Document Jerome_doc_1e15aa1c60

Jerome urban renewal agency 2025 Annual Report Jerome Urban Renewal Agency To create opportunities for economic growth through public improvements and neighborhood redevelopment. ---PAGE BREAK--- Jerome urban renewal agency I. EXECUTIVE SUMMARY The following summaries identify the major activity that was undertaken in the 2025 calendar year by the Jerome Urban Renewal Agency (“JURA” or “Agency”). Area 3 Projects  Redevelopment of the corner of Main Street and North Lincoln o In January the Agency the City of Jerome gave ownership of the 3-acre portion of Block 55 and 56. The Agency completed a property exchange with College of Southern Idaho (CSI). In exchange for the 3-acres the JURA received a building and land on the northwest corner of Main and North Lincoln which is adjacent to the JURA property on West Main Street. o In October, based on the Highest and Best Use study completed by Clearwater Financial LLC of the JURA property newly acquired and existing property on Main Street and North Lincoln, a request for proposals to redevelop the property was put out to the public with a deadline of December 15, 2025. One proposal was received by Starr Corporation and will be reviewed by the Agency board in 2026. o During 2025, JURA expended $15,400 in funds related to this project.  Blocks 55 56 and 66 Development Project o Commercial Development Component:  In 2024 CSI broke ground on an educational facility. In purchasing the land, CSI, the City of Jerome, and JURA entered into a property exchange agreement. The exchange, involving property on West Main Street, was finalized in January of 2025. o Housing Development Component:  The Exclusive Right to Negotiate Agreement with Ag Land Development for the proposed housing project on land west of the CSI development expired in December 2025. The Agency anticipates that completion of the CSI facility, along with future redevelopment of the Main Street and North Lincoln property, will strengthen market interest and result in a more successful Request for Proposals process at a later date. o No JURA funds were expended on either component of this project during 2025.  Downtown Streetscape and Infrastructure Project o In 2022, $3,770,044 was financed to support the redevelopment of Jerome downtown streetscapes and other critical infrastructure. The project was broken into two phases. o Phase 1 - A and Alder improvements:  Redevelopment of the three blocks of East Avenue A and Alder Street was completed in 2025. The project enhanced the streetscape.  $500,000 of the project was funded by the Community Development Block Grant awarded to the City of Jerome.  JURA contributed $763,731 in bond funds to complete the project. o Phase 2 – Main Street improvements between Birch and Buchanan:  The Idaho Department of Transportation agreed to coordinate the reconstruction of the highway pavement and state-owned signal with the JURA’s Main Street streetscape project. The City of Jerome is working with JUB Engineering to design to encompass both projects. As of December 2025, the design is in the final phase and staff expects the project to be ready for bidding in January or February of 2026.  The Agency has contributed $392,361 to the design of the project in 2025. ---PAGE BREAK--- Jerome urban renewal agency Area 4 Projects  Yakima Reconstruction o In August of 2025, JURA obtained financing of $5,110,000 to reconstruct both the mile of Yakima Road between South Lincoln and S. Tiger Drive and the intersection of Yakima and South Lincoln. o In December Resolution 07-25 was approved, an agreement that the City of Jerome would plan, design and be the construction management for the project and that the Agency would reimburse the City for the costs incurred. o No JURA funds were distributed for this project in 2025. Area 5 Projects  South Side (Founders’ Park) o A ribbon cutting for South Side, now named Founders’ Park, was held on August 29, 2025. o There are some lot line adjustments that must occur before the JURA can donate the park to the Jerome Recreational District (Rec District) and these were not able to be finalized prior to December 31, 2025. The transfer to the Rec District is expected to occur mid-2026. o The Agency contributed $1,063,058 to the park project in 2025.  Gravity Sewer Line Project o The Request for Proposals for the project was issued in February. Three bids were received and the contract was awarded to the lowest bidder, Idaho Site Works. o Work began on the project in May and it is expected to be completed in the spring of 2026. o $374,317 of JURA funds were expended on this project during 2025. Other Activities  Economic Development Reimbursement Agreements o JURA utilizes reimbursement agreements to promote economic development within the Agency’s defined areas. The agreements are with developers and businesses that have projects within the URA areas that include construction or improvement of public infrastructure or a desired remediation of a property. Each agreement establishes a base assessed value of the parcels involved in the project and a maximum amount of eligible costs to be reimbursed. Typically, the agreement payment terms are 75% of the tax increment generated from the completed project. The agreements also establish that the reimbursement payments are subordinate to any existing and future Agency obligations including, but not limited to, tax increment bonds. o In 2025 there are four signed agreements with at least one in each JURA Area. They are:  Area 3 – Jerome Pacific Associates LP – The Lincoln Commons housing project which included improvement of public infrastructure was completed in 2024 and the first reimbursement of $11,875 was paid in July.  Area 4 – Nelson Jameson – Constructed a distribution center which included remediation and mitigation of a deteriorating area consistent with the Area plan was completed in 2025. The first payment is expected to be paid in March of 2026.  Area 4 – Idaho Milk Products – Construction of an ice cream plant which includes upgrades to the dilapidated project site. This project is expected to be completed in 2026 and the first reimbursement payment to be made in 2027.  Area 5 – Actus Nutrition/Milk Specialties Global – Constructed a manufacturing facility and redeveloped deteriorating area of the JURA designated area. The project was completed in 2024. The first reimbursement payment of $413,512 was paid with JURA funds in July. ---PAGE BREAK--- Jerome urban renewal agency II. MAP OF THE JEROME URBAN RENEWAL DISTRICTS The map below indicates the boundaries of the three active plan areas the Agency has established. ---PAGE BREAK--- Jerome urban renewal agency III. ORGANIZATION AND MISSION Mission and Vision To revitalize and improve the quality of life for Jerome; to create opportunities for economic growth through public improvements and neighborhood redevelopment. Currently, the agency oversees three different plans: Area 3, Area 4, and Area 5. The City of Jerome established the Jerome Urban Renewal Agency in 1998 with the formation of the South Lincoln Plan (Area On July 7, 2011, the JURA Board voted to close the South Lincoln Area (Area 1) by September 30, 2012 which was 10 years earlier than required by state law. In late 2005, the Agency established the Southeast Industrial Area (Area which is now home to Idaho Milk Products, Scott Jackson Trucking, Scoular, Specialty Sales and Scoular Emerge. In June 2022, the Agency Board determined all plan goals had been met and voted to close Southeast Industrial Area (Area 2) by September 30, 2022 which is 7 years earlier than required by state law. In 2013, the agency hired Kushlan Associates, a consulting firm, to assist with the eligibility report and economic feasibility study related to Area 3. The study was completed in 2014 and the Agency established Area 3 in December 2014. The area takes in all of W. Main to Interstate 84 within the City limits. This area would encompass some of the most dilapidated and blighted areas of Jerome. In 2014, the Agency also amended the Southeast Industrial Area (Area 2) to eliminate the unfunded portion, which then became the new Area 4. Finally, Area 5 was established in December of 2018 after Kushlan Associates assisted with the eligibility report and economic feasibility study. Kushlan was hired again in 2023 to assist with the eligibility report and supplemental economic feasibility study to annex additional land into Area 5. This amendment was completed in April of 2023. The Agency Board of Commissioners is currently comprised of five appointed individuals:  Kathy Cone, Chair  Shonna Fraser, Vice-Chair  Jason Peterson  Brandon J. (BJ) Hess  Bryan Craig Professional staff for the agency is comprised of both City of Jerome staff members and outside consultants hired by the Agency. Legal counsel is provided by Meghan Conrad with Elam and Burke. City staff is comprised of Mike Williams, Executive Director, Ross Hyatt, Finance Director, Lori McCrae, Accounting & Budget Manager, Bernadette Coderniz, Administrative Clerk, and Tyson Carpenter, City Engineer. ---PAGE BREAK--- Jerome urban renewal agency IV. STRATEGIC PRIORITIES As part of its budgeting process in 2025, the Agency identified major areas of importance and outlined basic objectives for the agencies focus. Priority Objectives:  12 Month Plan o Begin development negotiations for the empty lots and building owned by JURA on Main Street. o Develop Block 55 and 66 o Continue to support and fund opportunities to drive traffic downtown  CSI Educational Center, Streetscape improvements  Redevelopment of bare property and old building on corner of Main Street & North Lincoln. o Continue marketing Area 4 and 5 as the prime location in the Magic Valley for industrial expansion. o Finalize the park project in Area 5.  Long Term Directives o Acquire empty buildings and open spaces within Area 3 o Improve parking opportunities in Area 3 o Improve west entrance to Jerome for economic development and redevelopment o Maintain adequate water and sewer capacity for economic development o Support walkability and connectivity between key gathering points in the City and URA areas V. TAX INCREMENT REVENUE: 2025 The only source of Agency revenue, other than interest on interest bearing accounts, is property taxes generated within the tax increment revenue allocation areas. In 2013 the Idaho Legislature approved legislation to provide personal property tax relief to all Idaho businesses while replacing the revenue losses for local governments, including Urban Renewal Agencies. At the conclusion of calendar year 2025, the total Tax Increment Revenue received by the Agency was $1,307,282. $464,312 for the Downtown Improvement Project Area, $67,669 for Area 4, and $775,301 for Area 5. The following chart shows a summary of revenue received for the 2025 calendar year: Urban Renewal Area Revenue Received in 2025 Downtown Improvements Project (Area 3) Area 4 Area 5 $ 464,312 $ 67,669 $ 775,301 TOTAL $1,307,282 ---PAGE BREAK--- Jerome urban renewal agency VI. JEROME URBAN RENEWAL DISTRICTS  South Lincoln District - Closed o The Jerome City Council formally approved the South Lincoln Urban Renewal Plan in December of 1998 through Ordinance No. 870. The plan was amended and restated as follows: November 1999 through Ordinance No. 887, December 2000 through Ordinance No. 903, and March 2003 through Ordinance No. 940. The base value for the district was $5,992,823. A copy of the complete plan with all amendments is available in the Office of the Jerome City Clerk, 152 East Ave. A, Jerome, ID. In 2012, the Agency closed the area. The increment value at the time of the area closing was $72,898,146.  Southeast Industrial Area - Closed o The Jerome City Council formally approved the Southeast Industrial Urban Renewal Plan in December of 2005 through Ordinance No. 986. The plan was amended and restated in December 2014 through Ordinance No. 1133. The adjusted base value for the district is $1,221,754. The copy of the plan is available in the Office of the Jerome City Clerk, 152 East Ave. A, Jerome, ID. The Agency closed the area in September 2022. The increment value at the time of closing was $124,187,983.  Area 3 o The Jerome City Council formally approved the Urban Renewal Plan for Area 3 in December 2014 through Ordinance No. 1135. The adjusted base value for the district is $38,093,940. The copy of the plan is available in the Office of the Jerome City Clerk, 152 East Ave. A, Jerome, ID.  Area 4 o The Jerome City Council formally approved the Urban Renewal Plan for Area 3 in December 2014 through Ordinance No. 1134. The adjusted base value for the district is $316,935. The copy of the plan is available in the Office of the Jerome City Clerk, 152 East Ave. A, Jerome, ID.  Area 5 o Area 5 was adopted by the Jerome City Council in December 2018 through Ordinance No. 1172. The base value for the district is $5,253,824. The plan was amended and restated in April of 2023 through Ordinance No. 1120. The copy of the plan is available in the Office of the Jerome City Clerk, 152 East Ave. A, Jerome, ID VII. SUMMARY OF INCREMENT VALUE OF JURA DISTRICTS District Adjusted Base Value (2019) Increment Value (2025) Area 3 $ 38,093,940 $ 45,277,997 Area 4 $ 316,935 $ 7,050,974 Area 5 $ 5,253,824 $ 67,139,189 ---PAGE BREAK--- Jerome urban renewal agency In 2025 the total increment value of the Agency increased by $58,695,055. This is a 95.6% overall increase. All three areas had large increase in the increment values. The largest in both increment and dollars was seen in Area 5. The increment value increased by $47,712,404 which is a 245.6% increase from the previous year. In addition, Area 4 increased by $3,644,826, or 107% from the previous year and Area 3 increment value increased by $7,337,825 which is a 19.34% increase from 2024. VIII. PROJECT PRIORITIES AND ALLOCATIONS FOR FY 2026 As part of our normal practice, any fund balance is allocated to the capital improvement line item in the budget to have available for unanticipated projects. Project District Budgeted Cost Explanation Infrastructure Area 3: Downtown $ 3,103,820 Downtown streetscape improvements Infrastructure Area 4 $ 4,539,000 Yakama reconstruction project Infrastructure Area 5 $ 2,289,713 Gravity sewer line (Nez Perce to H) project TOTAL PROJECT COSTS $ 9,932,533 IX. LEGAL REQUIREMENTS AND ADDITIONAL DOCUMENTATION Under the Idaho Urban Renewal Law, an urban renewal agency is required to file with the local governing body, on or before March 31 of each year, a report of its activities for the preceding calendar year. By virtue of amendments the Idaho Urban Renewal Law adopted in 2022 the Annual Report shall include the financial data and audit reports required under sections 67-1075 and 67-1076, Idaho Code. Idaho Code 67-1076(2)(b), outlines the financial data to include the most recent adopted budget, an informal budget to actual revenues and expenditures for the most recently completed year, the date of the last independent audit, and bond or other debt obligation information. In 2002, the Idaho Urban Renewal Law was amended to establish the fiscal year of an urban renewal agency as October 1st through September 30th. Therefore, all budget and informal financial data represented is for the fiscal year 2025 and last audit was completed in March of 2025 for the fiscal year ending September 30, 2024. In accordance with new reporting requirements under Idaho Code Section 67-1056 the Agency must submit certain information to the online central registry and reporting portal by December 1. The Agency filed to this portal the adopted budget for fiscal year ending September 30, 2025 as well as the audit report for fiscal year ending September 30, 2024 prior to the statutory deadline of December 1, 2025. Public Involvement and Outreach On March 26, 2026 at 3:00 p.m., this annual report was officially presented to the public at a special meeting of the Jerome Urban Renewal Agency. In presenting this annual report, the Agency sought to engage the public for comment through several outreach mediums. Advertisement of the presentation of the annual report was accomplished by these methods:  Posted on the City of Jerome Facebook page (City of Jerome, Idaho)  Advertised on the City Website (cityofjerome.org) ---PAGE BREAK--- Jerome urban renewal agency Fiscal Year Financial Statement (Audited) Under Idaho Code section 67-450B, all local government entities must complete an audit of its statements within nine months after the conclusion of its fiscal year. In March of 2025, the Agency received a report from Workman & Company expressing an opinion on the audit of the agency’s financial statements for Fiscal Year 2024. In this auditor’s opinion, the financial statements present fairly the financial position of the agency in conformity with accounting principle generally accepted in the United States of America. This report identifies the Agency’s assets, liabilities, income, and expenses through September 30, 2024. A copy of the Agency’s 2024 audited financial statements is attached for purposes of review and comment and is also available on the City of Jerome’s website at cityofjerome.org Budget The Agency is also required to formally adopt its fiscal year budget by September 1 of each year. The Agency adopted its FY 2024-2025 Budget on August 27, 2025. As required by the Idaho Urban Renewal Law and Local Economic Development Act, the Agency has filed its budget with the City of Jerome. Copies of the budget are available through the Agency’s offices. X. APPENDIX  The Jerome Urban Renewal Agency Financial Statements for FY 2024 (Audit)  Unaudited Balance Sheet (FY 2024-2025, Period Ended 9/30/2025)  Unaudited Revenue/Expense Final Budget vs Actual Report (FY 2024-2025, Period Ended 9/30/2025)  Unaudited Bonds and Long-Term Debt Schedule (FY 2024-2025, Period Ended 9/30/2025) ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY A COMPONENT UNIT OF THE CITY OF JEROME, IDAHO FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2024 ---PAGE BREAK--- TABLE OF CONTENTS PAGE Independent Auditors’ Report 1-3 Management’s Discussion and Analysis 4-9 Basic Financial Statements: Government-wide Financial Statements: Statement of Net 10 Statement of Activities 11 Fund Financial Statements: Governmental Funds: Balance Sheet 12 Statement of Revenue, Expenditures and Changes in Fund Balance 13 Notes to Financial Statements 14-22 Required Supplementary Information: Budgetary Comparison Schedules 23-25 Notes to Required Supplementary Information 26 Independent Auditors’ 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 27-28 ---PAGE BREAK--- 2190 Village Park Avenue, Suite 300 • Twin Falls, ID 83301 • [PHONE REDACTED] • Fax: [PHONE REDACTED] INDEPENDENT AUDITOR’S REPORT April 15, 2025 To the Board of Commissioners Jerome Urban Renewal Agency Jerome, Idaho Opinions We have audited the accompanying financial statements of the governmental activities of the Jerome Urban Renewal Agency, as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the Jerome Urban Renewal Agency’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component unit, each major fund, and the aggregate remaining fund information of the Jerome Urban Renewal Agency, as of September 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America. 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 Jerome Urban Renewal Agency, 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 opinions. 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, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 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 Jerome Urban Renewal Agency’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. 1 ---PAGE BREAK--- Report Continued— Auditor’s Responsibility 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 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 aggregate, they would influence the judgement made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted 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 Jerome Urban Renewal Agency’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 Jerome Urban Renewal Agency’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 planning scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and the budgetary comparison information on pages 4–9 and 23–25 be presented to supplement the basic financial statements. Such 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. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about 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. 2 ---PAGE BREAK--- Report Continued— We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated April 15, 2025, on our consideration of the Jerome Urban Renewal Agency’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 City’s internal control over financial reporting and compliance. . Workman & Company Certified Public Accountants Twin Falls, Idaho 3 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY MANAGEMENT’S DISCUSSION AND ANALYSIS For Year Ended September 30, 2024 I. Background. The City of Jerome Urban Renewal Agency offers readers an overview of its financial activities in a narrative form called the “Management’s Discussion and Analysis.” This report highlights the general fiscal health of the Agency, outlines key financial decisions that were initiated by the Agency’s leadership and identifies future financial priorities and activities. In order to fully understand the financial statements included in the Agency’s Audit, residents should first read the Management’s Discussion and Analysis document. It is our goal that through its reading, our citizens will be better informed and involved. II. Understanding this Report. This Management’s Discussion and Analysis report is broken into three major components that include Government-wide financial statements which provide information for the Agency as a whole; fund financial statements which provide detailed information for the Agency’s significant funds; and notes to the financial statements which provide additional information that is essential to understanding the government-wide and fund statements. This report covers the Fiscal Year that began on October 1, 2023 and ended on September 30, 2024. It provides financial comparisons and analyzes financial trends, designed to provide the reader with better understanding of the Agency’s overall financial health. The Agency’s financial statements are broken into two categories: Government-Wide Financial Statements and Fund Financial Statements. a. Government-Wide Financial Statements. Government-wide financial statements, presented on pages 10-11 of the financial statements, are designed to provide readers with a broad overview of the Agency’s finances, in a manner similar to a private sector business. The statement of net position presents information on all of the City of Jerome Urban Renewal Agency’s assets and liabilities with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Agency is improving or deteriorating. In other words, it will help to show the solvency of the Agency. The statement of activities presents information showing how the government’s net position and liabilities changed during the most recent fiscal year. All changes in net position are reported as they occur, regardless of the timing of related cash flows. This is accrual accounting and thus, revenues and expenditures are reported in this statement for some items that might not reflect actual cash flows until future fiscal periods. The government-wide financial statements include all of the Agency’s services, which are primarily supported by property taxes (tax increment revenue) and interest income. The Agency has no business-type activities. The governmental activities of the City of Jerome Urban Renewal Agency include general government administration and operations. 4 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY MANAGEMENT’S DISCUSSION AND ANALYSIS For Year Ended September 30, 2024 b. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been separated for specific activities or objectives. Government Funds. Government funds are used to account for essentially the same activities as previously identified under governmental activities in the government-wide financial statement. However, unlike the government-wide financial statements, governmental fund financial statements, presented on pages 12-13 of the financial statements, focus on near- term inflows and outflows of Agency liquid resources as well as balances of liquid resources at the end of the fiscal year. Such information is helpful when determining the Agency’s near-term financing requirements and health. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for both as readers may better understand the long-term impact of the government’s near-term financing decisions. The City of Jerome Urban Renewal Agency currently maintains three governmental funds. Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for these major funds. The Agency adopts an annual budget. Budgetary comparison statements for all 3 fund areas are found on Pages 23 to 25. Revenues exceeded expenditures by $199,045 for Area 3 and by $34,598 for Area 4. Area 5 had expenditures and other uses exceed revenues and other sources by $1,516,839. If the reader comes upon “Notes to the Financial Statements” or “Other Information,” these sections are to provide additional narrative and required supplementary information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. III. Health of the Agency – Financial Statements Overview a. Government-Wide Financial Analysis. One important question to ask about the Agency’s finances is, “Is the Agency better or worse off as a result of the previous year’s activities?” The information in the government-wide financial statement helps answer this question because it captures all agency assets and liabilities using the accrual basis of accounting. In this way, all of the Agency’s financial transactions both in revenues and expenditures are captured for the long-term and the near-term and one can see the true financial health of the Agency. 5 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY MANAGEMENT’S DISCUSSION AND ANALYSIS For Year Ended September 30, 2024 For the City of Jerome Urban Renewal Agency for the Fiscal Year 2024, changes in governmental assets and liabilities were as follows: As indicated in Table 3.1, for the year ended September 30, 2024, cash and investments made up 13% of the Agency assets. In the past all purchased assets were donated to the City of Jerome. However, in recent years the Agency has purchased property with the intent to improve the land to be more appealing to developers and will eventually sell it to a private party. Also, the Agency purchased and is developing property into a sports and recreational park. The asset will be held until completed and then donated to the Jerome Recreational District. At the end of the fiscal year, the Agency is able to report a positive net position of $2,638,571. When looking at the Agency’s net position, the other area to look at is the restricted and unrestricted totals. The $8,112,914 designated as restricted funds represent amounts that are subject to external restrictions on how they may be used. These assets are related to debt service required for the issuance of revenue related debt, the bond proceeds restricted for infrastructure construction projects in Area 3 and Area 5, and ARPA grant funds from the City of Jerome restricted for the Southside Park project in Area 5. 6 Table 3.1 Net Position Governmental Governmental Total Total Activities Activities FY 2023 FY 2024 FY 2023 FY 2024 Current Assets Cash and Investments $739,989 $1,468,578 $739,989 $1,468,578 Restricted Assets $9,629,325 $8,112,914 $9,629,325 $8,112,914 Non Current Assets $1,198,525 $2,140,308 $1,198,525 $2,140,308 Total Assets $11,567,839 $11,721,800 $11,567,839 $11,721,800 Current Liabilities Payables and Deposits $288,022 $783,213 $288,022 $783,213 Current Portion LTD $135,326 $87,595 $135,326 $87,595 Non-Current Liabilities $8,300,016 $8,212,421 $8,300,016 $8,212,421 Total Liabilities $8,723,364 $9,083,229 $8,723,364 $9,083,229 Net Position: Invested in Capital Assets $1,198,525 $2,140,308 $1,198,525 $2,140,308 Restricted $9,629,325 $8,112,914 $9,629,325 $8,112,914 Unrestricted ($7,983,375) ($7,614,651) ($7,983,375) ($7,614,651) Total Net Position: $2,844,475 $2,638,571 $2,844,475 $2,638,571 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY MANAGEMENT’S DISCUSSION AND ANALYSIS For Year Ended September 30, 2024 Table 3.2, Change in Net Position, reflects the overall change in net position for the City of Jerome Urban Renewal Agency. For the fiscal year 2024, the Agency’s total revenues were $1,301,004 while total expenses were $1,506,908. The Agency reports a decrease in net position of $205,904. A more detailed accounting of the fund activities can be found on page 13 of the audit. b. Fund Financial Analysis. As noted earlier, the City of Jerome Urban Renewal Agency uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Government Funds. The focus of the Agency’s governmental fund reporting is to provide information on near-term inflows, outflows, and balances of spendable resources. Perhaps the key area to look at in government fund balance sheets is the final unrestricted fund balance as they indicate resources available for spending at the end of the fiscal year. At the end of fiscal year 2024, the Agency reported a positive fund equity balance of $8,831,118 of which $718,204 is committed for spending by the Agency. The remainder of the fund balance of $8,112,914 is restricted to indicate that it is not available for new spending because it has already been reserved to pay for debt service and infrastructure construction projects. In summary, the City of Jerome Urban Renewal Agency is financially healthy with a combined total of $8,831,118 in restricted and committed assets. 7 Table 3.2 Change in Net Position Governmental Governmental Total Total Activities Activities FY 2023 FY 2024 FY 2023 FY 2024 Revenues Program Revenues: Capital grants and contributions $2,238,908 $140,954 $2,238,908 $140,954 General Revenues: Property Taxes $546,075 $608,893 $546,075 $608,893 Investment Earnings $430,642 $551,157 $430,642 $551,157 Total Revenues $3,215,625 $1,301,004 $3,215,625 $1,301,004 Expenses Urban Renew al Projects: Dow ntow n Area 3 $0 $12,967 $0 $12,967 Area 4 $0 $0 $0 $0 Area 5 $968,893 $1,001,814 $968,893 $1,001,814 Cash to County for Area 2 closure $42,093 $0 $42,093 $0 Support Services $108,128 $93,414 $108,128 $93,414 Interest on long-term liabilities $399,220 $398,713 $399,220 $398,713 Total Expenses $1,518,334 $1,506,908 $1,518,334 $1,506,908 Change in Net Position $1,697,291 ($205,904) $1,697,291 ($205,904) Net Position - beginning as reported $1,147,184 $2,844,475 $1,147,184 $2,844,475 Net Position - ending $2,844,475 $2,638,571 $2,844,475 $2,638,571 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY MANAGEMENT’S DISCUSSION AND ANALYSIS For Year Ended September 30, 2024 IV. Capital Assets and Debt Management Administration a. Capital Assets. Historically capital assets such as streets, street improvements, water, sewer, and other capital improvements, which the Agency pays for, are donated to the City of Jerome, Idaho. Over past several years the Agency purchased real property and will not be donating it to the City. The purchased land in Area 3 will be held for resale at a later date while the land purchase in fiscal year 2022 is being developed as a park and be donated to the Jerome Recreation District of Jerome, Idaho. There were no major assets paid for by the Agency and donated to the City of Jerome or other entities in fiscal year 2024. b. Debt Management and Administration. As of September 30, 2024, the Agency had total debt of $8,300,016. This amount reflects revenue bond debt and loan proceeds to pay the cost of acquisition and construction of various urban renewal projects. The table of long-term debt is as follows: The City of Jerome Urban Renewal Agency pledges the incremental tax revenues and all funds in the bond fund and the debt service reserve fund for the payment of the bonds. V. Fiscal Year 2025 Fiscal Priorities In August of 2024, the City of Jerome Urban Renewal Agency Commissioners and City Staff developed the Fiscal Year 2025 spending priorities to help focus the efforts of the Agency’s resources in the current fiscal year that began on October 1, 2024 and ends on September 30, 2025. Those priorities and their associated dollar amounts are as follows: 8 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY MANAGEMENT’S DISCUSSION AND ANALYSIS For Year Ended September 30, 2024 As an urban renewal agency operating in the State of Idaho, the Agency’s revenue flexibility is quite limited, but conversely, quite stable. Property tax resources flow to the agency through the tax increment process of “revenue allocation” as it is termed in Idaho law. The City of Jerome Urban Renewal Agency currently has three active revenue allocation areas. Area 3 is called the “Downtown Improvement Project Area. As well as Area 4 and Area 5 that have not yet been assigned project names. Previously the Agency had two other revenue allocation areas. The South Lincoln Project Area was terminated September 30, 2014 and the Southeast Industrial Project Area, commonly known as Area 2, was terminated September 30, 2022. Conclusion. This financial report is designed to provide a general overview of the City of Jerome Urban Renewal Agency’s finances for all those with an interest in the government’s finances and activities. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Mike Williams, Executive Director, 152 East Avenue A, Jerome, Idaho 83338. Mike Williams Executive Director City of Jerome Urban Renewal Agency 9 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY STATEMENT OF NET POSITION SEPTEMBER 30, 2024 The accompanying notes are an integral part of the financial statements 10 Governmental ASSETS: Activities Cash and Investments 1,468,578 $ Restricted assets: Cash and investments 8,112,914 Capital assets: Land and construction in progress 2,140,308 Total Assets 11,721,800 LIABILITIES: Accounts payable - trade and other accrued liabilities 735,374 Refundable Deposits 15,000 Interest payable 32,839 Long-term liabilities: Current portion 87,595 Noncurrent portion 8,212,421 Total Liabilities 9,083,229 NET POSITION Net investment in capital assets 2,140,308 Restricted for debt repayment and construction projects 8,112,914 Unrestricted (7,614,651) Total Net Position 2,638,571 $ ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2024 The accompanying notes are an integral part of the financial statements 11 Operating Capital Charges for Grants and Grants and Governmental Functions/Programs: Expenses Services Contributions Contributions Activities Governmental Activities: Urban renewal projects 1,014,781 $ - $ - $ 140,954 $ (873,827) $ Support services 93,414 - - - (93,414) Interest on long-term liabilities & obligations 398,713 - - - (398,713) Total governmental activities 1,506,908 $ - $ - $ 140,954 $ (1,365,954) General Revenues: Property taxes 608,893 Unrestricted investment earnings 551,157 Refunds and reimbursements - Total general revenues 1,160,050 Change in net position (205,904) Net position beginning of year 2,844,475 Net position-ending 2,638,571 $ Net (Expense) Revenue and Changes in Net Position Program Revenues ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY BALANCE SHEET - GOVERNMENTAL FUNDS SEPTEMBER 30, 2024 The accompanying notes are an integral part of the financial statements 12 Downtown Improvements Project Total Area 3 Area 4 Area 5 Governmental ASSETS: Pooled cash and investments 281,791 $ 133,134 $ 1,053,653 $ 1,468,578 $ Restricted Cash: Construction funds 4,172,755 - 3,495,971 7,668,726 Debt service reserve funds 214,705 - 229,483 444,188 TOTAL ASSETS 4,669,251 $ 133,134 $ 4,779,107 $ 9,581,492 $ LIABILITIES: Accounts payable - trade 18,408 $ 309 $ 716,657 $ 735,374 $ Refundable deposits 15,000 - - 15,000 TOTAL LIABILITIES 33,408 309 716,657 750,374 FUND BALANCES: Restricted for debt repayment 214,705 - 229,483 444,188 Restricted for infrastructure construction 4,172,755 - 3,495,971 7,668,726 Committed 248,383 132,825 336,996 718,204 TOTAL FUND BALANCES 4,635,843 132,825 4,062,450 8,831,118 TOTAL LIABILITIES AND FUND BALANCES 4,669,251 $ 133,134 $ 4,779,107 $ 9,581,492 $ Reconciliation to the Statement of Net Position: Total fund equity 8,831,118 $ Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds 2,140,308 Payables expected to be paid in the next year but not soon enough use the current period's revenues are not included in the funds (32,839) Long-term liabilities are not due and payable in the current period, and therefore, are not reported in the funds (8,087,711) Deferred premiums and related amortization are recognized in full in the year incurred and are not capitalized and amortized in the funds (212,305) Total Net Position 2,638,571 $ ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2024 The accompanying notes are an integral part of the financial statements 13 Downtown Improvements Project Total Area 3 Area 4 Area 5 Governmental REVENUE: Property Taxes 331,493 $ 33,616 $ 243,784 $ 608,893 $ Interest Earned 246,869 4,859 299,429 551,157 Other - - - - 578,362 38,475 543,213 1,160,050 EXPENDITURES: Current: Office supplies and postage 36 - 36 72 Operating supplies 65 7 14 86 Professional services 26,200 1,834 14,383 42,417 Advertising and publishing 483 36 346 865 Insurance and bonds 2,680 101 960 3,741 Dues and subscriptions 594 63 594 1,251 Administration expense 7,026 586 10,051 17,663 Economic development support 11,875 1,250 11,875 25,000 Other purchased services 221 - - 221 Miscellaneous expense 998 - 1,100 2,098 Capital Outlay: Urban Renewal Projects 12,967 - 1,943,597 1,956,564 Debt service 316,172 - 218,050 534,222 379,317 3,877 2,201,006 2,584,200 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES 199,045 34,598 (1,657,793) (1,424,150) OTHER FINANCING SOURCES (USES) Capital Contributions - - 140,954 140,954 EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 199,045 34,598 (1,516,839) (1,283,196) FUND BALANCE SEPTEMBER 30, 2023 4,436,798 98,227 5,579,289 10,114,314 FUND BALANCE SEPTEMBER 30, 2024 4,635,843 $ 132,825 $ 4,062,450 $ 8,831,118 $ Reconciliation to the Statement of Activities: Total net change in fund balances (1,283,196) $ Repayment of note principal is reported as an expenditure in the governmental funds, but the payment reduces long-term liabilities in the Statement of Net Position 137,972 Governmental funds report the acquistion or construction of capital assets as expenditures, but the payment increases capital assets in the Statement of Net Assets 941,783 Amortization of deferred charges and debt discounts are recognized in the Statement of Activities, but not in the Fund Financial Statements (2,463) Change in Net Position (205,904) $ ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2024 Note 1 - Summary of Significant Accounting Policies A) Basis of Presentation The financial statements of the Jerome Urban Renewal Agency (Agency) are presented in conformity with accounting principles generally accepted in the United States of America for governmental units as prescribed by the Governmental Accounting Standards Board (GASB) and other authoritative sources. GASB is responsible for establishing generally accepted accounting principles (GAAP) for state and local governments through its pronouncements. B) Financial Reporting Entity The Jerome Urban Renewal Agency (Agency) was organized in 1994 under the Idaho Urban Renewal Law of 1965. The Agency is governed by a five-person Board of Commissioners appointed by the Mayor of the City of Jerome with the advice and consent of the City Council. Generally accepted accounting principles require government financial statements to include the primary government and its component units. Component units of a governmental entity are legally separate entities for which the primary government is considered to be financially accountable and for which the nature and significance of their relationship with the primary government are such that exclusion would cause the combined financial statements to be misleading or incomplete. The primary government is considered to be financially accountable if it appoints a majority of an organization’s governing body and imposes its will on that organization. The primary government may also be financially accountable if an organization is fiscally dependent on the primary government, regardless of the authority of the organization’s governing board. Based on the application of the criteria set forth by the Governmental Accounting Standards Board, management has determined that there are no entities which would be component units of the Agency. For financial reporting purposes, in conformity with governmental accounting standards, the Agency is included as a component unit of the City of Jerome, Idaho’s financial statements. The Agency provides urban renewal services to the City and its citizens. These statements present only the funds of the Agency and are not intended to present the financial position and results of operations of the City of Jerome, Idaho in conformity with generally accepted accounting principles. C) Government-Wide and Fund Financial Statements The Agency’s financial statements include the activities of the Agency. The Agency’s government-wide financial statements provide both short-term and long- term information about the Agency’s overall financial status. Fund financial statements focus on the individual activities of the Agency, reporting the Agency’s operations in more detail than the government-wide financial statements. Government-wide financial statements - The government-wide financial statements are designed to provide readers with a broad overview of the Agency’s finances in a manner similar to a private-sector business. The government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of Governmental and Business-Type Activities for the Agency accompanied by a total column. Fiduciary activities of the Agency are not included in these statements. These statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. 14 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2024 The Statement of Net Position presents information on all of the Agency’s assets and liabilities, including capital assets as well as infrastructure assets and long-term liabilities, with the difference between the two presented as net position (deficit). Net position is divided into three components: a. Invested in capital assets, net of related debt - consists of the historical cost of capital assets less accumulated depreciation and less any debt that remains outstanding that was used to finance those assets. b. Restricted net position - consists of balances that are restricted by the Agency’s creditors (for example, through debt covenants), by state enabling legislation (through restrictions on shared revenues), by grantors (both federal and state), and by other contributors (including those who have donated to the Agency). c. Unrestricted - all other balances are reported in this category. The Statement of Activities presents information showing how the net position changed during the most recent year. All changes in net position are reported as soon as the underlying event gives rise to the change that occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods uncollected taxes and earned but unused vacation leave). Amounts reported as program revenues on the government-wide financial statements include charges for services - amounts received from customers or applicants who purchase, use or directly benefit from the goods, services or privileges provided by the Agency, program-specific operating grants and contributions, and program-specific capital grants and contributions. General revenues consist of taxes and all other revenues that do not meet the definition of program revenues. Special items are significant transactions or events within the control of management that are either unusual in nature or infrequent in occurrence. Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. Fund Financial Statements – The Agency, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements use a current financial resources measurement focus and the modified accrual basis of accounting, focusing on the near-term inflows and outflows of spendable resources, and balances of spendable resources available at fiscal year-end. 15 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2024 Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual when they are measurable and available). “Measurable” means the amount of the transaction can be determined and “available” means collected within the current period or expected to be collected soon enough thereafter (usually 60 days) to be used to pay liabilities of the current period. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on general long-term debt, which is recognized when the obligations are expected to be liquidated with expendable available financial resources. Property taxes are susceptible to accrual. Other receipts become measurable and available when the cash is received by the government and are recognized as revenue at that time. Because the focus of governmental funds is narrower than that of the government- wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds. An accompanying schedule is presented to reconcile and explain the differences in fund balances and changes in fund balances as presented in these statements to the net position and changes in net position presented in the Government-Wide financial statements. The Agency has presented all major funds that met those qualifications. In addition, the Agency has presented certain funds as major funds because the Agency believes the financial position and activities of these funds are significant to the Agency as a whole. The Agency reports the following major governmental funds: a. Downtown Improvement Project Area – a special revenue fund used to account for and report property taxes (tax increment revenue) restricted or committed for the operation and maintenance of the Downtown Improvement Project revenue allocation area. b. Area 4 – a special revenue fund used to account for and report property taxes (tax increment revenue) restricted or committed for the operation and maintenance of the Area 4 revenue allocation area. c. Area 5 – a special revenue fund used to account for and report property taxes (tax increment revenue) restricted or committed for the operation and maintenance of the Area 5 revenue allocation area. D) Use of Restricted Funds When both restricted and unrestricted resources are available for use, it is the Agency’s policy to use restricted resources first, then unrestricted resources as they are needed. E) Long-term Debt Obligations In the government-wide financial statements long-term debt and obligations are reported as a liability in the statement of net position. Bond premiums and discounts are deferred and amortized over the term of the bonds using the effective interest rate method. Bond payable are reported net of the applicable bond premium or discount. 16 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2024 In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums on debt issuances are reported as other financing sources while discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures. F) Property Tax Calendar Property taxes for each year are levied in September of that year with the first half of real property taxes and all personal property and mobile home taxes due on December 20th. Taxes not paid on or before December 20th are considered to be delinquent. The second half of the real property taxes is due June 20th of the following year and is considered to be delinquent on June 21st. An initial late penalty of 2% of tax plus 1% per month interest charge is assessed on all delinquent taxes. A tax lien is filed for property whose taxes become three years delinquent. Taxes collected by the County are remitted to the Agency on a basis. Property tax revenue is recognized when it becomes available. Available means when due, or past due and receivable within the current period, or expected to be collected soon enough thereafter to be used to pay liabilities of the current period, which period is not to exceed 60 days. G) Interfund Activity Permanent reallocation of resources between funds of the reporting entity are classified as interfund transfers. For the purpose of the statement of activities, all interfund transfers between individual governmental funds have been eliminated. H) Capital Assets Capital assets, which includes only land, are reported in the government-wide financial statements. Assets are capitalized when they have a useful life in excess of one year and have a cost of $5,000 or more. Purchased or constructed capital assets are valued at cost or estimated historical cost if actual cost is unavailable. Donated assets are reported at fair value at the time received. There is no depreciation recorded for land. I) Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Note 2 - Cash and Investments Cash balances of the Agency’s funds are pooled for investment purposes. The individual funds’ portions of the pool’s cash and investments are reported as “pooled cash and investments.” Investments are stated at fair value (quoted market price or the best available estimate). The Agency does not have a written investment policy. For deposits, custodial credit risk is the risk that, in the event of a bank failure, the government’s deposits may not be returned to it. The Agency does not have a deposit policy for custodial credit risk. At September 30, 2024, the carrying amount of the Agency’s deposits with financial institutions (after considering outstanding and other reconciling items) was $202,249 and the bank balance was $202,249. All funds were insured or collateralized. 17 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2024 For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Agency will not be able to recover the value of its investments that are in the possession of an outside party. The elected State Treasurer, following Idaho Code Section 67-2328, is authorized to sponsor an investment pool in which the Agency voluntarily participates. The Pool is not registered with the Securities and Exchange Commission or any other regulatory body. Oversight is with the State Treasurer and Idaho Code defines allowable investments. All investments are entirely insured or collateralized with securities held by the Pool or by its agent in the Pool’s name and the fair value of the Agency’s position in the external investment pool is the same as the value of the pool shares. The fund was assigned an AAAf fund credit quality rating and S1+ volatility rating by Standard & Poor’s Rating Service in 2009. The Agency’s investment in the State of Idaho Local Government Investment Pool as of September 30, 2024, was $8,935,055. The Agency receives peak net cash inflows during the first quarter of the fiscal year. Cash and investments meeting the criteria as uninsured may, at times during the fiscal year, significantly exceed the uninsured balance at the September 30th fiscal year-end. All of the Agency’s restricted assets are reserved for debt repayment and construction projects. Reconciliation of carrying amount to cash numbers on the financial statements: Sources of cash: Deposits with financial institutions $ 202,249 Local Government Investment Pool, at fair value 8,935,055 US Bank Debt Service Reserve Funds: Cash 22,387 Money Market Funds 421,801 $ 9,581,492 Cash on financial statements: Pooled cash and investments $ 1,468,578 Restricted assets 8,122,914 $ 9,581,492 Note 3 – Capital Assets Capital asset activity for the fiscal year ended September 30, 2024 was as follows: 18 Balance Balance October September Governmental activities: 1, 2023 Increases Decreases 30, 2024 Land 783,097 $ - $ - $ 783,097 $ Construction in progress 415,428 941,783 - 1,357,211 Net capital assets 1,198,525 $ 941,783 $ - $ 2,140,308 $ ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2024 Note 4 – Changes in Long Term Liabilities As of September 30, 2024, the Agency had incurred other obligations which were payable in future fiscal periods. Since payment of these obligations is outside of the Agency's current operating cycle, they did not require current appropriation and expenditure of governmental fund-type resources. These obligations are as follows: Bonds Payable - Series 2022 The Agency issued a note to provide financing to pay the cost of construction of multiple Urban Renewal Projects. The notes consist of both Serial and Term bonds. The interest rate for the Serial bonds is 4% and the Term bonds interest rate is 5% for both Series A and B. The true interest cost rate is 4.5714% for Series A and 4.8291% for Series B with semi-annual interest payments due each March 1st and September 1st. In addition, annual principal payments of varying principal amounts are due each September 1st. Principal payments of $55,000 for Series A was paid on August 14, 2024. No principal payment was made for Series B. The principal balance as of September 30, 2024 is $8,090,000 plus amortized premium of $210,016 for a total of $8,300,016. Miscellaneous Payable – Commercial Creamery Company of Idaho, Inc. The Agency entered into a reimbursement participation agreement with Commercial Creamery on December 18, 2018. The Agency shall disburse a portion of the revenue allocation for actual eligible costs not to exceed $300,000. As the payable carries no interest rate, the unamortized discount was calculated using an effective interest rate of 5.5%. For the year ended September 30, 2024 cash payments of $82,972 less amortized discount of $4,325 for a total of $57,173 were made. Subsequent payments are required on or before March 1 and September 1 of each year through September 1, 2034 or at which time the maximum reimbursement has been distributed. As of September 30, 2024, this obligation is paid in full. Long-term liability activity for the year ended September 30, 2024, was as follows: 19 Balance Balance Amounts October 1, Additional September 30, Due Within 2023 Debt Payments 2024 One Year Bonds payable - Series 2022 (including amortized premium) 8,356,695 - 56,679 8,300,016 87,595 Commerical Creamery (net of amortized discount) 78,647 - 78,647 - - 8,435,342 - 135,326 8,300,016 87,595 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2023 As of September 30, 2024, debt service requirements to maturity for principal and interest, for general long-term debt obligations, are as follows: Note 5 - Risk The Agency is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. Commercial insurance is purchased to cover these risks. Note 6 - Pledge for Payment of the Bonds The Agency pledges the incremental tax revenues and all funds in the debt reserve fund and the debt service reserve fund for the payment of the bonds and the note. Note 7 – Fund Balances In accordance with GASB Statement No. 54, fund balances are classified as follows:  Nonspendable – amounts that cannot be spent because they are in a nonspendable form or because they are legally or contractually required to be maintained intact.  Restricted – amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments.  Committed – amounts that can be used only for specific purposes determined by a formal action of the Board of Commissioners. The Board of Commissioners is the highest level of decision-making authority for the Agency. Commitments may be established, modified, or rescinded only through ordinances or resolutions approved by the Board of Commissioners.  Assigned – amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes. Intent can be expressed by the Agency Commissioners or by an official or body to which the Agency delegates the authority.  Unassigned – all other spendable amounts. 20 Year Ended Principal Interest Total 2025 85,000 $ 394,050 $ 479,050 $ 2026 140,000 390,650 530,650 2027 200,000 385,050 585,050 2028 270,000 377,050 647,050 2029 350,000 1,622,250 1,972,250 2030 - 2034 3,380,000 717,500 4,097,500 2035 - 2039 3,665,000 39,500 3,704,500 2040 - 2039 - - - 8,090,000 3,926,050 $ 12,016,050 $ Premium on bond less accumulated amortization 210,016 8,300,016 $ ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2024 As required by GASB 54, the Agency’s establishment, modification, and rescinding of a committed fund balance is decided upon by passage of an annual appropriations resolution by the Agency Commissioners, acting as the highest level of decision-making authority. When expenditures are incurred for which both restricted and unrestricted fund balance are available, the Agency considers restricted to have been spent first. In the case of an expenditure being incurred for purposes for which amounts in any of the unrestricted fund balances could be used, the Agency does not have a formal policy, but defaults to the order as follows: first against committed, then assigned and finally unassigned fund balances as considered to have been spent. As of September 30, 2024, fund balances are composed of the following: Note 8 – Grant revenue received from the City of Jerome The City of Jerome received funds as a part of the American Rescue Plan Act (ARPA). A committee was formed to determine the best possible use of the funds in relation to the federal rules on how the funds could be spent. The committee recommended the City use some of the funds to support a green space and connectivity project that would serve disadvantaged parts of Jerome. Based on the recommendation of the committee, the City of Jerome council elected to award the Agency, as a subrecipient, all ARPA funds received by the City. In fiscal year 2023 the City awarded the Agency $2,238,908 and in fiscal year 2024 an additional $140,954. These funds are restricted and will be spent on the Southside Park project in Area 5. Note 9 – Contingencies The Agency utilizes reimbursement agreements to promote economic development within the Agency’s defined areas. The Agency enters into these agreements with developers and businesses that have projects within its established Areas that include construction or improvement of public infrastructure or the desired remediation of property. Each agreement establishes a base assessed value of the parcels involved in the project, a maximum amount of eligible costs to be reimbursed, and sets forth the payment terms. The payment amount is 75% of the tax increment generated by the project. The Agency determines the annual payment amount once the developer or business provides the required proof of the new assessed value, property tax notices, and proof of payment of the taxes. Payments will be paid on the 1st of March and September each year until either the established reimbursement is paid in full or the Agency’s project area is closed. These agreements also establish that the reimbursement payments are subordinate to any existing and future Agency obligations including but not limited to tax increment bonds. 21 Downtown Improvement Restricted Fund Blalances: Area 3 Area 4 Area 5 Total Debt payment from bond proceeds 214,705 $ - $ 229,483 $ 444,188 $ Restrict for infrastructure construction 4,172,755 - 3,495,971 7,668,726 Committed Fund Balances: Operations 248,382 132,826 336,996 718,204 Total Fund Balance 4,635,842 $ 132,826 $ 4,062,450 $ 8,831,118 $ ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2024 As of September 30, 2024, the Agency has entered into three of these agreements. All related projects were completed prior to fiscal year end. However, none of the required documents to determine payment amount has been provided for the Agency to determine payment amounts or estimated life of the liabilities. The details of the agreements are as follows: Jerome Pacific Associates: The Agency and developer entered into the original capital reimbursement agreement on July 7, 2022. The project was the construction of affordable housing in Area 3 which also included certain public infrastructures adjacent to the project. The Agency agreed to reimbursement eligible costs up to $778,329. Completion of the project was in June of 2024. The developer demonstrated eligible costs incurred totaling $890,163. On July 31, 2024 the Agency and developer signed an amended agreement to increase the maximum reimbursement to the actual costs. The Agency expects to receive the required documentation to calculate the payment amount owed and issue the first payment no later than September 1, 2025. Payments continue until the eligible costs are paid in full or September 1, 2034, whichever comes first. Nelson-Jameson, Inc.: On November 3, 2022, the Agency passed Resolution 11-22 authorizing the reimbursement agreement between the Agency and the business Nelson- Jameson for site remediation costs in Area 4. The business completed the project in May of 2024. The Agency and business entered into the agreement on September 11, 2024. The Agency has agreed to reimburse Nelson-Jameson a maximum amount of $391,000. The Agency expects to receive the required documentation to calculate the payment amount owed and issue the first payment no later than September 1, 2025. The payments continue until the eligible costs are paid in full or September 1, 2034, whichever comes first. Milk Specialties Company: The Agency entered into a capital reimbursement agreement with the business Milk Specialties Company on May 23, 2023. The business redeveloped property and constructed a manufacturing facility in Area 5 and included site remediation costs the Agency believed benefited Area 5. Once all required documentation is provided to the Agency, a portion of the eligible costs not to exceed $606,712 with be reimbursed. The Agency expects to receive the required documentation to calculate the payment amount owed and issue the first payment no later than September 1, 2025. The payments continue until the eligible costs are paid in full or September 1, 2038, whichever comes first. Note 10 – Subsequent Event On December 5, 2024, the Agency passed Resolution 6-24 approving the real property exchange agreement between the Agency and the College of Southern Idaho (CSI) that was initially agreed upon in the Memorandum of Understanding (MOU) dated September 2, 2022 between the City, the Agency, and CSI. The MOU formalized the understanding that the City would relinquish ownership of approximately 4 acres of bare ground, referred to as Block 55, located on North Lincoln between 2nd Avenue West and 3rd Avenue West to the Agency. The Agency would then exchange this property for the CSI owned parcels located on the northwest corner of Main and Lincoln, referred to as 104 West Main Street. This property is located adjacent to two parcels already owned by the Agency. The Agency intends to market all three parcels for development while CSI is building a new facility on Block 55. The actual exchange occurred on January 27, 2025. 22 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY BUDGETARY COMPARISON SCHEDULE DOWNTOWN IMPROVEMENT AREA FUND YEAR ENDED SEPTEMBER 30, 2024 23 Over REVENUE: Original Final Actual (Under) Property Taxes 327,115 $ 327,115 $ 331,493 $ 4,378 $ Interest Earned 32,562 32,562 246,869 214,307 Total Revenue 359,677 359,677 578,362 218,685 EXPENDITURES: Current: Office supplies and postage 24 24 36 12 Operating supplies 48 48 65 17 Professional services 24,393 24,393 26,200 1,807 Advertising and publishing 356 356 483 127 Insurance and bonds 974 974 2,680 1,706 Dues and subscriptions 2,185 2,185 594 (1,591) Administration expense 9,020 9,020 7,026 (1,994) Economic Development support 11,875 11,875 11,875 - Other purchased services 595 595 221 (374) Miscellaneous 25 25 998 973 Capital Outlay - Construction 4,187,809 4,187,809 12,967 (4,174,842) Debt Service 293,200 293,200 316,172 22,972 Total expenditures 4,530,504 4,530,504 379,317 (4,151,187) EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (4,170,827) (4,170,827) 199,045 4,369,872 OTHER FINANCING SOURCES (USES) Capital Contributions - - - - EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (4,170,827) $ (4,170,827) $ 199,045 $ 4,369,872 $ Budgeted Amounts ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY BUDGETARY COMPARISON SCHEDULE AREA 4 FUND YEAR ENDED SEPTEMBER 30, 2024 24 Over REVENUE: Original Final Actual (Under) Property Taxes 33,113 $ 33,113 $ 33,616 $ 503 $ Interest Earned 375 375 4,859 4,484 Total Revenue 33,488 33,488 38,475 4,987 EXPENDITURES: Current: Office supplies and postage 3 3 - Operating supplies 5 5 7 2 Professional services 1,115 1,115 1,834 719 Advertising and publishing 38 38 36 Insurance and bonds 103 103 101 Dues and subscriptions 230 230 63 (167) Administration expense 949 949 586 (363) Economic Development support 1,250 1,250 1,250 - Miscellaneous 25 25 - (25) Capital Outlay - Construction 140,592 140,592 - (140,592) Total expenditures 144,310 144,310 3,877 (140,433) EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (110,822) (110,822) 34,598 145,420 OTHER FINANCING SOURCES (USES) Capital Contributions - - - - Total other financing sources(uses) - - - - EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (110,822) $ (110,822) $ 34,598 $ 145,420 $ Budgeted Amounts ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY BUDGETARY COMPARISON SCHEDULE AREA 5 FUND YEAR ENDED SEPTEMBER 30, 2024 25 Over REVENUE: Original Final Actual (Under) Property Taxes 247,173 $ 247,173 $ 243,784 $ (3,389) $ Interest Earned 37,812 37,812 299,429 261,617 Total Revenue 284,985 284,985 543,213 258,228 EXPENDITURES: Current: Office supplies and postage 24 24 36 12 Operating supplies 48 48 14 (34) Professional services 10,593 10,593 14,383 3,790 Advertising and publishing 356 356 346 (10) Insurance and bonds 974 974 960 (14) Dues and subscriptions 2,185 2,185 594 (1,591) Administration expense 9,020 9,020 10,051 1,031 Economic Development support 11,875 11,875 11,875 - Miscellaneous 1,042 1,042 1,100 58 Bond issuance costs - - - - Capital Outlay - Construction 4,194,205 4,194,205 1,943,597 (2,250,608) Debt Service 218,050 218,050 218,050 - Total expenditures 4,448,372 4,448,372 2,201,006 (2,247,366) EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (4,163,387) (4,163,387) (1,657,793) 2,505,594 OTHER FINANCING SOURCES (USES) Grant Income/Capital Contributions - - 140,954 140,954 Total other financing sources(uses) - - 140,954 140,954 EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (4,163,387) $ (4,163,387) $ (1,516,839) $ 2,646,548 $ Budgeted Amounts ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY NOTES TO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED SEPTEMBER 30, 2024 NOTE 1 - BUDGETARY INFORMATION A) Budgetary-GAAP Reporting Reconciliation The accompanying Budgetary Comparison Schedule for all Areas compares the legally adopted budget with actual data on a budgetary basis. Accounting principles applied for purposes of developing data on the budgetary basis do not differ significantly from those used to present financial statements in conformity with generally accepted accounting principles (GAAP). B) Budgetary Policies Jerome Urban Renewal Agency prepares an annual budget of revenue and expenditures prior to the beginning of the fiscal year. The budget is prepared on the modified accrual basis of accounting. Budget figures are based on prior levels of revenue and expenditures taking into account specific items which may be planned in advance by the District such as capital outlay expenditures. Any excess of budgeted expenditures over budgeted revenue are temporary situations and are budgeted so as to utilize cash balances in the individual fund. C) Excess of Expenditures Over Appropriations The Budgetary Comparison Schedules show all less expenditures than appropriated in all three Areas. 26 ---PAGE BREAK--- 2190 Village Park Avenue, Suite 300 • Twin Falls, ID 83301 • [PHONE REDACTED] • Fax: [PHONE REDACTED] 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 April 15, 2025 To the Board of Commissioners Jerome Urban Renewal Agency Jerome, 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 Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities of the Jerome Urban Renewal Agency, as of and for the year ended September 30, 2024, and the related notes to the financial statements, which collectively comprise the Jerome Urban Renewal Agency’s basic financial statements, and have issued our report thereon dated April 15, 2025. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Jerome Urban Renewal Agency’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 Jerome Urban Renewal Agency’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Jerome Urban Renewal Agency’s internal control. 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. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Jerome Urban Renewal Agency’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. -27- ---PAGE BREAK--- Report Continued— 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. Workman & Company WORKMAN AND COMPANY Certified Public Accountants Twin Falls, Idaho -28- ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL BALANCE SHEET SEPTEMBER 30, 2025 URBAN RENEWAL - AREA 3 FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 03/04/2026 04:39PM PAGE: 2 ASSETS 10-00-00-1000 CASH IN POOLED CASH FUND 281,150.56 10-00-00-1003 AREA 3 CONSTRUCTION LGIP 3039 4,061,106.35 10-00-00-1004 DEBT SERVICE RESERVE '22A BOND 234,549.23 TOTAL ASSETS 4,576,806.14 LIABILITIES AND EQUITY LIABILITIES 10-00-00-2001 ACCOUNTS PAYABLE 767,991.02 TOTAL LIABILITIES 767,991.02 FUND EQUITY 10-00-00-2500 FUND BALANCE 4,635,843.06 UNAPPROPRIATED FUND BALANCE: REVENUE OVER EXPENDITURES - YTD ( 827,027.94) BALANCE - CURRENT DATE ( 827,027.94) TOTAL FUND EQUITY 3,808,815.12 TOTAL LIABILITIES AND EQUITY 4,576,806.14 ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL REVENUES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING SEPTEMBER 30, 2025 URBAN RENEWAL - AREA 3 PERIOD ACTUAL YTD ACTUAL BUDGET UNEARNED PCNT FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 03/04/2026 04:39PM PAGE: 3 SOURCE 00 10-00-00-3001 TAX INCREMENT REVENUE - DOWNTO .00 445,463.35 414,924.00 ( 30,539.35) 107.4 10-00-00-3249 PERSONAL PROPERTY REPLACEMENT .00 6,389.48 6,390.00 .52 100.0 10-00-00-3373 INTEREST EARNED .00 208,510.01 106,590.00 ( 101,920.01) 195.6 10-00-00-3375 MISCELLANEOUS INCOME 15,000.00 15,000.00 .00 ( 15,000.00) .0 TOTAL SOURCE 00 15,000.00 675,362.84 527,904.00 ( 147,458.84) 127.9 TOTAL FUND REVENUE 15,000.00 675,362.84 527,904.00 ( 147,458.84) 127.9 ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING SEPTEMBER 30, 2025 URBAN RENEWAL - AREA 3 PERIOD ACTUAL YTD ACTUAL BUDGET UNEXPENDED PCNT FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 03/04/2026 04:39PM PAGE: 4 DEPARTMENT 00 10-00-00-4131 OFFICE SUPPLIES & POSTAGE .00 .00 24.00 24.00 .0 10-00-00-4132 OPERATING SUPPLIES .00 .00 48.00 48.00 .0 10-00-00-4142 PROFESSIONAL SERVICES .00 39,004.90 40,353.00 1,348.10 96.7 10-00-00-4144 ADVERTISING & PUBLISHING .00 356.71 359.00 2.29 99.4 10-00-00-4146 INSURANCE & BONDS .00 1,151.88 1,152.00 .12 100.0 10-00-00-4148 DUES & SUBSCRIPTIONS .00 593.75 641.00 47.25 92.6 10-00-00-4157 INTEREST EXPENSE/DEBT SERVICE .00 261,000.00 261,000.00 .00 100.0 10-00-00-4163 OTHER PURCHASED SERVICES .00 5,425.04 500.00 ( 4,925.04) 1085.0 10-00-00-4169 MISCELLANEOUS EXPENSE .00 681.10 25.00 ( 656.10) 2724.4 10-00-00-4179 ECON. DEV. REIMBURSE PAYMENTS .00 1,172,006.43 4,026,624.00 2,854,617.57 29.1 10-00-00-4186 ADMINISTRATION EXPENSE .00 10,295.97 9,186.00 ( 1,109.97) 112.1 10-00-00-4187 ECONOMIC DEVELOPMENT SUPPORT .00 11,875.00 11,875.00 .00 100.0 10-00-00-4279 CAPITAL OUTLAY - CONSTRUCTION .00 .00 135,701.00 135,701.00 .0 TOTAL DEPARTMENT 00 .00 1,502,390.78 4,487,488.00 2,985,097.22 33.5 TOTAL FUND EXPENDITURES .00 1,502,390.78 4,487,488.00 2,985,097.22 33.5 NET REVENUE OVER EXPENDITURES 15,000.00 ( 827,027.94) ( 3,959,584.00) ( 3,132,556.06) ( 20.9) ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL BALANCE SHEET SEPTEMBER 30, 2025 URBAN RENEWAL - AREA 4 FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 03/04/2026 04:39PM PAGE: 5 ASSETS 11-00-00-1000 CASH IN POOLED CASH FUND 193,314.97 11-00-00-1001 UMPQUA PROJECT FUNDS 4,400,926.15 11-00-00-1002 UMPQUA BOND FUND ACCOUNT 607,010.75 TOTAL ASSETS 5,201,251.87 LIABILITIES AND EQUITY LIABILITIES 11-00-00-2001 ACCOUNTS PAYABLE 1,174.30 TOTAL LIABILITIES 1,174.30 FUND EQUITY 11-00-00-2500 FUND BALANCE 132,825.67 UNAPPROPRIATED FUND BALANCE: REVENUE OVER EXPENDITURES - YTD 5,067,251.90 BALANCE - CURRENT DATE 5,067,251.90 TOTAL FUND EQUITY 5,200,077.57 TOTAL LIABILITIES AND EQUITY 5,201,251.87 ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL REVENUES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING SEPTEMBER 30, 2025 URBAN RENEWAL - AREA 4 PERIOD ACTUAL YTD ACTUAL BUDGET UNEARNED PCNT FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 03/04/2026 04:39PM PAGE: 6 SOURCE 00 11-00-00-3001 TAX INCREMENT REV-AREA 4 .00 67,668.50 37,250.00 ( 30,418.50) 181.7 11-00-00-3244 BOND PROCEEDS 97,750.00 5,012,250.00 .00 ( 5,012,250.00) .0 11-00-00-3249 PERSONAL PROP REPLACEMENT .00 672.58 673.00 .42 99.9 11-00-00-3373 INTEREST EARNED .00 30,582.61 2,620.00 ( 27,962.61) 1167.3 TOTAL SOURCE 00 97,750.00 5,111,173.69 40,543.00 ( 5,070,630.69) 12606. TOTAL FUND REVENUE 97,750.00 5,111,173.69 40,543.00 ( 5,070,630.69) 12606. ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING SEPTEMBER 30, 2025 URBAN RENEWAL - AREA 4 PERIOD ACTUAL YTD ACTUAL BUDGET UNEXPENDED PCNT FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 03/04/2026 04:39PM PAGE: 7 DEPARTMENT 00 11-00-00-4131 OFFICE SUPPLIES & POSTAGE .00 .00 3.00 3.00 .0 11-00-00-4132 OPERATING SUPPLIES .00 .00 5.00 5.00 .0 11-00-00-4142 PROFESSIONAL SERVICES 85,250.00 14,924.38 2,795.00 ( 12,129.38) 534.0 11-00-00-4144 ADVERTISING & PUBLISHING .00 576.78 38.00 ( 538.78) 1517.8 11-00-00-4146 INSURANCE & BONDS .00 121.24 121.00 ( .24) 100.2 11-00-00-4148 DUES & SUBSCRIPTIONS .00 62.50 68.00 5.50 91.9 11-00-00-4157 INTEREST EXPENSE/DEBT SERVICE .00 25,630.91 .00 ( 25,630.91) .0 11-00-00-4169 MISCELLANEOUS EXPENSE 12,500.00 32.36 25.00 ( 7.36) 129.4 11-00-00-4186 ADMINISTRATION EXPENSE .00 1,323.62 967.00 ( 356.62) 136.9 11-00-00-4187 ECONOMIC DEVELOPMENT SUPPORT .00 1,250.00 1,250.00 .00 100.0 11-00-00-4279 CAPITAL OUTLAY - CONSTRUCTION .00 .00 145,727.00 145,727.00 .0 TOTAL DEPARTMENT 00 97,750.00 43,921.79 150,999.00 107,077.21 29.1 TOTAL FUND EXPENDITURES 97,750.00 43,921.79 150,999.00 107,077.21 29.1 NET REVENUE OVER EXPENDITURES .00 5,067,251.90 ( 110,456.00) ( 5,177,707.90) 4587.6 ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL BALANCE SHEET SEPTEMBER 30, 2025 URBAN RENEWAL - AREA 5 FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 03/04/2026 04:39PM PAGE: 8 ASSETS 12-00-00-1000 CASH IN POOLED CASH FUND 675,223.38 12-00-00-1003 AREA 5 CONSTRUCTION LGIP 3040 2,760,726.69 12-00-00-1004 DEBT SERVICE RESERVE '22B BOND 228,486.67 TOTAL ASSETS 3,664,436.74 LIABILITIES AND EQUITY LIABILITIES 12-00-00-2001 ACCOUNTS PAYABLE 796,356.38 TOTAL LIABILITIES 796,356.38 FUND EQUITY 12-00-00-2500 FUND BALANCE 4,062,449.39 UNAPPROPRIATED FUND BALANCE: REVENUE OVER EXPENDITURES - YTD ( 1,194,369.03) BALANCE - CURRENT DATE ( 1,194,369.03) TOTAL FUND EQUITY 2,868,080.36 TOTAL LIABILITIES AND EQUITY 3,664,436.74 ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL REVENUES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING SEPTEMBER 30, 2025 URBAN RENEWAL - AREA 5 PERIOD ACTUAL YTD ACTUAL BUDGET UNEARNED PCNT FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 03/04/2026 04:39PM PAGE: 9 SOURCE 00 12-00-00-3001 TAX INCREMENT AREA 5 .00 774,515.39 212,457.00 ( 562,058.39) 364.6 12-00-00-3249 PERSONAL PROP REPLACEMENT .00 6,389.48 6,390.00 .52 100.0 12-00-00-3373 INTEREST EARNED .00 145,203.25 135,885.00 ( 9,318.25) 106.9 TOTAL SOURCE 00 .00 926,108.12 354,732.00 ( 571,376.12) 261.1 TOTAL FUND REVENUE .00 926,108.12 354,732.00 ( 571,376.12) 261.1 ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING SEPTEMBER 30, 2025 URBAN RENEWAL - AREA 5 PERIOD ACTUAL YTD ACTUAL BUDGET UNEXPENDED PCNT FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 03/04/2026 04:39PM PAGE: 10 DEPARTMENT 00 12-00-00-4131 OFFICE SUPPLIES & POSTAGE .00 .00 24.00 24.00 .0 12-00-00-4132 OPERATING SUPPLIES .00 .00 48.00 48.00 .0 12-00-00-4142 PROFESSIONAL SERVICES .00 17,267.46 16,203.00 ( 1,064.46) 106.6 12-00-00-4144 ADVERTISING & PUBLISHING .00 122.93 359.00 236.07 34.2 12-00-00-4146 INSURANCE & BONDS .00 1,151.88 1,152.00 .12 100.0 12-00-00-4148 DUES & SUBSCRIPTIONS .00 593.75 641.00 47.25 92.6 12-00-00-4157 INTEREST EXPENSE/DEBT SERVICE .00 218,050.00 218,050.00 .00 100.0 12-00-00-4163 OTHER PURCHASED SERVICES .00 1,252.50 .00 ( 1,252.50) .0 12-00-00-4169 MISCELLANEOUS EXPENSE .00 317.09 500.00 182.91 63.4 12-00-00-4179 ECON. DEV. REIMBURSE PAYMENTS 205,832.96 787,829.34 2,667,000.00 1,879,170.66 29.5 12-00-00-4186 ADMINISTRATION EXPENSE .00 16,209.57 9,186.00 ( 7,023.57) 176.5 12-00-00-4187 ECONOMIC DEVELOPMENT SUPPORT .00 11,875.00 11,875.00 .00 100.0 12-00-00-4275 CAP OUTLAY - SOUTH SIDE PARK .00 1,065,807.63 1,025,963.00 ( 39,844.63) 103.9 12-00-00-4276 CAP OUTLAY - INFRASTRUCTURE ( 205,832.96) .00 .00 .00 .0 TOTAL DEPARTMENT 00 .00 2,120,477.15 3,951,001.00 1,830,523.85 53.7 TOTAL FUND EXPENDITURES .00 2,120,477.15 3,951,001.00 1,830,523.85 53.7 NET REVENUE OVER EXPENDITURES .00 ( 1,194,369.03) ( 3,596,269.00) ( 2,401,899.97) ( 33.2) ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL BALANCE SHEET SEPTEMBER 30, 2025 POOLED CASH FUND FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 03/04/2026 04:39PM PAGE: 11 ASSETS 75-00-00-1000 CASH ALLOCATED TO OTHER FUNDS ( 1,149,688.91) 75-00-00-1001 POOLED CHECKING 17,600.02 75-00-00-1003 INVESTMENTS - STATE TREAS LGIP 1,132,088.89 TOTAL ASSETS .00 ---PAGE BREAK--- Creditor Name Maturity Date Effective Interest Rate Original Debt Amount Debt Amount Fiscal Year End Bonds Payable: Series 2022A US Bank 9/1/2029 4.57% 3,755,000.00 $ 3,595,000.00 $ Series 2022B US Bank 9/1/2035 4.83% 4,410,000.00 $ 4,410,000.00 $ Series 2025 Umqua/Columbia Bank 9/1/2025 4.63% 5,110,000.00 $ 5,110,000.00 $ Total Oustanding Debt 13,115,000.00 $ Jerome Urban Renewal Agency Bond & Debt Schedule For Fiscal Year Ending September 30, 2025