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Home My WebLink About2023 CDADate Adopted by the CDA: 3/26/24 Date Filed with City of Chubbuck City Clerk: 3/27/24 Date Filed with State Controller: 3/27/24 AGENCY CHARTER AND STATUTORY COMPLIANCE The Chubbuck Development Authority (CDA) was officially created on April 14, 1992, by Resolution No. 4-92 of the Chubbuck City Council. Its purpose is to eliminate slum and blight and deteriorated or deteriorating conditions within the City of Chubbuck. This report is in accordance with Idaho Code Section 50-2006(c) which states that: An agency authorized to transact business and exercise powers under this chapter shall file, with the local governing body, on or before March 31 of each year a report of its activities for the preceding calendar year, which report shall include a complete financial statement setting forth its assets, liabilities, income and operating expense as of the end of such calendar year. The agency shall be required to hold a public meeting to report these findings and take comments from the public. At the time of filing the report, the agency shall publish in a newspaper of general circulation in the community a notice to the effect that such report has been filed with the municipality and that the report is available for inspection during business hours in the office of the city clerk or county recorder and in the office of the agency. By virtue of certain amendments to the Idaho Urban Renewal Law adopted in 2002, the fiscal year of an urban renewal agency has been established as October 1 through September 30. Consequently, any formal financial statement is limited to a report through the end of the CDA's fiscal year. Under the Idaho Urban Renewal Law, Chapter 20, Title 50, Idaho Code, an urban renewal agency is required to file with the local governing body and the Idaho State Controller, on or before March 31 of each year, a report of its activities for the preceding calendar year, which shall include certain financial data and audit reports as set forth in Idaho Code Sections 67-1075 and 67-1076. ACKNOWLEGEMENTS To fulfill its purpose the CDA works with many other agencies, state and local elected officials, real estate developers, jurisdictions including the County, City of Chubbuck, and the state and private and nonprofit organizations and is grateful for the support and efforts of each. The CDA is grateful for the support from the taxing districts affected by the CDA's urban renewal areas as all seek to preserve the tax base in these areas in attempt to minimize property tax rates for the community as a whole. Finally, and most of all, the CDA appreciates those businesses and property owners who strive to grow their businesses, maintain their properties, and promote development in the City of Chubbuck since without them, efforts of the Chubbuck Development Authority would be greatly minimized. ORGANIZATION The Chubbuck Development Authority consists of seven (7) commissioner seats, with seats being filled with appointments to varying terms by the Chubbuck City Council. Commissioners and Staff are: Name Term Expiration Date Annette Baumeister, Chairwoman Rick Keller, Vice -Chair Jeff Hough Dan Heiner Krystal Denney Vacant Vacant Also serving with the Authority are: ❑ Devin Hillam, Administrator/Executive Director ❑ TJ Budge, Racine Olson, CDA Legal Counsel ❑ Jordan & Company, Bookkeeper ❑ Joey Bowers, Clerk & Secretary RESOLUTIONS October 2024 October 2026 October 2026 October 2024 October 2027 The Chubbuck Development Authority passed the following resolutions in Calendar Year 2021: Resolution 2023-01 passed on July 18, 2023 providing notice of intent to terminate the Downtown Improvement Project urban renewal plan (a.k.a. the "1992 Plan") 2 Resolution 2023-02 passed on July 18, 2023 adopting the fiscal year 2024 budget. Resolution 2022-03 passed on September 19, 2023 adopting the fiscal year supplemental 2023 budget. Resolution 2022-03 passed on September 19, 2023 adopting the fiscal year supplemental termination 2023 budget for the Downtown Improvement Project urban renewal plan (a.k.a. the "1992 Plan"). FINANCIAL INFORMATION PER I.C. 67-1072(2)(B)JC) In accordance with Idaho Code section 67-1076(2)(b),(c), the following are included as attachments to this report: 1. FY2023 Supplemental Budget 2. FY2022 Audit URBAN RENEWAL DISTRICTS Chubbuck Urban Renewal District (est. 1992) The Authority's Urban Renewal Plan was adopted by the Chubbuck City Council via Ordinance Number 385 on October 27, 1992. In May of 2021, the CDA and City Council executed an agreement for the administration of the Plan until it sunset at the end of 2023. The agreement established roles for each entity and approved and possible projects. The First Amendment to the plan was passed by City Council as Ordinance 758 on August 3rd, 2016. The effect of this amendment was to remove certain parcels from the plan to allow those areas to be included in the Pine Ridge Plan. In calendar year 2023, CDA received $2,303,682.73 in property tax increment revenues, interest, and contract revenue. 2023 was the final year that monies were collected through this district and at the end of 2023, the district was officially closed after having benefited the Chubbuck area for 30 years. The Chubbuck Development Authority recognizes that a plan such as this one will never exist again under the current statutory framework and is proud with what the unique, legacy district was able to redevelop and develop inside the district boundaries over its history and along with private partners and public partners who helped it succeed, including the City of Chubbuck, Bannock County, and State Tax Commission. 2023 Urban Renewal Projects 3 Projects and payments undertaken in calendar year 2023 projects by the Chubbuck Development Authority Board are follows. The CDA paid $196,913.89 towards its obligation for the repayment of the Redman Canal relocation. 2. The CDA paid $48,183.77 for streetscape infrastructure costs in the Chubbuck Village new downtown area. 3. The CDA paid approximately $76,899.70 towards materials costs for a calendar year 2024 project for pedestrian safety crossing. 4. The CDA paid approximately $2,570.19 towards costs associated with the Chubbuck-Philbin intersection improvement project that resulted in a high- volume roundabout that will serve city and county residents and visitors for decades to come. Although currently constructed as a single lane improvement, the intersection's curbs and sidewalks were placed so that another lane can be added when warranted in the future without unnecessary costs to relocated concrete improvements. 5. The CDA paid $649,955.67 towards costs associated with the New Day Parkway (former "Siphon Road") expansion project. The New Day Parkway project widened the 2 -lane road into a 4 -lane road with turn lanes at intersections, landscaped medians, and landscaped shoulders with a separated multi -use pathway on the south side. Some of the costs in the 2023 calendar year were towards the railroad crossing design and final construction. 6. As part of the termination of the district, the CDA returned $914,913.89 to the County Treasurer. These were surplus, non -obligated funds of the CDA and the Properties in the District Owned by the CDA In 2018-2019, the CDA purchased several properties deemed blighted and in need of redevelopment under the urban renewal plan to redevelop the properties in the newly identified downtown or city center of the city of Chubbuck. The CDA intends to dispose of the properties within 3 years of completing rehabilitation in accordance with the Idaho Urban Renewal Law. As planned, in Spring 2022 the City adopted a downtown plan and associated zoning code for the downtown area, named Chubbuck Village, and the CDA commenced with the disposal process for all properties as required by Idaho law. No complete responses were received, however, and the CDA decided to wait until calendar year 2023 to attempt again M to dispose of the properties with adjusted response standards in hopes of gaining more developer interest. In 2023, the CDA commenced the statutory disposal process for its properties. Multiple responses were provided to the request for proposals and the CDA selected preferred developers with whom to proceed. As part of the disposition process, the CDA deeded 2 properties adjacent to City Hall to the City of Chubbuck to be used as parks/open space; in 2023, the City constructed improvements on the adjacent property west of City Hall with picnic tables, benches, and cornhole pedestals. Properties owned by the CDA at the end of 2023 include: 339 E Chubbuck Rd — In 2023, an Agreement to Negotiate Exclusively and a Development Disposition Agreement were signed with the preferred developer, and a Fair Reuse Appraisal was obtained. Although not part of the calendar year reporting, it is important to communicate that on January 7, 2024, a fire destroyed the property's building and the CDA has determined that it must commence anew with the disposal process outlined by Idaho Code. Chubbuck City Hall Subdivision Lots (unaddressed): Block 1 Lot 1 - In 2023, an Agreement to Negotiate Exclusively was signed with the preferred developer and the CDA contracted to have a Fair Reuse Appraisal completed. At 12/31/23, the CDA had not received a copy of the appraisal. 211 E Linden, 208 Evans, 206 Evans, 162 Evans, 152 Evans, 140 Evans ■ In 2023, an Agreement to Negotiate Exclusively was signed with the preferred developer and the CDA contracted to have a Fair Reuse Appraisal completed, which was received on 12/20/23. The CDA is currently in the process of negotiating a Development & Disposition Agreement with preferred developer. Future Needs/Plans Moving into calendar year 2024, the CDA intends to dispose of all of its properties pursuant to Idaho Code, and to finish the outstanding, obligated projects under the 1992 Downtown Improvement Plan District; those projects include wrapping up the New Day Parkway project and the installation of numerous Rectangular Rapid Flash Beacons (RRFBs) through the City. If excess monies remain once the outstanding, obligated projects are completed, the CDA will remit all monies to the County Treasurer for disbursement to the taxing districts. 5 With the 1992 Downtown Improvement Plan District closed, once outstanding projects are complete, the Agency's role turns largely into an administrative one for the existing districts. Pine Ridge Urban Renewal Plan (est. 2016) The Pine Ridge Urban Renewal Plan was adopted by the Chubbuck City Council via Ordinance Number 759 on August 3, 2016. The future revenue and expenditures of the Pine Ridge Urban Renewal Plan will be administered by CDA under an owner participation agreement and annual activities are included in this report. 2016 to 2036 Projects; Revenue Allocation Bond (2020) The approved Pine Ridge plan establishes what improvement projects are eligible for CDA participation. The Plan also predicts tax increment revenue generated by Plan improvements. Under the 2016 agreement, CDA and the City of Chubbuck agreed to reimburse Pine Ridge ownership 100% of increment revenue less administrative cost which shall not exceed $15,000. In October 2020 however, the CDA closed on a revenue allocation bond in the amount of $1,940,000 at a discount of $50,000 at the request of the Pine Ridge Mall Developer. The bond carries an interest rate of 6.750% and a maturity date of November 1, 2037. The bond is being used to provide monies to reimburse the developer for already completed eligible costs and thereby provide more capital for further investment in the development in the Pine Ridge Mall urban renewal area. Whereas prior to the bond sale, 100% of the increment revenues less administrative costs were owed to the developer for eligible improvements, now 100% of the increment excluding the CDA's administrative costs is dedicated to the bond commitment until repaid. Due to the additional administrative staff time with the bond proceeds, the developer agreed to a $20,000 administrative fee in 2020 and the $20,000 administrative fee was transferred to the CDA General Fund in 2022. The Pine Ridge plan generated $253,053.93 in tax increment revenues and interest earnings during calendar year 2023. There were no significant developments or construction within the district in calendar year 2023, with the increased interest rates likely playing a large role in the lack of continued redevelopment in the plan area. Future Needs/Plans Moving into 2023, the CDA will continue to pay its bond obligations as required. The CDA is optimistic about continued development in this district and looks forward to the year to come. 6 Northside Crossing Urban Renewal Plan (est. 2020) The Northside Crossing Urban Renewal Plan was adopted by the Chubbuck City Council via Ordinance Number 819 on November 4, 2020 and was accepted by the State Tax Commission on December 7, 2020. The future revenue and expenditures of the Northside Crossing Urban Renewal Plan will be administered by CDA under the terms of the Plan and through further owner participation agreements. In 2021, the CDA and developer executed an owner participation agreement establishing qualified reimbursement terms and processes. Several improvements that were approved as part of the Plan have already been completed and development progress in the district is occurring rapidly, although it was less rapid in 2023 than in previous years, likely due to increased interest rates. In calendar year 2023, the CDA received approximately $164,045.06 in property tax increment revenue and the CDA reimbursed the Developer in the amount of $237,143.05 in accordance with the executed Owner Participation Agreement between the CDA and the Developer. Future Needs/Plans Moving into 2023, the CDA will continue to review and approve qualified expense reimbursement requests in accordance with the Owner Participation Agreement. The CDA is optimistic about continued development in this district and looks forward to the year to come. Harvest Sarinas Urban Renewal Plan (est. 2021 The Harvest Springs Urban Renewal Plan was adopted by the Chubbuck City Council via Ordinance Number 840 on November 3, 2021 and was accepted by the State Tax Commission on November 18, 2021. The future revenue and expenditures of the Harvest Springs Urban Renewal Plan will be administered by CDA under the terms of the Plan and through further owner participation agreements. In 2022, an owner participation agreement was formalized to agree to qualified reimbursement terms with the Developer. Several improvements that were approved as part of the Plan have already been completed and development progress in the district is occurring rapidly with some certificates of occupancy having been issued. In calendar year 2022 for Tax Year 2021, the CDA received $16,498.47 in property tax increment revenue and the CDA did not provide any reimbursement for owner participation agreements. 7 CONCLUSION The Chubbuck Development authority (CDA) continues to fulfill its charter and through its projects in the urban renewal districts has successful thus far in eliminating slum and blight and is optimistic that this ability will carry on into the future for decades to come to enhance the properties in the city of Chubbuck for the benefit of the area's businesses, residents, and visitors. The CDA is in a fiscally sound position to continue improving the area in coordination with project developers and its government partners. Attachment A: Fiscal Year 2023 Budget RESOLUTION NO. 2022-3 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF THE CITY OF CHUBBUCK, IDAHO (A/K/A CHUBBUCK DEVELOPMENT AUTHORITY), TO BE TERMED THE "ANNUAL APPROPRIATION RESOLUTION," APPROPRIATING SUMS OF MONEY AUTHORIZED BY LAW AND DEEMED NECESSARY TO DEFRAY ALL EXPENSES AND LIABILITY OF AGENCY FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2022, AND ENDING SEPTEMBER 30,2023; DIRECTING THE CHAIR, VICE -CHAIR, OR EXECUTIVE DIRECTOR TO SUBMIT THE RESOLUTION AND BUDGET TO THE CITY OF CHUBBUCK AND ANY OTHER ENTITY ENTITLED TO A COPY THEREOF; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Urban Renewal Agency of the City of Chubbuck, Idaho, also known as Chubbuck Development Authority (the "Agency") is an independent public body corporate and politic, authorized under the Idaho Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho Code, as amended (the "Law") and the Local Economic Development Act, Chapter 29, Title 50, Idaho Code, as amended (the "Act"); WHEREAS, pursuant to Idaho Code sections 50-2006(5)(d), , the Agency is required to prepare and file with the City Council an annual financial report and an annual budget for informational purposes; WHEREAS, pursuant to Idaho Code section 50-2903(5), the Agency is required to adopt and publish a budget for the next fiscal year in accordance with Idaho Code section 50-1002; WHEREAS, Agency staff prepared an annual financial report and a proposed annual budget for the fiscal year commencing October 1, 2022, and ending September 30, 2023, which was submitted to the Agency for comment on July 19, 2022; WHEREAS, the Agency published notice in accordance with requirements of Idaho Code, of a public hearing on August 16, 2022, at 5:30 p.m., in the City Council chambers, Chubbuck City Hall, 290 East Linden Ave., Chubbuck, Idaho, to invite public comment on the annual financial report and the proposed budget of the Agency, a copy of which is attached hereto as Exhibit A; WHEREAS, a public hearing was held on August 16, 2022, pursuant to Idaho Code Section 50-1002, in the City Council chambers, 290 East Linden Ave., Chubbuck, Idaho, on the Agency's annual financial report and annual budget, and considered public comment on services, expenditures, and revenues planned for Fiscal Year 2023; NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF THE CITY OF CHUBBUCK, IDAHO, AS FOLLOWS: RESOLUTION 2022-3-1 Section 1: That, to the knowledge of the Board of Commissioners of the Agency, the above statements are true and correct. Section 2: That the sums of money, or as much thereof as may be authorized by law, needed, or deemed necessary to defray all expenses and liabilities of the Agency, as set forth in the budget attached hereto as Exhibit A, are hereby appropriated for the general, special and corporate purposes and objectives of the Agency for the fiscal year commencing October 1, 2022, and ending September 30, 2023. Section 3: That this Resolution shall be in fill force and effect immediately upon its adoption and approval. PASSED AND ADOPTED by the Urban Renewal Agency of the City of Chubbuck, Idaho, on August 16, 2022. Signed by the Chair of the Board of Commissioners and attested by the Executive Director to the Board of Commissioners, on August 16, 2022. APPROVED: y 'Cir �theCommission ATTEST: By /Xl�utive Director RESOLUTION 2022-3-2 State of Idaho County of Bannock PROOF OF PUBLICATION Idaho State Journal I, Collins Crapo first being duly sworn, depose and say: That I am the e6as4wel M -,Mw -of Processing Clerk employed by Adams Publishing Group of the Rockies LLC, publishers of Idaho State Journal, a newspaper of general circulation, published 4 days, Tues -Wed -Friday and Sunday, at Pocatello, Idaho. That the notice, of which a copy is hereto attached and made a part of this affidavit, was pub- lished in said Idaho State Journal for 2, first publication having been made on 08/05/2022 last publica- tion having been made on 08/12/2022, and that the said notice was published in the regular and entire issue of said paper on the respective dates of publication, and that such notice w published in the newspaper and not in a supplement. d W / Subscribed and sworn to before me, on this 18th day of August, 202 1� BETH CROSSLEY 68167 Notary Public NOTARY PUBLIC My commission expires: r MM SS OSTATE QXPIIRES 07/28/2 8 �ttachedjurat STATE OF IDAHO ss. COUNTY OF BANNOCK On this I8th day of August, 2022 before me, the undersigned, a Notary public for said state, person- ally appeared ka%ri�3i-er Collins Crapo, known or identified to me to be the persons) whose name(s) is/are subscribed to the within instrument, and being by me first duly sworn, declared that the statements therein are true, and acknowledged to me that he/she/they executed the same, IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. BETH CROSSLEY '��'�' 68167 NOTARY PUBLIC Notary Public for APG of the Rockies STATE OF IDAHO Residing: Idaho Falls, Idaho MY COMMISSION EXPIRES 07/28/28 ` Commission expires: 262508 AD# 262508AD# LEGAL NOTICE Notice of Public Hearing Urban Renewal Agency of the City of Chubbuck, Idaho alWa Chubbuck Development Authority Proposed Budget for Fiscal Year 2023 A public hearing for consideration of the proposed Urban Renewal Agency Project budget for the fiscal year that begins October nbers, located on Au - 1, 2022st , and ends 2022, at 5 3September t mber 30. 2023 suant to ill be held in Council ouncil Char 50-2903(5) and t50--01 02.�Written onden r oral comments ab ut he proposed budget are welcome. Written comments may be submitted prior to the meeting to: Chubbuck Development Authority, c/o Devin Hillam, 290 E Linden Ave., Chubbuck, ID 83202. The Agency budget funds the programs, services, and capital projects that the Agency Board and the City Council have deter- mined to be important to meet the Agency's strategic goals as described in the adopted urban renewal plans. Agency does not levy property taxes but rather, collects increment revenues generated in accordance with the urban renewal pians. This public hearing on the proposed budget is required for formal adoption of the FY 2023 budget. The proposed expenditures and revenues for FY 2023 have been tentatively approved by the Chubbuck Urban Renewal Agency Board of Commissioners on July 19, 2022, City Hall is accessible to persons with disabilities. Estimated Revenues FY2021 FY2022 FY2023 Budgeted Budgeted Proposed Revenues Revenues Revenues Fund name Property Tax Revenue (Increment) Chubbuck Improvement Revenue Allocation Fund Pine Ridge Revenue Allocation Fund Northside Crossing Revenue Allocation Fund Harvest Springs Revenue Allocation Fund Total Property Tax Revenue Revenue Sources Other Than Property Taxes Fund Balance Carryover Total Revenues- All Sources Fund Name Former categories (unused in FY23) Admin & Prof Services Dues & Subscriptions Other Capital Outlays Chubbuck Improvement Revenue Allocation Fund Professional Services, Insurances, & Publications Owner Participation Agreements or other Agreements Debt Service Capital Improvements Administrative Expenses Fund Total Pine Ridge Revenue Allocation Fund Administrative Expenses Bond Obligations Fund Total Northside Crossing Revenue Allocation Fund Administrative Expenses & Capital Improvements Owner Participation Agreements or other Agreements Fund Total Harvest Springs Revenue Allocation Fund Administrative Expenses & Capital Improvements Owner Participation Agreements or other Agreements Fund Total Total All Expenditures Published Aug 5 and 12, 2022 (ISJ848-262508) $2,575,000 $2,980,000 $2,575,000 175,000 175,000 297,000 - 90,000 170,000 20 000 $2 750 000 $3 245 000 $3,052,020 50,000 55,000 5o,uuu 12-800000 $ 3 300000 $3 117000 Proposed Expenditures FY2021 FY2022 FY2023 Budgeted Budgeted Proposed Revenues Revenues Revenues 300,000 95;500 5,000 4,600 k K 000 3,000 2,4 000 3,196,900' - .$661200 - 376.,-879 y - - 00 1,727,921 35.000 $ 2 625 000 15,000 287000 302 000 34,000 136 000 170 000 5,000 15 000 20 000 $2,800 000 $3 300 000 $3 117000 e State of Idaho County of Bannock PROOF OF PUBLICATION Idaho State Journal I, Bam1-GaTmiTriror Collins Crapo first being duly sworn, depose and say: That I ant the Gl*ssi - A44i+a � Processing Clerk employed by Adams Publishing Group of the Rockies LLC, publishers of Idaho State Journal, a newspaper of general circulation, published 4 days, Tues -Wed -Friday and Sunday, at Pocatello, Idaho. That the notice, of which a copy is hereto attached and made a part of this affidavit, was pub- lished in said Iiiaho State Journal For 2, first publication having been made an 08/05/2022 last publica- tion having been made on 08/12/2022, and that the said notice was published in the regular and entire issue of said paper on the respective dates of publication, and that such notice was published in the newspaper and not in a supplement. Subscribed and sworn to before me, on this 18th day of August, 202 BETH CROSSLEY 68167 Notary Public NOTARY PUBLIC My commission expires: STATE OF IDAHO MY COMMISSION EXPIRES 07/28128 ttached jurat STATE OF IDAHO ss. COUNTY OF BANNOCK On this 18th day of August, 2022 before me, the undersigned, a Notary public for said state, person- ally appeared Collins Crapo, known or identified to me to be the person(s) whose names) is/are subscribed to the within instrument, and being by me first duly sworn, declared that the statements therein are true, and acknowledged to me that he/she/they executed the same, IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year in this certificate first above written. BETH CROSSLEY 68167 NOTARY PUBLIC STATE OF IDAHO MY COMMISSION EXPIRES 07/28!28 262544 Notary Public for APG of the Rockies Residing: Idaho Falls, Idaho Commission expires: ADN 262544AD4 Legal Notice of Public Hearing Urban Renewal Agency of the City of Chubbuck, Idaho a/k/a Chubbuck Development Authority Proposed Termination Budget for Chubbuck Downtown Improvement Plan District Only for Fiscal Year 2023 A public hearing for consideration of the proposed Urban Renewal Agency Project budget for the fiscal year that begins October 1, 2022, and ends September 30, 2023 will be held in Council Chambers, located at 290 E. Linden Ave, Chubbuck, Idaho, on August 16, 2022, at 5:30 p.m., pursuant to Idaho Code §§ 50-2903(5). Written or oral comments about the proposed budget are welcome. Written comments may be submitted prior to the meeting to: Chubbuck Development Authority, c/o Devin Hillam, 290 E Linden Ave., Chubbuck, ID 83202. The Agency budget funds the programs, services, and capital projects that the Agency Board and the City Council have determined to be important to meet the Agency's strategic goals as described in the adopted urban renewal plans. Agency does not levy property taxes but rather, collects increment revenues generated in accordance with the urban renewal plans. This public hearing on the proposed budget. is required for formal adoption of the FY 2023 budget. Prior year revenues and expenditures are available on the full Agency published budget proposal for FY 2023. The proposed expenditures and revenues for FY 2023 have been tenta- tively approved by the Chubbuck Urban Renewal Agency Board of Commissioners on July 19, 2022. City Hall is accessible to persons with disabilities. FY 2023 Projected Revenues Fund name Property Tax Revenue (Increment) Chubbuck Improvement Revenue Allocation Fund $ 2,575,000 Revenue Sources OtherThan Property Taxes 50,000 Fund Balance Carryover Total Revenues -All Sources $ 2, 25A00 FY2023 Proposed Expenditures Fund Name Chubbuck Improvement Revenue Allocation Fund Professional Services, Insurances, & Publications $60,000 Owner Participation Agreements or other Agreements (Knudsen & Arbor Court) 376,879 Property Insurance 3,200 Legal Publications - 2,000 Debt Service 420f1)00- 6- I'D 15.``' Capital Improvements (New Day Parkway, ... Hawthorne Rd., & others) 1,727,921 Administrative Expenses 35;00 Preliminary Estimate of Cash to be remitted to County - Fund Total Expenditures $2,625;600 Budget Note: 3 The Agency expects to pay its contraction obligations, as may be ame tember 30, 2023 and the Agency expects all expenses from any reryrai provements to be incurred and satisfied by the Agency's FY2023 budg to dispose of its properties in the district prior to the district's terminal received, to reopen the budget in accordance with Idaho Code. At this tir anticipate there will be any surplus available for remittance to the Coun tion to the taxing districts before or after September 30, 2023 Published Aug 5 and 12, 2022 (ISJ848-282544) on A is x..,1l,x3 ,R, e.4...A,.F,f Sep ency expects revenues are )ncy does not )r for distribu- f3 ,i:. .ti., 3. RESOLUTION NO. 2023-3 BY THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF THE CITY OF CHUBBUCK, IDAHO A/K/A CHUBBUCK DEVELOPMENT AUTHORITY: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEW AL AGENCY OF THE CITY OF CHUBBUCK, IDAHO A/K/A CHUBBUCK DEVELOPMENT AUTHORITY, TO BE TERMED THE "ANNUAL APPROPRIATION RESOLUTION," APPROPRIATING SUMS OF MONEY AUTHORIZED BY LAW AND DEEMED NECESSARY TO DEFRAY ALL EXPENSES AND LIABILITY OF THE URBAN RENEWAL AGENCY, FOR THE FISCAL YEAR COMMENCING OCTOBER 1, 2022, AND ENDING SEPTEMBER 30, 2023, FOR ALL GENERAL, SPECIAL AND CORPORATE PURPOSES; DIRECTING THE CHAIR, VICE -CHAIR, OR EXECUTIVE DIRECTOR TO SUBMIT THE RESOLUTION AND BUDGET TO THE CITY OF CHUBBUCK AND ANY OTHER ENTITY ENTITLED TO A COPY OF THE RESOLUTION AND BUDGET; AND PROVIDING AN EFFECTIVE DATE. THIS RESOLUTION, made on the date hereinafter set forth by the Urban Renewal Agency of the City of Chubbuck, Idaho, also known as Chubbuck Development Authority, an independent public body corporate and politic, authorized under the authority of the Idaho Urban Renewal Law of 1965, Chapter 20, Title 50, Idaho Code, as amended (hereinafter the "Law") and the Local Economic Development Act, Chapter 29, Title 50, Idaho Code, as amended (hereinafter the "Act'), a duly created and functioning urban renewal agency for Chubbuck, Idaho, hereinafter referred to as "Agency." WHEREAS, by Resolution No. 4-92, dated April 11, 1992, the City Council of the City of Chubbuck, Idaho (the "City") created an urban renewal agency, pursuant to the Law; WHEREAS, the City Council, after notice duly published, conducted a public hearing on the Urban Renewal Plan Chubbuck Downtown Improvement Project (the "1992 Plan") to redevelop a portion of the City, pursuant to the Law and the Act; WHEREAS, the City Council, in response to the public hearing on October 27, 1992, by Resolution No. 11-92, amended City Council Resolution No. 4-92 and 7-92, to reduce the geographic boundaries of the revenue allocation area, which resulted in removal of the northern parcels from the proposed revenue allocation area; WHEREAS, following said public hearing, the City Council adopted its Ordinance No. 385 on October 27, 1992, approving the 1992 Plan, and malting certain findings; RESOLUTION 2023-3-1 WHEREAS, the revenue allocation area boundaries were further administratively adjusted at the request of the Bannock County Assessor's Office by City Council Resolution No. 1-93, dated January 19, 1993, to avoid splitting parcels; WHEREAS, on or about November 23, 1998, the Agency, City, and the Bannock County Board of County Commissioners ("BOCC") and the Bannock County Assessor ("Assessor") ( collectively, the BOCC and Assessor may be referred to as "Bannock County") entered into the Intergovernmental Agreement With Respect to the Chubbuck Development Authority and its Urban Renewal Plan (the "IGA"), to address concerns generally related to the geographic size and value of the 1992 Plan revenue allocation area; WHEREAS, the parties to the IGA agreed to an informal partial deannexation from the 1992 Plan revenue allocation area by specifically listing the parcel numbers of the properties to remain within the revenue allocation area; all other parcels not listed were to be disregarded for purposes of calculating tax increment (revenue allocation). The Assessor continues to track the parcels included in the 1992 Plan revenue allocation area consistent with the terms of the IGA; WHEREAS, the boundary map and legal description of record with the State Tax Commission ("STC") were not updated to reflect the agreed upon changes in the IGA; WHEREAS, the City Council, on August 3, 2016, after notice duly published conducted a public hearing on the First Amendment to the Urban Renewal Plan Chubbuck Downtown Improvement Project (the "First Amendment"), which sought to deannex parcels from the 1992 Project Area commonly referred to as the "Old CarMike" parcels; WHEREAS, following said public hearing, the City Council adopted its Ordinance No. 758 on August 3, 2016, approving the First Amendment and making certain findings; WHEREAS, the City Council, on August 3, 2016, after notice duly published conducted a public hearing on the 2016 Pine Ridge Mall Urban Renewal Area and Improvement Plan (the "Pine Ridge Mall Plan"); WHEREAS, following said public hearing, the City Council adopted its Ordinance No. 759 on August 3, 2016, approving the Pine Ridge Mall Urban Renewal Plan and making certain findings; WHEREAS, the City Council, on November 4, 2020, after notice duly published conducted a public hearing on the Northside Crossing Urban Renewal Project; WHEREAS, following said public hearing, the City Council adopted its Ordinance No. 819 on November 4, 2020, approving the Northside Crossing Urban Renewal Project, including the urban renewal plan and revenue allocation area and making certain findings; WHEREAS, the City Council, on November 3,202 1, after notice duly published conducted a public hearing on the Harvest Springs Urban Renewal Project; RESOLUTION 2023-3-2 WHEREAS, following said public hearing, the City Council adopted its Ordinance No. 840 on November 3, 2021, approving the Harvest Springs Urban Renewal Plan and making certain findings; WHEREAS, pursuant to Idaho Code Sections 50-2006, 50-2903(5) and 50-1002, Agency Staff has prepared a budget and the Agency has tentatively approved estimated revenues and expenditures for the fiscal year commencing October 1, 2022, and ending September 30, 2023, by virtue of its action at the Agency's Board meeting of July 18, 2022; WHEREAS, the Agency published notice of a public hearing to be conducted on August 16, 2022, at 5:30 p.m., in Council Chambers, located at 290 East Linden Ave., Chubbuck, Idaho. WHEREAS, on August 16, 2022, pursuant to Idaho Code Section 50-1002, the Agency held a public hearing in Council Chambers, located at 290 East Linden Ave., Chubbuck, Idaho on the proposed budget and considered public comment, along with Board input, on services, expenditures, and revenues planned for Fiscal Year 2023 and approved the budget resolution 2022- 3; WHEREAS, pursuant to Idaho Code Section 50-2006, the Agency is required to pass a budget wherein expenditures do not exceed the budgeted amount; WHEREAS, the Agency has previously published notice of a public hearing to be conducted on September 19, 2023, at 5:30 p.m., in Council Chambers, located at 290 East Linden Ave., Chubbuck, Idaho, a copy of which notice is attached hereto and incorporated herein as Exhibit A; WHEREAS, on September 19, 2023, pursuant to Idaho Code Section 50-1002, the Agency held a public hearing in Council Chambers, located at 290 East Linden Ave., Chubbuck, Idaho on the proposed supplemental budget and considered public comment, along with Board input, on services, expenditures, and revenues planned for Fiscal Year 2023; NOW, THEREFORE, BE IT RESOLVED BY THE MEMBERS OF THE BOARD OF COMMISSIONERS OF THE URBAN RENEWAL AGENCY OF THE CITY OF CHUBBUCK, IDAHO, A/K/A CHUBBUCK DEVELOPMENT AUTHORITY, AS FOLLOWS: Section 1: That the above statements are true and correct. Section 2: That the sums of money, or as much thereof as may be authorized by law, needed, or deemed necessary to defray all expenses and liabilities of the Agency, as set forth in Exhibit A, which is annexed hereto and by reference made a part of this Resolution, reflecting no changes from the proposed FY 2023 Budget which was published on September 5, and September 12, 2023, and the same are hereby appropriated for the general, special and corporate RESOLUTION 2023-3-3 purposes and objectives of the Agency for the fiscal year commencing October 1, 2022, and ending September 30, 2023. Section 3: That the Chairman, Vice -Chairman or Executive Director shall submit a copy of this Resolution and Budget to the City of Chubbuck and provide a copy of this Resolution to any other person or entity entitled to a copy of the Resolution and Budget. Section 4: That this Resolution shall be in full force and effect immediately upon its adoption and approval. PASSED AND ADOPTED by the Urban Renewal Agency of the City of Chubbuck, Idaho, on September 19, 2023. Signed by the Chair of the Board of Commissioners and attested by the Executive Director to the Board of Commissioners, on September 19, 2023. APPROVED: Chair of the Commission ATTEST: By xecutive Director RESOLUTION 2023-3-4 AD# 413128AD8 LEGAL NOTICE Notice of Public Hearing Urban Renewal Agency of the City of Chubbuck, Idaho a/k/a Chubbuck Development Authority Proposed Supplemental Budget for Fiscal Year 2023 A public hearing for consideration of the proposed Supplemental Urban Renewal Agency budget for the fiscal year that begins Oc- tober 1, 2022, and ends September 30, 2023 will be held In Council Chambers, located at 290 E. Linden Ave, Chubbuck, Idaho, on September 19, 2023, at 5:30 p.m., pursuant to Idaho Code §§ 50-2006(d), 50-2903(5) and 50.1002. Written or oral comments about the proposed budget are welcome. Written comments may be submitted prior to the meeting to: Chubbuck Development Authority, c/o Devin HOlam, 290 E Linden Ave., Chubbuck, ID 83202. The Agency budget funds the programs, services, and capital proacts that the Agency Board and the City Council have deter- mined to be Important to meet the Agency's strategic goals as descrl ed in the adopted urban renewal plans. Agency does not levy property taxes but rather, collects Increment revenues generated In accordance with the urban renewal plans. This public hearing on the proposed budget is required for formal adoptlon of the FY 2023 Supplemental budget. City Hall is accessible to persons with disabilities. Admin & Prof Services 300,000 95,500 - 38,400 Estimated Revenues 4,600 FY 2021 FY 2022 FY 2023 FY 2023 Proposed - Budgeted Budgeted Budgeted Supplemental Fund Name Revenues Revenues Revenues Revenues Property Tax Revenue Revenue Allocation Fund (Increment) Professional Services, Chubbuck Improvement Insurances, & Publications - - $ 65,200 Revenue Allocation Fund $2,575,000 $2,980,000 $ 2,450,000 Pine Ridge Revenue Allocation Agreements - - Fund 175,000 175,000 297,000 270,000 Northside Crossing Revenue Capital Improvements - - 1,727,921 Allocation Fund - 90,000 170,000 170,000 Harvest Springs Revenue Allocation Fund 20.000 20,000 Total Property Tax Revenue $2.750.000 $3.245.000 $3.062A00 $2,910.000 Revenue Sources Other Than Property Taxes 50,000 55,000 55,000 40,000 Fund Balance Carryover 225.450 Total Revenues- All Sources $ 2.800.000 $ 3300.00Q $3 117000 $3,175,450 Proposed E edit re FY 2021 FY 2022 FY 2023 FY 2023 Proposed Budgeted Budgeted Budgeted Supplemental Fund Name Expenditures Expenditures Ex enditures Expenditures General Administration Admin & Prof Services 300,000 95,500 - 38,400 Dues & Subscriptions 5,000 4,600 - 4,600 Other 3,000 3,000 - - CapilalOutlays 2,492,000 31196,900 - - Fund Total $2,800,000 $3299 50 $43,000 Chubbuck Improvement Revenue Allocation Fund Professional Services, Insurances, & Publications - - $ 65,200 $ 44,237 Owner Participation Agreements or other Agreements - - - 376,879 448,213 Debt Service - - 420,000 Capital Improvements - - 1,727,921 2,100,000 Administrative Expenses 35.000 80.000 _. Fund Total $2,625,090 $2.672.450 Pine Ridge Revenue Allocation Fund Agency Administrative Expenses - - 15,000 15,000 Bond Obligations & Administration 287,000 255000 _ Fund Total 302,000 27 00 Northside Crossing Revenue Allocation Fund Administrative Expenses & Capital Improvements - - 34,000 49,600 Owner Participation Agreements or other Agreements 136.000 120.400 Fund Total $170,000 $170,000 Harvest Springs Revenue Allocation Fund Administrative Expenses & Capital Improvements - - 51000 $5,000 Owner Participation Agreements or other Agreements 15 000 $15 000 Fund Total - - 20,000 .$20,000 Attachment B: Fiscal Year 2022 Audit 10 CHUBBUCI( The urban renewal agency in the City of Chubbuck, Idaho March 16, 2023 Deaton & Company, Chartered 215 North 9t", Suite A Pocatello, ID 83021 Located at Chubbuck City Hall 290 E. Linden Ave. Chubbuck, ID 83202 208-237-2400 This representation letter is provided in connection with your audit(s) of the financial statements of Chubbuck Development Authority, which comprise the respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information as of September 30, 2022, and the respective changes in financial position and, where applicable, cash flows for the year then ended, and the related notes to the financial statements, for the purpose of expressing opinions as to whether the financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. An omission or misstatement that is monetarily small in amount could be considered material as a result of qualitative factors. We confirm, to the best of our knowledge and belief, as of March 16, 2023, the following representations made to you during your audit. Financial Statements 1) We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated October 10, 2022, including our responsibility for the preparation and fair presentation of the financial statements and for preparation of the supplementary information in accordance with the applicable criteria. 2) The financial statements referred to above are fairly presented in conformity with U.S. GAAP and include all properly classified funds and other financial information of the primary government and all component units required by generally accepted accounting principles to be included in the financial reporting entity. 3) We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 4) We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud. 5) Significant assumptions we used in making accounting estimates are reasonable. PjAdministration�ChubbuckDevelopmentAuthority�Audited Financial Statements �2022 Audited Financials�3.15.23 Management Representation Letter Audit.docx 6) Related party relationships and transactions, including revenues, expenditures/expenses, loans, transfers, leasing arrangements, and guarantees, and amounts receivable from or payable to related parties have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP. 7) All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. No events, including instances of noncompliance, have occurred subsequent to the balance sheet date and through the date of this letter that would require adjustment to or disclosure in the aforementioned financial statements or in the schedule of findings and questioned costs. 8) We agree with and have recorded all proposed adjusting entries. 9) The effects of all known actual or possible litigation, claims, and assessments have been accounted for and disclosed in accordance with U.S. GAAP. 10) Guarantees, whether written or oral, under which the Authority is contingently liable, if any, have been properly recorded or disclosed. Information Provided 11) We have provided you with: a) Access to all information, of which we are aware, that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, and other matters and all audit or relevant monitoring reports, if any, received from funding sources. b) Additional information that you have requested from us for the purpose of the audit. c) Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. d) Minutes of the meetings of Authority's Board of Commissioners or summaries of actions of recent meetings for which minutes have not yet been prepared. 12) All material transactions have been recorded in the accounting records and are reflected in the financial statements and the schedule of expenditures of federal awards. 13) We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. 14) We have no knowledge of any fraud or suspected fraud that affects the entity and involves: 1) Management, 2) Employees who have significant roles in internal control, or 3) Others where the fraud could have a material effect on the financial statements. 15) We have no knowledge of any allegations of fraud or suspected fraud affecting the entity's financial statements communicated by employees, former employees, regulators, or others. 16) We have no knowledge of instances of noncompliance or suspected noncompliance with provisions of laws, regulations, contracts, or grant agreements, or abuse, whose effects should be considered when preparing financial statements. 17) We have disclosed to you all known actual or possible litigation, claims, and assessments whose effects should be considered when preparing the financial statements. 18) We have disclosed to you the identity of the entity's related parties and all the related party relationships and transactions of which we are aware. Government—specific 19) We have made available to you all financial records and related data and all audit or relevant monitoring reports, if any, received from funding sources. PjAdministration�Chubbuck Development Authority�Audited Financial Statements�2022Audited Financials�3.15.23 Management Representation Letter Audit.docx 20) There have been no communications from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices. 21) We have identified to you any previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented. 22) The Authority has no plans or intentions that may materially affect the carrying value or classification of assets, liabilities, or equity. 23) We are responsible for compliance with the laws, regulations, and provisions of contracts and grant agreements applicable to us, including tax or debt limits and debt contracts; and we have identified and disclosed to you all laws, regulations and provisions of contracts and grant agreements that we believe have a direct and material effect on the determination of financial statement amounts or other financial data significant to the audit objectives, including legal and contractual provisions for reporting specific activities in separate funds. 24) There are no violations or possible violations of budget ordinances, laws and regulations (including those pertaining to adopting, approving, and amending budgets), provisions of contracts and grant agreements, tax or debt limits, and any related debt covenants whose effects should be considered for disclosure in the financial statements, or as a basis for recording a loss contingency, or for reporting on noncompliance. 25) We have performed the preparation of the financial statements and related notes and supplemental information. We accepted responsibility for those financial statements and related notes and supplemental information. 26) The Authority has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset been pledged as collateral. 27) The Authority has complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance. 28) We have followed all applicable laws and regulations in adopting, approving, and amending budgets. 29) The financial statements include all component units as well as joint ventures with an equity interest, and properly disclose all other joint ventures and other related organizations. 30) The financial statements properly classify all funds and activities. 31) All funds that meet the quantitative criteria in GASBS Nos. 34 and 37 for presentation as major are identified and presented as such and all other funds that are presented as major are particularly important to financial statement users. 32) Components of net position (net investment in capital assets; restricted; and unrestricted) and equity amounts are properly classified and, if applicable, approved. 33) Investments, derivative instruments, and land and other real estate held by endowments are properly valued. 34) Provisions for uncollectible receivables have been properly identified and recorded. 35) Expenses have been appropriately classified in or allocated to functions and programs in the statement of activities, and allocations have been made on a reasonable basis. 36) Revenues are appropriately classified in the statement of activities within program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal. 37) Interfund, internal, and intra-entity activity and balances have been appropriately classified and reported. 38) Deposits and investment securities and derivative instruments are properly classified as to risk and are properly disclosed. 39) Capital assets, including infrastructure and intangible assets, are properly capitalized, reported, and, if applicable, depreciated. J: JAdministration � Chubbuck Development Authority�Audited Financial Statements�2022 Audited Financials�3.15.23 Management Representation Letter Audit.docx 40) We have appropriately disclosed the Authority's policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available and have determined that net position is properly recognized under the policy. 41) We acknowledge our responsibility for the required supplementary information (RSI). The RSI is measured and presented within prescribed guidelines and the methods of measurement and presentation have not changed from those used in the prior period. We have disclosed to you any significant assumptions and interpretations underlying the measurement and presentation of the RSI. 42) With respect to the supplementary information on which an in -relation -to opinion is issued 1) We acknowledge our responsibility for presenting the supplementary information in accordance with accounting principles generally accepted in the United States of America, and we believe the supplementary information, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America. The methods of measurement and presentation of the supplementary information have not changed from those used in the prior period, and we have disclosed to you any significant assumptions or interpretations underlying the measurement and presentation of the supplementary information. 2) If the supplementary information is not presented with the audited financial statements, we will make the audited financial statements readily available to the intended users of the supplementary information no later than the date we issue the supplementary information and the auditor's report thereon. Signature: l�" 4-�, �t Signature: Title: Executive Director Title: PjAdministration�Chubbuck Development Authority�Audited Financial Statements�2022Audited Financials�3.15.23 Management Representation Letter Audit.docx CHUBBUEI( The urban renewal agency for the City of Chubbuck, Idaho A COMPONENT UNIT OF THE CITY OF CHUBBUCK, IDAHO AUDITED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2022 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2021 CHUBBUCK DEVELOPMENT AUTHORITY TABLE OF CONTENTS Page Title Page 1 Table of Contents 2 AUDITOR'S REPORTS 3-5 FINANCIAL STATEMENTS Government Wide Statement of Net Position 6 Statement of Activities 7 Governmental Funds Balance Sheet 8 Statement of Revenues, Expenditures, and Changes in Fund Balances 9 NOTES TO THE FINANCIAL STATEMENTS 10-14 REQUIRED SUPPLEMENTARY INFORMATION 15 Schedule of Revenues & Expenditures - Budget to Actual - General Fund 16 Schedule of Revenues & Expenditures - Budget to Actual - Chubbuck Urban District Fund 17 Schedule of Revenues & Expenditures - Budget to Actual - Pine Ridge Urban District Fund 18 Schedule of Revenues & Expenditures - Budget to Actual - Northside Crossing Urban District Fund 19 Notes to the Statement of Revenues & Expenditures - Budget to Actual 20 REPORTS REQUIRED BY GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards 21-22 6 Deaton & Company, Chartered Certified Public Accountants twzm 215 North 91h, Suite A Pocatello, ID 83201-5278 (208) 232-5825 Aupin Members of the Idaho Society of Certified Public Accountants Members of the American Institute of Certified Public Accountants INDEPENDENT AUDITOR'S REPORT To the Board of Commissioners Chubbuck Development Authority Chubbuck, Idaho Report on the Financial Statements Opinion We have audited the accompanying financial statements of the governmental activities and each major fund of the Chubbuck Development Authority, (the Authority) a component unit of City of Chubbuck as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements as listed in the In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities information of the Chubbuck Development Authority, as of September 30, 2022, and the respective changes in financial position, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Chubbuck Development Authority, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Chubbuck Development Authority's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Required Supplementary Information Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Chubbuck Development Authority's basic financial statements. The schedule of surplus is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance thereon. We also have previously audited, in accordance with auditing standards generally accepted in the United States of America, the Authority's basic financial statements for the year ended September 30, 2021, and we expressed unmodified opinions on the respective financial statements of the fiduciary fund information. That audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Authority's basic financial statements as a whole. The summarized comparative information is consistent, in all material respects, with the audited financial statements from which it has been derived. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 16, 2023, on our consideration of the Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority's internal control over financial reporting and compliance. Pocatello, Idaho March 16, 2023 CHUBBUCK DEVELOPMENT AUTHORITY STATEMENT OF NET POSITION SEPTEMBER 30, 2022 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2021 ASSETS Current assets Cash and cash equivalents Prepaid expense Property tax receivable Restricted cash Noncurrent assets Non -depreciable capital assets LIABILITIES Current liabilities Accounts payable Grant Payable Current portion of long-term debt Current portion of bond payable Noncurrent liabilities Bond payable NET POSITION Restricted for districts Unrestricted Governmental Activities 2022 2021 $ 1,572,994 8,220 196,694 1,777,908 $ 2,740,773 2,975 11,451 352,980 3,108,179 1,622,524 1,622,524 1.622.524 1.622.524 3,400,432 4,260 407,264 107,886 519,410 4,730,703 179,929 235,616 206,000 621,545 1,429,408 1,656,500 1,429,408 1,656,500 1,948,818 2,278,045 683,130 2,653,778 768,484 (201,120) $ 1,451,614 $ 2,452,658 The accompanying notes are an integral part of these financial statements 6 CHUBBUCK DEVELOPMENT AUTHORITY STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2022 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2021 EXPENSES General government Chubbuck Urban Renewal District Pine Ridge Mall Urban Renewal District NET(EXPENSES)/REVENUE GENERAL REVENUE Property taxes Interest Grant revenue Other CHANGE IN NET POSITION BEGINNING NET POSITION ENDING NET POSITION Governmental Activities 2022 2021 31,899 30,914 3,923,024 2,716,894 157,267 1,960,574 4.112.190 4.708.382 (4,112,190) (4,708,382) 3,073,877 2,952,591 7,268 12,709 - 173,623 30,001 53,242 3,111,146 3,192,165 (1,001,044) (1,516,217) 2,452,658 3,968,875 $ 1,451,614 $ 2,452,658 The accompanying notes are an integral part of these financial statements 7 FUND BALANCES CHUBBUCK DEVELOPMENT AUTHORITY Restricted $ 4 $ 330,892 $ BALANCE SHEET 2,653,778 Committed - 635,264 - - 635,264 228,000 GOVERNMENTALFUNDS 40,260 - - - 40,260 35,138 40,264 SEPTEMBER 30, 2022 196,690 $ 155,544 $ 1,358,654 $ 2,916,916 TOTAL LIABILITIES & WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2021 FUND BALANCES $ 40,274 $ 1,383,778 $ 196,690 $ 157,166 $ 1,777,908 $ 3,108,179 Nonmajor Chubbuck Pine Ridge Mall Northside General Urban Renewal Urban Renewal Urban Renewal Fund District Fund District Fund District Fund 2022 2021 ASSETS Cash and cash equivalents $ 40,270 $ 1,377,180 $ $ 155,544 $ 1,572,994 $ 2,740,773 Prepaid expense - - - - 2,975 Property tax receivable - 6,598 1,622 8,220 11,451 Restricted cash 4 - 196,690 - 196,694 352,980 TOTAL ASSETS $ 40,274 $ 1,383,778 $ 196,690 $ 157,166 $ 1,777,908 $ 3,108,179 LIABILITIES Accounts payable $ 10 $ 4,250 $ - $ - $ 4,260 $ 179,929 Grant payable - 407,264 - 407,264 - Deferred tax revenues - 6,108 1,622 7,730 11,334 10 417,622 1,622 419,254 $ 191,263 FUND BALANCES Restricted $ 4 $ 330,892 $ 196,690 $ 155,544 $ 683,130 $ 2,653,778 Committed - 635,264 - - 635,264 228,000 Unassigned 40,260 - - - 40,260 35,138 40,264 966,156 196,690 $ 155,544 $ 1,358,654 $ 2,916,916 TOTAL LIABILITIES & FUND BALANCES $ 40,274 $ 1,383,778 $ 196,690 $ 157,166 $ 1,777,908 $ 3,108,179 Amounts reported for governmental activities in the statements of net position are different because: Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds, net of accumulated depreciation of $0. 1,622,524 1,622,524 Certain receivables are not current resources and are reported as deferred revenues in the governmental f 7,730 11,334 Long-term liabilities are not due and payable in the current period and therefore, are not reported in the governmental funds: Note payable (235,616) Bond payable (1,537,294) (1,862,500) Net Position of Governmental Activities $ 1,451,614 $ 2,452,658 The accompanying notes are an integral part of these financial statements 8 EXCESS OF REVENUES OVER CHUBBUCK DEVELOPMENT AUTHORITY STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (1,532,910) (186,022) 155,544 (1,558,262) (1,683,806) GOVERNMENTALFUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 - WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2021 - - Nonmajor NET CHANGE IN FUND BALANCE 5,126 (1,532,910) (186,022) 155,544 (1,558,262) Chubbuck Pine Ridge Mall Northside BEGINNING FUND BALANCE 35,138 2,499,066 382,712 General Urban Renewal Urban Renewal Urban Renewal ENDING FUND BALANCE $ 40,264 $ 966,156 $ 196,690 $ Fund District Fund District Fund District Fund 2022 2021 REVENUES $ (1,558,262) $ 206,194 Property taxes $ 4 $ 2,625,730 $ 296,203 $ 155,544 $ 3,077,481 $ 2,948,119 Interest revenue 7,021 - 248 - 7,269 12,709 Grant revenue - - - 173,623 Other revenue 30,000 30,000 195 Service and contract revenue - - - - - 53,048 37,025 2,625,730 296,451 155,544 3,114,750 3,187,694 EXPENDITURES Administration 1,440 2,010 32,500 - 35,950 4,160 Construction - 3,271,140 - 3,271,140 2,169,018 Grants - 635,264 635,264 228,000 Professional services 22,516 - 22,516 40,737 Other expenses 7,943 226 - 8,169 2,071,551 Debt services Principal - 235,616 328,000 563,616 165,617 Interest and fiscal charges 14,384 121,973 136,357 192,417 Capital outlays - - - - - 31,899 4,158,640 482,473 4,673,012 4,871,500 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 5,126 (1,532,910) (186,022) 155,544 (1,558,262) (1,683,806) OTHER FINANCING SOURCES (USES) Proceeds from debt - - 1,890,000 - - 1,890,000 NET CHANGE IN FUND BALANCE 5,126 (1,532,910) (186,022) 155,544 (1,558,262) 206,194 BEGINNING FUND BALANCE 35,138 2,499,066 382,712 - 2,916,916 2,710,722 ENDING FUND BALANCE $ 40,264 $ 966,156 $ 196,690 $ 155,544 $ 1,358,654 $ 2,916,916 Net change in fund balances -total governmental funds $ (1,558,262) $ 206,194 Amounts reported for governmental activities in the statements of activities are different because Governmental funds only report taxes received within 30 days as current fund revenues. All taxes receivable are treated as revenues in the statement of activities. Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the costs of those assets is depreciated over their estimated useful lives: Capital asset purchases Governmental funds report principal repayment on debt as an expenditure and debt issuance as an other financing source. Long-term notes provide current financial resources to the governmental funds, but issuing debt increases long term liabilities in the Statement of Net Position. The discount on the long-term debt is an other financial resource in the government fund but decreases the net liability in the Statement of Net Position: Principal repayment on debt Long term debt proceeds Long term debt discount Change in Net Position of Governmental Activities The accompanying notes are an integral part of these financial statements 9 (3,604) 4,472 563,616 165,617 - (1,890,000) (2,794) (2,500) $ (1,001,044) $ (1,516,217) CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 1 - Summary of Sianificant Accountina Policies A. Reporting entity The Idaho Urban Renewal Law of 1965 authorized the Mayor, with advice and consent of the City Council, to appoint a board of commissioners for an urban renewal agency to function within the municipality of Chubbuck, provided that the Council has first passed a resolution finding that one or more such areas are necessary, and that there is a need for an urban renewal agency to function in the City. Chubbuck's urban renewal agency, Chubbuck Development Authority (CDA), was found necessary by a resolution in 1992 and the board members were appointed thereafter. Unlike other advisory boards to the City Council, state law declares this agency to be "an independent public body corporate and politic" and gives it a wide range of authority to effectuate urban renewal. Under generally accepted accounting principles, as adopted by the Governmental Accounting Standards Board, the CDA is included in the Annual Financial Statements of the City of Chubbuck as a discretely presented component unit. B. Government -wide and fund financial statements The government -wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the nonfiduciary activities of the government. For the most part, the effect of interfund activity has been removed from these statements. The fund financial statements provide information about the Authority's funds. The emphasis of fund financial statements is on major funds, each displayed in a separate column. The Authority reports the following major funds: The General Fund is the Authority's primary operating fund. It accounts for all financial resources, except those accounted for in another fund. The Chubbuck Tax Increment Financing (TIF) District Fund (Chubbuck District), a special revenue fund, accounts for the Authority's operations within the revenue allocation area of that district. The Chubbuck District was established in 1992 and has a termination date in the year 2022. The Pine Ridge Tax Increment Financing (TIF) District Fund (Pine Ridge District), a special revenue fund, accounts for the Authority's operations within the revenue allocation area of that district. The Pine Ridge District was established in 2016 and has a termination date in the year 2036, except for revenues which may be received in 2037. The Northside Crossing Tax Increment Financing (TIF) District Fund (Northside District), a special revenue fund, accounts for the Authority's operations within the revenue allocation area of that district. The Northside District was established in 2022, with a termination date in the year 2043. The revenue generated in the districts' fund are restricted to be used for the district and within the TIF district boundaries. C. Measurement focus, basis of accounting, and financial statement presentation The government -wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. 10 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 1 - Summary of Significant Accounting Policies (Continued) C. Measurement focus, basis of accounting, and financial statement presentation (continued) Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the authority. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. D. Assets, liabilities, and net position or fund balance 1. Deposits and investments Unrestricted cash balances from all funds are combined and invested in investments authorized under Idaho State Code. Earnings from these investments are credited to the funds based on the monthly balance of cash in each fund. Cash includes cash on hand, deposits, and other investments which are immediately convertible to cash or have a maturity of less than 90 days. The CDA is authorized under State Code to invest in obligations of the U.S. Treasury, U.S. Government backed institutions, commercial paper, and repurchase agreements. CDA's policy is to restrict investment to highly liquid money market accounts. 2. Receivables and payables Property taxes receivable are recorded when certified by the State Tax Commission in October of each year. Taxes not received within thirty days of year-end are deferred. The taxing authorities within each tax increment financing district levy property taxes by the third Monday of September on a market value basis. These taxes are billed to the taxpayers in November and are due December 20. Real property taxes not paid constitute a lien on the property when entered on the real property assessment roll as delinquent on the first day of January of the succeeding year. Property taxes are assessed and collected for the Authority by Bannock County. 3. Restricted assets It is the Authorities policy to first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. When unrestricted resources are spent, the order of spending is committed (if applicable), assigned (if applicable) and unassigned. 4. Capital Assets The Authority has purchased land properties within the Chubbuck TIF District as capital assets. The land is to be developed by the authority, sold to a third party for further development, or donated. It is the policy of the Authority to capitalize assets that are expected to last longer than one year and cost exceeds $5,000. 5. Compensated Absences The Authority has no liability for compensated absences. 6. Fund Balance In the fund financial statements, governmental funds report the following classifications of fund balance: Nonspendable items- This category includes a portion of net resources that cannot be spent because of their form or because they must be maintained intact. This includes inventories and prepaid items. 11 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 1 - Summary of Significant Accounting Policies (Continued) D. Assets, liabilities, and net position or fund balance (continued) 6. Fund Balance (continued) Restricted items- This category includes resources where limitations are imposed by external entities, such as grantors and creditors, or to comply with laws and regulations of governments. Committed items -This category includes amounts that can only be used for the specific purposes determined by a formal action of the Authority's highest level of decision-making for the Authority. Commitments may be changed or lifted only by the Board taking the same formal action that imposed the constraint originally. Assigned items -Assigned items represent the Authority's intent to use certain resources for specific purposes. The Board may establish the intended use of these funds for a designated purpose. Unassigned items- Represents the remainder of the Authority's equity in governmental fund -type balances in excess of the aforementioned classifications. NOTE 2 - Reconciliation of Government -wide and Fund Financial Statements A. Explanation of certain differences between the governmental fund balance sheet and the government - wide statement of net position. The governmental fund balance sheet includes the reconciliation between fund balance - total governmental funds and net position - governmental activities as reported in the government -wide statement of net position. One element of the reconciliation explains that "Certain receivables are not current resources and are reported as deferred revenues in the governmental funds". The detail of this difference is as follows: Deferred Property Taxes Capital assets are made up of the following non -depreciable assets: Land $ 7,730 $ 1,622,524 On October 15, 2020, the Authority approved the issuance of a bond in the amount of $1,940,000 at a discount of $50,000. The bond carries an interest rate at 6.750%. Long-term Bond Payable $ 1,582,000 Long-term Bond Discount (44,706) $ 1,537,294 NOTE 3 - Stewardship, Compliance and Accountability A. Budgetary information Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general and special revenue funds. All annual appropriations lapse at fiscal year end. The Board of the Chubbuck Development Authority does not and is not required to hold public meeting in conjunction with adoption of its annual budget. The City Council approved the 2020 budget and previous fiscal years. The Authority approved the 2021 budget and will approve future budgets. The new budget is submitted to the board at its meeting in October as part of the cash report presented by the Treasurer. This is when the budget is approved. Budgets may be amended by the same procedure used to adopt the budget. 12 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 4 - Detailed Notes on All Funds A. Deposits and investments Cash and cash equivalents at yearend consist of the following: Deposits Cash in bank Escrow Outstanding checks The Authority has no investments. Bank Book $ 2,279,782 $ 1,572,998 196,694 196,694 (706,783) - $ 1,769,693 $ 1,769,692 Deposits - Custodial Credit Risk for deposits is the risk that, in the event of bank (financial institute) failure, the government's deposits may not be returned to it. Deposits and investment transactions are subject to risks. Interest Rate Risk is the risk that changes in interest rates will adversely affect the value of an investment. This risk in null since the Authority has no investments. Credit Risk is the risk that an issuer or a counter party to an investment will not fulfill its obligations. Concentration of Credit Risk is the risk of loss attributed to the magnitude of an investment in a single issuer. Because the Authority has all trust deposits held within one trust department and invested in the same fund a concentration risk exists. Deposits are held in an institution covered by collateralized accounts or federal depository insurance up to $250,000. The Authority's concentration credit risk was $0. B. Changes in Capital Assets A summary of capital assets at year end is as follows: Beginning Ending Balance Additions Deletions Balance Non -depreciable assets Land $ 1,622,524 $ - $ - $ 1,622,524 $ 1,622,524 $ - $ - $ 1,622,524 C. Receivables 1. Property Taxes Property tax revenues are recognized and accrued when billed by Bannock County. CDA's property taxes, levied by the third Monday of September on a market value basis, are billed to the taxpayers in November. Half of the real, personal and mobile home property taxes are due on December 20 and the remainder is due the following June 20. Other property taxes are due December 20. Real property taxes not paid constitute a lien on the property when entered on the real property assessment roll as delinquent on the first day of January of the succeeding year. Property taxes are assessed and collected for CDA by Bannock County. 13 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 4 - Detailed Notes on All Funds (Continued) C. Receivables (Continued) 2. Property Tax Receivable and Deferred Property Taxes At yearend, property tax receivable and deferred tax revenues consisted of the following: Chubbuck Urban Renewal District Fund Northside Crossing TIF District Fund D. Long-term Debt Receivables Deferred Tax $ 6,598 $ 6,108 1,622 1,622 $ 8.220 $ 7.730 On October 15, 2020, the Authority approved the issuance of a bond in the amount of $1,940,000 at a discount of $50,000. The bond carries an interest rate at 6.750% and a maturity date of November 1, 2037. The bond is being used to provide monies to reimburse the developer of the Pine Ridge Mall for eligible costs and thereby provide more capital for further development in the Pine Ridge Mall Project Area. The Pine Ridge Mall Project is within the Pine Ridge Tax Increment Financing District (TIF) District. The bond will be payable from and secured by the revenues generated from the TIF District tax increments. Current portion Noncurrent portion Long-term bond payable Long-term debt interest NOTE 5 - Other Information A. Contingent liabilities Face Value Discount Book Value $ 110,680 $ 2,794 $ 107,886 1,471,320 41,912 1,429,408 $ 1,582,000 $ 44,706 $ 1,537,294 Beginning Ending Balance Additions Reductions Balance $ 1,910,000 $ - $ (328,000) $ 1,582,000 (47,500) - 2,794 (44,706) $ 1,862,500 $ - $ (325,206) $ 1,537,294 The majority of the revenue collected by the CDA is derived from tax increment financing. Tax increment financing is a method of segregating a portion of the property taxes paid on properties within an urban renewal district to fund improvements for which the district was formed. This is accomplished by freezing the market value of property within the district. A contingent liability exists when the market value increase in the district is not large enough to fund any debt incurred by the district to finance the improvements within the district. B. Subsequent events Subsequent events were evaluated up to March 16, 2023, the date the financial statements were available to be issued. The Authority will implement a new Tax Increment Financing (TIF) district for fiscal year 2023. The TIF district for 2023 will be titled as the Harvest Springs Urban Renewal District. D. Tax abatement During the year the Authority was not subject to any tax abatements. 14 REQUIRED SUPPLEMENTARY INFORMATION 15 CHUBBUCK DEVELOPMENT AUTHORITY SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL GENERALFUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 REVENUES Interest revenue Other revenue EXPENDITURES Administration Professional services Other expenses NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Original Amended Budget Budget Actual Amounts Amounts Amounts Variance $ - $ - $ 7,021 $ 7,021 55,000 55,000 30,004 (24,996) 55,000 55,000 37,025 (17,975) 15,000 15,000 1,440 13,560 30,000 30,000 22,516 7,484 10,000 10,000 7,943 2,057 55,000 55,000 31,899 23,101 $ - $ - 5,126 $ 5,126 16 35,138 $ 40,264 CHUBBUCK DEVELOPMENT AUTHORITY SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL CHUBBUCK URBAN RENEWAL DISTRICT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 EXPENDITURES Administration Original Amended 2,010 27,990 Construction Budget Budget Actual (952,840) Grants Amounts Amounts Amounts Variance REVENUES 3,000 3,000 226 2,774 Property taxes $ 2,575,000 $ 2,575,000 $ 2,625,730 $ 50,730 Interest revenue 5,000 5,000 - (5,000) Miscellaneous revenue 400,000 400,000 - (400,000) BEGINNING FUND BALANCE 2,980,000 2,980,000 2,625,730 (354,270) EXPENDITURES Administration 30,000 30,000 2,010 27,990 Construction 2,318,300 2,318,300 3,271,140 (952,840) Grants 228,700 228,700 635,264 (406,564) Other expenses 3,000 3,000 226 2,774 Debt services 400,000 400,000 250,000 150,000 2,980,000 2,980,000 4,158,640 (1,178,640) NET CHANGE IN FUND BALANCE $ - $ - (1,532,910) $ (1,532,910) BEGINNING FUND BALANCE 2,499,066 ENDING FUND BALANCE $ 966,156 17 CHUBBUCK DEVELOPMENT AUTHORITY SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL PINE RIDGE MALL URBAN RENEWAL DISTRICT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 Original Amended (17,500) Debt services Budget Budget Actual 160,000 160,000 328,000 Amounts Amounts Amounts Variance REVENUES 175,000 175,000 482,473 (307,473) REVENUES OVER (UNDER) EXPENDITURES Property taxes $ 175,000 $ 175,000 $ 296,203 $ 121,203 Interest revenue - - 248 248 175,000 175,000 296,451 121,451 01»kgIQ1101:7*[ Administration 15,000 15,000 32,500 (17,500) Debt services Principal 160,000 160,000 328,000 (168,000) Interest and fiscal charges - - 121,973 (121,973) 175,000 175,000 482,473 (307,473) REVENUES OVER (UNDER) EXPENDITURES - - (186,022) (186,022) OTHER FINANCING SOURCES (USES) Proceeds from debt NET CHANGE IN FUND BALANCE $ - $ - (186,022) $ (186,022) BEGINNING FUND BALANCE 382,712 ENDING FUND BALANCE $ 196,690 18 CHUBBUCK DEVELOPMENT AUTHORITY SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL NORTHSIDE CROSSING URBAN RENEWAL DISTRICT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2022 REVENUES Property taxes EXPENDITURES Administration Grant expense NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Original Amended Budget Budget Actual Amounts Amounts Amounts Variance — $ 90,000 $ 90,000 $ 155,544 $ 65,544 90,000 90,000 155,544 65,544 5,000 5,000 85,000 85,000 90,000 90,000 m m 19 - 5,000 85,000 - 90,000 155,544 $ (24,456) lP A- r_nn CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO REQUIRED SUPPLEMENTAL INFORMATION FOR THE YEAR ENDED SEPTEMBER 30, 2022 NOTE 1 -BUDGETARY INFORMATION GENERALFUND The Authority did not budget for the interest revenue that would be received. The Authority over-estimated the administrative revenue. The Authority budgeted an excess of funds for adminitrative expenses. CHUBBUCK URBAN RENEWAL DISTRICT FUND The Authority did not budget sufficient amounts for the following expenditures: Construction The under -budgeted expenditures were paid using revenues in excess of budget and unspent revenues from other expenses. PINE RIDGE MALL URBAN RENEWAL DISTRICT FUND The Authority did not budget sufficient amounts for the following expenditures: Administration Debt service Principle and interest expense The under -budgeted expenditures were paid using revenues in excess of budget. NORTHSIDE CROSSING URBAN RENEWAL DISTRICT FUND The Authority over-estimated both the administrative and grant expenses. The Authority under -estimated the level of revenue from the county. NOTE 2 - LEGAL ADOPTION OF BUDGET The Authority is required by State law to adopt annual budgets on all governmental funds that cover a period from October 1, through September 30. The Authority approved the Fiscal Year End 2022 budget and will approve future budgets. 20 Deaton & Company, Chartered Certified Public Accountants 215 North 91h, Suite A Pocatello, ID 83201-5278 (208)232-5825 TWINE W!EM IM Members of the Idaho Society of Certified Public Accountants Members of the American Institute of Certified Public Accountants INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Commissioners Chubbuck Development Authority Chubbuck, Idaho We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standardsd issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund, and the aggregate remaining fund information of Chubbuck Development Authority, as of and for the years ended September 30, 2022, and the related notes to the financial statements, which collectively comprise Chubbuck Development Authority's basic financial statements, and have issued our report thereon dated March 16, 2023. Report on Internal Control Over Financial Reporting In planning and performing our audit, we considered Chubbuck Development Authority's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Chubbuck Development Authority's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Chubbuck Development Authority's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 21 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Chubbuck, Idaho March 16, 2023 22