The Illinois Tax Increment Association

Rebuilding Illinois Communities Since 1987


Annual Reporting Requirements for New and Existing TIFs

After November 1, 1999
(The effective date of the 1999 TIF Reforms)

The following provisions are contained in 65 ILCS 5/11-74.4-5 of the Illinois Revised Statutes.

(d)  After the effective date of this amendatory  Act  of the  91st  General Assembly,  a  municipality shall submit the following information for each redevelopment project area (i) to  the  State  Comptroller  under  Section  8-8-3.5  of  the Illinois Municipal Code and  (ii)  to  all  taxing  districts overlapping  the  redevelopment  project  area no later than 180 days after the close of each municipal  fiscal year or as  soon  thereafter  as  the  audited  financial statements become  available  and,  in  any  case,  shall  be submitted before the annual meeting of the Joint Review Board to   each   of   the   taxing   districts  that  overlap  the redevelopment project area:

(1)         Any  amendments  to the redevelopment plan, the redevelopment  project  area,  or  the  State  Sales  Tax Boundary.

(1.5)  A list  of  the  redevelopment  project  areas administered  by the municipality and, if  applicable, the date each redevelopment project area  was  designated  or terminated by the municipality.

(2)           Audited financial statements of the special tax allocation fund once a cumulative total of $100,000 has been deposited in the fund.

(3)           Certification of the Chief Executive Officer of the municipality that the municipality has complied  with all of the requirements of this Act during the preceding fiscal year.

(4)          An  opinion of legal counsel that the municipality is in compliance with this Act.

(5)          An analysis of the special tax allocation fund which sets forth:

(a)     the balance in the special tax allocation fund at the beginning of the fiscal year;

(b)     all  amounts  deposited in the special tax allocation fund by source;

(c)     an itemized list of all expenditures from the special tax allocation fund by category of        permissible redevelopment project cost; and

(d)     the balance in the special tax allocation fund at the end of the fiscal year including a breakdown of that balance by source and a breakdown of that balance identifying any portion of the balance that is required, pledged, earmarked, or otherwise designated for payment of or securing of  obligations and anticipated redevelopment project costs. Any portion of such ending balance that has not been identified or is not identified as being required, pledged, earmarked, or otherwise designated for payment of or securing of obligations or anticipated redevelopment projects costs shall be designated as surplus as set forth in Section 11-74.4-7 hereof.

(6)          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.

(7)          A statement setting forth all activities undertaken in furtherance of  the objectives of  the redevelopment plan, including:

(a)    Any project implemented in the preceding fiscal year.

(b)    A description of the redevelopment activities undertaken.

(c)    A  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.

(d)    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.

(e)    Information regarding contracts that the municipality's tax increment advisors or consultants have entered into with entities or persons that have received, or are receiving, payments financed by tax increment revenues produced by the same redevelopment project area.

(f)     Any reports submitted to the municipality by the joint review board.

(g)    A review of public and, to the extent possible, private investment actually undertaken to date after the effective date of this amendatory Act of the 91st General Assembly and estimated to be undertaken during the following year. This review shall, on a project-by-project basis, set forth the estimated amounts of public and private investment incurred after the effective date of this amendatory Act of the 91st General Assembly and provide the ratio of private investment to public investment to the date of the report and as estimated to the completion of the redevelopment project.

(8)    With regard to any obligations issued by the municipality:

(a)    copies of any official statements; and

(b)    an analysis prepared by financial advisor or underwriter setting forth: (i) nature and term of obligation; and (ii) projected debt service including required reserves and debt coverage.

(9)    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 this Act performed by an independent public accountant certified and licensed by the authority of the State of Illinois. The financial portion of the audit must be conducted in accordance with Standards for Audits of Governmental Organizations, Programs, Activities, and  Functions adopted by the Comptroller General of the United States(1981), as amended.

           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. For redevelopment plans or projects that would result in the displacement of  residents from 10 or more inhabited residential units or that contain 75 or more inhabited residential units, notice of the availability of the information, including how to  obtain the report, required in this subsection shall also be sent by mail to all residents or organizations that operate in the municipality that register with the municipality for that information according to registration procedures adopted under Section 11-74.4-4.2. All municipalities are subject to this provision.

In addition to the changes in the TIF Act the following amendment was also adopted to provide for the reports to the State Comptroller:

 (65 ILCS 5/8-8-3.5 new)

    Sec.  8-8-3.5. Tax Increment Financing Report.  The reports filed under subsection (d) of section 11-74.4-5 of the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code must be separate from any other annual report filed with the Comptroller. The Comptroller must, in cooperation with reporting municipalities, create a format for the reporting of information   described  in paragraphs  1.5  and 5 and in subparagraph (G) of paragraph 7 of subsection (d) of Section 11-74.4-5 of the Tax Increment Allocation Redevelopment Act that facilitates consistent reporting among the reporting municipalities. The Comptroller may allow these reports to be filed electronically and may display the report, or portions of the report, electronically via the Internet.  All reports filed under this Section must be made available for examination and copying by the public at all reasonable times.