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Feb 14

Sherman TIF Districts & the money that is spent


Edited: Feb 14

Feb 14Edited: 3 days ago


The Village of Sherman receives over $1 million dollars in TIF funds each year. TIF funds come from local property taxes that are redirected away from all the other taxing bodies for an initial period of 23 years into a special fund to be used for improvements within the TIF.

  • The Sherman Original TIF was first established in 1986 and extended in 2009 for an additional twelve years.

  • The Route 66 and South Rail Point TIF were established in 1998 for an initial 23 years.

Mayor Clatfelter doesn't consider TIF funds as property taxes, but TIF funds are property taxes put into a special fund for the Village to use within the TIF area.




In 2009, the Original TIF was extended for twelve years after the initial 23 years and is set to expire in 2021 (payable in 2022) along with the other two TIF districts established in 1998.


When the Original TIF was extended, the Village agreed to send half of the Original TIF revenue back to the County for the extended twelve years to be redistributed back to the other Taxing Bodies. The remaining TIF funds the Village keeps every year during the twelve year extension has been used to purchase the land for the new Municipal Park and all of the related construction cost.






As of November 2018, the Original TIF had received $1,082,804.78 in property taxes. In November 2018, the Village made a bond principal payment in the amount of $348,780 on debt incurred for the Original TIF.



Then in December 2018, the Village sent back 50% of the property tax revenue to the County in the amount of $541,402.39 to be redistributed back to the other taxing bodies. Leaving an ending balance in the Original TIF $717,879.16.




Fiscal Year 2018 Audit - TIF Incentive Agreements




When the remaining Original TIF funds the Village keeps could not keep up with the related park construction cost, the Village approved a five year agreement with Hickory Point Bank and Trust in March of 2016 against future TIF revenues at a fixed rate of 2.35% (similar to a line of credit). This is in addition to the $1,650,000 TIF Bonds issued in 2004 and the $2,000,000 TIF Bonds that were issued 2011 for the Rt 66 TIF District.



April 30, 2016, the Original TIF fund ending balance was negative ($72,770.33).



In December 2016, the Village borrowed $600,000 from Hickory Point Bank and Trust for the TIF fund.




The Original TIF fund monthly ending balances continued to run in the negative more often than in the positive until an additional $1 million dollars was borrowed from Hickory Point Bank and Trust in April 2017, resulting in an ending balance of $780,826.40 April 30, 2017.






April 30, 2018, the Original TIF fund ending balance was $795,334.53. In December 2018, the Original TIF fund ending balance was $717,879.16.


To see the monthly Village Treasurer’s reports beginning with 5/31/2016 you can now view them online at: https://www.shermanil.org/Government/village-administration/warrants-and-treasurer-reports/

For more information about IL TIF's: http://www.illinois-tif.com/about-tif/



The information below shows the annual beginning balance, revenue, expenditures and ending balance as of April 30th for each year 2014-2019 for each of the three TIF Districts, along with the total of the three TIF Districts in the far right column.


You can see that the Original TIF 1 has the greatest revenue and expenditures and has gone from $2,001,773.41 April 30, 2014 to ($72,770.33) April 30, 2016 to the $700,000 range in 2017 and 2019 after the Village borrowed $1.6 million dollars in Fiscal year 2017 to get the TIF fund out of the negative.




Fiscal Year 2017 Audit

NOTE: $1,600,000 was borrowed to get TIF 1 out of the negative.



Fiscal Year 2018 Audit

NOTE: 2018 Audit TIF Balances below Fund Balance at the beginning of the year is the same as the above 4/30/2018 Treasurer's report at the End of the Year.




Sherman TIF map



Feb 25Edited: 9 hours ago

Route 66 TIF 2

Historical property tax receipts 2018-2003 along with the amount that was redirected to the Rt 66 TIF Fund and the Sherman SSA for 2010-2014 are below. This information was obtained from the Sangamon County website. https://tax.co.sangamon.il.us/SangamonCountyWeb/app/searchByParcelNumber.action


You can see that in years 2017 and 2016 the combined property taxes within the Rt 66 TIF totaled over $300,000 and 99.84% of that was redirected into the Rt 66 TIF fund. In addition, in years 2012-2014 the combined property taxes within the Rt 66 TIF totaled over $300,000. However, the Sherman SSA was in affect at that time which redirected a portion of the combined property taxes into that fund. Reducing the percentage going into the Rt 66 TIF fund to 75%-78%.





Mar 8Edited: 3 days ago


During the March 5, 2019 Village Board meeting, Mayor Clatfelter and Trustee Schultz basically said the Rt 66 TIF has not been successful and there are insufficient property tax revenues to make the bond payment; therefore, the Village has no obligation to pay the bonds without sufficient property tax revenues, so UCB Bank who holds the bonds is the loser. WOW who wants to invest in Sherman now!!


Trustee Schultz stated “I tried to get that language not included in the audit, because the Village is not obligated to pay those bonds back. The Village’s only obligation is to collect the incremental real estate property taxes from that specific project. If that project generates sufficient incremental taxes, then the Village is obligated to collect it and pay the bond holder per the agreement. If the taxes are insufficient then there is no obligation of the Village. Trustee Schultz also stated the wording is misleading because there were not sufficient incremental taxes to pay the bond.


Village Treasurer, Jeremy Stuenkel, CPA stated: "To reiterate from last night’s proceedings, the Village pledged certain revenues (for these particular revenue bonds the Village pledged incremental property taxes and certain sales taxes, the sales tax portion expired in 2016, collected within the boundaries of the Route 66 TIF) to the punctual payment of the interest and principal on the bonds.  During FY2017 and FY2018 (and FY2019 for that matter), the property tax revenues received from the Route 66 TIF district were not sufficient to pay the full amount of the principal and interest payments that were due.  Therefore, the Village did not strictly comply with the bond payment schedule that was outlined in the bond agreement as the full principal and interest payments were not made.  However, the Village did comply with the bond requirement to remit the pledged funds that were collected during the fiscal year.  The Village is not required under the bond agreement to pay any funds other than those revenues that were pledged to the payment of the bonds.


At the end of FY2018 the Village had approximately $2.3 million in principal outstanding, approximately $0.5 million on the TIF payable to the developer, as well as accrued interest all related to the TIF Revenue bonds.  All of this debt is recorded as outstanding debt on the Village’s financial statements.  It is important to understand that if the Village never collects another cent in property tax revenues from within the Route 66 TIF district, the Village would not be responsible for paying off one penny on the aforementioned debt.  The bank would be responsible for collecting any unpaid amounts from the developer, and if unable to do so, the bank would most likely write off the bond.


Banks are not in business to lose money!!




The December 31, 2017 Treasurer’s report, indicates the Rt 66 TIF had an ending balance of $519,754.31. This was prior to the end of FY2018 which is April 30, 2018.




The January 2018, Treasurers report indicates a payment in the amount of $421,776.34 was made to UCB Bank for TIF Bond Principal.


Therefore, why does page 30 of the FY2018 Audit state the Village had an unpaid principal and interest payment of $325,196 as of April 30, 2018 that was to be paid during fiscal year 2017 and 2018 in accordance with the debt service requirements? https://www.shermanil.org/Government/village-administration/budget-audits/

Mar 9Edited: Oct 17

The December 31, 2018 Treasurer’s report, indicates the Rt 66 TIF had an ending balance of $412,747.45. This is prior to the end of FY2019 which is April 30, 2019.




The January 2019, Treasurers report indicates a payment in the amount of $313,003.85 was made to UCB Bank for TIF Bond Principal.





Mar 19Edited: Mar 19


You can clearly see from the historical Assessment History below from the Sangamon County website that County Markets assessments have only increased since 2012.



May 28Edited: 6 hours ago

Original TIF Money Returned to Taxing Bodies each year after 50% is declared as surplus per the TIF 12 Year Extension Agreement with the other Taxing Bodies.











*Information above obtained from the Sangamon County Treasurers Office.






Jun 2Edited: Jun 9




The $25,000 TIF funds is in addition to the TIF funding the Sherman Fire Department receives from the 50% surplus.


In addition to the property tax revenue the Sherman Fire Department levies against homeowners living within the Sherman Fire Protection District, they typically ask the Sherman Village Board for additional funding from the TIF fund for additional equipment purchases. This is in addition to the TIF revenue they have receive each year since the 2009 extension of the Original TIF, in which the Sherman Village Board declares 50% of the Original TIF revenue as surplus and sends that money back to the County to be disbursed to all the other taxing bodies. https://www.shermanforum.com/main-forum-page/city-spending-taxes/sherman-tif-districts-the-money-that-is-spent

Fiscal Year Special Amount Requested/Received from the Sherman Village Board

2007 $ 50,000

2008 $ 50,000

2009 $ 50,000

2010 $100,000

2011 $0

2012 $ 56,000

2013 $0

2014 $0

2015 $ 28,000

2016 $ 12,980

2017 $ 12,400

2018 $0

2019 $ 25,000 disbursed August 2018

2020 $ 25,000 Requested & Approved May 21, 2019

TOTAL $409,380

Jun 14

It is a shame that Sherman Fire Department cannot operate within its means.

3 days ago


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