University Park Board won’t dissolve TIF early to help school district, reviewing how money was used

The University Park Village Board signaled Tuesday it won’t dissolve a tax increment financing district before the end of the year, as requested by school officials, because of agreements and issues with submitting TIF reports to the state.

In September, Crete-Monee District 201-U officials requested the board dissolve TIF V before the end of the year so the funds can go back to the district to be used, among other things, toward building a new stadium.

But village manager Elizabeth Scott said she, Mayor Joseph Roudez and village attorneys recently discussed dissolving the TIF district, and learned some fund transfers were made years ago, such as a transfer from the TIF into the general fund to cover payroll. Given the transfers, Scott said, no lawyer has signed TIF reports required to be submitted to the state.

“Some of the agreements were vague and we need to review what they’re charging to the TIF. We need to confirm that all these things are TIF eligible,” Scott said.

“I wasn’t here during those times,” Scott said.

According to the Illinois state comptroller’s office website, the village hasn’t filed TIF documents for the last three fiscal years.

In a TIF district, property taxes for all government bodies are frozen at levels at the time the TIF is created and any increase due to higher property values, the increment, is used to pay for improvements or incentives. That money can be used to pay for public improvements.

This year, about $11.7 million was deposited into the TIF district, Scott said. There is about $34.3 million in the TIF fund, she said.

Village trustees expressed support Tuesday for Scott’s recommendation to declare a surplus and dissolve the TIF next year.

Roudez said declaring a surplus would allow the village to ask Will County officials to divide the TIF funds among the taxing bodies. Scott said village attorneys are still reviewing the TIF agreements to determine the surplus amount.

“It was determined that the TIF should not close early. Now is a good time to get a jump on this, to untangle the web and figure out what’s what,” Scott said. “This is going to be a huge plus for the village once we declare a surplus next year.”

Village attorney Burt Odelson said he and other attorneys in his firm will try to find a way to declare a surplus this year, as directed by Roudez, so taxing districts receive more funding. But first, Odelson said they have to determine if the TIF meets its obligations, which will likely mean a surplus won’t be declared to early next year.

“We don’t have a good handle, quite frankly, on the agreements that have been done over the years,” Odelson said.

Once a surplus is declared, Odelson said the taxing districts get money in a timely manner because it’s “a matter of writing checks.”

“It’s fairly quick,” Odelson said.

Ken Surma, assistant superintendent for business and operations for District 201, did not respond to requests for comment.

Trustee Theo Brooks said he has wanted to dissolve the TIF district for some time because he’d like to see tax dollars go toward taxpayer use. Brooks said he would like the school district to build a new stadium because, as a football coach who has spent time at the existing stadium, the students deserve something more modern.

But after doing more research in recent days, Brooks said the village can’t dissolve the TIF early.

“If we close the TIF early it will be a problem because, if I’m not mistaken, we have not reimbursed everybody over there like we’re supposed to,” Brooks said. “We still have some obligations that we need to take care of over there.”

Trustee Gina Williams said she supports declaring a surplus and dissolving the TIF next year so that village officials can figure out the agreements.

“I do not see no rush. There’s no fire,” Williams said. “We don’t need anything to bite us in the behind later.”