TAX INCREMENT FINANCING (T.I.F.)

TAX INCREMENT FINANCING (T.I.F.) Tax Increment Financing (T.I.F.) is a financing technique that can be used to pay for costs associated with the renovation of conservation areas. Funding is done by designating incremental increases in real estate and sales tax revenues above a frozen level to pay for infrastructure and other public improvements needed in the area. This technique is statutorily authorized by the "Tax Increment Allocation Redevelopment Act" 65 ILCS 5/11-74,4-1. The Village of Libertyville established a geographically identifiable T.I.F. District in 1986 which was due to expire in 2010. The technique of T.I.F. is being implemented on the basis of a redevelopment plan and subsequent sub area plan. In addition, a multi-year TIF implementation work plan has been created and will guide the Village's efforts in the TIF District. In 2010, the TIF was extended for a 12 year period and now expires in 2021. The extension funded ground improvements to the parking lot on the west side of the downtown and will be used for a second parking structure on the west side along with ground improvements on the east. As part of the agreements with the other taxing bodies in the TIF area, the Village will rebate 70% of all property tax revenues on an annual basis. Account Detail 776 Parking Improvement Civic Center Parking Construction $3,000,000 Civic Center Parking Design 500,000 Legion Lot Landscaping 25,000 $3,525,000 305

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VILLAGE OF LIBERTYVILLE MUNICIPAL BUDGET TAX INCREMENT FINANCING DISTRICT 09-00 BUDGETED TIF REVENUES ACTUAL ACTUAL BUDGET ESTIMATE APPROVED C 609 PROPERTY TAX 2,772,097 2,942,657 3,000,000 3,193,830 3,200,000 C 690 INTEREST 1,997 7,201 5,000 6,000 6,000 C 699 MISCELLANEOUS 0 0 0 0 0 TOTAL TIF REVENUES 2,774,094 2,949,858 3,005,000 3,199,830 3,206,000 BUDGETED EXPENDITURES ACTUAL ACTUAL APPROVED ESTIMATE APPROVED 776 PARKING IMPROVEMENTS 61,532 42,209 105,000 141,305 3,525,000 798 SURPLUS REBATED 1,940,466 2,059,852 2,100,000 2,235,680 2,300,000 799 MISCELLANEOUS 3,520 3,530 4,000 4,265 4,300 TOTAL TIF EXPENDITURES 2,005,518 2,105,591 2,209,000 2,381,250 5,829,300 TAX INCREMENT FINANCING DISTRICT SUMMARY ACTUAL ACTUAL BUDGET ESTIMATE APPROVED TOTAL REVENUES 2,774,094 2,949,858 3,005,000 3,199,830 3,206,000 TOTAL EXPENDITURES 2,005,518 2,105,591 2,209,000 2,381,250 5,829,300 NET INCOME / (LOSS) 768,576 844,267 796,000 818,580 (2,623,300) BEGINNING BALANCE MAY 1 550,158 1,318,734 2,163,001 2,163,001 2,981,581 ENDING BALANCE APRIL 30 1,318,734 2,163,001 2,959,001 2,981,581 358,281 307

IMPACT FEE FUND The Impact Fee Fund was established in the 2007-08 fiscal year. This fund will account for any parking impact fees paid for developments in the downtown area. When parking improvements are constructed, these funds will be transferred to a capital project fund to offset construction costs. 308

VILLAGE OF LIBERTYVILLE MUNICIPAL BUDGET IMPACT FEE FUND 12-00 BUDGETED REVENUES ACTUAL ACTUAL BUDGET ESTIMATE APPROVED 601 PARKING IMPACT FEE 0 0 0 0 435,000 602 SIDEWALK IMPACT FEE 0 2,452 0 4,900 0 690 INTEREST 0 0 0 0 0 699 MISCELLANEOUS 0 0 0 0 0 TOTAL IMPACT FEE REVENUES 0 2,452 0 4,900 435,000 BUDGETED EXPENDITURES ACTUAL ACTUAL APPROVED ESTIMATE APPROVED 784 TRANSFER TO CAPITAL PROJECTS 0 0 0 0 0 789 TRANSFER TO TIF 0 0 0 0 0 799 MISCELLANEOUS 0 0 0 0 0 TOTAL IMPACT FEE EXPENDITURES 0 0 0 0 0 IMPACT FEE FUND SUMMARY ACTUAL ACTUAL BUDGET ESTIMATE APPROVED TOTAL REVENUES 0 2,452 0 4,900 435,000 TOTAL EXPENDITURES 0 0 0 0 0 NET INCOME / (LOSS) 0 2,452 0 4,900 435,000 BEGINNING BALANCE MAY 1 0 0 2,452 2,452 7,352 ENDING BALANCE APRIL 30 0 2,452 2,452 7,352 442,352 309

CAPITAL IMPROVEMENTS The Capital Improvements Fund functions as a capital projects inventory for a variety of expenditures. These expenditures include road and parking improvements, street lighting and signalization, public building improvements, storm water/sewer improvements, sidewalk improvements, bridge improvements, and landscaping improvements. Account Detail 768 Streetscape Improvements 784 Sidewalks & Bike Paths Street light Painting $ 30,000 Various Sidewalk Replacement $ 65,000 773 Road Improvement Program 799 Miscellaneous 15-16 Program Engineering $ 90,000 Sticker Decals $ 3,000 15-16 Reconstruction 675,000 Vehicle Forms Printing 10,000 Pavement Patching 200,000 Postage for Stickers 6,500 Crack Sealing 35,000 Infrastructure Mgmt Study 35,000 Thermoplastic Pavement Marking 40,000 $ 54,500 $ 1,040,000 774 Storm Sewer Improvement North Shore Bikepath Drainage $ 121,000 Greentree Storm Sewer 15,000 Sunset Dr Storm Sewer 10,000 $ 146,000 310

VILLAGE OF LIBERTYVILLE MUNICIPAL BUDGET CAPITAL IMPROVEMENT FUND 40-00 BUDGETED REVENUES ACTUAL ACTUAL BUDGET ESTIMATE APPROVED 626 VEHICLE LICENSES 418,530 430,168 420,000 415,000 420,000 671 TELECOM INFRASTRUCTURE MAINT FEE 291,015 269,632 270,000 260,000 255,000 676 GRANTS 380,786 0 32,000 0 30,000 684 FEDERAL REIMBURSEMENT 0 0 0 0 0 690 INTEREST 2,995 4,301 4,000 3,000 3,500 691 TRANSFER GENERAL FUND 0 0 0 0 0 699 MISCELLANEOUS 842 2,293 0 3,200 25,000 TOTAL CAPITAL IMPROVEMENT REVENUES 1,094,168 706,394 726,000 681,200 733,500 BUDGETED EXPENDITURES ACTUAL ACTUAL APPROVED ESTIMATE APPROVED 768 STREETSCAPE IMPROVEMENTS - 28,804 50,000 30,000 30,000 773 ANNUAL ROAD IMPROVEMENT PROGRAM 166,906 963,900 1,400,000 1,029,000 1,040,000 774 STORM SEWER IMPROVEMENTS 36,508 58,820 70,000 76,195 146,000 775 STREETLIGHT REPLACEMENT/PAINTING 45,065 40,000 31,230 40,000 782 BRIDGE REPAIR & REPLACEMENT 50,000 10,000 50,000 781 ENGINEERING FAU PROJECTS 50,677 0 135,000 784 SIDEWALKS AND BIKE PATHS 113,300 66,309 60,000 60,000 65,000 789 PETERSON ROAD CORRIDOR 12,385 3,224 25,000 25,000 25,000 799 MISCELLANEOUS 19,516 21,913 59,500 19,500 54,500 TRANSFER TO GENERAL FUND 0 0 TOTAL CAPITAL IMPROVEMENT EXPENDITURES 399,292 1,188,035 1,889,500 1,280,925 1,450,500 CAPITAL IMPROVEMENT FUND SUMMARY ACTUAL ACTUAL BUDGET ESTIMATE APPROVED TOTAL REVENUES 1,094,168 706,394 726,000 681,200 733,500 TOTAL EXPENDITURES 399,292 1,188,035 1,889,500 1,280,925 1,450,500 NET INCOME / (LOSS) 694,876 (481,641) (1,163,500) (599,725) (717,000) BEGINNING BALANCE MAY 1 1,508,874 2,203,750 1,722,109 1,722,109 1,122,384 ENDING BALANCE APRIL 30 2,203,750 1,722,109 558,609 1,122,384 405,384 311

ROAD IMPROVEMENT FUND This Road Improvement Fund accounts for the proceeds and expenses of the bonds issued for road rehabilitation. The bonds are accounted for in the bond fund and were approved through a referendum. A total of $20 million in bonds will be issued over 4 years beginning in 2012. Account Detail 773 Road Rehabilitation 15-16 Rehabilitation $ 3,476,000 15-16 Engineering 330,000 16-17 Engineering 100,000 14-15 Pavement Rehabilitation 50,000 CCDD Engineering 50,000 Crack Sealing 40,000 15-16 Rehabilitation-Bell Lane 24,000 Construction Management 30,000 $ 4,100,000 312

VILLAGE OF LIBERTYVILLE MUNICIPAL BUDGET ROAD IMPROVEMENT FUND 41-00 BUDGETED REVENUES ACTUAL ACTUAL BUDGET ESTIMATE APPROVED 676 GRANTS 0 0 0 0 0 690 INTEREST 5,304 14,063 10,000 16,000 15,000 695 BOND ISSUE PREMIUM 50,275 86,768 0 56,260 0 698 BOND PROCEEDS 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 699 MISCELLANEOUS 0 0 0 0 0 TOTAL ROAD IMPROVEMENT REVENUES 5,055,579 5,100,831 5,010,000 5,072,260 5,015,000 BUDGETED EXPENDITURES ACTUAL ACTUAL BUDGET ESTIMATE APPROVED 728 BOND ISSUE COSTS 33,435 41,645 42,000 46,385 45,000 773 ANNUAL ROAD IMPROVEMENT PROGRAM 624,723 2,746,907 5,543,210 3,342,690 4,100,000 799 MISCELLANEOUS 23 0 0 0 0 TRANSFER TO GENERAL FUND 0 0 0 0 0 TOTAL CAPITAL IMPROVEMENT EXPENDITURES 658,181 2,788,552 5,585,210 3,389,075 4,145,000 ROAD IMPROVEMENT FUND SUMMARY ACTUAL ACTUAL BUDGET ESTIMATE APPROVED TOTAL REVENUES 5,055,579 5,100,831 5,010,000 5,072,260 5,015,000 TOTAL EXPENDITURES 658,181 2,788,552 5,585,210 3,389,075 4,145,000 NET INCOME / (LOSS) 4,397,398 2,312,279 (575,210) 1,683,185 870,000 BEGINNING BALANCE MAY 1 0 4,397,398 6,709,677 6,709,677 8,392,862 ENDING BALANCE APRIL 30 4,397,398 6,709,677 6,134,467 8,392,862 9,262,862 313

PARK IMPROVEMENT FUND This fund was established in 1995 to account for and accumulate funds expressly for improvements to the public parks system. Sources of funding for this Fund are park impact fees, grants and transfers from the General Fund operating budget. Account Detail 782 Park Improvement Relocate Hockey Rink $ 250,000 Riverside Preschool Exterior Repair 45,000 Butler Lake Weed Spraying 13,000 Shoreline Plant Woody Burn 10,000 Butler Lake Shoreline Management 10,000 Buy A Brick Program 10,000 Plans for Riverside Gutters 10,000 Butler Park Dumpster Enclosure 5,500 Adler Park Dumpster Enclosure 4,750 Riverside Park Dumpster Enclosure 2,500 $ 360,750 314

VILLAGE OF LIBERTYVILLE MUNICIPAL BUDGET PARK IMPROVEMENT FUND 45-00 BUDGETED REVENUES ACTUAL ACTUAL BUDGET ESTIMATE APPROVED 654 PARK IMPACT FEES 157,857 214,753 80,000 50,000 296,100 685 GRANT REIMBURSEMENT 25,800 11,759 0 0 0 686 BUY A BRICK 0 0 0 0 10,000 687 SALE OF ASSETS 0 0 0 150,000 1,678,430 690 INTEREST 69 72 75 0 0 691 TRANSFER GENERAL FUND 0 0 0 0 0 698 WETLAND MITIGATION 0 0 0 0 0 699 MISCELLANEOUS 9,830 17,991 10,000 8,000 10,000 TOTAL PARK IMPROVEMENT FUND REVENUES 193,556 244,575 90,075 208,000 1,994,530 BUDGETED EXPENDITURES ACTUAL ACTUAL APPROVED ESTIMATE APPROVED 782 PARK IMPROVEMENT COSTS 85,339 135,410 126,800 125,920 360,750 788 TRANSFER TO SPORTS COMPLEX 150,000 791 TRANSFER SALES TAX BOND FUND (Rec Offices) 74,190 73,500 76,590 76,590 281,590 799 MISCELLANEOUS 0 0 0 0 112,500 TOTAL PARK IMPROVEMENT FUND EXPENDITURES 159,529 208,910 203,390 202,510 904,840 PARK IMPROVEMENT FUND SUMMARY ACTUAL ACTUAL BUDGET ESTIMATE APPROVED TOTAL REVENUES 193,556 244,575 90,075 208,000 1,994,530 TOTAL EXPENDITURES 159,529 208,910 203,390 202,510 904,840 NET INCOME / (LOSS) 34,027 35,665 (113,315) 5,490 1,089,690 BEGINNING BALANCE MAY 1 506,465 540,492 576,157 576,157 581,647 ENDING BALANCE APRIL 30 540,492 576,157 462,842 581,647 1,671,337 315

PUBLIC BUILDINGS IMPROVEMENT FUND Established to account for and accumulate funds for capital improvements to Village buildings including the Village Hall, Schertz Municipal Building, Fire Stations and the Public Works Building. Ongoing funding will come from transfers from the General Fund. Account Detail 790 Village Hall 795 Schertz Building Replace Floor in Hallway & Kitchen $15,000 Repair Exterior Handrails $18,000 Repair Fire Sprinklers 6,300 Replace PD Mech RTU 30,000 Landscape Material 1,000 Replace Tile-Booking Room 5,000 Wall Heaters 800 Consultant For Mechanical Elevator Upgrades 3,500 System 3,500 Replace Counters 1 st Floor 2,500 Elevator Upgrades 3,000 29,100 Upgrade Fire Sprinkler System 4,000 794 Fire Station Landscape Materials 2,500 Elevator Upgrades $3,500 Wall Heaters 1,200 67,200 316

VILLAGE OF LIBERTYVILLE MUNICIPAL BUDGET PUBLIC BUILDING IMPROVEMENT FUND 46-00 BUDGETED REVENUES ACTUAL ACTUAL BUDGET ESTIMATE APPROVED C 680 GRANT 129,805-291 0 0 0 C 690 INTEREST 26 27 25 0 0 C 691 TRANSFER GENERAL FUND (Public Buildings) 55,000 55,000 55,000 55,000 85,000 C 699 MISCELLANEOUS 0 0 0 0 0 TOTAL PUBLIC BLG IMPROVEMENT FUND REVENUES 184,831 54,736 55,025 55,000 85,000 BUDGETED EXPENDITURES ACTUAL ACTUAL APPROVED ESTIMATE APPROVED 790 VILLAGE HALL 0 23,108 32,200 24,650 29,100 792 PUBLIC WORKS BUILDING 26,806 0 0 0 0 794 FIRE STATIONS 111,454 0 0 0 3,500 795 SCHERTZ MUNICIPAL BUILDING 19,923 0 17,200 17,200 67,200 796 PARK/RECREATION BUILDINGS 0 0 0 0 0 799 MISCELLANEOUS (Contingency) 0 0 0 0 0 TOTAL PUB BLDG IMPROVEMENT FUND EXPENDITURES 158,183 23,108 49,400 41,850 99,800 PUBLIC BUILDING IMPROVEMENT FUND ACTUAL ACTUAL BUDGET ESTIMATE APPROVED TOTAL REVENUES 184,831 54,736 55,025 55,000 85,000 TOTAL EXPENDITURES 158,183 23,108 49,400 41,850 99,800 NET INCOME / (LOSS) 26,648 31,628 5,625 13,150 (14,800) BEGINNING BALANCE MAY 1 154,966 181,614 213,242 213,242 226,392 ENDING BALANCE APRIL 30 181,614 213,242 218,867 226,392 211,592 317

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