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PHONE: 315.435.3770 FAX: 315.435.3669 ONGOVED.COM
Audit Committee March 9, 2021 8:00 A.M. Call to Order Meeting of the Audit Committee 1. Approval of the Minutes of the February, 9, 2021 Meeting of the Audit Committee
Committee Action Requested: A Resolution of the Committee recommending to the Board approval of the 2020 Audit of the Agency.
Representative: Mike Lisson, Grossman St. Amour Adjourn
PHONE: 315.435.3770 FAX: 315.435.3669 ONGOVED.COM
Audit Committee March 9, 2021 8:00 A.M. Call to Order Meeting of the Audit Committee 1. Approval of the Minutes of the February, 9, 2021 Meeting of the Audit Committee
Committee Action Requested: A Resolution of the Committee recommending to the Board approval of the 2020 Audit of the Agency.
Representative: Mike Lisson, Grossman St. Amour Adjourn
Onondaga County Industrial Development Agency Audit Committee Meeting Minutes February 9, 2021 An Audit Committee meeting of the Onondaga County Industrial Development Agency was held on Tuesday, February 9, 2021 via Zoom Teleconference.
Chairperson Janice Herzog called the meeting to order at 8:02 am with the following:
PRESENT:
Janice Herzog Patrick Hogan
ABSENT:
Susan Stanczyk
ALSO PRESENT:
Robert Petrovich, Executive Director Nancy Lowery, Secretary Nate Stevens, Treasurer Karen Doster, Recording Secretary, Agency Jeff Davis Barclay Damon Law Firm Amanda Mirabito, Barclay Damon Law Firm Mike Lisson, Grossman St Amour PLLC Victor Ianno, Board Member Kevin Ryan, Board Member Fanny Villarreal, Board Member Robert Murray, Timothy Pecci, Glenn Mackay, OYA Camillus A & B LLC Jeremy Speich, Harris Beach Law Firm (Patrick Hogan shared information as to how the meeting will be conducted in light of COVID-19.) APPROVAL OF AUDIT COMMITTEE MEETING MINUTES – DECEMBER 8, 2020 Upon a motion by Patrick Hogan, seconded by Janice Herzog, the OCIDA Audit Committee approved the minutes of the December 8, 2020 meeting. Motion was carried.
Onondaga County Industrial Development Agency Audit Committee Meeting Minutes February 9, 2021 An Audit Committee meeting of the Onondaga County Industrial Development Agency was held on Tuesday, February 9, 2021 via Zoom Teleconference.
Chairperson Janice Herzog called the meeting to order at 8:02 am with the following:
PRESENT:
Janice Herzog Patrick Hogan
ABSENT:
Susan Stanczyk
ALSO PRESENT:
Robert Petrovich, Executive Director Nancy Lowery, Secretary Nate Stevens, Treasurer Karen Doster, Recording Secretary, Agency Jeff Davis Barclay Damon Law Firm Amanda Mirabito, Barclay Damon Law Firm Mike Lisson, Grossman St Amour PLLC Victor Ianno, Board Member Kevin Ryan, Board Member Fanny Villarreal, Board Member Robert Murray, Timothy Pecci, Glenn Mackay, OYA Camillus A & B LLC Jeremy Speich, Harris Beach Law Firm (Patrick Hogan shared information as to how the meeting will be conducted in light of COVID-19.) APPROVAL OF AUDIT COMMITTEE MEETING MINUTES – DECEMBER 8, 2020 Upon a motion by Patrick Hogan, seconded by Janice Herzog, the OCIDA Audit Committee approved the minutes of the December 8, 2020 meeting. Motion was carried.
Mike Lisson stated he submitted the Audit presentation in advance of this meeting. He stated from an auditing standpoint the procedures that need to be done this year are very similar to past years. He stated 1 they will do a lot of substantive type tests in controls, process, cash and other areas. He stated the biggest change this year from an auditing standpoint is they have to adopt a Yellow Book Audit Standards 2018 and is basically the professional standards they follow for the Board’s audits. He stated there is not a lot of major changes in how they are going to approach the audit but there is some documentation they have to do behind the scenes that further support their audit opinion. He stated the last two slides include new accounting and auditing things that are applicable to OCIDA but every single accounting standard and audit standard that was applicable was pushed off a full year due to COVID. He stated the effective date has been pushed off to 2021 for OCIDA. He stated there will be a lot of changes next year in how they
present including the communications and the audit opinion. He stated it is great to be reappointed as
auditors going forward and happy to be back again. He stated he is looking at a March 1 completion and communicate with the Board shortly after
Mike Lisson stated he submitted the Audit presentation in advance of this meeting. He stated from an auditing standpoint the procedures that need to be done this year are very similar to past years. He stated 1 they will do a lot of substantive type tests in controls, process, cash and other areas. He stated the biggest change this year from an auditing standpoint is they have to adopt a Yellow Book Audit Standards 2018 and is basically the professional standards they follow for the Board’s audits. He stated there is not a lot of major changes in how they are going to approach the audit but there is some documentation they have to do behind the scenes that further support their audit opinion. He stated the last two slides include new accounting and auditing things that are applicable to OCIDA but every single accounting standard and audit standard that was applicable was pushed off a full year due to COVID. He stated the effective date has been pushed off to 2021 for OCIDA. He stated there will be a lot of changes next year in how they
present including the communications and the audit opinion. He stated it is great to be reappointed as
auditors going forward and happy to be back again. He stated he is looking at a March 1 completion and communicate with the Board shortly after Pat Hogan stated the long standing commitment of Grossman St. Amour to OCIDA is great.
Upon a motion by Patrick Hogan, seconded by Janice Herzog, the OCIDA Audit Committee adjourned the meeting at 8:07 am. Motion was carried.
____________________________________ Nancy Lowery, Secretary 2 Pat Hogan stated the long standing commitment of Grossman St. Amour to OCIDA is great.
Upon a motion by Patrick Hogan, seconded by Janice Herzog, the OCIDA Audit Committee adjourned the meeting at 8:07 am. Motion was carried.
____________________________________ Nancy Lowery, Secretary 2
(A DISCRETELY PRESENTED COMPONENT
(A DISCRETELY PRESENTED COMPONENT
December 31, 2020 and 2019
December 31, 2020 and 2019
(A Discretely Presented Component Unit of the County of Onondaga, New York) Table of Contents Independent Auditor’s Report 1‐3 Management’s Discussion and Analysis (Unaudited) 4‐6 Financial Statements:
Statements of Net Position ‐ December 31, 2020 and 2019 7 Statements of Revenues, Expenses and Changes in Net Position ‐ For the Years Ended December 31, 2020 and 2019 8 Statements of Cash Flows ‐ For the Years Ended December 31, 2020 and 2019 9‐10 Notes to Financial Statements 11‐19 Supplemental Schedule of Revenue Bonds and Other Bonds (Conduit Debt Obligations) 20‐22 INDEPENDENT AUDITOR’S REPORT The Board of Onondaga County Industrial Development Agency Report on the Financial Statements
(A Discretely Presented Component Unit of the County of Onondaga, New York) Table of Contents Independent Auditor’s Report 1‐3 Management’s Discussion and Analysis (Unaudited) 4‐6 Financial Statements:
Statements of Net Position ‐ December 31, 2020 and 2019 7 Statements of Revenues, Expenses and Changes in Net Position ‐ For the Years Ended December 31, 2020 and 2019 8 Statements of Cash Flows ‐ For the Years Ended December 31, 2020 and 2019 9‐10 Notes to Financial Statements 11‐19 Supplemental Schedule of Revenue Bonds and Other Bonds (Conduit Debt Obligations) 20‐22 INDEPENDENT AUDITOR’S REPORT The Board of Onondaga County Industrial Development Agency Report on the Financial Statements We have audited the accompanying financial statements of the Onondaga County Industrial Development Agency (the Agency), a component unit of the County of Onondaga, New York (the County), as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the Agency’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements The Agency's 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.
Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
We have audited the accompanying financial statements of the Onondaga County Industrial Development Agency (the Agency), a component unit of the County of Onondaga, New York (the County), as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the Agency’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements The Agency's 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.
Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express 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 opinion.
Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Agency, as of December 31, 2020, and the changes in its financial position and its cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Report On Required Supplementary Information An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express 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 opinion.
Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Agency, as of December 31, 2020, and the changes in its financial position and its cash flows thereof for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Report On Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis 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 Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis 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 an opinion on the financial statements that collectively comprise the Agency's basic financial statements. The supplemental schedule of revenue bonds and other bonds (conduit debt obligations), as required by New York State General Municipal Law §859 (1) (b), are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplemental schedule of revenue bonds and other bonds (conduit debt obligations) is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental schedule of revenue bonds and other bonds (conduit debt obligations) is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Agency's basic financial statements. The supplemental schedule of revenue bonds and other bonds (conduit debt obligations), as required by New York State General Municipal Law §859 (1) (b), are presented for purposes of additional analysis and are not a required part of the basic financial statements. The supplemental schedule of revenue bonds and other bonds (conduit debt obligations) is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplemental schedule of revenue bonds and other bonds (conduit debt obligations) is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 9, 2021, on our consideration of the Agency’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulation, contracts, and grant agreements and other matters. The purpose of that report is 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 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 the Agency’s internal control over financial reporting and compliance.
Syracuse, New York March 9, 2021 In accordance with Government Auditing Standards, we have also issued our report dated March 9, 2021, on our consideration of the Agency’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulation, contracts, and grant agreements and other matters. The purpose of that report is 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 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 the Agency’s internal control over financial reporting and compliance.
Syracuse, New York March 9, 2021
(A Discretely Presented Component Unit of the County of Onondaga, New York)
(A Discretely Presented Component Unit of the County of Onondaga, New York)
This section of the Onondaga County Industrial Development Agency’s (the Agency), a discretely presented component unit of Onondaga County, New York (the County), annual financial report presents our discussion and analysis of the Agency’s financial performance during the year ended December 31, 2020. It should be read in conjunction with the Agency’s financial statements and accompanying notes.
This section of the Onondaga County Industrial Development Agency’s (the Agency), a discretely presented component unit of Onondaga County, New York (the County), annual financial report presents our discussion and analysis of the Agency’s financial performance during the year ended December 31, 2020. It should be read in conjunction with the Agency’s financial statements and accompanying notes.
The annual financial report of the Agency consists of two parts: Management’s Discussion and Analysis (this section) and the basic financial statements and footnotes. The Agency is a self supporting entity. The accounts are recorded in accordance with a proprietary fund type and consist of an enterprise fund. Proprietary fund type operating statements present increases and decreases in net position. The financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. The Agency does not maintain separate fund accounts.
Condensed Comparative Financial Information
The annual financial report of the Agency consists of two parts: Management’s Discussion and Analysis (this section) and the basic financial statements and footnotes. The Agency is a self supporting entity. The accounts are recorded in accordance with a proprietary fund type and consist of an enterprise fund. Proprietary fund type operating statements present increases and decreases in net position. The financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. The Agency does not maintain separate fund accounts.
Condensed Comparative Financial Information Year Ended December 31,
Cash and cash equivalents $ 5,069,972 $ 2,206,148 $ 2,300,977 Receivables ‐ Onondaga County ‐ 1,336,998 ‐ Accounts receivable 269,149 833,971 753,472 Grant receivables ‐ 268,734 268,734 Notes receivable ‐ ‐ 2,083 Capital assets 4,502,156 4,518,424 3,634,691 Total assets 9,841,277 9,164,275 6,959,957 Current liabilities 386,715 564,045 456,255 Total liabilities 386,715 564,045 456,255 Net Position:
Net investment in capital assets 4,502,156 4,518,424 3,634,691 Unrestricted 4,952,406 4,081,806 2,869,011 Year Ended December 31,
Cash and cash equivalents $ 5,069,972 $ 2,206,148 $ 2,300,977 Receivables ‐ Onondaga County ‐ 1,336,998 ‐ Accounts receivable 269,149 833,971 753,472 Grant receivables ‐ 268,734 268,734 Notes receivable ‐ ‐ 2,083 Capital assets 4,502,156 4,518,424 3,634,691 Total assets 9,841,277 9,164,275 6,959,957 Current liabilities 386,715 564,045 456,255 Total liabilities 386,715 564,045 456,255 Net Position:
Net investment in capital assets 4,502,156 4,518,424 3,634,691 Unrestricted 4,952,406 4,081,806 2,869,011 Total net position $ 9,454,562 $ 8,600,230 $ 6,503,702 ‐4‐ Total net position $ 9,454,562 $ 8,600,230 $ 6,503,702 ‐4‐
(A Discretely Presented Component Unit of the County of Onondaga, New York)
(A Discretely Presented Component Unit of the County of Onondaga, New York)
FINANCIAL STATEMENTS (continued) Condensed Comparative Financial Information (continued) Year Ended December 31,
Operating revenues $ 2,803,839 $ 3,550,992 $ 1,782,767 Operating expenses 1,951,084 1,462,500 2,827,856 Operating income (loss) 852,755 2,088,492 (1,045,089) Other revenue 1,577 8,036 9,507 Change in net position 854,332 2,096,528 (1,035,582) Net position ‐ beginning of year 8,600,230 6,503,702 7,539,284 Net position ‐ end of year $ 9,454,562 $ 8,600,230 $ 6,503,702 Change in financial categories between the year ended December 31, 2020 and the year ended December 31, 2019 include the following:
FINANCIAL STATEMENTS (continued) Condensed Comparative Financial Information (continued) Year Ended December 31,
Operating revenues $ 2,803,839 $ 3,550,992 $ 1,782,767 Operating expenses 1,951,084 1,462,500 2,827,856 Operating income (loss) 852,755 2,088,492 (1,045,089) Other revenue 1,577 8,036 9,507 Change in net position 854,332 2,096,528 (1,035,582) Net position ‐ beginning of year 8,600,230 6,503,702 7,539,284 Net position ‐ end of year $ 9,454,562 $ 8,600,230 $ 6,503,702 Change in financial categories between the year ended December 31, 2020 and the year ended December 31, 2019 include the following:
The Agency’s total net position increased $854,332. Operating revenues exceeded operating expenses by $852,755 in the current year, a net decrease of $1,235,737 from prior year primarily due to one‐time reimbursement from Onondaga County received in 2019 for $1,336,998 and from expenditures related to the White Pine Commerce Park which increased $494,447 compared to 2019.
Total operating cash increased $2,067,195 due to current operations, which included an increase of cash from Agency fees of $1,182,664 and $1,336,998 from Onondaga County. The Agency spent $458,681 more in cash on operating expenses compared to the previous year, primarily related to the White Pine Commerce Park site.
Operating Revenues decreased $747,153 in 2020 compared to an increase of $1,768,225 in 2019. This was primarily due to a $1,336,998 reimbursement from Onondaga County in 2019 which was based on a past agreement with Onondaga County. Overall Agency fees increased net $537,343 compared to 2019. Significant Agency fees included $1,625,000 from TC Syracuse Development Association; $356,713 from Ultra Dairy LLC, $316,115 from BWI Hotel Acquisitions and a write off of $488,642 from the Morgan Baldwinsville project which was not undertaken by the project owner.
The Agency’s total net position increased $854,332. Operating revenues exceeded operating expenses by $852,755 in the current year, a net decrease of $1,235,737 from prior year primarily due to one‐time reimbursement from Onondaga County received in 2019 for $1,336,998 and from expenditures related to the White Pine Commerce Park which increased $494,447 compared to 2019.
Total operating cash increased $2,067,195 due to current operations, which included an increase of cash from Agency fees of $1,182,664 and $1,336,998 from Onondaga County. The Agency spent $458,681 more in cash on operating expenses compared to the previous year, primarily related to the White Pine Commerce Park site.
Operating Revenues decreased $747,153 in 2020 compared to an increase of $1,768,225 in 2019. This was primarily due to a $1,336,998 reimbursement from Onondaga County in 2019 which was based on a past agreement with Onondaga County. Overall Agency fees increased net $537,343 compared to 2019. Significant Agency fees included $1,625,000 from TC Syracuse Development Association; $356,713 from Ultra Dairy LLC, $316,115 from BWI Hotel Acquisitions and a write off of $488,642 from the Morgan Baldwinsville project which was not undertaken by the project owner.
Operating Expenses increased $488,584 in 2020. Contractual support services with Onondaga County decreased $242,203 while development costs for the White Pine Commerce Park increased $489,332 compared to the previous year. In addition, new financial assistance grants were made in 2020 totaling $225,139 to help alleviate the economic damage that small businesses experienced as a result of the COVID‐ 19 pandemic.
‐5‐ Operating Expenses increased $488,584 in 2020. Contractual support services with Onondaga County decreased $242,203 while development costs for the White Pine Commerce Park increased $489,332 compared to the previous year. In addition, new financial assistance grants were made in 2020 totaling $225,139 to help alleviate the economic damage that small businesses experienced as a result of the COVID‐ 19 pandemic.
‐5‐
(A Discretely Presented Component Unit of the County of Onondaga, New York)
(A Discretely Presented Component Unit of the County of Onondaga, New York)
Analysis of Overall Financial Position and Results of Operations The Agency is engaged in activities to support economic growth in Onondaga County, including job creation and retention, and increasing the net wealth of the County. The Agency does not receive any general appropriations from local, county or state government to support its operations. The Agency collects revenue for its operating purposes from the issuance of bonds and straight lease transactions and from interest on investments. In the year ended December 31, 2020, the Agency received $2,913,578 from agency and other fees, an increase of $1,025,985 from the prior year.
The Agency’s staff services are provided by the Onondaga County Office of Economic Development. The Agency compensates the County for these services based on budgeted expenses; in 2020 the expenses totaled $413,546. Capital Asset Administration
Analysis of Overall Financial Position and Results of Operations The Agency is engaged in activities to support economic growth in Onondaga County, including job creation and retention, and increasing the net wealth of the County. The Agency does not receive any general appropriations from local, county or state government to support its operations. The Agency collects revenue for its operating purposes from the issuance of bonds and straight lease transactions and from interest on investments. In the year ended December 31, 2020, the Agency received $2,913,578 from agency and other fees, an increase of $1,025,985 from the prior year.
The Agency’s staff services are provided by the Onondaga County Office of Economic Development. The Agency compensates the County for these services based on budgeted expenses; in 2020 the expenses totaled $413,546. Capital Asset Administration As of December 31, 2020, the Agency’s investment in capital assets was $4,502,156, net of depreciation. The Agency’s capital assets include the White Pine Commerce Park (WPCP, formerly known as the Clay Business Park), land, buildings and equipment. WPCP is a 339 acre undeveloped industrial park in the Town of Clay. The Agency acquired the land in the park for the purpose of attracting a large commercial/industrial project in the Town of Clay. Additionally, in 2015 the Agency acquired property on North Salina Street, in the City of Syracuse, and is leasing the premises to Onondaga Community College to house a workforce development training program. Finally, the Agency continued to invest in the rehabilitation of the real property at 800 Hiawatha Blvd, also in the City of Syracuse. Contacting the Agency’s Financial Management This financial report is designed to provide Onondaga County citizens and taxpayers, and the clients of the Agency, with a general overview of the Agency’s finances. If you have questions about this report or need additional financial information, contact the Executive Director, Onondaga County Industrial Development Agency, 333 West Washington Street, Suite 130, Syracuse, New York 13202.
‐6‐ As of December 31, 2020, the Agency’s investment in capital assets was $4,502,156, net of depreciation. The Agency’s capital assets include the White Pine Commerce Park (WPCP, formerly known as the Clay Business Park), land, buildings and equipment. WPCP is a 339 acre undeveloped industrial park in the Town of Clay. The Agency acquired the land in the park for the purpose of attracting a large commercial/industrial project in the Town of Clay. Additionally, in 2015 the Agency acquired property on North Salina Street, in the City of Syracuse, and is leasing the premises to Onondaga Community College to house a workforce development training program. Finally, the Agency continued to invest in the rehabilitation of the real property at 800 Hiawatha Blvd, also in the City of Syracuse. Contacting the Agency’s Financial Management This financial report is designed to provide Onondaga County citizens and taxpayers, and the clients of the Agency, with a general overview of the Agency’s finances. If you have questions about this report or need additional financial information, contact the Executive Director, Onondaga County Industrial Development Agency, 333 West Washington Street, Suite 130, Syracuse, New York 13202.
‐6‐
(A Discretely Presented Component Unit of the County of Onondaga, New York) Statements of Net Position
(A Discretely Presented Component Unit of the County of Onondaga, New York) Statements of Net Position
Current Assets Cash and cash equivalents ‐ unrestricted $ 5,069,972 2,206,148 Receivables ‐ Onondaga County ‐ 1,336,998 Receivables ‐ agency fees 47,125 611,947 Grant receivables ‐ 268,734 Total current assets 5,117,097 4,423,827 Non‐Current Assets Receivables ‐ other agency fees 222,024 222,024 Capital assets, net 4,502,156 4,518,424 Total noncurrent assets 4,724,180 4,740,448 Total assets $ 9,841,277 $ 9,164,275 LIABILITIES and NET POSITION
Current Assets Cash and cash equivalents ‐ unrestricted $ 5,069,972 2,206,148 Receivables ‐ Onondaga County ‐ 1,336,998 Receivables ‐ agency fees 47,125 611,947 Grant receivables ‐ 268,734 Total current assets 5,117,097 4,423,827 Non‐Current Assets Receivables ‐ other agency fees 222,024 222,024 Capital assets, net 4,502,156 4,518,424 Total noncurrent assets 4,724,180 4,740,448 Total assets $ 9,841,277 $ 9,164,275 LIABILITIES and NET POSITION Current Liabilities Accounts payable $ 252,875 $ 56,193 Due to Onondaga County ‐ 312,981 Due to other governments 108,840 194,871 Deposits 25,000 ‐ Total liabilities 386,715 564,045 Net investment in capital assets 4,502,156 4,518,424 Unrestricted Net Position 4,952,406 4,081,806 Total net position 9,454,562 8,600,230 $ 9,841,277 $ 9,164,275 The accompanying notes are an integral part of these financial statements ‐7‐ Current Liabilities Accounts payable $ 252,875 $ 56,193 Due to Onondaga County ‐ 312,981 Due to other governments 108,840 194,871 Deposits 25,000 ‐ Total liabilities 386,715 564,045 Net investment in capital assets 4,502,156 4,518,424 Unrestricted Net Position 4,952,406 4,081,806 Total net position 9,454,562 8,600,230 $ 9,841,277 $ 9,164,275 The accompanying notes are an integral part of these financial statements ‐7‐
(A Discretely Presented Component Unit of the County of Onondaga, New York) Statements of Revenues, Expenses and Changes in Net Position Year Ended December 31,
Operating Revenue:
Agency and other fees $ 2,424,936 1,887,593 Reimbursement ‐ Onondaga County ‐ 1,336,998 Pass‐through income 120,340 2,910 Rent income 11,000 13,750 Grant revenue 241,225 130,119 Other income 6,338 179,622 Total operating revenues 2,803,839 3,550,992
(A Discretely Presented Component Unit of the County of Onondaga, New York) Statements of Revenues, Expenses and Changes in Net Position Year Ended December 31,
Operating Revenue:
Agency and other fees $ 2,424,936 1,887,593 Reimbursement ‐ Onondaga County ‐ 1,336,998 Pass‐through income 120,340 2,910 Rent income 11,000 13,750 Grant revenue 241,225 130,119 Other income 6,338 179,622 Total operating revenues 2,803,839 3,550,992 Operating Expenses:
Contractual support services ‐ Onondaga County 413,546 655,749 General and administrative 330,589 278,994 Development costs 501,806 235,393 Financial assistance grants 225,139 ‐ Service contracts ‐ 12,500 Pass‐through expense 120,340 2,910 Depreciation expense 16,268 16,267 Professional fees 329,264 240,980 Other expenses 6,874 5,703 Seminars and meetings 7,258 14,004 Total operating expenses 1,951,084 1,462,500 Operating Income 852,755 2,088,492 Non‐Operating Income:
Interest income 1,577 8,036 Operating Expenses:
Contractual support services ‐ Onondaga County 413,546 655,749 General and administrative 330,589 278,994 Development costs 501,806 235,393 Financial assistance grants 225,139 ‐ Service contracts ‐ 12,500 Pass‐through expense 120,340 2,910 Depreciation expense 16,268 16,267 Professional fees 329,264 240,980 Other expenses 6,874 5,703 Seminars and meetings 7,258 14,004 Total operating expenses 1,951,084 1,462,500 Operating Income 852,755 2,088,492 Non‐Operating Income:
Interest income 1,577 8,036 Change in Net Position 854,332 2,096,528 Net Position ‐ beginning of the year 8,600,230 6,503,702 Net Position ‐ end of year $ 9,454,562 $ 8,600,230 The accompanying notes are an integral part of these financial statements ‐8‐ Change in Net Position 854,332 2,096,528 Net Position ‐ beginning of the year 8,600,230 6,503,702 Net Position ‐ end of year $ 9,454,562 $ 8,600,230 The accompanying notes are an integral part of these financial statements ‐8‐
(A Discretely Presented Component Unit of the County of Onondaga, New York) Statements of Cash Flows Years Ended December 31,
Cash Flows from Operating Activities Cash received for agency and other fees $ 2,989,758 $ 1,807,094 Cash received for grants 509,959 130,119 Cash received for rent and other fees 17,338 193,372 Cash received and due to other governments 1,250,966 111,560 Cash received for deposit 25,000 ‐ Cash paid for economic development (457,628) (235,393) Cash paid for service contracts ‐ (12,500) Cash paid for contractual support services (726,527) (655,749) Cash payments for professional services (190,752) (237,590) Cash payments for general and administrative expenses (345,449) (286,334) Cash payment for financial assistance grants (196,287) ‐ Cash payments for other operating expenses (6,873) (5,703) Cash paid for seminars and meetings (7,258) (13,824) Net cash flows from operating activities 2,862,247 795,052 Cash Flows from Capital and Related Financing Activities Purchases of capital assets ‐ (900,000) Net cash flows from capital and related financing activities ‐ (900,000) Cash Flows from Investing Activities Net change in notes receivable ‐ 2,083 Net cash flows from investing activities ‐ 2,083 Cash Flows from Noncapital Financing Activities Net cash received for interest on notes outstanding 1,577 8,036 Net cash flows from financing activities 1,577 8,036 Change in Cash and Cash Equivalents 2,863,824 (94,829) Cash and Cash Equivalents ‐ beginning of year 2,206,148 2,300,977 Cash and Cash Equivalents ‐ end of year $ 5,069,972 $ 2,206,148
(A Discretely Presented Component Unit of the County of Onondaga, New York) Statements of Cash Flows Years Ended December 31,
Cash Flows from Operating Activities Cash received for agency and other fees $ 2,989,758 $ 1,807,094 Cash received for grants 509,959 130,119 Cash received for rent and other fees 17,338 193,372 Cash received and due to other governments 1,250,966 111,560 Cash received for deposit 25,000 ‐ Cash paid for economic development (457,628) (235,393) Cash paid for service contracts ‐ (12,500) Cash paid for contractual support services (726,527) (655,749) Cash payments for professional services (190,752) (237,590) Cash payments for general and administrative expenses (345,449) (286,334) Cash payment for financial assistance grants (196,287) ‐ Cash payments for other operating expenses (6,873) (5,703) Cash paid for seminars and meetings (7,258) (13,824) Net cash flows from operating activities 2,862,247 795,052 Cash Flows from Capital and Related Financing Activities Purchases of capital assets ‐ (900,000) Net cash flows from capital and related financing activities ‐ (900,000) Cash Flows from Investing Activities Net change in notes receivable ‐ 2,083 Net cash flows from investing activities ‐ 2,083 Cash Flows from Noncapital Financing Activities Net cash received for interest on notes outstanding 1,577 8,036 Net cash flows from financing activities 1,577 8,036 Change in Cash and Cash Equivalents 2,863,824 (94,829) Cash and Cash Equivalents ‐ beginning of year 2,206,148 2,300,977 Cash and Cash Equivalents ‐ end of year $ 5,069,972 $ 2,206,148 The accompanying notes are an integral part of these financial statements ‐9‐ The accompanying notes are an integral part of these financial statements ‐9‐
(A Discretely Presented Component Unit of the County of Onondaga, New York) Statements of Cash Flows (continued) Years Ended December 31,
(A Discretely Presented Component Unit of the County of Onondaga, New York) Statements of Cash Flows (continued) Years Ended December 31,
Reconciliation of Operating Income to Net Cash Flows From Operating Activities: $ 852,755 $ 2,088,492 Operating Income Adjustment to reconcile operating income to net cash flow from operating activities:
Depreciation 16,268 16,267 Agency fee write off 488,642 ‐ Changes in:
Accounts receivable 76,180 (80,499) Receivables ‐ Onondaga County 1,336,998 (1,336,998) Grant receivable 268,734 ‐ Accounts payable 196,682 (37,494) Due to Onondaga County (312,981) 33,724 Due to other governments (86,031) 111,560 Deposits 25,000 ‐ Net cash flows from operating activities $ 2,862,247 $ 795,052 Reconciliation of Operating Income to Net Cash Flows From Operating Activities: $ 852,755 $ 2,088,492 Operating Income Adjustment to reconcile operating income to net cash flow from operating activities:
Depreciation 16,268 16,267 Agency fee write off 488,642 ‐ Changes in:
Accounts receivable 76,180 (80,499) Receivables ‐ Onondaga County 1,336,998 (1,336,998) Grant receivable 268,734 ‐ Accounts payable 196,682 (37,494) Due to Onondaga County (312,981) 33,724 Due to other governments (86,031) 111,560 Deposits 25,000 ‐ Net cash flows from operating activities $ 2,862,247 $ 795,052 The accompanying notes are an integral part of these financial statements ‐ 10 ‐ The accompanying notes are an integral part of these financial statements ‐ 10 ‐
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
The New York State Industrial Development Agency Act of 1969 provided for the use of industrial revenue bond financing for the expansion and growth of industry in New York State. The Onondaga County Industrial Development Agency (the Agency) was created in accordance with the provisions of this Act in 1970 by a resolution passed by the County of Onondaga, New York (the County) Legislature.
The Agency was formed to promote and develop the economic growth of the County and to assist in attracting industry to the County through bond and sale/leaseback financing programs and other activities. The Agency created under this Act is a corporate governmental agency constituting a public benefit corporation. The County Legislature appoints the entire governing board and there is a potential for the County to impose its will on the Agency, and as such, the Agency is a discretely presented component unit of the County based on the criteria set forth by the Governmental Accounting Standards Board (GASB).
Measurement Focus and Basis of Accounting
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
The New York State Industrial Development Agency Act of 1969 provided for the use of industrial revenue bond financing for the expansion and growth of industry in New York State. The Onondaga County Industrial Development Agency (the Agency) was created in accordance with the provisions of this Act in 1970 by a resolution passed by the County of Onondaga, New York (the County) Legislature.
The Agency was formed to promote and develop the economic growth of the County and to assist in attracting industry to the County through bond and sale/leaseback financing programs and other activities. The Agency created under this Act is a corporate governmental agency constituting a public benefit corporation. The County Legislature appoints the entire governing board and there is a potential for the County to impose its will on the Agency, and as such, the Agency is a discretely presented component unit of the County based on the criteria set forth by the Governmental Accounting Standards Board (GASB).
Measurement Focus and Basis of Accounting The Agency operates as a proprietary fund. Proprietary funds utilize an “economic resources” measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position, financial position, and cash flows. All assets and liabilities (whether current or noncurrent) and deferred inflows and outflows associated with their activities are reported. Fund equity is classified as net position.
The Agency utilizes 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 an economic asset is used.
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 these estimates.
Income Tax Status The Agency operates as a proprietary fund. Proprietary funds utilize an “economic resources” measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position, financial position, and cash flows. All assets and liabilities (whether current or noncurrent) and deferred inflows and outflows associated with their activities are reported. Fund equity is classified as net position.
The Agency utilizes 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 an economic asset is used.
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 these estimates.
Income Tax Status The Agency is a governmental corporation, exempt from federal and state income taxes. New York State Public Authorities Law, Title 10, Section 2975‐A established a cost recovery of central governmental services to various public authorities. On November 1 of each year, the Director of the Division of Budget determines the assessment amount owed under this section by each industrial development agency in New York State. ‐ 11 ‐ The Agency is a governmental corporation, exempt from federal and state income taxes. New York State Public Authorities Law, Title 10, Section 2975‐A established a cost recovery of central governmental services to various public authorities. On November 1 of each year, the Director of the Division of Budget determines the assessment amount owed under this section by each industrial development agency in New York State. ‐ 11 ‐
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
Cash and Cash Equivalents Cash and cash equivalents consist of cash held in checking and money market accounts.
Accounts Receivable Accounts receivable are stated at their outstanding balances. The Agency considers all accounts receivable to be fully collectible. If collection becomes doubtful, the Agency will either set up an allowance for doubtful accounts or if deemed completely uncollectible, the accounts will be charged against income in the current period. Unpaid balances remaining after the stated payment terms are considered past due. Recoveries of previously charged off accounts are recorded when received.
Management did not believe an allowance for doubtful accounts was necessary at December 31, 2020 and 2019.
Capital Assets Capital asset purchases are recorded at historical cost or fair market value at the date of acquisition. Depreciation expense is recorded on a straight‐line basis over the assets’ estimated useful life of 5 to 39 years. The Agency’s policy is to capitalize all additions greater than $1,000 with a useful life of more than 5 years. Pollution Remediation Obligations
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
Cash and Cash Equivalents Cash and cash equivalents consist of cash held in checking and money market accounts.
Accounts Receivable Accounts receivable are stated at their outstanding balances. The Agency considers all accounts receivable to be fully collectible. If collection becomes doubtful, the Agency will either set up an allowance for doubtful accounts or if deemed completely uncollectible, the accounts will be charged against income in the current period. Unpaid balances remaining after the stated payment terms are considered past due. Recoveries of previously charged off accounts are recorded when received.
Management did not believe an allowance for doubtful accounts was necessary at December 31, 2020 and 2019.
Capital Assets Capital asset purchases are recorded at historical cost or fair market value at the date of acquisition. Depreciation expense is recorded on a straight‐line basis over the assets’ estimated useful life of 5 to 39 years. The Agency’s policy is to capitalize all additions greater than $1,000 with a useful life of more than 5 years. Pollution Remediation Obligations Pollution remediation obligation are obligations to address the current or potential detrimental effects of existing pollution by participating in pollution remediation activities. Obligations to clean up spills of hazardous wastes or hazardous substances and obligations to remove contamination such as asbestos are pollution remediation obligations. Pollution remediation activities may include the following: (1) pre‐cleanup activities, such as site assessments and site investigations, (2) cleanup activities, (3) government oversight and enforcement‐related activities and (4) operation and maintenance of the remedy, including postremediation monitoring. Pollution remediation outlays including outlays for property, plant and equipment are expensed when a liability is incurred. The Agency will capitalize certain pollution remediation outlays for properties for which it anticipates a future sale. The Agency will only capitalize amounts that would result in the carrying amount of the property to not exceed its estimated fair value upon completion of the remediation. The Agency currently has a parcel of land with known pollution and is currently performing various remediation activities. The carrying amount of this parcel of land is $604,840 as of December 31, 2020 and 2019.
‐ 12 ‐ Pollution remediation obligation are obligations to address the current or potential detrimental effects of existing pollution by participating in pollution remediation activities. Obligations to clean up spills of hazardous wastes or hazardous substances and obligations to remove contamination such as asbestos are pollution remediation obligations. Pollution remediation activities may include the following: (1) pre‐cleanup activities, such as site assessments and site investigations, (2) cleanup activities, (3) government oversight and enforcement‐related activities and (4) operation and maintenance of the remedy, including postremediation monitoring. Pollution remediation outlays including outlays for property, plant and equipment are expensed when a liability is incurred. The Agency will capitalize certain pollution remediation outlays for properties for which it anticipates a future sale. The Agency will only capitalize amounts that would result in the carrying amount of the property to not exceed its estimated fair value upon completion of the remediation. The Agency currently has a parcel of land with known pollution and is currently performing various remediation activities. The carrying amount of this parcel of land is $604,840 as of December 31, 2020 and 2019.
‐ 12 ‐
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
Operating Revenues and Non‐operating Revenues The Statements of Revenues, Expenses, and Changes in Net Position distinguishes between operating and non‐operating revenues. Operating revenues, such as fee and rental income, result from exchange transactions associated with the principal activities of the Agency. Exchange transactions are those in which each party to the transaction receives or gives up essentially equal values. Non‐operating revenues arise from exchange transactions not associated with the Agency’s principal activities and from all non‐exchange transactions.
Revenue Recognition Agency and other fee revenue are recognized by the Agency at the date of closing when the related bonds are issued. Interest income is recorded when earned.
Net Position GASB requires the classification of net position into three components. These classifications are displayed in three components below:
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
Operating Revenues and Non‐operating Revenues The Statements of Revenues, Expenses, and Changes in Net Position distinguishes between operating and non‐operating revenues. Operating revenues, such as fee and rental income, result from exchange transactions associated with the principal activities of the Agency. Exchange transactions are those in which each party to the transaction receives or gives up essentially equal values. Non‐operating revenues arise from exchange transactions not associated with the Agency’s principal activities and from all non‐exchange transactions.
Revenue Recognition Agency and other fee revenue are recognized by the Agency at the date of closing when the related bonds are issued. Interest income is recorded when earned.
Net Position GASB requires the classification of net position into three components. These classifications are displayed in three components below:
a. Net investment in capital assets ‐ 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. b. Restricted net position ‐ net position with constraints placed on their use either by (1) external groups such as creditors or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation.
c. Unrestricted net position ‐ all other assets that do not meet the definition of net investment in capital assets or restricted net position.
It is the Agency’s policy to first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available.
a. Net investment in capital assets ‐ 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. b. Restricted net position ‐ net position with constraints placed on their use either by (1) external groups such as creditors or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation.
c. Unrestricted net position ‐ all other assets that do not meet the definition of net investment in capital assets or restricted net position.
It is the Agency’s policy to first apply restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available.
The Agency provided grants to small businesses and not‐for‐profit corporations for the purpose of acquiring personal protective equipment (PPE) and/or installing fixtures necessary to prevent the spread of COVID‐19 in accordance with New York State General Municipal Law (GML) enacted in June 2020. The grants cannot exceed $10,000 and must meet eligibility criteria as described in GML. The total amount of grants disbursed was $196,287 for the year ended December 31, 2020. An additional $28,852 of grants remain payable at December 31, 2020.
‐ 13 ‐ The Agency provided grants to small businesses and not‐for‐profit corporations for the purpose of acquiring personal protective equipment (PPE) and/or installing fixtures necessary to prevent the spread of COVID‐19 in accordance with New York State General Municipal Law (GML) enacted in June 2020. The grants cannot exceed $10,000 and must meet eligibility criteria as described in GML. The total amount of grants disbursed was $196,287 for the year ended December 31, 2020. An additional $28,852 of grants remain payable at December 31, 2020.
‐ 13 ‐
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
The Industrial Development Agency Act (the "Act") of New York State sets forth the powers that the Agency can carry out. In accordance with the Act, the Agency was created to stimulate economic development, growth, and general prosperity for the people of Onondaga County by using incentives, rights, and powers in an efficient and cooperative manner. Qualified Agency projects are eligible for sales, mortgage, and real property tax exemptions. The Agency many also assist a projects' financing by issuing taxable and tax exempt bonds and by providing information on complementary financing such as fixed asset and working capital lending programs.
The Agency has instituted a Uniform Tax Exemption Policy ("UTEP") (last revised 9/15/20) which provides guidelines for the granting of real property, mortgage recording, and sales and use tax exemptions. To be eligible for financial assistance, the recipient of the financial assistance must abide by the requirements of this policy and complete an application process as instituted by the Agency.
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
The Industrial Development Agency Act (the "Act") of New York State sets forth the powers that the Agency can carry out. In accordance with the Act, the Agency was created to stimulate economic development, growth, and general prosperity for the people of Onondaga County by using incentives, rights, and powers in an efficient and cooperative manner. Qualified Agency projects are eligible for sales, mortgage, and real property tax exemptions. The Agency many also assist a projects' financing by issuing taxable and tax exempt bonds and by providing information on complementary financing such as fixed asset and working capital lending programs.
The Agency has instituted a Uniform Tax Exemption Policy ("UTEP") (last revised 9/15/20) which provides guidelines for the granting of real property, mortgage recording, and sales and use tax exemptions. To be eligible for financial assistance, the recipient of the financial assistance must abide by the requirements of this policy and complete an application process as instituted by the Agency.
In accordance with New York State General Municipal Law, the Agency has instituted a Recapture Policy (last revised 6/20/16) which allows for the recapture of financial incentive assistance provided to recipients for failure to comply with such Recapture Policy. New York State requires a mandatory recapture of the New York State portion of sales and use taxes for recipients for which the recipient was a) not entitled to; b) in excess of the amounts authorized by the Agency; c) for property or services not authorized by the Agency; and/or d) for a recipient that has failed to comply with material term or condition to use of the property or services in the manner required by any of the project documents between the recipient and the Agency. With respect to all other financial assistance provided to the recipient, the Agency shall have the right to suspend, discontinue, recapture or terminate financial assistance to any recipient to the extent that: a)for projects that utilized local sales and use tax exemptions, the project was not entitled to such exemptions, such exemptions were in excess of the amounts authorized by the Agency, and/or such exemptions were for property or services not authorized by the Agency; b) the recipient, upon completion of their project, fails to reach and maintain at least 75% of its employment requirements for job creation and/or retention; c) the total investment actually made with respect to the project at the project's completion date is less than 75% of its investment requirement; d) the recipient fails to provide annually to the Agency certain information to confirm that the project is achieving the investment, job retention, job creation, and other objectives of the project; or e) there otherwise occurs any event of default under any project document or material violation of the terms and conditions of any project document.
In accordance with New York State General Municipal Law, the Agency has instituted a Recapture Policy (last revised 6/20/16) which allows for the recapture of financial incentive assistance provided to recipients for failure to comply with such Recapture Policy. New York State requires a mandatory recapture of the New York State portion of sales and use taxes for recipients for which the recipient was a) not entitled to; b) in excess of the amounts authorized by the Agency; c) for property or services not authorized by the Agency; and/or d) for a recipient that has failed to comply with material term or condition to use of the property or services in the manner required by any of the project documents between the recipient and the Agency. With respect to all other financial assistance provided to the recipient, the Agency shall have the right to suspend, discontinue, recapture or terminate financial assistance to any recipient to the extent that: a)for projects that utilized local sales and use tax exemptions, the project was not entitled to such exemptions, such exemptions were in excess of the amounts authorized by the Agency, and/or such exemptions were for property or services not authorized by the Agency; b) the recipient, upon completion of their project, fails to reach and maintain at least 75% of its employment requirements for job creation and/or retention; c) the total investment actually made with respect to the project at the project's completion date is less than 75% of its investment requirement; d) the recipient fails to provide annually to the Agency certain information to confirm that the project is achieving the investment, job retention, job creation, and other objectives of the project; or e) there otherwise occurs any event of default under any project document or material violation of the terms and conditions of any project document.
‐ 14 ‐ ‐ 14 ‐
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
The Agency has not made any commitments as part of the agreements other than to reduce taxes. The Agency has chosen to disclose information about its tax abatement agreements individually. The Agency has listed all of its projects that were approved for the periods ended December 31, 2020 and 2019:
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
The Agency has not made any commitments as part of the agreements other than to reduce taxes. The Agency has chosen to disclose information about its tax abatement agreements individually. The Agency has listed all of its projects that were approved for the periods ended December 31, 2020 and 2019: December 31, 2020 Abatement Project Mortgage Sales PILOT Total 629 LeMoyne Manor LLC $ 90,000 $ 438,240 $ 1,052,604 $ 1,580,844 Abundant Solar Power 34,498 345,576 96,249 476,323 Cicero Energy Storage I LLC 68,618 768,000 211,569 1,048,187 Cicero Energy Storage II LLC 68,938 768,000 64,074 901,012 Empire Polymer Holdings LLC & Empire Polymer Solutions LLC 42,264 570,817 1,829,919 2,443,000 Milton CAT 187,000 1,040,000 ‐ 1,227,000 OYA Church Road A LLC ‐ 361,800 1,299,751 1,661,551 SSC Lysander LLC ‐ ‐ 905,855 905,855 Taft Solar LLC ‐ 169,920 835,265 1,005,185 Tessy Plastic 2020 Elbridge Expansion ‐ 323,600 802,663 1,126,263 Tracey Road Equipment Inc. 29,250 160,000 124,912 314,162 Ultra Dairy LLC ‐ 400,000 224,336 624,336 $ 520,568 $ 5,345,953 $ 7,447,197 $ 13,313,718 December 31, 2020 Abatement Project Mortgage Sales PILOT Total 629 LeMoyne Manor LLC $ 90,000 $ 438,240 $ 1,052,604 $ 1,580,844 Abundant Solar Power 34,498 345,576 96,249 476,323 Cicero Energy Storage I LLC 68,618 768,000 211,569 1,048,187 Cicero Energy Storage II LLC 68,938 768,000 64,074 901,012 Empire Polymer Holdings LLC & Empire Polymer Solutions LLC 42,264 570,817 1,829,919 2,443,000 Milton CAT 187,000 1,040,000 ‐ 1,227,000 OYA Church Road A LLC ‐ 361,800 1,299,751 1,661,551 SSC Lysander LLC ‐ ‐ 905,855 905,855 Taft Solar LLC ‐ 169,920 835,265 1,005,185 Tessy Plastic 2020 Elbridge Expansion ‐ 323,600 802,663 1,126,263 Tracey Road Equipment Inc. 29,250 160,000 124,912 314,162 Ultra Dairy LLC ‐ 400,000 224,336 624,336 $ 520,568 $ 5,345,953 $ 7,447,197 $ 13,313,718 December 31, 2019 Abatement Project Mortgage Sales PILOT Total Abundant Solar Power $ ‐ $ 76,366 $ 5,497 $ 81,863 TC Syracuse Development Associates, LLC 1,687,500 20,000,000 49,084,564 70,772,064 The Widewaters Group Inc. 129,097 806,620 685,589 1,621,306 Baldwinsville Housing Preservation ‐ 395,000 ‐ 395,000 BWI Hotel Acquisitions I, LLC 122,895 1,784,601 5,299,279 7,206,775 Flex Hose Co., Inc. 10,425 20,000 307,195 337,620 Cryomech, Inc. 84,000 550,000 747,974 1,381,974 VIP True North 22,763 131,280 ‐ 154,043 $ 2,056,680 $ 23,763,867 $ 56,130,098 $ 81,950,645 ‐ 15 ‐ December 31, 2019 Abatement Project Mortgage Sales PILOT Total Abundant Solar Power $ ‐ $ 76,366 $ 5,497 $ 81,863 TC Syracuse Development Associates, LLC 1,687,500 20,000,000 49,084,564 70,772,064 The Widewaters Group Inc. 129,097 806,620 685,589 1,621,306 Baldwinsville Housing Preservation ‐ 395,000 ‐ 395,000 BWI Hotel Acquisitions I, LLC 122,895 1,784,601 5,299,279 7,206,775 Flex Hose Co., Inc. 10,425 20,000 307,195 337,620 Cryomech, Inc. 84,000 550,000 747,974 1,381,974 VIP True North 22,763 131,280 ‐ 154,043 $ 2,056,680 $ 23,763,867 $ 56,130,098 $ 81,950,645 ‐ 15 ‐
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
The Agency follows an investment and deposit policy, the overall objective of which is to adequately safeguard the principal amount of funds invested or deposited; conform with federal, state and other legal requirements; and provide sufficient liquidity of invested funds in order to meet obligations as they become due. Oversight of investment activity is the responsibility of the Executive Director.
Monies must be deposited in Federal Deposit Insurance Corporation (FDIC) insured commercial banks or trust companies located within and authorized to do business in New York State (the State). Collateral is required for deposits and certificates of deposit not covered by FDIC insurance. Obligations that may be pledged as collateral are those identified in New York State General Municipal Law, Section 10 and outlined in the New York State Comptroller’s Financial Management Guide.
Interest Rate
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
The Agency follows an investment and deposit policy, the overall objective of which is to adequately safeguard the principal amount of funds invested or deposited; conform with federal, state and other legal requirements; and provide sufficient liquidity of invested funds in order to meet obligations as they become due. Oversight of investment activity is the responsibility of the Executive Director.
Monies must be deposited in Federal Deposit Insurance Corporation (FDIC) insured commercial banks or trust companies located within and authorized to do business in New York State (the State). Collateral is required for deposits and certificates of deposit not covered by FDIC insurance. Obligations that may be pledged as collateral are those identified in New York State General Municipal Law, Section 10 and outlined in the New York State Comptroller’s Financial Management Guide.
Interest Rate Risk Interest rate risk is the risk that the fair value of investments will be affected by changing interest rates. The Agency has an investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.) Credit Risk The Agency’s policy is to minimize the risk of loss due to failure of an issuer or other counterparty to an investment to fulfill its obligations. The Agency’s investments and deposit policy authorizes the Agency to purchase the following types of investments:
Obligations of the United States of America;
Obligations where payment of principal and interest are guaranteed by the United States of America; Obligations of New York State;
Special time deposit account; and Certificates of deposit.
Custodial Credit Risk Custodial credit risk is the risk that, in the event of a failure of a depository financial institution, the reporting entity may not recover its deposits. In accordance with the Agency’s investment and deposit policy, all deposits of the Agency including certificates of deposit and special time deposits, in excess of the amount insured under the provisions of the Federal Deposit Insurance Act (FDIA) shall be secured by a pledge of securities with an aggregate value equal to the aggregate amount of deposits.
Risk Interest rate risk is the risk that the fair value of investments will be affected by changing interest rates. The Agency has an investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.) Credit Risk The Agency’s policy is to minimize the risk of loss due to failure of an issuer or other counterparty to an investment to fulfill its obligations. The Agency’s investments and deposit policy authorizes the Agency to purchase the following types of investments:
Obligations of the United States of America;
Obligations where payment of principal and interest are guaranteed by the United States of America; Obligations of New York State;
Special time deposit account; and Certificates of deposit.
Custodial Credit Risk Custodial credit risk is the risk that, in the event of a failure of a depository financial institution, the reporting entity may not recover its deposits. In accordance with the Agency’s investment and deposit policy, all deposits of the Agency including certificates of deposit and special time deposits, in excess of the amount insured under the provisions of the Federal Deposit Insurance Act (FDIA) shall be secured by a pledge of securities with an aggregate value equal to the aggregate amount of deposits.
‐ 16 ‐ ‐ 16 ‐
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
The Agency restricts the securities to the following eligible items:
Obligations issued, or fully insured or guaranteed as to the payment of principal and interest, by the United States of America, an agency thereof or a United States government sponsored corporation; Obligations partially insured or guaranteed by an agency of the United States of America; Obligations issued or fully insured or guaranteed by the State of New York;
Obligations issued by a municipal corporation, school district or district corporation of New York State;
Obligations issued by states (other than New York State) of the United States of America rated in one of the two highest rating categories by at least one Nationally Recognized Statistical Rating Organization (NRSRO).
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
The Agency restricts the securities to the following eligible items:
Obligations issued, or fully insured or guaranteed as to the payment of principal and interest, by the United States of America, an agency thereof or a United States government sponsored corporation; Obligations partially insured or guaranteed by an agency of the United States of America; Obligations issued or fully insured or guaranteed by the State of New York;
Obligations issued by a municipal corporation, school district or district corporation of New York State;
Obligations issued by states (other than New York State) of the United States of America rated in one of the two highest rating categories by at least one Nationally Recognized Statistical Rating Organization (NRSRO).
The Agency maintained cash balances of approximately $5,069,972 and $2,206,148 in cash and cash equivalents at December 31, 2020 and 2019, respectively, with financial institutions insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per bank for interest bearing and non‐interest bearing accounts. The remaining balance was collateralized by a third party in accordance with New York State General Municipal Law, Section 10 and the Agency’s policies.
The Agency maintained cash balances of approximately $5,069,972 and $2,206,148 in cash and cash equivalents at December 31, 2020 and 2019, respectively, with financial institutions insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per bank for interest bearing and non‐interest bearing accounts. The remaining balance was collateralized by a third party in accordance with New York State General Municipal Law, Section 10 and the Agency’s policies.
Capital asset activity for the year ended December 31, 2020 was as follows:
Beginning Ending Balance Increases Decreases Balance Non depreciable land:
White Pine Commerce Park $ 3,327,146 $ ‐ $ ‐ $ 3,327,146 435 North Salina 17,084 ‐ ‐ 17,084 800 Hiawatha 604,840 ‐ ‐ 604,840 Subtotal 3,949,070 ‐ ‐ 3,949,070 Depreciable:
Buildings 634,422 ‐ ‐ 634,422 Furniture and Fixtures 2,862 ‐ ‐ 2,862 Subtotal 637,284 ‐ ‐ 637,284 Total capital assets 4,586,354 ‐ ‐ 4,586,354 Accumulated depreciation:
Buildings 65,068 16,268 ‐ 81,336 Furniture and Fixtures 2,862 ‐ ‐ 2,862 Total 67,930 16,268 ‐ 84,198 Net capital assets $ 4,518,424 $ (16,268) $ ‐ $ 4,502,156 Capital asset activity for the year ended December 31, 2020 was as follows:
Beginning Ending Balance Increases Decreases Balance Non depreciable land:
White Pine Commerce Park $ 3,327,146 $ ‐ $ ‐ $ 3,327,146 435 North Salina 17,084 ‐ ‐ 17,084 800 Hiawatha 604,840 ‐ ‐ 604,840 Subtotal 3,949,070 ‐ ‐ 3,949,070 Depreciable:
Buildings 634,422 ‐ ‐ 634,422 Furniture and Fixtures 2,862 ‐ ‐ 2,862 Subtotal 637,284 ‐ ‐ 637,284 Total capital assets 4,586,354 ‐ ‐ 4,586,354 Accumulated depreciation:
Buildings 65,068 16,268 ‐ 81,336 Furniture and Fixtures 2,862 ‐ ‐ 2,862 Total 67,930 16,268 ‐ 84,198 Net capital assets $ 4,518,424 $ (16,268) $ ‐ $ 4,502,156 ‐ 17 ‐ ‐ 17 ‐
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
Capital asset activity for the year ended December 31, 2019 was as follows:
Beginning Ending Balance Increases Decreases Balance Non depreciable land:
White Pine Commerce Park $ 2,427,146 $ 900,000 $ ‐ $ 3,327,146 435 North Salina 17,084 ‐ ‐ 17,084 800 Hiawatha 604,840 ‐ ‐ 604,840 Subtotal 3,049,070 900,000 ‐ 3,949,070 Depreciable:
Buildings 634,422 ‐ ‐ 634,422 Furniture and Fixtures 2,862 ‐ ‐ 2,862 Subtotal 637,284 ‐ ‐ 637,284 Total capital assets 3,686,354 900,000 ‐ 4,586,354 Accumulated depreciation:
Buildings 48,801 16,267 ‐ 65,068 Furniture and Fixtures 2,862 ‐ ‐ 2,862 Total 51,663 16,267 ‐ 67,930 Net capital assets $ 3,634,691 $ 883,733 $ ‐ $ 4,518,424
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
Capital asset activity for the year ended December 31, 2019 was as follows:
Beginning Ending Balance Increases Decreases Balance Non depreciable land:
White Pine Commerce Park $ 2,427,146 $ 900,000 $ ‐ $ 3,327,146 435 North Salina 17,084 ‐ ‐ 17,084 800 Hiawatha 604,840 ‐ ‐ 604,840 Subtotal 3,049,070 900,000 ‐ 3,949,070 Depreciable:
Buildings 634,422 ‐ ‐ 634,422 Furniture and Fixtures 2,862 ‐ ‐ 2,862 Subtotal 637,284 ‐ ‐ 637,284 Total capital assets 3,686,354 900,000 ‐ 4,586,354 Accumulated depreciation:
Buildings 48,801 16,267 ‐ 65,068 Furniture and Fixtures 2,862 ‐ ‐ 2,862 Total 51,663 16,267 ‐ 67,930 Net capital assets $ 3,634,691 $ 883,733 $ ‐ $ 4,518,424 The Agency owns the White Pine Commerce Park, which is a business park located in the Town of Clay, northern Onondaga County. The Agency is developing the business park to be a build‐ready site suitable for an array of local and global market sectors. Costs incurred of $797,838 during 2020 were expensed as incurred in accordance with GASB No. 62.
The total amount of industrial development, civic facility and pollution control financing issued through the Agency outstanding as of December 31, 2020 amounted to approximately $92,877,101. These financing obligations are not obligations of the Agency as the Agency acts a conduit for the obligations. The Agency does not have the obligation to repay the principal and interest of such obligations, as such, the obligations are not reflected as long‐term obligations of the Agency.
The Agency will reimburse the County for a portion of the cost of operation of the Onondaga County Office of Economic Development. In exchange for this funding, the staff of the office provides operational and project implementation support services for the Agency. Maximum funds committed by the Agency were $413,546 and $655,749 for the years ended December 31, 2020 and 2019, respectively. The Agency owed $0 and $312,981 to the County at December 31, 2020 and 2019, respectively.
The Agency owns the White Pine Commerce Park, which is a business park located in the Town of Clay, northern Onondaga County. The Agency is developing the business park to be a build‐ready site suitable for an array of local and global market sectors. Costs incurred of $797,838 during 2020 were expensed as incurred in accordance with GASB No. 62.
The total amount of industrial development, civic facility and pollution control financing issued through the Agency outstanding as of December 31, 2020 amounted to approximately $92,877,101. These financing obligations are not obligations of the Agency as the Agency acts a conduit for the obligations. The Agency does not have the obligation to repay the principal and interest of such obligations, as such, the obligations are not reflected as long‐term obligations of the Agency.
The Agency will reimburse the County for a portion of the cost of operation of the Onondaga County Office of Economic Development. In exchange for this funding, the staff of the office provides operational and project implementation support services for the Agency. Maximum funds committed by the Agency were $413,546 and $655,749 for the years ended December 31, 2020 and 2019, respectively. The Agency owed $0 and $312,981 to the County at December 31, 2020 and 2019, respectively.
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(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
In accordance with its corporate purpose, the Agency has issued bonds to promote and develop various businesses within the County. The Agency holds legal title to the properties, under which such bonds were issued in order for business to acquire or renovate various facilities. The Agency’s primary function is to arrange financing between borrowing companies and bondholders (conduit debt). For providing this service, the Agency receives administration fees from the borrowing companies. Total bonds outstanding were $92,877,101 and $123,213,466 at December 31, 2020 and 2019, respectively, which represent non‐recourse debt of the Agency. The Agency does not have the obligation to repay the principal and interest of such obligations, as such, the obligations are not reflected as long‐term obligations of the Agency.
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
In accordance with its corporate purpose, the Agency has issued bonds to promote and develop various businesses within the County. The Agency holds legal title to the properties, under which such bonds were issued in order for business to acquire or renovate various facilities. The Agency’s primary function is to arrange financing between borrowing companies and bondholders (conduit debt). For providing this service, the Agency receives administration fees from the borrowing companies. Total bonds outstanding were $92,877,101 and $123,213,466 at December 31, 2020 and 2019, respectively, which represent non‐recourse debt of the Agency. The Agency does not have the obligation to repay the principal and interest of such obligations, as such, the obligations are not reflected as long‐term obligations of the Agency.
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