6.4 Levy 2001 BID Fees CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE TIME
11/06/00 4:00 P.M.
AGENDA SECTION:
NO.
ITEM
NO.
ORIGINATING DEPARTMENT: APPROVED FOR
6 AGENDA:
CITY MANAGER
BY: Jason Gag~
4 BY: ~
Item:
First reading for Ordinance 00-10006 levying the 2001 service fees for Business Improvement District No.
1.
Background:
Annually, the Salina Business Improvement District (B.I.D.) No. 1 submits a budget and recommended
program of services for the following calendar year. The budget was submitted earlier this year and was
taken under advisement by the City Commission. It is also the responsibility of the B.I.D. Board to
recommend the levying of Business Improvement District fees adequate to fund the proposed program of
services.
Enclosed is the recommended fee structure. The proposed fees are unchanged from pdor years. A
representative from the B.I.D. will be present to answer questions.
Under state law, there is a protest period for Business Improvement District fees. If a majority of business
owners in the distdct sign a petition opposing the fees within a 45-day period after passage and
publication (approximately November 13), the B.I.D. is dissolved. Based on this timetable, an opposition
petition would have to be submitted by approximately December 28, 2000.
Recommendation:
Consider Ordinance 00-10006 on first reading.
Item:
Acknowledgement of amended 2001 budget for Business Improvement District (B.I.D.) Number I
Background:
In May of this year, the City Commission acknowledged the receipt of the 2001 budget for the Business
Improvement Distdct (BID) Number 1. State law requires the budget be submitted to the City Commission
by May 15th of each year. Since that time, the B.I.D. has approved some changes to the 2001 budget. As
a result, the Board of Advisors has submitted an amended 2001 budget for acknowledgement by the City
Commission. The amendment does not include any changes to the City's B.I.D. contribution.
Recommendation:
Motion to acknowledgement receipt of amended 2001 budget for Business Improvement District Number
1.
Attachments: Attachment A - BID No. 1 Requested Schedule of Fees for 2001
Attachment B - Original 2001 Budget
Attachment C -Amended 2001 Budget and Narrative
Ordinance Number 00-10006
Salina
Business Improvement District
established in 1983 by the City of Salina for Downtown revitalization
No.
1
ATTACHMENT
October 16, 2000
JudyLong, City Clerk
City ofSalina
300West Ash
Salina, KS 67401
Dear Ms. Long:
At their regular monthly meeting, October 10th, the Salina Business District No. 1 Advisory
Board approved the annual District No. 1 services fees for the year 2001. The schedule of fees
is the same as 2000.
Location Fixed Rate General Rate Office Rate Assessment Cap
Area 1 $160.00 $ 8.79/ft. $125.46/prof. $ 850.01
Area 2 80.00 3.29/fi. 46.95/prof. 338.25
Area 3 40.00 0.93/ft. 13.23/prof. 112.76
The Salina Downtown, Inc. 2001 Budget and Schedule of Services are also enclosed along with
a cover letter to the commissioners.
If you have any questions regarding this r information, please give me a call.
-.
Sincerely,/f
Ntek Slechta
Executive Director
cc: Dennis Kissinger, City Manager
114-A South Seventh Post Office Box 1065
FAX (785)825-7216
Salina, Kansas 67402-1065 (785)825-0535
salinadowntown.com
Jim Ravenkamp - President, Wayne DeBey -Vice President, Louise Appleby -Secretary, Steve Michel - Treasurer,
Andy Andarson, Tom Ball, Liz Carroll, Harold Cooley, La Voile Frick, Jerry Hinrikus, Bernard Jilka,
Jim Loader, Ken Wasserman, Kristin Seaton - ex officio, Nick Slechta - Executive Director
SALINA DOWNTOWN, INC.
2001 PRELIMINARY BUDGET
1999
INCOME Budget
Unaudited
01 B.I.D. Assessments 73,386
02 Organization Contribution 35,000
03 Annual Meeting 1,253
04 S.F. Days 9,860
05 Partnership (new program 1999) 2,855
06 Interest 2,622
07 Special Projects (Fund raisers, Private Promotions) 12,303
08 Miscellaneous 152
09 Contributions In-Kind 0
TOTAL INCOME 137,431
OPERATING EXPENSES
ORGANIZATION
10 Salaries .52,422
11 .Payroll Taxes 4,010
12 Health Insurance 3,000
13 Travel 442
14 Outside Professional Services -0-
15 Rent 4,800
16 Office Expense a. Supplies 1,776
16b Telephone l, 131
16c Postage 1,795
16d Copies 413
16e Printing -0-
16f Computer Supplies 658
16g Intemet Expense (new in 1999) 189
17 Advertising 95
18 Equipment Repairs 264
19 Building Repair/maintenance 159
20 Accounting 2,260
21 Insurance 1,005
22 Dues/subscriptions 957
23 Newsletter 1,342
24a Conferences/State & National/Board Training 1,516
24b Meeting Expenses 980
ATTACHMENT
2000 2001
Budget Budget
73,000 73,000
36,000 38,000
600 1,000
8,500 8,500
4,000 4,000
2,000 2,000
5,000 9,000
100 100
0 0
129,200 135,600
53,190 55,170
4,070 4,220
3,000 *8,000
500 500
400 400
4,800 4,800
1,600 1.700
!,500 1,200
1,500 1,800
300 300
400 400
500 500
600 700
100 100
300 300
300 300
2~00 2,600
900 1,000
900 900
1~00 1,400
1,200 1,200
900 900
24c
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
Page 2
ORGANIZATION
(continued)
Annual Meeting
Depreciation
Utilities
Taxes
B.I.D. Maintenance Agreement
Other Organization Expenses (Clock $673)
B.I.D. Expenses
Attorney Fees
Office Equipment Replacement
TOTAL ORGANIZATION EXPENSE
DESIGN
Design Committee Expenses
Banner Project
Christmas Decorations
Other Design Expense (Public Improvements)
TOTAL DESIGN EXPENSE
ECONOMIC RESTRUCTURING
Downtown Marketing
Other Marketing Expense (Directories, etc)
Community Education
TOTAL ECONOMIC RESTRUCTURING EX-
PENSE
PROMOTION
Generic Advertising & Misc. Projects
Private Promotion & Program Activities
Santa Fe Day
Christmas Promotion, BID
Expenses paid with contributions in-kind
TOTAL PROMOTION EXPENSE
TOTAL OPERATING EXPENSES
EXCESS (DEFICIT) REVENUE OVER EXPENSE
Previous Year Estimated Reserve
1999
· Budget
Unaudited
1,692
2,425
1,352
205
17,000
2,831
210
0
0
104,929
600
0
1,094
149
1,843
1,412
1,276
0
2,688
3,858
11,353
11,131
873
0
27,215
136,667
756
29,000
2000
Budget
9O0
1,900
1,200
200
17,000
2,000
5OO
500
3,000
107,760
200
1,500
1,200
2,100
5,000
3,100
2,000
0
5,100
3,100
5,000
10,000
800
0
18,900
136,760
(7,560)
21,000
2001
Budget
1,600
2,400
1.400
250
17,000
3,000
250
250
0
114,540
2OO
1,ooo
2,000
2,000
5,200
3,000
2,000
I00
5,100
4,000
9,000
11,000
9OO
0
24,900
149,740
14,140)
7,000
INCOME
SALINA DOWNTOWN, INC.
2001 BUDGET
01 B.I.D. Assessments
02 Organization Contribution
03 Annual Meeting
04 S.F. Days
05 Partnership (new program 1999)
06 Interest
07 Special Projects (Fund raisers, Private Promotions)
08 Miscellaneous (loss on sale of assets)
09 Contributions In-Kind
TOTAL INCOME
OPERATING EXPENSES
ORGANIZATION
10 Salaries
11 Payroll Taxes
12 Health Insurance
13 Travel
14 Outside Professional Services
15 Rent
16 Office Expense a. Supplies
16b Telephone
16c P,ostage
16d Copies
16e Printing
16f Computer Supplies
16g Internet Expense (new in 1999)
17 Advertising
18 Equipment Repairs
19 Building Repair/maintenance
20 Accounting
21 Insurance
22 Dues/subscriptions
23 Newsletter
24a Conferences/State & National/Board Training
24b Meeting Expenses
1999
Budget
Audited
73,386
35,000
1,253
9,860
2,855
2,601
14,427
(886)
34,822
173,318
52,423
4,212
3,000
442
-0-
4,800
1,622
1,322
1,795
413
-0-
658
189
95
264
159
2,260
736
957
1,342
1,516
980
2000
Budget
Revised
73,000
36,000
600
8,500
4,000
3,000
5,000
100
0
130,200
59,000
4,520
4,310
500
400
4,900
1,600
1,500
1,500
300
400
500
600
100
300
300
2,400
900
900
1,200
1,200
9O0
ATTACHMENT 'C'
2001
Budget
73,000
38,000
1,000
8,500
4,000
2,000
9,000
100
0
135,600
58,200
4,450
8,000
500
400
5,100
1,700
1,200
1,800
300
400
500
700
lO0
300
300
2,600
2,000
900
1,400
1,200
900
Page 2
24c
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
ORGANIZATION
(continued)
Annual Meeting
Depreciation
Utilities
Taxes
B.I.D. Maintenance Agreement
Other Organization Expenses (Clock $673)
B.I.D. Expenses
Attorney Fees
Office Equipment Replacement
TOTAL ORGANIZATION EXPENSE
DESIGN
Design Committee Expenses
Banner Project
Christmas Decorations
Other Design Expense (Public Improvements)
TOTAL DESIGN EXPENSE
ECONOMIC RESTRUCTURING
Downtown Marketing
Other Marketing Expense (Directories, etc)
Community Education
TOTAL ECONOMIC RESTRUCTURING
EXPENSE
PROMOTION
Generic Advertising & Misc. Projects
Private Promotion & Program Activities
Santa Fe Day
Christmas Promotion, BID
Expenses paid with contributions in-kind
TOTAL PROMOTION EXPENSE
TOTAL OPERATING EXPENSES
EXCESS (DEFICIT) REVENUE OVER EXPENSE
Previous Year Estimated Reserve
1999
Budget
Audited
1,692
1,965
1,352
205
17,000
2,986
210
0
0
104,595
600
0
1,094
149
1,843
1,412
1,276
0
2,688
4,008
12,827
11,131
873
34,822
63,661
172,787
531
29,000
2000
Budget
Revised
900
-0-
1,200
200
17,000
2,000
5OO
500
110,530
200
-0-
1,200
2,100
3,500
1,100
1,000
0
2,100
3,100
5,000
10,000
800
0
18,900
135,030
(4,430)
29,000
200 I
Budget
1,600
1,400
250
17,000
3,000
250
250
0
116,700
200
2,000
2,000
4,200
3,000
2,000
100
5,100
4,000
9,000
11,000
900
0
24,900
150,900
(lS300)
24,000
P~e3
Explanations for the 2001 SDI Budget
INCOME
>Item 01 - is the estimated revenues from BID assessments. The total has allowance for new business three
month abatements and probable uncollectables total an estimated $1,200.
>Item 02 - the city's contribution to the business district. The SDI Board requests a $2,000 increase. Last year's
$1,000 increase was minimized when an $850 assessment was lost to a non-profit occupant.
>Item 03 - a revenue item based on the organization's annual meeting.
> Item 04 - revenue item for sponsorships, contributions and contract space to support the annual celebration,
Santa Fe Days. The related expense line item 42 indicates that the SDI will provide $2,500 from BID funds.
>Item 05 - revenues related to a private non-voting associate memberships project initiated in 1999.
> Item 07 - revenues from private sources to support private promotions and/or special projects such as Mother's
Day, Sidewalk Sale, Christmas, clock fund, banners, etc.
> Item 09 - in-kind is not budgeted as it is difficult to predict the amounts. It has no impact on the cash flow
budget. Line item 46 is the related offsetting expense.
EXPENSES
ORGANIZATION
Expense line items in the organization category are basic operating accounts except item 32.
> Items 10-11 & 12 - salaries and benefits for two full time employees. The salaries reflect the hiring of an
Executive Secretary in June, 2000 and an Executive Director, October 1 st. Item 12 includes an increase in
health insurance reimbursement of $2,200 per employee from $1,800 - $4,000. This has a potential increase
of $5,000 over previous year. 2000 Budget Rev. reflects a $3,000 signing bonus in the Salary item.
> Items 24a, b and c were formerly shown under one item of Conferences, Annual Meeting and Meetings.
Inasmuch as the current accounting program separates these items on the ledgers, the items are now
budgeted separately for easier understanding and better accountability,
DESIGN
> Item 36 - Continue projects started in 1999 - grant program to enhance storefront renovations ($1,000) and
for additional park style benches ($1,000) for customer convenience near downtown storefronts. The Design
Education Committee may commit revenues from a 2001 Loft Tour project to fund the storefront grants.
program.
> ECONOMIC RESTRUCTURING
> Item 37 - advertising in various mediums to enhance recruitment of businesses to the benefit of the general
welfare of the business district.
> Item 38 - new business directory styles developed in 2000 which include mailings to 21,000 area homes
and local distribution. Directory expense partially offset by advertising.
PROMOTION.
> Item 41- private promotions are the usual St. Pat's Day, Mother's Day, Sidewalk Sale, Christmas, etc. These
items are balanced by revenues noted in Item 07. No BID funds are expended in this category.
> Item 42 - includes $8,500 from Item 04 and $2,500 in BID seed money.
> Item 43 - includes expenses related to the holiday season such as the parade, lighting activities, children's
Christmas program and related expenses of a generic nature that benefit the entire district.
P~e4
Salina Downtown, Inc.
2001 Budget
Program of Services for
Salina Business Improvement District No. 1
Organization
· Administer Kansas Main Street IWW Grants to enhance the maintenance of downtown revitalization
efforts.
· Continue maintenance and improvements of district's streetscape, i.e., flower pots, park benches,
Christmas trees, and clean-up projects. Special attention to bird residue.on Santa Fe sidewalks.
· Continue the Salina Main Street Partnership/Associate Member Program to provide additional funds
as well as stakeholder input to continuing revitalization.
· Sponsor annual membership meeting to recognize successful activities and individuals.
Economic Restructuring
· Utilize the monthly newsletter to provide periodic property vacancy information to encourage
downtown workers to refer possible tenants in support of business recruitment.
· Allocate funding for business recruitment incentive awards for downtown worker's referrals.
· Aggressively pursue marketing opportunities to enhance business relocation, expansion or new
occupancy.
Promotion
· Provide administrative support for downtown promotions that improve image as well as offer
economic opportunities for businesses. Promotions are continually upgraded to include events and
activities for increased benefits to the entire district.
· Initiate at least one new promotional opportunity to assure "fresh" ideas that attract visitors to the
downtown.
· Sponsor an annual heritage celebration, Santa Fe Day, that serves the entire area..
· Provide a Christmas season promotion that embodies a parade, lighting of downtown, special events,
carriage rides and attractive sales efforts.
Promotion - Image Development
· Provide opportunities for interpersonal relationship building through regular social/business events
(Mixers).
· Fund jingle advertising and encourage business to make maximum utilization of the slogan, jingle
and logo to enhance the marketability of downtown to the benefit of everyone.
Design
· Provide free technical and professional design assistance to any business seeking advise on exterior
signs and/or storefront repair or renovation.
· Plan activities which educate and inform the publics of the importance and value of original
architecture.
· Continue a $1,000 grant program for use in storefront improvement projects utilizing private
revenues.
· Allocate funds for benches to place near downtown storefronts.
· Do a cost sharing with selected property owners for building history plaques.
October 16, 2000
Discover downtown Salina
a proud history .... a promising future
Downtown revitalization in association with the Kansas Main Street Program
City Commissioners
City of Salina
300 West Ash
Salina, KS 67401
Dear Commissioners:
The Salina Downtown Inc., Board of Directors has approved the attached 2001 Budget and Schedule of
Services with an explanation of specific line items to enhance your understanding of the budget, haas-
much as this final budget has some revisions from the May budget which you have already considered,
I would like to point out the specific differences.
The 2000 budget expenses have been revised to offset changes in salaries and benefits. Without mak-
ing these and other adjustments, the organization would have experienced a significant depletion of
reserve funds. Those changes are reflected in bold face type,
Revenues:
No changes except Line Item 06 - Interest will exceed the estimate by over $1,000 in 2000.
Operating Expenses
Line items 10-13 - Salaries and Payroll Taxes - The combination of these items reflects an increase of
$7,260. The most significant impact for 2000 and 20001 is in the Health Insurance benefit which was
increased from $1,800 per employee to $4,000. Previously, the Executive Director was the only em-
ployee utilizing the insurance reimbursement. Now, both current employees are eligible and applying
for thC benefit. The projected salary item for 2001 is less than for 2000 as the result of the SDI Board
of Director's decision to provide the new Executive Director a one-time, $3,000, signing bonus to assist
with moving costs.
Line item 15 - Rent - $25 per month increase.
Line item 21-Insurance- Upon advise of the organization's agent, the corporate liability insurance
coverage was increased $1,000. The previous carrier is no longer available. The agency does not be-
lieve that they can obtain a quote as generous as the previous carrier, thus the increase.
Line item 25 - Depreciation - Inasmuch as depreciation does not reflect cash flow, it is zeroed on the
budget in order to reflect an accurate bottom line. The estimate should continue to be included in the
monthly financial statements since it is an element of the annual audit and is considered an expense.
114-A South Seventh Post Office Box 1065 Salina, Kansas 67402-1065 (785) 825-0535 FAX (785) 825-7216 salinadowntown.com
Jim Ravenkamp - President, Wayne DeBey - ~qce President, Louise Appleby - Secretary, Steve Michel - Treasurer
Andy Anderson, Tom Bell, Liz Carroll, Harold Cooley, La Velle Frick, Jerry Hinrikus, Bernard Jilka,
Jim Loader, Ken Wasserman, Kristin Seaton - Ex Officio, Melinda Lingle - Executive Director
City Commissioners
October 16, 2000
Page 2
Line item 32 - Office Equipment Replacement - Copier replacement ($3,000) for 2000 is on hold in-
definitely.
Line Item 34 -Banner Project - The preliminary budgeted $1,000 has been deleted in favor of a pos-
sible fund raising project. There is an on-going need to replace damaged and worn banners.
Summary
The proposed 2000 year-end cuts will ensure a more acceptable deficit and provide sufficient reserve
funds to cover the projected $15,300 deficit currently being projected for 2001. The board of directors
will be planning additional fund-raising activities for 2001.
It is obvious that past revitalization efforts have been very successful in spite of operating with a lim-
ited financial base. The board is now anticipating moving forward to new levels of improvements
within the business district. They recognize and appreciate the City's interest and the demonstrated
support with recent cleanliness and appearance issues being addressed on behalf of downtown. The
new tree removal/replacement and cleaning services for bird residue are examples of such support.
In closing, Salina Downtown, Inc. and the City of Salina has been and will continue to be a vital pan-
nership. The common interest in revitalization which involves restoration and preservation of histori-
cally significant properites benefits the entire community. The downtown business community is cog-
nizant of the historic and cultural role that is uniquely theirs. The generous acceptance of the respon-
sibility for restoration and preservation by property owners is quite evident.
We thank you for your past support as well as your consideration for the $2,000 increase in the 2001
budget.
Sincerely,
Nci~k Slechta
Executive Director
cc: Dennis Kissinger, City manager
Jason Gage, Assistant City Manager