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Joint Review Board Packet - Countryside TIF 2023 11-28-23NOTICE OF ANNUAL MEETING OF JOINT REVIEW BOARD Bristol-Kendall Fire Protection District 103 East Beaver Street Yorkville, Illinois 60560 Bristol Township 9075 Corneils Bristol, Illinois 60512 Yorkville School Community Unit #115 602-A Center Parkway Kendall County 111 West Fox Street Yorkville, Illinois 60560 United City of Yorkville 651 Prairie Pointe Drive Yorkville, Illinois 60560 Waubonsee Community College #516 Route 47 at Waubonsee Drive 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 US Route 34/IL Route 47 Countryside Redevelopment Project Area will be convened on November 28, 2023 at 3:30 p.m. at the United City of Yorkville City Hall, 651 Prairie Pointe Drive, 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 US Route 34/IL Route 47 Countryside Shopping Center 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 US RTE 34 & IL RTE 47 COUNTRYSIDE REDEVELOPMENT PROJECT AREA November 28, 2023 United City of Yorkville 3:30 p.m. 651 Prairie Pointe Drive Yorkville, Illinois 60560 1. Call the Meeting to Order 2. Roll Call: United City of Yorkville Bristol Township Kendall County 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 US Rte 34 & IL Rte 47 Countryside 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 2022 Joint Review Board .............................................................................. 1 US Route 34 & IL Route 47 (Countryside) TIF Report .......................................................................... 3 Certification of Chief Executive Officer ................................................................................................. 16 Legal Counsel Opinion ........................................................................................................................... 17 Activities Statement ................................................................................................................................ 18 Audited Financial Statements ................................................................................................................. 19 Auditor Compliance Letter ..................................................................................................................... 27 This page intentionally left blank. ANNUAL JOINT REVIEW BOARD UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS US RTE 34 & IL RTE 47 COUNTRYSIDE REDEVELOPMENT PROJECT AREA Tuesday, November 22, 2022 3:30pm City Hall Conference Room 800 Game Farm Rd., Yorkville, IL 60560 1. Call Meeting to Order The meeting was called to order at 3:30pm by Attorney Kathleen Field Orr. 2. Roll Call Ms. Orr took roll call as follows: United City of Yorkville, Finance Director Rob Fredrickson Waubonsee Community College District #516, no representative Bristol-Kendall Fire Protection District, James Bateman and Tom Lindblom Bristol Township, no representative Yorkville School District #115, no representative Others Present: City of Yorkville, Community Development Director Krysti Barksdale-Noble 3. Motion to Elect or Re-elect Public Member Ms. Orr stated no one would be elected since no vote will take place. 4. Motion to Elect or Re-elect Chairperson None elected. 5. Minutes for Approval Motion by Mr. Bateman to approve November 23, 2021 minutes, seconded by Mr. Lindblom. Minutes approved without vote. 6. Review of Annual Report for the US Rt. 34 & Il Rt. 47 Countryside Redevelopment Project Area This TIF was done in 2005 in an effort to re-do Countryside. Mr. Fredrickson summarized the TIF revenues and expenditures saying the fiscal year began with a negative fund balance of about $1.2 million and ended with a negative fund balance of $1.182 million. Ms. Orr noted that 6 years are left on this TIF and it will likely end in the negative. Mr. Fredrickson also referred to the detailed expenditures report included. 1 The 2 projects in the TIF were Kendall Crossing and the unfinished Kendall Hospitality/Holiday Inn Express. Mr. Fredrickson also noted an activity statement for the TIF which included an addition for Burnt Barrel Social and the final vacant lot was sold for a Station One Smokehouse restaurant. 7. Questions, Comments from the Board None 8. Discussion, Deliberation and Recommendation None 9. Public Comment None 10. Adjournment This meeting ended at 3:36pm. Respectfully transcribed by Marlys Young, Minute Taker 2 3 FY 2023 Name of Redevelopment Project Area: Primary Use of Redevelopment Project Area*: If "Combination/Mixed" List Component Types: Under which section of the Illinois Municipal Code was the Redevelopment Project Area designated? (check one): Tax Increment Allocation Redevelopment Act Industrial Jobs Recovery Law No Yes For redevelopment projects beginning prior to FY 2022, 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). For redevelopment projects beginning in or after FY 2022, were there any amendments, enactments or extensions 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, enactment or extension, and a copy of the redevelopment plan (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 (labeled Attachment J). x An analysis prepared by a financial advisor or underwriter, chosen by the municipality, setting forth the nature and term of obligation; projected debt service including required reserves and debt coverage; and actual debt service. [65 ILCS 5/11-74.4-5 (d) (8) (B) and 5/11-74.6-22 (d) (8) (B)] If attachment I is yes, the Analysis and an accompanying letter from the municipality outlining the contractual relationship between the municipality and the financial advisor/underwriter MUST be attached (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 $100,000 been made into the special tax allocation fund? [65 ILCS 5/11-74.4-5 (d) (9) and 5/11-74.6-22 (d) (9)] If yes, the audit report shall contain a letter from the independent certified public accountant indicating compliance or noncompliance with the requirements of subsection (q) of Section 11-74.4-3 (labeled Attachment L). x A list of all intergovernmental agreements in effect to which the municipality is a part, and an accounting of any money transferred or received by the municipality during that fiscal year pursuant to those intergovernmental agreements. [65 ILCS 5/11-74.4-5 (d) (10)] If yes, please enclose the list only, not actual agreements (labeled Attachment M).x For redevelopment projects beginning in or after FY 2022, did the developer identify to the municipality a stated rate of return for each redevelopment project area? Stated rates of return required to be reported shall be independently verified by a third party chosen by the municipality. If yes, please enclose evidence of third party verification, may be in the form of a letter from the third party (labeled Attachment N). x SECTION 2 [Sections 2 through 8 must be completed for each redevelopment project area listed in Section 1.] Please utilize the information below to properly label the Attachments. X ______ *Types include: Central Business District, Retail, Other Commercial, Industrial, Residential, and Combination/Mixed. Commercial US Rte 34 & IL Rte 47 - Countryside 4 FY 2023 Special Tax Allocation Fund Balance at Beginning of Reporting Period (1,182,815)$ 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 232,124$ 1,636,666$ 36% State Sales Tax Increment -$ -$ 0% Local Sales Tax Increment -$ -$ 0% State Utility Tax Increment -$ -$ 0% Local Utility Tax Increment -$ -$ 0% Interest -$ 378,778$ 8% Land/Building Sale Proceeds -$ -$ 0% Bond Proceeds -$ 2,506,099$ 55% 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 232,124$ Cumulative Total Revenues/Cash Receipts 4,521,543$ 100% Total Expenditures/Cash Disbursements (Carried forward from Section 3.2) 224,353$ Transfers to Municipal Sources Distribution of Surplus Total Expenditures/Disbursements 224,353$ Net/Income/Cash Receipts Over/(Under) Cash Disbursements 7,771$ Previous Year Adjustment (Explain Below) . FUND BALANCE, END OF REPORTING PERIOD*(1,175,044)$ * 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. US Rte 34 & IL Rte 47 - Countryside Name of Redevelopment Project Area: 5 FY 2023 Name of Redevelopment Project Area: Amounts Reporting Fiscal Year Legal Services 303 Auditing Services - TIF Compliance 215 Administrative Costs 15,804 16,322$ 2. Annual administrative cost. -$ 3. Cost of marketing sites. -$ -$ -$ 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 US Rte 34 & IL Rte 47 - Countryside 6 -$ -$ -$ Paying Agent Fees 661 Principal 116,424 Interest 90,946 208,031$ -$ -$ -$ 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 -$ -$ -$ -$ -$ -$ 224,353$ 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 2023 Name Service Amount BNY Mellon Paying Agent 51,250.00$ Amalgamated Bank Paying Agent 156,781.12$ List all vendors, including other municipal funds, that were paid in excess of $10,000 during the current reporting year. Section 3.2 B [Information in the following section is not required by law, but may be helpful in creating fiscal transparency.] US Rte 34 & IL Rte 47 - Countryside Name of Redevelopment Project Area: 9 FY 2023 FUND BALANCE BY SOURCE (1,175,044)$ 1. Description of Debt Obligations Amount of Original Issuance Amount Designated General Obligation Bonds Series 2005 3,525,000$ -$ General Obligation Bonds Series 2014 1,235,000$ 1,494,578$ General Obligation Bonds Series 2015A 1,475,000$ 1,151,511$ Total Amount Designated for Obligations 6,235,000$ 2,646,089$ 2. Description of Project Costs to be Paid Amount of Original Issuance Amount Designated Total Amount Designated for Project Costs -$ TOTAL AMOUNT DESIGNATED 2,646,089$ SURPLUS/(DEFICIT)(3,821,133)$ 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 US Rte 34 & IL Rte 47 - Countryside Name of Redevelopment Project Area: 10 FY 2023 X Indicate an 'X' if no property was 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: 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)] US Rte 34 & IL Rte 47 - Countryside Name of Redevelopment Project Area: 11 x 2 TOTAL:11/1/99 to Date Estimated Investment for Subsequent Fiscal Year Total Estimated to Complete Project Private Investment Undertaken (See Instructions)14,296,978$ -$ 14,296,978$ Public Investment Undertaken 2,500,000$ -$ 2,500,000$ Ratio of Private/Public Investment 5 23/32 5 23/32 Project 1*: Kendall Crossing Private Investment Undertaken (See Instructions)6,296,978$ -$ 6,296,978$ Public Investment Undertaken 1,800,000$ -$ 1,800,000$ Ratio of Private/Public Investment 3 1/2 3 1/2 Project 2*: Kendall Hospitality - Holiday Inn Express Private Investment Undertaken (See Instructions)8,000,000$ -$ 8,000,000$ Public Investment Undertaken 700,000$ -$ 700,000$ Ratio of Private/Public Investment 11 3/7 11 3/7 Project 3 Name: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 4 Name: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 5 Name: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 6 Name: 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 2023 US Rte 34 & IL Rte 47 - Countryside Name of Redevelopment Project Area: Page 1 MUST 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 and 2b.) 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: 2b. The total number of NEW projects undertaken by the municipality in fiscal year 2022 and any fiscal year thereafter, within the Revelopment Project area, if any. 12 FY 2023 Number of Jobs Retained Number of Jobs Created Job Description and Type (Temporary or Permanent) Total Salaries Paid -$ Temporary Permanent Temporary Permanent Stated Rate of Return The number of jobs, if any, projected to be created at the time of approval of the redevelopment agreement. Project Name SECTION 6.4-For redevelopment projects beginning in or after FY 2022, provide the stated rate of return identified by the developer to the municipality and verified by an independent third party, IF ANY: Project Name SECTION 6 [Information requested in SECTION 6.1 is not required by law, but may be helpful in evaluating the performance of TIF in Illinois. SECTIONS 6.2, 6.3, and 6.4 are required by law, if applicable. (65 ILCS 5/11-74.4-5(d))] The number of jobs, if any, created as a result of the development to date, for the reporting period, under the same guidelines and assumptions as was used for the projections used at the time of approval of the redevelopment agreement. SECTION 6.2-For redevelopment projects beginning in or after FY 2022, complete the following information about projected job creation and actual job creation. SECTION 6.1-For redevelopment projects beginning before FY 2022, complete the following information about job creation and retention. US Rte 34 & IL Rte 47 - Countryside Name of Redevelopment Project Area: The amount of increment projected to be created at the time of approval of the redevelopment agreement. SECTION 6.3-For redevelopment projects beginning in or after FY 2022, complete the following information about increment projected to be created and actual increment created. Project Name The amount of increment created as a result of the development to date, for the reporting period, using the same assumptions as was used for the projections used at the time of the approval of the redevelopment agreement. 13 FY 2023 Provide a general description of the redevelopment project area using only major boundaries. US Rte 34 & IL Rte 47 - Countryside Name of Redevelopment Project Area: SECTION 7 [Information in the following section is not required by law, but may be helpful in evaluating the performance of TIF in Illinois.] The Countryside TIF was created in February of 2005, with the intent of constructing future retail development at Countryside Center. This TIF is located at the northwest corner of US Route 34 and IL Route 47. Enclosed previously provided previously providedMap of District Legal description of redevelopment project area Optional Documents 14 FY 2023 Base EAV 1,528,166$ X -$ -$ -$ -$ -$ -$ -$ -$ -$ SECTION 8 [Information in the following section is not required by law, but may be helpful in evaluating the performance of TIF in Illinois.] US Rte 34 & IL Rte 47 - Countryside Name of Redevelopment Project Area: Year of Designation 2/15/2005 Reporting Fiscal Year EAV 3,550,881$ -$ -$ -$ -$ Indicate an 'X' if the overlapping taxing districts did not receive a surplus. Overlapping Taxing District Surplus Distributed from redevelopment project area to overlapping districts 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. 15 16 17 Unit Code 047/035/30 Attachment D Activities Statement US Rte 34 & IL Rte 47 Countryside In November of 2013 a new 30,000 square foot multiplex movie theater, called NCG Cinemas, opened within the Countryside TIF district. Pursuant to the development agreement, the developer of the movie theater will receive TIF incentives totaling $2 million. Of this amount, $1.8 million was paid (from remaining 2005 bond proceeds) upon the opening of the new theater. The remaining $200,000 will be paid from amusement tax receipts out of the City’s General Fund, of which $160,744 has been paid as of April 30, 2020. In addition, the developer will also receive a 50% rebate of amusement tax receipts for a period of ten years. Fiscal year 2015 saw the opening of a new 10,450 square foot day care center, called Lighthouse Academy. In fiscal year 2019 a 3,000 square foot craft beer tap room business, called Flight Team, opened within a suite of in-line commercial strip located at the northwest corner of IL Route 47 (Bridge Street) and US Route 34 (Veterans Parkway). In fiscal year 2017 the City entered into an inducement resolution with Kendall Hospitality LLC, regarding a planned $8.8 million hotel and convention center development to be located within the TIF district, as part of the Kendall Crossing Development. Part of this agreement came to fruition in the current fiscal year with the opening of a new four-story Holiday Inn Express hotel, which opened in December of 2019. In addition, a new restaurant called Burnt Barrel Social opened in the Fall of 2019. In January of 2014 the City completed a partial refunding of the 2005 Countryside bonds, in order to mitigate the fund’s negative equity position and ease cash flow constraints in subsequent fiscal years. In fiscal year 2016 the City refunded the remaining principal on the 2005 Countryside Bonds, which should result in net present value interest savings of approximately $135,000. As of April 30, 2021, outstanding principal for the 2014 and 2015A (refunded the 2005 bonds) bonds was $1.235 million and $1.468 million, respectively. During the current fiscal year, the TIF district paid $208,310 in principal and interest on the outstanding debt. In 2022, Burnt Barrel Social, a one-of-a-kind family friendly lounge offering local fare and crafted spirits, applied for a building permit to construct a 605 square foot addition to the existing commercial space located at 508 Center Parkway. In addition, the final vacant lot within the Kendall Crossing/Countryside TIF was purchased and a proposed new business, Station One Smokehouse – a Texas styled BBQ restaurant, is planned to open at located at 524 E. Kendall Drive. This is the second restaurant for this business, with the original Station One Smokehouse located in Plainfield, Illinois. 18 UNITED CITY OF YORKVILLE, ILLINOIS COUNTRYSIDE TAX INCREMENTAL FINANCING DISTRICT FINANCIAL AND COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED APRIL 30, 2023 651 Prairie Pointe Drive Yorkville, IL 60560 Phone: 630.553.4350 www.yorkville.il.us 19 UNITED CITY OF YORKVILLE, ILLINOIS COUNTRYSIDE TAX INCREMENTAL FINANCING DISTRICT TABLE OF CONTENTS INDEPENDENT AUDITORS' REPORT 1 FINANCIAL STATEMENTS Balance Sheet 3 Statement of Revenues, Expenditures and Changes in Fund Balance 4 Notes to Financial Statements 5 OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS 6 INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE BASED ON AN AUDIT PAGE 20 INDEPENDENT AUDITORS’ REPORT 21 INDEPENDENT AUDITORS' REPORT October 12, 2023 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 Tax Incremental Financing District of the United City of Yorkville, Illinois as of and for the year ended April 30, 2023, which collectively comprise the Countryside 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 Countryside 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 Countryside Incremental Financing District of the United City of Yorkville, Illinois as of April 30, 2023, 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 12, 2023 on our consideration of the Countryside Tax Incremental Financing District’s compliance with laws, regulations, contracts and grants. Lauterbach & Amen, LLP LAUTERBACH & AMEN, LLP 22 FINANCIAL STATEMENTS 23 UNITED CITY OF YORKVILLE, ILLINOIS COUNTRYSIDE TAX INCREMENTAL FINANCING DISTRICT Balance Sheet April 30, 2023 Cash and Investments $ - Liabilities Accounts Payable 132 Due to Other Funds 1,174,912 Total Liabilities 1,175,044 Unassigned (1,175,044) Total Liabilities and Fund Balance - LIABILITIES FUND BALANCE ASSETS Countryside TIF 24 UNITED CITY OF YORKVILLE, ILLINOIS COUNTRYSIDE TAX INCREMENTAL FINANCING DISTRICT Statement of Revenues, Expenditures and Changes in Fund Balance For the Fiscal Year Ended April 30, 2023 Revenues Taxes Property Taxes $232,124 Expenditures General Government Administration Fees 15,804 Professional Services 518 Debt Service Principal Retirement 116,424 Interest and Fiscal Charges 91,607 Total Expenditures 224,353 Net Change in Fund Balances 7,771 Fund Balances - Beginning (1,182,815) Fund Balances - Ending (1,175,044) Countryside TIF 25 UNITED CITY OF YORKVILLE, ILLINOIS COUNTRYSIDE TAX INCREMENTAL FINANCING DISTRICT Notes to the Financial Statements April 30, 2023 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The operations of Countryside 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. 26 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS October 12, 2023 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 Tax Incremental Financing District of the United City of Yorkville, Illinois, as of and for the year ended April 30, 2023, and have issued our report thereon dated October 12, 2023. 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 27