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Joint Review Board Packet - Downtown TIF II 2023 11-28-23NOTICE OF ANNUAL MEETING OF JOINT REVIEW BOARD Bristol-Kendall Fire Protection District 103 East Beaver Street Yorkville, Illinois 60560 Kendall Township 9925 B State Route 47 Yorkville, Illinois 60560 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 Downtown II Tax Increment Financing Redevelopment Project Area will be convened on November 28, 2023 at 3:40 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 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 II REDEVELOPMENT PROJECT AREA November 28, 2023 United City of Yorkville 3:40 p.m. 651 Prairie Pointe Drive 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 2022 Joint Review Board .............................................................................. 1 Downtown TIF II 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 DOWNTOWN II REDEVELOPMENT PROJECT AREA Tuesday, November 22, 2022 3:40pm City Hall Conference Room 800 Game Farm Rd., Yorkville, IL 60560 1. Call the Meeting to Order The meeting was called to order at 3:48pm by Attorney Kathleen Field Orr. 2. Roll Call The roll was called by Ms. Orr in the first of 3 consecutive meetings, so she stated who was present at this meeting. City of Yorkville, Finance Director Rob Fredrickson Waubonsee Community College, no representative Bristol Kendall Fire Protection District, James Bateman, Tom Lindblom Kendall Township, Steven Gengler Kendall County, 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 a Public Member In the first of 3 consecutive meetings, Ms. Orr stated no one would be elected since no vote will take place. 4. Motion to Elect or Re-elect a Chairperson None elected. 5. Minutes for Approval Motion by Mr. Lindblom, second by Mr. Bateman to approve the minutes of November 23, 2021. Approved on voice vote. 6. Review of Annual Report for the Downtown II Redevelopment Project Area Ms. Orr commented that this is the newest TIF, having been done in 2018. Mr. Fredrickson said the TIF started with a negative fund balance of $48,000, he summarized the revenues and expenditures for the year and said the ending fund balance would only be a negative $6,600 due to a sizeable property tax increment of $78,000. He said there is also an itemized expenditure list and activities statement. The old jail project and a portion of the Timber Ridge Estates are included in TIF II. 1 7. Questions, Comments from the Board Mr. Lindblom commented that the BK Fire District had a concern that the name of Timber Ridge was very similar to other subdivisions. Ms. Noble said there is another similarly named subdivision in the county jurisdiction and it was noted as a concern. Mr. Bateman added that if someone is not familiar with the area, there could be confusion, but GPS is an asset. Mr. Gengler asked about the process for an extension. Ms. Orr explained that an extension must be done by the General Assembly, following a request to each taxing district as well as their support. After a brief statement of the attorneys who represent the BK Fire District, Ms. Orr noted that she wished to make public that she works for the Law Firm Ottosen DiNalfo Hasenbalg & Castaldo, Ltd. 8. Discussion, Deliberation and Recommendations None 9. Public Comment None 10. Adjournment On a motion and second by Mr. Lindblom and second by Mr. Bateman, the meeting was adjourned at 3:54pm. 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 $100,000 been made into the special tax allocation fund? [65 ILCS 5/11-74.4-5 (d) (9) and 5/11-74.6-22 (d) (9)] If yes, the audit report shall contain a letter from the independent certified public accountant indicating compliance or noncompliance with the requirements of subsection (q) of Section 11-74.4-3 (labeled Attachment L). x A list of all intergovernmental agreements in effect to which the municipality is a part, and an accounting of any money transferred or received by the municipality during that fiscal year pursuant to those intergovernmental agreements. [65 ILCS 5/11-74.4-5 (d) (10)] If yes, please enclose the list only, not actual agreements (labeled Attachment M).x For redevelopment projects beginning in or after FY 2022, did the developer identify to the municipality a stated rate of return for each redevelopment project area? Stated rates of return required to be reported shall be independently verified by a third party chosen by the municipality. If yes, please enclose evidence of third party verification, may be in the form of a letter from the third party (labeled Attachment N). x SECTION 2 [Sections 2 through 8 must be completed for each redevelopment project area listed in Section 1.] Please utilize the information below to properly label the Attachments. X ______ *Types include: Central Business District, Retail, Other Commercial, Industrial, Residential, and Combination/Mixed. Commercial Downtown Yorkville II 4 FY 2023 Special Tax Allocation Fund Balance at Beginning of Reporting Period (6,625)$ 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 97,574$ 247,851$ 100% State Sales Tax Increment -$ -$ 0% Local Sales Tax Increment -$ -$ 0% State Utility Tax Increment -$ -$ 0% Local Utility Tax Increment -$ -$ 0% Interest -$ -$ 0% Land/Building Sale Proceeds -$ -$ 0% Bond Proceeds -$ -$ 0% Transfers from Municipal Sources -$ -$ 0% Private Sources -$ -$ 0% Miscellaneous Income -$ 761$ 0% All Amount Deposited in Special Tax Allocation Fund 97,574$ Cumulative Total Revenues/Cash Receipts 248,612$ 100% Total Expenditures/Cash Disbursements (Carried forward from Section 3.2) 3,372$ Transfers to Municipal Sources Distribution of Surplus Total Expenditures/Disbursements 3,372$ Net/Income/Cash Receipts Over/(Under) Cash Disbursements 94,202$ Previous Year Adjustment (Explain Below) . FUND BALANCE, END OF REPORTING PERIOD*87,577$ * 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 Name of Redevelopment Project Area: 5 FY 2023 Name of Redevelopment Project Area: Amounts Reporting Fiscal Year Legal Services 1,349 Auditing Services - TIF Compliance Report 215 1,564$ 2. Annual administrative cost. -$ 3. Cost of marketing sites. -$ -$ Developer Incentive 1,808 1,808$ 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 Downtown Yorkville II 4. Property assembly cost and site preparation costs. 5. Costs of renovation, rehabilitation, reconstruction, relocation, repair or remodeling of existing public or private building, leasehold improvements, and fixtures within a redevelopment project area. 6. Costs of the constructuion of public works or improvements. 6 -$ -$ -$ -$ -$ -$ -$ 11. Cost of reimbursing school districts for their increased costs caused by TIF assisted housing projects. 12. Cost of reimbursing library districts for their increased costs caused by TIF assisted housing projects. 10. Capital costs. 7. Costs of eliminating or removing contaminants and other impediments. 8. Cost of job training and retraining projects. 9. Financing costs. PAGE 2 SECTION 3.2 A 7 -$ -$ -$ -$ -$ -$ 3,372$ 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 List all vendors, including other municipal funds, that were paid in excess of $10,000 during the current reporting year. Section 3.2 B [Information in the following section is not required by law, but may be helpful in creating fiscal transparency.] Downtown Yorkville II Name of Redevelopment Project Area: 9 FY 2023 FUND BALANCE BY SOURCE 87,577$ 1. Description of Debt Obligations Amount of Original Issuance Amount Designated Total Amount Designated for Obligations -$ -$ 2. Description of Project Costs to be Paid Amount of Original Issuance Amount Designated Birchwood Residential (KCJ Restoration) Redevelopment 145,409$ Total Amount Designated for Project Costs 145,409$ TOTAL AMOUNT DESIGNATED 145,409$ SURPLUS/(DEFICIT)(57,832)$ 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 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)] Downtown Yorkville II Name of Redevelopment Project Area: 11 x 1 TOTAL:11/1/99 to Date Estimated Investment for Subsequent Fiscal Year Total Estimated to Complete Project Private Investment Undertaken (See Instructions)800,000$ -$ 800,000$ Public Investment Undertaken 139,591$ 16,172$ 280,000$ Ratio of Private/Public Investment 5 19/26 2 6/7 Project 1*: Old Jail Rehab Private Investment Undertaken (See Instructions)800,000$ -$ 800,000$ Public Investment Undertaken 139,591$ 16,172$ 280,000$ Ratio of Private/Public Investment 5 19/26 2 6/7 Project 2 Name: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 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 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. Select ONE of the following by indicating an 'X': SECTION 5 [20 ILCS 620/4.7 (7)(F)] PAGE 1 FY 2023 Downtown Yorkville II 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. 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 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. 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. Downtown Yorkville II Name of Redevelopment Project Area: 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 13 FY 2023 Enclosed previously provided previously providedMap of District Legal description of redevelopment project area Optional Documents Provide a general description of the redevelopment project area using only major boundaries. Downtown Yorkville II 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 Downtown TIF II Fund accounts for the development activities of the downtown area located primarily south of Hydraulic Avenue and just north of Washington Street, between White Oak Estate to the west and Benjamin Street to the east. 14 FY 2023 Base EAV 4,487,777$ x 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. -$ -$ -$ -$ SECTION 8 [Information in the following section is not required by law, but may be helpful in evaluating the performance of TIF in Illinois.] Downtown Yorkville II Name of Redevelopment Project Area: Year of Designation 5/18/2018 Reporting Fiscal Year EAV 5,969,064$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 15 16 United City of Yorkville 651 Prairie Pointe Drive Yorkville, Illinois 60560 Telephone : 630-553-4350 www.yorkville.il.us CERTIFICATION OF CHIEF EXECUTIVE OFFICER I, John Purcell, Mayor of the United City of Yorkville, Kendall County, Illinois, certify that the City has complied with all of the requirements of the Tax Increm ent Allocation R edevelopment Act, 65 ILCS 5/11-74.4-1 et seq. during the fiscal year ending April 30, 2023 , in connection with the administration of the Downtown II Tax Increment Financing District. 17 KATHLEEN FIELD ORR kfo@kfoassoc.com LAW OFFICE KATHLEEN FIELD ORR 2024 Hickory Road Suite 205 Homewood, Illinois 60430 312.382.2113 October 26, 2023 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 II for the Fiscal Year Ending April 30, 2023 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, THLEEN FIELD ORR KFO/kms ATTACHMENT C 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. In fiscal year 2020 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. In fiscal year 2022 cumulative incremental property taxes exceeded $100,000 – going from $71,513 to $150,277, due to the current year’s allotment of $78,764. Moreover, the former Kendallwood Estates residential development, consisting of 83 single-family lots on 50-acres of land just south of Van Emmon Road and east of Route 47, was purchased by Rally Homes in winter 2021 and renamed the Timber Ridge Estates development. The development will offer seven (7) different semi-custom home plans and three (3) distinct elevations per plan. The homes will range in size from 2,000 square foot ranches to nearly 4,000 square foot two-story homes. While there are only 29 lots of the Timber Ridge Estates within TIF II, the developer has started construction of the first model home unit. 18 UNITED CITY OF YORKVILLE, ILLINOIS DOWNTOWN TAX INCREMENTAL FINANCING DISTRICT II 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 DOWNTOWN TAX INCREMENTAL FINANCING DISTRICT II TABLE OF CONTENTS INDEPENDENT AUDITORS' REPORT FINANCIAL STATEMENTS Balance Sheet Statement of Revenues, Expenditures and Changes in Fund Balance Notes to Financial Statements OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE BASED ON AN AUDIT 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 Downtown Tax Incremental Financing District II of the United City of Yorkville, Illinois as of and for the year ended April 30, 2023, 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, 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 Downtown Tax Incremental Financing District II’s compliance with laws, regulations, contracts and grants. Lauterbach & Amen, LLP LAUTERBACH & AMEN, LLP 22 II Lauterbach & Amen, LLP ________ 66_8 _N _. RIVER ROAD • NAPERVILLE, 1LuN01s 60563 ______ ___./ I PHONE 630.393 .1483 • FAX 630.393.2516 www.lauterbachamen.com CERTIFIED PUBLIC ACCOUNTANTS FINANCIAL STATEMENTS 23 UNITED CITY OF YORKVILLE, ILLINOIS DOWNTOWN TAX INCREMENTAL FINANCING DISTRICT II Balance Sheet April 30, 2023 Due from Other Funds $ 89,385 Liabilities Accounts Payable 1,808 Restricted 87,577 Total Liabilities and Fund Balance 89,385 LIABILITIES FUND BALANCE ASSETS Downtown TIF II The notes to the financial statements are an integral part of this statement. 24 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, 2023 Revenues Taxes Property Taxes $97,573 Expenditures General Government TIF Incentive Payout 1,808 Professional Services 1,563 Total Expenditures 3,371 Net Change in Fund Balances 94,202 Fund Balances - Beginning (6,625) Fund Balances - Ending 87,577 Downtown TIF II The notes to the financial statements are an integral part of this statement. 25 UNITED CITY OF YORKVILLE, ILLINOIS DOWNTOWN TAX INCREMENTAL FINANCING DISTRICT II Notes to the Financial Statements April 30, 2023 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. 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 Downtown Tax Incremental Financing District II 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 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 27 ti Lauterb h & A LLP 668 N. RIVER ROAD • NAPERVILLE, ILLINOIS 60563 ac me_n_, _____ ,,r---------PHONE630.393.1483 · FAX630.393.2516 www.lauterbachamen.com CERTIFIED PUBLIC ACCOUNTANTS