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HomeMy WebLinkAbout2024 CDA1 � 1 1 DEVELOPMENT RLITHORITY 2024 ANNUAL -7 I?,FP0I?LT -04 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 calendaryear, which reportshall 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 01 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. 1 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 October 2024 Rick Keller October 2026 Jeff Hough October 2026 Dan Heiner October 2028 Krystal Denney October 2027 Amanda James October 2028 Oliver Ibarra October 2028 Also serving with the CDA are: ❑ Devin Hillam, Administrator/Executive Director through June 2024 ❑ Ashley Squyres, Administrator/Executive Director from July 2024 through present ❑ TJ Budge, Racine Olson, Legal Counsel ❑ Jordan & Company, Bookkeeper ❑ Joey Bowers, Clerk & Secretary CDA Board Leadership: Annette Baumeister and Rick Keller served as Chairwoman and Vice -Chairman respectively through October 2024. Dan Heiner and Amanda James were elected as Chairman and Vice -Chairwoman respectively in October 2024. 2 RESOLUTIONS The Chubbuck Development Authority passed the following resolutions in Calendar Year 2024: Resolution 2024-01 passed on March 26, 2024 declaring an emergency exists with relation to the abatement of unsafe conditions at its property at 339 East Chubbuck Road, and allowing for the emergency expenditures of funds to abate the unsafe property through demolition and disposal. Resolution 2024-02 passed on August 12, 2024 adopting the Fiscal Year 2025 budget for October 01, 2024 through September 30, 2025. Resolution 2024-03 passed on August 12, 2024 revoked Resolution 2017-01 which delegated certain authorities to the executive director of the authority; and revoking and replacing Resolution 2022-01 to amend the process by which ministerial claims are paid. Resolution 2024-04 passed on August 12, 2024 amended the process for payment of ministerial claims as defined in Resolution 2022-01. Resolution 2024-05 passed on September 17, 2024 adopted the Amended Fiscal Year 2024 budget for October 01, 2023 through September 30, 2024. 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. FY2024 Amended Budget 2. FY2023 Audit URBAN RENEWAL DISTRICTS Chubbuck Urban Renewal District Cest. 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 03, 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. 3 2024 Urban Renewal Projects Projects and payments undertaken in calendar year 2024 projects by the Chubbuck Development Authority Board are follows: • Eagle Road Stormwater Improvement Project: This project came about due to the ongoing flooding of Eagle Road during and following any significant rain storm. The water would completely submerge the road in multiple locations and would block the road for several days at times. In 2024, the Eagle Road stormwater project was constructed which installed new storm drain inlets and pipe in Eagle Road to allow the water in one area to drain off the road. In addition, a large stormwater pond was built in Briarwood Park to allow the water at the other end of Eagle Road to drain off the road and infiltrate into the ground. The project included installing fence around the pond to protect the public and replacing the small basketball court and a section of walking path that had to be removed to build the pond. The total cost of the project was about $180,000 with CDA covering a little more than $145,370. This project results in reduced maintenance costs and better road conditions in the future and the city was very appreciative of CDA's contribution. • Pedestrian Safety Crossings: In 2024, the CDA funded pedestrian safety crossings throughout the community as one of the final projects of the 1992 Plan and the crossing were installed by the City. These improvements, called Rectangular Rapid Flashing Beacons (RRFBs), help notify oncoming traffic of a pedestrian's intent to cross the road at uncontrolled, marked crosswalks, day or night, through bright flashing LED lights. These improved crossings were installed at mid -block locations on Philbin Road, West Chubbuck Road, Hawthorne Road, Whitaker Road, and New Day Parkway. Installation of the RRFBs aligned with the CDA and City's goals of increasing walkability through the community as part of a plan to better create "place" which will help attract new residents and businesses to locate in Chubbuck. The total cost of the project was $305,217. 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 F 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 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 two (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 2024 include: • 339 East 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. Unfortunately, on January 07, 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 Lot (unaddressed): In 2023, an Agreement to Negotiate Exclusively was signed with the preferred developer and the CDA contracted to have a Fair Reuse Appraisal completed. An appraisal was completed; however, in 2024, the preferred developer has chosen not to pursue a project at this time. The CDA is contemplating issuing a new Request for Proposal (RFP). • 211 East 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 in December 2023. The CDA worked continuously with the developer throughout 2024 to meet the negotiated conditions of approval of a property transfer. The CDA expects to close on the property transfer in early 2025. Future Needs/Plans Moving into calendar years 2025 and 2026, the CDA intends to dispose of all of its properties pursuant to Idaho Code. Excess monies will be remitted to the County Treasurer for disbursement to the taxing districts. 5 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 03, 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 01, 2037. The bond is being used to provide monies to reimburse the developer for already completed eligible costs and thereby provides more capital for further investment in the development in the Pine Ridge Mall urban renewal district. 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 $15,000 administrative fee in 2024 and the administrative fee was transferred to the CDA General Fund in 2024. The Pine Ridge District generated $245,334.52 in tax increment revenues and interest earnings during calendar year 2024. There were no significant developments or construction within the district in calendar year 2024, 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 2025, 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 Cest. 2020) The Northside Crossing Urban Renewal Plan was adopted by the Chubbuck City Council via Ordinance Number 819 on November 04, 2020 and was accepted by the State Tax Commission on December 07, 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. Development progress in the district is occurring rapidly, although it was less rapidly in 2024 than in previous years, likely due to increased interest rates. In calendar year 2024, the CDA received approximately $233,925.07 in property tax increment revenue and the CDA reimbursed the Developer in the amount of $182,938.92 in accordance with the executed Owner Participation Agreement between the CDA and the Developer. Future Needs/Plans Moving into 2025, 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 Springs Urban Renewal Plan Cest. 2021) The Harvest Springs Urban Renewal Plan was adopted by the Chubbuck City Council via Ordinance Number 840 on November 03, 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 2024, the CDA received $19,260.46 in property tax increment revenue. The CDA did not provide any reimbursement for owner participation agreements. 7 COMING IN 2025: A NEW "DOWNTOWN" URBAN RENEWAL DISTRICT? In October 2024, the CDA partnered with the City of Chubbuck to engage the Urban Land Institute of Idaho on a technical panel study. This purpose of this study was to provide strategic recommendations to support Chubbuck's development initiatives; focusing on sustainable growth, infrastructure enhancement, and community engagement. The report offers actionable insights, both short-term and long-term, into urban planning; economic development; and transportation strategies tailored to Chubbuck's unique context. It emphasizes the importance of creating vibrant public spaces, improving connectivity, and fostering economic opportunities to enhance the quality of life for residents. The report also offered the perceived barriers and suggestions for overcoming these challenges. In order to find ways to begin implementation of these recommendations, a funding source is needed. One of the key recommendations was for the City of Chubbuck to create a tax increment financing district in order to assist in the funding of the projects and to encourage private investment in an area where many would like to create a downtown experience. It is anticipated in early 2025 the CDA, along with the City, will contemplate the exploration of creating a new urban renewal district. 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. Attachments: Fiscal Year 2024 Budget & Fiscal Year 2023 Audit CHUBBUCK The urban renewal agency for the City of Chubbuck, Idaho CHUBBUCK DEVELOPMENT AUTHORITY A COMPONENT UNIT OF THE CITY OF CHUBBUCK, IDAHO AUDITED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2023 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2022 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 10-15 REQUIRED SUPPLEMENTARY INFORMATION 16 Schedule of Revenues & Expenditures - Budget to Actual - General Fund 17 Schedule of Revenues & Expenditures - Budget to Actual - Chubbuck Urban District Fund 18 Schedule of Revenues & Expenditures - Budget to Actual - Pine Ridge Urban District Fund 19 Schedule of Revenues & Expenditures - Budget to Actual - Northside Crossing Urban Renewal District Fund 20 Schedule of Revenues & Expenditures - Budget to Actual - Harvest Springs Urban Renewal District Fund 21 Notes to the Statement of Revenues & Expenditures - Budget to Actual 22 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 23-24 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, 2023, 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, 2023, 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. 9 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. 4 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, 2022, 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 25, 2024, 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 25, 2024 CHUBBUCK DEVELOPMENT AUTHORITY STATEMENT OF NET POSITION SEPTEMBER 30, 2023 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2022 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 bond payable Noncurrent liabilities Bond payable NET POSITION Restricted for districts Unrestricted Governmental Activities 2023 2022 $ 2,382,566 $ 1,572,994 3,593 - 16,706 8,220 142,384 196,694 2,545,249 1,777,908 1,260,321 1,622,524 1.260.321 1.622.524 3,805,570 3,400,432 2,127 4,260 - 407,264 56,198 107,886 58,325 519,410 1,292,891 1,429,408 1,292,891 1,429,408 1,351,216 1,948,818 2,368,237 683,130 86,117 768,484 $ 2,454,354 $ 1,451,614 The accompanying notes are an integral part of these financial statements 6 CHUBBUCK DEVELOPMENT AUTHORITY STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2023 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2022 EXPENSES General government Chubbuck Urban Renewal District Pine Ridge Mall Urban Renewal District Northside Urban Renewal District NET (EXPENSES)/REVENUE GENERAL REVENUE Property taxes Interest Service and contract revenue Other CHANGE IN NET POSITION BEGINNING NET POSITION ENDING NET POSITION Governmental Activities 2023 2022 $ 44,924 1,620,647 109,347 28,110 1,803,028 (1,803,028) $ 31,899 3,923,024 157,267 4,112,190 (4,112,190) 2,722,800 3,073,877 50,894 7,268 5,000 27,074 30,001 2,805,768 3,111,146 1,002,740 (1,001,044) 1,451,614 2,452,658 $ 2,454,354 $ 1,451,614 The accompanying notes are an integral part of these financial statements 7 The accompanying notes are an integral part of these financial statements 8 CHUBBUCK DEVELOPMENT AUTHORITY BALANCE SHEET GOVERNMENTALFUNDS SEPTEMBER 30, 2023 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2022 Nonmajor Chubbuck Pine Ridge Mall Northside Harvest Springs General Urban Renewal Urban Renewal Urban Renewal Urban Renewal Fund District Fund District Fund District Fund District Fund 2023 2022 ASSETS Cash and cash equivalents $ 156,713 $ 1,952,378 $ $ 256,977 $ 16,498 $ 2,382,566 $ 1,572,994 Prepaid expense 3,593 - - - 3,593 - Property tax receivable - 9,087 7,619 16,706 8,220 Restricted cash 18 - 142,366 - - 142,384 196,694 TOTAL ASSETS $ 160,324 $ 1,961,465 $ 142,366 $ 264,596 $ 16,498 $ 2,545,249 $ 1,777,908 LIABILITIES Accounts payable $ 2,127 $ - $ - $ - $ - $ 2,127 $ 4,260 Grant payable - - - - 407,264 Deferred tax revenues - 9,087 7,619 16,706 7,730 2,127 9,087 - 7,619 - 18,833 419,254 FUND BALANCES Restricted 18 1,952,378 142,366 256,977 16,498 2,368,237 683,130 Committed - - - - - - 635,264 Unassigned 158,179 - - - - 158,179 40,260 158,197 1,952,378 142,366 $ 256,977 $ 16,498 $ 2,526,416 $ 1,358,654 TOTAL LIABILITIES & FUND BALANCES $ 160,324 $ 1,961,465 $ 142,366 $ 264,596 $ 16,498 $ 2,545,249 $ 1,777,908 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. 1,260,321 1,622,524 Certain receivables are not current resources and are reported as deferred revenues in the governmental funds 16,706 7,730 Long-term liabilities are not due and payable in the current period and therefore, are not reported in the governmental funds: Bond payable (1,349,089) (1,537,294) Net Position of Governmental Activities $ 2,454,354 $ 1,451,614 The accompanying notes are an integral part of these financial statements 8 EXPENDITURES Administration Construction Grants Professional services Other expenses Debt services Principal Interest and fiscal charges 10,935 84,037 17,500 22,123 134,595 35,950 CHUBBUCK DEVELOPMENT AUTHORITY 3,271,140 - - - 635,264 STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 22,516 7,724 28,110 35,834 8,169 986,222 (54,324) GOVERNMENTAL FUNDS 16,498 1,167,762 (1,558,262) BEGINNING FUND BALANCE 40,264 966,156 196,690 FOR THE YEAR ENDED SEPTEMBER 30, 2023 1,358,654 2,916,916 ENDING FUND BALANCE $ 158,197 $ WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2022 256,977 $ 16,498 $ 2,526,416 $ 1,358,654 Net change in fund balances -total governmental funds Nonmajor $ 1,167,762 $ (1,558,262) Chubbuck Pine Ridge Mall Northside Harvest Springs General Urban Renewal Urban Renewal Urban Renewal Urban Renewal Fund District Fund District Fund District Fund District Fund 2023 2022 REVENUES Property taxes $ 14 $ 2,292,592 $ 253,054 $ 151,666 $ 16,498 $ 2,713,824 $ 3,077,481 Administration 117,123 - - - - 117,123 - Interest revenue 45,720 - 5,174 50,894 7,269 Other revenue - 27,074 - 27,074 30,000 Service and contract revenue 5,000 - 5,000 162,857 2,324,666 258,228 151,666 16,498 2,913,915 3,114,750 EXPENDITURES Administration Construction Grants Professional services Other expenses Debt services Principal Interest and fiscal charges 10,935 84,037 17,500 22,123 134,595 35,950 - 1,254,407 - - 1,254,407 3,271,140 - - - 635,264 26,265 - 26,265 22,516 7,724 28,110 35,834 8,169 191,000 191,000 563,616 104,052 - 104,052 136,357 44,924 1,338,444 312,552 50,233 1,746,153 4,673,012 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 117,933 986,222 (54,324) 101,433 16,498 1,167,762 (1,558,262) NET CHANGE IN FUND BALANCE 117,933 986,222 (54,324) 101,433 16,498 1,167,762 (1,558,262) BEGINNING FUND BALANCE 40,264 966,156 196,690 155,544 1,358,654 2,916,916 ENDING FUND BALANCE $ 158,197 $ 1,952,378 $ 142,366 $ 256,977 $ 16,498 $ 2,526,416 $ 1,358,654 Net change in fund balances -total governmental funds $ 1,167,762 $ (1,558,262) Amounts reported for governmental activities in the statements of activities are different because: Governmental funds only report taxes received within 60 days as current fund revenues. All taxes receivable are treated as revenues in the statement of activities. 8,976 (3,604) 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 donation (362,203) 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 191,000 563,616 Long term debt discount (2,795) (2,794) Change in Net Position of Governmental Activities $ 1,002,740 $ (1,001,044) The accompanying notes are an integral part of these financial statements 9 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 2023. 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. The Harvest Spring Tax Increment Financing (TIF) District Fund (Harvest Springs District), a special revenue fund, accounts for the Authority's operations within the revenue allocation area of that district. The Harvest Springs District was established in 2023. The revenue generated in the districts' fund are restricted to be used for the district and within the TIF district boundaries. 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 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. 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 sixty 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. 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 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. 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 $ 16,706 $ 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 $ 1,391,000 Long-term Bond Discount (41,911) $ 1,349,089 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. 12 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 3 - Stewardship, Compliance and Accountability (Continued) A. Budgetary information (continued) 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. NOTE 4 - Detailed Notes on All Funds A. Deposits and investments Cash and cash equivalents at year-end consist of the following: Deposits Cash in bank Escrow Outstanding checks The Authority has no investments. Bank Book $ 2,736,177 $ 2,382,584 142,366 142,366 (353,593) - $ 2,524,951 $ 2,524,951 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 is $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 $ - $ 362,203 $ 1,260,321 $ 1,622,524 $ - $ 362,203 $ 1,260,321 13 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 4 - Detailed Notes on All Funds (Continued) 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. 2. Property Tax Receivable and Deferred Property Taxes At yearend, property tax receivable and deferred tax revenues consisted of the following: General fund Chubbuck Urban Renewal District Fund Pine Ridge Mall Urban Renewal District Fund Northside Crossing TIF District Fund Harvest Springs TIF District Fund Receivables Deferred Tax 9,087 9,087 7,619 7,619 $ 16.706 $ 16.706 D. Long-term Debt 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. NOTE 5 - Other Information A. Contingent liabilities 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. 14 Face Value Discount Book Value Current portion $ 58,992 $ 2,794 $ 56,198 Noncurrent portion 1,332,008 39,117 1,292,891 $ 1,391,000 $ 41,911 1,349,089 Beginning Ending Balance Additions Reductions Balance Long-term bond payable $ 1,582,000 $ - $ (191,000) $ 1,391,000 Long-term debt interest (44,705) - 2,794 (41,911) $ 1,537,295 $ - $ (188,206) $ 1,349,089 NOTE 5 - Other Information A. Contingent liabilities 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. 14 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 5 - Other Information (Continued) B. Subsequent events Subsequent events were evaluated up to March 25, 2024, the date the financial statements were available to be issued. The district was under contract to sale real property at yearend. However, a building included in the contract was destroyed by a fire and the contract was withdrawn by both parties in January of 2024. C. Tax abatement During the year the Authority was not subject to any tax abatements. 15 REQUIRED SUPPLEMENTARY INFORMATION 16 CHUBBUCK DEVELOPMENT AUTHORITY SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL GENERALFUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 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 $ - $ - $ 45,720 $ 45,720 55,000 265,450 117,137 (148,313) 55,000 265,450 162,857 (102,593) 42,000 17,900 10,935 6,965 20,000 20,500 26,265 (5,765) 3,200 4,600 7,724 (3,124) 65,200 43,000 44,924 (1,924) $ (10,200) $ 222,450 117,933 $ (104,517) 17 40,264 $ 158,197 CHUBBUCK DEVELOPMENT AUTHORITY SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL CHUBBUCK URBAN RENEWAL DISTRICT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 REVENUES Property taxes Miscellaneous revenue EXPENDITURES Administration Construction Other expenses Debt services NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Original Amended Budget Budget Actual Amounts Amounts Amounts Variance $ 2,575,000 $ 2,450,000 $ 2,292,592 $ (157,408) - - 32,074 32,074 2,575,000 2,450,000 2,324,666 (125,334) 35,000 80,000 84,037 (4,037) 2,104,800 2,548,213 1,254,407 1,293,806 - 44,237 - 44,237 420,000 - - - 2,559,800 2,672,450 1,338,444 1,334,006 $ 15,200 $ (222,450) 18 986,222 $ 1,208,672 966,156 $ 1,952,378 CHUBBUCK DEVELOPMENT AUTHORITY SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL PINE RIDGE MALL URBAN RENEWAL DISTRICT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 REVENUES Property taxes Interest revenue EXPENDITURES Original Amended Budget Budget Actual Amounts Amounts Amounts Variance $ 297,000 $ 270,000 $ 253,054 $ (16,946) - - 5,174 5,174 297,000 270,000 258,228 (11,772) Administration 15,000 15,000 17,500 (2,500) Debt services Principal 287,000 255,000 191,000 64,000 Interest and fiscal charges - - 104,052 (104,052) 302,000 270,000 312,552 (42,552) REVENUES OVER (UNDER) EXPENDITURES (5,000) - (54,324) (54,324) NET CHANGE IN FUND BALANCE $ (5,000) $ - (54,324) $ (54,324) BEGINNING FUND BALANCE 196,690 ENDING FUND BALANCE $ 142,366 19 CHUBBUCK DEVELOPMENT AUTHORITY SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL NORTHSIDE CROSSING URBAN RENEWAL DISTRICT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 Original Amended Budget Budget Actual Amounts Amounts Amounts Variance REVENUES Property taxes $ 170,000 $ 170,000 $ 151,666 $ (18,334) EXPENDITURES Administration 34,000 49,600 22,123 27,477 Other expenses 136,000 120,400 28,110 92,290 170,000 170,000 50,233 119,767 NET CHANGE IN FUND BALANCE $ - $ - 101,433 $ (138,101) BEGINNING FUND BALANCE 155,544 ENDING FUND BALANCE $ 256,977 ME CHUBBUCK DEVELOPMENT AUTHORITY SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL HARVEST SPRINGS URBAN RENEWAL DISTRICT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2023 Original Amended Budget Budget Actual Amounts Amounts Amounts Variance REVENUES Property taxes EXPENDITURES Administration Other expenses Grant expense NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE $ 20,000 $ 20,000 $ 16,498 $ (3,502) 5,000 5,000 - 5,000 15.000 15.000 - 15.000 21 16,498 $ (23,502) CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO REQUIRED SUPPLEMENTAL INFORMATION FOR THE YEAR ENDED SEPTEMBER 30, 2023 NOTE 1 - BUDGETARY INFORMATION GENERALFUND The Authority did not budget for the interest revenue that would be received. The Authority did not budget for the inter -fund activity, including inter -fund transfers to the General Fund. The Authority budgeted an excess of funds for administrative expenses. CHUBBUCK URBAN RENEWAL DISTRICT FUND The Authority did not budget sufficient amounts for the following expenditures: Administration 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 Interfund transfers Bond Interest expense and Bond Discount 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 over-estimated the level of revenue from the county. HARVEST SPRINGS URBAN RENEWAL DISTRICT FUND The Authority over-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 City Council approved the Fiscal Year End 2022 budget and previous fiscal years. The Authority approved the Fiscal Year End 2023 budget and will approve future budgets. 22 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, 2023, 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 25, 2024. 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. 23 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 25, 2024 24 LEGAL NOTICE Notice of Public Hearing Urban Renewal Agency of the City of Chubbuck, Idaho a/k/a Chubbuck Development Authority Amended Budget for Fiscal Year 2024 A public hearing for consideration of the Urban Renewal Agency Project amended budget for the fiscal year that begins October 1, 2023 and ends September 30, 2024 will be held in Council Chambers, located at 290 E. Linden Ave, Chubbuck, Idaho, on September 17, 2024, 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 Ashley Squyres, 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 amended budget is required for formal adoption of the amended FY 2024 budget. City Hall is accessible to persons with disabilities. FY 2022 FY 2023 FY 2024 Budgeted Budgeted Budgeted Fund Name Revenues Revenues Revenues Property Tax Revenue (Increment) Chubbuck Improvement Revenue Allocation Fund $ 2,980,000 $ 2,575,000 $ 433 Pine Ridge Revenue Allocation Fund 175,000 297,000 $ 318,000 Northside Crossing Revenue Allocation Fund 90,000 170,000 $228,500 Harvest Springs Revenue Allocation Fund 20,000 40,000 Northgate Revenue Allocation Fund 7 Total Property Tax Revenue $3,245,000 $3,062,000 $ 586,940 Revenue Sources Other Than Property Taxes Chubbuck Improvement Revenue Allocation Fund 55,000 50,000 118,000 Pine Ridge Revenue Allocation Fund - 5000 - Northside Crossing Revenue Allocation Fund Harvest Springs Revenue Allocation $ 18,000 300,000 Fund - - Fund Balance Carryover & Additional $479,143 Revenue- Chubbuck Improvement 1,602,767 Fund Balance Carryover— Northside Crossing 250,643 Agency Administrative Fund Revenues (from districts and other agreements) $73,308 Total Revenues- All Sources $3,300,000 $3,117,000 $ 2,631,658 Fund Name Former Categories (Unused in FY23 and FY24) Admin & Prof Services Dues & Subscriptions Other Capital Outlays Chubbuck Improvement Revenue Allocation Fund Professional Service, Insurance, & Publications Owner Participation Agreements or other Agreements Debt Service Capital Improvements To Administrative Fund Fund Total Pine Ridge Revenue Allocation Fund Administrative Expenses Bond Obligation Fund Total Northside Crossing Revenue Allocation Fund Administrative Expenses & Capital Improvements Owner Participation Agreements or other Agreements Fund Total Harvest Springs Revenue Allocation Fund FY 2022 FY 2023 FY 2024 Budgeted Budgeted Proposed Expenditures Expenditures Expenditures $ 95,500 - - $ 4,600 - - $ 3,000 - - $ 3,196,900 - - $ 65,200 $ 30,000 376,879 1,111,200 420,000 - 1,727,921 $ 580,000 35,000 - $ 2,625,000 $ 1,721,200 15,000 287,000 $ 18,000 300,000 302,000 318,000 34,000 60,139 136,000 419,004 170,000 $479,143 Administrative Expenses & Capital Improvements 5,000 8,000 Owner Participation Agreements or other Agreements 15,000 32,000 Capital Improvements - Fund Total 20,000 40,000 Northgate Revenue Allocation Fund 7 Administrative Fund Office & Financial Administration 14,000 City Administrative Reimbursement 15,000 Legal 18,000 Publications 1,000 Dues & Subscriptions 1,800 Insurance 3,000 To Fund Balance 20,505 Fund Total - 73,308 Total All Expenditures $ 3,300,000 $ 3,117,000 $ 2,631,658 Publish: Deaton & Company, Chartered Certified Public Accountants 215 North 9th, Suite A Pocatello, ID 83201-5278 (208)232-5825 Members cf the Idaho Society of Certified Public Accountants Members of the American Institute of Certified Public Accountants March 10, 2025 Board of Commissioners Chubbuck Development Authority PO Box 5604 Chubbuck, Idaho 83202 We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Chubbuck Development Authority for the year ended September 30, 2024. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards (and, if applicable, Government Auditing Standards and the Uniform Guidance), as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated October 29, 2024. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by Chubbuck Development Authority are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2024. We noted no transactions entered into by Chubbuck Development Authority during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The authority had no estimates reported during the year. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatement Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated March 10, 2025. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to Chubbuck Development Authority's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as Chubbuck Development Authority's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the schedules of budget and actual, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. Restriction on Use This information is intended solely for the information and use of Board of Commissioners and management of Chubbuck Development Authority and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Pocatello, ID CHUBBUCK DEVELOPMENT AUTHORITY STATEMENT OF NET POSITION SEPTEMBER 30, 2024 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2023 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 Current portion of bond payable Noncurrent liabilities Bond payable NET POSITION Restricted for districts Unrestricted Governmental Activities 2024 2023 $ 653,906 $ 2,382,566 4,312 3,593 19,345 16,706 129,028 142,384 806,591 2,545,249 1,260,321 1,260,321 1,260,321 1,260,321 2,066,912 3,805,570 381 2,127 58,781 56,198 59,162 58,325 1,144,102 1,292,891 1,144,102 1,292,891 1,203,264 1,351,216 562,031 2,368,237 301,617 86,117 $ 863,648 $ 2,454,354 The accompanying notes are an integral part of these financial statements 6 CHUBBUCK DEVELOPMENT AUTHORITY STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2024 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2023 EXPENSES General government Chubbuck Urban Renewal District Pine Ridge Mall Urban Renewal District Northside Urban Renewal District Harvest Springs Urban Renewal District NET(EXPENSES)/REVENUE GENERAL REVENUE Property taxes Interest Service and contract revenue Other CHANGE IN NET POSITION BEGINNING NET POSITION ENDING NET POSITION Governmental Activities 2024 2023 $ 44,797 1,679,709 97,709 419,004 $ 44,924 1,620,647 109,347 28,110 2,241,219 1,803,028 (2,241,219) 491,759 40,753 118,000 650,512 (1,590,707) 2,454,354 $ 863,648 (1,803,028) 2,722,800 50,894 5,000 27,074 2,805,768 1,002,740 1,451,614 $ 2,454,354 The accompanying notes are an integral part of these financial statements 7 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. Certain receivables are not current resources and are reported as deferred revenues in the governmental funds Long-term liabilities are not due and payable in the current period and therefore, are not reported in the governmental funds: Bond payable Net Position of Governmental Activities The accompanying notes are an integral part of these financial statements 8 1,260,321 1,260, 321 19,345 16,706 (1,202,883) (1,349,089) $ 863,648 $ 2,454,354 CHUBBUCK DEVELOPMENT AUTHORITY BALANCE SHEET GOVERNMENTALFUNDS SEPTEMBER 30, 2024 WITH COMPARATIVE TOTALS AT SEPTEMBER 30, 2023 Nonmajor Chubbuck Pine Ridge Mall Northside Harvest Springs General Urban Renewal Urban Renewal Urban Renewal Urban Renewal Fund District Fund District Fund District Fund District Fund 2024 2023 ASSETS Cash and cash equivalents $ 220,903 $ 391,101 $ (15) $ 6,424 $ 35,493 $ 653,906 $ 2,382,566 Prepaid expense 4,312 - - - - 4,312 3,593 Property tax receivable - 3,294 - 16,051 19,345 16,706 Restricted cash 25 - 129,003 - - 129,028 142,384 TOTAL ASSETS $ 225,240 $ 394,395 $ 128,988 $ 22,475 $ 35,493 $ 806,591 $ 2,545,249 LIABILITIES Accounts payable $ 381 $ - $ - $ - $ - $ 381 $ 2,127 Grant payable - - - - - Deferred tax revenues - 3,294 16,051 19,345 16,706 381 3,294 - 16,051 - 19,726 18,833 FUND BALANCES Restricted 25 391,101 128,988 6,424 35,493 562,031 2,368,237 Committed - - - - - - - Unassigned 224,834 - - - - 224,834 158,179 224,859 391,101 128,988 $ 6,424 $ 35,493 $ 786,865 $ 2,526,416 TOTAL LIABILITIES & FUND BALANCES $ 225,240 $ 394,395 $ 128,988 $ 22,475 $ 35,493 $ 806,591 $ 2,545,249 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. Certain receivables are not current resources and are reported as deferred revenues in the governmental funds Long-term liabilities are not due and payable in the current period and therefore, are not reported in the governmental funds: Bond payable Net Position of Governmental Activities The accompanying notes are an integral part of these financial statements 8 1,260,321 1,260, 321 19,345 16,706 (1,202,883) (1,349,089) $ 863,648 $ 2,454,354 EXPENDITURES Administration Construction Professional services Other expenses Debt services Principal Interest and fiscal charges Return of surplus funds 14,525 - 17,540 60,138 92,203 134,595 - 736,445 - 419,004 1,155,449 1,254,407 24,000 20,850 - 44,850 26,265 6,272 7,500 13,772 35,834 149,000 149,000 191,000 - 92,374 92,374 104,052 - 914,914 - 914,914 44,797 1,679,709 258,914 479,142 2,462,562 1,746,153 EXCESS OF REVENUES OVER CHUBBUCK DEVELOPMENT AUTHORITY (UNDER) EXPENDITURES 66,662 (1,561,277) (13,378) (250,553) STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 1,167,762 NET CHANGE IN FUND BALANCE 66,662 (1,561,277) (13,378) (250,553) 18,995 (1,739,551) GOVERNMENTAL FUNDS BEGINNING FUND BALANCE 158,197 1,952,378 142,366 256,977 16,498 2,526,416 1,358,654 FOR THE YEAR ENDED SEPTEMBER 30, 2024 6,424 $ 35,493 $ 786,865 $ 2,526,416 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2023 $ (1,739,551) $ 1,167,762 Nonmajor Chubbuck Pine Ridge Mail Northside Harvest Springs General Urban Renewal Urban Renewal Urban Renewal Urban Renewal Fund District Fund District Fund District Fund District Fund 2024 2023 REVENUES Property taxes $ 7 $ 432 $ 241,097 $ 228,589 $ 18,995 $ 489,120 $ 2,713,824 Administration 75,138 - - - - 75,138 117,123 Interest revenue 36,314 - 4,439 40,753 50,894 Other revenue - 118,000 - 118,000 27,074 Service and contract revenue 5,000 111,459 118,432 245,536 228,589 18,995 723,011 2,913,915 EXPENDITURES Administration Construction Professional services Other expenses Debt services Principal Interest and fiscal charges Return of surplus funds 14,525 - 17,540 60,138 92,203 134,595 - 736,445 - 419,004 1,155,449 1,254,407 24,000 20,850 - 44,850 26,265 6,272 7,500 13,772 35,834 149,000 149,000 191,000 - 92,374 92,374 104,052 - 914,914 - 914,914 44,797 1,679,709 258,914 479,142 2,462,562 1,746,153 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 66,662 (1,561,277) (13,378) (250,553) 18,995 (1,739,551) 1,167,762 NET CHANGE IN FUND BALANCE 66,662 (1,561,277) (13,378) (250,553) 18,995 (1,739,551) 1,167,762 BEGINNING FUND BALANCE 158,197 1,952,378 142,366 256,977 16,498 2,526,416 1,358,654 ENDING FUND BALANCE $ 224,859 $ 391,101 $ 128,988 $ 6,424 $ 35,493 $ 786,865 $ 2,526,416 Net change in fund balances -total governmental funds $ (1,739,551) $ 1,167,762 Amounts reported for governmental activities in the statements of activities are different because: Governmental funds only report taxes received within 60 days as current fund revenues. All taxes receivable are treated as revenues in the statement of activities. 2,639 8,976 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 donation (362,203) 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 149,000 191,000 Long term debt discount (2,795) (2,795) Change in Net Position of Governmental Activities $ (1,590,707) $ 1,002,740 The accompanying notes are an integral part of these financial statements 9 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 2023 and was closed in 2024. 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. The Harvest Spring Tax Increment Financing (TIF) District Fund (Harvest Springs District), a special revenue fund, accounts for the Authority's operations within the revenue allocation area of that district. The Harvest Springs District was established in 2023. The revenue generated in the districts' fund are restricted to be used for the district and within the TIF district boundaries. 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 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. 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 sixty 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. 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 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. 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 $ 19,345 $ 1,260,321 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 $ 1,242,000 Long-term Bond Discount (39,117) $ 1,202,883 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. 12 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 3 - Stewardship, Compliance and Accountability (Continued) A. Budgetary information (continued) The Board of the Chubbuck Development Authority is required to hold public meetings in conjunction with adoption of its annual budget. The Authority approved the 2024 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. NOTE 4 - Detailed Notes on All Funds A. Deposits and investments Cash and cash equivalents at year-end consist of the following: Deposits Cash in bank Escrow Outstanding checks The Authority has no investments. Bank Book $ 734,923 $ 653,931 129,003 129,003 (80,992) - $ 782,934 $ 782,934 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, 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 is $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 $ 1,260,321 $ - $ - $ 1,260,321 $ 1,260,321 $ - $ - $ 1,260,321 13 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 4 - Detailed Notes on All Funds (Continued) 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. 2. Property Tax Receivable and Deferred Property Taxes At yearend, property tax receivable and deferred tax revenues consisted of the following: General fund Chubbuck Urban Renewal District Fund Pine Ridge Mall Urban Renewal District Fund Northside Crossing TIF District Fund Harvest Springs TIF District Fund Receivables Deferred Tax 3,294 16,051 3,294 16,051 $ 19.345 $ 19.345 D. Long-term Debt 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 Annual Debt Service Requirements Year Ending September 30, 2025 2026 2027 2028 2029 2030-2034 2035-2038 Face Value Discount Book Value $ 58,781 $ 2,794 $ 55,987 1,183,219 36,323 1,146,896 $ 1,242,000 $ 39,117 1,202,883 Beginning Ending Balance Additions Reductions Balance $ 1,391,000 $ - $ (149,000) $ 1,242,000 (41,911) - 2,794 (39,117) $ 1,349,089 $ - $ (146,206) $ 1,202,883 14 Principal Interest Total $ 58,781 $ 82,859 $ 141,640 62,815 78,825 141,640 67,127 74,513 141,640 71,735 69,905 141,640 76,658 64,982 141,640 469,824 238,376 708,200 435,060 60,680 495,740 $ 1,242,000 $ 670,140 $ 1,912,140 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO FINANCIAL STATEMENTS NOTE 5 - Other Information A. Contingent liabilities 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 10, 2025, the date the financial statements were available to be issued. During the year the Authority closed out the Chubbuck Urban Renewal District, however, there were outstanding projects and expenditures that were completed and finalized after the close of the district. C. Tax abatement During the year the Authority was not subject to any tax abatements. 15 REQUIRED SUPPLEMENTARY INFORMATION 16 CHUBBUCK DEVELOPMENT AUTHORITY SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL GENERALFUND FOR THE YEAR ENDED SEPTEMBER 30, 2024 REVENUES Property taxes Interest revenue Other revenue EXPENDITURES Administration Professional services Other expenses NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Original Amended Budqet Budqet Actual $ - $ 7 $ 7 $ - - - 36,314 36,314 34,800 58,308 75,138 16,830 34,800 58,315 111,459 53,144 14,000 14,000 14,525 (525) 19,000 19,000 24,000 (5,000) 1,800 25,312 6,272 19,040 34,800 58,312 44,797 13,515 $ - $ 3 66,662 $ 66,659 158,197 $ 224,859 17 CHUBBUCK DEVELOPMENT AUTHORITY SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL CHUBBUCK URBAN RENEWAL DISTRICT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2024 Original Amended Budget Budget Actual Amounts Amounts Amounts Variance REVENUES Property taxes $ - $ 433 $ 432 $ (1) Miscellaneous revenue - 118,000 118,000 - - 118,433 118,432 (1) EXPENDITURES Construction - - 736,445 (736,445) Grants - 30,000 20,850 9,150 Professional services - - - - Other expenses - - 7,500 (7,500) Return of surplus funds - - 914,914 (914,914) - 30,000 1,679,709 (1,649,709) NET CHANGE IN FUND BALANCE $ - $ 88,433 (1,561,277) $ (1,649,710) BEGINNING FUND BALANCE 1,952,378 ENDING FUND BALANCE $ 391,101 18 CHUBBUCK DEVELOPMENT AUTHORITY SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL PINE RIDGE MALL URBAN RENEWAL DISTRICT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2024 Original Amended Budget Budget Actual Amounts Amounts Amounts Variance REVENUES Property taxes $ 315,000 $ 318,000 $ 241,097 $ (76,903) Interest revenue - - 4,439 4,439 315,000 318,000 245,536 (72,464) 01»kgIQ1101:7*[ Administration 15,000 18,000 17,540 460 Debt services Principal 300,000 300,000 149,000 151,000 Interest and fiscal charges - - 92,374 (92,374) 315,000 318,000 258,914 59,086 REVENUES OVER (UNDER) EXPENDITURES - - (13,378) (13,378) NET CHANGE IN FUND BALANCE $ - $ - (13,378) $ (13,378) BEGINNING FUND BALANCE 142,366 ENDING FUND BALANCE $ 128,988 19 CHUBBUCK DEVELOPMENT AUTHORITY SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL NORTHSIDE CROSSING URBAN RENEWAL DISTRICT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2024 REVENUES Property taxes EXPENDITURES Administration Construction Grant expense NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Original Amended Budget Budget Actual Amounts Amounts Amounts Variance $ 170,000 $ 228,500 $ 228,589 $ 34,000 60,139 60,138 136,000 419,004 419,004 $ - $ (250,643) (250,553) $ 256,977 20 :• 1 CHUBBUCK DEVELOPMENT AUTHORITY SCHEDULE OF REVENUES AND EXPENDITURES - BUDGET AND ACTUAL HARVEST SPRINGS URBAN RENEWAL DISTRICT FUND FOR THE YEAR ENDED SEPTEMBER 30, 2024 Original Amended Budget Budget Actual Amounts Amounts Amounts Variance REVENUES Property taxes EXPENDITURES Administration Other expenses Grant expense NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE $ 40,000 $ 40,000 $ 18,995 $ (21,005) 8,000 8,000 - 8,000 32.000 32.000 - 32.000 21 18,995 $ (61,005) 16,498 CHUBBUCK DEVELOPMENT AUTHORITY NOTES TO REQUIRED SUPPLEMENTAL INFORMATION FOR THE YEAR ENDED SEPTEMBER 30, 2024 NOTE 1 -BUDGETARY INFORMATION GENERALFUND The Authority did not budget sufficient expenditures for administration and professional services. These additional expenditures were paid with decreased expenditures in other expenses. CHUBBUCK URBAN RENEWAL DISTRICT FUND The Authority did not budget sufficient amounts for the following expenditures: Construction Other expense Return of surplus funds The under -budgeted expenditures were paid using available fund balances PINE RIDGE MALL URBAN RENEWAL DISTRICT FUND The Authority did not budget sufficient amounts for the following expenditures: Other expenses Bond interest expense The under -budgeted expenditures were paid using revenues in excess of budget and NORTHSIDE CROSSING URBAN RENEWAL DISTRICT FUND The Authority over-estimated both the administrative and grant expenses. The Authority over-estimated the level of revenue from the county. HARVEST SPRINGS URBAN RENEWAL DISTRICT FUND The Authority over-estimated the level of revenue from the county. NOTE 2 - LEGAL ADOPTION OF BUDGET In accordance with Title 50, Chapter 20 of the Idaho State Code, the Agency is required to prepare, approve and adopt an annual budget for filing with the local governing body, for informational purposes. A budget means an annual estimate of revenues and expenses for the following fiscal year of the Agency. The Authority approved the fiscal year end 2024 budget and will approve future budgets. 22