Joint Review Board

AGENDA JOINT REVIEW BOARD MEETING JULY 22, 2022 1:00 P.M. DeKalb Police Department 700 W. Lincoln Highway 2nd Floor Training Room DeKalb, Illinois A. CALL TO ORDER B. ROLL CALL City of DeKalb – Bill Nicklas* DeKalb Community Unit School District #428 – Cindy Carpenter* DeKalb County – Brian Gregory* (Chair) DeKalb County Forest Preserve – Terry Hannan DeKalb Park District – John Shea* DeKalb Public Library – Emily Faulkner DeKalb Township – Mary Hess* DeKalb Township Road and Bridge District – Craig Smith Kishwaukee College #523 – Laurie Borowicz* Kishwaukee Water Reclamation District – Mark Eddington Public Member – Larry Berke* C. APPROVAL OF THE AGENDA D. APPROVAL OF MINUTES 1. Minutes of the Joint Review Board Meeting of April 22, 2022. E. PUBLIC PARTICIPATION F. PRESENTATION OF THE SECOND QUARTER FY2022 TIF FINANCIALS G. UPDATE ON CURRENT TIF PROJECTS H. NEXT MEETING: OCTOBER 28, 2022 I. ADJOURNMENT *Voting Members of the Joint Review Board TO: City of DeKalb – Bill Nicklas* DeKalb Community Unit School District #428 - Cindy Carpenter* DeKalb County - Brian Gregory* (Chair) DeKalb County Forest Preserve - Terry Hannan DeKalb Park District - John Shea* DeKalb Public Library - Emily Faulkner DeKalb Township - Mary Hess* DeKalb Township Road and Bridge District - Craig Smith Kishwaukee College #523 – Laurie Borowicz* Kishwaukee Water Reclamation District - Mark Eddington Public Member - Larry Berke* FROM: Carrie Dittman Finance Director DATE: July 8, 2022 RE: Background Notes for the July 22, 2022, Agenda The following notes provide background to the items on the published JRB agenda. APPROVAL OF MINUTES. The minutes from the April 22, 2022, JRB meeting are attached for the Board’s review and approval. PRESENTATION OF SECOND QUARTER FY 2022 TIF FINANCIALS. The following reports are attached for the Board’s review:  TIF Project Tracker as of 6/30/2022  TIF #3 Income Statement Summary as of 6/30/2022  Revenue & Expenditure Report (from City’s accounting system) for TIF #3  Audit Report on Compliance with Public Act 85-1142 as of 12/31/2021 by Sikich LLP  Annual FY 2021 TIF Report filed with the IL Comptroller – TIF #1  Annual FY 2021 TIF Report filed with the IL Comptroller – TIF #3 FY2021 City & TIF Audit: In June 2022, the City completed the annual audit of the City’s funds for the fiscal year ended December 31, 2021. This was conducted by the independent accounting firm of Sikich LLP. Two main reports, the Annual Comprehensive Financial Report & TIF Compliance Report (enclosed within agenda packet), were the product of a six-month process that included tests of controls and substantive testing of the transactions of the City. Sikich reviewed resolutions, developer incentives, invoices, confirmed balances and tested other * Indicates voting membership Joint Review Board Meeting July 22, 2022 Page 2 of 3 information in order to issue their opinion on TIF #1 and TIF #3. Staff is happy to report no errors or issues were noted by Sikich, and the City earned an unmodified opinion from the audit which is the highest level of opinion the City can achieve. Additionally, staff completed and filed the required annual TIF reports for TIF #1 and TIF #3 with the Illinois Comptroller by the required deadline. A copy of each is also included in the packet. As TIF #1 expired 12/31/2021, this is expected to be the final filing for that district. UPDATE ON CURRENT TIF #3 PROJECTS Architectural Improvement Program (AIP) Summary: Property owners whose properties fall within the TIF #3 district boundaries may apply for limited incentives up to a maximum of $25,000 based on a three-tiered list of reimbursable expenses. The tiers are shown in the following table: Major Capital Improvements – 50% Reimbursement ADA Compliance Façade Renovations Life Safety Equipment Electrical, Mechanical, and Architectural Design Fees Restoration of Historic Plumbing Upgrades Architectural Features Fire Alarm and Suppression Tuckpointing Systems Minor Capital Improvements – 25% Reimbursement Exterior Lighting Exterior Painting Window & Door Replacement Screening of Unsightly Utilities Deferred Maintenance – 10% Reimbursement Roof Repair or Replacement Gutter Replacement Stair and Handrail Replacement Floor Surface Repair Water Damage Repair According to the terms of the AIP program, the City “forgives” 20% of the value of the matching funds each year for five years. In FY2022, the AIP budget allocated $70,000 for 5 qualified projects on a first-come, first-served basis. The City Council amended the budget in May 2022 to add $47,000 for qualifying AIP projects, offset by the higher property taxes expected due to final EAV numbers. No additional AIP grants were approved by the City Council nor paid out between April – June 2022, although two will be proposed to the City Council in July (La Calle, 263 E. Lincoln Highway = $12,265 and Fargo Skateboarding, 641 E. Lincoln Highway = $8,616). Joint Review Board Meeting July 22, 2022 Page 3 of 3 Major Project Summary  Agora Tower. The Project’s developer, John Pappas, and general contractor, Weaver Construction, have completed plumbing, electrical and mechanical work, as well as substantial insulation and drywall installation. The project funding was approved in September 2019 and the project is expected to be completed in Fall 2022. No additional reimbursement requests have been received in the last quarter.  IL Rt. 38 Reconfiguration. This project has been approved by IDOT and a bid opening occurred April 20. The only bidder was Elliott & Wood, and a construction services contract for $1,763,000 was awarded at the April 25th City Council meeting. The reconfiguration, which is well underway, will reduce the four-lane downtown section of IL Rt. 38 between First and Fourth Streets to three lanes (with a center turn lane). This will widen the downtown sidewalks by about 5-6 feet on both the north and south sides, allowing for a more pedestrian-friendly streetscape and mitigating the truck “raceway” through the heart of DeKalb’s downtown. The wider sidewalks will afford more room for sidewalk sales, outdoor seating, and more leisurely enjoyment of the downtown businesses. The City has also addressed the IDOT requirement for a parallel bike path by committing to such a pathway on Grove Street, and has addressed various IDOT technical suggestions for turn radii, etc. The City also made some design changes to address IDOT’s concern about impacts on the Union Pacific’s Fourth Street rail crossing. Due to the single bidder, the FY 2022 budget needed to be amended by $550,000 to a total of $1,800,000 for this carryover project. Engineering work and the first construction payout were made in the second quarter 2022. The project is slated to be completed in time for Corn Fest.  223 S. Fourth Street: City Hall Suites. This redevelopment project will be an “earner.” The one- block area has been off the tax rolls since the late 1960s so once the property is occupied all of the assessed valuation will count toward the calculation of the increment. The former city hall has been razed, the excavator has crushed and removed the masonry debris for recycling (except what has been used on the site), and the main building “pad” has been prepped. The general contractor, Pappas Development, has also replaced old water and sewer mains as well as electrical and natural gas services. To date, $502,846 of the $750,000 TIF #3 grant has been allocated. No additional reimbursement requests have been received in the last quarter. ADJOURNMENT  MINUTES CITY OF DEKALB JOINT REVIEW BOARD MEETING APRIL 22, 2022 The Joint Review Board (JRB) of the City of DeKalb, Illinois, convened on April 22, 2022, at 1:00 p.m. at the DeKalb Police Department, located at 700 W. Lincoln Highway, DeKalb, Illinois. A. CALL TO ORDER Chair Brian Gregory called the meeting to order at 1:02 p.m. B. ROLL CALL Executive Assistant Ruth Scott called the roll, and the following members of the JRB were present:  City of DeKalb – Bill Nicklas*  DeKalb Community Unit School District #428 – Cindy Carpenter*  DeKalb County – Brian Gregory*  DeKalb Park District – John Shea*  DeKalb Township – Mary Hess*  Kishwaukee College – Laurie Borowicz* The following members of the JRB were absent:  Kishwaukee Water Reclamation District – Mark Eddington  DeKalb Public Library – Emily Faulkner  DeKalb Township Road and Bridge District – Craig Smith  DeKalb County Forest Preserve – Terry Hannan  Public Member – Larry Berke* Others present included Finance Director Carrie Dittman. C. APPROVAL OF THE AGENDA MOTION: Ms. Carpenter moved to approve the agenda; seconded by Ms. Hess. VOTE: Motion passed by a voice vote of the majority of members present. D. APPROVAL OF THE MINUTES 1. Minutes of the Joint Review Board Meeting of January 28, 2022. MOTION: Ms. Carpenter moved to approve the minutes; seconded by Ms. Hess. VOTE: Motion passed by a voice vote of the majority of members present. E. PUBLIC PARTICIPATION There was none. F. PRESENTATION OF THE FIRST QUARTER FY2022 TIF FINANCIALS Joint Review Board Meeting Minutes April 22, 2022 Page 2 of 2 Ms. Dittman provided an overview of this item based on the information provided in the agenda packet, which included the TIF Project Tracker as of March 31, 2022, he TIF #3 Income Statement Summaries, and Revenue and Expenditure Reports. It was noted that the Fire Station #1 and DeKalb Taylor Municipal Airport projects were completed under budget. Mr. Nicklas reported that the City is currently going through its audit for FY2021. Bill stated going through audit now for FY2021. Final TIF reports will be presented at the next JRB meeting. There was no further discussion. G. UPDATE ON CURRENT TIF PROJECTS Mr. Nicklas Bill provided an overview of this item based on the information provided in the agenda packet. Architectural Improvement Project (AIP) grants awarded included one to KJ’s Bar and Grill at 518 E. Lincoln Highway in the amount of $2,415, and another to Stagecoach Players at 126 S. Fifth Street in the amount of $9,500. Continuing, Mr. Nicklas provided an overview of major TIF projects: Agora Tower – Expects occupancy by the end of August 2022. Illinois Route 38 (Lincoln Highway) Reconfiguration – The City received only one bid for this project and it came in over what was estimated. One of the reasons could be due to the price of materials continuing to increase. Brief discussion ensued regarding the start of the project. Mr. Nicklas indicated it will have to be done before Corn Fest, which is scheduled for the end of August. 223 S. Fourth Street - City Hall Suites – The site has been razed and the main building pad has been prepped. The contractor has also replaced the old water and sewer mains as well as electrical and natural gas services. Brief discussion ensued. H. NEXT MEETING The next meeting of the JRB will be scheduled for July 22, 2022. I. ADJOURNMENT MOTION: Ms. Borowicz moved to adjourn the meeting; seconded by Ms. Carpenter. VOTE: Motion passed by a voice vote of the majority of members present and the meeting was adjourned at 1:17 p.m. Respectfully submitted, _____________________________ Ruth A. Scott, Executive Assistant Click here to view the agenda packet for the April 22, 2022, JRB meeting.  TIF 1 & TIF 3 ‐ Central Business District Estimated Cumulative Pay Out Schedule ("Project Tracking") Period Ending 6/30/22 Applicable Income Statement Year of Total RDA/TIF Approved Paid to Date Remaining Redevelopment Project Party (Developer) PINS Expense Category RDA Commitment Eligible to 6/30/22 Obligation Administrative (Non‐Project) Not allowable under IGA Debt Service TIF 1 City of DeKalb Debt Service 2021 $ 2,385,800 N/A $ 2,385,800 $ ‐ Agora Tower TIF 3 Private ‐ For Profit 2019 $ 3,000,000 Y $ 1,962,583 $ 1,037,417 206 E. Lincoln Ave. apartments TIF 3 Private ‐ For Profit 2020 $ 216,800 Y $ 216,800 $ ‐ 200 S. Fourth Street TIF 3 Private ‐ For Profit 2020 $ 750,000 Y $ 502,846 $ 247,154 AIP ‐ 121 N. Second Street ‐ Hillside TIF 3 Private ‐ For Profit 2020 $ 18,076 Y $ 5,503 $ ‐ AIP ‐ 135 N. Second St ‐ Egyptian Theater TIF 3 Private ‐ For Profit 2021 $ 4,314 Y $ 4,314 $ ‐ AIP ‐ 115 N 1st St ‐ R.A.M.P TIF 3 Private ‐ For Profit 2021 $ 1,675 Y $ 1,675 $ ‐ AIP ‐ 218 W. Lincoln Hwy ‐Hickeys Private ‐ For Profit 2021 $ 1,185 Y $ ‐ $ 1,185 AIP ‐ 151 N 4th St Private ‐ For Profit 2021 $ 25,000 Y $ ‐ $ 25,000 AIP ‐ 509 Oak St ‐ Acculab TIF 3 Private ‐ For Profit 2021 $ 25,000 Y $ 25,000 $ ‐ AIP ‐ 201‐203 E. Locust St TIF 3 Private ‐ For Profit 2021 $ 1,850 Y $ 1,850 $ ‐ AIP ‐ 518 E. Lincoln Hwy ‐ KJ's Tap TIF 3 Private ‐ For Profit 2022 $ 2,415 Y $ 2,415 $ ‐ AIP ‐ 126 S. 5th St‐ Stagecoach Players TIF 3 Private ‐ For Profit 2022 $ 9,500 Y $ 9,500 $ ‐ IL Route 38 Downtown TIF 3 City of DeKalb Infrastructure 20XX $ 1,800,000 Y $ 386,550 $ 1,413,450 Electric Car Charging Station ‐ Palmer Ct. TIF 3 City of DeKalb Infrastructure 2021 $ 15,000 Y $ 14,994 $ ‐ Fire Station #1 TIF 1 City of DeKalb Infrastructure 2021 $ 181,554 Y $ 180,284 $ ‐ DeKalb‐Taylor Municipal Airport* TIF 1 City of DeKalb Infrastructure 2021 $ 200,000 Y $ 159,395 $ ‐ Total Project Expenses $ 8,638,169 $ 5,859,509 $ 2,724,206 *Total RDA Commitment estimated based on the Municipal Share of Grant Activity to Rehabilitate Airport Facilities blue font = preapproved as part of TIF IGA 12/14/2020  TIF 3 ‐ Central Business District TIF Income Statement Summary TIF # 3 (esta. 2/11/2019) Tax Year for Base EAV for TIF Increment 2019 2020 2021 2022 TIF Year 0 1 2 3 Tax Year 2019 2020 2021 2022 Year Tax Due 2020 2021 2022 2023 Year Surplus Distributed (by 3/31) 2021 2022 2023 2024 Beginning Balance ‐ January 1 ‐ (500,000) 1,271,337 3,489,158 YTD Revenue Actual Actual Actual 6/30/2022 Revenue ‐ Property Tax Increment ‐ 300,640 458,809 242,900 Revenue ‐ Transfer from Other TIFs ‐ 4,275,000 2,650,000 ‐ Revenue ‐ Interest Income ‐ 202 1,097 4,521 Revenue ‐ Bond Proceeds ‐ ‐ ‐ ‐ Revenue ‐ Refunds/Reimbursements ‐ ‐ ‐ 8,712 Total Revenue ‐ 4,575,842 3,109,906 256,133 Total Available (Rev. + Beg. Balance) ‐ 4,075,842 4,381,243 3,745,291 Expenses Incurred (Paid) Expenses ‐ Non‐Project (Admin) ‐ ‐ ‐ ‐ Expenses ‐ Other Capital‐Public Infrastructure ‐ ‐ 127,053 274,491 Expenses ‐ Not‐for‐Profit ‐ ‐ ‐ ‐ Expemses ‐ Private For‐Profit 500,000 2,803,802 624,588 36,915 Expenses ‐ Debt Service ‐ ‐ ‐ ‐ Expenses ‐ Other ‐ ‐ ‐ ‐ Expenses ‐ Engineering Services ‐ ‐ ‐ ‐ Expenses ‐ Financial Services 703 556 Expenses ‐ Legal & Notices ‐ ‐ 2,245 259 Expenses ‐ Surplus Other ‐ ‐ ‐ ‐ Total Expenses (excl IGA Surplus Pmt) 500,000 2,804,505 754,442 311,665 Expenses ‐ Surplus IGA (Note 1) ‐ ‐ 137,643 72,870 Ending Balance/(Deficit) ‐ December 31 (500,000) 1,271,337 3,489,158 3,360,756 IGA % of Surplus 0% 0% 30% 30% Note 1 ‐ surplus to be paid in following year according to IGA 07/06/2022 02:27 PM REVENUE AND EXPENDITURE REPORT FOR CITY OF DEKALB Page: 1/2 User: CARRIE.DITTMA Balances as of 06/30/2022 DB: Dekalb Fund 262 - TIF FUND #3 2022 YEAR-TO-DATE Available % Account Description Amended Budget THRU 06/30/22 Balance Used Revenues Department 00-00: GENERAL 30300 PROPERTY TAX - TIF 05/26/2022 CR PROPERTY TAX REVENUE 05/26/2022 108359 33,678.65 PROPERTY TAX REVENUE 05/26/2022 06/23/2022 CR PROPERTY TAX REVENUE 06/23/2022 109657 209,221.72 PROPERTY TAX REVENUE 06/23/2022 30300 PROPERTY TAX - TIF 507,000.00 242,900.37 264,099.63 47.91 37100 INVESTMENT INTEREST 01/31/2022 GJ TIF INTEREST ALLOCATION - JAN 22 102340 18.22 JE# 3457 01/31/2022 GJ RECLASS TIF #1 INTEREST 103612 173.71 JE# 3513 02/28/2022 GJ TIF INTEREST ALLOCATION - FEB 2022 103578 15.19 JE# 3509 02/28/2022 GJ RECLASS TIF #1 INTEREST 103613 207.89 JE# 3514 03/31/2022 GJ MARCH 2022 INTEREST 106472 83.40 JE# 3653 03/31/2022 GJ MARCH 2022 INTEREST 106472 383.18 JE# 3653 04/30/2022 GJ APRIL 2022 INTEREST 107427 79.95 JE# 3690 04/30/2022 GJ APRIL 2022 INTEREST 107427 643.83 JE# 3690 05/31/2022 GJ MAY 2022 INTEREST 108681 106.96 JE# 3750 05/31/2022 GJ MAY 2022 INTEREST 108681 1,112.10 JE# 3750 06/30/2022 GJ JUNE 2022 INTEREST 110177 186.73 JE# 3801 06/30/2022 GJ JUNE 2022 INTEREST 110177 1,510.26 JE# 3801 37100 INVESTMENT INTEREST 250.00 4,521.42 (4,271.42) 1,808. 38200 REFUNDS / REIMBURSEMENTS 02/28/2022 GJ CORRECT MR -S/B REVENUE NOT EXPENSE 104447 8,712.59 JE# 3554 38200 REFUNDS / REIMBURSEMENTS 0.00 8,712.59 (8,712.59) 100.00 Total - Dept 00-00 507,250.00 256,134.38 251,115.62 50.49 Total Revenues 507,250.00 256,134.38 251,115.62 50.49 Expenditures Department 00-00: GENERAL 62100 FINANCIAL SERVICES 750.00 0.00 750.00 0.00 63800 CONTRACTED SERVICES 6,111.00 0.00 6,111.00 0.00 65300 LEGAL EXPENSES & NOTICES 02/16/2022 AP ALLEN GALLUZZO HEVRIN LEAKE LLC 102440 259.00 Inv #: '7859' Vendor '172368' 65300 LEGAL EXPENSES & NOTICES 0.00 259.00 (259.00) 100.00 68600 TIF SURPLUS DISTRIBUTION 138,000.00 0.00 138,000.00 0.00 69199 PRIV PROP REHAB / REDEVELOP 01/14/2022 AP KJ'S TAP 100924 2,415.00 Inv #: 'RES 2022-009' Vendor '000608' 02/08/2022 AP ACCULAB OF ILLINOIS, INC. 101840 25,000.00 Inv #: 'RES 2021-090' Vendor '172412' 03/07/2022 AP STAGE COACH PLAYERS 103920 9,500.00 Inv #: '2022 AIP SCP' Vendor '172439' 69199 PRIV PROP REHAB / REDEVELOP 1,401,571.00 36,915.00 1,364,656.00 2.63 83900 OTHER CAPITAL IMPROVEMENTS 01/10/2022 MRB SUMMARY MRB 01/10/2022 100337 (9,475.00) 07/06/2022 02:27 PM REVENUE AND EXPENDITURE REPORT FOR CITY OF DEKALB Page: 2/2 User: CARRIE.DITTMA Balances as of 06/30/2022 DB: Dekalb Fund 262 - TIF FUND #3 2022 YEAR-TO-DATE Available % Account Description Amended Budget THRU 06/30/22 Balance Used Expenditures Department 00-00: GENERAL 02/03/2022 MRB SUMMARY MRB 02/03/2022 101567 (8,712.59) 02/03/2022 MRB SUMMARY MRB 02/03/2022 101538 9,475.00 02/28/2022 GJ CORRECT MR -S/B REVENUE NOT EXPENSE 104447 8,712.59 JE# 3554 03/02/2022 AP ENGINEERING ENTERPRISES INC 103774 9,833.75 Inv #: '73501' Vendor '000349' 04/01/2022 AP ENGINEERING ENTERPRISES INC 105515 3,000.00 Inv #: '73714' Vendor '000349' 05/03/2022 AP ENGINEERING ENTERPRISES INC 107975 2,151.09 Inv #: '73977' Vendor '000349' 05/26/2022 AP ENGINEERING ENTERPRISES INC 109071 1,845.66 Inv #: '74207' Vendor '000349' 06/16/2022 AP ELLIOTT AND WOOD INC 109794 257,660.90 Inv #: 'EPE1' Vendor '000344' 83900 OTHER CAPITAL IMPROVEMENTS 1,800,000.00 274,491.40 1,525,508.60 15.25 Total - Dept 00-00 3,346,432.00 311,665.40 3,034,766.60 9.31 Total Expenditures 3,346,432.00 311,665.40 3,034,766.60 9.31 NET OF REVENUES AND EXPENDITURES (2,839,182.00) (55,531.02) (2,783,650.98) CITY OF DEKALB, ILLINOIS REPORT ON COMPLIANCE WITH PUBLIC ACT 85-1142 For the Year Ended December 31, 2021 CITY OF DEKALB, ILLINOIS TABLE OF CONTENTS Page(s) INDEPENDENT ACCOUNTANT’S REPORT .............................................................. 1 INDEPENDENT AUDITOR’S REPORT ON SUPPLEMENTARY INFORMATION ......................................................................... 2 SUPPLEMENTARY INFORMATION Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Tax Increment Financing Tax Increment Financing Districts Redevelopment Funds ..................................... 3 Schedule of Fund Balance by Source Tax Increment Financing #1 Fund .......................................................................... 4 Tax Increment Financing #3 Fund .......................................................................... 5 TIF Debt Service Fund ............................................................................................ 6 1415 West Diehl Road, Suite 400 Naperville, IL 60563 630.566.8400 INDEPENDENT ACCOUNTANT’S REPORT The Honorable Mayor Members of the City Council City of DeKalb, Illinois We have examined management’s assertion, included in its representation letter dated June 13, 2022, that the City of DeKalb, Illinois (the City) complied with the provisions of subsection (q) of Section 11-74.4-3 of the Illinois Tax Increment Redevelopment Allocation Act (Illinois Public Act 85-1142) during the year ended December 31, 2021. Management is responsible for the City’s assertion and for compliance with those requirements. Our responsibility is to express an opinion on management’s assertion about the City compliance 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 management’s assertion is fairly stated, in all material respects. An examination involves performing procedures to obtain evidence about management’s assertion. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the risks of material misstatement of management’s assertion, 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. We are required to be independent and meet our other ethical responsibilities in accordance with relevant ethical requirements relating to the engagement. Our examination does not provide a legal determination on the City of DeKalb’s compliance with the specified requirements. In our opinion, management’s assertion that the City of DeKalb complied with the aforementioned requirements for the year ended December 31, 2021 is fairly stated, in all material respects. This report is intended solely for the information and use of the Mayor, the Members of the City Council, management of the City, Illinois State Comptroller’s Office and the joint review boards and is not intended to be and should not be used by anyone other than these specified parties. Naperville, Illinois June 13, 2022 -1- 1415 West Diehl Road, Suite 400 Naperville, IL 60563 630.566.8400 INDEPENDENT AUDITOR’S REPORT ON SUPPLEMENTARY INFORMATION The Honorable Mayor Members of the City Council City of DeKalb, Illinois We have audited the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund and the aggregate remaining fund information of the City of DeKalb, Illinois (the City) as of and for the year ended December 31, 2021, which collectively comprise the basic financial statements of the City and have issued our report thereon dated June 13, 2022, which expressed an unmodified opinion on those statements. Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The supplementary information (schedule of revenues, expenditures, and changes in fund balances and schedules of fund balance by source for the Tax Increment Financing #1 Fund, Tax Increment Financing # 3 Fund, and Tax Increment Financing Debt Service Fund) are presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. Naperville, Illinois June 13, 2022 -2- SUPPLEMENTARY INFORMATION  CITY OF DEKALB, ILLINOIS COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TAX INCREMENT FINANCING DISTRICTS REDEVELOPMENT FUNDS For the Year Ended December 31, 2021 Debt Service Special Revenue Funds Fund Tax Tax TIF Total Increment Increment Debt (Memorandum Financing #1 Financing #3 Service Only) REVENUES Taxes $ 6,727,258 $ 458,809 $ - $ 7,186,067 Investment Income 14,329 1,097 - 15,426 Total Revenues 6,741,587 459,906 - 7,201,493 EXPENDITURES Community Development Contractual Services 3,391,616 2,801 - 3,394,417 Capital Outlay 181,700 751,641 - 933,341 Debt Service Principal Retirement - - 1,145,000 1,145,000 Interest and Fiscal Charges - - 45,800 45,800 Total Expenditures 3,573,316 754,442 1,190,800 5,518,558 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 3,168,271 (294,536) (1,190,800) 1,682,935 OTHER FINANCING SOURCES (USES) Transfers In - 2,650,000 1,190,800 3,840,800 Transfers (Out) (3,930,077) - - (3,930,077) Total Other Financing Sources (Uses) (3,930,077) 2,650,000 1,190,800 (89,277) NET CHANGE IN FUND BALANCES (761,806) 2,355,464 - 1,593,658 FUND BALANCES, JANUARY 1 781,277 1,271,337 - 2,052,614 FUND BALANCES, DECEMBER 31 $ 19,471 $ 3,626,801 $ - $ 3,646,272 (See independent auditor's report.) -3-  CITY OF DEKALB, ILLINOIS SCHEDULE OF FUND BALANCE BY SOURCE TAX INCREMENT FINANCING #1 FUND For the Year Ended December 31, 2021 BEGINNING BALANCE, JANUARY 1, 2021 $ 781,277 DEPOSITS Property Taxes 6,727,258 Investment Income 14,329 Total Deposits 6,741,587 Balance Plus Deposits 7,522,864 EXPENDITURES AND TRANSFERS Community Development 3,391,616 Capital Outlay 181,700 Transfers Out 3,930,077 Total Expenditures and Transfers 7,503,393 ENDING BALANCE, DECEMBER 31, 2021 $ 19,471 ENDING BALANCE BY SOURCE Property Tax $ 19,471 Subtotal 19,471 Less Surplus Funds - ENDING BALANCE $ 19,471 (See independent auditor's report.) -4-  CITY OF DEKALB, ILLINOIS SCHEDULE OF FUND BALANCE BY SOURCE TAX INCREMENT FINANCING #3 FUND For the Year Ended December 31, 2021 BEGINNING BALANCE, JANUARY 1, 2021 $ 1,271,337 DEPOSITS Property Taxes 458,809 Investment Income 1,097 Transfers In 2,650,000 Total Deposits 3,109,906 Balance Plus Deposits 4,381,243 EXPENDITURES Community Development 2,801 Capital Outlay 751,641 Total Expenditures 754,442 ENDING BALANCE, DECEMBER 31, 2021 $ 3,626,801 ENDING BALANCE BY SOURCE Property Tax $ 3,626,801 Subtotal 3,626,801 Less Surplus Funds - ENDING BALANCE $ 3,626,801 (See independent auditor's report.) -5-  CITY OF DEKALB, ILLINOIS SCHEDULE OF FUND BALANCE BY SOURCE TIF DEBT SERVICE FUND For the Year Ended December 31, 2021 BEGINNING BALANCE, JANUARY 1, 2021 $ - DEPOSITS Transfers In 1,190,800 Total Deposits 1,190,800 Balance Plus Deposits 1,190,800 EXPENDITURES Debt Service 1,190,800 Total Expenditures 1,190,800 ENDING BALANCE, DECEMBER 31, 2021 $ - ENDING BALANCE BY SOURCE None $ - Subtotal - Less Surplus Funds - ENDING BALANCE $ - (See independent auditor's report.) -6-