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DesPlaines TIF6FY 2015 ANNUAL TAX INCREMENT FINANCE REPORT Name of Municipality: Des Plaines County: Cook Unit Code: 016/140/30 First Name: Michael STATE OF ILLINOIS COMPTROLLER LESLIE GEISSLER GER Reporting Fiscal Year: Fiscal Year End: T F Administrator Contact Information Last Name: Bartholome Address: 1420 Miner Street Telephone: 847/391-548 Mobile na Mobile Provider na 2015 12/31/2015 Title: City Manager City: Des Plaines E -mail - required martholomewOdesolalnes.org Best way to _x Email _X_Phone contact Mobile Mail Zip: 60016 I attest to the best of my knowledge, this report of the redevelopment project areas in: CItyNillage of Des Plaines is complete and accurate at the end of this reporting Fiscal year under the Tax Increment Allocation Redevelopment Aot [65 ILCS 5/11-74.43 et. seq.] Or e Industrial Jobs Recovery Law [65 ILCS 5/11-74.6-10 et. seq.] Written si nature of TIF Administrator eml Section 1 (65 ILCS 5/11-74.45 (d) (1.5) and 65 ILCS 5/11-74.6-22 (d) (1.5)*) FILL OUT ONE FOR EACH TIF DISTICT TIF TIF No. 3 Willie R TIF TIF No, 5 Lee Street Perry Street TIF No, 6 Mannheim - Higgins Road TIF No. 7 - 11i:lr,s Road and Pratt Avenue Name of RedevelopmentProject A Date 10/2006 11/19/2014 4/21/2001 10/15/2001 *AII statutory citations refer to one af two sections of the Illinois Municipal Code: the Tax Increment Allocation 3 et. seq.] or the industrial Jobs Recovery Law [65 ILCS 5/11-74.6-10 et. seq,] Redevelopment Act [65 ILCS 5/11-74. SECTION 2 [Sections 2 through 5 must be completed for each redevelopment project area listed in Section 1.] FY 2015 Name of Redevelopment Project Area: TIF 6 Manheim Higgins Primary Use of Redevelopment Project Area*: Retail If "Combination/Mixed" List Component Types: Under which section of the Illinois Municipal Code was Redevelopment Project Area designated? (check one): Tax Increment Allocation Redevelopment Act _x_ Industrial Jobs Recovery Law Types include: Central Business District, Retail, Other Commercial, Industrial, Residential, and Combination/Mixed. No Yes Were there any amendments to the redevelopment plan, the redevelopment project area, or the State Sales Tax Boundary? [65 ILCS 5/11-74.4-5 (d) (1) and 5/11-74.6-22 (d) (1)] If yes, please enclose the amendment labeled Attachment A X Certification of the Chief Executive Officer of the municipality that the municipality has complied with all of the requirements of the Act during the preceding fiscal year. [65 ILCS 5/11-74.4-5 (d) (3) and 5/11-74.6 22 (d) (3)] Please enclose the CEO Certification labeled Attachment B X Opinion of legal counsel that municipality is in compliance with the Act. [65 ILCS 5/11-74.4-5 (d) (4) and 5/11-74.6-22 (d) (4)] Please enclose the Legal Counsel Opinion labeled Attachment C X Were there any activities undertaken in furtherance of the objectives of the redevelopment plan, including any project implemented in the preceding fiscal year and a description of the activities undertaken? [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 labeled 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 or meeting minutes 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 municipality? [65 ILCS 5/11-74.4-5 (d) (8) (A) and 5/11-74.6-22 (d) (8) (A)] If yes, please enclose the Official Statement labeled Attachment I X Was analysis prepared by a financial advisor or underwriter setting forth the nature and term of obligation and projected debt service including required reserves and debt coverage? [65 ILCS 5/11-74.4- 5 (d) (8) (B) and 5/11-74.6-22 (d) (8) (B)] If yes, please enclose the Analysis labeled Attachment J X Cumulatively, have deposits from any source equal or greater than $100,000 been made 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, please enclose a certified letter statement reviewing compliance with the Act labeled Attachment L X A list of all intergovernmental agreements in effect in FY 2010, 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 list only of the intergovernmental agreements labeled Attachment M X Types include: Central Business District, Retail, Other Commercial, Industrial, Residential, and Combination/Mixed. SECTION 3.1 - (65 ILCS 5/11-74.4-5 (d) (5) and 65 ILCS 5/11-74.6-22 (d) (5)) Provide an analysis of the special tax allocation fund. FY 2015 TIF NAME: TIF No. 6 Mannheim Higgins Fund Balance at Beginning of Reporting Period $ (8,080,970) Revenue/Cash Receipts Deposited in Fund During Reporting FY: Reporting Year Cumulative* % of Total Property Tax Increment $ 52,109 $ 970,610 5% State Sales Tax Increment 0% Local Sales Tax Increment 0% State Utility Tax Increment 0% Local Utility Tax Increment 0% Interest $ 546,083 3% Land/Building Sale Proceeds $ 26,029 0% Bond Proceeds $ 16,650,249 88% Transfers from Municipal Sources 0% Private Sources 0% Other (identify source ; if multiple other sources, attach $ 768,729 4% schedule) Total Amount Deposited in Special Tax Allocation Fund During Reporting Period Cumulative Total Revenues/Cash Receipts Total Expenditures/Cash Disbursements (Carried forward from Section 3.2) Distribution of Surplus Total Expenditures/Disbursements NET INCOME/CASH RECEIPTS OVER/(UNDER) CASH DISBURSEMENTS FUND BALANCE, END OF REPORTING PERIOD* *must be completed where current or prior year(s) have reported funds $ 52,109 $ 18,961,700 100% $ 1,150,424 $ 1,150,424 $ (1,098,315) $ (9,179,285) * if there is a positive fund balance at the end of the reporting period, you must complete Section 3.3 SURPLUS*/(DEFICIT)(Carried forward from Section 3.3) $ (18,323,672) SECTION 3.2 A- (65 ILCS 5/11-74.4-5 (d) (5) and 65 ILCS 5/11-74.6-22 (d) (5)) FY 2015 TIF NAME: TIF No. 6 Mannheim Higgins ITEMIZED LIST OF ALL EXPENDITURES FROM THE SPECIAL TAX ALLOCATION FUND (by category of permissible redevelopment cost, amounts expended during reporting period) FOR AMOUNTS >$10,000 SECTION 3.2 B MUST BE COMPLETED Category of Permissible Redevelopment Cost [65 ILCS 5/11-74.4-3 (q) and 65 ILCS 5/11-74.6- 10 (o)] Amounts Reporting Fiscal Year 1. Costs of studies, administration and professional services—Subsections (q)(1) and (o) (1) Administration 1,165 1,165 2. Cost of marketing sites—Subsections (q)(1.6) and (o)(1.6) 3.Property assembly: property acquisition, building demolition, site preparation and environmental site improvement costs. Subsections (q)(2), (o)(2) and (o)(3) 4.Costs of rehabilitation, reconstruction, repair or remodeling of existing public or private buildings. Subsection (q)(3) and (o)(4) 5. Costs of construction of public works and improvements. Subsection (q)(4) and (o)(5) 6.Costs of removing contaminants required by environmental laws or rules (o)(6) - Industrial Jobs Recovery TIFs ONLY SECTION 3.2 A PAGE 2 7. Cost of job training and retraining, including "welfare to work" programs Subsection (q)(5), (o)(7) and (o)(12) 8.Financing costs related to obligations issued by the municipality. Subsection (q) (6) and (o)(8) Debt Service 1,149,259 1,149,259 9. Approved taxing district's capital costs. Subsection (q)(7) and (o)(9) 10. Cost of Reimbursing school districts for their increased costs caused by TIF assisted housing projects. Subsection (q)(7.5) - Tax Increment Allocation Redevelopment TIFs ONLY 11. Relocation costs. Subsection (q)(8) and (o)(10) 12.Payments in lieu of taxes as defined in Subsections 11-74.43(m) and 11-74.6-10(k). Subsection (q)(9) and (o)(11) 13. Costs of job training, retraining advanced vocational or career education provided by other taxing bodies. Subsection (q)(10) and (o)(12) SECTION 3.2 A PAGE 3 14. Costs of reimbursing private developers for interest expenses incurred on approved redevelopment projects. Subsection (q)(11)(A-E) and (o)(13)(A-E) 15. Costs of construction of new housing units for low income and very low-income households. Subsection (q)(11)(F) - Tax Increment Allocation Redevelopment TIFs ONLY 16. Cost of day care services and operational costs of day care centers. Subsection (q) (11.5) - Tax Increment Allocation Redevelopment TIFs ONLY TOTAL ITEMIZED EXPENDITURES 1,150,424 Section 3.2 B FY 2015 TIF NAME: TIF No. 6 Mannheim Higgins List all vendors, including other municipal funds, that were paid in excess of $10,000 during the current reporting year. There were no vendors, including other municipal funds, paid in excess of $10,000 during the current reporting period. Name Service Amount Bond Funds Debt Service $ 1,149,259.00 SECTION 3.3 - (65 ILCS 5/11-74.4-5 (d) (5) 65 ILCS 11-74.6-22 (d) (5)) Breakdown of the Balance in the Special Tax Allocation Fund At the End of the Reporting Period FY 2015 TIF NAME: TIF No. 6 Mannheim Higgins FUND BALANCE, END OF REPORTING PERIOD 1. Description of Debt Obligations (9,179,285) Amount of Original Issuance Amount Designated Bonds Series 2003 C $ 2,250,000 Bonds Series 2004 B $ 7,500,000 Bonds Series 2009 A $ 5,430,000 $ 3,343,489 Bonds Series 2011 A $ 250,000 $ 162,561 Bonds Series 2013 $ 4,390,000 $ 3,766,476 Bonds Series 2014 $ 2,020,000 $ 1,821,861 Total Amount Designated for Obligations 2. Description of Project Costs to be Paid $ 21,840,000 9,094,387 Contractual Services 50,000 Total Amount Designated for Project Costs TOTAL AMOUNT DESIGNATED SURPLUS*/(DEFICIT) 50,000 9,144,387 (18,323,672) * NOTE: If a surplus is calculated, the municipality may be required to repay the amount to overlapping taxing SECTION 4 [65 ILCS 5/11-74.4-5 (d) (6) and 65 ILCS 5/11-74.6-22 (d) (6)] FY 2015 TIF NAME: TIF No. 6 Mannheim Higgins Provide a description of all property purchased by the municipality during the reporting fiscal year within the redevelopment project area. No property was acquired by the Municipality Within the Redevelopment Project Area Property 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: SECTION 5 - 65 ILCS 5/11-74.4-5 (d) (7) (G) and 65 ILCS 5/11-74.6-22 (d) (7) (G) PAGE 1 FY 2015 TIF NAME: TIF No. 6 Mannheim Higgins SECTION 5 PROVIDES PAGES 1-3 TO ACCOMMODATE UP TO 25 PROJECTS. PAGE 1 MUST BE INCLUDED WITH TIF REPORT. PAGES 2-3 SHOULD BE INCLUDED ONLY IF PROJECTS ARE LISTED ON THESE PAGES Check here if NO projects were undertaken by the Municipality Within the Redevelopment Project Area: None ENTER total number of projects undertaken by the Municipality Within the Redevelopment Project Area and list them in detail below*. TOTAL: 11/1/99 to Date Estimated Investment for Subsequent Fiscal Year Total Estimated to Complete Project Private Investment Undertaken (See Instructions) $ - $ $ _ Public Investment Undertaken $ - $ - $ _ Ratio of Private/Public Investment 0 0 Project 1: *IF PROJECTS ARE LISTED NUMBER MUST BE ENTERED ABOVE Project 2: Private Investment Undertaken (See Instructions) $ _ Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 2: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 3: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 4: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 5: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Project 6: Private Investment Undertaken (See Instructions) Public Investment Undertaken Ratio of Private/Public Investment 0 0 Optional: Information in the following sections is not required by law, but would be helpful in evaluating the performance of TIF in Illinois. *even though optional MUST be included as part of complete TIF report SECTION 6 FY 2015 TIF NAME: TIF No. 6 Mannheim Higgins Provide the base EAV (at the time of designation) and the EAV for the year reported for the redevelopment project area Year redevelopment project area was designated Base EAV Reporting Fiscal Year EAV 2001 $ 2,136,807 $ 2,648,074 List all overlapping tax districts in the redevelopment project area. If overlapping taxing district received a surplus, list the surplus. The overlapping taxing districts did not receive a surplus. Overlapping Taxing District Surplus Distributed from redevelopment project area to overlapping districts Description and Type (Temporary or Permanent) of Jobs $ - $ $ $ $ $ $ - $ - $ - $ - $ - $ - $ - $ - $ - SECTION 7 Provide information about job creation and retention Number of Jobs Retained Number of Jobs Created Description and Type (Temporary or Permanent) of Jobs Total Salaries Paid $ $ - $ - $ - $ - $ - $ - SECTION 8 Provide a general description of the redevelopment project area using only major boundaries: Optional Documents Enclosed Legal description of redevelopment project area Map of District Attachment B Certification of the Chief Executive Officer of the municipality that the municipality has complied with all of the requirements of the Act during the reporting Fiscal Year. Re: City of Des Plaines Certificate of Compliance Tax Increment Financing District #6 — Mannheim Rd / Higgins Rd Redevelopment Project Area For Fiscal Year Ending December 31, 2015 I, Matthew J. Bogusz, the duly elected Chief Executive Officer of the City of Des Plaines, County of Cook, State of Illinois, do hereby certify that to the best of my knowledge, the City of Des Plaines complied with the requirements pertaining to the Illinois Tax Increment Redevelopment Allocation Act during the fiscal year beginning January 1, 2015 and ending December 31, 20 FIS( CITY OF DES PLAINrES TIF DISTRICT 06 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2015 AND ENDING DECEMBER 31, 2015 RE: Attorney Review City of Des Plaines Mannheim Rd / Higgins Rd TIF District #6 To Whom It May Concern: This will confirm that I am the General Counsel for the City of Des Plaines, Illinois. I have reviewed all information provided to me by the City staff and consultants, and I find that the City of Des Plaines has conformed to all applicable requirements of the Illinois Tax Increment Redevelopment Allocation Act set forth thereunder for the fiscal year beginning January 1, 2015 and ending December 31, 2015, to the best of my knowledge and belief. Sincere] General Counsel CITY OF DES PLAINES TIF DISTRICT 04 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY X, 2015 AND ENDING DECEMBER 31, 2015 Attachment D Statement setting forth all activities undertaken in furtherance of the objectives of the Redevelopment Plan, including any project implemented in the preceding fiscal year and a description of the activities undertaken [65 ILCS 5/11-74.4- 5(d)(7)(A & B) and 5/11-74.6-22(d)(7)(A & B)] TIF #6 The City of Des Plaines' sixth TIF District was established in October, 2001. The creation of this approximately 40.5 acre TIF District was in response to the City's desire to respond to the problem conditions within an important commercial intersection within the City of Des Plaines and to revitalize the area. The Plan was established to promote the development of potentially four (4) new hotels, and separate redevelopment agreements were approved in 2007 and 2008 (each agreement included two hotel projects). A commercial strip center was completed in 2007 including Starbuck's and Potbelly's as tenants. Bonds were previously issued in 2004 on behalf of this project in order to address land acquisition needs within the area, which the City completed in 2007. The City refunded a portion of debt in the reporting Fiscal Year. However, due to current economic conditions, and restrictions in the capital markets, the hotel projects have not been initiated, and the City undertook an amendment to TIF 6 in order to remove certain properties south of Pratt Avenue into an adjacent, newly created TIF 7. This will allow the City to evaluate new projects utilizing a lower Base EAV and additional time to amortize project costs. The City enlisted the participation of the taxing districts as part of an intergovernmental agreement as part of the TIF #7 designation. CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2015 AND ENDING DECEMBER 31, 2015 I. CITY OF DES PLAINES TAX INCREMENT FINANCING DISTRICT ANNUAL JOINT REVIEW BOARD MEETING MINUTES SEPTEMBER 9, 2015 Welcome by City Representative George Sakas introduced himself & welcomed everyone to today's meeting. II. Call to Order George Sakas opened the meeting at 9:57 a.m. at City Hall, 1420 Miner Street, Room 101, Des Plaines, IL III. Roll Call (in attendance) Michael Bartholomew Mary Kalou Susan Krey Karen Stephens Nelson Gray Cathy Johnson George Giese Katie Skibbe Barry Collins Also Attended: George Sakas Ilana Bromber Lauren Pruss Lauren Griffin Bob Rychlicki Gale Cerabona Wayne Serbin City Manager, City of Des Plaines Assistant Superintendent, School District 207 Assessor, Maine Township Director of Parks & Recreation, Rosemont Park District Assistant Superintendent, School District 62 Associate Superintendent, School District 214 Manager of Administration, Mt. Prospect Park District Superintendent of Business, Des Plaines Park District Public Member Director of Community & Econ. Dev., City of Des Plaines Assistant Director of Finance, City of Des Plaines Economic Development Coordinator, City of Des Plaines Administrative Assistant, City of Des Plaines Kane McKenna & Associates, Inc. / TIF Consultant Recording Secretary Resident of Des Plaines IV. Election/Confirmation of Public Member A motion was made by Michael Bartholomew, seconded by Cathy Johnson, to elect and confirm Barry Collins as Public Member for the meeting. On a voice vote: AYES: All NAYS: None Motion: CARRIES V. Election/Confirmation of Chair A motion was made by Mary Kalou, seconded by Barry Collins, to elect and confirm Director, George Sakas, as Chair for the meeting. On a voice vote: AYES: All NAYS: None Motion: CARRIES VI. Approval of Minutes of the previous Joint Review Board Meeting A motion was made by Barry Collins, seconded by Nelson Gray, to approve the November 5, 2014 minutes and waive the reading thereof. On a voice vote: AYES: All NAYS: None Motion: CARRIES VII. Review of Activities in District & VIII. Review of 2013 State Comptroller's Report George Sakas stated he wishes to rearrange the agenda and begin with TIF District No. 3. There were no objections. He then introduced Bob Rychlicki. TIF District No. 3 Overview Bob Rychlicki reminded everyone that the format, sections, and pages are derived from the State of Illinois Comptroller's Office. He noted the following sections and exhibit: • Certifications (Section 1) • Mayor's compliance (Section 2.B) • City Attorney notes the City has complied (Section 2.7) • Exhibit C (or D) references the City's audit It was noted TIF 3 is status quo and industrial in nature. There were no new redevelopments, amendments. The City's audit was noted. Fiscal activity actualized a tax revenue of $551,000 with $34 of investment income, and issuance of debt in excess of $2,700,000. Outstanding obligations/future pledges (noted on page 25) of remaining bonds are in excess of $18,000,000. Equalized Assessed Value/EAV was noted (page 30); a 35 -year TIF assessed valuation is just over $9 million. George Sakas asked if there are any questions. Barry Collins asked if bond obligations will be met. Bob Rychlicki stated the continued occupancy of the building is what's important; debt service to increases. He noted the plan is to match debt -service flow. Barry Collins surmised that the current guestimate will be close. George Sakas stated it is not to extend the 6Bs. He asked and Bob Rychlicki confirmed the expiration date is 2035 with final payment in 2036. At 10:11 a.m., Cathy Johnson departed. TIF District No. 1 Overview Bob Rychlicki noted certifications are the same as TIF District No. 3. The expiration date is 2021 with final payment in 2022. Bob Rychlicki stated there were no new redevelopments/amendments, no property or purchase, no refunding or issuing of new debt. Bob Rychlicki stated (on page 19) the property tax increment received is just over $4,779,000 with $564 in interest. Utilization, debt service, and payments were noted. Outstanding debt (noted on page 26) continues to be paid down. EAV (on page 31) is identified at over $20,262,000 with a fiscal year reporting at $65,114,297. George Sakas asked and Bob Rychlicki confirmed that the expiration date is 2021. George Sakas asked if there are any questions. Mary Kalou asked to expound on Section 3.2 #1 (noted on page 24). Bob Rychlicki explained, for the transfer, it was paid back to the City or General Fund. He stated he would provide the exact breakdown to Mary Kalou. Nelson Gray asked for an explanation of transfers in the future; Bob Rychlicki concurred. Barry Collins asked if downtown construction is complete. Michael Bartholomew advised there are 6-7 phases however the next phase will not be completed this year. TIF District No. 4 Overview Bob Rychlicki stated there is a 2019 expiration date. Certifications, etc. are the same as previous TIFs, and there is nothing new to report. He stated there were public improvements, and initially there were discussions with developers however large scale development has not occurred. Bob Rychlicki referred to (page 18) the TIF being underwater with no receipts. He stated he will follow up to see if there is anything from TIF #1 contained. Mary Kalou advised it is not contiguous. Bob Rychlicki advised the EAV (on page 30) was almost at $42 million however it decreased for various reasons. He noted the City did the right thing in terminating the TIF (at the last meeting). TIF District No.5 Overview Bob Rychlicki advised the expiration date is 2024 with final payment in 2025. He noted this is the smallest TIF; an expansion to the Metro Square project. Bob Rychlicki stated there are no new redevelopments, etc. He referred to (page 18) a property tax increment of $120,982 with $1 interest totaling $120,983. Also (on page 25) utilizations, debt service, outstanding bonds & interest were noted. EAV (page 30) is over the base of $794,000 with final reporting at over $1,900,000. George Sakas asked if there are any questions. Barry Collins stated the City's need has been met with grocery stores; Bob Rychlicki concurred and noted medical offices in Metro Square. TIF District No. 6 Overview Bob Rychlicki advised certifications are the same; redevelopment was addressed. He noted the TIF was amended (cut in half; North & South); maps are included. This TIF (like TIF #3) has a lot of debt. Bob Rychlicki noted (page 18) due to the downtown proposal, this didn't come to fruition. There was a property tax increment of $9,550 and $149 of interest totaling just over $2,000,000 of bond proceeds. Long-term debt was identified (on page 25). Bob Rychlicki advised EAV will be adjusted; going down significantly; recalibrating the base on the South end. The base EAV will be reduced from $6,802,000 to $2,648,000. He stated, hopefully, this TIF will be a better performer. TIF District No. 7 Overview Bob Rychlicki advised there was a surplus for all districts. He noted the base EAV at $468,319 with recalculation in $1,000 increments. Michael Bartholomew noted the driving factor was the property the City owned (EAV was high); no chance to build. He advised now that the EAV is low, this will create increment. City Staff is in now in the process and have narrowed developers; hope to have a development agreement by year-end. George Sakas stated this could offer a surplus. George Sakas stated the economy is improving, the toll way expansion is ending, and proposals are plentiful. Nelson Gray asked regarding the Jane Addams expansion, if there was compensation or right-of-way from IDOT. George Sakas replied — not for the City's property. Mary Kalou referred to page 25, and stated there is a deficit with no expenditures. Bob Rychlicki commented it is an estimate. Mary Kalou referenced Section 3.1. Bob Rychlicki advised that this picks up a future expenditure and is a running total. It was noted there could be a public improvement number. Bob Rychlicki stated this identifies the City's obligations. Mary Kalou noted the debt services doesn't tie in. Bob Rychlicki concurred (stating it's the State's interpretation). IX. Questions from Board, Audience Members There were none. George Sakas advised that the next meeting will be held in September, 2016. X. Adjournment A motion was made by Barry Collins, seconded by Mary Kalou, to adjourn the meeting at 10:39 a.m. On a voice vote: AYES: All NAYS: None Motion: CARRIES Respectfully submitted, Gale Cerabona Recording Secretary CITY OF DES PLAINES, ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2015 Major Governmental Funds TIF #6 Nonmajor Total (Mannheim/ Grant Funded Capital Governmental Governmental General Higgins) Gaming Tax Projects Projects Funds Funds ASSETS Cash and Investments $ 25,129,459 $ - $ 33,704,365 $ 4,097,685 $ 4,783,342 $ 14,688,010 $ 82,402,861 Receivables (net)• Property Tax Receivable 22,802,608 52,282 33,524 5,624,253 28,512,667 Other Taxes 1,158,799 - 126,055 1,284,854 Accounts Receivable 997,226 - - 379,635 76,796 1,453,657 Accrued Interest 267,717 2,981 - 32,313 303,011 Other 221,825 32 18,422 240,279 Due from Other Governments 5,806,373 2,610,157 2,137,656 1,114,749 164,571 11,833,506 Advances to Other Funds 15,702,116 - - - - 15,702,116 TOTAL ASSETS $ 72,086,123 $ 52,282 $ 36,317,503 $ 6235341 $ 6,437,337 $ 20,604,365 $ 141,732,951 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts Payable $ 1,583,040 $ $ 15,861,956 $ 1,865,939 $ 1,287,516 $ 1,017,750 $ 21,616,201 Accrued Payroll 1,627,115 23,968 - 1,651,083 Accrued Liabilities 132,265 - 132,265 Deposits Payable - - 5,839 131,460 137,299 Advances from Other Funds - 9,179,285 3,419,982 12,599,267 Unearned Revenue 168,026 - - 168,026 Total Liabilities 3,510,446 9,179,285 15,861,956 1,865,939 1,317,323 4,569,192 36,304,141 Deferred Inflows of Resources Deferred Property Tax Revenue 22,747,101 52,282 - 32,995 5,549,453 28,381,831 Unavailable Other Revenue 1,681,124 - 5,467,021 - 49,254 7,197,399 Total Deferred Inflows of Resources 24,428,225 52,282 5,467,021 32,995 5,598,707 35,579,230 Fund Balances Nonspendable Long-term Interfund Advances 15,702,116 15,702,116 Restricted Economic Development - - 4,895,473 4,895,473 Debt Retirement/Infrastructure 20,455,547 - 20,455,547 Streets & Highways - 364,274 364,274 Public Safety 1,582,538 1,582,538 Debt Service 456,984 456,984 Assigned Infrastructure 3,149,300 5,087,019 8,236,319 Capital Acquisitions 1,250,000 - 6,583,637 7,833,637 General Fund Deficit 1,705,551 1,705,551 Emergency Telephone System Transfer of Surcharge 351,000 - - 351,000 Unassigned 21,989,485 (9,179,285) (1,097,619) (3,446,440) 8,266,141 Total Fund Balances 44,147,452 (9,179,285) 20,455,547 (1,097,619) 5,087,019 10,436,466 69,849,580 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 72,086,123 $ 52,282 $ 36,317,503 $ 6,235,341 $ 6,437,337 $ 20,604,365 $ 141,732,951 See accompanying notes to financial statements. 21. CITY OF DES PLAINES, ILLINOIS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended December 31, 2015 Revenues Property Taxes Other Taxes Licenses and Permits Intergovernmental Public Charges for Services Fines, Forfeitures and Penalties Investment Income Miscellaneous Total Revenues Expenditures Current General Government Public Safety Public Works Streets and Highways Economic Development Debt Service Principal Interest and Fiscal Charges Capital Outlay Total Expenditures Excess (Deficiency) of Revenues over (under) Expenditures Other Financing Sources (Uses) Transfer In Transfer Out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances at Beginning of Year Fund Balances at End of Year Major Governmental Funds General $ 22,952,517 12,097,995 2,921,119 19,780,209 5,030,129 1,277,659 84,615 290,638 64, 434, 881 7,810,936 39,145, 089 7,037,522 4,387,902 304,357 58, 685, 806 TIF 46 (Mannheim/ Higgins) $ 52,109 52,109 1,165 990,000 159,259 Grant Funded Gaming Tax Projects Capital Projects Nonmajor Total Governmental Governmental Funds Funds $ - $ $ 33,798 $ 5,569,665 $ 28,608,089 24,654,889 5,823,739 123,896 42,700,519 - 2,921,119 8,835,076 1,845,399 30,460,684 1,317,109 765,125 7,112,363 121,451 1,399,110 40,161 3,129 3,712 58,032 189,649 80,684 237,461 608,783 24,695,050 8,838,205 7,259,042 8,721,029 114,000,316 15, 862, 826 1,150,424 15, 862, 826 5,749,075 (1,098,315) 203,335 (3,887,363) 78,609 8,811,134 1,272,203 1,441,112 1,600,000 180,332 5,888,048 10,161,946 9,109,492 120,427 23,872,798 2,944,867 42, 089, 956 8,478,634 1,178,179 14, 377,215 1,775,891 3,353,616 1,869,385 4,459,385 528,353 867,944 3,114,648 9,002,696 11, 531, 750 106, 502, 244 8,832,224 (1,323,741) (1,850,450) (2,810,721) 7,498,072 (9,808,628) 297,693 4,300,000 3,698,392 8,499,420 (912,882) (169,777) (14,778,650) (3,684,028) (9,808,628) 297,693 3,387,118 2,065,047 (1,098,315) (976,404) (1,026,048) 1,536,668 717,894 1,218,842 42,082,405 (8,080,970) 21,431,951 (71,571) 3,550,351 9,718,572 68,630,738 $ 44,147,452 $ (9,179,285) $ 20,455,547 $ (1,097,619) $ 5,087,019 $ 10,436,466 $ 69,849,580 3,528,615 (6,279,230) See accompanying notes to financial statements. 23. CITY OF DES PLAINES, ILLINOIS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2015 Special Revenue Funds Community Motor Fuel Development Asset Foreign Fire TIF #1 Tax Block Grant Seizure Insurance Tax (Downtown) ASSETS Cash and Investments $ 640,601 $ 102,810 $ 1,136,009 $ 602,292 $ 4,800,132 Receivables (Net) Property Taxes 4,796,677 Accounts Receivable - Accrued Interest - Other 18,422 Due from Other Governments 131,721 32,850 TOTAL ASSETS $ 772,322 $ 102,810 $ 1,187,281 $ 602,292 $ 9,596,809 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts Payable $ 408,049 $ 19,804 $ 94,312 $ $ 179,942 Accrued Liabilities - - Deposits Payable 112,723 18,737 Advances from Other Funds - - Total Liabilities 408,049 19,804 207,035 198,679 Deferred Inflows of Resources Deferred Property Tax Revenue Unavailable Other Revenue Total Deferred Inflows of Resources 4,722,305 4,722,305 Fund Balances Restricted Economic Development 83,006 4,675,825 Streets & Highways 364,273 - - Public Safety 980,246 602,292 Debt Service - Assigned Capital Acquisitions - Unassigned Total Fund Balances 364,273 83,006 980,246 602,292 4,675,825 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 772,322 $ 102,810 $ 1,187,281 $ 602,292 $ 9,596,809 105. Special Revenue Funds Debt Service Fund Capital Projects Funds Total TIF #7 Emergency Nonmajor TIF #3 TIF #5 (Mannheim/ Telephone Debt Equipment I.T. Governmental (Wille Road) (Perry/Lee) Higgins) System Service Replacement Replacement Funds $ $ 136,642 $ $ $ 456,556 $ 6,193,381 $ 619,587 $ 14,688,010 569,249 151,692 990 105,645 5,624,253 - - 76,796 - - 76,796 32,313 32,313 - 18,422 164,571 $ 569,249 $ 288,334 990 76,796 $ 562,201 $ 6,225,694 $ 619,587 $ 20,604,365 $ $ $ 42,199 $ 11,800 $ $ 210,304 $ 51,340 $ 1,017,750 131,460 3,274,489 129,752 15,741 3,419,982 3,274,489 171,951 27,541 210,304 51,340 4,569,192 569,249 151,692 990 105,217 5,549,453 49,254 - 49,254 569,249 151,692 990 49,254 105,217 5,598,707 (3,274,489) (3,274,489) 136,642 4,895,473 1 364,274 1,582,538 456,984 456,984 6,015,390 568,247 6,583,637 (171,951) - - (3,446,440) 136,642 (171,951) 1 456,984 6,015,390 568,247 10,436,466 $ 569,249 $ 288,334 $ 990 $ 76,796 $ 562,201 $ 6,225,694 $ 619,587 $ 20,604,365 106. CITY OF DES PLAINES, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2015 Special Revenue Funds Community Motor Fuel Development Asset Foreign Fire TIF #1 Tax Block Grant Seizure Insurance Tax (Downtown) Revenues Taxes Intergovernmental 1,426,848 Public Charges for Services Fines, Forfeitures and Penalties - Investment Income 251 Miscellaneous Total Revenues 1,427,099 347,763 70,788 121,451 1,834 20,264 347,763 214,337 $ 123,896 $ 4,758,567 3,547 3,685 913 14,335 131,128 4,773,815 Expenditures Current: General Government _ Public Safety - 351,208 130,143 Streets and Highways 1,178,179 - - Economic Development - 135,668 1,503,979 Debt Service Principal 1,318,885 Interest and Fiscal Charges - 188,829 Capital Outlay 439,642 236,872 299,206 1,011,613 Total Expenditures 1,617,821 372,540 650,414 130,143 4,023,306 Excess (Deficiency) of Revenues over (under) Expenditures Other Financing Sources (Uses) Transfers In Transfers Out (7,200) (118,988) Total Other Financing Sources (Uses) (7,200) (118,988) Net Change in Fund Balances (190,722) (24,777) (436,077) (6,215) 631,521 Fund Balances at Beginning of Year 554,995 107,783 1,416,323 608,507 4,044,304 Fund Balances at End of Year $ 364,273 $ 83,006 $ 980,246 $ 602,292 $ 4,675,825 (190,722) (24,777) (436,077) 985 750,509 107. Special Revenue Funds Debt Service Fund Capital Projects Funds Total TIF #7 Emergency Nonmajor TIF #3 TIF #5 (Mannheim/ Telephone Debt Equipment I.T. Governmental (Wille Road) (Perry/Lee) Higgins) System Service Replacement Replacement Funds $ 547,683 $ 153,224 $ 904 $ $ 109,287 $ $ $ 5,693,561 1,845,399 765,125 765,125 121,451 9 2 51,442 34 58,032 199,177 237,461 547,692 153,226 904 765,125 109,287 250,619 34 8,721,029 2,463,516 835 783 134,626 58,907 61,520 120,427 2,944,867 1,178,179 1,775,891 358,000 95,000 85,000 12,500 1,869,385 298,713 16,031 24,780 - 528,353 - - 792,761 334,554 3,114,648 657,548 111,814 134,626 2,463,516 109,780 864,168 396,074 11,531,750 (109,856) 41,412 (133,722) (1,698,391) (493) (613,549) (396,040) (2,810,721) 1,698,392 1,500,000 500,000 3,698,392 (5,360) (38,229) - - - (169,777) (5,360) (38,229) 1,698,392 1,500,000 500,000 3,528,615 (115,216) 41,412 (171,951) 1 (493) 886,451 103,960 717,894 (3,159,273) 95,230 457,477 5,128,939 $ (3,274,489) $ 136,642 $ (171,951) $ 1 $ 456,984 $ 6,015,390 $ 568,247 $ 10,436,466 464,287 9,718,572 108. CITY OF DES PLAINES, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL TIF #1 (DOWNTOWN) FUND Year Ended December 31, 2015 With Comparative Actual Amounts for the Year Ended December 31, 2014 2015 Variance from Final Budget Original and Positive Final Budget Actual (Negative) 2014 Actual Revenues Property Taxes $ 4,351,233 $ 4,758,567 $ 407,334 $ 4,779,373 Investment Income 600 913 313 564 Miscellaneous - 14,335 14,335 - Total Revenues 4,351,833 4,773,815 421,982 4,779,937 Expenditures Economic Development Salaries 6,300 6,300 2,530 Benefits 481 - 481 532 Contractual Services 1,036,801 1,022,256 14,545 906,134 Commodities 256,650 481,723 (225,073) 477,289 Capital Outlay 3,015,000 1,011,613 2,003,387 909,643 Total Economic Development 4,315,232 2,515,592 1,799,640 2,296,128 Debt Service Principal 1,725,484 1,318,885 406,599 1,289,798 Interest and Fiscal Charges 188,893 188,829 64 216,704 Total Debt Service 1,914,377 1,507,714 406,663 1,506,502 Total Expenditures 6,229,609 4,023,306 2,206,303 3,802,630 Excess (Deficiency) of Revenues over (under) Expenditures Other Financing Sources (Uses) Transfer Out Payment to Refunding Bond Escrow Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance at Beginning of Year Fund Balance at End of Year (1,877,776) 750,509 (118,988) (118,988) $ (1,996,764) (118, 988) 2,628,285 977,307 (205, 210) (3,048,390) (118, 988) (3,253,600) 631,521 $ 2,628,285 (2,276,293) 4,044,304 6,320,597 $ 4,675,825 $ 4,044,304 CITY OF DES PLAINES, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL TIF #3 (WILLE ROAD) FUND Year Ended December 31, 2015 With Comparative Actual Amounts for the Year Ended December 31, 2014 Revenues Taxes Investment Income Total Revenues Expenditures Economic Development Contractual Services Total Economic Development Debt Service Principal Interest and Fiscal Charges Total Debt Service Total Expenditures Excess (Deficiency) of Revenues over (under) Expenditures Other Financing Sources (Uses) Transfers Out Issuance of Debt Payment to Refunding Bond Escrow Premium on Bond Issuance Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance at Beginning of Year Fund Balance at End of Year 2015 Original and Final Budget $ 550,070 10 550,080 10,059 Actual $ 547,683 9 Variance from Final Budget Positive (Negative) 2014 Actual $ (2,387) $ 551,258 (1) 34 547,692 (2,388) 835 9,224 10,059 835 9,224 363,000 358,000 5,000 296,934 298,713 (1,779) 659,934 656,713 3,221 669,993 657,548 12,445 (119,913) (109,856) 10,057 (5,360) (5,360) (5,360) (5,360) $ (125,273) (115,216) (3,159,273) $ (3,274,489) 10,057 551,292 512 512 324,000 386,439 710,439 710,951 (159,659) (6,275) 2,720,000 (3,310,581) 77,035 (519,821) (679,480) (2,479,793) $ (3,159,273) 112. CITY OF DES PLAINES, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL TIF #4 (FIVE CORNERS) FUND Year Ended December 31, 2015 With Comparative Actual Amounts for the Year Ended December 31, 2014 2015 Variance from Final Budget Original and Positive 2014 Final Budget Actual (Negative) Actual Revenues Taxes $ 24,797 $ $ (24,797) $ (51,251) Total Revenues 24,797 - (24,797) (51,251) Expenditures Economic Development Contractual Services 47,940 47,940 13,624 Commodities 5,000 - 5,000 1,740 Capital Outlay - - 592,700 Total Expenditures 52,940 52,940 608,064 Excess (Deficiency) of Revenues over (under) Expenditures (28,143) Other Financing Sources (Uses) Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance at Beginning of Year Fund Balance at End of Year (41, 318) (41, 318) $ 69,461 28,143 (659,315) 215,196 41,318 (40,487) 41,318 174,709 - $ 69,461 (484,606) 484,606 113. CITY OF DES PLAINES, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL TIF #5 (PERRY/LEE) FUND Year Ended December 31, 2015 With Comparative Actual Amounts for the Year Ended December 31, 2014 2015 Variance from Final Budget Original and Positive 2014 Final Budget Actual (Negative) Actual Revenues Taxes $ 120,982 $ 153,224 $ 32,242 $ 120,982 Investment Income 30 2 (28) 1 Total Revenues 121,012 153,226 32,214 120,983 Expenditures Economic Development Contractual Services 5 783 (778) 45 Total Economic Development 5 783 (778) 45 Debt Service Principal 95,000 95,000 - 95,000 Interest and Fiscal Charges 16,037 16,031 6 17,937 Total Debt Service 111,037 111,031 6 112,937 Total Expenditures 111,042 111,814 (772) 112,982 Net Change in Fund Balance $ 9,970 41,412 $ 31,442 8,001 Fund Balance at Beginning of Year 95,230 87,229 Fund Balance at End of Year $ 136,642 $ 95,230 114. CITY OF DES PLAINES, ILLINOIS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL TIF #7 (MANNHEIM/HIGGINS) FUND Year Ended December 31, 2015 With Comparative Actual Amounts for the Year Ended December 31, 2014 2015 Variance from Final Budget Original and Positive Final Budget Actual (Negative) Revenues Taxes $ $ 904 $ 904 Total Revenues 904 904 Expenditures Economic Development Contractual Services 153,000 134,525 18,475 Commodities 101 (101) Capital Outlay 2,000,000 2,000,000 Total Expenditures 2,153,000 134,626 2,018,374 2014 Actual Excess (Deficiency) of Revenues over (under) Expenditures (2,153,000) (133,722) 2,019,278 Other Financing Sources (Uses) Transfers Out (38,229) (38,229) Total Other Financing Sources (Uses) (38,229) (38,229) Net Change in Fund Balance $ (2,191,229) (171,951) $ 2,019,278 Fund Balance at Beginning of Year Fund Balance at End of Year $ (171,951) $ 115. Crowe Ho Crowe Horwath LLP Independent Member Crowe Horwath International INDEPENDENT ACCOUNTANT'S REPORT ON COMPLIANCE To the Honorable Mayor And Members of the City Council City of Des Plaines, Illinois Des Plaines, Illinois 60016 We have examined the City of Des Plaines, Illinois', (City's) compliance with the requirements of subsection (q) of Section 11-74.4-3 of the Illinois Tax Increment Redevelopment Allocation Act during the year ended December 31, 2015. Management is responsible for the City's compliance with those requirements. Our responsibility is to express an opinion on the City's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants and accordingly, included examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination of the City's compliance with specified requirements. In our opinion, the City complied in all material respects, with the aforementioned requirements for the year ended December 31, 2015. Crowe Horwath LLP Oak Brook, Illinois June 15, 2016 222.