8.2 Levy 2004 BID Fees
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
10/27/03
TIME
4:00 P.M.
AGENDA SECTION
NO:
ORIGINATING DEPARTMENT:
APPROVED FOR
AGENDA:
8
ITEM
NO:
2
CITY MANAGER'S OFFICE
BY: Dennis M. Kissinger
City Manager
BY:
ITEM:
Ordinance No. 03-10172
AN ORDINANCE LEVYING SALINA BUSINESS IMPROVEMENT DISTRICT NUMBER 1
SERVICE FEES FOR 2004, IN ACCORDANCE WITH K.S.A. 12-1791, AND REPEALING
ORDINANCE NUMBER 02-10108.
GENERAL BACKGROUND:
Kansas State Law (K.S.A. 12-1781 et seq) governs the procedure for the creation and financing of
one or more Business Improvement Districts 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. Financing of a B.I.D. is through service fees applicable to all
businesses within a district. In 1983, the City Commission approved the creation of Business
Improvement Number 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 20 years. Cities may
provide B.I.D. services directly through city employees or by contract with a not-for-profit
corporation, From 1983 to 1987, the City directed B.I.D. programs and services. Since 1987, that
effort has been delegated to Salina Downtown, Inc. (S.D. I.), a not-for-profit advocacy and
marketing organization which primarily has used the "Kansas Main Street" model for downtown
economic and community development.
State law provides for each B.I.D. to have a City appointed Board of Advisors, who may also serve
as the Board for the not-for-profit corporation. In Salina, the B.I.D. Board and S.D.I. Board are
made up of the same individuals serving a dual role. S.D,I. provides for annual elections to the
Board, and the City Commission has chosen to use those election results in its B.I.D. Board
appointment process to help assure the Board of Advisors is made up of a broad base of persons
representing downtown businesses impacted by the programs and service fees.
DOWNTOWN PLAN:
The downtown B.I.D. remained relatively static from 1987 to 2001. In late 2001, Progressive Urban
Management Associates, Inc. (PUMA) was hired to perform an economic analysis to determine a
benchmark for our downtown's economic vitality and to assist in developing a comprehensive
economic development and organization plan specifically tailored to Salina's business and
community climate. The planning process during 2002 included very extensive public involvement,
particularly focused on downtown stakeholders. The final plan was presented to the City
Commission at a Study Session to assure it met the Commission's goals and desires for
downtown. 2003 was the first implementation year for PUMA plan policies and objectives.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
pATE
10/27/03
TIME
4:00 P.M.
AGENDA SECTION
NO:
ORIGINATING DEPARTMENT:
APPROVED FOR
AGENDA:
ITEM
NO:
CITY MANAGER'S OFFICE
BY: Dennis M. Kissinger
City Manager
BY:
Page 2
SERVICE FEES:
A B.I.D. program of services is financed through a service fee on businesses (as defined by state
law) within a district. These annual service fees are mandatory payments as established by City
ordinance. The PUMA plan involved an extensive review of the methodology of the service fee
structure and recommended a major revision to improve equity and administrative efficiency.
In November 2002, the City Commission approved Ordinance No. 02-10108 f3stablishing a 2003
service fee schedule using the new methodology as recommended by the consultants, the 8.1.D.
Board of Advisors, and city staff. As a City of Salina fee, it is billed and collected by the City's
Finance Department with the assistance of S.D. I. staff. The 2003 service fee pian is performing as
expected in 2003, from both a financial and administrative perspective. Anticipated service fee
income for 2003 is $89,900.
Originally, the plan was to implement a "Phase 2" of the service fee schedule designed to generate
a total of $100,000 for the B.I.D. budget in 2004. Using the same methodology as developed, this
would have required a substantial increase in the fee schedule. However, city staff, S.D. I. staff and
board officers have over the past 60 days worked to evaluate carefully the full financial status and
budgetary needs of the B,I.D. This fiscal evaluation included a special financial overview study
session with the full Board to review preliminary financial planning and analysis with the City
Manager. Based on that analysis, staff and the B.I.D. board reached the conclusion that they could
meet their 2004 service goals and financial targets without a B.I.D. service fee rate increase in
2004. The operating expenses for the B.I.D. are somewhat lower than originally anticipated, and
the year-end 2002 financial status was better than projected. Those factors combine to result in a
projected year-end 2003 fiscal condition with reserves higher than their targets; with those funds
available for 2004 use. With no rate change for 2004, $89,900 is also the estimated revenue (no
change from 2003).
2004 BUDGET:
A preliminary Salina Downtown, Inc. 2004 budget was presented to the City Commission in May.
Enclosed is the latest update to that projected 2004 budget. Their budget delineates projected
expenditures for downtown service operations, as well as Business Support, Destination
Marketing, Communications and Advocacy and Special Events. Work in each of the above areas
is guided by Committees comprised of downtown business representatives. The 2004 S.D.I.
budget is the mechanism used for the B.I.D. service plan, following the outline of the PUMA master
plan. Some downtown plan components are led by the City and some by S.D.I.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
10/27/03
TIME
4:00 P.M.
AGENDA SECTION
NO:
ORIGINATING DEPARTMENT:
APPROVED FOR
AGENDA:
ITEM
NO:
CITY MANAGER'S OFFICE
BY: Dennis M. Kissinger
City Manager
BY:
Page 3
STAFF COMMENT:
Since the originally proposed 2004 fee schedule increase is not now recommended by the B.I.D.
Board of Advisors nor the city staff, the adoption of the rate schedule ordinance is much more
"routine" than expected. Without any rate increase for next year, there is a continued opportunity
to work toward the goals of the PUMA plan in its second full year and show value added. Good
progress has been made in year one, but there is much more to do.
City staff is recommending you consider this ordinance on first reading today, with second reading
in two weeks (November 10). One of the PUMA plan objectives is to have an annual business
satisfaction survey accomplished within the 8.1.0. area, That work is underway and a status report
will be available November 10. In addition, city staff is evaluating our billing, collection and
accounts receivable issues for B.I.D. service fees. We may also have a report on that by
November 10.
ACTION:
Consider Ordinance No. 03-10172 on first reading, levying B.I.D. No, 1 service fees for 2004 and
set the November 10, 2003 agenda for second reading.
Enclosures
BID Boundary and Sub-Areas
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Districts
c=J Civic, Hospital, Mill
.. Santa Fe
.. Employment
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,
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OJ J911~1¡;lJ:J
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N
W-+,E
S
1 0/13/22-°3Ll\l.er~~°r1. ~L~eserves based on 03 budç~l
-ÃCt~¡¡I_- - fuiT~nt ESl[t-n- 'Bu~~eted ------L
2002 ,I 2003 I ' 2003 I , 2004 :
Revenue:. ,---i- ,. ..----H--.--.--, i -_.-----ti-------+
S~rv¡ceFeei.- ..- - -- ---[-~-[l.26&8.9.00tr-L~-_89,9001t$ 89,900.00 1 i $ .~~
()l}Janization COr1.tr~u.!iOIl.~--~-~--L----------:-~ ~,OOO li____14,OOO.00 : : 5,000.00 ¡
City Gra..r1.u.co, n.,_trac,t_,_" -. , -. -".."-, --¡-----r. i --, ~8,.,.00"Q":,29,,...¡.I. -, .. ,3,_~,Q90- H-, 38,000,00: 38,000.00 ','
~~j~%~me-------- ~-~--t----4'1~j:öö¡ i. - -~'~~~-~ ~:g~~:~~ ! 4,~~~:~~ ¡
~f~~;~gto:o~~- =: il-E:¡ff!ijf ~~! ~ 2O:gg~ ¡ t.-20'¡!ii
TotaIRe-venue~-.---- --~-:-I 141,430.00 II 166,506.00' 167,300.00 i: 158,000.00 i
b~:~:~~~~;;¡~=~-~:.-r=.~==-=tt=---==-Jt=-==-- , Ii =t
. ~:r 11-6:~~.=';,;gg:tf~ '::~gggg kr- ';::gggg 1
~~~~~, ~:~~~;;tealth, _ill 2,809.00 'I 4,149 :' 9,396.00~ 9,500.00 l
Total Personnel Expense: 'I 74,985.00 I I 81,949,00 I 88,696.00 I I 89,000.00 1
Consumables: ---=--t-¡-- -E' i --11 U I
Irave~~I1-conference)---.l......L-_I___- 416.00., 500 i ~-- 500.00 U 50lf()Ot
Outsideprofessio,n.'.,~S,e.rvices_- I' U,i'_'___,7, .00.'_,,_-"""_',.1'00011 - 1,000.00 I 1 1,000.00 I
Rent - ----- :! ----~~(JO:OQJ; - 5,55011 5,100.00 I I 6,000.00 I
Office Supplies . -~ ---.l-i6~00 i _1,248 ~ 1,700.00 L 1,700.00 .
Telephone 1 I I 1,237.00 1,044, 1,440.00 I . 1,440.00
Postage (includes printing for 2062fTT- 1,617.00--1,412 i 1,800.00 i 1,800.00
Copies .--- --~H=F-T 669.00 I ------504 700.00 700.00
Priñ¡¡ng- - - I -- ----=-TT--- 128 i 400.00 I 400.00
~E_r1lp_uter~upplie_sn___-_.j I ' 1,158.00' 330 1 500.00 43!~.00
,A,dve:,:!isinÇJ_____---~-J ¡ 1,~~.00, 400 i 400.00 400.00
Equi¡:¡ment Repa!r~___----.i_1--+ 320~ J -- 568 11. 300.00' ~~
Building R~.?irs/Maintenance L, I I 588.00_~-W- 700.00 i ¡ 700.00 ~
Accounting_____----!-J. i 2,80Q.00 ,2,668 I 2,600.00 ' I 2,600.00
Insurance j , I 1,946.00 2,200 i I 2,200.00' 2,000.00
g]~~~~f*~~.-,rld--===-,l ¡ ..".=.3]3.00 "¡-..' --=-90011..900,00: '---OOC~
registration) _.__1 i I .- 673.00 , I --- 1,500 IL___..!.,500.00 II 1,50(~
Moving EX¡:Jenses_----Jq=t ~462.00 ' I I -=----L
Meeting E>5EenS~__~+-¡- 372.00 ___461: 600.00 i 600.00
Utilities -- ._------!-...+--~-- ...... 1,381.00 - -.______1 ,4?§-4- 1,700.00, 1,700.00
T "" .- -- - ¡i I - 49.00 - ..!5'J.; , -- 150.00' 225.00
Bad Debt Write-offs ' 515.00 i , " - 300.00
§~~~~~:~~~ (NO-ïre-~ected on a: I :--=--=~f-- _0_--+- ,1 ,50(~
~ash Basis Budget) -~L! i I 1-1
_Total C()nsl!.mabl~~ ¡ -_J 24,284.00 II 22,712.54: I 24,190.00 II 26,700.00 I
R;P~~:~~~~;:~m.nt .- _, ..' I - II __[I 1,OOO~
' I-]
---~--- .. ¡ .._---t
1,457.00 I 11,000 .
S_~1-~_A _DQWNTC:>IJV_fII,INC._~-
-~-
--.---.--,
--~
14,000.00
14,500.00
--~-
Business Support u-
- !
De~tir1atio~ r:--!arketin~___----=*= ==
,<::ommunication~_~ Advocacy-
Newsletter
~urvey
Logo Redesi~
!nternet - Web Redesign
Annual Meeting
Total Communications &
Advocacy-
~'pecial Events
Total Expenses
Excess (Deficit) Revenue over
Expense
-~
6,701.00 I
14,500
--- --J ..--
i
--_._~
3,115.00 -_?,400 1..400.00
500.00
-.--
498.00
1,408.00
876
1,080 -,
500.00
1,100.00
5,021.00
20,831.00
133,279.00
4,356 4,500.00
20,000.00 I 20,000.00
-154,517.54 I 165,886.00
----~-
__11,988.46 1:-- 1,414.00
--r~
27,624.00 27,624.00
1}....151.00
----
Beginning Reserves (Cash
Plus 12/31 AR)
encmg Reserves (Cash plus
12/31 AR)
19,473.00
------
---~
$ 27,624.00
$ 39,612.46
$ 29,038.00
10,000.00
17,500.00
2,400.00
500.00
1,000.00
1,100.00
5,000.00
20,000.00
169,200.00
(11,200.00)
29,038.00
$
17,838.00
SALINA DOWNTOWN, INC. Reserves based on current 03 estimates
__n.n_-':~:1 ,-~~-!TC"iõwpL:i 2003 #d9.t~~04 ..1-'=
~~~;eU~~es ---- ---~~=t-+=-h-- ~6~8¡9~0-6Ih-ä~;O~~ I
g. ;~'~~~~~o~~:~;b"tiO"' - =t=E=~~ ~3.=~'~O~~-I.~~iJ~~-....'.~.~. ::~~t.
~i~~::~sl~i~~me--=-~ -- ~~Jt~~~-6-H-- - __3,~~~ ~
;~~~~I ~~:~~Sg ----- '---R=t~~..~~=~~g~~r¡-E-..'-~~~~'
Miscellaneous Income I . - I I 100
Total Revenue 141,430.00 I I 166,506.00:
Operating Expenses: ---t~---- .-----¡ ~I-'------T: m. ---------ii--- --- ..._- .~-
Personnel '. I----~+f- I
Salaries ------- --T-l,-~jl'.'~.~-665-O294306'00'QO~,j,~~=~725'8000ãot.- .7;3,30_0.:QQ - 7_35-,,690000~.00'~0- ---~
_payr~Taxe.s___----- ,- 6,000,00 . . .
:;~~~,~:~;:~s~~ealth, -- -mil-~r ~:8~~:0~lr 4:149 !¡ 9,396.00 rAI 9,500.00 I
~Total Personnel Expense: 74,985.00 ,I 81,949.00 I : 88,696.00 -I 89,000.00 1----
Consumables: ---------- , : ': 1---
Travel (non-conferencef~---I LiÙ;.oo : ¡--- 5001j- 500,00 500.00 I ~
Outside Professional Services 1-------=¡:O°JrT---1 ,000 r¡-- 1,000,00 1,000.00 !
Rent 'I -- 5,100.00 T----5,55Ö¡r--5::10Ò~6Õ--6:O00J)1-n~
~;~;h~~~Plies ----.---- - --=F-~=+1[~I ~r- '+~:~~;T=-; ::~~:~~ I -;~~~:~~ ~
6~;~:;e (includes printing for~-i---,I-=- 1,~~~:~~ ,:.-_~-~ì'--=-~_~~~~:~~ I 1- 1,~~~:~~ r=
Printing ~ -:' 128¡' 400.00 I 400.00
~~~:rt~~~~gSUPPlies ----- -}=1=+~~~:~-~-F~--=- ~~~-IL= ~~~:~~ r~-- :~~:~~ i =-
-- -- ------,..------ +------
Equipment Repairs ',320.00 I 568 ' , 300.00 I 300.00 I
Building Repairs/Maintenance -i-----588.00n - --nor;--- 700.00 700.00 T' -
--,mum_, - - -------- _dO' ------,., - -- --~--- .~ '
Accounting I: I 2,800.00 I , 2,668 I '2,600,00 2,600.00 I
Insurance ~-~------- -~-- ,-- -1 ----{946.00 112,2Öö;~--2)00.00 -- 2,000:OO~ --
Dues & Subscriptions I 373.601'-----900:1 ---~-900.00 I 900.00 ,
Confere~ces (travel and ; ¡-- I i
registration) 673,00 , ' 1,500 ! : 1,500.00 I 1,500.00 I
Moving Expenses 2,462,00 ¡ ¡---~-~-=--;:-- - -¡ .. ---
Meeting Expenses 372.00 Il- 461 1-'----6'00.00 600.00
Utilities 1,381,00 II ---1,429 ¡t- 1,700.00 1,700,00 r~
~;~:~~~~~;ite-offs ..-tl=t=1' r 1-n 5~:::íF=~0!¡--- ---n-150~00- 1,~~~i+=
Depreciation (Not refle. .étéd on a I--T---- ¡ 1. .. --.-, i.
Cash BasIs Budget) : I . ! 1 ¡ , I
Total Consumable~;---~-- ¡----¡--- I 24,284.00 II 22,712.54: : 24,190.00 I I 26,700.00 I
R~;~~~~~~~~~e~ment: I I +---~---H--~----=--Jf~-~ 1,000.00 ~=
Business Support ,~--i--1.45i:ooH"1-f;'õ-~f~ 14,000.00 I~ 10,000.00 I~=
Destination Marketing A--6-;-701.oöf!-- --f4;SÕ'õ":'i" 14,500.00 Ih;soõ~oó+==
~~:~~t:~cations & A~\f()C'!.CY-l¡ i, .I-~=-=lt=-~- ---~T-----~-- ~ ---------~=~=-
---+_n;3.!~.QQ-IJ _?,4QQL'2...,!00,OQ-J. L- 2,400.001- ----
Survey ! I - I I -: , 500.00 I ¡ -
-,=-ogo Redesign I -- -------- : : --.. '!_--~=-- - -j r----500:00¡~_=-
~~~~na~t~e~~nbg Redesign 1 ,:;~:~~ tr=-~--~T;- -..f,~~ -' ~ :~~~:~~ 1----
Total Communications & I-I ': I 1--
!\dvocacy 5,021.00 II 4,356 Ii 4,500.00 i , 5,000.00
Special Events 20,831.0011 20,000.00 I, 20,000.00 I 20,000.00 I ..
Total Expenses H---i--'¡j3,279.oo-1i15Ü17.54 . ¡" 165,886.00 169,200.00 T
:::::,::'::::::::~:::.'+! r~I=";8846-F"::::: i1 (11.20000t=
Plus 12131 AR) : I. I 19,473.00 II 27,624.00 I: 27,624.00 I 39,612.46
~~n¡:)eserves (C-as'h=plus ii--1 ~---27,~~4.00 II ; 39,612~:~Îr$- ~:,~38.00 11$ 28,412.46-1-
-.-...---- I ----- .------ n
j ------~ -
,$ 89,900.00 $ 89,900.00'
! 14,000.00 5,000.00 I
- 38,000.00 38,000.001
i- 3,500.00, 4,000.00 L
_1,000.00 I 200.00 j
r- 20,000.00 20,000.00':
800.00 800.00 I
, " 100,00 100,00 I
I 167,300.00 I 158,000.00 I