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Joint Review Board Packet - Downtown TIF II 11-25-25NOTICE 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 25, 2025 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 Contrino, 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 25, 2025 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 2024 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 ..................................................................................................................... 26 This page intentionally left blank. ANNUAL JOINT REVIEW BOARD UNITED CITY OF YORKVILLE, KENDALL COUNTY, ILLINOIS DOWNTOWN II REDEVELOPMENT PROJECT AREA Tuesday, November 26, 2024 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 3:51pm by City Attorney Kathleen Field Orr. 2. Roll Call Ms. Orr stated the same participants were present from the previous 2 meetings. United City of Yorkville, Bart Olson Kendall County, No representative Kendall Township, Cathy Scalise, Steve Grebner, Steve Gengler Yorkville School District #115, Mr. Kreg Wesley Waubonsee Community College #516, Sarah Zimmer Bristol Kendall Fire Protection District, Jeremy Messersmith Others Present: City Attorney, Kathleen Field Orr Assistant City Administrator, Erin Willrett Community Development Director, Krysti Barksdale-Noble Economic Development Director Lynn Dubajic Kellogg 3. Motion to Elect or Re-elect a Public Member In the Joint Board of Review meeting just prior to this, Ms. Orr stated no one would be elected since no vote would be taken. 4. Motion to Elect or Re-elect a Chairperson Mr. Olson continued as Chairperson from the previous Joint Board of Review meetings. 5. Minutes for Approval November 28, 2023 Motion by Ms. Zimmer and second by Mr. Messersmith to approve the minutes as presented. Unanimous voice vote. 6. Review of Annual Report for the Downtown II Redevelopment Project Area Mr. Fredrickson said the beginning balance is $88,000, revenues from property taxes of $146,000, expenses of $17,000, resulting in an ending fund balance of $216,000. Also included are an itemized list of expenses, listing of projects (including the old jail) through 2024 and the activities statement. 1 7. Questions, Comments from the Board None 8. Discussion, Deliberation and Recommendation Mr. Olson summarized the activities in this TIF and said the City bought the FS property and is discussing a band shell and parking. Parking there could be used by the businesses during the day. The City is hoping for $2 million from a possible grant, however, has not yet heard from the state. The entire project would be $8 million, and the City would finance from this TIF as much as possible. The City has also applied for an ITEP grant for Hydraulic St. improvements, safety improvements and other enhancements. Ms. Kellogg added that the Farm Bureau building in this TIF is close to being sold. It was noted that 38 homes have been built in Timber Ridge which is also in this TIF. A water main loop must be completed prior to any more permits being issued. There are no TIF incentives for this. It was noted the taxes shown in this report are from 2023, payable in 2024. 9. Public Comment None 10. Adjournment There was no further business and the meeting was adjourned at 4:00pm. Respectfully transcribed by Marlys Young, Minute Taker 2 3 FY 2025 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 $100,000 been made into the special tax allocation fund? [65 ILCS 5/11-74.4-5 (d) (9) and 5/11-74.6-22 (d) (9)] If yes, the audit report shall contain a letter from the independent certified public accountant indicating compliance or noncompliance with the requirements of subsection (q) of Section 11-74.4-3 (Labeled Attachment L). X A list of all intergovernmental agreements in effect to which the municipality is a part, and an accounting of any money transferred or received by the municipality during that fiscal year pursuant to those intergovernmental agreements. [65 ILCS 5/11-74.4-5 (d) (10)] If yes, please enclose the list only, not actual agreements (Labeled Attachment M).X For redevelopment projects beginning in or after FY 2022, did the developer identify to the municipality a stated rate of return for each redevelopment project area? Stated rates of return required to be reported shall be independently verified by a third party chosen by the municipality. If yes, please enclose evidence of third party verification, may be in the form of a letter from the third party (Labeled Attachment N). X Letter from the Mayor/Village President designating the municipality's TIF Administrator. Must include the phone number and email address of the designated party (Labeled Attachment O.)X SECTION 2 [Sections 2 through 8 must be completed for each redevelopment project area listed in Section 1.] Please utilize the information below to properly label the Attachments. X ______ *Types include: Central Business District, Retail, Other Commercial, Industrial, Residential, and Combination/Mixed. Commercial Downtown Yorkville II Name of Redevelopment Project Area: 4 FY 2025 Special Tax Allocation Fund Balance at Beginning of Reporting Period 216,129$ 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 215,723$ 609,039$ 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 761$ 0% All Amount Deposited in Special Tax Allocation Fund 215,723$ Cumulative Total Revenues/Cash Receipts 609,800$ 100% Total Expenditures/Cash Disbursements (Carried forward from Section 3.2) 210,722$ Transfers to Municipal Sources Distribution of Surplus Total Expenditures/Disbursements 210,722$ Net/Income/Cash Receipts Over/(Under) Cash Disbursements 5,001$ Previous Year Adjustment (Explain Below) . FUND BALANCE, END OF REPORTING PERIOD*221,130$ * 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 2025 Name of Redevelopment Project Area: Amounts Reporting Fiscal Year Legal Services $ 19,875 Auditing Services - TIF Compliance $ 230 $ 2,643 22,748$ -$ -$ Brownfield Remediation $ 9,800 9,800$ $ 28,175 28,175$ -$ 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 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. Developer Incentive 4. Property assembly cost and site preparation costs. 2. Annual administrative cost. 3. Cost of marketing sites. Architecture Services 6 -$ -$ Installment Contract - 121 Van Emmon (FS Property) $ 150,000 150,000$ -$ -$ -$ 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 -$ -$ -$ -$ -$ -$ 210,722$ 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. 17. Cost of day care services. 8 FY 2025 Name Service Amount Birchwood Residential Developer Incentive 28,175$ Imperial Investments Installment Contract 150,000$ List all vendors, including other municipal funds, that were paid in excess of $10,000 during the current reporting year. Section 3.2 B [Information in the following section is not required by law, but may be helpful in creating fiscal transparency.] Downtown Yorkville II Name of Redevelopment Project Area: 9 FY 2025 FUND BALANCE BY SOURCE 221,130$ 1. Description of Debt Obligations Amount of Original Issuance Amount Designated 121 Van Emmon (FS Property) Installment Contract 900,000$ 750,000$ Total Amount Designated for Obligations 900,000$ 750,000$ 2. Description of Project Costs to be Paid Amount of Original Issuance Amount Designated Birchwood Residential (KCJ Restoration) Redevelopment 101,061$ Total Amount Designated for Project Costs 101,061$ TOTAL AMOUNT DESIGNATED 851,061$ SURPLUS/(DEFICIT)(629,931)$ 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 2025 Indicate an 'X' if no property was acquired by the municipality within the redevelopment project area. Property (1):FS Property Street address:121 Van Emmon Approximate size or description of property:Vacant Commercial Purchase price:$900,000 Seller of property:Imperial Investments Property (2): Street address: Approximate size or description of property: Purchase price: Seller of property: Property (3): Street address: Approximate size or description of property: Purchase price: Seller of property: Property (4): Street address: Approximate size or description of property: Purchase price: Seller of property: Property (5): Street address: Approximate size or description of property: Purchase price: Seller of property: Property (6): Street address: Approximate size or description of property: Purchase price: Seller of property: Property (7): Street address: Approximate size or description of property: Purchase price: Seller of property: Provide a description of all property purchased by the municipality during the reporting fiscal year within the redevelopment project area. SECTION 4 [65 ILCS 5/11-74.4-5 (d) (6) and 65 ILCS 5/11-74.6-22 (d) (6)] Downtown Yorkville II Name of Redevelopment Project Area: 11 X 1 1 TOTAL:11/1/99 to Date Estimated Investment for Subsequent Fiscal Year Total Estimated to Complete Project Private Investment Undertaken (See Instructions)800,000$ -$ 800,000$ Public Investment Undertaken 305,764$ 168,000$ 1,185,000$ Ratio of Private/Public Investment 2 45/73 27/40 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*: FS Property Acquisition Private Investment Undertaken (See Instructions)-$ -$ -$ Public Investment Undertaken 150,000$ 150,000$ 900,000$ 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 NUMBER of new projects undertaken in fiscal year 2022 or any fiscal year thereafter, within the Redevelopment Project Area. Select ONE of the following by indicating an 'X': SECTION 5 [20 ILCS 620/4.7 (7)(F)] PAGE 1 FY 2025 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 2025 Number of Jobs Retained Number of Jobs Created Job Description and Type (Temporary or Permanent) Total Salaries Paid -$ 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, 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, 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. Name of Redevelopment Project Area: Downtown Yorkville II 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 2025 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 2025 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 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 6,869,187$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 15 16 17 Unit Code 047/035/30 Attachment D Activities Statement Downtown Yorkville II The City’s second Tax Increment Financing (TIF) district in the downtown area, formally established on May 18, 2018, was created to strengthen and extend the redevelopment efforts initiated under the original Downtown TIF district. Known as Downtown TIF II, the district includes both underperforming parcels from the initial TIF as well as additional properties, thereby expanding the overall redevelopment boundary and enhancing the City’s ability to promote long-term revitalization. Establishment of the second TIF district also provided an extended time horizon for these parcels to generate incremental tax revenues and reinvestment opportunities. In accordance with State law, adjoining TIF districts are permitted to share a common boundary and transfer funds between them, allowing for coordinated investment and joint project support. In fiscal year 2020, the City completed the sale of the historic jail property on Madison Street, located within the TIF district, and entered into a redevelopment agreement with a private developer to rehabilitate the site for mixed residential and commercial use. Since that time, the district’s performance has shown measurable improvement. By fiscal year 2022, cumulative incremental property tax revenues surpassed $100,000, increasing from $71,513 to $150,277—nearly doubling within two years—driven primarily by $78,764 in new incremental revenue generated that year. In the most recent fiscal year, incremental revenues totaled $145,465, reflecting continued strength in assessed valuation and reinvestment activity within the district. A major catalyst for renewed development activity within the district has been the transformation of the former Kendallwood Estates subdivision. Acquired by Rally Homes in the winter of 2021 and rebranded as Timber Ridge Estates, the 50-acre site includes 83 single-family lots located south of Van Emmon Road and east of Route 47. The developer has introduced seven semi-custom home models, each available in three elevations and ranging from approximately 2,000-square-foot ranches to nearly 4,000-square-foot two-story homes. While 29 of these lots lie within the TIF II boundary, the project represents a significant advancement in the area’s residential redevelopment momentum. Construction of the first model home has commenced, signaling tangible progress toward full build-out. In July 2024, the City finalized an installment purchase agreement for the 121 E. Van Emmon Street property (parcels 02-033-154-013, 014, and 018) at a total cost of $900,000, to be paid in six annual installments of $150,000 through fiscal year 2030. The property has a well-documented history of environmental remediation efforts dating back to the mid-2000s. Following acquisition, the City intends to pursue an Illinois Environmental Protection Agency (IEPA) No Further Remediation (NFR) letter, supported by an associated brownfield grant application. Long-term concepts for the site include development of a public open-space amenity—potentially featuring landscaped areas, utility relocations, and a performance stage or band shell— though these concepts remain preliminary and will be refined through further public input and City Council review. 18 UNITED CITY OF YORKVILLE, ILLINOIS DOWNTOWN TAX INCREMENTAL FINANCING DISTRICT II FINANCIAL AND COMPLIANCE REPORT FOR THE FISCAL YEAR ENDED APRIL 30, 2025 651 Prairie Pointe Drive Yorkville, IL 60560 Phone: 630.553.4350 www.yorkville.il.us 19 INDEPENDENT AUDITOR’S REPORT 20 INDEPENDENT AUDITOR’S REPORT October 8, 2025 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, 2025. 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, 2025, and the results of its operations for the year then ended in conformity with accounting principles generally accepted in the United States of America. We have also issued a report dated October 8, 2025 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 21 FINANCIAL STATEMENTS 22 UNITED CITY OF YORKVILLE, ILLINOIS DOWNTOWN TAX INCREMENTAL FINANCING DISTRICT II Balance Sheet April 30, 2025 Due from Other Funds $ 223,773 Liabilities Accounts Payable 2,643 Restricted 221,130 Total Liabilities and Fund Balance 223,773 LIABILITIES FUND BALANCE ASSETS Downtown TIF II The notes to the financial statements are an integral part of this statement. 23 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, 2025 Revenues Taxes Property Taxes $215,722 Expenditures General Government TIF Incentive Payout 28,175 Professional Services 29,904 Project Costs 2,642 Capital Outlay 900,000 Debt Service Principal Retirement 150,000 Total Expenditures 1,110,721 Excess (Deficiency) of Revenues Over (Under) Expenditures (894,999) Other Financing Sources Debt Issuance 900,000 Net Change in Fund Balances 5,001 Fund Balances - Beginning 216,129 Fund Balances - Ending 221,130 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 Notes to the Financial Statements April 30, 2025 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. 25 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS October 8, 2025 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, 2025, and have issued our report thereon dated October 8, 2025. 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 26