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8.1 2012 BID Fees CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 11/7/2011 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: APPROVED FOR NO: AGENDA: CITY MANAGER ITEM NO. BY: Page 1 BY: Jason Gage ITEM:Ordinance No. 11-10623 An ordinance levying Salina Business Improvement District No. 1 service fees for 2012, in accordance with K.S.A. 12-1791 and repealing Ordinance No. 10-10577. BACKGROUND: Kansas State Law (K.S.A. 12-1781 et seq) governs the procedure fo r the creation and financing of one or more Business Improvement Districts (BID) within cities, for the purpose of providing administration and financing of additional and extended services to businesses within such districts. These services are intended to restore or promote the economic vitality of the district and the general welfare of the city. Financ ing of a BID is through service fees applicable to all businesses within a district. In 1983, the City Commission approved the creation of BID No. 1 covering certain downtown areas of Salina, along with the associated service fees. The concept of "self-governance" for downtown has continued for the past 23 years. Cities may provide BID services directly thr ough city employees or by contract with a not-for-profit corporation. From 1983 to 1987, the City direct ed BID programs and services. Sinc e 1987, that effort has been delegated to Salina Downtown, Inc. (SDI), a not-for-profit advocacy and marketing organization. State law provides for each BID to have a city appointed board of advisors, who may also serve as the board for the not-for-profit corporation. In Salina, the BID and SDI boards are made up of the same individuals serving a dual role. SDI provides fo r annual elections to the Board, and the City Commission has chosen to use those election results in its BID appointment process to help assure the Board of Advisors is made up of a broad bas e of persons representing downtown businesses impacted by the programs and service fees. Service Fees: A BID program of services is financed through a service fee on busi nesses (as defined by state law) within a district. It is important to note that BID fees cannot be levied on buildings, owners or properties under state law. These annual service fees are mandatory payments as established by city ordinance. As a City of Salina fee, it is billed and collected by the City's Finance Department with the assistance of SDI staff. The BID/SDI Board is recommending adoption of the service fee schedule for 2012 with a 3.5% increase. 2012 Budget: A preliminary SDI 2012 budget was presented to the City in May. Their budget delineates projected expenditures for downtown serv ice operations, as well as bus iness support and recruitment, communications and advocacy and destination Marketing. Work in each of the above areas is guided by committees comprised of downtown business representatives. The 2012 budget is the mechanism used for the BID service plan, foll owing the outline of t he PUMA master plan. Some downtown plan components are led by the City and some by SDI. RECOMMENDED ACTION: Approve Ordinance No. 11-10623 on first reading, levying BID No.1 service fees for 2012. August 10, 2011 On The Pot SDI President Samantha Angell, Mayor Jason Gage, City Manager Salina Taco Johns City of Salina SDI Vice President PO Box 736 Salina, KS 67402-0736 Hampton and Royce SDI Treasurer Dear Mayor Angell and Mr. Gage, Richardson At the regular monthly meeting, August 9, 2011, the Lee District Board of Developments SDI Secretary Advisors recommended that the City Commission consider a 3.5% increase in the Lee District Service Fees for 2012. The City Commission annually reviews and establishes Service Fee rates in November. Salina Regional Health Cente r SDI Past President Both the current rate schedules and the proposed rate schedules are enclosed. KC&G Business Appraisal Please feel free to contact our office if you have any questions regarding this Associates recommendation of the Lee District Board of Advisors. Land Title Services Thank you. Simply Baby and More Sincerely, Quilting Station Phyllis Klima Property Developer Executive Director Executive Director - B.I.D. ANNUAL SERVICE FEE WORKSHEET (2011) - All businesses located between Ash Street EMPLOYMENT DISTRIC T and South Street EXCLUDING ground floor Santa Fe (Santa Fe District) Minimum: $124.20 2 to 10: $41.40 per Empl.11 & Over: $20.70 per Empl. Assessment Caps 2 to 10: $414 11 to 50: $828 Over 50: $1,242 * Service fee based on number of employees only. Minimum rate included as as long as total does not exceed $500. No. Employees 12345678910 Assessment ($) $124.20$161.40$202.80$244.20$285.60$327.00$368.40$409.80$414.00$414.00 11121314151617181920 $420.70$441.40$462.10$482.80$503.50$524.20$544.90$565.60$586.30$607.00 21222324252627282930 $627.70$648.40$669.10$689.80$710.50$731.20$751.90$772.60$793.30$814.00 31323334353637383940 $828.00$828.00$828.00$828.00$828.00$828.00$828.00$828.00$828.00$828.00 41424344454647484950 $828.00$828.00$828.00$828.00$828.00$828.00$828.00$828.00$828.00$828.00 51525354555657585960 $848.70$869.40$890.10$910.80$931.50$952.20$972.90$993.60$1,014.30$1,035.00 61626364656667686970+ 1055.701076.401097.101117.801138.501159.201179.901200.60$1,221.30$1,242.00 - All businesses located between Elm HOSPITAL/MILL DISTRICT Street and Ash Street, and between South Street and Prescott Street. Minimum $82.8 2 to 10: $26.91 per Empl.11 and Over: $14.49 per Empl. : Assessment Caps 2 to 10: $271.17 11 to 50: $560.97 Over 50: $850.77 * Service fee based on number of employees only. Minimum rate included as as long as total does not exceed $333.33. No. Employees 12345678910 Assessment ($) $82.80$109.71$136.62$163.53$190.44$217.35$244.26$271.17$271.17$271.17 11121314151617181920 $285.66$300.15$314.64$329.13$343.62$358.11$372.60$387.09$401.58$416.07 21222324252627282930 $430.56$445.05$459.54$474.03$488.52$503.01$517.50$531.99$546.48$560.97 31323334353637383940 $560.97$560.97$560.97$560.97$560.97$560.97$560.97$560.97$560.97$560.97 41424344454647484950 $560.97$560.97$560.97$560.97$560.97$560.97$560.97$560.97$560.97$560.97 51525354555657585960 $575.46$589.95$604.44$618.93$633.42$647.91$662.40$676.89$691.38$705.87 61626364656667686970+ $720.36$734.85$749.34$763.83$778.32$792.81$807.30$821.79$836.28$850.77 11/3/2011