HomeMy WebLinkAbout2025 Annual Report and Appendix104 East Fairview Avenue #239
Meridian, Idaho, 83642
(208) 830-7786
meridiandevelopmentcorp@gmail.com
2025 ANNUAL
REPORT
CONTENTS
Letter from the Chairman
Leadership
Board of Commissioners
Northern Gateway Urban Renewal District
Linder District Urban Renewal District
Looking Ahead to 2026
Appendix A: Financial AuditDowntown Urban Renewal District
Ten Mile Urban Renewal District
Union District Urban Renewal District
4
6
7
22
26
30
328
14
18
In Meridian, our five urban renewal districts give us the tools to make
targeted investments that improve residents’ well-being and quality of life.
Urban renewal has revitalized our community’s core by supporting building
façade improvements, updating public infrastructure, installing public art and
making downtown more walkable. It has been instrumental in transforming
underutilized land at Ten Mile into a thriving workforce and entertainment
center. And it is supporting major transportation improvements at Linder
Road.
This past year, the Meridian Development Corporation (MDC) helped advance
several important efforts. In downtown, MDC continued wrapping up
remaining projects as the original Downtown District moves toward sunset.
This included working with the City of Meridian to implement the updated
Destination: Downtown Master Plan to advance an overlay district that will
help downtown grow in a way that retains its character. MDC also continued
its work with the City on the Nine Mile floodplain project, which will help
reduce flood risk and improve redevelopment potential, while creating value
for existing property owners.
In the Union District, there was renewed momentum around the
long-stalled Union 93 project. The parcels were sold at auction to AHLQUIST
and Pacific Companies, developers with long histories and successful track
records in Meridian. As the companies analyze the partially constructed
structures on the site, they are taking the time to revision the project and
determine what development will best serve the needs of our community.
We are all anxious to see what they deliver.
As we look ahead, we are excited about the prospect of collaborating with
the City to create new project-specific districts in the downtown area so
Meridian can continue investing in the vibrancy and livability of our city
center.
At MDC, our work is about solving problems, making strategic investments,
and helping Meridian grow in thoughtful ways. Thank you for your interest in
our work and for your support of Meridian’s bright future.
LETTER FROM
THE CHAIRMAN
Urban Renewal
Makes Our
Communities
Stronger.
D avid Winder
David Winder
Chairman, Meridian Development Corporation
4 2025 ANNUAL REPORT 2025 ANNUAL REPORT 5
LEADERSHIP
TEAM
BOARD OF
COMMISSIONERS
Dan Basalone
Robert Simison
Kit Fitzgerald
Doug Taylor
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 2025 ANNUAL REPORT 2025 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.
2025 ANNUAL REPORT 9
2025 Highlights
DESTINATION: DOWNTOWN
After adopting the updated Destination: Downtown Master Plan, MDC
commissioners spent 2025 working alongside the City of Meridian staff
and councilmembers to review the different topics within the plan and to
gain feedback on each area. These work-sessions will continue into 2026.
Placemaking, parking and the creation of an overlay zone for Downtown
have been some of the topics discussed. This is a crucial step in the plan’s
implementation process.
Destination: Downtown will help chart the course of the Downtown, Union
and Northern Gateway Urban Renewal Districts for the next several decades
NINE MILE FLOODPLAIN
After 15 years of hard work and a $180,000 grant from the Idaho Office of
Emergency Management through FEMA, the City of Meridian and MDC
obtained almost all the necessary construction approvals and permits
to remove 78 acres and 41 buildings from the Nine Mile Floodplain in
downtown. MDC hopes to secure the last few permits in 2026 and start
construction.
To remove properties between Franklin Road and the Union Pacific Railroad
line that fall within the 100-year-flood plain boundary, culverts will need to
be installed and improvements made to channel and drainage infrastructure
along Nine Mile Creek.
1110 2025 ANNUAL REPORT 2025 ANNUAL REPORT
CONCERTS ON BROADWAY
MDC supported Concerts on Broadway’s 17th season in 2025. Soul Patch,
Rockabetty and Billy Blues Band entertained community members at
the Meridian City Hall Plaza. More than 1,000 people came to downtown
throughout the summer to enjoy the three Saturday night performances.
Soul Patch, Rockabetty and Billy Blues Band entertained
community members at the Meridian City Hall Plaza
More than 1,000 people came.
OKTOBERFEST
MDC was proud to sponsor the Meridian Chamber of Commerce’s fourth
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 15,000 people into downtown.
This annual event has become a community favorite
and helps give local business owners a boost by
increasing foot traffic throughout the day-long event.
12 2025 ANNUAL REPORT 2025 ANNUAL REPORT 13
2016
2036
301
Created
Sunsets
Total Acres
TEN MILE URBAN
RENEWAL DISTRICT
The Ten Mile Urban Renewal District was created to take an
underdeveloped section of the city and rapidly transform it into an
employment and economic hub. The District is home to more than
900 residents and 1,100 employees.
2025 ANNUAL REPORT 15
2025
Highlights
Urban renewal has played
a huge part in Ten Mile’s
transformation from farmland
to the City’s economic center
and continues to be a hub of
development activity.
Ten Mile continues to be a hub of development activity. Over the
past year, Chick-fil-A and Churro Bros opened new locations within
the District. CapEd Federal Credit Union’s newest branch is under
construction, as well as 95,000 square feet of new office space and an
optometrist’s clinic. Swig, a Utah-based soda shop, and The Habit have
also secured permits, so they can join the growing food scene at Ten
Mile.
Urban renewal has played a huge part in Ten Mile’s transformation from
farmland to the City’s economic center. Tax increment financing allowed
Brighton Corporation to make Ten Mile an employment, entertainment
and residential destination for the community in less than a decade.
172025 ANNUAL REPORT16 2025 ANNUAL REPORT
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.
2025 ANNUAL REPORT 19
Exciting things are about to start at the site of the
old Union 93 project.
AHLQUIST and Pacific Companies are partnering to get the Union 93 project
back on track and create something truly special in downtown. After several
years of stalled development, they secured the property in October when
it went up for auction. The property is in a 6-month cure period, giving the
original developer an opportunity to pay all their outstanding debts related
to the project until April 2026.
Before construction starts again, AHLQUIST and Pacific Companies must
complete a structural assessment of the partially developed buildings on
the site and determine how they will be incorporated into the future project.
This analysis won’t start until the six-month cure period runs out. Although
it is unlikely, the original developer still has the opportunity to pay off their
outstanding debts by April 2026 to regain control of the project.
While they wait, AHLQUIST and Pacific Companies are evaluating the
original vision for the property to determine if it still makes sense or if a new
vision would better serve the community. Once a final direction has been
decided, AHLQUIST and Pacific Companies will work with the City to obtain
all the necessary permits and approvals to move forward.
Union 93
20 2025 ANNUAL REPORT 2025 ANNUAL REPORT 21
2021
2041
126
Created
Sunsets
Total Acres
NORTHERN GATEWAY
URBAN RENEWAL
DISTRICT
Infrastructure improvements, small business support and creating
sustainable growth are the focus of MDC’s work in the Northern
Gateway Urban Renewal District.
2025 ANNUAL REPORT 23
2025
Highlights
Promenade Cottages will bring 30 new residential
units into downtown at the southeast corner of
Fairview Avenue and 3rd Street.
MDC entered into its first owner participation agreement in the Northern
Gateway Urban Renewal District in October. The agreement will allow
developers of Promenade Cottages to be reimbursed for necessary public
infrastructure improvements.
Promenade Cottages will initially bring 30 new residential units into
downtown at the southeast corner of Fairview Avenue and 3rd Street, with
phase two bringing 90 apartment units. The initial housing units will include
eight standalone homes and 22 duplexes. To increase pedestrian activity
in downtown, front doors will face 3rd Street and garages will be accessed
through a newly constructed alley.
The agreement will allow developers to be reimbursed for making required
upgrades to sidewalks, public utilities, road infrastructure and streetlights.
These improvements will enhance safety, benefitting the entire community.
24 2025 ANNUAL REPORT 2025 ANNUAL REPORT 25
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.
2025 ANNUAL REPORT 27
2025
Highlights
The City of Meridian, Ada County
Highway District (ACHD) and Idaho
Transportation Department are
on track to get drivers across the
Linder Road Overpass by the end
of 2027.
In 2025, crews completed
the necessary intersection
improvements at Overland Road
and Linder Road. ACHD also
acquired the necessary properties
for the overpass to move forward.
This will allow construction to
begin on the overpass in the
summer of 2026.
In addition to building the Linder
Road Overpass, construction crews
will widen Linder Road north
of the freeway and improve the
intersection at Franklin Road and
Waltman Street. Combined these
projects are estimated to total $27
million.
28 2025 ANNUAL REPORT 2025 ANNUAL REPORT 29
APRIL
SUMMER
DECEMBER
Cure period ends for
Union 93.
Construction begins
on Linder Road
Overpass.
Work to remove
homes and businesses
from Nine Mile
Floodplain begins.
Original Downtown
Urban Renewal District
will sunset.
A LOOK AT WHAT’S
TO COME IN 2026
30 2025 ANNUAL REPORT 2025 ANNUAL REPORT 31
Appendix A: FY2024 Audit
and FY2025 Budget
32 2025 ANNUAL REPORT 2025 ANNUAL REPORT 33
MERIDIAN DEVELOPMENT CORPORATION
FINANCIAL STATEMENTS AND
REQUIRED SUPPLEMENTARY INFORMATION
YEAR ENDED SEPTEMBER 30, 2024
MERIDIAN DEVELOPMENT CORPORATION
TABLE OF CONTENTS
YEAR ENDED SEPTEMBER 30, 2024
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
(1)
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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, 2024, 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, 2024, 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, 2024, 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, 2024
MERIDIAN DEVELOPMENT CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
(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, 2024. Please use this information in conjunction with the information furnished in MDC's
financial statements.
Financial Highlights
Fiscal year 2024 is the twenty-first full year that MDC has collected property tax. Property tax is
MDC’s principal source of revenue. Property tax collections increased by $1,329,177 or 39.66%
from fiscal year 2023 to fiscal year 2024.
The total assets of MDC exceeded its liabilities and deferred inflows at September 30, 2024 by
$9,491,356. Of the total net position, $672,384 is net investment in capital assets. The
remaining net position of $8,818,972 is restricted to meet the Corporation’s on-going
obligations. This is an increase of $3,003,772 from a net position of $6,487,584 at September
30, 2023.
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, 2024
(4)
Fund Financial Statements (continued)
MDC has five governmental funds:
General Fund: The general fund is the general operating fund of MDC and primarily relates to the
Downtown District which was established as of December 3, 2002. 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, 2024
(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, 2024, MDC’s combined
assets exceeded liabilities and deferred inflows by $9,491,356.
The following statement is condensed from the statement of net position.
2024 2023
ASSETS
CURRENT ASSETS 14,796,691$ 12,692,574$
CAPITAL ASSETS 672,384 672,384
Total Assets 15,469,075 13,364,958
LIABILITIES
CURRENT LIABILITIES 49,875 26,161
NONCURRENT LIABILITIES 986,044 2,438,100
Total Liabilities 1,035,919 2,464,261
DEFERRED INFLOWS 4,941,800 4,413,113
Total Liabilities and Deferred Inflows 5,977,719 6,877,374
NET POSITION
INVESTMENT IN CAPITAL ASSETS 672,384 672,384
RESTRICTED 8,818,972 5,815,200
9,491,356$ 6,487,584$
MERIDIAN DEVELOPMENT CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
(6)
Changes in Net Position
During the year, MDC’s financial position increased by $3,003,772. This compares with the prior year
increase in financial position of $2,718,314.
The following condensed financial information was derived from the government-wide statement of
activities and shows how MDC’s net position changed during the year.
2024 2022
GENERAL REVENUES
Property Tax 4,680,673$ 3,351,496$
Interest 118,460 100,551
Other Revenues 12,598 9,365
Total General Revenues 4,811,731 3,461,412
PROGRAM REVENUES - -
Total Revenues 4,811,731 3,461,412
EXPENSES
Community Development 1,798,053 738,284
Public Education and Marketing 9,906 4,814
Interest on Long-Term Debt - -
Total Expenses 1,807,959 743,098
CHANGE IN NET POSITION 3,003,772 2,718,314
Net Position - Beginning of Year 6,487,584 3,769,270
NET POSITION - END OF YEAR 9,491,356$ 6,487,584$
From fiscal year 2023 to fiscal year 2024, MDC's property tax revenue increased by 39.66%.
FINANCIAL ANALYSIS OF MDC'S FUNDS
Governmental Funds
Fiscal year 2024 was the twenty-first full year that MDC received property tax revenue. At September
30, 2024 the funds’ balance was $9,592,327 as compared to $8,168,769 at September 30, 2023. Of the
funds’ balance, $2,535 is nonspendable, ($115,951) is unassigned, and $9,705,743 is restricted. The
funds’ balance increased in fiscal year 2024 due to tax revenues being higher than in fiscal year 2023
and due to the tax revenues exceeding normal operating expenditures.
MERIDIAN DEVELOPMENT CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
(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. 7% of actual operating expenditures were for professional service
contractors. MDC spent 28% of its operating budget.
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
MDC Actual Expenditures ‐FY24 Compared to FY23
FY23
FY24
MERIDIAN DEVELOPMENT CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
(8)
Budgetary Highlights (continued)
Property tax revenue was budgeted to be $4,473,235; actual tax collected was $4,552,515.
$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
$5,000,000
FY24 Actual FY24 Budget FY23 Actual FY23 Budget FY22 Actual FY21 Actual
MDC Tax Increment Revenue
MERIDIAN DEVELOPMENT CORPORATION
MANAGEMENT’S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2024
(9)
Capital Asset Administration
Capital Assets
At the end of fiscal year 2023, MDC’s total capital assets were $672,384. At the end of fiscal year 2024,
capital assets had not changed and were $672,384, including $672,384 in land, $140,547 in intangibles
and $140,547 in accumulated depreciation. Intangible assets include the Downtown Master Plan and
the MDC website. See Note 3 for further detail of the capital assets.
Fiscal Year 2025 Budgetary Considerations
For fiscal year 2025, MDC will continue downtown rehabilitation efforts by purchasing properties for
redevelopment and parking and by participating in a variety of community downtown projects and
programs. MDC will partner with the City of Meridian for downtown decorations, help fund public art and
the split corridor lighting, and assist businesses with streetscape and façade improvements.
Property tax revenue is expected to be higher than the amount collected in fiscal year 2024.
Requests for Information
This report is designed to provide a general overview of Meridian Development Corporation’s finances
for our citizens and customers. If you have questions about this report or need additional financial
information contact the Finance Office: 101 South Capitol Boulevard, Suite 1700, Boise, ID 83702.
Phone 208-387-6400.
MERIDIAN DEVELOPMENT CORPORATION
STATEMENT OF NET POSITION
SEPTEMBER 30, 2024
See accompanying Notes to Financial Statements.
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ASSETS
CURRENT ASSETS
Cash and Cash Equivalents 9,627,069$
Other Receivables 12,598
Property Tax Receivable 4,941,800
Delinquent Property Taxes Receivable 212,689
Prepaid Expenses 2,535
Total Current Assets 14,796,691
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 15,469,075
LIABILITIES
CURRENT LIABILITIES
Accounts Payable 49,875
NONCURRENT LIABILITIES
Due to Developers 986,044
Total Liabilities 1,035,919
DEFERRED INFLOWS OF RESOURCES
Property Taxes 4,941,800
NET POSITION
Investment in Capital Assets 672,384
Restricted 8,818,972
Total Net Position 9,491,356$
MERIDIAN DEVELOPMENT CORPORATION
STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2024
See accompanying Notes to Financial Statements.
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GENERAL REVENUES
General Property Tax Revenue 4,680,673$
Interest Earnings 118,460
Other Revenue 12,598
Total General Revenues 4,811,731
EXPENSES
Community Development 1,798,053
Public Education and Marketing 9,906
Total Expenditures 1,807,959
CHANGE IN NET POSITION 3,003,772
Net Position - Beginning of Year 6,487,584
NET POSITION - END OF YEAR 9,491,356$
MERIDIAN DEVELOPMENT CORPORATION GOVERNMENTAL FUNDS BALANCE SHEET SEPTEMBER 30, 2024 See accompanying Notes to Financial Statements. (12) General 10 Mile Union Block Northern LinderFund District District Gateway District District TotalASSETSCash and Cash Equivalents 8,697,874$ 728,350$ 1,569$ 180,771$ 18,505$ 9,627,069$ Other Receivables - - 12,598 - - 12,598 Interfund Receivable (Payable) 147,416 - (147,416) - - - Property Tax Receivable 1,901,871 2,690,463 97,737 162,623 89,106 4,941,800 Deliquent Property Taxes Receivable 76,649 23,065 111,326 1,646 3 212,689 Prepaid Expenses 2,535 - - - - 2,535 Total Assets 10,826,345$ 3,441,878$ 75,814$ 345,040$ 107,614$ 14,796,691$ LIABILITIESAccounts Payable 44,405$ 2,436$ 1,085$ 1,827$ 122$ 49,875$ DEFERRED INFLOWS OF RESOURCESProperty Taxes 1,978,520 2,713,528 209,063 164,269 89,109 5,154,489 FUND BALANCE FUND BALANCENonspendable 2,535 - - - - 2,535 Restricted 8,800,885 725,914 - 178,944 - 9,705,743 Unassigned - - (134,334) - 18,383 (115,951) Total Fund Balance 8,803,420 725,914 (134,334) 178,944 18,383 9,592,327 Total Liabilities, Deferred Inflows ofResources, and Fund Balances10,826,345$ 3,441,878$ 75,814$ 345,040$ 107,614$ 14,796,691$
MERIDIAN DEVELOPMENT CORPORATION STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2024 See accompanying Notes to Financial Statements. (13) General 10 Mile Union Block Northern LinderFund District District Gateway District District TotalREVENUESGeneral Property Tax Revenue2,000,970$ 2,363,704$ 8,501$ 150,883$ 28,457$ 4,552,515$ Interest Earnings 106,416 11,376 3 648 17 118,460 Other Revenue - - 12,598 - - 12,598 Total General Revenues 2,107,386 2,375,080 21,102 151,531 28,474 4,683,573 EXPENDITURESOffice and Operating Expense 904,402 2,105,507 27,670 - - 3,037,579 Professional Services 147,700 33,972 5,989 23,315 1,554 212,530 Public Education and Marketing 9,906 - - - - 9,906 Total Expenditures 1,062,008 2,139,479 33,659 23,315 1,554 3,260,015 NET CHANGE IN FUND BALANCES1,045,378 235,601 (12,557) 128,216 26,920 1,423,558 Fund Balance - Beginning of Year 7,758,042 490,313 (121,777) 50,728 (8,537) 8,168,769 FUND BALANCE - END OF YEAR8,803,420$ 725,914$ (134,334)$ 178,944$ 18,383$ 9,592,327$
MERIDIAN DEVELOPMENT CORPORATION
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT
OF NET POSITION
SEPTEMBER 30, 2024
See accompanying Notes to Financial Statements.
(14)
TOTAL FUND BALANCES FOR GOVERNMENTAL FUNDS 9,592,327$
Total net position reported for governmental activities in the statement of net position is
different because:
Land 672,384
Equipment and Intangibles, Net of $140,547
Accumulated Depreciation -
Due to Developers (986,044)
212,689
Total Net Position as Shown on the Statement of Net Position 9,491,356$
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, 2024
See accompanying Notes to Financial Statements.
(15)
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 1,423,558$
In the statement of activities, long-term liabilities representing reimbursements against
future tax receipts are recorded as expenses. 1,452,056
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.128,158
Change in Net Position, as Reflected on the Statement of Activities 3,003,772$
Amounts reported for governmental activities in the statement of activities are different
because:
MERIDIAN DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
(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, 2024
(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, 2024
(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, 2024. 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, 2024 by MDC are nonspendable
in form. This includes prepaid expenses of $2,535. 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 $9,705,743 in restricted
fund balance at September 30, 2024.
MERIDIAN DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
(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 ($115,951) in unassigned fund balance at
September 30, 2024.
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, 2024, the account balance of the cash in bank was $9,634,043.
$9,384,043 was uninsured and uncollateralized as of September 30, 2024. Cash is held in
the custody of Washington Trust Bank in MDC’s name.
MERIDIAN DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
(20)
NOTE 3 CAPITAL ASSETS
Changes to capital assets are as follows:
Balance Balance
10/1/2023 Additions Deletions Transfers 9/30/2024
GOVERNMENTAL ACTIVITIES
Capital Assets, not
Depreciated Land 672,384$ -$ -$ -$ 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 $17,480 for costs related to joint projects.
MERIDIAN DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
(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, 2024, 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, 2024 of $8,818,972.
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, 2024, the Ten Mile Developers have incurred life-to-date eligible expenses and
requested reimbursements totaling $6,317,371. Of this amount, $2,105,508 was paid by
MDC in fiscal year 2024 and $4,149,003 was paid by MDC in prior fiscal years. The
remaining amount of $62,860 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, 2024, 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 2024 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, 2024
(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, 2024, the Old City Hall Developers have incurred life-to-date eligible expenses
and requested reimbursements totaling $678,000. Of this amount, $594,023 was paid by
MDC in fiscal year 2024 and $83,977 was paid by MDC in prior fiscal years. There is no
remaining amount to be paid as part of this agreement as of yearend.
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, 2024, the Bower Street Developers have incurred life-to-
date eligible expenses and requested reimbursements totaling $224,000. Of this amount,
$22,425 was paid by MDC in fiscal year 2024 and $28,391 was paid by MDC in prior fiscal
years. The remaining amount of $173,184 is to be paid, contingent upon the future receipt of
tax increment.
MERIDIAN DEVELOPMENT CORPORATION
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES –
BUDGET AND ACTUAL – GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2024
See accompanying Notes to Required Supplementary Information.
(23)
Budgeted Amounts Variance
Final Actual with
Original Amended Amounts Final Budget
REVENUES
General Property Tax Revenue 3,479,493$ 4,473,235$ 4,552,515$ 79,280$
Interest Earnings 80,000 80,000 118,460 38,460
Other Revenue - - 12,598 12,598
Total Revenues 3,559,493 4,553,235 4,683,573 130,338
EXPENDITURES
Office and Operating Expense 10,241,779 11,205,154 3,037,579 8,167,575
Professional Services, Surveys,
and Studies 250,311 250,311 212,530 37,781
Public Education and Marketing 15,000 15,000 9,906 5,094
Total Expenditures 10,507,090 11,470,465 3,260,015 8,210,450
NET CHANGE IN FUND BALANCES (6,947,597) (6,947,597) 1,423,558 8,340,788
Fund Balance - Beginning of Year 7,067,997 7,067,997 8,168,769 1,100,772
FUND BALANCE - END OF YEAR 120,400$ 120,400$ 9,592,327$ 9,441,560$
MERIDIAN DEVELOPMENT CORPORATION
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2024
(24)
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.
(25)
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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, 2024, 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, 2024.
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.
(26)
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, 2024
FY2025 BUDGET (OCTOBER 01, 2024 - SEPTEMBER 30, 2025)
FY2025
Amended
Budget
Operating Revenue
Property Tax Revenue - Downtown District 2,200,000
Funding Carryover from FY24 - Downtown District 7,649,819
Property Tax Revenue - Ten Mile District 2,806,969
Funding Carryover From FY24 - Ten Mile District 777,119
Property Tax Revenue - Union District without
ACHD TIF 87,551
Property Tax Revenue - Union District ACHD TIF
Only 13,082
Funding Carryover from FY24 - Union District
without ACHD TIF 7,815
Funding Carryover from FY24 - Union District
ACHD TIF 1,949
Property Tax Revenue - Northern Gateway without
ACHD TIF 144,849
Property Tax Revenue - Northern Gateway ACHD
TIF Only 21,644
Funding Carryover from FY24 - Northern Gateway
District without ACHD TIF 80,980
Funding Carryover from FY24 - Northern Gateway
District ACHD TIF 32,084
Property Tax Revenue - Linder District without
ACHD TIF 111,381
Property Tax Revenue - Linder District ACHD TIF
Only 16,640
Funding Carryover from FY24 - Linder District
without ACHD TIF 31,547
Funding Carryover from FY24 - Linder District
ACHD TIF 5,549
Interest Earnings 120,000
TOTAL REVENUES and AVAILABLE CASH 14,108,978$
Contractual Obligations:
Professional Services
Administrator Services - Downtown District 78,045
Administrator Services - Ten Mile District 25,176
Administrator Services - Union District 2,518
Administrator Services - Northern Gateway District
18,881
Administrator Services - Linder District 1,259
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 15,750
Legislative Services - Ten Mile District 15,750
Audit Services - Downtown District 8,700
Audit Services - Ten Mile District 8,700
Accounting Services - Downtown District 21,080
Accounting Services - Ten Mile District 6,800
Accounting Services - Union District 680
Accounting Services - Northern Gateway District 5,100
Accounting Services - Linder District 340
295,878
Operational Expenses
ICRMP-Insurance Premium/Claims 4,142
Partnerships - Valley Regional Transit 6,619
Partnerships - City of Meridian, Concerts on
Broadway 10,000
Irrigation Taxes - COMPASS/VRT Property 300
Legal Notices / Publications 2,000
FY2025 BUDGET (OCTOBER 01, 2024 - SEPTEMBER 30, 2025)
FY2025
Amended
Budget
Grounds Maintenance - Compass/VRT Property 7,000
30,061
ONGOING EXPENSES:
Accounting Software Maintenance/License 3,500
Parking Lot Maintenance - COMPASS/VRT &
Masons Parking Lot 6,500
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
22,900
Total Contractual Obligations 348,839
Revenues less Contractual Obligations 13,760,139
DISCRETIONARY EXPENSES:
Operational Expenses
Marketing/Promotional/Publications 1,000
Training and Meals 5,000
Dues and Subscriptions 5,600
SUBTOTAL OPERATIONAL EXPENSES 11,600
Project Expenditures
Owner Participation Reimbursement to Brighton
Corporation - Ten Mile District 2,526,272
Ten Mile Revenues - MDC's 10%979,470
Owner Participation Reimbursement to Galena
Opportunity Fund for Union 93 - Union District 80,000
Owner Participation Reimbursement to MKA, LLC
(Keller Associates) - Downtown District 40,000
Special Projects - Downtown District 7,273,732
Special Projects - Union District 5,726
Special Projects - Union District ACHD TIF 15,031
Special Projects - Northern Gateway District 135,783
Special Projects - Northern Gateway ACHD TIF 53,728
Special Projects - Linder District 140,606
Special Projects - Linder District ACHD TIF 22,191
Destination Downtown - Downtown District 29,750
Destination Downtown - Northern Gateway District
5,250
Nine-Mile Floodplain - Downtown District 2,000,000
Façade Improvement Program - Downtown District
200,000
Façade Improvement Program - Northern Gateway
District 50,000
Façade Improvement Program - Union District 5,000
Meridian Chamber Sponsorship - Oktoberfest -
Downtown District 10,000
SUBTOTAL CAPITAL EXPENDITURES 13,572,539
8% Reserve Based on Estimated Revenues
(Downtown District Only)176,000
TOTAL EXPENDITURES 14,108,978
NET -