Audit of the City of Chicago's Compliance with the Tax Increment Financing (TIF) Sunshine Ordinance and TIF Surplus Executive Order

The Office of Inspector General (OIG) conducted an audit of the City’s compliance with the Tax Increment Financing (TIF) Sunshine Ordinance and the TIF Surplus Executive Order. The audit had two objectives: 1. To determine if the Department of Planning and Development (DPD) is meeting the requirements of the TIF Sunshine Ordinance, Municipal Code of Chicago § 2-45-155, which requires the City to make certain data related to TIF projects and districts publicly available. 2. To determine if DPD and the Office of Budget and Management (OBM) comply with Executive Order 2013-3, Declaration of TIF Surplus Funds in TIF Eligible Areas, which requires the City to annually declare at least 25% of the City’s unallocated TIF balance as “surplus” to be remitted to taxing bodies affected by TIF. OIG concluded that the City does not provide the public with all of the data required by the TIF Sunshine Ordinance. We also concluded that the City declared a TIF surplus in accordance with the Executive Order in 2020, but limited the amount to be considered for surplus declaration. This limitation was a result of recording errors, a lack of consistency in reviewing projects, and the allowance of stagnant unspent funds.