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2024 Annual JRB Packet - Downtown TIF II 2024 11-26-24NOTICE 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 651 Prairie Pointe Drive 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 800 Game Farm Road 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 26, 2024 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 26, 2024 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 2023 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 28, 2023 3:40pm City Hall Conference Room 651 Prairie Pointe Drive, Yorkville, IL 60560 1. Call the Meeting to Order The meeting was called to order at 3:57pm by Attorney Kathleen Field Orr. 2. Roll Call The roll was called by Ms. Orr in the first of 3 consecutive meetings. United City of Yorkville, Finance Director Rob Fredrickson Kendall County, Christina Burns Kendall Township, Cathy Scalise, Steve Grebner-Township Clerk Yorkville School District #115, Mr. Kreg Wesley, Director of Finance Waubonsee Community College, Sarah Orth Bristol Kendall Fire Protection District, no representative present Others Present: City Attorney, Kathleen Field Orr Assistant City Administrator, City of Yorkville, Erin Willrett Community Development Director, City of Yorkville, Krysti Barksdale-Noble Economic Development Consultant, City of Yorkville Lynn Dubajic Kellogg 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. 4. Motion to Elect or Re-elect a Chairperson Mr. Fredrickson was elected Chairperson in the first of three consecutive meetings. 5. Minutes for Approval No action was taken on the November 22, 2022 minutes. One returning public participant was absent last year and the remainder of the public participants were not on the Board then. 6.Review of Annual Report for the Downtown II Redevelopment Project Area Mr. Fredrickson said this TIF was created in 2018 and will be in effect until 2041. He summarized the TIF activity as follows: Beginning fund balance was negative $6,600, $97,000 received in tax increments and expenditures $3,400. This TIF has a positive Fund Balance of $87,577 at FYE 2023. Also included in the report is an itemized list of expenses incurred. He said two of the projects are a development agreement with KCJ Restoration and also the old jail. Compliance and audited documents are also included in the report. 1 Ms. Dubajic Kellogg reported on another project in this TIF which is the Farm Bureau building. Plans for the building have been put on hold due to interest rates. 7. Questions, Comments from the Board Mr. Grebner inquired if the scope of this TIF included a plan to improve egress across Rt. 47. Ms. Orr said any infrastructure is TIF-eligible and Ms. Barksdale Noble said there are discussions about egress under Rt. 47 by the river. 8. Discussion, Deliberation and Recommendations None 9. Public Comment None 10. Adjournment On a motion and second by Mr. Grebner and second by Ms. Orth, the meeting was adjourned at 4:03pm. Respectfully transcribed by Marlys Young, Minute Taker 2 3 FY 2024 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 $100,000 been made into the special tax allocation fund? [65 ILCS 5/11-74.4-5 (d) (9) and 5/11-74.6-22 (d) (9)] If yes, the audit report shall contain a letter from the independent certified public accountant indicating compliance or noncompliance with the requirements of subsection (q) of Section 11-74.4-3 (labeled Attachment L). X A list of all intergovernmental agreements in effect to which the municipality is a part, and an accounting of any money transferred or received by the municipality during that fiscal year pursuant to those intergovernmental agreements. [65 ILCS 5/11-74.4-5 (d) (10)] If yes, please enclose the list only, not actual agreements (labeled Attachment M).X For redevelopment projects beginning in or after FY 2022, did the developer identify to the municipality a stated rate of return for each redevelopment project area? Stated rates of return required to be reported shall be independently verified by a third party chosen by the municipality. If yes, please enclose evidence of third party verification, may be in the form of a letter from the third party (labeled Attachment N). X SECTION 2 [Sections 2 through 8 must be completed for each redevelopment project area listed in Section 1.] Please utilize the information below to properly label the Attachments. X ______ *Types include: Central Business District, Retail, Other Commercial, Industrial, Residential, and Combination/Mixed. Commercial Downtown Yorkville II 4 FY 2024 Special Tax Allocation Fund Balance at Beginning of Reporting Period 87,577$ 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 145,465$ 393,316$ 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% Other (identify source _____________; if multiple other sources, attach schedule) -$ 761$ 0% All Amount Deposited in Special Tax Allocation Fund 145,465$ Cumulative Total Revenues/Cash Receipts 394,077$ 100% Total Expenditures/Cash Disbursements (Carried forward from Section 3.2) 16,913$ Transfers to Municipal Sources Distribution of Surplus Total Expenditures/Disbursements 16,913$ Net/Income/Cash Receipts Over/(Under) Cash Disbursements 128,552$ Previous Year Adjustment (Explain Below) . FUND BALANCE, END OF REPORTING PERIOD*216,129$ * 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 2024 Name of Redevelopment Project Area: Amounts Reporting Fiscal Year Legal Services 516 Auditing Services - TIF Compliance 224 740$ 2. Annual administrative cost. -$ 3. Cost of marketing sites. -$ -$ Developer Incentive 16,172 16,172$ 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 Downtown Yorkville II 6 -$ -$ -$ -$ -$ -$ -$ 10. Capital costs. 7. Costs of eliminating or removing contaminants and other impediments. 8. Cost of job training and retraining projects. 9. Financing costs. PAGE 2 SECTION 3.2 A 11. Cost of reimbursing school districts for their increased costs caused by TIF assisted housing projects. 12. Cost of reimbursing library districts for their increased costs caused by TIF assisted housing projects. 7 -$ -$ -$ -$ -$ -$ 16,913$ 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 2024 Name Service Amount List all vendors, including other municipal funds, that were paid in excess of $10,000 during the current reporting year. Section 3.2 B [Information in the following section is not required by law, but may be helpful in creating fiscal transparency.] Downtown Yorkville II Name of Redevelopment Project Area: 9 FY 2024 FUND BALANCE BY SOURCE 216,129$ 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 129,236$ Total Amount Designated for Project Costs 129,236$ TOTAL AMOUNT DESIGNATED 129,236$ SURPLUS/(DEFICIT)86,893$ 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 2024 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 155,764$ 18,000$ 285,000$ Ratio of Private/Public Investment 5 3/22 2 46/57 Project 1*: Old Jail Rehab Private Investment Undertaken (See Instructions)800,000$ -$ 800,000$ Public Investment Undertaken 155,764$ 18,000$ 285,000$ Ratio of Private/Public Investment 5 3/22 2 46/57 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 Select ONE of the following by indicating an 'X': SECTION 5 [20 ILCS 620/4.7 (7)(F)] PAGE 1 FY 2024 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. 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. Did the municipality undertake any NEW projects in fiscal year 2022 or any fiscal year thereafter within the Redevelopment Project Area? 12 FY 2024 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. Downtown Yorkville II 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 2024 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. Enclosed previously provided previously providedMap of District Legal description of redevelopment project area Optional Documents 14 FY 2024 Base EAV 4,487,777$ 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.] Downtown Yorkville II Name of Redevelopment Project Area: Year of Designation 5/18/2018 Reporting Fiscal Year EAV 5969064 -$ -$ -$ -$ 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 Megan Lamb Attorney October 23, 2024 [+] Ii] Ottos en DiNolfoGJ [i Hasenbalg &Castaldo, Ltd. 1804 North Naper Boulevard, Suite 350, Naperville, IL 60563 Phone 630.682.0085 • Fax 630.682.0788 • www.ottosenlaw.com Susana A. Mendoza, State Comptroller State of Illinois Building 100 West Randolph Street Suite 15-500 Chicago, Illinois 60601 Dear Ms. Mendoza, Direct 331.212.8709 mlamb@ottosenlaw.com I have acted as City Attorney for the United City of Yorkville, Kendall County, Illinois, in connection with the administration of the Downtown Yorkville II Tax Increment Redevelopment Project Area. I have reviewed all the information provided to me by the City's Finance Director, and to the best of my knowledge and belief find that the City has conformed with all the applicable provisions of the Tax Increment Allocation Redevelopment Act, 60 I LCS 5/11-7 4.4-1, et seq., for the fiscal year ending April 30, 2024. Sincerely, OTTOSEN, DINOLFO, HASENBALG & CASTALDO, LTD. 17 Unit Code 047/035/30 Attachment D Activities Statement Downtown Yorkville II The second Tax Increment Financing (TIF) district in the downtown area was established on May 18, 2018, with the primary goal of enhancing the performance of the original downtown redevelopment zone. Known as the Downtown TIF II, this new district comprises both underperforming parcels from the original TIF, as well as newly added parcels, thereby expanding the total redevelopment area. The creation of this second TIF provides these underperforming parcels with an extended timeframe to generate incremental tax revenues. Additionally, TIF districts that share a boundary are permitted to distribute funds between them, creating opportunities for collaborative financial support. In fiscal year 2020, the City sold the historic jail located on Madison Street within the TIF district and signed an agreement with a developer to rehabilitate the property for residential and commercial use. By fiscal year 2022, the cumulative incremental property tax revenues within the district had exceeded $100,000, nearly doubling from $71,513 to $150,277, largely driven by the current year's contribution of $78,764. In the current fiscal year $145,465 in incremental taxes were generated within the TIF District. Furthermore, the former Kendallwood Estates residential development, which consists of 83 single-family lots on 50 acres of land located south of Van Emmon Road and east of Route 47, was purchased by Rally Homes in the winter of 2021. The development has since been rebranded as Timber Ridge Estates. This new development offers seven semi-custom home plans, each available in three distinct elevations, with home sizes ranging from 2,000 square-foot ranches to nearly 4,000 square-foot two-story homes. While only 29 of the lots within Timber Ridge Estates fall within the boundaries of TIF II, the developer has already begun construction on the first model home unit, marking significant progress in the area's redevelopment efforts. 18 UNITED CITY OF YORKVILLE, ILLINOIS DOWNTOWN TAX INCREMENTAL FINANCING DISTRICT II FINANCIAL AND COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED APRIL 30, 2024 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 PAGE INDEPENDENT AUDITOR’S REPORT 1 FINANCIAL STATEMENTS Balance Sheet 3 Statement of Revenues, Expenditures and Changes in Fund Balance 4 Notes to the Financial Statements 5 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS 6 20 INDEPENDENT AUDITOR’S REPORT 21 INDEPENDENT AUDITOR’S REPORT October 9, 2024 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 (the City), Illinois as of and for the year ended April 30, 2024, 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, 2024, 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 Date 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 FINANCIAL STATEMENTS 23 UNITED CITY OF YORKVILLE, ILLINOIS DOWNTOWN TAX INCREMENTAL FINANCING DISTRICT II Balance Sheet April 30, 2024 Due from Other Funds $232,301 Liabilities Accounts Payable 16,172 Restricted 216,129 Total Liabilities and Fund Balance 232,301 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, 2024 Revenues Taxes Property Taxes $145,465 Expenditures General Government TIF Incentive Payout 16,172 Professional Services 741 Total Expenditures 16,913 Net Change in Fund Balances 128,552 Fund Balances - Beginning 87,577 Fund Balances - Ending 216,129 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, 2024 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 AUDITOR’S REPORT ON COMPLIANCE BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS October 9, 2024 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 (the City), Illinois, as of and for the year ended April 30, 2024, and have issued our report thereon dated October 9, 2024. 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