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 - .