HomeMy WebLinkAbout2024 Annual Report + Exhibits104 East Fairview Avenue #239
Meridian, Idaho, 83642
(208) 830-7786
meridiandevelopmentcorp@gmail.com
2024 ANNUAL
REPORT
CONTENTS
Letter from the Chairman
Leadership
Board of Commissioners
Ten Mile Urban Renewal District
Linder District Urban Renewal District
Appendix A: Financial Audit
Appendix B: 2024 BudgetDowntown Urban Renewal District
Union District Urban Renewal District
Northern Gateway Urban Renewal District
4
6
7
24
28
32
349
16
20
2024 was another challenging year for redevelopment in many of MDC’s urban renewal districts.
Higher interest rates and construction costs continue to render many proposed projects financially
unfeasible. Despite these challenges, MDC remains committed to advancing key initiatives.
Through strategic collaboration and creative problem-solving, we are exploring ways to mitigate
these barriers and bring meaningful projects to fruition.
A significant focus remains on implementing key components of the updated Destination:
Downtown Master Plan. This initiative continues to serve as a roadmap for enhancing downtown’s
vibrancy, economic vitality, and long-term sustainability. Additionally, we are coordinating with all
stakeholders involved in the Union 93 project to explore viable pathways for restarting construction
and ensuring its successful completion.
As we approach the final stages of the original Downtown District, which is set to sunset in less
than two years, we are strategically planning the remaining projects that have the potential to
be among the most impactful investments in MDC’s history. This pivotal phase represents an
opportunity to solidify the legacy of urban renewal efforts while maximizing the benefits for the
community.
The opening of Scheel’s in the Ten Mile District last year created quality employment
opportunities, expanded the local property tax base, and boosted the statewide sales tax revenue.
That district continues to showcase the positive impact of urban renewal on a wide range of
beneficiaries.
To strengthen governance and ensure effective decision-making, we have restructured our board
to include a seat for the City Council representative from District 3. Given that much of the original
Downtown urban renewal district falls within this area, this addition ensures local leadership
remains closely involved in guiding the district’s initiatives.
Even with the challenges of the past year, our board remains committed to revitalizing key parts of
Meridian through urban renewal. Urban renewal gives us a powerful tool to improve community
infrastructure, increase economic vitality and attract new development. We look forward to the
year ahead and identifying how we can continue to use urban renewal to meet the needs of our
growing community.
LETTER FROM
THE CHAIRMAN
Our board remains committed to revitalizing key
parts of Meridian through urban renewal. Urban
renewal gives us a powerful tool to improve
community infrastructure, increase economic
vitality and attract new development. We look
forward to the year ahead and identifying how
we can continue to use urban renewal to meet
the needs of our growing community.
D avid Winder
David Winder
Chairman
4 2024 ANNUAL REPORT 2024 ANNUAL REPORT 5
LEADERSHIP
TEAM
BOARD OF
COMMISSIONERS
Dan Basalone
Doug Taylor (Joined in September)
Robert Simison
Kit Fitzgerald
Diane Bevan (left in September)
Councilman Brad Hoaglun
Rob McCarvel
DAVID WINDER
Chairman
NATHAN MUELLER
Vice-Chairman
STEVE VLASSEK
Secretary/Treasurer
The Meridian Development Corp was
established to function as the City’s urban
renewal agency. MDC is governed by a
ten-member Board of Commissioners
appointed by the Mayor and City Council for
rotating three-year terms.
76 2024 ANNUAL REPORT 2024 ANNUAL REPORT
2002
2026
73
Created
Sunsets
Total Acres
DOWNTOWN URBAN
RENEWAL DISTRICT
The Downtown Urban Renewal District has brought renewed energy
into the heart of the city by providing support for small businesses,
investing in critical infrastructure improvements and spurring
economic growth.
2024 ANNUAL REPORT 9
2024 Highlights
DESTINATION: DOWNTOWN
ǔɎƺȸȅȒȸƺɎǝƏȇɎɯȒɵƺƏȸɀȒǔƳƺƳǣƬƏɎƺƳɯȒȸǸɯǣɎǝǼȒƬƏǼɀɎƏǸƺǝȒǼƳƺȸɀًƺǼƺƬɎƺƳȒǔˡƬǣƏǼɀƏȇƳǣȇƳɖɀɎȸɵ
experts, MDC adopted an updated Destination: Downtown Master Plan. The document establishes
cohesive design standards for downtown, outlines a parking strategy and gives decision makers
a framework to guide important public policy and development decisions today and well into the
future.
Parking has long been a challenge in downtown, which is why it was a critical focus in the
Destination: Downtown update. A parking subcommittee, made up of downtown stakeholders,
worked alongside Rick Williams Consulting to develop parking management solutions tailored
for downtown’s unique needs. The resulting parking plan prioritizes on-street parking plan for
customers and residents who live near downtown and encourages shared off-street parking
facilities for employers and employees. Recommendations were designed to keep parking
affordable and adaptable to Meridian’s needs.
The design standards established in Destination: Downtown will help ensure downtown maintains
a distinct and cohesive feel as it continues to grow. The plan recommended establishing the
Traditional City Core District to make sure buildings follow set architectural design standards, uses
and height standards to preserve the existing historical characteristics of downtown and carry those
forward in future developments.
The original Destination: Downtown Master Plan was created in 2010. The update to the plan, which
was led by Vitruvian Planning, will help chart the course of the Downtown, Union and Northern
Gateway Urban Renewal Districts for the next several decades.
The design standards established in Destination:
Downtown will help ensure downtown maintains a
distinct and cohesive feel as it continues to grow.
1110 2024 ANNUAL REPORT 2024 ANNUAL REPORT
CONCERTS ON B ROADWAY
MDC was proud to be one of the sponsors for the 16th season of Concerts on Broadway. In 2024, the
Meridian Arts Commission invited Afrosonics, Steve Fulton’s UltraMuse and Summer Groove Party
Band to perform. More than 1,000 people to downtown Meridian across three separate Saturday
evenings in August and September.
FAÇADE IMPROVEMENT GRANTS
In 2024, the Meridian Development Corporation awarded three façade improvement grants to
downtown businesses.
Loose Screw Beer Company took a vacant building and transformed it into a brewery and
community gathering spot. The building had been vacant for 15 years. The façade improvement
grant from MDC allowed the owners of Loose Screw Beer Company to update the windows, replace
the siding, add new exterior lighting and an outdoor beer garden. In total, MDC contributed $116,373
to the improvements.
Eight Thirty Common, a longtime favorite dining spot in downtown, partnered with MDC to
expand their patio next to Generations Park and add new fencing. The project helped increase
ȒɖɎƳȒȒȸɀƺƏɎǣȇǕƏɎɎǝƺȸƺɀɎƏɖȸƏȇɎƏȇƳƫƺɎɎƺȸƬƏȅȒɖˢƏǕƺɎǝƺȵƏȸǸǣȇǕǼȒɎƏȇƳɎȸƏɀǝƬȒȇɎƏǣȇƺȸɀِx(!
paid for half of the $40,000 upgrades.
Kilgore LLC applied for a façade improvement grant to landscape the salon at Meridian Road and
Carlton Avenue and add a ramp to make the building more accessible for the community. The new
trees, plants and hardscape create a more welcoming environment. MDC gave Kilgore LLC $15,000
to help with the project.
Since its formation, MDC has awarded more than
$420,000 in façade improvement grants to downtown
business owners.
NINE MILE FLOODPLAIN
XȇאאגًɎǝƺ!ǣɎɵȒǔxƺȸǣƳǣƏȇȸƺƬƺǣɮƺƳƏڟזًǕȸƏȇɎǔȸȒȅɎǝƺXƳƏǝȒ ǔˡƬƺȒǔ0ȅƺȸǕƺȇƬɵ
Management through FEMA to begin work to remove 78 acres and 41 buildings from the Nine Mile
Floodplain in downtown. The City and MDC have been working together to solve this issue for the
past 14 years.
ÁȒȸƺȅȒɮƺȵȸȒȵƺȸɎǣƺɀƫƺɎɯƺƺȇIȸƏȇǸǼǣȇ«ȒƏƳƏȇƳɎǝƺÈȇǣȒȇ¨ƏƬǣˡƬ«ƏǣǼȸȒƏƳǼǣȇƺɎǝƏɎǔƏǼǼɯǣɎǝǣȇɎǝƺ
ٮɵƺƏȸٮˢȒȒƳȵǼƏǣȇƫȒɖȇƳƏȸɵًɯȒȸǸɯǣǼǼȇƺƺƳɎȒƫƺƳȒȇƺɎȒǣȇɀɎƏǼǼƬɖǼɮƺȸɎɀƏȇƳǣȅȵȸȒɮƺƬǝƏȇȇƺǼ
and drainage infrastructure along Nine Mile Creek. The grant allowed MDC to complete the design
drawings and start the permitting process.
12 2024 ANNUAL REPORT 2024 ANNUAL REPORT 13
OKTOBERFEST
MDC was proud to sponsor the Meridian Chamber of Commerce’s third annual Oktoberfest.
The event, which featured beer gardens, food trucks, live music, a cornhole tournament and
even costume, strudel eating and keg tossing contests, brought an estimated 11,000 people into
downtown. In addition to providing a fun event for the community, the Meridian Chamber of
!ȒȅȅƺȸƬƺƏǼɀȒɯȒȸǸƺƳɎȒǕǣɮƺǼȒƬƏǼƫɖɀǣȇƺɀɀȒɯȇƺȸɀƏƫȒȒɀɎƫɵǣȇƬȸƺƏɀǣȇǕǔȒȒɎɎȸƏǔˡƬɎǝȸȒɖǕǝȒɖɎ
the day-long event. The event will return to downtown in 2025.
MDC was proud to sponsor the Meridian Chamber of
Commerce’s third annual Oktoberfest and worked to
give local business owners a boost by increasing foot
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PUBLIC ART
MDC invested nearly $4,000 to bring more public artwork into the community. In collaboration with
the Meridian Arts Commission, and with the support of Valley Regional Transit, MDC took local artist
Antonia Hedrick’s work and and transformed it into a vinyl wrap for a bus shelter at 3rd Avenue and
Pine Street. Another bus shelter in Ten Mile Crossing was wrapped with Blake Coker’s art.
14 2024 ANNUAL REPORT 2024 ANNUAL REPORT 15
2020
2040
16
Created
Sunsets
Total Acres
UNION DISTRICT URBAN
RENEWAL DISTRICT
The smallest of Meridian’s urban renewal districts, the Union District
presents a huge opportunity to spark new investment and create a
high-density, mixed-use urban neighborhood in a former industrial
zone.
2024 ANNUAL REPORT 17
This project will give future developers more
usable square footage and increased value of the
Civic Block by $600,000
MDC remains committed to helping the site of the Union 93 project reach its full potential.
ÈȇǔȒȸɎɖȇƏɎƺǼɵًɎǝƺȒȸǣǕǣȇƏǼƳƺɮƺǼȒȵƺȸɀȒǔɎǝƺȵȸȒǴƺƬɎȸƏȇǣȇɎȒˡȇƏȇƬǣƏǼƏȇƳǼƺǕƏǼɎȸȒɖƫǼƺɀɯǣɎǝɎǝƺ
project and construction halted in 2022. Today, there are several developers who have expressed
interest in the property and resuming work on a large, mixed-use development.
To remove site constraints and open up development opportunities in downtown, MDC paid to have
the Hunter Lateral relocated, so it no longer runs through the Civic Block. The Civic Block includes
properties owned by MDC and the City of Meridian, including the Meridian Community Center,
Centennial Park and the MDC-owned parking lot associated with the COMPASS and Valley Regional
Transit Building.
Now, the Hunter Lateral runs parallel to Idaho and East Third Street. This project will give future
developers more usable square footage and, according to one appraisal, increased the value of the
Civic Block by $600,000.
Union 93
Hunter Lateral
Relocated
18 2024 ANNUAL REPORT 2024 ANNUAL REPORT 19
2021
2041
126
Created
Sunsets
Total Acres
NORTHERN GATEWAY
URBAN RENEWAL
DISTRICT
The smallest of Meridian’s urban renewal districts, the Union District
presents a huge opportunity to spark new investment and create a
high-density, mixed-use urban neighborhood in a former industrial
zone.
2024 ANNUAL REPORT 21
2024
Highlights
The Northern Gateway Urban Renewal District hit its second
year in 2024.
Two thousand and twenty-four marked the Northern Gateway Urban Renewal District’s
second year. MDC adopted the Destination: Downtown Master Plan Update, which will help
guide development decisions, and continued to identify what investments would improve the
long-term vibrancy of downtown. MDC also worked on finalizing the District’s foundational
documents.
22 2024 ANNUAL REPORT 2024 ANNUAL REPORT 23
2016
2036
301
Created
Sunsets
Total Acres
TEN MILE URBAN
RENEWAL DISTRICT
The Ten Mile Urban Renewal District was created to rapidly take
an underdeveloped section of the city and transform it into an
employment and economic hub. The District is home to more than
900 residents and 1,100 employees.
2024 ANNUAL REPORT 25
2024
Highlights
More development is coming
to the Ten Mile Urban
Renewal District, including
200 additional apartments
and another 95,000 square
ǔƺƺɎȒǔȒǔˡƬƺɀȵƏƬƺِ
The development at Ten Mile has boomed over the last decade and urban renewal has played
a huge part in the transformation. Tax increment financing has helped Brighton Corporation
create a key economic and employment hub for the community in less than a decade.
The Ten Mile Urban Renewal District was simply empty fields in 2016. Today, it is home
to several major employers, including AmeriBen and Paylocity, three premier apartment
complexes and the entertainment and retail giant SCHEELS.
More development is on the horizon including 200 additional apartments and another 95,000
square feet of office space. Half of the land in the Ten Mile Urban Renewal is developed at this
point. Brighton Corporation has big plans for the remaining land but will continue to ensure
future development meets the needs of the community.
272024 ANNUAL REPORT26 2024 ANNUAL REPORT
2021
2041
171
Created
Sunsets
Total Acres
LINDER URBAN
RENEWAL DISTRICT
The Linder Urban Renewal District is located at an important
transportation crossroads and designed to help improve connection
across Meridian. Building the Linder Road Overpass will spur new
growth and bring more jobs to the community.
2024 ANNUAL REPORT 29
2024
Highlights
LINDER OVERPASS MOVING
AHEAD
The City of Meridian, Ada County Highway
District (ACHD) and Idaho Transportation
Department want drivers to be able to use
the Linder Road Overpass by the end of 2027.
Currently, design drawings for the project are 99
percent complete and half of the right-of-way
land has been acquired.
The City of Meridian, Ada County Highway
District (ACHD) and Idaho Transportation
Department have opted to divide the project
ǣȇɎȒɎɯȒȵǝƏɀƺɀِÁǝƺˡȸɀɎȵǝƏɀƺɯǣǼǼǣȇƬǼɖƳƺ
intersection improvements at Overland Road
and Linder Road. With design drawings
essentially complete, construction on this
phase of the project will likely commence in
the second quarter of 2025 and wrap up in the
summer.
The second, larger phase of project includes
building the Linder Road Overpass, widening
Linder Road north of the freeway and
improving the intersection at Franklin Road and
Waltman Street. These projects will total more
than $24 million. Construction on the overpass
is targeted to start in the summer of 2026 and
continue through 2027.
30 2024 ANNUAL REPORT 2024 ANNUAL REPORT 31
Appendix A: FY2023 Audit
and FY2024 Budget
32 2024 ANNUAL REPORT 2024 ANNUAL REPORT 33
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1
December 4, 2023
To the Members of the Board of Commissioners
Meridian Development Corporation
Meridian, Idaho
We have audited the financial statements of Meridian Development Corporation (MDC) as of and for the year
ended September 30, 2023, and have issued our report thereon dated December 4, 2023. Professional
standards require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing
Standards and Government Auditing Standards
As communicated in our letter dated September 7, 2023, our responsibility, as described by professional
standards, is to form and express an opinion about whether the financial statements that have been prepared
by management with your oversight are presented fairly, in all material respects, in accordance with accounting
principles generally accepted in the United States of America. Our audit of the financial statements does not
relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the financial statements are free of material
misstatement. An audit of financial statements includes consideration of internal control over financial reporting
as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly,
as part of our audit, we considered the internal control of MDC solely for the purpose of determining our audit
procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional
judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not
required to design procedures for the purpose of identifying other matters to communicate to you.
We have provided our comments regarding internal control during our audit in our 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 dated December 4, 2023.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
2
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement,
if applicable, have complied with all relevant ethical requirements regarding independence.
Qualitative Aspects of the Entity’s Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the
significant accounting policies adopted by MDC is included in Note 2 to the financial statements. There have
been no initial selection of accounting policies and no changes in significant accounting policies or their
application during 2023. No matters have come to our attention that would require us, under professional
standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the
effect of significant accounting policies in controversial or emerging areas for which there is a lack of
authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based
on management’s current judgments. Those judgments are normally based on knowledge and experience about
past and current events and assumptions about future events. Certain accounting estimates are particularly
sensitive because of their significance to the financial statements and because of the possibility that future
events affecting them may differ markedly from management’s current judgments. No such significant
accounting estimates were identified.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of
their significance to financial statement users. There were no financial statement disclosures that we consider to
be particularly sensitive or involve significant judgment.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely
misstatements identified during the audit, other than those that we believe are trivial, and communicate them
to the appropriate level of management. Further, professional standards require us to also communicate the
effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account
balances or disclosures, and the financial statements as a whole. Uncorrected misstatements or matters
underlying those uncorrected misstatements could potentially cause future‐period financial statements to be
materially misstated, even though the uncorrected misstatements are immaterial to the financial statements
currently under audit. There were no uncorrected or corrected misstatements identified as a result of our audit
procedures.
3
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter,
whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter,
which could be significant to the MDC’s financial statements or the auditor’s report. No such disagreements
arose during the course of the audit.
Circumstances that Affect the Form and Content of the Auditor’s Report
For purposes of this letter, professional standards require that we communicate any circumstances that affect
the form and content of our auditor’s report. We did not identify and circumstances that affect the form and
content of the auditor’s report.
Representations Requested from Management
We have requested certain written representations from management which are included in the management
representation letter dated December 4, 2023.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters. Management informed us that, and to our knowledge, there were no consultations with other
accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with MDC, we generally discuss a variety of matters,
including the application of accounting principles and auditing standards, significant events or transactions that
occurred during the year, operating conditions affecting the entity, and operating plans and strategies that may
affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention
as MDC’s auditors.
This report is intended solely for the information and use of the Board of Commissioners, and management of
MDC and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
Boise, Idaho
MERIDIAN DEVELOPMENT CORPORATION
FINANCIAL STATEMENTS AND
REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2023
MERIDIAN DEVELOPMENT CORPORATION
TABLE OF CONTENTS
YEAR ENDED SEPTEMBER 30, 2023
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 3
FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 10
STATEMENT OF ACTIVITIES 11
GOVERNMENTAL FUNDS BALANCE SHEET 12
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES – GOVERNMENTAL FUNDS 13
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION 14
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES TO THE STATEMENT OF
ACTIVITIES 15
NOTES TO FINANCIAL STATEMENTS 16
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES – BUDGET AND ACTUAL – GENERAL FUND 23
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 24
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 25
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(1)
Independent Auditor’s Report
Members of the Board of Commissioners
Meridian Development Corporation
Meridian, Idaho
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and each major fund of
Meridian Development Corporation (MDC), a discretely presented component unit of the City of Meridian, Idaho,
as of and for the year ended September 30, 2023, and the related notes to the financial statements which
collectively comprise MDC’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 financial
position of the governmental activities and each major fund of MDC, as of September 30, 2023, and the
respective changes in financial position for the year then ended in conformity 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
(GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by
the Comptroller General of the United States (Government Auditing Standards). 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 MDC 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; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about MDC’s ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee
that an audit conducted in accordance with GAAS 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
(2)
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 GAAS 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 MDC’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 MDC’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 and budgetary comparison information as listed in the table of contents 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. 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 December 4, 2023 on
our consideration of MDC’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 MDC’s 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 MDC’s internal control over financial reporting and compliance.
Boise, Idaho
December 4, 2023
MERIDIAN DEVELOPMENT CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2023
(3)
This section of the Meridian Development Corporation’s (MDC or Corporation) annual financial report
presents management’s discussion and analysis of MDC's financial performance during the year ended
September 30, 2023. Please use this information in conjunction with the information furnished in MDC's
financial statements.
Financial Highlights
Fiscal year 2023 is the twentieth full year that MDC has collected property tax. Property tax is
MDC’s principal source of revenue. Property tax collections increased by $302,478 or 9.92%
from fiscal year 2022 to fiscal year 2023.
The total assets of MDC exceeded its liabilities and deferred inflows at September 30, 2023 by
$6,487,584. Of the total net position, $672,384 is net investment in capital assets. The
remaining net position of $5,815,200 is restricted to meet the Corporation’s on-going
obligations. This is an increase of $2,718,314 from a net position of $3,769,270 at September
30, 2022.
Overview of the Financial Statements
This annual report consists of five parts – management discussion and analysis, the government-wide
financial statements, fund financial statements, notes to the financial statements, and required
supplementary information.
Government - Wide Financial Statements
These statements report information about all of the operations of MDC using accounting methods
similar to those used by private sector companies. These statements are prepared using the flow of
economic resources measurement focus and accrual basis of accounting. The current year’s revenues
and expenses are recorded as transactions occur rather than when cash is received or paid.
The government-wide financial statements are divided into two categories:
Statement of Net Position – Reports all of MDC’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 entity is improving or deteriorating.
Statement of Activities – Reports all of the Corporation’s revenues and expenses for the year by
function. MDC currently has two functions, the community development and public education and
marketing functions.
Fund Financial Statements
The Fund financial statements provide information about an entity’s major funds. Funds may be
required by law or may be established by the MDC Board of Commissioners.
Governmental Funds: Governmental fund financial statements focus on short-term inflows and outflows
of spendable resources, an accounting approach known as the flow of current financial resources
measurement focus and the modified accrual basis of accounting. Information provided by these
statements provides a short-term view of what resources will be available to meet needs.
MERIDIAN DEVELOPMENT CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2023
(4)
Fund Financial Statements (continued)
MDC has five governmental funds:
General Fund: The general fund is the general operating fund of MDC. Income is derived primarily from
property tax.
10 Mile District: The 10 Mile District fund was established as of July 1, 2016. Income is derived
primarily from property tax.
Union Block District: The Union Block District fund was established as of June 22, 2020. Income is
derived primarily from property tax.
Northern Gateway District: The Northern Gateway District fund was established as of December 14,
2021. Income is derived primarily from property tax.
Linder District: The Linder District fund was established as of December 14, 2021. Income is derived
primarily from property tax.
Notes to the Financial Statements
The notes provide additional information that is necessary to fully understand the data presented in the
government-wide and fund financial statements.
Required Supplementary Information
This section has information that further explains and supports the information in the financial
statements by including a comparison of the Corporation’s budget data for the year.
MERIDIAN DEVELOPMENT CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2023
(5)
FINANCIAL ANALYSIS OF MERIDIAN DEVELOPMENT CORPORATION AS A WHOLE
Net Position
Net Position measures the difference between what the entity owns (assets) versus what the entity
owes (liabilities) and future revenues (deferred inflows). At September 30, 2023, MDC’s combined
assets exceeded liabilities and deferred inflows by $6,487,584.
The following statement is condensed from the statement of net position.
2023 2022
ASSETS
CURRENT ASSETS 12,692,574$ 10,091,078$
CAPITAL ASSETS 672,384 672,384
Total Assets 13,364,958 10,763,462
LIABILITIES
CURRENT LIABILITIES 26,161 23,020
NONCURRENT LIABILITIES 2,438,100 3,640,382
Total Liabilities 2,464,261 3,663,402
DEFERRED INFLOWS 4,413,113 3,330,790
Total Liabilities and Deferred Inflows 6,877,374 6,994,192
NET POSITION
INVESTMENT IN CAPITAL ASSETS 672,384 672,384
RESTRICTED 5,815,200 3,096,886
6,487,584$ 3,769,270$
MERIDIAN DEVELOPMENT CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2023
(6)
Changes in Net Position
During the year, MDC’s financial position increased by $2,718,314. This compares with the prior year
increase in financial position of $1,234,308.
The following condensed financial information was derived from the government-wide statement of
activities and shows how MDC’s net position changed during the year.
2023 2022
GENERAL REVENUES
Property Tax 3,351,496$ 3,049,018$
Interest 100,551 8,946
Other Revenues 9,365 6,411
Total General Revenues 3,461,412 3,064,375
PROGRAM REVENUES - -
Total Revenues 3,461,412 3,064,375
EXPENSES
Community Development 738,284 1,824,856
Public Education and Marketing 4,814 4,762
Interest on Long-Term Debt - 449
Total Expenses 743,098 1,830,067
CHANGE IN NET POSITION 2,718,314 1,234,308
Net Position - Beginning of Year 3,769,270 2,534,962
NET POSITION - END OF YEAR 6,487,584$ 3,769,270$
From fiscal year 2022 to fiscal year 2023, MDC's property tax revenue increased by 9.92%.
FINANCIAL ANALYSIS OF MDC'S FUNDS
Governmental Funds
Fiscal year 2023 was the twentieth full year that MDC received property tax revenue. At September 30,
2023 the funds’ balance was $8,168,769 as compared to $6,672,416 at September 30, 2022. Of the
funds’ balance, $4,473 is nonspendable, ($130,314) is unassigned, and $8,294,610 is restricted. The
funds’ balance increased in fiscal year 2023 due to tax revenues being higher than in fiscal year 2022
and due to the tax revenues exceeding normal operating expenditures.
MERIDIAN DEVELOPMENT CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2023
(7)
Budgetary Highlights
There were no budgetary amendments or capital outlay expenditures for the year. Operating expenses
were under budget.
MDC does not have any employees and relies on professional service contracts for the administrator,
legal, and marketing, etc. 11% of actual operating expenditures were for professional service
contractors. MDC spent 22% of its operating budget.
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
$1,100,000
$1,200,000
$1,300,000
$1,400,000
$1,500,000
$1,600,000
$1,700,000
$1,800,000
$1,900,000
MDC Actual Expenditures ‐FY23 Compared to FY22
FY22
FY23
MERIDIAN DEVELOPMENT CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2023
(8)
Budgetary Highlights (continued)
Property tax revenue was budgeted to be $3,911,100; actual tax collected was $3,331,817.
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
FY23 Actual FY23 Budget FY22 Actual FY22 Budget FY21 Actual FY20 Actual
MDC Tax Increment Revenue
MERIDIAN DEVELOPMENT CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2023
(9)
Capital Asset Administration
Capital Assets
At the end of fiscal year 2022, MDC’s total capital assets were $672,384. At the end of fiscal year 2023,
capital assets had not changed and were $672,384, including $672,384 in land, $140,547 in intangibles
and $140,547 in accumulated depreciation. Intangible assets include the Downtown Master Plan and
the MDC website. See Note 3 for further detail of the capital assets.
Fiscal Year 2024 Budgetary Considerations
For fiscal year 2024, MDC will continue downtown rehabilitation efforts by purchasing properties for
redevelopment and parking and by participating in a variety of community downtown projects and
programs. MDC will partner with the City of Meridian for downtown decorations, help fund public art and
the split corridor lighting, and assist businesses with streetscape and façade improvements.
Property tax revenue is expected to be higher than the amount collected in fiscal year 2023.
Requests for Information
This report is designed to provide a general overview of Meridian Development Corporation’s finances
for our citizens and customers. If you have questions about this report or need additional financial
information contact the Finance Office: 101 South Capitol Boulevard, Suite 1700, Boise, ID 83702.
Phone 208-387-6400.
MERIDIAN DEVELOPMENT CORPORATION
STATEMENT OF NET POSITION
SEPTEMBER 30, 2023
See accompanying Notes to Financial Statements.
(10)
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents 8,181,092$
Other Receivables 9,365
Property Tax Receivable 4,413,113
Delinquent Property Taxes Receivable 84,531
Prepaid Expenses 4,473
Total Current Assets 12,692,574
NONCURRENT ASSETS
Capital Assets, Not Subject to Depreciation
and Amortization 672,384
Capital Assets, Subject to Depreciation
and Amortization 140,547
Less: Accumulated Depreciation and Amortization (140,547)
Total Noncurrent Assets 672,384
Total Assets 13,364,958
LIABILITIES
CURRENT LIABILITIES
Accounts Payable 26,161
NONCURRENT LIABILITIES
Due to Developers 2,438,100
Total Liabilities 2,464,261
DEFERRED INFLOWS OF RESOURCES
Property Taxes 4,413,113
NET POSITION
Investment in Capital Assets 672,384
Restricted 5,815,200
Total Net Position 6,487,584$
MERIDIAN DEVELOPMENT CORPORATION
STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2023
See accompanying Notes to Financial Statements.
(11)
GENERAL REVENUES
General Property Tax Revenue 3,351,496$
Interest Earnings 100,551
Other Revenue 9,365
Total General Revenues 3,461,412
EXPENSES
Community Development 738,284
Public Education and Marketing 4,814
Total Expenditures 743,098
CHANGE IN NET POSITION 2,718,314
Net Position - Beginning of Year 3,769,270
NET POSITION - END OF YEAR 6,487,584$
MERIDIAN DEVELOPMENT CORPORATION GOVERNMENTAL FUNDS BALANCE SHEET SEPTEMBER 30, 2023 See accompanying Notes to Financial Statements. (12) General 10 Mile Union Block Northern LinderFund District District Gateway District District TotalASSETSCash and Cash Equivalents 7,634,211$ 491,969$ 687$ 52,715$ 1,510$ 8,181,092$ Other Receivables - - 9,365 - - 9,365 Interfund Receivable (Payable) 137,650 - (128,100) - (9,550) - Property Tax Receivable 1,857,392 2,279,009 99,481 148,791 28,440 4,413,113 Deliquent Property Taxes Receivable 77,509 7,022 - - - 84,531 Prepaid Expenses 4,473 - - - - 4,473 Total Assets 9,711,235$ 2,778,000$ (18,567)$ 201,506$ 20,400$ 12,692,574$ LIABILITIESAccounts Payable 18,292$ 1,656$ 3,729$ 1,987$ 497$ 26,161$ DEFERRED INFLOWS OF RESOURCESProperty Taxes 1,934,901 2,286,031 99,481 148,791 28,440 4,497,644 FUND BALANCE FUND BALANCENonspendable 4,473 - - - - 4,473 Restricted 7,753,569 490,313 - 50,728 - 8,294,610 Unassigned - - (121,777) - (8,537) (130,314) Total Fund Balance 7,758,042 490,313 (121,777) 50,728 (8,537) 8,168,769 Total Liabilities, Deferred Inflows ofResources, and Fund Balances9,711,235$ 2,778,000$ (18,567)$ 201,506$ 20,400$ 12,692,574$
MERIDIAN DEVELOPMENT CORPORATION STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2023 See accompanying Notes to Financial Statements. (13) General 10 Mile Union Block Northern LinderFund District District Gateway District District TotalREVENUESGeneral Property Tax Revenue1,709,957$ 1,505,503$ 6,494$ 95,594$ 14,269$ 3,331,817$ Interest Earnings 97,480 2,923 -148 -100,551 Other Revenue- - 9,365 - -9,365 Total General Revenues1,807,437 1,508,426 15,859 95,742 14,269 3,441,733 EXPENDITURESOffice and Operating Expense365,157 1,342,587 25,610 - -1,733,354 Professional Services132,984 18,687 32,630 18,421 4,490 207,212 Public Education and Marketing4,814 - - - -4,814 Total Expenditures502,955 1,361,274 58,240 18,421 4,490 1,945,380 NET CHANGE IN FUND BALANCES1,304,482 147,152 (42,381) 77,321 9,779 1,496,353 Fund Balance - Beginning of Year6,453,560 343,161 (79,396) (26,593) (18,316) 6,672,416 FUND BALANCE - END OF YEAR7,758,042$ 490,313$ (121,777)$ 50,728$ (8,537)$ 8,168,769$
MERIDIAN DEVELOPMENT CORPORATION
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT
OF NET POSITION
SEPTEMBER 30, 2023
See accompanying Notes to Financial Statements.
(14)
TOTAL FUND BALANCES FOR GOVERNMENTAL FUNDS 8,168,769$
Total net position reported for governmental activities in the statement of net position is
different because:
Land 672,384
Equipment and Intangibles, Net of $140,547
Accumulated Depreciation -
Due to Developers (2,438,100)
84,531
Total Net Position as Shown on the Statement of Net Position 6,487,584$
Long-term liabilities that pertain to governmental funds are not due and payable in the
current period and, therefore, are not reported as fund liabilities. All liabilities are reported in
the statement of net position.
Some of the property taxes receivable are not available to pay for current period
expenditures and, therefore, are not reported in the funds.
Capital assets used in governmental funds are not financial resources and, therefore, are
not reported in the funds. Those assets consist of:
MERIDIAN DEVELOPMENT CORPORATION
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES TO THE STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2023
See accompanying Notes to Financial Statements.
(15)
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 1,496,353$
In the statement of activities, long-term liabilities representing reimbursements against
future tax receipts are recorded as expenses. 1,202,282
The change in property taxes receivable to be collected subsequent to year-end, but not
available soon enough to pay for the current period’s expenditures are not recognized.19,679
Change in Net Position, as Reflected on the Statement of Activities 2,718,314$
Amounts reported for governmental activities in the statement of activities are different
because:
MERIDIAN DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2023
(16)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Meridian Development Corporation (MDC) is a separate and distinct legal entity of the
City of Meridian, Idaho (City) created by state statute. The Directors for MDC are appointed
by the Mayor and approved by the City Council. MDC provides urban renewal services for
the citizens of the City.
The financial statements of MDC have been prepared in conformity with accounting
principles generally accepted in the United States of America (GAAP) as applied to
government units. The Governmental Accounting Standards Board (GASB) is the accepted
standard-setting body for establishing governmental accounting and financial reporting
principles. The more significant of the government's accounting policies are described
below.
The accounting and reporting policies of MDC relating to the funds included in the
accompanying basic financial statements conform to GAAP applicable to state and local
governments.
Financial Reporting Entity
MDC is included as a component unit in the City’s financial statements. These statements
present only the funds of MDC and are not intended to present the financial position and
results of operations of the City in conformity with GAAP.
Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the
statement of activities) report information on all of the nonfiduciary activities of the primary
government. The statement of activities demonstrates the degree to which the direct
expenses of a given function or segment are offset by program revenues. Direct expenses
are those that are clearly identifiable with a specific function or segment. Program revenues
include: 1) charges to customers or applicants who purchase, use, or directly benefit from
goods, services, or privileges provided by a given function or segment and 2) grants and
contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program
revenues are reported instead as general revenues.
MERIDIAN DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2023
(17)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Revenues are recorded when
earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
The governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Revenues are
recognized as soon as they are both measurable and available. Revenues are considered to
be available when they are collectible within the current period or soon enough thereafter to
pay liabilities of the current period. For this purpose, the government considers revenues to
be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to claims
and judgments, are recorded only when payment is due. MDC reports the following major
governmental funds:
General Fund - MDC is a general fund. General funds are used for all financial resources
except those required to be accounted for in another fund.
10 Mile District Fund - The 10 Mile District fund was established as of July 1, 2016.
Union Block District Fund - The Union Block District fund was established as of June 22,
2020.
Northern Gateway District Fund - The Northern Gateway District fund was established as of
December 14, 2021.
Linder District Fund - The Linder District fund was established as of December 14, 2021.
Capital Assets
Capital assets are reported in the government-wide financial statements. Capital assets are
defined by the government as assets with an initial, individual cost of more than $500 and
an estimated useful life in excess of one year. All material fixed assets are valued at cost.
Donated capital assets are valued at their acquisition value on the date donated. Capital
assets are depreciated on the straight-line basis with the half-year convention over useful
lives of 3 to 30 years.
MERIDIAN DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2023
(18)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Property Taxes Receivable
Property taxes are recognized as revenue when the amount of taxes levied is measurable,
and proceeds are available to finance current period expenditures.
Available tax proceeds include property tax receivables expected to be collected within sixty
days after year-end. Property taxes attach as liens on properties on January 1 and are
levied in September of each year. Tax notices are sent to taxpayers during November, with
tax payments scheduled to be collected on or before December 20. Taxpayers may pay all
or one half of their tax liability on or before December 20, and if one half of the amount is
paid, they may pay the remaining balance by the following June 20.
Deferred Inflow of Resources and Advanced Revenue
Unavailable revenue is considered a deferred inflow of resources in accordance with the
modified accrual basis of accounting for the fund financial statements. Deferred inflows of
resources are measurable but do not represent available expendable resources for the fund
financial statements for the fiscal year ended September 30, 2023. Since MDC is on a
September 30 fiscal year end, property taxes levied during September for the succeeding
year’s collection are recorded as unavailable revenues at the MDC’s year-end and
recognized as revenue in the following fiscal year. Ada County bills and collects taxes for
MDC.
Risk Management
As a component unit of the City, MDC is exposed to various risks of loss related to theft of,
damage to, or destruction of assets. The City, and MDC as a component unit, participates in
a public entity risk pool, Idaho Counties Risk Management Pool (ICRMP), for property and
liability insurance. The City's and MDC’s exposure to loss from its participation in ICRMP is
limited to the extent of their deductible only.
Fund Balances
The governmental fund financial statements present fund balances based on classifications
that comprise a hierarchy that is based primarily on the extent to which the MDC is bound to
honor constraints on the specific purposes for which amounts in the respective
governmental funds can be spent. The classifications used in the governmental fund
financial statements are as follows:
Nonspendable – Includes amounts that cannot be spent because they are either not
spendable in form or are legally or contractually required to be maintained intact. All
amounts reported as nonspendable at September 30, 2023 by MDC are nonspendable
in form. This includes prepaid expenses of $4,473. MDC has not reported any amounts
that are legally or contractually required to be maintained intact.
Restricted – This fund balance is constrained for a specific purpose and legally restricted
by external parties, such as state or federal agencies. MDC had $8,294,610 in restricted
fund balance at September 30, 2023.
MERIDIAN DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2023
(19)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Committed – This fund balance constraint is self-imposed by the board of directors.
Formal action is required by the board of directors to commit funds and must occur prior
to year-end; however, the actual dollar amount may be determined in the subsequent
period.
Assigned – This fund balance is intended for a specific purpose and the authority to
“assign” is delegated to the administrator. Formal action is not necessary to impose,
remove, or modify an assigned fund balance.
Unassigned – This is the remaining fund balance that has no internal or external
restrictions. Unassigned amounts are available for any purpose. Although there is
generally no set spending plan, there is a need to maintain a certain funding level. The
unassigned fund balance is commonly used for emergency expenditures or reserves
needed to ensure cash flow. MDC had ($130,314) in unassigned fund balance at
September 30, 2023.
MDC has a policy regarding minimum fund balance for a stabilization arrangement to
reserve 8% of the current year budget of tax revenues in order to ensure there is sufficient
cash flow to maintain services between property tax receipts (the Resolution).
Pooled Cash
MDC follows the practice of pooling cash of all funds to maximize investment earnings.
Except when required by trust or other agreements, all cash is deposited to and disbursed
from a single bank account. Investment earnings are allocated periodically to the
participating funds based upon each fund’s average equity balance in the total cash.
NOTE 2 DEPOSITS – CUSTODIAN CREDIT RISK
Cash and Cash Equivalents
As of September 30, 2023, the account balance of the cash in bank was $8,192,851.
$7,931,092 was uninsured and uncollateralized as of September 30, 2023. Cash is held in
the custody of Washington Trust Bank in MDC’s name.
MERIDIAN DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2023
(20)
NOTE 3 CAPITAL ASSETS
Changes to capital assets are as follows:
Balance Balance
10/1/2022 Additions Deletions Transfers 9/30/2023
GOVERNMENTAL ACTIVITIES
Capital Assets, not
Depreciated Land 672,384$ -$ -$ -$ 672,384$
Total Capital Assets,
not Depreciated 672,384 - - - 672,384
CAPITAL ASSETS, DEPRECIATED
Intangibles 140,547 - - - 140,547
Total Capital Assets,
Depreciated 140,547 - - - 140,547
Less: Accumulated
Depreciation
Intangibles (140,547) - - - (140,547)
Total Accumulated (140,547) - - - (140,547)
Depreciation
Total Net Capital Assets,
Depreciated - - - - -
GOVERNMENTAL ACTIVITIES
CAPITAL ASSETS, NET 672,384$ -$ -$ -$ 672,384$
NOTE 4 RELATED PARTY TRANSACTIONS
MDC partners with the City of Meridian for various downtown improvements. During the
fiscal year, MDC reimbursed the City of Meridian $10,079 for costs related to joint projects.
MERIDIAN DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2023
(21)
NOTE 5 NET POSITION
MDC had net position consisting of two components –investment in capital assets and
restricted net position.
The investment in capital assets component of net position consists of capital assets that
are owned by MDC, net of accumulated depreciation. As of September 30, 2023, MDC had
net investment in capital assets of $672,384.
The restricted component of net position consists of assets that are restricted for use either
externally imposed by creditors, grantors, contributors, or laws and regulation of other
governments or imposed by law through constitutional provision or enabling legislation.
MDC had a restricted net position as of September 30, 2023 of $5,815,200.
NOTE 6 COMMITMENTS AND CONTINGENCIES
On February 8, 2017, amended on March 13, 2018, and amended on December 15, 2021,
MDC entered into an Owner Participation Agreement with Ten Mile Crossing, Inc., Brighton
Corporation, SCS Brighton LLC, Brighton Investments LLC, SCS Investments LLC, and
SBG Ten Mile Office No. 1, LLC (the Ten Mile Developers) to carry out the approved urban
renewal plan. This agreement contemplates that the Ten Mile Developers will develop the
property by constructing private improvements. Eligible public improvements are to be
constructed in phases and reimbursed from future tax increment revenues. As of September
30, 2023, the Ten Mile Developers have incurred life-to-date eligible expenses and
requested reimbursements totaling $5,047,471. Of this amount, $1,337,587 was paid by
MDC in fiscal year 2023 and $2,811,416 was paid by MDC in prior fiscal years. The
remaining amount of $898,468 is to be paid, contingent upon the future receipt of tax
increment.
On January 26, 2022, MDC entered into a Development Agreement with East Broadway
Investment Company, LLC (the Union Developers) to carry out the approved urban renewal
plan. This agreement contemplates that the Union Developers will develop the property by
constructing private improvements. Eligible public improvements are to be constructed in
phases and reimbursed from future tax increment revenues. As of September 30, 2023, the
Union Developers have incurred life-to-date eligible expenses and requested
reimbursements totaling $750,000. Of this amount, no amount was paid by MDC in fiscal
year 2023 or in prior fiscal years. The remaining amount of $750,000 is to be paid,
contingent upon the future receipt of tax increment.
MERIDIAN DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2023
(22)
NOTE 6 COMMITMENTS AND CONTINGENCIES (CONTINUED)
On October 10, 2018, amended on April 28, 2021, MDC entered into a Development
Agreement with Novembrewhisky Properties, LLC, Pacific West Communities, Inc., and
Pacific West Builders, Inc. (the Old City Hall Developers) to carry out the approved urban
renewal plan. This agreement contemplates that the Old City Hall Developers will develop
the property by constructing private improvements. Eligible public improvements are to be
constructed in phases and reimbursed from future tax increment revenues. As of September
30, 2023, the Old City Hall Developers have incurred life-to-date eligible expenses and
requested reimbursements totaling $678,000. Of this amount, $60,304 was paid by MDC in
fiscal year 2023 and $23,673 was paid by MDC in prior fiscal years. The remaining amount
of $594,023 is to be paid, contingent upon the future receipt of tax increment.
On January 8, 2020, amended on August 1, 2020, MDC entered into a Development
Agreement with RWP/Meridian, LLC and MKA, LLC (the Bower Street Developers) to carry
out the approved urban renewal plan. This agreement contemplates that the Bower Street
Developers will develop the property by constructing private improvements. Eligible public
improvements are to be constructed in phases and reimbursed from future tax increment
revenues. As of September 30, 2023, the Bower Street Developers have incurred life-to-
date eligible expenses and requested reimbursements totaling $224,000. Of this amount,
$28,391 was paid by MDC in fiscal year 2023. The remaining amount of $195,609 is to be
paid, contingent upon the future receipt of tax increment.
MERIDIAN DEVELOPMENT CORPORATION
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2023
See accompanying Notes to Required Supplementary Information.
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Budgeted Amounts Variance
Actual with
Original Final Amounts Final Budget
REVENUES
General Property Tax Revenue 3,911,100$ 3,911,100$ 3,331,817$ (579,283)$
Interest Earnings 10,000 10,000 100,551 90,551
Other Revenue - - 9,365 9,365
Total Revenues 3,921,100 3,921,100 3,441,733 (479,367)
EXPENDITURES
Office and Operating Expense 8,708,261 8,708,261 1,733,354 6,974,907
Professional Services, Surveys,
and Studies 248,653 248,653 207,212 41,441
Public Education and Marketing 15,000 15,000 4,814 10,186
Total Expenditures 8,971,914 8,971,914 1,945,380 7,026,534
Excess (deficiency) revenues
NET CHANGE IN FUND BALANCES (5,050,814) (5,050,814) 1,496,353 6,547,167
Fund Balance - Beginning of Year 5,209,134 5,209,134 6,672,416 1,463,282
FUND BALANCE - END OF YEAR 158,320$ 158,320$ 8,168,769$ 8,010,449$
MERIDIAN DEVELOPMENT CORPORATION
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2023
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NOTE 1 BUDGETS AND BUDGETARY ACCOUNTING
MDC follows these procedures in establishing the budgetary data reflected in the financial
statements:
Prior to September 1, the members of the Board of Directors and the contract
administrator prepare a proposed operating budget for the fiscal year commencing on
October 1. The operating budget includes proposed expenditures and the means of
financing them.
Public hearings are conducted at City Hall to obtain taxpayer comments.
Prior to October 1, the budget is legally enacted through passage of an ordinance.
Budgets are adopted on a basis consistent with GAAP for the funds. All annual
appropriations lapse at fiscal year-end. Revisions that alter the total expenditure
appropriation of any fund must be approved by the board of commissioners. State law does
not allow fund expenditures to exceed fund appropriations.
Formal budgetary integration is employed as a management control device during the year.
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(25)
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
Members of the Board of Commissioners
Meridian Development Corporation
Meridian, Idaho
We have audited, 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, the financial statements of the governmental
activities, and each major fund of Meridian Development Corporation (MDC), a discretely presented
component unit of the City of Meridian, Idaho as of and for the year ended September 30, 2023, and the
related notes to the financial statements, which collectively comprise Meridian Development
Corporation’s basic financial statements, and have issued our report thereon dated December 4, 2023.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered MDC's internal control
over financial reporting (internal control) as a basis for designing 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 MDC’s internal control. Accordingly, we do not
express an opinion on the effectiveness of MDC’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 over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over
financial reporting 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 or significant deficiencies may exist that have not been
identified.
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether MDC'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
financial statements. 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.
Boise, Idaho
December 4, 2023
FY2024 MDC BUDGET AMENDMENT (OCTOBER 01, 2023 - SEPTEMBER 30, 2024)
FY2024
Amended
Budget
Operating Revenue
Property Tax Revenue - Downtown District 1,884,592
Funding Carryover From FY23 - Downtown
District 6,573,006
Property Tax Revenue - Ten Mile District 2,307,637
Funding Carryover From FY23 - Ten Mile District 433,199
Property Tax Revenue - Union District without
ACHD TIF 87,508
Property Tax Revenue - Union District ACHD TIF
Only 13,076
Funding Carryover From FY23 - Union District
without ACHD TIF 3,463
Funding Carryover From FY23 - Union District
ACHD TIF 844
Property Tax Revenue - Northern Gateway
without ACHD TIF 131,939
Property Tax Revenue - Northern Gateway ACHD
TIF Only 19,715
Funding Carryover From FY23 - Northern
Gateway District without ACHD TIF 35,221
Funding Carryover From FY23 - Northern
Gateway ACHD TIF 12,369
Property Tax Revenue - Linder District without
ACHD TIF 25,028
Property Tax Revenue - Linder District ACHD TIF
Only 3,740
Funding Carryover From FY23 - Linder District
without ACHD TIF 8,041
Funding Carryover From FY23 - Linder District
ACHD TIF 1,854
Interest Earnings 80,000
TOTAL REVENUES and AVAILABLE CASH 11,621,232$
Contractual Obligations:
Professional Services
Administrator Services - Downtown District 75,772
Administrator Services - Ten Mile District 24,442
Administrator Services - Union District 2,444
Administrator Services - Northern Gateway
District 18,332
Administrator Services - Linder District 1,222
Public Relations/Marketing - Downtown District 7,500
Public Relations/Marketing - Ten Mile District 7,500
Legal Services - Downtown District 44,701
Legal Services - Ten Mile District 14,420
Legal Services - Union District 1,442
Legal Services - Northern Gateway District 10,815
Legal Services - Linder District 721
Legislative Services - Downtown District 5,000
Legislative Services - Ten Mile District 5,000
Audit Services - Downtown District 8,000
Audit Services - Ten Mile District 8,000
Accounting Services - Downtown District 18,600
Accounting Services - Ten Mile District 6,000
Accounting Services - Union District 600
Accounting Services - Northern Gateway District 4,500
Accounting Services - Linder District 300
265,311
Operational Expenses
ICRMP-Insurance Premium/Claims 3,186
Partnerships - Valley Regional Transit 6,916
Partnerships - City of Meridian, Concerts on
Broadway 10,000
Partnerships - City of Meridian, Bus Shelter
Wraps - Downtown District 4,000
Partnerships - City of Meridian, Bus Shelter
Wraps - Ten Mile District 4,000
FY2024 MDC BUDGET AMENDMENT (OCTOBER 01, 2023 - SEPTEMBER 30, 2024)
FY2024
Amended
Budget
Irrigation Taxes - COMPASS/VRT Property 300
Legal Notices / Publications 2,000
Grounds Maintenance - Compass/VRT Property 5,000
35,402
ONGOING EXPENSES:
Accounting Software Maintenance/License 3,500
Parking Lot Maintenance - COMPASS/VRT &
Masons Parking Lot 5,000
General Electronics Expense -
Website/Zoom/Email Storage Fees 2,500
General Office Expenses 1,000
Meeting Expenses 500
Boise Chamber Leadership Conference 3,200
Postage & Mailings 200
Bank Fees 500
Mason Parking Lot - Special Projects 5,000
21,400
Total Contractual Obligations 322,113
Revenues less Contractual Obligations 11,299,119
DISCRETIONARY EXPENSES:
Operational Expenses
Marketing/Promotional/Publications 1,000
Training and Meals 5,000
Dues and Subscriptions 1,400
SUBTOTAL OPERATIONAL EXPENSES 7,400
Project Expenditures
Owner Participation Reimbursement to Brighton
Corporation - Ten Mile District 2,076,873
Ten Mile Revenues - MDC's 10%594,601
Development Agreement Reimbursement to
Pacific Companies for Old Town Lofts -
Downtown District 600,000
Owner Participation Reimbursement to Galena
Opportunity Fund for Union 93 - Union District 5,000
Owner Participation Reimbursement to MKA, LLC
(Keller Associates) - Downtown District 40,000
Special Projects - Downtown District 4,219,823
Special Projects - Union District 76,485
Special Projects - Union District ACHD TIF 13,920
Special Projects - Northern Gateway District 108,413
Special Projects - Northern Gateway ACHD TIF 32,084
Special Projects - Linder District 30,826
Special Projects - Linder District ACHD TIF 5,594
Destination Downtown - Downtown District 142,233
Destination Downtown - Northern Gateway
District 25,100
Nine-Mile Floodplain - Downtown District 3,000,000
Façade Improvement Program - Downtown
District 150,000
Façade Improvement Program - Union District 10,000
Meridian Chamber Sponsorship - Oktoberfest
2024 10,000
Property Acquisition - Downtown District
SUBTOTAL CAPITAL EXPENDITURES 11,140,952
8% Reserve Based on Estimated Revenues
(Downtown District Only)150,767 Based upon 8% of $1,884,592 estimated revenues
1,884,592
TOTAL EXPENDITURES 11,621,232 0.08
150,767
NET - -