Document Jerome_doc_d55c05f7ba

Jerome urban renewal agency R:\URA\Annual Activity Reports\2023 Annual Report\2023 Urban Renewal Agency Annual Report.docx 1/8 2023 Annual Report Jerome Urban Renewal Agency To create opportunities for economic growth through public improvements and neighborhood redevelopment. ---PAGE BREAK--- Jerome urban renewal agency R:\URA\Annual Activity Reports\2023 Annual Report\2023 Urban Renewal Agency Annual Report.docx I. EXECUTIVE SUMMARY The following summaries identify the major activity that was undertaken in the 2023 calendar year by the Jerome Urban Renewal Agency (“JURA” or “Agency”). Area 2  On June 2, 2022, the Agency’s Board of Commissioners voted to terminate this area by September 30, 2022. During 2023 the only activity was paying outstanding liabilities from 2022’s activity. All excess funds were forwarded to Jerome County to be allocated to the affected taxing districts in the project area. In total, the area had excess funds of $3,464,010. Area 3  The JURA terminated its agreement with Summit Creek Development as part of the Block 55, 56, and 66 project. A new RFP soliciting a multi‐family development project was published in December of 2023.  In 2023 the JURA and City of Jerome entered into a memorandum of understanding with the College of Southern Idaho (CSI) for a new educational facility to be located on City owned property within area 3. In 2023, LKV Architects began the design of the building and site and construction is expected to begin in 2024.  The JURA obtained financing in the amount of $3,770,044 in 2022 to support the redevelopment of streetscapes and other critical infrastructure throughout downtown Jerome. In 2023, JUB was hired to begin the design and prepare construction documents for these improvements. We expect construction to start in 2024. Area 4  Occupancy was given to the new 20,000 square foot Western Dairy Transportation building. Western Dairy Transportation’s new 20,000 square foot facility is under construction. No JURA funds were expended on this project.  Nelson Jameson began construction of a new 45,000 square foot facility. The agency agreed in principle to reimburse Nelson Jameson for significant rock removal which is a detriment to developing the ground. It’s estimated that the cost of removal will be $250,0000. Area 5  A contract with Burke’s Excavation was approved to begin the development of the ‘southside’ park facility. It’s expected that the park will be ready for use in the fall of 2024. During 2023 JURA contributed $1,029,327 to this project.  Formal amendment to the Area 5 plan to annex in approximately 7 acres in the area was approved in 2023.  An engineering agreement with Keller Associates was approved in 2023 to design the gravity sewer line project from H‐Street to Jerome Cheese. This will eliminate the need for the JCC and 100 South lift stations. In 2023 the total JURA expenditures for this project was $6,312. ---PAGE BREAK--- Jerome urban renewal agency R:\URA\Annual Activity Reports\2023 Annual Report\2023 Urban Renewal Agency Annual Report.docx 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 R:\URA\Annual Activity Reports\2023 Annual Report\2023 Urban Renewal Agency Annual Report.docx 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. Kushland 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 Ryan Armbruster and 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 R:\URA\Annual Activity Reports\2023 Annual Report\2023 Urban Renewal Agency Annual Report.docx IV. STRATEGIC PRIORITIES On August 25, 2011, the Agency held a Strategic Planning meeting where the board members, staff, and public discussed the strategic focus areas for the next 12 months and five years. As a result, the Agency established its first mission statement, vision statement, and a strategic plan for the five years. The Agency had last officially updated the strategic priorities in January 2013. As part of its budgeting process in 2023, the Agency began identifying major areas of importance and outlined basic objectives for the agencies focus. Priority Objectives:  12 Month Plan o Continue marketing downtown area for revitalization projects o Develop Block 55, 56, and 66 o Explore options for opportunities to drive traffic downtown  CSI Center, Streetscape improvements o Continue marketing Area 4 and 5 as the prime location in the Magic Valley for industrial expansion. o Complete construction of new park facility.  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: 2023 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 2023, the total Tax Increment Revenue received by the Agency was $557,560. $279,878 for the Downtown Improvement Project Area, $24,016 for Area 4, and $253,666 for Area 5. The following chart shows a summary of revenue received for the 2023 calendar year: Urban Renewal Area Revenue Received in 2023 Downtown Improvements Project (Area 3) Area 4 Area 5 $ 279,878 $ 24,016 $ 253,666 TOTAL $ 557,560 ---PAGE BREAK--- Jerome urban renewal agency R:\URA\Annual Activity Reports\2023 Annual Report\2023 Urban Renewal Agency Annual Report.docx 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 ---PAGE BREAK--- Jerome urban renewal agency R:\URA\Annual Activity Reports\2023 Annual Report\2023 Urban Renewal Agency Annual Report.docx VII. SUMMARY OF INCREMENT VALUE OF JURA DISTRICTS District Adjusted Base Value (2019) Increment Value (2023) Area 3 $ 38,093,940 $ 29,707,934 Area 4 $ 316,935 $ 1,724,139 Area 5 $ 5,253,824 $ 21,244,642 In 2023 the total increment value of the Agency increased by $11,119,815. This is a 26.76% overall increase. The majority of the increase was in Area 3. Its increment value increased by $8,598,704 or 40.73%. Several businesses in the area had made property improvements. Area 4 increased $4,629, an .27% increase. Area 5 increment value increased by $2,516,482 which is a 13.44% increase from 2022. VIII. PROJECT PRIORITIES AND ALLOCATIONS FOR FY 2024 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 $ 4,187,809 Downtown streetscape improvements Infrastructure Area 4 $ 140,592 Projects to be determined Infrastructure Area 5 $ 4,194,205 South Side Park Project & misc. projects to be determined TOTAL PROJECT COSTS $ 8,522,606 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 2023 and last audit was completed in March of 2023 for the fiscal year ending September 30, 2022. ---PAGE BREAK--- Jerome urban renewal agency R:\URA\Annual Activity Reports\2023 Annual Report\2023 Urban Renewal Agency Annual Report.docx 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, 20223 as well as the audit report for fiscal year ending September 30, 2022 prior to the statutory deadline of December 1, 2023. Public Involvement and Outreach On March 21, 2024 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) 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 2023, the Agency received a report from Rexroat, Harberd, and Associates expressing an opinion on the audit of the agency’s financial statements for Fiscal Year 2022. 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, 2022. A copy of the Agency’s 2022 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 2022‐2023 Budget on August 25, 2022. 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 2022 (Audit)  Unaudited Balance Sheet (FY 2022‐2023, Period Ended 9/30/2023)  Unaudited Revenue/Expense Final Budget vs Actual Report (FY 2022‐2023, Period Ended 9/30/2023)  Unaudited Bonds and Long‐Term Debt Schedule (FY 2022‐2023, Period Ended 9/30/2023) ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY A COMPONENT UNIT OF THE CITY OF JEROME, IDAHO FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2022 ---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 14-21 Required Supplementary Information: Budgetary Comparison Schedules 22-25 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--- Certified Public Accountants March 29, 2023 Independent Auditor’s Report Board of Commissioners Jerome Urban Renewal Agency Jerome, Idaho 83338 Report on the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities and each major fund of the Jerome Urban Renewal Agency (Agency), a component unit of the City of Jerome, Idaho, as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the 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 and the major fund of the Agency as of September 30, 2022, and the respective changes in financial position 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 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 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 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--- 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 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 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 planned 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; the budgetary comparison information; and the Notes to Required Supplementary Information as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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. 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. 2 ---PAGE BREAK--- Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 29, 2023, on our consideration of the 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 solely 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 the effectiveness of the 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 Agency's internal control over financial reporting and compliance. 3 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY MANAGEMENT’S DISCUSSION AND ANALYSIS For Year Ended September 30, 2022 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, 2021 and ended on September 30, 2022. 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, 2022 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 four 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 4 fund areas are found on Pages 22 to 25. Expenditures exceeded revenues by $1,563,383 for Area 2. The spending in excess of revenues was intentional as Area 2 was in the final phase of being closed out. Revenues exceeded expenditures by $3,919,338 for Area 3; revenues exceeded expenditures by $22,701 for Area 4. Area 5 had revenues exceeding expenditures by $4,111,758. 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, 2022 For the City of Jerome Urban Renewal Agency for the Fiscal Year 2022, changes in governmental assets and liabilities were as follows: As indicated in Table 3.1, for the year ended September 30, 2022, cash and investments made up 14% of the Agency assets. During this year the Agency acquired land in Area 5. Typically when the Agency purchases capital assets, they are donated to the City of Jerome. In this instance the Agency plans to develop the property into a sports and recreational park that will be donated to the Jerome Recreational District once completed. At the end of the fiscal year, the Agency is able to report a positive net position of $1,147,184. When looking at the Agency’s net position, the other area to look at is the restricted and unrestricted totals. The $8,350,537 designated as committed 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 and the bond proceeds restrict for infrastructure construction projects in Area 3 and Area 5. 6 Table 3.1 Net Position Governmental Governmental Total Total Activities Activities FY 2021 FY 2022 FY 2021 FY 2022 Current Assets Cash and Investments $2,836,053 $1,473,207 $2,836,053 $1,473,207 Restricted Assets $458,416 $8,350,537 $458,416 $8,350,537 Deferred Charges $165 $0 $165 $0 Non Current Assets $102,851 $821,699 $102,851 $821,699 Total Assets $3,397,485 $10,645,443 $3,397,485 $10,645,443 Current Liabilities Payables and Deposits $21,899 $987,134 $21,899 $987,134 Current Portion LTD $174,552 $84,711 $174,552 $84,711 Non‐Current Liabilities $126,881 $8,426,414 $126,881 $8,426,414 Total Liabilities $323,332 $9,498,259 $323,332 $9,498,259 Net Position: Invested in Capital Assets $102,851 $821,699 $102,851 $821,699 Committed $458,416 $8,350,537 $458,416 $8,350,537 Unrestricted $2,512,886 ‐$8,025,052 $2,512,886 ‐$8,025,052 Total Net Position: $3,074,153 $1,147,184 $3,074,153 $1,147,184 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY MANAGEMENT’S DISCUSSION AND ANALYSIS For Year Ended September 30, 2022 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 2022, the Agency’s total revenues were $2,800,086 while total expenses were $4,727,055. The Agency reports a decrease in net position of $1,926,969. 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 this last fiscal year, the Agency reported a positive fund equity balance of $9,762,984 of which $1,412,447 is committed for spending by the Agency. The remainder of the fund balance of $8,350,537 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 $9,762,984 in restricted and committed assets. 7 Table 3.2 Change in Net Position Governmental Governmental Total Total Activities Activities FY 2021 FY 2022 FY 2021 FY 2022 Revenues Program Revenues: Charges for Service $0 $0 $0 $0 Operating grants and contributions $268,965 $0 $268,965 $0 Capital grants and contributions $0 $200,000 $0 $200,000 General Revenues: Property Taxes $2,544,521 $2,591,920 $2,544,521 $2,591,920 Investment Earnings $10,606 $7,962 $10,606 $7,962 Refunds and reimbrsements $10,606 $204 $10,606 $204 Total Revenues $2,824,092 $2,800,086 $2,834,698 $2,800,086 Expenses Urban Renew al Projects: Southeast Industrial Area 2 $37,413 $863,319 $37,413 $863,319 Dow ntow n Area 3 $0 $0 $0 $0 Cash to County for Area 2 closure $0 $3,421,917 $0 $3,421,917 Support Services $345,567 $155,434 $345,567 $155,434 Bond issuance costs $0 $216,689 $0 $216,689 Interest on long-term liabilities $0 $69,696 $0 $69,696 Total Expenses $382,980 $4,727,055 $382,980 $4,727,055 Change in Net Position $2,441,112 ($1,926,969) $2,441,112 ($1,926,969) Net Position - beginning as reported $633,041 $3,074,153 $633,041 $3,074,153 Net Position - ending $3,074,153 $1,147,184 $3,074,153 $1,147,184 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY MANAGEMENT’S DISCUSSION AND ANALYSIS For Year Ended September 30, 2022 IV. Capital Assets and Debt Management Administration a. Capital Assets. 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. Previous years purchased land will be held for resale at a later date while the land purchase in fiscal year 2022 will be developed and 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 in fiscal year 2022. b. Debt Management and Administration. As of September 30, 2022, the Agency had total debt of $8,511,125. 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. 8 Table 4.2 Long-Term Debt Balance Additions Payment Balance 1-Oct-21 Adjustments 30-Sep-22 Governmental Activities: Bonds Payable $110,451 $8,377,305 ($110,451) $8,377,305 Commercial Creamery $190,982 $0 ($57,162) $133,820 Total $301,433 $8,377,305 ($167,613) $8,511,125 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY MANAGEMENT’S DISCUSSION AND ANALYSIS For Year Ended September 30, 2022 V. Fiscal Year 2023 Fiscal Priorities In August of 2022, the City of Jerome Urban Renewal Agency Commissioners and City Staff developed the Fiscal Year 2022 spending priorities to help focus the efforts of the Agency’s resources in the current fiscal year that began on October 1, 2022 and ends on September 30, 2023. Those priorities and their associated dollar amounts are as follows: 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. On September 27, 2022 the Agency filed the termination ordinance with the Office of the Jerome County Recorder, County Assessor and Idaho State Tax Commission to dissolve the Southeast Industrial Project Area, commonly known as Area 2. Prior to September 30, 2022 all existing surplus, except $882,718 that was held for expenses payable in 2023, was remitted to the County Treasurer for distribution to the taxing entities within the revenue allocation area. Previously the Agency had a fifth revenue allocation area known as the “South Lincoln Project Area”. This area was terminated September 30, 2014. 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 Table 5.1 2023 Fiscal Priorities Item Area Projected Cost Explanation Infrastructure Area 3 $473,349 Projects to be determined Infrastructure Area 4 $99,813 Projects to be determined Infrastructure Area 5 $2,415,845 South Side Park project & miscellaneous projects to be determined Total Projects $2,989,007 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY STATEMENT OF NET POSITION SEPTEMBER 30, 2022 The accompanying notes are an integral part of the financial statements 10 Governmental ASSETS: Activities Cash and Investments 1,473,207 $ Restricted assets: Cash and investments 8,350,537 Capital assets: Land and construction in progress 821,699 Total Assets 10,645,443 LIABILITIES: Accounts payable - trade and other accrued liabilities 909,079 Refundable Deposits 15,000 Interest payable 63,055 Long-term liabilities: Current portion 84,711 Noncurrent portion 8,426,414 Total Liabilities 9,498,259 NET POSITION Net investment in capital assets 821,699 Restricted for debt repayment and construction projects 8,350,537 Unrestricted (8,025,052) Total Net Position 1,147,184 $ ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2022 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 4,285,236 $ - $ - $ 200,000 $ (4,085,236) $ Support services 155,434 - - - (155,434) Bond issuance costs 216,689 - - - (216,689) Interest on long-term liabilities & obligations 69,696 - - - (69,696) Total governmental activities 4,727,055 $ - $ - $ 200,000 $ (4,527,055) General Revenues: Property taxes 2,591,920 Unrestricted investment earnings 7,962 Refunds and reimbursements 204 Total general revenues 2,600,086 Change in net position (1,926,969) Net position beginning of year 3,074,153 Net position-ending 1,147,184 $ Net (Expense) Revenue and Changes in Net Position Program Revenues ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY BALANCE SHEET - GOVERNMENTAL FUNDS SEPTEMBER 30, 2022 The accompanying notes are an integral part of the financial statements 12 Southeast Downtown Industrial Improvements Project Project Total Area 2 Area 3 Area 4 Area 5 Governmental ASSETS: Pooled cash and investments 885,906 $ 337,477 $ 77,651 $ 172,173 $ 1,473,207 $ Restricted Cash: Construction funds - 3,770,857 - 4,170,946 7,941,803 Debt service reserve funds - 187,972 - 220,762 408,734 TOTAL ASSETS 885,906 $ 4,296,306 $ 77,651 $ 4,563,881 $ 9,823,744 $ LIABILITIES: Accounts payable - trade 3,188 $ 3,722 $ 448 $ 38,402 $ 45,760 $ Refundable deposits - 15,000 - - 15,000 TOTAL LIABILITIES 3,188 18,722 448 38,402 60,760 FUND BALANCES: Restricted for debt repayment - 187,972 - 220,762 408,734 Restricted for infrastructure construction - 3,770,857 - 4,170,946 7,941,803 Committed 882,718 318,755 77,203 133,771 1,412,447 TOTAL FUND BALANCES 882,718 4,277,584 77,203 4,525,479 9,762,984 TOTAL LIABILITIES AND FUND BALANCES 885,906 $ 4,296,306 $ 77,651 $ 4,563,881 $ 9,823,744 $ Reconciliation to the Statement of Net Position: Total fund equity 9,762,984 $ Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds 821,699 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 (926,374) Long-term liabilities are not due and payable in the current period, and therefore, are not reported in the funds (8,298,820) 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 1,147,184 $ ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2022 The accompanying notes are an integral part of the financial statements 13 Southeast Downtown Industrial Improvements Project Project Total Area 2 Area 3 Area 4 Area 5 Governmental REVENUE: Property Taxes 1,996,274 $ 294,710 $ 26,144 $ 274,792 $ 2,591,920 $ Interest Earned 5,942 1,375 22 623 7,962 Other 204 - - - 204 2,002,420 296,085 26,166 275,415 2,600,086 EXPENDITURES: Current: Professional services 13,889 38,505 1,220 28,831 82,445 Advertising and publishing 795 438 1 425 1,659 Insurance and bonds 602 820 84 167 1,673 Dues and subscriptions 1,679 2,231 230 460 4,600 Personnel training - - - - - Administration expense 4,135 6,673 680 2,998 14,486 Economic development support 9,000 37,250 1,250 2,500 50,000 Other purchased services - 536 - - 536 Miscellaneous expense - 33 - - 33 Cash to County for Area Closure 3,421,917 - - - 3,421,917 Bond issuance costs - 99,583 - 117,106 216,689 Capital Outlay: Urban Renewal Projects - - - 718,848 718,848 Debt service 113,786 60,305 - - 174,091 3,565,803 246,374 3,465 871,335 4,686,977 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (1,563,383) 49,711 22,701 (595,920) (2,086,891) OTHER FINANCING SOURCES (USES) Capital Contributions - - - 200,000 200,000 Bond Proceeds - 3,755,000 - 4,410,000 8,165,000 Bond Premiums - 114,627 - 97,678 212,305 - 3,869,627 - 4,707,678 8,577,305 EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (1,563,383) 3,919,338 22,701 4,111,758 6,490,414 FUND BALANCE SEPTEMBER 30, 2021 2,446,101 358,246 54,502 413,721 3,272,570 FUND BALANCE SEPTEMBER 30, 2022 882,718 $ 4,277,584 $ 77,203 $ 4,525,479 $ 9,762,984 $ Reconciliation to the Statement of Activities: Total net change in fund balances 6,490,414 $ Governmental funds report bond proceeds and premiums as revenue, but the proceeds increase long-term liabilities in the Statement of Net Position (8,377,305) 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 170,757 Governmental funds report the acquistion or construction of capital assets as expenditures, but the payment increases capital assets in the Statement of Net Assets 718,848 Revenues and expenditures in the Statement of Activities that do not provide or use current financial resources are not reported as revenues or expenditures in the funds (926,374) Amortization of deferred charges and debt discounts are recognized in the Statement of Activities, but not in the Fund Financial Statements (3,309) Change in Net Position (1,926,969) $ ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 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, 2022 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, 2022 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. Southeast Industrial 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 Southeast Industrial Project revenue allocation area. This area is in the final phase of termination. b. 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. c. 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. d. 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. 16 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 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. 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. 17 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 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, 2022, the carrying amount of the Agency’s deposits with financial institutions (after considering outstanding and other reconciling items) was $50,204 and the bank balance was $204. All funds were insured or collateralized. 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, 2022, was $9,364,806. 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. Reconciliation of carrying amount to cash numbers on the financial statements: Sources of cash: Deposits with financial institutions $ 50,204 Local Government Investment Pool, at fair value 9,364,806 US Bank Debt Service Reserve Funds 408,734 $ 9,823,744 Cash on financial statements: Pooled cash and investments $ 1,473,207 Restricted assets 8,350,537 $ 9,823,744 Note 3 – Capital Assets Capital asset activity for the fiscal year ended September 30, 2022 was as follows: 18 Balance Balance October September Governmental activities: 1, 2021 Increases Decreases 30, 2022 Land 102,851 $ 680,246 $ - $ 783,097 $ Construction in progress - 38,602 - 38,602 Net capital assets 102,851 $ 718,848 $ - $ 821,699 $ ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 Note 4 – Changes in Long Term Liabilities As of September 30, 2022, 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 2008 The Agency issued a note to provide financing to pay the cost of construction of an Urban Renewal Project. The interest rate is 4.6% for Series A and 6.55% for Series B with semi-annual interest payments due each April 1st and October 1st and annual principal payments of varying principal amounts due each April 1st. Principal payments of $29,296 for Series A and $81,155 for Series B were made on March 1, 2022. These payments paid the debt off. 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. No principal payments were made during the year ended September 30, 2022. The principal balance as of September 30, 2022 is $8,165,000 plus amortized premium of $212,305 for a total of $8,377,305. 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, 2022 cash payments of $60,306 less amortized discount of $3,144 for a total of $57,162 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. Based on previous payments, it is projected full payment will occur on or before September 1, 2024. The principal balance as of September 30, 2022 is $141,181 less unamortized discount of $7,361 for a total of $133,820. Long-term liability activity for the year ended September 30, 2022, was as follows: Balance Balance Amounts October Additional September Due Within 1, 2021 Debt Payments 30, 2022 One Year Bonds payable - Series 2008 $ 110,451 $ $ 110,451 $ $ Bonds payable - Series 2022 (including amortized premium) 8,377,305 8,377,305 20,610 Commercial Creamery (net of amortized discount) 190,982 57,162 133,820 64,101 $ 301,433 $ 8,377,305 $ 167,613 $ 8,511,125 $ 84,711 19 ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 As of September 30, 2022, 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. 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. 20 Year Ended Principal Interest Total 2023 84,101 $ 430,355 $ 514,456 $ 2024 124,719 400,085 524,804 2025 85,000 394,050 479,050 2026 140,000 390,650 530,650 2027 200,000 385,050 585,050 2028 - 2032 2,265,000 1,729,300 3,994,300 2033 - 2037 3,930,000 914,000 4,844,000 2038 - 2039 1,470,000 113,000 1,583,000 8,298,820 4,756,490 $ 13,055,310 $ Premium on bond less accumulated amortization 212,305 8,511,125 $ ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY NOTES TO FINANCIAL STATEMENTS YEAR ENDED SEPTEMBER 30, 2022 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, 2022, 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 $200,000 as a subrecipient of the ARPA funds. The Agency had identified property in Area 5 to be purchased and developed as a public recreational and sports park. These funds were used towards the purchase of the land. Note 9 – Commitments The Agency entered into a capital reimbursement agreement with developer Jerome Pacific Associates on July 7, 2022. The developer intends to construct affordable housing in Area 3. The project will also include the construction and installation of certain public infrastructures adjacent to the project. Once completed the Agency will reimburse Jerome Pacific a portion of the eligible costs not to exceed $778,329. As of September 30, 2022, the project was in the beginning phase of construction. Note 10 – Subsequent Event 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. The reimbursement will be 75% of the tax increment generated after the completion of the project but not to exceed $354,000. Note 11 – Closure of Southeast Industrial Project Area On September 27, 2022, the Agency filed the termination ordinance with the Office of the Jerome County Recorder and the Idaho State Tax Commission to terminate Southeast Industrial Project Area, more commonly known as Area 2. Prior to the end of the fiscal year of 2022 the existing surplus of $3,421,917 was remitted to the Jerome County Treasurer to be distributed to the taxing districts within the Area. $882,718 of the Area funds were held back by the Agency to pay for expenses payable in 2023. Any surplus after these expenses are paid will be remitted to the County Treasurer by September 30, 2023. 21 Southeast Downtown Industrial Improvement Restricted Fund Blalances: Area 2 Area 3 Area 4 Area 5 Total Debt payment from bond proceeds - $ 187,972 $ - $ 220,762 $ 408,734 $ Restrict for infrastructure construction - 3,770,857 - 4,170,946 7,941,803 Committed Fund Balances: Operations 882,718 318,755 77,203 133,771 1,412,447 Total Fund Balance 882,718 $ 4,277,584 $ 77,203 $ 4,525,479 $ 9,762,984 $ ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY BUDGETARY COMPARISON SCHEDULE SOUTHEAST INDUSTRIAL PROJECT AREA FUND YEAR ENDED SEPTEMBER 30, 2022 22 Over REVENUE: Original Final Actual (Under) Property Taxes 2,201,016 $ 2,001,017 $ 1,996,274 $ (4,743) $ Grant Income - - - - Refunds and reimbursements - - 204 204 Interest Earned - 3,936 5,942 2,006 Total Revenue 2,201,016 2,004,953 2,002,420 (2,533) EXPENDITURES: Current: Office supplies and postage 18 - - - Operating supplies 36 - - - Professional services 15,012 8,930 13,889 4,959 Advertising and publishing 171 295 795 500 Insurance and bonds 602 602 602 - Dues and subscriptions 1,656 1,679 1,679 - Administration expense 4,696 4,696 4,135 (561) Economic Development support 9,000 9,000 9,000 - Miscellaneous 25 25,000 - (25,000) Cash to County for Area Closure - 4,828,031 3,421,917 (1,406,114) Capital Outlay 4,037,232 - - - Debt Service 113,786 763,786 113,786 (650,000) Total expenditures 4,182,234 5,642,019 3,565,803 (2,076,216) EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (1,981,218) (3,637,066) (1,563,383) 2,073,683 OTHER FINANCING SOURCES (USES) Capital Contributions - - - - Bond Proceeds - - - - Bond Premiums - - - - Total other financing sources(uses) - - - - EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (1,981,218) $ (3,637,066) $ (1,563,383) $ 2,073,683 $ Budgeted Amounts ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY BUDGETARY COMPARISON SCHEDULE DOWNTOWN IMPROVEMENT AREA FUND YEAR ENDED SEPTEMBER 30, 2022 23 Over REVENUE: Original Final Actual (Under) Property Taxes 332,052 $ 332,052 $ 294,710 $ (37,342) $ Grant Income - - - - Interest Earned - - 1,375 1,375 Total Revenue 332,052 332,052 296,085 (35,967) EXPENDITURES: Current: Office supplies and postage 25 25 - (25) Operating supplies 49 49 - (49) Professional services 20,433 20,433 38,505 18,072 Advertising and publishing 233 233 438 205 Insurance and bonds 820 820 820 - Dues and subscriptions 2,254 2,254 2,231 (23) Administration expense 6,392 6,392 6,673 281 Economic Development support 37,250 37,250 37,250 - Other purchased services - - 536 536 Miscellaneous 25 25 33 8 Bond issuance costs - - 99,583 99,583 Capital Outlay - Construction 596,831 596,831 - (596,831) Debt Service 68,490 68,490 60,305 (8,185) Total expenditures 732,802 732,802 246,374 (486,428) EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (400,750) (400,750) 49,711 450,461 OTHER FINANCING SOURCES (USES) Capital Contributions - - - - Bond Proceeds - - 3,755,000 3,755,000 Bond Premiums - - 114,627 114,627 Total other financing sources(uses) - - 3,869,627 3,869,627 EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (400,750) $ (400,750) $ 3,919,338 $ 4,320,088 $ Budgeted Amounts ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY BUDGETARY COMPARISON SCHEDULE AREA 4 FUND YEAR ENDED SEPTEMBER 30, 2022 24 Over REVENUE: Original Final Actual (Under) Property Taxes 28,132 $ 28,132 $ 26,144 $ (1,988) $ Grant Income - - - - Interest Earned - - 22 22 Total Revenue 28,132 28,132 26,166 (1,966) EXPENDITURES: Current: Office supplies and postage 3 3 - Operating supplies 5 5 - Professional services 2,085 2,085 1,220 (865) Advertising and publishing 24 24 1 (23) Insurance and bonds 84 84 84 - Dues and subscriptions 230 230 230 - Administration expense 652 652 680 28 Economic Development support 1,250 1,250 1,250 - Miscellaneous 25 25 - (25) Capital Outlay - Construction 77,918 77,918 - (77,918) Debt Service - - - - Total expenditures 82,276 82,276 3,465 (78,811) EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (54,144) (54,144) 22,701 76,845 OTHER FINANCING SOURCES (USES) Capital Contributions - - - - Bond Proceeds - - - - Bond Premiums - - - - Total other financing sources(uses) - - - - EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (54,144) $ (54,144) $ 22,701 $ 76,845 $ Budgeted Amounts ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY BUDGETARY COMPARISON SCHEDULE AREA 5 FUND YEAR ENDED SEPTEMBER 30, 2022 25 Over REVENUE: Original Final Actual (Under) Property Taxes 311,745 $ 311,745 $ 274,792 $ (36,953) $ Grant Income - - - - Interest Earned - - 623 623 Total Revenue 311,745 311,745 275,415 (36,330) EXPENDITURES: Current: Office supplies and postage 5 5 - Operating supplies 10 10 - (10) Professional services 4,170 4,170 28,831 24,661 Advertising and publishing 48 48 425 377 Insurance and bonds 167 167 167 - Dues and subscriptions 460 460 460 - Administration expense 1,304 1,304 2,998 1,694 Economic Development support 2,500 2,500 2,500 - Miscellaneous 25 25 - (25) Bond issuance costs - - 117,106 117,106 Capital Outlay - Construction 722,460 722,460 718,848 (3,612) Debt Service - - - - Total expenditures 731,149 731,149 871,335 140,186 EXCESS OF REVENUE OVER (UNDER) EXPENDITURES (419,404) (419,404) (595,920) (176,516) OTHER FINANCING SOURCES (USES) Capital Contributions - - 200,000 200,000 Bond Proceeds - - 4,410,000 4,410,000 Bond Premiums - - 97,678 97,678 Total other financing sources(uses) - - 4,707,678 4,707,678 EXCESS OF REVENUE AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES (419,404) $ (419,404) $ 4,111,758 $ 4,531,162 $ Budgeted Amounts ---PAGE BREAK--- JEROME URBAN RENEWAL AGENCY NOTES TO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED SEPTEMBER 30, 2022 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 an excess of expenditures over appropriations for Area 5. All other Area Funds Budgetary Comparison Schedules show less expenditures than appropriated. 26 ---PAGE BREAK--- Certified Public Accountants March 29, 2023 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 Board of Commissioners Jerome Urban Renewal Agency Jerome, Idaho 83338 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 and each major fund of the Jerome Urban Renewal Agency (Agency), a component unit of the City of Jerome, Idaho, as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the Agency’s basic financial statements and have issued our report thereon dated March 29, 2023. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the 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 Agency’s internal control. Accordingly, we do not express an opinion on the effectiveness of the 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 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. 27 ---PAGE BREAK--- Compliance and Other Matters As part of obtaining reasonable assurance about whether the 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. 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. 28 ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL BALANCE SHEET SEPTEMBER 30, 2023 URBAN RENEWAL - SE INDUSTRIAL FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 02/16/2024 02:05PM PAGE: 2 LIABILITIES AND EQUITY FUND EQUITY 09-00-00-2500 FUND BALANCE 882,718.35 UNAPPROPRIATED FUND BALANCE: REVENUE OVER EXPENDITURES - YTD ( 882,718.35) BALANCE - CURRENT DATE ( 882,718.35) TOTAL FUND EQUITY .00 TOTAL LIABILITIES AND EQUITY .00 ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL REVENUES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING SEPTEMBER 30, 2023 URBAN RENEWAL - SE INDUSTRIAL PERIOD ACTUAL YTD ACTUAL BUDGET UNEARNED PCNT FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 02/16/2024 02:05PM PAGE: 3 SOURCE 00 09-00-00-3373 INTEREST EARNED .00 23,780.39 .00 ( 23,780.39) .0 TOTAL SOURCE 00 .00 23,780.39 .00 ( 23,780.39) .0 TOTAL FUND REVENUE .00 23,780.39 .00 ( 23,780.39) .0 ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING SEPTEMBER 30, 2023 URBAN RENEWAL - SE INDUSTRIAL PERIOD ACTUAL YTD ACTUAL BUDGET UNEXPENDED PCNT FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 02/16/2024 02:05PM PAGE: 4 DEPARTMENT 00 09-00-00-4142 PROFESSIONAL SERVICES .00 1,086.45 .00 ( 1,086.45) .0 09-00-00-4169 MISCELLANEOUS EXPENSE .00 .00 25,000.00 25,000.00 .0 09-00-00-4179 ECON. DEV. REIMBURSE PAYMENTS .00 863,318.90 650,000.00 ( 213,318.90) 132.8 09-00-00-4200 CLOSE OUT CASH TO COUNTY .00 42,093.39 .00 ( 42,093.39) .0 TOTAL DEPARTMENT 00 .00 906,498.74 675,000.00 ( 231,498.74) 134.3 TOTAL FUND EXPENDITURES .00 906,498.74 675,000.00 ( 231,498.74) 134.3 NET REVENUE OVER EXPENDITURES .00 ( 882,718.35) ( 675,000.00) 207,718.35 (130.8) ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL BALANCE SHEET SEPTEMBER 30, 2023 URBAN RENEWAL - AREA 3 FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 02/16/2024 02:05PM PAGE: 5 ASSETS 10-00-00-1000 CASH IN POOLED CASH FUND 295,715.67 10-00-00-1003 AREA 3 CONSTRUCTION LGIP 3039 3,948,123.35 10-00-00-1004 DEBT SERVICE RESERVE '22A BOND 195,823.99 TOTAL ASSETS 4,439,663.01 LIABILITIES AND EQUITY LIABILITIES 10-00-00-2001 ACCOUNTS PAYABLE 2,864.84 TOTAL LIABILITIES 2,864.84 FUND EQUITY 10-00-00-2500 FUND BALANCE 4,277,585.62 UNAPPROPRIATED FUND BALANCE: REVENUE OVER EXPENDITURES - YTD 159,212.55 BALANCE - CURRENT DATE 159,212.55 TOTAL FUND EQUITY 4,436,798.17 TOTAL LIABILITIES AND EQUITY 4,439,663.01 ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL REVENUES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING SEPTEMBER 30, 2023 URBAN RENEWAL - AREA 3 PERIOD ACTUAL YTD ACTUAL BUDGET UNEARNED PCNT FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 02/16/2024 02:05PM PAGE: 6 SOURCE 00 10-00-00-3001 TAX INCREMENT REVENUE - DOWNTO .00 268,181.50 288,689.00 20,507.50 92.9 10-00-00-3249 PERSONAL PROPERTY REPLACEMENT .00 6,591.25 5,694.00 ( 897.25) 115.8 10-00-00-3373 INTEREST EARNED .00 199,553.61 .00 ( 199,553.61) .0 TOTAL SOURCE 00 .00 474,326.36 294,383.00 ( 179,943.36) 161.1 TOTAL FUND REVENUE .00 474,326.36 294,383.00 ( 179,943.36) 161.1 ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING SEPTEMBER 30, 2023 URBAN RENEWAL - AREA 3 PERIOD ACTUAL YTD ACTUAL BUDGET UNEXPENDED PCNT FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 02/16/2024 02:05PM PAGE: 7 DEPARTMENT 00 10-00-00-4131 OFFICE SUPPLIES & POSTAGE .00 .00 25.00 25.00 .0 10-00-00-4132 OPERATING SUPPLIES .00 .00 49.00 49.00 .0 10-00-00-4142 PROFESSIONAL SERVICES .00 19,498.25 28,232.00 8,733.75 69.1 10-00-00-4144 ADVERTISING & PUBLISHING .00 321.48 233.00 ( 88.48) 138.0 10-00-00-4146 INSURANCE & BONDS .00 860.93 862.00 1.07 99.9 10-00-00-4148 DUES & SUBSCRIPTIONS .00 2,254.00 833.00 ( 1,421.00) 270.6 10-00-00-4157 INTEREST EXPENSE/DEBT SERVICE .00 212,425.00 212,425.00 .00 100.0 10-00-00-4163 OTHER PURCHASED SERVICES .00 1,506.64 536.00 ( 970.64) 281.1 10-00-00-4169 MISCELLANEOUS EXPENSE .00 .00 25.00 25.00 .0 10-00-00-4179 ECON. DEV. REIMBURSE PAYMENTS .00 58,208.18 64,000.00 5,791.82 91.0 10-00-00-4186 ADMINISTRATION EXPENSE .00 7,789.33 7,595.00 ( 194.33) 102.6 10-00-00-4187 ECONOMIC DEVELOPMENT SUPPORT .00 12,250.00 12,250.00 .00 100.0 10-00-00-4276 CAP OUTLAY - INFRASTRUCTURE .00 .00 315,893.00 315,893.00 .0 10-00-00-4279 CAPITAL OUTLAY - CONSTRUCTION .00 .00 157,456.00 157,456.00 .0 TOTAL DEPARTMENT 00 .00 315,113.81 800,414.00 485,300.19 39.4 TOTAL FUND EXPENDITURES .00 315,113.81 800,414.00 485,300.19 39.4 NET REVENUE OVER EXPENDITURES .00 159,212.55 ( 506,031.00) ( 665,243.55) 31.5 ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL BALANCE SHEET SEPTEMBER 30, 2023 URBAN RENEWAL - AREA 4 FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 02/16/2024 02:05PM PAGE: 8 ASSETS 11-00-00-1000 CASH IN POOLED CASH FUND 98,413.12 TOTAL ASSETS 98,413.12 LIABILITIES AND EQUITY LIABILITIES 11-00-00-2001 ACCOUNTS PAYABLE 186.03 TOTAL LIABILITIES 186.03 FUND EQUITY 11-00-00-2500 FUND BALANCE 77,202.60 UNAPPROPRIATED FUND BALANCE: REVENUE OVER EXPENDITURES - YTD 21,024.49 BALANCE - CURRENT DATE 21,024.49 TOTAL FUND EQUITY 98,227.09 TOTAL LIABILITIES AND EQUITY 98,413.12 ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL REVENUES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING SEPTEMBER 30, 2023 URBAN RENEWAL - AREA 4 PERIOD ACTUAL YTD ACTUAL BUDGET UNEARNED PCNT FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 02/16/2024 02:05PM PAGE: 9 SOURCE 00 11-00-00-3001 TAX INCREMENT REV-AREA 4 .00 22,717.03 25,562.00 2,844.97 88.9 11-00-00-3249 PERSONAL PROP REPLACEMENT .00 672.58 581.00 ( 91.58) 115.8 11-00-00-3373 INTEREST EARNED .00 3,297.59 .00 ( 3,297.59) .0 TOTAL SOURCE 00 .00 26,687.20 26,143.00 ( 544.20) 102.1 TOTAL FUND REVENUE .00 26,687.20 26,143.00 ( 544.20) 102.1 ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING SEPTEMBER 30, 2023 URBAN RENEWAL - AREA 4 PERIOD ACTUAL YTD ACTUAL BUDGET UNEXPENDED PCNT FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 02/16/2024 02:05PM PAGE: 10 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 .00 3,126.78 1,240.00 ( 1,886.78) 252.2 11-00-00-4144 ADVERTISING & PUBLISHING .00 32.80 24.00 ( 8.80) 136.7 11-00-00-4146 INSURANCE & BONDS .00 87.85 88.00 .15 99.8 11-00-00-4148 DUES & SUBSCRIPTIONS .00 230.00 85.00 ( 145.00) 270.6 11-00-00-4169 MISCELLANEOUS EXPENSE .00 .00 25.00 25.00 .0 11-00-00-4186 ADMINISTRATION EXPENSE .00 935.28 775.00 ( 160.28) 120.7 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 99,812.00 99,812.00 .0 TOTAL DEPARTMENT 00 .00 5,662.71 103,307.00 97,644.29 5.5 TOTAL FUND EXPENDITURES .00 5,662.71 103,307.00 97,644.29 5.5 NET REVENUE OVER EXPENDITURES .00 21,024.49 ( 77,164.00) ( 98,188.49) 27.3 ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL BALANCE SHEET SEPTEMBER 30, 2023 URBAN RENEWAL - AREA 5 FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 02/16/2024 02:05PM PAGE: 11 ASSETS 12-00-00-1000 CASH IN POOLED CASH FUND 35,780.28 12-00-00-1003 AREA 5 CONSTRUCTION LGIP 3040 3,326,568.53 12-00-00-1004 DEBT SERVICE RESERVE '22B BOND 229,981.50 12-00-00-1080 RESTR CASH - AREA 5 ARPA FUND 2,238,908.00 TOTAL ASSETS 5,831,238.31 LIABILITIES AND EQUITY LIABILITIES 12-00-00-2001 ACCOUNTS PAYABLE 251,949.76 TOTAL LIABILITIES 251,949.76 FUND EQUITY 12-00-00-2500 FUND BALANCE 4,525,477.20 UNAPPROPRIATED FUND BALANCE: REVENUE OVER EXPENDITURES - YTD 1,053,811.35 BALANCE - CURRENT DATE 1,053,811.35 TOTAL FUND EQUITY 5,579,288.55 TOTAL LIABILITIES AND EQUITY 5,831,238.31 ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL REVENUES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING SEPTEMBER 30, 2023 URBAN RENEWAL - AREA 5 PERIOD ACTUAL YTD ACTUAL BUDGET UNEARNED PCNT FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 02/16/2024 02:05PM PAGE: 12 SOURCE 00 12-00-00-3001 TAX INCREMENT AREA 5 .00 241,724.66 273,564.00 31,839.34 88.4 12-00-00-3232 GRANT INCOME .00 2,238,908.00 2,238,908.00 .00 100.0 12-00-00-3249 PERSONAL PROP REPLACEMENT .00 6,187.71 5,345.00 ( 842.71) 115.8 12-00-00-3373 INTEREST EARNED .00 204,009.99 .00 ( 204,009.99) .0 TOTAL SOURCE 00 .00 2,690,830.36 2,517,817.00 ( 173,013.36) 106.9 TOTAL FUND REVENUE .00 2,690,830.36 2,517,817.00 ( 173,013.36) 106.9 ---PAGE BREAK--- CITY OF JEROME - URBAN RENEWAL EXPENDITURES WITH COMPARISON TO BUDGET FOR THE 12 MONTHS ENDING SEPTEMBER 30, 2023 URBAN RENEWAL - AREA 5 PERIOD ACTUAL YTD ACTUAL BUDGET UNEXPENDED PCNT FOR ADMINISTRATION USE ONLY 100 % OF THE FISCAL YEAR HAS ELAPSED 02/16/2024 02:05PM PAGE: 13 DEPARTMENT 00 12-00-00-4131 OFFICE SUPPLIES & POSTAGE .00 .00 23.00 23.00 .0 12-00-00-4132 OPERATING SUPPLIES .00 .00 46.00 46.00 .0 12-00-00-4142 PROFESSIONAL SERVICES .00 33,215.46 11,728.00 ( 21,487.46) 283.2 12-00-00-4144 ADVERTISING & PUBLISHING .00 301.79 219.00 ( 82.79) 137.8 12-00-00-4146 INSURANCE & BONDS .00 808.22 810.00 1.78 99.8 12-00-00-4148 DUES & SUBSCRIPTIONS .00 2,116.00 782.00 ( 1,334.00) 270.6 12-00-00-4157 INTEREST EXPENSE/DEBT SERVICE .00 234,403.75 234,404.00 .25 100.0 12-00-00-4163 OTHER PURCHASED SERVICES .00 1,033.50 .00 ( 1,033.50) .0 12-00-00-4169 MISCELLANEOUS EXPENSE .00 1,041.58 25.00 ( 1,016.58) 4166.3 12-00-00-4179 ECON. DEV. REIMBURSE PAYMENTS .00 968,893.46 .00 ( 968,893.46) .0 12-00-00-4186 ADMINISTRATION EXPENSE .00 6,879.69 7,130.00 250.31 96.5 12-00-00-4187 ECONOMIC DEVELOPMENT SUPPORT .00 11,500.00 11,500.00 .00 100.0 12-00-00-4275 CAP OUTLAY - SOUTH SIDE PARK .00 376,825.56 2,238,908.00 1,862,082.44 16.8 12-00-00-4279 CAPITAL OUTLAY - CONSTRUCTION .00 .00 176,936.00 176,936.00 .0 TOTAL DEPARTMENT 00 .00 1,637,019.01 2,682,511.00 1,045,491.99 61.0 TOTAL FUND EXPENDITURES .00 1,637,019.01 2,682,511.00 1,045,491.99 61.0 NET REVENUE OVER EXPENDITURES .00 1,053,811.35 ( 164,694.00) ( 1,218,505.35) 639.9 ---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 $ 3,735,000.00 $ Series 2022B US Bank 9/1/2035 4.83% 4,410,000.00 $ 4,410,000.00 $ Other Debt: Misc. Payable Commerical Creamery 9/1/2024 5.50% 300,000.00 $ 82,972.24 $ Total Oustanding Debt 8,227,972.24 $ Jerome Urban Renewal Agency Bond & Debt Schedule For Fiscal Year Ending September 30, 2023