01-13-2016 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Wednesday, January 13, 2016
Regular Meeting Packet
Board Members:
Tom Gdowski
Glen Murray
Sue Pirnie
Barry Sandstrom
Glenn Wilson
4:00 PM
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Call to Order
Roll Call
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for
Future Agenda Items form located at the Information Booth. If the issue can be handled administratively
without Council action, notification will be provided. If the item is scheduled for a meeting or study
session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve
time to speak. Please come forward, state your name and address, and the Agenda topic on which you will
be speaking.
DIRECTOR COMMUNICATION
This is an opportunity for the Director to comment on current events, activities, and issues of interest to
the commission.
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Community Redevelopment
Authority (CRA)
Wednesday, January 13, 2016
Regular Meeting
Item A1
Agenda
Staff Contact: Chad N
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AGENDA
Wednesday, January 13, 2016
4:00 p.m.
Grand Island City Hall
Open Meetings Notifications
1.Call to Order.Barry Sandstrom
This is a public meeting subject to the open meetings laws of the State of
Nebraska. The requirements for an open meeting are posted on the wall in
this room and anyone that wants to find out what those are is welcome to read
through them.
The CRA may vote to go into Closed Session on any Agenda Item as allowed by
State Law.
2.Approval of Minutes of December 9, 2015 Meeting.
3.Approval of Financial Reports.
4.Approval of Bills.
5.Review of Committed Projects and CRA Properties.
6.Audit.
7.Approve Resolution to Purchase/Sell Real Estate.
8.Directors Report.
9.Adjournment
Next Meeting February 10, 2016
The CRA may go into closed session for any agenda item as allowed by state law.
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Community Redevelopment
Authority (CRA)
Wednesday, January 13, 2016
Regular Meeting
Item B1
Meeting Minutes
Staff Contact: Chad Nabity
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OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
December 9, 2015
Pursuant to due call and notice thereof, a Regular Meeting of the Community
Redevelopment Authority of the City of Grand Island, Nebraska was conducted on
December 9, 2015 at City Hall 100 E First Street. Notice of the meeting was given in the
December 2, 2015 Grand Island Independent.
1.CALL TO ORDER. Glen Murray called the meeting to order at 4:00 p.m. The
following members were present: Glenn Wilson and Sue Pirnie. Also present
were; Director, Chad Nabity; Secretary Rose Rhoads; Sr. Accountant, Billy
Clingman.
Murray stated this was a public meeting subject to the open meeting laws of the
State of Nebraska. He noted that the requirements for an open meeting were
posted on the wall easily accessible to anyone who would like to read through
them.
2.APPROVAL OF MINUTES. A motion for approval of Minutes for the
November 18, 2015 meeting was made by Wilson and seconded by Pirnie. Upon
roll call vote all present voted aye. Motion carried unanimously.
3. APPROVAL OF FINANCIAL REPORTS. Clingman reviewed the financial
reports for the period of November 1, 2015 through November 30, 2015. Motion
was made by Pirnie and seconded by Wilson to approve the financial reports.
Upon roll call vote all present voted aye. Motion carried unanimously.
4. APPROVAL OF BILLS. The bills were reviewed. A motion was made by Pirnie
and seconded by Wilson to approve the bills in the amount of $76,877.03. Upon
roll call vote all present voted aye. Motion carried unanimously to approve the
payment of bills totaling $76,877.03.
5.REVIEW OF COMMITTED PROJECTS & CRA PROPERTY.
Nabity reviewed the Committed Projects.
6. DIRECTORS REPORT.
7.ADJOURNMENT. Murray adjourned the meeting at 4:20 p.m.
The next meeting is scheduled for January 13, 2016.
Respectfully submitted
Chad Nabity
Director
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Community Redevelopment
Authority (CRA)
Wednesday, January 13, 2016
Regular Meeting
Item C1
Financial Reports
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, January 13, 2016
Regular Meeting
Item C2
Balance Sheet
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, January 13, 2016
Regular Meeting
Item D1
BIlls
Staff Contact: Chad Nabity
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13-Jan-16
TO: Community Redevelopment Authority Board Members
FROM: Chad Nabity, Planning Department Director
RE: Bills Submitted for Payment
The following bills have been submitted to the Community
Redevelopment Authority Treasurer for preparation of payment.
City of Grand Island
Administration Fees Nov & Dec $ 7,096.59
Accounting Jan, Feb, March $ 450.00
Officenet Inc.
Postage
Lawnscape
Grand Island Independent $ 16.01
Hall Co Treasurer 3235 S Locust Property taxes $4,897.94
3235 S Locust Property taxes $131.24
Tower 217 Lif Safety Grant - Home Federal $94,888.27
Bacon & Vinton LLC
Mayer, Burns, Koenig & Janulewicz Legal Services
Total:
$ 107,480.05
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Community Redevelopment
Authority (CRA)
Wednesday, January 13, 2016
Regular Meeting
Item E1
Committed Projects
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, January 13, 2016
Regular Meeting
Item X1
Audit
Staff Contact: Chad Nabity
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COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATION
September 30, 2015
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1
TABLE OF CONTENTS Page
INDEPENDENT AUDITORS’ REPORT 2
MANAGEMENT’S DISCUSSION AND ANALYSIS 5
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Position 11
Statement of Activities 12
Fund Financial Statements
Balance Sheet - Governmental Fund 13
Reconciliation of the Balance Sheet - Governmental Fund
to the Statement of Net Position 14
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Governmental Fund 15
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balance - Governmental Fund to the
Statement of Activities 16
Notes to Financial Statements 17
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule 38
Note to Required Supplementary Information 39
SUPPLEMENTARY INFORMATION
Schedule of Expenditures - General Fund 40
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 42
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3
no such opinion. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of significant accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities and the major fund of the
Community Redevelopment Authority of Grand Island, Nebraska, as of September 30, 2015, and
the respective changes in financial position, thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Other Matters
The financial statements present only the Community Redevelopment Authority of Grand Island,
Nebraska component unit and do not purport to, and do not, present fairly the financial position
of the City of Grand Island, Nebraska, as of September 30, 2015, and the change in its financial
position and cash flows for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
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 on pages 5–10 and
38–39 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 Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Community Redevelopment Authority of Grand Island, Nebraska’s
basic financial statements. The schedule of expenditures for the General Fund is presented for
purposes of additional analysis and is not a required part of the basic financial statements. The
schedule of expenditures for the General Fund is the responsibility of management and was
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COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For The Year Ended September 30, 2015
5
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the Community Redevelopment Authority of Grand Island, Nebraska, we offer
readers of the Community Redevelopment Authority of Grand Island, Nebraska financial
statements this narrative overview and analysis of the financial activities of the Community
Redevelopment Authority of Grand Island, Nebraska, for the fiscal year ended September 30,
2015.
Financial Highlights
• The assets of the Community Redevelopment Authority of Grand Island, Nebraska, exceeded
its liabilities at the close of the most recent fiscal year by $73,455 (net position). Of this
amount, there was a deficit balance of ($660,586) in unrestricted net position, which may be
used to meet the government’s ongoing obligations to citizens and creditors.
• At the end of the current fiscal year, unassigned fund balance for the General Fund was a
deficit balance of $(382,093).
Program Highlights
• The CRA will continue to emphasize the acquisition and demolition of substandard
properties. The CRA and City Council are encouraging developers to look for areas of
“Micro-Blight” that could be significantly improved by the acquisition, demolition and
construction of a new residential unit or units.
• The CRA will continue to direct attention toward business/industry developments that result
in economic development and the creation of new jobs. These efforts may include tax
increment financing, infrastructure development, land acquisition, or other types of allowable
assistance. The City of Grand Island and the CRA also approved by TIF to support the
development of a business at the Platte Valley Industrial Park East between Schimmer and
Wildwood west of Blaine. The project would create almost 50 new jobs at that site and
additional employment around the region while expanding the diversity of the agricultural
base. Other projects approved include the redevelopment of the Skagway north site for a
new Super Saver grocery store and the Skagway South site as the new corporate headquarters
for Bosselman Companies.
• The CRA will continue to look for areas ripe for redevelopment and encourages private
individuals and developers to submit blighted and substandard studies to the Grand Island
City Council for consideration. During 2014 the CRA contracted to have a Blighted and
Substandard Study conducted for the Veteran’s Home Property. The Study was completed
and presented to the CRA in November 2014. On December 1, 2015 the Governor
announced plans to return the Veteran’s Home Property to the City of Grand Island. As that
transaction occurs and the property is annexed into the city it is anticipated that the blight
study will also be forwarded for approval. Blighted and Substandard Areas 17 and 18 were
approved by Council this year. It is hoped that area 17 will spur development along the 281
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COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
For The Year Ended September 30, 2015
6
corridor south toward the Interstate. Area 18 is located along the Union Pacific rail road
tracks between Custer and Webb.
• The CRA has developed strategies to limit the exposure of the CRA and the City when a
TIF project is approved. Primarily this is done with the contract for TIF. The Developer
receives a grant for the TIF from the CRA and then purchases a bond from the CRA to be
repaid from the TIF revenues. This bond can be used as security by the developer for
financing or held by the developer. The only source of repayment of this bond is the TIF
revenue generated by the project. The bond is limited to 15 years from the time it is issued
or amended and capped at the limit of the TIF eligible expenses or the expected revenue
from the TIF over the 15 year period. This reduces the CRA’s exposure on new TIF
projects.
• The CRA will continue to work with Housing Providers, including Habitat for Humanity
and the Housing Development Corporation. The CRA actively seeks out opportunities to
partner with these types of organizations to provide quality and affordable housing in Grand
Island. The second phase of the Copper Creek subdivision included 76 new houses during
the 2015 year.
• The CRA continues to work with Downtown, and is supportive of continued efforts to
redevelop buildings, especially on the upper floors. During the 2015 year the CRA
approved a grant of $115,000 under the upper story life safety program and an additional
$60,000 toward the same project from the other grant funds program to convert the Labor
Temple building from commercial to 11 apartments (seven upper story and four garden
level). The CRA also approved TIF for the redevelopment of Kaufman building for
additional office space and forwarded a redevelopment plan regarding the Chocolate Bar to
City Council. The 2016 budget includes $285,000 ($100,000 each from the City and the
CRA and $85,000 of carryover funds from 2015) for life safety infrastructure grants in the
downtown area for projects that include upper story residential development. The CRA
purchased two lots at the corner of third and elm during the last year. This was the location
of Ron’s Transmission and the building was destroyed in a fire. The CRA purchased the
lots for $80,000 and will make the property available for redevelopment. The CRA has
approved a process for receiving development proposals on the site.
• The CRA approved Tax Increment Financing projects along South Locust for Bosselman’s
Corporate office and for a new duplex project just west of the Bosselman project on south
Eddy, by TC Enck Builders. One project was approved in the downtown for development
of additional office space in the Kaufman Building, another project on the Chocolate Bar
for expansion of that business has been proposed but not moved to council at the request of
the developer. Projects were also approved at 5 Points for additional redevelopment at the
Skagway location (this is the project that fell through at the end of 2014) and the final
contracts for the Veteran’s housing project at the Veteran’s Hospital by Pridon, LLC. The
first project at the Platte Valley Industrial Park East was approved for Hatchery Holdings,
LLC.
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COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
For The Year Ended September 30, 2015
7
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Community
Redevelopment Authority of Grand Island, Nebraska’s basic financial statements. The
Community Redevelopment Authority of Grand Island, Nebraska’s basic financial statements
comprise three components: 1) government-wide financial statements, 2) fund financial
statements, and 3) notes to the financial statements. This report also contains required and
supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the Community Redevelopment Authority
of Grand Island, Nebraska’s finances in a manner similar to a private-sector business.
The statement of net position presents information on all of the Community Redevelopment
Authority of Grand Island, Nebraska’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 Community Redevelopment Authority of Grand
Island, Nebraska, is improving or deteriorating.
The statement of activities presents information showing how the government’s net position
changed during the most recent fiscal year. All changes in net position are reported as soon as
the underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will only
result in cash flows in future fiscal periods.
The government-wide financial statements include only the CRA itself (known as the primary
government).
The government-wide financial statements can be found on pages 11 and 12 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The
Community Redevelopment Authority of Grand Island, Nebraska, uses fund accounting to ensure
and demonstrate compliance with finance-related legal requirements.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However,
unlike the government-wide financial statements, governmental fund financial statements focus
on near-term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in evaluating a
government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government’s near-term
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COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
For The Year Ended September 30, 2015
8
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The Community Redevelopment Authority of Grand Island, Nebraska, maintains one individual
governmental fund, the General Fund.
The Community Redevelopment Authority of Grand Island, Nebraska, adopts an annual
appropriated budget for its governmental fund. A budgetary comparison statement has been
provided to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 13-16 of this report.
Notes to the financial statements. The notes provide additional information that is essential to
a full understanding of the data provided in the government-wide and fund financial statements.
The notes to the financial statements can be found on pages 17-37 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the Community
Redevelopment Authority of Grand Island, Nebraska’s budgetary comparison schedule.
Required supplementary information can be found on pages 38 and 39 of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s
financial position. In the case of the Community Redevelopment Authority of Grand Island,
Nebraska, assets exceeded liabilities by $73,455 at the close of the most recent fiscal year.
Increase
2015 2014 (Decrease)
Current and Other Assets 1,384,486$ 1,364,571$ 19,915$
Capital Assets 575,369 495,354 80,015
Total Assets 1,959,855 1,859,925 99,930
Long-term Liabilities 1,561,669 1,811,842 (250,173)
Other Liabilities 324,731 309,839 14,892
Total Liabilities 1,886,400 2,121,681 (235,281)
Net Position:
Net investment in capital assets 575,369 495,354 80,015
Restricted 158,672 12,323 146,349
Unrestricted (660,586) (769,433) 108,847
Total Net Position 73,455$ (261,756)$ 335,211$
Summary Statements of Net Position
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COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
For The Year Ended September 30, 2015
9
A significant portion of the Community Redevelopment Authority of Grand Island, Nebraska’s
net position ($575,369) reflects its investment in capital assets (land held for redevelopment).
These assets are not available for future spending.
Net position of $158,672 is restricted for redevelopers and for life safety grants. The remaining
balance of unrestricted net position is a deficit balance of ($660,586). Unrestricted net position
may be used to meet the government’s ongoing obligations to citizens and creditors.
Net position increased $335,211 for the year ended September 30, 2015.
Expenses and Program Revenues
Year Ended September 30, 2015 Year Ended September 30, 2014
Program Program Program Program
Revenues Expenses Revenues Expenses
General government $ - $ 77,524 $ - $ 75,192
Community development 1,242,099 1,494,177 372,282 379,412
Interest expense - 50,541 - 56,231
Total $ 1,242,099 $ 1,622,242 $ 372,282 $ 510,835
SOURCES OF REVENUE
Operating grants and contributions 1,242,099$ 63.46 %372,282$ 35.02 %
Property taxes 687,932 35.14 667,728 62.81
Interest 159 0.01 142 0.01
Other income 27,263 1.39 22,973 2.16
Total 1,957,453$ 100.00 %1,063,125$ 100.00 %
Year Ended September 30, 2015 Year Ended September 30, 2014
Revenues by Source
Financial Analysis of the Government’s Funds
As noted earlier, the Community Redevelopment Authority of Grand Island, Nebraska, used fund
accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental Fund. The focus of the Community Redevelopment Authority of Grand Island,
Nebraska’s governmental fund is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the Community
Redevelopment Authority of Grand Island, Nebraska’s financing requirements. In particular,
unassigned fund balance may serve as a useful measure of a government’s net resources
available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the Community Redevelopment Authority of Grand
Island, Nebraska’s governmental fund reported an ending fund balance of $919,081. The
unassigned fund balance, which is available for spending at the government’s discretion, was a
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COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
For The Year Ended September 30, 2015
10
deficit of $(382,093). The remainder of the fund balance is not available for new spending
because it has already been 1) committed for future grant projects ($1,142,502), 2) restricted for
developers ($58,672), or 3) restricted for life safety grants ($100,000).
The General Fund is the only fund of the Community Redevelopment Authority of Grand Island,
Nebraska. As a measure of the General Fund’s liquidity, it may be useful to compare total fund
balance to total fund expenditures. Total fund balance represents 47.2 percent of General Fund
expenditures.
The fund balance of the Community Redevelopment Authority of Grand Island, Nebraska’s
General Fund increased by $75,196 during the current fiscal year.
General Fund Budgetary Highlights
There was no difference between the original budget and the final adopted budget.
Capital Asset and Debt Administration Capital Assets. The Community Redevelopment Authority of Grand Island, Nebraska’s
investment in capital assets (land held for redevelopment) as of September 30, 2015, amounts to
$575,369. The Authority purchased land for $80,015 during the year ended September 30, 2015.
Long-term debt. During the year ended September 30, 2013, the Community Redevelopment
Authority of Grand Island, Nebraska issued $1,800,000 of limited tax obligation bonds payable
to finance the Lincoln Pool project. Bond principal of $175,000 was paid during the year ended
September 30, 2015, leaving an outstanding balance of $1,455,000. At the end of the current
fiscal year, the Community Redevelopment Authority of Grand Island, Nebraska, had notes
payable of $356,842. The notes payable decreased by $70,309 (16.5 percent) during the current
fiscal year.
Economic Factors and Next Year’s Budget
• Grants of $676,004 are committed to be paid during the next 12 months, with an
additional $466,498 committed to be paid through 2018.
These factors were considered in preparing the Community Redevelopment Authority of Grand
Island, Nebraska’s budget for the year ending September 30, 2016.
Request for Information
This financial report is designed to provide a general overview of the Community
Redevelopment Authority of Grand Island, Nebraska’s finances for all those with an interest in
the government’s finances. Questions concerning any of the information provided in this report
or requests for additional financial information should be addressed to the Director, Community
Redevelopment Authority of Grand Island, Nebraska, P.O. Box 1968, Grand Island, NE 68802.
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COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
STATEMENT OF NET POSITION
September 30, 2015
ASSETS
Current assets:
Cash 682,681$
County treasurer cash 87,328
Property taxes receivable 64,958
Current portion of TIF receivables 25,769
Total current assets 860,736
Noncurrent assets:
Restricted cash 158,672
Noncurrent portion of TIF receivables 365,078
Land held for redevelopment 575,369
Total noncurrent assets 1,099,119
Total assets 1,959,855
LIABILITIES
Current liabilities:
Accounts payable 9,225
Unavailable property taxes 59,044
Accrued interest payable 6,289
Current portion of notes payable 75,173
Current portion of bonds payable 175,000
Total current liabilities 324,731
Noncurrent liabilities:
Noncurrent portion of notes payable 281,669
Noncurrent portion of bonds payable 1,280,000
Total noncurrent liabilities 1,561,669
Total liabilities 1,886,400
NET POSITION
Net investment in capital assets 575,369
Restricted for developers 58,672
Restricted for life safety grants 100,000
Unrestricted (660,586)
Total net position 73,455$
See notes to financial statements.
11
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COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
STATEMENT OF ACTIVITIES
For the year ended September 30, 2015
Net (Expenses)
Revenues and
Changes
Operating Capital in Net Position
Charges for Grants and Grants and Governmental
Expenses Services Contributions Contributions Activities
FUNCTIONS/PROGRAMS
Governmental activities:
General government 77,524$ -$ -$ -$ (77,524)$
Community development 1,494,177 - 1,242,099 - (252,078)
Interest on long-term debt 50,541 - - - (50,541)
Total governmental activities 1,622,242$ -$ 1,242,099$ -$ (380,143)
General revenues:
Taxes:
Property taxes 687,932
Interest income 159
Other income 27,263
Total general revenues 715,354
Change in net position 335,211
Net position - beginning of year (261,756)
Net position - end of year 73,455$
See notes to financial statements.
12
Program Revenues
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COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
BALANCE SHEET - GOVERNMENTAL FUND
September 30, 2015
ASSETS
Cash 841,353$
County treasurer cash 87,328
Property taxes receivable 64,958
Total assets 993,639$
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable 9,225$
Unavailable property taxes 59,044
Accrued interest payable 6,289
Total liabilities 74,558
Fund balance:
Restricted for developers 58,672
Restricted for life safety grant 100,000
Committed for projects 1,142,502
Unassigned (382,093)
Total fund balance 919,081
Total liabilities and fund balance 993,639$
See notes to financial statements.
13
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COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
RECONCILIATION OF THE BALANCE SHEET -
GOVERNMENTAL FUND TO THE
STATEMENT OF NET POSITION
September 30, 2015
Total fund balance - governmental funds 919,081$
Amounts reported for governmental activities in the statement of
net position are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the fund statements.575,369
TIF receivables are noncurrent assets that are not available to
pay for current-period expenditures and therefore are not
reported in the fund statements.390,847
Long-term liabilities, including notes and bonds payable, are not
due and payable in the current period and therefore are not
reported in the fund statements.
Notes payable (356,842)$
Bonds payable (1,455,000) (1,811,842)
Total net position - governmental activities 73,455$
See notes to financial statements.
14
Grand Island Regular Meeting - 1/13/2016 Page 36 / 69
COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - GOVERNMENTAL FUND
For the year ended September 30, 2015
REVENUES
Property taxes 687,932$
TIF receipts 1,207,408
Grant revenue 100,000
Interest income 158
Other income 27,263
Total revenues 2,022,761
EXPENDITURES
Contract services 62,422
Matching grant funds 405,637
Professional services 14,204
Other 898
Capital outlay 80,015
Conduit debt payments 1,088,540
Debt service:
Principal payments 245,308
Interest 50,016
Bond fees 525
Total expenditures 1,947,565
Net change in fund balance 75,196
Fund balance - September 30, 2014 843,885
Fund balance - September 30, 2015 919,081$
See notes to financial statements.
15
Grand Island Regular Meeting - 1/13/2016 Page 37 / 69
COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUND
TO THE STATEMENT OF ACTIVITIES
For the year ended September 30, 2015
Total net change in fund balance - governmental funds 75,196$
Amounts reported for governmental activities in the statement of
activities are different because:
TIF proceeds were received, decreasing the TIF receivable
balance on the statement of net position. These proceeds are
recorded as revenue on the fund statement.(65,309)
Purchase of land is recorded as an expense in the fund statement,
but is recorded as an increase to capital assets on the statement
of net position.80,015
Principal payments on long-term debt are recorded as
expenditures in the fund statement, but are recorded as a
reduction in liabilities on the statement of net position.
Notes payable 70,309$
Bonds payable 175,000 245,309
Change in net position of governmental activities 335,211$
See notes to financial statements.
16
Grand Island Regular Meeting - 1/13/2016 Page 38 / 69
17
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS
INDEX
Page
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. Financial Reporting Entity 18
2. Basis of Presentation 19
3. Measurement Focus and Basis of Accounting 20
4. Assets, Liabilities, and Equity 21
5. Revenues, Expenditures, and Expenses 25
NOTE B – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
1. Deposit Laws and Regulations 26
2. Budgetary Data 26
NOTE C – DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS
1. Cash and Certificates of Deposit 28
2. TIF Receivables 29
3. Land Held for Redevelopment 30
4. Long-term Debt 30
NOTE D – OTHER NOTES
1. Risk Management 32
2. Commitments and Contingencies 34
3. Interlocal Agreement 34
4. Conduit Debt 35
5. Additional TIF Agreements 36
6. Subsequent Events 37
Grand Island Regular Meeting - 1/13/2016 Page 39 / 69
18
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS
September 30, 2015
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Community Redevelopment Authority of Grand Island, Nebraska
(Authority) are prepared in accordance with generally accepted accounting principles (GAAP).
The Authority’s reporting entity applies all relevant Governmental Accounting Standards Board
(GASB) pronouncements.
The accounting and reporting framework and the more significant accounting principles and
practices are discussed in subsequent sections of this Note.
1. Financial Reporting Entity
The Community Redevelopment Authority of Grand Island, Nebraska, was created by the Grand
Island City Council on June 27, 1994, pursuant to Nebraska State Statutes. The purpose of the
Authority is to prevent and eliminate blighted areas in the City of Grand Island, Nebraska. The
Authority is reported as a component unit of the City of Grand Island, Nebraska.
The Authority’s financial reporting entity comprises the following:
Primary Government: Community Redevelopment Authority of
Grand Island, Nebraska
In determining the financial reporting entity, the Authority complies with the provisions of
GASB Statement No. 61, and has addressed all potential component units (traditionally separate
reporting entities) for which the Authority may be financially accountable, and, as such, should
be included within the Authority’s financial statements. The Authority (the primary government)
is financially accountable if it appoints a voting majority of the organization’s governing board
and (1) it is able to impose its will on the organization or (2) there is a potential for the
organization to provide specific financial benefits to or impose specific financial burdens on the
Authority. Additionally, the primary government is required to consider other organizations for
which the nature and significance of their relationship with the primary government are such that
exclusion would cause the reporting entity’s financial statements to be misleading.
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19
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
1. Financial Reporting Entity, continued
Blended Component Units
Blended component units are separate legal entities that meet the component unit criteria
described above and whose governing body is the same or substantially the same as the Authority
Board or the component unit provides services entirely to the Authority. These component units’
funds are blended into those of the Authority by appropriate activity type to compose the primary
government presentation. Currently, the Authority has no blended component units.
Discretely Presented Component Units
Discretely presented component units are separate legal entities that meet the component unit
criteria described above but do not meet the criteria for blending. The Authority currently has no
discretely presented component units.
2. Basis of Presentation
Government-wide Financial Statements
The Statement of Net Position and Statement of Activities display information about the
reporting government as a whole. They include all funds of the reporting entity. Governmental
activities generally are financed through taxes, intergovernmental revenues, and other
nonexchange revenues.
Fund Financial Statements
Fund financial statements of the reporting entity are organized into funds, each of which is
considered to be a separate accounting entity. Each fund is accounted for by providing a separate
set of self-balancing accounts that constitute its assets, liabilities, fund equity, revenues, and
expenditures/expenses. An emphasis is placed on major funds. A fund is considered major if it
is the primary operating fund of the Authority or meets the following criteria:
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20
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
2. Basis of Presentation, continued
Fund Financial Statements, continued
a. Total assets, liabilities, revenues, or expenditures/expenses of that individual
governmental fund are at least 10 percent of the corresponding total for all funds of
that category or type; and
b. Total assets, liabilities, revenues, or expenditures/expenses of the individual
governmental fund are at least 5 percent of the corresponding total for all
governmental funds combined.
The major fund of the financial reporting entity is described below:
Governmental Fund
General Fund
The General Fund is the primary operating fund of the Authority and is always classified as a
major fund. It is used to account for all activities except those legally or administratively
required to be accounted for in other funds.
3. Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe “which” transactions are recorded within the
various financial statements. Basis of accounting refers to “when” transactions are recorded
regardless of the measurement focus applied.
Measurement Focus
On the government-wide Statement of Net Position and the Statement of Activities, the
governmental activities are presented using the economic resources measurement focus. The
accounting objectives of this measurement focus are the determination of operating income,
changes in net position (or cost recovery), financial position, and cash flows. All assets and
liabilities (whether current or noncurrent) associated with their activities are reported.
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21
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
3. Measurement Focus and Basis of Accounting, continued
Measurement Focus, continued
In the fund financial statements, the “current financial resources” measurement focus is used.
Only current financial assets and liabilities are generally included on their balance sheets. Their
operating statements present sources and uses of available spendable financial resources during a
given period. These funds use fund balance as their measure of available spendable financial
resources at the end of the period.
Basis of Accounting
In the government-wide Statement of Net Position and Statement of Activities, activities are
presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues
are recognized when earned and expenses are recorded when the liability is incurred or economic
asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and
exchange-like transactions are recognized when the exchange takes place.
In the fund financial statements, governmental funds are presented on the modified accrual basis
of accounting. Under the modified accrual basis of accounting, revenues are recognized when
“measurable and available.” Measurable means knowing or being able to reasonably estimate the
amount. Available means collectible within the current period or within 60 days after year end.
Expenditures (including capital outlay) are recorded when the related fund liability is incurred.
4. Assets, Liabilities, and Equity
Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those estimates.
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22
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
4. Assets, Liabilities, and Equity, continued Cash and Certificates of Deposit
For the purpose of the Statement of Net Position, “cash” includes all demand accounts and
savings accounts. The County Treasurer’s cash represents revenues collected not yet remitted to
the Authority.
Certificates of deposit are carried at cost, which approximates fair market value. Additional cash
and certificate of deposit disclosures are presented in Notes B1, C1, and D1.
When both restricted and unrestricted resources are available for use, it is the Authority’s policy
to use restricted resources first, then unrestricted resources as they are needed.
Property Taxes Receivable and Unavailable Property Taxes
In both the government-wide statements and fund financial statements, property taxes receivable
represents levied but uncollected taxes. The unavailable property taxes represent the portion of
property taxes receivable expected to be collected more than 60 days after September 30, 2015.
TIF Receivables
In the government-wide statements, TIF receivables consist of all estimated future amounts to be
received under the TIF agreements. Estimated receivables are adjusted annually. There is no
allowance for uncollectible TIF receivables.
In the fund financial statements, the TIF receivables are not reported as assets. Revenue is
recognized as TIF payments are received by the CRA.
Land Held for Redevelopment
Land held for redevelopment is carried at historical cost in the government-wide statements. It is
not reported in the fund financial statements, which use the current financial resources
measurement focus.
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23
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
4. Assets, Liabilities, and Equity, continued
Bonds and Notes Payable
The accounting treatment of bonds and notes payable depends on whether the assets are reported
in the government-wide or fund financial statements.
Government-wide Statements
All long-term debt to be repaid from governmental resources is reported as liabilities in the
government-wide statements. The long-term debt consists of bonds and notes payable.
Fund Financial Statements
Bonds and notes payable for governmental funds are not reported as liabilities in the fund
financial statements. The payment of these liabilities is reported as an expenditure.
Equity Classifications
Government-wide Statements
Equity is classified as net position and displayed in three components:
a. Net investment in capital assets – Consists of capital assets, including restricted
capital assets, net of accumulated depreciation and reduced by the outstanding
balances of any bonds, mortgages, notes, or other borrowings that are attributable to
the acquisition, construction, or improvement of those assets. The land held for
redevelopment is included in this category of net position.
b. Restricted net position – Consists of net position with constraints placed on their use
either by (1) external groups such as creditors, grantors, contributors, or laws or
regulations of other governments; or (2) law through constitutional provisions or
enabling legislation.
c. Unrestricted net position – All other net position that does not meet the definition of
“restricted” or “net investment in capital assets.”
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24
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
4. Assets, Liabilities, and Equity, continued
Equity Classifications, continued
Fund Financial Statements
Governmental fund equity is classified as fund balance. Effective October 1, 2010, the CRA
adopted GASB Statement No. 54, which redefined how fund balances of the governmental funds
are presented in the financial statements.
Fund balances are classified as follows:
Nonspendable−Amounts that cannot be spent either because they are not in a spendable
form or because they are legally or contractually required to be maintained intact.
Restricted−Amounts that can be spent only for specific purposes because of the CRA
Charter, City Code, state or federal laws or externally imposed conditions by grantors or
creditors.
Committed−Amounts that can be used only for specific purposes determined by a formal
action by CRA Board ordinance or resolution.
Assigned−Amounts that are designated by the Executive Director for a specific purpose
but are not spendable until a budget ordinance is passed by the CRA Board.
Unassigned−All amounts not included in other spendable classifications.
The details of the fund balances are included in the Governmental Funds Balance Sheet (page
13). Restricted funds are used first as appropriate. Assigned Funds are reduced to the extent that
expenditure authority has been budgeted by the CRA Board or the Assignment has been changed
by the Executive Director. Decreases to fund balance first reduce Unassigned Fund balance; in
the event that Unassigned Fund Balance becomes zero, then Assigned and Committed Fund
Balances are used in that order.
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25
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
5. Revenues, Expenditures, and Expenses
Property Taxes
The Authority has the power to levy taxes through the City of Grand Island each year sufficient
to pay any judgment existing against the Authority, the interest on bonded debt, and the principal
on bonded debt, as well as taxes authorized by state law.
On or before August 1, the Authority submits a request for property taxes to the City of Grand
Island, who is responsible for levying such taxes for operational costs.
The tax levies for all political subdivisions in Hall County are certified by the County Board on
or before October 15. Real estate taxes are due on December 31 and attach as an enforceable lien
and become delinquent in two equal installments on May 1 and September 1. Personal property
taxes are due in the same manner as real estate taxes. Delinquent taxes bear 14 percent interest.
Property taxes levied for 2014-2015 are recorded as revenue when levied by the County. The
CRA also records deferred revenue for property taxes expected to be received more than 60 days
after year end.
Expenditures/Expenses
In the government-wide financial statements, expenses are classified by character and function
for governmental activities.
In the fund financial statements, governmental funds report expenditures of financial resources,
classified by character and function.
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26
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE B – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
By its nature as a local government unit, the Authority is subject to various federal, state, and
local laws and contractual regulations. An analysis of the Authority’s compliance with
significant laws and regulations and demonstration of its stewardship over Authority resources
follows:
1. Deposit Laws and Regulations
Custodial credit risk is the risk that, in the event of a bank failure, a government’s deposits may
not be returned to it. The Authority’s deposit policy for custodial credit risk requires compliance
with the provisions of state law.
State law requires collateralization of all deposits with federal depository insurance or with U.S.
Treasury and U.S. agency securities having an aggregate value at least equal to the amount of the
deposits. The Authority’s cash deposits are insured up to $250,000 and certificates of
deposit/savings accounts are insured up to $250,000 by the Federal Deposit Insurance
Corporation (FDIC). Any cash deposits or certificates of deposit in excess of the FDIC limits
are insured by collateral held by the pledging institution in the Authority’s name.
2. Budgetary Data
The Authority is required by state laws to adopt annual budgets for all fund types. Each budget is
presented on the cash basis of accounting, which is consistent with the requirements of the state
budget act.
The Nebraska Budget Act provides the prescribed budget practices and procedures that
governing bodies are required to follow. The amounts that may be budgeted for certain specific
funds are subject to various expenditure and/or tax levy limitations.
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27
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE B – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY, continued
2. Budgetary Data, continued
The Authority follows these procedures in establishing the budgetary data reflected in the
accompanying financial statements.
a. On or before August 1, the Authority prepares a budget for the fiscal year
commencing October 1. The budget includes proposed expenditures and resources
available.
b. The budget is published with subsequent public hearings to obtain taxpayer
comments.
c. Prior to September 20, the Board adopts the budget, which is then filed with the
appropriate state and county officials.
d. Total expenditures may not legally exceed total appropriations. Appropriations lapse
at year end and any revisions require board approval.
e. The County Clerk certifies a preliminary property tax levy for each fund of the
Authority which levied property taxes in the county the previous year based on the
combined valuation and amount required for the Authority the prior year. The
preliminary levy becomes the final levy unless the governing board passes, by a
majority vote, a resolution setting the levy at a different amount.
f. The property tax requirements resulting from the budget process are utilized by the
County Assessor to establish the tax levy. Taxes are levied annually on or before
November 1. Real property taxes and personal property taxes are due December 31
with the first half delinquent May 1 and the second half delinquent September 1.
g. Appropriations lapse at the end of the fiscal year, except for capital improvement
appropriations and certain encumbrances against operating budgets.
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28
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE B – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY, continued
2. Budgetary Data, continued
h. The Community Redevelopment Authority of Grand Island, Nebraska, adopts a
budget by resolution for all funds.
NOTE C – DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS
The following notes present detailed information to support the amounts reported in the basic
financial statements for the Authority’s various assets, liabilities, equity, revenues, and
expenditures/expenses.
1. Cash and Certificates of Deposit
Deposits
The Authority’s policies regarding deposits of cash are discussed in Note A4. The table
presented below is designed to disclose how its deposits were insured or secured with collateral
at September 30, 2015. The categories of collateral are defined as follows:
Category 1 – Insured by FDIC or collateralized with securities held by the Authority (or
public trust) or by its agent in its name.
Category 2 – Uninsured but collateralized with securities held by the pledging financial
institution’s trust department or agent in the Authority’s name.
Category 3 – Uninsured and uncollateralized; or collateralized with securities held by the
pledging financial institution, or by its trust department or agent, but not in the
Authority’s name; or collateralized with no written or approved collateral agreement.
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29
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE C – DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS, continued
1. Cash and Certificates of Deposit, continued
Total
Total Bank Category Category Category Carrying
Types of Deposits Balance 1 2 3 Value
Demand deposits and
certificates of deposit $ 958,880 $ 250,000 $ 708,880 $ - $ 841,353
Reconciliation to Government-wide Statement of Net Position:
Primary Government –
Unrestricted cash $ 682,681
Restricted cash 158,672
$ 841,353
2. TIF Receivables
The Community Redevelopment Authority of Grand Island, Nebraska, has undertaken a program
for the redevelopment of blighted areas in the City. Under the program, various projects agree to
create a minimum taxable valuation for real estate tax assessment purposes. The CRA receives
the incremental real estate taxes paid by the projects and then uses the tax incremental financing
(TIF) funds to make debt service payments on the related notes payable. Estimated future
receivables under TIF agreements were as follows as of September 30, 2015:
Poplar Street $ 92,677
RSF Limited 1,639
PROCON Development Company, LLC 38,685
Walnut Housing, Ltd. 257,846
$ 390,847
Current portion of TIF receivables $ 25,769
Noncurrent portion of TIF receivables 365,078
$ 390,847
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30
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE C – DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS, continued
3. Land Held for Redevelopment
Capital asset activity for the year ended September 30, 2015, was as follows:
Balance at Balance at
October 1, 2014 Additions Disposals September 30, 2015
Governmental Activities:
Capital assets not being depreciated:
Land held for redevelopment $ 495,354 $ 80,015 $ - $ 575,369
4. Long-term Debt
The following is a summary of the changes to long-term debt for the year ended September 30,
2015:
Balance Balance Due Within
9/30/14 Additions Payments 9/30/15 One Year
Limited Tax Obligation Bonds $ 1,630,000 $ - $ (175,000) $ 1,455,000 $ 175,000
Note payable – Wells Fargo Bank 12,537 - ( 3,420) 9,117 3,660
Note payable – Home Federal
Savings & Loan 70,855 - ( 14,306) 56,549 15,325
Note payable – Lincoln Federal
Savings 343,759 - ( 52,583) 291,176 56,188
Total $ 2,057,151 $ - $ (245,309) $ 1,811,842 $ 250,173
Long-term debt at September 30, 2015, consists of the following:
a. The Authority issued $1,800,000 of limited tax obligation bonds on October 30, 2012.
The funds were used to finance the Lincoln Pool project. The bonds bear interest ranging
from 0.40 to 2.40 percent. Principal payments are due annually commencing December
15, 2013 through December 15, 2022. Interest payments are due semi-annually on June
15th and December 15th.
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31
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE C – DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS, continued
4. Long-term Debt, continued
b. The Authority borrowed $37,000 from Wells Fargo Bank on September 3, 2002. The
funds were used to finance the RSF Limited redevelopment project. The note is
collateralized by a promissory note from the redeveloper and a deed of trust on the real
estate included in the project. The incremental tax revenue increase by the redeveloped
property is pledged to be used for payment of the note. The note bears interest of 6.90
percent and payments are due semi-annually through December 15, 2017. The unpaid
principal balance at September 30, 2015, was $9,117.
c. The Authority borrowed $169,267 from Home Federal Savings and Loan on September 1,
2003. The funds were used to finance the PROCON Development Company, LLC,
redevelopment project. The note is collateralized by a promissory note from the
redeveloper and a deed of trust on the real estate included in the project. The incremental
tax revenue increase by the redeveloped property is pledged to be used for payment of the
note. The note bears interest of 7.0 percent and payments are due semi-annually beginning
June 15, 2005, through December 15, 2018. The unpaid principal balance at September
30, 2015, was $56,549.
d. The Authority borrowed $668,000 from Lincoln Federal Savings Bank on December 15,
2005. The funds were used to finance the Walnut Housing, Ltd., redevelopment project.
The note is collateralized by a promissory note from the redeveloper and a deed of trust on
the real estate included in the project. The incremental tax revenue increase by the
redeveloped property is pledged to be used for payment of the note. The note bears
interest of 6.74 percent and payments are due semi-annually beginning June 15, 2006,
through December 15, 2019. The unpaid principal balance at September 30, 2015, was
$291,176.
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32
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE C – DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS, continued
4. Long-term Debt, continued
Scheduled debt service payments are as follows:
Year Ended September 30, Principal Interest Total
2016 $ 250,173 $ 44,751 $ 294,924
2017 255,374 38,325 293,699
2018 258,283 31,175 289,458
2019 255,780 23,304 279,084
2020 222,232 15,444 237,676
2021-2025 570,000 19,963 589,963
$ 1,811,842 $ 172,962 $ 1,984,804
NOTE D – OTHER NOTES
1. Risk Management
The Authority is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters. The
Authority has purchased commercial insurance to minimize the effect of possible exposure to
these risks. Settled claims have not significantly exceeded this commercial coverage in any of
the past three years.
Deposits and Investments Custodial Credit Risk. For an investment, custodial credit risk is the risk that, in the event of the
failure of the counterparty, the Authority will not be able to recover the value of its investment or
collateral securities that are in the possession of an outside party. The CRA did not have any
investments nor certificates of deposit held at banks in the name of the CRA at year end.
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33
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE D – OTHER NOTES, continued
1. Risk Management, continued Deposits and Investments, continued
Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising
interest rates, the Authority’s investment policy requires that market conditions and investment
securities be analyzed to determine the maximum yield to be obtained and to minimize the
impact of rising interest rates. There were no certificates of deposit at September 30, 2015.
Credit Risk. Credit risk is the risk that the issuer or other counterparty to an investment will not
fulfill its obligations. The Authority’s investments consist of certificates of deposit and money
market funds, minimizing credit risk associated with the Authority’s investment portfolio.
Concentration of Credit Risk. The Authority’s investment policy places no limit on the amount
that may be invested in any one issuer. At September 30, 2015, the Authority’s cash balances
consisted of the following:
Financial Institution Amount
Wells Fargo $ 841,353
Foreign Currency Risk. This risk relates to adverse effects on the fair value of an investment
from changes in exchange rates. The Authority’s investments had no exposure to foreign
currency risk and the Authority held no investments denominated in foreign currency at
September 30, 2015.
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34
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE D – OTHER NOTES, continued
2. Commitments and Contingencies
Grant Commitments
The Authority has made commitments to fund the following projects:
Committed Projects Amount Estimated Due Date
Gene McCloud - 2603 S Locust $ 94,490 2016
Federation of Labor – Ziller 60,000 2016
MMY Hospitality, LLC – 2311 S Locust 56,900 2016
RIGI Hospitality, LLC – 3021 S Locust 107,000 2016
Wing Properties – 116 E Third St 68,132 2016
Wing Properties – 110-114 E Third St 167,016 2017
Bosselman Real Estate 300,000 1/3 2016 – 2018
Zoul Properties – 1201 S Locust 90,000 2016
Tower 217 – Amos Investment 198,964 ½ 2016 & 2017
$ 1,142,502
3. Interlocal Agreement
The Authority is a participant in an Interlocal Agreement within the City of Grand Island. The
purpose of the Agreement is to provide for reimbursement by the Authority to the City for certain
services provided by whomever the City Administrator shall designate as Director of the
Authority. The Authority shall reimburse to the City approximately $2,100 per month to
reimburse 20 percent of the Director’s total annual salary and benefits and 20 percent of the
Planning Secretary’s total annual salary and benefits. The Agreement is in effect for the period
October 1, 2013, through September 30, 2014. Thereafter, it will automatically renew for
successive one-year terms until terminated.
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35
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE D – OTHER NOTES, continued
4. Conduit Debt
The Authority collects TIF proceeds and pays the proceeds to financial institutions under several
conduit debt arrangements. The Authority has no obligation to make principal and interest
payments on the conduit debt except to the extent of the TIF proceeds that are collected.
Remaining Estimated Amount
Redeveloper Life to be Remitted
Bruns Pet Grooming 5 $ 35,885
Girard Vet Clinic 5 50,345
PROCON - Geddes Street 7 196,000
Southeast Crossing 6 78,530
Casey’s 8 73,288
South Pointe 8 709,430
Todd Enck 7 23,683
Pharmacy Properties 9 68,913
John Schulte 9 38,288
Ken-Ray, LLC 8 186,926
Token Properties 11 32,076
Gordman of GI 12 98,336
Baker Development 12 23,495
Stratford Plaza 12 294,104
Copper Creek 14 344,048
Chief Industries 13 75,856
Token Properties-Kimball St 13 3,991
Habitat for Humanity 13 37,853
Auto One 13 102,399
EIG 12 335,627
Token Properties-Cary St 12 70,723
Wenn 12 20,571
$ 2,900,367
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36
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE D – OTHER NOTES, continued
5. Additional TIF Agreements
On July 16, 2013, the Authority entered into a redevelopment contract with The Guarantee
Group, LLC (Redeveloper). The Redeveloper intends to purchase and develop property for a
subdivision and install all of the necessary public infrastructure to build 200+ single family
dwellings in the first phase of the project over the course of approximately 10 years from the date
of the contract. The initial sales price of the houses is limited to between $139,900 and
$145,900. The sales price may be modified over the course of the contract to accommodate
changes in prices for materials and labor. A second phase of this project, subject to a second TIF
contract, is anticipated for the remainder of the property with approximately 300 additional
dwelling units. A $4,000,000 TIF bond bearing interest of 8.0 percent was issued by the
Authority with an expiration date of December 31, 2039. The developer is responsible for
providing to the Authority by July 1 of each year the legal description of all lots with new homes
and the sales price of each house to that a “Notice of Intent to Divide Tax for Development
Project” form can be filed on the improvements with the Hall County Assessors office by August
1 of each year. TIF financing will be made available and paid toward the bond until either the
bond is paid off, the bond expires, or the allowable tax increment is no longer available.
On April 16, 2014, the Authority entered into a redevelopment contract with Tower 217 – Amos
Anson (Redeveloper). The Redeveloper intends to create additional taxable real property
valuation on the project of between $466,000 and $715,000 no later than January 1, 2016. The
Redeveloper shall pay all project costs related to the construction of the improvements. Under
terms of the agreement, the Authority will grant the Redeveloper $236,000.
On October 30, 2014, the Authority entered into a redevelopment contract with Grand Island
Joint Ventures LLC. (Redeveloper). The Redeveloper intends to rehabilitate the Grand Island
Mall on Webb Road, and add additional outlets on both the Webb Road and 281 sides of the
building. The estimated value upon completion is $21,570,000. The Redeveloper shall pay all
project costs related to the construction of the improvements. Under the terms of the agreement,
the Authority will grant the Redeveloper $5,600,000 related to the TIF and $4,000,000 related to
enhance employment area bond.
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37
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2015
NOTE D – OTHER NOTES, continued
5. Additional TIF Agreements, continued
On May 7, 2015, the Authority entered into a redevelopment contract with Pridon LLC.
(Redeveloper). The Redeveloper intends to extend utilities and build between 26 and 78
apartments for veterans on the Veteran’s Hospital Property at Capital Avenue and Broadwell
Street. The estimated value upon completion is $2,400,000. The Redeveloper shall pay all
project costs related to the construction of the improvements. Under the terms of the agreement,
the Authority will grant the Redeveloper $330,000.
On June 5, 2015, the Authority entered into a redevelopment contract with Super Market
Developers (Redeveloper). The Redeveloper intends to build a new grocery store and additional
strip retail at 720 State Street. The estimated value upon completion is $7,858,000. The
Redeveloper shall pay all project costs related to the construction of the improvements. Under
the terms of the agreement, the Authority will grant the Redeveloper $1,600,000.
On June 10, 2015, the Authority entered into a redevelopment contract with TC Enck Builders,
Inc. (Redeveloper). The Redeveloper intends to extend utilities and build a duplex at 1616 S.
Eddy Street. The estimated value upon completion is $160,000. The Redeveloper shall pay all
project costs related to the construction of the improvements. Under the terms of the agreement,
the Authority will grant the Redeveloper $38,000.
In July of 2015 the Authority approved a redevelopment contract with T&S Development
(Redeveloper). The contract was execute on November 2, 2015. The Redeveloper intends finish
office space on the second floor of their building at 312 W 3rd Street. The estimated value upon
completion is $1,136,841. The Redeveloper shall pay all project costs related to the construction
of the improvements. Under the terms of the agreement, the Authority will grant the
Redeveloper $272,788.
On September 29, 2015, the Authority entered into a redevelopment contract with Bosselman
Real Estate LLC. (Redeveloper). The Redeveloper intends to redevelop a commercial property at
1616 S. Locust as corporate office space, retail space and build a hotel on site. The estimated
value upon completion is $21,570,000. The Redeveloper shall pay all project costs related to the
construction of the improvements. Under the terms of the agreement, the Authority will grant the
Redeveloper $6,552,000.
6. Subsequent Events
Management has evaluated subsequent events through December 18, 2015, the date on which the
financial statements were available for issue.
Grand Island Regular Meeting - 1/13/2016 Page 59 / 69
REQUIRED SUPPLEMENTARY INFORMATION
Grand Island Regular Meeting - 1/13/2016 Page 60 / 69
COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
BUDGETARY COMPARISON SCHEDULE
Year ended September 30, 2015
Variance -
Budget Actual
(Original Over (Under)
and Final)Actual Final Budget
RESOURCES (INFLOWS)
Property taxes 853,245$ 685,727$ (167,518)$
TIF receipts 1,159,092 1,207,408 48,316
Grant income - 100,000 100,000
Interest income 1,000 158 (842)
Land sales 100,000 - (100,000)
Other 128,000 27,263 (100,737)
Total resources 2,241,337 2,020,556 (220,781)
CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Contract services 76,000 62,422 (13,578)
Capital outlay 200,000 80,015 (119,985)
Matching grant funds 953,000 405,637 (547,363)
Professional services 24,000 4,979 (19,021)
Printing and publishing 1,000 - (1,000)
Travel and training 1,000 - (1,000)
Other 3,550 898 (2,652)
Conduit debt payments 1,059,458 1,088,540 29,082
Debt service:
Principal payments 237,564 245,308 7,744
Interest expense 54,120 49,454 (4,666)
Bond fees - 525 525
Total charges to appropriations 2,609,692 1,937,778 (671,914)
RESOURCES OVER (UNDER)
CHARGES TO
APPROPRIATIONS (368,355)$ 82,778$ 451,133$
38
Grand Island Regular Meeting - 1/13/2016 Page 61 / 69
COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
BUDGETARY COMPARISON SCHEDULE -
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
Year ended September 30, 2015
Note A - Explanation of Differences between Budgetary Inflows and Outflows and
Accrual Basis Revenue and Expenditures
General
Fund
Sources/inflows of resources:
Actual amounts of resources (budgetary basis)
from the budgetary comparison schedule 2,020,556$
Differences - budget to accrual:
Cash to accrual adjustments 2,205
Total revenues as reported on the statement
of revenues, expenditures, and changes
in fund balance - governmental fund 2,022,761$
Uses/outflows of resources:
Actual amounts (budgetary basis) "total
charges to appropriations" from the
budgetary comparison schedule 1,937,778$
Differences - budget to accrual:
Cash to accrual adjustments 9,787
Total expenditures as reported on the statement
of revenues, expenditures, and changes
in fund balance - governmental fund 1,947,565$
39
Grand Island Regular Meeting - 1/13/2016 Page 62 / 69
SUPPLEMENTARY INFORMATION
Grand Island Regular Meeting - 1/13/2016 Page 63 / 69
Facade RSF
Improvement Walnut PROCON Limited
General & Other Housing Skagway Debt Debt
Services Projects Project Project Service Service
Accounting and auditing 4,275$ -$ -$ -$ -$ -$
Legal/other professional
services 9,929 - - - - -
Contract services 62,422 - - - - -
Miscellaneous 898 - - - - -
Grant funds - 405,637 - - - -
Capital outlay 80,015 - - - - -
Conduit debts payments - - - 760,258 - -
Principal payments 175,000 - 52,583 - 14,306 3,419
Interest expense 22,489 - 21,889 - 4,856 782
Bond fees 525 - - - - -
355,553$ 405,637$ 74,472$ 760,258$ 19,162$ 4,201$
COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
40
SCHEDULE OF EXPENDITURES - GENERAL FUND
For the Year Ended September 30, 2015
Grand Island Regular Meeting - 1/13/2016 Page 64 / 69
Bruns Wile E.PROCON -
Pet Investment Geddes St Southeast South Pointe Todd Enck John Schulte
Grooming Properties, LLC Apartments Crossing Casey's Hotel Project Construction
-$ -$ -$ -$ -$ -$ -$ -$
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
7,177 10,062 14,726 13,088 9,161 88,677 6,280 2,671
- - - - - - - -
- - - - - - - -
- - - - - - - -
7,177$ 10,062$ 14,726$ 13,088$ 9,161$ 88,677$ 6,280$ 2,671$
40
Grand Island Regular Meeting - 1/13/2016 Page 65 / 69
County Baker Stratford
Pharmacy Poplar Ken-Ray Fund Development,Plaza,
Properties Street Project #8598 Gordman Inc.LLC
Accounting and auditing -$ -$ -$ -$ -$ -$ -$
Legal/other professional
services - - - - - - -
Contract services - - - - - - -
Miscellaneous - - - - - - -
Grant funds - - - - - - -
Capital outlay - - - - - - -
Conduit debts payments 10,741 12,237 37,418 2,916 8,195 1,958 24,509
Principal payments - - - - - - -
Interest expense - - - - - - -
Bond fees - - - - - - -
10,741$ 12,237$ 37,418$ 2,916$ 8,195$ 1,958$ 24,509$
41
COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
SCHEDULE OF EXPENDITURES - GENERAL FUND, Continued
For the Year Ended September 30, 2015
Grand Island Regular Meeting - 1/13/2016 Page 66 / 69
Chief Token Token
Industries Properties Habitat Auto EIG Properties Wenn
Copper Aurora Kimball for One,Grand Cary Housing
Creek Coop Street Humanity Inc.Island Street Project Totals
-$ -$ -$ -$ -$ -$ -$ -$ 4,275$
- - - - - - - - 9,929
- - - - - - - - 62,422
- - - - - - - - 898
- - - - - - - - 405,637
- - - - - - - - 80,015
24,575 5,835 307 2,912 7,877 27,969 7,277 1,714 1,088,540
- - - - - - - - 245,308
- - - - - - - - 50,016
- - - - - - - - 525
24,575$ 5,835$ 307$ 2,912$ 7,877$ 27,969$ 7,277$ 1,714$ 1,947,565$
41
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