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Des Plaines TIF No. 1 ATR FY 2014CITY OF DES PLAINES TAX INCREMENT FINANCING DISTRICT NO. 1 DOWNTOWN TIF DISTRICT ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 City of Des Plaines Tax Increment Financing District No. 1 Downtown TIF District Table of Contents SECTION TITLE PAGE 1.0 Name of Redevelopment Project Area and Contact Information 1 2.0 Redevelopment Project Information 3 Attachment A Amendments to the Redevelopment Plan, the Redevelopment Project and/or Area Boundary 4 Attachment B Certification of the Chief Executive Officer of the municipality that the municipality has complied with all of the requirements of the TIF Statute (the "Act") during the reporting Fiscal Year. 5 Attachment C Opinion of legal counsel that the municipality is in compliance with the Act 7 Attachment D Statement setting forth all activities undertaken in furtherance of the objectives of the Redevelopment Plan 9 Attachment E Description of Agreements Regarding Property Disposition or Redevelopment 10 Attachment F Additional Information on Uses of Funds Related to Achieving Objectives of the Redevelopment Plan 11 Attachment G Information Regarding Contracts with TIF Consultants 12 Attachment H Reports Submitted by Joint Review Board 13 Attachment I Summary of any obligations issued by the municipality and official statements 14 Attachment J Financial Analysis: TIF Obligations 15 Attachments For special tax allocation funds that have experienced cumulative K and L deposits of incremental tax revenues of $100,000 or more, a certified audit report reviewing compliance with the Act. 16 CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 SECTION TITLE PAGE Attachment M Intergovernmental Agreements 17 3.1 Analysis of Special Tax Allocation Fund 18 3.2 Itemized List of Expenditures from Special Tax Allocation Fund 20 3.3 Special Tax Allocation Fund Balance (end of reporting period) 25 4.0 Property purchased by the municipality within the Redevelopment Project Area 27 5.0 Review of Public and Private Investment 29 6.0 Optional Sections 31 Exhibit A Exhibit B Joint Review Board Minutes Audit and Compliance Letter CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 Section 1. Name of Redevelopment Project Area and Contact Information Refer to chart attached. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 FY 2014 ANNUAL TAX INCREMENT FINANCE REPORT Name of Municipality; Des Plaines County: Cook Unit Code: 016/140/30 Reporting Fiscal Year: Fiscal Year End: 2014 12/31/2014 First Name: Michael TIF Administrator Contact Information Address: 1420 Miner Street Last Name: Bartholomew Title: City Manager Telephone: 847/391-5488 Clty: Des Plaines Zip: E-mail mbartholomew@desplaines.org Mobile Best way to x Email _x_Phone Provider contact Mobile Mail Mobile na 60016 na I attest to the best of my knowledge, this report of the redevelopment project areas in: CityNiilage of Des Plaines Is complete and accurate at the end of this reporting Fiscal year under the Tax Increment Allocation Redevelopment Act [65 ILCS 5/11-74.4-3 et. spa. Or the Industrial Jobs Recovery Law 165 ILCS 5/11-74.6-10 et. sea.1 Date Written signature of TIF Administator Section 1 (65 ILCS 5/11-74.4-5 (d) (1.5) and 65 ILCS 5/11-74.6-22 (d) (1.5)* FILL OUT ONE FOR EACH TIF DISTICT Name of Redevelopment Project Area Date Designated Date Terminated TIF No. 1 Downtown* 7/15/1985 TIF No. 3 Willie Road Mt. Prospect Road 8/7/2000 TIF No. 4 Five Corners Rand Road 10/2006 11/19/2014 TIF No. 5 Lee Street Perry Street 4/21/2001 TIF No. 6 Mannheim - Higgins Road 10/15/2001 TIF No. 7 Higgins Road and Pratt Avenue 10/20/2014 statutory citations refer to one of two sections of the Illinois Municipal Code: the Tax Increment Allocation Redevelopment Act [65 ILCS 5111-74.4-3 et. seq.] or the industrial Jobs Recovery Law [65 ILCS 5/11-74.6-10 et. seq.] 2 SECTION 2 [Sections 2 through 5 must be completed for each redevelopment project area listed in Section 1.] FY 2014 Name of Redevelopment Project Area: TIF 1 Downtown Primary Use of Redevelopment Project Area*: CBD 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. 3 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 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 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. 3 Attachment A Amendments to the Redevelopment Plan, the Redevelopment Project and/or the Area Boundary There were no amendments to the Redevelopment Plan or to the Redevelopment Project Area within the reporting Fiscal Year. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 4 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. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 5 RE: Attorney Review City of Des Plaines Downtown TIF District #1 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, 2014 and ending December 31, 2014, to the best of my knowledge and belief. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 8 Attachment C Opinion of legal counsel that the municipality has complied with the Act. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 7 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 #1— Downtown. For Fiscal Year Ending December 31, 2014 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 All, : tion Act during the fiscal year beginning January 1, 2014 and ending December 31, 20 41 11 �r� — N d 0 1 MA OR fr/A/ c CITY OF DES PLAINES TIFDISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 6 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 #1 The City of Des Plaines' (the "City's") first TIF District was established in July, 1985 and was originally known as the City's Ellinwood TIF Redevelopment Plan and Project Area. The creation of this original approximately 24+ acre TIF District was in response to downturns that were occurring in the mid 1980's following several recessions and a marked decline in private investment and less federal assistance available to address the City's capital needs. Several major projects that had been initiated during the 1970's growth period were still incomplete and the Plan was established to assist in attracting stronger anchors to the downtown commercial district, address access, circulation and parking issues, improve the character and amenities within the downtown. Several series of General Obligation Bonds were issued on behalf of the project, and the City proceeded to purchase several redevelopment parcels and undertake redevelopment activities. The TIF District was amended again in 1992, 1994, and 1997, including legislative approval of a 12 year extension to the term of the TIF district. The City also refunded a portion of some of the bond debt in the reporting fiscal year. Since the late 1990's, the City's Downtown TIF District #1 has redeveloped pursuant to the objectives of the TIF Plan. In terms of overall ownership and investment into the area, and through increased utilization of previously vacant and/or blighted and obsolete parcels within the RPA, the TIF District has encouraged the redevelopment of this central portion of the City. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 9 Attachment E Description of 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)] TIF #1 Currently, the City has several outstanding financial obligations covering TIF #1 which have been issued for public purposes or on behalf of private investors, all of which are payable with the current TIF District's existing and future revenues. The City has also issued two (2) TIF Revenue Notes on behalf of two (2) Downtown TIF #1 projects, namely the River Mill TIF Revenue Note, Series 2002 for $408,000 @ 5.25% (condominium development project) and the Lab Graceland TIF Revenue Note, Series 2003 for $471,000 @ 5.25% (Walgreens development project), and the River Plaines "pay as you go note" initially approved in 2007. There were no new redevelopment agreements approved for this area in the reporting fiscal year. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 10 Attachment F Additional Information on 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)] The City of Des Plaines continued to implement the primary objectives of the TIF #1 and TIF #5 Redevelopment Plan and Projects ( TIF #5 is contiguous to TIF #1) by assisting in "creating a favorable business and residential environment while improving the physical condition of such properties, while also allowing business properties to provide better service to the citizens of Des Plaines". City officials and staff worked expeditiously to monitor the inflow and outflow of tax receipts generated by the new and enhanced retail centers so as to continue in the "creation of a strong and attractive central business district, symbolic of Des Plaines". Additionally, the City has continued to designate funds to address parking, circulation, attraction of a grocery store, mitigation of blight, preservation, increase in multi -family housing and safety objectives for the area. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 11 Attachment G Information regarding contracts that TIF advisors or consultants have entered into with entities or persons 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)] The City utilized the services of Kane, McKenna and Associates, Inc. during the previous fiscal year in order to assist in monitoring the TIF Districts regarding their financial condition, with respect to the annual JRB meeting and with respect to development project negotiations. Fees were based upon hourly rates for services rendered and did not include contingent payments. These fees were included in the City's annual anticipated budgets and did not exceed the City's estimates. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 12 Attachment H Reports Submitted by Joint Review Board. No reports were submitted by the Joint Review Board. The Board met on November 5, 2014. Minutes of the meeting are attached as Exhibit A. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 13 Attachment I Summary of any obligations issued by the municipality and official statements No new obligations were issued by the City in the reporting Fiscal Year CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 14 Attachment J Financial Analysis: TIF Obligations The City continued to monitor the payment of existing obligations and reviewed the tax flows associated with current projects in order to determine coverage. Outstanding principal amounts, as well as future interest payments, associated with existing debt are summarized in Section 3.3 below. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 15 Attachments K and L For special tax allocation funds that have experienced cumulative deposits of incremental tax revenues of $100,000 or more, a certified audit report reviewing compliance with the Act performed by an independent public accountant certified and licensed by the authority of the State of Illinois. 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. Relevant portions of the City's audit and the compliance letter are attached as Exhibit B. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 16 Attachment M Intergovernmental Agreements No payments were made in the reporting Fiscal Year. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 Section 3.1 Analysis of Special Tax Allocation Fund Refer to table attached. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 18 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 2014 TIF NAME: No.1 Downtown Fund Balance at Beginning of Reporting Period $ 6,320,597 Revenue/Cash Receipts Deposited in Fund During Reporting FY: Reporting Year Cumulative* % of Total Property Tax Increment $ 4,779,373 $ 70,091,268 60% State Sales Tax Increment 0% Local Sales Tax Increment 0% State Utility Tax Increment 0% Local Utility Tax Increment 0% Interest $ 564 $ 2,439,355 2% Land/Building Sale Proceeds $ 3,147,070 3% Bond Proceeds $ 39,966,245 34% Transfers from Municipal Sources $ 787,900 1% Private Sources $ 150,000 0% Other (identify source ; if multiple other sources, attach $ 218,869 0% 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 'Reporting Year' is populated $ 4,779,937 $ 116,800,707 100% $ 7,056,230 $ 7,056,230 $ (2,276,293) $ 4,044,304 * 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) 19 $ (5,775,040) Section 3.2 Itemized List of Expenditures from Special Tax Allocation Fund Refer to tables attached. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 FY 2014 TIF NAME: No.1 Downtown SECTION 3.2 A- (65 ILCS 5/11-74.4-5 (d) (5) and 65 ILCS 5/11-74.6-22 (d) (5)) 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, contractual services 703,534 Transfers - Admin. Costs 205,210 908,744 2. Cost of marketing sites—Subsections (q)(1.6) and (o)(1.6) 3. Property assembly, demolition, site preparation and environmental site improvement costs. Subsection (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) Commodities 682,951 Capital Outlay 909,643 1,592,594 6. Costs of removing contaminants required by environmental laws or rules (o)(6) - Industrial Jobs Recovery TIFs ONLY 21 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. Subsection (q) (6) and (o)(8) Debt Service 1,506,502 Payment to Bond Escrow 3,048,390 4,554,892 9. Approved 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. 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) 22 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 7,056,230 23 Section 3.2 B FY 2014 TIF NAME: No.1 Downtown 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 1646 River Street LLC TIF #1 Increment Taxes - River Plaines 407,428.45 All Cleaners Incorporated Contractual Snow Removal 16,840.00 Christopher B Burke Engineering LTD Phase 2- Design Engineering Phase 3 - Design Engineering 229,940.50 ComEd Maint. Public improvements 14,495.41 Duo -Gard Industries Inc Miner St. Bus Shelter 17,567.00 Great Lakes Snow Systems Inc Maint. Public improvements 30,862.50 J Gill & Company Parking Deck Repairs 200,000.00 JB Metal Works Inc Miner St Outdoor Dining Furniture 35,500.00 Lab Graceland Development Contractual - redevelopment pmt. 43,243.99 Local Coffee Tea & Sweets LLC, The Business Assistance Grant 18,897.25 Lorusso Cement Contractors Inc Phase I - Construction Contractor Phase 2 - Construction Contractor 846,188.02 Norwood Partnership LLC TIF Incentive 40,879.04 Perfect Cleaning Service Maint. Public improvements 14,999.94 Program One Professional Building Services Inc Maint. Public improvements 12,640.00 Rosborough Partners Inc Landscape Maintenance 69,214.68 Spaceco Inc Phase I -Construction Engineering Phase 2 - Construction Engineering 80,257.10 Tammen Group, The Economic Development Consulting Services 11,780.00 Tap House Grill Business Assistance/Facade Rehab 80,000.00 Temple Display LTD Public Improvements 16,647.00 Total Parking Solutions Inc Public Improvements 19,077.60 Tuscany Construction Inc Train Station Remodeling 129,780.96 Walker Parking Consultants Parking Deck Repair -Design 29,849.35 Bond and Escrow Funds Debt Service, Refunding $ 4,554,892.00 24 Section 3.3 Special Tax Allocation Fund Balance (end of reporting period). Refer to table attached. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 25 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 2014 TIF NAME: No.1 Downtown FUND BALANCE, END OF REPORTING PERIOD 1. Description of Debt Obligations $ 4,044,304 Amount of Original Issuance Amount Designated Bonds Series 2005 F $ 4,725,000 Bonds Series 2007 B $ 510,000 $ 137,410 Bonds Series 2008 A $ 1,334,000 $ 369,247 Bonds Series 2011A $ 1,555,000 $ 1,152,775 Bonds Series 2012 Refunding $ 3,765,000 $ 3,018,174 Bonds Series 2013 Refunding $ 2,990,000 $ 2,887,000 Total Amount Designated for Obligations 2. Description of Project Costs to be Paid $ 14,879,000 $ 7,564,606 River Mill obligation - $462,389 $ 245,274 LAB Graceland obligation - $471,000 $ 259,464 Public improvements $ 900,000 Project costs $ 500,000 Property assembly $ 350,000 Total Amount Designated for Project Costs TOTAL AMOUNT DESIGNATED SURPLUS*/(DEFICIT) $ 2,254,738 $ 9,819,344 $ (5,775,040) * NOTE: If a surplus is calculated, the municipality may be required to repay the amount to overlapping taxing 26 Section 4.0 A description of all property purchased by the municipality within the Redevelopment Project Area including: A. Street Address B. Approximate size or description of property C. Purchase Price D. Seller of property Refer to table attached. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 27 SECTION 4 [65 ILCS 5/11-74.4-5 (d) (6) and 65 ILCS 5/11-74.6-22 (d) (6)] FY 2014 TIF NAME: No.1 Downtown Provide a description of all property purchased by the municipality during the reporting fiscal year within the redevelopment project area. _X_ 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: 28 Section 5.0 Review of Public and Private Investment. Refer to table attached. CITY OF DES PLAINES TIF DISTRICT#1 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2014 AND ENDING DECEMBER 31, 2014 29 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 2014 TIF NAME: No.1 Downtown 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: ENTER total number of projects undertaken by the Municipality Within the Redevelopment Project Area 4 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) $ 106,813,152 $ - $ 142,000,000 Public Investment Undertaken $ 32,277,748 $ - $ 33,927,748 Ratio of Private/Public Investment 4 5/27 Project 1: *IF PROJECTS ARE LISTED NUMBER MUST BE ENTERED ABOVE Metropolitan Square Private Investment Undertaken (See Instructions) $ 45,140,627 $ 60,000,000 Public Investment Undertaken $ 31,398,748 $ 31,398,748 Ratio of Private/Public Investment 1 7/16 1 41/45 Project 2: River Mill Private Investment Undertaken (See Instructions) $ 29,460,295 $ 30,000,000 Public Investment Undertaken $ 408,000 $ 408,000 Ratio of Private/Public Investment 72 19/92 73 9/17 Project 3: LAB Graceland Private Investment Undertaken (See Instructions) $ 12,000,000 $ 12,000,000 Public Investment Undertaken $ 471,000 $ 471,000 Ratio of Private/Public Investment 25 43/90 25 43/90 Project 4: Everleigh Condos Private Investment Undertaken (See Instructions) $ 20,212,230 $ 40,000,000 Public Investment Undertaken $ 1,650,000 Ratio of Private/Public Investment 0 24 8/33 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 2014 TIF NAME: No.1 Downtown 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 1985 $ 20,262,187 $ 65,114,297 List all overlapping tax districts in the redevelopment project area. If overlapping taxing district received a surplus, list the surplus. _X_ The overlapping taxing districts did not receive a surplus. Overlapping Taxing District Surplus Distributed from redevelopment project area to overlapping districts Surplus payment $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 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 31 EXHIBIT A I. CITY OF DES PLAINES TAX INCREMENT FINANCING DISTRICT ANNUAL JOINT REVIEW BOARD MEETING MINUTES NOVEWMBER 5, 2014 Welcome by City Representative George Sakas introduced himself & welcomed everyone to today's meeting. II. Call to Order George Sakas opened the meeting at 10 a.m. at City Hall, 1420 Miner Street, Room 101, Des Plaines, IL III. Roll Call (in attendance) Michael Bartholomew Mary Kalou Walter Kazmierczak Karen Stephens Nelson Gray Bill Dussling Sherry Koerner Ruth Gloede George Giese John Bellows Don Miletic Katie Skibbe Barry Collins Also Attended: George Sakas Dorothy Wisniewski Linda Krania Jon Duddles Dick Sayad Chan Yu Lauren Griffin Bob Rychlicki Gale Cerabona City of Des Plaines, City Manager Assistant Superintendent, School District 207 Trustee, Maine Township Rosemont Park District, Director of Parks & Recreation Assistant Superintendent, School District 62 School Board President, School District 214 Director of Business Services, School District 214 Assistant Superintendent, School District 59 FOIA Officer, Mt. Prospect Park District Human Resources, Mt. Prospect Executive Director, Des Plaines Park District Superintendent of Business, Des Plaines Park District Public Member Director of Community & Econ. Dev., City of Des Plaines Director of Finance, City of Des Plaines Director of Media, City of Des Plaines Asst. Dir. of Publ. Works&Engineering, City of Des Plaines Alderman / City Council, City of Des Plaines Associate Planner, City of Des Plaines Administrative Assistant, City of Des Plaines Kane McKenna & Associates, Inc. / TIF Consultant Recording Secretary IV. Election/Confirmation of Public Member A motion was made by Michael Bartholomew, seconded by Don Miletic, to elect & 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 Michael Bartholomew, 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 Previous Joint Review Board Meetings George Sakas advised today's agenda includes the TIF 6&7 minutes (2013 & 2014). A motion was made by Nelson Gray, seconded by Barry Collins, to approve the August 27, 2013, minutes with correction of typo on page 3, under TIF District No. 1, 3d paragraph, to be spelled as "main". On a voice vote: AYES: All NAYS: None Motion: CARRIES A motion was made by Mary Kalou, seconded by Michael Bartholomew, to approve the August 20, 2014, minutes for TIF District Nos. 6 & 7. On a voice vote: AYES: All NAYS: None ABSTAIN: Dussling Motion: CARRIES VII. Review of Activities in District George Sakas stated he wishes to rearrange the agenda to begin with TIF District No. 3. There were no objections. TIF District No. 3 Overview Bob Rychlicki stated the format is the same regarding content (State Comptroller's Office provides report to City of Des Plaines). Certifications were noted (Section 1). Certifications were identified from the Mayor (page 7) & the City Attorney (page 9). Exhibit C (or D) was referenced along with the City's audit; dollars are spent in compliance. Activities were noted (Section 2). There were no amendments. Debt, refunding issue were noted. In the last component of the report (page 18), the City identified fiscal activity. $489,000 TIF revenue was received, bonds are at $579,937 for an approximate total of $1,069.000. 95% is utilized for debt services. Revenues were noted. Equalized Assessed Value/EAV is noted (page 30); a 35 -year TIF assessed valuation is just over $10 million. Ruth Gloede stated/asked: • in 2011, it was 12.4, in 2012 it was 11.1, and in 2014 it's 10.0 which is not unusual; Bob Rychlicki concurred. • asked if there are new incentives for industrial properties. Michael Bartholomew stated — not at this time; 2 incentives are already in place. • asked about the following, & Dorothy Wisniewski responded: Bond Type AA2 Interest Rate 5.85% originally, now 2.25% Bill Dussling asked: • if redevelopment of the TIF is complete. Bob Rychlicki responded — yes • if the original TIF was for 14 years, and it's now 35 years. Bob Rychlicki advised — yes • if this TIF is contiguous with others. Bob Rychlicki responded — no George Sakas asked if there were any questions; there were none. TIF District No. 1 Overview Bob Rychlicki noted certifications are the same. From 1/31/2013-12/31/2013, there were no amendments, no redevelopments, & no bond issues. TIF District No. 3 was included. The City took on various projects (pages 18-19). This is the City's oldest & largest TIF (land mass & tax parcels) -- $4,797.68. Amounts for utilization were contractual. Public improvements, new construction total $6,796,374. The City's obligations were noted (page 26); outstanding bonds & new projects (page 41). Base EAV is over $20 million; last tax year was over $75 million. Mary Kalou asked what we billed. Michael Bartholomew advised — it goes from building storefront to sidewalks to water main work. Barry Collins asked if this streetscape project will continue in 2014. Jon Duddles replied -- this is in 7 phases. Nelson Gray asked if the TIF will end early. Michael Bartholomew responded — this has not been discussed. Don Miletic asked if more properties will be purchased. Michael Bartholomew stated — nothing is on the table. TIF District No. 4 Overview Bob Rychlicki stated there was no activity, amendments, refunding, redevelopments, or acquisitions. This TIF impacts the downturn (page 18); very minimal earnings of $1,900 + $1 interest. Dollars were based on last year's installment. There is a positive fund balance. Base EAV (page 30) was $42 million. Now EAV is below that. No increment is noted for next year. George Sakas referred to the October notice indicating the dissolving of the TIF. Barry Collins asked if there's been any qualifying interest in development. Michael Bartholomew stated — yes, there was interest early on but no commitment. Bob Rychlicki noted that financing & interest has dried up. TIF District No.5 Overview Bob Rychlicki noted this is the City's smallest district. Has the same series of certifications. Status quo on the plan. No property acquired. There has been a downturn (page 18) -- $94,000 last year. City's obligations, bonds were noted (page 25). EAV (page 30) is over the base — in excess of $3 million. Property is still occupied; does cover debt service. George Sakas asked if there were any questions; there were none. TIF District No. 6 Overview George Sakas noted this is a 2013 report. Bob Rychlicki noted the City amended TIF District No. 6 & added TIF District No. 7 (based on financial downward trend). Same series of certifications. No activities, redevelopment agreements. Lack of development (page 18); over $7,000 received. Fiscal activity was noted with debt service payments. The districts & review prompted the changing of boundaries & development. Amendments were noted (page 30). George Sakas asked if there were any questions. Nelson Gray asked about the interest rate & Dorothy Wisniewski responded — 2.3%. VIII. Review of 2013 State Comptroller's Report There was none. IX. Questions from Board, Audience Members There were none. George Sakas requested the next meeting to be in August, 2015. These TIFs along with TIF District Nos. 4 & 7 will be included. X. Adjournment A motion was made by Michael Bartholomew, seconded by Barry Collins, to adjourn the meeting at 10:35 a.m. On a voice vote: AYES: All NAYS: None Motion: CARRIES Respectfully submitted, Gale Cerabona Recording Secretary EXHIBIT B Crowe Horwath_ Crowe Horwath LLP Independent Member Crowe Horwath International INDEPENDENT ACCOUNTANTS 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, 2014. 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, 2014. Crowe Horwath LLP Oak Brook, Illinois June 8, 2015 217. CITY OF DES PLAINES, ILLINOIS BALANCE SHEET GOVERNMENTAL FUNDS December31, 2014 Major Governmental Funds TIF #6 Nonmajor Total (Mannheim/ Capital Governmental Governmental General Higgins) Gaming Tax Projects Funds Funds ASSETS Cash and Investments $ 23,982,499 $ $ 34,732,920 $ 3,259,857 $ 14,094,379 $ 76,069,655 Receivables (net) Property Tax Receivable 22,789,813 18,461 - 33,874 5,213,021 28,055,169 Other Taxes 1,179,672 141,448 - 1,321,120 Accounts Receivable 1,174,419 620,646 - 1,795,065 Accrued Interest 265,331 4,541 1,531 271,403 Other 204,076 2,611,508 - 5,138 2,820,722 Due from Other Governments 6,267,850 1,147,255 1,382,804 8,797,909 Advances to Other Funds 13,885,051 - - 13,885,051 TOTAL ASSETS $ 69,748,711 $ 18,461 $ 37,348,969 $ 5,203,080 $ 20,696,873 $ 133,016,094 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts Payable $ 1,412,518 $ 1,956 $ 15,917,018 $ 1,602,341 $ 1,067,630 $ 20,001,463 Accrued Payroll 1,580,295 13,318 2,718 1,596,331 Accrued Liabilities 110,671 - 110,671 Deposits Payable 4,075 138,999 143,074 Advances from Other Funds - 8,081,489 - - 3,158,547 11,240,036 Unearned Revenue 229,379 - - - 229,379 Total Liabilities 3,332,863 8,083,445 15,917,018 1,619 734 4,367,894 33,320,954 Deferred Inflows of Resources Deferred Property Tax Revenue 22,743,904 15,986 32,995 5,080,477 27,873,362 Unavailable Other Revenue 1,589,539 - - 1,601,501 3,191,040 Total Deferred Inflows of Resources 24,333,443 15,986 32,995 6,681,978 31,064,402 Fund Balances Nonspendable Long-term lnterfund Advances 13,885,051 13,885,051 Restricted Economic Development - 4,247,317 4,247,317 Debt Retirement/Infrastructure 21,431,951 - 21,431,951 Streets & Highways - 554,995 554,995 Public Safety 2,024,830 2,024,830 Debt Service 457,477 457,477 Assigned Infrastructure 5,950,000 3,550,351 9,500,351 Capital Acquisitions 2,300,000 - 5,593,226 7,893,226 Streets & Highways 200,000 200,000 Pension Funding 700,000 700,000 Unassigned 19,047,354 (8,080,970) (3,230,844) 7,735,540 Total Fund Balances 42,082,405 (8,080,970) 21,431,951 3,550,351 9,647,001 68,630,738 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 69,748,711 $ 18,461 $ 37,348,969 $ 5,203,080 $ 20,696,873 $ 133,016,094 See accompanying notes to financial statements. 21. CITY OF DES PLAINES, ILLINOIS RECONCILIATION OF GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION December 31, 2014 Total Fund Balances - Governmental Funds $ 68,630,738 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds: Capital Assets Accumulated Depreciation $ 305,059,302 (107,812,854) Net Capital Assets 197,246,448 Some receivables that are not currently available are reported as deferred inflows of resources in the fund financial statements but are recognized as revenue when earned in the government -wide statements. Gains/Losses related to the refunding of long-term debt are deferred and amortized over the life of the debt issue in the statement of net position. Generally, interest on long-term debt is not accrued in governmental funds, but rather is recognized when due. The net pension assets of the police and firefighters pension funds are included in the governmental activities in the statement of net position. Some liabilities reported in the statement of net position do not require the use of current financial resources and therefore are not reported as liabilities in governmental funds. These liabilities consist of: Compensated Absences Payable (2,364,367) General Obligation Bonds Payable (7,020,000) TIF General Obligation Bonds Payable (33,658,625) TIF Revenue Bonds Payable (423,590) Unamortized Bond Premiums & Discounts (386,636) Installment Notes Payable (187,500) Other Post Employment Benefits (OPEB) (2,084,329) Net Pension Obligation - IMRF (250,205) Total Long-term Liabilities 3,191,040 541,551 (83, 013) 2,017,516 (46,375,252) Internal service funds are reported in the Statement of Net Position as Governmental Activities. 5,003,107 Net Position of Governmental Activities $ 230,172,135 See accompanying notes to financial statements. 22. CITY OF DES PLAINES, ILLINOIS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS Year Ended December 31, 2014 Major Governmental Funds General TIF #6 (Mannheim/ Higgins) Gaming Tax Nonmajor Total Capital Governmental Governmental Projects Funds Funds Revenues Property Taxes $ 22,900,148 $ 9,550 $ $ 32,151 $ 5,551,655 $ 28,493,504 Other Taxes 12,248,695 - 24,792,544 6,075,436 108,505 43,225,180 Licenses and Permits 3,331,833 - - 3,331,833 Intergovernmental 19,559,114 25,701 5,124,794 24,709,609 Public Charges for Services 5,065,526 2,221,419 7,286,945 Fines, Forfeitures and Penalties 1,306,106 - - 32,963 1,339,069 Investment Income 11,112 149 26,795 2,182 33,558 73,796 Miscellaneous 432,138 - - 85,215 3,757 521,110 Total Revenues 64,854,672 9,699 24,819,339 8,442,104 10,855,232 108,981,046 Expenditures Current General Government 7,531,642 15,917,018 283,036 23,731,696 Public Safety 38,649,791 - 189,337 38,839,128 Public Works 5,232,228 973,518 6,205,746 Streets and Highways 5,497,717 - - 1,475,748 6,973,465 Economic Development 642,461 48,418 1,547,972 2,238,851 Debt Service Principal 955,000 5,395,000 1,801,298 8,151,298 Interest and Fiscal Charges 234,697 441,522 648,920 1,325,139 Capital Outlay - 8,469,063 6,749,514 15,218,577 Total Expenditures 57,553,839 1,238,115 15,917,018 15,279,103 12,695,825 102,683,900 Excess (Deficiency) of Revenues over (under) Expenditures 7,300,833 (1,228,416) 8,902,321 (6,836,999) (1,840,593) 6,297,146 Other Financing Sources (Uses) Transfer In 342,257 6,895,000 3,833,250 11,070,507 Transfer Out (9,201,298) (49,527) (1,745,000) (74,152) (251,972) (11,321,949) Issuance of Debt 2,020,000 - 2,880,000 2,720,000 7,620,000 Payment to Refunding Bond Escrow (6,440,489) (2,924,139) (6,358,971) (15,723,599) Premium on Bond Issuance 1,707 81,567 77,035 160,309 Total Other Financing Sources (Uses) (8,859,041) (4,468,309) (1,745,000) 6,858,276 19,342 (8,194,732) Net Change in Fund Balances (1,558,208) (5,696,725) 7,157,321 21,277 (1,821,251) (1,897,586) Fund Balances at Beginning of Year 43,640,613 (2,384,245) 14,274,630 3,529,074 11,468,252 70,528,324 Fund Balances at End of Year $ 42,082,405 $ (8,080,970) $ 21,431,951 $ 3,550,351 $ 9,647,001 $ 68,630,738 See accompanying notes to financial statements. 23. NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds are governmental funds used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for particular purposes. • Motor Fuel Tax Fund — to account for the City's share of restricted state gasoline taxes. All projects require the advance approval of the Illinois Department of Transportation. • Community Development Block Grant Fund - to account for the disbursement of the restricted Federal Community Block Grant. Financing is provided by the Federal Government. • Asset Seizure Fund — to account for the restricted monies received from the federal, state, and county related to the seizure of assets by the Des Plaines Police Department. • Foreign Fire Insurance Tax Fund — to account for restricted monies received from the foreign fire insurance tax, and disbursements by the Foreign Fire Insurance Tax Board. • TIF Tax Allocation #1 Fund — to account for restricted revenues and expenditures related to the tax increment finance district located downtown. • TIF Tax Allocation #3 Fund — to account for restricted revenues and expenditures related to the tax increment finance district located near Wille Road. • TIF Tax Allocation #4 Fund — to account for restricted revenues and expenditures related to the tax increment finance district located near Five Corners. • TIF Tax Allocation #5 Fund — to account for restricted revenues and expenditures related to the tax increment finance district located near Lee and Perry Streets in downtown Des Plaines. • TIF Tax Allocation # 7 Fund — to account for restricted revenues and expenditures related to the tax increment finance district located near Higgins Road and Pratt Avenue. There was no activity or budget for this fund in 2014. • Grant Funded Projects Fund — to account for restricted revenues and expenditures related to the Public Safety, Capital and other miscellaneous grants. Debt Service Funds are governmental funds used to account for the accumulation of resources and the payment of general long-term debt principal, interest, and related costs. • Debt Service Fund — to accumulate monies for payment of principal and interest on long-term general obligation debt of governmental funds. Capital Project Funds are used to account for the acquisition and construction of major capital facilities other that those financed by proprietary funds and trust funds. • Equipment Replacement Fund — to account for the acquisition of major capital equipment (rolling stock). • IT Replacement Fund — to account for the replacement of the City's computer and copier equipment. CITY OF DES PLAINES, ILLINOIS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS December 31, 2014 Special Revenue Funds Community Motor Fuel Development Asset Foreign Fire TIF #1 Tax Block Grant Seizure Insurance Tax (Downtown) ASSETS Cash and Investments $ 809,164 $ 111,194 $ 1,538,776 $ 608,507 $ 4,211,780 Receivables (Net) Property Taxes 4,439,915 Accrued Interest 1,531 Other - - 5,138 Due from Other Governments 146,974 20,026 5,722 TOTAL ASSETS $ 956,138 $ 131,220 $ 1,551,167 $ 608,507 $ 8,651,695 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts Payable Accrued Liabilities Deposits Payable Advances from Other Funds Total Liabilities $ 401,143 $ 20,444 $ 14,582 $ $ 280,933 2,718 120,262 18,737 401,143 23,162 134,844 299,670 Deferred Inflows of Resources Deferred Property Tax Revenue 4,307,721 Unavailable Other Revenue 275 - Total Deferred Inflows of Resources 275 4,307,721 Fund Balances Restricted Economic Development - 107,783 4,044,304 Streets & Highways 554,995 - - Public Safety - 1,416,323 608,507 Debt Service - - Assigned Capital Acquisitions Unassigned Total Fund Balances 554,995 107,783 1,416,323 608,507 4,044,304 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 956,138 $ 131,220 $ 1,551,167 $ 608,507 $ 8,651,695 98. Special Revenue Funds Debt Service Fund Capital Projects Funds Total Nonmajor TIF #3 TIF #4 TIF #5 Grant Funded Debt Equipment I.T. Governmental (Wille Road) (Five Corners) (Perry/Lee) Projects Service Replacement Replacement Funds $ $ $ 95,354 $ 547,263 $ 457,127 $ 5,157,049 $ 558,165 $ 14,094,379 544,569 119,772 108,765 5,213,021 - - - 1,531 5,138 1,210,082 1,382,804 $ 544,569 $ $ 215,126 $ 1,757,345 $ 565,892 $ 5,157,049 $ 558,165 $ 20,696,873 $ 726 $ $ 124 $ 227,690 $ - $ 28,110 $ 93,878 $ 1,067,630 - - - - 2,718 - 138,999 3,158,547 3,158,547 3,159,273 124 227,690 28,110 93,878 4,367,894 544,569 119,772 - 108,415 5,080,477 544,569 (3,159,273) 1,601,226 - 1,601,501 119,772 1,601,226 108,415 6,681,978 95,230 (3,159,273) 95,230 4,247,317 554,995 2,024,830 457,477 457,477 5,128,939 464,287 5,593,226 (71,571) - - (3,230,844) (71,571) 457,477 5,128,939 464,287 9,647,001 $ 544,569 $ $ 215,126 $ 1,757,345 $ 565,892 $ 5,157,049 $ 558,165 $ 20,696,873 99. CITY OF DES PLAINES, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2014 Special Revenue Funds Community Motor Fuel Development Asset Foreign Fire TIF #1 Tax Block Grant Seizure Insurance Tax (Downtown) Revenues Taxes $ - $ - $ - $ 108,505 $ 4,779,373 Intergovernmental 1,955,759 153,317 42,901 Fines, Forfeitures and Penalties - 32,963 Investment Income 89 2,700 3,372 564 Miscellaneous - 2,757 1,000 Total Revenues 1,955,848 153,317 81,321 112,877 4,779,937 Expenditures Current: General Government - Public Safety - 107,172 82,165 Streets and Highways 1,475,748 - - Economic Development - 145,566 1,386,485 Debt Service Principal 1,289,798 Interest and Fiscal Charges - - - 216,704 Capital Outlay 367,115 1,667 84,770 909,643 Total Expenditures 1,842,863 147,233 191,942 82,165 3,802,630 Excess (Deficiency) of Revenues over (under) Expenditures 112,985 Other Financing Sources (Uses) Transfers In Transfers Out Issuance of Debt Payment to Refunding Bond Escrow Premium on Bond Issuance Total Other Financing Sources (Uses) 6,084 (110,621) 30,712 977,307 (205,210) (3,048,390) (3,253,600) Net Change in Fund Balances 112,985 6,084 (110,621) 30,712 (2,276,293) Fund Balances at Beginning of Year 442,010 101,699 1,526,944 577,795 6,320,597 Fund Balances at End of Year $ 554,995 $ 107,783 $ 1,416,323 $ 608,507 $ 4,044,304 100. Special Revenue Funds Debt Service Fund Capital Projects Funds Total Nonmajor TIF #3 TIF #4 TIF #5 Grant Funded Debt Equipment I.T. Governmental (Wille Road) (Five Corners) (Perry/Lee) Projects Service Replacement Replacement Funds $ 551,258 $ $ 120,982 $ - $ 100,042 $ $ $ 5,660,160 - 2,972,817 - 5,124,794 - - 32,963 34 1 17 26,769 12 33,558 3,757 551,292 120,983 2,972,834 100,042 26,769 12 10,855,232 512 15,364 45 324,000 95,000 386,439 - 17,937 643,951 - 710,951 659,315 (159,659) (659,315) 229,792 9,626 2,875,956 112,982 3,105,748 8,001 (132,914) 80,000 12,500 27,840 892,960 107,840 915,086 (7,798) (888,317) 215,196 - 49,152 2,532,800 (6,275) (40,487) 2,720,000 - (3,310,581) 77,035 43,618 283,036 189,337 1,475,748 1,547,972 973,452 1,801,298 648,920 6,749,514 1,017,070 12,695,825 (1,017,058) (1,840,593) 1,036,102 3,833,250 (251,972) 2,720,000 (6,358,971) 77,035 (519,821) 174,709 49,152 - 2,532,800 1,036,102 19,342 (679,480) (484,606) 8,001 (83,762) (7,798) 1,644,483 19,044 (1,821,251) (2,479,793) 484,606 87,229 12,191 465,275 3,484,456 445,243 11,468,252 $ (3,159,273) $ $ 95,230 $ (71,571) $ 457,477 $ 5,128,939 $ 464,287 $ 9,647,001 101. 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, 2014 With Comparative Actual Amounts for the Year Ended December 31, 2013 2014 Variance from Final Budget Original and Positive Final Budget Actual (Negative) 2013 Actual Revenues Property Taxes $ 4,733,399 $ 4,779,373 $ 45,974 $ 4,797,868 Investment Income 600 564 (36) 1,071 Miscellaneous - - - 2,144 Total Revenues 4,733,999 4,779,937 45,938 4,801,083 Expenditures Economic Development Salaries 6,000 2,530 3,470 6,469 Benefits 809 532 277 992 Contractual Services 1,201,202 700,472 500,730 535,673 Commodities 451,650 682,951 (231,301) 550,477 Capital Outlay 2,550,000 909,643 1,640,357 3,014,901 Total Economic Development 4,209,661 2,296,128 1,913,533 4,108,512 Debt Service Principal 1,459,797 1,289,798 169,999 1,930,865 Interest and Fiscal Charges 300,076 216,704 83,372 362,765 Total Debt Service 1,759,873 1,506,502 253,371 2,293,630 Total Expenditures 5,969,534 3,802,630 2,166,904 6,402,142 Excess (Deficiency) of Revenues over (under) Expenditures Other Financing Sources (Uses) Transfer Out Issuance of Debt Payment to Refunding Bond Escrow Premium on Bond Issuance Total Other Financing Sources (Uses) (1,235,535) (205,210) 977,307 2,212,842 (205,210) (3,048,390) (3,048,390) (205,210) (3,253,600) (1,601,059) (394,232) 2,990,000 90,118 (3,048,390) 2,685,886 Net Change in Fund Balance $ (1,440,745) (2,276,293) $ (835,548) 1,084,827 Fund Balance at Beginning of Year 6,320,597 5,235,770 Fund Balance at End of Year $ 4,044,304 $ 6,320,597 104. 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, 2014 With Comparative Actual Amounts for the Year Ended December 31, 2013 Revenues Taxes Investment Income Miscellaneous 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 2014 Original and Final Budget Actual $ 630,943 10 630,953 $ 551,258 34 Variance from Final Budget Positive (Negative) 2013 Actual $ (79,685) $ 24 551,292 (79,661) 10,039 512 9,527 10,039 512 9,527 314,000 324,000 (10,000) 397,013 386,439 10,574 711,013 710,439 574 721,052 710,951 10,101 (90,099) (6,275) (159,659) (69,560) (6,275) 2,720,000 (3,310,581) 77,035 2,720,000 (3,310,581) 77,035 (6,275) (519,821) (513,546) $ (96,374) (679,480) $ (583,106) (2,479,793) $ (3,159,273) 489,100 30 405 489,535 6,683 6,683 165,000 409,744 574,744 581,427 (91,892) (6,260) 565,000 14,532 573,272 481,380 (2,961,173) $ (2,479,793) 105. 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, 2014 With Comparative Actual Amounts for the Year Ended December 31, 2013 Revenues Taxes Investment Income Total Revenues 2014 Variance from Final Budget Original and Positive Final Budget Actual (Negative) 2013 Actual $ 24,797 $ $ (24,797) $ 1,901 1 24,797 (24,797) 1,902 Expenditures Economic Development Contractual Services 173,671 13,624 160,047 18,135 Commodities 5,000 1,740 3,260 Capital Outlay 200,000 643,951 (443,951) 45,482 Total Expenditures 378,671 659,315 (280,644) 63,617 Excess (Deficiency) of Revenues over (under) Expenditures (353,874) (659,315) (305,441) (61,715) Other Financing Sources (Uses) Transfers In 215,196 215,196 Transfers Out (40,487) (40,487) - (45,380) Total Other Financing Sources (Uses) (40,487) 174,709 215,196 (45,380) Net Change in Fund Balance $ (394,361) (484,606) $ (90,245) (107,095) Fund Balance at Beginning of Year 484,606 591,701 Fund Balance at End of Year $ $ 484,606 106. 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, 2014 With Comparative Actual Amounts for the Year Ended December 31, 2013 2014 Variance from Final Budget Original and Positive Final Budget Actual (Negative) 2013 Actual Revenues Taxes $ 115,438 $ 120,982 $ 5,544 $ 94,586 Investment Income - 1 1 36 Total Revenues 115,438 120,983 5,545 94,622 Expenditures Economic Development Contractual Services 10 45 (35) 1,418 Total Economic Development 10 45 (35) 1,418 Debt Service Principal 95,000 95,000 90,000 Interest and Fiscal Charges 17,913 17,937 (24) 19,736 Total Debt Service 112,913 112,937 (24) 109,736 Total Expenditures 112,923 112,982 (59) 111,154 Net Change in Fund Balance $ 2,515 8,001 $ 5,486 (16,532) Fund Balance at Beginning of Year Fund Balance at End of Year 87,229 103,761 95,230 $ 87,229 107.