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Joint Review Board Packet - Downtown TIF 2021 11-23-21NOTICE 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 Community 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 23, 2021 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/ Jori Behland, 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 23, 2021 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 2021 Joint Review Board .............................................................................. 1 Downtown TIF Report ............................................................................................................................... 3 Certification of Chief Executive Officer ................................................................................................. 15 Legal Counsel Opinion ........................................................................................................................... 16 Activities Statement ................................................................................................................................ 17 Audited Financial Statements ................................................................................................................. 18 Auditor Compliance Letter ..................................................................................................................... 25 This page intentionally left blank. ANNUAL JOINT REVIEW BOARD UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS DOWNTOWN REDEVELOPMENT PROJECT AREA Tuesday, November 24, 2020 3:05pm City Hall Council Chambers 800 Game Farm Rd., Yorkville, IL 60560 NOTE: In accordance with Public Act 101-0640 and Gubernatorial Disaster Proclamation issued by Governor Pritzker pursuant to the powers vested in the Governor under the Illinois Emergency Management Agency Act, the United City of Yorkville is encouraging social distancing by allowing remote attendance for the Joint Review Board meetings, due to the current pandemic. 1.Call the Meeting to Order The meeting was called to order at 3:12pm by Chairman/City Administrator Bart Olson. (All of the below attendees were by remote means, except Bart Olson who was in-person) 2. Roll Call The following facts were agreed to by Board members prior to this meeting being called to order: they would consider that roll call had already been taken in the previous meeting, School District #115 and Kendall Township reps were not in attendance, the same Public Member would remain and Bart Olson would be the Chairperson. City of Yorkville, Bart Olson Kendall County, Matt Asselmeier Kendall Township, no representative Yorkville School District #115, no representative Waubonsee Community College, Sarah Orth Bristol Kendall Fire Protection District, James Bateman, Tom Lindblom Others Present: City Attorney, Kathleen Orr City of Yorkville, Finance Director Rob Fredrickson City of Yorkville, Community Development Director Krysti Barksdale-Noble 3. Motion to Elect or Re-elect a Public Member Public Member Krysti Barksdale-Noble was selected in the immediately preceding meeting. 4. Motion to Elect or Re-elect a Chairperson Bart Olson was re-elected as Chairman in the preceding meeting. 1 5. Minutes for Approval Mr. Olson entertained a motion to approve the previous meeting minutes of November 12, 2019. So moved by BKFD representatives and seconded by Ms. Orth. Approved on a unanimous roll call vote: Bateman-yes, Orth-yes, Olson-yes, Asselmeier-yes. Carried 4-0. 6.Review of Annual Report for the Downtown Redevelopment Project Area Mr. Fredrickson referred to the summary and revenue figures in the report. He also reviewed the various projects within this area including the Rt. 47 project and Van Emmon building acquisition and said some parcels were removed for a new TIF. 7. Questions, Comments from the Board None 8. Discussion, Deliberation and Recommendations Mr. Olson provided an update on this TIF #1 which is set to expire in 2029. He said discussions have been held to extend this TIF, however, the project has stalled due to the pandemic. He does not anticipate any other TIF agreements, though a couple other developers have acquired property in the last year. Mr. Asselmeier asked if the Crusade Burger Bar is in this TIF and if funds can be used to assist those businesses due to the pandemic. Mr. Olson said there is already a deficit in the downtown TIF's and Ms. Orr replied that TIF funds cannot be used for that purpose, only for capital improvements to increase the tax base. 9. Public Comment None 10. Adjournment There was no further business and Mr. Olson entertained a motion for adjournment (no motion/second was heard on the recording). Roll call vote: Asselmeier-yes, Olson-yes, Orth- yes, Bateman-yes, Noble-yes. Carried 5-0. Adjourned at 3:21pm. 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 2021 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 $100,000 been made into the special tax allocation fund? [65 ILCS 5/11-74.4-5 (d) (9) and 5/11-74.6-22 (d) (9)] If yes, the audit report shall contain a letter from the independent certified public accountant indicating compliance or noncompliance with the requirements of subsection (q) of Section 11-74.4-3 (labeled Attachment L). x A list of all intergovernmental agreements in effect to which the municipality is a part, and an accounting of any money transferred or received by the municipality during that fiscal year pursuant to those intergovernmental agreements. [65 ILCS 5/11- 74.4-5 (d) (10)] If yes, please enclose the list only, not actual agreements (labeled Attachment M). x Please utilize the information below to properly label the Attachments. Downtown Yorkville x ______ * Types include: Central Business District, Retail, Other Commercial, Industrial, Residential, and Combination/Mixed. Combination/Mixed Under which section of the Illinois Municipal Code was Redevelopment Project Area designated? (check one): 4 FY 2021 Special Tax Allocation Fund Balance at Beginning of Reporting Period (1,237,549)$ 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 70,677$ 928,117$ 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 70,677$ Cumulative Total Revenues/Cash Receipts 934,341$ 100% Total Expenditures/Cash Disbursements (Carried forward from Section 3.2) 282,057$ Transfers to Municipal Sources -$ Distribution of Surplus Total Expenditures/Disbursements 282,057$ Net/Income/Cash Receipts Over/(Under) Cash Disbursements (211,380)$ Previous Year Adjustment (Explain Below)-$ . FUND BALANCE, END OF REPORTING PERIOD*(1,448,929)$ * 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 2021 TIF NAME: Amounts Reporting Fiscal Year Legal Services 410 Auditing Services - TIF Compliance Report 204 Administrative Costs 33,487 Engineering Services 979 35,080$ 2. Annual administrative cost. -$ 3. Cost of marketing sites. -$ -$ Developer Incentive 27,256 27,256$ IL Rte 47 Expansion 7,488 7,488$ 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 6 -$ -$ Principal 200,000 Interest 12,233 212,233$ -$ -$ -$ 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 -$ -$ -$ -$ -$ -$ 282,057$ 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 2021 TIF NAME: Name Service Amount First National Bank Van Emmon Activity Center Loan 212,233.33$ Imperial Investments Developer Incentive 27,255.91$ List all vendors, including other municipal funds, that were paid in excess of $10,000 during the current reporting year. Section 3.2 B Optional: Information in the following sections is not required by law, but would be helpful in creating fiscal transparency. Downtown Yorkville 9 FY 2021 TIF NAME: FUND BALANCE BY SOURCE (1,448,929)$ Amount of Original Issuance Amount Designated 1. Description of Debt Obligations Van Emmon Activity Center Loan 800,000$ 206,083$ Total Amount Designated for Obligations 800,000$ 206,083$ 2. Description of Project Costs to be Paid IL Route 47 Expansion 10,791$ Imperial Investments Redevelopment Phase 1 1,364,446$ Total Amount Designated for Project Costs 1,375,237$ TOTAL AMOUNT DESIGNATED 1,581,320$ SURPLUS/(DEFICIT)(3,030,249)$ 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 2021 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: 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 15 TOTAL:11/1/99 to Date Estimated Investment for Subsequent Fiscal Year Total Estimated to Complete Project Private Investment Undertaken (See Instructions)6,441,652$ -$ 6,441,652$ Public Investment Undertaken 426,415$ 1,375,237$ 1,801,652$ Ratio of Private/Public Investment 15 5/47 3 42/73 Project 1*: 222 - 224 S Bridge Private Investment Undertaken (See Instructions)404,599$ -$ 404,599$ Public Investment Undertaken 10,477$ 88,251$ 98,728$ Ratio of Private/Public Investment 38 13/21 4 5/51 Project 2*: IL Route 47 Expansion Private Investment Undertaken (See Instructions)-$ -$ -$ Public Investment Undertaken 83,330$ 10,791$ 94,121$ Ratio of Private/Public Investment 0 0 Project 3*: Downtown Streetscape Improvement Private Investment Undertaken (See Instructions)-$ -$ -$ Public Investment Undertaken 153,035$ -$ 153,035$ Ratio of Private/Public Investment 0 0 Project 4*: Downtown Parking Lot Improvements Private Investment Undertaken (See Instructions)-$ -$ -$ Public Investment Undertaken 18,321$ -$ 18,321$ Ratio of Private/Public Investment 0 0 Project 5*: Improvements to 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 3,441$ 28,984$ 32,424$ Ratio of Private/Public Investment 37 25/36 4 Select ONE of the following by indicating an 'X': SECTION 5 - 20 ILCS 620/4.7 (7)(F) PAGE 1 FY 2021 Downtown Yorkville 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 Project 7*: 210 Van Emmon Apartments (Imperial Investments) Private Investment Undertaken (See Instructions)671,880$ -$ 671,880$ Public Investment Undertaken 17,824$ 150,146$ 167,970$ Ratio of Private/Public Investment 37 25/36 4 Project 8*: 217 Bridge Street (Imperial Investments) Private Investment Undertaken (See Instructions)315,643$ -$ 315,643$ Public Investment Undertaken 5,014$ 42,234$ 47,248$ Ratio of Private/Public Investment 62 21/22 6 49/72 Project 9*: 219 Bridge Street (Imperial Investments) Private Investment Undertaken (See Instructions)176,916$ -$ 176,916$ Public Investment Undertaken 1,377$ 11,596$ 12,973$ Ratio of Private/Public Investment 128 35/68 13 51/80 Project 10*: 101 E Van Emmon & 219 Bridge Street (Imperial Investments) Private Investment Undertaken (See Instructions)384,817$ -$ 384,817$ Public Investment Undertaken 9,800$ 82,554$ 92,354$ Ratio of Private/Public Investment 39 17/64 4 1/6 Project 11*: 211-215 Bridge Street (Imperial Investments) Private Investment Undertaken (See Instructions)1,075,512$ -$ 1,075,512$ Public Investment Undertaken 28,068$ 236,435$ 264,503$ Ratio of Private/Public Investment 38 7/22 4 1/15 Project 12*: 201-209 Bridge Street (Imperial Investments) Private Investment Undertaken (See Instructions)1,595,404$ -$ 1,595,404$ Public Investment Undertaken 41,972$ 353,554$ 395,526$ Ratio of Private/Public Investment 38 1/89 4 3/89 Project 13*: 102 E Van Emmon (Imperial Investments) Private Investment Undertaken (See Instructions)1,154,508$ -$ 1,154,508$ Public Investment Undertaken 30,393$ 256,018$ 286,411$ Ratio of Private/Public Investment 37 70/71 4 3/97 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 3,879$ 32,672$ 36,550$ Ratio of Private/Public Investment 37 25/36 4 Project 15*: 220 S Bridge Private Investment Undertaken (See Instructions)386,474$ -$ 386,474$ Public Investment Undertaken 9,735$ 82,002$ 91,737$ Ratio of Private/Public Investment 39 7/10 4 10/47 PAGE 2 **ATTACH ONLY IF PROJECTS ARE LISTED** 13 SECTION 6 FY 2021 TIF NAME: Year redevelopment project area was designated Base EAV Reporting Fiscal Year EAV 6/13/2006 5,745,902$ 3,887,008$ 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 14 15 LAW OFFICE KATHLEEN FIELD ORR 2024 Hickory Road Suite 205 Homewood, Illinois 60430 312.382.2113 KATHLEEN FIELD ORR kfo@kfoassoc.com October 25, 2021 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 Tax Increment Finance Redevelopment Project Area for the Fiscal Year Ending April 30t 2021 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 ymH*s, KATHLEEN FIELD ORR KFO/kms ATTACHMENT C 16 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. As of April 30, 2021, outstanding principal for 102 East Van Emmon Loan was $200,000. During the current fiscal year, the TIF district paid $212,233 in principal and interest on the outstanding loan. In May of 2018 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. Fiscal Year 2019 saw the installation of new streetlights in the downtown area, 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. 17 UNITED CITY OF YORKVILLE, ILLINOIS DOWNTOWN TAX INCREMENTAL FINANCING DISTRICT FINANCIAL AND COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED APRIL 30, 2021 18 INDEPENDENT AUDITORS’ REPORT 19 INDEPENDENT AUDITORS' REPORT October 19, 2021 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 of the United City of Yorkville, Illinois as of and for the year ended April 30, 2021, which collectively comprise the Downtown Tax Incremental Financing District 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 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 of the United City of Yorkville, Illinois as of April 30, 2021, 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 19, 2021 on our consideration of the Downtown Tax Incremental Financing District’s compliance with laws, regulations, contracts and grants. Lauterbach & Amen, LLP LAUTERBACH & AMEN, LLP 20 FINANCIAL STATEMENTS 21 UNITED CITY OF YORKVILLE, ILLINOIS DOWNTOWN TAX INCREMENTAL FINANCING DISTRICT Balance Sheet April 30, 2021 Cash and Investments $- Liabilities Due to Other Funds 1,448,929 Unassigned (1,448,929) Total Liabilities and Fund Balance - LIABILITIES FUND BALANCE ASSETS Downtown TIF The notes to the financial statements are an integral part of this statement. 22 UNITED CITY OF YORKVILLE, ILLINOIS DOWNTOWN TAX INCREMENTAL FINANCING DISTRICT Statement of Revenues, Expenditures and Changes in Fund Balance For the Fiscal Year Ended April 30, 2021 Revenues Taxes Property Taxes $70,677 Expenditures General Government Administration Fees 33,487 TIF Incentive Payout 27,256 Professional Services 204 Legal Services 410 Capital Outlay Project Costs 979 Route 47 Expansion 7,488 Debt Service Principal Retirement 200,000 Interest and Fiscal Charges 12,233 Total Expenditures 282,057 Net Change in Fund Balances (211,380) Fund Balances - Beginning (1,237,549) Fund Balances - Ending (1,448,929) Downtown TIF The notes to the financial statements are an integral part of this statement. 23 UNITED CITY OF YORKVILLE, ILLINOIS DOWNTOWN TAX INCREMENTAL FINANCING DISTRICT Notes to the Financial Statements April 30, 2021 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The operations of Downtown Tax Incremental Financing District 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. 24 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS October 19, 2021 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 of the United City of Yorkville, Illinois, as of and for the year ended April 30, 2021, and have issued our report thereon dated October 19, 2021. 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 25