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8.2 Levy 2006 BID Service Fees CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE 11/07/05 TIME 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: APPROVED FOR NO: 8 AGENDA: CITY MANAGER'S OFFICE ITEM NO: 2 BY: Jason A. Gage BY: ITEM: Ordinance No. 05-10311 AN ORDINANCE LEVYING SALINA BUSINESS IMPROVEMENT DISTRICT NUMBER 1 SERVICE FEES FOR 2006, IN ACCORDANCE WITH K.S.A. 12-1791, AND REPEALING ORDINANCE NUMBER 04-10248. 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 22 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. 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. Implementation of the plan policies and objectives has occurred since 2003. SERVICE FEES: A B.I.D. program of services is financed through a service fee on businesses (as defined by state CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE 11/07/05 TIME 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: APPROVED FOR NO: 8 AGENDA: CITY MANAGER'S OFFICE ITEM NO: 2 BY: Jason A. Gage BY: law) within a district. It is important to note that B.I. D. 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 S.D.I. staff. The B.I.D./S.D.I. Board is recommending adoption of the service fee schedule for 2006 at no change from the 2003, 2004 and 2005 rate levels. The Board recently approved recommendations regarding some changes in the implementation of these fees. After analyzing the impact of the recommendations, staff determined they would result in a significant modification to the fee methodology and prompt additional review in light of fee parameters provided by State law. As a result, staff will work with the B.I. D./S. 0.1. Board and executive director in 2006 to review those aspects of the fee methodology for possible revisions in the 2007 service fee structure. DEBT COLLECTION: A formalized fee appeal process and delinquent fee collection are two issues still of concern to the B.I.D./S.D.I. Board. Staff is currently working with the Board to better formalize our procedures and improve overall collection. We expect to reduce current delinquent balances over the next few months. This will include the use of various tools, including: collection agencies, outside attorney use, and the State Set-Aside Program. 2006 BUDGET: A preliminary Salina Downtown, Inc. 2006 budget was presented to the City in May. Enclosed is the latest update to that projected 2006 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 2006 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. ANNUAL SURVEY: One of the PUMA plan objectives is to have an annual business satisfaction survey accomplished within the B.I.D. area. That work is underway and a summary report will be available prior to year- end. RECOMMENDED ACTION: Consider Ordinance No. 05-10311 on first reading, levying B.I.D. No.1 service fees for 2006. Enclosures: Ordinance Number 05-10311 Revised 2006 B.I.D./S.D.I. Budget SALINA DOWNTOWN, INC- 2006 FINAL BUDGET with HOSPITAL CONTRIBUTION 9/13/05 draft ,. ------r- . _. Bud eted Bud eted ------."'!" . _._.,._----~ I 2005 Prelim 2006 Final 2006 Revenue~- -. --~ ---~--.--~-j=~-- - ~;~:~7;; -Co n ifi~U_ho_n~ ~ -- - - ~-==ttL~~-=--=-- ~~: ggg: gg $ Partnerships- u- . --:-- --~._-------1-t-+-----u_.l..OOO.OO ~ t:~: ~ ~~~:t-- - . ~ -~ --~--~t+---- 1 O. ~~~: ~~ Ann U §I ~ M ee If ng ~- -. -~--=- ~:~~----- ~--=1 !t--== 900. 00 I Mixer !nco~,~_--- ---_,.___L-_,__~- -4- 1.000.00 I Miscellaneous Income '100.00 ._-~ -- ,. --- .,. --"- --------------- _Special P!OL~_~~~_fa~_~Grants .Total Rev~nu~__- ---- -- ¡ - -.---L..-.--~----_----.l...-~-- 9perating Expenses: -- I I Salaries (2 positions & director retirement) 67.888.17 67,888.17 68,207.68 Payroll Taxes ----~-=-.J- - I ¡ 5,483.05 5,483.05 5,560.29 E~~Q9_e -~~!'_~_!_lt~~~_~a!!~.!_~e!!~al 4,752.00 4,752.00 5.184.00 leave} (non-conf~~enc_~) 500.00 500.00 500.00 ,9utsJge f~5?!ess!<?_,!~!._~ervi~es 1,500.00 1,500.00 1,500.00 Rent. ¡ ! i 6,300.00 6,300.00 6,300.00 -- --- - ~---- - -, ----------.. --I ----~- ---- - Q!fi~~_~UPR~!~S - --- - -~---- ,---_u_------,----------~-l-L------------ 1,800.00 1.800.00______- 1,800.00 T~I_~F_hQ~~~- -- . --'- -- --- ---- d.._---------_._------L~--~ 1,440.00 : -- 1,440.00 ----___~--1440.00 Postage ; . ~ ~ 2,200.00 ~ 2,200.00 ¡ 3,000.00 ~~ ~~ ~te rS up pi i es _.~ .._-~=~ :--~:--_: ---+¡L :=- ~= -~!! ~~~-- ~~~ i r~= =- ~~~. ~~ - Adverti sin g- - --- -- -,- .u--- -------11[--- - 500_00 I 500.00 t- 600,00 - ------ -------_.----- -- -- -.----- __n__~ ----~--------'.-___n-'__-¡-Î'-O----------_U - --t--- Equipment Repairs; ; ¡ : 600.00 600.00 \ 600.00 BU1IcÙng Rep-air'siMaJn-ten-ance-----~n_----- -----r-rr-------------- 700,00 1 700.00-i-- 700.00 - ---- -----_.--- - -- -.- . ----- --- ---- ---- ---------~-~.¡----- . ~--_.-------.---~~- ..+----~---~-,----- Ac:c:<?_unt!n_9 - -- ~ -. - - -- -., - -- - - ------ - u_n_-4-L-~- - ------~O°9.:QQj 5,QOO.00 L---- --_5,500.00 Insurance, i ! : 3,500.00 ¡ 3,500.00 3,500.00 Dues &-S-uhs-cripilo--ns~-- - ---------._-------.- _n- ----------Tt-t----- --- 1,000.00 I 1,000.00 -. ---- 1,100.00 -- n- -----._------, -- -----,-.------------~---- ------ -,--- ------'--------+11---- --------,-------~~~-~- --------- Bank Service Charges t I I i ç-Þ~Xër~n~~-~_i~~a-~i~_- ~!1g~~_e_gl.št~~tí~Ú~) -~----===~1J=L-n~~:__=--=~: ,~500.00_j ._~-__~00.90 --,----------- ~~_~!!_ng E~p~_~?e? - -0--- - n__- "~------- u --- ----~----J--~-L- ------- 600.00 I 600.00 Utilities, : ; : 1,700.00 : 1,700.00 --- .-~---- - - - - -- --.-- _Uu--_--_n .------- ---~---~-t~---- --__n______-t~~- ~~~:~~XP~f1SeS~F eel~ J ml=~s:) -= _n_= -=~UL - ~=--225 -00 :1 - ~ - 225.00 ~ =~ 225:00 BasJ_Q~bt c .-- - -- . - 'Onn. - m' ---_._-~+------_?OOOO +--- 500_~- 500.00 ~ ~~ ~~~: Jeco ~ ~ t i 0 n~ ~--~~~~ =- -~-=----~T.J=-~-= ~ --_:~~: ~~ t ~~g: gât-__=j~~: g~ D~~pr~c_i_~_t~~_n (~~-~ r_~!~~cte~_9_~_~~~_9_a~isl____-~-1.-~- -- .---- --- ..-- . -~--,- --- --- --1------------~-,-~-- Special Project - Façade Grants : i ' i 12,000.00 To~¿Ù -6pe~aiing E~-xp-~n~~~-_~~--~~----~----=-~~-~--~-~~~I~--: 110,888.22 j 110,888.22 I 125,816.97 , i : 1 ---- ------, ----- ----- -----~-++-~------~----------1-- ----~---+- --_u,--------,~ i . L ; I --- ---, u_-- - -- ---' - -- -- -- - - - . --- - - ---- ,----.------- ,----+---+--~------, ,------- ¡--------~-- 1-~---'-~------ _B~~~n_~s_~ Support - ---- . -----. -- -- - - - __l-~ _: 9,000.00 ~ 9,000.00 ¡ 9,000.00 I Destir1ë:Ù:io~n Marketir,'g-.- - - -- ---- -- ------ - - - --- ------ - - ¡--:--:-__n --, - -- -, 2Ö~ooo.ool-~----- -20:000.00 -t-------- -- 20,000.00-- - ---_on' . u_---------- ----- -_.~-.- L ' I Communfèations &--AliVoca~-----"--------T-iT--~--' 5,500.00 ~- 5,500.00 r---- 6,200.00 SP~C-ial-E~en-t~' . - :~-.::::~_::=-:~-:-=-~:~ :~~:~=--10,OÓÕ.~; - 10,~00.0~----~ 5,000.00 -f o~T~-i~-¿~~~e-s -- ---~---~---==~u~-~~~-==-~-~~~=- ¡ 155,388.22 ¡ 155,388.22 I 166,016.97 EX_~-~~; ~~V~~UE!OV~r~~~~~~~ ~--~=:- :-~J~~=-=j"188.22) ! (188.22) r-- --_J 16.97) I ; , ~ t- .----- - ---- --- _--L---- -- -- - ---'- - --- - - ----, - - - .---_u u-- - -----.J--~--- -----. -----_._~-~--------- -----t---------- Capital Replacement: ! : ! i I .~ epf~ c~,--ç-~ ~-p_ut_~-~¡P!t~~~_r~~- ---,=--~= ~.~~ -=-~, ~- ---:~:;~-t~,-----=-~-~-=-500. °Ql-=-=----=- -ì-=-~--- AddBa ckDe pre datio n---- --------tH-- - i ~ ~-------- --,-. r--' -- - --------: ---------~--- ---" -'--------j1-+------'------------- f - ---~--i------ ---- ----1- - --------~-- ----",--------.-------.0----- Cash Expenditures: ! ; , 688.22 I (188.22 . 16.97 - ---- . - ---- - -- -----.--- ----- - ------ _n- -- - - ---- - -- - -'----- - - - -- -- -.------ -.----- -. ~~--i ---- --------- --------L---- ~-------_._~---- ----- ---_.-~---- ~-~g~~_r)ln9___~es_e~es_~ -- ---- -- ---n_' --- --- ----- ; : [ 54,253.58 ¡ 44,065.36 : 44,065.36 Ending Reserves ¡ i ! $ 54,065.36 i $ 43,877.14 $ 44,048.39 85,000.00 55,000.00 3,000.00 200.00 10,000.00 900.00 1,000.00 1 00. 00 --- 88,000.00 55,000.00 3,500.00 500.00 5,000.00 900.00 1,000.00 100.00 12,000.00 166,000_00 -t 155,200.00 155,200.00 1,500.00 -------- 600.00 2,200.00 -- - , - - -.--.-------------- -. - -- ----~- -----------------..----- - - - - - --. - - , I I ' - - ;-- -- -d ------ --- ..-_u_- :_--------- ._--_1.-J..J - --------.- --~-----1 -,_?q9~_~~9in!1in_g__~_~_s~_rves r~!lect ~10,000 paymef}t to City--foiJrash cans ~-=--~-~--~=--~ 'Bud et excludes de reciation, a non-cash item- ! - - - - . - ---- n.. - t - .