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315.435.3770 • ECONOMICDEVELOPMENT@ONGOV.NET Audit Committee Meeting Agenda March 14, 2024 8:30 A.M. Call to Order Meeting of the Audit Committee Janice Herzog, Cydney Johnson & Patrick Hogan 1. Approval of the Minutes of the October 12, 2023 Meeting of the Audit Committee Action Items:
Review and discuss the 2023 Audit of the Agency. Determine a recommendation to be made to the Agency board.
Committee Action Requested:
a. A resolution of the Committee’s recommendation to the full OCIDA Board regarding the 2023 Audit of the Agency.
Representative: Mike Lisson, Auditor, Grossman St. Amour CPAs Adjourn Onondaga County Industrial Development Agency Audit Committee Meeting Minutes October 12, 2023 An Audit Committee meeting of the Onondaga County Industrial Development Agency was held on Thursday, October 12, 2023, at the 335 Montgomery Street, Floor 2M, Syracuse, New York.
Chairperson Janice Herzog called the meeting to order at 8:35 am with the following:
PRESENT:
Janice Herzog Cydney Johnson Patrick Hogan
315.435.3770 • ECONOMICDEVELOPMENT@ONGOV.NET Audit Committee Meeting Agenda March 14, 2024 8:30 A.M. Call to Order Meeting of the Audit Committee Janice Herzog, Cydney Johnson & Patrick Hogan 1. Approval of the Minutes of the October 12, 2023 Meeting of the Audit Committee Action Items:
Review and discuss the 2023 Audit of the Agency. Determine a recommendation to be made to the Agency board.
Committee Action Requested:
a. A resolution of the Committee’s recommendation to the full OCIDA Board regarding the 2023 Audit of the Agency.
Representative: Mike Lisson, Auditor, Grossman St. Amour CPAs Adjourn Onondaga County Industrial Development Agency Audit Committee Meeting Minutes October 12, 2023 An Audit Committee meeting of the Onondaga County Industrial Development Agency was held on Thursday, October 12, 2023, at the 335 Montgomery Street, Floor 2M, Syracuse, New York.
Chairperson Janice Herzog called the meeting to order at 8:35 am with the following:
PRESENT:
Janice Herzog Cydney Johnson Patrick Hogan
ALSO PRESENT:
Robert M. Petrovich, Executive Director Nate Stevens, Treasurer Nancy Lowery, Secretary Karen Doster, Recording Secretary Alexis Rodriguez, Assistant Treasurer Jeff Davis, Barclay Damon Law Firm Amanda Fitzgerald, Barclay Damon Law Firm Len Rauch, Office of Economic Development Mike Lisson, Grossman St. Amour PLLC Brianah Lane, Grossman St. Amour PLLC APPROVAL OF AUDIT MEETING MINUTES – MARCH 23, 2023 Upon a motion by Cydney Johnson, seconded by Patrick Hogan, the OCIDA Audit Committee approved the minutes of the March 23, 2023 meeting. Motion was carried.
ALSO PRESENT:
Robert M. Petrovich, Executive Director Nate Stevens, Treasurer Nancy Lowery, Secretary Karen Doster, Recording Secretary Alexis Rodriguez, Assistant Treasurer Jeff Davis, Barclay Damon Law Firm Amanda Fitzgerald, Barclay Damon Law Firm Len Rauch, Office of Economic Development Mike Lisson, Grossman St. Amour PLLC Brianah Lane, Grossman St. Amour PLLC APPROVAL OF AUDIT MEETING MINUTES – MARCH 23, 2023 Upon a motion by Cydney Johnson, seconded by Patrick Hogan, the OCIDA Audit Committee approved the minutes of the March 23, 2023 meeting. Motion was carried.
Mike Lisson stated there are not a lot of major changes in the accounting and audit standards applied to conducting the audit. He stated he does not expect major process changes. He stated they work with the staff over the course of the year so they are aware of things. He stated they will be done and ready to issue by mid-March timeframe.
1
Mike Lisson stated there are not a lot of major changes in the accounting and audit standards applied to conducting the audit. He stated he does not expect major process changes. He stated they work with the staff over the course of the year so they are aware of things. He stated they will be done and ready to issue by mid-March timeframe.
1
Upon a motion by Patrick Hogan, seconded by Cydney Johnson, the OCIDA Audit Committee approved a resolution to transmit the summary self-evaluation without comment to the Governance Committee for review and recommendation to the Board. Motion was carried.
Upon a motion by Patrick Hogan, seconded by Cydney Johnson, the OCIDA Audit Committee approved a resolution to transmit the summary self-evaluation without comment to the Governance Committee for review and recommendation to the Board. Motion was carried.
Nancy Lowery stated there are no changes to the Committee Charter.
Upon a motion by Patrick Hogan, seconded by Cydney Johnson, the OCIDA Audit Committee approved a resolution to transmit the Committee Charter without comment to the Governance Committee for review and recommendation to the Board. Motion was carried.
Nancy Lowery stated there are no changes to the Committee Charter.
Upon a motion by Patrick Hogan, seconded by Cydney Johnson, the OCIDA Audit Committee approved a resolution to transmit the Committee Charter without comment to the Governance Committee for review and recommendation to the Board. Motion was carried.
Nancy Lowery gave a short review of the Annual Report.
Upon a motion by Cydney Johnson, seconded by Patrick Hogan, the OCIDA Audit Committee approved a resolution to transmit the 2023 Committee Annual Report to the Governance Committee for review and recommendation to the Board. Motion was carried.
Nancy Lowery gave a short review of the Annual Report.
Upon a motion by Cydney Johnson, seconded by Patrick Hogan, the OCIDA Audit Committee approved a resolution to transmit the 2023 Committee Annual Report to the Governance Committee for review and recommendation to the Board. Motion was carried.
Upon a motion by Patrick Hogan, seconded by Cydney Johnson, the OCIDA Audit Committee adjourned the meeting at 8:04 am. Motion was carried.
____________________________________ Nancy Lowery, Secretary 2
Upon a motion by Patrick Hogan, seconded by Cydney Johnson, the OCIDA Audit Committee adjourned the meeting at 8:04 am. Motion was carried.
____________________________________ Nancy Lowery, Secretary 2
(A DISCRETELY PRESENTED COMPONENT UNIT
(A DISCRETELY PRESENTED COMPONENT UNIT
December 31, 2023 and 2022
December 31, 2023 and 2022
(A Discretely Presented Component Unit of the County of Onondaga, New York) Table of Contents Independent Auditor’s Report 1‐3 Required Supplementary Information:
Management’s Discussion and Analysis (Unaudited) 4‐7 Financial Statements:
Statements of Net Position ‐ December 31, 2023 and 2022 8 Statements of Revenues, Expenses and Changes in Net Position ‐ For the Years Ended December 31, 2023 and 2022 9 Statements of Cash Flows ‐ For the Years Ended December 31, 2023 and 2022 10 ‐ 11 Notes to Financial Statements 12 ‐ 21 Supplementary Information:
Supplemental Schedule of Revenue Bonds and Other Bonds (Conduit Debt Obligations) 22 ‐ 23 INDEPENDENT AUDITOR’S REPORT Board of Directors Onondaga County Industrial Development Agency Syracuse, New York Report on the Audit of the Financial Statements
(A Discretely Presented Component Unit of the County of Onondaga, New York) Table of Contents Independent Auditor’s Report 1‐3 Required Supplementary Information:
Management’s Discussion and Analysis (Unaudited) 4‐7 Financial Statements:
Statements of Net Position ‐ December 31, 2023 and 2022 8 Statements of Revenues, Expenses and Changes in Net Position ‐ For the Years Ended December 31, 2023 and 2022 9 Statements of Cash Flows ‐ For the Years Ended December 31, 2023 and 2022 10 ‐ 11 Notes to Financial Statements 12 ‐ 21 Supplementary Information:
Supplemental Schedule of Revenue Bonds and Other Bonds (Conduit Debt Obligations) 22 ‐ 23 INDEPENDENT AUDITOR’S REPORT Board of Directors Onondaga County Industrial Development Agency Syracuse, New York Report on the Audit of the Financial Statements We have audited the 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 years ended December 31, 2023 and 2022, and the related notes to the financial statements, which collectively comprise the Agency’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Agency, as of December 31, 2023 and 2022, 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.
Basis for Opinion We have audited the 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 years ended December 31, 2023 and 2022, and the related notes to the financial statements, which collectively comprise the Agency’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Agency, as of December 31, 2023 and 2022, 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.
Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Agency and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management 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, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Agency’s ability to continue as a going concern for one year beyond the financial statement date.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Agency and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management 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, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Agency’s ability to continue as a going concern for one year beyond the financial statement date.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Agency’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Agency’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Required Supplementary Information • Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Agency’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Agency’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis on pages 4‐7 be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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. Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis on pages 4‐7 be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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. Supplementary 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.
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 14, 2024, 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 14, 2024 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 14, 2024, 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 14, 2024
(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), and the annual financial report presents our discussion and analysis of the Agency’s financial performance during the year ended December 31, 2023. 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), and the annual financial report presents our discussion and analysis of the Agency’s financial performance during the year ended December 31, 2023. 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 December 31,
Cash and cash equivalents $ 6,329,946 $ 4,051,978 $ 2,975,229 Receivables ‐ agency fees 293,448 417,245 282,570 Receivables ‐ White Pines pass through 2,027,442 209,113 ‐ Receivables ‐ PILOT pass through ‐ 32,471 32,765 Capital assets 2,746,373 4,766,163 4,488,414 Investment in real property 30,756,703 29,508,083 6,180,006 Total assets 42,153,912 38,985,053 13,958,984 Current liabilities 2,304,600 624,164 749,875 Note payable to Onondaga County 29,902,708 25,888,840 1,747,910 Total liabilities 32,207,308 26,513,004 2,497,785 December 31,
Cash and cash equivalents $ 6,329,946 $ 4,051,978 $ 2,975,229 Receivables ‐ agency fees 293,448 417,245 282,570 Receivables ‐ White Pines pass through 2,027,442 209,113 ‐ Receivables ‐ PILOT pass through ‐ 32,471 32,765 Capital assets 2,746,373 4,766,163 4,488,414 Investment in real property 30,756,703 29,508,083 6,180,006 Total assets 42,153,912 38,985,053 13,958,984 Current liabilities 2,304,600 624,164 749,875 Note payable to Onondaga County 29,902,708 25,888,840 1,747,910 Total liabilities 32,207,308 26,513,004 2,497,785 Net position:
Net investment in capital assets 2,746,373 4,766,163 4,488,414 Unrestricted 7,200,231 7,705,886 6,972,785 Total net position $ 9,946,604 $ 12,472,049 $ 11,461,199 ‐4‐ Net position:
Net investment in capital assets 2,746,373 4,766,163 4,488,414 Unrestricted 7,200,231 7,705,886 6,972,785 Total net position $ 9,946,604 $ 12,472,049 $ 11,461,199 ‐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) The change in assets, liabilities and net position categories for the year ended December 31, 2023 compared to December 31, 2022 included the following:
Total operating cash increased $1,996,465 due to current operations, which included an increase of cash from Agency fees of $676,317. The Agency spent $797,878 in cash expenses which is a decrease of $1,059,968 from 2022.
Investment in real property represents the spending related to the White Pine Commerce Park for purchases of land, including incidental costs to purchase such land. The agency spent $2,679,472 for these purchases of in real property during 2023.
Current liabilities increased $1,680,436, primarily due to the timing of professional fees related to the White Pine Commerce Park site, offset by a decrease of $105,404 of an escrow for an Agency project. The note payable to Onondaga County of $29,902,708 represents the advances and accrued interest against a note agreement entered into with Onondaga County in 2021 (amended in 2022) which provides up to $45,000,000 of available credit to assist the Agency in funding its program incentives, projects, asset development and work related improvements. The primary use of the advances are related to the White Pine Commerce Park.
FINANCIAL STATEMENTS (continued) The change in assets, liabilities and net position categories for the year ended December 31, 2023 compared to December 31, 2022 included the following:
Total operating cash increased $1,996,465 due to current operations, which included an increase of cash from Agency fees of $676,317. The Agency spent $797,878 in cash expenses which is a decrease of $1,059,968 from 2022.
Investment in real property represents the spending related to the White Pine Commerce Park for purchases of land, including incidental costs to purchase such land. The agency spent $2,679,472 for these purchases of in real property during 2023.
Current liabilities increased $1,680,436, primarily due to the timing of professional fees related to the White Pine Commerce Park site, offset by a decrease of $105,404 of an escrow for an Agency project. The note payable to Onondaga County of $29,902,708 represents the advances and accrued interest against a note agreement entered into with Onondaga County in 2021 (amended in 2022) which provides up to $45,000,000 of available credit to assist the Agency in funding its program incentives, projects, asset development and work related improvements. The primary use of the advances are related to the White Pine Commerce Park.
The Agency’s total net position increased $386,643. Operating revenues exceeded operating expenses by $1,971,072 in the current year, a net increase of $476,144 from prior year. Operating expenditures totaling $5,969,266 primarily consists of White Pine Commerce Park pass‐through expenses totaling $5,269,792 and development costs totaling $265,961 which decreased $459,967 compared to 2022. General and administrative expenses totaling $251,285 primarily consist of ordinary business expenses of the Agency, such as rent, professional fees and other Agency related expenses.
‐5‐ The Agency’s total net position increased $386,643. Operating revenues exceeded operating expenses by $1,971,072 in the current year, a net increase of $476,144 from prior year. Operating expenditures totaling $5,969,266 primarily consists of White Pine Commerce Park pass‐through expenses totaling $5,269,792 and development costs totaling $265,961 which decreased $459,967 compared to 2022. General and administrative expenses totaling $251,285 primarily consist of ordinary business expenses of the Agency, such as rent, professional fees and other Agency related expenses.
‐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)
Condensed Comparative Financial Information (continued) December 31,
Operating revenues $ 17,432,835 $ 2,887,193 $ 2,334,950 Operating expenses 15,461,763 1,392,265 326,923 Operating income (loss) 1,971,072 1,494,928 2,008,027 Other revenues (expenses) (4,496,517) (484,078) (1,390) Change in net position (2,525,445) 1,010,850 2,006,637 Net position ‐ beginning of year 12,472,049 11,461,199 9,454,562 Net position ‐ end of year $ 9,946,604 $ 12,472,049 $ 11,461,199 Change in financial categories between the year ended December 31, 2023 and the year ended December 31, 2022 include the following:
Condensed Comparative Financial Information (continued) December 31,
Operating revenues $ 17,432,835 $ 2,887,193 $ 2,334,950 Operating expenses 15,461,763 1,392,265 326,923 Operating income (loss) 1,971,072 1,494,928 2,008,027 Other revenues (expenses) (4,496,517) (484,078) (1,390) Change in net position (2,525,445) 1,010,850 2,006,637 Net position ‐ beginning of year 12,472,049 11,461,199 9,454,562 Net position ‐ end of year $ 9,946,604 $ 12,472,049 $ 11,461,199 Change in financial categories between the year ended December 31, 2023 and the year ended December 31, 2022 include the following:
Operating Revenues increased $5,053,145, net in 2023 compared to an increase of $552,243, net in 2022. This was primarily due to the following: 1) Increase in overall Agency fees received of $417,845 compared to 2022. Significant Agency fees included $276,362 from QP2 Properties, LLC and $209,979 from Bluefors Inc. 2) Decrease in subsidies, grants and donations of $488,218, mainly due to $373,811 of grants from a utility company in 2022 for work related to the White Pine Commerce Park which were not recurring transactions in 2023 and 3) Increase of pass‐through income of $5,060,679 compared to 2022 for services primarily related to White Pine Commerce Park that will be reimbursed by a Company that will utilize the Park. Operating Expenses increased $4,577,001, net in 2023. This was primarily due to an increase of pass‐through expenses of $5,060,679 compared to 2022 for services primarily related to White Pine Commerce Park that will be reimbursed by a Company that will utilize the Park. In addition, development costs at the White Pine Commerce Park decreased $459,967 compared to 2022.
‐6‐ Operating Revenues increased $5,053,145, net in 2023 compared to an increase of $552,243, net in 2022. This was primarily due to the following: 1) Increase in overall Agency fees received of $417,845 compared to 2022. Significant Agency fees included $276,362 from QP2 Properties, LLC and $209,979 from Bluefors Inc. 2) Decrease in subsidies, grants and donations of $488,218, mainly due to $373,811 of grants from a utility company in 2022 for work related to the White Pine Commerce Park which were not recurring transactions in 2023 and 3) Increase of pass‐through income of $5,060,679 compared to 2022 for services primarily related to White Pine Commerce Park that will be reimbursed by a Company that will utilize the Park. Operating Expenses increased $4,577,001, net in 2023. This was primarily due to an increase of pass‐through expenses of $5,060,679 compared to 2022 for services primarily related to White Pine Commerce Park that will be reimbursed by a Company that will utilize the Park. In addition, development costs at the White Pine Commerce Park decreased $459,967 compared to 2022.
‐6‐
(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, 2023, the Agency received $2,686,827 from agency and other fees, an increase of $676,317 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 2023 and 2022, the County did not charge the Agency for the expenses incurred.
Capital Assets and Investment in Real Property As of December 31, 2023, the Agency’s investment in capital assets was $2,746,373, net of depreciation. The Agency’s capital assets include White Pine South ($2,140,557) and other land (800 Hiawatha Blvd) and furniture and fixtures. In 2023, the Agency sold property on North Salina Street.
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, 2023, the Agency received $2,686,827 from agency and other fees, an increase of $676,317 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 2023 and 2022, the County did not charge the Agency for the expenses incurred.
Capital Assets and Investment in Real Property As of December 31, 2023, the Agency’s investment in capital assets was $2,746,373, net of depreciation. The Agency’s capital assets include White Pine South ($2,140,557) and other land (800 Hiawatha Blvd) and furniture and fixtures. In 2023, the Agency sold property on North Salina Street.
Investment in real property of $30,756,703 consists of land and related costs related to the White Pine Commerce Park, representing a net increase of $1,248,620 compared to 2022. The Agency had purchases of $2,679,472 in 2023, offset by reclassifications and costs expensed during the current year totaling $1,430,852. 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, 335 Montgomery Street, 2nd Floor, Syracuse, New York 13202.
‐7‐ Investment in real property of $30,756,703 consists of land and related costs related to the White Pine Commerce Park, representing a net increase of $1,248,620 compared to 2022. The Agency had purchases of $2,679,472 in 2023, offset by reclassifications and costs expensed during the current year totaling $1,430,852. 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, 335 Montgomery Street, 2nd Floor, Syracuse, New York 13202.
‐7‐
(A Discretely Presented Component Unit of the County of Onondaga, New York) Statements of Net Position December 31,
Current assets Cash and cash equivalents ‐ unrestricted $ 6,329,946 $ 4,051,978 Receivables ‐ agency fees 293,448 417,245 Receivables ‐ White Pines pass through 2,027,442 209,113 Receivables ‐ PILOT pass through ‐ 32,471 Total current assets 8,650,836 4,710,807 Non‐current assets Capital assets, net 2,746,373 4,766,163 Investment in real property 30,756,703 29,508,083 Total non‐current assets 33,503,076 34,274,246
(A Discretely Presented Component Unit of the County of Onondaga, New York) Statements of Net Position December 31,
Current assets Cash and cash equivalents ‐ unrestricted $ 6,329,946 $ 4,051,978 Receivables ‐ agency fees 293,448 417,245 Receivables ‐ White Pines pass through 2,027,442 209,113 Receivables ‐ PILOT pass through ‐ 32,471 Total current assets 8,650,836 4,710,807 Non‐current assets Capital assets, net 2,746,373 4,766,163 Investment in real property 30,756,703 29,508,083 Total non‐current assets 33,503,076 34,274,246 Total assets $ 42,153,912 $ 38,985,053 Total assets $ 42,153,912 $ 38,985,053
Current liabilities Accounts payable $ 500 $ 10,200 Payables ‐ White Pines pass through 2,027,442 199,431 Payables ‐ PILOT pass through ‐ 32,471 Escrows and deposits 276,658 382,062 Total current liabilities 2,304,600 624,164 Non‐current liabilities Note payable to Onondaga County, including accrued interest 29,902,708 25,888,840 Total non‐current liabilities 29,902,708 25,888,840 Total liabilities 32,207,308 26,513,004 Net investment in capital assets 2,746,373 4,766,163 Unrestricted Net Position 7,200,231 7,705,886 Total net position 9,946,604 12,472,049
Current liabilities Accounts payable $ 500 $ 10,200 Payables ‐ White Pines pass through 2,027,442 199,431 Payables ‐ PILOT pass through ‐ 32,471 Escrows and deposits 276,658 382,062 Total current liabilities 2,304,600 624,164 Non‐current liabilities Note payable to Onondaga County, including accrued interest 29,902,708 25,888,840 Total non‐current liabilities 29,902,708 25,888,840 Total liabilities 32,207,308 26,513,004 Net investment in capital assets 2,746,373 4,766,163 Unrestricted Net Position 7,200,231 7,705,886 Total net position 9,946,604 12,472,049 $ 42,153,912 $ 38,985,053 The accompanying notes are an integral part of these financial statements ‐8‐ $ 42,153,912 $ 38,985,053 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 Revenues, Expenses and Changes in Net Position Year Ended December 31,
Operating revenue:
Agency and other fees $ 2,563,030 $ 2,145,185 Pass‐through income ‐ White Pines 5,269,792 209,113 Pass‐through income ‐ PILOT 9,492,497 9,223,618 Rent income 19,767 11,500 Subsidies, grants, and donations 19,709 507,927 Other income 68,040 13,468 Total operating revenues 17,432,835 12,110,811
(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 $ 2,563,030 $ 2,145,185 Pass‐through income ‐ White Pines 5,269,792 209,113 Pass‐through income ‐ PILOT 9,492,497 9,223,618 Rent income 19,767 11,500 Subsidies, grants, and donations 19,709 507,927 Other income 68,040 13,468 Total operating revenues 17,432,835 12,110,811 Operating expenses:
General and administrative 251,285 338,064 Development costs ‐ White Pines 265,961 725,928 Pass‐through expense ‐ White Pines 5,269,792 209,113 Pass‐through expense ‐ PILOT 9,492,497 9,223,618 Depreciation expense 7,018 16,898 Professional fees 143,260 69,300 Other expenses 2,053 4,106 Seminars and meetings 29,897 28,856 Total operating expenses 15,461,763 10,615,883 Operating income 1,971,072 1,494,928 Non‐operating income (expenses):
Interest income 93,826 2,449 Interest expense (1,334,395) (486,527) Loss on sale of property (343,860) ‐ Change in use of real property (2,912,088) ‐ Total non‐operating income (expenses) (4,496,517) (484,078) Operating expenses:
General and administrative 251,285 338,064 Development costs ‐ White Pines 265,961 725,928 Pass‐through expense ‐ White Pines 5,269,792 209,113 Pass‐through expense ‐ PILOT 9,492,497 9,223,618 Depreciation expense 7,018 16,898 Professional fees 143,260 69,300 Other expenses 2,053 4,106 Seminars and meetings 29,897 28,856 Total operating expenses 15,461,763 10,615,883 Operating income 1,971,072 1,494,928 Non‐operating income (expenses):
Interest income 93,826 2,449 Interest expense (1,334,395) (486,527) Loss on sale of property (343,860) ‐ Change in use of real property (2,912,088) ‐ Total non‐operating income (expenses) (4,496,517) (484,078) Change in net position (2,525,445) 1,010,850 Net position ‐ beginning of the year 12,472,049 11,461,199 Net position ‐ end of year $ 9,946,604 $ 12,472,049 The accompanying notes are an integral part of these financial statements ‐9‐ Change in net position (2,525,445) 1,010,850 Net position ‐ beginning of the year 12,472,049 11,461,199 Net position ‐ end of year $ 9,946,604 $ 12,472,049 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 Years Ended December 31,
Cash flows from operating activities Cash received for agency and other fees $ 2,686,827 $ 2,010,510 Cash received for White Pines Commerce Park Development 3,451,463 ‐ Cash received for PILOTs 9,524,968 9,191,147 Cash received for grants 19,709 507,927 Cash received for rent and other fees 87,807 24,968 Cash received for escrows, net ‐ 357,062 Cash paid for White Pines Commerce Park Development (3,441,781) (9,682) Cash paid for PILOTs (9,524,968) (9,191,147) Cash paid for economic development (265,961) (725,928) Cash payments for professional services (143,260) (69,300) Cash payments for general and administrative expenses (260,985) (1,019,974) Cash payments from escrows (105,404) ‐ Cash payments for other operating expenses (2,053) (4,106) Cash paid for seminars and meetings (29,897) (28,856)
(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 $ 2,686,827 $ 2,010,510 Cash received for White Pines Commerce Park Development 3,451,463 ‐ Cash received for PILOTs 9,524,968 9,191,147 Cash received for grants 19,709 507,927 Cash received for rent and other fees 87,807 24,968 Cash received for escrows, net ‐ 357,062 Cash paid for White Pines Commerce Park Development (3,441,781) (9,682) Cash paid for PILOTs (9,524,968) (9,191,147) Cash paid for economic development (265,961) (725,928) Cash payments for professional services (143,260) (69,300) Cash payments for general and administrative expenses (260,985) (1,019,974) Cash payments from escrows (105,404) ‐ Cash payments for other operating expenses (2,053) (4,106) Cash paid for seminars and meetings (29,897) (28,856) Net cash flows from operating activities 1,996,465 1,042,621 Cash flows from capital and related financing activities Proceeds from note payable to Onondaga County 2,679,473 23,654,403 Proceeds from sale of property 187,676 ‐ Purchases of capital assets ‐ (294,647) Purchases of investments in real property (2,679,472) (23,328,077) Net cash flows from capital and related financing activities 187,677 31,679 Cash flows from noncapital financing activities Net cash received for interest on notes outstanding ‐ 2,449 Net cash flows from noncapital financing activities ‐ 2,449 Cash flows from investing activities Proceeds from interest on bank deposits 93,826 ‐ Net cash flows from investing activities 93,826 ‐ Net cash flows from operating activities 1,996,465 1,042,621 Cash flows from capital and related financing activities Proceeds from note payable to Onondaga County 2,679,473 23,654,403 Proceeds from sale of property 187,676 ‐ Purchases of capital assets ‐ (294,647) Purchases of investments in real property (2,679,472) (23,328,077) Net cash flows from capital and related financing activities 187,677 31,679 Cash flows from noncapital financing activities Net cash received for interest on notes outstanding ‐ 2,449 Net cash flows from noncapital financing activities ‐ 2,449 Cash flows from investing activities Proceeds from interest on bank deposits 93,826 ‐ Net cash flows from investing activities 93,826 ‐ Change in cash and cash equivalents 2,277,968 1,076,749 Cash and cash equivalents ‐ beginning of year 4,051,978 2,975,229 Cash and cash equivalents ‐ end of year $ 6,329,946 $ 4,051,978 The accompanying notes are an integral part of these financial statements ‐ 10 ‐ Change in cash and cash equivalents 2,277,968 1,076,749 Cash and cash equivalents ‐ beginning of year 4,051,978 2,975,229 Cash and cash equivalents ‐ end of year $ 6,329,946 $ 4,051,978 The accompanying notes are an integral part of these financial statements ‐ 10 ‐
(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:
Operating income $ 1,971,072 $ 1,494,928 Adjustment to reconcile operating income to net cash flow from operating activities:
Depreciation 7,018 16,898 Changes in:
Receivables ‐ agency fees 123,797 (134,675) Receivables ‐ White Pines pass through (1,818,329) (209,113) Receivables ‐ PILOT pass through 32,471 294 Accounts payable (9,700) (681,910) Payables ‐ White Pines pass through 1,828,011 199,431 Payables ‐ PILOT pass through (32,471) (294) Escrows and Deposits (105,404) 357,062 Net cash flows from operating activities $ 1,996,465 $ 1,042,621 Reconciliation of operating income to net cash flows from Operating activities:
Operating income $ 1,971,072 $ 1,494,928 Adjustment to reconcile operating income to net cash flow from operating activities:
Depreciation 7,018 16,898 Changes in:
Receivables ‐ agency fees 123,797 (134,675) Receivables ‐ White Pines pass through (1,818,329) (209,113) Receivables ‐ PILOT pass through 32,471 294 Accounts payable (9,700) (681,910) Payables ‐ White Pines pass through 1,828,011 199,431 Payables ‐ PILOT pass through (32,471) (294) Escrows and Deposits (105,404) 357,062 Net cash flows from operating activities $ 1,996,465 $ 1,042,621 The accompanying notes are an integral part of these financial statements ‐ 11 ‐ The accompanying notes are an integral part of these financial statements ‐ 11 ‐
(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 is a special‐purpose government, a financing authority, which is a separate legal entity, governed by a board consisting of seven board members. 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 considered a discretely presented component unit of the County based on the criteria set forth by the Governmental Accounting Standards Board (GASB).
(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 is a special‐purpose government, a financing authority, which is a separate legal entity, governed by a board consisting of seven board members. 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 considered 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 an enterprise fund. Enterprise 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
Measurement Focus and Basis of Accounting The Agency operates as an enterprise fund. Enterprise 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. ‐ 12 ‐ 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. ‐ 12 ‐
(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, 2023 and 2022.
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, 2023 and 2022.
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 post remediation 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, 2023 and 2022.
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 post remediation 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, 2023 and 2022.
‐ 13 ‐ ‐ 13 ‐
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
Investment in Real Property The Agency considers investment in real property to be real property that is acquired and held primarily for the purpose of income or profit and has a present service capacity based solely on its ability to generate cash or be sold to generate cash. Investment in real property purchases are recorded at cost, including (1) the contract/purchase price; (2) the costs of closing the transaction and obtaining title, including commissions, options, legal fees, title search, insurance, and past due taxes; (3) the costs of surveys; and (4) the cost of preparing the property for its intended use. The Agency expenses capitalized costs incurred and to be incurred that exceed the estimated value of any revised development when it is substantially complete and ready for its intended use. These revisions resulted in the Agency recognizing an expense of $1,595,007 of previously capitalized and incurred costs.
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
Investment in Real Property The Agency considers investment in real property to be real property that is acquired and held primarily for the purpose of income or profit and has a present service capacity based solely on its ability to generate cash or be sold to generate cash. Investment in real property purchases are recorded at cost, including (1) the contract/purchase price; (2) the costs of closing the transaction and obtaining title, including commissions, options, legal fees, title search, insurance, and past due taxes; (3) the costs of surveys; and (4) the cost of preparing the property for its intended use. The Agency expenses capitalized costs incurred and to be incurred that exceed the estimated value of any revised development when it is substantially complete and ready for its intended use. These revisions resulted in the Agency recognizing an expense of $1,595,007 of previously capitalized and incurred costs.
At December 31, 2023, investment in real property consists of land related to the White Pine Commerce Park purchased with the intention to expand the Park to approximately 1,300 acres to meet the larger geographic footprint necessary to support future development. The investment in real property balance of $30,756,703 at December 31, 2023 represents the total purchase price of the land.
Additions to investment in real property during 2023 totaled $4,984,184, comprised of land purchased during 2023 of $2,679,472 and parcels reclassified from capital assets of $2,304,712. In addition, certain parcels of land totaling $2,140,557 were reclassified to capital assets land ‐ White Pine South. 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 At December 31, 2023, investment in real property consists of land related to the White Pine Commerce Park purchased with the intention to expand the Park to approximately 1,300 acres to meet the larger geographic footprint necessary to support future development. The investment in real property balance of $30,756,703 at December 31, 2023 represents the total purchase price of the land.
Additions to investment in real property during 2023 totaled $4,984,184, comprised of land purchased during 2023 of $2,679,472 and parcels reclassified from capital assets of $2,304,712. In addition, certain parcels of land totaling $2,140,557 were reclassified to capital assets land ‐ White Pine South. 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.
‐ 14 ‐ 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.
‐ 14 ‐
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
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 Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
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.
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.
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 9/15/20) 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.
‐ 15 ‐ In accordance with New York State General Municipal Law, the Agency has instituted a Recapture Policy (last revised 9/15/20) 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.
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(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
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.
(A Discretely Presented Component Unit of the County of Onondaga, New York) Notes to Financial Statements
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.
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, 2023 and 2022: December 31, 2023 Abatement Project Mortgage Sales PILOT Total Wallace Supply, LLC d/b/a JSWG Supply, LLC $ 24,000 $ 182,000 $ 161,989 $ 367,989 QP2 Properties, LLC 166,418 1,347,857 ‐ 1,514,275 Syracuse Haulers Waste Removal, Inc. 10,804 205,167 124,163 340,134 CVE US EI4 North, LLC 31,725 188,000 ‐ 219,725 CVE US EI5 Manlius East, LLC 111,375 660,000 ‐ 771,375 CVE US EI6 Manlius West, LLC 99,394 589,000 ‐ 688,394 $ 443,716 $ 3,172,024 $ 286,152 $ 3,901,892 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, 2023 and 2022: December 31, 2023 Abatement Project Mortgage Sales PILOT Total Wallace Supply, LLC d/b/a JSWG Supply, LLC $ 24,000 $ 182,000 $ 161,989 $ 367,989 QP2 Properties, LLC 166,418 1,347,857 ‐ 1,514,275 Syracuse Haulers Waste Removal, Inc. 10,804 205,167 124,163 340,134 CVE US EI4 North, LLC 31,725 188,000 ‐ 219,725 CVE US EI5 Manlius East, LLC 111,375 660,000 ‐ 771,375 CVE US EI6 Manlius West, LLC 99,394 589,000 ‐ 688,394 $ 443,716 $ 3,172,024 $ 286,152 $ 3,901,892 December 31, 2022 Abatement Project Mortgage Sales PILOT Total Fayette Manlius, LLC $ 66,825 $ 228,800 $ 1,841,278 $ 2,136,903 Immediate Mailing Services, Inc. 3,600 88,000 31,661 123,261 J.W. Didado Electric, LLC 51,479 323,000 303,658 678,137 1046 Old Seneca Turnpike, LLC 143,287 1,084,800 ‐ 1,228,087 Cryomech, Inc. 105,200 637,934 324,042 1,067,176 Peregrine 92,326 350,000 1,080,029 1,522,355 Baldwinsville Senior Housing Preservation ‐ ‐ 8,722,137 8,722,137 $ 462,717 $ 2,712,534 $ 12,302,805 $ 15,478,056 ‐ 16 ‐ December 31, 2022 Abatement Project Mortgage Sales PILOT Total Fayette Manlius, LLC $ 66,825 $ 228,800 $ 1,841,278 $ 2,136,903 Immediate Mailing Services, Inc. 3,600 88,000 31,661 123,261 J.W. Didado Electric, LLC 51,479 323,000 303,658 678,137 1046 Old Seneca Turnpike, LLC 143,287 1,084,800 ‐ 1,228,087 Cryomech, Inc. 105,200 637,934 324,042 1,067,176 Peregrine 92,326 350,000 1,080,029 1,522,355 Baldwinsville Senior Housing Preservation ‐ ‐ 8,722,137 8,722,137 $ 462,717 $ 2,712,534 $ 12,302,805 $ 15,478,056 ‐ 16 ‐
(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
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