So I went to the 2015 TIF Joint Review Board annual meeting. The City of DeKalb was represented by Anne Marie Gaura, Jennifer Diedrich, Cathy Hailey and Ellen Divita. Rob Galick (Kishwaukee College), Jason Mangum (DeKalb Park District), Eric Johnson (DeKalb Township), and Christine Johnson (DeKalb County) were present. Kathy Orr designated as the City’s TIF attorney participated via telephone conference call.
Absent were District 428, DeKalb Sanitary District, DeKalb Public Library or any other local taxing unit affected by DeKalb’s Central TIF District or TIF District 2. Most notably absent — based on historical TIF dependency — were District 428 and the DeKalb Public Library. District 428 has a request in front of the DeKalb city council for an additional $2 million in TIF funding to refurbish school facilities. According to the TIF report distributed to members of the TIF Joint Review Board city staff anticipates the city council will approve $500,000 of that request.
State law requires that the City of DeKalb at least annually convene a meeting of the Joint Review Board (JRB) for each of the City’s Tax Increment Financing Districts. This joint review board is made up of a representative from each of the overlapping governments that receive property taxes from a DeKalb property owner and one member from the public at large for each TIF District. At that meeting, the annual TIF reports are reviewed, minutes of previous meetings are approved, any new TIF legislation reviewed, and a discussion of any new TIF projects and initiatives.
Tiff attorney Orr advised the JRB not to elect a member of the public to either TIF district at this meeting. I was the only member of the public present living in the Central TIF District. None were present from TIF District 2.
Orr also advised that past JRB meeting minutes could only be approved by a member of the board who had attended a JRB meeting. The 2014 JRB meeting was attended only by Jennifer Diedrich and public member Sheila Prahlad so no minutes were approved. The only JRB member in attendance of the 2013 annual meeting was Jason Mangum of the park district who approved those minutes.
The Illinois TIF Act (65 ILCS 5/11-74.4-1) requires the municipality to submit an annual TIF report to the Illinois State Comptroller. Paragraph 7 (G) of the Act requires a review of public and, to the extent possible, private investment actually undertaken to date 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 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.
Project 18 identified in the Comptroller’s report as the DeKalb Public Library expansion reflected a $2 million public investment and an $18 million private investment. That’s pretty impressive as the economic development side of TIF was designed to spur private investment. However those paying attention to the finances of the library expansion project knows that the City of DeKalb issued $6.5 million in general obligations (in addition to the $2 million TIF grant). The State of Illinois awarded an $11 million grant for the expansion but is holding back on the remaining $4.5 million of that grant due to budget or lack thereof difficulties. The library needed the city council to approve a surprise last minute addition property tax levy request of $500,000 to get a local bank to lend them up to the $4.5 million the state owes. That’s hardly private investment but according to Anne Marie Gaura the City chose to report on the $2 million in TIF as public investment.
The Central TIF District will generate $6.4 million in revenue for the reporting year. Expenditures totalling $3 million were reported which included Ellwood-Nehring property improvements, Egyptian Theatre improvements, Pappas Phase II redevelopment project, three low income housing grants, DeKalb Taylor Municipal Airport improvements, Haish Municipal Parking Lot improvements and improvements of street patching, milling, overlaying, sidewalk repairs and alley reconstruction for Seaman Ave from Sunrise to Clark; N. 9th St. from Pleasant to Oak; and North 14th St. from the north end to Dresser and from Clark to Pleasant.
When the Central TIF District was extended in 2008 with landmark legislation signed by then Gov. Rod Blagojevich (Public Act 95-0709, which became effective January 29, 2008) 50% of the increment resulting from the ad valorem taxes levied upon real property in the Redevelopment Project Area would be declared surplus and distributed as provided for in an intergovernmental agreement between the City of DeKalb and taxing districts that extend into the Central TIF District. The money returned to the taxing bodies was done so “unencumbered” meaning it could be spent any way the receiving governmental unit desired.
For the reporting year $3.2 million will be distributed to the taxing units including the City of DeKalb ($365,000). A fund balance of $2.6 million remains.
DeKalb’s TIF District #2
TIF District 2 expires in FY2018. Increment revenue for the reporting year is $3.5 million. The surplus sharing agreement for the Central TIF District does not apply to District 2. Revenues generated for the reporting year are earmarked for renovations to City Hall, annual improvenments for Barb City Manor, three low income housing grants and street/alley repair and maintenance for areas including E. Roosevelt St. from S. 4th to S. 7th; Prospect Ave from S. 4th to S. 7th; Culver from S. 4th to S. 7th; S. 2nd from the end of the brick pavement to Taylor; and Leonard from W. Garden to W. Roosevelt.
Any surplus funds from TIF 2 is expected to be transferred to the Central TIF District to help with downtown redevelopment.
Postscript:
Rants and Raves of Mac McIntyre
When the meeting was opened to questions from the floor my questions were interrupted by Gaura. She wanted me to identify myself as either a member of the public or a member of the press. If I’m a member of the press then the protocol is wait until the meeting is over and then ask your questions. I’m both and with Gaura that’s necessary otherwise if I ask a question as the media DeKalb’s painful FOIA process begins.
Prior to Gaura’s arrival to DeKalb the city manager would hold press conferences in advance of public meetings to go over the agenda packet with the media and allow more technical questions to be asked.
The current method is straight out of the Delphi for Dummies handbook. Ask a question and be immediately challenged to produce and explain your sources of information for background.
In this meetings case my question was regarding the $2 million vs $18 million public/private investment claim for the library expansion. Instead of answering Gaura and Diedrich wanted to know where I got my information. Was it on the agenda material or did I dig it up on the Internet?
It was directly from the TIF report requred to be submitted to the Comptroller. Project 18.
I was expecting an answer more like oooppps maybe you’ve discovered a typo. Instead we had to wait until we scolled through the 122-page report to get the unexpected and disappointing answer: The City of DeKalb only considers TIF as public investment.
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