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Des Plaines - TIF 6 Report FY 2018FY 2018 ANNUAL TAX INCREMENT FINANCE REPORT Name of Municipality: Des Plaines County: Cook Unit Code: 016/140/30 First Name; Michael Address: 1420 Miner Street Telephone: 847/391-5488 STATE OF ILLINOIS COMPTROLLER SUSANA A. MENDOZA Reporting Fiscal Year: Fiscal Year End: 2018 12/31/2018 TIF Administrator Contact Information Last Name; Bartholomew Title: City Manager City: Des Plaines ZiD. Snn�F E-mail- – — required mbartholomew@desplaines,org I attest to the best of my knowledge, that this FY 2018 report of the redevelopment project area(s) In the City/Village of: Des Plaines Is complete and accurate pursuant to Tax Increment Allocation Redevelopment Act [65 ILCS 5/11-74.4-3 et. seq.] and or Industrial Jobs Recovery Law [65 ILCS 5/11.-74.6-10 et. seq.]. Written slanature of TIF Administrator Date 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 TtF No. 3 Willie Road Mt. Prospect Road 8/7/2000 TIF No. 4 Five Corners Rand Road 10/2006 11/19/2014 TI F No. 5 Lee Street Perry Street 4/2/2001 TIF No. 6 Mannheim - Higgins Road FIF No. 7 Higgins Road and Pratt Avenue 10/15/2001 10/20/2014 *All statutory citations refer to one of two sections of the Illinois Municipal Code: The Tax Increment Allocation Redevelopment Act [65 ILCS 5/11-74.4-3 et segJ or the Industrial Jobs Recovery Law [65 ILCS 5/11-74.6-10 et. seq.] SECTION 2 [Sections 2 through 5 must be completed for each redevelopment project area listed in Section 1.] FY 2018 Name of Redevelopment Project Area (below): TIF 6 Mannheim Higgins Primary Use of Redevelopment Project Area": CBD , +`}!G U,, 41-111 v ,f,1GI LIQ I, 1 U -I IUII IQUUI I/,VIIAGU. Mixed, Industrial,Commercia If "Combination/Mixed" List Component Types: Retail 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 Please utilize the information below to properly label the Attachments. 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)] X If yes, please enclose the amendment labeled Attachment A). 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)] X Please enclose the CEO Certification (labeled Attachment B). Opinion of legal counsel that municipality is in compliance with the Act. [65 ILCS 5/11-74.4-5 (d) (4) and 5/11-74.6-22 (d) (4)] Please enclose the Legal Counsel Opinion (labeled Attachment C). X Statement setting forth all activities undertaken in furtherance of the objectives of the redevelopment plan, including any project implemented and a description of the redevelopment activities. [65 ILCS 5/11-74.4-5 (d) (7) (A and B) and 5/11-74.6-22 (d) (7) (A X and B)] If yes, please enclose the Activities Statement (labled Attachment D). 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) X (7) (C)] If yes, please enclose the Agreements labeled Attachment E). 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)] X If es, lease enclose the Additional Information (labeled Attachment F). 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) X (E)] If yes, please enclose the contracts or description of the contracts labeled Attachment G). 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)] X If yes, please enclose the Joint Review Board Report (labeled Attachment H). Were any obligations issued by the municipality? [65 ILCS 5/11-74.4-5 (d) (8) (A) and 5/11-74.6-22 (d) (8) (A)] X If yes, please enclose any Official Statement (labeled Attachment 1). If Attachment I is answered yes, then the Analysis must be attached and labeled Attachment -J). An 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)] X If attachment I is yes, then Analysis MUST be attached and (labeled Attachment J). Has a cumulative of $100,000 of TIF revenue been deposited into the special tax allocation fund? 65 ILCS 5/11-74.4-5 (d) (2) and 5/11-74.6-22 (d) (2) X If yes, please enclose Audited financial statements of the special tax allocation fund (labeled Attachment KI.- ):Cumulatively, Cumulatively,have deposits of incremental taxes revenue equal to or greater than $100,000 been made into the special tax allocation fund? [65 ILCS 5/11-74.4-5 (d) (9) and 5/11-74.6-22 (d) (9)] If yes, the audit report shall contain a letter from the independent certified public accountant indicating compliance or X noncompliance with the requirements of subsection (q) of Section 11-74.4-3 (labeled Attachment L). A list of all intergovernmental agreements in effect to which the municipality is a part, and an accounting of any money transferred or received by the municipality during that fiscal year pursuant to those intergovernmental agreements. [65 ILCS 5/11-74.4-5 (d) X (10)] If yes, please enclose the list only, not actual agreements (labeled Attachment M). SECTION 3.1 - (65 ILCS 5/11-74.4-5 (d)(5)(a)(b)(d)) and (65 ILCS 5/11-74.6-22 (d) (5)(a)(b)(d)) Provide an analysis of the special tax allocation fund. FY 2018 TIF NAME: Special Tax Allocation Fund Balance at Beginning of Reporting Period TIF 6 Mannheim Higgins C $ (11,516,126) All Amount Deposited in Special Tax Allocation Fund Cumulative Total Revenues/Cash Receipts Total Expenditures/Cash Disbursements (Carried forward from Section 3.2) Transfers to Municipal Sources Distribution of Surplus Total Expenditures/Disbursements Net/Income/Cash Receipts Over/(Under) Cash Disbursements $ 90,207 $ 1,296,348 $ 1,296,348 $ (1,206,141) $ 19,173,348 100% FUND BALANCE, END OF REPORTING PERIOD* 1 $ (12,722,267) * If there is a positive fund balance at the end of the reporting period, you must complete Section 3.3 Cumulative Revenue/Cash Totals of SOURCE of Revenue/Cash Receipts: Receipts for Revenue/Cash Current Receipts for life Reporting Year of TIF % of Total Property Tax Increment $ 93,179 $ 1,186,204 6% State Sales Tax Increment 0% Local Sales Tax Increment 0% State Utility Tax Increment 0% Local Utility Tax Increment 0% Interest $ 28 $ 545,137 3% Land/Building Sale Proceeds $ 26,029 0% Bond Proceeds $ 16,650,249 87% Transfers from Municipal Sources 0% Private Sources 0% Other (identify source if multiple other sources, attach 1 1 schedule) $ (3,000 $ 765,729 4% All Amount Deposited in Special Tax Allocation Fund Cumulative Total Revenues/Cash Receipts Total Expenditures/Cash Disbursements (Carried forward from Section 3.2) Transfers to Municipal Sources Distribution of Surplus Total Expenditures/Disbursements Net/Income/Cash Receipts Over/(Under) Cash Disbursements $ 90,207 $ 1,296,348 $ 1,296,348 $ (1,206,141) $ 19,173,348 100% FUND BALANCE, END OF REPORTING PERIOD* 1 $ (12,722,267) * If there is a positive fund balance at the end of the reporting period, you must complete Section 3.3 SECTION 3.2 A- (65 ILCS 5/11-74.4-5 (d) (5) (c) and 65 ILCS 5/11-74.6-22 (d) (5)(c)) FY 2018 TIF NAME: TIF 6 Mannheim Higgins ITEMIZED LIST OF ALL EXPENDITURES FROM THE SPECIAL TAX ALLOCATION FUND (by category of permissible redevelopment project costs ) PAGE 1 Category of Permissible Redevelopment Cost j65 ILCS 5/11-74.4-3 (q) and 65 ILCS 5/11-74.6-10 (o)] Amounts Reporting Fiscal Year 1. Cost of studies, surveys, development of plans, and specifications. Implementation and administration of the redevelopment plan, staff and professional service cost. TIF Administration 3,098 2. Annual administrative cost. 3 Cost of marketing sites. 3,098 $ -I $ -I 14. Property assembly cost and site preparation costs. I i I $ I5, Costs of renovation, rehabilitation, reconstruction, relocation, repair or remodeling of existing public or private buildinq, leasehold improvements, and fixtures within a redevelopment project ai I J $ 16. Costs of the constructuion of public works or improvements. ( ( ( SECTION 3.2 A PAGE 2 7 Costs of eliminating or removing contaminants and other impediments. 8. Cost ofjob training and retraining projects. 9. Financing costs, Debt Servcie 1,293,250 $ 1,293,250 10 Capital costs. 11 Cost of reimbursing school districts for their increased costs caused by TIF assisted housing projects. 12 Cost of reimbursing library districts for their increased costs caused by TIF assisted housing projects. SECTION 3.2 A PAGE 3 13, Relocation costs, 14 Payments in lieu of taxes. 15. Costs of job training, retraining, advanced vocational or career education $ 16 Interest cost incurred by redeveloper or other nongovernmental persons in connection with a $ 17. Cost of day care services. 18. Other TOTAL ITEMIZED EXPENDITURES S 1,296,348 Section 3.2 B FY 2018 11111M -11J1I:l TIF 6 Mannheim Higgins Optional: Information in the following sections is not required by law, but would be helpful in creating fiscal transparency. List all vendors, including other municipal funds, that were paid in excess of $10,000 during the current reporting year Name Service Amount SECTION 3.3 - (65 ILCS 5/11-74.4-5 (d) (5d) 65 ILCS 5/11-74.6-22 (d) (5d) Breakdown of the Balance in the Special Tax Allocation Fund At the End of the Reporting Period by source FY 2018 TIF NAME: TIF 6 Mannheim Higgins FUND BALANCE BY SOURCE $ (12,722,267) Amount of Original Issuance I Amount Designated 1. Descrintion of Debt Oblioations Bonds Series 2003 C $ 2,250,000 Bonds Series 2004 B $ 7,500,000 Bonds Series 2009 A $ 5,430,000 $ 3,560,000 Bonds Series 2011 A $ 250,000 $ 78,748 Bonds Series 2013 $ 4,390,000 $ 1,888,388 Bonds Series 2014 $ 2,020,000 $ 1,009,046 Total Amount Designated for Obligations 2. Description of Project Costs to be Paid Total Amount Designated for Project Costs TOTAL AMOUNT DESIGNATED $ 21,840,000 1 $ 6,536,182 D $ 6,536,182 SURPLUS/(DEFICIT) 1 $ (19,258,449) SECTION 4 [65 ILCS 5/11-74.4-5 (d) (6) and 65 ILCS 5/11-74.6-22 (d) (6)] FY 2018 TIF NAME: TIF 6 Mannheim Higgins Provide a description of all property purchased by the municipality during the reporting fiscal year within the redevelopment project area. X Check here if 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 - 20 ILCS 620/4.7 (7)(F) PAGE FY 2018 TIF Name: TIF 6 Mannheim Higgins Page 1 is to be included with TIF report. Pages 2 and 3 are to be included ONLY if projects are listed Select ONE of the following by indicating an 'X': I. NO projects were undertaken by the Municipality Within the Redevelopment Project Area. 2. The Municipality DID undertake projects within the Redevelopment Project Area. (If selecting this option, X ;omplete 2a.) 2a. The number of projects undertaken by the municipality within the Redevelopment Project Area: 1 LIST the projects undertaken by the Municipality Within the Redevelopment Project Area: TOTAL: Estimated Investment for Subsequent Fiscal Total Estimated to 11/1/99 to Date Year Complete Project Private Investment Undertaken (See Instructions) $ $ $ _ - Public Investment Undertaken $ $ $ -_ Ratio of Private/Public Investment 0 0 *PROJECT NAME TO BE LISTED AFTER PROJECT NUMBER I Prnipr.t 1' 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*: 'rivate 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 Patio 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 the complete TIF report SECTION 6 FY 2018 TIF NAME: TIF 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 Reporting Fiscal Year designated Base EAV EAV 20011 $ 2,136,607 $ 3,171,862. List all overlapping tax districts in the redevelopment project area. If overlapping taxing district received a surplus, list the surplus. X Check if the overlapping taxing districts did not receive a surplus. Surplus Distributed from redevelopment Overlapping Taxing District project area to overlapping districts SECTION 7 Provide information about iob creation and retention: Description and Type Number of Jobs Number of Jobs (Temporary or Retained Created 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 I Higgins Rd Redevelopment Projpet Area For Fiscal Year Ending December 31, 2018 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, 2018 and ending December 31, 2018. MAYO0 — DATE CITY OF DES PLAINES TIF DISTRICT #6 ANNUAL REPORT FOR FISCAL YEAR BEGINNING JANUARY 1, 2018 AND ENDING DECEMBER 31, 2018 RE: Attorney Review City of Des Plaines Mannheim Rd / Higgins Rd TIF District 96 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, 2018 and ending December 31, 2018, to the best ofmy knowledge and belief. Sincerely, ije' neral Counsel CITYOF DES PLAINES TIFDISTRICr #6 ANNUAL REPO RT FOR FISCAL YEAR BEGINNING JANUARY I, 2018 AND ENDING DECEMBER 31, 2018 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], 2018 AND ENDING DECEMBER 31, 2018 DES PLMNES N () I z CITY OF DES PLAINES TAX INCREMENT FINANCING DISTRICT ANNUAL JOINT REVIEW BOARD MEETING MINUTES AUGUST 8, 2018 1. Welcome by City Representative Michael McMahon welcomed everyone to today's meeting, introduced himself, and asked everyone to do the same. 2. Call to Order Michael McMahon opened the meeting at 10 a.m. at City Hall, 1420 Miner Street, Room 101, Des Plaines, IL 3. Roll Call (in attendance) Michael Bartholomew Mary Kalou Mark Bertolozzi Michael Vilendrer Cathy Johnson Bill Dussling Vickie Nissen Bret Bonnstetter George Giese Don Miletic Karen Stephens Ellen A. Yearwood Also Attended: City Manager, City of Des Plaines Assistant Superintendent, School District 207 Assistant Superintendent, School District 62 Dir. of Maintenance, Oper., & Trans., School District 62 Associate Superintendent, School District 214 Board Member, School District 214 Asst. Superintendent of Business Services, District 59 Controller/Associate Professor, Harper College Manager of Administration, Mt. Prospect Park District Executive Director, Des Plaines Park District Director of Parks & Recreation, Rosemont Park District Public Member Michael McMahon Director of Community & Econ. Dev., City of Des Plaines Karolina Kolodziej Assistant Finance Director, City of Des Plaines Patrick Ainsworth Economic Development Coordinator, City of Des Plaines Lauren Griffin Executive Secretary, City of Des Plaines Bob Rychlicki Kane McKenna & Associates, Inc./TIF Consultant Gale Cerabona Recording Secretary 4. Election/Confirmation of Chair A motion was made by Michael Bartholomew, seconded by Cathy Johnson, to elect and confirm Director, Michael McMahon, as Chair for the meeting. On a voice vote: AYES: All NAYS: None Motion: CARRIES 5. Election/Confirmation of Public Member A motion was made by Mary Kalou, seconded by Cathy Johnson, to elect and confirm Ellen Yearwood as Public Member for the meeting. On a voice vote: AYES: All NAYS: None Motion: CARRIES 6. Approval of Minutes: August 14, 2017 A motion was made by Ellen Yearwood, seconded by Mary Kalou, to approve the August 14, 2017 minutes as presented. On a voice vote: AYES: All NAYS: None Motion: CARRIES 7. Public Comment: There were no comments. 8. Review of Activities in District & 9. Review of 2017 State Comptroller's Report Michael McMahon reminded that typically TIF District No. 3 is at the forefront of the agenda. There were no objections. A motion was made by Ellen Yearwood, seconded by Cathy Johnson, to move TIF District No. 3 to the beginning of the agenda. On a voice vote: AYES: All NAYS: None Motion: CARRIES TIF District No. 3 Overview Michael McMahon turned the meeting over to Bob Rychlicki who advised item numbers 8 and 9 on the agenda are combined. He reminded that the format, sections, and pages are derived from the State of Illinois Comptroller's Office. He noted exhibits, activity, and receipts. Bob Rychlicki referred to Section 1, Page 2; Michael Bartholomew confirmed this is accurate. He referred to pages 5 and 6 stating the Manager and Mayor have confirmed same. Bob Rychlicki referred to Activities on Page 3 stating there are no amendments, no new redevelopment agreements, no new financing, nor new obligations; a status quo year. Bob Rychlicki referred to Page 18, Section 3.1 stating fiscal activity actualized a property tax increment of $1,322.484 with interest of $7 for a total amount deposited in special tax allocation of $1,371.391. Bob Rychlicki then referred to Page 25, Section 3.3 noting remainder of bonds. This TIF had a 12 -year extension; it will be retired in 2035with a final payment in 2036. The base EAV, on Page 30, is increasing. Bob Rychlicki thanked the Districts for their cooperation. It was asked if there is any possibility of development. Bob Rychlicki stated it is nearly a 50% valuation. He gave credit to City Staff. Michael Bartholomew stated 613s would no longer be granted. He noted Prologis requested an extension, which was denied. City Council is aligning with Staff's position. A motion was made by Cathy Johnson, seconded by Ellen Yearwood, to accept the TIF No. 3 report. On a voice vote: AYES: All NAYS: None Motion: CARRIES Cathy Johnson thanked the Chair for moving this item up on the agenda and departed the meeting at 10:10 a.m. TIF District No. 1 Overview Bob Rychlicki noted this is the City's downtown District, the oldest and largest TIF. He advised the City has an obligation by November, 2021, to notify all the Districts. This is payable in 2022. Bob Rychlicki noted this has the same certifications as TIF No. 3; no amendments, no new redevelopments, or new financing, etc. There was a transfer to the property — noted on Exhibit A. On Page 18, he highlighted a property tax increment of $4,981,630, interest of $18,389, with a special tax allocation of $5,000,019. Bob Rychlicki referenced debt service noted in Section 3.2. Lauren Griffin reproduced Section 3.3 for the group. On Page 31, Section 6, the base EAV was $20,262,187 with a fiscal -year EAV of 72,336.968; there is significant recovered value. Michael Bartholomew stated this is the most active District for redevelopment (OPUS, Compass, Des Plaines Theater, two new restaurants, etc.). The EAV will go higher in the near future. He noted the Economic Development staff has done an awesome job. It was asked if the land sold prior to the TIF. Michael Bartholomew advised it did. Patrick Ainsworth stated there is over $90,000 in increment; extra revenue. A motion was made by Don Miletic, seconded by Mary Kalou, to accept the TIF No. 1 report. On a voice vote: AYES: All NAYS: None Motion: CARRIES TIF District No. 5 Overview Bob Rychlicki stated this is an add-on, scheduled to terminate in 2024 with final payment in 2025. He noted the same series of certifications. There are no amendments, no new redevelopments or financings, etc. Bob Rychlicki noted the summary is on Page 18. Property tax increment of $143,878 with $7 in interest totals $143,885. On Page 21, he noted $112,233 is applied to debt service. There is $440,738 left in principal. Base EAV is 794,127. Fiscal year EAV is $2,245,534 -- three times the ratio; this is expected to increase. A motion was made by Mary Kalou, seconded by Don Miletic, to accept the TIF No. 5 report. On a voice vote: AYES: All NAYS: None Motion: CARRIES TIF District No. 6 Overview Bob Rychlicki advised this is the same schedule as TIF No. 5 — expected to terminate in 2024 with final payment in 2025. He noted there was an amendment (to TIF No. 7); certifications are similar. Bob Rychlicki advised there are no amendments, no new redevelopments, or acquisitions. He indicated a property tax increment of $79,473. Resources will be placed to TIF No. 7. Mary Kalou stated the EAV is low; dropped 16.2%. Bob Rychlicki will review (he noted there are three taxpayers there). A motion was made by Ellen Yearwood, seconded by Mary Kalou, to accept the TIF 6 report. On a voice vote: AYES: All NAYS: None Motion: CARRIES TIF District No. 7 Overview Bob Rychlicki advised this is the City's newest TIF. It terminates in 2037 with final payment in 2038. There is redevelopment and land transfer (Orchards at O'Hare); approved in a prior year; he referred to document attached. The same series of certifications was noted, no receipts. The base EAV is 0. Michael Bartholomew explained TIF No. 6 was cut in half with debt remaining. He provided background and noted development included a car wash, hotel, convenience store, etc. On the north side of the highway, a legitimate project appears probable. The plan is to pay off TIF No. 6's debt. Bob Rychlicki advised there is a surplus on a staggered scale. Cash receipts were due to the sale; there is construction activity. He noted this was an ambitious and well thought-out plan. A motion was made by Karen Stephens, seconded by Ellen Yearwood, to accept the TIF No. 7 report. On a voice vote: AYES: All NAYS: None Motion: CARRIES Bob Rychlicki thanked everyone for participating. 10. Questions from Board Members: There were no questions. 11. Adjournment A motion was made by Don Miletic, seconded by Ellen Yearwood, to adjourn the meeting at 10:29 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 GOVERNMENTALFUNDS December 31, 2018 LIABILITIES, DEFERRED INFLOWS OF Major Governmental Funds TIF #6 Nonmajor Total (Mannheim/ Grant Funded Capital Governmental Governmental General Higgins) Gaming Tax Projects Projects Funds Funds ASSETS $ 24,386,307 Accrued Payroll 1,827,462 - - - - Cash and Investments $ 35,083,480 $ - $ 33,939,158 $ 7,431,237 $ 8,783,065 $ 17,467,531 $ 102,704,471 Receivables (net) 154,921 Deposits Payable - - 23,895 5,993 Property Tax Receivable 24,256,973 96,558 - - 30,106 7,154,249 31,537,886 Other Taxes 1,294,548 - 282,305 - 172,444 - 1,466,992 Accounts Receivable 787,836 - 4,695,250 - 280,956 - 1,068,792 Accrued Interest 10,827 - - 28,452 39,279 Other 282,618 - - - 34,411 317,029 Due from Other Governments 5,667,611 - 2,649,909 7,587,343 1,270,984 149,231 17,325,078 Advances to Other Funds 18,279,838 - - - - 18,279,838 Due From Fiduciary Fund 10,168 - _ - 7,294,146 - 7,098,405 10,168 TOTAL ASSETS $ 85,673,899 $ 96,558 $ 36,589,067 $15,018,580 $ 10,537,555 $ 24,833,874 $ 172,749,533 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts Payable $ 2,430,562 $ 277 $ 16,026,352 $ 1,676,511 $ 2,470,228 $ 1,782,377 $ 24,386,307 Accrued Payroll 1,827,462 - - - - 1,827,462 Accrued Liabilities 154,921 - - - - 154,921 Deposits Payable - - 23,895 5,993 31,008 60,896 Advances from Other Funds - 12,721,990 - 14,260 4,706,521 17,442,771 Unearned Revenue 282,305 12,789,990 - 13,072,295 Total Liabilities 4,695,250 12,722,267 16,025,352 14,490,396 2,490,481 6,519,906 56,944,652 Deferred Inflows of Resources Deferred Property Tax Revenue 24,244,258 96,558 - - 29,251 7,098,405 31,468,472 Unavailable Other Revenue 441,032 - - 7,294,146 - 7,735,178 Total Deferred Inflows of Resources 24,685,290 96,558 - 7,294,146 29,251 7,098,405 39,203,650 Fund Balances Nonspendable Long-term Interfund Advances 18,279,838 - - - - - 18,279,838 Restricted Economic Development - 7,938,575 7,938,575 Debt Retirement/Infrastructure 20,562,715 - - 20,562,715 Streets & Highways - - 1,032,957 1,032,957 Public Safety - - 1,305,100 1,305,100 Debt Service - 156,614 156,614 Assigned Infrastructure 900,000 - - 8,017,823 - 8,917,823 Capital Acquisitions 10,470,310 - - 6,039,682 16,509,992 Unassigned 26,643,211[12,722,267) (6,765,962) - [5,257,365] 1,897,617 Total Fund Balances 56,293,359 (12,722,267) 20,562,7156,7� 65,9 8,017,823 11,215,563 76,601,231 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 5 85,673,899 5 96,558 $ 36,589,067 $15,018,580 $ 10,537,555 $ 24,833,874 $ 172,749.533 See accompanying notes to financial statements. 21. CITY OF DES PLAINES, ILLINOIS COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS Deccmbcr31, 2018 Special Revenue 114.. Community Motor Fuel Development Asset Foreign Fire TIF #1 Tax Block Grant Seizure Insurance Tax (Downtown) ASSETS Cash and Investments $ 1,134,806 $ - $ 842,888 $ 488,321 $ 8,032,543 Receivables (Net) Property Taxes - - - 5,225,159 Accounts Receivable - - Accrued Interest - - - Other - 5,305 Due from Other Governments 126,765 22,466 TOTAL ASSETS $ 1,251,571 $ 22,466 $ 848,193 5 488,321 $$ 1 57,702 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts Payable $ 228,614 $ 16,228 $ 15,935 $ 15,479 $ 314,077 Deposits Payable - - - - 31,008 Advances from Other Funds - 14,325 - - Total Liabilities 229,614 30,553 15,935 15,479 345;085 Deferred Inflows of Resources Deferred Property Tax Revenue - - - 5,174,777 Unavailable Other Revenue - Total Deferred Inflows of Resources - - 5,174,777 Fund Balances Restricted Economic Development - - 7,737,840 Streets & Highways 1,032,957 - - - Public Safety - - 832,258 472,842 Debt Service - " Assigned Capital Acquisitions - Unassigned - (8,087j - Total Fund Balances 1,032,957 18.087) 632,258 472,a42 7,737,840 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 1,281,071 $ 22,466 $ 848,198 $ 488,321 $ 13,257,702 114.. $ 277 $ 119 $ 591,373 $ $ - $ 578,028 $ 22,247 $ $ 1,782,377 _ - _ - - 31,008 3,369,690 1,322,506 - - - 4,706,521 3,369,967 11_9 1,913,879 - 578,028 22,247 - 6,519,906 1,700,909 155,025 67,694 - - 7,098,405 1,700,909 155,025 67,694 - 200,735 - 7,938,575 - 1,032,957 _ 1,305,100 156,614 - - - 156,614 - 3,999,972 273,797 1,765,913 6,039,632 (3.369,967) (1,879,311) - - - (5,257,365) (3,369,967 200,735 (1,879,311) 156,614 3,999,972 273,797 1,765,913 11,215,5013 $ 1,700,909 $ 355,879 S 102,262 $ 5 156,614 $ 4,578,000 5 296,04.1 $ 1,765,913 $_Z4,83 115. Debt Service Special Revenue Funds Fund Capital Projects Funds Total TIF 47 Emergency Nonmajor TIF #3 TIF #5 (Mannheim/ Telephone Debt Equipment I.T. Facilities Governmental (Wille Road) (PerryIee) Higgins) Stem Service Replacement_ Replacement Replacement Funds $ - $ 200,854 $ - $ $ 156,614 $ 4,549,548 $ 296,044 $ 1,765,913 $ 17,467,531 1,700,909 155,025 73,156 - 7,154,249 - - 29,106 - - - 29,106 28,452 - - 28,452 - - 5,305 - _ 149,231 $ 1,700,909 $ 355,879 $ 102,262 $ $ 156,614 S 4,578,000 $ 296,+044 $ 1,765,913 $ 24,833,874 $ 277 $ 119 $ 591,373 $ $ - $ 578,028 $ 22,247 $ $ 1,782,377 _ - _ - - 31,008 3,369,690 1,322,506 - - - 4,706,521 3,369,967 11_9 1,913,879 - 578,028 22,247 - 6,519,906 1,700,909 155,025 67,694 - - 7,098,405 1,700,909 155,025 67,694 - 200,735 - 7,938,575 - 1,032,957 _ 1,305,100 156,614 - - - 156,614 - 3,999,972 273,797 1,765,913 6,039,632 (3.369,967) (1,879,311) - - - (5,257,365) (3,369,967 200,735 (1,879,311) 156,614 3,999,972 273,797 1,765,913 11,215,5013 $ 1,700,909 $ 355,879 S 102,262 $ 5 156,614 $ 4,578,000 5 296,04.1 $ 1,765,913 $_Z4,83 115. CITY OF DES PLAINES, ILLINOIS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2018 Expenditures Current: General Government Public Safety 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) Transfers In Transfers Out Issuance of Debt Payment to Refunding Bond Escrow Premium on Bond Issuance Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances at Beginning of Year Fund Balances at End of Year - 99,344 109,788 1,041,163 - - - 249,758 1,441,439 1,167,152 91,649 321,646 147,693 127,015 64,281 1,291,635 1,362,809 397,451 226,359 174,069 3,991,875 153,108 29,747 (20,325) (59,159) 719,197 (112,000) 112,000 153,108 29,747 (20,325) (59,159) 607,197 879,849 L37,$34) 852,583 532,001 7,130,643 $ 1,032,957 $ (8,08.7) $ 832,258 $ 472,842 $ 7,737,840 116 Special Revenue Funds Community Motor Fuel Development Asset Foreign Fire TIF #1 Tax Block Grant Seizure Insurance Tax Dowr+toven Revenues Taxes $ - $ - $ - $ 113,367 $ 4,670,662 Intergovernmental 1,493,866 427.198 172,948 - - Fines, Forfeitures and Penalties - 21,198 - Investment Income 22,051 - 733 1,543 40,410 Miscellaneous _ - 11,155 - Total Revenues 1,515,917 427,198 206,034 114,910 4,711,072 Expenditures Current: General Government Public Safety 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) Transfers In Transfers Out Issuance of Debt Payment to Refunding Bond Escrow Premium on Bond Issuance Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances at Beginning of Year Fund Balances at End of Year - 99,344 109,788 1,041,163 - - - 249,758 1,441,439 1,167,152 91,649 321,646 147,693 127,015 64,281 1,291,635 1,362,809 397,451 226,359 174,069 3,991,875 153,108 29,747 (20,325) (59,159) 719,197 (112,000) 112,000 153,108 29,747 (20,325) (59,159) 607,197 879,849 L37,$34) 852,583 532,001 7,130,643 $ 1,032,957 $ (8,08.7) $ 832,258 $ 472,842 $ 7,737,840 116 Debt Service Special Revenue Funds Fund Capital Projects Funds 2,243 2,163 215,755 1,550,000 105,000 - 471,953 10,231 - - 1,254,126 2,024,196 117,394 1,469,881 (464,472) 39,213 (1,404,463) 61,613 12,500 1,732,554 260,351 1,745,054 321,964 61,613 209,132 1,041,163 1,911,358 2,834,652 - 573,833 - 5,199,301 11,831,052 92,812 (1,472,825] _320,304 1,265,913 (1,4-41;558 220,947 - 1,500,000 250,000 500,000 Total (6,000) (48,000) TIF #7 Emergency - - - Nonmajor TIF #3 TIF #5 (Mannheim/ Telephone Debt Equipment I.T. Facilities Governmental (Wille Road) (PerrylLee) _ Higgins) System Service Replacement Replacement Replacement Funds $ 1,559,498 $ 156,591 $ 65,391 $ $ 92,812 $ - $ - $ $ 6,658,321 101,521 - - _ 250,000 500,000 2,094,012 _ - _ - - 1,765,913 21,198 226 16 27 - 3,972,797 56,211 1,660 - 122,877 $ (3,359,967) $ 200,735 5 [1,879,311) $ - $ 156,614 $ 3,999,972 216,018 - 1,265,913 1,493,086 1,559,724 156,607 65;418 92,812 272,229 1,660 1,265,913 10,389,494 2,243 2,163 215,755 1,550,000 105,000 - 471,953 10,231 - - 1,254,126 2,024,196 117,394 1,469,881 (464,472) 39,213 (1,404,463) 61,613 12,500 1,732,554 260,351 1,745,054 321,964 61,613 209,132 1,041,163 1,911,358 2,834,652 - 573,833 - 5,199,301 11,831,052 92,812 (1,472,825] _320,304 1,265,913 (1,4-41;558 117. 220,947 - 1,500,000 250,000 500,000 2,470,947 (6,000) (48,000) - - - - (166,000) 12,410,000 - - 12,410,000 (12,599,628) - - - - (12,599,628) 297,149 297,149 101,521 - (48,000 220,947 - 1,500,000 250,000 500,000 2,412,468 (362,951) 39,213 (1,452,463) 220,947 92,812 27,175 (70,304) 1,765,913 970,910 (3,007,016) 161,522 (426,848) ____22( 0,947) 63,802 3,972,797 344,101 - 10,244,653 $ (3,359,967) $ 200,735 5 [1,879,311) $ - $ 156,614 $ 3,999,972 $ 273,797 S 1,755,913 $_11,215,563 117. 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, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 Revenues Property Taxes Investment Income Total Revenues Expenditures Economic Development Contractual Services Commodities Capital Outlay 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) Transfer Out Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance at Beginning of Year Fund Balance at End of Year 2018 Original and 1,392,976 Final Budget Actual $ 4,981,497 $ 4,670,662 _ 7.000 40,410 4,988,497 4,711,072 Variance from 1,392,976 Final Budget 1,154,092 Positive 2017 Ne ative� Actual $ (310,835) $ 4,981,630 33,410 18,389 (277,425) 5,000,019 1,911,290 1,392,976 518,314 1,154,092 82,650 48,463 34,187 57,576 5,305,000 1,291,635 4,013,365 1,323,356 7,298,940 2,733,074 4,565,866 2,535,024 1,163,553 1,167,152 (3,599) 1,138,553 95,284 91,649 3,635 118,547 1,258, 837 1,258,801 36 1,257,100 8,557,777 3,991,875 4,565,902 3,792,124 (3,569,280] 719,197 4,288,477 1,207,895 (112,000) (112,000) - (126,000) (112,000) (112,000 - (126,000 $ (3,681,280) 607,197 $ 4,288,477 1,081,895 7,130,643 6,048,748 $ 7,737,840 $ 7,130,643 120. 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, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 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) Refunding Bonds Issued Premium on Refunding Bonds Issued Payment to Refunded Bond Escrow Agent Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance at Beginning of Year Fund Balance at End of Year 2018 Original and Final Budget Actual Variance from Final Budget Positive 2017 (Negative) Actual $ 1,237,046 $ 1,559,498 $ 322,452 $ 1,322,484 10 226 216 7 - - - 48,900 1,237,056 1,559,724 322,668 1,371,391 10,480 2,243 8,237 1,888 10,480 2,243 8,237 1,888 1,835,000 1,550,000 285,000 1,095,000 250,177 471,953 (221,776) 268,363 2,085,177 2,021,953 63,224 1,363,363 2,095,657 2,024,196 71,461 1,365,251 (858,601) (464,472) 394,129 6,140 - 12,410,000 12,410,000 - 297,149 297,149 - - (12,599,628) (12,599,628) - (6,000) (6,000) - (6,000) (6,000) 101,521 107,521 6,000 $ 864,601 (362,951) $ 501,650 140 (3,007,016) (3,007,156 $ (3,369,967) $ (3,007,016 121, 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, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 122. 2018 Variance from Final Budget Original and Positive 2017 Final Budget Actual (Negative) Actual Revenues Taxes $ 143,878 $ 156,591 $ 12,713 $ 143,878 Investment Income 1 16 15 7 Total Revenues 143,879 156,607 12,728 143,885 Expenditures Economic Development Contractual Services 400 2,163 (1,763) 1,848 Capital Outlay 75,000 - 75,000 - Total Economic Development 75,400 _ 2,163 73,237 1,848 Debt Service Principal 105,000 105,000 - 100,000 Interest and Fiscal Charges 10,237 10,231 6 12,233 Total Debt Service 115,237 115,231 6 112,233 Total Expenditures 190,637 117,394 73,243 114,081 Net Change in Fund Balance $ (46,758) 39,213 $ 85,971 29,804 Fund Balance at Beginning of Year 161,522 131,718 Fund Balance at End of Year $ 200,735 $ 161,522 122. 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, 2018 With Comparative Actual Amounts for the Year Ended December 31, 2017 Revenues Taxes Investment Income Total Revenues Expenditures Economic Development Contractual Services Commodities Capital Outlay Total Expenditures Excess (Deficiency) of Revenues over (under) Expenditures Other Financing Sources (Uses) Proceeds from sale of capital assets Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balance Fund Balance at Beginning of Year Fund Balance at End of Year 2018 Variance from Final Budget Original and Positive 2017 Final Budget Actual (Negative) Actual $ 95,632 $ 65,391 $ (30,241) $ - 27 27 95,632 65,418 (30,214) 103,390 215,755 (112,365) 129,338 - - 9,680 - 1,254,126 (1,254,126) ` 602,945 103.390 1,469,881 (1,366,491} 741,963 (7,758) (1,404,463) (1,396.705) 741,963 48,000 (48,000) - (48,000) _ (48,000) - $ (55,758 (1,452,463) $ (1,396,705) (426,848) $ (1,879,311) 1,759,784 44,000 1,715,784 973,821 1,400, 669 $ 426,848 123. Crowe INDEPENDENT ACCOUNTANT'S REPORT To the Honorable Mayor and Members of the City Council City of Des Plaines, Illinois Crowe LLP Independent Member Crowe Global 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, 2018. Management of the City is responsible for the City's compliance with the specified requirements. Our responsibility is to express an opinion on the City's compliance with the specified requirements based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the City complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether the City complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on ourjudgment, including an assessment of the risks of material noncompliance, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination does not provide a legal determination on the City's compliance with specified requirements. In our opinion, the City complied with the aforementioned requirements for the year ended December 31, 2018, in all material respects. C4M..tx Lj—P Crowe LLP Oak Brook, Illinois June 17, 2019 215.