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HomeMy WebLinkAboutOrdinance #2056 CITY OF CANTON, FULTON COUNTY, ILLINOIS ORDINANCE NO. : C AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT by and between CITY OF CANTON, FULTON COUNTY, ILLINOIS and BOARD OF EDUCATION CANTON UNION SCHOOL DISTRICT NO. GG ADOPTED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF CANTON, ILLINOIS, ON THE GTH DAY OF DECEMBER, 2011. CITY OF CANTON, ILLINOIS: ORDINANCE NO. U~~~JI.t~J AN ORDINANCE APPROVING AND AUTHORIZING THE EXECUTION OF AN INTERGOVERNMENTAL AGREEMENT BY AND BETWEEN CITY OF CANTON, FULTON COUNTY, ILLINOIS AND BOARD OF EDUCATION, CANTON UNION SCHOOL DISTRICT NO. GG BE IT ORDAINED BY THE CITY OF CANTON THAT: SECTION ONE: The Intergovernmental Agreement with the Board of Education, Canton Union School District No. 66 (ExhibitA attached) is hereby approved. SECTION TWO: The Mayor is hereby authorized and directed to enter into and execute on behalf of the Ciry said Intergovernmental Agreement and the Ciry Clerk of the Ciry of Canton is hereby authorized and directed to attest such execution. SECTION THREE: The Intergovernmental Agreement shall be effective iinmediately upon establishment and shall be effective only upon establishment of Canton 2- Rt. 9/Chestnut St. Tax Increment Financing District. SECTION FOUR: This Ordinance shall be in full force and effect from and after its passage and approval as required by law. PASSED, APPROVED AND ADOPTED by the Mayor and Ciry Council of the Ciry of Canton, Illinois, on the 6TH day of December, A.D., 2011, and deposited and filed in the Office of the City Clerk of said Ci on that date. MAYOR & ALDERMEN AYE VOTE NAY VOTE ABSTAIN / ABSENT Ald. David Pickel x Ald. James Hartford X Ald. Jeffrey Fritz x Ald. Craig West x Ald. Gexald Ellis Ald. Justin Nelson Ald. Eric Schenck X Ald. Jexemy Pasley X Hon. Kevin Meade, Mayor TOTAL VOTES ;F - APPROVED: ~ ' ~ ~ ' ~ , Date r-L/ ~7 / 2011 `~I .~.evin Me de, M yor, City of Canton ATTEST: ~-~y , Date: / lL / 2011 Dian cker, City Clerk, City of Canton ATTACHMENTS: EXHIBIT A: Intergovernmental r~greement by and between City of Canton, Fulton County, Illinois and Canton Union School District No. 66. EXHIBIT A INTERGOVERNMENTAL AGREEMENT by and between CITY OF CANTON, FULTON COUN'TY, ILLINOIS and BOARD OF EDUCATION, CANTON UNION SCHOOL DISTRICT NO. GG f ~ a INTERGOVERNMENTAL AGREEMENT by and between CITY OF CANTON, FULTON COUNTY, ILLINOIS and BOARD OF EDUCATION CANTON UNION SCHOOL DISTRICT NO. G6 NOVEMBER 2011 INTERGOVERNMENTAL AGREEMENT by and between CITY OF CANTON, FULTON COUNTY, ILLINOIS and BOARD OF EDUCATION CANTON UNION SCHOOL DISTRICT NO. GG This Intergovernmental Agreement is entered into this day of . 'L. 2011, by and between the City of Canton, Fulton County, Illinois, an I~nois Municipal Corporation ("Ciry"), and the Board of Education of Canton Union School District No. 6G, an Illinois School District ("School District"), pursuant to the 1970 Illinois Constitution and Illinois Compiled Statutes. PREAMBLE WHEREAS, the City of Canton ("Ciry") is an Illinois Municipal Corporation organized under the Constitution and Statutes of the State of Illinois ; and WHEREAS, Canton Union School District No. 66, (the "School District") is an Illinois School District organized under the Statutes of the State of Illinois; and WHEREAS, the 1970 Illinois Constitution, Article VII, Section 10, and the Illinois Compiled Statutes, 2009, 65 ILCS 5~11-74.4-1 et. .reg. provide legal authoriry for intergovernmental privileges and ~ authoriry to be enjoyed jointly b~~ school districts and municipalities as well as other public bodies politic; and WHEREAS, the Tax Increment Allocation RedevelopmentAct ("TIF Act"), Illinois Compiled Statutes, 2009, as amended, 65 ILCS 5/11-74.4-1 et .req. authorizes a municipality to enter into all contracts necessary or incidental to the implementation and furtherance of its redevelopment plan and project; and WHEREAS, the Cit~~ is proposing to adopt a Rede~Telopment Plan and Projects and designate a Redevelopment Project Area (the "Area") pursuant to the TIF Act to be known as the Canton 2- Kt. 9~Che.rtnut St. TIF Di.rtrict (the "TIF District") which is an area located in the School District and which will impact the growth of the School District's taxing base; and WHEREAS, this Agreement is contingent in its entirety~ on City~'s successful establishment of the TIF District. WHEREAS, the City has determined that it wishes to reduce the negative impact on the real estate base of the School District from the establishment of the TIF District, as set forth herein; and WHEREAS, an~~ payments pro~Tided for hereunder are not pa~~ments in lieu of taxes as defined by the TIF Act; and -1- WHEREAS, the Cit~~ agrees to exercise its authority under Section 5/ 11-74.4-7 of the TIF Act to declare, on an annual basis, a certain amount of the incremental property tax revenues as surplus funds (as defined in the TIF Act), to be returned to the County Collector of Fulton County for the Counry's distribution to all ta~ng districts as described in Paragraphs 2 and 3 below, including the School District, from the Special Tax Allocation Fund established for the TIF District (the "Fund"), which Fund shall receive the incremental propert~~ tax revenues generated within the TIF District; and WHEREAS, the City agrees to exercise its authority under Section 5/11-74.4-3 (c~(7) of the TIF Act to further reduce the negative impact on the real estate base of the School District from the establishment of the TIF District by reimbursing certain capital costs incurred in furtherance of the objectives of the TIF District Redevelopment Plan and Projects; and WHEREAS, the School District shall use any payments received pursuant to Section 5/11- 74.4-3(c~(7) for reimbursement of capital and equipment expenditures relating to any facility and educational program of the School District; and WHEREAS, in consideration of the City's pledge to reimburse the School District as described herein, the School District agrees that it shall fully support the City's establishment of the TIF District as set forth in Section III, I~aiver of Objection.r, and WHEREAS, the Parties declare that this Agreement is adopted pursuant to the 1970 Illinois Constitution, Article VIl, Section 10; Illinois Compiled Statutes 1992, Ch. 5 Section 220/1 etseq., the Tax Increment Allocation Redevelopment Act, Illinois Compiled Statutes, 1992, as amended, Ch. 65 Section 5/11-74.4-1 et.reg. and other applicable statutes. AGREEMENTS NOW, THEREFORE, the Parties agree to implement these statements, findings, and policies as follows: 1. Incorporation of Preambles: The Parties find that all of the recitals contained in the preamble to this Agreement are full, true and correct and incorporate them into this Agreement by this reference. 2. Surplus Funds: Each year during the term of this Agreement commencing with the City's Fiscal Year 2013, the Cin~ agrees to declare as "surplus funds" and set aside annually within the Canton Rt.9/Chestnut Street TIF District Special Tax Allocation Fund (the "Fund") twenty percent (20%) of the gross total real estate tax increment deposited annuall5~ into the Fund. All surplus funds in the Special Tax Allocation Fund shall be distributed annually within 180 daj~s after the close of the City's fiscal year by being paid by the City Treasurer to the Fulton Count~~ Collector. The School District shall then receive from the Fulton Count~~ Collector, pursuant to Section 11-74.4-7 of the TIF Act, its pro-rata share of the total amount of declared "surplus funds" as part of the annual distribution to the respective ta~ng districts in the same manner and proportion as the most recent distribution b~~ the Fulton County Collector to the affected districts of real propert~~ taxes from real property in the TIF District Redevelopment Project Area. The -2- School District shall use such funds received under this Paragraph 2 for the operation of any School District facility~ and related educational expenses incurred by the School District within the City of Canton. A. Pursuant to 65 ILCS 5/11-74.4-7 of the TIF Act, the City and School District further acknowledge that "Surplus Funds" are defined as follows: "Obligations secured by the special tax allocation fund set forth in Section 11-74.4-8 for the redevelopment project area may be issued to provide for redevelopment project costs. Such obligations, when so issued, shall be retired in the manner provided in the ordinance authorizing the issuance of such obligations by the receipts of taxes levied as specified in Section 11-74.4-9 against the taxable property included in the area, by revenues as specified by Section 11-74.4-8a and other revenue designated by the municipality. A municipality may in the ordinance pledge all or any part of the funds in and to be deposited in the special tax allocation fund created pursuant to Section 11-74.4-8 to the payment of the redevelopment project costs and obligauons. Any pledge of funds in the special tax allocauon fund shall provide for distribution to the taxing districts and to the Illinois Department of Revenue of moneys not required, pledged, earmarked, or otherwise designated for payment and securing of the obligations and anticipated redevelopment project costs and such excess funds shall be calculated annually and deemed to be "surplus" funds. In the event a municipaliry only applies or pledges a portion of the funds in the special tax allocation fund for the payment or securing of anticipated redevelopment project costs or of obligations, any such funds remaining in the special tax allocation fund after complying with the requirements of the application or pledge, shall also be calculated annually and deemed "surplus" funds. All surplus funds in the special tax allocation fund shall be distributed annuall~~ within 180 da}'s after the close of the municipaliry's fiscal year by being paid by the municipal treasurer to the County Collector, to the Department of Revenue and to the municipaliry in direct proportion to the tax incremental revenue received as a result of an increase in the equalized assessed value of property in the redevelopment project area, tax incremental revenue received from the State and tax incremental revenue received from the municipaliry, but not to exceed as to each such source the total incremental revenue received from that source. The County Collector shall thereafter make distribution to the respective ta~ng districts in the same manner and proportion as the most recent distribution by the county collector to the affected districts of real property taxes from real property in the redevelopment project area." 3. Pavment bv City to School District for Reimbursement of Capital Costs: Each year during the term of this Agreement commencing ~vith Tax Year 2012 payable 2013, the City shall pa~~ to the School llistrict from the real estate increment created by any development or increase in equalized assessed valuation within the Canton 2- Rt9~Chesmut St TIF District a percentage of the total real estate tax increment revenue deposited annuall~~ into the Special Tax Allocation Fund which in addiuon to the School District's pro-rata share of surplus funds received under Paragraph 2 above to insure that the School District receives a total cumulati~Te annual sum equal to ten percent (10.0%) -3- of the real estate tax increment generated annually within the Canton 2- Rt9/Chestnut St. TIF District as set forth in the example provided in Exhibit 1. The School District shall use such funds received under Section 5/11-74.4-3(c~(7) of the TIF Act for capital and equipment expenditures for any school district facility and educational expenses incurred within the City of Canton and shall provide the City with a list of such expenditures annually as set forth in Paragraphs 3(A), 3(B) and 3( C) below. The City shall pay the sum determined above to the School District within a reasonable time after the City's receipt of the real estate tax increment generated in the TIF District and in the same proportions as actually received by the Cit~~. For example, the City may receive an estimated one-third of the increment in August. The City would pay one-third of the amount computed above to the School District. A. The Parties agree and the City Council has determined that the redevelopment projects within the boundaries of the TIF District may result in the School District incurring substantial increased capital costs with regard to the school buildings and facilities and would result in the need for additional capital improvements which are necessary and directly result from the redevelopment projects. The School District at its discretion may use all or part of the TIF funds described above for any capital and equipment expenditures relating to any facility and educational program of the School District located within the City of Canton. B. For purposes of this Agreement, the term "capital costs" shall be defined by the Illinois School Code and Rules and Regulations promulgated thereunder or as set forth in publications of the Illinois State Board of Education and shall include costs of all real property, and all personal property having a value in excess of $500 and, having a useful life of six (6) months including, but not limited to: 1. Acquisition of land to serve the immediate or future needs of children from the development; 2. Improvement to any e~sting school site which already serves such needs; 3. Development of classrooms, parking lots, sidewalks, traffic signals, internal roadways, connections with water, sewer and electrical lines; pla~~grounds; recreation grounds and athletic fields; 4. Remodeling or renovation of school facilities; 5. Purchase and prefabrication of classroom units; 6. Material, goods or equipment as set forth in Exhibit A of the Illinoi.c Progra~~z Accou~ating Mqnrral for Local Education Agencie.r prepared by the Illinois State Board of Fducation. -4- 7. Buses, maintenance equipment, office equipment, district vehicles, or playground equipment; or 8. Any other piece of capital equipment deemed necessary by the School District. C. The School District shall annuall~~ provide a letter to the City certifying the annual payment from the City to the School District was spent on capital costs as described in the above Paragraph 3, and/or for the costs of operating its job training, advanced vocational education and career education programs. The School District shall also provide the Ciry annually ~~ith a copy of the School District's audits to assist in verifying capital costs. The School District shall hold the Ciry harmless from any claims and/or damages, including reasonable attorney fees of the Ciry, and shall defend the Cit~~ in any action or proceeding which may be threatened and/or commenced challenging the payment of capital costs, the definition of capital costs, and/or the eligibility of payments for capital costs pursuant to this Agreement. The School District recognizes that the Ciry may be prohibited from making any payments required hereunder pending resolution of any challenge and further holds the Ciry harmless for an}~ non-payment or delayed payment due to this reason. The City shall not initiate any claims against the School District for the purpose of contesting expenditures by the School District of the funds payable under this Agreement and the Cit~~ shal] not withhold payments under the terms of this Agreement based upon an assertion that the School District is not using the funds to pay capital costs, so long as the School District provides an annual letter to the Ciry as described above and annually provides the Cit~~ with a copy of the School District's audit. The School District shall not be obligated to hold harmless and/or defend the Cit~~ should it initiate any claims against the School District for the ~ purpose of contesting the expenditure of funds paid or payable to the School District under this Agreement. D. In the event that the capital costs of training, advanced vocational education and career education expenditures exceed the amount available for distribution from the Special Tax Allocation Fund, any unreimbursed capital costs and job training, advanced vocational education and career education expenditures may be carried over to a subsequent year or years and paid by the City (but shall not exceed the annual payment as set forth in the above Paragraph 3). E. The City's reimbursement to the School District for capital costs as set forth in the aUove Paragraph 3, shall be made prior to the Ciry's declaration of surplus funds pursuant to Paragraph 2, and shall be calculated pursuant to the School District's antici~ated pro-rata share of the surplus funds. In the event the Cit~~'s actual reimbursement to the School District for capital costs as set forth in the above Paragraph 3, together with the School llistrict's actual pro-rata share of surplus funds received based on Paragraph 2 is found to exceed a total cumulative annual sum equal to ten percent (10.0%) of the real estate tax increment generated -5- annuall~~ within the Canton 2- Rt.9/Chestnut St. TIF District, the City shall deduct said overpayment from future reimbursements of capital costs. F. The Parties acknowledge and agree that under the current system of State of Illinois School Enutlement payments, the School District does not necessarily lose the full amount of real estate taxes generated by its levy and extended against the incremental real estate increase. Further, the Parties agree that the actual real estate taxes lost to the School District are subject to several factors in part beyond the control of the Parties and include: 1) the School District's operating tax rate; 2) the annual statutory State Entitlement; and 3) other relevant tax limits and formulas. The Parties acknowledge that the entire method of funding common schools may be altered to lessen or increase the dependency of school funding on real property taxation. It is the intention of the Parties that if the method for funding common schools is altered, then the reimbursement method contained in this Agreement will be altered to reflect the increase or decrease in dependency of school funding or real properry taxation. G. In the event that TIF reimbursements to ta~ng bodies for capital costs are at any time invalidated during the life of this Agreement, then pursuant to Section 65 ILCS 5/11-74.4-7 of the Act, the equivalent amounts described in Paragraph 3 shall be set aside by the City each year as additional surplus funds and returned to the Fulton County Treasurer who will proportionatel~~ redistribute those funds to all affected taxing bodies within the Canton Rt.9/Chestnut St. TIF District 2 Redevelopment Project Area. 4. Waiver of Objections: The Board of Education of Canton Union School District No. 66 b~~ its execution and approval of this Agreement hereby waives forever any and all right to directly or indirectl5~ set aside, modify or contest in any manner the establishment or the administration of Canton 2- Rt.9/Chestnut St. TIF District including the Redevelopment Plan, Projects and Area as proposed and approved by the City. Nothing contained herein is to be construed to give the School District any right to participate in the administration of the TIF District Redevelopment Plan or Projects. 5. Binding Effeet: This Agreement shall be binding on the Parties and their respective successors-including successors in office. Should the School District merge, this Agreement shall apply to the successor School District. 6. Governing Law: This Agreement is governed by and shall be construed in accordance with the laws of the State of Illinois. 7. Term: This Agreement shall become effective upon the establishment of the TIF District and shall remain in effect until either the Cin~ adopts an Ordinance dissolving the TIF District or until the termination of the TIF District even if the termination occurs after the initial term of 23 years. Whether the TIN District e~sts for the entire 23 years as called for under the Plan or terminates at some other time, the City will pa5~ from incremental real estate taxes distributed to the Ciry in the year following termination, the -6- sums due the School District for the prior y~ear which remain unpaid, if such increments are received by the City from the Count~~. 8. Amendments, Waivers, Modifications: No amendment, waiver or modification of any term or condition of this Agreement shall be binding or effective for any purpose unless expressed in writing and adopted by each of the Parties as required by law. 9. Real Estate Increment Information: The Administrators of the TIF Plans and City agree to provide the School District with information developed to establish the initial equalized assessed valuation of the TIF District and the calculations for successive years' computation of the real estate increment for the TIF District as a whole. The Administrators further agree to provide the School District with a copy of the TIF Annual Reports when they are presented to the Ciry Council and such other documents or information required by law to be given to ta~ng bodies. 10. Enforcement: The Ciry and School District agree that in the event either party to this Agreement should fail to perform or avoid its obligations hereunder, the party not in breach may initiate an action in the local circuit court to enforce the terms and conditions set forth herein and shall be permitted to assess all costs and reasonable attorneys' fees incurred by reason of such enforcement action against the party in breach, which costs and reasonable attorneys' fees shall be prompdy paid. 11. Complete Agreement: This Agreement expresses the complete and final understanding of the Parties with respect to the subject matter as of the date of its execution. Each party acknowledges that no representations have been made which have not been set forth herein. 12. Partial Invaliditv: In the event that any provision of this Agreement shall be held invalid or unenforceable by an~~ court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 13. Notiees: All notices, demands, requests, consents, approvals or other instruments required or permitted by this Agreement shall be in writing and shall be executed by the party or an officer, agent or attorney of the party, and shall be deemed to have been effective as of the date of actual deliverv, if delivered personally, or as of the third (3rd) day from and including the date of posting, if mailed by registered or certified mail, return receipt requested, with postage prepaid addressed as follows: SCHOOL DISTRICT IVith Copy to: Superintendent Brian Braun, Attorney Canton Union School Dist No. 66 Miller, Tracy, Braun, Funk & Miller, 20 West Walnut Street Ltd Canton, Illinois 61520 P.O. Box 3730 Champaign, Illinois 61826 -7- ci'rY w~th copy ta: City Clerk Jacob & Klein, Ltd. City of Canton Economic Development Group, Ltd. 2 N. Main St. 1701 Clearwater Avenue Canton, Illinois 61520 Bloomington, Illinois 61704 14. Authority to Execute: The undersigned represent that they have the authority of their respective governing authorities to execute this Agreement. l IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on ~'..~D(' ~ , 2011. CANTON UNION SCHOOL DISTRICT CITY OF CANTON, an Illinois Municipal NO. 66: Corporation: By: i By: ~ President, Board of Education, Canton Ma or, City of Canton Union School District No. 66 Attest. Attest: Secretary, Board of Education, Canton er , City of Canton Union School District No. 66 EXHIBIT 1 ATTACHED H:AC1INTON\RT 9 TIF District\s~~reements\School IGs~\Ca~~ton Rt9 TTF & Canto~~ L'nion SD #66_Final IGA_170711.~~~pd -8- -9- EXHIBIT 1 EXAMPLE CALCULATION OF ANNUAL SURPLUS FUNDS AND REIMBURSEMENT FOR CAPITAL COSTS I. Surplus Funds as herein provided in Paragraph 2 of this Agreement. A. Assumptions: 1. The TIF District Equalized Assessed Valuation Increment ("EAV Increment"), for this example, is . . . . . . . . . . . . . . . . . . . . . . . . $1,000,000 2. The real estate tax rares of affected ta~ng districts, for this example, are as follows: Percent of Tax Rate Total a) Fulton County . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3336% 14.7% b) Canton Township . . . . . . . . . . . . . . . . . . . . . . . 0.2489% 2.7% c) Canton Township Road & Bridge . . . . . . . . . . 0.3312% 3.6% d) Spoon River College #534 . . . . . . . . . . . . . . . . 0.5723% 6.3% e) Canton Union School District #66 . . . . . . . . . 3.9310% 43.2% ~ Fulton Counry Ambulance . . . . . . . . . . . . . . . . 0.1229% 1.4% g) Canton Park District . . . . . . . . . . . . . . . . . . . . . 0.7906% 8.7% h) Cit~~ of Canton . . . . . . . . . . . . . . . . . . . . . . . . . . 1.7614% 19.4% TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.0919% 100.0% 3. The total TIF Real Estate Ta~ Increment ("Tax Increment"), for this example, is . . . . . . . . . . . . . . . . . . . . . . . . $1,000,000 x 9.0919'% _ $90,919 B. Surplus Amounts: 1. In this example, the Ciry would declare surplus funds (by ordinance) in the amount of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $90,919 x 20% _ $18,184 2. The Ciry would send ~18,183 to the Counn~ Collector who would then distribute pro-rata shares to the affected ta~ng districts as follows: a) Fulton Counn~ . . . . . . . . . . . . . . . . . . . $18,184 x 14.7% _ $2,673 b) Canton Township . . . . . . . . . . . . . . . . . . $18,184 x 2.7~% _ $491 c) Canton Township Road & Bridge . . . . . $18,184 x 3.6% _ $654 d) Spoon River College #534 . . . . . . . . . . . $18,184 x 6.3%= $1,146 e) Canton Union School District #66 $18,184 x 43.2%= $7,855 ~ Fulton Countt~ Ambulance . . . . . . . . . . . $18,184 x 1.4% _ $255 g) Canton Park District . . . . . . . . . . . . . . . . $18,184 x 8.7% _ $1,582 h) Ciry of Canton . . . . . . . . . . . . . . . . . . . . $18,184 x 19.4% _ $3,528 TOTAL $18,184 -10- 3. The School District's pro-rata share of the surplus funds in this example would be $7,855 4. The School District's pro-rata share of surplus funds as a percentage of the tota] real estate tax increment is . . . . . . . . . . . . $7,855/$90,919 = 8.6% II. Reimbursement for Capital Costs as herein provided in Paragraph 3 of this Agreement. A. Assumptions: 1. Pursuant to Paragraph 3 of this Agreement, the School District is to receive a total cumulative annual sum equal to ten percent (10.0%) of the real estate tax increment generated annually within the Canton 2- Rt.9/Chestnut St. TIF District. B. Reimbursement for Capital Costs Calculation. 1. The School District's pro-rata share of the surplus funds as determined above for this example is .........$7,855 or 8.6% of the Tax Increment 2. In this example, the Ciry would therefore reimburse to the School District, in addition to the School District's pro-rata share of the surplus funds, the following amount for capital costs as provided in Paragraph 3 of this Agreement . . . . . . . . . . . . . . . . . . . . . . . ($)0,919 x 10%) - $7,855 = $1,237 III. Total Cumulative Annual Sum Payable to School District (this example only). A. School District's pro-rata share of surplus funds . . . . . . . . . . . . . . . . . . . . $7,855 (Use of these funds is not limited to capital costs) B. Reimbursement for Capital Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . + $1,237 (Use of these funds are to be applied only to capital costs relating to ~ capital and equipment expenditures for an~~ school district faciliry and ~ educational expenses incurred within the Cit~~ of Canton.) C. Total Cumulative Annual Reimbursement to School District is $9,092 ($9,092 is 10% of $90,919) -11- EXAMPLE CALCULATION: PROPOSED INTERGOVERNMENTAL AGREEMENT BETWEEN CITY OF CANTON & CANTON UNION SD #66 Assume Incremental EAV = $1,000,000 Assume Total Real Estate Tax Rate = 9.09190% Fig. 1- Proportionate Shares of Surplus Funds Total Real Estate Tax Increment = $90,919 City of Canton to Declare 20% of Annual Real Estate Tax Increment re: Canton Rt.9/Chestnut Street FultonCounty TIF District as "Surplus Funds" _ $18,184 _Ambulance,5zss Spoon River College #534, TABLE 1. Si,iae Canton TWP Road Canton Park Proportionate & Bridge, Sesa District, Sl,ssz Tax Year 2010 Payable 2011 Real Estate Share of Share of TIF CantonTOwnship, rf ~ Taxing District: Tax Rate R.E. Tax Bill Surplus Funds 5491 Fulton County, City of Canton, Fulton County 1.33360% 14.7% $2,673 $z,673 Sa,szs Canton Township 0.24890% 2.7% $491 Canton TWP Road & Bridge 0.33120% 3.6% $654 Spoon River College #534 0.57230% 6.3% $1,146 Canton Union SD #66 3.93100% 43.2% $7,855 Fulton County Ambulance 0.12290% 1.4% $255 Fig. 2- Canton Union School Dist. No. 66, Canton Park District 0.79060% 8.7% $1,582 City of Canton 1.76140% 19.4% $3,5zs Sources of TIF District Reimbursement Total: 9.09190% 100.0% $18,184 TABLE 2. Summary for Canton Union School District #66 Reim ursement per IGA is surplusFunds, 10% of Total Annual RETI 57,s55,86% Received by City: $9,092 Total Reimbursement. ~ Capital Costs, (Less) School Distr'rct's Share of ~ Sl,zs~, ia% Surplus Fundr. $7,$55 Nat iimited to capital costs. ~ J e Halance ~~s b~ R~mbt~~~ ~c~ C~r, ~ ~ ~ s Sch~ [~t~tet ~ Ga~ri~ai.~e~ts. ` x~ . ~ ~ ~ ~ ~ . ~ ~ _ . ~ Prepared by The Economic Development Group, Ltd., Bloomington, Illinois Surplus Calculation_example 102011.x1sx 10/20/2011