICT II FINANCIAL AND COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED APRIL 30, 2020 47 INDEPENDENT AUDITORS’ REPORT 48 INDEPENDENT AUDITORS' REPORT October 8, 2020 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 Downtown Tax Incremental Financing District II of the United City of Yorkville, Illinois as of and for the year ended April 30, 2020, which collectively comprise the Downtown Tax Incremental Financing District II 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 Downtown Tax Incremental Financing District II 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 Downtown Incremental Financing District II of the United City of Yorkville, Illinois as of April 30, 2020, 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 October 8, 2020 on our consideration of the Downtown Tax Incremental Financing District II’s compliance with laws, regulations, contracts and grants. Lauterbach & Amen, LLP LAUTERBACH & AMEN, LLP 49 FINANCIAL STATEMENTS 50 UNITED CITY OF YORKVILLE, ILLINOIS DOWNTOWN TAX INCREMENTAL FINANCING DISTRICT II Balance Sheet April 30, 2020 Cash and Investments $ - Liabilities Due to Other Funds 73,799 Unassigned (73,799) Total Liabilities and Fund Balance - LIABILITIES FUND BALANCE ASSETS Downtown TIF II The notes to the financial statements are an integral part of this statement. 51 UNITED CITY OF YORKVILLE, ILLINOIS DOWNTOWN TAX INCREMENTAL FINANCING DISTRICT II Statement of Revenues, Expenditures and Changes in Fund Balance For the Fiscal Year Ended April 30, 2020 Revenues Taxes Property Taxes $24,171 Expenditures General Government Legal Services 13,462 Professional Services 2,772 TIF Incentive Payout 80,000 Total Expenditures 96,234 Excess (Deficiency) of Revenues Over (Under) Expenditures (72,063) Other Financing Sources Sale of Capital Assets 1,000 Net Change in Fund Balances (71,063) Fund Balances - Beginning (2,736) Fund Balances - Ending (73,799) Downtown TIF II The notes to the financial statements are an integral part of this statement. 52 UNITED CITY OF YORKVILLE, ILLINOIS DOWNTOWN TAX INCREMENTAL FINANCING DISTRICT II Notes to the Financial Statements April 30, 2020 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The operations of Downtown Tax Incremental Financing District II is 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. 53 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS October 8, 2020 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 Downtown Tax Incremental Financing District II of the United City of Yorkville, Illinois, as of and for the year ended April 30, 2020, and have issued our report thereon dated October 8, 2020. 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 District IIs 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 II, 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 54