Pocatello Development Authority - 08/23/23 Special Meeting - included the FY24 Budget Hearing.
*Provided by P.A.G.E. volunteers due to the PDA's refusal to exercise transparency and make audio/video recordings available to the public.
Note: Typically, these meetings are held at 11 a.m. on the 3rd Wednesday of each month in City Council Chambers.
-
Established 2006 / Expires 2030 - Mayor Chase administration
-
05/17/23 Cash Balance: $343,763.28.11
-
No bonded debt.
-
Owner participation agreement (OPA) with IRG (owners of property) has nearly been completed.
-
* A future OPA is anticipated with IRG
-
Established 2007 / Expires 2030 - Mayor Chase administration
-
05/17/23 Cash Balance: $1,609,922.37
-
No bonded debt
-
No owner participation agreements currently
-
Established 2010 / Expires 2033 - Mayor Blad administration
-
05/17/23 Cash Balance: $-254.87
-
No bonded debt
-
No owner participation agreements currently.
-
Established 2019 / Expires 2039 Mayor Blad administration
-
05/17/23 Cash Balance: $347,603.19
-
No bonded debt.
-
No owner participation agreements (OPA)
Intent at establishment of the TIF was to reimburse the governmental entities who contributed to the Northgate I-15 offramp project and then reimburse the Developer (Millennial).
Approximately $3M -$4M is required for reimbursement to public entities [Pocatello Development Authority ($1,650,000); City of Pocatello ($450K); City of Chubbuck ($?); Bannock County ($1,350,000). Millennial's expenditures ($?)
PDA Performance Measurement
This comparison is only one possible way to measure the success of the PDA and doesn't take into account substantial project changes within TIF districts (i.e. North Portneuf). It calculates whether the 2022 increment anticipated to be collected in FY23 meets the projected increment contained within each TIF's feasibility report. Feasibility reports are a critical piece of TIF formation and are a strong determining factor in their approval.
Current Pocatello Tax Increment Financing (TIF) Areas
(click on the TIF for the initial document)
The purpose of the Pocatello Development Authority (PDA) is to undertake urban renewal projects in areas designated by the City of Pocatello to be deteriorating and to undertake rehabilitation, conservation, redevelopment, or a combination thereof of such area, or areas, in the interest of the public health, safety, morals or welfare of the residents of the City of Pocatello.
The Pocatello Development Authority, to the greatest extent it determines to be feasible in carrying out its stated purpose, shall afford maximum opportunity, consistent with the needs of the City of Pocatello as a whole, to rehabilitation or redevelopment of the urban renewal area by private enterprise.
A TIF area is established for local taxing bodies to make a joint investment in the development or redevelopment of an area, with the intent that any short-term gains be reinvested and leveraged so that all taxing bodies will receive larger financial gains in the future.
The funds for this investment come from future tax revenues, not otherwise expected to occur, generated by increased public and private investment in identified, underperforming, area.
Pocatello Development Authority
What is a Tax Increment Financing (TIF) Area?
PDA Taxpayer Funding
ARE PDA TAXPAYER FUNDS INSURED?
We’ve all seen and read recently what happened with Silicon Valley Bank (SVB) on March 10th– the Feds only guarantee and insure customer deposits up to $250,000. Anything over that can be LOST when banks fail.
In light of the Silicon Valley Bank (SVB) collapse, the Pocatello Development Authority (PDA) audit "note" divulges a multi-layer breakdown of fiscal oversight that should generate swift action. Yet, at the PDA's 03/15/23 meeting, during which the audit was presented and approved, not one mention of this audit "detail" was uttered.
You would think PDA Board members, entrusted with managing over $4M in taxpayer dollars, would transparently acknowledge the “custodial risk” presented in this audit report and make assurances to the public that the “oversight” will be promptly addressed. Not so. In an emailed inquiry after the meeting, we were told “there are not a lot of choices open to the PDA to eliminate the custodial risk completely, however there are a few decisions the board will need to discuss of possibly spreading the risk out to include other financial institutions.” The intent is to hold "future" discussions with the Board to address the risks.
Does this meet your expectations for a board overseeing $4M+ in taxpayer funds?
The public isn't unreasonable or hyper-critical. We just expect better of those tasked with overseeing our taxpayer funds.
PDA FY22 CAFR AUDIT:
https://pda.pocatello.gov/documents/2022%20PDA%20CAFR.pdf
See pages 15-16.
POCATELLO DEVELOPMENT AUTHORITY
NOTES TO FINANCIAL STATEMENTS
NOTE 4 - Detailed Notes on all Funds - (Continued)
A. Deposits and Investments - (Continued)
The Authority has no investments
Deposits - Custodial Credit Risk for deposits is the risk that, in the event of bank failure, the government's deposits may not be returned to it. At year-end, the Authority's carrying amount (reconciled balance reported in the financial statements) of deposits was $3,818,960 and the bank balance (balance per bank statements) was $4,184,661. Of the cash balance, $250,000 was covered by federal depository insurance at Idaho Central Credit Union. There exists a custodial risk of $3,934,661.
This is a shortened video of the 05/17/23 Pocatello Development Meeting showing discussion of investment options to address the PDA's custodial risk of their uninsured deposits - an issue brought to light in their most recent audit. No investment decisions were made at this meeting.
Misinformation concerning the Local Government Investment Pool (LGIP) was shared with the PDA Board by a member. P.A.G.E. has ensured the information has been corrected with the Board.